[House Report 109-190]
[From the U.S. Government Publishing Office]
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-190
_______________________________________________________________________
ENERGY POLICY ACT OF 2005
----------
CONFERENCE REPORT
[To accompany H.R. 6]
July 27, 2005.--Ordered to be printed
ENERGY POLICY ACT OF 2005
109th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 109-190
======================================================================
ENERGY POLICY ACT OF 2005
_______
July 27, 2005.--Ordered to be printed
_______
Mr. Barton of Texas, from the committee of conference, submitted the
following
CONFERENCE REPORT
[To accompany H.R. 6]
The committee of conference on the disagreeing votes of
the two Houses on the amendment of the Senate to the bill (H.R.
6), to ensure jobs for our future with secure, affordable, and
reliable energy, having met, after full and free conference,
have agreed to recommend and do recommend to their respective
Houses as follows:
That the House recede from its disagreement to the
amendment of the Senate and agree to the same with an amendment
as follows:
In lieu of the matter proposed to be inserted by the
Senate amendment, insert the following:
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Energy
Policy Act of 2005''.
(b) Table of Contents.--The table of contents of this Act
is as follows:
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
Sec. 101. Energy and water saving measures in congressional buildings.
Sec. 102. Energy management requirements.
Sec. 103. Energy use measurement and accountability.
Sec. 104. Procurement of energy efficient products.
Sec. 105. Energy savings performance contracts.
Sec. 106. Voluntary commitments to reduce industrial energy intensity.
Sec. 107. Advanced Building Efficiency Testbed.
Sec. 108. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or concrete.
Sec. 109. Federal building performance standards.
Sec. 110. Daylight savings.
Sec. 111. Enhancing energy efficiency in management of Federal lands.
Subtitle B--Energy Assistance and State Programs
Sec. 121. Low income home energy assistance program.
Sec. 122. Weatherization assistance.
Sec. 123. State energy programs.
Sec. 124. Energy efficient appliance rebate programs.
Sec. 125. Energy efficient public buildings.
Sec. 126. Low income community energy efficiency pilot program.
Sec. 127. State Technologies Advancement Collaborative.
Sec. 128. State building energy efficiency codes incentives.
Subtitle C--Energy Efficient Products
Sec. 131. Energy Star program.
Sec. 132. HVAC maintenance consumer education program.
Sec. 133. Public energy education program.
Sec. 134. Energy efficiency public information initiative.
Sec. 135. Energy conservation standards for additional products.
Sec. 136. Energy conservation standards for commercial equipment.
Sec. 137. Energy labeling.
Sec. 138. Intermittent escalator study.
Sec. 139. Energy efficient electric and natural gas utilities study.
Sec. 140. Energy efficiency pilot program.
Sec. 141. Report on failure to comply with deadlines for new or revised
energy conservation standards.
Subtitle D--Public Housing
Sec. 151. Public housing capital fund.
Sec. 152. Energy-efficient appliances.
Sec. 153. Energy efficiency standards.
Sec. 154. Energy strategy for HUD.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
Sec. 201. Assessment of renewable energy resources.
Sec. 202. Renewable energy production incentive.
Sec. 203. Federal purchase requirement.
Sec. 204. Use of photovoltaic energy in public buildings.
Sec. 205. Biobased products.
Sec. 206. Renewable energy security.
Sec. 207. Installation of photovoltaic system.
Sec. 208. Sugar cane ethanol program.
Sec. 209. Rural and remote community electrification grants.
Sec. 210. Grants to improve the commercial value of forest biomass for
electric energy, useful heat, transportation fuels, and other
commercial purposes.
Sec. 211. Sense of Congress regarding generation capacity of electricity
from renewable energy resources on public lands.
Subtitle B--Geothermal Energy
Sec. 221. Short title.
Sec. 222. Competitive lease sale requirements.
Sec. 223. Direct use.
Sec. 224. Royalties and near-term production incentives.
Sec. 225. Coordination of geothermal leasing and permitting on Federal
lands.
Sec. 226. Assessment of geothermal energy potential.
Sec. 227. Cooperative or unit plans.
Sec. 228. Royalty on byproducts.
Sec. 229. Authorities of Secretary to readjust terms, conditions,
rentals, and royalties.
Sec. 230. Crediting of rental toward royalty.
Sec. 231. Lease duration and work commitment requirements.
Sec. 232. Advanced royalties required for cessation of production.
Sec. 233. Annual rental.
Sec. 234. Deposit and use of geothermal lease revenues for 5 fiscal
years.
Sec. 235. Acreage limitations.
Sec. 236. Technical amendments.
Sec. 237. Intermountain West Geothermal Consortium.
Subtitle C--Hydroelectric
Sec. 241. Alternative conditions and fishways.
Sec. 242. Hydroelectric production incentives.
Sec. 243. Hydroelectric efficiency improvement.
Sec. 244. Alaska State jurisdiction over small hydroelectric projects.
Sec. 245. Flint Creek hydroelectric project.
Sec. 246. Small hydroelectric power projects.
Subtitle D--Insular Energy
Sec. 251. Insular areas energy security.
Sec. 252. Projects enhancing insular energy independence.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve
and other energy programs.
Sec. 302. National Oilheat Research Alliance.
Sec. 303. Site selection.
Subtitle B--Natural Gas
Sec. 311. Exportation or importation of natural gas.
Sec. 312. New natural gas storage facilities.
Sec. 313. Process coordination; hearings; rules of procedure.
Sec. 314. Penalties.
Sec. 315. Market manipulation.
Sec. 316. Natural gas market transparency rules.
Sec. 317. Federal-State liquefied natural gas forums.
Sec. 318. Prohibition of trading and serving by certain individuals.
Subtitle C--Production
Sec. 321. Outer Continental Shelf provisions.
Sec. 322. Hydraulic fracturing.
Sec. 323. Oil and gas exploration and production defined.
Subtitle D--Naval Petroleum Reserve
Sec. 331. Transfer of administrative jurisdiction and environmental
remediation, Naval Petroleum Reserve Numbered 2, Kern County,
California.
Sec. 332. Naval Petroleum Reserve Numbered 2 Lease Revenue Account.
Sec. 333. Land conveyance, portion of Naval Petroleum Reserve Numbered
2, to City of Taft, California.
Sec. 334. Revocation of land withdrawal.
Subtitle E--Production Incentives
Sec. 341. Definition of Secretary.
Sec. 342. Program on oil and gas royalties in-kind.
Sec. 343. Marginal property production incentives.
Sec. 344. Incentives for natural gas production from deep wells in the
shallow waters of the Gulf of Mexico.
Sec. 345. Royalty relief for deep water production.
Sec. 346. Alaska offshore royalty suspension.
Sec. 347. Oil and gas leasing in the National Petroleum Reserve in
Alaska.
Sec. 348. North Slope Science Initiative.
Sec. 349. Orphaned, abandoned, or idled wells on Federal land.
Sec. 350. Combined hydrocarbon leasing.
Sec. 351. Preservation of geological and geophysical data.
Sec. 352. Oil and gas lease acreage limitations.
Sec. 353. Gas hydrate production incentive.
Sec. 354. Enhanced oil and natural gas production through carbon dioxide
injection.
Sec. 355. Assessment of dependence of State of Hawaii on oil.
Sec. 356. Denali Commission.
Sec. 357. Comprehensive inventory of OCS oil and natural gas resources.
Subtitle F--Access to Federal Lands
Sec. 361. Federal onshore oil and gas leasing and permitting practices.
Sec. 362. Management of Federal oil and gas leasing programs.
Sec. 363. Consultation regarding oil and gas leasing on public land.
Sec. 364. Estimates of oil and gas resources underlying onshore Federal
land.
Sec. 365. Pilot project to improve Federal permit coordination.
Sec. 366. Deadline for consideration of applications for permits.
Sec. 367. Fair market value determinations for linear rights-of-way
across public lands and National Forests.
Sec. 368. Energy right-of-way corridors on Federal land.
Sec. 369. Oil shale, tar sands, and other strategic unconventional
fuels.
Sec. 370. Finger Lakes withdrawal.
Sec. 371. Reinstatement of leases.
Sec. 372. Consultation regarding energy rights-of-way on public land.
Sec. 373. Sense of Congress regarding development of minerals under
Padre Island National Seashore.
Sec. 374. Livingston Parish mineral rights transfer.
Subtitle G--Miscellaneous
Sec. 381. Deadline for decision on appeals of consistency determination
under the Coastal Zone Management Act of 1972.
Sec. 382. Appeals relating to offshore mineral development.
Sec. 383. Royalty payments under leases under the Outer Continental
Shelf Lands Act.
Sec. 384. Coastal impact assistance program.
Sec. 385. Study of availability of skilled workers.
Sec. 386. Great Lakes oil and gas drilling ban.
Sec. 387. Federal coalbed methane regulation.
Sec. 388. Alternate energy-related uses on the outer Continental Shelf.
Sec. 389. Oil Spill Recovery Institute.
Sec. 390. NEPA review.
Subtitle H--Refinery Revitalization
Sec. 391. Findings and definitions.
Sec. 392. Federal-State regulatory coordination and assistance.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
Sec. 401. Authorization of appropriations.
Sec. 402. Project criteria.
Sec. 403. Report.
Sec. 404. Clean coal centers of excellence.
Subtitle B--Clean Power Projects
Sec. 411. Integrated coal/renewable energy system.
Sec. 412. Loan to place Alaska clean coal technology facility in
service.
Sec. 413. Western integrated coal gasification demonstration project.
Sec. 414. Coal gasification.
Sec. 415. Petroleum coke gasification.
Sec. 416. Electron scrubbing demonstration.
Sec. 417. Department of Energy transportation fuels from Illinois basin
coal.
Subtitle C--Coal and Related Programs
Sec. 421. Amendment of the Energy Policy Act of 1992.
Subtitle D--Federal Coal Leases
Sec. 431. Short title.
Sec. 432. Repeal of the 160-acre limitation for coal leases.
Sec. 433. Approval of logical mining units.
Sec. 434. Payment of advance royalties under coal leases.
Sec. 435. Elimination of deadline for submission of coal lease operation
and reclamation plan.
Sec. 436. Amendment relating to financial assurances with respect to
bonus bids.
Sec. 437. Inventory requirement.
Sec. 438. Application of amendments.
TITLE V--INDIAN ENERGY
Sec. 501. Short title.
Sec. 502. Office of Indian Energy Policy and Programs.
Sec. 503. Indian energy.
Sec. 504. Consultation with Indian tribes.
Sec. 505. Four Corners transmission line project and electrification.
Sec. 506. Energy efficiency in federally assisted housing.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
Sec. 601. Short title.
Sec. 602. Extension of indemnification authority.
Sec. 603. Maximum assessment.
Sec. 604. Department liability limit.
Sec. 605. Incidents outside the United States.
Sec. 606. Reports.
Sec. 607. Inflation adjustment.
Sec. 608. Treatment of modular reactors.
Sec. 609. Applicability.
Sec. 610. Civil penalties.
Subtitle B--General Nuclear Matters
Sec. 621. Licenses.
Sec. 622. Nuclear Regulatory Commission scholarship and fellowship
program.
Sec. 623. Cost recovery from Government agencies.
Sec. 624. Elimination of pension offset for certain rehired Federal
retirees.
Sec. 625. Antitrust review.
Sec. 626. Decommissioning.
Sec. 627. Limitation on legal fee reimbursement.
Sec. 628. Decommissioning pilot program.
Sec. 629. Whistleblower protection.
Sec. 630. Medical isotope production.
Sec. 631. Safe disposal of greater-than-Class C radioactive waste.
Sec. 632. Prohibition on nuclear exports to countries that sponsor
terrorism.
Sec. 633. Employee benefits.
Sec. 634. Demonstration hydrogen production at existing nuclear power
plants.
Sec. 635. Prohibition on assumption by United States Government of
liability for certain foreign incidents.
Sec. 636. Authorization of appropriations.
Sec. 637. Nuclear Regulatory Commission user fees and annual charges.
Sec. 638. Standby support for certain nuclear plant delays.
Sec. 639. Conflicts of interest relating to contracts and other
arrangements.
Subtitle C--Next Generation Nuclear Plant Project
Sec. 641. Project establishment.
Sec. 642. Project management.
Sec. 643. Project organization.
Sec. 644. Nuclear Regulatory Commission.
Sec. 645. Project timelines and authorization of appropriations.
Subtitle D--Nuclear Security
Sec. 651. Nuclear facility and materials security.
Sec. 652. Fingerprinting and criminal history record checks.
Sec. 653. Use of firearms by security personnel.
Sec. 654. Unauthorized introduction of dangerous weapons.
Sec. 655. Sabotage of nuclear facilities, fuel, or designated material.
Sec. 656. Secure transfer of nuclear materials.
Sec. 657. Department of Homeland Security consultation.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing Programs
Sec. 701. Use of alternative fuels by dual fueled vehicles.
Sec. 702. Incremental cost allocation.
Sec. 703. Alternative compliance and flexibility.
Sec. 704. Review of Energy Policy Act of 1992 programs.
Sec. 705. Report concerning compliance with alternative fueled vehicle
purchasing requirements.
Sec. 706. Joint flexible fuel/hybrid vehicle commercialization
initiative.
Sec. 707. Emergency exemption.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
Part 1--Hybrid Vehicles
Sec. 711. Hybrid vehicles.
Sec. 712. Efficient hybrid and advanced diesel vehicles.
Part 2--Advanced Vehicles
Sec. 721. Pilot program.
Sec. 722. Reports to Congress.
Sec. 723. Authorization of appropriations.
Part 3--Fuel Cell Buses
Sec. 731. Fuel cell transit bus demonstration.
Subtitle C--Clean School Buses
Sec. 741. Clean school bus program.
Sec. 742. Diesel truck retrofit and fleet modernization program.
Sec. 743. Fuel cell school buses.
Subtitle D--Miscellaneous
Sec. 751. Railroad efficiency.
Sec. 752. Mobile emission reductions trading and crediting.
Sec. 753. Aviation fuel conservation and emissions.
Sec. 754. Diesel fueled vehicles.
Sec. 755. Conserve by Bicycling Program.
Sec. 756. Reduction of engine idling.
Sec. 757. Biodiesel engine testing program.
Sec. 758. Ultra-efficient engine technology for aircraft.
Sec. 759. Fuel economy incentive requirements.
Subtitle E--Automobile Efficiency
Sec. 771. Authorization of appropriations for implementation and
enforcement of fuel economy standards.
Sec. 772. Extension of maximum fuel economy increase for alternative
fueled vehicles.
Sec. 773. Study of feasibility and effects of reducing use of fuel for
automobiles.
Sec. 774. Update testing procedures.
Subtitle F--Federal and State Procurement
Sec. 781. Definitions.
Sec. 782. Federal and State procurement of fuel cell vehicles and
hydrogen energy systems.
Sec. 783. Federal procurement of stationary, portable, and micro fuel
cells.
Subtitle G--Diesel Emissions Reduction
Sec. 791. Definitions.
Sec. 792. National grant and loan programs.
Sec. 793. State grant and loan programs.
Sec. 794. Evaluation and report.
Sec. 795. Outreach and incentives.
Sec. 796. Effect of subtitle.
Sec. 797. Authorization of appropriations.
TITLE VIII--HYDROGEN
Sec. 801. Hydrogen and fuel cell program.
Sec. 802. Purposes.
Sec. 803. Definitions.
Sec. 804. Plan.
Sec. 805. Programs.
Sec. 806. Hydrogen and Fuel Cell Technical Task Force.
Sec. 807. Technical Advisory Committee.
Sec. 808. Demonstration.
Sec. 809. Codes and standards.
Sec. 810. Disclosure.
Sec. 811. Reports.
Sec. 812. Solar and wind technologies.
Sec. 813. Technology transfer.
Sec. 814. Miscellaneous provisions.
Sec. 815. Cost sharing.
Sec. 816. Savings clause.
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. Building standards.
Sec. 915. Secondary electric vehicle battery use program.
Sec. 916. Energy Efficiency Science Initiative.
Sec. 917. Advanced Energy Efficiency Technology Transfer Centers.
Subtitle B--Distributed Energy and Electric Energy Systems
Sec. 921. Distributed energy and electric energy systems.
Sec. 922. High power density industry program.
Sec. 923. Micro-cogeneration energy technology.
Sec. 924. Distributed energy technology demonstration programs.
Sec. 925. Electric transmission and distribution programs.
Subtitle C--Renewable Energy
Sec. 931. Renewable energy.
Sec. 932. Bioenergy program.
Sec. 933. Low-cost renewable hydrogen and infrastructure for vehicle
propulsion.
Sec. 934. Concentrating solar power research program.
Sec. 935. Renewable energy in public buildings.
Subtitle D--Agricultural Biomass Research and Development Programs
Sec. 941. Amendments to the Biomass Research and Development Act of
2000.
Sec. 942. Production incentives for cellulosic biofuels.
Sec. 943. Procurement of biobased products.
Sec. 944. Small business bioproduct marketing and certification grants.
Sec. 945. Regional bioeconomy development grants.
Sec. 946. Preprocessing and harvesting demonstration grants.
Sec. 947. Education and outreach.
Sec. 948. Reports.
Subtitle E--Nuclear Energy
Sec. 951. Nuclear energy.
Sec. 952. Nuclear energy research programs.
Sec. 953. Advanced fuel cycle initiative.
Sec. 954. University nuclear science and engineering support.
Sec. 955. Department of Energy civilian nuclear infrastructure and
facilities.
Sec. 956. Security of nuclear facilities.
Sec. 957. Alternatives to industrial radioactive sources.
Subtitle F--Fossil Energy
Sec. 961. Fossil energy.
Sec. 962. Coal and related technologies program.
Sec. 963. Carbon capture research and development program.
Sec. 964. Research and development for coal mining technologies.
Sec. 965. Oil and gas research programs.
Sec. 966. Low-volume oil and gas reservoir research program.
Sec. 967. Complex well technology testing facility.
Sec. 968. Methane hydrate research.
Subtitle G--Science
Sec. 971. Science.
Sec. 972. Fusion energy sciences program.
Sec. 973. Catalysis research program.
Sec. 974. Hydrogen.
Sec. 975. Solid state lighting.
Sec. 976. Advanced scientific computing for energy missions.
Sec. 977. Systems biology program.
Sec. 978. Fission and fusion energy materials research program.
Sec. 979. Energy and water supplies.
Sec. 980. Spallation Neutron Source.
Sec. 981. Rare isotope accelerator.
Sec. 982. Office of Scientific and Technical Information.
Sec. 983. Science and engineering education pilot program.
Sec. 984. Energy research fellowships.
Sec. 984A. Science and technology scholarship program.
Subtitle H--International Cooperation
Sec. 985. Western Hemisphere energy cooperation.
Sec. 986. Cooperation between United States and Israel.
Sec. 986A. International energy training.
Subtitle I--Research Administration and Operations
Sec. 987. Availability of funds.
Sec. 988. Cost sharing.
Sec. 989. Merit review of proposals.
Sec. 990. External technical review of Departmental programs.
Sec. 991. National Laboratory designation.
Sec. 992. Report on equal employment opportunity practices.
Sec. 993. Strategy and plan for science and energy facilities and
infrastructure.
Sec. 994. Strategic research portfolio analysis and coordination plan.
Sec. 995. Competitive award of management contracts.
Sec. 996. Western Michigan demonstration project.
Sec. 997. Arctic Engineering Research Center.
Sec. 998. Barrow Geophysical Research Facility.
Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources
Sec. 999A. Program authority.
Sec. 999B. Ultra-deepwater and unconventional onshore natural gas and
other petroleum research and development program.
Sec. 999C. Additional requirements for awards.
Sec. 999D. Advisory committees.
Sec. 999E. Limits on participation.
Sec. 999F. Sunset.
Sec. 999G. Definitions.
Sec. 999H. Funding.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
Sec. 1001. Improved technology transfer of energy technologies.
Sec. 1002. Technology Infrastructure Program.
Sec. 1003. Small business advocacy and assistance.
Sec. 1004. Outreach.
Sec. 1005. Relationship to other laws.
Sec. 1006. Improved coordination and management of civilian science and
technology programs.
Sec. 1007. Other transactions authority.
Sec. 1008. Prizes for achievement in grand challenges of science and
technology.
Sec. 1009. Technical corrections.
Sec. 1010. University collaboration.
Sec. 1011. Sense of Congress.
TITLE XI--PERSONNEL AND TRAINING
Sec. 1101. Workforce trends and traineeship grants.
Sec. 1102. Educational programs in science and mathematics.
Sec. 1103. Training guidelines for nonnuclear electric energy industry
personnel.
Sec. 1104. National Center for Energy Management and Building
Technologies.
Sec. 1105. Improved access to energy-related scientific and technical
careers.
Sec. 1106. National Power Plant Operations Technology and Educational
Center.
TITLE XII--ELECTRICITY
Sec. 1201. Short title.
Subtitle A--Reliability Standards
Sec. 1211. Electric reliability standards.
Subtitle B--Transmission Infrastructure Modernization
Sec. 1221. Siting of interstate electric transmission facilities.
Sec. 1222. Third-party finance.
Sec. 1223. Advanced transmission technologies.
Sec. 1224. Advanced Power System Technology Incentive Program.
Subtitle C--Transmission Operation Improvements
Sec. 1231. Open nondiscriminatory access.
Sec. 1232. Federal utility participation in Transmission Organizations.
Sec. 1233. Native load service obligation.
Sec. 1234. Study on the benefits of economic dispatch.
Sec. 1235. Protection of transmission contracts in the Pacific
Northwest.
Sec. 1236. Sense of Congress regarding locational installed capacity
mechanism.
Subtitle D--Transmission Rate Reform
Sec. 1241. Transmission infrastructure investment.
Sec. 1242. Funding new interconnection and transmission upgrades.
Subtitle E--Amendments to PURPA
Sec. 1251. Net metering and additional standards.
Sec. 1252. Smart metering.
Sec. 1253. Cogeneration and small power production purchase and sale
requirements.
Sec. 1254. Interconnection.
Subtitle F--Repeal of PUHCA
Sec. 1261. Short title.
Sec. 1262. Definitions.
Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1264. Federal access to books and records.
Sec. 1265. State access to books and records.
Sec. 1266. Exemption authority.
Sec. 1267. Affiliate transactions.
Sec. 1268. Applicability.
Sec. 1269. Effect on other regulations.
Sec. 1270. Enforcement.
Sec. 1271. Savings provisions.
Sec. 1272. Implementation.
Sec. 1273. Transfer of resources.
Sec. 1274. Effective date.
Sec. 1275. Service allocation.
Sec. 1276. Authorization of appropriations.
Sec. 1277. Conforming amendments to the Federal Power Act.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
Sec. 1281. Electricity market transparency.
Sec. 1282. False statements.
Sec. 1283. Market manipulation.
Sec. 1284. Enforcement.
Sec. 1285. Refund effective date.
Sec. 1286. Refund authority.
Sec. 1287. Consumer privacy and unfair trade practices.
Sec. 1288. Authority of court to prohibit individuals from serving as
officers, directors, and energy traders.
Sec. 1289. Merger review reform.
Sec. 1290. Relief for extraordinary violations.
Subtitle H--Definitions
Sec. 1291. Definitions.
Subtitle I--Technical and Conforming Amendments
Sec. 1295. Conforming amendments.
Subtitle J--Economic Dispatch
Sec. 1298. Economic dispatch.
TITLE XIII--ENERGY POLICY TAX INCENTIVES
Sec. 1300. Short title; amendment to 1986 code.
Subtitle A--Electricity Infrastructure
Sec. 1301. Extension and modification of renewable electricity
production credit.
Sec. 1302. Application of section 45 credit to agricultural
cooperatives.
Sec. 1303. Clean renewable energy bonds.
Sec. 1304. Treatment of income of certain electric cooperatives.
Sec. 1305. Dispositions of transmission property to implement FERC
restructuring policy.
Sec. 1306. Credit for production from advanced nuclear power facilities.
Sec. 1307. Credit for investment in clean coal facilities.
Sec. 1308. Electric transmission property treated as 15-year property.
Sec. 1309. Expansion of amortization for certain atmospheric pollution
control facilities in connection with plants first placed in
service after 1975.
Sec. 1310. Modifications to special rules for nuclear decommissioning
costs.
Sec. 1311. 5-year net operating loss carryover for certain losses.
Subtitle B--Domestic Fossil Fuel Security
Sec. 1321. Extension of credit for producing fuel from a nonconventional
source for facilities producing coke or coke gas.
Sec. 1322. Modification of credit for producing fuel from a
nonconventional source.
Sec. 1323. Temporary expensing for equipment used in refining of liquid
fuels.
Sec. 1324. Pass through to owners of deduction for capital costs
incurred by small refiner cooperatives in complying with
Environmental Protection Agency sulfur regulations.
Sec. 1325. Natural gas distribution lines treated as 15-year property.
Sec. 1326. Natural gas gathering lines treated as 7-year property.
Sec. 1327. Arbitrage rules not to apply to prepayments for natural gas.
Sec. 1328. Determination of small refiner exception to oil depletion
deduction.
Sec. 1329. Amortization of geological and geophysical expenditures.
Subtitle C--Conservation and Energy Efficiency Provisions
Sec. 1331. Energy efficient commercial buildings deduction.
Sec. 1332. Credit for construction of new energy efficient homes.
Sec. 1333. Credit for certain nonbusiness energy property.
Sec. 1334. Credit for energy efficient appliances.
Sec. 1335. Credit for residential energy efficient property.
Sec. 1336. Credit for business installation of qualified fuel cells and
stationary microturbine power plants.
Sec. 1337. Business solar investment tax credit.
Subtitle D--Alternative Motor Vehicles and Fuels Incentives
Sec. 1341. Alternative motor vehicle credit.
Sec. 1342. Credit for installation of alternative fueling stations.
Sec. 1343. Reduced motor fuel excise tax on certain mixtures of diesel
fuel.
Sec. 1344. Extension of excise tax provisions and income tax credit for
biodiesel.
Sec. 1345. Small agri-biodiesel producer credit.
Sec. 1346. Renewable diesel.
Sec. 1347. Modification of small ethanol producer credit.
Sec. 1348. Sunset of deduction for clean-fuel vehicles and certain
refueling property.
Subtitle E--Additional Energy Tax Incentives
Sec. 1351. Expansion of research credit.
Sec. 1352. National Academy of Sciences study and report.
Sec. 1353. Recycling study.
Subtitle F--Revenue Raising Provisions
Sec. 1361. Oil Spill Liability Trust Fund financing rate.
Sec. 1362. Extension of Leaking Underground Storage Tank Trust Fund
financing rate.
Sec. 1363. Modification of recapture rules for amortizable section 197
intangibles.
Sec. 1364. Clarification of tire excise tax.
TITLE XIV--MISCELLANEOUS
Subtitle A--In General
Sec. 1401. Sense of Congress on risk assessments.
Sec. 1402. Energy production incentives.
Sec. 1403. Regulation of certain oil used in transformers.
Sec. 1404. Petrochemical and oil refinery facility health assessment.
Sec. 1405. National Priority Project Designation.
Sec. 1406. Cold cracking.
Sec. 1407. Oxygen-fuel.
Subtitle B--Set America Free
Sec. 1421. Short title.
Sec. 1422. Purpose.
Sec. 1423. United States Commission on North American Energy Freedom.
Sec. 1424. North American energy freedom policy.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
Sec. 1501. Renewable content of gasoline.
Sec. 1502. Findings.
Sec. 1503. Claims filed after enactment.
Sec. 1504. Elimination of oxygen content requirement for reformulated
gasoline.
Sec. 1505. Public health and environmental impacts of fuels and fuel
additives.
Sec. 1506. Analyses of motor vehicle fuel changes.
Sec. 1507. Additional opt-in areas under reformulated gasoline program.
Sec. 1508. Data collection.
Sec. 1509. Fuel system requirements harmonization study.
Sec. 1510. Commercial byproducts from municipal solid waste and
cellulosic biomass loan guarantee program.
Sec. 1511. Renewable fuel.
Sec. 1512. Conversion assistance for cellulosic biomass, waste-derived
ethanol, approved renewable fuels.
Sec. 1513. Blending of compliant reformulated gasolines.
Sec. 1514. Advanced biofuel technologies program.
Sec. 1515. Waste-derived ethanol and biodiesel.
Sec. 1516. Sugar ethanol loan guarantee program.
Subtitle B--Underground Storage Tank Compliance
Sec. 1521. Short title.
Sec. 1522. Leaking underground storage tanks.
Sec. 1523. Inspection of underground storage tanks.
Sec. 1524. Operator training.
Sec. 1525. Remediation from oxygenated fuel additives.
Sec. 1526. Release prevention, compliance, and enforcement.
Sec. 1527. Delivery prohibition.
Sec. 1528. Federal facilities.
Sec. 1529. Tanks on tribal lands.
Sec. 1530. Additional measures to protect groundwater.
Sec. 1531. Authorization of appropriations.
Sec. 1532. Conforming amendments.
Sec. 1533. Technical amendments.
Subtitle C--Boutique Fuels
Sec. 1541. Reducing the proliferation of boutique fuels.
TITLE XVI--CLIMATE CHANGE
Subtitle A--National Climate Change Technology Deployment
Sec. 1601. Greenhouse gas intensity reducing technology strategies.
Subtitle B--Climate Change Technology Deployment in Developing Countries
Sec. 1611. Climate change technology deployment in developing countries.
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
Sec. 1701. Definitions.
Sec. 1702. Terms and conditions.
Sec. 1703. Eligible projects.
Sec. 1704. Authorization of appropriations.
TITLE XVIII--STUDIES
Sec. 1801. Study on inventory of petroleum and natural gas storage.
Sec. 1802. Study of energy efficiency standards.
Sec. 1803. Telecommuting study.
Sec. 1804. LIHEAP Report.
Sec. 1805. Oil bypass filtration technology.
Sec. 1806. Total integrated thermal systems.
Sec. 1807. Report on energy integration with Latin America.
Sec. 1808. Low-volume gas reservoir study.
Sec. 1809. Investigation of gasoline prices.
Sec. 1810. Alaska natural gas pipeline.
Sec. 1811. Coal bed methane study.
Sec. 1812. Backup fuel capability study.
Sec. 1813. Indian land rights-of-way.
Sec. 1814. Mobility of scientific and technical personnel.
Sec. 1815. Interagency review of competition in the wholesale and retail
markets for electric energy.
Sec. 1816. Study of rapid electrical grid restoration.
Sec. 1817. Study of distributed generation.
Sec. 1818. Natural gas supply shortage report.
Sec. 1819. Hydrogen participation study.
Sec. 1820. Overall employment in a hydrogen economy.
Sec. 1821. Study of best management practices for energy research and
development programs.
Sec. 1822. Effect of electrical contaminants on reliability of energy
production systems.
Sec. 1823. Alternative fuels reports.
Sec. 1824. Final action on refunds for excessive charges.
Sec. 1825. Fuel cell and hydrogen technology study.
Sec. 1826. Passive solar technologies.
Sec. 1827. Study of link between energy security and increases in
vehicle miles traveled.
Sec. 1828. Science study on cumulative impacts of multiple offshore
liquefied natural gas facilities.
Sec. 1829. Energy and water saving measures in congressional buildings.
Sec. 1830. Study of availability of skilled workers.
Sec. 1831. Review of Energy Policy Act of 1992 programs.
Sec. 1832. Study on the benefits of economic dispatch.
Sec. 1833. Renewable energy on Federal land.
Sec. 1834. Increased hydroelectric generation at existing Federal
facilities.
Sec. 1835. Split-estate Federal oil and gas leasing and development
practices.
Sec. 1836. Resolution of Federal resource development conflicts in the
Powder River Basin.
Sec. 1837. National security review of international energy
requirements.
Sec. 1838. Used oil re-refining study.
Sec. 1839. Transmission system monitoring.
Sec. 1840. Report identifying and describing the status of potential
hydropower facilities.
SEC. 2. DEFINITIONS.
Except as otherwise provided, in this Act:
(1) Department.--The term ``Department'' means the
Department of Energy.
(2) Institution of higher education.--
(A) In general.--The term ``institution of
higher education'' has the meaning given the
term in section 101(a) of the Higher Education
Act of 1065 (20 U.S.C. 1001(a)).
(B) Inclusion.--The term ``institution of
higher education'' includes an organization
that--
(i) is organized, and at all times
thereafter operated, exclusively for
the benefit of, to perform the
functions of, or to carry out the
functions of 1 or more organizations
referred to in subparagraph (A); and
(ii) is operated, supervised, or
controlled by or in connection with 1
or more of those organizations.
(3) National laboratory.--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 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) Savannah River National Laboratory.
(P) Stanford Linear Accelerator Center.
(Q) Thomas Jefferson National Accelerator
Facility.
(4) Secretary.--The term ``Secretary'' means the
Secretary of Energy.
(5) Small business concern.--The term ``small
business concern'' has the meaning given the term in
section 3 of the Small Business Act (15 U.S.C. 632).
TITLE I--ENERGY EFFICIENCY
Subtitle A--Federal Programs
SEC. 101. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.
(a) In General.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.) is amended by
adding at the end the following:
``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL
BUILDINGS.
``(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 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 of the Capitol 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 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. 552. Energy and water savings measures in congressional
buildings''.
(c) Repeal.--Section 310 of the Legislative Branch
Appropriations Act, 1999 (2 U.S.C. 1815), is repealed.
SEC. 102. ENERGY MANAGEMENT REQUIREMENTS.
(a) Energy Reduction Goals.--
(1) Amendment.--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
2006 through 2015 is reduced, as compared with the
energy consumption per gross square foot of the Federal
buildings of the agency in fiscal year 2003, by the
percentage specified in the following table:
``Fiscal Year Percentage reduction
2006.................................................. 2
2007.................................................. 4
2008.................................................. 6
2009.................................................. 8
2010.................................................. 10
2011.................................................. 12
2012.................................................. 14
2013.................................................. 16
2014.................................................. 18
2015.................................................. 20.
(2) Reporting baseline.--The energy reduction goals
and baseline established in paragraph (1) of section
543(a) of the National Energy Conservation Policy Act
(42 U.S.C. 8253(a)(1)), as amended by this subsection,
supersede all previous goals and baselines under such
paragraph, and related reporting requirements.
(b) Review and Revision of Energy Performance
Requirement.--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, 2014, 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 2016 through 2025.''.
(c) 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.''.
(d) 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'';
(2) by striking ``a finding of impracticability''
and inserting ``the exclusion''; and
(3) by striking ``energy consumption requirements''
and inserting ``requirements of subsections (a) and
(b)(1)''.
(e) 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).''.
(f) Retention of Energy and Water 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 and Water Savings.--An agency may
retain any funds appropriated to that agency for energy
expenditures, water expenditures, or wastewater treatment
expenditures, at buildings subject to the requirements of
section 543(a) and (b), that are not made because of energy
savings or water savings. Except as otherwise provided by law,
such funds may be used only for energy efficiency, water
conservation, or unconventional and renewable energy resources
projects. Such projects shall be subject to the requirements of
section 3307 of title 40, United States Code.''.
(g) 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''.
(h) 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. 103. 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, 2012, 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. 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
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,
energy efficiency advocacy organizations,
national laboratories, universities, and
Federal facility 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 the reduced cost of
operation and maintenance
expected to result from
metering;
``(II) the extent to which
metering is 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 based on cost-effectiveness and
a schedule of 1 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.--Not 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. 104. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
(a) Requirements.--Part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.), as amended by
section 101, is amended by adding at the end the following:
``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.
``(a) Definitions.--In this section:
``(1) Agency.--The term `agency' has the meaning
given that term in section 7902(a) of title 5, United
States Code.
``(2) Energy star product.--The term `Energy Star
product' means a product that is rated for energy
efficiency under an Energy Star program.
``(3) Energy star program.--The term `Energy Star
program' means the program established by section 324A
of the Energy Policy and Conservation Act.
``(4) FEMP designated product.--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.
``(5) Product.--The term `product' does not include
any energy consuming product or system designed or
procured for combat or combat-related missions.
``(b) Procurement of Energy Efficient Products.--
``(1) Requirement.--To meet the requirements of an
agency for an energy consuming product, the head of the
agency shall, except as provided in paragraph (2),
procure--
``(A) an Energy Star product; or
``(B) a FEMP designated product.
``(2) Exceptions.--The head of an agency is not
required to procure an Energy Star product or FEMP
designated product under paragraph (1) if the head of
the 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
agency.
``(3) Procurement planning.--The head of an 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) Specific Products.--(1) 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 not
later than 120 days after the date of the enactment of this
section, after considering the recommendations of associated
electric motor manufacturers and energy efficiency groups.
``(2) All Federal agencies are encouraged to take actions
to maximize the efficiency of air conditioning and
refrigeration equipment, including appropriate cleaning and
maintenance, including the use of any system treatment or
additive that will reduce the electricity consumed by air
conditioning and refrigeration equipment. Any such treatment or
additive must be--
``(A) determined by the Secretary to be effective
in increasing the efficiency of air conditioning and
refrigeration equipment without having an adverse
impact on air conditioning performance (including
cooling capacity) or equipment useful life;
``(B) determined by the Administrator of the
Environmental Protection Agency to be environmentally
safe; and
``(C) shown to increase seasonal energy
efficiency ratio (SEER) or energy efficiency
ratio (EER) when tested by the National
Institute of Standards and Technology according
to Department of Energy test procedures without
causing any adverse impact on the system,
system components, the refrigerant or
lubricant, or other materials in the system.
Results of testing described in subparagraph (C) shall
be published in the Federal Register for public review
and comment. For purposes of this section, a hardware
device or primary refrigerant shall not be considered
an additive.
``(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 of the
National Energy Conservation Policy Act is further amended by
inserting after the item relating to section 552 the following
new item:
``Sec. 553. Federal procurement of energy efficient products.''.
SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS.
(a) Extension.--Section 801(c) of the National Energy
Conservation Policy Act (42 U.S.C. 8287(c)) is amended by
striking ``2006'' and inserting ``2016''.
(b) Extension of Authority.--Any energy savings performance
contract entered into under section 801 of the National Energy
Conservation Policy Act (42 U.S.C. 8287) after October 1, 2003,
and before the date of enactment of this Act, shall be
considered to have been entered into under that section.
SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.
(a) Definition of Energy Intensity.--In this section, the
term ``energy intensity'' means the primary energy consumed for
each unit of physical output in an industrial process.
(b) Voluntary Agreements.--The Secretary may enter into
voluntary agreements with 1 or more persons in industrial
sectors that consume significant quantities of primary energy
for each unit of physical output to reduce the energy intensity
of the production activities of the persons.
(c) Goal.--Voluntary agreements under this section shall
have as a goal the reduction of energy intensity by not less
than 2.5 percent each year during the period of calendar years
2007 through 2016.
(d) Recognition.--The Secretary, in cooperation with other
appropriate Federal agencies, shall develop mechanisms to
recognize and publicize the achievements of participants in
voluntary agreements under this section.
(e) Technical Assistance.--A person that enters into an
agreement under this section and continues to make a good faith
effort to achieve the energy efficiency goals specified in the
agreement shall be eligible to receive from the Secretary a
grant or technical assistance, as appropriate, to assist in the
achievement of those goals.
(f) Report.--Not later than each of June 30, 2012, and June
30, 2017, the Secretary shall submit to Congress a report
that--
(1) evaluates the success of the voluntary
agreements under this section; and
(2) provides independent verification of a sample
of the energy savings estimates provided by
participating firms.
SEC. 107. ADVANCED BUILDING EFFICIENCY TESTBED.
(a) Establishment.--The Secretary, in consultation with the
Administrator of General Services, shall establish an Advanced
Building Efficiency Testbed program for the development,
testing, and demonstration of advanced engineering systems,
components, and materials to enable innovations in building
technologies. The program shall evaluate efficiency concepts
for government and industry buildings, and demonstrate the
ability of next generation buildings to support individual and
organizational productivity and health (including by improving
indoor air quality) as well as flexibility and technological
change to improve environmental sustainability. Such program
shall complement and not duplicate existing national programs.
(b) Participants.--The program established under subsection
(a) shall be led by a university with the ability to combine
the expertise from numerous academic fields including, at a
minimum, intelligent workplaces and advanced building systems
and engineering, electrical and computer engineering, computer
science, architecture, urban design, and environmental and
mechanical engineering. Such university shall partner with
other universities and entities who have established programs
and the capability of advancing innovative building efficiency
technologies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$6,000,000 for each of the fiscal years 2006 through 2008, to
remain available until expended. For any fiscal year in which
funds are expended under this section, the Secretary shall
provide \1/3\ of the total amount to the lead university
described in subsection (b), and provide the remaining \2/3\ to
the other participants referred to in subsection (b) on an
equal basis.
SEC. 108. 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:
``INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY FUNDED
PROJECTS INVOLVING PROCUREMENT OF CEMENT OR CONCRETE
``Sec. 6005. (a) Definitions.--In this section:
``(1) Agency head.--The term `agency head' means--
``(A) the Secretary of Transportation; and
``(B) the head of any 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,
excluding lead 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) Federal procurement requirements.--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 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--
``(i) the extent to which recovered
mineral components are being
substituted for Portland cement,
particularly as a result of procurement
requirements; and
``(ii) the energy savings and
environmental benefits associated with
the substitution;
``(B) identify all barriers in procurement
requirements to greater realization of energy
savings and environmental benefits, including
barriers resulting from exceptions from the
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 Congress 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, not later than 1 year after the date on
which the report under subsection (c)(3) is submitted, take
additional actions under this Act 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--
``(1) to realize more fully the energy savings and
environmental benefits associated with increased
substitution; and
``(2) to eliminate barriers identified under
subsection (c)(2)(B).
``(e) Effect of Section.--Nothing in this section affects
the requirements of section 6002 (including the guidelines and
specifications for implementing those requirements).''.
(b) Conforming Amendment.--The table of contents of the
Solid Waste Disposal Act is amended by adding after the item
relating to section 6004 the following:
``Sec. 6005. Increased use of recovered mineral component in federally
funded projects involving procurement of cement or
concrete.''.
SEC. 109. 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 (in the case of residential
buildings) or ASHRAE Standard 90.1-1989'' and inserting
``the 2004 International Energy Conservation Code (in
the case of residential buildings) or ASHRAE Standard
90.1-2004''; and
(2) by adding at the end the following:
``(3)(A) Not later than 1 year after the date of enactment
of this paragraph, the Secretary shall establish, by rule,
revised Federal building energy efficiency performance
standards that require that--
``(i) if life-cycle cost-effective for new Federal
buildings--
``(I) the buildings be designed to achieve
energy consumption levels that are at least 30
percent below the levels established in the
version of the ASHRAE Standard or the
International Energy Conservation Code, as
appropriate, that is in effect as of the date
of enactment of this paragraph; and
``(II) sustainable design principles are
applied to the siting, design, and construction
of all new and replacement buildings; and
``(ii) if water is used to achieve energy
efficiency, water conservation technologies shall be
applied to the extent that the technologies are life-
cycle cost-effective.
``(iii) Not later than 1 year after the date of
approval of each subsequent revision of the ASHRAE
Standard or the International Energy Conservation Code,
as appropriate, the Secretary shall determine, based on
the cost-effectiveness of the requirements under the
amendment, whether the revised standards established
under this paragraph should be updated to reflect the
amendment.
``(iv) 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--
``(v) a list of all new Federal buildings owned,
operated, or controlled by the Federal agency; and
``(vi) a statement specifying whether the Federal
buildings meet or exceed the revised standards
established under this paragraph.''.
SEC. 110. DAYLIGHT SAVINGS.
(a) Amendment.--Section 3(a) of the Uniform Time Act of
1966 (15 U.S.C. 260a(a)) is amended--
(1) by striking ``first Sunday of April'' and
inserting ``second Sunday of March''; and
(2) by striking ``last Sunday of October'' and
inserting ``first Sunday of November''.
(b) Effective Date.--Subsection (a) shall take effect 1
year after the date of enactment of this Act or March 1, 2007,
whichever is later.
(c) Report to Congress.--Not later than 9 months after the
effective date stated in subsection (b), the Secretary shall
report to Congress on the impact of this section on energy
consumption in the United States.
(d) Right to Revert.--Congress retains the right to revert
the Daylight Saving Time back to the 2005 time schedules once
the Department study is complete.
SEC. 111. ENHANCING ENERGY EFFICIENCY IN MANAGEMENT OF FEDERAL LANDS.
(a) Sense of the Congress.--It is the sense of the Congress
that Federal agencies should enhance the use of energy
efficient technologies in the management of natural resources.
(b) Energy Efficient Buildings.--To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and
the Secretary of Agriculture shall seek to incorporate energy
efficient technologies in public and administrative buildings
associated with management of the National Park System,
National Wildlife Refuge System, National Forest System,
National Marine Sanctuaries System, and other public lands and
resources managed by the Secretaries.
(c) Energy Efficient Vehicles.--To the extent practicable,
the Secretary of the Interior, the Secretary of Commerce, and
the Secretary of Agriculture shall seek to use energy efficient
motor vehicles, including vehicles equipped with biodiesel or
hybrid engine technologies, in the management of the National
Park System, National Wildlife Refuge System, National Forest
System, National Marine Sanctuaries System, and other public
lands and resources managed by the Secretaries.
Subtitle B--Energy Assistance and State Programs
SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PROGRAM.
(a) Authorization of Appropriations.--Section 2602(b) of
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C.
8621(b)) is amended by striking ``and $2,000,000,000 for each
of fiscal years 2002 through 2004'' and inserting ``and
$5,100,000,000 for each of fiscal years 2005 through 2007''.
(b) Renewable Fuels.--The Low-Income Home Energy Assistance
Act of 1981 (42 U.S.C. 8621 et seq.) is amended by adding at
the end the following new section:
``RENEWABLE FUELS
``Sec. 2612. In providing assistance pursuant to this
title, a State, or any other person with which the State makes
arrangements to carry out the purposes of this title, may
purchase renewable fuels, including biomass.''.
(c) Report to Congress.--The Secretary shall report to
Congress on the use of renewable fuels in providing assistance
under the Low-Income Home Energy Assistance Act of 1981 (42
U.S.C. 8621 et seq.).
SEC. 122. WEATHERIZATION ASSISTANCE.
(a) Authorization of Appropriations.--Section 422 of the
Energy Conservation and Production Act (42 U.S.C. 6872) is
amended by striking ``for fiscal years 1999 through 2003 such
sums as may be necessary'' and inserting ``$500,000,000 for
fiscal year 2006, $600,000,000 for fiscal year 2007, and
$700,000,000 for fiscal year 2008''.
(b) Eligibility.--Section 412(7) of the Energy Conservation
and Production Act (42 U.S.C. 6862(7)) is amended by striking
``125 percent'' both places it appears and inserting ``150
percent''.
SEC. 123. STATE ENERGY PROGRAMS.
(a) State Energy Conservation Plans.--Section 362 of the
Energy Policy and Conservation Act (42 U.S.C. 6322) is amended
by inserting at the end the following new subsection:
``(g) The Secretary shall, at least once every 3 years,
invite the Governor of each State to review and, if necessary,
revise the energy conservation plan of such State submitted
under subsection (b) or (e). Such reviews should consider the
energy conservation plans of other States within the region,
and identify opportunities and actions carried out in pursuit
of common energy conservation goals.''.
(b) State Energy Efficiency Goals.--Section 364 of the
Energy Policy and Conservation Act (42 U.S.C. 6324) is amended
to read as follows:
``STATE ENERGY EFFICIENCY GOALS
``Sec. 364. Each State energy conservation plan with
respect to which assistance is made available under this part
on or after the date of enactment of the Energy Policy Act of
2005 shall contain a goal, consisting of an improvement of 25
percent or more in the efficiency of use of energy in the State
concerned in calendar year 2012 as compared to calendar year
1990, and may contain interim goals.''.
(c) Authorization of Appropriations.--Section 365(f) of the
Energy Policy and Conservation Act (42 U.S.C. 6325(f)) is
amended by striking ``for fiscal years 1999 through 2003 such
sums as may be necessary'' and inserting ``$100,000,000 for
each of the fiscal years 2006 and 2007 and $125,000,000 for
fiscal year 2008''.
SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.
(a) Definitions.--In this section:
(1) Eligible state.--The term ``eligible State''
means a State that meets the requirements of subsection
(b).
(2) Energy star program.--The term ``Energy Star
program'' means the program established by section 324A
of the Energy Policy and Conservation Act.
(3) Residential energy star product.--The term
``residential Energy Star product'' means a product for
a residence that is rated for energy efficiency under
the Energy Star program.
(4) State energy office.--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) State program.--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) In general.--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) Minimum allocations.--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 the Secretary to carry out this section
$50,000,000 for each of the fiscal years 2006 through 2010.
SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS.
(a) Grants.--The Secretary 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 constructedin
compliance with standards prescribed in the most recent version of the
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 $30,000,000 for each of fiscal years 2006 through
2010. Not more than 10 percent of appropriated funds shall be
used for administration.
SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.
(a) Grants.--The Secretary 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.), that 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 $20,000,000 for each of fiscal years 2006 through
2008.
SEC. 127. STATE TECHNOLOGIES ADVANCEMENT COLLABORATIVE.
(a) In General.--The Secretary, in cooperation with the
States, shall establish a cooperative program for research,
development, demonstration, and deployment of technologies in
which there is a common Federal and State energy efficiency,
renewable energy, and fossil energy interest, to be known as
the ``State Technologies Advancement Collaborative'' (referred
to in this section as the ``Collaborative'').
(b) Duties.--The Collaborative shall--
(1) leverage Federal and State funding through
cost-shared activity;
(2) reduce redundancies in Federal and State
funding; and
(3) create multistate projects to be awarded
through a competitive process.
(c) Administration.--The Collaborative shall be
administered through an agreement between the Department and
appropriate State-based organizations.
(d) Funding Sources.--Funding for the Collaborative may be
provided from--
(1) amounts specifically appropriated for the
Collaborative; or
(2) amounts that may be allocated from other
appropriations without changing the purpose for which
the amounts are appropriated.
(e) Authorization of Appropriations.--There are authorized
to carry out this section such sums as are necessary for each
of fiscal years 2006 through 2010.
SEC. 128. STATE BUILDING ENERGY EFFICIENCY CODES INCENTIVES.
Section 304(e) of the Energy Conservation and Production
Act (42 U.S.C. 6833(e)) is amended--
(1) in paragraph (1), by inserting before the
period at the end of the first sentence the following:
``, including increasing and verifying compliance with
such codes''; and
(2) by striking paragraph (2) and inserting the
following:
``(2) Additional funding shall be provided under
this subsection for implementation of a plan to achieve
and document at least a 90 percent rate of compliance
with residential and commercial building energy
efficiency codes, based on energy performance--
``(A) to a State that has adopted and is
implementing, on a statewide basis--
``(i) a residential building energy
efficiency code that meets or exceeds
the requirements of the 2004
International Energy Conservation Code,
or any succeeding version of that code
that has received an affirmative
determination from the Secretary under
subsection (a)(5)(A); and
``(ii) a commercial building energy
efficiency code that meets or exceeds
the requirements of the ASHRAE Standard
90.1-2004, or any succeeding version of
that standard that has received an
affirmative determination from the
Secretary under subsection (b)(2)(A);
or
``(B) in a State in which there is no
statewide energy code either for residential
buildings or for commercial buildings, to a
local government that has adopted and is
implementing residential and commercial
building energy efficiency codes, as described
in subparagraph (A).
``(3) Of the amounts made available under this subsection,
the Secretary may use $500,000 for each fiscal year to train
State and local officials to implement codes described in
paragraph (2).
``(4)(A) There are authorized to be appropriated to carry
out this subsection--
``(i) $25,000,000 for each of fiscal years 2006
through 2010; and
``(ii) such sums as are necessary for fiscal year
2011 and each fiscal year thereafter.
``(iii) Funding provided to States under paragraph
(2) for each fiscal year shall not exceed \1/2\ of the
excess of funding under this subsection over $5,000,000
for the fiscal year.''.
Subtitle C--Energy Efficient Products
SEC. 131. ENERGY STAR PROGRAM.
(a) In General.--The Energy Policy and Conservation Act is
amended by inserting after section 324 (42 U.S.C. 6294) the
following:
``ENERGY STAR PROGRAM
``Sec. 324A. (a) In General.--There is established within
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
conservation standards.
``(b) Division of Responsibilities.--Responsibilities under
the program shall be divided between the Department of Energy
and the Environmental Protection Agency in accordance with the
terms of applicable agreements between those agencies.
``(c) Duties.--The Administrator and the Secretary shall--
``(1) promote Energy Star compliant technologies as
the preferred technologies in the marketplace for--
``(A) achieving energy efficiency; and
``(B) reducing pollution;
``(2) work to enhance public awareness of the
Energy Star label, including by providing special
outreach to small businesses;
``(3) preserve the integrity of the Energy Star
label;
``(4) regularly update Energy Star product criteria
for product categories;
``(5) solicit comments from interested parties
prior to establishing or revising an Energy Star
product category, specification, or criterion (or prior
to effective dates for any such product category,
specification, or criterion);
``(6) on adoption of a new or revised product
category, specification, or criterion, provide
reasonable notice to interested parties of any changes
(including effective dates) in product categories,
specifications, or criteria, along with--
``(A) an explanation of the changes; and
``(B) as appropriate, responses to comments
submitted by interested parties; and
``(7) provide appropriate lead time (which shall be
270 days, unless the Agency or Department specifies
otherwise) prior to the applicable effective date for a
new or a significant revision to a product category,
specification, or criterion, taking into account the
timing requirements of the manufacturing, product
marketing, and distribution process for the specific
product addressed.
``(d) Deadlines.--The Secretary shall establish new
qualifying levels--
``(1) not later than January 1, 2006, for clothes
washers and dishwashers, effective beginning January 1,
2007; and
``(2) not later than January 1, 2008, for clothes
washers, effective beginning January 1, 2010.''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy and Conservation Act (42 U.S.C. prec. 6201)
is amended by inserting after the item relating to section 324
the following:
``Sec. 324A. Energy Star program.''.
SEC. 132.. 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.--(1) To ensure that installed air
conditioning and heating systems operate at maximum rated
efficiency levels, the Secretary shall, not later than 180 days
after the date of enactment of this subsection, carry out a
program to educate homeowners and small business owners
concerning the energy savings from properly conducted
maintenance of air conditioning, heating, and ventilating
systems.
``(2) The Secretary shall carry out the program under
paragraph (1), on a cost-shared basis, in cooperation with the
Administrator of the Environmental Protection Agency and any
other entities that the Secretary determines to be appropriate,
including industry trade associations, industry members, and
energy efficiency organizations.
``(d) Small Business Education and Assistance.--(1) The
Administrator of the Small Business Administration, in
consultation with the Secretary and the Administrator of the
Environmental Protection Agency, shall develop and coordinate a
Government-wide program, building on the Energy Star for Small
Business Program, to assist small businesses in--
``(A) becoming more energy efficient;
``(B) understanding the cost savings from improved
energy efficiency;
``(C) understanding and accessing Federal
procurement opportunities with regard to Energy Star
technologies and products; and
``(D) identifying financing options for energy
efficiency upgrades.
``(2) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall--
``(A) make program information available to small
business concerns directly through the district offices
and resource partners of the Small Business
Administration, including small business development
centers, women's business centers, and the Service
Corps of Retired Executives (SCORE), and through other
Federal agencies, including the Federal Emergency
Management Agency and the Department of Agriculture;
and
``(B) coordinate assistance with the Secretary of
Commerce for manufacturing-related efforts, including
the Manufacturing Extension Partnership Program.
``(3) The Secretary, on a cost shared basis in cooperation
with the Administrator of the Environmental Protection Agency,
shall provide to the Small Business Administration all
advertising, marketing, and other written materials necessary
for the dissemination of information under paragraph (2).
``(4) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration, as part of the outreach to small business
concerns under the Energy Star Program for Small Business
Program, may enter into cooperative agreements with qualified
resources partners (including the National Center for
Appropriate Technology) to establish, maintain, and promote a
Small Business Energy Clearinghouse (in this subsection
referred to as the `Clearinghouse').
``(5) The Secretary, the Administrator of the Environmental
Protection Agency, and the Administrator of the Small Business
Administration shall ensure that the Clearinghouse provides a
centralized resource where small business concerns may access,
telephonically and electronically, technical information and
advice to help increase energy efficiency and reduce energy
costs.
``(6) There are authorized to be appropriated such sums as
are necessary to carry out this subsection, to remain available
until expended.''.
SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall convene an
organizational conference for the purpose of establishing an
ongoing, self-sustaining national public energy education
program.
(b) Participants.--The Secretary shall invite to
participate in the conference individuals and entities
representing all aspects of energy production and distribution,
including--
(1) industrial firms;
(2) professional societies;
(3) educational organizations;
(4) trade associations; and
(5) governmental agencies.
(c) Purpose, Scope, and Structure.--
(1) Purpose.--The purpose of the conference shall
be to establish an ongoing, self-sustaining national
public energy education program to examine and
recognize interrelationships between energy sources in
all forms, including--
(A) conservation and energy efficiency;
(B) the role of energy use in the economy;
and
(C) the impact of energy use on the
environment.
(2) Scope and structure.--Taking into consideration
the purpose described in paragraph (1), the
participants in the conference invited under subsection
(b) shall design the scope and structure of the program
described in subsection (a).
(d) Technical Assistance.--The Secretary shall provide
technical assistance and other guidance necessary to carry out
the program described in subsection (a).
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INITIATIVE.
(a) In General.--The Secretary shall carry out a
comprehensive national program, including advertising and media
awareness, to inform consumers about--
(1) the need to reduce energy consumption during
the 4-year period beginning on the date of enactment of
this Act;
(2) the benefits to consumers of reducing
consumption of electricity, natural gas, and petroleum,
particularly during peak use periods;
(3) the importance of low energy costs to economic
growth and preserving manufacturing jobs in the United
States; and
(4) practical, cost-effective measures that
consumers can take to reduce consumption of
electricity, natural gas, and gasoline, including--
(A) maintaining and repairing heating and
cooling ducts and equipment;
(B) weatherizing homes and buildings;
(C) purchasing energy efficient products;
and
(D) proper tire maintenance.
(b) Cooperation.--The program carried out under subsection
(a) shall--
(1) include collaborative efforts with State and
local government officials and the private sector; and
(2) incorporate, to the maximum extent practicable,
successful State and local public education programs.
(c) Report.--Not later than July 1, 2009, the Secretary
shall submit to Congress a report describing the effectiveness
of the program under this section.
(d) Termination of Authority.--The program carried out
under this section shall terminate on December 31, 2010.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $90,000,000 for
each of fiscal years 2006 through 2010.
SEC. 135. 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 paragraph (29)--
(A) in subparagraph (D)--
(i) in clause (i), by striking
``C78.1-1978(R1984)'' and inserting
``C78.81-2003 (Data Sheet 7881-ANSI-
1010-1)'';
(ii) in clause (ii), by striking
``C78.1-1978(R1984)'' and inserting
``C78.81-2003 (Data Sheet 7881-ANSI-
3007-1)''; and
(iii) in clause (iii), by striking
``C78.1-1978(R1984)'' and inserting
``C78.81-2003 (Data Sheet 7881-ANSI-
1019-1)''; and
(B) by adding at the end the following:
``(M) The term `F34T12 lamp' (also known as a
`F40T12/ES lamp') means a nominal 34 watt tubular
fluorescent lamp that is 48 inches in length and 1\1/2\
inches in diameter, and conforms to ANSI standard
C78.81-2003 (Data Sheet 7881-ANSI-1006-1).
``(N) The term `F96T12/ES lamp' means a nominal 60
watt tubular fluorescent lamp that is 96 inches in
length and 1\1/2\ inches in diameter, and conforms to
ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-3006-
1).
``(O) The term `F96T12HO/ES lamp' means a nominal
95 watt tubular fluorescent lamp that is 96 inches in
length and 1\1/2\ inches in diameter, and conforms to
ANSI standard C78.81-2003 (Data Sheet 7881-ANSI-1017-
1).
``(P) The term `replacement ballast' means a
ballast that--
``(i) is designed for use to replace an
existing ballast in a previously installed
luminaire;
``(ii) is marked `FOR REPLACEMENT USE
ONLY';
``(iii) is shipped by the manufacturer in
packages containing not more than 10 ballasts;
and
``(iv) has output leads that when fully
extended are a total length that is less than
the length of the lamp with which the ballast
is intended to be operated.'';
(2) in paragraph (30)(S)--
(A) by inserting ``(i)'' before ``The
term''; and
(B) by adding at the end the following:
``(ii) The term `medium base compact
fluorescent lamp' does not include--
``(I) any lamp that is--
``(aa) specifically
designed to be used for special
purpose applications; and
``(bb) unlikely to be used
in general purpose
applications, such as the
applications described in
subparagraph (D); or
``(II) any lamp not described in
subparagraph (D) that is excluded by
the Secretary, by rule, because the
lamp is--
``(aa) designed for special
applications; and
``(bb) unlikely to be used
in general purpose
applications.''; and
(3) by adding at the end the following:
``(32) The term `battery charger' means a device
that charges batteries for consumer products, including
battery chargers embedded in other consumer products.
``(33)(A) The term `commercial prerinse spray
valve' means a handheld device designed and marketed
for use with commercial dishwashing and ware washing
equipment that sprays water on dishes, flatware, and
other food service items for the purpose of removing
food residue before cleaning the items.
``(B) The Secretary may modify the definition of
`commercial prerinse spray valve' by rule--
``(i) to include products--
``(I) that are extensively used in
conjunction with commercial dishwashing
and ware washing equipment;
``(II) the application of standards
to which would result in significant
energy savings; and
``(III) the application of
standards to which would meet the
criteria specified in section
325(o)(4); and
``(ii) to exclude products--
``(I) that are used for special
food service applications;
``(II) that are unlikely to be
widely used in conjunction with
commercial dishwashing and ware washing
equipment; and
``(III) the application of
standards to which would not result in
significant energy savings.
``(34) The term `dehumidifier' means a self-
contained, electrically operated, and mechanically
encased assembly consisting of--
``(A) a refrigerated surface (evaporator)
that condenses moisture from the atmosphere;
``(B) a refrigerating system, including an
electric motor;
``(C) an air-circulating fan; and
``(D) means for collecting or disposing of
the condensate.
``(35)(A) 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) a transformer with multiple voltage
taps, the highest of which equals at least 20
percent more than the lowest;
``(ii) a transformer that is designed to be
used in a special purpose application and is
unlikely to be used in general purpose
applications, such as a drive transformer,
rectifier transformer, auto-transformer,
Uninterruptible Power System transformer,
impedance transformer, regulating transformer,
sealed and nonventilating transformer, machine
tool transformer, welding transformer,
grounding transformer, or testing transformer;
or
``(iii) any transformer not listed in
clause (ii) that is excluded by the Secretary
by rule because--
``(I) the transformer is designed
for a special application;
``(II) the transformer is unlikely
to be used in general purpose
applications; and
``(III) the application of
standards to the transformer would not
result in significant energy savings.
``(36) The term `external power supply' means an
external power supply circuit that is used to convert
household electric current into DC current or lower-
voltage AC current to operate a consumer product.
``(37) 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--
``(i) illuminates the legend `EXIT'
and any directional indicators; and
``(ii) provides contrast between
the legend, any directional indicators,
and the background.
``(38) The term `low-voltage dry-type distribution
transformer' means a distribution transformer that--
``(A) has an input voltage of 600 volts or
less;
``(B) is air-cooled; and
``(C) does not use oil as a coolant.
``(39) The term `pedestrian module' means a light
signal used to convey movement information to
pedestrians.
``(40) The term `refrigerated bottled or canned
beverage vending machine' means a commercial
refrigerator that cools bottled or canned beverages and
dispenses the bottled or canned beverages on payment.
``(41) The term `standby mode' means the lowest
power consumption mode, as established on an individual
product basis by the Secretary, that--
``(A) cannot be switched off or influenced
by the user; and
``(B) may persist for an indefinite time
when an appliance is--
``(i) connected to the main
electricity supply; and
``(ii) used in accordance with the
instructions of the manufacturer.
``(42) The term `torchiere' means a portable
electric lamp with a reflector bowl that directs light
upward to give indirect illumination.
``(43) The term `traffic signal module' means a
standard 8-inch (200mm) or 12-inch (300mm) traffic
signal indication that--
``(A) consists of a light source, a lens,
and all other parts necessary for operation;
and
``(B) communicates movement messages to
drivers through red, amber, and green colors.
``(44) The term `transformer' means a device
consisting of 2 or more coils of insulated wire that
transfers alternating current by electromagnetic
induction from 1 coil to another to change the original
voltage or current value.
``(45)(A) The term `unit heater' means a self-
contained fan-type heater designed to be installed
within the heated space.
``(B) The term `unit heater' does not include a
warm air furnace.
``(46)(A) The term `high intensity discharge lamp'
means an electric-discharge lamp in which--
``(i) the light-producing arc is stabilized
by bulb wall temperature; and
``(ii) the arc tube has a bulb wall loading
in excess of 3 Watts/cm2.
``(B) The term `high intensity discharge lamp'
includes mercury vapor, metal halide, and high-pressure
sodium lamps described in subparagraph (A).
``(47)(A) The term `mercury vapor lamp' means a
high intensity discharge lamp in which the major
portion of the light is produced by radiation from
mercury operating at a partial pressure in excess of
100,000 Pa (approximately 1 atm).
``(B) The term `mercury vapor lamp' includes clear,
phosphor-coated, and self-ballasted lamps described in
subparagraph (A).
``(48) The term `mercury vapor lamp ballast' means
a device that is designed and marketed to start and
operate mercury vapor lamps by providing the necessary
voltage and current.
``(49) The term `ceiling fan' means a nonportable
device that is suspended from a ceiling for circulating
air via the rotation of fan blades.
``(50) The term `ceiling fan light kit' means
equipment designed to provide light from a ceiling fan
that can be--
``(A) integral, such that the equipment is
attached to the ceiling fan prior to the time
of retail sale; or
``(B) attachable, such that at the time of
retail sale the equipment is not physically
attached to the ceiling fan, but may be
included inside the ceiling fan at the time of
sale or sold separately for subsequent
attachment to the fan.
``(51) The term `medium screw base' means an Edison
screw base identified with the prefix E-26 in the
`American National Standard for Electric Lamp Bases',
ANSI_IEC C81.61--2003, published by the American
National Standards Institute.''.
(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)(A) Test procedures for distribution transformers and
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).
``(B) The Secretary may review and revise the test
procedures established under subparagraph (A).
``(C) For purposes of section 346(a), the test procedures
established under subparagraph (A) shall be considered to be
the testing requirements prescribed by the Secretary under
section 346(a)(1) for distribution transformers for which the
Secretary makes a determination that energy conservation
standards would--
``(i) be technologically feasible and economically
justified; and
``(ii) result in significant energy savings.
``(11) Test procedures for traffic signal modules and
pedestrian 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)(A) Test procedures for medium base compact
fluorescent lamps shall be based on the test methods forcompact
fluorescent lamps used under the August 9, 2001, version of the Energy
Star program of the Environmental Protection Agency and the Department
of Energy.
``(B) Except as provided in subparagraph (C), medium base
compact fluorescent lamps shall meet all test requirements for
regulated parameters of section 325(cc).
``(C) Notwithstanding subparagraph (B), if manufacturers
document engineering predictions and analysis that support
expected attainment of lumen maintenance at 40 percent rated
life and lamp lifetime, medium base compact fluorescent lamps
may be marketed before completion of the testing of lamp life
and lumen maintenance at 40 percent of rated life.
``(13) Test procedures for dehumidifiers shall be based on
the test criteria used under the Energy Star Program
Requirements for Dehumidifiers developed by the Environmental
Protection Agency, as in effect on the date of enactment of
this paragraph unless revised by the Secretary pursuant to this
section.
``(14) The test procedure for measuring flow rate for
commercial prerinse spray valves shall be based on American
Society for Testing and Materials Standard F2324, entitled
`Standard Test Method for Pre-Rinse Spray Valves.'
``(15) The test procedure for refrigerated bottled or
canned beverage vending machines shall be based on American
National Standards Institute/American Society of Heating,
Refrigerating and Air-Conditioning Engineers Standard 32.1-
2004, entitled `Methods of Testing for Rating Vending Machines
for Bottled, Canned or Other Sealed Beverages'.
``(16)(A)(i) Test procedures for ceiling fans shall be
based on the `Energy Star Testing Facility Guidance Manual:
Building a Testing Facility and Performing the Solid State Test
Method for ENERGY STAR Qualified Ceiling Fans, Version 1.1'
published by the Environmental Protection Agency.
``(ii) Test procedures for ceiling fan light kits shall be
based on the test procedures referenced in the Energy Star
specifications for Residential Light Fixtures and Compact
Fluorescent Light Bulbs, as in effect on the date of enactment
of this paragraph.
``(B) The Secretary may review and revise the test
procedures established under subparagraph (A).''; and
(2) by adding at the end the following:
``(f) Additional Consumer and Commercial Products.--(1) Not
later than 2 years after the date of enactment of this
subsection, the Secretary shall prescribe testing requirements
for refrigerated bottled or canned beverage vending machines.
``(2) To the maximum extent practicable, the testing
requirements prescribed under paragraph (1) shall be based on
existing test procedures used in industry.''.
(c) Standard Setting Authority.--Section 325 of the Energy
Policy and Conservation Act (42 U.S.C. 6295) is amended--
(1) in subsection (f)(3), by adding at the end the
following:
``(D) Notwithstanding any other provision of this Act, if
the requirements of subsection (o) are met, the Secretary may
consider and prescribe energy conservation standards or energy
use standards for electricity used for purposes of circulating
air through duct work.'';
(2) in subsection (g)--
(A) in paragraph (6)(B), by inserting ``and
labeled'' after ``designed''; and
(B) by adding at the end the following:
``(8)(A) Each fluorescent lamp ballast (other than
replacement ballasts or ballasts described in subparagraph
(C))--
``(i)(I) manufactured on or after July 1, 2009;
``(II) sold by the manufacturer on or after October
1, 2009; or
``(III) incorporated into a luminaire by a
luminaire manufacturer on or after July 1, 2010; and
``(ii) designed--
``(I) to operate at nominal input voltages
of 120 or 277 volts;
``(II) to operate with an input current
frequency of 60 Hertz; and
``(III) for use in connection with F34T12
lamps, F96T12/ES lamps, or F96T12HO/ES lamps;
shall have a power factor of 0.90 or greater and shall
have a ballast efficacy factor of not less than the
following:
Ballast Total
``Application for operation of input nominal Ballast efficacy factor
voltage lamp watts
One F34T12 lamp.................................................. 120/277 34 2.61
Two F34T12 lamps................................................. 120/277 68 1.35
Two F96 T12/ES lamps............................................. 120/277 120 0.77
Two F96 T12HO/ES lamps........................................... 120/277 190 0.42
``(B) The standards described in subparagraph (A) shall
apply to all ballasts covered by subparagraph (A)(ii) that are
manufactured on or after July 1, 2010, or sold by the
manufacturer on or after October 1, 2010.
``(C) the standards described in subparagraph (A) do not
apply to--
``(i) a ballast that is designed for dimming to 50
percent or less of the maximum output of the ballast;
``(ii) a ballast that is designed for use with 2
F96T12HO lamps at ambient temperatures of 20 +F or less
and for use in an outdoor sign; or
``(iii) a ballast that has a power factor of less
than 0.90 and is designed and labeled for use only in
residential applications.'';
(3) in subsection (o), by adding at the end the
following:
``(5) The Secretary may set more than 1 energy conservation
standard for products that serve more than 1 major function by
setting 1 energy conservation standard for each major
function.''; and
(4) by adding at the end the following:
``(u) Battery Charger and External Power Supply Electric
Energy Consumption.--(1)(A) Not later than 18 months after the
date of enactment of this subsection, the Secretary shall,
after providing notice and an opportunity for comment,
prescribe, by rule, definitions and test procedures for the
power use of battery chargers and external power supplies.
``(B) In establishing the test procedures under
subparagraph (A), the Secretary shall--
``(i) consider existing definitions and test
procedures used for measuring energy consumption in
standby mode and other modes; and
``(ii) assess the current and projected future
market for battery chargers and external power
supplies.
``(C) The assessment under subparagraph (B)(ii) shall
include--
``(i) estimates of the significance of potential
energy savings from technical improvements to battery
chargers and external power supplies; and
``(ii) suggested product classes for energy
conservation standards.
``(D) Not later than 18 months after the date of enactment
of this subsection, the Secretary shall hold a scoping workshop
to discuss and receive comments on plans for developing energy
conservation standards for energy use for battery chargers and
external power supplies.
``(E)(i) Not later than 3 years after the date of enactment
of this subsection, the Secretary shall issue a final rule that
determines whether energy conservation standards shall be
issued for battery chargers and external power supplies or
classes of battery chargers and external power supplies.
``(ii) For each product class, any energy conservation
standards issued under clause (i) shall be set at the lowest
level of energy use that--
``(I) meets the criteria and procedures of
subsections (o), (p), (q), (r), (s), and (t); and
``(II) would result in significant overall annual
energy savings, considering standby mode and other
operating modes.
``(2) In determining under section 323 whether test
procedures and energy conservation standards under this section
should be revised with respect to covered products that are
major sources of standby mode energy consumption, the Secretary
shall consider whether to incorporate standby mode into the
test procedures and energy conservation standards, taking into
account standby mode power consumption compared to overall
product energy consumption.
``(3) The Secretary shall not propose an energy
conservation standard under this section, unless the Secretary
has issued applicable test procedures for each product under
section 323.
``(4) Any energy conservation standard issued under this
subsection shall be applicable to products manufactured or
imported beginning on the date that is 3 years after the date
of issuance.
``(5) The Secretary and the Administrator shall collaborate
and develop programs (including programs under section 324A and
other voluntary industry agreements or codes of conduct) that
are designed to reduce standby mode energy use.
``(v) Ceiling Fans and Refrigerated Beverage Vending
Machines.--(1) Not later than 1 year after the date of
enactment of this subsection, the Secretary shall prescribe, by
rule, test procedures and energy conservation standards for
ceiling fans and ceiling fan light kits. If the Secretary sets
such standards, the Secretary shall consider exempting or
setting different standards for certain product classes for
which the primary standards are not technically feasible or
economically justified, and establishing separate or exempted
product classes for highly decorative fans for which air
movement performance is a secondary design feature.
``(2) Not later than 4 years after the date of enactment of
this subsection, the Secretary shall prescribe, by rule, energy
conservation standards for refrigerated bottle or canned
beverage vending machines.
``(3) In establishing energy conservation standards under
this subsection, the Secretary shall use the criteria and
procedures prescribed under subsections (o) and (p).
``(4) Any energy conservation standard prescribed under
this subsection shall apply to products manufactured 3 years
after the date of publication of a final rule establishing the
energy conservation standard.
``(w) Illuminated Exit Signs.--An illuminated exit sign
manufactured on or after January 1, 2006, shall meet the
version 2.0 Energy Star Program performance requirements for
illuminated exit signs prescribed by the Environmental
Protection Agency.
``(x) Torchieres.--A torchiere manufactured on or after
January 1, 2006--
``(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) Low Voltage Dry-Type Distribution Transformers.--The
efficiency of a low voltage dry-type distribution transformer
manufactured on or after January 1, 2007, 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 and Pedestrian Modules.--Any
traffic signal module or pedestrian module manufactured on or
after January 1, 2006, shall--
``(1) 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 subsection; and
``(2) be installed with compatible, electrically
connected signal control interface devices and conflict
monitoring systems.
``(aa) Unit Heaters.--A unit heater manufactured on or
after the date that is 3 years after the date of enactment of
this subsection shall--
``(1) be equipped with an intermittent ignition
device; and
``(2) have power venting or an automatic flue
damper.
``(bb) Medium Base Compact Fluorescent Lamps.--(1) A bare
lamp and covered lamp (no reflector) medium base compact
fluorescent lamp manufactured on or after January 1, 2006,
shall meet the following requirements prescribed by the August
9, 2001, version of the Energy Star Program Requirements for
Compact Fluorescent Lamps, Energy Star Eligibility Criteria,
Energy-Efficiency Specification issued by the Environmental
Protection Agency and Department of Energy:
``(A) Minimum initial efficacy.
``(B) Lumen maintenance at 1000 hours.
``(C) Lumen maintenance at 40 percent of rated
life.
``(D) Rapid cycle stress test.
``(E) Lamp life.
``(2) 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 Compact Fluorescent Lamps.
``(3) The Secretary may, by rule--
``(A) revise the requirements established under
paragraph (2); or
``(B) establish other requirements, after
considering energy savings, cost effectiveness, and
consumer satisfaction.
``(cc) Dehumidifiers.--(1) Dehumidifiers manufactured on or
after October 1, 2007, shall have an Energy Factor that meets
or exceeds the following values:
``Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
25.00 or less............................................. 1.00
25.01 - 35.00............................................. 1.20
35.01 - 54.00............................................. 1.30
54.01 - 74.99............................................. 1.50
75.00 or more............................................. 2.25.
``(2)(A) Not later than October 1, 2009, the Secretary
shall publish a final rule in accordance with subsections (o)
and (p), to determine whether the energy conservation standards
established under paragraph (1) should be amended.
``(B) The final rule published under subparagraph (A)
shall--
``(i) contain any amendment by the Secretary; and
``(ii) provide that the amendment applies to
products manufactured on or after October 1, 2012.
``(C) If the Secretary does not publish an amendment that
takes effect by October 1, 2012, dehumidifiers manufactured on
or after October 1, 2012, shall have an Energy Factor that
meets or exceeds the following values:
``Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh)
25.00 or less............................................. 1.20
25.01 - 35.00............................................. 1.30
35.01 - 45.00............................................. 1.40
45.01 - 54.00............................................. 1.50
54.01 - 74.99............................................. 1.60
75.00 or more............................................. 2.5.
``(dd) Commercial Prerinse Spray Valves.--Commercial
prerinse spray valves manufactured on or after January 1, 2006,
shall have a flow rate of not more than 1.6 gallons per minute.
``(ee) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp
ballasts shall not be manufactured or imported after January 1,
2008.
``(ff) Ceiling Fans and Ceiling Fan Light Kits.--(1)(A) All
ceiling fans manufactured on or after January 1, 2007, shall
have the following features:
``(i) Fan speed controls separate from any lighting
controls.
``(ii) Adjustable speed controls (either more than
1 speed or variable speed).
``(iii) Adjustable speed controls (either more than
1 speed or variable speed).
``(iv) The capability of reversible fan action,
except for--
``(I) fans sold for industrial
applications;
``(II) outdoor applications; and
``(III) cases in which safety standards
would be violated by the use of the reversible
mode.
``(B) The Secretary may define the exceptions described in
clause (iv) in greater detail, but shall not substantively
expand the exceptions
``(2)(A) Ceiling fan light kits with medium screw base
sockets manufactured on or after January 1, 2007, shall be
packaged with screw-based lamps to fill all screw base sockets.
``(B) The screw-based lamps required under subparagraph (A)
shall--
``(i) meet the Energy Star Program Requirements for
Compact Fluorescent Lamps, version 3.0, issued by the
Department of Energy; or
``(ii) use light sources other than compact
fluorescent lamps that have lumens per watt performance
at least equivalent to comparably configured compact
fluorescent lamps meeting the Energy Star Program
Requirements described in clause (i).
``(3) Ceiling fan light kits with pin-based sockets for
fluorescent lamps manufactured on or after January 1, 2007
shall--
``(A) meet the Energy Star Program Requirements for
Residential Light Fixtures version 4.0 issued by the
Environmental Protection Agency; and
``(B) be packaged with lamps to fill all sockets.
``(4)(A) By January 1, 2007, the Secretary shall consider
and issue requirements for any ceiling fan lighting kits other
than those covered in paragraphs (2) and (3), including
candelabra screw base sockets.
``(B) The requirements issued under subparagraph (A) shall
be effective for products manufactured 2 years after the date
of the final rule.
``(C) If the Secretary fails to issue a final rule by the
date specified in subparagraph (B), any type of ceiling fan
lighting kit described in subparagraph (A) that is manufactured
after January 1, 2009--
``(i) shall not be capable of operating with lamps
that total more than 190 watts; and
``(ii) shall include the lamps described in clause
(i) in the ceiling fan lighting kits.
``(5)(A) After January 1, 2010, the Secretary may consider,
and issue, if the requirements of subsections (o) and (p) are
met, amended energy efficiency standards for ceiling fan light
kits.
``(B) Any amended standards issued under subparagraph (A)
shall apply to products manufactured not earlier than 2 years
after the date of publication of the final rule establishing
the amended standard.
``(6)(A) Notwithstanding any other provision of this Act,
the Secretary may consider, and issue, if the requirements of
subsections (o) and (p) are met, energy efficiency or energy
use standards for electricity used by ceiling fans to circulate
air in a room.
``(B) In issuing the standards under subparagraph (A), the
Secretary shall consider--
``(C) exempting, or setting different standards for,
certain product classes for which the primary standards are not
technically feasible or economically justified; and
``(D) establishing separate exempted product classes for
highly decorative fans for which air movement performance is a
secondary design feature.
``(7) Section 327 shall apply to the products covered in
paragraphs (1) through (4) beginning on the date of enactment
of this subsection, except that any State or local labeling
requirement for ceiling fans prescribed or enacted before the
date of enactment of this subsection shall not be preempted
until the labeling requirements applicable to ceiling fans
established under section 327 take effect.
``(gg) Application Date.--Section 327 applies--
``(1) to products for which energy conservation
standards are to be established under subsection (l),
(u), or (v) beginning on the date on which a final rule
is issued by the Secretary, except that any State or
local standard prescribed or enacted for the product
before the date on which the final rule is issued shall
not be preempted until the energy conservation standard
established under subsection (l), (u), or (v) for the
product takes effect; and
``(2) to products for which energy conservation
standards are established under subsections (w) through
(ff) on the date of enactment of those subsections,
except that any State or local standard prescribed or
enacted before the date of enactment of those
subsections shall not be preempted until the energy
conservation standards established under subsections
(w) through (ff) take effect.''.
(d) General Rule of Preemption.--Section 327(c) of the
Energy Policy and Conservation Act (42 U.S.C. 6297(c)) is
amended--
(1) in paragraph (5), by striking ``or'' at the
end;
(2) in paragraph (6), by striking the period at the
end and inserting ``; or''; and
(3) by adding at the end the following:
``(7)(A) is a regulation concerning standards for
commercial prerinse spray valves adopted by
theCalifornia Energy Commission before January 1, 2005; or
``(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations with changes in American Society for
Testing and Materials Standard F2324;
``(8)(A) is a regulation concerning standards for
pedestrian modules adopted by the California Energy
Commission before January 1, 2005; or
``(B) is an amendment to a regulation described in
subparagraph (A) that was developed to align California
regulations to changes in the Institute for
Transportation Engineers standards, entitled
`Performance Specification: Pedestrian Traffic Control
Signal Indications'.''.
SEC. 136. ENERGY CONSERVATION STANDARDS FOR COMMERCIAL EQUIPMENT.
(a) Definitions.--Section 340 of the Energy Policy and
Conservation Act (42 U.S.C. 6311) is amended--
(1) in paragraph (1)--
(A) by redesignating subparagraphs (D)
through (G) as subparagraphs (H) through (K),
respectively; and
(B) by inserting after subparagraph (C) the
following:
``(D) Very large commercial package air
conditioning and heating equipment.
``(E) Commercial refrigerators, freezers,
and refrigerator-freezers.
``(F) Automatic commercial ice makers.
``(G) Commercial clothes washers.'';
(2) in paragraph (2)(B), by striking ``small and
large commercial package air conditioning and heating
equipment'' and inserting ``commercial package air
conditioning and heating equipment, commercial
refrigerators, freezers, and refrigerator-freezers,
automatic commercial ice makers, commercial clothes
washers'';
(3) by striking paragraphs (8) and (9) and
inserting the following:
``(8)(A) The term `commercial package air
conditioning and heating equipment' means air-cooled,
water-cooled, evaporatively-cooled, or water source
(not including ground water source) electrically
operated, unitary central air conditioners and central
air conditioning heat pumps for commercial application.
``(B) The term `small commercial package air
conditioning and heating equipment' means commercial
package air conditioning and heating equipment that is
rated below 135,000 Btu per hour (cooling capacity).
``(C) The term `large commercial package air
conditioning and heating equipment' means commercial
package air conditioning and heating equipment that is
rated--
``(i) at or above 135,000 Btu per hour; and
``(ii) below 240,000 Btu per hour (cooling
capacity).
``(D) The term `very large commercial package air
conditioning and heating equipment' means commercial
package air conditioning and heating equipment that is
rated--
``(i) at or above 240,000 Btu per hour; and
``(ii) below 760,000 Btu per hour (cooling
capacity).
``(9)(A) The term `commercial refrigerator,
freezer, and refrigerator-freezer' means refrigeration
equipment that--
``(i) is not a consumer product (as defined
in section 321);
``(ii) is not designed and marketed
exclusively for medical, scientific, or
research purposes;
``(iii) operates at a chilled, frozen,
combination chilled and frozen, or variable
temperature;
``(iv) displays or stores merchandise and
other perishable materials horizontally,
semivertically, or vertically;
``(v) has transparent or solid doors,
sliding or hinged doors, a combination of
hinged, sliding, transparent, or solid doors,
or no doors;
``(vi) is designed for pull-down
temperature applications or holding temperature
applications; and
``(vii) is connected to a self-contained
condensing unit or to a remote condensing unit.
``(B) The term `holding temperature application'
means a use of commercial refrigeration equipment other
than a pull-down temperature application, except a
blast chiller or freezer.
``(C) The term `integrated average temperature'
means the average temperature of all test package
measurements taken during the test.
``(D) The term `pull-down temperature application'
means a commercial refrigerator with doors that, when
fully loaded with 12 ounce beverage cans at 90 degrees
F, can cool those beverages to an average stable
temperature of 38 degrees F in 12 hours or less.
``(E) The term `remote condensing unit' means a
factory-made assembly of refrigerating components
designed to compress and liquefy a specific refrigerant
that is remotely located from the refrigerated
equipment and consists of 1 or more refrigerant
compressors, refrigerant condensers, condenser fans and
motors, and factory supplied accessories.
``(F) The term `self-contained condensing unit'
means a factory-made assembly of refrigerating
components designed to compress and liquefy a specific
refrigerant that is an integral part of the
refrigerated equipment and consists of 1 or more
refrigerant compressors, refrigerant condensers,
condenser fans and motors, and factory supplied
accessories.''; and
(4) by adding at the end the following:
``(19) The term `automatic commercial ice maker'
means a factory-made assembly (not necessarily shipped
in 1 package) that--
``(A) consists of a condensing unit and
ice-making section operating as an integrated
unit, with means for making and harvesting ice;
and
``(B) may include means for storing ice,
dispensing ice, or storing and dispensing ice.
``(20) The term `commercial clothes washer' means a
soft-mount front-loading or soft-mount top-loading
clothes washer that--
``(A) has a clothes container compartment
that--
``(i) for horizontal-axis clothes
washers, is not more than 3.5 cubic
feet; and
``(ii) for vertical-axis clothes
washers, is not more than 4.0 cubic
feet; and
``(B) is designed for use in--
``(i) applications in which the
occupants of more than 1 household will
be using the clothes washer, such as
multi-family housing common areas and
coin laundries; or
``(ii) other commercial
applications.
``(21) The term `harvest rate' means the amount of
ice (at 32 degrees F) in pounds produced per 24
hours.''.
(b) Standards for Commercial Package Air Conditioning and
Heating Equipment.--Section 342(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6313(a)) is amended--
(1) in the subsection heading, by striking ``Small
and Large'' and inserting ``Small, Large, and Very
Large'';
(2) in paragraph (1), by inserting ``but before
January 1, 2010,'' after ``January 1, 1994,'';
(3) in paragraph (2), by inserting ``but before
January 1, 2010,'' after ``January 1, 1995,''; and
(4) in paragraph (6)--
(A) in subparagraph (A)--
(i) by inserting ``(i)'' after
``(A)'';
(ii) by striking ``the date of
enactment of the Energy Policy Act of
1992'' and inserting ``January 1,
2010'';
(iii) by inserting after ``large
commercial package air conditioning and
heating equipment,'' the following:
``and very large commercial package air
conditioning and heating equipment, or
if ASHRAE/IES Standard 90.1, as in
effect on October 24, 1992, is amended
with respect to any''; and
(iv) by adding at the end the
following:
``(ii) If ASHRAE/IES Standard 90.1 is not amended with
respect to small commercial package air conditioning and
heating equipment, large commercial package air conditioning
and heating equipment, and very large commercial package air
conditioning and heating equipment during the 5-year period
beginning on the effective date of a standard, the Secretary
may initiate a rulemaking to determine whether a more stringent
standard--
``(I) would result in significant additional
conservation of energy; and
``(II) is technologically feasible and economically
justified.''; and
(B) in subparagraph (C)(ii), by inserting
``and very large commercial package air
conditioning and heating equipment'' after
``large commercial package air conditioning and
heating equipment''; and
(5) by adding at the end the following:
``(7) Small commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet
the following standards:
``(A) The minimum energy efficiency ratio of air-
cooled central air conditioners at or above 65,000 Btu
per hour (cooling capacity) and less than 135,000 Btu
per hour (cooling capacity) shall be--
``(i) 11.2 for equipment with no heating or
electric resistance heating; and
``(ii) 11.0 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(B) The minimum energy efficiency ratio of air-
cooled central air conditioner heat pumps at or above
65,000 Btu per hour (cooling capacity) and less than
135,000 Btu per hour (cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or
electric resistance heating; and
``(ii) 10.8 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(C) The minimum coefficient of performance in the
heating mode of air-cooled central air conditioning
heat pumps at or above 65,000 Btu per hour (cooling
capacity) and less than 135,000 Btu per hour (cooling
capacity) shall be 3.3 (at a high temperature rating of
47 degrees F db).
``(8) Large commercial package air conditioning and heating
equipment manufactured on or after January 1, 2010, shall meet
the following standards:
``(A) The minimum energy efficiency ratio of air-
cooled central air conditioners at or above 135,000 Btu
per hour (cooling capacity) and less than 240,000 Btu
per hour (cooling capacity) shall be--
``(i) 11.0 for equipment with no heating or
electric resistance heating; and
``(ii) 10.8 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(B) The minimum energy efficiency ratio of air-
cooled central air conditioner heat pumps at or above
135,000 Btu per hour (cooling capacity) and less than
240,000 Btu per hour (cooling capacity) shall be--
``(i) 10.6 for equipment with no heating or
electric resistance heating; and
``(ii) 10.4 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(C) The minimum coefficient of performance in the
heating mode of air-cooled central air conditioning
heat pumps at or above 135,000 Btu per hour (cooling
capacity) and less than 240,000 Btu per hour (cooling
capacity) shall be 3.2 (at a high temperature rating of
47 degrees F db).
``(9) Very large commercial package air conditioning and
heating equipment manufactured on or after January 1, 2010,
shall meet the following standards:
``(A) The minimum energy efficiency ratio of air-
cooled central air conditioners at or above 240,000 Btu
per hour (cooling capacity) and less than 760,000 Btu
per hour (cooling capacity) shall be--
``(i) 10.0 for equipment with no heating or
electric resistance heating; and
``(ii) 9.8 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(B) The minimum energy efficiency ratio of air-
cooled central air conditioner heat pumps at or above
240,000 Btu per hour (cooling capacity) and less than
760,000 Btu per hour (cooling capacity) shall be--
``(i) 9.5 for equipment with no heating or
electric resistance heating; and
``(ii) 9.3 for equipment with all other
heating system types that are integrated into
the equipment (at a standard rating of 95
degrees F db).
``(C) The minimum coefficient of performance in the
heating mode of air-cooled central air conditioning
heat pumps at or above 240,000 Btu per hour (cooling
capacity) and less than 760,000 Btu per hour (cooling
capacity) shall be 3.2 (at a high temperature rating of
47 degrees F db).''.
(c) Standards for Commercial Refrigerators, Freezers, and
Refrigerator-Freezers.--Section 342 of the Energy Policy and
Conservation Act (42 U.S.C. 6313) is amended by adding at the
end the following:
``(c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
``(A) The term `AV' means the adjusted volume (ft3)
(defined as 1.63 x frozen temperature compartment
volume (ft3) + chilled temperature compartment volume
(ft3)) with compartment volumes measured in accordance
with the Association of Home Appliance Manufacturers
Standard HRF1-1979.
``(B) The term `V' means the chilled or frozen
compartment volume (ft3) (as defined in the Association
of Home Appliance Manufacturers Standard HRF1-1979).
``(C) Other terms have such meanings as may be
established by the Secretary, based on industry-
accepted definitions and practice.
``(2) Each commercial refrigerator, freezer, and
refrigerator-freezer with a self-contained condensing unit
designed for holding temperature applications manufactured on
or after January 1, 2010, shall have a daily energyconsumption
(in kilowatt hours per day) that does not exceed the following:
Refrigerators with solid doors.......... 0.10 V + 2.04
Refrigerators with transparent doors.... 0.12 V + 3.34
Freezers with solid doors............... 0.40 V + 1.38
Freezers with transparent doors......... 0.75 V + 4.10
Refrigerators/freezers with solid doors 0.27 AV - 0.71 or 0.70.
the greater of.
``(3) Each commercial refrigerator with a self-contained
condensing unit designed for pull-down temperature applications
and transparent doors manufactured on or after January 1, 2010,
shall have a daily energy consumption (in kilowatt hours per
day) of not more than 0.126 V + 3.51.
``(4)(A) Not later than January 1, 2009, the Secretary
shall issue, by rule, standard levels for ice-cream freezers,
self-contained commercial refrigerators, freezers, and
refrigerator-freezers without doors, and remote condensing
commercial refrigerators, freezers, and refrigerator-freezers,
with the standard levels effective for equipment manufactured
on or after January 1, 2012.
``(B) The Secretary may issue, by rule, standard levels for
other types of commercial refrigerators, freezers, and
refrigerator-freezers not covered by paragraph (2)(A) with the
standard levels effective for equipment manufactured 3 or more
years after the date on which the final rule is published.
``(5)(A) Not later than January 1, 2013, the Secretary
shall issue a final rule to determine whether the standards
established under this subsection should be amended.
``(B) Not later than 3 years after the effective date of
any amended standards under subparagraph (A) or the publication
of a final rule determining that the standards should not be
amended, the Secretary shall issue a final rule to determine
whether the standards established under this subsection or the
amended standards, as applicable, should be amended.
``(C) If the Secretary issues a final rule under
subparagraph (A) or (B) establishing amended standards, the
final rule shall provide that the amended standards apply to
products manufactured on or after the date that is--
``(i) 3 years after the date on which the final
amended standard is published; or
``(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final rule is published.''.
(d) Standards for Automatic Commercial Ice Makers.--Section
342 of the Energy Policy and Conservation Act (42 U.S.C. 6313)
(as amended by subsection (c)) is amended by adding at the end
the following:
``(d) Automatic Commercial Ice Makers.--(1) Each automatic
commercial ice maker that produces cube type ice with
capacities between 50 and 2500 pounds per 24-hour period when
tested according to the test standard established in section
343(a)(7) and is manufactured on or after January 1, 2010,
shall meet the following standard levels:
----------------------------------------------------------------------------------------------------------------
Maximum Condenser
Equipment Type Type of Cooling Harvest Rate (lbs Maximum Energy Use Water Use (gal/100
ice/24 hours) (kWh/100 lbs Ice) lbs Ice)
----------------------------------------------------------------------------------------------------------------
Ice Making Head Water <500 7.80-0.0055H 200-0.022H
-----------------------------------------------------------
500 and <1436 5.58-0.0011H 200-0.022H
-----------------------------------------------------------
1436 4.0 200-0.022H
----------------------------------------------------------------------------------------------------------------
Ice Making Head Air <450 10.26-0.0086H Not Applicable
-----------------------------------------------------------
450 6.89-0.0011H Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing Air <1000 8.85-0.0038H Not Applicable
(but not remote
compressor)
-----------------------------------------------------------
1000 5.10 Not Applicable
----------------------------------------------------------------------------------------------------------------
Remote Condensing Air <934 8.85-0.0038H Not Applicable
and Remote
Compressor
-----------------------------------------------------------
934 5.3 Not Applicable
----------------------------------------------------------------------------------------------------------------
Self Contained Water <200 11.40-0.019H 191-0.0315H
-----------------------------------------------------------
200 7.60 191-0.0315H
----------------------------------------------------------------------------------------------------------------
Self Contained Air <175 18.0-0.0469H Not Applicable
-----------------------------------------------------------
175 9.80 Not Applicable
----------------------------------------------------------------------------------------------------------------
H = Harvest rate in pounds per 24 hours.
Water use is for the condenser only and does not include potable water used to make ice.
``(2)(A) The Secretary may issue, by rule, standard levels
for types of automatic commercial ice makers that are not
covered by paragraph (1).
``(B) The standards established under subparagraph (A)
shall apply to products manufactured on or after the date that
is--
``(i) 3 years after the date on which the rule is
published under subparagraph (A); or
``(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final rule is published.
``(3)(A) Not later than January 1, 2015, with respect to
the standards established under paragraph (1), and, with
respect to the standards established under paragraph (2), not
later than 5 years after the date on which the standards take
effect, the Secretary shall issue a final rule to determine
whether amending the applicable standards is technologically
feasible and economically justified.
``(B) Not later than 5 years after the effective date of
any amended standards under subparagraph (A) or the publication
of a final rule determining that amending the standards is not
technologically feasible or economically justified, the
Secretary shall issue a final rule to determine whether
amending the standards established under paragraph (1) or the
amended standards, as applicable, is technologically feasible
or economically justified.
``(C) If the Secretary issues a final rule under
subparagraph (A) or (B) establishing amended standards, the
final rule shall provide that the amended standards apply to
products manufactured on or after the date that is--
``(i) 3 years after the date on which the final
amended standard is published; or
``(ii) if the Secretary determines, by rule, that 3
years is inadequate, not later than 5 years after the
date on which the final amended standard is published.
``(4) A final rule issued under paragraph (2) or (3) shall
establish standards at the maximum level that is technically
feasible and economically justified, as provided in subsections
(o) and (p) of section 325.''.
(e) Standards for Commercial Clothes Washers.--Section 342
of the Energy Policy and Conservation Act (42 U.S.C. 6313) (as
amended by subsection (d)) is amended by adding at the end the
following:
``(e) Commercial Clothes Washers.--(1) Each commercial
clothes washer manufactured on or after January 1, 2007, shall
have--
``(A) a Modified Energy Factor of at least 1.26;
and
``(B) a Water Factor of not more than 9.5.
``(2)(A)(i) Not later than January 1, 2010, the Secretary
shall publish a final rule to determine whether the standards
established under paragraph (1) should be amended.
``(ii) The rule published under clause (i) shall provide
that any amended standard shall apply to products manufactured
3 years after the date on which the final amended standard is
published.
``(B)(i) Not later than January 1, 2015, the Secretary
shall publish a final rule to determine whether the standards
established under paragraph (1) should be amended.
``(ii) The rule published under clause (i) shall provide
that any amended standard shall apply to products manufactured
3 years after the date on which the final amended standard is
published.''.
(f) Test Procedures.--Section 343 of the Energy Policy and
Conservation Act (42 U.S.C. 6314) is amended--
(1) in subsection (a)--
(A) in paragraph (4)--
(i) in subparagraph (A), by
inserting ``very large commercial
package air conditioning and heating
equipment,'' after ``large commercial
package air conditioning and heating
equipment,''; and
(ii) in subparagraph (B), by
inserting ``very large commercial
package air conditioning and heating
equipment,'' after ``large commercial
package air conditioning and heating
equipment,''; and
(B) by adding at the end the following:
``(6)(A)(i) In the case of commercial refrigerators,
freezers, and refrigerator-freezers, the test procedures shall
be--
``(I) the test procedures determined by the
Secretary to be generally accepted industry testing
procedures; or
``(II) rating procedures developed or recognized by
the ASHRAE or by the American National Standards
Institute.
``(ii) In the case of self-contained refrigerators,
freezers, and refrigerator-freezers to which standards are
applicable under paragraphs (2) and (3) of section 342(c), the
initial test procedures shall be the ASHRAE 117 test procedure
that is in effect on January 1, 2005.
``(B)(i) In the case of commercial refrigerators, freezers,
and refrigerators-freezers with doors covered by the standards
adopted in February 2002, by the California Energy Commission,
the rating temperatures shall be the integrated average
temperature of 38 degrees F ( 2 degrees F) for
refrigerator compartments and 0 degrees F ( 2
degrees F) for freezer compartments.
``(C) The Secretary shall issue a rule in accordance with
paragraphs (2) and (3) to establish the appropriate rating
temperatures for the other products for which standards will be
established under section 342(c)(4).
``(D) In establishing the appropriate test temperatures
under this subparagraph, the Secretary shall follow the
procedures and meet the requirements under section 323(e).
``(E)(i) Not later than 180 days after the publication of
the new ASHRAE 117 test procedure, if the ASHRAE 117 test
procedure for commercial refrigerators, freezers, and
refrigerator-freezers is amended, the Secretary shall, by rule,
amend the test procedure for the product as necessary to ensure
that the test procedure is consistent with the amended ASHRAE
117 test procedure, unless the Secretary makes a determination,
by rule, and supported by clear and convincing evidence, that
to do so would not meet the requirements for test procedures
under paragraphs (2) and (3).
``(ii) If the Secretary determines that 180 days is an
insufficient period during which to review and adopt the
amended test procedure or rating procedure under clause (i),
the Secretary shall publish a notice in the Federal Register
stating the intent of the Secretary to wait not longer than 1
additional year before putting into effect an amended test
procedure or rating procedure.
``(F)(i) If a test procedure other than the ASHRAE 117 test
procedure is approved by the American National Standards
Institute, the Secretary shall, by rule--
``(I) review the relative strengths and weaknesses
of the new test procedure relative to the ASHRAE 117
test procedure; and
``(II) based on that review, adopt 1 new test
procedure for use in the standards program.
``(ii) If a new test procedure is adopted under clause
(i)--
``(I) section 323(e) shall apply; and
``(II) subparagraph (B) shall apply to the adopted
test procedure.
``(7)(A) In the case of automatic commercial ice makers,
the test procedures shall be the test procedures specified in
Air-Conditioning and Refrigeration Institute Standard 810-2003,
as in effect on January 1, 2005.
``(B)(i) If Air-Conditioning and Refrigeration Institute
Standard 810-2003 is amended, the Secretary shall amend the
test procedures established in subparagraph (A) as necessary to
be consistent with the amended Air-Conditioning and
Refrigeration Institute Standard, unless the Secretary
determines, by rule, published in the Federal Register and
supported by clear and convincing evidence, that to do so would
not meet the requirements for test procedures under paragraphs
(2) and (3).
``(ii) If the Secretary issues a rule under clause (i)
containing a determination described in clause (ii), the rule
may establish an amended test procedure for the product that
meets the requirements of paragraphs (2) and (3).
``(C) The Secretary shall comply with section 323(e) in
establishing any amended test procedure under this paragraph.
``(8) With respect to commercial clothes washers, the test
procedures shall be the same as the test procedures established
by the Secretary for residential clothes washers under section
325(g).''; and
(2) in subsection (d)(1), by inserting ``very large
commercial package air conditioning and heating
equipment, commercial refrigerators, freezers, and
refrigerator-freezers, automatic commercial ice makers,
commercial clothes washers,'' after ``large commercial
package air conditioning and heating equipment,''.
(g) Labeling.--Section 344(e) of the Energy Policy and
Conservation Act (42 U.S.C. 6315(e)) is amended by inserting
``very large commercial package air conditioning and heating
equipment, commercial refrigerators, freezers, and
refrigerator-freezers, automatic commercial ice makers,
commercial clothes washers,'' after ``large commercial package
air conditioning and heating equipment,'' each place it
appears.
(h) Administration, Penalties, Enforcement, and
Preemption.--Section 345 of the Energy Policy and Conservation
Act (42 U.S.C. 6316) is amended--
(1) in subsection (a)--
(A) in paragraph (7), by striking ``and''
at the end;
(B) in paragraph (8), by striking the
period at the end and inserting ``; and''; and
(C) by adding at the end the following:
``(9) in the case of commercial clothes washers,
section 327(b)(1) shall be applied as if the National
Appliance Energy Conservation Act of 1987 was the
Energy Policy Act of 2005.'';
(2) in the first sentence of subsection (b)(1), by
striking ``part B'' and inserting ``part A''; and
(3) by adding at the end the following:
``(d)(1) Except as provided in paragraphs (2) and (3),
section 327 shall apply with respect to very large commercial
package air conditioning and heating equipment to the same
extent and in the same manner as section 327 applies under part
A on the date of enactment of this subsection.
``(2) Any State or local standard issued before the date of
enactment of this subsection shall not be preempted until the
standards established under section 342(a)(9) take effect on
January 1, 2010.
``(e)(1)(A) Subsections (a), (b), and (d) of section 326,
subsections (m) through (s) of section 325, and sections 328
through 336 shall apply with respect to commercial
refrigerators, freezers, and refrigerator-freezers to the same
extent and in the same manner as those provisions apply under
part A.
``(B) In applying those provisions to commercial
refrigerators, freezers, and refrigerator-freezers, paragraphs
(1), (2), (3), and (4) of subsection (a) shall apply.
``(2)(A) Section 327 shall apply to commercial
refrigerators, freezers, and refrigerator-freezers for which
standards are established under paragraphs (2) and (3) of
section 342(c) to the same extent and in the same manner as
those provisions apply under part A on the date of enactment of
this subsection, except that any State or local standard issued
before the date of enactment of this subsection shall not be
preempted until the standards established under paragraphs (2)
and (3) of section 342(c) take effect.
``(B) In applying section 327 in accordance with
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
``(3)(A) Section 327 shall apply to commercial
refrigerators, freezers, and refrigerator-freezers for which
standards are established under section 342(c)(4) to the same
extent and in the same manner as the provisions apply under
part A on the date of publication of the final rule by the
Secretary, except that any State or local standard issued
before the date of publication of the final rule by the
Secretary shall not be preempted until the standards take
effect.
``(B) In applying section 327 in accordance with
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
``(4)(A) If the Secretary does not issue a final rule for a
specific type of commercial refrigerator, freezer, or
refrigerator-freezer within the time frame specified in section
342(c)(5), subsections (b) and (c) of section 327 shall not
apply to that specific type of refrigerator, freezer, or
refrigerator-freezer for the period beginning on the date that
is 2 years after the scheduled date for a final rule and ending
on the date on which the Secretary publishes a final rule
covering the specific type of refrigerator, freezer, or
refrigerator-freezer.
``(B) Any State or local standard issued before the date of
publication of the final rule shall not be preempted until the
final rule takes effect.
``(5)(A) In the case of any commercial refrigerator,
freezer, or refrigerator-freezer to which standards are
applicable under paragraphs (2) and (3) of section 342(c), the
Secretary shall require manufacturers to certify, through an
independent, nationally recognized testing or certification
program, that the commercial refrigerator, freezer, or
refrigerator-freezer meets the applicable standard.
``(B) The Secretary shall, to the maximum extent
practicable, encourage the establishment of at least 2
independent testing and certification programs.
``(C) As part of certification, information on equipment
energy use and interior volume shall be made available to the
Secretary.
``(f)(1)(A)(i) Except as provided in clause (ii), section
327 shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(1) to the
same extent and in the same manner as the section applies under
part A on the date of enactment of this subsection.
``(ii) Any State standard issued before the date of
enactment of this subsection shall not be preempted until the
standards established under section 342(d)(1) take effect.
``(B) In applying section 327 to the equipment under
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
``(2)(A)(i) Except as provided in clause (ii), section 327
shall apply to automatic commercial ice makers for which
standards have been established under section 342(d)(2) to the
same extent and in the same manner as the section applies under
part A on the date of publication of the final rule by the
Secretary.
``(ii) Any State standard issued before the date of
publication of the final rule by the Secretary shall not be
preempted until the standards established under section
342(d)(2) take effect.
``(B) In applying section 327 in accordance with
subparagraph (A), paragraphs (1), (2), and (3) of subsection
(a) shall apply.
``(3)(A) If the Secretary does not issue a final rule for a
specific type of automatic commercial ice maker within the time
frame specified in section 342(d), subsections (b) and (c) of
section 327 shall no longer apply to the specific type of
automatic commercial ice maker for the period beginning on the
day after the scheduled date for a final rule and ending on the
date on which the Secretary publishes a final rule covering the
specific type of automatic commercial ice maker.
``(B) Any State standard issued before the publication of
the final rule shall not be preempted until the standards
established in the final rule take effect.
``(4)(A) The Secretary shall monitor whether manufacturers
are reducing harvest rates below tested values for the purpose
of bringing non-complying equipment into compliance.
``(B) If the Secretary finds that there has been a
substantial amount of manipulation with respect to harvest
rates under subparagraph (A), the Secretary shall take steps to
minimize the manipulation, such as requiring harvest rates to
be within 5 percent of tested values.
``(g)(1)(A) If the Secretary does not issue a final rule
for commercial clothes washers within the timeframe specified
in section 342(e)(2), subsections (b) and (c) of section 327
shall not apply to commercial clothes washers for the period
beginning on the day after the scheduled date for a final rule
and ending on the date on which the Secretary publishes a final
rule covering commercial clothes washers.
``(B) Any State or local standard issued before the date on
which the Secretary publishes a final rule shall not be
preempted until the standards established under section
342(e)(2) take effect.
``(2) The Secretary shall undertake an educational program
to inform owners of laundromats, multifamily housing, and other
sites where commercial clothes washers are located about the
new standard, including impacts on washer purchase costs and
options for recovering those costs through coin collection.''.
SEC. 137. ENERGY LABELING.
(a) Rulemaking on Effectiveness of Consumer Product
Labeling.--Section 324(a)(2) of the Energy Policy and
Conservation Act (42 U.S.C. 6294(a)(2)) is amended by adding at
the end the following:
``(F)(i) Not later than 90 days after the date of enactment
of this subparagraph, the Commission shall initiate a
rulemaking to consider--
``(I) the effectiveness of the consumer products
labeling program in assisting consumers in making
purchasing decisions and improving energy efficiency;
and
``(II) changes to the labeling rules (including
categorical labeling) that would improve the
effectiveness of consumer product labels.
``(ii) Not later than 2 years after the date of enactment
of this subparagraph, the Commission shall complete the
rulemaking initiated under clause (i).
``(G)(i) Not later than 18 months after the date of
enactment of this subparagraph, the Commission shall issue by
rule, in accordance with this section, labeling requirements
for the electricity used by ceiling fans to circulate air in a
room.
``(ii) The rule issued under clause (i) shall apply to
products manufactured after the later of--
``(I) January 1, 2009; or
``(II) the date that is 60 days after the final
rule is issued.''.
(b) Rulemaking on Labeling for Additional Products.--
Section 324(a) of the Energy Policy and Conservation Act (42
U.S.C. 6294(a)) is amended by adding at the end the following:
``(5)(A) For covered products described in subsections (u)
through (ff) of section 325, after a test procedure has been
prescribed under section 323, the Secretary or the Commission,
as appropriate, may prescribe, by rule, under this section
labeling requirements for the products.
``(B) 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 on the date of enactment
of this paragraph.
``(C) In the case of dehumidifiers covered under section
325(dd), the Commission shall not require an `Energy Guide'
label.''.
SEC. 138. INTERMITTENT ESCALATOR STUDY.
(a) In General.--The Administrator of General Services
shall conduct a study on the advantages and disadvantages of
employing intermittent escalators in the United States.
(b) Contents.--Such study shall include an analysis of--
(1) the energy end-cost savings derived from the
use of intermittent escalators;
(2) the cost savings derived from reduced
maintenance requirements; and
(3) such other issues as the Administrator
considers appropriate.
(c) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Administrator shall transmit
to Congress a report on the results of the study.
(d) Definition.--For purpose of this section, the term
``intermittent escalator'' means an escalator that remains in a
stationary position until it automatically operates at the
approach of a passenger, returning to a stationary position
after the passenger completes passage.
SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS UTILITIES STUDY.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in consultation with the
National Association of Regulatory Utility Commissioners and
the National Association of State Energy Officials, shall
conduct a study of State and regional policies that promote
cost-effective programs to reduce energy consumption (including
energy efficiency programs) that are carried out by--
(1) utilities that are subject to State regulation;
and
(2) nonregulated utilities.
(b) Consideration.--In conducting the study under
subsection (a), the Secretary shall take into consideration--
(1) performance standards for achieving energy use
and demand reduction targets;
(2) funding sources, including rate surcharges;
(3) infrastructure planning approaches (including
energy efficiency programs) and infrastructure
improvements;
(4) the costs and benefits of consumer education
programs conducted by State and local governments and
local utilities to increase consumer awareness of
energy efficiency technologies and measures; and
(5) methods of--
(A) removing disincentives for utilities to
implement energy efficiency programs;
(B) encouraging utilities to undertake
voluntary energy efficiency programs; and
(C) ensuring appropriate returns on energy
efficiency programs.
(c) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that includes--
(1) the findings of the study; and
(2) any recommendations of the Secretary, including
recommendations on model policies to promote energy
efficiency programs.
SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM.
(a) In General.--The Secretary shall establish a pilot
program under which the Secretary provides financial assistance
to at least 3, but not more than 7, States to carry out pilot
projects in the States for--
(1) planning and adopting statewide programs that
encourage, for each year in which the pilot project is
carried out--
(A) energy efficiency; and
(B) reduction of consumption of electricity
or natural gas in the State by at least 0.75
percent, as compared to a baseline determined
by the Secretary for the period preceding the
implementation of the program; or
(2) for any State that has adopted a statewide
program as of the date of enactment of this Act,
activities that reduce energy consumption in the State
by expanding and improving the program.
(b) Verification.--A State that receives financial
assistance under subsection (a)(1) shall submit to the
Secretary independent verification of any energy savings
achieved through the statewide program.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2006 through 2010, to remain available
until expended.
SEC. 141. REPORT ON FAILURE TO COMPLY WITH DEADLINES FOR NEW OR REVISED
ENERGY CONSERVATION STANDARDS.
(a) Initial Report.--The Secretary shall submit a report to
Congress regarding each new or revised energy conservation or
water use standard which the Secretary has failed to issue in
conformance with the deadlines established in the Energy Policy
and Conservation Act. Such report shall state the reasons why
the Secretary has failed to comply with the deadline for
issuances of the new or revised standard and set forth the
Secretary's plan for expeditiously prescribing such new or
revised standard. The Secretary's initial report shall be
submitted not later than 6 months following enactment of this
Act and subsequent reports shall be submitted whenever the
Secretary determines that additional deadlines for issuance of
new or revised standards have been missed.
(b) Implementation Report.--Every 6 months following the
submission of a report under subsection (a) until the adoption
of a new or revised standard described in such report, the
Secretary shall submit to the Congress an implementation report
describing the Secretary's progress in implementing the
Secretary's plan or the issuance of the new or revised
standard.
Subtitle D--Public Housing
SEC. 151. 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 generation, advanced energy
savings technologies, including
renewable energy generation, and other
such retrofits.''.
SEC. 152. 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 Conservation Policy Act),
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.
SEC. 153. 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, 2006'';
(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 inserting ``, and,
with respect to 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), the 2003 International
Energy Conservation Code'' after ``90.1-
1989')'';
(2) in subsection (b)--
(A) by striking ``within 1 year after the
date of the enactment of the Energy Policy Act
of 1992'' and inserting ``by September 30,
2006''; and
(B) by inserting ``, and, with respect to
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), the 2003 International Energy
Conservation Code'' before the period at the
end; and
(3) in subsection (c)--
(A) in the heading, by inserting ``and the
International Energy Conservation Code'' after
``Model Energy Code''; and
(B) by inserting ``, or, with respect to
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), the 2003 International Energy
Conservation Code'' after ``1989''.
SEC. 154. 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 1 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 2 years thereafter on
progress in implementing the strategy.
TITLE II--RENEWABLE ENERGY
Subtitle A--General Provisions
SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.
(a) Resource Assessment.--Not later than 6 months after the
date of enactment of this Act, and each year thereafter, the
Secretary shall review the available assessments of renewable
energy resources within the United States, including solar,
wind, biomass, ocean (includingtidal, wave, current, 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 Act, 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 $10,000,000 for each of fiscal years 2006 through
2010.
SEC. 202. 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--
(1) by striking the last sentence;
(2) by designating the first, second, and third
sentences as paragraphs (1), (2), and (3),
respectively;
(3) in paragraph (3) (as so designated), by
striking ``and which satisfies'' and all that follows
through ``deems necessary''; and
(4) by adding at the end the following:
``(4)(A) Subject to subparagraph (B), if there are
insufficient appropriations to make full payments for electric
production from all qualified renewable energy facilities for a
fiscal year, the Secretary shall assign--
``(i) 60 percent of appropriated funds for the
fiscal year to facilities that use solar, wind, ocean
(including tidal, wave, current, and thermal),
geothermal, or closed-loop (dedicated energy crops)
biomass technologies to generate electricity; and
``(ii) 40 percent of appropriated funds for the
fiscal year to other projects.
``(B) After submitting to Congress an explanation of the
reasons for the alteration, the Secretary may alter the
percentage requirements of subparagraph (A).''.
(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, an Indian tribal government or
subdivision thereof, or a Native Corporation (as
defined in section 3 of the Alaska Native Claims
Settlement Act (43 U.S.C. 1602)),''; and
(2) by inserting ``landfill gas, livestock methane,
ocean (including tidal, wave, current, and thermal),''
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 ``before October 1, 2016''.
(d) Payment Period.--Section 1212(d) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(d)) is amended in the second
sentence by inserting ``, or in which the Secretary determines
that all necessary Federal and State authorizations have been
obtained to begin construction of the facility'' after
``eligible for such payments''.
(e) Amount of Payment.--Section 1212(e)(1) of the Energy
Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is amended in the
first sentence by inserting ``landfill gas, livestock methane,
ocean (including tidal, wave, current, and thermal),'' after
``wind, biomass,''.
(f) Termination of Authority.--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, 2026''.
(g) Authorization of Appropriations.--Section 1212 of the
Energy Policy Act of 1992 (42 U.S.C. 13317) is amended by
striking subsection (g) and inserting the following:
``(g) Authorization of Appropriations.--There are
authorized to be appropriated such sums as are necessary to
carry out this section for each of fiscal years 2006 through
2026, to remain available until expended.''.
SEC. 203. FEDERAL PURCHASE REQUIREMENT.
(a) Requirement.--The President, acting through the
Secretary, 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 2007
through 2009.
(2) Not less than 5 percent in fiscal years 2010
through 2012.
(3) Not less than 7.5 percent in fiscal year 2013
and each fiscal year thereafter.
(b) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means any lignin
waste material that is segregated from other waste
materials and is determined to be nonhazardous by the
Administrator of the Environmental Protection Agency
and 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;
(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) Renewable energy.--The term ``renewable
energy'' means electric energy generated from solar,
wind, biomass, landfill gas, ocean (including tidal,
wave, current, and thermal), 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, 2007, and every 2
years thereafter, the Secretary shall provide a report to
Congress on the progress of the Federal Government in meeting
the goals established by this section.
SEC. 204. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC BUILDINGS.
(a) In General.--Subchapter VI of chapter 31 of title 40,
United States Code, is amended by adding at the end the
following:
``Sec. 3177. Use of photovoltaic energy in public buildings
``(a) Photovoltaic Energy Commercialization Program.--
``(1) In general.--The Administrator of General
Services may establish a photovoltaic energy
commercialization program for the procurement and
installation of photovoltaic solar electric systems for
electric production in new and existing public
buildings.
``(2) Purposes.--The purposes of the program shall
be to accomplish the following:
``(A) To accelerate the growth of a
commercially viable photovoltaic industry to
make this energy system available to the
general public as an option which can reduce
the national consumption of fossil fuel.
``(B) To reduce the fossil fuel consumption
and costs of the Federal Government.
``(C) To attain the goal of installing
solar energy systems in 20,000 Federal
buildings by 2010, as contained in the Federal
Government's Million Solar Roof Initiative of
1997.
``(D) To stimulate the general use within
the Federal Government of life-cycle costing
and innovative procurement methods.
``(E) To develop program performance data
to support policy decisions on future incentive
programs with respect to energy.
``(3) Acquisition of photovoltaic solar electric
systems.--
``(A) In general.--The program shall
provide for the acquisition of photovoltaic
solar electric systems and associated storage
capability for use in public buildings.
``(B) Acquisition levels.--The acquisition
of photovoltaic electric systems shall be at a
level substantial enough to allow use of low-
cost production techniques with at least 150
megawatts (peak) cumulative acquired during the
5 years of the program.
``(4) Administration.--The Administrator shall
administer the program and shall--
``(A) issue such rules and regulations as
may be appropriate to monitor and assess the
performance and operation of photovoltaic solar
electric systems installed pursuant to this
subsection;
``(B) develop innovative procurement
strategies for the acquisition of such systems;
and
``(C) transmit to Congress an annual report
on the results of the program.
``(b) Photovoltaic Systems Evaluation Program.--
``(1) In general.--Not later than 60 days after the
date of enactment of this section, the Administrator
shall establish a photovoltaic solar energy systems
evaluation program to evaluate such photovoltaic solar
energy systems as are required in public buildings.
``(2) Program requirement.--In evaluating
photovoltaic solar energy systems under the program,
the Administrator shall ensure that such systems
reflect the most advanced technology.
``(c) Authorization of Appropriations.--
``(1) Photovoltaic energy commercialization
program.--There are authorized to be appropriated to
carry out subsection (a) $50,000,000 for each of fiscal
years 2006 through 2010. Such sums shall remain
available until expended.
``(2) Photovoltaic systems evaluation program.--
There are authorized to be appropriated to carry out
subsection (b) $10,000,000 for each of fiscal years
2006 through 2010. Such sums shall remain available
until expended.''.
(b) Conforming Amendment.--The table of sections for the
National Energy Conservation Policy Act is amended by inserting
after the item relating to section 569 the following:
``Sec. 570. Use of photovoltaic energy in public buildings''.
SEC. 205. BIOBASED PRODUCTS.
Section 9002(c)(1) of the Farm Security and Rural
Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended by
inserting ``or such items that comply with the regulations
issued under section 103 of Public Law 100-556 (42 U.S.C.
6914b-1)'' after ``practicable''.
SEC. 206. RENEWABLE ENERGY SECURITY.
(a) Weatherization Assistance.--Section 415(c) of the
Energy Conservation and Production Act (42 U.S.C. 6865(c)) is
amended--
(1) in paragraph (1), by striking ``in paragraph
(3)'' and inserting ``in paragraphs (3) and (4)'';
(2) in paragraph (3), by striking ``$2,500 per
dwelling unit average provided in paragraph (1)'' and
inserting ``dwelling unit averages provided in
paragraphs (1) and (4)''; and
(3) by adding at the end the following new
paragraphs:
``(4) The expenditure of financial assistance provided
under this part for labor, weatherization materials, and
related matters for a renewable energy system shall not exceed
an average of $3,000 per dwelling unit.
``(5)(A) The Secretary shall by regulations--
``(i) establish the criteria which are to be used
in prescribing performance and quality standards under
paragraph (6)(A)(ii) or in specifying any form of
renewable energy under paragraph (6)(A)(i)(I); and
``(ii) establish a procedure under which a
manufacturer of an item may request the Secretary to
certify that the item will be treated, for purposes of
this paragraph, as a renewable energy system.
``(B) The Secretary shall make a final determination with
respect to any request filed under subparagraph (A)(ii) within
1 year after the filing of the request, together with any
information required to be filed with such request under
subparagraph (A)(ii).
``(C) Each month the Secretary shall publish a report of
any request under subparagraph (A)(ii) which has been denied
during the preceding month and the reasons for the denial.
``(D) The Secretary shall not specify any form of renewable
energy under paragraph (6)(A)(i)(I) unless the Secretary
determines that--
``(i) there will be a reduction in oil or natural
gas consumption as a result of such specification;
``(ii) such specification will not result in an
increased use of any item which is known to be, or
reasonably suspected to be, environmentally hazardous
or a threat to public health or safety; and
``(iii) available Federal subsidies do not make
such specification unnecessary or inappropriate (in the
light of the most advantageous allocation of economic
resources).
``(6) In this subsection--
``(A) the term `renewable energy system' means a
system which--
``(i) when installed in connection with a
dwelling, transmits or uses--
``(I) solar energy, energy derived
from the geothermal deposits, energy
derived from biomass, or any other form
of renewable energy which the Secretary
specifies by regulations, for the
purpose of heating or cooling such
dwelling or providing hot water or
electricity for use within such
dwelling; or
``(II) wind energy for nonbusiness
residential purposes;
``(ii) meets the performance and quality
standards (if any) which have been prescribed
by the Secretary by regulations;
``(iii) in the case of a combustion rated
system, has a thermal efficiency rating of at
least 75 percent; and
``(iv) in the case of a solar system, has a
thermal efficiency rating of at least 15
percent; and
``(B) the term `biomass' means any organic matter
that is available on a renewable or recurring basis,
including agricultural crops and trees, wood and wood
wastes and residues, plants (including aquatic plants),
grasses, residues, fibers, and animal wastes, municipal
wastes, and other waste materials.''.
(b) District Heating and Cooling Programs.--Section 172 of
the Energy Policy Act of 1992 (42 U.S.C. 13451 note) is
amended--
(1) in subsection (a)--
(A) by striking ``and'' at the end of
paragraph (3);
(B) by striking the period at the end of
paragraph (4) and inserting ``; and''; and
(C) by adding at the end the following new
paragraph:
``(5) evaluate the use of renewable energy systems
(as such term is defined in section 415(c) of the
Energy Conservation and Production Act (42 U.S.C.
6865(c))) in residential buildings.''; and
(2) in subsection (b), by striking ``this Act'' and
inserting ``the Energy Policy Act of 2005''.
(c) Rebate Program.--
(1) Establishment.--The Secretary shall establish a
program providing rebates for consumers for
expenditures made for the installation of a renewable
energy system in connection with a dwelling unit or
small business.
(2) Amount of rebate.--Rebates provided under the
program established under paragraph (1) shall be in an
amount not to exceed the lesser of--
(A) 25 percent of the expenditures
described in paragraph (1) made by the
consumer; or
(B) $3,000.
(3) Definition.--For purposes of this subsection,
the term ``renewable energy system'' has the meaning
given that term in section 415(c)(6)(A) of the Energy
Conservation and Production Act (42 U.S.C.
6865(c)(6)(A)), as added by subsection (a)(3) of this
section.
(4) Authorization of appropriations.--There are
authorized to be appropriated to the Secretary for
carrying out this subsection, to remain available until
expended--
(A) $150,000,000 for fiscal year 2006;
(B) $150,000,000 for fiscal year 2007;
(C) $200,000,000 for fiscal year 2008;
(D) $250,000,000 for fiscal year 2009; and
(E) $250,000,000 for fiscal year 2010.
(d) Renewable Fuel Inventory.--Not later than 180 days
after the date of enactment of this Act, the Secretary shall
transmit to Congress a report containing--
(1) an inventory of renewable fuels available for
consumers; and
(2) a projection of future inventories of renewable
fuels based on the incentives provided in this section.
SEC. 207. INSTALLATION OF PHOTOVOLTAIC SYSTEM.
There is authorized to be appropriated to the General
Services Administration to install a photovoltaic system, as
set forth in the Sun Wall Design Project, for the headquarters
building of the Department of Energy located at 1000
Independence Avenue Southwest in the District of Columbia,
commonly known as the Forrestal Building, $20,000,000 for
fiscal year 2006. Such sums shall remain available until
expended.
SEC. 208. SUGAR CANE ETHANOL PROGRAM.
(a) Definition of Program.--In this section, the term
``program'' means the Sugar Cane Ethanol Program established by
subsection (b).
(b) Establishment.--There is established within the
Environmental Protection Agency a program to be known as the
``Sugar Cane Ethanol Program''.
(c) Project.--
(1) In general.--Subject to the availability of
appropriations under subsection (d), in carrying out
the program, the Administrator of the Environmental
Protection Agency shall establish a project that is--
(A) carried out in multiple States--
(i) in each of which is produced
cane sugar that is eligible for loans
under section 156 of the Federal
Agriculture Improvement and Reform Act
of 1996 (7 U.S.C. 7272), or a similar
subsequent authority; and
(ii) at the option of each such
State, that have an incentive program
that requires the use of ethanol in the
State; and
(B) designed to study the production of
ethanol from cane sugar, sugarcane, and
sugarcane byproducts.
(2) Requirements.--A project described in paragraph
(1) shall--
(A) be limited to sugar producers and the
production of ethanol in the States of Florida,
Louisiana, Texas, and Hawaii, divided equally
among the States, to demonstrate that the
process may be applicable to cane sugar,
sugarcane, and sugarcane byproducts;
(B) include information on the ways in
which the scale of production may be replicated
once the sugar cane industry has located
sitesfor, and constructed, ethanol production facilities; and
(C) not last more than 3 years.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $36,000,000, to
remain available until expended.
SEC. 209. RURAL AND REMOTE COMMUNITY ELECTRIFICATION GRANTS.
The Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2601 et seq.) is amended in title VI by adding at the
end the following:
``SEC. 609. RURAL AND REMOTE COMMUNITIES ELECTRIFICATION GRANTS.
``(a) Definitions.--In this section:
``(1) The term `eligible grantee' means a local
government or municipality, peoples' utility district,
irrigation district, and cooperative, nonprofit, or
limited-dividend association in a rural area.
``(2) The term `incremental hydropower' means
additional generation achieved from increased
efficiency after January 1, 2005, at a hydroelectric
dam that was placed in service before January 1, 2005.
``(3) The term `renewable energy' means electricity
generated from--
``(A) a renewable energy source; or
``(B) hydrogen, other than hydrogen
produced from a fossil fuel, that is produced
from a renewable energy source.
``(4) The term `renewable energy source' means--
``(A) wind;
``(B) ocean waves;
``(C) biomass;
``(D) solar
``(E) landfill gas;
``(F) incremental hydropower;
``(G) livestock methane; or
``(H) geothermal energy.
``(5) The term `rural area' means a city, town, or
unincorporated area that has a population of not more
than 10,000 inhabitants.
``(b) Grants.--The Secretary, in consultation with the
Secretary of Agriculture and the Secretary of the Interior, may
provide grants under this section to eligible grantees for the
purpose of--
``(1) increasing energy efficiency, siting or
upgrading transmission and distribution lines serving
rural areas,; or
``(2) providing or modernizing electric generation
facilities that serve rural areas.
``(c) Grant Administration.--(1) The Secretary shall make
grants under this section based on a determination of cost-
effectiveness and the most effective use of the funds to
achieve the purposes described in subsection (b).
``(2) For each fiscal year, the Secretary shall allocate
grant funds under this section equally between the purposes
described in paragraphs (1) and (2) of subsection (b).
``(3) In making grants for the purposes described in
subsection (b)(2), the Secretary shall give preference to
renewable energy facilities.
``(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$20,000,000 for each of fiscal years 2006 through 2012.''.
SEC. 210. GRANTS TO IMPROVE THE COMMERCIAL VALUE OF FOREST BIOMASS FOR
ELECTRIC ENERGY, USEFUL HEAT, TRANSPORTATION FUELS,
AND OTHER COMMERCIAL PURPOSES.
(a) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means
nonmerchantable materials or precommercial thinnings
that are byproducts of preventive treatments, such as
trees, wood, brush, thinnings, chips, and slash, that
are removed--
(A) to reduce hazardous fuels;
(B) to reduce or contain disease or insect
infestation; or
(C) to restore forest health.
(2) Indian tribe.--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)).
(3) Nonmerchantable.--For purposes of subsection
(b), the term ``nonmerchantable'' means that portion of
the byproducts of preventive treatments that would not
otherwise be used for higher value products.
(4) Person.--The term ``person'' includes--
(A) an individual;
(B) a community (as determined by the
Secretary concerned);
(C) an Indian tribe;
(D) a small business or a corporation that
is incorporated in the United States; and
(E) a nonprofit organization.
(5) Preferred community.--The term ``preferred
community'' means--
(A) any Indian tribe;
(B) any town, township, municipality, or
other similar unit of local government (as
determined by the Secretary concerned) that--
(i) has a population of not more
than 50,000 individuals; and
(ii) the Secretary concerned, in
the sole discretion of the Secretary
concerned, determines contains or is
located near Federal or Indian land,
the condition of which is at
significant risk of catastrophic
wildfire, disease, or insect
infestation or which suffers from
disease or insect infestation; or
(C) any county that--
(i) is not contained within a
metropolitan statistical area; and
(ii) the Secretary concerned, in
the sole discretion of the Secretary
concerned, determines contains or is
located near Federal or Indian land,
the condition of which is at
significant risk of catastrophic
wildfire, disease, or insect
infestation or which suffers from
disease or insect infestation.
(6) Secretary concerned.--The term ``Secretary
concerned'' means the Secretary of Agriculture or the
Secretary of the Interior.
(b) Biomass Commercial Use Grant Program.--
(1) In general.--The Secretary concerned may make
grants to any person in a preferred community that owns
or operates a facility that uses biomass as a raw
material to produce electric energy, sensible heat, or
transportation fuels to offset the costs incurred to
purchase biomass for use by such facility.
(2) Grant amounts.--A grant under this subsection
may not exceed $20 per green ton of biomass delivered.
(3) Monitoring of grant recipient activities.--As a
condition of a grant under this subsection, the grant
recipient shall keep such records as the Secretary
concerned 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 a
representative of the Secretary concerned, the grant
recipient shall afford the representative reasonable
access to the facility that purchases or uses biomass
and an opportunity to examine the inventory and records
of the facility.
(c) Improved Biomass Use Grant Program.--
(1) In general.--The Secretary concerned may make
grants to persons to offset the cost of projects to
develop or research opportunities to improve the use
of, or add value to, biomass. In making such grants,
the Secretary concerned shall give preference to
persons in preferred communities.
(2) Selection.--The Secretary concerned shall
select a grant recipient under paragraph (1) after
giving consideration to--
(A) the anticipated public benefits of the
project, including the potential to develop
thermal or electric energy resources or
affordable energy;
(B) opportunities for the creation or
expansion of small businesses and micro-
businesses;
(C) the potential for new job creation;
(D) the potential for the project to
improve efficiency or develop cleaner
technologies for biomass utilization; and
(E) the potential for the project to reduce
the hazardous fuels from the areas in greatest
need of treatment.
(3) Grant amount.--A grant under this subsection
may not exceed $500,000.
(d) Authorization of Appropriations.--There are authorized
to be appropriated $50,000,000 for each of the fiscal years
2006 through 2016 to carry out this section.
(e) Report.--Not later than October 1, 2010, the Secretary
of Agriculture, in consultation with the Secretary of the
Interior, shall submit to the Committee on Energy and Natural
Resources and the Committee on Agriculture, Nutrition, and
Forestry of the Senate, and the Committee on Resources, the
Committee on Energy and Commerce, and the Committee on
Agriculture of the House of Representatives, a report
describing the results of the grant programs authorized by this
section. The report shall include the following:
(1) An identification of the size, type, and use of
biomass by persons that receive grants under this
section.
(2) The distance between the land from which the
biomass was removed and the facility that used the
biomass.
(3) The economic impacts, particularly new job
creation, resulting from the grants to and operation of
the eligible operations.
SEC. 211. SENSE OF CONGRESS REGARDING GENERATION CAPACITY OF
ELECTRICITY FROM RENEWABLE ENERGY RESOURCES ON
PUBLIC LANDS.
It is the sense of the Congress that the Secretary of the
Interior should, before the end of the 10-year period beginning
on the date of enactment of this Act, seek to have approved
non-hydropower renewable energy projects located on the public
lands with a generation capacity of at least 10,000 megawatts
of electricity.
Subtitle B--Geothermal Energy
SEC. 221. SHORT TITLE.
This subtitle may be cited as the ``John Rishel Geothermal
Steam Act Amendments of 2005''.
SEC. 222. COMPETITIVE LEASE SALE REQUIREMENTS.
Section 4 of the Geothermal Steam Act of 1970 (30 U.S.C.
1003) is amended to read as follows:
``SEC. 4. LEASING PROCEDURES.
``(a) Nominations.--The Secretary shall accept nominations
of land to be leased at any time from qualified companies and
individuals under this Act.
``(b) Competitive Lease Sale Required.--
``(1) In general.--Except as otherwise specifically
provided by this Act, all land to be leased that is not
subject to leasing under subsection (c) shall be leased
as provided in this subsection to the highest
responsible qualified bidder, as determined by the
Secretary.
``(2) Competitive lease sales.--The Secretary shall
hold a competitive lease sale at least once every 2
years for land in a State that has nominations pending
under subsection (a) if the land is otherwise available
for leasing.
``(3) Lands subject to mining claims.--Lands that
are subject to a mining claim for which a plan of
operations has been approved by the relevant Federal
land management agency may be available for
noncompetitive leasing under this section to the mining
claim holder.
``(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 a competitive
lease sale.
``(d) Pending Lease Applications.--
``(1) In general.--It shall be a priority for the
Secretary, and for the Secretary of Agriculture with
respect to National Forest Systems land, to ensure
timely completion of administrative actions, including
amendments to applicable forest plans and resource
management plans, necessary to process applications for
geothermal leasing pending on the date of enactment of
this subsection. All future forest plans and resource
management plans for areas with high geothermal
resource potential shall consider geothermal leasing
and development.
``(2) Administration.--An application described in
paragraph (1) and any lease issued pursuant to the
application--
``(A) except as provided in subparagraph
(B), shall be subject to this section as in
effect on the day before the date of enactment
of this paragraph; or
``(B) at the election of the applicant,
shall be subject to this section as in effect
on the effective date of this paragraph.
``(e) Leases Sold as a Block.--If information is available
to the Secretary indicating a geothermal resource that could be
produced as 1 unit can reasonably be expected to underlie more
than 1 parcel to be offered in a competitive lease sale, the
parcels for such a resource may be offered for bidding as a
block in the competitive lease sale.''.
SEC. 223. DIRECT USE.
(a) Fees for Direct Use.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) is amended--
(1) in subsection (c), by redesignating paragraphs
(1) and (2) as subparagraphs (A) and (B), respectively;
(2) by redesignating subsections (a) through (d) as
paragraphs (1) through (4), respectively;
(3) by inserting ``(a) In General.--'' after ``SEC.
5.''; and
(4) by adding at the end the following:
``(b) Direct Use.--
``(1) In general.--Notwithstanding subsection
(a)(1), the Secretary shall establish a schedule of
fees, in lieu of royalties for geothermal resources,
that a lessee or its affiliate--
``(A) uses for a purpose other than the
commercial generation of electricity; and
``(B) does not sell.
``(2) Schedule of fees.--The schedule of fees--
``(A) may be based on the quantity or
thermal content, or both, of geothermal
resources used;
``(B) shall ensure a fair return to the
United States for use of the resource; and
``(C) shall encourage development of the
resource.
``(3) State, tribal, or local governments.--If a
State, tribal, or local government is the lessee and
uses geothermal resources without sale and for public
purposes other than commercial generation of
electricity, the Secretary shall charge only a nominal
fee for use of the resource.
``(4) Final regulation.--In issuing any final
regulation establishing a schedule of fees under this
subsection, the Secretary shall seek--
``(A) to provide lessees with a simplified
administrative system;
``(B) to facilitate development of direct
use of geothermal resources; and
``(C) to contribute to sustainable economic
development opportunities in the area.''.
(b) Leasing for Direct Use.--Section 4 of the Geothermal
Steam Act of 1970 (30 U.S.C. 1003) (as amended by section 222)
is further amended by adding at the end the following:
``(f) Leasing for Direct Use of Geothermal Resources.--
Notwithstanding subsection (b), the Secretary may identify
areas in which the land to be leased under this Act exclusively
for direct use of geothermal resources, without sale for
purposes other than commercial generation of electricity, may
be leased to any qualified applicant that first applies for
such a lease under regulations issued by the Secretary, if the
Secretary--
``(1) publishes a notice of the land proposed for
leasing not later than 90 days before the date of the
issuance of the lease;
``(2) does not receive during the 90-day period
beginning on the date of the publication any nomination
to include the land concerned in the next competitive
lease sale; and
``(3) determines there is no competitive interest
in the geothermal resources in the land to be leased.
``(g) Area Subject to Lease for Direct Use.--
``(1) In general.--Subject to paragraph (2), a
geothermal lease for the direct use of geothermal
resources shall cover not more than the quantity of
acreage determined by the Secretary to be reasonably
necessary for the proposed use.
``(2) Limitations.--The quantity of acreage covered
by the lease shall not exceed the limitations
established under section 7.''.
(c) Application of New Lease Terms.--The schedule of fees
established under the amendment made by subsection (a)(4) shall
apply with respect to payments under a lease converted under
this subsection that are due and owing, and have been paid, on
or after July 16, 2003. This subsection shall not require the
refund of royalties paid to a state under section 20 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1019) prior to the date
of enactment of this Act.
SEC. 224. ROYALTIES AND NEAR-TERM PRODUCTION INCENTIVES.
(a) Royalty.--Section 5 of the Geothermal Steam Act of 1970
(30 U.S.C. 1004) is further amended--
(1) in subsection (a) by striking paragraph (1) and
inserting the following:
``(1) a royalty on electricity produced using
geothermal resources, other than direct use of
geothermal resources, that shall be--
``(A) not less than 1 percent and not more
than 2.5 percent of the gross proceeds from the
sale of electricity produced from such
resources during the first 10 years of
production under the lease; and
``(B) not less than 2 and not more than 5
percent of the gross proceeds from the sale of
electricity produced from such resources during
each year after such 10-year period;''; and
(2) by adding at the end the following:
``(c) Final Regulation Establishing Royalty Rates.--In
issuing any final regulation establishing royalty rates under
this section, the Secretary shall seek--
``(1) to provide lessees a simplified
administrative system;
``(2) to encourage new development; and
``(3) to achieve the same level of royalty revenues
over a 10-year period as the regulation in effect on
the date of enactment of this subsection.
``(d) Credits for In-Kind Payments of Electricity.--The
Secretary may provide to a lessee a credit against royalties
owed under this Act, in an amount equal to the value of
electricity provided under contract to a State or county
government that is entitled to a portion of such royalties
under section 20 of this Act, section 35 of the Mineral Leasing
Act (30 U.S.C. 191), except as otherwise provided by this
section, or section 6 of the Mineral Leasing Act for Acquired
Lands (30 U.S.C. 355), if--
``(1) the Secretary has approved in advance the
contract between the lessee and the State or county
government for such in-kind payments;
``(2) the contract establishes a specific
methodology to determine the value of such credits; and
``(3) the maximum credit will be equal to the
royalty value owed to the State or county that is a
party to the contract and the electricity received will
serve as the royalty payment from the Federal
Government to that entity.''.
(b) Disposal of Moneys From Sales, Bonuses, Royalties, and
Rents.--Section 20 of the Geothermal Steam Act of 1970 (30
U.S.C. 1019) is amended to read as follows:
``SEC. 20. DISPOSAL OF MONEYS FROM SALES, BONUSES, RENTALS, AND
ROYALTIES.
``(a) In General.--Except with respect to lands in the
State of Alaska, all monies received by the United States from
sales, bonuses, rentals, and royalties under this Act shall be
paid into the Treasury of the United States. Of amounts
deposited under this subsection, subject to the provisions of
subsection (b) of section 35 of the Mineral Leasing Act (30
U.S.C. 191(b)) and section 5(a)(2) of this Act--
``(1) 50 percent shall be paid to the State within
the boundaries of which the leased lands or geothermal
resources are or were located; and
``(2) 25 percent shall be paid to the County within
the boundaries of which the leased lands or geothermal
resources are or were located.
``(b) Use of Payments.--Amounts paid to a State or county
under subsection (a) shall be used consistent with the terms of
section 35 of the Mineral Leasing Act (30 U.S.C. 191).''.
(c) Near-Term Production Incentive for Existing Leases.--
(1) In general.--Notwithstanding section 5(a) of
the Geothermal Steam Act of 1970, the royalty required
to be paid shall be 50 percent of the amount of the
royalty otherwise required, on any lease issued before
the date of enactment of this Act that does not convert
to new royalty terms under subsection (e)--
(A) with respect to commercial production
of energy from a facility that begins such
production in the 6-year period beginning on
the date of enactment of this Act; or
(B) on qualified expansion geothermal
energy.
(2) 4-year application.--Paragraph (1) applies only
to new commercial production of energy from a facility
in the first 4 years of such production.
(d) Definition of Qualified Expansion Geothermal Energy.--
In this section, the term ``qualified expansion geothermal
energy'' means geothermal energy produced from a generation
facility for which--
(1) the production is increased by more than 10
percent as a result of expansion of the facility
carried out in the 6-year period beginning on the date
of enactment of this Act; and
(2) such production increase is greater than 10
percent of the average production by the facility
during the 5-year period preceding the expansion of the
facility (as such average is adjusted to reflect any
trend in changes in production during that period).
(e) Royalty Under Existing Leases.--
(1) In general.--Any lessee under a lease issued
under the Geothermal Steam Act of 1970 (30 U.S.C. 1001
et seq.) before the date of enactment of this Act may,
within the time period specified in paragraph (2),
submit to the Secretary of the Interior a request to
modify the terms of the lease relating to payment of
royalties to provide--
(A) in the case of a lease that meets the
requirements of subsection (b) of section 5 of
the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by section 223), that
royalties be based on the schedule of fees
established under that section; and
(B) in the case of any other lease, that
royalties be computed on a percentage of the
gross proceeds from the sale of electricity, at
a royalty rate that is expected to yield total
royalty payments equivalent to payments that
would have been received for comparable
production under the royalty rate in effect for
the lease before the date of enactment of this
subsection.
(2) Timing.--A request for a modification under
paragraph (1) shall be submitted to the Secretary of
the Interior by the date that is not later than--
(A) in the case of a lease for direct use,
18 months after the effective date of the
schedule of fees established by the Secretary
of the Interior under section 5 of the
Geothermal Steam Act of 1970 (30 U.S.C. 1004);
or
(B) in the case of any other lease, 18
months after the effective date of the final
regulation issued under subsection (a).
(3) Application of modification.--If the lessee
requests modification of a lease under paragraph (1)--
(A) the Secretary of the Interior shall,
within 180 days after the receipt of the
request for modification, modify the lease to
comply with--
(i) in the case of a lease for
direct use, the schedule of fees
established by the Secretary under
section 5 of the Geothermal Steam Act
of 1970 (30 U.S.C. 1004); or
(ii) in the case of any other
lease, the royalty for the lease
established under paragraph (1)(B); and
(B) the modification shall apply to any use
of geothermal resources to which subsection (a)
applies that occurs after the date of the
modification.
(4) Consultation.--The Secretary of the Interior
shall consult with the State and local governments
affected by any proposed changes in lease royalty terms
under this subsection.
SEC. 225. COORDINATION OF GEOTHERMAL LEASING AND PERMITTING ON FEDERAL
LANDS.
(a) In General.--Not later than 180 days after the date of
enactment of this section, the Secretary of the Interior and
the Secretary of Agriculture shall enter into andsubmit to
Congress a memorandum of understanding in accordance with this section,
the Geothermal Steam Act of 1970 (as amended by this Act), and other
applicable laws, regarding coordination of 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) establish an administrative procedure for
processing geothermal lease applications, including
lines of authority, steps in application processing,
and time limits for application procession;
(2) establish a 5-year program for geothermal
leasing of lands in the National Forest System, and a
process for updating that program every 5 years; and
(3) establish a program for reducing the backlog of
geothermal lease application pending on January 1,
2005, by 90 percent within the 5-year period beginning
on the date of enactment of this Act, including, as
necessary, by issuing leases, rejecting lease
applications for failure to comply with the provisions
of the regulations under which they were filed, or
determining that an original applicant (or the
applicant's assigns, heirs, or estate) is no longer
interested in pursuing the lease application.
(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. 226. ASSESSMENT OF GEOTHERMAL ENERGY POTENTIAL.
Not later than 3 years after the date of enactment of this
Act and thereafter as the availability of data and developments
in technology warrants, the Secretary of the Interior, acting
through the Director of the United States Geological Survey and
in cooperation with the States, shall--
(1) update the Assessment of Geothermal Resources
made during 1978; and
(2) submit to Congress the updated assessment.
SEC. 227. COOPERATIVE OR UNIT PLANS.
Section 18 of the Geothermal Steam Act of 1970 (30 U.S.C.
1017) is amended to read as follows:
``SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS.
``(a) Adoption of Units by Lessees.--
``(1) In general.--For the purpose of more properly
conserving the natural resources of any geothermal
reservoir, field, or like area, or any part thereof
(whether or not any part of the geothermal reservoir,
field, or like area, is subject to any cooperative plan
of development or operation (referred to in this
section as a `unit agreement')), lessees thereof and
their representatives may unite with each other, or
jointly or separately with others, in collectively
adopting and operating under a unit agreement for the
reservoir, field, or like area, or any part thereof,
including direct use resources, if determined and
certified by the Secretary to be necessary or advisable
in the public interest.
``(2) Majority interest of single leases.--A
majority interest of owners of any single lease shall
have the authority to commit the lease to a unit
agreement.
``(3) Initiative of secretary.--The Secretary may
also initiate the formation of a unit agreement, or
require an existing Federal lease to commit to a unit
agreement, if in the public interest.
``(4) Modification of lease requirements by
secretary.--
``(A) In general.--The Secretary may, in
the discretion of the Secretary and with the
consent of the holders of leases involved,
establish, alter, change, or revoke rates of
operations (including drilling, operations,
production, and other requirements) of the
leases and make conditions with respect to the
leases, with the consent of the lessees, in
connection with the creation and operation of
any such unit agreement as the Secretary may
consider necessary or advisable to secure the
protection of the public interest.
``(B) Unlike terms or rates.--Leases with
unlike lease terms or royalty rates shall not
be required to be modified to be in the same
unit.
``(b) Requirement of Plans Under New Leases.--The Secretary
may--
``(1) provide that geothermal leases issued under
this Act shall contain a provision requiring the lessee
to operate under a unit agreement; and
``(2) prescribe the unit agreement under which the
lessee shall operate, which shall adequately protect
the rights of all parties in interest, including the
United States.
``(c) Modification of Rate of Prospecting, Development, and
Production.--The Secretary may require that any unit agreement
authorized by this section that applies to land owned by the
United States contain a provision under which authority is
vested in the Secretary, or any person, committee, or State or
Federal officer or agency as may be designated in the unit
agreement to alter or modify, from time to time, the rate of
prospecting and development and the quantity and rate of
production under the unit agreement.
``(d) Exclusion From Determination of Holding or Control.--
Any land that is subject to a unit agreement approved or
prescribed by the Secretary under this section shall not be
considered in determining holdings or control under section 7.
``(e) Pooling of Certain Land.--If separate tracts of land
cannot be independently developed and operated to use
geothermal resources pursuant to any section of this Act--
``(1) the land, or a portion of the land, may be
pooled with other land, whether or not owned by the
United States, for purposes of development and
operation under a communitization agreement providing
for an apportionment of production or royalties among
the separate tracts of land comprisingthe production
unit, if the pooling is determined by the Secretary to be in the public
interest; and
``(2) operation or production pursuant to the
communitization agreement shall be treated as operation
or production with respect to each tract of land that
is subject to the communitization agreement.
``(f) Unit Agreement Review.--
``(1) In general.--Not later than 5 years after the
date of approval of any unit agreement and at least
every 5 years thereafter, the Secretary shall--
``(A) review each unit agreement; and
``(B) after notice and opportunity for
comment, eliminate from inclusion in the unit
agreement any land that the Secretary
determines is not reasonably necessary for unit
operations under the unit agreement.
``(2) Basis for elimination.--The elimination
shall--
``(A) be based on scientific evidence; and
``(B) occur only if the elimination is
determined by the Secretary to be for the
purpose of conserving and properly managing the
geothermal resource.
``(3) Extension.--Any land eliminated under this
subsection shall be eligible for an extension under
section 6(g) if the land meets the requirements for the
extension.
``(g) Drilling or Development Contracts.--
``(1) In general.--The Secretary may, on such
conditions as the Secretary may prescribe, approve
drilling or development contracts made by 1 or more
lessees of geothermal leases, with 1 or more persons,
associations, or corporations if, in the discretion of
the Secretary, the conservation of natural resources or
the public convenience or necessity may require or the
interests of the United States may be best served by
the approval.
``(2) Holdings or control.--Each lease operated
under an approved drilling or development contract, and
interest under the contract, shall be excepted in
determining holdings or control under section 7.
``(h) Coordination With State Governments.--The Secretary
shall coordinate unitization and pooling activities with
appropriate State agencies.''.
SEC. 228. ROYALTY ON BYPRODUCTS.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by section 223(a)) is further amended in
subsection (a) by striking paragraph (2) and inserting the
following:
``(2) a royalty on any byproduct that is a mineral
specified in the first section of the Mineral Leasing
Act (30 U.S.C. 181), and that is derived from
production under the lease, at the rate of the royalty
that applies under that Act to production of the
mineral under a lease under that Act;''.
SEC. 229. AUTHORITIES OF SECRETARY TO READJUST TERMS, CONDITIONS,
RENTALS, AND ROYALTIES.
Section 8(b) of the Geothermal Steam Act of 1970 (30 U.S.C.
1006) is amended in the second sentence by striking ``period,
and in no event'' and all that follows through the end of the
sentence and inserting ``period''.
SEC. 230. CREDITING OF RENTAL TOWARD ROYALTY.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by sections 223 and 224) is further amended--
(1) in subsection (a)(2) by inserting ``and'' after
the semicolon at the end;
(2) in subsection (a)(3) by striking ``; and'' and
inserting a period;
(3) by striking paragraph (4) of subsection (a);
and
(4) by adding at the end the following:
``(e) Crediting of Rental Toward Royalty.--Any annual
rental under this section that is paid with respect to a lease
before the first day of the year for which the annual rental is
owed shall be credited to the amount of royalty that is
required to be paid under the lease for that year.''.
SEC. 231. LEASE DURATION AND WORK COMMITMENT REQUIREMENTS.
Section 6 of the Geothermal Steam Act of 1970 (30 U.S.C.
1005) is amended--
(1) by striking so much as precedes subsection (c),
and striking subsections (e), (g), (h), (i), and (j);
(2) by redesignating subsections (c), (d), and (f)
in order as subsections (g), (h), and (i); and
(3) by inserting before subsection (g), as so
redesignated, the following:
``SEC. 6. LEASE TERM AND WORK COMMITMENT REQUIREMENTS.
``(a) In General.--
``(1) Primary term.--A geothermal lease shall be
for a primary term of 10 years.
``(2) Initial extension.--The Secretary shall
extend the primary term of a geothermal lease for 5
years if, for each year after the tenth year of the
lease--
``(A) the Secretary determined under
subsection (b) that the lessee satisfied the
work commitment requirements that applied to
the lease for that year; or
``(B) the lessee paid in annual payments
accordance with subsection (c).
``(3) Additional extension.--The Secretary shall
extend the primary term of a geothermal lease (after an
initial extension under paragraph (2)) for an
additional 5 years if, for each year of the initial
extension under paragraph (2), the Secretary determined
under subsection (b) that the lessee satisfied the
minimum work requirements that applied to the lease for
that year.
``(b) Requirement to Satisfy Annual Minimum Work
Requirement.--
``(1) In general.--The lessee for a geothermal
lease shall, for each year after the tenth year of the
lease, satisfy minimum work requirements prescribed by
the Secretary that apply to the lease for that year.
``(2) Prescription of minimum work requirements.--
The Secretary shall issue regulations prescribing
minimum work requirements for geothermal leases, that--
``(A) establish a geothermal potential; and
``(B) if a geothermal potential has been
established, confirm the existence of
producible geothermal resources.
``(c) Payments in Lieu of Minimum Work Requirements.--In
lieu of the minimum work requirements set forth in subsection
(b)(2), the Secretary shall by regulation establish minimum
annual payments which may be made by the lessee for a limited
number of years that the Secretary determines will not impair
achieving diligent development of the geothermal resource, but
in no event shall the number of years exceed the duration of
the extension period provided in subsection (a).
``(d) Transition Rules for Leases Issued Prior to Enactment
of Energy Policy Act of 2005.--The Secretary shall by
regulation establish transition rules for leases issued before
the date of the enactment of this subsection, including terms
under which a lease that is near the end of its term on the
date of enactment of this subsection may be extended for up to
2 years--
``(1) to allow achievement of production under the
lease; or
``(2) to allow the lease to be included in a
producing unit.
``(e) Geothermal Lease Overlying Mining Claim.--
``(1) Exemption.--The lessee for a geothermal lease
of an area overlying an area subject to a mining claim
for which a plan of operations has been approved by the
relevant Federal land management agency is exempt from
annual work requirements established under this Act, if
development of the geothermal resource subject to the
lease would interfere with the mining operations under
such claim.
``(2) Termination of exemption.--An exemption under
this paragraph expires upon the termination of the
mining operations.
``(f) Termination of Application of Requirements.--Minimum
work requirements prescribed under this section shall not apply
to a geothermal lease after the date on which the geothermal
resource is utilized under the lease in commercial
quantities.''.
SEC. 232. ADVANCED ROYALTIES REQUIRED FOR CESSATION OF PRODUCTION.
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C.
1004) (as amended by sections 223, 224, and 230) is further
amended by adding at the end the following:
``(f) Advanced Royalties Required for Cessation of
Production.--
``(1) In general.--Subject to paragraphs (2) and
(3), if, at any time after commercial production under
a lease is achieved, production ceases for any reason,
the lease shall remain in full force and effect for a
period of not more than an aggregate number of 10 years
beginning on the date production ceases, if, during the
period in which production is ceased, the lessee pays
royalties in advance at the monthly average rate at
which the royalty was paid during the period of
production.
``(2) Reduction.--The amount of any production
royalty paid for any year shall be reduced (but not
below 0) by the amount of any advanced royalties paid
under the lease to the extent that the advance
royalties have not been used to reduce production
royalties for a prior year.
``(3) Exceptions.--Paragraph (1) shall not apply if
the cessation in production is required or otherwise
caused by--
``(A) the Secretary;
``(B) the Secretary of the Air Force;
``(C) the Secretary of the Army;
``(D) the Secretary of the Navy;
``(E) a State or a political subdivision of
a State; or
``(F) a force majeure.''.
SEC. 233. ANNUAL RENTAL.
(a) Annual Rental Rate.--Section 5 of the Geothermal Steam
Act of 1970 (30 U.S.C. 1004) (as amended by section 223(a)) is
further amended in subsection (a) by striking paragraph (3) and
inserting the following:
``(3) payment in advance of an annual rental of not
less than--
``(A) for each of the first through tenth
years of the lease--
``(i) in the case of a lease
awarded in a noncompetitive lease sale,
$1 per acre or fraction thereof; or
``(ii) in the case of a lease
awarded in a competitive lease sale, $2
per acre or fraction thereof for the
first year and $3 per acre or fraction
thereof for each of the second through
10th years; and
``(B) for each year after the 10th year of
the lease, $5 per acre or fraction thereof;''.
(b) Termination of Lease for Failure to Pay Rental.--
Section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 1004)
(as amended by sections 223, 224, 230, and 232) is further
amended by adding at the end the following:
``(g) Termination of Lease for Failure to Pay Rental.--
``(1) In general.--The Secretary shall terminate
any lease with respect to which rental is not paid in
accordance with this Act and the terms of the lease
under which the rental is required, on the expiration
of the 45-day period beginning on the date of the
failure to pay the rental.
``(2) Notification.--The Secretary shall promptly
notify a lessee that has not paid rental required under
the lease that the lease will be terminated at the end
of the period referred to in paragraph (1).
``(3) Reinstatement.--A lease that would otherwise
terminate under paragraph (1) shall not terminate under
that paragraph if the lessee pays to the Secretary,
before the end of the period referred to in paragraph
(1), the amount of rental due plus a late fee equal to
10 percent of the amount.''.
SEC. 234. DEPOSIT AND USE OF GEOTHERMAL LEASE REVENUES FOR 5 FISCAL
YEARS.
(a) Deposit of Geothermal Resources Leases.--
Notwithstanding any other provision of law, amounts received by
the United States in the first 5 fiscal years beginning after
the date of enactment of this Act as rentals, royalties, and
other payments required under leases under the Geothermal Steam
Act of 1970, excluding funds required to be paid to State and
county governments, shall be deposited into a separate account
in the Treasury.
(b) Use of Deposits.--Amounts deposited under subsection
(a) shall be available to the Secretary of the Interior for
expenditure, without further appropriation and without fiscal
year limitation, to implement the Geothermal Steam Act of 1970
and this Act.
(c) Transfer of Funds.--For the purposes of coordination
and processing of geothermal leases and geothermal use
authorizations on Federal land the Secretary of the Interior
may authorize the expenditure or transfer of such funds as are
necessary to the Forest Service.
SEC. 235. ACREAGE LIMITATIONS.
Section 7 of the Geothermal Steam Act of 1970 (30 U.S.C.
1006) is amended--
(1) by striking ``SEC. 7.'', and by inserting
immediately before and above the first paragraph the
following:
``SEC. 7. ACREAGE LIMITATIONS.'';
(2) in the first paragraph--
(A) by striking ``two thousand five hundred
and sixty acres'' and inserting ``5,120
acres''; and
(B) by striking ``twenty thousand four
hundred and eighty acres'' and inserting
``51,200 acres''; and
(3) by striking the second paragraph.
SEC. 236. TECHNICAL AMENDMENTS.
The Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.)
is further amended as follows:
(1) By striking ``geothermal steam and associated
geothermal resources'' each place it appears and
inserting ``geothermal resources''.
(2) Section 2 (30 U.S.C. 1001) is amended by adding
at the end the following:
``(g) `direct use' means utilization of geothermal
resources for commercial, residential, agricultural,
public facilities, or other energy needs other than the
commercial production of electricity; and''.
(3) Section 21 (30 U.S.C. 1020) is amended by
striking ``(a) Within one hundred'' and all that
follows through ``(b) Geothermal'' and inserting
``Geothermal''.
(4) The first section (30 U.S.C. 1001 note) is
amended by striking ``That this'' and inserting the
following:
``SEC. 1. SHORT TITLE.
``This''.
(5) Section 2 (30 U.S.C. 1001) is amended by
striking ``SEC. 2. As'' and inserting the following:
``SEC. 2. DEFINITIONS.
``As''.
(6) Section 3 (30 U.S.C. 1002) is amended by
striking ``SEC. 3. Subject'' and inserting the
following:
``SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.
``Subject''.
(7) Section 5 (30 U.S.C. 1004) is further amended
by striking ``SEC. 5.'', and by inserting immediately
before and above subsection (a) the following:
``SEC. 5. RENTS AND ROYALTIES.''.
(8) Section 8 (30 U.S.C. 1007) is amended by
striking ``SEC. 8. (a) The'' and inserting the
following:
``SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.
``(a) The''.
(9) Section 9 (30 U.S.C. 1008) is amended by
striking ``SEC. 9. If '' and inserting the following:
``SEC. 9. BYPRODUCTS.
``If ''.
(10) Section 10 (30 U.S.C. 1009) is amended by
striking ``SEC. 10. The'' and inserting the following:
``SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.
``The''.
(11) Section 11 (30 U.S.C. 1010) is amended by
striking ``SEC. 11. The'' and inserting the following:
``SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.
``The''.
(12) Section 12 (30 U.S.C. 1011) is amended by
striking ``SEC. 12. Leases'' and inserting the
following:
``SEC. 12. TERMINATION OF LEASES.
``Leases''.
(13) Section 13 (30 U.S.C. 1012) is amended by
striking ``SEC. 13. The'' and inserting the following:
``SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.
``The''.
(14) Section 14 (30 U.S.C. 1013) is amended by
striking ``SEC. 14. Subject'' and inserting the
following:
``SEC. 14. SURFACE LAND USE.
``Subject''.
(15) Section 15 (30 U.S.C. 1014) is amended by
striking ``SEC. 15. (a) Geothermal'' and inserting the
following:
``SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.
``(a) Geothermal''.
(16) Section 16 (30 U.S.C. 1015) is amended by
striking ``SEC. 16. Leases'' and inserting the
following:
``SEC. 16. REQUIREMENT FOR LESSEES.
``Leases''.
(17) Section 17 (30 U.S.C. 1016) is amended by
striking ``SEC. 17. Administration'' and inserting the
following:
``SEC. 17. ADMINISTRATION.
``Administration''.
(18) Section 19 (30 U.S.C. 1018) is amended by
striking ``SEC. 19. Upon'' and inserting the following:
``SEC. 19. DATA FROM FEDERAL AGENCIES.
``Upon''.
(19) Section 21 (30 U.S.C. 1020) is further amended
by striking ``SEC. 21.'', and by inserting immediately
before and above the remainder of that section the
following:
``SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL
RIGHTS.''.
(20) Section 22 (30 U.S.C. 1021) is amended by
striking ``SEC. 22. Nothing'' and inserting the
following:
``SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.
``Nothing''.
(21) Section 23 (30 U.S.C. 1022) is amended by
striking ``SEC. 23. (a) All'' and inserting the
following:
``SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.
``(a) All''.
(22) Section 24 (30 U.S.C. 1023) is amended by
striking ``SEC. 24. The'' and inserting the following:
``SEC. 24. RULES AND REGULATIONS.
``The''.
(23) Section 25 (30 U.S.C. 1024) is amended by
striking ``SEC. 25. As'' and inserting the following:
``SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.
``As''.
(24) Section 26 is amended by striking ``SEC. 26.
The'' and inserting the following:
``SEC. 26. AMENDMENT.
``The''.
(25) Section 27 (30 U.S.C. 1025) is amended by
striking ``SEC. 27. The'' and inserting the following:
``SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.
``The''.
(26) Section 28 (30 U.S.C. 1026) is amended by
striking ``SEC. 28. (a)(1) The'' and inserting the
following:
``SEC. 28. SIGNIFICANT THERMAL FEATURES.
``(a)(1) The''.
(27) Section 29 (30 U.S.C. 1027) is amended by
striking ``SEC. 29. The'' and inserting the following:
``SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.
``The''.
SEC. 237. INTERMOUNTAIN WEST GEOTHERMAL CONSORTIUM.
(a) Participation Authorized.--The Secretary, acting
through the Idaho National Laboratory, may participate in a
consortium described in subsection (b) to address science and
science policy issues surrounding the expanded discovery and
use of geothermal energy, including from geothermal resources
on public lands.
(b) Members.--The consortium referred to in subsection (a)
shall--
(1) be known as the ``Intermountain West Geothermal
Consortium'';
(2) be a regional consortium of institutions and
government agencies that focuses on building
collaborative efforts among the universities in the
State of Idaho, other regional universities, State
agencies, and the Idaho National Laboratory;
(3) include Boise State University, the University
of Idaho (including the Idaho Water Resources Research
Institute), the Oregon Institute of Technology, the
Desert Research Institute with the University and
Community College System of Nevada, and the Energy and
Geoscience Institute at the University of Utah;
(4) be hosted and managed by Boise State
University; and
(5) have a director appointed by Boise State
University, and associate directors appointed by each
participating institution.
(c) Financial Assistance.--The Secretary, acting through
the Idaho National Laboratory and subject to the availability
of appropriations, will provide financial assistance to Boise
State University for expenditure under contracts with members
of the consortium to carry out the activities of the
consortium.
Subtitle C--Hydroelectric
SEC. 241. 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 and any party to the proceeding shall be entitled to
a determination on the record, after opportunity for an agency
trial-type hearing of no more than 90 days, on any disputed
issues of material fact with respect to such conditions. All
disputed issues of material fact raised by any party shall be
determined in a single trial-type hearing to be conducted by
the relevant resource agency in accordance with the regulations
promulgated under this subsection and within the time frame
established by the Commission for each license proceeding.
Within 90 days of the date of enactment of the Energy Policy
Act of 2005, the Secretaries of the Interior, Commerce, and
Agriculture shall establish jointly, by rule, the procedures
for such expedited trial-type hearing, including the
opportunity to undertake discovery and cross-examine witnesses,
in consultation with the Federal Energy Regulatory
Commission.''.
(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 and any party to the
proceeding shall be entitled to a determination on the record,
after opportunity for an agency trial-type hearing of no more
than 90 days, on any disputed issues of material fact with
respect to such fishways. All disputed issues of material fact
raised by any party shall be determined in a single trial-type
hearing to be conducted by the relevant resource agency in
accordance with the regulations promulgated under this
subsection and within the time frame established by the
Commission for each license proceeding. Within 90 days of the
date of enactment of the Energy Policy Act of 2005, the
Secretaries of the Interior, Commerce, and Agriculture shall
establish jointly, by rule, the procedures for such expedited
trial-type hearing, including the opportunity to undertake
discovery and cross-examine witnesses, in consultation with the
Federal Energy Regulatory Commission.''.
(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 or any other
party to the license proceeding 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, any other party to the proceeding, 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, as compared to the condition
initially by the Secretary--
``(i) cost significantly less to implement;
or
``(ii) result in improved operation of the
project works for electricity production.
``(3) In making a determination under paragraph (2), the
Secretary shall consider evidence provided for the record by
any party to a licensing proceeding, or otherwise available to
the Secretary, including any evidence provided by the
Commission, on the implementation costs or operational impacts
for electricity production of a proposed alternative.
``(4) 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.
``(5) If the Commission finds that the Secretary's final
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
any other party to the license proceeding may propose an
alternative to such prescription to construct, maintain, or
operate 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 license applicant, any
other party to the proceeding, or otherwise available to the
Secretary, that such alternative--
``(A) will be no less protective than the fishway
initially prescribed by the Secretary; and
``(B) will either, as compared to the fishway
initially prescribed by the Secretary--
``(i) cost significantly less to implement;
or
``(ii) result in improved operation of the
project works for electricity production.
``(3) In making a determination under paragraph (2), the
Secretary shall consider evidence provided for the record by
any party to a licensing proceeding, or otherwise available to
the Secretary, including any evidence provided by the
Commission, on the implementation costs or operational impacts
for electricity production of a proposed alternative.
``(4) 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 prescription 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.
``(5) If the Commission finds that the Secretary's final
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.''.
SEC. 242. HYDROELECTRIC PRODUCTION INCENTIVES.
(a) Incentive Payments.--For electric energy generated and
sold by a qualified hydroelectric 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.
(b) Definitions.--For purposes of this section:
(1) Qualified hydroelectric facility.--The term
``qualified hydroelectric facility'' means a turbine or
other generating device owned or solely operated by a
non-Federal entity which generates hydroelectric energy
for sale and which is added to an existing dam or
conduit.
(2) Existing dam or conduit.--The term ``existing
dam or conduit'' means any dam or conduit the
construction of which was completed before the date of
the enactment of this section and which does not
require any construction or enlargement of impoundment
or diversion structures (other than repair or
reconstruction) in connection with the installation of
a turbine or other generating device.
(3) Conduit.--The term ``conduit'' has the same
meaning as when used in section 30(a)(2) of the Federal
Power Act (16 U.S.C. 823a(a)(2)).
The terms defined in this subsection shall apply without regard
to the hydroelectric kilowatt capacity of the facility
concerned, without regard to whether the facility uses a dam
owned by a governmental or nongovernmental entity, and without
regard to whether the facility begins operation on or after the
date of the enactment of this section.
(c) Eligibility Window.--Payments may be made under this
section only for electric energy generated from a qualified
hydroelectric facility which begins operation during the period
of 10 fiscal years beginning with the first full fiscal year
occurring after the date of enactment of this subtitle.
(d) Incentive Period.--A qualified hydroelectric facility
may receive payments under this section for a period of 10
fiscal years (referred to in this section as the ``incentive
period''). Such period shall begin with the fiscal year in
which electric energy generated from the facility is first
eligible for such payments.
(e) Amount of Payment.--
(1) In general.--Payments made by the Secretary
under this section to the owner or operator of a
qualified hydroelectric facility shall be based on the
number of kilowatt hours of hydroelectric energy
generated by the facility during the incentive period.
For any such facility, the amount of such payment shall
be 1.8 cents per kilowatt hour (adjusted as provided in
paragraph (2)), subject to the availability of
appropriations under subsection (g), except that no
facility may receive more than $750,000 in 1 calendar
year.
(2) Adjustments.--The amount of the payment made to
any person under this section as provided in paragraph
(1) shall be adjusted for inflation for each fiscal
year beginning after calendar year 2005 in the same
manner as provided in the provisions of section
29(d)(2)(B) of the Internal Revenue Code of 1986,
except that in applying such provisions the calendar
year 2005 shall be substituted for calendar year 1979.
(f) Sunset.--No payment may be made under this section to
any qualified hydroelectric facility after the expiration of
the period of 20 fiscal years beginning with the first full
fiscal year occurring after the date of enactment of this
subtitle, and no payment may be made under this section to any
such facility after a payment has been made with respect to
such facility for a period of 10 fiscal years.
(g) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out the purposes
of this section $10,000,000 for each of the fiscal years 2006
through 2015.
SEC. 243. HYDROELECTRIC EFFICIENCY IMPROVEMENT.
(a) Incentive Payments.--The Secretary shall make incentive
payments to the owners or operators of hydroelectric facilities
at existing dams to be used to make capital improvements in the
facilities that are directly related to improving the
efficiency of such facilities by at least 3 percent.
(b) Limitations.--Incentive payments under this section
shall not exceed 10 percent of the costs of the capital
improvement concerned and not more than 1 payment may be made
with respect to improvements at a single facility. No payment
in excess of $750,000 may be made with respect to improvements
at a single facility.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section not more than
$10,000,000 for each of the fiscal years 2006 through 2015.
SEC. 244. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.
Section 32 of the Federal Power Act (16 U.S.C. 823c) is
amended--
(1) in subsection (a)(3)(C), by inserting ``except
as provided in subsection (j),'' before ``conditions'';
and
(2) by adding at the end the following:
``(j) Fish and Wildlife.--If the State of Alaska determines
that a recommendation under subsection (a)(3)(C) is
inconsistent with paragraphs (1) and (2) of subsection (a), the
State of Alaska may decline to adopt all or part of the
recommendations in accordance with the procedures established
under section 10(j)(2).''.
SEC. 245. FLINT CREEK HYDROELECTRIC PROJECT.
(a) Extension of Time.--Notwithstanding the time period
specified in section 5 of the Federal Power Act (16 U.S.C. 798)
that would otherwise apply to the Federal Energy Regulatory
Commission (referred to in this sectionas the ``Commission'')
project numbered 12107, the Commission shall--
(1) if the preliminary permit is in effect on the
date of enactment of this Act, extend the preliminary
permit for a period of 3 years beginning on the date on
which the preliminary permit expires; or
(2) if the preliminary permit expired before the
date of enactment of this Act, on request of the
permittee, reinstate the preliminary permit for an
additional 3-year period beginning on the date of
enactment of this Act.
(b) Limitation on Certain Fees.--Notwithstanding section
10(e)(1) of the Federal Power Act (16 U.S.C. 803(e)(1)) or any
other provision of Federal law providing for the payment to the
United States of charges for the use of Federal land for the
purposes of operating and maintaining a hydroelectric
development licensed by the Commission, any political
subdivision of the State of Montana that holds a Commission
license for the Commission project numbered 12107 in Granite
and Deer Lodge Counties, Montana, shall be required to pay to
the United States for the use of that land for each year during
which the political subdivision continues to hold the license
for the project, the lesser of--
(1) $25,000; or
(2) such annual charge as the Commission or any
other department or agency of the Federal Government
may assess.
SEC. 246. SMALL HYDROELECTRIC POWER PROJECTS.
Section 408(a)(6) of the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by striking
``April 20, 1977'' and inserting ``July 22, 2005''.
Subtitle D--Insular Energy
SEC. 251. INSULAR AREAS ENERGY SECURITY.
Section 604 of the Act entitled ``An Act to authorize
appropriations for certain insular areas of the United States,
and for other purposes'', approved December 24, 1980 (48 U.S.C.
1492), is amended--
(1) in subsection (a)(4) by striking the period and
inserting a semicolon;
(2) by adding at the end of subsection (a) the
following new paragraphs:
``(5) electric power transmission and distribution
lines in insular areas are inadequate to withstand
damage caused by the hurricanes and typhoons which
frequently occur in insular areas and such damage often
costs millions of dollars to repair; and
``(6) the refinement of renewable energy
technologies since the publication of the 1982
Territorial Energy Assessment prepared pursuant to
subsection (c) reveals the need to reassess the state
of energy production, consumption, infrastructure,
reliance on imported energy, opportunities for energy
conservation and increased energy efficiency, and
indigenous sources in regard to the insular areas.'';
(3) by amending subsection (e) to read as follows:
``(e)(1) The Secretary of the Interior, in consultation
with the Secretary of Energy and the head of government of each
insular area, shall update the plans required under subsection
(c) by--
``(A) updating the contents required by subsection
(c);
``(B) drafting long-term energy plans for such
insular areas with the objective of reducing, to the
extent feasible, their reliance on energy imports by
the year 2012, increasing energy conservation and
energy efficiency, and maximizing, to the extent
feasible, use of indigenous energy sources; and
``(C) drafting long-term energy transmission line
plans for such insular areas with the objective that
the maximum percentage feasible of electric power
transmission and distribution lines in each insular
area be protected from damage caused by hurricanes and
typhoons.
``(2) In carrying out this subsection, the Secretary of
Energy shall identify and evaluate the strategies or projects
with the greatest potential for reducing the dependence on
imported fossil fuels as used for the generation of
electricity, including strategies and projects for--
``(A) improved supply-side efficiency of
centralized electrical generation, transmission, and
distribution systems;
``(B) improved demand-side management through--
``(i) the application of established
standards for energy efficiency for appliances;
``(ii) the conduct of energy audits for
business and industrial customers; and
``(iii) the use of energy savings
performance contracts;
``(C) increased use of renewable energy,
including--
``(i) solar thermal energy for electric
generation;
``(ii) solar thermal energy for water
heating in large buildings, such as hotels,
hospitals, government buildings, and
residences;
``(iii) photovoltaic energy;
``(iv) wind energy;
``(v) hydroelectric energy;
``(vi) wave energy;
``(vii) energy from ocean thermal
resources, including ocean thermal-cooling for
community air conditioning;
``(viii) water vapor condensation for the
production of potable water;
``(ix) fossil fuel and renewable hybrid
electrical generation systems; and
``(x) other strategies or projects that the
Secretary may identify as having significant
potential; and
``(D) fuel substitution and minimization with
indigenous biofuels, such as coconut oil.
``(3) In carrying out this subsection, for each insular
area with a significant need for distributed generation, the
Secretary of Energy shall identify and evaluate the most
promising strategies and projects described in subparagraphs
(C) and (D) of paragraph (2) for meeting that need.
``(4) In assessing the potential of any strategy or project
under paragraphs (2) and (3), the Secretary of Energy shall
consider--
``(A) the estimated cost of the power or energy to
be produced, including--
``(i) any additional costs associated with
the distribution of the generation; and
``(ii) the long-term availability of the
generation source;
``(B) the capacity of the local electrical utility
to manage, operate, and maintain any project that may
be undertaken; and
``(C) other factors the Secretary of Energy
considers to be appropriate.
``(5) Not later than 1 year after the date of enactment of
this subsection, the Secretary of the Interior shall submit to
the Committee on Energy and Natural Resources of the Senate,
the Committee on Resources of the House of Representatives, and
the Committee on Energy and Commerce of the House of
Representatives, the updated plans for each insular area
required by this subsection.''; and
(4) by amending subsection (g)(4) to read as
follows:
``(4) Power line grants for insular areas.--
``(A) In general.--The Secretary of the
Interior is authorized to make grants to
governments of insular areas of the United
States to carry out eligible projects to
protect electric power transmission and
distribution lines in such insular areas from
damage caused by hurricanes and typhoons.
``(B) Eligible projects.--The Secretary of
the Interior may award grants under
subparagraph (A) only to governments of insular
areas of the United States that submit written
project plans to the Secretary for projects
that meet the following criteria:
``(i) The project is designed to
protect electric power transmission and
distribution lines located in 1 or more
of the insular areas of the United
States from damage caused by hurricanes
and typhoons.
``(ii) The project is likely to
substantially reduce the risk of future
damage, hardship, loss, or suffering.
``(iii) The project addresses 1 or
more problems that have been repetitive
or that pose a significant risk to
public health and safety.
``(iv) The project is not likely to
cost more than the value of the
reduction in direct damage and other
negative impacts that the project is
designed to prevent or mitigate. The
cost benefit analysis required by this
criterion shall be computed on a net
present value basis.
``(v) The project design has taken
into consideration long-term changes to
the areas and persons it is designed to
protect and has manageable future
maintenance and modification
requirements.
``(vi) The project plan includes an
analysis of a range of options to
address the problem it is designed to
prevent or mitigate and a justification
for the selection of the project in
light of that analysis.
``(vii) The applicant has
demonstrated to the Secretary that the
matching funds required by subparagraph
(D) are available.
``(C) Priority.--When making grants under
this paragraph, the Secretary of the Interior
shall give priority to grants for projects
which are likely to--
``(i) have the greatest impact on
reducing future disaster losses; and
``(ii) best conform with plans that
have been approved by the Federal
Government or the government of the
insular area where the project is to be
carried out fordevelopment or hazard
mitigation for that insular area.
``(D) Matching requirement.--The Federal
share of the cost for a project for which a
grant is provided under this paragraph shall
not exceed 75 percent of the total cost of that
project. The non-Federal share of the cost may
be provided in the form of cash or services.
``(E) Treatment of funds for certain
purposes.--Grants provided under this paragraph
shall not be considered as income, a resource,
or a duplicative program when determining
eligibility or benefit levels for Federal major
disaster and emergency assistance.
``(F) Authorization of appropriations.--
There are authorized to be appropriated to
carry out this paragraph $6,000,000 for each
fiscal year beginning after the date of the
enactment of this paragraph.''.
SEC. 252. PROJECTS ENHANCING INSULAR ENERGY INDEPENDENCE.
(a) Project Feasibility Studies.--
(1) In general.--On a request described in
paragraph (2), the Secretary shall conduct a
feasibility study of a project to implement a strategy
or project identified in the plans submitted to
Congress pursuant to section 604 of the Act entitled
``An Act to authorize appropriations for certain
insular areas of the United States, and for other
purposes'', approved December 24, 1980 (48 U.S.C.
1492), as having the potential to--
(A) significantly reduce the dependence of
an insular area on imported fossil fuels; or
(B) provide needed distributed generation
to an insular area.
(2) Request.--The Secretary shall conduct a
feasibility study under paragraph (1) on--
(A) the request of an electric utility
located in an insular area that commits to fund
at least 10 percent of the cost of the study;
and
(B) if the electric utility is located in
the Federated States of Micronesia, the
Republic of the Marshall Islands, or the
Republic of Palau, written support for that
request by the President or the Ambassador of
the affected freely associated state.
(3) Consultation.--The Secretary shall consult with
regional utility organizations in--
(A) conducting feasibility studies under
paragraph (1); and
(B) determining the feasibility of
potential projects.
(4) Feasibility.--For the purpose of a feasibility
study under paragraph (1), a project shall be
determined to be feasible if the project would
significantly reduce the dependence of an insular area
on imported fossil fuels, or provide needed distributed
generation to an insular area, at a reasonable cost.
(b) Implementation.--
(1) In general.--On a determination by the
Secretary (in consultation with the Secretary of the
Interior) that a project is feasible under subsection
(a) and a commitment by an electric utility to operate
and maintain the project, the Secretary may provide
such technical and financial assistance as the
Secretary determines is appropriate for the
implementation of the project.
(2) Regional utility organizations.--In providing
assistance under paragraph (1), the Secretary shall
consider providing the assistance through regional
utility organizations.
(c) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to the Secretary--
(A) $500,000 for each fiscal year for
project feasibility studies under subsection
(a); and
(B) $4,000,000 for each fiscal year for
project implementation under subsection (b).
(2) Limitation of funds received by insular
areas.--No insular area may receive, during any 3-year
period, more than 20 percent of the total funds made
available during that 3-year period under subparagraphs
(A) and (B) of paragraph (1) unless the Secretary
determines that providing funding in excess of that
percentage best advances existing opportunities to meet
the objectives of this section.
TITLE III--OIL AND GAS
Subtitle A--Petroleum Reserve and Home Heating Oil
SEC. 301. 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. 6212 et seq.) is amended--
(1) by striking section 166 (42 U.S.C. 6246) and
inserting the following:
``AUTHORIZATION OF APPROPRIATIONS
``Sec. 166. There are authorized to be appropriated to the
Secretary such sums as are necessary to carry out this part and
part D, to remain available until expended.'';
(2) by striking section 186 (42 U.S.C. 6250e); and
(3) by striking part E (42 U.S.C. 6251).
(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 inserting before section 273 (42 U.S.C.
6283) the following:
``PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS'';
(2) by striking section 273(e) (42 U.S.C. 6283(e));
and
(3) by striking part D (42 U.S.C. 6285).
(c) Technical Amendments.--The table of contents for the
Energy Policy and Conservation Act is amended--
(1) by inserting after the items relating to part C
of title I the following:
``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) Amendment to the Energy Policy and Conservation Act.--
Section 183(b)(1) of the Energy Policy and Conservation Act (42
U.S.C. 6250b(b)(1)) is amended by striking ``by more'' and all
that follows through ``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)''.
(e) Fill Strategic Petroleum Reserve to Capacity.--
(1) In general.--The Secretary shall, as
expeditiously as practicable, without incurring
excessive cost or appreciably affecting the price of
petroleum products to consumers, acquire petroleum in
quantities sufficient to fill the Strategic Petroleum
Reserve to the 1,000,000,000-barrel capacity authorized
under section 154(a) of the Energy Policy and
Conservation Act (42 U.S.C. 6234(a)), in accordance
with the sections 159 and 160 of that Act (42 U.S.C.
6239, 6240).
(2) Procedures.--
(A) Amendment.--Section 160 of the Energy
Policy and Conservation Act (42 U.S.C. 6240) is
amended by inserting after subsection (b) the
following new subsection:
``(c) Procedures.--The Secretary shall develop, with public
notice and opportunity for comment, procedures consistent with
the objectives of this section to acquire petroleum for the
Reserve. Such procedures shall take into account the need to--
``(1) maximize overall domestic supply of crude oil
(including quantities stored in private sector
inventories);
``(2) avoid incurring excessive cost or appreciably
affecting the price of petroleum products to consumers;
``(3) minimize the costs to the Department of the
Interior and the Department of Energy in acquiring such
petroleum products (including foregone revenues to the
Treasury when petroleum products for the Reserve are
obtained through the royalty-in-kind program);
``(4) protect national security;
``(5) avoid adversely affecting current and futures
prices, supplies, and inventories of oil; and
``(6) address other factors that the Secretary
determines to be appropriate.''.
(B) Review of requests for deferrals of
scheduled deliveries.--The procedures developed
under section 160(c) of the Energy Policy and
Conservation Act, as added by subparagraph (A),
shall include procedures and criteria for the
review of requests for the deferrals of
scheduled deliveries.
(C) Deadlines.--The Secretary shall--
(i) propose the procedures required
under the amendment made by
subparagraph (A) not later than 120
days after the date of enactment of
this Act;
(ii) promulgate the procedures not
later than 180 days after the date of
enactment of this Act; and
(iii) comply with the procedures in
acquiring petroleum for the Reserve
effective beginning on the date that is
180 days after the date of enactment of
this Act.
SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE.
Section 713 of the Energy Act of 2000 (Public Law 106-469;
42 U.S.C. 6201 note) is amended by striking ``4'' and inserting
``9''.
SEC. 303. SITE SELECTION.
Not later than 1 year after the date of enactment of this
Act, the Secretary shall complete a proceeding to select, from
sites that the Secretary has previously studied, sites
necessary to enable acquisition by the Secretary of the full
authorized volume of the Strategic Petroleum Reserve. In such
proceeding, the Secretary shall first consider and give
preference to the five sites which the Secretary previously
assessed in the Draft Environmental Impact Statement, DOE/EIS-
0165-D. However, the Secretary in his discretion may select
other sites as proposed by a State where a site has been
previously studied by the Secretary to meet the full authorized
volume of the Strategic Petroleum Reserve.
Subtitle B--Natural Gas
SEC. 311. EXPORTATION OR IMPORTATION OF NATURAL GAS.
(a) Scope of Natural Gas Act.--Section 1(b) of the Natural
Gas Act (15 U.S.C. 717(b)) is amended by inserting ``and to the
importation or exportation of natural gas in foreign commerce
and to persons engaged in such importation or exportation,''
after ``such transportation or sale,''.
(b) Definition.--Section 2 of the Natural Gas Act (15
U.S.C. 717a) is amended by adding at the end the following new
paragraph:
``(11) `LNG terminal' includes all natural gas
facilities located onshore or in State waters that are
used to receive, unload, load, store, transport,
gasify, liquefy, or process natural gas that is
imported to the United States from a foreign country,
exported to a foreign country from the United States,
or transported in interstate commerce by waterborne
vessel, but does not include--
``(A) waterborne vessels used to deliver
natural gas to or from any such facility; or
``(B) any pipeline or storage facility
subject to the jurisdiction of the Commission
under section 7.''.
(c) Authorization for Siting, Construction, Expansion, or
Operation of LNG Terminals.--(1) The title for section 3 of the
Natural Gas Act (15 U.S.C. 717b) is amended by inserting ``;
lng terminals'' after ``exportation or importation of natural
gas''.
(2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) is
amended by adding at the end the following:
``(d) Except as specifically provided in this Act, nothing
in this Act affects the rights of States under--
``(1) the Coastal Zone Management Act of 1972 (16
U.S.C. 1451 et seq.);
``(2) the Clean Air Act (42 U.S.C. 7401 et seq.);
or
``(3) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.).
``(e)(1) The Commission shall have the exclusive authority
to approve or deny an application for the siting, construction,
expansion, or operation of an LNG terminal. Except as
specifically provided in this Act, nothing in this Act is
intended to affect otherwise applicable law related to any
Federal agency's authorities or responsibilities related to LNG
terminals.
``(2) Upon the filing of any application to site,
construct, expand, or operate an LNG terminal, the Commission
shall--
``(A) set the matter for hearing;
``(B) give reasonable notice of the hearing to all
interested persons, including the State commission of
the State in which the LNG terminal is located and, if
not the same, the Governor-appointed State agency
described in section 3A;
``(C) decide the matter in accordance with this
subsection; and
``(D) issue or deny the appropriate order
accordingly.
``(3)(A) Except as provided in subparagraph (B), the
Commission may approve an application described in paragraph
(2), in whole or part, with such modifications and upon such
terms and conditions as the Commission find necessary or
appropriate.
``(B) Before January 1, 2015, the Commission shall not--
``(i) deny an application solely on the basis that
the applicant proposes to use the LNG terminal
exclusively or partially for gas that the applicant or
an affiliate of the applicant will supply to the
facility; or
``(ii) condition an order on--
``(I) a requirement that the LNG terminal
offer service to customers other than the
applicant, or any affiliate of the applicant,
securing the order;
``(II) any regulation of the rates,
charges, terms, or conditions of service of the
LNG terminal; or
``(III) a requirement to file with the
Commission schedules or contracts related to
the rates, charges, terms, or conditions of
service of the LNG terminal.
``(C) Subparagraph (B) shall cease to have effect on
January 1, 2030.
``(4) An order issued for an LNG terminal that also offers
service to customers on an open access basis shallnot result in
subsidization of expansion capacity by existing customers, degradation
of service to existing customers, or undue discrimination against
existing customers as to their terms or conditions of service at the
facility, as all of those terms are defined by the Commission.
``(f)(1) In this subsection, the term `military
installation'--
``(A) means a base, camp, post, range, station,
yard, center, or homeport facility for any ship or
other activity under the jurisdiction of the Department
of Defense, including any leased facility, that is
located within a State, the District of Columbia, or
any territory of the United States; and
``(B) does not include any facility used primarily
for civil works, rivers and harbors projects, or flood
control projects, as determined by the Secretary of
Defense.
``(2) The Commission shall enter into a memorandum of
understanding with the Secretary of Defense for the purpose of
ensuring that the Commission coordinate and consult with the
Secretary of Defense on the siting, construction, expansion, or
operation of liquefied natural gas facilities that may affect
an active military installation.
``(3) The Commission shall obtain the concurrence of the
Secretary of Defense before authorizing the siting,
construction, expansion, or operation of liquefied natural gas
facilities affecting the training or activities of an active
military installation.''.
(d) LNG Terminal State and Local Safety Concerns.--After
section 3 of the Natural Gas Act (15 U.S.C. 717b) insert the
following:
``STATE AND LOCAL SAFETY CONSIDERATIONS
``Sec. 3A. (a) The Commission shall promulgate regulations
on the National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq) pre-filing process within 60 days after the date
of enactment of this section. An applicant shall comply with
pre-filing process required under the National Environmental
Policy Act of 1969 prior to filing an application with the
Commission. The regulations shall require that the pre-filing
process commence at least 6 months prior to the filing of an
application for authorization to construct an LNG terminal and
encourage applicants to cooperate with State and local
officials.
``(b) The Governor of a State in which an LNG terminal is
proposed to be located shall designate the appropriate State
agency for the purposes of consulting with the Commission
regarding an application under section 3. The Commission shall
consult with such State agency regarding State and local safety
considerations prior to issuing an order pursuant to section 3.
For the purposes of this section, State and local safety
considerations include--
``(1) the kind and use of the facility;
``(2) the existing and projected population and
demographic characteristics of the location;
``(3) the existing and proposed land use near the
location;
``(4) the natural and physical aspects of the
location;
``(5) the emergency response capabilities near the
facility location; and
``(6) the need to encourage remote siting.
``(c) The State agency may furnish an advisory report on
State and local safety considerations to the Commission with
respect to an application no later than 30 days after the
application was filed with the Commission. Before issuing an
order authorizing an applicant to site, construct, expand, or
operate an LNG terminal, the Commission shall review and
respond specifically to the issues raised by the State agency
described in subsection (b) in the advisory report. This
subsection shall apply to any application filed after the date
of enactment of the Energy Policy Act of 2005. A State agency
has 30 days after such date of enactment to file an advisory
report related to any applications pending at the Commission as
of such date of enactment.
``(d) The State commission of the State in which an LNG
terminal is located may, after the terminal is operational,
conduct safety inspections in conformance with Federal
regulations and guidelines with respect to the LNG terminal
upon written notice to the Commission. The State commission may
notify the Commission of any alleged safety violations. The
Commission shall transmit information regarding such
allegations to the appropriate Federal agency, which shall take
appropriate action and notify the State commission.
``(e)(1) In any order authorizing an LNG terminal the
Commission shall require the LNG terminal operator to develop
an Emergency Response Plan. The Emergency Response Plan shall
be prepared in consultation with the United States Coast Guard
and State and local agencies and be approved by the Commission
prior to any final approval to begin construction. The Plan
shall include a cost-sharing plan.
``(2) A cost-sharing plan developed under paragraph (1)
shall include a description of any direct cost reimbursements
that the applicant agrees to provide to any State and local
agencies with responsibility for security and safety--
``(A) at the LNG terminal; and
``(B) in proximity to vessels that serve the
facility.''.
SEC. 312. NEW NATURAL GAS STORAGE FACILITIES.
Section 4 of the Natural Gas Act (15 U.S.C. 717c) is
amended by adding at the end the following:
``(f)(1) In exercising its authority under this Act or the
Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et seq.), the
Commission may authorize a natural gas company (or any person
that will be a natural gas company on completion of any
proposed construction) to provide storage and storage-related
services at market-based rates for new storage capacity related
to a specific facility placed in service after the date of
enactment of the Energy Policy Act of 2005, notwithstanding the
fact that the company is unable to demonstrate that the company
lacks market power, if the Commission determines that--
``(A) market-based rates are in the public interest
and necessary to encourage the construction of the
storage capacity in the area needing storage services;
and
``(B) customers are adequately protected.
``(2) The Commission shall ensure that reasonable terms and
conditions are in place to protect consumers.
``(3) If the Commission authorizes a natural gas company to
charge market-based rates under this subsection, the Commission
shall review periodically whether the market-based rate is
just, reasonable, and not unduly discriminatory or
preferential.''.
SEC. 313. PROCESS COORDINATION; HEARINGS; RULES OF PROCEDURE.
(a) In General.--Section 15 of the Natural Gas Act (15
U.S.C. 717n) is amended--
(1) by striking the section heading and inserting
``process coordination; hearings; rules of procedure'';
(2) by redesignating subsections (a) and (b) as
subsections (e) and (f), respectively; and
(3) by striking ``sec. 15.'' and inserting the
following:
``Sec. 15. (a) In this section, the term `Federal
authorization'--
``(1) means any authorization required under
Federal law with respect to an application for
authorization under section 3 or a certificate of
public convenience and necessity under section 7; and
``(2) includes any permits, special use
authorizations, certifications, opinions, or other
approvals as may be required under Federal law with
respect to an application for authorization under
section 3 or a certificate of public convenience and
necessity under section 7.
``(b) Designation as Lead Agency.--
``(1) In general.--The Commission shall act as the
lead agency for the purposes of coordinating all
applicable Federal authorizations and for the purposes
of complying with the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).
``(2) Other agencies.--Each Federal and State
agency considering an aspect of an application for
Federal authorization shall cooperate with the
Commission and comply with the deadlines established by
the Commission.
``(c) Schedule.--
``(1) Commission authority to set schedule.--The
Commission shall establish a schedule for all Federal
authorizations. In establishing the schedule, the
Commission shall--
``(A) ensure expeditious completion of all
such proceedings; and
``(B) comply with applicable schedules
established by Federal law.
``(2) Failure to meet schedule.--If a Federal or
State administrative agency does not complete a
proceeding for an approval that is required for a
Federal authorization in accordance with the schedule
established by the Commission, the applicant may pursue
remedies under section 19(d).
``(d) Consolidated Record.--The Commission shall, with the
cooperation of Federal and State administrative agencies and
officials, maintain a complete consolidated record of all
decisions made or actions taken by the Commission or by a
Federal administrative agency or officer (or State
administrative agency or officer acting under delegated Federal
authority) with respect to any Federal authorization. Such
record shall be the record for--
``(1) appeals or reviews under the Coastal Zone
Management Act of 1972 (16 U.S.C. 1451 et seq.),
provided that the record may be supplemented as
expressly provided pursuant to section 319 of that Act;
or
``(2) judicial review under section 19(d) of
decisions made or actions taken of Federal and State
administrative agencies and officials, provided that,
if the Court determines that the record does not
contain sufficient information, the Court may remand
the proceeding to the Commission for further
development of the consolidated record.''.
(b) Judicial Review.--Section 19 of the Natural Gas Act (15
U.S.C. 717r) is amended by adding at the end the following:
``(d) Judicial Review.--
``(1) In general.--The United States Court of
Appeals for the circuit in which a facility subject to
section 3 or section 7 is proposed to be
constructed,expanded, or operated shall have original and exclusive
jurisdiction over any civil action for the review of an order or action
of a Federal agency (other than the Commission) or State administrative
agency acting pursuant to Federal law to issue, condition, or deny any
permit, license, concurrence, or approval ( hereinafter collectively
referred to as `permit') required under Federal law, other than the
Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et seq.).
``(2) Agency delay.--The United States Court of
Appeals for the District of Columbia shall have
original and exclusive jurisdiction over any civil
action for the review of an alleged failure to act by a
Federal agency (other than the Commission) or State
administrative agency acting pursuant to Federal law to
issue, condition, or deny any permit required under
Federal law, other than the Coastal Zone Management Act
of 1972 (16 U.S.C. 1451 et seq.), for a facility
subject to section 3 or section 7. The failure of an
agency to take action on a permit required under
Federal law, other than the Coastal Zone Management Act
of 1972, in accordance with the Commission schedule
established pursuant to section 15(c) shall be
considered inconsistent with Federal law for the
purposes of paragraph (3).
``(3) Court action.--If the Court finds that such
order or action is inconsistent with the Federal law
governing such permit and would prevent the
construction, expansion, or operation of the facility
subject to section 3 or section 7, the Court shall
remand the proceeding to the agency to take appropriate
action consistent with the order of the Court. If the
Court remands the order or action to the Federal or
State agency, the Court shall set a reasonable schedule
and deadline for the agency to act on remand.
``(4) Commission action.--For any action described
in this subsection, the Commission shall file with the
Court the consolidated record of such order or action
to which the appeal hereunder relates.
``(5) Expedited review.--The Court shall set any
action brought under this subsection for expedited
consideration.''.
SEC. 314. PENALTIES.
(a) Criminal Penalties.--
(1) Natural gas act.--Section 21 of the Natural Gas
Act (15 U.S.C. 717t) is amended--
(A) in subsection (a)--
(i) by striking ``$5,000'' and
inserting ``$1,000,000''; and
(ii) by striking ``two years'' and
inserting ``5 years''; and
(B) in subsection (b), by striking ``$500''
and inserting ``$50,000''.
(2) Natural gas policy act of 1978.--Section 504(c)
of the Natural Gas Policy Act of 1978 (15 U.S.C.
3414(c)) is amended--
(A) in paragraph (1)--
(i) in subparagraph (A), by
striking ``$5,000'' and inserting
``$1,000,000''; and
(ii) in subparagraph (B), by
striking ``two years'' and inserting
``5 years''; and
(B) in paragraph (2), by striking ``$500
for each violation'' and inserting ``$50,000
for each day on which the offense occurs''.
(b) Civil Penalties.--
(1) Natural gas act.--The Natural Gas Act (15
U.S.C. 717 et seq.) is amended--
(A) by redesignating sections 22 through 24
as sections 24 through 26, respectively; and
(B) by inserting after section 21 (15
U.S.C. 717t) the following:
``CIVIL PENALTY AUTHORITY
``Sec. 22. (a) Any person that violates this Act, or any
rule, regulation, restriction, condition, or order made or
imposed by the Commission under authority of this Act, shall be
subject to a civil penalty of not more than $1,000,000 per day
per violation for as long as the violation continues.
``(b) The penalty shall be assessed by the Commission after
notice and opportunity for public hearing.
``(c) In determining the amount of a proposed penalty, the
Commission shall take into consideration the nature and
seriousness of the violation and the efforts to remedy the
violation.''.
(2) Natural gas policy act of 1978.--Section
504(b)(6)(A) of the Natural Gas Policy Act of 1978 (15
U.S.C. 3414(b)(6)(A)) is amended--
(A) in clause (i), by striking ``$5,000''
and inserting ``$1,000,000''; and
(B) in clause (ii), by striking ``$25,000''
and inserting ``$1,000,000''.
SEC. 315. MARKET MANIPULATION.
The Natural Gas Act is amended by inserting after section 4
(15 U.S.C. 717c) the following:
``PROHIBITION ON MARKET MANIPULATION
``Sec. 4A. It shall be unlawful for any entity, directly or
indirectly, to use or employ, in connection with the purchase
or sale of natural gas or the purchase or sale of
transportation services subject to the jurisdiction of the
Commission, any manipulative or deceptive device or contrivance
(as those terms are used in section 10(b) of theSecurities
Exchange Act of 1934 (15 U.S.C. 78j(b))) in contravention of such rules
and regulations as the Commission may prescribe as necessary in the
public interest or for the protection of natural gas ratepayers.
Nothing in this section shall be construed to create a private right of
action.''.
SEC. 316. NATURAL GAS MARKET TRANSPARENCY RULES.
The Natural Gas Act (15 U.S.C. 717 et seq.) is amended by
inserting after section 22 the following:
``NATURAL GAS MARKET TRANSPARENCY RULES
``Sec. 23. (a)(1) The Commission is directed to facilitate
price transparency in markets for the sale or transportation of
physical natural gas in interstate commerce, having due regard
for the public interest, the integrity of those markets, fair
competition, and the protection of consumers.
``(2) The Commission may prescribe such rules as the
Commission determines necessary and appropriate to carry out
the purposes of this section. The rules shall provide for the
dissemination, on a timely basis, of information about the
availability and prices of natural gas sold at wholesale and in
interstate commerce to the Commission, State commissions,
buyers and sellers of wholesale natural gas, and the public.
``(3) The Commission may--
``(A) obtain the information described in paragraph
(2) from any market participant; and
``(B) rely on entities other than the Commission to
receive and make public the information, subject to the
disclosure rules in subsection (b).
``(4) In carrying out this section, the Commission shall
consider the degree of price transparency provided by existing
price publishers and providers of trade processing services,
and shall rely on such publishers and services to the maximum
extent possible. The Commission may establish an electronic
information system if it determines that existing price
publications are not adequately providing price discovery or
market transparency.
``(b)(1) Rules described in subsection (a)(2), if adopted,
shall exempt from disclosure information the Commission
determines would, if disclosed, be detrimental to the operation
of an effective market or jeopardize system security.
``(2) In determining the information to be made available
under this section and the time to make the information
available, the Commission shall seek to ensure that consumers
and competitive markets are protected from the adverse effects
of potential collusion or other anticompetitive behaviors that
can be facilitated by untimely public disclosure of
transaction-specific information.
``(c)(1) Within 180 days of enactment of this section, the
Commission shall conclude a memorandum of understanding with
the Commodity Futures Trading Commission relating to
information sharing, which shall include, among other things,
provisions ensuring that information requests to markets within
the respective jurisdiction of each agency are properly
coordinated to minimize duplicative information requests, and
provisions regarding the treatment of proprietary trading
information.
``(2) Nothing in this section may be construed to limit or
affect the exclusive jurisdiction of the Commodity Futures
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1
et seq.).
``(d)(1) The Commission shall not condition access to
interstate pipeline transportation on the reporting
requirements of this section.
``(2) The Commission shall not require natural gas
producers, processors, or users who have a de minimis market
presence to comply with the reporting requirements of this
section.
``(e)(1) Except as provided in paragraph (2), no person
shall be subject to any civil penalty under this section with
respect to any violation occurring more than 3 years before the
date on which the person is provided notice of the proposed
penalty under section 22(b).
``(2) Paragraph (1) shall not apply in any case in which
the Commission finds that a seller that has entered into a
contract for the transportation or sale of natural gas subject
to the jurisdiction of the Commission has engaged in fraudulent
market manipulation activities materially affecting the
contract in violation of section 4A.''.
SEC. 317. FEDERAL-STATE LIQUEFIED NATURAL GAS FORUMS.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in cooperation and
consultation with the Secretary of Transportation, the
Secretary of Homeland Security, the Federal Energy Regulatory
Commission, and the Governors of the Coastal States, shall
convene not less than 3 forums on liquefied natural gas.
(b) Requirements.--The forums shall--
(1) be located in areas where liquefied natural gas
facilities are under consideration;
(2) be designed to foster dialogue among Federal
officials, State and local officials, the general
public, independent experts, and industry
representatives; and
(3) at a minimum, provide an opportunity for public
education and dialogue on--
(A) the role of liquefied natural gas in
meeting current and future United States energy
supply requirements and demand, in thecontext
of the full range of energy supply options;
(B) the Federal and State siting and
permitting processes;
(C) the potential risks and rewards
associated with importing liquefied natural
gas;
(D) the Federal safety and environmental
requirements (including regulations) applicable
to liquefied natural gas;
(E) prevention, mitigation, and response
strategies for liquefied natural gas hazards;
and
(F) additional issues as appropriate.
(c) Purpose.--The purpose of the forums shall be to
identify and develop best practices for addressing the issues
and challenges associated with liquefied natural gas imports,
building on existing cooperative efforts.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 318. PROHIBITION OF TRADING AND SERVING BY CERTAIN INDIVIDUALS.
Section 20 of the Natural Gas Act (15 U.S.C. 717s) is
amended by adding at the end the following:
``(d) In any proceedings under subsection (a), the court
may prohibit, conditionally or unconditionally, and permanently
or for such period of time as the court determines, any
individual who is engaged or has engaged in practices
constituting a violation of section 4A (including related rules
and regulations) from--
``(1) acting as an officer or director of a natural
gas company; or
``(2) engaging in the business of--
``(A) the purchasing or selling of natural
gas; or
``(B) the purchasing or selling of
transmission services subject to the
jurisdiction of the Commission.''.
Subtitle C--Production
SEC. 321. OUTER CONTINENTAL SHELF PROVISIONS.
(a) Storage on the Outer Continental Shelf.--Section
5(a)(5) of the Outer Continental Shelf Lands Act (43 U.S.C.
1334(a)(5)) is amended by inserting ``from any source'' after
``oil and gas''.
(b) Natural Gas Defined.--Section 3(13) of the Deepwater
Port Act of 1974 (33 U.S.C. 1502(13)) is amended by adding at
the end before the semicolon the following: ``, natural gas
liquids, liquefied petroleum gas, and condensate recovered from
natural gas''.
SEC. 322. HYDRAULIC FRACTURING.
Paragraph (1) of section 1421(d) of the Safe Drinking Water
Act (42 U.S.C. 300h(d)) is amended to read as follows:
``(1) Underground injection.--The term `underground
injection'--
``(A) means the subsurface emplacement of
fluids by well injection; and
``(B) excludes--
``(i) the underground injection of
natural gas for purposes of storage;
and
``(ii) the underground injection of
fluids or propping agents (other than
diesel fuels) pursuant to hydraulic
fracturing operations related to oil,
gas, or geothermal production
activities.''.
SEC. 323. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.
Section 502 of the Federal Water Pollution Control Act (33
U.S.C. 1362) is amended by adding at the end the following:
``(24) Oil and gas exploration and production.--The
term `oil and gas exploration, production, processing,
or treatment operations or transmission facilities'
means all field activities or operations associated
with exploration, production, processing, or treatment
operations, or transmission facilities, including
activities necessary to prepare a site for drilling and
for the movement and placement of drilling equipment,
whether or not such field activities or operations may
be considered to be construction activities.''.
Subtitle D--Naval Petroleum Reserve
SEC. 331. TRANSFER OF ADMINISTRATIVE JURISDICTION AND ENVIRONMENTAL
REMEDIATION, NAVAL PETROLEUM RESERVE NUMBERED 2,
KERN COUNTY, CALIFORNIA.
(a) Administration Jurisdiction Transfer to Secretary of
the Interior.--Effective on the date of the enactment of this
Act, administrative jurisdiction and control over all public
domain lands included within Naval Petroleum Reserve Numbered 2
located in Kern County, California (other than the lands
specified in subsection (b)), are transferred from the
Secretary to the Secretary of the Interior for management,
subject to subsection (c), in accordance with the laws
governing management of the public lands, and the regulations
promulgated under such laws, including the Mineral Leasing Act
(30 U.S.C. 181 et seq.) and the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1701 et seq.).
(b) Exclusion of Certain Reserve Lands.--The transfer of
administrative jurisdiction made by subsection (a) does not
include the following lands:
(1) That portion of Naval Petroleum Reserve
Numbered 2 authorized for disposal under section
3403(a) of the Strom Thurmond National Defense
Authorization Act for Fiscal Year 1999 (Public Law 105-
261; 10 U.S.C. 7420 note).
(2) That portion of the surface estate of Naval
Petroleum Reserve Numbered 2 conveyed to the City of
Taft, California, by section 333.
(c) Purpose of Transfer.--
(1) Production of hydrocarbon resources.--
Notwithstanding any other provision of law, the
principal purpose of the lands subject to transfer
under subsection (a) is the production of hydrocarbon
resources, and the Secretary of the Interior shall
manage the lands in a fashion consistent with this
purpose. In managing the lands, the Secretary of the
Interior shall regulate operations to prevent
unnecessary degradation and to provide for ultimate
economic recovery of the resources.
(2) Disposal authority and surface use.--The
Secretary of the Interior may make disposals of lands
subject to transfer under subsection (a), or allow
commercial or non-profit surface use of such lands, not
to exceed 10 acres each, so long as the disposals or
surface uses do not materially interfere with the
ultimate economic recovery of the hydrocarbon resources
of such lands. All revenues received from the disposal
of lands under this paragraph or from allowing the
surface use of such lands shall be deposited in the
Naval Petroleum Reserve Numbered 2 Lease Revenue
Account established by section 332.
(d) Conforming Amendment.--Section 3403 of the Strom
Thurmond National Defense Authorization Act for Fiscal Year
1999 (Public Law 105-261; 10 U.S.C 7420 note) is amended by
striking subsection (b).
SEC. 332. NAVAL PETROLEUM RESERVE NUMBERED 2 LEASE REVENUE ACCOUNT.
(a) Establishment.--There is established in the Treasury a
special deposit account to be known as the ``Naval Petroleum
Reserve Numbered 2 Lease Revenue Account'' (in this section
referred to as the ``lease revenue account''). The lease
revenue account is a revolving account, and amounts in the
lease revenue account shall be available to the Secretary of
the Interior, without further appropriation, for the purposes
specified in subsection (b).
(b) Purposes of Account.--
(1) Environmental-related costs.--The lease revenue
account shall be the sole and exclusive source of funds
to pay for any and all costs and expenses incurred by
the United States for--
(A) environmental investigations (other
than any environmental investigations that were
conducted by the Secretary before the transfer
of the Naval Petroleum Reserve Numbered 2 lands
under section 331), remediation, compliance
actions, response, waste management,
impediments, fines or penalties, or any other
costs or expenses of any kind arising from, or
relating to, conditions existing on or below
the Naval Petroleum Reserve Numbered 2 lands,
or activities occurring or having occurred on
such lands, on or before the date of the
transfer of such lands; and
(B) any future remediation necessitated as
a result of pre-transfer and leasing activities
on such lands.
(2) Transition costs.--The lease revenue account
shall also be available for use by the Secretary of the
Interior to pay for transition costs incurred by the
Department of the Interior associated with the transfer
and leasing of the Naval Petroleum Reserve Numbered 2
lands.
(c) Funding.--The lease revenue account shall consist of
the following:
(1) Notwithstanding any other provision of law, for
a period of three years after the date of the transfer
of the Naval Petroleum Reserve Numbered 2 lands under
section 331, the sum of $500,000 per year of revenue
from leases entered into before that date, including
bonuses, rents, royalties, and interest charges
collected pursuant to the Federal Oil and Gas Royalty
Management Act of 1982 (30 U.S.C. 1701 et. seq.),
derived from the Naval Petroleum Reserve Numbered 2
lands, shall be deposited into the lease revenue
account.
(2) Subject to subsection (d), all revenues derived
from leases on Naval Petroleum Reserve Numbered 2 lands
issued on or after the date of the transfer of such
lands, including bonuses, rents, royalties, and
interest charges collected pursuant to the Federal Oil
and Gas Royalty Management Act of 1982 (30 U.S.C. 1701
et seq.), shall be deposited into the lease revenue
account.
(d) Limitation.--Funds in the lease revenue account shall
not exceed $3,000,000 at any one time. Whenever funds in the
lease revenue account are obligated or expended so that the
balance in the account falls below that amount, lease revenues
referred to in subsection(c)(2) shall be deposited in the
account to maintain a balance of $3,000,000.
(e) Termination of Account.--At such time as the Secretary
of the Interior certifies that remediation of all environmental
contamination of Naval Petroleum Reserve Numbered 2 lands in
existence as of the date of the transfer of such lands under
section 331 has been successfully completed, that all costs and
expenses of investigation, remediation, compliance actions,
response, waste management, impediments, fines, or penalties
associated with environmental contamination of such lands in
existence as of the date of the transfer have been paid in
full, and that the transition costs of the Department of the
Interior referred to in subsection (b)(2) have been paid in
full, the lease revenue account shall be terminated and any
remaining funds shall be distributed in accordance with
subsection (f).
(f) Distribution of Remaining Funds.--Section 35 of the
Mineral Leasing Act (30 U.S.C. 191) shall apply to the payment
and distribution of all funds remaining in the lease revenue
account upon its termination under subsection (e).
SEC. 333. LAND CONVEYANCE, PORTION OF NAVAL PETROLEUM RESERVE NUMBERED
2, TO CITY OF TAFT, CALIFORNIA.
(a) Conveyance.--Effective on the date of the enactment of
this Act, there is conveyed to the City of Taft, California (in
this section referred to as the ``City''), all surface right,
title, and interest of the United States in and to a parcel of
real property consisting of approximately 220 acres located in
the NE\1/4\, the NE\1/4\ of the NW\1/4\, and the N\1/2\ of the
SE\1/4\ of the NW\1/4\ of section 18, township 32 south, range
24 east, Mount Diablo meridian, Kern County, California.
(b) Consideration.--The conveyance under subsection (a) is
made without the payment of consideration by the City.
(c) Treatment of Existing Rights.--The conveyance under
subsection (a) is subject to valid existing rights, including
Federal oil and gas lease SAC--019577.
(d) Treatment of Minerals.--All coal, oil, gas, and other
minerals within the lands conveyed under subsection (a) are
reserved to the United States, except that the United States
and its lessees, licensees, permittees, or assignees shall have
no right of surface use or occupancy of the lands. Nothing in
this subsection shall be construed to require the United States
or its lessees, licensees, permittees, or assignees to support
the surface of the conveyed lands.
(e) Indemnify and Hold Harmless.--The City shall indemnify,
defend, and hold harmless the United States for, from, and
against, and the City shall assume all responsibility for, any
and all liability of any kind or nature, including all loss,
cost, expense, or damage, arising from the City's use or
occupancy of, or operations on, the land conveyed under
subsection (a), whether such use or occupancy of, or operations
on, occurred before or occur after the date of the enactment of
this Act.
(f) Instrument of Conveyance.--Not later than one year
after the date of the enactment of this Act, the Secretary
shall execute, file, and cause to be recorded in the
appropriate office a deed or other appropriate instrument
documenting the conveyance made by this section.
SEC. 334. REVOCATION OF LAND WITHDRAWAL.
Effective on the date of the enactment of this Act, the
Executive Order of December 13, 1912, which created Naval
Petroleum Reserve Numbered 2, is revoked in its entirety.
Subtitle E--Production Incentives
SEC. 341. DEFINITION OF SECRETARY.
In this subtitle, the term ``Secretary'' means the
Secretary of the Interior.
SEC. 342. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND.
(a) Applicability of Section.--Notwithstanding any other
provision of law, this section applies to all royalty in-kind
accepted by the Secretary on or after the date of enactment of
this Act under any Federal oil or gas lease or permit under--
(1) section 36 of the Mineral Leasing Act (30
U.S.C. 192);
(2) section 27 of the Outer Continental Shelf Lands
Act (43 U.S.C. 1353); or
(3) any other Federal law governing leasing of
Federal land for oil and gas development.
(b) Terms and Conditions.--All royalty accruing to the
United States shall, on the demand of the Secretary, be paid
in-kind. If the Secretary makes such a demand, the following
provisions apply to the payment:
(1) Satisfaction of royalty obligation.--Delivery
by, or on behalf of, the lessee of the royalty amount
and quality due under the lease satisfies royalty
obligation of the lessee 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) Marketable condition.--
(A) Definition of marketable condition.--In
this paragraph, the term ``in marketable
condition'' means sufficiently free from
impurities and otherwise in a condition that
the royalty production will be accepted by a
purchaser under a sales contract typical of the
fieldor area in which the royalty production
was produced.
(B) Requirement.--Royalty production shall
be placed in marketable condition by the lessee
at no cost to the United States.
(3) Disposition by the secretary.--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) Retention by the secretary.--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 taken in-kind that otherwise would
be deposited to miscellaneous receipts, without regard
to fiscal year limitation, or may use oil or gas
received as royalty taken in-kind (referred to in this
paragraph as ``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) Limitation.--
(A) In general.--Except as provided in
subparagraph (B), the Secretary may not use
revenues from the sale of oil and gas taken in-
kind to pay for personnel, travel, or other
administrative costs of the Federal Government.
(B) Exception.--Notwithstanding
subparagraph (A), the Secretary may use a
portion of the revenues from royalty in-kind
sales, without fiscal year limitation, to pay
salaries and other administrative costs
directly related to the royalty in-kind
program.
(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 the 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 royalties in-kind provides benefits
to the United States that are greater than or equal to the
benefits that are likely to have been received had royalties
been taken in-value.
(e) Reports.--
(1) In general.--Not later than September 30, 2006,
the Secretary shall submit to Congress a report that
addresses--
(A) actions taken to develop business
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) Reports on oil or gas royalties taken in-
kind.--For each of fiscal years 2006 through 2015 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 subsection (h), the
Secretary shall submit to Congress a report that
describes--
(A) the 1 or more methodologies used by the
Secretary to determine compliance with
subsection (d), including the performance
standard for comparing amounts received by the
United States derived from royalties in-kind to
amounts 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 costs and savings incurred by the United
States associated with taking royalties in-
kind, including 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) In general.--Before making payments under
section 35 of the Mineral Leasing Act (30 U.S.C. 191)
or section 8(g) of the Outer ContinentalShelf 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 shall deduct
amounts paid or deducted under subsections (b)(4) and (c) and deposit
the amount of the deductions in the miscellaneous receipts of the
Treasury.
(2) Accounting for deductions.--When 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--
(1) shall consult with a State before conducting a
royalty in-kind program under this subtitle within the
State;
(2) may delegate management of any portion of the
Federal royalty in-kind program to the State except as
otherwise prohibited by Federal law; and
(3) shall consult 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 the revenues likely to have
been received had royalties been taken in-value.
(h) Small Refineries.--
(1) Preference.--If the Secretary finds that
sufficient supplies of crude oil are not available in
the open market to refineries that do not have their
own source of supply for crude oil, the Secretary may
grant preference to those 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 those
refineries at private sale at not less than the market
price.
(2) Proration among refineries in production
area.--In disposing of oil under this subsection, the
Secretary may, at the discretion of the Secretary,
prorate the oil among refineries described in paragraph
(1) in the area in which the oil is produced.
(i) Disposition to Federal Agencies.--
(1) Onshore royalty.--Any royalty oil or gas taken
by the Secretary in-kind from onshore oil and gas
leases may be sold at not less than the market price to
any Federal agency.
(2) Offshore royalty.--Any royalty oil or gas taken
in-kind from a Federal oil or gas lease 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) Federal Low-Income Energy Assistance Programs.--
(1) Preference.--In disposing of royalty oil or gas
taken in-kind under this section, the Secretary may
grant a preference to any person, including any Federal
or State agency, for the purpose of providing
additional resources to any Federal low-income energy
assistance program.
(2) Report.--Not later than 3 years after the date
of enactment of this Act, the Secretary shall submit a
report to Congress--
(A) assessing the effectiveness of granting
preferences specified in paragraph (1); and
(B) providing a specific recommendation on
the continuation of authority to grant
preferences.
SEC. 343. MARGINAL PROPERTY PRODUCTION INCENTIVES.
(a) Definition of Marginal Property.--Until such time as
the Secretary issues regulations under subsection (e) that
prescribe a different definition, in 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 90,000,000
British thermal units of gas per well per day calculated based
on the average over the 3 most recent production months,
including only wells that produce on more than half of the days
during those 3 production months.
(b) Conditions for Reduction of Royalty Rate.--Until such
time as the Secretary issues regulations under subsection (e)
that prescribe different standards or requirements, the
Secretary shall reduce the royalty rate on--
(1) oil production from marginal properties as
prescribed in subsection (c) if the spot price of West
Texas Intermediate crude oil at Cushing, Oklahoma, is,
on average, less than $15 per barrel (adjusted in
accordance with the Consumer Price Index for all-urban
consumers, United States city average, as published by
the Bureau of Labor Statistics) for 90 consecutive
trading days; and
(2) gas production from marginal properties as
prescribed in subsection (c) if the spot price of
natural gas delivered at Henry Hub, Louisiana, is, on
average, less than $2.00 per million British thermal
units (adjusted in accordance with the Consumer Price
Index for all-urban consumers, United States city
average, as published by the Bureau of Labor
Statistics) for 90 consecutive trading days.
(c) Reduced Royalty Rate.--
(1) In general.--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) Period of effectiveness.--The reduced royalty
rate under this subsection shall be effective beginning
on the first day of the production month following the
date on which the applicable condition specified in
subsection (b) is met.
(d) Termination of Reduced Royalty Rate.--A royalty rate
prescribed in subsection (c)(1) shall terminate--
(1) with respect to 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 (adjusted in
accordance with the Consumer Price Index for
all-urban consumers, United States city
average, as published by the Bureau of Labor
Statistics) for 90 consecutive trading days; or
(B) the property no longer qualifies as a
marginal property; and
(2) with respect to 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
(adjusted in accordance with the Consumer Price
Index for all-urban consumers, United States
city average, as published by the Bureau of
Labor Statistics) for 90 consecutive trading
days; or
(B) the property no longer qualifies as a
marginal property.
(e) Regulations Prescribing Different Relief.--
(1) Discretionary regulations.--The Secretary may
by regulation 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) Mandatory regulations.--Unless a determination
is made under paragraph (3), not later than 18 months
after the date of enactment of this Act, the Secretary
shall by regulation--
(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) Report.--To the extent the Secretary determines
that it is not practicable to issue the regulations
referred to in paragraph (2), the Secretary shall
provide a report to Congress explaining such
determination by not later than 18 months after the
date of enactment of this Act.
(4) Considerations.--In issuing regulations under
this subsection, the Secretary may consider--
(A) oil and gas prices and market trends;
(B) production costs;
(C) abandonment costs;
(D) Federal and State tax provisions and
the effects of those provisions on production
economics;
(E) other royalty relief programs;
(F) regional differences in average
wellhead prices;
(G) national energy security issues; and
(H) other relevant matters, as determined
by the Secretary.
(f) Savings Provision.--Nothing in this section prevents a
lessee from receiving royalty relief or a royalty reduction
pursuant to any other law (including a regulation) that
provides more relief than the amounts provided by this section.
SEC. 344. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE
SHALLOW WATERS OF THE GULF OF MEXICO.
(a) Royalty Incentive Regulations for Ultra Deep Gas
Wells.--
(1) In general.--Not later than 180 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 shall
issue 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 in shallow waters less than
400 meters deep located in the Gulf of Mexico wholly
west of 87 degrees, 30 minutes west longitude.
Regulations issued under this subsection shall be
retroactive to the date that the notice of proposed
rulemaking is published in the Federal Register.
(2) Suspension volumes.--The Secretary may grant
suspension volumes of not less than 35 billion cubic
feet in any case in which--
(A) the ultra deep well is a sidetrack; or
(B) the lease has previously produced from
wells with a perforated interval the top of
which is at least 15,000 feet true vertical
depth below the datum at mean sea level.
(3) Definitions.--In this subsection:
(A) Ultra deep well.--The term ``ultra deep
well'' means a well drilled with a perforated
interval, the top of which is at least 20,000
true vertical depth below the datum at mean sea
level.
(B) Sidetrack.--
(i) In general.--The term
``sidetrack'' means a well resulting
from drilling an additional hole to a
new objective bottom-hole location by
leaving a previously drilled hole.
(ii) Inclusion.--The term
``sidetrack'' includes-
(I) drilling a well from a
platform slot reclaimed from a
previously drilled well;
(II) re-entering and
deepening a previously drilled
well; and
(III) a bypass from a
sidetrack, including drilling
around material blocking a hole
or drilling to straighten a
crooked hole.
(b) Royalty Incentive Regulations for Deep Gas Wells.--Not
later than 180 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 shall issue
regulations granting royalty relief suspension volumes with
respect to production of natural gas from deep wells on leases
issued in waters more than 200 meters but less than 400 meters
deep located in the Gulf of Mexico wholly west of 87 degrees,
30 minutes west longitude. The suspension volumes for deep
wells within 200 to 400 meters of water depth shall be
calculated using the same methodology used to calculate the
suspension volumes for deep wells in the shallower waters of
the Gulf of Mexico, and in no case shall the suspension volumes
for deep wells within 200 to 400 meters of water depth be lower
than those for deep wells in shallower waters. Regulations
issued under this subsection shall be retroactive to the date
that the notice of proposed rulemaking is published in the
Federal Register.
(c) Limitations.--The Secretary may place limitations on
the royalty relief granted under this section based on market
price. The royalty relief granted under this section shall not
apply to a lease for which deep water royalty relief is
available.
SEC. 345. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.
(a) In General.--Subject to subsections (b) and (c), for
each tract located in water depths of greater than 400 meters
in the Western and Central Planning Area of the Gulf of Mexico
(including 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), any oil or gas lease sale
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.) occurring during the 5-year period beginning on the date
of enactment of this Act shall use the bidding system
authorized under section 8(a)(1)(H) of the Outer Continental
Shelf Lands Act (43 U.S.C. 1337(a)(1)(H)).
(b) Suspension of Royalties.--The suspension of royalties
under subsection (a) shall be established at a volume of not
less than--
(1) 5,000,000 barrels of oil equivalent for each
lease in water depths of 400 to 800 meters;
(2) 9,000,000 barrels of oil equivalent for each
lease in water depths of 800 to 1,600 meters;
(3) 12,000,000 barrels of oil equivalent for each
lease in water depths of 1,600 to 2,000 meters; and
(4) 16,000,000 barrels of oil equivalent for each
lease in water depths greater than 2,000 meters.
(c) Limitation.--The Secretary may place limitations on
royalty relief granted under this section based on market
price.
SEC. 346. ALASKA OFFSHORE ROYALTY SUSPENSION.
Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act
(43 U.S.C. 1337(a)(3)(B)) is amended by inserting ``and in the
Planning Areas offshore Alaska'' after ``West longitude''.
SEC. 347. OIL AND GAS LEASING IN THE NATIONAL PETROLEUM RESERVE IN
ALASKA.
(a) Transfer of Authority.--
(1) Redesignation.--The Naval Petroleum Reserves
Production Act of 1976 (42 U.S.C. 6501 et seq.) is
amended by redesignating section 107 (42 U.S.C. 6507)
as section 108.
(2) Transfer.--The matter under the heading
``EXPLORATION OF NATIONAL PETROLEUM RESERVE IN ALASKA''
under the heading ``ENERGY AND MINERALS'' of title I of
Public Law 96-514 (42 U.S.C. 6508) is--
(A) transferred to the Naval Petroleum
Reserves Production Act of 1976 (42 U.S.C. 6501
et seq.);
(B) redesignated as section 107 of that
Act; and
(C) moved so as to appear after section 106
of that Act (42 U.S.C. 6506).
(b) Competitive Leasing.--Section 107 of the Naval
Petroleum Reserves Production Act of 1976 (as amended by
subsection (a)(2)) is amended--
(1) by striking the heading and all that follows
through ``Provided, That (1) activities'' and inserting
the following:
``SEC. 107. COMPETITIVE LEASING OF OIL AND GAS.
``(a) In General.--The Secretary shall conduct an
expeditious program of competitive leasing of oil and gas in
the Reserve in accordance with this Act.
``(b) Mitigation of Adverse Effects.--Activities'';
(2) by striking ``Alaska (the Reserve); (2) the''
and inserting ``Alaska.
``(c) Land Use Planning; BLM Wilderness Study.--The'';
(3) by striking ``Reserve; (3) the'' and inserting
``Reserve.
``(d) First Lease Sale.--The;'';
(4) by striking ``4332); (4) the'' and inserting
``4321 et seq.).
``(e) Withdrawals.--The'';
(5) by striking ``herein; (5) bidding'' and
inserting ``under this section.
``(f) Bidding Systems.--Bidding'';
(6) by striking ``629); (6) lease'' and inserting
``629).
``(g) Geological Structures.--Lease'';
(7) by striking ``structures; (7) the'' and
inserting ``structures.
``(h) Size of Lease Tracts.--The'';
(8) by striking ``Secretary; (8)'' and all that
follows through ``Drilling, production,'' and inserting
``Secretary.
``(i) Terms.--
``(1) In general.--Each lease shall be issued for
an initial period of not more than 10 years, and shall
be extended for so long thereafter as oil or gas is
produced from the lease in paying quantities, oil or
gas is capable of being produced in paying quantities,
or drilling or reworking operations, as approved by the
Secretary, are conducted on the leased land.
``(2) Renewal of leases with discoveries.--At the
end of the primary term of a lease the Secretary shall
renew for an additional 10-year term a lease that does
not meet the requirements of paragraph (1) if the
lessee submits to the Secretary an application for
renewal not later than 60 days before the expiration of
the primary lease and the lessee certifies, and the
Secretary agrees, that hydrocarbon resources were
discovered on one or morewells drilled on the leased
land in such quantities that a prudent operator would hold the lease
for potential future development.
``(3) Renewal of leases without discoveries.--At
the end of the primary term of a lease the Secretary
shall renew for an additional 10-year term a lease that
does not meet the requirements of paragraph (1) if the
lessee submits to the Secretary an application for
renewal not later than 60 days before the expiration of
the primary lease and pays the Secretary a renewal fee
of $100 per acre of leased land, and--
``(A) the lessee provides evidence, and the
Secretary agrees that, the lessee has
diligently pursued exploration that warrants
continuation with the intent of continued
exploration or future potential development of
the leased land; or
``(B) all or part of the lease--
``(i) is part of a unit agreement
covering a lease described in
subparagraph (A); and
``(ii) has not been previously
contracted out of the unit.
``(4) Applicability.--This subsection applies to a
lease that is in effect on or after the date of
enactment of the Energy Policy Act of 2005.
``(5) Expiration for failure to produce.--
Notwithstanding any other provision of this Act, if no
oil or gas is produced from a lease within 30 years
after the date of the issuance of the lease the lease
shall expire.
``(6) Termination.--No lease issued under this
section covering lands capable of producing oil or gas
in paying quantities shall expire because the lessee
fails to produce the same due to circumstances beyond
the control of the lessee.
``(j) Unit Agreements.--
``(1) In general.--For the purpose of conservation
of the natural resources of all or part of any oil or
gas pool, field, reservoir, or like area, lessees
(including representatives) of the pool, field,
reservoir, or like area may unite with each other, or
jointly or separately with others, in collectively
adopting and operating under a unit agreement for all
or part of the pool, field, reservoir, or like area
(whether or not any other part of the oil or gas pool,
field, reservoir, or like area is already subject to
any cooperative or unit plan of development or
operation), if the Secretary determines the action to
be necessary or advisable in the public interest. In
determining the public interest, the Secretary should
consider, among other things, the extent to which the
unit agreement will minimize the impact to surface
resources of the leases and will facilitate
consolidation of facilities.
``(2) Consultation.--In making a determination
under paragraph (1), the Secretary shall consult with
and provide opportunities for participation by the
State of Alaska or a Regional Corporation (as defined
in section 3 of the Alaska Native Claims Settlement Act
(43 U.S.C. 1602)) with respect to the creation or
expansion of units that include acreage in which the
State of Alaska or the Regional Corporation has an
interest in the mineral estate.
``(3) Production allocation methodology.--(A) The
Secretary may use a production allocation methodology
for each participating area within a unit that includes
solely Federal land in the Reserve.
``(B) The Secretary shall use a production
allocation methodology for each participating area
within a unit that includes Federal land in the Reserve
and non-Federal land based on the characteristics of
each specific oil or gas pool, field, reservoir, or
like area to take into account reservoir heterogeneity
and area variation in reservoir producibility across
diverse leasehold interests. The implementation of the
foregoing production allocation methodology shall be
controlled by agreement among the affected lessors and
lessees.
``(4) Benefit of operations.--Drilling,
production,'';
(9) by striking ``When separate'' and inserting the
following:
``(5) Pooling.--If separate'';
(10) by inserting ``(in consultation with the
owners of the other land)'' after ``determined by the
Secretary of the Interior'';
(11) by striking ``thereto; (10) to'' and all that
follows through ``the terms provided therein'' and
inserting ``to the agreement.
``(k) Exploration Incentives.--
``(1) In general.--
``(A) Waiver, suspension, or reduction.--To
encourage the greatest ultimate recovery of oil
or gas or in the interest of conservation, the
Secretary may waive, suspend, or reduce the
rental fees or minimum royalty, or reduce the
royalty on an entire leasehold (including on
any lease operated pursuant to a unit
agreement), whenever (after consultationwith
the State of Alaska and the North Slope Borough of Alaska and the
concurrence of any Regional Corporation for leases that include land
that was made available for acquisition by the Regional Corporation
under the provisions of section 1431(o) of the Alaska National Interest
Lands Conservation Act (16 U.S.C. 3101 et seq.)) in the judgment of the
Secretary it is necessary to do so to promote development, or whenever
in the judgment of the Secretary the leases cannot be successfully
operated under the terms provided therein.
``(B) Applicability.--This paragraph
applies to a lease that is in effect on or
after the date of enactment of the Energy
Policy Act of 2005.'';
(12) by striking ``The Secretary is authorized to''
and inserting the following:
``(2) Suspension of operations and production.--The
Secretary may'';
(13) by striking ``In the event'' and inserting the
following:
``(3) Suspension of payments.--If'';
(14) by striking ``thereto; and (11) all'' and
inserting ``to the lease.
``(l) Receipts.--All'';
(15) by redesignating subparagraphs (A), (B), and
(C) as paragraphs (1), (2), and (3), respectively;
(16) by striking ``Any agency'' and inserting the
following:
``(m) Explorations.--Any agency'';
(17) by striking ``Any action'' and inserting the
following:
``(n) Environmental Impact Statements.--
``(1) Judicial review.--Any action'';
(18) by striking ``The detailed'' and inserting the
following:
``(2) Initial lease sales.--The detailed'';
(19) by striking ``section 104(b) of the Naval
Petroleum Reserves Production Act of 1976 (90 Stat.
304; 42 U.S.C. 6504)'' and inserting ``section
104(a)''; and
(20) by adding at the end the following:
``(o) Regulations.--As soon as practicable after the date
of enactment of the Energy Policy Act of 2005, the Secretary
shall issue regulations to implement this section.
``(p) Waiver of Administration for Conveyed Lands.--
``(1) In general.--Notwithstanding section 14(g) of
the Alaska Native Claims Settlement Act (43 U.S.C.
1613(g))--
``(A) the Secretary of the Interior shall
waive administration of any oil and gas lease
to the extent that the lease covers any land in
the Reserve in which all of the subsurface
estate is conveyed to the Arctic Slope Regional
Corporation (referred to in this subsection as
the `Corporation');
``(B)(i) in a case in which a conveyance of
a subsurface estate described in subparagraph
(A) does not include all of the land covered by
the oil and gas lease, the person that owns the
subsurface estate in any particular portion of
the land covered by the lease shall be entitled
to all of the revenues reserved under the lease
as to that portion, including, without
limitation, all the royalty payable with
respect to oil or gas produced from or
allocated to that portion;
``(ii) in a case described in clause (i),
the Secretary of the Interior shall--
``(I) segregate the lease into 2
leases, 1 of which shall cover only the
subsurface estate conveyed to the
Corporation; and
``(II) waive administration of the
lease that covers the subsurface estate
conveyed to the Corporation; and
``(iii) the segregation of the lease
described in clause (ii)(I) has no effect on
the obligations of the lessee under either of
the resulting leases, including obligations
relating to operations, production, or
othercircumstances (other than payment of rentals or royalties); and
``(C) nothing in this subsection limits the
authority of the Secretary of the Interior to
manage the federally-owned surface estate
within the Reserve.''.
(c) Conforming Amendments.--Section 104 of the Naval
Petroleum Reserves Production Act of 1976 (42 U.S.C. 6504) is
amended--
(1) by striking subsection (a); and
(2) by redesignating subsections (b) through (d) as
subsections (a) through (c), respectively.
SEC. 348. NORTH SLOPE SCIENCE INITIATIVE.
(a) Establishment.--
(1) In general.--The Secretary of the Interior
shall establish a long-term initiative to be known as
the ``North Slope Science Initiative'' (referred to in
this section as the ``Initiative'').
(2) Purpose.--The purpose of the Initiative shall
be to implement efforts to coordinate collection of
scientific data that will provide a better
understanding of the terrestrial, aquatic, and marine
ecosystems of the North Slope of Alaska.
(b) Objectives.--To ensure that the Initiative is conducted
through a comprehensive science strategy and implementation
plan, the Initiative shall, at a minimum--
(1) identify and prioritize information needs for
inventory, monitoring, and research activities to
address the individual and cumulative effects of past,
ongoing, and anticipated development activities and
environmental change on the North Slope;
(2) develop an understanding of information needs
for regulatory and land management agencies, local
governments, and the public;
(3) focus on prioritization of pressing natural
resource management and ecosystem information needs,
coordination, and cooperation among agencies and
organizations;
(4) coordinate ongoing and future inventory,
monitoring, and research activities to minimize
duplication of effort, share financial resources and
expertise, and assure the collection of quality
information;
(5) identify priority needs not addressed by agency
science programs in effect on the date of enactment of
this Act and develop a funding strategy to meet those
needs;
(6) provide a consistent approach to high caliber
science, including inventory, monitoring, and research;
(7) maintain and improve public and agency access
to--
(A) accumulated and ongoing research; and
(B) contemporary and traditional local
knowledge; and
(8) ensure through appropriate peer review that the
science conducted by participating agencies and
organizations is of the highest technical quality.
(c) Membership.--
(1) In general.--To ensure comprehensive collection
of scientific data, in carrying out the Initiative, the
Secretary shall consult and coordinate with Federal,
State, and local agencies that have responsibilities
for land and resource management across the North
Slope.
(2) Cooperative agreements.--The Secretary shall
enter into cooperative agreements with the State of
Alaska, the North Slope Borough, the Arctic Slope
Regional Corporation, and other Federal agencies as
appropriate to coordinate efforts, share resources, and
fund projects under this section.
(d) Science Technical Advisory Panel.--
(1) In general.--The Initiative shall include a
panel to provide advice on proposed inventory,
monitoring, and research functions.
(2) Membership.--The panel described in paragraph
(1) shall consist of a representative group of not more
than 15 scientists and technical experts from diverse
professions and interests, including the oil and gas
industry, subsistence users, Native Alaskan entities,
conservation organizations, wildlife management
organizations, and academia, as determined by the
Secretary.
(e) Reports.--Not later than 3 years after the date of
enactment of this section and each year thereafter, the
Secretary shall publish a report that describes the studies and
findings of the Initiative.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 349. ORPHANED, ABANDONED, OR IDLED WELLS ON FEDERAL LAND.
(a) In General.--The Secretary, in cooperation with the
Secretary of Agriculture, shall establish a program not later
than 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 land administered by the land
management agencies within the Department of the Interior and
the Department of Agriculture.
(b) Activities.--The program under subsection (a) shall--
(1) include a means of ranking orphaned, abandoned,
or idled wells 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.
(c) Cooperation and Consultations.--In carrying out the
program under subsection (a), the Secretary shall--
(1) work cooperatively with the Secretary of
Agriculture and the States within which Federal land is
located; and
(2) consult with the Secretary of Energy and the
Interstate Oil and Gas Compact Commission.
(d) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary, in cooperation with the
Secretary of Agriculture, shall submit to Congress a plan for
carrying out the program under subsection (a).
(e) Idled Well.--For the purposes of this section, a well
is idled if--
(1) the well has been nonoperational for at least 7
years; and
(2) there is no anticipated beneficial use for the
well.
(f) Federal Reimbursement for Orphaned Well Reclamation
Pilot Program.--
(1) Reimbursement for remediating, reclaiming, and
closing wells on land subject to a new lease.--The
Secretary shall carry out a pilot program under which,
in issuing a new oil and gas lease on federally owned
land on which 1 or more orphaned wells are located, the
Secretary--
(A) may require, other than as a condition
of the lease, that the lessee remediate,
reclaim, and close in accordance with standards
established by the Secretary, all orphaned
wells on the land leased; and
(B) shall develop a program to reimburse a
lessee, through a royalty credit against the
Federal share of royalties owed or other means,
for the reasonable actual costs of remediating,
reclaiming, and closing the orphaned wells
pursuant to that requirement.
(2) Reimbursement for reclaiming orphaned wells on
other land.--In carrying out this subsection, the
Secretary--
(A) may authorize any lessee under an oil
and gas lease on federally owned land to
reclaim in accordance with the Secretary's
standards--
(i) an orphaned well on unleased
federally owned land; or
(ii) an orphaned well located on an
existing lease on federally owned land
for the reclamation of which the lessee
is not legally responsible; and
(B) shall develop a program to provide
reimbursement of 100 percent of the reasonable
actual costs of remediating, reclaiming, and
closing the orphaned well, through credits
against the Federal share of royalties or other
means.
(3) Regulations.--The Secretary may issue such
regulations as are appropriate to carry out this
subsection.
(g) Technical Assistance Program for Non-Federal Land.--
(1) In general.--The Secretary of Energy shall
establish a program to provide technical and financial
assistance to 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 land.
(2) Assistance.--The Secretary of Energy 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
or abandoned oil or gas wells on State and private
land.
(3) Activities.--The program under paragraph (1)
shall include--
(A) mechanisms to facilitate
identification, if feasible, of the persons
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;
(C) information and training programs on
best practices for remediation of different
types of sites; and
(D) funding of State mitigation efforts on
a cost-shared basis.
(h) Authorization of Appropriations.--
(1) In general.--There are authorized to be
appropriated to carry out this section $25,000,000 for
each of fiscal years 2006 through 2010.
(2) Use.--Of the amounts authorized under paragraph
(1), $5,000,000 are authorized for each fiscal year for
activities under subsection (f).
SEC. 350. COMBINED HYDROCARBON LEASING.
(a) Special Provisions Regarding Leasing.--Section 17(b)(2)
of the Mineral Leasing Act (30 U.S.C. 226(b)(2)) is amended--
(1) by inserting ``(A)'' after ``(2)''; and
(2) by adding at the end the following:
``(B) For any area that contains any combination of tar
sand and oil or gas (or both), the Secretary may issue under
this Act, separately--
``(i) a lease for exploration for and extraction of
tar sand; and
``(ii) a lease for exploration for and development
of oil and gas.
``(C) A lease issued for tar sand shall be issued using the
same bidding process, annual rental, and posting period as a
lease issued for oil and gas, except that the minimum
acceptable bid required for a lease issued for tar sand shall
be $2 per acre.
``(D) The Secretary may waive, suspend, or alter any
requirement under section 26 that a permittee under a permit
authorizing prospecting for tar sand must exercise due
diligence, to promote any resource covered by a combined
hydrocarbon lease.''.
(b) Conforming Amendment.--Section 17(b)(1)(B) of the
Mineral Leasing Act (30 U.S.C. 226(b)(1)(B)) is amended in the
second sentence by inserting ``, subject to paragraph (2)(B),''
after ``Secretary''.
(c) Regulations.--Not later than 45 days after the date of
enactment of this Act, the Secretary shall issue final
regulations to implement this section.
SEC. 351. PRESERVATION OF GEOLOGICAL AND GEOPHYSICAL DATA.
(a) Short Title.--This section may be cited as the
``National Geological and Geophysical Data Preservation Program
Act of 2005''.
(b) Program.--The Secretary shall carry out a National
Geological and Geophysical Data Preservation Program in
accordance with this section--
(1) to archive geologic, geophysical, and
engineering data, maps, well logs, and samples;
(2) to provide a national catalog of such archival
material; and
(3) to provide technical and financial assistance
related to the archival material.
(c) Plan.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress a
plan for the implementation of the Program.
(d) Data Archive System.--
(1) Establishment.--The Secretary shall establish,
as a component of the Program, a data archive system to
provide for the storage, preservation, and archiving of
subsurface, surface, geological, geophysical, and
engineering data and samples. The Secretary, in
consultation with the Advisory Committee, shall develop
guidelines relating to the data archive system,
including the types of data and samples to be
preserved.
(2) System components.--The system shall be
comprised of State agencies that elect to be part of
the system and agencies within the Department of the
Interior that maintain geological and geophysical data
and samples 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) Limitation of designation.--The Secretary may
not designate a State agency as a component of the data
archive system unless that agency is the agency that
acts as the geological survey in the State.
(4) Data from federal land.--The data archive
system shall provide for the archiving of relevant
subsurface data and samples obtained from Federal
land--
(A) in the most appropriate repository
designated under paragraph (2), with preference
being given to archiving data in the State in
which the data were collected; and
(B) consistent with all applicable law and
requirements relating to confidentiality and
proprietary data.
(e) National Catalog.--
(1) In general.--As soon as practicable after the
date of enactment of this Act, the Secretary shall
develop and maintain, as a component of the Program, a
national catalog that identifies--
(A) data and samples available in the data
archive system established under subsection
(d);
(B) the repository for particular material
in the system; and
(C) the means of accessing the material.
(2) Availability.--The Secretary shall make the
national catalog accessible to the public on the site
of the Survey on the Internet, consistent with all
applicable requirements related to confidentiality and
proprietary data.
(f) Advisory Committee.--
(1) In general.--The Advisory Committee shall
advise the Secretary on planning and implementation of
the Program.
(2) New duties.--In addition to its duties under
the National Geologic Mapping Act of 1992 (43 U.S.C.
31a et seq.), the Advisory Committee shall perform the
following duties:
(A) Advise the Secretary on developing
guidelines and procedures for providing
assistance for facilities under subsection
(g)(1).
(B) Review and critique the draft
implementation plan prepared by the Secretary
under subsection (c).
(C) Identify useful studies of data
archived under the Program that will advance
understanding of the Nation's energy and
mineral resources, geologic hazards, and
engineering geology.
(D) Review the progress of the Program in
archiving significant data and preventing the
loss of such data, and the scientific progress
of the studies funded under the Program.
(E) Include in the annual report to the
Secretary required under section 5(b)(3) of the
National Geologic Mapping Act of 1992 (43
U.S.C. 31d(b)(3)) an evaluation of the progress
of the Program toward fulfilling the purposes
of the Program under subsection (b).
(g) Financial Assistance.--
(1) Archive facilities.--Subject to the
availability of appropriations, the Secretary shall
provide financial assistance to a State agency that is
designated under subsection (d)(2) for providing
facilities to archive energy material.
(2) Studies.--Subject to the availability of
appropriations, the Secretary shall provide financial
assistance to any State agency designated under
subsection (d)(2) for studies and technical assistance
activities that enhance understanding, interpretation,
and use of materials archived in the data archive
system established under subsection (d).
(3) Federal share.--The Federal share of the cost
of an activity carried out with assistance under this
subsection shall be not more than 50 percent of the
total cost of the activity.
(4) Private contributions.--The Secretary shall
apply to the non-Federal share of the cost of an
activity carried out with assistance under this
subsection the value of private contributions of
property and services used for that activity.
(h) Report.--The Secretary shall include in each report
under section 8 of the National Geologic Mapping Act of 1992
(43 U.S.C. 31g)--
(1) a description of the status of the Program;
(2) an evaluation of the progress achieved in
developing the Program during the period covered by the
report; and
(3) any recommendations for legislative or other
action the Secretary considers necessary and
appropriate to fulfill the purposes of the Program
under subsection (b).
(i) Maintenance of State Effort.--It is the intent of
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) Definitions.--In this section:
(1) Advisory committee.--The term ``Advisory
Committee'' means the advisory committee established
under section 5 of the National Geologic Mapping Act of
1992 (43 U.S.C. 31d).
(2) Program.--The term ``Program'' means the
National Geological and Geophysical Data Preservation
Program carried out under this section.
(3) Secretary.--The term ``Secretary'' means the
Secretary of the Interior, acting through the Director
of the United States Geological Survey.
(4) Survey.--The term ``Survey'' means the United
States Geological Survey.
(k) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $30,000,000 for
each of fiscal years 2006 through 2010.
SEC. 352. OIL AND GAS LEASE ACREAGE LIMITATIONS.
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 sand areas'' the following: ``, and 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. 353. GAS HYDRATE PRODUCTION INCENTIVE.
(a) Purpose.--The purpose of this section is to promote
natural gas production from the natural gas hydrate resources
on the outer Continental Shelf and Federal lands in Alaska by
providing royalty incentives.
(b) Suspension of Royalties.--
(1) In general.--The Secretary may grant royalty
relief in accordance with this section for natural gas
produced from gas hydrate resources under an eligible
lease.
(2) Eligible leases.--A lease shall be an eligible
lease for purposes of this section if--
(A) it is issued under the Outer
Continental Shelf Lands Act (43 U.S.C. 1331 et
seq.), or is an oil and gas lease issued for
onshore Federal lands in Alaska;
(B) it is issued prior to January 1, 2016;
and
(C) production under the lease of natural
gas from gas hydrate resources commences prior
to January 1, 2018.
(3) Amount of relief.--The Secretary shall conduct
a rulemaking and grant royalty relief under this
section as a suspension volume if the Secretary
determines that such royalty relief would encourage
production of natural gas from gas hydrate resources
from an eligible lease. The maximum suspension volume
shall be 30 billion cubic feet of natural gas per
lease. Such relief shall be in addition to any other
royalty relief under any other provision applicable to
the lease that does not specifically grant a gas
hydrate production incentive. Such royalty suspension
volume shall be applied to any eligible production
occurring on or after the date of publication of the
advanced notice of proposed rulemaking.
(4) Limitation.--The Secretary may place
limitations on royalty relief granted under this
section based on market price.
(c) Application.--This section shall apply to any eligible
lease issued before, on, or after the date of enactment of this
Act.
(d) Rulemakings.--
(1) Requirement.--The Secretary shall publish the
advanced notice of proposed rulemaking within 180 days
after the date of enactment of this Act and complete
the rulemaking implementing this section within 365
days after the date of enactment of this Act.
(2) Gas hydrate resources defined.--Such
regulations shall define the term ``gas hydrate
resources'' to include both the natural gas content of
gas hydrates within the hydrate stability zone and free
natural gas trapped by and beneath the hydrate
stability zone.
(e) Review.--Not later than 365 days after the date of
enactment of this Act, the Secretary, in consultation with the
Secretary of Energy, shall carry out a review of, and submit to
Congress a report on, further opportunities to enhance
production of natural gas from gas hydrate resources on the
outer Continental Shelf and on Federal lands in Alaska through
the provision of other production incentives or through
technical or financial assistance.
SEC. 354. ENHANCED OIL AND NATURAL GAS PRODUCTION THROUGH CARBON
DIOXIDE INJECTION.
(a) Production Incentive.--
(1) Findings.--Congress finds the following:
(A) Approximately two-thirds of the
original oil in place in the United States
remains unproduced.
(B) Enhanced oil and natural gas production
from the sequestering of carbon dioxide and
other appropriate gases has the potential to
increase oil and natural gas production.
(C) Capturing and productively using carbon
dioxide would help reduce the carbon intensity
of the economy.
(2) Purpose.--The purpose of this section is--
(A) to promote the capturing,
transportation, and injection of produced
carbon dioxide, natural carbon dioxide, and
other appropriate gases or other matter for
sequestration into oil and gas fields; and
(B) to promote oil and natural gas
production from the outer Continental Shelf and
onshore Federal lands under lease by providing
royalty incentives to use enhanced recovery
techniques using injection of the substances
referred to in subparagraph (A).
(b) Suspension of Royalties.--
(1) In general.--If the Secretary determines that
reduction of the royalty under a Federal oil and gas
lease that is an eligible lease is in the public
interest and promotes the purposes of this section, the
Secretary shall undertake a rulemaking to provide for
such reduction for an eligible lease.
(2) Rulemakings.--The Secretary shall publish the
advanced notice of proposed rulemaking within 180 days
after the date of enactment of this Act and complete
the rulemaking implementing this section within 365
days after the date of enactment of this Act.
(3) Eligible leases.--A lease shall be an eligible
lease for purposes of this section if--
(A) it is a lease for production of oil and
gas from the outer Continental Shelf or Federal
onshore lands;
(B) the injection of the substances
referred to in subsection (a)(2)(A) will be
used as an enhanced recovery technique on such
lease; and
(C) the Secretary determines that the lease
contains oil or gas that would not likely be
produced without the royalty reduction provided
under this section.
(4) Amount of relief.--The rulemaking shall provide
for a suspension volume, which shall not exceed
5,000,000 barrels of oil equivalent for each eligible
lease. Such suspension volume shall be applied to any
production from an eligible lease occurring on or after
the date of publication of any advanced notice of
proposed rulemaking under this subsection.
(5) Limitation.--The Secretary may place
limitations on the royalty reduction granted under this
section based on market price.
(6) Application.--This section shall apply to any
eligible lease issued before, on, or after the date of
enactment of this Act.
(c) Demonstration Program.--
(1) Establishment.--
(A) In general.--The Secretary of Energy
shall establish a competitive grant program to
provide grants to producers of oil and gas to
carry out projects to inject carbon dioxide for
the purpose of enhancing recovery of oil or
natural gas while increasing the sequestration
of carbon dioxide.
(B) Projects.--The demonstration program
shall provide for--
(i) not more than 10 projects in
the Willistin Basin in North Dakota and
Montana; and
(ii) 1 project in the Cook Inlet
Basin in Alaska.
(2) Requirements.--
(A) In general.--The Secretary of Energy
shall issue requirements relating to
applications for grants under paragraph (1).
(B) Rulemaking.--The issuance of
requirements under subparagraph (A) shall not
require a rulemaking.
(C) Minimum requirements.--At a minimum,
the Secretary shall require under subparagraph
(A) that an application for a grant include--
(i) a description of the project
proposed in the application;
(ii) an estimate of the production
increase and the duration of the
production increase from the project,
as compared to conventional recovery
techniques, including water flooding;
(iii) an estimate of the carbon
dioxide sequestered by project, over
the life of the project;
(iv) a plan to collect and
disseminate data relating to each
project to be funded by the grant;
(v) a description of the means by
which the project will be sustainable
without Federal assistance after the
completion of the term of the grant;
(vi) a complete description of the
costs of the project, including
acquisition, construction, operation,
and maintenance costs over the expected
life of the project;
(vii) a description of which costs
of the project will be supported by
Federal assistance under this section;
and
(viii) a description of any
secondary or tertiary recovery efforts
in the field and the efficacy of water
flood recovery techniques used.
(3) Partners.--An applicant for a grant under
paragraph (1) may carry out a project under a pilot
program in partnership with 1 or more other public or
private entities.
(4) Selection criteria.--In evaluating applications
under this subsection, the Secretary of Energy shall--
(A) consider the previous experience with
similar projects of each applicant; and
(B) give priority consideration to
applications that--
(i) are most likely to maximize
production of oil and gas in a cost-
effective manner;
(ii) sequester significant
quantities of carbon dioxide from
anthropogenic sources;
(iii) demonstrate the greatest
commitment on the part of the applicant
to ensure funding for the proposed
project and the greatest likelihood
that the project will be maintained or
expanded after Federal assistance under
this section is completed; and
(iv) minimize any adverse
environmental effects from the project.
(5) Demonstration program requirements.--
(A) Maximum amount.--The Secretary of
Energy shall not provide more than $3,000,000
in Federal assistance under this subsection to
any applicant.
(B) Cost sharing.--The Secretary of Energy
shall require cost-sharing under this
subsection in accordance with section 988.
(C) Period of grants.--
(i) In general.--A project funded
by a grant under this subsection shall
begin construction not later than 2
years after the date of provision of
the grant, but in any case not later
than December 31, 2010.
(ii) Term.--The Secretary shall not
provide grant funds to any applicant
under this subsection for a period of
more than 5 years.
(6) Transfer of information and knowledge.--The
Secretary of Energy shall establish mechanisms to
ensure that the information and knowledge gained by
participants in the program under this subsection are
transferred among other participants and interested
persons, including other applicants that submitted
applications for a grant under this subsection.
(7) Schedule.--
(A) Publication.--Not later than 180 days
after the date of enactment of this Act, the
Secretary of Energy shall publish in the
Federal Register, and elsewhere, as
appropriate, a request for applications to
carry out projects under this subsection.
(B) Date for applications.--An application
for a grant under this subsection shall be
submitted not later than 180 days after the
date of publication of the request under
subparagraph (A).
(C) Selection.--After the date by which
applications for grants are required to be
submitted under subparagraph (B), the Secretary
of Energy, in a timely manner, shall select,
after peer review and based on the criteria
under paragraph (4), those projects to be
awarded a grant under this subsection.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 355. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.
(a) Assessment.--The Secretary of Energy shall assess the
economic implications 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) the 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 the 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 the displacement on the relationship
described in paragraph (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 1 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, a report
describing the findings, conclusions, and recommendations
resulting from the assessment.
(d) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 356. DENALI COMMISSION.
(a) Definition of Commission.--In this section, the term
``Commission'' means the Denali Commission established by the
Denali Commission Act of 1998 (42 U.S.C. 3121 note; Public Law
105-277).
(b) Energy Programs.--The Commission shall use amounts made
available under subsection (d) to carry out energy programs,
including--
(1) energy generation and development, including--
(A) fuel cells, hydroelectric, solar, wind,
wave, and tidal energy; and
(B) alternative energy sources;
(2) the construction of energy transmission,
including interties;
(3) the replacement and cleanup of fuel tanks;
(4) the construction of fuel transportation
networks and related facilities;
(5) power cost equalization programs; and
(6) projects using coal as a fuel, including coal
gasification projects.
(c) Open Meetings.--
(1) In general.--Except as provided in paragraph
(2), a meeting of the Commission shall be open to the
public if--
(A) the Commission members take action on
behalf of the Commission; or
(B) the deliberations of the Commission
determine, or result in the joint conduct or
disposition of, official Commission business.
(2) Exceptions.--Paragraph (1) shall not apply to
any portion of a Commission meeting for which the
Commission, in public session, votes to close the
meeting for the reasons described in paragraph (2),
(4), (5), or (6) of subsection (c) of section 552b of
title 5, United States Code.
(3) Public notice.--
(A) In general.--At least 1 week before a
meeting of the Commission, the Commission shall
make a public announcement of the meeting that
describes--
(i) the time, place, and subject
matter of the meeting;
(ii) whether the meeting is to be
open or closed to the public; and
(iii) the name and telephone number
of an appropriate person to respond to
requests for information about the
meeting.
(B) Additional notice.--The Commission
shall make a public announcement of any change
to the information made available under
subparagraph (A) at the earliest practicable
time.
(4) Minutes.--The Commission shall keep, and make
available to the public, a transcript, electronic
recording, or minutes from each Commission meeting,
except for portions of the meeting closed under
paragraph (2).
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Commission not more than $55,000,000
for each of fiscal years 2006 through 2015 to carry out
subsection (b).
SEC. 357. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.
(a) In General.--The Secretary 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
resource 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 shall submit a report to
Congress on the inventory of estimates and the analysis of
restrictions or impediments, together with any recommendations,
within 6 months of the date of enactment of the section. The
report shall be publicly available and updated at least every 5
years.
Subtitle F--Access to Federal Lands
SEC. 361. FEDERAL ONSHORE OIL AND GAS LEASING AND PERMITTING PRACTICES.
(a) Review of Onshore Oil and Gas Leasing Practices.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture with
respect to National Forest System lands under the
jurisdiction of the Department of Agriculture, shall
perform an internal review of current Federal onshore
oil and gas leasing and permitting practices.
(2) Inclusions.--The review shall include the
process for--
(A) accepting or rejecting offers to lease;
(B) administrative appeals of decisions or
orders of officers or employees of the Bureau
of Land Management with respect to a Federal
oil or gas lease;
(C) considering surface use plans of
operation, including the timeframes in which
the plans are considered, and any
recommendations for improving and expediting
the process; and
(D) identifying stipulations to address
site-specific concerns and conditions,
including those stipulations relating to the
environment and resource use conflicts.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall transmit a report to Congress
that describes--
(1) actions taken under section 3 of Executive
Order No. 13212 (42 U.S.C. 13201 note); and
(2) actions taken or any plans to improve the
Federal onshore oil and gas leasing program.
SEC. 362. MANAGEMENT OF FEDERAL OIL AND GAS LEASING PROGRAMS.
(a) Timely Action on Leases and Permits.--
(1) Secretary of the interior.--To ensure timely
action on oil and gas leases and applications for
permits to drill on land otherwise available for
leasing, the Secretary of the Interior (referred to in
this section as the ``Secretary'') shall--
(A) ensure expeditious compliance with
section 102(2)(C) of the National Environmental
Policy Act of 1969 (42 U.S.C. 4332(2)(C)) and
any other applicable environmental and cultural
resources laws;
(B) improve consultation and coordination
with the States and the public; and
(C) improve the collection, storage, and
retrieval of information relating to the oil
and gas leasing activities.
(2) Secretary of agriculture.--To ensure timely
action on oil and gas lease applications for permits to
drill on land otherwise available for leasing, the
Secretary of Agriculture shall--
(A) ensure expeditious compliance with all
applicable environmental and cultural resources
laws; and
(B) improve the collection, storage, and
retrieval of information relating to the oil
and gas leasing activities.
(b) Best Management Practices.--
(1) In general.--Not later than 18 months after the
date of enactment of this Act, the Secretary shall
develop and implement best management practices to--
(A) improve the administration of the
onshore oil and gas leasing program under the
Mineral Leasing Act (30 U.S.C. 181 et seq.);
and
(B) ensure timely action on oil and gas
leases and applications for permits to drill on
land otherwise available for leasing.
(2) Considerations.--In developing the best
management practices under paragraph (1), the Secretary
shall consider any recommendations from the review
under section 361.
(3) Regulations.--Not later than 180 days after the
development of the best management practices under
paragraph (1), the Secretary shall publish, for public
comment, proposed regulations that set forth specific
timeframes for processing leases and applications in
accordance with the best management practices,
including deadlines for--
(A) approving or disapproving--
(i) resource management plans and
related documents;
(ii) lease applications;
(iii) applications for permits to
drill; and
(iv) surface use plans; and
(B) related administrative appeals.
(c) Improved Enforcement.--The Secretary and the Secretary
Agriculture shall improve inspection and enforcement of oil and
gas activities, including enforcement of terms and conditions
in permits to drill on land under the jurisdiction of the
Secretary and the Secretary of Agriculture, respectively.
(d) Authorization of Appropriations.--In addition to
amounts made available to carry out activities relating to oil
and gas leasing on public land administered by the Secretary
and National Forest System land administered by the Secretary
of Agriculture, there are authorized to be appropriated for
each of fiscal years 2006 through 2010--
(1) to the Secretary, acting through the Director
of the Bureau of Land Management--
(A) $40,000,000 to carry out subsections
(a)(1) and (b); and
(B) $20,000,000 to carry out subsection
(c);
(2) to the Secretary, acting through the Director
of the United States Fish and Wildlife Service,
$5,000,000 to carry out subsection (a)(1); and
(3) to the Secretary of Agriculture, acting through
the Chief of the Forest Service, $5,000,000 to carry
out subsections (a)(2) and (c).
SEC. 363. CONSULTATION REGARDING OIL AND GAS LEASING ON PUBLIC LAND.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior and the
Secretary of Agriculture shall enter into a memorandum of
understanding regarding oil and gas leasing on--
(1) public land under the jurisdiction of the
Secretary of the Interior; and
(2) National Forest System land under the
jurisdiction of the Secretary of Agriculture.
(b) Contents.--The memorandum of understanding shall
include provisions that--
(1) establish administrative procedures and lines
of authority that ensure timely processing of--
(A) oil and gas lease applications;
(B) surface use plans of operation,
including steps for processing surface use
plans; and
(C) applications for permits to drill
consistent with applicable timelines;
(2) eliminate duplication of effort by providing
for coordination of planning and environmental
compliance efforts;
(3) ensure that lease stipulations are--
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to
protect the resource for which the stipulations
are applied;
(4) establish a joint data retrieval system that is
capable of--
(A) tracking applications and formal
requests made in accordance with procedures of
the Federal onshore oil and gas leasing
program; and
(B) providing information regarding the
status of the applications and requests within
the Department of the Interior and the
Department of Agriculture; and
(5) establish a joint geographic information system
mapping system for use in--
(A) tracking surface resource values to aid
in resource management; and
(B) processing surface use plans of
operation and applications for permits to
drill.
SEC. 364. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL
LAND.
(a) Assessment.--Section 604 of the Energy Act of 2000 (42
U.S.C. 6217) is amended--
(1) in subsection (a)--
(A) in paragraph (1)--
(i) by striking ``reserve''; and
(ii) by striking ``and'' after the
semicolon; and
(B) by striking paragraph (2) and inserting
the following:
``(2) the extent and nature of any restrictions or
impediments to the development of the resources,
including--
``(A) impediments to the timely granting of
leases;
``(B) post-lease restrictions, impediments,
or delays on development for conditions of
approval, applications for permits to drill, or
processing of environmental permits; and
``(C) permits or restrictions associated
with transporting the resources for entry into
commerce; and
``(3) the quantity of resources not produced or
introduced into commerce because of the
restrictions.'';
(2) in subsection (b)--
(A) by striking ``reserve'' and inserting
``resource''; and
(B) by striking ``publically'' and
inserting ``publicly''; and
(3) by striking subsection (d) and inserting the
following:
``(d) Assessments.--Using the inventory, the Secretary of
Energy shall make periodic assessments of economically
recoverable resources accounting for a range of parameters such
as current costs, commodity prices, technology, and
regulations.''.
(b) Methodology.--The Secretary of the Interior shall use
the same assessment methodology across all geological
provinces, areas, and regions in preparing and issuing national
geological assessments to ensure accurate comparisons of
geological resources.
SEC. 365. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.
(a) Establishment.--The Secretary of the Interior (referred
to in this section as the ``Secretary'') shall establish a
Federal Permit Streamlining Pilot Project (referred to in this
section as the ``Pilot Project'').
(b) Memorandum of Understanding.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
enter into a memorandum of understanding for purposes
of this section with--
(A) the Secretary of Agriculture;
(B) the Administrator of the Environmental
Protection Agency; and
(C) the Chief of Engineers.
(2) State participation.--The Secretary may request
that the Governors of Wyoming, Montana, Colorado, Utah,
and New Mexico be signatories to the memorandum of
understanding.
(c) Designation of Qualified Staff.--
(1) In general.--Not later than 30 days after the
date of the signing of the memorandum of understanding
under subsection (b), all Federal signatory parties
shall, if appropriate, assign to each of the field
offices identified in subsection (d) an employee who
has expertise in the regulatory issues relating to the
office in which the employee is employed, including, as
applicable, particular expertise in--
(A) the consultations and the preparation
of biological opinions under section 7 of the
Endangered Species Act of 1973 (16 U.S.C.
1536);
(B) permits under section 404 of Federal
Water Pollution Control Act (33 U.S.C. 1344);
(C) regulatory matters under the Clean Air
Act (42 U.S.C. 7401 et seq.);
(D) planning under the National Forest
Management Act of 1976 (16 U.S.C. 472a et
seq.); and
(E) the preparation of analyses under the
National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
(2) Duties.--Each employee assigned under paragraph
(1) shall--
(A) not later than 90 days after the date
of assignment, report to the Bureau of Land
Management Field Managers in the office to
which the employee is assigned;
(B) be responsible for all issues relating
to the jurisdiction of the home office or
agency of the employee; and
(C) participate as part of the team of
personnel working on proposed energy projects,
planning, and environmental analyses.
(d) Field Offices.--The following Bureau of Land Management
Field Offices shall serve as the Pilot Project offices:
(1) Rawlins, Wyoming.
(2) Buffalo, Wyoming.
(3) Miles City, Montana
(4) Farmington, New Mexico.
(5) Carlsbad, New Mexico.
(6) Grand Junction/Glenwood Springs, Colorado.
(7) Vernal, Utah.
(e) Reports.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that--
(1) outlines the results of the Pilot Project to
date; and
(2) makes a recommendation to the President
regarding whether the Pilot Project should be
implemented throughout the United States.
(f) Additional Personnel.--The Secretary shall assign to
each field office identified in subsection (d) any additional
personnel that are necessary to ensure the effective
implementation of--
(1) the Pilot Project; and
(2) other programs administered by the field
offices, including inspection and enforcement relating
to energy development on Federal land, in accordance
with the multiple use mandate of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1701 et
seq).
(g) Permit Processing Improvement Fund.--Section 35 of the
Mineral Leasing Act (30 U.S.C. 191) is amended by adding at the
end the following:
``(c)(1) Notwithstanding the first sentence of subsection
(a), any rentals received from leases in any State (other than
the State of Alaska) on or after the date of enactment of this
subsection shall be deposited in the Treasury, to be allocated
in accordance with paragraph (2).
``(2) Of the amounts deposited in the Treasury under
paragraph (1)--
``(A) 50 percent shall be paid by the Secretary of
the Treasury to the State within the boundaries of
which the leased land is located or the deposits were
derived; and
``(B) 50 percent shall be deposited in a special
fund in the Treasury, to be known as the `BLM Permit
Processing Improvement Fund' (referred to in this
subsection as the `Fund').
``(3) For each of fiscal years 2006 through 2015, the Fund
shall be available to the Secretary of the Interior for
expenditure, without further appropriation and without fiscal
year limitation, for the coordination and processing of oil and
gas use authorizations on onshore Federal land under the
jurisdiction of the Pilot Project offices identified in section
365(d) of the Energy Policy Act of 2005.''.
(h) Transfer of Funds.--For the purposes of coordination
and processing of oil and gas use authorizations on Federal
land under the administration of the Pilot Project offices
identified in subsection (d), the Secretary may authorize the
expenditure or transfer of such funds as are necessary to--
(1) the United States Fish and Wildlife Service;
(2) the Bureau of Indian Affairs;
(3) the Forest Service;
(4) the Environmental Protection Agency;
(5) the Corps of Engineers; and
(6) the States of Wyoming, Montana, Colorado, Utah,
and New Mexico.
(i) Fees.--During the period in which the Pilot Project is
authorized, the Secretary shall not implement a rulemaking that
would enable an increase in fees to recover additional costs
related to processing drilling-related permit applications and
use authorizations.
(j) Savings Provision.--Nothing in this section affects--
(1) the operation of any Federal or State law; or
(2) any delegation of authority made by the head of
a Federal agency whose employees are participating in
the Pilot Project.
SEC. 366. DEADLINE FOR CONSIDERATION OF APPLICATIONS FOR PERMITS.
Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is
amended by adding at the end the following:
``(p) Deadlines for Consideration of Applications for
Permits.--
``(1) In general.--Not later than 10 days after the
date on which the Secretary receives an application for
any permit to drill, the Secretary shall--
``(A) notify the applicant that the
application is complete; or
``(B) notify the applicant that information
is missing and specify any information that is
required to be submitted for the application to
be complete.
``(2) Issuance or deferral.--Not later than 30 days
after the applicant for a permit has submitted a
complete application, the Secretary shall--
``(A) issue the permit, if the requirements
under the National Environmental Policy Act of
1969 and other applicable law have been
completed within such timeframe; or
``(B) defer the decision on the permit and
provide to the applicant a notice--
``(i) that specifies any steps that
the applicant could take for the permit
to be issued; and
``(ii) a list of actions that need
to be taken by the agency to complete
compliance with applicable law together
with timelines and deadlines for
completing such actions.
``(3) Requirements for deferred applications.--
``(A) In general.--If the Secretary
provides notice under paragraph (2)(B), the
applicant shall have a period of 2 years from
the date of receipt of the notice in which to
complete all requirements specified by the
Secretary, including providing information
needed for compliance with the National
Environmental Policy Act of 1969.
``(B) Issuance of decision on permit.--If
the applicant completes the requirements within
the period specified in subparagraph (A), the
Secretary shall issue a decision on the permit
not later than 10 days after the date of
completion of the requirements described in
subparagraph (A), unless compliance with the
National Environmental Policy Act of 1969 and
other applicable law has not been completed
within such timeframe.
``(C) Denial of permit.--If the applicant
does not complete the requirements within the
period specified in subparagraph (A) or if the
applicant does not comply with applicable law,
the Secretary shall deny the permit.''.
SEC. 367. FAIR MARKET VALUE DETERMINATIONS FOR LINEAR RIGHTS-OF-WAY
ACROSS PUBLIC LANDS AND NATIONAL FORESTS.
(a) Update of Fee Schedule.--Not later than one year after
the date of enactment of this section--
(1) the Secretary of the Interior shall update
section 2806.20 of title 43, Code of Federal
Regulations, as in effect on the date of enactment of
this section, to revise the per acre rental fee zone
value schedule by State, county, and type of linear
right-of-way use to reflect current values of land in
each zone; and
(2) the Secretary of Agriculture shall make the
same revision for linear rights-of-way granted, issued,
or renewed under title V of the Federal Lands Policy
and Management Act of 1976 (43 U.S.C. 1761 et seq.) on
National Forest System land.
(b) Fair Market Value Rental Determination for Linear
Rights-of-way.--The fair market value rent of a linear right-
of-way across public lands or National Forest System lands
issued under section 504 of the Federal Land Policy and
Management Act of 1976 (43 U.S.C. 1764) or section 28 of the
Mineral Leasing Act (30 U.S.C. 185) shall be determined in
accordance with subpart 2806 of title 43, Code of Federal
Regulations, as in effect on the date of enactment of this
section (including the annual or periodic updates specified in
the regulations) and as updated in accordance with subsection
(a).
SEC. 368. ENERGY RIGHT-OF-WAY CORRIDORS ON FEDERAL LAND.
(a) Western States.--Not later than 2 years after the date
of enactment of this Act, the Secretary of Agriculture, the
Secretary of Commerce, the Secretary of Defense, the Secretary
of Energy, and the Secretary of the Interior (in this section
referred to collectively as ``the Secretaries''), in
consultation with the Federal Energy Regulatory Commission,
States, tribal or local units of governments as appropriate,
affected utility industries, and other interested persons,
shall consult with each other and shall--
(1) designate, under their respective authorities,
corridors for oil, gas, and hydrogen pipelines and
electricity transmission and distribution facilities on
Federal land in the eleven contiguous Western States
(as defined in section 103(o) of the Federal Land
Policy and Management Act of 1976 (43 U.S.C. 1702(o));
(2) perform any environmental reviews that may be
required to complete the designation of such corridors;
and
(3) incorporate the designated corridors into the
relevant agency land use and resource management plans
or equivalent plans.
(b) Other States.--Not later than 4 years after the date of
enactment of this Act, the Secretaries, in consultation with
the Federal Energy Regulatory Commission, affected utility
industries, and other interested persons, shall jointly--
(1) identify corridors for oil, gas, and hydrogen
pipelines and electricity transmission and distribution
facilities on Federal land in States other than those
described in subsection (a); and
(2) schedule prompt action to identify, designate,
and incorporate the corridors into the applicable land
use plans.
(c) Ongoing Responsibilities.--The Secretaries, in
consultation with the Federal Energy Regulatory Commission,
affected utility industries, and other interestedparties, shall
establish procedures under their respective authorities that--
(1) ensure that additional corridors for oil, gas,
and hydrogen pipelines and electricity transmission and
distribution facilities on Federal land are promptly
identified and designated as necessary; and
(2) expedite applications to construct or modify
oil, gas, and hydrogen pipelines and electricity
transmission and distribution facilities within such
corridors, taking into account prior analyses and
environmental reviews undertaken during the designation
of such corridors.
(d) Considerations.--In carrying out this section, the
Secretaries shall take into account the need for upgraded and
new electricity transmission and distribution facilities to--
(1) improve reliability;
(2) relieve congestion; and
(3) enhance the capability of the national grid to
deliver electricity.
(e) Specifications of Corridor.--A corridor designated
under this section shall, at a minimum, specify the centerline,
width, and compatible uses of the corridor.
SEC. 369. OIL SHALE, TAR SANDS, AND OTHER STRATEGIC UNCONVENTIONAL
FUELS.
(a) Short Title.--This section may be cited as the ``Oil
Shale, Tar Sands, and Other Strategic Unconventional Fuels Act
of 2005''.
(b) Declaration of Policy.--Congress declares that it is
the policy of the United States that--
(1) United States oil shale, tar sands, and other
unconventional fuels are strategically important
domestic resources that should be developed to reduce
the growing dependence of the United States on
politically and economically unstable sources of
foreign oil imports;
(2) the development of oil shale, tar sands, and
other strategic unconventional fuels, for research and
commercial development, should be conducted in an
environmentally sound manner, using practices that
minimize impacts; and
(3) development of those strategic unconventional
fuels should occur, with an emphasis on sustainability,
to benefit the United States while taking into account
affected States and communities.
(c) Leasing Program for Research and Development of Oil
Shale and Tar Sands.--In accordance with section 21 of the
Mineral Leasing Act (30 U.S.C. 241) and any other applicable
law, except as provided in this section, not later than 180
days after the date of enactment of this Act, from land
otherwise available for leasing, the Secretary of the Interior
(referred to in this section as the ``Secretary'') shall make
available for leasing such land as the Secretary considers to
be necessary to conduct research and development activities
with respect to technologies for the recovery of liquid fuels
from oil shale and tar sands resources on public lands.
Prospective public lands within each of the States of Colorado,
Utah, and Wyoming shall be made available for such research and
development leasing.
(d) Programmatic Environmental Impact Statement and
Commercial Leasing Program for Oil Shale and Tar Sands.--
(1) Programmatic environmental impact statement.--
Not later than 18 months after the date of enactment of
this Act, in accordance with section 102(2)(C) of the
National Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)), the Secretary shall complete a
programmatic environmental impact statement for a
commercial leasing program for oil shale and tar sands
resources on public lands, with an emphasis on the most
geologically prospective lands within each of the
States of Colorado, Utah, and Wyoming.
(2) Final regulation.--Not later than 6 months
after the completion of the programmatic environmental
impact statement under this subsection, the Secretary
shall publish a final regulation establishing such
program.
(e) Commencement of Commercial Leasing of Oil Shale and Tar
Sands.--Not later than 180 days after publication of the final
regulation required by subsection (d), the Secretary shall
consult with the Governors of States with significant oil shale
and tar sands resources on public lands, representatives of
local governments in such States, interested Indian tribes, and
other interested persons, to determine the level of support and
interest in the States in the development of tar sands and oil
shale resources. If the Secretary finds sufficient support and
interest exists in a State, the Secretary may conduct a lease
sale in that State under the commercial leasing program
regulations. Evidence of interest in a lease sale under this
subsection shall include, but not be limited to, appropriate
areas nominated for leasing by potential lessees and other
interested parties.
(f) Diligent Development Requirements.--The Secretary
shall, by regulation, designate work requirements and
milestones to ensure the diligent development of the lease.
(g) Initial Report by the Secretary of the Interior.--
Within 90 days after the date of enactment of this Act, the
Secretary of the Interior shall report to theCommittee on
Resources of the House of Representatives and the Committee on Energy
and Natural Resources of the Senate on--
(1) the interim actions necessary to--
(A) develop the program, complete the
programmatic environmental impact statement,
and promulgate the final regulation as required
by subsection (d); and,
(B) conduct the first lease sales under the
program as required by subsection (e); and
(2) a schedule to complete such actions within the
time limits mandated by this section.
(h) Task Force.--
(1) Establishment.--The Secretary of Energy, in
cooperation with the Secretary of the Interior and the
Secretary of Defense, shall establish a task force to
develop a program to coordinate and accelerate the
commercial development of strategic unconventional
fuels, including but not limited to oil shale and tar
sands resources within the United States, in an
integrated manner.
(2) Composition.--The Task Force shall be composed
of
(A) the Secretary of Energy (or the
designee of the Secretary);
(B) the Secretary of the Interior (or the
designee of the Secretary of the Interior);
(C) the Secretary of Defense (or the
designee of the Secretary of Defense);
(D) the Governors of affected States; and
(E) representatives of local governments in
affected areas.
(3) Recommendations.--The Task Force shall make
such recommendations regarding promoting the
development of the strategic unconventional fuels
resources within the United States as it may deem
appropriate.
(4) Partnerships.--The Task Force shall make
recommendations with respect to initiating a
partnership with the Province of Alberta, Canada, for
purposes of sharing information relating to the
development and production of oil from tar sands, and
similar partnerships with other nations that contain
significant oil shale resources
(5) Reports.--
(A) Initial report.--Not later than 180
days after the date of enactment of this Act,
the Task Force shall submit to the President
and Congress a report that describes the
analysis and recommendations of the Task Force.
(B) Subsequent reports.--The Secretary
shall provide an annual report describing the
progress in developing the strategic
unconventional fuels resources within the
United States for each of the 5 years following
submission of the report provided for in
subparagraph (A).
(i) Office of Petroleum Reserves.--
(1) In general.--The Office of Petroleum Reserves
of the Department of Energy shall--
(A) coordinate the creation and
implementation of a commercial strategic fuel
development program for the United States;
(B) evaluate the strategic importance of
unconventional sources of strategic fuels to
the security of the United States;
(C) promote and coordinate Federal
Government actions that facilitate the
development of strategic fuels in order to
effectively address the energy supply needs of
the United States;
(D) identify, assess, and recommend
appropriate actions of the Federal Government
required to assist in the development and
manufacturing of strategic fuels; and
(E) coordinate and facilitate appropriate
relationships between private industry and the
Federal Government to promote sufficient and
timely private investment to commercialize
strategic fuels for domestic and military use.
(2) Consultation and coordination.--The Office of
Petroleum Reserves shall work closely with the Task
Force and coordinate its staff support.
(3) Annual reports.--Not later than 180 days after
the date of enactment of this Act and annually
thereafter, the Secretary shall submit to Congress a
report that describes the activities of the Office of
Petroleum Reserves carried out under this subsection.
(j) Mineral Leasing Act Amendments.--
(1) Section 17.--Section 17(b)(2) of the Mineral
Leasing Act (30 U.S.C. 226(b)(2)), as amended by
section 350, is further amended--
(A) in subparagraph (A) (as designated by
the amendment made by subsection (a)(1) of that
section) by designating the first, second, and
third sentences as clauses (i), (ii), and
(iii), respectively;
(B) by moving clause (ii), as so
designated, so as to begin immediately after
and below clause (i);
(C) by moving clause (iii), as so
designated, so as to begin immediately after
and below clause (ii);
(D) in clause (i) of subparagraph (A) (as
designated by subparagraph (A) of this
paragraph) by striking ``five thousand one
hundred and twenty'' and inserting ``5,760'';
and
(E) by adding at the end the following:
``(iv) No lease issued under this paragraph shall
be included in any chargeability limitation associated
with oil and gas leases.''.
(2) Section 21.--Section 21(a) of the Mineral
Leasing Act (30 U.S.C. 241(a)) is amended--
(A) by striking ``(a) That the Secretary''
and inserting the following:
``(a)(1) The Secretary'';
(B) by striking ``; that no lease'' and
inserting a period, followed by the following:
``(2) No lease'';
(C) by striking ``Leases may be for'' and
inserting the following:
``(3) Leases may be for'';
(D) by striking ``For the privilege'' and
inserting the following:
``(4) For the privilege'';
(E) in paragraph (2) (as designated by
subparagraph (B) of this paragraph) by striking
``five thousand one hundred and twenty'' and
inserting ``5,760'';
(F) in paragraph (4) (as designated by
subparagraph (D) of this paragraph) by striking
``rate of 50 cents per acre'' and inserting
``rate of $2.00 per acre'';
(G)(i) by striking ``: Provided further,
That not more than one lease shall be granted
under this section to any'' and inserting ``:
Provided further, That no''; and
(ii) by striking ``except that with respect
to leases for'' and inserting ``shall acquire
or hold more than 50,000 acres of oil shale
leases in any one State. For''; and
(H) by adding at the end the following:
``(5) No lease issued under this section shall be
included in any chargeability limitation associated
with oil and gas leases.''.
(k) Interagency Coordination and Expeditious Review of
Permitting Process.--
(1) Department of the interior as lead agency.--
Upon written request of a prospective applicant for
Federal authorization to develop a proposed oil shale
or tar sands project, the Department of the Interior
shall act as the lead Federal agency for the purposes
of coordinating all applicable Federal authorizations
and environmental reviews. To the maximum extent
practicable under applicable Federal law, the Secretary
shall coordinate this Federal authorization and review
process with any Indian tribes and State and local
agencies responsible for conducting any separate
permitting and environmental reviews.
(2) Implementing regulations.--Not later than 6
months after the date of enactment of this Act, the
Secretary shall issue any regulations necessary to
implement this subsection.
(l) Cost-shared Demonstration Technologies.--
(1) Identification.--The Secretary of Energy shall
identify technologies for the development of oil shale
and tar sands that--
(A) are ready for demonstration at a
commercially-representative scale; and
(B) have a high probability of leading to
commercial production.
(2) Assistance.--For each technology identified
under paragraph (1), the Secretary of Energy may
provide--
(A) technical assistance;
(B) assistance in meeting environmental and
regulatory requirements; and
(C) cost-sharing assistance.
(m) National Oil Shale and Tar Sands Assessment.--
(1) Assessment.--
(A) In general.--The Secretary shall carry
out a national assessment of oil shale and tar
sands resources for the purposes of evaluating
and mapping oil shale and tar sands deposits,
in the geographic areas described in
subparagraph (B). In conducting such an
assessment, the Secretary shall make use of the
extensive geological assessment work for oil
shale and tar sands already conducted by the
United States Geological Survey.
(B) Geographic areas.--The geographic areas
referred to in subparagraph (A), listed in the
order in which the Secretary shall assign
priority, are--
(i) the Green River Region of the
States of Colorado, Utah, and Wyoming;
(ii) the Devonian oil shales and
other hydrocarbon-bearing rocks having
the nomenclature of ``shale'' located
east of the Mississippi River; and
(iii) any remaining area in the
central and western United States
(including the State of Alaska) that
contains oil shale and tar sands, as
determined by the Secretary.
(2) Use of state surveys and universities.--In
carrying out the assessment under paragraph (1), the
Secretary may request assistance from any State-
administered geological survey or university.
(n) Land Exchanges.--
(1) In general.--To facilitate the recovery of oil
shale and tar sands, especially in areas where Federal,
State, and private lands are intermingled, the
Secretary shall consider the use of land exchanges
where appropriate and feasible to consolidate land
ownership and mineral interests into manageable areas.
(2) Identification and priority of public lands.--
The Secretary shall identify public lands containing
deposits of oil shale or tar sands within the Green
River, Piceance Creek, Uintah, and Washakie geologic
basins, and shall give priority to implementing land
exchanges within those basins. The Secretary shall
consider the geology of the respective basin in
determining the optimum size of the lands to be
consolidated.
(3) Compliance with section 206 of flpma.--A land
exchange undertaken in furtherance of this subsection
shall be implemented in accordance with section 206 of
the Federal Land Policy and Management Act of 1976 (43
U.S.C. 1716).
(o) Royalty Rates for Leases.--The Secretary shall
establish royalties, fees, rentals, bonus, or other payments
for leases under this section that shall--
(1) encourage development of the oil shale and tar
sands resource; and
(2) ensure a fair return to the United States.
(p) Heavy Oil Technical and Economic Assessment.--The
Secretary of Energy shall update the 1987 technical and
economic assessment of domestic heavy oil resources that was
prepared by the Interstate Oil and Gas Compact Commission. Such
an update should include all of North America and cover all
unconventional oil, including heavy oil, tar sands (oil sands),
and oil shale.
(q) Procurement of Unconventional Fuels by the Department
of Defense.--
(1) In general.--Chapter 141 of title 10, United
States Code, is amended by inserting after section 2398
the following:
``Sec. 2398a. Procurement of fuel derived from coal, oil shale, and tar
sands
``(a) Use of Fuel to Meet Department of Defense Needs.--The
Secretary of Defense shall develop a strategy to use fuel
produced, in whole or in part, from coal, oil shale, and tar
sands (referred to in this section as a `covered fuel') that
are extracted by either mining or in-situ methods and refined
or otherwise processed in the United States in order to assist
in meeting the fuel requirements of the Department of Defense
when the Secretary determines that it is in the national
interest.
``(b) Authority To Procure.--The Secretary of Defense may
enter into 1 or more contracts or other agreements (that meet
the requirements of this section) to procure a covered fuel to
meet 1 or more fuel requirements of the Department of Defense.
``(c) Clean Fuel Requirements.--A covered fuel may be
procured under subsection (b) only if the covered fuel meets
such standards for clean fuel produced from domestic sources as
the Secretary of Defense shall establish for purposes of this
section in consultation with the Department of Energy.
``(d) Multiyear Contract Authority.--Subject to applicable
provisions of law, any contract or other agreement for the
procurement of covered fuel under subsection (b) may be for 1
or more years at the election of the Secretary of Defense.
``(e) Fuel Source Analysis.--In order to facilitate the
procurement by the Department of Defense of covered fuel under
subsection (b), the Secretary of Defense may carry out a
comprehensive assessment of current and potential locations in
the United States for the supply of covered fuel to the
Department.''.
(2) Clerical amendment.--The table of sections for
chapter 141 of title 10, United States Code, is amended
by inserting after the item relating to section 2398
the following:
``2398a. Procurement of fuel derived from coal, oil shale, and tar
sands''.
(r) State Water Rights.--Nothing in this section preempts
or affects any State water law or interstate compact relating
to water.
(s) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 370. FINGER LAKES WITHDRAWAL.
All Federal land within the boundary of Finger Lakes
National Forest in the State of New York is withdrawn from--
(1) all forms of entry, appropriation, or disposal
under the public land laws; and
(2) disposition under all laws relating to oil and
gas leasing.
SEC. 371. REINSTATEMENT OF LEASES.
(a) Leases Terminated for Certain Failure to Pay Rental.--
Notwithstanding section 31(d)(2)(B) of the Mineral Leasing Act
(30 U.S.C. 188(d)(2)(B)) as in effect before the effective date
of this section, and notwithstanding the amendment made by
subsection (b) of thissection, the Secretary of the Interior
may reinstate any oil and gas lease issued under that Act that was
terminated for failure of a lessee to pay the full amount of rental on
or before the anniversary date of the lease, during the period
beginning on September 1, 2001, and ending on June 30, 2004, if--
(1) not later than 120 days after the date of
enactment of this Act, the lessee--
(A) files a petition for reinstatement of
the lease;
(B) complies with the conditions of section
31(e) of the Mineral Leasing Act (30 U.S.C.
188(e)); and
(C) certifies that the lessee did not
receive a notice of termination by the date
that was 13 months before the date of
termination; and
(2) the land is available for leasing.
(b) Deadline for Petitions, Generally.--Section 31(d)(2) of
the Mineral Leasing Act (30 U.S.C. 188(d)(2)) is amended by
striking subparagraphs (A) and (B) and inserting the following:
``(A) with respect to any lease that
terminated under subsection (b) on or before
the date of the enactment of the Energy Policy
Act of 2005, a petition for reinstatement
(together with the required back rental and
royalty accruing after the date of termination)
is filed on or before the earlier of--
``(i) 60 days after the lessee
receives from the Secretary notice of
termination, whether by return of check
or by any other form of actual notice;
or
``(ii) 15 months after the
termination of the lease; or
``(B) with respect to any lease that
terminates under subsection (b) after the date
of the enactment of the Energy Policy Act of
2005, a petition for reinstatement (together
with the required back rental and royalty
accruing after the date of termination) is
filed on or before the earlier of--
``(i) 60 days after receipt of the
notice of termination sent by the
Secretary by certified mail to all
lessees of record; or
``(ii) 24 months after the
termination of the lease.''.
SEC. 372. CONSULTATION REGARDING ENERGY RIGHTS-OF-WAY ON PUBLIC LAND.
(a) Memorandum of Understanding.--
(1) In general.--Not later than 6 months after the
date of enactment of this Act, the Secretary of Energy,
in consultation with the Secretary of the Interior, the
Secretary of Agriculture, and the Secretary of Defense
with respect to lands under their respective
jurisdictions, shall enter into a memorandum of
understanding to coordinate all applicable Federal
authorizations and environmental reviews relating to a
proposed or existing utility facility. To the maximum
extent practicable under applicable law, the Secretary
of Energy shall, to ensure timely review and permit
decisions, coordinate such authorizations and reviews
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.
(2) Contents.--The memorandum of understanding
shall include provisions that--
(A) establish--
(i) a unified right-of-way
application form; and
(ii) an administrative procedure
for processing right-of-way
applications, including lines of
authority, steps in application
processing, and timeframes for
application processing;
(B) provide for coordination of planning
relating to the granting of the rights-of-way;
(C) provide for 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
(D) provide for coordination of use of
right-of-way stipulations to achieve
consistency.
(b) Natural Gas Pipelines.--
(1) In general.--With respect to permitting
activities for interstate natural gas pipelines, the
May 2002 document entitled ``Interagency Agreement On
Early Coordination Of Required Environmental And
Historic Preservation Reviews Conducted In Conjunction
With The Issuance Of Authorizations To Construct And
Operate Interstate Natural Gas Pipelines Certificated
By The Federal Energy Regulatory Commission'' shall
constitute compliance with subsection (a).
(2) Report.--
(A) In general.--Not later than 1 year
after the date of enactment of this Act, and
every 2 years thereafter, agencies that are
signatories to the document referred to in
paragraph (1) shall transmit to Congress a
report on how the agencies under the
jurisdiction of the Secretaries are
incorporating and implementing the provisions
of the document referred to in paragraph (1).
(B) Contents.--The report shall address--
(i) efforts to implement the
provisions of the document referred to
in paragraph (1);
(ii) whether the efforts have had a
streamlining effect;
(iii) further improvements to the
permitting process of the agency; and
(iv) recommendations for inclusion
of State and tribal governments in a
coordinated permitting process.
(c) Definition of Utility Facility.--In this section, the
term ``utility facility'' means any privately, publicly, or
cooperatively owned line, facility, or system--
(1) for the transportation of--
(A) oil, natural gas, synthetic liquid
fuel, or gaseous fuel;
(B) any refined product produced from oil,
natural gas, synthetic liquid fuel, or gaseous
fuel; or
(C) products in support of the production
of material referred to in subparagraph (A) or
(B);
(2) for storage and terminal facilities in
connection with the production of material referred to
in paragraph (1); or
(3) for the generation, transmission, and
distribution of electric energy.
SEC. 373. SENSE OF CONGRESS REGARDING DEVELOPMENT OF MINERALS UNDER
PADRE ISLAND NATIONAL SEASHORE.
(a) Findings.--Congress finds the following:
(1) Pursuant to Public Law 87-712 (16 U.S.C. 459d
et seq.; popularly known as the ``Federal Enabling
Act'') and various deeds and actions under that Act,
the United States is the owner of only the surface
estate of certain lands constituting the Padre Island
National Seashore.
(2) Ownership of the oil, gas, and other minerals
in the subsurface estate of the lands constituting the
Padre Island National Seashore was never acquired by
the United States, and ownership of those interests is
held by the State of Texas and private parties.
(3) Public Law 87-712 (16 U.S.C. 459d et seq.)--
(A) expressly contemplated that the United
States would recognize the ownership and future
development of the oil, gas, and other minerals
in the subsurface estate of the lands
constituting the Padre Island National Seashore
by the owners and their mineral lessees; and
(B) recognized that approval of the State
of Texas was required to create Padre Island
National Seashore.
(4) Approval was given for the creation of Padre
Island National Seashore by the State of Texas through
Tex. Rev. Civ. Stat. Ann. Art. 6077(t) (Vernon 1970),
which expressly recognized that development of the oil,
gas, and other minerals in the subsurface of the lands
constituting Padre Island National Seashore would be
conducted with full rights of ingress and egress under
the laws of the State of Texas.
(b) Sense of Congress.--It is the sense of Congress that
with regard to Federal law, any regulation of the development
of oil, gas, or other minerals in the subsurface of the lands
constituting Padre Island National Seashore should be made as
if those lands retained the status that the lands had on
September 27, 1962.
SEC. 374. LIVINGSTON PARISH MINERAL RIGHTS TRANSFER.
Section 102 of Public Law 102-562 (106 Stat. 4234) is
amended by striking subsection (b) and inserting the following:
``(b) Reservation of Oil and Gas Rights and Conveyance of
Remaining Mineral Rights.--Subject to the limitations set forth
in subsection (c), the United States hereby excepts and
reserves from the provisions of subsection (a), all rights to
oil and gas underlying suchlands, along with the right to
explore for, and produce the oil and gas under applicable law and such
regulations as the Secretary of the Interior may prescribe. Not later
than 180 days after the date of enactment of the Energy Policy Act of
2005, the Secretary of the Interior shall convey the remaining mineral
rights to the parties who as of the date of enactment of the Energy
Policy Act of 2005 would be recognized as holders of a right, title, or
interest to any portion of such minerals under the laws of the State of
Louisiana, but for the interest of the United States in such minerals.
``(c) Oil and Gas Resource Assessment and Report.--The
United States Geological Survey shall conduct a resource
assessment and publish a report of the findings of such
resource assessment (`USGS Assessment and Report') within one
year of the date of enactment of the Energy Policy Act of 2005.
The USGS Assessment and Report shall provide an assessment of
all oil and gas resources underlying the certain lands in
Livingston Parish, Louisiana, as described in section 103 (the
`Livingston Parish lands'). Upon a finding by the Secretary of
the Interior based upon the USGS Assessment and Report that it
is unlikely that economically recoverable oil and gas resources
are present, the Secretary shall convey all rights to oil and
gas underlying such lands to the recipients, or their
successors, heirs, or assigns, of the conveyances under
subsection (b). Such further conveyances shall be made within
180 days after a finding by the Secretary that it is unlikely
that economically recoverable oil and gas resources are
present.''.
Subtitle G--Miscellaneous
SEC. 381. DEADLINE FOR DECISION ON APPEALS OF CONSISTENCY DETERMINATION
UNDER THE COASTAL ZONE MANAGEMENT ACT OF 1972.
Section 319 of the Coastal Zone Management Act of 1972 (16
U.S.C. 1465) is amended to read as follows:
``APPEALS TO THE SECRETARY
``Sec. 319. (a) Notice.--Not later than 30 days after the
date of the filing of an appeal to the Secretary of a
consistency determination under section 307, the Secretary
shall publish an initial notice in the Federal Register.
``(b) Closure of Record.--
``(1) In general.--Not later than the end of the
160-day period beginning on the date of publication of
an initial notice under subsection (a), except as
provided in paragraph (3), the Secretary shall
immediately close the decision record and receive no
more filings on the appeal.
``(2) Notice.--After closing the administrative
record, the Secretary shall immediately publish a
notice in the Federal Register that the administrative
record has been closed.
``(3) Exception.--
``(A) In general.--Subject to subparagraph
(B), during the 160-day period described in
paragraph (1), the Secretary may stay the
closing of the decision record--
``(i) for a specific period
mutually agreed to in writing by the
appellant and the State agency; or
``(ii) as the Secretary determines
necessary to receive, on an expedited
basis--
``(I) any supplemental
information specifically
requested by the Secretary to
complete a consistency review
under this Act; or
``(II) any clarifying
information submitted by a
party to the proceeding related
to information in the
consolidated record compiled by
the lead Federal permitting
agency.
``(B) Applicability.--The Secretary may
only stay the 160-day period described in
paragraph (1) for a period not to exceed 60
days.
``(c) Deadline for Decision.--
``(1) In general.--Not later than 60 days after the
date of publication of a Federal Register notice
stating when the decision record for an appeal has been
closed, the Secretary shall issue a decision or publish
a notice in the Federal Register explaining why a
decision cannot be issued at that time.
``(2) Subsequent decision.--Not later than 15 days
after the date of publication of a Federal Register
notice explaining why a decision cannot be issued
within the 60-day period, the Secretary shall issue a
decision.''.
SEC. 382. APPEALS RELATING TO OFFSHORE MINERAL DEVELOPMENT.
For any Federal administrative agency proceeding that is an
appeal or review under section 319 of the Coastal Zone
Management Act of 1972 (16 U.S.C. 1465), as amended by this
Act, related to any Federal authorization for the permitting,
approval, or other authorization of an energy project, the lead
Federal permitting agency for the project shall, with the
cooperation of Federal and State administrative agencies,
maintain a consolidated record of all decisions made or actions
taken by the lead agency or by another Federal or State
administrative agency or officer. Such record shall be the
initial record for appeals or reviews under that Act, provided
that the record may be supplemented as expressly provided
pursuant to section 319 of that Act.
SEC. 383. ROYALTY PAYMENTS UNDER LEASES UNDER THE OUTER CONTINENTAL
SHELF LANDS ACT.
(a) Royalty Relief.--
(1) In general.--For purposes of providing
compensation for lessees and a State for which amounts
are authorized by section 6004(c) of the Oil Pollution
Act of 1990 (Public Law 101-380), a lessee may withhold
from payment any royalty due and owing to the United
States under any leases under the Outer Continental
Shelf Lands Act (43 U.S.C. 1301 et seq.) for offshore
oil or gas production from a covered lease tract if, on
or before the date that the payment is due and payable
to the United States, the lessee makes a payment to the
State of 44 cents for every $1 of royalty withheld.
(2) Treatment of amounts.--Any royalty withheld by
a lessee in accordance with this section (including any
portion thereof that is paid to the State under
paragraph (1)) shall be treated as paid for purposes of
satisfaction of the royalty obligations of the lessee
to the United States.
(3) Certification of withheld amounts.--The
Secretary of the Treasury shall--
(A) determine the amount of royalty
withheld by a lessee under this section; and
(B) promptly publish a certification when
the total amount of royalty withheld by the
lessee under this section is equal to--
(i) the dollar amount stated at
page 47 of Senate Report number 101-
534, which is designated therein as the
total drainage claim for the West Delta
field; plus
(ii) interest as described at page
47 of that Report.
(b) Period of Royalty Relief.--Subsection (a) shall apply
to royalty amounts that are due and payable in the period
beginning on October 1, 2006, and ending on the date on which
the Secretary of the Treasury publishes a certification under
subsection (a)(3)(B).
(c) Definitions.--As used in this section:
(1) Covered lease tract.--The term ``covered lease
tract'' means a leased tract (or portion of a leased
tract)--
(A) lying seaward of the zone defined and
governed by section 8(g) of the Outer
Continental Shelf Lands Act (43 U.S.C.
1337(g)); or
(B) lying within such zone but to which
such section does not apply.
(2) Lessee.--The term ``lessee''--
(A) means a person or entity that, on the
date of the enactment of the Oil Pollution Act
of 1990, was a lessee referred to in section
6004(c) of that Act (as in effect on that date
of the enactment), but did not hold lease
rights in Federal offshore lease OCS-G-5669;
and
(B) includes successors and affiliates of a
person or entity described in subparagraph (A).
SEC. 384. COASTAL IMPACT ASSISTANCE PROGRAM.
Section 31 of the Outer Continental Shelf Lands Act (43
U.S.C. 1356a) is amended to read as follows:
``SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM.
``(a) Definitions.--In this section:
``(1) Coastal political subdivision.--The term
`coastal political subdivision' means a political
subdivision of a coastal State any part of which
political subdivision is--
``(A) within the coastal zone (as defined
in section 304 of the Coastal Zone Management
Act of 1972 (16 U.S.C. 1453)) of the coastal
State as of the date of enactment of the Energy
Policy Act of 2005; and
``(B) not more than 200 nautical miles from
the geographic center of any leased tract.
``(2) Coastal population.--The term `coastal
population' means the population, as determined by the
most recent official data of the Census Bureau, of each
political subdivision any part of which lies within the
designated coastal boundary of a State (as defined in a
State's coastal zone management program under the
Coastal Zone Management Act of 1972 (16 U.S.C. 1451 et
seq.)).
``(3) Coastal state.--The term `coastal State' has
the meaning given the term in section 304 of the
Coastal Zone Management Act of 1972 (16 U.S.C. 1453).
``(4) Coastline.--The term `coastline' has the
meaning given the term `coast line' in section 2 of the
Submerged Lands Act (43 U.S.C. 1301).
``(5) Distance.--The term `distance' means the
minimum great circle distance, measured in statute
miles.
``(6) Leased tract.--The term `leased tract' means
a tract that is subject to a lease under section 6 or 8
for the purpose of drilling for, developing, and
producing oil or natural gas resources.
``(7) Leasing moratoria.--The term `leasing
moratoria' means the prohibitions on preleasing,
leasing, and related activities on any geographic area
of the outer Continental Shelf as contained in sections
107 through 109 of division E of the Consolidated
Appropriations Act, 2005 (Public Law 108-447; 118 Stat.
3063).
``(8) Political subdivision.--The term `political
subdivision' means the local political jurisdiction
immediately below the level of State government,
including counties, parishes, and boroughs.
``(9) Producing state.--
``(A) In general.--The term `producing
State' means a coastal State that has a coastal
seaward boundary within 200 nautical miles of
the geographic center of a leased tract within
any area of the outer Continental Shelf.
``(B) Exclusion.--The term `producing
State' does not include a producing State, a
majority of the coastline of which is subject
to leasing moratoria, unless production was
occurring on January 1, 2005, from a lease
within 10 nautical miles of the coastline of
that State.
``(10) Qualified outer continental shelf
revenues.--
``(A) In general.--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--
``(i) lying--
``(I) seaward of the zone
covered by section 8(g); or
``(II) within that zone,
but to which section 8(g) does
not apply; and
``(ii) the geographic center of
which lies within a distance of 200
nautical miles from any part of the
coastline of any coastal State.
``(B) Inclusions.--The term `qualified
Outer Continental Shelf revenues' includes
bonus bids, rents, royalties (including
payments for royalty taken in kind and sold),
net profit share payments, and related late-
payment interest from natural gas and oil
leases issued under this Act.
``(C) Exclusion.--The term `qualified Outer
Continental Shelf revenues' does not include
any revenues from a leased tract or portion of
a leased tract that is located in a geographic
area subject to a leasing moratorium on January
1, 2005, unless the lease was in production on
January 1, 2005.
``(b) Payments to Producing States and Coastal Political
Subdivisions.--
``(1) In general.--The Secretary shall, without
further appropriation, disburse to producing States and
coastal political subdivisions in accordance with this
section $250,000,000 for each of fiscal years 2007
through 2010.
``(2) Disbursement.--In each fiscal year, the
Secretary shall disburse to each producing State for
which the Secretary has approved a plan under
subsection (c), and to coastal political subdivisions
under paragraph (4), such funds as are allocated to the
producing State or coastal political subdivision,
respectively, under this section for the fiscal year.
``(3) Allocation among producing states.--
``(A) In general.--Except as provided in
subparagraph (C) and subject to subparagraph
(D), the amounts available under paragraph (1)
shall be allocated to each producing State
based on the ratio that--
``(i) the amount of qualified outer
Continental Shelf revenues generated
off the coastline of the producing
State; bears to
``(ii) the amount of qualified
outer Continental Shelf revenues
generated off the coastline of all
producing States.
``(B) Amount of outer continental shelf
revenues.--For purposes of subparagraph (A)--
``(i) the amount of qualified outer
Continental Shelf revenues for each of
fiscal years 2007 and 2008 shall be
determined using qualified outer
Continental Shelf revenues received for
fiscal year 2006; and
``(ii) the amount of qualified
outer Continental Shelf revenues for
each of fiscal years 2009 and 2010
shall be determined using qualified
outer Continental Shelf revenues
received for fiscal year 2008.
``(C) Multiple producing states.--In a case
in which more than 1 producing State is located
within 200 nautical miles of any portion of a
leased tract, the amount allocated to each
producing State for the leased tract shall be
inversely proportional to the distance
between--
``(i) the nearest point on the
coastline of the producing State; and
``(ii) the geographic center of the
leased tract.
``(D) Minimum allocation.--The amount
allocated to a producing State under
subparagraph (A) shall be at least 1 percent of
the amounts available under paragraph (1).
``(4) Payments to coastal political subdivisions.--
``(A) In general.--The Secretary shall pay
35 percent of the allocable share of each
producing State, as determined under paragraph
(3) to the coastal political subdivisions in
the producing State.
``(B) Formula.--Of the amount paid by the
Secretary to coastal political subdivisions
under subparagraph (A)--
``(i) 25 percent shall be allocated
to each coastal political subdivision
in the proportion that--
``(I) the coastal
population of the coastal
political subdivision; bears to
``(II) the coastal
population of all coastal
political subdivisions in the
producing State;
``(ii) 25 percent shall be
allocated to each coastal political
subdivision in the proportion that--
``(I) the number of miles
of coastline of the coastal
political subdivision; bears to
``(II) the number of miles
of coastline of all coastal
political subdivisions in the
producing State; and
``(iii) 50 percent shall be
allocated in amounts that are inversely
proportional to the respective
distances between the points in each
coastal political subdivision that are
closest to the geographic center of
each leased tract, as determined by the
Secretary.
``(C) Exception for the state of
louisiana.--For the purposes of subparagraph
(B)(ii), the coastline for coastal political
subdivisions in the State of Louisiana without
a coastline shall be considered to be \1/3\ the
average length of the coastline of all coastal
political subdivisions with a coastline in the
State of Louisiana.
``(D) Exception for the state of alaska.--
For the purposes of carrying out subparagraph
(B)(iii) in the State of Alaska, the amounts
allocated shall be divided equally among the 2
coastal political subdivisions that are closest
to the geographic center of a leased tract.
``(E) Exclusion of certain leased tracts.--
For purposes of subparagraph (B)(iii), a leased
tract or portion of a leased tract shall be
excluded if the tract or portion of a leased
tract is located in a geographic area subject
to a leasing moratorium on January 1, 2005,
unless the lease was in production on that
date.
``(5) No approved plan.--
``(A) In general.--Subject to subparagraph
(B) and except as provided in subparagraph (C),
in a case in which any amount allocated to a
producing State or coastal political
subdivision under paragraph (4) or (5) is not
disbursed because the producing State does not
have in effect a plan that has been approved by
the Secretary under subsection (c), the
Secretary shall allocate the undisbursed amount
equally among all other producing States.
``(B) Retention of allocation.--The
Secretary shall hold in escrow an undisbursed
amount described in subparagraph (A) until such
date as the final appeal regarding the
disapproval of a plan submitted under
subsection (c) is decided.
``(C) Waiver.--The Secretary may waive
subparagraph (A) with respect to an allocated
share of a producing State and hold the
allocable share in escrow if the Secretary
determines that the producing State is making a
good faith effort to develop and submit, or
update, a plan in accordance with subsection
(c).
``(c) Coastal Impact Assistance Plan.--
``(1) Submission of state plans.--
``(A) In general.--Not later than July 1,
2008, the Governor of a producing State shall
submit to the Secretary a coastal impact
assistance plan.
``(B) Public participation.--In carrying
out subparagraph (A), the Governor shall
solicit local input and provide for public
participation in the development of the plan.
``(2) Approval.--
``(A) In general.--The Secretary shall
approve a plan of a producing State submitted
under paragraph (1) before disbursing any
amount to the producing State, or to a coastal
political subdivision located in the producing
State, under this section.
``(B) Components.--The Secretary shall
approve a plan submitted under paragraph (1)
if--
``(i) the Secretary determines that
the plan is consistent with the uses
described in subsection (d); and
``(ii) the plan contains--
``(I) the name of the State
agency that will have the
authority to represent and act
on behalf of the producing
State in dealing with the
Secretary for purposes of this
section;
``(II) a program for the
implementation of the plan that
describes how the amounts
provided under this section to
the producing State will be
used;
``(III) for each coastal
political subdivision that
receives an amount under this
section--
``(aa) the name of
a contact person; and
``(bb) a
description of how the
coastal political
subdivision will use
amounts provided under
this section;
``(IV) a certification by
the Governor that ample
opportunity has been provided
for public participation in the
development and revision of the
plan; and
``(V) a description of
measures that will be taken to
determine the availability of
assistance from other relevant
Federal resources and programs.
``(3) Amendment.--Any amendment to a plan submitted
under paragraph (1) shall be--
``(A) developed in accordance with this
subsection; and
``(B) submitted to the Secretary for
approval or disapproval under paragraph (4).
``(4) Procedure.--Not later than 90 days after the
date on which a plan or amendment to a plan is
submitted under paragraph (1) or (3), the Secretary
shall approve or disapprove the plan or amendment.
``(d) Authorized Uses.--
``(1) In general.--A producing State or coastal
political subdivision shall use all amounts received
under this section, including any amount deposited in a
trust fund that is administered by the State or coastal
political subdivision and dedicated to uses consistent
with this section, in accordance with all applicable
Federal and State law, only for 1 or more of the
following purposes:
``(A) Projects and activities for the
conservation, protection, or restoration of
coastal areas, including wetland.
``(B) Mitigation of damage to fish,
wildlife, or natural resources.
``(C) Planning assistance and the
administrative costs of complying with this
section.
``(D) Implementation of a federally-
approved marine, coastal, or comprehensive
conservation management plan.
``(E) Mitigation of the impact of outer
Continental Shelf activities through funding of
onshore infrastructure projects and public
service needs.
``(2) Compliance with authorized uses.--If the
Secretary determines that any expenditure made by a
producing State or coastal political subdivision is not
consistent with this subsection, the Secretary shall
not disburse any additional amount under this section
to the producing State or the coastal political
subdivision until such time as all amounts obligated
for unauthorized uses have been repaid or reobligated
for authorized uses.
``(3) Limitation.--Not more than 23 percent of
amounts received by a producing State or coastal
political subdivision for any 1 fiscal year shall be
used for the purposes described subparagraphs (C) and
(E) of paragraph (1).''.
SEC. 385. STUDY OF AVAILABILITY OF SKILLED WORKERS.
(a) In General.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the National Academy of Sciences shall conduct a study of the
short-term and long-term availability of skilled workers to
meet the energy and mineral security requirements of the United
States.
(b) Inclusions.--The study shall include an analysis of--
(1) the need for and availability of workers for
the oil, gas, and mineral industries;
(2) the availability of skilled labor at both entry
level and more senior levels; and
(3) recommendations for future actions needed to
meet future labor requirements.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that describes the results of the study.
SEC. 386. GREAT LAKES OIL AND GAS DRILLING BAN.
No Federal or State permit or lease shall be issued for new
oil and gas slant, directional, or offshore drilling in or
under one or more of the Great Lakes.
SEC. 387. FEDERAL COALBED METHANE REGULATION.
Any State currently on the list of Affected States
established under section 1339(b) of the Energy Policy Act of
1992 (42 U.S.C. 13368(b)) shall be removed from thelist if, not
later than 3 years after the date of enactment of this Act, the State
takes, or prior to the date of enactment has taken, any of the actions
required for removal from the list under such section 1339(b).
SEC. 388. 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:
``(p) Leases, Easements, or Rights-of-way for Energy and
Related Purposes.--
``(1) In general.--The Secretary, in consultation
with the Secretary of the Department in which the Coast
Guard is operating and other relevant departments and
agencies of the Federal Government, may grant a lease,
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.), the Ocean Thermal Energy Conversion Act of 1980
(42 U.S.C. 9101 et seq.), or other applicable law, if
those activities--
``(A) support exploration, development,
production, or storage of oil or natural gas,
except that a lease, easement, or right-of-way
shall not be granted in an area in which oil
and gas preleasing, leasing, and related
activities are prohibited by a moratorium;
``(B) support transportation of oil or
natural gas, excluding shipping activities;
``(C) produce or support production,
transportation, or transmission of energy from
sources other than oil and gas; or
``(D) use, for energy-related purposes or
for other authorized marine-related purposes,
facilities currently or previously used for
activities authorized under this Act, except
that any oil and gas energy-related uses shall
not be authorized in areas in which oil and gas
preleasing, leasing, and related activities are
prohibited by a moratorium.
``(2) Payments and revenues.--(A) The Secretary
shall establish royalties, fees, rentals, bonuses, or
other payments to ensure a fair return to the United
States for any lease, easement, or right-of-way granted
under this subsection.
``(B) The Secretary shall provide for the payment
of 27 percent of the revenues received by the Federal
Government as a result of payments under this section
from projects that are located wholly or partially
within the area extending three nautical miles seaward
of State submerged lands. Payments shall be made based
on a formula established by the Secretary by rulemaking
no later than 180 days after the date of enactment of
this section that provides for equitable distribution,
based on proximity to the project, among coastal states
that have a coastline that is located within 15 miles
of the geographic center of the project.
``(3) Competitive or noncompetitive basis.--Except
with respect to projects that meet the criteria
established under section 388(d) of the Energy Policy
Act of 2005, the Secretary shall issue a lease,
easement, or right-of-way under paragraph (1) on a
competitive basis unless the Secretary determines after
public notice of a proposed lease, easement, or right-
of-way that there is no competitive interest.
``(4) Requirements.--The Secretary shall ensure
that any activity under this subsection is carried out
in a manner that provides for--
``(A) safety;
``(B) protection of the environment;
``(C) prevention of waste;
``(D) conservation of the natural resources
of the outer Continental Shelf;
``(E) coordination with relevant Federal
agencies;
``(F) protection of national security
interests of the United States;
``(G) protection of correlative rights in
the outer Continental Shelf;
``(H) a fair return to the United States
for any lease, easement, or right-of-way under
this subsection;
``(I) prevention of interference with
reasonable uses (as determined by the
Secretary) of the exclusive economic zone, the
high seas, and the territorial seas;
``(J) consideration of--
``(i) the location of, and any
schedule relating to, a lease,
easement, or right-of-way for an area
of the outer Continental Shelf; and
``(ii) any other use of the sea or
seabed, including use for a fishery, a
sealane, a potential site of a
deepwater port, or navigation;
``(K) public notice and comment on any
proposal submitted for a lease, easement, or
right-of-way under this subsection; and
``(L) oversight, inspection, research,
monitoring, and enforcement relating to a
lease, easement, or right-of-way under this
subsection.
``(5) Lease duration, suspension, and
cancellation.--The Secretary shall provide for the
duration, issuance, transfer, renewal, suspension, and
cancellation of a lease, easement, or right-of-way
under this subsection.
``(6) Security.--The Secretary shall require the
holder of a lease, easement, or right-of-way granted
under this subsection to--
``(A) furnish a surety bond or other form
of security, as prescribed by the Secretary;
``(B) comply with such other requirements
as the Secretary considers necessary to protect
the interests of the public and the United
States; and
``(C) provide for the restoration of the
lease, easement, or right-of-way.
``(7) Coordination and consultation with affected
state and local governments.--The Secretary shall
provide for coordination and consultation with the
Governor of any State or the executive of any local
government that may be affected by a lease, easement,
or right-of-way under this subsection.
``(8) Regulations.--Not later than 270 days after
the date of enactment of the Energy Policy Act of 2005,
the Secretary, in consultation with the Secretary of
Defense, the Secretary of the Department in which the
Coast Guard is operating, the Secretary of Commerce,
heads of other relevant departments and agencies of the
Federal Government, and the Governor of any affected
State, shall issue any necessary regulations to carry
out this subsection.
``(9) Effect of subsection.--Nothing in this
subsection displaces, supersedes, limits, or modifies
the jurisdiction, responsibility, or authority of any
Federal or State agency under any other Federal law.
``(10) Applicability.--This subsection does not
apply to any area on the outer Continental Shelf 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.''.
(b) Coordinated OCS Mapping Initiative.--
(1) In general.--The Secretary of the Interior, in
cooperation with the Secretary of Commerce, the
Commandant of the Coast Guard, and the Secretary of
Defense, shall establish an interagency comprehensive
digital mapping initiative for the outer Continental
Shelf to assist in decisionmaking relating to the
siting of activities under subsection (p) of section 8
of the Outer Continental Shelf Lands Act (43 U.S.C.
1337) (as added by subsection (a)).
(2) Use of data.--The mapping initiative shall use,
and develop procedures for accessing, data collected
before the date on which the mapping initiative is
established, to the maximum extent practicable.
(3) Inclusions.--Mapping carried out under the
mapping initiative shall include an indication of the
locations on the outer Continental Shelf of--
(A) Federally-permitted activities;
(B) obstructions to navigation;
(C) submerged cultural resources;
(D) undersea cables;
(E) offshore aquaculture projects; and
(F) any area designated for the purpose of
safety, national security, environmental
protection, or conservation and management of
living marine resources.
(c) Conforming Amendment.--Section 8 of the Outer
Continental Shelf Lands Act (43 U.S.C. 1337) is amended by
striking the section heading and inserting the following:
``Leases, Easements, and Rights-of-way on the Outer Continental
Shelf.--''.
(d) Savings Provision.--Nothing in the amendment made by
subsection (a) requires the resubmittal of any document that
was previously submitted or the reauthorization of any action
that was previously authorized with respect to a project for
which, before the date of enactment of this Act--
(1) an offshore test facility has been constructed;
or
(2) a request for a proposal has been issued by a
public authority.
(e) State Claims to Jurisdiction Over Submerged Lands.--
Nothing in this section shall be construed to alter, limit, or
modify any claim of any State to any jurisdiction over, or any
right, title, or interest in, any submerged lands.
SEC. 389. OIL SPILL RECOVERY INSTITUTE.
Title V of the Oil Pollution Act of 1990 (33 U.S.C. 2731 et
seq.) is amended--
(1) in section 5001(i), by striking ``September 30,
2012'' and inserting ``1 year after the date on which
the Secretary, in consultation with the Secretary of
the Interior, determines that oil and gas exploration,
development, and production in the State of Alaska have
ceased''; and
(2) in section 5006(c), by striking ``October 1,
2012'' and inserting ``1 year after the date on which
the Secretary, in consultation with the Secretary of
the Interior, determines that oil and gas exploration,
development, and production in the State of Alaska have
ceased,''.
SEC. 390. NEPA REVIEW.
(a) NEPA Review.--Action by the Secretary of the Interior
in managing the public lands, or the Secretary of Agriculture
in managing National Forest System Lands, with respect to any
of the activities described in subsection (b) shall be subject
to a rebuttable presumption that the use of a categorical
exclusion under the National Environmental Policy Act of 1969
(NEPA) would apply if the activity is conducted pursuant to the
Mineral Leasing Act for the purpose of exploration or
development of oil or gas.
(b) Activities Described.--The activities referred to in
subsection (a) are the following:
(1) Individual surface disturbances of less than
five (5) acres so long as the total surface disturbance
on the lease is not greater than 150 acres and site-
specific analysis in a document prepared pursuant to
NEPA has been previously completed.
(2) Drilling an oil or gas well at a location or
well pad site at which drilling has occurred previously
within five (5) years prior to the date of spudding the
well.
(3) Drilling an oil or gas well within a developed
field for which an approved land use plan or any
environmental document prepared pursuant to NEPA
analyzed such drilling as a reasonably foreseeable
activity, so long as such plan or document was approved
within five (5) years prior to the date of spudding the
well.
(4) Placement of a pipeline in an approved right-
of-way corridor, so long as the corridor was approved
within five (5) years prior to the date of placement of
the pipeline.
(5) Maintenance of a minor activity, other than any
construction or major renovation or a building or
facility.
Subtitle H--Refinery Revitalization
SEC. 391. FINDINGS AND DEFINITIONS.
(a) Findings.--Congress finds that--
(1) it serves the national interest to increase
petroleum refining capacity for gasoline, heating oil,
diesel fuel, jet fuel, kerosene, and petrochemical
feedstocks wherever located within the United States,
to bring more supply to the markets for the use of the
American people;
(2) United States demand for refined petroleum
products currently exceeds the country's petroleum
refining capacity to produce such products;
(3) this excess demand has been met with increased
imports;
(4) due to lack of capacity, refined petroleum
product imports are expected to grow from 7.9 percent
to 10.7 percent of total refined product by 2025;
(5) refiners are still subject to significant
environmental and other regulations and face several
new requirements under the Clean Air Act (42 U.S.C.
7401 et seq.) over the next decade; and
(6) better coordination of Federal and State
regulatory reviews may help facilitate siting and
construction of new refineries to meet the demand in
the United States for refined products.
(b) Definitions.--In this subtitle:
(1) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(2) State.--The term ``State'' means--
(A) a State;
(B) the Commonwealth of Puerto Rico; and
(C) any other territory or possession of
the United States.
SEC. 392. FEDERAL-STATE REGULATORY COORDINATION AND ASSISTANCE.
(a) In General.--At the request of the Governor of a State,
the Administrator may enter into a refinery permitting
cooperative agreement with the State, under which each party to
the agreement identifies steps, including timelines, that it
will take to streamline the consideration of Federal and State
environmental permits for a new refinery.
(b) Authority Under Agreement.--The Administrator shall be
authorized to--
(1) accept from a refiner a consolidated
application for all permits required from the
Environmental Protection Agency, to the extent
consistent with other applicable law;
(2) enter into memoranda of agreement with other
Federal agencies to coordinate consideration of
refinery applications and permits among Federal
agencies; and
(3) enter into memoranda of agreement with a State,
under which Federal and State review of refinery permit
applications will be coordinated and concurrently
considered, to the extent practicable.
(c) State Assistance.--The Administrator is authorized to
provide financial assistance to State governments to facilitate
the hiring of additional personnel withexpertise in fields
relevant to consideration of refinery permits.
(d) Other Assistance.--The Administrator is authorized to
provide technical, legal, or other assistance to State
governments to facilitate their review of applications to build
new refineries.
TITLE IV--COAL
Subtitle A--Clean Coal Power Initiative
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
(a) Clean Coal Power Initiative.--There are authorized to
be appropriated to the Secretary to carry out the activities
authorized by this subtitle $200,000,000 for each of fiscal
years 2006 through 2014, to remain available until expended.
(b) Report.--The Secretary shall submit to Congress the
report required by this subsection not later than March 31,
2007. The report shall include, with respect to subsection (a),
a plan containing--
(1) a detailed assessment of whether the aggregate
funding levels provided under subsection (a) are the
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 milestones for
each coal and related technology that will be pursued;
and
(4) a detailed description of how the program will
avoid problems enumerated in Government Accountability
Office reports on the Clean Coal Technology Program,
including problems that have resulted in unspent funds
and projects that failed either financially or
scientifically.
SEC. 402. PROJECT CRITERIA.
(a) In General.--To be eligible to receive assistance under
this subtitle, a project shall advance efficiency,
environmental performance, and cost competitiveness well beyond
the level of technologies that are in commercial service or
have been demonstrated on a scale that the Secretary determines
is sufficient to demonstrate that commercial service is viable
as of the date of enactment of this Act.
(b) Technical Criteria for Clean Coal Power Initiative.--
(1) Gasification projects.--
(A) In general.--In allocating the funds
made available under section 401(a), the
Secretary shall ensure that at least 70 percent
of the funds are used only to fund projects on
coal-based gasification technologies,
including--
(i) gasification combined cycle;
(ii) gasification fuel cells and
turbine combined cycle;
(iii) gasification coproduction;
(iv) hybrid gasification and
combustion; and
(v) other advanced coal based
technologies capable of producing a
concentrated stream of carbon dioxide.
(B) Technical milestones.--
(i) Periodic determination.--
(I) In general.--The
Secretary shall periodically
set technicalmilestones
specifying the emission and thermal efficiency levels that coal
gasification projects under this subtitle shall be designed, and
reasonably expected, to achieve.
(II) Prescriptive
milestones.--The technical
milestones shall become more
prescriptive during the period
of the clean coal power
initiative.
(ii) 2020 goals.--The Secretary
shall establish the periodic milestones
so as to achieve by the year 2020 coal
gasification projects able--
(I) to remove at least 99
percent of sulfur dioxide;
(II) to emit not more than
.05 lbs of NOx per
million Btu;
(III) to achieve at least
95 percent reductions in
mercury emissions; and
(IV) to achieve a thermal
efficiency of at least--
(aa) 50 percent for
coal of more than 9,000
Btu;
(bb) 48 percent for
coal of 7,000 to 9,000
Btu; and
(cc) 46 percent for
coal of less than 7,000
Btu.
(2) Other projects.--
(A) Allocation of funds.--The Secretary
shall ensure that up to 30 percent of the funds
made available under section 401(a) are used to
fund projects other than those described in
paragraph (1).
(B) Technical milestones.--
(i) Periodic determination.--
(I) In general.--The
Secretary shall periodically
establish technical milestones
specifying the emission and
thermal efficiency levels that
projects funded under this
paragraph shall be designed,
and reasonably expected, to
achieve.
(II) Prescriptive
milestones.--The technical
milestones shall become more
prescriptive during the period
of the clean coal power
initiative.
(ii) 2020 goals.--The Secretary
shall set the periodic milestones so as
to achieve by the year 2020 projects
able--
(I) to remove at least 97
percent of sulfur dioxide;
(II) to emit no more than
.08 lbs of NOx per
million Btu;
(III) to achieve at least
90 percent reductions in
mercury emissions; and
(IV) to achieve a thermal
efficiency of at least--
(aa) 43 percent for
coal of more than 9,000
Btu;
(bb) 41 percent for
coal of 7,000 to 9,000
Btu; and
(cc) 39 percent for
coal of less than 7,000
Btu.
(3) Consultation.--Before setting the technical
milestones under paragraphs (1)(B) and (2)(B), the
Secretary shall consult with--
(A) the Administrator of the Environmental
Protection Agency; and
(B) interested entities, including--
(i) coal producers;
(ii) industries using coal;
(iii) organizations that promote
coal or advanced coal technologies;
(iv) environmental organizations;
(v) organizations representing
workers; and
(vi) organizations representing
consumers.
(4) Existing units.--In the case of projects at
units in existence on the date of enactment of this
Act, in lieu of the thermal efficiency requirements
described in paragraphs (1)(B)(ii)(IV) and
(2)(B)(ii)(IV), the milestones shall be designed to
achieve an overall thermal design efficiency
improvement, compared to the efficiency of the unit as
operated, of not less than--
(A) 7 percent for coal of more than 9,000
Btu;
(B) 6 percent for coal of 7,000 to 9,000
Btu; or
(C) 4 percent for coal of less than 7,000
Btu.
(5) Administration.--
(A) Elevation of site.--In evaluating
project proposals to achieve thermal efficiency
levels established under paragraphs (1)(B)(i)
and (2)(B)(i) and in determining progress
towards thermal efficiency milestones under
paragraphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and
(4), the Secretary shall take into account and
make adjustments for the elevation of the site
at which a project is proposed to be
constructed.
(B) Applicability of milestones.--In
applying the thermal efficiency milestones
under paragraphs (1)(B)(ii)(IV),
(2)(B)(ii)(IV), and (4) to projects that
separate and capture at least 50 percent of the
potential emissions of carbon dioxide by a
facility, the energy used for separation and
capture of carbon dioxide shall not be counted
in calculating the thermal efficiency.
(C) Permitted uses.--In carrying out this
section, the Secretary may give priority to
projects that include, as part of the project--
(i) the separation or capture of
carbon dioxide; or
(ii) the reduction of the demand
for natural gas if deployed.
(c) Financial Criteria.--The Secretary shall not provide
financial assistance under this subtitle for a project unless
the recipient documents to the satisfaction of the Secretary
that--
(1) the recipient is financially responsible;
(2) the recipient will provide sufficient
information to the Secretary to enable the Secretary to
ensure that the 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.
(d) Financial Assistance.--The Secretary shall provide
financial assistance to projects that, as determined by the
Secretary--
(1) meet the requirements of subsections (a), (b),
and (c); and
(2) are likely--
(A) to achieve overall cost reductions in
the use of coal to generate useful forms of
energy or chemical feedstocks;
(B) to improve the competitiveness of coal
among various forms of energy in order to
maintain a diversity of fuel choices in the
United States to meet electricity generation
requirements; and
(C) to demonstrate methods and equipment
that are applicable to 25 percent of the
electricity generating facilities, using
various types of coal, that use coal as the
primary feedstock as of the date of enactment
of this Act.
(e) Cost-Sharing.--In carrying out this subtitle, the
Secretary shall require cost sharing in accordance with section
988.
(f) Scheduled Completion of Selected Projects.--
(1) In general.--In selecting a project for
financial assistance under this section, the Secretary
shall establish a reasonable period of time during
which the owner or operator of the project shall
complete the construction or demonstration phase of the
project, as the Secretary determines to be appropriate.
(2) Condition of financial assistance.--The
Secretary shall require as a condition of receipt of
any financial assistance under this subtitle that the
recipient of the assistance enter into an agreement
with the Secretary not to request an extension of the
time period established for the project by the
Secretary under paragraph (1).
(3) Extension of time period.--
(A) In general.--Subject to subparagraph
(B), the Secretary may extend the time period
established under paragraph (1) if the
Secretary determines, in the sole discretion of
the Secretary, that the owner or operator of
the project cannot complete the construction or
demonstration phase of the project within the
time period due to circumstances beyond the
control of the owner or operator.
(B) Limitation.--The Secretary shall not
extend a time period under subparagraph (A) by
more than 4 years.
(g) Fee Title.--The Secretary may vest fee title or other
property interests acquired under cost-share clean coal power
initiative agreements under this subtitle in any entity,
including the United States.
(h) Data Protection.--For a period not exceeding 5 years
after completion of the operations phase of a cooperative
agreement, the Secretary may provide appropriate protections
(including exemptions from subchapter II of chapter 5 of title
5, United States Code) against the dissemination of information
that--
(1) results from demonstration activities carried
out under the clean coal power initiative program; and
(2) would be a trade secret or commercial or
financial information that is privileged or
confidential if the information had been obtained from
and first produced by a non-Federal party participating
in a clean coal power initiative project.
(i) Applicability.--No technology, or level of emission
reduction, solely by reason of the use of the technology, or
the achievement of the emission reduction, by 1 or more
facilities receiving assistance under this Act, shall be
considered to be--
(1) adequately demonstrated for purposes of section
111 of the Clean Air Act (42 U.S.C. 7411);
(2) achievable for purposes of section 169 of that
Act (42 U.S.C. 7479); or
(3) achievable in practice for purposes of section
171 of that Act (42 U.S.C. 7501).
SEC. 403. REPORT.
Not later than 1 year after the date of enactment of this
Act, and once every 2 years thereafter through 2014, the
Secretary, in consultation with other appropriate Federal
agencies, shall submit to Congress a report describing--
(1) the technical milestones set forth in section
402 and how those milestones ensure progress toward
meeting the requirements of subsections (b)(1)(B) and
(b)(2) of section 402; and
(2) the status of projects funded under this
subtitle.
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.
(a) In General.--As part of the clean coal power
initiative, the Secretary shall award competitive, merit-based
grants to institutions of higher education for the
establishment of centers of excellence for energy systems of
the future.
(b) Basis for Grants.--The Secretary shall award grants
under this section to institutions of higher education that
show the greatest potential for advancing new clean coal
technologies.
Subtitle B--Clean Power Projects
SEC. 411. INTEGRATED COAL/RENEWABLE ENERGY SYSTEM.
(a) In General.--Subject to the availability of
appropriations, the Secretary may provide loan guarantees for a
project to produce energy from coal of less than 7,000 Btu/lb
using appropriate advanced integrated gasification combined
cycle technology, including repowering of existing facilities,
that--
(1) is combined with wind and other renewable
sources;
(2) minimizes and offers the potential to sequester
carbon dioxide emissions; and
(3) provides a ready source of hydrogen for near-
site fuel cell demonstrations.
(b) Requirements.--The facility--
(1) may be built in stages;
(2) shall have a combined output of at least 200
megawatts at successively more competitive rates; and
(3) shall be located in the Upper Great Plains.
(c) Technical Criteria.--Technical criteria described in
section 402(b) shall apply to the facility.
(d) Investment Tax Credits.--
(1) In general.--The loan guarantees provided under
this section do not preclude the facility from
receiving an allocation for investment tax credits
under section 48A of the Internal Revenue Code of 1986.
(2) Other funding.--Use of the investment tax
credit described in paragraph (1) does not prohibit the
use of other clean coal program funding.
SEC. 412. LOAN TO PLACE ALASKA CLEAN COAL TECHNOLOGY FACILITY IN
SERVICE.
(a) Definitions.--In this section:
(1) Borrower.--The term ``borrower'' means the
owner of the clean coal technology plant.
(2) Clean coal technology plant.--The term ``clean
coal technology plant'' means the plant located near
Healy, Alaska, constructed under Department cooperative
agreement number DE-FC-22-91PC90544.
(3) Cost of a direct loan.--The term ``cost of a
direct loan'' has the meaning given the term in section
502(5)(B) of the Federal Credit Reform Act of 1990 (2
U.S.C. 661a(5)(B)).
(b) Authorization.--Subject to subsection (c), the
Secretary shall use amounts made available under subsection (e)
to provide the cost of a direct loan to the borrower for
purposes of placing the clean coal technology plant into
reliable operation for the generation of electricity.
(c) Requirements.--
(1) Maximum loan amount.--The amount of the direct
loan provided under subsection (b) shall not exceed
$80,000,000.
(2) Determinations by secretary.--Before providing
the direct loan to the borrower under subsection (b),
the Secretary shall determine that--
(A) the plan of the borrower for placing
the clean coal technology plant in reliable
operation has a reasonable prospect of success;
(B) the amount of the loan (when combined
with amounts available to the borrower from
other sources) will be sufficient to carry out
the project; and
(C) there is a reasonable prospect that the
borrower will repay the principal and interest
on the loan.
(3) Interest; term.--The direct loan provided under
subsection (b) shall bear interest at a rate and for a
term that the Secretary determines appropriate, after
consultation with the Secretary of the Treasury, taking
into account the needs and capacities of the borrower
and the prevailing rate of interest for similar loans
made by public and private lenders.
(4) Additional terms and conditions.--The Secretary
may require any other terms and conditions that the
Secretary determines to be appropriate.
(d) Use of Payments.--The Secretary shall retain any
payments of principal and interest on the direct loan provided
under subsection (b) to support energy research and development
activities, to remain available until expended, subject to any
other conditions in an applicable appropriations Act.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to provide the
cost of a direct loan under subsection (b).
SEC. 413. WESTERN INTEGRATED COAL GASIFICATION DEMONSTRATION PROJECT.
(a) In General.--Subject to the availability of
appropriations, the Secretary shall carry out a project to
demonstrate production of energy from coal mined in the western
United States using integrated gasification combined cycle
technology (referred to in this section as the ``demonstration
project'').
(b) Components.--The demonstration project--
(1) may include repowering of existing facilities;
(2) shall be designed to demonstrate the ability to
use coal with an energy content of not more than 9,000
Btu/lb.; and
(3) shall be capable of removing and sequestering
carbon dioxide emissions.
(c) All Types of Western Coals.--Notwithstanding the
foregoing, and to the extent economically feasible, the
demonstration project shall also be designed to demonstrate the
ability to use a variety of types of coal (including
subbituminous and bituminous coal with an energy content of up
to 13,000 Btu/lb.) mined in the western United States.
(d) Location.--The demonstration project shall be located
in a western State at an altitude of greater than 4,000 feet
above sea level.
(e) Cost Sharing.--The Federal share of the cost of the
demonstration project shall be determined in accordance with
section 988.
(f) Loan Guarantees.--Notwithstanding title XIV, the
demonstration project shall not be eligible for Federal loan
guarantees.
SEC. 414. COAL GASIFICATION.
The Secretary is authorized to provide loan guarantees for
a project to produce energy from a plant using integrated
gasification combined cycle technology of at least 400
megawatts in capacity that produces power at competitive rates
in deregulated energy generation markets and that does not
receive any subsidy (direct or indirect) from ratepayers.
SEC. 415. PETROLEUM COKE GASIFICATION.
The Secretary is authorized to provide loan guarantees for
at least 5 petroleum coke gasification projects.
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.
The Secretary shall use $5,000,000 from amounts
appropriated to initiate, through the Chicago Operations
Office, a project to demonstrate the viability of high-energy
electron scrubbing technology on commercial-scale electrical
generation using high-sulfur coal.
SEC. 417. DEPARTMENT OF ENERGY TRANSPORTATION FUELS FROM ILLINOIS BASIN
COAL.
(a) In General.--The Secretary shall carry out a program to
evaluate the commercial and technical viability of advanced
technologies for the production of Fischer-Tropsch
transportation fuels, and other transportation fuels,
manufactured from Illinois basin coal, including the capital
modification of existing facilities and the construction of
testing facilities under subsection (b).
(b) Facilities.--For the purpose of evaluating the
commercial and technical viability of different processes for
producing Fischer-Tropsch transportation fuels, and other
transportation fuels, from Illinois basin coal, the Secretary
shall support the use and capital modification of existing
facilities and the construction of new facilities at--
(1) Southern Illinois University Coal Research
Center;
(2) University of Kentucky Center for Applied
Energy Research; and
(3) Energy Center at Purdue University.
(c) Gasification Products Test Center.--In conjunction with
the activities described in subsections (a) and (b), the
Secretary shall construct a test center to evaluate and confirm
liquid and gas products from syngas catalysis in order that the
system has an output of at least 500 gallons of Fischer-Tropsch
transportation fuel per day in a 24-hour operation.
(d) Milestones.--
(1) Selection of processes.--Not later than 180
days after the date of enactment of this Act, the
Secretary shall select processes for evaluating the
commercial and technical viability of different
processes of producing Fischer-Tropsch transportation
fuels, and other transportation fuels, from Illinois
basin coal.
(2) Agreements.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall
offer to enter into agreements--
(A) to carry out the activities described
in this section, at the facilities described in
subsection (b); and
(B) for the capital modifications or
construction of the facilities at the locations
described in subsection (b).
(3) Evaluations.--Not later than 3 years after the
date of enactment of the Act, the Secretary shall
begin, at the facilities described in subsection (b),
evaluation of the technical and commercial viability of
different processes of producing Fischer-Tropsch
transportation fuels, and other transportation fuels,
from Illinois basin coal.
(4) Construction of facilities.--
(A) In general.--The Secretary shall
construct the facilities described in
subsection (b) at the lowest cost practicable.
(B) Grants or agreements.--The Secretary
may make grants or enter into agreements or
contracts with the institutions of higher
education described in subsection (b).
(e) Cost Sharing.--The cost of making grants under this
section shall be shared in accordance with section 988.
(f) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $85,000,000 for
the period of fiscal years 2006 through 2010.
Subtitle C--Coal and Related Programs
SEC. 421. AMENDMENT OF THE ENERGY POLICY ACT OF 1992.
(a) Amendment.--The Energy Policy Act of 1992 (42 U.S.C.
13201 et seq.) is amended by adding at the end the following:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``SEC. 3101. PURPOSES.
``The purposes of this title are to--
``(1) promote national energy policy and energy
security, diversity, and economic competitiveness
benefits that result from the increased use of coal;
``(2) mitigate financial risks, reduce the cost of
clean coal generation, and increase the marketplace
acceptance of clean coal generation and pollution
control equipment and processes; and
``(3) facilitate the environmental performance of
clean coal generation.
``SEC. 3102. AUTHORIZATION OF PROGRAM.
``(a) In General.--The Secretary shall carry out a program
of financial assistance to--
``(1) facilitate the production and generation of
coal-based power, through the deployment of clean coal
electric generating equipment and processes that,
compared to equipment or processes that are in
operation on a full scale--
``(A) improve--
``(i) energy efficiency; or
``(ii) environmental performance
consistent with relevant Federal and
State clean air requirements, including
those promulgated under the Clean Air
Act (42 U.S.C. 7401 et seq.); and
``(B) are not yet cost competitive; and
``(2) facilitate the utilization of existing coal-
based electricity generation plants through projects
that--
``(A) deploy advanced air pollution control
equipment and processes; and
``(B) are designed to voluntarily enhance
environmental performance above current
applicable obligations under the Clean Air Act
and State implementation efforts pursuant to
such Act.
``(b) Financial Criteria.--As determined by the Secretary
for a particular project, financial assistance under this title
shall be in the form of--
``(1) cost-sharing of an appropriate percentage of
the total project cost, not to exceed 50 percent as
calculated under section 988 of the Energy Policy Act
of 2005; or
``(2) financial assistance, including grants,
cooperative agreements, or loans as authorized under
this Act or other statutory authority of the Secretary.
``SEC. 3103. GENERATION PROJECTS.
``(a) Eligible Projects.--Projects supported under section
3102(a)(1) may include--
``(1) equipment or processes previously supported
by a Department of Energy program;
``(2) advanced combustion equipment and processes
that the Secretary determines will be cost-effective
and could substantially contribute to meeting
environmental or energy needs, including gasification,
gasification fuel cells, gasification coproduction,
oxidation combustion techniques, ultra-supercritical
boilers, and chemical looping; and
``(3) hybrid gasification/combustion systems,
including systems integrating fuel cells with
gasification or combustion units.
``(b) Criteria.--The Secretary shall establish criteria for
the selection of generation projects under section 3102(a)(1).
The Secretary may modify the criteria as appropriate to reflect
improvements in equipment, except that the criteria shall not
be modified to be less stringent. The selection criteria shall
include--
``(1) prioritization of projects whose installation
is likely to result in significant air quality
improvements in nonattainment air quality areas;
``(2) prioritization of projects whose installation
is likely to result in lower emission rates of
pollution;
``(3) prioritization of projects that result in the
repowering or replacement of older, less efficient
units;
``(4) documented broad interest in the procurement
of the equipment and utilization of the processes used
in the projects by owners or operators of facilities
for electricity generation;
``(5) equipment and processes beginning in 2006
through 2011 that are projected to achieve a thermal
efficiency of--
``(A) 40 percent for coal of more than
9,000 Btu per pound based on higher heating
values;
``(B) 38 percent for coal of 7,000 to 9,000
Btu per pound passed on higher heating values;
and
``(C) 36 percent for coal of less than
7,000 Btu per pound based on higher heating
values;
except that energy used for coproduction or
cogeneration shall not be counted in calculating the
thermal efficiency under this paragraph; and
``(6) equipment and processes beginning in 2012 and
2013 that are projected to achieve a thermal efficiency
of--
``(A) 45 percent for coal of more than
9,000 Btu per pound based on higher heating
values;
``(B) 44 percent for coal of 7,000 to 9,000
Btu per pound passed on higher heating values;
and
``(C) 40 percent for coal of less than
7,000 Btu per pound based on higher heating
values;
except that energy used for coproduction or
cogeneration shall not be counted in calculating the
thermal efficiency under this paragraph
``(c) Program Balance and Priority.--In carrying out the
program under section 3102(a)(1), the Secretary shall ensure,
to the extent practicable, that--
``(1) between 25 percent and 75 percent of the
projects supported are for the sole purpose of
electrical generation; and
``(2) priority is given to projects that use
electrical generation equipment and processes that have
been developed and demonstrated and applied in actual
production of electricity, but are not yet cost-
competitive, and that achieve greater efficiency and
environmental performance.
``(d) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
section 3102(a)(1)--
``(1) $250,000,000 for fiscal year 2007;
``(2) $350,000,000 for fiscal year 2008;
``(3) $400,000,000 for each of fiscal years 2009
through 2012; and
``(4) $300,000,000 for fiscal year 2013.
``(e) Applicability.--No technology, or level of emission
reduction shall be treated as adequately demonstrated for
purpose of section 111 of the Clean Air Act (42 U.S.C. 7411),
achievable for purposes of section 169 of that Act (42 U.S.C.
7479), or achievable in practice for purposes of section 171 of
that Act (42 U.S.C. 7501) solely by reason of the use of such
technology, or the achievement of such emission reduction, by 1
or more facilities receiving assistance under section
3102(a)(1).
``SEC. 3104. AIR QUALITY ENHANCEMENT PROGRAM.
``(a) Eligible Projects.--Projects supported under section
3102(a)(2) shall--
``(1) utilize technologies that meet relevant
Federal and State clean air requirements applicable to
the unit or facility, including being adequately
demonstrated for purposes of section 111 of the Clean
Air Act (42 U.S.C. 7411), achievable for purposes of
section 169 of that Act (42 U.S.C. 7479), or achievable
in practice for purposes of section 171 of that Act (42
U.S.C. 7501); or
``(2) utilize equipment or processes that exceed
relevant Federal or State clean air requirements
applicable to the unit or facilities included in the
projects by achieving greater efficiency or
environmental performance.
``(b) Priority in Project Selection.--In making an award
under section 3102(a)(2), the Secretary shall give priority
to--
``(1) projects whose installation is likely to
result in significant air quality improvements in
nonattainment air quality areas or substantially reduce
the emission level of criteria pollutants and mercury
air emissions;
``(2) projects for pollution control that result in
the mitigation or collection of more than 1 pollutant;
and
``(3) projects designed to allow the use of the
waste byproducts or other byproducts of the equipment.
``(c) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary to carry out
section 3102(a)(2)--
``(1) $300,000,000 for fiscal year 2007;
``(2) $100,000,000 for fiscal year 2008;
``(3) $40,000,000 for fiscal year 2009;
``(4) $30,000,000 for fiscal year 2010; and
``(5) $30,000,000 for fiscal year 2011.
``(d) Applicability.--No technology, or level of emission
reduction under subsection (a)(2) shall be treated as
adequately demonstrated for purpose of Section 111 of the Clean
Air Act (42 U.S.C. 7411), achievable for purposes of section
169 of that Act (42 U.S.C. 7479), or achievable in practice for
purposes of section 171 of that Act (42 U.S.C. 7501) solely by
reason of the use of suchtechnology, or the achievement of such
emission reduction, by 1 or more facilities receiving assistance under
section 3102(a)(2).''.
(b) Table of Contents Amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by adding at the end the following:
``TITLE XXXI--CLEAN AIR COAL PROGRAM
``Sec. 3101. Purposes.
``Sec. 3102. Authorization of program.
``Sec. 3103. Generation projects.
``Sec. 3104. Air quality enhancement program.''.
Subtitle D--Federal Coal Leases
SEC. 431. SHORT TITLE.
This subtitle may be cited as the ``Coal Leasing Amendments
Act of 2005''.
SEC. 432. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.
Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is
amended--
(1) in the first sentence, by striking ``Any
person'' and inserting the following: ``(a)(1) Except
as provided in paragraph (3), on a finding by the
Secretary under paragraph (2), any person'';
(2) in the second sentence, by striking ``The
Secretary'' and inserting the following:
``(b) The Secretary'';
(3) in the third sentence, by striking ``The
minimum'' and inserting the following:
``(c) The minimum'';
(4) in subsection (a) (as designated by paragraph
(1))--
(A) by striking ``upon'' and all that
follows and inserting the following: ``secure
modifications of the original coal lease by
including additional coal lands or coal
deposits contiguous or cornering to those
embraced in the lease.''; and
(B) by adding at the end the following:
``(2) A finding referred to in paragraph (1) is a finding
by the Secretary that the modifications--
``(A) would be in the interest of the United
States;
``(B) would not displace a competitive interest in
the lands; and
``(C) would not include lands or deposits that can
be developed as part of another potential or existing
operation.
``(3) In no case shall the total area added by
modifications to an existing coal lease under paragraph (1)--
``(A) exceed 960 acres; or
``(B) add acreage larger than that in the original
lease.''.
SEC. 433. APPROVAL OF LOGICAL MINING UNITS.
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 40
years if the Secretary determines that the longer period--
``(i) will ensure the maximum economic recovery of
a coal deposit; or
``(ii) the longer period is in the interest of the
orderly, efficient, or economic development of a coal
resource.''.
SEC. 434. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.
Section 7(b) of the Mineral Leasing Act (30 U.S.C. 207(b))
is amended--
(1) in the first sentence, by striking ``Each
lease'' and inserting the following: ``(1) Each
lease'';
(2) in the second sentence, by striking ``The
Secretary'' and inserting the following:
``(2) The Secretary'';
(3) in the third sentence, by striking ``Such
advance royalties'' and inserting the following:
``(3) Advance royalties described in paragraph (2)'';
(4) in the seventh sentence, by striking ``The
Secretary'' and inserting the following:
``(6) The Secretary'';
(5) in the last sentence, by striking ``Nothing''
and inserting the following:
``(7) Nothing'';
(6) by striking the fourth, fifth, and sixth
sentences; and
(7) by inserting after paragraph (3) (as designated
by paragraph (3)) the following:
``(4) Advance royalties described in paragraph (2) shall be
computed--
``(A) based on--
``(i) the average price in the spot market
for sales of comparable coal from the same
region during the last month of each applicable
continued operation year; or
``(ii) in the absence of a spot market for
comparable coal from the same region, by using
a comparable method established by the
Secretary of the Interior to capture the
commercial value of coal; and
``(B) based on commercial quantities, as defined by
regulation by the Secretary of the Interior.
``(5) 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 20
years.
``(6) 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 a lease described in paragraph (5)
to the extent that the advance royalties have not been used to
reduce production royalties for a prior year.''.
SEC. 435. 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. 436. AMENDMENT RELATING TO FINANCIAL ASSURANCES WITH RESPECT TO
BONUS BIDS.
Section 2(a) of the Mineral Leasing Act (30 U.S.C. 201(a))
is amended by adding at the end the following:
``(4)(A) The Secretary shall not require a surety bond or
any other financial assurance to guarantee payment of deferred
bonus bid installments with respect to any coallease issued on
a cash bonus bid to a lessee or successor in interest having a history
of a timely payment of noncontested coal royalties and advanced coal
royalties in lieu of production (where applicable) and bonus bid
installment payments.
``(B) The Secretary may waive any requirement that a lessee
provide a surety bond or other financial assurance to guarantee
payment of deferred bonus bid installment with respect to any
coal lease issued before the date of the enactment of the
Energy Policy Act of 2005 only if the Secretary determines that
the lessee has a history of making timely payments referred to
in subparagraph (A).
``(5) Notwithstanding any other provision of law, if the
lessee under a coal lease fails to pay any installment of a
deferred cash bonus bid within 10 days after the Secretary
provides written notice that payment of the installment is past
due--
``(A) the lease shall automatically terminate; and
``(B) any bonus payments already made to the United
States with respect to the lease shall not be returned
to the lessee or credited in any future lease sale.''.
SEC. 437. INVENTORY REQUIREMENT.
(a) Review of Assessments.--
(1) In general.--The Secretary of the Interior, in
consultation with the Secretary of Agriculture and the
Secretary, shall review coal assessments and other
available data to identify--
(A) Federal lands with coal resources that
are available for development;
(B) the extent and nature of any
restrictions on the development of coal
resources on Federal lands identified under
paragraph (1); and
(C) with respect to areas of such lands for
which sufficient data exists, resources of
compliant coal and supercompliant coal.
(2) Definitions.--For purposes of this subsection--
(A) the term ``compliant coal'' means coal
that contains not less than 1.0 and not more
than 1.2 pounds of sulfur dioxide per million
Btu; and
(B) the term ``supercompliant coal'' means
coal that contains less than 1.0 pounds of
sulfur dioxide per million Btu.
(b) Completion and Updating of the Inventory.--The
Secretary--
(1) shall complete the inventory under subsection
(a) by not later than 2 years after the date of
enactment of this Act; and
(2) shall update the inventory as the availability
of data and developments in technology warrant.
(c) Report.--The Secretary shall submit to the Committee on
Resources of the House of Representatives and to the Committee
on Energy and Natural Resources of the Senate and make publicly
available--
(1) a report containing the inventory under this
section, by not later than 2 years after the effective
date of this section; and
(2) each update of such inventory.
SEC. 438. APPLICATION OF AMENDMENTS.
The amendments made by this subtitle apply with respect to
any coal lease issued before, on, or after the date of the
enactment of this Act.
TITLE V--INDIAN ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ``Indian Tribal Energy
Development and Self-Determination Act of 2005''.
SEC. 502. 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, in accordance with
Federal policies promoting Indian self-determination and the
purposes of this Act, shall 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) bring electrical power and service to Indian
land and the homes of tribal members located on Indian
lands or acquired, constructed, or improved (in whole
or in part) with Federal funds.''.
(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''.
(2) Section 5315 of title 5, United States Code, is
amended by inserting after the item related to the
Inspector General, Department of Energy the following
new item:
``Director, Office of Indian Energy Policy and Programs,
Department of Energy.''.
SEC. 503. INDIAN ENERGY.
(a) In General.--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.
``In this title:
``(1) The term `Director' means the Director of the
Office of Indian Energy Policy and Programs, Department
of Energy.
``(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 or
an individual Indian;
``(ii) by an Indian tribe or an
individual Indian, subject to
restriction against alienation under
laws of the United States; or
``(iii) by a dependent Indian
community; and
``(C) land that is owned by an Indian tribe
and was conveyed by the United States to a
Native Corporation pursuant to the Alaska
Native Claims Settlement Act (43 U.S.C. 1601 et
seq.), or that was conveyed by the United
States to a Native Corporation in exchange for
such land.
``(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; and
``(C) 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 State or States.
``(4)(A) 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).
``(B) For the purpose of paragraph (12) and
sections 2603(b)(1)(C) and 2604, the term `Indian
tribe' does not include any Native Corporation.
``(5) The term `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 or distribution
facility) on or near Indian land to process, refine,
generate electricity from, or otherwise develop energy
resources on, Indian land.
``(6) 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).
``(7) 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.
``(8) The term `Program' means the Indian energy
resource development program established under section
2602(a).
``(9) The term `Secretary' means the Secretary of
the Interior.
``(10) The term `sequestration' means the long-term
separation, isolation, or removal of greenhouse gases
from the atmosphere, including through a biological or
geologic method such as reforestation or an underground
reservoir.
``(11) The term `tribal energy resource development
organization' means an organization of 2 or more
entities, at least 1 of which is an Indian tribe, that
has the written consent of the governing bodies of all
Indian tribes participating in the organization to
apply for a grant, loan, or other assistance under
section 2602.
``(12) The term `tribal land' means any land or
interests in land owned by any Indian tribe, title to
which is held in trust by the United States, or is
subject to a restriction against alienation under laws
of the United States.
``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.
``(a) Department of the Interior Program.--
``(1) 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 consenting Indian tribes and tribal energy
resource development organizations in achieving the
purposes of this title.
``(2) In carrying out the Program, the Secretary
shall--
``(A) provide development grants to Indian
tribes and tribal energy resource development
organizations for use in developing or
obtaining the managerial and technical capacity
needed to develop energy resources on Indian
land, and to properly account for resulting
energy production and revenues;
``(B) provide grants to Indian tribes and
tribal energy resource development
organizations for use in carrying out projects
to promote the integration of energy resources,
and to process, use, or develop those energy
resources, on Indian land;
``(C) provide low-interest loans to Indian
tribes and tribal energy resource development
organizations for use in the promotion of
energy resource development on Indian land and
integration of energy resources; and
``(D) provide grants and technical
assistance to an appropriate tribal
environmental organization, as determined by
the Secretary, that represents multiple Indian
tribes to establish a national resource center
to develop tribal capacity to establish and
carry out tribal environmental programs in
support of energy-related programs and
activities under this title, including--
``(i) training programs for tribal
environmental officials, program
managers, and other governmental
representatives;
``(ii) the development of model
environmental policies and tribal laws,
including tribal environmental review
codes, and the creation and maintenance
of a clearinghouse of best
environmental management practices; and
``(iii) recommended standards for
reviewing the implementation of tribal
environmental laws and policies within
tribal judicial or other tribal appeals
systems.
``(3) There are authorized to be appropriated to
carry out this subsection such sums as are necessary
for each of fiscal years 2006 through 2016.
``(b) Department of Energy Indian Energy Education Planning
and Management Assistance Program.--
``(1) The Director shall establish programs to
assist consenting Indian tribes in meeting energy
education, research and development, planning, and
management needs.
``(2) In carrying out this subsection, the Director
may provide grants, on a competitive basis, to an
Indian tribe or tribal energy resource development
organization for use in carrying out--
``(A) energy, energy efficiency, and energy
conservation programs;
``(B) studies and other activities
supporting tribal acquisitions of energy
supplies, services, and facilities, including
the creation of tribal utilities to assist in
securing electricity to promote electrification
of homes and businesses on Indian land;
``(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 shall develop a program to
support and implement research projects that provide
Indian tribes with opportunities to participate in
carbon sequestration practices on Indian land,
including--
``(i) geologic sequestration;
``(ii) forest sequestration;
``(iii) agricultural sequestration; and
``(iv) any other sequestration
opportunities the Director considers to be
appropriate.
``(B) The activities carried out under subparagraph
(A) shall be--
``(i) coordinated with other carbon
sequestration research and development programs
conducted by the Secretary of Energy;
``(ii) conducted to determine methods
consistent with existing standardized
measurementprotocols to account and report the
quantity of carbon dioxide or other greenhouse gases sequestered in
projects that may be implemented on Indian land; and
``(iii) reviewed periodically to collect
and distribute to Indian tribes information on
carbon sequestration practices that will
increase the sequestration of carbon without
threatening the social and economic well-being
of Indian tribes.
``(4)(A) The Director, in consultation with Indian
tribes, may develop a formula for providing grants
under this subsection.
``(B) In providing a grant under this subsection,
the Director shall give priority to any application
received from an Indian tribe with inadequate electric
service (as determined by the Director).
``(C) In providing a grant under this subsection
for an activity to provide, or expand the provision of,
electricity on Indian land, the Director shall
encourage cooperative arrangements between Indian
tribes and utilities that provide service to Indian
tribes, as the Director determines to be appropriate.
``(5) The Secretary of Energy may issue such
regulations as the Secretary determines to be necessary
to carry out this subsection.
``(6) There is authorized to be appropriated to
carry out this subsection $20,000,000 for each of
fiscal years 2006 through 2016.
``(c) Department of Energy Loan Guarantee Program.--
``(1) Subject to paragraphs (2) and (4), the
Secretary of Energy may provide loan guarantees (as
defined in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)) for an amount equal to not
more than 90 percent of the unpaid principal and
interest due on any loan made to an Indian tribe for
energy development.
``(2) In providing a loan guarantee under this
subsection for an activity to provide, or expand the
provision of, electricity on Indian land, the Secretary
of Energy shall encourage cooperative arrangements
between Indian tribes and utilities that provide
service to Indian tribes, as the Secretary determines
to be appropriate.
``(3) A loan guarantee under this subsection shall
be made by--
``(A) a financial institution subject to
examination by the Secretary of Energy; or
``(B) an Indian tribe, from funds of the
Indian tribe.
``(4) The aggregate outstanding amount guaranteed
by the Secretary of Energy at any time under this
subsection shall not exceed $2,000,000,000.
``(5) The Secretary of Energy may issue such
regulations as the Secretary of Energy determines are
necessary to carry out this subsection.
``(6) There are authorized to be appropriated such
sums as are necessary to carry out this subsection, to
remain available until expended.
``(7) Not later than 1 year after the date of
enactment of this section, the Secretary of Energy
shall submit to Congress a report on the financing
requirements of Indian tribes for energy development on
Indian land.
``(d) 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; or
``(B) obtain less than prevailing market
terms and conditions.
``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.
``(a) Grants.--The Secretary may provide to Indian tribes,
on an annual basis, grants for use in accordance with
subsection (b).
``(b) Use of Funds.--Funds from a grant provided under this
section may be used--
``(1)(A) by an Indian tribe for the development of
a tribal energy resource inventory or tribal energy
resource on Indian land;
``(B) by an Indian tribe for the development of a
feasibility study or other report necessary to the
development of energy resources on Indian land;
``(C) by an Indian tribe (other than an Indian
Tribe in the State of Alaska, except the Metlakatla
Indian Community) for--
``(i) the development and enforcement of
tribal laws (including regulations) relating to
tribal energy resource development; and
``(ii) the development of technical
infrastructure to protect the environment under
applicable law; or
``(D) by a Native Corporation for the development
and implementation of corporate policies and the
development of technical infrastructure to protect the
environment under applicable law; and
``(2) by an Indian tribe for 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.--
``(1) In carrying out the obligations of the United
States under this title, the Secretary shall ensure, to
the maximum extent practicable and to the extent of
available resources, that on the request of an Indian
tribe, the Indian tribe shall have available scientific
and technical information and expertise, for use in the
regulation, development, and management of energy
resources of the Indian tribe on Indian land.
``(2) The Secretary may carry out paragraph (1)--
``(A) directly, through the use of Federal
officials; or
``(B) indirectly, by providing financial
assistance to an Indian tribe to secure
independent assistance.
``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING
ENERGY DEVELOPMENT OR TRANSMISSION.
``(a) Leases and Business Agreements.--In accordance with
this section--
``(1) an Indian tribe may, at the discretion of the
Indian tribe, enter into a lease or business agreement
for the purpose of energy resource development on
tribal land, including a lease or business agreement
for--
``(A) exploration for, extraction of,
processing of, or other development of the
energy mineral resources of the Indian tribe
located on tribal land; or
``(B) construction or operation of--
``(i) an electric generation,
transmission, or distribution facility
located on tribal land; or
``(ii) 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 review by or 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 pursuant to 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 resources, gas
resources, or both, 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 the periodic review
and evaluation of the activities of the Indian
tribe under the agreement, to be conducted
pursuant to subsection (e)(2)(D)(i)).
``(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 review or 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 the periodic review and evaluation of the
activities of the Indian tribe under an agreement
described in subparagraphs (D) and (E) of subsection
(e)(2)).
``(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 relating to the development of tribal energy resources
under this section shall be valid unless the lease, business
agreement, or right-of-way is authorized by atribal energy
resource agreement approved by the Secretary under subsection (e)(2).
``(e) Tribal Energy Resource Agreements.--
``(1) On the date on which regulations are
promulgated under paragraph (8), 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 270 days after the date on
which the Secretary receives a tribal energy resource
agreement from an Indian tribe under paragraph (1), or
not later than 60 days after the Secretary receives a
revised tribal energy resource agreement from an Indian
tribe under paragraph (4)(C) (or a later date, as
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;
``(ii) the tribal energy resource agreement
includes provisions required under subparagraph
(D); and
``(iii) 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 the economic return
to the Indian tribe under leases,
business agreements, and rights-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,
including a requirement that each
lease, business agreement, and right-
of-way state that the lessee, operator,
or right-of-way grantee shall comply
with all such laws;
``(VIII) identify final approval
authority;
``(IX) provide for public
notification of final approvals;
``(X) establish a process for
consultation with any affected States
regarding off-reservation impacts, if
any, identified under subparagraph
(C)(i);
``(XI) describe the remedies for
breach of the lease, business
agreement, or right-of-way;
``(XII) require each lease,
business agreement, and right-of-way to
include a statement that, if any of its
provisions violates an express term or
requirement of the tribal energy
resource agreement pursuant to which
the lease, business agreement, or
right-of-way was executed--
``(aa) the provision shall
be null and void; and
``(bb) if the Secretary
determines the provision to be
material, the Secretary may
suspend or rescind the lease,
business agreement, or right-
of-way or take other
appropriate action that the
Secretary determines to be in
the best interest of the Indian
tribe;
``(XIII) require each lease,
business agreement, and right-of-way to
provide that it will become effective
on the date on which a copy of the
executed lease, business agreement, or
right-of-way is delivered to the
Secretary in accordance with
regulations promulgated under paragraph
(8);
``(XIV) include citations to tribal
laws, regulations, or procedures, if
any, that set out tribal remedies that
must be exhausted before a petition may
be submitted to the Secretary under
paragraph (7)(B);
``(XV) specify the financial
assistance, if any, to be provided by
the Secretary to the Indian tribe to
assist in implementation of the tribal
energy resource agreement, including
environmental review of individual
projects; and
``(XVI) in accordance with the
regulations promulgated by the
Secretary under paragraph (8), require
that the Indian tribe, as soon as
practicable after receipt of a notice
by the Indian tribe, give written
notice to the Secretary of--
``(aa) any breach or other
violation by another party of
any provision in a lease,
business agreement, or right-
of-way entered into under the
tribal energy resource
agreement; and
``(bb) any activity or
occurrence under a lease,
business agreement, or right-
of-way that constitutes a
violation of Federal or tribal
environmental laws.
``(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,
at a minimum--
``(i) the identification and
evaluation of all significant
environmental effects (as compared to a
no-action alternative), including
effects on cultural resources;
``(ii) the identification of
proposed mitigation measures, if any,
and incorporation of appropriate
mitigation measures into the lease,
business agreement, or right-of-way;
``(iii) a process for ensuring
that--
``(I) the public is
informed of, and has an
opportunity to comment on, the
environmental impacts of the
proposed action; and
``(II) responses to
relevant and substantive
comments are provided, before
tribal approval of the lease,
business agreement, or right-
of-way;
``(iv) sufficient administrative
support and technical capability to
carry out the environmental review
process; and
``(v) oversight by the Indian tribe
of energy development activities by any
other party under any lease, business
agreement, or right-of-way entered into
pursuant to the tribal energy resource
agreement, to determine whether the
activities are in compliance with the
tribal energy resource agreement and
applicable Federal environmental laws.
``(D) A tribal energy resource agreement
between the Secretary and an Indian tribe under
this subsection shall include--
``(i) provisions requiring the
Secretary to conduct a periodic review
and evaluation to monitor the
performance of the activities of the
Indian tribe associated with the
development of energy resources under
the tribal energy resource agreement;
and
``(ii) if a periodic review and
evaluation, or an investigation, by the
Secretary of any breach or violation
described in a notice provided by the
Indian tribe to the Secretary in
accordance with subparagraph
(B)(iii)(XVI), results in a finding by
the Secretary of imminent jeopardy to a
physical trust asset arising from a
violation of the tribal energy resource
agreement or applicable Federal laws,
provisions authorizing the Secretary to
take actions determined by the
Secretary to be necessary to protect
the asset, including reassumption of
responsibility for activities
associated with the development of
energy resources on tribal land until
the violation and any condition that
caused the jeopardy are corrected.
``(E) Periodic review and evaluation under
subparagraph (D) shall be conducted on an
annual basis, except that, after the third
annual review and evaluation, the Secretary and
the Indian tribe may mutually agree to amend
the tribal energy resource agreement to
authorize the review and evaluation under
subparagraph (D) to be conducted once every 2
years.
``(3) The Secretary shall provide notice and
opportunity for public comment on tribal energy
resource agreements submitted for approval under
paragraph (1). The Secretary's review of a tribal
energy resource agreement shall be limited to
activities specified by the provisions of the tribal
energy resource agreement.
``(4) If the Secretary disapproves a tribal energy
resource agreement submitted by an Indian tribe under
paragraph (1), the Secretary shall, not later than 10
days after the date of disapproval--
``(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 under
regulations promulgated under paragraph (8), 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
payments to be made directly to the Indian
tribe, information and documentation of those
payments sufficient to enable the Secretary to
discharge the trust responsibility of the
United States to enforce the terms of, and
protect the rights of the Indian tribe under,
the lease, business agreement, or right-of-way.
``(6)(A) In carrying out this section, the
Secretary shall--
``(i) act in accordance with the trust
responsibility of the United States relating to
mineral and other trust resources; and
``(ii) act in good faith and in the best
interests of the Indian tribes.
``(B) Subject to the provisions of subsections
(a)(2), (b), and (c) waiving the requirement of
Secretarial approval of leases, business agreements,
and rights-of-way executed pursuant to tribal energy
resource agreements approved under this section, and
the provisions of subparagraph (D), nothing in this
section shall absolve the United States from any
responsibility to Indians or Indian tribes, including,
but not limited to, those which derive from the trust
relationship or from any treaties, statutes, and other
laws of the United States, Executive Orders, or
agreements between the United States and any Indian
tribe.
``(C) The Secretary shall continue to fulfill the
trust obligation of the United States to ensure that
the rights and interests of an Indian tribe are
protected if--
``(i) any other party to a lease, business
agreement, or right-of-way violates any
applicable Federal law or the terms of any
lease, business agreement, or right-of-way
under this section; or
``(ii) any provision in a lease, business
agreement, or right-of-way violates the tribal
energy resource agreement pursuant to which the
lease, business agreement, or right-of-way was
executed.
``(D)(i) In this subparagraph, the term `negotiated
term' means any term or provision that is negotiated by
an Indian tribe and any other party to a lease,
business agreement, or right-of-way entered into
pursuant to an approved tribal energy resource
agreement.
``(ii) Notwithstanding subparagraph (B), the United
States shall not be liable to any party (including any
Indian tribe) for any negotiated term of, or any loss
resulting from the negotiated terms of, a lease,
business agreement, or right-of-way executed pursuant
to and in accordance with a tribal energy resource
agreement approved by the Secretary under paragraph
(2).
``(7)(A) In this paragraph, the term `interested
party' means any person (including an entity) that has
demonstrated that an interest of the person has
sustained, or will sustain, an adverse environmental
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 any tribal remedy, and in
accordance with regulations promulgated by the
Secretary under paragraph (8), an interested party may
submit to the Secretary a petition to review the
compliance by an Indian tribe with a tribal energy
resource agreement of the Indian tribe approved by the
Secretary under paragraph (2).
``(C)(i) Not later than 20 days after the date on
which the Secretary receives a petition under
subparagraph (B), the Secretary shall--
``(I) provide to the Indian tribe a copy of
the petition; and
``(II) consult with the Indian tribe
regarding any noncompliance alleged in the
petition.
``(ii) Not later than 45 days after the date on
which a consultation under clause (i)(II) takes place,
the Indian tribe shall respond to any claim made in a
petition under subparagraph (B).
``(iii) The Secretary shall act in accordance with
subparagraphs (D) and (E) only if the Indian tribe--
``(I) denies, or fails to respond to, each
claim made in the petition within the period
described in clause (ii); or
``(II) fails, refuses, or is unable to cure
or otherwise resolve each claim made in the
petition within a reasonable period, as
determined by the Secretary, after the
expiration of the period described in clause
(ii).
``(D)(i) Not later than 120 days after the date on
which the Secretary receives a petition under
subparagraph (B), the Secretary shall determine whether
the Indian tribe is not in compliance with the tribal
energy resource agreement.
``(ii) The Secretary may adopt procedures under
paragraph (8) authorizing an extension of time, not to
exceed 120 days, for making the determination under
clause (i) in any case in which the Secretary
determines that additional time is necessary to
evaluate the allegations of the petition.
``(iii) Subject to subparagraph (E), if the
Secretary determines that the Indian tribe is not in
compliance with the tribal energy resource agreement,
the Secretary shall take such action as the Secretary
determines to be necessary to ensure compliance with
the tribal energy resource agreement, including--
``(I) temporarily suspending any activity
under a lease, business agreement, or right-of-
way under this section until the Indian tribe
is in compliance with the approved tribal
energy resource agreement; or
``(II) rescinding approval of all or part
of the tribal energy resource agreement, and if
all of the agreement is rescinded, reassuming
the responsibility for approval of any future
leases, business agreements, or rights-of-way
described in subsection (a) or (b).
``(E) Before taking an action described in
subparagraph (D)(iii), 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 violations together with
the written determination; and
``(iii) before taking any action described
in subparagraph (D)(iii) 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.
``(F) An Indian tribe described in subparagraph (E)
shall retain all rights to appeal under any regulation
promulgated by the Secretary.
``(8) Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the
Secretary shall promulgate regulations that implement
this subsection, including--
``(A) criteria to be used in determining
the capacity of an Indian tribe under 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;
``(B) a process and requirements in
accordance with which an Indian tribe may--
``(i) voluntarily rescind a tribal
energy resource agreement approved by
the Secretary under this subsection;
and
``(ii) return to the Secretary the
responsibility to approve any future
lease, business agreement, or right-of-
way under this subsection;
``(C) provisions establishing the scope of,
and procedures for, the periodic review and
evaluation described in subparagraphs (D) and
(E) of paragraph (2), including provisions for
review of transactions, reports, site
inspections, and any other review activities
the Secretary determines to be appropriate; and
``(D) provisions describing final agency
actions after exhaustion of administrative
appeals from determinations of the Secretary
under paragraph (7).
``(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.).
``(g) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary such sums as are
necessary for each of fiscal years 2006 through 2016 to carry
out this section and to make grants or provide other
appropriate assistance to Indian tribes to assist the Indian
tribes in developing and implementing tribal energy resource
agreements in accordance with this section.
``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 the Administrators
determine to be appropriate, including administration of
programs of the power marketing administration, in accordance
with this section.
``(c) Action by Administrators.--In carrying out this
section, in accordance with laws in existence on the date of
enactment of the Energy Policy Act of 2005--
``(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 non-federally generated
power from Indian tribes to meet the firming and
reserve requirements of the Western Area Power
Administration; and
``(4) each Administrator shall not--
``(A) pay more than the prevailing market
price for an energy product; or
``(B) 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--
``(A) by the Secretary of Energy using
nonreimbursable funds appropriated for that
purpose; or
``(B) by any appropriate Indian tribe.
``(e) Power Allocation Study.--Not later than 2 years after
the date of enactment of the Energy Policy Act of 2005, the
Secretary of Energy shall submit to Congress a report that--
``(1) describes the use by Indian tribes of Federal
power allocations of the power marketing administration
(or power sold by the Southwestern Power
Administration) to or for the benefit of Indian tribes
in a service area of the power marketing
administration; and
``(2) identifies--
``(A) the quantity of power allocated to,
or used for the benefit of, Indian tribes by
the Western Area Power Administration;
``(B) the quantity of power sold to Indian
tribes by any other power marketing
administration; 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 deliver Federal
power.
``(f) Authorization of Appropriations.--There are
authorized to be appropriated to carry out this section
$750,000, non-reimbursable, to remain available until expended.
``SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY.
``(a) Study.--The Secretary of Energy, in coordination with
the Secretary of the Army and the Secretary, shall conduct a
study of the cost and feasibility of developing a demonstration
project that uses 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 economic and engineering
feasibility of blending wind energy and hydropower
generated from the Missouri River dams operated by the
Army Corps of Engineers, including an assessment of the
costs and benefits of blending wind energy and
hydropower compared to current sources used for firming
power to the Western Area Power Administration;
``(2) review historical and projected requirements
for, patterns of availability and use of, and reasons
for historical patterns concerning the availability of
firming power;
``(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 identify costs associated
with these activities;
``(5) include an independent tribal engineer and a
Western Area Power Administration customer
representative as study team members; and
``(6) incorporate, to the extent appropriate, the
results of the Dakotas Wind Transmission study prepared
by the Western Area Power Administration.
``(c) Report.--Not later than 1 year after the date of
enactment of the Energy Policy Act of 2005, the Secretary of
Energy, the Secretary and the Secretary of the Army shall
submit to Congress a report that describes the results of the
study, including--
``(1) an analysis and comparison of the potential
energy cost or benefits to the customers of the Western
Area Power Administration through the use of combined
wind and hydropower;
``(2) an economic and engineering 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) if found feasible, recommendations for a
demonstration project to be carried out by the Western
Area Power Administration, in partnership with an
Indian tribal government or tribal energy resource
development organization, and Western Area Power
Administration customers to demonstrate the feasibility
and potential of using wind energy produced on Indian
land to supply firming energy to the Western Area Power
Administration; and
``(4) an identification of--
``(A) the economic and environmental costs
of, or benefits to be realized through, a
Federal-tribal-customer partnership; and
``(B) the manner in which a Federal-tribal-
customer partnership could contribute to the
energy security of the United States.
``(d) Funding.--
``(1) Authorization of appropriations.--There is
authorized to be appropriated to carry out this section
$1,000,000, to remain available until expended.
``(2) Nonreimbursability.--Costs incurred by the
Secretary in carrying out this section shall be
nonreimbursable.''.
(b) Conforming Amendments.--The table of contents for the
Energy Policy Act of 1992 is amended by striking the items
relating to title XXVI and inserting the following:
``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. Wind and hydropower feasibility study.''.
SEC. 504. CONSULTATION WITH INDIAN TRIBES.
In carrying out this title and the amendments made by this
title, the Secretary and the Secretary of the Interior shall,
as appropriate and to the maximum extent practicable, involve
and consult with Indian tribes.
SEC. 505. FOUR CORNERS TRANSMISSION LINE PROJECT AND ELECTRIFICATION.
(a) Transmission Line Project.--The Dine Power Authority,
an enterprise of the Navajo Nation, shall be eligible to
receive grants and other assistance under section 217 of the
Department of Energy Organization Act, as added by section 502,
and section 2602 of the Energy Policy Act of 1992, as amended
by this Act, for activities associated with the development of
a transmission line from the Four Corners Area to southern
Nevada, including related power generation opportunities.
(b) Navajo Electrification.--Section 602 of Public Law 106-
511 (114 Stat. 2376) is amended--
(1) in subsection (a)--
(A) in the first sentence, by striking ``5-
year'' and inserting ``10-year''; and
(B) in the third sentence, by striking
``2006'' and inserting ``2011''; and
(2) in the first sentence of subsection (e) by
striking ``2006'' and inserting ``2011''.
SEC. 506. 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,''.
TITLE VI--NUCLEAR MATTERS
Subtitle A--Price-Anderson Act Amendments
SEC. 601. SHORT TITLE.
This subtitle may be cited as the ``Price-Anderson
Amendments Act of 2005''.
SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY.
(a) Indemnification of Nuclear Regulatory Commission
Licensees.--Section 170 c. 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''; and
(2) by striking ``December 31, 2003'' each place it
appears and inserting ``December 31, 2025''.
(b) Indemnification of Department Contractors.--Section 170
d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C.
2210(d)(1)(A)) is amended by striking ``December 31, 2006'' and
inserting ``December 31, 2025''.
(c) Indemnification of Nonprofit Educational
Institutions.--Section 170 k. of the Atomic Energy Act of 1954
(42 U.S.C. 2210(k)) is amended by striking ``August 1, 2002''
each place it appears and inserting ``December 31, 2025''.
SEC. 603. 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.(1)--
(A) by striking ``$63,000,000'' and
inserting ``$95,800,000''; 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 ``August 20, 2003''; and
(C) in subparagraph (A), by striking ``such
date of enactment'' and inserting ``August 20,
2003''.
SEC. 604. DEPARTMENT LIABILITY LIMIT.
(a) Indemnification of Department Contractors.--Section 170
d. 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 170 d. 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 2005, 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 170 e.(1)(B) of the Atomic
Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
(1) by striking ``the maximum amount of financial
protection required under subsection b. or''; and
(2) by striking ``paragraph (3) of subsection d.,
whichever amount is more'' and inserting ``paragraph
(2) of subsection d.''.
SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES.
(a) Amount of Indemnification.--Section 170 d.(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 170 e.(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. 606. REPORTS.
Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C.
2210(p)) is amended by striking ``August 1, 1998'' and
inserting ``December 31, 2021''.
SEC. 607. INFLATION ADJUSTMENT.
Section 170 t. 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 inserting 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. 608. 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. 609. APPLICABILITY.
The amendments made by sections 603, 604, and 605 do not
apply to a nuclear incident that occurs before the date of the
enactment of this Act.
SEC. 610. CIVIL PENALTIES.
(a) Repeal of Automatic Remission.--Section 234A b.(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 1-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 (42 U.S.C. 2011 et seq.) occurring under a contract
entered into before the date of enactment of this section.
Subtitle B--General Nuclear Matters
SEC. 621. LICENSES.
Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2133(c)) is amended by inserting ``from the authorization to
commence operations'' after ``forty years''.
SEC. 622. NUCLEAR REGULATORY COMMISSION SCHOLARSHIP AND FELLOWSHIP
PROGRAM.
(a) In General.--Chapter 19 of the Atomic Energy Act of
1954 is amended by inserting after section 242 (42 U.S.C.
2015a) the following:
``SEC. 243. SCHOLARSHIP AND FELLOWSHIP PROGRAM.
``a. Scholarship Program.--To enable students to study, for
at least 1 academic semester or equivalent term, science,
engineering, or another field of study that the Commission
determines is in a critical skill area related to the
regulatory mission of the Commission, the Commission may carry
out a program to--
``(1) award scholarships to undergraduate students
who--
``(A) are United States citizens; and
``(B) enter into an agreement under
subsection c. to be employed by the Commission
in the area of study for which the scholarship
is awarded.
``b. Fellowship Program.--To enable students to pursue
education in science, engineering, or another field of study
that the Commission determines is in a critical skill area
related to its regulatory mission, in a graduate or
professional degree program offered by an institution of higher
education in the United States, the Commission may carry out a
program to--
``(1) award fellowships to graduate students who--
``(A) are United States citizens; and
``(B) enter into an agreement under
subsection c. to be employed by the Commission
in the area of study for which the fellowship
is awarded.
``c. Requirements.--
``(1) In general.--As a condition of receiving a
scholarship or fellowship under subsection a. or b., a
recipient of the scholarship or fellowship shall enter
into an agreement with the Commission under which, in
return for the assistance, the recipient shall--
``(A) maintain satisfactory academic
progress in the studies of the recipient, as
determined by criteria established by the
Commission;
``(B) agree that failure to maintain
satisfactory academic progress shall constitute
grounds on which the Commission may terminate
the assistance;
``(C) on completion of the academic course
of study in connection with which the
assistance was provided, and in accordance with
criteria established by the Commission, engage
in employment by the Commission for a period
specified by the Commission, that shall be not
less than 1 time and not more than 3 times the
period for which the assistance was provided;
and
``(D) if the recipient fails to meet the
requirements of subparagraph (A), (B), or (C),
reimburse the United States Government for--
``(i) the entire amount of the
assistance provided the recipient under
the scholarship or fellowship; and
``(ii) interest at a rate
determined by the Commission.
``(2) Waiver or suspension.--The Commission may
establish criteria for the partial or total waiver or
suspension of any obligation of service or payment
incurred by a recipient of a scholarship or fellowship
under this section.
``d. Competitive Process.--Recipients of scholarships or
fellowships under this section shall be selected through a
competitive process primarily on the basis of academic merit
and such other criteria as the Commission may establish, with
consideration given to financial need and the goal of promoting
the participation of individuals identified in section 33 or 34
of the Science and Engineering Equal Opportunities Act (42
U.S.C. 1885a, 1885b).
``e. Direct Appointment.--The Commission may appoint
directly, with no further competition, public notice, or
consideration of any other potential candidate, an individual
who has--
``(1) received a scholarship or fellowship awarded
by the Commission under this section; and
``(2) completed the academic program for which the
scholarship or fellowship was awarded.''.
(b) Conforming Amendment.--The table of sections of the
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by
adding after the item relating to section 242 the following:
``Sec. 243. Scholarship and fellowship program.''.
SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES.
Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(w)) is amended--
(1) by striking ``for or is issued'' and all that
follows through ``1702'' and inserting ``to the
Commission for, or is issued by the Commission, a
license or certificate'';
(2) by striking ``483a'' and inserting ``9701'';
and
(3) by striking ``, of applicants for, or holders
of, such licenses or certificates''.
SEC. 624. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL
RETIREES.
(a) In General.--Chapter 14 of the Atomic Energy Act of
1954 (42 U.S.C. 2201 et seq.) is amended by adding at the end
the following:
``SEC. 170C. ELIMINATION OF PENSION OFFSET FOR CERTAIN REHIRED FEDERAL
RETIREES.
``a. In General.--The Commission may waive the application
of section 8344 or 8468 of title 5, United States Code, on a
case-by-case basis for employment of an annuitant--
``(1) in a position of the Commission for which
there is exceptional difficulty in recruiting or
retaining a qualified employee; or
``(2) when a temporary emergency hiring need
exists.
``b. Procedures.--The Commission shall prescribe procedures
for the exercise of authority under this section, including--
``(1) criteria for any exercise of authority; and
``(2) procedures for a delegation of authority.
``c. Effect of Waiver.--An employee as to whom a waiver
under this section is in effect shall not be considered an
employee for purposes of subchapter II of chapter 83, or
chapter 84, of title 5, United States Code.''.
(b) Conforming Amendment.--The table of sections of the
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) is amended by
adding at the end of the items relating to chapter 14 the
following:
``Sec. 170C. Elimination of pension offset for certain rehired Federal
retirees.''.
SEC. 625. ANTITRUST REVIEW.
Section 105 c. of the Atomic Energy Act of 1954 (42 U.S.C.
2135(c)) is amended by adding at the end the following:
``(9) Applicability.--This subsection does not apply to an
application for a license to construct or operate a utilization
facility or production facility under section 103 or 104 b.
that is filed on or after the date of enactment of this
paragraph.''.
SEC. 626. DECOMMISSIONING.
Section 161 i. of the Atomic Energy Act of 1954 (42 U.S.C.
2201(i)) is amended--
(1) by striking ``and (3)'' and inserting ``(3)'';
and
(2) by inserting before the semicolon at the end
the following: ``, and (4) to ensure that sufficient
funds will be available for the decommissioning of any
production or utilization facility licensed under
section 103 or 104 b., including standards and
restrictions governing the control, maintenance, use,
and disbursement by any former licensee under this Act
that has control over any fund for the decommissioning
of the facility''.
SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT.
Title II of the Energy Reorganization Act of 1974 (42
U.S.C. 5841 et seq.) is amended by adding at the end the
following new section:
``LIMITATION ON LEGAL FEE REIMBURSEMENT
``Sec. 212. The Department of Energy shall not, except as
required under a contract entered into before the date of
enactment of this section, reimburse any contractor or
subcontractor of the Department for any legal fees or expenses
incurred with respect to a complaint subsequent to--
``(1) an adverse determination on the merits with
respect to such complaint against the contractor or
subcontractor by the Director of the Department of
Energy's Office of Hearings and Appeals pursuant to
part 708 of title 10, Code of Federal Regulations, or
by a Department of Labor Administrative Law Judge
pursuant to section 211 of this Act; or
``(2) an adverse final judgment by any State or
Federal court with respect to such complaint against
the contractor or subcontractor for wrongful
termination or retaliation due to the making of
disclosures protected under chapter 12 of title 5,
United States Code, section 211 of this Act, or any
comparable State law,
unless the adverse determination or final judgment is reversed
upon further administrative or judicial review.''.
SEC. 628. DECOMMISSIONING PILOT PROGRAM.
(a) Pilot Program.--The Secretary shall establish a
decommissioning pilot program under which the Secretary shall
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 report of the Department relating to the reactor, dated
August 31, 1998.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$16,000,000.
SEC. 629. WHISTLEBLOWER PROTECTION.
(a) Definition of Employer.--Section 211(a)(2) of the
Energy Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is
amended--
(1) in subparagraph (C), by striking ``and'' at the
end;
(2) in subparagraph (D), by striking the period at
the end and inserting a semicolon; and
(3) by adding at the end the following:
``(E) a contractor or subcontractor of the
Commission;
``(F) the Commission; and
``(G) the Department of Energy.''.
(b) De Novo Review.--Subsection (b) of such section 211 is
amended by adding at the end the following new paragraph:
``(4) If the Secretary has not issued a final
decision within 1 year after the filing of a complaint
under paragraph (1), and there is no showing that such
delay is due to the bad faith of the person seeking
relief under this paragraph, such person may bring an
action at law or equity for de novo review in the
appropriate district court of the United States, which
shall have jurisdiction over such an action without
regard to the amount in controversy.''.
SEC. 630. MEDICAL ISOTOPE PRODUCTION.
Section 134 of the Atomic Energy Act of 1954 (42 U.S.C.
2160d) is amended--
(1) in subsection a., by striking ``a. The
Commission'' and inserting ``a. In General.--Except as
provided in subsection b., the Commission'';
(2) by redesignating subsection b. as subsection
c.; and
(3) by inserting after subsection a. the following:
``b. Medical Isotope Production.--
``(1) Definitions.--In this subsection:
``(A) Highly enriched uranium.--The term
`highly enriched uranium' means uranium
enriched to include concentration of U-235
above 20 percent.
``(B) Medical isotope.--The term `medical
isotope' includes Molybdenum 99, Iodine 131,
Xenon 133, and other radioactive materials used
to produce a radiopharmaceutical for
diagnostic, therapeutic procedures or for
research and development.
``(C) Radiopharmaceutical.--The term
`radiopharmaceutical' means a radioactive
isotope that--
``(i) contains byproduct material
combined with chemical or biological
material; and
``(ii) is designed to accumulate
temporarily in a part of the body for
therapeutic purposes or for enabling
the production of a useful image for
use in a diagnosis of a medical
condition.
``(D) Recipient country.--The term
`recipient country' means Canada, Belgium,
France, Germany, and the Netherlands.
``(2) Licenses.--The Commission may issue a license
authorizing the export (including shipment to and use
at intermediate and ultimate consignees specified in
the license) to a recipient country of highly enriched
uranium for medical isotope production if, in addition
to any other requirements of this Act (except
subsection a.), the Commission determines that--
``(A) a recipient country that supplies an
assurance letter to the United States
Government in connection with the consideration
by the Commission of the export license
application has informed the United States
Government that any intermediate consignees and
the ultimate consignee specified in the
application are required to use the highly
enriched uranium solely to produce medical
isotopes; and
``(B) the highly enriched uranium for
medical isotope production will be irradiated
only in a reactor in a recipient country that--
``(i) uses an alternative nuclear
reactor fuel; or
``(ii) is the subject of an
agreement with the United States
Government to convert to an alternative
nuclear reactor fuel when alternative
nuclear reactor fuel can be used in the
reactor.
``(3) Review of physical protection requirements.--
``(A) In general.--The Commission shall
review the adequacy of physical protection
requirements that, as of the date of an
application under paragraph (2), are applicable
to the transportation and storage of highly
enriched uranium for medical isotope production
or control of residual material after
irradiation and extraction of medical isotopes.
``(B) Imposition of additional
requirements.--If the Commission determines
that additional physical protection
requirements are necessary (including a limit
on the quantity of highly enriched uranium that
may be contained in a single shipment), the
Commission shall impose such requirements as
license conditions or through other appropriate
means.
``(4) First report to congress.--
``(A) NAS study.--The Secretary shall enter
into an arrangement with the National Academy
of Sciences to conduct a study to determine--
``(i) the feasibility of procuring
supplies of medical isotopes from
commercial sources that do not use
highly enriched uranium;
``(ii) the current and projected
demand and availability of medical
isotopes in regular current domestic
use;
``(iii) the progress that is being
made by the Department of Energy and
others to eliminate all use of highly
enriched uranium in reactor fuel,
reactor targets, and medical isotope
production facilities; and
``(iv) the potential cost
differential in medical isotope
production in the reactors and target
processing facilities if the products
were derived from production systems
that do not involve fuels and targets
with highly enriched uranium.
``(B) Feasibility.--For the purpose of this
subsection, the use of low enriched uranium to
produce medical isotopes shall be determined to
be feasible if--
``(i) low enriched uranium targets
have been developed and demonstrated
for use in the reactors and target
processing facilities that produce
significant quantities of medical
isotopes to serve United States needs
for such isotopes;
``(ii) sufficient quantities of
medical isotopes are available from low
enriched uranium targets and fuel to
meet United States domestic needs; and
``(iii) the average anticipated
total cost increase from production of
medical isotopes in such facilities
without use of highly enriched uranium
is less than 10 percent.
``(C) Report by the secretary.--Not later
than 5 years after the date of enactment of the
Energy Policy Act of 2005, the Secretary shall
submit to Congress a report that--
``(i) contains the findings of the
National Academy of Sciences made in
the study under subparagraph (A); and
``(ii) discloses the existence of
any commitments from commercial
producers to provide domestic
requirements for medical isotopes
without use of highly enriched uranium
consistent with the feasibility
criteria described in subparagraph (B)
not later than the date that is 4 years
after the date of submission of the
report.
``(5) Second report to congress.--If the study of
the National Academy of Sciences determines under
paragraph (4)(A)(i) that the procurement of supplies of
medical isotopes from commercial sources that do not
use highly enriched uranium is feasible, but the
Secretary is unable to report the existence of
commitments under paragraph (4)(C)(ii), not later than
the date that is 6 years after the date of enactment of
the Energy Policy Act of 2005, the Secretary shall
submit to Congress a report that describes options for
developing domestic supplies of medical isotopes in
quantities that are adequate to meet domestic demand
without the use of highly enriched uranium consistent
with the cost increase described in paragraph
(4)(B)(iii).
``(6) Certification.--At such time as commercial
facilities that do not use highly enriched uranium are
capable of meeting domestic requirements for medical
isotopes, within the cost increase described in
paragraph (4)(B)(iii) and without impairing the
reliable supply of medical isotopes for domestic
utilization, the Secretary shall submit to Congress a
certification to that effect.
``(7) Sunset provision.--After the Secretary
submits a certification under paragraph (6), the
Commission shall, by rule, terminate its review of
export license applications under this subsection.''.
SEC. 631. SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE WASTE.
(a) Responsibility for Activities To Provide Storage
Facility.--The Secretary shall provide to Congress official
notification of the final designation of an entity within the
Department to have the responsibility of completing activities
needed to provide a facility for safely disposing of all
greater-than-Class C low-level radioactive waste.
(b) Reports and Plans.--
(1) Report on permanent disposal facility.--
(A) Plan regarding cost and schedule for
completion of eis and rod.--Not later than 1
year after the date of enactment of this Act,
the Secretary, in consultation with Congress,
shall submit to Congress a report containing an
estimate of the cost and a proposed schedule to
complete an environmental impact statement and
record of decision for a permanent disposal
facility for greater-than-Class C radioactive
waste.
(B) Analysis of alternatives.--Before the
Secretary makes a final decision on the
disposal alternative or alternatives to be
implemented, the Secretary shall--
(i) submit to Congress a report
that describes all alternatives under
consideration, including all
information required in the
comprehensive report making
recommendations for ensuring the safe
disposal of all greater-than-Class C
low-level radioactive waste that was
submitted by the Secretary to Congress
in February 1987; and
(ii) await action by Congress.
(2) Short-term plan for recovery and storage.--
(A) In general.--Not later than 180 days
after the date of enactment of this Act, the
Secretary shall submit to Congress a plan to
ensure the continued recovery and storage of
greater-than-Class C low-level radioactive
sealed sources that pose a security threat
until a permanent disposal facility is
available.
(B) Contents.--The plan shall address
estimated cost, resource, and facility needs.
SEC. 632. PROHIBITION ON NUCLEAR EXPORTS TO COUNTRIES THAT SPONSOR
TERRORISM.
(a) In General.--Section 129 of the Atomic Energy Act of
1954 (42 U.S.C. 2158) is amended--
(1) by inserting ``a.'' before ``No nuclear
materials and equipment''; and
(2) by adding at the end the following new
subsection:
``b.(1) Notwithstanding any other provision of law,
including specifically section 121 of this Act, and except as
provided in paragraphs (2) and (3), no nuclear materials and
equipment or sensitive nuclear technology, including items and
assistance authorized by section 57 b. of this Act and
regulated under part 810 of title 10, Code of Federal
Regulations, and nuclear-related items on the Commerce Control
List maintained under part 774 of title 15 of the Code of
Federal Regulations, shall be exported or reexported, or
transferred or retransferred whether directly or indirectly,
and no Federal agency shall issue any license, approval, or
authorization for the export or reexport, or transfer, or
retransfer, whether directly or indirectly, of these items or
assistance (as defined in this paragraph) to any country whose
government has been identified by the Secretary of State as
engaged in state sponsorship of terrorist activities
(specifically including any country the government of which has
been determined by the Secretary of State under section 620A(a)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)),
section 6(j)(1) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided
support for acts of international terrorism).
``(2) This subsection shall not apply to exports,
reexports, transfers, or retransfers of radiation monitoring
technologies, surveillance equipment, seals, cameras, tamper-
indication devices, nuclear detectors, monitoring systems, or
equipment necessary to safely store, transport, or remove
hazardous materials, whether such items, services, or
information are regulated by the Department of Energy, the
Department of Commerce, or the Commission, except to the extent
that such technologies, equipment, seals, cameras, devices,
detectors, or systems are available for use in the design or
construction of nuclear reactors or nuclear weapons.
``(3) The President may waive the application of paragraph
(1) to a country if the President determines and certifies to
Congress that the waiver will not result in any increased risk
that the country receiving the waiver will acquire nuclear
weapons, nuclear reactors, or any materials or components of
nuclear weapons and--
``(A) the government of such country has not within
the preceding 12-month period willfully aided or
abetted the international proliferation of nuclear
explosive devices to individuals or groups or willfully
aided and abetted an individual or groups in acquiring
unsafeguarded nuclear materials;
``(B) in the judgment of the President, the
government of such country has provided adequate,
verifiable assurances that it will cease its support
for acts of international terrorism;
``(C) the waiver of that paragraph is in the vital
national security interest of the United States; or
``(D) such a waiver is essential to prevent or
respond to a serious radiological hazard in the country
receiving the waiver that may or does threaten public
health and safety.''.
(b) Applicability to Exports Approved for Transfer but Not
Transferred.--Subsection b. of section 129 of Atomic Energy Act
of 1954, as added by subsection (a) of this section, shall
apply with respect to exports that have been approved for
transfer as of the date of the enactment of this Act but have
not yet been transferred as of that date.
SEC. 633. EMPLOYEE BENEFITS.
Section 3110(a) of the USEC Privatization Act (42 U.S.C.
2297h-8(a)) is amended by adding at the end the following new
paragraph:
``(8) Continuity of benefits.--To the extent appropriations
are provided in advance for this purpose or are otherwise
available, not later than 30 days after the date of enactment
of this paragraph, the Secretary shall implement such actions
as are necessary to ensure that any employee who--
``(A) is involved in providing infrastructure or
environmental remediation services at the Portsmouth,
Ohio, or the Paducah, Kentucky, Gaseous Diffusion
Plant;
``(B) has been an employee of the Department of
Energy's predecessor management and integrating
contractor (or its first or second tier
subcontractors), or of the Corporation, at the
Portsmouth, Ohio, or the Paducah, Kentucky, facility;
and
``(C) was eligible as of April 1, 2005, to
participate in or transfer into the Multiple Employer
Pension Plan or the associated multiple employer
retiree health care benefit plans, as defined in those
plans,
shall continue to be eligible to participate in or transfer
into such pension or health care benefit plans.''.
SEC. 634. DEMONSTRATION HYDROGEN PRODUCTION AT EXISTING NUCLEAR POWER
PLANTS.
(a) Demonstration Projects.--The Secretary shall provide
for the establishment of 2 projects in geographic areas that
are regionally and climatically diverse to demonstrate the
commercial production of hydrogen at existing nuclear power
plants.
(b) Economic Analysis.--Prior to making an award under
subsection (a), the Secretary shall determine whether the use
of existing nuclear power plants is a cost-effective means of
producing hydrogen.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary for the purposes of
carrying out this section not more than $100,000,000.
SEC. 635. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF
LIABILITY FOR CERTAIN FOREIGN INCIDENTS.
(a) In General.--Notwithstanding any other provision of
law, no officer of the United States or of any department,
agency, or instrumentality of the United States Government may
enter into any contract or other arrangement, or into any
amendment or modification of a contract or other arrangement,
the purpose or effect of which would be to directly or
indirectly impose liability on the United States Government, or
any department, agency, or instrumentality of the United States
Government, or to otherwise directly or indirectly require an
indemnity by the United States Government, for nuclear
incidents occurring in connection with the design,
construction, or operation of a production facility or
utilization facility in any country whose government has been
identified by the Secretary of State as engaged in state
sponsorship of terrorist activities (specifically including any
country the government of which, as of September 11, 2001, had
been determined by the Secretary of State under section 620A(a)
of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)),
section 6(j)(1) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Export
Control Act (22 U.S.C. 2780(d)) to have repeatedly provided
support for acts of international terrorism). This section
shall not apply to nuclear incidents occurring as a result of
missions, carried out under the direction of the Secretary, the
Secretary of Defense, or the Secretary of State, that are
necessary to safely secure, store, transport, or remove nuclear
materials for nuclear safety or nonproliferation purposes.
(b) Definitions.--The terms used in this section shall have
the same meaning as those terms have under section 11 of the
Atomic Energy Act of 1954 (42 U.S.C. 2014), unless otherwise
expressly provided in this section.
SEC. 636. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as are
necessary to carry out this subtitle and the amendments made by
this subtitle.
SEC. 637. NUCLEAR REGULATORY COMMISSION USER FEES AND ANNUAL CHARGES.
(a) In General.--Section 6101 of the Omnibus Budget
Reconciliation Act of 1990 (42 U.S.C. 2214) is amended--
(1) in subsection (a)--
(A) by striking ``Except as provided in
paragraph (3), the'' and inserting ``The'' in
paragraph (1); and
(B) by striking paragraph (3); and
(2) in subsection (c)--
(A) by striking ``and'' at the end of
paragraph (2)(A)(i);
(B) by striking the period at the end of
paragraph (2)(A)(ii) and inserting a semicolon;
(C) by adding at the end of paragraph
(2)(A) the following new clauses:
``(iii) amounts appropriated to the
Commission for the fiscal year for
implementation of section 3116 of the
Ronald W. Reagan National Defense
Authorization Act for Fiscal Year 2005;
and
``(iv) amounts appropriated to the
Commission for homeland security
activities of the Commission for the
fiscal year, except for the costs of
fingerprinting and background checks
required by section 149 of the Atomic
Energy Act of 1954 (42 U.S.C. 2169) and
the costs of conducting security
inspections.''; and
(D) by amending paragraph (2)(B)(v) to read
as follows:
``(v) 90 percent for fiscal year
2005 and each fiscal year
thereafter.''.
(b) Repeal.--Section 7601 of the Consolidated Omnibus
Budget Reconciliation Act of 1985 (42 U.S.C. 2213) is repealed.
(c) Effective Date.--The amendments made by this section
take effect on October 1, 2006.
SEC. 638. STANDBY SUPPORT FOR CERTAIN NUCLEAR PLANT DELAYS.
(a) Definitions.--In this section:
(1) Advanced nuclear facility.--The term ``advanced
nuclear facility'' means any nuclear facility the
reactor design for which is approved after December 31,
1993, by the Commission (and such design or a
substantially similar design of comparable capacity was
not approved on or before that date).
(2) Combined license.--The term ``combined
license'' means a combined construction and operating
license for an advanced nuclear facility issued by the
Commission.
(3) Commission.--The term ``Commission'' means the
Nuclear Regulatory Commission.
(4) Sponsor.--The term ``sponsor'' means a person
who has applied for or been granted a combined license.
(b) Contract Authority.--
(1) In general.--The Secretary may enter into
contracts under this section with sponsors of an
advanced nuclear facility that cover a total of 6
reactors, with the 6 reactors consisting of not more
than 3 different reactor designs, in accordance with
paragraph (2).
(2) Requirement for contracts.--
(A) Definition of loan cost.--In this
paragraph, the term ``loan cost'' has the
meaning given the term ``cost of a loan
guarantee'' under section 502(5)(C) of the
Federal Credit Reform Act of 1990 (2 U.S.C.
661a(5)(C)).
(B) Establishment of accounts.--There is
established in the Department 2 separate
accounts, which shall be known as the--
(i) ``Standby Support Program
Account''; and
(ii) ``Standby Support Grant
Account''.
(C) Requirement.--The Secretary shall not
enter into a contract under this section unless
the Secretary deposits--
(i) in the Standby Support Program
Account established under subparagraph
(B), funds appropriated to the
Secretary in advance of the contract or
a combination of appropriated funds and
loan guarantee fees that are in an
amount sufficient to cover the loan
costs described in subsection
(d)(5)(A); and
(ii) in the Standby Support Grant
Account established under subparagraph
(B), funds appropriated to the
Secretary in advance of the contract,
paid to the Secretary by the sponsor of
the advanced nuclear facility, or a
combination of appropriations and
payments that are in an amount
sufficient cover the costs described in
subparagraphs (B), (C), and (D) of
subsection (d)(5).
(c) Covered Delays.--
(1) Inclusions.--Under each contract authorized by
this section, the Secretary shall pay the costs
specified in subsection (d), using funds appropriated
or collected for the covered costs, if full power
operation of the advanced nuclear facility is delayed
by--
(A) the failure of the Commission to comply
with schedules for review and approval of
inspections, tests, analyses, and acceptance
criteria established under the combined license
or the conduct of preoperational hearings by
the Commission for the advanced nuclear
facility; or
(B) litigation that delays the commencement
of full-power operations of the advanced
nuclear facility.
(2) Exclusions.--The Secretary may not enter into
any contract under this section that would obligate the
Secretary to pay any costs resulting from--
(A) the failure of the sponsor to take any
action required by law or regulation;
(B) events within the control of the
sponsor; or
(C) normal business risks.
(d) Covered Costs.--
(1) In general.--Subject to paragraphs (2), (3),
and (4), the costs that shall be paid by the Secretary
pursuant to a contract entered into under this section
are the costs that result from a delay covered by the
contract.
(2) Initial 2 reactors.--In the case of the first 2
reactors that receive combined licenses and on which
construction is commenced, the Secretary shall pay--
(A) 100 percent of the covered costs of
delay; but
(B) not more than $500,000,000 per
contract.
(3) Subsequent 4 reactors.--In the case of the next
4 reactors that receive a combined license and on which
construction is commenced, the Secretary shall pay--
(A) 50 percent of the covered costs of
delay that occur after the initial 180-day
period of covered delay; but
(B) not more than $250,000,000 per
contract.
(4) Conditions on payment of certain covered
costs.--
(A) In general.--The obligation of the
Secretary to pay the covered costs described in
subparagraph (B) of paragraph (5) is subject to
the Secretary receiving from appropriations or
payments from other non-Federal sources amounts
sufficient to pay the covered costs.
(B) Non-federal sources.--The Secretary may
receive and accept payments from any non-
Federal source, which shall be made available
without further appropriation for the payment
of the covered costs.
(5) Types of covered costs.--Subject to paragraphs
(2), (3), and (4), the contract entered into under this
section for an advanced nuclear facility shall include
as covered costs those costs that result from a delay
during construction and in gaining approval for fuel
loading and full-power operation, including--
(A) principal or interest on any debt
obligation of an advanced nuclear facility
owned by a non-Federal entity; and
(B) the incremental difference between--
(i) the fair market price of power
purchased to meet the contractual
supply agreements that would have been
met by the advanced nuclear facility
but for the delay; and
(ii) the contractual price of power
from the advanced nuclear facility
subject to the delay.
(e) Requirements.--Any contract between a sponsor and the
Secretary covering an advanced nuclear facility under this
section shall require the sponsor to use due diligence to
shorten, and to end, the delay covered by the contract.
(f) Reports.--For each advanced nuclear facility that is
covered by a contract under this section, the Commission shall
submit to Congress and the Secretary quarterly reports
summarizing the status of licensing actions associated with the
advanced nuclear facility.
(g) Regulations.--
(1) In general.--Subject to paragraphs (2) and (3),
the Secretary shall issue such regulations as are
necessary to carry out this section.
(2) Interim final rulemaking.--Not later than 270
days after the date of enactment of this Act, the
Secretary shall issue for public comment an interim
final rule regulating contracts authorized by this
section.
(3) Notice of final rulemaking.--Not later than 1
year after the date of enactment of this Act, the
Secretary shall issue a notice of final rulemaking
regulating the contracts.
(h) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
SEC. 639. CONFLICTS OF INTEREST RELATING TO CONTRACTS AND OTHER
ARRANGEMENTS.
Section 170A b. of the Atomic Energy Act of 1954 (42 U.S.C.
2210a(b)) is amended--
(1) by redesignating paragraphs (1) and (2) as
subparagraphs (A) and (B), respectively, and indenting
appropriately;
(2) by striking ``b. The Commission'' and inserting
the following:
``b. Evaluation.--
``(1) In general.--Except as provided in paragraph
(2), the Nuclear Regulatory Commission''; and
(3) by adding at the end the following:
``(2) Nuclear regulatory commission.--
Notwithstanding any conflict of interest, the Nuclear
Regulatory Commission may enter into a contract,
agreement, or arrangement with the Department of Energy
or the operator of a Department of Energy facility, if
the Nuclear Regulatory Commission determines that--
``(A) the conflict of interest cannot be
mitigated; and
``(B) adequate justification exists to
proceed without mitigation of the conflict of
interest.''.
Subtitle C--Next Generation Nuclear Plant Project
SEC. 641. PROJECT ESTABLISHMENT.
(a) Establishment.--The Secretary shall establish a project
to be known as the ``Next Generation Nuclear Plant Project''
(referred to in this subtitle as the ``Project'').
(b) Content.--The Project shall consist of the research,
development, design, construction, and operation of a prototype
plant, including a nuclear reactor that--
(1) is based on research and development activities
supported by the Generation IV Nuclear Energy Systems
Initiative under section 942(d); and
(2) shall be used--
(A) to generate electricity;
(B) to produce hydrogen; or
(C) both to generate electricity and to
produce hydrogen.
SEC. 642. PROJECT MANAGEMENT.
(a) Departmental Management.--
(1) In general.--The Project shall be managed in
the Department by the Office of Nuclear Energy,
Science, and Technology.
(2) Generation iv nuclear energy systems program.--
The Secretary may combine the Project with the
Generation IV Nuclear Energy Systems Initiative.
(3) Existing doe project management expertise.--The
Secretary may utilize capabilities for review of
construction projects for advanced scientific
facilities within the Office of Science to track the
progress of the Project.
(b) Laboratory Management.--
(1) Lead laboratory.--The Idaho National Laboratory
shall be the lead National Laboratory for the Project
and shall collaborate with other National Laboratories,
institutions of higher education, other research
institutes, industrial researchers, and international
researchers to carry out the Project.
(2) Industrial partnerships.--
(A) In general.--The Idaho National
Laboratory shall organize a consortium of
appropriate industrial partners that will carry
out cost-shared research, development, design,
and construction activities, and operate
research facilities, on behalf of the Project.
(B) Cost-sharing.--Activities of industrial
partners funded by the Project shall be cost-
shared in accordance with section 988.
(C) Preference.--Preference in determining
the final structure of the consortium or any
partnerships under this subtitle shall be given
to a structure (including designating as a lead
industrial partner an entity incorporated in
the United States) that retains United States
technological leadership in the Project while
maximizing cost sharing opportunities and
minimizing Federal funding responsibilities.
(3) Prototype plant siting.--The prototype nuclear
reactor and associated plant shall be sited at the
Idaho National Laboratory in Idaho.
(4) Reactor test capabilities.--The Project shall
use, if appropriate, reactor test capabilities at the
Idaho National Laboratory.
(5) Other laboratory capabilities.--The Project may
use, if appropriate, facilities at other National
Laboratories.
SEC. 643. PROJECT ORGANIZATION.
(a) Major Project Elements.--The Project shall consist of
the following major program elements:
(1) High-temperature hydrogen production technology
development and validation.
(2) Energy conversion technology development and
validation.
(3) Nuclear fuel development, characterization, and
qualification.
(4) Materials selection, development, testing, and
qualification.
(5) Reactor and balance-of-plant design,
engineering, safety analysis, and qualification.
(b) Project Phases.--The Project shall be conducted in the
following phases:
(1) First project phase.--A first project phase
shall be conducted to--
(A) select and validate the appropriate
technology under subsection (a)(1);
(B) carry out enabling research,
development, and demonstration activities on
technologies and components under paragraphs
(2) through (4) of subsection (a);
(C) determine whether it is appropriate to
combine electricity generation and hydrogen
production in a single prototype nuclear
reactor and plant; and
(D) carry out initial design activities for
a prototype nuclear reactor and plant,
including development of design methods and
safety analytical methods and studies under
subsection (a)(5).
(2) Second project phase.--A second project phase
shall be conducted to--
(A) continue appropriate activities under
paragraphs (1) though (5) of subsection (a);
(B) develop, through a competitive process,
a final design for the prototype nuclear
reactor and plant;
(C) apply for licenses to construct and
operate the prototype nuclear reactor from the
Nuclear Regulatory Commission; and
(D) construct and start up operations of
the prototype nuclear reactor and its
associated hydrogen or electricity production
facilities.
(c) Project Requirements.--
(1) In general.--The Secretary shall ensure that
the Project is structured so as to maximize the
technical interchange and transfer of technologies and
ideas into the Project from other sources of relevant
expertise, including--
(A) the nuclear power industry, including
nuclear powerplant construction firms,
particularly with respect to issues associated
with plant design, construction, and
operational and safety issues;
(B) the chemical processing industry,
particularly with respect to issues relating
to--
(i) the use of process energy for
production of hydrogen; and
(ii) the integration of
technologies developed by the Project
into chemical processing environments;
and
(C) international efforts in areas related
to the Project, particularly with respect to
hydrogen production technologies.
(2) International collaboration.--
(A) In general.--The Secretary shall seek
international cooperation, participation, and
financial contributions for the Project.
(B) Assistance from international
partners.--The Secretary, through the Idaho
National Laboratory, may contract for
assistance from specialists or facilities from
member countries of the Generation IV
International Forum, the Russian Federation, or
other international partners if the specialists
or facilities provide access to cost-effective
and relevant skills or test capabilities.
(C) Partner nations.--The Project may
involve demonstration of selected project
objectives in a partner country.
(D) Generation iv international forum.--The
Secretary shall ensure that international
activities of the Project are coordinated with
the Generation IV International Forum.
(3) Review by nuclear energy research advisory
committee.--
(A) In general.--The Nuclear Energy
Research Advisory Committee of the Department
(referred to in this paragraph as the
``NERAC'') shall--
(i) review all program plans for
the Project and all progress under the
Project on an ongoing basis; and
(ii) ensure that important
scientific, technical, safety, and
program management issues receive
attention in the Project and by the
Secretary.
(B) Additional expertise.--The NERAC shall
supplement the expertise of the NERAC or
appoint subpanels to incorporate into the
review by the NERAC the relevant sources of
expertise described under paragraph (1).
(C) Initial review.--Not later than 180
days after the date of enactment of this Act,
the NERAC shall--
(i) review existing program plans
for the Project in light of the
recommendations of the document
entitled ``Design Features and
Technology Uncertainties for the Next
Generation Nuclear Plant,'' dated June
30, 2004; and
(ii) address any recommendations of
the document not incorporated in
program plans for the Project.
(D) First project phase review.--On a
determination by the Secretary that the
appropriate activities under the first project
phase under subsection (b)(1) are nearly
complete, the Secretary shall request the NERAC
to conduct a comprehensive review of the
Project and to report to the Secretary the
recommendation of the NERAC concerning whether
the Project is ready to proceed to the second
project phase under subsection (b)(2).
(E) Transmittal of reports to congress.--
Not later than 60 days after receiving any
report from the NERAC related to the Project,
the Secretary shall submit to the appropriate
committees of the Senate and the House of
Representatives a copy of the report, along
with any additional views of the Secretary that
the Secretary may consider appropriate.
SEC. 644. NUCLEAR REGULATORY COMMISSION.
(a) In General.--In accordance with section 202 of the
Energy Reorganization Act of 1974 (42 U.S.C. 5842), the Nuclear
Regulatory Commission shall have licensing and regulatory
authority for any reactor authorized under this subtitle.
(b) Licensing Strategy.--Not later than 3 years after the
date of enactment of this Act, the Secretary and the Chairman
of the Nuclear Regulatory Commission shall jointly submit to
the appropriate committees of the Senate and the House of
Representatives a licensing strategy for the prototype nuclear
reactor, including--
(1) a description of ways in which current
licensing requirements relating to light-water reactors
need to be adapted for the types of prototype nuclear
reactor being considered by the Project;
(2) a description of analytical tools that the
Nuclear Regulatory Commission will have to develop to
independently verify designs and performance
characteristics of components, equipment, systems, or
structures associated with the prototype nuclear
reactor;
(3) other research or development activities that
may be required on the part of the Nuclear Regulatory
Commission in order to review a license application for
the prototype nuclear reactor; and
(4) an estimate of the budgetary requirements
associated with the licensing strategy.
(c) Ongoing Interaction.--The Secretary shall seek the
active participation of the Nuclear Regulatory Commission
throughout the duration of the Project to--
(1) avoid design decisions that will compromise
adequate safety margins in the design of the reactor or
impair the accessibility of nuclear safety-related
components of the prototype reactor for inspection and
maintenance;
(2) develop tools to facilitate inspection and
maintenance needed for safety purposes; and
(3) develop risk-based criteria for any future
commercial development of a similar reactor
architecture.
SEC. 645. PROJECT TIMELINES AND AUTHORIZATION OF APPROPRIATIONS.
(a) Target Date to Complete the First Project Phase.--Not
later than September 30, 2011, the Secretary shall--
(1) select the technology to be used by the Project
for high-temperature hydrogen production and the
initial design parameters for the prototype nuclear
plant; or
(2) submit to Congress a report establishing an
alternative date for making the selection.
(b) Design Competition for Second Project Phase.--
(1) In general.--The Secretary, acting through the
Idaho National Laboratory, shall fund not more than 4
teams for not more than 2 years to develop detailed
proposals for competitive evaluation and selection of a
single proposal for a final design of the prototype
nuclear reactor.
(2) Systems integration.--The Secretary may
structure Project activities in the second project
phase to use the lead industrial partner of the
competitively selected design under paragraph (1) in a
systems integration role for final design and
construction of the Project.
(c) Target Date to Complete Project Construction.--Not
later than September 30, 2021, the Secretary shall--
(1) complete construction and begin operations of
the prototype nuclear reactor and associated energy or
hydrogen facilities; or
(2) submit to Congress a report establishing an
alternative date for completion.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary for research and
construction activities under this subtitle (including for
transfer to the Nuclear Regulatory Commission for activities
under section 644 as appropriate)--
(1) $1,250,000,000 for the period of fiscal years
2006 through 2015; and
(2) such sums as are necessary for each of fiscal
years 2016 through 2021.
Subtitle D--Nuclear Security
SEC. 651. NUCLEAR FACILITY AND MATERIALS SECURITY.
(a) Security Evaluations; Design Basis Threat Rulemaking.--
(1) In general.--Chapter 14 of the Atomic Energy
Act of 1954 (42 U.S.C. 2201 et seq.) (as amended by
section 624(a)) is amended by adding at the end the
following:
``SEC. 170D. SECURITY EVALUATIONS.
``a. Security Response Evaluations.--Not less often than
once every 3 years, the Commission shall conduct security
evaluations at each licensed facility that is part of a class
of licensed facilities, as the Commission considers to be
appropriate, to assess the ability of a private security force
of a licensed facility to defend against any applicable design
basis threat.
``b. Force-on-Force Exercises.--(1) The security
evaluations shall include force-on-force exercises.
``(2) The force-on-force exercises shall, to the maximum
extent practicable, simulate security threats in accordance
with any design basis threat applicable to a facility.
``(3) In conducting a security evaluation, the Commission
shall mitigate any potential conflict of interest that could
influence the results of a force-on-force exercise, as the
Commission determines to be necessary and appropriate.
``c. Action by Licensees.--The Commission shall ensure that
an affected licensee corrects those material defects in
performance that adversely affect the ability of a private
security force at that facility to defend against any
applicable design basis threat.
``d. Facilities Under Heightened Threat Levels.--The
Commission may suspend a security evaluation under this section
if the Commission determines that the evaluation would
compromise security at a nuclear facility under a heightened
threat level.
``e. Report.--Not less often than once each year, the
Commission shall submit to the Committee on Environment and
Public Works of the Senate and the Committee on Energy and
Commerce of the House of Representatives a report, in
classified form and unclassified form, that describes the
results of each security response evaluation conducted and any
relevant corrective action taken by a licensee during the
previous year.
``SEC. 170E. DESIGN BASIS THREAT RULEMAKING.
``a. Rulemaking.--The Commission shall--
``(1) not later than 90 days after the date of
enactment of this section, initiate a rulemaking
proceeding, including notice and opportunity for public
comment, to be completed not later than 18 months after
that date, to revise the design basis threats of the
Commission; or
``(2) not later than 18 months after the date of
enactment of this section, complete any ongoing
rulemaking to revise the design basis threats.
``b. Factors.--When conducting its rulemaking, the
Commission shall consider the following, but not be limited
to--
``(1) the events of September 11, 2001;
``(2) an assessment of physical, cyber,
biochemical, and other terrorist threats;
``(3) the potential for attack on facilities by
multiple coordinated teams of a large number of
individuals;
``(4) the potential for assistance in an attack
from several persons employed at the facility;
``(5) the potential for suicide attacks;
``(6) the potential for water-based and air-based
threats;
``(7) the potential use of explosive devices of
considerable size and other modern weaponry;
``(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
``(9) the potential for fires, especially fires of
long duration;
``(10) the potential for attacks on spent fuel
shipments by multiple coordinated teams of a large
number of individuals;
``(11) the adequacy of planning to protect the
public health and safety at and around nuclear
facilities, as appropriate, in the event of a terrorist
attack against a nuclear facility; and
``(12) the potential for theft and diversion of
nuclear materials from such facilities.''.
(2) Conforming amendment.--The table of sections of
the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011)
(as amended by section 624(b)) is amended by adding at
the end of the items relating to chapter 14 the
following:
``Sec. 170D. Security evaluations.
``Sec. 170E. Design basis threat rulemaking.''.
(3) Federal security coordinators.--
(A) Regional offices.--Not later than 18
months after the date of enactment of this Act,
the Nuclear Regulatory Commission (referred to
in this section as the ``Commission'') shall
assign a Federal security coordinator, under
the employment of the Commission, to each
region of the Commission.
(B) Responsibilities.--The Federal security
coordinator shall be responsible for--
(i) communicating with the
Commission and other Federal, State,
and local authorities concerning
threats, including threats against such
classes of facilities as the Commission
determines to be appropriate;
(ii) monitoring such classes of
facilities as the Commission determines
to be appropriate to ensure that they
maintain security consistent with the
security plan in accordance with the
appropriate threat level; and
(iii) assisting in the coordination
of security measures among the private
security forces at such classes of
facilities as the Commission determines
to be appropriate and Federal, State,
and local authorities, as appropriate.
(b) Backup Power for Certain Emergency Notification
Systems.--For any licensed nuclear power plants located where
there is a permanent population, as determined by the 2000
decennial census, in excess of 15,000,000 within a 50-mile
radius of the power plant, not later than 18 months after
enactment of this Act, the Commission shall require that backup
power to be available for the emergency notification system of
the power plant, including the emergency siren warning system,
if the alternating current supply within the 10-mile emergency
planning zone of the power plant is lost.
(c) Additional Provisions.--
(1) Provision of support to university nuclear
safety, security, and environmental protection
programs.--Section 31 b. of the Atomic Energy Act of
1954 (42 U.S.C. 2051(b)) is amended--
(A) by striking ``b. The Commission is
further authorized to make'' and inserting the
following:
``b. Grants and Contributions.--The Commission is
authorized--
``(1) to make'';
(B) in paragraph (1) (as designated by
subparagraph (A)) by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(2) to provide grants, loans, cooperative
agreements, contracts, and equipment to institutions of
higher education (as defined in section 102 of the
Higher Education Act of 1965 (20 U.S.C. 1002)) to
support courses, studies, training, curricula, and
disciplines pertaining to nuclear safety, security, or
environmental protection, or any other field that the
Commission determines to be critical to the regulatory
mission of the Commission.''.
(2) Recruitment tools.--Chapter 14 of the Atomic
Energy Act of 1954 (42 U.S.C. 2201 et seq.) (as amended
by subsection (a)(1)) is amended by adding at the end
the following:
``SEC. 170F. RECRUITMENT TOOLS.
``The Commission may purchase promotional items of nominal
value for use in the recruitment of individuals for
employment.''.
(3) Expenses authorized to be paid by the
commission.--Chapter 14 of the Atomic Energy Act of
1954 (42 U.S.C. 2201 et seq.) (as amended by paragraph
(2)) is amended by adding at the end the following:
``SEC. 170G. EXPENSES AUTHORIZED TO BE PAID BY THE COMMISSION.
``The Commission may--
``(1) pay transportation, lodging, and subsistence
expenses of employees who--
``(A) assist scientific, professional,
administrative, or technical employees of the
Commission; and
``(B) are students in good standing at an
institution of higher education (as defined in
section 102 of the Higher Education Act of 1965
(20 U.S.C. 1002)) pursuing courses related to
the field in which the students are employed by
the Commission; and
``(2) pay the costs of health and medical services
furnished, pursuant to an agreement between the
Commission and the Department of State, to employees of
the Commission and dependents of the employees serving
in foreign countries.''.
(4) Partnership program with institutions of higher
education.--
(A) In general.--Chapter 19 of the Atomic
Energy Act of 1954 (42 U.S.C. 2015 et seq.) (as
amended by section 622(a)) is amended by
inserting after section 243 the following:
``SEC. 244. PARTNERSHIP PROGRAM WITH INSTITUTIONS OF HIGHER EDUCATION.
``a. Definitions.--In this section:
``(1) Hispanic-serving institution.--The term
`Hispanic-serving institution' has the meaning given
the term in section 502(a) of the Higher Education Act
of 1965 (20 U.S.C. 1101a(a)).
``(2) Historically black college and 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) 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. Partnership Program.--The Commission may establish and
participate in activities relating to research, mentoring,
instruction, and training with institutions of higher
education, including Hispanic-serving institutions,
historically Black colleges or universities, and Tribal
colleges, to strengthen the capacity of the institutions--
``(1) to educate and train students (including
present or potential employees of the Commission); and
``(2) to conduct research in the field of science,
engineering, or law, or any other field that the
Commission determines is important to the work of the
Commission.''.
(5) Conforming amendments.--The table of sections
of the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011)
(as amended by subsection (a)(2)) is amended--
(A) by adding at the end of the items
relating to chapter 14 the following:
``Sec. 170F. Recruitment tools.
``Sec. 170G. Expenses authorized to be paid by the Commission.''; and
(B) by inserting after the item relating to
section 243 the following:
``Sec. 244. Partnership program with institutions of higher
education.''.
(d) Radiation Source Protection.--
(1) Amendment.--Chapter 14 of the Atomic Energy Act
of 1954 (42 U.S.C. 2201 et seq.) (as amended by
subsection (c)(3)) is amended by adding at the end the
following:
``SEC. 170H. RADIATION SOURCE PROTECTION.
``a. Definitions.--In this section:
``(1) Code of conduct.--The term `Code of Conduct'
means the code entitled the `Code of Conduct on the
Safety and Security of Radioactive Sources', approved
by the Board of Governors of the International Atomic
Energy Agency and dated September 8, 2003.
``(2) Radiation source.--The term `radiation
source' means--
``(A) a Category 1 Source or a Category 2
Source, as defined in the Code of Conduct; and
``(B) any other material that poses a
threat such that the material is subject to
this section, as determined by the Commission,
by regulation, other than spent nuclear fuel
and special nuclear materials.
``b. Commission Approval.--Not later than 180 days after
the date of enactment of this section, the Commission shall
issue regulations prohibiting a person from--
``(1) exporting a radiation source, unless the
Commission has specifically determined under section 57
or 82, consistent with the Code of Conduct, with
respect to the exportation, that--
``(A) the recipient of the radiation source
may receive and possess the radiation source
under the laws and regulations of the country
of the recipient;
``(B) the recipient country has the
appropriate technical and administrative
capability, resources, and regulatory structure
to ensure that the radiation source will be
managed in a safe and secure manner; and
``(C) before the date on which the
radiation source is shipped--
``(i) a notification has been
provided to the recipient country; and
``(ii) a notification has been
received from the recipient country;
as the Commission determines to be appropriate;
``(2) importing a radiation source, unless the
Commission has determined, with respect to the
importation, that--
``(A) the proposed recipient is authorized
by law to receive the radiation source; and
``(B) the shipment will be made in
accordance with any applicable Federal or State
law or regulation; and
``(3) selling or otherwise transferring ownership
of a radiation source, unless the Commission--
``(A) has determined that the licensee has
verified that the proposed recipient is
authorized under law to receive the radiation
source; and
``(B) has required that the transfer shall
be made in accordance with any applicable
Federal or State law or regulation.
``c. Tracking System.--(1)(A) Not later than 1 year after
the date of enactment of this section, the Commission shall
issue regulations establishing a mandatory tracking system for
radiation sources in the United States.
``(B) In establishing the tracking system under
subparagraph (A), the Commission shall coordinate with the
Secretary of Transportation to ensure compatibility, to the
maximum extent practicable, between the tracking system and any
system established by the Secretary of Transportation to track
the shipment of radiation sources.
``(2) The tracking system under paragraph (1) shall--
``(A) enable the identification of each radiation
source by serial number or other unique identifier;
``(B) require reporting within 7 days of any change
of possession of a radiation source;
``(C) require reporting within 24 hours of any loss
of control of, or accountability for, a radiation
source; and
``(D) provide for reporting under subparagraphs (B)
and (C) through a secure Internet connection.
``d. Penalty.--A violation of a regulation issued under
subsection a. or b. shall be punishable by a civil penalty not
to exceed $1,000,000.
``e. National Academy of Sciences Study.--(1) Not later
than 60 days after the date of enactment of this section, the
Commission shall enter into an arrangement with the National
Academy of Sciences under which the National Academy of
Sciences shall conduct a study of industrial, research, and
commercial uses for radiation sources.
``(2) The study under paragraph (1) shall include a review
of uses of radiation sources in existence on the date on which
the study is conducted, including an identification of any
industrial or other process that--
``(A) uses a radiation source that could be
replaced with an economically and technically
equivalent (or improved) process that does not require
the use of a radiation source; or
``(B) may be used with a radiation source that
would pose a lower risk to public health and safety in
the event of an accident or attack involving the
radiation source.
``(3) Not later than 2 years after the date of enactment of
this section, the Commission shall submit to Congress the
results of the study under paragraph (1).
``f. Task Force on Radiation Source Protection and
Security.--(1) There is established a task force on radiation
source protection and security (referred to in this section as
the `task force').
``(2)(A) The chairperson of the task force shall be the
Chairperson of the Commission (or a designee).
``(B) The membership of the task force shall consist of the
following:
``(i) The Secretary of Homeland Security (or a
designee).
``(ii) The Secretary of Defense (or a designee).
``(iii) The Secretary of Energy (or a designee).
``(iv) The Secretary of Transportation (or a
designee).
``(v) The Attorney General (or a designee).
``(vi) The Secretary of State (or a designee).
``(vii) The Director of National Intelligence (or a
designee).
``(viii) The Director of the Central Intelligence
Agency (or a designee).
``(ix) The Director of the Federal Emergency
Management Agency (or a designee).
``(x) The Director of the Federal Bureau of
Investigation (or a designee).
``(xi) The Administrator of the Environmental
Protection Agency (or a designee).
``(3)(A) The task force, in consultation with Federal,
State, and local agencies, the Conference of Radiation Control
Program Directors, and the Organization of Agreement States,
and after public notice and an opportunity for comment, shall
evaluate, and provide recommendations relating to, the security
of radiation sources in the United States from potential
terrorist threats, including acts of sabotage, theft, or use of
a radiation source in a radiological dispersal device.
``(B) Not later than 1 year after the date of enactment of
this section, and not less than once every 4 years thereafter,
the task force shall submit to Congress and the President a
report, in unclassified form with a classified annex if
necessary, providing recommendations, including recommendations
for appropriate regulatory and legislative changes, for--
``(i) a list of additional radiation sources that
should be required to be secured under this Act, based
on the potential attractiveness of the sources to
terrorists and the extent of the threat to public
health and safety of the sources, taking into
consideration--
``(I) radiation source radioactivity
levels;
``(II) radioactive half-life of a radiation
source;
``(III) dispersability;
``(IV) chemical and material form;
``(V) for radioactive materials with a
medical use, the availability of the sources to
physicians and patients for medical treatment;
and
``(VI) any other factor that the
Chairperson of the Commission determines to be
appropriate;
``(ii) the establishment of, or modifications to, a
national system for recovery of lost or stolen
radiation sources;
``(iii) the storage of radiation sources that are
not used in a safe and secure manner as of the date on
which the report is submitted;
``(iv) modifications to the national tracking
system for radiation sources;
``(v) the establishment of, or modifications to, a
national system (including user fees and other methods)
to provide for the proper disposal of radiation sources
secured under this Act;
``(vi) modifications to export controls on
radiation sources to ensure that foreign recipients of
radiation sources are able and willing to adequately
control radiation sources from the United States;
``(vii)(I) any alternative technologies available
as of the date on which the report is submitted that
may perform some or all of the functions performed by
devices or processes that employ radiation sources; and
``(II) the establishment of appropriate regulations
and incentives for the replacement of the devices and
processes described in subclause (I)--
``(aa) with alternative technologies in
order to reduce the number of radiation sources
in the United States; or
``(bb) with radiation sources that would
pose a lower risk to public health and safety
in the event of an accident or attack involving
the radiation source; and
``(viii) the creation of, or modifications to,
procedures for improving the security of use,
transportation, and storage of radiation sources,
including--
``(I) periodic audits or inspections by the
Commission to ensure that radiation sources are
properly secured and can be fully accounted
for;
``(II) evaluation of the security measures
by the Commission;
``(III) increased fines for violations of
Commission regulations relating to security and
safety measures applicable to licensees that
possess radiation sources;
``(IV) criminal and security background
checks for certain individuals with access to
radiation sources (including individuals
involved with transporting radiation sources);
``(V) requirements for effective and timely
exchanges of information relating to the
results of criminal and security background
checks between the Commission and any State
with which the Commission has entered into an
agreement under section 274 b.;
``(VI) assurances of the physical security
of facilities that contain radiation sources
(including facilities used to temporarily store
radiation sources being transported); and
``(VII) the screening of shipments to
facilities that the Commission determines to be
particularly at risk for sabotage of radiation
sources to ensure that the shipments do not
contain explosives.
``g. Action by Commission.--Not later than 60 days after
the date of receipt by Congress and the President of a report
under subsection f.(3)(B), the Commission, in accordance with
the recommendations of the task force, shall--
``(1) take any action the Commission determines to
be appropriate, including revising the system of the
Commission for licensing radiation sources; and
``(2) ensure that States that have entered into
agreements with the Commission under section 274 b.
take similar action in a timely manner.''.
(2) Conforming amendment.--The table of sections of
the Atomic Energy Act of 1954 (42 U.S.C. prec. 2011)
(as amended by subsection (c)(5)(A)) is amended by
adding at the end of the items relating to chapter 14
the following:
``Sec. 170H. Radiation source protection.''.
(e) Treatment of Accelerator-Produced and Other Radioactive
Material as Byproduct Material.--
(1) Definition of byproduct material.--Section 11
e. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(e))
is amended--
(A) by striking ``means (1) any
radioactive'' and inserting the following:
``means--
``(1) any radioactive'';
(B) by striking ``material, and (2) the
tailings'' and inserting the following:
``material; ``(2) the tailings'';
(C) by striking ``content.'' and inserting
the following: ``content;
``(3)(A) any discrete source of radium-226 that is
produced, extracted, or converted after extraction,
before, on, or after the date of enactment of this
paragraph for use for a commercial, medical, or
research activity; or
``(B) any material that--
``(i) has been made radioactive by use of a
particle accelerator; and
``(ii) is produced, extracted, or converted
after extraction, before, on, or after the date
of enactment of this paragraph for use for a
commercial, medical, or research activity; and
``(4) any discrete source of naturally occurring
radioactive material, other than source material,
that--
``(A) the Commission, in consultation with
the Administrator of the Environmental
Protection Agency, the Secretary of Energy, the
Secretary of Homeland Security, and the head of
any other appropriate Federal agency,
determines would pose a threat similar to the
threat posed by a discrete source of radium-226
to the public health and safety or the common
defense and security; and
``(B) before, on, or after the date of
enactment of this paragraph is extracted or
converted after extraction for use in a
commercial, medical, or research activity.''.
(2) Agreements with governors.--Section 274 b. of
the Atomic Energy Act of 1954 (42 U.S.C. 2021(b)) is
amended by striking ``State--'' and all that follows
through paragraph (4) and inserting the following:
``State:
``(1) Byproduct materials (as defined in section 11
e.).
``(2) Source materials.
``(3) Special nuclear materials in quantities not
sufficient to form a critical mass.''.
(3) Waste disposal.--
(A) Domestic distribution.--Section 81 of
the Atomic Energy Act of 1954 (42 U.S.C. 2111)
is amended--
(i) by striking ``No person may''
and inserting the following:
``a. In General.--No person may''; and
(ii) by adding at the end the
following:
``b. Requirements.--
``(1) In general.--Except as provided in paragraph
(2), byproduct material, as defined in paragraphs (3)
and (4) of section 11 e., may only be transferred to
and disposed of in a disposal facility that--
``(A) is adequate to protect public health
and safety; and
``(B)(i) is licensed by the Commission; or
``(ii) is licensed by a State that has
entered into an agreement with the Commission
under section 274 b., if the licensing
requirements of the State are compatible with
the licensing requirements of the Commission.
``(2) Effect of subsection.--Nothing in this
subsection affects the authority of any entity to
dispose of byproduct material, as defined in paragraphs
(3) and (4) of section 11 e., at a disposal facility in
accordance with any Federal or State solid or hazardous
waste law, including the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.).
``c. Treatment as Low-Level Radioactive Waste.--Byproduct
material, as defined in paragraphs (3) and (4) of section 11
e., disposed of under this section shall not be considered to
be low-level radioactive waste for the purposes of--
``(1) section 2 of the Low-Level Radioactive Waste
Policy Act (42 U.S.C. 2021b); or
``(2) carrying out a compact that is--
``(A) entered into in accordance with that
Act (42 U.S.C. 2021b et seq.); and
``(B) approved by Congress.''.
(B) Definition of low-level radioactive
waste.--Section 2(9) of the Low-Level
Radioactive Waste Policy Act (42 U.S.C.
2021b(9)) is amended--
(i) by redesignating subparagraphs
(A) and (B) as clauses (i) and (ii),
respectively, and indenting the clauses
appropriately;
(ii) in the matter preceding clause
(i) (as redesignated by subparagraph
(A)) by striking ``The term'' and
inserting the following:
``(A) In general.--The term''; and
(iii) by adding at the end the
following:
``(B) Exclusion.--The term `low-level
radioactive waste' does not include byproduct
material (as defined in paragraphs (3) and (4)
of section 11 e. of the Atomic Energy Act of
1954 (42 U.S.C. 2014(e)).''.
(4) Final regulations.--
(A) Regulations.--
(i) In general.--Not later than 18
months after the date of enactment of
this Act, the Commission, after
consultation with States and other
stakeholders, shall issue final
regulations establishing such
requirements as the Commission
determines to be necessary to carry out
this section and the amendments made by
this section.
(ii) Inclusions.--The regulations
shall include a definition of the term
``discrete source'' for purposes of
paragraphs (3) and (4) of section 11 e.
of the Atomic Energy Act of 1954 (42
U.S.C. 2014(e)) (as amended by
paragraph (1)).
(B) Cooperation.--In promulgating
regulations under paragraph (1), the Commission
shall, to the maximum extent practicable--
(i) cooperate with States; and
(ii) use model State standards in
existence on the date of enactment of
this Act.
(C) Transition plan.--
(i) Definition of byproduct
material.--In this paragraph, the term
``byproduct material'' has the meaning
given the term in paragraphs (3) and
(4) of section 11 e. of the Atomic
Energy Act of 1954 (42 U.S.C. 2014(e))
(as amended by paragraph (1)).
(ii) Preparation and publication.--
To facilitate an orderly transition of
regulatory authority with respect to
byproduct material, the Commission, in
issuing regulations under subparagraph
(A), shall prepare and publish a
transition plan for--
(I) States that have not,
before the date on which the
plan is published, entered into
an agreement with the
Commission under section 274 b.
of the Atomic Energy Act of
1954 (42 U.S.C. 2021(b)); and
(II) States that have
entered into an agreement with
the Commission under that
section before the date on
which the plan is published.
(iii) Inclusions.--The transition
plan under clause (ii) shall include--
(I) a description of the
conditions under which a State
may exercise authority over
byproduct material; and
(II) a statement of the
Commission that any agreement
covering byproduct material, as
defined in paragraph (1) or (2)
of section 11 e. of the Atomic
Energy Act of 1954 (42 U.S.C.
2014(e)), entered into between
the Commission and a State
under section 274 b. of that
Act (42 U.S.C. 2021(b)) before
the date of publication of the
transition plan shall be
considered to include byproduct
material, as defined in
paragraph (3) or (4) of section
11 e. of that Act (42 U.S.C.
2014(e)) (as amended by
paragraph (1)), if the Governor
of the State certifies to the
Commission on the date of
publication of the transition
plan that--
(aa) the State has
a program for licensing
byproduct material, as
defined in paragraph
(3) or (4) of section
11e. of the Atomic
Energy Act of 1954,
that is adequate to
protect the public
health and safety, as
determined by the
Commission; and
(bb) the State
intends to continue to
implement the
regulatory
responsibility of the
State with respect to
the byproduct material.
(D) Availability of radiopharmaceuticals.--
In promulgating regulations under subparagraph
(A), the Commission shall consider the impact
on the availability of radiopharmaceuticals
to--
(i) physicians; and
(ii) patients the medical treatment
of which relies on
radiopharmaceuticals.
(5) Waivers.--
(A) In general.--Except as provided in
subparagraph (B), the Commission may grant a
waiver to any entity of any requirement under
this section or an amendment made by this
section with respect to a matter relating to
byproduct material (as defined in paragraphs
(3) and (4) of section 11 e. of the Atomic
Energy Act of 1954 (42 U.S.C. 2014(e)) (as
amended by paragraph (1))) if the Commission
determines that the waiver is in accordance
with the protection of the public health and
safety and the promotion of the common defense
and security.
(B) Exceptions.--
(i) In general.--The Commission may
not grant a waiver under subparagraph
(A) with respect to--
(I) any requirement under
the amendments made by
subsection (c)(1);
(II) a matter relating to
an importation into, or
exportation from, the United
States for a period ending
after the date that is 1 year
after the date of enactment of
this Act; or
(III) any other matter for
a period ending after the date
that is 4 years after the date
of enactment of this Act.
(ii) Waivers to states.--The
Commission shall terminate any waiver
granted to a State under subparagraph
(A) if the Commission determines that--
(I) the State has entered
into an agreement with the
Commission under section 274 b.
of the Atomic Energy Act of
1954 (42 U.S.C. 2021(b));
(II) the agreement
described in subclause (I)
covers byproduct material (as
described in paragraph (3) or
(4) of section 11 e. of the
Atomic Energy Act of 1954 (42
U.S.C. 2014(e)) (as amended by
paragraph (1))); and
(III) the program of the
State for licensing such
byproduct material is adequate
to protect the public health
and safety.
(C) Publication.--The Commission shall
publish in the Federal Register a notice of any
waiver granted under this subsection.
SEC. 652. FINGERPRINTING AND CRIMINAL HISTORY RECORD CHECKS.
Section 149 of the Atomic Energy Act of 1954 (42 U.S.C.
2169) is amended--
(1) in subsection a.--
(A) by striking ``a. The Nuclear'' and all
that follows through ``section 147.'' and
inserting the following:
``a.(1)(A)(i) The Commission shall require each individual
or entity described in clause (ii) to fingerprint each
individual described in subparagraph (B) before the individual
described in subparagraph (B) is permitted access under
subparagraph (B).
``(ii) The individuals and entities referred to in clause
(i) are individuals and entities that, on or before the date on
which an individual is permitted access under subparagraph
(B)--
``(I) are licensed or certified to engage in an
activity subject to regulation by the Commission;
``(II) have filed an application for a license or
certificate to engage in an activity subject to
regulation by the Commission; or
``(III) have notified the Commission in writing of
an intent to file an application for licensing,
certification, permitting, or approval of a product or
activity subject to regulation by the Commission.
``(B) The Commission shall require to be fingerprinted any
individual who--
``(i) is permitted unescorted access to--
``(I) a utilization facility; or
``(II) radioactive material or other
property subject to regulation by the
Commission that the Commission determines to be
of such significance to the public health and
safety or the common defense and security as to
warrant fingerprinting and background checks;
or
``(ii) is permitted access to safeguards
information under section 147.'';
(B) by striking ``All fingerprints obtained
by a licensee or applicant as required in the
preceding sentence'' and inserting the
following:
``(2) All fingerprints obtained by an individual or entity
as required in paragraph (1)'';
(C) by striking ``The costs of any
identification and records check conducted
pursuant to the preceding sentence shall be
paid by the licensee or applicant.'' and
inserting the following:
``(3) The costs of an identification or records check under
paragraph (2) shall be paid by the individual or entity
required to conduct the fingerprinting under paragraph
(1)(A).''; and
(D) by striking ``Notwithstanding any other
provision of law, the Attorney General may
provide all the results of the search to the
Commission, and, in accordance with regulations
prescribed under this section, the Commission
may provide such results to licensee or
applicant submitting such fingerprints.'' and
inserting the following:
``(4) Notwithstanding any other provision of law--
``(A) the Attorney General may provide any result
of an identification or records check under paragraph
(2) to the Commission; and
``(B) the Commission, in accordance with
regulations prescribed under this section, may provide
the results to the individual or entity required to
conduct the fingerprinting under paragraph (1)(A).'';
(2) in subsection c.--
(A) by striking ``, subject to public
notice and comment, regulations--'' and
inserting ``requirements--''; and
(B) in paragraph (2)(B), by striking
``unescorted access to the facility of a
licensee or applicant'' and inserting
``unescorted access to a utilization facility,
radioactive material, or other property
described in subsection a.(1)(B)'';
(3) by redesignating subsection d. as subsection
e.; and
(4) by inserting after subsection c. the following:
``d. The Commission may require a person or individual to
conduct fingerprinting under subsection a.(1) by authorizing or
requiring the use of any alternative biometric method for
identification that has been approved by--
``(1) the Attorney General; and
``(2) the Commission, by regulation.''.
SEC. 653. USE OF FIREARMS BY SECURITY PERSONNEL.
The Atomic Energy Act of 1954 is amended by inserting after
section 161 (42 U.S.C. 2201) the following:
``SEC. 161A. USE OF FIREARMS BY SECURITY PERSONNEL.
``a. Definitions.--In this section, the terms `handgun',
`rifle', `shotgun', `firearm', `ammunition', `machinegun',
`short-barreled shotgun', and `short-barreled rifle' have the
meanings given the terms in section 921(a) of title 18, United
States Code.
``b. Authorization.--Notwithstanding subsections (a)(4),
(a)(5), (b)(2), (b)(4), and (o) of section 922 of title 18,
United States Code, section 925(d)(3) of title 18, United
States Code, section 5844 of the Internal Revenue Code of 1986,
and any law (including regulations) of a State or a political
subdivision of a State that prohibits the transfer, receipt,
possession, transportation, importation, or use of a handgun, a
rifle, a shotgun, a short-barreled shotgun, a short-barreled
rifle, a machinegun, a semiautomatic assault weapon, ammunition
for any such gun or weapon, or a large capacity ammunition
feeding device, in carrying out the duties of the Commission,
the Commission may authorize the security personnel of any
licensee or certificate holder of the Commission (including an
employee of a contractor of such a licensee or certificate
holder) to transfer, receive, possess, transport, import, and
use 1 or more such guns, weapons, ammunition, or devices, if
the Commission determines that--
``(1) the authorization is necessary to the
discharge of the official duties of the security
personnel; and
``(2) the security personnel--
``(A) are not otherwise prohibited from
possessing or receiving a firearm under Federal
or State laws relating to possession of
firearms by a certain category of persons;
``(B) have successfully completed any
requirement under this section for training in
the use of firearms and tactical maneuvers;
``(C) are engaged in the protection of--
``(i) a facility owned or operated
by a licensee or certificate holder of
the Commission that is designated by
the Commission; or
``(ii) radioactive material or
other property owned or possessed by a
licensee or certificate holder of the
Commission, or that is being
transported to or from a facility owned
or operated by such a licensee or
certificate holder, and that has been
determined by the Commission to be of
significance to the common defense and
security or public health and safety;
and
``(D) are discharging the official duties
of the security personnel in transferring,
receiving, possessing, transporting, or
importing the weapons, ammunition, or devices.
``c. Background Checks.--A person that receives, possesses,
transports, imports, or uses a weapon, ammunition, or a device
under subsection (b) shall be subject to a background check by
the Attorney General, based on fingerprints and including a
background check under section 103(b) of the Brady Handgun
Violence Prevention Act (Public Law 103-159; 18 U.S.C. 922
note) to determine whether the person is prohibited from
possessing or receiving a firearm under Federal or State law.
``d. Effective Date.--This section takes effect on the date
on which guidelines are issued by the Commission, with the
approval of the Attorney General, to carry out this section.''
SEC. 654. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.
Section 229 of the Atomic Energy Act of 1954 (42 U.S.C.
2278a) is amended--
(1) by striking ``Sec. 229, Trespass Upon
Commission Installations.--'' and inserting the
following:
``SEC. 229. TRESPASS ON COMMISSION INSTALLATIONS.'';
(2) by adjusting the indentations of subsections
a., b., and c. so as to reflect proper subsection
indentations; and
(3) in subsection a.--
(A) in the first sentence, by striking ``a.
The'' and inserting the following:
``a.(1) The'';
(B) in the second sentence, by striking
``Every'' and inserting the following:
``(2) Every''; and
(C) in paragraph (1) (as designated by
subparagraph (A))--
(i) by striking ``or in the
custody'' and inserting ``in the
custody''; and
(ii) by inserting ``, or subject to
the licensing authority of the
Commission or certification by the
Commission under this Act or any other
Act'' before the period.
SEC. 655. SABOTAGE OF NUCLEAR FACILITIES, FUEL, OR DESIGNATED MATERIAL.
(a) In General.--Section 236a. of the Atomic Energy Act of
1954 (42 U.S.C. 2284(a)) is amended--
(1) in paragraph (2), by striking ``storage
facility'' and inserting ``treatment, storage, or
disposal facility'';
(2) in paragraph (3)--
(A) by striking ``such a utilization
facility'' and inserting ``a utilization
facility licensed under this Act''; and
(B) by striking ``or'' at the end;
(3) in paragraph (4)--
(A) by striking ``facility licensed'' and
inserting ``, uranium conversion, or nuclear
fuel fabrication facility licensed or
certified''; and
(B) by striking the comma at the end and
inserting a semicolon; and
(4) by inserting after paragraph (4) the following:
``(5) any production, utilization, waste storage,
waste treatment, waste disposal, uranium enrichment,
uranium conversion, or nuclear fuel fabrication
facility subject to licensing or certification under
this Act during construction of the facility, if the
destruction or damage caused or attempted to be caused
could adversely affect public health and safety during
the operation of the facility;
``(6) any primary facility or backup facility from
which a radiological emergency preparedness alert and
warning system is activated; or
``(7) any radioactive material or other property
subject to regulation by the Commission that, before
the date of the offense, the Commission determines, by
order or regulation published in the Federal Register,
is of significance to the public health and safety or
to common defense and security;''.
(b) Conforming Amendment.--Section 236 of the Atomic Energy
Act of 1954 (42 U.S.C. 2284) is amended by striking
``intentionally and willfully'' each place it appears and
inserting ``knowingly''.
SEC. 656. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954
(42 U.S.C. 2201-2210b) (as amended by section 651(d)(1)) is
amended by adding at the end the following new section:
``SEC. 170I. SECURE TRANSFER OF NUCLEAR MATERIALS.
``a. The Commission shall establish a system to ensure that
materials described in subsection b., when transferred or
received in the United States by any party pursuant to an
import or export license issued pursuant to this Act, are
accompanied by a manifest describing the type and amount of
materials being transferred or received. Each individual
receiving or accompanying the transfer of such materials shall
be subject to a security background check conducted by
appropriate Federal entities.
``b. Except as otherwise provided by the Commission by
regulation, the materials referred to in subsection a. are
byproduct materials, source materials, special nuclear
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as defined
in section 2(16) of the Nuclear Waste Policy Act of 1982 (42
U.S.C. 10101(16))).''.
(b) Regulations.--Not later than 1 year after the date of
the enactment of this Act, and from time to time thereafter as
it considers necessary, the Nuclear Regulatory Commission shall
issue regulations identifying radioactive materials or classes
of individuals that, consistent with the protection of public
health and safety and the common defense and security, are
appropriate exceptions to the requirements of section 170D of
the Atomic Energy Act of 1954, as added by subsection (a) of
this section.
(c) Effective Date.--The amendment made by subsection (a)
shall take effect upon the issuance of regulations under
subsection (b), except that the background check requirement
shall become effective on a date established by the Commission.
(d) Effect on Other Law.--Nothing in this section or the
amendment made by this section shall waive, modify, or affect
the application of chapter 51 of title 49, United States Code,
part A of subtitle V of title 49, United States Code, part B of
subtitle VI of title 49, United States Code, and title 23,
United States Code.
(e) Conforming Amendment.--The table of sections of the
Atomic Energy Act of 1954 (42 U.S.C. prec. 2011) (as amended by
subsection (a)) is amended by adding at the end of the items
relating to chapter 14 the following:
``Sec. 170I. Secure transfer of nuclear materials.''.
SEC. 657. DEPARTMENT OF HOMELAND SECURITY CONSULTATION.
Before issuing a license for a utilization facility, the
Nuclear Regulatory Commission shall consult with the Department
of Homeland Security concerning the potential vulnerabilities
of the location of the proposed facility to terrorist attack.
TITLE VII--VEHICLES AND FUELS
Subtitle A--Existing 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 in which--
``(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.
``(III) The Secretary shall monitor compliance with
this subparagraph by all such fleets and shall report
annually to 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. 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. 703. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.
(a) Alternative Compliance.--Title V of the Energy Policy
Act of 1992 (42 U.S.C. 13251 et seq.) is amended--
(1) by redesignating section 514 (42 U.S.C. 13264)
as section 515; and
(2) by inserting after section 513 (42 U.S.C.
13263) the following:
``SEC. 514. ALTERNATIVE COMPLIANCE.
``(a) Application for Waiver.--Any covered person subject
to section 501 and any State subject to 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 shall grant a waiver
of the requirements of section 501 or 507(o) on a showing that
the fleet owned, operated, leased, or otherwise controlled by
the State or covered person--
``(1) will achieve a reduction in the annual
consumption of petroleum fuels by the fleet equal to--
``(A) the reduction in consumption of
petroleum that would result from 100 percent
cumulative compliance with the fuel use
requirements of section 501; or
``(B) in the case of an entity covered
under section 507(o), a reduction equal to the
annual consumption by the State entity of
alternative fuels if all of the cumulative
alternative fuel vehicles of the State entity
given credit under section 508 were to use
alternative fuel 100 percent of the time; and
``(2) is in compliance with all applicable vehicle
emission standards established by the Administrator of
the Environmental Protection Agency under the Clean Air
Act (42 U.S.C. 7401 et seq.).
``(c) Reporting Requirement.--Not later than December 31 of
a model year, any State or covered person granted a waiver
under this section for the preceding model year shall submit to
the Secretary an annual report that--
``(1) certifies the quantity of the petroleum motor
fuel reduction of the State or covered person during
the preceding model year; and
``(2) projects the baseline quantity of the
petroleum motor fuel reduction of the State or covered
person during the following model year.
``(d) Revocation of Waiver.--If a State or covered person
that receives a waiver under this section fails to comply with
this section, the Secretary--
``(1) shall revoke the waiver; and
``(2) may impose on the State or covered person a
penalty under section 512.''.
(b) Conforming Amendment.--Section 511 of the Energy Policy
Act of 1992 (42 U.S.C. 13261) is amended by striking ``or 507''
and inserting ``507, or 514''.
(c) Table of Contents Amendment.--The table of contents of
the Energy Policy Act of 1992 (42 U.S.C. prec. 13201) is
amended by striking the item relating to section 514 and
inserting the following:
``Sec. 514. Alternative compliance.
``Sec. 515. Authorization of appropriations.''.
SEC. 704. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.
(a) In General.--Not later than 180 days 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--
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the
market; and
(3) the cost of alternative fueled vehicles.
(b) Topics.--As part of the study under subsection (a), 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 quantity, by type, of alternative fuel
actually used in alternative fueled vehicles acquired
by fleets or covered persons;
(3) the quantity of petroleum displaced by the use
of alternative fuels in alternative fueled vehicles
acquired by fleets or covered persons;
(4) the direct and indirect costs of compliance
with requirements under titles III, IV, and V of the
Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.),
including--
(A) vehicle acquisition requirements
imposed on fleets or covered persons;
(B) administrative and recordkeeping
expenses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee
expenses; and
(E) any other factors or expenses the
Secretary determines to be necessary to compile
reliable estimates of the overall costs and
benefits of complying with programs under those
titles for fleets, covered persons, and the
national economy;
(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; and
(6) the projected impact of amendments to the
Energy Policy Act of 1992 made by this title.
(c) Report.--Upon completion of the study under this
section, the Secretary shall submit to Congress a report that
describes the results of the study 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.).
SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTERNATIVE FUELED VEHICLE
PURCHASING REQUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13218(b)(1)) is amended by striking ``1 year after the
date of enactment of this subsection'' and inserting ``February
15, 2006''.
SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMERCIALIZATION
INITIATIVE.
(a) Definitions.--In this section:
(1) Eligible entity.--The term eligible entity
means--
(A) a for-profit corporation;
(B) a nonprofit corporation; or
(C) an institution of higher education.
(2) Program.--The term ``program'' means a program
established under subsection (b).
(b) Establishment.--The Secretary shall establish a program
to improve technologies for the commercialization of--
(1) a combination hybrid/flexible fuel vehicle; or
(2) a plug-in hybrid/flexible fuel vehicle.
(c) Grants.--In carrying out the program, the Secretary
shall provide grants that give preference to proposals that--
(1) achieve the greatest reduction in miles per
gallon of petroleum fuel consumption;
(2) achieve not less than 250 miles per gallon of
petroleum fuel consumption; and
(3) have the greatest potential of
commercialization to the general public within 5 years.
(d) Verification.--Not later than 90 days after the date of
enactment of this Act, the Secretary shall publish in the
Federal Register procedures to verify--
(1) the hybrid/flexible fuel vehicle technologies
to be demonstrated; and
(2) that grants are administered in accordance with
this section.
(e) Report.--Not later than 260 days after the date of
enactment of this Act, and annually thereafter, the Secretary
shall submit to Congress a report that--
(1) identifies the grant recipients;
(2) describes the technologies to be funded under
the program;
(3) assesses the feasibility of the technologies
described in paragraph (2) in meeting the goals
described in subsection (c);
(4) identifies applications submitted for the
program that were not funded; and
(5) makes recommendations for Federal legislation
to achieve commercialization of the technology
demonstrated.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section, to remain
available until expended--
(1) $3,000,000 for fiscal year 2006;
(2) $7,000,000 for fiscal year 2007;
(3) $10,000,000 for fiscal year 2008; and
(4) $20,000,000 for fiscal year 2009.
SEC. 707. EMERGENCY EXEMPTION.
Section 301 of the Energy Policy Act of 1992 (42 U.S.C.
13211) is amended in paragraph (9)(E) by inserting before the
semicolon at the end ``, including vehicles directly used in
the emergency repair of transmission lines and in the
restoration of electricity service following power outages, as
determined by the Secretary''.
Subtitle B--Hybrid Vehicles, Advanced Vehicles, and Fuel Cell Buses
PART 1--HYBRID VEHICLES
SEC. 711. HYBRID VEHICLES.
The Secretary shall accelerate efforts directed toward the
improvement of batteries and other rechargeable energy storage
systems, power electronics, hybrid systems integration, and
other technologies for use in hybrid vehicles.
SEC. 712. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES.
(a) Program.--The Secretary shall establish a program to
encourage domestic production and sales of efficient hybrid and
advanced diesel vehicles. The program shall include grants to
automobile manufacturers to encourage domestic production of
efficient hybrid and advanced diesel vehicles.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section such sums as may be necessary for each of the fiscal
years 2006 through 2015.
PART 2--ADVANCED VEHICLES
SEC. 721. PILOT PROGRAM.
(a) Establishment.--The Secretary, in consultation with the
Secretary of Transportation, shall establish a competitive
grant pilot program (referred to in this part as the ``pilot
program''), to be administered through the Clean Cities Program
of the Department, to provide not more than 30 geographically
dispersed project grants to State governments, local
governments, or metropolitan transportation authorities to
carry out a project or projects for the purposes described in
subsection (b).
(b) Grant Purposes.--A grant under this section may be used
for the following purposes:
(1) The acquisition of alternative fueled vehicles
or fuel cell vehicles, including--
(A) passenger vehicles (including
neighborhood electric vehicles); and
(B) motorized 2-wheel bicycles or other
vehicles for use by law enforcement personnel
or other State or local government or
metropolitan transportation authority
employees.
(2) The acquisition of alternative fueled vehicles,
hybrid vehicles, or fuel cell vehicles, including--
(A) buses used for public transportation or
transportation to and from schools;
(B) delivery vehicles for goods or
services; and
(C) ground support vehicles at public
airports (including vehicles to carry baggage
or push or pull airplanes toward or away from
terminal gates).
(3) The acquisition of ultra-low sulfur diesel
vehicles.
(4) Installation or acquisition of infrastructure
necessary to directly support an alternative fueled
vehicle, fuel cell vehicle, or hybrid vehicle project
funded by the grant, including fueling and other
support equipment.
(5) Operation and maintenance of vehicles,
infrastructure, and equipment acquired as part of a
project funded by the grant.
(c) Applications.--
(1) Requirements.--
(A) In general.--The Secretary shall issue
requirements for applying for grants under the
pilot program.
(B) Minimum requirements.--At a minimum,
the Secretary shall require that an application
for a grant--
(i) be submitted by the head of a
State or local government or a
metropolitan transportation authority,
or any combination thereof, and a
registered participant in the Clean
Cities Program of the Department; and
(ii) include--
(I) a description of the
project proposed in the
application, including how the
project meets the requirements
of this part;
(II) an estimate of the
ridership or degree of use of
the project;
(III) an estimate of the
air pollution emissions reduced
and fossil fuel displaced as a
result of the project, and a
plan to collect and disseminate
environmental data, related to
the project to be funded under
the grant, over the life of the
project;
(IV) a description of how
the project will be sustainable
without Federal assistance
after the completion of the
term of the grant;
(V) a complete description
of the costs of the project,
including acquisition,
construction, operation, and
maintenance costs over the
expected life of the project;
(VI) a description of which
costs of the project will be
supported by Federal assistance
under this part; and
(VII) documentation to the
satisfaction of the Secretary
that diesel fuel containing
sulfur at not more than 15
parts per million is available
for carrying out the project,
and a commitment by the
applicant to use such fuel in
carrying out the project.
(2) Partners.--An applicant under paragraph (1) may
carry out a project under the pilot program in
partnership with public and private entities.
(d) Selection Criteria.--In evaluating applications under
the pilot program, the Secretary shall--
(1) consider each applicant's previous experience
with similar projects; and
(2) give priority consideration to applications
that--
(A) are most likely to maximize protection
of the environment;
(B) demonstrate the greatest commitment on
the part of the applicant to ensure funding for
the proposed project and the greatest
likelihood that the project will be maintained
or expanded after Federal assistance under this
part is completed; and
(C) exceed the minimum requirements of
subsection (c)(1)(B)(ii).
(e) Pilot Project Requirements.--
(1) Maximum amount.--The Secretary shall not
provide more than $15,000,000 in Federal assistance
under the pilot program to any applicant.
(2) Cost sharing.--The Secretary shall not provide
more than 50 percent of the cost, incurred during the
period of the grant, of any project under the pilot
program.
(3) Maximum period of grants.--The Secretary shall
not fund any applicant under the pilot program for more
than 5 years.
(4) Deployment and distribution.--The Secretary
shall seek to the maximum extent practicable to ensure
a broad geographic distribution of project sites.
(5) Transfer of information and knowledge.--The
Secretary shall establish mechanisms to ensure that the
information and knowledge gained by participants in the
pilot program are transferred among the pilot program
participants and to other interested parties, including
other applicants that submitted applications.
(f) Schedule.--
(1) Publication.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
publish in the Federal Register, Commerce Business
Daily, and elsewhere as appropriate, a request for
applications to undertake projects under the pilot
program. Applications shall be due not later than 180
days after the date of publication of the notice.
(2) Selection.--Not later than 180 days after the
date by which applications for grants are due, the
Secretary shall select by competitive, peer reviewed
proposal, all applications for projects to be awarded a
grant under the pilot program.
(g) Definitions.--For purposes of carrying out the pilot
program, the Secretary shall issue regulations defining any
term, as the Secretary determines to be necessary.
SEC. 722. REPORTS TO CONGRESS.
(a) Initial Report.--Not later than 60 days after the date
on which grants are awarded under this part, the Secretary
shall submit to Congress a report containing--
(1) an identification of the grant recipients and a
description of the projects to be funded;
(2) an identification of other applicants that
submitted applications for the pilot program; and
(3) a description of the mechanisms used by the
Secretary to ensure that the information and knowledge
gained by participants in the pilot program are
transferred among the pilot program participants and to
other interested parties, including other applicants
that submitted applications.
(b) Evaluation.--Not later than 3 years after the date of
enactment of this Act, and annually thereafter until the pilot
program ends, the Secretary shall submit to Congress a report
containing an evaluation of the effectiveness of the pilot
program, including--
(1) an assessment of the benefits to the
environment derived from the projects included in the
pilot program; and
(2) an estimate of the potential benefits to the
environment to be derived from widespread application
of alternative fueled vehicles and ultra-low sulfur
diesel vehicles.
SEC. 723. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Secretary to
carry out this part $200,000,000, to remain available until
expended.
PART 3--FUEL CELL BUSES
SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION.
(a) In General.--The Secretary, in consultation with the
Secretary of Transportation, shall establish a transit bus
demonstration program to make competitive, merit-based awards
for 5-year projects to demonstrate not more than 25 fuel cell
transit buses (and necessary infrastructure) in 5
geographically dispersed localities.
(b) Preference.--In selecting projects under this section,
the Secretary shall give preference to projects that are most
likely to mitigate congestion and improve air quality.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$10,000,000 for each of fiscal years 2006 through 2010.
Subtitle C--Clean School Buses
SEC. 741. CLEAN SCHOOL BUS PROGRAM.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(2) Alternative fuel.--The term ``alternative
fuel'' means--
(A) liquefied natural gas, compressed
natural gas, liquefied petroleum gas, hydrogen,
or propane;
(B) methanol or ethanol at no less than 85
percent by volume; or
(C) biodiesel conforming with standards
published by the American Society for Testing
and Materials as of the date of enactment of
this Act.
(3) Clean school bus.--The term ``clean school
bus'' means a school bus with a gross vehicle weight of
greater than 14,000 pounds that--
(A) is powered by a heavy duty engine; and
(B) is operated solely on an alternative
fuel or ultra-low sulfur diesel fuel.
(4) Eligible recipient.--
(A) In general.--Subject to subparagraph
(B), the term ``eligible recipient'' means--
(i) 1 or more local or State
governmental entities responsible for--
(I) providing school bus
service to 1 or more public
school systems; or
(II) the purchase of school
buses;
(ii) 1 or more contracting entities
that provide school bus service to 1 or
more public school systems; or
(iii) a nonprofit school
transportation association.
(B) Special requirements.--In the case of
eligible recipients identified under clauses
(ii) and (iii), the Administrator shall
establish timely and appropriate requirements
for notice and may establish timely and
appropriate requirements for approval by the
public school systems that would be served by
buses purchased or retrofit using grant funds
made available under this section.
(5) Retrofit technology.--The term ``retrofit
technology'' means a particulate filter or other
emissions control equipment that is verified or
certified by the Administrator or the California Air
Resources Board as an effective emission reduction
technology when installed on an existing school bus.
(6) Ultra low sulfur diesel fuel.--The term
``ultra-low sulfur diesel fuel'' means diesel fuel that
contains sulfur at not more than 15 parts per million.
(b) Program for Retrofit or Replacement of Certain Existing
School Buses With Clean School Buses.--
(1) Establishment.--
(A) In general.--The Administrator, in
consultation with the Secretary and other
appropriate Federal departments and agencies,
shall establish a program for awarding grants
on a competitive basis to eligible recipients
for the replacement, or retrofit (including
repowering, aftertreatment, and remanufactured
engines) of, certain existing school buses.
(B) Balancing.--In awarding grants under
this section, the Administrator shall, to the
maximum extent practicable, achieve an
appropriate balance between awarding grants--
(i) to replace school buses; and
(ii) to install retrofit
technologies.
(2) Priority of grant applications.--
(A) Replacement.--In the case of grant
applications to replace school buses, the
Administrator shall give priority to applicants
that propose to replace school buses
manufactured before model year 1977.
(B) Retrofitting.--In the case of grant
applications to retrofit school buses, the
Administrator shall give priority to applicants
that propose to retrofit school buses
manufactured in or after model year 1991.
(3) Use of school bus fleet.--
(A) In general.--All school buses acquired
or retrofitted with funds provided under this
section shall be operated as part of the school
bus fleet for which the grant was made for not
less than 5 years.
(B) Maintenance, operation, and fueling.--
New school buses and retrofit technology shall
be maintained, operated, and fueled according
to manufacturer recommendations or State
requirements.
(4) Retrofit grants.--The Administrator may award
grants for up to 100 percent of the retrofit
technologies and installation costs.
(5) Replacement grants.--
(A) Eligibility for 50 percent grants.--The
Administrator may award grants for replacement
of school buses in the amount of up to \1/2\ of
the acquisition costs (including fueling
infrastructure) for--
(i) clean school buses with engines
manufactured in model year 2005 or 2006
that emit not more than--
(I) 1.8 grams per brake
horsepower-hour of non-methane
hydrocarbons and oxides of
nitrogen; and
(II) .01 grams per brake
horsepower-hour of particulate
matter; or
(ii) clean school buses with
engines manufactured in model year
2007, 2008, or 2009 that satisfy
regulatory requirements established by
the Administrator for emissions of
oxides of nitrogen and particulate
matter to be applicable for school
buses manufactured in model year 2010.
(B) Eligibility for 25 percent grants.--The
Administrator may award grants for replacement
of school buses in the amount of up to \1/4\ of
the acquisition costs (including fueling
infrastructure) for--
(i) clean school buses with engines
manufactured in model year 2005 or 2006
that emit not more than--
(I) 2.5 grams per brake
horsepower-hour of non-methane
hydrocarbons and oxides of
nitrogen; and
(II) .01 grams per brake
horsepower-hour of particulate
matter; or
(ii) clean school buses with
engines manufactured in model year 2007
or thereafter that satisfy regulatory
requirements established by the
Administrator for emissions of oxides
of nitrogen and particulate matter from
school buses manufactured in that model
year.
(6) Ultra low sulfur diesel fuel.--
(A) In general.--In the case of a grant
recipient receiving a grant for the acquisition
of ultra-low sulfur diesel fuel school buses
with engines manufactured in model year 2005 or
2006, the grant recipient shall provide, to the
satisfaction of the Administrator--
(i) documentation that diesel fuel
containing sulfur at not more than 15
parts per million is available for
carrying out the purposes of the grant;
and
(ii) a commitment by the applicant
to use that fuel in carrying out the
purposes of the grant.
(7) Deployment and distribution.--The Administrator
shall, to the maximum extent practicable--
(A) achieve nationwide deployment of clean
school buses through the program under this
section; and
(B) ensure a broad geographic distribution
of grant awards, with no State receiving more
than 10 percent of the grant funding made
available under this section during a fiscal
year.
(8) Annual report.--
(A) In general.--Not later than January 31
of each year, the Administrator shall submit to
Congress a report that--
(i) evaluates the implementation of
this section; and
(ii) describes--
(I) the total number of
grant applications received;
(II) the number and types
of alternative fuel school
buses, ultra-low sulfur diesel
fuel school buses, and
retrofitted buses requested in
grant applications;
(III) grants awarded and
the criteria used to select the
grant recipients;
(IV) certified engine
emission levels of all buses
purchased or retrofitted under
this section;
(V) an evaluation of the
in-use emission level of buses
purchased or retrofitted under
this section; and
(VI) any other information
the Administrator considers
appropriate.
(c) Education.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Administrator shall
develop an education outreach program to promote and
explain the grant program.
(2) Coordination with stakeholders.--The outreach
program shall be designed and conducted in conjunction
with national school bus transportation associations
and other stakeholders.
(3) Components.--The outreach program shall--
(A) inform potential grant recipients on
the process of applying for grants;
(B) describe the available technologies and
the benefits of the technologies;
(C) explain the benefits of participating
in the grant program; and
(D) include, as appropriate, information
from the annual report required under
subsection (b)(8).
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended--
(1) $55,000,000 for each of fiscal years 2006 and
2007; and
(2) such sums as are necessary for each of fiscal
years 2008, 2009, and 2010.
SEC. 742. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION PROGRAM.
(a) Establishment.--The Administrator, in consultation with
the Secretary, shall establish a program for awarding grants on
a competitive basis to public agencies and entities for fleet
modernization programs including installation of retrofit
technologies for diesel trucks.
(b) Eligible Recipients.--A grant shall be awarded under
this section only to a State or local government or an agency
or instrumentality of a State or local government or of two or
more State or local governments who will allocate funds, with
preference to ports and other major hauling operations.
(c) Awards.--
(1) In general.--The Administrator shall seek, to
the maximum extent practicable, to ensure a broad
geographic distribution of grants under this section.
(2) Preferences.--In making awards of grants under
this section, the Administrator shall give preference
to proposals that--
(A) will achieve the greatest reductions in
emissions of nonmethane hydrocarbons, oxides of
nitrogen, and/or particulate matter per
proposal or per truck; or
(B) involve the use of Environmental
Protection Agency or California Air Resources
Board verified emissions control retrofit
technology on diesel trucks that operate solely
on ultra-low sulfur diesel fuel after September
2006.
(d) Conditions of Grant.--A grant shall be provided under
this section on the conditions that--
(1) trucks which are replacing scrapped trucks and
on which retrofit emissions-control technology are to
be demonstrated--
(A) will operate on ultra-low sulfur diesel
fuel where such fuel is reasonably available or
required for sale by State or local law or
regulation;
(B) were manufactured in model year 1998
and before; and
(C) will be used for the transportation of
cargo goods especially in port areas or used in
goods movement and major hauling operations;
(2) grant funds will be used for the purchase of
emission control retrofit technology, including State
taxes and contract fees; and
(3) grant recipients will provide at least 50
percent of the total cost of the retrofit, including
the purchase of emission control retrofit technology
and all necessary labor for installation of the
retrofit, from any source other than this section.
(e) Verification.--Not later than 90 days after the date of
enactment of this Act, the Administrator shall publish in the
Federal Register procedures to--
(1) make grants pursuant to this section;
(2) verify that trucks powered by ultra-low sulfur
diesel fuel on which retrofit emissions-control
technology are to be demonstrated will operate on
diesel fuel containing not more than 15 parts per
million of sulfur after September 2006; and
(3) verify that grants are administered in
accordance with this section.
(f) Authorization of Appropriations.--There are authorized
to be appropriated to the Administrator to carry out this
section, to remain available until expended the following sums:
(1) $20,000,000 for fiscal year 2006.
(2) $35,000,000 for fiscal year 2007.
(3) $45,000,000 for fiscal year 2008.
(4) Such sums as are necessary for each of fiscal
years 2009 and 2010.
SEC. 743. FUEL CELL SCHOOL BUSES.
(a) Establishment.--The Secretary shall establish a program
for entering into cooperative agreements--
(1) with private sector fuel cell bus developers
for the development of fuel cell-powered school buses;
and
(2) subsequently, with not less than 2 units of
local government using natural gas-powered school buses
and such private sector fuel cell bus developers to
demonstrate the use of fuel cell-powered school buses.
(b) Cost Sharing.--The non-Federal contribution for
activities funded under this section shall be not less than--
(1) 20 percent for fuel infrastructure development
activities; and
(2) 50 percent for demonstration activities and for
development activities not described in paragraph (1).
(c) Reports to Congress.--Not later than 3 years after the
date of enactment of this Act, the Secretary shall transmit to
Congress a report that--
(1) evaluates the process of converting natural gas
infrastructure to accommodate fuel cell-powered school
buses; and
(2) assesses the results of the development and
demonstration program under this section.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section
$25,000,000 for the period of fiscal years 2006 through 2009.
Subtitle D--Miscellaneous
SEC. 751. RAILROAD EFFICIENCY.
(a) Establishment.--The Secretary shall (in cooperation
with the Secretary of Transportation and the Administrator of
the Environmental Protection Agency) establish a cost-shared,
public-private research partnership involving the Federal
Government, railroad carriers, locomotive manufacturers and
equipment suppliers, and the Association of American Railroads,
to develop and demonstrate railroad locomotive technologies
that increase fuel economy, reduce emissions, and lower costs
of operation.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out this section--
(1) $15,000,000 for fiscal year 2006;
(2) $20,000,000 for fiscal year 2007; and
(3) $30,000,000 for fiscal year 2008.
SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Administrator of the Environmental
Protection Agency shall submit to Congress a report on the
experience of the Administrator with the trading of mobile
source emission reduction credits for use by owners and
operators of stationary source emission sources to meet
emission offset requirements within a nonattainment area.
(b) Contents.--The report shall describe--
(1) projects approved by the Administrator that
include the trading of mobile source emission reduction
credits for use by stationary sources in complying with
offset requirements, including a description of--
(A) project and stationary sources
location;
(B) volumes of emissions offset and traded;
(C) the sources of mobile emission
reduction credits; and
(D) if available, the cost of the credits;
(2) the significant issues identified by the
Administrator in consideration and approval of trading
in the projects;
(3) the requirements for monitoring and assessing
the air quality benefits of any approved project;
(4) the statutory authority on which the
Administrator has based approval of the projects;
(5) an evaluation of how the resolution of issues
in approved projects could be used in other projects
and whether the emission reduction credits may be
considered to be additional in relation to other
requirements;
(6) the potential, for attainment purposes, of
emission reduction credits relating to transit and land
use policies; and
(7) any other issues that the Administrator
considers relevant to the trading and generation of
mobile source emission reduction credits for use by
stationary sources or for other purposes.
SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS.
(a) In General.--Not later than 60 days after the date of
enactment of this Act, the Administrator of the Federal
Aviation Administration and the Administrator of the
Environmental Protection Agency shall jointly initiate a study
to identify--
(1) the impact of aircraft emissions on air quality
in nonattainment areas;
(2) ways to promote fuel conservation measures for
aviation to enhance fuel efficiency and reduce
emissions; and
(3) opportunities to reduce air traffic
inefficiencies that increase fuel burn and emissions.
(b) Focus.--The study under subsection (a) shall focus on
how air traffic management inefficiencies, such as aircraft
idling at airports, result in unnecessary fuel burn and air
emissions.
(c) Report.--Not later than 1 year after the date of the
initiation of the study under subsection (a), the Administrator
of the Federal Aviation Administration and the Administrator of
the Environmental Protection Agency shall jointly submit to the
Committee on Energy and Commerce and the Committee on
Transportation and Infrastructure of the House of
Representatives and the Committee on Environment and Public
Works and the Committee on Commerce, Science, and
Transportation of the Senate a report that--
(1) describes the results of the study; and
(2) includes any recommendations on ways in which
unnecessary fuel use and emissions affecting air
quality may be reduced--
(A) without adversely affecting safety and
security and increasing individual aircraft
noise; and
(B) while taking into account all aircraft
emissions and the impact of those emissions on
the human health.
(d) Risk Assessments.--Any assessment of risk to human
health and the environment prepared by the Administrator of the
Federal Aviation Administration or the Administrator of the
Environmental Protection Agency to support the report in this
section shall be based on sound and objective scientific
practices, shall consider the best available science, and shall
present the weight of the scientific evidence concerning such
risks.
SEC. 754. DIESEL FUELED VEHICLES.
(a) Definition of Tier 2 Emission Standards.--In this
section, the term ``tier 2 emission standards'' means the motor
vehicle emission standards that apply to passenger cars, light
trucks, and larger passenger vehicles manufactured after the
2003 model year, as issued on February 10, 2000, by the
Administrator of the Environmental Protection Agency under
sections 202 and 211 of the Clean Air Act (42 U.S.C. 7521,
7545).
(b) Diesel Combustion and After-Treatment Technologies.--
The Secretary shall accelerate efforts to improve diesel
combustion and after-treatment technologies for use in diesel
fueled motor vehicles.
(c) Goals.--The Secretary shall carry out subsection (b)
with a view toward achieving the following goals:
(1) Developing and demonstrating diesel
technologies that, not later than 2010, meet the
following standards:
(A) Tier 2 emission standards.
(B) The heavy-duty emissions standards of
2007 that are applicable to heavy-duty vehicles
under regulations issued by the Administrator
of the Environmental Protection Agency as of
the date of enactment of this Act.
(2) Developing the next generation of low-emission,
high efficiency diesel engine technologies, including
homogeneous charge compression ignition technology.
SEC. 755. CONSERVE BY BICYCLING PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``program'' means the
Conserve by Bicycling Program established by subsection
(b).
(2) Secretary.--The term ``Secretary'' means the
Secretary of Transportation.
(b) Establishment.--There is established within the
Department of Transportation a program to be known as the
``Conserve by Bicycling Program''.
(c) Projects.--
(1) In general.--In carrying out the program, the
Secretary shall establish not more than 10 pilot
projects that are--
(A) dispersed geographically throughout the
United States; and
(B) designed to conserve energy resources
by encouraging the use of bicycles in place of
motor vehicles.
(2) Requirements.--A pilot project described in
paragraph (1) shall--
(A) use education and marketing to convert
motor vehicle trips to bicycle trips;
(B) document project results and energy
savings (in estimated units of energy
conserved);
(C) facilitate partnerships among
interested parties in at least 2 of the fields
of--
(i) transportation;
(ii) law enforcement;
(iii) education;
(iv) public health;
(v) environment; and
(vi) energy;
(D) maximize bicycle facility investments;
(E) demonstrate methods that may be used in
other regions of the United States; and
(F) facilitate the continuation of ongoing
programs that are sustained by local resources.
(3) Cost sharing.--At least 20 percent of the cost
of each pilot project described in paragraph (1) shall
be provided from non-Federal sources.
(d) Energy and Bicycling Research Study.--
(1) In general.--Not later than 2 years after the
date of enactment of this Act, the Secretary shall
enter into a contract with the National Academy of
Sciences for, and the National Academy of Sciences
shall conduct and submit to Congress a report on, a
study on the feasibility of converting motor vehicle
trips to bicycle trips.
(2) Components.--The study shall--
(A) document the results or progress of the
pilot projects under subsection (c);
(B) determine the type and duration of
motor vehicle trips that people in the United
States may feasibly make by bicycle, taking
into consideration factors such as--
(i) weather;
(ii) land use and traffic patterns;
(iii) the carrying capacity of
bicycles; and
(iv) bicycle infrastructure;
(C) determine any energy savings that would
result from the conversion of motor vehicle
trips to bicycle trips;
(D) include a cost-benefit analysis of
bicycle infrastructure investments; and
(E) include a description of any factors
that would encourage more motor vehicle trips
to be replaced with bicycle trips.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to the Secretary to carry out this section
$6,200,000, to remain available until expended, of which--
(1) $5,150,000 shall be used to carry out pilot
projects described in subsection (c);
(2) $300,000 shall be used by the Secretary to
coordinate, publicize, and disseminate the results of
the program; and
(3) $750,000 shall be used to carry out subsection
(d).
SEC. 756. REDUCTION OF ENGINE IDLING.
(a) Definitions.--In this section:
(1) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(2) Advanced truck stop electrification system.--
The term ``advanced truck stop electrification system''
means a stationary system that delivers heat, air
conditioning, electricity, or communications, and is
capable of providing verifiable and auditable evidence
of use of those services, to a heavy-duty vehicle and
any occupants of the heavy-duty vehicle with or without
relying on components mounted onboard the heavy-duty
vehicle for delivery of those services.
(3) Auxiliary power unit.--The term ``auxiliary
power unit'' means an integrated system that--
(A) provides heat, air conditioning, engine
warming, or electricity to components on a
heavy-duty vehicle; and
(B) is certified by the Administrator under
part 89 of title 40, Code of Federal
Regulations (or any successor regulation), as
meeting applicable emission standards.
(4) Heavy-duty vehicle.--The term ``heavy-duty
vehicle'' means a vehicle that--
(A) has a gross vehicle weight rating
greater than 8,500 pounds; and
(B) is powered by a diesel engine.
(5) Idle reduction technology.--The term ``idle
reduction technology'' means an advanced truck stop
electrification system, auxiliary power unit, or other
technology that--
(A) is used to reduce long-duration idling;
and
(B) allows for the main drive engine or
auxiliary refrigeration engine to be shut down.
(6) Energy conservation technology.--the term
``energy conservation technology'' means any device,
system of devices, or equipment that improves the fuel
economy.
(7) Long-duration idling.--
(A) In general.--The term ``long-duration
idling'' means the operation of a main drive
engine or auxiliary refrigeration engine, for a
period greater than 15 consecutive minutes, at
a time at which the main drive engine is not
engaged in gear.
(B) Exclusions.--The term ``long-duration
idling'' does not include the operation of a
main drive engine or auxiliary refrigeration
engine during a routine stoppage associated
with traffic movement or congestion.
(b) Idle Reduction Technology Benefits, Programs, and
Studies.--
(1) In general.--Not later than 90 days after the
date of enactment of this Act, the Administrator
shall--
(A)(i) commence a review of the mobile
source air emission models of the Environmental
Protection Agency used under the Clean Air Act
(42 U.S.C. 7401 et seq.) to determine whether
the models accurately reflect the emissions
resulting from long-duration idling of heavy-
duty vehicles and other vehicles and engines;
and
(ii) update those models as the
Administrator determines to be appropriate; and
(B)(i) commence a review of the emission
reductions achieved by the use of idle
reduction technology; and
(ii) complete such revisions of the
regulations and guidance of the Environmental
Protection Agency as the Administrator
determines to be appropriate.
(2) Deadline for completion.--Not later than 180
days after the date of enactment of this Act, the
Administrator shall--
(A) complete the reviews under
subparagraphs (A)(i) and (B)(i) of paragraph
(1); and
(B) prepare and make publicly available 1
or more reports on the results of the reviews.
(3) Discretionary inclusions.--The reviews under
subparagraphs (A)(i) and (B)(i) of paragraph (1) and
the reports under paragraph (2)(B) may address the
potential fuel savings resulting from use of idle
reduction technology.
(4) Idle reduction and energy conservation
deployment program.--
(A) Establishment.--
(i) In general.--Not later than 90
days after the date of enactment of
this Act, the Administrator, in
consultation with the Secretary of
Transportation shall, through the
Environmental Protection Agency's
SmartWay Transport Partnership,
establish a program to support
deployment of idle reduction and energy
conservation technologies.
(ii) Priority.--The Administrator
shall give priority to the deployment
of idle reduction and energy
conservation technologies based on the
costs and beneficial effects on air
quality and ability to lessen the
emission of criteria air pollutants.
(B) Funding.--
(i) Authorization of
appropriations.--There are authorized
to be appropriated to the Administrator
to carry out subparagraph (A) for the
purpose of reducing extended idling
from heavy-duty vehicles $19,500,000
for fiscal year 2006, $30,000,000 for
fiscal year 2007, and $45,000,000 for
fiscal year 2008.
(ii) Locomotives.--There are
authorized to be appropriated to the
administrator to carry out subparagraph
(A) for the purpose of reducing
extended idling from locomotives
$10,000,000 for fiscal year 2006,
$15,000,000 for fiscal year 2007, and
$20,000,000 for fiscal year 2008.
(iii) Cost sharing.--Subject to
clause (iv), the Administrator shall
require at least 50 percent of the
costs directly and specifically related
to any project under this section to be
provided from non-Federal sources.
(iv) Necessary and appropriate
reductions.--The Administrator may
reduce the non-Federal requirement
under clause (iii) if the Administrator
determines that the reduction is
necessary and appropriate to meet the
objectives of this section.
(5) Idling location study.--
(A) In general.--Not later than 90 days
after the date of enactment of this Act, the
Administrator, in consultation with the
Secretary of Transportation, shall commence a
study to analyze all locations at which heavy-
duty vehicles stop for long-duration idling,
including--
(i) truck stops;
(ii) rest areas;
(iii) border crossings;
(iv) ports;
(v) transfer facilities; and
(vi) private terminals.
(B) Deadline for completion.--Not later
than 180 days after the date of enactment of
this Act, the Administrator shall--
(i) complete the study under
subparagraph (A); and
(ii) prepare and make publicly
available 1 or more reports of the
results of the study.
(c) Vehicle Weight Exemption.--Section 127(a) of title 23,
United States Code, is amended--
(1) by designating the first through eleventh
sentences as paragraphs (1) through (11), respectively;
and
(2) by adding at the end the following:
``(12) Heavy duty vehicles.--
``(A) In general.--Subject to subparagraphs
(B) and (C), in order to promote reduction of
fuel use and emissions because of engine
idling, the maximum gross vehicle weight limit
and the axle weight limit for any heavy-duty
vehicle equipped with an idle reduction
technology shall be increased by a quantity
necessary to compensate for the additional
weight of the idle reduction system.
``(B) Maximum weight increase.--The weight
increase under subparagraph (A) shall be not
greater than 400 pounds.
``(C) Proof.--On request by a regulatory
agency or law enforcement agency, the vehicle
operator shall provide proof (through
demonstration or certification) that--
``(i) the idle reduction technology
is fully functional at all times; and
``(ii) the 400-pound gross weight
increase is not used for any purpose
other than the use of idle reduction
technology described in subparagraph
(A).''.
(d) Report.--Not later than 60 days after the date on which
funds are initially awarded under this section, and on an
annual basis thereafter, the Administrator shall submit to
Congress a report containing--
(1) an identification of the grant recipients, a
description of the projects to be funded and the amount
of funding provided; and
(2) an identification of all other applicants that
submitted applications under the program.
SEC. 757. BIODIESEL ENGINE TESTING PROGRAM.
(a) In General.--Not later that 180 days after the date of
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 program shall provide for testing to
determine the impact of biodiesel from different sources on
current and future emission control technologies, with emphasis
on--
(1) the impact of biodiesel on emissions warranty,
in-use liability, and antitampering 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 of this Act, the Secretary shall provide an interim
report to Congress on the findings of the program, 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) Authorization of Appropriations.--There are authorized
to be appropriated $5,000,000 for each of fiscal years 2006
through 2010 to carry out this section.
(e) Definition.--For purposes of this section, 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 (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. 758. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR AIRCRAFT.
(a) Ultra-Efficient Engine Technology Partnership.--The
Secretary shall enter into a cooperative agreement with the
National Aeronautics and Space Administration for the
development of ultra-efficient engine technology for aircraft.
(b) Performance Objective.--The Secretary shall establish
the following performance objectives for the program set forth
in subsection (a):
(1) A fuel efficiency increase of at least 10
percent.
(2) A reduction in the impact of landing and
takeoff nitrogen oxides emissions on local air quality
of 70 percent.
(3) Exploring advanced concepts, alternate
propulsion, and power configurations, including hybrid
fuel cell powered systems.
(4) Exploring the use of alternate fuel in
conventional or nonconventional turbine-based systems.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section $50,000,000 for each of the fiscal years 2006, 2007,
2008, 2009, and 2010.
SEC. 759. FUEL ECONOMY INCENTIVE REQUIREMENTS.
Section 32905 of title 49, United States Code, is amended
by adding the following new subsection at the end thereof:
``(h) Fuel Economy Incentive Requirements.--In order for
any model of dual fueled automobile to be eligible to receive
the fuel economy incentives included in section 32906(a) and
(b), a label shall be attached to the fuel compartment of each
dual fueled automobile of that model, notifying that the
vehicle can be operated on an alternative fuel and on gasoline
or diesel, with the form of alternative fuel stated on the
notice. This requirement applies to dual fueled automobiles
manufactured on or after September 1, 2006.''.
Subtitle E--Automobile Efficiency
SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND
ENFORCEMENT OF FUEL ECONOMY STANDARDS.
In addition to any other funds authorized by law, there are
authorized to be appropriated to the National Highway Traffic
Safety Administration to carry out its obligations with respect
to average fuel economy standards $3,500,000 for each of the
fiscal years 2006 through 2010.
SEC. 772. EXTENSION OF MAXIMUM FUEL ECONOMY INCREASE FOR ALTERNATIVE
FUELED VEHICLES.
(a) Manufacturing Incentives.--Section 32905 of title 49,
United States Code, is amended--
(1) in each of subsections (b) and (d), by striking
``1993-2004'' and inserting ``1993-2010'';
(2) in subsection (f), by striking ``2001'' and
inserting ``2007''; and
(3) in subsection (f)(1), by striking ``2004'' and
inserting ``2010''.
(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-
2010''; and
(2) in subparagraph (B), by striking ``the model
years 2005-2008'' and inserting ``model years 2011-
2014''.
SEC. 773. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL FOR
AUTOMOBILES.
(a) In General.--Not later than 30 days after the date of
the enactment of this Act, the Administrator of the National
Highway Traffic Safety Administration shall initiate a study of
the feasibility and effects of reducing by model year 2014, by
a significant percentage, the amount of fuel consumed by
automobiles.
(b) Subjects of Study.--The study under this section shall
include--
(1) examination of, and recommendation of
alternatives to, the policy under current Federal law
of establishing average fuel economy standards for
automobiles and requiring each automobile manufacturer
to comply with average fuel economy standards that
apply to the automobiles it manufactures;
(2) examination of how automobile manufacturers
could contribute toward achieving the reduction
referred to in subsection (a);
(3) examination of the potential of fuel cell
technology in motor vehicles in order to determine the
extent to which such technology may contribute to
achieving the reduction referred to in subsection (a);
and
(4) examination of the effects of the reduction
referred to in subsection (a) on--
(A) gasoline supplies;
(B) the automobile industry, including
sales of automobiles manufactured in the United
States;
(C) motor vehicle safety; and
(D) air quality.
(c) Report.--The Administrator shall submit to Congress a
report on the findings, conclusion, and recommendations of the
study under this section by not later than 1 year after the
date of the enactment of this Act.
SEC. 774. UPDATE TESTING PROCEDURES.
The Administrator of the Environmental Protection Agency
shall update or revise the adjustment factors in sections
600.209-85 and 600.209-95, of the Code of Federal Regulations,
CFR Part 600 (1995) Fuel Economy Regulations for 1977 and Later
Model Year Automobiles to take into consideration higher speed
limits, faster acceleration rates, variations in temperature,
use of air conditioning, shorter city test cycle lengths,
current reference fuels, and the use of other fuel depleting
features.
Subtitle F--Federal and State Procurement
SEC. 781. DEFINITIONS.
In this subtitle:
(1) Fuel cell.--The term ``fuel cell'' means a
device that directly converts the chemical energy of a
fuel and an oxidant into electricity by electrochemical
processes occurring at separate electrodes in the
device.
(2) Light-duty or heavy-duty vehicle fleet.--The
term ``light-duty or heavy-duty vehicle fleet'' does
not include any vehicle designed or procured for combat
or combat-related missions.
(3) Stationary; portable.--The terms ``stationary''
and ``portable'', when used in reference to a fuel
cell, include--
(A) continuous electric power; and
(B) backup electric power.
(4) Task force.--The term ``Task Force'' means the
Hydrogen and Fuel Cell Technical Task Force established
under section 806 of this Act.
(5) Technical advisory committee.--The term
``Technical Advisory Committee'' means the independent
Technical Advisory Committee selected under section 807
of this Act.
SEC. 782. FEDERAL AND STATE PROCUREMENT OF FUEL CELL VEHICLES AND
HYDROGEN ENERGY SYSTEMS.
(a) Purposes.--The purposes of this section are--
(1) to stimulate acceptance by the market of fuel
cell vehicles and hydrogen energy systems;
(2) to support development of technologies relating
to fuel cell vehicles, public refueling stations, and
hydrogen energy systems; and
(3) to require the Federal government, which is the
largest single user of energy in the United States, to
adopt those technologies as soon as practicable after
the technologies are developed, in conjunction with
private industry partners.
(b) Federal Leases and Purchases.--
(1) Requirement.--
(A) In general.--Not later than January 1,
2010, the head of any Federal agency that uses
a light-duty or heavy-duty vehicle fleet shall
lease or purchase fuel cell vehicles and
hydrogen energy systems to meet any applicable
energy savings goal described in subsection
(c).
(B) Learning demonstration vehicles.--The
Secretary may lease or purchase appropriate
vehicles developed under subsections (a)(10)
and (b)(1)(A) of section 808 to meet the
requirement in subparagraph (A).
(2) Costs of leases and purchases.--
(A) In general.--The Secretary, in
cooperation with the Task Force and the
Technical Advisory Committee, shall pay to
Federal agencies (or share the cost under
interagency agreements) the difference in cost
between--
(i) the cost to the agencies of
leasing or purchasing fuel cell
vehicles and hydrogen energy systems
under paragraph (1); and
(ii) the cost to the agencies of a
feasible alternative to leasing or
purchasing fuel cell vehicles and
hydrogen energy systems, as determined
by the Secretary.
(B) Competitive costs and management
structures.--In carrying out subparagraph (A),
the Secretary, in consultation with the agency,
may use the General Services Administration or
any commercial vendor to ensure--
(i) a cost-effective purchase of a
fuel cell vehicle or hydrogen energy
system; or
(ii) a cost-effective management
structure of the lease of a fuel cell
vehicle or hydrogen energy system.
(3) Exception.--
(A) In general.--If the Secretary
determines that the head of an agency described
in paragraph (1) cannot find an appropriately
efficient and reliable fuel cell vehicle or
hydrogen energy system in accordance with
paragraph (1), that agency shall be excepted
from compliance with paragraph (1).
(B) Consideration.--In making a
determination under subparagraph (A), the
Secretary shall consider--
(i) the needs of the agency; and
(ii) an evaluation performed by--
(I) the Task Force; or
(II) the Technical Advisory
Committee.
(c) Energy Savings Goals.--
(1) In general.--
(A) Regulations.--Not later than December
31, 2006, the Secretary shall--
(i) in cooperation with the Task
Force, promulgate regulations for the
period of 2008 through 2010 that extend
and augment energy savings goals for
each Federal agency, in accordance with
any Executive order issued after March
2000; and
(ii) promulgate regulations to
expand the minimum Federal fleet
requirement and credit allowances for
fuel cell vehicle systems under section
303 of the Energy Policy Act of 1992
(42 U.S.C. 13212).
(B) Review, evaluation, and new
regulations.--Not later than December 31, 2010,
the Secretary shall--
(i) review the regulations
promulgated under subparagraph (A);
(ii) evaluate any progress made
toward achieving energy savings by
Federal agencies; and
(iii) promulgate new regulations
for the period of 2011 through 2015 to
achieve additional energy savings by
Federal agencies relating to technical
and cost-performance standards.
(2) Offsetting energy savings goals.--An agency
that leases or purchases a fuel cell vehicle or
hydrogen energy system in accordance with subsection
(b)(1) may use that lease or purchase to count toward
an energy savings goal of the agency.
(d) Cooperative Program With State Agencies.--
(1) In general.--The Secretary may establish a
cooperative program with State agencies managing motor
vehicle fleets to encourage purchase of fuel cell
vehicles by the agencies.
(2) Incentives.--In carrying out the cooperative
program, the Secretary may offer incentive payments to
a State agency to assist with the cost of planning,
differential purchases, and administration.
(e) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section--
(1) $15,000,000 for fiscal year 2008;
(2) $25,000,000 for fiscal year 2009;
(3) $65,000,000 for fiscal year 2010; and
(4) such sums as are necessary for each of fiscal
years 2011 through 2015.
SEC. 783. FEDERAL PROCUREMENT OF STATIONARY, PORTABLE, AND MICRO FUEL
CELLS.
(a) Purposes.--The purposes of this section are--
(1) to stimulate acceptance by the market of
stationary, portable, and micro fuel cells; and
(2) to support development of technologies relating
to stationary, portable, and micro fuel cells.
(b) Federal Leases and Purchases.--
(1) In general.--Not later than January 1, 2006,
the head of any Federal agency that uses electrical
power from stationary, portable, or microportable
devices shall lease or purchase a stationary, portable,
or micro fuel cell to meet any applicable energy
savings goal described in subsection (c).
(2) Costs of leases and purchases.--
(A) In general.--The Secretary, in
cooperation with the Task Force and the
Technical Advisory Committee, shall pay the
cost to Federal agencies (or share the cost
under interagency agreements) of leasing or
purchasing stationary, portable, and micro fuel
cells under paragraph (1).
(B) Competitive costs and management
structures.--In carrying out subparagraph (A),
the Secretary, in consultation with the agency,
may use the General Services Administration or
any commercial vendor to ensure--
(i) a cost-effective purchase of a
stationary, portable, or micro fuel
cell; or
(ii) a cost-effective management
structure of the lease of a stationary,
portable, or micro fuel cell.
(3) Exception.--
(A) In general.--If the Secretary
determines that the head of an agency described
in paragraph (1) cannot find an appropriately
efficient and reliable stationary, portable, or
micro fuel cell in accordance with paragraph
(1), that agency shall be excepted from
compliance with paragraph (1).
(B) Consideration.--In making a
determination under subparagraph (A), the
Secretary shall consider--
(i) the needs of the agency; and
(ii) an evaluation performed by--
(I) the Task Force; or
(II) the Technical Advisory
Committee of the Task Force.
(c) Energy Savings Goals.--An agency that leases or
purchases a stationary, portable, or micro fuel cell in
accordance with subsection (b)(1) may use that lease or
purchase to count toward an energy savings goal described in
section 808 of this Act that is applicable to the agency.
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section--
(1) $20,000,000 for fiscal year 2006;
(2) $50,000,000 for fiscal year 2007;
(3) $75,000,000 for fiscal year 2008;
(4) $100,000,000 for fiscal year 2009;
(5) $100,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2015.
Subtitle G--Diesel Emissions Reduction
SEC. 791. DEFINITIONS.
In this subtitle:
(1) Administrator.--The term ``Administrator''
means the Administrator of the Environmental Protection
Agency.
(2) Certified engine configuration.--The term
``certified engine configuration'' means a new,
rebuilt, or remanufactured engine configuration--
(A) that has been certified or verified
by--
(i) the Administrator; or
(ii) the California Air Resources
Board;
(B) that meets or is rebuilt or
remanufactured to a more stringent set of
engine emission standards, as determined by the
Administrator; and
(C) in the case of a certified engine
configuration involving the replacement of an
existing engine or vehicle, an engine
configuration that replaced an engine that
was--
(i) removed from the vehicle; and
(ii) returned to the supplier for
remanufacturing to a more stringent set
of engine emissions standards or for
scrappage.
(3) Eligible entity.--The term ``eligible entity''
means--
(A) a regional, State, local, or tribal
agency or port authority with jurisdiction over
transportation or air quality; and
(B) a nonprofit organization or institution
that--
(i) represents or provides
pollution reduction or educational
services to persons or organizations
that own or operate diesel fleets; or
(ii) has, as its principal purpose,
the promotion of transportation or air
quality.
(4) Emerging technology.--The term ``emerging
technology'' means a technology that is not certified
or verified by the Administrator or the California Air
Resources Board but for which an approvable application
and test plan has been submitted for verification to
the Administrator or the California Air Resources
Board.
(5) Fleet.--The term ``fleet'' means 1 or more
diesel vehicles or mobile or stationary diesel engines.
(6) Heavy-duty truck.--The term ``heavy-duty
truck'' has the meaning given the term ``heavy duty
vehicle'' in section 202 of the Clean Air Act (42
U.S.C. 7521).
(7) Medium-duty truck.--The term ``medium-duty
truck'' has such meaning as shall be determined by the
Administrator, by regulation.
(8) Verified technology.--The term ``verified
technology'' means a pollution control technology,
including a retrofit technology, advanced truckstop
electrification system, or auxiliary power unit, that
has been verified by--
(A) the Administrator; or
(B) the California Air Resources Board.
SEC. 792. NATIONAL GRANT AND LOAN PROGRAMS.
(a) In General.--The Administrator shall use 70 percent of
the funds made available to carry out this subtitle for each
fiscal year to provide grants and low-cost revolving loans, as
determined by the Administrator, on a competitive basis, to
eligible entities to achieve significant reductions in diesel
emissions in terms of--
(1) tons of pollution produced; and
(2) diesel emissions exposure, particularly from
fleets operating in areas designated by the
Administrator as poor air quality areas.
(b) Distribution.--
(1) In general.--The Administrator shall distribute
funds made available for a fiscal year under this
subtitle in accordance with this section.
(2) Fleets.--The Administrator shall provide not
less than 50 percent of funds available for a fiscal
year under this section to eligible entities for the
benefit of public fleets.
(3) Engine configurations and technologies.--
(A) Certified engine configurations and
verified technologies.--The Administrator shall
provide not less than 90 percent of funds
available for a fiscal year under this section
to eligible entities for projects using--
(i) a certified engine
configuration; or
(ii) a verified technology.
(B) Emerging technologies.--
(i) In general.--The Administrator
shall provide not more than 10 percent
of funds available for a fiscal year
under this section to eligible entities
for the development and
commercialization of emerging
technologies.
(ii) Application and test plan.--To
receive funds under clause (i), a
manufacturer, in consultation with an
eligible entity, shall submit for
verification to the Administrator or
the California Air Resources Board a
test plan for the emerging technology,
together with the application under
subsection (c).
(c) Applications.--
(1) In general.--To receive a grant or loan under
this section, an eligible entity shall submit to the
Administrator an application at a time, in a manner,
and including such information as the Administrator may
require.
(2) Inclusions.--An application under this
subsection shall include--
(A) a description of the air quality of the
area served by the eligible entity;
(B) the quantity of air pollution produced
by the diesel fleets in the area served by the
eligible entity;
(C) a description of the project proposed
by the eligible entity, including--
(i) any certified engine
configuration, verified technology, or
emerging technology to be used or
funded by the eligible entity; and
(ii) the means by which the project
will achieve a significant reduction in
diesel emissions;
(D) an evaluation (using methodology
approved by the Administrator or the National
Academy of Sciences) of the quantifiable and
unquantifiable benefits of the emissions
reductions of the proposed project;
(E) an estimate of the cost of the proposed
project;
(F) a description of the age and expected
lifetime control of the equipment used or
funded by the eligible entity;
(G) a description of the diesel fuel
available in the areas to be served by the
eligible entity, including the sulfur content
of the fuel; and
(H) provisions for the monitoring and
verification of the project.
(3) Priority.--In providing a grant or loan under
this section, the Administrator shall give priority to
proposed projects that, as determined by the
Administrator--
(A) maximize public health benefits;
(B) are the most cost-effective;
(C) serve areas--
(i) with the highest population
density;
(ii) that are poor air quality
areas, including areas identified by
the Administrator as--
(I) in nonattainment or
maintenance of national ambient
air quality standards for a
criteria pollutant;
(II) Federal Class I areas;
or
(III) areas with toxic air
pollutant concerns;
(iii) that receive a
disproportionate quantity of air
pollution from a diesel fleets,
including truckstops, ports, rail
yards, terminals, and distribution
centers; or
(iv) that use a community-based
multistakeholder collaborative process
to reduce toxic emissions;
(D) include a certified engine
configuration, verified technology, or emerging
technology that has a long expected useful
life;
(E) will maximize the useful life of any
certified engine configuration, verified
technology, or emerging technology used or
funded by the eligible entity;
(F) conserve diesel fuel; and
(G) use diesel fuel with a sulfur content
of less than or equal to 15 parts per million,
as the Administrator determines to be
appropriate.
(d) Use of Funds.--
(1) In general.--An eligible entity may use a grant
or loan provided under this section to fund the costs
of--
(A) a retrofit technology (including any
incremental costs of a repowered or new diesel
engine) that significantly reduces emissions
through development and implementation of a
certified engine configuration, verified
technology, or emerging technology for--
(i) a bus;
(ii) a medium-duty truck or a
heavy-duty truck;
(iii) a marine engine;
(iv) a locomotive; or
(v) a nonroad engine or vehicle
used in--
(I) construction;
(II) handling of cargo
(including at a port or
airport);
(III) agriculture;
(IV) mining; or
(V) energy production; or
(B) programs or projects to reduce long-
duration idling using verified technology
involving a vehicle or equipment described in
subparagraph (A).
(2) Regulatory programs.--
(A) In general.--Notwithstanding paragraph
(1), no grant or loan provided under this
section shall be used to fund the costs of
emissions reductions that are mandated under
Federal, State or local law.
(B) Mandated.--For purposes of subparagraph
(A), voluntary or elective emission reduction
measures shall not be considered ``mandated'',
regardless of whether the reductions are
included in the State implementation plan of a
State.
SEC. 793. STATE GRANT AND LOAN PROGRAMS.
(a) In General.--Subject to the availability of adequate
appropriations, the Administrator shall use 30 percent of the
funds made available for a fiscal year under this subtitle to
support grant and loan programs administered by States that are
designed to achieve significant reductions in diesel emissions.
(b) Applications.--The Administrator shall--
(1) provide to States guidance for use in applying
for grant or loan funds under this section, including
information regarding--
(A) the process and forms for applications;
(B) permissible uses of funds received; and
(C) the cost-effectiveness of various
emission reduction technologies eligible to be
carried out using funds provided under this
section; and
(2) establish, for applications described in
paragraph (1)--
(A) an annual deadline for submission of
the applications;
(B) a process by which the Administrator
shall approve or disapprove each application;
and
(C) a streamlined process by which a State
may renew an application described in paragraph
(1) for subsequent fiscal years.
(c) Allocation of Funds.--
(1) In general.--For each fiscal year, the
Administrator shall allocate among States for which
applications are approved by the Administrator under
subsection (b)(2)(B) funds made available to carry out
this section for the fiscal year.
(2) Allocation.--Using not more than 20 percent of
the funds made available to carry out this subtitle for
a fiscal year, the Administrator shall provide to each
State described in paragraph (1) for the fiscal year an
allocation of funds that is equal to--
(A) if each of the 50 States qualifies for
an allocation, an amount equal to 2 percent of
the funds made available to carry out this
section; or
(B) if fewer than 50 States qualifies for
an allocation, an amount equal to the amount
described in subparagraph (A), plus an
additional amount equal to the product obtained
by multiplying--
(i) the proportion that--
(I) the population of the
State; bears to
(II) the population of all
States described in paragraph
(1); by
(ii) the amount of funds remaining
after each State described in paragraph
(1) receives the 2-percent allocation
under this paragraph.
(3) State matching incentive.--
(A) In general.--If a State agrees to match
the allocation provided to the State under
paragraph (2) for a fiscal year, the
Administrator shall provide to the State for
the fiscal year an additional amount equal to
50 percent of the allocation of the State under
paragraph (2).
(B) Requirements.--A State--
(i) may not use funds received
under this subtitle to pay a matching
share required under this subsection;
and
(ii) shall not be required to
provide a matching share for any
additional amount received under
subparagraph (A).
(4) Unclaimed funds.--Any funds that are not
claimed by a State for a fiscal year under this
subsection shall be used to carry out section 792.
(d) Administration.--
(1) In general.--Subject to paragraphs (2) and (3)
and, to the extent practicable, the priority areas
listed in section 792(c)(3), a State shall use any
funds provided under this section to develop and
implement such grant and low-cost revolving loan
programs in the State as are appropriate to meet State
needs and goals relating to the reduction of diesel
emissions.
(2) Apportionment of funds.--The Governor of a
State that receives funding under this section may
determine the portion of funds to be provided as grants
or loans.
(3) Use of funds.--A grant or loan provided under
this section may be used for a project relating to--
(A) a certified engine configuration; or
(B) a verified technology.
SEC. 794. EVALUATION AND REPORT.
(a) In General.--Not later than 1 year after the date on
which funds are made available under this subtitle, and
biennially thereafter, the Administrator shall submit to
Congress a report evaluating the implementation of the programs
under this subtitle.
(b) Inclusions.--The report shall include a description
of--
(1) the total number of grant applications
received;
(2) each grant or loan made under this subtitle,
including the amount of the grant or loan;
(3) each project for which a grant or loan is
provided under this subtitle, including the criteria
used to select the grant or loan recipients;
(4) the actual and estimated air quality and diesel
fuel conservation benefits, cost-effectiveness, and
cost-benefits of the grant and loan programs under this
subtitle;
(5) the problems encountered by projects for which
a grant or loan is provided under this subtitle; and
(6) any other information the Administrator
considers to be appropriate.
SEC. 795. OUTREACH AND INCENTIVES.
(a) Definition of Eligible Technology.--In this section,
the term ``eligible technology'' means--
(1) a verified technology; or
(2) an emerging technology.
(b) Technology Transfer Program.--
(1) In general.--The Administrator shall establish
a program under which the Administrator--
(A) informs stakeholders of the benefits of
eligible technologies; and
(B) develops nonfinancial incentives to
promote the use of eligible technologies.
(2) Eligible stakeholders.--Eligible stakeholders
under this section include--
(A) equipment owners and operators;
(B) emission and pollution control
technology manufacturers;
(C) engine and equipment manufacturers;
(D) State and local officials responsible
for air quality management;
(E) community organizations; and
(F) public health, educational, and
environmental organizations.
(c) State Implementation Plans.--The Administrator shall
develop appropriate guidance to provide credit to a State for
emission reductions in the State created by the use of eligible
technologies through a State implementation plan under section
110 of the Clean Air Act (42 U.S.C. 7410).
(d) International Markets.--The Administrator, in
coordination with the Department of Commerce and industry
stakeholders, shall inform foreign countries with air quality
problems of the potential of technology developed or used in
the United States to provide emission reductions in those
countries.
SEC. 796. EFFECT OF SUBTITLE.
Nothing in this subtitle affects any authority under the
Clean Air Act (42 U.S.C. 7401 et seq.) in existence on the day
before the date of enactment of this Act.
SEC. 797. AUTHORIZATION OF APPROPRIATIONS.
There is authorized to be appropriated to carry out this
subtitle $200,000,000 for each of fiscal years 2007 through
2011, to remain available until expended.
TITLE VIII--HYDROGEN
SEC. 801. HYDROGEN AND FUEL CELL PROGRAM.
This title may be cited as the ``Spark M. Matsunaga
Hydrogen Act of 2005''.
SEC. 802. PURPOSES.
The purposes of this title are--
(1) to enable and promote comprehensive
development, demonstration, and commercialization of
hydrogen and fuel cell technology in partnership with
industry;
(2) to make critical public investments in building
strong links to private industry, institutions of
higher education, National Laboratories, and research
institutions to expand innovation and industrial
growth;
(3) to build a mature hydrogen economy that creates
fuel diversity in the massive transportation sector of
the United States;
(4) to sharply decrease the dependency of the
United States on imported oil, eliminate most emissions
from the transportation sector, and greatly enhance our
energy security; and
(5) to create, strengthen, and protect a
sustainable national energy economy.
SEC. 803. DEFINITIONS.
In this title:
(1) Fuel cell.--The term ``fuel cell'' means a
device that directly converts the chemical energy of a
fuel, which is supplied from an external source, and an
oxidant into electricity by electrochemical processes
occurring at separate electrodes in the device.
(2) Heavy-duty vehicle.--The term ``heavy-duty
vehicle'' means a motor vehicle that--
(A) is rated at more than 8,500 pounds
gross vehicle weight;
(B) has a curb weight of more than 6,000
pounds; or
(C) has a basic vehicle frontal area in
excess of 45 square feet.
(3) Infrastructure.--The term ``infrastructure''
means the equipment, systems, or facilities used to
produce, distribute, deliver, or store hydrogen (except
for onboard storage).
(4) Light-duty vehicle.--The term ``light-duty
vehicle'' means a motor vehicle that is rated at 8,500
or less pounds gross vehicle weight.
(5) Stationary; portable.--The terms ``stationary''
and ``portable'', when used in reference to a fuel
cell, include--
(A) continuous electric power; and
(B) backup electric power.
(6) Task force.--The term ``Task Force'' means the
Hydrogen and Fuel Cell Technical Task Force established
under section 806.
(7) Technical advisory committee.--The term
``Technical Advisory Committee'' means the independent
Technical Advisory Committee established under section
807.
SEC. 804. PLAN.
Not later than 6 months after the date of enactment of this
Act, the Secretary shall transmit to Congress a coordinated
plan for the programs described in this title and any other
programs of the Department that are directly related to fuel
cells or hydrogen. The plan shall describe, at a minimum--
(1) the agenda for the next 5 years for the
programs authorized under this title, including the
agenda for each activity enumerated in section 805(e);
(2) the types of entities that will carry out the
activities under this title and what role each entity
is expected to play;
(3) the milestones that will be used to evaluate
the programs for the next 5 years;
(4) the most significant technical and nontechnical
hurdles that stand in the way of achieving the goals
described in section 805, and how the programs will
address those hurdles; and
(5) the policy assumptions that are implicit in the
plan, including any assumptions that would affect the
sources of hydrogen or the marketability of hydrogen-
related products.
SEC. 805. PROGRAMS.
(a) In General.--The Secretary, in consultation with other
Federal agencies and the private sector, shall conduct a
research and development program on technologies relating to
the production, purification, distribution, storage, and use of
hydrogen energy, fuel cells, and related infrastructure.
(b) Goal.--The goal of the program shall be to demonstrate
and commercialize the use of hydrogen for transportation (in
light-duty vehicles and heavy-duty vehicles), utility,
industrial, commercial, and residential applications.
(c) Focus.--In carrying out activities under this section,
the Secretary shall focus on factors that are common to the
development of hydrogen infrastructure and the supply of
vehicle and electric power for critical consumer and commercial
applications, and that achieve continuous technical evolution
and cost reduction, particularly for hydrogen production, the
supply of hydrogen, storage of hydrogen, and end uses of
hydrogen that--
(1) steadily increase production, distribution, and
end use efficiency and reduce life-cycle emissions;
(2) resolve critical problems relating to
catalysts, membranes, storage, lightweight materials,
electronic controls, manufacturability, and other
problems that emerge from the program;
(3) enhance sources of renewable fuels and biofuels
for hydrogen production; and
(4) enable widespread use of distributed
electricity generation and storage.
(d) Public Education and Research.--In carrying out this
section, the Secretary shall support enhanced public education
and research conducted at institutions of higher education in
fundamental sciences, application design, and systems concepts
(including education and research relating to materials,
subsystems, manufacturability, maintenance, and safety)
relating to hydrogen and fuel cells.
(e) Activities.--The Secretary, in partnership with the
private sector, shall conduct programs to address--
(1) production of hydrogen from diverse energy
sources, including--
(A) fossil fuels, which may include carbon
capture and sequestration;
(B) hydrogen-carrier fuels (including
ethanol and methanol);
(C) renewable energy resources, including
biomass; and
(D) nuclear energy;
(2) use of hydrogen for commercial, industrial, and
residential electric power generation;
(3) safe delivery of hydrogen or hydrogen-carrier
fuels, including--
(A) transmission by pipeline and other
distribution methods; and
(B) convenient and economic refueling of
vehicles either at central refueling stations
or through distributed onsite generation;
(4) advanced vehicle technologies, including--
(A) engine and emission control systems;
(B) energy storage, electric propulsion,
and hybrid systems;
(C) automotive materials; and
(D) other advanced vehicle technologies;
(5) storage of hydrogen or hydrogen-carrier fuels,
including development of materials for safe and
economic storage in gaseous, liquid, or solid form at
refueling facilities and onboard vehicles;
(6) development of safe, durable, affordable, and
efficient fuel cells, including fuel-flexible fuel cell
power systems, improved manufacturing processes, high-
temperature membranes, cost-effective fuel processing
for natural gas, fuel cell stack and system
reliability, low temperature operation, and cold start
capability; and
(7) the ability of domestic automobile
manufacturers to manufacture commercially available
competitive hybrid vehicle technologies in the United
States.
(f) Program Goals.--
(1) Vehicles.--For vehicles, the goals of the
program are--
(A) to enable a commitment by automakers no
later than year 2015 to offer safe, affordable,
and technically viable hydrogen fuel cell
vehicles in the mass consumer market; and
(B) to enable production, delivery, and
acceptance by consumers of model year 2020
hydrogen fuel cell and other hydrogen-powered
vehicles that will have, when compared to light
duty vehicles in model year 2005--
(i) fuel economy that is
substantially higher;
(ii) substantially lower emissions
of air pollutants; and
(iii) equivalent or improved
vehicle fuel system crash integrity and
occupant protection.
(2) Hydrogen energy and energy infrastructure.--For
hydrogen energy and energy infrastructure, the goals of
the program are to enable a commitment not later than
2015 that will lead to infrastructure by 2020 that will
provide--
(A) safe and convenient refueling;
(B) improved overall efficiency;
(C) widespread availability of hydrogen
from domestic energy sources through--
(i) production, with consideration
of emissions levels;
(ii) delivery, including
transmission by pipeline and other
distribution methods for hydrogen; and
(iii) storage, including storage in
surface transportation vehicles;
(D) hydrogen for fuel cells, internal
combustion engines, and other energy conversion
devices for portable, stationary, micro,
critical needs facilities, and transportation
applications; and
(E) other technologies consistent with the
Department's plan.
(3) Fuel cells.--The goals for fuel cells and their
portable, stationary, and transportation applications
are to enable--
(A) safe, economical, and environmentally
sound hydrogen fuel cells;
(B) fuel cells for light duty and other
vehicles; and
(C) other technologies consistent with the
Department's plan.
(g) Funding.--
(1) In general.--The Secretary shall carry out the
programs under this section using a competitive, merit-
based review process and consistent with the generally
applicable Federal laws and regulations governing
awards of financial assistance, contracts, or other
agreements.
(2) Research centers.--Activities under this
section may be carried out by funding nationally
recognized university-based or Federal laboratory
research centers.
(h) Hydrogen Supply.--There are authorized to be
appropriated to carry out projects and activities relating to
hydrogen production, storage, distribution and dispensing,
transport, education and coordination, and technology transfer
under this section--
(1) $160,000,000 for fiscal year 2006;
(2) $200,000,000 for fiscal year 2007;
(3) $220,000,000 for fiscal year 2008;
(4) $230,000,000 for fiscal year 2009;
(5) $250,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2020.
(i) Fuel Cell Technologies.--There are authorized to be
appropriated to carry out projects and activities relating to
fuel cell technologies under this section--
(1) $150,000,000 for fiscal year 2006;
(2) $160,000,000 for fiscal year 2007;
(3) $170,000,000 for fiscal year 2008;
(4) $180,000,000 for fiscal year 2009;
(5) $200,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2020.
SEC. 806. HYDROGEN AND FUEL CELL TECHNICAL TASK FORCE.
(a) Establishment.--Not later than 120 days after the date
of enactment of this Act, the President shall establish an
interagency task force chaired by the Secretary with
representatives from each of the following:
(1) The Office of Science and Technology Policy
within the Executive Office of the President.
(2) The Department of Transportation.
(3) The Department of Defense.
(4) The Department of Commerce (including the
National Institute of Standards and Technology).
(5) The Department of State.
(6) The Environmental Protection Agency.
(7) The National Aeronautics and Space
Administration.
(8) Other Federal agencies as the Secretary
determines appropriate.
(b) Duties.--
(1) Planning.--The Task Force shall work toward--
(A) a safe, economical, and environmentally
sound fuel infrastructure for hydrogen and
hydrogen-carrier fuels, including an
infrastructure that supports buses and other
fleet transportation;
(B) fuel cells in government and other
applications, including portable, stationary,
and transportation applications;
(C) distributed power generation, including
the generation of combined heat, power, and
clean fuels including hydrogen;
(D) uniform hydrogen codes, standards, and
safety protocols; and
(E) vehicle hydrogen fuel system integrity
safety performance.
(2) Activities.--The Task Force may organize
workshops and conferences, may issue publications, and
may create databases to carry out its duties. The Task
Force shall--
(A) foster the exchange of generic,
nonproprietary information and technology among
industry, academia, and government;
(B) develop and maintain an inventory and
assessment of hydrogen, fuel cells, and other
advanced technologies, including the commercial
capability of each technology for the economic
and environmentally safe production,
distribution, delivery, storage, and use of
hydrogen;
(C) integrate technical and other
information made available as a result of the
programs and activities under this title;
(D) promote the marketplace introduction of
infrastructure for hydrogen fuel vehicles; and
(E) conduct an education program to provide
hydrogen and fuel cell information to potential
end-users.
(c) Agency Cooperation.--The heads of all agencies,
including those whose agencies are not represented on the Task
Force, shall cooperate with and furnish information to the Task
Force, the Technical Advisory Committee, and the Department.
SEC. 807. TECHNICAL ADVISORY COMMITTEE.
(a) Establishment.--The Hydrogen Technical and Fuel Cell
Advisory Committee is established to advise the Secretary on
the programs and activities under this title.
(b) Membership.--
(1) Members.--The Technical Advisory Committee
shall be comprised of not fewer than 12 nor more than
25 members. The members shall be appointed by the
Secretary to represent domestic industry, academia,
professional societies, government agencies, Federal
laboratories, previous advisory panels, and financial,
environmental, and other appropriate organizations
based on the Department's assessment of the technical
and other qualifications of Technical Advisory
Committee members and the needs of the Technical
Advisory Committee.
(2) Terms.--The term of a member of the Technical
Advisory Committee shall not be more than 3 years. The
Secretary may appoint members of the Technical Advisory
Committee in a manner that allows the terms of the
members serving at any time to expire at spaced
intervals so as to ensure continuity in the functioning
of the Technical Advisory Committee. A member of the
Technical Advisory Committee whose term is expiring may
be reappointed.
(3) Chairperson.--The Technical Advisory Committee
shall have a chairperson, who shall be elected by the
members from among their number.
(c) Review.--The Technical Advisory Committee shall review
and make recommendations to the Secretary on--
(1) the implementation of programs and activities
under this title;
(2) the safety, economical, and environmental
consequences of technologies for the production,
distribution, delivery, storage, or use of hydrogen
energy and fuel cells; and
(3) the plan under section 804.
(d) Response.--
(1) Consideration of recommendations.--The
Secretary shall consider, but need not adopt, any
recommendations of the Technical Advisory Committee
under subsection (c).
(2) Biennial report.--The Secretary shall transmit
a biennial report to Congress describing any
recommendations made by the Technical Advisory
Committee since the previous report. The report shall
include a description of how the Secretary has
implemented or plans to implement the recommendations,
or an explanation of the reasons that a recommendation
will not be implemented. The report shall be
transmitted along with the President's budget proposal.
(e) Support.--The Secretary shall provide resources
necessary in the judgment of the Secretary for the Technical
Advisory Committee to carry out its responsibilities under this
title.
SEC. 808. DEMONSTRATION.
(a) In General.--In carrying out the programs under this
section, the Secretary shall fund a limited number of
demonstration projects, consistent with this title and a
determination of the maturity, cost-effectiveness, and
environmental impacts of technologies supporting each project.
In selecting projects under this subsection, the Secretary
shall, to the extent practicable and in the public interest,
select projects that--
(1) involve using hydrogen and related products at
existing facilities or installations, such as existing
office buildings, military bases, vehicle fleet
centers, transit bus authorities, or units of the
National Park System;
(2) depend on reliable power from hydrogen to carry
out essential activities;
(3) lead to the replication of hydrogen
technologies and draw such technologies into the
marketplace;
(4) include vehicle, portable, and stationary
demonstrations of fuel cell and hydrogen-based energy
technologies;
(5) address the interdependency of demand for
hydrogen fuel cell applications and hydrogen fuel
infrastructure;
(6) raise awareness of hydrogen technology among
the public;
(7) facilitate identification of an optimum
technology among competing alternatives;
(8) address distributed generation using renewable
sources;
(9) carry out demonstrations of evolving hydrogen
and fuel cell technologies in national parks, remote
island areas, and on Indian tribal land, as selected by
the Secretary;
(10) carry out a program to demonstrate
developmental hydrogen and fuel cell systems for
mobile, portable, and stationary uses, using improved
versions of the learning demonstrations program concept
of the Department including demonstrations involving--
(A) light-duty vehicles;
(B) heavy-duty vehicles;
(C) fleet vehicles;
(D) specialty industrial and farm vehicles;
and
(E) commercial and residential portable,
continuous, and backup electric power
generation;
(11) in accordance with any code or standards
developed in a region, fund prototype, pilot fleet, and
infrastructure regional hydrogen supply corridors along
the interstate highway system in varied climates across
the United States; and
(12) fund demonstration programs that explore the
use of hydrogen blends, hybrid hydrogen, and hydrogen
reformed from renewable agricultural fuels, including
the use of hydrogen in hybrid electric, heavier duty,
and advanced internal combustion-powered vehicles.
The Secretary shall give preference to projects which address
multiple elements contained in paragraphs (1) through (12).
(b) System Demonstrations.--
(1) In general.--As a component of the
demonstration program under this section, the Secretary
shall provide grants, on a cost share basis as
appropriate, to eligible entities (as determined by the
Secretary) for use in--
(A) devising system design concepts that
provide for the use of advanced composite
vehicles in programs under section 782 that--
(i) have as a primary goal the
reduction of drive energy requirements;
(ii) after 2010, add another
research and development phase, as
defined in subsection (c), including
the vehicle and infrastructure
partnerships developed under the
learning demonstrations program concept
of the Department; and
(iii) are managed through an
enhanced FreedomCAR program within the
Department that encourages involvement
in cost-shared projects by
manufacturers and governments; and
(B) designing a local distributed energy
system that--
(i) incorporates renewable hydrogen
production, off-grid electricity
production, and fleet applications in
industrial or commercial service;
(ii) integrates energy or
applications described in clause (i),
such as stationary, portable, micro,
and mobile fuel cells, into a high-
density commercial or residential
building complex or agricultural
community; and
(iii) is managed in cooperation
with industry, State, tribal, and local
governments, agricultural
organizations, and nonprofit generators
and distributors of electricity.
(c) Identification of New Program Requirements.--In
carrying out the demonstrations under subsection (a), the
Secretary, in consultation with the Task Force and the
Technical Advisory Committee, shall--
(1) after 2008 for stationary and portable
applications, and after 2010 for vehicles, identify new
requirements that refine technological concepts,
planning, and applications; and
(2) during the second phase of the learning
demonstrations under subsection (b)(1)(A)(ii), redesign
subsequent program work to incorporate those
requirements.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $185,000,000 for fiscal year 2006;
(2) $200,000,000 for fiscal year 2007;
(3) $250,000,000 for fiscal year 2008;
(4) $300,000,000 for fiscal year 2009;
(5) $375,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2020.
SEC. 809. CODES AND STANDARDS.
(a) In General.--The Secretary, in cooperation with the
Task Force, shall provide grants to, or offer to enter into
contracts with, such professional organizations, public service
organizations, and government agencies as the Secretary
determines appropriate to support timely and extensive
development of safety codes and standards relating to fuel cell
vehicles, hydrogen energy systems, and stationary, portable,
and micro fuel cells.
(b) Educational Efforts.--The Secretary shall support
educational efforts by organizations and agencies described in
subsection (a) to share information, including information
relating to best practices, among those organizations and
agencies.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $4,000,000 for fiscal year 2006;
(2) $7,000,000 for fiscal year 2007;
(3) $8,000,000 for fiscal year 2008;
(4) $10,000,000 for fiscal year 2009;
(5) $9,000,000 for fiscal year 2010; and
(6) such sums as are necessary for each of fiscal
years 2011 through 2020.
SEC. 810. DISCLOSURE.
Section 623 of the Energy Policy Act of 1992 (42 U.S.C.
13293) shall apply to any project carried out through a grant,
cooperative agreement, or contract under this title.
SEC. 811. REPORTS.
(a) Secretary.--Subject to subsection (c), not later than 2
years after the date of enactment of this Act, and triennially
thereafter, the Secretary shall submit to Congress a report
describing--
(1) activities carried out by the Department under
this title, for hydrogen and fuel cell technology;
(2) measures the Secretary has taken during the
preceding 3 years to support the transition of primary
industry (or a related industry) to a fully
commercialized hydrogen economy;
(3) any change made to the strategy relating to
hydrogen and fuel cell technology to reflect the
results of a learning demonstrations;
(4) progress, including progress in infrastructure,
made toward achieving the goal of producing and
deploying not less than--
(A) 100,000 hydrogen-fueled vehicles in the
United States by 2010; and
(B) 2,500,000 hydrogen-fueled vehicles in
the United States by 2020;
(5) progress made toward achieving the goal of
supplying hydrogen at a sufficient number of fueling
stations in the United States by 2010 including by
integrating--
(A) hydrogen activities; and
(B) associated targets and timetables for
the development of hydrogen technologies;
(6) any problem relating to the design, execution,
or funding of a program under this title;
(7) progress made toward and goals achieved in
carrying out this title and updates to the
developmental roadmap, including the results of the
reviews conducted by the National Academy of Sciences
under subsection (b) for the fiscal years covered by
the report; and
(8) any updates to strategic plans that are
necessary to meet the goals described in paragraph (4).
(b) External Review.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy will review the programs under sections 805 and 808
every fourth year following the date of enactment of this Act.
The Academy's review shall include the program priorities and
technical milestones, and evaluate the progress toward
achieving them. The first review shall be completed not later
than 5 years after the date of enactment of this Act. Not later
than 45 days after receiving the review, the Secretary shall
transmit the review to Congress along with a plan to implement
the review's recommendations or an explanation for the reasons
that a recommendation will not be implemented.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
each of fiscal years 2006 through 2020.
SEC. 812. SOLAR AND WIND TECHNOLOGIES.
(a) Solar Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this title related to solar energy
technologies and for implementing the recommendations
related to solar energy technologies that are included
in the report transmitted under subsection (e);
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically
diverse to demonstrate the production of hydrogen at
solar energy facilities, including one demonstration
project at a National Laboratory or institution of
higher education;
(3) establish a program--
(A) to develop optimized concentrating
solar power devices that may be used for the
production of both electricity and hydrogen;
and
(B) to evaluate the use of thermochemical
cycles for hydrogen production at the
temperatures attainable with concentrating
solar power devices;
(4) coordinate with activities sponsored by the
Department's Office of Nuclear Energy, Science, and
Technology on high-temperature materials,
thermochemical cycles, and economic issues related to
solar energy;
(5) provide for the construction and operation of
new concentrating solar power devices or solar power
cogeneration facilities that produce hydrogen either
concurrently with, or independently of, the production
of electricity;
(6) support existing facilities and programs of
study related to concentrating solar power devices; and
(7) establish a program--
(A) to develop methods that use electricity
from photovoltaic devices for the onsite
production of hydrogen, such that no
intermediate transmission or distribution
infrastructure is required or used and future
demand growth may be accommodated;
(B) to evaluate the economics of small-
scale electrolysis for hydrogen production; and
(C) to study the potential of modular
photovoltaic devices for the development of a
hydrogen infrastructure, the security
implications of a hydrogen infrastructure, and
the benefits potentially derived from a
hydrogen infrastructure.
(b) Wind Energy Technologies.--The Secretary shall--
(1) prepare a detailed roadmap for carrying out the
provisions in this title related to wind energy
technologies and for implementing the recommendations
related to wind energy technologies that are included
in the report transmitted under subsection (e); and
(2) provide for the establishment of 5 projects in
geographic areas that are regionally and climatically
diverse to demonstrate the production of hydrogen at
existing wind energy facilities, including one
demonstration project at a National Laboratory or
institution of higher education.
(c) Program Support.--The Secretary shall support programs
at institutions of higher education for the development of
solar energy technologies and wind energy technologies for the
production of hydrogen. The programs supported under this
subsection shall--
(1) enhance fellowship and faculty assistance
programs;
(2) provide support for fundamental research;
(3) encourage collaborative research among
industry, National Laboratories, and institutions of
higher education;
(4) support communication and outreach; and
(5) to the greatest extent possible--
(A) be located in geographic areas that are
regionally and climatically diverse; and
(B) be located at part B institutions,
minority institutions, and institutions of
higher education located in States
participating in the Experimental Program to
Stimulate Competitive Research of the
Department.
(d) Institutions of Higher Education and National
Laboratory Interactions.--In conjunction with the programs
supported under this section, the Secretary shall develop
sabbatical, fellowship, and visiting scientist programs to
encourage National Laboratories and institutions of higher
education to share and exchange personnel.
(e) Report.--The Secretary shall transmit to the Congress
not later than 120 days after the date of enactment of this Act
a report containing detailed summaries of the roadmaps prepared
under subsections (a)(1) and (b)(1), descriptions of the
Secretary's progress in establishing the projects and other
programs required under this section, and recommendations for
promoting the availability of advanced solar and wind energy
technologies for the production of hydrogen.
(f) Definitions.--For purposes of this section--
(1) the term ``concentrating solar power devices''
means devices that concentrate the power of the sun by
reflection or refraction to improve the efficiency of a
photovoltaic or thermal generation process;
(2) the term ``minority institution'' has the
meaning given to that term in section 365 of the Higher
Education Act of 1965 (20 U.S.C. 1067k);
(3) the term ``part B institution'' has the meaning
given to that term in section 322 of the Higher
Education Act of 1965 (20 U.S.C. 1061); and
(4) the term ``photovoltaic devices'' means devices
that convert light directly into electricity through a
solid-state, semiconductor process.
(g) Authorization of Appropriations.--There is authorized
to be appropriated such sums as are necessary for carrying out
the activities under this section for each of fiscal years 2006
through 2020.
SEC. 813. TECHNOLOGY TRANSFER.
In carrying out this title, the Secretary shall carry out
programs that--
(1) provide for the transfer of critical hydrogen
and fuel cell technologies to the private sector;
(2) accelerate wider application of those
technologies in the global market;
(3) foster the exchange of generic, nonproprietary
information; and
(4) assess technical and commercial viability of
technologies relating to the production, distribution,
storage, and use of hydrogen energy and fuel cells.
SEC. 814. MISCELLANEOUS PROVISIONS.
(a) Representation.--The Secretary may represent the United
States interests with respect to activities and programs under
this title, in coordination with the Department of
Transportation, the National Institute of Standards and
Technology, and other relevant Federal agencies, before
governments and nongovernmental organizations including--
(1) other Federal, State, regional, and local
governments and their representatives;
(2) industry and its representatives, including
members of the energy and transportation industries;
and
(3) in consultation with the Department of State,
foreign governments and their representatives including
international organizations.
(b) Regulatory Authority.--Nothing in this title shall be
construed to alter the regulatory authority of the Department.
SEC. 815. COST SHARING.
The costs of carrying out projects and activities under
this title shall be shared in accordance with section 988.
SEC. 816. SAVINGS CLAUSE.
Nothing in this title shall be construed to affect the
authority of the Secretary of Transportation that may exist
prior to the date of enactment of this Act with respect to--
(1) research into, and regulation of, hydrogen-
powered vehicles fuel systems integrity, standards, and
safety under subtitle VI of title 49, United States
Code;
(2) regulation of hazardous materials
transportation under chapter 51 of title 49, United
States Code;
(3) regulation of pipeline safety under chapter 601
of title 49, United States Code;
(4) encouragement and promotion of research,
development, and deployment activities relating to
advanced vehicle technologies under section 5506 of
title 49, United States Code;
(5) regulation of motor vehicle safety under
chapter 301 of title 49, United States Code;
(6) automobile fuel economy under chapter 329 of
title 49, United States Code; or
(7) representation of the interests of the United
States with respect to the activities and programs
under the authority of title 49, United States Code.
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
2005''.
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 with the general goals of--
(1) increasing the efficiency of all energy
intensive sectors through conservation and improved
technologies;
(2) promoting diversity of energy supply;
(3) decreasing the dependence of the United States
on foreign energy supplies;
(4) improving the energy security of the United
States; and
(5) decreasing the environmental impact of energy-
related activities.
(b) Goals.--The Secretary shall publish measurable cost and
performance-based goals, comparable over time, 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 fuels.
(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,
institutions of higher education, 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 any Federal agency, to
support the establishment of regulatory standards or regulatory
requirements.
SEC. 903. DEFINITIONS.
In this title:
(1) Departmental mission.--The term ``departmental
mission'' means any of the functions vested in the
Secretary by the Department of Energy Organization Act
(42 U.S.C. 7101 et seq.) or other law.
(2) Hispanic-serving institution.--The term
``Hispanic-serving institution'' has the meaning given
the term in section 502(a) of the Higher Education Act
of 1965 (20 U.S.C. 1101a(a)).
(3) Nonmilitary energy laboratory.--The term
``nonmilitary energy laboratory'' means a National
Laboratory other than a National Laboratory listed in
subparagraph (G), (H), or (N) of section 2(3).
(4) Part b institution.--The term ``part B
institution'' has the meaning given the term in section
322 of the Higher Education Act of 1965 (20 U.S.C.
1061).
(5) Single-purpose research facility.--The term
``single-purpose research facility'' means--
(A) any of the primarily single-purpose
entities owned by the Department; or
(B) any other organization of the
Department designated by the Secretary.
(6) University.--The term ``university'' has the
meaning given the term ``institution of higher
education'' in section 101 of the Higher Education Act
of 1965 (20 U.S.C. 1001).
Subtitle A--Energy Efficiency
SEC. 911. ENERGY EFFICIENCY.
(a) In General.--
(1) Objectives.--The Secretary shall conduct
programs of energy efficiency research, development,
demonstration, and commercial application, including
activities described in this subtitle. Such programs
shall take into consideration the following objectives:
(A) Increasing the energy efficiency of
vehicles, buildings, and industrial processes.
(B) Reducing the demand of the United
States for energy, especially energy from
foreign sources.
(C) Reducing the cost of energy and making
the economy more efficient and competitive.
(D) Improving the energy security of the
United States.
(E) Reducing the environmental impact of
energy-related activities.
(2) Programs.--Programs under this subtitle shall
include research, development, demonstration, and
commercial application of--
(A) advanced, cost-effective technologies
to improve the energy efficiency and
environmental performance of vehicles,
including--
(i) hybrid and electric propulsion
systems;
(ii) plug-in hybrid systems;
(iii) advanced combustion engines;
(iv) weight and drag reduction
technologies;
(v) whole-vehicle design
optimization; and
(vi) advanced drive trains;
(B) cost-effective technologies, for new
construction and retrofit, to improve the
energy efficiency and environmental performance
of buildings, using a whole-buildings approach,
including onsite renewable energy generation;
(C) advanced technologies to improve the
energy efficiency, environmental performance,
and process efficiency of energy-intensive and
waste-intensive industries; and
(D) advanced control devices to improve the
energy efficiency of electric motors, including
those used in industrial processes, heating,
ventilation, and cooling.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out energy
efficiency and conservation research, development,
demonstration, and commercial application activities, including
activities authorized under this subtitle--
(1) $783,000,000 for fiscal year 2007;
(2) $865,000,000 for fiscal year 2008; and
(3) $952,000,000 for fiscal year 2009.
(c) Allocations.--From amounts authorized under subsection
(b), the following sums are authorized:
(1) For activities under section 912, $50,000,000
for each of fiscal years 2007 through 2009.
(2) For activities under section 915, $7,000,000
for each of fiscal years 2007 through 2009.
(3) For activities under subsection (a)(2)(A)--
(A) $200,000,000 for fiscal year 2007;
(B) $270,000,000 for fiscal year 2008; and
(C) $310,000,000 for fiscal year 2009.
(4) For activities under subsection (a)(2)(D),
$2,000,000 for each of fiscal years 2007 and 2008.
(d) Extended Authorization.--There are authorized to be
appropriated to the Secretary to carry out section 912
$50,000,000 for each of fiscal years 2010 through 2013.
(e) Limitations.--None of the funds authorized to be
appropriated under this section may be used for--
(1) the issuance or implementation of energy
efficiency regulations;
(2) the weatherization program established under
part A of title IV of the Energy Conservation and
Production Act (42 U.S.C. 6861 et seq.);
(3) a State energy conservation plan established
under part D of title III of the Energy Policy and
Conservation Act (42 U.S.C. 6321 et seq.); or
(4) a Federal energy management measure carried out
under part 3 of title V of the National Energy
Conservation Policy Act (42 U.S.C. 8251 et seq.).
SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.
(a) Definitions.--In this section:
(1) Advanced solid-state lighting.--The term
``advanced solid-state lighting'' means a
semiconducting device package and delivery system that
produces white light using externally applied voltage.
(2) Industry alliance.--The term ``Industry
Alliance'' means an entity selected by the Secretary
under subsection (d).
(3) Initiative.--The term ``Initiative'' means the
Next Generation Lighting Initiative carried out under
this section.
(4) Research.--The term ``research'' includes
research on the technologies, materials, and
manufacturing processes required for white light
emitting diodes.
(5) White light emitting diode.--The term ``white
light emitting diode'' means a semiconducting package,
using either organic or inorganic materials, that
produces white light using externally applied voltage.
(b) Initiative.--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.
(c) 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, are more energy-efficient and cost-
competitive, and have less environmental impact.
(d) Industry Alliance.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
competitively select an Industry Alliance to represent
participants who are private, for-profit firms, open to large
and small businesses, that, as a group, are broadly
representative of United States solid state lighting research,
development, infrastructure, and manufacturing expertise as a
whole.
(e) Research.--
(1) Grants.--The Secretary shall carry out the
research activities of the Initiative through
competitively awarded grants to--
(A) researchers, including Industry
Alliance participants;
(B) small businesses;
(C) National Laboratories; and
(D) institutions of higher education.
(2) Industry alliance.--The Secretary shall
annually solicit from the Industry Alliance--
(A) comments to identify solid-state
lighting technology needs;
(B) an assessment of the progress of the
research activities of the Initiative; and
(C) assistance in annually updating solid-
state lighting technology roadmaps.
(3) Availability to public.--The information and
roadmaps under paragraph (2) shall be available to the
public.
(f) Development, Demonstration, and Commercial
Application.--
(1) In general.--The Secretary shall carry out a
development, demonstration, and commercial application
program for the Initiative through competitively
selected awards.
(2) Preference.--In making the awards, the
Secretary may give preference to participants in the
Industry Alliance.
(g) Cost Sharing.--In carrying out this section, the
Secretary shall require cost sharing in accordance with section
988.
(h) Intellectual Property.--The Secretary may require (in
accordance with section 202(a)(ii) of title 35, United States
Code, section 152 of the Atomic Energy Act of 1954 (42 U.S.C.
2182), and section 9 of the Federal Nonnuclear Energy Research
and Development Act of 1974 (42 U.S.C. 5908)) that for any new
invention developed under subsection (e)--
(1) that the Industry Alliance participants who are
active participants in research, development, and
demonstration activities related to the advanced solid-
state lighting technologies that are covered by this
section shall be granted the first option to negotiate
with the invention owner, at least in the field of
solid-state lighting, nonexclusive licenses and
royalties on terms that are reasonable under the
circumstances;
(2)(A) that, for 1 year after a United States
patent is issued for the invention, the patent holder
shall not negotiate any license or royalty with any
entity that is not a participant in the Industry
Alliance described in paragraph (1); and
(B) that, during the year described in subparagraph
(A), the patent holder shall negotiate nonexclusive
licenses and royalties in good faith with any
interested participant in the Industry Alliance
described in paragraph (1); and
(3) such other terms as the Secretary determines
are required to promote accelerated commercialization
of inventions made under the Initiative.
(i) National Academy Review.--The Secretary shall enter
into an arrangement with the National Academy of Sciences to
conduct periodic reviews of the Initiative.
SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.
(a) Interagency Group.--
(1) In general.--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
(referred to in this section as the ``Initiative'').
(2) Cochairs.--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.--
(1) In general.--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.
(2) Inclusions.--The plan shall include--
(A) research, development, demonstration,
and commercial application of energy technology
systems and materials for new construction and
retrofit relating to the building envelope and
building system components;
(B) research, development, demonstration,
and commercial application of energy technology
and infrastructure enabling the energy
efficient, automated operation of buildings and
building equipment; and
(C) 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) Administration.--Nothing in this section provides any
Federal agency with new authority to regulate building
performance.
SEC. 914. BUILDING STANDARDS.
(a) Definition of High Performance Building.--In this
section, the term ``high performance building'' means a
building that integrates and optimizes all major high-
performance building attributes, including energy efficiency,
durability, life-cycle performance, and occupant productivity.
(b) Assessment.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall enter into an
agreement with the National Institute of Building Sciences to--
(1) conduct an assessment (in cooperation with
industry, standards development organizations, and
other entities, as appropriate) of whether the current
voluntary consensus standards and rating systems for
high performance buildings are consistent with the
current technological state of the art, including
relevant results from the research, development and
demonstration activities of the Department;
(2) determine if additional research is required,
based on the findings of the assessment; and
(3) recommend steps for the Secretary to accelerate
the development of voluntary consensus-based standards
for high performance buildings that are based on the
findings of the assessment.
(c) Grant and Technical Assistance Program.--Consistent
with subsection (b) and section 12(d) of the National
Technology Transfer and Advancement Act of 1995 (15 U.S.C. 272
note), the Secretary shall establish a grant and technical
assistance program to support the development of voluntary
consensus-based standards for high performance buildings.
SEC. 915. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.
(a) Definitions.--In this section:
(1) Battery.--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) Associated equipment.--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.--
(1) In general.--The Secretary shall establish and
conduct a program of research, development,
demonstration, and commercial application of energy
technology for the secondary use of batteries, if the
Secretary finds that there are sufficient numbers of
batteries to support the program.
(2) Administration.--The program shall be--
(A) designed to demonstrate the use of
batteries in secondary applications, including
utility and commercial power storage and power
quality;
(B) 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
(C) coordinated with ongoing secondary
battery use programs at the National
Laboratories and in industry.
(c) Solicitation.--
(1) In general.--Not later than 180 days after the
date of 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.
(2) Additional solicitations.--The Secretary may
make additional solicitations for proposals if the
Secretary determines that the solicitations are
necessary to carry out this section.
(d) Selection of Proposals.--
(1) In general.--Not later than 90 days after the
closing date established by the Secretary for receipt
of proposals under subsection (c), the Secretary shall
select up to 5 proposals that may receive financial
assistance under this section once the Department
receives appropriated funds to carry out this section.
(2) Factors.--In selecting proposals, the Secretary
shall consider--
(A) the diversity of battery type;
(B) geographic and climatic diversity; and
(C) life-cycle environmental effects of the
approaches.
(3) Limitation.--No 1 project selected under this
section shall receive more than 25 percent of the funds
made available to carry out the program under this
section.
(4) Non-federal involvement.--In selecting
proposals, 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) Other criteria.--In selecting proposals, the
Secretary may consider such other criteria as the
Secretary considers appropriate.
(e) Conditions.--In carrying out this section, the
Secretary shall require that--
(1) relevant information be provided to--
(A) the Department;
(B) the users of the batteries;
(C) the proposers of a project under this
section; and
(D) the battery manufacturers; and
(2) the costs of carrying out projects and
activities under this section are shared in accordance
with section 988.
SEC. 916. 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 Congress, along
with the annual budget request of the President submitted to
Congress, 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.
SEC. 917. ADVANCED ENERGY EFFICIENCY TECHNOLOGY TRANSFER CENTERS.
(a) Grants.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall make grants to
nonprofit institutions, State and local governments, or
universities (or consortia thereof), to establish a
geographically dispersed network of Advanced Energy Efficiency
Technology Transfer Centers, to be located in areas the
Secretary determines have the greatest need of the services of
such Centers. In establishing the network, the Secretary shall
consider the special needs and opportunities for increased
energy efficiency for manufactured and site-built housing.
(b) Activities.--
(1) In general.--Each Center shall operate a
program to encourage demonstration and commercial
application of advanced energy methods and technologies
through education and outreach to building and
industrial professionals, and to other individuals and
organizations with an interest in efficient energy use.
(2) Advisory panel.--Each Center shall establish an
advisory panel to advise the Center on how best to
accomplish the activities under paragraph (1).
(c) Application.--A person seeking a grant under this
section shall submit to the Secretary an application in such
form and containing such information as the Secretary may
require. The Secretary may award a grant under this section to
an entity already in existence if the entity is otherwise
eligible under this section.
(d) Selection Criteria.--The Secretary shall award grants
under this section on the basis of the following criteria, at a
minimum:
(1) The ability of the applicant to carry out the
activities described in subsection (b)(1).
(2) The extent to which the applicant will
coordinate the activities of the Center with other
entities, such as State and local governments,
utilities, and educational and research institutions.
(e) Cost-Sharing.--In carrying out this section, the
Secretary shall require cost-sharing in accordance with the
requirements of section 988 for commercial application
activities.
(f) Advisory Committee.--The Secretary shall establish an
advisory committee to advise the Secretary on the establishment
of Centers under this section. The advisory committee shall be
composed of individuals with expertise in the area of advanced
energy methods and technologies, including at least 1
representative from--
(1) State or local energy offices;
(2) energy professionals;
(3) trade or professional associations;
(4) architects, engineers, or construction
professionals;
(5) manufacturers;
(6) the research community; and
(7) nonprofit energy or environmental
organizations.
(g) Definitions.--For purposes of this section:
(1) Advanced energy methods and technologies.--The
term ``advanced energy methods and technologies'' means
all methods and technologies that promote energy
efficiency and conservation, including distributed
generation technologies, and life-cycle analysis of
energy use.
(2) Center.--The term ``Center'' means an Advanced
Energy Technology Transfer Center established pursuant
to this section.
(3) Distributed generation.--The term ``distributed
generation'' means an electric power generation
facility that is designed to serve retail electric
consumers at or near the facility site.
(h) Authorization of Appropriations.--In addition to
amounts otherwise authorized to be appropriated in section 911,
there are authorized to be appropriated for the program under
this section such sums as may be appropriated.
Subtitle B--Distributed Energy and Electric Energy Systems
SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.
(a) In General.--The Secretary shall carry out programs of
research, development, demonstration, and commercial
application on distributed energy resources and systems
reliability and efficiency, to improve the reliability and
efficiency of distributed energy resources and systems,
integrating advanced energy technologies with grid
connectivity, including activities described in this subtitle.
The programs shall address advanced energy technologies and
systems and advanced grid reliability technologies.
(b) Authorization of Appropriations.--
(1) Distributed energy and electric energy systems
activities.--There are authorized to be appropriated to
the Secretary to carry out distributed energy and
electric energy systems activities, including
activities authorized under this subtitle--
(A) $240,000,000 for fiscal year 2007;
(B) $255,000,000 for fiscal year 2008; and
(C) $273,000,000 for fiscal year 2009.
(2) Power delivery research initiative.--There are
authorized to be appropriated to the Secretary to carry
out the Power Delivery Research Initiative under
subsection 925(e) such sums as may be necessary for
each of fiscal years 2007 through 2009.
(c) Micro-Cogeneration Energy Technology.--From amounts
authorized under subsection (b), $20,000,000 for each of fiscal
years 2007 and 2008 shall be available to carry out activities
under section 923.
(d) High-voltage Transmission Lines.--From amounts
authorized under subsection (b), $2,000,000 for fiscal year
2007 shall be available to carry out activities under section
925(g).
SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM.
(a) In General.--The Secretary shall establish a
comprehensive research, development, demonstration, and
commercial application to improve the energy efficiency of high
power density facilities, including data centers, server farms,
and telecommunications facilities.
(b) Technologies.--The program shall consider technologies
that provide significant improvement in thermal controls,
metering, load management, peak load reduction, or the
efficient cooling of electronics.
SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY.
(a) In General.--The Secretary shall make competitive,
merit-based grants to consortia for the development of micro-
cogeneration energy technology.
(b) Uses.--The consortia shall explore--
(1) the use of small-scale combined heat and power
in residential heating appliances;
(2) the use of excess power to operate other
appliances within the residence; and
(3) the supply of excess generated power to the
power grid.
SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAMS.
(a) Coordinating Consortia Program.--The Secretary may
provide financial assistance to coordinating consortia of
interdisciplinary participants for demonstrations designed to
accelerate the use 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.
(b) Small-Scale Portable Power Program.--
(1) In general.--The Secretary shall--
(A) establish a research, development, and
demonstration program to develop working models
of small scale portable power devices; and
(B) to the fullest extent practicable,
identify and utilize the resources of
universities that have shown expertise with
respect to advanced portable power devices for
either civilian or military use.
(2) Organization.--The universities identified and
utilized under paragraph (1)(B) are authorized to
establish an organization to promote small scale
portable power devices.
(3) Definition.--For purposes of this subsection,
the term ``small scale portable power device'' means a
field-deployable portable mechanical or
electromechanical device that can be used for
applications such as communications, computation,
mobility enhancement, weapons systems, optical devices,
cooling, sensors, medical devices, and active
biological agent detection systems.
SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.
(a) Program.--The Secretary shall establish a comprehensive
research, development, and demonstration program to ensure the
reliability, efficiency, and environmental integrity of
electrical transmission and distribution systems, which shall
include--
(1) advanced energy delivery technologies, 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.--
(1) In general.--Not later than 1 year after the
date of enactment of this Act, the Secretary, in
consultation with other appropriate Federal agencies,
shall prepare and submit to Congress a 5-year program
plan to guide activities under this section.
(2) Consultation.--In preparing the program plan,
the Secretary shall consult with--
(A) utilities;
(B) energy service providers;
(C) manufacturers;
(D) institutions of higher education;
(E) other appropriate State and local
agencies;
(F) environmental organizations;
(G) professional and technical societies;
and
(H) any other persons the Secretary
considers appropriate.
(c) Implementation.--The Secretary shall consider
implementing the program under this section using a consortium
of participants from industry, institutions of higher
education, and National Laboratories.
(d) Report.--Not later than 2 years after the submission of
the plan under subsection (b), the Secretary shall submit to
Congress a report--
(1) describing the progress made under this
section; and
(2) identifying any additional resources needed to
continue the development and commercial application of
transmission and distribution of infrastructure
technologies.
(e) Power Delivery Research Initiative.--
(1) In general.--The Secretary shall establish a
research, development, and demonstration initiative
specifically focused on power delivery using components
incorporating high temperature superconductivity.
(2) Goals.--The goals of the Initiative shall be--
(A) to establish world-class facilities to
develop high temperature superconductivity
power applications in partnership with
manufacturers and utilities;
(B) to provide technical leadership for
establishing reliability for high temperature
superconductivity power applications, including
suitable modeling and analysis;
(C) to facilitate the commercial transition
toward direct current power transmission,
storage, and use for high power systems using
high temperature superconductivity; and
(D) to 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.
(3) Inclusions.--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
institutions of higher education to--
(i) demonstrate those technologies;
(ii) prepare the technologies for
commercial introduction; and
(iii) address cost or performance
roadblocks to successful commercial
use.
(f) Transmission and Distribution Grid Planning and
Operations Initiative.--
(1) In general.--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.
(2) Goals.--The goals of the Initiative shall be--
(A)(i) to develop and use a geographically
distributed center, consisting of institutions
of higher education, and National Laboratories,
with expertise and facilities to develop the
underlying theory and software for power system
application; and
(ii) to ensure commercial development in
partnership with software vendors and
utilities;
(B) to provide technical leadership in
engineering and economic analysis for the
reliability and efficiency of power systems
planning and operations in the presence of
competitive markets for electricity;
(C) to model, simulate, and experiment with
new market mechanisms and operating practices
to understand and optimize those new methods
before actual use; and
(D) to provide technical support and
technology transfer to electric utilities and
other participants in the domestic electric
industry and marketplace.
(g) High-voltage Transmission Lines.--As part of the
program described in subsection (a), the Secretary shall award
a grant to a university research program to design and test, in
consultation with the Tennessee Valley Authority, state-of-the-
art optimization techniques for power flow through existing
high voltage transmission lines.
Subtitle C--Renewable Energy
SEC. 931. RENEWABLE ENERGY.
(a) In General.--
(1) Objectives.--The Secretary shall conduct
programs of renewable energy research, development,
demonstration, and commercial application, including
activities described in this subtitle. Such programs
shall take into consideration the following objectives:
(A) Increasing the conversion efficiency of
all forms of renewable energy through improved
technologies.
(B) Decreasing the cost of renewable energy
generation and delivery.
(C) Promoting the diversity of the energy
supply.
(D) Decreasing the dependence of the United
States on foreign energy supplies.
(E) Improving United States energy
security.
(F) Decreasing the environmental impact of
energy-related activities.
(G) Increasing the export of renewable
generation equipment from the United States.
(2) Programs.--
(A) Solar energy.--The Secretary shall
conduct a program of research, development,
demonstration, and commercial application for
solar energy, including--
(i) photovoltaics;
(ii) solar hot water and solar
space heating;
(iii) concentrating solar power;
(iv) lighting systems that
integrate sunlight and electrical
lighting in complement to each other in
common lighting fixtures for the
purpose of improving energy efficiency;
(v) manufacturability of low cost
high, quality solar systems; and
(vi) development of products that
can be easily integrated into new and
existing buildings.
(B) Wind energy.--The Secretary shall
conduct a program of research, development,
demonstration, and commercial application for
wind energy, including--
(i) low speed wind energy;
(ii) offshore wind energy;
(iii) testing and verification
(including construction and operation
of a research and testing facility
capable of testing wind turbines); and
(iv) distributed wind energy
generation.
(C) Geothermal.--The Secretary shall
conduct a program of research, development,
demonstration, and commercial application for
geothermal energy. The program shall focus on
developing improved technologies for reducing
the costs of geothermal energy installations,
including technologies for--
(i) improving detection of
geothermal resources;
(ii) decreasing drilling costs;
(iii) decreasing maintenance costs
through improved materials;
(iv) increasing the potential for
other revenue sources, such as mineral
production; and
(v) increasing the understanding of
reservoir life cycle and management.
(D) Hydropower.--The Secretary shall
conduct a program of research, development,
demonstration, and commercial application for
cost competitive technologies that enable the
development of new and incremental hydropower
capacity, adding to the diversity of the energy
supply of the United States, including:
(i) Fish-friendly large turbines.
(ii) Advanced technologies to
enhance environmental performance and
yield greater energy efficiencies.
(E) Miscellaneous projects.--The Secretary
shall conduct research, development,
demonstration, and commercial application
programs for--
(i) ocean energy, including wave
energy;
(ii) 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;
(iii) renewable energy technologies
for cogeneration of hydrogen and
electricity; and
(iv) kinetic hydro turbines.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out renewable
energy research, development, demonstration, and commercial
application activities, including activities authorized under
this subtitle--
(1) $632,000,000 for fiscal year 2007;
(2) $743,000,000 for fiscal year 2008; and
(3) $852,000,000 for fiscal year 2009.
(c) Bioenergy.--From the amounts authorized under
subsection (b), there are authorized to be appropriated to
carry out section 932--
(1) $213,000,000 for fiscal year 2007, of which
$100,000,000 shall be for section 932 (d);
(2) $251,000,000 for fiscal year 2008, of which
$125,000,000 shall be for section 932 (d); and
(3) $274,000,000 for fiscal year 2009, of which
$150,000,000 shall be for section 932 (d).
(d) Solar Power.--From amounts authorized under subsection
(b), there is authorized to be appropriated to carry out
activities under subsection (a)(2)(A)--
(1) $140,000,000 for fiscal year 2007, of which
$40,000,000 shall be for activities under section 935;
(2) $200,000,000 for fiscal year 2008, of which
$50,000,000 shall be for activities under section 935;
and
(3) $250,000,000 for fiscal year 2009, of which
$50,000,000 shall be for activities under section 935.
(e) Administration.--Of the funds authorized under
subsection (c), not less than $5,000,000 for each fiscal year
shall be made available for grants to--
(1) part B institutions;
(2) Tribal Colleges or Universities (as defined in
section 316(b) of the Higher Education Act of 1965 (20
U.S.C. 1059c(b))); and
(3) Hispanic-serving institutions.
(f) Rural Demonstration Projects.--In carrying out this
section, the Secretary, in consultation with the Secretary of
Agriculture, shall demonstrate the use of renewable energy
technologies to assist in delivering electricity to rural and
remote locations including--
(1) advanced wind power technology, including
combined use with coal gasification;
(2) biomass; and
(3) geothermal energy systems.
(g) Analysis and Evaluation.--
(1) In general.--The Secretary shall conduct
analysis and evaluation in support of the renewable
energy programs under this subtitle. These activities
shall be used to guide budget and program decisions,
and shall include--
(A) economic and technical analysis of
renewable energy potential, including resource
assessment;
(B) analysis of past program performance,
both in terms of technical advances and in
market introduction of renewable energy; and
(C) any other analysis or evaluation that
the Secretary considers appropriate.
(2) Funding.--The Secretary may designate up to 1
percent of the funds appropriated for carrying out this
subtitle for analysis and evaluation activities under
this subsection.
SEC. 932. BIOENERGY PROGRAM.
(a) Definitions.--In this section:
(1) Biomass.--The term ``biomass'' means--
(A) any organic material grown for the
purpose of being converted to energy;
(B) any organic byproduct of agriculture
(including wastes from food production and
processing) that can be converted into energy;
or
(C) any waste material that can be
converted to energy, is segregated from other
waste materials, and is derived from--
(i) any of the following forest-
related resources: mill residues,
precommercial thinnings, slash, brush,
or otherwise nonmerchantable material;
or
(ii) 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, gas
derived from the biodegradation of
municipal solid waste, or paper that is
commonly recycled.
(2) Lignocellulosic feedstock.--The term
``lignocellulosic feedstock'' means any portion of a
plant or coproduct from conversion, including crops,
trees, forest residues, and agricultural residues not
specifically grown for food, including from barley
grain, grapeseed, rice bran, rice hulls, rice straw,
soybean matter, and sugarcane bagasse.
(b) Program.--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.
(c) Biofuels and Bioproducts.--The goals of the biofuels
and bioproducts programs shall be to develop, in partnership
with industry and institutions of higher education--
(1) advanced biochemical and thermochemical
conversion technologies capable of making fuels from
lignocellulosic feedstocks that are price-competitive
with gasoline or diesel in either internal combustion
engines or fuel cell-powered vehicles;
(2) advanced biotechnology processes capable of
making biofuels and bioproducts with emphasis on
development of biorefinery technologies using enzyme-
based processing systems;
(3) advanced biotechnology processes capable of
increasing energy production from lignocellulosic
feedstocks, with emphasis on reducing the dependence of
industry on fossil fuels in manufacturing facilities;
and
(4) other advanced processes that will enable the
development of cost-effective bioproducts, including
biofuels.
(d) Integrated Biorefinery Demonstration Projects.--
(1) In general.--The Secretary shall carry out a
program to demonstrate the commercial application of
integrated biorefineries. The Secretary shall ensure
geographical distribution of biorefinery demonstrations
under this subsection. The Secretary shall not provide
more than $100,000,000 under this subsection for any
single biorefinery demonstration. In making awards
under this subsection, the Secretary shall encourage--
(A) the demonstration of a wide variety of
lignocellulosic feedstocks;
(B) the commercial application of biomass
technologies for a variety of uses, including--
(i) liquid transportation fuels;
(ii) high-value biobased chemicals;
(iii) substitutes for petroleum-
based feedstocks and products; and
(iv) energy in the form of
electricity or useful heat; and
(C) the demonstration of the collection and
treatment of a variety of biomass feedstocks.
(2) Proposals.--Not later than 6 months after the
date of enactment of this Act, the Secretary shall
solicit proposals for demonstration of advanced
biorefineries. The Secretary shall select only
proposals that--
(A) demonstrate that the project will be
able to operate profitably without direct
Federal subsidy after initial construction
costs are paid; and
(B) enable the biorefinery to be easily
replicated.
(e) University Biodiesel Program.--The Secretary shall
establish a demonstration program to determine the feasibility
of the operation of diesel electric power generators, using
biodiesel fuels with ratings as high as B100, at electric
generation facilities owned by institutions of higher
education. The program shall examine--
(1) heat rates of diesel fuels with large
quantities of cellulosic content;
(2) the reliability of operation of various fuel
blends;
(3) performance in cold or freezing weather;
(4) stability of fuel after extended storage; and
(5) other criteria, as determined by the Secretary.
SEC. 933. LOW-COST RENEWABLE HYDROGEN AND INFRASTRUCTURE FOR VEHICLE
PROPULSION.
The Secretary shall--
(1) establish a research, development, and
demonstration program to determine the feasibility of
using hydrogen propulsion in light-weight vehicles and
the integration of the associated hydrogen production
infrastructure using off-the-shelf components; and
(2) identify universities and institutions that--
(A) have expertise in researching and
testing vehicles fueled by hydrogen, methane,
and other fuels;
(B) have expertise in integrating off-the-
shelf components to minimize cost; and
(C) within 2 years can test a vehicle based
on an existing commercially available platform
with a curb weight of not less than 2,000
pounds before modifications, that--
(i) operates solely on hydrogen;
(ii) qualifies as a light-duty
passenger vehicle; and
(iii) uses hydrogen produced from
water using only solar energy.
SEC. 934. CONCENTRATING SOLAR POWER RESEARCH PROGRAM.
(a) In General.--The Secretary shall conduct a program of
research and development to evaluate the potential for
concentrating solar power for hydrogen production, including
cogeneration approaches for both hydrogen and electricity.
(b) Administration.--The program shall take advantage of
existing facilities to the extent practicable and shall
include--
(1) development of optimized technologies that are
common to both electricity and hydrogen production;
(2) evaluation of thermochemical cycles for
hydrogen production at the temperatures attainable with
concentrating solar power;
(3) evaluation of materials issues for the
thermochemical cycles described in paragraph (2);
(4) cogeneration of solar thermal electric power
and photo-synthetic-based hydrogen production;
(5) system architectures and economics studies; and
(6) coordination with activities under the Next
Generation Nuclear Plant Project established under
subtitle C of title VI on high temperature materials,
thermochemical cycles, and economic issues.
(c) Assessment.--In carrying out the program under this
section, the Secretary shall--
(1) assess conflicting guidance on the economic
potential of concentrating solar power for electricity
production received from the National Research Council
in the report entitled ``Renewable Power Pathways: A
Review of the U.S. Department of Energy's Renewable
Energy Programs'' and dated 2000 and subsequent reviews
of that report funded by the Department; and
(2) provide an assessment of the potential impact
of technology used to concentrate solar power for
electricity before, or concurrent with, submission of
the budget for fiscal year 2008.
(d) Report.--Not later than 5 years after the date of
enactment of this Act, the Secretary shall provide to Congress
a report on the economic and technical potential for
electricity or hydrogen production, with or without
cogeneration, with concentrating solar power, including the
economic and technical feasibility of potential construction of
a pilot demonstration facility suitable for commercial
production of electricity or hydrogen from concentrating solar
power.
SEC. 935. RENEWABLE ENERGY IN PUBLIC BUILDINGS.
(a) Demonstration and Technology Transfer Program.--The
Secretary shall establish a program for the demonstration of
innovative technologies for solar and other renewable energy
sources in buildings owned or operated by a State or local
government, and for the dissemination of information resulting
from such demonstration to interested parties.
(b) Limit on Federal Funding.--Notwithstanding section 988,
the Secretary shall provide under this section no more than 40
percent of the incremental costs of the solar or other
renewable energy source project funded.
(c) Requirements.--As part of the application for awards
under this section, the Secretary shall require all
applicants---
(1) to demonstrate a continuing commitment to the
use of solar and other renewable energy sources in
buildings they own or operate; and
(2) to state how they expect any award to further
their transition to the significant use of renewable
energy.
Subtitle D--Agricultural Biomass Research and Development Programs
SEC. 941. AMENDMENTS TO THE BIOMASS RESEARCH AND DEVELOPMENT ACT OF
2000.
(a) Definitions.--Section 303 of the Biomass Research and
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101
note) is amended--
(1) by striking paragraphs (2), (9), and (10);
(2) by redesignating paragraphs (3), (4), (5), (6),
(7), and (8) as paragraphs (4), (5), (7), (8), (9), and
(10), respectively;
(3) by inserting after paragraph (1) the following:
``(2) Biobased fuel.--The term `biobased fuel'
means any transportation fuel produced from biomass.
``(3) Biobased product.--The term `biobased
product' means an industrial product (including
chemicals, materials, and polymers) produced from
biomass, or a commercial or industrial product
(including animal feed and electric power) derived in
connection with the conversion of biomass to fuel.'';
(4) by inserting after paragraph (5) (as
redesignated by paragraph (2)) the following:
``(6) Demonstration.--The term `demonstration'
means demonstration of technology in a pilot plant or
semi-works scale facility.''; and
(5) by striking paragraph (9) (as redesignated by
paragraph (2)) and inserting the following:
``(9) National laboratory.--The term `National
Laboratory' has the meaning given that term in section
2 of the Energy Policy Act of 2005.''.
(b) Cooperation and Coordination in Biomass Research and
Development.--Section 304 of the Biomass Research and
Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101
note) is amended--
(1) in subsections (a) and (d), by striking
``industrial products'' each place it appears and
inserting ``fuels and biobased products'';
(2) by striking subsections (b) and (c); and
(3) by redesignating subsection (d) as subsection
(b).
(c) Biomass Research and Development Board.--Section 305 of
the Biomass Research and Development Act of 2000 (Public Law
106-224; 7 U.S.C. 8101 note) is amended--
(1) in subsections (a) and (c), by striking
``industrial products'' each place it appears and
inserting ``fuels and biobased products'';
(2) in subsection (b)--
(A) in paragraph (1), by striking
``304(d)(1)(B)'' and inserting
``304(b)(1)(B)''; and
(B) in paragraph (2), by striking
``304(d)(1)(A)'' and inserting
``304(b)(1)(A)''; and
(3) in subsection (c)--
(A) in paragraph (1)(B), by striking
``and'' at the end;
(B) in paragraph (2), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following:
``(3) ensure that--
``(A) solicitations are open and
competitive with awards made annually; and
``(B) objectives and evaluation criteria of
the solicitations are clearly stated and
minimally prescriptive, with no areas of
special interest; and
``(4) ensure that the panel of scientific and
technical peers assembled under section 307(g)(1)(C) to
review proposals is composed predominantly of
independent experts selected from outside the
Departments of Agriculture and Energy.''.
(d) Biomass Research and Development Technical Advisory
Committee.--Section 306 of the Biomass Research and Development
Act of 2000 (Public Law 106-224; 7 U.S.C. 8101 note) is
amended--
(1) in subsection (b)(1)--
(A) in subparagraph (A), by striking
``biobased industrial products'' and inserting
``biofuels'';
(B) by redesignating subparagraphs (B)
through (J) as subparagraphs (C) through (K),
respectively;
(C) by inserting after subparagraph (A) the
following:
``(B) an individual affiliated with the
biobased industrial and commercial products
industry;'';
(D) in subparagraph (F) (as redesignated by
subparagraph (B)) by striking ``an individual
has'' and inserting ``2 individuals have'';
(E) in subparagraphs (C), (D), (G), and (I)
(as redesignated by subparagraph (B)) by
striking ``industrial products'' each place it
appears and inserting ``fuels and biobased
products''; and
(F) in subparagraph (H) (as redesignated by
subparagraph (B)), by inserting ``and
environmental'' before ``analysis'';
(2) in subsection (c)(2)--
(A) in subparagraph (A), by striking
``goals'' and inserting ``objectives, purposes,
and considerations'';
(B) by redesignating subparagraphs (B) and
(C) as subparagraphs (C) and (D), respectively;
(C) by inserting after subparagraph (A) the
following:
``(B) solicitations are open and
competitive with awards made annually and that
objectives and evaluation criteria of the
solicitations are clearly stated and minimally
prescriptive, with no areas of special
interest;''; and
(D) in subparagraph (C) (as redesignated by
subparagraph (B)) by inserting ``predominantly
from outside the Departments of Agriculture and
Energy'' after ``technical peers''.
(e) Biomass Research and Development Initiative.--Section
307 of the Biomass Research and Development Act of 2000 (Public
Law 106-224; 7 U.S.C. 8101 note) is amended--
(1) in subsection (a), by striking ``research on
biobased industrial products'' and inserting ``research
on, and development and demonstration of, biobased
fuels and biobased products, and the methods, practices
and technologies, for their production''; and
(2) by striking subsections (b) through (e) and
inserting the following:
``(b) Objectives.--The objectives of the Initiative are to
develop--
``(1) technologies and processes necessary for
abundant commercial production of biobased fuels at
prices competitive with fossil fuels;
``(2) high-value biobased products--
``(A) to enhance the economic viability of
biobased fuels and power; and
``(B) as substitutes for petroleum-based
feedstocks and products; and
``(3) a diversity of sustainable domestic sources
of biomass for conversion to biobased fuels and
biobased products.
``(c) Purposes.--The purposes of the Initiative are--
``(1) to increase the energy security of the United
States;
``(2) to create jobs and enhance the economic
development of the rural economy;
``(3) to enhance the environment and public health;
and
``(4) to diversify markets for raw agricultural and
forestry products.
``(d) Technical Areas.--To advance the objectives and
purposes of the Initiative, the Secretary of Agriculture and
the Secretary of Energy, in consultation with the Administrator
of the Environmental Protection Agency and heads of other
appropriate departments and agencies (referred to in this
section as the `Secretaries'), shall direct research and
development toward--
``(1) feedstock production through the development
of crops and cropping systems relevant to production of
raw materials for conversion to biobased fuels and
biobased products, including--
``(A) development of advanced and dedicated
crops with desired features, including enhanced
productivity, broader site range, low
requirements for chemical inputs, and enhanced
processing;
``(B) advanced crop production methods to
achieve the features described in subparagraph
(A);
``(C) feedstock harvest, handling,
transport, and storage; and
``(D) strategies for integrating feedstock
production into existing managed land;
``(2) overcoming recalcitrance of cellulosic
biomass through developing technologies for converting
cellulosic biomass into intermediates that can
subsequently be converted into biobased fuels and
biobased products, including--
``(A) pretreatment in combination with
enzymatic or microbial hydrolysis; and
``(B) thermochemical approaches, including
gasification and pyrolysis;
``(3) product diversification through technologies
relevant to production of a range of biobased products
(including chemicals, animal feeds, and cogenerated
power) that eventually can increase the feasibility of
fuel production in a biorefinery, including--
``(A) catalytic processing, including
thermochemical fuel production;
``(B) metabolic engineering, enzyme
engineering, and fermentation systems for
biological production of desired products or
cogeneration of power;
``(C) product recovery;
``(D) power production technologies; and
``(E) integration into existing biomass
processing facilities, including starch ethanol
plants, paper mills, and power plants; and
``(4) analysis that provides strategic guidance for
the application of biomass technologies in accordance
with realization of improved sustainability and
environmental quality, cost effectiveness, security,
and rural economic development, usually featuring
system-wide approaches.
``(e) Additional Considerations.--Within the technical
areas described in subsection (d), and in addition to advancing
the purposes described in subsection (c) and the objectives
described in subsection (b), the Secretaries shall support
research and development--
``(1) to create continuously expanding
opportunities for participants in existing biofuels
production by seeking synergies and continuity with
current technologies and practices, such as the use of
dried distillers grains as a bridge feedstock;
``(2) to maximize the environmental, economic, and
social benefits of production of biobased fuels and
biobased products on a large scale through life-cycle
economic and environmental analysis and other means;
and
``(3) to assess the potential of Federal land and
land management programs as feedstock resources for
biobased fuels and biobased products, consistent with
the integrity of soil and water resources and with
other environmental considerations.
``(f) Eligible Entities.--To be eligible for a grant,
contract, or assistance under this section, an applicant shall
be--
``(1) an institution of higher education;
``(2) a National Laboratory;
``(3) a Federal research agency;
``(4) a State research agency;
``(5) a private sector entity;
``(6) a nonprofit organization; or
``(7) a consortium of 2 of more entities described
in paragraphs (1) through (6).
``(g) Administration.--
``(1) In general.--After consultation with the
Board, the points of contact shall--
``(A) publish annually 1 or more joint
requests for proposals for grants, contracts,
and assistance under this section;
``(B) require that grants, contracts, and
assistance under this section be awarded
competitively, on the basis of merit, after the
establishment of procedures that provide for
scientific peer review by an independent panel
of scientific and technical peers; and
``(C) give some preference to applications
that--
``(i) involve a consortia of
experts from multiple institutions;
``(ii) encourage the integration of
disciplines and application of the best
technical resources; and
``(iii) increase the geographic
diversity of demonstration projects.
``(2) Distribution of funding by technical area.--
Of the funds authorized to be appropriated for
activities described in this section, funds shall be
distributed for each of fiscal years 2007 through 2010
so as to achieve an approximate distribution of--
``(A) 20 percent of the funds to carry out
activities for feedstock production under
subsection (d)(1);
``(B) 45 percent of the funds to carry out
activities for overcoming recalcitrance of
cellulosic biomass under subsection (d)(2);
``(C) 30 percent of the funds to carry out
activities for product diversification under
subsection (d)(3); and
``(D) 5 percent of the funds to carry out
activities for strategic guidance under
subsection (d)(4).
``(3) Distribution of funding within each technical
area.--Within each technical area described in
paragraphs (1) through (3) of subsection (d), funds
shall be distributed for each of fiscal years 2007
through 2010 so as to achieve an approximate
distribution of--
``(A) 15 percent of the funds for applied
fundamentals;
``(B) 35 percent of the funds for
innovation; and
``(C) 50 percent of the funds for
demonstration.
``(4) Matching funds.--
``(A) In general.--A minimum 20 percent
funding match shall be required for
demonstration projects under this title.
``(B) Commercial applications.--A minimum
of 50 percent funding match shall be required
for commercial application projects under this
title.
``(5) Technology and information transfer to
agricultural users.--The Administrator of the
Cooperative State Research, Education, and Extension
Service and the Chief of the Natural Resources
Conservation Service shall ensure that applicable
research results and technologies from the Initiative
are adapted, made available, and disseminated through
those services, as appropriate.''.
(f) Annual Reports.--Section 309 of the Biomass Research
and Development Act of 2000 (Public Law 106-224; 7 U.S.C. 8101
note) is amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by
striking ``purposes described in
section 307(b)'' and inserting
``objectives, purposes, and additional
considerations described in subsections
(b) through (e) of section 307'';
(ii) in subparagraph (B), by
striking ``and'' at the end;
(iii) by redesignating subparagraph
(C) as subparagraph (D); and
(iv) by inserting after
subparagraph (B) the following:
``(C) achieves the distribution of funds
described in paragraphs (2) and (3) of section
307(g); and''; and
(B) in paragraph (2), by striking
``industrial products'' and inserting ``fuels
and biobased products''; and
(2) by adding at the end the following:
``(c) Updates.--The Secretary and the Secretary of Energy
shall update the Vision and Roadmap documents prepared for
Federal biomass research and development activities.''.
(g) Authorization of Appropriations.--Section 310(b) of the
Biomass Research and Development Act of 2000 (Public Law 106-
224; 7 U.S.C. 8101 note) is amended by striking ``title
$54,000,000 for each of fiscal years 2002 through 2007'' and
inserting ``title $200,000,000 for each of fiscal years 2006
through 2015''.
(h) Repeal of Sunset Provision.--Section 311 of the Biomass
Research and Development Act of 2000 (Public Law 106-224; 7
U.S.C. 8101 note) is repealed.
SEC. 942. PRODUCTION INCENTIVES FOR CELLULOSIC BIOFUELS.
(a) Purpose.--The purpose of this section is to--
(1) accelerate deployment and commercialization of
biofuels;
(2) deliver the first 1,000,000,000 gallons in
annual cellulosic biofuels production by 2015;
(3) ensure biofuels produced after 2015 are cost
competitive with gasoline and diesel; and
(4) ensure that small feedstock producers and rural
small businesses are full participants in the
development of the cellulosic biofuels industry.
(b) Definitions.--In this section:
(1) Cellulosic biofuels.--The term ``cellulosic
biofuels'' means any fuel that is produced from
cellulosic feedstocks.
(2) Eligible entity.--The term ``eligible entity''
means a producer of fuel from cellulosic biofuels the
production facility of which--
(A) is located in the United States;
(B) meets all applicable Federal and State
permitting requirements; and
(C) meets any financial criteria
established by the Secretary.
(c) Program.--
(1) Establishment.--The Secretary, in consultation
with the Secretary of Agriculture, the Secretary of
Defense, and the Administrator of the Environmental
Protection Agency, shall establish an incentive program
for the production of cellulosic biofuels.
(2) Basis of incentives.--Under the program, the
Secretary shall award production incentives on a per
gallon basis of cellulosic biofuels from eligible
entities, through--
(A) set payments per gallon of cellulosic
biofuels produced in an amount determined by
the Secretary, until initiation of the first
reverse auction; and
(B) reverse auction thereafter.
(3) First reverse auction.--The first reverse
auction shall be held on the earlier of--
(A) not later than 1 year after the first
year of annual production in the United States
of 100,000,000 gallons of cellulosic biofuels,
as determined by the Secretary; or
(B) not later than 3 years after the date
of enactment of this Act.
(4) Reverse auction procedure.--
(A) In general.--On initiation of the first
reverse auction, and each year thereafter until
the earlier of the first year of annual
production in the United States of
1,000,000,000 gallons of cellulosic biofuels,
as determined by the Secretary, or 10 years
after the date of enactment of this Act, the
Secretary shall conduct a reverse auction at
which--
(i) the Secretary shall solicit
bids from eligible entities;
(ii) eligible entities shall
submit--
(I) a desired level of
production incentive on a per
gallon basis; and
(II) an estimated annual
production amount in gallons;
and
(iii) the Secretary shall issue
awards for the production amount
submitted, beginning with the eligible
entity submitting the bid for the
lowest level of production incentive on
a per gallon basis and meeting such
other criteria as are established by
the Secretary, until the amount of
funds available for the reverse auction
is committed.
(B) Amount of incentive received.--An
eligible entity selected by the Secretary
through a reverse auction shall receive the
amount of performance incentive requested in
the auction for each gallon produced and sold
by the entity during the first 6 years of
operation.
(C) Commencement of production of
cellulosic biofuels.--As a condition of the
receipt of an award under this section, an
eligible entity shall enter into an agreement
with the Secretary under which the eligible
entity agrees to begin production of cellulosic
biofuels not later than 3 years after the date
of the reverse auction in which the eligible
entity participates.
(d) Limitations.--Awards under this section shall be
limited to--
(1) a per gallon amount determined by the Secretary
during the first 4 years of the program;
(2) a declining per gallon cap over the remaining
lifetime of the program, to be established by the
Secretary so that cellulosic biofuels produced after
the first year of annual cellulosic biofuels production
in the United States in excess of 1,000,000,000 gallons
are cost competitive with gasoline and diesel;
(3) not more than 25 percent of the funds committed
within each reverse auction to any 1 project;
(4) not more than $100,000,000 in any 1 year; and
(5) not more than $1,000,000,000 over the lifetime
of the program.
(e) Priority.--In selecting a project under the program,
the Secretary shall give priority to projects that--
(1) demonstrate outstanding potential for local and
regional economic development;
(2) include agricultural producers or cooperatives
of agricultural producers as equity partners in the
ventures; and
(3) have a strategic agreement in place to fairly
reward feedstock suppliers.
(f) Authorizations of Appropriations.--There is authorized
to be appropriated to carry out this section $250,000,000.
SEC. 943. PROCUREMENT OF BIOBASED PRODUCTS.
(a) Federal Procurement.--
(1) Definition of procuring agency.--Section 9001
of the Farm Security and Rural Investment Act of 2002
(7 U.S.C. 8101) is amended--
(A) by redesignating paragraphs (4), (5),
and (6) as paragraphs (5), (6), and (7),
respectively; and
(B) by inserting after paragraph (3) the
following:
``(4) Procuring agency.--The term `procuring
agency' means--
``(A) any Federal agency that is using
Federal funds for procurement; or
``(B) any person contracting with any
Federal agency with respect to work performed
under the contract.''.
(2) Procurement.--Section 9002 of the Farm Security
and Rural Investment Act of 2002 (7 U.S.C. 8102) is
amended--
(A) by striking ``Federal agency'' each
place it appears (other than in subsections (f)
and (g)) and inserting ``procuring agency'';
(B) in subsection (c)(2)--
(i) by striking ``(2)'' and all
that follows through
``Notwithstanding'' and inserting the
following:
``(2) Flexibility.--Notwithstanding'';
(ii) by striking ``an agency'' and
inserting ``a procuring agency''; and
(iii) by striking ``the agency''
and inserting ``the procuring agency'';
(C) in subsection (d), by striking
``procured by Federal agencies'' and inserting
``procured by procuring agencies''; and
(D) in subsection (f), by striking
``Federal agencies'' and inserting ``procuring
agencies'' .
(b) Capitol Complex Procurement.--Section 9002 of the Farm
Security and Rural Investment Act of 2002 (7 U.S.C. 8102) (as
amended by subsection (a)(2)) is amended--
(1) by redesignating subsection (j) as subsection
(k); and
(2) by inserting after subsection (i) the
following:
``(j) Inclusion.--Not later than 90 days after the date of
enactment of the Energy Policy Act of 2005, the Architect of
the Capitol, the Sergeant at Arms of the Senate, and the Chief
Administrative Officer of the House of Representatives shall
establish procedures that apply the requirements of this
section to procurement for the Capitol Complex.''.
(c) Education.--
(1) In general.--The Architect of the Capitol shall
establish in the Capitol Complex a program of public
education regarding use by the Architect of the Capitol
of biobased products.
(2) Purposes.--The purposes of the program shall
be--
(A) to establish the Capitol Complex as a
showcase for the existence and benefits of
biobased products; and
(B) to provide access to further
information on biobased products to occupants
and visitors.
(d) Procedure.--Requirements issued under the amendments
made by subsection (b) shall be made in accordance with
directives issued by the Committee on Rules and Administration
of the Senate and the Committee on House Administration of the
House of Representatives.
SEC. 944. SMALL BUSINESS BIOPRODUCT MARKETING AND CERTIFICATION GRANTS.
(a) In General.--Using amounts made available under
subsection (g), the Secretary of Agriculture (referred to in
this section as the ``Secretary'') shall make available on a
competitive basis grants to eligible entities described in
subsection (b) for the biobased product marketing and
certification purposes described in subsection (c).
(b) Eligible Entities.--
(1) In general.--An entity eligible for a grant
under this section is any manufacturer of biobased
products that--
(A) proposes to use the grant for the
biobased product marketing and certification
purposes described in subsection (c); and
(B) has not previously received a grant
under this section.
(2) Preference.--In making grants under this
section, the Secretary shall provide a preference to an
eligible entity that has fewer than 50 employees.
(c) Biobased Product Marketing and Certification Grant
Purposes.--A grant made under this section shall be used--
(1) to provide working capital for marketing of
biobased products; and
(2) to provide for the certification of biobased
products to--
(A) qualify for the label described in
section 9002(h)(1) of the Farm Security and
Rural Investment Act of 2002 (7 U.S.C.
8102(h)(1)); or
(B) meet other biobased standards
determined appropriate by the Secretary.
(d) Matching Funds.--
(1) In general.--Grant recipients shall provide
matching non-Federal funds equal to the amount of the
grant received.
(2) Expenditure.--Matching funds shall be expended
in advance of grant funding, so that for every dollar
of grant that is advanced, an equal amount of matching
funds shall have been funded prior to submitting the
request for reimbursement.
(e) Amount.--A grant made under this section shall not
exceed $100,000.
(f) Administration.--The Secretary shall establish such
administrative requirements for grants under this section,
including requirements for applications for the grants, as the
Secretary considers appropriate.
(g) Authorizations of Appropriations.--There are authorized
to be appropriated to make grants under this section--
(1) $1,000,000 for fiscal year 2006; and
(2) such sums as are necessary for each of fiscal
years 2007 through 2015.
SEC. 945. REGIONAL BIOECONOMY DEVELOPMENT GRANTS.
(a) In General.--Using amounts made available under
subsection (g), the Secretary of Agriculture (referred to in
this section as the ``Secretary'') shall make available on a
competitive basis grants to eligible entities described in
subsection (b) for the purposes described in subsection (c).
(b) Eligible Entities.--An entity eligible for a grant
under this section is any regional bioeconomy development
association, agricultural or energy trade association, or Land
Grant institution that--
(1) proposes to use the grant for the purposes
described in subsection (c); and
(2) has not previously received a grant under this
section.
(c) Regional Bioeconomy Development Association Grant
Purposes.--A grant made under this section shall be used to
support and promote the growth and development of the
bioeconomy within the region served by the eligible entity,
through coordination, education, outreach, and other endeavors
by the eligible entity.
(d) Matching Funds.--
(1) In general.--Grant recipients shall provide
matching non-Federal funds equal to the amount of the
grant received.
(2) Expenditure.--Matching funds shall be expended
in advance of grant funding, so that for every dollar
of grant that is advanced, an equal amount of matching
funds shall have been funded prior to submitting the
request for reimbursement.
(e) Administration.--The Secretary shall establish such
administrative requirements for grants under this section,
including requirements for applications for the grants, as the
Secretary considers appropriate.
(f) Amount.--A grant made under this section shall not
exceed $500,000.
(g) Authorizations of Appropriations.--There are authorized
to be appropriated to make grants under this section--
(1) $1,000,000 for fiscal year 2006; and
(2) such sums as are necessary for each of fiscal
years 2007 through 2015.
SEC. 946. PREPROCESSING AND HARVESTING DEMONSTRATION GRANTS.
(a) In General.--The Secretary of Agriculture (referred to
in this section as the ``Secretary'') shall make grants
available on a competitive basis to enterprises owned by
agricultural producers, for the purposes of demonstrating cost-
effective, cellulosic biomass innovations in--
(1) preprocessing of feedstocks, including
cleaning, separating and sorting, mixing or blending,
and chemical or biochemical treatments, to add value
and lower the cost of feedstock processing at a
biorefinery; or
(2) 1-pass or other efficient, multiple crop
harvesting techniques.
(b) Limitations on Grants.--
(1) Number of grants.--Not more than 5
demonstration projects per fiscal year shall be funded
under this section.
(2) Non-federal cost share.--The non-Federal cost
share of a project under this section shall be not less
than 20 percent, as determined by the Secretary.
(c) Condition of Grant.--To be eligible for a grant for a
project under this section, a recipient of a grant or a
participating entity shall agree to use the material harvested
under the project--
(1) to produce ethanol; or
(2) for another energy purpose, such as the
generation of heat or electricity.
(d) Authorization for Appropriations.--There is authorized
to be appropriated to carry out this section $5,000,000 for
each of fiscal years 2006 through 2010.
SEC. 947. EDUCATION AND OUTREACH.
(a) In General.--The Secretary of Agriculture shall
establish, within the Department of Agriculture or through an
independent contracting entity, a program of education and
outreach on biobased fuels and biobased products consisting
of--
(1) training and technical assistance programs for
feedstock producers to promote producer ownership,
investment, and participation in the operation of
processing facilities; and
(2) public education and outreach to familiarize
consumers with the biobased fuels and biobased
products.
(b) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,000,000 for
each of fiscal years 2006 through 2010.
SEC. 948. REPORTS.
(a) Biobased Product Potential.--Not later than 1 year
after the date of enactment of this Act, the Secretary of
Agriculture (referred to in this section as the ``Secretary'')
shall submit to the Committee on Agriculture of the House of
Representatives and the Committee on Agriculture, Nutrition,
and Forestry of the Senate a report that--
(1) describes the economic potential for the United
States of the widespread production and use of
commercial and industrial biobased products through
calendar year 2025; and
(2) as the maximum extent practicable, identifies
the economic potential by product area.
(b) Analysis of Economic Indicators.--Not later than 2
years after the date of enactment of this Act, the Secretary
shall submit to Congress an analysis of economic indicators of
the biobased economy.
Subtitle E--Nuclear Energy
SEC. 951. NUCLEAR ENERGY.
(a) In General.--The Secretary shall conduct programs of
civilian nuclear energy research, development, demonstration,
and commercial application, including activities described in
this subtitle. Programs under this subtitle shall take into
consideration the following objectives:
(1) Enhancing nuclear power's viability as part of
the United States energy portfolio.
(2) Providing the technical means to reduce the
likelihood of nuclear proliferation.
(3) Maintaining a cadre of nuclear scientists and
engineers.
(4) Maintaining National Laboratory and university
nuclear programs, including their infrastructure.
(5) Supporting both individual researchers and
multidisciplinary teams of researchers to pioneer new
approaches in nuclear energy, science, and technology.
(6) Developing, planning, constructing, acquiring,
and operating special equipment and facilities for the
use of researchers.
(7) Supporting technology transfer and other
appropriate activities to assist the nuclear energy
industry, and other users of nuclear science and
engineering, including activities addressing
reliability, availability, productivity, component
aging, safety, and security of nuclear power plants.
(8) Reducing the environmental impact of nuclear
energy-related activities.
(b) Authorization of Appropriations for Core Programs.--
There are authorized to be appropriated to the Secretary to
carry out nuclear energy research, development, demonstration,
and commercial application activities, including activities
authorized under this subtitle, other than those described in
subsection (c)--
(1) $330,000,000 for fiscal year 2007;
(2) $355,000,000 for fiscal year 2008; and
(3) $495,000,000 for fiscal year 2009.
(c) Nuclear Infrastructure and Facilities.--There are
authorized to be appropriated to the Secretary to carry out
activities under section 955--
(1) $135,000,000 for fiscal year 2007;
(2) $140,000,000 for fiscal year 2008; and
(3) $145,000,000 for fiscal year 2009.
(d) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 953--
(A) $150,000,000 for fiscal year 2007;
(B) $155,000,000 for fiscal year 2008; and
(C) $275,000,000 for fiscal year 2009.
(2) For activities under section 954--
(A) $43,600,000 for fiscal year 2007;
(B) $50,100,000 for fiscal year 2008; and
(C) $56,000,000 for fiscal year 2009.
(3) For activities under section 957, $6,000,000
for each of fiscal years 2007 through 2009.
(e) Limitation.--None of the funds authorized under this
section may be used to decommission the Fast Flux Test
Facility.
SEC. 952. 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 Systems Support Program.--The Secretary
shall carry out a Nuclear Energy Systems Support 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.--
(1) In general.--The Secretary shall carry out a
Nuclear Power 2010 Program, consistent with
recommendations of the Nuclear Energy Research Advisory
Committee of the Department in the report entitled ``A
Roadmap to Deploy New Nuclear Power Plants in the
United States by 2010'' and dated October 2001.
(2) Administration.--The Program shall include--
(A) use of the expertise and capabilities
of industry, institutions of higher education,
and National Laboratories in evaluation of
advanced nuclear fuel cycles and fuels testing;
(B) consideration of a variety of reactor
designs suitable for both developed and
developing nations;
(C) participation of international
collaborators in research, development, and
design efforts, as appropriate; and
(D) encouragement for participation by
institutions of higher education and industry.
(d) Generation IV Nuclear Energy Systems Initiative.--
(1) In general.--The Secretary shall carry out a
Generation IV Nuclear Energy Systems Initiative to
develop an overall technology plan for and to support
research and development necessary to make an informed
technical decision about the most promising candidates
for eventual commercial application.
(2) Administration.--In conducting the Initiative,
the Secretary shall examine advanced proliferation-
resistant and passively safe reactor designs, including
designs that--
(A) are economically competitive with other
electric power generation plants;
(B) have higher efficiency, lower cost, and
improved safety compared to reactors in
operation on the date of enactment of this Act;
(C) use fuels that are proliferation
resistant and have substantially reduced
production of high-level waste per unit of
output; and
(D) 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.
SEC. 953. ADVANCED FUEL CYCLE INITIATIVE.
(a) In General.--The Secretary, acting through the Director
of the Office of Nuclear Energy, Science and Technology, shall
conduct an advanced fuel recycling technology research,
development, and demonstration program (referred to in this
section as the ``program'') to evaluate proliferation-resistant
fuel recycling and transmutation technologies that minimize
environmental and 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.
(b) Annual Review.--The program shall be subject to annual
review by the Nuclear Energy Research Advisory Committee of the
Department or other independent entity, as appropriate.
(c) International Cooperation.--In carrying out the
program, the Secretary is encouraged to seek opportunities to
enhance the progress of the program through international
cooperation.
(d) Reports.--The Secretary shall submit, as part of the
annual budget submission of the Department, a report on the
activities of the program.
SEC. 954. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.
(a) In General.--The Secretary shall conduct a program to
invest in human resources and infrastructure in the nuclear
sciences and related fields, including health physics, nuclear
engineering, and radiochemistry, consistent with missions of
the Department related to civilian nuclear research,
development, demonstration, and commercial application.
(b) Requirements.--In carrying out the program under this
section, the Secretary shall--
(1) conduct a graduate and undergraduate fellowship
program to attract new and talented students, which may
include fellowships for students to spend time at
National Laboratories in the areas of nuclear science,
engineering, and health physics with a member of the
National Laboratory staff acting as a mentor;
(2) conduct a junior faculty research initiation
grant program to assist universities in recruiting and
retaining new faculty in the nuclear sciences and
engineering by awarding grants to junior faculty for
research on issues related to nuclear energy
engineering and science;
(3) support fundamental nuclear sciences,
engineering, and health physics research through a
nuclear engineering education and research program;
(4) encourage collaborative nuclear research among
industry, National Laboratories, and universities; and
(5) support communication and outreach related to
nuclear science, engineering, and health physics.
(c) University-National Laboratory Interactions.--The
Secretary shall conduct--
(1) a fellowship program for professors at
universities to spend sabbaticals at National
Laboratories in the areas of nuclear science and
technology; and
(2) a visiting scientist program in which National
Laboratory staff can spend time in academic nuclear
science and engineering departments.
(d) Strengthening University Research and Training Reactors
and Associated Infrastructure.--In carrying out the program
under this section, the Secretary may support--
(1) converting research reactors from high-
enrichment fuels to low-enrichment fuels and upgrading
operational instrumentation;
(2) consortia of universities to broaden access to
university research reactors;
(3) student training programs, in collaboration
with the United States nuclear industry, in relicensing
and upgrading reactors, including through the provision
of technical assistance; and
(4) reactor improvements as part of a taking into
consideration effort that emphasizes research,
training, and education, including through the
Innovations in Nuclear Infrastructure and Education
Program or any similar program.
(e) Operations and Maintenance.--Funding for a project
provided under this section may be used for a portion of the
operating and maintenance costs of a research reactor at a
university used in the project.
(f) Definition.--In this section, the term ``junior
faculty'' means a faculty member who was awarded a doctorate
less than 10 years before receipt of an award from the grant
program described in subsection (b)(2).
SEC. 955. DEPARTMENT OF ENERGY CIVILIAN NUCLEAR INFRASTRUCTURE AND
FACILITIES.
(a) In General.--The Secretary shall operate and maintain
infrastructure and facilities to support the nuclear energy
research, development, demonstration, and commercial
application programs, including radiological facilities
management, isotope production, and facilities management.
(b) Duties.--In carrying this section, the Secretary
shall--
(1) develop an inventory of nuclear science and
engineering facilities, equipment, expertise, and other
assets at all of the National Laboratories;
(2) develop a prioritized list of nuclear science
and engineering plant and equipment improvements needed
at each of the National Laboratories;
(3) consider the available facilities and expertise
at all National Laboratories and emphasize investments
which complement rather than duplicate capabilities;
and
(4) develop a timeline and a proposed budget for
the completion of deferred maintenance on plant and
equipment, with the goal of ensuring that Department
programs under this subtitle will be generally
recognized to be among the best in the world.
(c) Plan.--The Secretary shall develop a comprehensive plan
for the facilities at the Idaho National Laboratory, especially
taking into account the resources available at other National
Laboratories. In developing the plan, the Secretary shall--
(1) evaluate the facilities planning processes
utilized by other physical science and engineering
research and development institutions, both in the
United States and abroad, that are generally recognized
as being among the best in the world, and consider how
those processes might be adapted toward developing such
facilities plan;
(2) avoid duplicating, moving, or transferring
nuclear science and engineering facilities, equipment,
expertise, and other assets that currently exist at
other National Laboratories;
(3) consider the establishment of a national
transuranic analytic chemistry laboratory as a user
facility at the Idaho National Laboratory;
(4) include a plan to develop, if feasible, the
Advanced Test Reactor and Test Reactor Area into a user
facility that is more readily accessible to academic
and industrial researchers;
(5) consider the establishment of a fast neutron
source as a user facility;
(6) consider the establishment of new hot cells and
the configuration of hot cells most likely to advance
research, development, demonstration, and commercial
application in nuclear science and engineering,
especially in the context of the condition and
availability of these facilities elsewhere in the
National Laboratories; and
(7) include a timeline and a proposed budget for
the completion of deferred maintenance on plant and
equipment.
(d) Transmittal to Congress.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall transmit
the plan under subsection (c) to Congress.
SEC. 956. SECURITY OF NUCLEAR FACILITIES.
The Secretary, acting 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--
(1) the safety of nuclear facilities from natural
phenomena; and
(2) the security of nuclear facilities from
deliberate attacks.
SEC. 957. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.
(a) Survey.--
(1) In general.--Not later than August 1, 2006, the
Secretary shall submit to Congress the results of a
survey of industrial applications of large radioactive
sources.
(2) Administration.--The survey shall--
(A) consider well-logging sources as 1
class of industrial sources;
(B) include information on current domestic
and international Department, Department of
Defense, State Department, and commercial
programs to manage and dispose of radioactive
sources; and
(C) analyze 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.--
(1) In general.--In conjunction with the survey
conducted under subsection (a), the Secretary shall
establish a research and development program to develop
alternatives to sources described in subsection (a)
that reduce safety, environmental, or proliferation
risks to either workers using the sources or the
public.
(2) Accelerators.--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.
(3) Report.--Not later than August 1, 2006, the
Secretary shall submit to Congress a report describing
the details of the program plan.
Subtitle F--Fossil Energy
SEC. 961. FOSSIL ENERGY.
(a) In General.--The Secretary shall carry out research,
development, demonstration, and commercial application programs
in fossil energy, including activities under this subtitle,
with the goal of improving the efficiency, effectiveness, and
environmental performance of fossil energy production,
upgrading, conversion, and consumption. Such programs take into
consideration the following objectives:
(1) Increasing the energy conversion efficiency of
all forms of fossil energy through improved
technologies.
(2) Decreasing the cost of all fossil energy
production, generation, and delivery.
(3) Promoting diversity of energy supply.
(4) Decreasing the dependence of the United States
on foreign energy supplies.
(5) Improving United States energy security.
(6) Decreasing the environmental impact of energy-
related activities.
(7) Increasing the export of fossil energy-related
equipment, technology, and services from the United
States.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out fossil energy
research, development, demonstration, and commercial
application activities, including activities authorized under
this subtitle--
(1) $611,000,000 for fiscal year 2007;
(2) $626,000,000 for fiscal year 2008; and
(3) $641,000,000 for fiscal year 2009.
(c) Allocations.--From amounts authorized under subsection
(a), the following sums are authorized:
(1) For activities under section 962--
(A) $367,000,000 for fiscal year 2007;
(B) $376,000,000 for fiscal year 2008; and
(C) $394,000,000 for fiscal year 2009.
(2) For activities under section 964--
(A) $20,000,000 for fiscal year 2007;
(B) $25,000,000 for fiscal year 2008; and
(C) $30,000,000 for fiscal year 2009.
(3) For activities under section 966--
(A) $1,500,000 for fiscal year 2007; and
(B) $450,000 for each of fiscal years 2008
and 2009.
(4) For the Office of Arctic Energy under section
3197 of the Floyd D. Spence National Defense
Authorization Act for Fiscal Year 2001 (42 U.S.C.
7144d) $25,000,000 for each of fiscal years 2007
through 2009.
(d) Extended Authorization.--There are authorized to be
appropriated to the Secretary for the Office of Arctic Energy
established under section 3197 of the Floyd D. Spence National
Defense Authorization Act for Fiscal Year 2001 (42 U.S.C.
7144d) $25,000,000 for each of fiscal years 2010 through 2012.
(e) Limitations.--
(1) Uses.--None of the funds authorized under this
section may be used for Fossil Energy Environmental
Restoration or Import/Export Authorization.
(2) Institutions of higher education.--Of the funds
authorized under subsection (c)(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. 962. COAL AND RELATED TECHNOLOGIES PROGRAM.
(a) In General.--In addition to the programs authorized
under title IV, the Secretary shall conduct a program of
technology research, development, 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 (including
mercury removal);
(2) gasification systems;
(3) advanced combustion systems;
(4) turbines for synthesis gas derived from coal;
(5) carbon capture and sequestration research and
development;
(6) coal-derived chemicals and transportation
fuels;
(7) liquid fuels derived from low rank coal water
slurry;
(8) solid fuels and feedstocks;
(9) advanced coal-related research;
(10) advanced separation technologies; and
(11) fuel cells for the operation of synthesis gas
derived from coal.
(b) Cost and Performance Goals.--
(1) In general.--In carrying out programs
authorized by this section, during each of calendar
years 2008, 2010, 2012, and 2016, and during each
fiscal year beginning after September 30, 2021, the
Secretary shall identify cost and performance goals for
coal-based technologies that would permit the continued
cost-competitive use of coal for the production of
electricity, chemical feedstocks, and transportation
fuels.
(2) Administration.--In establishing the cost and
performance goals, the Secretary shall--
(A) consider activities and studies
undertaken as of the date of enactment of this
Act by industry in cooperation with the
Department in support of the identification of
the goals;
(B) consult with interested entities,
including--
(i) coal producers;
(ii) industries using coal;
(iii) organizations that promote
coal and advanced coal technologies;
(iv) environmental organizations;
(v) organizations representing
workers; and
(vi) organizations representing
consumers;
(C) not later than 120 days after the date
of enactment of this Act, publish in the
Federal Register proposed draft cost and
performance goals for public comments; and
(D) not later than 180 days after the date
of enactment of this Act and every 4 years
thereafter, submit to Congress a report
describing the final cost and performance goals
for the technologies that includes--
(i) a list of technical milestones;
and
(ii) an explanation of how programs
authorized in this section will not
duplicate the activities authorized
under the Clean Coal Power Initiative
authorized under title IV.
(c) Powder River Basin and Fort Union Lignite Coal Mercury
Removal.--
(1) In general.--In addition to the programs
authorized by subsection (a), the Secretary shall
establish a program to test and develop technologies to
control and remove mercury emissions from subbituminous
coal mined in the Powder River Basin, and Fort Union
lignite coals, that are used for the generation of
electricity.
(2) Efficacy of mercury removal technology.--In
carrying out the program under paragraph (1), the
Secretary shall examine the efficacy of mercury removal
technologies on coals described in that paragraph that
are blended with other types of coal.
(d) Fuel Cells.--
(1) In general.--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) Demonstrations.--The demonstrations referred to
in paragraph (1) shall include solid oxide fuel cell
technology for commercial, residential, and
transportation applications, and distributed generation
systems, using improved manufacturing production and
processes.
SEC. 963. CARBON CAPTURE RESEARCH AND DEVELOPMENT PROGRAM.
(a) In General.--The Secretary shall carry out a 10-year
carbon capture research and development program to develop
carbon dioxide capture technologies on combustion-based systems
for use--
(1) in new coal utilization facilities; and
(2) on the fleet of coal-based units in existence
on the date of enactment of this Act.
(b) Objectives.--The objectives of the program under
subsection (a) shall be--
(1) to develop carbon dioxide capture technologies,
including adsorption and absorption techniques and
chemical processes, to remove the carbon dioxide from
gas streams containing carbon dioxide potentially
amenable to sequestration;
(2) to develop technologies that would directly
produce concentrated streams of carbon dioxide
potentially amenable to sequestration;
(3) to increase the efficiency of the overall
system to reduce the quantity of carbon dioxide
emissions released from the system per megawatt
generated; and
(4) in accordance with the carbon dioxide capture
program, to promote a robust carbon sequestration
program and continue the work of the Department, in
conjunction with the private sector, through regional
carbon sequestration partnerships.
(c) Authorization of Appropriations.--From amounts
authorized under section 961(b), the following sums are
authorized for activities described in subsection (a)(2):
(1) $25,000,000 for fiscal year 2006;
(2) $30,000,000 for fiscal year 2007; and
(3) $35,000,000 for fiscal year 2008
SEC. 964. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.
(a) Establishment.--The Secretary shall carry out a program
for research and development on coal mining technologies.
(b) Cooperation.--In carrying out the program, 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.
(c) 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, spectroscopic reservoir
analysis technology, and techniques for horizontal
drilling in order to--
(A) identify areas of high coal gas
content;
(B) increase methane recovery efficiency;
(C) prevent spoilage of domestic coal
reserves; and
(D) minimize water disposal associated with
methane extraction; and
(4) expand mining research capabilities at
institutions of higher education.
SEC. 965. OIL AND GAS RESEARCH PROGRAMS.
(a) In General.--The Secretary shall conduct a program of
research, development, demonstration, and commercial
application of 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, oil shale, and tar sands; and
(7) related environmental research.
(b) Objectives.--The objectives of this program shall
include advancing the science and technology available to
domestic petroleum producers, particularly independent
operators, to minimize the economic dislocation caused by the
decline of domestic supplies of oil and natural gas resources.
(c) Natural Gas and Oil Deposits Report.--Not later than 2
years after the date of enactment of this Act and every 2 years
thereafter, the Secretary of the Interior, in consultation with
other appropriate Federal agencies, shall submit to Congress a
report on the latest estimates of natural gas and oil reserves,
reserves growth, and undiscovered resources in Federal and
State waters off the coast of Louisiana, Texas, Alabama, and
Mississippi.
(d) Integrated Clean Power and Energy Research.--
(1) Establishment of center.--The Secretary shall
establish a national center or consortium of excellence
in clean energy and power generation, using the
resources of the Clean Power and Energy Research
Consortium in existence on the date of enactment of
this Act, to address the critical dependence of the
United States on energy and the need to reduce
emissions.
(2) Focus areas.--The center or consortium shall
conduct a program of research, development,
demonstration, and commercial application on
integrating the following 6 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 using alternative fuels and
renewable energy.
(E) Development of advanced materials
technology for oil and gas exploration and use
in harsh environments.
(F) Education on energy and power
generation issues.
SEC. 966. LOW-VOLUME OIL AND GAS RESERVOIR RESEARCH PROGRAM.
(a) Definitions of GIS.--In this section, the term ``GIS''
means geographic information systems technology that
facilitates the organization and management of data with a
geographic component.
(b) Program.--The Secretary shall establish a program of
research, development, demonstration, and commercial
application to maximize the productive capacity of marginal
wells and reservoirs.
(c) Data Collection.--Under the program, the Secretary
shall collect data on--
(1) the status and location of marginal wells and
oil and gas reservoirs;
(2) the production capacity of marginal wells and
oil and gas reservoirs;
(3) the location of low-pressure gathering
facilities and pipelines; and
(4) the quantity of natural gas vented or flared in
association with crude oil production.
(d) Analysis.--Under the program, the Secretary shall--
(1) estimate the remaining producible reserves
based on variable pipeline pressures; and
(2) recommend measures that will enable the
continued production of those resources.
(e) Study.--
(1) In general.--The Secretary may award a grant to
an organization of States that contain significant
numbers of marginal oil and natural gas wells to
conduct an annual study of low-volume natural gas
reservoirs.
(2) Organization with no gis capabilities.--If an
organization receiving a grant under paragraph (1) does
not have GIS capabilities, the organization shall
contract with an institution of higher education with
GIS capabilities.
(3) State geologists.--The organization receiving a
grant under paragraph (1) shall collaborate with the
State geologist of each State being studied.
(f) Public Information.--The Secretary may use the data
collected and analyzed under this section to produce maps and
literature to disseminate to States to promote conservation of
natural gas reserves.
SEC. 967. COMPLEX WELL TECHNOLOGY TESTING FACILITY.
The Secretary, 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.
SEC. 968. METHANE HYDRATE RESEARCH.
(a) In General.--The Methane Hydrate Research and
Development Act of 2000 (30 U.S.C. 1902 note; Public Law 106-
193) is amended to read as follows:
``SECTION 1. SHORT TITLE.
``This Act may be cited as the `Methane Hydrate Research
and Development Act of 2000'.
``SEC. 2. FINDINGS.
``Congress finds that--
``(1) in order to promote energy independence and
meet the increasing demand for energy, the United
States will require a diversified portfolio of
substantially increased quantities of electricity,
natural gas, and transportation fuels;
``(2) according to the report submitted to Congress
by the National Research Council entitled `Charting the
Future of Methane Hydrate Research in the United
States', the total United States resources of gas
hydrates have been estimated to be on the order of
200,000 trillion cubic feet;
``(3) according to the report of the National
Commission on Energy Policy entitled `Ending the Energy
Stalemate--A Bipartisan Strategy to Meet America's
Energy Challenge', and dated December 2004, the United
States may be endowed with over \1/4\ of the methane
hydrate deposits in the world;
``(4) according to the Energy Information
Administration, a shortfall in natural gas supply from
conventional and unconventional sources is expected to
occur in or about 2020; and
``(5) the National Academy of Sciences states that
methane hydrate may have the potential to alleviate the
projected shortfall in the natural gas supply.
``SEC. 3. DEFINITIONS.
``In this Act:
``(1) Contract.--The term `contract' means a
procurement contract within the meaning of section 6303
of title 31, United States Code.
``(2) Cooperative agreement.--The term `cooperative
agreement' means a cooperative agreement within the
meaning of section 6305 of title 31, United States
Code.
``(3) Director.--The term `Director' means the
Director of the National Science Foundation.
``(4) Grant.--The term `grant' means a grant
awarded under a grant agreement (within the meaning of
section 6304 of title 31, United States Code).
``(5) Industrial enterprise.--The term `industrial
enterprise' means a private, nongovernmental enterprise
that has an expertise or capability that relates to
methane hydrate research and development.
``(6) Institution of higher education.--The term
`institution of higher education' means an institution
of higher education (as defined in section 102 of the
Higher Education Act of 1965 (20 U.S.C. 1002)).
``(7) Secretary.--The term `Secretary' means the
Secretary of Energy, acting through the Assistant
Secretary for Fossil Energy.
``(8) Secretary of commerce.--The term `Secretary
of Commerce' means the Secretary of Commerce, acting
through the Administrator of the National Oceanic and
Atmospheric Administration.
``(9) Secretary of defense.--The term `Secretary of
Defense' means the Secretary of Defense, acting through
the Secretary of the Navy.
``(10) Secretary of the interior.--The term
`Secretary of the Interior' means the Secretary of the
Interior, acting through the Director of the United
States Geological Survey, the Director of the Bureau of
Land Management, and the Director of the Minerals
Management Service.
``SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOPMENT PROGRAM.
``(a) In General.--
``(1) Commencement of program.--Not later than 90
days after the date of enactment of the Energy
Research, Development, Demonstration, and Commercial
Application Act of 2005, the Secretary, in consultation
with the Secretary of Commerce, the Secretary of
Defense, the Secretary of the Interior, and the
Director, shall commence a program of methane hydrate
research and development in accordance with this
section.
``(2) Designations.--The Secretary, the Secretary
of Commerce, the Secretary of Defense, the Secretary of
the Interior, and the Director shall designate
individuals to carry out this section.
``(3) Coordination.--The individual designated by
the Secretary shall coordinate all activities within
the Department of Energy relating to methane hydrate
research and development.
``(4) Meetings.--The individuals designated under
paragraph (2) shall meet not later than 180 days after
the date of enactment of the Energy Research,
Development, Demonstration, and Commercial Application
Act of 2005 and not less frequently than every 180 days
thereafter to--
``(A) review the progress of the program
under paragraph (1); and
``(B) coordinate interagency research and
partnership efforts in carrying out the
program.
``(b) Grants, Contracts, Cooperative Agreements,
Interagency Funds Transfer Agreements, and Field Work
Proposals.--
``(1) Assistance and coordination.--In carrying out
the program of methane hydrate research and development
authorized by this section, the Secretary may award
grants to, or enter into contracts or cooperative
agreements with, institutions of higher education,
oceanographic institutions, and industrial enterprises
to--
``(A) conduct basic and applied research to
identify, explore, assess, and develop methane
hydrate as a commercially viable source of
energy;
``(B) identify methane hydrate resources
through remote sensing;
``(C) acquire and reprocess seismic data
suitable for characterizing methane hydrate
accumulations;
``(D) assist in developing technologies
required for efficient and environmentally
sound development of methane hydrate resources;
``(E) promote education and training in
methane hydrate resource research and resource
development through fellowships or other means
for graduate education and training;
``(F) conduct basic and applied research to
assess and mitigate the environmental impact of
hydrate degassing (including both natural
degassing and degassing associated with
commercial development);
``(G) develop technologies to reduce the
risks of drilling through methane hydrates; and
``(H) conduct exploratory drilling, well
testing, and production testing operations on
permafrost and non-permafrost gas hydrates in
support of the activities authorized by this
paragraph, including drilling of 1 or more
full-scale production test wells.
``(2) Competitive peer review.--Funds made
available under paragraph (1) shall be made available
based on a competitive process using external
scientific peer review of proposed research.
``(c) Methane Hydrates Advisory Panel.--
``(1) In general.--The Secretary shall establish an
advisory panel (including the hiring of appropriate
staff) consisting of representatives of industrial
enterprises, institutions of higher education,
oceanographic institutions, State agencies, and
environmental organizations with knowledge and
expertise in the natural gas hydrates field, to--
``(A) assist in developing recommendations
and broad programmatic priorities for the
methane hydrate research and development
program carried out under subsection (a)(1);
``(B) provide scientific oversight for the
methane hydrates program, including assessing
progress toward program goals, evaluating
program balance, and providing recommendations
to enhance the quality of the program over
time; and
``(C) not later than 2 years after the date
of enactment of the Energy Research,
Development, Demonstration, and Commercial
Application Act of 2005, and at such later
dates as the panel considers advisable, submit
to Congress--
``(i) an assessment of the methane
hydrate research program; and
``(ii) an assessment of the 5-year
research plan of the Department of
Energy.
``(2) Conflicts of interest.--In appointing each
member of the advisory panel established under
paragraph (1), the Secretary shall ensure, to the
maximum extent practicable, that the appointment of the
member does not pose a conflict of interest with
respect to the duties of the member under this Act.
``(3) Meetings.--The advisory panel shall--
``(A) hold the initial meeting of the
advisory panel not later than 180 days after
the date of establishment of the advisory
panel; and
``(B) meet biennially thereafter.
``(4) Coordination.--The advisory panel shall
coordinate activities of the advisory panel with
program managers of the Department of Energy at
appropriate National Laboratories.
``(d) Construction Costs.--None of the funds made available
to carry out this section may be used for the construction of a
new building or the acquisition, expansion, remodeling, or
alteration of an existing building (including site grading and
improvement and architect fees).
``(e) Responsibilities of the Secretary.--In carrying out
subsection (b)(1), the Secretary shall--
``(1) facilitate and develop partnerships among
government, industrial enterprises, and institutions of
higher education to research, identify, assess, and
explore methane hydrate resources;
``(2) undertake programs to develop basic
information necessary for promoting long-term interest
in methane hydrate resources as an energy source;
``(3) ensure that the data and information
developed through the program are accessible and widely
disseminated as needed and appropriate;
``(4) promote cooperation among agencies that are
developing technologies that may hold promise for
methane hydrate resource development;
``(5) report annually to Congress on the results of
actions taken to carry out this Act; and
``(6) ensure, to the maximum extent practicable,
greater participation by the Department of Energy in
international cooperative efforts.
``SEC. 5. NATIONAL RESEARCH COUNCIL STUDY.
``(a) Agreement for Study.--The Secretary shall offer to
enter into an agreement with the National Research Council
under which the National Research Council shall--
``(1) conduct a study of the progress made under
the methane hydrate research and development program
implemented under this Act; and
``(2) make recommendations for future methane
hydrate research and development needs.
``(b) Report.--Not later than September 30, 2009, the
Secretary shall submit to Congress a report containing the
findings and recommendations of the National Research Council
under this section.
``SEC. 6. REPORTS AND STUDIES FOR CONGRESS.
``The Secretary shall provide to the Committee on Science
of the House of Representatives and the Committee on Energy and
Natural Resources of the Senate copies of any report or study
that the Department of Energy prepares at the direction of any
committee of Congress relating to the methane hydrate research
and development program implemented under this Act.
``SEC. 7. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the Secretary
to carry out this Act, to remain available until expended--
``(1) $15,000,000 for fiscal year 2006;
``(2) $20,000,000 for fiscal year 2007;
``(3) $30,000,000 for fiscal year 2008;
``(4) $40,000,000 for fiscal year 2009; and
``(5) $50,000,000 for fiscal year 2010.''.
(b) Reclassification.--The Law Revision Counsel shall
reclassify the Methane Hydrate Research and Development Act of
2000 (30 U.S.C. 1902 note; Public Law 106-193) to a new chapter
at the end of title 30, United States Code.
Subtitle G--Science
SEC. 971. SCIENCE.
(a) In General.--The Secretary shall conduct, through the
Office of Science, programs of research, development,
demonstration, and commercial application in high energy
physics, nuclear physics, biological and environmental
research, basic energy sciences, advanced scientific computing
research, and fusion energy sciences, including activities
described in this subtitle. The programs shall include support
for facilities and infrastructure, education, outreach,
information, analysis, and coordination activities.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary to carry out 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 976(b) and
including basic energy sciences, advanced scientific and
computing research, biological and environmental research,
fusion energy sciences, high energy physics, nuclear physics,
research analysis, and infrastructure support)--
(1) $4,153,000,000 for fiscal year 2007;
(2) $4,586,000,000 for fiscal year 2008; and
(3) $5,200,000,000 for fiscal year 2009.
(c) Allocations.--From amounts authorized under subsection
(b), the following sums are authorized:
(1) For activities under the Fusion Energy Sciences
program (including activities under section 972)--
(A) $355,500,000 for fiscal year 2007;
(B) $369,500,000 for fiscal year 2008;
(C) $384,800,000 for fiscal year 2009; and
(D) in addition to the amounts authorized
under subparagraphs (A), (B), and (C), such
sums as may be necessary for ITER construction,
consistent with the limitations of section
972(c)(5).
(2) For activities under the catalysis research
program under section 973--
(A) $36,500,000 for fiscal year 2007;
(B) $38,200,000 for fiscal year 2008; and
(C) such sums as may be necessary for
fiscal year 2009.
(3) For activities under the Systems Biology
Program under section 977 such sums as may be necessary
for each of fiscal years 2007 through 2009.
(4) For activities under the Energy and Water
Supplies program under section 979, $30,000,000 for
each of fiscal years 2007 through 2009.
(5) For the energy research fellowships programs
under section 984, $40,000,000 for each of fiscal years
2007 through 2009.
(6) For the advanced scientific computing
activities under section 976--
(A) $270,000,000 for fiscal year 2007;
(B) $350,000,000 for fiscal year 2008; and
(C) $375,000,000 for fiscal year 2009.
(7) For the science and engineering education pilot
program under section 983--
(A) $4,000,000 for each of fiscal years
2007 and 2008; and
(B) $8,000,000 for fiscal year 2009.
(d) Integrated Bioenergy Research and Development.--In
addition to amounts otherwise authorized by this section, there
are authorized to be appropriated to the Secretary for
integrated bioenergy research and development programs,
projects, and activities, $49,000,000 for each of the fiscal
years 2005 through 2009. Activities funded under this
subsection shall be coordinated with ongoing related programs
of other Federal agencies, including the Plant Genome Program
of the National Science Foundation. Of the funds authorized
under this subsection, at least $5,000,000 for each fiscal year
shall be for training and education targeted to minority and
socially disadvantaged farmers and ranchers.
SEC. 972. FUSION ENERGY SCIENCES PROGRAM.
(a) Declaration of Policy.--It shall be the policy of the
United States to conduct research, development, demonstration,
and commercial applications to provide for the scientific,
engineering, and commercial infrastructure necessary to ensure
that the United States is competitive with other countries in
providing fusion energy for its own needs and the needs of
other countries, including by demonstrating electric power or
hydrogen production for the United States energy grid using
fusion energy at the earliest date.
(b) Planning.--
(1) In general.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
submit to Congress a plan (with proposed cost
estimates, budgets, and lists of potential
international partners) for the implementation of the
policy described in subsection (a) in a manner that
ensures that--
(A) existing fusion research facilities are
more fully used;
(B) fusion science, technology, theory,
advanced computation, modeling, and simulation
are strengthened;
(C) new magnetic and inertial fusion
research and development facilities are
selected based on scientific innovation and
cost effectiveness, and the potential of the
facilities to advance the goal of practical
fusion energy at the earliest date practicable;
(D) facilities that are selected are funded
at a cost-effective rate;
(E) communication of scientific results and
methods between the fusion energy science
community and the broader scientific and
technology communities is improved;
(F) inertial confinement fusion facilities
are used to the extent practicable for the
purpose of inertial fusion energy research and
development;
(G) attractive alternative inertial and
magnetic fusion energy approaches are more
fully explored; and
(H) to the extent practicable, the
recommendations of the Fusion Energy Sciences
Advisory Committee in the report on workforce
planning, dated March 2004, are carried out,
including periodic reassessment of program
needs.
(2) Costs and schedules.--The plan shall also
address the status of and, to the extent practicable,
costs and schedules for--
(A) 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.
(c) United States Participation in ITER.--
(1) Definitions.--In this subsection:
(A) Construction.--
(i) In general.--The term
``construction'' means--
(I) the physical
construction of the ITER
facility; and
(II) the physical
construction, purchase, or
manufacture of equipment or
components that are
specifically designed for the
ITER facility.
(ii) Exclusions.--The term
``construction'' does not include the
design of the facility, equipment, or
components.
(B) ITER.--The term ``ITER'' means the
international burning plasma fusion research
project in which the President announced United
States participation on January 30, 2003, or
any similar international project.
(2) Participation.--The United States may
participate in the ITER only in accordance with this
subsection.
(3) Agreement.--
(A) In general.--The Secretary may
negotiate an agreement for United States
participation in the ITER.
(B) Contents.--Any agreement for United
States participation in the ITER shall, at a
minimum--
(i) clearly define the United
States financial contribution to
construction and operating costs, as
well as any other costs associated with
a project;
(ii) ensure that the share of high-
technology components of the ITER
manufactured in the United States is at
least proportionate to the United
States financial contribution to the
ITER;
(iii) ensure that the United States
will not be financially responsible for
cost overruns in components
manufactured in other ITER
participating countries;
(iv) guarantee the United States
full access to all data generated by
the ITER;
(v) enable United States
researchers to propose and carry out an
equitable share of the experiments at
the ITER;
(vi) provide the United States with
a role in all collective decisionmaking
related to the ITER; and
(vii) describe the process for
discontinuing or decommissioning the
ITER and any United States role in that
process.
(4) Plan.--
(A) Development.--The Secretary, in
consultation with the Fusion Energy Sciences
Advisory Committee, shall develop a plan for
the participation of United States scientists
in the ITER that shall include--
(i) the United States research
agenda for the ITER;
(ii) methods to evaluate whether
the ITER is promoting progress toward
making fusion a reliable and affordable
source of power; and
(iii) a description of how work at
the ITER will relate to other elements
of the United States fusion program.
(B) Review.--The Secretary shall request a
review of the plan by the National Academy of
Sciences.
(5) Limitation.--No Federal funds shall be expended
for the construction of the ITER until the Secretary
has submitted to Congress--
(A) the agreement negotiated in accordance
with paragraph (3) and 120 days have elapsed
since that submission;
(B) a report describing the management
structure of the ITER and providing a fixed
dollar estimate of the cost of United States
participation in the construction of the ITER,
and 120 days have elapsed since that
submission;
(C) a report describing how United States
participation in the ITER will be funded
without reducing funding for other programs in
the Office of Science (including other fusion
programs), and 60 days have elapsed since that
submission; and
(D) the plan required by paragraph (4) (but
not the National Academy of Sciences review of
that plan), and 60 days have elapsed since that
submission.
(6) Alternative to iter.--
(A) In general.--If at any time during the
negotiations on the ITER, the Secretary
determines that construction and operation of
the ITER is unlikely or infeasible, the
Secretary shall submit to Congress, along with
the budget request of the President submitted
to Congress for the following fiscal year, a
plan for implementing a domestic burning plasma
experiment such as the Fusion Ignition Research
Experiment, including costs and schedules for
the plan.
(B) Administration.--The Secretary shall--
(i) refine the plan in full
consultation with the Fusion Energy
Sciences Advisory Committee; and
(ii) transmit the plan to the
National Academy of Sciences for
review.
SEC. 973. CATALYSIS RESEARCH PROGRAM.
(a) Establishment.--The Secretary, acting through the
Office of Science, shall support a program of research and
development in catalysis science consistent with the statutory
authorities of the Department related to research and
development.
(b) Components.--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
subnanometer 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.
(c) Duties of the Office of Science.--In carrying out the
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.
(d) Assessment.--Not later than 3 years after the date of
enactment of this Act, the Secretary shall enter into an
arrangement with the National Academy of Sciences to--
(1) review the catalysis program to measure--
(A) gains made in the fundamental science
of catalysis; and
(B) progress towards developing new fuels
for energy production and material fabrication
processes; and
(2) submit to Congress a report describing the
results of the review.
SEC. 974. HYDROGEN.
(a) In General.--The Secretary shall conduct a program of
fundamental research and development in support of programs
authorized under title VIII.
(b) Methods.--The program shall include support for methods
of generating hydrogen without the use of natural gas.
SEC. 975. SOLID STATE LIGHTING.
The Secretary shall conduct a program of fundamental
research on solid state lighting in support of the Next
Generation Lighting Initiative carried out under section 912.
SEC. 976. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.
(a) Program.--
(1) In general.--The Secretary shall conduct an
advanced scientific computing research and development
program that includes activities related to applied
mathematics and activities authorized by the Department
of Energy High-End Computing Revitalization Act of 2004
(15 U.S.C. 5541 et seq.).
(2) Goal.--The Secretary shall carry out the
program with the goal of supporting departmental
missions, and providing the high-performance
computational, networking, advanced visualization
technologies, and workforce resources, that are
required for world leadership in science.
(b) High-Performance Computing.--Section 203 of the High-
Performance Computing Act of 1991 (15 U.S.C. 5523) is amended
to read as follows:
``SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.
``(a) General Responsibilities.--As part of the Program
described in title I, the Secretary of Energy shall--
``(1) conduct and support basic and applied
research in high-performance computing and networking
to support fundamental research in science and
engineering disciplines related to energy applications;
and
``(2) provide computing and networking
infrastructure support, including--
``(A) the provision of high-performance
computing systems that are among the most
advanced in the world in terms of performance
in solving scientific and engineering problems;
and
``(B) support for advanced software and
applications development for science and
engineering disciplines related to energy
applications.
``(b) Authorization of Appropriations.--There are
authorized to be appropriated to the Secretary of Energy such
sums as are necessary to carry out this section.''.
SEC. 977. SYSTEMS BIOLOGY PROGRAM.
(a) Program.--
(1) Establishment.--The Secretary shall establish a
research, development, and demonstration program in
microbial and plant systems biology, protein science,
and computational biology to support the energy,
national security, and environmental missions of the
Department.
(2) Grants.--The program shall support individual
researchers and multidisciplinary teams of researchers
through competitive, merit-reviewed grants.
(3) Consultation.--In carrying out the program, the
Secretary shall consult with other Federal agencies
that conduct genetic and protein research.
(b) Goals.--The program shall have the goal of developing
technologies and methods based on the biological functions of
genomes, microbes, and plants that--
(1) can facilitate the production of fuels,
including hydrogen;
(2) convert carbon dioxide to organic carbon;
(3) detoxify soils and water, including at
facilities of the Department, contaminated with heavy
metals and radiological materials; and
(4) address other Department missions as identified
by the Secretary.
(c) Plan.--
(1) Development of plan.--Not later than 1 year
after the date of enactment of this Act, the Secretary
shall prepare and transmit to Congress a research plan
describing how the program authorized pursuant to this
section will be undertaken to accomplish the program
goals established in subsection (b).
(2) Review of plan.--The Secretary shall contract
with the National Academy of Sciences to review the
research plan developed under this subsection. The
Secretary shall transmit the review to Congress not
later than 18 months after transmittal of the research
plan under paragraph (1), along with the Secretary's
response to the recommendations contained in the
review.
(d) User Facilities and Ancillary Equipment.--Within the
funds authorized to be appropriated pursuant to this subtitle,
amounts shall be available for projects to develop, plan,
construct, acquire, or operate special equipment,
instrumentation, or facilities, including user facilities at
National Laboratories, for researchers conducting research,
development, demonstration, and commercial application in
systems biology and proteomics and associated biological
disciplines.
(e) Prohibition on Biomedical and Human Cell and Human
Subject Research.--
(1) No biomedical research.--In carrying out the
program under this section, the Secretary shall not
conduct biomedical research.
(2) Limitations.--Nothing in this section shall
authorize the Secretary to conduct any research or
demonstrations--
(A) on human cells or human subjects; or
(B) designed to have direct application
with respect to human cells or human subjects.
SEC. 978. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.
(a) In General.--Along with the budget request of the
President submitted to Congress for fiscal year 2007, the
Secretary shall establish a research and development program on
material science issues presented by advanced fission reactors
and the fusion energy program of the Department.
(b) Administration.--In carrying out the program, the
Secretary shall develop--
(1) a catalog of material properties required for
applications described in subsection (a);
(2) theoretical models for materials possessing the
required properties;
(3) benchmark models against existing data; and
(4) a roadmap to guide further research and
development in the area covered by the program.
SEC. 979. ENERGY AND WATER SUPPLIES.
(a) In General.--The Secretary shall carry out a program of
research, development, demonstration, and commercial
application to--
(1) address energy-related issues associated with
provision of adequate water supplies, optimal
management, and efficient use of water;
(2) address water-related issues associated with
the provision of adequate supplies, optimal management,
and efficient use of energy; and
(3) assess the effectiveness of existing programs
within the Department and other Federal agencies to
address these energy and water related issues.
(b) Program Elements.--The program under this section shall
include--
(1) arsenic treatment;
(2) desalination; and
(3) planning, analysis, and modeling of energy and
water supply and demand.
(c) Collaboration.--In carrying out this section, the
Secretary shall consult with the Administrator of the
Environmental Protection Agency, the Secretary of the Interior,
the Chief Engineer of the Army Corps of Engineers, the
Secretary of Commerce, the Secretary of Defense, and other
Federal agencies as appropriate.
(d) Facilities.--The Secretary may utilize all existing
facilities within the Department and may design and construct
additional facilities as needed to carry out the purposes of
this program.
(e) Advisory Committee.--The Secretary shall establish or
utilize an advisory committee to provide independent advice and
review of the program.
(f) Reports.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report on the assessment described in subsection (b) and
recommendations for future actions.
SEC. 980. SPALLATION NEUTRON SOURCE.
(a) Definitions.--In this section:
(1) SING.--The term ``SING'' means the Spallation
Neutron Source Instruments Next Generation major item
of equipment.
(2) SNS power upgrade.--The term ``SNS power
upgrade'' means the Spallation Neutron Source power
upgrade described in the 20-year facilities plan of the
Office of Science of the Department.
(3) SNS second target station.--The term ``SNS
second target station'' the Spallation Neutron Source
second target station described in the 20-year
facilities plan of the Office of Science of the
Department.
(4) Spallation neutron source facility.--The terms
``Spallation Neutron Source Facility'' and ``Facility''
mean the completed Spallation Neutron Source scientific
user facility located at Oak Ridge National Laboratory,
Oak Ridge, Tennessee.
(5) Spallation neutron source project.--The terms
``Spallation Neutron Source Project'' and ``Project''
means Department Project 99-E-334, Oak Ridge National
Laboratory, Oak Ridge, Tennessee.
(b) Spallation Neutron Source Project.--
(1) In general.--The Secretary shall submit to
Congress, as part of the annual budget request of the
President submitted to Congress, a report on progress
on the Spallation Neutron Source Project.
(2) Contents.--The report shall include for the
Project--
(A) a description of the achievement of
milestones;
(B) a comparison of actual costs to
estimated costs; and
(C) any changes in estimated Project costs
or schedule.
(c) Spallation Neutron Source Facility Plan.--
(1) In general.--The Secretary shall develop an
operational plan for the Spallation Neutron Source
Facility that ensures that the Facility is employed to
the full capability of the Facility in support of the
study of advanced materials, nanoscience, and other
missions of the Office of Science of the Department.
(2) Plan.--The operational plan shall--
(A) include a plan for the operation of an
effective scientific user program that--
(i) is based on peer review of
proposals submitted for use of the
Facility;
(ii) includes scientific and
technical support to ensure that
external users, including researchers
based at institutions of higher
education, are able to make full use of
a variety of high quality scientific
instruments; and
(iii) phases in systems upgrades to
ensure that the Facility remains at the
forefront of international scientific
endeavors in the field of the Facility
throughout the operating life of the
Facility;
(B) include an ongoing program to develop
new instruments that builds on the high
performance neutron source and that allows
neutron scattering techniques to be applied to
a growing range of scientific problems and
disciplines; and
(C) address the status of and, to the
maximum extent practicable, costs and schedules
for--
(i) full user mode operations of
the Facility;
(ii) instrumentation built at the
Facility during the operating phase
through full use of the experimental
hall, including the SING;
(iii) the SNS power upgrade; and
(iv) the SNS second target station.
(d) Authorization of Appropriations.--
(1) Spallation neutron source project.--There is
authorized to be appropriated to carry out the
Spallation Neutron Source Project for the lifetime of
the Project $1,411,700,000 for total project costs, of
which--
(A) $1,192,700,000 shall be used for the
costs of construction; and
(B) $219,000,000 shall be used for other
Project costs.
(2) Spallation neutron source facility.--
(A) In general.--Except as provided in
subparagraph (B), there is authorized to be
appropriated for the Spallation Neutron Source
Facility for--
(i) the SING, $75,000,000 for each
of fiscal year 2007 through 2009; and
(ii) the SNS power upgrade,
$160,000,000, to remain available until
expended.
(B) Insufficient stockpiles of heavy
water.--If stockpiles of heavy water of the
Department are insufficient to meet the needs
of the Facility, there is authorized to be
appropriated for the Facility $12,000,000 for
fiscal year 2007.
SEC. 981. RARE ISOTOPE ACCELERATOR.
(a) Establishment.--The Secretary shall construct and
operate a Rare Isotope Accelerator. The Secretary shall
commence construction no later than September 30, 2008.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary such sums as may be
necessary to carry out this section. The Secretary shall not
spend more than $1,100,000,000 in Federal funds for all
activities associated with the Rare Isotope Accelerator, prior
to operation of the Accelerator.
SEC. 982. OFFICE OF SCIENTIFIC AND TECHNICAL INFORMATION.
The Secretary, through the Office of Scientific and
Technical Information, shall maintain within the Department
publicly available collections of scientific and technical
information resulting from research, development,
demonstration, and commercial applications activities supported
by the Department.
SEC. 983. SCIENCE AND ENGINEERING EDUCATION PILOT PROGRAM.
(a) Establishment of Pilot Program.--The Secretary shall
award a grant to a Southeastern United States consortium of
major research universities that currently advances science and
education by partnering with National Laboratories, to
establish a regional pilot program of its SEEK-16 program for
enhancing scientific, technological, engineering, and
mathematical literacy, creativity, and decision-making. The
consortium shall include leading research universities, 1 or
more universities that train substantial numbers of elementary
and secondary school teachers, and (where appropriate) National
Laboratories.
(b) Program Elements.--The regional pilot program shall
include--
(1) expanding strategic, formal partnerships among
universities with strength in research, universities
that train substantial numbers of elementary and
secondary school teachers, and the private sector;
(2) combining Department expertise with 1 or more
National Aeronautics and Space Administration Educator
Resource Centers;
(3) developing programs to permit current and
future teachers to participate in ongoing research
projects at National Laboratories and research
universities and to adapt lessons learned to the
classroom;
(4) designing and implementing course work;
(5) designing and implementing a strategy for
measuring and assessing progress under the program; and
(6) developing models for transferring knowledge
gained under the pilot program to other institutions
and areas of the United States.
(c) Categorization.--A grant under this section shall be
considered an authorized activity under section 3165 of the
Department of Energy Science Education Enhancement Act (42
U.S.C. 7381b).
(d) Report.--No later than 2 years after the award of the
grant, the Secretary shall transmit to Congress a report
outlining lessons learned and, if determined appropriate by the
Secretary, containing a plan for expanding the program
throughout the United States.
SEC. 984. ENERGY RESEARCH FELLOWSHIPS.
(a) Postdoctoral Fellowship Program.--The Secretary shall
establish a program under which the Secretary provides
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) Senior Research Fellowships.--
(1) In general.--The Secretary shall establish a
program under which the Secretary provides fellowships
to allow outstanding senior researchers and their
research groups in energy research and development to
explore research and development topics of their
choosing for a period of not less than 3 years, to be
determined by the Secretary.
(2) Consideration.--In providing a fellowship under
the program described in paragraph (1), the Secretary
shall consider--
(A) the past scientific or technical
accomplishment of a senior researcher; and
(B) the potential for continued
accomplishment by the researcher during the
period of the fellowship.
SEC. 984A. SCIENCE AND TECHNOLOGY SCHOLARSHIP PROGRAM.
(a) In General.--The Secretary is authorized to establish a
Science and Technology Scholarship Program to award
scholarships to individuals that is designed to recruit and
prepare students for careers in the Department and National
Laboratories.
(b) Service Requirement.--The Secretary may require that an
individual receiving a scholarship under this section serve as
a full-time employee of the Department or a National Laboratory
for a fixed period in return for receiving the scholarship.
Subtitle H--International Cooperation
SEC. 985. WESTERN HEMISPHERE ENERGY COOPERATION.
(a) Program.--The Secretary shall carry out a program to
promote cooperation on energy issues with countries of the
Western Hemisphere.
(b) Activities.--Under the program, the Secretary shall
fund activities to work with countries of the Western
Hemisphere to--
(1) increase the production of energy supplies;
(2) improve energy efficiency; and
(3) assist in the development and transfer of
energy supply and efficiency technologies that would
have a beneficial impact on world energy markets.
(c) Participation by Institutions of Higher Education.--To
the extent practicable, the Secretary shall carry out the
program under this section with the participation of
institutions of higher education so as to take advantage of the
acceptance of institutions of higher education by countries of
the Western Hemisphere as sources of unbiased technical and
policy expertise when assisting the Secretary in--
(1) evaluating new technologies;
(2) resolving technical issues;
(3) working with those countries in the development
of new policies; and
(4) training policymakers, particularly in the case
of institutions of higher education that involve the
participation of minority students, such as--
(A) Hispanic-serving institutions; and
(B) part B institutions.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section--
(1) $10,000,000 for fiscal year 2007;
(2) $13,000,000 for fiscal year 2008; and
(3) $16,000,000 for fiscal year 2009.
SEC. 986. COOPERATION BETWEEN UNITED STATES AND ISRAEL.
(a) Findings.--Congress finds that--
(1) on February 1, 1996, the United States and
Israel signed the agreement entitled ``Agreement
between the Department of Energy of the United States
of America and the Ministry of Energy and
Infrastructure of Israel Concerning Energy
Cooperation'', (referred to in this section as the
``Agreement'') to establish a framework for
collaboration between the United States and Israel in
energy research and development activities;
(2) the Agreement entered into force in February
2000;
(3) in February 2005, the Agreement was
automatically renewed for 1 additional 5-year period
pursuant to Article X of the Agreement; and
(4) under the Agreement, the United States and
Israel may cooperate in energy research and development
in a variety of alternative and advanced energy
sectors.
(b) Report to Congress.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall submit to
the Committee on Energy and Natural Resources and the Committee
on Foreign Relations of the Senate and the Committee on Energy
and Commerce and the Committee on International Relations of
the House of Representatives a report that describes--
(1) the ways in which the United States and Israel
have cooperated on energy research and development
activities under the Agreement;
(2) projects initiated pursuant to the Agreement;
and
(3) plans for future cooperation and joint projects
under the Agreement.
(c) Sense of Congress.--It is the sense of Congress that
energy cooperation between the Governments of the United States
and Israel is mutually beneficial in the development of energy
technology.
SEC. 986A. INTERNATIONAL ENERGY TRAINING.
(a) In General.--The Secretary, in consultation with the
Secretary of Commerce, the Secretary of the Interior, and
Secretary of State, and the Federal Energy Regulatory
Commission, shall coordinate training and outreach efforts for
international commercial energy markets in countries with
developing and restructuring economies.
(b) Components.--The training and outreach efforts referred
to in subsection (a) may include--
(1) production-related fiscal regimes;
(2) grid and network issues;
(3) energy user and demand side response;
(4) international trade of energy; and
(5) international transportation of energy.
(c) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $1,500,000 for
each of fiscal years 2007 through 2010.
Subtitle I--Research Administration and Operations
SEC. 987. AVAILABILITY OF FUNDS.
Funds authorized to be appropriated to the Department under
this Act or an amendment made by this Act shall remain
available until expended.
SEC. 988. COST SHARING.
(a) Applicability.--Notwithstanding any other provision of
law, in carrying out a research, development, demonstration, or
commercial application program or activity that is initiated
after the date of enactment of this section, the Secretary
shall require cost-sharing in accordance with this section.
(b) Research and Development.--
(1) In general.--Except as provided in paragraphs
(2) and (3) and subsection (f), the Secretary shall
require not less than 20 percent of the cost of a
research or development activity described in
subsection (a) to be provided by a non-Federal source.
(2) Exclusion.--Paragraph (1) shall not apply to a
research or development activity described in
subsection (a) that is of a basic or fundamental
nature, as determined by the appropriate officer of the
Department.
(3) Reduction.--The Secretary may reduce or
eliminate the requirement of paragraph (1) for a
research and development activity of an applied nature
if the Secretary determines that the reduction is
necessary and appropriate.
(c) Demonstration and Commercial Application.--
(1) In general.--Except as provided in paragraph
(2) and subsection (f), the Secretary shall require
that not less than 50 percent of the cost of a
demonstration or commercial application activity
described in subsection (a) to be provided by a non-
Federal source.
(2) Reduction of non-federal share.--The Secretary
may reduce the non-Federal share required under
paragraph (1) if the Secretary determines the reduction
to be necessary and appropriate, taking into
consideration any technological risk relating to the
activity.
(d) Calculation of Amount.--In calculating the amount of a
non-Federal contribution under this section, the Secretary--
(1) may include allowable costs in accordance with
the applicable cost principles, including--
(A) cash;
(B) personnel costs;
(C) the value of a service, other resource,
or third party in-kind contribution determined
in accordance with the applicable circular of
the Office of Management and Budget;
(D) indirect costs or facilities and
administrative costs; or
(E) any funds received under the power
program of the Tennessee Valley Authority
(except to the extent that such funds are made
available under an annual appropriation Acts);
and
(2) shall not include--
(A) revenues or royalties from the
prospective operation of an activity beyond the
time considered in the award;
(B) proceeds from the prospective sale of
an asset of an activity; or
(C) other appropriated Federal funds.
(e) Repayment of Federal Share.--The Secretary shall not
require repayment of the Federal share of a cost-shared
activity under this section as a condition of making an award.
(f) Exclusions.--This section shall not apply to--
(1) a cooperative research and development
agreement under the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701 et seq.);
(2) a fee charged for the use of a Department
facility; or
(3) an award under--
(A) the small business innovation research
program under section 9 of the Small Business
Act (15 U.S.C. 638); or
(B) the small business technology transfer
program under that section.
SEC. 989. MERIT REVIEW OF PROPOSALS.
(a) Awards.--Awards of funds authorized under this Act or
an amendment made by this Act shall be made only after an
impartial review of the scientific and technical merit of the
proposals for the awards has been carried out by or for the
Department.
(b) Competition.--Competitive awards under this Act shall
involve competitions open to all qualified entities within 1 or
more of the following categories:
(1) Institutions of higher education.
(2) National Laboratories.
(3) Nonprofit and for-profit private entities.
(4) State and local governments.
(5) Consortia of entities described in paragraphs
(1) through (4).
(c) Sense of Congress.--It is the sense of Congress that
research, development, demonstration, and commercial
application activities carried out by the Department should be
awarded using competitive procedures, to the maximum extent
practicable.
SEC. 990. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.
(a) National Energy Research and Development Advisory
Boards.--
(1) Establishment.--The Secretary shall establish 1
or more advisory boards to review research,
development, demonstration, and commercial application
programs of the Department in energy efficiency,
renewable energy, nuclear energy, and fossil energy.
(2) Alternatives.--The Secretary may--
(A) designate an existing advisory board
within the Department to fulfill the
responsibilities of an advisory board under
this section; and
(B) enter into appropriate arrangements
with the National Academy of Sciences to
establish such an advisory board.
(b) Use of Existing Committees.--The Secretary shall
continue to use the scientific program advisory committees
chartered under the Federal Advisory Committee Act (5 U.S.C.
App.) 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 Goals.--
(1) Meetings.--Each advisory board under this
section shall meet at least semiannually to review and
advise on the progress made by the respective 1 or more
research, development, demonstration, and commercial
application programs.
(2) Goals.--The advisory board shall review the
measurable cost and performance-based goals for the
programs as established under section 902, and the
progress on meeting the goals.
(e) Periodic Reviews and Assessments.--
(1) In general.--The Secretary shall enter into
appropriate arrangements with the National Academy of
Sciences to conduct periodic reviews and assessments
of--
(A) the research, development,
demonstration, and commercial application
programs authorized by this Act and amendments
made by this Act;
(B) the measurable cost and performance-
based goals for the programs as established
under section 902, if any; and
(C) the progress on meeting the goals.
(2) Timing.--The reviews and assessments shall be
conducted every 5 years or more often as the Secretary
considers necessary.
(3) Reports.--The Secretary shall submit to
Congress reports describing the results of all the
reviews and assessments.
SEC. 991. NATIONAL LABORATORY DESIGNATION.
After the date of enactment of this Act, the Secretary
shall not designate a facility that is not listed in section
2(3) as a National Laboratory.
SEC. 992. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY PRACTICES.
Not later than 12 months after the date of enactment of
this Act, and biennially thereafter, the Secretary shall
transmit to Congress a report on the equal employment
opportunity practices at National Laboratories. Such report
shall include--
(1) a thorough review of each National Laboratory
contractor's equal employment opportunity policies,
including promotion to management and professional
positions and pay raises;
(2) a statistical report on complaints and their
disposition in the National Laboratories;
(3) a description of how equal employment
opportunity practices at the National Laboratories are
treated in the contract and in calculating award fees
for each contractor;
(4) a summary of disciplinary actions and their
disposition by either the Department or the relevant
contractors for each National Laboratory;
(5) a summary of outreach efforts to attract women
and minorities to the National Laboratories;
(6) a summary of efforts to retain women and
minorities in the National Laboratories; and
(7) a summary of collaboration efforts with the
Office of Federal Contract Compliance Programs to
improve equal employment opportunity practices at the
National Laboratories.
SEC. 993. STRATEGY AND PLAN FOR SCIENCE AND ENERGY FACILITIES AND
INFRASTRUCTURE.
(a) Facility and Infrastructure Policy.--
(1) In general.--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.
(2) Strategy.--The strategy shall provide cost-
effective means for--
(A) maintaining existing facilities and
infrastructure;
(B) closing unneeded facilities;
(C) making facility modifications; and
(D) building new facilities.
(b) Report.--
(1) In general.--The Secretary shall prepare and
submit, along with the budget request of the President
submitted to Congress for fiscal year 2008, a report
describing the strategy developed under subsection (a).
(2) Contents.--For each National Laboratory and
single-purpose research facility that is primarily used
for science and energy research, the report shall
contain--
(A) the current priority list of proposed
facilities and infrastructure projects,
including cost and schedule requirements;
(B) a current 10-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. 994. STRATEGIC RESEARCH PORTFOLIO ANALYSIS AND COORDINATION PLAN.
(a) In General.--The Secretary shall periodically review
all of the science and technology activities of the Department
in a strategic framework that takes into account both the
frontiers of science to which the Department can contribute and
the national needs relevant to the Department's statutory
missions.
(b) Coordination Analysis and Plan.--As part of the review
under subsection (a), the Secretary shall develop a
coordination plan to improve coordination and collaboration in
research, development, demonstration, and commercial
application activities across Department organizational
boundaries.
(c) Plan Contents.--The plan shall describe--
(1) cross-cutting scientific and technical issues
and research questions that span more than 1 program or
major office of the Department;
(2) how the applied technology programs of the
Department are coordinating their activities, and
addressing those questions;
(3) ways in which the technical interchange within
the Department, particularly between the Office of
Science and the applied technology programs, can be
enhanced, including ways in which the research agendas
of the Office of Science and the applied programs can
interact and assist each other;
(4) a description of how the Secretary will ensure
that the Department's overall research agenda include,
in addition to fundamental, curiosity-driven research,
fundamental research related to topics of concern to
the applied programs, and applications in Departmental
technology programs of research results generated by
fundamental, curiosity-driven research.
(d) Plan Transmittal.--Not later than 12 months after the
date of enactment of this Act, and every 4 years thereafter,
the Secretary shall transmit to Congress the results of the
review under subsection (a) and the coordination plan under
subsection (b).
SEC. 995. 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 National Laboratory (excluding those
named in subparagraphs (G), (H), (N), and (O) of section 2
(3)), unless such contract is competitively awarded, or the
Secretary grants, on a case-by-case basis, a waiver. The
Secretary may not delegate the authority to grant such a waiver
and shall submit to Congress a report notifying it of the
waiver, and setting forth the reasons for the waiver, at least
60 days prior to the date of the award of such contract.
SEC. 996. WESTERN MICHIGAN DEMONSTRATION PROJECT.
The Administrator of the Environmental Protection Agency,
in consultation with the State of Michigan and affected local
officials, shall conduct a demonstration project to address the
effect of transported ozone and ozone precursors in
Southwestern Michigan. The demonstration program shall address
projected nonattainment areas in Southwestern Michigan that
include counties with design values for ozone of less than .095
based on years 2000 to 2002 or the most current 3-year period
of air quality data. The Administrator shall assess any
difficulties such areas may experience in meeting the 8-hour
national ambient air quality standard for ozone due to the
effect of transported ozone or ozone precursors into the areas.
The Administrator shall work with State and local officials to
determine the extent of ozone and ozone precursor transport, to
assess alternatives to achieve compliance with the 8-hour
standard apart from local controls, and to determine the
timeframe in which such compliance could take place. The
Administrator shall complete this demonstration project no
later than 2 years after the date of enactment of this section
and shall not impose any requirement or sanction under the
Clean Air Act (42 U.S.C. 7401 et seq.) that might otherwise
apply during the pendency of the demonstration project.
SEC. 997. ARCTIC ENGINEERING RESEARCH CENTER.
(a) In General.--The Secretary of Transportation, in
consultation with the Secretary and the United States Arctic
Research Commission, shall provide annual grants to a
university located adjacent to the Arctic Energy Office of the
Department of Energy, to establish and operate a university
research center to be headquartered in Fairbanks and to be
known as the ``Arctic Engineering Research Center'' (referred
to in this section as the ``Center'').
(b) Purpose.--The purpose of the Center shall be to conduct
research on, and develop improved methods of, construction and
use of materials to improve the overall performance of roads,
bridges, residential, commercial, and industrial structures,
and other infrastructure in the Arctic region, with an emphasis
on developing--
(1) new construction techniques for roads, bridges,
rail, and related transportation infrastructure and
residential, commercial, and industrial infrastructure
that are capable of withstanding the Arctic environment
and using limited energy resources as efficiently as
practicable;
(2) technologies and procedures for increasing
road, bridge, rail, and related transportation
infrastructure and residential, commercial, and
industrial infrastructure safety, reliability, and
integrity in the Arctic region;
(3) new materials and improving the performance and
energy efficiency of existing materials for the
construction of roads, bridges, rail, and related
transportation infrastructure and residential,
commercial, and industrial infrastructure in the Arctic
region; and
(4) recommendations for new local, regional, and
State permitting and building codes to ensure
transportation and building safety and efficient energy
use when constructing, using, and occupying such
infrastructure in the Arctic region.
(c) Objectives.--The Center shall carry out--
(1) basic and applied research in the subjects
described in subsection (b), the products of which
shall be judged by peers or other experts in the field
to advance the body of knowledge in road, bridge, rail,
and infrastructure engineering in the Arctic region;
and
(2) an ongoing program of technology transfer that
makes research results available to potential users in
a form that can be implemented.
(d) Amount of Grant.--For each of fiscal years 2006 through
2011, the Secretary shall provide a grant in the amount of
$3,000,000 to the institution specified in subsection (a) to
carry out this section.
(e) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $3,000,000 for
each of fiscal years 2006 through 2011.
SEC. 998. BARROW GEOPHYSICAL RESEARCH FACILITY.
(a) Establishment.--The Secretary of Commerce, in
consultation with the Secretaries of Energy and the Interior,
the Director of the National Science Foundation, and the
Administrator of the Environmental Protection Agency, shall
establish a joint research facility in Barrow, Alaska, to be
known as the ``Barrow Geophysical Research Facility'', to
support scientific research activities in the Arctic.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretaries of Commerce, Energy, and
the Interior, the Director of the National Science Foundation,
and the Administrator of the Environmental Protection Agency
for the planning, design, construction, and support of the
Barrow Geophysical Research Facility, $61,000,000.
Subtitle J--Ultra-Deepwater and Unconventional Natural Gas and Other
Petroleum Resources
SEC. 999A. PROGRAM AUTHORITY.
(a) In General.--The Secretary shall carry out a program
under this subtitle of research, development, demonstration,
and commercial application of technologies for ultra-deepwater
and unconventional natural gas and other petroleum resource
exploration and production, including addressing the technology
challenges for small producers, safe operations, and
environmental mitigation (including reduction of greenhouse gas
emissions and sequestration of carbon).
(b) Program Elements.--The program under this subtitle
shall address the following areas, including improving safety
and minimizing environmental impacts of activities within each
area:
(1) Ultra-deepwater architecture and technology,
including drilling to formations in the Outer
Continental Shelf to depths greater than 15,000 feet.
(2) Unconventional natural gas and other petroleum
resource exploration and production technology.
(3) The technology challenges of small producers.
(4) Complementary research performed by the
National Energy Technology Laboratory for the
Department.
(c) Limitation on Location of Field Activities.--Field
activities under the program under this subtitle shall be
carried out only--
(1) in--
(A) areas in the territorial waters of the
United States not under any Outer Continental
Shelf moratorium as of September 30, 2002;
(B) areas onshore in the United States on
public land administered by the Secretary of
the Interior available for oil and gas leasing,
where consistent with applicable law and land
use plans; and
(C) areas onshore in the United States on
State or private land, subject to applicable
law; and
(2) with the approval of the appropriate Federal or
State land management agency or private land owner.
(d) Activities at the National Energy Technology
Laboratory.--The Secretary, through the National Energy
Technology Laboratory, shall carry out a program of research
and other activities complementary to and supportive of the
research programs under subsection (b).
(e) Consultation With Secretary of the Interior.--In
carrying out this subtitle, the Secretary shall consult
regularly with the Secretary of the Interior.
SEC. 999B. ULTRA-DEEPWATER AND UNCONVENTIONAL ONSHORE NATURAL GAS AND
OTHER PETROLEUM RESEARCH AND DEVELOPMENT PROGRAM.
(a) In General.--The Secretary shall carry out the
activities under section 999A, to maximize the value of natural
gas and other petroleum resources of the United States, by
increasing the supply of such resources, through reducing the
cost and increasing the efficiency of exploration for and
production of such resources, while improving safety and
minimizing environmental impacts.
(b) Role of the Secretary.--The Secretary shall have
ultimate responsibility for, and oversight of, all aspects of
the program under this section.
(c) Role of the Program Consortium.--
(1) In general.--The Secretary shall contract with
a corporation that is structured as a consortium to
administer the programmatic activities outlined in this
chapter. The program consortium shall--
(A) administer the program pursuant to
subsection (f)(3), utilizing program
administration funds only;
(B) issue research project solicitations
upon approval of the Secretary or the
Secretary's designee;
(C) make project awards to research
performers upon approval of the Secretary or
the Secretary's designee;
(D) disburse research funds to research
performers awarded under subsection (f) as
directed by the Secretary in accordance with
the annual plan under subsection (e); and
(E) carry out other activities assigned to
the program consortium by this section.
(2) Limitation.--The Secretary may not assign any
activities to the program consortium except as
specifically authorized under this section.
(3) Conflict of interest.--
(A) Procedures.--The Secretary shall
establish procedures--
(i) to ensure that each board
member, officer, or employee of the
program consortium who is in a
decisionmaking capacity under
subsection (f)(3) shall disclose to the
Secretary any financial interests in,
or financial relationships with,
applicants for or recipients of awards
under this section, including those of
his or her spouse or minor child,
unless such relationships or interests
would be considered to be remote or
inconsequential; and
(ii) to require any board member,
officer, or employee with a financial
relationship or interest disclosed
under clause (i) to recuse himself or
herself from any oversight under
subsection (f)(4) with respect to such
applicant or recipient.
(B) Failure to comply.--The Secretary may
disqualify an application or revoke an award
under this section if a board member, officer,
or employee has failed to comply with
procedures required under subparagraph (A)(ii).
(d) Selection of the Program Consortium.--
(1) In general.--The Secretary shall select the
program consortium through an open, competitive
process.
(2) Members.--The program consortium may include
corporations, trade associations, institutions of
higher education, National Laboratories, or other
research institutions. After submitting a proposal
under paragraph (4), the program consortium may not add
members without the consent of the Secretary.
(3) Requirement of section 501(c)(3) status.--The
Secretary shall not select a consortium under this
section unless such consortium is an organization
described in section 501(c)(3) of the Internal Revenue
Code of 1986 and exempt from tax under such section
501(a) of such Code.
(4) Schedule.--Not later than 90 days after the
date of enactment of this Act, the Secretary shall
solicit proposals from eligible consortia to perform
the duties in subsection (c)(1), which shall be
submitted not later than 180 days after the date of
enactment of this Act. The Secretary shall select the
program consortium not later than 270 days after such
date of enactment.
(5) Application.--Applicants shall submit a
proposal including such information as the Secretary
may require. At a minimum, each proposal shall--
(A) list all members of the consortium;
(B) fully describe the structure of the
consortium, including any provisions relating
to intellectual property; and
(C) describe how the applicant would carry
out the activities of the program consortium
under this section.
(6) Eligibility.--To be eligible to be selected as
the program consortium, an applicant must be an entity
whose members have collectively demonstrated
capabilities and experience in planning and managing
research, development, demonstration, and commercial
application programs for ultra-deepwater and
unconventional natural gas or other petroleum
exploration or production.
(7) Focus areas for awards.--
(A) Ultra-deepwater resources.--Awards from
allocations under section 999H(d)(1) shall
focus on the development and demonstration of
individual exploration and production
technologies as well as integrated systems
technologies including new architectures for
production in ultra-deepwater.
(B) Unconventional resources.--Awards from
allocations under section 999H(d)(2) shall
focus on areas including advanced coalbed
methane, deep drilling, natural gas production
from tight sands, natural gas production from
gas shales, stranded gas, innovative
exploration and production techniques, enhanced
recovery techniques, and environmental
mitigation of unconventional natural gas and
other petroleum resources exploration and
production.
(C) Small producers.--Awards from
allocations under section 999H(d)(3) shall be
made to consortia consisting of small producers
or organized primarily for the benefit of small
producers, and shall focus on areas including
complex geology involving rapid changes in the
type and quality of the oil and gas reservoirs
across the reservoir; low reservoir pressure;
unconventional natural gas reservoirs in
coalbeds, deep reservoirs, tight sands, or
shales; and unconventional oil reservoirs in
tar sands and oil shales.
(e) Annual Plan.--
(1) In general.--The program under this section
shall be carried out pursuant to an annual plan
prepared by the Secretary in accordance with paragraph
(2).
(2) Development.--
(A) Solicitation of recommendations.--
Before drafting an annual plan under this
subsection, the Secretary shall solicit
specific written recommendations from the
program consortium for each element to be
addressed in the plan, including those
described in paragraph (4). The program
consortium shall submit its recommendations in
the form of a draft annual plan.
(B) Submission of recommendations; other
comment.--The Secretary shall submit the
recommendations of the program consortium under
subparagraph (A) to the Ultra-Deepwater
Advisory Committee established under section
999D(a) and to the Unconventional Resources
Technology Advisory Committee established under
section 999D(b), and such Advisory Committees
shall provide to the Secretary written comments
by a date determined by the Secretary. The
Secretary may also solicit comments from any
other experts.
(C) Consultation.--The Secretary shall
consult regularly with the program consortium
throughout the preparation of the annual plan.
(3) Publication.--The Secretary shall transmit to
Congress and publish in the Federal Register the annual
plan, along with any written comments received under
paragraph (2)(A) and (B).
(4) Contents.--The annual plan shall describe the
ongoing and prospective activities of the program under
this section and shall include--
(A) a list of any solicitations for awards
to carry out research, development,
demonstration, or commercial application
activities, including the topics for such work,
who would be eligible to apply, selection
criteria, and the duration of awards; and
(B) a description of the activities
expected of the program consortium to carry out
subsection (f)(3).
(5) Estimates of increased royalty receipts.--The
Secretary, in consultation with the Secretary of the
Interior, shall provide an annual report to Congress
with the President's budget on the estimated cumulative
increase in Federal royalty receipts (if any) resulting
from the implementation of this subtitle. The initial
report under this paragraph shall be submitted in the
first President's budget following the completion of
the first annual plan required under this subsection.
(f) Awards.--
(1) In general.--Upon approval of the Secretary the
program consortium shall make awards to research
performers to carry out research, development,
demonstration, and commercial application activities
under the program under this section. The program
consortium shall not be eligible to receive such
awards, but provided that conflict of interest
procedures in section 999B(c)(3) are followed, entities
who are members of the program consortium are not
precluded from receiving research awards as either
individual research performers or as research
performers who are members of a research collaboration.
(2) Proposals.--Upon approval of the Secretary the
program consortium shall solicit proposals for awards
under this subsection in such manner and at such time
as the Secretary may prescribe, in consultation with
the program consortium.
(3) Oversight.--
(A) In general.--The program consortium
shall oversee the implementation of awards
under this subsection, consistent with the
annual plan under subsection (e), including
disbursing funds and monitoring activities
carried out under such awards for compliance
with the terms and conditions of the awards.
(B) Effect.--Nothing in subparagraph (A)
shall limit the authority or responsibility of
the Secretary to oversee awards, or limit the
authority of the Secretary to review or revoke
awards.
(g) Administrative Costs.--
(1) In general.--To compensate the program
consortium for carrying out its activities under this
section, the Secretary shall provide to the program
consortium funds sufficient to administer the program.
This compensation may include a management fee
consistent with Department of Energy contracting
practices and procedures.
(2) Advance.--The Secretary shall advance funds to
the program consortium upon selection of the
consortium, which shall be deducted from amounts to be
provided under paragraph (1).
(h) Audit.--The Secretary shall retain an independent
auditor, which shall include a review by the General
Accountability Office, to determine the extent to which funds
provided to the program consortium, and funds provided under
awards made under subsection (f), have been expended in a
manner consistent with the purposes and requirements of this
subtitle. The auditor shall transmit a report (including any
review by the General Accountability Office) annually to the
Secretary, who shall transmit the report to Congress, along
with a plan to remedy any deficiencies cited in the report.
(i) Activities by the United States Geological Survey.--The
Secretary of the Interior, through the United States Geological
Survey, shall, where appropriate, carry out programs of long-
term research to complement the programs under this section.
(j) Program Review and Oversight.--The National Energy
Technology Laboratory, on behalf of the Secretary, shall (1)
issue a competitive solicitation for the program consortium,
(2) evaluate, select, and award a contract or other agreement
to a qualified program consortium, and (3) have primary review
and oversight responsibility for the program consortium,
including review and approval of research awards proposed to be
made by the program consortium, to ensure that its activities
are consistent with the purposes and requirements described in
this subtitle. Up to 5 percent of program funds allocated under
paragraphs (1) through (3) of section 999H(d) may be used for
this purpose, including program direction and the establishment
of a site office if determined to be necessary to carry out the
purposes of this subsection.
SEC. 999C. ADDITIONAL REQUIREMENTS FOR AWARDS.
(a) Demonstration Projects.--An application for an award
under this subtitle for a demonstration project shall describe
with specificity the intended commercial use of the technology
to be demonstrated.
(b) Flexibility in Locating Demonstration Projects.--
Subject to the limitation in section 999A(c), a demonstration
project under this subtitle relating to an ultra-deepwater
technology or an ultra-deepwater architecture may be conducted
in deepwater depths.
(c) Intellectual Property Agreements.--If an award under
this subtitle is made to a consortium (other than the program
consortium), the consortium shall provide to the Secretary a
signed contract agreed to by all members of the consortium
describing the rights of each member to intellectual property
used or developed under the award.
(d) Technology Transfer.--2.5 percent of the amount of each
award made under this subtitle shall be designated for
technology transfer and outreach activities under this
subtitle.
(e) Cost Sharing Reduction for Independent Producers.--In
applying the cost sharing requirements under section 988 to an
award under this subtitle the Secretary may reduce or eliminate
the non-Federal requirement if the Secretary determines that
the reduction is necessary and appropriate considering the
technological risks involved in the project.
(f) Information Sharing.--All results of the research
administered by the program consortium shall be made available
to the public consistent with Department policy and practice on
information sharing and intellectual property agreements.
SEC. 999D. ADVISORY COMMITTEES.
(a) Ultra-Deepwater Advisory Committee.--
(1) Establishment.--Not later than 270 days after
the date of enactment of this Act, the Secretary shall
establish an advisory committee to be known as the
Ultra-Deepwater Advisory Committee.
(2) Membership.--The Advisory Committee under this
subsection shall be composed of members appointed by
the Secretary, including--
(A) individuals with extensive research
experience or operational knowledge of offshore
natural gas and other petroleum exploration and
production;
(B) individuals broadly representative of
the affected interests in ultra-deepwater
natural gas and other petroleum production,
including interests in environmental protection
and safe operations;
(C) no individuals who are Federal
employees; and
(D) no individuals who are board members,
officers, or employees of the program
consortium.
(3) Duties.--The Advisory Committee under this
subsection shall--
(A) advise the Secretary on the development
and implementation of programs under this
subtitle related to ultra-deepwater natural gas
and other petroleum resources; and
(B) carry out section 999B(e)(2)(B).
(4) Compensation.--A member of the Advisory
Committee under this subsection shall serve without
compensation but shall receive travel expenses in
accordance with applicable provisions under subchapter
I of chapter 57 of title 5, United States Code.
(b) Unconventional Resources Technology Advisory
Committee.--
(1) Establishment.--Not later than 270 days after
the date of enactment of this Act, the Secretary shall
establish an advisory committee to be known as the
Unconventional Resources Technology Advisory Committee.
(2) Membership.--The Secretary shall endeavor to
have a balanced representation of members on the
Advisory Committee to reflect the breadth of geographic
areas of potential gas supply. The Advisory Committee
under this subsection shall be composed of members
appointed by the Secretary, including--
(A) a majority of members who are employees
or representatives of independent producers of
natural gas and other petroleum, including
small producers;
(B) individuals with extensive research
experience or operational knowledge of
unconventional natural gas and other petroleum
resource exploration and production;
(C) individuals broadly representative of
the affected interests in unconventional
natural gas and other petroleum resource
exploration and production, including interests
in environmental protection and safe
operations;
(D) individuals with expertise in the
various geographic areas of potential supply of
unconventional onshore natural gas and other
petroleum in the United States;
(E) no individuals who are Federal
employees; and
(F) no individuals who are board members,
officers, or employees of the program
consortium.
(3) Duties.--The Advisory Committee under this
subsection shall--
(A) advise the Secretary on the development
and implementation of activities under this
subtitle related to unconventional natural gas
and other petroleum resources; and
(B) carry out section 999B(e)(2)(B).
(4) Compensation.--A member of the Advisory
Committee under this subsection shall serve without
compensation but shall receive travel expenses in
accordance with applicable provisions under subchapter
I of chapter 57 of title 5, United States Code.
(c) Prohibition.--No advisory committee established under
this section shall make recommendations on funding awards to
particular consortia or other entities, or for specific
projects.
SEC. 999E. LIMITS ON PARTICIPATION.
An entity shall be eligible to receive an award under this
subtitle only if the Secretary finds--
(1) that the entity's participation in the program
under this subtitle would be in the economic interest
of the United States; and
(2) that either--
(A) the entity is a United States-owned
entity organized under the laws of the United
States; or
(B) the entity is organized under the laws
of the United States and has a parent entity
organized under the laws of a country that
affords--
(i) to United States-owned entities
opportunities, comparable to those
afforded to any other entity, to
participate in any cooperative research
venture similar to those authorized
under this subtitle;
(ii) to United States-owned
entities local investment opportunities
comparable to those afforded to any
other entity; and
(iii) adequate and effective
protection for the intellectual
property rights of United States-owned
entities.
SEC. 999F. SUNSET.
The authority provided by this subtitle shall terminate on
September 30, 2014.
SEC. 999G. DEFINITIONS.
In this subtitle:
(1) Deepwater.--The term ``deepwater'' means a
water depth that is greater than 200 but less than
1,500 meters.
(2) Independent producer of oil or gas.--
(A) In general.--The term ``independent
producer of oil or gas'' means any person that
produces oil or gas other than a person to whom
subsection (c) of section 613A of the Internal
Revenue Code of 1986 does not apply by reason
of paragraph (2) (relating to certain
retailers) or paragraph (4) (relating to
certain refiners) of section 613A(d) of such
Code.
(B) Rules for applying paragraphs (2) and
(4) of section 613a(d).--For purposes of
subparagraph (A), paragraphs (2) and (4) of
section 613A(d) of the Internal Revenue Code of
1986 shall be applied by substituting
``calendar year'' for ``taxable year'' each
place it appears in such paragraphs.
(3) Program administration funds.--The term
``program administration funds'' means funds used by
the program consortium to administer the program under
this subtitle, but not to exceed 10 percent of the
total funds allocated under paragraphs (1) through (3)
of section 999H(d).
(4) Program consortium.--The term ``program
consortium'' means the consortium selected under
section 999B(d).
(5) Program research funds.--The term ``program
research funds'' means funds awarded to research
performers by the program consortium consistent with
the annual plan.
(6) Remote or inconsequential.--The term ``remote
or inconsequential'' has the meaning given that term in
regulations issued by the Office of Government Ethics
under section 208(b)(2) of title 18, United States
Code.
(7) Small producer.--The term ``small producer''
means an entity organized under the laws of the United
States with production levels of less than 1,000
barrels per day of oil equivalent.
(8) Ultra-deepwater.--The term ``ultra-deepwater''
means a water depth that is equal to or greater than
1,500 meters.
(9) Ultra-deepwater architecture.--The term
``ultra-deepwater architecture'' means the integration
of technologies for the exploration for, or production
of, natural gas or other petroleum resources located at
ultra-deepwater depths.
(10) Ultra-deepwater technology.--The term ``ultra-
deepwater technology'' means a discrete technology that
is specially suited to address 1 or more challenges
associated with the exploration for, or production of,
natural gas or other petroleum resources located at
ultra-deepwater depths.
(11) Unconventional natural gas and other petroleum
resource.--The term ``unconventional natural gas and
other petroleum resource'' means natural gas and other
petroleum resource located onshore in an economically
inaccessible geological formation, including resources
of small producers.
SEC. 999H. FUNDING.
(a) Oil and Gas Lease Income.--For each of fiscal years
2007 through 2017, from any Federal royalties, rents, and
bonuses derived from Federal onshore and offshore oil and gas
leases issued under the Outer Continental Shelf Lands Act (43
U.S.C. 1331 et seq.) and the Mineral Leasing Act (30 U.S.C. 181
et seq.) which are deposited in the Treasury, and after
distribution of any such funds as described in subsection (c),
$50,000,000 shall be deposited into the Ultra-Deepwater and
Unconventional Natural Gas and Other Petroleum Research Fund
(in this section referred to as the ``Fund''). For purposes of
this section, the term ``royalties'' excludes proceeds from the
sale of royalty production taken in kind and royalty production
that is transferred under section 27(a)(3) of the Outer
Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
(b) Obligational Authority.--Monies in the Fund shall be
available to the Secretary for obligation under this part
without fiscal year limitation, to remain available until
expended.
(c) Prior Distributions.--The distributions described in
subsection (a) are those required by law--
(1) to States and to the Reclamation Fund under the
Mineral Leasing Act (30 U.S.C. 191(a)); and
(2) to other funds receiving monies from Federal
oil and gas leasing programs, including--
(A) any recipients pursuant to section 8(g)
of the Outer Continental Shelf Lands Act (43
U.S.C. 1337(g));
(B) the Land and Water Conservation Fund,
pursuant to section 2(c) of the Land and Water
Conservation Fund Act of 1965 (16 U.S.C. 4601-
5(c));
(C) the Historic Preservation Fund,
pursuant to section 108 of the National
Historic Preservation Act (16 U.S.C. 470h); and
(D) the coastal impact assistance program
established under section 31 of the Outer
Continental Shelf Lands Act (as amended by
section 384).
(d) Allocation.--Amounts obligated from the Fund under
subsection (a)(1) in each fiscal year shall be allocated as
follows:
(1) 35 percent shall be for activities under
section 999A(b)(1).
(2) 32.5 percent shall be for activities under
section 999A(b)(2).
(3) 7.5 percent shall be for activities under
section 999A(b)(3).
(4) 25 percent shall be for complementary research
under section 999A(b)(4) and other activities under
section 999A(b) to include program direction funds,
overall program oversight, contract management, and the
establishment and operation of a technical committee to
ensure that in-house research activities funded under
section 999A(b)(4) are technically complementary to,
and not duplicative of, research conducted under
paragraphs (1), (2), and (3) of section 999A(b).
(e) Authorization of Appropriations.--In addition to other
amounts that are made available to carry out this section,
there is authorized to be appropriated to carry out this
section $100,000,000 for each of fiscal years 2007 through
2016.
(f) Fund.--There is hereby established in the Treasury of
the United States a separate fund to be known as the ``Ultra-
Deepwater and Unconventional Natural Gas and Other Petroleum
Research Fund''.
TITLE X--DEPARTMENT OF ENERGY MANAGEMENT
SEC. 1001. IMPROVED TECHNOLOGY TRANSFER OF ENERGY TECHNOLOGIES.
(a) Technology Transfer Coordinator.--The Secretary shall
appoint a Technology Transfer Coordinator to be the principal
advisor to the Secretary on all matters relating to technology
transfer and commercialization.
(b) Qualifications.--The Coordinator shall be an individual
who, by reason of professional background and experience, is
specially qualified to advise the Secretary on matters
pertaining to technology transfer at the Department.
(c) Duties of the Coordinator.--The Coordinator shall
oversee--
(1) the activities of the Technology Transfer
Working Group established under subsection (d);
(2) the expenditure of funds allocated for
technology transfer within the Department;
(3) the activities of each technology partnership
ombudsman appointed under section 11 of the Technology
Transfer Commercialization Act of 2000 (42 U.S.C.
7261c); and
(4) efforts to engage private sector entities,
including venture capital companies.
(d) 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 opportunities and
procedures related to alternative approaches to
resolution of disputes involving intellectual property
rights and other technology transfer matters.
(e) Technology Commercialization Fund.--The Secretary shall
establish an Energy Technology Commercialization Fund, using
0.9 percent of the amount made available to the Department for
applied energy research, development, demonstration, and
commercial application for each fiscal year, to be used to
provide matching funds with private partners to promote
promising energy technologies for commercial purposes.
(f) Technology Transfer Responsibility.--Nothing in this
section affects the technology transfer responsibilities of
Federal employees under the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3701 et seq.).
(g) Planning and Reporting.--
(1) In general.--Not later than 180 days after the
date of enactment of this Act, the Secretary shall
submit to Congress a technology transfer execution
plan.
(2) Updates.--Each year after the submission of the
plan under paragraph (1), the Secretary shall submit to
Congress an updated execution plan and reports that
describe progress toward meeting goals set forth in the
execution plan and the funds expended under subsection
(e).
SEC. 1002. TECHNOLOGY INFRASTRUCTURE PROGRAM.
(a) Definitions.--In this section:
(1) Program.--The term ``Program'' means the
Technology Infrastructure Program established under
subsection (b).
(2) Technology cluster.--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.
(3) Technology-related business concern.--The term
``technology-related business concern'' means a for-
profit corporation, company, association, firm,
partnership, or small business concern that--
(A) conducts scientific or engineering
research;
(B) develops new technologies;
(C) manufactures products based on new
technologies; or
(D) performs technological services.
(b) Establishment.--The Secretary shall establish a
Technology Infrastructure Program in accordance with this
section.
(c) Purpose.--The purpose of the 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--
(A) National Laboratories or single-purpose
research facilities; and
(B) entities that can support departmental
missions at the National Laboratories or
single-purpose research facilities, such as--
(i) institutions of higher
education;
(ii) technology-related business
concerns;
(iii) nonprofit institutions; and
(iv) agencies of State, tribal, or
local governments.
(d) Projects.--The Secretary shall authorize the director
of each National Laboratory or single-purpose research facility
to implement the Program at the National Laboratory or facility
through 1 or more projects that meet the requirements of
subsections (e) and (f).
(e) Program Requirements.--
(1) In general.--Each project funded under this
section shall meet the requirements of this subsection.
(2) Entities.--Each project shall include at least
1 of each of the following entities:
(A) A business.
(B) An institution of higher education.
(C) A nonprofit institution.
(D) An agency of a State, local, or tribal
government.
(3) Cost-sharing.--
(A) In general.--The costs of carrying out
projects under this section shall be shared in
accordance with section 988.
(B) Sources.--The calculation of costs paid
by the non-Federal sources for a project shall
include cash, personnel, services, equipment,
and other resources expended on the project
after the commencement of the project.
(C) Research and development expenses.--
Independent research and development expenses
of Government contractors that qualify for
reimbursement under section 31.205-18(e) of
title 48, Code of Federal 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.
(4) Competitive selection.--A project under this
section shall be competitively selected using
procedures determined by the Secretary.
(5) Accounting.--Any participant that receives
funds under this section may use generally accepted
accounting principles for maintaining accounts, books,
and records relating to the project.
(6) Duration.--No Federal funds shall be made
available under this section for a construction project
or for any project with a duration of more than 5
years.
(f) Selection Criteria.--
(1) Departmental missions.--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) Other criteria.--In selecting a project to
receive Federal funds, the Secretary shall consider--
(A) the potential of the project to promote
the development of a commercially sustainable
technology cluster following the period of
investment by the Department, 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.
(g) 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 the activities with the
project.
(h) Report to Congress.--Not later than July 1, 2008, the
Secretary shall submit to Congress a report on whether the
Program should be continued and, if so, how the program should
be managed.
(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 2006 through 2008.
SEC. 1003. 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 (as defined in
section 8(a)(4) of the Small Business Act (15 U.S.C.
637(a)(4))), 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 business concerns
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 the
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 with--
(1) assistance directed at making the small
business concerns more effective and efficient
subcontractors or suppliers to the National Laboratory
or single-purpose research facilities; or
(2) general technical assistance, the cost of which
shall not exceed $10,000 per instance of assistance, to
improve the products or services of the small business
concern.
(c) Use of Funds.--None of the funds expended under
subsection (b) may be used for direct grants to small business
concerns.
(d) 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 2006 through 2008.
SEC. 1004. OUTREACH.
The Secretary shall ensure that each program authorized by
this Act or an amendment made by this Act 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. 1005. RELATIONSHIP TO OTHER LAWS.
Except as otherwise provided in this Act or an amendment
made by this Act, the Secretary shall carry out the research,
development, demonstration, and commercial application
programs, projects, and activities authorized by this Act or an
amendment made by this Act in accordance with the applicable
provisions of--
(1) the Atomic Energy Act of 1954 (42 U.S.C. 2011
et seq.);
(2) the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5901 et seq.);
(3) the Energy Policy Act of 1992 (42 U.S.C. 13201
et seq.);
(4) the Stevenson-Wydler Technology Innovation Act
of 1980 (15 U.S.C. 3701 et seq.);
(5) chapter 18 of title 35, United States Code
(commonly known as the ``Bayh-Dole Act''); and
(6) any other Act under which the Secretary is
authorized to carry out the programs, projects, and
activities.
SEC. 1006. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND
TECHNOLOGY PROGRAMS.
(a) Effective Top-Level Coordination of Research and
Development Programs.--Section 202 of the Department of Energy
Organization Act (42 U.S.C. 7132) is amended by striking
subsection (b) and inserting the following:
``(b)(1) There shall be in the Department an Under
Secretary for Science, who shall be appointed by the President,
by and with the advice and consent of the Senate.
``(2) 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.
``(3) The Under Secretary for 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.
``(4) The Under Secretary for Science shall--
``(A) serve as the Science and Technology Advisor
to the Secretary;
``(B) monitor the research and development programs
of the Department in order to advise the Secretary with
respect to any undesirable duplication or gaps in the
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;
``(F) advise the Secretary with respect to long-
term planning, coordination, and development of a
strategic framework for Department research and
development activities; and
``(G) carry out such additional duties assigned to
the Under Secretary by the Secretary relating to basic
and applied research, including 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.''.
(b) Additional Assistant Secretary Position.--
(1) In general.--Section 203(a) of the Department
of Energy Organization Act (42 U.S.C. 7133(a)) is
amended in the first sentence by striking ``six
Assistant Secretaries'' and inserting ``7 Assistant
Secretaries''.
(2) Assistant secretary level.--It is the sense of
Congress that the leadership for departmental missions
in nuclear energy should be at the Assistant Secretary
level.
(c) Technical and Conforming Amendments.--
(1) Section 202 of the Department of Energy
Organization Act (42 U.S.C. 7132) is amended by adding
at the end the following:
``(d)(1) 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.
``(2) 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)(1) 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.
``(2) 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 striking ``Assistant Secretaries of Energy
(6)'' and inserting ``Assistant Secretaries of Energy
(7)''.
(4) Section 209(b) of the Department of Energy
Organization Act (42 U.S.C. 7139(b)) is amended by
striking paragraph (6) and inserting the following:
``(6) to carry out such additional duties assigned
to the Office by the Secretary.''.
SEC. 1007. 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 authority granted to the Secretary
under any other provision of law, the Secretary may exercise
the same authority to enter into transactions (other than
contracts, cooperative agreements, and grants), subject to the
same terms and conditions as the Secretary of Defense under
section 2371 of title 10, United States Code (other than
subsections (b) and (f) of that section).
``(2) In applying section 2371 of title 10, United States
Code, to the Secretary under paragraph (1)--
``(A) the term `basic' shall be replaced by the
term `research';
``(B) the term `applied' shall be replaced by the
term `development'; and
``(C) the terms `advanced research projects' and
`advanced research' shall be replaced by the term
`demonstration projects'.
``(3) The authority of the Secretary under paragraph (1)
shall not be subject to--
``(A) section 9 of the Federal Nonnuclear Energy
Research and Development Act of 1974 (42 U.S.C. 5908);
or
``(B) section 152 of the Atomic Energy Act of 1954
(42 U.S.C. 2182).
``(4)(A) The Secretary shall use such competitive, merit-
based selection procedures in entering into transactions under
paragraph (1), as the Secretary determines in writing to be
practicable.
``(B) A transaction under paragraph (1) shall relate to a
research, development, or demonstration project only if the
Secretary determines in writing that the use of a standard
contract, grant, or cooperative agreement for the project is
not feasible or appropriate.
``(5) The Secretary may protect from disclosure, for up to
5 years after the date on which the information is developed,
any information developed pursuant to a transaction under
paragraph (1) that 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.
``(6)(A) Not later than 90 days after the date of enactment
of this subsection, the Secretary shall issue guidelines for
transactions under paragraph (1).
``(B) The guidelines shall be published in the Federal
Register for public comment in accordance with rulemaking
procedures of the Department.
``(C) The Secretary shall not have authority to carry out
transactions under paragraph (1) until the guidelines for
transactions required under subparagraph (A) are final.
``(7) The annual report of the head of an executive agency
under section 2371(h) of title 10, United States Code, shall be
submitted to Congress.
``(8)(A) In this paragraph, the term `nontraditional
Government contractor' has the meaning given the term
`nontraditional defense contractor' in section 845(f) of the
National Defense Authorization Act for Fiscal Year 1994 (Public
Law 103-160; 10 U.S.C. 2371 note).
``(B) Not later than 1 year after the date on which the
final guidelines are published under paragraph (6), the
Comptroller General of the United States shall submit to
Congress a report describing--
``(i) the use by the Department of authorities
under this section, including the ability to attract
nontraditional Government contractors; and
``(ii) whether additional safeguards are necessary
to carry out the authorities.
``(9) 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.
``(10) Notwithstanding any other provision of law, the
authority to enter into transactions under paragraph (1) shall
terminate on September 30, 2010.''.
SEC. 1008. PRIZES FOR ACHIEVEMENT IN GRAND CHALLENGES OF SCIENCE AND
TECHNOLOGY.
(a) Authority.--The Secretary may carry out a program to
award cash prizes in recognition of breakthrough achievements
in research, development, demonstration, and commercial
application that have the potential for application to the
performance of the mission of the Department.
(b) Competition Requirements.--The program under subsection
(a) may include prizes for the achievement of goals articulated
by the Secretary in a specific area through a widely advertised
solicitation of submission of results for research,
development, demonstration, or commercial application projects.
(c) Prizes for Processes and Technologies To Reduce
Dependence on Imported Oil.--The Secretary, in cooperation with
the Freedom Prize Foundation, shall support a program of
awarding prizes, to be known as Freedom Prizes, to encourage
and recognize the development and deployment of processes and
technologies that serve to reduce the dependence of the United
States on imported oil.
(d) Relationship to Other Authority.--The program under
subsection (a) may be carried out in conjunction with or in
addition to the exercise of any other authority of the
Secretary to acquire, support, or stimulate research,
development, demonstration, or commercial application projects.
(e) Authorization of Appropriations.--There are authorized
to be appropriated--
(1) $10,000,000 to carry out the program under
subsection (a); and
(2) $5,000,000 to carry out the program under
subsection (c).
SEC. 1009. TECHNICAL CORRECTIONS.
(a) Coal Research and Development.--
(1) In general.--Public Law 86-599 (30 U.S.C. 661
et seq.) is amended--
(A) by striking the first section (30
U.S.C. 661) and inserting the following:
``Sec. 1. (a) This Act may be cited as the `Coal Research
and Development Act of 1960'.
``(b) In this Act:
``(1) The term `research' means scientific,
technical, and economic research and the practical
application of that research.
``(2) The term `Secretary' means the Secretary of
Energy.'';
(B) in section 2 (30 U.S.C. 662), by
striking ``shall establish within'' and all
that follows through ``such Office'';
(C) by striking sections 3, 4, and 7 (30
U.S.C. 663, 664, 667); and
(D) by redesignating sections 5, 6, and 8
(30 U.S.C. 665, 666, 668) as sections 3, 4, and
5, respectively.
(2) Patents.--Section 210(a)(8) of title 35, United
States Code, is amended by striking ``Coal Research
Development Act of 1960'' and inserting ``Coal Research
and Development Act of 1960''.
(b) Nonnuclear Energy Research and Development.--
(1) Short title; definitions.--Section 1 of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5902) is amended to read as follows:
``SHORT TITLE AND DEFINITIONS
``Sec. 1. (a) This Act may be cited as the `Federal
Nonnuclear Energy Research and Development Act of 1974''.
``(b) In this Act:
``(1) The term `Department' means the Department of
Energy.
``(2) The term `Secretary' means the Secretary of
Energy.''.
(2) Statement of policy.--Section 3(b) of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5902(b)) is amended--
(A) in paragraph (1), by striking ``Energy
Research and Development Administration'' and
inserting ``Department'';
(B) in paragraph (2), by striking
``Administrator of the Energy Research and
Development Administration (hereinafter in this
Act referred to as the `Administrator')'' and
inserting ``Secretary''; and
(C) in paragraph (3)--
(i) by striking ``Administrator''
and inserting ``Secretary''; and
(ii) by inserting ``Demonstration''
after ``Cooling''.
(3) Duties and authorities.--Section 4 of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5903) is amended--
(A) by striking the section heading and
inserting the following: ``duties and
authorities of the secretary''; and
(B) in the matter preceding subsection (a),
by striking ``Administrator'' and inserting
``Secretary''.
(4) Comprehensive planning and programming.--
Section 6 of the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5905) is amended--
(A) by striking ``Administrator'' each
place it appears and inserting ``Secretary'';
and
(B) in subsection (b)(3)--
(i) in subparagraph (I), by
inserting ``Demonstration'' after
``Cooling''; and
(ii) in subparagraph (L), by
inserting ``Energy'' after ``Solar''.
(5) Forms of federal assistance.--Section 7 of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5906) is amended--
(A) by striking ``Administrator'' each
place it appears and inserting ``Secretary'';
and
(B) in subsection (a)(4), by striking ``of
the section''.
(6) Demonstrations.--Section 8 of the Federal
Nonnuclear Energy Research and Development Act of 1974
(42 U.S.C. 5907) is amended--
(A) in subsections (a) through (c), by
striking ``Administrator'' each place it
appears and inserting ``Secretary'';
(B) in subsection (d)--
(i) in the first sentence of
paragraph (1), by inserting ``of the
Energy Research and Development
Administration'' after
``Administrator''; and
(ii) in paragraph (3), by striking
``Administrator'' and inserting
``Secretary''; and
(C) in subsection (f)--
(i) by striking ``Administrator''
each place it appears and inserting
``Secretary''; and
(ii) in the proviso of the first
sentence, by striking
``Administrator's'' and inserting
``Secretary's''.
(7) Patent policy.--Section 9 of the Federal
Nonnuclear Energy Research and Development Act of 1974
(42 U.S.C. 5908) is amended--
(A) by striking ``Administration'' each
place it appears and inserting ``Department'';
(B) by striking ``Administrator'' each
place it appears and inserting ``Secretary'';
and
(C) in subsection (c)(3), by striking
``Administration's'' and inserting
``Department's''.
(8) Acquisition of essential materials.--Section 12
of the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5911) is amended by
striking subsection (b) and inserting the following:
``(b) A rule or order under subsection (a) shall be
considered to be a major rule subject to chapter 8 of title 5,
United States Code.''.
(9) Water resource evaluation.--Section 13 of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5912) is amended by striking
``Administrator'' each place it appears and inserting
``Secretary''.
(10) Authorization of appropriations.--Section 16
of the Federal Nonnuclear Energy Research and
Development Act of 1974 (42 U.S.C. 5915) is amended--
(A) by striking the section heading and
inserting the following: ``authorization of
appropriations'';
(B) by striking ``(a) There may be
appropriated to the Administrator'' and
inserting ``There may be appropriated to the
Secretary''; and
(C) by striking subsections (b) and (c).
(11) Central source of nonnuclear energy
information.--Section 17 of the Federal Nonnuclear
Energy Research and Development Act of 1974 (42 U.S.C.
5916) is amended--
(A) by striking ``Administrator'' each
place it appears and inserting ``Secretary'';
(B) in the first sentence, by striking
``Administrator's'';
(C) in the second sentence, by striking
``he'' and inserting ``the Secretary'';
(D) in the third sentence--
(i) in paragraph (2) of the first
proviso, by striking ``section 1905 or
title 18'' and inserting ``section 1905
of title 18''; and
(ii) in subparagraph (B) of the
second proviso--
(I) by striking ``the
Federal Energy
Administration,'';
(II) by striking ``the
Federal Power Commission,'' and
inserting ``the Federal Energy
Regulatory Commission''; and
(III) by striking ``General
Accounting Office'' and
inserting ``Government
Accountability Office''; and
(E) in the last sentence, by inserting ``or
ranking minority member'' after ``chairman''.
(12) Energy information, loan guarantees, and
financial support.--Sections 18 through 20 of the
Federal Nonnuclear Energy Research and Development Act
of 1974 (42 U.S.C. 5917 through 5920) are repealed.
(c) Stevenson-Wydler Technology Innovation Act of 1980.--
Section 20 of the Stevenson-Wydler Technology Innovation Act of
1980 (15 U.S.C. 3712) is amended by striking ``and the National
Science Foundation'' and inserting ``, the Secretary of Energy,
and the Director of the National Science Foundation''.
SEC. 1010. UNIVERSITY COLLABORATION.
Not later than 2 years after the date of enactment of this
Act, the Secretary shall transmit to the Congress a report that
examines the feasibility of promoting collaborations between
major universities and other colleges and universities in
grants, contracts, and cooperative agreements made by the
Secretary for energy projects. For purposes of this section,
major universities are schools listed by the Carnegie
Foundation as Doctoral Research Extensive Universities. The
Secretary shall also consider providing incentives to increase
the inclusion of small institutions of higher education,
including minority-serving institutions, in energy grants,
contracts, and cooperative agreements.
SEC. 1011. SENSE OF CONGRESS.
It is the sense of Congress that--
(1) the Secretary should develop and implement more
stringent procurement and inventory controls, including
controls on the purchase card program, to prevent
waste, fraud, and abuse of taxpayer funds by employees
and contractors of the Department; and
(2) the Department's Inspector General should
continue to closely review purchase card purchases and
other procurement and inventory practices at the
Department.
TITLE XI--PERSONNEL AND TRAINING
SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.
(a) Definitions.--In this section:
(1) Energy technology industry.--The term ``energy
technology industry'' includes--
(A) a renewable energy industry;
(B) a company that develops or
commercializes a device to increase energy
efficiency;
(C) the oil and gas industry;
(D) the nuclear power industry;
(E) the coal industry;
(F) the electric utility industry; and
(G) any other industrial sector, as the
Secretary determines to be appropriate.
(2) Skilled technical personnel.--The term
``skilled technical personnel'' means--
(A) journey- and apprentice-level workers
who are enrolled in, or have completed, a
federally-recognized or State-recognized
apprenticeship program; and
(B) other skilled workers in energy
technology industries, as determined by the
Secretary.
(b) Workforce Trends.--
(1) Monitoring.--The Secretary, in consultation
with, and using data collected by, the Secretary of
Labor, shall monitor trends in the workforce of--
(A) skilled technical personnel that
support energy technology industries; and
(B) electric power and transmission
engineers.
(2) Report on trends.--Not later than 1 year after
the date of enactment of this Act, the Secretary shall
submit to Congress a report on current trends under
paragraph (1), with recommendations (as appropriate) to
meet the future labor requirements for the energy
technology industries.
(3) Report on shortage.--As soon as practicable
after the date on which the Secretary identifies or
predicts a significant national shortage of skilled
technical personnel in 1 or more energy technology
industries, the Secretary shall submit to Congress a
report describing the shortage.
(c) Traineeship Grants for Skilled Technical Personnel.--
The Secretary, in consultation with the Secretary of Labor, may
establish programs in the appropriate offices of the Department
under which the Secretary provides grants to enhance training
(including distance learning) for any workforce category for
which a shortage is identified or predicted under subsection
(b)(2).
(d) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this section $20,000,000 for
each of fiscal years 2006 through 2008.
SEC. 1102. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.
(a) Science Education Enhancement Fund.--Section 3164 of
the Department of Energy Science Education Enhancement Act (42
U.S.C. 7381a) is amended by adding at the end:
``(c) Science Education Enhancement Fund.--The Secretary
shall use not less than 0.3 percent of the amount made
available to the Department for research, development,
demonstration, and commercial application for fiscal year 2006
and each fiscal year thereafter to carry out activities
authorized by this part.''.
(b) Authorized Education Activities.--Section 3165 of the
Department of Energy Science Education Enhancement Act (42
U.S.C. 7381b) is amended by adding at the end the following:
``(14) Support competitive events for students
under the supervision of teachers, designed to
encourage student interest and knowledge in science and
mathematics.
``(15) Support competitively-awarded, peer-reviewed
programs to promote professional development for
mathematics teachers and science teachers who teach in
grades from kindergarten through grade 12 at Department
research and development facilities.
``(16) Support summer internships at Department
research and development facilities, for mathematics
teachers and science teachers who teach in grades from
kindergarten through grade 12.
``(17) Sponsor and assist in educational and
training activities identified as critical skills needs
for future workforce development at Department research
and development facilities.''.
(c) Educational Partnerships.--Section 3166(b) of the
Department of Energy Science Education Enhancement Act (42
U.S.C. 7381c(b)) is amended--
(1) by striking paragraph (1) and inserting the
following:
``(1) loaning or transferring equipment to the
institution;'';
(2) in paragraph (5), by striking ``and'' at the
end;
(3) in paragraph (6), by striking the period at the
end and inserting ``; and''; and
(4) by adding at the end the following:
``(7) providing funds to educational institutions
to hire personnel to facilitate interactions between
local school systems, Department research and
development facilities, and corporate and governmental
entities.''.
(d) Definition of Department Research and Development
Facilities.--Section 3167(3) of the Department of Energy
Science Education Enhancement Act (42 U.S.C. 7381d(3)) is
amended by striking ``from the Office of Science of the
Department of Energy'' and inserting ``by the Department of
Energy''.
(e) Study.--
(1) In general.--The Secretary, in consultation
with the Secretary of Education, shall enter into an
arrangement with the National Academy of Public
Administration to conduct a study of the priorities,
quality, local and regional flexibility, and plans for
educational programs at Department research and
development facilities.
(2) Inclusion.--The study shall recommend measures
that the Secretary may take to improve Department-wide
coordination of educational, workforce development, and
critical skills development activities.
(3) Report.--Not later than 2 years after the date
of enactment of this Act, the Secretary shall submit to
Congress a report on the results of the study conducted
under this subsection.
SEC. 1103. TRAINING GUIDELINES FOR NONNUCLEAR ELECTRIC ENERGY INDUSTRY
PERSONNEL.
(a) In General.--The Secretary of Labor, in consultation
with the Secretary and in conjunction with the electric
industry and recognized employee representatives, shall develop
model personnel training guidelines to support the reliability
and safety of the nonnuclear electric system.
(b) Requirements.--The training guidelines under subsection
(a) shall, at a minimum--
(1) include training requirements for workers
engaged in the construction, operation, inspection, or
maintenance of nonnuclear electric generation,
transmission, or distribution systems, including
requirements relating to--
(A) competency;
(B) certification; and
(C) assessment, including--
(i) initial and continuous
evaluation of workers;
(ii) recertification procedures;
and
(iii) methods for examining or
testing the qualification of an
individual who performs a covered task;
and
(2) consolidate training guidelines in existence on
the date on which the guidelines under subsection (a)
are developed relating to the construction, operation,
maintenance, and inspection of nonnuclear electric
generation, transmission, and distribution facilities,
such as guidelines established by the National Electric
Safety Code and other industry consensus standards.
SEC. 1104. NATIONAL CENTER FOR ENERGY MANAGEMENT AND BUILDING
TECHNOLOGIES.
The Secretary shall support the ongoing activities of and
explore opportunities for expansion of the National Center for
Energy Management and Building Technologies to carry out
research, education, and training activities to facilitate the
improvement of energy efficiency, indoor environmental quality,
and security of industrial, commercial, residential, and public
buildings.
SEC. 1105. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL
CAREERS.
(a) Science Education Programs.--Section 3164 of the
Department of Energy Science Education Enhancement Act (42
U.S.C. 7381a) (as amended by section 1102(a)) is amended by
adding at the end the following:
``(d) 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
the 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 the term in section 2
of the Energy Policy Act of 2005.
``(4) Science facility.--The term `science
facility' has the meaning given the term `single-
purpose research facility' in section 903 of the Energy
Policy Act of 2005.
``(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 Assistance Act of 1978 (25 U.S.C.
1801(a)).
``(b) Education Partnership.--The Secretary shall require
the director of each National Laboratory, and may require the
head of any science facility, to increase the participation of
historically Black colleges or universities, Hispanic-serving
institutions, or tribal colleges in any activity that increases
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 described in subsection (b)
includes--
``(1) collaborative research;
``(2) equipment transfer;
``(3) training activities carried out at a National
Laboratory or science facility; and
``(4) mentoring activities carried out at a
National Laboratory or science facility.
``(d) Report.--Not later than 2 years after the date of
enactment of this subsection, the Secretary shall submit to
Congress a report describing the activities carried out under
this section.''.
SEC. 1106. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATIONAL
CENTER.
(a) Establishment.--The Secretary shall support the
establishment of a National Power Plant Operations Technology
and Education Center (referred to in this section as the
``Center''), to address the need for training and educating
certified operators and technicians for the electric power
industry.
(b) Location of Center.--The Secretary shall support the
establishment of the Center at an institution of higher
education that has--
(1) expertise in providing degree programs in
electric power generation, transmission, and
distribution technologies;
(2) expertise in providing onsite and Internet-
based training; and
(3) demonstrated responsiveness to workforce and
training requirements in the electric power industry.
(c) Training and Continuing Education.--
(1) In general.--The Center shall provide training
and continuing education in electric power generation,
transmission, and distribution technologies and
operations.
(2) Location.--The Center shall carry out training
and education activities under paragraph (1)--
(A) at the Center; and
(B) through Internet-based information
technologies that allow for learning at remote
sites.
TITLE XII--ELECTRICITY
SEC. 1201. SHORT TITLE.
This title may be cited as the ``Electricity Modernization
Act of 2005''.
Subtitle A--Reliability Standards
SEC. 1211. ELECTRIC RELIABILITY STANDARDS.
(a) In General.--Part II of the Federal Power Act (16 U.S.C
824 et seq.) is amended by adding at the end the following:
``SEC. 215. ELECTRIC RELIABILITY.
``(a) Definitions.--For 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 facilities,
including cybersecurity protection, and the design of
planned additions or modifications to such facilities
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 facilities
or to construct new transmission capacity or generation
capacity.
``(4) The term `reliable operation' means operating
the elements 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, including a
cybersecurity incident, or unanticipated failure of
system elements.
``(5) The term `Interconnection' means a geographic
area in which the operation of bulk-power system
components is synchronized such that the failure of 1
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 facilities
within their control.
``(6) The term `transmission organization' means a
Regional Transmission Organization, Independent System
Operator, independent transmission provider, 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).
``(8) The term `cybersecurity incident' means a
malicious act or suspicious event that disrupts, or was
an attempt to disrupt, the operation of those
programmable electronic devices and communication
networks including hardware, software and data that are
essential to the reliable operation of the bulk power
system.
``(b) Jurisdiction and Applicability.--(1) 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 but not limited to 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.
``(2) 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) Certification.--Following the issuance of a
Commission rule under subsection (b)(2), any person may submit
an application to the Commission for certification as the
Electric Reliability Organization. The Commission may certify 1
such ERO if the Commission determines that such ERO--
``(1) has the ability to develop and enforce,
subject to subsection (e)(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) Reliability Standards.--(1) The Electric Reliability
Organization 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 Electric Reliability
Organization 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 Electric Reliability Organization 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 Electric
Reliability Organization 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 Electric Reliability Organization 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)(2) 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) Enforcement.--(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 issue 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--
``(i) an independent board;
``(ii) a balanced stakeholder board; or
``(iii) 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) Changes in Electric Reliability Organization Rules.--
The Electric Reliability Organization 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) Reliability Reports.--The ERO shall conduct periodic
assessments of the reliability and adequacy of the bulk-power
system in North America.
``(h) Coordination With Canada and Mexico.--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) Savings Provisions.--(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, except that the State of New York may
establish rules that result in greater reliability within that
State, as long as such action does not result in lesser
reliability outside the State than that provided by the
reliability standards.
``(4) Within 90 days of the application of the Electric
Reliability Organization 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 and
the State taking action, may stay the effectiveness of any
State action, pending the Commission's issuance of a final
order.
``(j) Regional Advisory Bodies.--The Commission shall
establish a regional advisory body on the petition of at least
\2/3\ of the States within a region that have more than \1/2\
of their electric load served within the region. A regional
advisory body shall be composed of 1 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 Electric Reliability
Organization, 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) Alaska and Hawaii.--The provisions of this section do
not apply to Alaska or Hawaii.''.
(b) Status of ERO.--The Electric Reliability Organization
certified by the Federal Energy Regulatory Commission under
section 215(c) of the Federal Power Act and any regional entity
delegated enforcement authority pursuant to section 215(e)(4)
of that Act are not departments, agencies, or instrumentalities
of the United States Government.
(c) Access Approvals by Federal Agencies.--Federal agencies
responsible for approving access to electric transmission or
distribution facilities located on lands within the United
States shall, in accordance with applicable law, expedite any
Federal agency approvals that are necessary to allow the owners
or operators of such facilities to comply with any reliability
standard, approved by the Commission under section 215 of the
Federal Power Act, that pertains to vegetation management,
electric service restoration, or resolution of situations that
imminently endanger the reliability or safety of the
facilities.
Subtitle B--Transmission Infrastructure Modernization
SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
(a) In General.--Part II of the Federal Power Act (16
U.S.C. 824 et seq.) is amended by adding at the end the
following:
``SEC. 216. SITING OF INTERSTATE ELECTRIC TRANSMISSION FACILITIES.
``(a) Designation of National Interest Electric
Transmission Corridors.--(1) Not later than 1 year after the
date of enactment of this section and every 3 years thereafter,
the Secretary of Energy (referred to in this section as the
`Secretary'), in consultation with affected States, shall
conduct a study of electric transmission congestion.
``(2) After considering alternatives and recommendations
from interested parties (including an opportunity for comment
from affected States), the Secretary shall issue a report,
based on the study, which may designate any geographic area
experiencing electric energy transmission capacity constraints
or congestion that adversely affects consumers as a national
interest electric transmission corridor.
``(3) The Secretary shall conduct the study and issue the
report in consultation with any appropriate regional entity
referred to in section 215.
``(4) In determining whether to designate a national
interest electric transmission corridor under paragraph (2),
the Secretary may consider whether--
``(A) the economic vitality and development of the
corridor, or the end markets served by the corridor,
may be constrained by lack of adequate or reasonably
priced electricity;
``(B)(i) economic growth in the corridor, or the
end markets served by the corridor, may be jeopardized
by reliance on limited sources of energy; and
``(ii) a diversification of supply is warranted;
``(C) the energy independence of the United States
would be served by the designation;
``(D) the designation would be in the interest of
national energy policy; and
``(E) the designation would enhance national
defense and homeland security.
``(b) Construction Permit.--Except as provided in
subsection (i), the Commission may, after notice and an
opportunity for hearing, issue 1 or more permits for the
construction or modification of electric transmission
facilities in a national interest electric transmission
corridor designated by the Secretary under subsection (a) if
the Commission finds that--
``(1)(A) a State in which the transmission
facilities are to be constructed or modified does not
have authority to--
``(i) approve the siting of the facilities;
or
``(ii) consider the interstate benefits
expected to be achieved by the proposed
construction or modification of transmission
facilities in the State;
``(B) the applicant for a permit is a transmitting
utility under this Act but does not qualify to apply
for a permit or siting approval for the proposed
project in a State because the applicant does not serve
end-use customers in the State; or
``(C) a State commission or other entity that has
authority to approve the siting of the facilities has--
``(i) withheld approval for more than 1
year after the filing of an application seeking
approval pursuant to applicable law or 1 year
after the designation of the relevant national
interest electric transmission corridor,
whichever is later; or
``(ii) conditioned its approval in such a
manner that the proposed construction or
modification will not significantly reduce
transmission congestion in interstate commerce
or is not economically feasible;
``(2) the facilities to be authorized by the permit
will be used for the transmission of electric energy in
interstate commerce;
``(3) the proposed construction or modification is
consistent with the public interest;
``(4) the proposed construction or modification
will significantly reduce transmission congestion in
interstate commerce and protects or benefits consumers;
``(5) the proposed construction or modification is
consistent with sound national energy policy and will
enhance energy independence; and
``(6) the proposed modification will maximize, to
the extent reasonable and economical, the transmission
capabilities of existing towers or structures.
``(c) Permit Applications.--(1) Permit applications under
subsection (b) shall be made in writing to the Commission.
``(2) The Commission shall issue rules specifying--
``(A) the form of the application;
``(B) the information to be contained in the
application; and
``(C) the manner of service of notice of the permit
application on interested persons.
``(d) Comments.--In any proceeding before the Commission
under subsection (b), the Commission shall afford each State in
which a transmission facility covered by the permit is or will
be located, each affected Federal agency and Indian tribe,
private property owners, and other interested persons, a
reasonable opportunity to present their views and
recommendations with respect to the need for and impact of a
facility covered by the permit.
``(e) Rights-of-Way.--(1) In the case of a permit under
subsection (b) for electric transmission facilities to be
located on property other than property owned by the United
States or a State, if the permit holder cannot acquire by
contract, or is unable to agree with the owner of the property
to the compensation to be paid for, the necessary right-of-way
to construct or modify the transmission facilities, the permit
holder may acquire the right-of-way by the exercise of the
right of eminent domain in the district court of the United
States for the district in which the property concerned is
located, or in the appropriate court of the State in which the
property is located.
``(2) Any right-of-way acquired under paragraph (1) shall
be used exclusively for the construction or modification of
electric transmission facilities within a reasonable period of
time after the acquisition.
``(3) The practice and procedure in any action or
proceeding under this subsection in the district court of the
United States shall conform as nearly as practicable to the
practice and procedure in a similar action or proceeding in the
courts of the State in which the property is located.
``(4) Nothing in this subsection shall be construed to
authorize the use of eminent domain to acquire a right-of-way
for any purpose other than the construction, modification,
operation, or maintenance of electric transmission facilities
and related facilities. The right-of-way cannot be used for any
other purpose, and the right-of-way shall terminate upon the
termination of the use for which the right-of-way was acquired.
``(f) Compensation.--(1) Any right-of-way acquired pursuant
to subsection (e) shall be considered a taking of private
property for which just compensation is due.
``(2) Just compensation shall be an amount equal to the
fair market value (including applicable severance damages) of
the property taken on the date of the exercise of eminent
domain authority.
``(g) State Law.--Nothing in this section precludes any
person from constructing or modifying any transmission facility
in accordance with State law.
``(h) Coordination of Federal Authorizations for
Transmission Facilities.--(1) In this subsection:
``(A) The term `Federal authorization' means any
authorization required under Federal law in order to
site a transmission facility.
``(B) The term `Federal authorization' includes
such permits, special use authorizations,
certifications, opinions, or other approvals as may be
required under Federal law in order to site a
transmission facility.
``(2) The Department of Energy shall act as the lead agency
for purposes of coordinating all applicable Federal
authorizations and related environmental reviews of the
facility.
``(3) To the maximum extent practicable under applicable
Federal law, the Secretary shall coordinate the Federal
authorization and review process under this subsection with any
Indian tribes, multistate entities, and State agencies that are
responsible for conducting any separate permitting and
environmental reviews of the facility, to ensure timely and
efficient review and permit decisions.
``(4)(A) As head of the lead agency, the Secretary, in
consultation with agencies responsible for Federal
authorizations and, as appropriate, with Indian tribes,
multistate entities, and State agencies that are willing to
coordinate their own separate permitting and environmental
reviews with the Federal authorization and environmental
reviews, shall establish prompt and binding intermediate
milestones and ultimate deadlines for the review of, and
Federal authorization decisions relating to, the proposed
facility.
``(B) The Secretary shall ensure that, once an application
has been submitted with such data as the Secretary considers
necessary, all permit decisions and related environmental
reviews under all applicable Federal laws shall be completed--
``(i) within 1 year; or
``(ii) if a requirement of another provision of
Federal law does not permit compliance with clause (i),
as soon thereafter as is practicable.
``(C) The Secretary shall provide an expeditious pre-
application mechanism for prospective applicants to confer with
the agencies involved to have each such agency determine and
communicate to the prospective applicant not later than 60 days
after the prospective applicant submits a request for such
information concerning--
``(i) the likelihood of approval for a potential
facility; and
``(ii) key issues of concern to the agencies and
public.
``(5)(A) As lead agency head, the Secretary, in
consultation with the affected agencies, shall prepare a single
environmental review document, which shall be used as the basis
for all decisions on the proposed project under Federal law.
``(B) The Secretary and the heads of other agencies shall
streamline the review and permitting of transmission within
corridors designated under section 503 of the Federal Land
Policy and Management Act (43 U.S.C. 1763) by fully taking into
account prior analyses and decisions relating to the corridors.
``(C) The document shall include consideration by the
relevant agencies of any applicable criteria or other matters
as required under applicable law.
``(6)(A) If any agency has denied a Federal authorization
required for a transmission facility, or has failed to act by
the deadline established by the Secretary pursuant to this
section for deciding whether to issue the authorization, the
applicant or any State in which the facility would be located
may file an appeal with the President, who shall, in
consultation with the affected agency, review the denial or
failure to take action on the pending application.
``(B) Based on the overall record and in consultation with
the affected agency, the President may--
``(i) issue the necessary authorization with any
appropriate conditions; or
``(ii) deny the application.
``(C) The President shall issue a decision not later than
90 days after the date of the filing of the appeal.
``(D) In making a decision under this paragraph, the
President shall comply with applicable requirements of Federal
law, including any requirements of--
``(i) the National Forest Management Act of 1976
(16 U.S.C. 472a et seq.);
``(ii) the Endangered Species Act of 1973 (16
U.S.C. 1531 et seq.);
``(iii) the Federal Water Pollution Control Act (33
U.S.C. 1251 et seq.);
``(iv) the National Environmental Policy Act of
1969 (42 U.S.C. 4321 et seq.); and
``(v) the Federal Land Policy and Management Act of
1976 (43 U.S.C. 1701 et seq.).
``(7)(A) Not later than 18 months after the date of
enactment of this section, the Secretary shall issue any
regulations necessary to implement this subsection.
``(B)(i) Not later than 1 year after the date of enactment
of this section, the Secretary and the heads of all Federal
agencies with authority to issue Federal authorizations shall
enter into a memorandum of understanding to ensure the timely
and coordinated review and permitting of electricity
transmission facilities.
``(ii) Interested Indian tribes, multistate entities, and
State agencies may enter the memorandum of understanding.
``(C) The head of each Federal agency with authority to
issue a Federal authorization shall designate a senior official
responsible for, and dedicate sufficient other staff and
resources to ensure, full implementation of the regulations and
memorandum required under this paragraph.
``(8)(A) Each Federal land use authorization for an
electricity transmission facility shall be issued--
``(i) for a duration, as determined by the
Secretary, commensurate with the anticipated use of the
facility; and
``(ii) with appropriate authority to manage the
right-of-way for reliability and environmental
protection.
``(B) On the expiration of the authorization (including an
authorization issued before the date of enactment of this
section), the authorization shall be reviewed for renewal
taking fully into account reliance on such electricity
infrastructure, recognizing the importance of the authorization
for public health, safety, and economic welfare and as a
legitimate use of Federal land.
``(9) In exercising the responsibilities under this
section, the Secretary shall consult regularly with--
``(A) the Federal Energy Regulatory Commission;
``(B) electric reliability organizations (including
related regional entities) approved by the Commission;
and
``(C) Transmission Organizations approved by the
Commission.
``(i) Interstate Compacts.--(1) The consent of Congress is
given for 3 or more contiguous States to enter into an
interstate compact, subject to approval by Congress,
establishing regional transmission siting agencies to--
``(A) facilitate siting of future electric energy
transmission facilities within those States; and
``(B) carry out the electric energy transmission
siting responsibilities of those States.
``(2) The Secretary may provide technical assistance to
regional transmission siting agencies established under this
subsection.
``(3) The regional transmission siting agencies shall have
the authority to review, certify, and permit siting of
transmission facilities, including facilities in national
interest electric transmission corridors (other than facilities
on property owned by the United States).
``(4) The Commission shall have no authority to issue a
permit for the construction or modification of an electric
transmission facility within a State that is a party to a
compact, unless the members of the compact are in disagreement
and the Secretary makes, after notice and an opportunity for a
hearing, the finding described in subsection (b)(1)(C).
``(j) Relationship to Other Laws.--(1) Except as
specifically provided, nothing in this section affects any
requirement of an environmental law of the United States,
including the National Environmental Policy Act of 1969 (42
U.S.C. 4321 et seq.).
``(2) Subsection (h)(6) shall not apply to any unit of the
National Park System, the National Wildlife Refuge System, the
National Wild and Scenic Rivers System, the National Trails
System, the National Wilderness Preservation System, or a
National Monument.
``(k) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).''.
(b) Reports to Congress on Corridors and Rights of Way on
Federal Lands.--Not later than 90 days after the date of
enactment of this Act, the Secretary of the Interior, the
Secretary, the Secretary of Agriculture, and the Chairman of
the Council on Environmental Quality shall submit to Congress a
joint report identifying--
(1)(A) all existing designated transmission and
distribution corridors on Federal land and the status
of work related to proposed transmission and
distribution corridor designations under title V of the
Federal Land Policy and Management Act of 1976 (43
U.S.C. 1761 et seq.);
(B) the schedule for completing the work;
(C) any impediments to completing the work; and
(D) steps that Congress could take to expedite the
process;
(2)(A) the number of pending applications to locate
transmission facilities on Federal land;
(B) key information relating to each such facility;
(C) how long each application has been pending;
(D) the schedule for issuing a timely decision as
to each facility; and
(E) progress in incorporating existing and new such
rights-of-way into relevant land use and resource
management plans or the equivalent of those plans; and
(3)(A) the number of existing transmission and
distribution rights-of-way on Federal land that will
come up for renewal within the following 5-, 10-, and
15-year periods; and
(B) a description of how the Secretaries plan to
manage the renewals.
SEC. 1222. THIRD-PARTY FINANCE.
(a) Existing Facilities.--The Secretary, acting through the
Administrator of the Western Area Power Administration
(hereinafter in this section referred to as ``WAPA''), or
through the Administrator of the Southwestern Power
Administration (hereinafter in this section referred to as
``SWPA''), or both, may design, develop, construct, operate,
maintain, or own, or participate with other entities in
designing, developing, constructing, operating, maintaining, or
owning, an electric power transmission facility and related
facilities (``Project'') needed to upgrade existing
transmission facilities owned by SWPA or WAPA if the Secretary,
in consultation with the applicable Administrator, determines
that the proposed Project--
(1)(A) is located in a national interest electric
transmission corridor designated under section 216(a)
of the Federal Power Act and will reduce congestion of
electric transmission in interstate commerce; or
(B) is necessary to accommodate an actual or
projected increase in demand for electric transmission
capacity;
(2) is consistent with--
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by
the appropriate Transmission Organization (as
defined in the Federal Power Act), if any, or
approved regional reliability organization; and
(B) efficient and reliable operation of the
transmission grid; and
(3) would be operated in conformance with prudent
utility practice.
(b) New Facilities.--The Secretary, acting through WAPA or
SWPA, or both, may design, develop, construct, operate,
maintain, or own, or participate with other entities in
designing, developing, constructing, operating, maintaining, or
owning, a new electric power transmission facility and related
facilities (``Project'') located within any State in which WAPA
or SWPA operates if the Secretary, in consultation with the
applicable Administrator, determines that the proposed
Project--
(1)(A) is located in an area designated under
section 216(a) of the Federal Power Act and will reduce
congestion of electric transmission in interstate
commerce; or
(B) is necessary to accommodate an actual or
projected increase in demand for electric transmission
capacity;
(2) is consistent with--
(A) transmission needs identified, in a
transmission expansion plan or otherwise, by
the appropriate Transmission Organization (as
defined in the Federal Power Act) if any, or
approved regional reliability organization; and
(B) efficient and reliable operation of the
transmission grid;
(3) will be operated in conformance with prudent
utility practice;
(4) will be operated by, or in conformance with the
rules of, the appropriate (A) Transmission
Organization, if any, or (B) if such an organization
does not exist, regional reliability organization; and
(5) will not duplicate the functions of existing
transmission facilities or proposed facilities which
are the subject of ongoing or approved siting and
related permitting proceedings.
(c) Other Funds.--
(1) In general.--In carrying out a Project under
subsection (a) or (b), the Secretary may accept and use
funds contributed by another entity for the purpose of
carrying out the Project.
(2) Availability.--The contributed funds shall be
available for expenditure for the purpose of carrying
out the Project--
(A) without fiscal year limitation; and
(B) as if the funds had been appropriated
specifically for that Project.
(3) Allocation of costs.--In carrying out a Project
under subsection (a) or (b), any costs of the Project
not paid for by contributions from another entity shall
be collected through rates charged to customers using
the new transmission capability provided by the Project
and allocated equitably among these project
beneficiaries using the new transmission capability.
(d) Relationship to Other Laws.--Nothing in this section
affects any requirement of--
(1) any Federal environmental law, including the
National Environmental Policy Act of 1969 (42 U.S.C.
4321 et seq.);
(2) any Federal or State law relating to the siting
of energy facilities; or
(3) any existing authorizing statutes.
(e) Savings Clause.--Nothing in this section shall
constrain or restrict an Administrator in the utilization of
other authority delegated to the Administrator of WAPA or SWPA.
(f) Secretarial Determinations.--Any determination made
pursuant to subsections (a) or (b) shall be based on findings
by the Secretary using the best available data.
(g) Maximum Funding Amount.--The Secretary shall not accept
and use more than $100,000,000 under subsection (c)(1) for the
period encompassing fiscal years 2006 through 2015.
SEC. 1223. ADVANCED TRANSMISSION TECHNOLOGIES.
(a) Definition of Advanced Transmission Technology.--In
this section, the term ``advanced transmission technology''
means a technology that increases the capacity, efficiency, or
reliability of an existing or new transmission facility,
including--
(1) high-temperature lines (including
superconducting cables);
(2) underground cables;
(3) advanced conductor technology (including
advanced composite conductors, high-temperature low-sag
conductors, and fiber optic temperature sensing
conductors);
(4) high-capacity ceramic electric wire,
connectors, and insulators;
(5) optimized transmission line configurations
(including multiple phased transmission lines);
(6) modular equipment;
(7) wireless power transmission;
(8) ultra-high voltage lines;
(9) high-voltage DC technology;
(10) flexible AC transmission systems;
(11) energy storage devices (including pumped
hydro, compressed air, superconducting magnetic energy
storage, flywheels, and batteries);
(12) controllable load;
(13) distributed generation (including PV, fuel
cells, and microturbines);
(14) enhanced power device monitoring;
(15) direct system state sensors;
(16) fiber optic technologies;
(17) power electronics and related software
(including real time monitoring and analytical
software);
(18) mobile transformers and mobile substations;
and
(19) any other technologies the Commission
considers appropriate.
(b) Authority.--In carrying out the Federal Power Act (16
U.S.C. 791a et seq.) and the Public Utility Regulatory Policies
Act of 1978 (16 U.S.C. 2601 et seq.), the Commission shall
encourage, as appropriate, the deployment of advanced
transmission technologies.
SEC. 1224. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.
(a) Program.--The Secretary is authorized to establish an
Advanced Power System Technology Incentive Program to support
the deployment of certain advanced power system technologies
and to improve and protect certain critical governmental,
industrial, and commercial processes. Funds provided under this
section shall be used by the Secretary to make incentive
payments to eligible owners or operators of advanced power
system technologies to increase power generation through
enhanced operational, economic, and environmental performance.
Payments under this section may only be made upon receipt by
the Secretary of an incentive payment application establishing
an applicant as either--
(1) a qualifying advanced power system technology
facility; or
(2) a qualifying security and assured power
facility.
(b) Incentives.--Subject to availability of funds, a
payment of 1.8 cents per kilowatt-hour shall be paid to the
owner or operator of a qualifying advanced power system
technology facility under this section for electricity
generated at such facility. An additional 0.7 cents per
kilowatt-hour shall be paid to the owner or operator of a
qualifying security and assured power facility for electricity
generated at such facility. Any facility qualifying under this
section shall be eligible for an incentive payment for up to,
but not more than, the first 10,000,000 kilowatt-hours produced
in any fiscal year.
(c) Eligibility.--For purposes of this section:
(1) Qualifying advanced power system technology
facility.--The term ``qualifying advanced power system
technology facility'' means a facility using an
advanced fuel cell, turbine, or hybrid power system or
power storage system to generate or store electric
energy.
(2) Qualifying security and assured power
facility.--The term ``qualifying security and assured
power facility'' means a qualifying advanced power
system technology facility determined by the Secretary,
in consultation with the Secretary of Homeland
Security, to be in critical need of secure, reliable,
rapidly available, high-quality power for critical
governmental, industrial, or commercial applications.
(d) Authorization.--There are authorized to be appropriated
to the Secretary for the purposes of this section, $10,000,000
for each of the fiscal years 2006 through 2012.
Subtitle C--Transmission Operation Improvements
SEC. 1231. OPEN NONDISCRIMINATORY ACCESS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by inserting after section 211 (16 U.S.C. 824j) the
following:
``SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES.
``(a) Definition of Unregulated Transmitting Utility.--In
this section, the term `unregulated transmitting utility' means
an entity that--
``(1) owns or operates facilities used for the
transmission of electric energy in interstate commerce;
and
``(2) is an entity described in section 201(f).
``(b) Transmission Operation Services.--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 the
unregulated transmitting utility provides transmission
services to itself and that are not unduly
discriminatory or preferential.
``(c) Exemption.--The Commission shall exempt from any rule
or order under this section any unregulated transmitting
utility that--
``(1) sells not more than 4,000,000 megawatt hours
of electricity per year;
``(2) does not own or operate any transmission
facilities that are necessary for operating an
interconnected transmission system (or any portion of
the system); or
``(3) meets other criteria the Commission
determines to be in the public interest.
``(d) Local Distribution Facilities.--The requirements of
subsection (b) shall not apply to facilities used in local
distribution.
``(e) Exemption Termination.--If the Commission, after an
evidentiary hearing held on a complaint and after giving
consideration to reliability standards established under
section 215, finds on the basis of a preponderance of the
evidence that any exemption granted pursuant to subsection (c)
unreasonably impairs the continued reliability of an
interconnected transmission system, the Commission shall revoke
the exemption granted to the transmitting utility.
``(f) Application to Unregulated Transmitting Utilities.--
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.
``(g) Remand.--In exercising authority under subsection
(b)(1), the Commission may remand transmission rates to an
unregulated transmitting utility for review and revision if
necessary to meet the requirements of subsection (b).
``(h) Other Requests.--The provision of transmission
services under subsection (b) does not preclude a request for
transmission services under section 211.
``(i) Limitation.--The Commission may not require a State
or municipality to take action under this section that would
violate a private activity bond rule for purposes of section
141 of the Internal Revenue Code of 1986.
``(j) Transfer of Control of Transmitting Facilities.--
Nothing in this section authorizes the Commission to require an
unregulated transmitting utility to transfer control or
operational control of its transmitting facilities to a
Transmission Organization that is designated to provide
nondiscriminatory transmission access.''.
SEC. 1232. FEDERAL UTILITY PARTICIPATION IN TRANSMISSION ORGANIZATIONS.
(a) Definitions.--In this section:
(1) Appropriate federal regulatory authority.--The
term ``appropriate Federal regulatory authority''
means--
(A) in the case of a Federal power
marketing agency, the Secretary, 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 the
Federal power marketing agency; and
(B) in the case of the Tennessee Valley
Authority, the Board of Directors of the
Tennessee Valley Authority.
(2) Federal power marketing agency.--The term
``Federal power marketing agency'' has the meaning
given the term in section 3 of the Federal Power Act
(16 U.S.C. 796).
(3) Federal utility.--The term ``Federal utility''
means--
(A) a Federal power marketing agency; or
(B) the Tennessee Valley Authority.
(4) Transmission organization.--The term
``Transmission Organization'' has the meaning given the
term in section 3 of the Federal Power Act (16 U.S.C.
796).
(5) Transmission system.--The term ``transmission
system'' means an electric transmission facility owned,
leased, or contracted for by the United States and
operated by a Federal utility.
(b) Transfer.--The appropriate Federal regulatory authority
may enter into a contract, agreement, or other arrangement
transferring control and use of all or part of the transmission
system of a Federal utility to a Transmission Organization.
(c) Contents.--The contract, agreement, or arrangement
shall include--
(1) performance standards for operation and use of
the transmission system that the head of the Federal
utility determines are necessary or appropriate,
including standards that ensure--
(A) recovery of all of the costs and
expenses of the Federal utility related to the
transmission facilities that are the subject of
the contract, agreement, or other arrangement;
(B) consistency with existing contracts and
third-party financing arrangements; and
(C) consistency with the statutory
authorities, obligations, and limitations of
the Federal utility;
(2) provisions for monitoring and oversight by the
Federal utility of the Transmission Organization's
terms and conditions of the contract, agreement, or
other arrangement, including a provision for the
resolution of disputes through arbitration or other
means with the Transmission Organization or with other
participants, notwithstanding the obligations and
limitations of any other law regarding arbitration; and
(3) a provision that allows the Federal utility to
withdraw from the Transmission Organization and
terminate the contract, agreement, or other arrangement
in accordance with its terms.
(d) Commission.--Neither this section, actions taken
pursuant to this section, nor any other transaction of a
Federal utility participating in a Transmission Organization
shall confer on the Commission jurisdiction or authority over--
(1) the electric generation assets, electric
capacity, or energy of the Federal utility that the
Federal utility is authorized by law to market; or
(2) the power sales activities of the Federal
utility.
(e) Existing Statutory and Other Obligations.--
(1) System operation requirements.--No statutory
provision requiring or authorizing a Federal utility to
transmit electric power or to construct, operate, or
maintain the transmission system of the Federal utility
prohibits a transfer of control and use of the
transmission system pursuant to, and subject to, the
requirements of this section.
(2) Other obligations.--This subsection does not--
(A) suspend, or exempt any Federal utility
from, any provision of Federal law in effect on
the date of enactment of this Act, including
any requirement or direction relating to the
use of the transmission system of the Federal
utility, environmental protection, fish and
wildlife protection, flood control, navigation,
water delivery, or recreation; or
(B) authorize abrogation of any contract or
treaty obligation.
(3) Conforming amendment.--Section 311 of the
Energy and Water Development Appropriations Act, 2001
(16 U.S.C. 824n) is repealed.
SEC. 1233. NATIVE LOAD SERVICE OBLIGATION.
(a) In General.--Part II of the Federal Power Act (16
U.S.C. 824 et seq.) is amended by adding at the end the
following:
``SEC. 217. NATIVE LOAD SERVICE OBLIGATION.
``(a) Definitions.--In this section:
``(1) The term `distribution utility' means an
electric utility that has a service obligation to end-
users or to a State utility or electric cooperative
that, directly or indirectly, through 1 or more
additional State utilities or electric cooperatives,
provides electric service to end-users.
``(2) The term `load-serving entity' means a
distribution utility or an electric utility that has a
service obligation.
``(3) The term `service obligation' means a
requirement applicable to, or the exercise of authority
granted to, an electric utility under Federal, State,
or local law or under long-term contracts to provide
electric service to end-users or to a distribution
utility.
``(4) The term `State utility' means a State or any
political subdivision of a State, or any agency,
authority, or instrumentality of any 1 or more of the
foregoing, or a corporation that is wholly owned,
directly or indirectly, by any 1 or more of the
foregoing, competent to carry on the business of
developing, transmitting, utilizing, or distributing
power.
``(b) Meeting Service Obligations.--(1) Paragraph (2)
applies to 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 1 or more wholesale contracts to purchase
electric energy, for the purpose of meeting a service
obligation; and
``(B) by reason of ownership of transmission
facilities, or 1 or more contracts or service
agreements for firm transmission service, holds firm
transmission rights for delivery of the output of the
generation facilities or the purchased energy to meet
the service obligation.
``(2) Any load-serving entity described in paragraph (1) is
entitled to use the firm transmission rights, or, equivalent
tradable or financial transmission rights, in order to deliver
the output or purchased energy, or the output of other
generating facilities or purchased energy to the extent
deliverable using the rights, to the extent required to meet
the service obligation of the load-serving entity.
``(3)(A) To the extent that all or a portion of the service
obligation covered by the firm transmission rights or
equivalent tradable or financial transmission rights is
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission
rights or equivalent tradable or financial transmission rights
associated with the transferred service obligation.
``(B) Subsequent transfers to another load-serving entity,
or back to the original load-serving entity, shall be entitled
to the same rights.
``(4) The Commission shall exercise the authority of the
Commission 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 the
service obligations of the load-serving entities, and enables
load-serving entities to secure firm transmission rights (or
equivalent tradable or financial rights) on a long term basis
for long term power supply arrangements made, or planned, to
meet such needs.
``(c) Allocation of Transmission Rights.--Nothing in
subsections (b)(1), (b)(2) and (b)(3) of this section shall
affect any existing or future methodology employed by a
Transmission Organization for allocating or auctioning
transmission rights if such Transmission Organization was
authorized by the Commission to allocate or auction financial
transmission rights on its system as of January 1, 2005, and
the Commission determines that any future allocation or auction
is just, reasonable and not unduly discriminatory or
preferential, provided, however, that if such a Transmission
Organization never allocated financial transmission rights on
its system that pertained to a period before January 1, 2005,
with respect to any application by such Transmission
Organization that would change its methodology the Commission
shall exercise its authority in a manner consistent with the
Act and that takes into account the policies expressed in
subsections (b)(1), (b)(2) and (b)(3) as applied to firm
transmission rights held by a load-serving entity as of January
1, 2005, to the extent the associated generation ownership or
power purchase arrangements remain in effect.
``(d) Certain Transmission Rights.--The Commission may
exercise authority under this Act to make transmission rights
not used to meet an obligation covered by subsection (b)
available to other entities in a manner determined by the
Commission to be just, reasonable, and not unduly
discriminatory or preferential.
``(e) Obligation To Build.--Nothing in this Act relieves a
load-serving entity from any obligation under State or local
law to build transmission or distribution facilities adequate
to meet the service obligations of the load-serving entity.
``(f) Contracts.--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. If an ISO in the Western
Interconnection had allocated financial transmission rights
prior to the date of enactment of this section but had not done
so with respect to one or more load-serving entities' firm
transmission rights held under contracts to which the preceding
sentence applies (or held by reason of ownership or future
ownership of transmission facilities), such load-serving
entities may not be required, without their consent, to convert
such firm transmission rights to tradable or financial rights,
except where the load-serving entity has voluntarily joined the
ISO as a participating transmission owner (or its successor) in
accordance with the ISO tariff.
``(g) Water Pumping Facilities.--The Commission shall
ensure that any entity described in section 201(f) that owns
transmission facilities used predominately to support its own
water pumping facilities shall have, with respect to the
facilities, protections for transmission service comparable to
those provided to load-serving entities pursuant to this
section.
``(h) ERCOT.--This section shall not apply within the area
referred to in section 212(k)(2)(A).
``(i) Jurisdiction.--This section does not authorize the
Commission to take any action not otherwise within the
jurisdiction of the Commission.
``(j) TVA Area.--(1) Subject to paragraphs (2) and (3), for
purposes of subsection (b)(1)(B), a load-serving entity that is
located within the service area of the Tennessee Valley
Authority and that has a firm wholesale power supply contract
with the Tennessee Valley Authority shall be considered to hold
firm transmission rights for the transmission of the power
provided.
``(2) Nothing in this subsection affects the requirements
of section 212(j).
``(3) The Commission shall not issue an order on the basis
of this subsection that is contrary to the purposes of section
212(j).
``(k) Effect of Exercising Rights.--An entity that to the
extent required to meet its service obligations exercises
rights described in subsection (b) shall not be considered by
such action as engaging in undue discrimination or preference
under this Act''.
(b) FERC Rulemaking on Long-Term Transmission Rights in
Organized Markets.--Within one year after the date of enactment
of this section and after notice and an opportunity for
comment, the Commission shall by rule or order, implement
section 217(b)(4) of the Federal Power Act in Transmission
Organizations, as defined by that Act with organized
electricity markets.
SEC. 1234. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.
(a) Study.--The Secretary, in coordination and consultation
with the States, shall conduct a study on--
(1) the procedures currently used by electric
utilities to perform economic dispatch;
(2) identifying possible revisions to those
procedures to improve the ability of nonutility
generation resources to offer their output for sale for
the purpose of inclusion in economic dispatch; and
(3) the potential benefits to residential,
commercial, and industrial electricity consumers
nationally and in each state if economic dispatch
procedures were revised to improve the ability of
nonutility generation resources to offer their output
for inclusion in economic dispatch.
(b) Definition.--The term ``economic dispatch'' when used
in this section means the operation of generation facilities to
produce energy at the lowest cost to reliably serve consumers,
recognizing any operational limits of generation and
transmission facilities.
(c) Report to Congress and the States.--Not later than 90
days after the date of enactment of this Act, and on a yearly
basis following, the Secretary shall submit a report to
Congress and the States on the results of the study conducted
under subsection (a), including recommendations to Congress and
the States for any suggested legislative or regulatory changes.
SEC. 1235. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC
NORTHWEST.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 218. PROTECTION OF TRANSMISSION CONTRACTS IN THE PACIFIC
NORTHWEST.
``(a) Definition of Electric Utility or Person.--In this
section, the term `electric utility or person' means an
electric utility or person that--
``(1) as of the date of enactment of the Energy
Policy Act of 2005 holds firm transmission rights
pursuant to contract or by reason of ownership of
transmission facilities; and
``(2) is located--
``(A) in the Pacific Northwest, as that
region is defined in section 3 of the Pacific
Northwest Electric Power Planning and
Conservation Act (16 U.S.C. 839a); or
``(B) in that portion of a State included
in the geographic area proposed for a regional
transmission organization in Commission Docket
Number RT01-35 on the date on which that docket
was opened.
``(b) Protection of Transmission Contracts.--Nothing in
this Act confers on the Commission the authority to require an
electric utility or person to convert to tradable or financial
rights--
``(1) firm transmission rights described in
subsection (a); or
``(2) firm transmission rights obtained by
exercising contract or tariff rights associated with
the firm transmission rights described in subsection
(a).''.
SEC. 1236. SENSE OF CONGRESS REGARDING LOCATIONAL INSTALLED CAPACITY
MECHANISM.
(a) Findings.--Congress finds that--
(1) in regard to a proposal to develop and
implement a specific type of locational installed
capacity mechanism in New England pending before the
Federal Energy Regulatory Commission; and
(2) the Governors of the States have objected to
the proposed mechanism, arguing that the mechanism--
(A) would not provide adequate assurance
that necessary electric generation capacity or
reliability will be provided; and
(B) would impose a high cost on consumers
and have a significant negative economic
impact.
(b) Sense of Congress.--Congress--
(1) notes the concerns of the New England States to
the proposed mechanism; and
(2) declares that it is the sense of Congress that
the Federal Energy Regulatory Commission should
carefully consider the States' objections.
Subtitle D--Transmission Rate Reform
SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 219. TRANSMISSION INFRASTRUCTURE INVESTMENT.
``(a) Rulemaking Requirement.--Not later than 1 year after
the date of enactment of this section, the Commission shall
establish, by rule, incentive-based (including performance-
based) rate treatments for the transmission of electric energy
in interstate commerce by public utilities for the purpose of
benefitting consumers by ensuring reliability and reducing the
cost of delivered power by reducing transmission congestion.
``(b) Contents.--The rule shall--
``(1) promote reliable and economically efficient
transmission and generation of electricity by promoting
capital investment in the enlargement, improvement,
maintenance, and operation of all facilities for the
transmission of electric energy in interstate commerce,
regardless of the ownership of the facilities;
``(2) provide a return on equity that attracts new
investment in transmission facilities (including
related transmission technologies);
``(3) encourage deployment of transmission
technologies and other measures to increase the
capacity and efficiency of existing transmission
facilities and improve the operation of the facilities;
and
``(4) allow recovery of--
``(A) all prudently incurred costs
necessary to comply with mandatory reliability
standards issued pursuant to section 215; and
``(B) all prudently incurred costs related
to transmission infrastructure development
pursuant to section 216.
``(c) Incentives.--In the rule issued under this section,
the Commission shall, to the extent within its jurisdiction,
provide for incentives to each transmitting utility or electric
utility that joins a Transmission Organization. The Commission
shall ensure that any costs recoverable pursuant to this
subsection may be recovered by such utility through the
transmission rates charged by such utility or through the
transmission rates charged by the Transmission Organization
that provides transmission service to such utility.
``(d) Just and Reasonable Rates.--All rates approved under
the rules adopted pursuant to this section, including any
revisions to the rules, are subject to the requirements of
sections 205 and 206 that all rates, charges, terms, and
conditions be just and reasonable and not unduly discriminatory
or preferential.''.
SEC. 1242. FUNDING NEW INTERCONNECTION AND TRANSMISSION UPGRADES.
The Commission may approve a participant funding plan that
allocates costs related to transmission upgrades or new
generator interconnection, without regard to whether an
applicant is a member of a Commission-approved Transmission
Organization, if the plan results in rates that--
(1) are just and reasonable;
(2) are not unduly discriminatory or preferential;
and
(3) are otherwise consistent with sections 205 and
206 of the Federal Power Act (16 U.S.C. 824d, 824e).
Subtitle E--Amendments to PURPA
SEC. 1251. NET METERING AND ADDITIONAL STANDARDS.
(a) Adoption of Standards.--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.--Each electric utility shall
make available upon request net metering service to any
electric consumer that the electric utility serves. For
purposes of this paragraph, 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.
``(12) Fuel sources.--Each electric utility shall
develop a plan to minimize dependence on 1 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.
``(13) Fossil fuel generation efficiency.--Each
electric utility shall develop and implement a 10-year
plan to increase the efficiency of its fossil fuel
generation.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(b)) is amended by adding at the end the following:
``(3)(A) Not later than 2 years after the enactment of this
paragraph, each State regulatory authority (with respect to
each electric utility for which it has ratemaking authority)
and each nonregulated electric utility shall commence the
consideration referred to in section 111, or set a hearing date
for such consideration, with respect to each standard
established by paragraphs (11) through (13) of section 111(d).
``(B) Not later than 3 years after the date of the
enactment of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority), and each nonregulated electric utility,
shall complete the consideration, and shall make the
determination, referred to in section 111 with respect to each
standard established by paragraphs (11) through (13) of section
111(d).''.
(2) Failure to comply.--Section 112(c) of the
Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2622(c)) is amended by adding at the end the
following: ``In the case of each standard established
by paragraphs (11) through (13) of section 111(d), the
reference contained in this subsection to the date of
enactment of this Act shall be deemed to be a reference
to the date of enactment of such paragraphs (11)
through (13).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public
Utility Regulatory Policies Act of 1978 (16
U.S.C. 2622) is amended by adding at the end
the following:
``(d) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standards established by
paragraphs (11) through (13) of section 111(d) in the case of
any electric utility in a State if, before the enactment of
this subsection--
``(1) the State has implemented for such utility
the standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State
or relevant nonregulated electric utility has conducted
a proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
``(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.''.
(B) Cross reference.--Section 124 of such
Act (16 U.S.C. 2634) is amended by adding the
following at the end thereof: ``In the case of
each standard established by paragraphs (11)
through (13) of section 111(d), the reference
contained in this subsection to the date of
enactment of this Act shall be deemed to be a
reference to the date of enactment of such
paragraphs (11) through (13).''.
SEC. 1252. SMART METERING.
(a) In General.--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:
``(14) Time-based metering and communications.--(A)
Not later than 18 months after the date of enactment of
this paragraph, 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, if any, in the utility's 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, based on the utility's cost of generating
and/or purchasing such electricity at the
wholesale level for the benefit of the
consumer. 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/or purchasing electricity at the
wholesale level and when consumers may receive
additional discounts for reducing peak period
energy consumption;
``(iii) real-time pricing whereby
electricity prices are set for a specific time
period on an advanced or forward basis,
reflecting the utility's cost of generating
and/or purchasing electricity at the wholesale
level, and may change as often as hourly; and
``(iv) credits for consumers with large
loads who enter into pre-established peak load
reduction agreements that reduce a utility's
planned capacity obligations.
``(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 the 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 18 months after the date of 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 Utility Regulatory
Policies Act of 1978 (16 U.S.C. 2625) is amended as follows:
(1) By inserting in subsection (b) after the phrase
``the standard for time-of-day rates established by
section 111(d)(3)'' the following: ``and the standard
for time-based metering and communications established
by section 111(d)(14)''.
(2) By inserting in subsection (b) after the phrase
``are likely to exceed the metering'' the following:
``and communications''.
(3) By adding the at the end the following:
``(i) Time-Based Metering and Communications.--In making a
determination with respect to the standard established by
section 111(d)(14), the investigation requirement of section
111(d)(14)(F) shall be as follows: 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 Policies 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. 2642) 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 2005, providing
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, 2007.''.
(e) Demand Response and Regional Coordination.--
(1) In general.--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) Technical assistance.--The Secretary shall
provide technical assistance to States and regional
organizations formed by 2 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;
(C) developing plans and programs to use
demand response to respond to peak demand or
emergency needs; and
(D) identifying specific measures consumers
can take to participate in these demand
response programs.
(3) Report.--Not later than 1 year after the date
of enactment of the Energy Policy Act of 2005, 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;
(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; and
(F) regulatory barriers to improved
customer participation in demand response, peak
reduction and critical period pricing programs.
(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, the
deployment of such technology and devices that enable
electricity customers to participate in such pricing and demand
response systems shall be facilitated, and unnecessary barriers
to demand response participation in energy, capacity and
ancillary service markets shall be eliminated. It is further
the policy of the United States that the benefits of such
demand response that accrue to those not deploying such
technology and devices, but who are part of the same regional
electricity entity, shall be recognized.
(g) Time Limitations.--Section 112(b) of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended
by adding at the end the following:
``(4)(A) Not later than 1 year after the enactment
of this paragraph, each State regulatory authority
(with respect to each electric utility for which it has
ratemaking authority) and each nonregulated electric
utility shall commence the consideration referred to in
section 111, or set a hearing date for such
consideration, with respect to the standard established
by paragraph (14) of section 111(d).
``(B) Not later than 2 years after the date of the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority), and each
nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to the standard
established by paragraph (14) of section 111(d).''.
(h) Failure to Comply.--Section 112(c) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is
amended by adding at the end the following:
``In the case of the standard established by paragraph (14)
of section 111(d), the reference contained in this subsection
to the date of enactment of this Act shall be deemed to be a
reference to the date of enactment of such paragraph (14).''.
(i) Prior State Actions Regarding Smart Metering
Standards.--
(1) In general.--Section 112 of the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2622) is
amended by adding at the end the following:
``(e) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (14) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility
the standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State
or relevant nonregulated electric utility has conducted
a proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility
within the previous 3 years; or
``(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility within the previous 3
years.''.
(2) Cross reference.--Section 124 of such Act (16
U.S.C. 2634) is amended by adding the following at the
end thereof: ``In the case of the standard established
by paragraph (14) of section 111(d), the reference
contained in this subsection to the date of enactment
of this Act shall be deemed to be a reference to the
date of enactment of such paragraph (14).''.
SEC. 1253. 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 nondiscriminatory access to--
``(A)(i) independently administered,
auction-based day ahead and real time wholesale
markets for the sale of electric energy; and
(ii) wholesale markets for long-term sales of
capacity and electric energy; or
``(B)(i) transmission and interconnection
services that are provided by a Commission-
approved regional transmission entity and
administered pursuant to an open access
transmission tariff that affords
nondiscriminatory treatment to all customers;
and (ii) competitive wholesale markets that
provide a meaningful opportunity to sell
capacity, including long-term and short-term
sales, and electric energy, including long-
term, short-term and real-time sales, to buyers
other than the utility to which the qualifying
facility is interconnected. In determining
whether a meaningful opportunity to sell
exists, the Commission shall consider, among
other factors, evidence of transactions within
the relevant market; or
``(C) wholesale markets for the sale of
capacity and electric energy that are, at a
minimum, of comparable competitive quality as
markets described in subparagraphs (A) and (B).
``(2) Revised purchase and sale obligation for new
facilities.--(A) After the date of enactment of this
subsection, no electric utility shall be required
pursuant to this section to enter into a new contract
or obligation to purchase from or sell electric energy
to a facility that is not an existing qualifying
cogeneration facility unless the facility meets the
criteria for qualifying cogeneration facilities
established by the Commission pursuant to the
rulemaking required by subsection (n).
``(B) For the purposes of this paragraph, the term
`existing qualifying cogeneration facility' means a
facility that--
``(i) was a qualifying cogeneration
facility on the date of enactment of subsection
(m); or
``(ii) had filed with the Commission a
notice of self-certification, self-
recertification or an application for
Commission certification under 18 C.F.R.
292.207 prior to the date on which the
Commission issues the final rule required by
subsection (n).
``(3) Commission review.--Any electric utility may
file an application with the Commission for relief from
the mandatory purchase obligation pursuant to this
subsection on a service territory-wide basis. Such
application shall set forth the factual basis upon
which relief is requested and describe why the
conditions set forth in subparagraphs (A), (B) or (C)
of paragraph (1) of this subsection have been met.
After notice, including sufficient notice to
potentially affected qualifying cogeneration facilities
and qualifying small power production facilities, and
an opportunity for comment, the Commission shall make a
final determination within 90 days of such application
regarding whether the conditions set forth in
subparagraphs (A), (B) or (C) of paragraph (1) have
been met.
``(4) Reinstatement of obligation to purchase.--At
any time after the Commission makes a finding under
paragraph (3) relieving an electric utility of its
obligation to purchase electric energy, a qualifying
cogeneration facility, a qualifying small power
production facility, a State agency, or any other
affected person may apply to the Commission for an
order reinstating the electric utility's obligation to
purchase electric energy under this section. Such
application shall set forth the factual basis upon
which the application is based and describe why the
conditions set forth in subparagraphs (A), (B) or (C)
of paragraph (1) of this subsection are no longer met.
After notice, including sufficient notice to
potentially affected utilities, and opportunity for
comment, the Commission shall issue an order within 90
days of such application reinstating the electric
utility's obligation to purchase electric energy under
this section if the Commission finds that the
conditions set forth in subparagraphs (A), (B) or (C)
of paragraph (1) which relieved the obligation to
purchase, are no longer met.
``(5) 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 the Commission finds
that--
``(A) competing retail electric suppliers
are willing and able to sell and deliver
electric energy to the qualifying cogeneration
facility or qualifying small power production
facility; and
``(B) the electric utility is not required
by State law to sell electric energy in its
service territory.
``(6) 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 or pending approval before the appropriate
State regulatory authority or non-regulated electric
utility on the date of enactment of this subsection, to
purchase electric energy or capacity from or to sell
electric energy or capacity to a qualifying
cogeneration facility or qualifying small power
production facility under this Act (including the right
to recover costs of purchasing electric energy or
capacity).
``(7) Recovery of costs.--(A) The Commission shall
issue and enforce 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 recovers all
prudently incurred costs associated with the purchase.
``(B) 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.).
``(n) Rulemaking for New Qualifying Facilities.--(1)(A) Not
later than 180 days after the date of enactment of this
section, the Commission shall issue a rule revising the
criteria in 18 C.F.R. 292.205 for new qualifying cogeneration
facilities seeking to sell electric energy pursuant to section
210 of this Act to ensure--
``(i) that the thermal energy output of a new
qualifying cogeneration facility is used in a
productive and beneficial manner;
``(ii) the electrical, thermal, and chemical output
of the cogeneration facility is used fundamentally for
industrial, commercial, or institutional purposes and
is not intended fundamentally for sale to an electric
utility, taking into account technological, efficiency,
economic, and variable thermal energy requirements, as
well as State laws applicable to sales of electric
energy from a qualifying facility to its host facility;
and
``(iii) continuing progress in the development of
efficient electric energy generating technology.
``(B) The rule issued pursuant to paragraph (1)(A) of this
subsection shall be applicable only to facilities that seek to
sell electric energy pursuant to section 210 of this Act. For
all other purposes, except as specifically provided in
subsection (m)(2)(A), qualifying facility status shall be
determined in accordance with the rules and regulations of this
Act.
``(2) Notwithstanding rule revisions under paragraph (1),
the Commission's criteria for qualifying cogeneration
facilities in effect prior to the date on which the Commission
issues the final rule required by paragraph (1) shall continue
to apply to any cogeneration facility that--
``(A) was a qualifying cogeneration facility on the
date of enactment of subsection (m), or
``(B) had filed with the Commission a notice of
self-certification, self-recertification or an
application for Commission certification under 18
C.F.R. 292.207 prior to the date on which the
Commission issues the final rule required by paragraph
(1).''.
(b) Elimination of Ownership Limitations.--
(1) Qualifying small power production facility.--
Section 3(17)(C) of the Federal Power Act (16 U.S.C.
796(17)(C)) is amended to read as follows:
``(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;''.
(2) Qualifying cogeneration facility.--Section
3(18)(B) of the Federal Power Act (16 U.S.C.
796(18)(B)) is amended to read as follows:
``(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. 1254. INTERCONNECTION.
(a) Adoption of Standards.--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:
``(15) Interconnection.--Each electric utility
shall make available, upon request, interconnection
service to any electric consumer that the electric
utility serves. For purposes of this paragraph, the
term `interconnection service' means service to an
electric consumer under which an on-site generating
facility on the consumer's premises shall be connected
to the local distribution facilities. Interconnection
services shall be offered based upon the standards
developed by the Institute of Electrical and
Electronics Engineers: IEEE Standard 1547 for
Interconnecting Distributed Resources with Electric
Power Systems, as they may be amended from time to
time. In addition, agreements and procedures shall be
established whereby the services are offered shall
promote current best practices of interconnection for
distributed generation, including but not limited to
practices stipulated in model codes adopted by
associations of state regulatory agencies. All such
agreements and procedures shall be just and reasonable,
and not unduly discriminatory or preferential.''.
(b) Compliance.--
(1) Time limitations.--Section 112(b) of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C.
2622(b)) is amended by adding at the end the following:
``(5)(A) Not later than one year after the
enactment of this paragraph, each State regulatory
authority (with respect to each electric utility for
which it has ratemaking authority) and each
nonregulated utility shall commence the consideration
referred to in section 111, or set a hearing date for
consideration, with respect to the standard established
by paragraph (15) of section 111(d).
``(B) Not later than two years after the date of
the enactment of the this paragraph, each State
regulatory authority (with respect to each electric
utility for which it has ratemaking authority), and
each nonregulated electric utility, shall complete the
consideration, and shall make the determination,
referred to in section 111 with respect to each
standard established by paragraph (15) of section
111(d).''.
(2) Failure to comply.--Section 112(d) of the
Public Utility Regulatory Policies Act of 1978 (16
U.S.C. 2622 (c)) is amended by adding at the end the
following: ``In the case of the standard established by
paragraph (15), the reference contained in this
subsection to the date of enactment of this Act shall
be deemed to be a reference to the date of enactment of
paragraph (15).''.
(3) Prior state actions.--
(A) In general.--Section 112 of the Public
Utility Regulatory Policies Act of 1978 (16
U.S.C. 2622) is amended by adding at the end
the following:
``(f) Prior State Actions.--Subsections (b) and (c) of this
section shall not apply to the standard established by
paragraph (15) of section 111(d) in the case of any electric
utility in a State if, before the enactment of this
subsection--
``(1) the State has implemented for such utility
the standard concerned (or a comparable standard);
``(2) the State regulatory authority for such State
or relevant nonregulated electric utility has conducted
a proceeding to consider implementation of the standard
concerned (or a comparable standard) for such utility;
or
``(3) the State legislature has voted on the
implementation of such standard (or a comparable
standard) for such utility.''.
(B) Cross reference.--Section 124 of such
Act (16 U.S.C. 2634) is amended by adding the
following at the end thereof: ``In the case of
each standard established by paragraph (15) of
section 111(d), the reference contained in this
subsection to the date of enactment of the Act
shall be deemed to be a reference to the date
of enactment of paragraph (15).''.
Subtitle F--Repeal of PUHCA
SEC. 1261. SHORT TITLE.
This subtitle may be cited as the ``Public Utility Holding
Company Act of 2005''.
SEC. 1262. DEFINITIONS.
For purposes of this subtitle:
(1) Affiliate.--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) Associate company.--The term ``associate
company'' of a company means any company in the same
holding company system with such company.
(3) Commission.--The term ``Commission'' means the
Federal Energy Regulatory Commission.
(4) Company.--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) Electric utility company.--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) Exempt wholesale generator and foreign utility
company.--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-5a,
79z-5b), as those sections existed on the day before
the effective date of this subtitle.
(7) Gas utility company.--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) Holding company.--
(A) In general.--The term ``holding
company'' means--
(i) 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
(ii) 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 1 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.
(B) Exclusions.--The term ``holding
company'' shall not include--
(i) a bank, savings association, or
trust company, or their operating
subsidiaries that own, control, or
hold, with the power to vote, public
utility or public utility holding
company securities so long as the
securities are--
(I) held as collateral for
a loan;
(II) held in the ordinary
course of business as a
fiduciary; or
(III) acquired solely for
purposes of liquidation and in
connection with a loan
previously contracted for and
owned beneficially for a period
of not more than two years; or
(ii) a broker or dealer that owns,
controls, or holds with the power to
vote public utility or public utility
holding company securities so long as
the securities are--
(I) not beneficially owned
by the broker or dealer and are
subject to any voting
instructions which may be given
by customers or their assigns;
or
(II) acquired within 12
months in the ordinary course
of business as a broker,
dealer, or underwriter with the
bona fide intention of
effecting distribution of the
specific securities so
acquired.
(9) Holding company system.--The term ``holding
company system'' means a holding company, together with
its subsidiary companies.
(10) Jurisdictional rates.--The term
``jurisdictional rates'' means rates accepted or
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) Natural gas company.--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) Person.--The term ``person'' means an
individual or company.
(13) Public utility.--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) Public-utility company.--The term ``public-
utility company'' means an electric utility company or
a gas utility company.
(15) State commission.--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) Subsidiary company.--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 1 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) Voting security.--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. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.
The Public Utility Holding Company Act of 1935 (15 U.S.C.
79 et seq.) is repealed.
SEC. 1264. 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 shall 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. 1265. 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, the holding company or any
associate company or affiliate thereof, other than such public-
utility company, 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) Limitation.--Subsection (a) does not apply to any
person that is a holding company solely by reason of ownership
of 1 or more qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.).
(c) Confidentiality of Information.--The production of
books, accounts, memoranda, and other records under subsection
(a) shall be 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.
(d) Effect on State Law.--Nothing in this section shall
preempt applicable State law concerning the provision of books,
accounts, memoranda, and other records, or in any way limit the
rights of any State to obtain books, accounts, memoranda, and
other records under any other Federal law, contract, or
otherwise.
(e) 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. 1266. EXEMPTION AUTHORITY.
(a) Rulemaking.--Not later than 90 days after the effective
date of this subtitle, the Commission shall issue a final rule
to exempt from the requirements of section 1264 (relating to
Federal access to books and records) any person that is a
holding company, solely with respect to 1 or more--
(1) qualifying facilities under the Public Utility
Regulatory Policies Act of 1978 (16 U.S.C. 2601 et
seq.);
(2) exempt wholesale generators; or
(3) foreign utility companies.
(b) Other Authority.--The Commission shall exempt a person
or transaction from the requirements of section 1264 (relating
to Federal access to books and records) if, upon application or
upon the motion of the Commission--
(1) 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 or natural gas company; or
(2) the Commission finds that any class of
transactions is not relevant to the jurisdictional
rates of a public utility or natural gas company.
SEC. 1267. AFFILIATE TRANSACTIONS.
(a) Commission Authority Unaffected.--Nothing in this
subtitle shall limit the authority of the Commission under the
Federal Power Act (16 U.S.C. 791a et seq.) to require that
jurisdictional rates are just and reasonable, including the
ability to deny or approve the pass through of costs, the
prevention of cross-subsidization, and the issuance of such
rules and regulations as are necessary or appropriate for the
protection of utility consumers.
(b) Recovery of Costs.--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 from an
associate company.
SEC. 1268. APPLICABILITY.
Except as otherwise specifically provided in this subtitle,
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), (3), or (4) acting
as such in the course of his or her official duty.
SEC. 1269. 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. 1270. 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. 1271. SAVINGS PROVISIONS.
(a) In General.--Nothing in this subtitle, or otherwise in
the Public Utility Holding Company Act of 1935, or rules,
regulations, or orders thereunder, 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 (other than an expiration
date or termination date) 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 et seq.) or the Natural Gas
Act (15 U.S.C. 717 et seq.).
(c) Tax Treatment.--Tax treatment under section 1081 of the
Internal Revenue Code of 1986 as a result of transactions
ordered in compliance with the Public Utility Holding Company
Act of 1935 (15 U.S.C. 79 et seq.) shall not be affected in any
manner due to the repeal of that Act and the enactment of the
Public Utility Holding Company Act of 2005.
SEC. 1272. IMPLEMENTATION.
Not later than 4 months after the date of enactment of this
subtitle, the Commission shall--
(1) issue such regulations as may be necessary or
appropriate to implement this subtitle (other than
section 1265, relating to State access to books and
records); 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. 1273. 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. 1274. EFFECTIVE DATE.
(a) In General.--Except for section 1272 (relating to
implementation), this subtitle shall take effect 6 months after
the date of enactment of this subtitle.
(b) Compliance With Certain Rules.--If the Commission
approves and makes effective any final rulemaking modifying the
standards of conduct governing entities that own, operate, or
control facilities for transmission of electricity in
interstate commerce or transportation of natural gas in
interstate commerce prior to the effective date of this
subtitle, any action taken by a public-utility company or
utility holding company to comply with the requirements of such
rulemaking shall not subject such public-utility company or
utility holding company to any regulatory requirement
applicable to a holding company under the Public Utility
Holding Company Act of 1935 (15 U.S.C. 79 et seq.).
SEC. 1275. SERVICE ALLOCATION.
(a) Definition of Public Utility.--In this section, the
term ``public utility'' has the meaning given the term in
section 201(e) of the Federal Power Act (16 U.S.C. 824(e)).
(b) FERC Review.--In the case of non-power goods or
administrative or management services provided by an associate
company organized specifically for the purpose of providing
such goods or services to any public utility in the same
holding company system, at the election of the system or a
State commission having jurisdiction over the public utility,
the Commission, after the effective date of this subtitle,
shall review and authorize the allocation of the costs for such
goods or services to the extent relevant to that associate
company.
(c) Effect on Federal and State Law.--Nothing in this
section shall affect the authority of the Commission or a State
commission under other applicable law.
(d) Rules.--Not later than 4 months after the date of
enactment of this Act, the Commission shall issue rules (which
rules shall be effective no earlier than the effective date of
this subtitle) to exempt from the requirements of this section
any company in a holding company system whose public utility
operations are confined substantially to a single State and any
other class of transactions that the Commission finds is not
relevant to the jurisdictional rates of a public utility.
SEC. 1276. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such funds as may
be necessary to carry out this subtitle.
SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.
(a) Conflict of Jurisdiction.--Section 318 of the Federal
Power Act (16 U.S.C. 825q) is repealed.
(b) Definitions.--(1) Section 201(g)(5) of the Federal
Power Act (16 U.S.C. 824(g)(5)) is amended by striking ``1935''
and inserting ``2005''.
(2) Section 214 of the Federal Power Act (16 U.S.C. 824m)
is amended by striking ``1935'' and inserting ``2005''.
Subtitle G--Market Transparency, Enforcement, and Consumer Protection
SEC. 1281. ELECTRICITY MARKET TRANSPARENCY.
Part II of the Federal Power Act is amended by adding at
the end the following:
``SEC. 220. ELECTRICITY MARKET TRANSPARENCY RULES.
``(a)(1) The Commission is directed to facilitate price
transparency in markets for the sale and transmission of
electric energy in interstate commerce, having due regard for
the public interest, the integrity of those markets, fair
competition, and the protection of consumers.
``(2) The Commission may prescribe such rules as the
Commission determines necessary and appropriate to carry out
the purposes of this section. The rules shall provide for the
dissemination, on a timely basis, of information about the
availability and prices of wholesale electric energy and
transmission service to the Commission, State commissions,
buyers and sellers of wholesale electric energy, users of
transmission services, and the public.
``(3) The Commission may--
``(A) obtain the information described in paragraph
(2) from any market participant; and
``(B) rely on entities other than the Commission to
receive and make public the information, subject to the
disclosure rules in subsection (b).
``(4) In carrying out this section, the Commission shall
consider the degree of price transparency provided by existing
price publishers and providers of trade processing services,
and shall rely on such publishers and services to the maximum
extent possible. The Commission may establish an electronic
information system if it determines that existing price
publications are not adequately providing price discovery or
market transparency. Nothing in this section, however, shall
affect any electronic information filing requirements in effect
under this Act as of the date of enactment of this section.
``(b)(1) Rules described in subsection (a)(2), if adopted,
shall exempt from disclosure information the Commission
determines would, if disclosed, be detrimental to the operation
of an effective market or jeopardize system security.
``(2) In determining the information to be made available
under this section and time to make the information available,
the Commission shall seek to ensure that consumers and
competitive markets are protected from the adverse effects of
potential collusion or other anticompetitive behaviors that can
be facilitated by untimely public disclosure of transaction-
specific information.
``(c)(1) Within 180 days of enactment of this section, the
Commission shall conclude a memorandum of understanding with
the Commodity Futures Trading Commission relating to
information sharing, which shall include, among other things,
provisions ensuring that information requests to markets within
the respective jurisdiction of each agency are properly
coordinated to minimize duplicative information requests, and
provisions regarding the treatment of proprietary trading
information.
``(2) Nothing in this section may be construed to limit or
affect the exclusive jurisdiction of the Commodity Futures
Trading Commission under the Commodity Exchange Act (7 U.S.C. 1
et seq.).
``(d) The Commission shall not require entities who have a
de minimis market presence to comply with the reporting
requirements of this section.
``(e)(1) Except as provided in paragraph (2), no person
shall be subject to any civil penalty under this section with
respect to any violation occurring more than 3 years before the
date on which the person is provided notice of the proposed
penalty under section 316A.
``(2) Paragraph (1) shall not apply in any case in which
the Commission finds that a seller that has entered into a
contract for the sale of electric energy at wholesale or
transmission service subject to the jurisdiction of the
Commission has engaged in fraudulent market manipulation
activities materially affecting the contract in violation of
section 222.
``(f) This section shall not apply to a transaction for the
purchase or sale of wholesale electric energy or transmission
services within the area described in section 212(k)(2)(A).''.
SEC. 1282. FALSE STATEMENTS.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 221. PROHIBITION ON FILING FALSE INFORMATION.
``No entity (including an entity described in section
201(f)) shall willfully and knowingly report any information
relating to the price of electricity sold at wholesale or the
availability of transmission capacity, which information the
person or any other entity knew to be false at the time of the
reporting, to a Federal agency with intent to fraudulently
affect the data being compiled by the Federal agency.''.
SEC. 1283. MARKET MANIPULATION.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 222. PROHIBITION OF ENERGY MARKET MANIPULATION.
``(a) In General.--It shall be unlawful for any entity
(including an entity described in section 201(f)), directly or
indirectly, to use or employ, in connection with the purchase
or sale of electric energy or the purchase or sale of
transmission services subject to the jurisdiction of the
Commission, any manipulative or deceptive device or contrivance
(as those terms are used in section 10(b) of the Securities
Exchange Act of 1934 (15 U.S.C. 78j(b))), in contravention of
such rules and regulations as the Commission may prescribe as
necessary or appropriate in the public interest or for the
protection of electric ratepayers.
``(b) No Private Right of Action.--Nothing in this section
shall be construed to create a private right of action.''.
SEC. 1284. ENFORCEMENT.
(a) Complaints.--Section 306 of the Federal Power Act (16
U.S.C. 825e) is amended--
(1) by inserting ``electric utility,'' after ``Any
person,''; and
(2) by 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--
(1) by inserting ``, electric utility, transmitting
utility, or other entity'' after ``person'' each place
it appears; and
(2) in the first sentence, by inserting before the
period at the end the following: ``, or in obtaining
information about the sale of electric energy at
wholesale in interstate commerce and the transmission
of electric energy in interstate commerce''.
(c) Review of Commission Orders.--Section 313(a) of the
Federal Power Act (16 U.S.C. 825l) is amended by inserting
``electric utility,'' after ``person,'' in the first 2 places
it appears and by striking ``any person unless such person''
and inserting ``any entity unless such entity''.
(d) Criminal Penalties.--Section 316 of the Federal Power
Act (16 U.S.C. 825o) is amended--
(1) in subsection (a)--
(A) by striking ``$5,000'' and inserting
``$1,000,000''; and
(B) by striking ``two years'' and inserting
``5 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) 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''.
SEC. 1285. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b))
is amended as follows:
(1) By 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) By striking ``60 days after'' in the third
sentence and inserting ``of''.
(3) By striking ``expiration of such 60-day
period'' in the third sentence and inserting
``publication date''.
(4) By striking the fifth sentence and inserting
the following: ``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.''.
SEC. 1286. REFUND AUTHORITY.
Section 206 of the Federal Power Act (16 U.S.C. 824e) is
amended by adding at the end the following:
``(e)(1) In this subsection:
``(A) The term `short-term sale' means an agreement
for the sale of electric energy at wholesale in
interstate commerce that is for a period of 31 days or
less (excluding monthly contracts subject to automatic
renewal).
``(B) The term `applicable Commission rule' means a
Commission rule applicable to sales at wholesale by
public utilities that the Commission determines after
notice and comment should also be applicable to
entities subject to this subsection.
``(2) If an entity described in section 201(f) voluntarily
makes a short-term sale of electric energy through an organized
market in which the rates for the sale are established by
Commission-approved tariff (rather than by contract) and the
sale violates the terms of the tariff or applicable Commission
rules in effect at the time of the sale, the entity shall be
subject to the refund authority of the Commission under this
section with respect to the violation.
``(3) This section shall not apply to--
``(A) any entity that sells in total (including
affiliates of the entity) less than 8,000,000 megawatt
hours of electricity per year; or
``(B) an electric cooperative.
``(4)(A) The Commission shall have refund authority under
paragraph (2) with respect to a voluntary short term sale of
electric energy by the Bonneville Power Administration only if
the sale is at an unjust and unreasonable rate.
``(B) The Commission may order a refund under subparagraph
(A) only for short-term sales made by the Bonneville Power
Administration at rates that are higher than the highest just
and reasonable rate charged by any other entity for a short-
term sale of electric energy in the same geographic market for
the same, or most nearly comparable, period as the sale by the
Bonneville Power Administration.
``(C) In the case of any Federal power marketing agency or
the Tennessee Valley Authority, the Commission shall not assert
or exercise any regulatory authority or power under paragraph
(2) other than the ordering of refunds to achieve a just and
reasonable rate.''.
SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES.
(a) Privacy.--The Federal Trade Commission may issue rules
protecting the privacy of electric consumers from the
disclosure of consumer information obtained in connection with
the sale or delivery of electric energy to electric consumers.
(b) Slamming.--The Federal Trade Commission may issue rules
prohibiting the change of selection of an electric utility
except with the informed consent of the electric consumer or if
approved by the appropriate State regulatory authority.
(c) Cramming.--The Federal Trade Commission may issue rules
prohibiting the sale of goods and services to an electric
consumer unless expressly authorized by law or the electric
consumer.
(d) Rulemaking.--The Federal Trade Commission shall proceed
in accordance with section 553 of title 5, United States Code,
when prescribing a rule under this section.
(e) 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.
(f) Definitions.--For purposes of this section:
(1) State regulatory authority.--The term ``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.--The
terms ``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).
SEC. 1288. AUTHORITY OF COURT TO PROHIBIT INDIVIDUALS FROM SERVING AS
OFFICERS, DIRECTORS, AND ENERGY TRADERS.
Section 314 of the Federal Power Act (16 U.S.C. 825m) is
amended by adding at the end the following:
``(d) In any proceedings under subsection (a), the court
may prohibit, conditionally or unconditionally, and permanently
or for such period of time as the court determines, any
individual who is engaged or has engaged in practices
constituting a violation of section 221 (and related rules and
regulations) from--
``(1) acting as an officer or director of an
electric utility; or
``(2) engaging in the business of purchasing or
selling--
``(A) electric energy; or
``(B) transmission services subject to the
jurisdiction of the Commission.''.
SEC. 1289. MERGER REVIEW REFORM.
(a) In General.--Section 203(a) of the Federal Power Act
(16 U.S.C. 824b(a)) is amended to read as follows:
``(a)(1) No public utility shall, without first having
secured an order of the Commission authorizing it to do so--
``(A) sell, lease, or otherwise dispose of the
whole of its facilities subject to the jurisdiction of
the Commission, or any part thereof of a value in
excess of $10,000,000;
``(B) merge or consolidate, directly or indirectly,
such facilities or any part thereof with those of any
other person, by any means whatsoever;
``(C) purchase, acquire, or take any security with
a value in excess of $10,000,000 of any other public
utility; or
``(D) purchase, lease, or otherwise acquire an
existing generation facility--
``(i) that has a value in excess of
$10,000,000; and
``(ii) that is used for interstate
wholesale sales and over which the Commission
has jurisdiction for ratemaking purposes.
``(2) No holding company in a holding company system that
includes a transmitting utility or an electric utility shall
purchase, acquire, or take any security with a value in excess
of $10,000,000 of, or, by any means whatsoever, directly or
indirectly, merge or consolidate with, a transmitting utility,
an electric utility company, or a holding company in a holding
company system that includes a transmitting utility, or an
electric utility company, with a value in excess of $10,000,000
without first having secured an order of the Commission
authorizing it to do so.
``(3) Upon receipt of an application for such approval the
Commission shall give reasonable notice in writing to the
Governor and State commission of each of the States in which
the physical property affected, or any part thereof, is
situated, and to such other persons as it may deem advisable.
``(4) After notice and opportunity for hearing, the
Commission shall approve the proposed disposition,
consolidation, acquisition, or change in control, if it finds
that the proposed transaction will be consistent with the
public interest, and will not result in cross-subsidization of
a non-utility associate company or the pledge or encumbrance of
utility assets for the benefit of an associate company, unless
the Commission determines that the cross-subsidization, pledge,
or encumbrance will be consistent with the public interest.
``(5) The Commission shall, by rule, adopt procedures for
the expeditious consideration of applications for the approval
of dispositions, consolidations, or acquisitions, under this
section. Such rules shall identify classes of transactions, or
specify criteria for transactions, that normally meet the
standards established in paragraph (4). The Commission shall
provide expedited review for such transactions. The Commission
shall grant or deny any other application for approval of a
transaction not later than 180 days after the application is
filed. If the Commission does not act within 180 days, such
application shall be deemed granted unless the Commission
finds, based on good cause, that further consideration is
required to determine whether the proposed transaction meets
the standards of paragraph (4) and issues an order tolling the
time for acting on the application for not more than 180 days,
at the end of which additional period the Commission shall
grant or deny the application.
``(6) For purposes of this subsection, the terms `associate
company', `holding company', and `holding company system' have
the meaning given those terms in the Public Utility Holding
Company Act of 2005.''.
(b) Effective Date.--The amendments made by this section
shall take effect 6 months after the date of enactment of this
Act.
(c) Transition Provision.--The amendments made by
subsection (a) shall not apply to any application under section
203 of the Federal Power Act (16 U.S.C. 824b) that was filed on
or before the date of enactment of this Act.
SEC. 1290. RELIEF FOR EXTRAORDINARY VIOLATIONS.
(a) Application.--This section applies to any contract
entered into the Western Interconnection prior to June 20,
2001, with a seller of wholesale electricity that the
Commission has--
(1) found to have manipulated the electricity
market resulting in unjust and unreasonable rates; and
(2) revoked the seller's authority to sell any
electricity at market-based rates.
(b) Relief.--Notwithstanding section 222 of the Federal
Power Act (as added by section 1262), any provision of title
11, United States Code, or any other provision of law, in the
case of a contract described in subsection (a), the Commission
shall have exclusive jurisdiction under the Federal Power Act
(16 U.S.C. 791a et seq.) to determine whether a requirement to
make termination payments for power not delivered by the
seller, or any successor in interest of the seller, is not
permitted under a rate schedule (or contract under such a
schedule) or is otherwise unlawful on the grounds that the
contract is unjust and unreasonable or contrary to the public
interest.
(c) Applicability.--This section applies to any proceeding
pending on the date of enactment of this section involving a
seller described in subsection (a) in which there is not a
final, nonappealable order by the Commission or any other
jurisdiction determining the respective rights of the seller.
Subtitle H--Definitions
SEC. 1291. DEFINITIONS.
(a) Commission.--In this title, the term ``Commission''
means the Federal Energy Regulatory Commission.
(b) Amendment.--Section 3 of the Federal Power Act (16
U.S.C. 796) is amended--
(1) by striking paragraphs (22) and (23) and
inserting the following:
``(22) Electric utility.--(A) The term `electric
utility' means a person or Federal or State agency
(including an entity described in section 201(f)) that
sells electric energy.
``(B) The term `electric utility' includes the
Tennessee Valley Authority and each Federal power
marketing administration.
``(23) Transmitting utility.--The term
`transmitting utility' means an entity (including an
entity described in section 201(f)) that owns,
operates, or controls facilities used for the
transmission of electric energy--
``(A) in interstate commerce;
``(B) for the sale of electric energy at
wholesale.''; and
(2) by adding at the end the following:
``(26) Electric cooperative.--The term `electric
cooperative' means a cooperatively owned electric
utility.
``(27) RTO.--The term `Regional Transmission
Organization' or `RTO' means an entity of sufficient
regional scope approved by the Commission--
``(A) to exercise operational or functional
control of facilities used for the transmission
of electric energy in interstate commerce; and
``(B) to ensure nondiscriminatory access to
the facilities.
``(28) ISO.--The term `Independent System Operator'
or `ISO' means an entity approved by the Commission--
``(A) to exercise operational or functional
control of facilities used for the transmission
of electric energy in interstate commerce; and
``(B) to ensure nondiscriminatory access to
the facilities.
``(29) Transmission organization.--The term
`Transmission Organization' means a Regional
Transmission Organization, Independent System Operator,
independent transmission provider, or other
transmission organization finally approved by the
Commission for the operation of transmission
facilities.''.
(c) Applicability.--Section 201(f) of the Federal Power Act
(16 U.S.C. 824(f)) is amended by striking ``political
subdivision of a state,'' and inserting ``political subdivision
of a State, an electric cooperative that receives financing
under the Rural Electrification Act of 1936 (7 U.S.C. 901 et
seq.) or that sells less than 4,000,000 megawatt hours of
electricity per year,''.
Subtitle I--Technical and Conforming Amendments
SEC. 1295. CONFORMING AMENDMENTS.
(a) Section 201 of the Federal Power Act (16 U.S.C. 824) is
amended--
(1) in subsection (b)(2)--
(A) in the first sentence--
(i) by striking ``The'' and
inserting ``Notwithstanding section
201(f), the''; and
(ii) by striking ``210, 211, and
212'' and inserting ``203(a)(2),
206(e), 210, 211, 211A, 212, 215, 216,
217, 218, 219, 220, 221, and 222''; and
(B) in the second sentence--
(i) by inserting ``or rule'' after
``any order''; and
(ii) by striking ``210 or 211'' and
inserting ``203(a)(2), 206(e), 210,
211, 211A, 212, 215, 216, 217, 218,
219, 220, 221, or 222''; and
(2) in subsection (e), by striking ``210, 211, or
212'' and inserting ``206(e), 206(f), 210, 211, 211A,
212, 215, 216, 217, 218, 219, 220, 221, or 222''.
(b) Section 206 of the Federal Power Act (16 U.S.C. 824e)
is amended--
(1) in the first sentence of subsection (a), by
striking ``hearing had'' and inserting ``hearing
held''; and
(2) in the seventh sentence of subsection (b), by
striking ``the public utility to make''.
(c) Section 211 of the Federal Power Act (16 U.S.C. 824j)
is amended--
(1) in subsection (c)--
(A) by striking ``(2)'';
(B) by striking ``(A)'' and inserting
``(1)''
(C) by striking ``(B)'' and inserting
``(2)''; and
(D) by striking ``termination of
modification'' and inserting ``termination or
modification''; and
(2) in the second sentence of subsection (d)(1), by
striking ``electric utility'' the second place it
appears and inserting ``transmitting utility''.
(d) Section 315(c) of the Federal Power Act (16 U.S.C.
825n(c)) is amended by striking ``subsection'' and inserting
``section''.
Subtitle J--Economic Dispatch
SEC. 1298. ECONOMIC DISPATCH.
Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is
amended by adding at the end the following:
``SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH.
``(a) In General.--The Commission shall convene joint
boards on a regional basis pursuant to section 209 of this Act
to study the issue of security constrained economic dispatch
for the various market regions. The Commission shall designate
the appropriate regions to be covered by each such joint board
for purposes of this section.
``(b) Membership.--The Commission shall request each State
to nominate a representative for the appropriate regional joint
board, and shall designate a member of the Commission to chair
and participate as a member of each such board.
``(c) Powers.--The sole authority of each joint board
convened under this section shall be to consider issues
relevant to what constitutes `security constrained economic
dispatch' and how such a mode of operating an electric energy
system affects or enhances the reliability and affordability of
service to customers in the region concerned and to make
recommendations to the Commission regarding such issues.
``(d) Report to the Congress.--Within one year after
enactment of this section, the Commission shall issue a report
and submit such report to the Congress regarding the
recommendations of the joint boards under this section and the
Commission may consolidate the recommendations of more than one
such regional joint board, including any consensus
recommendations for statutory or regulatory reform.''.
TITLE XIII--ENERGY POLICY TAX INCENTIVES
SEC. 1300. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) Short Title.--This title may be cited as the ``Energy
Tax Incentives Act of 2005''.
(b) Amendment of 1986 Code.--Except as otherwise expressly
provided, whenever in this title an amendment or repeal is
expressed in terms of an amendment to, or repeal of, a section
or other provision, the reference shall be considered to be
made to a section or other provision of the Internal Revenue
Code of 1986.
Subtitle A--Electricity Infrastructure
SEC. 1301. EXTENSION AND MODIFICATION OF RENEWABLE ELECTRICITY
PRODUCTION CREDIT.
(a) 2-Year Extension for Certain Facilities.--Section 45(d)
(relating to qualified facilities) is amended--
(1) by striking ``January 1, 2006'' each place it
appears in paragraphs (1), (2), (3), (5), (6), and (7)
and inserting ``January 1, 2008'', and
(2) by striking ``January 1, 2006'' in paragraph
(4) and inserting ``January 1, 2008 (January 1, 2006,
in the case of a facility using solar energy)''.
(b) Increase in Credit Period.--Section 45(b)(4)(B)
(relating to credit period) is amended--
(1) by inserting ``or clause (iii)'' after ``clause
(ii)'' in clause (i), and
(2) by adding at the end the following:
``(iii) Termination.--Clause (i)
shall not apply to any facility placed
in service after the date of the
enactment of this clause.''.
(c) Expansion of Qualified Resources to Certain
Hydropower.--
(1) In general.--Section 45(c)(1) (defining
qualified energy resources) is amended by striking
``and'' at the end of subparagraph (F), by striking the
period at the end of subparagraph (G) and inserting ``,
and'', and by adding at the end the following new
subparagraph:
``(H) qualified hydropower production.''.
(2) Credit rate.--Section 45(b)(4)(A) (relating to
credit rate) is amended by striking ``or (7)'' and
inserting ``(7), or (9)''.
(3) Definition of resources.--Section 45(c)
(relating to qualified energy resources and refined
coal) is amended by adding at the end the following new
paragraph:
``(8) Qualified hydropower production.--
``(A) In general.--The term `qualified
hydropower production' means--
``(i) in the case of any
hydroelectric dam which was placed in
service on or before the date of the
enactment of this paragraph, the
incremental hydropower production for
the taxable year, and
``(ii) in the case of any
nonhydroelectric dam described in
subparagraph (C), the hydropower
production from the facility for the
taxable year.
``(B) Determination of incremental
hydropower production.--
``(i) In general.--For purposes of
subparagraph (A), incremental
hydropower production for any taxable
year shall be equal to the percentage
of average annual hydropower production
at the facility attributable to the
efficiency improvements or additions of
capacity placed in service after the
date of the enactment of this
paragraph, determined by using the same
water flow information used to
determine an historic average annual
hydropower production baseline for such
facility. Such percentage and baseline
shall be certified by the Federal
Energy Regulatory Commission.
``(ii) Operational changes
disregarded.--For purposes of clause
(i), the determination of incremental
hydropower production shall not be
based on any operational changes at
such facility not directly associated
with the efficiency improvements or
additions of capacity.
``(C) Nonhydroelectric dam.--For purposes
of subparagraph (A), a facility is described in
this subparagraph if--
``(i) the facility is licensed by
the Federal Energy Regulatory
Commission and meets all other
applicable environmental, licensing,
and regulatory requirements,
``(ii) the facility was placed in
service before the date of the
enactment of this paragraph and did not
produce hydroelectric power on the date
of the enactment of this paragraph, and
``(iii) turbines or other
generating devices are to be added to
the facility after such date to produce
hydroelectric power, but only if there
is not any enlargement of the diversion
structure, or construction or
enlargement of a bypass channel, or the
impoundment or any withholding of any
additional water from the natural
stream channel.''.
(4) Facilities.--Section 45(d) (relating to
qualified facilities) is amended by adding at the end
the following new paragraph:
``(9) Qualified hydropower facility.--In the case
of a facility producing qualified hydroelectric
production described in subsection (c)(8), the term
`qualified facility' means--
``(A) in the case of any facility producing
incremental hydropower production, such
facility but only to the extent of its
incremental hydropower production attributable
to efficiency improvements or additions to
capacity described in subsection (c)(8)(B)
placed in service after the date of the
enactment of this paragraph and before January
1, 2008, and
``(B) any other facility placed in service
after the date of the enactment of this
paragraph and before January 1, 2008.
``(C) Credit period.--In the case of a
qualified facility described in subparagraph
(A), the 10-year period referred to in
subsection (a) shall be treated as beginning on
the date the efficiency improvements or
additions to capacity are placed in service.''.
(d) Indian Coal.--
(1) Production facilities.--Subsection (e) of
section 45 (relating to definitions and special rules)
is amended by adding at the end the following new
paragraph:
``(10) Indian coal production facilities.--
``(A) Determination of credit amount.--In
the case of a producer of Indian coal, the
credit determined under this section (without
regard to this paragraph) for any taxable year
shall be increased by an amount equal to the
applicable dollar amount per ton of Indian
coal--
``(i) produced by the taxpayer at
an Indian coal production facility
during the 7-year period beginning on
January 1, 2006, and
``(ii) sold by the taxpayer--
``(I) to an unrelated
person, and
``(II) during such 7-year
period and such taxable year.
``(B) Applicable dollar amount.--
``(i) In general.--The term
`applicable dollar amount' for any
taxable year beginning in a calendar
year means--
``(I) $1.50 in the case of
calendar years 2006 through
2009, and
``(II) $2.00 in the case of
calendar years beginning after
2009.
``(ii) Inflation adjustment.--In
the case of any calendar year after
2006, each of the dollar amounts under
clause (i) shall be equal to the
product of such dollar amount and the
inflation adjustment factor determined
under paragraph (2)(B) for the calendar
year, except that such paragraph shall
be applied by substituting `2005' for
`1992'.
``(C) Application of rules.--Rules similar
to the rules of the subsection (b)(3) and
paragraphs (1), (3), (4), and (5) of this
subsection shall apply for purposes of
determining the amount of any increase under
this paragraph.
``(D) Treatment as specified credit.--The
increase in the credit determined under
subsection (a) by reason of this paragraph with
respect to any facility shall be treated as a
specified credit for purposes of section
38(c)(4)(A) during the 4-year period beginning
on the later of January 1, 2006, or the date on
which such facility is placed in service by the
taxpayer.''.
(2) Resource.--Subsection (c) of section 45
(relating to qualified energy resources and refined
coal), as amended by this Act, is amended by adding at
the end the following new paragraph:
``(9) Indian coal.--
``(A) In general.--The term `Indian coal'
means coal which is produced from coal reserves
which, on June 14, 2005--
``(i) were owned by an Indian
tribe, or
``(ii) were held in trust by the
United States for the benefit of an
Indian tribe or its members.
``(B) Indian tribe.--For purposes of this
paragraph, the term `Indian tribe' has the
meaning given such term by section
7871(c)(3)(E)(ii).''.
(3) Indian coal production facility.--Subsection
(d) of section 45, as amended by this Act, is amended
by adding at the end the following new paragraph:
``(10) Indian coal production facility.--The term
`Indian coal production facility' means a facility
which is placed in service before January 1, 2009.''.
(4) Conforming amendment.--The heading for section
45(c) is amended by striking ``Qualified Energy
Resources and Refined Coal'' and inserting
``Resources''.
(e) Technical Amendment Related to Trash Combustion
Facilities.--Section 45(d)(7) (relating to trash combustion
facilities) is amended by adding at the end the following:
``Such term shall include a new unit placed in service in
connection with a facility placed in service on or before the
date of the enactment of this paragraph, but only to the extent
of the increased amount of electricity produced at the facility
by reason of such new unit.''.
(f) Additional Technical Amendments Related to Section 710
of the American Jobs Creation Act of 2004.--
(1) Clause (ii) of section 45(b)(4)(B) is amended
by striking ``the date of the enactment of this Act''
and inserting ``January 1, 2005,''.
(2) Clause (ii) of section 45(c)(3)(A) is amended
by inserting ``or any nonhazardous lignin waste
material'' after ``cellulosic waste material''.
(3) Subsection (e) of section 45 is amended by
striking paragraph (6).
(4)(A) Paragraph (9) of section 45(e) is amended to
read as follows:
``(9) Coordination with credit for producing fuel
from a nonconventional source.--
``(A) In general.--The term `qualified
facility' shall not include any facility which
produces electricity from gas derived from the
biodegradation of municipal solid waste if such
biodegradation occurred in a facility (within
the meaning of section 29) the production from
which is allowed as a credit under section 29
for the taxable year or any prior taxable year.
``(B) Refined coal facilities.--The term
`refined coal production facility' shall not
include any facility the production from which
is allowed as a credit under section 29 for the
taxable year or any prior taxable year.''.
(B) Subparagraph (C) of section 45(e)(8) is amended
by striking ``and (9)''.
(5) Subclause (I) of section 168(e)(3)(B)(vi) is
amended to read as follows:
``(I) is described in
subparagraph (A) of section
48(a)(3) (or would be so
described if `solar and wind'
were substituted for `solar' in
clause (i) thereof and the last
sentence of such section did
not apply to such
subparagraph),''.
(6) Paragraph (4) of section 710(g) of the American
Jobs Creation Act of 2004 is amended by striking
``January 1, 2004'' and inserting ``January 1, 2005''.
(g) Effective Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall take
effect of the date of the enactment of this Act.
(2) Technical amendments.--The amendments made by
subsections (e) and (f) shall take effect as if
included in the amendments made by section 710 of the
American Jobs Creation Act of 2004.
SEC. 1302. APPLICATION OF SECTION 45 CREDIT TO AGRICULTURAL
COOPERATIVES.
(a) In General.--Section 45(e) (relating to definitions and
special rules), as amended by this Act, is amended by adding at
the end the following:
``(11) Allocation of credit to patrons of
agricultural cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of
an eligible cooperative organization,
any portion of the credit determined
under subsection (a) for the taxable
year may, at the election of the
organization, be apportioned among
patrons of the organization on the
basis of the amount of business done by
the patrons during the taxable year.
``(ii) Form and effect of
election.--An election under clause (i)
for any taxable year shall be made on a
timely filed return for such year. Such
election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless
the organization designates the
apportionment as such in a written
notice mailed to its patrons during the
payment period described in section
1382(d).
``(B) Treatment of organizations and
patrons.--The amount of the credit apportioned
to any patrons under subparagraph (A)--
``(i) shall not be included in the
amount determined under subsection (a)
with respect to the organization for
the taxable year, and
``(ii) shall be included in the
amount determined under subsection (a)
for the first taxable year of each
patron ending on or after the last day
of the payment period (as defined in
section 1382(d)) for the taxable year
of the organization or, if earlier, for
the taxable year of each patron ending
on or after the date on which the
patron receives notice from the
cooperative of the apportionment.
``(C) Special rules for decrease in credits
for taxable year.--If the amount of the credit
of a cooperative organization determined under
subsection (a) for a taxable year is less than
the amount of such credit shown on the return
of the cooperative organization for such year,
an amount equal to the excess of--
``(i) such reduction, over
``(ii) the amount not apportioned
to such patrons under subparagraph (A)
for the taxable year,
shall be treated as an increase in tax imposed
by this chapter on the organization. Such
increase shall not be treated as tax imposed by
this chapter for purposes of determining the
amount of any credit under this chapter.
``(D) Eligible cooperative defined.--For
purposes of this section the term `eligible
cooperative' means a cooperative organization
described in section 1381(a) which is owned
more than 50 percent by agricultural producers
or by entities owned by agricultural producers.
For this purpose an entity owned by an
agricultural producer is one that is more than
50 percent owned by agricultural producers.''.
(b) Conforming Amendment.--The last sentence of section
55(c)(1) is amended by inserting ``45(e)(11)(C),'' after
``section''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years of cooperative organizations
ending after the date of the enactment of this Act.
SEC. 1303. CLEAN RENEWABLE ENERGY BONDS.
(a) In General.--Part IV of subchapter A of chapter 1
(relating to credits against tax) is amended by adding at the
end the following new subpart:
``Subpart H--Nonrefundable Credit to Holders of Certain Bonds
``Sec. 54. Credit to holders of clean renewable energy bonds.
``SEC. 54. CREDIT TO HOLDERS OF CLEAN RENEWABLE ENERGY BONDS.
``(a) Allowance of Credit.--If a taxpayer holds a clean
renewable energy bond on 1 or more credit allowance dates of
the bond occurring during any taxable year, there shall be
allowed as a credit against the tax imposed by this chapter for
the taxable year an amount equal to the sum of the credits
determined under subsection (b) with respect to such dates.
``(b) Amount of Credit.--
``(1) In general.--The amount of the credit
determined under this subsection with respect to any
credit allowance date for a clean renewable energy bond
is 25 percent of the annual credit determined with
respect to such bond.
``(2) Annual credit.--The annual credit determined
with respect to any clean renewable energy bond is the
product of--
``(A) the credit rate determined by the
Secretary under paragraph (3) for the day on
which such bond was sold, multiplied by
``(B) the outstanding face amount of the
bond.
``(3) Determination.--For purposes of paragraph
(2), with respect to any clean renewable energy bond,
the Secretary shall determine daily or cause to be
determined daily a credit rate which shall apply to the
first day on which there is a binding, written contract
for the sale or exchange of the bond. The credit rate
for any day is the credit rate which the Secretary or
the Secretary's designee estimates will permit the
issuance of clean renewable energy bonds with a
specified maturity or redemption date without discount
and without interest cost to the qualified issuer.
``(4) Credit allowance date.--For purposes of this
section, the term `credit allowance date' means--
``(A) March 15,
``(B) June 15,
``(C) September 15, and
``(D) December 15.
Such term also includes the last day on which the bond
is outstanding.
``(5) Special rule for issuance and redemption.--In
the case of a bond which is issued during the 3-month
period ending on a credit allowance date, the amount of
the credit determined under this subsection with
respect to such credit allowance date shall be a
ratable portion of the credit otherwise determined
based on the portion of the 3-month period during which
the bond is outstanding. A similar rule shall apply
when the bond is redeemed or matures.
``(c) Limitation Based on Amount of Tax.--The credit
allowed under subsection (a) for any taxable year shall not
exceed the excess of--
``(1) the sum of the regular tax liability (as
defined in section 26(b)) plus the tax imposed by
section 55, over
``(2) the sum of the credits allowable under this
part (other than subpart C and this section).
``(d) Clean Renewable Energy Bond.--For purposes of this
section--
``(1) In general.--The term `clean renewable energy
bond' means any bond issued as part of an issue if--
``(A) the bond is issued by a qualified
issuer pursuant to an allocation by the
Secretary to such issuer of a portion of the
national clean renewable energy bond limitation
under subsection (f)(2),
``(B) 95 percent or more of the proceeds of
such issue are to be used for capital
expenditures incurred by qualified borrowers
for 1 or more qualified projects,
``(C) the qualified issuer designates such
bond for purposes of this section and the bond
is in registered form, and
``(D) the issue meets the requirements of
subsection (h).
``(2) Qualified project; special use rules.--
``(A) In general.--The term `qualified
project' means any qualified facility (as
determined under section 45(d) without regard
to paragraph (10) and to any placed in service
date) owned by a qualified borrower.
``(B) Refinancing rules.--For purposes of
paragraph (1)(B), a qualified project may be
refinanced with proceeds of a clean renewable
energy bond only if the indebtedness being
refinanced (including any obligation directly
or indirectly refinanced by such indebtedness)
was originally incurred by a qualified borrower
after the date of the enactment of this
section.
``(C) Reimbursement.--For purposes of
paragraph (1)(B), a clean renewable energy bond
may be issued to reimburse a qualified borrower
for amounts paid after the date of the
enactment of this section with respect to a
qualified project, but only if--
``(i) prior to the payment of the
original expenditure, the qualified
borrower declared its intent to
reimburse such expenditure with the
proceeds of a clean renewable energy
bond,
``(ii) not later than 60 days after
payment of the original expenditure,
the qualified issuer adopts an official
intent to reimburse the original
expenditure with such proceeds, and
``(iii) the reimbursement is made
not later than 18 months after the date
the original expenditure is paid.
``(D) Treatment of changes in use.--For
purposes of paragraph (1)(B), the proceeds of
an issue shall not be treated as used for a
qualified project to the extent that a
qualified borrower or qualified issuer takes
any action within its control which causes such
proceeds not to be used for a qualified
project. The Secretary shall prescribe
regulations specifying remedial actions that
may be taken (including conditions to taking
such remedial actions) to prevent an action
described in the preceding sentence from
causing a bond to fail to be a clean renewable
energy bond.
``(e) Maturity Limitations.--
``(1) Duration of term.--A bond shall not be
treated as a clean renewable energy bond if the
maturity of such bond exceeds the maximum term
determined by the Secretary under paragraph (2) with
respect to such bond.
``(2) Maximum term.--During each calendar month,
the Secretary shall determine the maximum term
permitted under this paragraph for bonds issued during
the following calendar month. Such maximum term shall
be the term which the Secretary estimates will result
in the present value of the obligation to repay the
principal on the bond being equal to 50 percent of the
face amount of such bond. Such present value shall be
determined without regard to the requirements of
subsection (l)(6) and using as a discount rate the
average annual interest rate of tax-exempt obligations
having a term of 10 years or more which are issued
during the month. If the term as so determined is not a
multiple of a whole year, such term shall be rounded to
the next highest whole year.
``(f) Limitation on Amount of Bonds Designated.--
``(1) National limitation.--There is a national
clean renewable energy bond limitation of $800,000,000.
``(2) Allocation by secretary.--The Secretary shall
allocate the amount described in paragraph (1) among
qualified projects in such manner as the Secretary
determines appropriate, except that the Secretary may
not allocate more than $500,000,000 of the national
clean renewable energy bond limitation to finance
qualified projects of qualified borrowers which are
governmental bodies.
``(g) Credit Included in Gross Income.--Gross income
includes the amount of the credit allowed to the taxpayer under
this section (determined without regard to subsection (c)) and
the amount so included shall be treated as interest income.
``(h) Special Rules Relating to Expenditures.--
``(1) In general.--An issue shall be treated as
meeting the requirements of this subsection if, as of
the date of issuance, the qualified issuer reasonably
expects--
``(A) at least 95 percent of the proceeds
of such issue are to be spent for 1 or more
qualified projects within the 5-year period
beginning on the date of issuance of the clean
energy bond,
``(B) a binding commitment with a third
party to spend at least 10 percent of the
proceeds of such issue will be incurred within
the 6-month period beginning on the date of
issuance of the clean energy bond or, in the
case of a clean energy bond the proceeds of
which are to be loaned to 2 or more qualified
borrowers, such binding commitment will be
incurred within the 6-month period beginning on
the date of the loan of such proceeds to a
qualified borrower, and
``(C) such projects will be completed with
due diligence and the proceeds of such issue
will be spent with due diligence.
``(2) Extension of period.--Upon submission of a
request prior to the expiration of the period described
in paragraph (1)(A), the Secretary may extend such
period if the qualified issuer establishes that the
failure to satisfy the 5-year requirement is due to
reasonable cause and the related projects will continue
to proceed with due diligence.
``(3) Failure to spend required amount of bond
proceeds within 5 years.--To the extent that less than
95 percent of the proceeds of such issue are expended
by the close of the 5-year period beginning on the date
of issuance (or if an extension has been obtained under
paragraph (2), by the close of the extended period),
the qualified issuer shall redeem all of the
nonqualified bonds within 90 days after the end of such
period. For purposes of this paragraph, the amount of
the nonqualified bonds required to be redeemed shall be
determined in the same manner as under section 142.
``(i) Special Rules Relating to Arbitrage.--A bond which is
part of an issue shall not be treated as a clean renewable
energy bond unless, with respect to the issue of which the bond
is a part, the qualified issuer satisfies the arbitrage
requirements of section 148 with respect to proceeds of the
issue.
``(j) Cooperative Electric Company; Qualified Energy Tax
Credit Bond Lender; Governmental Body; Qualified Borrower.--For
purposes of this section--
``(1) Cooperative electric company.--The term
`cooperative electric company' means a mutual or
cooperative electric company described in section
501(c)(12) or section 1381(a)(2)(C), or a not-for-
profit electric utility which has received a loan or
loan guarantee under the Rural Electrification Act.
``(2) Clean renewable energy bond lender.--The term
`clean renewable energy bond lender' means a lender
which is a cooperative which is owned by, or has
outstanding loans to, 100 or more cooperative electric
companies and is in existence on February 1, 2002, and
shall include any affiliated entity which is controlled
by such lender.
``(3) Governmental body.--The term `governmental
body' means any State, territory, possession of the
United States, the District of Columbia, Indian tribal
government, and any political subdivision thereof.
``(4) Qualified issuer.--The term `qualified
issuer' means--
``(A) a clean renewable energy bond lender,
``(B) a cooperative electric company, or
``(C) a governmental body.
``(5) Qualified borrower.--The term `qualified
borrower' means--
``(A) a mutual or cooperative electric
company described in section 501(c)(12) or
1381(a)(2)(C), or
``(B) a governmental body.
``(k) Special Rules Relating to Pool Bonds.--No portion of
a pooled financing bond may be allocable to any loan unless the
borrower has entered into a written loan commitment for such
portion prior to the issue date of such issue.
``(l) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Bond.--The term `bond' includes any
obligation.
``(2) Pooled financing bond.--The term `pooled
financing bond' shall have the meaning given such term
by section 149(f)(4)(A).
``(3) Partnership; s corporation; and other pass-
thru entities.--
``(A) In general.--Under regulations
prescribed by the Secretary, in the case of a
partnership, trust, S corporation, or other
pass-thru entity, rules similar to the rules of
section 41(g) shall apply with respect to the
credit allowable under subsection (a).
``(B) No basis adjustment.--In the case of
a bond held by a partnership or an S
corporation, rules similar to the rules under
section 1397E(i) shall apply.
``(4) Bonds held by regulated investment
companies.--If any clean renewable energy bond is held
by a regulated investment company, the credit
determined under subsection (a) shall be allowed to
shareholders of such company under procedures
prescribed by the Secretary.
``(5) Treatment for estimated tax purposes.--Solely
for purposes of sections 6654 and 6655, the credit
allowed by this section (determined without regard to
subsection (c)) to a taxpayer by reason of holding a
clean renewable energy bond on a credit allowance date
shall be treated as if it were a payment of estimated
tax made by the taxpayer on such date.
``(6) Ratable principal amortization required.--A
bond shall not be treated as a clean renewable energy
bond unless it is part of an issue which provides for
an equal amount of principal to be paid by the
qualified issuer during each calendar year that the
issue is outstanding.
``(7) Reporting.--Issuers of clean renewable energy
bonds shall submit reports similar to the reports
required under section 149(e).
``(m) Termination.--This section shall not apply with
respect to any bond issued after December 31, 2007.''.
(b) Reporting.--Subsection (d) of section 6049 (relating to
returns regarding payments of interest) is amended by adding at
the end the following new paragraph:
``(8) Reporting of credit on clean renewable energy
bonds.--
``(A) In general.--For purposes of
subsection (a), the term `interest' includes
amounts includible in gross income under
section 54(g) and such amounts shall be treated
as paid on the credit allowance date (as
defined in section 54(b)(4)).
``(B) Reporting to corporations, etc.--
Except as otherwise provided in regulations, in
the case of any interest described in
subparagraph (A), subsection (b)(4) shall be
applied without regard to subparagraphs (A),
(H), (I), (J), (K), and (L)(i) of such
subsection.
``(C) Regulatory authority.--The Secretary
may prescribe such regulations as are necessary
or appropriate to carry out the purposes of
this paragraph, including regulations which
require more frequent or more detailed
reporting.''.
(c) Conforming Amendments.--
(1) The table of subparts for part IV of subchapter
A of chapter 1 is amended by adding at the end the
following new item:
``Subpart H. Nonrefundable Credit to Holders of Certain Bonds.''.
(2) Section 1397E(c)(2) is amended by inserting ``,
and subpart H thereof'' after ``refundable credits''.
(3) Subsection (h) of section 1397E is amended to
read as follows:
``(h) Credit Treated as Nonrefundable Bondholder Credit.--
For purposes of this title, the credit allowed by this section
shall be treated as a credit allowable under subpart H of part
IV of subchapter A of this chapter.''.
(4) Section 6401(b)(1) is amended by striking ``and
G'' and inserting ``G, and H''.
(d) Issuance of Regulations.--The Secretary of Treasury
shall issue regulations required under section 54 of the
Internal Revenue Code of 1986 (as added by this section) not
later than 120 days after the date of the enactment of this
Act.
(e) Effective Date.--The amendments made by this section
shall apply to bonds issued after December 31, 2005.
SEC. 1304. TREATMENT OF INCOME OF CERTAIN ELECTRIC COOPERATIVES.
(a) Elimination of Sunset on Treatment of Income From Open
Access and Nuclear Decommissioning Transactions.--Section
501(c)(12)(C) is amended by striking the last sentence.
(b) Elimination of Sunset on Treatment of Income From Load
Loss Transactions.--Section 501(c)(12)(H) is amended by
striking clause (x).
(c) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1305. DISPOSITIONS OF TRANSMISSION PROPERTY TO IMPLEMENT FERC
RESTRUCTURING POLICY.
(a) In General.--Section 451(i)(3) (defining qualifying
electric transmission transaction) is amended by striking
``2007'' and inserting ``2008''.
(b) Technical Amendment Related to Section 909 of the
American Jobs Creation Act of 2004.--Clause (ii) of section
451(i)(4)(B) is amended by striking ``the close of the period
applicable under subsection (a)(2)(B) as extended under
paragraph (2)'' and inserting ``December 31, 2007''.
(c) Effective Dates.--
(1) In general.--The amendment made by subsection
(a) shall apply to transactions occurring after the
date of the enactment of this Act.
(2) Technical amendment.--The amendment made by
subsection (b) shall take effect as if included in the
amendments made by section 909 of the American Jobs
Creation Act of 2004.
SEC. 1306. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER
FACILITIES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits) is amended by
adding after section 45I the following new section:
``SEC. 45J. CREDIT FOR PRODUCTION FROM ADVANCED NUCLEAR POWER
FACILITIES.
``(a) General Rule.--For purposes of section 38, the
advanced nuclear power facility production credit of any
taxpayer for any taxable year is equal to the product of--
``(1) 1.8 cents, multiplied by
``(2) the kilowatt hours of electricity--
``(A) produced by the taxpayer at an
advanced nuclear power facility during the 8-
year period beginning on the date the facility
was originally placed in service, and
``(B) sold by the taxpayer to an unrelated
person during the taxable year.
``(b) National Limitation.--
``(1) In general.--The amount of credit which would
(but for this subsection and subsection (c)) be allowed
with respect to any facility for any taxable year shall
not exceed the amount which bears the same ratio to
such amount of credit as--
``(A) the national megawatt capacity
limitation allocated to the facility, bears to
``(B) the total megawatt nameplate capacity
of such facility.
``(2) Amount of national limitation.--The national
megawatt capacity limitation shall be 6,000 megawatts.
``(3) Allocation of limitation.--The Secretary
shall allocate the national megawatt capacity
limitation in such manner as the Secretary may
prescribe.
``(4) Regulations.--Not later than 6 months after
the date of the enactment of this section, the
Secretary shall prescribe such regulations as may be
necessary or appropriate to carry out the purposes of
this subsection. Such regulations shall provide a
certification process under which the Secretary, after
consultation with the Secretary of Energy, shall
approve and allocate the national megawatt capacity
limitation.
``(c) Other Limitations.--
``(1) Annual limitation.--The amount of the credit
allowable under subsection (a) (after the application
of subsection (b)) for any taxable year with respect to
any facility shall not exceed an amount which bears the
same ratio to $125,000,000 as--
``(A) the national megawatt capacity
limitation allocated under subsection (b) to
the facility, bears to
``(B) 1,000.
``(2) Other limitations.--Rules similar to the
rules of section 45(b)(1) shall apply for purposes of
this section.
``(d) Advanced Nuclear Power Facility.--For purposes of
this section--
``(1) In general.--The term `advanced nuclear power
facility' means any advanced nuclear facility--
``(A) which is owned by the taxpayer and
which uses nuclear energy to produce
electricity, and
``(B) which is placed in service after the
date of the enactment of this paragraph and
before January 1, 2021.
``(2) Advanced nuclear facility.--For purposes of
paragraph (1), the term `advanced nuclear facility'
means any nuclear facility the reactor design for which
is approved after December 31, 1993, by the Nuclear
Regulatory Commission (and such design or a
substantially similar design of comparable capacity was
not approved on or before such date).
``(e) Other Rules To Apply.--Rules similar to the rules of
paragraphs (1), (2), (3), (4), and (5) of section 45(e) shall
apply for purposes of this section.''.
(b) Credit Treated as Business Credit.--Section 38(b), as
amended by the Transportation Equity Act: A Legacy for Users,
is amended by striking ``plus'' at the end of paragraph (19),
by striking the period at the end of paragraph (20) and
inserting ``, plus'', and by adding at the end the following:
``(21) the advanced nuclear power facility
production credit determined under section 45J(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1 is amended by adding
at the end the following:
``Sec. 45J. Credit for production from advanced nuclear power
facilities.''.
(d) Effective Date.--The amendments made by this section
shall apply to production in taxable years beginning after the
date of the enactment of this Act.
SEC. 1307. CREDIT FOR INVESTMENT IN CLEAN COAL FACILITIES.
(a) In General.--Section 46 (relating to amount of credit)
is amended by striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2), and by adding
at the end the following new paragraphs:
``(3) the qualifying advanced coal project credit,
and
``(4) the qualifying gasification project
credit.''.
(b) Amount of Credits.--Subpart E of part IV of subchapter
A of chapter 1 (relating to rules for computing investment
credit) is amended by inserting after section 48 the following
new sections:
``SEC. 48A. QUALIFYING ADVANCED COAL PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the
qualifying advanced coal project credit for any taxable year is
an amount equal to--
``(1) 20 percent of the qualified investment for
such taxable year in the case of projects described in
subsection (d)(3)(B)(i), and
``(2) 15 percent of the qualified investment for
such taxable year in the case of projects described in
subsection (d)(3)(B)(ii).
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a),
the qualified investment for any taxable year is the
basis of eligible property placed in service by the
taxpayer during such taxable year which is part of a
qualifying advanced coal project--
``(A)(i) the construction, reconstruction,
or erection of which is completed by the
taxpayer, or
``(ii) which is acquired by the taxpayer if
the original use of such property commences
with the taxpayer, and
``(B) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable.
``(2) Special rule for certain subsidized
property.--Rules similar to section 48(a)(4) shall
apply for purposes of this section.
``(3) Certain qualified progress expenditures rules
made applicable.--Rules similar to the rules of
subsections (c)(4) and (d) of section 46 (as in effect
on the day before the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of
this section.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying advanced coal project.--The term
`qualifying advanced coal project' means a project
which meets the requirements of subsection (e).
``(2) Advanced coal-based generation technology.--
The term `advanced coal-based generation technology'
means a technology which meets the requirements of
subsection (f).
``(3) Eligible property.--The term `eligible
property' means--
``(A) in the case of any qualifying
advanced coal project using an integrated
gasification combined cycle, any property which
is a part of such project and is necessary for
the gasification of coal, including any coal
handling and gas separation equipment, and
``(B) in the case of any other qualifying
advanced coal project, any property which is a
part of such project.
``(4) Coal.--The term `coal' means anthracite,
bituminous coal, subbituminous coal, lignite, and peat.
``(5) Greenhouse gas capture capability.--The term
`greenhouse gas capture capability' means an integrated
gasification combined cycle technology facility capable
of adding components which can capture, separate on a
long-term basis, isolate, remove, and sequester
greenhouse gases which result from the generation of
electricity.
``(6) Electric generation unit.--The term `electric
generation unit' means any facility at least 50 percent
of the total annual net output of which is electrical
power, including an otherwise eligible facility which
is used in an industrial application.
``(7) Integrated gasification combined cycle.--The
term `integrated gasification combined cycle' means an
electric generation unit which produces electricity by
converting coal to synthesis gas which is used to fuel
a combined-cycle plant which produces electricity from
both a combustion turbine (including a combustion
turbine/fuel cell hybrid) and a steam turbine.
``(d) Qualifying Advanced Coal Project Program.--
``(1) Establishment.--Not later than 180 days after
the date of enactment of this section, the Secretary,
in consultation with the Secretary of Energy, shall
establish a qualifying advanced coal project program
for the deployment of advanced coal-based generation
technologies.
``(2) Certification.--
``(A) Application period.--Each applicant
for certification under this paragraph shall
submit an application meeting the requirements
of subparagraph (B). An applicant may only
submit an application during the 3-year period
beginning on the date the Secretary establishes
the program under paragraph (1).
``(B) Requirements for applications for
certification.--An application under
subparagraph (A) shall contain such information
as the Secretary may require in order to make a
determination to accept or reject an
application for certification as meeting the
requirements under subsection (e)(1). Any
information contained in the application shall
be protected as provided in section 552(b)(4)
of title 5, United States Code.
``(C) Time to act upon applications for
certification.--The Secretary shall issue a
determination as to whether an applicant has
met the requirements under subsection (e)(1)
within 60 days following the date of submittal
of the application for certification.
``(D) Time to meet criteria for
certification.--Each applicant for
certification shall have 2 years from the date
of acceptance by the Secretary of the
application during which to provide to the
Secretary evidence that the criteria set forth
in subsection (e)(2) have been met.
``(E) Period of issuance.--An applicant
which receives a certification shall have 5
years from the date of issuance of the
certification in order to place the project in
service and if such project is not placed in
service by that time period then the
certification shall no longer be valid.
``(3) Aggregate credits.--
``(A) In general.--The aggregate credits
allowed under subsection (a) for projects
certified by the Secretary under paragraph (2)
may not exceed $1,300,000,000.
``(B) Particular projects.--Of the dollar
amount in subparagraph (A), the Secretary is
authorized to certify--
``(i) $800,000,000 for integrated
gasification combined cycle projects,
and
``(ii) $500,000,000 for projects
which use other advanced coal-based
generation technologies.
``(4) Review and redistribution.--
``(A) Review.--Not later than 6 years after
the date of enactment of this section, the
Secretary shall review the credits allocated
under this section as of the date which is 6
years after the date of enactment of this
section.
``(B) Redistribution.--The Secretary may
reallocate credits available under clauses (i)
and (ii) of paragraph (3)(B) if the Secretary
determines that--
``(i) there is an insufficient
quantity of qualifying applications for
certification pending at the time of
the review, or
``(ii) any certification made
pursuant to subsection paragraph (2)
has been revoked pursuant to subsection
paragraph (2)(D) because the project
subject to the certification has been
delayed as a result of third party
opposition or litigation to the
proposed project.
``(C) Reallocation.--If the Secretary
determines that credits under clause (i) or
(ii) of paragraph (3)(B) are available for
reallocation pursuant to the requirements set
forth in paragraph (2), the Secretary is
authorized to conduct an additional program for
applications for certification.
``(e) Qualifying Advanced Coal Projects.--
``(1) Requirements.--For purposes of subsection
(c)(1), a project shall be considered a qualifying
advanced coal project that the Secretary may certify
under subsection (d)(2) if the Secretary determines
that, at a minimum--
``(A) the project uses an advanced coal-
based generation technology--
``(i) to power a new electric
generation unit, or
``(ii) to retrofit or repower an
existing electric generation unit
(including an existing natural gas-
fired combined cycle unit),
``(B) the fuel input for the project, when
completed, is at least 75 percent coal,
``(C) the project, consisting of one or
more electric generation units at one site,
will have a total nameplate generating capacity
of at least 400 megawatts;
``(D) the applicant provides evidence that
a majority of the output of the project is
reasonably expected to be acquired or utilized;
``(E) the applicant provides evidence of
ownership or control of a site of sufficient
size to allow the proposed project to be
constructed and to operate on a long-term
basis; and
``(F) the project will be located in the
United States.
``(2) Requirements for certification.--For the
purpose of subsection (d)(2)(D), a project shall be
eligible for certification only if the Secretary
determines that--
``(A) the applicant for certification has
received all Federal and State environmental
authorizations or reviews necessary to commence
construction of the project; and
``(B) the applicant for certification,
except in the case of a retrofit or repower of
an existing electric generation unit, has
purchased or entered into a binding contract
for the purchase of the main steam turbine or
turbines for the project, except that such
contract may be contingent upon receipt of a
certification under subsection (d)(2).
``(3) Priority for integrated gasification combined
cycle projects.--In determining which qualifying
advanced coal projects to certify under subsection
(d)(2), the Secretary shall--
``(A) certify capacity, in accordance with
the procedures set forth in subsection (d), in
relatively equal amounts to--
``(i) projects using bituminous
coal as a primary feedstock,
``(ii) projects using subbituminous
coal as a primary feedstock, and
``(iii) projects using lignite as a
primary feedstock, and
``(B) give high priority to projects which
include, as determined by the Secretary--
``(i) greenhouse gas capture
capability,
``(ii) increased by-product
utilization, and
``(iii) other benefits.
``(f) Advanced Coal-Based Generation Technology.--
``(1) In general.--For the purpose of this section,
an electric generation unit uses advanced coal-based
generation technology if--
``(A) the unit--
``(i) uses integrated gasification
combined cycle technology, or
``(ii) except as provided in
paragraph (3), has a design net heat
rate of 8530 Btu/kWh (40 percent
efficiency), and
``(B) the unit is designed to meet the
performance requirements in the following
table:
Performance characteristic: Design level for project:
SO2 (percent removal)................. 99 percent
NOX (emissions)....................... 0.07 lbs/MMBTU
PM* (emissions)....................... 0.015 lbs/MMBTU
Hg (percent removal).................. 90 percent
``(2) Design net heat rate.--For purposes of this
subsection, design net heat rate with respect to an
electric generation unit shall--
``(A) be measured in Btu per kilowatt hour
(higher heating value),
``(B) be based on the design annual heat
input to the unit and the rated net electrical
power, fuels, and chemicals output of the unit
(determined without regard to the cogeneration
of steam by the unit),
``(C) be adjusted for the heat content of
the design coal to be used by the unit--
``(i) if the heat content is less
than 13,500 Btu per pound, but greater
than 7,000 Btu per pound, according to
the following formula: design net heat
rate = unit net heat rate x [1-
[((13,500-design coal heat content, Btu
per pound)/1,000)* 0.013]], and
``(ii) if the heat content is less
than or equal to 7,000 Btu per pound,
according to the following formula:
design net heat rate = unit net heat
rate x [1-[((13,500-design coal heat
content, Btu per pound)/1,000)*
0.018]], and
``(D) be corrected for the site reference
conditions of--
``(i) elevation above sea level of
500 feet,
``(ii) air pressure of 14.4 pounds
per square inch absolute,
``(iii) temperature, dry bulb of
63/o/F,
``(iv) temperature, wet bulb of 54/
o/F, and
``(v) relative humidity of 55
percent.
``(3) Existing units.--In the case of any electric
generation unit in existence on the date of the
enactment of this section, such unit uses advanced
coal-based generation technology if, in lieu of the
requirements under paragraph (1)(A)(ii), such unit
achieves a minimum efficiency of 35 percent and an
overall thermal design efficiency improvement, compared
to the efficiency of the unit as operated, of not less
than--
``(A) 7 percentage points for coal of more
than 9,000 Btu,
``(B) 6 percentage points for coal of 7,000
to 9,000 Btu, or
``(C) 4 percentage points for coal of less
than 7,000 Btu.
``(g) Applicability.--No use of technology (or level of
emission reduction solely by reason of the use of the
technology), and no achievement of any emission reduction by
the demonstration of any technology or performance level, by or
at one or more facilities with respect to which a credit is
allowed under this section, shall be considered to indicate
that the technology or performance level is--
``(1) adequately demonstrated for purposes of
section 111 of the Clean Air Act (42 U.S.C. 7411);
``(2) achievable for purposes of section 169 of
that Act (42 U.S.C. 7479); or
``(3) achievable in practice for purposes of
section 171 of such Act (42 U.S.C. 7501).
``SEC. 48B. QUALIFYING GASIFICATION PROJECT CREDIT.
``(a) In General.--For purposes of section 46, the
qualifying gasification project credit for any taxable year is
an amount equal to 20 percent of the qualified investment for
such taxable year.
``(b) Qualified Investment.--
``(1) In general.--For purposes of subsection (a),
the qualified investment for any taxable year is the
basis of eligible property placed in service by the
taxpayer during such taxable year which is part of a
qualifying gasification project--
``(A)(i) the construction, reconstruction,
or erection of which is completed by the
taxpayer, or
``(ii) which is acquired by the taxpayer if
the original use of such property commences
with the taxpayer, and
``(B) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable.
``(2) Special rule for certain subsidized
property.--Rules similar to section 48(a)(4) shall
apply for purposes of this section.
``(3) Certain qualified progress expenditures rules
made applicable.--Rules similar to the rules of
subsections (c)(4) and (d) of section 46 (as in effect
on the day before the enactment of the Revenue
Reconciliation Act of 1990) shall apply for purposes of
this section.
``(c) Definitions.--For purposes of this section--
``(1) Qualifying gasification project.--The term
`qualifying gasification project' means any project
which--
``(A) employs gasification technology,
``(B) will be carried out by an eligible
entity, and
``(C) any portion of the qualified
investment of which is certified under the
qualifying gasification program as eligible for
credit under this section in an amount (not to
exceed $650,000,000) determined by the
Secretary.
``(2) Gasification technology.--The term
`gasification technology' means any process which
converts a solid or liquid product from coal, petroleum
residue, biomass, or other materials which are
recovered for their energy or feedstock value into a
synthesis gas composed primarily of carbon monoxide and
hydrogen for direct use or subsequent chemical or
physical conversion.
``(3) Eligible property.--The term `eligible
property' means any property which is a part of a
qualifying gasification project and is necessary for
the gasification technology of such project.
``(4) Biomass.--
``(A) In general.--The term `biomass' means
any--
``(i) agricultural or plant waste,
``(ii) byproduct of wood or paper
mill operations, including lignin in
spent pulping liquors, and
``(iii) other products of forestry
maintenance.
``(B) Exclusion.--The term `biomass' does
not include paper which is commonly recycled.
``(5) Carbon capture capability.--The term `carbon
capture capability' means a gasification plant design
which is determined by the Secretary to reflect
reasonable consideration for, and be capable of,
accommodating the equipment likely to be necessary to
capture carbon dioxide from the gaseous stream, for
later use or sequestration, which would otherwise be
emitted in the flue gas from a project which uses a
nonrenewable fuel.
``(6) Coal.--The term `coal' means anthracite,
bituminous coal, subbituminous coal, lignite, and peat.
``(7) Eligible entity.--The term `eligible entity'
means any person whose application for certification is
principally intended for use in a domestic project
which employs domestic gasification applications
related to--
``(A) chemicals,
``(B) fertilizers,
``(C) glass,
``(D) steel,
``(E) petroleum residues,
``(F) forest products, and
``(G) agriculture, including feedlots and
dairy operations.
``(8) Petroleum residue.--The term `petroleum
residue' means the carbonized product of high-boiling
hydrocarbon fractions obtained in petroleum processing.
``(d) Qualifying Gasification Project Program.--
``(1) In general.--Not later than 180 days after
the date of the enactment of this section, the
Secretary, in consultation with the Secretary of
Energy, shall establish a qualifying gasification
project program to consider and award certifications
for qualified investment eligible for credits under
this section to qualifying gasification project
sponsors under this section. The total amounts of
credit that may be allocated under the program shall
not exceed $350,000,000 under rules similar to the
rules of section 48A(d)(4).
``(2) Period of issuance.--A certificate of
eligibility under paragraph (1) may be issued only
during the 10-fiscal year period beginning on October
1, 2005.
``(3) Selection criteria.--The Secretary shall not
make a competitive certification award for qualified
investment for credit eligibility under this section
unless the recipient has documented to the satisfaction
of the Secretary that--
``(A) the award recipient is financially
viable without the receipt of additional
Federal funding associated with the proposed
project,
``(B) the recipient will provide sufficient
information to the Secretary for the Secretary
to ensure that the qualified investment is
spent efficiently and effectively,
``(C) a market exists for the products of
the proposed project as evidenced by contracts
or written statements of intent from potential
customers,
``(D) the fuels identified with respect to
the gasification technology for such project
will comprise at least 90 percent of the fuels
required by the project for the production of
chemical feedstocks, liquid transportation
fuels, or coproduction of electricity,
``(E) the award recipient's project team is
competent in the construction and operation of
the gasification technology proposed, with
preference given to those recipients with
experience which demonstrates successful and
reliable operations of the technology on
domestic fuels so identified, and
``(F) the award recipient has met other
criteria established and published by the
Secretary.
``(e) Denial of Double Benefit.--A credit shall not be
allowed under this section for any qualified investment for
which a credit is allowed under section 48A.''.
(c) Conforming Amendments.--
(1) Section 49(a)(1)(C) is amended by striking
``and'' at the end of clause (ii), by striking clause
(iii), and by adding after clause (ii) the following
new clauses:
``(iii) the basis of any property
which is part of a qualifying advanced
coal project under section 48A, and
``(iv) the basis of any property
which is part of a qualifying
gasification project under section
48B.''.
(2) The table of sections for subpart E of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 48 the following new
items:
``Sec. 48A. Qualifying advanced coal project credit.
``Sec. 48B. Qualifying gasification project credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to periods after the date of the enactment of this
Act, under rules similar to the rules of section 48(m) of the
Internal Revenue Code of 1986 (as in effect on the day before
the date of the enactment of the Revenue Reconciliation Act of
1990).
SEC. 1308. ELECTRIC TRANSMISSION PROPERTY TREATED AS 15-YEAR PROPERTY.
(a) In General.--Subparagraph (E) of section 168(e)(3)
(relating to classification of certain property) is amended by
striking ``and'' at the end of clause (v), by striking the
period at the end of clause (vi) and inserting ``, and'', and
by adding at the end the following new clause:
``(vii) any section 1245 property
(as defined in section 1245(a)(3)) used
in the transmission at 69 or more
kilovolts of electricity for sale and
the original use of which commences
with the taxpayer after April 11,
2005.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property
assigned to classes) is amended by inserting after the item
relating to subparagraph (E)(vi) the following new item:
``(E)(vii)........................................................ 30''.
(c) Effective Date.--
(1) In general.--The amendments made by this
section shall apply to property placed in service after
April 11, 2005.
(2) Exception.--The amendments made by this section
shall not apply to any property with respect to which
the taxpayer or a related party has entered into a
binding contract for the construction thereof on or
before April 11, 2005, or, in the case of self-
constructed property, has started construction on or
before such date.
SEC. 1309. EXPANSION OF AMORTIZATION FOR CERTAIN ATMOSPHERIC POLLUTION
CONTROL FACILITIES IN CONNECTION WITH PLANTS FIRST
PLACED IN SERVICE AFTER 1975.
(a) Eligibility of Post-1975 Pollution Control
Facilities.--Subsection (d) of section 169 (relating to
definitions) is amended by adding at the end the following:
``(5) Special rule relating to certain atmospheric
pollution control facilities.--In the case of any
atmospheric pollution control facility which is placed
in service after April 11, 2005, and used in connection
with an electric generation plant or other property
which is primarily coal fired--
``(A) paragraph (1) shall be applied
without regard to the phrase `in operation
before January 1, 1976', and
``(B) this section shall be applied by
substituting `84' for `60' each place it
appears in subsections (a) and (b).''.
(b) Treatment as New Identifiable Treatment Facility.--
Subparagraph (B) of section 169(d)(4) is amended to read as
follows:
``(B) Certain facilities placed in
operation after april 11, 2005.--In the case of
any facility described in paragraph (1) solely
by reason of paragraph (5), subparagraph (A)
shall be applied by substituting `April 11,
2005' for `December 31, 1968' each place it
appears therein.''.
(c) Conforming Amendment.--The heading for section 169(d)
is amended by inserting ``and Special Rules'' after
``Definitions''.
(d) Technical Amendment.--Section 169(d)(3) is amended by
striking ``Health, Education, and Welfare'' and inserting
``Health and Human Services''.
(e) Effective Date.--The amendments made by this section
shall apply to facilities placed in service after April 11,
2005.
SEC. 1310. MODIFICATIONS TO SPECIAL RULES FOR NUCLEAR DECOMMISSIONING
COSTS.
(a) Repeal of Limitation on Deposits Into Fund Based on
Cost of Service; Contributions After Funding Period.--
Subsection (b) of section 468A (relating to special rules for
nuclear decommissioning costs) is amended to read as follows:
``(b) Limitation on Amounts Paid Into Fund.--The amount
which a taxpayer may pay into the Fund for any taxable year
shall not exceed the ruling amount applicable to such taxable
year.''.
(b) Treatment of Certain Decommissioning Costs.--
(1) In general.--Section 468A is amended by
redesignating subsections (f) and (g) as subsections
(g) and (h), respectively, and by inserting after
subsection (e) the following new subsection:
``(f) Transfers Into Qualified Funds.--
``(1) In general.--Notwithstanding subsection (b),
any taxpayer maintaining a Fund to which this section
applies with respect to a nuclear power plant may
transfer into such Fund not more than an amount equal
to the present value of the portion of the total
nuclear decommissioning costs with respect to such
nuclear power plant previously excluded for such
nuclear power plant under subsection (d)(2)(A) as in
effect immediately before the date of the enactment of
this subsection.
``(2) Deduction for amounts transferred.--
``(A) In general.--Except as provided in
subparagraph (C), the deduction allowed by
subsection (a) for any transfer permitted by
this subsection shall be allowed ratably over
the remaining estimated useful life (within the
meaning of subsection (d)(2)(A)) of the nuclear
power plant beginning with the taxable year
during which the transfer is made.
``(B) Denial of deduction for previously
deducted amounts.--No deduction shall be
allowed for any transfer under this subsection
of an amount for which a deduction was
previously allowed to the taxpayer (or a
predecessor) or a corresponding amount was not
included in gross income of the taxpayer (or a
predecessor). For purposes of the preceding
sentence, a ratable portion of each transfer
shall be treated as being from previously
deducted or excluded amounts to the extent
thereof.
``(C) Transfers of qualified funds.--If--
``(i) any transfer permitted by
this subsection is made to any Fund to
which this section applies, and
``(ii) such Fund is transferred
thereafter,
any deduction under this subsection for taxable
years ending after the date that such Fund is
transferred shall be allowed to the transferor
for the taxable year which includes such date.
``(D) Special rules.--
``(i) Gain or loss not recognized
on transfers to fund.--No gain or loss
shall be recognized on any transfer
described in paragraph (1).
``(ii) Transfers of appreciated
property to fund.--If appreciated
property is transferred in a transfer
described in paragraph (1), the amount
of the deduction shall not exceed the
adjusted basis of such property.
``(3) New ruling amount required.--Paragraph (1)
shall not apply to any transfer unless the taxpayer
requests from the Secretary a new schedule of ruling
amounts in connection with such transfer.
``(4) No basis in qualified funds.--Notwithstanding
any other provision of law, the taxpayer's basis in any
Fund to which this section applies shall not be
increased by reason of any transfer permitted by this
subsection.''.
(2) New ruling amount to take into account total
costs.--Subparagraph (A) of section 468A(d)(2)
(defining ruling amount) is amended to read as follows:
``(A) fund the total nuclear
decommissioning costs with respect to such
power plant over the estimated useful life of
such power plant, and''.
(c) New Ruling Amount Required Upon License Renewal.--
Paragraph (1) of section 468A(d) (relating to request required)
is amended by adding at the end the following new sentence:
``For purposes of the preceding sentence, the taxpayer shall
request a schedule of ruling amounts upon each renewal of the
operating license of the nuclear powerplant.''.
(d) Conforming Amendment.--Section 468A(e)(3) (relating to
review of amount) is amended by striking ``The Fund'' and
inserting ``Except as provided in subsection (f), the Fund''.
(e) Technical Amendments.--Section 468A(e)(2) (relating to
taxation of Fund) is amended--
(1) by striking ``rate set forth in subparagraph
(B)'' in subparagraph (A) and inserting ``rate of 20
percent'',
(2) by striking subparagraph (B), and
(3) by redesignating subparagraphs (C) and (D) as
subparagraphs (B) and (C), respectively.
(f) Effective Date.--The amendments made by this section
shall apply to taxable years beginning after December 31, 2005.
SEC. 1311. 5-YEAR NET OPERATING LOSS CARRYOVER FOR CERTAIN LOSSES.
Paragraph (1) of section 172(b) (relating to net operating
loss carrybacks and carryovers) is amended by adding at the end
the following new subparagraph:
``(I) Transmission property and pollution
control investment.--
``(i) In general.--At the election
of the taxpayer in any taxable year
ending after December 31, 2005, and
before January 1, 2009, in the case of
a net operating loss in a taxable year
ending after December 31, 2002, and
before January 1, 2006, there shall be
a net operating loss carryback to each
of the 5 years preceding the taxable
year of such loss to the extent that
such loss does not exceed 20 percent of
the sum of electric transmission
property capital expenditures and
pollution control facility capital
expenditures of the taxpayer for the
taxable year preceding the taxable year
in which such election is made.
``(ii) Limitations.--For purposes
of this subsection--
``(I) not more than one
election may be made under
clause (i) with respect to any
net operating loss in a taxable
year, and
``(II) an election may not
be made under clause (i) for
more than 1 taxable year
beginning in any calendar year.
``(iii) Coordination with ordering
rule.--For purposes of applying
subsection (b)(2), the portion of any
loss which is carried back 5 years by
reason of clause (i) shall be treated
in a manner similar to the manner in
which a specified liability loss is
treated.
``(iv) Application for
adjustment.--In the case of any portion
of a net operating loss to which an
election under clause (i) applies, an
application under section 6411(a) with
respect to such loss shall not fail to
be treated as timely filed if filed
within 24 months after the due date
specified under such section.
``(v) Special rules relating to
refund.--For purposes of a net
operating loss to which an election
under clause (i) applies, references in
sections 6501(h), 6511(d)(2)(A), and
6611(f)(1) to the taxable year in which
such net operating loss arises or
result in a net loss carryback shall be
treated as references to the taxable
year in which such election occurs.
``(vi) Definitions.--For purposes
of this subparagraph--
``(I) Electric transmission
property capital
expenditures.--The term
`electric transmission property
capital expenditures' means any
expenditure, chargeable to
capital account, made by the
taxpayer which is attributable
to electric transmission
property used by the taxpayer
in the transmission at 69 or
more kilovolts of electricity
for sale. Such term shall not
include any expenditure which
may be refunded or the purpose
of which may be modified at the
option of the taxpayer so as to
cease to be treated as an
expenditure within the meaning
of such term.
``(II) Pollution control
facility capital
expenditures.--The term
`pollution control facility
capital expenditures' means any
expenditure, chargeable to
capital account, made by an
electric utility company (as
defined in section 2(3) of the
Public Utility Holding Company
Act (15 U.S.C. 79b(3)), as in
effect on the day before the
date of the enactment of the
Energy Tax Incentives Act of
2005) which is attributable to
a facility which will qualify
as a certified pollution
control facility as determined
under section 169(d)(1) by
striking `before January 1,
1976,' and by substituting `an
identifiable' for `a new
identifiable'. Such term shall
not include any expenditure
which may be refunded or the
purpose of which may be
modified at the option of the
taxpayer so as to cease to be
treated as an expenditure
within the meaning of such
term.''.
Subtitle B--Domestic Fossil Fuel Security
SEC. 1321. EXTENSION OF CREDIT FOR PRODUCING FUEL FROM A
NONCONVENTIONAL SOURCE FOR FACILITIES PRODUCING
COKE OR COKE GAS.
(a) In General.--Section 29 (relating to credit for
producing fuel from a nonconventional source) is amended by
adding at the end the following new subsection:
``(h) Extension for Facilities Producing Coke or Coke
Gas.--Notwithstanding subsection (f)--
``(1) In general.--In the case of a facility for
producing coke or coke gas which was placed in service
before January 1, 1993, or after June 30, 1998, and
before January 1, 2010, this section shall apply with
respect to coke and coke gas produced in such facility
and sold during the period--
``(A) beginning on the later of January 1,
2006, or the date that such facility is placed
in service, and
``(B) ending on the date which is 4 years
after the date such period began.
``(2) Special rules.--In determining the amount of
credit allowable under this section solely by reason of
this subsection--
``(A) Daily limit.--The amount of qualified
fuels sold during any taxable year which may be
taken into account by reason of this subsection
with respect to any facility shall not exceed
an average barrel-of-oil equivalent of 4,000
barrels per day. Days before the date the
facility is placed in service shall not be
taken into account in determining such average.
``(B) Extension period to commence with
unadjusted credit amount.--For purposes of
applying subsection (b)(2) to the $3 amount in
subsection (a), in the case of fuels sold after
2005, subsection (d)(2)(B) shall be applied by
substituting `2004' for `1979'.
``(C) Denial of double benefit.--This
subsection shall not apply to any facility
producing qualified fuels for which a credit
was allowed under this section for the taxable
year or any preceding taxable year by reason of
subsection (g).''.
(b) Effective Date.--The amendment made by this section
shall apply to fuel produced and sold after December 31, 2005,
in taxable years ending after such date.
SEC. 1322. MODIFICATION OF CREDIT FOR PRODUCING FUEL FROM A
NONCONVENTIONAL SOURCE.
(a) Treatment as Business Credit.--
(1) Credit moved to subpart relating to business
related credits.--The Internal Revenue Code of 1986 is
amended by redesignating section 29 as section 45K and
by moving section 45K (as so redesignated) from subpart
B of part IV of subchapter A of chapter 1 to the end of
subpart D of part IV of subchapter A of chapter 1.
(2) Credit treated as business credit.--Section
38(b), as amended by this Act, is amended by striking
``plus'' at the end of paragraph (20), by striking the
period at the end of paragraph (21) and inserting ``,
plus'', and by adding at the end the following:
``(22) the nonconventional source production credit
determined under section 45K(a).''.
(3) Conforming amendments.--
(A) Section 30(b)(3)(A) is amended by
striking ``sections 27 and 29'' and inserting
``section 27''.
(B) Sections 43(b)(2), 45I(b)(2)(C)(i), and
613A(c)(6)(C) are each amended by striking
``section 29(d)(2)(C)'' and inserting ``section
45K(d)(2)(C)''.
(C) Section 45(e)(9), as added by this Act,
is amended--
(i) by striking ``section 29'' each
place it appears and inserting
``section 45K'', and
(ii) by inserting ``(or under
section 29, as in effect on the day
before the date of enactment of the
Energy Tax Incentives Act of 2005, for
any prior taxable year)'' before the
period at the end thereof.
(D) Section 45I is amended--
(i) in subsection (c)(2)(A) by
striking ``section 29(d)(5))'' and
inserting ``section 45K(d)(5))'', and
(ii) in subsection (d)(3) by
striking ``section 29'' both places it
appears and inserting ``section 45K''.
(E) Section 45K(a), as redesignated by
paragraph (1), is amended by striking ``There
shall be allowed as a credit against the tax
imposed by this chapter for the taxable year''
and inserting ``For purposes of section 38, if
the taxpayer elects to have this section apply,
the nonconventional source production credit
determined under this section for the taxable
year is''.
(F) Section 45K(b), as so redesignated, is
amended by striking paragraph (6).
(G) Section 53(d)(1)(B)(iii) is amended by
striking ``under section 29'' and all that
follows through ``or not allowed''.
(H) Section 55(c)(3) is amended by striking
``29(b)(6),''.
(I) Subsection (a) of section 772 is
amended by inserting ``and'' at the end of
paragraph (9), by striking paragraph (10), and
by redesignating paragraph (11) as paragraph
(10).
(J) Paragraph (5) of section 772(d) is
amended by striking ``the foreign tax credit,
and the credit allowable under section 29'' and
inserting ``and the foreign tax credit''.
(K) The table of sections for subpart B of
part IV of subchapter A of chapter 1 is amended
by striking the item relating to section 29.
(L) The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amended
by inserting after the item relating to section
45I the following new item:
``Sec. 45K. Credit for producing fuel from a nonconventional source.''.
(b) Amendments Conforming to the Repeal of the Natural Gas
Policy Act of 1978.--
(1) In general.--Section 29(c)(2)(A) (before
redesignation under subsection (a) and as amended by
section 1321) is amended--
(A) by inserting ``(as in effect before the
repeal of such section)'' after ``1978'', and
(B) by striking subsection (e) and
redesignating subsections (f), (g), and (h) as
subsections (e), (f), and (g), respectively.
(2) Conforming amendments.--Section 29(g)(1)
(before redesignation under subsection (a) and
paragraph (1) of this subsection) is amended--
(A) in subparagraph (A) by striking
``subsection (f)(1)(B)'' and inserting
``subsection (e)(1)(B)'', and
(B) in subparagraph (B) by striking
``subsection (f)'' and inserting ``subsection
(e)''.
(c) Effective Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall apply to
credits determined under the Internal Revenue Code of
1986 for taxable years ending after December 31, 2005.
(2) Subsection (b).--The amendments made by
subsection (b) shall take effect on the date of the
enactment of this Act.
SEC. 1323. TEMPORARY EXPENSING FOR EQUIPMENT USED IN REFINING OF LIQUID
FUELS.
(a) In General.--Part VI of subchapter B of chapter 1 is
amended by inserting after section 179B the following new
section:
``SEC. 179C. ELECTION TO EXPENSE CERTAIN REFINERIES.
``(a) Treatment as Expenses.--A taxpayer may elect to treat
50 percent of the cost of any qualified refinery property as an
expense which is not chargeable to capital account. Any cost so
treated shall be allowed as a deduction for the taxable year in
which the qualified refinery property is placed in service.
``(b) Election.--
``(1) In general.--An election under this section
for any taxable year shall be made on the taxpayer's
return of the tax imposed by this chapter for the
taxable year. Such election shall be made in such
manner as the Secretary may by regulations prescribe.
``(2) Election irrevocable.--Any election made
under this section may not be revoked except with the
consent of the Secretary.
``(c) Qualified Refinery Property.--
``(1) In general.--The term `qualified refinery
property' means any portion of a qualified refinery--
``(A) the original use of which commences
with the taxpayer,
``(B) which is placed in service by the
taxpayer after the date of the enactment of
this section and before January 1, 2012,
``(C) in the case any portion of a
qualified refinery (other than a qualified
refinery which is separate from any existing
refinery), which meets the requirements of
subsection (e),
``(D) which meets all applicable
environmental laws in effect on the date such
portion was placed in service,
``(E) no written binding contract for the
construction of which was in effect on or
before June 14, 2005, and
``(F)(i) the construction of which is
subject to a written binding construction
contract entered into before January 1, 2008,
``(ii) which is placed in service before
January 1, 2008, or
``(iii) in the case of self-constructed
property, the construction of which began after
June 14, 2005, and before January 1, 2008.
``(2) Special rule for sale-leasebacks.--For
purposes of paragraph (1)(A), if property is--
``(A) originally placed in service after
the date of the enactment of this section by a
person, and
``(B) sold and leased back by such person
within 3 months after the date such property
was originally placed in service,
such property shall be treated as originally placed in
service not earlier than the date on which such
property is used under the leaseback referred to in
subparagraph (B).
``(3) Effect of waiver under clean air act.--A
waiver under the Clean Air Act shall not be taken into
account in determining whether the requirements of
paragraph (1)(D) are met.
``(d) Qualified Refinery.--For purposes of this section,
the term `qualified refinery' means any refinery located in the
United States which is designed to serve the primary purpose of
processing liquid fuel from crude oil or qualified fuels (as
defined in section 45K(c)).
``(e) Production Capacity.--The requirements of this
subsection are met if the portion of the qualified refinery--
``(1) enables the existing qualified refinery to
increase total volume output (determined without regard
to asphalt or lube oil) by 5 percent or more on an
average daily basis, or
``(2) enables the existing qualified refinery to
process qualified fuels (as defined in section 45K(c))
at a rate which is equal to or greater than 25 percent
of the total throughput of such qualified refinery on
an average daily basis.
``(f) Ineligible Refinery Property.--No deduction shall be
allowed under subsection (a) for any qualified refinery
property--
``(1) the primary purpose of which is for use as a
topping plant, asphalt plant, lube oil facility, crude
or product terminal, or blending facility, or
``(2) which is built solely to comply with consent
decrees or projects mandated by Federal, State, or
local governments.
``(g) Election to Allocate Deduction to Cooperative
Owner.--
``(1) In general.--If--
``(A) a taxpayer to which subsection (a)
applies is an organization to which part I of
subchapter T applies, and
``(B) one or more persons directly holding
an ownership interest in the taxpayer are
organizations to which part I of subchapter T
apply,
the taxpayer may elect to allocate all or a portion of
the deduction allowable under subsection (a) to such
persons. Such allocation shall be equal to the person's
ratable share of the total amount allocated, determined
on the basis of the person's ownership interest in the
taxpayer. The taxable income of the taxpayer shall not
be reduced under section 1382 by reason of any amount
to which the preceding sentence applies.
``(2) Form and effect of election.--An election
under paragraph (1) for any taxable year shall be made
on a timely filed return for such year. Such election,
once made, shall be irrevocable for such taxable year.
``(3) Written notice to owners.--If any portion of
the deduction available under subsection (a) is
allocated to owners under paragraph (1), the
cooperative shall provide any owner receiving an
allocation written notice of the amount of the
allocation. Such notice shall be provided before the
date on which the return described in paragraph (2) is
due.
``(h) Reporting.--No deduction shall be allowed under
subsection (a) to any taxpayer for any taxable year unless such
taxpayer files with the Secretary a report containing such
information with respect to the operation of the refineries of
the taxpayer as the Secretary shall require.''.
(b) Conforming Amendments.--
(1) Section 1245(a) is amended by inserting
``179C,'' after ``179B,'' both places it appears in
paragraphs (2)(C) and (3)(C).
(2) Section 263(a)(1) is amended by striking ``or''
at the end of subparagraph (H), by striking the period
at the end of subparagraph (I) and inserting ``, or'',
and by inserting after subparagraph (I) the following
new subparagraph:
``(J) expenditures for which a deduction is
allowed under section 179C.''.
(3) Section 312(k)(3)(B) is amended by striking
``179 179A, or 179B'' each place it appears in the
heading and text and inserting ``179, 179A, 179B, or
179C''.
(4) The table of sections for part VI of subchapter
B of chapter 1 is amended by inserting after the item
relating to section 179B the following new item:
``Sec. 179C. Election to expense certain refineries.''.
(c) Effective Date.--The amendments made by this section
shall apply to properties placed in service after the date of
the enactment of this Act.
SEC. 1324. PASS THROUGH TO OWNERS OF DEDUCTION FOR CAPITAL COSTS
INCURRED BY SMALL REFINER COOPERATIVES IN COMPLYING
WITH ENVIRONMENTAL PROTECTION AGENCY SULFUR
REGULATIONS.
(a) In General.--Section 179B (relating to deduction for
capital costs incurred in complying with Environmental
Protection Agency sulfur regulations) is amended by adding at
the end the following new subsection:
``(e) Election to Allocate Deduction to Cooperative
Owner.--
``(1) In general.--If--
``(A) a small business refiner to which
subsection (a) applies is an organization to
which part I of subchapter T applies, and
``(B) one or more persons directly holding
an ownership interest in the refiner are
organizations to which part I of subchapter T
apply,
the refiner may elect to allocate all or a portion of
the deduction allowable under subsection (a) to such
persons. Such allocation shall be equal to the person's
ratable share of the total amount allocated, determined
on the basis of the person's ownership interest in the
taxpayer. The taxable income of the refiner shall not
be reduced under section 1382 by reason of any amount
to which the preceding sentence applies.
``(2) Form and effect of election.--An election
under paragraph (1) for any taxable year shall be made
on a timely filed return for such year. Such election,
once made, shall be irrevocable for such taxable year.
``(3) Written notice to owners.--If any portion of
the deduction available under subsection (a) is
allocated to owners under paragraph (1), the
cooperative shall provide any owner receiving an
allocation written notice of the amount of the
allocation. Such notice shall be provided before the
date on which the return described in paragraph (2) is
due.''.
(b) Effective Date.--The amendment made by this section
shall take effect as if included in the amendment made by
section 338(a) of the American Jobs Creation Act of 2004.
SEC. 1325. NATURAL GAS DISTRIBUTION LINES TREATED AS 15-YEAR PROPERTY.
(a) In General.--Section 168(e)(3)(E) (defining 15-year
property), as amended by this Act, is amended by striking
``and'' at the end of clause (vi), by striking the period at
the end of clause (vii) and by inserting ``, and'', and by
adding at the end the following new clause:
``(viii) any natural gas
distribution line the original use of
which commences with the taxpayer after
April 11, 2005, and which is placed in
service before January 1, 2011.''.
(b) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property
assigned to classes), as amended by this Act, is amended by
inserting after the item relating to subparagraph (E)(vii) the
following new item:
``(E)(viii)....................................................... 35''.
(c) Effective Date.--
(1) In general.--The amendments made by this
section shall apply to property placed in service after
April 11, 2005.
(2) Exception.--The amendments made by this section
shall not apply to any property with respect to which
the taxpayer or a related party has entered into a
binding contract for the construction thereof on or
before April 11, 2005, or, in the case of self-
constructed property, has started construction on or
before such date.
SEC. 1326. NATURAL GAS GATHERING LINES TREATED AS 7-YEAR PROPERTY.
(a) In General.--Subparagraph (C) of section 168(e)(3)
(relating to classification of certain property) is amended by
striking ``and'' at the end of clause (iii), by redesignating
clause (iv) as clause (v), and by inserting after clause (iii)
the following new clause:
``(iv) any natural gas gathering
line the original use of which
commences with the taxpayer after April
11, 2005, and''.
(b) Natural Gas Gathering Line.--Subsection (i) of section
168 is amended by inserting after paragraph (16) the following
new paragraph:
``(17) Natural gas gathering line.--The term
`natural gas gathering line' means--
``(A) the pipe, equipment, and
appurtenances determined to be a gathering line
by the Federal Energy Regulatory Commission,
and
``(B) the pipe, equipment, and
appurtenances used to deliver natural gas from
the wellhead or a commonpoint to the point at
which such gas first reaches--
``(i) a gas processing plant,
``(ii) an interconnection with a
transmission pipeline for which a
certificate as an interstate
transmission pipeline has been issued
by the Federal Energy Regulatory
Commission,
``(iii) an interconnection with an
intrastate transmission pipeline, or
``(iv) a direct interconnection
with a local distribution company, a
gas storage facility, or an industrial
consumer.''.
(c) Alternative System.--The table contained in section
168(g)(3)(B) (relating to special rule for certain property
assigned to classes), as amended by this Act, is amended by
inserting after the item relating to subparagraph (C)(iii) the
following new item:
``(C)(iv)......................................................... 14''.
(d) Alternative Minimum Tax Exception.--Subparagraph (B) of
section 56(a)(1) is amended by inserting before the period the
following: ``, or in section 168(e)(3)(C)(iv)''.
(e) Effective Date.--
(1) In general.--The amendments made by this
section shall apply to property placed in service after
April 11, 2005.
(2) Exception.--The amendments made by this section
shall not apply to any property with respect to which
the taxpayer or a related party has entered into a
binding contract for the construction thereof on or
before April 11, 2005, or, in the case of self-
constructed property, has started construction on or
before such date.
SEC. 1327. ARBITRAGE RULES NOT TO APPLY TO PREPAYMENTS FOR NATURAL GAS.
(a) In General.--Subsection (b) of section 148 (relating to
higher yielding investments) is amended by adding at the end
the following new paragraph:
``(4) Safe harbor for prepaid natural gas.--
``(A) In general.--The term `investment-
type property' does not include a prepayment
under a qualified natural gas supply contract.
``(B) Qualified natural gas supply
contract.--For purposes of this paragraph, the
term `qualified natural gas supply contract'
means any contract to acquire natural gas for
resale by a utility owned by a governmental
unit if the amount of gas permitted to be
acquired under the contract by the utility
during any year does not exceed the sum of--
``(i) the annual average amount
during the testing period of natural
gas purchased (other than for resale)
by customers of such utility who are
located within the service area of such
utility, and
``(ii) the amount of natural gas to
be used to transport the prepaid
natural gas to the utility during such
year.
``(C) Natural gas used to generate
electricity.--Natural gas used to generate
electricity shall be taken into account in
determining the average under subparagraph
(B)(i)--
``(i) only if the electricity is
generated by a utility owned by a
governmental unit, and
``(ii) only to the extent that the
electricity is sold (other than for
resale) to customers of such utility
who are located within the service area
of such utility.
``(D) Adjustments for changes in customer
base.--
``(i) New business customers.--If--
``(I) after the close of
the testing period and before
the date of issuance of the
issue, the utility owned by a
governmental unit enters into a
contract to supply natural gas
(other than for resale) for a
business use at a property
within the service area of such
utility, and
``(II) the utility did not
supply natural gas to such
property during the testing
period or the ratable amount of
natural gas to be supplied
under the contract is
significantly greater than the
ratable amount of gas supplied
to such property during the
testing period,
then a contract shall not fail to be
treated as a qualified natural gas
supply contract by reason of supplying
the additional natural gas under the
contract referred to in subclause (I).
``(ii) Lost customers.--The average
under subparagraph (B)(i) shall not
exceed the annual amount of natural gas
reasonably expected to be purchased
(other than for resale) by persons who
are located within the service area of
such utility and who, as of the date of
issuance of the issue, are customers of
such utility.
``(E) Ruling requests.--The Secretary may
increase the average under subparagraph (B)(i)
for any period if the utility owned by the
governmental unit establishes to the
satisfaction of the Secretary that, based on
objective evidence of growth in natural gas
consumption or population, such average would
otherwise be insufficient for such period.
``(F) Adjustment for natural gas otherwise
on hand.--
``(i) In general.--The amount
otherwise permitted to be acquired
under the contract for any period shall
be reduced by--
``(I) the applicable share
of natural gas held by the
utility on the date of issuance
of the issue, and
``(II) the natural gas (not
taken into account under
subclause (I)) which the
utility has a right to acquire
during such period (determined
as of the date of issuance of
the issue).
``(ii) Applicable share.--For
purposes of the clause (i), the term
`applicable share' means, with respect
to any period, the natural gas
allocable to such period if the gas
were allocated ratably over the period
to which the prepayment relates.
``(G) Intentional acts.--Subparagraph (A)
shall cease to apply to any issue if the
utility owned by the governmental unit engages
in any intentional act to render the volume of
natural gas acquired by such prepayment to be
in excess of the sum of--
``(i) the amount of natural gas
needed (other than for resale) by
customers of such utility who are
located within the service area of such
utility, and
``(ii) the amount of natural gas
used to transport such natural gas to
the utility.
``(H) Testing period.--For purposes of this
paragraph, the term `testing period' means,
with respect to an issue, the most recent 5
calendar years ending before the date of
issuance of the issue.
``(I) Service area.--For purposes of this
paragraph, the service area of a utility owned
by a governmental unit shall be comprised of--
``(i) any area throughout which
such utility provided at all times
during the testing period--
``(I) in the case of a
natural gas utility, natural
gas transmission or
distribution services, and
``(II) in the case of an
electric utility, electricity
distribution services,
``(ii) any area within a county
contiguous to the area described in
clause (i) in which retail customers of
such utility are located if such area
is not also served by another utility
providing natural gas or electricity
services, as the case may be, and
``(iii) any area recognized as the
service area of such utility under
State or Federal law.''.
(b) Private Loan Financing Test Not to Apply to Prepayments
for Natural Gas.--Paragraph (2) of section 141(c) (providing
exceptions to the private loan financing test) is amended by
striking ``or'' at the end of subparagraph (A), by striking the
period at the end of subparagraph (B) and inserting ``, or'',
and by adding at the end the following new subparagraph:
``(C) is a qualified natural gas supply
contract (as defined in section 148(b)(4)).''.
(c) Exception for Qualified Electric and Natural Gas Supply
Contracts.--Section 141(d) is amended by adding at the end the
following new paragraph:
``(7) Exception for qualified electric and natural
gas supply contracts.--The term `nongovernmental output
property' shall not include any contract for the
prepayment of electricity or natural gas which is not
investment property under section 148(b)(2).''.
(d) Effective Date.--The amendments made by this section
shall apply to obligations issued after the date of the
enactment of this Act.
SEC. 1328. DETERMINATION OF SMALL REFINER EXCEPTION TO OIL DEPLETION
DEDUCTION.
(a) In General.--Paragraph (4) of section 613A(d) (relating
to limitations on application of subsection (c)) is amended to
read as follows:
``(4) Certain refiners excluded.--If the taxpayer
or 1 or more related persons engages in the refining of
crude oil, subsection (c) shall not apply to the
taxpayer for a taxable year if the average daily
refinery runs of the taxpayer and such persons for the
taxable year exceed 75,000 barrels. For purposes of
this paragraph, the average daily refinery runs for any
taxable year shall be determined by dividing the
aggregate refinery runs for the taxable year by the
number of days in the taxable year.''.
(b) Effective Date.--The amendment made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 1329. AMORTIZATION OF GEOLOGICAL AND GEOPHYSICAL EXPENDITURES.
(a) In General.--Section 167 (relating to depreciation) is
amended by redesignating subsection (h) as subsection (i) and
by inserting after subsection (g) the following new subsection:
``(h) Amortization of Geological and Geophysical
Expenditures.--
``(1) In general.--Any geological and geophysical
expenses paid or incurred in connection with the
exploration for, or development of, oil or gas within
the United States (as defined in section 638) shall be
allowed as a deduction ratably over the 24-month period
beginning on the date that such expense was paid or
incurred.
``(2) Half-year convention.--For purposes of
paragraph (1), any payment paid or incurred during the
taxable year shall be treated as paid or incurred on
the mid-point of such taxable year.
``(3) Exclusive method.--Except as provided in this
subsection, no depreciation or amortization deduction
shall be allowed with respect to such payments.
``(4) Treatment upon abandonment.--If any property
with respect to which geological and geophysical
expenses are paid or incurred is retired or abandoned
during the 24-month period described in paragraph (1),
no deduction shall be allowed on account of such
retirement or abandonment and the amortization
deduction under this subsection shall continue with
respect to such payment.''.
(b) Conforming Amendment.--Section 263A(c)(3) is amended by
inserting ``167(h),'' after ``under section''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred in taxable years
beginning after the date of the enactment of this Act.
Subtitle C--Conservation and Energy Efficiency Provisions
SEC. 1331. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
(a) In General.--Part VI of subchapter B of chapter 1
(relating to itemized deductions for individuals and
corporations), as amended by this Act, is amended by inserting
after section 179C the following new section:
``SEC. 179D. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION.
``(a) In General.--There shall be allowed as a deduction an
amount equal to the cost of energy efficient commercial
building property placed in service during the taxable year.
``(b) Maximum Amount of Deduction.--The deduction under
subsection (a) with respect to any building for any taxable
year shall not exceed the excess (if any) of--
``(1) the product of--
``(A) $1.80, and
``(B) the square footage of the building,
over
``(2) the aggregate amount of the deductions under
subsection (a) with respect to the building for all
prior taxable years.
``(c) Definitions.--For purposes of this section--
``(1) Energy efficient commercial building
property.--The term `energy efficient commercial
building property' means property--
``(A) with respect to which depreciation
(or amortization in lieu of depreciation) is
allowable,
``(B) which is installed on or in any
building which is--
``(i) located in the United States,
and
``(ii) within the scope of Standard
90.1-2001,
``(C) which is installed as part of--
``(i) the interior lighting
systems,
``(ii) the heating, cooling,
ventilation, and hot water systems, or
``(iii) the building envelope, and
``(D) which is certified in accordance with
subsection (d)(6) as being installed as part of
a plan designed to reduce the total annual
energy and power costs with respect to the
interior lighting systems, heating, cooling,
ventilation, and hot water systems of the
building by 50 percent or more in comparison to
a reference building which meets the minimum
requirements of Standard 90.1-2001 using
methods of calculation under subsection (d)(2).
``(2) Standard 90.1-2001.--The term `Standard 90.1-
2001' means Standard 90.1-2001 of the American Society
of Heating, Refrigerating, and Air Conditioning
Engineers and the Illuminating Engineering Society of
North America (as in effect on April 2, 2003).
``(d) Special Rules.--
``(1) Partial allowance.--
``(A) In general.--Except as provided in
subsection (f), if--
``(i) the requirement of subsection
(c)(1)(D) is not met, but
``(ii) there is a certification in
accordance with paragraph (6) that any
system referred to in subsection
(c)(1)(C) satisfies the energy-savings
targets established by the Secretary
under subparagraph (B) with respect to
such system,
then the requirement of subsection (c)(1)(D)
shall be treated as met with respect to such
system, and the deduction under subsection (a)
shall be allowed with respect to energy
efficient commercial building property
installed as part of such system and as part of
a plan to meet such targets, except that
subsection (b) shall be applied to such
property by substituting `$.60' for `$1.80'.
``(B) Regulations.--The Secretary, after
consultation with the Secretary of Energy,
shall establish a target for each system
described in subsection (c)(1)(C) which, if
such targets were met for all such systems, the
building would meet the requirements of
subsection (c)(1)(D).
``(2) Methods of calculation.--The Secretary, after
consultation with the Secretary of Energy, shall
promulgate regulations which describe in detail methods
for calculating and verifying energy and power
consumption and cost, based on the provisions of the
2005 California Nonresidential Alternative Calculation
Method Approval Manual.
``(3) Computer software.--
``(A) In general.--Any calculation under
paragraph (2) shall be prepared by qualified
computer software.
``(B) Qualified computer software.--For
purposes of this paragraph, the term `qualified
computer software' means software--
``(i) for which the software
designer has certified that the
software meets all procedures and
detailed methods for calculating energy
and power consumption and costs as
required by the Secretary,
``(ii) which provides such forms as
required to be filed by the Secretary
in connection with energy efficiency of
property and the deduction allowed
under this section, and
``(iii) which provides a notice
form which documents the energy
efficiency features of the building and
its projected annual energy costs.
``(4) Allocation of deduction for public
property.--In the case of energy efficient commercial
building property installed on or in property owned by
a Federal, State, or local government or a political
subdivision thereof, the Secretary shall promulgate a
regulation to allow the allocation of the deduction to
the person primarily responsible for designing the
property in lieu of the owner of such property. Such
person shall be treated as the taxpayer for purposes of
this section.
``(5) Notice to owner.--Each certification required
under this section shall include an explanation to the
building owner regarding the energy efficiency features
of the building and its projected annual energy costs
as provided in the notice under paragraph (3)(B)(iii).
``(6) Certification.--
``(A) In general.--The Secretary shall
prescribe the manner and method for the making
of certifications under this section.
``(B) Procedures.--The Secretary shall
include as part of the certification process
procedures for inspection and testing by
qualified individuals described in subparagraph
(C) to ensure compliance of buildings with
energy-savings plans and targets. Such
procedures shall be comparable, given the
difference between commercial and residential
buildings, to the requirements in the Mortgage
Industry National Accreditation Procedures for
Home Energy Rating Systems.
``(C) Qualified individuals.--Individuals
qualified to determine compliance shall be only
those individuals who are recognized by an
organization certified by the Secretary for
such purposes.
``(e) Basis Reduction.--For purposes of this subtitle, if a
deduction is allowed under this section with respect to any
energy efficient commercial building property, the basis of
such property shall be reduced by the amount of the deduction
so allowed.
``(f) Interim Rules for Lighting Systems.--Until such time
as the Secretary issues final regulations under subsection
(d)(1)(B) with respect to property which is part of a lighting
system--
``(1) In general.--The lighting system target under
subsection (d)(1)(A)(ii) shall be a reduction in
lighting power density of 25 percent (50 percent in the
case of a warehouse) of the minimum requirements in
Table 9.3.1.1 or Table 9.3.1.2 (not including
additional interior lighting power allowances) of
Standard 90.1-2001.
``(2) Reduction in deduction if reduction less than
40 percent.--
``(A) In general.--If, with respect to the
lighting system of any building other than a
warehouse, the reduction in lighting power
density of the lighting system is not at least
40 percent, only the applicable percentage of
the amount of deduction otherwise allowable
under this section with respect to such
property shall be allowed.
``(B) Applicable percentage.--For purposes
of subparagraph (A), the applicable percentage
is the number of percentage points (not greater
than 100) equal to the sum of--
``(i) 50, and
``(ii) the amount which bears the
same ratio to 50 as the excess of the
reduction of lighting power density of
the lighting system over 25 percentage
points bears to 15.
``(C) Exceptions.--This subsection shall
not apply to any system--
``(i) the controls and circuiting
of which do not comply fully with the
mandatory and prescriptive requirements
of Standard 90.1-2001 and which do not
include provision for bilevel switching
in all occupancies except hotel and
motel guest rooms, store rooms,
restrooms, and public lobbies, or
``(ii) which does not meet the
minimum requirements for calculated
lighting levels as set forth in the
Illuminating Engineering Society of
North America Lighting Handbook,
Performance and Application, Ninth
Edition, 2000.
``(g) Regulations.--The Secretary shall promulgate such
regulations as necessary--
``(1) to take into account new technologies
regarding energy efficiency and renewable energy for
purposes of determining energy efficiency and savings
under this section, and
``(2) to provide for a recapture of the deduction
allowed under this section if the plan described in
subsection (c)(1)(D) or (d)(1)(A) is not fully
implemented.
``(h) Termination.--This section shall not apply with
respect to property placed in service after December 31,
2007.''.
(b) Conforming Amendments.--
(1) Section 1016(a) is amended by striking ``and''
at the end of paragraph (30), by striking the period at
the end of paragraph (31) and inserting ``, and'', and
by adding at the end the following new paragraph:
``(32) to the extent provided in section
179D(e).''.
(2) Section 1245(a), as amended by this Act, is
amended by inserting ``179D,'' after ``179C,'' both
places it appears in paragraphs (2)(C) and (3)(C).
(3) Section 1250(b)(3) is amended by inserting
before the period at the end of the first sentence ``or
by section 179D''.
(4) Section 263(a)(1), as amended by this Act, is
amended by striking ``or'' at the end of subparagraph
(I), by striking the period at the end of subparagraph
(J) and inserting ``, or'', and by inserting after
subparagraph (J) the following new subparagraph:
``(K) expenditures for which a deduction is
allowed under section 179D.''.
(5) Section 312(k)(3)(B), as amended by this Act,
is amended by striking ``179, 179A, 179B, or 179C''
each place it appears in the heading and text and
inserting ``179, 179A, 179B, 179C, or 179D''.
(c) Clerical Amendment.--The table of sections for part VI
of subchapter B of chapter 1, as amended by this Act, is
amended by inserting after section 179C the following new item:
``Sec. 179D. Energy efficient commercial buildings deduction.''.
(d) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2005.
SEC. 1332. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT HOMES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business related credits), as amended by
this Act, is amended by adding at the end the following new
section:
``SEC. 45L. NEW ENERGY EFFICIENT HOME CREDIT.
``(a) Allowance of Credit.--
``(1) In general.--For purposes of section 38, in
the case of an eligible contractor, the new energy
efficient home credit for the taxable year is the
applicable amount for each qualified new energy
efficient home which is--
``(A) constructed by the eligible
contractor, and
``(B) acquired by a person from such
eligible contractor for use as a residence
during the taxable year.
``(2) Applicable amount.--For purposes of paragraph
(1), the applicable amount is an amount equal to--
``(A) in the case of a dwelling unit
described in paragraph (1) or (2) of subsection
(c), $2,000, and
``(B) in the case of a dwelling unit
described in paragraph (3) of subsection (c),
$1,000.
``(b) Definitions.--For purposes of this section--
``(1) Eligible contractor.--The term `eligible
contractor' means--
``(A) the person who constructed the
qualified new energy efficient home, or
``(B) in the case of a qualified new energy
efficient home which is a manufactured home,
the manufactured home producer of such home.
``(2) Qualified new energy efficient home.--The
term `qualified new energy efficient home' means a
dwelling unit--
``(A) located in the United States,
``(B) the construction of which is
substantially completed after the date of the
enactment of this section, and
``(C) which meets the energy saving
requirements of subsection (c).
``(3) Construction.--The term `construction'
includes substantial reconstruction and rehabilitation.
``(4) Acquire.--The term `acquire' includes
purchase.
``(c) Energy Saving Requirements.--A dwelling unit meets
the energy saving requirements of this subsection if such unit
is--
``(1) certified--
``(A) to have a level of annual heating and
cooling energy consumption which is at least 50
percent below the annual level of heating and
cooling energy consumption of a comparable
dwelling unit--
``(i) which is constructed in
accordance with the standards of
chapter 4 of the 2003 International
Energy Conservation Code, as such Code
(including supplements) is in effect on
the date of the enactment of this
section, and
``(ii) for which the heating and
cooling equipment efficiencies
correspond to the minimum allowed under
the regulations established by the
Department of Energy pursuant to the
National Appliance Energy Conservation
Act of 1987 and in effect at the time
of completion of construction, and
``(B) to have building envelope component
improvements account for at least \1/5\ of such
50 percent,
``(2) a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards
(section 3280 of title 24, Code of Federal Regulations)
and which meets the requirements of paragraph (1), or
``(3) a manufactured home which conforms to Federal
Manufactured Home Construction and Safety Standards
(section 3280 of title 24, Code of Federal Regulations)
and which--
``(A) meets the requirements of paragraph
(1) applied by substituting `30 percent' for
`50 percent' both places it appears therein and
by substituting `\1/3\' for `\1/5\' in
subparagraph (B) thereof, or
``(B) meets the requirements established by
the Administrator of the Environmental
Protection Agency under the Energy Star Labeled
Homes program.
``(d) Certification.--
``(1) Method of certification.--A certification
described in subsection (c) shall be made in accordance
with guidance prescribed by the Secretary, after
consultation with the Secretary of Energy. Such
guidance shall specify procedures and methods for
calculating energy and cost savings.
``(2) Form.--Any certification described in
subsection (c) shall be made in writing in a manner
which specifies in readily verifiable fashion the
energy efficient building envelope components and
energy efficient heating or cooling equipment installed
and their respective rated energy efficiency
performance.
``(e) Basis Adjustment.--For purposes of this subtitle, if
a credit is allowed under this section in connection with any
expenditure for any property, the increase in the basis of such
property which would (but for this subsection) result from such
expenditure shall be reduced by the amount of the credit so
determined.
``(f) Coordination With Investment Credit.--For purposes of
this section, expenditures taken into account under section 47
or 48(a) shall not be taken into account under this section.
``(g) Termination.--This section shall not apply to any
qualified new energy efficient home acquired after December 31,
2007.''.
(b) Credit Made Part of General Business Credit.--Section
38(b) (relating to current year business credit), as amended by
this Act, is amended by striking ``plus'' at the end of
paragraph (21), by striking the period at the end of paragraph
(22) and inserting ``, plus'', and by adding at the end the
following new paragraph:
``(23) the new energy efficient home credit
determined under section 45L(a).''.
(c) Basis Adjustment.--Subsection (a) of section 1016, as
amended by this Act, is amended by striking ``and'' at the end
of paragraph (31), by striking the period at the end of
paragraph (32) and inserting ``, and'', and by adding at the
end the following new paragraph:
``(33) to the extent provided in section 45L(e), in
the case of amounts with respect to which a credit has
been allowed under section 45L.''.
(d) Deduction for Certain Unused Business Credits.--Section
196(c) (defining qualified business credits) is amended by
striking ``and'' at the end of paragraph (11), by striking the
period at the end of paragraph (12) and inserting ``, and'',
and by adding after paragraph (12) the following new paragraph:
``(13) the new energy efficient home credit
determined under section 45L(a).''.
(e) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following new item:
``Sec. 45L. New energy efficient home credit.''.
(f) Effective Date.--The amendments made by this section
shall apply to qualified new energy efficient homes acquired
after December 31, 2005, in taxable years ending after such
date.
SEC. 1333. CREDIT FOR CERTAIN NONBUSINESS ENERGY PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits) is
amended by inserting after section 25B the following new
section:
``SEC. 25C. NONBUSINESS ENERGY PROPERTY.
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the sum
of--
``(1) 10 percent of the amount paid or incurred by
the taxpayer for qualified energy efficiency
improvements installed during such taxable year, and
``(2) the amount of the residential energy property
expenditures paid or incurred by the taxpayer during
such taxable year.
``(b) Limitations.--
``(1) Lifetime limitation.--The credit allowed
under this section with respect to any taxpayer for any
taxable year shall not exceed the excess (if any) of
$500 over the aggregate credits allowed under this
section with respect to such taxpayer for all prior
taxable years.
``(2) Windows.--In the case of amounts paid or
incurred for components described in subsection
(c)(3)(B) by any taxpayer for any taxable year, the
credit allowed under this section with respect to such
amounts for such year shall not exceed the excess (if
any) of $200 over the aggregate credits allowed under
this section with respect to such amounts for all prior
taxable years.
``(3) Limitation on residential energy property
expenditures.--The amount of the credit allowed under
this section by reason of subsection (a)(2) shall not
exceed--
``(A) $50 for any advanced main air
circulating fan,
``(B) $150 for any qualified natural gas,
propane, or oil furnace or hot water boiler,
and
``(C) $300 for any item of energy-efficient
building property.
``(c) Qualified Energy Efficiency Improvements.--For
purposes of this section--
``(1) In general.--The term `qualified energy
efficiency improvements' means any energy efficient
building envelope component which meets the
prescriptive criteria for such component established by
the 2000 International Energy Conservation Code, as
such Code (including supplements) is in effect on the
date of the enactment of this section (or, in the case
of a metal roof with appropriate pigmented coatings
which meet the Energy Star program requirements), if--
``(A) such component is installed in or on
a dwelling unit located in the United States
and owned and used by the taxpayer as the
taxpayer's principal residence (within the
meaning of section 121),
``(B) the original use of such component
commences with the taxpayer, and
``(C) such component reasonably can be
expected to remain in use for at least 5 years.
``(2) Building envelope component.--The term
`building envelope component' means--
``(A) any insulation material or system
which is specifically and primarily designed to
reduce the heat loss or gain of a dwelling unit
when installed in or on such dwelling unit,
``(B) exterior windows (including
skylights),
``(C) exterior doors, and
``(D) any metal roof installed on a
dwelling unit, but only if such roof has
appropriate pigmented coatings which are
specifically and primarily designed to reduce
the heat gain of such dwelling unit.
``(3) Manufactured homes included.--The term
`dwelling unit' includes a manufactured home which
conforms to Federal Manufactured Home Construction and
Safety Standards (section 3280 of title 24, Code of
Federal Regulations).
``(d) Residential Energy Property Expenditures.--For
purposes of this section--
``(1) In general.--The term `residential energy
property expenditures' means expenditures made by the
taxpayer for qualified energy property which is--
``(A) installed on or in connection with a
dwelling unit located in the United States and
owned and used by the taxpayer as the
taxpayer's principal residence (within the
meaning of section 121), and
``(B) originally placed in service by the
taxpayer.
Such term includes expenditures for labor costs
properly allocable to the onsite preparation, assembly,
or original installation of the property.
``(2) Qualified energy property.--
``(A) In general.--The term `qualified
energy property' means--
``(i) energy-efficient building
property,
``(ii) a qualified natural gas,
propane, or oil furnace or hot water
boiler, or
``(iii) an advanced main air
circulating fan.
``(B) Performance and quality standards.--
Property described under subparagraph (A) shall
meet the performance and quality standards, and
the certification requirements (if any),
which--
``(i) have been prescribed by the
Secretary by regulations (after
consultation with the Secretary of
Energy or the Administrator of the
Environmental Protection Agency, as
appropriate), and
``(ii) are in effect at the time of
the acquisition of the property, or at
the time of the completion of the
construction, reconstruction, or
erection of the property, as the case
may be.
``(C) Requirements for standards.--The
standards and requirements prescribed by the
Secretary under subparagraph (B)--
``(i) in the case of the energy
efficiency ratio (EER) for central air
conditioners and electric heat pumps--
``(I) shall require
measurements to be based on
published data which is tested
by manufacturers at 95 degrees
Fahrenheit, and
``(II) may be based on the
certified data of the Air
Conditioning and Refrigeration
Institute that are prepared in
partnership with the Consortium
for Energy Efficiency, and
``(ii) in the case of geothermal
heat pumps--
``(I) shall be based on
testing under the conditions of
ARI/ISO Standard 13256-1 for
Water Source Heat Pumps or ARI
870 for Direct Expansion
GeoExchange Heat Pumps (DX), as
appropriate, and
``(II) shall include
evidence that water heating
services have been provided
through a desuperheater or
integrated water heating system
connected to the storage water
heater tank.
``(3) Energy-efficient building property.--The term
`energy-efficient building property' means--
``(A) an electric heat pump water heater
which yields an energy factor of at least 2.0
in the standard Department of Energy test
procedure,
``(B) an electric heat pump which has a
heating seasonal performance factor (HSPF) of
at least 9, a seasonal energy efficiency ratio
(SEER) of at least 15, and an energy efficiency
ratio (EER) of at least 13,
``(C) a geothermal heat pump which--
``(i) in the case of a closed loop
product, has an energy efficiency ratio
(EER) of at least 14.1 and a heating
coefficient of performance (COP) of at
least 3.3,
``(ii) in the case of an open loop
product, has an energy efficiency ratio
(EER) of at least 16.2 and a heating
coefficient of performance (COP) of at
least 3.6, and
``(iii) in the case of a direct
expansion (DX) product, has an energy
efficiency ratio (EER) of at least 15
and a heating coefficient of
performance (COP) of at least 3.5,
``(D) a central air conditioner which
achieves the highest efficiency tier
established by the Consortium for Energy
Efficiency, as in effect on January 1, 2006,
and
``(E) a natural gas, propane, or oil water
heater which has an energy factor of at least
0.80.
``(4) Qualified natural gas, propane, or oil
furnace or hot water boiler.--The term `qualified
natural gas, propane, or oil furnace or hot water
boiler' means a natural gas, propane, or oil furnace or
hot water boiler which achieves an annual fuel
utilization efficiency rate of not less than 95.
``(5) Advanced main air circulating fan.--The term
`advanced main air circulating fan' means a fan used in
a natural gas, propane, or oil furnace and which has an
annual electricity use of no more than 2 percent of the
total annual energy use of the furnace (as determined
in the standard Department of Energy test procedures).
``(e) Special Rules.--For purposes of this section--
``(1) Application of rules.--Rules similar to the
rules under paragraphs (4), (5), (6), (7), (8), and (9)
of section 25D(e) shall apply.
``(2) Joint ownership of energy items.--
``(A) In general.--Any expenditure
otherwise qualifying as an expenditure under
this section shall not be treated as failing to
so qualify merely because such expenditure was
made with respect to 2 or more dwelling units.
``(B) Limits applied separately.--In the
case of any expenditure described in
subparagraph (A), the amount of the credit
allowable under subsection (a) shall (subject
to paragraph (1)) be computed separately with
respect to the amount of the expenditure made
for each dwelling unit.
``(f) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure with
respect to any property, the increase in the basis of such
property which would (but for this subsection) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(g) Termination.--This section shall not apply with
respect to any property placed in service after December 31,
2007.''.
(b) Conforming Amendments.--
(1) Subsection (a) of section 1016, as amended by
this Act, is amended by striking ``and'' at the end of
paragraph (32), by striking the period at the end of
paragraph (33) and inserting ``, and'', and by adding
at the end the following new paragraph:
``(34) to the extent provided in section 25C(e), in
the case of amounts with respect to which a credit has
been allowed under section 25C.''.
(2) The table of sections for subpart A of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 25B the following
new item:
``Sec. 25C. Nonbusiness energy property.''.
(c) Effective Dates.--The amendments made by this section
shall apply to property placed in service after December 31,
2005.
SEC. 1334. CREDIT FOR ENERGY EFFICIENT APPLIANCES.
(a) In General.--Subpart D of part IV of subchapter A of
chapter 1 (relating to business-related credits), as amended by
this Act, is amended by adding at the end the following new
section:
``SEC. 45M. ENERGY EFFICIENT APPLIANCE CREDIT.
``(a) General Rule.--
``(1) In general.--For purposes of section 38, the
energy efficient appliance credit determined under this
section for any taxable year is an amount equal to the
sum of the credit amounts determined under paragraph
(2) for each type of qualified energy efficient
appliance produced by the taxpayer during the calendar
year ending with or within the taxable year.
``(2) Credit amounts.--The credit amount determined
for any type of qualified energy efficient appliance
is--
``(A) the applicable amount determined
under subsection (b) with respect to such type,
multiplied by
``(B) the eligible production for such
type.
``(b) Applicable Amount.--
``(1) In general.--For purposes of subsection (a)--
``(A) Dishwashers.--The applicable amount
is the energy savings amount in the case of a
dishwasher which--
``(i) is manufactured in calendar
year 2006 or 2007, and
``(ii) meets the requirements of
the Energy Star program which are in
effect for dishwashers in 2007.
``(B) Clothes washers.--The applicable
amount is $100 in the case of a clothes washer
which--
``(i) is manufactured in calendar
year 2006 or 2007, and
``(ii) meets the requirements of
the Energy Star program which are in
effect for clothes washers in 2007.
``(C) Refrigerators.--
``(i) 15 percent savings.--The
applicable amount is $75 in the case of
a refrigerator which--
``(I) is manufactured in
calendar year 2006, and
``(II) consumes at least 15
percent but not more than 20
percent less kilowatt hours per
year than the 2001 energy
conservation standards.
``(ii) 20 percent savings.--The
applicable amount is $125 in the case
of a refrigerator which--
``(I) is manufactured in
calendar year 2006 or 2007, and
``(II) consumes at least 20
percent but not more than 25
percent less kilowatt hours per
year than the 2001 energy
conservation standards.
``(iii) 25 percent savings.--The
applicable amount is $175 in the case
of a refrigerator which--
``(I) is manufactured in
calendar year 2006 or 2007, and
``(II) consumes at least 25
percent less kilowatt hours per
year than the 2001 energy
conservation standards.
``(2) Energy savings amount.--For purposes of
paragraph (1)(A)--
``(A) In general.--The energy savings
amount is the lesser of--
``(i) the product of--
``(I) $3, and
``(II) 100 multiplied by
the energy savings percentage,
or
``(ii) $100.
``(B) Energy savings percentage.--For
purposes of subparagraph (A), the energy
savings percentage is the ratio of--
``(i) the EF required by the Energy
Star program for dishwashers in 2007
minus the EF required by the Energy
Star program for dishwashers in 2005,
to
``(ii) the EF required by the
Energy Star program for dishwashers in
2007.
``(c) Eligible Production.--
``(1) In general.--Except as provided in paragraphs
(2), the eligible production in a calendar year with
respect to each type of energy efficient appliance is
the excess of--
``(A) the number of appliances of such type
which are produced by the taxpayer in the
United States during such calendar year, over
``(B) the average number of appliances of
such type which were produced by the taxpayer
(or any predecessor) in the United States
during the preceding 3-calendar-year period.
``(2) Special rule for refrigerators.--The eligible
production in a calendar year with respect to each type
of refrigerator described in subsection (b)(1)(C) is
the excess of--
``(A) the number of appliances of such type
which are produced by the taxpayer in the
United States during such calendar year, over
``(B) 110 percent of the average number of
appliances of such type which were produced by
the taxpayer (or any predecessor) in the United
States during the preceding 3-calendar-year
period.
``(d) Types of Energy Efficient Appliance.--For purposes of
this section, the types of energy efficient appliances are--
``(1) dishwashers described in subsection
(b)(1)(A),
``(2) clothes washers described in subsection
(b)(1)(B),
``(3) refrigerators described in subsection
(b)(1)(C)(i),
``(4) refrigerators described in subsection
(b)(1)(C)(ii), and
``(5) refrigerators described in subsection
(b)(1)(C)(iii).
``(e) Limitations.--
``(1) Aggregate credit amount allowed.--The
aggregate amount of credit allowed under subsection (a)
with respect to a taxpayer for any taxable year shall
not exceed $75,000,000 reduced by the amount of the
credit allowed under subsection (a) to the taxpayer (or
any predecessor) for all prior taxable years.
``(2) Amount allowed for 15 percent savings
refrigerators.--In the case of refrigerators described
in subsection (b)(1)(C)(i), the aggregate amount of the
credit allowed under subsection (a) with respect to a
taxpayer for any taxable year shall not exceed
$20,000,000.
``(3) Limitation based on gross receipts.--The
credit allowed under subsection (a) with respect to a
taxpayer for the taxable year shall not exceed an
amount equal to 2 percent of the average annual gross
receipts of the taxpayer for the 3 taxable years
preceding the taxable year in which the credit is
determined.
``(4) Gross receipts.--For purposes of this
subsection, the rules of paragraphs (2) and (3) of
section 448(c) shall apply.
``(f) Definitions.--For purposes of this section--
``(1) Qualified energy efficient appliance.--The
term `qualified energy efficient appliance' means--
``(A) any dishwasher described in
subsection (b)(1)(A),
``(B) any clothes washer described in
subsection (b)(1)(B), and
``(C) any refrigerator described in
subsection (b)(1)(C).
``(2) Dishwasher.--The term `dishwasher' means a
residential dishwasher subject to the energy
conservation standards established by the Department of
Energy.
``(3) Clothes washer.--The term `clothes washer'
means a residential model clothes washer, including a
residential style coin operated washer.
``(4) Refrigerator.--The term `refrigerator' means
a residential model automatic defrost refrigerator-
freezer which has an internal volume of at least 16.5
cubic feet.
``(5) EF.--The term `EF' means the energy factor
established by the Department of Energy for compliance
with the Federal energy conservation standards.
``(6) Produced.--The term `produced' includes
manufactured.
``(7) 2001 energy conservation standard.--The term
`2001 energy conservation standard' means the energy
conservation standards promulgated by the Department of
Energy and effective July 1, 2001.
``(g) Special Rules.--For purposes of this section--
``(1) In general.--Rules similar to the rules of
subsections (c), (d), and (e) of section 52 shall
apply.
``(2) Controlled group.--
``(A) In general.--All persons treated as a
single employer under subsection (a) or (b) of
section 52 or subsection (m) or (o) of section
414 shall be treated as a single producer.
``(B) Inclusion of foreign corporations.--
For purposes of subparagraph (A), in applying
subsections (a) and (b) of section 52 to this
section, section 1563 shall be applied without
regard to subsection (b)(2)(C) thereof.
``(3) Verification.--No amount shall be allowed as
a credit under subsection (a) with respect to which the
taxpayer has not submitted such information or
certification as the Secretary, in consultation with
the Secretary of Energy, determines necessary.''.
(b) Conforming Amendment.--Section 38(b) (relating to
general business credit), as amended by this Act, is amended by
striking ``plus'' at the end of paragraph (22), by striking the
period at the end of paragraph (23) and inserting ``, plus'',
and by adding at the end the following new paragraph:
``(24) the energy efficient appliance credit
determined under section 45M(a).''.
(c) Clerical Amendment.--The table of sections for subpart
D of part IV of subchapter A of chapter 1, as amended by this
Act, is amended by adding at the end the following new item:
``Sec. 45M. Energy efficient appliance credit.''.
(d) Effective Date.--The amendments made by this section
shall apply to appliances produced after December 31, 2005.
SEC. 1335. CREDIT FOR RESIDENTIAL ENERGY EFFICIENT PROPERTY.
(a) In General.--Subpart A of part IV of subchapter A of
chapter 1 (relating to nonrefundable personal credits), as
amended by this Act, is amended by inserting after section 25C
the following new section:
``SEC. 25D. RESIDENTIAL ENERGY EFFICIENT PROPERTY.
``(a) Allowance of Credit.--In the case of an individual,
there shall be allowed as a credit against the tax imposed by
this chapter for the taxable year an amount equal to the sum
of--
``(1) 30 percent of the qualified photovoltaic
property expenditures made by the taxpayer during such
year,
``(2) 30 percent of the qualified solar water
heating property expenditures made by the taxpayer
during such year, and
``(3) 30 percent of the qualified fuel cell
property expenditures made by the taxpayer during such
year.
``(b) Limitations.--
``(1) Maximum credit.--The credit allowed under
subsection (a) for any taxable year shall not exceed--
``(A) $2,000 with respect to any qualified
photovoltaic property expenditures,
``(B) $2,000 with respect to any qualified
solar water heating property expenditures, and
``(C) $500 with respect to each half
kilowatt of capacity of qualified fuel cell
property (as defined in section 48(c)(1)) for
which qualified fuel cell property expenditures
are made.
``(2) Certification of solar water heating
property.--No credit shall be allowed under this
section for an item of property described in subsection
(d)(1) unless such property is certified for
performance by the non-profit Solar Rating
Certification Corporation or a comparable entity
endorsed by the government of the State in which such
property is installed.
``(c) Carryforward of Unused Credit.--If the credit
allowable under subsection (a) exceeds the limitation imposed
by section 26(a) for such taxable year reduced by the sum of
the credits allowable under this subpart (other than this
section), such excess shall be carried to the succeeding
taxable year and added to the credit allowable under subsection
(a) for such succeeding taxable year.
``(d) Definitions.--For purposes of this section--
``(1) Qualified solar water heating property
expenditure.--The term `qualified solar water heating
property expenditure' means an expenditure for property
to heat water for use in a dwelling unit located in the
United States and used as a residence by the taxpayer
if at least half of the energy used by such property
for such purpose is derived from the sun.
``(2) Qualified photovoltaic property
expenditure.--The term `qualified photovoltaic property
expenditure' means an expenditure for property which
uses solar energy to generate electricity for use in a
dwelling unit located in the United States and used as
a residence by the taxpayer.
``(3) Qualified fuel cell property expenditure.--
The term `qualified fuel cell property expenditure'
means an expenditure for qualified fuel cell property
(as defined in section 48(c)(1)) installed on or in
connection with a dwelling unit located in the United
States and used as a principal residence (within the
meaning of section 121) by the taxpayer.
``(e) Special Rules.--For purposes of this section--
``(1) Labor costs.--Expenditures for labor costs
properly allocable to the onsite preparation, assembly,
or original installation of the property described in
subsection (d) and for piping or wiring to interconnect
such property to the dwelling unit shall be taken into
account for purposes of this section.
``(2) Solar panels.--No expenditure relating to a
solar panel or other property installed as a roof (or
portion thereof) shall fail to be treated as property
described in paragraph (1) or (2) of subsection (d)
solely because it constitutes a structural component of
the structure on which it is installed.
``(3) Swimming pools, etc., used as storage
medium.--Expenditures which are properly allocable to a
swimming pool, hot tub, or any otherenergy storage
medium which has a function other than the function of such storage
shall not be taken into account for purposes of this section.
``(4) Dollar amounts in case of joint occupancy.--
In the case of any dwelling unit which is jointly
occupied and used during any calendar year as a
residence by 2 or more individuals the following rules
shall apply:
``(A) The amount of the credit allowable,
under subsection (a) by reason of expenditures
(as the case may be) made during such calendar
year by any of such individuals with respect to
such dwelling unit shall be determined by
treating all of such individuals as 1 taxpayer
whose taxable year is such calendar year.
``(B) There shall be allowable, with
respect to such expenditures to each of such
individuals, a credit under subsection (a) for
the taxable year in which such calendar year
ends in an amount which bears the same ratio to
the amount determined under subparagraph (A) as
the amount of such expenditures made by such
individual during such calendar year bears to
the aggregate of such expenditures made by all
of such individuals during such calendar year.
``(C) Subparagraphs (A) and (B) shall be
applied separately with respect to expenditures
described in paragraphs (1), (2), and (3) of
subsection (d).
``(5) Tenant-stockholder in cooperative housing
corporation.--In the case of an individual who is a
tenant-stockholder (as defined in section 216) in a
cooperative housing corporation (as defined in such
section), such individual shall be treated as having
made his tenant-stockholder's proportionate share (as
defined in section 216(b)(3)) of any expenditures of
such corporation.
``(6) Condominiums.--
``(A) In general.--In the case of an
individual who is a member of a condominium
management association with respect to a
condominium which the individual owns, such
individual shall be treated as having made the
individual's proportionate share of any
expenditures of such association.
``(B) Condominium management association.--
For purposes of this paragraph, the term
`condominium management association' means an
organization which meets the requirements of
paragraph (1) of section 528(c) (other than
subparagraph (E) thereof) with respect to a
condominium project substantially all of the
units of which are used as residences.
``(7) Allocation in certain cases.--If less than 80
percent of the use of an item is for nonbusiness
purposes, only that portion of the expenditures for
such item which is properly allocable to use for
nonbusiness purposes shall be taken into account.
``(8) When expenditure made; amount of
expenditure.--
``(A) In general.--Except as provided in
subparagraph (B), an expenditure with respect
to an item shall be treated as made when the
original installation of the item is completed.
``(B) Expenditures part of building
construction.--In the case of an expenditure in
connection with the construction or
reconstruction of a structure, such expenditure
shall be treated as made when the original use
of the constructed or reconstructed structure
by the taxpayer begins.
``(9) Property financed by subsidized energy
financing.--For purposes of determining the amount of
expenditures made by any individual with respect to any
dwelling unit, there shall not be taken into account
expenditures which are made from subsidized energy
financing (as defined in section 48(a)(4)(C)).
``(f) Basis Adjustments.--For purposes of this subtitle, if
a credit is allowed under this section for any expenditure with
respect to any property, the increase in the basis of such
property which would (but for this subsection) result from such
expenditure shall be reduced by the amount of the credit so
allowed.
``(g) Termination.--The credit allowed under this section
shall not apply to property placed in service after December
31, 2007.''.
(b) Conforming Amendments.--
(1) Section 23(c) is amended by striking ``this
section and section 1400C'' and inserting ``this
section, section 25D, and section 1400C''.
(2) Section 25(e)(1)(C) is amended by striking
``this section and sections 23 and 1400C'' and
inserting ``other than this section, section 23,
section 25D, and section 1400C''.
(3) Section 1400C(d) is amended by striking ``this
section'' and inserting ``this section and section
25D''.
(4) Section 1016(a), as amended by this Act, is
amended by striking ``and'' at the end of paragraph
(33), by striking the period at the end of paragraph
(34) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(35) to the extent provided in section 25D(f), in
the case of amounts with respect to which a credit has
been allowed under section 25D.''.
(5) The table of sections for subpart A of part IV
of subchapter A of chapter 1, as amended by this Act,
is amended by inserting after the item relating to
section 25C the following new item:
``Sec. 25D. Residential energy efficient property.''.
(c) Effective Dates.--The amendments made by this section
shall apply to property placed in service after December 31,
2005, in taxable years ending after such date.
SEC. 1336. CREDIT FOR BUSINESS INSTALLATION OF QUALIFIED FUEL CELLS AND
STATIONARY MICROTURBINE POWER PLANTS.
(a) In General.--Section 48(a)(3)(A) (defining energy
property) is amended by striking ``or'' at the end of clause
(i), by adding ``or'' at the end of clause (ii), and by
inserting after clause (ii) the following new clause:
``(iii) qualified fuel cell
property or qualified microturbine
property,''.
(b) Qualified Fuel Cell Property; Qualified Microturbine
Property.--Section 48 (relating to energy credit) is amended by
adding at the end the following new subsection:
``(c) Qualified Fuel Cell Property; Qualified Microturbine
Property.--For purposes of this subsection--
``(1) Qualified fuel cell property.--
``(A) In general.--The term `qualified fuel
cell property' means a fuel cell power plant
which--
``(i) has a nameplate capacity of
at least 0.5 kilowatt of electricity
using an electrochemical process, and
``(ii) has an electricity-only
generation efficiency greater than 30
percent.
``(B) Limitation.--In the case of qualified
fuel cell property placed in service during the
taxable year, the credit otherwise determined
under paragraph (1) for such year with respect
to such property shall not exceed an amount
equal to $500 for each 0.5 kilowatt of capacity
of such property.
``(C) Fuel cell power plant.--The term
`fuel cell power plant' means an integrated
system comprised of a fuel cell stack assembly
and associated balance of plant components
which converts a fuel into electricity using
electrochemical means.
``(D) Special rule.--The first sentence of
the matter in subsection (a)(3) which follows
subparagraph (D) thereof shall not apply to
qualified fuel cell property which is used
predominantly in the trade or business of the
furnishing or sale of telephone service,
telegraph service by means of domestic
telegraph operations, or other telegraph
services (other than international telegraph
services).
``(E) Termination.--The term `qualified
fuel cell property' shall not include any
property for any period after December 31,
2007.
``(2) Qualified microturbine property.--
``(A) In general.--The term `qualified
microturbine property' means a stationary
microturbine power plant which--
``(i) has a nameplate capacity of
less than 2,000 kilowatts, and
``(ii) has an electricity-only
generation efficiency of not less than
26 percent at International Standard
Organization conditions.
``(B) Limitation.--In the case of qualified
microturbine property placed in service during
the taxable year, the credit otherwise
determined under paragraph (1) for such year
with respect to such property shall not exceed
an amount equal $200 for each kilowatt of
capacity of such property.
``(C) Stationary microturbine power
plant.--The term `stationary microturbine power
plant' means an integrated system comprised of
a gas turbine engine, a combustor, a
recuperator or regenerator, a generator or
alternator, and associated balance of plant
components which converts a fuel into
electricity and thermal energy. Such term also
includes all secondary components located
between the existing infrastructure for fuel
delivery and the existing infrastructure for
power distribution, including equipment and
controls for meeting relevant power standards,
such as voltage, frequency, and power factors.
``(D) Special rule.--The first sentence of
the matter in subsection (a)(3) which follows
subparagraph (D) thereof shall not apply to
qualified microturbine property which is used
predominantly in the trade or business of the
furnishing or sale of telephone service,
telegraph service by means of domestic
telegraph operations, or other telegraph
services (other than international telegraph
services).
``(E) Termination.--The term `qualified
microturbine property' shall not include any
property for any period after December 31,
2007.''.
(c) Energy Percentage.--Section 48(a)(2)(A) (relating to
energy percentage) is amended to read as follows:
``(A) In general.--The energy percentage
is--
``(i) in the case of qualified fuel
cell property, 30 percent, and
``(ii) in the case of any other
energy property, 10 percent.''.
(d) Conforming Amendment.--Section 48(a)(1) is amended by
inserting ``except as provided in paragraph (1)(B) or (2)(B) of
subsection (d),'' before ``the energy''.
(e) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2005, in taxable
years ending after such date, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
SEC. 1337. BUSINESS SOLAR INVESTMENT TAX CREDIT.
(a) Increase in Energy Percentage.--Section 48(a)(2)(A)
(relating to energy percentage), as amended by this Act, is
amended to read as follows:
``(A) In general.--The energy percentage
is--
``(i) 30 percent in the case of--
``(I) qualified fuel cell
property,
``(II) energy property
described in paragraph
(3)(A)(i) but only with respect
to periods ending before
January 1, 2008, and
``(III) energy property
described in paragraph
(3)(A)(ii), and
``(ii) in the case of any energy
property to which clause (i) does not
apply, 10 percent.''.
(b) Hybrid Solar Lighting Systems.--Subparagraph (A) of
section 48(a)(3) is amended by striking ``or'' at the end of
clause (i), by redesignating clause (ii) as clause (iii), and
by inserting after clause (i) the following new clause:
``(ii) equipment which uses solar
energy to illuminate the inside of a
structure using fiber-optic distributed
sunlight but only with respect to
periods ending before January 1, 2008,
or''.
(c) Limitation on Use of Solar Energy to Heat Swimming
Pools.--Clause (i) of section 48(a)(3)(A) is amended by
inserting ``excepting property used to generate energy for the
purposes of heating a swimming pool,'' after ``solar process
heat,''.
(d) Effective Date.--The amendments made by this section
shall apply to periods after December 31, 2005, in taxable
years ending after such date, under rules similar to the rules
of section 48(m) of the Internal Revenue Code of 1986 (as in
effect on the day before the date of the enactment of the
Revenue Reconciliation Act of 1990).
Subtitle D--Alternative Motor Vehicles and Fuels Incentives
SEC. 1341. ALTERNATIVE MOTOR VEHICLE CREDIT.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to foreign tax credit, etc.) is amended by
adding at the end the following new section:
``SEC. 30B. ALTERNATIVE MOTOR VEHICLE CREDIT.
``(a) Allowance of Credit.--There shall be allowed as a
credit against the tax imposed by this chapter for the taxable
year an amount equal to the sum of--
``(1) the new qualified fuel cell motor vehicle
credit determined under subsection (b),
``(2) the new advanced lean burn technology motor
vehicle credit determined under subsection (c),
``(3) the new qualified hybrid motor vehicle credit
determined under subsection (d), and
``(4) the new qualified alternative fuel motor
vehicle credit determined under subsection (e).
``(b) New Qualified Fuel Cell Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a),
the new qualified fuel cell motor vehicle credit
determined under this subsection with respect to a new
qualified fuel cell motor vehicle placed in service by
the taxpayer during the taxable year is--
``(A) $8,000 ($4,000 in the case of a
vehicle placed in service after December 31,
2009), if such vehicle has a gross vehicle
weight rating of not more than 8,500 pounds,
``(B) $10,000, if such vehicle has a gross
vehicle weight rating of more than 8,500 pounds
but not more than 14,000 pounds,
``(C) $20,000, if such vehicle has a gross
vehicle weight rating of more than 14,000
pounds but not more than 26,000 pounds, and
``(D) $40,000, if such vehicle has a gross
vehicle weight rating of more than 26,000
pounds.
``(2) Increase for fuel efficiency.--
``(A) In general.--The amount determined
under paragraph (1)(A) with respect to a new
qualified fuel cell motor vehicle which is a
passenger automobile or light truck shall be
increased by--
``(i) $1,000, if such vehicle
achieves at least 150 percent but less
than 175 percent of the 2002 model year
city fuel economy,
``(ii) $1,500, if such vehicle
achieves at least 175 percent but less
than 200 percent of the 2002 model year
city fuel economy,
``(iii) $2,000, if such vehicle
achieves at least 200 percent but less
than 225 percent of the 2002 model year
city fuel economy,
``(iv) $2,500, if such vehicle
achieves at least 225 percent but less
than 250 percent of the 2002 model year
city fuel economy,
``(v) $3,000, if such vehicle
achieves at least 250 percent but less
than 275 percent of the 2002 model year
city fuel economy,
``(vi) $3,500, if such vehicle
achieves at least 275 percent but less
than 300 percent of the 2002 model year
city fuel economy, and
``(vii) $4,000, if such vehicle
achieves at least 300 percent of the
2002 model year city fuel economy.
``(B) 2002 model year city fuel economy.--
For purposes of subparagraph (A), the 2002
model year city fuel economy with respect to a
vehicle shall be determined in accordance with
the following tables:
``(i) In the case of a passenger
automobile:
If vehicle inertia weight class is: The 2002 model year city
fuel economy is:
1,500 or 1,750 lbs............................................45.2 mpg
2,000 lbs.....................................................39.6 mpg
2,250 lbs.....................................................35.2 mpg
2,500 lbs.....................................................31.7 mpg
2,750 lbs.....................................................28.8 mpg
3,000 lbs.....................................................26.4 mpg
3,500 lbs.....................................................22.6 mpg
4,000 lbs.....................................................19.8 mpg
4,500 lbs.....................................................17.6 mpg
5,000 lbs.....................................................15.9 mpg
5,500 lbs.....................................................14.4 mpg
6,000 lbs.....................................................13.2 mpg
6,500 lbs.....................................................12.2 mpg
7,000 to 8,500 lbs...........................................11.3 mpg.
``(ii) In the case of a light
truck:
If vehicle inertia weight class is: The 2002 model year city
fuel economy is:
1,500 or 1,750 lbs...................................... 39.4 mpg
2,000 lbs............................................... 35.2 mpg
2,250 lbs............................................... 31.8 mpg
2,500 lbs............................................... 29.0 mpg
2,750 lbs............................................... 26.8 mpg
3,000 lbs............................................... 24.9 mpg
3,500 lbs............................................... 21.8 mpg
4,000 lbs............................................... 19.4 mpg
4,500 lbs............................................... 17.6 mpg
5,000 lbs............................................... 16.1 mpg
5,500 lbs............................................... 14.8 mpg
6,000 lbs............................................... 13.7 mpg
6,500 lbs............................................... 12.8 mpg
7,000 to 8,500 lbs...................................... 12.1 mpg.
``(C) Vehicle inertia weight class.--For
purposes of subparagraph (B), the term `vehicle
inertia weight class' has the same meaning as
when defined in regulations prescribed by the
Administrator of the Environmental Protection
Agency for purposes of the administration of
title II of the Clean Air Act (42 U.S.C. 7521
et seq.).
``(3) New qualified fuel cell motor vehicle.--For
purposes of this subsection, the term `new qualified
fuel cell motor vehicle' means a motor vehicle--
``(A) which is propelled by power derived
from 1 or more cells which convert chemical
energy directly into electricity by combining
oxygen with hydrogen fuel which is stored on
board the vehicle in any form and may or may
not require reformation prior to use,
``(B) which, in the case of a passenger
automobile or light truck, has received on or
after the date of the enactment of this section
a certificate that such vehicle meets or
exceeds the Bin 5 Tier II emission level
established in regulations prescribed by the
Administrator of the Environmental Protection
Agency under section 202(i) of the Clean Air
Act for that make and model year vehicle,
``(C) the original use of which commences
with the taxpayer,
``(D) which is acquired for use or lease by
the taxpayer and not for resale, and
``(E) which is made by a manufacturer.
``(c) New Advanced Lean Burn Technology Motor Vehicle
Credit.--
``(1) In general.--For purposes of subsection (a),
the new advanced lean burn technology motor vehicle
credit determined under this subsection for the taxable
year is the credit amount determined under paragraph
(2) with respect to a new advanced lean burn technology
motor vehicle placed in service by the taxpayer during
the taxable year.
``(2) Credit amount.--
``(A) Fuel economy.--
``(i) In general.--The credit
amount determined under this paragraph
shall be determined in accordance with
the following table:
In the case of a vehicle which achieves
a fuel economy (expressed as a percentage
of the 2002 model year city fuel economy) of-- The credit amount is--
At least 125 percent but less than 150 percent................ $400
At least 150 percent but less than 175 percent................ $800
At least 175 percent but less than 200 percent................ $1,200
At least 200 percent but less than 225 percent................ $1,600
At least 225 percent but less than 250 percent................ $2,000
At least 250 percent.......................................... $2,400.
``(ii) 2002 model year city fuel
economy.--For purposes of clause (i),
the 2002 model year city fuel economy
with respect to a vehicle shall be
determined on a gasoline gallon
equivalent basis as determined by the
Administrator of the Environmental
Protection Agency using the tables
provided in subsection (b)(2)(B) with
respect to such vehicle.
``(B) Conservation credit.--The amount
determined under subparagraph (A) with respect
to a new advanced lean burn technology motor
vehicle shall be increased by the conservation
credit amount determined in accordance with the
following table:
In the case of a vehicle which achieves
a lifetime fuel savings (expressed in gallons
of gasoline) of-- The conservation credit amount is--
At least 1,200 but less than 1,800............................ $250
At least 1,800 but less than 2,400............................ $500
At least 2,400 but less than 3,000............................ $750
At least 3,000................................................ $1,000.
``(3) New advanced lean burn technology motor
vehicle.--For purposes of this subsection, the term
`new advanced lean burn technology motor vehicle' means
a passenger automobile or a light truck--
``(A) with an internal combustion engine
which--
``(i) is designed to operate
primarily using more air than is
necessary for complete combustion of
the fuel,
``(ii) incorporates direct
injection,
``(iii) achieves at least 125
percent of the 2002 model year city
fuel economy,
``(iv) for 2004 and later model
vehicles, has received a certificate
that such vehicle meets or exceeds--
``(I) in the case of a
vehicle having a gross vehicle
weight rating of 6,000 pounds
or less, the Bin 5 Tier II
emission standard established
in regulations prescribed by
the Administrator of the
Environmental Protection Agency
under section 202(i) of the
Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a
vehicle having a gross vehicle
weight rating of more than
6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II
emission standard which is so
established.
``(B) the original use of which commences
with the taxpayer,
``(C) which is acquired for use or lease by
the taxpayer and not for resale, and
``(D) which is made by a manufacturer.
``(4) Lifetime fuel savings.--For purposes of this
subsection, the term `lifetime fuel savings' means, in
the case of any new advanced lean burn technology motor
vehicle, an amount equal to the excess (if any) of--
``(A) 120,000 divided by the 2002 model
year city fuel economy for the vehicle inertia
weight class, over
``(B) 120,000 divided by the city fuel
economy for such vehicle.
``(d) New Qualified Hybrid Motor Vehicle Credit.--
``(1) In general.--For purposes of subsection (a),
the new qualified hybrid motor vehicle credit
determined under this subsection for the taxable year
is the credit amount determined under paragraph (2)
with respect to a new qualified hybrid motor vehicle
placed in service by the taxpayer during the taxable
year.
``(2) Credit amount.--
``(A) Credit amount for passenger
automobiles and light trucks.--In the case of a
new qualified hybrid motor vehicle which is a
passenger automobile or light truck and which
has a gross vehicle weight rating of not more
than 8,500 pounds, the amount determined under
this paragraph is the sum of the amounts
determined under clauses (i) and (ii).
``(i) Fuel economy.--The amount
determined under this clause is the
amount which would be determined under
subsection (c)(2)(A) if such vehicle
were a vehicle referred to in such
subsection.
``(ii) Conservation credit.--The
amount determined under this clause is
the amount which would be determined
under subsection (c)(2)(B) if such
vehicle were a vehicle referred to in
such subsection.
``(B) Credit amount for other motor
vehicles.--
``(i) In general.--In the case of
any new qualified hybrid motor vehicle
to which subparagraph (A) does not
apply, the amount determined under this
paragraph is the amount equal to the
applicable percentage of the qualified
incremental hybrid cost of the vehicle
as certified under clause (v).
``(ii) Applicable percentage.--For
purposes of clause (i), the applicable
percentage is--
``(I) 20 percent if the
vehicle achieves an increase in
city fuel economy relative to a
comparable vehicle of at least
30 percent but less than 40
percent,
``(II) 30 percent if the
vehicle achieves such an
increase of at least 40 percent
but less than 50 percent, and
``(III) 40 percent if the
vehicle achieves such an
increase of at least 50
percent.
``(iii) Qualified incremental
hybrid cost.--For purposes of this
subparagraph, the qualified incremental
hybrid cost of any vehicle is equal to
the amount of the excess of the
manufacturer's suggested retail price
for such vehicle over such price for a
comparable vehicle, to the extent such
amount does not exceed--
``(I) $7,500, if such
vehicle has a gross vehicle
weight rating of not more than
14,000 pounds,
``(II) $15,000, if such
vehicle has a gross vehicle
weight rating of more than
14,000 pounds but not more than
26,000 pounds, and
``(III) $30,000, if such
vehicle has a gross vehicle
weight rating of more than
26,000 pounds.
``(iv) Comparable vehicle.--For
purposes of this subparagraph, the term
`comparable vehicle' means, with
respect to any new qualified hybrid
motor vehicle, any vehicle which is
powered solely by a gasoline or diesel
internal combustion engine and which is
comparable in weight, size, and use to
such vehicle.
``(v) Certification.--A
certification described in clause (i)
shall be made by the manufacturer and
shall be determined in accordance with
guidance prescribed by the Secretary.
Such guidance shall specify procedures
and methods for calculating fuel
economy savings and incremental hybrid
costs.
``(3) New qualified hybrid motor vehicle.--For
purposes of this subsection--
``(A) In general.--The term `new qualified
hybrid motor vehicle' means a motor vehicle--
``(i) which draws propulsion energy
from onboard sources of stored energy
which are both--
``(I) an internal
combustion or heat engine using
consumable fuel, and
``(II) a rechargeable
energy storage system,
``(ii) which, in the case of a
vehicle to which paragraph (2)(A)
applies, has received a certificate of
conformity under the Clean Air Act and
meets or exceeds the equivalent
qualifying California low emission
vehicle standard under section
243(e)(2) of the Clean Air Act for that
make and model year, and
``(I) in the case of a
vehicle having a gross vehicle
weight rating of 6,000 pounds
or less, the Bin 5 Tier II
emission standard established
in regulations prescribed by
the Administrator of the
Environmental Protection Agency
under section 202(i) of the
Clean Air Act for that make and
model year vehicle, and
``(II) in the case of a
vehicle having a gross vehicle
weight rating of more than
6,000 pounds but not more than
8,500 pounds, the Bin 8 Tier II
emission standard which is so
established,
``(iii) which has a maximum
available power of at least--
``(I) 4 percent in the case
of a vehicle to which paragraph
(2)(A) applies,
``(II) 10 percent in the
case of a vehicle which has a
gross vehicle weight rating or
more than 8,500 pounds and not
than 14,000 pounds, and
``(III) 15 percent in the
case of a vehicle in excess of
14,000 pounds,
``(iv) which, in the case of a
vehicle to which paragraph (2)(B)
applies, has an internal combustion or
heat engine which has received a
certificate of conformity under the
Clean Air Act as meeting the emission
standards set in the regulations
prescribed by the Administrator of the
Environmental Protection Agency for
2004 through 2007 model year diesel
heavy duty engines or ottocycle heavy
duty engines, as applicable,
``(v) the original use of which
commences with the taxpayer,
``(vi) which is acquired for use or
lease by the taxpayer and not for
resale, and
``(vii) which is made by a
manufacturer.
Such term shall not include any vehicle which
is not a passenger automobile or light truck if
such vehicle has a gross vehicle weight rating
of less than 8,500 pounds.
``(B) Consumable fuel.--For purposes of
subparagraph (A)(i)(I), the term `consumable
fuel' means any solid, liquid, or gaseous
matter which releases energy when consumed by
an auxiliary power unit.
``(C) Maximum available power.--
``(i) Certain passenger automobiles
and light trucks.--In the case of a
vehicle to which paragraph (2)(A)
applies, the term `maximum available
power' means the maximum power
available from the rechargeable energy
storage system, during a standard 10
second pulse power or equivalent test,
divided by such maximum power and the
SAE net power of the heat engine.
``(ii) Other motor vehicles.--In
the case of a vehicle to which
paragraph (2)(B) applies, the term
`maximum available power' means the
maximum power available from the
rechargeable energy storage system,
during a standard 10 second pulse power
or equivalent test, divided by the
vehicle's total traction power. For
purposes of the preceding sentence, the
term `total traction power' means the
sum of the peak power from the
rechargeable energy storage system and
the heat engine peak power of the
vehicle, except that if such storage
system is the sole means by which the
vehicle can be driven, the total
traction power is the peak power of
such storage system.
``(e) New Qualified Alternative Fuel Motor Vehicle
Credit.--
``(1) Allowance of credit.--Except as provided in
paragraph (5), the new qualified alternative fuel motor
vehicle credit determined under this subsection is an
amount equal to the applicable percentage of the
incremental cost of any new qualified alternative fuel
motor vehicle placed in service by the taxpayer during
the taxable year.
``(2) Applicable percentage.--For purposes of
paragraph (1), the applicable percentage with respect
to any new qualified alternative fuel motor vehicle
is--
``(A) 50 percent, plus
``(B) 30 percent, if such vehicle--
``(i) has received a certificate of
conformity under the Clean Air Act and
meets or exceeds the most stringent
standard available for certification
under the Clean Air Act for that make
and model year vehicle (other than a
zero emission standard), or
``(ii) has received an order
certifying the vehicle as meeting the
same requirements as vehicles which may
be sold or leased in California and
meets or exceeds the most stringent
standard available for certification
under the State laws of California
(enacted in accordance with a waiver
granted under section 209(b) of the
Clean Air Act) for that make and model
year vehicle (other than a zero
emission standard).
For purposes of the preceding sentence, in the case of
any new qualified alternative fuel motor vehicle which
weighs more than 14,000 pounds gross vehicle weight
rating, the most stringent standard available shall be
such standard available for certification on the date
of the enactment of the Energy Tax Incentives Act of
2005.
``(3) Incremental cost.--For purposes of this
subsection, the incremental cost of any new qualified
alternative fuel motor vehicle is equal to the amount
of the excess of the manufacturer's suggested retail
price for such vehicle over such price for a gasoline
or diesel fuel motor vehicle of the same model, to the
extent such amount does not exceed--
``(A) $5,000, if such vehicle has a gross
vehicle weight rating of not more than 8,500
pounds,
``(B) $10,000, if such vehicle has a gross
vehicle weight rating of more than 8,500 pounds
but not more than 14,000 pounds,
``(C) $25,000, if such vehicle has a gross
vehicle weight rating of more than 14,000
pounds but not more than 26,000 pounds, and
``(D) $40,000, if such vehicle has a gross
vehicle weight rating of more than 26,000
pounds.
``(4) New qualified alternative fuel motor
vehicle.--For purposes of this subsection--
``(A) In general.--The term `new qualified
alternative fuel motor vehicle' means any motor
vehicle--
``(i) which is only capable of
operating on an alternative fuel,
``(ii) the original use of which
commences with the taxpayer,
``(iii) which is acquired by the
taxpayer for use or lease, but not for
resale, and
``(iv) which is made by a
manufacturer.
``(B) Alternative fuel.--The term
`alternative fuel' means compressed natural
gas, liquefied natural gas, liquefied petroleum
gas, hydrogen, and any liquid at least 85
percent of the volume of which consists of
methanol.
``(5) Credit for mixed-fuel vehicles.--
``(A) In general.--In the case of a mixed-
fuel vehicle placed in service by the taxpayer
during the taxable year, the credit determined
under this subsection is an amount equal to--
``(i) in the case of a 75/25 mixed-
fuel vehicle, 70 percent of the credit
which would have been allowed under
this subsection if such vehicle was a
qualified alternative fuel motor
vehicle, and
``(ii) in the case of a 90/10
mixed-fuel vehicle, 90 percent of the
credit which would have been allowed
under this subsection if such vehicle
was a qualified alternative fuel motor
vehicle.
``(B) Mixed-fuel vehicle.--For purposes of
this subsection, the term `mixed-fuel vehicle'
means any motor vehicle described in
subparagraph (C) or (D) of paragraph (3),
which--
``(i) is certified by the
manufacturer as being able to perform
efficiently in normal operation on a
combination of an alternative fuel and
a petroleum-based fuel,
``(ii) either--
``(I) has received a
certificate of conformity under
the Clean Air Act, or
``(II) has received an
order certifying the vehicle as
meeting the same requirements
as vehicles which may be sold
or leased in California and
meets or exceeds the low
emission vehicle standard under
section 88.105-94 of title 40,
Code of Federal Regulations,
for that make and model year
vehicle,
``(iii) the original use of which
commences with the taxpayer,
``(iv) which is acquired by the
taxpayer for use or lease, but not for
resale, and
``(v) which is made by a
manufacturer.
``(C) 75/25 mixed-fuel vehicle.--For
purposes of this subsection, the term `75/25
mixed-fuel vehicle' means a mixed-fuel vehicle
which operates using at least 75 percent
alternative fuel and not more than 25 percent
petroleum-based fuel.
``(D) 90/10 mixed-fuel vehicle.--For
purposes of this subsection, the term `90/10
mixed-fuel vehicle' means a mixed-fuel vehicle
which operates using at least 90 percent
alternative fuel and not more than 10 percent
petroleum-based fuel.
``(f) Limitation on Number of New Qualified Hybrid and
Advanced Lean-Burn Technology Vehicles Eligible for Credit.--
``(1) In general.--In the case of a qualified
vehicle sold during the phaseout period, only the
applicable percentage of the credit otherwise allowable
under subsection (c) or (d) shall be allowed.
``(2) Phaseout period.--For purposes of this
subsection, the phaseout period is the period beginning
with the second calendar quarter following the calendar
quarter which includes the first date on which the
number of qualified vehicles manufactured by the
manufacturer of the vehicle referred to in paragraph
(1) sold for use in the United States after December
31, 2005, is at least 60,000.
``(3) Applicable percentage.--For purposes of
paragraph (1), the applicable percentage is--
``(A) 50 percent for the first 2 calendar
quarters of the phaseout period,
``(B) 25 percent for the 3d and 4th
calendar quarters of the phaseout period, and
``(C) 0 percent for each calendar quarter
thereafter.
``(4) Controlled groups.--
``(A) In general.--For purposes of this
subsection, all persons treated as a single
employer under subsection (a) or (b) of section
52 or subsection (m) or (o) of section 414
shall be treated as a single manufacturer.
``(B) Inclusion of foreign corporations.--
For purposes of subparagraph (A), in applying
subsections (a) and (b) of section 52 to this
section, section 1563 shall be applied without
regard to subsection (b)(2)(C) thereof.
``(5) Qualified vehicle.--For purposes of this
subsection, the term `qualified vehicle' means any new
qualified hybrid motor vehicle (described in subsection
(d)(2)(A)) and any new advanced lean burn technology
motor vehicle.
``(g) Application With Other Credits.--
``(1) Business credit treated as part of general
business credit.--So much of the credit which would be
allowed under subsection (a) for any taxable year
(determined without regard to this subsection) that is
attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit
listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--The credit allowed under
subsection (a) (after the application of paragraph (1))
for any taxable year shall not exceed the excess (if
any) of--
``(A) the regular tax reduced by the sum of
the credits allowable under subpart A and
sections 27 and 30, over
``(B) the tentative minimum tax for the
taxable year.
``(h) Other Definitions and Special Rules.--For purposes of
this section--
``(1) Motor vehicle.--The term `motor vehicle' has
the meaning given such term by section 30(c)(2).
``(2) City fuel economy.--The city fuel economy
with respect to any vehicle shall be measured in a
manner which is substantially similar to the manner
city fuel economy is measured in accordance with
procedures under part 600 of subchapter Q of chapter I
of title 40, Code of Federal Regulations, as in effect
on the date of the enactment of this section.
``(3) Other terms.--The terms `automobile',
`passenger automobile', `medium duty passenger
vehicle', `light truck', and `manufacturer' have the
meanings given such terms in regulations prescribed by
the Administrator of the Environmental Protection
Agency for purposes of the administration of title II
of the Clean Air Act (42 U.S.C. 7521 et seq.).
``(4) Reduction in basis.--For purposes of this
subtitle, the basis of any property for which a credit
is allowable under subsection (a) shall be reduced by
the amount of such credit so allowed (determined
without regard to subsection (g)).
``(5) No double benefit.--The amount of any
deduction or other credit allowable under this
chapter--
``(A) for any incremental cost taken into
account in computing the amount of the credit
determined under subsection (e) shall be
reduced by the amount of such credit
attributable to such cost, and
``(B) with respect to a vehicle described
under subsection (b) or (c), shall be reduced
bythe amount of credit allowed under subsection
(a) for such vehicle for the taxable year.
``(6) Property used by tax-exempt entity.--In the
case of a vehicle whose use is described in paragraph
(3) or (4) of section 50(b) and which is not subject to
a lease, the person who sold such vehicle to the person
or entity using such vehicle shall be treated as the
taxpayer that placed such vehicle in service, but only
if such person clearly discloses to such person or
entity in a document the amount of any credit allowable
under subsection (a) with respect to such vehicle
(determined without regard to subsection (g)).
``(7) Property used outside united states, etc.,
not qualified.--No credit shall be allowable under
subsection (a) with respect to any property referred to
in section 50(b)(1) or with respect to the portion of
the cost of any property taken into account under
section 179.
``(8) Recapture.--The Secretary shall, by
regulations, provide for recapturing the benefit of any
credit allowable under subsection (a) with respect to
any property which ceases to be property eligible for
such credit (including recapture in the case of a lease
period of less than the economic life of a vehicle).
``(9) Election to not take credit.--No credit shall
be allowed under subsection (a) for any vehicle if the
taxpayer elects to not have this section apply to such
vehicle.
``(10) Interaction with air quality and motor
vehicle safety standards.--Unless otherwise provided in
this section, a motor vehicle shall not be considered
eligible for a credit under this section unless such
vehicle is in compliance with--
``(A) the applicable provisions of the
Clean Air Act for the applicable make and model
year of the vehicle (or applicable air quality
provisions of State law in the case of a State
which has adopted such provision under a waiver
under section 209(b) of the Clean Air Act), and
``(B) the motor vehicle safety provisions
of sections 30101 through 30169 of title 49,
United States Code.
``(i) Regulations.--
``(1) In general.--Except as provided in paragraph
(2), the Secretary shall promulgate such regulations as
necessary to carry out the provisions of this section.
``(2) Coordination in prescription of certain
regulations.--The Secretary of the Treasury, in
coordination with the Secretary of Transportation and
the Administrator of the Environmental Protection
Agency, shall prescribe such regulations as necessary
to determine whether a motor vehicle meets the
requirements to be eligible for a credit under this
section.
``(j) Termination.--This section shall not apply to any
property purchased after--
``(1) in the case of a new qualified fuel cell
motor vehicle (as described in subsection (b)),
December 31, 2014,
``(2) in the case of a new advanced lean burn
technology motor vehicle (as described in subsection
(c)) or a new qualified hybrid motor vehicle (as
described in subsection (d)(2)(A)), December 31, 2010,
``(3) in the case of a new qualified hybrid motor
vehicle (as described in subsection (d)(2)(B)),
December 31, 2009, and
``(4) in the case of a new qualified alternative
fuel vehicle (as described in subsection (e)), December
31, 2010.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by this Act, is
amended by striking ``plus'' at the end of paragraph
(23), by striking the period at the end of paragraph
(24) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(25) the portion of the alternative motor vehicle
credit to which section 30B(g)(1) applies.''.
(2) Section 1016(a), as amended by this Act, is
amended by striking ``and'' at the end of paragraph
(34), by striking the period at the end of paragraph
(35) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(36) to the extent provided in section
30B(h)(4).''.
(3) Section 55(c)(2), as amended by this Act, is
amended by inserting ``30B(g)(2),'' after
``30(b)(2),''.
(4) Section 6501(m) is amended by inserting
``30B(h)(9),'' after ``30(d)(4),''.
(5) The table of sections for subpart B of part IV
of subchapter A of chapter 1 is amended by inserting
after the item relating to section 30A the following
new item:
``Sec. 30B. Alternative motor vehicle credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2005, in taxable years ending after such date.
SEC. 1342. CREDIT FOR INSTALLATION OF ALTERNATIVE FUELING STATIONS.
(a) In General.--Subpart B of part IV of subchapter A of
chapter 1 (relating to other credits), as amended by this Act,
is amended by adding at the end the following new section:
``SEC. 30C. ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.
``(a) Credit Allowed.--There shall be allowed as a credit
against the tax imposed by this chapter for the taxable year an
amount equal to 30 percent of the cost of any qualified
alternative fuel vehicle refueling property placed in service
by the taxpayer during the taxable year.
``(b) Limitation.--The credit allowed under subsection (a)
with respect to any alternative fuel vehicle refueling property
shall not exceed--
``(1) $30,000 in the case of a property of a
character subject to an allowance for depreciation, and
``(2) $1,000 in any other case.
``(c) Qualified Alternative Fuel Vehicle Refueling
Property.--
``(1) In general.--Except as provided in paragraph
(2), the term `qualified alternative fuel vehicle
refueling property' has the meaning given to such term
by section 179A(d), but only with respect to any fuel--
``(A) at least 85 percent of the volume of
which consists of 1 or more of the following:
ethanol, natural gas, compressed natural gas,
liquefied natural gas, liquefied petroleum gas,
or hydrogen, or
``(B) any mixture of biodiesel (as defined
in section 40A(d)(1)) and diesel fuel (as
defined in section 4083(a)(3)), determined
without regard to any use of kerosene and
containing at least 20 percent biodiesel.
``(2) Residential property.--In the case of any
property installed on property which is used as the
principal residence (within the meaning of section 121)
of the taxpayer, paragraph (1) of section 179A(d) shall
not apply.
``(d) Application With Other Credits.--
``(1) Business credit treated as part of general
business credit.--So much of the credit which would be
allowed under subsection (a) for any taxable year
(determined without regard to this subsection) that is
attributable to property of a character subject to an
allowance for depreciation shall be treated as a credit
listed in section 38(b) for such taxable year (and not
allowed under subsection (a)).
``(2) Personal credit.--The credit allowed under
subsection (a) (after the application of paragraph (1))
for any taxable year shall not exceed the excess (if
any) of--
``(A) the regular tax reduced by the sum of
the credits allowable under subpart A and
sections 27, 30, and 30B, over
``(B) the tentative minimum tax for the
taxable year.
``(e) Special Rules.--For purposes of this section--
``(1) Basis reduction.--The basis of any property
shall be reduced by the portion of the cost of such
property taken into account under subsection (a).
``(2) Property used by tax-exempt entity.--In the
case of any qualified alternative fuel vehicle
refueling property the use of which is described in
paragraph (3) or (4) of section 50(b) and which is not
subject to a lease, the person who sold such property
to the person or entity using such property shall be
treated as the taxpayer that placed such property in
service, but only if such person clearly discloses to
such person or entity in a document the amount of any
credit allowable under subsection (a) with respect to
such property (determined without regard to subsection
(d)).
``(3) Property used outside united states not
qualified.--No credit shall be allowable under
subsection (a) with respect to any property referred to
in section 50(b)(1) or with respect to the portion of
the cost of any property taken into account under
section 179.
``(4) Election not to take credit.--No credit shall
be allowed under subsection (a) for any property if the
taxpayer elects not to have this section apply to such
property.
``(5) Recapture rules.--Rules similar to the rules
of section 179A(e)(4) shall apply.
``(f) Regulations.--The Secretary shall prescribe such
regulations as necessary to carry out the provisions of this
section.
``(g) Termination.--This section shall not apply to any
property placed in service--
``(1) in the case of property relating to hydrogen,
after December 31, 2014, and
``(2) in the case of any other property, after
December 31, 2009.''.
(b) Conforming Amendments.--
(1) Section 38(b), as amended by this Act, is
amended by striking ``plus'' at the end of paragraph
(24), by striking the period at the end of paragraph
(25) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(26) the portion of the alternative fuel vehicle
refueling property credit to which section 30C(d)(1)
applies.''.
(2) Section 1016(a), as amended by this Act, is
amended by striking ``and'' at the end of paragraph
(35), by striking the period at the end of paragraph
(36) and inserting ``, and'', and by adding at the end
the following new paragraph:
``(37) to the extent provided in section 30C(f).''.
(3) Section 55(c)(2), as amended by this Act, is
amended by inserting ``30C(d)(2),'' after
``30B(g)(2),''.
(4) Section 6501(m) is amended by inserting
``30C(e)(5),'' after ``30B(h)(9),''.
(5) The table of sections for subpart B of part IV
of subchapter A of chapter 1, as amended by this Act,
is amended by inserting after the item relating to
section 30B the following new item:
``Sec. 30C. Clean-fuel vehicle refueling property credit.''.
(c) Effective Date.--The amendments made by this section
shall apply to property placed in service after December 31,
2005, in taxable years ending after such date.
SEC. 1343. REDUCED MOTOR FUEL EXCISE TAX ON CERTAIN MIXTURES OF DIESEL
FUEL.
(a) In General.--Paragraph (2) of section 4081(a) is
amended by adding at the end the following:
``(D) Diesel-water fuel emulsion.--In the
case of diesel-water fuel emulsion at least 14
percent of which is water and with respect to
which the emulsion additive is registered by a
United States manufacturer with the
Environmental Protection Agency pursuant to
section 211 of the Clean Air Act (as in effect
on March 31, 2003), subparagraph (A)(iii) shall
be applied by substituting `19.7 cents' for
`24.3 cents'. The preceding sentence shall not
applyto the removal, sale, or use of diesel-
water fuel emulsion unless the person so removing, selling, or using
such fuel is registered under section 4101.''.
(b) Special Rules for Diesel-Water Fuel Emulsions.--
(1) Refunds for tax-paid purchases.--Section 6427
is amended by redesignating subsections (m) through (p)
as subsections (n) through (q), respectively, and by
inserting after subsection (l) the following new
subsection:
``(m) Diesel Fuel Used to Produce Emulsion.--
``(1) In general.--Except as provided in subsection
(k), if any diesel fuel on which tax was imposed by
section 4081 at the regular tax rate is used by any
person in producing an emulsion described in section
4081(a)(2)(D) which is sold or used in such person's
trade or business, the Secretary shall pay (without
interest) to such person an amount equal to the excess
of the regular tax rate over the incentive tax rate
with respect to such fuel.
``(2) Definitions.--For purposes of paragraph (1)--
``(A) Regular tax rate.--The term `regular
tax rate' means the aggregate rate of tax
imposed by section 4081 determined without
regard to section 4081(a)(2)(D).
``(B) Incentive tax rate.--The term
`incentive tax rate' means the aggregate rate
of tax imposed by section 4081 determined with
regard to section 4081(a)(2)(D).''.
(2) Later separation of fuel.--Section 4081
(relating to imposition of tax) is amended by inserting
after subsection (b) the following new subsection:
``(c) Later Separation of Fuel From Diesel-Water Fuel
Emulsion.--If any person separates the taxable fuel from a
diesel-water fuel emulsion on which tax was imposed under
subsection (a) at a rate determined under subsection (a)(2)(D)
(or with respect to which a credit or payment was allowed or
made by reason of section 6427), such person shall be treated
as the refiner of such taxable fuel. The amount of tax imposed
on any removal of such fuel by such person shall be reduced by
the amount of tax imposed (and not credited or refunded) on any
prior removal or entry of such fuel.''.
(3) Credit claims.--Paragraphs (1) and (2) of
section 6427(i) are both amended by inserting ``(m),''
after ``(l),''.
(c) Effective Date.--The amendments made by this section
shall take effect on January 1, 2006.
SEC. 1344. EXTENSION OF EXCISE TAX PROVISIONS AND INCOME TAX CREDIT FOR
BIODIESEL.
(a) In General.--Sections 40A(e), 6426(c)(6), and
6427(e)(4)(B) are each amended by striking ``2006'' and
inserting ``2008''.
(b) Effective Date.--The amendments made by this section
shall take effect on the date of the enactment of this Act.
SEC. 1345. SMALL AGRI-BIODIESEL PRODUCER CREDIT.
(a) In General.--Subsection (a) of section 40A (relating to
biodiesel used as a fuel) is amended to read as follows:
``(a) General Rule.--For purposes of section 38, the
biodiesel fuels credit determined under this section for the
taxable year is an amount equal to the sum of--
``(1) the biodiesel mixture credit, plus
``(2) the biodiesel credit, plus
``(3) in the case of an eligible small agri-
biodiesel producer, the small agri-biodiesel producer
credit.''.
(b) Small Agri-biodiesel Producer Credit Defined.--Section
40A(b) (relating to definition of biodiesel mixture credit and
biodiesel credit) is amended by adding at the end the following
new paragraph:
``(5) Small agri-biodiesel producer credit.--
``(A) In general.--The small agri-biodiesel
producer credit of any eligible small agri-
biodiesel producer for any taxable year is 10
cents for each gallon of qualified agri-
biodiesel production of such producer.
``(B) Qualified agri-biodiesel
production.--For purposes of this paragraph,
the term `qualified agri-biodiesel production'
means any agri-biodiesel (determined without
regard to the last sentence of subsection
(d)(2)) which is produced by an eligible small
agri-biodiesel producer, and which during the
taxable year--
``(i) is sold by such producer to
another person--
``(I) for use by such other
person in the production of a
qualified biodiesel mixture in
such other person's trade or
business (other than casual
off-farm production),
``(II) for use by such
other person as a fuel in a
trade or business, or
``(III) who sells such
agri-biodiesel at retail to
another person and places such
agri-biodiesel in the fuel tank
of such other person, or
``(ii) is used or sold by such
producer for any purpose described in
clause (i).
``(C) Limitation.--The qualified agri-
biodiesel production of any producer for any
taxable year shall not exceed 15,000,000
gallons.''.
(c) Definitions and Special Rules.--Section 40A is amended
by redesignating subsection (e) as subsection (f) and by
inserting after subsection (d) the following new subsection:
``(e) Definitions and Special Rules for Small Agri-
biodiesel Producer Credit.--For purposes of this section--
``(1) Eligible small agri-biodiesel producer.--The
term `eligible small agri-biodiesel producer' means a
person who, at all times during the taxable year, has a
productive capacity for agri-biodiesel not in excess of
60,000,000 gallons.
``(2) Aggregation rule.--For purposes of the
15,000,000 gallon limitation under subsection (b)(5)(C)
and the 60,000,000 gallon limitation under paragraph
(1), all members of the same controlled group of
corporations (within the meaning of section 267(f)) and
all persons under common control (within the meaning of
section 52(b) but determined by treating an interest of
more than 50 percent as a controlling interest) shall
be treated as 1 person.
``(3) Partnership, s corporation, and other pass-
thru entities.--In the case of a partnership, trust, S
corporation, or other pass-thru entity, the limitations
contained in subsection (b)(5)(C) and paragraph (1)
shall be applied at the entity level and at the partner
or similar level.
``(4) Allocation.--For purposes of this subsection,
in the case of a facility in which more than 1 person
has an interest, productive capacity shall be allocated
among such persons in such manner as the Secretary may
prescribe.
``(5) Regulations.--The Secretary may prescribe
such regulations as may be necessary--
``(A) to prevent the credit provided for in
subsection (a)(3) from directly or indirectly
benefiting any person with a direct or indirect
productive capacity of more than 60,000,000
gallons of agri-biodiesel during the taxable
year, or
``(B) to prevent any person from directly
or indirectly benefiting with respect to more
than 15,000,000 gallons during the taxable
year.
``(6) Allocation of small agri-biodiesel credit to
patrons of cooperative.--
``(A) Election to allocate.--
``(i) In general.--In the case of a
cooperative organization described in
section 1381(a), any portion of the
credit determined under subsection
(a)(3) for the taxable year may, at the
election of the organization, be
apportioned pro rata among patrons of
the organization on the basis of the
quantity or value of business done with
or for such patrons for the taxable
year.
``(ii) Form and effect of
election.--An election under clause (i)
for any taxable year shall be made on a
timely filed return for such year. Such
election, once made, shall be
irrevocable for such taxable year. Such
election shall not take effect unless
the organization designates the
apportionment as such in a written
notice mailed to its patrons during the
payment period described in section
1382(d).
``(B) Treatment of organizations and
patrons.--
``(i) Organizations.--The amount of
the credit not apportioned to patrons
pursuant to subparagraph (A) shall be
included in the amount determined under
subsection (a)(3) for the taxable year
of the organization.
``(ii) Patrons.--The amount of the
credit apportioned to patrons pursuant
to subparagraph (A) shall be included
in the amount determined under such
subsection for the first taxable year
of each patron ending on or after the
last day of the payment period (as
defined in section 1382(d)) for the
taxable year of the organization or, if
earlier, for the taxable year of each
patron ending on or after the date on
which the patron receives notice from
the cooperative of the apportionment.
``(iii) Special rules for decrease
in credits for taxable year.--If the
amount of the credit of the
organization determined under such
subsection for a taxable year is less
than the amount of such credit shown on
the return of the organization for such
year, an amount equal to the excess
of--
``(I) such reduction, over
``(II) the amount not
apportioned to such patrons
under subparagraph (A) for the
taxable year, shall be treated
as an increase in tax imposed
by this chapter on the
organization. Such increase
shall not be treated as tax
imposed by this chapter for
purposes of determining the
amount of any credit under this
chapter or for purposes of
section 55.''.
(d) Conforming Amendments.--
(1) Paragraph (4) of section 40A(b) is amended by
striking ``this section'' and inserting ``paragraph (1)
or (2) of subsection (a)''.
(2) The heading of subsection (b) of section 40A is
amended by striking ``and Biodiesel Credit'' and
inserting ``, Biodiesel Credit, and Small Agri-
biodiesel Producer Credit''.
(3) Paragraph (3) of section 40A(d) is amended by
redesignating subparagraph (C) as subparagraph (D) and
by inserting after subparagraph (B) the following new
subparagraph:
``(C) Producer credit.--If--
``(i) any credit was determined
under subsection (a)(3), and
``(ii) any person does not use such
fuel for a purpose described in
subsection (b)(5)(B), then there is
hereby imposed on such person a tax
equal to 10 cents a gallon for each
gallon of such agri-biodiesel.''.
(e) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 1346. RENEWABLE DIESEL.
(a) In General.--Section 40A (relating to biodiesel used as
fuel), as amended by this Act, is amended by redesignating
subsection (f) as subsection (g) and by inserting after
subsection (e) the following new subsection:
``(f) Renewable Diesel.--For purposes of this title--
``(1) Treatment in the same manner as biodiesel.--
Except as provided in paragraph (2), renewable diesel
shall be treated in the same manner as biodiesel.
``(2) Exceptions.--
``(A) Rate of credit.--Subsections
(b)(1)(A) and (b)(2)(A) shall be applied with
respect to renewable diesel by substituting
`$1.00' for `50 cents'.
``(B) Nonapplication of certain credits.--
Subsections (b)(3) and (b)(5) shall not apply
with respect to renewable diesel.
``(3) Renewable diesel defined.--The term
`renewable diesel' means diesel fuel derived from
biomass (as defined in section 45K(c)(3)) using a
thermal depolymerization process which meets--
``(A) 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
``(B) the requirements of the American
Society of Testing and Materials D975 or
D396.''.
(b) Clerical Amendments.--
(1) The heading for section 40A is amended by
inserting ``AND RENEWABLE DIESEL'' after ``BIODIESEL''.
(2) The item in the table of contents for subpart D
of part IV of subchapter A of chapter 1 relating to
section 40A is amended to read as follows:
``Sec. 40A. Biodiesel and renewable diesel used as fuel.''.
(c) Effective Date.--The amendment made by subsection (a)
shall apply with respect to fuel sold or used after December
31, 2005.
SEC. 1347. MODIFICATION OF SMALL ETHANOL PRODUCER CREDIT.
(a) Definition of Small Ethanol Producer.--Section 40(g)
(relating to definitions and special rules for eligible small
ethanol producer credit) is amended by striking ``30,000,000''
each place it appears and inserting ``60,000,000''.
(b) Written Notice of Election to Allocate Credit to
Patrons.--Section 40(g)(6)(A)(ii) (relating to form and effect
of election) is amended by adding at the end the following new
sentence: ``Such election shall not take effect unless the
organization designates the apportionment as such in a written
notice mailed to its patrons during the payment period
described in section 1382(d).''.
(c) Effective Date.--The amendments made by this section
shall apply to taxable years ending after the date of the
enactment of this Act.
SEC. 1348. SUNSET OF DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN
REFUELING PROPERTY.
Subsection (f) of section 179A (relating to termination) is
amended by striking ``December 31, 2006'' and inserting
``December 31, 2005''.
Subtitle E--Additional Energy Tax Incentives
SEC. 1351. EXPANSION OF RESEARCH CREDIT.
(a) Credit for Expenses Attributable to Certain
Collaborative Energy Research Consortia.--
(1) In general.--Section 41(a) (relating to credit
for increasing research activities) is amended by
striking ``and'' at the end of paragraph (1), by
striking the period at the end of paragraph (2) and
inserting ``, and'', and by adding at the end the
following new paragraph:
``(3) 20 percent of the amounts paid or incurred by
the taxpayer in carrying on any trade or business of
the taxpayer during the taxable year (including as
contributions) to an energy research consortium.''.
(2) Energy research consortium defined.--Section
41(f) (relating to special rules) is amended by adding
at the end the following new paragraph:
``(6) Energy research consortium.--
``(A) In general.--The term `energy
research consortium' means any organization--
``(i) which is--
``(I) described in section
501(c)(3) and is exempt from
tax under section 501(a) and is
organized and operated
primarily to conduct energy
research, or
``(II) organized and
operated primarily to conduct
energy research in the public
interest (within the meaning of
section 501(c)(3)),
``(ii) which is not a private
foundation,
``(iii) to which at least 5
unrelated persons paid or incurred
during the calendar year in which the
taxable year of the organization begins
amounts (including as contributions) to
such organization for energy research,
and
``(iv) to which no single person
paid or incurred (including as
contributions) during such calendar
year an amount equal to more than 50
percent of the total amounts received
by such organization during such
calendar year for energy research.
``(B) Treatment of persons.--All persons
treated as a single employer under subsection
(a) or (b) of section 52 shall be treated as
related persons for purposes of subparagraph
(A)(iii) and as a single person for purposes of
subparagraph (A)(iv).''.
(3) Conforming amendment.--Section 41(b)(3)(C) is
amended by inserting ``(other than an energy research
consortium)'' after ``organization''.
(b) Repeal of Limitation on Contract Research Expenses Paid
to Small Businesses, Universities, and Federal Laboratories.--
Section 41(b)(3) (relating to contract research expenses) is
amended by adding at the end the following new subparagraph:
``(D) Amounts paid to eligible small
businesses, universities, and federal
laboratories.--
``(i) In general.--In the case of
amounts paid by the taxpayer to--
``(I) an eligible small
business,
``(II) an institution of
higher education (as defined in
section 3304(f)), or
``(III) an organization
which is a Federal laboratory,
for qualified research which is energy
research, subparagraph (A) shall be
applied by substituting `100 percent'
for `65 percent'.
``(ii) Eligible small business.--
For purposes of this subparagraph, the
term `eligible small business' means a
small business with respect to which
the taxpayer does not own (within the
meaning of section 318) 50 percent or
more of--
``(I) in the case of a
corporation, the outstanding
stock of the corporation
(either by vote or value), and
``(II) in the case of a
small business which is not a
corporation, the capital and
profits interests of the small
business.
``(iii) Small business.--For
purposes of this subparagraph--
``(I) In general.--The term
`small business' means, with
respect to any calendar year,
any person if the annual
average number of employees
employed by such person during
either of the 2 preceding
calendar years was 500 or
fewer. For purposes of the
preceding sentence, a preceding
calendar year may be taken into
account only if the person was
in existence throughout the
year.
``(II) Startups, controlled
groups, and predecessors.--
Rules similar to the rules of
subparagraphs (B) and (D) of
section 220(c)(4) shall apply
for purposes of this clause.
``(iv) Federal laboratory.--For
purposes of this subparagraph, the term
`Federal laboratory' has the meaning
given such term by section 4(6) of the
Stevenson-Wydler Technology Innovation
Act of 1980 (15 U.S.C. 3703(6)), as in
effect on the date of the enactment of
the Energy Tax Incentives Act of
2005.''.
(c) Effective Date.--The amendments made by this section
shall apply to amounts paid or incurred after the date of the
enactment of this Act, in taxable years ending after such date.
SEC. 1352. NATIONAL ACADEMY OF SCIENCES STUDY AND REPORT.
(a) Study.--Not later than 60 days after the date of the
enactment of this Act, the Secretary of the Treasury shall
enter into an agreement with the National Academy of Sciences
under which the National Academy of Sciences shall conduct a
study to define and evaluate the health, environmental,
security, and infrastructure external costs and benefits
associated with the production and consumption of energy that
are not or may not be fully incorporated into the market price
of such energy, or into the Federal tax or fee or other
applicable revenue measure related to such production or
consumption.
(b) Report.--Not later than 2 years after the date on which
the agreement under subsection (a) is entered into, the
National Academy of Sciences shall submit to Congress a report
on the study conducted under subsection (a).
SEC. 1353. RECYCLING STUDY.
(a) Study.--The Secretary of the Treasury, in consultation
with the Secretary of Energy, shall conduct a study--
(1) to determine and quantify the energy savings
achieved through the recycling of glass, paper,
plastic, steel, aluminum, and electronic devices, and
(2) to identify tax incentives which would
encourage recycling of such material.
(b) Report.--Not later than one year after the date of the
enactment of this Act, the Secretary of the Treasury shall
submit to Congress a report on the study conducted under
subsection (a).
Subtitle F--Revenue Raising Provisions
SEC. 1361. OIL SPILL LIABILITY TRUST FUND FINANCING RATE.
Section 4611(f) (relating to application of oil spill
liability trust fund financing rate) is amended to read as
follows:
``(f) Application of Oil Spill Liability Trust Fund
Financing Rate.--
``(1) In general.--Except as provided in paragraphs
(2) and (3), the Oil Spill Liability Trust Fund
financing rate under subsection (c) shall apply on and
after April 1, 2006, or if later, the date which is 30
days after the last day of any calendar quarter for
which the Secretary estimates that, as of the close of
that quarter, the unobligated balance in the Oil Spill
Liability Trust Fund is less than $2,000,000,000.
``(2) Fund balance.--The Oil Spill Liability Trust
Fund financing rate shall not apply during a calendar
quarter if the Secretary estimates that, as of the
close of the preceding calendar quarter, the
unobligated balance in the Oil Spill Liability Trust
Fund exceeds $2,700,000,000.
``(3) Termination.--The Oil Spill Liability Trust
Fund financing rate shall not apply after December 31,
2014.''.
SEC. 1362. EXTENSION OF LEAKING UNDERGROUND STORAGE TANK TRUST FUND
FINANCING RATE.
(a) In General.--Paragraph (3) of section 4081(d) (relating
to Leaking Underground Storage Tank Trust Fund financing rate)
is amended by striking ``2005'' and inserting ``2011''.
(b) No Exemptions From Tax Except for Exports.--
(1) In general.--Section 4082(a) (relating to
exemptions for diesel fuel and kerosene) is amended by
inserting ``(other than such tax at the Leaking
Underground Storage Tank Trust Fund financing rate
imposed in all cases other than for export)'' after
``section 4081''.
(2) Amendments relating to section 4041.--
(A) Subsections (a)(1)(B), (a)(2)(A), and
(c)(2) of section 4041 are each amended by
inserting ``(other than such tax at the Leaking
Underground Storage Tank Trust Fund financing
rate)'' after ``section 4081''.
(B) Section 4041(b)(1)(A) is amended by
striking ``or (d)(1))''.
(C) Section 4041(d) is amended by adding at
the end the following new paragraph:
``(5) Nonapplication of exemptions other than for
exports.--For purposes of this section, the tax imposed
under this subsection shall be determined without
regard to subsections (f), (g) (other than with respect
to any sale for export under paragraph (3) thereof),
(h), and (l).''.
(3) No refund.--
(A) In general.--Subchapter B of chapter 65
is amended by adding at the end the following
new section:
``SEC. 6430. TREATMENT OF TAX IMPOSED AT LEAKING UNDERGROUND STORAGE
TANK TRUST FUND FINANCING RATE.
``No refunds, credits, or payments shall be made under this
subchapter for any tax imposed at the Leaking Underground
Storage Tank Trust Fund financing rate, except in the case of
fuels destined for export.''.
(B) Clerical amendment.--The table of
sections for subchapter B of chapter 65 is
amended by adding at the end the following new
item:
``Sec. 6430. Treatment of tax imposed at Leaking Underground Storage
Tank Trust Fund financing rate.''.
(c) Certain Refunds and Credits Not Charged to LUST Trust
Fund.--Subsection (c) of section 9508 (relating to Leaking
Underground Storage Tank Trust Fund) is amended to read as
follows:
``(c) Expenditures.--Amounts in the Leaking Underground
Storage Tank Trust Fund shall be available, as provided in
appropriation Acts, only for purposes of making expenditures to
carry out section 9003(h) of the Solid Waste Disposal Act as in
effect on the date of the enactment of the Superfund Amendments
and Reauthorization Act of 1986.''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph
(2), the amendments made by this section shall take
effect on October 1, 2005.
(2) No exemption.--The amendments made by
subsection (b) shall apply to fuel entered, removed, or
sold after September 30, 2005.
SEC. 1363. MODIFICATION OF RECAPTURE RULES FOR AMORTIZABLE SECTION 197
INTANGIBLES.
(a) In General.--Subsection (b) of section 1245 (relating
to gain from dispositions of certain depreciable property) is
amended by adding at the end the following new paragraph:
``(9) Disposition of amortizable section 197
intangibles.--
``(A) In general.--If a taxpayer disposes
of more than 1 amortizable section 197
intangible (as defined in section 197(c)) in a
transaction or a series of related
transactions, all such amortizable 197
intangibles shall be treated as 1 section 1245
property for purposes of this section.
``(B) Exception.--Subparagraph (A) shall
not apply to any amortizable section 197
intangible (as so defined) with respect to
which the adjusted basis exceeds the fair
market value.''.
(b) Effective Date.--The amendment made by this section
shall apply to dispositions of property after the date of the
enactment of this Act.
SEC. 1364. CLARIFICATION OF TIRE EXCISE TAX.
(a) In General.--Section 4072(e) (defining super single
tire) is amended by adding at the end the following: ``Such
term shall not include any tire designed for steering.''
(b) Effective Date.--The amendment made by this section
shall take effect as if included in section 869 of the American
Jobs Creation Act of 2004.
(c) Study.--
(1) In general.--With respect to the 1-year period
beginning on January 1, 2006, the Secretary of the
Treasury shall conduct a study to determine--
(A) the amount of tax collected during such
period under section 4071 of the Internal
Revenue Code of 1986 with respect to each class
of tire, and
(B) the number of tires in each such class
on which tax is imposed under such section
during such period.
(2) Report.--Not later than July 1, 2007, the
Secretary of the Treasury shall submit to Congress a
report on the study conducted under paragraph (1).
TITLE XIV--MISCELLANEOUS
Subtitle A--In General
SEC. 1401. SENSE OF CONGRESS ON RISK ASSESSMENTS.
Subtitle B of title XXX of the Energy Policy Act of 1992 is
amended by adding at the end the following new section:
``SEC. 3022. SENSE OF CONGRESS ON RISK ASSESSMENTS.
``It is the sense of Congress that Federal agencies
conducting assessments of risks to human health and the
environment from energy technology, production, transport,
transmission, distribution, storage, use, or conservation
activities shall use sound and objective scientific practices
in assessing such risks, shall consider the best available
science (including peer reviewed studies), and shall include a
description of the weight of the scientific evidence concerning
such risks.''.
SEC. 1402. ENERGY PRODUCTION INCENTIVES.
(a) In General.--A State may provide to any entity--
(1) a credit against any tax or fee owed to the
State under a State law, or
(2) any other tax incentive,
determined by the State to be appropriate, in the amount
calculated under and in accordance with a formula determined by
the State, for production described in subsection (b) in the
State by the entity that receives such credit or such
incentive.
(b) Eligible Entities.--Subsection (a) shall apply with
respect to the production in the State of electricity from coal
mined in the State and used in a facility, if such production
meets all applicable Federal and State laws and if such
facility uses scrubbers or other forms of clean coal
technology.
(c) Effect on Interstate Commerce.--Any action taken by a
State in accordance with this section with respect to a tax or
fee payable, or incentive applicable, for any period beginning
after the date of the enactment of this Act shall--
(1) be considered to be a reasonable regulation of
commerce; and
(2) not be considered to impose an undue burden on
interstate commerce or to otherwise impair, restrain,
or discriminate, against interstate commerce.
SEC. 1403. REGULATION OF CERTAIN OIL USED IN TRANSFORMERS.
Notwithstanding any other provision of law, or rule
promulgated by the Environmental Protection Agency, vegetable
oil made from soybeans and used in electric transformers as
thermal insulation shall not be regulated as an oil identified
under section 2(a)(1)(B) of the Edible Oil Regulatory Reform
Act (33 U.S.C. 2720(a)(1)(B)).
SEC. 1404. PETROCHEMICAL AND OIL REFINERY FACILITY HEALTH ASSESSMENT.
(a) Establishment.--The Secretary shall conduct a study of
direct and significant health impacts to persons resulting from
living in proximity to petrochemical and oil refinery
facilities. The Secretary shall consult with the Director of
the National Cancer Institute and other Federal Government
bodies with expertise in the field it deems appropriate in the
design of such study. The study shall be conducted according to
sound and objective scientific practices and present the weight
of the scientific evidence. The Secretary shall obtain
scientific peer review of the draft study.
(b) Report to Congress.--The Secretary shall transmit the
results of the study to Congress within 6 months of the
enactment of this section.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for activities under this
section such sums as are necessary for the completion of the
study.
SEC. 1405. NATIONAL PRIORITY PROJECT DESIGNATION.
(a) Designation of National Priority Projects.--
(1) In general.--There is established the National
Priority Project Designation (referred to in this
section as the ``Designation''), which shall be
evidenced by a medal bearing the inscription ``National
Priority Project''.
(2) Design and materials.--The medal shall be of
such design and materials and bear such additional
inscriptions as the President may prescribe.
(b) Making and Presentation of Designation.--
(1) In general.--The President, on the basis of
recommendations made by the Secretary, shall annually
designate organizations that have--
(A) advanced the field of renewable energy
technology and contributed to North American
energy independence; and
(B) been certified by the Secretary under
subsection (e).
(2) Presentation.--The President shall designate
projects with such ceremonies as the President may
prescribe.
(3) Use of designation.--An organization that
receives a Designation under this section may publicize
the Designation of the organization as a National
Priority Project in advertising.
(4) Categories in which the designation may be
given.--Separate Designations shall be made to
qualifying projects in each of the following
categories:
(A) Wind and biomass energy generation
projects.
(B) Photovoltaic and fuel cell energy
generation projects.
(C) Energy efficient building and renewable
energy projects.
(D) First-in-Class projects.
(c) Selection Criteria.--
(1) In general.--Certification and selection of the
projects to receive the Designation shall be based on
criteria established under this subsection.
(2) Wind, biomass, and building projects.--In the
case of a wind, biomass, or building project, the
project shall demonstrate that the project will install
not less than 30 megawatts of renewable energy
generation capacity.
(3) Solar photovoltaic and fuel cell projects.--In
the case of a solar photovoltaic or fuel cell project,
the project shall demonstrate that the project will
install not less than 3 megawatts of renewable energy
generation capacity.
(4) Energy efficient building and renewable energy
projects.--In the case of an energy efficient building
or renewable energy project, in addition to meeting the
criteria established under paragraph (2), each building
project shall demonstrate that the project will--
(A) comply with third-party certification
standards for high-performance, sustainable
buildings;
(B) use whole-building integration of
energy efficiency and environmental performance
design and technology, including advanced
building controls;
(C) use renewable energy for at least 50
percent of the energy consumption of the
project;
(D) comply with applicable Energy Star
standards; and
(E) include at least 5,000,000 square feet
of enclosed space.
(5) First-in-class use.--Notwithstanding paragraphs
(2) through (4), a new building project may qualify
under this section if the Secretary determines that the
project--
(A) represents a First-In-Class use of
renewable energy; or
(B) otherwise establishes a new paradigm of
building integrated renewable energy use or
energy efficiency.
(d) Application.--
(1) Initial applications.--No later than 120 days
after the date of enactment of this Act, and annually
thereafter, the Secretary shall publish in the Federal
Register an invitation and guidelines for submitting
applications, consistent with this section.
(2) Contents.--The application shall describe the
project, or planned project, and the plans to meet the
criteria established under subsection (c).
(e) Certification.--
(1) In general.--Not later than 60 days after the
application period described in subsection (d), and
annually thereafter, the Secretary shall certify
projects that are reasonably expected to meet the
criteria established under subsection (c).
(2) Certified projects.--The Secretary shall
designate personnel of the Department to work with
persons carrying out each certified project and ensure
that the personnel--
(A) provide each certified project with
guidance in meeting the criteria established
under subsection (c);
(B) identify programs of the Department,
including National Laboratories and Technology
Centers, that will assist each project in
meeting the criteria established under
subsection (c); and
(C) ensure that knowledge and transfer of
the most current technology between the
applicable resources of the Federal Government
(including the National Laboratories and
Technology Centers, the Department, and the
Environmental Protection Agency) and the
certified projects is being facilitated to
accelerate commercialization of work developed
through those resources.
(f) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section for each of fiscal years 2006 through 2010.
SEC. 1406. COLD CRACKING.
(a) Study.--The Secretary shall conduct a study of the
application of radiation to petroleum at standard temperature
and pressure to refine petroleum products, whose objective
shall be to increase the economic yield from each barrel of
oil.
(b) Goals.--The goals of the study shall include--
(1) increasing the value of our current oil supply;
(2) reducing the capital investment cost for
cracking oil;
(3) reducing the operating energy cost for cracking
oil; and
(4) reducing sulfur content using an
environmentally responsible method.
(c) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $250,000 for
fiscal year 2006.
SEC. 1407. OXYGEN-FUEL.
(a) Program.--The Secretary shall establish a program on
oxygen-fuel systems. If feasible, the program shall include
renovation of at least one existing large unit and one existing
small unit, and construction of one new large unit and one new
small unit.
(b) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section--
(1) $100,000,000 for fiscal year 2006;
(2) $100,000,000 for fiscal year 2007; and
(3) $100,000,000 for fiscal year 2008.
(c) Definitions.--For purposes of this section--
(1) the term ``large unit'' means a unit with a
generating capacity of 100 megawatts or more;
(2) the term ``oxygen-fuel systems'' means systems
that utilize fuel efficiency benefits of oil, gas,
coal, and biomass combustion using substantially pure
oxygen, with high flame temperatures and the exclusion
of air from the boiler, in industrial or electric
utility steam generating units; and
(3) the term ``small unit'' means a unit with a
generating capacity in the 10-50 megawatt range.
Subtitle B--Set America Free
SEC. 1421. SHORT TITLE.
This subtitle may be cited as the ``Set America Free Act of
2005'' or the ``SAFE Act''.
SEC. 1422. PURPOSE.
The purpose of this subtitle is to establish a United
States commission to make recommendations for a coordinated and
comprehensive North American energy policy that will achieve
energy self-sufficiency by 2025 within the three contiguous
North American nation area of Canada, Mexico, and the United
States.
SEC. 1423. UNITED STATES COMMISSION ON NORTH AMERICAN ENERGY FREEDOM.
(a) Establishment.--There is hereby established the United
States Commission on North American Energy Freedom (in this
subtitle referred to as the ``Commission''). The Federal
Advisory Committee Act (5 U.S.C. App.), except sections 3, 7,
and 12, does not apply to the Commission.
(b) Membership.--
(1) Appointment.--The Commission shall be composed
of 16 members appointed by the President from among
individuals described in paragraph (2) who are
knowledgeable on energy issues, including oil and gas
exploration and production, crude oil refining, oil and
gas pipelines, electricity production and transmission,
coal, unconventional hydrocarbon resources, fuel cells,
motor vehicle power systems, nuclear energy, renewable
energy, biofuels, energy efficiency, and energy
conservation. The membership of the Commission shall be
balanced by area of expertise to the extent consistent
with maintaining the highest level of expertise on the
Commission. Members of the Commission may be citizens
of Canada, Mexico, or the United States, and the
President shall ensure that citizens of all three
nations are appointed to the Commission.
(2) Nominations.--The President shall appoint the
members of the Commission within 60 days after the
effective date of this Act, including individuals
nominated as follows:
(A) Four members shall be appointed from
amongst individuals independently determined by
the President to be qualified for appointment.
(B) Four members shall be appointed from a
list of eight individuals who shall be
nominated by the majority leader of the Senate
in consultation with the chairman of the
Committee on Energy and Natural Resources of
the Senate.
(C) Four members shall be appointed from a
list of eight individuals who shall be
nominated by the Speaker of the House of
Representatives in consultation with the
chairmen of the Committees on Energy and
Commerce and Resources of the House of
Representatives.
(D) Two members shall be appointed from a
list of four individuals who shall be nominated
by the minority leader of the Senate in
consultation with the ranking Member of the
Committee on Energy and Natural Resources of
the Senate.
(E) Two members shall be appointed from a
list of four individuals who shall be nominated
by the minority leader of the House in
consultation with the ranking Members of the
Committees on Energy and Commerce and Resources
of the House of Representatives.
(3) Chairman.--The chairman of the Commission shall
be selected by the President. The chairman of the
Commission shall be responsible for--
(A) the assignment of duties and
responsibilities among staff personnel and
their continuing supervision; and
(B) the use and expenditure of funds
available to the Commission.
(4) Vacancies.--Any vacancy on the Commission shall
be filled in the same manner as the original incumbent
was appointed.
(c) Resources.--In carrying out its functions under this
section, the Commission--
(1) is authorized to secure directly from any
Federal agency or department any information it deems
necessary to carry out its functions under this Act,
and each such agency or department is authorized to
cooperate with the Commission and, to the extent
permitted by law, to furnish such information (other
than information described in section 552(b)(1)(A) of
title 5, United States Code) to the Commission, upon
the request of the Commission;
(2) may enter into contracts, subject to the
availability of appropriations for contracting, and
employ such staff experts and consultants as may be
necessary to carry out the duties of the Commission, as
provided by section 3109 of title 5, United States
Code; and
(3) shall establish a multidisciplinary science and
technical advisory panel of experts in the field of
energy to assist the Commission in preparing its
report, including ensuring that the scientific and
technical information considered by the Commission is
based on the best scientific and technical information
available.
(d) Staffing.--The chairman of the Commission may, without
regard to the civil service laws and regulations, appoint and
terminate an executive director and such other additional
personnel as may be necessary for the Commission to perform its
duties. The executive director shall be compensated at a rate
not to exceed the rate payable for Level IV of the Executive
Schedule under chapter 5136 of title 5, United States Code. The
chairman shall select staff from among qualified citizens of
Canada, Mexico, and the United States of America.
(e) Meetings.--
(1) Administration.--All meetings of the Commission
shall be open to the public, except that a meeting or
any portion of it may be closed to the public if it
concerns matters or information described in section
552b(c) of title 5, United States Code. Interested
persons shall be permitted to appear at open meetings
and present oral or written statements on the subject
matter of the meeting. The Commission may administer
oaths or affirmations to any person appearing before
it.
(2) Notice; minutes; public availability of
documents.--
(A) Notice.--All open meetings of the
Commission shall be preceded by timely public
notice in the Federal Register of the time,
place, and subject of the meeting.
(B) Minutes.--Minutes of each meeting shall
be kept and shall contain a record of the
people present, a description of the discussion
that occurred, and copies of all statements
filed. Subject to section 552 of title 5,
United States Code, the minutes and records of
all meetings and other documents that were made
available to or prepared for the Commission
shall be available for public inspection and
copying at a single location in the offices of
the Commission.
(3) Initial meeting.--The Commission shall hold its
first meeting within 30 days after all 16 members have
been appointed.
(f) Report.--Within 12 months after the effective date of
this Act, the Commission shall submit to Congress and the
President a final report of its findings and recommendations
regarding North American energy freedom.
(g) Administrative Procedure for Report and Review.--
Chapter 5 and chapter 7 of title 5, United States Code, do not
apply to the preparation, review, or submission of the report
required by subsection (f).
(h) Termination.--The Commission shall cease to exist 90
days after the date on which it submits its final report.
(i) Authorization of Appropriations.--There is authorized
to be appropriated to carry out this chapter a total of
$10,000,000 for the 2 fiscal-year period beginning with fiscal
year 2005, such sums to remain available until expended.
SEC. 1424. NORTH AMERICAN ENERGY FREEDOM POLICY.
Within 90 days after receiving and considering the report
and recommendations of the Commission under section 1423, the
President shall submit to Congress a statement of proposals to
implement or respond to the Commission's recommendations for a
coordinated, comprehensive, and long-range national policy to
achieve North American energy freedom by 2025.
TITLE XV--ETHANOL AND MOTOR FUELS
Subtitle A--General Provisions
SEC. 1501. RENEWABLE CONTENT OF GASOLINE.
(a) In General.--Section 211 of the Clean Air Act (42
U.S.C. 7545) is amended--
(1) by redesignating subsection (o) as subsection
(r); and
(2) by inserting after subsection (n) the
following:
``(o) Renewable Fuel Program.--
``(1) Definitions.--In this section:
``(A) Cellulosic biomass ethanol.--The term
`cellulosic biomass ethanol' means ethanol
derived from any lignocellulosic or
hemicellulosic matter that is available on a
renewable or recurring basis, including--
``(i) dedicated energy crops and
trees;
``(ii) wood and wood residues;
``(iii) plants;
``(iv) grasses;
``(v) agricultural residues;
``(vi) fibers;
``(vii) animal wastes and other
waste materials; and
``(viii) municipal solid waste.
The term also includes any ethanol produced in
facilities where animal wastes or other waste
materials are digested or otherwise used to
displace 90 percent or more of the fossil fuel
normally used in the production of ethanol.
``(B) Waste derived ethanol.--The term
`waste derived ethanol' means ethanol derived
from--
``(i) animal wastes, including
poultry fats and poultry wastes, and
other waste materials; or
``(ii) municipal solid waste.
``(C) Renewable fuel.--
``(i) In general.--The term
`renewable fuel' means motor vehicle
fuel that--
``(I)(aa) is produced from
grain, starch, oilseeds,
vegetable, animal, or fish
materials including fats,
greases, and oils, sugarcane,
sugar beets, sugar components,
tobacco, potatoes, or other
biomass; or
``(bb) is natural gas
produced from a biogas source,
including a landfill, sewage
waste treatment plant, feedlot,
or other place where decaying
organic material is found; and
``(II) is used to replace
or reduce the quantity of
fossil fuel present in a fuel
mixture used to operate a motor
vehicle.
``(ii) Inclusion.--The term
`renewable fuel' includes--
``(I) cellulosic biomass
ethanol and `waste derived
ethanol'; and
``(II) biodiesel (as
defined in section 312(f) of
the Energy Policy Act of 1992
(42 U.S.C. 13220(f))) and any
blending components derived
from renewable fuel (provided
that only the renewable fuel
portion of any such blending
component shall be considered
part of the applicable volume
under the renewable fuel
program established by this
subsection).
``(D) Small refinery.--The term `small
refinery' means a refinery for which the
average aggregate daily crude oil throughput
for a calendar year (as determined by dividing
the aggregate throughput for the calendar year
by the number of days in the calendar year)
does not exceed 75,000 barrels.
``(2) Renewable fuel program.--
``(A) Regulations.--
``(i) In general.--Not later than 1
year after the date of enactment of
this paragraph, the Administrator shall
promulgate regulations to ensure that
gasoline sold or introduced into
commerce in the United States (except
in noncontiguous States or
territories), on an annual average
basis, contains the applicable volume
of renewable fuel determined in
accordance with subparagraph (B).
``(ii) Noncontiguous state opt-
in.--
``(I) In general.--On the
petition of a noncontiguous
State or territory, the
Administrator may allow the
renewable fuel program
established under this
subsection to apply in the
noncontiguous State or
territory at the same time or
any time after the
Administrator promulgates
regulations under this
subparagraph.
``(II) Other actions.--In
carrying out this clause, the
Administrator may--
``(aa) issue or
revise regulations
under this paragraph;
``(bb) establish
applicable percentages
under paragraph (3);
``(cc) provide for
the generation of
credits under paragraph
(5); and
``(dd) take such
other actions as are
necessary to allow for
the application of the
renewable fuels program
in a noncontiguous
State or territory.
``(iii) Provisions of
regulations.--Regardless of the date of
promulgation, the regulations
promulgated under clause (i)--
``(I) shall contain
compliance provisions
applicable to refineries,
blenders, distributors, and
importers, as appropriate, to
ensure that the requirements of
this paragraph are met; but
``(II) shall not--
``(aa) restrict
geographic areas in
which renewable fuel
may be used; or
``(bb) impose any
per-gallon obligation
for the use of
renewable fuel.
``(iv) Requirement in case of
failure to promulgate regulations.--If
the Administrator does not promulgate
regulations under clause (i), the
percentage of renewable fuel in
gasoline sold or dispensed to consumers
in the United States, on a volume
basis, shall be 2.78 percent for
calendar year 2006.
``(B) Applicable volume.--
``(i) Calendar years 2006 through
2012.--For the purpose of subparagraph
(A), the applicable volume for any of
calendar years 2006 through 2012 shall
be determined in accordance with the
following table:
Applicable volume of renewable fuel
``Calendar year: (in billions of gallons):
2006...................................................... 4.0
2007...................................................... 4.7
2008...................................................... 5.4
2009...................................................... 6.1
2010...................................................... 6.8
2011...................................................... 7.4
2012...................................................... 7.5.
``(ii) Calendar year 2013 and
thereafter.--Subject to clauses (iii)
and (iv), for the purposes of
subparagraph (A), the applicable volume
for calendar year 2013 and each
calendar year thereafter shall be
determined by the Administrator, in
coordination with the Secretary of
Agriculture and the Secretary of
Energy, based on a review of the
implementation of the program during
calendar years 2006 through 2012,
including a review of--
``(I) the impact of the use
of renewable fuels on the
environment, air quality,
energy security, job creation,
and rural economic development;
and
``(II) the expected annual
rate of future production of
renewable fuels, including
cellulosic ethanol.
``(iii) Minimum quantity derived
from cellulosic biomass.--For calendar
year 2013 and each calendar year
thereafter--
``(I) the applicable volume
referred to in clause (ii)
shall contain a minimum of
250,000,000 gallons that are
derived from cellulosic
biomass; and
``(II) the 2.5-to-1 ratio
referred to in paragraph (4)
shall not apply.
``(iv) Minimum applicable volume.--
For the purpose of subparagraph (A),
the applicable volume for calendar year
2013 and each calendar year thereafter
shall be equal to the product obtained
by multiplying--
``(I) the number of gallons
of gasoline that the
Administrator estimates will be
sold or introduced into
commerce in the calendar year;
and
``(II) the ratio that--
``(aa)
7,500,000,000 gallons
of renewable fuel;
bears to
``(bb) the number
of gallons of gasoline
sold or introduced into
commerce in calendar
year 2012.
``(3) Applicable percentages.--
``(A) Provision of estimate of volumes of
gasoline sales.--Not later than October 31 of
each of calendar years 2005 through 2011, the
Administrator of the Energy Information
Administration shall provide to the
Administrator of the Environmental Protection
Agency an estimate, with respect to the
following calendar year, of the volumes of
gasoline projected to be sold or introduced
into commerce in the United States.
``(B) Determination of applicable
percentages.--
``(i) In general.--Not later than
November 30 of each of calendar years
2005 through 2012, based on the
estimate provided under subparagraph
(A), the Administrator of the
Environmental Protection Agency shall
determine and publish in the Federal
Register, with respect to the following
calendar year, the renewable fuel
obligation that ensures that the
requirements of paragraph (2) are met.
``(ii) Required elements.--The
renewable fuel obligation determined
for a calendar year under clause (i)
shall--
``(I) be applicable to
refineries, blenders, and
importers, as appropriate;
``(II) be expressed in
terms of a volume percentage of
gasoline sold or introduced
into commerce in the United
States; and
``(III) subject to
subparagraph (C)(i), consist of
a single applicable percentage
that applies to all categories
of persons specified in
subclause (I).
``(C) Adjustments.--In determining the
applicable percentage for a calendar year, the
Administrator shall make adjustments--
``(i) to prevent the imposition of
redundant obligations on any person
specified in subparagraph (B)(ii)(I);
and
``(ii) to account for the use of
renewable fuel during the previous
calendar year by small refineries that
are exempt under paragraph (9).
``(4) Cellulosic biomass ethanol or waste derived
ethanol.--For the purpose of paragraph (2), 1 gallon of
cellulosic biomass ethanol or waste derived ethanol
shall be considered to be the equivalent of 2.5 gallons
of renewable fuel.
``(5) Credit program.--
``(A) In general.--The regulations
promulgated under paragraph (2)(A) shall
provide--
``(i) for the generation of an
appropriate amount of credits by any
person that refines, blends, or imports
gasoline that contains a quantity of
renewable fuel that is greater than the
quantity required under paragraph (2);
``(ii) for the generation of an
appropriate amount of credits for
biodiesel; and
``(iii) for the generation of
credits by small refineries in
accordance with paragraph (9)(C).
``(B) Use of credits.--A person that
generates credits under subparagraph (A) may
use the credits, or transfer all or a portion
of the credits to another person, for the
purpose of complying with paragraph (2).
``(C) Duration of credits.--A credit
generated under this paragraph shall be valid
to show compliance for the 12 months as of the
date of generation.
``(D) Inability to generate or purchase
sufficient credits.--The regulations
promulgated under paragraph (2)(A) shall
include provisions allowing any person that is
unable to generate or purchase sufficient
credits to meet the requirements of paragraph
(2) to carry forward a renewable fuel deficit
on condition that the person, in the calendar
year following the year in which the renewable
fuel deficit is created--
``(i) achieves compliance with the
renewable fuel requirement under
paragraph (2); and
``(ii) generates or purchases
additional renewable fuel credits to
offset the renewable fuel deficit of
the previous year.
``(6) Seasonal variations in renewable fuel use.--
``(A) Study.--For each of calendar years
2006 through 2012, the Administrator of the
Energy Information Administration shall conduct
a study of renewable fuel blending to determine
whether there are excessive seasonal variations
in the use of renewable fuel.
``(B) Regulation of excessive seasonal
variations.--If, for any calendar year, the
Administrator of the Energy Information
Administration, based on the study under
subparagraph (A), makes the determinations
specified in subparagraph (C), the
Administrator of the Environmental Protection
Agency shall promulgate regulations to ensure
that 25 percent or more of the quantity of
renewable fuel necessary to meet the
requirements of paragraph (2) is used during
each of the 2 periods specified in subparagraph
(D) of each subsequent calendar year.
``(C) Determinations.--The determinations
referred to in subparagraph (B) are that--
``(i) less than 25 percent of the
quantity of renewable fuel necessary to
meet the requirements of paragraph (2)
has been used during 1 of the 2 periods
specified in subparagraph (D) of the
calendar year;
``(ii) a pattern of excessive
seasonal variation described in clause
(i) will continue in subsequent
calendar years; and
``(iii) promulgating regulations or
other requirements to impose a 25
percent or more seasonal use of
renewable fuels will not prevent or
interfere with the attainment of
national ambient air quality standards
or significantly increase the price of
motor fuels to the consumer.
``(D) Periods.--The 2 periods referred to
in this paragraph are--
``(i) April through September; and
``(ii) January through March and
October through December.
``(E) Exclusion.--Renewable fuel blended or
consumed in calendar year 2006 in a State that
has received a waiver under section 209(b)
shall not be included in the study under
subparagraph (A).
``(F) State exemption from seasonality
requirements.--Notwithstanding any other
provision of law, the seasonality requirement
relating to renewable fuel use established by
this paragraph shall not apply to any State
that has received a waiver under section 209(b)
or any State dependent on refineries in such
State for gasoline supplies.
``(7) Waivers.--
``(A) In general.--The Administrator, in
consultation with the Secretary of Agriculture
and the Secretary of Energy, may waive the
requirements of paragraph (2) in whole or in
part on petition by 1 or more States by
reducing the national quantity of renewable
fuel required under paragraph (2)--
``(i) based on a determination by
the Administrator, after public notice
and opportunity for comment, that
implementation of the requirement would
severely harm the economy or
environment of a State, a region, or
the United States; or
``(ii) based on a determination by
the Administrator, after public notice
and opportunity for comment, that there
is an inadequate domestic supply.
``(B) Petitions for waivers.--The
Administrator, in consultation with the
Secretary of Agriculture and the Secretary of
Energy, shall approve or disapprove a State
petition for a waiver of the requirements of
paragraph (2) within 90 days after the date on
which the petition is received by the
Administrator.
``(C) Termination of waivers.--A waiver
granted under subparagraph (A) shall terminate
after 1 year, but may be renewed by the
Administrator after consultation with the
Secretary of Agriculture and the Secretary of
Energy.
``(8) Study and waiver for initial year of
program.--
``(A) In general.--Not later than 180 days
after the date of enactment of this paragraph,
the Secretary of Energy shall conduct for the
Administrator a study assessing whether the
renewable fuel requirement under paragraph (2)
will likely result in significant adverse
impacts on consumers in 2006, on a national,
regional, or State basis.
``(B) Required evaluations.--The study
shall evaluate renewable fuel--
``(i) supplies and prices;
``(ii) blendstock supplies; and
``(iii) supply and distribution
system capabilities.
``(C) Recommendations by the secretary.--
Based on the results of the study, the
Secretary of Energy shall make specific
recommendations to the Administrator concerning
waiver of the requirements of paragraph (2), in
whole or in part, to prevent any adverse
impacts described in subparagraph (A).
``(D) Waiver.--
``(i) In general.--Not later than
270 days after the date of enactment of
this paragraph, the Administrator
shall, if and to the extent recommended
by the Secretary of Energy under
subparagraph (C), waive, in whole or in
part, the renewable fuel requirement
under paragraph (2) by reducing the
national quantity of renewable fuel
required under paragraph (2) in
calendar year 2006.
``(ii) No effect on waiver
authority.--Clause (i) does not limit
the authority of the Administrator to
waive the requirements of paragraph (2)
in whole, or in part, under paragraph
(7).
``(9) Small refineries.--
``(A) Temporary exemption.--
``(i) In general.--The requirements
of paragraph (2) shall not apply to
small refineries until calendar year
2011.
``(ii) Extension of exemption.--
``(I) Study by secretary of
energy.--Not later than
December 31, 2008, the
Secretary of Energy shall
conduct for the Administrator a
study to determine whether
compliance with the
requirements of paragraph (2)
would impose a disproportionate
economic hardship on small
refineries.
``(II) Extension of
exemption.--In the case of a
small refinery that the
Secretary of Energy determines
under subclause (I) would be
subject to a disproportionate
economic hardship if required
to comply with paragraph (2),
the Administrator shall extend
the exemption under clause (i)
for the small refinery for a
period of not less than 2
additional years.
``(B) Petitions based on disproportionate
economic hardship.--
``(i) Extension of exemption.--A
small refinery may at any time petition
the Administrator for an extension of
the exemption under subparagraph (A)
for the reason of disproportionate
economic hardship.
``(ii) Evaluation of petitions.--In
evaluating a petition under clause (i),
the Administrator, in consultation with
the Secretary of Energy, shall consider
the findings of the study under
subparagraph (A)(ii) and other economic
factors.
``(iii) Deadline for action on
petitions.--The Administrator shall act
on any petition submitted by a small
refinery for a hardship exemption not
later than 90 days after the date of
receipt of the petition.
``(C) Credit program.--If a small refinery
notifies the Administrator that the small
refinery waives the exemption under
subparagraph (A), the regulations promulgated
under paragraph (2)(A) shall provide for the
generation of credits by the small refinery
under paragraph (5) beginning in the calendar
year following the date of notification.
``(D) Opt-in for small refineries.--A small
refinery shall be subject to the requirements
of paragraph (2) if the small refinery notifies
the Administrator that the small refinery
waives the exemption under subparagraph (A).
``(10) Ethanol market concentration analysis.--
``(A) Analysis.--
``(i) In general.--Not later than
180 days after the date of enactment of
this paragraph, and annually
thereafter, the Federal Trade
Commission shall perform a market
concentration analysis of the ethanol
production industry using the
Herfindahl-Hirschman Index to determine
whether there is sufficient competition
among industry participants to avoid
price-setting and other anticompetitive
behavior.
``(ii) Scoring.--For the purpose of
scoring under clause (i) using the
Herfindahl-Hirschman Index, all
marketing arrangements among industry
participants shall be considered.
``(B) Report.--Not later than December 1,
2005, and annually thereafter, the Federal
Trade Commission shall submit to Congress and
the Administrator a report on the results of
the market concentration analysis performed
under subparagraph (A)(i).''.
(b) Penalties and Enforcement.--Section 211(d) of the Clean
Air Act (42 U.S.C. 7545(d)) is amended--
(1) in paragraph (1)--
(A) in the first sentence, by striking ``or
(n)'' each place it appears and inserting
``(n), or (o)''; and
(B) in the second sentence, by striking
``or (m)'' and inserting ``(m), or (o)''; and
(2) in the first sentence of paragraph (2), by
striking ``and (n)'' each place it appears and
inserting ``(n), and (o)''.
(c) Exclusion From Ethanol Waiver.--Section 211(h) of the
Clean Air Act (42 U.S.C. 7545(h)) is amended--
(1) by redesignating paragraph (5) as paragraph
(6); and
(2) by inserting after paragraph (4) the following:
``(5) Exclusion from ethanol waiver.--
``(A) Promulgation of regulations.--Upon
notification, accompanied by supporting
documentation, from the Governor of a State
that the Reid vapor pressure limitation
established by paragraph (4) will increase
emissions that contribute to air pollution in
any area in the State, the Administrator shall,
by regulation, apply, in lieu of the Reid vapor
pressure limitation established by paragraph
(4), the Reid vapor pressure limitation
established by paragraph (1) to all fuel blends
containing gasoline and 10 percent denatured
anhydrous ethanol that are sold, offered for
sale, dispensed, supplied, offered for supply,
transported, or introduced into commerce in the
area during the high ozone season.
``(B) Deadline for promulgation.--The
Administrator shall promulgate regulations
under subparagraph (A) not later than 90 days
after the date of receipt of a notification
from a Governor under that subparagraph.
``(C) Effective date.--
``(i) In general.--With respect to
an area in a State for which the
Governor submits a notification under
subparagraph (A), the regulations under
that subparagraph shall take effect on
the later of--
``(I) the first day of the
first high ozone season for the
area that begins after the date
of receipt of the notification;
or
``(II) 1 year after the
date of receipt of the
notification.
``(ii) Extension of effective date
based on determination of insufficient
supply.--
``(I) In general.--If,
after receipt of a notification
with respect to an area from a
Governor of a State under
subparagraph (A), the
Administrator determines, on
the Administrator's own motion
or on petition of any person
and after consultation with the
Secretary of Energy, that the
promulgation of regulations
described in subparagraph (A)
would result in an insufficient
supply of gasoline in the
State, the Administrator, by
regulation--
``(aa) shall extend
the effective date of
the regulations under
clause (i) with respect
to the area for not
more than 1 year; and
``(bb) may renew
the extension under
item (aa) for 2
additional periods,
each of which shall not
exceed 1 year.
``(II) Deadline for action
on petitions.--The
Administrator shall act on any
petition submitted under
subclause (I) not later than
180 days after the date of
receipt of the petition.''.
(d) Survey of Renewable Fuel Market.--
(1) Survey and report.--Not later than December 1,
2006, and annually thereafter, the Administrator of the
Environmental Protection Agency (in consultation with
the Secretary acting through the Administrator of the
Energy Information Administration) shall--
(A) conduct, with respect to each
conventional gasoline use area and each
reformulated gasoline use area in each State, a
survey to determine the market shares of--
(i) conventional gasoline
containing ethanol;
(ii) reformulated gasoline
containing ethanol;
(iii) conventional gasoline
containing renewable fuel; and
(iv) reformulated gasoline
containing renewable fuel; and
(B) submit to Congress, and make publicly
available, a report on the results of the
survey under subparagraph (A).
(2) Recordkeeping and reporting requirements.--The
Administrator of the Environmental Protection Agency
(hereinafter in this subsection referred to as the
``Administrator'') may require any refiner, blender, or
importer to keep such records and make such reports as
are necessary to ensure that the survey conducted under
paragraph (1) is accurate. The Administrator, to avoid
duplicative requirements, shall rely, to the extent
practicable, on existing reporting and recordkeeping
requirements and other information available to the
Administrator including gasoline distribution patterns
that include multistate use areas.
(3) Applicable law.--Activities carried out under
this subsection shall be conducted in a manner designed
to protect confidentiality of individual responses.
SEC. 1502. FINDINGS.
Congress finds that--
(1) since 1979, methyl tertiary butyl ether
(hereinafter in this section referred to as ``MTBE'')
has been used nationwide at low levels in gasoline to
replace lead as an octane booster or anti-knocking
agent;
(2) Public Law 101-549 (commonly known as the
``Clean Air Act Amendments of 1990'') (42 U.S.C. 7401
et seq.) established a fuel oxygenate standard under
which reformulated gasoline must contain at least 2
percent oxygen by weight; and
(3) the fuel industry responded to the fuel
oxygenate standard established by Public Law 101-549 by
making substantial investments in--
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing
gasoline to the marketplace.
SEC. 1503. CLAIMS FILED AFTER ENACTMENT.
Claims and legal actions filed after the date of enactment
of this Act related to allegations involving actual or
threatened contamination of methyl tertiary butyl ether (MTBE)
may be removed to the appropriate United States district court.
SEC. 1504. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED
GASOLINE.
(a) Elimination.--
(1) In general.--Section 211(k) of the Clean Air
Act (42 U.S.C. 7545(k)) is amended--
(A) in paragraph (2)--
(i) in the second sentence of
subparagraph (A), by striking
``(including the oxygen content
requirement contained in subparagraph
(B))'';
(ii) by striking subparagraph (B);
and
(iii) by redesignating
subparagraphs (C) and (D) as
subparagraphs (B) and (C),
respectively;
(B) in paragraph (3)(A), by striking clause
(v); and
(C) in paragraph (7)--
(i) in subparagraph (A)--
(I) by striking clause (i);
and
(II) by redesignating
clauses (ii) and (iii) as
clauses (i) and (ii),
respectively; and
(ii) in subparagraph (C)--
(I) by striking clause
(ii); and
(II) by redesignating
clause (iii) as clause (ii).
(2) Applicability.--The amendments made by
paragraph (1) apply--
(A) in the case of a State that has
received a waiver under section 209(b) of the
Clean Air Act (42 U.S.C. 7543(b)), beginning on
the date of enactment of this Act; and
(B) in the case of any other State,
beginning 270 days after the date of enactment
of this Act.
(b) Maintenance of Toxic Air Pollutant Emission
Reductions.--Section 211(k)(1) of the Clean Air Act (42 U.S.C.
7545(k)(1)) is amended--
(1) by striking ``Within 1 year after the enactment
of the Clean Air Act Amendments of 1990,'' and
inserting the following:
``(A) In general.--Not later than November
15, 1991,''; and
(2) by adding at the end the following:
``(B) Maintenance of toxic air pollutant
emissions reductions from reformulated
gasoline.--
``(i) Definition of padd.--In this
subparagraph the term `PADD' means a
Petroleum Administration for Defense
District.
``(ii) Regulations concerning
emissions of toxic air pollutants.--Not
later than 270 days after the date of
enactment of this subparagraph, the
Administrator shall establish by
regulation, for each refinery or
importer (other than a refiner or
importer in a State that has received a
waiver under section 209(b) with
respect to gasoline produced for use in
that State), standards for toxic air
pollutants from use of the reformulated
gasoline produced or distributed by the
refiner or importer that maintain the
reduction of the average annual
aggregate emissions of toxic air
pollutants for reformulated gasoline
produced or distributed by the refiner
or importer during calendar years 2001
and 2002 (as determined on the basis of
data collected by the Administrator
with respect to the refiner or
importer).
``(iii) Standards applicable to
specific refineries or importers.--
``(I) Applicability of
standards.--For any calendar
year, the standards applicable
to a refiner or importer under
clause (ii) shall apply to the
quantity of gasoline produced
or distributed by the refiner
or importer in the calendar
year only to the extent that
the quantity is less than or
equal to the average annual
quantity of reformulated
gasoline produced or
distributed by the refiner or
importer during calendar years
2001 and 2002.
``(II) Applicability of
other standards.--For any
calendar year, the quantity of
gasoline produced or
distributed by a refiner or
importer that is in excess of
the quantity subject to
subclause (I) shall be subject
to standards for emissions of
toxic air pollutants
promulgated under subparagraph
(A) and paragraph (3)(B).
``(iv) Credit program.--The
Administrator shall provide for the
granting and use of credits for
emissions of toxic air pollutants in
the same manner as provided in
paragraph (7).
``(v) Regional protection of toxics
reduction baselines.--
``(I) In general.--Not
later than 60 days after the
date of enactment of this
subparagraph, and not later
than April 1 of each calendar
year that begins after that
date of enactment, the
Administrator shall publish in
the Federal Register a report
that specifies, with respect to
the previous calendar year--
``(aa) the quantity
of reformulated
gasoline produced that
is in excess of the
average annual quantity
of reformulated
gasoline produced in
2001 and 2002; and
``(bb) the
reduction of the
average annual
aggregate emissions of
toxic air pollutants in
each PADD, based on
retail survey data or
data from other
appropriate sources.
``(II) Effect of failure to
maintain aggregate toxics
reductions.--If, in any
calendar year, the reduction of
the average annual aggregate
emissions of toxic air
pollutants in a PADD fails to
meet or exceed the reduction of
the average annual aggregate
emissions of toxic air
pollutants in the PADD in
calendar years 2001 and 2002,
the Administrator, not later
than 90 days after the date of
publication of the report for
the calendar year under
subclause (I), shall--
``(aa) identify, to
the maximum extent
practicable, the
reasons for the
failure, including the
sources, volumes, and
characteristics of
reformulated gasoline
that contributed to the
failure; and
``(bb) promulgate
revisions to the
regulations promulgated
under clause (ii), to
take effect not earlier
than 180 days but not
later than 270 days
after the date of
promulgation, to
provide that,
notwithstanding clause
(iii)(II), all
reformulated gasoline
produced or distributed
at each refiner or
importer shall meet the
standards applicable
under clause (iii)(I)
beginning not later
than April 1 of the
calendar year following
publication of the
report under subclause
(I) and in each
calendar year
thereafter.
``(vi) Not later than July 1, 2007,
the Administrator shall promulgate
final regulations to control hazardous
air pollutants from motor vehicles and
motor vehicle fuels, as provided for in
section 80.1045 of title 40, Code of
Federal Regulations (as in effect on
the date of enactment of this
subparagraph), and as authorized under
section 202(1) of the Clean Air Act. If
the Administrator promulgates by such
date, final regulations to control
hazardous air pollutants from motor
vehicles and motor vehicle fuels that
achieve and maintain greater overall
reductions in emissions of air toxics
from reformulated gasoline than the
reductions that would be achieved under
section 211(k)(1)(B) of the Clean Air
Act as amended by this clause, then
sections 211(k)(1)(B)(i) through
211(k)(1)(B)(v) shall be null and void
and regulations promulgated thereunder
shall be rescinded and have no further
effect.''.
(c) Consolidation in Reformulated Gasoline Regulations.--
Not later than 180 days after the date of enactment of this
Act, the Administrator of the Environmental Protection Agency
shall revise the reformulated gasoline regulations under
subpart D of part 80 of title 40, Code of Federal Regulations,
to consolidate the regulations applicable to VOC-Control
Regions 1 and 2 under section 80.41 of that title by
eliminating the less stringent requirements applicable to
gasoline designated for VOC-Control Region 2 and instead
applying the more stringent requirements applicable to gasoline
designated for VOC-Control Region 1.
(d) Savings Clause.--
(1) In general.--Nothing in this section or any
amendment made by this section affects or prejudices
any legal claim or action with respect to regulations
promulgated by the Administrator before the date of
enactment of this Act regarding--
(A) emissions of toxic air pollutants from
motor vehicles; or
(B) the adjustment of standards applicable
to a specific refinery or importer made under
those regulations.
(2) Adjustment of standards.--
(A) Applicability.--The Administrator may
apply any adjustments to the standards
applicable to a refinery or importer under
subparagraph (B)(iii)(I) of section 211(k)(1)
of the Clean Air Act (as added by subsection
(b)(2)), except that--
(i) the Administrator shall revise
the adjustments to be based only on
calendar years 1999 and 2000;
(ii) any such adjustment shall not
be made at a level below the average
percentage of reductions of emissions
of toxic air pollutants for
reformulated gasoline supplied to PADD
I during calendar years 1999 and 2000;
and
(iii) in the case of an adjustment
based on toxic air pollutant emissions
from reformulated gasoline
significantly below the national annual
average emissions of toxic air
pollutants from all reformulated
gasoline--
(I) the Administrator may
revise the adjustment to take
account of the scope of the
prohibition on methyl tertiary
butyl ether imposed by a State;
and
(II) any such adjustment
shall require the refiner or
importer, to the maximum extent
practicable, to maintain the
reduction achieved during
calendar years 1999 and 2000 in
the average annual aggregate
emissions of toxic air
pollutants from reformulated
gasoline produced or
distributed by the refiner or
importer.
SEC. 1505. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS OF FUELS AND FUEL
ADDITIVES.
Section 211(b) of the Clean Air Act (42 U.S.C. 7545(b)) is
amended--
(1) in paragraph (2)--
(A) by striking ``may also'' and inserting
``shall, on a regular basis,''; and
(B) by striking subparagraph (A) and
inserting the following:
``(A) to conduct tests to determine
potential public health and environmental
effects of the fuel or additive (including
carcinogenic, teratogenic, or mutagenic
effects); and''; and
(2) by adding at the end the following:
``(4) Study on certain fuel additives and
blendstocks.--
``(A) In general.--Not later than 2 years
after the date of enactment of this paragraph,
the Administrator shall--
``(i) conduct a study on the
effects on public health (including the
effects on children, pregnant women,
minority or low-income communities, and
other sensitive populations), air
quality, and water resources of
increased use of, and the feasibility
of using as substitutes for methyl
tertiary butyl ether in gasoline--
``(I) ethyl tertiary butyl
ether;
``(II) tertiary amyl methyl
ether;
``(III) di-isopropyl ether;
``(IV) tertiary butyl
alcohol;
``(V) other ethers and
heavy alcohols, as determined
by then Administrator;
``(VI) ethanol;
``(VII) iso-octane; and
``(VIII) alkylates; and
``(ii) conduct a study on the
effects on public health (including the
effects on children, pregnant women,
minority or low-income communities, and
other sensitive populations), air
quality, and water resources of the
adjustment for ethanol-blended
reformulated gasoline to the volatile
organic compounds performance
requirements that are applicable under
paragraphs (1) and (3) of section
211(k); and
``(iii) submit to the Committee on
Environment and Public Works of the
Senate and the Committee on Energy and
Commerce of the House of
Representatives a report describing the
results of the studies under clauses
(i) and (ii).
``(B) Contracts for study.--In carrying out
this paragraph, the Administrator may enter
into 1 or more contracts with nongovernmental
entities such as--
``(i) the national energy
laboratories; and
``(ii) institutions of higher
education (as defined in section 101 of
the Higher Education Act of 1965 (20
U.S.C. 1001)).''.
SEC. 1506. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by inserting after subsection (p) the following:
``(q) Analyses of Motor Vehicle Fuel Changes and Emissions
Model.--
``(1) Anti-backsliding analysis.--
``(A) Draft analysis.--Not later than 4
years after the date of enactment of this
paragraph, the Administrator shall publish for
public comment a draft analysis of the changes
in emissions of air pollutants and air quality
due to the use of motor vehicle fuel and fuel
additives resulting from implementation of the
amendments made by the Energy Policy Act of
2005.
``(B) Final analysis.--After providing a
reasonable opportunity for comment but not
later than 5 years after the date of enactment
of this paragraph, the Administrator shall
publish the analysis in final form.
``(2) Emissions model.--For the purposes of this
section, not later than 4 years after the date of
enactment of this paragraph, the Administrator shall
develop and finalize an emissions model that reflects,
to the maximum extent practicable, the effects of
gasoline characteristics or components on emissions
from vehicles in the motor vehicle fleet during
calendar year 2007.
``(3) Permeation effects study.--
``(A) In general.--Not later than 1 year
after the date of enactment of this paragraph,
the Administrator shall conduct a study, and
report to Congress the results of the study, on
the effects of ethanol content in gasoline on
permeation, the process by which fuel molecules
migrate through the elastomeric materials
(rubber and plastic parts) that make up the
fuel and fuel vapor systems of a motor vehicle.
``(B) Evaporative emissions.--The study
shall include estimates of the increase in
total evaporative emissions likely to result
from the use of gasoline with ethanol content
in a motor vehicle, and the fleet of motor
vehicles, due to permeation.''.
SEC. 1507. ADDITIONAL OPT-IN AREAS UNDER REFORMULATED GASOLINE PROGRAM.
Section 211(k)(6) of the Clean Air Act (42 U.S.C.
7545(k)(6)) is amended--
(1) by striking ``(6) Opt-in areas.--(A) Upon'' and
inserting the following:
``(6) Opt-in areas.--
``(A) Classified areas.--
``(i) In general.--Upon'';
(2) in subparagraph (B), by striking ``(B) If'' and
inserting the following:
``(ii) Effect of insufficient
domestic capacity to produce
reformulated gasoline.--If'';
(3) in subparagraph (A)(ii) (as redesignated by
paragraph (2))--
(A) in the first sentence, by striking
``subparagraph (A)'' and inserting ``clause
(i)''; and
(B) in the second sentence, by striking
``this paragraph'' and inserting ``this
subparagraph''; and
(4) by adding at the end the following:
``(B) Ozone transport region.--
``(i) Application of prohibition.--
``(I) In general.--On
application of the Governor of
a State in the ozone transport
region established by section
184(a), the Administrator, not
later than 180 days after the
date of receipt of the
application, shall apply the
prohibition specified in
paragraph (5) to any area in
the State (other than an area
classified as a marginal,
moderate, serious, or severe
ozone nonattainment area under
subpart 2 of part D of title I)
unless the Administrator
determines under clause (iii)
that there is insufficient
capacity to supply reformulated
gasoline.
``(II) Publication of
application.--As soon as
practicable after the date of
receipt of an application under
subclause (I), the
Administrator shall publish the
application in the Federal
Register.
``(ii) Period of applicability.--
Under clause (i), the prohibition
specified in paragraph (5) shall apply
in a State--
``(I) commencing as soon as
practicable but not later than
2 years after the date of
approval by the Administrator
of the application of the
Governor of the State; and
``(II) ending not earlier
than 4 years after the
commencement date determined
under subclause (I).
``(iii) Extension of commencement
date based on insufficient capacity.--
``(I) In general.--If,
after receipt of an application
from a Governor of a State
under clause (i), the
Administrator determines, on
the Administrator's own motion
or on petition of any person,
after consultation with the
Secretary of Energy, that there
is insufficient capacity to
supply reformulated gasoline,
the Administrator, by
regulation--
``(aa) shall extend
the commencement date
with respect to the
State under clause
(ii)(I) for not more
than 1 year; and
``(bb) may renew
the extension under
item (aa) for 2
additional periods,
each of which shall not
exceed 1 year.
``(II) Deadline for action
on petitions.--The
Administrator shall act on any
petition submitted under
subclause (I) not later than
180 days after the date of
receipt of the petition.''.
SEC. 1508. DATA COLLECTION.
Section 205 of the Department of Energy Organization Act
(42 U.S.C. 7135) is amended by adding at the end the following:
``(m) Renewable Fuels Survey.--(1) In order to improve the
ability to evaluate the effectiveness of the Nation's renewable
fuels mandate, the Administrator shall conduct and publish the
results of a survey of renewable fuels demand in the motor
vehicle fuels market in the United States monthly, and in a
manner designed to protect the confidentiality of individual
responses. In conducting the survey, the Administrator shall
collect information both on a national and regional basis,
including each of the following:
``(A) The quantity of renewable fuels produced.
``(B) The quantity of renewable fuels blended.
``(C) The quantity of renewable fuels imported.
``(D) The quantity of renewable fuels demanded.
``(E) Market price data.
``(F) Such other analyses or evaluations as the
Administrator finds are necessary to achieve the
purposes of this section.
``(2) The Administrator shall also collect or estimate
information both on a national and regional basis, pursuant to
subparagraphs (A) through (F) of paragraph (1), for the 5 years
prior to implementation of this subsection.
``(3) This subsection does not affect the authority of the
Administrator to collect data under section 52 of the Federal
Energy Administration Act of 1974 (15 U.S.C. 790a).''.
SEC. 1509. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.
(a) Study.--
(1) In general.--The Administrator of the
Environmental Protection Agency and the Secretary shall
jointly conduct a study of Federal, State, and local
requirements concerning motor vehicle fuels,
including--
(A) requirements relating to reformulated
gasoline, volatility (measured in Reid vapor
pressure), oxygenated fuel, and diesel fuel;
and
(B) other requirements that vary from State
to State, region to region, or locality to
locality.
(2) Required elements.--The study shall assess--
(A) the effect of the variety of
requirements described in paragraph (1) on the
supply, quality, and price of motor vehicle
fuels available to the consumer;
(B) the effect of the requirements
described in paragraph (1) on achievement of--
(i) national, regional, and local
air quality standards and goals; and
(ii) related environmental and
public health protection standards and
goals (including the protection of
children, pregnant women, minority or
low-income communities, and other
sensitive populations);
(C) the effect of Federal, State, and local
motor vehicle fuel regulations, including
multiple motor vehicle fuel requirements, on--
(i) domestic refiners;
(ii) the fuel distribution system;
and
(iii) industry investment in new
capacity;
(D) the effect of the requirements
described in paragraph (1) on emissions from
vehicles, refiners, and fuel handling
facilities;
(E) the feasibility of developing national
or regional motor vehicle fuel slates for the
48 contiguous States that, while protecting and
improving air quality at the national,
regional, and local levels, could--
(i) enhance flexibility in the fuel
distribution infrastructure and improve
fuel fungibility;
(ii) reduce price volatility and
costs to consumers and producers;
(iii) provide increased liquidity
to the gasoline market; and
(iv) enhance fuel quality,
consistency, and supply;
(F) the feasibility of providing
incentives, and the need for the development of
national standards necessary, to promote
cleaner burning motor vehicle fuel; and
(G) the extent to which improvements in air
quality and any increases or decreases in the
price of motor fuel can be projected to result
from the Environmental Protection Agency's Tier
II requirements for conventional gasoline and
vehicle emission systems, on-road and off-road
diesel rules, the reformulated gasoline
program, the renewable content requirements
established by this subtitle, State programs
regarding gasoline volatility, and any other
requirements imposed by the Federal Government,
States or localities affecting the composition
of motor fuel.
(b) Report.--
(1) In general.--Not later than June 1, 2008, the
Administrator of the Environmental Protection Agency
and the Secretary shall submit to Congress a report on
the results of the study conducted under subsection
(a).
(2) Recommendations.--
(A) In general.--The report shall contain
recommendations for legislative and
administrative actions that may be taken--
(i) to improve air quality;
(ii) to reduce costs to consumers
and producers; and
(iii) to increase supply liquidity.
(B) Required considerations.--The
recommendations under subparagraph (A) shall
take into account the need to provide advance
notice of required modifications to refinery
and fuel distribution systems in order to
ensure an adequate supply of motor vehicle fuel
in all States.
(3) Consultation.--In developing the report, the
Administrator of the Environmental Protection Agency
and the Secretary shall consult with--
(A) the Governors of the States;
(B) automobile manufacturers;
(C) State and local air pollution control
regulators;
(D) public health experts;
(E) motor vehicle fuel producers and
distributors; and
(F) the public.
SEC. 1510. COMMERCIAL BYPRODUCTS FROM MUNICIPAL SOLID WASTE AND
CELLULOSIC BIOMASS LOAN GUARANTEE PROGRAM.
(a) Definition of Municipal Solid Waste.--In this section,
the term ``municipal solid waste'' has the meaning given the
term ``solid waste'' in section 1004 of the Solid Waste
Disposal Act (42 U.S.C. 6903).
(b) Establishment of Program.--The Secretary shall
establish a program to provide guarantees of loans by private
institutions for the construction of facilities for the
processing and conversion of municipal solid waste and
cellulosic biomass into fuel ethanol and other commercial
byproducts.
(c) Requirements.--The Secretary may provide a loan
guarantee under subsection (b) to an applicant if--
(1) without a loan guarantee, credit is not
available to the applicant under reasonable terms or
conditions sufficient to finance the construction of a
facility described in subsection (b);
(2) the prospective earning power of the applicant
and the character and value of the security pledged
provide a reasonable assurance of repayment of the loan
to be guaranteed in accordance with the terms of the
loan; and
(3) the loan bears interest at a rate determined by
the Secretary to be reasonable, taking into account the
current average yield on outstanding obligations of the
United States with remaining periods of maturity
comparable to the maturity of the loan.
(d) Criteria.--In selecting recipients of loan guarantees
from among applicants, the Secretary shall give preference to
proposals that--
(1) meet all applicable Federal and State
permitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the
greatest need for the facility because of--
(A) the limited availability of land for
waste disposal;
(B) the availability of sufficient
quantities of cellulosic biomass; or
(C) a high level of demand for fuel ethanol
or other commercial byproducts of the facility.
(e) Maturity.--A loan guaranteed under subsection (b) shall
have a maturity of not more than 20 years.
(f) Terms and Conditions.--The loan agreement for a loan
guaranteed under subsection (b) shall provide that no provision
of the loan agreement may be amended or waived without the
consent of the Secretary.
(g) Assurance of Repayment.--The Secretary shall require
that an applicant for a loan guarantee under subsection (b)
provide an assurance of repayment in the form of a performance
bond, insurance, collateral, or other means acceptable to the
Secretary in an amount equal to not less than 20 percent of the
amount of the loan.
(h) Guarantee Fee.--The recipient of a loan guarantee under
subsection (b) shall pay the Secretary an amount determined by
the Secretary to be sufficient to cover the administrative
costs of the Secretary relating to the loan guarantee.
(i) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
made under this section. Any such guarantee made by the
Secretary shall be conclusive evidence of the eligibility of
the loan for the guarantee with respect to principal and
interest. The validity of the guarantee shall be incontestable
in the hands of a holder of the guaranteed loan.
(j) Reports.--Until each guaranteed loan under this section
has been repaid in full, the Secretary shall annually submit to
Congress a report on the activities of the Secretary under this
section.
(k) Authorization of Appropriations.--There are authorized
to be appropriated such sums as are necessary to carry out this
section.
(l) Termination of Authority.--The authority of the
Secretary to issue a loan guarantee under subsection (b)
terminates on the date that is 10 years after the date of
enactment of this Act.
SEC. 1511. RENEWABLE FUEL.
The Clean Air Act is amended by inserting after section
211 (42 U.S.C. 7411) the following:
``SEC. 212. RENEWABLE FUEL.
``(a) Definitions.--In this section:
``(1) Municipal solid waste.--The term `municipal
solid waste' has the meaning given the term `solid
waste' in section 1004 of the Solid Waste Disposal Act
(42 U.S.C. 6903).
``(2) RFG state.--The term `RFG State' means a
State in which is located 1 or more covered areas (as
defined in section 211(k)(10)(D)).
``(3) Secretary.--The term `Secretary' means the
Secretary of Energy.
``(b) Cellulosic Biomass Ethanol and Municipal Solid Waste
Loan Guarantee Program.--
``(1) In general.--Funds may be provided for the
cost (as defined in the Federal Credit Reform Act of
1990 (2 U.S.C. 661 et seq.)) of loan guarantees issued
under title XIV of the Energy Policy Act to carry out
commercial demonstration projects for celluosic biomass
and sucrose-derived ethanol.
``(2) Demonstration projects.--
``(A) In general.--The Secretary shall
issue loan guarantees under this section to
carry out not more than 4 projects to
commercially demonstrate the feasibility and
viability of producing cellulosic biomass
ethanol or sucrose-derived ethanol, including
at least 1 project that uses cereal straw as a
feedstock and 1 project that uses municipal
solid waste as a feedstock.
``(B) Design capacity.--Each project shall
have a design capacity to produce at least
30,000,000 gallons of cellulosic biomass
ethanol each year.
``(3) Applicant assurances.--An applicant for a
loan guarantee under this section shall provide
assurances, satisfactory to the Secretary, that--
``(A) the project design has been validated
through the operation of a continuous process
facility with a cumulative output of at least
50,000 gallons of ethanol;
``(B) the project has been subject to a
full technical review;
``(C) the project is covered by adequate
project performance guarantees;
``(D) the project, with the loan guarantee,
is economically viable; and
``(E) there is a reasonable assurance of
repayment of the guaranteed loan.
``(4) Limitations.--
``(A) Maximum guarantee.--Except as
provided in subparagraph (B), a loan guarantee
under this section may be issued for up to 80
percent of the estimated cost of a project, but
may not exceed $250,000,000 for a project.
``(B) Additional guarantees.--
``(i) In general.--The Secretary
may issue additional loan guarantees
for a project to cover up to 80 percent
of the excess of actual project cost
over estimated project cost but not to
exceed 15 percent of the amount of the
original guarantee.
``(ii) Principal and interest.--
Subject to subparagraph (A), the
Secretary shall guarantee 100 percent
of the principal and interest of a loan
made under subparagraph (A).
``(5) Equity contributions.--To be eligible for a
loan guarantee under this section, an applicant for the
loan guarantee shall have binding commitments from
equity investors to provide an initial equity
contribution of at least 20 percent of the total
project cost.
``(6) Insufficient amounts.--If the amount made
available to carry out this section is insufficient to
allow the Secretary to make loan guarantees for 3
projects described in subsection (b), the Secretary
shall issue loan guarantees for 1 or more qualifying
projects under this section in the order in which the
applications for the projects are received by the
Secretary.
``(7) Approval.--An application for a loan
guarantee under this section shall be approved or
disapproved by the Secretary not later than 90 days
after the application is received by the Secretary.
``(c) Authorization of Appropriations for Resource
Center.--There is authorized to be appropriated, for a resource
center to further develop bioconversion technology using low-
cost biomass for the production of ethanol at the Center for
Biomass-Based Energy at the Mississippi State University and
the Oklahoma State University, $4,000,000 for each of fiscal
years 2005 through 2007.
``(d) Renewable Fuel Production Research and Development
Grants.--
``(1) In general.--The Administrator shall provide
grants for the research into, and development and
implementation of, renewable fuel production
technologies in RFG States with low rates of ethanol
production, including low rates of production of
cellulosic biomass ethanol.
``(2) Eligibility.--
``(A) In general.--The entities eligible to
receive a grant under this subsection are
academic institutions in RFG States, and
consortia made up of combinations of academic
institutions, industry, State government
agencies, or local government agencies in RFG
States, that have proven experience and
capabilities with relevant technologies.
``(B) Application.--To be eligible to
receive a grant under this subsection, an
eligible entity shall submit to the
Administrator an application in such manner and
form, and accompanied by such information, as
the Administrator may specify.
``(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection $25,000,000 for each of fiscal years 2006
through 2010.
``(e) Cellulosic Biomass Ethanol Conversion Assistance.--
``(1) In general.--The Secretary may provide grants
to merchant producers of cellulosic biomass ethanol in
the United States to assist the producers in building
eligible production facilities described in paragraph
(2) for the production of cellulosic biomass ethanol.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under
this subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic biomass feedstocks
derived from agricultural residues or municipal
solid waste.
``(3) Authorization of appropriations.--There is
authorized to be appropriated to carry out this
subsection--
``(A) $250,000,000 for fiscal year 2006;
and
``(B) $400,000,000 for fiscal year 2007.''.
SEC. 1512. CONVERSION ASSISTANCE FOR CELLULOSIC BIOMASS, WASTE-DERIVED
ETHANOL, APPROVED RENEWABLE FUELS.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(r) Conversion Assistance for Cellulosic Biomass, Waste-
Derived Ethanol, Approved Renewable Fuels.--
``(1) In general.--The Secretary of Energy may
provide grants to merchant producers of cellulosic
biomass ethanol, waste-derived ethanol, and approved
renewable fuels in the United States to assist the
producers in building eligible production facilities
described in paragraph (2) for the production of
ethanol or approved renewable fuels.
``(2) Eligible production facilities.--A production
facility shall be eligible to receive a grant under
this subsection if the production facility--
``(A) is located in the United States; and
``(B) uses cellulosic or renewable biomass
or waste-derived feedstocks derived from
agricultural residues, wood residues, municipal
solid waste, or agricultural byproducts.
``(3) Authorization of appropriations.--There are
authorized to be appropriated the following amounts to
carry out this subsection:
``(A) $100,000,000 for fiscal year 2006.
``(B) $250,000,000 for fiscal year 2007.
``(C) $400,000,000 for fiscal year 2008.
``(4) Definitions.--For the purposes of this
subsection:
``(A) The term `approved renewable fuels'
are fuels and components of fuels that have
been approved by the Department of Energy, as
defined in section 301 of the Energy Policy Act
of 1992 (42 U.S.C. 13211), which have been made
from renewable biomass.
``(B) The term `renewable biomass' is, as
defined in Presidential Executive Order 13134,
published in the Federal Register on August 16,
1999, any organic matter that is available on a
renewable or recurring basis (excluding old-
growth timber), including dedicated energy
crops and trees, agricultural food and feed
crop residues, aquatic plants, animal wastes,
wood and wood residues, paper and paper
residues, and other vegetative waste materials.
Old-growth timber means timber of a forest from
the late successional stage of forest
development.''.
SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GASOLINES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) is
amended by adding at the end the following:
``(s) Blending of Compliant Reformulated Gasolines.--
``(1) In general.--Notwithstanding subsections (h)
and (k) and subject to the limitations in paragraph (2)
of this subsection, it shall not be a violation of this
subtitle for a gasoline retailer, during any month of
the year, to blend at a retail location batches of
ethanol-blended and non-ethanol-blended reformulated
gasoline, provided that--
``(A) each batch of gasoline to be blended
has been individually certified as in
compliance with subsections (h) and (k) prior
to being blended;
``(B) the retailer notifies the
Administrator prior to such blending, and
identifies the exact location of the retail
station and the specific tank in which such
blending will take place;
``(C) the retailer retains and, as
requested by the Administrator or the
Administrator's designee, makes available for
inspection such certifications accounting for
all gasoline at the retail outlet; and
``(D) the retailer does not, between June 1
and September 15 of each year, blend a batch of
VOC-controlled, or `summer', gasoline with a
batch of non-VOC-controlled, or `winter',
gasoline (as these terms are defined under
subsections (h) and (k)).
``(2) Limitations.--
``(A) Frequency limitation.--A retailer
shall only be permitted to blend batches of
compliant reformulated gasoline under this
subsection a maximum of two blending periods
between May 1 and September 15 of each calendar
year.
``(B) Duration of blending period.--Each
blending period authorized under subparagraph
(A) shall extend for a period of no more than
10 consecutive calendar days.
``(3) Surveys.--A sample of gasoline taken from a
retail location that has blended gasoline within the
past 30 days and is in compliance with subparagraphs
(A), (B), (C), and (D) of paragraph (1) shall not be
used in a VOC survey mandated by 40 C.F.R. Part 80.
``(4) State implementation plans.--A State shall be
held harmless and shall not be required to revise its
State implementation plan under section 110 to account
for the emissions from blended gasoline authorized
under paragraph (1).
``(5) Preservation of state law.--Nothing in this
subsection shall--
``(A) preempt existing State laws or
regulations regulating the blending of
compliant gasolines; or
``(B) prohibit a State from adopting such
restrictions in the future.
``(6) Regulations.--The Administrator shall
promulgate, after notice and comment, regulations
implementing this subsection within one year after the
date of enactment of this subsection.
``(7) Effective date.--This subsection shall become
effective 15 months after the date of its enactment and
shall apply to blended batches of reformulated gasoline
on or after that date, regardless of whether the
implementing regulations required by paragraph (6) have
been promulgated by the Administrator by that date.
``(8) Liability.--No person other than the person
responsible for blending under this subsection shall be
subject to an enforcement action or penalties under
subsection (d) solely arising from the blending of
compliant reformulated gasolines by the retailers.
``(9) Formulation of gasoline.--This subsection
does not grant authority to the Administrator or any
State (or any subdivision thereof) to require
reformulation of gasoline at the refinery to adjust for
potential or actual emissions increases due to the
blending authorized by this subsection.''.
SEC. 1514. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM.
(a) In General.--Subject to the availability of
appropriations under subsection (d), the Administrator of the
Environmental Protection Agency shall, in consultation with the
Secretary of Agriculture and the Biomass Research and
Development Technical Advisory Committee established under
section 306 of the Biomass Research and Development Act of 2000
(Public Law 106-224; 7 U.S.C. 8101 note), establish a program,
to be known as the ``Advanced Biofuel Technologies Program'',
to demonstrate advanced technologies for the production of
alternative transportation fuels.
(b) Priority.--In carrying out the program under subsection
(a), the Administrator shall give priority to projects that
enhance the geographical diversity of alternative fuels
production and utilize feedstocks that represent 10 percent or
less of ethanol or biodiesel fuel production in the United
States during the previous fiscal year.
(c) Demonstration Projects.--
(1) In general.--As part of the program under
subsection (a), the Administrator shall fund
demonstration projects--
(A) to develop not less than 4 different
conversion technologies for producing
cellulosic biomass ethanol; and
(B) to develop not less than 5 technologies
for coproducing value-added bioproducts (such
as fertilizers, herbicides, and pesticides)
resulting from the production of biodiesel
fuel.
(2) Administration.--Demonstration projects under
this subsection shall be--
(A) conducted based on a merit-reviewed,
competitive process; and
(B) subject to the cost-sharing
requirements of section 988.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to carry out this section $110,000,000 for
each of fiscal years 2005 through 2009.
SEC. 1515. WASTE-DERIVED ETHANOL AND BIODIESEL.
Section 312(f)(1) of the Energy Policy Act of 1992 (42
U.S.C. 13220(f)(1)) is amended--
(1) by striking ```biodiesel' means'' and inserting
the following: ```biodiesel'--
``(A) means''; and
(2) in subparagraph (A) (as designated by paragraph
(1)) by striking ``and'' at the end and inserting the
following:
``(B) includes biodiesel derived from--
``(i) animal wastes, including
poultry fats and poultry wastes, and
other waste materials; or
``(ii) municipal solid waste and
sludges and oils derived from
wastewater and the treatment of
wastewater; and''.''
SEC. 1516. SUGAR ETHANOL LOAN GUARANTEE PROGRAM.
(a) In General.--Funds may be provided for the cost (as
defined in section 502 of the Federal Credit Reform Act of 1990
(2 U.S.C. 661a)) of loan guarantees issued under title XIV to
carry out commercial demonstration projects for ethanol derived
from sugarcane, bagasse, and other sugarcane byproducts.
(b) Demonstration Projects.--The Secretary may issue loan
guarantees under this section to projects to demonstrate
commercially the feasibility and viability of producing ethanol
using sugarcane, sugarcane bagasse, and other sugarcane
byproducts as a feedstock.
(c) Requirements.--An applicant for a loan guarantee under
this section may provide assurances, satisfactory to the
Secretary, that--
(1) the project design has been validated through
the operation of a continuous process facility;
(2) the project has been subject to a full
technical review;
(3) the project, with the loan guarantee, is
economically viable; and
(4) there is a reasonable assurance of repayment of
the guaranteed loan.
(d) Limitations.--
(1) Maximum guarantee.--Except as provided in
paragraph (2), a loan guarantee under this section--
(A) may be issued for up to 80 percent of
the estimated cost of a project; but
(B) shall not exceed $50,000,000 for any 1
project.
(2) Additional guarantees.--
(A) In general.--The Secretary may issue
additional loan guarantees for a project to
cover--
(i) up to 80 percent of the excess
of actual project costs; but
(ii) not to exceed 15 percent of
the amount of the original loan
guarantee.
(B) Principal and interest.--Subject to
subparagraph (A), the Secretary shall guarantee
100 percent of the principal and interest of a
loan guarantee made under subparagraph (A).
Subtitle B--Underground Storage Tank Compliance
SEC. 1521. SHORT TITLE.
This subtitle may be cited as the ``Underground Storage
Tank Compliance Act ''.
SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS.
(a) In General.--Section 9004 of the Solid Waste Disposal
Act (42 U.S.C. 6991c) is amended by adding at the end the
following:
``(f) Trust Fund Distribution.--
``(1) In general.--
``(A) Amount and permitted uses of
distribution.--The Administrator shall
distribute to States not less than 80 percent
of the funds from the Trust Fund that are made
available to the Administrator under section
9014(2)(A) for each fiscal year for use in
paying the reasonable costs, incurred under a
cooperative agreement with any State for--
``(i) corrective actions taken by
the State under section 9003(h)(7)(A);
``(ii) necessary administrative
expenses, as determined by the
Administrator, that are directly
related to State fund or State
assurance programs under subsection
(c)(1); or
``(iii) enforcement, by a State or
a local government, of State or local
regulations pertaining to underground
storage tanks regulated under this
subtitle.
``(B) Use of funds for enforcement.--In
addition to the uses of funds authorized under
subparagraph (A), the Administrator may use
funds from the Trust Fund that are not
distributed to States under subparagraph (A)
for enforcement of any regulation promulgated
by the Administrator under this subtitle.
``(C) Prohibited uses.--Funds provided to a
State by the Administrator under subparagraph
(A) shall not be used by the State to provide
financial assistance to an owner or operator to
meet any requirement relating to underground
storage tanks under subparts B, C, D, H, and G
of part 280 of title 40, Code of Federal
Regulations (as in effect on the date of
enactment of this subsection).
``(2) Allocation.--
``(A) Process.--Subject to subparagraphs
(B) and (C), in the case of a State with which
the Administrator has entered into a
cooperative agreement under section
9003(h)(7)(A), the Administrator shall
distribute funds from the Trust Fund to the
State using an allocation process developed by
the Administrator.
``(B) Diversion of state funds.--The
Administrator shall not distribute funds under
subparagraph (A)(iii) of subsection (f)(1) to
any State that has diverted funds from a State
fund or State assurance program for purposes
other than those related to the regulation of
underground storage tanks covered by this
subtitle, with the exception of those transfers
that had been completed earlier than the date
of enactment of this subsection.
``(C) Revisions to process.--The
Administrator may revise the allocation process
referred to in subparagraph (A) after--
``(i) consulting with State
agencies responsible for overseeing
corrective action for releases from
underground storage tanks; and
``(ii) taking into consideration,
at a minimum, each of the following:
``(I) The number of
confirmed releases from
federally regulated leaking
underground storage tanks in
the States.
``(II) The number of
federally regulated underground
storage tanks in the States.
``(III) The performance of
the States in implementing and
enforcing the program.
``(IV) The financial needs
of the States.
``(V) The ability of the
States to use the funds
referred to in subparagraph (A)
in any year.
``(3) Distributions to state agencies.--
Distributions from the Trust Fund under this subsection
shall be made directly to a State agency that--
``(A) enters into a cooperative agreement
referred to in paragraph (2)(A); or
``(B) is enforcing a State program approved
under this section.''.
(b) Withdrawal of Approval of State Funds.--Section 9004(c)
of the Solid Waste Disposal Act (42 U.S.C. 6991c(c)) is amended
by inserting the following new paragraph at the end thereof:
``(6) Withdrawal of approval.--After an opportunity
for good faith, collaborative efforts to correct
financial deficiencies with a State fund, the
Administrator may withdraw approval of any State fund
or State assurance program to be used as a financial
responsibility mechanism without withdrawing approval
of a State underground storage tank program under
section 9004(a).''.
(c) Ability to Pay.--Section 9003(h)(6) of the Solid Waste
Disposal Act (42 U.S.C. 6591a(h)(6)) is amended by adding the
following new subparagraph at the end thereof:
``(E) Inability or limited ability to
pay.--
``(i) In general.--In determining
the level of recovery effort, or amount
that should be recovered, the
Administrator (or the State pursuant to
paragraph (7)) shall consider the owner
or operator's ability to pay. An
inability or limited ability to pay
corrective action costs must be
demonstrated to the Administrator (or
the State pursuant to paragraph (7)) by
the owner or operator.
``(ii) Considerations.--In
determining whether or not a
demonstration is made under clause (i),
the Administrator (or the State
pursuant to paragraph (7)) shall take
into consideration the ability of the
owner or operator to pay corrective
action costs and still maintain its
basic business operations, including
consideration of the overall financial
condition of the owner or operator and
demonstrable constraints on the ability
of the owner or operator to raise
revenues.
``(iii) Information.--An owner or
operator requesting consideration under
this subparagraph shall promptly
provide the Administrator (or the State
pursuant to paragraph (7)) with all
relevant information needed to
determine the ability of the owner or
operator to pay corrective action
costs.
``(iv) Alternative payment
methods.--The Administrator (or the
State pursuant to paragraph (7)) shall
consider alternative payment methods as
may be necessary or appropriate if the
Administrator (or the State pursuant to
paragraph (7)) determines that an owner
or operator cannot pay all or a portion
of the costs in a lump sum payment.
``(v) Misrepresentation.--If an
owner or operator provides false
information or otherwise misrepresents
their financial situation under clause
(ii), the Administrator (or the State
pursuant to paragraph (7)) shall seek
full recovery of the costs of all such
actions pursuant to the provisions of
subparagraph (A) without consideration
of the factors in subparagraph (B).''.
SEC. 1523. INSPECTION OF UNDERGROUND STORAGE TANKS.
(a) Inspection Requirements.--Section 9005 of the Solid
Waste Disposal Act (42 U.S.C. 6991d) is amended by inserting
the following new subsection at the end thereof:
``(c) Inspection Requirements.--
``(1) Uninspected tanks.--In the case of
underground storage tanks regulated under this subtitle
that have not undergone an inspection since December
22, 1998, not later than 2 years after the date of
enactment of this subsection, the Administrator or a
State that receives funding under this subtitle, as
appropriate, shall conduct on-site inspections of all
such tanks to determine compliance with this subtitle
and the regulations under this subtitle (40 C.F.R. 280)
or a requirement or standard of a State program
developed under section 9004.
``(2) Periodic inspections.--After completion of
all inspections required under paragraph (1), the
Administrator or a State that receives funding under
this subtitle, as appropriate, shall conduct on-site
inspections of each underground storage tank regulated
under this subtitle at least once every 3 years to
determine compliance with this subtitle and the
regulations under this subtitle (40 C.F.R. 280) or a
requirement or standard of a State program developed
under section 9004. The Administrator may extend for up
to one additional year the first 3-year inspection
interval under this paragraph if the State demonstrates
that it has insufficient resources to complete all such
inspections within the first 3-year period.
``(3) Inspection authority.--Nothing in this
section shall be construed to diminish the
Administrator's or a State's authorities under section
9005(a).''.
(b) Study of Alternative Inspection Programs.--The
Administrator of the Environmental Protection Agency, in
coordination with a State, shall gather information on
compliance assurance programs that could serve as an
alternative to the inspection programs under section 9005(c) of
the Solid Waste Disposal Act (42 U.S.C. 6991d(c)) and shall,
within 4 years after the date of enactment of this Act, submit
a report to the Congress containing the results of such study.
SEC. 1524. OPERATOR TRAINING.
(a) In General.--Section 9010 of the Solid Waste Disposal
Act (42 U.S.C. 6991i) is amended to read as follows:
``SEC. 9010. OPERATOR TRAINING.
``(a) Guidelines.--
``(1) In general.--Not later than 2 years after the
date of enactment of the Underground Storage Tank
Compliance Act, in consultation and cooperation with
States and after public notice and opportunity for
comment, the Administrator shall publish guidelines
that specify training requirements for--
``(A) persons having primary responsibility
for on-site operation and maintenance of
underground storage tank systems;
``(B) persons having daily on-site
responsibility for the operation and
maintenance of underground storage tanks
systems; and
``(C) daily, on-site employees having
primary responsibility for addressing
emergencies presented by a spill or release
from an underground storage tank system.
``(2) Considerations.--The guidelines described in
paragraph (1) shall take into account--
``(A) State training programs in existence
as of the date of publication of the
guidelines;
``(B) training programs that are being
employed by tank owners and tank operators as
of the date of enactment of the Underground
Storage Tank Compliance Act;
``(C) the high turnover rate of tank
operators and other personnel;
``(D) the frequency of improvement in
underground storage tank equipment technology;
``(E) the nature of the businesses in which
the tank operators are engaged;
``(F) the substantial differences in the
scope and length of training needed for the
different classes of persons described in
subparagraphs (A), (B), and (C) of paragraph
(1); and
``(G) such other factors as the
Administrator determines to be necessary to
carry out this section.
``(b) State Programs.--
``(1) In general.--Not later than 2 years after the
date on which the Administrator publishes the
guidelines under subsection (a)(1), each State that
receives funding under this subtitle shall develop
State-specific training requirements that are
consistent with the guidelines developed under
subsection (a)(1).
``(2) Requirements.--State requirements described
in paragraph (1) shall--
``(A) be consistent with subsection (a);
``(B) be developed in cooperation with tank
owners and tank operators;
``(C) take into consideration training
programs implemented by tank owners and tank
operators as of the date of enactment of this
section; and
``(D) be appropriately communicated to tank
owners and operators.
``(3) Financial incentive.--The Administrator may
award to a State that develops and implements
requirements described in paragraph (1), in addition to
any funds that the State is entitled to receive under
this subtitle, not more than $200,000, to be used to
carry out the requirements.
``(c) Training.--All persons that are subject to the
operator training requirements of subsection (a) shall--
``(1) meet the training requirements developed
under subsection (b); and
``(2) repeat the applicable requirements developed
under subsection (b), if the tank for which they have
primary daily on-site management responsibilities is
determined to be out of compliance with--
``(A) a requirement or standard promulgated
by the Administrator under section 9003; or
``(B) a requirement or standard of a State
program approved under section 9004.''.
(b) State Program Requirement.--Section 9004(a) of the
Solid Waste Disposal Act (42 U.S.C. 6991c(a)) is amended by
striking ``and'' at the end of paragraph (7), by striking the
period at the end of paragraph (8) and inserting ``; and'', and
by adding the following new paragraph at the end thereof:
``(9) State-specific training requirements as
required by section 9010.''.
(c) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e) is amended as follows:
(1) By striking ``or'' at the end of subparagraph
(B).
(2) By adding the following new subparagraph after
subparagraph (C):
``(D) the training requirements established by
States pursuant to section 9010 (relating to operator
training); or''.
(d) Table of Contents.--The item relating to section 9010
in table of contents for the Solid Waste Disposal Act is
amended to read as follows:
``Sec. 9010. Operator training''.
SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDITIVES.
Section 9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended as follows:
(1) In paragraph (7)(A)--
(A) by striking ``paragraphs (1) and (2) of
this subsection'' and inserting ``paragraphs
(1), (2), and (12)''; and
(B) by striking ``and including the
authorities of paragraphs (4), (6), and (8) of
this subsection'' and inserting ``and the
authority under sections 9011 and 9012 and
paragraphs (4), (6), and (8),''.
(2) By adding at the end the following:
``(12) Remediation of oxygenated fuel
contamination.--
``(A) In general.--The Administrator and
the States may use funds made available under
section 9014(2)(B) to carry out corrective
actions with respect to a release of a fuel
containing an oxygenated fuel additive that
presents a threat to human health or welfare or
the environment.
``(B) Applicable authority.--The
Administrator or a State shall carry out
subparagraph (A) in accordance with paragraph
(2), and in the case of a State, in accordance
with a cooperative agreement entered into by
the Administrator and the State under paragraph
(7).''.
SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND ENFORCEMENT.
(a) Release Prevention and Compliance.--Subtitle I of the
Solid Waste Disposal Act (42 U.S.C. 6991 et seq.) is amended by
adding at the end the following:
``SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND COMPLIANCE.
``Funds made available under section 9014(2)(D) from the
Trust Fund may be used to conduct inspections, issue orders, or
bring actions under this subtitle--
``(1) by a State, in accordance with a grant or
cooperative agreement with the Administrator, of State
regulations pertaining to underground storage tanks
regulated under this subtitle; and
``(2) by the Administrator, for tanks regulated
under this subtitle (including under a State program
approved under section 9004).''.
(b) Government-Owned Tanks.--Section 9003 of the Solid
Waste Disposal Act (42 U.S.C. 6991b) is amended by adding at
the end the following:
``(i) Government-Owned Tanks.--
``(1) State compliance report.--(A) Not later than
2 years after the date of enactment of this subsection,
each State that receives funding under this subtitle
shall submit to the Administrator a State compliance
report that--
``(i) lists the location and owner of each
underground storage tank described in
subparagraph (B) in the State that, as of the
date of submission of the report, is not in
compliance with section 9003; and
``(ii) specifies the date of the last
inspection and describes the actions that have
been and will be taken to ensure compliance of
the underground storage tank listed under
clause (i) with this subtitle.
``(B) An underground storage tank described in this
subparagraph is an underground storage tank that is--
``(i) regulated under this subtitle; and
``(ii) owned or operated by the Federal,
State, or local government.
``(C) The Administrator shall make each report,
received under subparagraph (A), available to the
public through an appropriate media.
``(2) Financial incentive.--The Administrator may
award to a State that develops a report described in
paragraph (1), in addition to any other funds that the
State is entitled to receive under this subtitle, not
more than $50,000, to be used to carry out the report.
``(3) Not a safe harbor.--This subsection does not
relieve any person from any obligation or requirement
under this subtitle.''.
(c) Public Record.--Section 9002 of the Solid Waste
Disposal Act (42 U.S.C. 6991a) is amended by adding at the end
the following:
``(d) Public Record.--
``(1) In general.--The Administrator shall require
each State that receives Federal funds to carry out
this subtitle to maintain, update at least annually,
and make available to the public, in such manner and
form as the Administrator shall prescribe (after
consultation with States), a record of underground
storage tanks regulated under this subtitle.
``(2) Considerations.--To the maximum extent
practicable, the public record of a State,
respectively, shall include, for each year--
``(A) the number, sources, and causes of
underground storage tank releases in the State;
``(B) the record of compliance by
underground storage tanks in the State with--
``(i) this subtitle; or
``(ii) an applicable State program
approved under section 9004; and
``(C) data on the number of underground
storage tank equipment failures in the
State.''.
(d) Incentive for Performance.--Section 9006 of the Solid
Waste Disposal Act (42 U.S.C. 6991e) is amended by adding at
the end the following:
``(e) Incentive for Performance.--Both of the following may
be taken into account in determining the terms of a civil
penalty under subsection (d):
``(1) The compliance history of an owner or
operator in accordance with this subtitle or a program
approved under section 9004.
``(2) Any other factor the Administrator considers
appropriate.''.
(e) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9011. Use of funds for release prevention and compliance''.
SEC. 1527. DELIVERY PROHIBITION.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:
``SEC. 9012. DELIVERY PROHIBITION.
``(a) Requirements.--
``(1) Prohibition of delivery or deposit.--
Beginning 2 years after the date of enactment of this
section, it shall be unlawful to deliver to, deposit
into, or accept a regulated substance into an
underground storage tank at a facility which has been
identified by the Administrator or a State implementing
agency to be ineligible for such delivery, deposit, or
acceptance.
``(2) Guidance.--Within 1 year after the date of
enactment of this section, the Administrator shall, in
consultation with the States, underground storage tank
owners, and product delivery industries, publish
guidelines detailing the specific processes and
procedures they will use to implement the provisions of
this section. The processes and procedures include, at
a minimum--
``(A) the criteria for determining which
underground storage tank facilities are
ineligible for delivery, deposit, or acceptance
of a regulated substance;
``(B) the mechanisms for identifying which
facilities are ineligible for delivery,
deposit, or acceptance of a regulated substance
to the underground storage tank owning and fuel
delivery industries;
``(C) the process for reclassifying
ineligible facilities as eligible for delivery,
deposit, or acceptance of a regulated
substance;
``(D) one or more processes for providing
adequate notice to underground storage tank
owners and operators and supplier industries
that an underground storage tank has been
determined to be ineligible for delivery,
deposit, or acceptance or a regulated
substance; and
``(E) a delineation of, or a process for
determining, the specified geographic areas
subject to paragraph (4).
``(3) Compliance.--States that receive funding
under this subtitle shall, at a minimum, comply with
the processes and procedures published under paragraph
(2).
``(4) Consideration.--
``(A) Rural and remote areas.--Subject to
subparagraph (B), the Administrator or a State
may consider not treating an underground
storage tank as ineligible for delivery,
deposit or acceptance of a regulated substance
if such treatment would jeopardize the
availability of, or access to, fuel in any
rural and remote areas unless an urgent threat
to public health, as determined by the
Administrator, exists.
``(B) Applicability.--Subparagraph (A)
shall apply only during the 180-day period
following the date of a determination by the
Administrator or the appropriate State under
subparagraph (A).
``(b) Effect on State Authority.--Nothing in this section
shall affect or preempt the authority of a State to prohibit
the delivery, deposit, or acceptance of a regulated substance
to an underground storage tank.
``(c) Defense to Violation.--A person shall not be in
violation of subsection (a)(1) if the person has not been
provided with notice pursuant to subsection (a)(2)(D) of the
ineligibility of a facility for delivery, deposit, or
acceptance of a regulated substance as determined by the
Administrator or a State, as appropriate, under this
section.''.
(b) Enforcement.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By adding the following new subparagraph after
subparagraph (D):
``(E) the delivery prohibition requirement
established by section 9012,''.
(2) By adding the following new sentence at the end
thereof: ``Any person making or accepting a delivery or
deposit of a regulated substance to an underground
storage tank at an ineligible facility in violation of
section 9012 shall also be subject to the same civil
penalty for each day of such violation.''.
(c) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9012. Delivery prohibition''.
SEC. 1528. FEDERAL FACILITIES.
Section 9007 of the Solid Waste Disposal Act (42 U.S.C.
6991f) is amended to read as follows:
``SEC. 9007. FEDERAL FACILITIES.
``(a) In General.--Each department, agency, and
instrumentality of the executive, legislative, and judicial
branches of the Federal Government (1) having jurisdiction over
any underground storage tank or underground storage tank
system, or (2) engaged in any activity resulting, or which may
result, in the installation, operation, management, or closure
of any underground storage tank, release response activities
related thereto, or in the delivery, acceptance, or deposit of
any regulated substance to an underground storage tank or
underground storage tank system shall be subject to, and comply
with, all Federal, State, interstate, and local requirements,
both substantive and procedural (including any requirement for
permits or reporting or any provisions for injunctive relief
and such sanctions as may be imposed by a court to enforce such
relief), respecting underground storage tanks in the same
manner, and to the same extent, as any person is subject to
such requirements, including the payment of reasonable service
charges. The Federal, State, interstate, and local substantive
and procedural requirements referred to in this subsection
include, but are not limited to, all administrative orders and
all civil and administrative penalties and fines, regardless of
whether such penalties or fines are punitive or coercive in
nature or are imposed for isolated, intermittent, or continuing
violations. The United States hereby expressly waives any
immunity otherwise applicable to the United States with respect
to any such substantive or procedural requirement (including,
but not limited to, any injunctive relief, administrative order
or civil or administrative penalty or fine referred to in the
preceding sentence, or reasonable service charge). The
reasonable service charges referred to in this subsection
include, but are not limited to, fees or charges assessed in
connection with the processing and issuance of permits, renewal
of permits, amendments to permits, review of plans, studies,
and other documents, and inspection and monitoring of
facilities, as well as any other nondiscriminatory charges that
are assessed in connection with a Federal, State, interstate,
or local underground storage tank regulatory program. Neither
the United States, nor any agent, employee, or officer thereof,
shall be immune or exempt from any process or sanction of any
State or Federal Court with respect to the enforcement of any
such injunctive relief. No agent, employee, or officer of the
United States shall be personally liable for any civil penalty
under any Federal, State, interstate, or local law concerning
underground storage tanks with respect to any act or omission
within the scope of the official duties of the agent, employee,
or officer. An agent, employee, or officer of the United States
shall be subject to any criminal sanction (including, but not
limited to, any fine or imprisonment) under any Federal or
State law concerning underground storage tanks, but no
department, agency, or instrumentality of the executive,
legislative, or judicial branch of the Federal Government shall
be subject to any such sanction. The President may exempt any
underground storage tank of any department, agency, or
instrumentality in the executive branch from compliance with
such a requirement if he determines it to be in the paramount
interest of the United States to do so. No such exemption shall
be granted due to lack of appropriation unless the President
shall have specifically requested such appropriation as a part
of the budgetary process and the Congress shall have failed to
make available such requested appropriation. Any exemption
shall be for a period not in excess of one year, but additional
exemptions may be granted for periods not to exceed one year
upon the President's making a new determination. The President
shall report each January to the Congress all exemptions from
the requirements of this section granted during the preceding
calendar year, together with his reason for granting each such
exemption.
``(b) Review of and Report on Federal Underground Storage
Tanks.--
``(1) Review.--Not later than 12 months after the
date of enactment of the Underground Storage Tank
Compliance Act, each Federal agency that owns or
operates 1 or more underground storage tanks, or that
manages land on which 1 or more underground storage
tanks are located, shall submit to the Administrator,
the Committee on Energy and Commerce of the United
States House of Representatives, and the Committee on
the Environment and Public Works of the United States
Senate a compliance strategy report that--
``(A) lists the location and owner of each
underground storage tank described in this
paragraph;
``(B) lists all tanks that are not in
compliance with this subtitle that are owned or
operated by the Federal agency;
``(C) specifies the date of the last
inspection by a State or Federal inspector of
each underground storage tank owned or operated
by the agency;
``(D) lists each violation of this subtitle
respecting any underground storage tank owned
or operated by the agency;
``(E) describes the operator training that
has been provided to the operator and other
persons having primary daily on-site management
responsibility for the operation and
maintenance of underground storage tanks owned
or operated by the agency; and
``(F) describes the actions that have been
and will be taken to ensure compliance for each
underground storage tank identified under
subparagraph (B).
``(2) Not a safe harbor.--This subsection does not
relieve any person from any obligation or requirement
under this subtitle.''.
SEC. 1529. TANKS ON TRIBAL LANDS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding the following at
the end thereof:
``SEC. 9013. TANKS ON TRIBAL LANDS.
``(a) Strategy.--The Administrator, in coordination with
Indian tribes, shall, not later than 1 year after the date of
enactment of this section, develop and implement a strategy--
``(1) giving priority to releases that present the
greatest threat to human health or the environment, to
take necessary corrective action in response to
releases from leaking underground storage tanks located
wholly within the boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction
of an Indian tribe; and
``(2) to implement and enforce requirements
concerning underground storage tanks located wholly
within the boundaries of--
``(A) an Indian reservation; or
``(B) any other area under the jurisdiction
of an Indian tribe.
``(b) Report.--Not later than 2 years after the date of
enactment of this section, the Administrator shall submit to
Congress a report that summarizes the status of implementation
and enforcement of this subtitle in areas located wholly
within--
``(1) the boundaries of Indian reservations; and
``(2) any other areas under the jurisdiction of an
Indian tribe.
The Administrator shall make the report under this subsection
available to the public.
``(c) Not a Safe Harbor.--This section does not relieve any
person from any obligation or requirement under this subtitle.
``(d) State Authority.--Nothing in this section applies to
any underground storage tank that is located in an area under
the jurisdiction of a State, or that is subject to regulation
by a State, as of the date of enactment of this section.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9013. Tanks on Tribal lands''.
SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUNDWATER.
(a) In General.--Section 9003 of the Solid Waste Disposal
Act (42 U.S.C. 6991b) is amended by adding the following new
subsection at the end:
``(i) Additional Measures to Protect Groundwater From
Contamination.--The Administrator shall require each State that
receives funding under this subtitle to require one of the
following:
``(1) Tank and piping secondary containment.--(A)
Each new underground storage tank, or piping connected
to any such new tank, installed after the effective
date of this subsection, or any existing underground
storage tank, or existing piping connected to such
existing tank, that is replaced after the effective
date of this subsection, shall be secondarily contained
and monitored for leaks if the new or replaced
underground storage tank or piping is within 1,000 feet
of any existing community water system or any existing
potable drinking water well.
``(B) In the case of a new underground storage tank
system consisting of one or more underground storage
tanks and connected by piping, subparagraph (A) shall
apply to all underground storage tanks and connected
pipes comprising such system.
``(C) In the case of a replacement of an existing
underground storage tank or existing piping connected
to the underground storage tank, subparagraph (A) shall
apply only to the specific underground storage tank or
piping being replaced, not to other underground storage
tanks and connected pipes comprising such system.
``(D) Each installation of a new motor fuel
dispenser system, after the effective date of this
subsection, shall include under-dispenser spill
containment if the new dispenser is within 1,000 feet
of any existing community water system or any existing
potable drinking water well.
``(E) This paragraph shall not apply to repairs to
an underground storage tank, piping, or dispenser that
are meant to restore a tank, pipe, or dispenser to
operating condition.
``(F) As used in this subsection:
``(i) The term `secondarily contained'
means a release detection and prevention system
that meets the requirements of 40 CFR
280.43(g), but shall not include under-
dispenser spill containment or control systems.
``(ii) The term `underground storage tank'
has the meaning given to it in section 9001,
except that such term does not include tank
combinations or more than a single underground
pipe connected to a tank.
``(iii) The term `installation of a new
motor fuel dispenser system' means the
installation of a new motor fuel dispenser and
the equipment necessary to connect the
dispenser to the underground storage tank
system, but does not mean the installation of a
motor fuel dispenser installed separately from
the equipment need to connect the dispenser to
the underground storage tank system.
``(2) Evidence of financial responsibility and
certification.--
``(A) Manufacturer and installer financial
responsibility.--A person that manufactures an
underground storage tank or piping for an
underground storage tank system or that
installs an underground storage tank system is
required to maintain evidence of financial
responsibility under section 9003(d) in order
to provide for the costs of corrective actions
directly related to releases caused by improper
manufacture or installation unless the person
can demonstrate themselves to be already
covered as an owner or operator of an
underground storage tank under section 9003.
``(B) Installer certification.--The
Administrator and each State that receives
funding under this subtitle, as appropriate,
shall require that a person that installs an
underground storage tank system is--
``(i) certified or licensed by the
tank and piping manufacturer;
``(ii) certified or licensed by the
Administrator or a State, as
appropriate;
``(iii) has their underground
storage tank system installation
certified by a registered professional
engineer with education and experience
in underground storage tank system
installation;
``(iv) has had their installation
of the underground storage tank
inspected andapproved by the
Administrator or the State, as appropriate;
``(v) compliant with a code of
practice developed by a nationally
recognized association or independent
testing laboratory and in accordance
with the manufacturer's instructions;
or
``(vi) compliant with another
method that is determined by the
Administrator or a State, as
appropriate, to be no less protective
of human health and the environment.
``(C) Savings clause.--Nothing in
subparagraph (A) alters or affects the
liability of any owner or operator of an
underground storage tank.''.
(b) Effective Date.--This subsection shall take effect 18
months after the date of enactment of this subsection.
(c) Promulgation of Regulations or Guidelines.--The
Administrator shall issue regulations or guidelines
implementing the requirements of this subsection, including
guidance to differentiate between the terms ``repair'' and
``replace'' for the purposes of section 9003(i)(1) of the Solid
Waste Disposal Act.
(d) Penalties.--Section 9006(d)(2) of such Act (42 U.S.C.
6991e(d)(2)) is amended as follows:
(1) By striking ``or'' at the end of subparagraph
(B).
(2) By inserting ``; or'' at the end of
subparagraph (C).
(3) By adding the following new subparagraph after
subparagraph (C):
``(D) the requirements established in
section 9003(i),''.
SEC. 1531. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--Subtitle I of the Solid Waste Disposal Act
(42 U.S.C. 6991 et seq.) is amended by adding at the end the
following:
``SEC. 9014. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to the
Administrator the following amounts:
``(1) To carry out subtitle I (except sections
9003(h), 9005(c), 9011 and 9012) $50,000,000 for each
of fiscal years 2005 through 2009.
``(2) From the Trust Fund, notwithstanding section
9508(c)(1) of the Internal Revenue Code of 1986:
``(A) to carry out section 9003(h) (except
section 9003(h)(12)) $200,000,000 for each of
fiscal years 2005 through 2009;
``(B) to carry out section 9003(h)(12),
$200,000,000 for each of fiscal years 2005
through 2009;
``(C) to carry out sections 9003(i),
9004(f), and 9005(c) $100,000,000 for each of
fiscal years 2005 through 2009; and
``(D) to carry out sections 9010, 9011,
9012, and 9013 $55,000,000 for each of fiscal
years 2005 through 2009.''.
(b) Table of Contents.--The table of contents for such
subtitle I is amended by adding the following new item at the
end thereof:
``Sec. 9014. Authorization of appropriations''.
SEC. 1532. CONFORMING AMENDMENTS.
(a) In General.--Section 9001 of the Solid Waste Disposal
Act (42 U.S.C. 6991) is amended as follows:
(1) By striking ``For the purposes of this
subtitle--'' and inserting ``In this subtitle:''.
(2) By redesignating paragraphs (1), (2), (3), (4),
(5), (6), (7), and (8) as paragraphs (10), (7), (4),
(3), (8), (5), (2), and (6), respectively.
(3) By inserting before paragraph (2) (as
redesignated by paragraph (2) of this subsection) the
following:
``(1) Indian tribe.--
``(A) In general.--The term `Indian tribe'
means any Indian tribe, band, nation, or other
organized group or community that is recognized
as being eligible for special programs and
services provided by the United States to
Indians because of their status as Indians.
``(B) Inclusions.--The term `Indian tribe'
includes an Alaska Native village, as defined
in or established under the Alaska Native
Claims Settlement Act (43 U.S.C. 1601 et seq.);
and''.
(4) By inserting after paragraph (8) (as
redesignated by paragraph (2) of this subsection) the
following:
``(9) Trust fund.--The term `Trust Fund' means the
Leaking Underground Storage Tank Trust Fund established
by section 9508 of the Internal Revenue Code of
1986.''.
(b) Conforming Amendments.--The Solid Waste Disposal Act
(42 U.S.C. 6901 and following) is amended as follows:
(1) Section 9003(f) (42 U.S.C. 6991b(f)) is
amended--
(A) in paragraph (1), by striking
``9001(2)(B)'' and inserting ``9001(7)(B)'';
and
(B) in paragraphs (2) and (3), by striking
``9001(2)(A)'' each place it appears and
inserting ``9001(7)(A)''.
(2) Section 9003(h) (42 U.S.C. 6991b(h)) is amended
in paragraphs (1), (2)(C), (7)(A), and (11) by striking
``Leaking Underground Storage Tank Trust Fund'' each
place it appears and inserting ``Trust Fund''.
(3) Section 9009 (42 U.S.C. 6991h) is amended--
(A) in subsection (a), by striking
``9001(2)(B)'' and inserting ``9001(7)(B)'';
and
(B) in subsection (d), by striking
``section 9001(1) (A) and (B)'' and inserting
``subparagraphs (A) and (B) of section
9001(10)''.
SEC. 1533. TECHNICAL AMENDMENTS.
The Solid Waste Disposal Act is amended as follows:
(1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is
amended by striking ``sustances'' and inserting
``substances''.
(2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is
amended by striking ``subsection (c) and (d) of this
section'' and inserting ``subsections (c) and (d)''.
(3) Section 9004(a) (42 U.S.C. 6991c(a)) is amended
by striking ``in 9001(2) (A) or (B) or both'' and
inserting ``in subparagraph (A) or (B) of section
9001(7)''.
(4) Section 9005 (42 U.S.C. 6991d) is amended--
(A) in subsection (a), by striking ``study
taking'' and inserting ``study, taking'';
(B) in subsection (b)(1), by striking
``relevent'' and inserting ``relevant''; and
(C) in subsection (b)(4), by striking
``Evironmental'' and inserting
``Environmental''.
Subtitle C--Boutique Fuels
SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE FUELS.
(a) Temporary Waivers During Supply Emergencies.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)(C)) is
amended by inserting ``(i)'' after ``(C)'' and by adding the
following new clauses at the end thereof:
``(ii) The Administrator may temporarily waive a control or
prohibition respecting the use of a fuel or fuel additive
required or regulated by the Administrator pursuant to
subsection (c), (h), (i), (k), or (m) of this section or
prescribed in an applicable implementation plan under section
110 approved by the Administrator under clause (i) of this
subparagraph if, after consultation with, and concurrence by,
the Secretary of Energy, the Administrator determines that--
``(I) extreme and unusual fuel or fuel additive
supply circumstances exist in a State or region of the
Nation which prevent the distribution of an adequate
supply of the fuel or fuel additive to consumers;
``(II) such extreme and unusual fuel and fuel
additive supply circumstances are the result of a
natural disaster, an Act of God, a pipeline or refinery
equipment failure, or another event that could not
reasonably have been foreseen or prevented and not the
lack of prudent planning on the part of the suppliers
of the fuel or fuel additive to such State or region;
and
``(III) it is in the public interest to grant the
waiver (for example, when a waiver is necessary to meet
projected temporary shortfalls in the supply of the
fuel or fuel additive in a State or region of the
Nation which cannot otherwise be compensated for).
``(iii) If the Administrator makes the determinations
required under clause (ii), such a temporary extreme and
unusual fuel and fuel additive supply circumstances waiver
shall be permitted only if--
``(I) the waiver applies to the smallest geographic
area necessary to address the extreme and unusual fuel
and fuel additive supply circumstances;
``(II) the waiver is effective for a period of 20
calendar days or, if the Administrator determines that
a shorter waiver period is adequate, for the shortest
practicable time period necessary to permit the
correction of the extreme and unusual fuel and fuel
additive supply circumstances and to mitigate impact on
air quality;
``(III) the waiver permits a transitional period,
the exact duration of which shall be determined by the
Administrator (but which shall be for the shortest
practicable period), after the termination of the
temporary waiver to permit wholesalers and retailers to
blend down their wholesale and retail inventory;
``(IV) the waiver applies to all persons in the
motor fuel distribution system; and
``(V) the Administrator has given public notice to
all parties in the motor fuel distribution system, and
local and State regulators, in the State or region to
be covered by the waiver.
The term `motor fuel distribution system' as used in this
clause shall be defined by the Administrator through
rulemaking.
``(iv) Within 180 days of the date of enactment of this
clause, the Administrator shall promulgate regulations to
implement clauses (ii) and (iii).
``(v) Nothing in this subparagraph shall--
``(I) limit or otherwise affect the application of
any other waiver authority of the Administrator
pursuant to this section or pursuant to a regulation
promulgated pursuant to this section; and
``(II) subject any State or person to an
enforcement action, penalties, or liability solely
arising from actions taken pursuant to the issuance of
a waiver under this subparagraph.''.
(b) Limit on Number of Boutique Fuels.--Section
211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)), as
amended by subsection (a), is further amended by adding at the
end the following:
``(v)(I) The Administrator shall have no authority, when
considering a State implementation plan or a State
implementation plan revision, to approve under this paragraph
any fuel included in such plan or revision if the effect of
such approval increases the total number of fuels approved
under this paragraph as of September 1, 2004, in all State
implementation plans.
``(II) The Administrator, in consultation with the
Secretary of Energy, shall determine the total number of fuels
approved under this paragraph as of September 1, 2004, in all
State implementation plans and shall publish a list of such
fuels, including the states and Petroleum Administration for
Defense District in which they are used, in the Federal
Register for public review and comment no later than 90 days
after enactment.
``(III) The Administrator shall remove a fuel from the list
published under subclause (II) if a fuel ceases to be included
in a State implementation plan or if a fuel in a State
implementation plan is identical to a Federal fuel formulation
implemented by the Administrator, but the Administrator shall
not reduce the total number of fuels authorized under the list
published under subclause (II).
``(IV) Subclause (I) shall not limit the Administrator's
authority to approve a control or prohibition respecting any
new fuel under this paragraph in a State implementation plan or
revision to a State implementation plan if such new fuel:
``(aa) completely replaces a fuel on the list
published under subclause (II); or
``(bb) does not increase the total number of fuels
on the list published under subclause (II) as of
September 1, 2004.
In the event that the total number of fuels on the list
published under subclause (II) at the time of the
Administrator's consideration of a control or prohibition
respecting a new fuel is lower than the total number of fuels
on such list as of September 1, 2004, the Administrator may
approve a control or prohibition respecting a new fuel under
this subclause if the Administrator, after consultation with
the Secretary of Energy, publishes in the Federal Register
after notice and comment a finding that, in the Administrator's
judgment, such control or prohibition respecting a new fuel
will not cause fuel supply or distribution interruptions or
have a significant adverse impact on fuel producibility in the
affected area or contiguous areas.
``(V) The Administrator shall have no authority under this
paragraph, when considering any particular State's
implementation plan or a revision to that State's
implementation plan, to approve any fuel unless that fuel was,
as of the date of such consideration, approved in at least one
State implementation plan in the applicable Petroleum
Administration for Defense District. However, the Administrator
may approve as part of a State implementation plan or State
implementation plan revision a fuel with a summertime Reid
Vapor Pressure of 7.0 psi. In no event shall such approval by
the Administrator cause an increase in the total number of
fuels on the list published under subclause (II).
``(VI) Nothing in this clause shall be construed to have
any effect regarding any available authority of States to
require the use of any fuel additive registered in accordance
with subsection (b), including any fuel additive registered in
accordance with subsection (b) after the enactment of this
subclause.''.
(c) Study and Report to Congress on Boutique Fuels.--
(1) Joint study.--The Administrator of the
Environmental Protection Agency and the Secretary shall
undertake a study of the effects on air quality, on the
number of fuel blends, on fuel availability, on fuel
fungibility, and on fuel costs of the State plan
provisions adopted pursuant to section 211(c)(4)(C) of
the Clean Air Act (42 U.S.C. 7545(c)(4)(C)).
(2) Focus of study.--The primary focus of the study
required under paragraph (1) shall be to determine how
to develop a Federal fuels system that maximizes motor
fuel fungibility and supply, addresses air quality
requirements, and reduces motor fuel price volatility
including that which has resulted from the
proliferation of boutique fuels, and to recommend to
Congress such legislative changes as are necessary to
implement such a system. The study should include the
impacts on overall energy supply, distribution, and use
as a result of the legislative changes recommended.
(3) Conduct of study.--In carrying out their joint
duties under this section, the Administrator and the
Secretary shall use sound science and objective science
practices, shall consider the best available science,
shall use data collected by accepted means and shall
consider and include a description of the weight of the
scientific evidence. The Administrator and the
Secretary shall coordinate the study required by this
section with other studies required by the act.
(4) Responsibility of administrator.--In carrying
out the study required by this section, the
Administrator shall coordinate obtaining comments from
affected parties interested in the air quality impact
assessment portion of the study.
(5) Responsibility of secretary.--In carrying out
the study required by this section, the Secretary shall
coordinate obtaining comments from affected parties
interested in the fuel availability, number of fuel
blends, fuel fungibility and fuel costs portion of the
study.
(6) Report to congress.--The Administrator and the
Secretary jointly shall submit the results of the study
required by this section in a report to the Congress
not later than 12 months after the date of the
enactment of this Act, together with any recommended
regulatory and legislative changes. Such report shall
be submitted to the Committee on Energy and Commerce of
the United States House of Representatives and the
Committees on Energy and Natural Resources and on
Environment and Public Works of the United States
Senate.
(7) Authorization of appropriations.--There is
authorized to be appropriated jointly to the
Administrator and the Secretary $500,000 for the
completion of the study required under this subsection.
(d) Definitions.--In this section:
(1) The term ``Administrator'' means the
Administrator of the Environmental Protection Agency.
(2) The term ``fuel'' means gasoline, diesel fuel,
and any other liquid petroleum product commercially
known as gasoline and diesel fuel for use in highway
and nonroad motor vehicles.
(3) The term ``a control or prohibition respecting
a new fuel'' means a control or prohibition on the
formulation, composition, or emissions characteristics
of a fuel that would require the increase or decrease
of a constituent in gasoline or diesel fuel.
TITLE XVI--CLIMATE CHANGE
Subtitle A--National Climate Change Technology Deployment
SEC. 1601. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY STRATEGIES.
Title XVI of the Energy Policy Act of 1992 (42 U.S.C. 13381
et seq.) is amended by adding at the end the following:
``SEC. 1610. GREENHOUSE GAS INTENSITY REDUCING STRATEGIES.
``(a) Definitions.--In this section:
``(1) Advisory committee.--The term `Advisory
Committee' means the Climate Change Technology Advisory
Committee established under subsection (f)(1).
``(2) Carbon sequestration.--The term `carbon
sequestration' means the capture of carbon dioxide
through terrestrial, geological, biological, or other
means, which prevents the release of carbon dioxide
into the atmosphere.
``(3) Committee.--The term `Committee' means the
Committee on Climate Change Technology established
under subsection (b)(1).
``(4) Developing country.--The term `developing
country' has the meaning given the term in section
1608(m).
``(5) Greenhouse gas.--The term `greenhouse gas'
means--
``(A) carbon dioxide;
``(B) methane;
``(C) nitrous oxide;
``(D) hydrofluorocarbons;
``(E) perfluorocarbons; and
``(F) sulfur hexafluoride.
``(6) Greenhouse gas intensity.--The term
`greenhouse gas intensity' means the ratio of
greenhouse gas emissions to economic output.
``(7) National laboratory.--The term `National
Laboratory' has the meaning given the term in section
3(3) of the Energy Policy Act of 2005.
``(b) Committee on Climate Change Technology.--
``(1) In general.--Not later than 180 days after
the date of enactment of this section, the President
shall establish a Committee on Climate Change
Technology to--
``(A) integrate current Federal climate
reports; and
``(B) coordinate Federal climate change
technology activities and programs carried out
in furtherance of the strategy developed under
subsection (c)(1).
``(2) Membership.--The Committee shall be composed
of at least 7 members, including--
``(A) the Secretary, who shall chair the
Committee;
``(B) the Secretary of Commerce;
``(C) the Chairman of the Council on
Environmental Quality;
``(D) the Secretary of Agriculture;
``(E) the Administrator of the
Environmental Protection Agency;
``(F) the Secretary of Transportation;
``(G) the Director of the Office of Science
and Technology Policy; and
``(H) other representatives as may be
determined by the President.
``(3) Staff.--The members of the Committee shall
provide such personnel as are necessary to enable the
Committee to perform its duties.
``(c) National Climate Change Technology Policy.--
``(1) In general.--Not later than 18 months after
the date of enactment of this section, the Committee
shall, based on applicable Federal climate reports,
submit to the Secretary and the President a national
strategy to promote the deployment and
commercialization of greenhouse gas intensity reducing
technologies and practices developed through research
and development programs conducted by the National
Laboratories, other Federal research facilities,
institutions of higher education, and the private
sector.
``(2) Updates.--The Committee shall--
``(A) at the time of submission of the
strategy to the President under paragraph (1),
also make the strategy available to the public;
and
``(B) update the strategy every 5 years, or
more frequently as the Committee determines to
be necessary.
``(d) Climate Change Technology Program.--Not later than
180 days after the date on which the Committee is established
under subsection (b)(1), the Secretary, in consultation with
the Committee, shall establish within the Department of Energy
the Climate Change Technology Program to--
``(1) assist the Committee in the interagency
coordination of climate change technology research,
development, demonstration, and deployment to reduce
greenhouse gas intensity; and
``(2) carry out the programs authorized under this
section.
``(e) Technology Inventory.--
``(1) In general.--The Secretary shall conduct and
make public an inventory and evaluation of greenhouse
gas intensity reducing technologies that have been
developed, or are under development, by the National
Laboratories, other Federal research facilities,
institutions of higher education, and the private
sector to determine which technologies are suitable for
commercialization and deployment.
``(2) Report.--Not later than 180 days after the
completion of the inventory under paragraph (1), the
Secretary shall submit to Congress a report that
includes the results of the completed inventory and any
recommendations of the Secretary.
``(3) Use.--The Secretary shall use the results of
the inventory as guidance in the commercialization and
deployment of greenhouse gas intensity reducing
technologies.
``(4) Updated inventory.--The Secretary shall--
``(A) periodically update the inventory
under paragraph (1), including when determined
necessary by the Committee; and
``(B) make the updated inventory available
to the public.
``(f) Climate Change Technology Advisory Committee.--
``(1) In general.--The Secretary, in consultation
with the Committee, may establish under section 624 of
the Department of Energy Organization Act (42 U.S.C.
7234) a Climate Change Technology Advisory Committee to
identify statutory, regulatory, economic, and other
barriers to the commercialization and deployment of
greenhouse gas intensity reducing technologies and
practices in the United States.
``(2) Composition.--The Advisory Committee shall be
composed of the following members, to be appointed by
the Secretary, in consultation with the Committee:
``(A) 1 representative shall be appointed
from each National Laboratory.
``(B) 3 members shall be representatives of
energy-producing trade organizations.
``(C) 3 members shall represent energy-
intensive trade organizations.
``(D) 3 members shall represent groups that
represent end-use energy and other consumers.
``(E) 3 members shall be employees of the
Federal Government who are experts in energy
technology, intellectual property, and tax.
``(F) 3 members shall be representatives of
institutions of higher education with expertise
in energy technology development that are
recommended by the National Academy of
Engineering.
``(3) Report.--Not later than 1 year after the date
of enactment of this section and annually thereafter,
the Advisory Committee shall submit to the Committee a
report that describes--
``(A) the findings of the Advisory
Committee; and
``(B) any recommendations of the Advisory
Committee for the removal or reduction of
barriers to commercialization, deployment, and
increasing the use of greenhouse gas intensity
reducing technologies and practices.
``(g) Greenhouse Gas Intensity Reducing Technology
Deployment.--
``(1) In general.--Based on the strategy developed
under subsection (c)(1), the technology inventory
conducted under subsection (e)(1), the greenhouse gas
intensity reducing technology study report submitted
under subsection (e)(2), and reports under subsection
(f)(3), if any, the Committee shall develop
recommendations that would provide for the removal of
domestic barriers to the commercialization and
deployment of greenhouse gas intensity reducing
technologies and practices.
``(2) Requirements.--In developing the
recommendations under paragraph (1), the Committee
shall consider in the aggregate--
``(A) the cost-effectiveness of the
technology;
``(B) fiscal and regulatory barriers;
``(C) statutory and other barriers; and
``(D) intellectual property issues.
``(3) Demonstration projects.--In developing
recommendations under paragraph (1), the Committee may
identify the need for climate change technology
demonstration projects.
``(4) Report.--Not later than 18 months after the
date of enactment of this section, the Committee shall
submit to the President and Congress a report that--
``(A) identifies, based on the report
submitted under subsection (f)(3), any barriers
to, and commercial risks associated with, the
deployment of greenhouse gas intensity reducing
technologies; and
``(B) includes a plan for carrying out
demonstration projects.
``(5) Updates.--The Committee shall--
``(A) at the time of submission of the
report to Congress under paragraph (4), also
make the report available to the public; and
``(B) update the report every 5 years, or
more frequently as the Committee determines to
be necessary.
``(h) Procedures for Calculating, Monitoring, and Analyzing
Greenhouse Gas Intensity.--The Secretary, in collaboration with
the Committee and the National Institute of Standards and
Technology, and after public notice and opportunity for
comment, shall develop standards and best practices for
calculating, monitoring, and analyzing greenhouse gas
intensity.
``(i) Demonstration Projects.--
``(1) In general.--The Secretary shall, subject to
the availability of appropriations, support
demonstration projects that--
``(A) increase the reduction of the
greenhouse gas intensity to levels below that
which would be achieved by technologies being
used in the United States as of the date of
enactment of this section;
``(B) maximize the potential return on
Federal investment;
``(C) demonstrate distinct roles in public-
private partnerships;
``(D) produce a large-scale reduction of
greenhouse gas intensity if commercialization
occurred; and
``(E) support a diversified portfolio to
mitigate the uncertainty associated with a
single technology.
``(2) Cost sharing.--In supporting a demonstration
project under this subsection, the Secretary shall
require cost-sharing in accordance with section 988 of
the Energy Policy Act of 2005.
``(3) Authorization of appropriations.--There are
authorized to be appropriated such sums as are
necessary to carry out this subsection.
``(j) Cooperative Research and Development Agreements.--In
carrying out greenhouse gas intensity reduction research and
technology deployment activities under this subtitle, the
Secretary may enter into cooperative research and development
agreements under section 12 of the Stevenson-Wydler Technology
Innovation Act of 1980 (15 U.S.C. 3710a).''.
Subtitle B--Climate Change Technology Deployment in Developing
Countries
SEC. 1611. CLIMATE CHANGE TECHNOLOGY DEPLOYMENT IN DEVELOPING
COUNTRIES.
The Global Environmental Protection Assistance Act of 1989
(Public Law 101-240; 103 Stat. 2521) is amending by adding at
the end the following:
``PART C--TECHNOLOGY DEPLOYMENT IN DEVELOPING COUNTRIES
``SEC. 731. DEFINITIONS.
``In this part:
``(1) Carbon sequestration.--The term `carbon
sequestration' means the capture of carbon dioxide
through terrestrial, geological, biological, or other
means, which prevents the release of carbon dioxide
into the atmosphere.
``(2) Greenhouse gas.--The term `greenhouse gas'
means carbon dioxide, methane, nitrous oxide,
hydrofluorocarbons, perfluorocarbons, and sulfur
hexafluoride.
``(3) Greenhouse gas intensity.--The term
`greenhouse gas intensity' means the ratio of
greenhouse gas emissions to economic output.
``SEC. 732. REDUCTION OF GREENHOUSE GAS INTENSITY.
``(a) Lead Agency.--
``(1) In general.--The Department of State shall
act as the lead agency for integrating into United
States foreign policy the goal of reducing greenhouse
gas intensity in developing countries.
``(2) Reports.--
``(A) Initial report.--Not later than 180
days after the date of enactment of this part,
the Secretary of State shall submit to the
appropriate authorizing and appropriating
committees of Congress an initial report, based
on the most recent information available to the
Secretary from reliable public sources, that
identifies the 25 developing countries that are
the largest greenhouse gas emitters, including
for each country--
``(i) an estimate of the quantity
and types of energy used;
``(ii) an estimate of the
greenhouse gas intensity of the energy,
manufacturing, agricultural, and
transportation sectors;
``(iii) a description the progress
of any significant projects undertaken
to reduce greenhouse gas intensity;
``(iv) a description of the
potential for undertaking projects to
reduce greenhouse gas intensity;
``(v) a description of any
obstacles to the reduction of
greenhouse gas intensity; and
``(vi) a description of the best
practices learned by the Agency for
International Development from
conducting previous pilot and
demonstration projects to reduce
greenhouse gas intensity.
``(B) Update.--Not later than 18 months
after the date on which the initial report is
submitted under subparagraph (A), the Secretary
shall submit to the appropriate authorizing and
appropriating committees of Congress, based on
the best information available to the
Secretary, an update of the information
provided in the initial report.
``(C) Use.--
``(i) Initial report.--The
Secretary of State shall use the
initial report submitted under
subparagraph (A) to establish baselines
for the developing countries identified
in the report with respect to the
information provided under clauses (i)
and (ii) of that subparagraph.
``(ii) Annual reports.--The
Secretary of State shall use the annual
reports prepared under subparagraph (B)
and any other information available to
the Secretary to track the progress of
the developing countries with respect
to reducing greenhouse gas intensity.
``(b) Projects.--The Secretary of State, in coordination
with Administrator of the United States Agency for
International Development, shall (directly or through
agreements with the World Bank, the International Monetary
Fund, the Overseas Private Investment Corporation, and other
development institutions) provide assistance to developing
countries specifically for projects to reduce greenhouse gas
intensity, including projects to--
``(1) leverage, through bilateral agreements, funds
for reduction of greenhouse gas intensity;
``(2) increase private investment in projects and
activities to reduce greenhouse gas intensity; and
``(3) expedite the deployment of technology to
reduce greenhouse gas intensity.
``(c) Focus.--In providing assistance under subsection (b),
the Secretary of State shall focus on--
``(1) promoting the rule of law, property rights,
contract protection, and economic freedom; and
``(2) increasing capacity, infrastructure, and
training.
``(d) Priority.--In providing assistance under subsection
(b), the Secretary of State shall give priority to projects in
the 25 developing countries identified in the report submitted
under subsection (a)(2)(A).
``SEC. 733. TECHNOLOGY INVENTORY FOR DEVELOPING COUNTRIES.
``(a) In General.--The Secretary of Energy, in coordination
with the Secretary of State and the Secretary of Commerce,
shall conduct an inventory of greenhouse gas intensity reducing
technologies that are developed, or under development in the
United States, to identify technologies that are suitable for
transfer to, deployment in, and commercialization in the
developing countries identified in the report submitted under
section 732(a)(2)(A).
``(b) Report.--Not later than 180 days after the completion
of the inventory under subsection (a), the Secretary of State
and the Secretary of Energy shall jointly submit to Congress a
report that--
``(1) includes the results of the completed
inventory;
``(2) identifies obstacles to the transfer,
deployment, and commercialization of the inventoried
technologies;
``(3) includes results from previous Federal
reports related to the inventoried technologies; and
``(4) includes an analysis of market forces related
to the inventoried technologies.
``SEC. 734. TRADE-RELATED BARRIERS TO EXPORT OF GREENHOUSE GAS
INTENSITY REDUCING TECHNOLOGIES.
``(a) In General.--Not later than 1 year after the date of
enactment of this part, the United States Trade Representative
shall (as appropriate and consistent with applicable bilateral,
regional, and mutual trade agreements)--
``(1) identify trade-relations barriers maintained
by foreign countries to the export of greenhouse gas
intensity reducing technologies and practices from the
United States to the developing countries identified in
the report submitted under section 732(a)(2)(A); and
``(2) negotiate with foreign countries for the
removal of those barriers.
``(b) Annual Report.--Not later than 1 year after the date
on which a report is submitted under subsection (a)(1) and
annually thereafter, the United States Trade Representative
shall submit to Congress a report that describes any progress
made with respect to removing the barriers identified by the
United States Trade Representative under subsection (a)(1).
``SEC. 735. GREENHOUSE GAS INTENSITY REDUCING TECHNOLOGY EXPORT
INITIATIVE.
``(a) In General.--There is established an interagency
working group to carry out a Greenhouse Gas Intensity Reducing
Technology Export Initiative to--
``(1) promote the export of greenhouse gas
intensity reducing technologies and practices from the
United States;
``(2) identify developing countries that should be
designated as priority countries for the purpose of
exporting greenhouse gas intensity reducing
technologies and practices, based on the report
submitted under section 732(a)(2)(A);
``(3) identify potential barriers to adoption of
exported greenhouse gas intensity reducing technologies
and practices based on the reports submitted under
section 734; and
``(4) identify previous efforts to export energy
technologies to learn best practices.
``(b) Composition.--The working group shall be composed
of--
``(1) the Secretary of State, who shall act as the
head of the working group;
``(2) the Administrator of the United States Agency
for International Development;
``(3) the United States Trade Representative;
``(4) a designee of the Secretary of Energy;
``(5) a designee of the Secretary of Commerce; and
``(6) a designee of the Administrator of the
Environmental Protection Agency.
``(c) Performance Reviews and Reports.--Not later than 180
days after the date of enactment of this part and each year
thereafter, the interagency working group shall--
``(1) conduct a performance review of actions taken
and results achieved by the Federal Government
(including each of the agencies represented on the
interagency working group) to promote the export of
greenhouse gas intensity reducing technologies and
practices from the United States; and
``(2) submit to the appropriate authorizing and
appropriating committees of Congress a report that
describes the results of the performance reviews and
evaluates progress in promoting the export of
greenhouse gas intensity reducing technologies and
practices from the United States, including any
recommendations for increasing the export of the
technologies and practices.
``SEC. 736. TECHNOLOGY DEMONSTRATION PROJECTS.
``(a) In General.--The Secretary of State, in coordination
with the Secretary of Energy and the Administrator of the
United States Agency for International Development, shall
promote the adoption of technologies and practices that reduce
greenhouse gas intensity in developing countries in accordance
with this section.
``(b) Demonstration Projects.--
``(1) In general.--The Secretaries and the
Administrator shall plan, coordinate, and carry out, or
provide assistance for the planning, coordination, or
carrying out of, demonstration projects under this
section in at least 10 eligible countries, as
determined by the Secretaries and the Administrator.
``(2) Eligibility.--A country shall be eligible for
assistance under this subsection if the Secretaries and
the Administrator determine that the country has
demonstrated a commitment to--
``(A) just governance, including--
``(i) promoting the rule of law;
``(ii) respecting human and civil
rights;
``(iii) protecting private property
rights; and
``(iv) combating corruption; and
``(B) economic freedom, including economic
policies that--
``(i) encourage citizens and firms
to participate in global trade and
international capital markets;
``(ii) promote private sector
growth and the sustainable management
of natural resources; and
``(iii) strengthen market forces in
the economy.
``(3) Selection.--In determining which eligible
countries to provide assistance to under paragraph (1),
the Secretaries and the Administrator shall consider--
``(A) the opportunity to reduce greenhouse
gas intensity in the eligible country; and
``(B) the opportunity to generate economic
growth in the eligible country.
``(4) Types of projects.--Demonstration projects
under this section may include--
``(A) coal gasification, coal liquefaction,
and clean coal projects;
``(B) carbon sequestration projects;
``(C) cogeneration technology initiatives;
``(D) renewable projects; and
``(E) lower emission transportation.
``SEC. 737. FELLOWSHIP AND EXCHANGE PROGRAMS.
``The Secretary of State, in coordination with the
Secretary of Energy, the Secretary of Commerce, and the
Administrator of the Environmental Protection Agency, shall
carry out fellowship and exchange programs under which
officials from developing countries visit the United States to
acquire expertise and knowledge of best practices to reduce
greenhouse gas intensity in their countries.
``SEC. 738. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated such sums as are
necessary to carry out this part.
``SEC. 739. EFFECTIVE DATE.
``Except as otherwise provided in this part, this part
takes effect on October 1, 2005.''.
TITLE XVII--INCENTIVES FOR INNOVATIVE TECHNOLOGIES
SEC. 1701. DEFINITIONS.
In this title:
(1) Commercial technology.--
(A) In general.--The term ``commercial
technology'' means a technology in general use
in the commercial marketplace.
(B) Inclusions.--The term ``commercial
technology'' does not include a technology
solely by use of the technology in a
demonstration project funded by the Department.
(2) Cost.--The term ``cost'' has the meaning given
the term ``cost of a loan guarantee'' within the
meaning of section 502(5)(C) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
(3) Eligible project.--The term ``eligible
project'' means a project described in section 1703.
(4) Guarantee.--
(A) In general.--The term ``guarantee'' has
the meaning given the term ``loan guarantee''
in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a).
(B) Inclusion.--The term ``guarantee''
includes a loan guarantee commitment (as
defined in section 502 of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a)).
(5) Obligation.--The term ``obligation'' means the
loan or other debt obligation that is guaranteed under
this section.
SEC. 1702. TERMS AND CONDITIONS.
(a) In General.--Except for division C of Public Law 108-
324, the Secretary shall make guarantees under this or any
other Act for projects on such terms and conditions as the
Secretary determines, after consultation with the Secretary of
the Treasury, only in accordance with this section.
(b) Specific Appropriation or Contribution.--No guarantee
shall be made unless--
(1) an appropriation for the cost has been made; or
(2) the Secretary has received from the borrower a
payment in full for the cost of the obligation and
deposited the payment into the Treasury.
(c) Amount.--Unless otherwise provided by law, a guarantee
by the Secretary shall not exceed an amount equal to 80 percent
of the project cost of the facility that is the subject of the
guarantee, as estimated at the time at which the guarantee is
issued.
(d) Repayment.--
(1) In general.--No guarantee shall be made unless
the Secretary determines that there is reasonable
prospect of repayment of the principal and interest on
the obligation by the borrower.
(2) Amount.--No guarantee shall be made unless the
Secretary determines that the amount of the obligation
(when combined with amounts available to the borrower
from other sources) will be sufficient to carry out the
project.
(3) Subordination.--The obligation shall be subject
to the condition that the obligation is not subordinate
to other financing.
(e) Interest Rate.--An obligation shall bear interest at a
rate that does not exceed a level that the Secretary determines
appropriate, taking into account the prevailing rate of
interest in the private sector for similar loans and risks.
(f) Term.--The term of an obligation shall require full
repayment over a period not to exceed the lesser of--
(1) 30 years; or
(2) 90 percent of the projected useful life of the
physical asset to be financed by the obligation (as
determined by the Secretary).
(g) Defaults.--
(1) Payment by secretary.--
(A) In general.--If a borrower defaults on
the obligation (as defined in regulations
promulgated by the Secretary and specified in
the guarantee contract), the holder of the
guarantee shall have the right to demand
payment of the unpaid amount from the
Secretary.
(B) Payment required.--Within such period
as may be specified in the guarantee or related
agreements, the Secretary shall pay to the
holder of the guarantee the unpaid interest on,
and unpaid principal of the obligation as to
which the borrower has defaulted, unless the
Secretary finds that there was no default by
the borrower in the payment of interest or
principal or that the default has been
remedied.
(C) Forbearance.--Nothing in this
subsection precludes any forbearance by the
holder of the obligation for the benefit of the
borrower which may be agreed upon by the
parties to the obligation and approved by the
Secretary.
(2) Subrogation.--
(A) In general.--If the Secretary makes a
payment under paragraph (1), the Secretary
shall be subrogated to the rights of the
recipient of the payment as specified in the
guarantee or related agreements including,
where appropriate, the authority
(notwithstanding any other provision of law)
to--
(i) complete, maintain, operate,
lease, or otherwise dispose of any
property acquired pursuant to such
guarantee or related agreements; or
(ii) permit the borrower, pursuant
to an agreement with the Secretary, to
continue to pursue the purposes of the
project if the Secretary determines
this to be in the public interest.
(B) Superiority of rights.--The rights of
the Secretary, with respect to any property
acquired pursuant to a guarantee or related
agreements, shall be superior to the rights of
any other person with respect to the property.
(C) Terms and conditions.--A guarantee
agreement shall include such detailed terms and
conditions as the Secretary determines
appropriate to--
(i) protect the interests of the
United States in the case of default;
and
(ii) have available all the patents
and technology necessary for any person
selected, including the Secretary, to
complete and operate the project.
(3) Payment of principal and interest by
secretary.--With respect to any obligation guaranteed
under this section, the Secretary may enter into a
contract to pay, and pay, holders of the obligation,
for and on behalf of the borrower, from funds
appropriated for that purpose, the principal and
interest payments which become due and payable on the
unpaid balance of the obligation if the Secretary finds
that--
(A)(i) the borrower is unable to meet the
payments and is not in default;
(ii) it is in the public interest to permit
the borrower to continue to pursue the purposes
of the project; and
(iii) the probable net benefit to the
Federal Government in paying the principal and
interest will be greater than that which would
result in the event of a default;
(B) the amount of the payment that the
Secretary is authorized to pay shall be no
greater than the amount of principal and
interest that the borrower is obligated to pay
under the agreement being guaranteed; and
(C) the borrower agrees to reimburse the
Secretary for the payment (including interest)
on terms and conditions that are satisfactory
to the Secretary.
(4) Action by attorney general.--
(A) Notification.--If the borrower defaults
on an obligation, the Secretary shall notify
the Attorney General of the default.
(B) Recovery.--On notification, the
Attorney General shall take such action as is
appropriate to recover the unpaid principal and
interest due from--
(i) such assets of the defaulting
borrower as are associated with the
obligation; or
(ii) any other security pledged to
secure the obligation.
(h) Fees.--
(1) In general.--The Secretary shall charge and
collect fees for guarantees in amounts the Secretary
determines are sufficient to cover applicable
administrative expenses.
(2) Availability.--Fees collected under this
subsection shall--
(A) be deposited by the Secretary into the
Treasury; and
(B) remain available until expended,
subject to such other conditions as are
contained in annual appropriations Acts.
(i) Records; Audits.--
(1) In general.--A recipient of a guarantee shall
keep such records and other pertinent documents as the
Secretary shall prescribe by regulation, including such
records as the Secretary may require to facilitate an
effective audit.
(2) Access.--The Secretary and the Comptroller
General of the United States, or their duly authorized
representatives, shall have access, for the purpose of
audit, to the records and other pertinent documents.
(j) Full Faith and Credit.--The full faith and credit of
the United States is pledged to the payment of all guarantees
issued under this section with respect to principal and
interest.
SEC. 1703. ELIGIBLE PROJECTS.
(a) In General.--The Secretary may make guarantees under
this section only for projects that--
(1) avoid, reduce, or sequester air pollutants or
anthropogenic emissions of greenhouse gases; and
(2) employ new or significantly improved
technologies as compared to commercial technologies in
service in the United States at the time the guarantee
is issued.
(b) Categories.--Projects from the following categories
shall be eligible for a guarantee under this section:
(1) Renewable energy systems.
(2) Advanced fossil energy technology (including
coal gasification meeting the criteria in subsection
(d)).
(3) Hydrogen fuel cell technology for residential,
industrial or -transportation applications.
(4) Advanced nuclear energy facilities.
(5) Carbon capture and sequestration practices and
technologies, including agricultural and forestry
practices that store and sequester carbon.
(6) Efficient electrical generation, transmission,
and distribution technologies.
(7) Efficient end-use energy technologies.
(8) Production facilities for fuel efficient
vehicles, including hybrid and advanced diesel
vehicles.
(9) Pollution control equipment.
(10) Refineries, meaning facilities at which crude
oil is refined into gasoline.
(c) Gasification Projects.--The Secretary may make
guarantees for the following gasification projects:
(1) Integrated gasification combined cycle
projects.--Integrated gasification combined cycle
plants meeting the emission levels under subsection
(d), including--
(A) projects for the generation of
electricity--
(i) for which, during the term of
the guarantee--
(I) coal, biomass,
petroleum coke, or a
combination of coal, biomass,
and petroleum coke will account
for at least 65 percent of
annual heat input; and
(II) electricity will
account for at least 65 percent
of net useful annual energy
output;
(ii) that have a design that is
determined by the Secretary to be
capable of accommodating the equipment
likely to be necessary to capture the
carbon dioxide that would otherwise be
emitted in flue gas from the plant;
(iii) that have an assured revenue
stream that covers project capital and
operating costs (including servicing
all debt obligations covered by the
guarantee) that is approved by the
Secretary and the relevant State public
utility commission; and
(iv) on which construction
commences not later than the date that
is 3 years after the date of the
issuance of the guarantee;
(B) a project to produce energy from coal
(of not more than 13,000 Btu/lb and mined in
the western United States) using appropriate
advanced integrated gasification combined cycle
technology that minimizes and offers the
potential to sequester carbon dioxide emissions
and that--
(i) may include repowering of
existing facilities;
(ii) may be built in stages;
(iii) shall have a combined output
of at least 100 megawatts;
(iv) shall be located in a western
State at an altitude greater than 4,000
feet; and
(v) shall demonstrate the ability
to use coal with an energy content of
not more than 9,000 Btu/lb;
(C) a project located in a taconite-
producing region of the United States that is
entitled under the law of the State in which
the plant is located to enter into a long-term
contract approved by a State public utility
commission to sell at least 450 megawatts of
output to a utility;
(D) facilities that--
(i) generate 1 or more hydrogen-
rich and carbon monoxide-rich product
streams from the gasification of coal
or coal waste; and
(ii) use those streams to
facilitate the production of ultra
clean premium fuels through the
Fischer-Tropsch process; and
(E) a project to produce energy and clean
fuels, using appropriate coal liquefaction
technology, from Western bituminous or
subbituminous coal, that--
(i) is owned by a State government;
and
(ii) may include tribal and private
coal resources.
(2) Industrial gasification projects.--Facilities
that gasify coal, biomass, or petroleum coke in any
combination to produce synthesis gas for use as a fuel
or feedstock and for which electricity accounts for
less than 65 percent of the useful energy output of the
facility.
(3) Petroleum coke gasification projects.--The
Secretary is encouraged to make loan guarantees under
this title available for petroleum coke gasification
projects.
(4) Liquifaction project.--Notwithstanding any
other provision of law, funds awarded under the clean
coal power initiative under subtitle A of title IV for
coal-to-oil liquefaction projects may be used to
finance the cost of loan guarantees for projects
awarded such funds.
(d) Emission Levels.--In addition to any other applicable
Federal or State emission limitation requirements, a project
shall attain at least--
(1) total sulfur dioxide emissions in flue gas from
the project that do not exceed 0.05 lb/mmBTU;
(2) a 90-percent removal rate (including any fuel
pretreatment) of mercury from the coal-derived gas, and
any other fuel, combusted by the project;
(3) total nitrogen oxide emissions in the flue gas
from the project that do not exceed 0.08 lb/mmBTU; and
(4) total particulate emissions in the flue gas
from the project that do not exceed 0.01 lb/mmBTU.
(e) Qualification of Facilities Receiving Tax Credits.--A
project that receives tax credits for clean coal technology
shall not be disqualified from receiving a guarantee under this
title.
SEC. 1704. AUTHORIZATION OF APPROPRIATIONS.
(a) In General.--There are authorized to be appropriated
such sums as are necessary to provide the cost of guarantees
under this title.
(b) Use of Other Appropriated Funds.--The Department may
use amounts awarded under the clean coal power initiative under
subtitle A of title IV to carry out the project described in
section 1703(c)(1)(C), on the request of the recipient of such
award, for a loan guarantee, to the extent that the amounts
have not yet been disbursed to, or have been repaid by, the
recipient.
TITLE XVIII--STUDIES
SEC. 1801. 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 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 United States
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 1 year after the
date of enactment of this Act, the Secretary shall submit a
report to Congress on the results of the study, including
findings and any recommendations for preventing future supply
shortages.
SEC. 1802. STUDY OF ENERGY EFFICIENCY STANDARDS.
The Secretary shall contract with the National Academy of
Sciences for a study, to be completed within 1 year after the
date of enactment of this Act, 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 to Congress.
SEC. 1803. TELECOMMUTING STUDY.
(a) Study Required.--The Secretary, in consultation with
the Commission, the Director of the Office of Personnel
Management, the Administrator of General Services, and the
Administrator of NTIA, shall conduct a study of the energy
conservation implications of the widespread adoption of
telecommuting by Federal employees in the United States.
(b) Required Subjects of Study.--The study required by
subsection (a) shall analyze the following subjects in relation
to the energy saving potential of telecommuting by Federal
employees:
(1) Reductions of energy use and energy costs in
commuting and regular office heating, cooling, and
other operations.
(2) Other energy reductions accomplished by
telecommuting.
(3) Existing regulatory barriers that hamper
telecommuting, including barriers to broadband
telecommunications services deployment.
(4) Collateral benefits to the environment, family
life, and other values.
(c) Report Required.--The Secretary shall submit to the
President and Congress a report on the study required by this
section not later than 6 months after the date of enactment of
this Act. Such report shall include a description of the
results of the analysis of each of the subject described in
subsection (b).
(d) Definitions.--As used in this section:
(1) Commission.--The term ``Commission'' means the
Federal Communications Commission.
(2) NTIA.--The term ``NTIA'' means the National
Telecommunications and Information Administration of
the Department of Commerce.
(3) Telecommuting.--The term ``telecommuting''
means the performance of work functions using
communications technologies, thereby eliminating or
substantially reducing the need to commute to and from
traditional worksites.
(4) Federal employee.--The term ``Federal
employee'' has the meaning provided the term
``employee'' by section 2105 of title 5, United States
Code.
SEC. 1804. LIHEAP REPORT.
Not later than 1 year after the date of enactment of this
Act, the Secretary of Health and Human Services shall transmit
to Congress a report on how the Low-Income Home Energy
Assistance Program could be used more effectively to prevent
loss of life from extreme temperatures. In preparing such
report, the Secretary shall consult with appropriate officials
in all 50 States and the District of Columbia.
SEC. 1805. OIL BYPASS FILTRATION TECHNOLOGY.
The Secretary and the Administrator of the Environmental
Protection Agency shall--
(1) conduct a joint study of the benefits of oil
bypass filtration technology in reducing demand for oil
and protecting the environment;
(2) examine the feasibility of using oil bypass
filtration technology in Federal motor vehicle fleets;
and
(3) include in such study, prior to any
determination of the feasibility of using oil bypass
filtration technology, the evaluation of products and
various manufacturers.
SEC. 1806. TOTAL INTEGRATED THERMAL SYSTEMS.
The Secretary shall--
(1) conduct a study of the benefits of total
integrated thermal systems in reducing demand for oil
and protecting the environment; and
(2) examine the feasibility of using total
integrated thermal systems in Department of Defense and
other Federal motor vehicle fleets.
SEC. 1807. REPORT ON ENERGY INTEGRATION WITH LATIN AMERICA.
The Secretary shall submit an annual report to the
Committee on Energy and Commerce of the United States House of
Representatives and to the Committee on Energy and Natural
Resources of the United States Senate concerning the status of
energy export development in Latin America and efforts by the
Secretary and other departments and agencies of the United
States to promote energy integration with Latin America. The
report shall contain a detailed analysis of the status of
energy export development in Mexico and a description of all
significant efforts by the Secretary and other departments and
agencies to promote a constructive relationship with Mexico
regarding the development of that nation's energy capacity. In
particular this report shall outline efforts the Secretary and
other departments and agencies have made to ensure that
regulatory approval and oversight of United States/Mexico
border projects that result in the expansion of Mexican energy
capacity are effectively coordinated across departments and
with the Mexican government.
SEC. 1808. LOW-VOLUME GAS RESERVOIR STUDY.
(a) Study.--The Secretary shall make a grant to an
organization of oil and gas producing States, specifically
those containing significant numbers of marginal oil and
natural gas wells, for conducting an annual study of low-volume
natural gas reservoirs. Such organization shall work with the
State geologist of each State being studied.
(b) Contents.--The studies under this section shall--
(1) determine the status and location of marginal
wells and gas reservoirs;
(2) gather the production information of these
marginal wells and reservoirs;
(3) estimate the remaining producible reserves
based on variable pipeline pressures;
(4) locate low-pressure gathering facilities and
pipelines;
(5) recommend incentives which will enable the
continued production of these resources;
(6) produce maps and literature to disseminate to
States to promote conservation of natural gas reserves;
and
(7) evaluate the amount of natural gas that is
being wasted through the practice of venting or flaring
of natural gas produced in association with crude oil
well production.
(c) Data Analysis.--Data development and analysis under
this section shall be performed by an institution of higher
education with GIS capabilities. If the organization receiving
the grant under subsection (a) does not have GIS capabilities,
such organization shall contract with one or more entities
with--
(1) technological capabilities and resources to
perform advanced image processing, GIS programming, and
data analysis; and
(2) the ability to--
(A) process remotely sensed imagery with
high spatial resolution;
(B) deploy global positioning systems;
(C) process and synthesize existing,
variable-format gas well, pipeline, gathering
facility, and reservoir data;
(D) create and query GIS databases with
infrastructure location and attribute
information;
(E) write computer programs to customize
relevant GIS software;
(F) generate maps, charts, and graphs which
summarize findings from data research for
presentation to different audiences; and
(G) deliver data in a variety of formats,
including Internet Map Server for query and
display, desktop computer display, and access
through handheld personal digital assistants.
(d) Authorization of Appropriations.--There are authorized
to be appropriated to the Secretary for carrying out this
section--
(1) $1,500,000 for fiscal year 2006; and
(2) $450,000 for each of the fiscal years 2007
through 2010.
(e) Definitions.--For purposes of this section, the term
``GIS'' means geographic information systems technology that
facilitates the organization and management of data with a
geographic component.
SEC. 1809. INVESTIGATION OF GASOLINE PRICES.
(a) Investigation.--Not later than 90 days after the date
of enactment of this Act, the Federal Trade Commission shall
conduct an investigation to determine if the price of gasoline
is being artificially manipulated by reducing refinery capacity
or by any other form of market manipulation or price gouging
practices.
(b) Evaluation and Analysis.--The Secretary shall direct
the National Petroleum Council to conduct an evaluation and
analysis to determine whether, and to what extent,
environmental and other regulations affect new domestic
refinery construction and significant expansion of existing
refinery capacity.
(c) Reports to Congress.--
(1) Investigation.--On completion of the
investigation under subsection (a), the Federal Trade
Commission shall submit to Congress a report that
describes--
(A) the results of the investigation; and
(B) any recommendations of the Federal
Trade Commission.
(2) Evaluation and analysis.--On completion of the
evaluation and analysis under subsection (b), the
Secretary shall submit to Congress a report that
describes--
(A) the results of the evaluation and
analysis; and
(B) any recommendations of the National
Petroleum Council.
SEC. 1810. ALASKA NATURAL GAS PIPELINE.
Not later than 180 days after the date of enactment of this
Act, and every 180 days thereafter until the Alaska natural gas
pipeline commences operation, the Federal Energy Regulatory
Commission shall submit to Congress a report describing--
(1) the progress made in licensing and constructing
the pipeline; and
(2) any issue impeding that progress.
SEC. 1811. COAL BED METHANE STUDY.
(a) Study.--
(1) In general.--The Secretary of the Interior, in
consultation with the Administrator of the
Environmental Protection Agency, shall enter into an
arrangement under which the National Academy of
Sciences shall conduct a study on the effect of coalbed
natural gas production on surface and ground water
resources, including ground water aquifiers, in the
States of Montana, Wyoming, Colorado, New Mexico, North
Dakota, and Utah.
(2) Matters to be addressed.--The study shall
address the effectiveness of--
(A) the management of coal bed methane
produced water;
(B) the use of best management practices;
and
(C) various production techniques for coal
bed methane natural gas in minimizing impacts
on water resources.
(b) Data Analysis.--The study shall analyze available
hydrologic, geologic and water quality data, along with--
(1) production techniques, produced water
management techniques, best management practices, and
other factors that can mitigate effects of coal bed
methane development;
(2) the costs associated with mitigation
techniques;
(3) effects on surface or ground water resources,
including drinking water, associated with surface or
subsurface disposal of waters produced during
extraction of coal bed methane; and
(4) any other significant effects on surface or
ground water resources associated with production of
coal-bed methane.
(c) Recommendations.--The study shall analyze the
effectiveness of current mitigation practices of coal bed
methane produced water handling in relation to existing Federal
and State laws and regulations, and make recommendations as to
changes, if any, to Federal law necessary to address adverse
impacts to surface or ground water resources associated with
coal bed methane development.
(d) Completion of Study.--The National Academy of Sciences
shall submit the findings and recommendations of the study to
the Secretary of the Interior and the Administrator of the
Environmental Protection Agency within 12 months after the date
of enactment of this Act, and shall upon completion make the
results of the study available to the public.
(e) Report to Congress.--The Secretary of the Interior and
the Administrator of the Environmental Protection Agency, after
consulting with States, shall report to the Congress within 6
months after receiving the results of the study on--
(1) the findings and recommendations of the study;
(2) the agreement or disagreement of the Secretary
of the Interior and the Administrator of the
Environmental Protection Agency with each of its
findings and recommendations; and
(3) any recommended changes in funding to address
the effects of coal bed methane production on surface
and ground water resources.
SEC. 1812. BACKUP FUEL CAPABILITY STUDY.
(a) Study.--
(1) In general.--The Secretary shall conduct a
study of the effect of obtaining and maintaining liquid
and other fuel backup capability at--
(A) gas-fired power generation facilities;
and
(B) other gas-fired industrial facilities.
(2) Contents.--The study under paragraph (1) shall
address--
(A) the costs and benefits of adding a
different fuel capability to a power gas-fired
power generating or industrial facility, taking
into consideration regional differences;
(B) methods of the Federal Government and
State governments to encourage gas-fired power
generators and industries to develop the
capability to power the facilities using a
backup fuel;
(C) the effect on the supply and cost of
natural gas of--
(i) a balanced portfolio of fuel
choices in power generation and
industrial applications; and
(ii) State regulations that permit
agencies in the State to carry out
policies that encourage the use of
other backup fuels in gas-fired power
generation; and
(D) changes required in the Clean Air Act
(42 U.S.C. 7401 et seq.) to allow natural gas
generators to add clean backup fuel
capabilities.
(b) Report to Congress.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall submit to
Congress a report on the results of the study under subsection
(a), including recommendations regarding future activity of the
Federal Government relating to backup fuel capability.
SEC. 1813. INDIAN LAND RIGHTS-OF-WAY.
(a) Study.--
(1) In general.--The Secretary and the Secretary of
the Interior (referred to in this section as the
``Secretaries'') shall jointly conduct a study of
issues regarding energy rights-of-way on tribal land
(as defined in section 2601 of the Energy Policy Act of
1992 (as amended by section 503)) (referred to in this
section as ``tribal land'').
(2) Consultation.--In conducting the study under
paragraph (1), the Secretaries shall consult with
Indian tribes, the energy industry, appropriate
governmental entities, and affected businesses and
consumers.
(b) Report.--Not later than 1 year after the date of
enactment of this Act, the Secretaries shall submit to Congress
a report on the findings of the study, including--
(1) an analysis of historic rates of compensation
paid for energy rights-of-way on tribal land;
(2) recommendations for appropriate standards and
procedures for determining fair and appropriate
compensation to Indian tribes for grants, expansions,
and renewals of energy rights-of-way on tribal land;
(3) an assessment of the tribal self-determination
and sovereignty interests implicated by applications
for the grant, expansion, or renewal of energy rights-
of-way on tribal land; and
(4) an analysis of relevant national energy
transportation policies relating to grants, expansions,
and renewals of energy rights-of-way on tribal land.
SEC. 1814. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.
Not later than 2 years after the date of enactment of this
section, the Secretary shall transmit to Congress a report
that--
(1) identifies any policies or procedures of a
contractor operating a National Laboratory or single-
purpose research facility that create disincentives to
the temporary or permanent transfer of scientific and
technical personnel among the contractor-operated
National Laboratories or contractor-operated single-
purpose research facilities; and
(2) provides recommendations for improving
interlaboratory exchange of scientific and technical
personnel.
SEC. 1815. INTERAGENCY REVIEW OF COMPETITION IN THE WHOLESALE AND
RETAIL MARKETS FOR ELECTRIC ENERGY.
(a) Task Force.--There is established an inter-agency task
force, to be known as the ``Electric Energy Market Competition
Task Force'' (referred to in this section as the ``task
force''), consisting of 5 members--
(1) 1 of whom shall be an employee of the
Department of Justice, to be appointed by the Attorney
General of the United States;
(2) 1 of whom shall be an employee of the Federal
Energy Regulatory Commission, to be appointed by the
Chairperson of that Commission;
(3) 1 of whom shall be an employee of the Federal
Trade Commission, to be appointed by the Chairperson of
that Commission;
(4) 1 of whom shall be an employee of the
Department, to be appointed by the Secretary; and
(5) 1 of whom shall be an employee of the Rural
Utilities Service, to be appointed by the Secretary of
Agriculture.
(b) Study and Report.--
(1) Study.--The task force shall conduct a study
and analysis of competition within the wholesale and
retail market for electric energy in the United States.
(2) Report.--
(A) Final report.--Not later than 1 year
after the date of enactment of this Act, the
task force shall submit to Congress a final
report on the findings of the task force under
paragraph (1).
(B) Public comment.--Not later than the
date that is 60 days before a final report is
submitted to Congress under subparagraph (A),
the task force shall--
(i) publish in the Federal Register
a draft of the report; and
(ii) provide an opportunity for
public comment on the report.
(c) Consultation.--In conducting the study under subsection
(b), the task force shall consult with and solicit comments
from any advisory entity of the task force, the States,
representatives of the electric power industry, and the public.
SEC. 1816. STUDY OF RAPID ELECTRICAL GRID RESTORATION.
(a) Study.--
(1) In general.--The Secretary shall conduct a
study of the benefits of using mobile transformers and
mobile substations to rapidly restore electrical
service to areas subjected to blackouts as a result
of--
(A) equipment failure;
(B) natural disasters;
(C) acts of terrorism; or
(D) war.
(2) Contents.--The study under paragraph (1) shall
contain an analysis of--
(A) the feasibility of using mobile
transformers and mobile substations to reduce
dependence on foreign entities for key elements
of the electrical grid system of the United
States;
(B) the feasibility of using mobile
transformers and mobile substations to rapidly
restore electrical power to--
(i) military bases;
(ii) the Federal Government;
(iii) communications industries;
(iv) first responders; and
(v) other critical infrastructures,
as determined by the Secretary;
(C) the quantity of mobile transformers and
mobile substations necessary--
(i) to eliminate dependence on
foreign sources for key electrical grid
components in the United States;
(ii) to rapidly deploy technology
to fully restore full electrical
service to prioritized Governmental
functions; and
(iii) to identify manufacturing
sources in existence on the date of
enactment of this Act that have
previously manufactured specialized
mobile transformer or mobile substation
products for Federal agencies.
(b) Report.--
(1) In general.--Not later than 1 year after the
date of enactment of this Act, the Secretary shall
submit to the President and Congress a report on the
study under subsection (a).
(2) Inclusion.--The report shall include a
description of the results of the analysis under
subsection (a)(2).
SEC. 1817. STUDY OF DISTRIBUTED GENERATION.
(a) Study.--
(1) In general.--
(A) Potential benefits.--The Secretary, in
consultation with the Federal Energy Regulatory
Commission, shall conduct a study of the
potential benefits of cogeneration and small
power production.
(B) Recipients.--The benefits described in
subparagraph (A) include benefits that are
received directly or indirectly by--
(i) an electricity distribution or
transmission service provider;
(ii) other customers served by an
electricity distribution or
transmission service provider; and
(iii) the general public in the
area served by the public utility in
which the cogenerator or small power
producer is located.
(2) Inclusions.--The study shall include an
analysis of--
(A) the potential benefits of--
(i) increased system reliability;
(ii) improved power quality;
(iii) the provision of ancillary
services;
(iv) reduction of peak power
requirements through onsite generation;
(v) the provision of reactive power
or volt-ampere reactives;
(vi) an emergency supply of power;
(vii) offsets to investments in
generation, transmission, or
distribution facilities that would
otherwise be recovered through rates;
(viii) diminished land use effects
and right-of-way acquisition costs; and
(ix) reducing the vulnerability of
a system to terrorism; and
(B) any rate-related issue that may impede
or otherwise discourage the expansion of
cogeneration and small power production
facilities, including a review of whether
rates, rules, or other requirements imposed on
the facilities are comparable to rates imposed
on customers of the same class that do not have
cogeneration or small power production.
(3) Valuation of benefits.--In carrying out the
study, the Secretary shall determine an appropriate
method of valuing potential benefits under varying
circumstances for individual cogeneration or small
power production units.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall--
(1) complete the study;
(2) provide an opportunity for public comment on
the results of the study; and
(3) submit to the President and Congress a report
describing--
(A) the results of the study; and
(B) information relating to the public
comments received under paragraph (2).
(c) Publication.--After submission of the report under
subsection (b) to the President and Congress, the Secretary
shall publish the report.
SEC. 1818. NATURAL GAS SUPPLY SHORTAGE REPORT.
(a) In General.--Not later than 180 days after the date of
enactment of this Act, the Secretary shall submit to Congress a
report on natural gas supplies and demand.
(b) Purpose.--The purpose of the report under subsection
(a) is to develop recommendations for achieving a balance
between natural gas supply and demand in order to--
(1) provide residential consumers with natural gas
at reasonable and stable prices;
(2) accommodate long-term maintenance and growth of
domestic natural gas-dependent industrial,
manufacturing, and commercial enterprises;
(3) facilitate the attainment of national ambient
air quality standards under the Clean Air Act (43
U.S.C. 7401 et seq.);
(4) achieve continued progress in reducing the
emissions associated with electric power generation;
and
(5) support the development of the preliminary
phases of hydrogen-based energy technologies.
(c) Comprehensive Analysis.--The report shall include a
comprehensive analysis of, for the period beginning on January
1, 2004, and ending on December 31, 2015, natural gas supply
and demand in the United States, including--
(1) estimates of annual domestic demand for natural
gas, taking into consideration the effect of Federal
policies and actions that are likely to increase or
decrease the demand for natural gas;
(2) projections of annual natural gas supplies,
from domestic and foreign sources, under Federal
policies in existence on the date of enactment of this
Act;
(3) an identification of estimated natural gas
supplies that are not available under those Federal
policies;
(4) scenarios for decreasing natural gas demand and
increasing natural gas supplies that compare the
relative economic and environmental impacts of Federal
policies that--
(A) encourage or require the use of natural
gas to meet air quality, carbon dioxide
emission reduction, or energy security goals;
(B) encourage or require the use of energy
sources other than natural gas, including coal,
nuclear, and renewable sources;
(C) support technologies to develop
alternative sources of natural gas and
synthetic gas, including coal gasification
technologies;
(D) encourage or require the use of energy
conservation and demand side management
practices; and
(E) affect access to domestic natural gas
supplies; and
(5) recommendations for Federal actions to achieve
the purposes described in subsection (b), including
recommendations that--
(A) encourage or require the use of energy
sources other than natural gas, including coal,
nuclear, and renewable sources;
(B) encourage or require the use of energy
conservation or demand side management
practices;
(C) support technologies for the
development of alternative sources of natural
gas and synthetic gas, including coal
gasification technologies; and
(D) would improve access to domestic
natural gas supplies.
(d) Consultation.--In preparing the report under subsection
(a), the Secretary shall consult with--
(1) experts in natural gas supply and demand; and
(2) representatives of--
(A) State and local governments;
(B) tribal organizations; and
(C) consumer and other organizations.
(e) Hearings.--In preparing the report under subsection
(a), the Secretary may hold public hearings and provide other
opportunities for public comment, as the Secretary considers
appropriate.
SEC. 1819. HYDROGEN PARTICIPATION STUDY.
Not later than 1 year after the date of enactment of this
Act, the Secretary shall submit to Congress a report evaluating
methodologies to ensure the widest participation practicable in
setting goals and milestones under the hydrogen program of the
Department, including international participants.
SEC. 1820. OVERALL EMPLOYMENT IN A HYDROGEN ECONOMY.
(a) Study.--
(1) In general.--The Secretary shall carry out a
study of the likely effects of a transition to a
hydrogen economy on overall employment in the United
States.
(2) Contents.--In completing the study, the
Secretary shall take into consideration--
(A) the replacement effects of new goods
and services;
(B) international competition;
(C) workforce training requirements;
(D) multiple possible fuel cycles,
including usage of raw materials;
(E) rates of market penetration of
technologies; and
(F) regional variations based on geography.
(b) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall submit to Congress a
report describing the findings, conclusions, and
recommendations of the study under subsection (a).
SEC. 1821. STUDY OF BEST MANAGEMENT PRACTICES FOR ENERGY RESEARCH AND
DEVELOPMENT PROGRAMS.
(a) In General.--The Secretary shall enter into an
arrangement with the National Academy of Public Administration
under which the Academy shall conduct a study to assess
management practices for research, development, and
demonstration programs at the Department.
(b) Scope of the Study.--The study shall consider--
(1) management practices that act as barriers
between the Office of Science and offices conducting
mission-oriented research;
(2) recommendations for management practices that
would improve coordination and bridge the innovation
gap between the Office of Science and offices
conducting mission-oriented research;
(3) the applicability of the management practices
used by the Department of Defense Advanced Research
Projects Agency to research programs at the Department;
(4) the advisability of creating an agency within
the Department modeled after the Department of Defense
Advanced Research Projects Agency;
(5) recommendations for management practices that
could best encourage innovative research and efficiency
at the Department; and
(6) any other relevant considerations.
(c) Report.--Not later than 18 months after the date of
enactment of this Act, the Secretary shall submit to Congress a
report on the study conducted under this section.
SEC. 1822. EFFECT OF ELECTRICAL CONTAMINANTS ON RELIABILITY OF ENERGY
PRODUCTION SYSTEMS.
Not later than 180 days after the date of enactment of this
Act, the Secretary shall enter into a contract with the
National Academy of Sciences under which the National Academy
of Sciences shall determine the effect that electrical
contaminants (such as tin whiskers) may have on the reliability
of energy production systems, including nuclear energy.
SEC. 1823. ALTERNATIVE FUELS REPORTS.
(a) In General.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall submit to Congress
reports on the potential for each of biodiesel and hythane to
become major, sustainable, alternative fuels.
(b) Biodiesel Report.--The report relating to biodiesel
submitted under subsection (a) shall--
(1) provide a detailed assessment of--
(A) potential biodiesel markets and
manufacturing capacity; and
(B) environmental and energy security
benefits with respect to the use of biodiesel;
(2) identify any impediments, especially in
infrastructure needed for production, distribution, and
storage, to biodiesel becoming a substantial source of
fuel for conventional diesel and heating oil
applications;
(3) identify strategies to enhance the commercial
deployment of biodiesel; and
(4) include an examination and recommendations, as
appropriate, of the ways in which biodiesel may be
modified to be a cleaner-burning fuel.
(c) Hythane Report.--The report relating to hythane
submitted under subsection (a) shall--
(1) provide a detailed assessment of potential
hythane markets and the research and development
activities that are necessary to facilitate the
commercialization of hythane as a competitive,
environmentally friendly transportation fuel;
(2) address--
(A) the infrastructure necessary to
produce, blend, distribute, and store hythane
for widespread commercial purposes; and
(B) other potential market barriers to the
commercialization of hythane;
(3) examine the viability of producing hydrogen
using energy-efficient, environmentally friendly
methods so that the hydrogen can be blended with
natural gas to produce hythane; and
(4) include an assessment of the modifications that
would be required to convert compressed natural gas
vehicle engines to engines that use hythane as fuel.
(d) Grants for Report Completion.--The Secretary may use
such sums as are available to the Secretary to provide, to 1 or
more colleges or universities selected by the Secretary, grants
for use in carrying out research to assist the Secretary in
preparing the reports required to be submitted under subsection
(a).
SEC. 1824. FINAL ACTION ON REFUNDS FOR EXCESSIVE CHARGES.
FERC shall--
(1) seek to conclude its investigation into the
unjust or unreasonable charges incurred by California
during the 2000-2001 electricity crisis as soon as
possible;
(2) seek to ensure that refunds the Commission
determines are owed to the State of California are paid
to the State of California; and
(3) submit to Congress a report by December 31,
2005, describing the actions taken by the Commission to
date under this section and timetables for further
actions.
SEC. 1825. FUEL CELL AND HYDROGEN TECHNOLOGY STUDY.
(a) In General.--As soon as practicable after the date of
enactment of this Act, the Secretary shall enter into a
contract with the National Academy of Sciences and the National
Research Council to carry out a study of fuel cell technologies
that provides a budget roadmap for the development of fuel cell
technologies and the transition from petroleum to hydrogen in a
significant percentage of the vehicles sold by 2020.
(b) Requirements.--In carrying out the study, the National
Academy of Sciences and the National Research Council shall--
(1) establish as a goal the maximum percentage
practicable of vehicles that the National Academy of
Sciences and the National Research Council determines
can be fueled by hydrogen by 2020;
(2) determine the amount of Federal and private
funding required to meet the goal established under
paragraph (1);
(3) determine what actions are required to meet the
goal established under paragraph (1);
(4) examine the need for expanded and enhanced
Federal research and development programs, changes in
regulations, grant programs, partnerships between the
Federal Government and industry, private sector
investments, infrastructure investments by the Federal
Government and industry, educational and public
information initiatives, and Federal and State tax
incentives to meet the goal established under paragraph
(1);
(5) consider whether other technologies would be
less expensive or could be more quickly implemented
than fuel cell technologies to achieve significant
reductions in carbon dioxide emissions;
(6) take into account any reports relating to fuel
cell technologies and hydrogen-fueled vehicles,
including--
(A) the report prepared by the National
Academy of Engineering and the National
Research Council in 2004 entitled ``Hydrogen
Economy: Opportunities, Costs, Barriers, and
R&D Needs''; and
(B) the report prepared by the U.S. Fuel
Cell Council in 2003 entitled ``Fuel Cells and
Hydrogen: The Path Forward'';
(7) consider the challenges, difficulties, and
potential barriers to meeting the goal established
under paragraph (1); and
(8) with respect to the budget roadmap--
(A) specify the amount of funding required
on an annual basis from the Federal Government
and industry to carry out the budget roadmap;
and
(B) specify the advantages and
disadvantages to moving toward the transition
to hydrogen in vehicles in accordance with the
timeline established by the budget roadmap.
SEC. 1826. PASSIVE SOLAR TECHNOLOGIES.
(a) Definition of Passive Solar Technology.--In this
section, the term ``passive solar technology'' means a passive
solar technology, including daylighting, that--
(1) is used exclusively to avoid electricity use;
and
(2) can be metered to determine energy savings.
(b) Study.--The Secretary shall conduct a study to
determine--
(1) the range of levelized costs of avoided
electricity for passive solar technologies;
(2) the quantity of electricity displaced using
passive solar technologies in the United States as of
the date of enactment of this Act; and
(3) the projected energy savings from passive solar
technologies in 5, 10, 15, 20, and 25 years after the
date of enactment of this Act if--
(A) incentives comparable to the incentives
provided for electricity generation
technologies were provided for passive solar
technologies; and
(B) no new incentives for passive solar
technologies were provided.
(c) Report.--Not later than 120 days after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that describes the results of the study under subsection
(b).
SEC. 1827. STUDY OF LINK BETWEEN ENERGY SECURITY AND INCREASES IN
VEHICLE MILES TRAVELED.
(a) In General.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the Academy shall conduct a study to assess the implications on
energy use and efficiency of land development patterns in the
United States.
(b) Scope.--The study shall consider--
(1) the correlation, if any, between land
development patterns and increases in vehicle miles
traveled;
(2) whether petroleum use in the transportation
sector can be reduced through changes in the design of
development patterns;
(3) the potential benefits of--
(A) information and education programs for
State and local officials (including planning
officials) on the potential for energy savings
through planning, design, development, and
infrastructure decisions;
(B) incorporation of location efficiency
models in transportation infrastructure
planning and investments; and
(C) transportation policies and strategies
to help transportation planners manage the
demand for the number and length of vehicle
trips, including trips that increase the
viability of other means of travel; and
(4) such other considerations relating to the study
topic as the National Academy of Sciences finds
appropriate.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences shall
submit to the Secretary and Congress a report on the study
conducted under this section.
SEC. 1828. SCIENCE STUDY ON CUMULATIVE IMPACTS OF MULTIPLE OFFSHORE
LIQUEFIED NATURAL GAS FACILITIES.
(a) In General.--The Secretary (in consultation with the
National Oceanic Atmospheric Administration, the Commandant of
the Coast Guard, affected recreational and commercial fishing
industries, and affected energy and transportation
stakeholders) shall carry out a study and compile existing
science (including studies and data) to determine the risks or
benefits presented by cumulative impacts of multiple offshore
liquefied natural gas facilities reasonably assumed to be
constructed in an area of the Gulf of Mexico using the open-
rack vaporization system.
(b) Accuracy.--In carrying out subsection (a), the
Secretary shall verify the accuracy of available science and
develop a science-based evaluation of significant short-term
and long-term cumulative impacts, both adverse and beneficial,
of multiple offshore liquefied natural gas facilities
reasonably assumed to be constructed in an area of the Gulf of
Mexico using or proposing the open-rack vaporization system on
the fisheries and marine populations in the vicinity of the
facility.
SEC. 1829. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.
(a) In General.--The Architect of the Capitol, as part of
the process of updating the Master Plan Study for the Capitol
complex, shall--
(1) carry out a study to evaluate the energy
infrastructure of the Capitol complex to determine how
to augment the infrastructure to become more energy
efficient--
(A) by using unconventional and renewable
energy resources;
(B) by--
(i) incorporating new technologies
to implement effective green building
solutions;
(ii) adopting computer-based
building management systems; and
(iii) recommending strategies based
on end-user behavioral changes to
implement low-cost environmental gains;
and
(C) in a manner that would enable the
Capitol complex to have reliable utility
service in the event of power fluctuations,
shortages, or outages;
(2) carry out a study to explore the feasibility of
installing energy and water conservation measures on
the rooftop of the Dirksen Senate Office Building,
including the area directly above the food service
facilities in the center of the building, including the
installation of--
(A) a vegetative covering area, using
native species to the maximum extent
practicable, to--
(i) insulate and increase the
energy efficiency of the building;
(ii) reduce precipitation runoff
and conserve water for landscaping or
other uses;
(iii) increase, and provide more
efficient use of, available outdoor
space through management of the rooftop
of the center of the building as a park
or garden area for occupants of the
building; and
(iv) improve the aesthetics of the
building; and
(B) onsite renewable energy and other
state-of-the-art technologies to--
(i) improve the energy efficiency
and energy security of the building of
the Capitol complex by providing
additional or backup sources of power
in the event of a power shortage or
other emergency;
(ii) reduce the use of resources by
the building; or
(iii) enhance worker productivity;
and
(C) not later than 180 days after the date
of enactment of this Act, submit to Congress a
report describing the findings and
recommendations of the study under subparagraph
(B).
(b) Authorization of Appropriations.--There is authorized
to be appropriated to the Architect of the Capitol to carry out
this section $2,000,000 for each of fiscal years 2006 through
2010.
SEC. 1830. STUDY OF AVAILABILITY OF SKILLED WORKERS.
(a) In General.--The Secretary shall enter into an
arrangement with the National Academy of Sciences under which
the National Academy of Sciences shall conduct a study of the
short-term and long-term availability of skilled workers to
meet the energy and mineral security requirements of the United
States.
(b) Inclusions.--The study shall include an analysis of--
(1) the need for and availability of workers for
the oil, gas, and mineral industries;
(2) the availability of skilled labor at both entry
level and more senior levels; and
(3) recommendations for future actions needed to
meet future labor requirements.
(c) Report.--Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Congress a
report that describes the results of the study.
SEC. 1831. REVIEW OF ENERGY POLICY ACT OF 1992 PROGRAMS.
(a) In General.--Not later than 180 days 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--
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the
market; and
(3) the cost of alternative fueled vehicles.
(b) Topics.--As part of the study under subsection (a), 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 quantity, by type, of alternative fuel
actually used in alternative fueled vehicles acquired
by fleets or covered persons;
(3) the quantity of petroleum displaced by the use
of alternative fuels in alternative fueled vehicles
acquired by fleets or covered persons;
(4) the direct and indirect costs of compliance
with requirements under titles III, IV, and V of the
Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.),
including--
(A) vehicle acquisition requirements
imposed on fleets or covered persons;
(B) administrative and recordkeeping
expenses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee
expenses; and
(E) any other factors or expenses the
Secretary determines to be necessary to compile
reliable estimates of the overall costs and
benefits of complying with programs under those
titles for fleets, covered persons, and the
national economy;
(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; and
(6) the projected impact of amendments to the
Energy Policy Act of 1992 made by this title.
(c) Report.--Upon completion of the study under this
section, the Secretary shall submit to Congress a report that
describes the results of the study 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.).
SEC. 1832. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.
(a) Study.--The Secretary, in coordination and consultation
with the States, shall conduct a study on--
(1) the procedures currently used by electric
utilities to perform economic dispatch;
(2) identifying possible revisions to those
procedures to improve the ability of nonutility
generation resources to offer their output for sale for
the purpose of inclusion in economic dispatch; and
(3) the potential benefits to residential,
commercial, and industrial electricity consumers
nationally and in each state if economic dispatch
procedures were revised to improve the ability of
nonutility generation resources to offer their output
for inclusion in economic dispatch.
(b) Definition.--The term ``economic dispatch'' when used
in this section means the operation of generation facilities to
produce energy at the lowest cost to reliably serve consumers,
recognizing any operational limits of generation and
transmission facilities.
(c) Report to Congress and the States.--Not later than 90
days after the date of enactment of this Act, and on a yearly
basis following, the Secretary shall submit a report to
Congress and the States on the results of the study conducted
under subsection (a), including recommendations to Congress and
the States for any suggested legislative or regulatory changes.
SEC. 1833. RENEWABLE ENERGY ON FEDERAL LAND.
(a) National Academy of Sciences Study.--Not later than 90
days after the date of enactment of this Act, the Secretary of
the Interior shall enter into a contract with the National
Academy of Sciences under which the National Academy of
Sciences shall--
(1) study the potential of developing wind, solar,
and ocean energy resources (including tidal, wave, and
thermal energy) on Federal land available for those
uses under current law and the outer Continental Shelf;
(2) assess any Federal law (including regulations)
relating to the development of those resources that is
in existence on the date of enactment of this Act; and
(3) recommend statutory and regulatory mechanisms
for developing those resources.
(b) Submission to Congress.--Not later than 2 years after
the date of enactment of this Act, the Secretary of the
Interior shall submit to Congress the results of the study
under subsection (a).
SEC. 1834. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL
FACILITIES.
(a) In General.--The Secretary of the Interior, the
Secretary, and the Secretary of the Army shall jointly conduct
a study of the potential for increasing electric power
production capability at federally owned or operated water
regulation, storage, and conveyance facilities.
(b) Content.--The study under this section shall include
identification and description in detail of each facility that
is capable, with or without modification, of producing
additional hydroelectric power, including estimation of the
existing potential for the facility to generate hydroelectric
power.
(c) Report.--The Secretaries shall submit to the Committees
on Energy and Commerce, Resources, and Transportation and
Infrastructure of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report on the findings, conclusions, and recommendations of the
study under this section by not later than 18 months after the
date of the enactment of this Act. The report shall include
each of the following:
(1) The identifications, descriptions, and
estimations referred to in subsection (b).
(2) A description of activities currently conducted
or considered, or that could be considered, to produce
additional hydroelectric power from each identified
facility.
(3) A summary of prior actions taken by the
Secretaries to produce additional hydroelectric power
from each identified facility.
(4) The costs to install, upgrade, or modify
equipment or take other actions to produce additional
hydroelectric power from each identified facility and
the level of Federal power customer involvement in the
determination of such costs.
(5) The benefits that would be achieved by such
installation, upgrade, modification, or other action,
including quantified estimates of any additional energy
or capacity from each facility identified under
subsection (b).
(6) A description of actions that are planned,
underway, or might reasonably be considered to increase
hydroelectric power production by replacing turbine
runners, by performing generator upgrades or rewinds,
or construction of pumped storage facilities.
(7) The impact of increased hydroelectric power
production on irrigation, water supply, fish, wildlife,
Indian tribes, river health, water quality, navigation,
recreation, fishing, and flood control.
(8) Any additional recommendations to increase
hydroelectric power production from, and reduce costs
and improve efficiency at, federally owned or operated
water regulation, storage, and conveyance facilities.
SEC. 1835. 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 of 1977 (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 Congress not later than 180 days
after the date of enactment of this Act.
SEC. 1836. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE
POWDER RIVER BASIN.
(a) Review.--The Secretary of the Interior shall review
Federal and State laws in existence on the date of enactment of
this Act in order to resolve any conflict relating to the
Powder River Basin in Wyoming and Montana between--
(1) the development of Federal coal; and
(2) the development of Federal and non-Federal
coalbed methane.
(b) Report.--Not later than 180 days after the date of
enactment of this Act, the Secretary of the Interior shall
submit to Congress a report that--
(1) describes methods of resolving a conflict
described in subsection (a); and
(2) identifies a method preferred by the Secretary
of the Interior, including proposed legislative
language, if any, required to implement the method.
SEC. 1837. NATIONAL SECURITY REVIEW OF INTERNATIONAL ENERGY
REQUIREMENTS.
(a) Study.--The Secretary, in consultation with the
Secretary of Defense and Secretary of Homeland Security, shall
conduct a study of the growing energy requirements of the
People's Republic of China and the implications of such growth
on the political, strategic, economic, or national security
interests of the United States, including--
(1) an assessment of the type, nationality, and
location of energy assets that have been sought for
investment by entities located in the People's Republic
of China;
(2) an assessment of the extent to which investment
in energy assets by entities located in the People's
Republic of China has been on market-based terms and
free from subsidies from the People's Republic of
China;
(3) an assessment of the effect of investment in
energy assets by entities located in the People's
Republic of China on the control by the United States
of dual-use and export-controlled technologies,
including the effect on current and future access to
foreign and domestic sources of rare earth elements
used to produce such technologies;
(4) an assessment of the relationship between the
Government of the People's Republic of China and
energy-related businesses located in the People's
Republic of China;
(5) an assessment of the impact on the world energy
market of the common practice of entities located in
the People's Republic of China of removing the energy
assets owned or controlled by such entities from the
competitive market, with emphasis on the effect if such
practice expands along with the growth in energy
consumption of the People's Republic of China;
(6) an examination of the United States energy
policy and foreign policy as it relates to ensuring a
competitive global energy market;
(7) an examination of the relationship between the
United States and the People's Republic of China as it
relates to pursuing energy interests in a manner that
avoids conflicts; and
(8) a comparison of the appropriate laws and
regulations of other nations to determine whether a
United States company would be permitted to purchase,
acquire, merge, or otherwise establish a joint
relationship with an entity whose primary place of
business is in that other nation, including the laws
and regulations of the People's Republic of China.
(b) Report and Recommendations.--Not later than 120 days
after the date of the enactment of this Act, the Secretary, in
consultation with the Secretary of Defense, shall report to the
President and the Congress on the findings of the study
described in subsection (a) and any recommendations the
Secretaries consider appropriate.
(c) Regulatory Effect.--Notwithstanding any other provision
of law, any instrumentality of the United States vested with
authority to review a transaction that includes an investment
in a United States domestic corporation may not conclude a
national security review related to an investment in the energy
assets of a United States domestic corporation by an entity
owned or controlled by the government of the People's Republic
of China for 21 days after the report to the President and the
Congress, and until the President certifies that he has
received the report described in subsection (b).
SEC. 1838. USED OIL RE-REFINING STUDY.
The Secretary, in consultation with the Administrator of
the Environmental Protection Agency, shall undertake a study of
the energy and environmental benefits of the re-refining of
used lubricating oil and report to Congress within 90 days
after enactment of this Act including recommendations of
specific steps that can be taken to improve collections of used
lubricating oil and increase re-refining and other beneficial
re-use of such oil.
SEC. 1839. TRANSMISSION SYSTEM MONITORING.
Within 6 months after the date of enactment of this Act,
the Secretary and the Federal Energy Regulatory Commission
shall study and report to Congress on the steps which must be
taken to establish a system to make available to all
transmission system owners and Regional Transmission
Organizations (as defined in the Federal Power Act) within the
Eastern and Western Interconnections real-time information on
the functional status of all transmission lines within such
Interconnections. In such study, the Commission shall assess
technical means for implementing such transmission information
system and identify the steps the Commission or Congress must
take to require the implementation of such system.
SEC. 1840. REPORT IDENTIFYING AND DESCRIBING THE STATUS OF POTENTIAL
HYDROPOWER FACILITIES.
(a) Report Requirement.--Not later than 90 days after the
date of enactment of this Act, the Secretary of the Interior,
acting through the Bureau of Reclamation, shall submit to the
Committee on Resources of the House of Representatives and the
Committee on Energy and Natural Resources of the Senate a
report identifying and describing the status of potential
hydropower facilities included in water surface storage studies
undertaken by the Secretary for projects that have not been
completed or authorized for construction.
(b) Report Contents.--The report shall include the
following:
(1) Identification of all surface storage studies
authorized by Congress since the enactment of the
Reclamation Project Act of 1939 (43 U.S.C. 485 et
seq.).
(2) The purposes of each project included within
each study identified under paragraph (1).
(3) The status of each study identified under
paragraph (1), including for each study--
(A) whether the study is completed or, if
not completed, still authorized;
(B) the level of analyses conducted at the
feasibility and reconnaissance levels of
review;
(C) identifiable environmental impacts of
each project included in the study, including
to fish and wildlife, water quality, and
recreation;
(D) projected water yield from each such
project;
(E) beneficiaries of each such project;
(F) the amount authorized and expended;
(G) projected funding needs and timelines
for completing the study (if applicable);
(H) anticipated costs of each such project;
and
(I) other factors that might interfere with
construction of any such project.
(4) An identification of potential hydroelectric
facilities that might be developed pursuant to each
study identified under paragraph (1).
(5) Applicable costs and benefits associated with
potential hydroelectric production pursuant to each
study.
And the Senate agree to the same.
From the Committee on Energy and Commerce, for
consideration of the House bill and the Senate
amendment, and modifications committed to
conference:
Joe Barton,
Ralph M. Hall,
Mike Bilirakis,
Fred Upton,
Cliff Stearns,
Paul Gillmor,
John Shimkus,
John Shadegg,
Chip Pickering,
Roy Blunt,
Charles F. Bass,
John D. Dingell,
Rick Boucher,
Bart Stupak,
Albert R. Wynn,
From the Committee on Agriculture, for
consideration of secs. 332, 344, 346, 1701,
1806, 2008, 2019, 2024, 2029, and 2030 of the
House bill, and secs. 251-253, 264, 303, 319,
342, 343, 345, and 347 of the Senate amendment,
and modifications committed to conference:
Bob Goodlatte,
Frank D. Lucas,
Collin C. Peterson,
From the Committee on Armed Services, for
consideration of secs. 104, 231, 601-607, 609-
612, and 661 of the House bill, and secs. 104,
281, 601-607, 609, 610, 625, 741-743, 1005, and
1006 of the Senate amendment, and modifications
committed to conference:
Duncan Hunter,
Curt Weldon,
Ike Skelton,
From the Committee on Education and the
Workforce, for consideration of secs. 121, 632,
640, 2206, and 2209 of the House bill, and
secs. 625, 1103, 1104, and 1106 of the Senate
amendment, and modifications committed to
conference:
Charlie Norwood,
Sam Johnson,
From the Committee on Financial Services, for
consideration of secs. 141-149 of the House
bill, and secs. 161-164 and 505 of the Senate
amendment, and modifications committed to
conference:
Michael G. Oxley,
Bob Ney,
From the Committee on Government Reform, for
consideration of secs. 102, 104, 105, 203, 205,
502, 624, 632, 701, 704, 1002, 1227, and 2304
of the House bill, and secs. 102, 104, 105,
108, 203, 502, 625, 701-703, 723-725, 741-743,
939, and 1011 of the Senate amendment, and
modifications committed to conference:
Tom Davis,
Darrell Issa,
Diane E. Watson,
From the Committee on the Judiciary, for
consideration of secs. 320, 377, 612, 625, 632,
663, 665, 1221, 1265, 1270, 1283, 1442, 1502,
and 2208 of the House bill, and secs. 137, 211,
328, 384, 389, 625, 1221, 1264, 1269, 1270,
1275, 1280, and 1402 of the Senate amendment,
and modifications committed to conference:
F. James Sensenbrenner, Jr.,
Steve Chabot,
From the Committee on Resources, for
consideration of secs. 204, 231, 330, 344, 346,
355, 358, 377, 379, Title V, secs. 969-976,
1701, 1702, Title XVIII, secs. 1902, 2001-2019,
2022-2031, 2033, 2041, 2042, 2051-2055, Title
XXI, Title XXII, and Title XXIV of the House
bill, and secs. 241-245, 252, 253, 261-270,
281, 311-317, 319-323, 326, 327, 342-346, 348,
371, 387, 391, 411-414, 416, and 501-506 of the
Senate amendment, and modifications committed
to conference:
Richard Pombo,
Barbara Cubin,
Nick Rahall,
From the Committee on Rules, for consideration
of sec. 713 of the Senate amendment, and
modifications committed to conference:
David Dreier,
Lincoln Diaz-Balart,
Louise Slaughter,
From the Committee on Science, for
consideration of secs. 108, 126, 205, 209, 302,
401-404, 411, 416, 441, 601-607, 609-612, 631,
651, 652, 661, 711, 712, 721-724, 731, 741-744,
751, 754, 757, 759, 801-811, Title IX, secs.
1002, 1225-1227, 1451, 1452, 1701, 1820, and
Title XXIV of the House bill, and secs. 125,
126, 142, 212, 230-232, 251-253, 302, 318, 327,
346, 401-407, 415, 503, 601-607, 609, 610, 624,
631-635, 706, 721, 722, 725, 731, 734, 751,
752, 757, 801, Title IX, Title X, secs. 1102,
1103, 1105, 1106, 1224, Title XIV, secs. 1601,
1602, and 1611 of the Senate amendment, and
modifications committed to conference:
Sherwood Boehlert,
Judy Biggert,
Bart Gordon,
Provided that Mr. Costello is appointed in lieu
of Mr. Gordon for consideration of secs. 401-
404, 411, 416, and 441 of the House bill, and
secs. 401-407 and 415 of the Senate amendment,
and modifications committed to conference:
Jerry F. Costello,
From the Committee on Transportation and
Infrastructure, for consideration of secs. 101-
103, 105, 108, 109, 137, 205, 208, 231, 241,
242, 320, 328-330, 377, 379, 721-724, 741-744,
751, 755, 756, 758, 811, 1211, 1221, 1231,
1234, 1236, 1241, 1281-1283, 1285, 1295, 1442,
1446, 2008, 2010, 2026, 2029, 2030, 2207, and
2210 of the House bill, and secs. 101-103, 105,
107, 108, 281, 325, 344, 345, 383, 731-733,
752, 1211, 1221, 1231, 1233, 1235, 1261, 1263,
1266, and 1291 of the Senate amendment, and
modifications committed to conference:
Don Young,
Tom Petri,
From the Committee on Ways and Means, for
consideration of Title XII of the House bill,
and secs. 135, 405, Title XV, and sec. 1611 of
the Senate amendment, and modifications
committed to conference:
William Thomas,
Dave Camp,
Managers on the Part of the House.
Pete Domenici,
Larry E. Craig,
Craig Thomas,
Lamar Alexander,
Lisa Murkowski,
Jeff Bingaman,
Daniel K. Akaka,
Byron L. Dorgan,
Richard M. Burr,
Tim Johnson,
Chuck Grassley,
Orrin Hatch,
Max Baucus,
Managers on the Part of the Senate.
JOINT EXPLANATORY STATEMENT OF THE COMMITTEE OF CONFERENCE
The Managers on the part of the House and Senate at the
conference on the disagreeing votes of the two Houses on the
amendment of the Senate to the bill H.R. 6, to ensure jobs for
our future with secure, affordable, and reliable energy, submit
the following joint statement to the House and the Senate in
explanation of the effect of the action agreed upon by the
Managers and recommended in the accompanying conference report:
The Senate amendment to the text of the bill struck all
of the House bill after the enacting clause, and inserted a
substitute text.
The House recedes from its disagreement to the amendment
of the Senate with an amendment that is a substitute for the
House bill and the Senate amendment.
The managers on the Part of the House and Senate met on
July 14, July 19, July 21, July 24, and July 25, 2005.
From the Committee on Energy and Commerce, for
consideration of the House bill and the Senate
amendment, and modifications committed to
conference:
Joe Barton,
Ralph M. Hall,
Mike Bilirakis,
Fred Upton,
Cliff Stearns,
Paul Gillmor,
John Shimkus,
John Shadegg,
Chip Pickering,
Roy Blunt,
Charles F. Bass,
John D. Dingell,
Rick Boucher,
Bart Stupak,
Albert R. Wynn,
From the Committee on Agriculture, for
consideration of secs. 332, 344, 346, 1701,
1806, 2008, 2019, 2024, 2029, and 2030 of the
House bill, and secs. 251-253, 264, 303, 319,
342, 343, 345, and 347 of the Senate amendment,
and modifications committed to conference:
Bob Goodlatte,
Frank D. Lucas,
Collin C. Peterson,
From the Committee on Armed Services, for
consideration of secs. 104, 231, 601-607, 609-
612, and 661 of the House bill, and secs. 104,
281, 601-607, 609, 625, 741-743, 1005, and 1006
of the Senate amendment, and modifications
committed to conference:
Duncan Hunter,
Curt Weldon,
Ike Skelton,
From the Committee on Education and the
Workforce, for consideration of secs. 121, 632,
640, 2206, and 2209 of the House bill, and
secs. 625, 1103, 1104, and 1106 of the Senate
amendment, and modifications committed to
conference:
Charlie Norwood,
Sam Johnson,
From the Committee on Financial Services, for
consideration of secs. 141-149, of the House
bill, and secs. 161-164, and 505 of the Senate
amendment, and modifications committed to
conference:
Michael G. Oxley,
Bob Ney,
From the Committee on Government Reform, for
consideration of secs. 102, 104, 105, 203, 205,
502, 624, 632, 701, 704, 1002, 1227, and 2304
of the House bill, and secs. 102, 104, 105,
108, 203, 502, 625, 701-703, 723-725, 741-743,
939, and 1011 of the Senate amendment, and
modifications committed to conference:
Tom Davis,
Darrell Issa,
Diane E. Watson,
From the Committee on Judiciary, for
consideration of secs. 320, 377, 612, 625, 632,
663, 665, 1221, 1265, 1270, 1283, 1442, 1502,
and 2208 of the House bill, and secs. 137, 211,
328, 384, 389, 625, 1221, 1264, 1269, 1270,
1275, 1280, and 1402 of the Senate amendment,
and modifications committed to conference:
F. James Sensenbrenner, Jr.,
Steve Chabot,
From the Committee on Resources, for
consideration of secs. 204, 231, 330, 344, 346,
355, 358, 377, 379, Title V, secs. 969-976,
1701, 1702, Title XVII, secs. 1902, 2001-2019,
2022-2031, 2033, 2041, 2042, 2051-2055, Title
XXI, Title XXII, and Title XXIV of the House
bill, and secs. 241-245, 252, 253, 261-270,
281, 311-317, 319-323, 326, 327, 342-346, 348,
371, 387, 391, 411-414, 416, and 501-506 of the
Senate amendment, and modifications committed
to conference:
Richard Pombo,
Barbara Cubin,
Nick Rahall,
From the Committee on Rules, for consideration
of secs. 713 of the Senate amendment, and
modifications committed to conference:
David Dreier,
Lincoln Diaz-Balart,
Louise Slaughter,
From the Committee on Science, for
consideration of secs. 108, 126, 205, 209, 302,
401-404, 411, 416, 441, 601-607, 609-612, 631,
651, 652, 661, 711, 712, 721-724, 731, 741-744,
751, 754, 757, 759, 801-811, Title IX, secs.
1002, 1225-1777, 1451, 1452, 1701, 1820, and
Title XXIV of the House bill, and secs. 125,
126, 142, 212, 230-232, 251-253, 302, 318, 327,
346, 401-407, 415, 503, 601-607, 609, 610, 624,
631-635, 706, 721, 722, 725, 731, 734, 751,
752, 757, 801, Title IX, Title X, secs. 1102,
1103, 1105, 1106, 1224, Title XIV, secs. 1601,
1602, and 1611 of the Senate amendment, and
modifications committed to conference:
Sherwood Boehlert,
Judy Biggert,
Bart Gordon,
Provided that Mr. Costello is appointed in lieu
of Mr. Gordon for consideration of secs. 401-
404, 411, 416, and 441 of the House bill, and
secs. 401-407 and 415 of the Senate amendment,
and modifications committed to conference:
Jerry F. Costello,
From the Committee on Transportation and
Infrastructure, for consideration of secs. 101-
103, 105, 108, 109, 137, 205, 208, 231, 241,
242, 320, 328-330, 377, 379, 721-724, 741-744,
751, 755, 756, 758, 811, 1211, 1221, 1231,
1234, 1236, 1241, 1281-1283, 1285, 1295, 1442,
1446, 2008, 2010, 2026, 2029, 2030, 2207, and
2210 of the House bill, and secs. 101-103, 105,
107, 108, 281, 325, 344, 345, 383, 731-733,
752, 1211, 1221, 1231, 1233, 1235, 1261, 1263,
1266, and 1291 of the Senate amendment, and
modifications committed to conference:
Don Young,
Tom Petri,
From the Committee on Ways and Means, for
consideration of Title XIII of the House bill,
and secs. 135, 405, Title XV, and sec. 1611 of
the Senate amendment, and modifications
committed to conference:
William Thomas,
Dave Camp,
Managers on the Part of the House.
Pete Domenici,
Larry E. Craig,
Craig Thomas,
Lamar Alexander,
Lisa Murkowski,
Jeff Bingaman,
Daniel K. Akaka,
Byron L. Dorgan,
Richard M. Burr,
Tim Johnson,
Chuck Grassley,
Orrin Hatch,
Max Baucus,
Managers on the Part of the Senate.