SECTION 1. NEXT GENERATION LIGHTING INITIATIVE.

    (a) Definitions.--In this section:
            (1) Consortium.--The term ``consortium'' means the 
        consortium selected by the Secretary under subsection (d)(1).
            (2) Initiative.--The term ``Initiative'' means the Next 
        Generation Lighting Initiative carried out under subsection 
        (b).
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) General Authority.--The Secretary shall carry out a program, to 
be known as the ``Next Generation Lighting Initiative'', 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--
            (1) to develop, by 2012, advanced solid-state lighting 
        technologies based on white light emitting diodes that, 
        compared to incandescent and fluorescent lighting technologies, 
        are--
                    (A) longer lasting;
                    (B) more energy-efficient; and
                    (C) cost-competitive;
            (2) to develop an inorganic white light emitting diode that 
        has an efficiency of 160 lumens per watt and a 10-year 
        lifetime; and
            (3) to develop an organic white light emitting diode with 
        an efficiency of 100 lumens per watt with a 5-year lifetime 
        that--
                    (A) illuminates over a full color spectrum;
                    (B) covers large areas over flexible surfaces; and
                    (C) does not contain harmful pollutants (such as 
                mercury) that are typical of fluorescent lamps.
    (d) Fundamental Research.--
            (1) Consortium.--The Secretary shall carry out the 
        fundamental research activities of the Initiative through a 
        private consortium (which may include private firms, trade 
        associations and institutions of higher education), which the 
        Secretary shall select through a competitive process.
            (2) Submission of information.--Each proposed consortium 
        shall submit to the Secretary such information as the Secretary 
        may require, including a program plan agreed to by all 
        participants of the consortium.
            (3) Joint venture.--The consortium shall be structured as a 
        joint venture among the participants of the consortium.
            (4) Governing council.--The Secretary shall serve on the 
        governing council of the consortium.
            (5) Eligibility.--To be eligible for a grant under 
        paragraph (6), an applicant shall be broadly representative of 
        United States solid-state lighting research, development, and 
        manufacturing expertise.
            (6) Grants.--
                    (A) In general.--The Secretary shall award grants 
                for fundamental research to the consortium, which the 
                consortium may disburse to researchers, including 
                researchers that are not participants in the 
                consortium.
                    (B) Submission.--To receive a grant, the consortium 
                shall submit to the Secretary a description of the 
                proposed research and a list of the persons that will 
                receive funding.
                    (C) Cost-sharing.--Grants shall be matched by the 
                consortium in accordance with subsection (h).
            (7) National laboratories.--National Laboratories may 
        participate in the research under this section and receive 
        funds from the consortium.
            (8) Intellectual property.--Participants in the consortium 
        and the Federal Government shall have royalty-free nonexclusive 
        rights to use intellectual property derived from research 
        funded under this subsection.
    (e) Development, Demonstration, and Commercial Application.--
            (1) In general.--The Secretary shall carry out the 
        development, demonstration, and commercial application 
        activities of the Initiative through awards to private firms, 
        trade associations, and institutions of higher education.
            (2) Preference.--In selecting awardees, the Secretary shall 
        give preference to members of the consortium.
    (f) Plans and Assessments.--
            (1) In general.--The consortium shall formulate an annual 
        operating plan which shall include research priorities, 
        technical milestones, and plans for technology transfer, and 
        which shall be subject to approval by the Secretary.
            (2) Review.--
                    (A) In general.--The Secretary shall enter into an 
                arrangement with the National Academy of Sciences to 
                conduct periodic reviews of the Initiative.
                    (B) Duties.--The Academy shall review the research 
                priorities, technical milestones, and plans for 
                technology transfer established under paragraph (1) and 
                evaluate the progress toward achieving them.
                    (C) Consideration of results.--The Secretary shall 
                consider the results of the reviews in evaluating the 
                plans submitted under paragraph (1).
    (g) Audit.--
            (1) In general.--The Secretary shall retain an independent, 
        commercial auditor to perform an audit of the consortium to 
        determine the extent to which the funds authorized by this 
        section have been expended in a manner consistent with this 
        section.
            (2) Report.--
                    (A) To the secretary.--The auditor shall annually 
                submit to the Secretary a report describing the results 
                of the audit under paragraph (1).
                    (B) To congress.--The Secretary shall transmit to 
                Congress a copy of each report submitted under 
                subparagraph (A), including a plan to remedy any 
                deficiencies noted in the report.
    (h) Cost Sharing.--
            (1) Research and development.--
                    (A) In general.--For research and development 
                programs carried out under this section, the Secretary 
                shall require a commitment from non-Federal sources of 
                at least 20 percent of the cost of the project.
                    (B) Reduction or waiver.--The Secretary may reduce 
                or waive the non-Federal requirement under this 
                subsection if the Secretary determines that the 
                research and development is of a basic or fundamental 
                nature.
            (2) Demonstration and commercial application.--
                    (A) In general.--The Secretary shall require at 
                least 50 percent of the costs directly and specifically 
                related to any demonstration or commercial application 
                project under this section to be provided from non-
                Federal sources.
                    (B) Reduction.--The Secretary may reduce the non-
                Federal requirement under this subsection if the 
                Secretary determines that the reduction is necessary 
                and appropriate considering the technological risks 
                involved in the project and is necessary to meet the 
                objectives of this title.
            (3) Calculation of amount.--In calculating the amount of 
        the non-Federal commitment under paragraph (1) or (2), the 
        Secretary may include personnel, services, equipment, and other 
        resources.
    (i) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section--
            (1) $10,000,000 for fiscal year 2004; and
            (2) $50,000,000 for each of fiscal years 2005 through 2013.
    (j) Termination of Initiative.--The Secretary shall terminate the 
Initiative not later than September 30, 2013.
Next Generation Lighting Initiative Act - Directs the Secretary of Energy to implement: (1) the Next Generation Lighting Initiative to support research, development, demonstration, and commercial application activities related to advanced solid-state lighting technologies based on white light emitting diodes; (2) fundamental research activities of the Initiative through a private consortium (which may include private firms, trade associations and institutions of higher education), selected through a competitive process; and (3) development, demonstration, and commercial application activities of the Initiative through awards to private firms, trade associations, and institutions of higher education.
A bill to direct the Secretary of Energy to carry out a Next Generation Lighting Initiative.