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[Senate Report 109-78]
[From the U.S. Government Publishing Office]

                                                       Calendar No. 121
109th Congress                                                   Report
                                 SENATE
 1st Session                                                     109-78

======================================================================

 
                       ENERGY POLICY ACT OF 2005

                                _______
                                

                  June 9, 2005.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                          [To accompany S. 10]

    The Committee on Energy and Natural Resources having 
considered the same, report favorably thereon an original bill 
(S. 10) to enhance the energy security of the United States, 
and for other purposes, and recommends that the bill do pass.

                                CONTENTS

                                                                   Page
Purpose of the Measure...........................................     1
Summary of Major Provisions......................................     2
Background and Need..............................................     6
Legislative History..............................................    10
Committee Recommendation and Tabulation of Votes.................    13
Section-by-Section Analysis......................................    13
Cost and Budgetary Considerations................................    57
Regulatory Impact Evaluation.....................................    57
Executive Communications.........................................    57
Additional Views.................................................    58
Changes in Existing Law..........................................    61

                         Purpose of the Measure

    The purpose of the measure is to provide a comprehensive 
national energy policy that balances domestic energy production 
with conservation and efficiency efforts to enhance the 
security of the United States and decrease dependence on 
foreign sources of fuel.

                      Summary of Major Provisions

    Title I--Energy Efficiency. Title I provides for programs 
to ensure that energy efficiency is a central focus of national 
energy policy. The title addresses Federal and state energy 
efficiency programs, provides funding for home weatherization, 
establishes numerous efficiency standards for a variety of 
consumer and commercial energy consuming products, requires 
reduction in energy use in Federal facilities, establishes and 
updates energy efficiency standards for public and assisted 
housing, and requires the President to develop methods to save 
1 million barrels of petroleum per day by 2015.
    Title II--Renewable Energy. Title II creates programs to 
expand the use of renewable sources of energy. The title 
requires the Secretary of Energy to develop a detailed 
inventory of the Nation's renewable energy resources. It also 
renews and expands the Renewable Energy Production Incentive 
for not-for-profit electric utilities and requires the Federal 
government to try to increase its use of renewable energy to 
7.5 percent of the total amount of energy consumed by 2013. A 
major provision of the title requires that 8 billion gallons of 
renewable fuel be used in motor vehicle fuel markets by 2012 
and requires the Federal Government to expand its use of 
ethanol and bio-diesel motor fuels.
    Subtitle B directs the Secretary of Energy, in consultation 
with the Secretary of the Interior, to assess and report to 
Congress on projects with the greatest potential for reducing 
dependence on fossil fuels used in the generation of 
electricity, and for promoting distributed energy, in the U.S.-
affiliated insular areas. The subtitle would also authorize the 
Secretary to provide technical and financial assistance, on a 
matching basis with local utilities, for feasibility studies 
and the implementation of those projects the Secretary 
determines are feasible, and appropriate for implementation.
    Subtitle C establishes two biomass grant programs to 
encourage the removal of slash, brush, pre-commercial thinning 
material and other non-merchantable forest biomass from Federal 
lands and Indian reservations for biomass energy production.
    Subtitle E addresses hydroelectric licensing and other 
hydropower provisions. The licensing section requires the 
resource agencies (Departments of the Interior, Commerce, and 
Agriculture) to issue regulations establishing procedures for 
on the record ``trial-type'' hearings on disputed issues of 
material fact with respect to conditions or prescriptions 
sought by Federal resource agencies to be imposed on 
hydroelectric licenses. Any party to the Federal Energy 
Regulatory Commission (FERC) licensing proceeding can initiate 
the trial-type hearing. Once initiated, all disputed issues of 
material fact must be considered in a single hearing, which is 
to last no more than 90 days.
    The Subtitle adds a new section to the Federal Power Act 
providing for the adoption of alternative conditions and 
prescriptions. These alternatives can be proposed by any party 
to the FERC proceeding and must be adopted if the Secretary 
determines that certain standards are met and concurs in the 
judgment of the license applicant that the alternative 
condition or prescription would cost significantly less or 
result in improved operation of the project works for 
electricity production. The Secretary of the applicable 
resource agency is directed to provide a written statement for 
the hearing record explaining the basis for the condition or 
prescription selected and reason for not accepting a proposed 
alternative. Such statement must demonstrate that the Secretary 
gave equal consideration to a number of listed factors. If a 
resource agency does not accept a license applicant's proposed 
alternative and FERC finds the Secretary's condition or 
prescription to be inconsistent with applicable law, FERC can 
refer the dispute to FERC's dispute resolution service for a 
non-binding advisory.
    Subtitle E also conforms the treatment of disagreements 
over fish and wildlife conditions for hydroelectric projects of 
less than 5 MW in Alaska to the standards under section 10(j) 
of the Federal Power Act. Finally, Subtitle E contains a 
provision reducing fees payable for the use of Federal lands 
with respect to the Flint Creek project in Montana.
    Title III--Oil and Gas:
    Subtitle A permanently authorizes the Strategic Petroleum 
Reserve and other energy programs.
    Subtitle B includes provisions relating to a program for 
taking in-kind royalties on Federal oil and gas production, 
establishes an archive system for certain geological and 
geophysical data, addresses oil and gas leasing in the National 
Petroleum Reserve-Alaska, establishes a science initiative for 
the North Slope of Alaska, establishes a program to reclaim 
orphaned, abandoned or idled wells, addresses alternate energy-
related uses of the Outer Continental Shelf (OCS), provides for 
a comprehensive inventory of OCS oil and gas resources, and 
provides incentives for production of oil and gas both on 
Federal lands and off-shore on the OCS.
    Subtitle C addresses administrative and permitting issues 
to improve access to Federal lands for exploration and 
production of oil and gas.
    Subtitle D provides coastal impact assistance to coastal 
states that help contribute to our nation's energy supply.
    Subtitle E increases regulatory certainty for natural gas 
infrastructure; promotes investment in needed storage; 
increases penalties for violations of the Natural Gas Act and 
Natural Gas Policy Act; addresses natural gas market 
transparency, and provides additional market reforms.
    Title IV--Coal. Title IV establishes programs to ensure 
that coal remains a major component of national energy policy. 
The title establishes a program to facilitate research, 
development and deployment of advanced coal gasification and 
combustion technologies for electric power generation. The 
title also amends the Mineral Leasing Act to allow for more 
efficient development of coal resources on Federal lands.
    Title V--Indian Energy. Title V provides for programs, 
funding assistance and structured consultation with the 
Department of the Interior (DOI) and Department of Energy (DOE) 
to ensure that the energy resources on Indian land continue to 
be a major component of the Nation's energy supply should 
tribes wish them to be. The title amends existing law to allow 
tribes to submit Tribal Energy Resource Agreements to the DOI 
and, subsequent to DOI's approval of those plans, enter into 
leases, contracts and agreements with private and public 
business partners in furtherance of those resource development 
plans. The title authorizes the Federal Government to provide 
loans, grants and loan guarantees to qualifying tribes for the 
implementation of their Tribal Energy Resource Agreements and 
authorizes $20 million annually for such endeavors through 
2016. The title also requires two studies, makes the Dine Power 
Authority, a Navajo Nation enterprise, eligible for Federal 
funding and renews the Navajo Electrification Project through 
2011.
    Title VI--Nuclear. Title VI provides for programs to ensure 
that nuclear energy continues as a major component of the 
Nation's energy supply. Price-Anderson liability protection is 
extended for both Nuclear Regulatory Commission (NRC) licensees 
and DOE contractors for twenty years. Coverage is increased and 
indexed for inflation, and non-profit contractors of the 
Department are made subject to payment of penalties assessed 
for nuclear safety violations. Title VI also provides for the 
export of high enriched uranium to Canada, Belgium, France, 
Germany or the Netherlands for the sole purpose of producing 
medical isotopes until a low enriched uranium alternative is 
commercially viable and available. Title VI also requires the 
DOE to propose a permanent disposal facility to Congress for 
Greater Than Class C waste, also known as sealed sources, 
within one year of enactment. This title also amplifies 
existing laws that contain prohibitions of nuclear exports to 
countries identified by the Secretary of State as engaging in 
State sponsored terrorism. Additionally, title VI establishes 
that an advanced next generation nuclear power plant reactor 
will be built at the Idaho National Laboratory to demonstrate 
both electricity and hydrogen production. This new reactor will 
feature improved safety, reduced waste, higher efficiency, and 
increased proliferation resistance and physical security. This 
research project is an advanced reactor hydrogen cogeneration 
project to move America toward advanced nuclear energy power 
plants and a hydrogen economy.
    Title VII--Vehicles and Fuels. Title VII addresses the use 
of alternative fuels by Federal and covered vehicle fleets by 
ensuring greater use of alternative fuels, creating an 
alternative mechanism for non-Federal fleets to comply with 
petroleum use reduction requirements and requiring the 
Secretary of Energy to provide a report to Congress on program 
compliance. The title also creates a number of programs to 
enhance energy efficiency and technology development in the 
transportation sector.
    Title VIII--Hydrogen. Title VIII reauthorizes and updates 
the Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990, which provides for basic hydrogen 
energy research and development programs. The title also 
authorizes new research and development programs for hydrogen 
vehicle technologies and for use of hydrogen as a 
transportation fuel. The title provides authorization for a 
variety of programs to demonstrate hydrogen and fuel cells for 
use in light- and heavy-duty vehicle fleets, stationary power 
and international projects. The title requires Federal agencies 
to consider how they can incorporate hydrogen and fuel cell 
technologies into their missions, creates an interagency task 
force, and requires a National Academy study of progress made 
toward achieving the goals of the hydrogen program.
    Title IX--Research and Development. Title IX provides the 
research and development base underpinning the full range of 
energy-related technologies. Subtitles of the title are devoted 
to Energy Efficiency, Distributed Energy and Electric Energy 
Systems, Renewable Energy, Nuclear Energy, Fossil Energy, 
Science, Energy and Environment, and Management. Authorizations 
are provided in each Subtitle for the programs described 
therein. Broad goals are established to guide the research and 
development activities of: diversifying energy supplies, 
increasing energy efficiency, decreasing dependence on foreign 
energy supplies, improving energy security, and decreasing 
environmental impact. The Secretary is annually directed to 
publish specific goals in major program areas consistent with 
these broad goals.
    Title X--Department of Energy Management. Title X provides 
cost-sharing requirements for DOE research, development, 
demonstration, and commercial application activities from non-
Federal sources. The title requires merit review of proposals, 
and external technical review of Department Programs. The title 
requires initiatives to improve technology transfer and small 
business interactions. The title increases the number of 
assistant secretaries from 6 to 8, and creates a new 
Undersecretary for Science and Energy.
    Title XI--Personnel and Training. Title XI requires the 
Secretary of Energy to monitor energy workforce trends and, 
where necessary, use grants, fellowships, traineeships or other 
training programs to ensure a sufficient number of workers in 
energy fields. The bill requires establishment of training 
guidelines for electric energy industry personnel, 
establishment of centers for building technologies and power 
plant operations training, and increased activity by the DOE to 
improve recruitment of under-represented groups into energy 
fields of education and employment.
    Title XII--Electricity. Title XII will reduce regulatory 
uncertainty, promote transmission infrastructure development 
and security, and increase consumer protections.
    Subtitle A requires mandatory rules for operation to ensure 
transmission grid reliability. Subtitle B provides limited 
Federal backstop siting authority for electric transmission 
lines in areas designated by the Secretary of Energy as 
national interest transmission corridors. It also authorizes 
FERC to issue siting permits if a State withholds approval 
inappropriately. It would also provide FERC with eminent domain 
authority for electric transmission infrastructure. Subtitle C 
authorizes FERC to exercise limited jurisdiction over 
unregulated transmitting utilities (such as municipals and 
cooperatives) to ensure open access to the transmission grid. 
It encourages voluntary RTO developments. It terminates FERC's 
Proposed Rulemaking on Standard Market Design. It protects 
transmission access for native load customers. Subtitle D 
directs FERC to issue rules on transmission pricing policies. 
It authorizes FERC to approve a participant funding cost 
allocation plan, without regard to whether the applicant is in 
an RTO, as long as it results in just and reasonable rates. 
Subtitle E amends the Public Utility Regulatory Policies Act of 
1978 (PURPA). It prospectively repeals the mandatory purchase 
and sale from qualifying facilities requirements on electric 
utilities if there is a competitive market. It amendsPURPA to 
ensure that qualifying facilities are legitimate, commercially useful 
facilities. It encourages states to promote net metering, smart 
metering and distributed generation. Subtitle F provides consumer 
protections through strengthened market transparency rules, increased 
penalties, and prohibitions on manipulative practices. It directs the 
Federal Trade Commission (FTC) to promulgate rules to increase consumer 
protections. It creates an Office of Consumer Advocacy at the DOE. It 
allows courts to prevent traders who manipulate markets from serving as 
officers or directors of electric utility companies. It allows FERC to 
consider validity of termination payment provisions in certain Western 
Interconnection contracts. Subtitle G repeals the Public Utility 
Holding Company Act of 1935 (PUHCA). It also amends section 203 of the 
Federal Power Act giving FERC limited jurisdiction over transactions 
valued over $10 million, including acquisitions of FERC jurisdictional 
generation facilities. In addition to making a finding consistent with 
the public interest, it requires FERC to make a finding that a merger 
will not result in cross-subsidization to the detriment of the utility. 
Subtitle H amends and adds definitions to the Federal Power Act. 
Subtitle I makes technical changes in the Federal Power Act.
    Title XIII--Studies. Title XIII provides for studies on a 
variety of energy issues.
    Title XIV--Incentives for Innovative Technologies. Title 
XIV provides general requirements that the Secretary of Energy 
must meet in granting loan guarantees. The title directs the 
Secretary to offer loan guarantees for any new or significantly 
improved energy technology for nearly all end-uses if the 
technology avoids, reduces, or sequesters air pollutants or 
greenhouse gases. The title also specifically authorizes loan 
guarantees for a variety of Integrated Gas Combined Cycle 
technologies.

                          Background and Need

    Nearly five decades ago energy demand in the United States 
began exceeding domestic supply. That trend has increased over 
the years as the Nation has grown in population and expanded 
its economy. Current DOE projections indicate that the 
disparity between energy supply and demand will continue to 
grow. The widening gap between supply and demand, accompanied 
by reliance on foreign sources to close that gap, has created 
profound concerns in the Congress over the Nation's energy 
security. The supply and demand gap places pressure on the 
market and leads to volatile prices, exacerbating economic 
problems. Coupled with those concerns is the recognition that 
meeting demand must be accomplished in an environmentally sound 
manner. A combination of energy production, conservation, 
efficiency, and development of new technologies is the bedrock 
of a sound energy policy aimed at closing the supply and demand 
imbalance. Such a policy is necessary to ensure the country's 
continued growth and prosperity and to protect our national 
security.

                               PRODUCTION

    Today, U.S. oil production is at a 50-year low and 
continues to decline, placing increasing importance on imports, 
often from unstable regimes. Oil imports accounted for roughly 
60 percent of U.S. consumption in 2002, and nearly a third of 
the current trade deficit. Currently, the United States 
consumes roughly 19 million barrels of oil per day (mmbd)--12 
million in the transportation sector alone. Demand in the 
transportation sector is projected to grow to more than 20 
million barrels per day by 2025. The growing demand for 
petroleum used in transportation is of particular concern to 
the United States for a number of reasons, including energy 
security issues related to increasing dependence on foreign 
oil, and environmental concerns over emissions of air 
pollutants and greenhouse gases resulting from increased oil 
usage.
    Projected growth in domestic production of natural gas and 
coal provides a limited counterbalance to the dismal oil 
outlook. Over the next 20 years, natural gas production is 
expected to grow by 1.5 percent per year, and coal by 1.5 
percent per year. Natural gas currently represents 24 percent 
of all energy consumed in the U.S. and supplies nearly one-
fifth of all electricity generation. Coal remains the primary, 
and most efficient, fuel for electricity generation, currently 
accounting for over half of all electric generation in the 
U.S., and will remain so through 2025. Even though production 
is expected to grow in the two sectors, demand for natural gas 
is projected to outpace supply, and neither fuel is able to 
offset the overall gap between energy supply and energy demand 
in the United States.
    Despite the growing dependence on imports, the Nation has a 
wealth of domestic resources that are currently untapped. The 
United States currently has an estimated 22.4 billion barrels 
of proven oil reserves--12th highest in the world--with over 65 
percent of proven oil reserves concentrated in the Gulf of 
Mexico and Alaska. A 1999 National Petroleum Council study 
found that the lower 48 States, including the Gulf of Mexico, 
hold a tremendous supply of natural gas (1,466 tcf). Obstacles 
to development of these resources include regulatory hurdles, 
price volatility, and lack of infrastructure. While the price 
spikes in 2000 led to a significant increase in gas well 
drilling activity in 2001, domestic gas producers have not 
responded to recent higher prices as robustly. U.S. production 
fell by 2.3 percent in 2002. World market prices for crude oil 
remain high, but domestic producers need additional incentives 
to encourage the development of available resources.
    Resource development on onshore Federal land administered 
by the Bureau of Land Management (BLM) provides 5 percent of 
the Nation's oil production; 11 percent of its natural gas 
production; 35 percent of its coal production; 20 percent of 
its wind power production; and 48 percent of its geothermal 
energy production. In addition to traditional sources of 
energy, Federal lands provide significant renewable resources, 
accounting for 17 percent of the Nation's hydropower, 20 
percent of its wind power, and 48 percent of its geothermal 
production. However, various regulatory restrictions and 
processes hinder full development of all of these resources.
    Production on Federal lands and in the OCS can be 
encouraged through regulatory streamlining and incentives such 
as royalty relief. Certain renewable energy sources have been 
provided royalty relief to increase their economic viability. 
Other energy sources such as geothermal and OCS oil and gas 
production, still face a significant financial burden that 
prevents increaseddevelopment. Hydropower projects on Federal 
lands can take years to license, hampering long-term investment and 
stability.
    In addition to their potential for providing new domestic 
energy production, Federal lands could also play an important 
role in developing a comprehensive interstate delivery system 
for the Nation's energy supplies. Streamlining the permitting 
and siting of energy infrastructure investments on Federal 
lands will add to the reliability of energy supplies and help 
to reduce the cost of domestic production.
    There are abundant energy resources available for 
production on Indian lands. Development of those resources must 
be encouraged.
    Currently, nuclear power provides over 20 percent of our 
electricity. Reauthorization of the liability and 
indemnification provisions of the Price-Anderson Act is 
critical for protection of consumers as well as stability in 
the industry. The importance of continued investments in 
nuclear energy cannot be overstated. Only nuclear and 
hydroelectric power can provide significant levels of power 
with zero air emissions. While renewables can and must play a 
role in a diverse energy mix, only nuclear power offers 
significant long-term potential to address global climate 
concerns.
    An important aspect of accessing available domestic energy 
supplies will be the assurance that supplies are able to reach 
the growing demand. A 1999 study published by the INGAA 
Foundation estimates that $47.7 billion in new investment in 
pipeline infrastructure is needed to deliver new gas supplies.
    Billions of dollars need to be invested in the national 
transmission grid to ensure reliability and to allow markets to 
function. Siting challenges, including a lack of coordination 
among States, impede the improvement of the electric system.
    Regulatory uncertainty in the electricity industry also 
hinders needed infrastructure investment. Lack of certainty as 
to the viability of market structures and the financial 
stability of market participants impedes access to and 
increases the cost of capital for the electricity sector. 
Uncertainty in the marketplace about the rules and regulations 
that will govern generation and transmission facilities 
contributes to financial instability and endangers reliability 
of service.
    Over the past fifteen years, energy policy has evolved 
toward more open access to the transmission grid and increased 
competition. The Energy Policy Act of 1992 facilitated the 
development of a competitive electric sector by allowing non-
utility power producers to compete in wholesale markets. 
Utilities were required to open their transmission lines to 
these new competitors. These changes in the law allowed 
development of the merchant generator and power marketer 
sectors. In 1996, FERC issued Orders 888 and 889, which 
required jurisdictional public utilities to file an open access 
transmission tariff with FERC and encouraged the formation of 
Independent System Operators. In December 1999, FERC issued 
Order 2000, encouraging transmission owners to join voluntarily 
Regional Transmission Organizations that would independently 
operate the transmission system. In 2002, FERC proposed the 
Standard Market Design (SMD) as a way to address alleged 
continued discriminatory transmission practices. The SMD was 
strongly opposed because of infringement on State commissions' 
jurisdiction.
    A balance between access to the transmission grid for the 
benefit of competition and access to the transmission grid to 
provide reliable, efficient service to retail consumers is the 
appropriate goal of energy policy. Clear regulatory rules and 
the minimization of barriers are required to achieve that goal.

                      CONSERVATION AND EFFICIENCY

    In addition to increasing domestic supplies of energy, 
reducing demand and using supplies wisely is an essential part 
of a balanced national energy policy. According to the Energy 
Information Administration, as energy prices increased between 
1970 and 1986, energy intensity (measured by energy use per 
dollar of GDP) declined at an average annual rate of 2.3 
percent. About half of that decrease comes from efficiency 
measures. Energy intensity is projected to continue its decline 
at an average annual rate of 1.5 percent through 2025 as 
continued efficiency gains and structural shifts in the economy 
offset increasing energy demand.
    One of the key roles the Federal Government plays in 
conservation is ensuring the efficient operation of Federal 
facilities. The annual energy bill for the Federal Government 
is about $9.6 billion. However, through the Federal Energy 
Management Program, the Federal Government spent $2.3 billion 
less in real dollars for energy for its buildings in FY 2000 
compared to FY 1985. The Energy Policy Act of 1992 set a 20 
percent energy reduction goal (per square foot) for Federal 
facilities by FY 2000 relative to FY 1985. Preliminary FEMP 
data indicated that this goal was exceeded by 2.7 percent 
additional savings relative to the FY 1985 baseline. The 
current goals of the FEMP program, established in 1999 by 
Executive Order 13123, are to reduce energy consumption in 
Federal facilities by 30 percent per square foot in 2005 and 35 
percent in 2010 relative to 1990 levels.
    On the consumer side, efficiency standards for homes and 
appliances have also added to the improved use of scarce energy 
resources. The National Appliance Energy Conservation Act 
(NAECA), enacted in 1987, provided the framework for 
establishing minimum energy efficiency standards for more than 
two dozen types of appliances and equipment. Congress expanded 
the products covered by NAECA in 1988 and 1992. DOE estimates 
that the 12 standards developed by the Department have saved 
consumers over $25 billion in cumulative electricity costs. A 
2001 study by the American Council for an Energy Efficient 
Economy (ACEEE) estimated that standards in place through the 
year 2000 reduced U.S. electricity use by 2.5 percent and 
reduced peak demand by approximately 21,000 megawatts. There 
are several appliances and equipment types not currently 
covered by Federal standards that offer the significant energy 
savings potential in the future. Additional incentives are 
needed to encourage new development in these areas.

                               INNOVATION

    The third aspect of a balanced national energy policy looks 
to the long-term future. New sources of energy and improved 
technologies for existing resources will lead to long-term 
energysecurity. Research and development opportunities range 
from new advanced nuclear technologies to improved conductivity of 
transmission lines to improved efficiency of light bulbs.
    President Bush announced a $1.2-billion Hydrogen Fuel 
Initiative to develop hydrogen-powered fuel cells during his 
State of the Union speech on January 28, 2003. This initiative 
will develop the technology needed for commercially viable 
hydrogen-powered fuel cells to power cars, trucks, homes, and 
businesses. Central to the development of hydrogen as a fuel 
source will be research into the technologies and 
infrastructure needed to produce, store, and distribute 
hydrogen fuel.
    Nuclear cogeneration of hydrogen is a new opportunity for 
nuclear power, along with deployment of the next generation of 
nuclear reactors. New nuclear reactors offer the ability to 
provide energy security, add to fuel and technology diversity, 
and meet clean air goals. The next generation of reactors is 
safer and more efficient, and is vital to the nation's energy 
supply. A new and aggressive program into innovative nuclear 
technologies can foster the development of a new generation of 
nuclear powerplants to meet future demand.
    Innovation for the future also includes improving on 
technologies for existing fuel resources. New advances in the 
oil and gas industry have led to less intrusive drilling, 
improved success in drilling wells, and stronger stewardship of 
the environment. Clean coal initiatives have resulted in 
drastic reductions in emissions without limiting the ability of 
coal to serve as the most reliable and efficient means of 
electric generation. Looking to the future, clean coal research 
will ensure that new powerplants meet high standards of 
economic viability and environmental protection.
    Continuing innovation also is crucial to improve the 
economic viability of producing energy from new supplies of 
woody biomass produced from treatments aimed at improving the 
health of our forests on Federal and Indian lands. Federal land 
managers and other experts have recommended removing some of 
the slash, brush, pre-commercial thinnings and other non-
merchantable wood and plant material from forests to improve 
forest health and reduce the threat of uncharacteristic 
wildfire. But land managers have indicated that in many regions 
of the country there currently are few economically viable 
enterprises using this type of biomass and that this increases 
the costs of forest restoration treatments. The two grant 
programs authorized in Title II, Subtitle C, are designed to 
encourage the production of energy from biomass produced from 
restoration treatments on Federal and Indian lands and, 
ultimately, to reduce the costs of those treatments.
    The Committee believes that some of the newest, most 
innovative technologies for energy production and use, those 
that are cleaner and more efficient compared to existing 
commercial technologies, need a jump-start to get to the 
marketplace more quickly. The Committee believes that the 
provisions contained in this legislation, especially when 
combined with the tax provisions to be offered from the Finance 
Committee, are the genesis for improving the national security 
of this Nation, enhancing the environment, strengthening self-
government for Native American communities, decreasing 
dependence on foreign sources of energy, aiding the economy, 
and diversifying the energy base of the country.

                          Legislative History

    During the 107th and 108th Congresses, both the Senate and 
the House of Representatives passed comprehensive energy policy 
legislation dealing with energy conservation and efficiency, 
energy research and development, renewable, hydrogen, oil, gas, 
coal, and nuclear energy resources, vehicle efficiency, and 
electricity regulation and infrastructure.
    During the 107th Congress, numerous measures were 
introduced dealing with energy issues either on a comprehensive 
or more limited basis. Both the Senate and the House of 
Representatives passed comprehensive energy policy legislation 
using H.R. 4, the Securing America's Future Energy Act of 2001, 
as the primary legislative vehicle. The House of 
Representatives passed H.R. 4 on August 2, 2001 and it was 
placed on the Senate Calendar on September 4, 2001 without 
reference to Committee. The Senate considered comprehensive 
legislation in the context of Senate Amendment 2917, an 
amendment in the nature of a substitute, offered by Senators 
Daschle and Bingaman. The amendment was offered to S. 517, the 
National Laboratories Partnership Improvement Act of 2001. The 
Senate debated S. 517 on February 15, March 5, 6, 7, 8, 11, 12, 
13, 14, 15, 19, 20, and 21, and April 8, 9, 10, 11, 16, 17, 18, 
22, 23, 24, and 25, 2002 adopting approximately 125 amendments. 
On April 25, 2002, the Senate passed H.R. 4 after agreeing to 
Amendment 2917, as amended, striking the House-passed text of 
H.R. 4 and inserting the text of S. 517, as amended. A 
conference was agreed to and met on June 27, July 25, September 
12, 19, 25, and 26, and October 2 and 3, but was unable to 
resolve the differences between the two bodies before the 107th 
Congress adjourned.
    In the 108th Congress, the principal legislative vehicle 
was H.R. 6, a bill to enhance energy conservation and research 
and development, to provide for security and diversity in the 
energy supply for the American people, and for other purposes. 
The bill was introduced on April 7, 2003, but was not the 
subject of any hearings in the House of Representatives. The 
Committee of the Whole House on the State of the Union began 
consideration of H.R. 6 on April 10, 2003, and the House of 
Representatives passed it on April 11, 2003. H.R. 6 was placed 
on the Senate Calendar on May 6, 2003, without reference to 
committee.
    The Committee conducted several hearings examining various 
aspects of energy. On February 13, the Committee conducted a 
hearing on Oil Supply and Prices; on February 25 on Natural Gas 
Supply and Prices; on February 27 on Energy Production on 
Federal Lands; on March 4 on the Financial Condition of the 
Electricity Market; on March 6 on Energy Use in the 
Transportation Sector; on March 11 on Energy Efficiency and 
Conservation; and on March 27 on various legislative proposals 
dealing with Electricity. The Committee held business meetings 
on April 8, addressing title V--Renewable Energy, title VI--
Energy Efficiency, title VIII--Hydrogen, title X--Personnel and 
Training, and title XIII--State Energy Programs; on April 9 to 
consider title I--Oil and Gas and title II--Coal; on April 10 
to consider title IV--Nuclear Matters; on April 29 to consider 
title III--Indian Energy, title VII--Transportation Fuels, and 
title IX--Research and Development; and on April 30 to consider 
title XI--Electricity.
    On April 30, 2003, the Committee voted to report favorably 
an original bill. On April 30, 2003, the text of the original 
bill, as ordered reported, was introduced by Chairman Domenici 
as S. 14.
    On May 1, 2003, S. 14 was read the second time and placed 
on the Senate Legislative Calendar. On May 6, 2003, the 
original bill was reported, with technical amendments, to the 
Senate as S. 1005. S. Rept. 108-43.
    On May 6, 2003, S. 14 was laid before the Senate by 
unanimous consent. The Senate debated S. 14 on May 8, 9, and 
13, and June 2, 3, 4, 5, 9, 10, 11, and 12, and July 24, 25, 
28, 29, 30, and 31. Over the course of the debate, the Senate 
agreed to approximately 20 amendments to S. 14. On July 31, 
2003, in lieu of further action on S. 14, Senator Frist laid 
H.R. 6 before the Senate by unanimous consent and introduced 
Amendment 1537, which struck the text of the House-passed bill 
and inserted the text of H.R. 4 from the 107th Congress, as 
passed by the Senate on April 25, 2002. On July 31, 2003, the 
Senate passed the House energy bill, H.R. 6, as amended by 
Amendment 1537.
    The Senate asked for, and the House agreed to, a 
conference. The conference met on September 5 and November 17, 
2003. On November 18, 2003 (legislative day November 17, 2003), 
the conference report was filed. H. Rept. 108-375. The House 
passed the conference report on November 18, 2003. The Senate 
began consideration of the conference report on November 19, 
2003. On November 21, 2003, the motion to end debate failed, 
and the conference report was not agreed to by the Senate.
    On February 12, 2004, Senator Domenici introduced S. 2095, 
the Energy Policy Act of 2003, which consisted of the text of 
the conference report on H.R. 6, with certain provisions 
eliminated. On February 23, 2004, S. 2095 was placed on the 
Senate Legislative Calendar. No further action was taken on S. 
2095.
    During the 109th Congress, the Committee conducted several 
hearings examining various aspects of energy. On February 15, 
the Committee conducted a hearing on the Future of Liquefied 
Natural Gas: Siting and Safety; on March 8, the Committee 
conducted a hearing on Power Generation Resource Incentives and 
Diversity Standards; on April 12, the Committee conducted a 
hearing on the Development of America's Oil Shale Resources; 
and on April 26, the Committee conducted a hearing on the 
Department of Energy's Nuclear Power 2010 Program. In addition, 
the Committee conducted a series of meetings on issues to be 
addressed in comprehensive energy legislation. On January 24, 
the Committee met on Natural Gas; on March 10 and April 21, on 
Coal; and on April 5, on Water Supply and Resource Management.
    The Committee conducted five business meetings to consider 
comprehensive energy policy legislation. On May 17, the 
Committee considered title V, Indian Energy; title X, 
Department of Energy Management; and title XI, Personnel and 
Training. On May 18, the Committee considered title IV, Coal; 
title VII, Vehicles and Fuels; title VIII, Hydrogen; and title 
IX, Research and Development. On May 19, the Committee 
considered title I, Energy Efficiency; and title XII, 
Electricity. On May 25, the Committee considered title II, 
Renewable Energy; title VI, Nuclear Matters; and title XVI, 
Studies. On May 26, the Committee considered title III, Oil and 
Gas; and title XIV, Incentives for Innovative Technology. At 
the business meeting on May 26, 2005, the Committee on Energy 
and Natural Resources voted to report favorably an original 
bill.

            Committee Recommendation and Tabulation of Votes

    The Senate Committee on Energy and Natural Resources, in 
open business section on May 26, 2005, by a majority vote of a 
quorum present recommends that the Senate pass an original 
bill, as described herein.
    The rollcall vote on reporting the measure was 21 yeas, 1 
nay as follows:

        YEAS                          NAYS
Mr. Domenici                        Mr. Wyden
Mr. Craig
Mr. Thomas
Mr. Alexander
Ms. Murkowski
Mr. Burr
Mr. Martinez*
Mr. Talent*
Mr. Burns
Mr. Allen
Mr. Smith*
Mr. Bunning
Mr. Bingaman
Mr. Akaka
Mr. Dorgan*
Mr. Johnson*
Ms. Landrieu
Mrs. Feinstein
Ms. Cantwell
Mr. Corzine*
Mr. Salazar

    * Indicates voted by proxy.

                      Section-by-Section Analysis

Section 1. Short Title

    Section 1 is self-explanatory.

Section 2. Definitions

    Section 2 is self-explanatory.

                       TITLE I--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Section 101. Energy and water saving measures in congressional 
        buildings

    Section 101 establishes requirements for energy and water 
savings in Congressional Buildings.

Section 102. Energy management requirements

    Section 102 establishes new energy conservation goals for 
Federal buildings. The section changes the baseline for 
measuring Federal energy performance from 1985 to 2004 and 
requires a 20 percent improvement over 2004 levels by 2015. The 
section provides exclusions from these requirements under 
certain conditions and directs the Secretary to issue 
guidelines that establish criteria for excluding buildings from 
these requirements. Agencies are authorized to retain funds 
appropriated for energy expenditures that are not spent because 
of energy savings in agency buildings and to use those funds 
for energy efficiency and renewable energy projects.

Section 103. Energy use measurement and accountability

    In order to encourage greater energy efficiency and energy 
cost reduction by Federal agencies section 103 requires Federal 
buildings to be metered or sub-metered by October 1, 2012, 
using advanced meters, to the maximum extent practicable. 
Agencies must also develop plans to use real-time electricity 
consumption data to reduce energy costs and consumption.

Section 104. Procurement of energy efficient products

    Section 104 requires Federal agency managers to purchase 
highly energy efficient products for use by those agencies.

Section 105. Energy savings performance contracts

    Section 105 extends the Energy Savings Performance 
Contracts program through FY 2016.

Section 106. Voluntary commitments to reduce industrial energy 
        intensity

    Section 106 encourages business and industry to enter into 
voluntary agreements with the DOE to reduce energy intensity by 
not less than 2.5 percent annually.

Section 107. Federal building performance standards

    Section 107 requires the Secretary to revise Federal 
building energy efficiency performance standards.

Section 108. Increased use of recovered mineral component in federally 
        funded projects involving procurement of cement or concrete

    Section 108 requires Federal agencies to fully implement 
all procurement requirements and incentives that provide for 
the use of cement and concrete incorporating recovered mineral 
component in cement or concrete projects.

            Subtitle B--Energy Assistance and State Programs

Section 121. Weatherization assistance

    Section 121 authorizes the expenditure of $1.23 billion for 
Weatherization Assistance for fiscal years 2006 through 2008.

Section 122. State energy programs

    Section 122 requires the Secretary to assist States in 
reviewing and revising state energy conservation plans and in 
establishing State energy efficiency goals.

Section 123. Energy efficient appliance rebate programs

    Section 123 provides funding for State grant programs to 
provide rebates to consumers purchasing residential Energy Star 
products. It authorizes $50 million for each of fiscal years 
2006 through 2010.

Section 124. Energy efficient public buildings

    Section 124 provides for grants to States to assist units 
of local government in improving the efficiency of public 
buildings and facilities.

Section 125. Low income community energy efficiency pilot program

    Section 125 allows the Secretary to provide grants to units 
of local government, private or non-profit community 
development organizations, and economic development entities of 
Indian tribes to improve energy efficiency, develop 
alternative, renewable and distributed energy supplies and to 
increase energy conservation in low-income rural and urban 
communities.

Section 126. State technologies advancement collaborative

    Section 126 directs the Secretary, in cooperation with the 
States, to establish a 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.

Section 127. Model building energy code compliance grant program

    Section 127 directs the Secretary to carry out a program to 
provide grants to each State that the Secretary determines, 
with respect to new buildings in the State, achieves at least a 
90-percent rate of compliance (based on energy performance) 
with the most recent model building energy codes. Funds may be 
used to carry out activities relating to the implementation of 
building energy codes and building practices that exceed 
efficiency requirements of the most recent model building 
codes. It authorizes the expenditure of $25 million for each of 
fiscal years 2006 through 2010.

                 Subtitle C--Energy Efficient Products

Section 131. Energy star program

    Section 131 establishes a voluntary program within the DOE 
and the Environmental Protection Agency (EPA) 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. The section requires 
regular updating of Energy Star requirements through a 
transparent process that includes solicitation of comments from 
interested parties prior to establishment of new Energy Star 
categories, specifications or criteria along with responses to 
such comments; and allows 12 months of lead time before such 
changes take effect unless such time period is waived or 
reduced by mutual consent between EPA or DOE and the affected 
parties.

Section 132. HVAC maintenance consumer education program

    Section 132 directs the Secretary to 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. Additionally, 
the section authorizes the Small Business Administration to 
work with the DOE and EPA to provide energy efficiency 
information to small business.

Section 133. Public energy education program

    Section 133 directs the Secretary to convene an 
organizational conference for the purpose of establishing an 
ongoing, self-sustaining national public energy education 
program.

Section 134. Energy efficiency public information initiative

    Section 134 directs the Secretary to carry out a 
comprehensive national program, including advertising and media 
awareness to inform consumers about the need to reduce energy 
consumption, the benefits to consumers of reducing energy 
consumption, the importance of low energy costs to economic 
growth and job formation, and practical, cost-effective 
measures consumers can take to reduce consumption of energy. 
$90 million is authorized for each of fiscal years 2006 through 
2010.

Section 135. Energy conservation standards for additional products

    Section 135 establishes energy conservation standards and 
testing requirements for the following products: illuminated 
exit signs; torchiere lighting fixtures; distribution 
transformers; traffic and pedestrian signals; commercial unit 
heaters; medium base compact fluorescent lamps; dehumidifiers; 
pre-rinse spray valves; and mercury vapor lamp ballasts. The 
section also directs the DOE to prescribe standards for: 
refrigerated beverage vending machines; suspended ceiling fans 
and the standby power mode of battery chargers and external 
power supplies. The legislative standards reflect consensus 
agreements that have been negotiated by the trade associations 
representing the manufacturers of the products and 
environmental, energy efficiency and consumer groups. The 
section authorizes the Secretary to set standards for 
electricity use for residential furnace fans, to set more than 
one standard for a product that serves more than one function, 
and, under specified conditions, to use an expedited rulemaking 
process to establish a standard. Finally, the section provides 
that existing State and local standards for a new product added 
by the section are not preempted until the Federal standards 
for such product goes into effect.

Section 136. Energy conservation standards for commercial equipment

    This section establishes conservation standards and testing 
requirements for: commercial air conditioning and heat pumps; 
commercial refrigerators and freezers; commercial clothes 
washers; and commercial ice makers. The standards reflect 
agreements that have been negotiated by the trade associations 
representing the manufacturers of the products and 
environmental, energy efficiency, and consumer groups.

Section 137. Expedited rulemaking

    Section 137 amends the Energy Policy and Conservation Act 
to make conforming changes related to the expedited rulemaking 
in subsection 135.

Section 138. Energy labeling

    Section 138 directs the FTC to undertake a rulemaking to 
consider the effectiveness of the consumer products labeling 
program in assisting consumers in making purchasing decisions 
and improving energy efficiency; and changes to the labeling 
rules (including categorical labeling) that would improve the 
effectiveness of consumer product labels and directs the 
Secretary or the FTC to prescribe labeling requirements for 
products for which standards are set by rule or by statute in 
section 135.

Section 139. Energy efficient electric and natural gas utilities study

    Section 139 directs the Secretary, in consultation with the 
National Association of Regulatory Utility Commissioners and 
the National Association of State Energy Officials, to 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 utilities 
subject to State regulation and non-regulated utilities. This 
section also requires the Secretary to report the findings of 
the study and any recommendations on model policies to promote 
energy efficiency programs.

Section 140. Energy efficiency pilot program

    Section 140 directs the Secretary to 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 States for planning and adopting statewide programs 
that encourage energy efficiency and energy consumption 
reductions. States with adopted programs may use funds for 
expanding and improving their programs. It authorizes $5 
million in each of fiscal years 2006 through 2010.

Section 141. Energy efficiency resource programs

    Section 141 amends the Public Utilities Regulatory Policy 
Act of 1978 to require State regulatory bodies, within 3 years 
after enactment, to consider implementing energy efficiency or 
other demand reduction programs.

               Subtitle D--Measures To Conserve Petroleum

Section 151. Reduction of dependence on imported petroleum

    Section 151 directs the President to develop and implement 
measures in end-uses throughout the economy of the United 
States sufficient to reduce total demand for petroleum in the 
United States by 1,000,000 barrels per day. It requires the 
President to report annually on progress toward meeting that 
goal.

                Subtitle E--Energy Efficiency in Housing

Section 161. Public housing capital fund

    Section 161 allows the Public Housing Capital Fund to 
include use for certain improvements for energy efficiency, 
including integrated utility management and capital planning 
and third party contracts similar to Energy Savings Performance 
Contracts (ESPCs).

Section 162. Energy efficient appliances

    Section 162 requires public housing agencies to purchase 
Energy Star or FEMP-designated products where cost-effective.

Section 163. Energy efficiency standards

    Section 163 updates efficiency standards used in the 
Cranston-Gonzales National Affordable Housing Act low-income 
housing programs to current best codes and practices.

Section 164. Energy strategy for HUD

    Section 164 requires the Department of Housing and Urban 
Development to develop and implement an integrated energy 
strategy for public and assisted housing and requires a report 
to Congress and updates of the report every two years.

                       TITLE II--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Section 201. Assessment of renewable energy resources

    Section 201 directs the Secretary of Energy to publish a 
report, based on his most recent assessment, containing a 
detailed inventory of the available quantity and 
characteristics of renewable energy resources in the United 
States.

Section 202. Renewable energy production incentive

    Section 202 extends funding authorization for incentive 
programs for producing electricity from renewable energy 
sources, expands eligibility to cooperatives and municipal 
utilities, and includes landfill gas as an eligible energy 
resource. The section also provides that if funds are not 
available for full payments in a given calendar year, 60 
percent of available funds shall be assigned to solar, wind, 
geothermal, and closed-loop biomass.

Section 203. Federal purchase requirement

    Section 203 requires the Federal Government to try to 
purchase not less than 3 percent renewable electric energy in 
fiscal years 2007 through 2009, increasing to not less than 7.5 
percent renewable electric energy in fiscal year 2013 and 
thereafter. The section also provides a double credit for 
renewable electric energy produced and used on-site at a 
Federal facility, as well as for renewable energy produced on 
Federal or Indian lands and used at a Federal facility.

Section 204. Renewable content of motor vehicle fuel

    Section 204 mandates that motor vehicle fuel sold or 
dispensed to consumers in the contiguous United States contain 
renewable fuel as defined by this section. Under the mandate 4 
billion gallons of renewable fuel must be used in 2006 rising 
to 8 billion gallons in 2012. After 2012 the annual volume of 
renewable fuel must be at least equal to the percentage of 
renewable fuel, relative to the total number of gallons of 
gasoline introduced into commerce in 2012. The section also 
contains provisions relating to participation by small 
refiners, opportunities for a State or States to waive the 
program requirements, and provisions for a fuel producer credit 
and trading program.

Section 205. Federal agency ethanol-blended gasoline and biodiesel 
        purchasing requirement

    Section 205 requires the head of each Federal agency to 
ensure that the agency purchases ethanol-blended gasoline 
containing at least 10 percent ethanol rather than nonethanol-
blended gasoline for use in agency vehicles. The section also 
requires that Federal agencies purchase biodiesel for diesel 
fueled vehicles based on a schedule set forth in this section.

Section 206. Data collection

    Section 206 requires the Administrator of the Energy 
Information Administration of the DOE to conduct and publish 
the results of a survey of renewable fuels demand in the motor 
vehicle fuels market in the United States on a monthly basis.

Section 207. Sugar cane ethanol program

    Section 207 directs the Secretary of Energy to establish a 
multi-State project designed to study the production of ethanol 
from cane sugar, sugar cane, and sugar cane byproducts.

Section 208. Modification of Commodity Credit Corporation bioenergy 
        program

    Section 208 is self-explanatory.

Section 209. Advanced biofuel technologies program

    Section 209 directs the Secretary of Energy, in 
consultation with the Secretary of Agriculture, to establish a 
program to demonstrate advanced technologies for the production 
of alternative transportation fuels.

Section 210. Assistance for rural communities with high energy costs

    Section 210 permits the Secretary and the Administrator of 
the Rural Utilities Service to use authorities provided 
pursuant to the 1936 Rural Electrification Act and the 
Consolidated Farm and Rural Development Act, including the 
deferral, extension, refinancing, restructuring, and reduction 
of loans made under those Acts, to make grants available to 
existing rural electric projects in Alaska. The purpose of such 
grants is to aid electric borrowers serving rural Alaskan 
communities to reduce consumer rates, maintain reliable 
service, preserve the economic feasibility of an electric 
system, and avoid default.

                       Subtitle B--Insular Energy

Section 221. Definitions

    Section 221 defines the terms used in the subtitle.

Section 222. Assessment

    Section 222 authorizes the Secretary of Energy, in 
consultation with the Secretary of the Interior, to conduct an 
assessment of the energy needs of the U.S.-affiliated insular 
areas and submit a report within one year of enactment to 
Congress that evaluates the strategies or projects with the 
greatest potential for reducing the dependence of each insular 
area on imported fossil fuels asused for the generation of 
electricity, and, when there is a significant need for distributed 
energy, identify promising strategies and projects for meeting that 
need.

Section 223. Project feasibility studies

    Section 223 authorizes the Secretary of Energy, in 
consultation with the Secretary of the Interior, and upon the 
request of the local electric utility and a commitment by the 
utility to at least ten percent of the cost, to conduct a 
feasibility study of a project to implement a strategy or 
project identified under section 222 as having the potential 
to--(1) significantly reduce the dependence of an insular area 
on imported fossil fuels; or (2) provide needed distributed 
generation to an insular area.

Section 224. Implementation

    Section 224 authorizes, upon a determination by the 
Secretary of Energy, in consultation with the Secretary of the 
Interior, that a project is feasible under section 223, and a 
commitment by the local electric utility to operate and 
maintain the project, such technical and financial assistance 
as the Secretary determines is appropriate for the 
implementation of the project.

Section 225. Authorization of appropriations

    Section 225 authorizes to be appropriated to the Secretary 
of Energy: (1) $500,000 for the completion of the assessment 
under section 222; (2) $500,000 for each fiscal year for 
project feasibility studies under section 223; and (3) 
$5,000,000 for each fiscal year for project implementation 
under section 224. No insular area may receive more than 20 
percent of the total funds made available during any 3-year 
period unless the Secretary determines that providing funding 
in excess of that percentage best advances existing 
opportunities to meet the objectives of this subtitle.

                       Subtitle C--Biomass Energy

Section 231. Definitions

    Section 231 defines the terms used in the subtitle.

Section 232. Biomass commercial utilization grant program

    Section 232 authorizes the Secretary of the Interior and 
the Secretary of Agriculture to make grants to offset the cost 
of purchasing biomass from hazardous fuels reduction and other 
forest restoration projects on Federal or Indian lands to 
produce electricity, heat, or transportation fuels. This 
section authorizes appropriations of $12.5 million to each 
Secretary for each of fiscal years 2006 through 2010.

Section 233. Improved biomass utilization program

    Section 233 authorizes the Secretary of the Interior and 
the Secretary of Agriculture to make grants to offset the cost 
of developing or researching proposals to improve or add value 
to the use of biomass from hazardous fuels reduction and other 
forest restoration projects. This section authorizes 
appropriations of $12.5 million to each for each of fiscal 
years 2006 through 2010.

Section 234. Report

    Section 224 directs the Secretaries of the Departments of 
the Interior and Agriculture to provide a joint report on the 
interim results of the program no later than 3 years after the 
date of enactment.

                     Subtitle D--Geothermal Energy

Section 241. Leasing procedures

    Section 241 modifies the Geothermal Steam Act to require 
that all lands to be leased be made available on a competitive 
basis. If no competitive interest in the lands exists, they can 
be made available for leasing on a noncompetitive basis for a 
period of two years. Pending lease applications are 
grandfathered. The mechanics for this system of competitive 
leasing is patterned after the Federal onshore oil and gas 
leasing program.

Section 242. Direct use

    Section 242 directs the Secretary to issue a schedule of 
fees (as opposed to royalties) for direct use geothermal 
(geothermal used for a purpose other than commercial generation 
of electricity and not sold--e.g., geothermal steam used for 
greenhouses). This section also gives the Secretary discretion 
to provide an exception from the requirement for competitive 
leasing for land to be used exclusively for direct use if the 
Secretary follows certain procedures and determines that no 
competitive interest exists.

Section 243. Royalties

    Section 243 requires the Secretary to issue a rule within 
one year to provide a simplified methodology for calculating 
royalties on Federal geothermal resources. It requires the 
Secretary to consider a methodology based on gross proceeds 
from the sale of electricity and to ensure that the final 
regulation results in the same level of royalty revenues over a 
10-year period as the current regulation. This section also 
provides that existing leases can be modified on the 
application of the lessee to conform to the schedule of fees 
for leases for direct use and to the new simplified methodology 
for all other leases.

Section 244. Geothermal leasing and permitting on Federal land

    Section 244 requires the Secretaries of the Interior and 
Agriculture to enter into a memorandum of understanding 
regarding leasing and permitting for geothermal development of 
public lands and National Forest System lands. It requires a 
joint data retrieval system for tracking lease and permit 
applications.

Section 245. Assessment of geothermal energy potential

    Section 245 requires the Secretary to update the 1978 
Assessment of Geothermal Resources.

Section 246. Cooperative or unit plans

    Section 246 clarifies the authority of the Secretary with 
respect to the creation of cooperative or unit agreements for 
the development of Federal geothermal resources.

Section 247. Royalty on byproducts

    Section 247 provides that the royalty on any byproduct 
mineral be at the applicable rate contained in the Mineral 
Leasing Act.

Section 248. Lease duration and work commitment requirements

    Section 248 requires the Secretary to establish payments at 
a level that ensures diligent development of the lease.

Section 249. Annual rental

    Section 249 increases the rentals required to be paid on 
Federal geothermal leases, escalating over time from $1 (for 
noncompetitive leases) and $2 (for competitive leases) to $5 
per acre. This section also modifies the provisions relating to 
termination of a lease for failure to pay rental.

Section 250. Advanced royalties required for cessation of production

    Section 250 provides that a lease will remain in effect if 
production ceases after coming into production if the lessee 
pays for an aggregate of not more than 10 years an advance 
royalty that is the monthly average royalty paid during the 
period of production. The advance royalty can be credited 
against future production royalties. There is an exception in 
cases where the production ceases due to a force majeure.

Section 251. Leasing and permitting on Federal land withdrawn for 
        military purposes

    Section 251 requires the Secretaries of the Interior and 
Defense to submit a joint report on leasing and permitting 
activities for geothermal energy on Federal land withdrawn for 
military purposes.

Section 252. Technical amendments

    Section 252 makes a series of technical amendments to the 
Geothermal Steam Act of 1970, replacing the term ``geothermal 
steam and associated resources'' with ``geothermal resources'' 
throughout the Act, and providing section titles for each 
section of the Act.

                       Subtitle E--Hydroelectric

Section 261. Alternative conditions and fishways

    Subsection (a) amends section 4(e) of the Federal Power Act 
to provide that the license applicant and any party to the 
proceeding is 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 
4(e) conditions. All disputed issues of material fact raised by 
any party are to be determined in a single trial-type hearing 
to be conducted within a time frame established by FERC for 
each license proceeding. Within 90 days of the date of 
enactment, the Secretaries of the Interior, Commerce, and 
Agriculture are directed to establish jointly by rule 
procedures for the expedited trial-type hearing, including an 
opportunity to undertake discovery and cross-examine witnesses, 
in consultation with the FERC.
    Subsection (b) amends section 18 of the Federal Power Act 
to provide the same trial-type hearing requirements with 
respect to prescriptions sought by a resource agency.
    Subsection (c) amends the Federal Power Act by adding a new 
section addressing alternative conditions and prescriptions. It 
allows the license applicant or any other party to the license 
proceeding to propose an alternative condition or prescription. 
The subsection directs the Secretary of the resource agency to 
accept the proposed alternative condition or prescription 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 the 
alternative condition provides for the adequate protection and 
utilization of the reservation (or in the case of a 
prescription, that the alternative will be no less protective 
than the fishway initially proposed by the Secretary) and the 
Secretary concurs with the license applicant's judgment that 
the alternative condition or prescription will either cost 
significantly less to implement or result in improved operation 
of the project works for electricity production. The 
concurrence by any Secretary of the license applicant's 
judgment on costs and project operations should be based upon a 
determination that the judgment is supported by substantial 
evidence. The Secretary must submit into the record a written 
statement explaining the basis for any condition or 
prescription selected and the reason for not accepting any 
proposed alternative condition or prescription. The written 
statement must demonstrate that the Secretary gave equal 
consideration to a number of specified factors. The subsection 
provides that if the Secretary does not accept an applicant's 
proposed alternative condition or prescription and the FERC 
finds the resource agency's condition or prescription to be 
inconsistent with applicable law, the FERC may refer the 
dispute to its Dispute Resolution Service for a non-binding 
advisory. The Committee does not intend section 261 to shift 
the burden of proof or to change the standard of proof required 
by section 556(d) of title 5, United States Code, to support an 
agency determination.

Section 262. Alaska State jurisdiction over small hydroelectric 
        projects

    The provision is self-explanatory.

Section 263. Flint Creek hydroelectric project

    The provision is self-explanatory.

                         TITLE III--OIL AND GAS

           Subtitle A--Petroleum Reserve and Home Heating Oil

Section 301. Permanent authority to operate the Strategic Petroleum 
        Reserve and other energy programs

    Section 301 permanently authorizes the Strategic Petroleum 
Reserve (SPR). The SPR was established pursuant to the 
authority granted under the Energy Policy and Conservation Act 
(EPCA). This section authorizes the Secretary of Energy to 
expeditiously as practicable, without incurring excessive cost 
or appreciably affecting the price of gasoline or heating oil 
to consumers, acquire petroleum sufficient to fill the SPR to 
the one billion barrel capacity authorized by the EPCA.
    Section 301 also permanently authorizes the Northeast Home 
Heating Oil Reserves.

Section 302. National oilheat research alliance

    Section 302 amends the Energy Act of 2000 (P.L. 106-469; 42 
U.S.C. 6201) to extend the authorization for the National 
Oilheat Research Alliance (NORA) until nine years after the 
date on which NORA was established.

                   Subtitle B--Production Incentives

Section 311. Definition of Secretary

    Section 311 is self-explanatory.

Section 312. Program on oil and gas royalties-in-kind

    Subsection (a) provides that the section applies to all 
royalty-in-kind (RIK) accepted by the Secretary under specified 
statutes.
    Subsection (b) provides that all royalty accruing for oil 
or gas under a Federal lease issued under those authorities 
shall, on the demand of the Secretary, be paid in oil or gas 
beginning on the date of enactment and sets forth other 
requirements applicable to RIK payments. The subsection gives 
the Secretary the authority to retain and use a portion of the 
revenues generated from RIK sales to pay costs of transporting, 
processing, or disposing of the royalty production and for 
salaries and administrative costs of the RIK program.
    Subsection (c) provides that if a lessee, pursuant to an 
agreement with the United States or if provided in the lease, 
processes the royalty gas or delivers the oil or gas at a point 
not on or adjacent to the lease area, the Secretary shall 
compensate the lessee in a manner articulated in the 
subsection.
    Subsection (d) provides that the Secretary may receive oil 
or gas royalties-in-kind only if the Secretary determines that 
doing so provides benefits to the United States greater than or 
equal to those likely to have been received had royalties been 
taken in value.
    Subsections (e), (f), (g), (h), (i) and (j) are self-
explanatory.

Section 313. Marginal property production incentives

    Subsection (a) defines ``marginal property'' as set forth 
in the section, until such time as the Secretary issues 
regulations that prescribe a different definition, with respect 
to Federal onshore oil and gas leases.
    Subsection (b) sets forth conditions for the reduction of 
the royalty rate on such properties.
    Subsection (c) sets forth the reduced royalty rate.
    Subsection (d) sets forth the authority for the termination 
of the reduced royalty rate.
    Subsection (e) explicitly provides authority for the 
Secretary of the Interior to prescribe different standards for 
royalty relief by regulation. The subsection directs the 
Secretary to accept and consider petitions for royalty relief 
for marginal properties on the OCS under existing authorities 
and to act on such petitions within 90 days.
    Subsection (f) is self-explanatory.

Section 314. Incentives for natural gas production from deep wells in 
        the shallow waters of the Gulf of Mexico

    Section 314 is self-explanatory.

Section 315. Royalty relief for deep water production

    Section 315 is self-explanatory.

Section 316. Alaska offshore royalty suspension

    Section 316 authorizes the Secretary of the Interior under 
the Outer Continental Shelf Lands Act to give royalty relief to 
existing, non-producing leases for production in Alaska 
frontier regions, as specified in the section.

Section 317. Oil and gas leasing in the National Petroleum Reserve in 
        Alaska

    Subsection (a) transfers authorities and is self-
explanatory.
    Subsection (b) restates the requirement of current law that 
the Secretary conduct an expeditious program of competitive oil 
and gas leasing in the NPRA. It states that the Secretary 
should prevent to the extent practicable and mitigate adverse 
effects from leasing and development activities. It also states 
that the Secretary minimize to the extent practicable the 
impact to surface resources and consolidate facilities. 
Subsection (b) does not present a new standard for the leasing 
program conducted under this section, but rather is a further 
exposition of existing law. It does not express the view of 
Congress as to whether the BLM has or has not met the standard. 
The section provides that leases be for an initial period of 
not more than 10 years and so long thereafter as oil or gas is 
produced from the lease in paying quantities or drilling or 
reworking operations, as approved by the Secretary, are 
conducted on the leased land. The section provides that at the 
end of the primary term of the lease, the Secretary shall renew 
the lease for one additional 10-year term if certain standards 
as set forth in the subsection are met and the lessee pays a 
renewal fee of $100 per acre. The subsection authorizes the 
Secretary to unitize leases and sets forth requirements 
relating to unit agreements. The section conforms the 
Secretary's authority to waive, suspend or reduce royalties on 
the NPRA with the authority under the Mineral Leasing Act with 
respect to onshore oil and gas leasing in the lower 48 states. 
The provision requires the Secretary to waive administration of 
leases where the Native Regional Corporation owns the 
subsurface estate; however, the provision does not limit the 
authority of the Secretary to manage the federally-owned 
surface estate within the NPRA.
    Subsection (c) makes conforming amendments.

Section 318. North Slope science initiative

    Subsection (a) establishes a North Slope Science Initiative 
to implement efforts to coordinate collection of scientific 
data to provide a better understanding of the terrestrial, 
aquatic, and marine ecosystems of the North Slope of Alaska.
    Subsections (b), (c), (d), (e), and (f) are self-
explanatory.

Section 319. Orphaned, abandoned, or idled wells on Federal land

    Subsection (a) requires the Secretary of the Interior, in 
cooperation with the Secretary of Agriculture, to establish a 
program to remediate, reclaim, and close, orphaned, abandoned, 
or idled wells on Federal lands administered by the Secretaries 
of the Interior and Agriculture.
    Subsections (b), (c), (d), and (e) sets forth requirements 
for the program, provisions related to cooperation and 
consultation, requirements for a plan, and defines ``idled 
well''.
    Subsection (f) requires the Secretary of Energy to 
establish a technical assistance program to provide assistance 
to states in dealing with orphaned and abandoned wells on state 
and private lands.
    Subsection (g) authorizes funding for the programs.

Section 320. Combined hydrocarbon leasing

    The section amends the Mineral Leasing Act to authorize the 
Secretary of the Interior to issue separately leases for 
exploration for and extraction of tar sand and oil and gas in 
areas that contain a combination of tar sand and oil and gas.

Section 321. Alternate energy-related uses on the Outer Continental 
        Shelf

    Section 321 amends the Outer Continental Shelf Lands Act to 
provide authority to the Secretary of the Interior to grant 
leases, easements, or rights-of-way for energy and related 
purposes on the OCS. The section does not allow the grant of 
easements or rights-of-way for activities that support the 
exploration, development, or production of oil and gas in areas 
where oil and gas preleasing, leasing and related activities 
are prohibited by a congressional moratorium or a withdrawal 
pursuant to section 12 of the Outer Continental Shelf Lands 
Act. The authority does not apply to any area within the 
exterior boundaries of any unit of the National Park System, 
National Wildlife Refuge System, or National Marine Sanctuary 
System, or any National Monument. The section requires the 
Secretary to undertake a coordinated OCS mapping initiative to 
assist in decision-making relating to the siting of facilities 
under the section.

Section 322. Preservation of geological and geophysical data

    Section 322 requires the Secretary to carry out an 
initiative with the States to archive and provide a national 
catalog of geologic, geophysical, and engineering data, maps, 
well logs and samples. The Secretary is required to establish a 
data archive system of repositories and to provide technical 
and financial assistance related to the archival material.

Section 323. Oil and gas lease acreage limitations

    Section 323 amends the Mineral Leasing Act provision to 
increase the limitation on the amount of acreage that can be 
held by a person under lease in any one State.

Section 324. Assessment of dependence of State of Hawaii on oil

    Section 324 requires the Secretary of Energy to assess the 
economic implications of the dependence of the State of Hawaii 
on oil as the principal source of energy for the State 
including; the prospects for supply disruptions and price 
volatility impacts on the State economy; the economic 
relationship between the use of residual fuel in oil-fired 
generation of electricity and the consumption of refined 
petroleum products in transportation; the feasibility of 
increasing the contribution of renewable energy for the 
generation of electricity; the feasibility of using liquefied 
natural gas for electric generation; the feasibility for using 
renewable energy (including hydrogen) for transportation; and 
the development of hydrogen from renewable resources and its 
application to the energy needs of the State.
    The section further directs the Secretary to prepare and 
submit a report to Congress on the findings, conclusions and 
recommendations of this assessment within 300 days after the 
date of enactment.

Section 325. Denali Commission

    Section 325 authorizes the appropriation of funds to the 
Denali Commission to carry out energy programs and power cost 
equalization programs. It also provides requirements for 
conducting open commission meetings including public 
announcements about such meetings and the maintaining 
transcripts or minutes.

Section 326. Comprehensive inventory of OCS oil and natural gas 
        resources

    Section 326 requires the Secretary of the Interior to 
conduct an inventory and analysis of OCS oil and gas resources. 
The Secretary is directed to use data on resources offshore 
Canada and Mexico, as well as using any available technology 
(except for drilling which is explicitly prohibited), including 
3-D seismic technology, to develop accurate domestic oil and 
gas resource estimates. The Secretary is to submit a report 
within 6 months of enactment and update the report at least 
every 5 years.

Section 327. Review and demonstration program for oil and gas 
        production

    Section 327 requires the Secretaries of the Interior and 
Energy to review of opportunities to enhance production of oil 
and gas from public land and the OCS through royalty or 
production incentives to lessees that inject carbon dioxide to 
enhance recovery. The provision also requires the Secretary of 
Energy to establish a competitive grant program for enhancing 
recovery of oil and gas by injecting carbon dioxide. It 
provides for up to 10 projects in the Willistin Basin of North 
Dakota and Montana and 1 project in the Cook Inlet Basin of 
Alaska.

                   Subtitle C--Access to Federal Land

Section 341. Federal onshore oil and gas leasing practices

    Section 341 provides for a review by the National Academy 
of Public Administration of the Federal onshore oil and gas 
leasing program. The Secretary of the Interior is to conduct an 
internal review concurrent with the work of the National 
Academy of Public Administration. The Secretary of the Interior 
and the National Academy are to report findings and 
recommendations to Congress within 18 months.

Section 342. Management of Federal oil and gas leasing programs

    Section 342 directs the Secretary of the Interior to ensure 
expeditious compliance with the requirements of the National 
Environmental Policy Act of 1969, improve consultation and 
coordination with the States, and improve collection, storage, 
and retrieval of information related to onshore oil and gas 
leasing on lands otherwise available for leasing. The section 
directs the Secretary to improve inspection and enforcement of 
oil and gas activities under the onshore oil and gas leasing 
program. The section provides that the Secretary of Agriculture 
also ensure expeditious compliance with all applicable 
environmental laws and improve collection, storage and 
retrieval of information. The provision requires the Secretary 
of the Interior to develop and implement best management 
practice for the onshore oil and gas leasing program. The 
section authorizes additional appropriations for the BLM, Fish 
and Wildlife Service, and Forest Service for these purposes.

Section 343. Consultation regarding oil and gas leasing on public land

    Section 343 requires the Secretaries of the Interior and 
Agriculture to enter into a memorandum of understanding 
regarding oil and gas leasing on public lands and National 
Forest System lands to establish procedures to ensure timely 
processing of leasing authorizations and applications for 
permits to drill. Section 343 requires Secretaries to agree to 
establish a joint data retrieval system and a joint Geographic 
Information System for mapping.

Section 344. Pilot program to improve federal permit coordination

    Section 344 requires the Secretary of the Interior to 
establish a Federal Permit Streamlining Pilot Project. Seven 
Western offices of the BLM are identified for participation in 
the project. The provision requires that relevant Federal 
agencies deploy staff to work with BLM land managers as a team 
on all environmental permits and land use planning documents in 
order to coordinate and improve Federal decisionmaking with 
respect to the permits. This section also requires the 
Secretary to prepare a report for submission to the President. 
The section directs the Secretary of the Interior to assign 
such additional personnel to the seven BLM offices as necessary 
to ensure effective implementation of the Pilot Program and the 
other programs administered by the BLM offices pursuant to the 
statutory mandate for the multiple use of public lands.

Section 345. Energy facility rights-of-ways and corridors on Federal 
        land

    Section 345 requires the Secretary of the Interior, with 
respect to public lands, and the Secretary of Agriculture, with 
respect to National Forest System lands, to designate utility 
corridors in Western States and to incorporate such corridors 
into land use and resource management plans within 24 months 
following execution of the memorandum required by the section. 
The section requires the Secretary of Energy to develop a 
memorandum of understanding with the Secretary of the Interior, 
the Secretary of Agriculture, and the Secretary of Defense to 
coordinateapplicable Federal authorizations and environmental 
reviews related to a proposed or existing utility facility.

Section 346. Oil shale leasing

    The section requires the Secretary of the Interior to offer 
lands otherwise available for leasing for a period to be 
determined by the Secretary for purposes of research and 
development of innovative technologies for the recovery of 
shale oil from oil shale resources on public land. Within 18 
months after the date of enactment, the Secretary must complete 
a programmatic environmental impact statement and a report 
relating to the potential leasing for commercial purposes of 
oil shale resources on public land. The U.S. Geological Survey 
is directed to undertake an assessment of oil shale resources.

                      Subtitle D--Coastal Programs

Section 371. Coastal Impact Assistance Program

    Section 371 authorizes the appropriation for fiscal years 
2006 through 2010 of $500 million per year for payments to 
Producing Coastal States with approved Coastal Impact 
Assistance Plans and political subdivisions in accordance with 
a formula set forth in the section. Thirty-five percent of a 
State's allocable share will be paid to the coastal political 
subdivisions in the State. Amounts provided under the section 
must be used only for one or more of the following: (i) 
Projects and activities for the conservation, protection, or 
restoration of coastal areas, including wetlands; (ii) 
mitigating damage to fish, wildlife, or natural resources; 
(iii) planning assistance and administrative costs of complying 
with the provisions of this section; (iv) implementation of 
approved marine, coastal or conservation plans; (v) mitigating 
the impacts of OCS activities through funding onshore 
infrastructure and public service needs.

                        Subtitle E--Natural Gas

Section 381. Exportation or importation of natural gas

    Section 381 clarifies FERC's exclusive jurisdiction under 
the Natural Gas Act for siting, construction, expansion and 
operation of import/export facilities located onshore or in 
State waters. This section does not provide FERC eminent domain 
authority over siting LNG facilities. The Committee believes 
that State and local government involvement should be a 
critical part of the FERC siting process. In particular, State 
and local government entities should play an important role in 
the development of the safety and security guidelines for 
proposed facilities. The committee believes that the State and 
local governments are in the best position to understand the 
needs of the community surrounding proposed sites and should 
remain a critical asset to the FERC during the siting process.
    Section 381 also codifies FERC's Hackberry policy. In 
Hackberry, FERC allowed the owners of a proposed LNG 
regasification terminal to negotiate contracts for terminal 
services directly with prospective LNG suppliers (eliminating 
open access requirements) as a way to encourage site 
development.

Section 382. New natural gas storage facilities

    Section 382 allows FERC to grant new storage capacity 
market-based rate treatment, notwithstanding the fact the 
applicant may have market power, if (1) it is in the public 
interest, (2) it is needed storage capacity, and (3) customers 
are adequately protected.

Section 383. Process coordination; hearings; rules of procedures

    Section 383 establishes FERC as the lead agency for NEPA 
purposes and provides FERC authority to set schedules for 
required Federal authorizations. Agencies with jurisdiction 
over natural gas infrastructure are encouraged to coordinate 
their proceedings with the timeframe established by FERC. If a 
schedule deadline is not met, the President may issue a 
decision.

Section 384. Penalties

    Section 384 increases penalties under the Natural Gas Act 
and Natural Gas Policy Act, parallel to increases in the 
Federal Power Act ($5,000 to $1,000,000). Section 384 also 
creates a civil penalty under Natural Gas Act.

Section 385. Market manipulation

    Section 385 amends the Natural Gas Act to ban 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 connection with jurisdictional 
natural gas transactions, that are in violation of FERC rules.

Section 386. Natural gas market transparency rules

    Section 386 authorizes FERC to establish an electronic 
information system to provide information about the price or 
transportation costs of natural gas in interstate commerce. 
Section 386 requires FERC to exempt from disclosure information 
the disclosure of which would be detrimental to the operation 
of an effective market or which would jeopardize system 
security. Section 386 shall not affect the CFTC's exclusive 
jurisdiction with respect to commodities under the Commodity 
Exchange Act. Section 386 provides that FERC shall not compete 
with private sector publishers of energy prices.

Section 387. Deadline for decision on appeals of consistency 
        determination under the Coastal Zone Management Act of 1972

    Section 387 amends the CZMA by establishing a 270-day 
period in which the Secretary of Commerce must close the 
decision record. The Secretary may stay the 270-day clock for 
up to 60 days to acquire supplemental information regarding the 
consistency determination or clarifying information from a 
party to the proceeding related to information already in the 
record. Section 387 provides that the Secretary has 90 days 
after the record is closed (90 days after the 270 to 330 days, 
if stayed 60 days) to issue a decision or explain why it 
cannot, in which case theSecretary has an additional 45 days to 
issue a decision. In total, section 387 allows for 1 year and 100 days 
for the Secretary to complete action on an appeal of a consistency 
determination.

Section 388. Federal-State liquefied natural gas forums

    Section 388 directs the Secretary of Energy, in cooperation 
and consultation with Secretary of Transportation, Secretary of 
Homeland Security, FERC, and Governors of coastal States, to 
convene at least 3 forums to discuss LNG siting issues such as 
siting, safety, and emergency response. The purpose of the 
forums is to identify and develop best practices related to LNG 
and to foster cooperative efforts.

Section 389. Prohibition on trading and serving by certain persons

    Section 389 allows courts to prevent anyone who manipulates 
markets from serving as officers or directors of gas utility 
companies or engaging in the business of selling or purchasing 
gas or gas transmission services jurisdictional to FERC.

             Subtitle F--Federal Coalbed Methane Regulation

Section 391. Federal coalbed methane regulation

    Section 391 provides that any State that, as of the date of 
enactment of this Act, is included 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 the list 
if, not later than 3 years after the date of enactment of this 
Act, the State takes steps to implement a program promoting the 
permitting, drilling and production of coalbed methane wells 
within that State.

                             TITLE IV--COAL

                Subtitle A--Clean Coal Power Initiative

Section 401. Authorization of appropriations

    Section 401 authorizes $200 million annually for each of 
fiscal years 2006 through 2014 to carry out the purposes of 
this subtitle. It requires a report from the Secretary of 
Energy that contains an 8-year plan for implementing the Clean 
Coal Power Initiative.

Section 402. Project criteria

    Section 402 establishes criteria for eligibility to receive 
assistance under this subtitle. It establishes emissions and 
thermal efficiency criteria for gasification projects and 
``other projects.'' It requires the Secretary to allocate at 
least 80 percent of funds to coal gasification technologies and 
not more than 20 percent of funds to other combustion 
technologies. All projects must meet increasingly strict 
environmental and thermal efficiency performance standards. The 
section permits the expenditure of funds on carbon capture and 
sequestration technologies. The Secretary must give priority to 
projects that include carbon capture and sequestration as part 
of the project. The section also places this program under the 
cost-sharing requirements of section 1002, in lieu of the 
existing cost-sharing requirements (including repayment 
requirements) that have been imposed on the program in past 
appropriations Acts.

Section 403. Report

    Section 403 requires the Secretary to report within one 
year of the date of enactment and every two years thereafter on 
the status and progress of the Initiative.

Section 404. Clean coal centers of excellence

    Section 404 requires the Secretary to award competitive 
grants to establish centers of excellence for clean coal 
technologies at institutions of higher education selected for 
their potential to advance new clean coal technologies.

Section 405. Integrated coal/renewable energy system

    Section 405 allows the Secretary of Energy to provide loan 
guarantees to an integrated gas combined cycle project that 
uses coal and wind and other renewable energy sources and that 
has the capacity to sequester carbon dioxide and provide a 
source of hydrogen.

Section 406. Loan to place Alaska Clean Coal Technology facility in 
        service

    Section 406 allows the Secretary of Energy to grant a 
direct loan of not more than $80 million to allow the borrower 
to place a clean coal technology plant into reliable operation 
for the generation of electricity.

Section 407. Western integrated coal gasification demonstration project

    Section 407 directs the Secretary of Energy to carry out a 
demonstration project to produce energy from coal mined in the 
Western United States using integrated gasification combined 
cycle technology capable of sequestering carbon dioxide 
emissions.

                    Subtitle B--Federal Coal Leases

Section 411. Repeal of the 160-acre limitation for coal leases

    Section 411 amends the Mineral Leasing Act to allow leases 
up to 320 acres subject to certain limitations.

Section 412. Mining plans

    Section 412 amends the Mineral Leasing Act to allow the 
Secretary of the Interior to allow a period of more than 40 
years if the Secretary makes certain determinations regarding 
maximum economic recovery of a coal deposit, and that the 
longer period is in the interest of the orderly, efficient, or 
economic development of a coal resource.

Section 413. Payment of advance royalties under coal leases

    Section 413 amends the Mineral Leasing Act to extend 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 to no more than twenty years.

Section 414. Elimination of deadline for submission of coal lease 
        operation and reclamation plan

    Section 414 eliminates the deadline for submitting an 
operation and reclamation plan.

Section 415. Application of amendments

    Section 415 stipulates that amendments made by this 
subtitle apply to any coal lease issued on or after the date of 
enactment of this Act. Amendments made by this Act may apply to 
any lease issued before the date of enactment on the date of 
readjustment of the lease under section 7(a) of the Mineral 
Leasing Act or on request by the lessee, prior to the date of 
adjustment.

                         TITLE V--INDIAN ENERGY

Section 501. Short title

    Section 501 contains the short title, the ``Indian Tribal 
Energy Development and Self-Determination Act of 2005''.

Section 502. Office of Indian Energy Policy and Programs

    Section 502 amends title II of the DOE Organization Act to 
create the Office of Indian Energy Policy and Programs within 
the DOE to support the development and use of tribal energy 
resources. It states that a director shall be appointed by the 
Secretary of Energy and outlines the duties of the director.

Section 503. Indian energy

    Section 503 provides a complete substitute for title XXVI 
of the Energy Policy Act of 1992 specifically as follows:
    Section 2601 defines terms used in the Act.
    Section 2602(a) requires the Secretary of the Interior to 
implement an Indian energy resource development program to 
assist Indian tribes in the development of their resources and 
to further the goal of Indian self-determination. The Secretary 
is authorized to provide grants and low-interest loans to 
qualifying tribes and Tribal Energy Resource Development 
Organizations. Such sums as are necessary to carry out the 
subsection are authorized to be appropriated from fiscal year 
2006 through 2016.
    Section 2602(b) directs the Director of the Office of 
Indian Energy Policy and Programs at DOE to develop a program 
to assist consenting tribes in meeting energy education, 
research and development, planning and management needs and 
authorizes the Director to provide grants to tribes or tribal 
energy resource development organizations. The Director is also 
required to develop a program to provide tribes with the 
opportunity to participate in carbon sequestration practices. 
The sum of $20 million is authorized to be appropriated for 
each of fiscal years 2006 through 2016.
    Section 2602(c) authorizes, under specified conditions, the 
Secretary of Energy to provide loan guarantees for an amount 
equal to not more than 90 percent of unpaid interest and 
principal due on any loan made to an Indian tribe for energy 
development. The aggregate outstanding sum guaranteed by the 
Secretary of Energy shall not exceed $2 billion.
    Section 2602(d) authorizes Federal agencies to give 
preference in purchasing electricity or other energy products 
to Indian-owned or controlled entities under specified 
conditions.
    Section 2603 authorizes the Secretary of the Interior to 
provide grants to tribes to inventory, study, and develop their 
energy resources and to enhance the legal and administrative 
ability of tribes to manage their energy resources.
    Section 2604 establishes a program by which an Indian tribe 
may submit to the Secretary of the Interior for approval a 
tribal energy resources agreement (TERA) for the development of 
energy resources on tribal land and gives the Secretary one 
year to approve or disapprove that agreement. Upon approval of 
the TERA, Indian tribes are authorized to enter into leases and 
business agreements, or approve rights-of-way for applicable 
energy projects without separate approval of the Secretary of 
the Interior. The Secretary is required to conduct a periodic 
review and evaluation of the tribe's activities and the tribes 
must monitor the activities of their business partners. The 
section outlines a process for public input into proposed TERAs 
as well as a process to review alleged violations of the TERA 
by an applicable tribe and the Secretary. There are authorized 
to be appropriated such sums as necessary from 2006 through 
2016 to carry out this section.
    The program established by this section advances the 
ongoing policy of encouraging greater tribal self-determination 
in energy-related leasing and agreements. The program is 
consistent with policies ensuring that tribal self-
determination and the Federal trusteeship are complementary, 
and that an Indian tribe that elects to pursue greater self-
determination does not do so at the expense of the trust 
relationship between the United States and the Indian tribe.
    Section 2605 authorizes and encourages actions by the Power 
Marketing Administration to assist tribal energy development. 
The Western Area Power Administration is authorized to make 
power allocations to meet the firming and reserve needs of 
Indian-owned energy projects and to acquire power generated by 
Indian tribes for firming and reserve needs, so long as the 
rates andterms are competitive. The Secretary of Energy is also 
required to complete a study that describes the use by Indian tribes of 
Federal power market allocations, the quantity of power allocated to 
tribes by Power Marketing Administrations and identification of 
barriers that impede tribal access to Federal power. The sum of 
$750,000 is authorized to be appropriated to carry out this section.
    Section 2606 authorizes a study on the feasibility of a 
demonstration project using wind energy generated by Indian 
tribes and hydropower generated by the Army Corps of Engineers 
on the Missouri River to supply firming power to WAPA. The sum 
of $1 million is authorized to be appropriated for this study.

Section 504. Four Corners transmission line project and electrification

    Section 504 makes the Dine Power Authority, a Navajo Nation 
enterprise, eligible for funding under this title for 
activities associated with the development of a transmission 
line from the Four Corners Area to southern Nevada and related 
power generation opportunities. This section also amends 
section 602 of Public Law 106-511 to extend the administration 
of the Navajo Electrification project through 2011.

Section 505. Energy efficiency in Federal housing

    Section 505 directs the Secretary of Housing and Urban 
Development to promote energy conservation and efficiency in 
Federal housing located on Indian land.

Section 506. Consultation with Indian tribes

    Section 506 requires the Secretary of the Interior and 
Secretary of Energy to involve and consult with Indian tribes 
in the implementation of this title.

                       TITLE VI--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

Section 601. Short title

    Section 601 is self-explanatory.

Section 602. Extension of indemnification authority

    The authorization period for indemnification provisions for 
NRC licensees and DOE contractors is extended for a period of 
twenty years.

Section 603. Maximum assessment

    Section 603 increases the maximum annual assessment under 
the standard deferred premium on NRC licensees from $10 million 
to $15 million, increases the overall cap from $63 million to 
$95.8 million, and adjusts these numbers for inflation in the 
future.

Section 604. Department of Energy liability limit

    Section 604 sets the total amount of indemnification for 
DOE contractors at $10 billion, and adjusts this number for 
inflation in the future.

Section 605. Incidents outside the United States

    This section increases the amount of indemnification for 
DOE contractors engaged in nuclear activities outside the 
United States from $100 million to $500 million.

Section 606. Reports

    Section 606 requires DOE and NRC to issue a report to 
Congress on the status of the Price-Anderson program by 
December 31, 2021.

Section 607. Inflation adjustment

    Section 607 requires the NRC to adjust for inflation the 
standard deferred premium for NRC licensees every five years.

Section 608. Treatment of modular reactors

    Section 608 allows NRC to consider a combination of small 
modular reactors at one site to be a single facility for 
purposes of Price-Anderson indemnification.

Section 609. Applicability

    Section 609 clarifies that the amendments made by sections 
603, 604, and 605 do not apply to a nuclear incident that 
occurs before the date of their enactment.

Section 610. Civil penalties

    Section 610 ends the automatic remission of civil penalties 
for nuclear safety violations by DOE contractors that are 
nonprofit institutions and establishes a limit on such civil 
penalties not to exceed the total fees paid within one year to 
the nonprofit institution.

                  Subtitle B--General Nuclear Matters

Section 621. Medical isotope production

    Section 621 provides for the NRC to license the export of 
highly enriched uranium for medical isotope production in 
Canada, Belgium, France, Germany and the Netherlands. The 
intent of the medical isotope provision is to ensure that the 
United States medical community has an adequate and reliable 
supply of isotopes for nuclear medicine. The medical isotope 
provision does not mitigate or restrict the NRCs authority to 
require that recipients of high enriched uranium (HEU) be 
actively working to convert to low enriched targets. Nor does 
the provision reduce any security measures implemented by the 
NRC which ensure the safe transport and storage of HEU. Section 
621 provides the NRC with more authority to add additional 
safeguards if it believes they are necessary.

Section 622. Safe disposal of greater-than-class C radioactive waste

    Section 622 requires the designation of an entity within 
the DOE to be responsible for the final disposal of Greater-
Than-Class C Radioactive Waste (GTCC). This section also 
requires the development of a comprehensive plan with 
alternatives for the disposal of GTCC. Before a final action is 
taken by the Secretary, a report is required to Congress 
describing all alternatives under consideration and await 
action by Congress.

Section 623. Prohibition on nuclear exports to countries that sponsor 
        terrorism

    Section 623 strengthens existing laws that contain 
prohibitions of nuclear exports to countries identified by the 
Secretary of State as engaging in state-sponsored terrorism.

Section 624. Decommissioning pilot program

    Section 624 establishes a pilot program to decommission and 
decontaminate the sodium-cooled fast breeder experimental test-
site reactor in Arkansas and authorizes appropriation of 
$16,000,000.

           Subtitle C--Next Generation Nuclear Plant Project

Section 661. Project establishment

    This section is self-explanatory.

Section 662. Project management

    Section 662 designates the Office of Nuclear Energy, 
Science and Technology as the project manager. The Secretary 
may also call upon the Office of Science to provide their 
expertise for the project. The Idaho National Laboratory (INL) 
is designated as the lead laboratory and directed to organize a 
consortium of industrial partners to participate in the 
project. The prototype plant will be built in Idaho at the INL. 
The project may utilize facilities at other national 
laboratories.

Section 663. Project organization

    Section 663 establishes the major project elements, the 
phases in which the project will be conducted, project 
requirements, international collaboration, and project review. 
The program will be completed in phases; the first phase will 
validate the technologies under the major project elements. The 
first phase will examine whether it is appropriate to produce 
electricity and hydrogen concurrently and begin initial design 
activities for a prototype nuclear power plant. The second 
phase of the project includes the competitive process for 
reactor and plant design, licenses to construct and operate 
from the NRC and general construction and operation. Project 
requirements include making full use of the expertise of the 
nuclear power industry, chemical processing industry and 
Generation IV International Forum partners. The Nuclear Energy 
Research Advisory Committee (NERAC) will review all project 
plans on an ongoing basis to ensure all scientific, technical, 
safety and program management issues receive proper attention. 
After a review of phase one activities, the NERAC will also 
make a recommendation to the Secretary to proceed to phase two 
of the project. The Secretary shall transmit any NGNP NERAC 
report to the Congress after reviewing it.

Section 664. Nuclear Regulatory Commission

    Section 664 sets forth that the NRC will have licensing and 
regulatory authority for any reactor authorized in this 
program. The NRC and DOE are also required to notify Congress 
of the preferred licensing strategy for NGNP. Requires the 
Secretary of the DOE to have ongoing interaction with the NRC 
throughout the duration of the project

Section 665. Project timelines and authorization of appropriations

    This section is self-explanatory.

                     TITLE VII--VEHICLES AND FUELS

                     Subtitle A--Existing Programs

Section 701. Use of alternative fuels by dual-fueled vehicles

    Section 701 amends current law to strengthen requirements 
that Federal vehicle fleets actually use alternative fuels in 
their alternative fuel capable vehicles.

Section 702. Alternative fuel use by light duty vehicles

    Section 702 sunsets the alternative fuel vehicle 
requirements for covered motor vehicle fleets under sections 
501, 507, and 508 of the Energy Policy Act of 1992 not later 
than 2015.

Section 703. Incremental cost allocation

    Section 703 makes a minor technical amendment to section 
303(c) of the Energy Policy Act of 1992.

Section 704. Alternative compliance

    Section 704 amends title V of the Energy Policy Act of 1992 
to allow covered fleet operators to apply for a waiver of the 
requirements of the Act. The amendment would provide 
flexibility to fleet operators and ease compliance with the 
fleet requirements for petroleum fuel use reductions.

Section 705. Report concerning compliance with alternative fueled 
        vehicle purchasing requirements

    Section 705 requires a report from the Secretary of Energy 
on purchasing requirements by February 15, 2006.

                   Subtitle B--Automobile Efficiency

Section 711. Authorization of appropriations for implementation and 
        enforcement of fuel economy standards

    Section 711 authorizes $2 million for each of fiscal years 
2006 through 2010 for the National Highway Traffic Safety 
Administration to carry out its obligations with respect to 
fuel economy standards.

                       Subtitle C--Miscellaneous

Section 721. Railroad efficiency

    Section 721 establishes a cost-shared, public-private 
research partnership to develop and demonstrate technologies 
that increase railroad locomotive fuel economy, reduce air 
emissions and lower operating costs. It authorizes $110 million 
over three years for the program.

Section 722. Conserve by bicycling program

    Section 722 establishes a program in the Department of 
Transportation to promote fuel conservation through greater use 
of bicycling as an alternative to motor vehicle use. It 
authorizes $6.2 million for the program.

Section 723. Reduction of engine idling of heavy-duty vehicles

    Section 723 establishes a program under the EPA to develop 
and deploy stationary and mobile technologies that will assist 
in reducing the amount of time large over-the-road trucks spend 
idling. The program is authorized to spend $49.5 million over 
three years to promote stationary idling technologies. The 
amendment provides for a 250 pound weight exemption for large 
trucks that make use of auxiliary power units in lieu of engine 
idling.

Section 724. Biodiesel engine testing project

    Section 724 requires the Secretary of Energy to initiate a 
project in partnership with the diesel engine diesel fuel 
injection system, and diesel vehicle manufacturers and diesel 
and biodiesel fuel providers to provide biodiesel testing in 
advanced diesel engine and fuel system technology. It 
authorizes $5 million for each of fiscal years 2006 through 
2008.

               Subtitle D--Federal and State Procurement

Section 731. Definitions

    Section 731 sets forth the definitions of terms used in 
this subtitle.

Section 732. Federal and State procurement of fuel cell vehicles and 
        hydrogen energy systems

    Section 732 sets forth the purposes of the section: to 
stimulate acceptance by the market of fuel cell vehicles and 
hydrogen energy systems and support development of technologies 
relating to fuel cell vehicles, public refueling stations, and 
hydrogen energy systems and to require the Federal Government 
to adopt those technologies as soon as practicable.
    This section also establishes a program for Federal leases 
and purchases of fuel cell technologies and authorizes a total 
of $105 million over fiscal years 2008 through 2010.

Section 733. Federal procurement of stationary, portable, and micro 
        fuel cells

    Section 733 sets for the purposes of the section which are 
to stimulate the acceptance by the market of these technologies 
and support the development of technologies related to 
stationary, portable and micro fuel cells.
    The section also establishes a program for Federal leases 
and purchases of stationary, portable and micro fuel cells and 
authorizes a total of $345 million over fiscal years 2006 
through 2010.

                          TITLE VIII--HYDROGEN

Section 801. Hydrogen research, development, and demonstration

    Section 801 provides a complete substitute for the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act 
of 1990 (42 U.S.C. 12401 et seq.), authorizes basic research, 
development and demonstration activities related to hydrogen 
energy, fuel cells and related infrastructure. The substitute 
establishes an interagency task force to advise the Secretary, 
provides for the transfer of critical hydrogen and fuel cell 
technologies to the private sector, provides for the 
development of safety codes and standards related to fuel cell 
vehicles and hydrogen energy systems, and requires a National 
Academy report.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Section 901. Short title

    Section 901 designates the title as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 
2003''.

Section 902. Goals

    Section 902 defines broad goals and requires the Secretary 
of Energy to publish specific goals with each annual budget 
submission.

Section 903. Definitions

    This section is self-explanatory.

                     Subtitle A--Energy Efficiency

Section 911. Energy efficiency

    This section sets authorization levels and is self-
explanatory.

Section 912. Next generation lighting initiative

    Section 912 authorizes a new initiative to develop advanced 
solid state lighting options through research, development, 
demonstration, and commercial application activities. A 
definition regarding the selection of an Industry Alliance to 
assist in updating roadmaps and assessing progress of the 
Initiative is provided within this section.

Section 913. National building performance initiative

    Section 913 authorizes the Director of Office of Science 
and Technology Policy (OSTP) to establish an interagency 
program to address energy conservation and R&D efforts to 
reduce energy use in buildings. An advisory committee is 
established to oversee creation and implementation of a plan, 
and requires annual progress reports.

Section 914. Secondary electric vehicle battery use program

    Section 914 authorizes a program to evaluate secondary use 
of electric vehicle batteries through research, development, 
demonstration, and commercial application activities.

Section 915. Energy efficiency science initiative

    Section 915 authorizes a research program administered by 
the Assistant Secretary responsible for energy conservation.

       Subtitle B--Distributed Energy and Electric Energy Systems

Section 921. Distributed energy and electric energy systems

    Section 921 provides authorization levels and is self-
explanatory.

Section 922. High power density industry program

    Section 922 authorizes the creation of a research and 
demonstration program for high power density facilities.

Section 923. Micro-cogeneration energy technology

    Section 923 authorizes grants to consortia to develop 
small-scale combined heat and power systems for residential 
applications.

Section 924. Distributed energy technology demonstration program

    Section 924 authorizes assistance to demonstration projects 
using distributed energy technologies in highly energy 
intensive commercial applications.

Section 925. Electric transmission and distribution programs

    Section 925 authorizes research, development and 
demonstration programs to ensure reliability, efficiency and 
environmental integrity of electrical transmission systems and 
requires a 5-year program plan to be completed within the first 
year. This section authorizes a Power Delivery Research 
Initiative focused on establishing test beds at national 
laboratories, universities, or in industry, to evaluate and 
demonstrate the technologies required to move high temperature 
superconductivity into commercial use. A Transmission and 
Distribution Grid Planning and Operations Initiative for 
research, development and demonstration of tools to plan, 
operate, and expand transmission and distribution grids in 
realistic market scenarios is authorized and this initiative 
shall use a distributed research center involving universities 
and national laboratories with a focus on transfer of useful 
technologies to industry.

                      Subtitle C--Renewable Energy

Section 931. Renewable energy

    Section 931 provides authorization levels and is self-
explanatory.

Section 932. Bioenergy programs

    Section 932 authorizes a broad program of research in 
biopower, biofuels and bioproducts, including technologies 
utilizing cellulosic feedstocks or enzyme-based processing.

Section 933. Concentrating solar power research program

    Section 933 authorizes a program of research on 
concentrating solar power research to establish technologies 
and economics of both electricity and hydrogen production. A 
report with recommendations for future research is required 
within 4 years.

Section 934. Hybrid solar lighting research and development program

    Section 934 authorizes a program of research on novel 
lighting systems that integrate sunlight and electrical 
lighting in complement to each other in common lighting 
fixtures for the purpose of increasing energy efficiency. A 
National Academy of Sciences report is required within 2 years.

Section 935. Miscellaneous projects

    Section 935 authorizes research and development in ocean 
energy, combining renewable and other energy sources, and 
hydrogen carrier fuels.

                       Subtitle D--Nuclear Energy

Section 941. Nuclear energy

    Section 941 provides authorization levels and is self-
explanatory.

Section 942. Nuclear energy research programs

    Section 942 authorizes the Nuclear Energy Research 
Initiative, Nuclear Energy Plant Optimization, Nuclear Power 
2010, Generation IV Nuclear Energy Systems, Reactor Production 
of Hydrogen, and Nuclear Infrastructure Support Programs.

Section 943. Advanced fuel cycle initiative

    Section 943 authorizes the Advanced Fuel Cycle Initiative 
to evaluate proliferation-resistant fuel recycling and 
transmutation technologies, which support evaluation of 
alternative national strategies for spent fuel management and 
Generation IV advanced reactor concepts. An annual progress 
report is required.

Section 944. University nuclear science and engineering support

    Section 944 authorizes fellowship and faculty assistance 
programs, maintains university research and training reactors, 
and encourages interactions between universities and national 
laboratories.

Section 945. Security of nuclear facilities

    Section 945 authorizes research and development on 
technologies for improving safety and security of reactors.

Section 946. Alternatives to industrial radioactive sources

    Section 946 authorizes research and development on 
alternatives to large industrial radioactive sources, including 
well-logging sources, that reduce safety, environmental, or 
proliferation risks. A survey and report to Congress are 
required of existing types of commercial sources, along with 
review of available disposal options for such sources and 
evaluation of the need for alternative future disposal options.

                       Subtitle E--Fossil Energy

Section 951. Fossil energy

    Section 951 provides authorization levels and is self-
explanatory.

Section 952. Oil and gas research programs

    Section 952 authorizes research programs for oil and gas 
technologies with applications including exploration and 
production, reservoir life and extension, heavy oil and shale, 
and related environmental research. The section also authorizes 
research on fuel cells and requires a report at two year 
intervals on estimates of oil and gas reserves, reserves 
growth, and undiscovered resources.

Section 953. Methane hydrate research

    Section 953 reauthorizes the Methane Hydrate Research and 
Development Act of 2000. It adds findings to the current Act, 
provides a new focus for ongoing activities in light of past 
recommendations of the National Research Council, requires a 
new study of the program by the National Research Council in 
2009, and authorizes appropriations for the program through 
fiscal year 2010.

Section 954. Research and development for coal mining technologies

    Section 954 authorizes research and development program on 
coal mining technologies. The research is to be guided by the 
Mining Industry of the Future program and relevant National 
Academy reports and is to include technologies to enable mining 
of coal with reduced contaminant levels.

Section 955. Coal and related technologies program

    Section 955 authorizes a broad research, development, 
demonstration and commercial application program for coal and 
power systems and requires the Secretary to identify goals for 
coal-based technologies.

Section 956. Carbon dioxide capture research and development

    Section 956 establishes a program of research and 
development aimed at developing carbon dioxide capture 
technologies for pulverized coal combustion units.

Section 957. Complex well technology testing facility

    Section 957 is self-explanatory.

                          Subtitle F--Science

Section 961. Science

    Section 961 establishes authorization levels for the Office 
of Science and authorizes separate funding for construction 
costs associated with the international burning plasma fusion 
research project known as ITER.

Section 962. United States participation in ITER

    Section 962 authorizes U.S. participation in the 
international burning plasma fusion research project known as 
ITER and requires the Secretary to submit a plan within 180 
days of enactment describing the design and implementation of 
international or national facilities for the testing of fusion 
materials and technologies.

Section 963. Support for science and energy facilities and 
        infrastructure

    Section 963 requires the development and implementation of 
a strategy for maintaining or building essential facilities and 
infrastructure primarily supporting programs at the Office of 
Science, the Office of Energy Efficiency and Renewable Energy, 
the Office of Fossil Energy, or the Office of Nuclear Energy, 
Science and Technology.

Section 964. Catalysis research program

    Section 964 authorizes a broad research and development 
program for catalysis science including use of precious metals 
and requires National Academy of Science review every 3 years.

Section 965. Hydrogen

    Section 965 authorizes a program of fundamental research 
and development in support of the hydrogen and fuel cell 
programs authorized under Title VIII of the Act.

Section 966. Solid state lighting

    Section 966 authorizes a program of fundamental research on 
advanced solid state lighting in support of the Next Generation 
Lighting Initiative carried out under Section 912.

Section 967. Advanced scientific computing for energy missions

    Section 967 authorizes a scientific computing research and 
development program, including activities related to applied 
mathematics, with the goal of supporting departmental missions 
and providing the computational, networking, and workforce 
resources required for world leadership in science.

Section 968. Genomes to life program

    Section 968 authorizes research and development in 
microbial and plant systems biology, protein science, and 
computational biology and authorizes construction of user 
facilities at national laboratories.

Section 969. Fission and fusion energy materials research program

    Section 969 authorizes a research and development program 
on material science issues presented by advanced fission 
reactors and Department's fusion program.

Section 970. Energy-water supply technologies program

    Section 970 authorizes a research and demonstration program 
to study energy-related issues associated with water resources 
and issues associated with sustaining water supplies for energy 
production. Program topics shall include arsenic removal, 
desalination, and energy and water sustainability. The arsenic 
removal program is to be run by the American Water Works 
Association Research Foundation for the Department. 
Desalination program is to follow the national Desalination and 
Water Purification Technology Roadmap in partnership with the 
U.S. Bureau of Reclamation. The sustainability program supports 
water modeling studies, on the level of major national river 
basins, to understand water usage patterns and the impact of 
energy production activities in these basins.

Section 971. Spallation neutron source

    Section 971 requires the development of an operational plan 
for the Spallation Neutron Source Facility that ensures the 
facility is employed to its full capability in support of the 
study of advanced materials, nanoscience, and other missions of 
the Department. The section authorizes funds for completion of 
construction of the facility, funds for operations, and 
additional funds to be available in the event that Department 
stockpiles of heavy water are insufficient to meet the needs of 
the facility.

                 Subtitle G--International Cooperation

Section 981. Western Hemisphere energy cooperation

    Section 981 authorizes a program to promote cooperation on 
energy issues with countries of the Western Hemisphere, 
including energy production, energy efficiency, and the 
development and transfer of technologies to world energy 
markets.

Section 982. Cooperation between United States and Israel

    Section 982 requires the Secretary of Energy to report to 
Congress on the 1996 ``Agreement between the Department of 
Energy of the United States and the Ministry of Energy and 
Infrastructure of Israel Concerning Energy Cooperation.''

                TITLE X--DEPARTMENT OF ENERGY MANAGEMENT

Section 1001. Availability of funds

    This section provides that all funding authorized to be 
appropriated under this Act or by amendments made by this Act 
shall remain available until expended.

Section 1002. Cost sharing

    This section establishes Department-wide cost-sharing 
requirements for all research, development, demonstration, and 
commercial application activities initiated after the date of 
enactment of this Act. These requirements will take the place 
of the current patchwork of cost-sharing requirements that have 
been contained in previous authorization and appropriations 
laws. The cost-sharing requirements will generally require a 20 
percent cost share for research and development activities and 
a 50 percent cost share for demonstration and commercial 
application activities, with an exemption for basic or 
fundamental research and development and the ability for the 
Secretary to waive cost-sharing requirements in appropriate 
situations. The section specifies how in-kind contributions are 
to be treated for purposes of calculating a cost-sharing 
contribution. The section also prohibits repayment or 
``recoupment'' provisions from being made part of cost-shared 
research, development, demonstration, and commercial 
application activities in the future. Such provisions in the 
past have been difficult to administer, have yielded little 
funding back to the Department, and have been a barrier to 
attracting the most competent external organizations to 
participate in Departmental cost-shared research, development, 
and demonstration activities.

Section 1003. Merit review of proposals

    Section 1003 requires merit review of proposals for the 
award of any funds authorized under this Act or by amendments 
made by this Act.

Section 1004. External technical review of Departmental programs

    Section 1004 requires advisory boards for Department 
programs and authorizes the Secretary to use the National 
Academy of Sciences to establish such boards and to conduct 
other reviews and assessments of programs and goals on at least 
5-year intervals.

Section 1005. Improved technology transfer of energy technologies

    Section 1005 requires the Secretary to appoint a Technology 
Transfer Coordinator, establishes a Technology Transfer Working 
Group with representation from each of the national 
laboratories and single-purpose research facilities, and 
establishes a Technology Commercialization Fund to be used to 
provide matching funds to private partners to promote promising 
technologies.

Section 1006. Technology infrastructure program

    Section 1006 requires the Secretary to establish a pilot 
program to encourage the creation of technology clusters and 
improve the ability of the national laboratories and single-
purpose research facilities to leverage and benefit from 
commercial research.

Section 1007. Small business advocacy and assistance

    Section 1007 requires each National Laboratory, and enables 
each single-purpose research facility, to designate a small 
business advocate to facilitate participation of small 
businesses in procurement and research opportunities.

Section 1008. Outreach

    Section 1008 requires each program authorized under the Act 
to include an outreach component to provide appropriate 
information to manufacturers, consumers, institutions of higher 
education, facility planners and managers, State and local 
governments, and other entities.

Section 1009. Relationship to other laws

    Section 1009 clarifies that, except as otherwise provided 
in this Act or the amendments made by this Act, DOE research, 
development, demonstration, and commercial application programs 
should continue to be governed by the applicable provisions of 
the existing statutes that provide the Department with its 
authorities for research, development, demonstration, and 
commercial application. The five leading such statutes are 
specifically named in this section.

Section 1010. Improved coordination and management of civilian science 
        and technology

    Section 1010 amends the Department of Energy Organization 
Act to establish an additional Under Secretary designated as 
the Under Secretary for Science and Energy, and an Assistant 
Secretary for Science to head the Office of Science. An 
additional Assistant Secretary position is created, accompanied 
by a sense of Congress that leadership in nuclear energy shall 
be at the Assistant Secretary level. Sections 5314 and 5315 of 
title 5, United States Code, are amended to show 3, instead of 
2, Under Secretaries of Energy and 8, instead of 6, Assistant 
Secretaries of Energy.

Section 1011. Other transactions authority

    Section 1011 amends the Department of Energy Organization 
Act (42 U.S.C. 7256) to allow transactions by the Secretary of 
Energy to further research, development, or demonstrations and 
exempts them from provisions of section 9 of the Federal 
Nonnuclear Energy Research and Development Act of 1974 (42 
U.S.C. 5908). These other transactions can only be entered if 
standard contract, grant or cooperative agreements are not 
feasible or appropriate. The amendment also allows the 
Secretary to protect from disclosure certain business 
information for up to 5 years and requires that the Secretary 
develop guidelines within 3 months for using the other 
transactions mechanism.

Section 1012. Prizes for achievement in grand challenges of science and 
        technology

    Section 1012 authorizes cash prizes in recognition of 
break-through achievements in research, development, 
demonstration, and commercial application that have the 
potential for application to the performance of the mission of 
the Department. The Committee anticipates that the DOE will use 
such authority to overcome grand challenges in energy research 
and development similar in complexity to the Defense Advanced 
Research Projects Agency's ``Grand Challenge'' for autonomous 
robot ground vehicles.

Section 1013. Technical corrections

    Section 1013 updates and makes technical corrections to the 
Act of July 7, 1960, the Federal Nonnuclear Energy Research and 
Development Act of 1974, the Stevenson-Wydler Technology 
Innovation Act of 1980, and the Department of Energy 
Organization Act.

                    TITLE XI--PERSONNEL AND TRAINING

Section 1101. Workforce trends and traineeship grants

    Section 1101 requires the DOE, in consultation with the 
Department of Labor (DOL), to monitor workforce trends in the 
energy industry and report to Congress. It authorizes the DOE, 
in consultation with the DOL, to establish traineeship grants 
to address shortages of trained personnel.

Section 1102. Energy research fellowships

    Section 1102 authorizes the Secretary of Energy to 
establish fellowships for postdoctoral and senior researchers 
in energy research and development fields. The fellowships are 
intended to be different in character from those currently 
offered through project funding. The postdoctoral fellowship is 
to be awarded to individuals, based on their promise as 
researchers, and is to be portable to the institution of higher 
education of each individual's choice. The senior fellowship is 
also to be awarded based on the track record of the individual, 
and not on the basis of a particular project proposal. The 
intention is to provide a mechanism in the DOE similar to the 
IBM Fellows program and similar programs in industry, which 
identify and give greater autonomy in selection of research 
topics to the most outstanding researchers

Section 1103. Educational programs in science and mathematics

    Section 1103 amends the Department of Energy Science 
Education Enhancement Act (42 U.S.C. 7381a) to authorize the 
DOE to support competitive science and mathematics events and 
professional development for K-12 mathematics and science 
teachers.

Section 1104. Training guidelines for electric energy industry 
        personnel

    Section 1003 requires the Secretary of Labor, in 
consultation with the Secretary of Energy, to develop, jointly 
with the electric industry and recognized employee 
representatives, model personnel training guidelines to support 
electric system reliability and safety.

Section 1105. National Center on Energy Management and Building 
        Technologies

    Section 1105 requires the Secretary of Energy to support 
the establishment of a National Center on Energy Management and 
Building Technologies, to carry out research, education, and 
training activities to facilitate the improvement of energy 
efficiency and indoor air quality in industrial, commercial, 
and residential buildings.

Section 1106. Improved Access to energy-related scientific and 
        technical careers

    Section 1106 requires the Director of each National 
Laboratory, and, at the discretion of the Secretary of Energy, 
each science facility operated by the Department, to take 
actions to increase the participation of historically Black 
colleges or universities, Hispanic-serving institutions, or 
tribal colleges in activities that improve these institutions' 
ability to train students in scientific and technical careers.

Section 1107. National Power Plant Operations Technology and Education 
        Center

    Section 1107 requires the Secretary of Energy to support 
the establishment of a national training center to address the 
need for training and educating certified operators for 
electric power generation plants.

                         TITLE XII--ELECTRICITY

Section 1201. Short title

    Section 1201 is self-explanatory.

                   Subtitle A--Reliability Standards

Section 1211. Electric reliability standards

    Section 1211 changes our current voluntary rules system to 
a mandatory rules system under an Electricity Reliability 
Organization (ERO). This section grants ERO, approved by FERC, 
the power to establish mandatory rules for operation of the 
transmission grid and authority to penalize anyone who violates 
those standards.

         Subtitle B--Transmission Infrastructure Modernization

Section 1221. Siting of interstate electric transmission facilities

    Section 1221 directs DOE to conduct a study of transmission 
congestion within 1 year of enactment (and triennially 
thereafter). This section authorizes the Secretary of Energy to 
designate one or more geographic areas as national interest 
electric transmission corridors. This section provides limited 
federal backstop siting authority (eminent domain) for electric 
transmission lines in areas designated by the Secretary of 
Energy as national interest transmission corridors. This 
section provides for just compensation for any rights-of-way 
acquired by eminent domain.
    Section 1221 establishes DOE as the lead agency for setting 
schedules and coordinating Federal authorizations required in 
order to site a transmission facility. This section designates 
the President as the arbitrator for any delays or denials of 
Federal permits. This section authorizes States to enter into 
interstate compacts for the purpose of establishing regional 
transmission siting agencies with authority to site 
transmission facilities.

Section 1222. Third-party finance

    Section 1222 authorizes the Western Area Power 
Administration (WAPA) and the Southwestern Power Administration 
(SWPA) to enter into public-private financial arrangements 
(third-party finance) to build or upgrade transmission 
facilities if certain criteria are met.

Section 1223. Advanced transmission technologies

    Section 1223 directs FERC to encourage the deployment of 
advanced transmission technologies, including: high-temperature 
lines; underground cables; advanced conductor technology; high-
capacity ceramic electric wire, connectors and insulators; 
optimized transmission line configurations; and modular 
equipment. The Committee is aware that the DOE has conducted 
one or more studies on high temperature, low sag technologies, 
the results of which the Committee would be interested in 
receiving from the Department as soon as practicable.

Section 1224. Advanced power system technology incentive program

    Section 1224 authorizes the Secretary of Energy to 
establish an Advanced Power System Technology Incentive Program 
to support deployment of certain advanced power system 
technologies like fuel cells, turbines, or hybrid power systems 
or power storage systems to generate or store electric energy.

            Subtitle C--Transmission Operation Improvements

Section 1231. Open nondiscriminatory access

    Section 1231 amends the FPA to authorize FERC to require 
unregulated transmitting utilities to provide open access to 
their transmission systems at rates that are comparable to 
those that the unregulated transmitting utility charges itself 
and on terms and conditions that are comparable to those the 
utility charges itself that are not unduly discriminatory or 
preferential. Small unregulated transmitting utilities, such as 
distribution co-ops, as well as unregulated transmitting 
utilities that do not own or operate significant transmission 
facilities are exempt from this section.

Section 1232. Regional Transmission Organizations

    Section 1232 amends the FPA to authorize FERC to encourage 
and approve the voluntary formation of Transmission 
Organizations.
    FERC may not condition any order issued under the FPA on a 
requirement that a transmitting utility transfer operational 
control of jurisdictional facilities to a Transmission 
Organization. The new language added to subsection (b) of 
section 217 of the Federal Power Act by this section is 
intended to prohibit FERC from requiring, or imposing as a 
condition, that a transmitting utility transfer operational 
control of jurisdictional facilities to a Transmission 
Organization. It is not intended to limit FERC authority with 
respect to transmitting utilities that are participating in 
Transmission Organizations.
    Transmission Organizations must report annually to FERC to 
demonstrate their cost effectiveness.

Section 1233. Federal utility participation in Transmission 
        Organizations

    Section 1233 authorizes the appropriate Federal regulatory 
authority (the Secretary of Energy, the Administrator of a PMA 
or the Board of Directors of TVA) to 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.

Section 1234. Standard market design

    Section 1234 terminates FERC's Proposed Rulemaking on 
Standard Market Design.

Section 1235. Native load service obligation

    Section 1235 entitles load-serving entities to exercise 
firm transmission rights or equivalent tradable or financial 
transmission rights to the extent needed to meet their service 
obligation. This section does not affect the Commission's 
authority under sections 205 and 206 to ensure that rates are 
just and reasonable and not unduly discriminatory or 
preferential. With respect to the Midwest ISO, nothing in 
Section 218 is intended to guarantee that an entity shall be: 
(1) entitled to a particular financial transmission right 
allocation; (2) held harmless from applicable congestion 
charges; or (3) exempt from an applicable congestion management 
methodology within the Midwest ISO. The language of subsection 
(c) is intended to provide the Commission with flexibility in 
taking into account the policies, as opposed to the strict 
letter of subsections (b) (1), (b) (2), and (b)(3) as well as 
other considerations reflected in the Act, such as reliability 
and system-wide customer costs, in addressing allocation 
methodology changes proposed by the Midwest ISO.

Section 1236. Protection of transmission contracts in the Pacific 
        Northwest

    Section 1236 protects firm transmission rights of entities 
in the Pacific Northwest by allowing only voluntary conversion 
of firm to financial transmission rights.

                  Subtitle D--Tranmission Rate Reform

Section 1241. Transmission infrastructure investment

    Section 1241 directs FERC to issue rules on transmission 
pricing policies that provide a return on equity that attracts 
capital for investment in grid improvements and advanced 
transmission technologies. This section directs FERC to allow 
for the recovery of all prudently incurred costs necessary to 
comply with reliability standards and Federal back-stop siting 
needs.

Section 1242. Funding new interconnection and transmission upgrades

    Section 1242 authorizes FERC to approve a participant 
funding cost allocation plan, without regard to whether the 
applicant is in a Transmission Organization, as long as it 
results in just and reasonable rates.

                    Subtitle E--Amendments to PURPA

Section 1251. Net metering and additional standards

    Section 1251 amends PURPA section 111(d) to require States 
to consider implementing standards in the following areas:
    (1) net metering (a requirement that utilities make net 
metering, regarding on-site energy production, measurement and 
billing, available to any electric consumer);
    (2) fuel diversity (a requirement that utilities reduce 
dependency on a single fuel source and increase fuel diversity, 
including the use of renewables); and
    (3) fossil fuel generation efficiency (a requirement that 
utilities implement 10 year plans to increase fossil fuel 
efficiency).

Section 1252. Smart metering

    Section 1252 amends PURPA section 111(d) to require States 
to consider implementing smart metering standards that require 
electric utilities to offer time based rate schedules (such as 
time-of-use pricing, critical-peak pricing, and real-time 
pricing) that enable customers to manage energy use and cost 
through advanced metering and communications technology.

Section 1253. Cogeneration and small power production purchase and sale 
        requirements

    Section 1253 amends PURPA section 210 by ensuring that 
qualifying facilities (QFs) meet specific criteria to be 
eligible for mandatory purchase and sale benefits and that such 
benefits terminate when a competitive wholesale market exists. 
This section sets forth new criteria for future QFs to ensure 
that they are fundamentally designed to support commercial or 
industrial processes.

Section 1254. Interconnection

    Section 1254 amends PURPA section 111(d) to require States 
to consider best practices for promoting interconnection for 
distributed generation.

 Subtitle F--Market Transparency, Enforcement, and Consumer Protection

Section 1261. Market transparency rules

    Section 1261 authorizes FERC to establish an electronic 
information system to provide information about the 
availability and price of wholesale electric energy and 
transmission services. This section requires FERC to exempt 
from disclosure information the disclosure of which would be 
detrimental to the operation of an effective market or which 
would jeopardize system security. This section provides that 
this section shall not affect the CFTC's exclusive jurisdiction 
with respect to commodities under the Commodity Exchange Act. 
This section provides that FERC shall not compete with private 
sector publishers of energy prices.

Section 1262. False Statements

    Section 1262 amends the FPA to prohibit the filing of false 
information regarding price of wholesale electricity and 
availability of transmission capacity.

Section 1263. Market manipulation

    Section 1263 amends the FPA to ban 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 connection with the purchase or sale of 
electricity or FERC jurisdictional transmission services in 
violation of FERC rules.

Section 1264. Enforcement

    Section 1264 amends FPA section 306 to add an electric 
utility to the list of persons that may file a complaint and 
adds a transmitting utility to the list of persons against 
which a complaint may be filed.
    Section 1264 mends FPA section 313 to include any electric 
utility in the procedures for review of Commission orders.
    Section 1264 amends FPA section 307 to make electric 
utilities and transmitting utilities subject to FERC 
investigations and subject to FERC authority to obtain 
information regarding wholesale sales of electricity and 
transmission in interstate commerce.
    Section 1264 amends FPA section 316 by increasing criminal 
penalties for FPA violations to $1 million; 5 years 
imprisonment; and $25,000 per day fines.
    Section 1264 amends FPA section 316A by repealing exemption 
from criminal penalties violations of sections 211-214.
    Section 1264 amends FPA section 316A by extending civil 
penalties to any violation of Part II of the FPA and increases 
civil penalties to $1 million per day.

Section 1265. Refund effective date

    Section 1265 amends FPA section 206 by making the refund 
effective date the date of the filing instead of 60 days later.

Section 1266. Refund authority

    Section 1266 amends FPA section 206(f) to provide that if 
an entity described in section 201(f) voluntarily makes a 
short-term (i.e., less than 31 days) sale of electricity that 
violates Commission rules, the entity shall be subject to FERC 
refund authority. The refund authority would not apply to 
municipal or Federal utilities that sell less than 8 million 
MWh of electricity per year or any electric co-ops. Special 
provisions are included for the Bonneville Power Administration 
(refund authority is limited to sales at unjust and 
unreasonable rates, and only for BPA sales that were higher 
than the highest just and reasonable rate charged by other 
sellers in the same geographic market). With respect to TVA and 
the PMAs, FERC's authority is limited to ordering refunds to 
achieve just and reasonable rates.

Section 1267. Consumer privacy and unfair trade practices

    Section 1267 requires the FTC to issue rules to protect 
electric consumers from disclosure of consumer information 
obtained in connection with the sale or delivery of 
electricity. This section requires FTC to issue rules 
prohibiting slamming (switching customers' service without 
consent) and cramming (charging customers for services not 
requested).

Section 1268. Office of Consumer Advocacy

    Section 1268 establishes within DOE an Office of Consumer 
Advocacy to represent energy customers on matters regarding 
rates or services of public utilities and natural gas companies 
at FERC hearings and in civil proceedings.

Section 1269. Authority of court to prohibit persons from serving as 
        officers, directors, and energy traders

    Section 1269 allows courts to prevent anyone who 
manipulates markets from serving as officers or directors of 
electric utility companies or engaging in the business of 
selling or purchasing electric or transmission services 
jurisdictional to FERC.

Section 1270. Relief for extraordinary violations

    Section 1270 gives FERC exclusive jurisdiction to determine 
whether termination payments required by certain Western 
Interconnection contracts are unjust and unreasonable.

                Subtitle G--PUHCA Repeal--Merger Reform

Section 1271. Short Title

    Section 1271 is self-explanatory.

Section 1272. Definitions

    Section 1272 is self-explanatory.

Section 1273. Repeal of the Public Utility Holding Company Act of 1935

    Section 1273 repeals the Public Utility Holding Company Act 
of 1935 (PUHCA).

Section 1274. Federal access to books and records

    Section 1274 gives FERC authority to require that each 
holding company, associate company and affiliate company make 
available to FERC books, accounts and records that FERC 
determines are relevant to costs incurred by a public utility 
or natural gas company that is an associate of a holding 
company and that are necessary and appropriate to protect 
utility customers with respect to jurisdictional rates.

Section 1275. State access to books and records

    Section 1275 provides that upon request of a State 
commission having jurisdiction to regulate a public utility 
company in a holding company system, and under conditions to 
ensure confidentiality of trade secrets or sensitive commercial 
information, a holding company, associate company or affiliate 
company is to make available to the State commission books, 
accounts and records that have been identified in a proceeding 
of the State commission and that the State commission 
determines are relevant to costs incurred by such public 
utility company and that are necessary and appropriate to 
protect utility customers with respect to jurisdictional rates. 
States can obtain books and records under state law or other 
applicable Federal law.

Section 1276. Exemption authority

    Section 1276 provides that not later than 90 days after the 
date of enactment, FERC is to promulgate a final rule exempting 
from the Federal books and records requirement any person that 
is a holding company solely with respect to a qualifying 
facility, exempt wholesale generator, or foreign utility 
companies. FERC can exempt other records for any class of 
transactions that it finds are not relevant to jurisdictional 
rates.

Section 1277. Affiliate transactions

    Section 1277 preserves the authority of FERC or a State 
commission to determine if a jurisdictional public utility 
company can recover in rates costs incurred through 
transactions with affiliates.

Section 1278. Applicability

    Section 1278 provides that PUHCA provisions do not apply to 
the U.S. Government, any state or political subdivision, any 
foreign government authority not operating in the United 
States, or any agency, authority or instrumentality of any of 
the above.

Section 1279. Effect on other regulations

    Section 1279 preserves authorities of FERC or State 
commissions under other applicable law.

Section 1280. Enforcement

    Section 1280 authorizes FERC to use its enforcement 
authorities under the FPA to enforce this subtitle.

Section 1281. Savings provisions

    Section 1281 permits continuation of activities authorized 
as of the date of enactment and preserves FERC authority under 
the FPA and the Natural Gas Act.

Section 1282. Implementation

    Section 1282 authorizes FERC to promulgate regulations to 
implement this subtitle and to submit recommendations to 
Congress for technical and conforming amendments within 4 
months of enactment.

Section 1283. Transfer of resources

    Section 1283 provides that the Securities and Exchange 
Commission is to transfer books and records to FERC.

Section 1284. Effective date

    Section 1284 provides that this subtitle takes effect 6 
months after the date of enactment.

Section 1285. Service allocation

    Section 1285 allows FERC to allocate non-power services 
among associate companies in a holding company for the 
protection of investors and consumers.

Section 1286. Authorization of appropriations

    Section 1286 authorizes such funds as may be necessary to 
carry out this subtitle.

Section 1287. Conforming amendments to the Federal Power Act

    Section 1287 repeals FPA section 318, dealing with 
conflicts in jurisdiction between PUHCA and the FPA.

Section 1288. Merger review reform

    Section 1288 expands FERC's merger review authority and 
increases transaction value thresholds from $50,000 to $10 
million. Section 1288 provides FERC jurisdiction over 
acquisitions of generation facilities used in interstate 
commerce and acquisitions by public-utility companies of gas 
utility companies. Section 1288 requires FERC to consider 
factors such as effects on markets, rates, and regulation when 
evaluating whether a transaction is consistent with the public 
interest. Section 1288 also requires FERC to make an additional 
finding that a transaction will not result in cross-
subsidizations of associate companies to the detriment of the 
utility.

                        Subtitle H--Definitions

Section 1291. Definitions

    Section 1291 clarifies the FPA definition of electric 
utility to include any entity described in section 201(f) of 
the Federal Power Act (FPA) that sells electric energy and adds 
Federal power marketing agencies to the definition.
    Section 1291 adds to the FPA a new definition of 
transmitting utility. Under the new definition, a transmitting 
utility is an entity, including an entity described in FPA 
section 201(f), that owns, operates or controls facilities used 
for the transmission of electric energy in interstate commerce 
or for the sale of electric energy at wholesale. This 
definition includes Transmission Organizations.
    Section 1291 adds to the FPA a new definition for electric 
cooperative. Under the new definition, an electric cooperative 
is a cooperatively owned electric utility.
    Section 1291 adds to the FPA a new definition for RTO. 
Under the new definition, an RTO is an entity of sufficient 
regional scope approved by FERC to exercise operational/
functional control of interstate transmission facilities and to 
assure nondiscriminatory access to such facilities.
    Section 1291 adds to the FPA a new definition for ISO. 
Under the new definition, an ISO is an entity approved by FERC 
to exercise operational/functional control of interstate 
transmission facilities and to assure nondiscriminatory access 
to such facilities.
    Section 1291 adds to the FPA a new definition for 
Transmission Organization. Under the new definition, a 
Transmission Organization is an RTO, ISO, independent 
transmission provider or other transmission organization 
finally approved by FERC for the operation of transmission 
facilities.
    Section 1291 amends FPA section 201(f) to include electric 
cooperatives that are either financed under the Rural 
Electrification Act or that sell less than 4 million MWh of 
electricity per year.

            Subtitle I--Technical and Conforming Amendments

Section 1295. Conforming amendments

    Section 1295 amends technical errors in the Federal Power 
Act.

                          TITLE XIII--STUDIES

    Title XIII requires studies on energy and water saving 
measures in congressional buildings (Section 1301), increased 
hydroelectric generation at existing Federal facilities 
(Section 1302), the Alaskan natural gas pipeline (Section 
1303), renewable energy on Federal land (Section 1304), coalbed 
methane (Section 1305), backup fuel capabilities (Section 
1306), energy rights-of-way on tribal lands to be conducted 
jointly by DOE and DOI (Section 1307), Energy Policy Act of 
1992 programs (Section 1308), the feasibility and effects of 
reducing automobile fuel use (Section 1309), hybrid distributed 
power systems (Section 1310), the mobility of scientific and 
technical personnel (Section 1311), energy technologies 
(Section 1312), research and development program evaluation 
methodologies (Section 1313), transmission system monitoring 
(Section 1314), competition in the wholesale and retail markets 
for electric energy (Section 1315), the benefits of economic 
dispatch (Section 1316), rapid electrical grid restoration 
(Section 1317), cogeneration (Section 1318), petroleum and 
natural gas storage inventory (Section 1319), natural gas 
supply shortage (Section 1320), split-estate Federal oil and 
gas leasing and development practices (Section 1321), 
resolution of Federal resource development conflicts in the 
Powder River Basin (Section 1322), energy efficiency standards 
(Section 1323), telecommuting (Section 1324), oil bypass 
filtration technology (Section 1325), total integrated thermal 
systems (Section 1326), University collaboration (Section 
1327), and reliability and consumer protection (Section 1328).

           TITLE XIV--INCENTIVES FOR INNOVATIVE TECHNOLOGIES

Section 1401. Definitions

    Section 1401 is self-explanatory

Section 1402. Terms and conditions

    Section 1402 provides general terms and conditions for loan 
guarantees made by the Secretary. The cost of a loan guarantee 
must be appropriated or paid by the borrower. The guarantee 
cannot exceed 80% of the project cost, and the term of the 
obligation must require full repayment within the lesser of 30 
years or 90 percent of the projected useful life of the asset. 
The section provides specifics in the event of default by the 
borrower. The section allows for the Secretary to make payments 
on behalf of the borrower to avoid default, if appropriations 
are provided for that specific purpose. The section also 
provides for the collection of administrative fees. The full 
faith and credit of the United States is pledged to the payment 
of all guarantees.

Section 1403. Eligible projects

    Subsection (a) contains broad criteria that any project 
must meet to receive a loan guarantee under this title. 
Subsection (b) lists the categories of eligible projects. 
Projects must fall within the parameters of both subsections to 
be eligible for a guarantee.
    Subsection (c) identifies specific gasification projects 
that are eligible for loan guarantees.
    Subsection (d) provides emission levels that eligible 
gasification projects must meet.
    Subsection (e) clarifies that projects that receive tax 
credits are not disqualified from also receiving a loan 
guarantee under this title.

Section 1404. Authorization of Appropriations

    Section 1404 is self-explanatory.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S.--------. The bill contains a variety of 
regulatory measures that impose Government-established 
standards on private individuals and businesses in establishing 
efficiency standards and similar programs. There may be some 
economic costs associated with certain of the requirements. 
There are also voluntary programs, such as the authorization 
for Tribal governments to enter into agreements that would 
allow them to assume full responsibility for development of 
energy resources. Compliance with those agreements will require 
commitments of resources and the establishment of a regulatory 
program by the Tribes. Various grant and other assistance 
programs will require submission of documentation or plans as a 
condition for the assistance and the amendments to the Federal 
Power Act may result in information being made available in 
different modes or times than at present, especially under 
market transparency provisions. The Committee believes that the 
effects are not undue and are reasonable in light of the 
benefits of the programs.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S.__, as ordered reported, with the exception of 
the various studies required by the legislation and the 
reporting associated with grant and financial assistance 
programs, the Tribal energy development agreement 
implementation, or the requirements associated with amendments 
to the Federal Power Act and the Public Utility Regulatory 
Purposes Act of 1978.

                        Executive Communications

    Executive views on the original bill have not been 
received.

                  ADDITIONAL VIEWS OF SENATOR BINGAMAN

    Bob Galvin, the former Chairman of Motorola, once said that 
``there are certain things that a country needs to set out to 
do on purpose.'' I believe that establishing a good energy 
policy is one of them. A policy, by definition, is a plan, a 
reasoned course of action. Good policy does not happen by 
accident. It requires purposeful forethought and planning. It 
must be built on sound principles.
    To my mind, a good energy policy must be anchored on four 
fundamental principles.
    First, it must increase our supplies of energy from all 
available sources--oil, gas, coal, nuclear, and renewables. It 
must ensure that energy resources that have not yet been 
developed as extensively as they could be, such as renewable 
energy, are given the assistance and the incentives they need 
to make their maximum contribution.
    Second, it must ensure that the energy we do produce is 
transported and consumed as efficiently as possible. It must 
ensure that adequate investments are made in the critical 
infrastructure of ports and pipelines, transmission lines, and 
other modes of moving energy from one place to another. It must 
also ensure that consumers are not hurt by price spikes and 
other problems caused by bottlenecks in the supply system. And, 
importantly, it must ensure that energy is not wasted when it 
reaches its point of end use.
    Third, good energy policy must reduce the impact of energy 
production and consumption on the environment. We need to 
develop domestic energy resources, but we must do so without 
unnecessary harm and degradation to the environment. And we 
need to begin to address the environmental effects of energy 
use, as well as energy production. 98 percent of the carbon 
dioxide produced in the United States is associated somehow 
with energy production and use. We can no longer afford an 
energy policy that does not take into account environmental and 
climate impact, any more than we can afford to have a climate 
policy that ignores economic impacts.
    Fourth and finally, sound energy policy requires energy 
markets that are transparent and fair to consumers. Energy 
markets are not inherently free markets. Yet we have 
increasingly come to rely on market forces and signals to set 
energy prices and shape our energy choices. When competitive 
energy markets work fairly, everyone in the energy chain from 
producer to consumer benefits. When they do not, as in 
California and the West Coast electricity crisis, great 
economic harm can be done. So we need to make sure that our 
energy markets are transparent and fair to consumers.
    The Committee bill, on balance, meets these four tests. It 
encourages the production of both traditional and new energy 
resources through research and development, financial 
incentives, and regulatory reforms. It facilitates both the 
development of new energy infrastructure and improvements in 
efficiency. It avoids rolling back environmental protections. 
And it increases consumer protections by making energy markets 
more transparent and imposing sanctions on those who try to 
manipulate those markets.
    The bill is not perfect. It fails to include major 
initiatives that I think it should contain. It does not contain 
a renewable portfolio standard designed to increase the 
percentage of our electricity that is produced from renewable 
energy. It does not increase the corporate average fuel economy 
standards of our cars and trucks, or even close the so-called 
``SUV'' loophole. It does little to respond to the growing 
challenge of global warming.
    The Committee bill also contains several provisions it 
should not. Chief among them is the hydroelectric relicensing 
provision. Although it is a substantial improvement over 
earlier proposals, it is still troubling. It creates a tilted 
playing field that places the interests of dam operators over 
those of states, Indian tribes, and recreational users. And it 
creates a ``trial-type'' appeal process for resolving licensing 
disputes that will create substantial new delays of Dickensian 
proportions.
    I hope that the Senate may yet correct the deficiencies 
that remain and resist amendments that would undermine the 
principles I have outlined. But, even as it stands, the 
benefits of the bill outweigh its deficiencies, and I am 
pleased to support it and recommend it to my colleagues.
    Good energy legislation, like all good legislation, is the 
product of consensus, of striking a balance, of finding a 
compromise, between disparate and often discordant ideas. The 
quality of the product depends upon the quality of the process 
that is used to produce it. The quality of this bill owes much 
to Chairman's judicious leadership, his patience, his openness 
to new ideas, and his determined effort to reach a bipartisan 
consensus, for which he is to be commended.
                                                    Jeff Bingman.  
                        Changes in Existing Law

    In compliance with paragraph 12 of Rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the original bill, as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                           TABLE OF CONTENTS

                                                                   Page
1. National Energy Conservation Policy Act, Public Law 95-619, as 
  Amended (42 U.S.C. 8201 et seq.)...............................    62
2. Legislative Branch Appropriations Act, 1999, Public Law 105-
  275 (2. U.S.C. 1815)...........................................    69
3. Energy Conservation and Production Act, Public Law 94-385, as 
  Amended (42 U.S.C. 6801 et seq.)...............................    70
4. Solid Waste Disposal Act, Public Law 89-272, as Amended (42 
  U.S.C. 6901 et seq.)...........................................    71
5. Energy Policy and Conservation Act, Public Law 94-163, as 
  Amended (42 U.S.C. 6201 et seq.)...............................    73
6. United States Housing Act of 1937, Act of September 1, 1937, 
  Chapter 896, as Amended (42 U.S.C. 1437 et seq.)...............   104
7. Cranston-Gonzalez National Affordable Housing Act, Public Law 
  101-625, as Amended (42 U.S.C. 12701 et seq.)..................   105
8. Energy Policy Act of 1992, Public Law 102-486, as Amended (42 
  U.S.C. 13211 et seq.)..........................................   106
9. Farm Security and Rural Investment Act of 2002, Public Law 
  107-171, (7 U.S.C. 8108(a)(3)(A))..............................   131
10. Geothermal Steam Act of 1970, Public Law 91-581, as Amended 
  (30 U.S.C. 1001 et seq.).......................................   131
11. Federal Power Act, Act of June 10, 1920, Chapter 285, as 
  Amended (16 U.S.C. 791A-825R)..................................   145
12. Mineral Leasing Act, Act of February 25, 1920, as Amended (30 
  U.S.C. 181 et seq.)............................................   175
13. Appropriations for the Department of the Interior and Related 
  Agencies for the Fiscal Year Ending September 30, 1981, Public 
  Law 96-514.....................................................   178
14. National Petroleum Reserve in Alaska, Public Law 94-258 as 
  Amended Through P.L. 108-68, June 18, 2003.....................   180
15. Natural Gas Act, Act of June 21, 1938, Chapter 556, as 
  Amended (15 U.S.C. 717-717W)...................................   186
16. Natural Gas Policy Act of 1978, Public Law 95-621............   192
17. Coastal Zone Management Act of 1972, Public Law 92-583, 86 
  Stat. 1280, as Amended.........................................   193
18. Public Law 106-511, 114 Stat. 2376...........................   194
19. The Native American Housing and Self-Determination Act of 
  1996, Public Law 104-330, as Amended (25 U.S.C. 4101 et seq.)..   195
20. Atomic Energy Act of 1954, Act of August 1, 1946, Chapter 
  724, as Amended by the Act of August 30, 1954, Chapter 1073, as 
  Amended (42 U.S.C. 2011 et seq.)...............................   195
21. Title 23, United States Code, Highways, Public Law 109-13....   207
22. Department of Energy Organization Act, Public Law 95-91, as 
  Amended (42 U.S.C. 7101 et seq.)...............................   209
23. Department of Energy Science Education Enhancement Act, Part 
  E of Title XXXI of Public Law 101-510, as Amended (42 U.S.C. 
  7381-7381E)....................................................   215
24. Spark M. Matsunaga Hydrogen Research, Development, and 
  Demonstration Act of 1990, Public Law 101-566, as Amended (42 
  U.S.C. 12401 et seq.)..........................................   217
25. Methane Hydrate Research and Development Act of 2000, Act May 
  2, 2000, Public Law 106-193 (30 U.S.C. 1902 Note)..............   228
26. High-Performance Computing Act of 1991, Public Law 102-194, 
  as Amended (15 U.S.C. 5501 et seq.)............................   235
27. Coal Research and Development Act of 1960, Public Law 96-480 
  (30 U.S.C. 661 et seq.)........................................   236
28. Title 35, United States Code, Public Law 96-517..............   237
29. Federal Nonnuclear Energy Research and Development Act of 
  1974, Public Law 93-577........................................   238
30. Stevenson-Wydler Technology Innovation Act of 1980, 15 U.S.C. 
  3712...........................................................   270
31. Agricultural Risk Protection Act of 2000, Public Law 106-224, 
  as Amended.....................................................   270
32. Public Utility Holding Company Act of 1935, Act of August 26, 
  1935, Chapter 687, as Amended (15 U.S.C. 79-79Z-6).............   271
33. Public Utility Regulatory Policies Act of 1978, Public Law 
  95-617, as Amended (16 U.S.C. 2601 et seq.)....................   321

 NATIONAL ENERGY CONSERVATION POLICY ACT PUBLIC LAW 95-619 AS AMENDED 
(42 U.S.C. 8201 ET SEQ.)

           *       *       *       *       *       *       *

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE AND TABLE OF CONTENTS

           *       *       *       *       *       *       *

TITLE V--FEDERAL ENERGY INITIATIVES

           *       *       *       *       *       *       *

PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *

Sec. 550. Survey of energy saving potential.
Sec. 551. Energy and water savings measures in congressional buildings. 
Sec. 552. Federal procurement of energy efficient products. 
Sec. [551.] 553. Definitions. 

           *       *       *       *       *       *       *

TITLE V--FEDERAL ENERGY INITIATIVES

           *       *       *       *       *       *       *

PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Performance Requirement for Federal Buildings.--
(1) [Subject to paragraph (2), each agency shall apply energy 
conservation measures to, and shall improve the design for the 
construction of, its Federal buildings so that the energy 
consumption per gross square foot of its Federal buildings in 
use during the fiscal year 1995 is at least 10 percent less 
than the energy consumption per gross square foot of its 
Federal buildings in use during the fiscal year 1985 and so 
that the energy consumption per gross square foot of its 
Federal buildings in use during the fiscal year 2000 is at 
least 20 percent less than the energy consumption per gross 
square foot of its Federal buildings in use during fiscal year 
1985.] (A) Subject to paragraph (2), each agency shall apply 
energy conservation measures to, and shall improve the design 
for the construction of, the Federal buildings of the agency 
(including each industrial or laboratory facility) so that the 
energy consumption for each gross square foot of the Federal 
buildings of the agency for fiscal years 2006 through 2015 is 
reduced, as compared with the energy consumption for each gross 
square foot of the Federal buildings of the agency for fiscal 
year 2004, 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

    (B) The energy reduction goals and baseline established in 
subparagraph (A) supersede--
          (i) all goals and baselines under this paragraph in 
        effect on the day before the date of enactment of this 
        subparagraph; and
          (ii) any related reporting requirements.
    (2) An agency may exclude from the requirements of 
paragraph (1) any building, and the associated energy 
consumption and gross square footage, in which energy intensive 
activities are carried out. Each agency shall identify and list 
in each report made under section 548(a) the buildings 
designated by it for such exclusion.
    (3) Not later than December 31, 2013, the Secretary shall--
          (A) review the results of the implementation of the 
        energy performance requirement established under 
        paragraph (1); and
          (B) submit to Congress recommendations concerning 
        energy performance requirements for each of fiscal 
        years 2015 through 2024.

           *       *       *       *       *       *       *

    (c) Exclusions.--(1) [An agency may exclude, from the 
energy consumption requirements for the year 2000 established 
under subsection (a) and the requirements of subsection (b)(1), 
any Federal building or collection of Federal buildings, and 
the associated energy consumption and gross square footage, if 
the head of such agency finds that compliance with such 
requirements would be impractical. A finding of 
impracticability shall be based on the energy intensiveness of 
activities carried out in such Federal buildings or collection 
of Federal buildings, the type and amount of energy consumed, 
the technical feasibility of making the desired changes, and, 
in the cases of the Departments of Defense and Energy, the 
unique character of certain facilities operated by such 
Departments.] (A) An agency may exclude, from the energy 
performance requirement for a fiscal year established under 
subsection (a) and the energy management requirement 
established undersubsection (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 (42 U.S.C. 13201 et seq.), Executive 
        orders, and other Federal law; and
          (iv) the agency has implemented all practicable, 
        life-cycle cost-effective projects with respect to the 
        Federal building or collection of Federal buildings to 
        be excluded.
    (B) A finding of impracticability under subparagraph (A)(i) 
shall be based on--
          (i) the energy intensiveness of activities carried 
        out in the Federal building or collection of Federal 
        buildings; or
          (ii) the fact that the Federal building or collection 
        of Federal buildings is used in the performance of a 
        national security function.
      (2) Each agency shall identify and list, in each report 
made under section 548(a), the Federal buildings designated by 
it for such exclusion. The Secretary shall review such findings 
for consistency with the [impracticability standards] standards 
for exclusion set forth in paragraph (1), and may within 90 
days after receipt of the findings, reverse [a finding of 
impracticability] the exclusion. In the case of any such 
reversal, the agency shall comply with the [energy consumption 
requirements] requirements of subsections (a) and (b)(1) for 
the building concerned.
    (3) Not later than 180 days after the date of enactment of 
this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).

           *       *       *       *       *       *       *

    (e) Metering of Energy Use.--(1)(A) Not later than October 
1, 2012, in accordance with guidelines established by the 
Secretary under paragraph (2), each Federal building shall, for 
the purposes of efficient use of energy and reduction in the 
cost of electricity used in the building, be metered or 
submetered.
          (B) Each agency shall use, to the maximum extent 
        practicable, advanced meters or advanced metering 
        devices that provide data at least daily on, and that 
        measure at least hourly, consumption of electricity in 
        the Federal buildings of the agency.
          (C) The data shall be--
                  (i) incorporated into Federal energy tracking 
                systems; and
                  (ii) made available to Federal facility 
                energy managers.
    (2)(A) Not later than 180 days after the date of enactment 
of this subsection, the Secretary (in consultation with the 
Secretary of Defense, the Administrator of General Services, 
representatives from the metering industry, utility industry, 
energy services industry, energy efficiency industry, energy 
efficiency advocacy organizations, national laboratories, and 
universities, and Federal facility energy managers) shall 
establish guidelines for agencies to carry out paragraph (1).
      (B) The guidelines shall--
          (i) take into consideration--
                  (I) the cost of metering and submetering and 
                the reduced cost of operation and maintenance 
                expected to result from metering and 
                submetering;
                  (II) the extent to which metering and 
                submetering are expected to result in increased 
                potential for energy management, increased 
                potential for energy savings and energy 
                efficiency improvement, and cost and energy 
                savings because of utility contract 
                aggregation; and
                  (III) the measurement and verification 
                protocols of the Department of Energy;
          (ii) include recommendations concerning the amount of 
        funds and the number of trained personnel necessary to 
        gather and use the metering information to track and 
        reduce energy use;
          (iii) establish priorities for types and locations of 
        buildings to be metered and submetered based on cost-
        effectiveness and a schedule of 1 or more dates, not 
        later than 1 year after the date of issuance of the 
        guidelines, on which paragraph (1) takes effect; and
          (iv) establish exclusions from the requirements of 
        paragraph (1) based on the de minimis quantity of 
        energy use of a Federal building, industrial process, 
        or structure.
    (3) Not later than 180 days after the date on which 
guidelines are established under paragraph (2), in a report 
submitted by an agency under section 548(a), the agency shall 
submit to the Secretary a plan describing the manner in which 
the agency will implement paragraph (1), including--
          (A) the manner in which the agency will designate 
        personnel primarily responsible for carrying out that 
        implementation; and
          (B) demonstration by the agency, complete with 
        documentation, of any finding that the use of advanced 
        meters or advanced metering devices described in 
        paragraph (1) is not practicable.

           *       *       *       *       *       *       *

SEC. 546. INCENTIVES FOR AGENCIES. * * *

    (d). * * *
          (2) * * *
                  (G) succeeded in the implementation of the 
                guidelines established under section 159 of the 
                Energy Policy Act of 1992 (42 U.S.C. 8262e).
    (e) Retention of Energy and Water Savings.--(1) An agency 
may retain any funds appropriated to the agency for energy 
expenditures, water expenditures, or wastewater treatment 
expenditures, at buildings subject to the requirements of 
subsections (a) and (b) of section 543, that are not expended 
because of energy savings or water savings.
      (2) Except as otherwise provided by law, funds described 
in paragraph (1) may be used by an agency only for energy 
efficiency, water conservation, or unconventional and renewable 
energy resources projects.

           *       *       *       *       *       *       *

SEC. 548. REPORTS.

    (a) * * *
    (b) Reports to the President and Congress.--The Secretary 
shall report, not later than April 2 of each year, with respect 
to each fiscal year beginning after the date of the enactment 
of this subsection, to the President and Congress--

           *       *       *       *       *       *       *

SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.

    (a) * * *

           *       *       *       *       *       *       *

    (d) Report.--As soon as practicable after the completion of 
the project carried out under this section, the Secretary shall 
transmit a report of the findings and conclusions of the 
project to the Committee on Energy and Natural Resources and 
the Committee on Governmental Affairs of the Senate, the 
Committee on Energy and Commerce, the Committee on Government 
Operations, and the Committee on Public Works and 
Transportation of the House of Representatives, and the 
agencies who own the buildings involved in such project. Such 
report shall include an analysis of the probability of each 
agency achieving [the 20 percent reduction goal established 
under section 543(a) of the National Energy Conservation Policy 
Act (42 U.S.C. 8253(a)).] each of the energy reduction goals 
established under section 543(a).

           *       *       *       *       *       *       *

SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) Definitions.--In this section:
          (1) Congressional building.--The term ``congressional 
        building'' means a facility administered by Congress.
          (2) Plan.--The term ``plan'' means an energy 
        conservation and management plan developed under 
        subsection (b)(1).
    (b) Plan.--
          (1) In general.--The Architect of the Capitol shall 
        develop, update, and implement a cost-effective energy 
        conservation and management plan for congressional 
        buildings to meet the energy performance requirements 
        for Federal buildings established under section 
        543(a)(1).
          (2) Requirements.--The plan shall include--
                  (A) a description of the life-cycle cost 
                analysis used to determine the cost-
                effectiveness of proposed energy efficiency 
                projects;
                  (B) a schedule that ensures that complete 
                energy surveys of all congressional buildings 
                are conducted every 5 years to determine the 
                cost and payback period of energy and water 
                conservation measures;
                  (C) a strategy for installation of life-cycle 
                cost-effective energy and water conservation 
                measures;
                  (D) the results of a study of the costs and 
                benefits of installation of submetering in 
                congressional buildings; and
                  (E) information packages and ``how-to'' 
                guides for each Member and employing authority 
                of Congress that describe simple and cost-
                effective methods to save energy and taxpayer 
                dollars in congressional buildings.
          (3) Submission to congress.--Not later than 180 days 
        after the date of enactment of the Energy Policy Act of 
        2005, the Architect of the Capitol shall submit to 
        Congress the plan developed under paragraph (1).
    (c) Annual Report.--
          (1) In general.--The Architect of the Capitol shall 
        annually submit to Congress a report on congressional 
        energy management and conservation programs carried out 
        for congressional buildings under this section.
          (2) Requirements.--A report submitted under paragraph 
        (1) shall describe in detail--
                  (A) energy expenditures and savings estimates 
                for each congressional building;
                  (B) any energy management and conservation 
                projects for congressional buildings; and
                  (C) future priorities to ensure compliance 
                with this section.

           *       *       *       *       *       *       *

SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Definitions.--In this section:
          (1) The term ``Energy Star product'' means a product 
        that is rated for energy efficiency under an Energy 
        Star program.
          (2) The term ``Energy Star program'' means the 
        program established by section 324A of the Energy 
        Policy and Conservation Act.
          (3) The term ``executive agency'' has the meaning 
        given the term in section 4 of the Office of Federal 
        Procurement Policy Act (41 U.S.C. 403).
          (4) The term ``FEMP designated product'' means a 
        product that is designated under the Federal Energy 
        Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for 
        energy efficiency.
    (b) Procurement of Energy Efficient Products.--(1) Except 
as provided in paragraph (2), to meet the requirements of an 
executive agency for an energy consuming product, the head of 
the executive agency shall procure--
          (A) an Energy Star product; or
          (B) a FEMP designated product.
    (2) The head of an executive agency shall not be required 
to comply with paragraph (1) if the head of the executive 
agency specifies in writing that--
          (A) taking into account energy cost savings, an 
        Energy Star product or FEMP designated product is not 
        cost-effective over the life of the product; or
          (B) no Energy Star product or FEMP designated product 
        is reasonably available that meets the functional 
        requirements of the executive agency.
    (3) The head of an executive agency shall incorporate 
criteria for energy efficiency that are consistent with the 
criteria used for rating Energy Star products and FEMP 
designated products into--
          (A) the specifications for any procurements involving 
        energy consuming products and systems, including--
                  (i) guide specifications;
                  (ii) project specifications; and
                  (iii) construction, renovation, and services 
                contracts that include the provision of energy 
                consuming products and systems; and
          (B) the factors for the evaluation of offers received 
        for the sprocurement.
    (c) Listing of Energy Efficient Products in Federal 
Catalogs.--(1) Any inventory or listing of products by the 
General Services Administration or the Defense Logistics Agency 
shall clearly identify and prominently display Energy Star 
products and FEMP designated products.
    (2)(A) Except as provided in subparagraph (B), 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.
    (B) Subparagraph (A) shall not apply if an agency ordering 
a product specifies in writing that--
          (i) taking into account energy cost savings, no 
        Energy Star product or FEMP designated product is cost-
        effective for the intended application over the life of 
        the product; or
          (ii) no Energy Star product or FEMP designated 
        product is available to meet the functional 
        requirements of the ordering agency.
    (d) Specific Products.--(1) In the case of an electric 
motor of 1 to 500 horsepower, an executive agency shall select 
only a premium efficient motor that meets the standard 
established by the Secretary under paragraph (2).
    (2) Not later than 120 days after the date of enactment of 
this subsection and after considering the recommendations of 
associated electric motor manufacturers and energy efficiency 
groups, the Secretary shall establish a standard for premium 
efficient motors.
    (3)(A) Each Federal agency is encouraged to take actions 
(such as appropriate cleaning and maintenance) to maximize the 
efficiency of air conditioning and refrigeration equipment, 
including the use of a system treatment or additive that--
          (i) would reduce the electricity consumed by air 
        conditioning and refrigeration equipment; and
          (ii) meets the criteria specified in subparagraph 
        (B).
    (B) A system treatment or additive referred to in 
subparagraph (A) shall be--
          (i) determined by the Secretary to be effective in 
        increasing the efficiency of air conditioning and 
        refrigeration equipment without having an adverse 
        impact on--
                  (I) air conditioning and refrigeration 
                performance (including cooling capacity); or
                  (II) the useful life of the equipment;
          (ii) determined by the Administrator of the 
        Environmental Protection Agency to be environmentally 
        safe; and
          (iii) shown, in tests conducted by the National 
        Institute of Standards and Technology, in accordance 
        with Department of Energy test procedures, to increase 
        the seasonal energy efficiency ratio (SEER) or energy 
        efficiency ratio (EER) without having any adverse 
        impact on the system, system components, the 
        refrigerant or lubricant, or other materials in the 
        system.
    (4) The results of the tests described in paragraph 
(3)(B)(iii) shall be published in the Federal Register for 
public review and comment.
    (5) For purposes of this subsection, a hardware device or 
primary refrigerant shall not be considered an additive.
    (e) Regulations.--Not later than 180 days after the date of 
enactment of this section, the Secretary shall issue guidelines 
to carry out this section.

SEC. [551.] 553. DEFINITIONS. * * *

           *       *       *       *       *       *       *

            TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

    (a) * * *
    (c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2016. 
                              ----------                              

  LEGISLATIVE BRANCH APPROPRIATIONS ACT, 1999--PUBLIC LAW 105-275 (2 
U.S.C. 1815)

           *       *       *       *       *       *       *

    [Sec. 310. Energy conservation and management
    [The Architect of the Capitol--
          [(1) shall develop and implement a cost-effective 
        energy conservation strategy for all facilities 
        currently administered by Congress to achieve a net 
        reduction of 20 percent in energy consumption on the 
        congressional campus compared to fiscal year 1991 
        consumption levels on a Btu-per-gross-square-foot basis 
        not later than 7 years after October 21, 1998;
          [(2) shall submit to Congress no later than 10 months 
        after October 21, 1998, a comprehensive energy 
        conservation and management plan which includes life 
        cycle costs methods to determine the cost-effectiveness 
        of proposed energy efficiency projects;
          [(3) shall submit to the Committee on Appropriations 
        in the Senate and the House of Representatives a 
        request for the amount of appropriations necessary to 
        carry out this section;
          [(4) shall present to Congress annually a report on 
        congressional energy management and conservation 
        programs which details energy expenditures for each 
        facility, energy management and conservation projects, 
        and future priorities to ensure compliance with the 
        requirements of this section;
          [(5) shall perform energy surveys of all 
        congressional buildings and update such surveys as 
        needed;
          [(6) shall use such surveys to determine the cost and 
        payback period of energy and water conservation 
        measures likely to achieve the required energy 
        consumption levels;
          [(7) shall install energy and water conservation 
        measures that will achieve the requirements through 
        previously determined life cycle cost methods and 
        procedures;
          [(8) may contract with nongovernmental entities and 
        employ private sector capital to finance energy 
        conservation projects and achieve energy consumption 
        targets;
          [(9) may develop innovative contracting methods that 
        will attract private sector funding for the 
        installation of energy-efficient and renewable energy 
        technology to meet the requirements of this section;
          [(10) may participate in the Department of Energy's 
        Financing Renewable Energy and Efficiency (FREE 
        Savings) contracts program for Federal Government 
        facilities; and
          [(11) shall produce information packages and ``how-
        to'' guides for each Member and employing authority of 
        the Congress that detail simple, cost-effective methods 
        to save energy and taxpayer dollars.]
                              ----------                              

 ENERGY CONSERVATION AND PRODUCTION ACT--PUBLIC LAW 94-385, AS AMENDED 
(42 U.S.C. 6801 ET SEQ.)

           *       *       *       *       *       *       *

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

    (a)(1) * * *
          (2) The standards established under paragraph (1) 
        shall--
          (A) contain energy saving and renewable energy 
        specifications that meet or exceed the energy saving 
        and renewable energy specifications of [CABO Model 
        Energy Code, 1992 (in the case of residential 
        buildings) or ASHRAE Standard 90.1-1989] the 2004 
        International Energy Conservation Code (in the case of 
        residential buildings) or ASHRAE Standard 90.1-2004 (in 
        the case of commercial buildings);

           *       *       *       *       *       *       *

      (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.
    (B) 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.
    (C) In the budget request of the Federal agency for each 
fiscal year and each report submitted by the Federal agency 
under section 548(a) of the National Energy Conservation Policy 
Act (42 U.S.C. 8258(a)), the head of each Federal agency shall 
include--
          (i) a list of all new Federal buildings owned, 
        operated, or controlled by the Federal agency; and
          (ii) a statement specifying whether the Federal 
        buildings meet or exceed the revised standards 
        established under this paragraph. 

           *       *       *       *       *       *       *

    Sec. 422. For the purpose of carrying out the 
weatherization program under this part, there are authorized to 
be appropriated [for fiscal years 1999 through 2003 such sums 
as may be necessary] $325,000,000 for fiscal year 2006, 
$400,000,000 for fiscal year 2007, and $500,000,000 for fiscal 
year 2008.
                              ----------                              

SOLID WASTE DISPOSAL ACT--PUBLIC LAW 89-272, AS AMENDED (42 U.S.C. 6901 
                                ET SEQ.)

SHORT TITLE AND TABLE OF CONTENTS

           *       *       *       *       *       *       *

                  Subtitle F--Federal Responsibilities

Sec. 6001. Application of Federal, State and local law to Federal 
          facilities.
Sec. 6002. Federal Procurement.
Sec. 6003. Cooperation with Environmental Protection Agency.
Sec. 6004. Applicability of solid waste disposal guidelines to executive 
          agencies.
Sec. 6005. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.

           *       *       *       *       *       *       *

Subtitle F--Federal Responsibilities

           *       *       *       *       *       *       *

    Sec. 6005. (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;
                  (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 agencyhead 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).
                              ----------                              

 ENERGY POLICY AND CONSERVATION ACT--Public Law 94-163, as amended (42 
U.S.C. 6201 et seq.)

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

        TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

     * * * * * * *

  Part C--Authority to Contract for Petroleum Product not Owned by the 
                              United States

     * * * * * * *
Sec. 174. Contracts for which implementing legislation is needed.

                           [Part D--Expiration

[Sec. 181. Expiration.]

               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.

                  TITLE II--STANDBY ENERGY AUTHORITIES

     * * * * * * *

                 [Part C--Energy Emergency Preparedness

[Sec. 271. Congressional findings, policy, and purpose.
[Sec. 272. Preparation for petroleum supply interruptions.
[Sec. 273. Summer fill and fuel budgeting programs.]

             Part C--Summer Fill and Fuel Budgeting Programs

Sec. 273. Summer fill and fuel budgeting programs.

                           [Part D--Expiration

Sec. 281. Expiration.]
     * * * * * * *

                 TITLE III--IMPROVING ENERGY EFFICIENCY

     * * * * * * *

  Part B--Energy Conservation Program for Consumer Products Other Than 
                               Automobiles

     * * * * * * *
Sec. 324. Labeling
Sec. 324A. Energy Star Program
     * * * * * * *

TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

           *       *       *       *       *       *       *

                  Part B--Strategic Petroleum Reserve

    [Sec. 166. There are authorized to be appropriated such 
sums as may be necessary to implement this part, to remain 
available until expended.]

                    AUTHORIZATION OF APPROPRIATIONS

    Sec. 166. There are authorized to be appropriated to the 
Secretary such sums as may be necessary to carry out this part 
and part D, to remain available until expended.

           *       *       *       *       *       *       *

                      CONDITIONS FOR RELEASE; PLAN

    Sec. 183.* * *
    (b) Definition.--For purposes of this section a 
``dislocation in the heating oil market'' shall be deemed to 
occur only when--
          (1) The price differential between crude oil, as 
        reflected in an industry daily publication such as 
        ``Platt's Oilgram Price Report'' or ``Oil Daily'' and 
        No. 2 heating oil, as reported in the Energy 
        Information Administration's retail price data for the 
        Northeast, increases [by more than 60 percent over its 
        5 year rolling average for the months of mid-October 
        through March] by more than 60 percent over its 5-year 
        rolling average for the months of mid-October through 
        March (considered as a heating season average), and 
        continues for 7 consecutive days; and
          (2) The price differential continues to increase 
        during the most recent week for which price information 
        is available.

           *       *       *       *       *       *       *

    [Sec. 186. There are authorized to be appropriated such 
sums as may be necessary to implement this part.]

           *       *       *       *       *       *       *

                          [Part E--Expiration

    [Sec. 191. Except as otherwise provided in title I, all 
authority under any provision of title I (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, 2008, but such expiration 
shall not affect any action or pending proceedings, civil or 
criminal, not finally determined on such date, nor any action 
or proceeding based upon any act committed prior to midnight, 
September 30, 2008.]

           *       *       *       *       *       *       *

TITLE II--STANDBY ENERGY AUTHORITIES

           *       *       *       *       *       *       *

            Part C--Summer Fill and Fuel Budgeting Programs

SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

    Section 602(a) of P.L. 106-469 (114 Stat. 2040) indicated 
that this new section 273 should be added at the end of part C 
of title II, but, section 104(3) of the same Public Law 
repealed that part C.
    (a) Definitions.--In this section:
          (1) Budget contract.--The term ``budget contract'' 
        means a contract between a retailer and a consumer 
        under which the heating expenses of the consumer are 
        spread evenly over a period of months.
          (2) Fixed-price contract.--The term ``fixed-price 
        contract'' means a contract between a retailer and a 
        consumer under which the retailer charges the consumer 
        a set price for propane, kerosene, or heating oil 
        without regard to market price fluctuations.
          (3) Price cap contract.--The term ``price cap 
        contract'' means a contract between a retailer and a 
        consumer under which the retailer charges the consumer 
        the market price for propane, kerosene, or heating oil, 
        but the cost of the propane, kerosene, or heating oil 
        may exceed a maximum amount stated in the contract.
    (b) Assistance.--At the request of the chief executive 
officer of a State, the Secretary shall provide information, 
technical assistance, and funding--
          (1) to develop education and outreach programs to 
        encourage consumers to fill their storage facilities 
        for propane, kerosene, and heating oil during the 
        summer months; and
          (2) to promote the use of budget contracts, price cap 
        contracts, fixed-price contracts, and other 
        advantageous financial arrangements, to avoid severe 
        seasonal price increases for and supply shortages of 
        those products.
    (c) Preference.--In implementing this section, the 
Secretary shall give preference to States that contribute 
public funds or leverage private funds to develop State summer 
fill and fuel budgeting programs.
    (d) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section--
          (1) $25,000,000 for fiscal year 2001; and
          (2) such sums as are necessary for each fiscal year 
        thereafter.
    [(e) Inapplicability of Expiration Provision.--Section 281 
does not apply to this section.]

           *       *       *       *       *       *       *

                          [Part D--Expiration

    Sec. 281. Except as otherwise provided in title II, all 
authority under any provision of title II (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, 2008, but such expiration 
shall not affect any action or pending proceedings, civil or 
criminal, not finally determined on such date, nor any action 
or proceeding based upon any act committed prior to midnight, 
September 30, 2008.]

           *       *       *       *       *       *       *

    Sec. 321. For purposes of this part:

           *       *       *       *       *       *       *

          (29)(D)(i) The term ``F40T12 lamp'' means a nominal 
        40 watt tubular fluorescent lamp which is 48 inches in 
        length and one-and-a-half inches in diameter, and 
        conforms to ANSI standard [C78.1-1978(R1984)] C78.81-
        2003 (Data Sheet 7881-ANSI-1010-1).
          (ii) The term ``F96T12 lamp'' means a nominal 75 watt 
        tubular fluorescent lamp which is 96 inches in length 
        and one-and-a-half inches in diameter, and conforms to 
        ANSI standard [C78.3-1978(R1984)] C78.81-2003 (Data 
        Sheet 7881-ANSI-3007-1).
          (iii) The term ``F96T12HO lamp'' means a nominal 110 
        watt tubular fluorescent lamp which is 96 inches in 
        length and one-and-a-half inches in diameter, and 
        conforms to ANSI standard [C78.1-1978(R1984)] C78.81-
        2003 (Data Sheet 7881-ANSI-1019-1).

           *       *       *       *       *       *       *

                  (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.

           *       *       *       *       *       *       *

        (30)(S)(i) The term ``medium base compact fluorescent 
        lamp'' means an integrally ballasted fluorescent lamp 
        with a medium screw base and a rated input voltage of 
        115 to 130 volts and which is designed as a direct 
        replacement for a general service incandescent lamp. 
        (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.

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *

    Sec. 323. * * *
    (b) Amended and New Procedures.--

           *       *       *       *       *       *       *

    (9) Test procedures for illuminated exit signs shall be 
based on the test method used under version 2.0 of the Energy 
Star program of the Environmental Protection Agency for 
illuminated exit signs.
    (10)(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 for compact 
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''.

           *       *       *       *       *       *       *

    (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--
          (A) suspended ceiling fans; and
          (B) 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.

           *       *       *       *       *       *       *

                                LABELING

    Sec. 324. (a). In General.--(1) * * *
    (2) * * *
          (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).

           *       *       *       *       *       *       *

    (5)(A) For covered products described in subsections (u) 
through (ee) 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.

           *       *       *       *       *       *       *

                          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.

                     ENERGY CONSERVATION STANDARDS

    Sec. 325. (a) Purposes. * * *
    (f) Standards for Furnaces.--
          (3)(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.

           *       *       *       *       *       *       *

    (g) Standards for Dishwashers; Clothes Washers; Clothes 
Dryers, Fluorescent Lamp Ballasts.--

           *       *       *       *       *       *       *

          (6) The standards described in paragraph (5) do not 
        apply to (A) a ballast which is designed for dimming or 
        for use in ambient temperatures of 0ES 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       Ballast
  Application for operation of--      input       nominal      efficacy
                                     voltage     lamp watts     factor
------------------------------------------------------------------------
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 subparagraphs (A) and 
        (B) 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 20F 
                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.

           *       *       *       *       *       *       *

    (o) Criteria for Prescribing New or Amended Standards.--

           *       *       *       *       *       *       *

        (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.

           *       *       *       *       *       *       *

    (p) Procedure for Prescribing New or Amended Standards.--
[Any] Except as provided in subsection (u), any new or amended 
energy conservation standard shall be prescribed in accordance 
with the following procedure:

           *       *       *       *       *       *       *

    (u) Special Rulemaking Procedures.--(1) Notwithstanding any 
other provision of law, the Secretary may publish a notice of 
direct final rulemaking based on an energy conservation 
standard recommended by an interested person, if--
          (A) in response to an advance notice of proposed 
        rulemaking under paragraph (p), the interested person 
        (including a representative of a manufacturer of a 
        covered product, a conservation advocate, or consumer) 
        submits a joint comment recommending an energy 
        conservation standard; and
          (B) the Secretary determines that the energy 
        conservation standard complies with the substantive 
        provisions of this Act that apply to the type (or 
        class) of covered products to which the rule may apply.
    (2) The Secretary shall publish a notice of direct final 
rulemaking under paragraph (1) with a notice of proposed 
rulemaking incorporating by reference the regulatory language 
of the direct final rule that provides for an effective date 
not earlier than 90 days after the date of publication.
    (3) The Secretary may withdraw a direct final rule 
published under paragraph (2) before the effective date of the 
rule if an interested person files a significant adverse 
comment in response to the related notice of proposed 
rulemaking.
    (v) 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.
    (w) Suspended Ceiling Fans and Refrigerated Beverage 
Vending Machines.--(1) Not later than 4 years after the date of 
enactment of this subsection, the Secretary shall prescribe, by 
rule, energy conservation standards for--
          (A) suspended ceiling fans; and
          (B) refrigerated bottled or canned beverage vending 
        machines.
    (2) In establishing energy conservation standards under 
this subsection, the Secretary shall use the criteria and 
procedures prescribed under subsections (o) and (p).
    (3) 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.
    (x) 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.
    (y) 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.
    (z) Low Voltage Dry-Type Distribution Transformers.--The 
efficiency of a low voltage dry-type distribution transformer 
manufactured on or after January 1, 2006, 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).
    (aa) 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.
    (bb) 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.
    (cc) 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.
    (dd) Dehumidifiers.--(1) Dehumidifiers manufactured on or 
after October 1, 2007, shall have an Energy Factor that meets 
or exceeds the following values:

------------------------------------------------------------------------
                                                  Minimum energy factor
         Product capacity  (pints/day)                 (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:

------------------------------------------------------------------------
                                                  Minimum energy factor
         Product capacity  (pints/day)                 (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.
------------------------------------------------------------------------

    (ee) 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.
    (ff) Mercury Vapor Lamp Ballasts.--Mercury vapor lamp 
ballasts shall not be manufactured or imported after January 1, 
2008.
    (gg) Application Date.--Section 327 applies--
          (1) to products for which energy conservation 
        standards are to be established under subsection (l), 
        (u), (v), or (w) 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), (v), or (w) for 
        the product takes effect; and
          (2) to products for which energy conservation 
        standards are established under subsections (x) 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 
        (x) through (ff) take effect.

           *       *       *       *       *       *       *

                          EFFECT ON OTHER LAW

    Sec. 327(a). * * *
    (b). General Rule of Preemption for Energy Conservation 
Standards Before Federal Standard Becomes Effective for a 
Product.--

           *       *       *       *       *       *       *

          (5) is a regulation concerning the water use of 
        lavatory or kitchen faucets adopted by the State of 
        Rhode Island prior to the date of the enactment of the 
        Energy Policy Act of 1992; [or]
          (6) is a regulation (or portion thereof) concerning 
        the water efficiency or water use of gravity tank-type 
        low consumption water closets for installation in 
        public places, except that such a regulation shall be 
        effective only until January 1, 1997[.]; or
          (7)(A) is a regulation concerning standards for 
        commercial prerinse spray valves 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 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''.

           *       *       *       *       *       *       *

              ADMINISTRATIVE PROCEDURE AND JUDICIAL REVIEW

    Sec. 336. (a). * * *
    (b)(2) Upon the filing of the petition referred to in 
paragraph (1), the court shall have jurisdiction to review the 
rule in accordance with chapter 7 of title 5, United States 
Code, and to grant appropriate relief as provided in [such 
chapter] that chapter, except, notwithstanding section 
706(2)(D) of title 5, United States Code, no direct final rule 
prescribed or withdrawn under section 325(u) may be held 
unlawful or set aside because of the failure of the Secretary 
to observe a procedure required by law other than the 
procedures required under section 325(u). No rule under section 
323, 324, or 325 may be affirmed unless supported by 
substantial evidence.

           *       *       *       *       *       *       *

                           CONSUMER EDUCATION

    Sec. 337 (a). * * *
    (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; and
          (C) identifying financing options for energy 
        efficiency upgrades.
    (2) The Secretary and the Administrator of the Small 
Business Administration shall make program information 
available directly to small businesses and through otherFederal 
agencies, including the Federal Emergency Management Agency and the 
Department of Agriculture.

           *       *       *       *       *       *       *

            PART C--CERTAIN INDUSTRIAL EQUIPMENT DEFINITIONS

    Sec. 340. For purposes of this part--
          (1) The term ``covered equipment'' means one of the 
        following types of industrial equipment:
                  (A) Electric motors and pumps.
                  (B) Small commercial package air conditioning 
                and heating equipment.
                  (C) Large commercial package air conditioning 
                and heating equipment.
                  (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.
                  [(D)] (H) Packaged terminal air-conditioners 
                and packaged terminal heat pumps.
                  [(E)] (I) Warm air furnaces and packaged 
                boilers.
                  [(F)] (J) Storage water heaters, 
                instantaneous water heaters, and unfired hot 
                water storage tanks.
                  [(G)] (K) Any other type of industrial 
                equipment which the Secretary classifies as 
                covered equipment under section 341(b).

           *       *       *       *       *       *       *

          (2)(B) The types of equipment referred to in this 
        subparagraph (in addition to electric motors and pumps, 
        [small and large commercial package air conditioning 
        and heating equipment] commercial package air 
        conditioning and heating equipment, commercial 
        refrigerators, freezers, and refrigerator-freezers, 
        automatic commercial ice makers, commercial clothes 
        washers, packaged terminal air-conditioners, packaged 
        terminal heat pumps, warm air furnaces, packaged 
        boilers, storage water heaters, instantaneous water 
        heaters, and unfired hot water storage tanks) are as 
        follows:

           *       *       *       *       *       *       *

          [(8) The term ``small 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 
        which are rated below 135,000 Btu per hour (cooling 
        capacity).]
          [(9) The term ``large 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 
        which are rated at or above 135,000 Btu per hour and 
        below 240,000 Btu per hour (cooling capacity).]
          (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.

           *       *       *       *       *       *       *

          (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.

           *       *       *       *       *       *       *

    Sec. 342. (a) [Small and Large] Small, Large, and Very 
Large Commercial Package Air Conditioning and Heating 
Equipment, Packaged Terminal Air Conditioners and Heat Pumps, 
Warm-Air Furnaces, Packaged Boilers, Storage Water Heaters, 
Instantaneous Water Heaters, and Unfired Hot Water Storage 
Tanks.--
          (1) Each small commercial package air conditioning 
        and heating equipment manufactured on or after January 
        1, 1994 but before January 1, 2010, shall meet the 
        following standard levels:

           *       *       *       *       *       *       *

          (2) Each large commercial package air conditioning 
        and heating equipment manufactured on or after January 
        1, 1995 but before January 1, 2010, shall meet the 
        following standard levels:

           *       *       *       *       *       *       *

          (6)(A)(i) If ASHRAE/IES Standard 90.1, as in effect 
        on [the date of enactment of the Energy Policy Act of 
        1992] January 1, 2010, is amended with respect to any 
        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, or if ASHRAE/
        IES Standard 90.1, as in effect on October 24, 1992, is 
        amended with respect to any, packaged terminal air 
        conditioners, packaged terminal heat pumps, warm-air 
        furnaces, packaged boilers, storage water heaters, 
        instantaneous water heaters, or unfired hot water 
        storage tanks, the Secretary shall establish an amended 
        uniform national standard for that product at the 
        minimum level for each effective date specified in the 
        amended ASHRAE/IES Standard 90.1, unless the Secretary 
        determines, by rule published in the Federal Register 
        and supported by clear and convincing evidence, that 
        adoption of a uniform national standard more stringent 
        than such amended ASHRAE/IES Standard 90.1 for such 
        product would result in significant additional 
        conservation of energy and is technologically feasible 
        and economically justified.
          (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.

           *       *       *       *       *       *       *

          (C)(i) * * *
        (ii) with respect to large commercial package air 
        conditioning and heating equipment and very large 
        commercial package air conditioning and heating 
        equipment, on or after a date which is three years 
        after the effective date of the applicable minimum 
        energy efficiency requirement in the amended ASHRAE/IES 
        standard referred to in subparagraph (A);

           *       *       *       *       *       *       *

          (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).

           *       *       *       *       *       *       *

    (b) * * *
    (c) Commercial Refrigerators, Freezers, and Refrigerator-
Freezers.--(1) In this subsection:
          (A) The term ``AV'' means the adjusted volume (ft3) 
        (defined as 1.63  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 energy consumption 
(in kilowatt hours per day) that does not exceed the following:

Refrigerators with solid doors.....   0.10 V + 2.04
Refrigerators with transparent        0.12 V + 3.34
 doors.
Freezers with solid doors..........   0.40 V + 1.38
Freezers with transparent doors....   0.75 V + 4.10
Refrigerators/freezers with solid     0.27 AV-0.71 or 0.70.
 doors 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) 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      Harvest rate  (lbs     Maximum energy use    water use  (gal/100
                                  cooling        ice/24 hours)        (kWh/100 lbs ice)           lbs ice)
----------------------------------------------------------------------------------------------------------------
Ice Making Head...............  Water......  IES Standard 90.1 and in effect on 
        June 30, 1992.
          (B) If such an industry test procedure or rating 
        procedure for small commercial package air conditioning 
        and heating equipment, large commercial package air 
        conditioning and heating equipment very large 
        commercial package air conditioning and heating 
        equipment, packaged terminal air conditioners, packaged 
        terminal heat pumps, warm-air furnaces, packaged 
        boilers, storage water heaters, instantaneous water 
        heaters, or unfired hot water storage tanks is amended, 
        the Secretary shall amend the test procedure for the 
        product as necessary to be consistent with the amended 
        industry test procedure or rating procedure 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 described in paragraphs (2) and (3) 
        of this subsection.

           *       *       *       *       *       *       *

          (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 subsection 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).

           *       *       *       *       *       *       *

    (d)(1) Effective 180 days (or, in the case of small 
commercial package air conditioning and heating equipment, 
large commercial package air conditioning and heating 
equipment, very large commercial package air conditioning and 
heating equipment, commercial refrigerators, freezers, and 
refrigerator-freezers, automatic commercial ice makers, 
commercial clothes washers, packaged terminal air conditioners, 
packaged terminal heat pumps, warm-air furnaces, packaged 
boilers, storage water heaters, instantaneous water heaters, 
and unfired hot water storage tanks, 360 days) after a test 
procedure rule applicable to any covered equipment is 
prescribed under this section, no manufacturer, distributor, 
retailer, or private labeler may make any representation--

           *       *       *       *       *       *       *

                         LABELING REQUIREMENTS

    Sec. 344. (a) * * *
    (e) Subject to subsection (h), not later than 12 months 
after the Secretary establishes test procedures for small 
commercial package air conditioning and heating equipment, 
large commercial package air conditioning and heating 
equipment, very large commercial package air conditioning and 
heating equipment, commercial refrigerators, freezers, and 
refrigerator-freezers, automatic commercial ice makers, 
commercial clothes washers, packaged terminal air conditioners, 
packaged terminal heat pumps, warm-air furnaces, packaged 
boilers, storage water heaters, instantaneous water heaters, 
and unfired hot water storage tanks under section 343, the 
Secretary shall prescribe labeling rules under this section for 
such equipment. Such rules shall provide that the labeling of 
any small commercial package air conditioning and heating 
equipment, large commercial package air conditioning and 
heating equipment, very large commercial package air 
conditioning and heating equipment, commercial refrigerators, 
freezers, and refrigerator-freezers, automatic commercial ice 
makers, commercial clothes washers, packaged terminal air 
conditioner, packaged terminal heat pump, warm-air furnace, 
packaged boiler, storage water heater, instantaneous water 
heater, and unfired hot water storage tank manufactured after 
the 12-month period beginning on the date the Secretary 
prescribes such rules shall--
          (1) indicate the energy efficiency of the equipment 
        on the permanent nameplate attached to such equipment 
        or other nearby permanent marking;
          (2) prominently display the energy efficiency of the 
        equipment in new equipment catalogs used by the 
        manufacturer to advertise the equipment; and
          (3) include such other markings as the Secretary 
        determines necessary solely to facilitate enforcement 
        of the standards established for such equipment under 
        section 342.

           *       *       *       *       *       *       *

         ADMINISTRATION, ENFORCEMENT, PENALTIES, AND PREEMPTION

    Sec. 345(a) * * *
          (7) section 327(b)(4) shall be applied as if electric 
        motors were fluorescent lamp ballasts and as if 
        paragraph (5) of section 325(g) were section 342; [and]
          (8) notwithstanding any other provision of law, a 
        regulation or other requirement adopted by a State or 
        subdivision of a State contained in a State or local 
        building code for new construction concerning the 
        energy efficiency or energy use of an electric motor 
        covered under this part is not superseded by the 
        standards for such electric motor established or 
        prescribed under section 342(b) if such regulation or 
        requirement is identical to the standards established 
        or prescribed under such section[.]; and
          (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.

           *       *       *       *       *       *       *

    (b)(1) The provisions of section 325(u), section 326(a), 
(b), and (d), section 327(a), and sections 328 through 336 
shall apply with respect to the equipment specified in 
subparagraphs (B), (C), (D), (E), and (F) of section 340(1) to 
the same extent and in the same manner as they apply in [part 
B] part A. In applying such provisions for the purposes of such 
equipment, paragraphs (1), (2), (3), and (4) of subsection (a) 
shall apply.

           *       *       *       *       *       *       *

    (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 subsection 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.

           *       *       *       *       *       *       *

                    STATE ENERGY CONSERVATION PLANS

    Sec. 362 (a) * * *
    (g)(1) 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 the State submitted 
under subsection (b) or (e).
    (2) A review conducted under paragraph (1) should--
          (A) consider the energy conservation plans of other 
        States within the region; and
          (B) identify opportunities and actions carried out in 
        pursuit of common energy conservation goals.

           *       *       *       *       *       *       *

                     STATE ENERGY EFFICIENCY GOALS

    [Sec. 364. Each State energy conservation plan with respect 
to which assistance is made available under this part on or 
after October 1, 1991, shall contain a goal, consisting of an 
improvement of 10 percent or more in the efficiency of use of 
energy in the State concerned in the calendar year 2000 as 
compared to the calendar year 1990, and may contain interim 
goals.]
    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--
          (1) 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 1992; and
          (2) may contain interim goals.

           *       *       *       *       *       *       *

                           GENERAL PROVISIONS

    Sec. 365 (a). * * *
    (e) For the purpose of carrying out this part, there are 
authorized to be appropriated for [fiscal years 1999 through 
2003 such sums as may be necessary] $100,000,000 for each of 
fiscal years 2006 and 2007 and $125,000,000 for fiscal year 
2008.

           *       *       *       *       *       *       *

            PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS

SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL VEHICLES.

    (a) Department of Energy Program.--

           *       *       *       *       *       *       *

          (3) * * *
                  [(E) Dual fueled vehicles acquired pursuant 
                to this section shall be operated on 
                alternative fuels unless the Secretary 
                determines that operation on such alternative 
                fuels is not feasible.]
                  (E)(i) Dual fueled vehicles acquired pursuant 
                to this section shall be operated on 
                alternative fuels unless the Secretary 
                determines that an agency qualifies for a 
                waiver of the requirements of this section 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.
                  (ii) The Secretary shall monitor compliance 
                with this subparagraph by all fleets receiving 
                a waiver.
                  (iii) The Secretary shall report annually to 
                Congress on the extent to which the 
                requirements of this subparagraph are being 
                achieved, including information on annual 
                reductions achieved from the use of petroleum-
                based fuels and the problems, if any, 
                encountered in acquiring alternative fuels.
                              ----------                              --
--------

 UNITED STATES HOUSING ACT OF 1937--ACT OF SEPTEMBER 1, 1937, CHAPTER 
896, AS AMENDED (42 U.S.C. 1437 ET SEQ.)

           *       *       *       *       *       *       *

    Sec. 9. * * *
    (d) * * *
          (1) * * *
                  (I) capital expenditures to improve the 
                security and safety of residents[; and];
                  (J) homeownership activities, including 
                programs under section 32[.];
                  (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.

           *       *       *       *       *       *       *

    (e) * * *
          (2) * * *
                  (C) Treatment of savings.--[The treatment] 
                (i) In general._The treatment of utility and 
                waste management costs under the formula shall 
                provide that a public housing agency shall 
                receive the full financial benefit from any 
                reduction in the cost of utilities or waste 
                management resulting from any contract with a 
                third party to undertake energy conservation 
                improvements in one or more of its public 
                housing projects.
                  (ii) Third party contracts.--Contracts 
                described in clause (i) may include contracts 
                for--
                          (I) equipment conversions to less 
                        costly utility sources;
                          (II) projects with resident-paid 
                        utilities; and (III) 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--
                          (I) windows;
                          (II) heating system replacements;
                          (III) wall insulation;
                          (IV) site-based generation; and
                          (V) advanced energy savings 
                        technologies, including renewable 
                        energy generation and other such 
                        retrofits.
                              ----------                              --
--------

CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT--PUBLIC LAW 101-625, 
                  AS AMENDED (42 U.S.C. 12701 ET SEQ.)

    Sec. 109. (a) * * *
          (1) In general._The Secretary of Housing and Urban 
        Development and the Secretary of Agriculture shall, not 
        later than [1 year after the date of the enactment of 
        the Energy Policy Act of 1992] September 30, 2006, 
        jointly establish, by rule, energy efficiency standards 
        for--
                  (A) new construction of public and assisted 
                housing and single family and multifamily 
                residential housing (other than manufactured 
                homes) subject to mortgages insured under the 
                National Housing Act[; and];
                  (B) new construction of single family housing 
                (other than manufactured homes) subject to 
                mortgages insured, guaranteed, or made by the 
                Secretary of Agriculture under title V of the 
                Housing Act of 1949[.]; and
                  (C) rehabilitation and new construction of 
                public and assisted housing funded by HOPE VI 
                revitalization grants, established under 
                section 24 of the United States Housing Act of 
                1937 (42 U.S.C. 1437v), where such standards 
                are determined to be cost effective by the 
                Secretary of Housing and Urban Development.
          (2) Contents.--Such standards shall meet or exceed 
        the requirements of the Council of American Building 
        Officials Model Energy Code, 1992 (hereafter in this 
        section referred to as ``CABO Model Energy Code, 
        1992''), or, in the case of multifamily high rises, the 
        requirements of the American Society of Heating, 
        Refrigerating, and Air-Conditioning Engineers Standard 
        90.1-1989 (hereafter in this section referred to as 
        ``ASHRAE Standard 90.1-1989''), and, with respect to 
        rehabilitation and new construction of public and 
        assisted housing funded by HOPE VI revitalization 
        grants, established under section 24 of the United 
        States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
        International Energy Conservation Code, and shall be 
        cost-effective with respect to construction and 
        operating costs on a life-cycle cost basis. In 
        developing such standards, the Secretaries shall 
        consult with an advisory task force composed of 
        homebuilders, national, State, and local housing 
        agencies (including public housing agencies), energy 
        agencies, building code organizations and agencies, 
        energy efficiency organizations, utility organizations, 
        low-income housing organizations, and other parties 
        designated by the Secretaries.
    (b) Model Energy Code.--If the Secretaries have not, 
[within 1 year after the date of the enactment of the Energy 
Policy Act of 1992] by September 30, 2006, established energy 
efficiency standards under subsection (a), all new construction 
of housing specified in such subsection shall meet the 
requirements of CABO Model Energy Code, 1992, or, in the case 
of multifamily high rises, the requirements of ASHRAE Standard 
90.1-1989), and, with respect to rehabilitation and new 
construction of public and assisted housing funded by HOPE VI 
revitalization grants, established under section 24 of the 
United States Housing Act of 1937 (42 U.S.C. 1437v), the 2003 
International Energy Conservation Code.
    (c) Revisions of Model Energy Code and the International 
Energy Conservation Code._If the requirements of CABO Model 
Energy Code, 1992, or, in the case of multifamily high rises, 
ASHRAE Standard 90.1-1989 or, with respect to rehabilitation 
and new construction of public and assisted housing funded by 
HOPE VI revitalization grants, established under section 24 of 
the United States Housing Act of 1937 (42 U.S.C. 1437v), the 
2003 International Energy Conservation Code are revised at any 
time, the Secretaries shall, not later than 1 year after such 
revision, amend the standards established under subsection (a) 
to meet or exceed the requirements of such revised code or 
standard unless the Secretaries determine that compliance with 
such revised code or standard would not result in a significant 
increase in energy efficiency or would not be technologically 
feasible or economically justified.
                              ----------                              --
--------

 ENERGY POLICY ACT OF 1992--PUBLIC LAW 102-486, AS AMENDED (42 U.S.C. 
13211 ET SEQ.)

           *       *       *       *       *       *       *

SECTION 1. SHORT TITLE; TABLE OF CONTENTS

     * * * * * * *

                         TITLE III--NATURAL GAS

     * * * * * * *
[Sec. 306.--Agency Incentives Program.]
Sec. 306_Federal agency ethanol-blended gasoline and biodiesel 
          purchasing requirements.
     * * * * * * *

 TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, 
                 AND ALTERNATIVE FUELED PRIVATE VEHICLES

     * * * * * * *
[Sec. 514. Authorization of Appropriations.]
Sec. 515. Authorization of appropriations.
Sec. 516. Termination of authority.
     * * * * * * *

                  TITLE XXXVI--INDIAN ENERGY RESOURCES

[Sec. 2601. Definitions.
[Sec. 2602. Tribal Consultation.
[Sec. 2603. Promoting energy resource development and energy vertical 
          integration on Indian reservations.
[Sec. 2604. Indian energy resource regulation.
[Sec. 2605. Indian Energy Resource Commission.
[Sec. 2606. Tribal government energy assistance program.]
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.

           *       *       *       *       *       *       *

TITLE III--ALTERNATIVE FUELS--GENERAL

           *       *       *       *       *       *       *

SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.

           *       *       *       *       *       *       *

    (c) Allocation of Incremental Costs.--The General Services 
Administration and any other Federal agency that procures motor 
vehicles for distribution to other Federal agencies [may] shall 
allocate the incremental cost of alternative fueled vehicles 
over the cost of comparable gasoline vehicles across the entire 
fleet of motor vehicles distributed by such agency.

           *       *       *       *       *       *       *

[SEC. 306. AGENCY INCENTIVES PROGRAM.

    [(a) Reduction in Rates.--To encourage and promote use of 
alternative fueled vehicles in Federal agencies, the 
Administrator of General Services may offer a reduction in fees 
charged to agencies for the lease of alternative fueled 
vehicles below those fees charged for the lease of comparable 
conventionally fueled motor vehicles.
    [(b) Sunset Provision.--This section shall cease to be 
effective 3 years after the date of the enactment of this Act.]

SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE AND BIODIESEL 
                    PURCHASING REQUIREMENT.

    (a) Ethanol-Blended Gasoline.--The head of each Federal 
agency shall ensure that, in areas in which ethanol-blended 
gasoline is reasonably available at a generally competitive 
price, the Federal agency purchases ethanol-blended gasoline 
containing at least 10 percent ethanol rather than nonethanol-
blended gasoline, for use in vehicles used by the agency that 
use gasoline.
    (b) Biodiesel.--
          (1) Definition of biodiesel.--In this subsection, the 
        term ``biodiesel'' has the meaning given the term in 
        section 312(f).
          (2) Requirement.--The head of each Federal agency 
        shall ensure that the Federal agency purchases, for use 
        in fueling fleet vehicles that use diesel fuel used by 
        the Federal agency at the location at which fleet 
        vehicles of the Federal agency are centrally fueled, in 
        areas in which the biodiesel-blended diesel fuel 
        described in subparagraphs (A) and (B) is available at 
        a generally competitive price--
                  (A) as of the date that is 5 years after the 
                date of enactment of this paragraph, biodiesel-
                blended diesel fuel that contains at least 20 
                percent biodiesel, rather than nonbiodiesel-
                blended diesel fuel; and
                  (B) as of the date that is 10 years after the 
                date of enactment of this paragraph, biodiesel-
                blended diesel fuel that contains at least 20 
                percent biodiesel, rather than nonbiodiesel-
                blended diesel fuel.
          (3) Requirement of federal law.--The provisions of 
        this subsection shall not be considered a requirement 
        of Federal law for the purposes of section 312.
    (c) Exemption.--This section does not apply to fuel used in 
vehicles excluded from the definition of ``fleet'' by 
subparagraphs (A) through (H) of section 301(9).

           *       *       *       *       *       *       *

SEC. 310. REPORTS.

           *       *       *       *       *       *       *

    (b) Compliance Report.--
          (1) In general.--Not later than [1 year after the 
        date of enactment of this subsection] February 15, 
        2006, and annually thereafter for the next 14 years, 
        the head of each Federal agency which is subject to 
        this Act and Executive Order No. 13031 shall prepare, 
        and submit to Congress, a report that--

           *       *       *       *       *       *       *

TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, 
AND ALTERNATIVE FUELED PRIVATE VEHICLES

           *       *       *       *       *       *       *

SEC. 508. CREDITS.

    (a) In General.--[The Secretary]
          (1) The Secretary shall allocate a credit to a fleet 
        or covered person that is required to acquire an 
        alternative fueled vehicle under this title, if that 
        fleet or person acquires an alternative fueled vehicle 
        in excess of the number that fleet or person is 
        required to acquire under this title or acquires an 
        alternative fueled vehicle before the date that fleet 
        or person is required to acquire an alternative fueled 
        vehicle under such title.
      (2) Not later than January 31, 2007, the Secretary 
shall--
                  (A) allocate credit in an amount to be 
                determined by the Secretary for--
                          (i) acquisition of--
                                  (I) a light-duty hybrid 
                                electric vehicle;
                                  (II) a plug-in hybrid 
                                electric vehicle;
                                  (III) a fuel cell electric 
                                vehicle;
                                  (IV) a medium- or heavy-duty 
                                dedicated vehicle; and (ii) 
                                investment in qualified 
                                alternative fuel infrastructure 
                                or nonroad equipment, as 
                                determined by the Secretary; 
                                and
                  (B) allocate more than 1, but not to exceed 5 
                credits for investment in an emerging 
                technology relating to any vehicle described in 
                subparagraph (A) to encourage--
                          (i) a reduction in petroleum demand;
                          (ii) technological advancement; and
                          (iii) environmental safety.

           *       *       *       *       *       *       *

[SEC. 514. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary 
for carrying out this title $10,000,000 for each of the fiscal 
years 1993 through 1997, and such sums as may be necessary for 
fiscal years 1998 through 2000.]

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) Revocation of Waiver.--The Secretary shall revoke any 
waiver granted under this section if the State or covered 
person fails to comply with subsection (b).

           *       *       *       *       *       *       *

SEC. 516. TERMINATION OF AUTHORITY.

    The authority provided by sections 501, 507, and 508 
terminates the earlier of--
          (1) September 30, 2015; or
          (2) the date, the Secretary has established, by rule, 
        a replacement program that achieves the goals of those 
        sections.

           *       *       *       *       *       *       *

SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--
          (1) For electric energy generated and sold by a 
        qualified renewable energy facility during the 
        incentive period, the Secretary shall make, subject to 
        the availability of appropriations, incentive payments 
        to the owner or operator of such facility.
          (2) The amount of such payment made to any such owner 
        or operator shall be as determined under subsection 
        (e).
          (3) 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 toreceive such payment [and which satisfies 
such other requirements as the Secretary deems necessary.]
          (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, 
                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). [Such 
        application shall be in such form, and shall be 
        submitted at such time, as the Secretary shall 
        establish.]
    (b) Qualified Renewable Energy Facility.--For purposes of 
this section, a qualified renewable energy facility is a 
facility which is owned by [a State or any political 
subdivision of a State (or an agency, authority, or 
instrumentality of a State or a political subdivision), by any 
corporation or association which is wholly owned, directly or 
indirectly, by one or more of the foregoing, or by a nonprofit 
electrical cooperative] a not-for-profit electric cooperative, 
a public utility described in section 115 of the Internal 
Revenue Code of 1986, a State, Commonwealth, territory, or 
possession of the United States, or the District of Columbia, 
or a political subdivision thereof, or an Indian tribal 
government or subdivision thereof, and which generates electric 
energy for sale in, or affecting, interstate commerce using 
solar, wind, biomass, landfill gas or geothermal energy, except 
that--
          (1) the burning of municipal solid waste shall not be 
        treated as using biomass energy; and
          (2) geothermal energy shall not include energy 
        produced from a dry steam geothermal reservoir which 
        has--
                  (A) no mobile liquid in its natural state;
                  (B) steam quality of 95 percent water; and
                  (C) an enthalpy for the total produced fluid 
                greater than or equal to 1200 Btu/lb (British 
                thermal units per pound).
    (c) Eligibility Window.--Payments may be made under this 
section only for electricity generated from a qualified 
renewable energy facility first used [during the 10-fiscal year 
period beginning with the first full fiscal year occurring 
after the enactment of this section] before October 1, 2016.
    (d) Payment Period.--A qualified renewable energy facility 
may receive payments under this section for a 10-fiscal year 
period. Such period shall begin with the fiscal year in which 
electricity generated from the facility is first eligible for 
such payments, or in which the Secretary determines that all 
necessary Federal and State authorizations have been obtained 
to begin construction of the facility.
    (e) Amount of Payment.--
        (1) In general.--Incentive payments made by the 
        Secretary under this section to the owner or operator 
        of any qualified renewable energy facility shall be 
        based on the number of kilowatt hours of electricity 
        generated by the facility through the use of solar, 
        wind, biomass, landfill gas or geothermal energy during 
        the payment period referred to in subsection (d). For 
        any facility, the amount of such payment shall be 1.5 
        cents per kilowatt hour, adjusted as provided in 
        paragraph (2).
        (2) Adjustments.--The amount of the payment made to any 
        person under this subsection as provided in paragraph 
        (1) shall be adjusted for inflation for each fiscal 
        year beginning after calendar year 1993 in the same 
        manner as provided in the provisions of section 
        29(d)(2)(B) of the Internal Revenue Code of 1986, 
        except that in applying such provisions the calendar 
        year 1993 shall be substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to 
any facility after [the expiration of the 20-fiscal year period 
beginning with the first full fiscal year occurring after the 
enactment of this section,] September 30, 2026 and no payment 
may be made under this section to any facility after a payment 
has been made with respect to such facility for a 10-fiscal 
year period.
    [(g) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary for fiscal years 1993, 
1994, and 1995 such sums as may be necessary to carry out the 
purposes of this section.]
    (g) Authorization of Appropriations.--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.

           *       *       *       *       *       *       *

                  [TITLE XXVI--INDIAN ENERGY RESOURCES

[SEC. 2601. DEFINITIONS.

    [For purposes of this title--
          [(1) the term ``Indian tribe'' means any Indian 
        tribe, band, nation, or other organized group or 
        community, including any Alaska Native village or 
        regional or village corporation as defined in or 
        established pursuant to the Alaska Native Claims 
        Settlement Act (43 U.S.C. 1601 et seq.), which is 
        recognized as eligible for the special programs and 
        services provided by the United States to Indians 
        because of their status as Indians; and
          [(2) the term ``Indian reservation'' includes Indian 
        reservations; public domain Indian allotments; former 
        Indian reservations in Oklahoma; land held by 
        incorporated Native groups, regional corporations, and 
        village corporations under the provisions of the Alaska 
        Native Claims Settlement Act (43 U.S.C. 1601 et seq.); 
        and dependent Indian communities within the borders of 
        the United States whether within the original or 
        subsequently acquired territory thereof, and whether 
        within or without the limits of a State.

[SEC. 2602. TRIBAL CONSULTATION.

          [In implementing the provisions of this Act, the 
        Secretary of Energy shall involve and consult with 
        Indian tribes to the maximum extent possible and where 
        appropriate and shall do so in a manner that is 
        consistent with the Federal trust and the Government-
        to-Government relationships between Indian tribes and 
        the Federal Government.

[SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND ENERGY VERTICAL 
                    INTEGRATION ON INDIAN RESERVATIONS.

    [(a) Demonstration Programs.--The Secretary of Energy, in 
consultation with the Secretary of the Interior, shall 
establish and implement a demonstration program to assist 
Indian tribes in pursuing energy self-sufficiency and to 
promote the development of a vertically integrated energy 
industry on Indian reservations, in order to increase 
development of the substantial energy resources located on such 
Indian reservations. Such program shall include, but not be 
limited to, the following components:
          [(1) The Secretary shall provide development grants 
        to Indian tribes or to joint ventures which are 51 
        percent or more controlled by an Indian tribe to assist 
        Indian tribes in obtaining the managerial and technical 
        capability needed to develop the energy resources on 
        Indian reservations. Such grants shall include 
        provisions for management training for tribal or 
        village members, improving the technical capacity of 
        the Indian tribe, and the reduction of tribal 
        unemployment. Each grant shall be for a period of 3 
        years.
          [(2) The Secretary shall provide grants, not to 
        exceed 50 percent of the project costs, for vertical 
        integration projects. For purposes of this paragraph, 
        the term ``vertical integration project'' means a 
        project that promotes the vertical integration of the 
        energy resources on an Indian reservation, so that the 
        energy resources are used or processed on such Indian 
        reservation. Such term includes, but is not limited to, 
        projects involving solar and wind energy, oil 
        refineries, the generation and transmission of 
        electricity, hydroelectricity, cogeneration, natural 
        gas distribution, and clean, innovative uses of coal.
          [(3) The Secretary shall provide technical assistance 
        (and such other assistance as is appropriate) to Indian 
        tribes for energy resource development and to promote 
        the vertical integration of energy resources on Indian 
        reservations.
    [(b) Low Interest Loans.--
          [(1) In general.--The Secretary shall establish a 
        program for making low interest loans to Indian tribes. 
        Such loans shall be used exclusively by Indian tribes 
        in the promotion of energy resource development and 
        vertical integration on Indian reservations.
          [(2) Terms.--The Secretary shall establish reasonable 
        terms for loans made under this section which are to be 
        used to carry out the purposes of this section.
    [(c) Authorization of Appropriations.--There are authorized 
to be appropriated--
          [(1) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, and 1997 to carry out the purposes of 
        subsection (a)(1);
          [(2) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, and 1997 to carry out the purposes of 
        subsection (a)(2); and
          [(3) $10,000,000 for each of the fiscal years 1994, 
        1995, 1996, and 1997 to carry out the purposes of 
        subsection (b).

[SEC. 2604. INDIAN ENERGY RESOURCE REGULATION.

    [(a) Grants.--The Secretary of the Interior is authorized 
to make annual grants to Indian tribes for the purpose of 
assisting Indian tribes in the development, administration, 
implementation, and enforcement of tribal laws and regulations 
governing the development of energy resources on Indian 
reservations.
    [(b) Purpose.--The purposes for which funds provided under 
a grant awarded under subsection (a) may be used include, but 
are not limited to--
          [(1) the training and education of employees 
        responsible for enforcing or monitoring compliance with 
        Federal and tribal laws and regulations;
          [(2) the development of tribal inventories of energy 
        resources;
          [(3) the development of tribal laws and regulations;
          [(4) the development of tribal legal and governmental 
        infrastructure to regulate environmental quality 
        pursuant to Federal and tribal laws; and
          [(5) the enforcement and monitoring of Federal and 
        tribal laws and regulations.
    [(c) Other Assistance.--The Secretary of the Interior and 
the Secretary of Energy shall cooperate with and provide 
assistance to Indian tribes for the purpose of assisting Indian 
tribes in the development, administration, and enforcement of 
tribal programs. Such cooperation and assistance shall include 
the following:
          [(1) Technical assistance and training, including the 
        provision of necessary circulars and training 
        materials.
          [(2) Assistance in the preparation and maintenance of 
        a continuing inventory of information on tribal energy 
        resources and tribal operations. In providing 
        assistance under this para graph, Federal departments 
        and agencies shall make available to Indian tribes all 
        relevant data concerning tribal energy resource 
        development consistent with applicable laws regarding 
        disclosure of proprietary and confidential information.
    [(d) Authorization of Appropriations.--There are authorized 
to be appropriated $10,000,000 for each of the fiscal years 
1994, 1995, 1996, and 1997 to carry out the purposes of this 
section.

[SEC. 2605. INDIAN ENERGY RESOURCE COMMISSION.

    [(a) Establishment.--There is hereby established the Indian 
Energy Resource Commission (hereafter in this section referred 
Ito as the ``Commission'').
    [(b) Membership.--The Commission shall consist of--
          [(1) 8 members appointed by the Secretary of the 
        Interior from recommendations submitted by Indian 
        tribes with developable energy resources, at least 4 of 
        whom shall be elected tribal leaders;
          [(2) 3 members appointed by the Secretary of the 
        Interior from recommendations submitted by the 
        Governors of States that have Indian reservations with 
        developable energy resources;
          [(3) 2 members appointed by the Secretary of the 
        Interior from among individuals in the private sector 
        with expertise in tribal and State taxation of energy 
        resources;
          [(4) 2 members appointed by the Secretary of the 
        Interior from individuals with expertise in oil and gas 
        royalty management administration, including auditing 
        and accounting;
          [(5) 2 members appointed by the Secretary of the 
        Interior from individuals in the private sector with 
        expertise in energy development;
          [(6) 1 member appointed by the Secretary of the 
        Interior from recommendations submitted by National 
        environmental organizations;
          [(7) the Secretary of the Interior, or his designee; 
        and
          [(8) the Secretary of Energy, or his designee.
    [(c) Appointments.--Members of the Commission shall be 
appointed not later than 60 days after the date of the 
enactment of this title.
    [(d) Vacancies.--A vacancy in the Commission shall be 
filled in the same manner as the original appointment was made. 
A vacancy in the Commission shall not affect the powers of the 
Commission.
    [(e) Chairperson.--The members of the Commission shall 
elect a Chairperson from among the members of the Commission.
    [(f) Quorum.--Eleven members of the Commission shall 
constitute a quorum, but a lesser number may hold hearings.
    [(g) Organizational Meeting.--The Commission shall hold an 
organizational meeting to establish the rules and procedures of 
the Commission not later than 30 days after the members are 
first appointed to the Commission.
    [(h) Compensation.--Each member of the Commission who is 
not an officer or employee of the United States shall be 
compensated at a rate established by the Commission, not to 
exceed the rate of basic pay payable for level IV of the 
Executive Schedule under section 5315 of title.5, United States 
Code, for each day (including travel time) during which such 
member is engaged in the actual performance of duties as a 
member of the Commission. Each member of the Commission who is 
an officer or employee of the United States shall receive no 
additional compensation.
    [(i) Travel.--While away from their homes or regular places 
of business in the performance of duties for the Commission, 
all members of the Commission shall be allowed travel expenses, 
including per diem in lieu of subsistence, at a rate 
established by the Commission not to exceed the rates 
authorized for employees under sections 5702 and 5703 of title 
5, United States Code.
    [(j) Commission Staff.--
          [(1) Executive Director.--The Commission shall 
        appoint an Executive Director who shall be compensated 
        at a rate established by the Commission not to exceed 
        the rate of basic pay payable for level V of the 
        Executive Schedule under section 5316 of title 5, 
        United States Code.
          [(2) Additional Personnel.--With the approval of the 
        Commission, the Executive Director may appoint and fix 
        the compensation of such additional personnel as the 
        Executive Director considers necessary to carry out the 
        duties of the Commission. Such appointments shall be 
        made in accordance with the provisions of title 5, 
        United States Code, governing appointments in the 
        competitive service, but at rates not to exceed the 
        rate of basic pay payable for level 15 of the General 
        Schedule.
          [(3) Experts and Consultants.--Subject to such rules 
        as may be issued by the Commission, the Chairperson may 
        procure temporary and intermittent services of experts 
        and consultants to the same extent as is authorized by 
        section 3109 of title 5, United States Code, but at 
        rates not to exceed $200 a day for individuals.
          [(4) Personnel detail authorized.--Upon the request 
        of the Chairperson, the head of any Federal agency is 
        authorized to detail, on a reimbursable basis, any of 
        the personnel of such agency to the Commission to 
        assist the Commission in carrying out its duties under 
        this title. Such detail shall be without interruption 
        or loss of civil service status or privilege.
    [(k) Duties of the Commission.--The Commission shall--
          [(1) Develop proposals to address the dual taxation 
        by Indian tribes and States of the extraction of 
        mineral resources on Indian reservations;
          [(2) make recommendations to improve the management, 
        administration, accounting and auditing of royalties 
        associated with the production of oil and gas on Indian 
        reservations;
          [(3) develop alternatives for the collection and 
        distribution of royalties associated with production of 
        oil and gas on Indian reservations;
          [(4) develop proposals on incentives to foster the 
        development of energy resources on Indian reservations;
          [(5) identify barriers or obstacles to the 
        development of energy resources on Indian reservations, 
        and make recommendations designed to foster the 
        development of energy resources on Indian reservations 
        and promote economic development;
          [(6) develop proposals for the promotion of vertical 
        integration of the development of energy resources on 
        Indian reservations; and
          [(7) develop proposals on taxation incentives to 
        foster the development of energy resources on Indian 
        reservations including, but not limited to, investment 
        tax credits and enterprise zone credits.
    [(l) Powers of the Commission.--The powers of the 
Commission shall include the following:
          [(1) For the purpose of carrying out its duties under 
        this section, the Commission may hold hearings, take 
        testimony, and receive evidence at such times and 
        places as the Commission considers appropriate. The 
        Commission may administer oaths or affirmations to 
        witnesses appearing before the Commission.
          [(2) Any member or employee of the Commission may, if 
        authorized by the Commission, take any action which the 
        Commission is authorized to take by this section.
          [(3) The Commission may secure directly from any 
        Federal agency such information as may be necessary to 
        enable the Commission to carry out its duties under 
        this section.
    [(m) Commission Report.--
          [(1) In general.--The Commission shall, within 12 
        months after funds are made available to carry out this 
        section, prepare and transmit to the President, the 
        Committee on Interior and Insular Affairs of the House 
        of Representatives, the Select Committee on Indian 
        Affairs: of the Senate, and the Committee on Energy and 
        Natural Resources of the Senate, a report containing 
        the recommendations and proposals specified in 
        subsection (k).
          [(2) Review and comment.--Prior to submission of the 
        report required under this section, the Chairman shall 
        circulate a draft of the report to Indian tribes and 
        States that have Indian reservations with developable 
        energy resources and other interested tribes and States 
        for review and comment.
    [(n) Authorization of Appropriations.--There are authorized 
to be appropriated to the Commission $1,000,000 to carry out 
this section. Such sum shall remain available, without fiscal 
year limitation, until expended.
    [(o) Termination.--The Commission shall terminate 30 days 
after submitting the final report required by subsection (m).

[SEC. 2606. TRIBAL GOVERNMENT ENERGY ASSISTANCE PROGRAM.

    [(a) Financial Assistance.--The Secretary may grant 
financial assistance to Indian tribal governments, or private 
sector persons working in cooperation with Indian tribal 
governments, to carry out projects to evaluate the feasibility 
of, develop options for, and encourage the adoption of energy 
efficiency and renewable energy projects on Indian 
reservations. Such grants may include the costs of technical 
assistance in resource assessment, feasibility analysis, 
technology transfer, and the resolution of other technical, 
financial, or management issues identified by the applicants 
for such grants.
    [(b) Conditions.--Any applicant for financial assistance 
under this section must evidence coordination and cooperation 
with, and support from, local educational institutions and the 
affected local energy institutions.
    [(c) Considerations.--In determining the amount of 
financial assistance to be provided for a proposed project, the 
Secretary shall consider--
          [(1) the extent of involvement of local educational 
        institutions and local energy institutions;
          [(2) the ease and costs of operation and maintenance 
        of any project contemplated as a part of the project;
          [(3) whether the measure will contribute 
        significantly to the development, or the quality of the 
        environment, of the affected Indian reservations; and
          [(4) any other factors which the Secretary may 
        determine to be relevant to a particular project.
    [(d) Cost-share.--With the exception of grants awarded for 
the purpose of feasibility studies, the Secretary shall require 
at least 20 percent of the costs of any project under this 
section to be provided from non-Federal sources, unless the 
grant recipient is a for-profit private sector institution, in 
which case the Secretary shall require at least 50 percent of 
the costs of any project to be provided from non-Federal 
sources.
    [(e) Authorization of Appropriations.--There are authorized 
to appropriated such sums as are necessary for the development 
and implementation of the program established by this section.]

                       TITLE XXVI--INDIAN ENERGY

SEC. 2601. DEFINITIONS.

    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 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 particular State.
          (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; and
                  (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.
          (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 
                measurement protocols to account and report the 
                quantity of carbon dioxide or other greenhouse 
                gases sequestered in projects that may be 
                implemented on tribal 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).
          (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 evaluating energy development proposals for 
        which the Secretary of Energy may provide a loan 
        guarantee under paragraph (1), the Secretary of Energy 
        shall give priority to any project that uses a new 
        technology, such as coal gasification, carbon capture 
        and sequestration, or renewable energy-based 
        electricity generation, if competing proposals are 
        similar with respect to the level at which the 
        proposals meet or exceed the criteria established by 
        the Secretary of Energy for the loan guarantee program.
          (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 ormore 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 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 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 a tribal 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 1 year 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 theSecretary 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 the 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).
          (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 
                resourceagreement 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 feasibility of blending wind energy 
        and hydropower generated from the Missouri River dams 
        operated by the Army Corps of Engineers;
          (2) review historical and projected requirements for, 
        and patterns of availability and use 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
          (5) include an independent tribal engineer as a study 
        team member.
    (c) Report.--Not later than 1 year after the date of 
enactment of the Energy Policy Act of 2005, 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 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 evaluation of whether a combined wind and 
        hydropower system can reduce reservoir fluctuation, 
        enhance efficient and reliable energy production, and 
        provide Missouri River management flexibility;
          (3) recommendations for a demonstration project to be 
        carried out by the Western Area Power Administration, 
        in partnership with an Indian tribal government or 
        tribal energy resource development organization, to 
        demonstrate the feasibility and potential of using wind 
        energy produced on Indian land to supply firming energy 
        to the Western Area Power Administration or any other 
        Federal power marketing agency; and
          (4) an identification of--
                  (A) the economic and environmental costs of, 
                or benefits to be realized through, a Federal-
                tribal partnership; and
                  (B) the manner in which a Federal-tribal 
                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.
                              ----------                              

FARM SECURITY AND RURAL INVESTMENT ACT OF 2002--PUBLIC LAW 107-171, (7 
                         U.S.C. 8108(a)(3)(A))

                            TITLE IX--ENERGY

                           BIOENERGY PROGRAM

    Sec. 9010
    (a) * * *
          (3) Eligible commodity.--The term ``eligible 
        commodity'' means--
                  (A) wheat, corn, grain sorghum, barley, oats, 
                rice, soybeans, sunflower seed, rapeseed, 
                canola, safflower, flaxseed, mustard, crambe, 
                sesame seed, potatoes, sugarcane, sugar beets, 
                products of sugarcane or sugar beets, and 
                cottonseed;
                              ----------                              

GEOTHERMAL STEAM ACT OF 1970--PUBLIC LAW 91-581, AS AMENDED (30 U.S.C. 
                             1001 ET SEQ.)

    AN ACT To authorize the Secretary of the Interior to make 
disposition of [geothermal steam and associated geothermal 
resources] geothermal resources, and for other purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, [That this]

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Geothermal Steam Act of 
1970''.
    [Sec. 2. As]

SEC. 2. DEFINITIONS.

    As used in this Act, the term--

           *       *       *       *       *       *       *

    (c) ``[geothermal steam and associated geothermal 
resources] geothermal resources'' means (i) all products of 
geothermal processes, embracing indigenous steam, hot water and 
hot brines; (ii) steam and other gases, hot water and hot 
brines resulting from water, gas, or other fluids artificially 
introduced into geothermal formations; (iii) heat or other 
associated energy found in geothermal formations; and (iv) any 
byproduct derived from;

           *       *       *       *       *       *       *

    [(e) ``known geothermal resources area'' means an area in 
which the geology, nearby discoveries, competitive interests, 
or other indicia would, in the opinion of the Secretary, 
engender a belief in men who are experienced in the subject 
matter that the prospects for extraction of geothermal steam or 
associated geothermal resources are good enough to warrant 
expenditures of money for that purpose.] (e) ``direct use'' 
means use of geothermal resources for commercial, residential, 
agricultural, public facilities, or other energy needs other 
than the commercial production of electricity; and

           *       *       *       *       *       *       *

    [Sec. 3. Subject]

SEC. 3. LANDS SUBJECT TO GEOTHERMAL LEASING.

    Subject to the provisions of section 15 of this Act, the 
Secretary of the Interior may issue leases for the development 
and utilization of [geothermal steam and associated geothermal 
resources] geothermal resources (1) in lands administered by 
him, including public, withdrawn, and acquired lands, (2) in 
any national forest or other lands administered by the 
Department of Agriculture through the Forest Service, including 
Public, withdrawn, and acquired lands, and (3) in lands which 
have been conveyed by the United States subject to a 
reservation to the United States of the [geothermal steam and 
associated geothermal resources] geothermal resources therein.
    [Sec. 4. If lands to be leased under this Act are within 
any known geothermal resources area, they shall be leased to 
the highest responsible qualified bidder by competitive bidding 
under regulations formulated by the Secretary. If the lands to 
be leased are not within any known geothermal resources area, 
the qualified person first making application for the lease 
shall be entitled to a lease of such lands without competitive 
bidding. Notwithstanding the foregoing, at any time within one 
hundred and eighty days following the effective date of this 
Act:]
    [(a) with respect to all lands which were on September 7, 
1965, subject to valid leases or permits issued under the 
Mineral Leasing Act of February 25, 1920, as amended (30 U.S.C. 
181 et seq.), or under the Mineral Leasing Act of Acquired 
Lands, as amended (30 U.S.C. 351, 358), or to existing mining 
claims located on or prior to September 7, 1965, the lessees or 
permittees or claimants or their successors in interest who are 
qualified to hold geothermal leases shall have the right to 
convert such leases or permits or claims to geothermal leases 
covering the same lands;]
    [(b) where there are conflicting claims, leases, or permits 
therefore embracing the same land, the person who first was 
issued a lease or permit, or who first recorded the mining 
claim shall be entitled to first consideration;]
    [(c) with respect to all lands which were on September 7, 
1965, the subject of applications for leases or permits under 
the above Acts, the applicants may convert their applications 
to applications for geothermal leases having priorities dating 
from the time of filing of such applications under such Acts;]
    [(d) no person shall be permitted to convert mineral 
leases, permits, applications therefore, or mining claims for 
more than 10,240 acres;]
    [(e) the conversion of leases, permits, and mining claims 
and applications for leases and permits shall be accomplished 
in accordance with regulations prescribed by the Secretary. No 
right to conversion to a geothermal lease shall accrue to any 
person under this section unless such person shows to the 
reasonable satisfaction of the Secretary that substantial 
expenditures for the exploration, development, or production of 
geothermal steam have been made by the applicant who is seeking 
conversion, on the lands for which a lease is sought or on 
adjoining, adjacent, or nearby Federal or non-Federal lands; 
and]
    [(f) with respect to lands within any known geothermal 
resources area and which are subject to a right to conversion 
to a geothermal lease, such lands shall be leased by 
competitive bidding: Provided, That the competitive geothermal 
lease shall be issued to the person owning the right to 
conversion to a geothermal lease if he makes payment of an 
amount equal to the highest bona fide bid for the competitive 
geothermal lease, plus the rental for the first year, within 
thirty days after he receives written notice from the Secretary 
of the amount of the highest bid.]

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.
    (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 necessary 
        to process applications for geothermal leasing pending 
        on May 19, 2005.
          (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) 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 120 days before the date of the 
        issuance of the lease;
          (2) does not receive during the 120-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 land to be leased.
    (f) 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.
    [Sec. 5. Geothermal]

SEC. 5. RENTS AND ROYALTIES.

    (a) In General.--Geothermal leases shall provide for--
    [(a)] (1) a royalty of not less than 10 per centum or more 
than 15 per centum of the amount or value of steam, or any 
other form of heat or energy derived from production under the 
lease and sold or utilized by the lessee or reasonably 
susceptible to sale or utilization by the lessee;
    [(b)(2) a royalty of not more than 5 per centum of the 
value of any byproduct derived from production under the lease 
and sold or utilized or reasonably susceptible of sale or 
utilization by the lessee, except that as to any byproduct 
which is a mineral named in section 1 of the Mineral Leasing 
Act of February 25, 1920, as amended (30 U.S.C. 181), the rate 
of royalty for such mineral shall be the same as that provided 
in that Act and the maximum rate of royalty for such mineral 
shall not exceed the maximum royalty applicable under that 
Act;] (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;
    [(c)(3) payment in advance of an annual rental of not less 
than $1 per acre or fraction thereof for each year of the 
lease. If there is no well on the leased lands capable of 
producing geothermal resources in commercial quantities, the 
failure to pay rental on or before the anniversary date shall 
terminate the lease by operation of law: Provided, however, 
That whenever the Secretary discovers that the rental payment 
due under a lease is paid timely but the amount of the payment 
is deficient because of an error or other reason and the 
deficiency is nominal, as determined by the Secretary pursuant 
to regulations prescribed by him, he shall notify the lessee of 
the deficiency and such lease shall not automatically terminate 
unless the lessee fails to pay the deficiency within the period 
prescribed in the notice: Provided further, That where any 
lease has been terminated automatically by operation of law 
under this section for failure to pay rental timely and it is 
shown to the satisfaction of the Secretary of the Interior that 
the failure to pay timely the lease rental was justifiable or 
not due to a lack of reasonable diligence, he in his judgment 
may reinstate the lease if--
    [(1)(A) a petition for reinstatement, together with the 
required rental, is filed with the Secretary of the Interior; 
and
    [(2)(B) no valid lease has been issued affecting any of the 
lands in the terminated lease prior to the filing of the 
petition for reinstatement;] (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; and
    [(d)] (4) a minimum royalty of $2 per acre or fraction 
thereof in lieu of rental payable at the expiration of each 
lease year for each producing lease, commencing with the lease 
year beginning on or after the commencement of production in 
commercial quantities. For the purpose of determining royalties 
hereunder the value of any geothermal steam and byproduct used 
by the lessee and not sold and reasonably susceptible of sale 
shall be determined by the Secretary, who shall take into 
consideration the cost of exploration and production and the 
economic value of the resource in terms of its ultimate 
utilization.
    (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 
                or any other basis that the Secretary finds 
                appropriate under the circumstances; and
                  (B) shall ensure a fair return to the United 
                States for use of the resource.
          (3) State or local governments.--If a State or local 
        government is the lessee and uses geothermal resources 
        without sale and for purposes other than commercial 
        generation of electricity, the Secretary shall charge 
        only a nominal fee for use of the resource.
    (c) 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.
    (d) 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. 6. (a) Geothermal]

SEC. 6. TERMS.

    (a) Geothermal leases shall be for a primary term of ten 
years. If geothermal steam is produced or utilized in 
commercial quantities within this term, such lease shall 
continue for so long thereafter as geothermal steam is produced 
or utilized in commercial quantities, but such continuation 
shall not exceed an additional forty years.

           *       *       *       *       *       *       *

    (f) Minerals locatable under the mining laws of the United 
States in lands subject to a geothermal lease issued under the 
provisions of this Act which are not associated with the 
[geothermal steam and associated geothermal resources] 
geothermal resources of such lands as defined in section 2(c) 
herein shall be locatable under said mining laws in accordance 
with the principles of the Multiple Mineral Development Act (68 
Stat. 708; found in 30 U.S.C. 521 et seq.).

           *       *       *       *       *       *       *

      (i)(1) To meet the payments in lieu of commercial 
quantities production requirement referred to in subsection 
(g)(1)(A) the lessee must agree to the modification of the 
terms and conditions of the lease to require annual payments to 
the Secretary in accordance with this subsection.
      [(2) Payments under this subsection shall commence with 
the first year of the extension. Payments shall be equal to the 
following:
          [(A) In each of the first through the fifth payment 
        years, at least $3.00 per acre or fraction thereof, of 
        lands under lease.
          [(B) In each of the sixth through the tenth payment 
        years, at least $6.00 per acre or fraction thereof, of 
        lands under lease.]
          (2) The Secretary shall, by regulation, establish 
        payments under this subsection at levels that ensure 
        the diligent development of the lease.

           *       *       *       *       *       *       *

    [Sec. 7. A geothermal]

SEC. 7. ACREAGE OF GEOTHERMAL LEASE.

    A geothermal lease shall embrace a reasonably compact area 
of not more than two thousand five hundred and sixty acres, 
except where a departure therefrom is occasioned by an 
irregular subdivision or subdivisions. No person, association, 
or corporation, except as otherwise provided in this Act, shall 
take, hold, own, or control at one time, whether acquired 
directly from the Secretary under this Act or otherwise, any 
direct or indirect interest in Federal geothermal leases in any 
one State exceeding twenty thousand four hundred and eighty 
acres, including leases acquired under the provisions of 
section 4 of this Act.
    At any time after fifteen years from the effective date of 
this Act the Secretary, after public hearings, may increase 
this maximum holding in any one State by regulation, not to 
exceed fifty-one thousand two hundred acres.
    [Sec. 8. (a) The]

SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDITIONS.

    (a) The Secretary may readjust the terms and conditions, 
except as otherwise provided herein, of any geothermal lease 
issued under this Act at not less than ten-year intervals 
beginning ten years after the date the geothermal steam is 
produced, as determined by the Secretary. Each geothermal lease 
issued under this Act shall provide for such readjustment. The 
Secretary shall give notice of any proposed readjustment of 
terms and conditions, and, unless the lessee files with the 
Secretary objection to the proposed terms or relinquishes the 
lease within thirty days after receipts of such notice, the 
lessee shall conclusively be deemed to have agreed with such 
terms and conditions. If the lessee files objections, and no 
agreement can be reached between the Secretary and the lessee 
within a period of not less than sixty days, the lease may be 
terminated by either party.

           *       *       *       *       *       *       *

    [Sec. 9. If]

SEC. 9. BYPRODUCTS.

    If the production, use, or conversion of geothermal steam 
is susceptible of producing a valuable byproduct or byproducts, 
including commercially demineralized water for beneficial uses 
in accordance with applicable State water laws, the Secretary 
shall require substantial beneficial production or use thereof 
unless, in individual circumstances he modifies or waives this 
requirement in the interest of conservation of natural 
resources or for other reasons satisfactory to him. However, 
the production or use of such byproducts shall be subject to 
the rights of the holders of preexisting leases, claims, or 
permits covering the same land or the same minerals, if any.
    [Sec. 10. The]

SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS.

    The holder of any geothermal lease at any time may make and 
file in the appropriate land office a written relinquishment of 
all rights under such lease or of any legal subdivision of the 
area covered by such lease. Such relinquishment shall be 
effective as of the date of its filing. Thereupon the lessee 
shall be released of all obligations thereafter accruing under 
said lease with respect to the lands relinquished, but no such 
relinquishment shall release such lessee, or his surety or 
bond, from any liability for breach of any obligation of the 
lease, other than an obligation to drill, accrued at the date 
of the relinquishment, or from the continued obligation, in 
accordance with the applicable lease terms and regulations, (1) 
to make payment of all accrued rentals any royalties, (2) to 
place all wells on the relinquished lands in condition for 
suspension or abandonment, and (3) to protect or restore 
substantially the surface and surface resources.
    [Sec. 11. The]

SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION.

    The Secretary, upon application by the lessee, may 
authorize the lessee to suspend operations and production on a 
producing lease and he may, on his own motion, in the interest 
of conservation suspend operations on any lease but in either 
case he may extend the lease term for the period of any 
suspension, and he may waive, suspend, or reduce the rental or 
royalty required in such lease.
    [Sec. 12. Leases]

SEC. 12. TERMINATION OF LEASES.

    Leases may be terminated by the Secretary for any violation 
of the regulations or lease terms after thirty days notice 
provided that such violation is not corrected within the notice 
period, or in the event the violation is such that it cannot be 
corrected within the notice period then provided that lessee 
has not commenced in good faith within said notice period to 
correct such violation and thereafter to proceed diligently to 
correct such violation. Lessee shall be entitled to a hearing 
on the matter of such claimed violation or proposed termination 
of lease if request for a hearing is made to the Secretary 
within the thirty-day period after notice. The period for 
correction of violation or commencement to correct such 
violation of regulations or of lease terms, as aforesaid, shall 
be extended to thirty days after the Secretary's decision after 
such hearing if the Secretary shall find that a violation 
exists.
    [Sec. 13. The]

SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENTAL OR ROYALTY.

    The Secretary may waive, suspend, or reduce the rental or 
royalty for any lease or portion thereof in the interests of 
conservation and to encourage the greatest ultimate recovery of 
geothermal resources, if he determines that this is necessary 
to promote development or that the lease cannot be successfully 
operated under the lease terms.
    [Sec. 14. Subject]

SEC. 14. SURFACE LAND USE.

    Subject to the other provisions of this Act, a lessee shall 
be entitled to use so much of the surface of the land covered 
by his geothermal lease as may be found by the Secretary to be 
necessary for the production, utilization, and conservation of 
geothermal resources.
    [Sec. 15. (a) Geothermal]

SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING.

    (a) Geothermal leases for lands withdrawn or acquired in 
aid of functions of the Department of the Interior may be 
issued only under such terms and conditions as the Secretary 
may prescribe to insure adequate utilization of the lands for 
the purposes for which they were withdrawn or acquired.

           *       *       *       *       *       *       *

    [Sec. 16. Leases]

SEC. 16. REQUIREMENT FOR LESSEES.

    Leases under this Act may be issued only to citizens of the 
United States, associations of such citizens, corporations 
organized under the laws of the United States or of any State 
or the District of Columbia, or governmental units, including, 
without limitation, municipalities.
    [Sec. 17. Administration]

SEC. 17. ADMINISTRATION.

    Administration of this Act shall be under the principles of 
multiple use of lands and resources, and geothermal leases 
shall, insofar as feasible, allow for coexistence ofother 
leases of the same lands for deposits of minerals under the laws 
applicable to them, for the location and production of claims under the 
mining laws, and for other uses of the areas covered by them. 
Operations under such other leases or for such other uses, however, 
shall not unreasonably interfere with or endanger operations under any 
lease issued pursuant to this Act, nor shall operations under leases so 
issued unreasonably interfere with or endanger operations under any 
lease, license, claim, or permit issued pursuant to the provisions of 
any other Act.
    [Sec. 18. For the purpose of properly conserving the 
natural resources of any geothermal pool, field, or like area, 
or any part thereof, lessees thereof and their representatives 
may unite with each other, or jointly or separately with 
others, in collectively adopting and operating under a 
cooperative or unit plan of development or operation of such 
pool, field, or like area, or any part thereof, whenever this 
is determined and certified by the Secretary to be necessary or 
advisable in the public interest. The Secretary may in his 
discretion and with the consent of the holders of leases 
involved, establish, alter, change, revoke, and make such 
regulations with reference to such leases in connection with 
the institution and operation of any such cooperative or unit 
plan as he may deem necessary or proper to secure reasonable 
protection of the public interest. He may include in geothermal 
leases a provision requiring the lessee to operate under such a 
reasonable cooperative or unit plan, and he may prescribe such 
a plan under which such lessee shall operate, which shall 
adequately protect the rights of all parties in interest, 
including the United States. Any such plan may, in the 
discretion of the Secretary, provide for vesting in the 
Secretary or any other person, committee, or Federal or State 
agency designated therein, authority to alter or modify from 
time to time the rate of prospecting and development and the 
quantity and rate of production under such plan. All leases 
operated under any such plan approved or prescribed by the 
Secretary shall be excepted in determining holdings or control 
for the purposes of section 7 of this Act.
    No more than five years after approval of any cooperative 
or unit plan of development or operation, and at least every 
five years thereafter, the Secretary shall review each such 
plan and, after notice and opportunity for comment, eliminate 
from inclusion in such plan any lease or part of a lease not 
regarded as reasonably necessary to cooperative or unit 
operations under the plan. In the case of a cooperative or unit 
plan approved before the enactment of the Geothermal Steam Act 
Amendments of 1988, the Secretary shall complete such review 
and elimination within 5 years after the enactment of such Act. 
Such elimination shall be based on scientific evidence, and 
shall occur only when it is determined by the Secretary to be 
for the purpose of conserving and properly managing the 
geothermal resource. Any lease or part of a lease so eliminated 
shall be eligible for an extension under subsection (c) or (g) 
of section 6 if it separately meets the requirements for such 
an extension.
    When separate tracts cannot be independently developed and 
operated in conformity with an established well-spacing or 
development program, any lease, or a portion thereof, may be 
pooled with other lands, whether or not owned by the United 
States, under a communitization or drilling agreement providing 
for an apportionment of production or royalties among the 
separate tracts of land comprising the drilling or spacing unit 
when determined by the Secretary to be in the public interest, 
and operations or production pursuant to such an agreement 
shall be deemed to be operations or production as to each lease 
committed thereto.
    The Secretary is hereby authorized, on such conditions as 
he may prescribe, to approve operating, drilling, or 
development contracts made by one or more lessees of geothermal 
leases, with one or more persons, associations, or corporations 
whenever, in his discretion, the conservation of natural 
products or the public convenience or necessity may require or 
the interests of the United States may be best served thereby. 
All leases operated under such approved operating, drilling, or 
development contracts, and interests thereunder, shall be 
excepted in determining holdings or control under section 7 of 
this Act.]

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 steam and associated 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 comprising the 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. 19. Upon]

SEC. 19. DATA FROM FEDERAL AGENCIES.

    Upon request of the Secretary, other Federal departments 
and agencies shall furnish him with any relevant data then in 
their possession or knowledge concerning or having bearing upon 
fair and adequate charges to be made for geothermal steam 
produced or to be produced for conversion to electric power or 
other purposes. Data given to any department or agency as 
confidential under law shall not be furnished in any fashion 
which identifies or tends to identify the business entity whose 
activities are the subject of such data or the person or 
persons who furnished such in information.
    [Sec. 20. Subject]

SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM SALES, BONUSES, 
                    ROYALTIES, AND RENTALS.

    Subject to the provisions of section 35(b) of the Mineral 
Leasing Act (30 U.S.C. 191(b)), all moneys received from the 
sales, bonuses, royalties and rentals under the provisions of 
this Act, including the payments referred to in section 6(i), 
shall be disposed of in the same manner as such moneys received 
pursuant to section 35 of the Mineral Leasing Act or pursuant 
to section 6 of the Mineral Leasing Act for Acquired Lands, as 
the case may be.
    [Sec. 21. (a) Within one hundred and twenty days after the 
effective date of this Act, the Secretary shall cause to be 
published in the Federal Register a determination of all lands 
which were included within any known geothermal resources area 
on the effective date of the Act. He shall likewise publish in 
the Federal Register from time to time his determination of 
other known geothermal resources areas specifying in each case 
the date the lands were included in such area; and
    [(b) Geothermal]

SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVATION OF MINERAL 
                    RIGHTS.

    Geothermal resources in lands the surface of which has 
passed from Federal ownership but in which the minerals have 
been reserved to the United States shall not be developed or 
produced except under geothermal leases made pursuant to this 
Act. If the Secretary of the Interior finds that such 
development is imminent, or that production from a well 
heretofore drilled on such lands in imminent, he shall so 
report to the Attorney General, and the Attorney General is 
authorized and directed to institute an appropriate proceeding 
in the United States district court of the district in which 
such lands are located, to quiet the title of the United States 
in such resources, and if the court determines that the 
reservation of minerals to the United States in the lands 
involved included the geothermal resources, to enjoin their 
production otherwise than under the terms of this Act: 
Provided, That upon an authoritative judicial determination 
thatFederal mineral reservation does not include [geothermal 
steam and associated geothermal resources] geothermal resources the 
duties of the Secretary of the Interior to report and of the Attorney 
General to institute proceedings, as hereinbefore set forth, shall 
cease.
    [Sec. 22. Nothing]

SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS.

    Nothing in this Act shall constitute an express or implied 
claim or denial on the part of the Federal Government as to its 
exemption from State water laws.
    [Sec. 23. (a) All]

SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY.

    (a) All leases under this Act shall be subject to the 
condition that the lessee will, in conducting his exploration, 
development and producing operations, use all reasonable 
precautions to prevent waste of [geothermal steam and 
associated geothermal resources] geothermal resources developed 
in lands leased.
    (b) Rights to develop and utilize [geothermal steam and 
associated geothermal resources] geothermal resources 
underlying lands owned by the United States may be acquired 
solely in accordance with the provisions of this Act.
    [Sec. 24. The]

SEC. 24. RULES AND REGULATIONS.

    The Secretary shall prescribe such rules and regulations as 
he may deem appropriate to carry out the provisions of this 
Act. Such regulations may include, without limitation, 
provisions for (a) the prevention of waste, (b) development and 
conservation of geothermal and other natural resources, (c) the 
protection of the public interest, (d) assignment, segregation, 
extension of terms, relinquishment of leases, development 
contracts, unitization, pooling, and drilling agreements, (e) 
compensatory royalty agreements, suspension of operations or 
production, and suspension or reduction of rentals or 
royalties, (f) the filing of surety bonds to assure compliance 
with the terms of the lease and to protect surface use and 
resources, (g) use of the surface by a lessee of the lands 
embraced in his lease, (h) the maintenance by the lessee of an 
active development program, and (i) protection of water quality 
and other environmental qualities.
    [Sec. 25. As]

SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER CERTAIN OTHER LAWS.

    As to any land subject to geothermal leasing under section 
3 of this Act, all laws which either (a) provide for the 
disposal of land by patent or other form of conveyance or by 
grant or by operation of law subject to a reservation of any 
mineral or (b) prevent or restrict the disposal of such land 
because of the mineral character of the land, shall hereafter 
be deemed to embrace [geothermal steam and associated 
geothermal resources] geothermal resources as a substance which 
either must be reserved or must prevent or restrict the 
disposal of such land, as the case may be. This section shall 
not be construed to affect grants, patents, or other forms of 
conveyances made prior to the date of enactment of this Act.
    [Sec. 26. The]

SEC. 26. AMENDMENT.

    The first two clauses in section 11 of the Act of August 
13, 1954 (68 Stat. 708, 716), are amended to read as follows:
    ``As used in this Act, ``mineral leasing laws'' shall mean 
the Act of February 25, 1920 (41 Stat. 437); the Act of April 
17, 1926 (44 Stat. 301); the Act of February 7, 1927 (44 Stat. 
1057); Geothermal Steam Act of 1970, and all Acts heretofore or 
hereafter enacted which are amendatory of or supplementary to 
any of the foregoing Acts; ``Leasing Act minerals'' shall mean 
all minerals which, upon the effective date of this Act, are 
provided in the mineral leasing laws to be disposed of 
thereunder and all [geothermal steam and associated geothermal 
resources] geothermal resources which, upon the effective date 
of the Geothermal Steam Act of 1970, are provided in that Act 
to be disposed of thereunder;''.
    [Sec. 27. The]

SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL RIGHTS.

    The United States reserves the ownership of and the right 
to extract under such rules and regulations as the Secretary 
may prescribe oil, hydrocarbon gas, and helium from all 
[geothermal steam and associated geothermal resources] 
geothermal resources produced from lands leased under this Act 
in accordance with presently applicable laws: Provided, That 
whenever the right to extract oil, hydrocarbon gas, and helium 
from [geothermal steam and associated geothermal resources] 
geothermal resources produced from such lands is exercised 
pursuant to this section, it shall be exercised so as to cause 
no substantial interference with the production of [geothermal 
steam and associated geothermal resources] geothermal resources 
from such lands.
    [Sec. 28. (a)(1) The]

SEC. 28. SIGNIFICANT THERMAL FEATURES.

    (a)(1) The Secretary shall maintain a list of significant 
thermal features, as defined in section 2(f), within units of 
the National Park System, including but not limited to the 
following units:
          (A) Mount Rainier National Park.

           *       *       *       *       *       *       *

    (d) With respect to all leases or drilling permits issued, 
extended, renewed or modified under this Act, the Secretary 
shall include stipulations in such leases and permits necessary 
to protect significant thermal features within units of the 
National Park System where the Secretary determines that, based 
on scientific evidence, the exploration, development or 
utilization of the land subject to the lease or drilling permit 
is reasonably likely to adversely affect any such significant 
thermal feature. Stipulations shall include, but not be limited 
to--
          (1) requiring the lessee to reinject geothermal 
        fluids into the rock formations from which they 
        originate;
          (2) requiring the lessee to report annually to the 
        Secretary on activities taken on the lease;
          (3) requiring the lessee to continuously monitor 
        [geothermal steam and associated geothermal resources] 
        geothermal resources production and injection wells; 
        and

           *       *       *       *       *       *       *

    [Sec. 29. The]

SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING.

    The Secretary shall not issue any lease under this Act on 
those lands subject to the prohibition provided under section 
43 of the Mineral Leasing Act.
                              ----------                              

 FEDERAL POWER ACT--ACT OF JUNE 10, 1920, CHAPTER 285, AS AMENDED (16 
                           U.S.C. 791A-825R)

PART I

           *       *       *       *       *       *       *

    Sec. 3. The words defined in this section shall have the 
following meanings for the purpose of this Act, to wit:

           *       *       *       *       *       *       *

          (17)(A) * * *
          [(C) ``qualifying small power production facility'' 
        means a small power production facility--
                  (i) which the Commission determines, by rule, 
                meets such requirements (including requirements 
                respecting fuel use, fuel efficiency, and 
                reliability) as the Commission may, by rule, 
                prescribe; and
                  (ii) which is owned by a person not primarily 
                engaged in the generation or sale of electric 
                power (other than electric power solely from 
                cogeneration facilities or small power 
                production facilities);]
          (C) ``qualifying small power production facility'' 
        means a small power production facility that the 
        Commission determines, by rule, meets such requirements 
        (including requirements respecting fuel use, fuel 
        efficiency, and reliability) as the Commission may, by 
        rule, prescribe;

           *       *       *       *       *       *       *

          (18)(A) ``cogeneration facility'' means a facility 
        which produces--
                  (i) electric energy, and
                  (ii) steam or forms of useful energy (such as 
                heat) which are used for industrial, 
                commercial, heating, or cooling purposes;
          [(B) ``qualifying cogeneration facility'' means a 
        cogeneration facility which--
                  (i) the Commission determines, by rule, meets 
                such requirements (including requirements 
                respecting minimum size, fuel use, and fuel 
                efficiency) as the Commission may, by rule, 
                prescribe; and
                  (ii) is owned by a person not primarily 
                engaged in the generation or sale of electric 
                power (other than electric power solely from 
                cogeneration facilities or small power 
                production facilities);
          (B) ``qualifying cogeneration facility'' means a 
        cogeneration facility that the Commission determines, 
        by rule, meets such requirements (including 
        requirements respecting minimum size, fuel use, and 
        fuel efficiency) as the Commission may, by rule, 
        prescribe;]

           *       *       *       *       *       *       *

          [(22) ``electric utility'' means any person or State 
        agency (including any municipality) which sells 
        electric energy; such term includes the Tennessee 
        Valley Authority, but does not include any Federal 
        power marketing agency.]
          [(23) Transmitting utility.--The term ``transmitting 
        utility'' means any electric utility, qualifying 
        cogeneration facility, qualifying small power 
        production facility, or Federal power marketing agency 
        which owns or operates electric power transmission 
        facilities which are used for the sale of electric 
        energy at wholesale.]
          (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.

           *       *       *       *       *       *       *

          (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 thetransmission 
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.

           *       *       *       *       *       *       *

    Sec. 4. * * *
    (e) To issue licenses to citizens of the United States, or 
to any association of such citizens, or to any corporation 
organized under the laws of the United States or any State 
thereof, or to any State or municipality for the purpose of 
constructing, operating, and maintaining dams, water conduits, 
reservoirs, power houses, transmission lines, or other project 
works necessary or convenient for the development and 
improvement of navigation and for the development, 
transmission, and utilization of power across, along, from or 
in any of the streams or other bodies of water over which 
Congress has jurisdiction under its authority to regulate 
commerce with foreign nations and among the several States, or 
upon any part of the public lands and reservations of the 
United States (including the Territories), or for the purpose 
of utilizing the surplus water or water power from any 
Government dam, except as herein provided: Provided, That 
licenses shall be issued within any reservation only after a 
finding by the Commission that the license will not interfere 
or be inconsistent with the purpose for which such reservation 
was created or acquired, and shall be subject to and contain 
such conditions as the Secretary of the department under whose 
supervision such reservation falls shall deem necessary for the 
adequate protection and utilization of such reservation. The 
license applicant 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 within a time frame established by the Commission for 
each license proceeding. Within 90 days of the date of 
enactment of this Act, 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. 
Provided further, That no license affecting the navigable 
capacity of any navigable waters of the United States shall be 
issued until the plans of the dam or other structures affecting 
navigation have been approved by the Chief of Engineers and the 
Secretary of the Army.

           *       *       *       *       *       *       *

    Sec. 18. The Commission shall require the construction, 
maintenance, and operation by a licensee at its own expense of 
such lights and signals as may be directed by the Secretary of 
the Department in which the Coast Guard is operating, and such 
fishways as may be prescribed by the Secretary of the Interior 
or the Secretary of Commerce. The license applicant 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 within a time frame 
established by the Commission for each license proceeding. 
Within 90 days of the date of enactment of this Act, 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. The operation of any 
navigation facilities which may be constructed as a part of or 
in connection with any dam or diversion structure built under 
the provisions of this Act, whether at the expense of a 
licensee hereunder or of the United States, shall at all times 
be controlled by such reasonable rules and regulations in the 
interest of navigation, including the control of the level of 
the pool caused by such dam or diversion structure as may be 
made from time to time by the Secretary of the Army, and for 
willful failure to comply with any such rule or regulation such 
licensee shall be deemed guilty of a misdemeanor, and upon 
conviction thereof shall be punished as provided in section 316 
hereof.

           *       *       *       *       *       *       *

SEC. 32. ALASKA STATE JURISDICTION OVER SMALL HYDROELECTRIC PROJECTS.

    Sec. (a). * * *
          (3)(C) except as provided in subsection (j), 
        conditions for the protection, mitigation, and 
        enhancement of fish and wildlife based on 
        recommendations received pursuant to the Fish and 
        Wildlife Coordination Act (16 U.S.C. 661 et seq.) from 
        the National Marine Fisheries Service, the United Sates 
        Fish and Wildlife Service, and State fish and wildlife 
        agencies.

           *       *       *       *       *       *       *

    (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. 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) the Secretary concurs with the license 
                applicant's judgment that the alternative 
                condition will either--
                          (i) cost significantly less to 
                        implement; or
                          (ii) result in improved operation of 
                        the project works for electricity 
                        production, as compared to the 
                        condition initially deemed necessary by 
                        the Secretary.
          (3) The Secretary concerned shall submit into the 
        public record of the Commission proceeding with any 
        condition under section 4(e) or alternative condition 
        it accepts under this section, a written statement 
        explaining the basis for such condition, and reason for 
        not accepting any alternative condition under this 
        section. The written statement must demonstrate that 
        the Secretary gave equal consideration to the effects 
        of the condition adopted and alternatives not accepted 
        on energy supply, distribution, cost, and use; flood 
        control; navigation; water supply; and air quality (in 
        addition to the preservation of other aspects of 
        environmental quality); based on such information as 
        may be available to the Secretary, including 
        information voluntarily provided in a timely manner by 
        the applicant and others. The Secretary shall also 
        submit, together with the aforementioned written 
        statement, all studies, data, and other factual 
        information available to the Secretary and relevant to 
        the Secretary's decision.
          (4) If the Secretary does not accept an applicant's 
        alternative condition under this section, and the 
        Commission finds that the Secretary's condition would 
        be inconsistent with the purposes of this part, or 
        other applicable law, the Commission may refer the 
        dispute to the Commission's Dispute Resolution Service. 
        The Dispute Resolution Service shall consult with the 
        Secretary and the Commission and issue a non-binding 
        advisory within 90 days. The Secretary may accept the 
        Dispute Resolution Service advisory unless the 
        Secretary finds that the recommendation will not 
        adequately protect the reservation. The Secretary shall 
        submit the advisory and the Secretary's final written 
        determination into the record of the Commission's 
        proceeding.
    (b) Alternative Prescriptions--
          (1) Whenever the Secretary of the Interior or the 
        Secretary of Commerce prescribes a fishway under 
        section 18, the license applicant or any other party to 
        the 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) the Secretary concurs with the license 
                applicant's judgment that the alternative 
                prescription will either--
                          (i) cost significantly less to 
                        implement; or
                          (ii) result in improved operation of 
                        the project works for electricity 
                        production, as compared to the fishway 
                        initially deemed necessary by the 
                        Secretary.
          (3) The Secretary concerned shall submit into the 
        public record of the Commission proceeding with any 
        prescription under section 18 or alternative 
        prescription it accepts under this section, a written 
        statement explaining the basis for such prescription, 
        and reason for not accepting any alternative 
        prescription under this section. The written statement 
        mustdemonstrate 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.
          (4) If the Secretary concerned does not accept an 
        applicant's alternative prescription under this 
        section, and the Commission finds that the Secretary's 
        prescription would be inconsistent with the purposes of 
        this part, or other applicable law, the Commission may 
        refer the dispute to the Commission's Dispute 
        Resolution Service. The Dispute Resolution Service 
        shall consult with the Secretary and the Commission and 
        issue a non-binding advisory within 90 days. The 
        Secretary may accept the Dispute Resolution Service 
        advisory unless the Secretary finds that the 
        recommendation will not adequately protect the fish 
        resources. The Secretary shall submit the advisory and 
        the Secretary's final written determination into the 
        record of the Commission's proceeding.

           *       *       *       *       *       *       *

PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE 
                                COMMERCE

        DECLARATION OF POLICY; APPLICATION OF PART; DEFINITIONS

    Section 201. * * *
    (b) * * *
          (2) [The] Notwithstanding section 201(f), the 
        provisions of sections [210, 211, and 212] 203(a)(2), 
        206(e), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 
        220, 221, 222, and 223 of this title shall apply to the 
        entities described in such provisions, and such 
        entities shall be subject to the jurisdiction of the 
        Commission for purposes of carrying out such provisions 
        and for purposes of applying the enforcement 
        authorities of this chapter with respect to such 
        provisions. Compliance with any order or rule of the 
        Commission under the provisions of sections [210 or 
        211] 203(a)(2), 206(e), 210, 211, 211A, 212, 215, 216, 
        217, 218, 219, 220, 221, 222, and 223 of this title, 
        shall not make an electric utility or other entity 
        subject to the jurisdiction of the Commission for any 
        purposes other than the purposes specified in the 
        preceding sentence.

           *       *       *       *       *       *       *

    (e) The term ``public utility'' when used in this 
subchapter and subchapter III of this chapter means any person 
who owns or operates facilities subject to the jurisdiction of 
the Commission under this subchapter (other than facilities 
subject to such jurisdiction solely by reason of section [210, 
211, or 212] 206(e), 206(f), 210, 211, 211A, 212, 215, 216, 
217, 218, 219, 220, 221, 222, or 223 of this title).
    (f) No provision in this subchapter shall apply to, or be 
deemed to include, the United States, a State or any [political 
subdivision of a State] 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 sells 
less than 4,000,000 megawatt hours of electricity per year, or 
any agency, authority, or instrumentality of any one or more of 
the foregoing, or any corporation which is wholly owned, 
directly or indirectly, by any one or more of the foregoing, or 
any officer, agent, or employee of any of the foregoing acting 
as such in the course of his official duty, unless such 
provision makes specific reference thereto.
    (g) * * *
          (5) As used in this subsection the terms affiliate, 
        associate company, electric utility company, holding 
        company, subsidiary company, and exempt wholesale 
        generator shall have the same meaning as when used in 
        the Public Utility Holding Company Act of [1935] 2005.

           *       *       *       *       *       *       *

     DISPOSITION OF PROPERTY; CONSOLIDATION; PURCHASE OF SECURITIES

    [Sec. 203. (a) No public utility shall 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 $50,000, or by any means whatsoever, directly or 
indirectly, merge or consolidate such facilities or any part 
thereof with those of any other person, or purchase, acquire, 
or take any security of any other public utility, without first 
having secured an order of the Commission authorizing it to do 
so. Upon 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. After notice and opportunity 
for hearing, if the Commission finds that the proposed 
disposition, consolidation, acquisition, or control will be 
consistent with the public interest, it shall approve the 
same.]
    (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 gas utility company, or a holding 
        company in a holding company system that includes a 
        transmitting utility, an electric utility company, or a 
        gas 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--
                  (A) will be consistent with the public 
                interest, taking into account the effect of the 
                transaction on competition in the electricity 
                markets, electric rates, and effective 
                regulation; and
                  (B) shall 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 would not 
                be harmful.
          (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.

           *       *       *       *       *       *       *

   FIXING RATES AND CHARGES; DETERMINATION OF COST OF PRODUCTION OR 
                             TRANSPORTATION

    Sec. 206. (a) Whenever the Commission, after a [hearing 
had] hearing held * * *
    (b) Whenever the Commission institutes a proceeding under 
this section, the Commission shall establish a refund effective 
date. In the case of a proceeding instituted on complaint, the 
refund effective date shall not be earlier than [the date 60 
days after the filing of such complaint nor later than 5 months 
after the expiration of such 60-day period] the date of the 
filing of such complaint nor later than 5 months after the 
filing of such complaint. In the case of a proceeding 
instituted by the Commission on its own motion, the refund 
effective date shall not be earlier than the date [60 days 
after] of the publication by the Commission of notice of its 
intention to initiate such proceeding nor later than 5 months 
after the [expiration of such 60-day period] publication date. 
Upon institution of a proceeding under this section, the 
Commission shall give to the decision of such proceeding the 
same preference as provided under section 205 of this Act and 
otherwise act as speedily as possible. [If no final decision is 
rendered by the refund effective date or by the conclusion of 
the 180-day period commencing upon initiation of a proceeding 
pursuant to this section, whichever is earlier, the Commission 
shall state the reasons why it has failed to do so and shall 
state its best estimate as to when it reasonably expects to 
make such decision.] If no final decision is rendered by the 
conclusion of the 180-day period commencing upon initiation of 
a proceeding pursuant to this section, the Commission shall 
state the reasons why it has failed to do so and shall state 
its best estimate as to when it reasonably expects to make such 
decision. In any proceeding under this section, the burden of 
proof to show that any rate, charge, classification, rule, 
regulation, practice, or contract is unjust, unreasonable, 
unduly discriminatory, or preferential shall be upon the 
Commission or the complainant. At the conclusion of any 
proceeding under this section, the Commission may order [the 
public utility to make] refunds of any amounts paid, for the 
period subsequent to the refund * * *

           *       *       *       *       *       *       *

    (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 48 hours or 
        less.
          (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) any 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.
    (5) 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.

           *       *       *       *       *       *       *

                       CERTAIN WHEELING AUTHORITY

    Sec. 211. (a) * * *
    (c)[(2)] No order may be issued under subsection (a) or (b) 
which requires the transmitting utility subject to the order to 
transmit, during any period, an amount of electric energy which 
replaces any amount of electric energy--
          [(A)] (1) required to be provided to such applicant 
        pursuant to a contract during such period, or
          [(B)] (2) currently provided to the applicant by the 
        utility subject to the order pursuant to a rate 
        schedule on file during such period with the 
        Commission: Provided, That nothing in this subparagraph 
        shall prevent an application for an order hereunder to 
        be filed prior to [termination of modification] 
        termination or modification of an existing rate 
        schedule: Provided, That such order shall not become 
        effective until termination of such rate schedule or 
        the modification becomes effective.
    (d)(1) Any transmitting utility ordered under subsection 
(a) or (b) to provide transmission services may apply to the 
Commission for an order permitting such transmitting utility to 
cease providing all, or any portion of, such services. After 
public notice, notice to each affected State regulatory 
authority, each affected Federal power marketing agency, each 
affected transmitting utility, and each affected electric 
utility, and after an opportunity for an evidentiary hearing, 
the Commission shall issue an order terminating or modifying 
the order issued under subsection (a) or (b), if the [electric 
utility] transmitting utility providing such transmission 
services has demonstrated, and the Commission has found, that--
          (A) due to changed circumstances, the requirements 
        applicable, under this section and section 212, to the 
        issuance of an order under subsection (a) or (b) are no 
        longer met, or
          (B) any transmission capacity of the utility 
        providing transmission services under such order which 
        was, at the time such order was issued, in excess of 
        the capacity necessary to serve its own customers is no 
        longer in excess of the capacity necessary for such 
        purposes, or
          (C) the ordered transmission services require 
        enlargement of transmission capacity and the 
        transmitting utility subject to the order has failed, 
        after making a good faith effort, to obtain the 
        necessary approvals or property rights under applicable 
        Federal, State, and local laws.
No order shall be issued under this subsection pursuant to a 
finding under subparagraph (A) unless the Commission finds that 
such order is in the public interest.

           *       *       *       *       *       *       *

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 Preperation Improvements.--Subject to 
section 212(h), the Commission may, by rule or order, require 
an unregulated transmitting utility to provide transmission 
services--
          (1) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself; and
          (2) on terms and conditions (not relating to rates) 
        that are comparable to those under which such 
        unregulated transmitting utility provides transmission 
        services to itself and that are not unduly 
        discriminatory or preferential.
                    (C) Exemption.--The Commission shall exempt 
                from any rule or order under this subsection 
                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 Utilties.--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 its authority under subsection 
(b)(1), the Commission may remand transmission rates to an 
unregulated transmitting utility for review and revision where 
necessary to meet the requirements of subsection (b).
    (h) Other Requests.--The provision of transmission services 
under subsection (a) 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 non-
discriminatory transmission access.

           *       *       *       *       *       *       *

SEC. 214. SALES BY EXEMPT WHOLESALE GENERATORS.

    No rate or charge received by an exempt wholesale generator 
for the sale of electric energy shall be lawful under section 
824d of this title if, after notice and opportunity for 
hearing, the Commission finds that such rate or charge results 
from the receipt of any undue preference or advantage from an 
electric utility which is an associate company or an affiliate 
of the exempt wholesale generator. For purposes of this 
section, the terms associate company and affiliate shall have 
the same meaning as provided in section 2(a) of the Public 
Utility Holding Company Act of [1935] 2005.

SEC. 215. ELECTRIC RELIABILITY.

    (a) Definitions.--In this section:
          (1)(A) The term ``bulk-power system'' means--
                  (i) facilities and control systems necessary 
                for operating an interconnected electric energy 
                transmission network (or any portion of such a 
                network); and
                  (ii) electric energy from generation 
                facilities needed to maintain transmission 
                system reliability.
          (B) The term ``bulk-power system'' 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 review by the Commission.
          (3)(A) The term ``reliability standard'' means a 
        requirement, approved by the Commission under this 
        section, to provide for reliable operation of the bulk-
        power system.
          (B) The term ``reliability standard'' includes 
        requirements for the operation of existing bulk-power 
        system components and the design of planned additions 
        or modifications to those components to the extent 
        necessary to provide for reliable operation of the 
        bulk-power system, except that the term does not 
        include any requirement to enlarge those components or 
        to construct new transmission capacity or generation 
        capacity.
          (4) The term ``reliable operation'' means operating 
        the components of the bulk-power system within 
        equipment and electric system thermal, voltage, and 
        stability limits so that instability, uncontrolled 
        separation, or cascading failures of the systemwill not 
occur as a result of a sudden disturbance or unanticipated failure of 
system components.
          (5) The term ``interconnection'' means a geographic 
        area in which the operation of bulk-power system 
        components is synchronized such that the failure of 1 
        or more of the components may adversely affect the 
        ability of the operators of other components within the 
        system to maintain reliable operation of the portion of 
        the system within their control.
          (6) The term ``regional entity'' means an entity 
        having enforcement authority pursuant to subsection 
        (e)(4).
  (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 the entities described in section 201(f)), 
for purposes of approving reliability standards established 
under this section and enforcing compliance with this section.
  (2) All users, owners, and operators of the bulk-power system 
shall comply with reliability standards that take effect under 
this section.
  (3) 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.--(1) Following the issuance of a 
Commission rule under subsection (b)(3), any person may submit 
an application to the Commission for certification as the 
Electric Reliability Organization.
    (2) The Commission may certify 1 such ERO if the Commission 
determines that the ERO--
          (A) 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
          (B) has established rules that--
                  (i) ensure the independence of the ERO from 
                the users and owners and operators of the bulk-
                power system, while ensuring fair stakeholder 
                representation in the selection of the 
                directors of the ERO and balanced 
                decisionmaking in any ERO committee or 
                subordinate organizational structure;
                  (ii) allocate equitably reasonable dues, 
                fees, and other charges among end users for all 
                activities under this section;
                  (iii) 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);
                  (iv) provide for reasonable notice and 
                opportunity for public comment, due process, 
                openness, and balance of interests in 
                developing reliability standards and otherwise 
                exercising the duties of the ERO; and
                  (v) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada 
                and Mexico.
  (d) Reliability Standards.--(1) The ERO shall file each 
reliability standard or modification to a reliability standard 
that the ERO proposes to be made effective under this section 
with the Commission.
    (2)(A) The Commission may approve, by rule or order, a 
proposed reliability standard or modification to a reliability 
standard if the Commission determines that the standard is 
just, reasonable, not unduly discriminatory or preferential, 
and in the public interest.
    (B) The Commission--
          (i) shall give due weight to the technical expertise 
        of the ERO with respect to the content of a proposed 
        standard or modification to a reliability standard and 
        to the technical expertise of a regional entity 
        organized on an interconnection-wide basis with respect 
        to a reliability standard to be applicable within that 
        interconnection; but
          (ii) shall not defer with respect to the effect of a 
        standard on competition.
    (C) A proposed standard or modification shall take effect 
on approval by the Commission.
    (3) The ERO shall rebuttably presume that a proposal from a 
regional entity organized on an interconnection-wide basis for 
a reliability standard or modification to a reliability 
standard to be applicable on an interconnection-wide basis is 
just, reasonable, not unduly discriminatory or preferential, 
and in the public interest.
    (4) The Commission shall remand to the ERO for further 
consideration a proposed reliability standard or a modification 
to a reliability standard that the Commission disapproves in 
whole or in part.
    (5) The Commission, on a motion of the Commission or on 
complaint, may order the ERO to submit to the Commission a 
proposed reliability standard or a modification to a 
reliability standard that addresses a specific matter if the 
Commission considers such a new or modified reliability 
standard appropriate to carry out this section.
    (6)(A) 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.
    (B) The transmission organization shall continue to comply 
with such function, rule, order, tariff, rate schedule or 
agreement accepted approved, or ordered by the Commission 
until--
          (i) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
          (ii) the Commission orders a change to the provision 
        pursuant to section 206; and
          (iii) the ordered change becomes effective under this 
        part.
    (C) If the Commission determines that a reliability 
standard needs to be changed as a result of such a conflict, 
the Commission shall order the ERO to develop and file with the 
Commission a modified reliability standard under paragraph (4) 
or (5).
  (e) Enforcement.--(1) Subject to paragraph (2), the ERO may 
impose 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) A penalty imposed under paragraph (1) may take 
effect not earlier than the day that is 31 days after the date 
on which the ERO files with the Commission notice of the 
penalty and the record of proceedings.
    (B) The penalty shall be subject to review by the 
Commission on--
          (i) a motion by the Commission; or
          (ii) application by the user, owner or operator that 
        is the subject of the penalty filed not later than 30 
        days after the date on which the notice is filed with 
        the Commission.
    (C) Application to the Commission for review, or the 
initiation of review by the Commission on a motion of the 
Commission, shall not operate as a stay of the penalty unless 
the Commission orders otherwise on a motion of the Commission 
or on application by the user, owner or operator that is the 
subject of the penalty.
    (D) 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--
          (i) affirm, modify, or set aside the penalty), shall 
        by order affirm, set aside, reinstate, or modify the 
        penalty; and
          (ii) if appropriate, remand to the ERO for further 
        proceedings.
    (E) The Commission shall implement expedited procedures for 
the hearings described in subparagraph (D).
    (3) On a motion of the Commission or on 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 act or practice that constitutes or will constitute a 
violation of a reliability standard.
    (4)(A) 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--
          (i) the regional entity is governed by--
                  (I) an independent board;
                  (II) a balanced stakeholder board; or
                  (III) a combination independent and balanced 
                stakeholder board;
          (ii) the regional entity otherwise meets the 
        requirements of paragraphs (1) and (2) of subsection 
        (c); and
          (iii) the agreement promotes effective and efficient 
        administration of bulk-power system reliability.
    (B) The Commission may modify a delegation under this 
paragraph.
    (C) 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.
    (D) The regulation issued under this paragraph may provide 
that the Commission may assign the authority of the ERO to 
enforce reliability standards under paragraph (1) directly to a 
regional entity in accordance with 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--
          (A) bear a reasonable relation to the seriousness of 
        the violation; and
          (B) take into consideration the efforts of the user, 
        owner, or operator to remedy the violation in a timely 
        manner.
    (f) Changes in Electric Reliability Organization Rules.--
(1) The Electric Reliability Organization shall file with the 
Commission for approval any proposed rule or proposed rule 
change, accompanied by an explanation of the basis and purpose 
of the rule and proposed rule change.
    (2) The Commission, upon a motion of the Commission or upon 
complaint, may propose a change to the rules of the ERO.
    (3) 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, 
and not unduly discriminatory or preferential, is in the public 
interest, and meets 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 may develop and 
enforce compliance with reliability standards for only the 
bulk-power system.
    (2) Nothing in this section authorizes 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 preempts any authority of any 
State to take action to ensure the safety, adequacy, and 
reliability of electric service within that State, as long as 
the action is not inconsistent with any reliability standard.
    (4) Not later than 90 days after the date of 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 issuance by the Commission of a final 
order.
    (j) Regional Advisory Bodies.--(1) 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 the electric load of the States served within the region.
    (2) A regional advisory body--
          (A) shall be composed of 1 member from each 
        participating State in the region, appointed by the 
        Governor of the State; and
          (B) may include representatives of agencies, States, 
        and provinces outside the United States.
    (3) A regional advisory body may provide advice to the 
Electric Reliability Organization, a regional entity, or the 
Commission regarding--
          (A) the governance of an existing or proposed 
        regional entity within the same region;
          (B) whether a standard proposed to apply within the 
        region is just, reasonable, not unduly discriminatory 
        or preferential, and in the public interest;
          (C) whether fees proposed to be assessed within the 
        region are just, reasonable, not unduly discriminatory 
        or preferential, and in the public interest; and
          (D) any other responsibilities requested by the 
        Commission.
    (4) The Commission may give deference to the advice of a 
regional advisory body if that body is organized on an 
interconnection-wide basis.
    (k) Alaska and Hawaii.--This section does not apply to 
Alaska or Hawaii.
    (l) Status of ERO.--The Electric Reliability Organization 
certified by the Commission under section 215(c) of the Federal 
Power Act (as added by subsection (a)) and any regional entity 
delegated enforcement authority pursuant to section 215(e)(4) 
of that Act (as so added) are not departments, agencies, or 
instrumentalities of the Federal Government.

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 so as to 
        minimize the environmental and visual impact of the 
        proposed modification.
    (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.
    (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 or distribution 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 or distribution 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.

SEC. 217. PROMOTION OF VOLUNTARY TRANSMISSION ORGANIZATIONS.

    (a) In General.--The Commission may encourage and may 
approve the voluntary formation of RTOs, ISOs, or other similar 
organizations approved by the Commission for the purposes of--
          (1) promoting fair, open access to electric 
        transmission service;
          (2) facilitating wholesale competition;
          (3) improving efficiencies in transmission grid 
        management;
          (4) promoting grid reliability;
          (5) removing opportunities for unduly discriminatory 
        or preferential transmission practices; and
          (6) providing for the efficient development of 
        transmission infrastructure needed to meet the growing 
        demands of competitive wholesale power markets.
    (b) Operational Control.--No order issued under this Act 
shall be conditioned on or require a transmitting utility to 
transfer operational control of jurisdictional facilities to a 
Transmission Organization approved by the Commission.
    (c) Annual Audits.--(1) Each Transmission Organization 
shall report to the Commission on a scheduled basis, as 
determined by the Commission, the means by which the 
Transmission Organization will ensure that the Transmission 
Organization will operate and perform the functions of the 
Transmission Organization in a cost effective manner that is 
also consistent with the obligations of the Transmission 
Organization under the Commission-approved tariffs and 
agreements of the Transmission Organization.
    (2) The Commission shall annually audit the compliance of 
the Transmission Organization with the filed plan and any 
additional Commission requirements concerning the performance, 
operations, and cost efficiencies of the Transmission 
Organization.
    (3) The Commission shall establish appropriate accounting 
procedures for recording costs to facilitate comparisons among 
Transmission Organizations and, to the extent practicable, 
among other transmitting utilities performing similar 
functions.

SEC. 218. 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 States 
        or political subdivisions, or a corporation that is 
        wholly owned, directly or indirectly, by any 1 or more 
        of the States or political subdivisions, competent to 
        carry on the business of developing, transmitting, 
        using, 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 provides a basis 
for abrogating any contract or service agreement for firm 
transmission service or rights in effect as of the date of 
enactment of this section. 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).
    (h) 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 
subsection (b)(4) in Transmission Organizations with organized 
electricity markets.
    (i) 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.

SEC. 219. 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)(1); or
          (2) firm transmission rights obtained by exercising 
        contract or tariff rights associated with the firm 
        transmission rights described in subsection (a)(1).

SEC. 220. 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 
benefiting 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) 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. 221. MARKET TRANSPARENCY RULES.

    (a) In General.--The Commission may issue such rules as the 
Commission considers to be appropriate to establish an 
electronic information system to provide the Commission and the 
public with access to such information as is necessary or 
appropriate to facilitate price transparency and participation 
in markets for the sale in interstate commerce of electric 
energy at wholesale.
    (b) Information To Be Made Available.--(1) The system under 
subsection (a) shall provide, on a timely basis, information 
about the availability and market price of wholesale electric 
energy and transmission services to the Commission, State 
commissions, buyers and sellers of wholesale electric energy, 
users of transmission services, and the public.
    (2) In determining the information to be made available 
under the system and the time at which to make such 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) Authority To Obtain Information.--The Commission shall 
have authority to obtain information described in subsections 
(a) and (b) from any electric utility or transmitting utility 
(including any entity described in section 201(f)).
    (d) Exemptions.--The rules of the Commission, if adopted, 
shall exempt from disclosure information that the Commission 
determines would, if disclosed--
          (1) be detrimental to the operation of an effective 
        market; or
          (2) jeopardize system security.
    (e) Commodity Futures Trading Commission.--(1) This section 
shall not affect the exclusive jurisdiction of the Commodity 
Futures Trading Commission with respect to accounts, 
agreements, contracts, or transactions in commodities under the 
Commodity Exchange Act (7 U.S.C. 1 et seq.).
    (2) Any request for information to a designated contract 
market, registered derivatives transaction execution facility, 
board of trade, exchange, or market involving an account, 
agreement, contract, or transaction in a commodity (including 
natural gas, electricity and other energy commodities) within 
the exclusive jurisdiction of the Commodity Futures Trading 
Commission shall be directed to the Commodity Futures Trading 
Commission, which shall cooperate in responding to any 
information request by the Commission.
    (f) Savings Provision.--In exercising authority under this 
section, the Commission shall not--
          (1) compete with, or displace from the market place, 
        any price publisher (including any electronic price 
        publisher); or
          (2) regulate price publishers (including any 
        electronic price publisher) or impose any requirements 
        on the publication of information by price publishers 
        (including any electronic price publisher).
    (g) ERCOT.--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. 222. 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. 223. PROHIBITION OF ENERGY MARKET MANIPULATION.

    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.

           *       *       *       *       *       *       *

PART III--LICENSEES AND PUBLIC UTILITIES; PROCEDURAL AND ADMINISTRATIVE 
PROVISIONS

           *       *       *       *       *       *       *

                               COMPLAINTS

    Sec. 306. Any person, electric utility, State, 
municipality, or State commission complaining of anything done 
or omitted to be done by any licensee, transmitting utility, or 
public utility in contravention of the provisions of this Act 
may apply to the Commission by petition which shall briefly 
state the facts, whereupon a statement of the complaint thus 
made shall be forwarded by the Commission to such licensee, 
transmitting utility, or public utility, who shall be called 
upon to satisfy the complaint or to answer the same in writing 
within a reasonable time to be specified by the Commission. If 
such licensee, transmitting utility, or public utility shall 
not satisfy the complaint within the time specified or there 
shall appear to be any reasonable ground for investigating such 
complaint, it shall be the duty of the Commission to 
investigate the matters complained of in such manner and by 
such means as it shall find proper.

   INVESTIGATIONS BY COMMISSION; ATTENDANCE OF WITNESSES; DEPOSITIONS

    Sec. 307. (a) The Commission may investigate any facts, 
conditions, practices, or matters which it may find necessary 
or proper in order to determine whether any person, electric 
utility, transmitting utility, or other entity has violated or 
is about to violate any provision of this Act or any rule, 
regulation, or order thereunder, or to aid in the enforcement 
of the provisions of this Act or in prescribing rules or 
regulations thereunder, or in obtaining information to serve as 
a basis for recommending further legislation concerning the 
matters to which this Act relates, or in obtaining information 
about the sale of electric energy at wholesale in interstate 
commerce and the transmission of electric energy in interstate 
commerce. The Commission may permit any person, electric 
utility, transmitting utility, or other entity to file with it 
a statement in writing under oath or otherwise, as it shall 
determine, as to any or all facts and circumstances concerning 
a matter which may be the subject of investigation.

           *       *       *       *       *       *       *

                   REHEARINGS; COURT REVIEW OF ORDERS

    Sec. 313. (a) Any person, electric utility, State, 
municipality, or State commission aggrieved by an order issued 
by the Commission in a proceeding under this chapter to which 
such person, electric utility, State, municipality, or State 
commission is a party may apply for a rehearing within thirty 
days after the issuance of such order. The application for 
rehearing shall set forth specifically the ground or grounds 
upon which such application is based. Upon such application the 
Commission shall have power to grant or deny rehearing or to 
abrogate or modify its order without further hearing. Unless 
the Commission acts upon the application for rehearing within 
thirty days after it is filed, such application may be deemed 
to have been denied. No proceeding to review any order of the 
Commission shall be brought by [any person unless such person] 
any entity unless such entity shall have made application to 
the Commission for a rehearing thereon. Until the record in a 
proceeding shall have been filed in a court of appeals, as 
provided in subsection (b) of this section, the Commission may 
at any time, upon reasonable notice and in such manner as it 
shall deem proper, modify or set aside, in whole or in part, 
any finding or order made or issued by it under the provisions 
of this chapter.

           *       *       *       *       *       *       *

               ENFORCEMENT OF ACT, REGULATIONS AND ORDERS

    Sec. 314. * * *
    (c) * * *
    (d) In any proceeding under paragraph (a), the court may 
prohibit, conditionally or unconditionally, and permanently or 
for such period of time as the Court determines, any person who 
is engaged or has engaged in practices constituting a violation 
of Section 222 (and related rules or 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.

                  GENERAL FORFEITURE PROVISIONS; VENUE

    Sec. 315. * * *
    (b) * * *
    (c) This [subsection] section shall not apply in the case 
of any provision of section 211, 212, 213, or 214 or any rule 
or order issued under any such provision.

                           GENERAL PENALTIES

    Sec. 316. (a) Any person who willfully and knowingly does 
or causes or suffers to be done any act, matter, or thing in 
this Act prohibited or declared to be unlawful, or who 
willfully and knowingly omits or fails to do any act, matter, 
or thing in this Act required to be done, or willfully and 
knowingly causes or suffers such omission or failure, shall, 
upon conviction thereof, be punished by a fine of not more than 
[$5,000] $1,000,000 or by imprisonment for not more than [two 
years] five years, or both.
    (b) Any person who willfully and knowingly violates any 
rule, regulation, restriction, condition, or order made or 
imposed by the Commission under authority of this Act, or any 
rule or regulation imposed by the Secretary of the Army under 
authority of Part I of this Act shall, in addition to any other 
penalties provided by law, be punished upon conviction thereof 
by a fine of not exceeding [$500] $25,000 for each and every 
day during which such offense occurs.
    [(c) This subsection shall not apply in the case of any 
provision of section 211, 212, 213, or 214 or any rule or order 
issued under any such provision.]

SEC. 316A. ENFORCEMENT OF CERTAIN PROVISIONS

    (a) Violations.--It shall be unlawful for any person to 
violate any provision of [section 211, 212, 213, or 214] Part 
II or any rule or order issued under any such provision.
    (b) Civil Penalties.--Any person who violates any provision 
of [section 211, 212, 213, or 214] Part II or any provision of 
any rule or order thereunder shall be subject to a civil 
penalty of not more than [$10,000] $1,000,000 for each day that 
such violation continues.

           *       *       *       *       *       *       *

                       [CONFLICT OF JURISDICTION]

    [Sec. 318. If, with respect to the issue, sale, or guaranty 
of a security, or assumption of obligation or liability in 
respect of a security, the method of keeping accounts, the 
filing of reports, or the acquisition or disposition of any 
security, capital assets, facilities, or any other subject 
matter, any person is subject both to a requirement of the 
Public Utility Holding Company Act of 1935 or of a rule, 
regulation, or order thereunder and to a requirement of this 
Act or of a rule, regulation, or order thereunder, the 
requirement of the Public Utility Holding Company Act of 1935 
shall apply to such person, and such person shall not be 
subject to the requirement of this Act, or of any rule, 
regulation, or order thereunder, with respect to the same 
subject matter, unless the Securities and Exchange Commission 
has exempted such person from such requirement of the Public 
Utility Holding Company Act of 1935, in which case the 
requirements of this Act shall apply to such person.]
                              ----------                              --
--------

 MINERAL LEASING ACT--ACT OF FEBRUARY 25, 1920, AS AMENDED (30 U.S.C. 
                              181 ET SEQ.)

                                  COAL

    Sec. 2. * * *
    (d)(1) * * *
    (2)(A) After the Secretary has approved the establishment 
of a logical mining unit, any mining plan approved for that 
unit must require such diligent development, operation, and 
production that the reserves of the entire unit will be mined 
within a period established by the Secretary which shall not be 
more than forty years.
    (B) The Secretary may establish a period of more than forty 
years if the Secretary determines that--
          (i) the longer period 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. 3. [Any person,] (a)(1) Except as provided in 
paragraph (3), on a finding by the Secretary under paragraph 
(2), any person, association, or corporation holding a lease of 
coal lands or coal deposits under the provisions of this 
chapter may with the approval of the Secretary of the Interior, 
[upon a finding by him that it would be in the interest of the 
United States, secure modifications of the original coal lease 
by including additional coal lands or coal deposits contiguous 
or cornering to those embraced in such lease, but in no event 
shall the total area added by such modifications to an existing 
coal lease exceed one hundred sixty acres, or add acreage 
larger than that in the original lease.] secure modifications 
of the original coal lease by including additional coal lands 
or coal deposits contiguous or cornering to those embraced in 
the lease.
    (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 
totalarea added by modifications to an existing coal lease under 
paragraph (1)--(A) exceed 320 acres; or (B) add acreage larger than 
that in the original lease. [The Secretary] (b) The Secretary shall 
prescribe terms and conditions which shall be consistent with this 
chapter and applicable to all of the acreage in such modified lease 
except that nothing in this section shall require the Secretary to 
apply the production or mining plan requirements of sections 202a(2) 
and 207(c) of this title. [The minimum] (c) The minimum royalty 
provisions of section 207(a) of this title shall not apply to any lands 
covered by this modified lease prior to a modification until the term 
of the original lease or extension thereof which became effective prior 
to the effective date of this Act has expired.

           *       *       *       *       *       *       *

    Sec. 7. * * *
    (b) [Each lease] (1) Each lease shall be subject to the 
conditions of diligent development and continued operation of 
the mine or mines, except where operations under the lease are 
interrupted by strikes, the elements, or casualties not 
attributable to the lessee. [The Secretary] (2) The Secretary 
of the Interior, upon determining that the public interest will 
be served thereby, may suspend the condition of continued 
operation upon the payment of advance royalties. [Such advance 
royalties] (3) Advance royalties described in paragraph (2) 
shall be no less than the production royalty which would 
otherwise be paid and shall be computed on a fixed reserve to 
production ratio (determined by the Secretary). [The aggregate 
number of years during the period of any lease for which 
advance royalties may be accepted in lieu of the condition of 
continued operation shall not exceed ten. The amount of any 
production royalty paid for any year shall be reduced (but not 
below 0) by the amount of any advance royalties paid under such 
lease to the extent that such advance royalties have not been 
used to reduce production royalties for a prior year. No 
advance royalty paid during the initial twenty-year term of a 
lease shall be used to reduce a production royalty after the 
twentieth year of a lease.] (4) 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. (5) 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 (4) to the extent that the advance 
royalties have not been used to reduce production royalties for 
a prior year. [The Secretary] (6) The Secretary may, upon six 
months' notification to the lessee cease to accept advance 
royalties in lieu of the requirement of continued operation. 
[Nothing] (7) Nothing in this subsection shall be construed to 
affect the requirement contained in the second sentence of 
subsection (a) of this section relating to commencement of 
production at the end of ten years.
    (c) Prior to taking any action on a leasehold which might 
cause a significant disturbance of the environment, [and not 
later than three years after a lease is issued,] the lessee 
shall submit for the Secretary's approval an operation and 
reclamation plan. The Secretary shall approve or disapprove the 
plan or require that it be modified. Where the land involved is 
under the surface jurisdiction of another Federal agency, that 
other agency must consent to the terms of such approval.

           *       *       *       *       *       *       *

    Sec. 17. * * *
    (b)(1)(B) The national minimum acceptable bid shall be $2 
per acre for a period of 2 years from the date of enactment of 
the Federal Onshore Oil and Gas Leasing Reform Act of 1987. 
Thereafter, the Secretary may establish by regulation a higher 
national minimum acceptable bid for all leases based upon a 
finding that such action is necessary: (i) to enhance financial 
returns to the United States; and (ii) to promote more 
efficient management of oil and gas resources on Federal lands. 
Ninety days before the Secretary makes any change in the 
national minimum acceptable bid, the Secretary shall notify the 
Committee on Natural Resources of the United States House of 
Representatives and the Committee on Energy and Natural 
Resources of the United States Senate. [The] Subject to 
paragraph (2)(B), the proposal or promulgation of any 
regulation to establish a national minimum acceptable bid shall 
not be considered a major Federal action subject to the 
requirements of section 102(2)(C) of the National Environmental 
Policy Act of 1969.
    (2)(A) If the lands to be leased are within a special tar 
sand area, [they shall be] the lands may be leased to the 
highest responsible qualified bidder by competitive bidding 
under general regulations in units of not more than five 
thousand one hundred and twenty acres, which shall be as nearly 
compact as possible, upon the payment by the lessee of such 
bonus as may be accepted by the Secretary. Royalty shall be 
12\1/2\ per centum in amount of value of production removed or 
sold from the lease subject to section 17(k)(1)(c). The 
Secretary may lease such additional lands in special tar sand 
areas as may be required in support of any operations necessary 
for the recovery of tar sands.
    (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 described in subparagraph (B) shall have 
provisions addressing the appropriate accommodation of 
resources.
    (D) A lease issued for tar sand development 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.

           *       *       *       *       *       *       *

    Sec. 27. * * *
    (d)(1) No person, association, or corporation, except as 
otherwise provided in this Act, shall take, hold, own or 
control at one time, whether acquired directly from the 
Secretary under this Act or otherwise, oil or gas leases 
(including options for such leases or interests therein) on 
land held under the provisions of this Act exceeding in the 
aggregate two hundred forty-six thousand and eighty acres in 
any one State other than Alaska: Provided, however, That 
acreage held in special tar sand areas, 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, shall not be 
chargeable against such State limitations. In the case of the 
State of Alaska, the limit shall be three hundred thousand 
acres in the northern leasing district and three hundred 
thousand acres in the southern leasing district, and the 
boundary between said two districts shall be the left limit of 
the Tanana River from the border between the United States and 
Canada to the confluence of the Tanana and Yukon Rivers, and 
the left limit of the Yukon River from said confluence to its 
principal southern mouth.
                              ----------                              --
--------

APPROPRIATIONS FOR THE DEPARTMENT OF THE INTERIOR AND RELATED AGENCIES 
 FOR THE FISCAL YEAR ENDING SEPTEMBER 30, 1981--PUBLIC LAW 96-514, AS 
                                AMENDED

                                 An Act

Making appropriations for the Department of the Interior and 
related agencies for the fiscal year ending September 30, 1981, 
and for other purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the 
following sums are appropriated, out of any money in the 
Treasury not otherwise appropriated, for the Department of the 
Interior and related agencies for the fiscal year ending 
September 30, 1981, and for other purposes, namely:

TITLE I--DEPARTMENT OF THE INTERIOR

           *       *       *       *       *       *       *

ENERGY AND MINERALS

           *       *       *       *       *       *       *

    [For necessary expenses of carrying out the provisions of 
section 104 of Public Law 94-258, and for conducting hereafter 
and with funds appropriated by this Act and by subsequent 
appropriations Acts, notwithstanding any other provision of law 
and pursuant to such rules and regulations as the Secretary may 
prescribe, an expeditious program of competitive leasing of oil 
and gas in the National Petroleum Reserve in Alaska: Provided, 
That (1) activities undertaken pursuant to this section shall 
include or provide for, $107,001,000, to remain available until 
expended: Provided, that (1) activities undertaken pursuant to 
this Act shall include or provide for such conditions, 
restrictions, and prohibitions as the Secretary deems necessary 
or appropriate to mitigate reasonably foreseeable and 
significantly adverse effects on the surface resources of the 
National Petroleum Reserve in Alaska (the Reserve); (2) the 
provisions of section 202 and section 603 of the Federal Lands 
Policy and Management Act of 1976 (90 Stat. 2743) shall not be 
applicable to the Reserve; (3) the first lease sale shall be 
conducted within twenty months of the date of enactment of this 
Act: Provided, That the first lease sale shall be conducted 
only after publication of a final environmental impact 
statement if such is deemed necessary under the provisions of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4332); 
(4) the withdrawals established by section 102 of Public Law 
94-258 are rescinded for the purposes of the oil and gas 
leasing program authorized herein; (5) bidding systems used in 
lease sales shall be based on bidding systems included in 
section 205(a)(1)(A) through (H) of the Outer Continental Shelf 
Lands Act Amendments of 1978 (92 Stat. 629); (6) lease tracts 
may encompass identified geological structures; (7) the size of 
lease tracts may be up to sixty thousand acres, as determined 
by the Secretary; (8) each lease shall be issued for an initial 
period of ten years, and shall be extended for so long 
thereafter as oil or gas is produced from the lease in paying 
quantities, or as drilling or reworking operations, as approved 
by the Secretary, are conducted thereon; (9) for purposes of 
conservation of the natural resources of any oil or gas pool, 
field, or like area, or any part thereof, lessees thereof and 
their representatives are authorized to unite with each other, 
or jointly or separately with others, in collectively adopting 
and operating under a unit agreement for such pool, field, or 
like area, or any part thereof (whether or not any other part 
of said oil or gas pool, field, or like area is already subject 
to any cooperative or unit plan of development or operation), 
whenever determined by the Secretary to be necessary or 
advisable in the public interest. Drilling, production, and 
well reworking operations performed in accordance with a unit 
agreement shall be deemed to be performed for the benefit of 
all leases that are subject in whole or in part to such unit 
agreement. When separate tracts cannot be independently 
developed and operated in conformity with an established well 
spacing or development program, any lease, or a portion 
thereof, may be pooled with other lands, whether or not owned 
by the United States, under a communitization or drilling 
agreement providing for an apportionment of production or 
royalties among the separate tracts of land comprising the 
drilling or spacing unit when determined by the Secretary of 
the Interior to be in the public interest, and operations or 
production pursuant to such an agreement shall be deemed to be 
operations or production as to each such lease committed 
thereto; (10) to encourage the greatest ultimate recovery of 
oil or gas or in the interest of conservation the Secretary is 
authorized to waive, suspend, or reduce the rental, or minimum 
royalty, or reduce the royalty on an entire leasehold, 
including on any lease operated pursuant to a unit agreement, 
whenever in his judgment the leases cannot be successfully 
operated under the terms provided therein. The Secretary is 
authorized to direct or assent to the suspension of operations 
and production on any lease or unit. In the event the 
Secretary, in the interest of conservation, shall direct or 
assent to the suspension of operations and production on any 
lease or unit, any payment of acreage rental or minimum royalty 
prescribed by such lease or unit likewise shall be suspended 
during the period of suspension of operations and production, 
and the term of such lease shall be extended by adding any such 
suspension period thereto; and (11) all receipts from sales, 
rentals, bonuses, and royalties on leases issued pursuant to 
this section shall be paid into theTreasury of the United 
States: Provided, That 50 percent thereof shall be paid by the 
Secretary of the Treasury semiannually, as soon thereafter as 
practicable after March 30 and September 30 each year, to the State of 
Alaska for: (A) planning; (B) construction, maintenance, and operation 
of essential public facilities; and (C) other necessary provisions of 
public service: Provided further, That in the allocation of such funds, 
the State shall give priority to use by subdivisions of the State most 
directly or severely impacted by development of oil and gas leased 
under this section.
    [Any agency of the United States and any person authorized 
by the Secretary may conduct geological and geophysical 
explorations in the National Petroleum Reserve in Alaska which 
do not interfere with operations under any contract maintained 
or granted previously. Any information acquired in such 
explorations shall be subject to the conditions of 43 U.S.C. 
1352(a)(1)(A).
    [Any action seeking judicial review of the adequacy of any 
program or site-specific environmental impact statement under 
section 102 of the National Environmental Policy Act of 1969 
(42 U.S.C. 4332) concerning oil and gas leasing in the National 
Petroleum Reserve-Alaska shall be barred unless brought in the 
appropriate District Court within 60 days after notice of the 
availability of such statement is published in the Federal 
Register.
    [The detailed environmental studies and assessments that 
have been conducted on the exploration program and the 
comprehensive land-use studies carried out in response to 
sections 105(b) and (c) of Public Law 94-258 shall be deemed to 
have fulfilled the requirements of section 102(2)(c) of the 
National Environmental Policy Act (Public Law 91-190), with 
regard to the first two oil and gas lease sales in the National 
Petroleum Reserve-Alaska: Provided, That not more than a total 
of 2,000,000 acres may be leased in these two sales: Provided 
further, That any exploration or production undertaken pursuant 
to this section shall be in accordance with section 104(b) of 
the Naval Petroleum Reserves Production Act of 1976 (90 Stat. 
304; 42 U.S.C. 6504).]
                              ----------                              

  NATIONAL PETROLEUM RESERVE IN ALASKA--PUBLIC LAW 94-258 AS AMENDED 
                   THROUGH P.L. 108-68, JUNE 18, 2003

    AN ACT To authorize the Secretary of the Interior to 
establish on certain public lands of the United States national 
petroleum reserves the development of which needs to be 
regulated in a manner consistent with the total energy needs of 
the Nation, and for other purposes.
    Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, That the 
Act may be cited as the ``Naval Petroleum Reserves Production 
Act of 1976''.

TITLE I--NATIONAL PETROLEUM RESERVE IN ALASKA

           *       *       *       *       *       *       *

                     ADMINISTRATION OF THE RESERVE

    Sec. 104. [(a) Except as provided in subsection (e) of this 
section, production of petroleum from the reserve is prohibited 
and no development leading to production of petroleum from the 
reserve shall be undertaken until authorized by an Act of 
Congress.]
    [(b)] (a) Any exploration within the Utukok River, the 
Teshekpuk Lake areas, and other areas designated by the 
Secretary of the Interior containing any significant 
subsistence, recreational, fish and wildlife, or historical or 
scenic value, shall be conducted in a manner which will assure 
the maximum protection of such surface values to the extent 
consistent with the requirements of this Act for the 
exploration of the reserve.
    [(c)] (b) The Secretary of the Navy shall continue the 
ongoing petroleum exploration program within the reserve until 
the date of the transfer of jurisdiction specified in section 
103(a). Prior to the date of such transfer of jurisdiction the 
Secretary of the Navy shall--
          (1) cooperate fully with the Secretary of the 
        Interior providing him access to such facilities and 
        such information as he may request to facilitate the 
        transfer of jurisdiction;
          (2) provide to the Committee on Energy and Natural 
        Resources of the Senate and the Committee on Natural 
        Resources of the House of Representatives copies of any 
        reports, plans, or contracts pertaining to the reserve 
        that are required to be submitted to the Committees on 
        Armed Services of the Senate and the House of 
        Representatives; and
          (3) cooperate and consult with the Secretary of the 
        Interior before executing any new contract or amendment 
        to any existing contract pertaining to the reserve and 
        allow him a reasonable opportunity to comment on such 
        contract or amendment, as the case may be.
    [(d)] (c) The Secretary of the Interior shall commence 
further petroleum exploration of the reserve as of the date of 
transfer of jurisdiction specified in section 103(a). In 
conducting this exploration effort, the Secretary of the 
Interior--

           *       *       *       *       *       *       *

                          ANTITRUST PROVISIONS

    Sec. 106. Unless otherwise provided by Act of Congress, 
whenever development leading to production of petroleum is 
authorized, the provisions of subsections (g), (h), and (i) of 
section 7430 of title 10, United States Code, shall be deemed 
applicable to the Secretary of the Interior with respect to 
rules and regulations, plans of development and amendments 
thereto, and contracts and operating agreements. All plans and 
proposals submitted to the Congress under this title or 
pursuant to legislation authorizing development leading to 
production shall contain a report by the Attorney General of 
the United States on the anticipated effects upon competition 
of such plans and proposals.

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.--
          (1) In general.--Activities undertaken pursuant to 
        this Act shall include or provide for such conditions, 
        restrictions, and prohibitions as the Secretary deems 
        necessary or appropriate to prevent to the extent 
        practicable, and to mitigate, reasonably foreseeable 
        and significantly adverse effects on the surface 
        resources of the National Petroleum Reserve in Alaska.
          (2) Certain resources and facilities.--In carrying 
        out the leasing program under this section, the 
        Secretary shall minimize, to the extent practicable, 
        the impact to surface resources and consolidate 
        facilities.
    (c) Land Use Planning; BLM Wilderness Study.--The 
provisions of section 202 and section 603 of the Federal Lands 
Policy and Management Act of 1976 (90 Stat. 2743) shall not be 
applicable to the Reserve.
    (d) First Lease Sale.--The first lease sale shall be 
conducted within twenty months of the date of enactment of this 
Act: Provided, That the first lease sale shall be conducted 
only after publication of a final environmental impact 
statement if such is deemed necessary under the provisions of 
the National Environmental Policy Act of 1969 (42 U.S.C. 4321 
et seq.).
    (e) Withdrawals.--The withdrawals established by section 
102 of Public Law 94-258 are rescinded for the purposes of the 
oil and gas leasing program authorized under this section.
    (f) Bidding Systems.--Bidding systems used in lease sales 
shall be based on bidding systems included in section 205(a)(1) 
(A) through (H) of the Outer Continental Shelf Lands Act 
Amendments of 1978 (92 Stat. 629).
    (g) Geological Structures.--Lease tracts may encompass 
identified geological structures.
    (h) Size of Lease Tracts.--The size of lease tracts may be 
up to sixty thousand acres, as determined by the 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 or 
        drilling or reworking operations, as approved by the 
        Secretary, are conducted on the leased land.
          (2) 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 unless the lessee is allowed a 
        reasonable time, which shall be not less than 60 days 
        after notice by registered or certified mail, within 
        which to place the lands in producing status or unless, 
        after such status is established, production is 
        discontinued on the leased premises without permission 
        granted by the Secretary under the provisions of this 
        Act.
          (3) Renewal of leases without discoveries.--At the 
        end of the primary term of a lease, the Secretary shall 
        renew for one 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, 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.
    (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 shall, 
        among other things, examine 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 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, and 
        well reworking operations performed in accordance with 
        a unit agreement shall be deemed to be performed for 
        the benefit of all leases that are subject in whole or 
        in part to such unit agreement.
          (5) Pooling.--If separate tracts cannot be 
        independently developed and operated in conformity with 
        an established well spacing or development program, any 
        lease, or a portion thereof, may be pooled with other 
        lands, whether or not owned by the United States, under 
        a communitization or drilling agreement providing for 
        an apportionment of production or royalties among the 
        separate tracts of land comprising the drilling or 
        spacing unit when determined by theSecretary of the 
Interior (in consultation with the owners of the other land) to be in 
the public interest, and operations or production pursuant to such an 
agreement shall be deemed to be operations or production as to each 
such lease committed 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 consultation with 
                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.
          (2) Suspension of operations and production.--The 
        Secretary may direct or assent to the suspension of 
        operations and production on any lease or unit.
          (3) Suspension of payments.--If the Secretary, in the 
        interest of conservation, shall direct or assent to the 
        suspension of operations and production on any lease or 
        unit, any payment of acreage rental or minimum royalty 
        prescribed by such lease or unit likewise shall be 
        suspended during the period of suspension of operations 
        and production, and the term of such lease shall be 
        extended by adding any such suspension period to the 
        lease.
    (l) Receipts.--All receipts from sales, rentals, bonuses, 
and royalties on leases issued pursuant to this section shall 
be paid into the Treasury of the United States: Provided, That 
50 percent thereof shall be paid by the Secretary of the 
Treasury semiannually, as soon thereafter as practicable after 
March 30 and September 30 each year, to the State of Alaska 
for:
          (1) planning;
          (2) construction, maintenance, and operation of 
        essential public facilities; and
          (3) other necessary provisions of public service: 
        Provided further, That in the allocation of such funds, 
        the State shall give priority to use by subdivisions of 
        the State most directly or severely impacted by 
        development of oil and gas leased under this Act.
    (m) Explorations.--Any agency of the United States and any 
person authorized by the Secretary may conduct geological and 
geophysical explorations in the National Petroleum Reserve in 
Alaska which do not interfere with operations under any 
contract maintained or granted previously. Any information 
acquired in such explorations shall be subject to the 
conditions of 43 U.S.C. 1352(a)(1)(A).
    (n) Environmental Impact Statements.--
          (1) Judicial review.--Any action seeking judicial 
        review of the adequacy of any program or site-specific 
        environmental impact statement under section 102 of the 
        National Environmental Policy Act of 1969 (42 U.S.C. 
        4332) concerning oil and gas leasing in the National 
        Petroleum Reserve-Alaska shall be barred unless brought 
        in the appropriate District Court within 60 days after 
        notice of the availability of such statement is 
        published in the Federal Register.
          (2) Initial lease sales.--The detailed environmental 
        studies and assessments that have been conducted on the 
        exploration program and the comprehensive land-use 
        studies carried out in response to sections 105 (b) and 
        (c) of Public Law 94-258 shall be deemed to have 
        fulfilled the requirements of section 102(2)(c) of the 
        National Environmental Policy Act (Public Law 91-190), 
        with regard to the first two oil and gas lease sales in 
        the National Petroleum Reserve-Alaska: Provided, That 
        not more than a total of 2,000,000 acres may be leased 
        in these two sales: Provided further, That any 
        exploration or production undertaken pursuant to this 
        section shall be in accordance with section 104(b).
    (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)), 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'').
          (2) Partial conveyance.--
                  (A) In general.--In a case in which a 
                conveyance of a subsurface estate described in 
                paragraph (1) 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.
                  (B) Segregation of lease.--In a case 
                described in subparagraph (A), 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.
                  (C) No change in lease obligations.--The 
                segregation of the lease described in 
                subparagraph (B)(i) has no effect on the 
                obligations of the lessee under either of the 
                resulting leases, including obligations 
                relating to operations, production, or other 
                circumstances (other than payment of rentals or 
                royalties).
          (3) Authority to manage federally owned surface 
        estate.--Nothing in this subsection limits the 
        authority of the Secretary of the Interior to manage 
        the federally-owned surface estate within the Reserve.

                    AUTHORIZATION FOR APPROPRIATIONS

    [Sec. 107] Sec. 108. (a) There are authorized to be 
appropriated to the Department of the Interior such sums as may 
be necessary to carry out the provisions of this title.
    (b) If the Secretary of the Interior determines that there 
is an immediate and substantial increase in the need for 
municipal services and facilities in communities located on or 
near the reserve as a direct result of the exploration and 
study activities authorized by this title and that an unfair 
and excessive financial burden will be incurred by such 
communities as a result of the increased need for such services 
and facilities, then he is authorized to assist such 
communities in meeting the costs of providing increased 
municipal services and facilities. The Secretary of the 
Interior shall carry out the provisions of this section through 
existing Federal programs and he shall consult with the heads 
of the departments or agencies of the Federal Government 
concerned with the type of services and facilities for which 
financial assistance is being made available.
                              ----------                              

  NATURAL GAS ACT--ACT OF JUNE 21, 1938, CHAPTER 556, AS AMENDED (15 
U.S.C. 717-717W)

           *       *       *       *       *       *       *

               EXPORTATION OR IMPORTATION OF NATURAL GAS

    Sec. 3. * * *
    (d) Except as specifically provided in this part, 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) No facilities located onshore or in State waters for 
the import of natural gas from a foreign country, or the export 
of natural gas to a foreign country, shall be sited, 
constructed, expanded, or operated, unless the Commission has 
authorized such acts or operations.
    (2) The Commission shall have the exclusive authority to 
approve or deny an application for the siting, construction, 
expansion, or operation of facilities located onshore or in 
State waters for the import of natural gas from a foreign 
county or the export of natural gas to a foreign country.
    (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 finds appropriate.
    (B) The Commission shall not--
          (i) deny an application solely on the basis that the 
        applicant proposes to use the liquefied natural gas 
        import facility 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 liquefied natural 
                gas import facility 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 
                liquefied natural gas import facility; or
                  (III) a requirement to file with the 
                Commission schedules or contracts related to 
                the rates, charges, terms, or conditions of 
                service of the liquefied natural gas import 
                facility.
    (4) An order issued for a liquefied natural gas import 
facility that also offers service to customers on an open 
access basis shall not 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.

         RATES AND CHARGES; SCHEDULES; SUSPENSION OF NEW RATES

    Sec. 4. * * *
    (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 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 storage 
        capacity in areas 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 (but not more frequentlythan 
triennially) whether the market-based rate is just, reasonable, and not 
unduly discriminatory or preferential.
    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 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 in the public interest or for the protection of 
natural gas ratepayers.

           *       *       *       *       *       *       *

[HEARINGS; RULES OF PROCEDURE] PROCESS COORDINATION; HEARINGS; RULES OF 
                               PROCEDURE

    [Sec. 15. (a) Hearings under this act may be held before 
the Commission, any member or members thereof, or any 
representative of the Commission designated by it, and 
appropriate records thereof shall be kept. In any proceeding 
before it, the Commission in accordance with such rules and 
regulations as it may prescribe, may admit as a party any 
interested State, State commission, municipality or any 
representative of interested consumers or security holders, or 
any competitor of a party to such proceeding, or any other 
person whose participation in the proceeding may be in the 
public interest.]
    [(b) All hearings, investigations, and proceedings under 
this act shall be governed by rules of practice and procedure 
to be adopted by the Commission, and in the conduct thereof the 
technical rules of evidence need not be applied. No informality 
in any hearing, investigation, or proceeding or in the manner 
of taking testimony shall invalidate any order, decision, rule, 
or regulation issued under the authority of this act.]
    Sec. 15. (a) In this section:
          (1) The term ``Federal authorization'' 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.
          (2) The term ``Federal authorization'' 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)(1) With respect to an application for Federal 
authorization, the Commission shall, unless the Commission 
orders otherwise, be the lead agency for purposes of complying 
with the National Environmental Policy Act of 1969 (42 U.S.C. 
4321 et seq.).
    (2) As lead agency, the Commission, in consultation with 
affected agencies, shall prepare a single environmental review 
document, which shall be used as a basis for all decisions 
under Federal law on--
          (A) an application for authorization under section 3; 
        or
          (B) a certificate of public convenience and necessity 
        under section 7.
    (c)(1) The Commission shall, in consultation with agencies 
responsible for Federal authorizations and with due 
consideration of recommendations by the agencies, establish a 
schedule for all Federal authorizations required to be 
completed before an application under section 3 or 7 may be 
approved.
    (2) In establishing a schedule, the Commission shall comply 
with applicable schedules established by Federal law.
    (3) All Federal and State agencies with jurisdiction over 
natural gas infrastructure shall seek to coordinate their 
proceedings within the timeframes established by the Commission 
with respect to an application for authorization under section 
3 or a certificate of public convenience and necessity under 
section 7.
    (d)(1) In a case in which an administrative agency or 
officer has failed to act by the deadline established by the 
Commission under 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, take action on 
the pending application.
    (2) Based on the overall record and in consultation with 
the affected agency, the President may--
          (A) issue the necessary authorization with any 
        appropriate conditions; or
          (B) deny the application.
    (3) Not later than 90 days after the filing of an appeal, 
the President shall issue a decision as to that appeal.
    (4) In making a decision under this subsection, the 
President shall comply with applicable requirements of Federal 
law, including--
          (A) the Endangered Species Act of 1973 (16 U.S.C. 
        1531 et seq.)
          (B) the Federal Water Pollution Control Act (33 
        U.S.C. 1251 et seq.);
          (C) the National Forest Management Act of 1976 (16 
        U.S.C. 472a et seq.);
          (D) the National Environmental Policy Act of 1969 (42 
        U.S.C. 4321 et seq.);
          (E) the Federal Land Policy and Management Act of 
        1976 (43 U.S.C. 1701 et seq.);
          (F) the Coastal Zone Management Act of 1972 (16 
        U.S.C. 1451 et seq.); and
          (G) the Clean Air Act (42 U.S.C. 7401 et seq.).
    (e) Hearings under this act may be held before the 
Commission, any member or members thereof, or any 
representative of the Commission designated by it, and 
appropriate records thereof shall be kept. In any proceeding 
before it, the Commission in accordance with such rules and 
regulations as it may prescribe, may admit as a party any 
interested State, State commission, municipality or any 
representative of interested consumers or security holders, or 
any competitor of a party to such proceeding, or any other 
person whose participation in the proceeding may be in the 
public interest.
    (f) All hearings, investigations, and proceedings under 
this act shall be governed by rules of practice and procedure 
to be adopted by the Commission, and in the conduct thereof the 
technical rules of evidence need not be applied. No informality 
in any hearing, investigation, or proceeding or in the manner 
of taking testimony shall invalidate any order, decision, rule, 
or regulation issued under the authority of this act.

           *       *       *       *       *       *       *

               ENFORCEMENT OF ACT; REGULATIONS AND ORDERS

    Sec. 20. * * *
    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 person 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.

                           GENERAL PENALTIES

    Sec. 21. (a) Any person who willfully and knowingly does or 
causes or suffers to be done any act, matter, or thing in this 
act prohibited or declared to be unlawful, or who willfully and 
knowingly omits or fails to do any act, matter, or thing in 
this act required to be done, or willfully and knowingly causes 
or suffers such omission or failure, shall, upon conviction 
thereof, be punished by a fine of not more than [$5,000] 
$1,000,000 or by imprisonment for not more than [two years] 5 
years, or both.
    (b) Any person who willfully and knowingly violates any 
rule, regulation, restriction, condition, or order made or 
imposed by the Commission under authority of this act, shall, 
in addition to any other penalties provided by law, be punished 
upon conviction thereof by a fine of not exceeding [$500] 
$50,000 for each and every day during which such offense 
occurs.

                        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.

                 NATURAL GAS MARKET TRANSPARENCY RULES

    Sec. 23. (a)(1) The Commission may issue such rules as the 
Commission considers to be appropriate to establish an 
electronic information system to provide the Commission and the 
public with access to such information as is necessary to 
facilitate price transparency and participation in markets for 
the sale or transportation of natural gas in interstate 
commerce.
    (2) The system under paragraph (1) shall provide, on a 
timely basis, 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 information described in paragraph (2) 
        from any market participant; and
          (B) rely on an entity other than the Commission to 
        receive and make public the information.
    (b)(1) Rules described in subsection (a)(1), 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) This section shall not affect the exclusive 
jurisdiction of the Commodity Futures Trading Commission with 
respect to accounts, agreements, contracts, or transactions in 
commodities under the Commodity Exchange Act (7 U.S.C. 1 et 
seq.).
    (2) Any request for information to a designated contract 
market, registered derivatives transaction execution facility, 
board of trade, exchange, or market involving accounts, 
agreements, contracts, or transactions in commodities 
(including natural gas, electricity and other energy 
commodities) within the exclusive jurisdiction of the Commodity 
Futures Trading Commission shall be directed to the Commodity 
Futures Trading Commission, which shall cooperate in responding 
to any information request by the Commission.
    (d) In carrying out this section, the Commission shall 
not--
    (1) compete with, or displace from the market place, any 
price publisher(including any electronic price publisher);
          (2) regulate price publishers (including any 
        electronic price publisher); or
          (3) impose any requirements on the publication of 
        information by price publishers (including any 
        electronic price publisher).
    (e)(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.
    (f)(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.

    JURISDICTION OF OFFENSES; ENFORCEMENT OF LIABILITIES AND DUTIES

    Sec. [22] 24. The District Courts of the United States, the 
District Court of the United States for the District of 
Columbia, and the United States courts of any Territory or 
other place subject to the jurisdiction of the United States 
shall have exclusive jurisdiction of violations of this act or 
the rules, regulations, and orders thereunder, and of all suits 
in equity and actions at law, brought to enforce any liability 
or duty created by, or to enjoin any violation of, this act or 
any rule, regulation, or order thereunder. Any criminal 
proceeding shall be brought in the district wherein any act or 
transaction constituting the violation occurred. Any suit or 
action to enforce any liability or duty created by, or to 
enjoin any violation of, this act or any rule, regulation, or 
order thereunder may be brought in any such district or in the 
district wherein the defendant is an inhabitant, and process in 
such cases may be served wherever the defendant may be found. 
Judgments and decrees so rendered shall be subject to review as 
provided in [former] sections 128 and 240 of the Judicial Code, 
as amended (U.S.C., title 28, secs. 225 and 347). No costs 
shall be assessed against the Commission in any judicial 
proceeding by or against the Commission under this act.

                       SEPARABILITY OF PROVISIONS

    Sec. [23] 25. If any provision of this act, or the 
application of such provision to any person or circumstance, 
shall be held invalid, the remainder of the act, and the 
application of such provision to persons or circumstances other 
than those as to which it is held invalid, shall not be 
affected thereby.
    Sec. [24] 26. This act may be cited as the ``Natural Gas 
Act.''
                              ----------                              

           NATURAL GAS POLICY ACT OF 1978--PUBLIC LAW 95-621

SEC. 504. ENFORCEMENT. * * *

    (b) Civil Enforcement.-- * * *
          (6) Civil penalties.
                  (A) In general.--Any person who knowingly 
                violates any provision of this Act, or any 
                provision of any rule or order under this Act, 
                shall be subject to--
                          (i) except as provided in clause (ii) 
                        a civil penalty, which the Commission 
                        may assess, of not more than [$5,000] 
                        $1,000,000 for any one violation; and
                          (ii) a civil penalty, which the 
                        President may assess, of not more than 
                        [$25,000] $1,000,000, in the case of 
                        any violation of an order under section 
                        302 or an order or supplemental order 
                        under section 303.

           *       *       *       *       *       *       *

    (c) Criminal Penalties.--
          (1) Violations of act.--Except in the case of 
        violations covered under paragraph (3), any person who 
        knowingly and willfully violates any provision of this 
        Act shall be subject to--
                  (A) a fine of not more than [$5,000] 
                $1,000,000; or
                  (B) imprisonment for not more than [two 
                years] 5 years; or
                  (C) both such fine and such imprisonment.
          (2) Violation of rules or orders generally.--Except 
        in the case of violations covered under paragraph (3), 
        any person who knowingly and willfully violates any 
        rule or order under this Act (other than an order of 
        the Commission assessing a civil penalty under 
        subsection (b)(4)(E)), shall be subject to a fine of 
        not more than [$500] $50,000 for each violation.
                              ----------                              

 COASTAL ZONE MANAGEMENT ACT OF 1972--PUBLIC LAW 92-583, APPROVED OCT. 
27, 1972, 86 STAT. 1280--AS AMENDED THROUGH PUBLIC LAW 104-150, JUNE 3, 
1996

           *       *       *       *       *       *       *

    [Sec. 319. (a) Notice.--The Secretary shall publish in the 
Federal Register a notice indicating when the decision record 
has been closed on any appeal to the Secretary taken from a 
consistency determination under section 307(c) or (d). No later 
than 90 days after the date of publication of this notice, the 
Secretary shall--
          (1) issue a final decision in the appeal; or
          (2) publish a notice in the Federal Register 
        detailing why a decision cannot be issued within the 
        90-day period.
    (b) Deadline.--In the case where the Secretary publishes a 
notice under subsection (a)(2), the Secretary shall issue a 
decision in any appeal filed under section 307 no later than 45 
days after the date of the publication of the notice.
    (c) Application.--This section applies to appeals initiated 
by the Secretary and appeals filed by an applicant.]
    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 270-
        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 270-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 already existing 
                                in the sole record.
                  (B) Applicability.--The Secretary may only 
                stay the 270-day period described in paragraph 
                (1) for a period not to exceed 60 days.
    (c) Deadline for Decision.--
          (1) In general.--Not later than 90 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 45 days 
        after the date of publication of a Federal Register 
        notice explaining why a decision cannot be issued 
        within the 90-day period, the Secretary shall issue a 
        decision.

PUBLIC LAW 106-511 (114 Stat. 2376)

           *       *       *       *       *       *       *

  TITLE VI--SOUTHEASTERN ALASKA INTERTIE SYSTEM CONSTRUCTION; NAVAJO 
ELECTRIFICATION DEMONSTRATION PROGRAM

           *       *       *       *       *       *       *

SEC. 602. NAVAJO ELECTRIFICATION DEMONSTRATION PROGRAM.

    (a) Establishment.--The Secretary of Energy shall establish 
[a 5-year program] 10-year to assist the Navajo Nation to meet 
its electricity needs. The purpose of the program shall be to 
provide electric power to the estimated 18,000 occupied 
structures on the Navajo Nation that lack electric power. The 
goal of the program shall be to ensure that every household on 
the Navajo Nation that requests it has access to a reliable and 
affordable source of electricity by the year [2006.] 2011.

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--There are authorized 
to be appropriated to the Secretary of Energy to carry out this 
section $15,000,000 for each of the fiscal years 2002 through 
[2006.] 2011.
                              ----------                              

THE NATIVE AMERICAN HOUSING AND SELF-DETERMINATION ACT OF 1996--PUBLIC 
LAW 104-330, AS AMENDED (25 U.S.C. 4101 ET SEQ.)

           *       *       *       *       *       *       *

SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES. * * *

          (1) * * *
          (2) Development.--The acquisition, new construction, 
        reconstruction, or moderate or substantial 
        rehabilitation of affordable housing, which may include 
        real property acquisition, site improvement, 
        development of utilities and utility services, 
        conversion, demolition, financing, administration and 
        planning, improvement to achieve greater energy 
        efficiency and other related activities.
                              ----------                              --
--------

   ATOMIC ENERGY ACT OF 1954--ACT OF AUGUST 1, 1946, CHAPTER 724, AS 
  AMENDED BY THE ACT OF AUGUST 30, 1954, CHAPTER 1073, AS AMENDED (42 
U.S.C. 2011 ET SEQ.)

           *       *       *       *       *       *       *

CHAPTER 11. INTERNATIONAL ACTIVITIES

           *       *       *       *       *       *       *

SEC. 129. CONDUCT RESULTING IN TERMINATION OF NUCLEAR EXPORTS.

    a. No nuclear materials and equipment or sensitive nuclear 
technology shall be exported to--
          (1) any non-nuclear-weapon state that is found by the 
        President to have, at any time after the effective date 
        of this section, the effective date was March 10, 1978.
                  (A) detonated a nuclear explosive device; or
                  (B) terminated or abrogated IAEA safeguards; 
                or
                  (C) materially violated an IAEA safeguards 
                agreement; or
                  (D) engaged in activities involving source or 
                special nuclear material and having direct 
                significance for the manufacture or acquisition 
                of nuclear explosive devices, and has failed to 
                take steps which, in the President's judgment, 
                represent sufficient progress toward 
                terminating such activities; or
          (2) any nation or group of nations that is found by 
        the President to have, at any time after the effective 
        date of this section,
                  (A) materially violated an agreement for 
                cooperation with the United States, or, with 
                respect to material or equipment not supplied 
                under an agreement for cooperation, materially 
                violated the terms under which such material or 
                equipment was supplied or the terms of any 
                commitments obtained with respect thereto 
                pursuant to section 402(a) of the Nuclear Non-
                Proliferation Act of 1978; or
                  (B) assisted, encouraged, or induced any non-
                nuclear-weapon state to engage in activities 
                involving source or special nuclear material 
                and having direct significance for the 
                manufacture or acquisition of nuclear explosive 
                devices, and has failed to take steps which, in 
                the President's judgment, represent sufficient 
                progress toward terminating such assistance, 
                encouragement, or inducement; or
                  (C) entered into an agreement after the date 
                of enactment of this section for the transfer 
                of reprocessing equipment, materials, or 
                technology to the sovereign control of a non-
                nuclear-weapon state except in connection with 
                an international fuel cycle evaluation in which 
                the United States is a participant or pursuant 
                to a subsequent international agreement or 
                understanding to which the United States 
                subscribes;
unless the President determines that cessation of such exports 
would be seriously prejudicial to the achievement of United 
States non-proliferation objectives or otherwise jeopardize the 
common defense and security: Provided, That prior to the 
effective date of any such determination, the President's 
determination, together with a report containing the reasons 
for his determination, shall be submitted to the Congress and 
referred to the Committee on Foreign Affairs of the House of 
Representatives and the Committee on Foreign Relations of the 
Senate for a period of sixty days of continuous session (as 
defined in subsection 130 g. of this Act), but any such 
determination shall not become effective if during such sixty-
day period the Congress adopts a concurrent resolution stating 
in substance that it does not favor the determination. Any such 
determination shall be considered pursuant to the procedures 
set forth in section 130 of this Act for the consideration of 
Presidential submissions.
    b.(1)(A) Notwithstanding any other provision of law, 
including section 121, 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. and regulated under part 810 of title 10, Code 
of Federal Regulations (or a successor regulation), and 
nuclear-related items on the Commerce Control List maintained 
under part 774 of title 15 of the Code of Federal Regulations 
(or a successor regulation), 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 the 
items or assistance described in this paragraph to any country 
the government of which has been identified by the Secretary of 
State as engaged in state sponsorship of terrorist activities.
    (B) Countries described in subparagraph (A) specifically 
include any country the government of which has been determined 
by the Secretary of State to have repeatedly provided support 
for acts of international terrorism under--
          (i) section 620A(a) of the Foreign Assistance Act of 
        1961 (22 U.S.C. 2371(a));
          (ii) section 6(j)(1) of the Export Administration Act 
        of 1979 (50 U.S.C. App. 2405(j)(1)); or
          (iii) section 40(d) of the Arms Export Control Act 
        (22 U.S.C. 2780(d)).
    (2) This subsection does 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 the 
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--
          (A) 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
          (B)(i) the government of the 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;
          (ii) in the judgment of the President, the government 
        of the country has provided adequate, verifiable 
        assurances that the country will cease its support for 
        acts of international terrorism;
          (iii) the waiver of paragraph (1) is in the vital 
        national security interest of the United States; or
          (iv) the waiver of paragraph (1) 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.

           *       *       *       *       *       *       *

SEC. 134. FURTHER RESTRICTIONS ON EXPORTS.

    [a. The Commission may issue a license for the export of 
highly enriched uranium to be used as a fuel or target in a 
nuclear research or test reactor only if, in addition to any 
other requirement of this Act, the Commission determines that--
          [(1) there is no alternative nuclear reactor fuel or 
        target enriched in the isotope 235 to a lesser percent 
        than the proposed export, that can be used in that 
        reactor;
          [(2) the proposed recipient of that uranium has 
        provided assurances that, whenever an alternative 
        nuclear reactor fuel or target can be used in that 
        reactor, it will use that alternative in lieu of highly 
        enriched uranium; and
          [(3) the United States Government is actively 
        developing an alternative nuclear reactor fuel or 
        target that can be used in that reactor.]
    a. Definitions.--In this section--''
          (1) the term ``alternative nuclear reactor fuel or 
        target'' means a nuclear reactor fuel or target which 
        is enriched to less than 20 percent in the isotope U-
        235;
          (2) the term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235; and
          (3) a fuel or target ``can be used'' in a nuclear 
        research or test reactor if--
                  (A) the fuel or target has been qualified by 
                the Reduced Enrichment Research and Test 
                Reactor Program of the Department of Energy, 
                and
                  (B) use of the fuel or target will permit the 
                large majority of ongoing and planned 
                experiments and isotope production to be 
                conducted in the reactor without a large 
                percentage increase in the total cost of 
                operating the reactor.
    [b. As used in this section--
          [(1) the term ``alternative nuclear reactor fuel or 
        target'' means a nuclear reactor fuel or target which 
        is enriched to less than 20 percent in the isotope U-
        235;
          [(2) the term ``highly enriched uranium'' means 
        uranium enriched to 20 percent or more in the isotope 
        U-235; and
          [(3) a fuel or target ``can be used'' in a nuclear 
        research or test reactor if--
                  [(A) the fuel or target has been qualified by 
                the Reduced Enrichment Research and Test 
                Reactor Program of the Department of Energy, 
                and
                  [(B) use of the fuel or target will permit 
                the large majority of ongoing and planned 
                experiments and isotope production to be 
                conducted in the reactor without a large 
                percentage increase in the total cost of 
                operating the reactor.]
    b. Restrictions on Exports.--Except as provided in 
subsection c., the Commission; and may issue a license for the 
export of highly enriched uranium to be used as a fuel or 
target in a nuclear research or test reactor only if, in 
addition to any other requirement of this Act, the Commission 
determines that--
          (1) there is no alternative nuclear reactor fuel or 
        target enriched in the isotope 235 to a lesser percent 
        than the proposed export, that can be used in that 
        reactor;
          (2) the proposed recipient of that uranium has 
        provided assurances that, whenever an alternative 
        nuclear reactor fuel or target can be used in that 
        reactor, it will use that alternative in lieu of highly 
        enriched uranium; and
          (3) the United States Government is actively 
        developing an alternative nuclear reactor fuel or 
        target that can be used in that reactor.
    c. Medical Isotope Production.--
          (1) Definitions.--In this subsection:
                  (A) 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.
                  (B) 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--
                                  (I) therapeutic purposes; or
                                  (II) enabling the production 
                                of a useful image for use in a 
                                diagnosis of a medical 
                                condition.
                  (C) 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 b.), the Commission determines that--
                  (A) a recipient country that supplies an 
                assurance letter to the United States in 
                connection with the consideration by the 
                Commission of the export license application 
                has informed the United States that any 
                intermediate consigneesand 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 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 
                the 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 under which the National Academy of 
                Sciences shall 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 being made by the 
                        Department of Energy and other agencies 
                        and entities 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 the 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, not later than the date 
                        that is 4 years after the date of 
                        submission of the report, domestic 
                        requirements for medical isotopes 
                        without use of highly enriched uranium 
                        consistent with the feasibility 
                        criteria described in subparagraph (B).
          (5) Second report to congress.--If the National 
        Academy of Sciences determines in the study under 
        paragraph (4)(A) 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 use, 
        the Secretary shall submit to Congress a certification 
        to that effect.
          (7) Termination of review.--After the Secretary 
        submits a certification under paragraph (6), the 
        Commission shall, by rule, terminate the review by the 
        Commission of export license applications under this 
        subsection.

           *       *       *       *       *       *       *

CHAPTER 14. GENERAL AUTHORITY

           *       *       *       *       *       *       *

SEC. 170. INDEMNIFICATION AND LIMITATION OF LIABILITY.

           *       *       *       *       *       *       *

    (b) Amount and Type of Financial Protection for 
Licensees.--(1) The amount of primary financial protection 
required shall be the amount of liability insurance available 
from private sources, except that the Commission may establish 
a lesser amount on the basis of criteria set forth in writing, 
which it may revise from time to time, taking into 
consideration such factors as the following: (A) the cost and 
terms of private insurance, (B) the type, size, and location of 
the licensed activity and other factors pertaining to the 
hazard, and (C) the nature and purpose of the licensed 
activity: Provided, That for facilities designed for producing 
substantial amounts of electricity and having a rated capacity 
of 100,000 electrical kilowatts or more, the amount of primary 
financial protection required shall be the maximum amount 
available at reasonable cost and on reasonable terms from 
private sources (excluding the amount of private liability 
insurance available under the industry retrospective rating 
plan required in this subsection). Such primary financial 
protection may include private insurance, private contractual 
indemnities, self-insurance, other proof of financial 
responsibility, or a combination of such measures and shall be 
subject to such terms and conditions as the Commission may, by 
rule, regulation, or order, prescribe. The Commission shall 
require licensees that are required to have and maintain 
primary financial protection equal to the maximum amount of 
liability insurance available from private sources to maintain, 
in addition to such primary financial protection, private 
liability insurance available under an industry retrospective 
rating plan providing for premium charges deferred in whole or 
major part until public liability from a nuclear incident 
exceeds or appears likely to exceed the level of the primary 
financial protection required of the licensee involved in the 
nuclear incident: Provided, That such insurance is available 
to, and required of, all of the licensees of such facilities 
without regard to the manner in which they obtain other types 
or amounts of such primary financial protection: And provided 
further: That the maximum amount of the standard deferred 
premium that may be charged a licensee following any nuclear 
incident under such a plan shall not be more than [ 
$63,000,000] $95,800,000 (subject to adjustment for inflation 
under subsection t.), but not more than [$10,000,000 in any 1 
year] $15,000,000 in any 1 year (subject to adjustment for 
inflation under subsection t.), for each facility for which 
such licensee is required to maintain the maximum amount of 
primary financial protection: And provided further, That the 
amount which may be charged a licensee following any nuclear 
incident shall not exceed the licensee's pro rata share of the 
aggregate public liability claims and costs (excluding legal 
costs subject to subsection o. (1)(D), payment of which has not 
been authorized under such subsection) arising out of the 
nuclear incident. Payment of any State premium taxes which may 
be applicable to any deferred premium provided for in this Act 
shall be the responsibility of the licensee and shall not be 
included in the retrospective premium established by the 
Commission.

           *       *       *       *       *       *       *

    (5)(A) For purposes of this section only, the Commission 
shall consider a combination of facilities described in 
subparagraph (B) to be a single facility having a rated 
capacity of 100,000 electrical kilowatts or more.
    (B) A combination of facilities referred to in subparagraph 
(A) is 2 or more facilities located at a single site, each of 
which has a rated capacity of not less than 100,000 electrical 
kilowatts and not more than 300,000 electrical kilowatts, with 
a combined rated capacity of not more than 1,300,000 electrical 
kilowatts.
    (c) Indemnification of [Licenses] Licensees by Nuclear 
Regulatory Commission.--The Commission shall, with respect to 
licenses issued between August 30, 1954, and [December 31, 
2003] December 31, 2025, for which it requires financial 
protection of less than $560,000,000, agree to indemnify and 
hold harmless the licensee and other persons indemnified, as 
their interest may appear, from public liability arising from 
nuclear incidents which is in excess of the level of financial 
protection required of the licensee. The aggregate indemnity 
for all persons indemnified in connection with each nuclear 
incident shall not exceed $500,000,000, excluding costs of 
investigating and settling claims and defending suits for 
damage: Provided, however, That this amount of indemnity shall 
be reduced by the amount that the financial protection required 
shall exceed $60,000,000. Such a contract of indemnification 
shall cover public liability arising out of or in connection 
with the licensed activity. With respect to any production or 
utilization facility for which a construction permit is issued 
between August 30, 1954, and [December 31, 2003] December 31, 
2025, the requirements of this subsection shall apply to any 
license issued for such facility subsequent to [December 31, 
2003] December 31, 2025.
    (d) Indemnification of Contractors by Department of 
Energy.--(1)(A) In addition to any other authority the 
Secretary of Energy (in this section referred to as the 
``Secretary'') may have, the Secretary shall, until [December 
31, 2006] December 31, 2025, enter into agreements of 
indemnification under this subsection with any person who may 
conduct activities under a contract with the Department of 
Energy that involve the risk of public liability and that are 
not subject to financial protection requirements under 
subsection b. or agreements of indemnification under subsection 
c. or k.

           *       *       *       *       *       *       *

    [(2) In agreements of indemnification entered into under 
paragraph (1), the Secretary may require the contractor to 
provide and maintain financial protection of such a type and in 
such amounts as the Secretary shall determine to be appropriate 
to cover public liability arising out of or in connection with 
the contractual activity, and shall indemnify the persons 
indemnified against such claims above the amount of the 
financial protection required, to the full extent of the 
aggregate public liability of the persons indemnified for each 
nuclear incident, including such legal costs of the contractor 
as are approved by the Secretary.
    [(3)(A) Notwithstanding paragraph (2), if the maximum 
amount of financial protection required of the contractor, 
shall at all times remain equal to or greater than the maximum 
amount of financial protection required of licensees under 
subsection b.
    [(B) The amount of indemnity provided contractors under 
this subsection shall not, at any time, be reduced in the event 
that the maximum amount of financial protection required of 
licensees is reduced.
    [(C) All agreements of indemnification under which the 
Department of Energy (or its predecessor agencies) may be 
required to indemnify any person, shall be deemed to be 
amended, on the date of the enactment of the Price-Anderson 
Amendments Act of 1988, to reflect the amount of indemnity for 
public liability and any applicable financial protection 
required of the contractor under this subsection on such date.]
    (2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
          (A) may require the contractor to provide and 
        maintain financial protection of such a type and in 
        such amounts as the Secretary determines 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 expenses incurred by the 
        contractor as are approved by the Secretary.
    (3) All agreements of indemnification under which the 
Department of Energy (or 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.

           *       *       *       *       *       *       *

    (5) In the case of nuclear incidents occurring outside the 
United States, the amount of the indemnity provided by the 
Secretary under this subsection shall not exceed [$100,000,000] 
$500,000,000.

           *       *       *       *       *       *       *

    (e) Limitation on Aggregate Public Liability.--(1) The 
aggregate public liability for a single nuclear incident of 
persons indemnified, including such legal costs as are 
authorized to be paid under subsection o. (1)(D), shall not 
exceed--
          (A) in the case of facilities designed for producing 
        substantial amounts of electricity and having a rated 
        capacity of 100,000 electrical kilowatts or more, the 
        maximum amount of financial protection required of such 
        facilities under subsection b. (plus any surcharge 
        assessed under subsection o. (1)(E));
          (B) in the case of contractors with whom the 
        Secretary has entered into an agreement of 
        indemnification under subsection d., [the maximum 
        amount of financial protection required under 
        subsection b. or] the amount of indemnity and financial 
        protection that may be required under [paragraph (3) of 
        subsection d., whichever amount is more] paragraph (2) 
        of subsection d.; and
          (C) in the case of all licensees of the Commission 
        required to maintain financial protection under this 
        section--
                  (i) $500,000,000, together with the amount of 
                financial protection required of the licensee; 
                or
                  (ii) if the amount of financial protection 
                required of the licensee exceeds $60,000,000, 
                $560,000,000 or the amount of financial 
                protection required of the licensee, whichever 
                amount is more.

           *       *       *       *       *       *       *

    (4) With respect to any nuclear incident occurring outside 
of the United States to which an agreement of indemnification 
entered into under the provisions of subsection d. is 
applicable, such aggregate public liability shall not exceed 
the amount of [$100,000,000] $500,000,000, together with the 
amount of financial protection required of the contractor.

           *       *       *       *       *       *       *

    (k) Exemption from Financial Protection Requirement for 
Nonprofit Educational Institutions.--With respect to any 
license issued pursuant to section 53, 63, 81, 104 a., or 104 
c. for the conduct of educational activities to a person found 
by the Commission to be a nonprofit educational institution, 
the Commission shall exempt such licensee from the financial 
protection requirement of subsection a. With respect to 
licenses issued between August 30, 1954, and [August 1, 2002] 
December 31, 2025, for which the Commission grants such 
exemption:
          (1) the Commission shall agree to indemnify and hold 
        harmless the licensee and other persons indemnified, as 
        their interests may appear, from public liability in 
        excess of $250,000 arising from nuclear incidents. The 
        aggregate indemnity for all persons indemnified in 
        connection with each nuclear incident shall not exceed 
        $500,000,000, including such legal costs of the 
        licensee as are approved by the Commission;
          (2) such contracts of indemnification shall cover 
        public liability arising out of or in connection with 
        the licensed activity; and shall include damage to 
        property of persons indemnified, except property which 
        is located at the site of and used in connection with 
        the activity where the nuclear incident occurs; and
          (3) such contracts of indemnification, when entered 
        into with a licensee having immunity from public 
        liability because it is a State agency, shall provide 
        also that the Commission shall make payments under the 
        contract on account of activities of the licensee in 
        the same manner and to the same extent as the 
        Commission would be required to do if the licensee were 
        not such a State agency.
Any licensee may waive an exemption to which it is entitled 
under this subsection. With respect to any production or 
utilization facility for which a construction permit is issued 
between August 30, 1954, and [August 1, 2002] December 31, 
2025, the requirements of this subsection shall apply to any 
license issued for such facility subsequent to August 1, 2002.

           *       *       *       *       *       *       *

    (p) Reports to Congress.--The Commission and the Secretary 
shall submit to the Congress by [August 1, 1998] December 31, 
2021, detailed reports concerning the need for continuation or 
modification of the provisions of this section, taking into 
account the condition of the nuclear industry, availability of 
private insurance, and the state of knowledge concerning 
nuclear safety at that time, among other relevant factors, and 
shall include recommendations as to the repeal or modification 
of any of the provisions of this section.

           *       *       *       *       *       *       *

    (t) Inflation Adjustment.--(1) The Commission shall adjust 
the amount of the maximum total and annual standard deferred 
premium under subsection b. (1) not less than once during each 
5-year period following [the date of the enactment of the 
Price-Anderson Amendments Act of 1988] August 20, 2003, in 
accordance with the aggregate percentage change in the Consumer 
Price Index since--
          (A) [such date of enactment] August 20, 2003, in the 
        case of the first adjustment under this subsection; or
          (B) the previous adjustment under this subsection.
    (2) The Secretary shall adjust the amount of 
indemnification provided under an agreement of indemnification 
under subsection d. not less than once during each 5-year 
period following July 1, 2003, in accordance with the aggregate 
percentage change in the Consumer Price Index since--
          (A) that date, in the case of the first adjustment 
        under this paragraph; or
          (B) the previous adjustment under this paragraph.
    [(2)] (3) For purposes of this subsection, the term 
``Consumer Price Index'' means the Consumer Price Index for all 
urban consumers published by the Secretary of Labor.

           *       *       *       *       *       *       *

SEC. 234A. CIVIL MONETARY PENALTIES FOR VIOLATIONS OF DEPARTMENT OF 
                    ENERGY SAFETY REGULATIONS.

           *       *       *       *       *       *       *

    (b)(1) The Secretary shall have the power to compromise, 
modify or remit, with or without conditions, such civil 
penalties and to prescribe regulations as he may deem necessary 
to implement this section.
    (2) In determining the amount of any civil penalty under 
this subsection, the Secretary shall take into account the 
nature, circumstances, extent, and gravity of the violation or 
violations and, with respect to the violator, ability to pay, 
effect on ability to continue to do business, any history of 
prior such violations, the degree of culpability, and such 
other matters as justice may require. [In implementing this 
section, the Secretary shall determine by rule whether 
nonprofit educational institutions should receive automatic 
remission of any penalty under this section.]

           *       *       *       *       *       *       *

    [(d) The provisions of this section shall not apply to:
          [(1) The University of Chicago (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Argonne National Laboratory;
          [(2) The University of California (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Los Alamos National Laboratory, 
        Lawrence Livermore National Laboratory, and Lawrence 
        Berkeley National Laboratory;
          [(3) American Telephone and Telegraph Company and its 
        subsidiaries (and any subcontractors or suppliers 
        thereto) for activities associated with Sandia National 
        Laboratories;
          [(4) Universities Research Association, Inc. (and any 
        subcontractors or suppliers thereto) for activities 
        associated with FERMI National Laboratory;
          [(5) Princeton University (and any subcontractors or 
        suppliers thereto) for activities associated with 
        Princeton Plasma Physics Laboratory;
          [(6) The Associated Universities, Inc. (and any 
        subcontractors or suppliers thereto) for activities 
        associated with the Brookhaven National Laboratory; and
          [(7) Battelle Memorial Institute (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Pacific Northwest Laboratory.]
    (d)(1) Notwithstanding subsection (a), in the case of any 
not-for-profit contractor, subcontractor, or supplier, the 
total amount of civil penalties paid under subsection a. may 
not exceed the total amount of fees paid within any one-year 
period (as determined by the Secretary) under the contract 
under which the violation occurs.
    (2) For purposes of this section, the term ``not-for-
profit'' means that no part of the net earnings of the 
contractor, subcontractor, or supplier inures to the benefit of 
any natural person or for-profit artificial person.
                              ----------                              --
--------

            TITLE 23, UNITED STATES CODE--PUBLIC LAW 109-13

HIGHWAYS

           *       *       *       *       *       *       *

CHAPTER 1. FEDERAL-AID HIGHWAYS

           *       *       *       *       *       *       *

Subchapter I--General Provisions

           *       *       *       *       *       *       *

Sec. 127. Vehicle weight limitations--Interstate System

    (a) In General.--
          (1) No funds shall be apportioned in any fiscal year 
        under section 104(b)(1) of this title [23 USCS 
        Sec. 104(b)(1)] to any State which does not permit the 
        use of the National System of Interstate and Defense 
        Highways [The Dwight D. Eisenhower System of Interstate 
        and Defense Highways] within its boundaries by vehicles 
        with a weight of twenty thousand pounds carried on any 
        one axle, including enforcement tolerances, or with a 
        tandem axle weight of thirty-four thousand pounds, 
        including enforcement tolerances, or a gross weight of 
        at least eighty thousand pounds for vehicle 
        combinations of five axles or more.
          (2) However, the maximum gross weight to be allowed 
        by any State for vehicles using the National System of 
        Interstate and Defense Highways [The Dwight D. 
        Eisenhower System of Interstate and Defense Highways] 
        shall be twenty thousand pounds carried on one axle, 
        including enforcement tolerances, and a tandem axle 
        weight of thirty-four thousand pounds, including 
        enforcement tolerances and with an overall maximum 
        gross weight, including enforcement tolerances, on a 
        group of two or more consecutive axles produced by 
        application of the following formula: 
        
        
where W equals overall gross weight on any group of two or more 
consecutive axles to the nearest five hundred pounds, L equals 
distance in feet between the extreme of any group of two or 
more consecutive axles, and N equals number of axles in group 
under consideration, except that two consecutive sets of tandem 
axles may carry a gross load of thirty-four thousand pounds 
each providing the overall distance between the first and last 
axles of such consecutive sets of tandem axles is (1) thirty-
six feet or more, or (2) in the case of a motor vehicle hauling 
any tank trailer, dump trailer, or ocean transport container 
before September 1, 1989, is 30 feet or more: Provided, That 
such overall gross weight may not exceed eighty thousand 
pounds, including all enforcement tolerances, except for 
vehicles using Interstate Route 29 between Sioux City, Iowa, 
and the border between Iowa and South Dakota or vehicles using 
Interstate Route 129 between Sioux City, Iowa, and the border 
between Iowa and Nebraska, and except for those vehicles and 
loads which cannot be easily dismantled or divided and which 
have been issued special permits in accordance with applicable 
State laws, or the corresponding maximum weights permitted for 
vehicles using the public highways of such State under laws or 
regulations established by appropriate State authority in 
effect on July 1, 1956, except in the case of the overall gross 
weight of any group of two or more consecutive axles on any 
vehicle (other than a vehicle comprised of a motor vehicle 
hauling any tank trailer, dump trailer, or ocean transport 
container on or after September 1, 1989), on the date of 
enactment of the Federal-Aid Highway Amendments of 1974 
[enacted Jan. 4, 1975], whichever is the greater.
          (3) Any amount which is withheld from apportionment 
        to any State pursuant to the foregoing provisions shall 
        lapse if not released and obligated within the 
        availability period specified in section 118(b)(1) of 
        this title.
          (4) This section shall not be construed to deny 
        apportionment to any State allowing the operation 
        within such State of any vehicles or combinations 
        thereof, other than vehicles or combinations subject to 
        subsection (d) of this section, which the State 
        determines could be lawfully operated within such State 
        on July 1, 1956, except in the case of the overall 
        gross weight of any group of two or more consecutive 
        axles, on the date of enactment of the Federal-Aid 
        Highway Amendments of 1974 [enacted Jan. 4, 1975].
          (5) With respect to the State of Hawaii, laws or 
        regulations in effect on February 1, 1960, shall be 
        applicable for the purposes of this section in lieu of 
        those in effect on July 1, 1956.
          (6) With respect to the State of Colorado, vehicles 
        designed to carry 2 or more precast concrete panels 
        shall be considered a nondivisible load.
          (7) With respect to the State of Michigan, laws or 
        regulations in effect on May 1, 1982, shall be 
        applicable for the purposes of this subsection.
          (8) With respect to the State of Maryland, laws and 
        regulations in effect on June 1, 1993, shall be 
        applicable for the purposes of this subsection.
          (9) The State of Louisiana may allow, by special 
        permit, the operation of vehicles with a gross vehicle 
        weight of up to 100,000 pounds for the hauling of 
        sugarcane during the harvest season, not to exceed 100 
        days annually.
          (10) With respect to Interstate Routes 89, 93, and 95 
        in the State of New Hampshire, State laws (including 
        regulations) concerning vehicle weight limitations that 
        were in effect on January 1, 1987, and are applicable 
        to State highways other than the Interstate System, 
        shall be applicable in lieu of the requirements of this 
        subsection.
          (11) With respect to that portion of the Maine 
        Turnpike designated Interstate Route 95 and 495, and 
        that portion of Interstate Route 95 from the southern 
        terminus of the Maine Turnpike to the New Hampshire 
        State line, laws (including regulations) of the State 
        of Maine concerning vehicle weight limitations that 
        were in effect on October 1, 1995, and are applicable 
        to State highways other than the Interstate System, 
        shall be applicable in lieu of the requirements of this 
        subsection.
          (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 250 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 250-pound gross weight 
                        increase is not used for any purpose 
                        other than the use of idle reduction 
                        technology described in subparagraph 
                        (A).

           *       *       *       *       *       *       *

DEPARTMENT OF ENERGY ORGANIZATION ACT--PUBLIC LAW 95-91, AS AMENDED (42 
U.S.C. 7101 ET SEQ.)

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

                TITLE II--ESTABLISHMENT OF THE DEPARTMENT

Sec. 201. Establishment.
Sec. 202. Principal officers.
Sec. 203. Assistant Secretaries.
Sec. 204. Federal Energy Regulatory Commission.
Sec. 205. Energy Information Administration.
Sec. 206. Economic Regulatory Administration.
Sec. 207. Comptroller General functions.
Sec. 208. [Repealed].
[Sec. 209.] Sec. 209. Office of Science.
Sec. 210. Leasing Liaison Committee.
Sec. 211. Office of Minority Economic Impact.
[Sec. 212. Repealed P.L. 106-65, Sec. 3294(d)(1), Oct. 5, 1999, 113 
          Stat. 970]
[213.]  Sec. 213. Establishment of policy for National Nuclear Security 
          Administration.
[214.] Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies.
[215.] Sec. 215. Office of Counterintelligence.
[216.] Sec. 216. Office of Intelligence.
Sec. 217. Office of Indian Energy Policy and Programs.

TITLE II--ESTABLISHMENT OF THE DEPARTMENT

           *       *       *       *       *       *       *

                           PRINCIPAL OFFICERS

    Sec. 202. (a) There shall be in the Department a Deputy 
Secretary, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall be 
compensated at the rate provided for level II of the Executive 
Schedule under section 5313 of title 5. The Deputy Secretary 
shall act for and exercise the functions of the Secretary 
during the absence or disability of the Secretary or in the 
event the office of Secretary becomes vacant. The Secretary 
shall designate the order in which the Under Secretary and 
other officials shall act for and perform the functions of the 
Secretary during the absence or disability of both the 
Secretary and Deputy Secretary or in the event of vacancies in 
both of those offices.
    [(b) There shall be in the Department an Under Secretary 
and a General Counsel, who shall be appointed by the President, 
by and with the advice and consent of the Senate, and who shall 
perform such functions and duties as the Secretary shall 
prescribe. The Under Secretary shall bear primary 
responsibility for energy conservation. The Under Secretary 
shall be compensated at the rate provided for level III of the 
Executive Schedule under section 5314 of title 5, and the 
General Counsel shall be compensated at the rate provided for 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code.]
    (b)(1) There shall be in the Department an Under Secretary 
for Energy and Science, who shall be appointed by the 
President, by and with the advice and consent of the Senate.
    (2) The Under Secretary shall be compensated at the rate 
provided for level III of theExecutive Schedule under section 
5314 of title 5, United States Code.
    (3) The Under Secretary for Energy and Science shall be 
appointed from among persons who--
          (A) have extensive background in scientific or 
        engineering fields; and
          (B) are well qualified to manage the civilian 
        research and development programs of the Department.
    (4) The Under Secretary for Energy and 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) bear primary responsibility for energy 
        conservation; and
          (G) exercise authority and responsibility over 
        Assistant Secretaries carrying out energy research and 
        development and energy technology functions under 
        sections 203 and 209, as well as other elements of the 
        Department assigned by the Secretary.
    (c)(1) There shall be in the Department an Under Secretary 
for Nuclear Security, who shall be appointed by the President, 
by and with the advice and consent of the Senate. The Under 
Secretary shall be compensated at the rate provided for at 
level III of the Executive Schedule under section 5314 of title 
5.
    (2) The Under Secretary for Nuclear Security shall be 
appointed from among persons who--
          (A) have extensive background in national security, 
        organizational management, and appropriate technical 
        fields; and
          (B) are well qualified to manage the nuclear weapons, 
        nonproliferation, and materials disposition programs of 
        the National Nuclear Security Administration in a 
        manner that advances and protects the national security 
        of the United States.
          (3) The Under Secretary for Nuclear Security shall 
        serve as the Administrator for Nuclear Security under 
        section 2402 of title 50. In carrying out the functions 
        of the Administrator, the Under Secretary shall be 
        subject to the authority, direction, and control of the 
        Secretary. Such authority, direction, and control may 
        be delegated only to the Deputy Secretary of Energy, 
        without redelegation.
    (d)(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.

           *       *       *       *       *       *       *

                         ASSISTANT SECRETARIES

    Sec. 203 (a) [There shall be in the Department six 
Assistant Secretaries] Except as provided in section 209, there 
shall be in the Department seven Assistant Secretaries, each of 
whom shall be appointed by the President, by and with the 
advice and consent of the Senate; who shall be compensated at 
the rate provided for at level IV of the Executive Schedule 
under section 5315 of title 5; and who shall perform, in 
accordance with applicable law, such of the functions 
transferred or delegated to, or vested in, the Secretary as he 
shall prescribe in accordance with the provisions of this 
chapter. The functions which the Secretary shall assign to the 
Assistant Secretaries include, but are not limited to, the 
following:

           *       *       *       *       *       *       *

                   ENERGY INFORMATION ADMINISTRATION

    Sec. 205. * * *
    (n) * * *
    (m)(1) In order to improve the ability to evaluate the 
effectiveness of the renewable fuels mandate of the United 
States, 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.
    (2) In conducting the survey, the Administrator shall 
collect information both on a national and regional basis, 
including--
          (A) information on--
                  (i) the quantity of renewable fuels produced;
                  (ii) the quantity of renewable fuels blended;
                  (iii) the quantity of renewable fuels 
                imported; and
                  (iv) the quanity of renewable fuels demanded; 
                and
          (B) market price data.

           *       *       *       *       *       *       *

                           [OFFICE OF SCIENCE

    [Sec. 209. (a) There shall be within the Department an 
Office of Science to be headed by a Director, who shall be 
appointed by the President, by and with the advice and consent 
of the Senate, and who shall be compensated at the rate 
provided for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.
    [(b) It shall be the duty and responsibility of the 
Director--
          [(1) to advise the Secretary with respect to the 
        physical research program transferred to the Department 
        from the Energy Research and Development 
        Administration;
          [(2) to monitor the Department's energy research and 
        development programs in order to advise the Secretary 
        with respect to any undesirable duplication or gaps in 
        such programs;
          [(3) to advise the Secretary with respect to the 
        well-being and management of the multipurpose 
        laboratories under the jurisdiction of the Department, 
        excluding laboratories that constitute part of the 
        nuclear weapons complex;
          [(4) to advise the Secretary with respect to 
        education and training activities required for 
        effective short- and long-term basic and applied 
        research activities of the Department;
          [(5) to advise the Secretary with respect to grants 
        and other forms of financial assistance required for 
        effective short- and long-term basic and applied 
        research activities of the Department; and
          [(6) to carry out such additional duties assigned to 
        the Office by the Secretary relating to basic and 
        applied research, including but not limited to 
        supervision or support of research activities carried 
        out by any of the Assistant Secretaries designated by 
        section 203 of this Act, as the Secretary considers 
        advantageous.]

                           OFFICE OF SCIENCE

    Sec. 209. (a) There shall be within the Department an 
Office of Science, to be headed by an Assistant Secretary for 
Science, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall be 
compensated at the rate provided for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code.
    (b) The Assistant Secretary for Science shall be in 
addition to the Assistant Secretaries provided for under 
section 203 of this Act.
    (c) It shall be the duty and responsibility of the 
Assistant Secretary for Science to carry out the fundamental 
science and engineering research functions of the Department, 
including the responsibility for policy and management of such 
research, as well as other functions vested in the Secretary 
which he may assign to the Assistant Secretary.

           *       *       *       *       *       *       *

              OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

    Sec. 217. (a) Establishment.--
          (1) There is established within the Department an 
        Office of Indian Energy Policy and Programs (referred 
        to in this section as the ``Office'').
          (2) The Office shall be headed by a Director, to 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 that are--
                  (A) located on Indian land; or
                  (B) acquired, constructed, or improved (in 
                whole or in part) with Federal funds.

           *       *       *       *       *       *       *

                               CONTRACTS

    Sec. 646. * * *
    (f) * * *
    (g)(1) In addition to other authorities granted to the 
Secretary under any other provision of law, the Secretary may 
enter into other transactions on such terms as the Secretary 
may consider appropriate in furtherance of research, 
development, or demonstration functions vested in the 
Secretary.
    (2) The other transactions shall not be subject to section 
9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 U.S.C. 5908).
    (3)(A) The Secretary shall ensure that--
          (i) to the maximum extent the Secretary determines 
        practicable, no transaction entered into under 
        paragraph (1) provides for research, development, or 
        demonstration that duplicates research, development, or 
        demonstration being conducted under existing projects 
        carried out by the Department;
          (ii) to the extent the Secretary determines 
        practicable, the funds provided by the Federal 
        Government under a transaction authorized by paragraph 
        (1) do not exceed the total amount provided by other 
        parties to the transaction; and
          (iii) to the extent the Secretary determines 
        practicable, competitive, merit-based selection 
        procedures shall be used when entering into 
        transactions under paragraph (1).
    (B) A transaction authorized by paragraph (1) may be used 
for a research, development, or demonstration project only if 
the Secretary determines the use of a standard contract, grant, 
or cooperative agreement for the project is not feasible or 
appropriate.
    (4)(A) The Secretary shall protect from disclosure 
(including disclosure under section 552 of title 5, United 
States Code) for up to 5 years after the date the information 
is received by the Secretary--
          (i) a proposal, proposal abstract, and supporting 
        documents submitted to the Department in a competitive 
        or noncompetitive process having the potential for 
        resulting in an award to the party submitting the 
        information entering into a transaction under paragraph 
        (1); and
          (ii) a business plan and technical information 
        relating to a transaction authorized by paragraph (1) 
        submitted to the Department as confidential business 
        information.
    (B) The Secretary may protect from disclosure, for up to 5 
years after the information was developed, any information 
developed pursuant to a transaction under paragraph (1) which 
developed information is of a character that it would be 
protected from disclosure under section 552(b)(4) of title 5, 
United States Code, if obtained from a person other than a 
Federal agency.
    (5)(A) Not later than 90 days after the date of enactment 
of this subsection, the Secretary shall prescribe guidelines 
for using other transactions authorized by paragraph (1).
    (B) The guidelines shall be published in the Federal 
Register for public comment under rulemaking procedures of the 
Department.
    (6) The authority of the Secretary under this subsection 
may be delegated only to an officer of the Department who is 
appointed by the President by and with the advice and consent 
of the Senate and may not be delegated to any other person.
                              ----------                              --
--------

         DEPARTMENT OF ENERGY SCIENCE EDUCATION ENHANCEMENT ACT

PART E OF TITLE XXXI OF PUBLIC LAW 101-510, AS AMENDED (42 U.S.C. 7381-
7381E)

           *       *       *       *       *       *       *

SEC. 3164. SCIENCE EDUCATION PROGRAMS

    (a) Programs.--The Secretary is authorized to establish 
programs to enhance the quality of mathematics, science, and 
engineering education. Any such programs shall be operated at 
or through the support of Department research and development 
facilities, shall use the scientific resources of the 
Department, and shall be consistent with the overall Federal 
plan for education and human resources in science and 
technology developed by the Federal Coordinating Council for 
Science, Engineering, and Technology.
    (b) Relationship to Other Department Activities.--The 
programs described in subsection (a) shall supplement and be 
coordinated with current activities of the Department, but 
shall not supplant them.
    (c) Programs for Students From Under-Represented Groups.--
In carrying out a program under subsection (a), the Secretary 
shall give priority to activities that are designed to 
encourage students from under-represented groups to pursue 
scientific and technical careers.

SEC. 3165. LABORATORY COOPERATIVE SCIENCE CENTERS AND OTHER AUTHORIZED 
                    EDUCATION ACTIVITIES

           *       *       *       *       *       *       *

          (13) Establish a prefreshman enrichment program in 
        which middle-school students attend summer workshops on 
        mathematics, science, and engineering conducted by 
        universities on their campuses.
          (14) Support competitive events for students, under 
        supervision of teachers, designed to encourage student 
        interest and knowledge in science and mathematics.
          (15) Support comptetively-awarded science resource 
        centers at National Laboratories to promote 
        professional development of mathematics teachers and 
        science teachers who teach in grades from kindergarten 
        through grade 12.
          (16) Support summer internships at National 
        Laboratories for mathematics teachers and science 
        teachers who teach in grades from kindergarten through 
        grade 12.

           *       *       *       *       *       *       *

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 that term in section 
        902 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(8) 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 direct the 
Director of each National Laboratory, and may direct the head 
of any science facility, to increase the participation of 
historically Black colleges or universities, Hispanic-serving 
institutions, or tribal colleges in activities that increase 
the capacity of the historically Black colleges or 
universities, Hispanic-serving institutions, or tribal colleges 
to train personnel in science or engineering.
    (c) Activities.--An activity under subsection (b) may 
include--
          (1) collaborative research;
          (2) equipment transfer;
          (3) training activities conducted at a National 
        Laboratory or science facility; and
          (4) mentoring activities conducted at a National 
        Laboratory or science facility.
      (d) Report.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall submit to the 
Congress a report on the activities carried out under this 
section.

SEC. [3167.] 3168. DEFINITIONS.

    In this part:
          (1) The term ``Secretary'' means the Secretary of 
        Energy.
          (2) The term ``Department'' means the Department of 
        Energy.
          (3) The term ``Department research and development 
        facilities'' means all Department of Energy single-
        purpose and multipurpose National Laboratories and 
        research and development facilities and programs, and 
        any other facility or program operated by a contractor 
        funded from the Office of Energy Research of the 
        Department of Energy.
          (4) The term ``local educational agency'' has the 
        meaning given that term by section 1471(12) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 2891(12)).

SEC. [3168.] 3169. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary 
for carrying out university research support and other science, 
mathematics, and engineering education programs authorized by 
this subchapter and administered by the Office of Science of 
the Department of Energy, $40,000,000 for fiscal year 1991; and 
$40,000,000 for each of fiscal years 2004 through 2008.
                              ----------                              --
--------

 SPARK M. MATSUNAGA HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
ACT OF 1990--PUBLIC LAW 101-566, AS AMENDED (42 U.S.C. 12401 ET SEQ.)

           *       *       *       *       *       *       *

[SEC. 101. SHORT TITLE.

    This Act may be referred to as the ``Spark M. Matsunaga 
Hydrogen Research, Development, and Demonstration Act of 
1990''.

[SEC. 102. FINDING, PURPOSES, AND DEFINITION.

    [(a) Finding.--Congress finds that it is in the national 
interest to accelerate efforts to develop a domestic capability 
to economically produce hydrogen in quantities that will make a 
significant contribution toward reducing the Nation's 
dependence on conventional fuels.
    [(b) Purposes.--The purposes of this Act are--
          [(1) to direct the Secretary of Energy to conduct a 
        research, development, and demonstration program 
        leading to the production, storage, transport, and use 
        of hydrogen for industrial, residential, 
        transportation, and utility applications;
          [(2) to direct the Secretary to develop a technology 
        assessment and information transfer program among the 
        Federal agencies and aerospace, transportation, energy, 
        and other entities; and
          [(3) to develop renewable energy resources as a 
        primary source of energy for the production of 
        hydrogen.
    [(c) Definition.--As used in this Act, the term:
          [(1) ``critical technology'' (or critical technical 
        issue'') means a technology (or issue) that, in the 
        opinion of the Secretary, requires understanding and 
        development in order to take the next needed step in 
        the development of hydrogen as an economic fuel or 
        storage medium;
          [(2) ``Department'' means the Department of Energy; 
        and
          [(3) ``Secretary'' means the Secretary of Energy.

[SEC. 103. COMPREHENSIVE MANAGEMENT PLAN.

    [(a) Plan.--The Secretary shall prepare a comprehensive 5-
year program management plan for research and development 
activities, which shall be conducted over a period of no less 
than 5 years and shall be consistent with the provisions of 
sections 104 and 105. In the preparation of such plan, the 
Secretary shall consult with the Administrator of the National 
Aeronautics and Space Administration, the Secretary of 
Transportation, the Hydrogen Technical Advisory Panel 
established under section 108, and the heads of such other 
Federal agencies and such public and private organizations as 
he deems appropriate. The plan shall be structured to identify 
and address areas of research critical to the realization of a 
domestic hydrogen production capability within the shortest 
time practicable.
    [(b) Contents of Plan.--Within 180 days after the date of 
the enactment of this Act, the Secretary shall transmit the 
comprehensive program management plan to the Committee on 
Science, Space, and Technology of the House of Representatives 
and the Committee on Energy and Natural Resources of the 
Senate. Subsequent plans shall be incorporated in the 
management plan under this section. The plan shall include--
          [(1) a prioritization of research areas critical to 
        the economic use of hydrogen as a fuel and energy 
        storage medium;
          [(2) the program elements, management structure, and 
        activities, including program responsibilities of 
        individual agencies and individual institutional 
        elements;
          [(3) the program strategies including technical 
        milestones to be achieved toward specific goals during 
        each fiscal year for all major activities and projects;
          [(4) the estimated costs of individual program items, 
        including current as well as proposed funding levels 
        for each of the 5 years of the plan for each of the 
        participating agencies;
          [(5) a description of the methodology of coordination 
        and technology transfer; and
          [(6) the proposed participation by industry and 
        academia in the planning and implementation of the 
        program.
    [(c) Demonstration Plan.--The Secretary shall, in 
consultation with the Secretary of Transportation, the 
Administrator of the National Aeronautics and Space 
Administration, and the Hydrogen Technical Advisory Panel 
established under section 108, also prepare a comprehensive 
large-scale hydrogen demonstration plan with respect to 
demonstrations carried out pursuant to section 105. Subsequent 
plans shall be incorporated in the management plan under this 
section. Such plan shall include--
          [(1) a description of the necessary research and 
        development activities that must be completed before 
        initiation of a large-scale hydrogen production and 
        storage demonstration program;
          [(2) an assessment of the appropriateness of a large-
        scale demonstration immediately upon completion of the 
        necessary research and development activities;
          [(3) an implementation schedule with associated 
        budget and program management resource requirements; 
        and
          [(4) a description of the role of the private sector 
        in carrying out the demonstration program.

[SEC. 104. RESEARCH AND DEVELOPMENT.

    [(a) Program.--The Secretary shall conduct a research and 
development program, consistent with the comprehensive 5-year 
program management plan under section 103, to ensure the 
development of a domestic hydrogen fuel production capability 
within the shortest time practicable consistent with market 
conditions.
    [(b) Research.--(1) Particular attention shall be given to 
developing an understanding and resolution of all critical 
technical issues preventing the introduction of hydrogen into 
the marketplace.
    [(2) The Secretary shall initiate research or accelerate 
existing research in critical technical issues that will 
contribute to the development of more economic hydrogen 
production and use, including, but not limited to, critical 
technical issues with respect to production, liquefaction, 
transmission, distribution, storage, and use (including use of 
hydrogen in surface transportation).
    [(c) Renewable Energy Priority.--The Secretary shall give 
priority to those production techniques that use renewable 
energy resources as their primary source of energy for hydrogen 
production.
    [(d) New Technologies.--The Secretary shall, for the 
purpose of performing his responsibilities pursuant to this 
Act, solicit proposals for and evaluate any reasonable new or 
improved technology that could lead or contribute to the 
development of economic hydrogen production storage and 
utilization.
    [(e) Information.--The Secretary shall conduct evaluations, 
arrange for tests and demonstrations, and disseminate to 
developers information, data, and materials necessary to 
support efforts undertaken pursuant to this section, consistent 
with section 106.

[SEC. 105. DEMONSTRATIONS.

    [(a) Requirement.--The Secretary shall conduct 
demonstrations of critical technologies, preferably in self-
contained locations, so that technical and non-technical 
parameters can be evaluated to best determine commercial 
applicability of the technology.
    [(b) Small-Scale Demonstrations.--Concurrently with 
activities conducted pursuant to section 104, the Secretary 
shall conduct small-scale demonstrations of hydrogen technology 
at self-contained sites.

[SEC. 106. TECHNOLOGY TRANSFER PROGRAM.

    [(a) Program.--The Secretary shall conduct a program 
designed to accelerate wider application of hydrogen 
production, storage, utilization, and other technologies 
available in near term as a result of aerospace experience as 
well as other research progress by transferring critical 
technologies to the private sector. The Secretary shall direct 
the program with the advice and assistance of the Hydrogen 
Technical Advisory Panel established under section 108. The 
objective in seeking this advice is to increase participation 
of private industry in the demonstration of near commercial 
applications through cooperative research and development 
arrangements, joint ventures or other appropriate arrangements 
involving the private sector.
    [(b) Information.--The Secretary, in carrying out the 
program authorized by subsection (a), shall--
          [(1) Undertake an inventory and assessment of 
        hydrogen technologies and their commercial capability 
        to economically produce, store, or utilize hydrogen in 
        aerospace, transportation, electric utilities, 
        petrochemical, chemical, merchant hydrogen, and other 
        industrial sectors; and
          [(2) develop a National Aeronautics Space 
        Administration, Department of Energy, and industry 
        information exchange program to improve technology 
        transfer for--
                  [(A) application of aerospace experience by 
                industry;
                  [B) application of research progress by 
                industry and aerospace;
                  [(C) application of commercial capability of 
                industry by aerospace; and
                  [(D) expression of industrial needs to 
                research organizations.
[The information exchange program may consist of workshops, 
publications, conferences, and a data base for the use by the 
public and private sectors.

[SEC. 107. COORDINATION AND CONSULTATION.

    [(a) Secretary's Responsibility.--The Secretary shall have 
overall management responsibility for carrying out programs 
under this Act. In carrying out such programs, the Secretary, 
consistent with such overall management responsibility--
          [(1) shall use the expertise of the National 
        Aeronautics and Space Administration and the Department 
        of Transportation; and
          [(2) may use the expertise of any other Federal 
        agency in accordance with subsection (b) in carrying 
        out any activities under this title, to the extent that 
        the Secretary determines that any such agency has 
        capabilities which would allow such agency to 
        contribute to the purpose of this Act.
    [(b) Assistance.--The Secretary may, in accordance with 
subsection (a), obtain the assistance of any department, 
agency, or instrumentality of the Executive branch of the 
Federal Government upon written request, on a reimbursable 
basis or otherwise and with the consent of such department, 
agency, or instrumentality. Each such request shall identify 
the assistance the Secretary deems necessary to carry out any 
duty under this Act.
    [(c) Consultation.--The Secretary shall consult with the 
Administrator of the National Aeronautics and Space 
Administration, the Administrator of the Environmental 
Protection Agency, the Secretary of Transportation, and the 
Hydrogen Technical Advisory Panel established under section 108 
in carrying out his authorities pursuant to this Act.

[SEC. 108. TECHNICAL PANEL.

    [(a) Establishment.--There is hereby established the 
Hydrogen Technical Advisory Panel (the ``technical panel''), to 
advise the Secretary on the programs under this Act.
    [(b) Membership.--The technical panel shall be appointed by 
the Secretary and shall be comprised of such representatives 
from domestic industry, universities, professional societies, 
Government laboratories, financial, environmental, and other 
organizations as the Secretary deems appropriate based on his 
assessment of the technical and other qualifications of such 
representatives. Appointments to the technical panel shall be 
made within 90 days after the enactment of this Act. The 
technical panel shall have a chairman, who shall be elected by 
the members from among their number.
    [(c) Cooperation.--The heads of the departments, agencies, 
and instrumentalities of the Executive branch of the Federal 
Government shall cooperate with the technical panel in carrying 
out the requirements of this section and shall furnish to the 
technical panel such information as the technical panel deems 
necessary to carry out this section.
    [(d) Review.--The technical panel shall review and make any 
necessary recommendations to the Secretary on the following 
items--
          [(1) the implementation and conduct of programs under 
        this Act;
          [(2) the economic, technological, and environmental 
        consequences of the deployment of hydrogen production 
        and use systems; and
          [(3) comments on and recommendations for improvements 
        in the comprehensive 5-year program management plan 
        required under section 103.
    [(e) Support.--The Secretary shall provide such staff, 
funds and other support as may be necessary to enable the 
technical panel to carry out the functions described in this 
section

[SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    [There is hereby authorized to be appropriated to carry out 
the purposes of this Act (in addition to any amounts made 
available for such purposes to other Acts)--
          [(1) $3,000,000 for the fiscal year 1992;
          [(2) $7,000,000 for the fiscal year 1993; and
          [(3) $10,000,000 for the fiscal year 1994.]

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act 
of 1990''.
    (b) Table of Contents.--The table of contents of this Act 
is as follows:
Sec. 1. Short title; table of contents.
Sec. 2. Purposes.
Sec. 3. Definitions.

                    TITLE I--HYDROGEN AND FUEL CELLS

Sec. 101. Hydrogen and fuel cell technology research and development.
Sec. 102. Task Force.
Sec. 103. Technology transfer.
Sec. 104. Authorization of appropriations.

             TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

Sec. 201. Hydrogen Supply and Fuel Cell Demonstration Program.
Sec. 202. Authorization of appropriations.

                    TITLE III--REGULATORY MANAGEMENT

Sec. 301. Codes and standards.
Sec. 302. Disclosure.
Sec. 303. Authorization of appropriations.

                            TITLE IV--REPORTS

Sec. 401. Deployment of hydrogen technology.
Sec. 402. Authorization of appropriations.

                    TITLE V--TERMINATION OF AUTHORITY

Sec. 501. Termination of authority.

SEC. 2. PURPOSES.

    The purposes of this Act 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. 3. DEFINITIONS.

    In this Act:
          (1) Department.--The term ``Department'' means the 
        Department of Energy.
          (2) 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.
          (3) 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.
          (4) Infrastructure.--The term ``infrastructure'' 
        means the equipment, systems, or facilities used to 
        produce, distribute, deliver, or store hydrogen (except 
        for onboard storage).
          (5) Light-duty vehicle.--The term ``light-duty 
        vehicle'' means a motor vehicle that is rated at 8,500 
        or less pounds gross vehicle weight.
          (6) Secretary.--The term ``Secretary'' means the 
        Secretary of Energy.
          (7) 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.
          (8) Task force.--The term ``Task Force'' means the 
        Hydrogen and Fuel Cell Technical Task Force established 
        under section 102(a).
          (9) Technical advisory committee.--The term 
        ``Technical Advisory Committee'' means the independent 
        Technical Advisory Committee of the Task Force selected 
        under section 102(d).

                    TITLE I--HYDROGEN AND FUEL CELLS

SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RESEARCH AND DEVELOPMENT.

    (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, and other problems that emerge from research 
        and development;
          (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) Cost Sharing.--The costs of carrying out projects and 
activities under this section shall be shared in accordance 
with section 1002 of the Energy Policy Act of 2005.

SEC. 102. TASK FORCE.

    (a) Establishment.--The Secretary, in consultation with the 
Director of the Office of Science and Technology Policy, shall 
establish an interagency Task Force, to be known as the 
``Hydrogen and Fuel Cell Technical Task Force'' to advise the 
Secretary in carrying out programs under this Act.
    (b) Membership.--
          (1) In general.--Task Force shall be comprised of 
        such representatives of the Office of Science and 
        Technology Policy, the Environmental Protection Agency, 
        the Department of Transportation, the Department of 
        Defense, the National Aeronautics and Space 
        Administration, and such other members, as the 
        Secretary, in consultation with the Director of the 
        Office of Science and Technology Policy, determines to 
        be appropriate.
          (2) Voting.--A member of the Task Force that does not 
        represent a Federal agency shall serve on the Task 
        Force only in a nonvoting, advisory capacity.
    (c) Duties.--The Task Force shall review and make any 
necessary recommendations to the Secretary on implementation 
and conduct of programs under this Act.
    (d) Technical Advisory Committee.--
          (1) In general.--The Secretary shall select such 
        number of members as the Secretary considers to be 
        appropriate to form an independent, nonpolitical 
        Technical Advisory Committee.
          (2) Membership.--Each member of the Technical 
        Advisory Committee shall have scientific, technical, or 
        industrial expertise, as determined by the Secretary.
          (3) Duties.--The Technical Advisory Committee shall 
        provide technical advice and assistance to the Task 
        Force and the Secretary.

SEC. 103. TECHNOLOGY TRANSFER.

    In carrying out this Act, 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. 104. AUTHORIZATION OF APPROPRIATIONS.

    (a) 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 title--
          (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 2015.
    (b) Fuel Cell Technologies.--There are authorized to be 
appropriated to carry out projects and activities relating to 
fuel cell technologies under this title--
          (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 2015.

             TITLE II--HYDROGEN AND FUEL CELL DEMONSTRATION

SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEMONSTRATION PROGRAM.

    (a) In General.--The Secretary, in consultation with the 
Task Force and the Technical Advisory Committee, shall 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--
          (1) light-duty vehicles;
          (2) heavy-duty vehicles;
          (3) fleet vehicles;
          (4) specialty industrial and farm vehicles; and
          (5) commercial and residential portable, continuous, 
        and backup electric power generation.
    (b) Other Demonstration Programs.--To develop widespread 
hydrogen supply and use options, and assist evolution of 
technology, the Secretary shall--
          (1) 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;
          (2) 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
          (3) 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.
    (c) 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 732 of the 
                Energy Policy Act of 2005 that--
                          (i) have as a primary goal the 
                        reduction of drive energy requirements;
                          (ii) after 2010, add another research 
                        and development phase to 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.
          (2) Cost sharing.--The costs of carrying out a 
        project or activity under this subsection shall be 
        shared in accordance with [section 1002 of the Energy 
        Policy Act of 2005].
    (d) Identification of New Research and Development 
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 
        research and development requirements that refine 
        technological concepts, planning, and applications; and
          (2) during the second phase of the learning 
        demonstrations under subsection (c)(1)(A)(ii) redesign 
        subsequent research and development to incorporate 
        those requirements.

SEC. 202. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
title--
          (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 2015.

                    TITLE III--REGULATORY MANAGEMENT

SEC. 301. 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.

SEC. 302. 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 Act.

SEC. 303. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out this 
title--
          (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 and 2012.

                           TITLE IV--REPORTS

SEC. 401. DEPLOYMENT OF HYDROGEN TECHNOLOGY.

    (a) Secretary.--Subject to subsection (c), not later than 2 
years after the date of enactment of the Hydrogen and Fuel Cell 
Technology Act of 2005, and triennially thereafter, the 
Secretary shall submit to Congress a report describing--
          (1) any activity carried out by the Department of 
        Energy under this Act, including a research, 
        development, demonstration, and commercial application 
        program 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 a research, development, or 
        deployment strategy of the Secretary relating to 
        hydrogen and fuel cell technology to reflect the 
        results of a learning demonstration under title II;
          (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 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 can be achieved 
        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 Act;
          (7) progress made toward and goals achieved in 
        carrying out this Act 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) National Academy of Science.--
          (1) In general.--The Secretary shall enter into an 
        arrangement with the National Academy of Sciences to 
        conduct and submit to the Secretary, not later than 
        September 30, 2007, and triennially thereafter--
                  (A) the results of a review of the projects 
                and activities carried out under this Act;
                  (B) recommendations for any new authorities 
                or resources needed to achieve strategic goals; 
                and
                  (C) recommendations for approaches by which 
                the Secretary could achieve a substantial 
                decrease in the dependence on and consumption 
                of natural gas and imported oil by the Federal 
                Government, including by increasing the use of 
                fuel cell vehicles, stationary and portable 
                fuel cells, and hydrogen energy systems.
          (2) Reauthorization.--The Secretary shall use the 
        results of reviews conducted under paragraph (1) in 
        proposing to Congress any legislative changes relating 
        to reauthorization of this Act.

SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    There is authorized to be appropriated to carry out this 
title $1,500,000 for each of fiscal years 2006 through 2010.

                   TITLE V--TERMINATION OF AUTHORITY

SEC. 501. TERMINATION OF AUTHORITY.

    This Act and the authority provided by this Act terminate 
on September 30, 2015.

 METHANE HYDRATE RESEARCH AND DEVELOPMENT ACT OF 2000--PUBLIC LAW 106-
193 (30 U.S.C. 1902 NOTE)

           *       *       *       *       *       *       *

    [Section 1. Short title.
    This Act may be cited as the ``Methane Hydrate Research and 
Development Act of 2000''.
    Sec. 2. 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, within the meaning of 
        section 102(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1002(a)).
          [(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 and the Director of the 
        Minerals Management Service.
    [Sec. 3. Methane hydrate research and development program.
    [(a) In General.--
          [(1) Commencement of program.--Not later than 180 
        days after the date of he enactment of this Act, 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 270 days after 
        the date of the enactment of this Act and not less 
        frequently than every 120 days thereafter to--
                  [(A) review the progress of the program under 
                paragraph (1); and
                  [(B) make recommendations on future 
                activities to occur subsequent to the meeting.
    [(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 or contracts to, or enter into cooperative 
        agreements with, institutions of higher education and 
        industrial enterprises to--
                  [(A) conduct basic and applied research to 
                identify, explore, assess, and develop methane 
                hydrate as a source of energy;
                  [(B) assist in developing technologies 
                required for efficient and environmentally 
                sound development of methane hydrate resources;
                  [(C) undertake research programs to provide 
                safe means of transport and storage of methane 
                produced from methane hydrates;
                  [(D) promote education and training in 
                methane hydrate resource research and resource 
                development;
                  [(E) conduct basic and applied research to 
                assess and mitigate the environmental impacts 
                of hydrate degassing (including both natural 
                degassing and degassing associated with 
                commercial development);
                  [(F) develop technologies to reduce the risks 
                of drilling through methane hydrates; and
                  [(G) conduct exploratory drilling in support 
                of the activities authorized by this paragraph.
          [(2) Competitive merit-based review.--Funds made 
        available under paragraph (1) shall be made available 
        based on a competitive merit-based process.
    [(c) Consultation.--The Secretary shall establish an 
advisory panel consisting of experts from industrial 
enterprises, institutions of higher education, and Federal 
agencies to--
          [(1) advise the Secretary on potential applications 
        of methane hydrate;
          [(2) assist in developing recommendations and 
        priorities for the methane hydrate research and 
        development program carried out under subsection 
        (a)(1); and
          [(3) not later than 2 years after the date of the 
        enactment of this Act, and at such later dates as the 
        panel considers advisable, submit to Congress a report 
        on the anticipated impact on global climate change 
        from--
                  [(A) methane hydrate formation;
                  [(B) methane hydrate degassing (including 
                natural degassing and degassing associated with 
                commercial development); and
                  [(C) the consumption of natural gas produced 
                from methane hydrates.
Not more than 25 percent of the individuals serving on the 
advisory panel shall be Federal employees.
    [(d) Limitations.--
          [(1) Administrative expenses.--Not more than 5 
        percent of the amount made available to carry out this 
        section for a fiscal year may be used by the Secretary 
        for expenses associated with the administration of the 
        program carried out under subsection (a)(1).
          [(2) 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; and
          [(5) report annually to Congress on accomplishments 
        under this section.
    [Sec. 4. [Omitted--This section amended 30 USCS Sec. 1901.]
    [Sec. 5. Authorization of appropriations.
    [There are authorized to be appropriated to the Secretary 
of Energy to carry out this Act--
          [(1) $5,000,000 for fiscal year 2001;
          [(2) $7,500,000 for fiscal year 2002;
          [(3) $11,000,000 for fiscal year 2003;
          [(4) $12,000,000 for fiscal year 2004; and
          [(5) $12,000,000 for fiscal year 2005.
    [Amounts authorized under this section shall remain 
available until expended.
    [Sec. 6. Sunset.
    Section 3 of this Act shall cease to be effective after the 
end of fiscal year 2005.
    [Sec. 7. National Research Council study.
    [The Secretary shall enter into an agreement with the 
National Research Council for such council to conduct a study 
of the progress made under the methane hydrate research and 
development program implemented pursuant to this Act, and to 
make recommendations for future methane hydrate research and 
development needs. The Secretary shall transmit to the 
Congress, not later than September 30, 2004, a report 
containing the findings and recommendations of the National 
Research Council under this section.
    [Sec. 8. Reports and studies.
    [The Secretary of Energy shall provide to the Committee on 
Science of the House of Representatives copies of any report or 
study that the Department of Energy prepares at the direction 
of any committee of the Congress.]

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 Science 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) $50,000,000 for fiscal year 2009; and
          (5) $50,000,000 for fiscal year 2010.
                              ----------                              

HIGH-PERFORMANCE COMPUTING ACT OF 1991--PUBLIC LAW 102-194, AS AMENDED 
                        (15 U.S.C. 5501 ET SEQ.)

SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

    (a) General Responsibilities.--As part of the Program 
described in [subchapter] title I [of this chapter], the 
Secretary of Energy shall--
          [(1) perform research and development on, and systems 
        evaluations of, high-performance computing and 
        communications systems;
          [(2) conduct computational research with emphasis on 
        energy applications;
          [(3) support basic research, education, and human 
        resources in computational science; and
          [(4) provide for networking infrastructure support 
        for energy-related mission activities.]
          (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.
                              ----------                              

COAL RESEARCH AND DEVELOPMENT ACT OF 1960--PUBLIC LAW 86-599 (30 U.S.C. 
661 ET SEQ.)

           *       *       *       *       *       *       *

[Section 1. Definitions

    [As used in this chapter (a) The term ``Secretary'' means 
the Secretary of the Interior. (b) The term ``research'' means 
scientific, technical, and economic research and the practical 
application of that research.]
    Section 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.

Section 2. Office of Coal Research; powers and duties

    The Secretary [shall establish within the Department of the 
Interior an Office of Coal Research, and through such Office] 
shall (1) develop through research, new and more efficient 
methods of mining, preparing, and utilizing coal; (2) contract 
for, sponsor, cosponsor, and promote the coordination of, 
research with recognized interested groups, including but not 
limited to, coal trade associations, coal research 
associations, educational institutions, and agencies of States 
and political subdivisions of States; (3) establish technical 
advisory committees composed of recognized experts in various 
aspects of coal research to assist in the examination and 
evaluation of research progress and of all research proposals 
and contracts and to insure the avoidance of duplication of 
research; and (4) cooperate to the fullest extent possible with 
other departments, agencies, and independent establishments of 
the Federal Government and with State governments, and with all 
other interested agencies, governmental and nongovernmental.

[Section 3. Advisory committees

    [(a) Minutes of meetings. Any advisory committee appointed 
under the provisions of this chapter shall keep minutes of each 
meeting, which shall contain as a minimum (1) the name of each 
person attending such meeting, (2) a copy of the agenda, and 
(3) a record of all votes or polls taken during the meeting.
    [(b) Availability of minutes or reports. A copy of any such 
minutes or of any report made by any such committee after final 
action has been taken thereon by the Secretary shall be 
available to the public upon request and payment of the cost of 
furnishing such copy.
    [(c) Compensation; travel expenses. Members of any advisory 
committee appointed from private life under authority of this 
section shall each receive $50 per diem when engaged in the 
actual performance of their duties as a member of such advisory 
committee. Such members shall also be entitled to travel 
expenses and per diem in lieu of subsistence at the rates 
authorized by section 5703 of title 5 for all persons employed 
intermittently as consultants or experts receiving compensation 
on a per diem basis.
    (d) Exemption from conflict-of-interest statutes. Service 
by an individual as a member of such an advisory committee 
shall not subject him to the provisions of section 1914 of 
title 18, or, except with respect to a particular matter which 
directly involves the Office of Coal Research or in which the 
Office of Coal Research is directly interested, to the 
provisions of sections 281, 283, or 284 of title 18 or of 
section 190 of the Revised Statutes (5 U.S.C. 99).

[Section 4. Director of Coal Research; appointment.

    [The Secretary may appoint a Director of Coal Research 
without regard to the provisions of the civil service laws, or 
chapter 51 and subchapter III of chapter 53 of title 5.]

           *       *       *       *       *       *       *

Section [5] 3. Sites for conducting research; availability of personnel 
        and facilities

           *       *       *       *       *       *       *

Section [6] 4. Public-availability requirement; national defense; 
        patent agreements

           *       *       *       *       *       *       *

Section [8] 5. Authorization of appropriations

           *       *       *       *       *       *       *

[Section 7. Reports to President and Congress

    [The Secretary shall submit to the President and the 
Congress, on or before February 15 of each year, beginning with 
the year 1961, a comprehensive report concerning activities 
under the authority of this chapter, including information on 
all research projects conducted, sponsored, or cosponsored 
under the authority of this chapter during the preceding year.]
                              ----------                              

TITLE 35, UNITED STATES CODE--PUBLIC LAW 96-517

           *       *       *       *       *       *       *

    Sec. 210. Precedence of chapter.
    (a) This chapter shall take precedence over any other Act 
which would require a disposition of rights in subject 
inventions of small business firms or nonprofit organizations 
contractors in a manner that is inconsistent with this chapter, 
including but not necessarily limited to the following:

           *       *       *       *       *       *       *

    (8) section 6 of the [Coal Research Development Act of 
1960] Coal Research and Development Act (30 U.S.C. 666; 74 
Stat. 337);
                              ----------                              

FEDERAL NONNUCLEAR ENERGY RESEARCH AND DEVELOPMENT ACT OF 1974--PUBLIC 
LAW 93-577 (42 U.S.C. 5902 ET SEQ.)

           *       *       *       *       *       *       *

                      SHORT TITLE AND DEFINITIONS

    Section 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; and
          (2) the term ``Secretary'' means the Secretary of 
        Energy.

                         STATEMENT OF FINDINGS

    Sec. 2. The Congress hereby finds that--
    (a) The Nation is suffering from a shortage of 
environmentally acceptable forms of energy.
    (b) Compounding this energy shortage is our past and 
present failure to formulate a comprehensive and aggressive 
research and development program designed to make available to 
American consumers our large domestic energy reserves including 
fossil fuels, nuclear fuels, geothermal resources, solar 
energy, and other forms of energy. This failure is partially 
because the unconventional energy technologies have not been 
judged to be economically competitive with traditional energy 
technologies.
    (c) The urgency of the Nation's energy challenge will 
require commitments similar to those undertaken in the 
Manhattan and Apollo projects; it will require that the Nation 
undertake a research, development, and demonstration program in 
nonnuclear energy technologies with a total Federal investment 
which may reach or exceed $20,000,000,000 over the next decade.
    (d) In undertaking such program, full advantage must be 
taken of the existing technical and managerial expertise in the 
various energy fields within Federal agencies and particularly 
in the private sector.
    (e) The Nation's future energy needs can be met if a 
national commitment is made now to dedicate the necessary 
financial resources, to enlist our scientific and technological 
capabilities, and to accord the proper priority to developing 
new nonnuclear energy options to serve national needs, conserve 
vital resources, and protect the environment.

                          STATEMENT OF POLICY

    Sec. 3. (a) It is the policy of the Congress to develop on 
an urgent basis the technological capabilities to support the 
broadest range of energy policy options through conservation 
and use of domestic resources by socially and environmentally 
acceptable means.
    (b)(1) The Congress declares the purpose of this Act to be 
to establish and vigorously conduct a comprehensive, national 
program of basic and applied research and development, 
including but not limited to demonstrations of practical 
applications, of all potentially beneficial energy sources and 
utilization technologies, within the [Energy Research and 
Development Administration] Department.
    (2) In carrying out this program, the [Administrator of the 
Energy Research and Development Administration (hereinafter in 
this Act referred to as the ``Administrator'')] Secretary shall 
be governed by the terms of this Act and other applicable 
provisions of law with respect to all nonnuclear aspects of the 
research, development, and demonstration program; and the 
policies and provisions of the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.), and other provisions of law shall 
continue to apply to the nuclear research, development, and 
demonstration program.
    (3) In implementing and conducting the research, 
development, and demonstration programs pursuant to this Act, 
the [Administrator] Secretary shall incorporate programs in 
specific nonnuclear technologies previously enacted into law, 
including those established by the Solar Heating and Cooling 
Demonstration Act of 1974 (Public Law 93-409), the Geothermal 
Energy Research, Development, and Demonstration Act of 1974 
(Public Law 93-410), and the Solar Energy Research, 
Development, and Demonstration Act of 1974 (Public Law 93-473).

        DUTIES AND AUTHORITIES OF THE [ADMINISTRATOR] SECRETARY

    Sec. 4. The [Administrator] Secretary shall--(a) review the 
current status of nonnuclear energy resources and current 
nonnuclear energy research and development activities, 
including research and development being conducted by Federal 
and non-Federal entities;
    (b) formulate and carry out a comprehensive Federal 
nonnuclear energy research, development, and demonstration 
program which will expeditiously advance the policies 
established by this Act and other relevant legislation 
establishing programs in specific energy technologies;
    (c) utilize the funds authorized pursuant to this Act to 
advance energy research and development by initiating and 
maintaining, through fund transfers, grants or contracts, 
energy research, development and demonstration programs or 
activities utilizing the facilities, capabilities, expertise, 
and experience of Federal agencies, national laboratories, 
universities, nonprofit organizations, industrial entities, and 
other non-Federal entities which are appropriate to each type 
of research, development, and demonstration activity;
    (d) establish procedures for periodic consultation with 
representatives of science, industry, environmental 
organizations, consumers, and other groups who have special 
expertise in the areas of energy research, development, and 
technology; and
    (e) initiate programs to design, construct, and operate 
energy facilities of sufficient size to demonstrate the 
technical and economic feasibility of utilizing various forms 
of nonnuclear energy.

GOVERNING PRINCIPLES

           *       *       *       *       *       *       *

    Sec. 5. * * *
    (b) The Congress further directs that the execution of the 
comprehensive research, development, and demonstration program 
shall conform to the following principles:
          (1) Research and development of nonnuclear energy 
        sources shall be pursued in such a way as to facilitate 
        the commercial availability of adequate supplies of 
        energy to all regions of the United States.
          (2) In determining the appropriateness of Federal 
        involvement in any particular research and development 
        undertaking, the [Administrator] Secretary shall give 
        consideration to the extent to which the proposed 
        undertaking satisfies criteria including, but not 
        limited to, the following:

           *       *       *       *       *       *       *

COMPREHENSIVE PLANNING AND PROGRAMMING

           *       *       *       *       *       *       *

    Sec. 6.
    (b) * * *

           *       *       *       *       *       *       *

    (3) The [Administrator] Secretary shall assign program 
elements and activities in specific nonnuclear energy 
technologies to the short-term, middle-term, and long-term time 
intervals, and shall present full and complete justification 
for these assignments and the degree of emphasis for each. 
These program elements and activities shall include, but not be 
limited to, research, development, and demonstrations 
designed--
          (A) to advance energy conservation technologies, 
        including but not limited to--
                  (i) productive use of waste, including 
                garbage, sewage, agricultural wastes, and 
                industrial waste heat;
                  (ii) reuse and recycling of materials and 
                consumer products;
                  (iii) improvements in automobile design for 
                increased efficiency and lowered emissions, 
                including investigation of the full range of 
                alternatives to the internal combustion engine 
                and systems of efficient public transportation; 
                and
                  (iv) advanced urban and architectural design 
                to promote efficient energy use in the 
                residential and commercial sectors, 
                improvements in home design and insulation 
                technologies, small thermal storage units and 
                increased efficiency in electrical appliances 
                and lighting fixtures;
          (B) to accelerate the commercial demonstration of 
        technologies for producing low-sulfur fuels suitable 
        for boiler use;
          (C) to demonstrate improved methods for the 
        generation, storage, and transmission of electrical 
        energy through
                  (i) advances in gas turbine technologies, 
                combined power cycles, the use of low British 
                thermal unit gas and, if practicable, 
                magnetohydrodynamics;
                  (ii) storage systems to allow more efficient 
                load following, including the use of inertial 
                energy storage systems; and
                  (iii) improvement in cryogenic transmission 
                methods;
          (D) to accelerate the commercial demonstration of 
        technologies for producing substitutes for natural gas, 
        including coal gasification: Provided, That the 
        [Administrator] Secretary shall invite and consider 
        proposals from potential participants based upon 
        Federal assistance and participation in the form of a 
        joint Federal-industry corporation, and recommendations 
        pursuant to this clause shall be accompanied by a 
        report on the viability of using this form of Federal 
        assistance or participation;
          (E) to accelerate the commercial demonstration of 
        technologies for producing syncrude and liquid 
        petroleum products from coal: Provided, That the 
        [Administrator] Secretary shall invite and consider 
        proposals from potential participants based upon 
        Federal assistance and participation through guaranteed 
        prices or purchase of the products, and recommendations 
        pursuant to this clause shall be accompanied by a 
        report on the viability of using this form of Federal 
        assistance or participation;
          (F) in accordance with the program authorized by the 
        Geothermal Energy Research, Development, and 
        Demonstration Act of 1974 (Public Law 93-410), to 
        accelerate the commercial demonstration of geothermal 
        energy technologies;
          (G) to demonstrate the production of syncrude from 
        oil shale by all promising technologies including 
        insitu technologies;
          (H) to demonstrate new and improved methods for the 
        extraction of petroleum resources, including secondary 
        and tertiary recovery of crude oil;
          (I) to demonstrate the economics and commercial 
        viability of solar energy for residential and 
        commercial energy supply applications in accordance 
        with the program authorized by the Solar Heating and 
        Cooling Demonstration Act of 1974 (Public Law 93-409);
          (J) to accelerate the commercial demonstration of 
        environmental control systems for energy technologies 
        developed pursuant to this Act;
          (K) to investigate the technical and economic 
        feasibility of tidal power for supplying electrical 
        energy;
          (L) to commercially demonstrate advanced solar energy 
        technologies in accordance with the Solar Energy 
        Research, Development, and Demonstration Act of 1974 
        (Public Law 93-473);
          (M) to determine the economics and commercial 
        viability of the production of synthetic fuels such as 
        hydrogen and methanol;
          (N) to commercially demonstrate the use of fuel cells 
        for central station electric power generation;
          (O) to determine the economics and commercial 
        viability of in situ coal gasification;
          (P) to improve techniques for the management of 
        existing energy systems by means of quality control; 
        application of systems analysis, communications, and 
        computer techniques; and public information with the 
        objective of improving the reliability and efficiency 
        of energy supplies and encourage the conservation of 
        energy resources;
          (Q) to improve methods for the prevention and cleanup 
        of marine oil spills;
          (R) to implement the Renewable Energy and Energy 
        Efficiency Technology Competitiveness Act of 1989 (42 
        U.S.C. 12001 et seq.); and
          (S) to implement titles XX through XXIII of the 
        Energy Policy Act of 1992.
    (c) Based upon the comprehensive plan developed under 
subsection (a), the Secretary, in consultation with the 
Advisory Board established under section 2302 of the Energy 
Policy Act of 1992, shall develop and transmit to the Congress, 
on or before September 1, 1978, a comprehensive environment and 
safety program to insure the full consideration and evaluation 
of all environmental, health, and safety impacts of each 
element, program, or initiative contained in the nuclear and 
nonnuclear energy research, development, and demonstration 
plans. Such program shall be updated and transmitted to the 
Congress annually as part of the report required under section 
1.

                      FORMS OF FEDERAL ASSISTANCE

    Sec. 7. (a) In carrying out the objectives of this Act, the 
[Administrator] Secretary may utilize various forms of Federal 
assistance and participation which may include but are not 
limited to--
          (1) joint Federal-industry experimental, 
        demonstration, or commercial corporations consistent 
        with the provisions of subsection (b) of this section;
          (2) contractual arrangements with non-Federal 
        participants including corporations, consortia, 
        universities, governmental entities and nonprofit 
        institutions;
          (3) contracts for the construction and operation of 
        federally owned facilities;
          (4) Federal purchases or guaranteed price of the 
        products of demonstration plants or activities 
        consistent with the provisions of subsection (c) [of 
        the section];
          (5) Federal loans to non-Federal entities conducting 
        demonstrations of new technologies;
          (6) incentives, including financial awards, to 
        individual inventors, such incentives to be designed to 
        encourage the participation of a large number of such 
        inventors; and
          (7) Federal loan guarantees and commitments thereof 
        as provided insection 19.
    (b) Joint Federal-industry corporations proposed for 
congressional authorization pursuant to this Act shall be 
subject to the provisions of section 9 of this Act and shall 
conform to the following guidelines except as otherwise 
authorized by Congress:
          (1) Each such corporation may design, construct, 
        operate, and maintain one or more experimental, 
        demonstration, or commercial-size facilities, or other 
        operations which will ascertain the technical, 
        environmental, and economic feasibility of a particular 
        energy technology. In carrying out this function, the 
        corporation shall be empowered, either directly or by 
        contract, to utilize commercially available 
        technologies, perform tests, or design, construct, and 
        operate pilot plants, as may be necessary for the 
        design of the full-scale facility.
          (2) Each corporation shall have--
                  (A) a Board of nine directors consisting of 
                individuals who are citizens of the United 
                States, of whom one shall be elected annually 
                by the Board to serve as Chairman. The Board 
                shall be empowered to adopt and amend bylaws. 
                Five members of the Board shall be appointed by 
                the President of the United States, by and with 
                the advice and consent of the Senate, and four 
                members of the Board shall be appointed by the 
                President on the basis of recommendations 
                received by him from any non-Federal entity or 
                entities entering into contractual arrangements 
                to participate in the corporation;
                  (B) a President and such other officers and 
                employees as may be named and appointed by the 
                Board (with the rates of compensation of all 
                officers and employees being fixed by the 
                Board); and
                  (C) the usual powers conferred upon 
                corporations by the laws of the District of 
                Columbia.
          (3) An appropriate time interval, not to exceed 12 
        years, shall be established for the term of Federal 
        participation in the corporation, at the expiration of 
        which the Board of Directors shall take such action as 
        may be necessary to dissolve the corporation or 
        otherwise terminate Federal participation and financial 
        interests. In carrying out such dissolution, the Board 
        of Directors shall dispose of all physical facilities 
        of the corporation in such manner and subject to such 
        terms and conditions as the Board determines are in the 
        public interest and consistent with existing law; and a 
        share of the appraised value of the corporate asset 
        proportional to the Federal participation in the 
        corporation, including the proceeds from the 
        disposition of such facilities, on the date of its 
        dissolution, after satisfaction of all its legal 
        obligations, shall be made available to the United 
        States and deposited in the Treasury of the United 
        States as miscellaneous receipts. All patent rights of 
        the corporation shall, on such date of dissolution, be 
        vested in the [Administrator] Secretary: Provided, That 
        Federal participation may be terminated prior to the 
        time established in the authorizing Act upon 
        recommendation of the Board of Directors.
          (4) Any commercially valuable product produced by 
        demonstration facilities shall be disposed of in such 
        manner and under such terms and conditions as the 
        corporation shall prescribe. All revenues received by 
        the corporation from the sale of such products shall be 
        available to the corporation for use by it in defraying 
        expenses incurred in connection with carrying out its 
        functions to which this Act applies.
          (5) The estimated Federal share of the construction, 
        operation, and maintenance cost over the life of each 
        corporation shall be determined in order to facilitate 
        a single congressional authorization of the full amount 
        at the time of establishment of the corporation.
          (6) The Federal share of the cost of each such 
        corporation shall reflect:
                  (A) the technical and economic risk of the 
                venture,
                  (B) the probability of any financial return 
                to the non-Federal participants arising from 
                the venture,
                  (C) the financial capability of the potential 
                non-Federal participants, and
                  (D) such other factors as the [Administrator] 
                Secretary may set forth in proposing the 
                corporation: Provided, That in no instance 
                shall the Federal share exceed 90 per centum of 
                the cost.
          (7) No such corporation shall be established unless 
        previously authorized by specific legislation enacted 
        by the Congress.
    (c) Competitive systems of price supports proposed for 
congressional authorization pursuant to this Act shall conform 
to the following guidelines:
          (1) The [Administrator] Secretary shall determine the 
        types and capacities of the desired full-scale, 
        commercial-size facility or other operation which would 
        demonstrate the technical, environmental, and economic 
        feasibility of a particular nonnuclear energy 
        technology.
          (2) The [Administrator] Secretary may award planning 
        grants for the purpose of financing a study of the full 
        cycle economic and environmental costs associated with 
        the demonstration facility selected pursuant to 
        paragraph (1) of this subsection. Such planning grants 
        may be awarded to Federal and non-Federal entities 
        including, but not limited to, industrial entities, 
        universities, and nonprofit organizations. Such 
        planning grants may also be used by the grantee to 
        prepare a detailed and comprehensive bid to construct 
        the demonstration facility.
          (3) Following the completion of the studies pursuant 
        to the planning grants awarded under paragraph (2) of 
        this subsection regarding each such potential price 
        supported demonstration facility for which the 
        [Administrator] Secretary intends to request 
        congressional authorization, he shall invite bids from 
        all interested parties to determine the minimum amount 
        of Federal price support needed to construct the 
        demonstration facility. The [Administrator] Secretary 
        may designate one or more competing entities, each to 
        construct one commercial demonstration facility. Such 
        designation shall be made on the basis of those 
        entities'
                  (A) commitment to construct the demonstration 
                facility at the minimum level of Federal price 
                supports,
                  (B) detailed plan of environmental 
                protection, and
                  (C) proposed design and operation of the 
                demonstration facility.
          (4) The construction plans and actual construction of 
        the demonstration facility, together with all related 
        facilities, shall be monitored by the Environmental 
        Protection Agency. If additional environmental 
        requirements are imposed by the [Administrator] 
        Secretary after the designation of the successful 
        bidders and if such additional environmental 
        requirements result in additional costs, the 
        [Administrator] Secretary is authorized to renegotiate 
        the support price to cover such additional costs.
          (5) The estimated amount of the Federal price support 
        for a demonstration facility's product over the life of 
        such facility shall be determined by the 
        [Administrator] Secretary to facilitate a single 
        congressional authorization of the full amount of such 
        support at the time of the designation of the 
        successful bidders.
          (6) No price support program shall be implemented 
        unless previously authorized by specific legislation 
        enacted by the Congress.
  (d) Nothing in this section shall preclude Federal 
participation in and support for, joint university-industry 
nonnuclear energy research efforts.

                             DEMONSTRATIONS

    Sec. 8. (a) The [Administrator] Secretary is authorized 
to--
          (1) identify opportunities to accelerate the 
        commercial applications of new energy technologies, and 
        provide Federal assistance for or participation in 
        demonstration projects (including pilot plants 
        demonstrating technological advances and field 
        demonstrations of new methods and procedures, and 
        demonstrations of prototype commercial applications for 
        the exploration, development, production, 
        transportation, conversion, and utilization of energy 
        resources); and
          (2) enter into cooperative agreements with non-
        Federal entities to demonstrate the technical 
        feasibility and economic potential of energy 
        technologies on a prototype or full-scale basis.
  (b) In reviewing potential projects, the [Administrator] 
Secretary shall consider criteria including but not limited 
to--
          (1) the anticipated research, development, and 
        application objectives to be achieved by the activities 
        or facilities proposed;
          (2) the economic, environmental, and societal 
        significance which a successful demonstration may have 
        for the national fuels and energy system;
          (3) the relationship of the proposal to the criteria 
        of priority set forth in section 5(b)(2);
          (4) the availability of non-Federal participants to 
        construct and operate the facilities or perform the 
        activities associated with the proposal and to 
        contribute to the financing of the proposal;
          (5) the total estimated cost including the Federal 
        investment and the probable time schedule;
          (6) the proposed participants and the proposed 
        financial contributions of the Federal Government and 
        of the non-Federal participants; and
          (7) the proposed cooperative arrangement, agreements 
        among the participants, and form of management of the 
        activities.
  (c)(1) A financial award under this section may be made only 
to the extent of the Federal share of the estimated total 
design and construction costs, plus operation and maintenance 
costs.
    (2) For the purposes of this Act the non-Federal share may 
be in any form, including, but not limited to, lands or 
interests therein needed for the project or personal property 
or services, the value of which shall be determined by the 
[Administrator] Secretary.
  (d)(1) The Administrator of the Energy Research and 
Development Administration shall, within six months of 
enactment of this Act, promulgate regulations establishing 
procedures for submission of proposals to the Energy Research 
and Development Administration for the purposes of this Act. 
Such regulations shall establish a procedure for selection of 
proposals which--
          (A) provides that projects will be carried out under 
        such conditions and varying circumstances as will 
        assist in solving energy extraction, transportation, 
        conversion, conservation, and end-use problems of 
        various areas and regions, under representative 
        geological, geographic, and environmental conditions; 
        and
          (B) provides time schedules for submission of, and 
        action on, proposal requests for the purposes of 
        implementing the goals and objectives of this Act.
    (2) Such regulations also shall specify the types and form 
of the information, data, and support documentation that are to 
be contained in proposals for each form of Federal assistance 
or participation set forth in subsection 7(a): Provided, That 
such proposals to the extent possible shall include, but not be 
limited to--
          (A) specification of the technology;
          (B) description of prior pilot plant operating 
        experience with the technology;
          (C) preliminary design of the demonstration plant;
          (D) time tables containing proposed construction and 
        operation plans;
          (E) budget-type estimates of construction and 
        operating costs;
          (F) description and proof of title to land for 
        proposed site, natural resources, electricity and water 
        supply and logistical information related to access to 
        raw materials to construct and operate the plant and to 
        dispose of salable products produced from the plant;
          (G) analysis of the environmental impact of the 
        proposed plant and plans for disposal of wastes 
        resulting from the operation of the plant;
          (H) plans for commercial use of the technology if the 
        demonstration is successful;
          (I) plans for continued use of the plant if the 
        demonstration is successful; and
          (J) plans for dismantling of the plant if the 
        demonstration is unsuccessful or otherwise abandoned.
    (3) The [Administrator] Secretary shall from time to time 
review and, as appropriate, modify and repromulgate regulations 
issued pursuant to this section.
  (e) If the estimate of the Federal investment with respect to 
construction costs of any demonstration project proposed to be 
established under this section exceeds $50,000,000, no amount 
may be appropriated for such project except as specifically 
authorized by legislation hereafter enacted by the Congress.
  (f) If the total estimated amount of the Federal contribution 
to the construction cost of a demonstration project does not 
exceed $50,000,000, the [Administrator] Secretary is authorized 
to proceed with the negotiation of agreements and 
implementation of the proposal subject to the availability of 
funds under the authorization of appropriations pursuant to 
section 16: Provided, That if such Federal contribution to the 
construction cost is estimated to exceed $25,000,000 the 
[Administrator] Secretary shall provide a full and 
comprehensive report on the proposed demonstration project to 
the appropriate committees of the Congress and no funds may be 
expended for any agreement under the authority granted by this 
section prior to the expiration of sixty calendar days (not 
including any day on which either House of Congress is not in 
sessionbecause of an adjournment of more than three calendar 
days to a day certain) from the date on which the [Administrator's] 
Secretary's report on the proposed project is received by the Congress. 
Such reports shall contain an analysis of the extent to which the 
proposed demonstration satisfies the criteria specified in subsection 
(b) of this section.

                             PATENT POLICY

    Sec. 9. (a) Whenever any invention is made or conceived in 
the course of or under any contract of the [Administration] 
Department, other than nuclear energy research, development, 
and demonstration pursuant to the Atomic Energy Act of 1954 (42 
U.S.C. 2011 et seq.) and the [Administrator] Secretary 
determines that--
          (1) the person who made the invention was employed or 
        assigned to perform research, development, or 
        demonstration work and the invention is related to the 
        work he was employed or assigned to perform, or that it 
        was within the scope of his employment duties, whether 
        or not it was made during working hours, or with a 
        contribution by the Government of the use of Government 
        facilities, equipment, materials, allocated funds, 
        information proprietary to the Government, or services 
        of Government employees during working hours; or
          (2) the person who made the invention was not 
        employed or assigned to perform research, development, 
        or demonstration work, but the invention is 
        nevertheless related to the contract or to the work or 
        duties he was employed or assigned to perform, and was 
        made during working hours, or with a contribution from 
        the Government of the sort referred to in clause (1); 
        title to such invention shall vest in the United 
        States, and if patents on such invention are issued 
        they shall be issued to the United States, unless in 
        particular circumstances the [Administrator] Secretary 
        waives all or any part of the rights of the United 
        States to such invention in conformity with the 
        provisions of this section.
    (b) Each contract entered into by the [Administration] 
Department with any person shall contain effective provisions 
under which such person shall furnish promptly to the 
[Administration] Department a written report containing full 
and complete technical information concerning any invention, 
discovery, improvement, or innovation which may be made in the 
course of or under such contract.
    (c) Under such regulations in conformity with the 
provisions of this section as the [Administrator] Secretary 
shall prescribe, the [Administrator] Secretary may waive all or 
any part of the rights of the United States under this section 
with respect to any invention or class of inventions made or 
which may be made by any person or class of persons in the 
course of or under any contract of the [Administration] 
Department if he determines that the interests of the United 
States and the general public will best be served by such 
waiver. The [Administration] Department shall maintain a 
publicly available, periodically updated record of waiver 
determinations. In making such determinations, the 
[Administrator] Secretary shall have the following objectives:
          (1) Making the benefits of the energy research, 
        development, and demonstration program widely available 
        to the public in the shortest practicable time.
          (2) Promoting the commercial utilization of such 
        inventions.
          (3) Encouraging participation by private persons in 
        the [Administration's] Department's energy research, 
        development, and demonstration program.
          (4) Fostering competition and preventing undue market 
        concentration or the creation or maintenance of other 
        situations inconsistent with the antitrust laws.
    (d) In determining whether a waiver to the contractor at 
the time of contracting will best serve the interests of the 
United States and the general public, the [Administrator] 
Secretary shall specifically include as considerations--
          (1) the extent to which the participation of the 
        contractor will expedite the attainment of the purposes 
        of the program;
          (2) the extent to which a waiver of all or any part 
        of such rights in any or all fields of technology is 
        needed to secure the participation of the particular 
        contractor;
          (3) the extent to which the contractor's commercial 
        position may expedite utilization of the research, 
        development, and demonstration program results;
          (4) the extent to which the Government has 
        contributed to the field of technology to be funded 
        under the contract;
          (5) the purpose and nature of the contract, including 
        the intended use of the results developed thereunder;
          (6) the extent to which the contractor has made or 
        will make substantial investment of financial resources 
        or technology developed at the contractor's private 
        expense which will directly benefit the work to be 
        performed under the contract;
          (7) the extent to which the field of technology to be 
        funded under the contract has been developed at the 
        contractor's private expense;
          (8) the extent to which the Government intends to 
        further develop to the point of commercial utilization 
        the results of the contract effort;
          (9) the extent to which the contract objectives are 
        concerned with the public health, public safety, or 
        public welfare;
          (10) the likely effect of the waiver on competition 
        and market concentration; and
          (11) in the case of a nonprofit educational 
        institution, the extent to which such institution has a 
        technology transfer capability and program, approved by 
        the [Administrator] Secretary as being consistent with 
        the applicable policies of this section.
          (e) In determining whether a waiver to the contractor 
        or inventor of rights to an identified invention will 
        best serve the interests of the United States and the 
        general public, the [Administrator] Secretary shall 
        specifically include as considerations paragraphs (4) 
        through (11) of subsection (d) as applied to the 
        invention and--
            (1) the extent to which such waiver is a reasonable 
        and necessary incentive to call forth private risk 
        capital for the development and commercialization of 
        the invention; and
          (2) the extent to which the plans, intentions, and 
        ability of the contractor or inventor will obtain 
        expeditious commercialization of such invention.
            (f) Whenever title to an invention is vested in the 
        United States, there may be reserved to the contractor 
        or inventor--
            (1) a revocable or irrevocable nonexclusive, paid-
        up license for the practice of the invention throughout 
        the world; and
            (2) the rights to such invention in any foreign 
        country where the United States has elected not to 
        secure patent rights and the contractor elects to do 
        so, subject to the rights set forth in paragraphs (2), 
        (3), (6), and (7) of subsection (h): Provided, That 
        when specifically requested by the [Administration] 
        Department and three years after issuance of such a 
        patent, the contract shall submit the report specified 
        in subsection (h)(1) of this section.

           *       *       *       *       *       *       *

    (j) The [Administrator] Secretary shall, in granting 
waivers or licenses, consider the small business status of the 
applicant.
    (k) The [Administrator] Secretary is authorized to take all 
suitable and necessary steps to protect any invention or 
discovery to which the United States holds title, and to 
require that contractors or persons who acquire rights to 
inventions under this section protect such inventions.
    (l) The [Administration] Department shall be considered a 
defense agency of the United States for the purpose of chapter 
17 of title 35 of the United States Code. [2]
    (m) As used in this section--
          (1) the term ``person'' means any individual, 
        partnership, corporation, association, institution, or 
        other entity;
          (2) the term ``contract'' means any contract, grant, 
        agreement, understanding, or other arrangement, which 
        includes research, development, or demonstration work, 
        and includes any assignment, substitution of parties, 
        or subcontract executed or entered into thereunder;
          (3) the term ``made'', when used in relation to any 
        invention means the conception or first actual 
        reduction to practice of such invention;
          (4) the term ``invention'' means inventions or 
        discoveries, whether patented or unpatented; and
          (5) the term ``contractor'' means any person having a 
        contract with or on behalf of the [Administration] 
        Department.
            (n) Within twelve months after the date of the 
        enactment of this Act, the [Administrator] Secretary 
        with the participation of the Attorney General, the 
        Secretary of Commerce, and other officials as the 
        President may designate, shall submit to the President 
        and the appropriate congressional committees a report 
        concerning the applicability of existing patent 
        policies affecting the programs under this Act, along 
        with his recommendations for amendments or additions to 
        the statutory patent policy, including his 
        recommendations on mandatory licensing, which he deems 
        advisable for carrying out the purposes of this Act.

                     RELATIONSHIP TO ANTITRUST LAWS

    Sec. 10. (a) Nothing in this Act shall be deemed to convey 
to any individual, corporation, or other business organization 
immunity from civil or criminal liability, or to create 
defenses to actions, under the antitrust laws.
    (b) As used in this section, the term ``antitrust law'' 
means--
          (1) the Act entitled ``An Act to protect trade and 
        commerce against unlawful restraints and monopolies'', 
        approved July 2, 1890 (15 U.S.C. 1 et seq.), as 
        amended;
          (2) the Act entitled ``An Act to supplement existing 
        laws against unlawful restraints and monopolies, and 
        for other purposes'', approved October 15, 1914 (15 
        U.S.C. 12 et seq.) as amended;
          (3) the Federal Trade Commission Act (15 U.S.C. 41 et 
        seq.), as amended;
          (4) sections 73 and 74 of the Act entitled ``An Act 
        to reduce taxation, to provide revenue for the 
        Government, and for other purposes'', approved August 
        27, 1894 (15 U.S.C. 8 and 9), as amended; and
          (5) the Act of June 19, 1936, chapter 592 (15 U.S.C. 
        13, 13a, 13b, and 21a).

                   ACQUISITION OF ESSENTIAL MATERIALS

    Sec. 12. (a) The President may, by rule or order, require 
the allocation of, or the performance under contracts or orders 
(other than contracts of employment) relating to, supplies of 
materials and equipment if he finds that--
          (1) such supplies are scarce, critical, and essential 
        to carry out the purposes of this Act; and (2) such 
        supplies cannot reasonably be obtained without 
        exercising the authority granted by this section.
    [(b) The President shall transmit any rule or order 
proposed under subsection (a) of this section (bearing an 
identification number) to each House of Congress on the date on 
which it is proposed. If such proposed rule or order is 
transmitted to the Congress such proposed rule or order shall 
take effect at the end of the first period of thirty calendar 
days of continuous session of Congress after the date on which 
such proposed rule or order is transmitted to it unless, 
between the date of transmittal and the end of the thirty day 
period, either House passes a resolution stating in substance 
that such House does not favor such a proposed rule or order.]
    (b) A rule or order under subsection (a) shall be deemed to 
be a major rule subject to the requirements and procedures in 
chapter 8 of title 5, United States Code.

                       WATER RESOURCE EVALUATION

    Sec. 13. (a) The Water Resources Council shall undertake 
assessments of water resource requirements and water supply 
availability for any nonnuclear energy technology and any 
probable combinations of technologies which are the subject of 
Federal research and development efforts authorized by this 
Act, and the commercial development of which could have 
significant impacts on water resources. In the preparation of 
its assessment, the Council shall--
          (1) utilize to the maximum extent practicable data on 
        water supply and demand available in the files of 
        member agencies of the Council;
          (2) collect and compile any additional data it deems 
        necessary for complete and accurate assessments;
          (3) give full consideration to the constraints upon 
        availability imposed by treaty, compact, court decree, 
        State water laws, and water rights granted pursuant to 
        State and Federal law;
          (4) assess the effects of development of such 
        technology on water quality;
          (5) include estimates of cost associated with 
        production and management of the required water supply, 
        and the cost of disposal of waste water generated by 
        the proposed facility or process;
          (6) assess the environmental, social, and economic 
        impact of any change in use of currently utilized water 
        resource that may be required by the proposed facility 
        or process; and
          (7) consult with the Council on Environmental 
        Quality.
    (b) For any proposed demonstration project which may 
involve a significant impact on water resources, the 
[Administrator] Secretary shall, as a precondition of Federal 
assistance to that project, request the Water Resources Council 
to prepare an assessment of water requirements and availability 
for such project. A report on the assessment shall be published 
in the Federal Register for public review thirty days prior to 
the expenditure of Federal funds on the demonstration.
    (c) For any proposed Federal assistance for commercial 
application of energy technologies pursuant to this Act, the 
Water Resource Council shall, as a precondition of such Federal 
assistance, provide to the [Administrator] Secretary an 
assessment of the availability of adequate water resources for 
such commercial application and an evaluation of the 
environmental, social, and economic impacts of the dedication 
of water to such uses.
    (d) Reports of assessments and evaluations prepared by the 
Council pursuant to subsections (a) and (c) shall be published 
in the Federal Register and at least ninety days shall be 
provided for public review and comment. Comments received shall 
accompany the reports when they are submitted to the 
[Administrator] Secretary and shall be available to the public.
    (e) The Council shall include a broad survey and analysis 
of regional and national water resource availability for energy 
development in the biennial assessment required by section 
102(a) of the WaterResources Planning Act (42 U.S.C. 1962a-
1(a)).
    (f) The [Administrator] Secretary shall, upon enactment of 
this subsection, be a member of the Council.

           *       *       *       *       *       *       *

                      APPROPRIATION AUTHORIZATION

    Sec. 16. (a) There may be appropriated to the 
[Administrator] Secretary to carry out the purposes of this Act 
such sums as may be authorized in annual authorization Acts.
    [(b) Of the amounts appropriated pursuant to subsection (a) 
of this section--]
          [(1) $500,000 annually shall be made available by 
        fund transfer to the Council on Environmental Quality 
        for the purposes authorized by section 11; and]
          [(2) not to exceed $1,000,000 annually shall be made 
        available by fund transfer to the Water Resources 
        Council for the purposes authorized by section 13]
    [(c) There also may be appropriated to the Administrator by 
separate Acts such amounts as are required for demonstration 
projects for which the total Federal contribution to 
construction costs exceeds $50,000,000.]

            CENTRAL SOURCE OF NONNUCLEAR ENERGY INFORMATION

    Sec. 17. The [Administrator] Secretary shall promptly 
establish, develop, acquire, and maintain a central source of 
information on all energy resources and technology in 
furtherance of the [Administrator's] research, development, and 
demonstration mission carried out directly or indirectly under 
this Act. When the [Administrator] Secretary determines that 
such information is needed to carry out the purposes of this 
Act, he may acquire proprietary and other information (a) by 
purchase through negotiation or by donation from any person, or
    (b) from another Federal agency. The information maintained 
by the [Administrator] Secretary shall be made available to the 
public, subject to the provisions of section 552 of title 5, 
United States Code, and section 1905 of title 18, United States 
Code, and to other Government agencies in a manner that will 
facilitate its dissemination; Provided, That upon a showing 
satisfactory to the [Administrator] Secretary by any person 
that any information, or portion thereof, obtained under this 
section by the [Administrator] Secretary directly or indirectly 
from such person, would, if made public, divulge
          (1) trade secrets or
          (2) other proprietary information of such person, the 
        [Administrator] Secretary shall not disclose such 
        information and disclosure thereof shall be punishable 
        under section 1905 [or] of title 18, United States 
        Code: Provided further, That the [Administrator] 
        Secretary shall, upon request, provide such information 
        to
                  (A) any delegate of the [Administrator] 
                Secretary for the purpose of carrying out this 
                Act, and
                  (B) the Attorney General, the Secretary of 
                Agriculture, the Secretary of the Interior, the 
                Federal Trade Commission, [the Federal Energy 
                Administration], the Environmental Protection 
                Agency, [the Federal Power Commission], the 
                Federal Energy Regulatory Commission, the 
                [General Accounting Office], [Government 
                Accountability Office], other Federal agencies, 
                when necessary to carry out their duties and 
                responsibilities under this and other statutes, 
                but such agencies and agency heads shall not 
                release such information to the public. This 
                section is not authority to withhold 
                information from Congress or any committee of 
                Congress upon request of the chairman or 
                ranking minority member.

                          [ENERGY INFORMATION

    [Sec. 18. The Administrator is, upon request, authorized to 
obtain energy information under section 11(d) of the Energy 
Supply and Environmental Coordination Act of 1974, as amended 
(15 U.S.C. 796(d)).

          [LOAN GUARANTEES FOR ALTERNATIVE FUEL DEMONSTRATION

                               FACILITIES

    [Sec. 19. (a) It is the purpose of this section--
          [(1) to assure adequate Federal support to foster a 
        demonstration program to produce alternative fuels from 
        coal, oil shale, biomass, and other domestic resources;
          [(2) to authorize assistance, through loan guarantees 
        under subsection (b) and (y) for construction and 
        startup and related costs, to demonstration facilities 
        for the conversion of domestic coal, oil shale, 
        biomass, and other domestic resources into alternative 
        fuels; and
          [(3) to gather information about the technological, 
        economic, environmental, and social costs, benefits, 
        and impacts of such demonstration facilities.
    [(b)(1) Except as provided in paragraph (5) of this 
subsection and subsection (y) of this section the Administrator 
is authorized, in accordance with such rules and regulations as 
he shall prescribe after consultation with the Secretary of the 
Treasury, to guarantee and to make commitments to guarantee, in 
such manner and subject to such conditions (not inconsistent 
with the provisions of this Act) as he deems appropriate, the 
payment of interest on, and the principal balance of, bonds, 
debentures, notes, and other obligations issued by, or on 
behalf of, any borrower for the purpose of financing the 
construction and startup costs of demonstration facilities for 
the conversion of domestic coal, oil shale, biomass, and other 
domestic resources into alternative fuels: Provided, That no 
loan guarantee for a full sized oil shale facility shall be 
provided under this section until after successful 
demonstration of a modular facility producing between six and 
ten thousand barrels per day, taking into account such 
considerations as water usage, environmental effects, waste 
disposal, labor conditions, health and safety, and the 
socioeconomic impacts on local communities: Provided further, 
That no loan guarantee shall be available under this subsection 
for the manufacture of component parts for demonstration 
facilities eligible for assistance under this subsection.
    [(2) An applicant for any financial assistance under this 
section shall provide information to the Administrator in such 
form and with such content as the Administrator deems 
necessary.
    [(3) Prior to issuing any guarantee under this section the 
Administrator shall obtain the concurrence of the Secretary of 
the Treasury with respect to the timing, interest rate, and 
substantial terms and conditions of such guarantee. The 
Secretary of the Treasury shall insure to the maximum extent 
feasible that the timing, interest rate, and substantial terms 
and conditions of such guarantee will have the minimum possible 
impact on the capital markets of the United States, taking into 
account other Federal direct and indirect securities 
activities.
    [(4) 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.
    [(5)(A) The Administrator is authorized, in the case of a 
facility for the conversion of oil shale to alternative fuels 
which is determined by the Administrator pursuant to the 
proviso in paragraph (1) of this subsection, to be constructed 
at a modular size, to enter into a cooperative agreement with 
the applicant in accordance with section 8 of this Act and the 
other provisions of this Act to share the estimated total 
design and construction costs, plus operation and maintenance 
costs, of such modular facility. The Federal share shall not 
exceed 75 per centum of such costs. All receipts for the sale 
of any products produced during the operation of the facility 
shall be used to offset the costs incurred in the operation and 
maintenance of the facility. The provisions of subsections (d), 
(e), (k), (m), (p), (s), (t), (u), (v), (w), and (x) shall 
apply to any such modular facility. The provisions of this 
section shall apply to any loan guarantee for such modular 
facility.
    [(B) After successful demonstration of the modular 
facility, as determined by the Administrator, the facility is 
eligible for financial assistance under this section for 
purposes of expansion to a full sized facility and the 
applicant may purchase the Federal interest in the modular 
facility as represented by the Federal share thereof by means 
of (i) a cash payment to the United States, or (ii) a share of 
the product or sales resulting from such expanded operation, as 
determined by the Administrator. If expansion of such facility 
is determined not to be warranted by the Administrator, he may, 
at the option of the applicant, dispose of the modular facility 
to the applicant at not less than fair market value, as 
determined by the Administrator as of the date of the disposal, 
or otherwise dispose of it, in accordance with applicable 
provisions of law, and distribute the net proceeds thereof, 
after expenses of such disposal, to the applicant in proportion 
to the applicant's share of the costs of such facility.
    [(6) To the extent possible, loan guarantees shall be 
issued on the basis of competitive bidding among guarantee 
applicants in a particular technology area.
  [(c) The Administrator, with due regard for the need for 
competition, shall guarantee or make a commitment to guarantee 
any obligation under subsection (b) or (y) only if--
          [(1) the Administrator is satisfied that the 
        financial assistance applied for is necessary to 
        encourage financial participation;
          [(2) the amount guaranteed to any borrower at any 
        time does not exceed--
                  [(A) an amount equal to 75 per centum of the 
                project cost of the demonstration facility as 
                estimated at the time the guarantee is issued, 
                which cost shall not include amounts expended 
                for facilities and equipment used in the 
                extraction of a mineral other than coal or 
                shale, and in the case of coal only to the 
                extent that the Administrator determines that 
                the coal is to be converted to alternative 
                fuel; and
                  [(B) an amount equal to 60 per centum of that 
                portion of the actual total project cost of any 
                demonstration facility which exceeds the 
                project cost of such facility as estimated at 
                the time the loan guarantee is issued;
          [(3) the Administrator has determined that there will 
        be a continued reasonable assurance of full repayment;
          [(4) the obligation is subject to the condition that 
        it not be subordinated to any other financing;
          [(5) the Administrator has determined, taking into 
        consideration all reasonably available forms of 
        assistance under this section and other Federal and 
        State statutes, that the impacts resulting from the 
        proposed demonstration facility have been fully 
        evaluated by the borrower, the Administrator, and the 
        Governor of the affected State, and that effective 
        steps have been taken or will be taken in a timely 
        manner to finance community planning and development 
        costs resulting from such facility under this section, 
        under other provisions of law, or by other means;
          [(6) the maximum maturity of the obligation does not 
        exceed twenty years, or 90 per centum of the projected 
        useful economic life of the physical assets of the 
        demonstration facility covered by the guarantee, 
        whichever is less, as determined by the Administrator;
          [(7) the Administrator has determined that, in the 
        case of any demonstration or modular facility planned 
        to be located on Indian lands, the appropriate Indian 
        tribe, with the approval of the Secretary of the 
        Interior, has given written consent to such location;
          [(8) the obligation provides for the orderly and 
        ratable retirement of the obligation and includes 
        sinking fund provisions, installment payment provisions 
        or other methods of payments and reserves as may be 
        reasonably required by the Administrator. Prior to 
        approving and repayment schedule the Administrator may 
        consider the date on which operating revenues are 
        anticipated to be generated by the project. To the 
        maximum extent possible repayment or provision 
        therefore shall be required to be made in equal payment 
        payable at equal intervals; and
          [(9) the obligation provides that the Administrator 
        shall, after, a period of not less than ten years from 
        issuance of the obligation, taking into consideration 
        whether the Government's needs for information to be 
        derived from the project have been substantially met 
        and whether the project is capable of commercial 
        operation, determine the feasibility and advisability 
        of terminating the Federal participation in the 
        project. In the event that such determination is 
        positive, the Administrator shall notify the borrower 
        and provide the borrower with not less than two nor 
        more than three years in which to find alternative 
        financing. At the expiration of the designated period 
        of time, if the borrower has been unable to secure 
        alternative financing, the Administrator is authorized 
        to collect from the borrower an additional fee of 1 per 
        centum per annum on the remaining obligation to which 
        the Federal guarantee applies.

           *       *       *       *       *       *       *

    [(e)(1) As soon as the Administrator knows the geographic 
location of a proposed facility for which a guarantee or a 
commitment to guarantee or cooperative agreement is sought 
under this section, he shall inform the Governor of the State, 
and officials of each political subdivision and Indian Tribe, 
as appropriate, in which the facility would be located or which 
would be impacted by such facility. The Administrator shall not 
guarantee or make a commitment to guarantee or enter into a 
cooperative agreement under subsection (b) or subsection (y) of 
this section, if the Governor of the State in which the 
proposed facility would be located recommends that such action 
not be taken, unless the Administrator finds that there is an 
overriding national interest in taking such action in order to 
achieve the purpose of this section. If the Administrator 
decides to guarantee or make a commitment to guarantee or enter 
into a cooperative agreement despite a Governor's 
recommendation not to take such action, the Administrator shall 
communicate, in writing, to the Governor reasons for not 
concurring with such recommendation. This Administrator's 
decision, pursuant to this subsection, shall be final unless 
determined upon judicial review initiated by the Governor to be 
unlawful by the reviewing court pursuant to 5 U.S.C. 706(2) (A) 
through (D). Such review shall take place in the United States 
court of appeals for the circuit in which the State involved is 
located, upon application made within ninety days from the date 
of such decision. The Administrator shall, by regulation, 
establish procedures for review of, and comment on, the 
proposed facility by States, local political subdivisions, and 
Indian tribes which may be impacted by such facility, and the 
general public.
    (2) The Administrator shall review and approve the plans of 
the applicant for the construction and operation of any 
demonstration and related facilities constructed or to be 
constructed with assistance under this section. Such plans and 
the actual construction shall include such monitoring and other 
data-gathering costs associated with such facility as are 
required by the comprehensive plan and program under this 
section. The Administrator shall determine the estimated total 
cost of such demonstration facility, including, but not limited 
to, construction costs, startup costs, costs to political 
subdivisions and Indian tribe by such facility, and cost of any 
water storage facilities needed in connection with such 
demonstration facility, and determine who shall pay such costs. 
Such determination shall not be binding upon the States, 
political subdivisions, or Indian tribes.
    [(3) There is hereby established a panel to advise the 
Administrator on matters relating to the program authorized by 
this section, including, but not limited to, the impact of the 
demonstration facilities on communities and States and Indian 
tribes, the environmental and health and safety effects of such 
facilities, and the means, measures, and planning for 
preventing or mitigating such impacts, and other matters 
relating to the development of alternative fuels and other 
energy sources under this section. The panel shall include such 
Governors or their designees as shall be designated by the 
Chairman of the National Governors Conference. Representatives 
of Indian tribes, industry, environmental organizations, and 
the general public shall be appointed by the Administrator. The 
Chairman of the panel shall be selected by the Administrator. 
No person shall be appointed to the panel who has a financial 
interest in any applicant applying for assistance under this 
section. Members of the panel shall serve without compensation. 
The provisions of section 106(e) of the Energy Reorganization 
Act of 1974 (42 U.S.C. 5816(e)) shall apply to the panel.
    [(f) Except in accordance with reasonable terms and 
conditions contained in the written contract of guarantee, no 
guarantee issued or commitment to guarantee made under this 
section shall be terminated, canceled, or otherwise revoked. 
Such a guarantee or commitment shall be conclusive evidence 
that the underlying obligation is in compliance with the 
provisions of this section and that such obligation has been 
approved and is legal as to principal, interest, and other 
terms. Subject to the conditions of the guarantee or commitment 
to guarantee, such a guarantee shall be incontestable in the 
hands of the holder of the guaranteed obligation, except as to 
fraud or material misrepresentation on the part of the holder.
    [(g)(1) If there is a default by the borrower, as defined 
in regulations promulgated by the Administrator and in the 
guarantee contract, the holder of the obligation shall have the 
right to demand payment of the unpaid amount from the 
Administrator. Within such period as may be specified in the 
guarantee or related agreements, the Administrator shall pay to 
the holder of the obligation the unpaid interest on, and unpaid 
principal of, the guaranteed obligation as to which the 
borrower has defaulted, unless the Administrator finds that 
there was no default by the borrower in the payment of interest 
or principal or that such default has been remedied. Nothing in 
this section shall be construed to preclude any forebearance by 
the holder of the obligation for the benefit of the borrower 
which may be agreed upon by the parties to the guaranteed 
obligation and approved by the Administrator.
    [(2) If the Administrator makes a payment under paragraph 
(1) of this subsection, the Administrator shall be subrogated 
to the rights of the recipient of such payment (and such 
subrogation shall be expressly set forth in the guarantee or 
related agreements), including the authority to complete, 
maintain, operate, lease, or otherwise dispose of any property 
acquired pursuant to such guarantee or related agreements, or 
any other property of the borrower (of a value equal to the 
amount of such payment) to the extent that the guarantee 
applies to amounts in excess of the estimated project cost 
under subsection (c)(2)(B), without regard to the provisions of 
the Federal Property and Administrative Services Act of 1949, 
as amended, except section 207 of that Act (40 U.S.C. 488), or 
any other law, or to permit the borrower pursuant to an 
agreement with the Administrator, to continue to pursue the 
purposes of the demonstration facility if the Administrator 
determines that this is in the public interest. The rights of 
the Administrator with respect to any property acquired 
pursuant to such guarantee or related agreements, shall be 
superior to the rights of any other person with respect to such 
property.
    [(3) In the event of a default on any guarantee under this 
section, the Administrator shall notify the Attorney General, 
who shall take such action as may be appropriate to recover the 
amounts of any payments made under paragraph (1) including any 
payment of principal and interest under subsection (h) from 
such assets of the defaulting borrower as are associated with 
the demonstration facility, or from any other security included 
in the terms of the guarantee.
    [(4) For purposes of this section, patents, including any 
inventions for which a waiver was made by the Administrator 
under section 9 of this Act, and technology resulting from the 
demonstration facility, shall be treated as project assets of 
such facility. The guarantee agreement shall include such 
detailed terms and conditions as the Administrator deems 
appropriate to protect the interests of the United States in 
the case of default and to have available all the patents and 
technology necessary for any person selected, including, but 
not limited to the Administrator, to complete and operate the 
defaulting project. Furthermore, the guarantee agreement shall 
contain a provision specifying that patents, technology, and 
other proprietary rights which are necessary for the completion 
or operation of the demonstration facility shall be available 
to the United States and its designees on equitable terms, 
including due considerations to the amount of the United States 
default payments. Inventions made or conceived in the course of 
or under such guarantee, title to which is vested in the United 
States under this Act, shall not be treated as project assets 
of such facility for disposal purposes under this subsection, 
unless the Administrator determines in writing that it is in 
the best interests of the United States to do so.
    [(h) With respect to any obligation guaranteed under this 
section, the Administrator is authorized to enter into a 
contract to pay, and to pay, holders of the obligations, for 
and on behalf of the borrowers, from the fund established by 
this section, the principal and interest payments which become 
due and payable on the unpaid balance of such obligation if the 
Administrator finds that--
          [(1) the borrower is unable to meet such payments and 
        is not in default; it is in the public interest to 
        permit the borrower to continue to pursue the purposes 
        of such demonstration facility; and the probable net 
        benefit to the Federal Government in paying such 
        principal and interest will be greater than that which 
        would result in the event of a default;
          [(2) the amount of such payment which the 
        Administrator is authorized to pay shall be no greater 
        than the amount of principal and interest which the 
        borrower is obligated to pay under the loan agreement; 
        and
          [(3) the borrower agrees to reimburse the 
        Administrator for such payment on terms and conditions, 
        including interest, which are satisfactory to the 
        Administrator.
    [(i) Regulations required by this section shall be issued 
within one hundred and eighty days after enactment of this 
section. All regulations under this section and any amendments 
thereto shall be issued in accordance with section 553 of title 
5, of the United States Code.
    [(j) The Administrator shall charge and collect fees for 
guarantees of obligations authorized by subsection (b)(1), in 
amounts which (1) are sufficient in the judgment of the 
Administrator to cover the applicable administrative costs, and 
(2) reflect the percentage of projects costs guaranteed. In no 
event shall the fee be less than 1 per centum per annum of the 
outstanding indebtedness covered by the guarantee. Nothing in 
this subsection shall be construed to apply to community 
planning and development assistance pursuant to subsection (k) 
of this section.
    [(k)(1) In accordance with such rules and regulations as 
the Administrator inconsultation with the Secretary of the 
Treasury shall prescribe, and subject to such terms and conditions as 
he deems appropriate, the Administrator is authorized, for the purpose 
of financing essential community development and planning which 
directly result from, or are necessitated by, one or more demonstration 
facilities assisted under this section to--
          [(A) guarantee and make commitments to guarantee the 
        payment of interest on, and the principal balance of 
        obligations for such financing issued by eligible 
        States, political subdivisions, or Indian tribes,
          [(B) guarantee and make commitments to guarantee the 
        payment of taxes imposed on such demonstration 
        facilities by eligible non-Federal taxing authorities 
        which taxes are earmarked by such authorities to 
        support the payment of interest and principal on 
        obligations for such financing, and
          [(C) require that the applicant for assistance for a 
        demonstration facility under this section advance sums 
        of eligible States, political subdivisions, and Indian 
        tribes to pay for the financing of such development and 
        planning: Provided, That the State, political 
        subdivision, or Indian tribe agrees to provide tax 
        abatement credits over the life of the facilities for 
        such payments by such applicant.
    [(2) Prior to issuing any guarantee under this subsection, 
the Administrator shall obtain the concurrence of the Secretary 
of the Treasury with respect to the timing, interest rate, and 
substantial terms and conditions of such guarantee. The 
Secretary of the Treasury shall insure to the maximum extent 
feasible that the timing, interest rate, and substantial terms 
and conditions of such guarantee will have the minimum possible 
impact on the capital markets of the United States, taking into 
account other Federal direct and indirect securities 
activities.
    [(3) In the event of any default by the borrower in the 
payment of taxes guaranteed by the Administrator under this 
subsection, the Administrator shall pay out of the fund 
established by this section such taxes at the time or times 
they may fall due, and shall have by reason of such payment a 
claim against the borrower for all sums paid plus interest.
    [(4) If after consultation with the State, political 
subdivision, or Indian tribe, the Administrator finds that the 
financial assistance programs of paragraph (1) of this 
subsection will not result in sufficient funds to carry out the 
purposes of this subsection, then the Administrator may--
        [(A) make direct loans to the eligible States, 
        political subdivisions, or Indian tribes for such 
        purposes: Provided, That such loans shall be made on 
        such reasonable terms and conditions as the 
        Administrator shall prescribe: Provided further, That 
        the Administrator may waive repayment of all or part of 
        a loan made under this paragraph, including interest, 
        if the State or political subdivision or Indian tribe 
        involved demonstrates to the satisfaction of the 
        Administrator that due to a change in circumstances 
        there will be net adverse impacts resulting from such 
        demonstration facility that would probably cause such 
        State, subdivision, or tribe to default on the loan; or
          [(B) require that any community development and 
        planning costs which are associated with, or result 
        from, such demonstration facility and which are 
        determined by the Administrator to be appropriate for 
        such inclusion shall be included in the total costs of 
        the demonstration facility.
    [(5) The Administrator is further authorized to make grants 
to States, political subdivisions, or Indian tribes for 
studying and planning for the potential economic, 
environmental, and social consequences of demonstration 
facilities, and for establishing related management expertise.
    [(6) At any time the Administrator may, with the 
concurrence of the Secretary of the Treasury, redeem, in whole 
or in part, out of the fund established by this section, the 
debt obligations guaranteed or the debt obligations for which 
tax payments are guaranteed under this subsection.
    [(7) When one or more States, political subdivisions, or 
Indian tribes would be eligible for assistance under this 
subsection, but for the fact that construction and operation of 
the demonstration facilities occurs outside its jurisdiction, 
the Administrator is authorized to provide, to the greatest 
extent possible, arrangements for equitable sharing of such 
assistance.
    [(8) Such amounts as may be necessary for direct loans and 
grants pursuant to this subsection shall be available as 
provided in annual authorization Acts.
    [(9) The Administrator, if appropriate, shall provide 
assistance in the financing of up to 100 per centum of the 
costs of the required community development and planning 
pursuant to this subsection.
    [(10) In carrying out the provisions of this subsection, 
the Administrator shall provide that title to any facility 
receiving financial assistance under this subsection shall vest 
in the applicable State, political subdivision, or Indian 
tribe, as appropriate, and in the case of default by the 
borrower on a loan guarantee such facility shall not be 
considered a project asset for the purposes of subsection (g) 
of this section.
    [(l)(1) The Administrator is directed to submit a report to 
the Congress within one hundred and eighty days after the 
enactment of this section setting forth his recommendations on 
the best opportunities to implement a program of Federal 
financial assistance with the objective of demonstrating 
production and conservation of energy. Such report shall be 
updated and submitted to Congress at least annually and shall 
include specific comments and recommendations by the Secretary 
of the Treasury on the methods and procedures set forth in 
subparagraph (B)(viii) of this subsection, including their 
adequacy, and changes necessary to satisfy the objectives 
stated in this subsection. This report shall include--
          [(A) a study of the purchase or commitment to 
        purchase by the Federal Government, for the use by the 
        United States, of all or a portion of the products of 
        any alternative fuel facilities constructed pursuant to 
        this program as a direct or an alternate form of 
        Federal assistance, which assistance, if recommended, 
        shall be carried out pursuant to section 7(a)(4) of 
        this Act; and
          [(B) a comprehensive plan and program to acquire 
        information and evaluate the environmental, economic, 
        social, and technological impacts of the demonstration 
        program under this section. In preparing such a 
        comprehensive plan and program, the Administrator shall 
        consult with the Environmental Protection Agency, the 
        Federal Energy Administration, the Department of 
        Housing and Urban Development, the Department of the 
        Interior, the Department of Agriculture, and the 
        Department of the Treasury, and shall include therein, 
        but not be limited to, the following:
                  [(i) information about potential 
                demonstration facilities proposed in the 
                program under this section;
                  [(ii) any significant adverse impacts which 
                may result from any activity included in the 
                program;
                  [(iii) the extent to which it is feasible to 
                commercialize the technologies as they affect 
                different regions of the Nation;
                  [(iv) proposed regulations required to carry 
                out the purposes of this section;
                  [(v) a list of Federal agencies, governmental 
                entities, and other persons that will be 
                consulted or utilized to implement the program;
                  [(vi) the methods and procedures by which the 
                information gathered under the program will be 
                analyzed and disseminated;
                  [(vii) a plan for the study and monitoring of 
                the health effects of such facilities on 
                workers and other persons, including, but not 
                limited to, any carcinogenic effect of 
                alternative fuels; and
                  [(viii) the methods and procedures to insure 
                that (I) the use of the Federal assistance for 
                demonstration facilities is kept to the minimum 
                level necessary for the information objectives 
                of this section, (II) the impact of loan 
                guarantees on the capital markets of the United 
                States is minimized, taking into account other 
                Federal direct and indirect securities 
                activities, and any economic sectors which may 
                be negatively impacted as a result of the 
                reduction of capital by the placement of 
                guaranteed loans, and (III) the granting of 
                Federal loan guarantees under this Act does not 
                impede movement toward improvement in the 
                climate for attracting private capital to 
                develop alternative fuels without continued 
                direct Federal incentives.
    [(2) The Administrator shall annually submit a detailed 
report to the Congress concerning--
          [(A) the actions taken or not taken by the 
        Administrator under this section during the preceding 
        fiscal year, and including, but not be limited to (i) a 
        discussion of the status of each demonstration facility 
        and related facilities financed under this section, 
        including progress made in the development of such 
        facilities, and the expected or actual production from 
        each such facility, including byproduct production 
        therefrom, and the distribution of such products and 
        byproducts, (ii) a detailed statement of the financial 
        conditions of each such demonstration facility, (iii) 
        data concerning the environmental, community, and 
        health and safety impacts of each such facility and the 
        actions taken or planned to prevent or mitigate such 
        impacts, (iv) the administrative and other costs 
        incurred by the Administrator and other Federal 
        agencies in carrying out this program, and (v) such 
        other data as may be helpful in keeping Congress and 
        the public fully and currently informed about the 
        program authorized by this section; and
                  [(B) the activities of the fund referred to 
                in subsection (n) of this section during the 
                preceding fiscal year, including a statement of 
                the amount and source of fees or other moneys, 
                property, or assets deposited into the funds, 
                all payments made, the notes or other 
                obligations issued by the Administrator, and 
                such other data as may be appropriate.
    [(3) The annual reports required by this subsection shall 
be a part of the annual report required by section 15 of this 
Act, except that the matters required to be reported by this 
subsection shall be clearly set out and identified in such 
annual reports. Such reports and the one-hundred-and-eighty-day 
report required in paragraph (1) of this subsection shall be 
transmitted to the Speaker of the House of Representatives and 
the House Committee on Science, Space, and Technology and to 
the President of the Senate and the Committee on Energy and 
Natural Resources of the Senate.
    [(m) Prior to issuing any guarantee or commitment to 
guarantee or cooperative agreement pursuant to subsection (b) 
or subsection (y) of this section the Administrator shall 
submit to the Committee on Science, Space, and Technology of 
the House of Representatives and the Committee on Energy and 
Natural Resources of the Senate a full and complete report on 
the proposed demonstration facility and such guarantee, 
agreement, or contract. Such guarantee, commitment to 
guarantee, cooperative agreement, or contract shall not be 
finalized under the authority granted by this section prior to 
the expiration of ninety calendar days (not including any day 
on which either House of Congress is not in session because of 
an adjournment of more than three calendar days to a day 
certain) from the date on which such report is received by such 
committees: Provided, That, where the cost of a demonstration 
facility to be assisted with a guarantee or cooperative 
agreement pursuant to subsection (b) or subsection (y) of this 
section exceeds $50,000,000 such guarantee or commitment to 
guarantee or cooperative agreement shall not be finalized 
unless (1) the making of such guarantee or commitment or 
agreement is specificallyauthorized by legislation hereafter 
enacted by the Congress or (2) both Houses pass a resolution stating in 
substance that the Congress favors the making of such guarantee or 
commitment or agreement.
    [(n)(1) There is hereby created within the Treasury a 
separate fund (hereafter in this section called the ``fund'') 
which shall be available to the Administrator without fiscal 
year limitation as a revolving fund for the purpose of carrying 
out the program authorized by subsection (b)(1) and subsections 
(g), (h), (k), and (y) of this section.
    [(2) There are hereby authorized to be appropriated to the 
fund for administrative expenses from time to time such amounts 
as may be necessary to carry out the purposes of the applicable 
provisions of this section, inclusding, but not limited to, the 
payments of interest and principal and the payment of interest 
differentials and redemption of debt. All amounts received by 
the Administrator as interest payments or repayments of 
principal on loans which are guaranteed under this section, 
fees, and any other moneys, property, or assets derived by him 
from operations under this section shall be deposited in the 
fund.
    [(3) All payments on obligations, appropriate expenses 
(including reimbursements to other Government accounts), and 
repayments pursuant to operations of the Administrator under 
this section shall be paid from the fund subject to 
appropriations. If at any time the Administrator determines 
that moneys in the fund exceed the present and reasonably 
foreseeable future requirements of the fund, such excess shall 
be transferred to the general fund of the Treasury.
    [(4) If at any time the moneys available in the fund are 
insufficient to enable the Administrator to discharge his 
responsibilities as authorized by subsections (b)(1), (g), (h), 
and (y) of this section, the Administrator shall issue to the 
Secretary of the Treasury notes or other obligations in such 
forms and denominations, bearing such maturities, and subject 
to such terms and conditions as may be prescribed by the 
Secretary of the Treasury. Redemption of such notes or 
obligations shall be made by the Administrator from 
appropriations or other moneys available under paragraph (2) of 
this subsection for loan guarantees authorized by subsection 
(b)(1) and subsections (g), (h), (k), and (y) of this section. 
Such notes or other obligations shall bear interest at a rate 
determined by the Secretary of the Treasury, which shall be not 
less than a rate determined by taking into consideration the 
average market yield on outstanding marketable obligations of 
the United States of comparable maturities during the month 
preceding the issuance of the notes or other obligations. The 
Secretary of the Treasury may at any time sell any of the notes 
or other obligations acquired by him under this subsection.
    [(5) The provisions of this subsection do not apply to 
direct loans or planning grants made under subsection (k) of 
this section.
    [(o) For the purposes of this section, the term--
          [(1) ``State'' means any State of the United States, 
        the District of Columbia, the Commonwealth of Puerto 
        Rico, Guam, the Virgin Islands, American Samoa, any 
        territory or possession of the United States,
          [(2) ``United States'' means the several States, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        and American Samoa,
          [(3) ``borrower'' or ``applicant'' shall include any 
        individual, firm, corporation, company, partnership, 
        association, society, trust, joint venture, joint stock 
        company, or other non-Federal entity, and
          [(4) ``biomass'' shall include, but is not limited 
        to, animal and timber waste, municipal and industrial 
        waste, sewage, sludge, and oceanic and terrestrial 
        crops.
    [(p)(1) An applicant seeking a guarantee or cooperative 
agreement under subsection (b) or subsection (y) of this 
section must be a citizen or national of the United States. A 
corporation, partnership, firm, or association shall not be 
deemed to be a citizen or national of the United States unless 
the Administrator determines that it satisfactorily meets all 
the requirements of section 802 of title 46, United States Code 
for determining such citizenship, except that the provisions in 
subsection (a) of such section 802 concerning (A) the 
citizenship of officers or directors of a corporation, and (B) 
the interest required to be owned in the case of a corporation, 
association, or partnership operating a vessel in the coastwise 
trade, shall not be applicable.
    [(2) The Administrator, in consultation with the Secretary 
of State, may waive such requirements in the case of a 
corporation, partnership, firm, or association, controlling 
interest in which is owned by citizens of countries which are 
participants in the International Energy Agreement.
    [(q) No part of the program authorized by this section 
shall be transferred to any other agency or authority, except 
pursuant to Act of Congress enacted after the date of enactment 
of this section.
    [(r) Inventions made or conceived in the course of or under 
a guarantee authorized by this section shall be subject to the 
title and waiver requirements and conditions of section 9 of 
this Act.
    [(s) Nothing in this section shall be construed as 
affecting the obligations of any person receiving financial 
assistance pursuant to this section to comply with Federal and 
State environmental, land use, water, and health and safety 
laws and regulations or to obtain applicable Federal and State 
permits, licenses, and certificates.
    [(t) The information maintained by the Administrator under 
this section shall be made available to the public subject to 
the provision of section 552 of title 5, United States Code, 
and section 1905 of title 18, United States Code, and to other 
Government agencies in a manner that will facilitate its 
dissemination: Provided, That upon a showing satisfactory to 
the Administrator by any person that any information, or 
portion thereof obtained under this section by the 
Administrator directly or indirectly from such person would, if 
made public, divulge (1) trade secrets or (2) other proprietary 
information of such person, the Administrator shall not 
disclose such information and disclosure thereof shall be 
punishable under section 1905 of title 18, United States Code: 
Provided further, That the Administrator shall, upon request, 
provide such information to--
          [(A) any delegate of the Administrator for the 
        purpose of carrying out this Act, and
          [(B) the Attorney General, the Secretary of 
        Agriculture, the Secretary of the Interior, the Federal 
        Trade Commission, the Federal Energy Administration, 
        the Environmental Protection Agency, the Federal Power 
        Commission, the General Accounting Office, other 
        Federal agencies, or heads of other Federal agencies, 
        when necessary to carry out their duties and 
        responsibilities under this and other statutes, but 
        such agencies and agency heads shall not release such 
        information to the public. This section is not 
        authority to withhold information from Congress, or 
        from any committee of Congress upon request of the 
        Chairman. For the purposes of this subsection, the term 
        ``person'' shall include the borrower.
    [(u) Notwithstanding any other provision of this section, 
the authority provided in this section to make guarantees or 
commitments to guarantee or enter into cooperative agreements 
under subsection (b)(1) or subsection (y), to make guarantees 
or commitments to guarantees, or to make loans or grants, under 
subsection (k), to make contracts under subsection (h), and to 
use fees and receipts collected under subsections (b), (j), and 
(y) of this section, and the authorities provided under 
subsection (n) of this section shall be effective only to the 
extent provided, without fiscal year limitation, in 
appropriation Acts enacted after the date of enactment of this 
section.
    [(v) No person in the United States shall on the grounds of 
race, color, religion, national origin, or sex, be excluded 
from participation in, be denied benefits of, or be subjected 
to discrimination under any program or activity funded in whole 
or in part with assistance made available under this section: 
Provided, That Indian tribes are exempt from the operation of 
this subsection: Provided further, That such exemption shall be 
limited to the planning and provision of public facilities 
which are located on reservations and which are provided for 
members of the affected Indian tribes as the primary 
beneficiaries.
    [(w) In carrying out his functions under this section, the 
Administrator shall provide a realistic and adequate 
opportunity for small business concerns to participate in the 
program to the optimum extent feasible consistent with the size 
and nature of each project.
    [(x)(1) recipients of financial assistance under this 
section shall keep such records and other pertinent documents, 
as the Administrator shall prescribe by regulation, including, 
but not limited to, records which fully disclose the 
disposition of the proceeds of such assistance, the cost of any 
facility, the total cost of the provision of public facilities 
for which assistance was used and such other records as the 
Administrator may require to facilitate an effective audit. The 
Administrator and the Comptroller General of the United States, 
or their duly authorized representative shall have access, for 
the purpose of audit, to such records and other pertinent 
documents.
    [(2) All laborers and mechanics employed by contractors or 
subcontractors in the performance of construction work financed 
in whole or in part with assistance under this section shall be 
paid wages at rates not less than those prevailing on similar 
construction in the locality as determined by the Secretary of 
Labor in accordance with the Davis-Bacon Act, as amended (40 
U.S.C. 276a-276a-5). The Secretary of Labor shall have, with 
respect to such labor standards, the authority and functions 
set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 
3176; 64 Stat. 1267) and section 2 of the Act of June 13, 1934, 
as amended (48 Stat. 948; 40 U.S.C. 276(c)).
    [(y)(1) The Administrator is authorized in accordance with 
such rules and regulations as he shall prescribe after 
consultation with the Secretary of the Treasury, to guarantee 
and to make commitments to guarantee the payment of interest 
on, and the principal balance of, bonds, debentures, notes, and 
other obligations issued by or on behalf of any borrower for 
the purpose of (A) financing the construction and startup costs 
of demonstration facilities for the conversion of municipal or 
industrial waste, sewage sludge, or other municipal organic 
wastes into synthetic fuels, and (B) financing the construction 
and startup costs of demonstration facilities to generate 
desirable forms of energy (including synthetic fuels) from 
municipal or industrial waste, sewage sludge, or other 
municipal organic waste. With respect to a guarantee or a 
commitment to guarantee authorized by this subsection; the 
following subsections of this section shall not apply: (b)(1), 
(b)(5), (c)(2), (c)(5), (c)(6), (c)(7), (c)(8), (c)(9), (e)(3), 
(j), (k), and (q).
    [(2) In the case where the Administrator seeks to guarantee 
or to make commitments to guarantee as provided by this 
subsection he is authorized to incur an outstanding 
indebtedness which at no time shall exceed $300,000,000.
    [(3) The Administrator shall apply the following provisions 
thereto:
          [(A) With respect to any demonstration facility for 
        the conversion of solid waste (as the term is defined 
        in the Resource Conservation and Recovery Act (42 
        U.S.C. 6903)), the Administrator, prior to issuing any 
        guarantee under this section, must be in receipt of a 
        certification from the Administrator of the 
        Environmental Protection Agency and any appropriate 
        State or areawide solid waste management planning 
        agency that the proposed application for a guarantee is 
        consistent with any applicable suggested guidelines 
        published pursuant to section 1008(a) of the Resource 
        Conservation and Recovery Act, and any applicable State 
        or regional solid waste management plan.
          [(B) The amount guaranteed shall not exceed 75 per 
        centum of the total cost of the commercial 
        demonstration facility, as determined by the 
        Administrator: Provided, That the amount guaranteed may 
        not exceed 90 per centum of the total cost of the 
        commercial demonstration facility during the period of 
        construction and startup.
          [(C) The maximum maturity of the obligation shall not 
        exceed thirty years, or 90 per centum of the projected 
        useful economic life of the physical assets of the 
        commercial demonstration facility covered by the 
        guarantee, whichever is less, as determined by the 
        Administrator.
          [(D) The Administrator shall charge and collect fees 
        for guarantees of obligations in amounts sufficient in 
        the judgment of the Administrator to cover the 
        applicable administrative costs and probable losses on 
        guaranteed obligations, but in any event not to exceed 
        1 per centum per annum of the outstanding indebtedness 
        covered by the guarantee.
          [(E) No part of the program authorized by this 
        section shall be transferred to any other agency or 
        authority, except pursuant to Act of Congress enacted 
        after the date of enactment of this section: Provided, 
        That project agreements entered into pursuant to this 
        section for any commercial demonstration facility for 
        the conversion of bioconversion of solid waste (as that 
        term is defined in the Resource Conservation and 
        Recovery Act) shall be administered in accordance with 
        the May 7, 1976, Interagency Agreement between the 
        Environmental Protection Agency and the Energy Research 
        and Development Administration on the Development of 
        Energy From Solid Wastes, and provided specifically 
        that in accordance with this agreement (i) for those 
        energy-related projects of mutual interest, planning 
        will be conducted jointly by the Environmental 
        Protection Agency and the Energy Research and 
        Development Administration, following which project 
        responsibility will be assigned to one agency; (ii) 
        energy-related projects for recovery of synthetic fuels 
        or other forms of energy from solid waste shall be the 
        responsibility of the Energy Research and Development 
        Administration; and (iii) the Environmental Protection 
        Agency shall retain responsibility for the 
        environmental, economic, and institutional aspects of 
        solid waste projects and for assurance that such 
        projects are consistent with any applicable suggested 
        guidelines pursuant to section 1008 of the Resource 
        Conservation and Recovery Act of 1976 (42 U.S.C. 6901 
        et seq.), as amended, and any applicable State or 
        regional solid waste management plan.
          [(F) With respect to any obligation which is issued 
        after the enactment of this section by, or in behalf 
        of, any State, political subdivision, or Indian tribe 
        and which is either guaranteed under, or supported by 
        taxes levied by said issuer which are guaranteed under, 
        this section, the interest paid on such obligation and 
        received by the purchaser thereof (or the purchaser's 
        successor in interest) shall be included in gross 
        income for the purpose of chapter 1 of the Internal 
        Revenue Code of 1954, as amended: Provided, That the 
        Administrator shall pay to such issuer out of the fund 
        established by this section such portion of the 
        interest on such obligations, as determined by the 
        Secretary of the Treasury to be appropriated after 
        taking into account current market yields (i) on 
        obligations of said issuer, if any, and (ii) on other 
        obligations with similar terms and conditions the 
        interest on which is not so included in gross income 
        for purposes of chapter 1 of such Code, and in 
        accordance with, such terms and conditions as the 
        Secretary of the Treasury shall require.

      [FINANCIAL SUPPORT PROGRAM FOR MUNICIPAL WASTE REPROCESSING 
                        DEMONSTRATION FACILITIES

    [Sec. 20. (a) It is the purpose of this section--
          [(1) to assure adequate Federal support to foster a 
        program to demonstrate municipal waste reprocessing for 
        the production of fuel and energy intensive products; 
        and
          [(2) to gather information about the technological, 
        economic, environmental, and social costs, benefits, 
        and impacts of such demonstration facilities.
    [(b)(1) The Administrator is authorized and directed, to 
the extent provided in appropriation Acts, to establish such a 
demonstration program by making grants, contracts, price 
supports, and cooperative agreements pursuant to this Act or 
any combination thereof for the establishment of municipal 
waste reprocessing demonstration facilities. For the purpose of 
this section municipal waste shall include but not be limited 
to municipal solid waste, sewage sludge, and other municipal 
organic wastes.
    [(2) The aggregate amount of funds available for grants, 
contracts, price supports, and cooperative agreements for 
municipal waste reprocessing demonstration facilities shall not 
exceed $20,000,000 in the fiscal year ending September 30, 
1978.
    [(3) For purposes of this section the term ``municipal'' 
shall include any city, town, borough, county, parish, 
district, or other public body created by or pursuant to State 
law.
    [(4) Municipal was reprocessing demonstration facilities 
established under this section shall be owned or operated (or 
both owned and operated) by the municipality and shall involve 
the recovery of energy or energy intensive products. Such 
facilities may be established by any public or private entity, 
by contract or otherwise, as may be determined by the local 
government which will own or operate (or both own and operate) 
such facilities and to which financial support is provided. The 
Federal share for any such facility to which this section 
applies shall not exceed 75 per centum of the cost of such 
facility, and not more than $40,000,000 in Federal funds under 
this section may be used for the construction of any one 
facility.
    [(5) The Administrator shall promulgate such regulations as 
he deems necessary, pursuant to section 7(a)(4) and section 
7(c) (1) and (6) of this Act, for purposes of establishing a 
price support program for revenue producing products of 
municipal waste reprocessing demonstration facilities.
    [(c)(1) The Administrator shall consult with the 
Environmental Protection Agency to assure that the provisions 
of section 8004 of the Resource Conservation and Recovery Act 
of 1976 (Public Law 94-580) are applied in carrying out this 
section.
    [(2) Any energy-related research, development, or 
demonstration project for the conversion (including 
bioconversion) of municipal waste carried out by the Energy 
Research and Development Administration pursuant to this or any 
other Act shall be administered in accordance with the May 7, 
1976, Interagency Agreement between the Environmental 
Protection Agency and the Energy Research and Development 
Administration on the development of energy from solid wastes; 
and specifically, in accordance with such
Agreement (A) for those energy-related projects of mutual 
interest, planning will be conducted jointly by the 
Environmental Protection Agency and the Energy Research and 
Development Administration, following which project 
responsibility will be assigned to one agency; (B) energy-
related aspects of projects for recovery of fuels or energy 
intensive products from municipal waste as defined in this 
section shall be the responsibility of the Energy Research and 
Development Administration including energy-related economic 
and institutional aspects; and (C) the Environmental Protection 
Agency shall retain responsibility for the environmental and 
other economic and institutional aspects of solid waste 
projects and for assurance that such projects are consistent 
with any applicable suggested guidelines published pursuant to 
section 1008 of the Resource Conservation and Recovery Act of 
1976 (Public Law 94-580), and any applicable State or regional 
waste management plan.
    [(d)(1) The Administrator shall establish such guidelines 
as he deems necessary for purposes of obtaining pertinent 
information from municipalities receiving funding under this 
section. These guidelines shall include but not be limited to 
methods of assessment and evaluation of projects authorized 
under this section. Such assessments and evaluations shall be 
presented by the Administrator to the House Committee on 
Science, Space, and Technology and the Senate Committee on 
Energy and Natural Resources upon the request of either such 
committee.
    [(2) The Administrator shall annually submit a report to 
the Congress concerning the actions taken or not taken by the 
Administrator under this section during the preceding fiscal 
year, and including but not limited to:
          [(A) a discussion of the status of each demonstration 
        facility and related facilities financed under this 
        section, including progress made in the development of 
        such facilities, and the expected or actual production 
        from each such facility including byproduct production 
        therefrom, and the distribution of such products and 
        byproducts,
          [(B) a statement of the financial condition of each 
        such demonstration facility,
          [(C) data concerning the environmental, community, 
        and health and safety impacts of each such facility and 
        the actions taken or planned to prevent or mitigate 
        such impacts,
          (D) the administrative and other costs incurred by 
        the Administrator and other Federal agencies in 
        carrying out this program, and (E) such other data as 
        may be helpful in keeping Congress and the public fully 
        and currently informed about the program authorized by 
        this section.
    [(3) The annual reports required by this subsection shall 
be a part of the annual report required by section 15 of this 
Act, except that the matters required to be reported by this 
subsection shall be clearly set out and identified in such 
annual reports. Such reports shall be transmitted to the 
Speaker of the House of Representatives and the House Committee 
on Science, Space, and Technology and to the President of the 
Senate and the Senate Committee on Energy and Natural 
Resources.
    [(e) No part of the program authorized by this section 
shall be transferred to any other agency or authority, except 
pursuant to Act of Congress enacted after the date of the 
enactment of this section.
    [(f) Nothing in this section shall be construed as 
abrogating any obligations of any municipality receiving 
financial assistance pursuant to this section to comply with 
Federal and State environmental, land use, water, and health 
and safety laws and regulations or to obtain applicable Federal 
and State permits, licenses, and certificates.
                              ----------                              

   STEVENSON-WYDLER TECHNOLOGY INNOVATION ACT OF 1980--PL 96-480 AS 
AMENDED (15 U.S.C. 3712)

           *       *       *       *       *       *       *

SEC. 20. PERSONNEL EXCHANGES.

    The Secretary, the Secretary of Energy, and the Director of 
the National Science Foundation, [and the National Science 
Foundation] jointly, shall establish a program to foster the 
exchange of scientific and technical personnel among academia, 
industry, and Federal laboratories. Such program shall include 
both (1) federally supported exchanges and (2) efforts to 
stimulate exchanges without Federal funding.
                              ----------                              

   AGRICULTURAL RISK PROTECTION ACT OF 2000--PUBLIC LAW 106-224, AS 
AMENDED

           *       *       *       *       *       *       *

TITLE III--BIOMASS RESEARCH AND DEVELOPMENT ACT OF 2000

           *       *       *       *       *       *       *

[SEC. 311. 7 U.S.C. 7624 TERMINATION OF AUTHORITY.

    [The authority provided under this title shall terminate on 
September 30, 2007.]
                              ----------                              

  PUBLIC UTILITY HOLDING COMPANY ACT OF 1935--ACT OF AUGUST 26, 1935, 
              CHAPTER 687, AS AMENDED (15 U.S.C. 79-79Z-6)

              [PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

[AN ACT To provide for control and regulation of public-utility holding 
                   companies, and for other purposes

    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled, That 
this Act may be cited as the ``Public Utility Act of 1935.''

         [TITLE I--CONTROL OF PUBLIC-UTILITY HOLDING COMPANIES

[NECESSITY FOR CONTROL OF HOLDING COMPANIES

    [Section 1. (a) Public-utility holding companies and their 
subsidiary companies are affected with a national public 
interest in that, among other things, (1) their securities are 
widely marketed and distributed by means of the mails and 
instrumentalities of interstate commerce and are sold to a 
large number of investors in different States; (2) their 
service, sales, construction, and other contracts and 
arrangements are often made and performed by means of the mails 
and instrumentalities of interstate commerce; (3) their 
subsidiary public-utility companies often sell and transport 
gas and electric energy by the use of means and 
instrumentalities of interstate commerce; (4) their practices 
in respect of and control over subsidiary companies often 
materially affect the interstate commerce in which those 
companies engage; (5) their activities extending over many 
States are not susceptible of effective control by any State 
and make difficult, if not impossible, effective State 
regulation of public-utility companies.
    [(b) Upon the basis of facts disclosed by the reports of 
the Federal Trade Commission made pursuant to S. Res. 83 
(Seventieth Congress, first session), the reports of the 
Committee on Interstate and Foreign Commerce, House of 
Representatives, made pursuant to H. Res. 59 (Seventy-second 
Congress, first session) and H.J. Res. 572 (Seventy-second 
Congress, second session) and otherwise disclosed and 
ascertained, it is hereby declared that the national public 
interest, the interest of investors in the securities of 
holding companies and their subsidiary companies and 
affiliates, and the interest of consumers of electric energy 
and natural and manufactured gas, are or may be adversely 
affected--
          [(1) when such investors cannot obtain the 
        information necessary to appraise the financial 
        position or earning power of the issuers, because of 
        the absence of uniform standard accounts; when such 
        securities are issued without the approval or consent 
        of the States having jurisdiction over subsidiary 
        public-utility companies; when such securities are 
        issued upon the basis of fictitious or unsound asset 
        values having no fair relation to the sums invested in 
        or the earning capacity of the properties and upon the 
        basis of paper profits from intercompany transactions, 
        or in anticipation of excessive revenues from 
        subsidiary public-utility companies; when such 
        securities are issued by a subsidiary public-utility 
        company under circumstances which subject such company 
        to the burden of supporting an overcapitalized 
        structure and tend to prevent voluntary rate 
        reductions;
          [(2) when subsidiary public-utility companies are 
        subjected to excessive charges for services, 
        construction work, equipment, and materials, or enter 
        into transactions in which evils result from an absence 
        of arm's-length bargaining or from restraint of free 
        and independent competition; when service, management, 
        construction, and other contracts involve the 
        allocation of charges among subsidiary public-utility 
        companies in different States so as to present problems 
        of regulation which cannot be dealt with effectively by 
        the States;
          [(3) when control of subsidiary public-utility 
        companies affects the accounting practices and rate, 
        dividend, and other policies of such companies so as to 
        complicate and obstruct State regulation of such 
        companies, or when control of such companies is exerted 
        through disproportionately small investment;
          [(4) when the growth and extension of holding 
        companies bears no relation to economy of management 
        and operation or the integration and coordination of 
        related operating properties; or
          [(5) when in any other respect there is lack of 
        economy of management and operation of public-utility 
        companies or lack of efficiency and adequacy of service 
        rendered by such companies, or lack of effective public 
        regulation, or lack of economies in the raising of 
        capital.
    [(c) When abuses of the character above enumerated become 
persistent and widespread the holding company becomes an agency 
which, unless regulated, is injurious to investors, consumers, 
and the general public; and it is hereby declared to be the 
policy of this title, in accordance with which policy all the 
provisions of this title shall be interpreted, to meet the 
problems and eliminate the evils as enumerated in this section, 
connected with public-utility holding companies which are 
engaged in interstate commerce or in activities which directly 
affect or burden interstate commerce; and for the purpose of 
effectuating such policy to compel the simplification of 
public-utility holding-company systems and the elimination 
therefrom of properties detrimental to the proper functioning 
of such systems, and to provide as soon as practicable for the 
elimination of public-utility holding companies except as 
otherwise expressly provided in this title.

[DEFINITIONS

    [Sec. 2. (a) When used in this title, unless the context 
otherwise requires--
          [(1) ``Person'' means an individual or company.
          [(2) ``Company'' means a corporation, a partnership, 
        an association, a joint-stock company, a business 
        trust, or an organized group of persons, whether 
        incorporated or not; or any receiver, trustee, or other 
        liquidating agent of any of the foregoing in his 
        capacity as such.
          [(3) ``Electric utility company'' means any company 
        which owns or operates facilities used for the 
        generation, transmission, or distribution of electric 
        energy for sale, other than sale to tenants or 
        employees of the company operating such facilities for 
        their own use and not for resale. The Commission, upon 
        application, shall by order declare a company operating 
        any such facilities not to be an electric utility 
        company if the Commission finds that (A) such company 
        is primarily engaged in one or more businesses other 
        than the business of an electric utility company, and 
        by reason of the small amount of electric energy sold 
        by such company it is not necessary in the public 
        interest or for the protection of investors or 
        consumers that such company be considered an electric 
        utility company for the purposes of this title, or (B) 
        such company is one operating within a single State, 
        and substantially all of its outstanding securities are 
        owned directly or indirectly by another company to 
        which such operating company sells or furnishes 
        electric energy which it generates; such other company 
        uses and does not resell such electric energy, is 
        engaged primarily in manufacturing (other than the 
        manufacturing of electric energy or gas) and is not 
        controlled by any other company; and by reason of the 
        small amount of electric energy sold or furnished by 
        such operating company to other persons it is not 
        necessary in the public interest or for the protection 
        of investors or consumers that it be considered an 
        electric utility company for the purposes of this 
        title. The filing of an application hereunder in good 
        faith shall exempt such company (and the owner of the 
        facilities operated by such company) from the 
        application of this paragraph until the Commission has 
        acted upon such application. As a condition to the 
        entry of any such order, and as a part thereof, the 
        Commission may require application to be made 
        periodically for a renewal of such order, and may 
        require the filing of such periodic or special reports 
        regarding the business of the company as the Commission 
        may find necessary or appropriate to insure that such 
        company continues to be entitled to such exemption 
        during the period for which such order is effective. 
        The Commission, upon its own motion or upon 
        application, shall revoke such order whenever it finds 
        that the conditions specified in clause (A) or (B) are 
        not satisfied in the case of such company. Any action 
        of the Commission under the preceding sentence shall be 
        by order. Application under this paragraph may be made 
        by the company in respect of which the order is to be 
        issued or by the owner of the facilities operated by 
        such company. Any order issued under this paragraph 
        shall apply equally to such company and such owner. The 
        Commission may by rules or regulations conditionally or 
        unconditionally provide that any specified class or 
        classes of companies which it determines to satisfy the 
        conditions specified in clause (A) or (B), and the 
        owners of the facilities operated by such companies, 
        shall not be deemed electric utility companies within 
        the meaning of this paragraph.
          [(4) ``Gas utility company'' means any company which 
        owns operates facilities used for the distribution at 
        retail (other than distribution only in enclosed 
        portable containers, or distribution to tenants or 
        employees of the company operating such facilities for 
        their own use and not for resale) of natural or 
        manufactured gas for heat, light, or power. The 
        Commission, upon application, shall by order declare a 
        company operating any such facilities not to be a gas 
        utility company if the Commission finds that (A) such 
        company is primarily engaged in one or more businesses 
        other than the business of a gas utility company, and 
        (B) by reason of the small amount of natural or 
        manufactured gas distributed at retail by such company 
        it is not necessary in the public interest or for the 
        protection of investors or consumers that such company 
        be considered a gas utility company for the purposes of 
        this title. The filing of an application hereunder in 
        good faith shall exempt such company (and the owner of 
        the facilities operated by such company) from the 
        application of this paragraph until the Commission has 
        acted upon such application. As a condition to the 
        entry of any such order, and as a part thereof, the 
        Commission may require application to be made 
        periodically for a renewal of such order, and may 
        require the filing of such periodic or special reports 
        regarding the business of the company as the Commission 
        may find necessary or appropriate to insure that such 
        company continues to be entitled to such exemption 
        during the period for which such order is effective. 
        The Commission, upon its own motion or upon 
        application, shall revoke such order whenever it finds 
        that the conditions specified in clauses (A) and (B) 
        are not satisfied in the case of such company. Any 
        action of the Commission under the preceding sentence 
        shall be by order. Application under this paragraph may 
        be made by the company in respect of which the order is 
        to be issued or by the owner of the facilities operated 
        by such company. Any order issued under this paragraph 
        shall apply equally to such company and such owner. The 
        Commission may by rules or regulations conditionally or 
        unconditionally provide that any specified class or 
        classes of companies which it determines to satisfy the 
        conditions specified in clauses (A) and (B), and the 
        owners of the facilities operated by such companies, 
        shall not be deemed gas utility companies within the 
        meaning of this paragraph.
          [(5) ``Public-utility company'' means an electric 
        utility company or a gas utility company.
          [(6) ``Commission'' means the Securities and Exchange 
        Commission.
          [(7) ``Holding company'' means--
                  [(A) any company which directly or indirectly 
                owns, controls, or holds with power to vote, 10 
                per centum or more of the outstanding voting 
                securities of a public-utility company or of a 
                company which is a holding company by virtue of 
                this clause or clause (B), unless the 
                Commission, as hereinafter provided, by order 
                declares such company not to be a holding 
                company; and
                  [(B) any person which the Commission 
                determines, after notice and opportunity for 
                hearing, directly or indirectly to exercise 
                (either alone or pursuant to an arrangement or 
                understanding with one or more other persons) 
                such a controlling influence over the 
                management or policies of any public utility or 
                holding company as to make it necessary or 
                appropriate in the public interest or for the 
                protection of investors or consumers that such 
                person be subject to the obligations, duties, 
                and liabilities imposed in this title upon 
                holding companies.
[The Commission, upon application, shall by order declare that 
a company is not a holding company under clause (A) if the 
Commissionfinds that the applicant (i) does not, either alone 
or pursuant to an arrangement or understanding with one or more other 
persons, directly or indirectly control a public-utility or holding 
company either through one or more intermediary persons or by any means 
or device whatsoever, (ii) is not an intermediary company through which 
such control is exercised, and (iii) does not, directly or indirectly, 
exercise (either alone or pursuant to an arrangement or understanding 
with one or more other persons) such a controlling influence over the 
management or policies of any public-utility or holding company as to 
make it necessary or appropriate in the public interest or for the 
protection of investors or consumers that the applicant be subject to 
the obligations, duties, and liabilities imposed in this title upon 
holding companies. The filing of an application hereunder in good faith 
by a company other than a registered holding company shall exempt the 
applicant from any obligation, duty, or liability imposed in this title 
upon the applicant as a holding company, until the Commission has acted 
upon such application. Within a reasonable time after the receipt of 
any application hereunder, the Commission shall enter an order 
granting, or, after notice and opportunity for hearing, denying or 
otherwise disposing of, such application. As a condition to the entry 
of any order granting such application and as a part of any such order, 
the Commission may require the applicant to apply periodically for a 
renewal of such order and to do or refrain from doing such acts or 
things, in respect of exercise of voting rights, control over proxies, 
designation of officers and directors, existence of interlocking 
officers, directors and other relationships, and submission of periodic 
or special reports regarding affiliations or intercorporate 
relationships of the applicant, as the Commission may find necessary or 
appropriate to ensure that in the case of the applicant the conditions 
specified in clauses (i), (ii), and (iii) are satisfied during the 
period for which such order is effective. The Commission, upon its own 
motion or upon application of the company affected, shall revoke the 
order declaring such company not to be a holding company whenever in 
its judgment any condition specified in clause (i), (ii), or (iii) is 
not satisfied in the case of such company, or modify the terms of such 
order whenever in its judgment such modification is necessary to ensure 
that in the case of such company the conditions specified in clauses 
(i), (ii), and (iii) are satisfied during the period for which such 
order is effective. Any action of the Commission under the preceding 
sentence shall be by order.
          [(8) ``Subsidiary company'' of a specified holding 
        company means--
                  [(A) any company 10 per centum or more of the 
                outstanding voting securities of which are 
                directly or indirectly owned, controlled, or 
                held with power to vote, by such holding 
                company (or by a company that is a subsidiary 
                company of such holding company by virtue of 
                this clause or clause (B)), unless the 
                Commission, as hereinafter provided, by order 
                declares such company not to be a subsidiary 
                company of such holding company; and
                  [(B) any person the management or policies of 
                which the Commission, after notice and 
                opportunity for hearing, determines to be 
                subject to a controlling influence, directly or 
                indirectly, by such holding company (either 
                alone or pursuant to an arrangement or 
                understanding with one or more other persons) 
                so as to make it necessary or appropriate in 
                the public interest or for the protection of 
                investors or consumers that such person be 
                subject to the obligations, duties, and 
                liabilities imposed in this title upon 
                subsidiary companies of holding companies.
[The Commission, upon application, shall by order declare that 
a company is not a subsidiary company of a specified holding 
company under clause (A) if the Commission finds that (i) the 
applicant is not controlled, directly or indirectly, by such 
holding company (either alone or pursuant to an arrangement or 
understanding with one or more other persons) either through 
one or more intermediary persons or by any means or device 
whatsoever, (ii) the applicant is not an intermediary company 
through which such control of another company is exercised, and 
(iii) the management or policies of the applicant are not 
subject to a controlling influence, directly or indirectly, by 
such holding company (either alone or pursuant to an 
arrangement or understanding with one or more other persons) so 
as to make it necessary or appropriate in the public interest 
or for the protection of investors or consumers that the 
applicant be subject to the obligations, duties, and 
liabilities imposed in this title upon subsidiary companies of 
holding companies. The filing of an application hereunder in 
good faith shall exempt the applicant from any obligation, 
duty, or liability imposed in this title upon the applicant as 
a subsidiary company of such specified holding company until 
the Commission has acted upon such application. Within a 
reasonable time after the receipt of any application hereunder, 
the Commission shall enter an order granting, or, after notice 
and opportunity for hearing, denying or otherwise disposing of, 
such application. As a condition to the entry of, and as a part 
of, any order granting such application, the Commission may 
require the applicant to apply periodically for a renewal of 
such order and to file such periodic or special reports 
regarding the affiliations or intercorporate relationships of 
the applicant as the Commission may find necessary or 
appropriate to enable it to determine whether in the case of 
the applicant the conditions specified in clauses (i), (ii), 
and (iii) are satisfied during the period for which such order 
is effective. The Commission, upon its own motion or upon 
application, shall revoke the order declaring such company not 
to be a subsidiary company whenever in its judgment any 
condition specified in clause (i), (ii), or (iii) is not 
satisfied in the case of such company, or modify the terms of 
such order whenever in its judgment such modification is 
necessary to ensure that in the case of such company the 
conditions specified in clauses (i), (ii), and (iii) are 
satisfied during the period for which such order is effective. 
Any action of the Commission under the preceding sentence shall 
be by order. Any application under this paragraph may be made 
by the holding company or the company in respect of which the 
order is to be entered, but as used in this paragraph the term 
applicant'' means only the company in respect of which the 
order is to be entered.
          [(9) ``Holding-company system'' means any holding 
        company, together with all its subsidiary companies, 
        and all mutual service companies (as defined in 
        paragraph (13) of this subsection) of which such 
        holding company or any subsidiary company thereof is a 
        member company (as defined in paragraph (14) of this 
        subsection).
          [(10) ``Associate company'' of a company means any 
        company in the same holding-company system with such 
        company.
          [(11) ``Affiliate'' of a specified company means--
                  [(A) any person that directly or indirectly 
                owns, controls, or holds with power to vote, 5 
                per centum or more of the outstanding voting 
                securities of such specified company;
                  [(B) any company 5 per centum or more of 
                whose outstanding voting securities are owned, 
                controlled, or held with power to vote, 
                directly or indirectly, by such specified 
                company;
                  [(C) any individual who is an officer or 
                director of such specified company, or of any 
                company which is an affiliate thereof under 
                clause (A) of this paragraph; and
                  [(D) any person or class of persons that the 
                Commission determines, after appropriate notice 
                and opportunity for hearing, to stand in such 
                relation to such specified company that there 
                is liable to be such an absence of arm's length 
                bargaining in transactions between them as to 
                make it necessary or appropriate in the public 
                interest or for the protection of investors or 
                consumers that such person be subject to the 
                obligations, duties, and liabilities imposed in 
                this title upon affiliates of a company.
          [(12) ``Registered holding company'' means a person 
        whose registration is in effect under section 5.
          [(13) ``Mutual service company'' means a company 
        approved mutual service company under section 13.
          [(14) ``Member company'' means a company which is a 
        member of an association or group of companies mutually 
        served by a mutual service company.
          [(15) ``Director'' means any director of a 
        corporation or any individual who performs similar 
        functions in respect of any company.
          [(16) ``Security'' means any note, draft, stock, 
        treasury stock, bond, debenture, certificate of 
        interest or participation in any profit-sharing 
        agreement or in any oil, gas, other mineral royalty or 
        lease, any collateral-trust certificate, 
        preorganization certificate or subscription, 
        transferable share, investment contract, voting-trust 
        certificate, certificate of deposit for a security, 
        receiver's or trustee's certificate, or, in general, 
        any instrument commonly known as a ``security''; or any 
        certificate of interest or participation in, temporary 
        or interim certificate for, receipt for, guaranty of, 
        assumption of liability on, or warrant or right to 
        subscribe to or purchase, any of the foregoing.
          [(17) ``Voting security'' means any security 
        presently entitling the owner or holder thereof to vote 
        in the direction or management of the affairs of a 
        company, or any security issued under or pursuant to 
        any trust, agreement, or arrangement whereby a trustee 
        or trustees or agent or agents for the owner or holder 
        of such security are presently entitled to vote in the 
        direction or management of the affairs of a company; 
        and a specified per centum of the outstanding voting 
        securities of a company means such amount of the 
        outstanding voting securities of such company as 
        entitles the holder or holders thereof to cast said 
        specified per centum of the aggregate votes which the 
        holders of all the outstanding voting securities of 
        such company are entitled to cast in the direction or 
        management of the affairs of such company.
          [(18) ``Utility assets'' means the facilities, in 
        place, of any electric utility company or gas utility 
        company for the production, transmission, 
        transportation, or distribution of electric energy or 
        natural or manufactured gas.
          [(19) ``Service contract'' means any contract, 
        agreement, or understanding whereby a person undertakes 
        to sell or furnish, for a charge, any managerial, 
        financial, legal, engineering, purchasing, marketing, 
        auditing, statistical, advertising, publicity, tax 
        research, or any other service, information, or data.
          [(20) ``Sales contract'' means any contract, 
        agreement, or understanding whereby a person undertakes 
        to sell, lease, or furnish, for a charge, any goods, 
        equipment, materials, supplies, appliances, or similar 
        property. As used in this paragraph the term 
        ``property'' does not include electric energy or 
        natural or manufactured gas.
          [(21) ``Construction contract'' means any contract, 
        agreement, or understanding for the construction, 
        extension, improvement, maintenance, or repair of the 
        facilities or any park thereof of a company for a 
        charge.
          [(22) ``Buy'', ``acquire'', ``acquisition'', or 
        ``purchase'' includes any purchase, acquisition by 
        lease, exchange, merger, consolidation, or other 
        acquisition.
          [(23) ``Sale'' or ``sell'' includes any sale, 
        disposition by lease, exchange or pledge, or other 
        disposition.
          [(24) ``State'' means any State of the United States 
        or the District of Columbia.
          [(25) ``United States'', when used in a geographical 
        sense, means the States.
          [(26) ``State commission'' means any commission, 
        board, agency, or officer, by whatever name designated, 
        of a State, municipality, or other political 
        subdivision of a State which under the law of such 
        State has jurisdiction to regulate public utility 
        companies.
          [(27) ``State securities commission'' means any 
        commission, board, agency, or officer, by whatever name 
        designated, other than a Statecommission as defined in 
paragraph (26) of this subsection, which under the law of a State has 
jurisdiction to regulate, approve, or control the issue or sale of a 
security by a company.
          [(28) ``Interstate commerce'' means trade, commerce, 
        transportation, transmission, or communication among 
        the several States or between any State and any place 
        outside thereof.
          [(29) ``Integrated public-utility system'' means--
                  [(A) As applied to electric utility 
                companies, a system consisting of one or more 
                units of generating plants and/ or transmission 
                lines and/or distributing facilities, whose 
                utility assets, whether owned by one or more 
                electric utility companies, are physically 
                interconnected or capable of physical 
                interconnection and which under normal 
                conditions may be economically operated as a 
                single interconnected and coordinated system 
                confined in its operations to a single area or 
                region, in one or more States, not so large as 
                to impair (considering the state of the art and 
                the area or region affected) the advantages of 
                localized management, efficient operation, and 
                the effectiveness of regulation; and
                  [(B) As applied to gas utility companies, a 
                system consisting of one or more gas utility 
                companies which are so located and related that 
                substantial economies may be effectuated by 
                being operated as a single coordinated system 
                confined in its operations to a single area or 
                region, in one or more States, not so large as 
                to impair (considering the state of the art and 
                the area or region affected) the advantages of 
                localized management, efficient operation, and 
                the effectiveness of regulation; Provided, That 
                gas utility companies deriving natural gas from 
                a common source of supply may be deemed to be 
                included in a single area or region.
    [(b) No person shall be deemed to be a holding company 
under clause (B) of paragraph (7) of subsection (a), or a 
subsidiary company under clause (B) of paragraph (8) of such 
subsection, or an affiliate under clause (D) of paragraph (11) 
of such subsection, unless the Commission, after appropriate 
notice and opportunity for hearing, has issued an order 
declaring such person to be a holding company, a subsidiary 
company, or an affiliate, or declaring a class of which such 
person is a member to be affiliates. Such an order shall not 
become effective for at least thirty days after the mailing of 
a copy thereof to the person thereby declared to be a holding 
company, subsidiary company, or affiliate; or, in the case of 
determination of affiliates by classes, until at least thirty 
days after appropriate publication thereof in such manner as 
the Commission shall determine. Whenever the Commission, on its 
own motion or upon application by the person declared to be a 
holding company, subsidiary company, or affiliate, finds that 
the circumstances which gave rise to the issuance of any such 
order no longer exist, the Commission shall by order revoke 
such order.
    [(c) No provision in this title shall apply to, or be 
deemed to include, the United States, a State, or any political 
subdivision of a State, or any agency, authority, or 
instrumentality of any one or more of the foregoing, or any 
corporation which is wholly owned directly or indirectly by any 
one or more of the foregoing, or any officer, agent, or 
employee of any of the foregoing acting as such in the course 
of his official duty, unless such provision makes specific 
reference thereto.

[POWER TO MAKE PARTICULAR EXEMPTIONS REGARDING HOLDING COMPANIES, 
                    SUBSIDIARY COMPANIES, AND AFFILIATES

    [Sec. 3. (a) The Commission, by rules and regulations upon 
its own motion, or by order upon application, shall exempt any 
holding company, and every subsidiary company thereof as such, 
from any provision or provisions of this title, unless and 
except insofar as it finds the exemption detrimental to the 
public interest or the interest of investors or consumers, if--
          [(1) such holding company, and every subsidiary 
        company thereof which is a public-utility company from 
        which such holding company derives, directly or 
        indirectly, any material part of its income, are 
        predominantly intrastate in character and carry on 
        their business substantially in a single State in which 
        such holding company and every such subsidiary company 
        thereof are organized;
          [(2) such holding company is predominantly a public-
        utility company whose operations as such do not extend 
        beyond the State in which it is organized and States 
        contiguous thereto;
          [(3) such holding company is only incidentally a 
        holding company, being primarily engaged or interested 
        in one or more businesses other than the business of a 
        public-utility company and (A) not deriving, directly 
        or indirectly, any material part of its income from any 
        one or more subsidiary companies, the principal 
        business of which is that of a public-utility company, 
        or (B) deriving a material part of its income from any 
        one or more such subsidiary companies, if substantially 
        all the outstanding securities of such companies are 
        owned, directly or indirectly, by such holding company;
          [(4) such holding company is temporarily a holding 
        company solely by reason of the acquisition of 
        securities for purposes of liquidation or distribution 
        in connection with a bona fide debt previously 
        contracted or in connection with a bona fide 
        arrangement for the underwriting or distribution of 
        securities; or
          [(5) such holding company is not, and derives no 
        material part of its income, directly or indirectly, 
        from any one or more subsidiary companies which are, a 
        company or companies the principal business of which 
        within the United States is that of public-utility 
        company.
    [(b) The Commission, by rules and regulations upon its own 
motion, or by order upon application, shall exempt any 
subsidiary company, as such, of a holding company from any 
provision or provisions of this title, the application of which 
to such subsidiary company the Commission finds is not 
necessary in the public interest or for the protection of 
investors, if such subsidiary company derives no material part 
of its income, directly or indirectly, from sources within the 
United States, and neither it nor any of its subsidiary 
companies is a public-utility company operating in the United 
States.
    [(c) Within a reasonable time after the receipt of an 
application for exemption under subsection (a) or (b), the 
Commission shall enter an order granting, or, after notice and 
opportunity for hearing, denying or otherwise disposing of such 
application. The filing of an application in good faith under 
subsection (a) by a person other than a registered holding 
company shall exempt the applicant from any obligation, duty, 
or liability imposed in this title upon the applicant as a 
holding company until the Commission has acted upon such 
application. The filing of an application in good faith under 
subsection (b) shall exempt the applicant from any obligation, 
duty, or liability imposed in this title upon the applicant as 
a subsidiary company until the Commission has acted upon such 
application. Whenever the Commission, on its own motion, or 
upon application by the holding company or any subsidiary 
company thereof exempted by any order issued under subsection 
(a), or by the subsidiary company exempted by any order issued 
under subsection (b), finds that the circumstances which gave 
rise to the issuance of such order no longer exist, the 
Commission shall by order revoke such order.
    [(d) The Commission may, by rules and regulations, 
conditionally or unconditionally exempt any specified class or 
classes of persons from the obligations, duties, or liabilities 
imposed upon such persons as subsidiary companies or affiliates 
under any provision or provisions of this title, and may 
provide within the extent of any such exemption that such 
specified class or classes of persons shall not be deemed 
subsidiary companies or affiliates within the meaning of any 
such provision or provisions, if and to the extent that it 
deems the exemption necessary or appropriate in the public 
interest or for the protection of investors or consumers and 
not contrary to the purposes of this title.

TRANSACTIONS BY UNREGISTERED HOLDING COMPANIES

    [Sec. 4. (a) After December 1, 1935, unless a holding 
company is registered under section 5, it shall be unlawful for 
such holding company, directly or indirectly--
         [(1) to sell, transport, transmit, or distribute, or 
        own or operate any utility assets for the 
        transportation, transmission, or distribution of, 
        natural or manufactured gas or electric energy in 
        interstate commerce;
         [(2) by use of the mails or any means or 
        instrumentality of interstate commerce, to negotiate, 
        enter into, or take any step in the performance of, any 
        service, sales, or construction contract undertaking to 
        perform services or construction work for, or sell 
        goods to, any public-utility company or holding 
        company;
         [(3) to distribute or make any public offering for 
        sale or exchange of any security of such holding 
        company, any subsidiary company or affiliate of such 
        holding company, any public-utility company, or any 
        holding company, by use of the mails or any means or 
        instrumentality of interstate commerce, or to sell any 
        such security having reason to believe that such 
        security, by use of the mails or any means or 
        instrumentality of interstate commerce, will be 
        distributed or made the subject of a public offering;
         [(4) by use of the mails or any means or 
        instrumentality of interstate commerce, to acquire or 
        negotiate for the acquisition of any security or 
        utility assets of any subsidiary company or affiliate 
        of such holding company, any public-utility company, or 
        any holding company;
         [(5) to engage in any business in interstate commerce; 
        or
         [(6) to own, control, or hold with power to vote, any 
        security of any subsidiary company thereof that does 
        any of the acts enumerated in paragraphs (1) to (5), 
        inclusive, of this subsection.
    [(b) Every holding company which has outstanding any 
security any of which, by use of the mails or any means or 
instrumentality of interstate commerce, has been distributed or 
made the subject of a public offering subsequent to January 1, 
1925, and any of which security is owned or held on October 1, 
1935 (or, if such company is not a holding company on that 
date, on the date such company becomes a holding company) by 
persons not resident in the State in which such holding company 
is organized, shall register under section 5 on or before 
December 1, 1935 or the thirtieth day after such company 
becomes a holding company, whichever date is later.

REGISTRATION OF HOLDING COMPANIES

    [Sec. 5. (a) On or at any time after October 1, 1935, any 
holding company or any person purposing to become a holding 
company may register by filing with the Commission a 
notification of registration, in such form as the Commission 
may by rules and regulations prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors or consumers. A person shall be deemed to be 
registered upon receipt by the Commission of such notification 
of registration.
    [(b) It shall be the duty of every registered holding 
company to file with the Commission, within such reasonable 
time after registration as the Commission shall fix by rules 
and regulations or order, a registration statement in such form 
as the Commission shall by rules and regulations or order 
prescribe as necessary or appropriate in the public interest or 
for the protection of investors or consumers. Such registration 
statement shall include--
         [(1) such copies of the charter or articles of 
        incorporation, partnership, or agreement, with all 
        amendments thereto, and the bylaws, trust indentures, 
        mortgages, underwriting arrangements, voting-trust 
        agreements, and similar documents, by whatever name 
        known, of or relating to the registrant or any of its 
        associate companies as the Commission may by rules and 
        regulations or order prescribe as necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers;
         [(2) such information in such form and in such detail 
        relating to, and copies of such documents of or 
        relating to, the registrant and its associate companies 
        as the Commission may by rules and regulations or 
orderprescribe as necessary or appropriate in the public interest or 
for the protection of investors or consumers in respect of--
                 [(A) the organization and financial structure 
                of such companies and the nature of their 
                business;
                 [(B) the terms, position, rights, and 
                privileges of the different classes of their 
                securities outstanding;
                 [(C) the terms and underwriting arrangements 
                under which their securities, during not more 
                than the five preceding years, have been 
                offered to the public or otherwise disposed of 
                and the relations of underwriters to, and their 
                interest in, such companies;
                 [(D) the directors and officers of such 
                companies, their remuneration, their interest 
                in the securities of, their material contracts 
                with, and their borrowings from, any of such 
                companies;
                 [(E) bonus and profit-sharing arrangements;
                 [(F) material contracts, not made in the 
                ordinary course of business, and service, 
                sales, and construction contracts;
                 [(G) options in respect of securities;
                 [(H) balance sheets for not more than the five 
                preceding fiscal years certified, if required 
                by the rules and regulations of the Commission, 
                by an independent public accountant;
                 [(I) profit and loss statements for not more 
                than the five preceding fiscal years, 
                certified, if required by the rules and 
                regulations of the Commission, by an 
                independent public accountant;
         [(3) such further information or documents regarding 
        the registrant or its associate companies or the 
        relations between them as the Commission may by rules 
        and regulations or order prescribe as necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers.
    [(c) The Commission by such rules and regulations or order 
as it deems necessary or appropriate in the public interest or 
for the protection of investors or consumers, may permit a 
registrant to file a preliminary registration statement without 
complying with the provisions of subsection (b); but every 
registrant shall file a complete registration statement with 
the Commission within such reasonable period of time as the 
Commission shall fix by rules and regulations or order, but not 
later than one year after the date of registration.
    [(d) Whenever the Commission, upon application, finds that 
a registered holding company has ceased to be a holding 
company, it shall so declare by order and upon the taking 
effect of such order the registration of such company shall, 
upon such terms and conditions as the Commission finds and in 
such order prescribes as necessary for the protection of 
investors, cease to be in effect. The denial of any such 
application by the Commission shall be by order.

LAWFUL SECURITY TRANSACTIONS BY REGISTERED HOLDING AND SUBSIDIARY 
                    COMPANIES

    [Sec. 6. (a) Except in accordance with a declaration 
effective under section 7 and with the order under such section 
permitting such declaration to become effective, it shall be 
unlawful for any registered holding company or subsidiary 
company thereof, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, directly 
or indirectly (1) to issue or sell any security of such 
company; or (2) to exercise any privilege or right to alter the 
priorities, preferences, voting power, or other rights of the 
holders of an outstanding security of such company.
    [(b) The provisions of subsection (a) shall not apply to 
the issue, renewal, or guaranty by a registered holding company 
or subsidiary company thereof of a note or draft (including the 
pledge of any security as collateral therefor) if such note or 
draft (1) is not part of a public offering, (2) matures or is 
renewed for not more than nine months, exclusive of days of 
grace, after the date of such issue, renewal, or guaranty 
thereof, and (3) aggregates (together with all other then 
outstanding notes and drafts of a maturity of nine months or 
less, exclusive of days of grace, as to which such company is 
primarily or secondarily liable) not more than 5 per centum of 
the principal amount and par value of the other securities of 
such company then outstanding, or such greater per centum 
thereof as the Commission upon application may by order 
authorize as necessary or appropriate in the public interest or 
for the protection of investors or consumers. In the case of 
securities having no principal amount or no par value, the 
value for the purposes of this subsection shall be the 
fairmarket value as of the date of issue. The Commission by 
rules and regulations or order, subject to such terms and 
conditions as it deems appropriate in the public interest or 
for the protection of investors or consumers, shall exempt from 
the provisions of subsection (a) the issue or sale of any 
security by any subsidiary company of a registered holding 
company, if the issue and sale of such security are solely for 
the purpose of financing the business of such subsidiary 
company and have been expressly authorized by the State 
commission of the State in which such subsidiary company is 
organized and doing business, or if the issue and sale of such 
security are solely for the purpose of financing the business 
of such subsidiary company when such subsidiary company is not 
a holding company, a public-utility company, an investment 
company, or a fiscal or financing agency of a holding company, 
a public-utility company, or an investment company. The 
provisions of subsection (a) shall not apply to the issue, by a 
registered holding company or subsidiary company thereof, of a 
security issued pursuant to the terms of any security 
outstanding on January 1, 1935, giving the holder of such 
outstanding security the right to convert such outstanding 
security into another security of the same issuer or of another 
person, or giving the right to subscribe to another security of 
the same issuer or another issuer. Within ten days after any 
issue, sale, renewal, or guaranty exempted from the application 
of subsection (a) by or under authority of this subsection, 
such holding company or subsidiary company thereof shall file 
with the Commission a certificate of notification in such form 
and setting forth such of the information required in a 
declaration under section 7 as the Commission may by rules and 
regulations or order prescribe as necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(c) It shall be unlawful, by use of the mails or any means 
or instrumentality of interstate commerce, or otherwise, for 
any registered holding company or any subsidiary company 
thereof, directly or indirectly--
         [(1) to sell or offer for sale or to cause to be sold 
        or offered for sale, from house to house, any security 
        of such holding company; or
         [(2) to cause any officer or employee of any 
        subsidiary company of such holding company to sell or 
        cause to be sold any security of such holding company.
[As used in this subsection the term ``house'' shall not 
include an office used for business purposes.

[DECLARATIONS BY REGISTERED HOLDING AND SUBSIDIARY COMPANIES IN RESPECT 
                    OF SECURITY TRANSACTIONS

    [Sec. 7. (a) A registered holding company or subsidiary 
company thereof may file a declaration with the Commission, 
regarding any of the acts enumerated in subsection (a) of 
section 6, in such form as the Commission may be rules and 
regulations prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers. Such 
declaration shall include--
          [(1) such of the information and documents which are 
        required to be filed in order to register a security 
        under section 7 of the Securities Act of 1933, as 
        amended, as the Commission may by rules and regulations 
        or order prescribe as necessary or appropriate in the 
        public interest or for the protection of investors or 
        consumers; and
          [(2) such additional information, in such form and 
        detail, and such documents regarding the declarant or 
        any associate company thereof, the particular security 
        and compliance with such State laws as may apply to the 
        act in question as the Commission may by rules and 
        regulations or order prescribe as necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers.
    [(b) A declaration filed under this section shall become 
effective within such reasonable period of time after the 
filing thereof as the Commission shall fix by rules and 
regulations or order, unless the Commission prior to the 
expiration of such period shall have issued an order to the 
declarant to show cause why such declaration should become 
effective. Within a reasonable time after an opportunity for 
hearing upon an order to show cause under this subsection, 
unless the declarant shall withdraw its declaration, the 
Commission shall enter an order either permitting such 
declaration to become effective as filed or amended, or 
refusing to permit such declaration to become effective. 
Amendments to a declaration may be made upon such terms and 
conditions as the Commission may prescribe.
    [(c) The Commission shall not permit a declaration 
regarding the issue or sale of a security to become effective 
unless it finds that--
          [(1) such security is (A) a common stock having a par 
        value and being without preference as to dividends or 
        distribution over, and having at least equal voting 
        rights with, any outstanding security of the declarant; 
        (B) a bond (i) secured by a first lien on physical 
        property of the declarant, or (ii) secured by an 
        obligation of a subsidiary company of the declarant 
        secured by a first lien on physical property of such 
        subsidiary company, or (iii) secured by any other 
        assets of the type and character which the Commission 
        by rules and regulations or order may prescribe as 
        appropriate in the public interest or for the 
        protection of investors; (C) a guaranty of, or 
        assumption of liability on, a security of another 
        company; or (D) a receiver's or trustee's certificate 
        duly authorized by the appropriate court or courts; or
          [(2) such security is to be issued or sold solely (A) 
        for the purpose of refunding, extending, exchanging, or 
        discharging an outstanding security of the declarant 
        and/or a predecessor company thereof or for the purpose 
        of effecting a merger, consolidation, or other 
        reorganization; (B) for the purpose of financing the 
        business of the declarant as a public-utility company; 
        (C) for the purpose of financing the business of the 
        declarant, when the declarant is neither a holding 
        company nor a public-utility company; and/or (D) for 
        necessary and urgent corporate purposes of the 
        declarant where the requirements of the provisions of 
        paragraph (1) would impose an unreasonable financial 
        burden upon the declarant and are not necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers; or
          [(3) such security is one the issuance of which was 
        authorized by the company prior to January 1, 1935, and 
        which the Commission by rules and regulations or order 
        authorizes as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers.
    [(d) If the requirements of subsections (c) and (g) are 
satisfied, the Commission shall permit a declaration regarding 
the issue or sale of a security to become effective unless the 
Commission finds that
          [(1) the security is not reasonably adapted to the 
        security structure of the declarant and other companies 
        in the same holding-company system;
          [(2) the security is not reasonably adapted to the 
        earning power of the declarant;
          [(3) financing by the issue and sale of the 
        particular security is not necessary or appropriate to 
        the economical and efficient operation of a business in 
        which the applicant lawfully is engaged or has an 
        interest;
          [(4) the fees, commissions, or other remuneration, to 
        whomsoever paid, directly or indirectly, in connection 
        with the issue, sale or distribution of the security 
        are not reasonable;
          [(5) in the case of a security that is a guaranty of, 
        or assumption of liability on, a security of another 
        company, the circumstances are such asto constitute the 
making of such guaranty or the assumption of such liability an improper 
risk for he declarant; or
          [(6) the terms and conditions of the issue or sale of 
        the security are detrimental to the public interest or 
        the interest of investors or consumers.
    [(e) If the requirements of subsection (g) are satisfied, 
the Commission shall permit a declaration to become effective 
regarding the exercise of a privilege or right to alter the 
priorities, preferences, voting power, or other rights of the 
holders of an outstanding security unless the Commission finds 
that such exercise of such privilege or right will result in an 
unfair or inequitable distribution of voting power among 
holders of the securities of the declarant or is otherwise 
detrimental to the public interest or the interest of investors 
or consumers.
    [(f) Any order permitting a declaration to become effective 
may contain such terms and conditions as the Commission finds 
necessary to assure compliance with the conditions specified in 
this section.
    [(g) If a State commission or State securities commission, 
having jurisdiction over any of the acts enumerated in 
subsection (a) of section 6, shall inform the Commission, upon 
request by the Commission for an opinion or otherwise, that 
State laws applicable to the act in question have not been 
complied with, the Commission shall not permit a declaration 
regarding the act in question to become effective until and 
unless the Commission is satisfied that such compliance has 
been effected.

[ACQUIRING INTEREST IN ELECTRIC AND GAS UTILITY COMPANIES SERVING SAME 
                    TERRITORY

    [Sec. 8. Whenever a State law prohibits, or requires 
approval or authorization of, the ownership or operation by a 
single company of the utility assets of an electric utility 
company and a gas utility company serving substantially the 
same territory, it shall be unlawful for a registered holding 
company, or any subsidiary company thereof, by use of the mails 
or any means or instrumentality of interstate commerce, or 
otherwise--
          [(1) to take any step, without the express approval 
        of the State commission of such State, which results in 
        its having a direct or indirect interest in an electric 
        utility company and a gas utility company serving 
        substantially the same territory; or
          [(2) if it already has any such interest, to acquire, 
        without the express approval of the State commission, 
        any direct or indirect interest in an electric utility 
        company or gas utility company serving substantially 
        the same territory as that served by such companies in 
        which it already has an interest.

[ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER INTERESTS

    [Sec. 9. (a) Unless the acquisition has been approved by 
the Commission under section 10, it shall be unlawful--
          [(1) for any registered holding company or any 
        subsidiary company thereof, by use of the mails or any 
        means or instrumentality of interstate commerce, or 
        otherwise, to acquire, directly or indirectly, any 
        securities or utility assets or any other interest in 
        any business; or
          [(2) for any person, by use of the mails or any means 
        or instrumentality of interstate commerce, to acquire, 
        directly or indirectly, any security of any public-
        utility company, if such person is an affiliate, under 
        clause (A) of paragraph (11) of subsection (a) of 
        section 2, of such company and of any other public 
        utility or holding company, or will by virtue of such 
        acquisition become such an affiliate.
    [(b) Subsection (a) shall not apply to--
          [(1) the acquisition by a public-utility company of 
        utility assets the acquisition of which has been 
        expressly authorized by a State commission; or
          [(2) the acquisition by a public-utility company of 
        securities of a subsidiary public-utility company 
        thereof, provided that both such public-utility 
        companies and all other public-utility companies in the 
        same holding-company system are organized in the same 
        State, that the business of each such company in such 
        system is substantially confined to such State, and 
        that the acquisition of such securities has been 
        expressly authorized by the State commission of such 
        State.
    [(c) Subsection (a) shall not apply to the acquisition by a 
registered holding company, or a subsidiary company thereof, 
of--
          [(1) securities of, or securities the principal or 
        interest of which is guaranteed by, the United States, 
        a State, or political subdivision of a State, or any 
        agency, authority, or instrumentality of any one or 
        more of the foregoing, or any corporation which is 
        wholly owned, directly or indirectly, by any one or 
        more of the foregoing;
          [(2) such other readily marketable securities, within 
        the limitation of such amounts, as the Commission may 
        by rules and regulations prescribe as appropriate for 
        investment of current funds and as not detrimental to 
        the public interest or the interest of investors or 
        consumers; or
          [(3) such commercial paper and other securities, 
        within such limitations, as the Commission may by rules 
        and regulations or order prescribe as appropriate in 
        the ordinary course of business of a registered holding 
        company or subsidiary company thereof and as not 
        detrimental to the public interest or the interest of 
        investors or consumers.

[APPROVAL OF ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER 
                    INTERESTS

    [Sec. 10. (a) A person may apply for approval of the 
acquisition of securities or utility assets, or of any other 
interest in any business, by filing an application in such form 
as the Commission may by rules and regulations prescribe as 
necessary or appropriate in the public interest or for the 
protection of investors and consumers. Such application shall 
include--
          [(1) in the case of the acquisition of securities, 
        such information and copies of such documents as the 
        Commission may by rules and regulations or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers in respect of--
                  [(A) the security to be acquired, the 
                consideration to be paid therefor, and 
                compliance with such State laws as may apply in 
                respect of the issue, sale, or acquisition 
                thereof,
                  [(B) the outstanding securities of the 
                company whose security is to be acquired, the 
                terms, position, rights, and privileges of each 
                class and the options in respect of any such 
                securities,
                  [(C) the names of all security holders of 
                record (or otherwise known to the applicant) 
                owning, holding, or controlling 1 per centum or 
                more of any class of security of such company, 
                the officers and directors of such company, and 
                their remuneration, security holdings in, 
                material contracts with, and borrowings from 
                such company and the offices or directorships 
                held, and securities owned, held, or 
                controlled, by them in other companies,
                  [(D) the bonus, profit-sharing and voting-
                trust agreement, underwriting arrangements, 
                trust indentures, mortgages, and similar 
                documents, by whatever name known, of or 
                relating to such company,
                  [(E) the material contracts, not made in the 
                ordinary course of business, and the service, 
                sales, and construction contracts of such 
                company,
                  [(F) the securities owned, held, or 
                controlled, directly or indirectly, by such 
                company,
                  [(G) balance sheets and profit and loss 
                statements of such company for not more than 
                the five preceding fiscal years, certified, if 
                required by the rules and regulations of the 
                Commission by an independent public accountant,
                  [(H) any further information regarding such 
                company and any associate company or affiliate 
                thereof, or its relation with the applicant 
                company, and
                  [(I) if the applicant be not a registered 
                holding company, any of the information and 
                documents which may be required under section 5 
                from a registered holding company;
          [(2) in the case of the acquisition of utility 
        assets, such information concerning such assets, the 
        value thereof and consideration to be paid therefor, 
        the owner or owners thereof and their relation to, 
        agreements with, and interest in the securities of, the 
        applicant or any associate company thereof as the 
        Commission may by rules and regulations or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers; and
          [(3) in the case of the acquisition of any other 
        interest in an business, such information concerning 
        such business and the interest to be acquired, and the 
        consideration to be paid, as the Commission may by 
        rules and regulations or order prescribe as necessary 
        or appropriate in the public interest or for the 
        protection of investors or consumers.
    [(b) If the requirements of subsection (f) are satisfied, 
the Commission shall approve the acquisition unless the 
Commission finds that--
          [(1) such acquisition will tend towards interlocking 
        relations or the concentration of control of public-
        utility companies, of a kind or to an extent 
        detrimental to the public interest or the interest of 
        investors, or consumers;
          [(2) in case of the acquisition of securities or 
        utility assets, the consideration, including all fees, 
        commissions, and other remuneration, to whomsoever 
        paid, to be given, directly or indirectly, in 
        connection with such acquisition is not reasonable or 
        does not bear a fair relation to the sums invested in 
        or the earning capacity of the utility assets to be 
        acquired or the utility assets underlying the 
        securities to be acquired; or
          [(3) such acquisition will unduly complicate the 
        capital structure of the holding-company system of the 
        applicant or will be detrimental to the public interest 
        or the interest of investors or consumers or the proper 
        functioning of such holding-company system.
The Commission may condition its approval of the acquisition of 
securities of another company upon such a fair offer to 
purchase such of the other securities of the company whose 
security is to be acquired as the Commission may find necessary 
or appropriate in the public interest or for the protection of 
investors or consumers.
    [(c) Notwithstanding the provisions of subsection (b), the 
Commission shall not approve--
          [(1) an acquisition of securities or utility assets, 
        or of any other interest, which is unlawful under the 
        provisions of section 8 or is detrimental to the 
        carrying out of the provisions of section 11; or
          [(2) the acquisition of securities or utility assets 
        of a public utility or holding company unless the 
        Commission finds that such acquisition will serve the 
        public interest by tending towards the economical and 
        efficient development of an integrated public-utility 
        system. This paragraph shall not apply to the 
        acquisition of securities or utility assets of a 
        public-utility company operating exclusively outside 
        the United States.
    [(d) Within such reasonable time after the filing of an 
application under this section as the Commission shall fix by 
rules and regulations or order, the Commission shall enter an 
order either granting or, after notice and opportunity for 
hearing, denying approval of the acquisition unless the 
applicant shall withdraw its application. Amendments to an 
application may be made upon such terms and conditions as the 
Commission may prescribe.
    [(e) The Commission, in any order approving the acquisition 
of securities or utility assets, may prescribe such terms and 
conditions in respect of such acquisition, including the price 
to be paid for such securities or utility assets, as the 
Commission may find necessary or appropriate in the public 
interest or for the protection of investors or consumers.
    [(f) The Commission shall not approve any acquisition as to 
which an application is made under this section unless it 
appears to the satisfaction of the Commission that such State 
laws as may apply in respect of such acquisition have been 
complied with, except where the Commission finds that 
compliance with such State laws would be detrimental to the 
carrying out of the provisions of section 11.

[SIMPLIFICATION OF HOLDING-COMPANY SYSTEMS

    [Sec. 11. (a) It shall be the duty of the Commission to 
examine the corporate structure of every registered holding 
company and subsidiary company thereof, the relationships among 
the companies in the holding-company system of every such 
company and the character of the interests thereof and the 
properties owned or controlled thereby to determine the extent 
to which the corporate structure of such holding-company system 
and the companies therein may be simplified, unnecessary 
complexities therein eliminated, voting power fairly and 
equitably distributed among the holders of securities thereof, 
and the properties and business thereof confined to those 
necessary or appropriate to the operations of an integrated 
public-utility system.
    [(b) It shall be the duty of the Commission, as soon as 
practical after January 1, 1938:
          [(1) To require by order, after notice and 
        opportunity for hearing, that each registered holding 
        company, and each subsidiary company thereof, shall 
        take such action as the Commission shall find necessary 
        to limit the operations of the holding-company system 
        of which such company is a part to a single integrated 
        public-utility system, and to such other businesses as 
        are reasonably incidental, or economically necessary or 
        appropriate to the operations of such integrated 
        public-utility system: Provided, however, That the 
        Commission shall permit a registered holding company to 
        continue to control one or more additional integrated 
        public-utility systems, if, after notice and 
        opportunity for hearing, it finds that--
                  [(A) Each of such additional systems cannot 
                be operated as an independent system without 
                the loss of substantial economies which can be 
                secured by the retention of control by such 
                holding company of such system;
                  [(B) All of such additional systems are 
                located in one State, or in adjoining States, 
                or in a contiguous foreign country; and
                  [(C) The continued combination of such 
                systems under the control of such holding 
                company is not so large (considering the state 
                of the art and the area or region affected) as 
                to impair the advantages of localized 
                management, efficient operation, or the 
                effectiveness of regulation.
[The Commission may permit as reasonably incidental, or 
economically necessary or appropriate to the operations of one 
or more integrated public-utility systems and retention of an 
interest in any business (other than the business of a public-
utility company as such) which the Commission shall find 
necessary or appropriate in the public interest or for the 
protection of investors or consumers and not detrimental to the 
proper functioning of such system or systems.
          [(2) To require by order, after notice and 
        opportunity for hearing, that each registered holding 
        company, and each subsidiary company thereof, shall 
        take such steps as the Commission shall find necessary 
        to ensure that the corporate structure or continued 
        existence of any company in the holding-company system 
        does not unduly or unnecessarily complicate the 
        structure, or unfairly or inequitable distribute voting 
        power among security holders, of such holding-company 
        system. In carrying out the provisions of this 
        paragraph the Commission shall require each registered 
        holding company (and any company in the same holding-
        company system with such holding company) to take such 
        action as the Commission shall find necessary in order 
        that such holding company shall cease to be a holding 
        company with respect to each of its subsidiary 
        companies which itself has a subsidiary company which 
        is a holding company. Except for the purpose of fairly 
        and equitably distributing voting power among the 
        security holders of such company, nothing in this 
        paragraph shall authorize the Commission to require any 
        change in the corporate structure or existence of any 
        company which is not a holding company, or of any 
        company whose principal business is that of a public-
        utility company.
[The Commission may by order revoke or modify any order 
previously made under this subsection, if, after notice and 
opportunity for hearing, it finds that the conditions upon 
which the order was predicated do not exist. Any order made 
under this subsection shall be subject to judicial review as 
provided in section 24.
    [(c) Any order under subsection (b) shall be complied with 
within one year from the date of such order; but the Commission 
shall, upon a showing (made before or after the entry of such 
order) that the applicant has been or will be unable in the 
exercise of due diligence to comply with such order within such 
time, extend such time for an additional period not exceeding 
one year if it finds such extension necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(d) The Commission may apply to a court, in accordance 
with the provisions of subsection (f) of section 18, to enforce 
compliance with any order issued under subsection (b). In any 
such proceeding, the court as a court of equity may, to such 
extent as it deems necessary for purposes of enforcement of 
such order, take exclusive jurisdiction and possession of the 
company or companies and the assets thereof, wherever located; 
and the court shall have jurisdiction, in any such proceeding, 
to appoint a trustee, and the court may constitute and appoint 
the Commission as sole trustee, to hold or administer under the 
direction of the court the assets so possessed. In any 
proceeding for the enforcement of an order of the Commission 
issued under subsection (b), the trustee with the approval of 
the court shall have power to dispose of any or all of such 
assets and, subject to such terms and conditions as the court 
may prescribe, may make such disposition in accordance with a 
fair and equitable reorganization plan which shall have been 
approved by the Commission after opportunity for hearing. Such 
reorganization plan may be proposed in the first instance by 
the Commission, or, subject to such rules and regulations as 
the Commission may deem necessary or appropriate in the public 
interest or for the protection of investors, by any person 
having a bona fide interest (as defined by the rules and 
regulations of the Commission) in the reorganization.
    [(e) In accordance with such rules and regulations or order 
as the Commission may deem necessary or appropriate in the 
public interest or for the protection of investors or 
consumers, any registered holding company or any subsidiary 
company of a registered holding company may, at any time after 
January 1, 1936, submit a plan to the Commission for the 
divestment of control, securities, or other assets, or for 
other action by such company or any subsidiary company thereof 
for the purpose of enabling such company or any subsidiary 
company thereof to comply with the provisions of subsection 
(b). If, after notice and opportunity for hearing, the 
Commission shall find such plan, as submitted or as modified, 
necessary to effectuate the provisions of subsection (b) and 
fair and equitable to the persons affected by such plan, the 
Commission shall make an order approving such plan; and the 
Commission, at the request of the company, may apply to a 
court, in accordance with the provisions of subsection (f) of 
section 18, to enforce and carry out the terms and provisions 
of such plan. If, upon any such application, the court, after 
notice and opportunity for hearing, shall approve such plan as 
fair and equitable and as appropriate to effectuate the 
provisions of section 11, the court as a court of equity may, 
to such extent as it deems necessary for the purpose of 
carrying out the terms and provisions of such plan, take 
exclusive jurisdiction and possession of the company or 
companies and the assets thereof, wherever located; and the 
court shall have jurisdiction to appoint a trustee, and the 
court may constitute and appoint the Commission as sole 
trustee, to hold or administer, under the direction of the 
court and in accordance with the plan theretofore approved, by 
the court and the Commission, the assets so possessed.
    [(f) In any proceeding in a court of the United States, 
whether under this section or otherwise, in which a receiver or 
trustee is appointed for any registered holding company, or any 
subsidiary company thereof, the court may constitute and 
appoint the Commission as sole trustee or receiver, subject to 
the directions and orders of the court, whether or not a 
trustee or receiver shall theretofore have been appointed, and 
in any such proceeding the court shall not appoint any person 
other than the Commission trustee or receiver without notifying 
the Commission and giving it an opportunity to be heard before 
making any such appointment. In no proceeding under this 
section or otherwise shall the Commission be appointed as 
trustee or receiver without its express consent. In any such 
proceeding a reorganization plan for a registered holding 
company or any subsidiary company thereof shall not become 
effective unless such plan shall have been approved by the 
Commission after opportunity for hearing prior to its 
submission to the court. Notwithstanding any other provision of 
law, any such reorganization plan may be proposed in the first 
instance by the Commission or, subject to such rules and 
regulations as the Commission may deem necessary or appropriate 
in the public interest or for the protection of investors, by 
any person having a bona fide interest (as defined by the rules 
and regulations of the Commission) in the reorganization. The 
Commission may, by such rules and regulations or order as it 
may deem necessary or appropriate in the public interest or for 
the protection of investors or consumers, require that any or 
all fees, expenses, and remuneration, to whomsoever paid, in 
connection with any reorganization, dissolution, liquidation, 
bankruptcy, or receivership of a registered holding company or 
subsidiary company thereof, in any such proceeding, shall be 
subject to approval by the Commission.
    [(g) It shall be unlawful for any person to solicit or 
permit the use of his or its name to solicit, by use of the 
mails or any means or instrumentality of interstate commerce, 
or otherwise, any proxy, consent, authorization, power of 
attorney, deposit, or dissent in respect of any reorganization 
plan of a registered holding company or any subsidiary company 
thereof under this section, or otherwise, or in respect of any 
plan under this section for the divestment of control, 
securities, or other assets, or for the dissolution of any 
registered holding company or any subsidiary company thereof, 
unless--
          [(1) the plan has been proposed by the Commission, or 
        the plan and such information regarding it and its 
        sponsors as the Commission may deem necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers has been submitted 
        to the Commission by a person having a bona fide 
        interest (as defined by the rules and regulations of 
        the Commission) in such reorganization;
          [(2) each such solicitation is accompanied or 
        preceded by a copy of a report on the plan which shall 
        be made by the Commission after an opportunity for a 
        hearing on the plan and other plans submitted to it, or 
        by an abstract of such report made or approved by the 
        Commission; and
          [(3) each such solicitation is made not in 
        contravention of such rules and regulations or orders 
        as the Commission may deem necessary or appropriate in 
        the public interest or for the protection of investors 
        or consumers.
Nothing in this subsection or the rules and regulations 
thereunder shall prevent any person from appearing before the 
Commission or any court through an attorney or proxy.

[INTERCOMPANY LOANS; DIVIDENDS; SECURITY TRANSACTIONS; SALE OF UTILITY 
                    ASSETS; PROXIES; OTHER TRANSACTIONS

    [Sec. 12. (a) It shall be unlawful for any registered 
holding company, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, directly 
or indirectly, to borrow, or to receive any extension of credit 
or indemnity, from any public-utility company in the same 
holding-company system or from any subsidiary company of such 
holding company, but it shall not be unlawful under this 
subsection to renew, or extend the time of, any loan, credit, 
or indemnity outstanding on the date of the enactment of this 
title.
    [(b) It shall be unlawful for any registered holding 
company or subsidiary company thereof, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, directly or indirectly, to lend or in any manner 
extend its credit to or indemnify any company in the same 
holding-company system in contravention of such rules and 
regulations or orders as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers or to prevent the circumvention of the 
provisions of this title or the rules, regulations, or orders 
thereunder.
    [(c) It shall be unlawful for any registered holding 
company or any subsidiary company thereof, by use of the mails 
or any means or instrumentality of interstate commerce, or 
otherwise, to declare or pay any dividend on any security of 
such company or to acquire, retire, or redeem any security of 
such company, in contravention of such rules and regulations or 
orders as the Commission deems necessary or appropriate to 
protect the financial integrity of companies in holding-company 
systems, to safeguard the working capital of public-utility 
companies, to prevent the payment of dividends out of capital 
or unearned surplus, or to prevent the circumvention of the 
provisions of this title or the rules, regulations, or orders 
thereunder.
    [(d) It shall be unlawful for any registered holding 
company, by use of the mails or any means or instrumentality of 
interstate commerce, or otherwise, to sell any security which 
it owns of any public-utility company, or any utility assets, 
in contravention of such rules and regulations or orders 
regarding the consideration to be received for such sale, 
maintenance of competitive conditions, fees and commissions, 
accounts, disclosure of interest, and similar matters as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or to 
prevent the circumvention of the provisions of this title or 
the rules, regulations, or orders thereunder.
    [(e) It shall be unlawful for any person to solicit or to 
permit the use of his or its name to solicit, by use of the 
mails or any means or instrumentality of interstate commerce, 
or otherwise, any proxy, power of attorney, consent, or 
authorization regarding any security of a registered holding 
company or a subsidiary company thereof in contravention of 
such rules and regulations or orders as the Commission deems 
necessary or appropriate in the public interest or for the 
protection of investors or consumers or to prevent the 
circumvention of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(f) It shall be unlawful for any registered holding 
company or subsidiary company thereof, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, to negotiate, enter into, or take any step in the 
performance of any transaction not otherwise unlawful under 
this title, with any company in the same holding-company system 
or with any affiliate of a company in such holding-company 
system in contravention of such rules and regulations or orders 
regarding reports, accounts, costs, maintenance of competitive 
conditions, a disclosure of interest, duration of contracts, 
and similar matters as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers or to prevent the circumvention of the 
provisions of this title or the rules and regulations 
thereunder.
    [(g) It shall be unlawful for any affiliate of any public-
utility company, by use of the mails or any means or 
instrumentality of interstate commerce, or for any affiliate of 
any public-utility company engaged in interstate commerce, or 
of any registered holding company or any subsidiary company 
thereof, by use of the mails or any means or instrumentality of 
interstate commerce, or otherwise, to negotiate, enter into, or 
take any step in the performance of any transaction not 
otherwise unlawful under this title, with any such company of 
which it is an affiliate, in contravention of such rules and 
regulations or orders regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contracts, and similar matters as the Commission 
deems necessary or appropriate to prevent the circumvention of 
the provisions of this title.
    [(h) It shall be unlawful for any registered holding 
company, or any subsidiary company thereof, by use of the mails 
or any means or instrumentality of interstate commerce, or 
otherwise, directly or indirectly--
          [(1) to make any contribution whatsoever in 
        connection with the candidacy, nomination, election or 
        appointment of any person for or to any office or 
        position in the Government of the United States, a 
        State, or any political subdivision of a State, or any 
        agency, authority, or instrumentality of any one or 
        more of the foregoing; or
          [(2) to make any contribution to or in support of any 
        political party or any committee or agency thereof.
[The term ``contribution'' as used in this subsection includes 
any gift, subscription, loan, advance, or deposit of money or 
anything of value, and includes any contract, agreement, or 
promise, whether or not legally enforceable, to make a 
contribution.
    [(i) It shall be unlawful for any person employed or 
retained by any registered holding company, or any subsidiary 
company thereof, to present, advocate, or oppose any matter 
affecting any registered holding company or any subsidiary 
company thereof, before the Congress or any Member or committee 
thereof, or before the Commission or Federal Power Commission, 
or any member, officer, or employee of either such Commission, 
unless such person shall file with the Commission in such form 
and detail and at such time as the Commission shall by rules 
and regulations or order prescribe as necessary or appropriate 
in the public interest or for the protection of investors or 
consumers, a statement of the subject matter in respect of 
which such person is retained or employed, the nature and 
character of such retainer or employment, and the amount of 
compensation received or to be received by such person, 
directly or indirectly, in connection therewith. It shall be 
the duty of every such person so employed or retained to file 
with the Commission within ten days after the close of each 
calendar month during such retainer or employment, in such form 
and detail as the Commission shall by rules and regulations or 
order prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers, a 
statement of the expenses incurred and the compensation 
received by such person during such month in connection with 
such retainer or employment.

[SERVICE, SALES, AND CONSTRUCTION CONTRACTS

    [Sec. 13. (a) After April 1, 1936, it shall be unlawful for 
any registered holding company, by use of the mails or any 
means or instrumentality of interstate commerce, or otherwise, 
to enter into or take any step in the performance of any 
service, sales, or construction contract by which such company 
undertakes to perform services or construction work for, or 
sell goods to, any associate company thereof which is a public-
utility or mutual service company. This provision shall not 
apply to such transactions, involving special or unusual 
circumstances or not in the ordinary course of business, as the 
Commission by rules and regulations or order may conditionally 
or unconditionally exempt as being necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(b) After April 1, 1936, it shall be unlawful for any 
subsidiary company of any registered holding company or for any 
mutual service company, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, to enter 
into or take any step in the performance of any service, sales, 
or construction contract by which such company undertakes to 
perform services or construction work for, or sell goods to, 
any associate company thereof except in accordance with such 
terms and conditions and subject to such limitations and 
prohibitions as the Commission by rules and regulations or 
order shall prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers and to 
insure that such contracts are performed economically and 
efficiently for the benefit of such associate companies at 
cost, fairly and equitably allocated among such companies. This 
provision shall not apply to such transactions as the 
Commission by rules and regulations or order may conditionally 
or unconditionally exempt as being necessary or appropriate in 
the public interest or for the protection of investors or 
consumers, if such transactions (1) are with any associate 
company which does not derive, directly or indirectly, any 
material part of its income from sources within the United 
States and which is not a public-utility company operating 
within the United States, or (2) involve special or unusual 
circumstances or are not in the ordinary course of business.
    [(c) The rules and regulations and orders of the Commission 
under this section may prescribe, among other things, such 
terms and conditions regarding the determination of costs and 
the allocation thereof among specified classes of companies and 
for specified classes of service, sales, and construction 
contracts, the duration of such contracts, the making and 
keeping of accounts and cost-accounting procedures, the filing 
of annual and other periodic and special reports, the 
maintenance of competitive conditions, the disclosure of 
interests, and similar matters, as the Commission deems 
necessary or appropriate in the public interest or for the 
protection of investors or consumers.
    [(d) The rules and regulations and orders of the Commission 
under this section shall prescribe, among other things, such 
terms and conditions regarding the manner in which application 
may be made for approval as a mutual service company and the 
granting and continuance of such approval, the nature and 
enforcement of agreements for the sharing of expenses and 
distributing of revenues among member companies, and matters 
relating to such agreements, the nature and types of businesses 
and transactions in which mutual service companies may engage, 
and the manner of engaging therein, and the relations and 
transactions with member companies and affiliates, as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers. The 
Commission shall not approve, or continue the approval of, any 
company as a mutual service company unless the Commission finds 
such company is so organized as to ownership, costs, revenues, 
and the sharing thereof as reasonably to insure the efficient 
and economical performance of service, sales, or construction 
contracts by such company for member companies, at cost fairly 
and equitably allocated among such member companies, at a 
reasonable saving to member companies over the cost to such 
companies of comparable contracts performed by independent 
persons. The Commission, upon its own motion or at the request 
of a member company or a State commission, may, after notice 
and opportunity for hearing, by order require a reallocation or 
reapportionment of costs among member companies of a mutual 
service company if it finds the existing allocation inequitable 
and may require the elimination of a service or services to a 
member company which does not bear its fair proportion of costs 
or which, by reason of its size or other circumstances, does 
not require such service or services. The Commission, after 
notice and opportunity for hearing, by order shall revoke, 
suspend, or modify the approval given any mutual service 
company if it finds that such company has persistently violated 
any provision of this section or any rule, regulation, or order 
thereunder.
    [(e) It shall be unlawful for any affiliate of any public-
utility company engaged in interstate commerce, or of any 
registered holding company or subsidiary company thereof, by 
use of the mails or any means or instrumentality of interstate 
commerce, or otherwise, to enter into or take any step in the 
performance of any service, sales, or construction contract, by 
which such affiliate undertakes to perform services or 
construction work for, or sell goods to, any such company of 
which it is an affiliate, in contravention of such rules and 
regulations or orders regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contracts, and similar matters, as the Commission 
deems necessary or appropriate to prevent the circumvention of 
the provisions of this title or the rules, regulations, or 
orders thereunder.
    [(f) It shall be unlawful for any person whose principal 
business is the performance of service, sales, or construction 
contracts for public-utility or holding companies, by use of 
the mails or any means or instrumentality of interstate 
commerce, to enter into or take any step in the performance of 
any service, sales, or construction contract with any public-
utility company, or for any such person, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, to enter into or take any step in the performance of 
any service, sales, or construction contract with any public-
utility company engaged in interstate commerce, or with any 
registered holding company or any subsidiary company of a 
registered holding company, in contravention of such rules and 
regulations or orders regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contracts, and similar matters as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers or to prevent the 
circumvention of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(g) The Commission, in order to obtain information to 
serve as a basis for recommending further legislation, shall 
from time to time conduct investigations regarding the making, 
performance, and costs of service, sales, and construction 
contracts with holding companies and subsidiary companies 
thereof and with public-utility companies, the economies 
resulting therefrom, and the desirability thereof. The 
Commission shall report to Congress, from time to time, the 
results of such investigations, together with such 
recommendations for legislation as it deems advisable. On the 
basis of such investigations the Commission shall classify the 
different types of such contracts and the work done thereunder, 
and shall make recommendations from time to time regarding the 
standards and scope of such contracts in relation to public-
utility companies of different kinds and sizes and the costs 
incurred thereunder and economies resulting therefrom. Such 
recommendations shall be made available to State commissions, 
public-utility companies, and to the public in such form and at 
such reasonable charge as the Commission may prescribe.

[PERIODIC AND OTHER REPORTS

    [Sec. 14. Every registered holding company and every mutual 
service company shall file with the Commission such annual, 
quarterly, and other periodic and special reports, the answers 
to such specific questions and the minutes of such directors', 
stockholders', and other meetings, as the Commission may by 
rules and regulations or order prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors or consumers. Such reports, if required by the rules 
and regulations of the Commission, shall be certified by an 
independent public accountant, and shall be made and filed at 
such time and in such form and detail as the Commission shall 
prescribe. The Commission may require that there be included in 
reports filed with it such information and documents as it 
finds necessary or appropriate to keep reasonably current the 
information filed under section 5 or 13, and such further 
information concerning the financial condition, security 
structure, security holdings, assets, and cost thereof, 
wherever determinable, and affiliations of the reporting 
company and the associate companies, member companies, and 
affiliates thereof as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers.

[ACCOUNTS AND RECORDS

    [Sec. 15. (a) Every registered holding company and every 
subsidiary company thereof shall make, keep, and preserve for 
such periods, such accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records as 
the Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or for 
the enforcement of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(b) Every affiliate of a registered holding company or of 
any subsidiary company thereof, or of any public-utility 
company engaged in interstate commerce or not so engaged, shall 
make, keep, and preserve for such periods, such accounts, cost-
accounting procedures, correspondence, memoranda, papers, 
books, and other records relating to any transaction of such 
affiliate which is subject to any provision of this title or 
any rule, regulation, or order thereunder, as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers or for the enforcement 
of the provisions of this title or the rules, regulations, or 
orders thereunder.
    [(c) Every mutual service company, and ever affiliate of a 
mutual service company as to any transaction of such affiliate 
which is subject to any provision of this title or any rule, 
regulation, or order thereunder, shall make, keep, and preserve 
for such periods, such accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records, as 
the Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or for 
the enforcement of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(d) Every person whose principal business is the 
performance of service, sales, or construction contracts for 
public-utility or holding companies shall make, keep, and 
preserve for such periods, such accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records, relating to any transaction by such person which is 
subject to any provision of this title or any rule, regulation, 
or order thereunder, as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers or for the enforcement of the provisions 
of this title or the rules and regulations thereunder.
    [(e) After the Commission has prescribed the form and 
manner of making and keeping accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records to be kept by any person hereunder, it shall be 
unlawful for any such person to keep any accounts, cost-
accounting procedures, correspondence, memoranda, papers, 
books, or other records other than those prescribed or such as 
may be approved by the Commission, or to keep his or its 
accounts, cost-accounting procedures, correspondence, 
memoranda, papers, books, or other records in any manner other 
than that prescribed or approved by the Commission.
    [(f) All accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records 
kept or required to be kept by persons subject to any provision 
of this section shall be subject at any time and from time to 
time to such reasonable periodic, special, and other 
examinations by the Commission, or any member or representative 
thereof, as the Commission may prescribe. The Commission, after 
notice and opportunity for hearing, may prescribe the account 
or accounts in which particular outlays, receipts, and other 
transactions shall be entered, charged, or credited and the 
manner in which such entry, charge, or credit shall be made, 
and may require an entry to be modified or supplemented so as 
properly to show the cost of any asset or any other cost.
    [(g) It shall be the duty of every registered holding 
company and of every subsidiary company thereof and of every 
affiliate of a company insofar as such affiliate is subject to 
any provision of this title or any rule, regulation, or order 
thereunder, to submit the accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records of 
such holding company, subsidiary company, or affiliate, as the 
case may be, to such examinations, in person or by duly 
appointed attorney, by the holder of any security of such 
holding company, subsidiary company, or affiliate, as the case 
may be, as the Commission deems necessary or appropriate in the 
public interest or for the protection of investors or 
consumers.
    [(h) It shall be the duty of every mutual service company, 
and of every affiliate of a mutual service company, and of 
every person whose principal business is the performance of 
service, sales, or construction contracts for public-utility or 
holding companies, insofar as such affiliate or such person is 
subject to any provision of this title or any rule, regulation, 
or order thereunder, to submit the accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records of such mutual service company, affiliate, or person to 
such examinations, in person or by duly appointed attorney, by 
member companies of such mutual service company and by public-
utility or holding companies for which such person performs 
service, sales, or construction contracts as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers.
    [(i) The Commission, by such rules and regulations as it 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers may prescribe for 
persons subject to the provisions of subsection (a), (b), (c), 
or (d) of this section uniform methods for keeping accounts 
required under any provision of this section, including, among 
other things, the manner in which the cost of all assets, 
whenever determinable, shall be shown, the methods of 
classifying and segregating accounts, and the manner in which 
cost-accounting procedures shall be maintained.

[LIABILITY FOR MISLEADING STATEMENTS

    [Sec. 16. (a) Any person who shall make or cause to be made 
any statement in any application, report, registration 
statement, or document filed pursuant to any provision of this 
title, or any rule, regulation, or order thereunder, which 
statement was at the time and in the light of the circumstances 
under which it was made false or misleading with respect to any 
material fact shall be liable in the same manner, to the same 
extent, and subject to the same limitations as provided in 
section 18 of the Securities Exchange Act of 1934 with respect 
to an application, report, or document filed pursuant to the 
Securities Exchange Act of 1934.
    [(b) The rights and remedies provided by this title, except 
as provided in section 17(b), shall be in addition to any and 
all other rights and remedies that may exist under the 
Securities Act of 1933, as amended, or the Securities Exchange 
Act of 1934, or otherwise at law or in equity; but no person 
permitted to maintain a suit for damages under the provisions 
of this title shall recover, through satisfaction of judgment 
in one or more actions, a total amount in excess of his actual 
damages on account of the act complained of.

[OFFICERS, DIRECTORS, AND OTHER AFFILIATES

    [Sec. 17. (a) Every person who is an officer or director of 
a registered holding company shall file with the Commission in 
such form as the Commission shall prescribe (1) at the time of 
the registration of such holding company, or within ten days 
after such person becomes an officer or director, a statement 
of the securities of such registered holding company or any 
subsidiary company thereof of which he is, directly or 
indirectly, the beneficial owner, and (2) within ten days after 
the close of each calendar month thereafter, if there has been 
any change in such ownership during such month, a statement of 
such ownership as of the close of such calendar month and of 
the changes in such ownership that have occurred during such 
calendar month.
    [(b) For the purpose of preventing the unfair use of 
information which may have been obtained by any such officer or 
director by reason of his relationship to such registered 
holding company or any subsidiary company thereof, any profit 
realized by any such officer or director from any purchase and 
sale, or any sale and purchase, of any security of such 
registered holding company or any subsidiary company thereof 
within any period of less than six months, unless such security 
was acquired in good faith in connection with a debt previously 
contracted, shall inure to and be recoverable by the holding 
company or subsidiary company in respect of the security of 
which such profit was realized, irrespective of any intention 
on the part of such officer or director in entering into such 
transaction to hold the security purchased or not to repurchase 
the security sold for a period of more than six months. Suit to 
recover such profit may be instituted at law or in equity in 
any court of competent jurisdiction by the company entitled 
thereto or by the owner of any security of such company in the 
name and in the behalf of such company if such company shall 
fail or refuse to bring such suit within sixty days after 
request or shall fail diligently to prosecute the same 
thereafter; but no such suit shall be brought more than two 
years after the date such profit was realized. This subsection 
shall not cover any transaction where such person was not an 
officer or director at the times of the purchase and sale, or 
the sale and purchase, of the security involved, or any 
transaction or transactions which the Commission by rules and 
regulations may, as necessary or appropriate in the public 
interest or for the protection of investors orconsumers, exempt 
as not comprehended within the purpose of this subsection. Nothing in 
this subsection shall be construed to give a remedy in the case of any 
transaction in respect of which a remedy is given under subsection (b) 
of section 16 of the Securities Exchange Act of 1934.
    [(c) After one year from the date of the enactment of this 
title, no registered holding company or any subsidiary company 
thereof shall have, as an officer or director thereof, any 
executive officer, director, partner, appointee, or 
representative of any bank, trust company, investment banker, 
or banking association or firm, or any executive officer, 
director, partner, appointee, or representative of any 
corporation a majority of whose stock, having the unrestricted 
right to vote for the election of directors, is owned by any 
bank, trust company, investment banker, or banking association 
or firm, except in such cases as rules and regulations 
prescribed by the Commission may permit as not adversely 
affecting the public interest or the interest of investors or 
consumers.

[INVESTIGATIONS; INJUNCTIONS, ENFORCEMENT OF TITLE, AND PROSECUTION OF 
                    OFFENSES

    [Sec. 18. (a) The Commission, in its discretion, may 
investigate any facts, conditions, practices, or matters which 
it may deem necessary or appropriate to determine whether any 
person has violated or is about to violate any provision of 
this title or any rule or regulation thereunder, or to aid in 
the enforcement of the provisions of this title, in the 
prescribing of rules and regulations thereunder, or in 
obtaining information to serve as a basis for recommending 
further legislation concerning the matters to which this title 
relates. The Commission may require or permit any person to 
file with it a statement in writing, under oath or otherwise as 
it shall determine, as to any or all facts and circumstances 
concerning a matter which may be the subject of investigation. 
The Commission, in its discretion, may publish, or make 
available to State commissions, information concerning any such 
subject.
    [(b) The Commission upon its own motion or at the request 
of a State commission may investigate, or obtain any 
information regarding the business, financial condition, or 
practices of any registered holding company or subsidiary 
company thereof or facts, conditions, practices, or matters 
affecting the relations between any such company and any other 
company or companies in the same holding-company system.
    [(c) For the purpose of any investigation or any other 
proceeding under this title, any member of the Commission, or 
any officer thereof designated by it, is empowered to 
administer oaths and affirmations, subpoena witnesses, compel 
their attendance, take evidence, and require the production of 
any books, papers, correspondence, memoranda, contracts, 
agreements, or other records which the Commission deems 
relevant or material to the inquiry. Such attendance of 
witnesses and the production of any such records may be 
required from any place in any State or in any Territory or 
other place subject to the jurisdiction of the United States at 
any designated place of hearing.
    [(d) In case of contumacy by, or refusal to obey a subpoena 
issued to, any person, the Commission may invoke the aid of any 
court of the United States within the jurisdiction of which 
such investigation or proceeding is carried on, or where such 
person resides or carries on business, in requiring the 
attendance and testimony of witnesses and the production of 
books, papers, correspondence, memoranda, contracts, 
agreements, and other records. And such court may issue an 
order requiring such person to appear before the Commission or 
member or officer designated by the Commission, there to 
produce records, if so ordered, or to give testimony touching 
the matter under investigation or in question; and any failure 
to obey such order of the court may be punished by such court 
as a contempt thereof. All process in any such case may be 
served in the judicial district whereof such person is an 
inhabitant or wherever he may be found. Any person who, without 
just cause, shall fail or refuse to attend and testify or to 
answer any lawful inquiry or to produce books, papers, 
correspondence, memoranda, contracts, agreements, or other 
records, if in his or its power so to do, in obedience to the 
subpoena of the Commission, shall be guilty of a misdemeanor 
and, upon conviction, shall be subject to a fine of not more 
than $1,000 or to imprisonment for a term of not more than one 
year, or both.
    [(e) Whenever it shall appear to the Commission that any 
person is engaged or about to engage in any acts or practices 
which constitute or will constitute a violation of the 
provisions of this title, or of any rule, regulation, or order 
thereunder, it may in its discretion bring an action in the 
proper district court of the United States or the United States 
courts of any Territory or other place subject to the 
jurisdiction of the United States, to enjoin such acts or 
practices and to enforce compliance with this title or any 
rule, regulation, or order thereunder, and upon a proper 
showing a permanent or temporary injunction or degree or 
restraining order shall be granted without bond. The Commission 
may transmit such evidence as may be available concerning such 
acts or practices to the Attorney General, who, in his 
discretion, may institute the appropriate criminal proceedings 
under this title.
    [(f) Upon application of the Commission, the district 
courts of the United States, and the United States courts of 
any Territory or other place subject to the jurisdiction of the 
United States shall have jurisdiction to issue writs of 
mandamus commanding any person to comply with the provisions of 
this title or any rule, regulation, or order of the Commission 
thereunder.

[HEARINGS BY COMMISSION

    [Sec. 19. Hearings may be public and may be held before the 
Commission, any member or members thereof, or any officer or 
officers of the Commission designated by it, and appropriate 
records thereof shall be kept. In any proceeding before the 
Commission, the Commission, in accordance with such rules and 
regulations as it may prescribe, shall admit as a party any 
interested State, State commission, State securities 
commission, municipality, or other political subdivision of a 
State, and may admit as a party any representative of 
interested consumers or security holders, or any other person 
whose participation in the proceedings may be in the public 
interest or for the protection of investors or consumers.

[RULES, REGULATIONS, AND ORDERS

    [Sec. 20. (a) The Commission shall have authority from time 
to time to make, issue, amend, and rescind such rules and 
regulations and such orders as it may deem necessary or 
appropriate to carry out the provisions of this title, 
including rules and regulations defining accounting, technical, 
and trade terms used in this title. Among other things, the 
Commission shall have authority, for the purpose of this title, 
to prescribe the form or forms in which information required in 
any statement, declaration, application, report, or other 
document filed with the Commission shall be set forth, the 
items or details to be shown in balance sheets, profit and loss 
statements, and surplus accounts, the manner in which the cost 
of all assets, whenever determinable, shall be shown in regard 
to such statements, declarations, applications, reports, and 
other documents filed with the Commission, or accounts required 
to be kept by the rules, regulations, or orders of the 
Commission, and the methods to be followed in the keeping of 
accounts and cost-accounting procedures and the preparation of 
reports, in the segregation and allocation of costs, in the 
determination of liabilities, in the determination of 
depreciation and depletion, in the differentiation of recurring 
and nonrecurring income, in the differentiation of investment 
and operating income, and in the keeping or preparation, where 
the Commission deems it necessary or appropriate, of separate 
or consolidated balance sheets or profit and loss statements 
for any companies in the same holding-company system.
    [(b) In the case of the accounts of any company whose 
methods of accounting are prescribed under the provisions of 
any law of the United States or of any State, the rules and 
regulations or orders of the Commission in respect of accounts 
shall not be inconsistent with the requirements imposed by such 
law or any rule or regulation thereunder; nor shall anything in 
this title relieve any public-utility company from the duty to 
keep the accounts, books, records, or memoranda which may be 
required to be kept by the law of any State in which it 
operates or by the State commission of any such State. But this 
provision shall not prevent the Commission from imposing such 
additional requirements regarding reports or accounts as it may 
deem necessary or appropriate in the public interest or for the 
protection of investors or consumers.
    [(c) The rules and regulations of the Commission shall be 
effective upon publication in the manner which the Commission 
shall prescribe. For the purpose of its rules, regulations, or 
orders the Commission may classify persons and matters within 
its jurisdiction and prescribe different requirements for 
different classes of persons or matters. Orders of the 
Commission under this title shall be issued only after 
opportunity for hearing.
    [(d) The Commission, by such rules and regulations or order 
as it deems necessary or appropriate in the public interest or 
for the protection of investors or consumers, may authorize the 
filing of any information or documents required to be filed 
with the Commission under this title, or under the Securities 
Act of 1933, as amended, or under the Securities Exchange Act 
of 1934, by incorporating by reference any information or 
documents theretofore or concurrently filed with the Commission 
under this title or either of such Acts. No provision of this 
title imposing any liability shall apply to any act done or 
omitted in good faith in conformity with any rule, regulation, 
or order of the Commission, notwithstanding that such rule, 
regulation, or order may, after such act or omission, be 
amended or rescinded or be determined by judicial or other 
authority to be invalid for any reason.

[EFFECT ON EXISTING LAW

    [Sec. 21. Nothing in this title shall affect (1) the 
jurisdiction of the Commission under the Securities Act of 
1933, as amended, or the Securities Exchange Act of 1934 over 
any person, security, or contract, or (2) the rights, 
obligations, duties, or liabilities of any person under such 
Acts; nor shall anything in this title affect the jurisdiction 
of any other commission, board, agency, or officer of the 
United States or of any State or political subdivision of any 
State, over any person, security, or contract, insofar as such 
jurisdiction does not conflict with any provision of this title 
or any rule, regulation, or order thereunder.

[INFORMATION FILED WITH THE COMMISSION

    [Sec. 22. (a) When in the judgment of the Commission the 
disclosure of such information would be in the public interest 
or the interest of investors or consumers, the information 
contained in any statement, application, declaration, report, 
or other document filed with the Commission shall be available 
to the public, and copies thereof may be furnished to any 
person at such reasonable charge and under such reasonable 
limitations as the Commission may prescribe: Provided, however, 
That nothing in this title shall be construed to require, or to 
authorize the Commission to require, the revealing of trade 
secrets or processes in any application, declaration, report, 
or document filed with the Commission under this title.
    [(b) Any person filing such application, declaration, 
report, or document may make written objection to the public 
disclosure of information contained therein, stating the 
grounds for such objection, and the Commission is authorized to 
hear objections in any such case where it finds it advisable.
    [(c) It shall be unlawful for any member, officer, or 
employee of the Commission to disclose to any person other than 
a member, officer, or employee of the Commission, or to use for 
personal benefit, any information contained in any application, 
declaration, report, or document filed with the Commission 
which is not made available to the public pursuant to this 
section.

[ANNUAL REPORTS OF COMMISSION

    [Sec. 23. The Commission shall submit annually a report to 
the Congress covering the work of the Commission for the 
preceding year and including such information, data, and 
recommendations for further legislation in connection with the 
matters covered by this title as it may find advisable.

[COURT REVIEW OF ORDERS

    [Sec. 24. (a) Any person or party aggrieved by an order 
issued by the Commission under this title may obtain a review 
of such order in the court of appeals of the United States 
within any circuit wherein such person resides or has his 
principal place of business, or in the United States Court of 
Appeals for the District of Columbia, by filing in such court, 
within sixty days after the entry of such order, a written 
petition praying that the order of the Commission be modified 
or set aside in whole or in part. A copy of such petition shall 
be forthwith transmitted by the clerk of the court to any 
member of the Commission, or any officer thereof designated by 
the Commission for that purpose, and thereupon the Commission 
shall file in the court the record upon which the order 
complained of was entered, as provided in section 2112 of title 
28, United States Code. Upon the filing of such petition such 
court shall have jurisdiction, which upon the filing of the 
record shall be exclusive, to affirm, modify, or set aside such 
order, in whole or in part. No objection to the order of the 
Commission shall be considered by the court unless such 
objection shall have been urged before the Commission or unless 
there were reasonable grounds for failure so to do. The 
findings of the Commissions as to the facts, if supported by 
substantial evidence, shall be conclusive. If application is 
made to the court for leave to adduce additional evidence, and 
it is shown to the satisfaction of the court that such 
additional evidence is material and that there were reasonable 
grounds for failure to adduce such evidence in the proceeding 
before the Commission, the court may order such additional 
evidence to be taken before the Commission and to be adduced 
upon the hearing in such manner and upon such terms and 
conditions as to the court may seem proper. The Commission may 
modify its findings as to the facts by reason of the additional 
evidence so taken, and it shall file with the court such 
modified or new findings, which, if supported by substantial 
evidence, shall be conclusive, and its recommendation, if any, 
for the modification or setting aside of the original order. 
The judgment and decree of the court affirming, modifying, or 
setting aside, in whole or in part, any such order of the 
Commission shall be final, subject to review by the Supreme 
Court of the United States upon certiorari or certification as 
provided in section 1254 of title 28, United States Code.
    [(b) The commencement of proceedings under subsection (a) 
shall not, unless specifically ordered by the court, operate as 
a stay of the Commission's order.

[JURISDICTION OF OFFENSES AND SUITS

    [Sec. 25. The District Courts of the United States and the 
United States courts of any Territory or other place subject to 
the jurisdiction of the United States shall have jurisdiction 
of violations of this title or the rules, regulations, or 
orders thereunder, and, concurrently with State and Territorial 
courts, of all suits in equity and actions at law brought to 
enforce any liability or duty created by, or to enjoin any 
violation of, this title or the rules, regulations, or orders 
thereunder. Any criminal proceeding may be brought in the 
district wherein any act or transaction constituting the 
violation occurred. Any suit or action to enforce any liability 
or duty created by, or to enjoin any violation of, this title 
or rules, regulations, or orders thereunder, may be brought in 
any such district or in the district wherein the defendant is 
an inhabitant or transacts business, and process in such cases 
may be served in any district of which the defendant is an 
inhabitant or transacts business or wherever the defendant may 
be found. Judgments and decrees so rendered shall be subject to 
review as provided in sections 1254, 1291, 1292, and 1294 of 
title 28, United States Code. No costs shall be assessed for or 
against the Commission in any proceeding under this title 
brought by or against the Commission in any court.

[VALIDITY OF CONTRACTS

    [Sec. 26. (a) Any condition, stipulation, or provision 
binding any person to waive compliance with any provision of 
this title or with any rule, regulation, or order thereunder 
shall be void.
    [(b) Every contract made in violation of any provision of 
this title or of any rule, regulation, or order thereunder, and 
every contract heretofore or hereafter made, the performance of 
which involves the violation of, or the continuance of any 
relationship or practice in violation of, any provision of this 
title, or any rule, regulation, or order thereunder, shall be 
void (1) as regards the rights of any person who, in violation 
of any such provision, rule, regulation, or order, shall have 
made or engaged in the performance of any such contract, and 
(2) as regards the rights of any person who, not being a party 
to such contract, shall have acquired any right thereunder with 
actual knowledge of the facts by reason of which the making or 
performance of such contract was in violation of any such 
provision, rule, regulation, or order.
    [(c) Nothing in this title shall be construed (1) to affect 
the validity of any loan or extension of credit (or any 
extension or renewal thereof) made or of any lien created prior 
or subsequent to the enactment of this title, unless at the 
time of the making of such loan or extension of credit (or 
extension or renewal thereof) or the creating of such lien, the 
person making such loan or extension of credit (or extension or 
renewal thereof) or acquiring such lien shall have actual 
knowledge of facts by reason of which the making of such loan 
or extension of credit (or extension or renewal thereof) or the 
acquisition of such lien as a violation of the provisions of 
this title or any rule or regulation thereunder, or (2) to 
afford a defense to the collection of any debt or obligation or 
the enforcement of any lien by any person who shall have 
acquired such debt, obligation, or lien in good faith for value 
and without actual knowledge of the violation of any provision 
of this title or any rule or regulation thereunder affecting 
the legality of such debt, obligation, or lien.

[LIABILITY OF CONTROLLING PERSONS; PREVENTING COMPLIANCE WITH TITLE

    [Sec. 27. (a) It shall be unlawful for any person, directly 
or indirectly, to cause to be done any act or thing through or 
by means of any other person which it would be unlawful for 
such person to do under the provisions of this title or any 
rule, regulation, or order thereunder.
    [(b) It shall be unlawful for any person without just cause 
to hinder, delay, or obstruct the making, filing, or keeping of 
any information, document, report, record, or account required 
to be made, filed, or kept under any provision of this title or 
any rule, regulation, or order thereunder.

[UNLAWFUL REPRESENTATIONS

    [Sec. 28. It shall be unlawful for any person in issuing, 
selling, offering for sale any security of a registered holding 
company or subsidiary company thereof, to represent or imply in 
any manner whatsoever that such security has been guaranteed, 
sponsored, or recommended for investment by the United States 
or any agency or officer thereof.

[PENALTIES

    [Sec. 29. Any person who willfully violates any provision 
in this title or any rule, regulation, or order thereunder 
(other than an order of the Commission under subsection (b), 
(d), (e), or (f) of section 11), or any person who willfully 
makes any statement or entry in an application, report, 
document, account, or record filed or kept or required to be 
filed or kept under the provisions of this title or any rule, 
regulation, or order thereunder, knowing such statement or 
entry to be false or misleading in any material respect, or any 
person who willfully destroys (except after such time as may be 
prescribed under any rules or regulations under this title), 
mutilates, alters, or by any means, or device falsifies any 
account, correspondence, memorandum, book, paper, or other 
record kept or required to be kept under the provisions of this 
title or any rule, regulation, or order thereunder, shall upon 
conviction be fined not more than $10,000 or imprisoned not 
more than five years, or both, except that in the case of a 
violation of a provision of subsection (a) or (b) of section 4 
by a holding company which is not an individual, the fine 
imposed upon such holding company shall be a fine not exceeding 
$200,000; but no person shall be convicted under this section 
for the violation of any rule, regulation, or order if he 
proves that he had no knowledge of such rule, regulation, or 
order.

[STUDY OF PUBLIC-UTILITY AND INVESTMENT COMPANIES

    [Sec. 30. The Commission is authorized and directed to make 
studies and investigations of public-utility companies, the 
territories served or which can be served by public-utility 
companies, and the manner in which the same are or can be 
served, to determine the sizes, types, and locations of public-
utility companies which do or can operate most economically and 
efficiently in the public interest, in the interest of 
investors and consumers, and in furtherance of a wider and more 
economical use of gas and electric energy; upon the basis of 
such investigations and studies the Commission shall make 
public from time to time its recommendations as to the type and 
size of geographically and economically integrated public-
utility systems which, having regard for the nature and 
character of the locality served, can best promote and 
harmonize the interests of the public, the investor, and the 
consumer.

[HIRING AND LEASING AUTHORITY OF THE COMMISSION

    [Sec. 31. The provisions of section 4(b) of the Securities 
Exchange Act of 1934 shall be applicable with respect to the 
power of the Commission--
          [(1) to appoint and fix the compensation of such 
        employees as may be necessary for carrying out its 
        functions under this title, and
          [(2) to lease and allocate such real property as may 
        be necessary for carrying out its functions under this 
        title.

[SEC. 32. EXEMPT WHOLESALE GENERATORS.

    [(a) Definitions.--For purposes of this section--
          [(1) Exempt wholesale generator.--The term ``exempt 
        wholesale generator'' means any person determined by 
        the Federal Energy Regulatory Commission to be engaged 
        directly, or indirectly through one or more affiliates 
        as defined in section 2(a)(11)(B), and exclusively in 
        the business of owning or operating, or both owning and 
        operating, all or part of one or more eligible 
        facilities and selling electric energy at wholesale. No 
        person shall be deemed to be an exempt wholesale 
        generator under this section unless such person has 
        applied to the Federal Energy Regulatory Commission for 
        a determination under this paragraph. A person applying 
        in good faith for such a determination shall be deemed 
        an exempt wholesale generator under this section, with 
        all of the exemptions provided by this section, until 
        the Federal Energy Regulatory Commission makes such 
        determination. The Federal Energy Regulatory Commission 
        shall make such determination within 60 days of its 
        receipt of such application and shall notify the 
        Commission whenever a determination is made under this 
        paragraph that any person is an exempt wholesale 
        generator. Not later than 12 months after the date of 
        enactment of this section, the Federal Energy 
        Regulatory Commission shall promulgate rules 
        implementing the provisions of this paragraph. 
        Applications for determination filed after the 
        effective date of such rules shall be subject thereto.
          [(2) Eligible facility.--The term ``eligible 
        facility'' means a facility, wherever located, which is 
        either--
                  [(A) used for the generation of electric 
                energy exclusively for sale at wholesale, or
                  [(B) used for the generation of electric 
                energy and leased to one or more public utility 
                companies; Provided, That any such lease shall 
                be treated as a sale of electric energy at 
                wholesale for purposes of sections 205 and 206 
                of the Federal Power Act.
Such term shall not include any facility for which consent is 
required under subsection (c) if such consent has not been 
obtained. Such term includes interconnecting transmission 
facilities necessary to effect a sale of electric energyat 
wholesale. For purposes of this paragraph, the term ``facility'' may 
include a portion of a facility subject to the limitations of 
subsection (d) and shall include a facility the construction of which 
has not been commenced or completed.
          [(3) Sale of electric energy at wholesale.--The term 
        ``sale of electric energy at wholesale'' shall have the 
        same meaning as provided in section 201(d) of the 
        Federal Power Act (16 U.S.C. 824(d)).
          [(4) Retail rates and charges.--The term ``retail 
        rates and charges'' means rates and charges for the 
        sale of electric energy directly to consumers.
    [(b) Foreign Retail Sales.--Notwithstanding paragraphs (1) 
and (2) of subsection (a), retail sales of electric energy 
produced by a facility located in a foreign country shall not 
prevent such facility from being an eligible facility, or 
prevent a person owning or operating, or both owning and 
operating, such facility from being an exempt wholesale 
generator if none of the electric energy generated by such 
facility is sold to consumers in the United States.
    [(c) State Consent for Existing Rate-Based Facilities.--If 
a rate or charge for, or in connection with, the construction 
of a facility, or for electric energy produced by a facility 
(other than any portion of a rate or charge which represents 
recovery of the cost of a wholesale rate or charge) was in 
effect under the laws of any State as of the date of enactment 
of this section, in order for the facility to be considered an 
eligible facility, every State commission having jurisdiction 
over any such rate or charge must make a specific determination 
that allowing such facility to be an eligible facility (1) will 
benefit consumers, (2) is in the public interest, and (3) does 
not violate State law; Provided, That in the case of such a 
rate or charge which is a rate or charge of an affiliate of a 
registered holding company:
          [(A) such determination with respect to the facility 
        in question shall be required from every State 
        commission having jurisdiction over the retail rates 
        and charges of the affiliates of such registered 
        holding company; and
          [(B) the approval of the Commission under this Act 
        shall not be required for the transfer of the facility 
        to an exempt wholesale generator.
    [(d) Hybrids.--(1) No exempt wholesale generator may own or 
operate a portion of any facility if any other portion of the 
facility is owned or operated by an electric utility company 
that is an affiliate or associate company of such exempt 
wholesale generator.
      [(2) Eligible facility.--Notwithstanding paragraph (1), 
an exempt wholesale generator may own or operate a portion of a 
facility identified in paragraph (1) if such portion has become 
an eligible facility as a result of the operation of subsection 
(c).
    [(e) Exemption of EWGS.--An exempt wholesale generator 
shall not be considered an electric utility company under 
section 2(a)(3) of this Act and, whether or not a subsidiary 
company, an affiliate, or an associate company of a holding 
company, an exempt wholesale generator shall be exempt from all 
provisions of this Act.
    [(f) Ownership of EWGS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company 
that is exempt under section 3 of this Act shall be permitted, 
without condition or limitation under this Act, to acquire and 
maintain an interest in the business of one or more exempt 
wholesale generators.
    [(g) Ownership of EWGS by Registered Holding Companies.--
Notwithstanding any provision of this Act and the Commission's 
jurisdiction as provided under subsection (h) of this section, 
a registered holding company shall be permitted (without the 
need to apply for, or receive, approval from the Commission, 
and otherwise without condition under this Act) to acquire and 
hold the securities, or an interest in the business, of one or 
more exempt wholesale generators.
    [(h) Financing and Other Relationships Between EWGS and 
Registered Holding Companies.--The issuance of securities by a 
registered holding company for purposes of financing the 
acquisition of an exempt wholesale generator, the guarantee of 
securities of an exempt wholesale generator by a registered 
holding company, the entering into service, sales or 
construction contracts, and the creation or maintenance of any 
other relationship in addition to that described in subsection 
(g) between an exempt wholesale generator and a registered 
holding company, its affiliates and associate companies, shall 
remain subject to the jurisdiction of the Commission under this 
Act: Provided, That
          [(1) section 11 of this Act shall not prohibit the 
        ownership of an interest in the business of one or more 
        exempt wholesale generators by a registered holding 
        company (regardless of where facilities owned or 
        operated by such exempt wholesale generators are 
        located), and such ownership by a registered holding 
        company shall be deemed consistent with the operation 
        of an integrated public utility system;
          [(2) the ownership of an interest in the business of 
        one or more exempt wholesale generators by a registered 
        holding company (regardless of where facilities owned 
        or operated by such exempt wholesale generators are 
        located) shall be considered as reasonably incidental, 
        or economically necessary or appropriate, to the 
        operations of an integrated public utility system;
          [(3) in determining whether to approve (A) the issue 
        or sale of a security by a registered holding company 
        for purposes of financing the acquisition of an exempt 
        wholesale generator, or (B) the guarantee of a security 
        of an exempt wholesale generator by a registered 
        holding company, the Commission shall not make a 
        finding that such security is not reasonably adapted to 
        the earning power of such company or to the security 
        structure of such company and other companies in the 
        same holding company system, or that the circumstances 
        are such as to constitute the making of such guarantee 
        an improper risk for such company, unless the 
        Commission first finds that the issue or sale of such 
        security, or the making of the guarantee, would have a 
        substantial adverse impact on the financial integrity 
        of the registered holding company system;
          [(4) in determining whether to approve (A) the issue 
        or sale of a security by a registered holding company 
        for purposes other than the acquisition of an exempt 
        wholesale generator, or (B) other transactions by such 
        registered holding company or by its subsidiaries other 
        than with respect to exempt wholesale generators, the 
        Commission shall not consider the effect of the 
        capitalization or earnings of any subsidiary which is 
        an exempt wholesale generator upon the registered 
        holding company system, unless the approval of the 
        issue or sale or other transaction, together with the 
        effect of such capitalization and earnings, would have 
        a substantial adverse impact on the financial integrity 
        of the registered holding company system;
          [(5) the Commission shall make its decision under 
        paragraph (3) to approve or disapprove the issue or 
        sale of a security or the guarantee of a security 
        within 120 days of the filing of a declaration 
        concerning such issue, sale or guarantee; and
          [(6) the Commission shall promulgate regulations with 
        respect to the actions which would be considered, for 
        purposes of this subsection, to have a substantial 
        adverse impact on the financial integrity of the 
        registered holding company system; such regulations 
        shall ensure that the action has no adverse impact on 
        any utility subsidiary or its customers, or on the 
        ability of State commissions to protect such subsidiary 
        or customers, and shall take into account the amount 
        and type of capital invested in exempt wholesale 
        generators, the ratio of such capital to the total 
        capital invested in utility operations, the 
        availability of books and records, and the financial 
        and operating experience of the registered holding 
        company and the exempt wholesale generator; the 
        Commission shall promulgate such regulations within 6 
        months after the enactment of this section; after such 
        6-month period the Commission shall not approve any 
        actions under paragraph (3), (4) or (5) except in 
        accordance with such issued regulations.
    [(i) Application of Act to Other Eligible Facilities.--In 
the case of any person engaged directly and exclusively in the 
business of owning or operating (or both owning and operating) 
all or part of one or more eligible facilities, an advisory 
letter issued by the Commission staff under this Act after the 
date of enactment of this section, or an order issued by the 
Commission under this Act after the date of enactment of this 
section, shall not be required for the purpose, or have the 
effect, of exempting such person from treatment as an electric 
utility company under section 2(a)(3) or exempting such person 
from any provision of this Act.
    [(j) Ownership of Exempt Wholesale Generators and 
Qualifying Facilities.--The ownership by a person of one or 
more exempt wholesale generators shall not result in such 
person being considered as being primarily engaged in the 
generation or sale of electric power within the meaning of 
sections 3(17)(C)(ii) and 3(18)(B)(ii) of the Federal Power Act 
(16 U.S.C. 796(17)(C)(ii) and 796(18)(B)(ii)).
    [(k) Protection Against Abusive Affiliate Transactions.--
          [(1) Prohibition.--After the date of enactment of 
        this section, an electric utility company may not enter 
        into a contract to purchase electric energy at 
        wholesale from an exempt wholesale generator if the 
        exempt wholesale generator is an affiliate or associate 
        company of the electric utility company.
          [(2) State authority to exempt from prohibition.--
        Notwithstanding paragraph (1), an electric utility 
        company may enter into a contract to purchase electric 
        energy at wholesale from an exempt wholesale generator 
        that is an affiliate or associate company of the 
        electric utility company--
                  [(A) if every State commission having 
                jurisdiction over the retail rates of such 
                electric utility company makes each of the 
                following specific determinations in advance of 
                the electric utility company entering into such 
                contract:
                          [(i) A determination that such 
                        commission has sufficient regulatory 
                        authority, resources and access to 
                        books and records of the electric 
                        utility company and any relevant 
                        associate, affiliate or subsidiary 
                        company to exercise its duties under 
                        this subparagraph.
                          [(ii) A determination that the 
                        transaction--
                                  [(I) will benefit consumers,
                                  [(II) does not violate any 
                                State law (including where 
                                applicable, least cost 
                                planning),
                                  [(III) would not provide the 
                                exempt wholesale generator any 
                                unfair competitive advantage by 
                                virtue of its affiliation or 
                                association with the electric 
                                utility company, and
                                  [(IV) is in the public 
                                interest; or
                  [(B) if such electric utility company is not 
                subject to State commission retail rate 
                regulation and the purchased electric energy:
                          [(i) would not be resold to any 
                        affiliate or associate company, or
                          [(ii) the purchased electric energy 
                        would be resold to an affiliate or 
                        associate company and every State 
                        commission having jurisdiction over the 
                        retail rates of such affiliate or 
                        associate company makes each of the 
                        determinations provided under 
                        subparagraph (A), including the 
                        determination concerning a State 
                        commission's duties.
    [(l) Reciprocal Arrangements Prohibited.--Reciprocal 
arrangements among companies that are not affiliates or 
associate companies of each other that are entered into in 
order to avoid the provisions of this section are prohibited.

[SEC. 33. TREATMENT OF FOREIGN UTILITIES.

    [(a) Exemptions for Foreign Utility Companies.--
          [(1) In general.--A foreign utility company shall be 
        exempt from all of the provisions of this Act, except 
        as otherwise provided under this section, and shall 
        not, for any purpose under this Act, be deemed to be a 
        public utility company under section 2(a)(5), 
        notwithstanding that the foreign utility company may be 
        a subsidiary company, an affiliate, or an associate 
        company of a holding company or of a public utility 
        company.
          [(2) State commission certification.--Section 1(a)(1) 
        shall not apply or be effective unless every State 
        commission having jurisdiction over the retail electric 
        or gas rates of a public utility company that is an 
        associate company or an affiliate of a company 
        otherwise exempted under section (a)(1) (other than a 
        public utility company that is an associate company or 
        an affiliate of a registered holding company) has 
        certified to the Commission that it has the authority 
        and resources to protect ratepayers subject to its 
        jurisdiction and that it intends to exercise its 
        authority. Such certification, upon the filing of a 
        notice by such State commission, may be revised or 
        withdrawn by the State commission prospectively as to 
        any future acquisition. The requirement of State 
        certification shall be deemed satisfied if the relevant 
        State commission had, prior to the date of enactment of 
        this section, on the basis of prescribed conditions of 
        general applicability; determine that ratepayers of a 
        public utility company are adequately insulated from 
        the effects of diversification and the diversification 
        would not impair the ability of the State commission to 
        regulate effectively the operations of such company.
          [(3) Definition.--For purposes of this section, the 
        term ``foreign utility company'' means any company 
        that--
                  [(A) owns or operates facilities that are not 
                located in any State and that are used for the 
                generation, transmission, or distribution of 
                electric energy for sale or the distribution at 
                retail of natural or manufactured gas for heat, 
                light, or power, if such company--
                          [(i) derives no part of its income, 
                        directly or indirectly, from the 
                        generation, transmission, or 
                        distribution of electric energy for 
                        sale or the distribution at retail of 
                        natural or manufactured gas for heat, 
                        light, or power, within the United 
                        States; and
                          [(ii) neither the company nor any of 
                        its subsidiary companies is a public 
                        utility company operating in the United 
                        States; and
                  [(B) provides notice to the Commission, in 
                such form as the Commission may prescribe, that 
                such company is a foreign utility company.
    [(b) Ownership of Foreign Utility Companies by Exempt 
Holding Companies.--Notwithstanding any provision of this Act 
except as provided under this section, a holding company that 
is exempt under section 3 of the Act shall be permitted without 
condition or limitation under the Act to acquire and maintain 
an interest in the business of one or more foreign utility 
companies.
    [(c) Registered Holding Companies.--
          [(1) Ownership of foreign utility companies by 
        registered holding companies.--Notwithstanding any 
        provision of this Act except as otherwise provided 
        under this section, a registered holding company shall 
        be permitted as of the date of enactment of this 
        section (without the need to apply for, or receive 
        approval from the Commission) to acquire and hold the 
        securities or an interest in the business, of one or 
        more foreign utility companies. The Commission shall 
        promulgate rules or regulations regarding registered 
        holding companies' acquisition of interests in foreign 
        utility companies which shall provide for the 
        protection of the customers of a public utility company 
        which is an associate company of a foreign utility 
        company and the maintenance of the financial integrity 
        of the registered holding company system.
          [(2) Issuance of securities.--The issuance of 
        securities by a registered holding company for purposes 
        of financing the acquisition of a foreign utility 
        company, the guarantee of securities of a foreign 
        utility company by a registered holding company, the 
        entering into service, sales, or construction 
        contracts, and the creation or maintenance of any other 
        relationship between a foreign utility company and a 
        registered holding company, its affiliates and 
        associate companies, shall remain subject to the 
        jurisdiction of the Commission under this Act (unless 
        otherwise exempted under this Act, in the case of a 
        transaction with an affiliate or associate company 
        located outside of the United States). Any State 
        commission with jurisdiction over the retail rates of a 
        public utility company which is part of a registered 
        holding company system may make such recommendations to 
        the Commission regarding the registered holding 
        company's relationship to a foreign utility company, 
        and the Commission shall reasonably and fully consider 
        such State recommendation.
          [(3) Construction.--Any interest in the business of 1 
        or more foreign utility companies, or 1 or more 
        companies organized exclusively to own, directly or 
        indirectly, the securities or other interest in a 
        foreign utility company, shall for all purposes of his 
        Act, be considered to be--
                  [(A) consistent with the operation of a 
                single integrated public utility system, within 
                the meaning of section 11; and
                  [(B) reasonably incidental, or economically 
                necessary or appropriate, to the operations of 
                an integrated public utility system, within the 
                meaning of section 11.
    [(d) Effect on Existing Law; No State Preemption.--Nothing 
in this section shall--
          [(1) preclude any person from qualifying for or 
        maintaining any exemption otherwise provided for under 
        this Act or the rules, regulations, or orders 
        promulgated or issued under this Act; or
          [(2) be deemed or construed to limit the authority of 
        any State (including any State regulatory authority) 
        with respect to--
                  [(A) any public utility company or holding 
                company subject to such State's jurisdiction; 
                or
                  [(B) any transaction between any foreign 
                utility company (or any affiliate or associate 
                company thereof) and any public utility company 
                or holding company subject to such State's 
                jurisdiction.
    [(e) Reporting Requirements.--
          [(1) Filing of reports.--A public utility company 
        that is an associate company of a foreign utility 
        company shall file with the Commission such reports 
        (with respect to such foreign utility company) as the 
        Commission may by rules, regulations, or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers.
          [(2) Notice of acquisitions.--Not later than 30 days 
        after the consummation of the acquisition of an 
        interest in a foreign utility company by an associate 
        company of a public utility company that is subject to 
        the jurisdiction of a State commission with respect to 
        its retail electric or gas rates or by such public 
        utility company, such associate company or such public 
        utility company, shall provide notice of such 
        acquisition to every State commission having 
        jurisdiction over the retail electric or gas rates of 
        such public utility company, in such form as may be 
        prescribed by the State commission.
    [(f) Prohibition on Assumption of Liabilities.--
          [(1) In general.--No public utility company that is 
        subject to the jurisdiction of a State commission with 
        respect to its retail electric or gas rates shall issue 
        any security for the purpose of financing the 
        acquisition, or for the purposes of financing the 
        ownership or operation, of a foreign utility company, 
        nor shall any such pubic utility company assume any 
        obligation or liability as guarantor, endorser, surety, 
        or otherwise in respect of any security of a foreign 
        utility company.
          [(2) Exception for holding companies which are 
        predominantly public utility companies.--Subsection 
        (f)(1) shall not apply if:
                  [(A) The public utility company that is 
                subject to the jurisdiction of a State 
                commission with respect to its retail electric 
                or gas rates is a holding company and is not an 
                affiliate under section 2(a)(11)(B) of another 
                holding company or is not subject to regulation 
                as a holding company and has no affiliate as 
                defined in section 2(a)(11)(A) that is a pubic 
                utility company subject to the jurisdiction of 
                a State commission with respect to its retail 
                electric or gas rates; and
                  [(B) each State commission having 
                jurisdiction with respect to the retail 
                electric and gas rates of such public utility 
                company expressly permits such public utility 
                to engage in a transaction otherwise prohibited 
                under section 1
                  [(C) the transaction (aggregated with all 
                other then outstanding transactions exempted 
                under this subsection) does not exceed 5 per 
                centum of the then-outstanding total 
                capitalization of the public utility.
    [(g) Prohibition on Pledging or Encumbering Utility 
Assets.--No public utility company that is subject to the 
jurisdiction of State commission with respect to its retail 
electric or gas rates shall pledge or encumber any utility 
assets or utility assets of any subsidiary thereof for the 
benefit of an associate foreign utility company.

[SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.

    [(a) Definitions.--For purposes of this section--
          [(1) Exempt telecommunications company.--The term 
        ``exempt telecommunications company'' means any person 
        determined by the Federal Communications Commission to 
        be engaged directly or indirectly, wherever located, 
        through one or more affiliates (as defined in section 
        2(a)(11)(B)), and exclusively in the businesses of 
        providing--
                  [(A) telecommunications services;
                  [(B) information services;
                  [(C) other services or products subject to 
                the jurisdiction of the Federal Communications 
                Commission; or
                  [(D) products or services that are related or 
                incidental to the provision of a product or 
                service described in subparagraph (A) (B), or 
                (C).
No person shall be deemed to be an exempt telecommunications 
company under this section unless such person has applied to 
the Federal Communications Commission for a determination under 
this paragraph. A person applying in good faith for such a 
determination shall be deemed an exempt telecommunications 
company under this section, with all of theexemptions provided 
by this section, until the Federal Communications Commission makes such 
determination. The Federal Communications Commission shall make such 
determination within 60 days of its receipt of any such application 
filed after the enactment of this section and shall notify the 
Commission whenever a determination is made under this paragraph that 
any person is an exempt telecommunications company. Not later than 12 
months after the date of enactment of this section, the Federal 
Communications Commission shall promulgate rules implementing the 
provisions of this paragraph which shall be applicable to applications 
filed under this paragraph after the effective date of such rules.
          [(2) Other Terms.--For purposes of this section, the 
        terms ``telecommunications services'' and ``information 
        services'' shall have the same meanings as provided in 
        the Communications Act of 1934.
    [(b) State Consent for Sale of Existing Rate-Based 
Facilities.--If a rate or charge for the sale of electric 
energy or natural gas (other than any portion of a rate or 
charge which represents recovery of the cost of a wholesale 
rate or charge) for, or in connection with, assets of a public 
utility company that is an associate company or affiliate of a 
registered holding company was in effect under the laws of any 
State as of December 19, 1995, the public utility company 
owning such assets may not sell such assets to an exempt 
telecommunications company that is an associate company or 
affiliate unless State commissions having jurisdiction over 
such public utility company approve such sale. Nothing in this 
subsection shall preempt the otherwise applicable authority of 
any State to approve or disapprove the sale of such assets. The 
approval of the Commission under this Act shall not be required 
for the sale of assets as provided in this subsection.
    [(c) Ownership of ETCS by Exempt Holding Companies.--
Notwithstanding any provision of this Act, a holding company 
that is exempt under section 3 of this Act shall be permitted, 
without condition or limitation under this Act, to acquire and 
maintain an interest in the business of one or more exempt 
telecommunications companies.
    [(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, a registered holding 
company shall be permitted (without the need to apply for, or 
receive, approval from the Commission, and otherwise without 
condition under this Act) to acquire and hold the securities, 
or an interest in the business, of one or more exempt 
telecommunications companies.
    [(e) Financing and Other Relationships Between ETCS and 
Registered Holding Companies.--The relationship between an 
exempt telecommunications company and a registered holding 
company, its affiliates and associate companies, shall remain 
subject to the jurisdiction of the Commission under this Act: 
Provided, That--
          [(1) section 11 of this Act shall not prohibit the 
        ownership of an interest in the business of one or more 
        exempt telecommunications companies by a registered 
        holding company (regardless of activities engaged in or 
        where facilities owned or operated by such exempt 
        telecommunications companies are located), and such 
        ownership by a registered holding company shall be 
        deemed consistent with the operation of an integrated 
        public utility system;
          [(2) the ownership of an interest in the business of 
        one or more exempt telecommunications companies by a 
        registered holding company (regardless of activities 
        engaged in or where facilities owned or operated by 
        such exempt telecommunications companies are located) 
        shall be considered as reasonably incidental, or 
        economically necessary or appropriate, to the 
        operations of an integrated public utility system;
          [(3) the Commission shall have no jurisdiction under 
        this Act over, and there shall be no restriction or 
        approval required under this Act with respect to (A) 
        the issue or sale of a security by a registered holding 
        company for purposes of financing the acquisition of an 
        exempt telecommunications company, or (B) the guarantee 
        of a security of an exempt telecommunications company 
        by a registered holding company; and
          [(4) except for costs that should be fairly and 
        equitably allocated among companies that are associate 
        companies of a registered holding company, the 
        Commission shall have no jurisdiction under this Act 
        over the sales, service, and construction contracts 
        between an exempt telecommunications company and a 
        registered holding company, its affiliates and 
        associate companies.
    [(f) Reporting Obligations Concerning Investments and 
Activities of Registered Public-Utility Holding Company 
Systems.--
          [(1) Obligations To Report Information.--Any 
        registered holding company or subsidiary thereof that 
        acquires or holds the securities, or an interest in the 
        business, of an exempt telecommunications company shall 
        file with the Commission such information as the 
        Commission, by rule, may prescribe concern
                  [(A) investments and activities by the 
                registered holding company, or any subsidiary 
                thereof, with respect to exempt 
                telecommunications companies, and
                  [(B) any activities of an exempt 
                telecommunications company within the holding 
                company system, that are reasonably likely to 
                have a material impact on the financial or 
                operational condition of the holding company 
                system.
          [(2) Authority to require additional information.--
        If, based on reports provided to the Commission 
        pursuant to paragraph (1) of this subsection or other 
        available information, the Commission reasonably 
        concludes that it has concerns regarding the financial 
        or operational condition of any registered holding 
        company or any subsidiary thereof (including an exempt 
        telecommunications company), the Commission may require 
        such registered holding company to make additional 
        reports, and provide additional information.
          [(3) Authority to limit disclosure of information.--
        Notwithstanding any other provision of law, the 
        Commission shall not be compelled to disclose any 
        information required to be reported under this 
        subsection. Nothing in this subsection shall authorize 
        the Commission to withhold the information from 
        Congress, or prevent the Commission from complying with 
        a request for information from any other Federal or 
        State department or agency requesting the information 
        for purposes within the scope of its jurisdiction. For 
        purposes of section 552 of title 5, United States Code, 
        this subsection shall be considered a statute described 
        in subsection (b)(3)(B) of such section 552.
    [(g) Assumption of Liabilities.--Any public utility company 
that is an associate company, or an affiliate, of a registered 
holding company and that is subject to the jurisdiction of a 
State commission with respect to its retail electric or gas 
rates shall not issue any security for the purpose of financing 
the acquisition, ownership, or operation of an exempt 
telecommunications company. Any public utility company that is 
an associate company, or an affiliate, of a registered holding 
company and that is subject to the jurisdiction of a State 
commission with respect to its retail electric or gas rates 
shall not assume any obligation or liability as guarantor, 
endorser, surety, or otherwise by the public utility company in 
respect of an security of an exempt telecommunications company.
    [(h) Pledging or Mortgaging of Assets.--Any public utility 
company that is an associate company, or affiliate, of a 
registered holding company and that is subject to the 
jurisdiction of a State commission with respect to its retail 
electric or gas rates shall not pledge, mortgage, or otherwise 
use as collateral any assets of the public utility company or 
assets of any subsidiary company thereof for be benefit of an 
exempt telecommunications company.
    [(i) Protection Against Abusive Affiliate Transactions.--A 
public utility company may enter into a contract to purchase 
services or products described in subsection (a)(1) from an 
exempt telecommunications company that is an affiliate or 
associate company of the public utility company only if--
          [(1) every State commission having jurisdiction over 
        the retail rates of such public utility company 
        approves such contract, or
          [(2) such public utility company is not subject to 
        State commission retail rate regulation and the 
        purchased services or product--
                  [(A) would not be resold to any affiliate or 
                associate company; or
                  [(B) would be resold to an affiliate or 
                associate company and every State commission 
                having jurisdiction over the retail rates of 
                such affiliate or associate company makes the 
                determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case 
in which the State or the State commission concerned publishes 
a notice that the State or State commission waives its 
authority under this subsection.
    [(j) Nonpreemption of Rate Authority.--Nothing in this Act 
shall preclude the Federal Energy Regulatory Commission or a 
State commission from exercising its jurisdiction under 
otherwise applicable law to determine whether a public utility 
company may recover in rates the costs of products or services 
purchased from or sold to an associate company or affiliate 
that is an exempt telecommunications company, regardless of 
whether such costs are incurred through the direct or indirect 
purchase or sale of products or services from such associate 
company or affiliate.
    [(k) Reciprocal Arrangements Prohibited.--Reciprocal 
arrangements among companies that are not affiliates or 
associate companies of each other that are entered into in 
order to avoid the provisions of this section are prohibited.
    [(l) Books and Records.--(1) Upon written order of a State 
commission, a State commission may examine the books, accounts, 
memoranda, contracts, and records of--
          [(A) a public utility company subject to its 
        regulatory authority under State law;
          [(B) any exempt telecommunications company selling 
        products or services to such public utility company or 
        to an associate company of such public utility company; 
        and
          [(C) any associate company or affiliate of an exempt 
        telecommunications company which sells products or 
        services to a public utility company referred to in 
        subparagraph (A),
wherever located, if such examination is required for the 
effective discharge of the State commission's regulatory 
responsibilities affecting the provision of electric or gas 
service in connection with the activities of such exempt 
telecommunications company.
    [(2) Where a State commission issues an order pursuant to 
paragraph (1), the State commission shall not publicly disclose 
trade secrets or sensitive commercial information.
    [(3) Any United States district court located in the State 
in which the State commission referred to in paragraph (1) is 
located shall have jurisdiction to enforce compliance with this 
subsection.
    [(4) Nothing in this section shall--
          [(A) preempt applicable State law concerning the 
        provision of records and other information; or
          [(B) in any way limit rights to obtain records and 
        other information under Federal law, contracts, or 
        otherwise.
    [(m) Independent Audit Authority for State Commissions.--
          [(1) State may order audit.--Any State commission 
        with jurisdiction over a public utility company that--
                  [(A) is an associate company of a registered 
                holding company; and
                  [(B) transacts business, directly or 
                indirectly, with a subsidiary company, an 
                affiliate or an associate company that is an 
                exempt telecommunications company, may order an 
                independent audit to be performed, no more 
                frequently than on an annual basis, of all 
                matters deemed relevant by the selected auditor 
                that reasonably relate to retail rates: 
                Provided, That such matters relate, directly or 
                indirectly, to transactions or transfers 
                between the public utility company subject to 
                its jurisdiction and such exempt 
                telecommunications company.
          [(2) Selection of firm to conduct audit.--(A) If a 
        State commission orders an audit in accordance with 
        paragraph (1), the public utility company and the State 
        commission shall jointly select, within 60 days, a firm 
        to perform the audit. The firm selected to perform the 
        audit shall possess demonstrated qualifications 
        relating to--
                  [(i) competency, including adequate technical 
                training and professional proficiency in each 
                discipline necessary to carry out the audit; 
                and
                  [(ii) independence and objectivity, including 
                that the firm be free from personal or external 
                impairments to independence, and should assume 
                an independent position with the State 
                commission and auditee, making certain that the 
                audit is based upon an impartial consideration 
                of all pertinent facts and responsible 
                opinions.
          [(B) The public utility company and the exempt 
        telecommunications company shall cooperate fully with 
        all reasonable requests necessary to perform the audit 
        and the public utility company shall bear all costs of 
        having the audit performed.
          [(3) Availability of auditor's report.--The auditor's 
        report shall be provided to the State commission not 
        later than 6 months after the selection of the auditor, 
        and provided to the public utility company not later 
        than 60 days thereafter.
    [(n) Applicability of Telecommunications Regulation.--
Nothing in this section shall affect the authority of the 
Federal Communications Commission under the Communications Act 
of 1934, or the authority of State commissions under State laws 
concerning the provision of telecommunications services, to 
regulate the activities of an exempt telecommunications 
company.

[SEPARABILITY OF PROVISIONS

    [Sec. 35. If any provision of this title or the application 
of such provision to any person or circumstances shall be held 
invalid, the remainder of the title and the application of such 
provision to persons or circumstances other than those as to 
which it is held invalid shall not be affected thereby.

[SHORT TITLE

    [Sec. 36. This title may be cited as the Public Utility 
Holding Company Act of 1935''. ]

 PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978--PUBLIC LAW 95-617, AS 
AMENDED (16 U.S.C. 2601 ET SEQ.)

           *       *       *       *       *       *       *

SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING 
                    STANDARDS.

           *       *       *       *       *       *       *

    (d) Establishment.--The following Federal standards are 
hereby established:

           *       *       *       *       *       *       *

          (11) Net metering.--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.
          (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 the planned capacity obligations 
                        of a utility.
                  (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).
          (15) Interconnection.--(A) In this paragraph, the 
        term ``interconnection service'' means service to an 
        electric consumer by which an on-site generating 
        facility on the premises of the electric consumer is 
        connected to the local distribution facilities.
          (B)(i) Each electric utility shall make available, on 
        request, interconnection service to any electric 
        consumer that the electric utility serves.
          (ii) Interconnection services shall be made available 
        under clause (i) based on the standards developed by 
        the Institute of Electrical and Electronics Engineers, 
        entitled IEEE Standard 1547 for Interconnecting 
        Distributed Resources with Electric Power Systems (or 
        successor standards).
          (C)(i) Electric utilities shall establish agreements 
        and procedures providing that the interconnection 
        services made available under subparagraph (B) promote 
        current best practices of interconnection for 
        distributed generation, including practices stipulated 
        in model codes adopted by associations of State 
        regulatory agencies.
          (ii) Any agreements and procedures established under 
        clause (i) shall be just and reasonable and not unduly 
        discriminatory or preferential.

           *       *       *       *       *       *       *

    (e) Energy Efficiency Resource Programs.--
          (1) Definitions.--In this subsection:
                  (A) Demand baseline.--The term ``demand 
                baseline'' means the baseline determined by the 
                Secretary for an appropriate period preceding 
                the implementation of an energy efficiency 
                resource program.
                  (B) Energy efficiency resource programs.--The 
                term ``energy efficiency resource program'' 
                means an energy efficiency or other demand 
                reduction program that is designed to reduce 
                annual electricity consumption or peak demand 
                of consumers served by an electric utility by a 
                percentage of the demand baseline of the 
                utility that is equal to not less than 0.75 
                percent of the number of years during which the 
                program is in effect.
          (2) Public hearings; determinations.--
                  (A) As soon as practicable after the date of 
                enactment of this subsection, but not later 
                than 3 years after that date, each State 
                regulatory authority (with respect to each 
                electric utility over which the State has 
                ratemaking authority) and each nonregulated 
                electric utility shall, after notice, conduct a 
                public hearing on the benefits and feasibility 
                of implementing an energy efficiency resource 
                program.
                  (B) A State regulatory authority or 
                nonregulated utility shall implement an energy 
                efficiency resource program if, on the basis of 
                a hearing under subparagraph (A), the State 
                regulatory authority or nonregulated utility 
                determines that the program would--
                          (i) benefit end-use customers;
                          (ii) be cost-effective based on total 
                        resource cost;
                          (iii) serve the public welfare; and 
                        (iv) be feasible to implement.
          (3) Implementation.--
                  (A) State regulatory authorities.--If a State 
                regulatory authority makes a determination 
                under paragraph (2)(B), the State regulatory 
                authority shall--
                          (i) require each electric utility 
                        over which the State has ratemaking 
                        authority to implement an energy 
                        efficiency resource program; and
                          (ii) allow such a utility to recover 
                        any expenditures incurred by the 
                        utility in implementing the energy 
                        efficiency resource program.
                  (B) Nonregulated electric utilities.--If a 
                nonregulated electric utility makes a 
                determination under paragraph (2)(B), the 
                utility shall implement an energy efficiency 
                resource program.
          (4) Updating regulations.--A State regulatory 
        authority or nonregulated utility may update 
        periodically a determination under paragraph (2)(B) to 
        determine whether an energy efficiency resource program 
        should be--
                  (A) continued;,
                  (B) modified; or
                  (C) terminated.
    (5) Exception.--Paragraph (2) shall not apply to a State 
regulatory authority (or any nonregulated electric utility 
operating in the State) that demonstrates to the Secretary that 
an energy efficiency resource program is in effect in the 
State.

           *       *       *       *       *       *       *

SEC. 112. OBLIGATIONS TO CONSIDER AND DETERMINE.

           *       *       *       *       *       *       *

    (b) Time Limitations.--(1) Not later than 2 years after the 
date of the enactment of this Act (or after the enactment of 
the Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), 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 section 111(d).
    (2) Not later than three years after the date of the 
enactment of this Act (or after the enactment of the 
Comprehensive National Energy Policy Act in the case of 
standards under paragraphs (7), (8), and (9) of section 
111(d)), 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 
section 111(d).
    (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).
    (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).
    (5)(A) Not later than 1 year after the date of enactment of 
this paragraph, each State regulatory authority (with respect 
to each electric utility for which the State regulatory 
authority has ratemaking authority) and each nonregulated 
utility shall, with respect to the standard established by 
section 111(d)(15)--
          (i) commence the consideration under section 111(a); 
        or
          (ii) set a hearing date for the consideration.
    (B) Not later than 2 years after the date of enactment of 
this paragraph, each State regulatory authority (with respect 
to each electric utility for which the State regulatory 
authority has ratemaking authority) and each nonregulated 
electric utility shall, with respect to the standard 
established by section 111(d)(15), complete the consideration 
and make the determination under section 111(a).
    (c) Failure To Comply.--Each State regulatory authority 
(with respect to each electric utility for which it has 
ratemaking authority) and each nonregulated electric utility 
shall undertake the consideration, and make the determination, 
referred to in section 111 with respect to each standard 
established by section 111(d) in the first rate proceeding 
commenced after the date three years after the date of 
enactment of this Act respecting the rates of such utility if 
such State regulatory authority or nonregulated electric 
utility has not, before such date, complied with subsection 
(b)(2) with respect to such standard. 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). 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). In 
the case of the standard established by paragraph (15) 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 (15).
    (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.
    (e) Prior State Actions.--Subsections (b) and (c) of this 
section shall not apply to the standard established by 
paragraph (14) or (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 
        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.

           *       *       *       *       *       *       *

SEC. 115. SPECIAL RULES FOR STANDARDS.

           *       *       *       *       *       *       *

    (b) Time-of-Day Rates.--In undertaking the consideration 
and making the determination required under section 111 with 
respect to the standard for time-of-day rates established by 
section 111(d)(3) and the standard for time-based metering and 
communications established by section 111(d)(14) a time-of-day 
rate charged by an electric utility for providing electric 
service to each class of electric consumers shall be determined 
to be cost-effective with respect to each such class if the 
long-run benefits of such rate to the electric utility and its 
electric consumers in the class concerned are likely to exceed 
the metering and communications costs and other costs 
associated with the use of such rates.

           *       *       *       *       *       *       *

    (i) Time-Based Metering and Communications.--In making a 
determination with respectto 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.

           *       *       *       *       *       *       *

SEC. 124. PRIOR AND PENDING PROCEEDINGS.

    For purposes of subtitle A and B, and this subtitle, 
proceedings commenced by State regulatory authorities (with 
respect to electric utilities for which it has ratemaking 
authority) and nonregulated electric utilities before the date 
of the enactment of this Act and actions taken before such date 
in such proceedings shall be treated as complying with the 
requirements of subtitles A and B, and this subtitle if such 
proceedings and actions, substantially conform to such 
requirements. For purposes of subtitles A and B, and this 
subtitle, any such proceeding or action commenced before the 
date of enactment of this Act, but not completed before such 
date, shall comply with the requirements of subtitles A and B, 
and this subtitle, to the maximum extent practicable, with 
respect to so much of such proceeding or action as takes place 
after such date, except as otherwise provided in section 
121(c). 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). In the case of the standard 
established by paragraph (14) or (15) 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) or (15).

           *       *       *       *       *       *       *

SEC. 132. RESPONSIBILITIES OF SECRETARY OF ENERGY.

    (a) * * *
          (1) load management techniques and the results of 
        studies and experiments concerning load management 
        techniques;
          (2) developments and innovations in electric utility 
        rate making throughout the United States, including the 
        results of studies and experiments in rate structure 
        and rate reform;
          (3) methods for determining cost of service; [and]
          (4) any other data or information which the Secretary 
        determines would assist such authorities and utilities 
        in carrying out the provisions of this title[.] and
          (5) technologies, techniques, and rate-making methods 
        related to advanced metering and communications and the 
        use of these technologies, techniques and methods in 
        demand response programs.

           *       *       *       *       *       *       *

    (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, 2005.

           *       *       *       *       *       *       *

SEC. 210. COGENERATION AND SMALL, POWER PRODUCTION.

           *       *       *       *       *       *       *

    (n) * * *
    (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 section (n)(1)(A) 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 section (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).

           *       *       *       *       *       *       *

TITLE III--RETAIL POLICIES FOR NATURAL GAS UTILITIES

           *       *       *       *       *       *       *

    Sec. 303. Adoption of certain standards.

           *       *       *       *       *       *       *

    (e) Energy Efficiency Resource Programs.--
          (1) Definitions.--In this subsection:
                  (A) Demand baseline.--The term ``demand 
                baseline'' means the baseline determined by the 
                Secretary for an appropriate period preceding 
                the implementation of an energy efficiency 
                resource program.
                  (B) Energy efficiency resource programs.--The 
                term ``energy efficiency resource program'' 
                means an energy efficiency or other demand 
                reduction program that is designed to reduce 
                annual gas consumption or peak demand of 
                consumers served by a gas utility by a 
                percentage of the demand baseline of the 
                utility that is equal to not less than 0.75 
                percent of the number of years during which the 
                program is in effect.
          (2) Public hearings; determinations.--
                  (A) As soon as practicable after the date of 
                enactment of this subsection, but not later 
                than 3 years after that date, each State 
                regulatory authority (with respect to each gas 
                utility over which the State has ratemaking 
                authority) and each nonregulated gas utility 
                shall, after notice, conduct a public hearing 
                on the benefits and feasibility of implementing 
                an energy efficiency resource program.
                  (B) A State regulatory authority or 
                nonregulated utility shall implement an energy 
                efficiency resource program if, on the basis of 
                a hearing under subparagraph (A), the State 
                regulatory authority or nonregulated utility 
                determines that the program would--
                          (i) benefit end-use customers;
                          (ii) be cost-effective based on total 
                        resource cost;
                          (iii) serve the public welfare; and
                          (iv) be feasible to implement.
          (3) Implementation.--
                  (A) State regulatory authorities.--If a State 
                regulatory authority makes a determination 
                under paragraph (2)(B), the State regulatory 
                authority shall--
                          (i) require each gas utility over 
                        which the State has ratemaking 
                        authority to implement an energy 
                        efficiency resource program; and
                          (ii) allow such a utility to recover 
                        any expenditures incurred by the 
                        utility in implementing the energy 
                        efficiency resource program.
                  (B) Nonregulated gas utilities.--If a 
                nonregulated gas utility makes a determination 
                under paragraph (2)(B), the utility shall 
                implement an energy efficiency resource 
                program.
          (4) Updating regulations.--A State regulatory 
        authority or nonregulated utility may update 
        periodically a determination under paragraph (2)(B) to 
        determine whether an energy efficiency resource program 
        should be--
                  (A) continued;,
                  (B) modified; or
                  (C) terminated.
          (5) Exception.--Paragraph (2) shall not apply to a 
        State regulatory authority (or any nonregulated gas 
        utility operating in the State) that demonstrates to 
        the Secretary that an energy efficiency resource 
        program is in effect in the State.

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