39–008 

109TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 1st Session 109–49 

PROVIDING FOR CONSIDERATION OF H.R. 6, ENERGY 

POLICY ACT OF 2005 

APRIL 19, 2005.—Referred to the House Calendar and ordered to be printed 

Mr. SESSIONS, from the Committee on Rules, 

submitted the following 

R E P O R T 

[To accompany H. Res. 219] 

The Committee on Rules, having had under consideration House 

Resolution 219, by a non-record vote, reports the same to the 

House with the recommendation that the resolution be adopted. 

SUMMARY OF PROVISIONS OF THE RESOLUTION

The resolution provides for consideration of H.R. 6, the Energy 

Policy Act of 2005, under a structured rule. The rule provides one 

hour and 30 minutes of general debate with 30 minutes equally divided and controlled by the chairman and ranking minority member of the Committee on Energy and Commerce and 20 minutes 

equally divided and controlled by the chairmen and ranking minority members of each of the following Committees: Science, Resources, and Ways and Means. The rule waives all points of order 

against consideration of the bill. 

The rule makes in order only those amendments printed in this 

report, and provides that those amendments may be offered only in 

the order printed in this report, may be offered only by a Member 

designated in this report, shall be considered as read, shall be debatable for the time specified in this report equally divided and 

controlled by the proponent and an opponent, shall not be subject 

to amendment except as specified in the report, and shall not be 

subject to a demand for a division of the question in the House or 

in the Committee of the Whole. The rule waives all points of order 

against the amendments printed in this report. The rule also provides one motion to recommit with or without instructions. 

2 

COMMITTEE VOTES

Pursuant to clause 3(b) of House rule XIII the results of each 

record vote on an amendment or motion to report, together with 

the names of those voting for and against, are printed below: 

RULES COMMITTEE RECORD VOTE NO. 32

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mrs. Slaughter. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mr. Stupak, which 

prohibits any Federal or state permit or lease for new oil or gas 

slant, directional, or offshore drilling in or under the Great Lakes. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 33

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mr. McGovern. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mr. Dingell, which restores fairness to the hydroelectric relicensing provisions of the bill 

by insuring that all parties to a licensing proceeding are entitled 

to a trial-type hearing for any issues of disputed material fact and 

that all parties may offer alternative conditions and prescriptions 

that must be accepted under certain conditions. Allows the resources Secretaries to consolidate multiple requests for trial-type 

hearings. Directs the resources Secretaries in the case of multiple 

alternatives to choose the alternative that is best suited to the relevant standards in the Federal Power Act. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 34

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mr. McGovern. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mr. Rahall, which 

strikes Title XXI which eliminates provisions of law which require 

certain federal coal resources be made available on a competitive 

basis. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 35

Date: April 19, 2005. 

3 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mr. McGovern. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mrs. Capps, which 

strikes the safe harbor provision for MTBE; strikes the transition 

assistance for MTBE manufacturers; and speeds up the national 

phaseout of MTBE to 4 years from date of enactment. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 36

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mrs. Matsui. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mr. Davis of Florida, 

which strikes section 330, ‘‘Appeals Relating to Pipeline Construction or Offshore Mineral Development Projects.’’. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 37

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mrs. Matsui. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mrs. Johnson of 

Texas, which strikes section 1443 of H.R. 6. Under the existing Act, 

areas that have unhealthy air are required to reduce ozone-forming 

smog pollution by set statutory deadlines. Section 1443 would delay 

the set statutory deadlines. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

RULES COMMITTEE RECORD VOTE NO. 38

Date: April 19, 2005. 

Measure: H.R. 6, Energy Policy Act of 2005. 

Motion by: Mrs. Matsui. 

Summary of motion: To make in order and provide the appropriate waivers for the amendment offered by Mr. Gilchrest, which 

requires the development of a National Climate Change Strategy, 

with the goal of stabilizing greenhouse gas concentrations in our 

atmosphere. 

Results: Defeated 3 to 8. 

Vote by Members: Hastings (WA)—Nay; Sessions—Nay; Putnam—Nay; Capito—Nay; Cole—Nay; Bishop—Nay; Gingrey—Nay; 

Slaughter—Yea; McGovern—Yea; Matsui—Yea; Dreier—Nay. 

4 

SUMMARY OF AMENDMENTS MADE IN ORDER

1. Barton: Manager’s Amendment. Changes Table of Contents. 

Sets ESPC cap at $500 million by having OMB approve contracts. 

Includes ceiling fan efficiency standards. Limits preemption on 

state consumer product energy efficiency standards. Includes affordable housing amendments. Moves photovoltaic program back 

from DOE to GSA. Deletes duplicative provisions reported by the 

Resources Committee. Adds the Natural Gas Market Reform provision from the H.R. 6 conference report of the 108th Congress back 

into bill. Allows clean air coal projects of 600 MW or less. Makes 

employee benefits provision subject to appropriations. Clarifies references to firearm laws under nuclear security provision. Includes 

aircraft idling study as modified by the Transportation and Infrastructure Committee. Includes engine idling program as amended. 

Includes hydrogen fuel cell bus program. Reinserts Western MI 

Demonstration Project originally from the H.R. 6 conference report. 

Reinserts Western Hemisphere Energy Cooperation originally from 

the H.R. 6 conference report. Reinserts Arctic Engineering Research Center originally from the H.R. 6 conference report. Reinserts Barrow Geophysical Research Facility originally from the 

H.R. 6 conference report. Clarifies tax status of Ultra-deep consortium. Amends PUHCA language to allow savings clause and makes 

enforcement provisions effective on date of enactment. Requires regional boards with FERC participation to study security constrained economic dispatch. Changes Bump Up date. Modifies Soybean oil reference. Modifies NAS MTBE study date. Includes onroad and off-road diesel rules in fuel harmonization study. Clarifies 

LUST rulemakings and dates for appropriations. Boutique Fuels 

studies clarified and made subject to sound science. Modifications 

to Title headings. (Revised) (10 minutes) 

2. Dingell: Authorizes the Federal Energy Regulatory Commission (FERC) to deter and punish fraud and manipulation in electricity and gas markets, increases penalties for Federal Power Act 

violations, authorizes FERC to refund all electricity overcharges, 

does not repeal the Public Utility Holding Company Act of 1935 

(PUHCA), and directs the Securities and Exchange Commission to 

review utility holding companies’ status under PUHCA to prevent 

them from wrongly claiming exemptions. The amendment retains 

a number of valuable provisions from Title XII, such as ‘‘open access’’ for public power entities, and does not modify the ‘‘native 

load’’ provision adopted in the Energy and Commerce Committee. 

The amendment retains Title XII’s electric transmission provision, 

including the spending caps. (20 minutes) 

3. Markey: Strikes the provisions that will allow oil and gas exploration in the Arctic National Wildlife Refuge. (30 minutes) 

4. Boehlert/Markey/Kirk/Gilchrest/Leach/Shays: Directs the Secretary of Transportation to increase fuel economy standards from 

today’s average of 25 miles/gallon to 33 miles/gallon over 10 years 

(by 2015), consistent with the findings of the National Academy of 

Sciences, in order to save 10% of the gasoline the nation would otherwise consume by 2015. Amendment also directs the Secretary to 

maximize job retention in the American auto manufacturing sector 

and to prevent taking actions that would reduce safety. (20 minutes) 

5 

5. Johnson (CT): Requires that the EPA’s fuel economy test procedures reflect current driving patterns and conditions and provide 

consumers with more accurate information about fuel economy. (10 

minutes) 

6. Rogers (MI)/Kilpatrick: Amendment to the Johnson of Connecticut amendment. Directs the Administrator of the EPA to revise certain Federal vehicle fuel economy adjustment factors to 

take into consideration higher speed limits, faster acceleration 

rates, variations in temperature, use of air conditioning, shorter 

city test cycle lengths, and the use of other fuel depleting features 

to provide consumers with accurate fuel economy information on 

new vehicle labels. (10 minutes) 

7. Bishop (NY)/Markey: This Democratic alternative energy policy will help lower gas prices, increase our energy efficiency standards, and eliminate special interest subsidies and instead invest 

those resources in new technology to create a better energy future 

for our children. (30 minutes) 

8. Slaughter: Requires any escalator being installed in federal 

buildings to be an Intermittent Escalator. In addition, federal agencies would also be encouraged to incorporate other escalator energy 

conservation measures. (10 minutes) 

9. Waxman: Requires the Administration to take ‘‘voluntary, regulatory, and other actions’’ to reduce oil demand in the U.S. by 1 

million barrels per day from projected levels by 2013. (10 minutes) 

10. Oberstar: Authorizes $20 million for the Administrator of 

General Services Administration to proceed with the Sun Wall Design Project, the winning entry in a national design competition 

sponsored jointly by the Department of Energy and the National 

Renewable Energy Laboratory, to install a photovoltaic solar electric system on the headquarters building of the Department of Energy. (10 minutes) 

11. Abercrombie: Authorizes a 3-year demonstration program for 

the production of ethanol in Hawaii to parallel the existing program for corn to show that the process can be applicable to cane 

sugar and can be replicated on larger scale once the sugar cane industry has site located and constructed ethanol production facilities. Specifically, $8.0 million would result in a $1.00 per gallon 

payment to refiners and 8.0 million gallons of ethanol fuel. (10 

minutes) 

12. Kaptur: Provides the Secretary of Energy the authority to include in the Strategic Petroleum Reserve alternative fuels, including ethanol and biodiesel and rename the reserve the ‘‘Strategic 

Fuels Reserve.’’ (10 minutes) 

13. Conaway: Provides that the Department of Energy, in consultation with the Department of Labor and the Department of 

lnterior, will evaluate and report on both the short term and longer 

term availability of skilled workers to meet the energy security of 

the United States, addressing the availability of skilled labor at 

both entry level and at more senior levels in the oil, gas, and mineral industries. (10 minutes) 

14. Solis: Strikes all of Title III, Subtitle D, the Refinery Revitalization Act. Subtitle D preempts state regulations, relaxes public 

health and environmental laws for siting of refineries, and has adverse impacts on under-served communities. (10 minutes) 

6 

15. Udall (NM): Strikes section 631, eliminating the proposed $10 

million payment for three fiscal years to domestic uranium producers ‘‘to identify, test, and develop improved in situ leaching 

mining technologies, including low-cost environmental restoration 

technologies.’’ (10 minutes) 

16. Ford: Authorizes the Environmental Protection Agency to establish a program to encourage the domestic production of hybrid 

and advanced diesel vehicles. The program shall include grants 

(not to exceed $300 million each of the next ten years) to domestic 

automobile manufacturers to (a) encourage production of hybrid 

and advanced diesel vehicles and (b) provide consumer alternatives 

in the form of discounts, rebates, etc. to purchase hybrid and advanced diesel vehicles. (10 minutes) 

17. Kaptur/Kucinich: Amends section 722, the Pilot Program for 

the Department of Energy’s Clean Cities Program, to increase the 

number of project grants to State governments, local governments, 

and metropolitan transportation authorities from 15 to 30. Also reduces the amount of total Federal assistance under the pilot program to anyone applicant from $20 million to $15 million. Does not 

increase the bill’s authorized spending level of $200 million for the 

pilot program. (10 minutes) 

18. Millender-McDonald: Establishes a Diesel Truck Retrofit and 

Fleet Modernization Program to be administered in conjunction 

with the Secretary of Energy and the Administrator of the Environmental Protection Agency. Competitive grants are to be awarded to 

public agencies and/or state and local governments and entities to 

implement fleet modernization programs including installation of 

retrofit technologies for diesel trucks. (10 minutes) 

19. Blumenauer: Establishes within the Department of Transportation a Conserve by Bicycling pilot program, which would oversee 

up to 10 pilot projects geographically dispersed across the country 

designed to conserve energy resources by providing education and 

marketing tools to convert car trips to bike trips. In addition, the 

projects would encourage partnerships between stakeholders from 

transportation, law enforcement, education, public health, environment, and energy fields. Requires a report to Congress within two 

years of implementation. (10 minutes) 

20 Jackson-Lee: Earmarks $5 million annually for bioenergy 

training and education targeted to minority and socially disadvantaged farmers and ranchers. (10 minutes) 

21. Davis, T. (VA)/Waxman: Strikes section 978, ‘‘Improved Coordination and Management of Civilian Science and Technology 

Programs,’’ which would create 2 new, Senate-confirmed assistant 

secretary positions within the Department of Energy, increasing 

the total number of Senate-confirmed assistant secretaries in the 

Department to 8. (10 minutes) 

22. Walsh: Establishes a National Priority Project designation to 

be awarded annually to organizations that have advanced the field 

of renewable energy technology and contributed to North American 

energy independence. The designation shall be awarded in two categories: renewable energy generation projects; and, energy efficient 

and renewable energy building projects. (10 minutes) 

23. Engel: Makes producers of ‘‘approved renewable fuels’’ eligible for grants to build production facilities for renewable fuels. In 

7 

the current bill, only merchant producers of cellulosic biomass and 

waste derived from ethanol are eligible for grants. (10 minutes) 

24. Israel: Requires the Comptroller General of the United States 

to conduct a study on the impact of the consolidation of gasoline 

wholesales (and above) on the gasoline retail market (pricing of retail gasoline, local small business ownership and other market impacts). The study shall be delivered back to Congress 12 months 

from enactment of the legislation. (10 minutes) 

25. Kucinich: Authorizes a National Academy of Sciences study 

on the feasibility of mustard seed as a feedstock for biodiesel. (10 

minutes) 

26. Holt: Requires the Secretary of Energy, within 2 years of enactment, to report to Congress on the potential fuel savings from 

information technology systems that help businesses and consumers to plan their travel and avoid delays. These systems may 

include, for example, web-based real time transit information systems, congestion information systems, car-pool information systems, parking information systems, freight route management, and 

traffic management systems. (10 minutes) 

27. Grijalva: Strikes section 2005 which requires the Secretary of 

the Interior to suspend the collection of royalty payments to the 

Treasury for offshore oil and gas production on the Outer Continental Shelf (OCS) in the Gulf of Mexico. (10 minutes) 

28. Inslee: Reduces by 50% any royalty payments, excluding the 

costs of processing the rights-of-way, for wind energy generation 

that otherwise would be paid to the Treasury on BLM lands. This 

royalty relief provision terminates after 10 years of enactment or 

after the Secretary declares there exists a generation capacity of at 

least 10,000 megawatts of electricity from renewable sources on 

public lands, whichever is sooner. (10 minutes) 

29. Hastings (FL): Expands the definition of environmental justice, directs each Federal Agency to establish an office of environmental justice, reestablishes the interagency Federal Working 

Group on Environmental Justice, and requires that Executive 

Order (EO) 12898 (relating to Federal actions to address environmental justice in minority populations and low-income populations) 

remain in force until changed by law. (10 minutes) 

30. Castle: Strikes language in the bill (section 320 of title III), 

which would preempt the authority of state and local governments 

to ensure that liquefied natural gas (LNG) facilities are sited in 

areas where they do not pose a threat to public safety, and the 

states’ authority to ensure that such facilities are not sited in 

places where they pose a threat to sensitive coastal and ocean 

areas. Under section 320, the Federal Energy Regulatory Commission (FERC), would be made the lead federal agency for LNG siting 

decisions, and states would be granted only a consultative role. (10 

minutes) 

(Summaries derived from information provided by amendment 

sponsors.) 

8 

TEXT OF AMENDMENTS MADE IN ORDER

1. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BARTON OF

TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In the item in the table of contents relating to section 142, strike 

‘‘cdbg’’ and insert ‘‘CDBG’’. 

In section 105(a)(1), strike ‘‘Section 801(a)’’ and insert ‘‘Section 

801(a)(2)’’. 

In section 105(a)(1), strike ‘‘(42 U.S.C. 8287(a))’’ and insert ‘‘(42 

U.S.C. 8287(a)(2))’’. 

In section 105(a)(1), in the proposed subparagraph (E), insert 

‘‘and report to the Office of Management and Budget’’ after ‘‘shall 

meet monthly’’. 

In section 105(a)(1), in the proposed subparagraph (E), insert ‘‘No 

Federal agency shall enter into a contract under this title unless 

the Office of Management and Budget has approved such contract.’’ 

after ‘‘contracts are not exceeded.’’. 

In section 105, strike subsections (c), (d), (e), (f), and (g), and redesignate subsection (h) as subsection (c). 

In section 133(b), in the proposed subsection (f), strike ‘‘for suspended ceiling fans,’’; and strike the last sentence. 

In section 133(c), in the proposed subsection (v), strike ‘‘SUSPENDED CEILING FANS, VENDING MACHINES,’’ and insert ‘‘VENDING

MACHINES’’ in the subsection heading. 

In section 133(c), in the proposed subsection (v), strike ‘‘suspended ceiling fans, refrigerated bottled or canned beverage vending machines,’’ and insert ‘‘refrigerated bottled or canned beverage 

vending machines’’. 

In section 136, strike ‘‘Section 327’’ and insert ‘‘Effective 3 years 

after the date of enactment of this Act, section 327’’. 

In section 136, redesignate the proposed subsection (h) as subsection (i). 

In section 136, in the proposed subsection (i)(1) (as so redesignated by the preceding amendment), strike ‘‘or revised’’ both places 

it appears. 

In section 148 of the bill, strike subparagraph (B) of paragraph 

(1) and insert the following: 

(B) in paragraph (2), by inserting ‘‘, and, with respect to rehabilitation and new construction of public 

and assisted housing funded by HOPE VI revitalization grants under section 24 of the United States 

Housing Act of 1937 (42 U.S.C. 1437v), the 2003 International Energy Conservation Code’’ after ‘‘90.1– 

1989’)’’; 

In section 148 of the bill, strike subparagraph (B) of paragraph 

(2) and all that follows through the end of paragraph (3) and insert 

the following: 

(B) by inserting ‘‘, and, with respect to rehabilitation 

and new construction of public and assisted housing 

funded by HOPE VI revitalization grants under section 24 of the United States Housing Act of 1937 (42 

9 

U.S.C. 1437v), the 2003 International Energy Conservation Code’’ before the period at the end; and 

(3) in subsection (c)— 

(A) in the heading, by inserting ‘‘AND THE INTER- NATIONAL ENERGY CONSERVATION CODE’’ after ‘‘MODEL EN- ERGY CODE’’; and 

(B) by inserting ‘‘, or, with respect to rehabilitation and 

new construction of public and assisted housing funded by 

HOPE VI revitalization grants under section 24 of the 

United States Housing Act of 1937 (42 U.S.C. 1437v), the 

2003 International Energy Conservation Code’’ after 

‘‘1989’’. 

In section 205(a), in the proposed section 570(a)(1), strike ‘‘Secretary’’ and insert ‘‘Administrator of General Services’’. 

In section 205(a), in the proposed section 570(a)(4), strike ‘‘Secretary’’ and insert ‘‘Administrator’’. 

In section 205(a), in the proposed section 570(b)(1), strike ‘‘Secretary’’ and insert ‘‘Administrator’’. 

In section 205(a), in the proposed section 570(b)(2), strike ‘‘Secretary’’ and insert ‘‘Administrator’’. 

In section 205(a), strike ‘‘Part 4 of title V of the National Energy 

Conservation Policy Act (42 U.S.C. 8271 et seq.)’’ and insert ‘‘Subchapter VI of chapter 31 of title 40, United States Code,’’. 

In section 205(a), at the beginning of the quoted material, strike ‘‘SEC. 570.’’ and insert ‘‘§3177.’’. 

Strike section 206 (and amend the table of contents accordingly). 

Strike section 244 (and amend the table of contents accordingly). 

Strike section 245 (and amend the table of contents accordingly). 

In title III, after section 330, insert the following new section 

(and amend the table of contents accordingly): 

SEC. 332. NATURAL GAS MARKET REFORM. 

(a) CLARIFICATION OF EXISTING CFTC AUTHORITY.— (1) FALSE REPORTING.—Section 9(a)(2) of the Commodity Exchange Act (7 U.S.C. 13(a)(2)) is amended by striking ‘‘false or 

misleading or knowingly inaccurate reports’’ and inserting 

‘‘knowingly false or knowingly misleading or knowingly inaccurate reports’’. 

(2) COMMISSION ADMINISTRATIVE AND CIVIL AUTHORITY.—Section 9 of the Commodity Exchange Act (7 U.S.C. 13) is amended by redesignating subsection (f) as subsection (e), and adding: 

‘‘(f) COMMISSION ADMINISTRATIVE AND CIVIL AUTHORITY.—The 

Commission may bring administrative or civil actions as provided 

in this Act against any person for a violation of any provision of 

this section including, but not limited to, false reporting under subsection (a)(2).’’. 

(3) EFFECT OF AMENDMENTS.—The amendments made by 

paragraphs (1) and (2) restate, without substantive change, existing burden of proof provisions and existing Commission civil 

enforcement authority, respectively. These clarifying changes 

do not alter any existing burden of proof or grant any new statutory authority. The provisions of this section, as restated 

herein, continue to apply to any action pending on or comVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00009 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
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menced after the date of enactment of this Act for any act, 

omission, or violation occurring before, on, or after, such date 

of enactment. 

(b) FRAUD AUTHORITY.—Section 4b of the Commodity Exchange 

Act (7 U.S.C. 6b) is amended— 

(1) by redesignating subsections (b) and (c) as subsections (c) 

and (d), respectively; and 

(2) by striking subsection (a) and inserting the following: 

‘‘(a) It shall be unlawful— 

‘‘(1) for any person, in or in connection with any order to 

make, or the making of, any contract of sale of any commodity 

for future delivery or in interstate commerce, that is made, or 

to be made, on or subject to the rules of a designated contract 

market, for or on behalf of any other person; or 

‘‘(2) for any person, in or in connection with any order to 

make, or the making of, any contract of sale of any commodity 

for future delivery, or other agreement, contract, or transaction 

subject to section 5a(g) (1) and (2) of this Act, that is made, or 

to be made, for or on behalf of, or with, any other person, other 

than on or subject to the rules of a designated contract market— 

‘‘(A) to cheat or defraud or attempt to cheat or defraud 

such other person; 

‘‘(B) willfully to make or cause to be made to such other 

person any false report or statement or willfully to enter 

or cause to be entered for such other person any false 

record; 

‘‘(C) willfully to deceive or attempt to deceive such other 

person by any means whatsoever in regard to any order or 

contract or the disposition or execution of any order or contract, or in regard to any act of agency performed, with respect to any order or contract for or, in the case of subsection (a)(2), with such other person; or 

‘‘(D)(i) to bucket an order if such order is either represented by such person as an order to be executed, or required to be executed, on or subject to the rules of a designated contract market; or 

‘‘(ii) to fill an order by offset against the order or orders 

of any other person, or willfully and knowingly and without the prior consent of such other person to become the 

buyer in respect to any selling order of such other person, 

or become the seller in respect to any buying order of such 

other person, if such order is either represented by such 

person as an order to be executed, or required to be executed, on or subject to the rules of a designated contract 

market. 

‘‘(b) Subsection (a)(2) shall not obligate any person, in connection 

with a transaction in a contract of sale of a commodity for future 

delivery, or other agreement, contract or transaction subject to section 5a(g) (1) and (2) of this Act, with another person, to disclose 

to such other person nonpublic information that may be material 

to the market price of such commodity or transaction, except as 

necessary to make any statement made to such other person in 

connection with such transaction, not misleading in any material 

respect.’’. 

11 

(c) JURISDICTION OF THE CFTC.—The Natural Gas Act (15 U.S.C. 

717 et seq.) is amended by adding at the end: 

‘‘SEC. 26. JURISDICTION. 

‘‘This Act 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.). Any request for information by the Commission 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) INCREASED PENALTIES.—Section 21 of the Natural Gas Act 

(15 U.S.C. 717t) is amended— 

(1) in subsection (a)— 

(A) by striking ‘‘$5,000’’ and inserting ‘‘$1,000,000’’; and 

(B) by striking ‘‘two years’’ and inserting ‘‘5 years’’; and (2) in subsection (b), by striking ‘‘$500’’ and inserting ‘‘$50,000’’. 

In section 441(a), in the proposed section 3105(b)(1), insert ‘‘or 

equal to’’ after ‘‘projects less than’’. 

In section 640, strike ‘‘Section 3110’’ and insert ‘‘Section 3110(a)’’. 

In section 640, in the proposed paragraph (8), strike ‘‘Not later 

than’’ and insert ‘‘To the extent appropriations are provided in advance for this purpose or are otherwise available, not later than’’. 

In section 663, at the beginning of the quoted material, strike 

‘‘(z)’’ and insert ‘‘z.’’. 

In section 663, in the proposed subsection z.(1), strike ‘‘section 

922(o), (v), and (w)’’ and insert ‘‘section 922(a)(4) and (o)’’. 

In section 663, in the proposed subsection z.(2)(A), strike ‘‘, (o), 

(v), and (w)’’ and insert ‘‘and (o)’’. 

In section 722(b)(1)(B), strike ‘‘, scooters,’’. 

In title VII, amend section 753 to read as follows: 

SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS. 

(a) IN GENERAL.—Not later than 60 days after the date of enactment of this Act, the Administrator of the Federal Aviation Administration and the Administrator of the Environmental Protection 

Agency shall jointly initiate a study to identify— 

(1) the impact of aircraft emissions on air quality in nonattainment areas; 

(2) ways to promote fuel conservation measures for aviation 

to enhance fuel efficiency and reduce emissions; and 

(3) opportunities to reduce air traffic inefficiencies that increase fuel burn and emissions. 

(b) FOCUS.—The study under subsection (a) shall focus on how 

air traffic management inefficiencies, such as aircraft idling at airports, result in unnecessary fuel burn and air emissions. 

(c) REPORT.—Not later than 1 year after the date of the initiation 

of the study under subsection (a), the Administrator of the Federal 

Aviation Administration and the Administrator of the EnvironVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00011 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
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mental Protection Agency shall jointly submit to the Committee on 

Energy and Commerce and the Committee on Transportation and 

Infrastructure of the House of Representatives and the Committee 

on Environment and Public Works and the Committee on Commerce, Science, and Transportation of the Senate a report that— 

(1) describes the results of the study; and 

(2) includes any recommendations on ways in which unnecessary fuel use and emissions affecting air quality may be reduced— 

(A) without adversely affecting safety and security and 

increasing individual aircraft noise; and 

(B) while taking into account all aircraft emissions and 

the impact of those emissions on the human health. 

(d) RISK ASSESSMENTS.—Any assessment of risk to human health 

and the environment prepared by the Administrator of the Federal 

Aviation Administration or the Administrator of the Environmental 

Protection Agency to support the report in this section shall be 

based on sound and objective scientific practices, shall consider the 

best available science, and shall present the weight of the scientific 

evidence concerning such risks. 

In title VII, amend section 756 to read as follows: 

SEC. 756. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY VEHICLES. 

(a) DEFINITIONS.—In this section: 

(1) ADMINISTRATOR.—The term ‘‘Administrator’’ means the 

Administrator of the Environmental Protection Agency. 

(2) ADVANCED TRUCK STOP ELECTRIFICATION SYSTEM.—The 

term ‘‘advanced truck stop electrification system’’ means a stationary system that delivers heat, air conditioning, electricity, 

or communications, and is capable of providing verifiable and 

auditable evidence of use of those services, to a heavy-duty vehicle and any occupants of the heavy-duty vehicle with or without relying on components mounted onboard the heavy-duty 

vehicle for delivery of those services. 

(3) AUXILIARY POWER UNIT.—The term ‘‘auxiliary power unit’’ 

means an integrated system that— 

(A) provides heat, air conditioning, engine warming, or 

electricity to components on a heavy-duty vehicle; and 

(B) is certified by the Administrator under part 89 of 

title 40, Code of Federal Regulations (or any successor regulation), as meeting applicable emission standards. 

(4) HEAVY-DUTY VEHICLE.—The term ‘‘heavy-duty vehicle’’ 

means a vehicle that— 

(A) has a gross vehicle weight rating greater than 8,500 

pounds; and 

(B) is powered by a diesel engine. 

(5) IDLE REDUCTION TECHNOLOGY.—The term ‘‘idle reduction 

technology’’ means an advanced truck stop electrification system, auxiliary power unit, or other device or system of devices 

that— 

(A) is used to reduce long-duration idling of a heavy-duty 

vehicle; and 

(B) allows for the main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle to be shut down. 

13 

(6) ENERGY CONSERVATION TECHNOLOGY.—the term ‘‘energy 

conservation technology’’ means any device, system of devices, 

or equipment that improves the fuel economy of a heavy-duty 

vehicle. 

(7) LONG-DURATION IDLING.— (A) IN GENERAL.—The term ‘‘long-duration idling’’ means 

the operation of a main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle, for a period greater 

than 15 consecutive minutes, at a time at which the main 

drive engine is not engaged in gear. 

(B) EXCLUSIONS.—The term ‘‘long-duration idling’’ does 

not include the operation of a main drive engine or auxiliary refrigeration engine of a heavy-duty vehicle during a 

routine stoppage associated with traffic movement or congestion. 

(b) IDLE REDUCTION TECHNOLOGY BENEFITS, PROGRAMS, AND

STUDIES.— 

(1) IN GENERAL.—Not later than 90 days after the date of enactment of this Act, the Administrator shall— 

(A)(i) commence a review of the mobile source air emission models of the Environmental Protection Agency used 

under the Clean Air Act (42 U.S.C. 7401 et seq.) to determine whether the models accurately reflect the emissions 

resulting from long-duration idling of heavy-duty vehicles 

and other vehicles and engines; and 

(ii) update those models as the Administrator determines to be appropriate; and 

(B)(i) commence a review of the emission reductions 

achieved by the use of idle reduction technology; and 

(ii) complete such revisions of the regulations and guidance of the Environmental Protection Agency as the Administrator determines to be appropriate. 

(2) DEADLINE FOR COMPLETION.—Not later than 180 days 

after the date of enactment of this Act, the Administrator 

shall— 

(A) complete the reviews under subparagraphs (A)(i) and 

(B)(i) of paragraph (1); and 

(B) prepare and make publicly available 1 or more reports on the results of the reviews. 

(3) DISCRETIONARY INCLUSIONS.—The reviews under subparagraphs (A)(i) and (B)(i) of paragraph (1) and the reports 

under paragraph (2)(B) may address the potential fuel savings 

resulting from use of idle reduction technology. 

(4) IDLE REDUCTION AND ENERGY CONSERVATION DEPLOYMENT

PROGRAM.— 

(A) ESTABLISHMENT.— 

(i) IN GENERAL.—Not later than 90 days after the 

date of enactment of this Act, the Administrator, in 

consultation with the Secretary of Transportation 

shall, through the Environmental Protection Agency’s 

SmartWay Transport Partnership, establish a program 

to support deployment of idle reduction and energy 

conservation technologies . 

(ii) PRIORITY.—The Administrator shall give priority 

to the deployment of idle reduction and energy conVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00013 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
14 

servation technologies based on the costs and beneficial effects on air quality and ability to lessen the 

emission of criteria air pollutants. 

(B) FUNDING.— 

(i) AUTHORIZATION OF APPROPRIATIONS.—There are 

authorized to be appropriated to the Administrator to 

carry out subparagraph (A) $19,500,000 for fiscal year 

2006, $30,000,000 for fiscal year 2007, and 

$45,000,000 for fiscal year 2008. 

(ii) COST SHARING.—Subject to clause (iii), the Administrator shall require at least 50 percent of the 

costs directly and specifically related to any project 

under this section to be provided from non-Federal 

sources. 

(iii) NECESSARY AND APPROPRIATE REDUCTIONS.—The 

Administrator may reduce the non-Federal requirement under clause (ii) if the Administrator determines 

that the reduction is necessary and appropriate to 

meet the objectives of this section. 

(5) IDLING LOCATION STUDY.— 

(A) IN GENERAL.—Not later than 90 days after the date 

of enactment of this Act, the Administrator, in consultation with the Secretary of Transportation, shall commence 

a study to analyze all locations at which heavy-duty vehicles stop for long-duration idling, including— 

(i) truck stops; 

(ii) rest areas; 

(iii) border crossings; 

(iv) ports; 

(v) transfer facilities; and 

(vi) private terminals. 

(B) DEADLINE FOR COMPLETION.—Not later than 180 

days after the date of enactment of this Act, the Administrator shall— 

(i) complete the study under subparagraph (A); and 

(ii) prepare and make publicly available 1 or more 

reports of the results of the study. 

(c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) of title 23, 

United States Code, is amended— 

(1) by designating the first through eleventh sentences as 

paragraphs (1) through (11), respectively; and 

(2) by adding at the end the following: 

‘‘(12) HEAVY DUTY VEHICLES.— 

‘‘(A) IN GENERAL.—Subject to subparagraphs (B) and (C), 

in order to promote reduction of fuel use and emissions because of engine idling, the maximum gross vehicle weight 

limit and the axle weight limit for any heavy-duty vehicle 

equipped with an idle reduction technology shall be increased by a quantity necessary to compensate for the additional weight of the idle reduction system. 

‘‘(B) MAXIMUM WEIGHT INCREASE.—The weight increase 

under subparagraph (A) shall be not greater than 400 

pounds. 

15 

‘‘(C) PROOF.—On request by a regulatory agency or law 

enforcement agency, the vehicle operator shall provide 

proof (through demonstration or certification) that— 

‘‘(i) the idle reduction technology is fully functional 

at all times; and 

‘‘(ii) the 400-pound gross weight increase is not used 

for any purpose other than the use of idle reduction 

technology described in subparagraph (A).’’. 

(d) REPORT.—Not later than 60 days after the date on which 

funds are initially awarded under this section, and on an annual 

basis thereafter, the Administrator shall submit to Congress a report containing— 

(1) an identification of the grant recipients, a description of 

the projects to be funded and the amount of funding provided; 

and 

(2) an identification of all other applicants that submitted 

applications under the program. 

In title VIII, after section 810, insert the following and make the 

necessary conforming changes in the table of contents: 

SEC. 811. HYDROGEN FUEL CELL BUSES. 

The Secretary of Energy, through the advanced vehicle technologies program, in coordination with the Secretary of Transportation, shall advance the development of fuel cell bus technologies 

by providing funding for 4 demonstration sites that— 

(1) have or will soon have hydrogen infrastructure for fuel 

cell bus operation; and 

(2) are operated by entities with experience in the development of fuel cell bus technologies, to enable the widespread utilization of fuel cell buses. 

Such demonstrations shall address the reliability of fuel cell heavyduty vehicles, expense, infrastructure, containment, storage, safety, 

training, and other issues. 

In title IX, subtitle F, chapter 1, add at the end the following 

new sections: 

SEC. 968A. WESTERN MICHIGAN DEMONSTRATION PROJECT. 

The Administrator of the Environmental Protection Agency, in 

consultation with the State of Michigan and affected local officials, 

shall conduct a demonstration project to address the effect of transported ozone and ozone precursors in Southwestern Michigan. The 

demonstration program shall address projected nonattainment 

areas in Southwestern Michigan that include counties with design 

values for ozone of less than .095 based on years 2000 to 2002 or 

the most current 3-year period of air quality data. The Administrator shall assess any difficulties such areas may experience in 

meeting the 8 hour national ambient air quality standard for ozone 

due to the effect of transported ozone or ozone precursors into the 

areas. The Administrator shall work with State and local officials 

to determine the extent of ozone and ozone precursor transport, to 

assess alternatives to achieve compliance with the 8 hour standard 

apart from local controls, and to determine the timeframe in which 

such compliance could take place. The Administrator shall complete this demonstration project no later than 2 years after the 

date of enactment of this section and shall not impose any requireVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00015 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
16 

ment or sanction that might otherwise apply during the pendency 

of the demonstration project. 

SEC. 968B. WESTERN HEMISPHERE ENERGY COOPERATION. 

(a) PROGRAM.—The Secretary shall carry out a program to promote cooperation on energy issues with Western Hemisphere countries. 

(b) ACTIVITIES.—Under the program, the Secretary shall fund activities to work with Western Hemisphere countries to— 

(1) assist the countries in formulating and adopting changes 

in economic policies and other policies to— 

(A) increase the production of energy supplies; and 

(B) improve energy efficiency; and 

(2) assist in the development and transfer of energy supply 

and efficiency technologies that would have a beneficial impact 

on world energy markets. 

(c) UNIVERSITY PARTICIPATION.—To the extent practicable, the 

Secretary shall carry out the program under this section with the 

participation of universities so as to take advantage of the acceptance of universities by Western Hemisphere countries as sources of 

unbiased technical and policy expertise when assisting the Secretary in— 

(1) evaluating new technologies; 

(2) resolving technical issues; 

(3) working with those countries in the development of new 

policies; and 

(4) training policymakers, particularly in the case of universities that involve the participation of minority students, such 

as Hispanic-serving institutions and Historically Black Colleges and Universities. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section— 

(1) $8,000,000 for fiscal year 2006; 

(2) $10,000,000 for fiscal year 2007; 

(3) $13,000,000 for fiscal year 2008; 

(4) $16,000,000 for fiscal year 2009; and 

(5) $19,000,000 for fiscal year 2010. 

SEC. 968C. ARCTIC ENGINEERING RESEARCH CENTER. 

(a) IN GENERAL.—The Secretary of Energy (referred to in this 

section as the ‘‘Secretary’’) in consultation with the Secretary of 

Transportation and the United States Arctic Research Commission 

shall provide annual grants to a university located adjacent to the 

Arctic Energy Office of the Department of Energy, to establish and 

operate a university research center to be headquartered in Fairbanks and to be known as the ‘‘Arctic Engineering Research Center’’ (referred to in this section as the ‘‘Center’’). 

(b) PURPOSE.—The purpose of the Center shall be to conduct research on, and develop improved methods of, construction and use 

of materials to improve the overall performance of roads, bridges, 

residential, commercial, and industrial structures, and other infrastructure in the Arctic region, with an emphasis on developing— 

(1) new construction techniques for roads, bridges, rail, and 

related transportation infrastructure and residential, commercial, and industrial infrastructure that are capable of withVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
17 

standing the Arctic environment and using limited energy resources as efficiently as possible; 

(2) technologies and procedures for increasing road, bridge, 

rail, and related transportation infrastructure and residential, 

commercial, and industrial infrastructure safety, reliability, 

and integrity in the Arctic region; 

(3) new materials and improving the performance and energy 

efficiency of existing materials for the construction of roads, 

bridges, rail, and related transportation infrastructure and residential, commercial, and industrial infrastructure in the Arctic region; and 

(4) recommendations for new local, regional, and State permitting and building codes to ensure transportation and building safety and efficient energy use when constructing, using, 

and occupying such infrastructure in the Arctic region. 

(c) OBJECTIVES.—The Center shall carry out— 

(1) basic and applied research in the subjects described in 

subsection (b), the products of which shall be judged by peers 

or other experts in the field to advance the body of knowledge 

in road, bridge, rail, and infrastructure engineering in the Arctic region; and 

(2) an ongoing program of technology transfer that makes research results available to potential users in a form that can 

be implemented. 

(d) AMOUNT OF GRANT.—For each of fiscal years 2006 through 

2011, the Secretary shall provide a grant in the amount of 

$3,000,000 to the institution specified in subsection (a) to carry out 

this section. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $3,000,000 for each of fiscal years 2006 through 2011. 

SEC. 968D. BARROW GEOPHYSICAL RESEARCH FACILITY. 

(a) ESTABLISHMENT.—The Secretary of Commerce, in consultation 

with the Secretaries of Energy and the Interior, the Director of the 

National Science Foundation, and the Administrator of the Environmental Protection Agency, shall establish a joint research facility in Barrow, Alaska, to be known as the ‘‘Barrow Geophysical Research Facility’’, to support scientific research activities in the Arctic. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretaries of Commerce, Energy, and the 

Interior, the Director of the National Science Foundation, and the 

Administrator of the Environmental Protection Agency for the 

planning, design, construction, and support of the Barrow Geophysical Research Facility $61,000,000. 

In section 970(d), amend paragraph (3) to read as follows: 

(3) REQUIREMENT OF SECTION 501(c)(3) STATUS.—The Secretary shall not select a consortium under this section unless 

such consortium is an organization described in section 

501(c)(3) of the Internal Revenue Code of 1986 and exempt 

from tax under such section 501(a) of such Code. 

In section 1236, adding a new section 217 to the Federal Power 

Act, insert a period before the final closing quotation marks. 

18 

In section 1252(a) and in section 1252(b), strike ‘‘Public Utilities’’ 

and insert ‘‘Public Utility’’. 

In section 1254(b)(1), in the amendment to section 112(b) of the 

Public Utility Regulatory Policies Act of 1978, strike ‘‘(3)(A)’’ and 

insert ‘‘(5)(A)’’. 

In section 1254(b)(2), strike ‘‘112(d) f’’ and insert ‘‘112(d) of’’. 

In title XII, in section 1274(a), after ‘‘for’’ strike ‘‘section’’ and insert ‘‘sections 1269 (relating to effect on other regulations), 1270 

(relating to enforcement), 1271 (relating to savings provisions), 

and’’. 

In title XII, amend section 1298 to read as follows: 

SEC. 1298. ECONOMIC DISPATCH. 

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 

amended by adding at the end the following: 

‘‘SEC. 223. JOINT BOARDS ON ECONOMIC DISPATCH. 

‘‘(a) IN GENERAL.—The Commission shall convene joint boards on 

a regional basis pursuant to section 209 of this Act to study the 

issue of security constrained economic dispatch for the various 

market regions. The Commission shall designate the appropriate 

regions to be covered by each such joint board for purposes of this 

section. 

‘‘(b) MEMBERSHIP.—The Commission shall request each State to 

nominate a representative for the appropriate regional joint board, 

and shall designate a member of the Commission to chair and participate as a member of each such board. 

‘‘(c) POWERS.—The sole authority of each joint board convened 

under this section shall be to consider issues relevant to what constitutes ‘security constrained economic dispatch’ and how such a 

mode of operating an electric energy system affects or enhances the 

reliability and affordability of service to customers in the region 

concerned and to make recommendations to the Commission regarding such issues. 

‘‘(d) REPORT TO THE CONGRESS.—Within one year after enactment of this section, the Commission shall issue a report and submit such report to the Congress regarding the recommendations of 

the joint boards under this section and the Commission may consolidate the recommendations of more than one such regional joint 

board, including any consensus recommendations for statutory or 

regulatory reform.’’. 

In section 1443, in the amendment adding subsection (d) to section 181 of the Clean Air Act, in paragraph (4), strike ‘‘If, no more 

than 18 months prior to the date of enactment of this subsection’’ 

and insert ‘‘If, after April 1, 2003’’ and strike ‘‘within 12 months 

after the date of enactment of this subsection’’. 

In title XIV, in section 1446, strike ‘‘as defined under section 

2(a)(1)(A)’’ and insert ‘‘identified under section 2(a)(1)(B)’’ and 

strike ‘‘2720(a)(1)(A)’’ and insert ‘‘2720(a)(1)(B)’’. 

In title XV, in section 1505(a), strike ‘‘The review shall be completed no later than May 31, 2014’’ and insert ‘‘The review shall 

commence after May 31, 2013, and shall be completed no later than 

May 31, 2014’’. 

In section 1505(b), strike ‘‘No later’’ and insert ‘‘After completion 

of the review under subsection (a) and no later’’. 

19 

In section 1510, in subparagraph (G) of subsection (a)(2), after 

‘‘vehicle emission systems,’’ insert ‘‘on-road and off-road diesel 

rules,’’ and after ‘‘imposed by’’ insert ‘‘the Federal Government,’’. 

In section 1510(b)(1), strike ‘‘2007’’ and insert ‘‘2009’’. 

In title XV, in section 1530, in subsection (a) adding a new subsection (i) to section 9003 of the Solid Waste Disposal Act, strike 

subparagraph (G) of paragraph (1) of such new subsection (i) and 

insert a period at the end of subsection (b). 

In title XV, in section 1531, in the amendment adding new section 9014 to the Solid Waste Disposal Act, in paragraph (2)(C) 

strike ‘‘9004(f)’’ and insert ‘‘9003(i), 9004(f),’’ and in paragraph 

(2)(D) strike ‘‘9011 and 9012’’ and insert ‘‘9010, 9011, 9012, and 

9013’’. 

In section 1541(c)(2), strike ‘‘preserves air quality standards’’ and 

insert ‘‘addresses air quality requirements’’. 

In section 1541(c)(2), strike ‘‘that results’’ and insert ‘‘including 

that which has resulted’’. 

In section 1541(c), insert the following new paragraph after paragraph (2) and redesignate the following paragraphs accordingly: 

(3) CONDUCT OF STUDY.—In carrying out their joint duties 

under this section, the Administrator and the Secretary shall 

use sound science and objective science practices, shall consider the best available science, shall use data collected by accepted means and shall consider and include a description of 

the weight of the scientific evidence. The Administrator and 

the Secretary shall coordinate the study required by this section with other studies required by the act and shall endeavor 

to avoid duplication of effort with regard to such studies. 

In section 1541(c)(4) (as redesignated by the preceding amendment), strike the sentence beginning with ‘‘The Administrator shall 

use sound’’. 

In the heading of title XVII, insert ‘‘—RESOURCES’’ at the end 

(and amend the table of contents accordingly). 

In the heading of title XIX, insert ‘‘—RESOURCES’’ at the end 

(and amend the table of contents accordingly). 

Strike section 2026 (and amend the table of contents accordingly). 

In the heading of title XXI, insert ‘‘—RESOURCES’’ at the end 

(and amend the table of contents accordingly). 

Redesignate title XXV as title XXIV, and redesignate sections 

2501 through 2506 as sections 2401 through 2406, respectively 

(and amend the table of contents accordingly). 

Redesignate section 2601 as section 2055, and move it to the end 

of subtitle D of title XX. 

Redesignate section 2602 as section 112, and move it to the end 

of subtitle A of title I. 

Strike the remainder of title XXVI. 

20 

2. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE DINGELL

OF MICHIGAN, OR HIS DESIGNEE, DEBATABLE FOR 20 MINUTES

Title XII of H.R. 6 is amended by striking sections 1201 through 

1235 and sections 1237 through 1298, by striking the title heading, 

by inserting the following before title XIII, by redesignating section 

1236 (relating to native load service obligation) as section 1233 of 

the following and inserting such redesignated section 1233 after 

section 1232 of the following, and by making the necessary conforming changes in the table of contents: 

TITLE XII—ELECTRICITY 

SECTION 1201. SHORT TITLE. 

This title may be cited as the ‘‘Electric Reliability Act of 2005’’. 

Subtitle A—Reliability Standards 

SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 

(a) IN GENERAL.—Part II of the Federal Power Act (16 U.S.C 824 

et seq.) is amended by adding at the end the following: 

‘‘SEC. 215. ELECTRIC RELIABILITY. 

‘‘(a) DEFINITIONS.—For purposes of this section: 

‘‘(1) The term ‘bulk-power system’ means— 

‘‘(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and 

‘‘(B) electric energy from generation facilities needed to 

maintain transmission system reliability. 

The term does not include facilities used in the local distribution of electric energy. 

‘‘(2) The terms ‘Electric Reliability Organization’ and ‘ERO’ 

mean the organization certified by the Commission under subsection (c) the purpose of which is to establish and enforce reliability standards for the bulk-power system, subject to Commission review. 

‘‘(3) The term ‘reliability standard’ means a requirement, approved by the Commission under this section, to provide for reliable operation of the bulk-power system. The term includes 

requirements for the operation of existing bulk-power system 

facilities and the design of planned additions or modifications 

to such facilities to the extent necessary to provide for reliable 

operation of the bulk-power system, but the term does not include any requirement to enlarge such facilities or to construct 

new transmission capacity or generation capacity. 

‘‘(4) The term ‘reliable operation’ means operating the elements of the bulk-power system within equipment and electric 

system thermal, voltage, and stability limits so that instability, 

uncontrolled separation, or cascading failures of such system 

will not occur as a result of a sudden disturbance or unanticipated failure of system elements. 

‘‘(5) The term ‘Interconnection’ means a geographic area in 

which the operation of bulk-power system components is synVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00020 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
21 

chronized such that the failure of 1 or more of such components may adversely affect the ability of the operators of other 

components within the system to maintain reliable operation of 

the facilities within their control. 

‘‘(6) The term ‘transmission organization’ means a Regional 

Transmission Organization, Independent System Operator, 

independent transmission provider, or other transmission organization finally approved by the Commission for the operation 

of transmission facilities. 

‘‘(7) The term ‘regional entity’ means an entity having enforcement authority pursuant to subsection (e)(4). 

‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The Commission shall 

have jurisdiction, within the United States, over the ERO certified 

by the Commission under subsection (c), any regional entities, and 

all users, owners and operators of the bulk-power system, including 

but not limited to the entities described in section 201(f), for purposes of approving reliability standards established under this section and enforcing compliance with this section. All users, owners 

and operators of the bulk-power system shall comply with reliability standards that take effect under this section. 

‘‘(2) The Commission shall issue a final rule to implement the requirements of this section not later than 180 days after the date 

of enactment of this section. 

‘‘(c) CERTIFICATION.—Following the issuance of a Commission 

rule under subsection (b)(2), any person may submit an application 

to the Commission for certification as the Electric Reliability Organization. The Commission may certify 1 such ERO if the Commission determines that such ERO— 

‘‘(1) has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate 

level of reliability of the bulk-power system; and 

‘‘(2) has established rules that— 

‘‘(A) assure its independence of the users and owners 

and operators of the bulk-power system, while assuring 

fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee 

or subordinate organizational structure; 

‘‘(B) allocate equitably reasonable dues, fees, and other 

charges among end users for all activities under this section; 

‘‘(C) provide fair and impartial procedures for enforcement of reliability standards through the imposition of 

penalties in accordance with subsection (e) (including limitations on activities, functions, or operations, or other appropriate sanctions); 

‘‘(D) provide for reasonable notice and opportunity for 

public comment, due process, openness, and balance of interests in developing reliability standards and otherwise 

exercising its duties; and 

‘‘(E) provide for taking, after certification, appropriate 

steps to gain recognition in Canada and Mexico. 

The total amount of all dues, fees, and other charges collected 

by the ERO in each of the fiscal years 2006 through 2015 and 

allocated under subparagraph (B) shall not exceed $50,000,000. 

22 

‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reliability Organization shall file each reliability standard or modification to a reliability standard that it proposes to be made effective under this 

section with the Commission. 

‘‘(2) The Commission may approve, by rule or order, a proposed 

reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission 

shall give due weight to the technical expertise of the Electric Reliability Organization with respect to the content of a proposed 

standard or modification to a reliability standard and to the technical expertise of a regional entity organized on an Interconnectionwide basis with respect to a reliability standard to be applicable 

within that Interconnection, but shall not defer with respect to the 

effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the Commission. 

‘‘(3) The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to 

a reliability standard to be applicable on an Interconnection-wide 

basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest. 

‘‘(4) The Commission shall remand to the Electric Reliability Organization for further consideration a proposed reliability standard 

or a modification to a reliability standard that the Commission disapproves in whole or in part. 

‘‘(5) The Commission, upon its own motion or upon complaint, 

may order the Electric Reliability Organization to submit to the 

Commission a proposed reliability standard or a modification to a 

reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section. 

‘‘(6) The final rule adopted under subsection (b)(2) shall include 

fair processes for the identification and timely resolution of any 

conflict between a reliability standard and any function, rule, 

order, tariff, rate schedule, or agreement accepted, approved, or ordered by the Commission applicable to a transmission organization. 

Such transmission organization shall continue to comply with such 

function, rule, order, tariff, rate schedule or agreement accepted 

approved, or ordered by the Commission until— 

‘‘(A) the Commission finds a conflict exists between a reliability standard and any such provision; 

‘‘(B) the Commission orders a change to such provision pursuant to section 206 of this part; and 

‘‘(C) the ordered change becomes effective under this part. 

If the Commission determines that a reliability standard needs to 

be changed as a result of such a conflict, it shall order the ERO 

to develop and file with the Commission a modified reliability 

standard under paragraph (4) or (5) of this subsection. 

‘‘(e) ENFORCEMENT.—(1) The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulkpower 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— 

23 

‘‘(A) finds that the user or owner or operator has violated a 

reliability standard approved by the Commission under subsection (d); and 

‘‘(B) files notice and the record of the proceeding with the 

Commission. 

‘‘(2) A penalty imposed under paragraph (1) may take effect not 

earlier than the 31st day after the ERO files with the Commission 

notice of the penalty and the record of proceedings. Such penalty 

shall be subject to review by the Commission, on its own motion 

or upon application by the user, owner or operator that is the subject of the penalty filed within 30 days after the date such notice 

is filed with the Commission. Application to the Commission for review, or the initiation of review by the Commission on its own motion, shall not operate as a stay of such penalty unless the Commission otherwise orders upon its own motion or upon application 

by the user, owner or operator that is the subject of such penalty. 

In any proceeding to review a penalty imposed under paragraph 

(1), the Commission, after notice and opportunity for hearing 

(which hearing may consist solely of the record before the ERO and 

opportunity for the presentation of supporting reasons to affirm, 

modify, or set aside the penalty), shall by order affirm, set aside, 

reinstate, or modify the penalty, and, if appropriate, remand to the 

ERO for further proceedings. The Commission shall implement expedited procedures for such hearings. 

‘‘(3) On its own motion or upon complaint, the Commission may 

order compliance with a reliability standard and may impose a 

penalty against a user or owner or operator of the bulk-power system if the Commission finds, after notice and opportunity for a 

hearing, that the user or owner or operator of the bulk-power system has engaged or is about to engage in any acts or practices that 

constitute or will constitute a violation of a reliability standard. 

‘‘(4) The Commission shall issue regulations authorizing the ERO 

to enter into an agreement to delegate authority to a regional entity for the purpose of proposing reliability standards to the ERO 

and enforcing reliability standards under paragraph (1) if— 

‘‘(A) the regional entity is governed by— 

‘‘(i) an independent board; 

‘‘(ii) a balanced stakeholder board; or 

‘‘(iii) a combination independent and balanced stakeholder board. 

‘‘(B) the regional entity otherwise satisfies the provisions of 

subsection (c)(1) and (2); and 

‘‘(C) the agreement promotes effective and efficient administration of bulk-power system reliability. 

The Commission may modify such delegation. The ERO and the 

Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an Interconnection-wide basis 

promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the ERO’s authority to enforce reliability standards under paragraph (1) directly to a regional entity consistent with the requirements of this paragraph. 

‘‘(5) The Commission may take such action as is necessary or appropriate against the ERO or a regional entity to ensure compliVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00023 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
24 

ance with a reliability standard or any Commission order affecting 

the ERO or a regional entity. 

‘‘(6) Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the violation and shall take into 

consideration the efforts of such user, owner, or operator to remedy 

the violation in a timely manner. 

‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZATION RULES.— The Electric Reliability Organization shall file with the Commission for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change 

to the rules of the ERO. A proposed rule or proposed rule change 

shall take effect upon a finding by the Commission, after notice 

and opportunity for comment, that the change is just, reasonable, 

not unduly discriminatory or preferential, is in the public interest, 

and satisfies the requirements of subsection (c). 

‘‘(g) RELIABILITY REPORTS.—The ERO shall conduct periodic assessments of the reliability and adequacy of the bulk-power system 

in North America. 

‘‘(h) COORDINATION WITH CANADA AND MEXICO.—The President 

is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance 

with reliability standards and the effectiveness of the ERO in the 

United States and Canada or Mexico. 

‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have authority to 

develop and enforce compliance with reliability standards for only 

the bulk-power system. 

‘‘(2) This section does not authorize the ERO or the Commission 

to order the construction of additional generation or transmission 

capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services. 

‘‘(3) Nothing in this section shall be construed to preempt any authority of any State to take action to ensure the safety, adequacy, 

and reliability of electric service within that State, as long as such 

action is not inconsistent with any reliability standard, except that 

the State of New York may establish rules that result in greater 

reliability within that State, as long as such action does not result 

in lesser reliability outside the State than that provided by the reliability standards.. 

‘‘(4) Within 90 days of the application of the Electric Reliability 

Organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability 

standard, taking into consideration any recommendation of the 

ERO. 

‘‘(5) The Commission, after consultation with the ERO and the 

State taking action, may stay the effectiveness of any State action, 

pending the Commission’s issuance of a final order. 

‘‘(j) REGIONAL ADVISORY BODIES.—The Commission shall establish a regional advisory body on the petition of at least 2⁄3 of the 

States within a region that have more than 1⁄2 of their electric load 

served within the region. A regional advisory body shall be composed of 1 member from each participating State in the region, appointed by the Governor of each State, and may include representatives of agencies, States, and provinces outside the United States. 

25 

A regional advisory body may provide advice to the Electric Reliability Organization, a regional entity, or the Commission regarding the governance of an existing or proposed regional entity within 

the same region, whether a standard proposed to apply within the 

region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the Commission. The Commission may 

give deference to the advice of any such regional advisory body if 

that body is organized on an Interconnection-wide basis. 

‘‘(k) ALASKA AND HAWAII.—The provisions of this section do not 

apply to Alaska or Hawaii.’’. 

(b) STATUS OF ERO.—The Electric Reliability Organization certified by the Federal Energy Regulatory Commission under section 

215(c) of the Federal Power Act and any regional entity delegated 

enforcement authority pursuant to section 215(e)(4) of that Act are 

not departments, agencies, or instrumentalities of the United 

States Government. 

(c) LIMITATION ON ANNUAL APPROPRIATIONS.—There is authorized to be appropriated not mroe than $50,000,000 per year for fiscal years 2006 through 2015 for all activities under the amendment 

made by subsection (a). 

Subtitle B—Transmission Operation 

Improvements 

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 

amended by inserting after section 211 the following new section: 

‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES. 

‘‘(a) TRANSMISSION SERVICES.—Subject to section 212(h), the 

Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services— 

‘‘(1) at rates that are comparable to those that the unregulated transmitting utility charges itself; and 

‘‘(2) on terms and conditions (not relating to rates) that are 

comparable to those under which such unregulated transmitting utility provides transmission services to itself and that are 

not unduly discriminatory or preferential. 

‘‘(b) EXEMPTION.—The Commission shall exempt from any rule or 

order under this section any unregulated transmitting utility 

that— 

‘‘(1) sells no more than 4,000,000 megawatt hours of electricity per year; or 

‘‘(2) does not own or operate any transmission facilities that 

are necessary for operating an interconnected transmission 

system (or any portion thereof); or 

‘‘(3) meets other criteria the Commission determines to be in 

the public interest. 

‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The requirements of subsection (a) shall not apply to facilities used in local distribution. 

26 

‘‘(d) EXEMPTION TERMINATION.—Whenever the Commission, after 

an evidentiary hearing held upon 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 (b) unreasonably impairs 

the continued reliability of an interconnected transmission system, 

it shall revoke the exemption granted to that transmitting utility. 

‘‘(e) APPLICATION TO UNREGULATED TRANSMITTING UTILITIES.— 

The rate changing procedures applicable to public utilities under 

subsections (c) and (d) of section 205 are applicable to unregulated 

transmitting utilities for purposes of this section. 

‘‘(f) REMAND.—In exercising its authority under paragraph (1) of 

subsection (a), the Commission may remand transmission rates to 

an unregulated transmitting utility for review and revision where 

necessary to meet the requirements of subsection (a). 

‘‘(g) OTHER REQUESTS.—The provision of transmission services 

under subsection (a) does not preclude a request for transmission 

services under section 211. 

‘‘(h) 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 (26 U.S.C. 141). 

‘‘(i) 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 an RTO or any other Commissionapproved independent transmission organization designated to provide nondiscriminatory transmission access. 

‘‘(j) DEFINITION.—For purposes of 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).’’. 

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION ORGANIZATIONS. 

(a) DEFINITIONS.—For purposes of this section— 

(1) APPROPRIATE FEDERAL REGULATORY AUTHORITY.—The 

term ‘‘appropriate Federal regulatory authority’’ means— 

(A) with respect to a Federal power marketing agency 

(as defined in the Federal Power Act), the Secretary of Energy, except that the Secretary may designate the Administrator of a Federal power marketing agency to act as the 

appropriate Federal regulatory authority with respect to 

the transmission system of that Federal power marketing 

agency; and 

(B) with respect to the Tennessee Valley Authority, the 

Board of Directors of the Tennessee Valley Authority. 

(2) FEDERAL UTILITY.—The term ‘‘Federal utility’’ means a 

Federal power marketing agency or the Tennessee Valley Authority. 

(3) TRANSMISSION SYSTEM.—The term ‘‘transmission system’’ 

means electric transmission facilities owned, leased, or contracted for by the United States and operated by a Federal 

utility. 

27 

(b) TRANSFER.—The appropriate Federal regulatory authority is 

authorized to enter into a contract, agreement or other arrangement transferring control and use of all or part of the Federal utility’s transmission system to an RTO or ISO (as defined in the Federal Power Act), approved by the Federal Energy Regulatory Commission. Such contract, agreement or arrangement shall include— 

(1) performance standards for operation and use of the transmission system that the head of the Federal utility determines 

necessary or appropriate, including standards that assure recovery of all the Federal utility’s costs and expenses related to 

the transmission facilities that are the subject of the contract, 

agreement or other arrangement; consistency with existing 

contracts and third-party financing arrangements; and consistency with said Federal utility’s statutory authorities, obligations, and limitations; 

(2) provisions for monitoring and oversight by the Federal 

utility of the RTO’s or ISO’s fulfillment of the terms and conditions of the contract, agreement or other arrangement, including a provision for the resolution of disputes through arbitration or other means with the regional transmission organization or with other participants, notwithstanding the obligations 

and limitations of any other law regarding arbitration; and 

(3) a provision that allows the Federal utility to withdraw 

from the RTO or ISO and terminate the contract, agreement 

or other arrangement in accordance with its terms. 

Neither this section, actions taken pursuant to it, nor any other 

transaction of a Federal utility using an RTO or ISO shall confer 

upon the Federal Energy Regulatory Commission jurisdiction or 

authority over the Federal utility’s electric generation assets, electric capacity or energy that the Federal utility is authorized by law 

to market, or the Federal utility’s power sales activities. 

(c) EXISTING STATUTORY AND OTHER OBLIGATIONS.— 

(1) SYSTEM OPERATION REQUIREMENTS.—No statutory provision requiring or authorizing a Federal utility to transmit electric power or to construct, operate or maintain its transmission 

system shall be construed to prohibit a transfer of control and 

use of its transmission system pursuant to, and subject to all 

requirements of subsection (b). 

(2) OTHER OBLIGATIONS.—This subsection shall not be construed to— 

(A) suspend, or exempt any Federal utility from, any 

provision of existing Federal law, including but not limited 

to any requirement or direction relating to the use of the 

Federal utility’s transmission system, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or 

(B) authorize abrogation of any contract or treaty obligation. 

(3) REPEAL.—Section 311 of title III of Appendix B of the Act 

of October 27, 2000 (P.L. 106–377, section 1(a)(2); 114 Stat. 

1441, 1441A–80; 16 U.S.C. 824n) is repealed. 

28 

Subtitle C—Amendments to PURPA 

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 

(a) ADOPTION OF STANDARDS.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 

by adding at the end the following: 

‘‘(11) NET METERING.—Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this 

paragraph, the term ‘net metering service’ means service to an 

electric consumer under which electric energy generated by 

that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used 

to offset electric energy provided by the electric utility to the 

electric consumer during the applicable billing period. 

‘‘(12) FUEL SOURCES.—Each electric utility shall develop a 

plan to minimize dependence on 1 fuel source and to ensure 

that the electric energy it sells to consumers is generated using 

a diverse range of fuels and technologies, including renewable 

technologies. 

‘‘(13) FOSSIL FUEL GENERATION EFFICIENCY.—Each electric 

utility shall develop and implement a 10-year plan to increase 

the efficiency of its fossil fuel generation.’’. 

(b) COMPLIANCE.— 

(1) TIME LIMITATIONS.—Section 112(b) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 

by adding at the end the following: 

‘‘(3)(A) Not later than 2 years after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred 

to in section 111, or set a hearing date for such consideration, with 

respect to each standard established by paragraphs (11) through 

(13) of section 111(d). 

‘‘(B) Not later than 3 years after the date of the enactment of this 

paragraph, each State regulatory authority (with respect to each 

electric utility for which it has ratemaking authority), and each 

nonregulated electric utility, shall complete the consideration, and 

shall make the determination, referred to in section 111 with respect to each standard established by paragraphs (11) through (13) 

of section 111(d).’’. 

(2) FAILURE TO COMPLY.—Section 112(c) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended 

by adding at the end the following: 

‘‘In the case of each standard established by paragraphs (11) 

through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be 

a reference to the date of enactment of such paragraphs (11) 

through (13).’’. 

(3) PRIOR STATE ACTIONS.— 

(A) IN GENERAL.—Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by 

adding at the end the following: 

29 

‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and (c) of this section shall not apply to the standards established by paragraphs 

(11) through (13) of section 111(d) in the case of any electric utility 

in a State if, before the enactment of this subsection— 

‘‘(1) the State has implemented for such utility the standard 

concerned (or a comparable standard); 

‘‘(2) the State regulatory authority for such State or relevant 

nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or 

‘‘(3) the State legislature has voted on the implementation of 

such standard (or a comparable standard) for such utility.’’. 

(B) CROSS REFERENCE.—Section 124 of such Act (16 

U.S.C. 2634) is amended by adding the following at the 

end thereof: ‘‘In the case of each standard established by 

paragraphs (11) through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the 

date of enactment of such paragraphs (11) through (13).’’. 

SEC. 1252. SMART METERING. 

(a) IN GENERAL.—Section 111(d) of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following: 

‘‘(14) TIME-BASED METERING AND COMMUNICATIONS.— 

‘‘(A) Not later than 18 months after the date of enactment of this paragraph, each electric utility shall offer 

each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule 

under which the rate charged by the electric utility varies 

during different time periods and reflects the variance, if 

any, in the utility’s costs of generating and purchasing 

electricity at the wholesale level. The time-based rate 

schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology. 

‘‘(B) The types of time-based rate schedules that may be 

offered under the schedule referred to in subparagraph (A) 

include, among others— 

‘‘(i) time-of-use pricing whereby electricity prices are 

set for a specific time period on an advance or forward 

basis, typically not changing more often than twice a 

year, based on the utility’s cost of generating and/or 

purchasing such electricity at the wholesale level for 

the benefit of the consumer. Prices paid for energy 

consumed during these periods shall be pre-established and known to consumers in advance of such 

consumption, allowing them to vary their demand and 

usage in response to such prices and manage their energy costs by shifting usage to a lower cost period or 

reducing their consumption overall; 

‘‘(ii) critical peak pricing whereby time-of-use prices 

are in effect except for certain peak days, when prices 

may reflect the costs of generating and/or purchasing 

electricity at the wholesale level and when consumers 

30 

may receive additional discounts for reducing peak period energy consumption; and 

‘‘(iii) real-time pricing whereby electricity prices are 

set for a specific time period on an advanced or forward basis, reflecting the utility’s cost of generating 

and/or purchasing electricity at the wholesale level, 

and may change as often as hourly. 

‘‘(C) Each electric utility subject to subparagraph (A) 

shall provide each customer requesting a time-based rate 

with a time-based meter capable of enabling the utility 

and customer to offer and receive such rate, respectively. 

‘‘(D) For purposes of implementing this paragraph, any 

reference contained in this section to the date of enactment 

of the Public Utility Regulatory Policies Act of 1978 shall 

be deemed to be a reference to the date of enactment of 

this paragraph. 

‘‘(E) In a State that permits third-party marketers to sell 

electric energy to retail electric consumers, such consumers 

shall be entitled to receive the same time-based metering 

and communications device and service as a retail electric 

consumer of the electric utility. 

‘‘(F) Notwithstanding subsections (b) and (c) of section 

112, each State regulatory authority shall, not later than 

18 months after the date of enactment of this paragraph 

conduct an investigation in accordance with section 115(i) 

and issue a decision whether it is appropriate to implement the standards set out in subparagraphs (A) and (C).’’. 

(b) STATE INVESTIGATION OF DEMAND RESPONSE AND TIME-BASED

METERING.—Section 115 of the Public Utilities Regulatory Policies 

Act of 1978 (16 U.S.C. 2625) is amended as follows: 

(1) By inserting in subsection (b) after the phrase ‘‘the standard for time-of-day rates established by section 111(d)(3)’’ the 

following: ‘‘and the standard for time-based metering and communications established by section 111(d)(14)’’. 

(2) By inserting in subsection (b) after the phrase ‘‘are likely 

to exceed the metering’’ the following: ‘‘and communications’’. 

(3) By adding the at the end the following: 

‘‘(i) TIME-BASED METERING AND COMMUNICATIONS.—In making a 

determination with respect to the standard established by section 

111(d)(14), the investigation requirement of section 111(d)(14)(F) 

shall be as follows: Each State regulatory authority shall conduct 

an investigation and issue a decision whether or not it is appropriate for electric utilities to provide and install time-based meters 

and communications devices for each of their customers which enable such customers to participate in time-based pricing rate schedules and other demand response programs.’’. 

(c) FEDERAL ASSISTANCE ON DEMAND RESPONSE.—Section 132(a) 

of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

2642(a)) is amended by striking ‘‘and’’ at the end of paragraph (3), 

striking the period at the end of paragraph (4) and inserting ‘‘; 

and’’, and by adding the following at the end thereof: 

‘‘(5) technologies, techniques, and rate-making methods related to advanced metering and communications and the use 

of these technologies, techniques and methods in demand response programs.’’. 

31 

(d) FEDERAL GUIDANCE.—Section 132 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended by adding 

the following at the end thereof: 

‘‘(d) DEMAND RESPONSE.—The Secretary shall be responsible 

for— 

‘‘(1) educating consumers on the availability, advantages, 

and benefits of advanced metering and communications technologies, including the funding of demonstration or pilot 

projects; 

‘‘(2) working with States, utilities, other energy providers 

and advanced metering and communications experts to identify 

and address barriers to the adoption of demand response programs; and 

‘‘(3) not later than 180 days after the date of enactment of 

the Energy Policy Act of 2005, providing Congress with a report that identifies and quantifies the national benefits of demand response and makes a recommendation on achieving specific levels of such benefits by January 1, 2007.’’. 

(e) DEMAND RESPONSE AND REGIONAL COORDINATION.— 

(1) IN GENERAL.—It is the policy of the United States to encourage States to coordinate, on a regional basis, State energy 

policies to provide reliable and affordable demand response 

services to the public. 

(2) TECHNICAL ASSISTANCE.—The Secretary of Energy shall 

provide technical assistance to States and regional organizations formed by 2 or more States to assist them in— 

(A) identifying the areas with the greatest demand response potential; 

(B) identifying and resolving problems in transmission 

and distribution networks, including through the use of demand response; 

(C) developing plans and programs to use demand response to respond to peak demand or emergency needs; 

and 

(D) identifying specific measures consumers can take to 

participate in these demand response programs. 

(3) REPORT.—Not later than 1 year after the date of enactment of the Energy Policy Act of 2005, the Commission shall 

prepare and publish an annual report, by appropriate region, 

that assesses demand response resources, including those 

available from all consumer classes, and which identifies and 

reviews— 

(A) saturation and penetration rate of advanced meters 

and communications technologies, devices and systems; 

(B) existing demand response programs and time-based 

rate programs; 

(C) the annual resource contribution of demand resources; 

(D) the potential for demand response as a quantifiable, 

reliable resource for regional planning purposes; and 

(E) steps taken to ensure that, in regional transmission 

planning and operations, demand resources are provided 

equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, 

transmission provider, or transmitting party. 

32 

(f) FEDERAL ENCOURAGEMENT OF DEMAND RESPONSE DEVICES.— 

It is the policy of the United States that time-based pricing and 

other forms of demand response, whereby electricity customers are 

provided with electricity price signals and the ability to benefit by 

responding to them, shall be encouraged, and the deployment of 

such technology and devices that enable electricity customers to 

participate in such pricing and demand response systems shall be 

facilitated. It is further the policy of the United States that the 

benefits of such demand response that accrue to those not deploying such technology and devices, but who are part of the same regional electricity entity, shall be recognized. 

(g) TIME LIMITATIONS.—Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding at the end the following: 

‘‘(4)(A) Not later than 1 year after the enactment of this 

paragraph, each State regulatory authority (with respect to 

each electric utility for which it has ratemaking authority) and 

each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for such 

consideration, with respect to the standard established by 

paragraph (14) of section 111(d). 

‘‘(B) Not later than 2 years after the date of the enactment 

of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete 

the consideration, and shall make the determination, referred 

to in section 111 with respect to the standard established by 

paragraph (14) of section 111(d).’’. 

(h) FAILURE TO COMPLY.—Section 112(c) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by 

adding at the end the following: 

‘‘In the case of the standard established by paragraph (14) of section 111(d), the reference contained in this subsection to the date 

of enactment of this Act shall be deemed to be a reference to the 

date of enactment of such paragraph (14).’’. 

(i) PRIOR STATE ACTIONS REGARDING SMART METERING STANDARDS.— 

(1) IN GENERAL.—Section 112 of the Public Utility Regulatory 

Policies Act of 1978 (16 U.S.C. 2622) is amended by adding at 

the end the following: 

‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and (c) of this section 

shall not apply to the standard established by paragraph (14) of 

section 111(d) in the case of any electric utility in a State if, before 

the enactment of this subsection— 

‘‘(1) the State has implemented for such utility the standard 

concerned (or a comparable standard); 

‘‘(2) the State regulatory authority for such State or relevant 

nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility within the previous 3 years; 

or 

‘‘(3) the State legislature has voted on the implementation of 

such standard (or a comparable standard) for such utility within the previous 3 years.’’. 

33 

(2) CROSS REFERENCE.—Section 124 of such Act (16 U.S.C. 

2634) is amended by adding the following at the end thereof: 

‘‘In the case of the standard established by paragraph (14) of 

section 111(d), the reference contained in this subsection to the 

date of enactment of this Act shall be deemed to be a reference 

to the date of enactment of such paragraph (14).’’. 

Subtitle D—Market Transparency, 

Enforcement, and Consumer Protection 

SEC. 1282. MARKET MANIPULATION. 

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 

amended by adding at the end the following: 

‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 

‘‘No person or other 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 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 such Federal agency. 

‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 

‘‘(a) PROHIBITION.—No person or other entity (including an entity 

described in section 201(f)) shall willfully and knowingly enter into 

any contract or other arrangement to execute a ‘round trip trade’ 

for the purchase or sale of electric energy at wholesale. 

‘‘(b) DEFINITION.—For the purposes of this section, the term 

‘round trip trade’ means a transaction, or combination of transactions, in which a person or any other entity— 

‘‘(1) enters into a contract or other arrangement to purchase 

from, or sell to, any other person or other entity electric energy 

at wholesale; 

‘‘(2) simultaneously with entering into the contract or arrangement described in paragraph (1), arranges a financially 

offsetting trade with such other person or entity for the same 

such electric energy, at the same location, price, quantity and 

terms so that, collectively, the purchase and sale transactions 

in themselves result in no financial gain or loss; and 

‘‘(3) enters into the contract or arrangement with a specific 

intent to fraudulently affect reported revenues, trading volumes, or prices.’’. 

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES. 

(a) UNLAWFUL ACTS.—It shall be unlawful for any entity, directly 

or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails to use or employ, in the transmission of electric energy in interstate commerce, the sale of electric energy at wholesale in interstate commerce, the transportation 

of natural gas in interstate commerce, or the sale in interstate commerce of natural gas for resale for ultimate public consumption for 

domestic, commercial, industrial, or any other use, any fraudulent, 

manipulative, or deceptive device or contrivance in contravention of 

such rules and regulations as the Federal Energy Regulatory ComVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00033 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
34 

mission may prescribe as necessary or appropriate in the public interest. 

(b) APPLICATION OF FEDERAL POWER ACT TO THIS ACT.—The provisions of section 307 through 309 and 313 through 317 of the Federal Power Act shall apply to violations of the Electric Reliability 

Act of 2005 in the same manner and to the same extent as such 

provisions apply to entities subject to Part II of the Federal Power 

Act. 

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC UNDER FEDERAL POWER ACT. 

Part III of the Federal Power Act is amended by inserting the 

following new section after section 319 and by redesignating sections 320 and 321 as sections 321 and 322, respectively: 

‘‘SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC. 

‘‘(a) RULE REQUIRED FOR CERTAIN WAIVERS, EXEMPTIONS, ETC.— 

Not later than 6 months after the enactment of this Act, the Commission shall promulgate a rule establishing specific criteria for 

providing an exemption, waiver, or other reduced or abbreviated 

form of compliance with the requirements of sections 204, 301, 304, 

and 305 (including any prospective blanket order). Such criteria 

shall be sufficient to insure that any such action taken by the Commission will be consistent with the purposes of such requirements 

and will otherwise protect the public interest. 

‘‘(b) MORATORIUM ON CERTAIN WAIVERS, EXEMPTIONS, ETC.— 

After the date of enactment of this section, the Commission may 

not issue, adopt, order, approve, or promulgate any exemption, 

waiver, or other reduced or abbreviated form of compliance with 

the requirements of section 204, 301, 304, or 305 (including any 

prospective blanket order) until after the rule promulgated under 

subsection (a) has taken effect. 

‘‘(c) PREVIOUS FERC ACTION.—The Commission shall undertake a 

review, by rule or order, of each exemption, waiver, or other reduced or abbreviated form of compliance described in subsection (a) 

that was taken before the date of enactment of this section. No 

such action may continue in force and effect after the date 18 

months after the date of enactment of this section unless the Commission finds that such action complies with the rule under subsection (a). 

‘‘(d) EXEMPTION UNDER 204(F) NOT APPLICABLE.—For purposes of 

this section, in applying section 204, the provisions of section 204(f) 

shall not apply.’’. 

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES 

AND TRANSMISSION. 

(a) AUDIT TRAILS.—Section 304 of the Federal Power Act is 

amended by adding the following new subsection at the end thereof: 

‘‘(c)(1) The Commission shall, by rule or order, require each person or other entity engaged in the transmission of electric energy 

in interstate commerce or the sale of electric energy at wholesale 

in interstate commerce, and each broker, dealer, and power marketer involved in any such transmission or sale, to maintain, and 

periodically submit to the Commission, such records, in electronic 

form, of each transaction relating to such transmission or sale as 

may be necessary to determine whether any person has employed 

35 

any fraudulent, manipulative, or deceptive device or contrivance in 

contravention of rules promulgated by the Commission. 

‘‘(2) Section 201(f) shall not limit the application of this subsection.’’. 

(b) NATURAL GAS.—Section 8 of the Natural Gas Act is amended 

by adding the following new subsection at the end thereof: 

‘‘(d) The Commission shall, by rule or order, require each person 

or other entity engaged in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and each broker, dealer, and 

power marketer involved in any such transportation or sale, to 

maintain, and periodically submit to the Commission, such records, 

in electronic form, of each transaction relating to such transmission 

or sale as may be necessary to determine whether any person has 

employed any fraudulent, manipulative, or deceptive device or contrivance in contravention of rules promulgated by the Commission.’’. 

SEC. 1286. TRANSPARENCY. 

(a) DEFINITION.—As used in this section the term ‘‘electric power 

or natural gas information processor’’ means any person engaged in 

the business of— 

(1) collecting, processing, or preparing for distribution or 

publication, or assisting, participating in, or coordinating the 

distribution or publication of, information with respect to 

transactions in or quotations involving the purchase or sale of 

electric power, natural gas, the transmission of electric energy, 

or the transportation of natural gas, or 

(2) distributing or publishing (whether by means of a ticker 

tape, a communications network, a terminal display device, or 

otherwise) on a current and continuing basis, information with 

respect to such transactions or quotations. 

The term does not include any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, any self-regulatory organization, any bank, broker, dealer, 

building and loan, savings and loan, or homestead association, or 

cooperative bank, if such bank, broker, dealer, association, or cooperative bank would be deemed to be an electric power or natural 

gas information processor solely by reason of functions performed 

by such institutions as part of customary banking, brokerage, dealing, association, or cooperative bank activities, or any common carrier, as defined in section 3 of the Communications Act of 1934, 

subject to the jurisdiction of the Federal Communications Commission or a State commission, as defined in section 3 of that Act, unless the Commission determines that such carrier is engaged in the 

business of collecting, processing, or preparing for distribution or 

publication, information with respect to transactions in or 

quotations involving the purchase or sale of electric power, natural 

gas, the transmission of electric energy, or the transportation of 

natural gas. 

(b) PROHIBITION.—No electric power or natural gas information 

processor may make use of the mails or any means or instrumentality of interstate commerce— 

(1) to collect, process, distribute, publish, or prepare for distribution or publication any information with respect to 

36 

quotations for, or transactions involving the purchase or sale 

of electric power, natural gas, the transmission of electric energy, or the transportation of natural gas, or 

(2) to assist, participate in, or coordinate the distribution or 

publication of such information in contravention of such rules 

and regulations as the Federal Energy Regulatory Commission 

shall prescribe as necessary or appropriate in the public interest to 

(A) prevent the use, distribution, or publication of fraudulent, deceptive, or manipulative information with respect 

to quotations for and transactions involving the purchase 

or sale of electric power, natural gas, the transmission of 

electric energy, or the transportation of natural gas; 

(B) assure the prompt, accurate, reliable, and fair collection, processing, distribution, and publication of information with respect to quotations for and transactions involving the purchase or sale of electric power, natural gas, the 

transmission of electric energy, or the transportation of 

natural gas, and the fairness and usefulness of the form 

and content of such information; 

(C) assure that all such information processors may, for 

purposes of distribution and publication, obtain on fair and 

reasonable terms such information with respect to 

quotations for and transactions involving the purchase or 

sale of electric power, natural gas, the transmission of 

electric energy, or the transportation of natural gas as is 

collected, processed, or prepared for distribution or publication by any exclusive processor of such information acting in such capacity; 

(D) assure that, subject to such limitations as the Commission, by rule, may impose as necessary or appropriate 

for the maintenance of fair and orderly markets, all persons may obtain on terms which are not unreasonably discriminatory such information with respect to quotations 

for and transactions involving the purchase or sale of electric power, natural gas, the transmission of electric energy, 

or the transportation of natural gas as is published or distributed by any electric power or natural gas information 

processor; 

(E) assure that all electricity and natural gas electronic 

communication networks transmit and direct orders for 

the purchase and sale of electricity or natural gas in a 

manner consistent with the establishment and operation of 

an efficient, fair, and orderly market system for electricity 

and natural gas; and 

(F) assure equal regulation of all markets involving the 

purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural 

gas and all persons effecting transactions involving the 

purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural 

gas. 

(c) RELATED COMMODITIES.—For purposes of this section, the 

phrase ‘‘purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural gas’’ inVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00036 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
37 

cludes the purchase or sale of any commodity (as defined in the 

Commodities Exchange Act) relating to any such purchase or sale 

if such commodity is excluded from regulation under the Commodities Exchange Act pursuant to section 2 of that Act. 

(d) PROHIBITION.—No person who owns, controls, or is under the 

control or ownership of a public utility, a natural gas company, or 

a public utility holding company may own, control, or operate any 

electronic computer network or other mulitateral trading facility 

utilized to trade electricity or natural gas. 

SEC. 1287. PENALTIES. 

(a) CRIMINAL PENALTIES.—Section 316 of the Federal Power Act 

(16 U.S.C. 825o(c)) is amended as follows: 

(1) By striking ‘‘$5,000’’ in subsection (a) and inserting ‘‘$5,000,000 for an individual and $25,000,000 for any other defendant’’ and by striking out ‘‘two years’’ and inserting ‘‘five 

years’’ . (2) By striking ‘‘$500’’ in subsection (b) and inserting ‘‘$1,000,000’’. 

(3) By striking subsection (c). 

(b) CIVIL PENALTIES.—Section 316A of the Federal Power Act (16 

U.S.C. 825o091) is amended as follows: 

(1) By striking ‘‘section 211, 212, 213, or 214’’ each place it 

appears and inserting ‘‘Part II’’. (2) By striking ‘‘$10,000 for each day that such violation con- tinues’’ and inserting ‘‘the greater of $1,000,000 or three times 

the profit made or gain or loss avoided by reason of such violation’’. 

(3) By adding the following at the end thereof: 

‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PERSONS FROM CERTAIN

ACTIVITIES.—In any proceeding under this section, the court may 

censure, place limitations on the activities, functions, or operations 

of, suspend or revoke the ability of any entity (without regard to 

section 201(f)) to participate in the transmission of electric energy 

in interstate commerce or the sale of electric energy at wholesale 

in interstate commerce if it finds that such censure, placing of limitations, suspension, or revocation is in the public interest and that 

one or more of the following applies to such entity: 

‘‘(1) Such entity has willfully made or caused to be made in 

any application or report required to be filed with the Commission or with any other appropriate regulatory agency, or in any 

proceeding before the Commission, any statement which 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, or has omitted to state in any such application or report 

any material fact which is required to be stated therein. 

‘‘(2) Such entity has been convicted of any felony or misdemeanor or of a substantially equivalent crime by a foreign 

court of competent jurisdiction which the court finds— 

‘‘(A) involves the purchase or sale of electricity, the taking of a false oath, the making of a false report, bribery, 

perjury, burglary, any substantially equivalent activity 

however denominated by the laws of the relevant foreign 

government, or conspiracy to commit any such offense; 

‘‘(B) arises out of the conduct of the business of transmitting electric energy in interstate commerce or selling or 

38 

purchasing electric energy at wholesale in interstate commerce; 

‘‘(C) involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds, 

or securities, or substantially equivalent activity however 

denominated by the laws of the relevant foreign government; or 

‘‘(D) involves the violation of section 152, 1341, 1342, or 

1343 or chapter 25 or 47 of title 18, United States Code, 

or a violation of a substantially equivalent foreign statute. 

‘‘(3) Such entity is permanently or temporarily enjoined by 

order, judgment, or decree of any court of competent jurisdiction from acting as an investment adviser, underwriter, broker, 

dealer, municipal securities dealer, government securities 

broker, government securities dealer, transfer agent, foreign 

person performing a function substantially equivalent to any of 

the above, or entity or person required to be registered under 

the Commodity Exchange Act or any substantially equivalent 

foreign statute or regulation, or as an affiliated person or employee of any investment company, bank, insurance company, 

foreign entity substantially equivalent to any of the above, or 

entity or person required to be registered under the Commodity Exchange Act or any substantially equivalent foreign 

statute or regulation, or from engaging in or continuing any 

conduct or practice in connection with any such activity, or in 

connection with the purchase or sale of any security. 

‘‘(4) Such entity has willfully violated any provision of this 

Act. 

‘‘(5) Such entity has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person 

of any provision of this Act, or has failed reasonably to supervise, with a view to preventing violations of the provisions of 

this Act, another person who commits such a violation, if such 

other person is subject to his supervision. For the purposes of 

this paragraph no person shall be deemed to have failed reasonably to supervise any other person, if— 

‘‘(A) there have been established procedures, and a system for applying such procedures, which would reasonably 

be expected to prevent and detect, insofar as practicable, 

any such violation by such other person, and 

‘‘(B) such person has reasonably discharged the duties 

and obligations incumbent upon him by reason of such procedures and system without reasonable cause to believe 

that such procedures and system were not being complied 

with. 

‘‘(6) Such entity has been found by a foreign financial or energy regulatory authority to have— 

‘‘(A) made or caused to be made in any application or report required to be filed with a foreign regulatory authority, or in any proceeding before a foreign financial or energy regulatory authority, any statement that 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, or has omitted to state in any application or report 

39 

to the foreign regulatory authority any material fact that 

is required to be stated therein; 

‘‘(B) violated any foreign statute or regulation regarding 

the transmission or sale of electricity or natural gas; 

‘‘(C) aided, abetted, counseled, commanded, induced, or 

procured the violation by any person of any provision of 

any statutory provisions enacted by a foreign government, 

or rules or regulations thereunder, empowering a foreign 

regulatory authority regarding transactions in electricity 

or natural gas, or contracts of sale of electricity or natural 

gas, traded on or subject to the rules of a contract market 

or any board of trade, or has been found, by a foreign regulatory authority, to have failed 

reasonably to supervise, with a view to preventing violations of 

such statutory provisions, rules, and regulations, another person who commits such a violation, if such other person is subject to his supervision. 

‘‘(7) Such entity is subject to any final order of a State commission (or any agency or officer performing like functions), 

State authority that supervises or examines banks, savings associations, or credit unions, State insurance commission (or 

any agency or office performing like functions), an appropriate 

Federal banking agency (as defined in section 3 of the Federal 

Deposit Insurance Act (12 U.S.C. 1813(q))), or the National 

Credit Union Administration, that— 

‘‘(A) bars such person from association with an entity 

regulated by such commission, authority, agency, or officer, or from engaging in the business of securities, insurance, banking, savings association activities, or credit 

union activities; or 

‘‘(B) constitutes a final order based on violations of any 

laws or regulations that prohibit fraudulent, manipulative, 

or deceptive conduct.’’ 

(4) Such entity is subject to statutory disqualification within 

the meaning of section 3(a)(39) of the Securities Exchange Act 

of 1934. 

(c) NATURAL GAS ACT PENALTIES.—Section 21 of the Natural Gas 

Act is amended by adding the following new subsection at the end 

thereof: 

‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PERSONS FROM CERTAIN

ACTIVITIES.—In any proceeding under this section, the court may 

censure, place limitations on the activities, functions, or operations 

of, suspend or revoke the ability of any entity (without regard to 

section 201(f)) to participate in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use if it finds that such censure, 

placing of limitations, suspension, or revocation is in the public interest and that one or more of the following applies to such entity: 

‘‘(1) Such entity has willfully made or caused to be made in 

any application or report required to be filed with the Commission or with any other appropriate regulatory agency, or in any 

proceeding before the Commission, any statement which was 

at the time and in the light of the circumstances under which 

it was made false or misleading with respect to any material 

40 

fact, or has omitted to state in any such application or report 

any material fact which is required to be stated therein. 

‘‘(2) Such entity has been convicted of any felony or misdemeanor or of a substantially equivalent crime by a foreign 

court of competent jurisdiction which the court finds— 

‘‘(A) involves the purchase or sale of natural gas, the 

taking of a false oath, the making of a false report, bribery, perjury, burglary, any substantially equivalent activity however denominated by the laws of the relevant foreign government, or conspiracy to commit any such offense; 

‘‘(B) arises out of the conduct of the business of transmitting natural gas in interstate commerce, or the selling in 

interstate commerce of natural gas for resale for ultimate 

public consumption for domestic, commercial, industrial, or 

any other use; 

‘‘(C) involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds, 

or securities, or substantially equivalent activity however 

denominated by the laws of the relevant foreign government; or 

‘‘(D) involves the violation of section 152, 1341, 1342, or 

1343 or chapter 25 or 47 of title 18, United States Code, 

or a violation of a substantially equivalent foreign statute. 

‘‘(3) Such entity is permanently or temporarily enjoined by 

order, judgment, or decree of any court of competent jurisdiction from acting as an investment adviser, underwriter, broker, 

dealer, municipal securities dealer, government securities 

broker, government securities dealer, transfer agent, foreign 

person performing a function substantially equivalent to any of 

the above, or entity or person required to be registered under 

the Commodity Exchange Act or any substantially equivalent 

foreign statute or regulation, or as an affiliated person or employee of any investment company, bank, insurance company, 

foreign entity substantially equivalent to any of the above, or 

entity or person required to be registered under the Commodity Exchange Act or any substantially equivalent foreign 

statute or regulation, or from engaging in or continuing any 

conduct or practice in connection with any such activity, or in 

connection with the purchase or sale of any security. 

‘‘(4) Such entity has willfully violated any provision of this 

Act. 

‘‘(5) Such entity has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person 

of any provision of this Act, or has failed reasonably to supervise, with a view to preventing violations of the provisions of 

this Act, another person who commits such a violation, if such 

other person is subject to his supervision. For the purposes of 

this paragraph no person shall be deemed to have failed reasonably to supervise any other person, if— 

‘‘(A) there have been established procedures, and a system for applying such procedures, which would reasonably 

be expected to prevent and detect, insofar as practicable, 

any such violation by such other person, and 

41 

‘‘(B) such person has reasonably discharged the duties 

and obligations incumbent upon him by reason of such procedures and system without reasonable cause to believe 

that such procedures and system were not being complied 

with. 

‘‘(6) Such entity has been found by a foreign financial or energy regulatory authority to have— 

‘‘(A) made or caused to be made in any application or report required to be filed with a foreign regulatory authority, or in any proceeding before a foreign financial or energy regulatory authority, any statement that 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, or has omitted to state in any application or report 

to the foreign regulatory authority any material fact that 

is required to be stated therein; 

‘‘(B) violated any foreign statute or regulation regarding 

the transmission or sale of electricity or natural gas; 

‘‘(C) aided, abetted, counseled, commanded, induced, or 

procured the violation by any person of any provision of 

any statutory provisions enacted by a foreign government, 

or rules or regulations thereunder, empowering a foreign 

regulatory authority regarding transactions in electricity 

or natural gas, or contracts of sale of electricity or natural 

gas, traded on or subject to the rules of a contract market 

or any board of trade, or has been found, by a foreign regulatory authority, to have failed reasonably to supervise, 

with a view to preventing violations of such statutory provisions, rules, and regulations, another person who commits such a violation, if such other person is subject to his 

supervision. 

‘‘(7) Such entity is subject to any final order of a State commission (or any agency or officer performing like functions), 

State authority that supervises or examines banks, savings associations, or credit unions, State insurance commission (or 

any agency or office performing like functions), an appropriate 

Federal banking agency (as defined in section 3 of the Federal 

Deposit Insurance Act (12 U.S.C. 1813(q))), or the National 

Credit Union Administration, that— 

‘‘(A) bars such person from association with an entity 

regulated by such commission, authority, agency, or officer, or from engaging in the business of securities, insurance, banking, savings association activities, or credit 

union activities; or 

‘‘(B) constitutes a final order based on violations of any 

laws or regulations that prohibit fraudulent, manipulative, 

or deceptive conduct. 

‘‘(8) Such entity is subject to statutory disqualification within 

the meaning of section 3(a)(39) of the Securities Exchange Act 

of 1934.’’. 

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS. 

Not later than 12 months after the enactment of this Act the Securities and Exchange Commission shall review each exemption 

granted to any person under section 3(a) of the Public Utility Holding Company Act of 1935 and shall review the action of persons opVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00041 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
42 

erating pursuant to a claim of exempt status under section 3 to determine if such exemptions and claims are consistent with the requirements of such section 3(a) and whether or not such exemptions or claims of exemption should continue in force and effect. 

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN 

ENERGY TRADING. 

Not later than 12 months after the enactment of this Act, the 

Comptroller General of the United States shall submit to the Congress a report of the results of its review of accounting for contracts 

in energy trading and risk management activities. The review and 

report shall include, among other issues, the use of mark-to-market 

accounting and when gains and losses should be recognized, with 

a view toward improving the transparency of energy trading activities for the benefit of investors, consumers, and the integrity of 

these markets. 

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES. 

Section 205 of the Federal Power Act is amended by adding after 

subsection (f) the following new subsection: 

‘‘(g) RULES AND PROCEDURES TO PROTECT CONSUMERS OF PUBLIC

UTILITIES.—Not later than 9 months after the date of enactment of 

this Act, the Commission shall adopt rules and procedures for the 

protection of electric consumers from self-dealing, interaffiliate 

abuse, and other harmful actions taken by persons owning or controlling public utilities. Such rules shall ensure that no asset of a 

public utility company shall be used as collateral for indebtedness 

incurred by the holding company of, and any affiliate of, such public utility company, and no public utility shall acquire or own any 

securities of the holding company or other affiliates of the holding 

company unless the Commission has determined that such acquisition or ownership is consistent with the public interest and the protection of consumers of such public utility.’’. 

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT. 

Section 206(b) of the Federal Power Act is amended as follows: 

(1) By amending the first sentence to read as follows: ‘‘In any 

proceeding under this section, the refund effective date shall be 

the date of the filing of a complaint or the date of the Commission motion initiating the proceeding, except that in the case 

of a complaint with regard to market-based rates, the Commission may establish an earlier refund effective date.’’. 

(2) By striking the second and third sentences. 

(3) By striking out ‘‘the refund effective date or by’’ and ‘‘, 

whichever is earlier,’’ in the fifth sentence. 

(4) In the seventh sentence by striking ‘‘through a date fifteen months after such refund effective date’’ and insert ‘‘and 

prior to the conclusion of the proceeding’’ and by striking the 

proviso. 

SEC. 1292. ACCOUNTS AND REPORTS. 

Section 318 of the Federal Power Act is amended by adding the 

following at the end thereof: ‘‘This section shall not apply to sections 301 and 304 of this Act.’’. 

SEC. 1293. MARKET-BASED RATES. 

Section 205 of the Federal Power Act is amended by adding the 

following new subsection at the end thereof: 

43 

‘‘(g) For each public utility granted the authority by the Commission to sell electric energy at market-based rates, the Commission 

shall review the activities and characteristics of such utility not 

less frequently than annually to determine whether such rates are 

just and reasonable. Each such utility shall notify the Commission 

promptly of any change in the activities and characteristics relied 

upon by the Commission in granting such public utility the authority to sell electric energy at market-based rates. If the Commission 

finds that: 

‘‘(1) a rate charged by a public utility authorized to sell electric energy at market-based rates is unjust, unreasonable, unduly discriminatory or preferential, 

‘‘(2) the public utility has intentionally engaged in an activity 

that violates any other rule, tariff, or order of the Commission, 

or 

‘‘(3) any violation of the Electric Reliability Act of 2005, 

the Commission shall issue an order immediately modifying or revoking the authority of that public utility to sell electric energy at 

market-based rates.’’. 

SEC. 1294. ENFORCEMENT. 

(a) COMPLAINTS.—Section 306 of the Federal Power Act (16 

U.S.C. 825e) is amended as follows: 

(1) By inserting ‘‘electric utility,’’ after ‘‘Any person,’’. 

(2) By inserting ‘‘, transmitting utility,’’ after ‘‘licensee’’ each 

place it appears. 

(b) REVIEW OF COMMISSION ORDERS.—Section 313(a) of the Federal Power Act (16 U.S.C. 8251) is amended by inserting ‘‘electric 

utility,’’ after ‘‘person,’’ in the first 2 places it appears and by striking ‘‘any person unless such person’’ and inserting ‘‘any entity unless such entity’’. 

(c) INVESTIGATIONS.—Section 307(a) of the Federal Power Act (16 

U.S.C. 825f(a)) is amended as follows: 

(1) By inserting ‘‘, electric utility, transmitting utility, or 

other entity’’ after ‘‘person’’ each time it appears. 

(2) By striking the period at the end of the first sentence and 

inserting the following: ‘‘or in obtaining information about the 

sale of electric energy at wholesale in interstate commerce and 

the transmission of electric energy in interstate commerce.’’. 

SEC. 1295. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES. 

(a) PRIVACY.—The Federal Trade Commission may issue rules 

protecting the privacy of electric consumers from the disclosure of 

consumer information obtained in connection with the sale or delivery of electric energy to electric consumers. 

(b) SLAMMING.—The Federal Trade Commission may issue rules 

prohibiting the change of selection of an electric utility except with 

the informed consent of the electric consumer or if approved by the 

appropriate State regulatory authority. 

(c) CRAMMING.—The Federal Trade Commission may issue rules 

prohibiting the sale of goods and services to an electric consumer 

unless expressly authorized by law or the electric consumer. 

(d) RULEMAKING.—The Federal Trade Commission shall proceed 

in accordance with section 553 of title 5, United States Code, when 

prescribing a rule under this section. 

44 

(e) STATE AUTHORITY.—If the Federal Trade Commission determines that a State’s regulations provide equivalent or greater protection than the provisions of this section, such State regulations 

shall apply in that State in lieu of the regulations issued by the 

Commission under this section. 

(f) DEFINITIONS.—For purposes of this section: 

(1) STATE REGULATORY AUTHORITY.—The term ‘‘State regulatory authority’’ has the meaning given that term in section 

3(21) of the Federal Power Act (16 U.S.C. 796(21)). 

(2) ELECTRIC CONSUMER AND ELECTRIC UTILITY.—The terms 

‘‘electric consumer’’ and ‘‘electric utility’’ have the meanings 

given those terms in section 3 of the Public Utility Regulatory 

Policies Act of 1978 (16 U.S.C. 2602). 

‘‘(d) The Commission shall, by rule or order, require each person 

or other entity engaged in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and each broker, dealer, and 

power marketer involved in any such transportation or sale, to 

maintain, and periodically submit to the Commission, such records, 

in electronic form, of each transaction relating to such transmission 

or sale as may be necessary to determine whether any person has 

employed any fraudulent, manipulative, or deceptive device or contrivance in contravention of rules promulgated by the Commission.’’. 

SEC. 1296. SAVINGS PROVISION. 

Nothing in this title or in any amendment made by this title 

shall be construed to affect the authority of any court to make a 

determination in any proceeding commenced before the enactment 

of this Act regarding the authority of the Federal Energy Regulatory Commission to permit any person to sell or distribute electric energy at market-based rates. 

3. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE MARKEY

OF MASSACHUSETTS, OR HIS DESIGNEE, DEBATABLE FOR 30 MIN- UTES

Strike title XXII. 

4. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BOEHLERT

OF NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 20 MINUTES

In title VII, at the end of subtitle E, add the following: 

SEC. 775. AVERAGE FUEL ECONOMY STANDARDS. 

(a) PURPOSE.—The purpose of this section is to seek to save each 

year after 2014 10 percent of the oil that would otherwise be used 

for fuel by automobiles in the United States if average fuel economy standards remained at the same level as the standards that 

apply for model year 2007. 

(b) IN GENERAL.—Section 32902 of title 49, United States Code, 

is amended by redesignating subsections (i) and (j) in order as subsections (j) and (k), and by inserting after subsection (h) the following: 

‘‘(i) STANDARDS FOR MODEL YEARS AFTER 2007.—The Secretary 

of Transportation shall prescribe by regulation average fuel econVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00044 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
45 

omy standards for automobiles manufactured by a manufacturer in 

model years after model year 2007, that shall— 

‘‘(1) ensure that the average fuel economy achieved by automobiles manufactured by a manufacturer in model years after 

2014 is no less than 33 miles per gallon; 

‘‘(2) ensure that improvements to fuel economy standards do 

not degrade the safety of automobiles manufactured by a manufacturer; and 

‘‘(3) maximize the retention of jobs in the automobile manufacturing sector of the United States.’’. 

(c) CONFORMING AMENDMENTS.—Such section is further amended— 

(1) in subsection (c)(1) in the first sentence by inserting ‘‘and 

subsection (i)’’ after ‘‘of this subsection’’; and 

(2) in subsection (k) (as redesignated by subsection (a)) by 

striking ‘‘or (g)’’ and inserting ‘‘(g), or (i)’’. 

5. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JOHNSON

OF CONNECTICUT, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In title VII, subtitle E, add at the end the following new section: 

SEC. 775. UPDATE TESTING PROCEDURES. 

The Administrator of the Environmental Protection Agency shall 

update or revise test procedures, Subpart BlFuel Economy Regulations for 1978 and Later Model Year Automobiles-Test Procedures 600.209–85 and 600.209–95, of the Code of Federal Regulations, CFR Part 600 (1995) Fuel Economy Regulations for 1977 and 

Later Model Year Automobiles to take into consideration higher 

speed limits, faster acceleration rates, variations in temperature, 

use of air conditioning, shorter city test cycle lengths, current reference fuels, and the use of other fuel depleting features. 

6. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ROGERS OF

MICHIGAN, OR HIS DESIGNEE, AS AN AMENDMENT TO THE AMEND- MENT NUMBERED lll, TO BE OFFERED BY REPRESENTATIVE

JOHNSON OF CONNECTICUT, DEBATABLE FOR 10 MINUTES

In the matter proposed to be inserted by the amendment, strike 

‘‘test procedures’’ and all that follows through ‘‘Later Model Year 

Automobiles-Test Procedures’’ and insert ‘‘the adjustment factors in 

sections’’. 

7. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE BISHOP OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 30 MINUTES

In section 109(2), at the end of the quoted material insert the following new paragraph: 

‘‘(4) All housing constructed under the military housing privatization initiative of the Department of Defense shall, to the 

maximum extent practicable— 

‘‘(A) meet Federal building energy efficiency standards 

under this section; and 

‘‘(B) include Energy Star appliances. 

In title I, subtitle A, add at the end the following new section: 

46 

SEC. 112. MODEL BUILDING ENERGY CODE COMPLIANCE GRANT PROGRAM. 

(a) IN GENERAL.—The Secretary shall 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. 

(b) GUIDELINES.—Not later than 180 days after the date of enactment of this Act, the Secretary shall issue guidelines that standardize criteria by which a State that seeks to receive a grant under 

this section may— 

(1) verify compliance with applicable model building energy 

codes; and 

(2) demonstrate eligibility to receive a grant under this section. 

(c) LOCAL GOVERNMENT CODES.—In the case of a State in which 

building energy codes are established by local governments— 

(1) A local government may— 

(A) apply for a grant under this section; and 

(B) verify compliance, and demonstrate eligibility, for 

the grant under subsection (b); and 

(2) if the Secretary determines that the local government is 

eligible to receive a grant, the Secretary may provide a grant 

to the local government. 

(d) USE OF FUNDS.—Funds from a grant provided under this section may be used only to carry out activities relating to the implementation of building energy codes and beyond-code building practices. 

(e) AUTHORIZATION OF APPROPRIATIONS.— 

(1) IN GENERAL.—There is authorized to be appropriated to 

carry out this section $25,000,000 for each of fiscal years 2006 

through 2010. 

(2) SET ASIDE.—Of the amounts authorized to be appropriated under paragraph (1), the Secretary may use not more 

than $500,000 for each fiscal year— 

(A) to develop compliance guidelines; 

(B) to train State and local officials; and 

(C) to administer grants provided under this section. 

In section 131(a), amend the proposed section 324A(3) to read as 

follows: 

‘‘(3) preserve the integrity of the Energy Star label by— 

‘‘(A) regularly updating Energy Star criteria; and 

‘‘(B) ensuring, in general, that— 

‘‘(i) not more than 25 percent of available models in 

a product class receive the Energy Star designation; 

and 

‘‘(ii) Energy Star designated products and buildings 

are at least 10 percent more efficient than— 

‘‘(I) appliance standards in effect on the date of 

enactment of this section; and 

‘‘(II) the most recent model energy code; 

In section 133(a)(2), add at the end the following new paragraphs: 

‘‘(45)(A) The term ‘commercial prerinse spray valve’ means a 

handheld device designed and marketed for use with commerVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00046 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
47 

cial 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 term ‘commercial prerinse spray valve’ may include (as determined by the secretary by rule) 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 that would meet 

the criteria specified in subsection (o)(4). 

‘‘(C) The term ‘commercial prerinse spray valve’ may exclude (as determined by the secretary by rule) 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. 

‘‘(46) 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.’’. 

In section 133(b)(1), insert after the proposed paragraph (13) the 

following new paragraphs: 

‘‘(14) 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. 

‘‘(15) 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 Prerinse Spray Valves.’’’. 

In section 133(c), at the end of the quoted material insert the following new subsections: 

‘‘(ee) DEHUMIDIFIERS.—(1) Dehumidifiers manufactured on or 

after October 1, 2007, shall have an Energy Factor that meets or 

exceeds the following values: 

‘‘‘‘Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh) 

............................................................................................................ 1.00 

> 25 – ................................................................................................. 1.20 

> 35 – ................................................................................................. 1.30 

> 54 – < 75 ........................................................................................ 1.50 

............................................................................................................ 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 standards established under paragraph (1) 

should be amended. 

48 

‘‘(B) The final rule shall contain any amendment by the Secretary and shall provide that the amendment shall apply to 

products manufactured on or after October 1, 2012. 

‘‘(C) If the Secretary does not publish an amendment that 

takes effect by October 1, 2012, dehumidifiers manufactured on 

or after October 1, 2012, shall have an Energy Factor that 

meets or exceeds the following values: 

‘‘‘‘Product Capacity (pints/day): Minimum Energy Factor (Liters/kWh) 

............................................................................................................ 1.20 

> 25 – ................................................................................................. 1.30 

> 35 – ................................................................................................. 1.40 

> 45 – ................................................................................................. 1.50 

> 54 – < 75 ........................................................................................ 1.60 

............................................................................................................ 2.5. 

‘‘(ff) COMMERCIAL PRERINSE SPRAY VALVES.—Commercial 

prerinse spray valves manufactured on or after January 1, 2006, 

shall have a flow rate less than or equal to 1.6 gallons per minute. 

‘‘(gg) STANDARDS FOR CERTAIN FURNACES.—(1) Notwithstanding 

subsection (f) and except as provided in paragraphs (2) and (3), a 

furnace (including a furnace designed solely for installation in a 

mobile home) manufactured 3 or more years after the date of enactment of this subsection shall have an annual fuel utilization efficiency of— 

‘‘(A) for natural gas- and propane-fired equipment, not less 

than 80 percent; and 

‘‘(B) for oil-fired equipment not less than 83 percent. 

‘‘(2)(A) Notwithstanding subsection (f) and except as provided in 

paragraph (3)— 

‘‘(i) a boiler (other than a gas steam boiler) manufactured 3 

or more years after the date of enactment of this subsection 

shall have an annual fuel utilization efficiency of not less than 

84 percent; and 

‘‘(ii) a gas steam boiler manufactured 3 or more years after 

the date of enactment of this subsection shall have an annual 

fuel utilization efficiency of not less than 82 percent. 

‘‘(B)(i) Notwithstanding subsection (f), if, after the date of enactment of this subsection, the Governor of a cold climate State files 

with the Secretary a notice that the State has implemented a requirement for an annual fuel utilization efficiency of not less than 

90 percent for furnaces (other than boilers and furnaces designed 

solely for installation in a mobile home or boiler), the annual fuel 

utilization efficiency of a furnace sold in that State shall be not less 

than 90 percent. 

‘‘(ii) If a State described in clause (i) fails to implement or reasonably enforce (as determined by the Secretary) annual fuel utilization efficiency in accordance with that clause, the annual fuel use 

efficiency for furnaces (other than boilers and furnaces designed 

solely for installation in a mobile home or boiler) in that State shall 

be the fuel utilization efficiency established under paragraph (1). 

‘‘(3)(A) Not later than 5 years after the date on which a standard 

for a product under this subsection takes effect, the Secretary shall 

promulgate a final rule to determine whether that standard should 

be amended. 

‘‘(B) If the Secretary determines that a standard under subparagraph (A) should be amended— 

49 

‘‘(i) the final rule promulgated pursuant to subparagraph (A) 

shall contain the new standard; and 

‘‘(ii) the new standard shall apply to any product manufactured after the date that is 5 years after the date on which the 

final rule is promulgated.’’. 

In section 134(b), in the quoted material, insert at the end the 

following new paragraphs: 

‘‘(6) In the case of dehumidifiers covered under section 

325(ee), the Commission shall not require an Energy Guide 

label. 

‘‘(7)(A) Not later than July 1, 2006, the Commission shall 

prescribe by rule, pursuant to this section, labeling requirements for the electricity used by ceiling fans to circulate air in 

a room. 

‘‘(B) The requirements shall be based on the test procedure 

and labeling requirements contained in the Energy Star Program Requirements for Residential Ceiling Fans, version 2.0, 

issued by the Environmental Protection Agency, except that 

third party testing and other non-labeling requirements shall 

not be promulgated unless the Commission determines the requirements are necessary to achieve compliance. 

‘‘(C) The rule shall apply to products manufactured after the 

later of— 

‘‘(i) January 1, 2007; or 

‘‘(ii) the date that is 60 days after the final rule is prescribed.’’. 

In section 135, in the proposed subsection (h), insert ‘‘, upon 

adoption of a standard under this Act’’ after ‘‘fan light kits’’. 

In title I, subtitle, C, add at the end the following new section: 

SEC. 137. COMMERCIAL PACKAGE AIR CONDITIONING AND HEATING 

EQUIPMENT. 

(a) DEFINITIONS.—Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is amended— 

(1) in paragraph (1)— 

(A) by redesignating subparagraphs (D) through (G) as 

subparagraphs (E) through (H), respectively; and 

(B) by inserting after subparagraph (C) the following: 

‘‘(D) Very large commercial package air conditioning and 

heating equipment.’’; 

(2) in paragraph (2)(B), by striking ‘‘small and large’’; 

(3) by striking paragraphs (8) and (9) and inserting the following: 

‘‘(8)(A) The term ‘commercial package air conditioning and 

heating equipment’ means air-cooled, water-cooled, evaporatively-cooled, or water source (not including ground water 

source) electrically operated, unitary central air conditioners 

and central air conditioning heat pumps for commercial application. 

‘‘(B) The term ‘small commercial package air conditioning 

and heating equipment’ means commercial package air conditioning and heating equipment that is rated below 135,000 Btu 

per hour (cooling capacity). 

‘‘(C) The term ‘large commercial package air conditioning 

and heating equipment’ means commercial package air condiVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00049 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
50 

tioning and heating equipment that is rated at or above 

135,000 Btu per hour and 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 at or above 

240,000 Btu per hour and below 760,000 Btu per hour (cooling 

capacity).’’; 

(4) by redesignating paragraphs (10) through (18) as paragraphs (9) through (17), respectively; and 

(5) in paragraph (10) (as redesignated by subparagraph (D)), 

by inserting ‘‘, except for gas unit heaters and gas duct furnaces’’ after ‘‘furnaces’’. 

(b) STANDARDS.—Section 342(a) of the Energy Policy and Conservation Act (42 U.S.C. 6313(a)) is amended— 

(1) in the subsection heading, by striking ‘‘Small and Large’’ 

and inserting ‘‘Small, Large, and Very Large’’; 

(2) in paragraph (1), by inserting ‘‘but before January 1, 

2010,’’ after ‘‘January 1, 1994,’’; 

(3) in paragraph (2), by inserting ‘‘but before January 1, 

2010,’’ after ‘‘January 1, 1995,’’; 

(4) in paragraph (4), by inserting ‘‘, except for a gas unit 

heater or gas duct furnace,’’ after ‘‘boiler’’; 

(5) in paragraph (6)— 

(A) in subparagraph (A)— 

(i) by inserting ‘‘(i)’’ after ‘‘(A)’’; 

(ii) by striking ‘‘the date of enactment of the Energy 

Policy Act of 1992’’ and inserting ‘‘January 1, 2010’’; 

(iii) by inserting after ‘‘large commercial package air 

conditioning and heating equipment’’ the following: 

‘‘and very large commercial package air conditioning 

and heating equipment, or if ASHRAE/IES Standard 

90.1, as in effect on October 24, 1992, is amended with 

respect to any’’; and 

(iv) by adding at the end the following: 

‘‘(ii) If ASHRAE/IES Standard 90.1 is not amended 

with respect to small commercial package air conditioning and heating equipment, large commercial 

package air conditioning and heating equipment, and 

very large commercial package air conditioning and 

heating equipment during the 5-year period beginning 

on the effective date of a standard, the Secretary may 

initiate a rulemaking to determine whether a more 

stringent standard would result in significant additional conservation of energy and is technologically 

feasible and economically justified. 

‘‘(iii) This subparagraph does not apply to gas-fired 

warm-air furnaces, gas-fired package boilers, storage 

water heaters, gas unit heaters, or gas duct furnaces 

manufactured 5 or more years after the date of enactment of the National Energy Efficiency Policy Act of 

2005.’’; and 

(B) in subparagraph (C)(ii), by inserting ‘‘and very large 

commercial package air conditioning and heating equipVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00050 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
51 

ment’’ after ‘‘large commercial package air conditioning 

and heating equipment’’; and 

(6) by adding at the end the following: 

‘‘(7) Each 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) Each 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). 

52 

‘‘(9) Each 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). 

‘‘(10) Notwithstanding paragraph (4) and except as provided 

in paragraph (14), the minimum thermal efficiency at the maximum rated capacity of a gas-fired warm-air furnace with the 

capacity of 225,000 Btu per hour or more manufactured 4 or 

more years after the date of enactment of this paragraph shall 

be 79.5 percent. 

‘‘(11) Notwithstanding paragraph (4) and except as provided 

in paragraph (14), the minimum combustion efficiency at the 

maximum rated capacity of a gas-fired package boiler with the 

capacity of 300,000 Btu per hour or more manufactured 4 or 

more years after the date of enactment of this paragraph shall 

be 84 percent. 

‘‘(12) Notwithstanding paragraph (5) (excluding paragraph 

(5)(g)), and except as provided in paragraph (14)— 

‘‘(A) the maximum standby loss (expressed as a percent 

per hour) of a gas-fired storage water heater shall be 1.30 

(expressed as a measurement of storage volume in gallons); and 

‘‘(B) the minimal thermal efficiency of a gas-fired storage 

water heater shall be 82 percent. 

‘‘(13) Except as provided in paragraph (14), each gas unit 

heater and gas duct furnace manufactured 3 or more years 

after the date of enactment of this paragraph shall be equipped 

with— 

‘‘(A) an intermittent ignition device; and 

‘‘(B)(i) power venting; or 

‘‘(ii) an automatic flue damper. 

‘‘(14)(A) Not later than 5 years after the date on which a 

standard for a product under paragraph (10), (11), (12), or (13) 

53 

takes effect, the Secretary shall promulgate a final rule to determine whether the standard for that product should be 

amended. 

‘‘(B) If the Secretary determines that a standard should 

be amended under subparagraph (A)— 

‘‘(i) the final rule promulgated pursuant to subparagraph (A) shall contain the new standard; and 

‘‘(ii) the new standard shall apply to any product 

manufactured 4 or more years after the date on which 

the final rule is promulgated.’’. 

(c) TEST PROCEDURES.—Section 343 of the Energy Policy and 

Conservation Act (42 U.S.C. 6314) is amended in subsections (a)(4) 

and (d)(1), by inserting ‘‘very large commercial package air conditioning and heating equipment,’’ after ‘‘large commercial package 

air conditioning and heating equipment,’’ each place it appears. 

(d) LABELING.—Section 344(e) of the Energy Policy and Conservation Act (42 U.S.C. 6315(e)) is amended in the first and second sentences, by inserting ‘‘very large commercial package air conditioning and heating equipment,’’ after ‘‘large commercial package 

air conditioning and heating equipment,’’ each place it appears. 

(e) ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION.—Section 345 of the Energy Policy and Conservation Act (42 

U.S.C. 6316) is amended by adding at the end the following: 

‘‘(d)(1) Except as provided in paragraphs (2) and (3), section 327 

shall apply with respect to the equipment specified in section 

340(1)(D) 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 prescribed or enacted prior to 

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. 

‘‘(3) If the California Energy Commission adopts, not later than 

March 31, 2005, a regulation concerning the energy efficiency or 

energy effective after, the standards established under section 

342(a)(9) take effect on January 1, 2010.’’. 

In section 304, insert at the end the following: ‘‘In determining 

whether to defer such acquisition, the Secretary shall use marketbased practices when deciding to acquire petroleum for the Strategic Petroleum Reserve, as used prior to 2002; carry out and make 

public analyses of costs and savings when making or deferring such 

acquisitions; take into account and report to Congress the impact 

the acquisition will have on the domestic and foreign supply of petroleum and the resulting price increases or decreases; and consult 

with the Secretary of Homeland Security on the security consequences of such acquisition or deferral.’’. 

In title III, subtitle A, add at the end the following new section: 

SEC. 305. SENSE OF THE HOUSE OF REPRESENTATIVES. 

It is the sense of the House of Representatives that, to address 

the crude oil price problem in the short-term, the President should 

communicate immediately to the members of the Organization of 

Petroleum Exporting Countries (OPEC) cartel and non-OPEC countries that participate in the cartel of crude oil producing countries 

that— 

54 

(1) the United States seeks to maintain strong relations with 

crude oil producers around the world while promoting international efforts to remove barriers to energy trade and investment and increased access for United States energy firms 

around the world; 

(2) the United States believes that restricting supply in a 

market that is in demand for additional crude oil does serious 

damage to the efforts that OPEC members have made to demonstrate that they represent a reliable source of crude oil supply; 

(3) the United States believes that stable crude oil prices and 

supplies are essential for strong economic growth throughout 

the world; 

(4) the United States seeks an immediate increase in the 

OPEC crude oil production quotas; and 

(5) the United States will temporarily suspend further purchases of crude oil for the Strategic Petroleum Reserve, thereby freeing up additional supply for the marketplace. 

Amend section 355 to read as follows (and amend the table of 

contents accordingly): 

SEC. 355. GREAT LAKES OIL AND GAS DRILLING BAN. 

No Federal or State permit or lease shall be issued for new oil 

and gas slant, directional, or offshore drilling in or under one or 

more of the Great Lakes. 

Title XII is amended by striking sections 1201 through 1235 and 

sections 1237 through 1298, by striking the title heading, by inserting the following before title XIII, by redesignating section 1236 

(relating to native load service obligation) as section 1233 of the following and inserting such redesignated section 1233 after section 

1232 of the following, and by making the necessary conforming 

changes in the table of contents: 

TITLE XII—ELECTRICITY 

SEC. 1201. SHORT TITLE. 

This title may be cited as the ‘‘Electric Reliability Act of 2005’’. 

Subtitle A—Reliability Standards 

SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 

(a) IN GENERAL.—Part II of the Federal Power Act (16 U.S.C 824 

et seq.) is amended by adding at the end the following: 

‘‘SEC. 215. ELECTRIC RELIABILITY. 

‘‘(a) DEFINITIONS.—For purposes of this section: 

‘‘(1) The term ‘bulk-power system’ means— 

‘‘(A) facilities and control systems necessary for operating an interconnected electric energy transmission network (or any portion thereof); and 

‘‘(B) electric energy from generation facilities needed to 

maintain transmission system reliability. 

The term does not include facilities used in the local distribution of electric energy. 

55 

‘‘(2) The terms ‘Electric Reliability Organization’ and ‘ERO’ 

mean the organization certified by the Commission under subsection (c) the purpose of which is to establish and enforce reliability standards for the bulk-power system, subject to Commission review. 

‘‘(3) The term ‘reliability standard’ means a requirement, approved by the Commission under this section, to provide for reliable operation of the bulk-power system. The term includes 

requirements for the operation of existing bulk-power system 

facilities and the design of planned additions or modifications 

to such facilities to the extent necessary to provide for reliable 

operation of the bulk-power system, but the term does not include any requirement to enlarge such facilities or to construct 

new transmission capacity or generation capacity. 

‘‘(4) The term ‘reliable operation’ means operating the elements of the bulk-power system within equipment and electric 

system thermal, voltage, and stability limits so that instability, 

uncontrolled separation, or cascading failures of such system 

will not occur as a result of a sudden disturbance or unanticipated failure of system elements. 

‘‘(5) The term ‘Interconnection’ means a geographic area in 

which the operation of bulk-power system components is synchronized such that the failure of 1 or more of such components may adversely affect the ability of the operators of other 

components within the system to maintain reliable operation of 

the facilities within their control. 

‘‘(6) The term ‘transmission organization’ means a Regional 

Transmission Organization, Independent System Operator, 

independent transmission provider, or other transmission organization finally approved by the Commission for the operation 

of transmission facilities. 

‘‘(7) The term ‘regional entity’ means an entity having enforcement authority pursuant to subsection (e)(4). 

‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The Commission shall 

have jurisdiction, within the United States, over the ERO certified 

by the Commission under subsection (c), any regional entities, and 

all users, owners and operators of the bulk-power system, including 

but not limited to the entities described in section 201(f), for purposes of approving reliability standards established under this section and enforcing compliance with this section. All users, owners 

and operators of the bulk-power system shall comply with reliability standards that take effect under this section. 

‘‘(2) The Commission shall issue a final rule to implement the requirements of this section not later than 180 days after the date 

of enactment of this section. 

‘‘(c) CERTIFICATION.—Following the issuance of a Commission 

rule under subsection (b)(2), any person may submit an application 

to the Commission for certification as the Electric Reliability Organization. The Commission may certify 1 such ERO if the Commission determines that such ERO— 

‘‘(1) has the ability to develop and enforce, subject to subsection (e)(2), reliability standards that provide for an adequate 

level of reliability of the bulk-power system; and 

‘‘(2) has established rules that— 

56 

‘‘(A) assure its independence of the users and owners 

and operators of the bulk-power system, while assuring 

fair stakeholder representation in the selection of its directors and balanced decisionmaking in any ERO committee 

or subordinate organizational structure; 

‘‘(B) allocate equitably reasonable dues, fees, and other 

charges among end users for all activities under this section; 

‘‘(C) provide fair and impartial procedures for enforcement of reliability standards through the imposition of 

penalties in accordance with subsection (e) (including limitations on activities, functions, or operations, or other appropriate sanctions); 

‘‘(D) provide for reasonable notice and opportunity for 

public comment, due process, openness, and balance of interests in developing reliability standards and otherwise 

exercising its duties; and 

‘‘(E) provide for taking, after certification, appropriate 

steps to gain recognition in Canada and Mexico. 

The total amount of all dues, fees, and other charges collected 

by the ERO in each of the fiscal years 2006 through 2015 and 

allocated under subparagraph (B) shall not exceed $50,000,000. 

‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reliability Organization shall file each reliability standard or modification to a reliability standard that it proposes to be made effective under this 

section with the Commission. 

‘‘(2) The Commission may approve, by rule or order, a proposed 

reliability standard or modification to a reliability standard if it determines that the standard is just, reasonable, not unduly discriminatory or preferential, and in the public interest. The Commission 

shall give due weight to the technical expertise of the Electric Reliability Organization with respect to the content of a proposed 

standard or modification to a reliability standard and to the technical expertise of a regional entity organized on an Interconnectionwide basis with respect to a reliability standard to be applicable 

within that Interconnection, but shall not defer with respect to the 

effect of a standard on competition. A proposed standard or modification shall take effect upon approval by the Commission. 

‘‘(3) The Electric Reliability Organization shall rebuttably presume that a proposal from a regional entity organized on an Interconnection-wide basis for a reliability standard or modification to 

a reliability standard to be applicable on an Interconnection-wide 

basis is just, reasonable, and not unduly discriminatory or preferential, and in the public interest. 

‘‘(4) The Commission shall remand to the Electric Reliability Organization for further consideration a proposed reliability standard 

or a modification to a reliability standard that the Commission disapproves in whole or in part. 

‘‘(5) The Commission, upon its own motion or upon complaint, 

may order the Electric Reliability Organization to submit to the 

Commission a proposed reliability standard or a modification to a 

reliability standard that addresses a specific matter if the Commission considers such a new or modified reliability standard appropriate to carry out this section. 

57 

‘‘(6) The final rule adopted under subsection (b)(2) shall include 

fair processes for the identification and timely resolution of any 

conflict between a reliability standard and any function, rule, 

order, tariff, rate schedule, or agreement accepted, approved, or ordered by the Commission applicable to a transmission organization. 

Such transmission organization shall continue to comply with such 

function, rule, order, tariff, rate schedule or agreement accepted 

approved, or ordered by the Commission until— 

‘‘(A) the Commission finds a conflict exists between a reliability standard and any such provision; 

‘‘(B) the Commission orders a change to such provision pursuant to section 206 of this part; and 

‘‘(C) the ordered change becomes effective under this part. 

If the Commission determines that a reliability standard needs to 

be changed as a result of such a conflict, it shall order the ERO 

to develop and file with the Commission a modified reliability 

standard under paragraph (4) or (5) of this subsection. 

‘‘(e) ENFORCEMENT.—(1) The ERO may impose, subject to paragraph (2), a penalty on a user or owner or operator of the bulkpower system for a violation of a reliability standard approved by 

the Commission under subsection (d) if the ERO, after notice and 

an opportunity for a hearing— 

‘‘(A) finds that the user or owner or operator has violated a 

reliability standard approved by the Commission under subsection (d); and 

‘‘(B) files notice and the record of the proceeding with the 

Commission. 

‘‘(2) A penalty imposed under paragraph (1) may take effect not 

earlier than the 31st day after the ERO files with the Commission 

notice of the penalty and the record of proceedings. Such penalty 

shall be subject to review by the Commission, on its own motion 

or upon application by the user, owner or operator that is the subject of the penalty filed within 30 days after the date such notice 

is filed with the Commission. Application to the Commission for review, or the initiation of review by the Commission on its own motion, shall not operate as a stay of such penalty unless the Commission otherwise orders upon its own motion or upon application 

by the user, owner or operator that is the subject of such penalty. 

In any proceeding to review a penalty imposed under paragraph 

(1), the Commission, after notice and opportunity for hearing 

(which hearing may consist solely of the record before the ERO and 

opportunity for the presentation of supporting reasons to affirm, 

modify, or set aside the penalty), shall by order affirm, set aside, 

reinstate, or modify the penalty, and, if appropriate, remand to the 

ERO for further proceedings. The Commission shall implement expedited procedures for such hearings. 

‘‘(3) On its own motion or upon complaint, the Commission may 

order compliance with a reliability standard and may impose a 

penalty against a user or owner or operator of the bulk-power system if the Commission finds, after notice and opportunity for a 

hearing, that the user or owner or operator of the bulk-power system has engaged or is about to engage in any acts or practices that 

constitute or will constitute a violation of a reliability standard. 

‘‘(4) The Commission shall issue regulations authorizing the ERO 

to enter into an agreement to delegate authority to a regional entiVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00057 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
58 

ty for the purpose of proposing reliability standards to the ERO 

and enforcing reliability standards under paragraph (1) if— 

‘‘(A) the regional entity is governed by— 

‘‘(i) an independent board; 

‘‘(ii) a balanced stakeholder board; or 

‘‘(iii) a combination independent and balanced stakeholder board. 

‘‘(B) the regional entity otherwise satisfies the provisions of 

subsection (c)(1) and (2); and 

‘‘(C) the agreement promotes effective and efficient administration of bulk-power system reliability. 

The Commission may modify such delegation. The ERO and the 

Commission shall rebuttably presume that a proposal for delegation to a regional entity organized on an Interconnection-wide basis 

promotes effective and efficient administration of bulk-power system reliability and should be approved. Such regulation may provide that the Commission may assign the ERO’s authority to enforce reliability standards under paragraph (1) directly to a regional entity consistent with the requirements of this paragraph. 

‘‘(5) The Commission may take such action as is necessary or appropriate against the ERO or a regional entity to ensure compliance with a reliability standard or any Commission order affecting 

the ERO or a regional entity. 

‘‘(6) Any penalty imposed under this section shall bear a reasonable relation to the seriousness of the violation and shall take into 

consideration the efforts of such user, owner, or operator to remedy 

the violation in a timely manner. 

‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZATION RULES.— The Electric Reliability Organization shall file with the Commission for approval any proposed rule or proposed rule change, accompanied by an explanation of its basis and purpose. The Commission, upon its own motion or complaint, may propose a change 

to the rules of the ERO. A proposed rule or proposed rule change 

shall take effect upon a finding by the Commission, after notice 

and opportunity for comment, that the change is just, reasonable, 

not unduly discriminatory or preferential, is in the public interest, 

and satisfies the requirements of subsection (c). 

‘‘(g) RELIABILITY REPORTS.—The ERO shall conduct periodic assessments of the reliability and adequacy of the bulk-power system 

in North America. 

‘‘(h) COORDINATION WITH CANADA AND MEXICO.—The President 

is urged to negotiate international agreements with the governments of Canada and Mexico to provide for effective compliance 

with reliability standards and the effectiveness of the ERO in the 

United States and Canada or Mexico. 

‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have authority to 

develop and enforce compliance with reliability standards for only 

the bulk-power system. 

‘‘(2) This section does not authorize the ERO or the Commission 

to order the construction of additional generation or transmission 

capacity or to set and enforce compliance with standards for adequacy or safety of electric facilities or services. 

‘‘(3) Nothing in this section shall be construed to preempt any authority of any State to take action to ensure the safety, adequacy, 

and reliability of electric service within that State, as long as such 

59 

action is not inconsistent with any reliability standard, except that 

the State of New York may establish rules that result in greater 

reliability within that State, as long as such action does not result 

in lesser reliability outside the State than that provided by the reliability standards.. 

‘‘(4) Within 90 days of the application of the Electric Reliability 

Organization or other affected party, and after notice and opportunity for comment, the Commission shall issue a final order determining whether a State action is inconsistent with a reliability 

standard, taking into consideration any recommendation of the 

ERO. 

‘‘(5) The Commission, after consultation with the ERO and the 

State taking action, may stay the effectiveness of any State action, 

pending the Commission’s issuance of a final order. 

‘‘(j) REGIONAL ADVISORY BODIES.—The Commission shall establish a regional advisory body on the petition of at least 2⁄3 of the 

States within a region that have more than 1⁄2 of their electric load 

served within the region. A regional advisory body shall be composed of 1 member from each participating State in the region, appointed by the Governor of each State, and may include representatives of agencies, States, and provinces outside the United States. 

A regional advisory body may provide advice to the Electric Reliability Organization, a regional entity, or the Commission regarding the governance of an existing or proposed regional entity within 

the same region, whether a standard proposed to apply within the 

region is just, reasonable, not unduly discriminatory or preferential, and in the public interest, whether fees proposed to be assessed within the region are just, reasonable, not unduly discriminatory or preferential, and in the public interest and any other responsibilities requested by the Commission. The Commission may 

give deference to the advice of any such regional advisory body if 

that body is organized on an Interconnection-wide basis. 

‘‘(k) ALASKA AND HAWAII.—The provisions of this section do not 

apply to Alaska or Hawaii.’’. 

(b) STATUS OF ERO.—The Electric Reliability Organization certified by the Federal Energy Regulatory Commission under section 

215(c) of the Federal Power Act and any regional entity delegated 

enforcement authority pursuant to section 215(e)(4) of that Act are 

not departments, agencies, or instrumentalities of the United 

States Government. 

(c) LIMITATION ON ANNUAL APPROPRIATIONS.—There is authorized to be appropriated not mroe than $50,000,000 per year for fiscal years 2006 through 2015 for all activities under the amendment 

made by subsection (a). 

Subtitle B—Transmission Operation 

Improvements 

SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 

amended by inserting after section 211 the following new section: 

60 

‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES. 

‘‘(a) TRANSMISSION SERVICES.—Subject to section 212(h), the 

Commission may, by rule or order, require an unregulated transmitting utility to provide transmission services— 

‘‘(1) at rates that are comparable to those that the unregulated transmitting utility charges itself; and 

‘‘(2) on terms and conditions (not relating to rates) that are 

comparable to those under which such unregulated transmitting utility provides transmission services to itself and that are 

not unduly discriminatory or preferential. 

‘‘(b) EXEMPTION.—The Commission shall exempt from any rule or 

order under this section any unregulated transmitting utility 

that— 

‘‘(1) sells no more than 4,000,000 megawatt hours of electricity per year; or 

‘‘(2) does not own or operate any transmission facilities that 

are necessary for operating an interconnected transmission 

system (or any portion thereof); or 

‘‘(3) meets other criteria the Commission determines to be in 

the public interest. 

‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The requirements of subsection (a) shall not apply to facilities used in local distribution. 

‘‘(d) EXEMPTION TERMINATION.—Whenever the Commission, after 

an evidentiary hearing held upon 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 (b) unreasonably impairs 

the continued reliability of an interconnected transmission system, 

it shall revoke the exemption granted to that transmitting utility. 

‘‘(e) APPLICATION TO UNREGULATED TRANSMITTING UTILITIES.— 

The rate changing procedures applicable to public utilities under 

subsections (c) and (d) of section 205 are applicable to unregulated 

transmitting utilities for purposes of this section. 

‘‘(f) REMAND.—In exercising its authority under paragraph (1) of 

subsection (a), the Commission may remand transmission rates to 

an unregulated transmitting utility for review and revision where 

necessary to meet the requirements of subsection (a). 

‘‘(g) OTHER REQUESTS.—The provision of transmission services 

under subsection (a) does not preclude a request for transmission 

services under section 211. 

‘‘(h) 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 (26 U.S.C. 141). 

‘‘(i) 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 an RTO or any other Commissionapproved independent transmission organization designated to provide nondiscriminatory transmission access. 

‘‘(j) DEFINITION.—For purposes of 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 

61 

‘‘(2) is an entity described in section 201(f).’’. 

SEC. 1232. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION ORGANIZATIONS. 

(a) DEFINITIONS.—For purposes of this section— 

(1) APPROPRIATE FEDERAL REGULATORY AUTHORITY.—The 

term ‘‘appropriate Federal regulatory authority’’ means— 

(A) with respect to a Federal power marketing agency 

(as defined in the Federal Power Act), the Secretary of Energy, except that the Secretary may designate the Administrator of a Federal power marketing agency to act as the 

appropriate Federal regulatory authority with respect to 

the transmission system of that Federal power marketing 

agency; and 

(B) with respect to the Tennessee Valley Authority, the 

Board of Directors of the Tennessee Valley Authority. 

(2) FEDERAL UTILITY.—The term ‘‘Federal utility’’ means a 

Federal power marketing agency or the Tennessee Valley Authority. 

(3) TRANSMISSION SYSTEM.—The term ‘‘transmission system’’ 

means electric transmission facilities owned, leased, or contracted for by the United States and operated by a Federal 

utility. 

(b) TRANSFER.—The appropriate Federal regulatory authority is 

authorized to enter into a contract, agreement or other arrangement transferring control and use of all or part of the Federal utility’s transmission system to an RTO or ISO (as defined in the Federal Power Act), approved by the Federal Energy Regulatory Commission. Such contract, agreement or arrangement shall include— 

(1) performance standards for operation and use of the transmission system that the head of the Federal utility determines 

necessary or appropriate, including standards that assure recovery of all the Federal utility’s costs and expenses related to 

the transmission facilities that are the subject of the contract, 

agreement or other arrangement; consistency with existing 

contracts and third-party financing arrangements; and consistency with said Federal utility’s statutory authorities, obligations, and limitations; 

(2) provisions for monitoring and oversight by the Federal 

utility of the RTO’s or ISO’s fulfillment of the terms and conditions of the contract, agreement or other arrangement, including a provision for the resolution of disputes through arbitration or other means with the regional transmission organization or with other participants, notwithstanding the obligations 

and limitations of any other law regarding arbitration; and 

(3) a provision that allows the Federal utility to withdraw 

from the RTO or ISO and terminate the contract, agreement 

or other arrangement in accordance with its terms. 

Neither this section, actions taken pursuant to it, nor any other 

transaction of a Federal utility using an RTO or ISO shall confer 

upon the Federal Energy Regulatory Commission jurisdiction or 

authority over the Federal utility’s electric generation assets, electric capacity or energy that the Federal utility is authorized by law 

to market, or the Federal utility’s power sales activities. 

(c) EXISTING STATUTORY AND OTHER OBLIGATIONS.— 

62 

(1) SYSTEM OPERATION REQUIREMENTS.—No statutory provision requiring or authorizing a Federal utility to transmit electric power or to construct, operate or maintain its transmission 

system shall be construed to prohibit a transfer of control and 

use of its transmission system pursuant to, and subject to all 

requirements of subsection (b). 

(2) OTHER OBLIGATIONS.—This subsection shall not be construed to— 

(A) suspend, or exempt any Federal utility from, any 

provision of existing Federal law, including but not limited 

to any requirement or direction relating to the use of the 

Federal utility’s transmission system, environmental protection, fish and wildlife protection, flood control, navigation, water delivery, or recreation; or 

(B) authorize abrogation of any contract or treaty obligation. 

(3) REPEAL.—Section 311 of title III of Appendix B of the Act 

of October 27, 2000 (P.L. 106–377, section 1(a)(2); 114 Stat. 

1441, 1441A–80; 16 U.S.C. 824n) is repealed. 

Subtitle C—Amendments to PURPA 

SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 

(a) ADOPTION OF STANDARDS.—Section 111(d) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended 

by adding at the end the following: 

‘‘(11) NET METERING.—Each electric utility shall make available upon request net metering service to any electric consumer that the electric utility serves. For purposes of this 

paragraph, the term ‘net metering service’ means service to an 

electric consumer under which electric energy generated by 

that electric consumer from an eligible on-site generating facility and delivered to the local distribution facilities may be used 

to offset electric energy provided by the electric utility to the 

electric consumer during the applicable billing period. 

‘‘(12) FUEL SOURCES.—Each electric utility shall develop a 

plan to minimize dependence on 1 fuel source and to ensure 

that the electric energy it sells to consumers is generated using 

a diverse range of fuels and technologies, including renewable 

technologies. 

‘‘(13) FOSSIL FUEL GENERATION EFFICIENCY.—Each electric 

utility shall develop and implement a 10-year plan to increase 

the efficiency of its fossil fuel generation.’’. 

(b) COMPLIANCE.— 

(1) TIME LIMITATIONS.—Section 112(b) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended 

by adding at the end the following: 

‘‘(3)(A) Not later than 2 years after the enactment of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority) and each nonregulated electric utility shall commence the consideration referred 

to in section 111, or set a hearing date for such consideration, with 

respect to each standard established by paragraphs (11) through 

(13) of section 111(d). 

63 

‘‘(B) Not later than 3 years after the date of the enactment of this 

paragraph, each State regulatory authority (with respect to each 

electric utility for which it has ratemaking authority), and each 

nonregulated electric utility, shall complete the consideration, and 

shall make the determination, referred to in section 111 with respect to each standard established by paragraphs (11) through (13) 

of section 111(d).’’. 

(2) FAILURE TO COMPLY.—Section 112(c) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended 

by adding at the end the following: 

‘‘In the case of each standard established by paragraphs (11) 

through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be 

a reference to the date of enactment of such paragraphs (11) 

through (13).’’. 

(3) PRIOR STATE ACTIONS.— 

(A) IN GENERAL.—Section 112 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622) is amended by 

adding at the end the following: 

‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and (c) of this section shall not apply to the standards established by paragraphs 

(11) through (13) of section 111(d) in the case of any electric utility 

in a State if, before the enactment of this subsection— 

‘‘(1) the State has implemented for such utility the standard 

concerned (or a comparable standard); 

‘‘(2) the State regulatory authority for such State or relevant 

nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility; or 

‘‘(3) the State legislature has voted on the implementation of 

such standard (or a comparable standard) for such utility.’’. 

(B) CROSS REFERENCE.—Section 124 of such Act (16 

U.S.C. 2634) is amended by adding the following at the 

end thereof: ‘‘In the case of each standard established by 

paragraphs (11) through (13) of section 111(d), the reference contained in this subsection to the date of enactment of this Act shall be deemed to be a reference to the 

date of enactment of such paragraphs (11) through (13).’’. 

SEC. 1252. SMART METERING. 

(a) IN GENERAL.—Section 111(d) of the Public Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the end the following: 

‘‘(14) TIME-BASED METERING AND COMMUNICATIONS.— 

‘‘(A) Not later than 18 months after the date of enactment of this paragraph, each electric utility shall offer 

each of its customer classes, and provide individual customers upon customer request, a time-based rate schedule 

under which the rate charged by the electric utility varies 

during different time periods and reflects the variance, if 

any, in the utility’s costs of generating and purchasing 

electricity at the wholesale level. The time-based rate 

schedule shall enable the electric consumer to manage energy use and cost through advanced metering and communications technology. 

64 

‘‘(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; and 

‘‘(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. 

‘‘(C) Each electric utility subject to subparagraph (A) 

shall provide each customer requesting a time-based rate 

with a time-based meter capable of enabling the utility 

and customer to offer and receive such rate, respectively. 

‘‘(D) For purposes of implementing this paragraph, any 

reference contained in this section to the date of enactment 

of the Public Utility Regulatory Policies Act of 1978 shall 

be deemed to be a reference to the date of enactment of 

this paragraph. 

‘‘(E) In a State that permits third-party marketers to sell 

electric energy to retail electric consumers, such consumers 

shall be entitled to receive the same time-based metering 

and communications device and service as a retail electric 

consumer of the electric utility. 

‘‘(F) Notwithstanding subsections (b) and (c) of section 

112, each State regulatory authority shall, not later than 

18 months after the date of enactment of this paragraph 

conduct an investigation in accordance with section 115(i) 

and issue a decision whether it is appropriate to implement the standards set out in subparagraphs (A) and (C).’’. 

(b) STATE INVESTIGATION OF DEMAND RESPONSE AND TIME-BASED

METERING.—Section 115 of the Public Utilities Regulatory Policies 

Act of 1978 (16 U.S.C. 2625) is amended as follows: 

(1) By inserting in subsection (b) after the phrase ‘‘the standard for time-of-day rates established by section 111(d)(3)’’ the 

following: ‘‘and the standard for time-based metering and communications established by section 111(d)(14)’’. 

(2) By inserting in subsection (b) after the phrase ‘‘are likely 

to exceed the metering’’ the following: ‘‘and communications’’. 

65 

(3) By adding the at the end the following: 

‘‘(i) TIME-BASED METERING AND COMMUNICATIONS.—In making a 

determination with respect to the standard established by section 

111(d)(14), the investigation requirement of section 111(d)(14)(F) 

shall be as follows: Each State regulatory authority shall conduct 

an investigation and issue a decision whether or not it is appropriate for electric utilities to provide and install time-based meters 

and communications devices for each of their customers which enable such customers to participate in time-based pricing rate schedules and other demand response programs.’’. 

(c) FEDERAL ASSISTANCE ON DEMAND RESPONSE.—Section 132(a) 

of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

2642(a)) is amended by striking ‘‘and’’ at the end of paragraph (3), 

striking the period at the end of paragraph (4) and inserting ‘‘; 

and’’, and by adding the following at the end thereof: 

‘‘(5) technologies, techniques, and rate-making methods related to advanced metering and communications and the use 

of these technologies, techniques and methods in demand response programs.’’. 

(d) FEDERAL GUIDANCE.—Section 132 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) is amended by adding 

the following at the end thereof: 

‘‘(d) DEMAND RESPONSE.—The Secretary shall be responsible 

for— 

‘‘(1) educating consumers on the availability, advantages, 

and benefits of advanced metering and communications technologies, including the funding of demonstration or pilot 

projects; 

‘‘(2) working with States, utilities, other energy providers 

and advanced metering and communications experts to identify 

and address barriers to the adoption of demand response programs; and 

‘‘(3) not later than 180 days after the date of enactment of 

the Energy Policy Act of 2005, providing Congress with a report that identifies and quantifies the national benefits of demand response and makes a recommendation on achieving specific levels of such benefits by January 1, 2007.’’. 

(e) DEMAND RESPONSE AND REGIONAL COORDINATION.— (1) IN GENERAL.—It is the policy of the United States to encourage States to coordinate, on a regional basis, State energy 

policies to provide reliable and affordable demand response 

services to the public. 

(2) TECHNICAL ASSISTANCE.—The Secretary of Energy shall 

provide technical assistance to States and regional organizations formed by 2 or more States to assist them in— 

(A) identifying the areas with the greatest demand response potential; 

(B) identifying and resolving problems in transmission 

and distribution networks, including through the use of demand response; 

(C) developing plans and programs to use demand response to respond to peak demand or emergency needs; 

and 

(D) identifying specific measures consumers can take to 

participate in these demand response programs. 

66 

(3) REPORT.—Not later than 1 year after the date of enactment of the Energy Policy Act of 2005, the Commission shall 

prepare and publish an annual report, by appropriate region, 

that assesses demand response resources, including those 

available from all consumer classes, and which identifies and 

reviews— 

(A) saturation and penetration rate of advanced meters 

and communications technologies, devices and systems; 

(B) existing demand response programs and time-based 

rate programs; 

(C) the annual resource contribution of demand resources; 

(D) the potential for demand response as a quantifiable, 

reliable resource for regional planning purposes; and 

(E) steps taken to ensure that, in regional transmission 

planning and operations, demand resources are provided 

equitable treatment as a quantifiable, reliable resource relative to the resource obligations of any load-serving entity, 

transmission provider, or transmitting party. 

(f) FEDERAL ENCOURAGEMENT OF DEMAND RESPONSE DEVICES.— 

It is the policy of the United States that time-based pricing and 

other forms of demand response, whereby electricity customers are 

provided with electricity price signals and the ability to benefit by 

responding to them, shall be encouraged, and the deployment of 

such technology and devices that enable electricity customers to 

participate in such pricing and demand response systems shall be 

facilitated. It is further the policy of the United States that the 

benefits of such demand response that accrue to those not deploying such technology and devices, but who are part of the same regional electricity entity, shall be recognized. 

(g) TIME LIMITATIONS.—Section 112(b) of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) is amended by adding at the end the following: 

‘‘(4)(A) Not later than 1 year after the enactment of this 

paragraph, each State regulatory authority (with respect to 

each electric utility for which it has ratemaking authority) and 

each nonregulated electric utility shall commence the consideration referred to in section 111, or set a hearing date for such 

consideration, with respect to the standard established by 

paragraph (14) of section 111(d). 

‘‘(B) Not later than 2 years after the date of the enactment 

of this paragraph, each State regulatory authority (with respect to each electric utility for which it has ratemaking authority), and each nonregulated electric utility, shall complete 

the consideration, and shall make the determination, referred 

to in section 111 with respect to the standard established by 

paragraph (14) of section 111(d).’’. 

(h) FAILURE TO COMPLY.—Section 112(c) of the Public Utility 

Regulatory Policies Act of 1978 (16 U.S.C. 2622(c)) is amended by 

adding at the end the following: 

‘‘In the case of the standard established by paragraph (14) of section 111(d), the reference contained in this subsection to the date 

of enactment of this Act shall be deemed to be a reference to the 

date of enactment of such paragraph (14).’’. 

67 

(i) PRIOR STATE ACTIONS REGARDING SMART METERING STANDARDS.— 

(1) IN GENERAL.—Section 112 of the Public Utility Regulatory 

Policies Act of 1978 (16 U.S.C. 2622) is amended by adding at 

the end the following: 

‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and (c) of this section 

shall not apply to the standard established by paragraph (14) of 

section 111(d) in the case of any electric utility in a State if, before 

the enactment of this subsection— 

‘‘(1) the State has implemented for such utility the standard 

concerned (or a comparable standard); 

‘‘(2) the State regulatory authority for such State or relevant 

nonregulated electric utility has conducted a proceeding to consider implementation of the standard concerned (or a comparable standard) for such utility within the previous 3 years; 

or 

‘‘(3) the State legislature has voted on the implementation of 

such standard (or a comparable standard) for such utility within the previous 3 years.’’. 

(2) CROSS REFERENCE.—Section 124 of such Act (16 U.S.C. 

2634) is amended by adding the following at the end thereof: 

‘‘In the case of the standard established by paragraph (14) of 

section 111(d), the reference contained in this subsection to the 

date of enactment of this Act shall be deemed to be a reference 

to the date of enactment of such paragraph (14).’’. 

Subtitle D—Market Transparency, 

Enforcement, and Consumer Protection 

SEC. 1282. MARKET MANIPULATION. 

Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is 

amended by adding at the end the following: 

‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 

‘‘No person or other 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 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 such Federal agency. 

‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 

‘‘(a) PROHIBITION.—No person or other entity (including an entity 

described in section 201(f)) shall willfully and knowingly enter into 

any contract or other arrangement to execute a ‘round trip trade’ 

for the purchase or sale of electric energy at wholesale. 

‘‘(b) DEFINITION.—For the purposes of this section, the term 

‘round trip trade’ means a transaction, or combination of transactions, in which a person or any other entity— 

‘‘(1) enters into a contract or other arrangement to purchase 

from, or sell to, any other person or other entity electric energy 

at wholesale; 

‘‘(2) simultaneously with entering into the contract or arrangement described in paragraph (1), arranges a financially 

68 

offsetting trade with such other person or entity for the same 

such electric energy, at the same location, price, quantity and 

terms so that, collectively, the purchase and sale transactions 

in themselves result in no financial gain or loss; and 

‘‘(3) enters into the contract or arrangement with a specific 

intent to fraudulently affect reported revenues, trading volumes, or prices.’’. 

SEC. 1283. FRAUDULENT OR MANIPULATIVE PRACTICES. 

(a) UNLAWFUL ACTS.—It shall be unlawful for any entity, directly 

or indirectly, by the use of any means or instrumentality of interstate commerce or of the mails to use or employ, in the transmission of electric energy in interstate commerce, the sale of electric energy at wholesale in interstate commerce, the transportation 

of natural gas in interstate commerce, or the sale in interstate commerce of natural gas for resale for ultimate public consumption for 

domestic, commercial, industrial, or any other use, any fraudulent, 

manipulative, or deceptive device or contrivance in contravention of 

such rules and regulations as the Federal Energy Regulatory Commission may prescribe as necessary or appropriate in the public interest. 

(b) APPLICATION OF FEDERAL POWER ACT TO THIS ACT.—The provisions of section 307 through 309 and 313 through 317 of the Federal Power Act shall apply to violations of the Electric Reliability 

Act of 2005 in the same manner and to the same extent as such 

provisions apply to entities subject to Part II of the Federal Power 

Act. 

SEC. 1284. RULEMAKING ON EXEMPTIONS, WAIVERS, ETC. UNDER FEDERAL POWER ACT. 

Part III of the Federal Power Act is amended by inserting the 

following new section after section 319 and by redesignating sections 320 and 321 as sections 321 and 322, respectively: 

‘‘SEC. 320. CRITERIA FOR CERTAIN EXEMPTIONS, WAIVERS, ETC. 

‘‘(a) RULE REQUIRED FOR CERTAIN WAIVERS, EXEMPTIONS, ETC.— 

Not later than 6 months after the enactment of this Act, the Commission shall promulgate a rule establishing specific criteria for 

providing an exemption, waiver, or other reduced or abbreviated 

form of compliance with the requirements of sections 204, 301, 304, 

and 305 (including any prospective blanket order). Such criteria 

shall be sufficient to insure that any such action taken by the Commission will be consistent with the purposes of such requirements 

and will otherwise protect the public interest. 

‘‘(b) MORATORIUM ON CERTAIN WAIVERS, EXEMPTIONS, ETC.— 

After the date of enactment of this section, the Commission may 

not issue, adopt, order, approve, or promulgate any exemption, 

waiver, or other reduced or abbreviated form of compliance with 

the requirements of section 204, 301, 304, or 305 (including any 

prospective blanket order) until after the rule promulgated under 

subsection (a) has taken effect. 

‘‘(c) PREVIOUS FERC ACTION.—The Commission shall undertake a 

review, by rule or order, of each exemption, waiver, or other reduced or abbreviated form of compliance described in subsection (a) 

that was taken before the date of enactment of this section. No 

such action may continue in force and effect after the date 18 

months after the date of enactment of this section unless the ComVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00068 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
69 

mission finds that such action complies with the rule under subsection (a). 

‘‘(d) EXEMPTION UNDER 204(F) NOT APPLICABLE.—For purposes of 

this section, in applying section 204, the provisions of section 204(f) 

shall not apply.’’. 

SEC. 1285. REPORTING REQUIREMENTS IN ELECTRIC POWER SALES 

AND TRANSMISSION. 

(a) AUDIT TRAILS.—Section 304 of the Federal Power Act is 

amended by adding the following new subsection at the end thereof: 

‘‘(c)(1) The Commission shall, by rule or order, require each person or other entity engaged in the transmission of electric energy 

in interstate commerce or the sale of electric energy at wholesale 

in interstate commerce, and each broker, dealer, and power marketer involved in any such transmission or sale, to maintain, and 

periodically submit to the Commission, such records, in electronic 

form, of each transaction relating to such transmission or sale as 

may be necessary to determine whether any person has employed 

any fraudulent, manipulative, or deceptive device or contrivance in 

contravention of rules promulgated by the Commission. 

‘‘(2) Section 201(f) shall not limit the application of this subsection.’’. 

(b) NATURAL GAS.—Section 8 of the Natural Gas Act is amended 

by adding the following new subsection at the end thereof: 

‘‘(d) The Commission shall, by rule or order, require each person 

or other entity engaged in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and each broker, dealer, and 

power marketer involved in any such transportation or sale, to 

maintain, and periodically submit to the Commission, such records, 

in electronic form, of each transaction relating to such transmission 

or sale as may be necessary to determine whether any person has 

employed any fraudulent, manipulative, or deceptive device or contrivance in contravention of rules promulgated by the Commission.’’. 

SEC. 1286. TRANSPARENCY. 

(a) DEFINITION.—As used in this section the term ‘‘electric power 

or natural gas information processor’’ means any person engaged in 

the business of— 

(1) collecting, processing, or preparing for distribution or 

publication, or assisting, participating in, or coordinating the 

distribution or publication of, information with respect to 

transactions in or quotations involving the purchase or sale of 

electric power, natural gas, the transmission of electric energy, 

or the transportation of natural gas, or 

(2) distributing or publishing (whether by means of a ticker 

tape, a communications network, a terminal display device, or 

otherwise) on a current and continuing basis, information with 

respect to such transactions or quotations. 

The term does not include any bona fide newspaper, news magazine, or business or financial publication of general and regular circulation, any self-regulatory organization, any bank, broker, dealer, 

building and loan, savings and loan, or homestead association, or 

70 

cooperative bank, if such bank, broker, dealer, association, or cooperative bank would be deemed to be an electric power or natural 

gas information processor solely by reason of functions performed 

by such institutions as part of customary banking, brokerage, dealing, association, or cooperative bank activities, or any common carrier, as defined in section 3 of the Communications Act of 1934, 

subject to the jurisdiction of the Federal Communications Commission or a State commission, as defined in section 3 of that Act, unless the Commission determines that such carrier is engaged in the 

business of collecting, processing, or preparing for distribution or 

publication, information with respect to transactions in or 

quotations involving the purchase or sale of electric power, natural 

gas, the transmission of electric energy, or the transportation of 

natural gas. 

(b) PROHIBITION.—No electric power or natural gas information 

processor may make use of the mails or any means or instrumentality of interstate commerce— 

(1) to collect, process, distribute, publish, or prepare for distribution or publication any information with respect to 

quotations for, or transactions involving the purchase or sale 

of electric power, natural gas, the transmission of electric energy, or the transportation of natural gas, or 

(2) to assist, participate in, or coordinate the distribution or 

publication of such information in contravention of such rules 

and regulations as the Federal Energy Regulatory Commission 

shall prescribe as necessary or appropriate in the public interest to 

(A) prevent the use, distribution, or publication of fraudulent, deceptive, or manipulative information with respect 

to quotations for and transactions involving the purchase 

or sale of electric power, natural gas, the transmission of 

electric energy, or the transportation of natural gas; 

(B) assure the prompt, accurate, reliable, and fair collection, processing, distribution, and publication of information with respect to quotations for and transactions involving the purchase or sale of electric power, natural gas, the 

transmission of electric energy, or the transportation of 

natural gas, and the fairness and usefulness of the form 

and content of such information; 

(C) assure that all such information processors may, for 

purposes of distribution and publication, obtain on fair and 

reasonable terms such information with respect to 

quotations for and transactions involving the purchase or 

sale of electric power, natural gas, the transmission of 

electric energy, or the transportation of natural gas as is 

collected, processed, or prepared for distribution or publication by any exclusive processor of such information acting in such capacity; 

(D) assure that, subject to such limitations as the Commission, by rule, may impose as necessary or appropriate 

for the maintenance of fair and orderly markets, all persons may obtain on terms which are not unreasonably discriminatory such information with respect to quotations 

for and transactions involving the purchase or sale of electric power, natural gas, the transmission of electric energy, 

71 

or the transportation of natural gas as is published or distributed by any electric power or natural gas information 

processor; 

(E) assure that all electricity and natural gas electronic 

communication networks transmit and direct orders for 

the purchase and sale of electricity or natural gas in a 

manner consistent with the establishment and operation of 

an efficient, fair, and orderly market system for electricity 

and natural gas; and 

(F) assure equal regulation of all markets involving the 

purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural 

gas and all persons effecting transactions involving the 

purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural 

gas. 

(c) RELATED COMMODITIES.—For purposes of this section, the 

phrase ‘‘purchase or sale of electric power, natural gas, the transmission of electric energy, or the transportation of natural gas’’ includes the purchase or sale of any commodity (as defined in the 

Commodities Exchange Act) relating to any such purchase or sale 

if such commodity is excluded from regulation under the Commodities Exchange Act pursuant to section 2 of that Act. 

(d) PROHIBITION.—No person who owns, controls, or is under the 

control or ownership of a public utility, a natural gas company, or 

a public utility holding company may own, control, or operate any 

electronic computer network or other mulitateral trading facility 

utilized to trade electricity or natural gas. 

SEC. 1287. PENALTIES. 

(a) CRIMINAL PENALTIES.—Section 316 of the Federal Power Act 

(16 U.S.C. 825o(c)) is amended as follows: 

(1) By striking ‘‘$5,000’’ in subsection (a) and inserting 

‘‘$5,000,000 for an individual and $25,000,000 for any other defendant’’ and by striking out ‘‘two years’’ and inserting ‘‘five 

years’’ . 

(2) By striking ‘‘$500’’ in subsection (b) and inserting 

‘‘$1,000,000’’. 

(3) By striking subsection (c). 

(b) CIVIL PENALTIES.—Section 316A of the Federal Power Act (16 

U.S.C. 825o091) is amended as follows: 

(1) By striking ‘‘section 211, 212, 213, or 214’’ each place it 

appears and inserting ‘‘Part II’’. 

(2) By striking ‘‘$10,000 for each day that such violation continues’’ and inserting ‘‘the greater of $1,000,000 or three times 

the profit made or gain or loss avoided by reason of such violation’’. 

(3) By adding the following at the end thereof: 

‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PERSONS FROM CERTAIN

ACTIVITIES.—In any proceeding under this section, the court may 

censure, place limitations on the activities, functions, or operations 

of, suspend or revoke the ability of any entity (without regard to 

section 201(f)) to participate in the transmission of electric energy 

in interstate commerce or the sale of electric energy at wholesale 

in interstate commerce if it finds that such censure, placing of limiVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00071 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
72 

tations, suspension, or revocation is in the public interest and that 

one or more of the following applies to such entity: 

‘‘(1) Such entity has willfully made or caused to be made in 

any application or report required to be filed with the Commission or with any other appropriate regulatory agency, or in any 

proceeding before the Commission, any statement which 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, or has omitted to state in any such application or report 

any material fact which is required to be stated therein. 

‘‘(2) Such entity has been convicted of any felony or misdemeanor or of a substantially equivalent crime by a foreign 

court of competent jurisdiction which the court finds— 

‘‘(A) involves the purchase or sale of electricity, the taking of a false oath, the making of a false report, bribery, 

perjury, burglary, any substantially equivalent activity 

however denominated by the laws of the relevant foreign 

government, or conspiracy to commit any such offense; 

‘‘(B) arises out of the conduct of the business of transmitting electric energy in interstate commerce or selling or 

purchasing electric energy at wholesale in interstate commerce; 

‘‘(C) involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds, 

or securities, or substantially equivalent activity however 

denominated by the laws of the relevant foreign government; or 

‘‘(D) involves the violation of section 152, 1341, 1342, or 

1343 or chapter 25 or 47 of title 18, United States Code, 

or a violation of a substantially equivalent foreign statute. 

‘‘(3) Such entity is permanently or temporarily enjoined by 

order, judgment, or decree of any court of competent jurisdiction from acting as an investment adviser, underwriter, broker, 

dealer, municipal securities dealer, government securities 

broker, government securities dealer, transfer agent, foreign 

person performing a function substantially equivalent to any of 

the above, or entity or person required to be registered under 

the Commodity Exchange Act or any substantially equivalent 

foreign statute or regulation, or as an affiliated person or employee of any investment company, bank, insurance company, 

foreign entity substantially equivalent to any of the above, or 

entity or person required to be registered under the Commodity Exchange Act or any substantially equivalent foreign 

statute or regulation, or from engaging in or continuing any 

conduct or practice in connection with any such activity, or in 

connection with the purchase or sale of any security. 

‘‘(4) Such entity has willfully violated any provision of this 

Act. 

‘‘(5) Such entity has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person 

of any provision of this Act, or has failed reasonably to supervise, with a view to preventing violations of the provisions of 

this Act, another person who commits such a violation, if such 

other person is subject to his supervision. For the purposes of 

73 

this paragraph no person shall be deemed to have failed reasonably to supervise any other person, if— 

‘‘(A) there have been established procedures, and a system for applying such procedures, which would reasonably 

be expected to prevent and detect, insofar as practicable, 

any such violation by such other person, and 

‘‘(B) such person has reasonably discharged the duties 

and obligations incumbent upon him by reason of such procedures and system without reasonable cause to believe 

that such procedures and system were not being complied 

with. 

‘‘(6) Such entity has been found by a foreign financial or energy regulatory authority to have— 

‘‘(A) made or caused to be made in any application or report required to be filed with a foreign regulatory authority, or in any proceeding before a foreign financial or energy regulatory authority, any statement that 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, or has omitted to state in any application or report 

to the foreign regulatory authority any material fact that 

is required to be stated therein; 

‘‘(B) violated any foreign statute or regulation regarding 

the transmission or sale of electricity or natural gas; or 

‘‘(C) aided, abetted, counseled, commanded, induced, or 

procured the violation by any person of any provision of 

any statutory provisions enacted by a foreign government, 

or rules or regulations thereunder, empowering a foreign 

regulatory authority regarding transactions in electricity 

or natural gas, or contracts of sale of electricity or natural 

gas, traded on or subject to the rules of a contract market 

or any board of trade, or has been found, by a foreign regulatory authority, to have failed reasonably to supervise, 

with a view to preventing violations of such statutory provisions, rules, and regulations, another person who commits such a violation, if such other person is subject to his 

supervision. 

‘‘(7) Such entity is subject to any final order of a State commission (or any agency or officer performing like functions), 

State authority that supervises or examines banks, savings associations, or credit unions, State insurance commission (or 

any agency or office performing like functions), an appropriate 

Federal banking agency (as defined in section 3 of the Federal 

Deposit Insurance Act (12 U.S.C. 1813(q))), or the National 

Credit Union Administration, that— 

‘‘(A) bars such person from association with an entity 

regulated by such commission, authority, agency, or officer, or from engaging in the business of securities, insurance, banking, savings association activities, or credit 

union activities; or 

‘‘(B) constitutes a final order based on violations of any 

laws or regulations that prohibit fraudulent, manipulative, 

or deceptive conduct.’’ 

74 

(4) Such entity is subject to statutory disqualification within 

the meaning of section 3(a)(39) of the Securities Exchange Act 

of 1934.′′. (c) NATURAL GAS ACT PENALTIES.—Section 21 of the Natural Gas 

Act is amended by adding the following new subsection at the end 

thereof: 

‘‘(c) AUTHORITY OF A COURT TO PROHIBIT PERSONS FROM CERTAIN

ACTIVITIES.—In any proceeding under this section, the court may 

censure, place limitations on the activities, functions, or operations 

of, suspend or revoke the ability of any entity (without regard to 

section 201(f)) to participate in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use if it finds that such censure, 

placing of limitations, suspension, or revocation is in the public interest and that one or more of the following applies to such entity: 

‘‘(1) Such entity has willfully made or caused to be made in 

any application or report required to be filed with the Commission or with any other appropriate regulatory agency, or in any 

proceeding before the Commission, any statement which 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, or has omitted to state in any such application or report 

any material fact which is required to be stated therein. 

‘‘(2) Such entity has been convicted of any felony or misdemeanor or of a substantially equivalent crime by a foreign 

court of competent jurisdiction which the court finds— 

‘‘(A) involves the purchase or sale of natural gas, the 

taking of a false oath, the making of a false report, bribery, perjury, burglary, any substantially equivalent activity however denominated by the laws of the relevant foreign government, or conspiracy to commit any such offense; 

‘‘(B) arises out of the conduct of the business of transmitting natural gas in interstate commerce, or the selling in 

interstate commerce of natural gas for resale for ultimate 

public consumption for domestic, commercial, industrial, or 

any other use; 

‘‘(C) involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds, 

or securities, or substantially equivalent activity however 

denominated by the laws of the relevant foreign government; or 

‘‘(D) involves the violation of section 152, 1341, 1342, or 

1343 or chapter 25 or 47 of title 18, United States Code, 

or a violation of a substantially equivalent foreign statute. 

‘‘(3) Such entity is permanently or temporarily enjoined by 

order, judgment, or decree of any court of competent jurisdiction from acting as an investment adviser, underwriter, broker, 

dealer, municipal securities dealer, government securities 

broker, government securities dealer, transfer agent, foreign 

person performing a function substantially equivalent to any of 

the above, or entity or person required to be registered under 

the Commodity Exchange Act or any substantially equivalent 

75 

foreign statute or regulation, or as an affiliated person or employee of any investment company, bank, insurance company, 

foreign entity substantially equivalent to any of the above, or 

entity or person required to be registered under the Commodity Exchange Act or any substantially equivalent foreign 

statute or regulation, or from engaging in or continuing any 

conduct or practice in connection with any such activity, or in 

connection with the purchase or sale of any security. 

‘‘(4) Such entity has willfully violated any provision of this 

Act. 

‘‘(5) Such entity has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person 

of any provision of this Act, or has failed reasonably to supervise, with a view to preventing violations of the provisions of 

this Act, another person who commits such a violation, if such 

other person is subject to his supervision. For the purposes of 

this paragraph no person shall be deemed to have failed reasonably to supervise any other person, if— 

‘‘(A) there have been established procedures, and a system for applying such procedures, which would reasonably 

be expected to prevent and detect, insofar as practicable, 

any such violation by such other person, and 

‘‘(B) such person has reasonably discharged the duties 

and obligations incumbent upon him by reason of such procedures and system without reasonable cause to believe 

that such procedures and system were not being complied 

with. 

‘‘(6) Such entity has been found by a foreign financial or energy regulatory authority to have— 

‘‘(A) made or caused to be made in any application or report required to be filed with a foreign regulatory authority, or in any proceeding before a foreign financial or energy regulatory authority, any statement that 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, or has omitted to state in any application or report 

to the foreign regulatory authority any material fact that 

is required to be stated therein; 

‘‘(B) violated any foreign statute or regulation regarding 

the transmission or sale of electricity or natural gas; 

‘‘(C) aided, abetted, counseled, commanded, induced, or 

procured the violation by any person of any provision of 

any statutory provisions enacted by a foreign government, 

or rules or regulations thereunder, empowering a foreign 

regulatory authority regarding transactions in electricity 

or natural gas, or contracts of sale of electricity or natural 

gas, traded on or subject to the rules of a contract market 

or any board of trade, or has been found, by a foreign regulatory authority, to have failed reasonably to supervise, 

with a view to preventing violations of such statutory provisions, rules, and regulations, another person who commits such a violation, if such other person is subject to his 

supervision. 

‘‘(7) Such entity is subject to any final order of a State commission (or any agency or officer performing like functions), 

76 

State authority that supervises or examines banks, savings associations, or credit unions, State insurance commission (or 

any agency or office performing like functions), an appropriate 

Federal banking agency (as defined in section 3 of the Federal 

Deposit Insurance Act (12 U.S.C. 1813(q))), or the National 

Credit Union Administration, that— 

‘‘(A) bars such person from association with an entity 

regulated by such commission, authority, agency, or officer, or from engaging in the business of securities, insurance, banking, savings association activities, or credit 

union activities; or 

‘‘(B) constitutes a final order based on violations of any 

laws or regulations that prohibit fraudulent, manipulative, 

or deceptive conduct. 

‘‘(8) Such entity is subject to statutory disqualification within 

the meaning of section 3(a)(39) of the Securities Exchange Act 

of 1934.’’. 

SEC. 1288. REVIEW OF PUHCA EXEMPTIONS. 

Not later than 12 months after the enactment of this Act the Securities and Exchange Commission shall review each exemption 

granted to any person under section 3(a) of the Public Utility Holding Company Act of 1935 and shall review the action of persons operating pursuant to a claim of exempt status under section 3 to determine if such exemptions and claims are consistent with the requirements of such section 3(a) and whether or not such exemptions or claims of exemption should continue in force and effect. 

SEC. 1289. REVIEW OF ACCOUNTING FOR CONTRACTS INVOLVED IN 

ENERGY TRADING. 

Not later than 12 months after the enactment of this Act, the 

Comptroller General of the United States shall submit to the Congress a report of the results of its review of accounting for contracts 

in energy trading and risk management activities. The review and 

report shall include, among other issues, the use of mark-to-market 

accounting and when gains and losses should be recognized, with 

a view toward improving the transparency of energy trading activities for the benefit of investors, consumers, and the integrity of 

these markets. 

SEC. 1290. PROTECTION OF FERC REGULATED SUBSIDIARIES. 

Section 205 of the Federal Power Act is amended by adding after 

subsection (f) the following new subsection: 

‘‘(g) RULES AND PROCEDURES TO PROTECT CONSUMERS OF PUBLIC

UTILITIES.—Not later than 9 months after the date of enactment of 

this Act, the Commission shall adopt rules and procedures for the 

protection of electric consumers from self-dealing, interaffiliate 

abuse, and other harmful actions taken by persons owning or controlling public utilities. Such rules shall ensure that no asset of a 

public utility company shall be used as collateral for indebtedness 

incurred by the holding company of, and any affiliate of, such public utility company, and no public utility shall acquire or own any 

securities of the holding company or other affiliates of the holding 

company unless the Commission has determined that such acquisition or ownership is consistent with the public interest and the protection of consumers of such public utility.’’. 

77 

SEC. 1291. REFUNDS UNDER THE FEDERAL POWER ACT. 

Section 206(b) of the Federal Power Act is amended as follows: 

(1) By amending the first sentence to read as follows: ‘‘In any 

proceeding under this section, the refund effective date shall be 

the date of the filing of a complaint or the date of the Commission motion initiating the proceeding, except that in the case 

of a complaint with regard to market-based rates, the Commission may establish an earlier refund effective date.’’. 

(2) By striking the second and third sentences. 

(3) By striking out ‘‘the refund effective date or by’’ and ‘‘, 

whichever is earlier,’’ in the fifth sentence. 

(4) In the seventh sentence by striking ‘‘through a date fifteen months after such refund effective date’’ and insert ‘‘and 

prior to the conclusion of the proceeding’’ and by striking the 

proviso. 

SEC. 1292. ACCOUNTS AND REPORTS. 

Section 318 of the Federal Power Act is amended by adding the 

following at the end thereof: ‘‘This section shall not apply to sections 301 and 304 of this Act.’’. 

SEC. 1293. MARKET-BASED RATES. 

Section 205 of the Federal Power Act is amended by adding the 

following new subsection at the end thereof: 

‘‘(g) For each public utility granted the authority by the Commission to sell electric energy at market-based rates, the Commission 

shall review the activities and characteristics of such utility not 

less frequently than annually to determine whether such rates are 

just and reasonable. Each such utility shall notify the Commission 

promptly of any change in the activities and characteristics relied 

upon by the Commission in granting such public utility the authority to sell electric energy at market-based rates. If the Commission 

finds that: 

‘‘(1) a rate charged by a public utility authorized to sell electric energy at market-based rates is unjust, unreasonable, unduly discriminatory or preferential, 

‘‘(2) the public utility has intentionally engaged in an activity 

that violates any other rule, tariff, or order of the Commission, 

or 

‘‘(3) any violation of the Electric Reliability Act of 2005, 

the Commission shall issue an order immediately modifying or revoking the authority of that public utility to sell electric energy at 

market-based rates.’’. 

SEC. 1294. ENFORCEMENT. 

(a) COMPLAINTS.—Section 306 of the Federal Power Act (16 

U.S.C. 825e) is amended as follows: 

(1) By inserting ‘‘electric utility,’’ after ‘‘Any person,’’. 

(2) By inserting ‘‘, transmitting utility,’’ after ‘‘licensee’’ each 

place it appears. 

(b) REVIEW OF COMMISSION ORDERS.—Section 313(a) of the Federal Power Act (16 U.S.C. 8251) is amended by inserting ‘‘electric 

utility,’’ after ‘‘person,’’ in the first 2 places it appears and by striking ‘‘any person unless such person’’ and inserting ‘‘any entity unless such entity’’. 

(c) INVESTIGATIONS.—Section 307(a) of the Federal Power Act (16 

U.S.C. 825f(a)) is amended as follows: 

78 

(1) By inserting ‘‘, electric utility, transmitting utility, or 

other entity’’ after ‘‘person’’ each time it appears. 

(2) By striking the period at the end of the first sentence and 

inserting the following: ‘‘or in obtaining information about the 

sale of electric energy at wholesale in interstate commerce and 

the transmission of electric energy in interstate commerce.’’. 

SEC. 1295. CONSUMER PRIVACY AND UNFAIR TRADE PRACTICES. 

(a) PRIVACY.—The Federal Trade Commission may issue rules 

protecting the privacy of electric consumers from the disclosure of 

consumer information obtained in connection with the sale or delivery of electric energy to electric consumers. 

(b) SLAMMING.—The Federal Trade Commission may issue rules 

prohibiting the change of selection of an electric utility except with 

the informed consent of the electric consumer or if approved by the 

appropriate State regulatory authority. 

(c) CRAMMING.—The Federal Trade Commission may issue rules 

prohibiting the sale of goods and services to an electric consumer 

unless expressly authorized by law or the electric consumer. 

(d) RULEMAKING.—The Federal Trade Commission shall proceed 

in accordance with section 553 of title 5, United States Code, when 

prescribing a rule under this section. 

(e) STATE AUTHORITY.—If the Federal Trade Commission determines that a State’s regulations provide equivalent or greater protection than the provisions of this section, such State regulations 

shall apply in that State in lieu of the regulations issued by the 

Commission under this section. 

(f) DEFINITIONS.—For purposes of this section: 

(1) STATE REGULATORY AUTHORITY.—The term ‘‘State regulatory authority’’ has the meaning given that term in section 

3(21) of the Federal Power Act (16 U.S.C. 796(21)). 

(2) ELECTRIC CONSUMER AND ELECTRIC UTILITY.—The terms 

‘‘electric consumer’’ and ‘‘electric utility’’ have the meanings 

given those terms in section 3 of the Public Utility Regulatory 

Policies Act of 1978 (16 U.S.C. 2602). 

‘‘(d) The Commission shall, by rule or order, require each person 

or other entity engaged in the transportation of natural gas in 

interstate commerce, or the sale in interstate commerce of natural 

gas for resale for ultimate public consumption for domestic, commercial, industrial, or any other use, and each broker, dealer, and 

power marketer involved in any such transportation or sale, to 

maintain, and periodically submit to the Commission, such records, 

in electronic form, of each transaction relating to such transmission 

or sale as may be necessary to determine whether any person has 

employed any fraudulent, manipulative, or deceptive device or contrivance in contravention of rules promulgated by the Commission.’’. 

SEC. 1296. SAVINGS PROVISION. 

Nothing in this title or in any amendment made by this title 

shall be construed to affect the authority of any court to make a 

determination in any proceeding commenced before the enactment 

of this Act regarding the authority of the Federal Energy Regulatory Commission to permit any person to sell or distribute electric energy at market-based rates. 

79 

In section 25C(b)(1)(A) of the Internal Revenue Code of 1986, as 

proposed to be added by section 1311 of the bill, insert after clause 

(iii) the following new clauses: 

(iv) $150 for each electric heat pump water heater, 

(v) $200 for each advanced natural gas, oil, propane 

furnace, or hot water boiler installed in 2006 ($150 for 

equipment installed in 2007, $100 for equipment installed in 2008), 

(vi) $150 for each advanced natural gas, oil, or propane water heater, 

(vii) $50 for each mid-efficiency natural gas, oil, or 

propane water heater, 

(viii) $50 for an advanced main air circulating fan 

which is installed in a furnace with an Annual Fuel 

Utilization Efficiency of less than 92 percent, 

(ix) $150 for each advanced combination space and 

water heating system, 

(x) $50 for each mid-efficiency combination space 

and water heating system, 

(xi) $250 for each geothermal heat pump, and 

(xii) $250 for each advanced central air conditioner 

or central heat pump ($150 for equipment installed in 

2008). 

In section 25C(a) of the Internal Revenue Code of 1986, as proposed to be added by section 1311 of the bill, insert after paragraph 

(3) the following new paragraph: 

(4) the energy efficient building property described in clauses 

(iv) through (xii) of subsection (b)(1)(A). 

In section 25C(b) of the Internal Revenue Code of 1986, as proposed to be added by section 1311 of the bill, insert after paragraph 

(2) the following new paragraph: 

(3) SAFETY CERTIFICATIONS.—No credit shall be allowed 

under this section for an item of property specified in clause 

(iv) through (xii) of paragraph (1) unless such property meets 

the performance and quality standards, and the certification 

requirements (if any), which— 

(A) have been prescribed by the Secretary by regulations 

(after consultation with the Secretary of Energy or the Administrator of the Environmental Protection Agency, as 

appropriate), 

(B) in the case of the energy efficiency ratio (EER) for 

property described in clause (viii) or (ix) of subsection 

(d)(1)(B)— 

(i) require measurements to be based on published 

data which is tested by manufacturers at 95 degrees 

Fahrenheit, and 

(ii) do not require ratings to be based on certified 

data of the Air Conditioning and Refrigeration Institute, and 

(C) are in effect at the time of the acquisition of the 

property. 

In section 25C(c) of the Internal Revenue Code of 1986, as proposed to be added by section 1311 of the bill, add at the end the 

following new paragraphs: 

80 

(4) ENERGY EFFICIENT BUILDING PROPERTY.—The term ‘‘energy efficient building property’’ means— 

(A) an electric heat pump water heater which yields an 

energy factor of at least 1.7 in the standard Department 

of Energy test procedure, 

(B) an advanced natural gas, oil, propane furnace, or hot 

water boiler which achieves at least 92 percent annual fuel 

utilization efficiency (AFUE) and which has an advanced 

main air circulating fan, 

(C) an advanced natural gas, oil, or propane water heater which has an energy factor of at least 0.80 in the standard Department of Energy test procedure, 

(D) a mid-efficiency natural gas, oil, or propane water 

heater which has an energy factor of at least 0.65 but less 

than 0.80 in the standard Department of Energy test procedure, 

(E) an advanced main air circulating fan which has an 

annual electricity use of no more than 2 percent of the 

total annual energy use (as determined in the standard 

Department of Energy test procedures) and which is used 

in a new natural gas, propane, or oil-fired furnace, 

(F) an advanced combination space and water heating 

system which has a combined energy factor of at least 0.80 

and a combined annual fuel utilization efficiency (AFUE) 

of at least 78 percent in the standard Department of Energy test procedure, 

(G) a mid-efficiency combination space and water heating system which has a combined energy factor of at least 

0.65 but less than 0.80 and a combined annual fuel utilization efficiency (AFUE) of at least 78 percent in the standard Department of Energy test procedure, 

(H) a geothermal heat pump which has water heating 

capability by a desuperheater or full-condensing option 

and which has an energy efficiency ratio (EER) of at least 

18 for ground-loop systems, at least 21 for ground-water 

systems, and at least 17 for direct GeoExchange systems; 

and 

(I) a central air conditioner or central heat pump which 

meets the Energy Star specifications as set by the Environmental Protection Agency. The specifications must be 

made effective after December 31, 2005, and must be current as of the date of the expenditure or made effective 

later in the calendar year of the expenditure. 

(5) LABOR COSTS.—Expenditures for labor costs properly allocable to the onsite preparation, assembly, or original installation of the property and for piping or wiring to interconnect 

property described in paragraph (4) to the dwelling unit shall 

be taken into account for purposes of this section. 

In subtitle B of title XIII, add at the end the following: 

SEC. 1318. CREDIT FOR CONSTRUCTION OF NEW ENERGY EFFICIENT 

HOMES. 

(a) IN GENERAL.—Subpart D of part IV of subchapter A of chapter 1 (relating to business related credits) is amended by adding at 

the end the following new section: 

81 

‘‘SEC. 45K. NEW ENERGY EFFICIENT HOME CREDIT. 

‘‘(a) IN GENERAL.—For purposes of section 38, in the case of an 

eligible contractor with respect to a qualified new energy efficient 

home, the credit determined under this section for the taxable year 

with respect to such home is an amount equal to the aggregate adjusted bases of all energy efficient property installed in such home 

during construction of such home. 

‘‘(b) LIMITATIONS.— 

‘‘(1) MAXIMUM CREDIT.— 

‘‘(A) IN GENERAL.—The credit allowed by this section 

with respect to a dwelling unit shall not exceed— 

‘‘(i) in the case of a dwelling unit described in clause 

(i) or (iii) of subsection (c)(3)(C), $1,000, and 

‘‘(ii) in the case of a dwelling unit described in 

clause (ii) or (iv) of subsection (c)(3)(C), $2,000. 

‘‘(B) PRIOR CREDIT AMOUNTS ON SAME DWELLING UNIT

TAKEN INTO ACCOUNT.—If a credit was allowed under subsection (a) with respect to a dwelling unit in 1 or more 

prior taxable years, the amount of the credit otherwise allowable for the taxable year with respect to such dwelling 

unit shall be reduced by the sum of the credits allowed 

under subsection (a) with respect to the dwelling unit for 

all prior taxable years. 

‘‘(2) COORDINATION WITH CERTAIN CREDITS.—For purposes of 

this section— 

‘‘(A) the basis of any property referred to in subsection 

(a) shall be reduced by that portion of the basis of any 

property which is attributable to qualified rehabilitation 

expenditures (as defined in section 47(c)(2)) or to the energy percentage of energy property (as determined under 

section 48(a)), and 

‘‘(B) expenditures taken into account under section 47 or 

48(a) shall not be taken into account under this section. 

‘‘(c) DEFINITIONS.—For purposes of this section— 

‘‘(1) ELIGIBLE CONTRACTOR.—The term ‘eligible contractor’ 

means— 

‘‘(A) the person who constructed the qualified new energy efficient home, or 

‘‘(B) in the case of a qualified new energy efficient home 

which is a manufactured home, the manufactured home 

producer of such home. 

If more than 1 person is described in subparagraph (A) or (B) 

with respect to any qualified new energy efficient home, such 

term means the person designated as such by the owner of 

such home. 

‘‘(2) ENERGY EFFICIENT PROPERTY.—The term ‘energy efficient property’ means any energy efficient building envelope 

component, and any energy efficient heating or cooling equipment or system, which can, individually or in combination with 

other components, result in a dwelling unit meeting the requirements of this section. 

‘‘(3) QUALIFIED NEW ENERGY EFFICIENT HOME.—The term 

‘qualified new energy efficient home’ means a dwelling unit— 

‘‘(A) located in the United States, 

82 

‘‘(B) the construction of which is substantially completed 

after the date of the enactment of this section, and 

‘‘(C) which is— 

‘‘(i) certified to have a level of annual heating and 

cooling energy consumption which is at least 30 percent below the annual level of heating and cooling energy consumption of a comparable dwelling unit constructed in accordance with the standards of chapter 

4 of the 2003 International Energy Conservation Code, 

as such Code (including supplements) is in effect on 

the date of the enactment of this section, and for 

which the heating and cooling equipment efficiencies 

correspond to the minimum allowed under the regulations established by the Department of Energy pursuant to the National Appliance Energy Conservation 

Act of 1987 and in effect at the time of construction, 

and to have building envelope component improvements account for at least 1⁄3 of such 30 percent, 

‘‘(ii) certified to have a level of annual heating and 

cooling energy consumption which is at least 50 percent below such annual level and to have building envelope component improvements account for at least 

1⁄5 of such 50 percent, 

‘‘(iii) a manufactured home which meets the requirements of clause (i) and which conforms to Federal 

Manufactured Home Construction and Safety Standards (section 3280 of title 24, Code of Federal Regulations), or 

‘‘(iv) a manufactured home which meets the requirements of clause (ii) and which conforms to Federal 

Manufactured Home Construction and Safety Standards (section 3280 of title 24, Code of Federal Regulations). 

‘‘(4) CONSTRUCTION.—The term ‘construction’ includes substantial reconstruction and rehabilitation. 

‘‘(5) ACQUIRE.—The term ‘acquire’ includes purchase and, in 

the case of reconstruction and rehabilitation, such term includes a binding written contract for such reconstruction or rehabilitation. 

‘‘(6) BUILDING ENVELOPE COMPONENT.—The term ‘building 

envelope component’ means— 

‘‘(A) any sealant, insulation material, or system which is 

specifically and primarily designed to reduce the heat loss 

or gain of a dwelling unit when installed in or on such 

dwelling unit, 

‘‘(B) exterior windows (including skylights), 

‘‘(C) exterior doors, and 

‘‘(D) any metal roof installed on a dwelling unit, but only 

if such roof has appropriate pigmented coatings which— 

‘‘(i) are specifically and primarily designed to reduce 

the heat gain of such dwelling unit, and 

‘‘(ii) meet the Energy Star program requirements. 

‘‘(d) CERTIFICATION.— 

‘‘(1) METHOD OF CERTIFICATION.—A certification described in 

subsection (c)(3)(C) shall be determined in accordance with 

83 

guidance prescribed by the Secretary, after consultation with 

the Secretary of Energy. Such guidance shall specify procedures and methods for calculating energy and cost savings. 

‘‘(2) FORM.—A certification described in subsection (c)(3)(C) 

shall be made in writing in a manner which specifies in readily 

verifiable fashion the energy efficient building envelope components and energy efficient heating or cooling equipment installed and their respective rated energy efficiency performance. 

‘‘(e) BASIS ADJUSTMENT.—For purposes of this subtitle, if a credit 

is determined under this section for any expenditure with respect 

to any property, the increase in the basis of such property which 

would (but for this subsection) result from such expenditure shall 

be reduced by the amount of the credit so determined. 

‘‘(f) SPECIAL RULE WITH RESPECT TO BUILDINGS WITH ENERGY

EFFICIENT PROPERTY.—In any case in which a deduction under section 200 or a credit under section 25C has been allowed with respect to property in connection with a dwelling unit, the level of 

annual heating and cooling energy consumption of the comparable 

dwelling unit referred to in clauses (i) and (ii) of subsection 

(c)(3)(C) shall be determined assuming such comparable dwelling 

unit contains the property for which such deduction or credit has 

been allowed. 

‘‘(g) APPLICATION OF SECTION.— ‘‘(1) 50 PERCENT HOMES.—In the case of any dwelling unit described in clause (ii) or (iv) of subsection (c)(3)(C), subsection 

(a) shall apply to qualified new energy efficient homes acquired 

during the period beginning on the date of the enactment of 

this section, and ending on December 31, 2009. 

‘‘(2) 30 PERCENT HOMES.—In the case of any dwelling unit described in clause (i) or (iii) of subsection (c)(3)(C), subsection (a) 

shall apply to qualified new energy efficient homes acquired 

during the period beginning on the date of the enactment of 

this section, and ending on December 31, 2007.’’. 

(b) CREDIT MADE PART OF GENERAL BUSINESS CREDIT.—Section 

38(b) (relating to current year business credit) is amended by striking ‘‘plus’’ at the end of paragraph (19), by striking the period at 

the end of paragraph (18) and inserting ‘‘, plus’’, and by adding at 

the end the following new paragraph: 

‘‘(21) the new energy efficient home credit determined under 

section 45K(a).’’. 

(c) BASIS ADJUSTMENT.—Subsection (a) of section 1016 is amended by striking ‘‘and’’ at the end of paragraph (33), by striking the 

period at the end of paragraph (34) and inserting ‘‘, and’’, and by 

adding at the end the following new paragraph: 

‘‘(35) to the extent provided in section 45K(e), in the case of 

amounts with respect to which a credit has been allowed under 

section 45K.’’. 

(d) DEDUCTION FOR CERTAIN UNUSED BUSINESS CREDITS.—Section 196(c) (defining qualified business credits) is amended by 

striking ‘‘and’’ at the end of paragraph (11), by striking the period 

at the end of paragraph (12) and inserting ‘‘, and’’, and by adding 

after paragraph (12) the following new paragraph: 

‘‘(13) the new energy efficient home credit determined under 

section 45K(a).’’. 

84 

(e) CLERICAL AMENDMENT.—The table of sections for subpart D 

of part IV of subchapter A of chapter 1 is amended by adding at 

the end the following new item: 

‘‘Sec. 45K. New energy efficient home credit.’’. 

(f) EFFECTIVE DATE.—The amendments made by this section 

shall apply to taxable years ending after the date of the enactment 

of this Act. 

SEC. 1319. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. 

(a) IN GENERAL.—Part VI of subchapter B of chapter 1 (relating 

to itemized deductions for individuals and corporations) is amended 

by inserting after section 179B the following new section: 

‘‘SEC. 179C. ENERGY EFFICIENT COMMERCIAL BUILDINGS DEDUCTION. 

‘‘(a) IN GENERAL.—There shall be allowed as a deduction an 

amount equal to the cost of energy efficient commercial building 

property placed in service during the taxable year. 

‘‘(b) MAXIMUM AMOUNT OF DEDUCTION.—The deduction under 

subsection (a) with respect to any building for the taxable year and 

all prior taxable years shall not exceed an amount equal to the 

product of— ‘‘(1) $2.25, and 

‘‘(2) the square footage of the building. 

‘‘(c) DEFINITIONS.—For purposes of this section— 

‘‘(1) ENERGY EFFICIENT COMMERCIAL BUILDING PROPERTY.— The term ‘energy efficient commercial building property’ means 

property— 

‘‘(A) which is installed on or in any building located in 

the United States, 

‘‘(B) which is installed as part of— 

‘‘(i) the interior lighting systems, 

‘‘(ii) the heating, cooling, ventilation, and hot water 

systems, or 

‘‘(iii) the building envelope, and 

‘‘(C) which is certified in accordance with subsection 

(d)(6) as being installed as part of a plan designed to reduce the total annual energy and power costs with respect 

to the interior lighting systems, heating, cooling, ventilation, and hot water systems of the building by 50 percent 

or more in comparison to a reference building which meets 

the minimum requirements of Standard 90.1–2001 using 

methods of calculation under subsection (d)(2). 

A building described in subparagraph (A) may include any residential rental property, including any low-rise multifamily 

structure or single family housing property which is not within 

the scope of Standard 90.1–2001, but shall not include any 

qualified new energy efficient home (within the meaning of section 45K(d)(3)) for which a credit under section 45K has been 

allowed. 

‘‘(2) STANDARD 90.1–2001.—The term ‘Standard 90.1–2001’ 

means Standard 90.1–2001 of the American Society of Heating, 

Refrigerating, and Air Conditioning Engineers and the Illuminating Engineering Society of North America (as in effect on 

April 2, 2003). 

‘‘(d) SPECIAL RULES.— 

85 

‘‘(1) PARTIAL ALLOWANCE.— ‘‘(A) IN GENERAL.—Except as provided in subsection (f), 

if— 

‘‘(i) the requirement of subsection (c)(1)(C) is not 

met, but 

‘‘(ii) there is a certification in accordance with paragraph (6) that any system referred to in subsection 

(c)(1)(B) satisfies the energy-savings targets established by the Secretary under subparagraph (B) with 

respect to such system, 

then the requirement of subsection (c)(1)(C) shall be treated as met with respect to such system, and the deduction 

under subsection (a) shall be allowed with respect to energy efficient commercial building property installed as 

part of such system and as part of a plan to meet such targets, except that subsection (b) shall be applied to such 

property by substituting ‘$.75’ for ‘$2.25’. 

‘‘(B) REGULATIONS.—The Secretary, after consultation 

with the Secretary of Energy, shall establish a target for 

each system described in subsection (c)(1)(B) which, if such 

targets were met for all such systems, the building would 

meet the requirements of subsection (c)(1)(C). 

‘‘(2) METHODS OF CALCULATION.—The Secretary, after consultation with the Secretary of Energy, shall promulgate regulations which describe in detail methods for calculating and 

verifying energy and power consumption and cost, based on the 

provisions of the 2005 California Nonresidential Alternative 

Calculation Method Approval Manual or, in the case of residential property, the 2005 California Residential Alternative 

Calculation Method Approval Manual. These regulations shall 

meet the following requirements: 

‘‘(A) In calculating tradeoffs and energy performance, the 

regulations shall prescribe the costs per unit of energy and 

power, such as kilowatt hour, kilowatt, gallon of fuel oil, 

and cubic foot or Btu of natural gas, which may be dependent on time of usage. If a State has developed annual energy usage and cost calculation procedures based on time 

of usage costs for use in the performance standards of the 

State’s building energy code before the effective date of 

this section, the State may use those annual energy usage 

and cost calculation procedures in lieu of those adopted by 

the Secretary. 

‘‘(B) The calculation methods under this paragraph need 

not comply fully with section 11 of Standard 90.1–2001. 

‘‘(C) The calculation methods shall be fuel neutral, such 

that the same energy efficiency features shall qualify a 

building for the deduction under this section regardless of 

whether the heating source is a gas or oil furnace or an 

electric heat pump. The reference building for a proposed 

design which employs electric resistance heating shall be 

modeled as using a heat pump. 

‘‘(D) The calculation methods shall provide appropriate 

calculated energy savings for design methods and technologies not otherwise credited in either Standard 90.1– 

2001 or in the 2005 California Nonresidential Alternative 

86 

Calculation Method Approval Manual, including the following: 

‘‘(i) Natural ventilation. 

‘‘(ii) Evaporative cooling. 

‘‘(iii) Automatic lighting controls such as occupancy 

sensors, photocells, and timeclocks. 

‘‘(iv) Daylighting. 

‘‘(v) Designs utilizing semi-conditioned spaces which 

maintain adequate comfort conditions without air conditioning or without heating. 

‘‘(vi) Improved fan system efficiency, including reductions in static pressure. 

‘‘(vii) Advanced unloading mechanisms for mechanical cooling, such as multiple or variable speed compressors. 

‘‘(viii) The calculation methods may take into account the extent of commissioning in the building, and 

allow the taxpayer to take into account measured performance which exceeds typical performance. 

‘‘(ix) On-site generation of electricity, including combined heat and power systems, fuel cells, and renewable energy generation such as solar energy. 

‘‘(x) Wiring with lower energy losses than wiring 

satisfying Standard 90.1–2001 requirements for building power distribution systems. 

‘‘(3) COMPUTER SOFTWARE.— ‘‘(A) IN GENERAL.—Any calculation under paragraph (2) 

shall be prepared by qualified computer software. 

‘‘(B) QUALIFIED COMPUTER SOFTWARE.—For purposes of 

this paragraph, the term ‘qualified computer software’ 

means software— 

‘‘(i) for which the software designer has certified 

that the software meets all procedures and detailed 

methods for calculating energy and power consumption and costs as required by the Secretary, 

‘‘(ii) which provides such forms as required to be 

filed by the Secretary in connection with energy efficiency of property and the deduction allowed under 

this section, and 

‘‘(iii) which provides a notice form which documents 

the energy efficiency features of the building and its 

projected annual energy costs. 

‘‘(4) ALLOCATION OF DEDUCTION FOR PUBLIC PROPERTY.—In 

the case of energy efficient commercial building property installed on or in public property, the Secretary shall promulgate 

a regulation to allow the allocation of the deduction to the person primarily responsible for designing the property in lieu of 

the public entity which is the owner of such property. Such 

person shall be treated as the taxpayer for purposes of this section. 

‘‘(5) NOTICE TO OWNER.—Each certification required under 

this section shall include an explanation to the building owner 

regarding the energy efficiency features of the building and its 

projected annual energy costs as provided in the notice under 

paragraph (3)(B)(iii). 

87 

‘‘(6) CERTIFICATION.— 

‘‘(A) IN GENERAL.—The Secretary shall prescribe the 

manner and method for the making of certifications under 

this section. 

‘‘(B) PROCEDURES.—The Secretary shall include as part 

of the certification process procedures for inspection and 

testing by qualified individuals described in subparagraph 

(C) to ensure compliance of buildings with energy-savings 

plans and targets. Such procedures shall be comparable, 

given the difference between commercial and residential 

buildings, to the requirements in the Mortgage Industry 

National Accreditation Procedures for Home Energy Rating Systems. 

‘‘(C) QUALIFIED INDIVIDUALS.—Individuals qualified to 

determine compliance shall be only those individuals who 

are recognized by an organization certified by the Secretary for such purposes. 

‘‘(e) BASIS REDUCTION.—For purposes of this subtitle, if a deduction is allowed under this section with respect to any energy efficient commercial building property, the basis of such property shall 

be reduced by the amount of the deduction so allowed. 

‘‘(f) INTERIM RULES FOR LIGHTING SYSTEMS.—Until such time as 

the Secretary issues final regulations under subsection (d)(1)(B) 

with respect to property which is part of a lighting system— 

‘‘(1) IN GENERAL.—The lighting system target under subsection (d)(1)(A)(ii) shall be a reduction in lighting power density of 25 percent (50 percent in the case of a warehouse) of 

the minimum requirements in Table 9.3.1.1 or Table 9.3.1.2 

(not including additional interior lighting power allowances) of 

Standard 90.1–2001. 

‘‘(2) REDUCTION IN DEDUCTION IF REDUCTION LESS THAN 40

PERCENT.— 

‘‘(A) IN GENERAL.—If, with respect to the lighting system 

of any building other than a warehouse, the reduction in 

lighting power density of the lighting system is not at least 

40 percent, only the applicable percentage of the amount 

of deduction otherwise allowable under this section with 

respect to such property shall be allowed. 

‘‘(B) APPLICABLE PERCENTAGE.—For purposes of subparagraph (A), the applicable percentage is the number of percentage points (not greater than 100) equal to the sum of— 

‘‘(i) 50, and 

‘‘(ii) the amount which bears the same ratio to 50 as 

the excess of the reduction of lighting power density of 

the lighting system over 25 percentage points bears to 

15. 

‘‘(C) EXCEPTIONS.—This subsection shall not apply to 

any system— 

‘‘(i) the controls and circuiting of which do not comply fully with the mandatory and prescriptive requirements of Standard 90.1–2001 and which do not include provision for bilevel switching in all occupancies 

except hotel and motel guest rooms, store rooms, restrooms, and public lobbies, or 

88 

‘‘(ii) which does not meet the minimum requirements for calculated lighting levels as set forth in the 

Illuminating Engineering Society of North America 

Lighting Handbook, Performance and Application, 

Ninth Edition, 2000. 

‘‘(g) COORDINATION WITH OTHER TAX BENEFITS.— 

‘‘(1) NO DOUBLE BENEFIT.—No deduction shall be allowed 

under subsection (a) with respect to any building for which a 

credit under section 45K has been allowed. 

‘‘(2) SPECIAL RULE WITH RESPECT TO BUILDINGS WITH ENERGY

EFFICIENT PROPERTY.—In any case in which a deduction under 

section 200 or a credit under section 25C has been allowed 

with respect to property in connection with a building, the annual energy and power costs of the reference building referred 

to in subsection (c)(1)(C) shall be determined assuming such 

reference building contains the property for which such deduction or credit has been allowed. 

‘‘(h) REGULATIONS.—The Secretary shall promulgate such regulations as necessary— 

‘‘(1) to take into account new technologies regarding energy 

efficiency and renewable energy for purposes of determining 

energy efficiency and savings under this section, and 

‘‘(2) to provide for a recapture of the deduction allowed under 

this section if the plan described in subsection (c)(1)(C) or 

(d)(1)(A) is not fully implemented. 

‘‘(i) TERMINATION.—This section shall not apply with respect to 

property placed in service after December 31, 2010.’’. 

(b) CONFORMING AMENDMENTS.— 

(1) Section 1016(a) is amended by striking ‘‘and’’ at the end 

of paragraph (34), by striking the period at the end of paragraph (35) and inserting ‘‘, and’’, and by adding at the end the 

following new paragraph: 

‘‘(36) to the extent provided in section 179C(e).’’. 

(2) Section 1245(a) is amended by inserting ‘‘179C,’’ after 

‘‘179B,’’ both places it appears in paragraphs (2)(C) and (3)(C). 

(3) Section 1250(b)(3) is amended by inserting before the period at the end of the first sentence ‘‘or by section 179C’’. 

(4) Section 263(a)(1) is amended by striking ‘‘or’’ at the end 

of subparagraph (H), by striking the period at the end of subparagraph (I) and inserting ‘‘, or’’, and by inserting after subparagraph (I) the following new subparagraph: 

‘‘(J) expenditures for which a deduction is allowed under 

section 179C.’’. 

(5) Section 312(k)(3)(B) is amended by striking ‘‘section 179, 

179A, or 179B’’ each place it appears in the heading and text 

and inserting ‘‘section 179, 179A, 179B, or 179C’’. 

(c) CLERICAL AMENDMENT.—The table of sections for part VI of 

subchapter B of chapter 1 is amended by inserting after section 

179B the following new item: 

‘‘Sec. 179C. Energy efficient commercial buildings deduction.’’. 

(d) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property placed in service after the date of the enactment of this Act in taxable years ending after such date. 

89 

SEC. 1320. ENERGY CREDIT FOR COMBINED HEAT AND POWER SYSTEM PROPERTY. 

(a) IN GENERAL.—Section 48(a)(3)(A) (defining energy property), 

as amended by this title, is amended by striking ‘‘or’’ at the end 

of clause (ii), by inserting ‘‘or’’ at the end of clause (iii), and by adding at the end the following: 

‘‘(iv) combined heat and power system property,’’. 

(b) COMBINED HEAT AND POWER SYSTEM PROPERTY.—Section 48 

(relating to energy credit), as amended by this title, is amended by 

adding at the end the following new subsection: 

‘‘(c) COMBINED HEAT AND POWER SYSTEM PROPERTY.—For purposes of subsection (a)(3)(A)(iv)— 

‘‘(1) COMBINED HEAT AND POWER SYSTEM PROPERTY.—The 

term ‘combined heat and power system property’ means property comprising a system— 

‘‘(A) which uses the same energy source for the simultaneous or sequential generation of electrical power, mechanical shaft power, or both, in combination with the generation of steam or other forms of useful thermal energy (including heating and cooling applications), 

‘‘(B) which has an electrical capacity of not more than 15 

megawatts or a mechanical energy capacity of not more 

than 2,000 horsepower or an equivalent combination of 

electrical and mechanical energy capacities, 

‘‘(C) which produces— 

‘‘(i) at least 20 percent of its total useful energy in 

the form of thermal energy which is not used to 

produce electrical or mechanical power (or combination 

thereof), and 

‘‘(ii) at least 20 percent of its total useful energy in 

the form of electrical or mechanical power (or combination thereof), 

‘‘(D) the energy efficiency percentage of which exceeds 60 

percent, and 

‘‘(E) which is placed in service before January 1, 2009. 

‘‘(2) SPECIAL RULES.— 

‘‘(A) ENERGY EFFICIENCY PERCENTAGE.—For purposes of 

this subsection, the energy efficiency percentage of a system is the fraction— 

‘‘(i) the numerator of which is the total useful electrical, thermal, and mechanical power produced by the 

system at normal operating rates, and expected to be 

consumed in its normal application, and 

‘‘(ii) the denominator of which is the lower heating 

value of the fuel sources for the system. 

‘‘(B) DETERMINATIONS MADE ON BTU BASIS.—The energy 

efficiency percentage and the percentages under paragraph 

(1)(C) shall be determined on a Btu basis. 

‘‘(C) INPUT AND OUTPUT PROPERTY NOT INCLUDED.—The 

term ‘combined heat and power system property’ does not 

include property used to transport the energy source to the 

facility or to distribute energy produced by the facility. 

‘‘(D) PUBLIC UTILITY PROPERTY.— 

‘‘(i) ACCOUNTING RULE FOR PUBLIC UTILITY PROPERTY.—If the combined heat and power system propVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00089 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
90 

erty is public utility property (as defined in section 

168(i)(10)), the taxpayer may only claim the credit 

under subsection (a) if, with respect to such property, 

the taxpayer uses a normalization method of accounting. 

‘‘(ii) CERTAIN EXCEPTION NOT TO APPLY.—The matter 

in subsection (a)(3) which follows subparagraph (D) 

thereof shall not apply to combined heat and power 

system property. 

‘‘(E) NONAPPLICATION OF CERTAIN RULES.—For purposes 

of determining if the term ‘combined heat and power system property’ includes technologies which generate electricity or mechanical power using back-pressure steam turbines in place of existing pressure-reducing valves or 

which make use of waste heat from industrial processes 

such as by using organic rankine, stirling, or kalina heat 

engine systems, paragraph (1) shall be applied without regard to subparagraphs (A), (C), and (D) thereof. 

‘‘(3) SYSTEMS USING BAGASSE.—If a system is designed to use 

bagasse for at least 90 percent of the energy source— 

‘‘(A) paragraph (1)(D) shall not apply, but 

‘‘(B) the amount of credit determined under subsection 

(a) with respect to such system shall not exceed the 

amount which bears the same ratio to such amount of 

credit (determined without regard to this paragraph) as 

the energy efficiency percentage of such system bears to 60 

percent. 

(c) EFFECTIVE DATE.—The amendments made by this subsection 

shall apply to periods after December 31, 2005, in taxable years 

ending after such date, under rules similar to the rules of section 

48(m) of the Internal Revenue Code of 1986 (as in effect on the day 

before the date of the enactment of the Revenue Reconciliation Act 

of 1990). 

SEC. 1320A. EXTENSION THROUGH 2010 FOR PLACING QUALIFIED FACILITIES IN SERVICE FOR PRODUCING RENEWABLE 

ELECTRIC ENERGY. 

(a) IN GENERAL.—Subsection (d) of section 45 is amended by 

striking ‘‘January 1, 2006’’ each place it appears and inserting 

‘‘January 1, 2011’’. 

(b) EFFECTIVE DATE.—The amendments made by this section 

shall apply to property originally placed in service on or after January 1, 2006. 

At the end of title XIII, insert after subtitle C the following new 

subtitle: 

Subtitle D—Method of Accounting for Oil, 

Gas, and Primary Products Thereof 

SEC. 1331. PROHIBITION ON USING LAST IN, FIRST-OUT ACCOUNTING 

FOR OIL, GAS, AND PRIMARY PRODUCTS THEREOF. 

(a) IN GENERAL.—Section 472 (relating to last-in, first-out inventories) is amended by adding at the end the following new subsection: 

91 

‘‘(h) OIL AND GAS.—Notwithstanding any other provision of this 

section— 

‘‘(1) oil, gas, and any primary product of oil or gas, shall be 

inventoried separately, and 

‘‘(2) a taxpayer may not use the method provided in subsection (b) in inventorying oil, gas, and any primary product of 

oil or gas.’’. 

(b) EFFECTIVE DATE AND SPECIAL RULE.— 

(1) IN GENERAL.—The amendment made by subsection (a) 

shall apply to taxable years beginning after the date of the enactment of this Act. 

(2) CHANGE IN METHOD OF ACCOUNTING.—In the case of any 

taxpayer required by the amendment made by this section to 

change its method of accounting for its first taxable year beginning after the date of the enactment of this Act— 

(A) such change shall be treated as initiated by the taxpayer, 

(B) such change shall be treated as made with the consent of the Secretary of the Treasury, and 

(C) the net amount of the adjustments required to be 

taken into account by the taxpayer under section 481 of 

the Internal Revenue Code of 1986 shall be taken into account ratably over a period (not greater than 10 taxable 

years) beginning with such first taxable year. 

SEC. 1332. EMERGING TECHNOLOGIES TRUST FUND. 

(a) IN GENERAL.—Subchapter A of chapter 98 (relating to trust 

fund code) is amended by adding at the end the following new section: 

‘‘SEC. 9511. EMERGING TECHNOLOGIES TRUST FUND. 

‘‘(a) CREATION OF TRUST FUND.—There is established in the 

Treasury of the United States a trust fund to be known as the 

‘Emerging Technologies Trust Fund’, consisting of such amounts as 

may be appropriated or credited to such Trust Fund as provided in 

this section or section 9602(b). 

‘‘(b) TRANSFERS TO TRUST FUND.— 

‘‘(1) IN GENERAL.—There are hereby appropriated to the 

Emerging Technologies Trust Fund amounts equivalent to the 

taxes received in the Treasury by reason of section 472(h) (relating to prohibition on use of last-in, first-out inventory accounting for oil and gas). 

‘‘(2) LIMITATION.—The amount appropriated to the Trust 

Fund under paragraph (1) for any fiscal year shall not exceed 

$5,000,000,000. 

‘‘(c) EXPENDITURES.—Amounts in the Emerging Technologies 

Trust Fund shall be available to the Secretary of Energy to carry 

out a program to research and develop emerging technologies for 

more efficient and renewable energy sources.’’. 

(b) CLERICAL AMENDMENT.—The table of sections for such subchapter is amended by adding at the end thereof the following new 

item: 

‘‘Sec. 9511. Emerging Technologies Trust Fund.’’. 

In title XIV, add at the end the following new sections: 

92 

SEC. 1452. SMALL BUSINESS COMMERCIALIZATION ASSISTANCE. 

(a) AUTHORITY.—The Secretary of Energy shall provide assistance, to small businesses with less than 100 employees and startup 

companies, for the commercial application of renewable energy and 

energy efficiency technologies developed by or with support from 

the Department of Energy. Such assistance shall be provided 

through a competitive review process. 

(b) APPLICATIONS.—The Secretary of Energy shall establish requirements for applications for assistance under this section. Such 

applications shall contain a commercial application plan, including 

a description of the financial, business, and technical support (including support from universities and national laboratories) the applicant anticipates in its commercial application effort. 

(c) SELECTION.—The Secretary of Energy shall select applicants 

to receive assistance under this section on the basis of which applications are the most likely to result in commercial application of 

renewable energy and energy efficiency technologies. 

(d) LIMIT ON FEDERAL FUNDING.—The Secretary of Energy shall 

provide under this section no more than 50 percent of the costs of 

the project funded. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Secretary of Energy for carrying out this 

section $200,000,000 for each of the fiscal years 2006 through 2010, 

and such sums as may be necessary for each of the fiscal years 

2011 through 2026. 

SEC. 1453. SENSE OF THE CONGRESS. 

It is the sense of the Congress that the President should direct 

the Federal Trade Commission and Attorney General to exercise 

vigorous oversight over the oil markets to protect the American 

people from price gouging and unfair practices at the gasoline 

pump. 

SEC. 1454. TRANSPARENCY. 

The Federal Trade Commission, in consultation with the Secretary of Energy, shall issue regulations requiring full disclosure by 

refiners and distributors of their wholesale motor fuel pricing policies, with a separate listing of each component contributing to 

prices, including the cost of crude oil (with exploration, extraction, 

and transportation costs shown separately if the refiner or distributor is also the producer of the crude oil), refining, marketing, 

transportation, equipment, overhead, and profit, along with ption of 

any rebates, incentives, and market enhancement allowances. 

In title XVI, add at the end the following new section: 

SEC. 1614. STUDY OF FINANCING FOR PROTOTYPE TECHNOLOGIES. 

(a) INDEPENDENT ASSESSMENT.—The Secretary of Energy shall 

commission an independent assessment of innovative financing 

techniques to facilitate construction of new renewable energy and 

energy efficiency facilities that might not otherwise be built in a 

competitive market. 

(b) CONDUCT OF THE ASSESSMENT.—The Secretary of Energy 

shall retain an independent contractor with proven expertise in financing large capital projects or in financial services consulting to 

conduct the assessment under this section. 

(c) CONTENT OF THE ASSESSMENT.—The assessment shall include 

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93 

guard private investors against risks (including both market-based 

and government-imposed risks) that are beyond the control of the 

investors. Such techniques may include Federal loan guarantees, 

Federal price guarantees, special tax considerations, and direct 

Federal investment. 

(d) REPORT.—The Secretary of Energy shall submit the results of 

the independent assessment to the Congress not later than 9 

months after the date of enactment of this section. 

8. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SLAUGH- TER OF NEW YORK, OR HER DESIGNEE, DEBATABLE FOR 10 MIN- UTES

In title I, subtitle C, add at the end the following new section: 

SEC. 135. INTERMITTENT ESCALATORS. 

Section 543 of the National Energy Conservation Policy Act (42 

U.S.C. 8253) is amended by adding at the end the following new 

subsection: 

‘‘(e) INTERMITTENT ESCALATORS.— 

‘‘(1) REQUIREMENT.—Except as provided in paragraph (2), 

any escalator acquired for installation in a Federal building 

shall be an intermittent escalator. 

‘‘(2) EXCEPTION.—Paragraph (1) shall not apply at a location 

outside the United States where the Federal agency determines that to acquire an intermittent escalator would require 

substantially greater cost to the Government over the life of 

the escalator. 

‘‘(3) ADDITIONAL ENERGY CONSERVATION MEASURES.—In addition to complying with paragraph (1), Federal agencies shall 

incorporate other escalator energy conservation measures, as 

appropriate. 

‘‘(4) DEFINITION.—For purposes of this subsection, the term 

‘intermittent escalator’ means an escalator that remains in a 

stationary position until it automatically operates at the approach of a passenger, returning to a stationary position after 

the passenger completes passage.’’. 

9. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WAXMAN

OF CALIFORNIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title I, add the following new subtitle and make the 

necessary conforming changes in the table of contents: 

Subtitle E—Plan to Reduce Oil Demand 

SEC. 151. PRESIDENTIAL ACTIONS. 

(a) PROPOSED ACTIONS.—For purposes of reducing waste of oil 

and decreasing demand for foreign oil, not later than 6 months 

after the date of enactment of this Act, appropriate Federal Departments and agencies, as identified by the President, shall propose 

voluntary, regulatory, and other actions sufficient to reduce demand for oil in the United States by at least 1.0 million barrels per 

day from projected demand for oil in 2013. 

94 

(b) REQUEST TO CONGRESS.—If the President determines that the 

Departments and agencies referred to in subsection (a) lack authority or funding to implement the actions proposed under subsection 

(a), the President shall request the necessary authority or funding 

from Congress no later than 9 months after the date of enactment 

of this Act. 

(c) FINAL ACTIONS.—No later than 12 months after the date of 

enactment of this Act, the Departments and agencies referred to in 

subsection (a) shall finalize the actions proposed pursuant to subsection (a) for which they have authority and funding. 

(d) PRESIDENTIAL DETERMINATION.—The Departments and agencies referred to in subsection (a) may finalize regulatory and other 

actions pursuant to subsection (c) that achieve demand reductions 

less than the demand reduction specified in subsection (a) if the 

President, after public notice and opportunity for comment, determines that there are no practical opportunities for the nation to 

further reduce waste of oil. 

(e) CAFE.—Nothing in this section shall mandate any changes in 

average fuel economy standards (‘‘CAFE’’ standards) prescribed 

under chapter 329 of title 49 of the United States Code. 

10. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE OBERSTAR

OF MINNESOTA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of subtitle A of title II, add the following (and conform 

the table of contents accordingly): 

SEC. 209. INSTALLATION OF PHOTOVOLTAIC SYSTEM. 

There is authorized to be appropriated to the General Services 

Administration to install a photovoltaic system, as set forth in the 

Sun Wall Design Project, for the headquarters building of the Department of Energy located at 1000 Independence Avenue Southwest in the District of Columbia, commonly known as the Forrestal 

Building, $20,000,000 for fiscal year 2006. Such sums shall remain 

available until expended. 

11. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ABERCROMBIE OF HAWAII, OR HIS DESIGNEE, DEBATABLE FOR 10 MIN- UTES

In title II, subtitle A, add at the end the following new section: 

SEC. 209. SUGAR CANE ETHANOL PILOT PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) PROGRAM.—The term ‘‘program’’ means the Sugar Cane 

Ethanol Pilot Program established by subsection (b). 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Energy. 

(b) ESTABLISHMENT.—There is established within the Department of Energy a program to be known as the ‘‘Sugar Cane Ethanol Pilot Program’’. 

(c) PROJECT.— 

(1) IN GENERAL.—In carrying out the program, the Secretary 

shall establish a pilot project that is— 

(A) located in the State of Hawaii; and 

95 

(B) designed to study the creation of ethanol from cane 

sugar. 

(2) REQUIREMENTS.—A pilot project described in paragraph 

(1) shall— 

(A) be limited to the production of ethanol in Hawaii in 

a way similar to the existing program for the processing of 

corn for ethanol to show that the process can be applicable 

to cane sugar; 

(B) include information on how the scale of projection 

can be replicated once the sugar cane industry has site located and constructed ethanol production facilities; and 

(C) not last more than 3 years. 

(d) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to carry out this section $8,000,000, to remain 

available until expended. 

12. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KAPTUR

OF OHIO, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In title III, subtitle A, add at the end the following new section 

(and amend the table of contents accordingly): 

SEC. 305. STRATEGIC FUELS RESERVE. 

The Energy Policy and Conservation Act is amended— 

(1) in section 2(2) (42 U.S.C. 6201(2)), by striking ‘‘Strategic 

Petroleum Reserve’’ and inserting ‘‘Strategic Fuels Reserve’’; 

(2) in section 3 (42 U.S.C. 6202)— 

(A) in paragraph (8)(C), by striking ‘‘petroleum products’’ 

each place it appears and inserting ‘‘fuel products’’; and 

(B) by adding at the end the following new paragraph: 

‘‘(11) The term ‘fuel products’ means petroleum products and 

alternative fuels, including ethanol and biodiesel.’’; 

(3) in title I (42 U.S.C. 6212 et seq.) by striking ‘‘Strategic 

Petroleum Reserve’’ each place it appears and inserting ‘‘Strategic Fuels Reserve’’; 

(4) in part B of title I (42 U.S.C. 6231 et seq.)— 

(A) by striking ‘‘petroleum products’’ each place it appears, including headings (and the corresponding items in 

the table of contents), and inserting ‘‘fuel products’’; 

(B) by striking ‘‘petroleum product’’ each place it appears, including headings (and the corresponding items in 

the table of contents), and inserting ‘‘fuel product’’; and 

(C) by striking ‘‘Petroleum products’’ each place it appears and inserting ‘‘Fuel products’’; 

(5) in section 165 (42 U.S.C. 6245)— 

(A) in paragraph (5), by striking ‘‘of petroleum’’ and inserting ‘‘of fuel’’; and 

(B) in paragraph (7), by striking ‘‘Petroleum Accounts’’ 

and inserting ‘‘Fuel Accounts’’; and 

(6) in section 167 (42 U.S.C. 6247)— 

(A) in the section heading (and the corresponding item 

in the table of contents), by striking ‘‘SPR Petroleum’’ and 

inserting ‘‘SFR Fuel’’; and 

(B) in subsection (a), by striking ‘‘SPR Petroleum’’ and 

inserting ‘‘SFR Fuel’’. 

96 

13. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CONAWAY

OF TEXAS, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In title III, subtitle B, add at the end the following new section: 

SEC. 334. OIL, GAS, AND MINERAL INDUSTRY WORKERS. 

Congress recognizes that a critical component in meeting expanded domestic oil and gas supplies is the availability of adequate 

numbers of trained and skilled workers who can undertake the difficult, complex, and often hazardous tasks to bring new supplies 

into production. Years of volatility in oil and gas prices, and uncertainty over Federal policy on access to resources, has created a severe shortage of skilled workers for the oil and gas industry. To address this shortage, the Secretary of Energy, in consultation with 

the Secretary of Labor, shall evaluate both the short term and 

longer term availability of skilled workers to meet the energy security requirements of the United States, addressing the availability 

of skilled labor at both entry level and at more senior levels in the 

oil, gas, and mineral industries. Within twelve months of the date 

of enactment of this Act, the Secretary of Energy, the Secretary of 

Labor, and the Secretary of the Interior shall submit to Congress 

a report with recommendations as appropriate to meet the future 

labor requirements for the domestic extraction industries. 

14. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE SOLIS OF

CALIFORNIA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike subtitle D of title III (relating to refinery revitalization) 

and make the necessary conforming changes in the table of contents. 

15. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE UDALL OF

NEW MEXICO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike section 631 (and amend the table of contents accordingly). 

16. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE FORD OF

TENNESSEE, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In title VII, subtitle B, part 1, add at the end the following new 

section: 

SEC. 713. EFFICIENT HYBRID AND ADVANCED DIESEL VEHICLES. 

(a) PROGRAM.—The Administrator of the Environmental Protection Agency shall establish a program to encourage domestic production and sales of efficient hybrid and advanced diesel vehicles. 

The program shall include grants to domestic automobile manufacturers to— 

(1) encourage production of efficient hybrid and advanced 

diesel vehicles; and 

(2) provide consumer incentives, including discounts and rebates, for the purchase of efficient hybrid and advanced diesel 

vehicles. 

(b) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Administrator of the Environmental ProtecVerDate Aug 04 2004 06:18 Apr 20, 2005 Jkt 039008 PO 00000 Frm 00096 Fmt 6659 Sfmt 6602 E:\HR\OC\HR049.XXX HR049
97 

tion Agency for carrying out this section $300,000,000 for each of 

the fiscal years 2006 through 2015. 

17. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KAPTUR

OF OHIO, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 722(a), strike ‘‘15’’ and insert ‘‘20’’. 

In section 722(e)(1), strike ‘‘$20,000,000’’ and ‘‘$15,000,000’’. 

18. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

MILLENDER-MCDONALD OF CALIFORNIA, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In title VII, after section 743 insert the following new section and 

make the necessary conforming changes in the table of contents: 

SEC. 743A. DIESEL TRUCK RETROFIT AND FLEET MODERNIZATION 

PROGRAM. 

(a) ESTABLISHMENT.—The Administrator of the Environmental 

Protection Agency, in consultation with the Secretary of Energy, 

shall establish a program for awarding grants on a competitive 

basis to public agencies and entities for fleet modernization programs including installation of retrofit technologies for diesel 

trucks. 

(b) ELIGIBLE RECIPIENTS.—A grant shall be awarded under this 

section only to a State or local government or an agency or instrumentality of a State or local government or of two or more State 

or local governments who will allocate funds, with preference to 

ports and other major hauling operations. 

(c) AWARDS.— 

(1) IN GENERAL.—The Administrator shall seek, to the maximum extent practicable, to ensure a broad geographic distribution of grants under this section. 

(2) PREFERENCES.—In making awards of grants under this 

section, the Administrator shall give preference to proposals 

that— 

(A) will achieve the greatest reductions in emissions of 

nonmethane hydrocarbons, oxides of nitrogen, and/or particulate matter per proposal or per truck; or 

(B) involve the use of Environmental Protection Agency 

or California Air Resources Board verified emissions control retrofit technology on diesel trucks that operate solely 

on ultra-low sulfur diesel fuel after September 2006. 

(d) CONDITIONS OF GRANT.—A grant shall be provided under this 

section on the conditions that— 

(1) trucks which are replacing scrapped trucks and on which 

retrofit emissions-control technology are to be demonstrated— 

(A) will operate on ultra-low sulfur diesel fuel where 

such fuel is reasonably available or required for sale by 

State or local law or regulation; 

(B) were manufactured in model year 1998 and before; 

and 

(C) will be used for the transportation of cargo goods especially in port areas or used in goods movement and 

major hauling operations; 

98 

(2) grant funds will be used for the purchase of emission control retrofit technology, including State taxes and contract fees; 

and 

(3) grant recipients will provide at least 5 percent of the total 

cost of the retrofit, including the purchase of emission control 

retrofit technology and all necessary labor for installation of 

the retrofit, from any source other than this section. 

(e) VERIFICATION.—Not later than 90 days after the date of enactment of this Act, the Administrator shall publish in the Federal 

Register procedures to— 

(1) make grants pursuant to this section; 

(2) verify that trucks powered by ultra-low sulfur diesel fuel 

on which retrofit emissions-control technology are to be demonstrated will operate on diesel fuel containing not more than 

15 parts per million of sulfur after September 2006; and 

(3) verify that grants are administered in accordance with 

this section. 

(f) AUTHORIZATION OF APPROPRIATIONS.—There are authorized to 

be appropriated to the Administrator to carry out this section, to 

remain available until expended the following sums: 

(1) $20,000,000 for fiscal year 2005. 

(2) $35,000,000 for fiscal year 2006. 

(3) $45,000,000 for fiscal year 2007. 

(4) Such sums as are necessary for each of fiscal years 2008 

and 2009. 

19. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE

BLUMENAUER OF OREGON, OR HIS DESIGNEE, DEBATABLE FOR 10 

MINUTES

In title VII, subtitle D, after section 754, insert the following new 

section (and amend the table of contents accordingly): 

SEC. 755. CONSERVE BY BICYCLING PROGRAM. 

(a) DEFINITIONS.—In this section: 

(1) PROGRAM.—The term ‘‘program’’ means the Conserve by 

Bicycling Program established by subsection (b). 

(2) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Transportation. 

(b) ESTABLISHMENT.—There is established within the Department of Transportation a program to be known as the ‘‘Conserve 

by Bicycling Program’’. 

(c) PROJECTS.— 

(1) IN GENERAL.—In carrying out the program, the Secretary 

shall establish not more than 10 pilot projects that are— 

(A) dispersed geographically throughout the United 

States; and 

(B) designed to conserve energy resources by encouraging the use of bicycles in place of motor vehicles. 

(2) REQUIREMENTS.—A pilot project described in paragraph 

(1) shall— 

(A) use education and marketing to convert motor vehicle trips to bicycle trips; 

(B) document project results and energy savings (in estimated units of energy conserved); 

99 

(C) facilitate partnerships among interested parties in at 

least 2 of the fields of— 

(i) transportation; 

(ii) law enforcement; 

(iii) education; 

(iv) public health; 

(v) environment; and 

(vi) energy; 

(D) maximize bicycle facility investments; 

(E) demonstrate methods that may be used in other regions of the United States; and 

(F) facilitate the continuation of ongoing programs that 

are sustained by local resources. 

(3) COST SHARING.—At least 20 percent of the cost of each 

pilot project described in paragraph (1) shall be provided from 

State or local sources. 

(d) ENERGY AND BICYCLING RESEARCH STUDY.— (1) IN GENERAL.—Not later than 2 years after the date of enactment of this Act, the Secretary shall enter into a contract 

with the National Academy of Sciences for, and the National 

Academy of Sciences shall conduct and submit to Congress a 

report on, a study on the feasibility of converting motor vehicle 

trips to bicycle trips. 

(2) COMPONENTS.—The study shall— 

(A) document the results or progress of the pilot projects 

under subsection (c); 

(B) determine the type and duration of motor vehicle 

trips that people in the United States may feasibly make 

by bicycle, taking into consideration factors such as— 

(i) weather; 

(ii) land use and traffic patterns; 

(iii) the carrying capacity of bicycles; and 

(iv) bicycle infrastructure; 

(C) determine any energy savings that would result from 

the conversion of motor vehicle trips to bicycle trips; 

(D) include a cost-benefit analysis of bicycle infrastructure investments; and 

(E) include a description of any factors that would encourage more motor vehicle trips to be replaced with bicycle trips. 

(e) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated to carry out this section $6,200,000, to remain 

available until expended, of which— 

(1) $5,150,000 shall be used to carry out pilot projects described in subsection (c); 

(2) $300,000 shall be used by the Secretary to coordinate, 

publicize, and disseminate the results of the program; and 

(3) $750,000 shall be used to carry out subsection (d). 

20. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE JACKSONLEE OF TEXAS, OR HER DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 910, add at the end the following new subsection: 

(h) INTEGRATED BIOENERGY RESEARCH AND DEVELOPMENT.—In 

addition to amounts otherwise authorized by this section, there are 

100 

authorized to be appropriated to the Secretary for integrated bioenergy research and development programs, projects, and activities, $49,000,000 for each of the fiscal years 2005 through 2009. Activities funded under this subsection shall be coordinated with ongoing related programs of other Federal agencies, including the 

Plant Genome Program of the National Science Foundation. Of the 

funds authorized under this subsection, at least $5,000,000 for each 

fiscal year shall be for training and education targeted to minority 

and social disadvantaged farmers and ranchers. 

21. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE TOM

DAVIS OF VIRGINIA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike section 978 (and conform the table of contents accordingly). 

22. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE WALSH OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

SEC. 1452. NATIONAL PRIORITY PROJECT DESIGNATION. 

(a) DEFINITIONS.—For purposes of this section: 

(1) SECRETARY.—The term ‘‘Secretary’’ means the Secretary 

of Energy. 

(2) DEPARTMENT.—The term ‘‘Department’’ means the Department of Energy. 

(b) DESIGNATION OF NATIONAL PRIORITY PROJECTS.— 

(1) IN GENERAL.—There is hereby established the National 

Priority Project designation, which shall be evidenced by a 

medal bearing the inscription ‘‘National Priority Project’’. The 

medal shall be of such design and materials and bear such additional inscriptions as the President may prescribe. 

(2) MAKING AND PRESENTATION OF DESIGNATION.— 

(A) IN GENERAL.—The President, on the basis of recommendations made by the Secretary, shall annually designate organizations, if any, that have— 

(i) advanced the field of renewable energy technology and contribute to North American energy independence; and 

(ii) a project that has been certified by the Secretary 

under subsection (c). 

(B) PRESENTATION.—The President shall designate 

projects with such ceremonies as the President may prescribe. 

(C) USE OF DESIGNATION.—An organization that receives 

a designation under this section may publicize its designation as a National Priority Project in its advertising. 

(D) CATEGORIES IN WHICH THE DESIGNATION MAY BE

GIVEN.—Separate designations shall be made to qualifying 

projects in each of the following categories: 

(i) Renewable energy generation projects. 

(ii) Energy efficient and renewable energy building 

projects. 

(c) APPLICATION AND CERTIFICATION.— 

101 

(1) SELECTION CRITERIA.—Certification and selection of the 

projects to receive the designation shall be based on the following criteria: 

(A) FOR ALL PROJECTS.—The project demonstrates that it 

will install no less than 30 megawatts of renewable energy 

generation capacity. 

(B) FOR ENERGY EFFICIENT BUILDING AND RENEWABLE

ENERGY PROJECTS.—In addition to meeting the criteria established in subparagraph (A), building projects shall— 

(i) comply with nationally recognized standards for 

high-performance, sustainable buildings; 

(ii) utilize whole-building integration of energy efficiency and environmental performance design and 

technology, including advanced building controls; 

(iii) utilize renewable energy for at least 50 percent 

of its energy consumption; 

(iv) comply with applicable Energy Star standards; 

and 

(v) include at least 5,000,000 square feet of enclosed 

space. 

(2) APPLICATION.— 

(A) INITIAL APPLICATIONS.—No later than 4 months after 

the date of enactment of this Act, and annually thereafter, 

the Secretary shall publish in the Federal Register an invitation and guidelines for submitting applications, consistent with the provisions of this section. 

(B) CONTENTS.—The application shall describe the 

project, or planned project, and its plans to meet the criteria listed in paragraph (1). 

(3) CERTIFICATION.—Not later than 60 days after the application period described in paragraph (2), the Secretary shall certify projects that are reasonably expected to meet the criteria 

described in paragraph (1). 

23. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ENGEL OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In section 1512, in the section heading, strike ‘‘CELLULOSIC 

BIOMASS AND WASTE-DERIVED ETHANOL CONVERSION 

ASSISTANCE’’ insert ‘‘CONVERSION ASSISTANCE FOR 

CELLULOSIC BIOMASS, WASTE-DERIVED ETHANOL, APPROVED RENEWABLE FUELS’’. 

In section 1512, in the proposed subsection (r), in the subsection 

heading, strike ‘‘CELLULOSIC BIOMASS AND WASTE-DERIVED ETHANOL CONVERSION ASSISTANCE’’ and insert ‘‘CONVERSION ASSISTANCE FOR CELLULOSIC BIOMASS, WASTE-DERIVED ETHANOL, APPROVED RENEWABLE FUELS’’. 

In section 1512, in the proposed subsection (r)(1), strike ‘‘wastederived ethanol’’ and insert ‘‘, waste-derived ethanol, and approved 

renewable fuels’’. 

In section 1512, in the proposed subsection (r)(1), insert ‘‘or approved renewable fuels’’ after ‘‘production of ethanol’’. 

In section 1512, in the proposed subsection (r)(2)(B), insert ‘‘or renewable’’ after ‘‘uses cellulosic’’. 

102 

In section 1512, in the proposed subsection (r), insert after paragraph (3) the following new paragraph: 

‘‘(4) DEFINITIONS.—For the purposes of this subsection: 

‘‘(A) The term ‘approved renewable fuels’ are fuels and 

components of fuels that have been approved by the Department of Energy, as defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211)), which have 

been made from renewable biomass. 

‘‘(B) The term ‘renewable biomass’ is, as defined in Presidential Executive Order 13134, published in the Federal 

Register on August 16, 1999, any organic matter that is 

available on a renewable or recurring basis (excluding oldgrowth timber), including dedicated energy crops and 

trees, agricultural food and feed crop residues, acquatic 

plants, animal wastes, wood and wood residues, paper and 

paper residues, and other vegetative waste materials. Oldgrowth timber means timber of a forest from the late successional stage of forest development.’’. 

24. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE ISRAEL OF

NEW YORK, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title XVI, add the following new section: 

SEC. 1614. CONSOLIDATION OF GASOLINE INDUSTRY. 

(a) IN GENERAL.—The Comptroller General of the United States 

shall conduct a study of the consolidation of the refiners, importers, 

producers, and wholesalers of gasoline with the sellers of such gasoline at retail. The study shall include an analysis of the impact 

of such consolidation on— 

(1) the retail price of gasoline, 

(2) small business ownership, 

(3) other corollary effects on the market economy of fuel distribution, 

(4) local communities, and 

(5) other market impacts of such consolidation. 

(b) SUBMISSION TO CONGRESS.—The Comptroller General shall 

submit such study to the Congress not later than one year after the 

date of the enactment of this Act. 

25. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE KUCINICH

OF OHIO, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In title XVI, add at the end the following new section (and 

amend the table of contents accordingly): 

SEC. 1614. FEASIBILITY STUDY OF MUSTARD SEED BIODIESEL. 

(a) STUDY.—The Secretary of Energy shall enter into an arrangement with the National Academy of Sciences for a study to determine the feasibility of using of mustard seed as a feedstock for biodiesel. 

(b) CONTENTS.—The study shall include comparisons to other biodiesel feedstocks using the following criteria: 

(1) Economics from crop production to biodiesel in the typical 

percentage blends. 

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(2) Adaptability to various geographic and agricultural regions in the United States. 

(3) Percentage and quality of oil content. 

(4) Cetene ratings, viscosity ratings, emissions for the typical 

percentage blends. 

(5) Potential to enhance oil, pesticide and herbicide qualities. 

(6) Process technologies to convert into biodiesel. 

(7) Usefulness of byproducts from the conversion process. 

(8) Other criteria the National Academy of Sciences considers pertinent. 

(c) REPORT TO CONGRESS.—Not later than 1 year after the date 

of enactment of this Act, the National Academy of Sciences shall 

transmit results of the study to Congress, the Secretary of Energy, 

and the Secretary of Agriculture, including any findings and recommendations. 

26. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HOLT OF

NEW JERSEY, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In title XVI, add at the end the following new section (and 

amend the table of contents accordingly): 

SEC. 1614. STUDY OF FUEL SAVINGS FROM INFORMATION TECHNOLOGY FOR TRANSPORTATION. 

Not later than 2 years after the date of enactment of this Act, 

the Secretary of Energy shall, in consultation with the Secretary of 

Transportation, report to Congress on the potential fuel savings 

from information technology systems that help businesses and consumers to plan their travel and avoid delays. These systems may 

include web-based real-time transit information systems, congestion information systems, carpool information systems, parking information systems, freight route management, and traffic management systems. The report shall include analysis of fuel savings, 

analysis of system costs, assessment of local, State, and regional 

differences in applicability, and evaluation of case studies, best 

practices, and emerging technologies from both the private and 

public sector. 

27. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE GRIJALVA

OF ARIZONA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

Strike section 2005. 

28. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE INSLEE OF

WASHINGTON, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of title XXVI add the following: 

SEC. ll. LIMITATION ON RENT AND OTHER CHARGES WITH RESPECT 

TO WIND ENERGY DEVELOPMENT PROJECTS ON PUBLIC 

LANDS. 

(a) IN GENERAL.—The Secretary of the Interior may not impose 

rent and other charges, excluding for the cost of processing rightsof-way, with respect to any wind energy development project on 

public lands that, in the aggregate, exceed 50 percent of the maximum amount of rent that could be charged with respect to that 

104 

project under the terms of Bureau of Land Management Instruction Memorandum No. 2003–020, dated October 16, 2002. 

(b) TERMINATION.—Subsection (a) shall not apply after the earlier 

of— 

(1) the date on which the Secretary of the Interior determines there exists at least 10,000 megawatts of electricity generating capacity from non-hydropower renewable energy resources on public lands; or 

(2) the end of the 10-year period beginning on the date of the 

enactment of this Act. 

(c) STATE SHARE NOT AFFECTED.—This section shall not affect 

any State share of rent and other charges with respect to any wind 

energy development project on public lands. 

29. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE HASTINGS

OF FLORIDA, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

At the end of the bill, add the following new title: 

TITLE XXVII—ENVIRONMENTAL 

JUSTICE 

SEC. 2701. EXECUTIVE ORDER 12898. 

The provisions of Executive Order 12898, dated February 11, 

1994, pertaining to Federal actions to address environmental justice in minority populations and low-income populations, shall remain in force until changed by law. In carrying out such executive 

order, the provisions of this title shall apply. 

SEC. 2702. ADDITIONAL PROVISIONS RELATING TO ENVIRONMENTAL 

JUSTICE. 

(a) DEFINITION OF ENVIRONMENTAL JUSTICE.—For purposes of 

Executive Order 12898, environmental justice is the fair treatment 

and meaningful involvement of all people regardless of race, color, 

national origin, educational level, or income with respect to the development, implementation, and enforcement of environmental 

laws, regulations, and policies. Environmental justice seeks to ensure that minority and low-income communities have adequate access to public information relating to human health and environmental planning, regulations, and enforcement. Environmental justice ensures that no population, especially the elderly and children, 

are forced to shoulder a disproportionate burden of the negative 

human health and environmental impacts of pollution or other environmental hazard. 

(b) IDENTIFICATION AND PRIORITIZATION OF ENVIRONMENTAL JUSTICE COMMUNITIES.—For purposes of Executive Order 12898, criteria for defining an environmental justice community shall include 

demographic characteristics, such as percentages of minority and 

low-income residents within an area, as well as— 

(1) health vulnerabilities, such as cancer mortality and incidence rate, infant mortality, low birth weight, asthma, and 

childhood lead poisoning; and 

(2) environmental conditions, such as facility density and 

proximity to Corrective Action/Superfund Sites, Enforcement 

105 

Data (percent and number of uninspected facilities, percent 

and number of unaddressed violations, average and total penalty and air nonattainment status), emissions, attainment status, indoor air issues, 305b stream data, fish advisories, beach 

closings, and truck traffic. 

(c) ESTABLISHMENT OF OFFICES OF ENVIRONMENTAL JUSTICE.— 

For purposes of Executive Order 12898, each of the following shall 

establish an Office of Environmental Justice: 

(1) Department of Health and Human Services. 

(2) Department of Housing and Urban Development. 

(3) Department of Defense. 

(4) Department of Labor. 

(5) Department of Agriculture. 

(6) Department of Transportation. 

(7) Department of Justice. 

(8) Department of the Interior. 

(9) Department of Commerce. 

(10) Department of Energy. 

(11) Environmental Protection Agency. 

(12) Office of Management and Budget. 

(13) Office of Science and Technology Policy. 

(14) Office of the Deputy Assistant to the President for Environmental Policy. 

(15) Office of the Assistant to the President for Domestic Policy. 

(16) National Economic Council. 

(17) Council of Economic Advisers. 

(18) Such other Government officials as the President may 

designate. 

(d) INTEGRATION OF ENVIRONMENTAL JUSTICE POLICIES IN AGENCY ACTIONS.—For purposes of the environmental justice strategies 

developed by agencies under Executive Order 12898, each agency 

shall integrate the strategy into the operation and mission of the 

agency and explicitly address compliance with this Act, including 

in the following activities: 

(1) Future rulemaking activities. 

(2) The development of any future guidance, environmental 

reviews (including NEPA, CAA, Federal Land Policy Act), regulation, or procedures for Federal agency programs, policies, or 

activities that affect human health or the environment. 

(e) INTERAGENCY FEDERAL WORKING GROUP COORDINATION AND

GUIDANCE.—The interagency Federal Working Group on Environmental Justice (in this section referred to as the ‘‘Working Group’’) 

shall— 

(1) coordinate an integrated environmental justice training 

plan for the Federal agencies and offices listed in subsection 

(c); 

(2) formalize public participation efforts; 

(3) survey the Federal agencies and offices to determine 

what is effective and how to best facilitate outreach without 

duplicating efforts; 

(4) develop a strategy for allocating responsibilities and ensuring participation, even when faced with competing agency 

priorities; and 

106 

(5) coordinate plans to communicate research results so reporting and outreach activities produce more useful and timely 

information. 

(f) AGENCY PUBLIC PARTICIPATION EFFORTS.— (1) OUTREACH EFFORTS.—Each Federal agency listed in subsection (c) shall carry out and report outreach activities to the 

Working Group, including the following: 

(A) Respond directly to inquiries from the public and 

other stakeholders. 

(B) Maintain websites and listservers. 

(C) Produce and distribute hardcopy documents and 

multimedia products. 

(D) Conduct or sponsor briefings, lectures, and press conferences. 

(E) Testify before Congress or other government bodies. 

(F) Finance scholarships, fellowships, and internships. 

(G) Support museum exhibits and other public displays. 

(H) Sponsor, participate, or otherwise contribute to 

meetings attended by stakeholders. 

(I) Provide scientifically-sound content for K–12 education activities; and 

(J) fund outreach efforts managed outside the Federal 

Government. 

(2) STAKEHOLDERS.—To ensure their active public participation and to provide input early in environmental decision-making, Federal agencies along with the Working Group shall develop ways to enhance partnerships and coordination with 

stakeholders, including affected communities, Federal, Tribal, 

State, and local governments, environmental organizations, 

nonprofit organizations, academic institutions (including Historically Black Colleges and Universities (HBCUs), Hispanic 

Serving Institutions (HSIs), and Tribal Colleges), and business 

and industry. 

(g) COMMUNITY TECHNOLOGY CENTERS.— 

(1) IN GENERAL.—Federal agencies shall fund community 

technology centers to assist with technical assistance issues in 

the environmental justice area. 

(2) DESCRIPTION.—In this subsection, the term ‘‘community 

technology center’’ (CTC) refers to programs with the goal of 

providing at least 10 hours of open access a week for anyone 

in a community, especially youth and adults in low-income 

urban and rural communities, for purposes of providing technical assistance to communities experiencing issues of environmental hazards. 

(3) LOCATION.—A community technology center may be located in places such as libraries, community centers, schools, 

churches, social service agencies, low-income residential housing complexes, and Minority Academic Institutions (such as 

Historically Black Colleges and Universities, Hispanic Serving 

Institutions, and Tribal Colleges). 

(4) ACTIVITIES OF COMMUNITY TECHNOLOGY CENTER.—A community technology center funded under this section shall— 

(A) assist community members in becoming active participants in cleanup and environmental development activities; 

107 

(B) provide independent and credible technical assistance to communities affected by hazardous waste contamination; 

(C) review and interpret technical documents and other 

materials; 

(D) sponsor workshops, short courses, and other learning 

experiences to explain basic science and environmental 

policy; 

(E) inform community members about existing technical 

assistance materials, such as publications, videos, and web 

sites; 

(F) offer training to community leaders in facilitation 

and conflict resolution among stakeholders; and 

(G) create technical assistance materials tailored to the 

identified needs of a community. 

30. AN AMENDMENT TO BE OFFERED BY REPRESENTATIVE CASTLE

OF DELAWARE, OR HIS DESIGNEE, DEBATABLE FOR 10 MINUTES

In title III, strike section 320, and make the necessary conforming changes in the table of contents. 

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