IB 

Union Calendar No. 42

108TH CONGRESS 

1ST SESSION H. R. 1644

[Report No. 108–65, Part I] 

To enhance energy conservation and research and development, to provide 

for security and diversity in the energy supply for the American people, 

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 7, 2003

Mr. BARTON of Texas introduced the following bill; which was referred to the 

Committee on Energy and Commerce, and in addition to the Committees 

on Science, Resources, Education and the Workforce, and Transportation 

and Infrastructure, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

APRIL 8, 2003 

Reported from the Committee on Energy and Commerce with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

APRIL 8, 2003

Referred to the Committee on the Judiciary for a period ending not later than 

April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 

1(k), rule X 

APRIL 8, 2003

Referral to the Committees on Science, Resources, Education and the Workforce, and Transportation and Infrastructure extended for a period ending not later than April 9, 2003

APRIL 9, 2003

Referred to the Committee on Government Reform for a period ending not 

later than April 9, 2003, for consideration of such provisions of the bill 

and amendment as fall within the jurisdiction of that committee pursuant 

to clause 1(h), rule X 
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APRIL 9, 2003

The Committees on Science, Resources, Education and the Workforce, Transportation and Infrastructure, the Judiciary, and Government Reform discharged; referred to the Committee of the Whole House on the State of 

the Union and ordered to be printed 

[For text of introduced bill, see copy of bill as introduced on April 7, 2003] 

A BILL

To enhance energy conservation and research and development, to provide for security and diversity in the energy 

supply for the American people, and for other purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘En5 ergy Policy Act of 2003’’. 

6 (b) TABLE OF CONTENTS.—The table of contents for 

7 this Act is as follows:

Sec. 1. Short title; table of contents. 

TITLE I—ENERGY CONSERVATION 

Subtitle A—Federal Leadership in Energy Conservation 

Sec. 1001. Energy and water saving measures in congressional buildings. 

Sec. 1002. Energy management requirements. 

Sec. 1003. Energy use measurement and accountability. 

Sec. 1004. Federal building performance standards. 

Sec. 1005. Procurement of energy efficient products. 

Sec. 1006. Energy savings performance contracts. 

Sec. 1007. Voluntary commitments to reduce industrial energy intensity. 

Sec. 1008. Federal agency participation in demand reduction programs. 

Sec. 1009. Advanced Building Efficiency Testbed. 

Sec. 1010. Increased use of recovered mineral component in federally funded 

projects involving procurement of cement or concrete. 

Subtitle B—Energy Assistance and State Programs 

Sec. 1021. LIHEAP and weatherization assistance. 
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Sec. 1022. State energy programs. 

Sec. 1023. Energy efficient appliance rebate programs. 

Sec. 1024. Energy efficient public buildings. 

Sec. 1025. Low income community energy efficiency pilot program. 

Subtitle C—Energy Efficient Products 

Sec. 1041. Energy Star program. 

Sec. 1042. Consumer education on energy efficiency benefits of air conditioning, 

heating, and ventilation maintenance. 

Sec. 1043. Additional definitions. 

Sec. 1044. Additional test procedures. 

Sec. 1045. Energy conservation standards for additional consumer and commercial products. 

Sec. 1046. Energy labeling. 

Sec. 1047. Study of energy efficiency standards. 

TITLE II—OIL AND GAS 

Subtitle A—Alaska Natural Gas Pipeline 

Sec. 2001. Short title. 

Sec. 2002. Findings and purposes. 

Sec. 2003. Definitions. 

Sec. 2004. Issuance of certificate of public convenience and necessity. 

Sec. 2005. Environmental reviews. 

Sec. 2006. Pipeline expansion. 

Sec. 2007. Federal Coordinator. 

Sec. 2008. Judicial review. 

Sec. 2009. State jurisdiction over in-State delivery of natural gas. 

Sec. 2010. Study of alternative means of construction. 

Sec. 2011. Clarification of ANGTA status and authorities. 

Sec. 2012. Sense of Congress. 

Sec. 2013. Participation of small business concerns. 

Sec. 2014. Alaska pipeline construction training program. 

Subtitle B—Strategic Petroleum Reserve 

Sec. 2101. Full capacity of Strategic Petroleum Reserve. 

Sec. 2102. Strategic Petroleum Reserve expansion. 

Sec. 2103. Permanent authority to operate the Strategic Petroleum Reserve and 

other energy programs. 

Subtitle C—Hydraulic Fracturing 

Sec. 2201. Hydraulic fracturing. 

Subtitle D—Unproven Oil and Natural Gas Reserves Recovery Program 

Sec. 2301. Program. 

Sec. 2302. Eligible reservoirs. 

Sec. 2303. Focus areas. 

Sec. 2304. Limitation on location of activities. 

Sec. 2305. Program administration. 

Sec. 2306. Advisory Committee. 

Sec. 2307. Limits on participation. 

Sec. 2308. Payments to Federal Government. 

Sec. 2309. Authorization of appropriations. 
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Sec. 2310. Public availability of project results and methodologies. 

Sec. 2311. Sunset. 

Sec. 2312. Definitions. 

Subtitle E—Miscellaneous 

Sec. 2401. Appeals relating to pipeline construction projects. 

Sec. 2402. Natural gas market data transparency. 

Sec. 2403. Oil and gas exploration and production defined. 

TITLE III—HYDROELECTRIC RELICENSING 

Subtitle A—Alternative Conditions 

Sec. 3001. Alternative conditions and fishways. 

Subtitle B—Additional Hydropower 

Sec. 3201. Hydroelectric production incentives. 

Sec. 3202. Hydroelectric efficiency improvement. 

Sec. 3203. Small hydroelectric power projects. 

Sec. 3204. Increased hydroelectric generation at existing Federal facilities. 

TITLE IV—NUCLEAR MATTERS 

Subtitle A—Price-Anderson Act Amendments 

Sec. 4001. Short title. 

Sec. 4002. Extension of indemnification authority. 

Sec. 4003. Maximum assessment. 

Sec. 4004. Department of Energy liability limit. 

Sec. 4005. Incidents outside the United States. 

Sec. 4006. Reports. 

Sec. 4007. Inflation adjustment. 

Sec. 4008. Price-Anderson treatment of modular reactors. 

Sec. 4009. Applicability. 

Sec. 4010. Prohibition on assumption by United States Government of liability 

for certain foreign accidents. 

Sec. 4011. Secure transfer of nuclear materials. 

Sec. 4012. Nuclear facility threats. 

Sec. 4013. Unreasonable risk consultation. 

Sec. 4014. Financial accountability. 

Sec. 4015. Civil penalties. 

Subtitle B—Miscellaneous Matters 

Sec. 4021. Licenses. 

Sec. 4022. Nuclear Regulatory Commission meetings. 

Sec. 4023. NRC training program. 

Sec. 4024. Cost recovery from Government agencies. 

Sec. 4025. Elimination of pension offset. 

Sec. 4026. Carrying of firearms by licensee employees. 

Sec. 4027. Unauthorized introduction of dangerous weapons. 

Sec. 4028. Sabotage of nuclear facilities or fuel. 

Sec. 4029. Cooperative research and development and special demonstration 

projects for the uranium mining industry. 

Sec. 4030. Uranium sales. 

Sec. 4031. Medical isotope production. 
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Sec. 4032. Highly enriched uranium diversion threat report. 

Sec. 4033. Whistleblower protection. 

TITLE V—VEHICLES AND FUELS 

Subtitle A—Energy Policy Act Amendments 

Sec. 5011. Credit for substantial contribution toward noncovered fleets. 

Sec. 5012. Credit for alternative fuel infrastructure. 

Sec. 5013. Alternative fueled vehicle report. 

Sec. 5014. Allocation of incremental costs. 

Subtitle B—FreedomCAR and Hydrogen Fuel Program 

Sec. 5021. Short title. 

Sec. 5022. Findings, purpose, and definitions. 

Sec. 5023. Plan; report. 

Sec. 5024. Public-private partnership. 

Sec. 5025. Deployment. 

Sec. 5026. Assessment and transfer. 

Sec. 5027. Interagency task force. 

Sec. 5028. Advisory Committee. 

Sec. 5029. Authorization of appropriations. 

Sec. 5030. Fuel cell program at National Parks. 

Sec. 5030A. Advanced power system technology incentive program. 

Subtitle C—Clean School Buses 

Sec. 5031. Establishment of pilot program. 

Sec. 5032. Fuel cell bus development and demonstration program. 

Sec. 5033. Authorization of appropriations. 

Subtitle D—Advanced Vehicles 

Sec. 5041. Definitions. 

Sec. 5042. Pilot program. 

Sec. 5043. Reports to Congress. 

Sec. 5044. Authorization of appropriations. 

Subtitle E—Hydrogen Fuel Cell Heavy-Duty Vehicles 

Sec. 5051. Definition. 

Sec. 5052. Findings. 

Sec. 5053. Hydrogen fuel cell buses. 

Sec. 5054. Authorization of appropriations. 

Subtitle F—Miscellaneous 

Sec. 5061. Railroad efficiency. 

Sec. 5062. Mobile emission reductions trading and crediting. 

Sec. 5063. Idle reduction technologies. 

Sec. 5064. Study of aviation fuel conservation and emissions. 

Sec. 5065. Diesel fueled vehicles. 

Sec. 5066. Hybrid vehicles. 

Sec. 5067. Waivers of alternative fueled vehicle fueling requirement. 

TITLE VI—DOE PROGRAMS 

Sec. 6001. Purposes. 
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Sec. 6002. Definitions. 

Subtitle A—Energy Efficiency 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6011. Energy efficiency. 

PART 2—LIGHTING SYSTEMS

Sec. 6021. Next Generation Lighting Initiative. 

PART 3—VEHICLES

Sec. 6031. Definitions. 

Sec. 6032. Establishment of secondary electric vehicle battery use program. 

Subtitle B—Distributed Energy and Electric Energy Systems 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6201. Distributed energy and electric energy systems. 

PART 2—DISTRIBUTED POWER

Sec. 6221. Strategy. 

Sec. 6222. High power density industry program. 

Sec. 6223. Micro-cogeneration energy technology. 

PART 3—TRANSMISSION SYSTEMS

Sec. 6231. Transmission infrastructure systems. 

Subtitle C—Renewable Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6301. Renewable energy. 

PART 2—BIOENERGY

Sec. 6321. Bioenergy programs. 

Subtitle D—Nuclear Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6411. Nuclear energy. 

PART 2—NUCLEAR ENERGY RESEARCH PROGRAMS

Sec. 6421. Nuclear energy research programs. 

PART 3—ADVANCED FUEL RECYCLING

Sec. 6431. Advanced fuel recycling program. 

PART 4—UNIVERSITY PROGRAMS

Sec. 6441. University nuclear science and engineering support. 
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Subtitle E—Fossil Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6501. Fossil energy. 

PART 2—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER

PETROLEUM RESOURCES

Sec. 6521. Program authority. 

Sec. 6522. Ultra-deepwater program. 

Sec. 6523. Unconventional natural gas and other petroleum resources program. 

Sec. 6524. Additional requirements for awards. 

Sec. 6525. Advisory committees. 

Sec. 6526. Limits on participation. 

Sec. 6527. Fund. 

Sec. 6528. Sunset. 

Sec. 6529. Definitions. 

Subtitle F—Miscellaneous 

Sec. 6601. Waste reduction and use of alternatives. 

Sec. 6602. Coal gasification. 

Sec. 6603. Petroleum coke gasification. 

Sec. 6604. Other biopower and bioenergy. 

Sec. 6605. Technology transfer. 

Sec. 6606. Limitation on legal fee reimbursement. 

Sec. 6607. Complex well technology testing facility. 

Sec. 6608. Total integrated thermal systems. 

Sec. 6609. Oil bypass filtration technology. 

TITLE VII—ELECTRICITY 

Subtitle A—Transmission Capacity 

Sec. 7011. Transmission infrastructure improvement rulemaking. 

Sec. 7012. Siting of interstate electrical transmission facilities. 

Subtitle B—Transmission Operation 

Sec. 7021. Open access transmission by certain utilities. 

Sec. 7022. Regional transmission organizations. 

Sec. 7023. Native load. 

Subtitle C—Reliability 

Sec. 7031. Electric reliability standards. 

Subtitle D—PUHCA Amendments 

Sec. 7041. Short title. 

Sec. 7042. Definitions. 

Sec. 7043. Repeal of the Public Utility Holding Company Act of 1935. 

Sec. 7044. Federal access to books and records. 

Sec. 7045. State access to books and records. 

Sec. 7046. Exemption authority. 

Sec. 7047. Affiliate transactions. 

Sec. 7048. Applicability. 

Sec. 7049. Effect on other regulations. 
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Sec. 7050. Enforcement. 

Sec. 7051. Savings provisions. 

Sec. 7052. Implementation. 

Sec. 7053. Transfer of resources. 

Sec. 7054. Effective date. 

Sec. 7055. Authorization of appropriations. 

Sec. 7056. Conforming amendments to the Federal Power Act. 

Subtitle E—PURPA Amendments 

Sec. 7061. Real-time pricing and time-of-use metering standards. 

Sec. 7062. Cogeneration and small power production purchase and sale requirements. 

Sec. 7063. Smart metering. 

Subtitle F—Renewable Energy 

Sec. 7071. Net metering. 

Sec. 7072. Renewable energy production incentive. 

Sec. 7073. Renewable energy on Federal lands. 

Sec. 7074. Assessment of renewable energy resources. 

Subtitle G—Market Transparency, Round Trip Trading Prohibition, and 

Enforcement 

Sec. 7081. Market transparency rules. 

Sec. 7082. Prohibition on round trip trading. 

Sec. 7083. Conforming changes. 

Sec. 7084. Enforcement. 

Subtitle H—Consumer Protections 

Sec. 7091. Refund effective date. 

Sec. 7092. Jurisdiction over interstate sales. 

Sec. 7093. Consumer privacy. 

Sec. 7094. Unfair trade practices. 

Subtitle I—Merger Review Reform and Accountability 

Sec. 7101. Merger review reform and accountability. 

Subtitle J—Study of Economic Dispatch 

Sec. 7111. Study on the benefits of economic dispatch. 

TITLE VIII—COAL 

Sec. 8001. Authorization of appropriations. 

Sec. 8002. Project criteria. 

Sec. 8003. Report. 

Sec. 8004. Clean coal centers of excellence. 

TITLE IX—MOTOR FUELS 

Subtitle A—General Provisions 

Sec. 9101. Renewable content of motor vehicle fuel. 

Sec. 9102. Fuels safe harbor. 

Sec. 9103. Findings and MTBE transition assistance. 
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Sec. 9104. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 9105. Analyses of motor vehicle fuel changes. 

Sec. 9106. Data collection. 

Sec. 9107. Fuel system requirements harmonization study. 

Subtitle B—MTBE Cleanup 

Sec. 9201. Funding for MTBE contamination. 

TITLE X—AUTOMOBILE EFFICIENCY 

Sec. 10001. Authorization of appropriations for implementation and enforcement 

of fuel economy standards. 

Sec. 10002. Study of feasibility and effects of reducing use of fuel for automobiles. 

TITLE XI—PREVENTING THE MISUSE OF NUCLEAR MATERIALS 

AND TECHNOLOGY 

Sec. 11001. Preventing the misuse of nuclear materials and technology. 

TITLE XII—ADDITIONAL PROVISIONS 

Sec. 12001. Transmission technologies.

1 TITLE I—ENERGY 

2 CONSERVATION 

3 Subtitle A—Federal Leadership in 

4 Energy Conservation 

5 SEC. 1001. ENERGY AND WATER SAVING MEASURES IN CON6 GRESSIONAL BUILDINGS. 

7 (a) IN GENERAL.—Part 3 of title V of the National 

8 Energy Conservation Policy Act is amended by adding at 

9 the end: 

10 ‘‘SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN 

11 CONGRESSIONAL BUILDINGS. 

12 ‘‘(a) IN GENERAL.—The Architect of the Capitol— 

13 ‘‘(1) shall develop, update, and implement a cost14 effective energy conservation and management plan 

15 (referred to in this section as the ‘plan’) for all facili-
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1 ties administered by the Congress (referred to in this 

2 section as ‘congressional buildings’) to meet the en3 ergy performance requirements for Federal buildings 

4 established under section 543(a)(1); and 

5 ‘‘(2) shall submit the plan to Congress, not later 

6 than 180 days after the date of enactment of this sec7 tion. 

8 ‘‘(b) PLAN REQUIREMENTS.—The plan shall include— 

9 ‘‘(1) a description of the life cycle cost analysis 

10 used to determine the cost-effectiveness of proposed en11 ergy efficiency projects; 

12 ‘‘(2) a schedule of energy surveys to ensure com13 plete surveys of all congressional buildings every 5 

14 years to determine the cost and payback period of en15 ergy and water conservation measures; 

16 ‘‘(3) a strategy for installation of life cycle cost17 effective energy and water conservation measures; 

18 ‘‘(4) the results of a study of the costs and bene19 fits of installation of submetering in congressional 

20 buildings; and 

21 ‘‘(5) information packages and ‘how-to’ guides 

22 for each Member and employing authority of Congress 

23 that detail simple, cost-effective methods to save en24 ergy and taxpayer dollars in the workplace. 
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1 ‘‘(c) ANNUAL REPORT.—The Architect shall submit to 

2 Congress annually a report on congressional energy man3 agement and conservation programs required under this 

4 section that describes in detail— 

5 ‘‘(1) energy expenditures and savings estimates 

6 for each facility; 

7 ‘‘(2) energy management and conservation 

8 projects; and

9 ‘‘(3) future priorities to ensure compliance with 

10 this section.’’. 

11 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

12 contents of the National Energy Conservation Policy Act 

13 is amended by adding at the end of the items relating to 

14 part 3 of title V the following new item:

‘‘Sec. 552. Energy and water savings measures in congressional buildings.’’.

15 (c) REPEAL.—Section 310 of the Legislative Branch 

16 Appropriations Act, 1999 (40 U.S.C. 166i), is repealed. 

17 (d) ENERGY INFRASTRUCTURE.—The Architect of the 

18 Capitol, building on the Master Plan Study completed in 

19 July 2000, shall commission a study to evaluate the energy 

20 infrastructure of the Capital Complex to determine how the 

21 infrastructure could be augmented to become more energy 

22 efficient, using unconventional and renewable energy re23 sources, in a way that would enable the Complex to have 

24 reliable utility service in the event of power fluctuations, 

25 shortages, or outages. 
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1 (e) AUTHORIZATION.—There are authorized to be ap2 propriated to the Architect of the Capitol to carry out sub3 section (d), not more than $2,000,000 for fiscal years after 

4 the enactment of this Act. 

5 SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS. 

6 (a) ENERGY REDUCTION GOALS.—

7 (1) AMENDMENT.—Section 543(a)(1) of the Na8 tional Energy Conservation Policy Act (42 U.S.C. 

9 8253(a)(1)) is amended by striking ‘‘its Federal 

10 buildings so that’’ and all that follows through the 

11 end and inserting ‘‘the Federal buildings of the agen12 cy (including each industrial or laboratory facility) 

13 so that the energy consumption per gross square foot 

14 of the Federal buildings of the agency in fiscal years 

15 2004 through 2013 is reduced, as compared with the 

16 energy consumption per gross square foot of the Fed17 eral buildings of the agency in fiscal year 2001, by 

18 the percentage specified in the following table:

‘‘Fiscal Year Percentage reduction 

2004 ............................................................................................ 2

2005 ............................................................................................ 4

2006 ............................................................................................ 6

2007 ............................................................................................ 8

2008 ............................................................................................ 10

2009 ............................................................................................ 12

2010 ............................................................................................ 14

2011 ............................................................................................ 16

2012 ............................................................................................ 18

2013 ............................................................................................ 20.’’.

19 (2) REPORTING BASELINE.—The energy reduc20 tion goals and baseline established in paragraph (1) 
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1 of section 543(a) of the National Energy Conservation 

2 Policy Act, as amended by paragraph (1) of this sub3 section, supersede all previous goals and baselines 

4 under such paragraph, and related reporting require5 ments. 

6 (b) REVIEW AND REVISION OF ENERGY PERFORMANCE

7 REQUIREMENT.—Section 543(a) of the National Energy 

8 Conservation Policy Act (42 U.S.C. 8253(a)) is further 

9 amended by adding at the end the following: 

10 ‘‘(3) Not later than December 31, 2012, the Secretary 

11 shall review the results of the implementation of the energy 

12 performance requirement established under paragraph (1) 

13 and submit to Congress recommendations concerning en14 ergy performance requirements for fiscal years 2014 

15 through 2023.’’. 

16 (c) EXCLUSIONS.—Section 543(c)(1) of the National 

17 Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is 

18 amended by striking ‘‘An agency may exclude’’ and all that 

19 follows through the end and inserting ‘‘(A) An agency may 

20 exclude, from the energy performance requirement for a fis21 cal year established under subsection (a) and the energy 

22 management requirement established under subsection (b), 

23 any Federal building or collection of Federal buildings, if 

24 the head of the agency finds that—
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1 ‘‘(i) compliance with those requirements would 

2 be impracticable; 

3 ‘‘(ii) the agency has completed and submitted all 

4 federally required energy management reports; 

5 ‘‘(iii) the agency has achieved compliance with 

6 the energy efficiency requirements of this Act, the En7 ergy Policy Act of 1992, Executive Orders, and other 

8 Federal law; and 

9 ‘‘(iv) the agency has implemented all practicable, 

10 life cycle cost-effective projects with respect to the Fed11 eral building or collection of Federal buildings to be 

12 excluded. 

13 ‘‘(B) A finding of impracticability under subpara14 graph (A)(i) shall be based on— 

15 ‘‘(i) the energy intensiveness of activities carried 

16 out in the Federal building or collection of Federal 

17 buildings; or 

18 ‘‘(ii) the fact that the Federal building or collec19 tion of Federal buildings is used in the performance 

20 of a national security function.’’. 

21 (d) REVIEW BY SECRETARY.—Section 543(c)(2) of the 

22 National Energy Conservation Policy Act (42 U.S.C. 

23 8253(c)(2)) is amended— 

24 (1) by striking ‘‘impracticability standards’’ and 

25 inserting ‘‘standards for exclusion’’; and 
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1 (2) by striking ‘‘a finding of impracticability’’ 

2 and inserting ‘‘the exclusion’’. 

3 (e) CRITERIA.—Section 543(c) of the National Energy 

4 Conservation Policy Act (42 U.S.C. 8253(c)) is further 

5 amended by adding at the end the following: 

6 ‘‘(3) Not later than 180 days after the date of enact7 ment of this paragraph, the Secretary shall issue guidelines 

8 that establish criteria for exclusions under paragraph (1).’’. 

9 (f) RETENTION OF ENERGY SAVINGS.—Section 546 of 

10 the National Energy Conservation Policy Act (42 U.S.C. 

11 8256) is amended by adding at the end the following new 

12 subsection: 

13 ‘‘(e) RETENTION OF ENERGY SAVINGS.—An agency 

14 may retain any funds appropriated to that agency for en15 ergy expenditures, at buildings subject to the requirements 

16 of section 543(a) and (b), that are not made because of en17 ergy savings. Except as otherwise provided by law, such 

18 funds may be used only for energy efficiency or unconven19 tional and renewable energy resources projects.’’. 

20 (g) REPORTS.—Section 548(b) of the National Energy 

21 Conservation Policy Act (42 U.S.C. 8258(b)) is amended—

22 (1) in the subsection heading, by inserting ‘‘THE

23 PRESIDENT AND’’ before ‘‘CONGRESS’’; and 

24 (2) by inserting ‘‘President and’’ before ‘‘Con25 gress’’. 
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1 (h) CONFORMING AMENDMENT.—Section 550(d) of the 

2 National Energy Conservation Policy Act (42 U.S.C. 

3 8258b(d)) is amended in the second sentence by striking 

4 ‘‘the 20 percent reduction goal established under section 

5 543(a) of the National Energy Conservation Policy Act (42 

6 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy reduc7 tion goals established under section 543(a).’’.

8 SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNT9 ABILITY. 

10 Section 543 of the National Energy Conservation Pol11 icy Act (42 U.S.C. 8253) is further amended by adding at 

12 the end the following: 

13 ‘‘(e) METERING OF ENERGY USE.—

14 ‘‘(1) DEADLINE.—By October 1, 2010, in accord15 ance with guidelines established by the Secretary 

16 under paragraph (2), all Federal buildings shall, for 

17 the purposes of efficient use of energy and reduction 

18 in the cost of electricity used in such buildings, be me19 tered or submetered. Each agency shall use, to the 

20 maximum extent practicable, advanced meters or ad21 vanced metering devices that provide data at least 

22 daily and that measure at least hourly consumption 

23 of electricity in the Federal buildings of the agency. 

24 Such data shall be incorporated into existing Federal 
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1 energy tracking systems and made available to Fed2 eral facility energy managers. 

3 ‘‘(2) GUIDELINES.—

4 ‘‘(A) IN GENERAL.—Not later than 180 

5 days after the date of enactment of this sub6 section, the Secretary, in consultation with the 

7 Department of Defense, the General Services Ad8 ministration, representatives from the metering 

9 industry, utility industry, energy services indus10 try, energy efficiency industry, national labora11 tories, universities, and Federal facility energy 

12 managers, shall establish guidelines for agencies 

13 to carry out paragraph (1). 

14 ‘‘(B) REQUIREMENTS FOR GUIDELINES.—

15 The guidelines shall—

16 ‘‘(i) take into consideration—

17 ‘‘(I) the cost of metering and sub18 metering and the reduced cost of oper19 ation and maintenance expected to re20 sult from metering and submetering; 

21 ‘‘(II) the extent to which metering 

22 and submetering are expected to result 

23 in increased potential for energy man24 agement, increased potential for energy 

25 savings and energy efficiency improve-
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1 ment, and cost and energy savings due 

2 to utility contract aggregation; and 

3 ‘‘(III) the measurement and 

4 verification protocols of the Depart5 ment of Energy; 

6 ‘‘(ii) include recommendations con7 cerning the amount of funds and the num8 ber of trained personnel necessary to gather 

9 and use the metering information to track 

10 and reduce energy use; 

11 ‘‘(iii) establish priorities for types and 

12 locations of buildings to be metered and 

13 submetered based on cost-effectiveness and a 

14 schedule of one or more dates, not later than 

15 1 year after the date of issuance of the 

16 guidelines, on which the requirements speci17 fied in paragraph (1) shall take effect; and 

18 ‘‘(iv) establish exclusions from the re19 quirements specified in paragraph (1) based 

20 on the de minimis quantity of energy use of 

21 a Federal building, industrial process, or 

22 structure. 

23 ‘‘(3) PLAN.—No later than 6 months after the 

24 date guidelines are established under paragraph (2), 

25 in a report submitted by the agency under section 
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1 548(a), each agency shall submit to the Secretary a 

2 plan describing how the agency will implement the 

3 requirements of paragraph (1), including (A) how the 

4 agency will designate personnel primarily responsible 

5 for achieving the requirements and (B) demonstration 

6 by the agency, complete with documentation, of any 

7 finding that advanced meters or advanced metering 

8 devices, as defined in paragraph (1), are not prac9 ticable.’’.

10 SEC. 1004. FEDERAL BUILDING PERFORMANCE STANDARDS. 

11 Section 305(a) of the Energy Conservation and Pro12 duction Act (42 U.S.C. 6834(a)) is amended— 

13 (1) in paragraph (2)(A), by striking ‘‘CABO 

14 Model Energy Code, 1992’’ and inserting ‘‘the 2000 

15 International Energy Conservation Code’’; and 

16 (2) by adding at the end the following: 

17 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI18 CIENCY PERFORMANCE STANDARDS.—

19 ‘‘(A) IN GENERAL.—Not later than 1 year after 

20 the date of enactment of this paragraph, the Secretary 

21 of Energy shall establish, by rule, revised Federal 

22 building energy efficiency performance standards that 

23 require that, if cost-effective, for new Federal build24 ings—
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1 ‘‘(i) such buildings be designed so as to 

2 achieve energy consumption levels at least 30 

3 percent below those of the most recent ASHRAE 

4 Standard 90.1 or the most recent version of the 

5 International Energy Conservation Code, as ap6 propriate; and 

7 ‘‘(ii) sustainable design principles are ap8 plied to the siting, design, and construction of 

9 all new and replacement buildings. 

10 ‘‘(B) ADDITIONAL REVISIONS.—Not later than 1 

11 year after the date of approval of amendments to 

12 ASHRAE Standard 90.1 or the 2000 International 

13 Energy Conservation Code, the Secretary of Energy 

14 shall determine, based on the cost-effectiveness of the 

15 requirements under the amendments, whether the re16 vised standards established under this paragraph 

17 should be updated to reflect the amendments. 

18 ‘‘(C) STATEMENT ON COMPLIANCE OF NEW

19 BUILDINGS.—In the budget request of the Federal 

20 agency for each fiscal year and each report submitted 

21 by the Federal agency under section 548(a) of the Na22 tional Energy Conservation Policy Act (42 U.S.C. 

23 8258(a)), the head of each Federal agency shall in24 clude— 
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1 ‘‘(i) a list of all new Federal buildings 

2 owned, operated, or controlled by the Federal 

3 agency; and 

4 ‘‘(ii) a statement concerning whether the 

5 Federal buildings meet or exceed the revised 

6 standards established under this paragraph.’’.

7 SEC. 1005. PROCUREMENT OF ENERGY EFFICIENT PROD8 UCTS. 

9 (a) REQUIREMENTS.—Part 3 of title V of the National 

10 Energy Conservation Policy Act is amended by adding at 

11 the end the following: 

12 ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT 

13 PRODUCTS. 

14 ‘‘(a) DEFINITIONS.—In this section: 

15 ‘‘(1) ENERGY STAR PRODUCT.—The term ‘En16 ergy Star product’ means a product that is rated for 

17 energy efficiency under an Energy Star program. 

18 ‘‘(2) ENERGY STAR PROGRAM.—The term ‘En19 ergy Star program’ means the program established by 

20 section 324A of the Energy Policy and Conservation 

21 Act. 

22 ‘‘(3) EXECUTIVE AGENCY.—The term ‘executive 

23 agency’ has the meaning given the term in section 4 

24 of the Office of Federal Procurement Policy Act (41 

25 U.S.C. 403). 
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1 ‘‘(4) FEMP DESIGNATED PRODUCT.—The term 

2 ‘FEMP designated product’ means a product that is 

3 designated under the Federal Energy Management 

4 Program of the Department of Energy as being 

5 among the highest 25 percent of equivalent products 

6 for energy efficiency. 

7 ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD8 UCTS.— 

9 ‘‘(1) REQUIREMENT.—To meet the requirements 

10 of an executive agency for an energy consuming prod11 uct, the head of the executive agency shall, except as 

12 provided in paragraph (2), procure—

13 ‘‘(A) an Energy Star product; or 

14 ‘‘(B) a FEMP designated product. 

15 ‘‘(2) EXCEPTIONS.—The head of an executive 

16 agency is not required to procure an Energy Star 

17 product or FEMP designated product under para18 graph (1) if the head of the executive agency finds in 

19 writing that— 

20 ‘‘(A) an Energy Star product or FEMP des21 ignated product is not cost-effective over the life 

22 of the product taking energy cost savings into ac23 count; or 

24 ‘‘(B) no Energy Star product or FEMP des25 ignated product is reasonably available that 
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•HR 1644 RH 

1 meets the functional requirements of the executive 

2 agency. 

3 ‘‘(3) PROCUREMENT PLANNING.—The head of an 

4 executive agency shall incorporate into the specifica5 tions for all procurements involving energy con6 suming products and systems, including guide speci7 fications, project specifications, and construction, ren8 ovation, and services contracts that include provision 

9 of energy consuming products and systems, and into 

10 the factors for the evaluation of offers received for the 

11 procurement, criteria for energy efficiency that are 

12 consistent with the criteria used for rating Energy 

13 Star products and for rating FEMP designated prod14 ucts. 

15 ‘‘(c) LISTING OF ENERGY EFFICIENT PRODUCTS IN

16 FEDERAL CATALOGS.—Energy Star products and FEMP 

17 designated products shall be clearly identified and promi18 nently displayed in any inventory or listing of products 

19 by the General Services Administration or the Defense Lo20 gistics Agency. The General Services Administration or the 

21 Defense Logistics Agency shall supply only Energy Star 

22 products or FEMP designated products for all product cat23 egories covered by the Energy Star program or the Federal 

24 Energy Management Program, except in cases where the 

25 agency ordering a product specifies in writing that no En-
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•HR 1644 RH 

1 ergy Star product or FEMP designated product is available 

2 to meet the buyer’s functional requirements, or that no En3 ergy Star product or FEMP designated product is cost-effec4 tive for the intended application over the life of the product, 

5 taking energy cost savings into account. 

6 ‘‘(d) DESIGNATION OF ELECTRIC MOTORS.—In the 

7 case of electric motors of 1 to 500 horsepower, agencies shall 

8 select only premium efficient motors that meet a standard 

9 designated by the Secretary. The Secretary shall designate 

10 such a standard within 120 days after the date of the enact11 ment of this section, after considering the recommendations 

12 of associated electric motor manufacturers and energy effi13 ciency groups. 

14 ‘‘(e) REGULATIONS.—Not later than 180 days after the 

15 date of the enactment of this section, the Secretary shall 

16 issue guidelines to carry out this section.’’. 

17 (b) CONFORMING AMENDMENT.—The table of contents 

18 in section 101(b) of the National Energy Conservation Pol19 icy Act (42 U.S.C. 8201 note), as amended by section 

20 1001(b) of this Act, is further amended by inserting after 

21 the item relating to section 552 the following:

‘‘Sec. 553. Federal procurement of energy efficient products.’’.

22 SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

23 (a) PERMANENT EXTENSION.—Section 801(c) of the 

24 National Energy Conservation Policy Act (42 U.S.C. 

25 8287(c)) is repealed. 
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1 (b) REPLACEMENT FACILITIES.—Section 801(a) of the 

2 National Energy Conservation Policy Act (42 U.S.C. 

3 8287(a)) is amended by adding at the end the following 

4 new paragraph: 

5 ‘‘(3)(A) In the case of an energy savings contract 

6 or energy savings performance contract providing for 

7 energy savings through the construction and oper8 ation of one or more buildings or facilities to replace 

9 one or more existing buildings or facilities, benefits 

10 ancillary to the purpose of such contract under para11 graph (1) may include savings resulting from reduced 

12 costs of operation and maintenance at such replace13 ment buildings or facilities when compared with costs 

14 of operation and maintenance at the buildings or fa15 cilities being replaced, established through a method16 ology set forth in the contract. 

17 ‘‘(B) Notwithstanding paragraph (2)(B), aggre18 gate annual payments by an agency under an energy 

19 savings contract or energy savings performance con20 tract referred to in subparagraph (A) may take into 

21 account (through the procedures developed pursuant 

22 to this section) savings resulting from reduced costs of 

23 operation and maintenance as described in that sub24 paragraph.’’. 
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1 (c) ENERGY SAVINGS.—Section 804(2) of the National 

2 Energy Conservation Policy Act (42 U.S.C. 8287c(2)) is 

3 amended to read as follows: 

4 ‘‘(2) The term ‘energy savings’ means—

5 ‘‘(A) a reduction in the cost of energy or 

6 water, from a base cost established through a 

7 methodology set forth in the contract, used in an 

8 existing federally owned building or buildings or 

9 other federally owned facilities as a result of—

10 ‘‘(i) the lease or purchase of operating 

11 equipment, improvements, altered operation 

12 and maintenance, or technical services; 

13 ‘‘(ii) the increased efficient use of exist14 ing energy sources by cogeneration or heat 

15 recovery, excluding any cogeneration process 

16 for other than a federally owned building or 

17 buildings or other federally owned facilities; 

18 or 

19 ‘‘(iii) the increased efficient use of ex20 isting water sources; or 

21 ‘‘(B) in the case of a replacement building 

22 or facility described in section 801(a)(3), a re23 duction in the cost of energy, from a base cost es24 tablished through a methodology set forth in the 

25 contract, that would otherwise be utilized in one 
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1 or more existing federally owned buildings or 

2 other federally owned facilities by reason of the 

3 construction and operation of the replacement 

4 building or facility.’’. 

5 (d) ENERGY SAVINGS CONTRACT.—Section 804(3) of 

6 the National Energy Conservation Policy Act (42 U.S.C. 

7 8287c(3)) is amended to read as follows: 

8 ‘‘(3) The terms ‘energy savings contract’ and ‘en9 ergy savings performance contract’ mean a contract 

10 which provides for—

11 ‘‘(A) the performance of services for the de12 sign, acquisition, installation, testing, operation, 

13 and, where appropriate, maintenance and re14 pair, of an identified energy or water conserva15 tion measure or series of measures at one or 

16 more locations; or 

17 ‘‘(B) energy savings through the construc18 tion and operation of one or more buildings or 

19 facilities to replace one or more existing build20 ings or facilities. 

21 Such contracts shall, with respect to an agency facil22 ity that is a public building as such term is defined 

23 in section 13(1) of the Public Buildings Act of 1959 

24 (40 U.S.C. 3301), be in compliance with the pro-
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1 spectus requirements and procedures of section 7 of 

2 the Public Buildings Act of 1959 (40 U.S.C. 3307).’’. 

3 (e) ENERGY OR WATER CONSERVATION MEASURE.—

4 Section 804(4) of the National Energy Conservation Policy 

5 Act (42 U.S.C. 8287c(4)) is amended to read as follows: 

6 ‘‘(4) The term ‘energy or water conservation 

7 measure’ means—

8 ‘‘(A) an energy conservation measure, as de9 fined in section 551(4) (42 U.S.C. 8259(4)); or 

10 ‘‘(B) a water conservation measure that im11 proves water efficiency, is life cycle cost-effective, 

12 and involves water conservation, water recycling 

13 or reuse, more efficient treatment of wastewater 

14 or stormwater, improvements in operation or 

15 maintenance efficiencies, retrofit activities, or 

16 other related activities, not at a Federal hydro17 electric facility.’’. 

18 (f) REVIEW.—Within 180 days after the date of the 

19 enactment of this section, the Secretary of Energy shall 

20 complete a review of the Energy Savings Performance Con21 tract program to identify statutory, regulatory, and admin22 istrative obstacles that prevent Federal agencies from fully 

23 utilizing the program. In addition, this review shall iden24 tify all areas for increasing program flexibility and effec25 tiveness, including audit and measurement verification re-
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•HR 1644 RH 

1 quirements, accounting for energy use in determining sav2 ings, contracting requirements, and energy efficiency serv3 ices covered. The Secretary shall report these findings to the 

4 Committee on Energy and Commerce of the House of Rep5 resentatives and the Committee on Energy and Natural Re6 sources of the Senate, and shall implement identified ad7 ministrative and regulatory changes to increase program 

8 flexibility and effectiveness to the extent that such changes 

9 are consistent with statutory authority.

10 SEC. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUS11 TRIAL ENERGY INTENSITY. 

12 (a) VOLUNTARY AGREEMENTS.—The Secretary of En13 ergy shall enter into voluntary agreements with one or more 

14 persons in industrial sectors that consume significant 

15 amounts of primary energy per unit of physical output to 

16 reduce the energy intensity of their production activities. 

17 (b) GOAL.—Voluntary agreements under this section 

18 shall have a goal of reducing energy intensity by not less 

19 than 2.5 percent each year from 2004 through 2014. 

20 (c) RECOGNITION.—The Secretary of Energy, in co21 operation with the Administrator of the Environmental 

22 Protection Agency and other appropriate Federal agencies, 

23 shall develop mechanisms to recognize and publicize the 

24 achievements of participants in voluntary agreements 

25 under this section. 
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1 (d) DEFINITION.—In this section, the term ‘‘energy in2 tensity’’ means the primary energy consumed per unit of 

3 physical output in an industrial process. 

4 (e) TECHNICAL ASSISTANCE.—An entity that enters 

5 into an agreement under this section and continues to make 

6 a good faith effort to achieve the energy efficiency goals 

7 specified in the agreement shall be eligible to receive from 

8 the Secretary a grant or technical assistance as appropriate 

9 to assist in the achievement of those goals. 

10 (f) REPORT.—Not later than June 30, 2010 and June 

11 30, 2014, the Secretary shall submit to Congress a report 

12 that evaluates the success of the voluntary agreements, with 

13 independent verification of a sample of the energy savings 

14 estimates provided by participating firms. 

15 SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND 

16 REDUCTION PROGRAMS. 

17 Section 546(c) of the National Energy Conservation 

18 Policy Act (42 U.S.C. 8256(c)) is amended by adding at 

19 the end of the following new paragraph: 

20 ‘‘(6) Federal agencies are encouraged to participate in 

21 State or regional demand side reduction programs. The 

22 availability of such programs, including measures employ23 ing onsite generation, and the savings resulting from such 

24 participation, should be included in the evaluation of en25 ergy options for Federal facilities.’’. 
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1 SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED. 

2 (a) ESTABLISHMENT.—The Secretary of Energy, in 

3 consultation with the Administrator of the General Services 

4 Administration, shall establish an Advanced Building Effi5 ciency Testbed program for the development, testing, and

6 demonstration of advanced engineering systems, compo7 nents, and materials to enable innovations in building tech8 nologies. The program shall evaluate efficiency concepts for 

9 government and industry buildings, and demonstrate the 

10 ability of next generation buildings to support individual 

11 and organizational productivity and health as well as flexi12 bility and technological change to improve environmental 

13 sustainability. Such program shall complement and not du14 plicate existing national programs. 

15 (b) PARTICIPANTS.—The program established under 

16 subsection (a) shall be led by a university with the ability 

17 to combine the expertise from numerous academic fields in18 cluding, at a minimum, intelligent workplaces and ad19 vanced building systems and engineering, electrical and 

20 computer engineering, computer science, architecture, 

21 urban design, and environmental and mechanical engineer22 ing. Such university shall partner with other universities 

23 and entities who have established programs and the capa24 bility of advancing innovative building efficiency tech25 nologies. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated to the Secretary of Energy 

3 to carry out this section $6,000,000 for each of the fiscal 

4 years 2004 through 2006, to remain available until ex5 pended. For any fiscal year in which funds are expended 

6 under this section, the Secretary shall provide one-third of 

7 the total amount to the lead university described in sub8 section (b), and provide the remaining two-thirds to the 

9 other participants referred to in subsection (b) on an equal 

10 basis.

11 SEC. 1010. INCREASED USE OF RECOVERED MINERAL COM12 PONENT IN FEDERALLY FUNDED PROJECTS 

13 INVOLVING PROCUREMENT OF CEMENT OR 

14 CONCRETE. 

15 (a) AMENDMENT.—Subtitle F of the Solid Waste Dis16 posal Act (42 U.S.C. 6961 et seq.) is amended by adding 

17 at the end the following new section: 

18 ‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT IN

19 FEDERALLY FUNDED PROJECTS INVOLVING PROCURE20 MENT OF CEMENT OR CONCRETE

21 ‘‘SEC. 6005. (a) DEFINITIONS.—In this section: 

22 ‘‘(1) AGENCY HEAD.—The term ‘agency head’ 

23 means—

24 ‘‘(A) the Secretary of Transportation; and 

25 ‘‘(B) the head of each other Federal agency 

26 that on a regular basis procures, or provides 
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1 Federal funds to pay or assist in paying the cost 

2 of procuring, material for cement or concrete 

3 projects. 

4 ‘‘(2) CEMENT OR CONCRETE PROJECT.—The 

5 term ‘cement or concrete project’ means a project for 

6 the construction or maintenance of a highway or 

7 other transportation facility or a Federal, State, or 

8 local government building or other public facility 

9 that—

10 ‘‘(A) involves the procurement of cement or 

11 concrete; and 

12 ‘‘(B) is carried out in whole or in part 

13 using Federal funds. 

14 ‘‘(3) RECOVERED MINERAL COMPONENT.—The 

15 term ‘recovered mineral component’ means—

16 ‘‘(A) ground granulated blast furnace slag; 

17 ‘‘(B) coal combustion fly ash; and 

18 ‘‘(C) any other waste material or byproduct 

19 recovered or diverted from solid waste that the 

20 Administrator, in consultation with an agency 

21 head, determines should be treated as recovered 

22 mineral component under this section for use in 

23 cement or concrete projects paid for, in whole or 

24 in part, by the agency head. 

25 ‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—
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1 ‘‘(1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this section, the Adminis3 trator and each agency head shall take such actions 

4 as are necessary to implement fully all procurement 

5 requirements and incentives in effect as of the date of 

6 enactment of this section (including guidelines under 

7 section 6002) that provide for the use of cement and 

8 concrete incorporating recovered mineral component 

9 in cement or concrete projects. 

10 ‘‘(2) PRIORITY.—In carrying out paragraph (1) 

11 an agency head shall give priority to achieving great12 er use of recovered mineral component in cement or 

13 concrete projects for which recovered mineral compo14 nents historically have not been used or have been 

15 used only minimally. 

16 ‘‘(3) CONFORMANCE.—The Administrator and 

17 each agency head shall carry out this subsection in 

18 accordance with section 6002. 

19 ‘‘(c) FULL IMPLEMENTATION STUDY.—

20 ‘‘(1) IN GENERAL.—The Administrator, in co21 operation with the Secretary of Transportation and 

22 the Secretary of Energy, shall conduct a study to de23 termine the extent to which current procurement re24 quirements, when fully implemented in accordance 

25 with subsection (b), may realize energy savings and 
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1 environmental benefits attainable with substitution of 

2 recovered mineral component in cement used in ce3 ment or concrete projects. 

4 ‘‘(2) MATTERS TO BE ADDRESSED.—The study 

5 shall—

6 ‘‘(A) quantify the extent to which recovered 

7 mineral components are being substituted for 

8 Portland cement, particularly as a result of cur9 rent procurement requirements, and the energy 

10 savings and environmental benefits associated 

11 with that substitution; 

12 ‘‘(B) identify all barriers in procurement 

13 requirements to fuller realization of energy sav14 ings and environmental benefits, including bar15 riers resulting from exceptions from current law; 

16 and 

17 ‘‘(C)(i) identify potential mechanisms to 

18 achieve greater substitution of recovered mineral 

19 component in types of cement or concrete projects 

20 for which recovered mineral components histori21 cally have not been used or have been used only 

22 minimally; 

23 ‘‘(ii) evaluate the feasibility of establishing 

24 guidelines or standards for optimized substi-
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•HR 1644 RH 

1 tution rates of recovered mineral component in 

2 those cement or concrete projects; and 

3 ‘‘(iii) identify any potential environmental 

4 or economic effects that may result from greater 

5 substitution of recovered mineral component in 

6 those cement or concrete projects.

7 ‘‘(3) REPORT.—Not later than 30 months after 

8 the date of enactment of this section, the Adminis9 trator shall submit to the Committee on Appropria10 tions and Committee on Environment and Public 

11 Works of the Senate and the Committee on Appro12 priations, Committee on Energy and Commerce, and 

13 Committee on Transportation and Infrastructure of 

14 the House of Representatives a report on the study. 

15 ‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—

16 Unless the study conducted under subsection (c) identifies 

17 any effects or other problems described in subsection 

18 (c)(2)(C)(iii) that warrant further review or delay, the Ad19 ministrator and each agency head shall, within 1 year of 

20 the release of the report in accordance with subsection 

21 (c)(3), take additional actions authorized under this Act to 

22 establish procurement requirements and incentives that pro23 vide for the use of cement and concrete with increased sub24 stitution of recovered mineral component in the construc-
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•HR 1644 RH 

1 tion and maintenance of cement or concrete projects, so as 

2 to—

3 ‘‘(1) realize more fully the energy savings and 

4 environmental benefits associated with increased sub5 stitution; and 

6 ‘‘(2) eliminate barriers identified under sub7 section (c). 

8 ‘‘(e) EFFECT OF SECTION.—Nothing in this section af9 fects the requirements of section 6002 (including the guide10 lines and specifications for implementing those require11 ments).’’. 

12 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

13 contents of the Solid Waste Disposal Act is amended by 

14 adding after the item relating to section 6004 the following 

15 new item:

‘‘Sec. 6005. Increased use of recovered mineral component in federally funded 

projects involving procurement of cement or concrete.’’.

16 Subtitle B—Energy Assistance and 

17 State Programs 

18 SEC. 1021. LIHEAP AND WEATHERIZATION ASSISTANCE. 

19 (a) LOW-INCOME HOME ENERGY ASSISTANCE PRO20 GRAM.—Section 2602(b) of the Low-Income Home Energy 

21 Assistance Act of 1981 (42 U.S.C. 8621(b)) is amended by 

22 striking ‘‘each of fiscal years 2002 through 2004’’ and in23 serting ‘‘each of fiscal years 2002 and 2003, and 

24 $3,400,000,000 for each of fiscal years 2004 through 2006’’. 
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1 (b) WEATHERIZATION.—Section 422 of the Energy 

2 Conservation and Production Act (42 U.S.C. 6872) is 

3 amended by striking ‘‘for fiscal years 1999 through 2003 

4 such sums as may be necessary’’ and inserting 

5 ‘‘$325,000,000 for fiscal year 2004, $400,000,000 for fiscal 

6 year 2005, and $500,000,000 for fiscal year 2006’’. 

7 (c) REPORT TO CONGRESS.—Not later than 1 year 

8 after the date of enactment of this Act, the Secretary of 

9 Health and Human Services shall transmit to the Congress 

10 a report on how the Low-Income Home Energy Assistance 

11 Program could be used more effectively to prevent loss of 

12 life from extreme temperatures. In preparing such report, 

13 the Secretary shall consult with appropriate officials in all 

14 50 States and the District of Columbia. 

15 SEC. 1022. STATE ENERGY PROGRAMS. 

16 (a) STATE ENERGY CONSERVATION PLANS.—Section 

17 362 of the Energy Policy and Conservation Act (42 U.S.C. 

18 6322) is amended by inserting at the end the following new 

19 subsection: 

20 ‘‘(g) The Secretary shall, at least once every 3 years, 

21 invite the Governor of each State to review and, if nec22 essary, revise the energy conservation plan of such State 

23 submitted under subsection (b) or (e). Such reviews should 

24 consider the energy conservation plans of other States with-
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1 in the region, and identify opportunities and actions car2 ried out in pursuit of common energy conservation goals.’’. 

3 (b) STATE ENERGY EFFICIENCY GOALS.—Section 364 

4 of the Energy Policy and Conservation Act (42 U.S.C. 

5 6324) is amended to read as follows: 

6 ‘‘STATE ENERGY EFFICIENCY GOALS

7 ‘‘SEC. 364. Each State energy conservation plan with 

8 respect to which assistance is made available under this 

9 part on or after the date of enactment of the Energy Policy 

10 Act of 2003 shall contain a goal, consisting of an improve11 ment of 25 percent or more in the efficiency of use of energy 

12 in the State concerned in calendar year 2010 as compared 

13 to calendar year 1990, and may contain interim goals.’’. 

14 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

15 365(f) of the Energy Policy and Conservation Act (42 

16 U.S.C. 6325(f)) is amended by striking ‘‘for fiscal years 

17 1999 through 2003 such sums as may be necessary’’ and 

18 inserting ‘‘$100,000,000 for each of the fiscal years 2004 

19 and 2005 and $125,000,000 for fiscal year 2006’’.

20 SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PRO21 GRAMS. 

22 (a) DEFINITIONS.—In this section: 

23 (1) ELIGIBLE STATE.—The term ‘‘eligible State’’ 

24 means a State that meets the requirements of sub25 section (b). 
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1 (2) ENERGY STAR PROGRAM.—The term ‘‘Energy 

2 Star program’’ means the program established by sec3 tion 324A of the Energy Policy and Conservation Act. 

4 (3) RESIDENTIAL ENERGY STAR PRODUCT.—The 

5 term ‘‘residential Energy Star product’’ means a 

6 product for a residence that is rated for energy effi7 ciency under the Energy Star program. 

8 (4) STATE ENERGY OFFICE.—The term ‘‘State 

9 energy office’’ means the State agency responsible for 

10 developing State energy conservation plans under sec11 tion 362 of the Energy Policy and Conservation Act 

12 (42 U.S.C. 6322). 

13 (5) STATE PROGRAM.—The term ‘‘State pro14 gram’’ means a State energy efficient appliance re15 bate program described in subsection (b)(1). 

16 (b) ELIGIBLE STATES.—A State shall be eligible to re17 ceive an allocation under subsection (c) if the State—

18 (1) establishes (or has established) a State energy 

19 efficient appliance rebate program to provide rebates 

20 to residential consumers for the purchase of residen21 tial Energy Star products to replace used appliances 

22 of the same type; 

23 (2) submits an application for the allocation at 

24 such time, in such form, and containing such infor25 mation as the Secretary may require; and 
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1 (3) provides assurances satisfactory to the Sec2 retary that the State will use the allocation to supple3 ment, but not supplant, funds made available to 

4 carry out the State program. 

5 (c) AMOUNT OF ALLOCATIONS.—

6 (1) IN GENERAL.—Subject to paragraph (2), for 

7 each fiscal year, the Secretary shall allocate to the

8 State energy office of each eligible State to carry out 

9 subsection (d) an amount equal to the product ob10 tained by multiplying the amount made available 

11 under subsection (f) for the fiscal year by the ratio 

12 that the population of the State in the most recent 

13 calendar year for which data are available bears to 

14 the total population of all eligible States in that cal15 endar year. 

16 (2) MINIMUM ALLOCATIONS.—For each fiscal 

17 year, the amounts allocated under this subsection 

18 shall be adjusted proportionately so that no eligible 

19 State is allocated a sum that is less than an amount 

20 determined by the Secretary. 

21 (d) USE OF ALLOCATED FUNDS.—The allocation to a 

22 State energy office under subsection (c) may be used to pay 

23 up to 50 percent of the cost of establishing and carrying 

24 out a State program. 
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1 (e) ISSUANCE OF REBATES.—Rebates may be provided 

2 to residential consumers that meet the requirements of the 

3 State program. The amount of a rebate shall be determined 

4 by the State energy office, taking into consideration—

5 (1) the amount of the allocation to the State en6 ergy office under subsection (c); 

7 (2) the amount of any Federal or State tax in8 centive available for the purchase of the residential 

9 Energy Star product; and 

10 (3) the difference between the cost of the residen11 tial Energy Star product and the cost of an appliance 

12 that is not a residential Energy Star product, but is 

13 of the same type as, and is the nearest capacity, per14 formance, and other relevant characteristics (as deter15 mined by the State energy office) to the residential 

16 Energy Star product. 

17 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

18 authorized to be appropriated to carry out this section 

19 $50,000,000 for each of the fiscal years 2004 through 2008.

20 SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS. 

21 (a) GRANTS.—The Secretary of Energy may make 

22 grants to the State agency responsible for developing State 

23 energy conservation plans under section 362 of the Energy 

24 Policy and Conservation Act (42 U.S.C. 6322), or, if no 

25 such agency exists, a State agency designated by the Gov-
43

•HR 1644 RH 

1 ernor of the State, to assist units of local government in 

2 the State in improving the energy efficiency of public build3 ings and facilities—

4 (1) through construction of new energy efficient 

5 public buildings that use at least 30 percent less en6 ergy than a comparable public building constructed 

7 in compliance with standards prescribed in chapter 8 

8 of the 2000 International Energy Conservation Code, 

9 or a similar State code intended to achieve substan10 tially equivalent efficiency levels; or 

11 (2) through renovation of existing public build12 ings to achieve reductions in energy use of at least 30 

13 percent as compared to the baseline energy use in 

14 such buildings prior to renovation, assuming a 3-

15 year, weather-normalized average for calculating such 

16 baseline. 

17 (b) ADMINISTRATION.—State energy offices receiving 

18 grants under this section shall—

19 (1) maintain such records and evidence of com20 pliance as the Secretary may require; and 

21 (2) develop and distribute information and ma22 terials and conduct programs to provide technical 

23 services and assistance to encourage planning, financ24 ing, and design of energy efficient public buildings by 

25 units of local government. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

2 purposes of this section, there are authorized to be appro3 priated to the Secretary of Energy such sums as may be 

4 necessary for each of fiscal years 2004 through 2013. Not 

5 more than 30 percent of appropriated funds shall be used 

6 for administration.

7 SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY 

8 PILOT PROGRAM. 

9 (a) GRANTS.—The Secretary of Energy is authorized 

10 to make grants to units of local government, private, non11 profit community development organizations, and Indian 

12 tribe economic development entities to improve energy effi13 ciency, identify and develop alternative renewable and dis14 tributed energy supplies, and increase energy conservation 

15 in low income rural and urban communities. 

16 (b) PURPOSE OF GRANTS.—The Secretary may make 

17 grants on a competitive basis for—

18 (1) investments that develop alternative renew19 able and distributed energy supplies; 

20 (2) energy efficiency projects and energy con21 servation programs; 

22 (3) studies and other activities that improve en23 ergy efficiency in low income rural and urban com24 munities; 
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1 (4) planning and development assistance for in2 creasing the energy efficiency of buildings and facili3 ties; and 

4 (5) technical and financial assistance to local 

5 government and private entities on developing new 

6 renewable and distributed sources of power or com7 bined heat and power generation.

8 (c) DEFINITION.—For purposes of this section, the 

9 term ‘‘Indian tribe’’ means any Indian tribe, band, nation, 

10 or other organized group or community, including any 

11 Alaskan Native village or regional or village corporation 

12 as defined in or established pursuant to the Alaska Native 

13 Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 

14 recognized as eligible for the special programs and services 

15 provided by the United States to Indians because of their 

16 status as Indians. 

17 (d) AUTHORIZATION OF APPROPRIATIONS.—For the 

18 purposes of this section there are authorized to be appro19 priated to the Secretary of Energy $20,000,000 for fiscal 

20 year 2004 and each fiscal year thereafter through fiscal year 

21 2006. 
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1 Subtitle C—Energy Efficient 

2 Products 

3 SEC. 1041. ENERGY STAR PROGRAM. 

4 (a) AMENDMENT.—The Energy Policy and Conserva5 tion Act (42 U.S.C. 6201 and following) is amended by in6 serting the following after section 324: 

7 ‘‘SEC. 324A. ENERGY STAR PROGRAM. 

8 ‘‘There is established at the Department of Energy and 

9 the Environmental Protection Agency a program to identify 

10 and promote energy-efficient products and buildings in 

11 order to reduce energy consumption, improve energy secu12 rity, and reduce pollution through labeling of and other 

13 forms of communication about products and buildings that 

14 meet the highest energy efficiency standards. Responsibil15 ities under the program shall be divided between the De16 partment of Energy and the Environmental Protection 

17 Agency consistent with the terms of agreements between the 

18 two agencies. The Administrator and the Secretary shall—

19 ‘‘(1) promote Energy Star compliant technologies 

20 as the preferred technologies in the marketplace for 

21 achieving energy efficiency and to reduce pollution; 

22 ‘‘(2) work to enhance public awareness of the 

23 Energy Star label, including special outreach to small 

24 businesses; 
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1 ‘‘(3) preserve the integrity of the Energy Star 

2 label; and 

3 ‘‘(4) solicit the comments of interested parties in 

4 establishing a new Energy Star product category or 

5 in revising a product category, and upon adoption of 

6 a new or revised product category provide an expla7 nation of the decision that responds to significant 

8 public comments.’’. 

9 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

10 contents of the Energy Policy and Conservation Act is 

11 amended by inserting after the item relating to section 324 

12 the following new item:

‘‘Sec. 324A. Energy Star program.’’.

13 SEC. 1042. CONSUMER EDUCATION ON ENERGY EFFICIENCY 

14 BENEFITS OF AIR CONDITIONING, HEATING, 

15 AND VENTILATION MAINTENANCE. 

16 Section 337 of the Energy Policy and Conservation Act 

17 (42 U.S.C. 6307) is amended by adding at the end the fol18 lowing: 

19 ‘‘(c) HVAC MAINTENANCE.—(1) For the purpose of en20 suring that installed air conditioning and heating systems 

21 operate at their maximum rated efficiency levels, the Sec22 retary shall, within 180 days of the date of enactment of 

23 this subsection, carry out a program to educate homeowners 

24 and small business owners concerning the energy savings 
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1 resulting from properly conducted maintenance of air con2 ditioning, heating, and ventilating systems. 

3 ‘‘(2) The Secretary shall carry out the program in co4 operation with the Administrator of the Environmental 

5 Protection Agency and such other entities as the Secretary 

6 considers appropriate, including industry trade associa7 tions, industry members, and energy efficiency organiza8 tions. 

9 ‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST10 ANCE.—The Administrator of the Small Business Adminis11 tration, in consultation with the Secretary of Energy and 

12 the Administrator of the Environmental Protection Agency, 

13 shall develop and coordinate a Government-wide program, 

14 building on the existing Energy Star for Small Business 

15 Program, to assist small business to become more energy 

16 efficient, understand the cost savings obtainable through ef17 ficiencies, and identify financing options for energy effi18 ciency upgrades. The Secretary and the Administrator shall 

19 make the program information available directly to small 

20 businesses and through other Federal agencies, including the 

21 Federal Emergency Management Agency, and the Depart22 ment of Agriculture.’’.
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1 SEC. 1043. ADDITIONAL DEFINITIONS. 

2 Section 321 of the Energy Policy and Conservation Act 

3 (42 U.S.C. 6291) is amended by adding at the end the fol4 lowing: 

5 ‘‘(32) The term ‘battery charger’ means a device 

6 that charges batteries for consumer products. 

7 ‘‘(33) The term ‘commercial refrigerator, freezer 

8 and refrigerator-freezer’ means a refrigerator, freezer 

9 or refrigerator-freezer that— 

10 ‘‘(A) is not a consumer product regulated 

11 under this Act; and 

12 ‘‘(B) incorporates most components involved 

13 in the vapor-compression cycle and the refrig14 erated compartment in a single package. 

15 ‘‘(34) The term ‘external power supply’ means 

16 an external power supply circuit that is used to con17 vert household electric current into either DC current 

18 or lower-voltage AC current to operate a consumer 

19 product. 

20 ‘‘(35) The term ‘illuminated exit sign’ means a 

21 sign that— 

22 ‘‘(A) is designed to be permanently fixed in 

23 place to identify an exit; and 

24 ‘‘(B) consists of— 
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1 ‘‘(i) an electrically powered integral 

2 light source that illuminates the legend 

3 ‘EXIT’ and any directional indicators; and 

4 ‘‘(ii) provides contrast between the leg5 end, any directional indicators, and the 

6 background. 

7 ‘‘(36)(A) Except as provided in subparagraph 

8 (B), the term ‘low-voltage dry-type transformer’ 

9 means a transformer that— 

10 ‘‘(i) has an input voltage of 600 volts or 

11 less; 

12 ‘‘(ii) is air-cooled; 

13 ‘‘(iii) does not use oil as a coolant; and 

14 ‘‘(iv) is rated for operation at a frequency 

15 of 60 Hertz. 

16 ‘‘(B) The term ‘low-voltage dry-type transformer’ 

17 does not include—

18 ‘‘(i) transformers with multiple voltage 

19 taps, with the highest voltage tap equaling at 

20 least 20 percent more than the lowest voltage tap; 

21 ‘‘(ii) transformers that are designed to be 

22 used in a special purpose application, such as 

23 transformers commonly known as drive trans24 formers, rectifier transformers, autotransformers, 

25 Uninterruptible Power System transformers, im-
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1 pedance transformers, harmonic transformers, 

2 regulating transformers, sealed and nonven3 tilating transformers, machine tool transformers, 

4 welding transformers, grounding transformers, or 

5 testing transformers; or 

6 ‘‘(iii) any transformer not listed in clause 

7 (ii) that is excluded by the Secretary by rule be8 cause the transformer is designed for a special 

9 application and the application of standards to 

10 the transformer would not result in significant 

11 energy savings. 

12 ‘‘(37) The term ‘standby mode’ means the lowest 

13 amount of electric power used by a household appli14 ance when not performing its active functions, as de15 fined on an individual product basis by the Sec16 retary. 

17 ‘‘(38) The term ‘torchiere’ means a portable elec18 tric lamp with a reflector bowl that directs light up19 ward so as to give indirect illumination. 

20 ‘‘(39) The term ‘transformer’ means a device 

21 consisting of two or more coils of insulated wire that 

22 transfers alternating current by electromagnetic in23 duction from one coil to another to change the origi24 nal voltage or current value. 
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1 ‘‘(40) The term ‘unit heater’ means a self-con2 tained fan-type heater designed to be installed within 

3 the heated space, except that such term does not in4 clude a warm air furnace. 

5 ‘‘(41) The term ‘traffic signal module’ means a 

6 standard 8-inch (200mm) or 12-inch (300mm) traffic 

7 signal indication, consisting of a light source, a lens, 

8 and all other parts necessary for operation, that com9 municates movement messages to drivers through red, 

10 amber, and green colors.’’. 

11 SEC. 1044. ADDITIONAL TEST PROCEDURES. 

12 (a) EXIT SIGNS.—Section 323(b) of the Energy Policy 

13 and Conservation Act (42 U.S.C. 6293) is amended by add14 ing at the end the following: 

15 ‘‘(9) Test procedures for illuminated exit signs 

16 shall be based on the test method used under Version 

17 2.0 of the Energy Star program of the Environmental 

18 Protection Agency for illuminated exit signs. 

19 ‘‘(10) Test procedures for low voltage dry-type 

20 distribution transformers shall be based on the 

21 ‘Standard Test Method for Measuring the Energy 

22 Consumption of Distribution Transformers’ pre23 scribed by the National Electrical Manufacturers As24 sociation (NEMA TP 2–1998). The Secretary may re-
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1 view and revise this test procedure based on future re2 visions to such standard test method. 

3 ‘‘(11) Test procedures for traffic signal modules 

4 shall be based on the test method used under the En5 ergy Star program of the Environmental Protection 

6 Agency for traffic signal modules, as in effect on the 

7 date of enactment of this paragraph.’’. 

8 (b) ADDITIONAL CONSUMER AND COMMERCIAL PROD9 UCTS.—Section 323 of the Energy Policy and Conservation 

10 Act (42 U.S.C. 6293) is further amended by adding at the 

11 end the following: 

12 ‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PROD13 UCTS.—The Secretary shall within 24 months after the date 

14 of enactment of this subsection prescribe testing require15 ments for suspended ceiling fans, refrigerated bottled or 

16 canned beverage vending machines, commercial unit heat17 ers, and commercial refrigerators, freezers and refrigerator18 freezers. Such testing requirements shall be based on exist19 ing test procedures used in industry to the extent practical 

20 and reasonable. In the case of suspended ceiling fans, such 

21 test procedures shall include efficiency at both maximum 

22 output and at an output no more than 50 percent of the 

23 maximum output.’’. 
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1 SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDI2 TIONAL CONSUMER AND COMMERCIAL PROD3 UCTS. 

4 Section 325 of the Energy Policy and Conservation Act 

5 (42 U.S.C. 6295) is amended by adding at the end the fol6 lowing: 

7 ‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP8 TION.—

9 ‘‘(1) INITIAL RULEMAKING.—(A) The Secretary 

10 shall, within 18 months after the date of enactment 

11 of this subsection, prescribe by notice and comment, 

12 definitions of standby mode and test procedures for 

13 the standby mode power use of battery chargers and 

14 external power supplies. In establishing these test pro15 cedures, the Secretary shall consider, among other fac16 tors, existing test procedures used for measuring en17 ergy consumption in standby mode and assess the 

18 current and projected future market for battery char19 gers and external power supplies. This assessment

20 shall include estimates of the significance of potential 

21 energy savings from technical improvements to these 

22 products and suggested product classes for standards. 

23 Prior to the end of this time period, the Secretary 

24 shall hold a scoping workshop to discuss and receive 

25 comments on plans for developing energy conservation 
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1 standards for standby mode energy use for these prod2 ucts. 

3 ‘‘(B) The Secretary shall, within 3 years after 

4 the date of enactment of this subsection, issue a final 

5 rule that determines whether energy conservation 

6 standards shall be promulgated for battery chargers 

7 and external power supplies or classes thereof. For 

8 each product class, any such standards shall be set at 

9 the lowest level of standby energy use that— 

10 ‘‘(i) meets the criteria of subsections (o), 

11 (p), (q), (r), (s) and (t); and 

12 ‘‘(ii) will result in significant overall an13 nual energy savings, considering both standby 

14 mode and other operating modes. 

15 ‘‘(2) DESIGNATION OF ADDITIONAL COVERED

16 PRODUCTS.—(A) Not later than 180 days after the 

17 date of enactment of this subsection, the Secretary 

18 shall publish for public comment and public hearing 

19 a notice to determine whether any noncovered prod20 ucts should be designated as covered products for the 

21 purpose of instituting a rulemaking under this section 

22 to determine whether an energy conservation standard 

23 restricting standby mode energy consumption, should 

24 be promulgated; except that any restriction on stand-
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1 by mode energy consumption shall be limited to major 

2 sources of such consumption. 

3 ‘‘(B) In making the determinations pursuant to 

4 subparagraph (A) of whether to designate new covered 

5 products and institute rulemakings, the Secretary 

6 shall, among other relevant factors and in addition to 

7 the criteria in section 322(b), consider— 

8 ‘‘(i) standby mode power consumption com9 pared to overall product energy consumption; 

10 and 

11 ‘‘(ii) the priority and energy savings poten12 tial of standards which may be promulgated 

13 under this subsection compared to other required 

14 rulemakings under this section and the available 

15 resources of the Department to conduct such 

16 rulemakings. 

17 ‘‘(C) Not later than 1 year after the date of en18 actment of this subsection, the Secretary shall issue a 

19 determination of any new covered products for which 

20 he intends to institute rulemakings on standby mode 

21 pursuant to this section and he shall state the dates 

22 by which he intends to initiate those rulemakings. 

23 ‘‘(3) REVIEW OF STANDBY ENERGY USE IN COV24 ERED PRODUCTS.—In determining pursuant to sec25 tion 323 whether test procedures and energy conserva-
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1 tion standards pursuant to this section should be re2 vised, the Secretary shall consider for covered prod3 ucts which are major sources of standby mode energy 

4 consumption whether to incorporate standby mode 

5 into such test procedures and energy conservation 

6 standards, taking into account, among other relevant 

7 factors, the criteria for non-covered products in sub8 paragraph (B) of paragraph (2) of this subsection. 

9 ‘‘(4) RULEMAKING FOR STANDBY MODE.—(A) 

10 Any rulemaking instituted under this subsection or 

11 for covered products under this section which restricts 

12 standby mode power consumption shall be subject to 

13 the criteria and procedures for issuing energy con14 servation standards set forth in this section and the 

15 criteria set forth in subparagraph (B) of paragraph 

16 (2) of this subsection. 

17 ‘‘(B) No standard can be proposed for new cov18 ered products or covered products in a standby mode 

19 unless the Secretary has promulgated applicable test 

20 procedures for each product pursuant to section 323. 

21 ‘‘(C) The provisions of section 327 shall apply to 

22 new covered products which are subject to the 

23 rulemakings for standby mode after a final rule has 

24 been issued. 
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1 ‘‘(5) EFFECTIVE DATE.—Any standard promul2 gated under this subsection shall be applicable to 

3 products manufactured or imported 3 years after the 

4 date of promulgation. 

5 ‘‘(6) VOLUNTARY PROGRAMS TO REDUCE STAND6 BY MODE ENERGY USE.—The Secretary and the Ad7 ministrator shall collaborate and develop programs, 

8 including programs pursuant to section 324A (relat9 ing to Energy Star Programs) and other voluntary 

10 industry agreements or codes of conduct, which are 

11 designed to reduce standby mode energy use. 

12 ‘‘(v) SUSPENDED CEILING FANS, VENDING MACHINES, 

13 UNIT HEATERS, AND COMMERCIAL REFRIGERATORS, 

14 FREEZERS AND REFRIGERATOR-FREEZERS.—The Sec15 retary shall within 24 months after the date on which test16 ing requirements are prescribed by the Secretary pursuant 

17 to section 323(f), prescribe, by rule, energy conservation 

18 standards for suspended ceiling fans, refrigerated bottled or 

19 canned beverage vending machines, unit heaters, and com20 mercial refrigerators, freezers and refrigerator-freezers. In 

21 establishing standards under this subsection, the Secretary 

22 shall use the criteria and procedures contained in sub23 sections (l) and (m). Any standard prescribed under this 

24 subsection shall apply to products manufactured 3 years 
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1 after the date of publication of a final rule establishing such 

2 standard. 

3 ‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit 

4 signs manufactured on or after January 1, 2005 shall meet 

5 the Version 2.0 Energy Star Program performance require6 ments for illuminated exit signs prescribed by the Environ7 mental Protection Agency 

8 ‘‘(x) TORCHIERES.—Torchieres manufactured on or 

9 after January 1, 2005— 

10 ‘‘(1) shall consume not more than 190 watts of 

11 power; and 

12 ‘‘(2) shall not be capable of operating with lamps 

13 that total more than 190 watts. 

14 ‘‘(y) LOW VOLTAGE DRY-TYPE TRANSFORMERS.—The 

15 efficiency of low voltage dry-type transformers manufac16 tured on or after January 1, 2005 shall be the Class I Effi17 ciency Levels for low voltage dry-type transformers specified 

18 in Table 4–2 of the ‘Guide for Determining Energy Effi19 ciency for Distribution Transformers’ published by the Na20 tional Electrical Manufacturers Association (NEMA TP–

21 1–1996).

22 ‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal mod23 ules manufactured on or after January 1, 2006 shall meet 

24 the performance requirements used under the Energy Star 

25 program of the Environmental Protection Agency for traffic 
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1 signals, as in effect on the date of enactment of this para2 graph, and shall be installed with compatible, electrically3 connected signal control interface devices and conflict moni4 toring systems. 

5 ‘‘(aa) EFFECTIVE DATE OF SECTION 327.—The provi6 sions of section 327 shall apply to products for which stand7 ards are set in subsections (v) through (z) of this section 

8 after the effective date for such standards.’’.

9 SEC. 1046. ENERGY LABELING. 

10 (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER

11 PRODUCT LABELING.—Paragraph (2) of section 324(a) of 

12 the Energy Policy and Conservation Act (42 U.S.C. 

13 6294(a)(2)) is amended by adding at the end the following: 

14 ‘‘(F) Not later than 3 months after the date of enact15 ment of this subparagraph, the Commission shall initiate 

16 a rulemaking to consider the effectiveness of the current con17 sumer products labeling program in assisting consumers in 

18 making purchasing decisions and improving energy effi19 ciency and to consider changes to the labeling rules that 

20 would improve the effectiveness of consumer product labels. 

21 Such rulemaking shall be completed within 2 years after 

22 the date of enactment of this subparagraph.’’. 

23 (b) RULEMAKING ON LABELING FOR ADDITIONAL

24 PRODUCTS.—Section 324(a) of the Energy Policy and Con-
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1 servation Act (42 U.S.C. 6294(a)) is further amended by 

2 adding at the end the following: 

3 ‘‘(5) The Secretary or the Commission, as appropriate, 

4 may for covered products referred to in subsections (u) 

5 through (z) of section 325, prescribe, by rule, pursuant to 

6 this section, labeling requirements for such products after 

7 a test procedure has been set pursuant to section 323.’’.

8 SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS. 

9 The Secretary of Energy shall contract with the Na10 tional Academy of Sciences for a study, to be completed 

11 within 1 year of enactment of this Act, to examine whether 

12 the goals of energy efficiency standards are best served by 

13 measurement of energy consumed, and efficiency improve14 ments, at the actual site of energy consumption, or through 

15 the full fuel cycle, beginning at the source of energy produc16 tion. The Secretary shall submit the report to the Congress.

17 TITLE II—OIL AND GAS 

18 Subtitle A—Alaska Natural Gas 

19 Pipeline 

20 SEC. 2001. SHORT TITLE. 

21 This subtitle may be cited as the ‘‘Alaska Natural Gas 

22 Pipeline Act of 2003’’. 

23 SEC. 2002. FINDINGS AND PURPOSES. 

24 (a) FINDINGS.—Congress finds the following: 
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1 (1) Construction of a natural gas pipeline sys2 tem from the Alaskan North Slope to United States 

3 markets is in the national interest and will enhance 

4 national energy security by providing access to the 

5 significant gas reserves in Alaska needed to meet the 

6 anticipated demand for natural gas. 

7 (2) The Commission issued a conditional certifi8 cate of public convenience and necessity for the Alas9 ka natural gas transportation system, which remains 

10 in effect. 

11 (b) PURPOSES.—The purposes of this subtitle are as 

12 follows: 

13 (1) To provide a statutory framework for the ex14 pedited approval, construction, and initial operation 

15 of an Alaska natural gas transportation project, as 

16 an alternative to the framework provided in the Alas17 ka Natural Gas Transportation Act of 1976 (15 

18 U.S.C. 719 et seq.), which remains in effect. 

19 (2) To establish a process for providing access to 

20 such transportation project in order to promote com21 petition in the exploration, development, and produc22 tion of Alaska natural gas. 

23 (3) To clarify Federal authorities under the 

24 Alaska Natural Gas Transportation Act of 1976. 
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1 SEC. 2003. DEFINITIONS. 

2 In this subtitle, the following definitions apply: 

3 (1) ALASKA NATURAL GAS.—The term ‘‘Alaska 

4 natural gas’’ means natural gas derived from the area 

5 of the State of Alaska lying north of 64 degrees North 

6 latitude. 

7 (2) ALASKA NATURAL GAS TRANSPORTATION

8 PROJECT.—The term ‘‘Alaska natural gas transpor9 tation project’’ means any natural gas pipeline sys10 tem that carries Alaska natural gas to the border be11 tween Alaska and Canada (including related facilities 

12 subject to the jurisdiction of the Commission) that is 

13 authorized under either—

14 (A) the Alaska Natural Gas Transportation 

15 Act of 1976 (15 U.S.C. 719 et seq.); or 

16 (B) section 2004.

17 (3) ALASKA NATURAL GAS TRANSPORTATION SYS18 TEM.—The term ‘‘Alaska natural gas transportation 

19 system’’ means the Alaska natural gas transportation 

20 project authorized under the Alaska Natural Gas 

21 Transportation Act of 1976 and designated and de22 scribed in section 2 of the President’s decision. 

23 (4) COMMISSION.—The term ‘‘Commission’’ 

24 means the Federal Energy Regulatory Commission. 

25 (5) PRESIDENT’S DECISION.—The term ‘‘Presi26 dent’s decision’’ means the decision and report to 
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1 Congress on the Alaska natural gas transportation 

2 system issued by the President on September 22, 

3 1977, pursuant to section 7 of the Alaska Natural Gas 

4 Transportation Act of 1976 (15 U.S.C. 719e) and ap5 proved by Public Law 95–158 (91 Stat. 1268). 

6 SEC. 2004. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN7 IENCE AND NECESSITY. 

8 (a) AUTHORITY OF THE COMMISSION.—Notwith9 standing the provisions of the Alaska Natural Gas Trans10 portation Act of 1976 (15 U.S.C. 719 et seq.), the Commis11 sion may, pursuant to section 7(c) of the Natural Gas Act 

12 (15 U.S.C. 717f(c)), consider and act on an application for 

13 the issuance of a certificate of public convenience and neces14 sity authorizing the construction and operation of an Alas15 ka natural gas transportation project other than the Alaska 

16 natural gas transportation system. 

17 (b) ISSUANCE OF CERTIFICATE.—

18 (1) IN GENERAL.—The Commission shall issue a 

19 certificate of public convenience and necessity author20 izing the construction and operation of an Alaska 

21 natural gas transportation project under this section 

22 if the applicant has satisfied the requirements of sec23 tion 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)). 
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1 (2) CONSIDERATIONS.—In considering an appli2 cation under this section, the Commission shall pre3 sume that—

4 (A) a public need exists to construct and 

5 operate the proposed Alaska natural gas trans6 portation project; and 

7 (B) sufficient downstream capacity will 

8 exist to transport the Alaska natural gas moving 

9 through such project to markets in the contiguous 

10 United States. 

11 (c) EXPEDITED APPROVAL PROCESS.—The Commis12 sion shall issue a final order granting or denying any ap13 plication for a certificate of public convenience and neces14 sity under section 7(c) of the Natural Gas Act (15 U.S.C. 

15 717f(c)) and this section not more than 60 days after the 

16 issuance of the final environmental impact statement for 

17 that project pursuant to section 2005. 

18 (d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—No 

19 license, permit, lease, right-of-way, authorization, or other 

20 approval required under Federal law for the construction 

21 of any pipeline to transport natural gas from lands within 

22 the Prudhoe Bay oil and gas lease area may be granted 

23 for any pipeline that follows a route that traverses—
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1 (1) the submerged lands (as defined by the Sub2 merged Lands Act) beneath, or the adjacent shoreline 

3 of, the Beaufort Sea; and 

4 (2) enters Canada at any point north of 68 de5 grees North latitude. 

6 (e) OPEN SEASON.—Except where an expansion is or7 dered pursuant to section 2006, initial or expansion capac8 ity on any Alaska natural gas transportation project shall 

9 be allocated in accordance with procedures to be established 

10 by the Commission in regulations governing the conduct of 

11 open seasons for such project. Such procedures shall include 

12 the criteria for and timing of any open seasons, be con13 sistent with the purposes set forth in section 2002(b)(2), 

14 and, for any open season for capacity beyond the initial 

15 capacity, provide the opportunity for the transportation of 

16 natural gas other than from the Prudhoe Bay and Point 

17 Thompson units. The Commission shall issue such regula18 tions not later than 120 days after the date of enactment 

19 of this Act. 

20 (f) PROJECTS IN THE CONTIGUOUS UNITED STATES.—

21 Applications for additional or expanded pipeline facilities 

22 that may be required to transport Alaska natural gas from 

23 Canada to markets in the contiguous United States may 

24 be made pursuant to the Natural Gas Act. To the extent 

25 such pipeline facilities include the expansion of any facility 
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1 constructed pursuant to the Alaska Natural Gas Transpor2 tation Act of 1976, the provisions of that Act shall continue 

3 to apply. 

4 (g) STUDY OF IN-STATE NEEDS.—The holder of the 

5 certificate of public convenience and necessity issued, modi6 fied, or amended by the Commission for an Alaska natural 

7 gas transportation project shall demonstrate that it has con8 ducted a study of Alaska in-State needs, including tie-in 

9 points along the Alaska natural gas transportation project 

10 for in-State access. 

11 (h) ALASKA ROYALTY GAS.—The Commission, upon 

12 the request of the State of Alaska and after a hearing, may 

13 provide for reasonable access to the Alaska natural gas 

14 transportation project for the State of Alaska or its designee 

15 for the transportation of the State’s royalty gas for local 

16 consumption needs within the State; except that the rates 

17 of existing shippers of subscribed capacity on such project 

18 shall not be increased as a result of such access. 

19 (i) REGULATIONS.—The Commission may issue regu20 lations to carry out the provisions of this section. 

21 SEC. 2005. ENVIRONMENTAL REVIEWS. 

22 (a) COMPLIANCE WITH NEPA.—The issuance of a cer23 tificate of public convenience and necessity authorizing the 

24 construction and operation of any Alaska natural gas 

25 transportation project under section 2004 shall be treated 
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1 as a major Federal action significantly affecting the quality 

2 of the human environment within the meaning of section 

3 102(2)(C) of the National Environmental Policy Act of 

4 1969 (42 U.S.C. 4332(2)(C)). 

5 (b) DESIGNATION OF LEAD AGENCY.—The Commis6 sion shall be the lead agency for purposes of complying with 

7 the National Environmental Policy Act of 1969, and shall 

8 be responsible for preparing the statement required by sec9 tion 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with re10 spect to an Alaska natural gas transportation project under 

11 section 2004. The Commission shall prepare a single envi12 ronmental statement under this section, which shall consoli13 date the environmental reviews of all Federal agencies con14 sidering any aspect of the project. 

15 (c) OTHER AGENCIES.—All Federal agencies consid16 ering aspects of the construction and operation of an Alaska

17 natural gas transportation project under section 2004 shall 

18 cooperate with the Commission, and shall comply with 

19 deadlines established by the Commission in the preparation 

20 of the statement under this section. The statement prepared 

21 under this section shall be used by all such agencies to sat22 isfy their responsibilities under section 102(2)(C) of the Na23 tional Environmental Policy Act of 1969 (42 U.S.C. 

24 4332(2)(C)) with respect to such project. 
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1 (d) EXPEDITED PROCESS.—The Commission shall 

2 issue a draft statement under this section not later than 

3 12 months after the Commission determines the application 

4 to be complete and shall issue the final statement not later 

5 than 6 months after the Commission issues the draft state6 ment, unless the Commission for good cause finds that addi7 tional time is needed. 

8 SEC. 2006. PIPELINE EXPANSION. 

9 (a) AUTHORITY.—With respect to any Alaska natural 

10 gas transportation project, upon the request of one or more 

11 persons and after giving notice and an opportunity for a 

12 hearing, the Commission may order the expansion of such 

13 project if it determines that such expansion is required by 

14 the present and future public convenience and necessity. 

15 (b) REQUIREMENTS.—Before ordering an expansion, 

16 the Commission shall—

17 (1) approve or establish rates for the expansion 

18 service that are designed to ensure the recovery, on an 

19 incremental or rolled-in basis, of the cost associated 

20 with the expansion (including a reasonable rate of re21 turn on investment); 

22 (2) ensure that the rates as established do not re23 quire existing shippers on the Alaska natural gas 

24 transportation project to subsidize expansion ship25 pers; 
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1 (3) find that the proposed shipper will comply 

2 with, and the proposed expansion and the expansion 

3 of service will be undertaken and implemented based 

4 on, terms and conditions consistent with the then-ef5 fective tariff of the Alaska natural gas transportation 

6 project; 

7 (4) find that the proposed facilities will not ad8 versely affect the financial or economic viability of the 

9 Alaska natural gas transportation project; 

10 (5) find that the proposed facilities will not ad11 versely affect the overall operations of the Alaska nat12 ural gas transportation project; 

13 (6) find that the proposed facilities will not di14 minish the contract rights of existing shippers to pre15 viously subscribed certificated capacity; 

16 (7) ensure that all necessary environmental re17 views have been completed; and 

18 (8) find that adequate downstream facilities exist 

19 or are expected to exist to deliver incremental Alaska 

20 natural gas to market. 

21 (c) REQUIREMENT FOR A FIRM TRANSPORTATION

22 AGREEMENT.—Any order of the Commission issued pursu23 ant to this section shall be null and void unless the person 

24 or persons requesting the order executes a firm transpor25 tation agreement with the Alaska natural gas transpor-
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1 tation project within a reasonable period of time as speci2 fied in such order. 

3 (d) LIMITATION.—Nothing in this section shall be con4 strued to expand or otherwise affect any authorities of the 

5 Commission with respect to any natural gas pipeline lo6 cated outside the State of Alaska. 

7 (e) REGULATIONS.—The Commission may issue regu8 lations to carry out the provisions of this section. 

9 SEC. 2007. FEDERAL COORDINATOR. 

10 (a) ESTABLISHMENT.—There is established, as an 

11 independent office in the executive branch, the Office of the 

12 Federal Coordinator for Alaska Natural Gas Transpor13 tation Projects. 

14 (b) FEDERAL COORDINATOR.—The Office shall be 

15 headed by a Federal Coordinator for Alaska Natural Gas 

16 Transportation Projects, who shall—

17 (1) be appointed by the President, by and with 

18 the advice of the Senate; 

19 (2) hold office at the pleasure of the President; 

20 and 

21 (3) be compensated at the rate prescribed for 

22 level III of the Executive Schedule (5 U.S.C. 5314). 

23 (c) DUTIES.—The Federal Coordinator shall be respon24 sible for—
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1 (1) coordinating the expeditious discharge of all 

2 activities by Federal agencies with respect to an Alas3 ka natural gas transportation project; and 

4 (2) ensuring the compliance of Federal agencies 

5 with the provisions of this subtitle. 

6 (d) REVIEWS AND ACTIONS OF OTHER FEDERAL

7 AGENCIES.—

8 (1) EXPEDITED REVIEWS AND ACTIONS.—All re9 views conducted and actions taken by any Federal of10 ficer or agency relating to an Alaska natural gas 

11 transportation project authorized under this section 

12 shall be expedited, in a manner consistent with com13 pletion of the necessary reviews and approvals by the 

14 deadlines set forth in this subtitle.

15 (2) PROHIBITION ON CERTAIN TERMS AND CON16 DITIONS.—Except with respect to Commission actions 

17 under sections 2004, 2005, and 2006, no Federal offi18 cer or agency shall have the authority to include 

19 terms and conditions that are permitted, but not re20 quired, by law on any certificate, right-of-way, per21 mit, lease, or other authorization issued to an Alaska 

22 natural gas transportation project if the Federal Co23 ordinator determines that the terms and conditions 

24 would prevent or impair in any significant respect 
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1 the expeditious construction and operation of the 

2 project. 

3 (3) PROHIBITION ON CERTAIN ACTIONS.—Except 

4 with respect to Commission actions under sections 

5 2004, 2005, and 2006, unless required by law, no 

6 Federal officer or agency shall add to, amend, or ab7 rogate any certificate, right-of-way, permit, lease, or 

8 other authorization issued to an Alaska natural gas 

9 transportation project if the Federal Coordinator de10 termines that such action would prevent or impair in 

11 any significant respect the expeditious construction 

12 and operation of the project. 

13 (e) STATE COORDINATION.—The Federal Coordinator 

14 shall enter into a Joint Surveillance and Monitoring Agree15 ment, approved by the President and the Governor of Alas16 ka, with the State of Alaska similar to that in effect during 

17 construction of the Trans-Alaska Oil Pipeline to monitor 

18 the construction of the Alaska natural gas transportation 

19 project. The Federal Government shall have primary sur20 veillance and monitoring responsibility where the Alaska 

21 natural gas transportation project crosses Federal lands 

22 and private lands, and the State government shall have pri23 mary surveillance and monitoring responsibility where the 

24 Alaska natural gas transportation project crosses State 

25 lands. 
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1 (f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS

2 AND AUTHORITY.—Upon appointment of the Federal Coor3 dinator by the President, all of the functions and authority 

4 of the Office of Federal Inspector of Construction for the 

5 Alaska Natural Gas Transportation System vested in the 

6 Secretary of Energy pursuant to section 3012(b) of Public 

7 Law 102–486 (15 U.S.C. 719e(b)), including all functions 

8 and authority described and enumerated in the Reorganiza9 tion Plan No. 1 of 1979 (44 Fed. Reg. 33,663), Executive 

10 Order No. 12142 of June 21, 1979 (44 Fed. Reg. 36,927), 

11 and section 5 of the President’s decision, shall be transferred 

12 to the Federal Coordinator. 

13 SEC. 2008. JUDICIAL REVIEW. 

14 (a) EXCLUSIVE JURISDICTION.—Except for review by 

15 the Supreme Court of the United States on writ of certio16 rari, the United States Court of Appeals for the District 

17 of Columbia Circuit shall have original and exclusive juris18 diction to determine—

19 (1) the validity of any final order or action (in20 cluding a failure to act) of any Federal agency or of21 ficer under this subtitle; 

22 (2) the constitutionality of any provision of this 

23 subtitle, or any decision made or action taken under 

24 this subtitle; or 
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1 (3) the adequacy of any environmental impact 

2 statement prepared under the National Environ3 mental Policy Act of 1969 with respect to any action 

4 under this subtitle. 

5 (b) DEADLINE FOR FILING CLAIM.—Claims arising 

6 under this subtitle may be brought not later than 60 days 

7 after the date of the decision or action giving rise to the 

8 claim. 

9 (c) EXPEDITED CONSIDERATION.—The United States 

10 Court of Appeals for the District of Columbia Circuit shall 

11 set any action brought under subsection (a) for expedited 

12 consideration, taking into account the national interest as 

13 described in section 2002(a). 

14 (d) AMENDMENT TO ANGTA.—Section 10(c) of the 

15 Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 

16 719h) is amended by inserting after paragraph (1) the fol17 lowing: 

18 ‘‘(2) The United States Court of Appeals for the Dis19 trict of Columbia Circuit shall set any action brought under 

20 this section for expedited consideration, taking into account 

21 the national interest described in section 2.’’. 

22 SEC. 2009. STATE JURISDICTION OVER IN-STATE DELIVERY 

23 OF NATURAL GAS. 

24 (a) LOCAL DISTRIBUTION.—Any facility receiving 

25 natural gas from the Alaska natural gas transportation 
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1 project for delivery to consumers within the State of Alaska 

2 shall be deemed to be a local distribution facility within 

3 the meaning of section 1(b) of the Natural Gas Act (15 

4 U.S.C. 717(b)), and therefore not subject to the jurisdiction 

5 of the Commission. 

6 (b) ADDITIONAL PIPELINES.—Nothing in this subtitle, 

7 except as provided in section 2004(d), shall preclude or af8 fect a future gas pipeline that may be constructed to deliver 

9 natural gas to Fairbanks, Anchorage, Matanuska-Susitna 

10 Valley, or the Kenai peninsula or Valdez or any other site 

11 in the State of Alaska for consumption within or distribu12 tion outside the State of Alaska. 

13 (c) RATE COORDINATION.—Pursuant to the Natural 

14 Gas Act, the Commission shall establish rates for the trans15 portation of natural gas on the Alaska natural gas trans16 portation project. In exercising such authority, the Commis17 sion, pursuant to section 17(b) of the Natural Gas Act (15 

18 U.S.C. 717p(b)), shall confer with the State of Alaska re19 garding rates (including rate settlements) applicable to nat20 ural gas transported on and delivered from the Alaska nat21 ural gas transportation project for use within the State of 

22 Alaska. 
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1 SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUC2 TION. 

3 (a) REQUIREMENT OF STUDY.—If no application for 

4 the issuance of a certificate or amended certificate of public 

5 convenience and necessity authorizing the construction and 

6 operation of an Alaska natural gas transportation project 

7 has been filed with the Commission not later than 18 

8 months after the date of enactment of this Act, the Secretary 

9 of Energy shall conduct a study of alternative approaches 

10 to the construction and operation of the project. 

11 (b) SCOPE OF STUDY.—The study shall consider the 

12 feasibility of establishing a Government corporation to con13 struct an Alaska natural gas transportation project, and 

14 alternative means of providing Federal financing and own15 ership (including alternative combinations of Government 

16 and private corporate ownership) of the project. 

17 (c) CONSULTATION.—In conducting the study, the Sec18 retary of Energy shall consult with the Secretary of the

19 Treasury and the Secretary of the Army (acting through 

20 the Commanding General of the Corps of Engineers). 

21 (d) REPORT.—If the Secretary of Energy is required 

22 to conduct a study under subsection (a), the Secretary shall 

23 submit a report containing the results of the study, the Sec24 retary’s recommendations, and any proposals for legislation 

25 to implement the Secretary’s recommendations to Congress. 
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1 SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AU2 THORITIES. 

3 (a) SAVINGS CLAUSE.—Nothing in this subtitle affects 

4 any decision, certificate, permit, right-of-way, lease, or 

5 other authorization issued under section 9 of the Alaska 

6 Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 

7 or any Presidential findings or waivers issued in accord8 ance with that Act. 

9 (b) CLARIFICATION OF AUTHORITY TO AMEND TERMS

10 AND CONDITIONS TO MEET CURRENT PROJECT REQUIRE11 MENTS.—Any Federal officer or agency responsible for 

12 granting or issuing any certificate, permit, right-of-way, 

13 lease, or other authorization under section 9 of the Alaska 

14 Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 

15 may add to, amend, or abrogate any term or condition in16 cluded in such certificate, permit, right-of-way, lease, or 

17 other authorization to meet current project requirements 

18 (including the physical design, facilities, and tariff speci19 fications), so long as such action does not compel a change 

20 in the basic nature and general route of the Alaska natural 

21 gas transportation system as designated and described in 

22 section 2 of the President’s decision, or would otherwise pre23 vent or impair in any significant respect the expeditious 

24 construction and initial operation of such transportation 

25 system. 
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1 (c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec2 retary of Energy shall require the sponsor of the Alaska nat3 ural gas transportation system to submit such updated en4 vironmental data, reports, permits, and impact analyses as 

5 the Secretary determines are necessary to develop detailed 

6 terms, conditions, and compliance plans required by section 

7 5 of the President’s decision. 

8 SEC. 2012. SENSE OF CONGRESS. 

9 It is the sense of Congress that an Alaska natural gas 

10 transportation project will provide significant economic 

11 benefits to the United States and Canada. In order to maxi12 mize those benefits, Congress urges the sponsors of the pipe13 line project to make every effort to use steel that is manufac14 tured or produced in North America and to negotiate a 

15 project labor agreement to expedite construction of the pipe16 line. 

17 SEC. 2013. PARTICIPATION OF SMALL BUSINESS CONCERNS. 

18 (a) SENSE OF CONGRESS.—It is the sense of Congress 

19 that an Alaska natural gas transportation project will pro20 vide significant economic benefits to the United States and 

21 Canada. In order to maximize those benefits, Congress urges 

22 the sponsors of the pipeline project to maximize the partici23 pation of small business concerns in contracts and sub24 contracts awarded in carrying out the project. 

25 (b) STUDY.—
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1 (1) IN GENERAL.—The Comptroller General shall 

2 conduct a study on the extent to which small business 

3 concerns participate in the construction of oil and gas 

4 pipelines in the United States. 

5 (2) REPORT.—Not later that 1 year after the 

6 date of enactment of this Act, the Comptroller General 

7 shall transmit to Congress a report containing the re8 sults of the study. 

9 (3) UPDATES.—The Comptroller General shall 

10 update the study at least once every 5 years and 

11 transmit to Congress a report containing the results 

12 of the update. 

13 (4) APPLICABILITY.—After the date of completion 

14 of the construction of an Alaska natural gas transpor15 tation project, this subsection shall no longer apply. 

16 (c) SMALL BUSINESS CONCERN DEFINED.—In this 

17 section, the term ‘‘small business concern’’ has the meaning 

18 given such term in section 3(a) of the Small Business Act 

19 (15 U.S.C. 632(a)). 

20 SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING 

21 PROGRAM. 

22 (a) ESTABLISHMENT OF PROGRAM.—The Secretary of 

23 Labor (in this section referred to as the ‘‘Secretary’’) may 

24 make grants to the Alaska Department of Labor and Work25 force Development to—
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1 (1) develop a plan to train, through the work2 force investment system established in the State of 

3 Alaska under the Workforce Investment Act of 1998 

4 (112 Stat. 936 et seq.), adult and dislocated workers, 

5 including Alaska Natives, in urban and rural Alaska 

6 in the skills required to construct and operate an 

7 Alaska gas pipeline system; and 

8 (2) implement the plan developed pursuant to 

9 paragraph (1). 

10 (b) REQUIREMENTS FOR PLANNING GRANTS.—The 

11 Secretary may make a grant under subsection (a)(1) only 

12 if—

13 (1) the Governor of Alaska certifies in writing to 

14 the Secretary that there is a reasonable expectation 

15 that construction of an Alaska gas pipeline will com16 mence within 3 years after the date of such certifi17 cation; and 

18 (2) the Secretary of the Interior concurs in writ19 ing to the Secretary with the certification made under 

20 paragraph (1). 

21 (c) REQUIREMENTS FOR IMPLEMENTATION GRANTS.—

22 The Secretary may make a grant under subsection (a)(2) 

23 only if—

24 (1) the Secretary has approved a plan developed 

25 pursuant to subsection (a)(1); 
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1 (2) the Governor of Alaska requests the grant 

2 funds and certifies in writing to the Secretary that 

3 there is a reasonable expectation that the construction 

4 of an Alaska gas pipeline system will commence with5 in 2 years after the date of such certification; 

6 (3) the Secretary of the Interior concurs in writ7 ing to the Secretary with the certification made under 

8 paragraph (2) after considering—

9 (A) the status of necessary State and Fed10 eral permits; 

11 (B) the availability of financing for the 

12 pipeline project; and 

13 (C) other relevant factors and cir14 cumstances. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

16 authorized to be appropriated to the Secretary of Labor

17 such sums as may be necessary, but not to exceed 

18 $20,000,000, to carry out this section. 

19 Subtitle B—Strategic Petroleum 

20 Reserve 

21 SEC. 2101. FULL CAPACITY OF STRATEGIC PETROLEUM RE22 SERVE. 

23 The President shall— 

24 (1) fill the Strategic Petroleum Reserve estab25 lished pursuant to part B of title I of the Energy Pol-
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1 icy and Conservation Act (42 U.S.C. 6231 et seq.) to 

2 full capacity as soon as practicable; 

3 (2) acquire petroleum for the Strategic Petro4 leum Reserve by the most practicable and cost-effec5 tive means, with consideration being given to domes6 tically produced petroleum, including the acquisition 

7 of crude oil the United States is entitled to receive in 

8 kind as royalties from production on Federal lands; 

9 and 

10 (3) ensure that the fill rate minimizes impacts 

11 on petroleum markets. 

12 SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION. 

13 (a) PLAN.—Not later than 180 days after the date of 

14 the enactment of this Act, the Secretary of Energy shall 

15 transmit to the Congress a plan for the expansion of the 

16 Strategic Petroleum Reserve to 1,000,000,000 barrels, in17 cluding—

18 (1) plans for the elimination of infrastructure 

19 impediments to maximum drawdown capability; 

20 (2) a schedule for the completion of all required 

21 environmental reviews; 

22 (3) provision for consultation with Federal and 

23 State environmental agencies; 

24 (4) a schedule and procedures for site selection; 

25 and 
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1 (5) anticipated annual budget requests. 

2 (b) CONSTRUCTION OF ADDITIONAL CAPACITY.—The 

3 Secretary of Energy shall acquire property and complete 

4 construction for the expansion of the Strategic Petroleum 

5 Reserve in accordance with the plan transmitted under sub6 section (a). 

7 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

8 authorized to be appropriated to the Secretary of Energy 

9 $1,500,000,000 for carrying out this section, to remain 

10 available until expended.

11 SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE 

12 STRATEGIC PETROLEUM RESERVE AND 

13 OTHER ENERGY PROGRAMS. 

14 (a) AMENDMENT TO TITLE I OF THE ENERGY POLICY

15 AND CONSERVATION ACT.—Title I of the Energy Policy and 

16 Conservation Act (42 U.S.C. 6211 et seq.) is amended—

17 (1) by striking section 166 (42 U.S.C. 6246) and 

18 inserting—

19 ‘‘AUTHORIZATION OF APPROPRIATIONS

20 ‘‘SEC. 166. There are authorized to be appropriated 

21 to the Secretary such sums as may be necessary to carry 

22 out this part and part D, to remain available until ex23 pended.’’; 

24 (2) by striking section 186 (42 U.S.C. 6250e); 

25 and 
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1 (3) by striking part E (42 U.S.C. 6251; relating 

2 to the expiration of title I of the Act). 

3 (b) AMENDMENT TO TITLE II OF THE ENERGY POLICY

4 AND CONSERVATION ACT.—Title II of the Energy Policy 

5 and Conservation Act (42 U.S.C. 6271 et seq.) is amend6 ed—

7 (1) by inserting before section 273 (42 U.S.C. 

8 6283) the following: 

9 ‘‘PART C—SUMMER FILL AND FUEL BUDGETING

10 PROGRAMS’’;

11 (2) by striking section 273(e) (42 U.S.C. 6283(e); 

12 relating to the expiration of summer fill and fuel 

13 budgeting programs); and 

14 (3) by striking part D (42 U.S.C. 6285; relating 

15 to the expiration of title II of the Act). 

16 (c) TECHNICAL AMENDMENTS.—The table of contents 

17 for the Energy Policy and Conservation Act is amended—

18 (1) by inserting after the items relating to part 

19 C of title I the following:

‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE

‘‘Sec. 181. Establishment. 

‘‘Sec. 182. Authority. 

‘‘Sec. 183. Conditions for release; plan. 

‘‘Sec. 184. Northeast Home Heating Oil Reserve Account. 

‘‘Sec. 185. Exemptions.’’;

20 (2) by amending the items relating to part C of 

21 title II to read as follows:
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‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS

‘‘Sec. 273. Summer fill and fuel budgeting programs.’’; and

1 (3) by striking the items relating to part D of 

2 title II. 

3 (d) AMENDMENT TO THE ENERGY POLICY AND CON4 SERVATION ACT.—Section 183(b)(1) of the Energy Policy 

5 and Conservation Act (42 U.S.C. 6250b(b)(1)) is amended 

6 by inserting ‘‘(considered as a heating season average)’’ 

7 after ‘‘mid-October through March’’. 

8 Subtitle C—Hydraulic Fracturing 

9 SEC. 2201. HYDRAULIC FRACTURING. 

10 Paragraph (1) of section 1421(d) of the Safe Drinking 

11 Water Act (42 U.S.C. 300h(d)) is amended to read as fol12 lows: 

13 ‘‘(1) The term ‘underground injection’—

14 ‘‘(A) means the subsurface emplacement of 

15 fluids by well injection; and 

16 ‘‘(B) excludes—

17 ‘‘(i) the underground injection of nat18 ural gas for purposes of storage; and 

19 ‘‘(ii) the underground injection of 

20 fluids or propping agents pursuant to hy21 draulic fracturing operations related to oil 

22 or gas production activities.’’. 
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1 Subtitle D—Unproven Oil and Nat2 ural Gas Reserves Recovery Pro3 gram 

4 SEC. 2301. PROGRAM. 

5 The Secretary shall carry out a program to dem6 onstrate technologies for the recovery of oil and natural gas 

7 reserves from reservoirs described in section 2302.

8 SEC. 2302. ELIGIBLE RESERVOIRS. 

9 The program under this subtitle shall only address oil 

10 and natural gas reservoirs with 1 or more of the following 

11 characteristics: 

12 (1) Complex geology involving rapid changes in 

13 the type and quality of the oil reservoir across the res14 ervoir. 

15 (2) Low reservoir pressure. 

16 (3) Unconventional natural gas reservoirs in 

17 coalbeds, tight sands, or shales. 

18 SEC. 2303. FOCUS AREAS. 

19 The program under this subtitle may focus on areas 

20 including coal-bed methane, deep drilling, natural gas pro21 duction from tight sands, natural gas production from gas 

22 shales, innovative production techniques (including hori23 zontal drilling, fracture detection methodologies, and three24 dimensional seismic), and enhanced recovery techniques. 
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1 SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES. 

2 Activities under this subtitle shall be carried out 

3 only—

4 (1) in—

5 (A) areas onshore in the United States on 

6 public land administered by the Secretary of the 

7 Interior available for oil and gas leasing, where 

8 consistent with applicable law and land use 

9 plans; and 

10 (B) areas onshore in the United States on 

11 State or private land, subject to applicable law; 

12 and 

13 (2) with the approval of the appropriate Federal 

14 or State land management agency or private land 

15 owner. 

16 SEC. 2305. PROGRAM ADMINISTRATION. 

17 (a) ROLE OF THE SECRETARY.—The Secretary shall 

18 have ultimate responsibility for, and oversight of, all aspects 

19 of the program under this subtitle. 

20 (b) ROLE OF THE PROGRAM CONSORTIUM.—

21 (1) IN GENERAL.—The Secretary shall contract 

22 with a consortium to—

23 (A) manage awards pursuant to subsection 

24 (e)(4); 

25 (B) make recommendations to the Secretary 

26 for project solicitations; 
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1 (C) disburse funds awarded under sub2 section (e) as directed by the Secretary in ac3 cordance with the annual plan under subsection 

4 (d); and 

5 (D) carry out other activities assigned to 

6 the program consortium by this section. 

7 (2) LIMITATION.—The Secretary may not assign 

8 any activities to the program consortium except as 

9 specifically authorized under this section. 

10 (3) CONFLICT OF INTEREST.—(A) The Secretary 

11 shall establish procedures—

12 (i) to ensure that each board member, offi13 cer, or employee of the program consortium who 

14 is in a decisionmaking capacity under subsection 

15 (e)(3) or (4) shall disclose to the Secretary any 

16 financial interests in, or financial relationships 

17 with, applicants for or recipients of awards 

18 under this section, including those of his or her 

19 spouse or minor child, unless such relationships 

20 or interests would be considered to be remote or 

21 inconsequential; and 

22 (ii) to require any board member, officer, or 

23 employee with a financial relationship or inter24 est disclosed under clause (i) to recuse himself or 

25 herself from any review under subsection (e)(3) 
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1 or oversight under subsection (e)(4) with respect 

2 to such applicant or recipient. 

3 (B) The Secretary may disqualify an applica4 tion or revoke an award under this section if a board 

5 member, officer, or employee has failed to comply 

6 with procedures required under subparagraph (A)(ii). 

7 (c) SELECTION OF THE PROGRAM CONSORTIUM.—

8 (1) IN GENERAL.—The Secretary shall select the 

9 program consortium through an open, competitive 

10 process. 

11 (2) MEMBERS.—The program consortium may 

12 include corporations and institutions of higher edu13 cation. The Secretary shall give preference in the se14 lection of the program consortium to applicants with 

15 broad representation from the various major oil and 

16 natural gas basins in the United States. After submit17 ting a proposal under paragraph (4), the program 

18 consortium may not add members without the consent 

19 of the Secretary. 

20 (3) TAX STATUS.—The program consortium shall 

21 be an entity that is exempt from tax under section 

22 501(c)(3) of the Internal Revenue Code of 1986. 

23 (4) SCHEDULE.—Not later than 90 days after 

24 the date of enactment of this Act, the Secretary shall 

25 solicit proposals for the creation of the program con-
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1 sortium, which must be submitted not less than 180 

2 days after the date of enactment of this Act. The Sec3 retary shall select the program consortium not later 

4 than 240 days after such date of enactment. 

5 (5) APPLICATION.—Applicants shall submit a 

6 proposal including such information as the Secretary 

7 may require. At a minimum, each proposal shall—

8 (A) list all members of the consortium; 

9 (B) fully describe the structure of the con10 sortium, including any provisions relating to in11 tellectual property; and 

12 (C) describe how the applicant would carry 

13 out the activities of the program consortium 

14 under this section. 

15 (6) ELIGIBILITY.—To be eligible to be selected as 

16 the program consortium, an applicant must be an en17 tity whose members collectively have demonstrated ca18 pabilities in planning and managing programs for 

19 the production of oil or natural gas. 

20 (7) CRITERION.—The Secretary may consider the 

21 amount of the fee an applicant proposes to receive 

22 under subsection (f) in selecting a consortium under 

23 this section. 

24 (d) ANNUAL PLAN.—
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1 (1) IN GENERAL.—The program under this sub2 title shall be carried out pursuant to an annual plan 

3 prepared by the Secretary in accordance with para4 graph (2).

5 (2) DEVELOPMENT.—(A) Before drafting an an6 nual plan under this subsection, the Secretary shall 

7 solicit specific written recommendations from the pro8 gram consortium for each element to be addressed in 

9 the plan, including those described in paragraph (4). 

10 The Secretary may request that the program consor11 tium submit its recommendations in the form of a 

12 draft annual plan. 

13 (B) The Secretary shall submit the recommenda14 tions of the program consortium under subparagraph 

15 (A) to the Advisory Committee for review, and the 

16 Advisory Committee shall provide to the Secretary 

17 written comments by a date determined by the Sec18 retary. The Secretary may also solicit comments from 

19 any other experts. 

20 (C) The Secretary shall consult regularly with 

21 the program consortium throughout the preparation 

22 of the annual plan. 

23 (3) PUBLICATION.—The Secretary shall transmit 

24 to the Congress and publish in the Federal Register 

25 the annual plan, along with any written comments 
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1 received under paragraph (2)(A) and (B). The annual 

2 plan shall be transmitted and published not later 

3 than 60 days after the date of enactment of an Act 

4 making appropriations for a fiscal year for the pro5 gram under this subtitle. 

6 (4) CONTENTS.—The annual plan shall describe 

7 the ongoing and prospective activities of the program 

8 under this subtitle and shall include—

9 (A) a list of any solicitations for awards 

10 that the Secretary plans to issue to carry out ac11 tivities, including the topics for such work, who 

12 would be eligible to apply, selection criteria, and 

13 the duration of awards; and 

14 (B) a description of the activities expected 

15 of the program consortium to carry out sub16 section (e)(4). 

17 (e) AWARDS.—

18 (1) IN GENERAL.—The Secretary shall make 

19 awards to carry out activities under the program 

20 under this subtitle. The program consortium shall not 

21 be eligible to receive such awards, but members of the 

22 program consortium may receive such awards. 

23 (2) PROPOSALS.—

24 (A) SOLICITATION.—The Secretary shall so25 licit proposals for awards under this subsection 
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1 in such manner and at such time as the Sec2 retary may prescribe, in consultation with the 

3 program consortium. 

4 (B) CONTENTS.—Each proposal submitted 

5 shall include the following: 

6 (i) An estimate of the potential 

7 unproven reserves in the reservoir, estab8 lished by a registered petroleum engineer. 

9 (ii) An estimate of the potential for 

10 success of the project. 

11 (iii) A detailed project plan. 

12 (iv) A detailed analysis of the costs as13 sociated with the project. 

14 (v) A time frame for project comple15 tion. 

16 (vi) Evidence that any lienholder on 

17 the project will subordinate its interests to 

18 the extent necessary to ensure that the Fed19 eral government receives its portion of any 

20 revenues pursuant to section 2308. 

21 (vii) Such other matters as the Sec22 retary considers appropriate. 

23 (3) REVIEW.—The Secretary shall make awards 

24 under this subsection through a competitive process, 

25 which shall include a review by individuals selected 
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1 by the Secretary. Such individuals shall include, for 

2 each application, Federal officials, the program con3 sortium, and non-Federal experts who are not board 

4 members, officers, or employees of the program consor5 tium or of a member of the program consortium. 

6 (4) OVERSIGHT.—(A) The program consortium 

7 shall oversee the implementation of awards under this 

8 subsection, consistent with the annual plan under 

9 subsection (d), including disbursing funds and moni10 toring activities carried out under such awards for 

11 compliance with the terms and conditions of the 

12 awards. 

13 (B) Nothing in subparagraph (A) shall limit the 

14 authority or responsibility of the Secretary to oversee 

15 awards, or limit the authority of the Secretary to re16 view or revoke awards. 

17 (C) The Secretary shall provide to the program 

18 consortium the information necessary for the program 

19 consortium to carry out its responsibilities under this 

20 paragraph. 

21 (f) FEE.—To compensate the program consortium for 

22 carrying out its activities under this section, the Secretary 

23 shall provide to the program consortium a fee in an amount 

24 not to exceed 7.5 percent of the amounts awarded under 

25 subsection (e) for each fiscal year. 
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1 (g) DISALLOWED EXPENSES.—No portion of any 

2 award shall be used by a recipient for general or adminis3 trative expenses of any kind. 

4 (h) AUDIT.—The Secretary shall retain an inde5 pendent, commercial auditor to determine the extent to 

6 which funds provided to the program consortium, and funds 

7 provided under awards made under subsection (e), have 

8 been expended in a manner consistent with the purposes 

9 and requirements of this subtitle. The auditor shall trans10 mit a report annually to the Secretary, who shall transmit 

11 the report to Congress, along with a plan to remedy any 

12 deficiencies cited in the report. 

13 SEC. 2306. ADVISORY COMMITTEE. 

14 (a) ESTABLISHMENT.—Not later than 270 days after 

15 the date of enactment of this Act, the Secretary shall estab16 lish an Advisory Committee. 

17 (b) MEMBERSHIP.—The Advisory Committee shall be 

18 composed of members appointed by the Secretary and in19 cluding—

20 (1) individuals with extensive experience or oper21 ational knowledge of oil and natural gas production, 

22 including independent oil and gas producers; 

23 (2) individuals broadly representative of oil and 

24 natural gas production; and 

25 (3) no individuals who are Federal employees. 
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1 (c) DUTIES.—The Advisory Committee shall advise the 

2 Secretary on the development and implementation of activi3 ties under this subtitle.

4 (d) COMPENSATION.—A member of the Advisory Com5 mittee shall serve without compensation but shall receive 

6 travel expenses, including per diem in lieu of subsistence, 

7 in accordance with applicable provisions under subchapter 

8 I of chapter 57 of title 5, United States Code. 

9 (e) PROHIBITION.—The Advisory Committee shall not 

10 make recommendations on funding awards to consortia or 

11 for specific projects. 

12 SEC. 2307. LIMITS ON PARTICIPATION. 

13 An entity shall be eligible to receive an award under 

14 this subtitle only if the Secretary finds—

15 (1) that the entity’s participation in the pro16 gram under this subtitle would be in the economic in17 terest of the United States; 

18 (2) that the entity is a United States-owned enti19 ty organized under the laws of the United States with 

20 production levels of less than 1,000 barrels per day of 

21 oil equivalent; and 

22 (3) that the entity has demonstrated that non23 governmental third party sources of financing are not 

24 available for the proposal project. 
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1 SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT. 

2 (a) INITIAL RATE.—Until the amount of a grant 

3 under this subtitle has been fully repaid to the Federal Gov4 ernment under this subsection, 95 percent of all revenues 

5 derived from increased incremental production attributable 

6 to participation in the program under this subtitle shall 

7 be paid to the Secretary by the purchaser of such increased 

8 production. 

9 (b) RATE AFTER REPAYMENT.—After the Federal Gov10 ernment has been fully repaid under subsection (a), 5 per11 cent of all revenues derived from increased incremental pro12 duction attributable to participation in the program under 

13 this subtitle shall be paid to the Secretary by the purchaser 

14 of such increased production. 

15 SEC. 2309. AUTHORIZATION OF APPROPRIATIONS. 

16 There are authorized to be appropriated to the Sec17 retary for carrying out this subtitle $100,000,000, to re18 main available until expended. 

19 SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS 

20 AND METHODOLOGIES. 

21 The results of any project undertaken pursuant to this 

22 subtitle and the methodologies used to achieve those results 

23 shall be made public by the Secretary. The methodologies 

24 used shall not be proprietary so that such methodologies 

25 may be used for other projects by persons not seeking 

26 awards pursuant to this subtitle. 
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1 SEC. 2311. SUNSET. 

2 The authority provided by this subtitle shall terminate 

3 on September 30, 2010. 

4 SEC. 2312. DEFINITIONS. 

5 In this subtitle: 

6 (1) PROGRAM CONSORTIUM.—The term ‘‘pro7 gram consortium’’ means the consortium selected 

8 under section 2305(c). 

9 (2) REMOTE OR INCONSEQUENTIAL.—The term 

10 ‘‘remote or inconsequential’’ has the meaning given 

11 that term in regulations issued by the Office of Gov12 ernment Ethics under section 208(b)(2) of title 18, 

13 United States Code. 

14 (3) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Energy.

16 Subtitle E—Miscellaneous 

17 SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUC18 TION PROJECTS. 

19 (a) AGENCY OF RECORD.—Any Federal administra20 tive agency proceeding that is an appeal or review of Fed21 eral authority for an interstate natural gas pipeline con22 struction project, including construction of natural gas stor23 age and liquefied natural gas facilities, shall use as its ex24 clusive record for all purposes the record compiled by the 

25 Federal Energy Regulatory Commission pursuant to such 
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1 Commission’s proceeding under section 7 of the Natural Gas 

2 Act. 

3 (b) SENSE OF THE CONGRESS.—It is the sense of the 

4 Congress that all Federal and State agencies with jurisdic5 tion over interstate natural gas pipeline construction ac6 tivities should coordinate their proceedings within the time 

7 frames established by the Federal Energy Regulatory Com8 mission while it is acting pursuant to section 7 of the Nat9 ural Gas Act to determine whether a proposed interstate 

10 natural gas pipeline is in the public convenience and neces11 sity. 

12 SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY. 

13 (a) ESTABLISHMENT OF SYSTEM.—Not later than 180 

14 days after the date of enactment of this Act, the Federal 

15 Energy Regulatory Commission shall issue rules author16 izing or establishing an electronic information system to 

17 provide the Commission and the public with timely access 

18 to such information as is necessary or appropriate to facili19 tate price transparency and participation in natural gas 

20 markets. Such system shall provide information about the 

21 market price of natural gas sold in interstate commerce. 

22 (b) DATA SUBJECT TO DISCLOSURE.—Rules issued 

23 under subsection (a) shall require public availability only 

24 of—

25 (1) aggregate data; and 
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1 (2) transaction-specific data that is otherwise re2 quired by the Federal Energy Regulatory Commission 

3 to be made public. 

4 (c) CIVIL PENALTY.—Any person who violates any 

5 provision of a rule issued under subsection (a) shall be sub6 ject to a civil penalty of not more than $1,000,000 for each 

7 day that such violation continues. Such penalty shall be 

8 assessed by the Federal Energy Regulatory Commission, 

9 after notice and opportunity for public hearing. In deter10 mining the amount of a proposed penalty, the Commission 

11 shall take into consideration the seriousness of the violation 

12 and the efforts of such person to remedy the violation in 

13 a timely manner. 

14 SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION 

15 DEFINED. 

16 Section 502 of the Federal Water Pollution Control Act 

17 (33 U.S.C. 1362) is amended by adding at the end the fol18 lowing:

19 ‘‘(24) The term ‘oil and gas exploration and produc20 tion’ means all field operations necessary for both explo21 ration and production of oil and gas, including activities 

22 necessary to prepare a site for drilling and for the move23 ment and placement of drilling equipment, whether or not 

24 such activities may be considered construction activities.’’.
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1 TITLE III—HYDROELECTRIC 

2 RELICENSING 

3 Subtitle A—Alternative Conditions 

4 SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS. 

5 (a) FEDERAL RESERVATIONS.—Section 4(e) of the 

6 Federal Power Act (16 U.S.C. 797(e)) is amended by insert7 ing after ‘‘adequate protection and utilization of such res8 ervation.’’ at the end of the first proviso the following: ‘‘The 

9 license applicant shall be entitled to a determination on the 

10 record, after opportunity for an agency trial-type hearing 

11 of any disputed issues of material fact, with respect to such 

12 conditions.’’. 

13 (b) FISHWAYS.—Section 18 of the Federal Power Act 

14 (16 U.S.C. 811) is amended by inserting after ‘‘and such 

15 fishways as may be prescribed by the Secretary of Com16 merce.’’ the following: ‘‘The license applicant shall be enti17 tled to a determination on the record, after opportunity for 

18 an agency trial-type hearing of any disputed issues of mate19 rial fact, with respect to such fishways.’’. 

20 (c) ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.—

21 Part I of the Federal Power Act (16 U.S.C. 791a et seq.) 

22 is amended by adding the following new section at the end 

23 thereof: 
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1 ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 

2 ‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 

3 person applies for a license for any project works within 

4 any reservation of the United States, and the Secretary of 

5 the department under whose supervision such reservation 

6 falls (referred to in this subsection as ‘the Secretary’) deems 

7 a condition to such license to be necessary under the first 

8 proviso of section 4(e), the license applicant may propose 

9 an alternative condition. 

10 ‘‘(2) Notwithstanding the first proviso of section 4(e), 

11 the Secretary shall accept the proposed alternative condi12 tion referred to in paragraph (1), and the Commission shall 

13 include in the license such alternative condition, if the Sec14 retary determines, based on substantial evidence provided 

15 by the license applicant or otherwise available to the Sec16 retary, that such alternative condition—

17 ‘‘(A) provides for the adequate protection and 

18 utilization of the reservation; and 

19 ‘‘(B) will either—

20 ‘‘(i) cost less to implement; or 

21 ‘‘(ii) result in improved operation of the 

22 project works for electricity production, 

23 as compared to the condition initially deemed nec24 essary by the Secretary. 

25 ‘‘(3) The Secretary shall submit into the public record 

26 of the Commission proceeding with any condition under 
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1 section 4(e) or alternative condition it accepts under this 

2 section, a written statement explaining the basis for such 

3 condition, and reason for not accepting any alternative con4 dition under this section. The written statement must dem5 onstrate that the Secretary gave equal consideration to the 

6 effects of the condition adopted and alternatives not accept7 ed on energy supply, distribution, cost, and use; flood con8 trol; navigation; water supply; and air quality (in addition 

9 to the preservation of other aspects of environmental qual10 ity); based on such information as may be available to the 

11 Secretary, including information voluntarily provided in 

12 a timely manner by the applicant and others. The Secretary 

13 shall also submit, together with the aforementioned written 

14 statement, all studies, data, and other factual information 

15 available to the Secretary and relevant to the Secretary’s 

16 decision. 

17 ‘‘(4) Nothing in this section shall prohibit other inter18 ested parties from proposing alternative conditions. 

19 ‘‘(5) If the Secretary does not accept an applicant’s 

20 alternative condition under this section, and the Commis21 sion finds that the Secretary’s condition would be incon22 sistent with the purposes of this part, or other applicable 

23 law, the Commission may refer the dispute to the Commis24 sion’s Dispute Resolution Service. The Dispute Resolution 

25 Service shall consult with the Secretary and the Commis-
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1 sion and issue a non-binding advisory within 90 days. The 

2 Secretary may accept the Dispute Resolution Service advi3 sory unless the Secretary finds that the recommendation 

4 will not adequately protect the reservation. The Secretary 

5 shall submit the advisory and the Secretary’s final written 

6 determination into the record of the Commission’s pro7 ceeding. 

8 ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 

9 the Secretary of the Interior or the Secretary of Commerce 

10 prescribes a fishway under section 18, the license applicant 

11 or licensee may propose an alternative to such prescription 

12 to construct, maintain, or operate a fishway. The alter13 native may include a fishway or an alternative to a 

14 fishway. 

15 ‘‘(2) Notwithstanding section 18, the Secretary of the 

16 Interior or the Secretary of Commerce, as appropriate, shall 

17 accept and prescribe, and the Commission shall require, the 

18 proposed alternative referred to in paragraph (1), if the 

19 Secretary of the appropriate department determines, based 

20 on substantial evidence provided by the licensee or otherwise 

21 available to the Secretary, that such alternative—

22 ‘‘(A) will be no less protective of the fish re23 sources than the fishway initially prescribed by the 

24 Secretary; and 

25 ‘‘(B) will either—
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1 ‘‘(i) cost less to implement; or 

2 ‘‘(ii) result in improved operation of the 

3 project works for electricity production, 

4 as compared to the fishway initially deemed necessary 

5 by the Secretary. 

6 ‘‘(3) The Secretary concerned shall submit into the 

7 public record of the Commission proceeding with any pre8 scription under section 18 or alternative prescription it ac9 cepts under this section, a written statement explaining the 

10 basis for such prescription, and reason for not accepting 

11 any alternative prescription under this section. The written 

12 statement must demonstrate that the Secretary gave equal 

13 consideration to the effects of the condition adopted and al14 ternatives not accepted on energy supply, distribution, cost, 

15 and use; flood control; navigation; water supply; and air 

16 quality (in addition to the preservation of other aspects of 

17 environmental quality); based on such information as may 

18 be available to the Secretary, including information volun19 tarily provided in a timely manner by the applicant and 

20 others. The Secretary shall also submit, together with the 

21 aforementioned written statement, all studies, data, and 

22 other factual information available to the Secretary and rel23 evant to the Secretary’s decision. 

24 ‘‘(4) Nothing in this section shall prohibit other inter25 ested parties from proposing alternative prescriptions.
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1 ‘‘(5) If the Secretary concerned does not accept an ap2 plicant’s alternative prescription under this section, and 

3 the Commission finds that the Secretary’s prescription 

4 would be inconsistent with the purposes of this part, or 

5 other applicable law, the Commission may refer the dispute 

6 to the Commission’s Dispute Resolution Service. The Dis7 pute Resolution Service shall consult with the Secretary and 

8 the Commission and issue a non-binding advisory within 

9 90 days. The Secretary may accept the Dispute Resolution 

10 Service advisory unless the Secretary finds that the rec11 ommendation will not adequately protect the fish resources. 

12 The Secretary shall submit the advisory and the Secretary’s 

13 final written determination into the record of the Commis14 sion’s proceeding.’’. 

15 Subtitle B—Additional Hydropower 

16 SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES. 

17 (a) INCENTIVE PAYMENTS.—For electric energy gen18 erated and sold by a qualified hydroelectric facility during 

19 the incentive period, the Secretary of Energy (referred to 

20 in this section as the ‘‘Secretary’’) shall make, subject to 

21 the availability of appropriations, incentive payments to 

22 the owner or operator of such facility. The amount of such 

23 payment made to any such owner or operator shall be as 

24 determined under subsection (e) of this section. Payments 

25 under this section may only be made upon receipt by the 
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1 Secretary of an incentive payment application which estab2 lishes that the applicant is eligible to receive such payment 

3 and which satisfies such other requirements as the Secretary 

4 deems necessary. Such application shall be in such form, 

5 and shall be submitted at such time, as the Secretary shall 

6 establish. 

7 (b) DEFINITIONS.—For purposes of this section: 

8 (1) QUALIFIED HYDROELECTRIC FACILITY.—The 

9 term ‘‘qualified hydroelectric facility’’ means a tur10 bine or other generating device owned or solely oper11 ated by a non-Federal entity which generates hydro12 electric energy for sale and which is added to an ex13 isting dam or conduit. 

14 (2) EXISTING DAM OR CONDUIT.—The term ‘‘ex15 isting dam or conduit’’ means any dam or conduit 

16 the construction of which was completed before the 

17 date of the enactment of this section and which does 

18 not require any construction or enlargement of im19 poundment or diversion structures (other than repair 

20 or reconstruction) in connection with the installation 

21 of a turbine or other generating device. 

22 (3) CONDUIT.—The term ‘‘conduit’’ has the same 

23 meaning as when used in section 30(a)(2) of the Fed24 eral Power Act. 
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1 The terms defined in this subsection shall apply without 

2 regard to the hydroelectric kilowatt capacity of the facility 

3 concerned, without regard to whether the facility uses a dam 

4 owned by a governmental or nongovernmental entity, and 

5 without regard to whether the facility begins operation on 

6 or after the date of the enactment of this section. 

7 (c) ELIGIBILITY WINDOW.—Payments may be made 

8 under this section only for electric energy generated from 

9 a qualified hydroelectric facility which begins operation 

10 during the period of 10 fiscal years beginning with the first 

11 full fiscal year occurring after the date of enactment of this 

12 subtitle. 

13 (d) INCENTIVE PERIOD.—A qualified hydroelectric fa14 cility may receive payments under this section for a period 

15 of 10 fiscal years (referred to in this section as the ‘‘incen16 tive period’’). Such period shall begin with the fiscal year 

17 in which electric energy generated from the facility is first 

18 eligible for such payments. 

19 (e) AMOUNT OF PAYMENT.—

20 (1) IN GENERAL.—Payments made by the Sec21 retary under this section to the owner or operator of 

22 a qualified hydroelectric facility shall be based on the 

23 number of kilowatt hours of hydroelectric energy gen24 erated by the facility during the incentive period. For 

25 any such facility, the amount of such payment shall 
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1 be 1.8 cents per kilowatt hour (adjusted as provided 

2 in paragraph (2)), subject to the availability of ap3 propriations under subsection (g), except that no fa4 cility may receive more than $750,000 in one cal5 endar year. 

6 (2) ADJUSTMENTS.—The amount of the payment 

7 made to any person under this section as provided in 

8 paragraph (1) shall be adjusted for inflation for each 

9 fiscal year beginning after calendar year 2003 in the 

10 same manner as provided in the provisions of section 

11 29(d)(2)(B) of the Internal Revenue Code of 1986, ex12 cept that in applying such provisions the calendar 

13 year 2003 shall be substituted for calendar year 1979. 

14 (f) SUNSET.—No payment may be made under this 

15 section to any qualified hydroelectric facility after the expi16 ration of the period of 20 fiscal years beginning with the 

17 first full fiscal year occurring after the date of enactment 

18 of this subtitle, and no payment may be made under this 

19 section to any such facility after a payment has been made 

20 with respect to such facility for a period of 10 fiscal years. 

21 (g) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary to carry out 

23 the purposes of this section $10,000,000 for each of the fiscal 

24 years 2004 through 2013.
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1 SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 

2 (a) INCENTIVE PAYMENTS.—The Secretary of Energy 

3 shall make incentive payments to the owners or operators 

4 of hydroelectric facilities at existing dams to be used to 

5 make capital improvements in the facilities that are di6 rectly related to improving the efficiency of such facilities 

7 by at least 3 percent. 

8 (b) LIMITATIONS.—Incentive payments under this sec9 tion shall not exceed 10 percent of the costs of the capital 

10 improvement concerned and not more than one payment 

11 may be made with respect to improvements at a single facil12 ity. No payment in excess of $750,000 may be made with 

13 respect to improvements at a single facility. 

14 (c) AUTHORIZATION.—There is authorized to be appro15 priated to carry out this section not more than $10,000,000 

16 for each of the fiscal years 2004 through 2013. 

17 SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS. 

18 Section 408(a)(6) of the Public Utility Regulatory 

19 Policies Act of 1978 is amended by striking ‘‘April 20, 

20 1977’’ and inserting ‘‘March 4, 2003’’. 

21 SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT 

22 EXISTING FEDERAL FACILITIES. 

23 (a) IN GENERAL.—The Secretary of Energy, in con24 sultation with the Secretary of the Interior and Secretary 

25 of the Army, shall conduct studies of the cost-effective oppor26 tunities to increase hydropower generation at existing feder-
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1 ally-owned or operated water regulation, storage, and con2 veyance facilities. Such studies shall be completed within 

3 two years after the date of enactment of this subtitle and 

4 transmitted to the Committee on Commerce of the House 

5 of Representatives and the Committee on Energy and Nat6 ural Resources of the Senate. An individual study shall be 

7 prepared for each of the Nation’s principal river basins. 

8 Each such study shall identify and describe with specificity 

9 the following matters: 

10 (1) Opportunities to improve the efficiency of hy11 dropower generation at such facilities through, but 

12 not limited to, mechanical, structural, or operational 

13 changes. 

14 (2) Opportunities to improve the efficiency of the 

15 use of water supplied or regulated by Federal projects 

16 where such improvement could, in the absence of legal 

17 or administrative constraints, make additional water 

18 supplies available for hydropower generation or re19 duce project energy use. 

20 (3) Opportunities to create additional hydro21 power generating capacity at existing facilities 

22 through, but not limited to, the construction of addi23 tional generating facilities, the uprating of generators 

24 and turbines, and the construction of pumped storage 

25 facilities. 
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1 (4) Preliminary assessment of the costs and the 

2 economic and environmental consequences of such 

3 measures. 

4 (b) PREVIOUS STUDIES.—If studies of the type re5 quired by subsection (a) have been prepared by any agency 

6 of the United States and published within the five years 

7 prior to the date of enactment of this subtitle, the Secretary 

8 of Energy may choose not to perform new studies and incor9 porate the information in such studies into the studies re10 quired by subsection (a). 

11 (c) AUTHORIZATION.—There is authorized to be appro12 priated such sums as may be necessary to carry out the 

13 purposes of this section.

14 TITLE IV—NUCLEAR MATTERS 

15 Subtitle A—Price-Anderson Act 

16 Amendments 

17 SEC. 4001. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Price-Anderson 

19 Amendments Act of 2003’’. 

20 SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY. 

21 (a) INDEMNIFICATION OF NUCLEAR REGULATORY

22 COMMISSION LICENSEES.—Section 170 c. of the Atomic En23 ergy Act of 1954 (42 U.S.C. 2210(c)) is amended—

24 (1) in the subsection heading, by striking ‘‘LI25 CENSES’’ and inserting ‘‘LICENSEES’’; and 
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1 (2) by striking ‘‘December 31, 2003’’ each place 

2 it appears and inserting ‘‘August 1, 2017’’. 

3 (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY

4 CONTRACTORS.—Section 170 d.(1)(A) of the Atomic Energy 

5 Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by strik6 ing ‘‘December 31, 2004’’ and inserting ‘‘August 1, 2017’’. 

7 (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL

8 INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 

9 of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘August 

10 1, 2002’’ each place it appears and inserting ‘‘August 1, 

11 2017’’. 

12 SEC. 4003. MAXIMUM ASSESSMENT. 

13 Section 170 of the Atomic Energy Act of 1954 (42 

14 U.S.C. 2210) is amended—

15 (1) in subsection b.(1), in the second proviso of 

16 the third sentence—

17 (A) by striking ‘‘$63,000,000’’ and inserting 

18 ‘‘$94,000,000’’; and 

19 (B) by striking ‘‘$10,000,000 in any 1 

20 year’’ and inserting ‘‘$15,000,000 in any 1 year 

21 (subject to adjustment for inflation under sub22 section t.)’’; and 

23 (2) in subsection t.—

24 (A) by inserting ‘‘total and annual’’ after 

25 ‘‘amount of the maximum’’; 
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1 (B) by striking ‘‘the date of the enactment 

2 of the Price-Anderson Amendments Act of 1988’’ 

3 and inserting ‘‘July 1, 2002’’; and 

4 (C) by striking ‘‘such date of enactment’’ 

5 and inserting ‘‘July 1, 2002’’. 

6 SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT. 

7 (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY

8 CONTRACTORS.—Section 170 d. of the Atomic Energy Act 

9 of 1954 (42 U.S.C. 2210(d)) is amended by striking para10 graph (2) and inserting the following: 

11 ‘‘(2) In an agreement of indemnification entered into 

12 under paragraph (1), the Secretary—

13 ‘‘(A) may require the contractor to provide and 

14 maintain the financial protection of such a type and 

15 in such amounts as the Secretary shall determine to 

16 be appropriate to cover public liability arising out of 

17 or in connection with the contractual activity; and 

18 ‘‘(B) shall indemnify the persons indemnified 

19 against such liability above the amount of the finan20 cial protection required, in the amount of 

21 $10,000,000,000 (subject to adjustment for inflation 

22 under subsection t.), in the aggregate, for all persons 

23 indemnified in connection with the contract and for 

24 each nuclear incident, including such legal costs of the 

25 contractor as are approved by the Secretary.’’.
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1 (b) CONTRACT AMENDMENTS.—Section 170 d. of the 

2 Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended 

3 by striking paragraph (3) and inserting the following: 

4 ‘‘(3) All agreements of indemnification under which 

5 the Department of Energy (or its predecessor agencies) may 

6 be required to indemnify any person under this section shall 

7 be deemed to be amended, on the date of enactment of the 

8 Price-Anderson Amendments Act of 2003, to reflect the 

9 amount of indemnity for public liability and any applica10 ble financial protection required of the contractor under this 

11 subsection.’’. 

12 (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 

13 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 

14 amended—

15 (1) by striking ‘‘the maximum amount of finan16 cial protection required under subsection b. or’’; and 

17 (2) by striking ‘‘paragraph (3) of subsection d., 

18 whichever amount is more’’ and inserting ‘‘paragraph 

19 (2) of subsection d.’’. 

20 SEC. 4005. INCIDENTS OUTSIDE THE UNITED STATES. 

21 (a) AMOUNT OF INDEMNIFICATION.—Section 170 d.(5) 

22 of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5)) 

23 is amended by striking ‘‘$100,000,000’’ and inserting 

24 ‘‘$500,000,000’’. 
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1 (b) LIABILITY LIMIT.—Section 170 e.(4) of the Atomic 

2 Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by 

3 striking ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. 

4 SEC. 4006. REPORTS. 

5 Section 170 p. of the Atomic Energy Act of 1954 (42 

6 U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 

7 and inserting ‘‘August 1, 2013’’. 

8 SEC. 4007. INFLATION ADJUSTMENT. 

9 Section 170 t. of the Atomic Energy Act of 1954 (42 

10 U.S.C. 2210(t)) is amended—

11 (1) by redesignating paragraph (2) as para12 graph (3); and 

13 (2) by adding after paragraph (1) the following:

14 ‘‘(2) The Secretary shall adjust the amount of indem15 nification provided under an agreement of indemnification 

16 under subsection d. not less than once during each 5-year 

17 period following July 1, 2002, in accordance with the aggre18 gate percentage change in the Consumer Price Index 

19 since—

20 ‘‘(A) that date, in the case of the first adjustment 

21 under this paragraph; or 

22 ‘‘(B) the previous adjustment under this para23 graph.’’. 
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1 SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR RE2 ACTORS. 

3 Section 170 b. of the Atomic Energy Act of 1954 (42 

4 U.S.C. 2210(b)) is amended by adding at the end the fol5 lowing new paragraph: 

6 ‘‘(5)(A) For purposes of this section only, the Commis7 sion shall consider a combination of facilities described in 

8 subparagraph (B) to be a single facility having a rated ca9 pacity of 100,000 electrical kilowatts or more. 

10 ‘‘(B) A combination of facilities referred to in subpara11 graph (A) is 2 or more facilities located at a single site, 

12 each of which has a rated capacity of 100,000 electrical kilo13 watts or more but not more than 300,000 electrical kilo14 watts, with a combined rated capacity of not more than 

15 1,300,000 electrical kilowatts.’’. 

16 SEC. 4009. APPLICABILITY. 

17 The amendments made by sections 4003, 4004, and 

18 4005 do not apply to a nuclear incident that occurs before 

19 the date of enactment of this Act.

20 SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED 

21 STATES GOVERNMENT OF LIABILITY FOR 

22 CERTAIN FOREIGN ACCIDENTS. 

23 Section 170 of the Atomic Energy Act of 1954 (42 

24 U.S.C. 2210) is amended by adding at the end the following 

25 new subsection: 
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1 ‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR

2 CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this sec3 tion or any other provision of law, no officer of the United 

4 States or of any department, agency, or instrumentality of 

5 the United States Government may enter into any contract 

6 or other arrangement, or into any amendment or modifica7 tion of a contract or other arrangement, the purpose or ef8 fect of which would be to directly or indirectly impose li9 ability on the United States Government, or any depart10 ment, agency, or instrumentality of the United States Gov11 ernment, or to otherwise directly or indirectly require an 

12 indemnity by the United States Government, for nuclear 

13 accidents occurring in connection with the design, construc14 tion, or operation of a production facility or utilization fa15 cility in any country whose government has been identified 

16 by the Secretary of State as engaged in state sponsorship 

17 of terrorist activities (specifically including any country the 

18 government of which, as of September 11, 2001, had been 

19 determined by the Secretary of State under section 620A(a) 

20 of the Foreign Assistance Act of 1961, section 6(j)(1) of the 

21 Export Administration Act of 1979, or section 40(d) of the 

22 Arms Export Control Act to have repeatedly provided sup23 port for acts of international terrorism).’’.
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1 SEC. 4011. SECURE TRANSFER OF NUCLEAR MATERIALS. 

2 (a) AMENDMENT.—Chapter 14 of the Atomic Energy 

3 Act of 1954 (42 U.S.C. 2201–2210b) is amended by adding 

4 at the end the following new section: 

5 ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATE6 RIALS.—

7 ‘‘a. The Nuclear Regulatory Commission shall establish 

8 a system to ensure that, with respect to activities by any 

9 party pursuant to a license issued under this Act—

10 ‘‘(1) materials described in subsection b., when 

11 transferred or received in the United States—

12 ‘‘(A) from a facility licensed by the Nuclear 

13 Regulatory Commission; 

14 ‘‘(B) from a facility licensed by an agree15 ment State; or 

16 ‘‘(C) from a country with whom the United 

17 States has an agreement for cooperation under 

18 section 123, 

19 are accompanied by a manifest describing the type 

20 and amount of materials being transferred; 

21 ‘‘(2) each individual transferring or accom22 panying the transfer of such materials has been sub23 ject to a security background check by appropriate 

24 Federal entities; and 

25 ‘‘(3) such materials are not transferred to or re26 ceived at a destination other than a facility licensed
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1 by the Nuclear Regulatory Commission or an agree2 ment State under this Act or other appropriate Fed3 eral facility, or a destination outside the United 

4 States in a country with whom the United States has 

5 an agreement for cooperation under section 123. 

6 ‘‘b. Except as otherwise provided by the Commission 

7 by regulation, the materials referred to in subsection a. are 

8 byproduct materials, source materials, special nuclear ma9 terials, high-level radioactive waste, spent nuclear fuel, 

10 transuranic waste, and low-level radioactive waste (as de11 fined in section 2(16) of the Nuclear Waste Policy Act of 

12 1982 (42 U.S.C. 10101(16))).’’. 

13 (b) REGULATIONS.—Not later than 1 year after the 

14 date of the enactment of this Act, and from time to time 

15 thereafter as it considers necessary, the Nuclear Regulatory 

16 Commission shall issue regulations identifying radioactive 

17 materials that, consistent with the protection of public 

18 health and safety and the common defense and security, are 

19 appropriate exceptions to the requirements of section 170C 

20 of the Atomic Energy Act of 1954, as added by subsection 

21 (a) of this section. 

22 (c) EFFECTIVE DATE.—The amendment made by sub23 section (a) shall take effect upon the issuance of regulations 

24 under subsection (b). 
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1 (d) EFFECT ON OTHER LAW.—Nothing in this section 

2 or the amendment made by this section shall waive, modify, 

3 or affect the application of chapter 51 of title 49, United 

4 States Code, part A of subtitle V of title 49, United States 

5 Code, part B of subtitle VI of title 49, United States Code, 

6 and title 23, United States Code. 

7 (e) TABLE OF SECTIONS AMENDMENT.—The table of 

8 sections for chapter 14 of the Atomic Energy Act of 1954 

9 is amended by adding at the end the following new item:

‘‘Sec. 170C. Secure transfer of nuclear materials.’’.

10 SEC. 4012. NUCLEAR FACILITY THREATS. 

11 (a) STUDY.—The President, in consultation with the 

12 Nuclear Regulatory Commission and other appropriate 

13 Federal, State, and local agencies and private entities, shall 

14 conduct a study to identify the types of threats that pose 

15 an appreciable risk to the security of the various classes 

16 of facilities licensed by the Nuclear Regulatory Commission 

17 under the Atomic Energy Act of 1954. Such study shall take 

18 into account, but not be limited to—

19 (1) the events of September 11, 2001; 

20 (2) an assessment of physical, cyber, biochemical, 

21 and other terrorist threats; 

22 (3) the potential for attack on facilities by mul23 tiple coordinated teams of a large number of individ24 uals; 
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1 (4) the potential for assistance in an attack from 

2 several persons employed at the facility; 

3 (5) the potential for suicide attacks; 

4 (6) the potential for water-based and air-based 

5 threats; 

6 (7) the potential use of explosive devices of con7 siderable size and other modern weaponry; 

8 (8) the potential for attacks by persons with a 

9 sophisticated knowledge of facility operations; 

10 (9) the potential for fires, especially fires of long 

11 duration; and 

12 (10) the potential for attacks on spent fuel ship13 ments by multiple coordinated teams of a large num14 ber of individuals. 

15 (b) SUMMARY AND CLASSIFICATION REPORT.—Not 

16 later than 180 days after the date of the enactment of this 

17 Act, the President shall transmit to the Congress and the 

18 Nuclear Regulatory Commission a report—

19 (1) summarizing the types of threats identified 

20 under subsection (a); and 

21 (2) classifying each type of threat identified 

22 under subsection (a), in accordance with existing laws 

23 and regulations, as either—

24 (A) involving attacks and destructive acts, 

25 including sabotage, directed against the facility 
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1 by an enemy of the United States, whether a for2 eign government or other person, or otherwise 

3 falling under the responsibilities of the Federal 

4 Government; or 

5 (B) involving the type of risks that Nuclear 

6 Regulatory Commission licensees should be re7 sponsible for guarding against. 

8 (c) FEDERAL ACTION REPORT.—Not later than 90 

9 days after the date on which a report is transmitted under 

10 subsection (b), the President shall transmit to the Congress 

11 a report on actions taken, or to be taken, to address the 

12 types of threats identified under subsection (b)(2)(A). Such 

13 report may include a classified annex as appropriate. 

14 (d) REGULATIONS.—Not later than 270 days after the 

15 date on which a report is transmitted under subsection (b), 

16 the Nuclear Regulatory Commission shall issue regulations, 

17 including changes to the design basis threat, to ensure that 

18 licensees address the threats identified under subsection 

19 (b)(2)(B). 

20 (e) PHYSICAL SECURITY PROGRAM.—The Nuclear 

21 Regulatory Commission shall establish an operational safe22 guards response evaluation program that ensures that the 

23 physical protection capability and operational safeguards 

24 response for sensitive nuclear facilities, as determined by 

25 the Commission consistent with the protection of public 
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1 health and the common defense and security, shall be tested 

2 periodically through Commission approved or designed, ob3 served, and evaluated force-on-force exercises to determine 

4 whether the ability to defeat the design basis threat is being 

5 maintained. For purposes of this subsection, the term ‘‘sen6 sitive nuclear facilities’’ includes at a minimum commer7 cial nuclear power plants, including associated spent fuel 

8 storage facilities, spent fuel storage pools and dry cask stor9 age at closed reactors, independent spent fuel storage facili10 ties and geologic repository operations areas, category I fuel 

11 cycle facilities, and gaseous diffusion plants. 

12 (f) CONTROL OF INFORMATION.—In carrying out this 

13 section, the President and the Nuclear Regulatory Commis14 sion shall control the dissemination of restricted data, safe15 guards information, and other classified national security 

16 information in a manner so as to ensure the common de17 fense and security, consistent with chapter 12 of the Atomic 

18 Energy Act of 1954. 

19 SEC. 4013. UNREASONABLE RISK CONSULTATION. 

20 Section 170 of the Atomic Energy Act of 1954 (42 

21 U.S.C. 2210) is amended by adding at the end the following 

22 new subsection: 

23 ‘‘v. UNREASONABLE RISK CONSULTATION.—(1) Before 

24 entering into an agreement of indemnification under this 

25 section with respect to a utilization facility, the Nuclear
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1 Regulatory Commission shall consult with the Assistant to 

2 the President for Homeland Security (or any successor offi3 cial) concerning whether the location of the proposed facil4 ity and the design of that type of facility ensure that the 

5 facility provides for adequate protection of public health 

6 and safety if subject to a terrorist attack. 

7 ‘‘(2) Before issuing a license or a license renewal for 

8 a sensitive nuclear facility, the Nuclear Regulatory Com9 mission shall consult with the Secretary of Homeland Secu10 rity or his designee concerning the emergency evacuation 

11 plan for the communities living near the sensitive nuclear 

12 facility. For purposes of this paragraph, the term ‘sensitive 

13 nuclear facility’ has the meaning given that term in section 

14 4012 of the Energy Policy Act of 2003.’’. 

15 SEC. 4014. FINANCIAL ACCOUNTABILITY. 

16 (a) AMENDMENT.—Section 170 of the Atomic Energy 

17 Act of 1954 (42 U.S.C. 2210) is amended by adding at the 

18 end the following new subsection: 

19 ‘‘w. FINANCIAL ACCOUNTABILITY.—(1) Notwith20 standing subsection d., the Attorney General may bring an 

21 action in the appropriate United States district court to 

22 recover from a contractor of the Secretary (or subcontractor 

23 or supplier of such contractor) amounts paid by the Federal 

24 Government under an agreement of indemnification under 

25 subsection d. for public liability resulting from conduct 
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1 which constitutes intentional misconduct of any corporate 

2 officer, manager, or superintendent of such contractor (or 

3 subcontractor or supplier of such contractor). 

4 ‘‘(2) The Attorney General may recover under para5 graph (1) an amount not to exceed the amount of the profit 

6 derived by the defendant from the contract. 

7 ‘‘(3) No amount recovered from any contractor (or sub8 contractor or supplier of such contractor) under paragraph 

9 (1) may be reimbursed directly or indirectly by the Depart10 ment of Energy. 

11 ‘‘(4) Paragraph (1) shall not apply to any nonprofit 

12 entity conducting activities under contract for the Sec13 retary. 

14 ‘‘(5) No waiver of a defense required under this section 

15 shall prevent a defendant from asserting such defense in an 

16 action brought under this subsection. 

17 ‘‘(6) The Secretary shall, by rule, define the terms 

18 ‘profit’ and ‘nonprofit entity’ for purposes of this sub19 section. Such rulemaking shall be completed not later than 

20 180 days after the date of the enactment of this subsection.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by this 

22 section shall not apply to any agreement of indemnification 

23 entered into under section 170 d. of the Atomic Energy Act 

24 of 1954 (42 U.S.C. 2210(d)) before the date of the enactment 

25 of this Act. 
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1 SEC. 4015. CIVIL PENALTIES. 

2 (a) REPEAL OF AUTOMATIC REMISSION.—Section 

3 234A b. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 

4 2282a(b)(2)) is amended by striking the last sentence. 

5 (b) LIMITATION FOR NONPROFIT INSTITUTIONS.—Sub6 section d. of section 234A of the Atomic Energy Act of 1954 

7 (42 U.S.C. 2282a(d)) is amended to read as follows: 

8 ‘‘d. Notwithstanding subsection a., a civil penalty for 

9 a violation under subsection a. shall not exceed the amount 

10 of any discretionary fee paid under the contract under 

11 which such violation occurs for any nonprofit contractor, 

12 subcontractor, or supplier—

13 ‘‘(1) described in section 501(c)(3) of the Inter14 nal Revenue Code of 1986 and exempt from tax under 

15 section 501(a) of such Code; or 

16 ‘‘(2) identified by the Secretary by rule as ap17 propriate to be treated the same under this subsection 

18 as an entity described in paragraph (1), consistent 

19 with the purposes of this section.’’. 

20 (c) EFFECTIVE DATE.—The amendments made by this 

21 section shall not apply to any violation of the Atomic En22 ergy Act of 1954 occurring under a contract entered into 

23 before the date of the enactment of this Act. 

24 (d) RULEMAKING.—Not later than 6 months after the 

25 date of the enactment of this Act, the Secretary of Energy 
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1 shall issue a rule for the implementation of the amendment 

2 made by subsection (b). 

3 Subtitle B—Miscellaneous Matters 

4 SEC. 4021. LICENSES. 

5 Section 103 c. of the Atomic Energy Act of 1954 (42 

6 U.S.C. 2133(c)) is amended by inserting ‘‘from the author7 ization to commence operations’’ after ‘‘forty years’’. 

8 SEC. 4022. NUCLEAR REGULATORY COMMISSION MEETINGS. 

9 If a quorum of the Nuclear Regulatory Commission 

10 gathers to discuss official Commission business the discus11 sions shall be recorded, and the Commission shall notify the 

12 public of such discussions within 15 days after they occur. 

13 The Commission shall promptly make a transcript of the 

14 recording available to the public on request, except to the 

15 extent that public disclosure is exempted or prohibited by 

16 law. This section shall not apply to a meeting, within the 

17 meaning of that term under section 552b(a)(2) of title 5, 

18 United States Code. 

19 SEC. 4023. NRC TRAINING PROGRAM. 

20 (a) IN GENERAL.—In order to maintain the human 

21 resource investment and infrastructure of the United States 

22 in the nuclear sciences, health physics, and engineering 

23 fields, in accordance with the statutory authorities of the 

24 Commission relating to the civilian nuclear energy pro25 gram, the Nuclear Regulatory Commission shall carry out 
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1 a training and fellowship program to address shortages of 

2 individuals with critical nuclear safety regulatory skills. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—

4 (1) IN GENERAL.—There are authorized to be ap5 propriated to carry out this section $1,000,000 for 

6 each of fiscal years 2004 through 2007. 

7 (2) AVAILABILITY.—Funds made available under 

8 paragraph (1) shall remain available until expended. 

9 SEC. 4024. COST RECOVERY FROM GOVERNMENT AGENCIES. 

10 Section 161 w. of the Atomic Energy Act of 1954 (42 

11 U.S.C. 2201(w)) is amended—

12 (1) by striking ‘‘for or is issued’’ and all that fol13 lows through ‘‘1702’’ and inserting ‘‘to the Commis14 sion for, or is issued by the Commission, a license or 

15 certificate’’; 

16 (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 

17 and 

18 (3) by striking ‘‘, of applicants for, or holders of, 

19 such licenses or certificates’’. 

20 SEC. 4025. ELIMINATION OF PENSION OFFSET. 

21 Section 161 of the Atomic Energy Act of 1954 (42 

22 U.S.C. 2201) is amended by adding at the end the following: 

23 ‘‘y. exempt from the application of sections 8344 

24 and 8468 of title 5, United States Code, an annuitant 

25 who was formerly an employee of the Commission
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1 who is hired by the Commission as a consultant, if 

2 the Commission finds that the annuitant has a skill 

3 that is critical to the performance of the duties of the 

4 Commission.’’. 

5 SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOY6 EES. 

7 Section 161 k. of the Atomic Energy Act of 1954 (42 

8 U.S.C. 2201(k)) is amended to read as follows: 

9 ‘‘k. authorize such of its members, officers, and 

10 employees as it deems necessary in the interest of the 

11 common defense and security to carry firearms while 

12 in the discharge of their official duties. The Commis13 sion may also authorize—

14 ‘‘(1) such of those employees of its contrac15 tors and subcontractors (at any tier) engaged in 

16 the protection of property under the jurisdiction 

17 of the United States located at facilities owned 

18 by or contracted to the United States or being 

19 transported to or from such facilities as it deems 

20 necessary in the interests of the common defense 

21 and security; and 

22 ‘‘(2) such of those employees of persons li23 censed or certified by the Commission (including 

24 employees of contractors of licensees or certificate 

25 holders) engaged in the protection of property of 
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1 (A) facilities owned or operated by a Commis2 sion licensee or certificate holder that are des3 ignated by the Commission, or (B) property of 

4 significance to the common defense and security 

5 located at facilities owned or operated by a Com6 mission licensee or certificate holder or being 

7 transported to or from such facilities; 

8 to carry firearms while in the discharge of their offi9 cial duties. A person authorized to carry firearms 

10 under this subsection may, while in the performance 

11 of, and in connection with, official duties, make ar12 rests without warrant for any offense against the 

13 United States committed in that person’s presence or 

14 for any felony cognizable under the laws of the United 

15 States if that person has reasonable grounds to believe 

16 that the individual to be arrested has committed or 

17 is committing such felony. An employee of a con18 tractor or subcontractor or of a Commission licensee 

19 or certificate holder (or a contractor of a licensee or 

20 certificate holder) authorized to carry firearms under 

21 this subsection may make such arrests only when the 

22 individual to be arrested is within, or in direct flight 

23 from, the area of such offense. A person granted au24 thority to make arrests by this subsection may exer25 cise that authority only in the enforcement of laws re-
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1 garding the property of the United States in the cus2 tody of the Department of Energy, the Nuclear Regu3 latory Commission, or a contractor of the Department 

4 of Energy or Nuclear Regulatory Commission or of a 

5 licensee or certificate holder of the Commission, laws 

6 applicable to facilities owned or operated by a Com7 mission licensee or certificate holder that are des8 ignated by the Commission pursuant to this sub9 section and property of significance to the common 

10 defense and security that is in the custody of a li11 censee or certificate holder or a contractor of a li12 censee or certificate holder of the Commission, or any 

13 provision of this Act that may subject an offender to 

14 a fine, imprisonment, or both. The arrest authority 

15 conferred by this subsection is in addition to any ar16 rest authority under other laws. The Secretary and 

17 the Commission, with the approval of the Attorney 

18 General, shall issue guidelines to implement this sub19 section;’’. 

20 SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS 

21 WEAPONS. 

22 Section 229 a. of the Atomic Energy Act of 1954 (42 

23 U.S.C. 2278a(a)) is amended by adding after ‘‘custody of 

24 the Commission’’ the following: ‘‘or subject to its licensing 
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1 authority or to certification by the Commission under this 

2 Act or any other Act’’. 

3 SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 

4 Section 236 a. of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2284(a)) is amended to read as follows: 

6 ‘‘a. Any person who intentionally and willfully de7 stroys or causes physical damage to, or who intentionally 

8 and willfully attempts to destroy or cause physical damage 

9 to—

10 ‘‘(1) any production facility or utilization facil11 ity licensed under this Act; 

12 ‘‘(2) any nuclear waste storage, treatment, or 

13 disposal facility licensed under this Act; 

14 ‘‘(3) any nuclear fuel for a utilization facility li15 censed under this Act or any spent nuclear fuel from 

16 such a facility; 

17 ‘‘(4) any uranium enrichment or nuclear fuel 

18 fabrication facility licensed or certified by the Nuclear 

19 Regulatory Commission; or 

20 ‘‘(5) any production, utilization, waste storage, 

21 waste treatment, waste disposal, uranium enrichment, 

22 or nuclear fuel fabrication facility subject to licensing 

23 or certification under this Act during its construction 

24 where the destruction or damage caused or attempted 
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1 to be caused could affect public health and safety dur2 ing the operation of the facility, 

3 shall be fined not more than $1,000,000 or imprisoned for 

4 up to life in prison without parole, or both.’’. 

5 SEC. 4029. COOPERATIVE RESEARCH AND DEVELOPMENT 

6 AND SPECIAL DEMONSTRATION PROJECTS 

7 FOR THE URANIUM MINING INDUSTRY. 

8 (a) AUTHORIZATION OF APPROPRIATIONS.—There are 

9 authorized to be appropriated to the Secretary of Energy 

10 $10,000,000 for each of fiscal years 2004, 2005, and 2006 

11 for—

12 (1) cooperative, cost-shared agreements between 

13 the Department of Energy and domestic uranium 

14 producers to identify, test, and develop improved in 

15 situ leaching mining technologies, including low-cost 

16 environmental restoration technologies that may be 

17 applied to sites after completion of in situ leaching 

18 operations; and 

19 (2) funding for competitively selected demonstra20 tion projects with domestic uranium producers relat21 ing to—

22 (A) enhanced production with minimal en23 vironmental impacts; 

24 (B) restoration of well fields; and
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1 (C) decommissioning and decontamination 

2 activities. 

3 (b) DOMESTIC URANIUM PRODUCER.—For purposes of 

4 this section, the term ‘‘domestic uranium producer’’ has the 

5 meaning given that term in section 1018(4) of the Energy 

6 Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except that the 

7 term shall not include any producer that has not produced 

8 uranium from domestic reserves on or after July 30, 1998, 

9 in Colorado, Nebraska, Texas, Utah, or Wyoming. 

10 SEC. 4030. URANIUM SALES. 

11 (a) RESTRICTIONS ON INVENTORY SALES.—Section 

12 3112(d) of the USEC Privatization Act (42 U.S.C. 2297h–

13 10(d)) is amended to read as follows: 

14 ‘‘(d) INVENTORY SALES.—(1) In addition to the trans15 fers and sales authorized under subsections (b), (c), and (e), 

16 the Secretary of Energy or the Secretary of the Army may 

17 transfer or sell uranium subject to paragraph (2). 

18 ‘‘(2) Except as provided in subsections (b), (c), and 

19 (e), no sale or transfer of uranium shall be made under 

20 this subsection by the Secretary of Energy or the Secretary 

21 of the Army unless—

22 ‘‘(A) the President determines that the material 

23 is not necessary for national security needs; 
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1 ‘‘(B) the price paid to the appropriate Secretary, 

2 if the transaction is a sale, will not be less that the 

3 fair market value of the material; and 

4 ‘‘(C) the sale or transfer to end users is made 

5 pursuant to a contract of at least 3 years duration. 

6 ‘‘(3) The Secretary of Energy shall not make any 

7 transfer or sale of uranium under this subsection that would 

8 cause the total amount of uranium transferred or sold pur9 suant to this subsection that is delivered for consumption 

10 by end users to exceed—

11 ‘‘(A) 3 million pounds of U3O8 equivalent in fis12 cal year 2004, 2005, 2006, 2007, 2008, or 2009; 

13 ‘‘(B) 5 million pounds of U3O8 equivalent in fis14 cal year 2010 or 2011; 

15 ‘‘(C) 7 million pounds of U3O8 equivalent in fis16 cal year 2012; and 

17 ‘‘(D) 10 million pounds of U3O8 equivalent in 

18 fiscal year 2013 or any fiscal year thereafter. 

19 ‘‘(4) For the purposes of this subsection, the recovery 

20 of uranium from uranium bearing materials transferred or 

21 sold by the Secretary of Energy or the Secretary of the 

22 Army to the domestic uranium industry shall be the pre23 ferred method of making uranium available. The recovered 

24 uranium shall be counted against the annual maximum de-
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1 liveries set for in this section, when such uranium is sold 

2 to end users.’’. 

3 (b) TRANSFERS TO CORPORATION.—Section 3112 of 

4 the USEC Privatization Act (42 U.S.C. 2297h–10) is fur5 ther amended by adding at the end the following new sub6 section: 

7 ‘‘(g) TRANSFERS TO CORPORATION.—Notwithstanding 

8 subsection (b)(2) and subsection (d)(2), the Secretary may 

9 transfer up to 9,550 metric tons of uranium to the Corpora10 tion to replace uranium that the Secretary transferred to 

11 the Corporation on or about June 30, 1993, April 20, 1998, 

12 and May 18, 1998, and that does not meet commercial spec13 ifications.’’. 

14 (c) SERVICES.—Section 3112 of the USEC Privatiza15 tion Act (42 U.S.C. 2297h–10) is further amended by add16 ing at the end the following new subsection: 

17 ‘‘(h) SERVICES.—(1) Notwithstanding any other pro18 vision of this section, if the Secretary determines that if 

19 the Corporation has failed, or may fail, to perform any obli20 gation under the Agreement between the Department of En21 ergy and the Corporation dated June 17, 2002, and as 

22 amended thereafter, which failure could result in termi23 nation of the Agreement, the Secretary shall notify the Com24 mittee on Energy and Commerce of the House of Represent25 atives and the Committee on Energy and Natural Resources 
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1 of the Senate, in such a manner that affords the Committees 

2 an opportunity to comment, prior to a determination by 

3 the Secretary whether termination, waiver, or modification 

4 of the Agreement is required. The Secretary is authorized 

5 to take such action as he determines necessary under the 

6 Agreement to terminate, waive, or modify provisions of the 

7 Agreement to achieve its purposes. 

8 ‘‘(2) Notwithstanding any other provision of this sec9 tion, if the Secretary determines in accordance with Article 

10 2D of the Agreement between the Department of Energy and 

11 the Corporation dated June 17, 2002, and as amended 

12 thereafter, to transition operation of the Paducah gaseous 

13 diffusion plant, the Secretary may provide uranium enrich14 ment services in a manner consistent with Article 2D of 

15 such Agreement.’’. 

16 (d) REPORT.—Within 3 years after the date of enact17 ment of this Act, the Secretary shall report to the Congress 

18 on the implementation of this section. The report shall in19 clude a discussion of available excess uranium inventories, 

20 all sales or transfers made by the Secretary of Energy or 

21 the Secretary of the Army, the impact of such sales or trans22 fers on the domestic uranium industry, the spot market ura23 nium price, and the national security interests of the 

24 United States, and any steps taken to remediate any ad25 verse impacts of such sales or transfers. 
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1 SEC. 4031. MEDICAL ISOTOPE PRODUCTION. 

2 Section 134 of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2160d) is amended—

4 (1) by redesignating subsection b. as subsection 

5 f.; 

6 (2) by inserting after subsection a. the following: 

7 ‘‘b. The Commission may issue a license authorizing 

8 the export (including shipment to and use at intermediate 

9 and ultimate consignees specified in the license) to a Re10 cipient Country of highly enriched uranium for medical 

11 isotope production if, in addition to any other requirements 

12 of this Act, the Commission determines that—

13 ‘‘(1) a Recipient Country that supplies an assur14 ance letter to the United States Government in con15 nection with the Commission’s consideration of the 

16 export license application has informed the United 

17 States Government that any intermediate consignees 

18 and the ultimate consignee specified in the applica19 tion are required to use such highly enriched uranium 

20 solely to produce medical isotopes; and 

21 ‘‘(2) the highly enriched uranium for medical 

22 isotope production will be irradiated only in a reac23 tor in a Recipient Country that—

24 ‘‘(A) uses an alternative nuclear reactor 

25 fuel; or
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1 ‘‘(B) is the subject of an agreement with the 

2 United States Government to convert to an alter3 native nuclear reactor fuel when such fuel can be 

4 used in that reactor. 

5 ‘‘c. Applications to the Commission for licenses author6 izing the export to a Recipient Country of highly enriched 

7 uranium for medical isotope production shall be subject to 

8 subsection b., and subsection a. shall not be applicable to 

9 such exports. 

10 ‘‘d. The Commission is authorized to specify, by rule11 making or decision in connection with an export license ap12 plication, that a country other than a Recipient Country 

13 may receive exports of highly enriched uranium for medical 

14 isotope production in accordance with the same criteria es15 tablished by subsection b. for exports to a Recipient Coun16 try, upon the Commission’s finding that such additional 

17 country is a party to the Treaty on the Nonproliferation 

18 of Nuclear Weapons and the Convention on the Physical 

19 Protection of Nuclear Material and will receive such highly 

20 enriched uranium pursuant to an agreement with the 

21 United States concerning peaceful uses of nuclear energy. 

22 ‘‘e. The Commission shall review the adequacy of phys23 ical protection requirements that are currently applicable 

24 to the transportation of highly enriched uranium for med25 ical isotope production. If it determines that additional 
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1 physical protection measures are necessary, including any 

2 limits that the Commission finds are necessary on the quan3 tity of highly enriched uranium contained in a single ship4 ment for medical isotope production, the Commission shall 

5 impose such requirements, as license conditions or through 

6 other appropriate means.’’; and 

7 (3) in subsection f., as so redesignated by para8 graph (1) of this section—

9 (A) by striking ‘‘and’’ at the end of para10 graph (2); 

11 (B) by striking the period at the end of 

12 paragraph (3)(B) and inserting a semicolon; and 

13 (C) by adding at the end the following: 

14 ‘‘(4) the term ‘medical isotopes’ means radio15 active isotopes, including Molybdenum 99, Iodine 

16 131, and Xenon 133, that are used to produce radio17 pharmaceuticals for diagnostic or therapeutic proce18 dures on patients, or in connection with research and 

19 development of radiopharmaceuticals; 

20 ‘‘(5) the term ‘highly enriched uranium for med21 ical isotope production’ means highly enriched ura22 nium contained in, or for use in, targets to be irradi23 ated for the sole purpose of producing medical iso24 topes; 
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1 ‘‘(6) the term ‘radiopharmaceuticals’ means ra2 dioactive isotopes containing byproduct material com3 bined with chemical or biological material that are 

4 designed to accumulate temporarily in a part of the 

5 body, for therapeutic purposes or for enabling the pro6 duction of a useful image of the appropriate body 

7 organ or function for use in diagnosis of medical con8 ditions; and 

9 ‘‘(7) the term ‘Recipient Country’ means Can10 ada, Belgium, France, Germany, and the Nether11 lands.’’.

12 SEC. 4032. HIGHLY ENRICHED URANIUM DIVERSION 

13 THREAT REPORT. 

14 Section 307 of the Energy Reorganization Act of 1974 

15 (42 U.S.C. 5877) is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘(d) Not later than 6 months after the date of the en18 actment of this Act, the Secretary of Energy shall transmit 

19 to the Congress a report with recommendations on reducing 

20 the threat resulting from the theft or diversion of highly en21 riched uranium. Such report shall address—

22 ‘‘(1) monitoring of highly enriched uranium sup23 plies at any commercial companies who have access 

24 to substantial amounts of highly enriched uranium; 
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1 ‘‘(2) assistance to companies described in para2 graph (1) with security and personnel checks; 

3 ‘‘(3) acceleration of the process of blending down 

4 excess highly enriched uranium into low-enriched 

5 uranium; 

6 ‘‘(4) purchasing highly enriched uranium (except 

7 for production of medical isotopes); 

8 ‘‘(5) paying the cost of shipping highly enriched 

9 uranium; 

10 ‘‘(6) accelerating the conversion of commercial 

11 research reactors and energy reactors to the use of 

12 low-enriched uranium fuel where they now use highly 

13 enriched uranium fuel; and 

14 ‘‘(7) minimizing, and encouraging transparency 

15 in, the further enrichment of low-enriched uranium to 

16 highly enriched uranium.’’. 

17 SEC. 4033. WHISTLEBLOWER PROTECTION. 

18 (a) DEFINITION OF EMPLOYER.—Section 211(a)(2) of 

19 the Energy Reorganization Act of 1974 (42 U.S.C. 

20 5851(a)(2)) is amended—

21 (1) by striking ‘‘and’’ at the end of subpara22 graph (C); 

23 (2) in subparagraph (D), by striking ‘‘that is in24 demnified’’ and all that follows through ‘‘12344.’’ and 

25 inserting ‘‘or the Commission; and’’; and 
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1 (3) by adding at the end the following new sub2 paragraph: 

3 ‘‘(E) the Department of Energy and the Com4 mission.’’. 

5 (b) DE NOVO REVIEW.—Subsection (b) of such section 

6 211 is amended by adding at the end the following new 

7 paragraph: 

8 ‘‘(4) If the Secretary has not issued a final decision 

9 within 180 days after the filing of a complaint under para10 graph (1), and there is no showing that such delay is due 

11 to the bad faith of the claimant, the claimant may bring 

12 an action at law or equity for de novo review in the appro13 priate district court of the United States, which shall have 

14 jurisdiction over such an action without regard to the 

15 amount in controversy.’’. 

16 TITLE V—VEHICLES AND FUELS 

17 Subtitle A—Energy Policy Act 

18 Amendments 

19 SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TO20 WARD NONCOVERED FLEETS. 

21 Section 508 of the Energy Policy Act of 1992 (42 

22 U.S.C. 13258) is amended by adding at the end the fol23 lowing new subsection:
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1 ‘‘(e) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO2 WARD USE OF DEDICATED VEHICLES IN NONCOVERED

3 FLEETS.—

4 ‘‘(1) DEFINITIONS.—In this subsection: 

5 ‘‘(A) MEDIUM OR HEAVY DUTY VEHICLE.—

6 The term ‘medium or heavy duty vehicle’ means 

7 a dedicated vehicle that—

8 ‘‘(i) in the case of a medium duty vehi9 cle, has a gross vehicle weight rating of 

10 more than 8,500 pounds but not more than 

11 14,000 pounds; or 

12 ‘‘(ii) in the case of a heavy duty vehi13 cle, has a gross vehicle weight rating of 

14 more than 14,000 pounds. 

15 ‘‘(B) SUBSTANTIAL CONTRIBUTION.—The 

16 term ‘substantial contribution’ means not less 

17 than $15,000 in cash or in kind services, as de18 termined by the Secretary. 

19 ‘‘(2) ALLOCATION OF CREDITS.—The Secretary 

20 shall allocate a credit to a fleet or covered person 

21 under this section if the fleet or person makes a sub22 stantial contribution toward the acquisition and use 

23 of dedicated vehicles or neighborhood electric vehicles 

24 by a person that owns, operates, leases, or otherwise 

25 controls a fleet that is not covered by this title. 
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1 ‘‘(3) MULTIPLE CREDITS FOR MEDIUM AND

2 HEAVY DUTY VEHICLES.—The Secretary shall issue 2 

3 full credits to a fleet or covered person under this sec4 tion if the fleet or person makes a substantial con5 tribution toward the acquisition and use of a medium 

6 or heavy duty vehicle. 

7 ‘‘(4) USE OF CREDITS.—At the request of a fleet 

8 or covered person allocated a credit under this sub9 section, the Secretary shall, for the year in which the 

10 acquisition of the dedicated vehicle or neighborhood 

11 electric vehicle is made, treat that credit as the acqui12 sition of 1 alternative fueled vehicle that the fleet or 

13 covered person is required to acquire under this title. 

14 ‘‘(5) LIMITATION.—Except as provided in para15 graph (3), no more than 1 credit shall be allocated 

16 under this subsection for each vehicle.’’. 

17 SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUC18 TURE. 

19 Section 508 of the Energy Policy Act of 1992 (42 

20 U.S.C. 13258), as amended by this Act, is further amended 

21 by adding at the end the following new subsection: 

22 ‘‘(f) CREDIT FOR INVESTMENT IN ALTERNATIVE FUEL

23 INFRASTRUCTURE.—

24 ‘‘(1) DEFINITION.—In this subsection, the term 

25 ‘qualifying infrastructure’ means—
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1 ‘‘(A) equipment required to refuel or re2 charge alternative fueled vehicles; 

3 ‘‘(B) facilities or equipment required to 

4 maintain, repair, or operate alternative fueled 

5 vehicles; 

6 ‘‘(C) training programs, educational mate7 rials, or other activities necessary to provide in8 formation regarding the operation, maintenance, 

9 or benefits associated with alternative fueled ve10 hicles; and 

11 ‘‘(D) such other activities the Secretary con12 siders to constitute an appropriate expenditure 

13 in support of the operation, maintenance, or fur14 ther widespread adoption of or utilization of al15 ternative fueled vehicles. 

16 ‘‘(2) ALLOCATION OF CREDITS.—The Secretary 

17 shall allocate a credit to a fleet or covered person 

18 under this section for investment in qualifying infra19 structure if the qualifying infrastructure is open to 

20 the general public during regular business hours. 

21 ‘‘(3) AMOUNT.—For the purposes of credits 

22 under this subsection—

23 ‘‘(A) 1 credit shall be equal to a minimum 

24 investment of $25,000 in cash or in kind serv25 ices, as determined by the Secretary; and 
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1 ‘‘(B) except in the case of a Federal or State 

2 fleet, no part of the investment may be provided 

3 by Federal or State funds. 

4 ‘‘(4) USE OF CREDITS.—At the request of a fleet 

5 or covered person allocated a credit under this sub6 section, the Secretary shall, for the year in which the 

7 investment is made, treat that credit as the acquisi8 tion of 1 alternative fueled vehicle that the fleet or 

9 covered person is required to acquire under this 

10 title.’’. 

11 SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT. 

12 (a) DEFINITIONS.—In this section: 

13 (1) ALTERNATIVE FUEL.—The term ‘‘alternative 

14 fuel’’ has the meaning given the term in section 301 

15 of the Energy Policy Act of 1992 (42 U.S.C. 13211). 

16 (2) ALTERNATIVE FUELED VEHICLE.—The term 

17 ‘‘alternative fueled vehicle’’ has the meaning given the 

18 term in section 301 of the Energy Policy Act of 1992 

19 (42 U.S.C. 13211). 

20 (3) LIGHT DUTY MOTOR VEHICLE.—The term 

21 ‘‘light duty motor vehicle’’ has the meaning given the 

22 term in section 301 of the Energy Policy Act of 1992 

23 (42 U.S.C. 13211). 

24 (4) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Energy.
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1 (b) REPORT.—Not later than 1 year after the date of 

2 enactment of this Act, the Secretary shall submit to Con3 gress a report on the effect that titles III, IV, and V of the 

4 Energy Policy Act of 1992 have had on the development 

5 of alternative fueled vehicle technology, the availability of 

6 alternative fueled vehicles in the market, the cost of light 

7 duty motor vehicles that are alternative fueled vehicles, and 

8 the availability, cost, and use of alternative fuels and bio9 diesel. Such report shall include any recommendations of 

10 the Secretary for legislation concerning the alternative 

11 fueled vehicle requirements under the Energy Policy Act of 

12 1992, and shall examine, discuss, and determine the fol13 lowing: 

14 (1) The number of alternative fueled vehicles ac15 quired by fleets or covered persons required to acquire 

16 alternative fueled vehicles. 

17 (2) The extent to which fleets subject to alter18 native fueled vehicle acquisition requirements have 

19 met those requirements through the use of fuel mix20 tures that contain at least 20 percent biodiesel pursu21 ant to section 312 of the Energy Policy Act of 1992 

22 (42 U.S.C. 13220). 

23 (3) The amount of alternative fuel used in alter24 native fueled vehicles acquired by fleets required to ac-
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1 quire alternative fueled vehicles under the Energy 

2 Policy Act of 1992. 

3 (4) The amount of petroleum displaced by the 

4 use of alternative fueled vehicles acquired by fleets or 

5 covered persons. 

6 (5) The cost of compliance with vehicle acquisi7 tion requirements under the Energy Policy Act of 

8 1992, and the benefits of using such fuel and vehicles. 

9 (6) Projections of the amount of biodiesel, the 

10 number of alternative fueled vehicles, and the amount 

11 of alternative fuel that will be used over the next dec12 ade by fleets required to acquire alternative fueled ve13 hicles under the Energy Policy Act of 1992. 

14 (7) The existence of any obstacles to increased 

15 use of alternative fuel and biodiesel in vehicles ac16 quired or maintained by fleets required to acquire al17 ternative fueled vehicles under the Energy Policy Act 

18 of 1992, and the benefits of using such fuel and vehi19 cles. 

20 SEC. 5014. ALLOCATION OF INCREMENTAL COSTS. 

21 Section 303(c) of the Energy Policy Act of 1992 (42 

22 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and insert23 ing ‘‘shall’’.
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1 Subtitle B—FreedomCAR and 

2 Hydrogen Fuel Program 

3 SEC. 5021. SHORT TITLE. 

4 This subtitle may be cited as the ‘‘FreedomCAR and 

5 Hydrogen Fuel Act of 2003’’ or ‘‘Freedom Act’’. 

6 SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS. 

7 (a) FINDINGS.—Congress finds that—

8 (1) the United States is currently dependent on 

9 foreign sources for a majority of its petroleum supply; 

10 (2) the Nation’s dependence on foreign petroleum 

11 is expected to increase in the decades ahead; 

12 (3) it is in the national interest to reduce de13 pendence on imported petroleum by accelerating Fed14 eral efforts to partner with the private sector by de15 ploying hydrogen fuel cell vehicles and the refueling 

16 infrastructure to support those vehicles; 

17 (4) it is in the national interest to develop a 

18 light duty vehicle fleet that substantially reduces de19 pendence on foreign petroleum, assists the Nation in 

20 meeting its requirements under the Clean Air Act and 

21 reduces greenhouse gas emissions in a manner that 

22 maintains the freedom of consumers to purchase the 

23 kinds of vehicles they wish to drive and the freedom 

24 to refuel those vehicles safely, affordably, and conven25 iently; 
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1 (5) hydrogen fuel cell vehicles and supporting in2 frastructure have the potential to accelerate the par3 allel advancement of fuel cells for stationary power 

4 that will enhance the resiliency, reliability, and envi5 ronmental performance of the Nation’s electricity in6 frastructure; 

7 (6) ancillary benefits for the Nation, including 

8 the acceleration of fuel cell technology for consumer 

9 electronics and portable power, are likely to result 

10 from the advancement of hydrogen fuel cell vehicles 

11 and supporting infrastructure; 

12 (7) there is a need for deployment of bridging 

13 technologies including gasoline electric and diesel elec14 tric hybrid drive systems, advanced combustion en15 gines including clean diesel, electric battery, and 

16 power electronics, and alternative fuels and other 

17 technology that can contribute to reducing petroleum 

18 demand and decreasing air emissions; 

19 (8) low-cost hydrogen production, storage, and 

20 delivery facilities are essential to the success of the 

21 FreedomCAR Vehicle Programs; and 

22 (9) work should be performed in a manner that 

23 is cognizant of consumer acceptance, passenger safety, 

24 and marketplace success. 
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1 (b) PURPOSE.—The purpose of this subtitle is to reduce 

2 significantly the Nation’s dependence on imported petro3 leum, enhance the production and conservation of energy, 

4 and reduce air emissions through support of the following 

5 Department of Energy actions: 

6 (1) Programs and activities leading to—

7 (A) a commitment by automakers and hy8 drogen energy and energy infrastructure pro9 viders no later than year 2015 to offer safe, af10 fordable, and technically viable hydrogen fuel cell 

11 vehicles and refueling infrastructure in the mass 

12 consumer market; and 

13 (B) a commitment by the automakers and 

14 hydrogen energy and energy infrastructure pro15 viders to the deployment of hydrogen fuel cell ve16 hicles and affordable and convenient refueling 

17 infrastructure no later than year 2020. 

18 (2) A program to establish international codes, 

19 standards, and safety protocols for the use and manu20 facture of domestic and foreign products. 

21 (3) Interagency, intergovernmental, and inter22 national programs and activities for education, infor23 mation exchange, and cooperation. 

24 (c) DEFINITIONS.—In this subtitle:
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1 (1) The term ‘‘Advisory Committee’’ means the 

2 Hydrogen Technical and Fuel Cell Advisory Com3 mittee established under section 5028 of this Act. 

4 (2) The term ‘‘Department’’ means the Depart5 ment of Energy. 

6 (3) The term ‘‘FreedomCAR’’ is the acronym for 

7 a Department initiative in automotive research and 

8 development entitled ‘‘Freedom Cooperative Auto9 motive Research’’. 

10 (4) The term ‘‘fuel cell’’ means a device that di11 rectly converts the chemical energy of a fuel and an 

12 oxidant into electricity by an electrochemical process 

13 taking place at separate electrodes in the device. 

14 (5) The term ‘‘infrastructure’’ means the equip15 ment, systems, or facilities used to produce, distribute, 

16 deliver, or store hydrogen and other advanced clean 

17 fuels. 

18 (6) The term ‘‘light duty vehicle’’ means a car 

19 or truck, classified by the Department of Transpor20 tation as a Class I or IIA vehicle. 

21 (7) The term ‘‘Secretary’’ means the Secretary of 

22 Energy. 

23 SEC. 5023. PLAN; REPORT. 

24 (a) PLAN.—The Secretary, in consultation with other 

25 appropriate Federal agencies, shall prepare a comprehen-
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1 sive interagency coordination plan for activities under this 

2 subtitle. This plan may be provided as part of the Presi3 dent’s annual budget submission to Congress. 

4 (b) REPORT.—Not later than one year after the date 

5 of enactment of this subtitle, and biennially thereafter, the 

6 Secretary shall transmit to the Congress a report on the 

7 status of programs and activities under this subtitle. This 

8 report may be provided as part of the President’s annual 

9 budget submission to Congress. This report may include, 

10 in addition to any views and recommendations of the Sec11 retary— 

12 (1) an assessment of the effectiveness of the pro13 grams and activities under this subtitle and the ex14 tent to which the purposes in section 5022(b) have 

15 been met; and 

16 (2) the potential for interagency, intergovern17 mental, international, or private sector collaboration 

18 opportunities and activities under this subtitle.–

19 SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP. 

20 (a) PROGRAM.—In partnership with the private sector, 

21 the Secretary shall conduct a program designed to facilitate 

22 the production and conservation of energy and the deploy23 ment of energy infrastructure, including all of the following: 

24 (1) Hydrogen energy. 

25 (2) Fuel cells. 
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1 (3) Advanced vehicle technologies. 

2 (4) Clean fuels in addition to hydrogen. 

3 (5) Codes, standards, and safety protocols.–

4 (b) PROGRAM GOALS.—

5 (1) AUTOMAKERS.—For automakers the goals of 

6 the program are—

7 (A) to enable a commitment by automakers 

8 no later than year 2015 to offer safe, affordable, 

9 and technically viable hydrogen fuel cell vehicles 

10 into commerce; and 

11 (B) to enable production, delivery, and ac12 ceptance by consumers of model year 2020 hy13 drogen fuel cell and other vehicles that will 

14 have— 

15 (i) a range of at least three hundred 

16 miles; 

17 (ii) improved performance and ease of 

18 driving; 

19 (iii) met all light duty safety regula20 tions created under section 30111 of title 

21 49, United States Code; and 

22 (iv) when compared to light duty vehi23 cles in model year 2003—

24 (I) a fuel economy that is two and 

25 one half times the equivalent fuel econ-
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1 omy of these vehicles as regulated 

2 under the Motor Vehicle Information 

3 and Cost Savings Act, or about 70 

4 miles per gallon, and 

5 (II) near zero emissions of air 

6 pollutants regulated under the Clean 

7 Air Act. 

8 (2) HYDROGEN ENERGY AND ENERGY INFRA9 STRUCTURE.—For hydrogen energy and energy infra10 structure the goals of the program include, but are not 

11 limited to, a commitment not later than 2015 that 

12 will enable the deployment by 2020 of infrastructure 

13 to provide—

14 (A) safe and convenient refueling; 

15 (B) activities leading to widespread avail16 ability of hydrogen from domestic energy sources 

17 through—

18 (i) production, including consideration 

19 of cost-effective production from domestic 

20 energy sources; 

21 (ii) delivery, including transmission 

22 by pipeline and other distribution methods 

23 for hydrogen; and 

24 (iii) storage, including storage in sur25 face transportation vehicles; 
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1 (C) hydrogen for fuel cells, internal combus2 tion engines, and other energy conversion devices 

3 for portable, stationary, and transportation ap4 plications; and 

5 (D) other technologies consistent with the 

6 Department’s plan. 

7 (3) FUEL CELLS.—The program for fuel cells 

8 and their portable, stationary, and transportation ap9 plications may include, but is not limited to—

10 (A) a safe, economical, and environmentally 

11 sound hydrogen fuel cell; 

12 (B) a fuel cell for light duty and other vehi13 cles; and 

14 (C) other technologies consistent with the 

15 Department’s plan. 

16 (4) ADVANCED VEHICLE TECHNOLOGIES.—The 

17 program for advanced vehicle technologies may in18 clude, but is not limited to—

19 (A) advanced combustion; 

20 (B) materials; 

21 (C) energy storage; 

22 (D) control systems; and 

23 (E) other technologies consistent with the 

24 Department’s plan.
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1 (5) CODES, STANDARDS, AND SAFETY PROTO2 COLS.—(A) The Department’s program for codes, 

3 standards, and safety protocols shall strive towards 

4 establishment of international codes, standards, and 

5 safety protocols for the use and manufacture of domes6 tic and foreign products. 

7 (B) The Secretary may represent the United 

8 States interests with respect to activities and pro9 grams under this subsection, collaborating with the 

10 Secretary of Transportation, and in consultation with 

11 other appropriate governments and nongovernmental 

12 organizations including the following: 

13 (i) Other Federal, State, regional, and local 

14 governments and their representatives. 

15 (ii) Industry and its representatives, in16 cluding members of the energy and transpor17 tation industries. 

18 (iii) Foreign governments and their rep19 resentatives including international organiza20 tions. 

21 (c) FEDERAL FUNDING.—(1) The Secretary shall carry 

22 out the programs and activities under this section con23 sistent with the generally applicable Federal laws and regu24 lations governing awards of financial assistance, contracts, 
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1 or other agreements, and may include funding to nationally 

2 recognized university-based research centers. 

3 (2) The Secretary shall endeavor to avoid duplication 

4 or displacement of other research and development pro5 grams and activities. 

6 (d) COST SHARING.—(1) The Secretary shall require 

7 a commitment from non-Federal sources of at least 20 per8 cent of the cost of proposed programs under this section. 

9 (2) The Secretary may reduce or eliminate the cost 

10 sharing requirement under paragraph (1)—

11 (A) if the Secretary determines that the activity 

12 is of a basic or fundamental nature which is vital to 

13 the success of the program and unlikely to occur in 

14 a timely manner without reduction or elimination of 

15 the cost-sharing requirement; or 

16 (B) for technical analyses, outreach programs, 

17 and other activities including educational programs 

18 under section 5027 of this subtitle that the Secretary 

19 does not expect to result in a marketable product. 

20 SEC. 5025. DEPLOYMENT. 

21 (a) DEPLOYMENT PROGRAM.—In partnership with the 

22 private sector, the Secretary shall conduct a program to fa23 cilitate the deployment of—

24 (1) hydrogen energy and energy infrastructure; 

25 (2) fuel cells; 
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1 (3) advanced vehicle technologies; 

2 (4) clean fuels in addition to hydrogen; and 

3 (5) codes, standards, and safety protocols.–

4 (b) PROGRAM GOALS.—(1) For automakers, the goals 

5 of the program are— 

6 (A) to enable a decision by automakers no later 

7 than year 2015 to offer safe, affordable, and tech8 nically viable hydrogen fuel cell vehicles into com9 merce; and 

10 (B) to enable production and delivery to, and ac11 ceptance by, consumers of model year 2020 hydrogen 

12 fuel cell and other vehicles that will have—

13 (i) a range of at least 300 miles; 

14 (ii) improved performance and ease of driv15 ing; 

16 (iii) met all light duty safety regulations 

17 created under section 30111 of title 49, United 

18 States Code; and 

19 (iv) when compared to light duty vehicles in 

20 model year 2003—

21 (I) a fuel economy that is two and one 

22 half times the equivalent fuel economy of 

23 these vehicles under the Motor Vehicle Infor24 mation and Cost Savings Act, or about 70 

25 miles per gallon; and 
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1 (II) near zero emissions of air pollut2 ants regulated under the Clean Air Act. 

3 (2) For hydrogen energy and energy infrastructure the 

4 goals of the program include, but are not limited to, a com5 mitment not later than 2015 that will enable the deploy6 ment by 2020 of infrastructure to provide—

7 (A) safe, convenient, and affordable refueling; 

8 (B) widespread availability of hydrogen from do9 mestic energy sources through—

10 (i) production, including consideration of 

11 cost-effective production from domestic energy 

12 sources; 

13 (ii) delivery, including transmission by 

14 pipeline and other distribution methods, for hy15 drogen in its gaseous, liquid, and solid states; 

16 and 

17 (iii) storage, including storage in surface 

18 transportation vehicles; 

19 (C) hydrogen for fuel cells, internal combustion 

20 engines, and other energy conversion devices for port21 able, stationary, and transportation applications; and 

22 (D) other technologies consistent with the De23 partment’s plan. 
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1 (c) FUEL CELLS.—The program for fuel cells and their 

2 portable, stationary, and transportation applications may 

3 include but is not limited to—

4 (1) a safe, economical, and environmentally 

5 sound hydrogen fuel cell; 

6 (2) a fuel cell for light duty and other vehicles; 

7 and 

8 (3) other technologies consistent with the Depart9 ment’s plan. 

10 (d) ADVANCED VEHICLE TECHNOLOGIES.—The pro11 gram for advanced vehicle technologies may include, but is 

12 not limited to—

13 (1) advanced combustion; 

14 (2) materials; 

15 (3) energy storage; 

16 (4) control systems; and 

17 (5) other technologies consistent with the Depart18 ment’s plan. 

19 (e) FEDERAL FUNDING.—The Secretary shall carry 

20 out the program and activities under this section consistent 

21 with laws and regulations governing awards of financial 

22 assistance, contracts or other agreements, and may include 

23 funding to nationally recognized university-based research 

24 centers. The Secretary shall endeavor to avoid duplication 

25 or displacement of other programs.
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1 (f) COST SHARING.—

2 (1) IN GENERAL.—The Secretary shall require a 

3 commitment from non-Federal sources of at least 50 

4 percent of the costs directly relating to a demonstra5 tion under this section. 

6 (2) REDUCTION.—The Secretary may reduce the 

7 non-Federal requirement under paragraph (1) if the 

8 Secretary determines that—

9 (A) the reduction is appropriate considering 

10 the technological risks involved; and 

11 (B) the terms and conditions are consistent 

12 with the Agreement on Subsidies and Counter13 vailing Measures. 

14 (3) COOPERATIVE AGREEMENTS WITH GOVERN15 MENTS.—The Secretary may enter into cooperative 

16 and cost sharing agreements with Federal, State, or 

17 local governments to deploy vehicles, vehicle systems, 

18 and refueling infrastructure using hydrogen, fuel cells, 

19 or other advanced technologies in government facili20 ties or fleet transportation systems. 

21 SEC. 5026. ASSESSMENT AND TRANSFER. 

22 (a) PROGRAM.—The Secretary may conduct a pro23 gram to transfer technology to the private sector under this 

24 subtitle. 
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1 (b) DISCLOSURE.—The Secretary may protect from 

2 disclosure, for up to 5 years after the information was devel3 oped, any information developed pursuant to a cost shared 

4 transaction, or subagreement thereunder, entered into under 

5 this subtitle to advance the goals of the programs, which 

6 developed information is of a character that it would be 

7 protected from disclosure under section 552(b)(4) of title 5, 

8 United States Code, if this developed information had been 

9 obtained from a person other than a Federal agency. 

10 SEC. 5027. INTERAGENCY TASK FORCE. 

11 (a) ESTABLISHMENT.—Not later than 120 days after 

12 the date of enactment of this Act, the President shall estab13 lish an interagency task force chaired by the Secretary or 

14 his designee with representatives from each of the following: 

15 (1) The Office of Science and Technology Policy 

16 within the Executive Office of the President. 

17 (2) The Department of Transportation. 

18 (3) The Department of Defense. 

19 (4) The Department of Commerce (including the 

20 National Institute of Standards and Technology). 

21 (5) The Environmental Protection Agency. 

22 (6) The National Aeronautics and Space Admin23 istration. 

24 (7) Other Federal agencies as the Secretary de25 termines appropriate. 
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1 (b) DUTIES OF THE INTERAGENCY TASK FORCE.—

2 (1) PLANNING.—The task force shall coordinate 

3 the implementation of the interagency plan in section 

4 5023(a), and work towards deployment of—

5 (A) a safe, economical, and environmentally 

6 sound fuel infrastructure, including an infra7 structure that supports buses and other fleet 

8 transportation; 

9 (B) fuel cells in government and other ap10 plications, including portable, stationary, and 

11 transportation applications; and 

12 (C) distributed power generation, including 

13 the generation of combined heat, power, and 

14 clean fuels including hydrogen. 

15 (2) INFORMATION EXCHANGE.—(A) The inter16 agency task force shall coordinate interagency pro17 grams and activities including the exchange of infor18 mation. 

19 (B) The heads of all agencies, including those 

20 whose agencies are not represented on the interagency 

21 task force, shall cooperate with and furnish informa22 tion to the interagency task force, the Advisory Com23 mittee, and the Department. 

24 (C) The information exchange may consist of 

25 workshops, publications, conferences, and a database 
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1 for use by the public and private sectors. The inter2 agency task force is expected to—

3 (i) foster the exchange of generic, nonpropri4 etary information and technology among indus5 try, academia, and government; 

6 (ii) update the inventory and assessment of 

7 hydrogen, fuel cells, and other advanced tech8 nologies, including their commercial capability 

9 for the economic and environmentally safe pro10 duction, distribution, delivery, storage, and use 

11 of clean fuels including hydrogen; 

12 (iii) integrate technical and other informa13 tion made available as a result of the programs 

14 and activities under this subtitle; 

15 (iv) promote the marketplace introduction 

16 of infrastructure for hydrogen and other clean 

17 fuel vehicles; and 

18 (v) conduct an education program to pro19 vide FreedomCAR and hydrogen fuel informa20 tion to potential end-users. 

21 SEC. 5028. ADVISORY COMMITTEE. 

22 (a) ESTABLISHMENT.—The Hydrogen Technical and 

23 Fuel Cell Advisory Committee is established to advise the 

24 Secretary on the programs and activities under this sub25 title. 
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1 (b) MEMBERSHIP.—

2 (1) MEMBERS.—The Advisory Committee is com3 prised of not fewer than 12 nor more than 25 mem4 bers. These members shall be appointed by the Sec5 retary to represent domestic industry, academia, pro6 fessional societies, government agencies, and finan7 cial, environmental, and other appropriate organiza8 tions based on the Department’s assessment of the 

9 technical and other qualifications of committee mem10 bers and the needs of the Advisory Committee. 

11 (2) TERMS.—The term of a member of the Advi12 sory Committee shall not be more than 3 years. The 

13 Secretary may appoint members of the Advisory 

14 Committee in a manner that allows the terms of the 

15 members serving at any time to expire at spaced in16 tervals so as to ensure continuity in the functioning 

17 of the Advisory Committee. A member of the Advisory 

18 Committee whose term is expiring may be re19 appointed. 

20 (3) CHAIRPERSON.—The Advisory Committee 

21 shall have a chairperson, who is elected by the mem22 bers from among their number. 

23 (c) REVIEW.—The Advisory Committee shall review 

24 and make recommendations to the Secretary on—
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1 (1) the implementation of programs and activi2 ties under this subtitle; 

3 (2) the safety, economical, and environmental 

4 consequences of technologies for the production, dis5 tribution, delivery, storage, or use of hydrogen energy 

6 and fuel cells; and 

7 (3) the interagency coordination plan under sec8 tion 5023(a) of this Act. 

9 (d) RESPONSE TO RECOMMENDATIONS.—The Sec10 retary shall consider, but need not adopt, any recommenda11 tions of the Advisory Committee under subsection (c). 

12 (e) ADVISORY COMMITTEE SUPPORT.—The Secretary 

13 shall provide resources necessary in the judgment of the Sec14 retary for the Advisory Committee to carry out its respon15 sibilities under this subtitle. 

16 SEC. 5029. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated to carry out 

18 the purposes of this subtitle including programs for light 

19 duty vehicles, in addition to any amounts made available 

20 for these purposes under other Acts—

21 (1) $273,500,000 for fiscal year 2004; 

22 (2) $325,000,000 for fiscal year 2005; 

23 (3) $375,000,000 for fiscal year 2006; 

24 (4) $400,000,000 for fiscal year 2007; and 

25 (5) $425,000,000 for fiscal year 2008. 
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1 SEC. 5030. FUEL CELL PROGRAM AT NATIONAL PARKS. 

2 The Secretary of Energy, in cooperation with the Sec3 retary of Interior and the National Park Service, is author4 ized to establish a program to provide matching funds to 

5 assist in the deployment of fuel cells at one or more promi6 nent National Parks. The Secretary of Energy shall trans7 mit to Congress within 1 year, and annually thereafter, a 

8 report describing any activities taken pursuant to such pro9 gram. The report shall address whether activities taken pur10 suant to such program reduce the environmental impacts 

11 of energy use at National Parks. There are authorized to 

12 be appropriated $2,000,000 for each of fiscal years 2004 

13 through 2010 to carry out the purposes of this section. 

14 SEC. 5030A. ADVANCED POWER SYSTEM TECHNOLOGY IN15 CENTIVE PROGRAM. 

16 (a) PROGRAM.—The Secretary of Energy is authorized 

17 to establish an Advanced Power System Technology Incen18 tive Program to support the deployment of certain advanced 

19 power system technologies and to improve and protect cer20 tain critical governmental, industrial, and commercial 

21 processes. Funds provided under this section shall be used 

22 by the Secretary to make incentive payments to eligible 

23 owners or operators of advanced power system technologies 

24 to increase power generation through enhanced operational, 

25 economic, and environmental performance. Payments under 

26 this section may only be made upon receipt by the Secretary 
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1 of an incentive payment application establishing an appli2 cant as either—

3 (1) a qualifying advanced power system tech4 nology facility; or 

5 (2) a qualifying security and assured power fa6 cility. 

7 (b) INCENTIVES.—Subject to availability of funds, a 

8 payment of 1.8 cents per kilowatt-hour shall be paid to the 

9 owner or operator of a qualifying advanced power system 

10 technology facility under this section for electricity gen11 erated at such facility. An additional 0.7 cents per kilowatt12 hour shall be paid to the owner or operator of a qualifying 

13 security and assured power facility for electricity generated 

14 at such facility. Any facility qualifying under this section 

15 shall be eligible for an incentive payment for up to, but 

16 not more than, the first 10,000,000 kilowatt-hours produced 

17 in any fiscal year. 

18 (c) ELIGIBILITY.—For purposes of this section—

19 (1) the term ‘‘qualifying advanced power system 

20 technology facility’’ means a facility using an ad21 vanced fuel cell, turbine, or hybrid power system or 

22 power storage system to generate or store electric en23 ergy; and 

24 (2) the term ‘‘qualifying security and assured 

25 power facility’’ means a qualifying advanced power 
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1 system technology facility determined by the Sec2 retary of Energy, in consultation with the Secretary 

3 of Homeland Security, to be in critical need of secure, 

4 reliable, rapidly available, high-quality power for 

5 critical governmental, industrial, or commercial ap6 plications. 

7 (d) AUTHORIZATION.—There are authorized to be ap8 propriated to the Secretary of Energy for the purposes of 

9 this section, $10,000,000 for each of the fiscal years 2004 

10 through 2010.

11 Subtitle C—Clean School Buses 

12 SEC. 5031. ESTABLISHMENT OF PILOT PROGRAM. 

13 (a) ESTABLISHMENT.—The Secretary of Energy, in 

14 consultation with the Secretary of Transportation and the 

15 Administrator of the Environmental Protection Agency, 

16 shall establish a pilot program for awarding grants on a 

17 competitive basis to eligible entities for the acquisition of 

18 alternative fuel school buses and ultra-low sulfur diesel 

19 school buses. 

20 (b) REQUIREMENTS.—Not later than 3 months after 

21 the date of the enactment of this Act, the Secretary shall 

22 establish and publish in the Federal register grant require23 ments on eligibility for assistance, and on implementation 

24 of the program established under subsection (a), including 
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1 certification requirements to ensure compliance with this 

2 subtitle. 

3 (c) SOLICITATION.—Not later than 6 months after the 

4 date of the enactment of this Act, the Secretary shall solicit 

5 proposals for grants under this section. 

6 (d) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

7 under this section only—

8 (1) to a local or State governmental entity re9 sponsible for providing school bus service to one or 

10 more public school systems or responsible for the pur11 chase of school buses; or 

12 (2) to a contracting entity that provides school 

13 bus service to one or more public school systems, if the 

14 grant application is submitted jointly with the school 

15 system or systems which the buses will serve. 

16 (e) TYPES OF GRANTS.—

17 (1) IN GENERAL.—Grants under this section 

18 shall promote the conservation of energy and improve19 ment of public health and the environment by facili20 tating the acquisition of alternative fuel school buses 

21 and ultra-low sulfur diesel school buses in lieu of 

22 buses manufactured before model year 1977 and die23 sel-powered buses manufactured before model year 

24 1991. 
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1 (2) NO ECONOMIC BENEFIT.—Other than the re2 ceipt of the grant, a recipient of a grant under this 

3 section may not receive any economic benefit in con4 nection with the receipt of the grant. 

5 (3) PRIORITY OF GRANT APPLICATIONS.—The 

6 Secretary shall give priority to awarding grants to 

7 applicants who will utilize grants to replace buses 

8 manufactured before model year 1977. 

9 (f) CONDITIONS OF GRANT.—A grant provided under 

10 this section shall include the following conditions: 

11 (1) All buses acquired with funds provided under 

12 the grant shall be operated as part of the school bus 

13 fleet for which the grant was made for a minimum 

14 of 5 years. 

15 (2) Funds provided under the grant may only be 

16 used—

17 (A) to pay the cost, except as provided in 

18 paragraph (3), of new alternative fuel school 

19 buses or ultra-low sulfur diesel school buses, in20 cluding State taxes and contract fees; and 

21 (B) to provide—

22 (i) up to 10 percent of the price of the 

23 alternative fuel buses acquired, for necessary 

24 alternative fuel infrastructure if the infra-
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1 structure will only be available to the grant 

2 recipient; and 

3 (ii) up to 15 percent of the price of the 

4 alternative fuel buses acquired, for necessary 

5 alternative fuel infrastructure if the infra6 structure will be available to the grant re7 cipient and to other bus fleets. 

8 (3) The grant recipient shall be required to pro9 vide at least the lesser of 15 percent of the total cost 

10 of each bus received or $15,000 per bus. 

11 (4) In the case of a grant recipient receiving a 

12 grant to demonstrate ultra-low sulfur diesel school 

13 buses, the grant recipient shall be required to provide 

14 documentation to the satisfaction of the Secretary 

15 that diesel fuel containing sulfur at not more than 15 

16 parts per million is available for carrying out the 

17 purposes of the grant, and a commitment by the ap18 plicant to use such fuel in carrying out the purposes 

19 of the grant. 

20 (g) BUSES.—Funding under a grant made under this 

21 section may be used to facilitate the use only of new alter22 native fuel school buses or ultra-low sulfur diesel school 

23 buses—

24 (1) with a gross vehicle weight of greater than 

25 14,000 pounds; 
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1 (2) that are powered by a heavy duty engine; 

2 (3) that, in the case of alternative fuel school 

3 buses, emit not more than—

4 (A) for buses manufactured in model year 

5 2002, 2.5 grams per brake horsepower-hour of 

6 nonmethane hydrocarbons and oxides of nitrogen 

7 and .01 grams per brake horsepower-hour of par8 ticulate matter; and 

9 (B) for buses manufactured in model years 

10 2003 through 2006, 1.8 grams per brake horse11 power-hour of nonmethane hydrocarbons and ox12 ides of nitrogen and .01 grams per brake horse13 power-hour of particulate matter; and 

14 (4) that, in the case of ultra-low sulfur diesel 

15 school buses, emit not more than—

16 (A) for buses manufactured in model years 

17 2002 through 2003, 3.0 grams per brake horse18 power-hour of oxides of nitrogen and .01 grams 

19 per brake horsepower-hour of particulate matter; 

20 and 

21 (B) for buses manufactured in model years 

22 2004 through 2006, 2.5 grams per brake horse23 power-hour of nonmethane hydrocarbons and ox24 ides of nitrogen and .01 grams per brake horse25 power-hour of particulate matter, 
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1 except that under no circumstances shall buses be ac2 quired under this section that emit nonmethane hy3 drocarbons, oxides of nitrogen, or particulate matter 

4 at a rate greater than the best performing technology 

5 of the same class of ultra-low sulfur diesel school buses 

6 commercially available at the time the grant is made. 

7 (h) DEPLOYMENT AND DISTRIBUTION.—The Secretary 

8 shall seek to the maximum extent practicable to achieve na9 tionwide deployment of alternative fuel school buses and 

10 ultra-low sulfur diesel school buses through the program 

11 under this section, and shall ensure a broad geographic dis12 tribution of grant awards, with a goal of no State receiving 

13 more than 10 percent of the grant funding made available 

14 under this section for a fiscal year. 

15 (i) LIMIT ON FUNDING.—The Secretary shall provide 

16 not less than 20 percent and not more than 25 percent of 

17 the grant funding made available under this section for any 

18 fiscal year for the acquisition of ultra-low sulfur diesel 

19 school buses. 

20 (j) REDUCTION OF SCHOOL BUS IDLING.—Each local 

21 educational agency (as defined in section 9101 of the Ele22 mentary and Secondary Education Act of 1965 (20 U.S.C. 

23 7801)) that receives Federal funds under the Elementary 

24 and Secondary Education Act of 1965 (20 U.S.C. 6301 et 

25 seq.) is encouraged to develop a policy, consistent with the 
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1 health, safety, and welfare of students and the proper oper2 ation and maintenance of school buses, to reduce the inci3 dence of unnecessary school bus idling at schools when pick4 ing up and unloading students. 

5 (k) ANNUAL REPORT.—Not later than January 31 of 

6 each year, the Secretary of Energy shall provide a report 

7 evaluating implementation of the program under this sec8 tion to the Congress. Such report shall include the total 

9 number of grant applications received, the number and 

10 types of alternative fuel school buses and ultra-low sulfur 

11 diesel school buses requested in grant applications, a list 

12 of grants awarded and the criteria used to select the grant 

13 recipients, certified engine emission levels of all buses pur14 chased under the program, and any other information the 

15 Secretary considers appropriate. 

16 (l) DEFINITIONS.—For purposes of this section—

17 (1) the term ‘‘alternative fuel school bus’’ means 

18 a school bus powered substantially by electricity (in19 cluding electricity supplied by a fuel cell), or by liq20 uefied natural gas, compressed natural gas, liquefied 

21 petroleum gas, hydrogen, propane, or methanol or eth22 anol at no less than 85 percent by volume; 

23 (2) the term ‘‘idling’’ means operating an engine 

24 while remaining stationary for more than approxi25 mately 3 minutes, except that such term does not
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1 apply to routine stoppages associated with traffic 

2 movement or congestion; and 

3 (3) the term ‘‘ultra-low sulfur diesel school bus’’ 

4 means a school bus powered by diesel fuel which con5 tains sulfur at not more than 15 parts per million. 

6 SEC. 5032. FUEL CELL BUS DEVELOPMENT AND DEM7 ONSTRATION PROGRAM. 

8 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

9 shall establish a program for entering into cooperative 

10 agreements with private sector fuel cell bus developers for 

11 the acquisition of fuel cell-powered school buses, and subse12 quently with not less than 2 units of local government using 

13 natural gas-powered school buses and such private sector 

14 fuel cell bus developers to facilitate the use of fuel cell-pow15 ered school buses. 

16 (b) COST SHARING.—The non-Federal contribution for 

17 activities funded under this section shall be not less than 

18 20 percent for fuel infrastructure development activities. 

19 (c) FUNDING.—No more than $25,000,000 of the 

20 amounts authorized under section 5033 may be used for 

21 carrying out this section for the period encompassing fiscal 

22 years 2003 through 2006. 

23 (d) REPORTS TO CONGRESS.—Not later than 3 years 

24 after the date of the enactment of this Act, and not later 
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1 than October 1, 2006, the Secretary shall transmit to the 

2 Congress a report that—

3 (1) evaluates the process of converting natural 

4 gas infrastructure to accommodate fuel cell-powered 

5 school buses; and 

6 (2) assesses the overall impact on energy con7 servation, public health, and the environment as a re8 sult of this program under this section. 

9 SEC. 5033. AUTHORIZATION OF APPROPRIATIONS. 

10 There are authorized to be appropriated to the Sec11 retary for carrying out this subtitle, to remain available 

12 until expended—

13 (1) $60,000,000 for fiscal year 2004; 

14 (2) $70,000,000 for fiscal year 2005; and 

15 (3) $80,000,000 for fiscal year 2006. 

16 Subtitle D—Advanced Vehicles 

17 SEC. 5041. DEFINITIONS. 

18 For the purposes of this subtitle, the following defini19 tions apply: 

20 (1) ALTERNATIVE FUELED VEHICLE.—The term 

21 ‘‘alternative fueled vehicle’’ means a vehicle propelled 

22 solely on an alternative fuel as defined in section 301 

23 of the Energy Policy Act of 1992 (42 U.S.C. 13211), 

24 except the term does not include any vehicle that the 

25 Secretary determines, by rule, does not yield substan-
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1 tial environmental benefits over a vehicle operating 

2 solely on gasoline or diesel derived from fossil fuels. 

3 (2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

4 vehicle’’ means a vehicle propelled by one or more 

5 cells that convert chemical energy directly into elec6 tricity by combining oxygen with hydrogen fuel which 

7 is stored on board the vehicle in any form and may 

8 or may not require reformation prior to use. 

9 (3) HYBRID VEHICLE.—The term ‘‘hybrid vehi10 cle’’ means a medium or heavy duty vehicle propelled 

11 by an internal combustion engine using any combus12 tible fuel and an onboard rechargeable battery storage 

13 system. 

14 (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 

15 term ‘‘neighborhood electric vehicle’’ means a motor 

16 vehicle that qualifies as both—

17 (A) a low-speed vehicle, as such term is de18 fined in section 571.3(b) of title 49, Code of Fed19 eral Regulations; and 

20 (B) a zero-emission vehicle, as such term is 

21 defined in section 86.1702–99 of title 40, Code of 

22 Federal Regulations. 

23 (5) PILOT PROGRAM.—The term ‘‘pilot program’’ 

24 means the competitive grant program established 

25 under section 5042. 
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1 (6) ULTRA-LOW SULFUR DIESEL VEHICLE.—The 

2 term ‘‘ultra-low sulfur diesel vehicle’’ means a vehicle 

3 manufactured in model years 2002 through 2006 

4 powered by a heavy-duty diesel engine that—

5 (A) is fueled by diesel fuel which contains 

6 sulfur at not more than 15 parts per million; 

7 and 

8 (B) emits not more than the lesser of—

9 (i) for vehicles manufactured in—

10 (I) model years 2002 and 2003, 

11 3.0 grams per brake horsepower-hour of 

12 oxides of nitrogen and .01 grams per 

13 brake horsepower-hour of particulate 

14 matter; and 

15 (II) model years 2004 through 

16 2006, 2.5 grams per brake horsepower17 hour of nonmethane hydrocarbons and 

18 oxides of nitrogen and .01 grams per 

19 brake horsepower-hour of particulate 

20 matter; or 

21 (ii) the emissions of nonmethane hy22 drocarbons, oxides of nitrogen, and particu23 late matter of the best performing tech24 nology of ultra-low sulfur diesel vehicles of 
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1 the same class and application that are 

2 commercially available. 

3 SEC. 5042. PILOT PROGRAM. 

4 (a) ESTABLISHMENT.—The Secretary shall establish a 

5 competitive grant pilot program, to be administered 

6 through the Clean Cities Program of the Department of En7 ergy, to provide not more than 10 geographically dispersed 

8 project grants to State governments, local governments, or 

9 metropolitan transportation authorities to carry out a 

10 project or projects for the purposes described in subsection 

11 (b). 

12 (b) GRANT PURPOSES.—Grants under this section 

13 may be used for the following purposes: 

14 (1) The acquisition of alternative fueled vehicles 

15 or fuel cell vehicles, including—

16 (A) passenger vehicles including neighbor17 hood electric vehicles; and 

18 (B) motorized two-wheel bicycles, scooters, 

19 or other vehicles for use by law enforcement per20 sonnel or other State or local government or met21 ropolitan transportation authority employees. 

22 (2) The acquisition of alternative fueled vehicles, 

23 hybrid vehicles, or fuel cell vehicles, including—

24 (A) buses used for public transportation or 

25 transportation to and from schools;
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1 (B) delivery vehicles for goods or services; 

2 and 

3 (C) ground support vehicles at public air4 ports, including vehicles to carry baggage or 

5 push airplanes away from terminal gates. 

6 (3) The acquisition of ultra-low sulfur diesel ve7 hicles. 

8 (4) Infrastructure necessary to directly support 

9 an alternative fueled vehicle, fuel cell vehicle, or hy10 brid vehicle project funded by the grant, including 

11 fueling and other support equipment. 

12 (5) Operation and maintenance of vehicles, in13 frastructure, and equipment acquired as part of a 

14 project funded by the grant. 

15 (c) APPLICATIONS.—

16 (1) REQUIREMENTS.—The Secretary shall issue 

17 requirements for applying for grants under the pilot 

18 program. At a minimum, the Secretary shall require 

19 that applications be submitted by the head of a State 

20 or local government or a metropolitan transportation 

21 authority, or any combination thereof, and a reg22 istered participant in the Clean Cities Program of the 

23 Department of Energy, and shall include—
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1 (A) a description of the projects proposed in 

2 the application, including how they meet the re3 quirements of this subtitle; 

4 (B) an estimate of the ridership or degree of 

5 use of the projects proposed in the application; 

6 (C) an estimate of the air pollution emis7 sions reduced and fossil fuel displaced as a result 

8 of the projects proposed in the application, and 

9 a plan to collect and disseminate environmental 

10 data, related to the projects to be funded under 

11 the grant, over the life of the projects; 

12 (D) a description of how the projects pro13 posed in the application will be sustainable 

14 without Federal assistance after the completion 

15 of the term of the grant; 

16 (E) a complete description of the costs of 

17 each project proposed in the application, includ18 ing acquisition, construction, operation, and 

19 maintenance costs over the expected life of the 

20 project; 

21 (F) a description of which costs of the 

22 projects proposed in the application will be sup23 ported by Federal assistance under this subtitle; 

24 and 
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1 (G) documentation to the satisfaction of the 

2 Secretary that diesel fuel containing sulfur at 

3 not more than 15 parts per million is available 

4 for carrying out the projects, and a commitment 

5 by the applicant to use such fuel in carrying out 

6 the projects. 

7 (2) PARTNERS.—An applicant under paragraph 

8 (1) may carry out projects under the pilot program 

9 in partnership with public and private entities. 

10 (d) SELECTION CRITERIA.—In evaluating applica11 tions under the pilot program, the Secretary shall consider 

12 each applicant’s previous experience with similar projects 

13 and shall give priority consideration to applications that—

14 (1) are most likely to maximize protection of the 

15 environment; 

16 (2) demonstrate the greatest commitment on the 

17 part of the applicant to ensure funding for the pro18 posed projects and the greatest likelihood that each 

19 project proposed in the application will be main20 tained or expanded after Federal assistance under 

21 this subtitle is completed; and 

22 (3) exceed the minimum requirements of sub23 section (c)(1)(A). 

24 (e) PILOT PROJECT REQUIREMENTS.—
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1 (1) MAXIMUM AMOUNT.—The Secretary shall not 

2 provide more than $20,000,000 in Federal assistance 

3 under the pilot program to any applicant. 

4 (2) COST SHARING.—The Secretary shall not 

5 provide more than 50 percent of the cost, incurred 

6 during the period of the grant, of any project under 

7 the pilot program. 

8 (3) MAXIMUM PERIOD OF GRANTS.—The Sec9 retary shall not fund any applicant under the pilot 

10 program for more than 5 years. 

11 (4) DEPLOYMENT AND DISTRIBUTION.—The Sec12 retary shall seek to the maximum extent practicable 

13 to ensure a broad geographic distribution of project 

14 sites. 

15 (5) TRANSFER OF INFORMATION AND KNOWL16 EDGE.—The Secretary shall establish mechanisms to 

17 ensure that the information and knowledge gained by 

18 participants in the pilot program are transferred 

19 among the pilot program participants and to other 

20 interested parties, including other applicants that 

21 submitted applications. 

22 (f) SCHEDULE.—

23 (1) PUBLICATION.—Not later than 3 months 

24 after the date of the enactment of this Act, the Sec25 retary shall publish in the Federal Register, Com-
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1 merce Business Daily, and elsewhere as appropriate, 

2 a request for applications to undertake projects under 

3 the pilot program. Applications shall be due within 6 

4 months of the publication of the notice. 

5 (2) SELECTION.—Not later than 6 months after 

6 the date by which applications for grants are due, the 

7 Secretary shall select by competitive, peer review all 

8 applications for projects to be awarded a grant under 

9 the pilot program. 

10 (g) LIMIT ON FUNDING.—The Secretary shall provide 

11 not less than 20 percent and not more than 25 percent of 

12 the grant funding made available under this section for the 

13 acquisition of ultra-low sulfur diesel vehicles. 

14 SEC. 5043. REPORTS TO CONGRESS. 

15 (a) INITIAL REPORT.—Not later than 2 months after 

16 the date grants are awarded under this subtitle, the Sec17 retary shall transmit to the Congress a report containing—

18 (1) an identification of the grant recipients and 

19 a description of the projects to be funded; 

20 (2) an identification of other applicants that 

21 submitted applications for the pilot program; and 

22 (3) a description of the mechanisms used by the 

23 Secretary to ensure that the information and knowl24 edge gained by participants in the pilot program are 

25 transferred among the pilot program participants 
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1 and to other interested parties, including other appli2 cants that submitted applications. 

3 (b) EVALUATION.—Not later than 3 years after the 

4 date of the enactment of this Act, and annually thereafter 

5 until the pilot program ends, the Secretary shall transmit 

6 to the Congress a report containing an evaluation of the 

7 effectiveness of the pilot program, including an assessment 

8 of the benefits to the environment derived from the projects 

9 included in the pilot program as well as an estimate of the 

10 potential benefits to the environment to be derived from 

11 widespread application of alternative fueled vehicles and 

12 ultra-low sulfur diesel vehicles. 

13 SEC. 5044. AUTHORIZATION OF APPROPRIATIONS. 

14 There are authorized to be appropriated to the Sec15 retary $200,000,000 to carry out this subtitle, to remain 

16 available until expended. 

17 Subtitle E—Hydrogen Fuel Cell 

18 Heavy-Duty Vehicles 

19 SEC. 5051. DEFINITION. 

20 For the purposes of this subtitle, the term ‘‘advanced 

21 vehicle technologies program’’ means the program created 

22 pursuant to section 5506 of title 49, United States Code. 

23 SEC. 5052. FINDINGS. 

24 The Congress makes the following findings: 
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1 (1) The Department of Energy and the Depart2 ment of Transportation jointly developed the consor3 tium-based advanced vehicle technologies program to 

4 develop energy efficient and clean heavy-duty vehicles 

5 in 1998. 

6 (2) The majority of clean fuel vehicles in oper7 ation today are transit buses. 

8 (3) Hydrogen fuel cell heavy-duty vehicle bus de9 ployments can most appropriately advance hydrogen 

10 fuel cell technology development due to centralized re11 fueling, stable duty cycles, and fixed routes. 

12 (4) Hydrogen fuel cell heavy-duty vehicle bus de13 ployments are the most effective manner in which to 

14 advance technology developments for public aware15 ness, consumption, and acceptance. 

16 SEC. 5053. HYDROGEN FUEL CELL BUSES. 

17 The Secretary of Energy, through the advanced vehicle 

18 technologies program, in coordination with the Secretary 

19 of Transportation, shall advance the development of fuel cell 

20 bus technologies by providing funding for 4 demonstration 

21 sites that—

22 (1) have or will soon have hydrogen infrastruc23 ture for fuel cell bus operation; and 

24 (2) are operated by entities with experience in 

25 the development of fuel cell bus technologies, 
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1 to enable the widespread utilization of fuel cell buses. Such 

2 demonstrations shall address the reliability of fuel cell 

3 heavy-duty vehicles, expense, infrastructure, containment, 

4 storage, safety, training, and other issues. 

5 SEC. 5054. AUTHORIZATION OF APPROPRIATIONS. 

6 There are authorized to be appropriated to the Sec7 retary of Energy $10,000,000 for each of the fiscal years 

8 2004 through 2008 for carrying out this subtitle. 

9 Subtitle F—Miscellaneous 

10 SEC. 5061. RAILROAD EFFICIENCY. 

11 (a) ESTABLISHMENT.—The Secretary shall, in con12 junction with the Secretary of Transportation and the Ad13 ministrator of the Environmental Protection Agency, estab14 lish a public-private research partnership involving the 

15 Federal Government, the railroad industry, locomotive 

16 manufacturers and equipment suppliers, and the research 

17 facility owned by the Federal Railroad Administration and 

18 operated by contract. The goal of the research partnership 

19 shall include developing and demonstrating locomotive tech20 nologies that increase fuel economy, reduce emissions, and 

21 lower costs. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

23 authorized to be appropriated to carry out the requirements 

24 of this section $25,000,000 for fiscal year 2004, $30,000,000 

25 for fiscal year 2005, and $35,000,000 for fiscal year 2006. 
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1 SEC. 5062. MOBILE EMISSION REDUCTIONS TRADING AND 

2 CREDITING. 

3 Within 180 days after the date of enactment of this 

4 Act, the Administrator of the Environmental Protection 

5 Agency shall provide a report to the Congress on the Envi6 ronmental Protection Agency’s experience with the trading 

7 of mobile source emission reduction credits for use by own8 ers and operators of stationary source emission sources to 

9 meet emission offset requirements within a nonattainment 

10 area. The report shall describe—

11 (1) projects approved by the Environmental Pro12 tection Agency that include the trading of mobile 

13 source emission reduction credits for use by sta14 tionary sources in complying with offset require15 ments, including project and stationary sources loca16 tion, volumes of emissions offset and traded, a de17 scription of the sources of mobile emission reduction 

18 credits, and, if available, the cost of the credits; 

19 (2) the significant issues identified by the Envi20 ronmental Protection Agency in its consideration and 

21 approval of trading in such projects; 

22 (3) the requirements for monitoring and assess23 ing the air quality benefits of any approved project; 

24 (4) the statutory authority upon which the Envi25 ronmental Protection Agency has based approval of 

26 such projects; 
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1 (5) an evaluation of how the resolution of issues 

2 in approved projects could be utilized in other 

3 projects; and 

4 (6) any other issues the Environmental Protec5 tion Agency considers relevant to the trading and 

6 generation of mobile source emission reduction credits 

7 for use by stationary sources or for other purposes. 

8 SEC. 5063. IDLE REDUCTION TECHNOLOGIES. 

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

10 (1) IDLE REDUCTION TECHNOLOGY.—The term 

11 ‘‘idle reduction technology’’ means a device or system 

12 of devices utilized to reduce long-duration idling of a 

13 heavy-duty vehicle. 

14 (2) HEAVY-DUTY VEHICLE.—The term ‘‘heavy15 duty vehicle’’ means a vehicle that has a gross vehicle 

16 weight rating greater than 26,000 pounds and is pow17 ered by a diesel engine. 

18 (3) LONG-DURATION IDLING.—The term ‘‘long19 duration idling’’ means the operation of a main drive 

20 engine, for a period greater than 15 consecutive min21 utes, where the main drive engine is not engaged in 

22 gear. Such term does not apply to routine stoppages 

23 associated with traffic movement or congestion. 

24 (b) STUDIES OF THE BENEFITS OF IDLE REDUCTION

25 TECHNOLOGIES.—
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1 (1) POTENTIAL FUEL SAVINGS.—Not later than 

2 90 days after the date of enactment of this section, the 

3 Secretary of Energy shall, in consultation with the 

4 Secretary of Transportation, commence a study to 

5 analyze the potential fuel savings resulting from use 

6 of idle reduction technologies. 

7 (2) RECOGNITION OF BENEFITS OF ADVANCED

8 IDLE REDUCTION TECHNOLOGIES.—Within 90 days 

9 after the date of enactment of this section, the Admin10 istrator of the Environmental Protection Agency is 

11 directed to commence a review of the Agency’s mobile 

12 source air emissions models used under the Clean Air 

13 Act to determine whether such models accurately re14 flect the emissions resulting from long-duration idling 

15 of heavy-duty trucks and other vehicles and engines, 

16 and shall update those models as the Administrator 

17 deems appropriate. Additionally, within 90 days after 

18 the date of enactment of this section, the Adminis19 trator shall commence a review as to the appropriate 

20 emissions reductions credit that should be allotted 

21 under the Clean Air Act for the use of advanced idle 

22 reduction technologies, and whether such credits 

23 should be subject to an emissions trading system, and 

24 shall revise Agency regulations and guidance as the 

25 Administrator deems appropriate. 
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1 (3) IDLING TECHNOLOGIES.—Not later than 180 

2 days after the date of the enactment of this section, 

3 the Secretary of Energy, in consultation with the Sec4 retary of Transportation and the Administrator of the 

5 Environmental Protection Agency, shall commence a 

6 study to analyze where heavy duty and other vehicles 

7 stop for long duration idling. 

8 (c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) of 

9 title 23, United States Code, is amended by adding at the 

10 end the following: ‘‘In instances where an idle reduction 

11 technology is installed onboard a motor vehicle, the max12 imum gross vehicle weight limit and the axle weight limit 

13 for any motor vehicle equipped with an idling reduction 

14 system may be increased by an amount necessary to com15 pensate for the additional weight of the idling reduction 

16 system, except that the weight limit increase shall be no 

17 greater than 400 pounds.’’. 

18 SEC. 5064. STUDY OF AVIATION FUEL CONSERVATION AND 

19 EMISSIONS. 

20 The Administrator of the Federal Aviation Adminis21 tration and the Administrator of the Environmental Protec22 tion Agency shall jointly commence a study within 60 days 

23 after the date of enactment of this Act to identify the impact 

24 of aircraft emissions on air quality in nonattainment areas 

25 and to identify ways to promote fuel conservation measures 
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1 for aviation, enhance fuel efficiency, and reduce emissions. 

2 As part of this study, the Administrator of the Federal 

3 Aviation Administration and the Administrator of the En4 vironmental Protection Agency shall focus on how air traf5 fic management inefficiencies, such as aircraft idling at 

6 airports, result in unnecessary fuel burn and air emissions. 

7 Within 180 days after the commencement of the study, the 

8 Administrator of the Federal Aviation Administration and 

9 the Administrator of the Environmental Protection Agency 

10 shall submit a report to the Committees on Energy and 

11 Commerce and Transportation and Infrastructure of the 

12 House of Representatives and the Committees on Environ13 ment and Public Works and Commerce, Science, and Trans14 portation of the Senate containing the results of the study 

15 and recommendations as to how unnecessary fuel use and 

16 emissions affecting air quality may be reduced, without im17 pacting safety and security, increasing individual aircraft 

18 noise, and taking into account all aircraft emissions and 

19 their relative impact on human health. 

20 SEC. 5065. DIESEL FUELED VEHICLES. 

21 (a) DIESEL COMBUSTION AND AFTER TREATMENT

22 TECHNOLOGIES.—The Secretary of Energy shall accelerate 

23 efforts to improve diesel combustion and after-treatment 

24 technologies for use in diesel fueled motor vehicles. 

25 (b) GOAL.—
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1 (1) COMPLIANCE WITH TIER 2 EMISSION STAND2 ARDS BY 2010.—The Secretary shall carry out sub3 section (a) with a view to developing and dem4 onstrating diesel technology meeting tier 2 emission 

5 standards not later than 2010. 

6 (2) TIER 2 EMISSION STANDARDS DEFINED.—In 

7 this subsection, the term ‘‘tier 2 emission standards’’ 

8 means the motor vehicle emission standards promul9 gated by the Administrator of the Environmental 

10 Protection Agency on February 10, 2000, under sec11 tions 202 and 211 of the Clean Air Act to apply to 

12 passenger cars, light trucks, and larger passenger ve13 hicles of model years after the 2003 vehicle model 

14 year. 

15 SEC. 5066. HYBRID VEHICLES. 

16 (a) IN GENERAL.—Notwithstanding section 102(a)(1) 

17 of title 23, United States Code, a State may, for the purpose 

18 of promoting energy conservation, permit a hybrid vehicle 

19 which is either a passenger automobile or light duty truck 

20 with fewer than 2 occupants to operate in high occupancy 

21 vehicle lanes. 

22 (b) DEFINITION.—In this section, the term ‘‘hybrid ve23 hicle’’ means a motor vehicle which draws propulsion en24 ergy from both—
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1 (1) an internal combustion or heat engine using 

2 combustible fuel; and 

3 (2) an onboard rechargeable energy storage sys4 tem.

5 SEC. 5067. WAIVERS OF ALTERNATIVE FUELED VEHICLE 

6 FUELING REQUIREMENT. 

7 Section 400AA(a)(3)(E) of the Energy Policy and 

8 Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended to 

9 read as follows: 

10 ‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 

11 section shall be operated on alternative fuels unless the Sec12 retary determines that an agency needs a waiver of such 

13 requirement for vehicles in the fleet of the agency in a par14 ticular geographic area where—

15 ‘‘(I) the alternative fuel otherwise required to be 

16 used in the vehicle is not reasonably available to re17 tail purchasers of the fuel, as certified to the Sec18 retary by the head of the agency; or 

19 ‘‘(II) the cost of the alternative fuel otherwise re20 quired to be used in the vehicle is unreasonably more 

21 expensive compared to gasoline, as certified by the 

22 head of the agency. 

23 ‘‘(ii) The Secretary shall monitor compliance with this 

24 subparagraph by all such fleets and shall report annually 

25 to the Congress on the extent to which the requirements of
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1 this subparagraph are being achieved. The report shall in2 clude information on annual reductions achieved of petro3 leum-based fuels and the problems, if any, encountered in 

4 acquiring alternative fuels.’’. 

5 TITLE VI—DOE PROGRAMS 

6 SEC. 6001. PURPOSES. 

7 The purposes of this title are to—

8 (1) contribute to a national energy strategy 

9 through Department of Energy programs that pro10 mote the production and conservation of energy in 

11 partnership with industry; 

12 (2) protect and strengthen the Nation’s economy, 

13 standard of living, and national security by reducing 

14 dependence on imported energy; 

15 (3) meet future needs for energy services at the 

16 lowest total cost to the Nation, giving balanced and 

17 comprehensive consideration to technologies that im18 prove the efficiency of energy end uses and that en19 hance energy supply; 

20 (4) reduce the environmental impacts of energy 

21 production, distribution, transportation, and use; 

22 (5) help increase domestic production of energy, 

23 increase the availability of hydrocarbon reserves, and 

24 lower energy prices; and 
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1 (6) stimulate economic growth and enhance the 

2 ability of United States companies to compete in fu3 ture markets for advanced energy technologies. 

4 SEC. 6002. DEFINITIONS. 

5 For purposes of this title: 

6 (1) DEPARTMENT.—The term ‘‘Department’’ 

7 means the Department of Energy. 

8 (2) DEPARTMENTAL MISSION.—The term ‘‘de9 partmental mission’’ means any of the functions vest10 ed in the Secretary of Energy by the Department of 

11 Energy Organization Act (42 U.S.C. 7101 et seq.) or 

12 other law. 

13 (3) INSTITUTION OF HIGHER EDUCATION.—The 

14 term ‘‘institution of higher education’’ has the mean15 ing given that term in section 101(a) of the Higher 

16 Education Act of 1965 (20 U.S.C. 1001(a)). 

17 (4) JOINT VENTURE.—The term ‘‘joint venture’’ 

18 has the meaning given that term under section 2 of 

19 the National Cooperative Research and Production 

20 Act of 1993 (15 U.S.C. 4301). 

21 (5) NATIONAL LABORATORY.—The term ‘‘Na22 tional Laboratory’’ means any of the following lab23 oratories owned by the Department: 

24 (A) Ames National Laboratory. 

25 (B) Argonne National Laboratory. 
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1 (C) Brookhaven National Laboratory. 

2 (D) Fermi National Laboratory. 

3 (E) Idaho National Engineering and Envi4 ronmental Laboratory. 

5 (F) Lawrence Berkeley National Labora6 tory. 

7 (G) Lawrence Livermore National Labora8 tory. 

9 (H) Los Alamos National Laboratory. 

10 (I) National Energy Technology Labora11 tory. 

12 (J) National Renewable Energy Laboratory. 

13 (K) Oak Ridge National Laboratory. 

14 (L) Pacific Northwest National Laboratory. 

15 (M) Princeton Plasma Physics Laboratory. 

16 (N) Sandia National Laboratories. 

17 (O) Thomas Jefferson National Accelerator 

18 Facility. 

19 (6) NONMILITARY ENERGY LABORATORY.—The 

20 term ‘‘nonmilitary energy laboratory’’ means any of 

21 the following laboratories of the Department: 

22 (A) Ames National Laboratory. 

23 (B) Argonne National Laboratory. 

24 (C) Brookhaven National Laboratory. 

25 (D) Fermi National Laboratory. 
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1 (E) Lawrence Berkeley National Labora2 tory. 

3 (F) Oak Ridge National Laboratory. 

4 (G) Pacific Northwest National Laboratory. 

5 (H) Princeton Plasma Physics Laboratory. 

6 (I) Stanford Linear Accelerator Center. 

7 (J) Thomas Jefferson National Accelerator 

8 Facility. 

9 (7) SECRETARY.—The term ‘‘Secretary’’ means 

10 the Secretary of Energy. 

11 Subtitle A—Energy Efficiency 

12 PART 1—AUTHORIZATION OF APPROPRIATIONS 

13 SEC. 6011. ENERGY EFFICIENCY. 

14 (a) IN GENERAL.—The following sums are authorized 

15 to be appropriated to the Secretary for energy efficiency and 

16 conservation activities, including activities authorized 

17 under this subtitle: 

18 (1) For fiscal year 2003, $560,000,000. 

19 (2) For fiscal year 2004, $616,000,000. 

20 (3) For fiscal year 2005, $695,000,000. 

21 (4) For fiscal year 2006, $772,000,000. 

22 (5) For fiscal year 2007, $865,000,000. 

23 (b) ALLOCATIONS.—From amounts authorized under 

24 subsection (a), the following sums are authorized: 
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1 (1) LIGHTING SYSTEMS.—For activities under 

2 section 6021, $10,000,000 for fiscal year 2003 and 

3 $50,000,000 for each of fiscal years 2004 through 

4 2007. 

5 (2) SECONDARY ELECTRIC VEHICLE BATTERY

6 USE PROGRAM.—For activities under section 6032—

7 (A) for fiscal year 2003, $1,000,000; 

8 (B) for fiscal year 2004, $4,000,000; 

9 (C) for fiscal year 2005, $7,000,000; 

10 (D) for fiscal year 2006, $7,000,000; and 

11 (E) for fiscal year 2007, $7,000,000. 

12 (c) EXTENDED AUTHORIZATION.—There are author13 ized to be appropriated to the Secretary for activities under 

14 section 6021, $50,000,000 for each of fiscal years 2008 

15 through 2012. 

16 (d) LIMITS ON USE OF FUNDS.—None of the funds au17 thorized to be appropriated under this section may be used 

18 for—

19 (1) the promulgation and implementation of en20 ergy efficiency regulations; 

21 (2) the Weatherization Assistance Program 

22 under part A of title IV of the Energy Conservation 

23 and Production Act;
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1 (3) the State Energy Program under part D of 

2 title III of the Energy Policy and Conservation Act; 

3 or 

4 (4) the Federal Energy Management Program 

5 under part 3 of title V of the National Energy Con6 servation Policy Act. 

7 PART 2—LIGHTING SYSTEMS

8 SEC. 6021. NEXT GENERATION LIGHTING INITIATIVE. 

9 (a) IN GENERAL.—The Secretary shall carry out a 

10 Next Generation Lighting Initiative in accordance with this 

11 section to support activities related to advanced solid-state 

12 lighting technologies based on white light emitting diodes. 

13 (b) OBJECTIVES.—The objectives of the initiative shall 

14 be—

15 (1) to develop, by 2012, advanced solid-state 

16 lighting technologies based on white light emitting di17 odes that, compared to incandescent and fluorescent 

18 lighting technologies, are—

19 (A) longer lasting; 

20 (B) more energy-efficient; and 

21 (C) cost-competitive; 

22 (2) to develop an inorganic white light emitting 

23 diode that has an efficiency of 160 lumens per watt 

24 and a 10-year lifetime; and 
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1 (3) to develop an organic white light emitting 

2 diode with an efficiency of 100 lumens per watt with 

3 a 5-year lifetime that—

4 (A) illuminates over a full color spectrum; 

5 (B) covers large areas over flexible surfaces; 

6 and 

7 (C) does not contain harmful pollutants, 

8 such as mercury, typical of fluorescent lamps. 

9 (c) CONSORTIUM.—

10 (1) IN GENERAL.—The Secretary shall establish 

11 the Next Generation Lighting Initiative through a 

12 private consortium (which may include private firms, 

13 trade associations and institutions of higher edu14 cation), which the Secretary shall select through a 

15 competitive process. Each proposed consortium shall 

16 submit to the Secretary such information as the Sec17 retary may require, including a program plan agreed 

18 to by all participants of the consortium. 

19 (2) JOINT VENTURE.—The consortium shall be 

20 structured as a joint venture among the participants 

21 of the consortium. The Secretary shall serve on the 

22 governing council of the consortium. 

23 (3) ELIGIBILITY.—To be eligible to be selected as 

24 the consortium under paragraph (1), an applicant 

25 must be broadly representative of United States solid-
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1 state lighting research, development, and manufac2 turing expertise as a whole. 

3 (4) GRANTS.—(A) The Secretary shall award 

4 grants to the consortium, which the consortium may 

5 disburse to researchers, including those who are not 

6 participants of the consortium. 

7 (B) To receive a grant, the consortium must pro8 vide a description to the Secretary of the proposed ac9 tivities and list the parties that will receive funding. 

10 (5) NATIONAL LABORATORIES.—National Lab11 oratories may participate in the activities described 

12 in this section, and may receive funds from the con13 sortium. 

14 (6) INTELLECTUAL PROPERTY.—Participants in 

15 the consortium and the Federal Government shall 

16 have royalty-free nonexclusive rights to use intellec17 tual property derived from activities funded pursuant 

18 to this subsection. 

19 (d) DEVELOPMENT, DEMONSTRATION, AND COMMER20 CIAL APPLICATION.—The Secretary shall carry out the de21 velopment, demonstration, and commercial application ac22 tivities of the Next Generation Lighting Initiative through 

23 awards to private firms, trade associations, and institu24 tions of higher education. In selecting awardees, the Sec-
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1 retary may give preference to members of the consortium 

2 selected pursuant to subsection (c). 

3 (e) PLANS AND ASSESSMENTS.—(1) The consortium 

4 shall formulate an annual operating plan which shall in5 clude priorities, technical milestones, and plans for tech6 nology transfer, and which shall be subject to approval by 

7 the Secretary. 

8 (2) The Secretary shall enter into an arrangement 

9 with the National Academy of Sciences to conduct periodic 

10 reviews of the Next Generation Lighting Initiative. The 

11 Academy shall review the priorities, technical milestones, 

12 and plans for technology transfer established under para13 graph (1) and evaluate the progress toward achieving them. 

14 The Secretary shall consider the results of such reviews in 

15 evaluating the plans submitted under paragraph (1). 

16 (f) AUDIT.—The Secretary shall retain an inde17 pendent, commercial auditor to perform an audit of the 

18 consortium to determine the extent to which the funds au19 thorized by this section have been expended in a manner 

20 consistent with the purposes of this section. The auditor 

21 shall transmit a report annually to the Secretary, who shall 

22 transmit the report to the Congress, along with a plan to 

23 remedy any deficiencies cited in the report. 

24 (g) SUNSET.—The Next Generation Lighting Initia25 tive shall terminate no later than September 30, 2013. 
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1 (h) DEFINITIONS.—As used in this section: 

2 (1) ADVANCED SOLID-STATE LIGHTING.—The 

3 term ‘‘advanced solid-state lighting’’ means a 

4 semiconducting device package and delivery system 

5 that produces white light using externally applied 

6 voltage. 

7 (2) INORGANIC WHITE LIGHT EMITTING DIODE.—

8 The term ‘‘inorganic white light emitting diode’’ 

9 means an inorganic semiconducting package that pro10 duces white light using externally applied voltage. 

11 (3) ORGANIC WHITE LIGHT EMITTING DIODE.—

12 The term ‘‘organic white light emitting diode’’ means 

13 an organic semiconducting compound that produces 

14 white light using externally applied voltage. 

15 PART 3—VEHICLES 

16 SEC. 6031. DEFINITIONS. 

17 For purposes of this part, the term—

18 (1) ‘‘battery’’ means an energy storage device 

19 that previously has been used to provide motive power 

20 in a vehicle powered in whole or in part by elec21 tricity; and 

22 (2) ‘‘associated equipment’’ means equipment lo23 cated where the batteries will be used that is necessary 

24 to enable the use of the energy stored in the batteries.
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1 SEC. 6032. ESTABLISHMENT OF SECONDARY ELECTRIC VE2 HICLE BATTERY USE PROGRAM. 

3 (a) PROGRAM.—The Secretary shall establish and con4 duct a program for the secondary use of batteries. Such pro5 gram shall be—

6 (1) designed to demonstrate the use of batteries 

7 in secondary application, including utility and com8 mercial power storage and power quality; 

9 (2) structured to evaluate the performance, in10 cluding useful service life and costs, of such batteries 

11 in field operations, and evaluate the necessary sup12 porting infrastructure, including reuse and disposal 

13 of batteries; and 

14 (3) coordinated with ongoing secondary battery 

15 use programs at the National Laboratories and in in16 dustry. 

17 (b) SOLICITATION.—(1) Not later than 6 months after 

18 the date of the enactment of this Act, the Secretary shall 

19 solicit proposals to demonstrate the secondary use of bat20 teries and associated equipment and supporting infrastruc21 ture in geographic locations throughout the United States. 

22 The Secretary may make additional solicitations for pro23 posals if the Secretary determines that such solicitations are 

24 necessary to carry out this section. 

25 (2)(A) Proposals submitted in response to a solicita26 tion under this section shall include—
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1 (i) a description of the project, including the bat2 teries to be used in the project, the proposed locations 

3 and applications for the batteries, the number of bat4 teries to be demonstrated, and the type, characteris5 tics, and estimated life-cycle costs of the batteries com6 pared to other energy storage devices currently used; 

7 (ii) the contribution, if any, of State or local 

8 governments and other persons to the demonstration 

9 project; 

10 (iii) the type of associated equipment and sup11 porting infrastructure to be demonstrated; and 

12 (iv) any other information the Secretary con13 siders appropriate. 

14 (B) If the proposal includes a lease arrangement, the 

15 proposal shall indicate the terms of such lease arrangement 

16 for the batteries and associated equipment. 

17 (c) SELECTION OF PROPOSALS.—(1)(A) The Secretary, 

18 in cooperation with affected Federal Regulatory agencies, 

19 shall, not later than 3 months after the closing date estab20 lished by the Secretary for receipt of proposals under sub21 section (b), select at least 5 proposals to receive financial 

22 assistance under this section. 

23 (B) No one project selected under this section shall re24 ceive more than 25 percent of the funds authorized under 
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1 this section. No more than 3 projects selected under this sec2 tion shall demonstrate the same battery type. 

3 (2) In selecting a proposal under this section, the Sec4 retary shall consider—

5 (A) the ability of the proposer to acquire the bat6 teries and associated equipment and to successfully 

7 manage and conduct the demonstration project, in8 cluding satisfying the reporting requirements set forth 

9 in paragraph (3)(B); 

10 (B) the geographic and climatic diversity of the 

11 projects selected; 

12 (C) the long-term technical and competitive via13 bility of the batteries to be used in the project and of 

14 the original manufacturer of such batteries; 

15 (D) the suitability of the batteries for their in16 tended uses; 

17 (E) the technical performance of the batteries, 

18 including the expected additional useful life and the 

19 batteries’ ability to retain energy; 

20 (F) the environmental effects of the use of and 

21 disposal of the batteries proposed to be used in the 

22 project selected; 

23 (G) the extent of involvement of State or local 

24 government and other persons in the demonstration 

25 project and whether such involvement will—
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1 (i) permit a reduction of the Federal cost 

2 share per project; or 

3 (ii) otherwise be used to allow the Federal 

4 contribution to be provided to demonstrate a 

5 greater number of batteries; and 

6 (H) such other criteria as the Secretary considers 

7 appropriate. 

8 (3) CONDITIONS.—The Secretary shall require that—

9 (A) as a part of a demonstration project, the 

10 users of the batteries provide to the proposer informa11 tion regarding the operation, maintenance, perform12 ance, and use of the batteries, and the proposer pro13 vide such information to the battery manufacturer, 

14 for 3 years after the beginning of the demonstration 

15 project; 

16 (B) the proposer provide to the Secretary and the 

17 Administrator of the United States Environmental 

18 Protection Agency such information regarding the op19 eration, maintenance, performance, and use of the 

20 batteries as the Secretary or the Administrator may 

21 request; 

22 (C) the proposer provide to the Secretary such 

23 information regarding the disposal of the batteries as 

24 the Secretary may require to ensure that the proposer 
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1 disposes of the batteries in accordance with applicable 

2 law; and 

3 (D) the proposer provide at least 50 percent of 

4 the costs associated with the proposal. 

5 Subtitle B—Distributed Energy and 

6 Electric Energy Systems 

7 PART 1—AUTHORIZATION OF APPROPRIATIONS 

8 SEC. 6201. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 

9 SYSTEMS. 

10 The following sums are authorized to be appropriated 

11 to the Secretary for distributed energy and electric energy 

12 systems activities, including activities authorized under 

13 this subtitle: 

14 (1) For fiscal year 2004, $190,000,000. 

15 (2) For fiscal year 2005, $200,000,000. 

16 (3) For fiscal year 2006, $220,000,000. 

17 (4) For fiscal year 2007, $240,000,000. 

18 PART 2—DISTRIBUTED POWER

19 SEC. 6221. STRATEGY. 

20 (a) REQUIREMENT.—Not later than 1 year after the 

21 date of enactment of this Act, the Secretary shall develop 

22 and transmit to the Congress a strategy for a comprehensive 

23 program to develop hybrid distributed power systems that 

24 combine—
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1 (1) one or more renewable electric power genera2 tion technologies of 10 megawatts or less located near 

3 the site of electric energy use; and 

4 (2) nonintermittent electric power generation 

5 technologies suitable for use in a distributed power 

6 system. 

7 (b) CONTENTS.—The strategy shall—

8 (1) identify the needs best met with such hybrid 

9 distributed power systems and the technological bar10 riers to the use of such systems; 

11 (2) provide for the development of methods to de12 sign, test, integrate into systems, and operate such hy13 brid distributed power systems; 

14 (3) include, as appropriate, activities needed for 

15 the adoption of such hybrid distributed power sys16 tems, including energy storage devices and environ17 mental control technologies; and 

18 (4) describe how activities under the strategy 

19 will be integrated with other activities supported by 

20 the Department of Energy related to electric power 

21 technologies. 

22 SEC. 6222. HIGH POWER DENSITY INDUSTRY PROGRAM. 

23 The Secretary shall establish a comprehensive program 

24 to improve energy efficiency of high power density facilities, 

25 including data centers, server farms, and telecommuni-
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1 cations facilities. Such program shall consider technologies 

2 that provide significant improvement in thermal controls, 

3 metering, load management, peak load reduction, or the ef4 ficient cooling of electronics. 

5 SEC. 6223. MICRO-COGENERATION ENERGY TECHNOLOGY. 

6 The Secretary shall make competitive, merit-based 

7 grants to consortia for the development of micro-cogenera8 tion energy technology. The consortia shall explore the use 

9 of small-scale combined heat and power in residential heat10 ing appliances. 

11 PART 3—TRANSMISSION SYSTEMS

12 SEC. 6231. TRANSMISSION INFRASTRUCTURE SYSTEMS. 

13 (a) PROGRAM AUTHORIZED.—The Secretary shall de14 velop a program to promote improved reliability and effi15 ciency of electrical transmission systems. Such program 

16 may include—

17 (1) advanced energy technologies, materials, and 

18 systems; 

19 (2) advanced grid reliability and efficiency tech20 nology development; 

21 (3) technologies contributing to significant load 

22 reductions; 

23 (4) advanced metering, load management, and 

24 control technologies; 
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1 (5) technologies to enhance existing grid compo2 nents; 

3 (6) the development and use of high-temperature 

4 superconductors to—

5 (A) enhance the reliability, operational 

6 flexibility, or power-carrying capability of elec7 tric transmission or distribution systems; or 

8 (B) increase the efficiency of electric energy 

9 generation, transmission, distribution, or storage 

10 systems; 

11 (7) integration of power systems, including sys12 tems to deliver high-quality electric power, electric 

13 power reliability, and combined heat and power; 

14 (8) any other infrastructure technologies, as ap15 propriate; and 

16 (9) technology transfer and education. 

17 (b) PROGRAM PLAN.—Not later than 1 year after the 

18 date of the enactment of this Act, the Secretary, in consulta19 tion with other appropriate Federal agencies, shall prepare 

20 and transmit to Congress a 5-year program plan to guide 

21 activities under this section. In preparing the program 

22 plan, the Secretary shall consult with utilities, energy serv23 ices providers, manufacturers, institutions of higher edu24 cation, other appropriate State and local agencies, environ-
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1 mental organizations, professional and technical societies, 

2 and any other persons the Secretary considers appropriate. 

3 (c) REPORT.—Not later than 2 years after the trans4 mittal of the plan under subsection (b), the Secretary shall 

5 transmit a report to Congress describing the progress made 

6 under this section and identifying any additional resources 

7 needed to continue the development and commercial appli8 cation of transmission infrastructure technologies. 

9 Subtitle C—Renewable Energy 

10 PART 1—AUTHORIZATION OF APPROPRIATIONS 

11 SEC. 6301. RENEWABLE ENERGY. 

12 (a) IN GENERAL.—The following sums are authorized 

13 to be appropriated to the Secretary for renewable energy 

14 activities, including activities authorized under this sub15 title: 

16 (1) For fiscal year 2004, $460,000,000. 

17 (2) For fiscal year 2005, $510,000,000. 

18 (3) For fiscal year 2006, $560,000,000. 

19 (4) For fiscal year 2007, $609,000,000. 

20 (b) BIOENERGY.—From the amounts authorized under 

21 subsection (a), the following sums are authorized to be ap22 propriated to carry out section 6321 and other bioenergy 

23 activities: 

24 (1) For fiscal year 2004, $135,425,000. 

25 (2) For fiscal year 2005, $155,600,000. 
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1 (3) For fiscal year 2006, $167,650,000. 

2 (4) For fiscal year 2007, $180,000,000. 

3 (c) USE OF FUNDS.—

4 (1) BIOENERGY.—Of the funds authorized under 

5 subsection (b), not less than $5,000,000 for each fiscal 

6 year shall be made available for grants to Histori7 cally Black Colleges and Universities, Tribal Colleges, 

8 and Hispanic-Serving Institutions. 

9 (2) RURAL AND REMOTE LOCATIONS.—In car10 rying out this section, the Secretary, in consultation 

11 with the Secretary of Agriculture, shall demonstrate 

12 the production and use of energy from advanced wind 

13 power technology, biomass, geothermal energy systems, 

14 and other renewable energy technologies in order to 

15 assist in delivering electricity to rural and remote lo16 cations.

17 (3) HYDROPOWER.—Of the funds authorized 

18 under subsection (a), not less than $5,000,000 for 

19 each fiscal year shall be made available for dem20 onstration projects of off-stream pumped storage hy21 dropower. 

22 PART 2—BIOENERGY 

23 SEC. 6321. BIOENERGY PROGRAMS. 

24 (a) PROGRAM.—The Secretary shall conduct a pro25 gram to facilitate the production of bioenergy, including—
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1 (1) biopower energy systems; 

2 (2) biofuels; 

3 (3) integrated applications of both biopower and 

4 biofuels; 

5 (4) feedstocks; and 

6 (5) economic analysis. 

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

8 term ‘‘bioenergy’’ includes energy produced from animal 

9 waste and agricultural crops. 

10 Subtitle D—Nuclear Energy 

11 PART 1—AUTHORIZATION OF APPROPRIATIONS 

12 SEC. 6411. NUCLEAR ENERGY. 

13 (a) CORE PROGRAMS.—The following sums are au14 thorized to be appropriated to the Secretary for nuclear en15 ergy activities, regulation of research and development ac16 tivities and nuclear regulatory research, including activi17 ties authorized under this subtitle, other than those de18 scribed in subsection (b): 

19 (1) For fiscal year 2004, $200,000,000. 

20 (2) For fiscal year 2005, $233,000,000. 

21 (3) For fiscal year 2006, $266,000,000. 

22 (4) For fiscal year 2007, $300,000,000. 

23 (b) NUCLEAR INFRASTRUCTURE SUPPORT.—The fol24 lowing sums are authorized to be appropriated to the Sec25 retary for activities under section 6421(f): 
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1 (1) For fiscal year 2004, $120,000,000. 

2 (2) For fiscal year 2005, $125,000,000. 

3 (3) For fiscal year 2006, $130,000,000. 

4 (4) For fiscal year 2007, $135,000,000. 

5 (c) ALLOCATIONS.—From amounts authorized under 

6 subsection (a), the following sums are authorized: 

7 (1) ADVANCED FUEL RECYCLING PROGRAM.—For 

8 activities under section 6431—

9 (A) for fiscal year 2004, $80,000,000; 

10 (B) for fiscal year 2005, $93,000,000; 

11 (C) for fiscal year 2006, $106,000,000; and 

12 (D) for fiscal year 2007, $120,000,000. 

13 (2) UNIVERSITY PROGRAMS.—For activities 

14 under section 6441—

15 (A) for fiscal year 2004, $25,000,000; 

16 (B) for fiscal year 2005, $33,900,000; 

17 (C) for fiscal year 2006, $37,900,000; and 

18 (D) for fiscal year 2007, $43,600,000. 

19 (d) LIMIT ON USE OF FUNDS.—None of the funds au20 thorized under this section may be used for decommis21 sioning the Fast Flux Test Facility. 
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1 PART 2—NUCLEAR ENERGY RESEARCH 

2 PROGRAMS

3 SEC. 6421. NUCLEAR ENERGY RESEARCH PROGRAMS. 

4 (a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 

5 Secretary shall carry out a Nuclear Energy Research Ini6 tiative for research and development related to nuclear en7 ergy. 

8 (b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO9 GRAM.—The Secretary shall carry out a Nuclear Energy 

10 Plant Optimization Program to support research and devel11 opment activities addressing reliability, availability, pro12 ductivity, and component aging in existing nuclear power 

13 plants. 

14 (c) NUCLEAR POWER 2010 PROGRAM.—The Secretary 

15 shall carry out a Nuclear Power 2010 Program, consistent 

16 with recommendations in the October 2001 report entitled 

17 ‘‘A Roadmap to Deploy New Nuclear Power Plants in the 

18 United States by 2010’’ issued by the Nuclear Energy Re19 search Advisory Committee of the Department. The Pro20 gram shall—

21 (1) rely on the expertise and capabilities of the 

22 National Laboratories in the areas of advanced nu23 clear fuels cycles and fuels testing; 

24 (2) pursue an approach that considers a variety 

25 of reactor designs; 
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1 (3) include participation of international col2 laborators in research, development, and design efforts 

3 as appropriate; and 

4 (4) encourage industry participation. 

5 (d) GENERATION IV NUCLEAR ENERGY SYSTEMS INI6 TIATIVE.—The Secretary shall carry out a Generation IV 

7 Nuclear Energy Systems Initiative to develop an overall 

8 technology plan and to support research and development 

9 necessary to make an informed technical decision about the 

10 most promising candidates for eventual commercial appli11 cation. The Initiative shall examine advanced proliferation12 resistant and passively safe reactor designs, including de13 signs that—

14 (1) are economically competitive with other elec15 tric power generation plants; 

16 (2) have higher efficiency, lower cost, and im17 proved safety compared to reactors in operation on 

18 the date of enactment of this Act; 

19 (3) use fuels that are proliferation resistant and 

20 have substantially reduced production of high-level 

21 waste per unit of output; and 

22 (4) utilize improved instrumentation. 

23 (e) REACTOR PRODUCTION OF HYDROGEN.—The Sec24 retary shall carry out research to examine designs for high-
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1 temperature reactors capable of producing large-scale quan2 tities of hydrogen using thermochemical processes. 

3 (f) NUCLEAR INFRASTRUCTURE SUPPORT.—The Sec4 retary shall develop and implement a strategy for the facili5 ties of the Office of Nuclear Energy, Science, and Tech6 nology and shall transmit a report containing the strategy 

7 along with the President’s budget request to the Congress 

8 for fiscal year 2005. Such strategy shall provide a cost-effec9 tive means for—

10 (1) maintaining existing facilities and infra11 structure, as needed; 

12 (2) closing unneeded facilities; 

13 (3) making facility upgrades and modifications; 

14 and 

15 (4) building new facilities. 

16 PART 3—ADVANCED FUEL RECYCLING 

17 SEC. 6431. ADVANCED FUEL RECYCLING PROGRAM. 

18 (a) IN GENERAL.—The Secretary, through the Director 

19 of the Office of Nuclear Energy, Science and Technology, 

20 shall conduct an advanced fuel recycling technology re21 search and development program to evaluate proliferation22 resistant fuel recycling and transmutation technologies 

23 which minimize environmental or public health and safety 

24 impacts as an alternative to aqueous reprocessing tech25 nologies deployed as of the date of enactment of this Act
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1 in support of evaluation of alternative national strategies 

2 for spent nuclear fuel and the Generation IV advanced reac3 tor concepts, subject to annual review by the Secretary’s Nu4 clear Energy Research Advisory Committee or other inde5 pendent entity, as appropriate. Opportunities to enhance 

6 progress of this program through international cooperation 

7 should be sought. 

8 (b) REPORTS.—The Secretary shall report on the ac9 tivities of the advanced fuel recycling technology research 

10 and development program, as part of the Department’s an11 nual budget submission. 

12 PART 4—UNIVERSITY PROGRAMS 

13 SEC. 6441. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER14 ING SUPPORT. 

15 (a) ESTABLISHMENT.—The Secretary shall support a 

16 program to invest in human resources and infrastructure 

17 in the nuclear sciences and engineering and related fields 

18 (including health physics and nuclear and radiochemistry), 

19 consistent with departmental missions related to civilian 

20 nuclear research and development. 

21 (b) DUTIES.—In carrying out the program under this 

22 section, the Secretary shall—

23 (1) establish a graduate and undergraduate fel24 lowship program to attract new and talented stu25 dents; 
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1 (2) establish a Junior Faculty Research Initi2 ation Grant Program to assist institutions of higher 

3 education in recruiting and retaining new faculty in 

4 the nuclear sciences and engineering; 

5 (3) support fundamental nuclear sciences and 

6 engineering research through the Nuclear Engineering 

7 Education Research Program; 

8 (4) encourage collaborative nuclear research 

9 among industry, National Laboratories, and institu10 tions of higher education through the Nuclear Energy 

11 Research Initiative; and 

12 (5) support communication and outreach related 

13 to nuclear science and engineering. 

14 (c) MAINTAINING UNIVERSITY RESEARCH AND TRAIN15 ING REACTORS AND ASSOCIATED INFRASTRUCTURE.—Ac16 tivities under this section may include—

17 (1) converting research reactors currently using 

18 high-enrichment fuels to low-enrichment fuels, up19 grading operational instrumentation, and sharing of 

20 reactors among institutions of higher education; 

21 (2) providing technical assistance, in collabora22 tion with the United States nuclear industry, in reli23 censing and upgrading training reactors as part of a 

24 student training program; and 
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1 (3) providing funding for reactor improvements 

2 as part of a focused effort that emphasizes research, 

3 training, and education. 

4 (d) UNIVERSITY-NATIONAL LABORATORY INTER5 ACTIONS.—The Secretary shall develop—

6 (1) a sabbatical fellowship program for profes7 sors at institutions of higher education to spend ex8 tended periods of time at National Laboratories in 

9 the areas of nuclear science and technology; and 

10 (2) a visiting scientist program in which Na11 tional Laboratory staff can spend time in academic 

12 nuclear science and engineering departments. 

13 The Secretary may provide fellowships for students to spend 

14 time at National Laboratories in the area of nuclear science 

15 with a member of the Laboratory staff acting as a mentor. 

16 (e) OPERATING AND MAINTENANCE COSTS.—Funding 

17 for a research project provided under this section may be 

18 used to offset a portion of the operating and maintenance 

19 costs of a research reactor at an institution of higher edu20 cation used in the research project. 
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1 Subtitle E—Fossil Energy 

2 PART 1—AUTHORIZATION OF APPROPRIATIONS 

3 SEC. 6501. FOSSIL ENERGY. 

4 There are authorized to be appropriated to the Sec5 retary for fossil energy activities, including activities au6 thorized under this subtitle—

7 (1) $523,000,000 for fiscal year 2004; 

8 (2) $542,000,000 for fiscal year 2005; 

9 (3) $558,000,000 for fiscal year 2006; and 

10 (4) $585,000,000 for fiscal year 2007.

11 PART 2—ULTRA-DEEPWATER AND UNCONVEN12 TIONAL NATURAL GAS AND OTHER PETRO13 LEUM RESOURCES 

14 SEC. 6521. PROGRAM AUTHORITY. 

15 (a) IN GENERAL.—The Secretary shall carry out a 

16 program under this part for ultra-deepwater and unconven17 tional natural gas and other petroleum resource exploration 

18 and production, including safe operations and environ19 mental mitigation. 

20 (b) PROGRAM ELEMENTS.—The program under this 

21 part shall address the following areas, including improving 

22 safety and minimizing environmental impacts of activities 

23 within each area: 

24 (1) Ultra-deepwater technology. 

25 (2) Ultra-deepwater architecture. 
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1 (3) Unconventional natural gas and other petro2 leum resource exploration and production technology. 

3 (c) LIMITATION ON LOCATION OF FIELD ACTIVITIES.—

4 Field activities under the program under this part shall 

5 be carried out only—

6 (1) in—

7 (A) areas in the territorial waters of the 

8 United States not under any Outer Continental 

9 Shelf moratorium as of September 30, 2002; 

10 (B) areas onshore in the United States on 

11 public land administered by the Secretary of the 

12 Interior available for oil and gas leasing, where 

13 consistent with applicable law and land use 

14 plans; and 

15 (C) areas onshore in the United States on 

16 State or private land, subject to applicable law; 

17 and 

18 (2) with the approval of the appropriate Federal 

19 or State land management agency or private land 

20 owner. 

21 (d) NATIONAL ENERGY TECHNOLOGY LABORATORY.—

22 The Secretary, through the National Energy Technology 

23 Laboratory, shall carry out activities complementary to ac24 tivities under subsection (b)(1).
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1 (e) CONSULTATION WITH SECRETARY OF THE INTE2 RIOR.—In carrying out this part, the Secretary shall con3 sult regularly with the Secretary of the Interior. 

4 SEC. 6522. ULTRA-DEEPWATER PROGRAM. 

5 (a) IN GENERAL.—The Secretary shall carry out the 

6 activities under paragraphs (1) and (2) of section 6521(b), 

7 to maximize the value of the ultra-deepwater natural gas 

8 and other petroleum resources of the United States by in9 creasing the supply of such resources and by reducing the 

10 cost and increasing the efficiency of exploration for and 

11 production of such resources, while improving safety and 

12 minimizing environmental impacts. 

13 (b) ROLE OF THE SECRETARY.—The Secretary shall 

14 have ultimate responsibility for, and oversight of, all aspects 

15 of the program under this section. 

16 (c) ROLE OF THE PROGRAM CONSORTIUM.—

17 (1) IN GENERAL.—The Secretary shall contract 

18 with a consortium to—

19 (A) manage awards pursuant to subsection 

20 (f)(4); 

21 (B) make recommendations to the Secretary 

22 for project solicitations; 

23 (C) disburse funds awarded under sub24 section (f) as directed by the Secretary in accord-
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1 ance with the annual plan under subsection (e); 

2 and 

3 (D) carry out other activities assigned to 

4 the program consortium by this section. 

5 (2) LIMITATION.—The Secretary may not assign 

6 any activities to the program consortium except as 

7 specifically authorized under this section. 

8 (3) CONFLICT OF INTEREST.—(A) The Secretary 

9 shall establish procedures—

10 (i) to ensure that each board member, offi11 cer, or employee of the program consortium who 

12 is in a decisionmaking capacity under subsection 

13 (f)(3) or (4) shall disclose to the Secretary any 

14 financial interests in, or financial relationships 

15 with, applicants for or recipients of awards 

16 under this section, including those of his or her 

17 spouse or minor child, unless such relationships 

18 or interests would be considered to be remote or 

19 inconsequential; and 

20 (ii) to require any board member, officer, or 

21 employee with a financial relationship or inter22 est disclosed under clause (i) to recuse himself or 

23 herself from any review under subsection (f)(3) 

24 or oversight under subsection (f)(4) with respect 

25 to such applicant or recipient. 
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1 (B) The Secretary may disqualify an applica2 tion or revoke an award under this section if a board 

3 member, officer, or employee has failed to comply 

4 with procedures required under subparagraph (A)(ii). 

5 (d) SELECTION OF THE PROGRAM CONSORTIUM.—

6 (1) IN GENERAL.—The Secretary shall select the 

7 program consortium through an open, competitive 

8 process. 

9 (2) MEMBERS.—The program consortium may 

10 include corporations, institutions of higher education, 

11 National Laboratories, or other research institutions. 

12 After submitting a proposal under paragraph (4), the 

13 program consortium may not add members without 

14 the consent of the Secretary. 

15 (3) TAX STATUS.—The program consortium shall 

16 be an entity that is exempt from tax under section 

17 501(c)(3) of the Internal Revenue Code of 1986. 

18 (4) SCHEDULE.—Not later than 90 days after 

19 the date of enactment of this Act, the Secretary shall 

20 solicit proposals for the creation of the program con21 sortium, which must be submitted not less than 180 

22 days after the date of enactment of this Act. The Sec23 retary shall select the program consortium not later 

24 than 240 days after such date of enactment. 
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1 (5) APPLICATION.—Applicants shall submit a 

2 proposal including such information as the Secretary 

3 may require. At a minimum, each proposal shall—

4 (A) list all members of the consortium; 

5 (B) fully describe the structure of the con6 sortium, including any provisions relating to in7 tellectual property; and 

8 (C) describe how the applicant would carry 

9 out the activities of the program consortium 

10 under this section. 

11 (6) ELIGIBILITY.—To be eligible to be selected as 

12 the program consortium, an applicant must be an en13 tity whose members collectively have demonstrated ca14 pabilities in planning and managing programs in 

15 natural gas or other petroleum exploration or produc16 tion. 

17 (7) CRITERION.—The Secretary may consider the 

18 amount of the fee an applicant proposes to receive 

19 under subsection (g) in selecting a consortium under 

20 this section. 

21 (e) ANNUAL PLAN.—

22 (1) IN GENERAL.—The program under this sec23 tion shall be carried out pursuant to an annual plan 

24 prepared by the Secretary in accordance with para25 graph (2). 
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1 (2) DEVELOPMENT.—(A) Before drafting an an2 nual plan under this subsection, the Secretary shall 

3 solicit specific written recommendations from the pro4 gram consortium for each element to be addressed in 

5 the plan, including those described in paragraph (4). 

6 The Secretary may request that the program consor7 tium submit its recommendations in the form of a 

8 draft annual plan. 

9 (B) The Secretary shall submit the recommenda10 tions of the program consortium under subparagraph 

11 (A) to the Ultra-Deepwater Advisory Committee es12 tablished under section 6525(a) for review, and such 

13 Advisory Committee shall provide to the Secretary 

14 written comments by a date determined by the Sec15 retary. The Secretary may also solicit comments from 

16 any other experts. 

17 (C) The Secretary shall consult regularly with 

18 the program consortium throughout the preparation 

19 of the annual plan. 

20 (3) PUBLICATION.—The Secretary shall transmit 

21 to the Congress and publish in the Federal Register 

22 the annual plan, along with any written comments 

23 received under paragraph (2)(A) and (B). The annual 

24 plan shall be transmitted and published not later 

25 than 60 days after the date of enactment of an Act
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1 making appropriations for a fiscal year for the pro2 gram under this section. 

3 (4) CONTENTS.—The annual plan shall describe 

4 the ongoing and prospective activities of the program 

5 under this section and shall include—

6 (A) a list of any solicitations for awards 

7 that the Secretary plans to issue to carry out ac8 tivities, including the topics for such work, who 

9 would be eligible to apply, selection criteria, and 

10 the duration of awards; and 

11 (B) a description of the activities expected 

12 of the program consortium to carry out sub13 section (f)(4). 

14 (f) AWARDS.—

15 (1) IN GENERAL.—The Secretary shall make 

16 awards to carry out activities under the program 

17 under this section. The program consortium shall not 

18 be eligible to receive such awards, but members of the 

19 program consortium may receive such awards. 

20 (2) PROPOSALS.—The Secretary shall solicit pro21 posals for awards under this subsection in such man22 ner and at such time as the Secretary may prescribe, 

23 in consultation with the program consortium. 

24 (3) REVIEW.—The Secretary shall make awards 

25 under this subsection through a competitive process, 
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1 which shall include a review by individuals selected 

2 by the Secretary. Such individuals shall include, for 

3 each application, Federal officials, the program con4 sortium, and non-Federal experts who are not board 

5 members, officers, or employees of the program consor6 tium or of a member of the program consortium. 

7 (4) OVERSIGHT.—(A) The program consortium 

8 shall oversee the implementation of awards under this 

9 subsection, consistent with the annual plan under 

10 subsection (e), including disbursing funds and moni11 toring activities carried out under such awards for 

12 compliance with the terms and conditions of the 

13 awards. 

14 (B) Nothing in subparagraph (A) shall limit the 

15 authority or responsibility of the Secretary to oversee 

16 awards, or limit the authority of the Secretary to re17 view or revoke awards. 

18 (C) The Secretary shall provide to the program 

19 consortium the information necessary for the program 

20 consortium to carry out its responsibilities under this 

21 paragraph. 

22 (g) FEE.—

23 (1) IN GENERAL.—To compensate the program 

24 consortium for carrying out its activities under this 

25 section, the Secretary shall provide to the program 
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1 consortium a fee in an amount not to exceed 7.5 per2 cent of the amounts awarded under subsection (f) for 

3 each fiscal year. 

4 (2) ADVANCE.—The Secretary shall advance 

5 funds to the program consortium upon selection of the 

6 consortium, which shall be deducted from amounts to 

7 be provided under paragraph (1). 

8 (h) AUDIT.—The Secretary shall retain an inde9 pendent, commercial auditor to determine the extent to 

10 which funds provided to the program consortium, and funds 

11 provided under awards made under subsection (f), have 

12 been expended in a manner consistent with the purposes 

13 and requirements of this part. The auditor shall transmit 

14 a report annually to the Secretary, who shall transmit the 

15 report to Congress, along with a plan to remedy any defi16 ciencies cited in the report. 

17 SEC. 6523. UNCONVENTIONAL NATURAL GAS AND OTHER 

18 PETROLEUM RESOURCES PROGRAM. 

19 (a) IN GENERAL.—The Secretary, after consulting 

20 with appropriate Federal regulatory agencies, shall carry 

21 out activities under section 6521(b)(3), to maximize the 

22 value of the onshore unconventional natural gas and other 

23 petroleum resources of the United States by increasing the 

24 supply of such resources and by reducing the cost and in25 creasing the efficiency of exploration for and production of 
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1 such resources, while improving safety and minimizing en2 vironmental impacts. 

3 (b) AWARDS.—

4 (1) IN GENERAL.—The Secretary shall carry out 

5 this section through awards made through an open, 

6 competitive process. 

7 (2) CONSORTIA.—In carrying out paragraph (1), 

8 the Secretary shall give preference to making awards 

9 to consortia. 

10 (c) AUDIT.—The Secretary shall retain an inde11 pendent, commercial auditor to determine the extent to 

12 which funds provided under awards made under this sec13 tion have been expended in a manner consistent with the 

14 purposes and requirements of this part. The auditor shall 

15 transmit a report annually to the Secretary, who shall 

16 transmit the report to Congress, along with a plan to rem17 edy any deficiencies cited in the report. 

18 (d) FOCUS AREAS.—Awards under this section may 

19 focus on areas including advanced coal-bed methane, deep 

20 drilling, natural gas production from tight sands, natural 

21 gas production from gas shales, innovative exploration and 

22 production techniques, enhanced recovery techniques, and 

23 environmental mitigation of unconventional natural gas 

24 and other petroleum resources exploration and production. 
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1 (e) ACTIVITIES BY THE UNITED STATES GEOLOGICAL

2 SURVEY.—The Secretary of the Interior, through the United 

3 States Geological Survey, shall, where appropriate, carry 

4 out programs to complement the programs under this sec5 tion. 

6 SEC. 6524. ADDITIONAL REQUIREMENTS FOR AWARDS. 

7 (a) DEMONSTRATION PROJECTS.—An application for 

8 an award under this part for a demonstration project shall 

9 describe with specificity the intended commercial use of the 

10 technology to be demonstrated. 

11 (b) FLEXIBILITY IN LOCATING DEMONSTRATION

12 PROJECTS.—Subject to the limitation in section 6521(c), 

13 a demonstration project under this part relating to an 

14 ultra-deepwater technology or an ultra-deepwater architec15 ture may be conducted in deepwater depths. 

16 (c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 

17 award under this part is made to a consortium (other than 

18 the program consortium), the consortium shall provide to 

19 the Secretary a signed contract agreed to by all members 

20 of the consortium describing the rights of each member to 

21 intellectual property used or developed under the award. 

22 (d) TECHNOLOGY TRANSFER.—Each recipient of an 

23 award under this part shall conduct technology transfer ac24 tivities, as appropriate.
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1 SEC. 6525. ADVISORY COMMITTEES. 

2 (a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—

3 (1) ESTABLISHMENT.—Not later than 270 days 

4 after the date of enactment of this section, the Sec5 retary shall establish an advisory committee to be 

6 known as the Ultra-Deepwater Advisory Committee. 

7 (2) MEMBERSHIP.—The advisory committee 

8 under this subsection shall be composed of members 

9 appointed by the Secretary and including—

10 (A) individuals with extensive experience or 

11 operational knowledge of offshore natural gas 

12 and other petroleum exploration and production; 

13 (B) individuals broadly representative of 

14 the affected interests in ultra-deepwater natural 

15 gas and other petroleum production, including 

16 interests in environmental protection and safe 

17 operations; 

18 (C) no individuals who are Federal employ19 ees; and 

20 (D) no individuals who are board members, 

21 officers, or employees of the program consortium. 

22 (3) DUTIES.—The advisory committee under this 

23 subsection shall—

24 (A) advise the Secretary on the development 

25 and implementation of programs under this part 
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1 related to ultra-deepwater natural gas and other 

2 petroleum resources; and 

3 (B) carry out section 6522(e)(2)(B). 

4 (4) COMPENSATION.—A member of the advisory 

5 committee under this subsection shall serve without 

6 compensation but shall receive travel expenses, includ7 ing per diem in lieu of subsistence, in accordance 

8 with applicable provisions under subchapter I of 

9 chapter 57 of title 5, United States Code. 

10 (b) UNCONVENTIONAL RESOURCES TECHNOLOGY AD11 VISORY COMMITTEE.—

12 (1) ESTABLISHMENT.—Not later than 270 days 

13 after the date of enactment of this section, the Sec14 retary shall establish an advisory committee to be 

15 known as the Unconventional Resources Technology 

16 Advisory Committee. 

17 (2) MEMBERSHIP.—The advisory committee 

18 under this subsection shall be composed of members 

19 appointed by the Secretary and including—

20 (A) individuals with extensive experience or 

21 operational knowledge of unconventional natural 

22 gas and other petroleum resource exploration 

23 and production, including independent oil and 

24 gas producers; 
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1 (B) individuals broadly representative of 

2 the affected interests in unconventional natural 

3 gas and other petroleum resource exploration 

4 and production, including interests in environ5 mental protection and safe operations; and 

6 (C) no individuals who are Federal employ7 ees. 

8 (3) DUTIES.—The advisory committee under this 

9 subsection shall advise the Secretary on the develop10 ment and implementation of activities under this 

11 part related to unconventional natural gas and other 

12 petroleum resources. 

13 (4) COMPENSATION.—A member of the advisory 

14 committee under this subsection shall serve without 

15 compensation but shall receive travel expenses, includ16 ing per diem in lieu of subsistence, in accordance 

17 with applicable provisions under subchapter I of 

18 chapter 57 of title 5, United States Code. 

19 (c) PROHIBITION.—No advisory committee established 

20 under this section shall make recommendations on funding 

21 awards to consortia or for specific projects. 

22 SEC. 6526. LIMITS ON PARTICIPATION. 

23 (a) IN GENERAL.—An entity shall be eligible to receive 

24 an award under this part only if the Secretary finds—
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1 (1) that the entity’s participation in the pro2 gram under this part would be in the economic inter3 est of the United States; and 

4 (2) that either—

5 (A) the entity is a United States-owned en6 tity organized under the laws of the United 

7 States; or 

8 (B) the entity is organized under the laws 

9 of the United States and has a parent entity or10 ganized under the laws of a country which af11 fords—

12 (i) to United States-owned entities op13 portunities, comparable to those afforded to 

14 any other entity, to participate in any co15 operative venture similar to those author16 ized under this part; 

17 (ii) to United States-owned entities 

18 local investment opportunities comparable 

19 to those afforded to any other entity; and 

20 (iii) adequate and effective protection 

21 for the intellectual property rights of United 

22 States-owned entities. 

23 (b) SENSE OF CONGRESS AND REPORT.—It is the 

24 Sense of the Congress that ultra-deepwater technology devel25 oped under this part is to be developed primarily for pro-
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1 duction of ultra-deepwater natural gas and other petroleum 

2 resources of the United States, and that this priority is to 

3 be reflected in the terms of grants, contracts, and coopera4 tive agreements entered under this part. As part of the an5 nual Departmental budget submission, the Secretary shall 

6 report on all steps taken to implement the policy described 

7 in this subsection. 

8 SEC. 6527. FUND. 

9 There is hereby established in the Treasury of the 

10 United States a separate fund to be known as the ‘‘Ultra11 Deepwater and Unconventional Natural Gas and Other Pe12 troleum Products Fund’’. 

13 SEC. 6528. SUNSET. 

14 The authority provided by this part shall terminate 

15 on September 30, 2010. 

16 SEC. 6529. DEFINITIONS. 

17 In this part: 

18 (1) DEEPWATER.—The term ‘‘deepwater’’ means 

19 a water depth that is greater than 200 but less than 

20 1,500 meters. 

21 (2) PROGRAM CONSORTIUM.—The term ‘‘pro22 gram consortium’’ means the consortium selected 

23 under section 6522(d). 

24 (3) REMOTE OR INCONSEQUENTIAL.—The term 

25 ‘‘remote or inconsequential’’ has the meaning given
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1 that term in regulations issued by the Office of Gov2 ernment Ethics under section 208(b)(2) of title 18, 

3 United States Code. 

4 (4) ULTRA-DEEPWATER.—The term ‘‘ultra-deep5 water’’ means a water depth that is equal to or great6 er than 1,500 meters. 

7 (5) ULTRA-DEEPWATER ARCHITECTURE.—The 

8 term ‘‘ultra-deepwater architecture’’ means the inte9 gration of technologies for the exploration for, or pro10 duction of, natural gas or other petroleum resources 

11 located at ultra-deepwater depths. 

12 (6) ULTRA-DEEPWATER TECHNOLOGY.—The term 

13 ‘‘ultra-deepwater technology’’ means a discrete tech14 nology that is specially suited to address one or more 

15 challenges associated with the exploration for, or pro16 duction of, natural gas or other petroleum resources 

17 located at ultra-deepwater depths. 

18 (7) UNCONVENTIONAL NATURAL GAS AND OTHER

19 PETROLEUM RESOURCE.—The term ‘‘unconventional 

20 natural gas and other petroleum resource’’ means nat21 ural gas and other petroleum resource located onshore 

22 in an economically inaccessible geological formation. 
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1 Subtitle F—Miscellaneous 

2 SEC. 6601. WASTE REDUCTION AND USE OF ALTERNATIVES. 

3 (a) GRANT AUTHORITY.—The Secretary is authorized 

4 to make a single grant to a qualified institution to examine 

5 and develop the feasibility of burning post-consumer carpet 

6 in cement kilns as an alternative energy source. The pur7 poses of the grant shall include determining—

8 (1) how post-consumer carpet can be burned 

9 without disrupting kiln operations; 

10 (2) the extent to which overall kiln emissions 

11 may be reduced; 

12 (3) the emissions of air pollutants and other rel13 evant environmental impacts; and 

14 (4) how this process provides benefits to both ce15 ment kiln operations and carpet suppliers. 

16 (b) QUALIFIED INSTITUTION.—For the purposes of 

17 subsection (a), a qualified institution is a research-intensive 

18 institution of higher education with demonstrated expertise 

19 in the fields of fiber recycling and logistical modeling of 

20 carpet waste collection and preparation. 

21 (c) WASTE REDUCTION AND USE OF ALTERNATIVES.—

22 There are authorized to be appropriated to the Secretary 

23 to carry out activities under this section $500,000 for fiscal 

24 year 2004. 
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1 SEC. 6602. COAL GASIFICATION. 

2 The Secretary is authorized to provide loan guarantees 

3 for a project to produce energy from a plant using inte4 grated gasification combined cycle technology of at least 400 

5 megawatts in capacity that produces power at competitive 

6 rates in deregulated energy generation markets and that 

7 does not receive any subsidy (direct or indirect) from rate8 payers. 

9 SEC. 6603. PETROLEUM COKE GASIFICATION. 

10 The Secretary is authorized to provide loan guarantees 

11 for at least one petroleum coke gasification polygeneration 

12 project. 

13 SEC. 6604. OTHER BIOPOWER AND BIOENERGY. 

14 The Secretary shall conduct a program to assist in the 

15 planning, design, and implementation of projects to convert 

16 rice straw, rice hulls, sugarcane bagasse, forest thinnings, 

17 and barley grain into biopower and biofuels. 

18 SEC. 6605. TECHNOLOGY TRANSFER. 

19 There are authorized to be appropriated to the Sec20 retary $1,000,000 for a competitively awarded contract, to 

21 an entity with offshore oil and gas management experience, 

22 for the transfer of technologies relating to ultra-deepwater 

23 research and development developed at the Naval Surface 

24 Warfare Center, Carderock Division. 
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1 SEC. 6606. LIMITATION ON LEGAL FEE REIMBURSEMENT. 

2 The Department of Energy shall not, except as re3 quired under a contract entered into before the date of en4 actment of this Act, reimburse any contractor or subcon5 tractor of the Department for any legal fees or expenses in6 curred with respect to a complaint subsequent to—

7 (1) an adverse determination on the merits with 

8 respect to such complaint against the contractor or 

9 subcontractor by the Director of the Department of 

10 Energy’s Office of Hearings and Appeals pursuant to 

11 section 708 of title 10, Code of Federal Regulations, 

12 or by a Department of Labor Administrative Law 

13 Judge pursuant to section 211 of the Energy Reorga14 nization Act of 1974 (42 U.S.C. 5851); or 

15 (2) an adverse final judgment by any State or 

16 Federal court with respect to such complaint against 

17 the contractor or subcontractor for wrongful termi18 nation or retaliation due to the making of disclosures 

19 protected under chapter 12 of title 5, United States 

20 Code, section 211 of the Energy Reorganization Act 

21 of 1974 (42 U.S.C. 5851), or any comparable State 

22 law, 

23 unless the adverse determination or final judgment is re24 versed upon further administrative or judicial review.
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1 SEC. 6607. COMPLEX WELL TECHNOLOGY TESTING FACIL2 ITY. 

3 The Secretary, in coordination with industry leaders 

4 in extended reach drilling technology, shall establish a Com5 plex Well Technology Testing Facility at the Rocky Moun6 tain Oilfield Testing Center to increase the range of ex7 tended drilling technology to 50,000 feet, so that more en8 ergy resources can be realized with fewer drilling facilities. 

9 SEC. 6608. TOTAL INTEGRATED THERMAL SYSTEMS. 

10 The Secretary shall—

11 (1) conduct a study of the benefits of total inte12 grated thermal systems in reducing demand for oil 

13 and protecting the environment; and 

14 (2) examine the feasibility of using total inte15 grated thermal systems in Department of Defense and 

16 other Federal motor vehicle fleets. 

17 SEC. 6609. OIL BYPASS FILTRATION TECHNOLOGY. 

18 The Secretary of Energy and the Administrator of the 

19 Environmental Protection Agency shall—

20 (1) conduct a joint study of the benefits of oil by21 pass filtration technology in reducing demand for oil 

22 and protecting the environment; and 

23 (2) examine the feasibility of using oil bypass 

24 filtration technology in Federal motor vehicle fleets.
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1 TITLE VII—ELECTRICITY 

2 Subtitle A—Transmission Capacity 

3 SEC. 7011. TRANSMISSION INFRASTRUCTURE IMPROVE4 MENT RULEMAKING. 

5 Part II of the Federal Power Act (16 U.S.C. 824 et 

6 seq.) is amended by adding the following new section at 

7 the end thereof: 

8 ‘‘SEC. 215. TRANSMISSION INFRASTRUCTURE IMPROVE9 MENT RULEMAKING. 

10 ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 year 

11 after the enactment of this section, the Commission shall 

12 establish, by rule, incentive-based (including but not limited 

13 to performance-based) transmission rate treatments to pro14 mote capital investment in the enlargement and improve15 ment of facilities for the transmission of electric energy in 

16 interstate commerce as appropriate to—

17 ‘‘(1) promote economically efficient transmission 

18 and generation of electricity; 

19 ‘‘(2) provide a return on equity that attracts 

20 new investment in transmission facilities and reason21 ably reflects the risks taken by public utilities in re22 structuring control of transmission assets; and 

23 ‘‘(3) encourage deployment of transmission tech24 nologies and other measures to increase the capacity 
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1 and efficiency of existing transmission facilities and 

2 improve the operation of such facilities. 

3 The Commission may, from time to time, revise such rule. 

4 ‘‘(b) FUNDING OF CERTAIN FACILITIES.—The rule 

5 promulgated pursuant to this section shall provide that, 

6 upon the request of a regional transmission organization 

7 or other Commission-approved transmission organization, 

8 new transmission facilities that increase the transfer capa9 bility of the transmission system shall be participant fund10 ed. In such rules, the Commission shall also provide guid11 ance as to what types of facilities may be participant fund12 ed. 

13 ‘‘(c) JUST AND REASONABLE RATES.—With respect to 

14 any transmission rate filed with the Commission on or after 

15 the effective date of the rule promulgated under this section, 

16 the Commission shall, in its review of such rate under sec17 tions 205 and 206, apply the rules adopted pursuant to this 

18 section, including any revisions thereto. Nothing in this sec19 tion shall be construed to override, weaken, or conflict with 

20 the procedural and other requirements of this part, includ21 ing the requirement of sections 205 and 206 that all rates, 

22 charges, terms, and conditions be just and reasonable and 

23 not unduly discriminatory or preferential.’’.
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1 SEC. 7012. SITING OF INTERSTATE ELECTRICAL TRANS2 MISSION FACILITIES. 

3 (a) AMENDMENT OF FEDERAL POWER ACT.—Part II 

4 of the Federal Power Act is amended by adding at the end 

5 the following: 

6 ‘‘SEC. 216. SITING OF INTERSTATE ELECTRICAL TRANS7 MISSION FACILITIES 

8 ‘‘(a) TRANSMISSION STUDIES.—Within one year after 

9 the enactment of this section, and every 3 years thereafter, 

10 the Secretary of Energy shall conduct a study of electric 

11 transmission congestion. After considering alternatives and 

12 recommendations from interested parties the Secretary shall 

13 issue a report, based on such study, which may designate 

14 one or more geographic areas experiencing electric energy 

15 transmission congestion as ‘interstate congestion areas’. 

16 ‘‘(b) CONSTRUCTION PERMIT.—The Commission is au17 thorized, after notice and an opportunity for hearing, to 

18 issue permits for the construction or modification of electric 

19 transmission facilities in interstate congestion areas des20 ignated by the Secretary under subsection (a) if the Com21 mission makes each of the following findings: 

22 ‘‘(1) A finding that—

23 ‘‘(A) the State in which the transmission fa24 cilities are to be constructed or modified is with25 out authority to approve the siting of the facili26 ties, or 
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1 ‘‘(B) a State commission or body in the 

2 State in which the transmission facilities are to 

3 be constructed or modified that has authority to 

4 approve the siting of the facilities has withheld 

5 approval, conditioned its approval in such a 

6 manner that the proposed construction or modi7 fication will not significantly reduce trans8 mission congestion in interstate commerce and is 

9 otherwise not economically feasible, or delayed 

10 final approval for more than one year after the 

11 filing of an application seeking approval or one 

12 year after the designation of the relevant inter13 state congestion area, whichever is later. 

14 ‘‘(2) A finding that the facilities to be authorized 

15 by the permit will be used for the transmission of 

16 electric energy in interstate commerce. 

17 ‘‘(3) A finding that the proposed construction or 

18 modification is consistent with the public interest. 

19 ‘‘(4) A finding that the proposed construction or 

20 modification will significantly reduce transmission 

21 congestion in interstate commerce. 

22 The Commission may include in a permit issued under this 

23 section conditions consistent with the public interest. 

24 ‘‘(c) PERMIT APPLICATIONS.—Permit applications 

25 under subsection (b) shall be made in writing to the Com-
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1 mission and verified under oath. The Commission shall 

2 issue rules setting forth the form of the application, the in3 formation it is to contain, and the manner of service of 

4 notice of the permit application upon interested persons. 

5 ‘‘(d) COMMENTS.—In any proceeding before the Com6 mission under subsection (b), the Commission shall afford 

7 each State in which a transmission facility covered by the 

8 permit is or will be located, each affected Federal agency 

9 and Indian tribe, private property owners, and other inter10 ested persons, a reasonable opportunity to present their 

11 views and recommendations with respect to the need for and 

12 impact of a facility covered by the permit. 

13 ‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 

14 subsection (b) for electric transmission facilities to be lo15 cated on property other than property owned by the United 

16 States or a State, if the permit holder cannot acquire by 

17 contract, or is unable to agree with the owner of the prop18 erty to the compensation to be paid for, the necessary right19 of-way to construct or modify such transmission facilities, 

20 the permit holder may acquire the right-of-way by the exer21 cise of the right of eminent domain in the district court 

22 of the United States for the district in which the property 

23 concerned is located, or in the appropriate court of the State 

24 in which the property is located. The practice and proce25 dure in any action or proceeding for that purpose in the
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1 district court of the United States shall conform as nearly 

2 as may be with the practice and procedure in similar action 

3 or proceeding in the courts of the State where the property 

4 is situated. 

5 ‘‘(f) STATE LAW.—Nothing in this section shall pre6 clude any person from constructing any transmission facili7 ties pursuant to State law. 

8 ‘‘(g) COMPLIANCE WITH OTHER LAWS.—Commission 

9 action under this section shall be subject to the National 

10 Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

11 and all other applicable Federal laws. 

12 ‘‘(h) COMPENSATION.—Any exercise of eminent do13 main authority pursuant to this section shall be considered 

14 a taking of private property for which just compensation 

15 is due. Just compensation shall be an amount equal to the 

16 full fair market value of the property taken on the date of 

17 the exercise of eminent domain authority, except that the 

18 compensation shall exceed fair market value if necessary to 

19 make the landowner whole for decreases in the value of any 

20 portion of the land not subject to eminent domain. Any par21 cel of land acquired by eminent domain under this sub22 section shall be transferred back to the owner from whom 

23 it was acquired (or his heirs or assigns) if the land is not 

24 used for power line construction or modification within a 

25 reasonable period of time after the acquisition. Property ac-
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1 quired under this subsection may not be used for any herit2 age area, recreational trail, or park, or for any other pur3 pose (other than power line construction or modification, 

4 and for power line operation and maintenance) without the 

5 consent of the owner of the parcel from whom the property 

6 was acquired (or his heirs or assigns). 

7 ‘‘(i) ERCOT.—Nothing in this section shall be con8 strued to authorize any interconnection with any facility 

9 owned or operated by an entity referred to in section 

10 212(k)(2)(B). 

11 ‘‘(j) RIGHTS OF WAY ON FEDERAL LANDS.—

12 ‘‘(1) LEAD AGENCY.—If an applicant, or pro13 spective applicant, for Federal authorization related 

14 to an electricity transmission or distribution facility 

15 so requests, the Department of Energy (DOE) shall 

16 act as the lead agency for purposes of coordinating all 

17 applicable Federal authorization and related environ18 mental review of the facility. The term ‘Federal au19 thorization’ shall mean any authorization required 

20 under Federal law in order to site a transmission or 

21 distribution facility, including but not limited to such 

22 permits, special use authorizations, certifications, 

23 opinions, or other approvals as may be required, 

24 whether issued by a Federal or a State agency. To the 

25 maximum extent practicable under applicable Federal 
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1 law, the Secretary of Energy shall coordinate this 

2 Federal authorization and review process with any 

3 Indian tribes, multi-State entities, and State agencies 

4 that are responsible for conducting any separate per5 mitting and environmental reviews of the facility, to 

6 ensure timely and efficient review and permit deci7 sions. 

8 ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 

9 agency, the Department of Energy, in consultation 

10 with other Federal and, as appropriate, with Indian 

11 tribes, multi-State entities, and State agencies that 

12 are willing to coordinate their own separate permit13 ting and environmental reviews with the Federal au14 thorization and environmental reviews, shall establish 

15 prompt and binding intermediate milestones and ulti16 mate deadlines for the review of and Federal author17 ization decisions relating to the proposed facility. The 

18 Secretary of Energy shall ensure that once an appli19 cation has been submitted with such data as the Sec20 retary deems necessary, all permit decisions and re21 lated environmental reviews under all applicable Fed22 eral laws shall be completed within 1 year or, if a re23 quirement of another provision of Federal law makes 

24 this impossible, as soon thereafter as is practicable. 

25 The Secretary of Energy also shall provide an expedi-
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1 tious pre-application mechanism for prospective ap2 plicants to confer with the agencies involved to have 

3 each such agency determine and communicate to the 

4 prospective applicant within 60 days of when the pro5 spective applicant submits a request for such informa6 tion concerning—

7 ‘‘(A) the likelihood of approval for a poten8 tial facility; and 

9 ‘‘(B) key issues of concern to the agencies 

10 and public. 

11 ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW

12 AND RECORD OF DECISION.—The Secretary of En13 ergy, in consultation with the affected agencies, shall 

14 prepare a single environmental review document, 

15 which shall be used as the basis for all decisions on 

16 the proposed project under Federal law. The document 

17 may be an environmental assessment or environ18 mental impact statement under the National Envi19 ronmental Policy Act of 1969 if warranted, or such 

20 other form of analysis as may be warranted. DOE 

21 and other agencies shall streamline the review and 

22 permitting of transmission and distribution facilities 

23 within corridors designated under section 503 of the 

24 Federal Land Policy and Management Act (43 U.S.C. 

25 1763) by fully taking into account prior analyses and 
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1 decisions as to the corridors. The document under this 

2 section may consist of or include an environmental 

3 assessment, if allowed by law, or an environmental 

4 impact statement, if warranted or required by law, or 

5 such other form of analysis as warranted, consistent 

6 with any requirement of the National Environmental 

7 Policy Act, the Federal Land Policy and Management 

8 Act, or any other applicable law. Such document shall 

9 include consideration by the relevant agencies of any 

10 applicable criteria or other matters as required under 

11 applicable laws. 

12 ‘‘(4) APPEALS.—In the event that any agency 

13 has denied a Federal authorization required for a 

14 transmission or distribution facility, or has failed to 

15 act by the deadline established by the Secretary pur16 suant to this section for deciding whether to issue the 

17 authorization, the applicant or any State in which 

18 the facility would be located may file an appeal with 

19 the Secretary of Energy, who shall, in consultation 

20 with the affected agency, review the denial or take ac21 tion on the pending application. Based on the overall 

22 record and in consultation with the affected agency, 

23 the Secretary may then either issue the necessary au24 thorization with any appropriate conditions, or deny 

25 the application. The Secretary shall issue a decision
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1 within 90 days of the filing of the appeal. In making 

2 a decision under this paragraph, the Secretary shall 

3 comply with all applicable requirements of Federal 

4 law, including any requirements of the Endangered 

5 Species Act, the Clean Water Act, the National Forest 

6 Management Act, the National Environmental Policy 

7 Act, and the Federal Land Management and Policy 

8 Act. 

9 ‘‘(5) CONFORMING REGULATIONS AND MEMO10 RANDA OF AGREEMENT.—Not later than 18 months 

11 after the date of enactment of this section, the Sec12 retary of Energy shall issue any regulations necessary 

13 to implement the foregoing provisions. Not later than 

14 1 year after the date of enactment of this section, the 

15 Secretary and the heads of all relevant Federal de16 partments and non-departmental agencies shall, and 

17 interested Indian tribes, multi-State entities, and 

18 State agencies may, enter into Memoranda of Agree19 ment to ensure the timely and coordinated review and 

20 permitting of electricity transmission and distribu21 tion facilities. The head of each Federal department 

22 or non-departmental agency with approval authority 

23 shall designate a senior responsible official and dedi24 cate sufficient other staff and resources to ensure that 
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1 the DOE regulations and any Memoranda are fully 

2 implemented. 

3 ‘‘(6) MISCELLANEOUS.—Each Federal authoriza4 tion for an electricity transmission or distribution fa5 cility shall be issued for a duration, as determined by 

6 the Secretary of Energy, commensurate with the an7 ticipated use of the facility and with appropriate au8 thority to manage the right-of-way for reliability and 

9 environmental protection. Further, when such author10 izations expire, they shall be reviewed for renewal 

11 taking fully into account reliance on such electricity 

12 infrastructure, recognizing its importance for public 

13 health, safety and economic welfare and as a legiti14 mate use of Federal lands. 

15 ‘‘(7) MAINTAINING AND ENHANCING THE TRANS16 MISSION INFRASTRUCTURE.—In exercising the respon17 sibilities under this section, the Secretary of Energy 

18 shall consult regularly with the Federal Energy Regu19 latory Commission (FERC) and FERC-approved Re20 gional Transmission Organizations and Independent 

21 System Operators. 

22 ‘‘(k) INTERSTATE COMPACTS.—The consent of Con23 gress is hereby given for States to enter into interstate com24 pacts establishing regional transmission siting agencies to 

25 facilitate coordination among the States within such areas 
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1 for purposes of siting future electric energy transmission 

2 facilities and to carry out State electric energy trans3 mission siting responsibilities. The Secretary of Energy 

4 may provide technical assistance to regional transmission 

5 siting agencies established under this subsection. 

6 ‘‘(l) SAVINGS CLAUSE.—Nothing in this section shall 

7 be construed to affect any requirement of the environmental 

8 laws of the United States, including, but not limited to, 

9 the National Environmental Policy Act of 1969. This sec10 tion shall not apply to any component of the National Wil11 derness Preservation System, the National Wild and Scenic 

12 Rivers System, or the National Park system (including Na13 tional Monuments therein).’’. 

14 (b) FEDERAL CORRIDORS.—The Secretary of the Inte15 rior, the Secretary of Energy, the Secretary of Agriculture, 

16 and the Chairman of the Council on Environmental Qual17 ity shall, within 90 days of the date of enactment of this 

18 subsection, submit a joint report to Congress identifying the 

19 following: 

20 (1) all existing designated transmission and dis21 tribution corridors on Federal land and the status of 

22 work related to proposed transmission and distribu23 tion corridor designations, the schedule for completing 

24 such work, any impediments to completing the work, 
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1 and steps that Congress could take to expedite the 

2 process; 

3 (2) the number of pending applications to locate 

4 transmission and distribution facilities on Federal 

5 lands, key information relating to each such facility, 

6 how long each application has been pending, the 

7 schedule for issuing a timely decision as to each facil8 ity, and progress in incorporating existing and new 

9 such rights-of-way into relevant land use and resource 

10 management plans or their equivalent; and 

11 (3) the number of existing transmission and dis12 tribution rights-of-way on Federal lands that will 

13 come up for renewal within the following 5, 10, and 

14 15 year periods, and a description of how the Secre15 taries plan to manage such renewals. 

16 Subtitle B—Transmission 

17 Operation 

18 SEC. 7021. OPEN ACCESS TRANSMISSION BY CERTAIN UTILI19 TIES. 

20 Part II of the Federal Power Act (16 U.S.C. 824 et 

21 seq.) is amended by inserting after section 211 the following: 
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1 ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT2 TING UTILITIES. 

3 ‘‘(a) IN GENERAL.—Subject to section 212(h), the 

4 Commission may, by rule or order, require an unregulated 

5 transmitting utility to provide transmission services—

6 ‘‘(1) at rates that are comparable to those that 

7 the unregulated transmitting utility charges itself, 

8 and 

9 ‘‘(2) on terms and conditions (not relating to 

10 rates) that are comparable to those under which such 

11 unregulated transmitting utility provides trans12 mission services to itself and that are not unduly dis13 criminatory or preferential. 

14 ‘‘(b) EXEMPTIONS.—

15 ‘‘(1) IN GENERAL.—The Commission shall ex16 empt from any rule or order under this subsection 

17 any unregulated transmitting utility that—

18 ‘‘(A)(i) sells no more than 4,000,000 mega19 watt hours of electricity per year; and 

20 ‘‘(ii) is a distribution utility; or 

21 ‘‘(B) does not own or operate any trans22 mission facilities that are necessary for oper23 ating an interconnected transmission system (or 

24 any portion thereof); or 

25 ‘‘(C) meets other criteria the Commission 

26 determines to be in the public interest.
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1 ‘‘(2) LOCAL DISTRIBUTION.— The requirements 

2 of subsection (a) shall not apply to facilities used in 

3 local distribution. 

4 ‘‘(c) RATE CHANGING PROCEDURES.—The rate chang5 ing procedures applicable to public utilities under sub6 sections (c) and (d) of section 205 are applicable to unregu7 lated transmitting utilities for purposes of this section. 

8 ‘‘(d) REMAND.—In exercising its authority under 

9 paragraph (1), the Commission may remand transmission 

10 rates to an unregulated transmitting utility for review and 

11 revision where necessary to meet the requirements of sub12 section (a). 

13 ‘‘(e) SECTION 211 REQUESTS.—The provision of 

14 transmission services under subsection (a) does not preclude 

15 a request for transmission services under section 211. 

16 ‘‘(f) DEFINITIONS.—For purposes of this section—

17 ‘‘(1) The term ‘unregulated transmitting utility’ 

18 means an entity that—

19 ‘‘(A) owns or operates facilities used for the 

20 transmission of electric energy in interstate com21 merce, and 

22 ‘‘(B) is either an entity described in section 

23 201(f) or a rural electric cooperative. 
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1 ‘‘(2) The term ‘distribution utility’ means an 

2 unregulated transmitting utility that serves at least 

3 ninety percent of its electric customers at retail.’’. 

4 SEC. 7022. REGIONAL TRANSMISSION ORGANIZATIONS. 

5 (a) SENSE OF THE CONGRESS ON RTOS.—It is the 

6 sense of Congress that, in order to promote fair, open access 

7 to electric transmission service, benefit retail consumers, fa8 cilitate wholesale competition, improve efficiencies in trans9 mission grid management, promote grid reliability, remove 

10 opportunities for unduly discriminatory or preferential 

11 transmission practices, and provide for the efficient devel12 opment of transmission infrastructure needed to meet the 

13 growing demands of competitive wholesale power markets, 

14 all transmitting utilities in interstate commerce should vol15 untarily become members of independently administered re16 gional transmission organizations that have operational 

17 control of interstate transmission facilities and do not own 

18 or control generation facilities used to supply electric en19 ergy for sale at wholesale. 

20 (b) SENSE OF THE CONGRESS ON CAPITAL INVEST21 MENT.—It is the sense of the Congress that the Federal En22 ergy Regulatory Commission should provide to any trans23 mitting utility that becomes a member of an operational 

24 regional transmitting organization approved by the Com25 mission a return on equity sufficient to attract new invest-
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1 ment capital for expansion of transmission capacity, in ac2 cordance with sections 205 and 206 of the Federal Power 

3 Act (16 U.S.C. 824d and 824e), including the requirement 

4 that rates be just and reasonable. 

5 (c) REPORT ON PENDING APPLICATIONS.—Not later 

6 than 120 days after the date of enactment of this section, 

7 the Federal Energy Regulatory Commission shall submit to 

8 the Committee on Energy and Commerce of the United 

9 States House of Representatives and the Committee on En10 ergy and Natural Resources of the United States Senate a 

11 report containing the following: 

12 (1) A list of all regional transmission organiza13 tion applications filed at the Commission pursuant to 

14 the Commission’s Order No. 2000, including an iden15 tification of each public utility and other entity in16 cluded within the proposed membership of the re17 gional transmission organization. 

18 (2) A table showing the date each such applica19 tion was filed, the date of any revised filings of such 

20 application, the date of each preliminary or final 

21 Commission order regarding such application, and a 

22 statement of whether the application has been rejected, 

23 preliminarily approved, finally approved, or has 

24 some other status (including a description of that sta25 tus). 
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1 (3) For any application that has not been fi2 nally approved by the Commission, a detailed de3 scription of every aspect of the application that the 

4 Commission has determined does not conform to the 

5 requirements of Order No. 2000. 

6 (4) For any application that has not been fi7 nally approved by the Commission, an explanation 

8 by the Commission of why the items described pursu9 ant to paragraph (3) constitute material noncompli10 ance with the requirements of the Commission’s Order 

11 No. 2000 sufficient to justify denial of approval by 

12 the Commission. 

13 (5) For all regional transmission organization 

14 applications filed pursuant to the Commission’s 

15 Order No. 2000, whether finally approved or not—

16 (A) a discussion of that regional trans17 mission organization’s efforts to minimize rate 

18 seams between itself and—

19 (i) other regional transmission organi20 zations; and 

21 (ii) entities not participating in a re22 gional transmission organization; and 

23 (B) a discussion of the impact of such seams 

24 on consumers and wholesale competition; and 
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1 (C) a discussion of minimizing cost-shifting 

2 on consumers. 

3 (d) FEDERAL UTILITY PARTICIPATION IN RTOS.—

4 (1) DEFINITIONS.—For purposes of this sec5 tion—

6 (A) The term ‘‘appropriate Federal regu7 latory authority’’ means— 

8 (i) with respect to a Federal power 

9 marketing agency, the Secretary of Energy, 

10 except that the Secretary may designate the 

11 Administrator of a Federal power mar12 keting agency to act as the appropriate Fed13 eral regulatory authority with respect to the 

14 transmission system of that Federal power 

15 marketing agency; and 

16 (ii) with respect to the Tennessee Val17 ley Authority, the Board of Directors of the 

18 Tennessee Valley Authority. 

19 (B) The term ‘‘Federal utility’’ means a 

20 Federal power marketing agency or the Ten21 nessee Valley Authority. 

22 (C) The term ‘‘transmission system’’ means 

23 electric transmission facilities owned, leased, or 

24 contracted for by the United States and operated 

25 by a Federal utility.
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1 (2) TRANSFER.—The appropriate Federal regu2 latory authority is authorized to enter into a con3 tract, agreement or other arrangement transferring 

4 control and use of all or part of the Federal utility’s 

5 transmission system to a regional transmission orga6 nization approved by the Federal Energy Regulatory 

7 Commission. Such contract, agreement or arrange8 ment shall include—

9 (A) performance standards for operation 

10 and use of the transmission system that the head 

11 of the Federal utility determines necessary or ap12 propriate, including standards that assure recov13 ery of all the Federal utility’s costs and expenses 

14 related to the transmission facilities that are the 

15 subject of the contract, agreement or other ar16 rangement, consistency with existing contracts 

17 and third-party financing arrangements, and 

18 consistency with said Federal utility’s statutory 

19 authorities, obligations, and limitations; 

20 (B) provisions for monitoring and oversight 

21 by the Federal utility of the regional trans22 mission organization’s fulfillment of the terms 

23 and conditions of the contract, agreement or 

24 other arrangement, including a provision that 

25 may provide for the resolution of disputes 
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1 through arbitration or other means with the re2 gional transmission organization or with other 

3 participants, notwithstanding the obligations 

4 and limitations of any other law regarding arbi5 tration; and 

6 (C) a provision that allows the Federal util7 ity to withdraw from the regional transmission 

8 organization and terminate the contract, agree9 ment or other arrangement in accordance with 

10 its terms. 

11 Neither this section, actions taken pursuant to it, nor 

12 any other transaction of a Federal utility using a re13 gional transmission organization shall serve to confer 

14 upon the Federal Energy Regulatory Commission ju15 risdiction or authority over the Federal utility’s elec16 tric generation assets, electric capacity or energy that 

17 the Federal utility is authorized by law to market, or 

18 the Federal utility’s power sales activities. 

19 (3) EXISTING STATUTORY AND OTHER OBLIGA20 TIONS.—

21 (A) SYSTEM OPERATION REQUIREMENTS.—

22 Any statutory provision requiring or authorizing 

23 a Federal utility to transmit electric power or to 

24 construct, operate or maintain its transmission 

25 system shall not be construed to prohibit a trans-
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1 fer of control and use of its transmission system 

2 pursuant to, and subject to all requirements of 

3 paragraph (2). 

4 (B) OTHER OBLIGATIONS.—This subsection 

5 shall not be construed to—

6 (i) suspend, or exempt any Federal 

7 utility from, any provision of existing Fed8 eral law, including but not limited to any 

9 requirement or direction relating to the use 

10 of the Federal utility’s transmission system, 

11 environmental protection, fish and wildlife 

12 protection, flood control, navigation, water 

13 delivery, or recreation; or 

14 (ii) authorize abrogation of any con15 tract or treaty obligation. 

16 SEC. 7023. NATIVE LOAD. 

17 Part II of the Federal Power Act (16 U.S.C. 824 et 

18 seq.) is amended by adding the following new section at 

19 the end thereof: 

20 ‘‘SEC. 217. SERVICE OBLIGATIONS OF LOAD-SERVING ENTI21 TIES. 

22 ‘‘(a) IN GENERAL.—In exercising authority under this 

23 Act, the Commission shall ensure that any load-serving en24 tity that either—
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1 ‘‘(1) owns transmission facilities for the trans2 mission of electric energy in interstate commerce used 

3 to purchase or deliver electric energy to meet—

4 ‘‘(A) a service obligation to customers; or 

5 ‘‘(B) an existing wholesale contractual obli6 gation; or 

7 ‘‘(2) holds a contract or service agreement for 

8 firm transmission service used to purchase or deliver 

9 electric energy to meet—

10 ‘‘(A) a service obligation to customers; or 

11 ‘‘(B) an existing wholesale contractual obli12 gation 

13 shall be entitled to use such transmission facilities or equiv14 alent transmission rights to meet such obligations before 

15 transmission capacity is made available for other uses. 

16 ‘‘(b) USE BY SUCCESSOR IN INTEREST.—To the extent 

17 that all or a portion of the service obligation or contractual 

18 obligation covered by subsection (a) is transferred to an19 other load serving entity, the successor shall be entitled to 

20 use such transmission facilities or firm transmission rights 

21 associated with the transferred service obligation consistent 

22 with subsection (a). Subsequent transfers to another load 

23 serving entity, or back to the original load-serving entity, 

24 shall be entitled to the same rights. 
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1 ‘‘(c) OTHER ENTITIES.—The Commission may exer2 cise authority under this Act to make transmission rights 

3 not used to meet an obligation covered by subsection (a) 

4 available to other entities in a manner determined by the 

5 Commission to be not unduly discriminatory or pref6 erential. 

7 ‘‘(d) DEFINITIONS.—For the purposes of this section: 

8 ‘‘(1) The term ‘load-serving entity’ means an 

9 electric utility, transmitting utility or Federal power 

10 marketing agency that has an obligation under Fed11 eral, State, or local law, or under long-term contracts, 

12 to provide electric service to either—

13 ‘‘(A) electric consumers (as defined in sec14 tion 3(5) of the Public Utility Regulatory Poli15 cies Act of 1978 (16 U.S.C. 2602(5)); or 

16 ‘‘(B) an electric utility as defined in section 

17 3(4) of the Public Utility Regulatory Policies Act 

18 of 1978 (16 U.S.C. 2602(5)) that has an obliga19 tion to provide electric service to electric con20 sumers. 

21 Such obligations shall be deemed ‘service obligations’. 

22 ‘‘(2) The term ‘existing wholesale contractual ob23 ligation’ means an obligation under a firm long-term 

24 wholesale contract that was in effect on March 28, 

25 2003. A contract modification after March 28, 2003
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1 (other than one that increases the quantity of electric 

2 energy sold under the contract) shall not affect the 

3 status of such contract as an existing wholesale con4 tractual obligation. 

5 ‘‘(e) RELATIONSHIP TO OTHER PROVISIONS.—To the 

6 extent that a transmitting utility reserves transmission ca7 pacity (or reserves the equivalent amount of tradable trans8 mission rights) to provide firm transmission service to meet 

9 service obligations or firm long-term wholesale contractual 

10 obligations pursuant to subsection (a), that transmitting 

11 utility shall not be considered as engaging in undue dis12 crimination or preference under this Act. 

13 ‘‘(f) JURISDICTION.—This section shall not apply to 

14 an entity located in an area referred to in section 

15 212(k)(2)(A).

16 ‘‘(g) SAVINGS CLAUSE.—Nothing in this section shall 

17 affect any allocation of transmission rights by the PJM 

18 Interconnection, the New York Independent System Oper19 ator, the New England Independent System Operator, the 

20 Midwest Independent System Operator, or the California 

21 Independent System Operator. Nothing in this section shall 

22 provide a basis for abrogating any contract for firm trans23 mission service or rights in effect as of the date of enactment 

24 of this section.’’.
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1 Subtitle C—Reliability 

2 SEC. 7031. ELECTRIC RELIABILITY STANDARDS. 

3 Part II of the Federal Power Act (16 U.S.C 824 et 

4 seq.) is amended by inserting the following new section at 

5 the end thereof: 

6 ‘‘SEC. 218. ELECTRIC RELIABILITY. 

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

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

9 ‘‘(A) facilities and control systems necessary 

10 for operating an interconnected electric energy 

11 transmission network (or any portion thereof); 

12 and 

13 ‘‘(B) electric energy from generation facili14 ties needed to maintain transmission system re15 liability. 

16 The term does not include facilities used in the local 

17 distribution of electric energy. 

18 ‘‘(2) The terms ‘Electric Reliability Organiza19 tion’ and ‘ERO’ mean the organization certified by 

20 the Commission under subsection (c) the purpose of 

21 which is to establish and enforce reliability standards 

22 for the bulk-power system, subject to Commission re23 view. 

24 ‘‘(3) The term ‘reliability standard’ means a re25 quirement, approved by the Commission under this 
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1 section, to provide for reliable operation of the bulk2 power system. The term includes requirements for the 

3 operation of existing bulk-power system facilities and 

4 the design of planned additions or modifications to 

5 such facilities to the extent necessary to provide for 

6 reliable operation of the bulk-power system, but the 

7 term does not include any requirement to enlarge 

8 such facilities or to construct new transmission ca9 pacity or generation capacity. 

10 ‘‘(4) The term ‘reliable operation’ means oper11 ating the elements of the bulk-power system within 

12 equipment and electric system thermal, voltage, and 

13 stability limits so that instability, uncontrolled sepa14 ration, or cascading failures of such system will not 

15 occur as a result of a sudden disturbance or unantici16 pated failure of system elements. 

17 ‘‘(5) The term ‘Interconnection’ means a geo18 graphic area in which the operation of bulk-power 

19 system components is synchronized such that the fail20 ure of one or more of such components may adversely 

21 affect the ability of the operators of other components 

22 within the system to maintain reliable operation of 

23 the facilities within their control. 

24 ‘‘(6) The term ‘transmission organization’ means 

25 a regional transmission organization, independent
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1 system operator, independent transmission provider, 

2 or other transmission organization finally approved 

3 by the Commission for the operation of transmission 

4 facilities. 

5 ‘‘(7) The term ‘regional entity’ means an entity 

6 having enforcement authority pursuant to subsection 

7 (e)(4). 

8 ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 

9 Commission shall have jurisdiction, within the United 

10 States, over the ERO certified by the Commission under 

11 subsection (c), any regional entities, and all users, owners 

12 and operators of the bulk-power system, including but not 

13 limited to the entities described in section 201(f), for pur14 poses of approving reliability standards established under 

15 this section and enforcing compliance with this section. All 

16 users, owners and operators of the bulk-power system shall 

17 comply with reliability standards that take effect under this 

18 section. 

19 ‘‘(2) The Commission shall issue a final rule to imple20 ment the requirements of this section not later than 180 

21 days after the date of enactment of this section. 

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

23 Commission rule under subsection (b)(2), any person may 

24 submit an application to the Commission for certification 

25 as the Electric Reliability Organization (ERO). The Com-
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1 mission may certify one such ERO if the Commission deter2 mines that such ERO—

3 ‘‘(1) has the ability to develop and enforce, sub4 ject to subsection (e)(2), reliability standards that 

5 provide for an adequate level of reliability of the bulk6 power system; 

7 ‘‘(2) has established rules that—

8 ‘‘(A) assure its independence of the users 

9 and owners and operators of the bulk-power sys10 tem, while assuring fair stakeholder representa11 tion in the selection of its directors and balanced 

12 decisionmaking in any ERO committee or subor13 dinate organizational structure; 

14 ‘‘(B) allocate equitably reasonable dues, fees, 

15 and other charges among end users for all activi16 ties under this section; 

17 ‘‘(C) provide fair and impartial procedures 

18 for enforcement of reliability standards through 

19 the imposition of penalties in accordance with 

20 subsection (e) (including limitations on activi21 ties, functions, or operations, or other appro22 priate sanctions); 

23 ‘‘(D) provide for reasonable notice and op24 portunity for public comment, due process, open25 ness, and balance of interests in developing reli-
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1 ability standards and otherwise exercising its 

2 duties; and 

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

4 appropriate steps to gain recognition in Canada 

5 and Mexico. 

6 ‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reli7 ability Organization shall file each reliability standard or 

8 modification to a reliability standard that it proposes to 

9 be made effective under this section with the Commission. 

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

11 a proposed reliability standard or modification to a reli12 ability standard if it determines that the standard is just, 

13 reasonable, not unduly discriminatory or preferential, and 

14 in the public interest. The Commission shall give due weight 

15 to the technical expertise of the Electric Reliability Organi16 zation with respect to the content of a proposed standard 

17 or modification to a reliability standard and to the tech18 nical expertise of a regional entity organized on an Inter19 connection-wide basis with respect to a reliability standard 

20 to be applicable within that Interconnection, but shall not 

21 defer with respect to the effect of a standard on competition. 

22 A proposed standard or modification shall take effect upon 

23 approval by the Commission. 

24 ‘‘(3) The Electric Reliability Organization shall 

25 rebuttably presume that a proposal from a regional entity 
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1 organized on an Interconnection-wide basis for a reliability 

2 standard or modification to a reliability standard to be ap3 plicable on an Interconnection-wide basis is just, reason4 able, and not unduly discriminatory or preferential, and 

5 in the public interest. 

6 ‘‘(4) The Commission shall remand to the Electric Re7 liability Organization for further consideration a proposed 

8 reliability standard or a modification to a reliability stand9 ard that the Commission disapproves in whole or in part. 

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

11 complaint, may order the Electric Reliability Organization 

12 to submit to the Commission a proposed reliability stand13 ard or a modification to a reliability standard that address14 es a specific matter if the Commission considers such a new 

15 or modified reliability standard appropriate to carry out 

16 this section. 

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

18 shall include fair processes for the identification and timely 

19 resolution of any conflict between a reliability standard and 

20 any function, rule, order, tariff, rate schedule, or agreement 

21 accepted, approved, or ordered by the Commission applica22 ble to a transmission organization. Such transmission orga23 nization shall continue to comply with such function, rule, 

24 order, tariff, rate schedule or agreement accepted approved, 

25 or ordered by the Commission until—
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1 ‘‘(A) the Commission finds a conflict exists be2 tween a reliability standard and any such provision; 

3 ‘‘(B) the Commission orders a change to such 

4 provision pursuant to section 206 of this part; and 

5 ‘‘(C) the ordered change becomes effective under 

6 this part. 

7 If the Commission determines that a reliability standard 

8 needs to be changed as a result of such a conflict, it shall 

9 order the ERO to develop and file with the Commission a 

10 modified reliability standard under paragraph (4) or (5) 

11 of this subsection. 

12 ‘‘(e) ENFORCEMENT.—(1) The ERO may impose, sub13 ject to paragraph (2), a penalty on a user or owner or oper14 ator of the bulk-power system for a violation of a reliability 

15 standard approved by the Commission under subsection (d) 

16 if the ERO, after notice and an opportunity for a hearing—

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

18 violated a reliability standard approved by the Com19 mission under subsection (d); and 

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

21 with the Commission. 

22 ‘‘(2) A penalty imposed under paragraph (1) may take 

23 effect not earlier than the 31st day after the electric reli24 ability organization files with the Commission notice of the 

25 penalty and the record of proceedings. Such penalty shall
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1 be subject to review by the Commission, on its own motion 

2 or upon application by the user, owner or operator that 

3 is the subject of the penalty filed within 30 days after the 

4 date such notice is filed with the Commission. Application 

5 to the Commission for review, or the initiation of review 

6 by the Commission on its own motion, shall not operate 

7 as a stay of such penalty unless the Commission otherwise 

8 orders upon its own motion or upon application by the 

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

10 In any proceeding to review a penalty imposed under para11 graph (1), the Commission, after notice and opportunity 

12 for hearing (which hearing may consist solely of the record 

13 before the electric reliability organization and opportunity 

14 for the presentation of supporting reasons to affirm, modify, 

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

16 reinstate, or modify the penalty, and, if appropriate, re17 mand to the electric reliability organization for further pro18 ceedings. The Commission shall implement expedited proce19 dures for such hearings. 

20 ‘‘(3) On its own motion or upon complaint, the Com21 mission may order compliance with a reliability standard 

22 and may impose a penalty against a user or owner or oper23 ator of the bulk-power system, if the Commission finds, after 

24 notice and opportunity for a hearing, that the user or owner 

25 or operator of the bulk-power system has engaged or is about 
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1 to engage in any acts or practices that constitute or will 

2 constitute a violation of a reliability standard. 

3 ‘‘(4) The Commission shall establish regulations au4 thorizing the ERO to enter into an agreement to delegate 

5 authority to a regional entity for the purpose of proposing 

6 reliability standards to the ERO and enforcing reliability 

7 standards under paragraph (1) if—

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

9 ‘‘(i) an independent board; 

10 ‘‘(ii) a balanced stakeholder board; or 

11 ‘‘(iii) a combination independent and bal12 anced stakeholder board. 

13 ‘‘(B) the regional entity otherwise satisfies the 

14 provisions of subsection (c)(1) and (2); and 

15 ‘‘(C) the agreement promotes effective and effi16 cient administration of bulk-power system reliability. 

17 The Commission may modify such delegation. The ERO 

18 and the Commission shall rebuttably presume that a pro19 posal for delegation to a regional entity organized on an 

20 Interconnection-wide basis promotes effective and efficient 

21 administration of bulk-power system reliability and should 

22 be approved. Such regulation may provide that the Com23 mission may assign the ERO’s authority to enforce reli24 ability standards under paragraph (1) directly to a re-
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1 gional entity consistent with the requirements of this para2 graph. 

3 ‘‘(5) The Commission may take such action as is nec4 essary or appropriate against the ERO or a regional entity 

5 to ensure compliance with a reliability standard or any 

6 Commission order affecting the ERO or a regional entity. 

7 ‘‘(6) Any penalty imposed under this section shall bear 

8 a reasonable relation to the seriousness of the violation and 

9 shall take into consideration the efforts of such user, owner, 

10 or operator to remedy the violation in a timely manner. 

11 ‘‘(f) CHANGES IN ELECTRICITY RELIABILITY ORGANI12 ZATION RULES.—The Electric Reliability Organization 

13 shall file with the Commission for approval any proposed 

14 rule or proposed rule change, accompanied by an expla15 nation of its basis and purpose. The Commission, upon its 

16 own motion or complaint, may propose a change to the 

17 rules of the Electric Reliability Organization. A proposed 

18 rule or proposed rule change shall take effect upon a finding 

19 by the Commission, after notice and opportunity for com20 ment, that the change is just, reasonable, not unduly dis21 criminatory or preferential, is in the public interest, and 

22 satisfies the requirements of subsection (c). 

23 ‘‘(g) RELIABILITY REPORTS.—The Electric Reliability 

24 Organization shall conduct periodic assessments of the reli-
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1 ability and adequacy of the bulk-power system in North 

2 America. 

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

4 President is urged to negotiate international agreements 

5 with the governments of Canada and Mexico to provide for 

6 effective compliance with reliability standards and the effec7 tiveness of the Electric Reliability Organization in the 

8 United States and Canada or Mexico. 

9 ‘‘(i) SAVINGS PROVISIONS.—(1) The Electric Reli10 ability Organization shall have authority to develop and 

11 enforce compliance with reliability standards for only the 

12 bulk-power system. 

13 ‘‘(2) This section does not authorize the Electric Reli14 ability Organization or the Commission to order the con15 struction of additional generation or transmission capacity 

16 or to set and enforce compliance with standards for ade17 quacy or safety of electric facilities or services. 

18 ‘‘(3) Nothing in this section shall be construed to pre19 empt any authority of any State to take action to ensure 

20 the safety, adequacy, and reliability of electric service with21 in that State, as long as such action is not inconsistent 

22 with any reliability standard, except that the State of New 

23 York may establish rules that result in greater reliability 

24 within that State, as long as such action does not result 
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1 in lesser reliability outside the State than that provided by 

2 the reliability standards. 

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

4 Reliability Organization or other affected party, and after 

5 notice and opportunity for comment, the Commission shall 

6 issue a final order determining whether a State action is 

7 inconsistent with a reliability standard, taking into consid8 eration any recommendation of the Electric Reliability Or9 ganization. 

10 ‘‘(5) The Commission, after consultation with the Elec11 tric Reliability Organization and the State taking action, 

12 may stay the effectiveness of any State action, pending the 

13 Commission’s issuance of a final order. 

14 ‘‘(j) REGIONAL ADVISORY BODIES.—The Commission 

15 shall establish a regional advisory body on the petition of 

16 at least two-thirds of the States within a region that have 

17 more than one-half of their electric load served within the 

18 region. A regional advisory body shall be composed or of 

19 one member from each participating State in the region, 

20 appointed by the Governor of each State, and may include 

21 representatives of agencies, States, and provinces outside the 

22 United States. A regional advisory body may provide ad23 vice to the Electric Reliability Organization, a regional en24 tity, or the Commission regarding the governance of an ex25 isting or proposed regional entity within the same region,
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1 whether a standard proposed to apply within the region is 

2 just, reasonable, not unduly discriminatory or preferential, 

3 and in the public interest, whether fees proposed to be as4 sessed within the region are just, reasonable, not unduly 

5 discriminatory or preferential, and in the public interest 

6 and any other responsibilities requested by the Commission. 

7 The Commission may give deference to the advice of any 

8 such regional advisory body if that body is organized on 

9 an Interconnection-wide basis. 

10 ‘‘(k) APPLICATION TO ALASKA AND HAWAII.—The pro11 visions of this section do not apply to Alaska or Hawaii.’’. 

12 Subtitle D—PUHCA Amendments 

13 SEC. 7041. SHORT TITLE. 

14 This subtitle may be cited as the ‘‘Public Utility Hold15 ing Company Act of 2003’’. 

16 SEC. 7042. DEFINITIONS. 

17 For purposes of this subtitle: 

18 (1) The term ‘‘affiliate’’ of a company means 

19 any company, 5 percent or more of the outstanding 

20 voting securities of which are owned, controlled, or 

21 held with power to vote, directly or indirectly, by 

22 such company. 

23 (2) The term ‘‘associate company’’ of a company 

24 means any company in the same holding company 

25 system with such company. 
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1 (3) The term ‘‘Commission’’ means the Federal 

2 Energy Regulatory Commission. 

3 (4) The term ‘‘company’’ means a corporation, 

4 partnership, association, joint stock company, busi5 ness trust, or any organized group of persons, whether 

6 incorporated or not, or a receiver, trustee, or other 

7 liquidating agent of any of the foregoing. 

8 (5) The term ‘‘electric utility company’’ means 

9 any company that owns or operates facilities used for 

10 the generation, transmission, or distribution of elec11 tric energy for sale. 

12 (6) The terms ‘‘exempt wholesale generator’’ and 

13 ‘‘foreign utility company’’ have the same meanings as 

14 in sections 32 and 33, respectively, of the Public Util15 ity Holding Company Act of 1935 (15 U.S.C. 79z–5a, 

16 79z–5b), as those sections existed on the day before the 

17 effective date of this subtitle. 

18 (7) The term ‘‘gas utility company’’ means any 

19 company that owns or operates facilities used for dis20 tribution at retail (other than the distribution only in 

21 enclosed portable containers or distribution to tenants 

22 or employees of the company operating such facilities 

23 for their own use and not for resale) of natural or 

24 manufactured gas for heat, light, or power. 

25 (8) The term ‘‘holding company’’ means— 
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1 (A) any company that directly or indirectly 

2 owns, controls, or holds, with power to vote, 10 

3 percent or more of the outstanding voting securi4 ties of a public utility company or of a holding 

5 company of any public utility company; and 

6 (B) any person, determined by the Commis7 sion, after notice and opportunity for hearing, to 

8 exercise directly or indirectly (either alone or 

9 pursuant to an arrangement or understanding 

10 with one or more persons) such a controlling in11 fluence over the management or policies of any 

12 public utility company or holding company as to 

13 make it necessary or appropriate for the rate 

14 protection of utility customers with respect to 

15 rates that such person be subject to the obliga16 tions, duties, and liabilities imposed by this sub17 title upon holding companies. 

18 (9) The term ‘‘holding company system’’ means 

19 a holding company, together with its subsidiary com20 panies. 

21 (10) The term ‘‘jurisdictional rates’’ means rates 

22 established by the Commission for the transmission of 

23 electric energy in interstate commerce, the sale of elec24 tric energy at wholesale in interstate commerce, the 

25 transportation of natural gas in interstate commerce, 
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1 and the sale in interstate commerce of natural gas for 

2 resale for ultimate public consumption for domestic, 

3 commercial, industrial, or any other use. 

4 (11) The term ‘‘natural gas company’’ means a 

5 person engaged in the transportation of natural gas 

6 in interstate commerce or the sale of such gas in 

7 interstate commerce for resale. 

8 (12) The term ‘‘person’’ means an individual or 

9 company. 

10 (13) The term ‘‘public utility’’ means any person 

11 who owns or operates facilities used for transmission 

12 of electric energy in interstate commerce or sales of 

13 electric energy at wholesale in interstate commerce. 

14 (14) The term ‘‘public utility company’’ means 

15 an electric utility company or a gas utility company. 

16 (15) The term ‘‘State commission’’ means any 

17 commission, board, agency, or officer, by whatever 

18 name designated, of a State, municipality, or other 

19 political subdivision of a State that, under the laws 

20 of such State, has jurisdiction to regulate public util21 ity companies. 

22 (16) The term ‘‘subsidiary company’’ of a hold23 ing company means— 

24 (A) any company, 10 percent or more of the 

25 outstanding voting securities of which are di-
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1 rectly or indirectly owned, controlled, or held 

2 with power to vote, by such holding company; 

3 and 

4 (B) any person, the management or policies 

5 of which the Commission, after notice and oppor6 tunity for hearing, determines to be subject to a 

7 controlling influence, directly or indirectly, by 

8 such holding company (either alone or pursuant 

9 to an arrangement or understanding with one or 

10 more other persons) so as to make it necessary 

11 for the rate protection of utility customers with 

12 respect to rates that such person be subject to the 

13 obligations, duties, and liabilities imposed by 

14 this subtitle upon subsidiary companies of hold15 ing companies. 

16 (17) The term ‘‘voting security’’ means any secu17 rity presently entitling the owner or holder thereof to 

18 vote in the direction or management of the affairs of 

19 a company. 

20 SEC. 7043. REPEAL OF THE PUBLIC UTILITY HOLDING COM21 PANY ACT OF 1935. 

22 The Public Utility Holding Company Act of 1935 (15 

23 U.S.C. 79 et seq.) is repealed.
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1 SEC. 7044. FEDERAL ACCESS TO BOOKS AND RECORDS. 

2 (a) IN GENERAL.—Each holding company and each 

3 associate company thereof shall maintain, and shall make 

4 available to the Commission, such books, accounts, memo5 randa, and other records as the Commission deems to be 

6 relevant to costs incurred by a public utility or natural gas 

7 company that is an associate company of such holding com8 pany and necessary or appropriate for the protection of 

9 utility customers with respect to jurisdictional rates. 

10 (b) AFFILIATE COMPANIES.—Each affiliate of a hold11 ing company or of any subsidiary company of a holding 

12 company shall maintain, and shall make available to the 

13 Commission, such books, accounts, memoranda, and other 

14 records with respect to any transaction with another affil15 iate, as the Commission deems to be relevant to costs in16 curred by a public utility or natural gas company that is 

17 an associate company of such holding company and nec18 essary or appropriate for the protection of utility customers 

19 with respect to jurisdictional rates. 

20 (c) HOLDING COMPANY SYSTEMS.—The Commission 

21 may examine the books, accounts, memoranda, and other 

22 records of any company in a holding company system, or 

23 any affiliate thereof, as the Commission deems to be rel24 evant to costs incurred by a public utility or natural gas 

25 company within such holding company system and nec-
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1 essary or appropriate for the protection of utility customers 

2 with respect to jurisdictional rates. 

3 (d) CONFIDENTIALITY.—No member, officer, or em4 ployee of the Commission shall divulge any fact or informa5 tion that may come to his or her knowledge during the 

6 course of examination of books, accounts, memoranda, or 

7 other records as provided in this section, except as may be 

8 directed by the Commission or by a court of competent ju9 risdiction. 

10 SEC. 7045. STATE ACCESS TO BOOKS AND RECORDS. 

11 (a) In GENERAL.—Upon the written request of a State 

12 commission having jurisdiction to regulate a public utility 

13 company in a holding company system, the holding com14 pany or any associate company or affiliate thereof, other 

15 than such public utility company, wherever located, shall 

16 produce for inspection books, accounts, memoranda, and 

17 other records that—

18 (1) have been identified in reasonable detail by 

19 the State commission; 

20 (2) the State commission deems are relevant to 

21 costs incurred by such public utility company; and 

22 (3) are necessary for the effective discharge of the 

23 responsibilities of the State commission with respect 

24 to such proceeding. 
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1 (b) LIMITATION.—Subsection (a) does not apply to 

2 any person that is a holding company solely by reason of 

3 ownership of one or more qualifying facilities under the 

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

5 2601 et seq.). 

6 (c) CONFIDENTIALITY OF INFORMATION.—The produc7 tion of books, accounts, memoranda, and other records 

8 under subsection (a) shall be subject to such terms and con9 ditions as may be necessary and appropriate to safeguard 

10 against unwarranted disclosure to the public of any trade 

11 secrets or sensitive commercial information. 

12 (d) EFFECT ON STATE LAW.—Nothing in this section 

13 shall preempt applicable State law concerning the provision 

14 of books, accounts, memoranda, and other records, or in any 

15 way limit the rights of any State to obtain books, accounts, 

16 memoranda, and other records under any other Federal 

17 law, contract, or otherwise. 

18 (e) COURT JURISDICTION.—Any United States district 

19 court located in the State in which the State commission 

20 referred to in subsection (a) is located shall have jurisdic21 tion to enforce compliance with this section. 

22 SEC. 7046. EXEMPTION AUTHORITY. 

23 (a) RULEMAKING.—Not later than 90 days after the 

24 effective date of this subtitle, the Commission shall promul25 gate a final rule to exempt from the requirements of section 
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1 7044 (relating to Federal access to books and records) any 

2 person that is a holding company, solely with respect to 

3 one or more—

4 (1) qualifying facilities under the Public Utility 

5 Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 

6 seq.); 

7 (2) exempt wholesale generators; or 

8 (3) foreign utility companies. 

9 (b) OTHER AUTHORITY.—The Commission shall ex10 empt a person or transaction from the requirements of sec11 tion 7044 (relating to Federal access to books and records) 

12 if, upon application or upon the motion of the Commis13 sion— 

14 (1) the Commission finds that the books, ac15 counts, memoranda, and other records of any person 

16 are not relevant to the jurisdictional rates of a public 

17 utility or natural gas company; or 

18 (2) the Commission finds that any class of trans19 actions is not relevant to the jurisdictional rates of a 

20 public utility or natural gas company. 

21 SEC. 7047. AFFILIATE TRANSACTIONS. 

22 (a) COMMISSION AUTHORITY UNAFFECTED.—Nothing 

23 in this subtitle shall limit the authority of the Commission 

24 under the Federal Power Act (16 U.S.C. 791a et seq.) to 

25 require that jurisdictional rates are just and reasonable, in-
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1 cluding the ability to deny or approve the pass through of 

2 costs, the prevention of cross-subsidization, and the promul3 gation of such rules and regulations as are necessary or ap4 propriate for the protection of utility consumers. 

5 (b) RECOVERY OF COSTS.—Nothing in this subtitle 

6 shall preclude the Commission or a State commission from 

7 exercising its jurisdiction under otherwise applicable law 

8 to determine whether a public utility company, public util9 ity, or natural gas company may recover in rates any costs 

10 of an activity performed by an associate company, or any 

11 costs of goods or services acquired by such public utility 

12 company from an associate company. 

13 SEC. 7048. APPLICABILITY. 

14 Except as otherwise specifically provided in this sub15 title, no provision of this subtitle shall apply to, or be 

16 deemed to include— 

17 (1) the United States; 

18 (2) a State or any political subdivision of a 

19 State; 

20 (3) any foreign governmental authority not oper21 ating in the United States; 

22 (4) any agency, authority, or instrumentality of 

23 any entity referred to in paragraph (1), (2), or (3); 

24 or
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1 (5) any officer, agent, or employee of any entity 

2 referred to in paragraph (1), (2), or (3) acting as 

3 such in the course of his or her official duty. 

4 SEC. 7049. EFFECT ON OTHER REGULATIONS. 

5 Nothing in this subtitle precludes the Commission or 

6 a State commission from exercising its jurisdiction under 

7 otherwise applicable law to protect utility customers. 

8 SEC. 7050. ENFORCEMENT. 

9 The Commission shall have the same powers as set 

10 forth in sections 306 through 317 of the Federal Power Act 

11 (16 U.S.C. 825e–825p) to enforce the provisions of this sub12 title. 

13 SEC. 7051. SAVINGS PROVISIONS. 

14 (a) IN GENERAL.—Nothing in this subtitle prohibits 

15 a person from engaging in or continuing to engage in ac16 tivities or transactions in which it is legally engaged or 

17 authorized to engage on the date of enactment of this Act, 

18 so long as that person continues to comply with the terms 

19 of any such authorization, whether by rule or by order. 

20 (b) EFFECT ON OTHER COMMISSION AUTHORITY.—

21 Nothing in this subtitle limits the authority of the Commis22 sion under the Federal Power Act (16 U.S.C. 791a et seq.) 

23 (including section 301 of that Act) or the Natural Gas Act 

24 (15 U.S.C. 717 et seq.) (including section 8 of that Act). 
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1 SEC. 7052. IMPLEMENTATION. 

2 Not later than 12 months after the date of enactment 

3 of this subtitle, the Commission shall— 

4 (1) promulgate such regulations as may be nec5 essary or appropriate to implement this subtitle 

6 (other than section 7045, relating to State access to 

7 books and records); and 

8 (2) submit to the Congress detailed recommenda9 tions on technical and conforming amendments to 

10 Federal law necessary to carry out this subtitle and 

11 the amendments made by this subtitle. 

12 SEC. 7053. TRANSFER OF RESOURCES. 

13 All books and records that relate primarily to the func14 tions transferred to the Commission under this subtitle shall 

15 be transferred from the Securities and Exchange Commis16 sion to the Commission. 

17 SEC. 7054. EFFECTIVE DATE. 

18 This subtitle shall take effect 12 months after the date 

19 of enactment of this subtitle. 

20 SEC. 7055. AUTHORIZATION OF APPROPRIATIONS. 

21 There are authorized to be appropriated such funds as 

22 may be necessary to carry out this subtitle. 

23 SEC. 7056. CONFORMING AMENDMENTS TO THE FEDERAL 

24 POWER ACT. 

25 (a) CONFLICT OF JURISDICTION.—Section 318 of the 

26 Federal Power Act (16 U.S.C. 825q) is repealed. 
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1 (b) DEFINITIONS.—(1) Section 201(g)(5) of the Fed2 eral Power Act (16 U.S.C. 824(g)(5)) is amended by strik3 ing ‘‘1935’’ and inserting ‘‘2003’’. 

4 (2) Section 214 of the Federal Power Act (16 U.S.C. 

5 824m) is amended by striking ‘‘1935’’ and inserting 

6 ‘‘2003’’. 

7 Subtitle E—PURPA Amendments 

8 SEC. 7061. REAL-TIME PRICING AND TIME-OF-USE METER9 ING STANDARDS. 

10 (a) ADOPTION OF STANDARDS.—Section 111(d) of the 

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

12 2621(d)) is amended by adding at the end the following: 

13 ‘‘(11) REAL-TIME PRICING.—(A) Each electric 

14 utility shall, at the request of an electric consumer, 

15 provide electric service under a real-time rate sched16 ule, under which the rate charged by the electric util17 ity varies by the hour (or smaller time interval) ac18 cording to changes in the electric utility’s wholesale 

19 power cost. The real-time pricing service shall enable 

20 the electric consumer to manage energy use and cost 

21 through real-time metering and communications tech22 nology. 

23 ‘‘(B) For purposes of implementing this para24 graph, any reference contained in this section to the 

25 date of enactment of the Public Utility Regulatory 
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1 Policies Act of 1978 shall be deemed to be a reference 

2 to the date of enactment of this paragraph. 

3 ‘‘(C) Notwithstanding subsections (b) and (c) of 

4 section 112, each State regulatory authority shall con5 sider and make a determination concerning whether 

6 it is appropriate to implement the standard set out 

7 in subparagraph (A) not later than 1 year after the 

8 date of enactment of this paragraph. 

9 ‘‘(12) TIME-OF-USE METERING.—(A) Each elec10 tric utility shall, at the request of an electric con11 sumer, provide electric service under a time-of-use 

12 rate schedule which enables the electric consumer to 

13 manage energy use and cost through time-of-use me14 tering and technology. 

15 ‘‘(B) For purposes of implementing this para16 graph, any reference contained in this section to the 

17 date of enactment of the Public Utility Regulatory 

18 Policies Act of 1978 shall be deemed to be a reference 

19 to the date of enactment of this paragraph. 

20 ‘‘(C) Notwithstanding subsections (b) and (c) of 

21 section 112, each State regulatory authority shall con22 sider and make a determination concerning whether 

23 it is appropriate to implement the standards set out 

24 in subparagraph (A) not later than 1 year after the 

25 date of enactment of this paragraph.’’.
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1 (b) SPECIAL RULES.—Section 115 of the Public Util2 ity Regulatory Policies Act of 1978 (16 U.S.C. 2625) is 

3 amended by adding at the end the following: 

4 ‘‘(i) REAL-TIME PRICING.—In a State that permits 

5 third-party marketers to sell electric energy to retail electric 

6 consumers, the electric consumer shall be entitled to receive 

7 the same real-time metering and communication service as 

8 a direct retail electric consumer of the electric utility. 

9 ‘‘(j) TIME-OF-USE METERING.—In a State that per10 mits third-party marketers to sell electric energy to retail 

11 electric consumers, the electric consumer shall be entitled 

12 to receive the same time-of-use metering and communica13 tion service as a direct retail electric consumer of the elec14 tric utility.’’. 

15 SEC. 7062. COGENERATION AND SMALL POWER PRODUC16 TION PURCHASE AND SALE REQUIREMENTS. 

17 (a) TERMINATION OF MANDATORY PURCHASE AND

18 SALE REQUIREMENTS.—Section 210 of the Public Utility 

19 Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 

20 amended by adding at the end the following: 

21 ‘‘(m) TERMINATION OF MANDATORY PURCHASE AND

22 SALE REQUIREMENTS.—

23 ‘‘(1) OBLIGATION TO PURCHASE.—After the date 

24 of enactment of this subsection, no electric utility 

25 shall be required to enter into a new contract or obli-
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1 gation to purchase electric energy from a qualifying 

2 cogeneration facility or a qualifying small power pro3 duction facility under this section if the Commission 

4 finds that— 

5 ‘‘(A) the qualifying cogeneration facility or 

6 qualifying small power production facility has 

7 access to 

8 ‘‘(i) independently administered, auc9 tion-based day ahead and real time whole10 sale markets for the sale of electric energy, 

11 and 

12 ‘‘(ii) long-term wholesale markets for 

13 the sale of capacity and electric energy; 

14 ‘‘(B) the qualifying cogeneration facility or 

15 qualifying small power production facility has 

16 access to a competitive wholesale market for the 

17 sale of electric energy that provides such quali18 fying cogeneration facility or qualifying small 

19 power production facility with opportunities to 

20 sell electric energy that, at a minimum, are com21 parable to the opportunities provided by the 

22 markets, or some minimum combination thereof, 

23 described in subparagraph (A); or 

24 ‘‘(C) the qualifying cogeneration facility 

25 does not meet criteria established by the Commis-
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1 sion pursuant to the rulemaking set forth in sub2 paragraph (n) and has not filed with the Com3 mission a notice of self-certification or an appli4 cation for Commission certification under 18 

5 C.F.R. 292.207 prior to the date of enactment of 

6 this subsection. 

7 ‘‘(2) COMMISSION REVIEW.—(A) Any electric 

8 utility may file an application with the Commission 

9 for relief from the mandatory purchase obligation 

10 pursuant to this subsection on a utility-wide basis. 

11 Such application shall set forth the reasons why such 

12 relief is appropriate and describe how the conditions 

13 set forth in subparagraphs (A) and (B) of paragraph 

14 (1) of this subsection have been met. 

15 ‘‘(B) After notice, including sufficient notice to 

16 potentially affected qualifying facilities, and an op17 portunity for comment, and within 90 days of the fil18 ing of an application under subparagraph (A), the 

19 Commission shall make a final determination as to 

20 whether the conditions set forth in subparagraphs (A) 

21 and (B) of paragraph (1) have been met. The Com22 mission shall not be authorized to issue a tolling 

23 order regarding such application or otherwise delay a 

24 final decision regarding such application. 
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1 ‘‘(3) REINSTATEMENT OF OBLIGATION TO PUR2 CHASE.—(A) At any time after the Commission 

3 makes a finding under paragraph (2) relieving an 

4 electric utility of its obligation to purchase electric 

5 energy, a qualifying cogeneration facility or a quali6 fying small power production facility may apply to 

7 the Commission for an order reinstating the electric 

8 utility’s obligation to purchase electric energy under 

9 this section. Such application shall set forth the rea10 sons why such relief is no longer appropriate and de11 scribe how the tests set forth in subparagraphs (A) 

12 and (B) of paragraph (1) of this subsection are no 

13 longer met. 

14 ‘‘(B) After notice, including sufficient notice to 

15 potentially affected utilities, and opportunity for com16 ment, and within 90 days of the filing of an applica17 tion under subparagraph (A), the Commission shall 

18 issue an order reinstating the electric utility’s obliga19 tion to purchase electric energy under this section if 

20 the Commission finds that the condition in paragraph 

21 (1), which relieved the obligation to purchase, is no 

22 longer met. The Commission shall not be authorized 

23 to issue a tolling order regarding such application or 

24 otherwise delay a final decision regarding such appli25 cation. 
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1 ‘‘(4) OBLIGATION TO SELL.—After the date of en2 actment of this subsection, no electric utility shall be 

3 required to enter into a new contract or obligation to 

4 sell electric energy to a qualifying cogeneration facil5 ity or a qualifying small power production facility 

6 if—

7 ‘‘(A) competing retail electric suppliers are 

8 willing and able to provide electric energy to the 

9 qualifying cogeneration facility or qualifying 

10 small power production facility, and 

11 ‘‘(B) the electric utility is not required by 

12 State law to sell electric energy in its service ter13 ritory. 

14 ‘‘(5) NO EFFECT ON EXISTING RIGHTS AND REM15 EDIES.—Nothing in this subsection affects the rights 

16 or remedies of any party under any contract or obli17 gation, in effect or pending approval before the ap18 propriate State regulatory authority or nonregulated 

19 electric utility on the date of enactment of this sub20 section, to purchase electric energy or capacity from 

21 or to sell electric energy or capacity to a facility 

22 under this Act (including the right to recover costs of 

23 purchasing electric energy or capacity). 

24 ‘‘(6) RECOVERY OF COSTS.—
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1 ‘‘(A) REGULATION.—To ensure recovery by 

2 an electric utility that purchases electric energy 

3 or capacity from a qualifying facility pursuant 

4 to any legally enforceable obligation entered into 

5 or imposed under this section of all prudently 

6 incurred costs associated with the purchases, the 

7 Commission shall issue and enforce such regula8 tions as may be required to ensure that the elec9 tric utility shall recover the prudently incurred 

10 costs associated with such purchases. 

11 ‘‘(B) ENFORCEMENT.—A regulation under 

12 subparagraph (A) shall be enforceable in accord13 ance with the provisions of law applicable to en14 forcement of regulations under the Federal Power 

15 Act (16 U.S.C. 791a et seq.). 

16 ‘‘(n) RULEMAKING FOR NEW FACILITIES.—

17 ‘‘(1) IN GENERAL.—Not later than 180 days 

18 after the date of enactment of this subsection, the 

19 Commission shall issue a rule revising the criteria for 

20 qualifying cogeneration facilities in 18 C.F.R. 

21 292.205. In particular, the Commission shall evaluate 

22 the rules regarding qualifying facility criteria and re23 vise such rules, as necessary, to ensure—
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1 ‘‘(A) that the thermal energy output of a 

2 new qualifying cogeneration facility is used in a 

3 productive and beneficial manner; 

4 ‘‘(B) the electrical and thermal output of 

5 the cogeneration facility is used predominantly 

6 for commercial or industrial processes and not 

7 intended predominantly for sale to an electric 

8 utility; and 

9 ‘‘(C) continuing progress in the development 

10 of efficient electric energy generating technology. 

11 ‘‘(2) APPLICABILITY.—Any revisions made to op12 erating and efficiency standards shall be applicable 

13 only to a cogeneration facility that—

14 ‘‘(A) was not a qualifying cogeneration fa15 cility, or 

16 ‘‘(B) had not filed with the Commission a 

17 notice of self-certification or an application for 

18 Commission certification under 18 C.F.R. 

19 292.207

20 prior to the date of enactment of this subsection. 

21 ‘‘(3) DEFINITION.—For purposes of this sub22 section, the term ‘commercial processes’ includes uses 

23 of thermal and electric energy for educational and 

24 healthcare facilities. 
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1 ‘‘(o) RULES FOR EXISTING FACILITIES.—Notwith2 standing rule revisions under subsection (n), the Commis3 sion’s rules in effect prior to the effective date of any revised 

4 rules prescribed under subsection (n) shall continue to 

5 apply to any cogeneration facility or small power produc6 tion facility that—

7 ‘‘(1) was a qualifying cogeneration facility or a 

8 qualifying small power production facility, or 

9 ‘‘(2) had filed with the Commission a notice of 

10 self-certification or an application for Commission 

11 certification under 18 C.F.R. 292.207

12 prior to the date of enactment of subsections (m) and (n).’’. 

13 (b) ELIMINATION OF OWNERSHIP LIMITATIONS.—(1) 

14 Section 3(17)(C) of the Federal Power Act (16 U.S.C. 

15 796(17)(C)) is amended to read as follows: 

16 ‘‘(C) ‘qualifying small power production facility’ 

17 means a small power production facility that the Commis18 sion determines, by rule, meets such requirements (includ19 ing requirements respecting minimum size, fuel use, and 

20 fuel efficiency) as the Commission may, by rule, prescribe.’’. 

21 (2) Section 3(18)(B) of the Federal Power Act (16 

22 U.S.C. 796(18)(B)) is amended to read as follows: 

23 ‘‘(B) ‘qualifying cogeneration facility’ means a cogen24 eration facility that the Commission determines, by rule, 

25 meets such requirements (including requirements respecting 
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1 minimum size, fuel use, and fuel efficiency) as the Commis2 sion may, by rule, prescribe.’’. 

3 SEC. 7063. SMART METERING. 

4 (a) IN GENERAL.—Section 111(d) of the Public Utili5 ties Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 

6 is amended by adding at the end the following: 

7 ‘‘(13) TIME-BASED METERING AND COMMUNICA8 TIONS.—(A) Not later than eighteen (18) months after 

9 the date of enactment of this paragraph, each electric 

10 utility shall offer each of its customer classes, and 

11 provide individual customers upon customer request, 

12 a time-based rate schedule under which the rate 

13 charged by the electric utility varies during different 

14 time periods and reflects the variance in the costs of 

15 generating and purchasing electricity at the wholesale 

16 level. The time-based rate schedule shall enable the 

17 electric consumer to manage energy use and cost 

18 through advanced metering and communications tech19 nology. 

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

21 may be offered under the schedule referred to in sub22 paragraph (A) include, among others, each of the fol23 lowing: 

24 ‘‘(i) Time-Of-Use pricing whereby elec25 tricity prices are set for a specific time period on 
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1 an advance or forward basis, typically not 

2 changing more often than twice a year. Prices 

3 paid for energy consumed during these periods 

4 shall be pre-established and known to consumers 

5 in advance of such consumption, allowing them 

6 to vary their demand and usage in response to 

7 such prices and manage their energy costs by 

8 shifting usage to a lower cost period or reducing 

9 their consumption overall. 

10 ‘‘(ii) Critical Peak Pricing whereby time-of11 use prices are in effect except for certain peak 

12 days, when prices may reflect the costs of gener13 ating and purchasing electricity at the wholesale 

14 level and when consumers may receive additional 

15 discounts for reducing peak period energy con16 sumption. 

17 ‘‘(iii) Real-Time pricing whereby electricity 

18 prices are set for a specific time period on an 

19 advanced or forward basis and may change as 

20 often as hourly. 

21 ‘‘(C) Each electric utility subject to subpara22 graph (A) shall provide each customer requesting a 

23 time-based rate with a time-based meter capable of 

24 enabling the utility and customer to offer and receive 

25 such rate, respectively.
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1 ‘‘(D) For purposes of implementing this para2 graph, any reference contained in this section to the 

3 date of enactment of the Public Utility Regulatory 

4 Policies Act of 1978 shall be deemed to be a reference 

5 to the date of enactment of this paragraph. 

6 ‘‘(E) In a State that permits third-party mar7 keters to sell electric energy to retail electric con8 sumers, such consumers shall be entitled to receive 

9 that same time-based metering and communications 

10 device and service as a retail electric consumer of the 

11 electric utility. 

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

13 section 112, each State regulatory authority shall, not 

14 later than twelve (12) months after enactment of this 

15 paragraph conduct an investigation in accordance 

16 with section 115(i) and issue a decision whether it is 

17 appropriate to implement the standards set out in 

18 subparagraphs (A) and (C).’’. 

19 (b) STATE INVESTIGATION OF DEMAND RESPONSE AND

20 TIME-BASED METERING.—

21 Section 115 of the Public Utilities Regulatory Policies 

22 Act of 1978 (16 U.S.C. 2625) is amended by adding the 

23 at the end the following: 

24 ‘‘(k) TIME-BASED METERING AND COMMUNICA25 TIONS.—Each State regulatory authority shall, not later 
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1 than twelve (12) months after enactment of this subsection, 

2 conduct an investigation and issue a decision whether or 

3 not it is appropriate for electric utilities to provide and 

4 install time-based meters and communications devices for 

5 each of their customers which enable such customers to par6 ticipate in time-based pricing rate schedules and other de7 mand response programs.’’. 

8 (c) FEDERAL ASSISTANCE ON DEMAND RESPONSE.—

9 Section 132(a) of the Public Utility Regulatory Polices Act 

10 of 1978 (16 U.S.C. 2642(a)) is amended by striking ‘‘and’’ 

11 at the end of paragraph (3), striking the period at the end 

12 of paragraph (4) and inserting ‘‘; and’’, and by adding the 

13 following at the end thereof: 

14 ‘‘(5) technologies, techniques and rate-making 

15 methods related to advanced metering and commu16 nications and the use of these technologies, techniques 

17 and methods in demand response programs.’’. 

18 (d) FEDERAL GUIDANCE.—Section 132 of the Public 

19 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2643) 

20 is amended by adding the following at the end thereof: 

21 ‘‘(d) DEMAND RESPONSE.—The Secretary shall be re22 sponsible for each of the following: 

23 ‘‘(1) Educating consumers on the availability, 

24 advantages and benefits of advanced metering and 
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1 communications technologies including the funding of 

2 demonstration or pilot projects. 

3 ‘‘(2) Working with States, utilities, other energy 

4 providers and advanced metering and communica5 tions experts to identify and address barriers to the 

6 adoption of demand response programs, and 

7 ‘‘(3) Within 6 months of enactment, provide the 

8 Congress with a report that identifies and quantifies 

9 the national benefits of demand response and provides 

10 policy recommendations as to how to achieve specific 

11 levels of such benefits by January 1, 2005.’’. 

12 (e) DEMAND RESPONSE AND REGIONAL COORDINA13 TION.—

14 (1) POLICY.—It is the policy of the United 

15 States to encourage States to coordinate, on a re16 gional basis, State energy policies to provide reliable 

17 and affordable demand response services to the public. 

18 (2) TECHNICAL ASSISTANCE.—The Secretary of 

19 Energy shall provide technical assistance to States 

20 and regional organizations formed by two or more 

21 States to assist them in—

22 (A) identifying the areas with the greatest 

23 demand response potential; 
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1 (B) identifying and resolving problems in 

2 transmission and distribution networks, includ3 ing through the use of demand response; and 

4 (C) developing plans and programs to use 

5 demand response to respond to peak demand or 

6 emergency needs. 

7 (3) REPORT.—The Federal Energy Regulatory 

8 Commission shall prepare and publish an annual re9 port, by appropriate region, that assesses demand re10 sponse resources, including those available from all 

11 consumer classes, and which identifies and reviews 

12 each of the following: 

13 (A) Saturation and penetration rate of ad14 vanced meters and communications technologies, 

15 devices and systems. 

16 (B) Existing demand response programs 

17 and time-based rate programs. 

18 (C) The annual resource contribution of de19 mand resources, including the prior year and 

20 following years. 

21 (D) The potential for demand response as a 

22 quantifiable, reliable resource for regional plan23 ning purposes. 

24 (E) Steps taken to ensure that, in regional 

25 transmission planning and operations, that de-
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1 mand resources are provided equitable treatment 

2 as a quantifiable, reliable resource relative to the 

3 resource obligations of any load-serving entity, 

4 transmission provider or transmitting party. 

5 (f) COST RECOVERY OF DEMAND RESPONSE DE6 VICES.—It is the policy of the United States that time-based 

7 pricing and other forms of demand response, whereby elec8 tricity customers are provided with electricity price signals 

9 and the ability to benefit by responding to them, shall be 

10 encouraged and the deployment of such technology and de11 vices that enable electricity customers to participate in such 

12 pricing and demand response systems shall be facilitated. 

13 It is further the policy of the United States that the benefits 

14 of such demand response that accrue to those not deploying 

15 such technology and devices, but who are part of the same 

16 regional electricity entity, shall be recognized. 

17 Subtitle F—Renewable Energy 

18 SEC. 7071. NET METERING. 

19 (a) ADOPTION OF STANDARD.—Section 111(d) of the 

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

21 2621(d)) is amended by adding at the end the following: 

22 ‘‘(14) NET METERING.—(A) Each electric utility 

23 shall make available upon request net metering serv24 ice to any electric consumer that the electric utility 

25 serves.
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1 ‘‘(B) For purposes of implementing this para2 graph, any reference contained in this section to the 

3 date of enactment of the Public Utility Regulatory 

4 Policies Act of 1978 shall be deemed to be a reference 

5 to the date of enactment of this paragraph. 

6 ‘‘(C) Notwithstanding subsections (b) and (c) of 

7 section 112, each State regulatory authority shall con8 sider and make a determination concerning whether 

9 it is appropriate to implement the standard set out 

10 in subparagraph (A) not later than 1 year after the 

11 date of enactment of this paragraph.’’. 

12 (b) SPECIAL RULES FOR NET METERING.—Section 

13 115 of the Public Utility Regulatory Policies Act of 1978 

14 (16 U.S.C. 2625) is amended by adding at the end the fol15 lowing: 

16 ‘‘(l) NET METERING.—In undertaking the consider17 ation and making the determination under section 111 with 

18 respect to the standard concerning net metering established 

19 by section 111(d)(14), the term ‘net metering service’ shall 

20 mean a service provided in accordance with the following 

21 standards: 

22 ‘‘(1) RATES AND CHARGES.—An electric util23 ity—

24 ‘‘(A) shall charge the owner or operator of 

25 an on-site generating facility rates and charges 
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1 that are identical to those that would be charged 

2 other electric consumers of the electric utility in 

3 the same rate class; and 

4 ‘‘(B) shall not charge the owner or operator 

5 of an on-site generating facility any additional 

6 standby, capacity, interconnection, or other rate 

7 or charge. 

8 ‘‘(2) MEASUREMENT.—An electric utility that 

9 sells electric energy to the owner or operator of an on10 site generating facility shall measure the quantity of 

11 electric energy produced by the on-site facility and the 

12 quantity of electric energy consumed by the owner or 

13 operator of an on-site generating facility during a 

14 billing period in accordance with normal metering 

15 practices. 

16 ‘‘(3) ELECTRIC ENERGY SUPPLIED EXCEEDING

17 ELECTRIC ENERGY GENERATED.—If the quantity of 

18 electric energy sold by the electric utility to an on-site 

19 generating facility exceeds the quantity of electric en20 ergy supplied by the on-site generating facility to the 

21 electric utility during the billing period, the electric 

22 utility may bill the owner or operator for the net 

23 quantity of electric energy sold, in accordance with 

24 normal metering practices. 
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1 ‘‘(4) ELECTRIC ENERGY GENERATED EXCEEDING

2 ELECTRIC ENERGY SUPPLIED.—If the quantity of elec3 tric energy supplied by the on-site generating facility 

4 to the electric utility exceeds the quantity of electric 

5 energy sold by the electric utility to the on-site gener6 ating facility during the billing period—

7 ‘‘(A) the electric utility may bill the owner 

8 or operator of the on-site generating facility for 

9 the appropriate charges for the billing period in 

10 accordance with paragraph (2); and 

11 ‘‘(B) the owner or operator of the on-site 

12 generating facility shall be credited for the excess 

13 kilowatt-hours generated during the billing pe14 riod, with the kilowatt-hour credit appearing on 

15 the bill for the following billing period. 

16 ‘‘(5) SAFETY AND PERFORMANCE STANDARDS.—

17 An eligible on-site generating facility and net meter18 ing system used by an electric consumer shall meet all 

19 applicable safety, performance, reliability, and inter20 connection standards established by the National 

21 Electrical Code, the Institute of Electrical and Elec22 tronics Engineers, and Underwriters Laboratories. 

23 ‘‘(6) ADDITIONAL CONTROL AND TESTING RE24 QUIREMENTS.—The Commission, after consultation 

25 with State regulatory authorities and nonregulated 
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1 electric utilities and after notice and opportunity for 

2 comment, may adopt, by rule, additional control and 

3 testing requirements for on-site generating facilities 

4 and net metering systems that the Commission deter5 mines are necessary to protect public safety and sys6 tem reliability. 

7 ‘‘(7) DEFINITIONS.—For purposes of this sub8 section: 

9 ‘‘(A) The term ‘eligible on-site generating 

10 facility’ means—

11 ‘‘(i) a facility on the site of a residen12 tial electric consumer with a maximum gen13 erating capacity of 10 kilowatts or less that 

14 is fueled by solar energy, wind energy, or 

15 fuel cells; or 

16 ‘‘(ii) a facility on the site of a commer17 cial electric consumer with a maximum 

18 generating capacity of 500 kilowatts or less 

19 that is fueled solely by a renewable energy 

20 resource, landfill gas, or a high efficiency 

21 system. 

22 ‘‘(B) The term ‘renewable energy resource’ 

23 means solar, wind, biomass, or geothermal en24 ergy.
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1 ‘‘(C) The term ‘high efficiency system’ 

2 means service fuel cells or combined heat and 

3 power. 

4 ‘‘(D) The term ‘net metering’ means service 

5 to an electric consumer under which electric en6 ergy generated by that electric consumer from an 

7 eligible on-site generating facility and delivered 

8 to the local distribution facilities may be used to 

9 offset electric energy provided by the electric util10 ity to the electric consumer during the applicable 

11 billing period.’’

12 SEC. 7072. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

13 (a) INCENTIVE PAYMENTS.—Section 1212(a) of the 

14 Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amended 

15 by striking ‘‘and which satisfies’’ and all that follows 

16 through ‘‘Secretary shall establish.’’ and inserting ‘‘. If there 

17 are insufficient appropriations to make full payments for 

18 electric production from all qualified renewable energy fa19 cilities in any given year, the Secretary shall assign 60 per20 cent of appropriated funds for that year to facilities that 

21 use solar, wind, geothermal, or closed-loop (dedicated energy 

22 crops) biomass technologies to generate electricity, and as23 sign the remaining 40 percent to other projects. The Sec24 retary may, after transmitting to the Congress an expla-
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1 nation of the reasons therefor, alter the percentage require2 ments of the preceding sentence.’’. 

3 (b) QUALIFIED RENEWABLE ENERGY FACILITY.—Sec4 tion 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 

5 13317(b)) is amended—

6 (1) by striking ‘‘a State or any political’’ and 

7 all that follows through ‘‘nonprofit electrical coopera8 tive’’ and inserting ‘‘a not-for-profit electric coopera9 tive, a public utility described in section 115 of the 

10 Internal Revenue Code of 1986, a State, Common11 wealth, territory, or possession of the United States or 

12 the District of Columbia, or a political subdivision 

13 thereof, or an Indian tribal government of subdivision 

14 thereof,’’; and 

15 (2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio16 mass,’’. 

17 (c) ELIGIBILITY WINDOW.—Section 1212(c) of the En18 ergy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended 

19 by striking ‘‘during the 10-fiscal year period beginning 

20 with the first full fiscal year occurring after the enactment 

21 of this section’’ and inserting ‘‘after October 1, 2003, and 

22 before October 1, 2013’’. 

23 (d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of the 

24 Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is 
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1 amended by inserting ‘‘landfill gas,’’ after ‘‘wind, bio2 mass,’’. 

3 (e) SUNSET.—Section 1212(f) of the Energy Policy Act 

4 of 1992 (42 U.S.C. 13317(f)) is amended by striking ‘‘the 

5 expiration of’’ and all that follows through ‘‘of this section’’ 

6 and inserting ‘‘September 30, 2023’’. 

7 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

8 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 

9 13317(g)) is amended to read as follows: 

10 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

11 ‘‘(1) IN GENERAL.—Subject to paragraph (2), 

12 there are authorized to be appropriated such sums as 

13 may be necessary to carry out this section for fiscal 

14 years 2003 through 2023. 

15 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made 

16 available under paragraph (1) shall remain available 

17 until expended.’’. 

18 SEC. 7073. RENEWABLE ENERGY ON FEDERAL LANDS. 

19 (a) REPORT TO CONGRESS.—Within 24 months after 

20 the date of enactment of this section, the Secretary of the 

21 Interior, in cooperation with the Secretary of Agriculture, 

22 shall develop and report to the Congress recommendations 

23 on opportunities to develop renewable energy on public 

24 lands under the jurisdiction of the Secretary of the Interior 
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1 and National Forest System lands under the jurisdiction 

2 of the Secretary of Agriculture. The report shall include—

3 (1) 5-year plans developed by the Secretary of 

4 the Interior and the Secretary of Agriculture, respec5 tively, for encouraging the development of wind and 

6 solar energy consistent with applicable law and man7 agement plans; and 

8 (2) an analysis of—

9 (A) the use of rights-of-ways, leases, or other 

10 methods to develop wind and solar energy on 

11 such lands; 

12 (B) the anticipated benefits of grants, loans, 

13 tax credits, or other provisions to promote wind 

14 and solar energy development on such lands; and 

15 (C) any issues that the Secretary of the In16 terior or the Secretary of Agriculture have en17 countered in managing wind or solar energy 

18 projects on such lands, or believe are likely to 

19 arise in relation to the development of wind or 

20 solar energy on such lands; 

21 (3) a list, developed in consultation with the Sec22 retary of Energy and the Secretary of Defense, of 

23 lands under the jurisdiction of the Department of En24 ergy or Defense that would be suitable for develop25 ment for wind or solar energy, and any recommended
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1 statutory and regulatory mechanisms for such devel2 opment; and 

3 (4) any recommendations pertaining to the 

4 issues addressed in the report. 

5 (b) NATIONAL ACADEMY OF SCIENCES STUDY.—

6 (1) IN GENERAL.—Within 90 days after the date 

7 of the enactment of this Act, the Secretary of the Inte8 rior shall contract with the National Academy of 

9 Sciences to—

10 (A) study the potential for the development 

11 of wind, solar, and ocean energy on the Outer 

12 Continental Shelf; 

13 (B) assess existing Federal authorities for 

14 the development of such resources; and 

15 (C) recommend statutory and regulatory 

16 mechanisms for such development. 

17 (2) TRANSMITTAL OF RESULTS.—The results of 

18 the study shall be transmitted to the Congress within 

19 24 months after the date of the enactment of this Act.

20 SEC. 7074. ASSESSMENT OF RENEWABLE ENERGY RE21 SOURCES. 

22 (a) RESOURCE ASSESSMENT.—Not later than 3 

23 months after the date of enactment of this Act, and each 

24 year thereafter, the Secretary of Energy shall review the 

25 available assessments of renewable energy resources avail-
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1 able within the United States, including solar, wind, bio2 mass, ocean, geothermal, and hydroelectric energy resources, 

3 and undertake new assessments as necessary, taking into 

4 account changes in market conditions, available tech5 nologies, and other relevant factors. 

6 (b) CONTENTS OF REPORTS.—Not later than 1 year 

7 after the date of enactment of this Act, and each year there8 after, the Secretary shall publish a report based on the as9 sessment under subsection (a). The report shall contain—

10 (1) a detailed inventory describing the available 

11 amount and characteristics of the renewable energy 

12 resources; and 

13 (2) such other information as the Secretary be14 lieves would be useful in developing such renewable 

15 energy resources, including descriptions of sur16 rounding terrain, population and load centers, near17 by energy infrastructure, location of energy and water 

18 resources, and available estimates of the costs needed 

19 to develop each resource, together with an identifica20 tion of any barriers to providing adequate trans21 mission for remote sources of renewable energy re22 sources to current and emerging markets, rec23 ommendations for removing or addressing such bar24 riers, and ways to provide access to the grid that do 
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1 not unfairly disadvantage renewable or other energy 

2 producers. 

3 Subtitle G—Market Transparency, 

4 Round Trip Trading Prohibi5 tion, and Enforcement 

6 SEC. 7081. MARKET TRANSPARENCY RULES. 

7 Part II of the Federal Power Act is amended by adding 

8 the following new section at the end thereof: 

9 ‘‘SEC. 219. MARKET TRANSPARENCY RULES. 

10 ‘‘(a) COMMISSION RULES.—Not later than 180 days 

11 after the date of enactment of this section, the Commission 

12 shall issue rules establishing an electronic information sys13 tem to provide the Commission and the public with access 

14 to such information as is necessary or appropriate to facili15 tate price transparency and participation in markets sub16 ject to the Commission’s jurisdiction. Such systems shall 

17 provide information about the availability and market 

18 price of sales of electric energy at wholesale in interstate 

19 commerce and transmission of electric energy in interstate 

20 commerce to the Commission, State commissions, buyers 

21 and sellers of wholesale electric energy, users of trans22 mission services, and the public on a timely basis. The Com23 mission shall have authority to obtain such information 

24 from any person, and any entity described in section 201(f), 
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1 who sells electric energy at wholesale in interstate commerce 

2 or provides transmission services in interstate commerce. 

3 ‘‘(b) EXEMPTIONS.—The Commission shall exempt 

4 from disclosure information it determines would, if dis5 closed, (1) be detrimental to the operation of an effective 

6 market; or (2) jeopardize system security. This section shall 

7 not apply to an entity described in section 212(k)(2)(B) 

8 with respect to transactions for the purchase or sale of 

9 wholesale electric energy and transmission services within 

10 the area described in section 212(k)(2)(A).’’. 

11 SEC. 7082. PROHIBITION ON ROUND-TRIP TRADING. 

12 Part II of the Federal Power Act is amended by adding 

13 the following new section at the end thereof: 

14 ‘‘SEC. 220. PROHIBITION ON ROUND-TRIP TRADING. 

15 ‘‘(a) PROHIBITION.—It shall be a violation of this Act 

16 for any person, and any entity described in section 201(f), 

17 willfully and knowingly to enter into any contract or other 

18 arrangement to execute a round-trip trade for the purchase 

19 or sale of electric energy at wholesale. 

20 ‘‘(b) DEFINITION OF ROUND-TRIP TRADE.—For the 

21 purposes of this section, the term ‘round-trip trade’ means 

22 a transaction, or combination of transactions, in which a 

23 person or other entity—
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1 ‘‘(1) enters into a contract or other arrangement 

2 to purchase from, or sell to, any other person or other 

3 entity electric energy at wholesale; 

4 ‘‘(2) simultaneously with entering into the con5 tract described in paragraph (1), arranges a finan6 cially offsetting trade with such other person or entity 

7 for the same quantity of electric energy so that, collec8 tively, the purchase and sale transactions in them9 selves result in no financial gain or loss; and 

10 ‘‘(3) has a specific intent to distort reported reve11 nues, trading volumes, or prices.’’. 

12 SEC. 7083. CONFORMING CHANGES. 

13 Section 201(e) of the Federal Power Act is amended 

14 by striking ‘‘or 212’’ and inserting ‘‘212, 215, 216, 217, 

15 218, 219, or 220’’. Section 201(b)(2) of such Act is amended 

16 by striking ‘‘and 212’’ and inserting ‘‘212, 215, 216, 217, 

17 218, 219, and 220’’. 

18 SEC. 7084. ENFORCEMENT. 

19 (a) COMPLAINTS.—Section 306 of the Federal Power 

20 Act (16 U.S.C. 825e) is amended by—

21 (1) inserting ‘‘electric utility,’’ after ‘‘Any per22 son,’’; and 

23 (2) inserting ‘‘, transmitting utility,’’ after ‘‘li24 censee’’ each place it appears.
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1 (b) REVIEW OF COMMISSION ORDERS.—Section 313(a) 

2 of the Federal Power Act (16 U.S.C. 8251) is amended by 

3 inserting ‘‘electric utility,’’ after ‘‘person,’’ in the first place 

4 it appears and by striking ‘‘any person unless such person’’ 

5 and inserting ‘‘any entity unless such entity’’. 

6 (c) CRIMINAL PENALTIES.—Section 316 of the Federal 

7 Power Act (16 U.S.C. 825o) is amended—

8 (1) in subsection (a), by striking ‘‘$5,000’’ and 

9 inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 

10 and inserting ‘‘five years’’; 

11 (2) in subsection (b), by striking ‘‘$500’’ and in12 serting ‘‘$25,000’’; and 

13 (3) by striking subsection (c). 

14 (d) CIVIL PENALTIES.—Section 316A of the Federal 

15 Power Act (16 U.S.C. 825–1) is amended—

16 (1) in subsections (a) and (b), by striking ‘‘sec17 tion 211, 212, 213, or 214’’ each place it appears and 

18 inserting ‘‘Part II’’; and 

19 (2) in subsection (b), by striking ‘‘$10,000’’ and 

20 inserting ‘‘$1,000,000’’. 

21 Subtitle H—Consumer Protections 

22 SEC. 7091. REFUND EFFECTIVE DATE. 

23 Section 206(b) of the Federal Power Act (16 U.S.C. 

24 824e(b)) is amended by—
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1 (1) striking ‘‘the date 60 days after the filing of 

2 such complaint nor later than 5 months after the ex3 piration of such 60-day period’’ in the second sen4 tence and inserting ‘‘the date of the filing of such 

5 complaint nor later than 5 months after the filing of 

6 such complaint’’; 

7 (2) striking ‘‘60 days after’’ in the third sentence 

8 and inserting ‘‘of’’; 

9 (3) striking ‘‘expiration of such 60-day period’’ 

10 in the third sentence and inserting ‘‘publication 

11 date’’; and 

12 (4) in the fifth sentence after ‘‘rendered by the’’ 

13 insert ‘‘date 60 days after the’’. 

14 SEC. 7092. JURISDICTION OVER INTERSTATE SALES. 

15 (a) SCOPE OF AUTHORITY.—Section 206 of the Federal 

16 Power Act (16 U.S.C. 824e) is amended by adding the fol17 lowing new subsection at the end thereof: 

18 ‘‘(e)(1) If an entity that is not a public utility (includ19 ing an entity referred to in section 201(f)) voluntarily 

20 makes a spot market sale of electric energy and such sale 

21 violates Commission rules in effect at the time of such sale, 

22 such entity shall be subject to the Commission’s refund au23 thority under this section with respect to such violation. 

24 ‘‘(2) This section shall not apply to any entity that 

25 is either—
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1 ‘‘(A) an entity described in section 201(f); or 

2 ‘‘(B) a rural electric cooperative 

3 that does not sell more than 4,000,000 megawatt hours of 

4 electricity per year. 

5 ‘‘(3) For purposes of this subsection, the term ‘spot 

6 market sale’ means an agreement for the sale of electric en7 ergy at wholesale in interstate commerce that is for 24 hours 

8 or less and that is entered into the day of, or the day prior 

9 to, delivery.’’. 

10 (b) CONFORMING AMENDMENTS.—(1) Section 206 of 

11 the Federal Power Act (16 U.S.C. 824e) is amended as fol12 lows: 

13 (A) In subsection (b), in the seventh sentence, by 

14 striking ‘‘the public utility to make’’. 

15 (B) In the first sentence of subsection (a), by 

16 striking ‘‘hearing had’’ and inserting ‘‘hearing held’’. 

17 (2) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) 

18 is amended as follows: 

19 (A) In the first sentence by striking ‘‘sections 

20 210’’ and inserting ‘‘sections 206(f), 210’’. 

21 (B) In the second sentence by striking ‘‘section 

22 210’’ and inserting ‘‘section 206(f), 210,’’. 

23 (3) Section 201(e) of the Federal Power Act is amended 

24 by striking ‘‘section 210’’ and inserting ‘‘section 206(f), 

25 210’’. 
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1 (c) UNIFORM INVESTIGATION AUTHORITY.—Section 

2 307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is 

3 amended as follows: 

4 (1) By inserting ‘‘, electric utility, transmitting 

5 utility, or other entity’’ after ‘‘person’’ each time it 

6 appears. 

7 (2) By striking the period at the end of the first 

8 sentence and inserting the following: ‘‘or in obtaining 

9 information about the sale of electric energy at whole10 sale in interstate commerce and the transmission of 

11 electric energy in interstate commerce.’’. 

12 (d) SANCTITY OF CONTRACT.—(1) The Federal Energy 

13 Regulatory Commission shall have no authority to abrogate 

14 or modify any provision of a contract, except upon a find15 ing, after notice and opportunity for a hearing, that such 

16 action is necessary to protect the public interest, unless such 

17 contract expressly provides for a different standard of re18 view. 

19 (2) For purposes of this subsection, a contract is any 

20 agreement, in effect and subject to the jurisdiction of the 

21 Commission—

22 (A) under section 4 of the Natural Gas Act or 

23 section 205 of the Federal Power Act; and 

24 (B) that is not for sales in an organized ex25 change or auction spot market.
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1 (3) This subsection shall not apply to any contract exe2 cuted before the date of enactment of this section unless such 

3 contract is an interconnection agreement, nor shall this sub4 section affect the outcome in any proceeding regarding any 

5 contract for sales of electric power executed before the date 

6 of enactment of this section. 

7 SEC. 7093. CONSUMER PRIVACY. 

8 (a) IN GENERAL.—The Federal Trade Commission 

9 shall issue rules protecting the privacy of electric consumers 

10 from the disclosure of consumer information obtained in 

11 connection with the sale or delivery of electric energy to elec12 tric consumers. The Federal Trade Commission shall pro13 ceed in accordance with section 553 of title 5, United States 

14 Code, when prescribing a rule under this section. 

15 (b) STATE AUTHORITY.—If the Federal Trade Com16 mission determines that a State’s regulations provide equiv17 alent or greater protection than the provisions of this sec18 tion, such State regulations shall apply in that State in 

19 lieu of the regulations issued by the Commission under this 

20 section. 

21 SEC. 7094. UNFAIR TRADE PRACTICES. 

22 (a) SLAMMING.—The Federal Trade Commission shall 

23 issue rules prohibiting the change of selection of an electric 

24 utility except with the informed consent of the electric con-
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1 sumer or if approved by the appropriate State regulatory 

2 authority. 

3 (b) CRAMMING.—The Federal Trade Commission shall 

4 issue rules prohibiting the sale of goods and services to an 

5 electric consumer unless expressly authorized by law or the 

6 electric consumer. 

7 (c) RULEMAKING.—The Federal Trade Commission 

8 shall proceed in accordance with section 553 of title 5, 

9 United States Code, when prescribing a rule under this sec10 tion. 

11 (d) STATE AUTHORITY.—If the Federal Trade Com12 mission determines that a State’s regulations provide equiv13 alent or greater protection than the provisions of this sec14 tion, such State regulations shall apply in that State in 

15 lieu of the regulations issued by the Commission under this 

16 section. 

17 Subtitle I—Merger Review Reform 

18 and Accountability 

19 SEC. 7101. MERGER REVIEW REFORM AND ACCOUNT20 ABILITY. 

21 (a) MERGER REVIEW REFORM.—Within 180 days 

22 after the date of enactment of this Act, the Secretary of En23 ergy, in consultation with the Federal Energy Regulatory 

24 Commission and the Department of Justice, shall prepare, 

25 and transmit to the Committee on Energy and Commerce 
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1 of the House of Representatives and the Committee on En2 ergy and Natural Resources of the Senate each of the fol3 lowing: 

4 (1) A study of the extent to which the authorities 

5 vested in the Federal Energy Regulatory Commission 

6 under section 203 of the Federal Power Act are dupli7 cative of authorities vested in—

8 (A) other agencies of Federal and State gov9 ernment; and 

10 (B) the Federal Energy Regulatory Com11 mission, including under sections 205 and 206 of 

12 the Federal Power Act. 

13 (2) Recommendations on reforms to the Federal 

14 Power Act that would eliminate any unnecessary du15 plication in the exercise of regulatory authority or 

16 unnecessary delays in the approval (or disapproval) 

17 of applications for the sale, lease, or other disposition 

18 of public utility facilities. 

19 (b) MERGER REVIEW ACCOUNTABILITY.—Not later 

20 than 1 year after the date of enactment of this Act and 

21 annually thereafter, with respect to all orders issued within 

22 the preceding year that impose a condition on a sale, lease, 

23 or other disposition of public utility facilities under section 

24 203(b) of the Federal Power Act, the Federal Energy Regu25 latory Commission shall transmit a report to the Committee 
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1 on Energy and Commerce of the House of Representatives 

2 and the Committee on Energy and Natural Resources of 

3 the Senate explaining each of the following: 

4 (1) The condition imposed. 

5 (2) Whether the Commission could have imposed 

6 such condition by exercising its authority under any 

7 provision of the Federal Power Act other than under 

8 section 203(b). 

9 (3) If the Commission could not have imposed 

10 such condition other than under section 203(b), why 

11 the Commission determined that such condition was 

12 consistent with the public interest.

13 Subtitle J—Study of Economic 

14 Dispatch 

15 SEC. 7111. STUDY ON THE BENEFITS OF ECONOMIC DIS16 PATCH. 

17 (a) STUDY.—The Secretary of Energy, in coordination 

18 and consultation with the States, shall conduct a study 

19 on—

20 (1) the procedures currently used by electric util21 ities to perform economic dispatch, 

22 (2) identifying possible revisions to those proce23 dures to improve the ability of nonutility generation 

24 resources to offer their output for sale for the purpose 

25 of inclusion in economic dispatch; and 
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1 (3) the potential benefits to residential, commer2 cial, and industrial electricity consumers nationally 

3 and in each state if economic dispatch procedures 

4 were revised to improve the ability of nonutility gen5 eration resources to offer their output for inclusion in 

6 economic dispatch. 

7 (b) DEFINITION.—The term ‘‘economic dispatch’’ when 

8 used in this section means the operation of generation fa9 cilities to produce energy at the lowest cost to reliably serve 

10 consumers, recognizing any operational limits of generation 

11 and transmission facilities. 

12 (c) REPORT TO CONGRESS AND THE STATES.—Not 

13 later than 90 days after the date of enactment of this Act, 

14 and on a yearly basis following, the Secretary of Energy 

15 shall submit a report to the Congress and the States on the 

16 results of the study conducted under subsection (a), includ17 ing recommendations to the Congress and the States for any 

18 suggested legislative or regulatory changes.

19 TITLE VIII—COAL

20 SEC. 8001. AUTHORIZATION OF APPROPRIATIONS. 

21 (a) CLEAN COAL POWER INITIATIVE.—Except as pro22 vided in subsection (b), there are authorized to be appro23 priated to the Secretary to carry out the activities author24 ized by this title $200,000,000 for each of the fiscal years 

25 2005 through 2013, to remain available until expended.
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1 (b) LIMIT ON USE OF FUNDS.—The Secretary shall 

2 transmit to the Congress the report required by this sub3 section not later than September 30, 2004. Notwithstanding 

4 subsection (a), no funds may be used to carry out the activi5 ties authorized by this title after September 30, 2004, unless 

6 the report has been transmitted. The report shall include, 

7 with respect to subsection (a), a 10-year plan containing—

8 (1) a detailed assessment of whether the aggre9 gate funding levels provided under subsection (a) are 

10 the appropriate funding levels for that program; 

11 (2) a detailed description of how proposals will 

12 be solicited and evaluated, including a list of all ac13 tivities expected to be undertaken; 

14 (3) a detailed list of technical milestones for each 

15 coal and related technology that will be pursued; and 

16 (4) a detailed description of how the program 

17 will avoid problems enumerated in General Account18 ing Office reports on the Clean Coal Technology Pro19 gram, including problems that have resulted in 

20 unspent funds and projects that failed either finan21 cially or scientifically. 

22 (c) APPLICABILITY.—Subsection (b) shall not apply to 

23 any project begun before September 30, 2004. 
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1 SEC. 8002. PROJECT CRITERIA. 

2 (a) IN GENERAL.—The Secretary shall not provide 

3 funding under this title for any project that does not ad4 vance efficiency, environmental performance, and cost com5 petitiveness well beyond the level of technologies that on a 

6 full scale are in operation or have been demonstrated as 

7 of the date of the enactment of this Act. 

8 (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER

9 INITIATIVE.—

10 (1) GASIFICATION.—(A) In allocating the funds 

11 made available under section 8001(a), the Secretary 

12 shall ensure that up to 80 percent of the funds are 

13 used only for coal-based gasification technologies, in14 cluding gasification combined cycle, gasification fuel 

15 cells, gasification coproduction and hybrid gasifi16 cation/combustion. 

17 (B) The Secretary shall set technical milestones 

18 specifying emissions levels for projects funded under 

19 this paragraph. The milestones shall be designed to 

20 increasingly restrict emission levels through the life of 

21 the program. The milestones shall be designed to 

22 achieve by 2020 coal gasification projects able—

23 (i) to remove 99 percent of sulfur dioxide; 

24 (ii) to emit no more than .05 lbs of NOx per 

25 million BTU; 
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1 (iii) to achieve substantial reductions in 

2 mercury emissions; and 

3 (iv) to achieve a thermal efficiency of— 

4 (I) 60 percent for coal of more than 

5 9,000 Btu; 

6 (II) 59 percent for coal of 7,000 to 

7 9,000 Btu; and 

8 (III) 50 percent for coal of less than 

9 7,000 Btu. 

10 (2) OTHER PROJECTS.—For projects not de11 scribed in paragraph (1), the Secretary shall set tech12 nical milestones specifying emissions levels. The mile13 stones shall be designed to increasingly restrict emis14 sion levels through the life of the program. The mile15 stones shall be designed to achieve by 2010 projects 

16 able—

17 (A) to remove 97 percent of sulfur dioxide; 

18 (B) to emit no more than .08 lbs of NOx per 

19 million BTU; 

20 (C) to achieve substantial reductions in 

21 mercury emissions; and 

22 (D) except as provided in paragraph (4), to 

23 achieve a thermal efficiency of—

24 (i) 45 percent for coal of more than 

25 9,000 Btu; 
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1 (ii) 44 percent for coal of 7,000 to 

2 9,000 Btu; and 

3 (iii) 42 percent for coal of less than 

4 7,000 Btu. 

5 (3) CONSULTATION.—Before setting the technical 

6 milestones under paragraphs (1)(B) and (2), the Sec7 retary shall consult with the Administrator of the En8 vironmental Protection Agency and interested enti9 ties, including coal producers, industries using coal, 

10 organizations to promote coal or advanced coal tech11 nologies, environmental organizations, and organiza12 tions representing workers. 

13 (4) EXISTING UNITS.—In the case of projects at 

14 existing units, in lieu of the thermal efficiency re15 quirements set forth in paragraph (1)(B)(iv) and 

16 (2)(D), the projects shall be designed to achieve an 

17 overall thermal design efficiency improvement com18 pared to the efficiency of the unit as operated, of not 

19 less than— 

20 (A) 7 percent for coal of more than 9,000 

21 Btu; 

22 (B) 6 percent for coal of 7,000 to 9,000 Btu; 

23 or 

24 (C) 4 percent for coal of less than 7,000 

25 Btu.
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1 (5) PERMITTED USES.—In allocating funds 

2 made available under section 8001, the Secretary may 

3 fund projects that include, as part of the project, the 

4 separation and capture of carbon dioxide. 

5 (c) FINANCIAL CRITERIA.—The Secretary shall not 

6 provide a funding award under this title unless the recipi7 ent has documented to the satisfaction of the Secretary 

8 that—

9 (1) the award recipient is financially viable 

10 without the receipt of additional Federal funding; 

11 (2) the recipient will provide sufficient informa12 tion to the Secretary for the Secretary to ensure that 

13 the award funds are spent efficiently and effectively; 

14 and 

15 (3) a market exists for the technology being dem16 onstrated or applied, as evidenced by statements of 

17 interest in writing from potential purchasers of the 

18 technology. 

19 (d) FINANCIAL ASSISTANCE.—The Secretary shall pro20 vide financial assistance to projects that meet the require21 ments of subsections (a), (b), and (c) and are likely to—

22 (1) achieve overall cost reductions in the utiliza23 tion of coal to generate useful forms of energy; 

24 (2) improve the competitiveness of coal among 

25 various forms of energy in order to maintain a diver-
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1 sity of fuel choices in the United States to meet elec2 tricity generation requirements; and 

3 (3) demonstrate methods and equipment that are 

4 applicable to 25 percent of the electricity generating 

5 facilities, utilizing different types of coal, that use 

6 coal as the primary feedstock as of the date of the en7 actment of this Act. 

8 (e) FEDERAL SHARE.—The Federal share of the cost 

9 of a project funded by the Secretary under this title shall 

10 not exceed 50 percent. 

11 (f) APPLICABILITY.—No technology, or level of emis12 sion reduction, shall be treated as adequately demonstrated 

13 for purposes of section 111 of the Clean Air Act, achievable 

14 for purposes of section 169 of that Act, or achievable in 

15 practice for purposes of section 171 of that Act solely by 

16 reason of the use of such technology, or the achievement of 

17 such emission reduction, by one or more facilities receiving 

18 assistance under this title. 

19 SEC. 8003. REPORT. 

20 Not later than 1 year after the date of the enactment 

21 of this Act, and once every 2 years thereafter for the fol22 lowing 8 years, the Secretary, in consultation with other 

23 appropriate Federal agencies, shall transmit to the Congress 

24 a report describing—
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1 (1) the technical milestones set forth in section 

2 8002 and how those milestones ensure progress toward 

3 meeting the requirements of subsections (b)(1)(B) and 

4 (b)(2) of section 8002; and 

5 (2) the status of projects funded under this title. 

6 SEC. 8004. CLEAN COAL CENTERS OF EXCELLENCE. 

7 As part of the program authorized in section 8001, the 

8 Secretary shall award competitive, merit-based grants to 

9 universities for the establishment of Centers of Excellence 

10 for Energy Systems of the Future. The Secretary shall pro11 vide grants to universities that can show the greatest poten12 tial for advancing new clean coal technologies.

13 TITLE IX—MOTOR FUELS 

14 Subtitle A—General Provisions 

15 SEC. 9101. RENEWABLE CONTENT OF MOTOR VEHICLE 

16 FUEL. 

17 (a) IN GENERAL.—Section 211 of the Clean Air Act 

18 (42 U.S.C. 7545) is amended—

19 (1) by redesignating subsection (o) as subsection 

20 (q); and 

21 (2) by inserting after subsection (n) the fol22 lowing: 

23 ‘‘(o) RENEWABLE FUEL PROGRAM.—

24 ‘‘(1) DEFINITIONS.—In this section: 
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1 ‘‘(A) CELLULOSIC BIOMASS ETHANOL.—The 

2 term ‘cellulosic biomass ethanol’ means ethanol 

3 derived from any lignocellulosic or hemicellulosic 

4 matter that is available on a renewable or recur5 ring basis, including—

6 ‘‘(i) dedicated energy crops and trees; 

7 ‘‘(ii) wood and wood residues; 

8 ‘‘(iii) plants; 

9 ‘‘(iv) grasses; 

10 ‘‘(v) agricultural residues; 

11 ‘‘(vi) fibers; 

12 ‘‘(vii) animal wastes and other waste 

13 materials; and 

14 ‘‘(viii) municipal solid waste. 

15 ‘‘(B) RENEWABLE FUEL.—

16 ‘‘(i) IN GENERAL.—The term ‘renew17 able fuel’ means motor vehicle fuel that—

18 ‘‘(I)(aa) is produced from grain, 

19 starch, oilseeds, or other biomass; or 

20 ‘‘(bb) is natural gas produced 

21 from a biogas source, including a land22 fill, sewage waste treatment plant, 

23 feedlot, or other place where decaying 

24 organic material is found; and
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1 ‘‘(II) is used to replace or reduce 

2 the quantity of fossil fuel present in a 

3 fuel mixture used to operate a motor 

4 vehicle. 

5 ‘‘(ii) INCLUSION.—The term ‘renewable 

6 fuel’ includes cellulosic biomass ethanol and 

7 biodiesel (as defined in section 312(f) of the 

8 Energy Policy Act of 1992 (42 U.S.C. 

9 13220(f)) and any blending components de10 rived from renewable fuel (provided that 

11 only the renewable fuel portion of any such 

12 blending component shall be considered part 

13 of the applicable volume under the renew14 able fuel program established by this sub15 section). 

16 ‘‘(C) SMALL REFINERY.—The term ‘small 

17 refinery’ means a refinery for which average ag18 gregate daily crude oil throughput for the cal19 endar year (as determined by dividing the aggre20 gate throughput for the calendar year by the 

21 number of days in the calendar year) does not 

22 exceed 75,000 barrels. 

23 ‘‘(2) RENEWABLE FUEL PROGRAM.—

24 ‘‘(A) IN GENERAL.—Not later than 1 year 

25 from enactment of this provision, the Adminis-
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1 trator shall promulgate regulations ensuring that 

2 gasoline sold or dispensed to consumers in the 

3 contiguous United States, on an annual average 

4 basis, contains the applicable volume of renew5 able fuel as specified in subparagraph (B). Re6 gardless of the date of promulgation, such regula7 tions shall contain compliance provisions for re8 finers, blenders, and importers, as appropriate, 

9 to ensure that the requirements of this section 

10 are met, but shall not restrict where renewables 

11 can be used, or impose any per-gallon obligation 

12 for the use of renewables. If the Administrator 

13 does not promulgate such regulations, the appli14 cable percentage, on a volume percentage of gaso15 line basis, shall be 1.62 in 2005. 

16 ‘‘(B) APPLICABLE VOLUME.—

17 ‘‘(i) CALENDAR YEARS 2005 THROUGH

18 2015.—For the purpose of subparagraph (A), 

19 the applicable volume for any of calendar 

20 years 2005 through 2015 shall be deter21 mined in accordance with the following 

22 table:

Applicable volume of renewable fuel 

‘‘Calendar year: (In billions of gallons) 

2005 ............................................................................................ 2.7

2006 ............................................................................................ 2.7

2007 ............................................................................................ 2.9

2008 ............................................................................................ 2.9

2009 ............................................................................................ 3.4
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‘‘Calendar year: (In billions of gallons) 

2010 ............................................................................................ 3.4

2011 ............................................................................................ 3.4

2012 ............................................................................................ 4.2

2013 ............................................................................................ 4.2

2014 ............................................................................................ 4.2

2015 ............................................................................................ 5.0.

1 ‘‘(ii) CALENDAR YEAR 2016 AND

2 THEREAFTER.—For the purpose of subpara3 graph (A), the applicable volume for cal4 endar year 2016 and each calendar year 

5 thereafter shall be equal to the product ob6 tained by multiplying—

7 ‘‘(I) the number of gallons of gaso8 line that the Administrator estimates 

9 will be sold or introduced into com10 merce in the calendar year; and 

11 ‘‘(II) the ratio that—

12 ‘‘(aa) 5.0 billion gallons of 

13 renewable fuels; bears to 

14 ‘‘(bb) the number of gallons 

15 of gasoline sold or introduced into 

16 commerce in calendar year 2015. 

17 ‘‘(3) APPLICABLE PERCENTAGES.—Not later 

18 than October 31 of each calendar year after 2002, the 

19 Administrator of the Energy Information Adminis20 tration shall provide the Administrator an estimate of 

21 the volumes of gasoline sales in the United States for 

22 the coming calendar year. Based on such estimates, 
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1 the Administrator shall, by November 30 of each cal2 endar year after 2003, determine and publish in the 

3 Federal Register, the renewable fuel obligation, on a 

4 volume percentage of gasoline basis, applicable to re5 finers, blenders, and importers, as appropriate, for 

6 the coming calendar year, to ensure that the require7 ments of paragraph (2) are met. For each calendar 

8 year, the Administrator shall establish a single appli9 cable percentage that applies to all parties, and make 

10 provision to avoid redundant obligations. In deter11 mining the applicable percentages, the Administrator 

12 shall make adjustments to account for the use of re13 newable fuels by exempt small refineries during the 

14 previous year. 

15 ‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the 

16 purpose of paragraph (2), 1 gallon of cellulosic bio17 mass ethanol shall be considered to be the equivalent 

18 of 1.5 gallon of renewable fuel. 

19 ‘‘(5) CREDIT PROGRAM.—

20 ‘‘(A) IN GENERAL.—The regulations pro21 mulgated to carry out this subsection shall pro22 vide for the generation of an appropriate 

23 amount of credits by any person that refines, 

24 blends, or imports gasoline that contains a quan25 tity of renewable fuel that is greater than the 
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1 quantity required under paragraph (2). Such 

2 regulations shall provide for the generation of an 

3 appropriate amount of credits for biodiesel fuel. 

4 If a small refinery notifies the Administrator 

5 that it waives the exemption provided by this 

6 Act, the regulations shall provide for the genera7 tion of credits by the small refinery beginning in 

8 the year following such notification. 

9 ‘‘(B) USE OF CREDITS.—A person that gen10 erates credits under subparagraph (A) may use 

11 the credits, or transfer all or a portion of the 

12 credits to another person, for the purpose of com13 plying with paragraph (2). 

14 ‘‘(C) LIFE OF CREDITS.—A credit generated 

15 under this paragraph shall be valid to show com16 pliance: 

17 ‘‘(i) in the calendar year in which the 

18 credit was generated or the next calendar 

19 year, or 

20 ‘‘(ii) in the calendar year in which the 

21 credit was generated or next two consecutive 

22 calendar years if the Administrator promul23 gates regulations under paragraph (6). 

24 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

25 CREDITS.—The regulations promulgated to carry
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1 out this subsection shall include provisions al2 lowing any person that is unable to generate or 

3 purchase sufficient credits to meet the require4 ments under paragraph (2) to carry forward a 

5 renewables deficit provided that, in the calendar 

6 year following the year in which the renewables 

7 deficit is created, such person shall achieve com8 pliance with the renewables requirement under 

9 paragraph (2), and shall generate or purchase 

10 additional renewables credits to offset the renew11 ables deficit of the previous year. 

12 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

13 FUEL USE.—

14 ‘‘(A) STUDY.—For each of calendar years 

15 2005 through 2015, the Administrator of the En16 ergy Information Administration, shall conduct 

17 a study of renewable fuels blending to determine 

18 whether there are excessive seasonal variations in 

19 the use of renewable fuels. 

20 ‘‘(B) REGULATION OF EXCESSIVE SEASONAL

21 VARIATIONS.—If, for any calendar year, the Ad22 ministrator of the Energy Information Adminis23 tration, based on the study under subparagraph 

24 (A), makes the determinations specified in sub25 paragraph (C), the Administrator shall promul-
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1 gate regulations to ensure that 35 percent or 

2 more of the quantity of renewable fuels necessary 

3 to meet the requirement of paragraph (2) is used 

4 during each of the periods specified in subpara5 graph (D) of each subsequent calendar year. 

6 ‘‘(C) DETERMINATIONS.—The determina7 tions referred to in subparagraph (B) are that—

8 ‘‘(i) less than 35 percent of the quan9 tity of renewable fuels necessary to meet the 

10 requirement of paragraph (2) has been used 

11 during one of the periods specified in sub12 paragraph (D) of the calendar year; 

13 ‘‘(ii) a pattern of excessive seasonal 

14 variation described in clause (i) will con15 tinue in subsequent calendar years; and 

16 ‘‘(iii) promulgating regulations or 

17 other requirements to impose a 35% or 

18 more seasonal use of renewable fuels will 

19 not prevent or interfere with the attainment 

20 of national ambient air quality standards 

21 or significantly increase the price of motor 

22 fuels to the consumer. 

23 ‘‘(D) PERIODS.—The two periods referred to 

24 in this paragraph are—

25 ‘‘(i) April through September; and 
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1 ‘‘(ii) January through March and Oc2 tober through December. 

3 ‘‘(E) EXCLUSIONS.—Renewable fuels blend4 ed or consumed in 2005 in a State which has re5 ceived a waiver under section 209(b) shall not be 

6 included in the study in subparagraph (A). 

7 ‘‘(7) WAIVERS.—

8 ‘‘(A) IN GENERAL.—The Administrator, in 

9 consultation with the Secretary of Agriculture 

10 and the Secretary of Energy, may waive the re11 quirement of paragraph (2) in whole or in part 

12 on petition by one or more States by reducing 

13 the national quantity of renewable fuel required 

14 under this subsection—

15 ‘‘(i) based on a determination by the 

16 Administrator, after public notice and op17 portunity for comment, that implementa18 tion of the requirement would have a sig19 nificant and meaningful adverse impact on 

20 the economy or environment of a State, a 

21 region, or the United States, or will prevent 

22 or interfere with the attainment of a na23 tional ambient air quality standard in any 

24 area of a State; or 
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1 ‘‘(ii) based on a determination by the 

2 Administrator, after public notice and op3 portunity for comment, that there is an in4 adequate domestic supply or distribution 

5 capacity to meet the requirement. 

6 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad7 ministrator, in consultation with the Secretary 

8 of Agriculture and the Secretary of Energy, shall 

9 approve or disapprove a State petition for a 

10 waiver of the requirement of paragraph (2) with11 in 90 days after the date on which the petition 

12 is received by the Administrator. If the Adminis13 trator does not act to approve or disapprove a 

14 State petition for a waiver within 90 days, the 

15 Administrator shall publish a notice setting forth 

16 the reasons for not acting within the required 

17 90-day period. 

18 ‘‘(C) TERMINATION OF WAIVERS.—A waiver 

19 granted under subparagraph (A) shall terminate 

20 after 1 year, but may be renewed by the Admin21 istrator after consultation with the Secretary of 

22 Agriculture and the Secretary of Energy. 

23 ‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF

24 PROGRAM.—Not later than 180 days from enactment, 

25 the Secretary of Energy shall complete for the Admin-
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1 istrator a study assessing whether the renewable fuels 

2 requirement under paragraph (2) will likely result in 

3 significant adverse consumer impacts in 2005, on a 

4 national, regional or State basis. Such study shall 

5 evaluate renewable fuel supplies and prices, blendstock 

6 supplies, and supply and distribution system capa7 bilities. Based on such study, the Secretary shall 

8 make specific recommendations to the Administrator 

9 regarding waiver of the requirements of paragraph 

10 (2), in whole or in part, to avoid any such adverse 

11 impacts. Within 270 days from enactment, the Ad12 ministrator shall, consistent with the recommenda13 tions of the Secretary waive, in whole or in part, the 

14 renewable fuels requirement under paragraph (2) by 

15 reducing the national quantity of renewable fuel re16 quired under this subsection in 2005. This provision 

17 shall not be interpreted as limiting the Administra18 tor’s authority to waive the requirements of para19 graph (2) in whole, or in part, under paragraph (7) 

20 or paragraph (9), pertaining to waivers. 

21 ‘‘(9) ASSESSMENT AND WAIVER.—The Secretary 

22 of Energy, in consultation with the Administrator of 

23 the Environmental Protection Agency and the Sec24 retary of Agriculture on his own motion, or upon pe25 tition of any State shall evaluate the requirement of
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1 paragraph (2) and determine, prior to January 1, 

2 2007, or prior to January 1 of any subsequent year 

3 in which the applicable volume of renewable fuel is 

4 increased under paragraph (2)(B), whether the re5 quirement of paragraph (2), including the applicable 

6 volume of renewable fuel contained in paragraph 

7 (2)(B) should remain in effect, in whole or in part, 

8 during 2007 or any year or years subsequent to 2007. 

9 In evaluating the requirement of paragraph (2) and 

10 in making any determination under this section, the 

11 Secretary shall consider the best available informa12 tion and data collected by accepted methods or best 

13 available means regarding—

14 ‘‘(A) the capacity of renewable fuel pro15 ducers to supply an adequate amount of renew16 able fuel at competitive prices to fulfill the re17 quirement in paragraph (2); 

18 ‘‘(B) the potential of the requirement in 

19 paragraph (2) to significantly raise the price of 

20 gasoline, food or heating oil for consumers in 

21 any significant area or region of the country 

22 above the price that would otherwise apply to 

23 such commodities in the absence of the require24 ment; 
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1 ‘‘(C) the potential of the requirement in 

2 paragraph (2) to interfere with the supply of fuel 

3 in any significant gasoline market or region of 

4 the country, including interference with the effi5 cient operation of refiners, blenders, importers, 

6 wholesale suppliers, and retail vendors of gaso7 line, and other motor fuels; and 

8 ‘‘(D) the potential of the requirement to 

9 cause or promote exceedences of Federal, State, 

10 or local air quality standards. 

11 If the Secretary determines, after public notice and 

12 the opportunity for comment, that the requirement of 

13 paragraph (2) would have significant and meaningful 

14 adverse impact on the supply of fuel and related in15 frastructure or on the economy, environment, public 

16 health or environment of any significant area or re17 gion of the country, the Secretary may waive, in 

18 whole or in part, the requirement of paragraph (2) in 

19 any one year or period of years as well as reduce the 

20 applicable volume of renewable fuel contained in 

21 paragraph (2)(B) in any one year or period of years. 

22 ‘‘(10) SMALL REFINERIES.—

23 ‘‘(A) IN GENERAL.—The requirement of 

24 paragraph (2) shall not apply to small refineries 

25 until the first calendar year beginning more 
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1 than 5 years after the first year set forth in the 

2 table in paragraph (2)(B)(i). Not later than De3 cember 31, 2006, the Secretary of Energy shall 

4 complete for the Administrator a study to deter5 mine whether the requirement of paragraph (2) 

6 would impose a disproportionate economic hard7 ship on small refineries. For any small refinery 

8 that the Secretary of Energy determines would 

9 experience a disproportionate economic hardship, 

10 the Administrator shall extend the small refinery 

11 exemption for such small refinery for no less 

12 than two additional years. 

13 ‘‘(B) ECONOMIC HARDSHIP.—

14 ‘‘(i) EXTENSION OF EXEMPTION.—A 

15 small refinery may at any time petition the 

16 Administrator for an extension of the ex17 emption from the requirement of paragraph 

18 (2) for the reason of disproportionate eco19 nomic hardship. In evaluating a hardship 

20 petition, the Administrator, in consultation 

21 with the Secretary of Energy, shall consider 

22 the findings of the study in addition to 

23 other economic factors. 

24 ‘‘(ii) DEADLINE FOR ACTION ON PETI25 TIONS.—The Administrator shall act on 
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1 any petition submitted by a small refinery 

2 for a hardship exemption not later than 90 

3 days after the receipt of the petition. 

4 ‘‘(C) CREDIT PROGRAM.—If a small refin5 ery notifies the Administrator that it waives the 

6 exemption provided by this Act, the regulations 

7 shall provide for the generation of credits by the 

8 small refinery beginning in the year following 

9 such notification. 

10 ‘‘(D) OPT-IN FOR SMALL REFINERS.—A 

11 small refinery shall be subject to the require12 ments of this section if it notifies the Adminis13 trator that it waives the exemption under sub14 paragraph (A).’’. 

15 (b) PENALTIES AND ENFORCEMENT.—Section 211(d) 

16 of the Clean Air Act (42 U.S.C. 7545(d)) is amended—

17 (1) in paragraph (1)—

18 (A) in the first sentence, by striking ‘‘or 

19 (n)’’ each place it appears and inserting ‘‘(n) or 

20 (o)’’; and 

21 (B) in the second sentence, by striking ‘‘or 

22 (m)’’ and inserting ‘‘(m), or (o)’’; and 

23 (2) in the first sentence of paragraph (2), by 

24 striking ‘‘and (n)’’ each place it appears and insert25 ing ‘‘(n), and (o)’’. 
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1 (c) SURVEY OF RENEWABLE FUEL MARKET.—

2 (1) SURVEY AND REPORT.—Not later than De3 cember 1, 2006, and annually thereafter, the Admin4 istrator of the Environmental Protection Agency (in 

5 consultation with the Secretary of Energy acting 

6 through the Administrator of the Energy Information 

7 Administration) shall—

8 (A) conduct, with respect to each conven9 tional gasoline use area and each reformulated 

10 gasoline use area in each State, a survey to de11 termine the market shares of—

12 (i) conventional gasoline containing 

13 ethanol; 

14 (ii) reformulated gasoline containing 

15 ethanol; 

16 (iii) conventional gasoline containing 

17 renewable fuel; and 

18 (iv) reformulated gasoline containing 

19 renewable fuel; and 

20 (B) submit to Congress, and make publicly 

21 available, a report on the results of the survey 

22 under subparagraph (A). 

23 (2) RECORDKEEPING AND REPORTING REQUIRE24 MENTS.—The Administrator may require any refiner, 

25 blender, or importer to keep such records and make
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1 such reports as are necessary to ensure that the survey 

2 conducted under paragraph (1) is accurate. The Ad3 ministrator shall rely, to the extent practicable, on 

4 existing reporting and recordkeeping requirements to 

5 avoid duplicative requirements. 

6 (3) APPLICABLE LAW.—Activities carried out 

7 under this subsection shall be conducted in a manner 

8 designed to protect confidentiality of individual re9 sponses. 

10 (4) CALCULATION OF MARKET SHARES.—Market 

11 shares for conventional gasoline and reformulated 

12 gasoline use areas will be calculated on a statewide 

13 basis using information collected under paragraph (2) 

14 and other information available to the Administrator. 

15 Market share information may be based upon gasoline 

16 distribution patterns that include multistate use 

17 areas. 

18 SEC. 9102. FUELS SAFE HARBOR. 

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of Federal or State law, no renewable fuel, as defined 

21 by section 211(o)(1) of the Clean Air Act, or fuel containing 

22 MTBE, used or intended to be used as a motor vehicle fuel, 

23 nor any motor vehicle fuel containing such renewable fuel 

24 or MTBE, shall be deemed defective in design or manufac25 ture by virtue of the fact that it is, or contains, such a 
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1 renewable fuel or MTBE, if it does not violate a control 

2 or prohibition imposed by the Administrator under section 

3 211 of such Act, and the manufacturer is in compliance 

4 with all requests for information under subsection (b) of 

5 such section 211(b) of the Clean Air Act. If the safe harbor 

6 provided by this section does not apply, the existence of a 

7 design defect or manufacturing defect shall be determined 

8 under otherwise applicable law. Nothing in this paragraph 

9 shall be construed to affect the liability of any person for 

10 environmental remediation costs, drinking water contami11 nation, negligence, public nuisance or any other liability 

12 other than liability for a defect in design or manufacture 

13 of a motor vehicle fuel. 

14 (b) EFFECTIVE DATE.—This section shall be effective 

15 as of the date of enactment and shall apply with respect 

16 to all claims filed on or after that date. 

17 SEC. 9103. FINDINGS AND MTBE TRANSITION ASSISTANCE. 

18 (a) FINDINGS.—Congress finds that—

19 (1) since 1979, methyl tertiary butyl ether (re20 ferred to in this section as ‘‘MTBE’’) has been used 

21 nationwide at low levels in gasoline to replace lead as 

22 an octane booster or anti-knocking agent; 

23 (2) Public Law 101–549 (commonly known as 

24 the ‘‘Clean Air Act Amendments of 1990’’) (42 U.S.C. 

25 7401 et seq.) established a fuel oxygenate standard 
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1 under which reformulated gasoline must contain at 

2 least 2 percent oxygen by weight; 

3 (3) at the time of the adoption of the fuel oxygen 

4 standard, Congress was aware that significant use of 

5 MTBE would result from the adoption of that stand6 ard, and that the use of MTBE would likely be im7 portant to the cost-effective implementation of that 

8 program; 

9 (4) Congress was aware that gasoline and its 

10 component additives can and do leak from storage 

11 tanks; 

12 (5) the fuel industry responded to the fuel oxy13 genate standard established by Public Law 101–549 

14 by making substantial investments in—

15 (A) MTBE production capacity; and 

16 (B) systems to deliver MTBE-containing 

17 gasoline to the marketplace; 

18 (6) Congress has—

19 (A) reconsidered the relative value of the ox20 ygenate requirement for reformulated gasoline; 

21 and 

22 (B) decided to provide for the elimination of 

23 the oxygenate requirement for reformulated gaso24 line and to provide for a renewable content re25 quirement for motor fuel; and 
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1 (7) it is appropriate for Congress to provide 

2 some limited transition assistance—

3 (A) to merchant producers of MTBE who 

4 produced MTBE in response to a market created 

5 by the oxygenate requirement contained in the 

6 Clean Air Act; and 

7 (B) for the purpose of mitigating any fuel 

8 supply problems that may result from the elimi9 nation of the oxygenate requirement for reformu10 lated gasoline. 

11 (b) PURPOSES.—The purpose of this section is to pro12 vide assistance to merchant producers of MTBE in making 

13 the transition from producing MTBE to producing other 

14 fuel additives. 

15 (c) MTBE MERCHANT PRODUCER CONVERSION AS16 SISTANCE.—Section 211(c) of the Clean Air Act (42 U.S.C. 

17 7545(c)) is amended by adding at the end the following: 

18 ‘‘(5) MTBE MERCHANT PRODUCER CONVERSION

19 ASSISTANCE.—

20 ‘‘(A) IN GENERAL.—

21 ‘‘(i) GRANTS.—The Secretary of En22 ergy, in consultation with the Adminis23 trator, may make grants to merchant pro24 ducers of methyl tertiary butyl ether in the 

25 United States to assist the producers in the 
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1 conversion of eligible production facilities 

2 described in subparagraph (C) to the pro3 duction of iso-octane and alkylates. 

4 ‘‘(ii) DETERMINATION.—The Adminis5 trator, in consultation with the Secretary of 

6 Energy, may determine that transition as7 sistance for the production of iso-octane and 

8 alkylates is inconsistent with the provisions 

9 of subparagraph (B) and, on that basis, 

10 may deny applications for grants author11 ized by this provision. 

12 ‘‘(B) FURTHER GRANTS.—The Secretary of 

13 Energy, in consultation with the Administrator, 

14 may also further make grants to merchant pro15 ducers of MTBE in the United States to assist 

16 the producers in the conversion of eligible pro17 duction facilities described in subparagraph (C) 

18 to the production of such other fuel additives 

19 that, consistent with this subsection—

20 ‘‘(i) unless the Administrator deter21 mines that such fuel additives may reason22 ably be anticipated to endanger public 

23 health or the environment;
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1 ‘‘(ii) have been registered and have 

2 been tested or are being tested in accordance 

3 with the requirements of this section; and 

4 ‘‘(iii) will contribute to replacing gaso5 line volumes lost as a result of paragraph 

6 (5). 

7 ‘‘(C) ELIGIBLE PRODUCTION FACILITIES.—

8 A production facility shall be eligible to receive 

9 a grant under this paragraph if the production 

10 facility—

11 ‘‘(i) is located in the United States; 

12 and 

13 ‘‘(ii) produced methyl tertiary butyl 

14 ether for consumption before April 1, 2003 

15 and ceased production at any time after the 

16 date of enactment. 

17 ‘‘(D) AUTHORIZATION OF APPROPRIA18 TIONS.—There is authorized to be appropriated 

19 to carry out this paragraph $250,000,000 for 

20 each of fiscal years 2004 through 2006, to re21 main available until expended.’’.

22 (d) EFFECT ON STATE LAW.—The amendments made 

23 to the Clean Air Act by this title have no effect regarding 

24 any available authority of States to limit the use of methyl 

25 tertiary butyl ether in motor vehicle fuel.
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1 SEC. 9104. ELIMINATION OF OXYGEN CONTENT REQUIRE2 MENT FOR REFORMULATED GASOLINE. 

3 (a) ELIMINATION.—

4 (1) IN GENERAL.—Section 211(k) of the Clean 

5 Air Act (42 U.S.C. 7545(k)) is amended—

6 (A) in paragraph (2)—

7 (i) in the second sentence of subpara8 graph (A), by striking ‘‘(including the oxy9 gen content requirement contained in sub10 paragraph (B))’’; 

11 (ii) by striking subparagraph (B); and 

12 (iii) by redesignating subparagraphs 

13 (C) and (D) as subparagraphs (B) and (C), 

14 respectively; 

15 (B) in paragraph (3)(A), by striking clause 

16 (v); 

17 (C) in paragraph (7)—

18 (i) in subparagraph (A)—

19 (I) by striking clause (i); and 

20 (II) by redesignating clauses (ii) 

21 and (iii) as clauses (i) and (ii), respec22 tively; and 

23 (ii) in subparagraph (C)—

24 (I) by striking clause (ii); and 

25 (II) by redesignating clause (iii) 

26 as clause (ii); and 
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1 (2) EFFECTIVE DATE.—The amendments made 

2 by paragraph (1) take effect 270 days after the date 

3 of enactment of this Act, except that such amendments 

4 shall take effect upon enactment in any State that has 

5 received a waiver under section 209(b) of the Clean 

6 Air Act. 

7 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS8 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air Act 

9 (42 U.S.C. 7545(k)(1)) is amended—

10 (1) by striking ‘‘Within 1 year after the enact11 ment of the Clean Air Act Amendments of 1990,’’ and 

12 inserting the following: 

13 ‘‘(A) IN GENERAL.—Not later than Novem14 ber 15, 1991,’’; and 

15 (2) by adding at the end the following: 

16 ‘‘(B) MAINTENANCE OF TOXIC AIR POLLUT17 ANT EMISSIONS REDUCTIONS FROM REFORMU18 LATED GASOLINE.—

19 ‘‘(i) DEFINITIONS.—In this subpara20 graph the term ‘PADD’ means a Petroleum 

21 Administration for Defense District. 

22 ‘‘(ii) REGULATIONS REGARDING EMIS23 SIONS OF TOXIC AIR POLLUTANTS.—Not 

24 later than 270 days after the date of enact25 ment of this subparagraph the Adminis-
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1 trator shall establish, for each refinery or 

2 importer, standards for toxic air pollutants 

3 from use of the reformulated gasoline pro4 duced or distributed by the refinery or im5 porter that maintain the reduction of the 

6 average annual aggregate emissions of toxic 

7 air pollutants for reformulated gasoline pro8 duced or distributed by the refinery or im9 porter during calendar years 1999 and 

10 2000, determined on the basis of data col11 lected by the Administrator with respect to 

12 the refinery or importer. 

13 ‘‘(iii) STANDARDS APPLICABLE TO SPE14 CIFIC REFINERIES OR IMPORTERS.—

15 ‘‘(I) APPLICABILITY OF STAND16 ARDS.—For any calendar year, the 

17 standards applicable to a refinery or 

18 importer under clause (ii) shall apply 

19 to the quantity of gasoline produced or 

20 distributed by the refinery or importer 

21 in the calendar year only to the extent 

22 that the quantity is less than or equal 

23 to the average annual quantity of re24 formulated gasoline produced or dis-
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1 tributed by the refinery or importer 

2 during calendar years 1999 and 2000. 

3 ‘‘(II) APPLICABILITY OF OTHER

4 STANDARDS.—For any calendar year, 

5 the quantity of gasoline produced or 

6 distributed by a refinery or importer 

7 that is in excess of the quantity subject 

8 to subclause (I) shall be subject to 

9 standards for toxic air pollutants pro10 mulgated under subparagraph (A) and 

11 paragraph (3)(B). 

12 ‘‘(iv) CREDIT PROGRAM.—The Admin13 istrator shall provide for the granting and 

14 use of credits for emissions of toxic air pol15 lutants in the same manner as provided in 

16 paragraph (7). 

17 ‘‘(v) REGIONAL PROTECTION OF TOXICS

18 REDUCTION BASELINES.—

19 ‘‘(I) IN GENERAL.—Not later than 

20 60 days after the date of enactment of 

21 this subparagraph, and not later than 

22 April 1 of each calendar year that be23 gins after that date of enactment, the 

24 Administrator shall publish in the 

25 Federal Register a report that specifies,
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1 with respect to the previous calendar 

2 year—

3 ‘‘(aa) the quantity of refor4 mulated gasoline produced that is 

5 in excess of the average annual 

6 quantity of reformulated gasoline 

7 produced in 1999 and 2000; and 

8 ‘‘(bb) the reduction of the av9 erage annual aggregate emissions 

10 of toxic air pollutants in each 

11 PADD, based on retail survey 

12 data or data from other appro13 priate sources. 

14 ‘‘(II) EFFECT OF FAILURE TO

15 MAINTAIN AGGREGATE TOXICS REDUC16 TIONS.—If, in any calendar year, the 

17 reduction of the average annual aggre18 gate emissions of toxic air pollutants 

19 in a PADD fails to meet or exceed the 

20 reduction of the average annual aggre21 gate emissions of toxic air pollutants 

22 in the PADD in calendar years 1999 

23 and 2000, the Administrator, not later 

24 than 90 days after the date of publica-
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1 tion of the report for the calendar year 

2 under subclause (I), shall—

3 ‘‘(aa) identify, to the max4 imum extent practicable, the rea5 sons for the failure, including the 

6 sources, volumes, and characteris7 tics of reformulated gasoline that 

8 contributed to the failure; and 

9 ‘‘(bb) promulgate revisions to 

10 the regulations promulgated under 

11 clause (ii), to take effect not ear12 lier than 180 days but not later 

13 than 270 days after the date of 

14 promulgation, to provide that, 

15 notwithstanding clause (iii)(II), 

16 all reformulated gasoline produced 

17 or distributed at each refinery or 

18 importer shall meet the standards 

19 applicable under clause (ii) not 

20 later than April 1 of the year fol21 lowing the report in subclause (II) 

22 and for subsequent years. 

23 ‘‘(vi) REGULATIONS TO CONTROL HAZ24 ARDOUS AIR POLLUTANTS FROM MOTOR VE25 HICLES AND MOTOR VEHICLE FUELS.—Not 
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1 later than July 1, 2004, the Administrator 

2 shall promulgate final regulations to control 

3 hazardous air pollutants from motor vehi4 cles and motor vehicle fuels, as provided for 

5 in section 80.1045 of title 40, Code of Fed6 eral Regulations (as in effect on the date of 

7 enactment of this subparagraph).’’. 

8 (c) CONSOLIDATION IN REFORMULATED GASOLINE

9 REGULATIONS.—Not later than 180 days after the date of 

10 enactment of this Act, the Administrator shall revise the 

11 reformulated gasoline regulations under subpart D of part 

12 80 of title 40, Code of Federal Regulations, to consolidate 

13 the regulations applicable to VOC-Control Regions 1 and 

14 2 under section 80.41 of that title by eliminating the less 

15 stringent requirements applicable to gasoline designated for 

16 VOC-Control Region 2 and instead applying the more strin17 gent requirements applicable to gasoline designated for 

18 VOC-Control Region 1. 

19 (d) SAVINGS CLAUSE.—Nothing in this section is in20 tended to affect or prejudice either any legal claims or ac21 tions with respect to regulations promulgated by the Ad22 ministrator prior to enactment of this Act regarding emis23 sions of toxic air pollutants from motor vehicles or the ad24 justment of standards applicable to a specific refinery or 

25 importer made under such prior regulations and the Ad-
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1 ministrator may apply such adjustments to the standards 

2 applicable to such refinery or importer under clause (iii)(I) 

3 of section 211(k)(1)(B) of the Clean Air Act, except that— 

4 (1) the Administrator shall revise such adjust5 ments to be based only on calendar years 1999–2000, 

6 and 

7 (2) for adjustments based on toxic air pollutant 

8 emissions from reformulated gasoline significantly 

9 below the national annual average emissions of toxic 

10 air pollutants from all reformulated gasoline, the Ad11 ministrator may revise such adjustments to take ac12 count of the scope of any lawful and enforceable Fed13 eral or State prohibition on methyl tertiary butyl 

14 ether imposed after the effective date of the enactment 

15 of this paragraph, except that any such adjustment 

16 shall require such refiner or importer, to the greatest 

17 extent practicable, to maintain the reduction achieved 

18 during calendar year 1999–2000 in the average an19 nual aggregate emissions of toxic air pollutants from 

20 reformulated gasoline produced or distributed by the 

21 refinery or importer. Any such adjustment shall not 

22 be made at a level below the average percentage of re23 ductions of emissions of toxic air pollutants for refor24 mulated gasoline supplied to PADD I during cal25 endar years 1999–2000. 
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1 SEC. 9105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

2 Section 211 of the Clean Air Act (42 U.S.C. 7545) is 

3 amended by inserting after subsection (o) the following: 

4 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

5 AND EMISSIONS MODEL.—

6 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

7 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

8 years after the date of enactment of this para9 graph, the Administrator shall publish for public 

10 comment a draft analysis of the changes in emis11 sions of air pollutants and air quality due to the 

12 use of motor vehicle fuel and fuel additives re13 sulting from implementation of the amendments 

14 made by title IX of the Energy Policy Act of 

15 2003. 

16 ‘‘(B) FINAL ANALYSIS.—After providing a 

17 reasonable opportunity for comment but not 

18 later than 5 years after the date of enactment of 

19 this paragraph, the Administrator shall publish 

20 the analysis in final form. 

21 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

22 this subsection, as soon as the necessary data are 

23 available, the Administrator shall develop and final24 ize an emissions model that reasonably reflects the ef25 fects of gasoline characteristics or components on
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1 emissions from vehicles in the motor vehicle fleet dur2 ing calendar year 2005.’’. 

3 SEC. 9106. DATA COLLECTION. 

4 Section 205 of the Department of Energy Organization 

5 Act (42 U.S.C. 7135) is amended by adding at the end the 

6 following: 

7 ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 

8 improve the ability to evaluate the effectiveness of the Na9 tion’s renewable fuels mandate, the Administrator shall con10 duct and publish the results of a survey of renewable fuels 

11 demand in the motor vehicle fuels market in the United 

12 States monthly, and in a manner designed to protect the 

13 confidentiality of individual responses. In conducting the 

14 survey, the Administrator shall collect information both on 

15 a national and regional basis, including—

16 ‘‘(A) the quantity of renewable fuels produced; 

17 ‘‘(B) the quantity of renewable fuels blended; 

18 ‘‘(C) the quantity of renewable fuels imported; 

19 ‘‘(D) the quantity of renewable fuels demanded; 

20 ‘‘(E) market price data; and 

21 ‘‘(F) such other analyses or evaluations as the 

22 Administrator finds is necessary to achieve the pur23 poses of this section. 

24 ‘‘(2) The Administrator shall also collect or estimate 

25 information both on a national and regional basis, pursu-
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1 ant to subparagraphs (A) through (F) of paragraph (1), 

2 for the five years prior to implementation of this subsection. 

3 ‘‘(3) This subsection does not affect the authority of 

4 the Administrator to collect data under section 52 of the 

5 Federal Energy Administration Act of 1974 (15 U.S.C. 

6 790a).’’. 

7 SEC. 9107. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

8 STUDY. 

9 (a) STUDY.—

10 (1) IN GENERAL.—The Administrator of the En11 vironmental Protection Agency and the Secretary of 

12 Energy shall jointly conduct a study of Federal, 

13 State, and local requirements concerning motor vehi14 cle fuels, including—

15 (A) requirements relating to reformulated 

16 gasoline, volatility (measured in Reid vapor 

17 pressure), oxygenated fuel, and diesel fuel; and 

18 (B) other requirements that vary from State 

19 to State, region to region, or locality to locality. 

20 (2) REQUIRED ELEMENTS.—The study shall as21 sess—

22 (A) the effect of the variety of requirements 

23 described in paragraph (1) on the supply, qual24 ity, and price of motor vehicle fuels available to 

25 consumers in various States and localities; 
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1 (B) the effect of the requirements described 

2 in paragraph (1) on achievement of—

3 (i) national, regional, and local air 

4 quality standards and goals; and 

5 (ii) related environmental and public 

6 health protection standards and goals; 

7 (C) the effect of Federal, State, and local 

8 motor vehicle fuel regulations, including multiple 

9 motor vehicle fuel requirements, on—

10 (i) domestic refineries; 

11 (ii) the fuel distribution system; and 

12 (iii) industry investment in new ca13 pacity; 

14 (D) the effect of the requirements described 

15 in paragraph (1) on emissions from vehicles, re16 fineries, and fuel handling facilities; 

17 (E) the feasibility of developing national or 

18 regional motor vehicle fuel slates for the 48 con19 tiguous States that, while improving air quality 

20 at the national, regional and local levels con21 sistent with the attainment of national ambient 

22 air quality standards, could—

23 (i) enhance flexibility in the fuel dis24 tribution infrastructure and improve fuel 

25 fungibility; 
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1 (ii) reduce price volatility and costs to 

2 consumers and producers; 

3 (iii) provide increased liquidity to the 

4 gasoline market; and 

5 (iv) enhance fuel quality, consistency, 

6 and supply; 

7 (F) the feasibility of providing incentives, to 

8 promote cleaner burning motor vehicle fuel; and 

9 (G) the extent to which improvements in air 

10 quality and any increases or decreases in the 

11 price of motor fuel can be projected to result 

12 from the Environmental Protection Agency’s 

13 Tier II requirements for conventional gasoline 

14 and vehicle emission systems, the reformulated 

15 gasoline program, the renewable content require16 ments established by this subtitle, State pro17 grams regarding gasoline volatility, and any 

18 other requirements imposed by States or local19 ities affecting the composition of motor fuel. 

20 (b) REPORT.—

21 (1) IN GENERAL.—Not later than December 31, 

22 2006, the Administrator of the Environmental Protec23 tion Agency and the Secretary of Energy shall submit 

24 to Congress a report on the results of the study con25 ducted under subsection (a). 
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1 (2) RECOMMENDATIONS.—

2 (A) IN GENERAL.—The report shall contain 

3 recommendations for legislative and administra4 tive actions that may be taken—

5 (i) to improve air quality; 

6 (ii) to reduce costs to consumers and 

7 producers; and 

8 (iii) to increase supply liquidity. 

9 (B) REQUIRED CONSIDERATIONS.—The rec10 ommendations under subparagraph (A) shall 

11 take into account the need to provide advance 

12 notice of required modifications to refinery and 

13 fuel distribution systems in order to ensure an 

14 adequate supply of motor vehicle fuel in all 

15 States. 

16 (3) CONSULTATION.—In developing the report, 

17 the Administrator of the Environmental Protection 

18 Agency and the Secretary of Energy shall consult 

19 with—

20 (A) the Governors of the States; 

21 (B) automobile manufacturers; 

22 (C) motor vehicle fuel producers and dis23 tributors; and 

24 (D) the public.
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1 Subtitle B—MTBE Cleanup 

2 SEC. 9201. FUNDING FOR MTBE CONTAMINATION. 

3 Notwithstanding any other provision of law, there is 

4 authorized to be appropriated to the Administrator of the 

5 United States Environmental Protection Agency from the 

6 Leaking Underground Storage Tank Trust Fund not more 

7 than $850,000,000 to be used for taking such action limited 

8 to site assessment (including exposure assessment), correc9 tive action, inspection of underground storage tank systems, 

10 and groundwater monitoring as the Administrator deems 

11 necessary to protect human health, welfare, and the environ12 ment from underground storage tank releases of fuel con13 taining fuel oxygenates.

14 TITLE X—AUTOMOBILE 

15 EFFICIENCY 

16 SEC. 10001. AUTHORIZATION OF APPROPRIATIONS FOR IM17 PLEMENTATION AND ENFORCEMENT OF FUEL 

18 ECONOMY STANDARDS. 

19 In addition to any other funds authorized by law, 

20 there are authorized to be appropriated to the National 

21 Highway Traffic Safety Administration to implement and 

22 enforce average fuel economy standards $5,000,000 for fiscal 

23 years 2004 through 2006. 
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1 SEC. 10002. STUDY OF FEASIBILITY AND EFFECTS OF RE2 DUCING USE OF FUEL FOR AUTOMOBILES. 

3 (a) IN GENERAL.—Not later than 30 days after the 

4 date of the enactment of this Act, the Administrator of the 

5 National Highway Traffic Safety Administration shall 

6 study the feasibility and effects of reducing by model year 

7 2012, by a significant percentage, the use of fuel for auto8 mobiles. 

9 (b) SUBJECTS OF STUDY.—The study under this sec10 tion shall include—

11 (1) examination of, and recommendation of al12 ternatives to, the policy under current Federal law of 

13 establishing average fuel economy standards for auto14 mobiles and requiring each automobile manufacturer 

15 to comply with average fuel economy standards that 

16 apply to the automobiles it manufactures; 

17 (2) examination of how automobile manufactur18 ers could contribute toward achieving the reduction 

19 referred to in subsection (a); 

20 (3) examination of the potential of fuel cell tech21 nology in motor vehicles in order to determine the ex22 tent to which such technology may contribute to 

23 achieving the reduction referred to in subsection (a); 

24 and 

25 (4) examination of the effects of the reduction re26 ferred to in subsection (a) on—
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1 (A) gasoline supplies; 

2 (B) the automobile industry, including sales 

3 of automobiles manufactured in the United 

4 States; 

5 (C) motor vehicle safety; and 

6 (D) air quality. 

7 (c) REPORT.—The Administrator shall submit to the 

8 Congress a report on the findings, conclusion, and rec9 ommendations of the study under this section by not later 

10 than 1 year after the date of the enactment of this Act.

11 TITLE XI—PREVENTING THE 

12 MISUSE OF NUCLEAR MATE13 RIALS AND TECHNOLOGY 

14 SEC. 11001. PREVENTING THE MISUSE OF NUCLEAR MATE15 RIALS AND TECHNOLOGY. 

16 (a) AMENDMENT.—Chapter 14 of the Atomic Energy 

17 Act of 1954 (42 U.S.C. 2201 et seq.) is amended by adding 

18 at the end the following new section: 

19 ‘‘SEC. 170D. PREVENTING THE MISUSE OF NUCLEAR

20 MATERIALS AND TECHNOLOGY.—

21 ‘‘a. In order to successfully promote the development 

22 of nuclear energy as a safe and reliable source of electrical 

23 energy, it is the policy of the United States to prevent any 

24 nuclear materials, technology, components, substances, tech-
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1 nical information, or related goods or services from being 

2 misused or diverted from peaceful nuclear energy purposes. 

3 ‘‘b. In order to further advance the policy set forth in 

4 subsection a., notwithstanding any other provision of law, 

5 no Federal agency shall issue any license, approval, or au6 thorization for the export or reexport, or the transfer or re7 transfer, either directly or indirectly, to any country whose 

8 government has been identified by the Secretary of State 

9 as engaged in state sponsorship of terrorist activities (spe10 cifically including any country the government of which, 

11 as of September 11, 2001, had been determined by the Sec12 retary of State under section 620A(a) of the Foreign Assist13 ance Act of 1961, section 6(j)(1) of the Export Administra14 tion Act of 1979, or section 40(d) of the Arms Export Con15 trol Act to have repeatedly provided support for acts of 

16 international terrorism) of—

17 ‘‘(1) any special nuclear material or byproduct 

18 material; 

19 ‘‘(2) any nuclear production or utilization facili20 ties; or 

21 ‘‘(3) any components, technologies, substances, 

22 technical information, or related goods or services 

23 used (or which could be used) in a nuclear production 

24 or utilization facility. 
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1 ‘‘c. Any license, approval, or authorization described 

2 in subsection b. made prior to the date of enactment of this 

3 section is hereby revoked.’’. 

4 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

5 contents of such chapter 14 is amended by adding at the 

6 end the following item:

‘‘Sec. 170D. Preventing the misuse of nuclear materials and technology.’’.

7 TITLE XII—ADDITIONAL 

8 PROVISIONS 

9 SEC. 12001. TRANSMISSION TECHNOLOGIES. 

10 The Federal Energy Regulatory Commission shall take 

11 affirmative steps in the exercise of its authorities under the 

12 Federal Power Act to encourage the deployment of trans13 mission technologies that utilize real time monitoring and 

14 analytical software to increase and maximize the capacity 

15 and efficiency of transmission networks and to reduce line 

16 losses.

Union Calendar No. 42

108TH CONGRESS 

1ST SESSION H. R. 1644

[Report No. 108–65, Part I] 

A BILL

To enhance energy conservation and research and 

development, to provide for security and diversity in the energy supply for the American people, and for other purposes. 

APRIL 8, 2003 

Reported from the Committee on Energy and Commerce 

with an amendment 

APRIL 8, 2003

Referred to the Committee on the Judiciary for a period 

ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(k), rule X 

APRIL 8, 2003

Referral to the Committees on Science, Resources, Education and the Workforce, and Transportation and Infrastructure extended for a period ending not later 

than April 9, 2003

APRIL 9, 2003

Referred to the Committee on Government Reform for a 

period ending not later than April 9, 2003, for consideration of such provisions of the bill and amendment as fall within the jurisdiction of that committee pursuant to clause 1(h), rule X 

APRIL 9, 2003

The Committees on Science, Resources, Education and 

the Workforce, Transportation and Infrastructure, the Judiciary, and Government Reform discharged; referred to the Committee of the Whole House on the State of the Union and ordered to be printed