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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1644 Reported in House (RH)]

                                                  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

                             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.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Energy Policy Act 
of 2003''.
    (b) Table of Contents.--The table of contents for 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.
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.
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.
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.
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.

                       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.
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.
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.

                      TITLE I--ENERGY CONSERVATION

         Subtitle A--Federal Leadership in Energy Conservation

SEC. 1001. ENERGY AND WATER SAVING MEASURES IN CONGRESSIONAL BUILDINGS.

    (a) In General.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by adding at the end:

``SEC. 552. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
              BUILDINGS.

    ``(a) In General.--The Architect of the Capitol--
            ``(1) shall develop, update, and implement a cost-effective 
        energy conservation and management plan (referred to in this 
        section as the `plan') for all facilities administered by the 
        Congress (referred to in this section as `congressional 
        buildings') to meet the energy performance requirements for 
        Federal buildings established under section 543(a)(1); and
            ``(2) shall submit the plan to Congress, not later than 180 
        days after the date of enactment of this section.
    ``(b) Plan Requirements.--The plan shall include--
            ``(1) a description of the life cycle cost analysis used to 
        determine the cost-effectiveness of proposed energy efficiency 
        projects;
            ``(2) a schedule of energy surveys to ensure complete 
        surveys of all congressional buildings every 5 years to 
        determine the cost and payback period of energy and water 
        conservation measures;
            ``(3) a strategy for installation of life cycle cost-
        effective energy and water conservation measures;
            ``(4) the results of a study of the costs and benefits of 
        installation of submetering in congressional buildings; and
            ``(5) information packages and `how-to' guides for each 
        Member and employing authority of Congress that detail simple, 
        cost-effective methods to save energy and taxpayer dollars in 
        the workplace.
    ``(c) Annual Report.--The Architect shall submit to Congress 
annually a report on congressional energy management and conservation 
programs required under this section that describes in detail--
            ``(1) energy expenditures and savings estimates for each 
        facility;
            ``(2) energy management and conservation projects; and
            ``(3) future priorities to ensure compliance with this 
        section.''.
    (b) Table of Contents Amendment.--The table of contents of the 
National Energy Conservation Policy Act is amended by adding at the end 
of the items relating to part 3 of title V the following new item:

``Sec. 552. Energy and water savings measures in congressional 
                            buildings.''.
    (c) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (40 U.S.C. 166i), is repealed.
    (d) Energy Infrastructure.--The Architect of the Capitol, building 
on the Master Plan Study completed in July 2000, shall commission a 
study to evaluate the energy infrastructure of the Capital Complex to 
determine how the infrastructure could be augmented to become more 
energy efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility service 
in the event of power fluctuations, shortages, or outages.
    (e) Authorization.--There are authorized to be appropriated to the 
Architect of the Capitol to carry out subsection (d), not more than 
$2,000,000 for fiscal years after the enactment of this Act.

SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Reduction Goals.--
            (1) Amendment.--Section 543(a)(1) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by 
        striking ``its Federal buildings so that'' and all that follows 
        through the end and inserting ``the Federal buildings of the 
        agency (including each industrial or laboratory facility) so 
        that the energy consumption per gross square foot of the 
        Federal buildings of the agency in fiscal years 2004 through 
        2013 is reduced, as compared with the energy consumption per 
        gross square foot of the Federal buildings of the agency in 
        fiscal year 2001, by 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.''.
            (2) Reporting baseline.--The energy reduction goals and 
        baseline established in paragraph (1) of section 543(a) of the 
        National Energy Conservation Policy Act, as amended by 
        paragraph (1) of this subsection, supersede all previous goals 
        and baselines under such paragraph, and related reporting 
        requirements.
    (b) Review and Revision of Energy Performance Requirement.--Section 
543(a) of the National Energy Conservation Policy Act (42 U.S.C. 
8253(a)) is further amended by adding at the end the following:
    ``(3) Not later than December 31, 2012, the Secretary shall review 
the results of the implementation of the energy performance requirement 
established under paragraph (1) and submit to Congress recommendations 
concerning energy performance requirements for fiscal years 2014 
through 2023.''.
    (c) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking 
``An agency may exclude'' and all that follows through the end and 
inserting ``(A) An agency may exclude, from the energy performance 
requirement for a fiscal year established under subsection (a) and the 
energy management requirement established under subsection (b), any 
Federal building or collection of Federal buildings, if the head of the 
agency finds that--
            ``(i) compliance with those requirements would be 
        impracticable;
            ``(ii) the agency has completed and submitted all federally 
        required energy management reports;
            ``(iii) the agency has achieved compliance with the energy 
        efficiency requirements of this Act, the Energy Policy Act of 
        1992, Executive Orders, and other Federal law; and
            ``(iv) the agency has implemented all practicable, life 
        cycle cost-effective projects with respect to the Federal 
        building or collection of Federal buildings to be excluded.
    ``(B) A finding of impracticability under subparagraph (A)(i) shall 
be based on--
            ``(i) the energy intensiveness of activities carried out in 
        the Federal building or collection of Federal buildings; or
            ``(ii) the fact that the Federal building or collection of 
        Federal buildings is used in the performance of a national 
        security function.''.
    (d) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
            (1) by striking ``impracticability standards'' and 
        inserting ``standards for exclusion''; and
            (2) by striking ``a finding of impracticability'' and 
        inserting ``the exclusion''.
    (e) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
    ``(3) Not later than 180 days after the date of enactment of this 
paragraph, the Secretary shall issue guidelines that establish criteria 
for exclusions under paragraph (1).''.
    (f) Retention of Energy Savings.--Section 546 of the National 
Energy Conservation Policy Act (42 U.S.C. 8256) is amended by adding at 
the end the following new subsection:
    ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency or unconventional and 
renewable energy resources projects.''.
    (g) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
            (1) in the subsection heading, by inserting ``The President 
        and'' before ``Congress''; and
            (2) by inserting ``President and'' before ``Congress''.
    (h) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

    Section 543 of the National Energy Conservation Policy Act (42 
U.S.C. 8253) is further amended by adding at the end the following:
    ``(e) Metering of Energy Use.--
            ``(1) Deadline.--By October 1, 2010, in accordance with 
        guidelines established by the Secretary under paragraph (2), 
        all Federal buildings shall, for the purposes of efficient use 
        of energy and reduction in the cost of electricity used in such 
        buildings, be metered or submetered. Each agency shall use, to 
        the maximum extent practicable, advanced meters or advanced 
        metering devices that provide data at least daily and that 
        measure at least hourly consumption of electricity in the 
        Federal buildings of the agency. Such data shall be 
        incorporated into existing Federal energy tracking systems and 
        made available to Federal facility energy managers.
            ``(2) Guidelines.--
                    ``(A) In general.--Not later than 180 days after 
                the date of enactment of this subsection, the 
                Secretary, in consultation with the Department of 
                Defense, the General Services Administration, 
                representatives from the metering industry, utility 
                industry, energy services industry, energy efficiency 
                industry, national laboratories, universities, and 
                Federal facility energy managers, shall establish 
                guidelines for agencies to carry out paragraph (1).
                    ``(B) Requirements for guidelines.--The guidelines 
                shall--
                            ``(i) take into consideration--
                                    ``(I) the cost of metering and 
                                submetering and the reduced cost of 
                                operation and maintenance expected to 
                                result from metering and submetering;
                                    ``(II) the extent to which metering 
                                and submetering are expected to result 
                                in increased potential for energy 
                                management, increased potential for 
                                energy savings and energy efficiency 
                                improvement, and cost and energy 
                                savings due to utility contract 
                                aggregation; and
                                    ``(III) the measurement and 
                                verification protocols of the 
                                Department of Energy;
                            ``(ii) include recommendations concerning 
                        the amount of funds and the number of trained 
                        personnel necessary to gather and use the 
                        metering information to track and reduce energy 
                        use;
                            ``(iii) establish priorities for types and 
                        locations of buildings to be metered and 
                        submetered based on cost-effectiveness and a 
                        schedule of one or more dates, not later than 1 
                        year after the date of issuance of the 
                        guidelines, on which the requirements specified 
                        in paragraph (1) shall take effect; and
                            ``(iv) establish exclusions from the 
                        requirements specified in paragraph (1) based 
                        on the de minimis quantity of energy use of a 
                        Federal building, industrial process, or 
                        structure.
            ``(3) Plan.--No later than 6 months after the date 
        guidelines are established under paragraph (2), in a report 
        submitted by the agency under section 548(a), each agency shall 
        submit to the Secretary a plan describing how the agency will 
        implement the requirements of paragraph (1), including (A) how 
        the agency will designate personnel primarily responsible for 
        achieving the requirements and (B) demonstration by the agency, 
        complete with documentation, of any finding that advanced 
        meters or advanced metering devices, as defined in paragraph 
        (1), are not practicable.''.

SEC. 1004. FEDERAL BUILDING PERFORMANCE STANDARDS.

    Section 305(a) of the Energy Conservation and Production Act (42 
U.S.C. 6834(a)) is amended--
            (1) in paragraph (2)(A), by striking ``CABO Model Energy 
        Code, 1992'' and inserting ``the 2000 International Energy 
        Conservation Code''; and
            (2) by adding at the end the following:
    ``(3) Revised federal building energy efficiency performance 
standards.--
            ``(A) In general.--Not later than 1 year after the date of 
        enactment of this paragraph, the Secretary of Energy shall 
        establish, by rule, revised Federal building energy efficiency 
        performance standards that require that, if cost-effective, for 
        new Federal buildings--
                    ``(i) such buildings be designed so as to achieve 
                energy consumption levels at least 30 percent below 
                those of the most recent ASHRAE Standard 90.1 or the 
                most recent version of the International Energy 
                Conservation Code, as appropriate; and
                    ``(ii) sustainable design principles are applied to 
                the siting, design, and construction of all new and 
                replacement buildings.
            ``(B) Additional revisions.--Not later than 1 year after 
        the date of approval of amendments to ASHRAE Standard 90.1 or 
        the 2000 International Energy Conservation Code, the Secretary 
        of Energy shall determine, based on the cost-effectiveness of 
        the requirements under the amendments, whether the revised 
        standards established under this paragraph should be updated to 
        reflect the amendments.
            ``(C) Statement on compliance of new buildings.--In the 
        budget request of the Federal agency for each fiscal year and 
        each report submitted by the Federal agency under section 
        548(a) of the National Energy Conservation Policy Act (42 
        U.S.C. 8258(a)), the head of each Federal agency shall 
        include--
                    ``(i) a list of all new Federal buildings owned, 
                operated, or controlled by the Federal agency; and
                    ``(ii) a statement concerning whether the Federal 
                buildings meet or exceed the revised standards 
                established under this paragraph.''.

SEC. 1005. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    (a) Requirements.--Part 3 of title V of the National Energy 
Conservation Policy Act is amended by adding at the end the following:

``SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

    ``(a) Definitions.--In this section:
            ``(1) Energy star product.--The term `Energy Star product' 
        means a product that is rated for energy efficiency under an 
        Energy Star program.
            ``(2) Energy star program.--The term `Energy Star program' 
        means the program established by section 324A of the Energy 
        Policy and Conservation Act.
            ``(3) Executive agency.--The term `executive agency' has 
        the meaning given the term in section 4 of the Office of 
        Federal Procurement Policy Act (41 U.S.C. 403).
            ``(4) FEMP designated product.--The term `FEMP designated 
        product' means a product that is designated under the Federal 
        Energy Management Program of the Department of Energy as being 
        among the highest 25 percent of equivalent products for energy 
        efficiency.
    ``(b) Procurement of Energy Efficient Products.--
            ``(1) Requirement.--To meet the requirements of an 
        executive agency for an energy consuming product, the head of 
        the executive agency shall, except as provided in paragraph 
        (2), procure--
                    ``(A) an Energy Star product; or
                    ``(B) a FEMP designated product.
            ``(2) Exceptions.--The head of an executive agency is not 
        required to procure an Energy Star product or FEMP designated 
        product under paragraph (1) if the head of the executive agency 
        finds in writing that--
                    ``(A) an Energy Star product or FEMP designated 
                product is not cost-effective over the life of the 
                product taking energy cost savings into account; or
                    ``(B) no Energy Star product or FEMP designated 
                product is reasonably available that meets the 
                functional requirements of the executive agency.
            ``(3) Procurement planning.--The head of an executive 
        agency shall incorporate into the specifications for all 
        procurements involving energy consuming products and systems, 
        including guide specifications, project specifications, and 
        construction, renovation, and services contracts that include 
        provision of energy consuming products and systems, and into 
        the factors for the evaluation of offers received for the 
        procurement, criteria for energy efficiency that are consistent 
        with the criteria used for rating Energy Star products and for 
        rating FEMP designated products.
    ``(c) Listing of Energy Efficient Products in Federal Catalogs.--
Energy Star products and FEMP designated products shall be clearly 
identified and prominently displayed in any inventory or listing of 
products by the General Services Administration or the Defense 
Logistics Agency. The General Services Administration or the Defense 
Logistics Agency shall supply only Energy Star products or FEMP 
designated products for all product categories covered by the Energy 
Star program or the Federal Energy Management Program, except in cases 
where the agency ordering a product specifies in writing that no Energy 
Star product or FEMP designated product is available to meet the 
buyer's functional requirements, or that no Energy Star product or FEMP 
designated product is cost-effective for the intended application over 
the life of the product, taking energy cost savings into account.
    ``(d) Designation of Electric Motors.--In the case of electric 
motors of 1 to 500 horsepower, agencies shall select only premium 
efficient motors that meet a standard designated by the Secretary. The 
Secretary shall designate such a standard within 120 days after the 
date of the enactment of this section, after considering the 
recommendations of associated electric motor manufacturers and energy 
efficiency groups.
    ``(e) Regulations.--Not later than 180 days after the date of the 
enactment of this section, the Secretary shall issue guidelines to 
carry out this section.''.
    (b) Conforming Amendment.--The table of contents in section 101(b) 
of the National Energy Conservation Policy Act (42 U.S.C. 8201 note), 
as amended by section 1001(b) of this Act, is further amended by 
inserting after the item relating to section 552 the following:

``Sec. 553. Federal procurement of energy efficient products.''.

SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS.

    (a) Permanent Extension.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
    (b) Replacement Facilities.--Section 801(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the 
end the following new paragraph:
            ``(3)(A) In the case of an energy savings contract or 
        energy savings performance contract providing for energy 
        savings through the construction and operation of one or more 
        buildings or facilities to replace one or more existing 
        buildings or facilities, benefits ancillary to the purpose of 
        such contract under paragraph (1) may include savings resulting 
        from reduced costs of operation and maintenance at such 
        replacement buildings or facilities when compared with costs of 
        operation and maintenance at the buildings or facilities being 
        replaced, established through a methodology set forth in the 
        contract.
            ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
        payments by an agency under an energy savings contract or 
        energy savings performance contract referred to in subparagraph 
        (A) may take into account (through the procedures developed 
        pursuant to this section) savings resulting from reduced costs 
        of operation and maintenance as described in that 
        subparagraph.''.
    (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
            ``(2) The term `energy savings' means--
                    ``(A) a reduction in the cost of energy or water, 
                from a base cost established through a methodology set 
                forth in the contract, used in an existing federally 
                owned building or buildings or other federally owned 
                facilities as a result of--
                            ``(i) the lease or purchase of operating 
                        equipment, improvements, altered operation and 
                        maintenance, or technical services;
                            ``(ii) the increased efficient use of 
                        existing energy sources by cogeneration or heat 
                        recovery, excluding any cogeneration process 
                        for other than a federally owned building or 
                        buildings or other federally owned facilities; 
                        or
                            ``(iii) the increased efficient use of 
                        existing water sources; or
                    ``(B) in the case of a replacement building or 
                facility described in section 801(a)(3), a reduction in 
                the cost of energy, from a base cost established 
                through a methodology set forth in the contract, that 
                would otherwise be utilized in one or more existing 
                federally owned buildings or other federally owned 
                facilities by reason of the construction and operation 
                of the replacement building or facility.''.
    (d) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
            ``(3) The terms `energy savings contract' and `energy 
        savings performance contract' mean a contract which provides 
        for--
                    ``(A) the performance of services for the design, 
                acquisition, installation, testing, operation, and, 
                where appropriate, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                    ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or facilities.
        Such contracts shall, with respect to an agency facility that 
        is a public building as such term is defined in section 13(1) 
        of the Public Buildings Act of 1959 (40 U.S.C. 3301), be in 
        compliance with the prospectus requirements and procedures of 
        section 7 of the Public Buildings Act of 1959 (40 U.S.C. 
        3307).''.
    (e) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
            ``(4) The term `energy or water conservation measure' 
        means--
                    ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                    ``(B) a water conservation measure that improves 
                water efficiency, is life cycle cost-effective, and 
                involves water conservation, water recycling or reuse, 
                more efficient treatment of wastewater or stormwater, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities, or other related activities, not 
                at a Federal hydroelectric facility.''.
    (f) Review.--Within 180 days after the date of the enactment of 
this section, the Secretary of Energy shall complete a review of the 
Energy Savings Performance Contract program to identify statutory, 
regulatory, and administrative obstacles that prevent Federal agencies 
from fully utilizing the program. In addition, this review shall 
identify all areas for increasing program flexibility and 
effectiveness, including audit and measurement verification 
requirements, accounting for energy use in determining savings, 
contracting requirements, and energy efficiency services covered. The 
Secretary shall report these findings to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate, and shall implement identified 
administrative and regulatory changes to increase program flexibility 
and effectiveness to the extent that such changes are consistent with 
statutory authority.

SEC. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUSTRIAL ENERGY INTENSITY.

    (a) Voluntary Agreements.--The Secretary of Energy shall enter into 
voluntary agreements with one or more persons in industrial sectors 
that consume significant amounts of primary energy per unit of physical 
output to reduce the energy intensity of their production activities.
    (b) Goal.--Voluntary agreements under this section shall have a 
goal of reducing energy intensity by not less than 2.5 percent each 
year from 2004 through 2014.
    (c) Recognition.--The Secretary of Energy, in cooperation with the 
Administrator of the Environmental Protection Agency and other 
appropriate Federal agencies, shall develop mechanisms to recognize and 
publicize the achievements of participants in voluntary agreements 
under this section.
    (d) Definition.--In this section, the term ``energy intensity'' 
means the primary energy consumed per unit of physical output in an 
industrial process.
    (e) Technical Assistance.--An entity that enters into an agreement 
under this section and continues to make a good faith effort to achieve 
the energy efficiency goals specified in the agreement shall be 
eligible to receive from the Secretary a grant or technical assistance 
as appropriate to assist in the achievement of those goals.
    (f) Report.--Not later than June 30, 2010 and June 30, 2014, the 
Secretary shall submit to Congress a report that evaluates the success 
of the voluntary agreements, with independent verification of a sample 
of the energy savings estimates provided by participating firms.

SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND REDUCTION PROGRAMS.

    Section 546(c) of the National Energy Conservation Policy Act (42 
U.S.C. 8256(c)) is amended by adding at the end of the following new 
paragraph:
    ``(6) Federal agencies are encouraged to participate in State or 
regional demand side reduction programs. The availability of such 
programs, including measures employing onsite generation, and the 
savings resulting from such participation, should be included in the 
evaluation of energy options for Federal facilities.''.

SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED.

    (a) Establishment.--The Secretary of Energy, in consultation with 
the Administrator of the General Services Administration, shall 
establish an Advanced Building Efficiency Testbed program for the 
development, testing, and demonstration of advanced engineering 
systems, components, and materials to enable innovations in building 
technologies. The program shall evaluate efficiency concepts for 
government and industry buildings, and demonstrate the ability of next 
generation buildings to support individual and organizational 
productivity and health as well as flexibility and technological change 
to improve environmental sustainability. Such program shall complement 
and not duplicate existing national programs.
    (b) Participants.--The program established under subsection (a) 
shall be led by a university with the ability to combine the expertise 
from numerous academic fields including, at a minimum, intelligent 
workplaces and advanced building systems and engineering, electrical 
and computer engineering, computer science, architecture, urban design, 
and environmental and mechanical engineering. Such university shall 
partner with other universities and entities who have established 
programs and the capability of advancing innovative building efficiency 
technologies.
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out this section 
$6,000,000 for each of the fiscal years 2004 through 2006, to remain 
available until expended. For any fiscal year in which funds are 
expended under this section, the Secretary shall provide one-third of 
the total amount to the lead university described in subsection (b), 
and provide the remaining two-thirds to the other participants referred 
to in subsection (b) on an equal basis.

SEC. 1010. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
              FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
              CONCRETE.

    (a) Amendment.--Subtitle F of the Solid Waste Disposal Act (42 
U.S.C. 6961 et seq.) is amended by adding at the end the following new 
section:

  ``increased use of recovered mineral component in federally funded 
          projects involving procurement of cement or concrete

    ``Sec. 6005. (a) Definitions.--In this section:
            ``(1) Agency head.--The term `agency head' means--
                    ``(A) the Secretary of Transportation; and
                    ``(B) the head of each other Federal agency that on 
                a regular basis procures, or provides Federal funds to 
                pay or assist in paying the cost of procuring, material 
                for cement or concrete projects.
            ``(2) Cement or concrete project.--The term `cement or 
        concrete project' means a project for the construction or 
        maintenance of a highway or other transportation facility or a 
        Federal, State, or local government building or other public 
        facility that--
                    ``(A) involves the procurement of cement or 
                concrete; and
                    ``(B) is carried out in whole or in part using 
                Federal funds.
            ``(3) Recovered mineral component.--The term `recovered 
        mineral component' means--
                    ``(A) ground granulated blast furnace slag;
                    ``(B) coal combustion fly ash; and
                    ``(C) any other waste material or byproduct 
                recovered or diverted from solid waste that the 
                Administrator, in consultation with an agency head, 
                determines should be treated as recovered mineral 
                component under this section for use in cement or 
                concrete projects paid for, in whole or in part, by the 
                agency head.
    ``(b) Implementation of Requirements.--
            ``(1) In general.--Not later than 1 year after the date of 
        enactment of this section, the Administrator and each agency 
        head shall take such actions as are necessary to implement 
        fully all procurement requirements and incentives in effect as 
        of the date of enactment of this section (including guidelines 
        under section 6002) that provide for the use of cement and 
        concrete incorporating recovered mineral component in cement or 
        concrete projects.
            ``(2) Priority.--In carrying out paragraph (1) an agency 
        head shall give priority to achieving greater use of recovered 
        mineral component in cement or concrete projects for which 
        recovered mineral components historically have not been used or 
        have been used only minimally.
            ``(3) Conformance.--The Administrator and each agency head 
        shall carry out this subsection in accordance with section 
        6002.
    ``(c) Full Implementation Study.--
            ``(1) In general.--The Administrator, in cooperation with 
        the Secretary of Transportation and the Secretary of Energy, 
        shall conduct a study to determine the extent to which current 
        procurement requirements, when fully implemented in accordance 
        with subsection (b), may realize energy savings and 
        environmental benefits attainable with substitution of 
        recovered mineral component in cement used in cement or 
        concrete projects.
            ``(2) Matters to be addressed.--The study shall--
                    ``(A) quantify the extent to which recovered 
                mineral components are being substituted for Portland 
                cement, particularly as a result of current procurement 
                requirements, and the energy savings and environmental 
                benefits associated with that substitution;
                    ``(B) identify all barriers in procurement 
                requirements to fuller realization of energy savings 
                and environmental benefits, including barriers 
                resulting from exceptions from current law; and
                    ``(C)(i) identify potential mechanisms to achieve 
                greater substitution of recovered mineral component in 
                types of cement or concrete projects for which 
                recovered mineral components historically have not been 
                used or have been used only minimally;
                    ``(ii) evaluate the feasibility of establishing 
                guidelines or standards for optimized substitution 
                rates of recovered mineral component in those cement or 
                concrete projects; and
                    ``(iii) identify any potential environmental or 
                economic effects that may result from greater 
                substitution of recovered mineral component in those 
                cement or concrete projects.
            ``(3) Report.--Not later than 30 months after the date of 
        enactment of this section, the Administrator shall submit to 
        the Committee on Appropriations and Committee on Environment 
        and Public Works of the Senate and the Committee on 
        Appropriations, Committee on Energy and Commerce, and Committee 
        on Transportation and Infrastructure of the House of 
        Representatives a report on the study.
    ``(d) Additional Procurement Requirements.--Unless the study 
conducted under subsection (c) identifies any effects or other problems 
described in subsection (c)(2)(C)(iii) that warrant further review or 
delay, the Administrator and each agency head shall, within 1 year of 
the release of the report in accordance with subsection (c)(3), take 
additional actions authorized under this Act to establish procurement 
requirements and incentives that provide for the use of cement and 
concrete with increased substitution of recovered mineral component in 
the construction and maintenance of cement or concrete projects, so as 
to--
            ``(1) realize more fully the energy savings and 
        environmental benefits associated with increased substitution; 
        and
            ``(2) eliminate barriers identified under subsection (c).
    ``(e) Effect of Section.--Nothing in this section affects the 
requirements of section 6002 (including the guidelines and 
specifications for implementing those requirements).''.
    (b) Table of Contents Amendment.--The table of contents of the 
Solid Waste Disposal Act is amended by adding after the item relating 
to section 6004 the following new item:

``Sec. 6005. 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.

    (a) Low-Income Home Energy Assistance Program.--Section 2602(b) of 
the Low-Income Home Energy Assistance Act of 1981 (42 U.S.C. 8621(b)) 
is amended by striking ``each of fiscal years 2002 through 2004'' and 
inserting ``each of fiscal years 2002 and 2003, and $3,400,000,000 for 
each of fiscal years 2004 through 2006''.
    (b) Weatherization.--Section 422 of the Energy Conservation and 
Production Act (42 U.S.C. 6872) is amended by striking ``for fiscal 
years 1999 through 2003 such sums as may be necessary'' and inserting 
``$325,000,000 for fiscal year 2004, $400,000,000 for fiscal year 2005, 
and $500,000,000 for fiscal year 2006''.
    (c) Report to Congress.--Not later than 1 year after the date of 
enactment of this Act, the Secretary of Health and Human Services shall 
transmit to the Congress a report on how the Low-Income Home Energy 
Assistance Program could be used more effectively to prevent loss of 
life from extreme temperatures. In preparing such report, the Secretary 
shall consult with appropriate officials in all 50 States and the 
District of Columbia.

SEC. 1022. STATE ENERGY PROGRAMS.

    (a) State Energy Conservation Plans.--Section 362 of the Energy 
Policy and Conservation Act (42 U.S.C. 6322) is amended by inserting at 
the end the following new subsection:
    ``(g) The Secretary shall, at least once every 3 years, invite the 
Governor of each State to review and, if necessary, revise the energy 
conservation plan of such State submitted under subsection (b) or (e). 
Such reviews should consider the energy conservation plans of other 
States within the region, and identify opportunities and actions 
carried out in pursuit of common energy conservation goals.''.
    (b) State Energy Efficiency Goals.--Section 364 of the Energy 
Policy and Conservation Act (42 U.S.C. 6324) is amended to read as 
follows:

                    ``state energy efficiency goals

    ``Sec. 364. Each State energy conservation plan with respect to 
which assistance is made available under this part on or after the date 
of enactment of the Energy Policy Act of 2003 shall contain a goal, 
consisting of an improvement of 25 percent or more in the efficiency of 
use of energy in the State concerned in calendar year 2010 as compared 
to calendar year 1990, and may contain interim goals.''.
    (c) Authorization of Appropriations.--Section 365(f) of the Energy 
Policy and Conservation Act (42 U.S.C. 6325(f)) is amended by striking 
``for fiscal years 1999 through 2003 such sums as may be necessary'' 
and inserting ``$100,000,000 for each of the fiscal years 2004 and 2005 
and $125,000,000 for fiscal year 2006''.

SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

    (a) Definitions.--In this section:
            (1) Eligible state.--The term ``eligible State'' means a 
        State that meets the requirements of subsection (b).
            (2) Energy star program.--The term ``Energy Star program'' 
        means the program established by section 324A of the Energy 
        Policy and Conservation Act.
            (3) Residential energy star product.--The term 
        ``residential Energy Star product'' means a product for a 
        residence that is rated for energy efficiency under the Energy 
        Star program.
            (4) State energy office.--The term ``State energy office'' 
        means the State agency responsible for developing State energy 
        conservation plans under section 362 of the Energy Policy and 
        Conservation Act (42 U.S.C. 6322).
            (5) State program.--The term ``State program'' means a 
        State energy efficient appliance rebate program described in 
        subsection (b)(1).
    (b) Eligible States.--A State shall be eligible to receive an 
allocation under subsection (c) if the State--
            (1) establishes (or has established) a State energy 
        efficient appliance rebate program to provide rebates to 
        residential consumers for the purchase of residential Energy 
        Star products to replace used appliances of the same type;
            (2) submits an application for the allocation at such time, 
        in such form, and containing such information as the Secretary 
        may require; and
            (3) provides assurances satisfactory to the Secretary that 
        the State will use the allocation to supplement, but not 
        supplant, funds made available to carry out the State program.
    (c) Amount of Allocations.--
            (1) In general.--Subject to paragraph (2), for each fiscal 
        year, the Secretary shall allocate to the State energy office 
of each eligible State to carry out subsection (d) an amount equal to 
the product obtained by multiplying the amount made available under 
subsection (f) for the fiscal year by the ratio that the population of 
the State in the most recent calendar year for which data are available 
bears to the total population of all eligible States in that calendar 
year.
            (2) Minimum allocations.--For each fiscal year, the amounts 
        allocated under this subsection shall be adjusted 
        proportionately so that no eligible State is allocated a sum 
        that is less than an amount determined by the Secretary.
    (d) Use of Allocated Funds.--The allocation to a State energy 
office under subsection (c) may be used to pay up to 50 percent of the 
cost of establishing and carrying out a State program.
    (e) Issuance of Rebates.--Rebates may be provided to residential 
consumers that meet the requirements of the State program. The amount 
of a rebate shall be determined by the State energy office, taking into 
consideration--
            (1) the amount of the allocation to the State energy office 
        under subsection (c);
            (2) the amount of any Federal or State tax incentive 
        available for the purchase of the residential Energy Star 
        product; and
            (3) the difference between the cost of the residential 
        Energy Star product and the cost of an appliance that is not a 
        residential Energy Star product, but is of the same type as, 
        and is the nearest capacity, performance, and other relevant 
        characteristics (as determined by the State energy office) to 
        the residential Energy Star product.
    (f) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section $50,000,000 for each of the 
fiscal years 2004 through 2008.

SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS.

    (a) Grants.--The Secretary of Energy may make grants to the State 
agency responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or, if no such agency exists, a State agency designated by the Governor 
of the State, to assist units of local government in the State in 
improving the energy efficiency of public buildings and facilities--
            (1) through construction of new energy efficient public 
        buildings that use at least 30 percent less energy than a 
        comparable public building constructed in compliance with 
        standards prescribed in chapter 8 of the 2000 International 
        Energy Conservation Code, or a similar State code intended to 
        achieve substantially equivalent efficiency levels; or
            (2) through renovation of existing public buildings to 
        achieve reductions in energy use of at least 30 percent as 
        compared to the baseline energy use in such buildings prior to 
        renovation, assuming a 3-year, weather-normalized average for 
        calculating such baseline.
    (b) Administration.--State energy offices receiving grants under 
this section shall--
            (1) maintain such records and evidence of compliance as the 
        Secretary may require; and
            (2) develop and distribute information and materials and 
        conduct programs to provide technical services and assistance 
        to encourage planning, financing, and design of energy 
        efficient public buildings by units of local government.
    (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy such sums as may be necessary for each of fiscal years 2004 
through 2013. Not more than 30 percent of appropriated funds shall be 
used for administration.

SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

    (a) Grants.--The Secretary of Energy is authorized to make grants 
to units of local government, private, non-profit community development 
organizations, and Indian tribe economic development entities to 
improve energy efficiency, identify and develop alternative renewable 
and distributed energy supplies, and increase energy conservation in 
low income rural and urban communities.
    (b) Purpose of Grants.--The Secretary may make grants on a 
competitive basis for--
            (1) investments that develop alternative renewable and 
        distributed energy supplies;
            (2) energy efficiency projects and energy conservation 
        programs;
            (3) studies and other activities that improve energy 
        efficiency in low income rural and urban communities;
            (4) planning and development assistance for increasing the 
        energy efficiency of buildings and facilities; and
            (5) technical and financial assistance to local government 
        and private entities on developing new renewable and 
        distributed sources of power or combined heat and power 
        generation.
    (c) Definition.--For purposes of this section, the term ``Indian 
tribe'' means any Indian tribe, band, nation, or other organized group 
or community, including any Alaskan Native village or regional or 
village corporation as defined in or established pursuant to the Alaska 
Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 
recognized as eligible for the special programs and services provided 
by the United States to Indians because of their status as Indians.
    (d) Authorization of Appropriations.--For the purposes of this 
section there are authorized to be appropriated to the Secretary of 
Energy $20,000,000 for fiscal year 2004 and each fiscal year thereafter 
through fiscal year 2006.

                 Subtitle C--Energy Efficient Products

SEC. 1041. ENERGY STAR PROGRAM.

    (a) Amendment.--The Energy Policy and Conservation Act (42 U.S.C. 
6201 and following) is amended by inserting the following after section 
324:

``SEC. 324A. ENERGY STAR PROGRAM.

    ``There is established at the Department of Energy and the 
Environmental Protection Agency a program to identify and promote 
energy-efficient products and buildings in order to reduce energy 
consumption, improve energy security, and reduce pollution through 
labeling of and other forms of communication about products and 
buildings that meet the highest energy efficiency standards. 
Responsibilities under the program shall be divided between the 
Department of Energy and the Environmental Protection Agency consistent 
with the terms of agreements between the two agencies. The 
Administrator and the Secretary shall--
            ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
            ``(2) work to enhance public awareness of the Energy Star 
        label, including special outreach to small businesses;
            ``(3) preserve the integrity of the Energy Star label; and
            ``(4) solicit the comments of interested parties in 
        establishing a new Energy Star product category or in revising 
        a product category, and upon adoption of a new or revised 
        product category provide an explanation of the decision that 
        responds to significant public comments.''.
    (b) Table of Contents Amendment.--The table of contents of the 
Energy Policy and Conservation Act is amended by inserting after the 
item relating to section 324 the following new item:

``Sec. 324A. Energy Star program.''.

SEC. 1042. CONSUMER EDUCATION ON ENERGY EFFICIENCY BENEFITS OF AIR 
              CONDITIONING, HEATING, AND VENTILATION MAINTENANCE.

    Section 337 of the Energy Policy and Conservation Act (42 U.S.C. 
6307) is amended by adding at the end the following:
    ``(c) HVAC Maintenance.--(1) For the purpose of ensuring that 
installed air conditioning and heating systems operate at their maximum 
rated efficiency levels, the Secretary shall, within 180 days of the 
date of enactment of this subsection, carry out a program to educate 
homeowners and small business owners concerning the energy savings 
resulting from properly conducted maintenance of air conditioning, 
heating, and ventilating systems.
    ``(2) The Secretary shall carry out the program in cooperation with 
the Administrator of the Environmental Protection Agency and such other 
entities as the Secretary considers appropriate, including industry 
trade associations, industry members, and energy efficiency 
organizations.
    ``(d) Small Business Education and Assistance.--The Administrator 
of the Small Business Administration, in consultation with the 
Secretary of Energy and the Administrator of the Environmental 
Protection Agency, shall develop and coordinate a Government-wide 
program, building on the existing Energy Star for Small Business 
Program, to assist small business to become more energy efficient, 
understand the cost savings obtainable through efficiencies, and 
identify financing options for energy efficiency upgrades. The 
Secretary and the Administrator shall make the program information 
available directly to small businesses and through other Federal 
agencies, including the Federal Emergency Management Agency, and the 
Department of Agriculture.''.

SEC. 1043. ADDITIONAL DEFINITIONS.

    Section 321 of the Energy Policy and Conservation Act (42 U.S.C. 
6291) is amended by adding at the end the following:
            ``(32) The term `battery charger' means a device that 
        charges batteries for consumer products.
            ``(33) The term `commercial refrigerator, freezer and 
        refrigerator-freezer' means a refrigerator, freezer or 
        refrigerator-freezer that--
                    ``(A) is not a consumer product regulated under 
                this Act; and
                    ``(B) incorporates most components involved in the 
                vapor-compression cycle and the refrigerated 
                compartment in a single package.
            ``(34) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into either DC current or lower-voltage AC current to 
        operate a consumer product.
            ``(35) The term `illuminated exit sign' means a sign that--
                    ``(A) is designed to be permanently fixed in place 
                to identify an exit; and
                    ``(B) consists of--
                            ``(i) an electrically powered integral 
                        light source that illuminates the legend `EXIT' 
                        and any directional indicators; and
                            ``(ii) provides contrast between the 
                        legend, any directional indicators, and the 
                        background.
            ``(36)(A) Except as provided in subparagraph (B), the term 
        `low-voltage dry-type transformer' means a transformer that--
                    ``(i) has an input voltage of 600 volts or less;
                    ``(ii) is air-cooled;
                    ``(iii) does not use oil as a coolant; and
                    ``(iv) is rated for operation at a frequency of 60 
                Hertz.
            ``(B) The term `low-voltage dry-type transformer' does not 
        include--
                    ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 20 percent 
                more than the lowest voltage tap;
                    ``(ii) transformers that are designed to be used in 
                a special purpose application, such as transformers 
                commonly known as drive transformers, rectifier 
                transformers, autotransformers, Uninterruptible Power 
                System transformers, impedance transformers, harmonic 
                transformers, regulating transformers, sealed and 
                nonventilating transformers, machine tool transformers, 
                welding transformers, grounding transformers, or 
                testing transformers; or
                    ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application and 
                the application of standards to the transformer would 
                not result in significant energy savings.
            ``(37) The term `standby mode' means the lowest amount of 
        electric power used by a household appliance when not 
        performing its active functions, as defined on an individual 
        product basis by the Secretary.
            ``(38) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward so as to give 
        indirect illumination.
            ``(39) The term `transformer' means a device consisting of 
        two or more coils of insulated wire that transfers alternating 
        current by electromagnetic induction from one coil to another 
        to change the original voltage or current value.
            ``(40) The term `unit heater' means a self-contained fan-
        type heater designed to be installed within the heated space, 
        except that such term does not include a warm air furnace.
            ``(41) The term `traffic signal module' means a standard 8-
        inch (200mm) or 12-inch (300mm) traffic signal indication, 
        consisting of a light source, a lens, and all other parts 
        necessary for operation, that communicates movement messages to 
        drivers through red, amber, and green colors.''.

SEC. 1044. ADDITIONAL TEST PROCEDURES.

    (a) Exit Signs.--Section 323(b) of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended by adding at the end the 
following:
            ``(9) Test procedures for illuminated exit signs shall be 
        based on the test method used under Version 2.0 of the Energy 
        Star program of the Environmental Protection Agency for 
        illuminated exit signs.
            ``(10) Test procedures for low voltage dry-type 
        distribution transformers shall be based on the `Standard Test 
        Method for Measuring the Energy Consumption of Distribution 
        Transformers' prescribed by the National Electrical 
        Manufacturers Association (NEMA TP 2-1998). The Secretary may 
        review and revise this test procedure based on future revisions 
        to such standard test method.
            ``(11) Test procedures for traffic signal modules shall be 
        based on the test method used under the Energy Star program of 
        the Environmental Protection Agency for traffic signal modules, 
        as in effect on the date of enactment of this paragraph.''.
    (b) Additional Consumer and Commercial Products.--Section 323 of 
the Energy Policy and Conservation Act (42 U.S.C. 6293) is further 
amended by adding at the end the following:
    ``(f) Additional Consumer and Commercial Products.--The Secretary 
shall within 24 months after the date of enactment of this subsection 
prescribe testing requirements for suspended ceiling fans, refrigerated 
bottled or canned beverage vending machines, commercial unit heaters, 
and commercial refrigerators, freezers and refrigerator-freezers. Such 
testing requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
suspended ceiling fans, such test procedures shall include efficiency 
at both maximum output and at an output no more than 50 percent of the 
maximum output.''.

SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL CONSUMER AND 
              COMMERCIAL PRODUCTS.

    Section 325 of the Energy Policy and Conservation Act (42 U.S.C. 
6295) is amended by adding at the end the following:
    ``(u) Standby Mode Electric Energy Consumption.--
            ``(1) Initial rulemaking.--(A) The Secretary shall, within 
        18 months after the date of enactment of this subsection, 
        prescribe by notice and comment, definitions of standby mode 
        and test procedures for the standby mode power use of battery 
        chargers and external power supplies. In establishing these 
        test procedures, the Secretary shall consider, among other 
        factors, existing test procedures used for measuring energy 
        consumption in standby mode and assess the current and 
        projected future market for battery chargers and external power 
        supplies. This assessment shall include estimates of the 
significance of potential energy savings from technical improvements to 
these products and suggested product classes for standards. Prior to 
the end of this time period, the Secretary shall hold a scoping 
workshop to discuss and receive comments on plans for developing energy 
conservation standards for standby mode energy use for these products.
            ``(B) The Secretary shall, within 3 years after the date of 
        enactment of this subsection, issue a final rule that 
        determines whether energy conservation standards shall be 
        promulgated for battery chargers and external power supplies or 
        classes thereof. For each product class, any such standards 
        shall be set at the lowest level of standby energy use that--
                    ``(i) meets the criteria of subsections (o), (p), 
                (q), (r), (s) and (t); and
                    ``(ii) will result in significant overall annual 
                energy savings, considering both standby mode and other 
                operating modes.
            ``(2) Designation of additional covered products.--(A) Not 
        later than 180 days after the date of enactment of this 
        subsection, the Secretary shall publish for public comment and 
        public hearing a notice to determine whether any noncovered 
        products should be designated as covered products for the 
        purpose of instituting a rulemaking under this section to 
        determine whether an energy conservation standard restricting 
        standby mode energy consumption, should be promulgated; except 
        that any restriction on standby mode energy consumption shall 
        be limited to major sources of such consumption.
            ``(B) In making the determinations pursuant to subparagraph 
        (A) of whether to designate new covered products and institute 
        rulemakings, the Secretary shall, among other relevant factors 
        and in addition to the criteria in section 322(b), consider--
                    ``(i) standby mode power consumption compared to 
                overall product energy consumption; and
                    ``(ii) the priority and energy savings potential of 
                standards which may be promulgated under this 
                subsection compared to other required rulemakings under 
                this section and the available resources of the 
                Department to conduct such rulemakings.
            ``(C) Not later than 1 year after the date of enactment of 
        this subsection, the Secretary shall issue a determination of 
        any new covered products for which he intends to institute 
        rulemakings on standby mode pursuant to this section and he 
        shall state the dates by which he intends to initiate those 
        rulemakings.
            ``(3) Review of standby energy use in covered products.--In 
        determining pursuant to section 323 whether test procedures and 
        energy conservation standards pursuant to this section should 
        be revised, the Secretary shall consider for covered products 
        which are major sources of standby mode energy consumption 
        whether to incorporate standby mode into such test procedures 
        and energy conservation standards, taking into account, among 
        other relevant factors, the criteria for non-covered products 
        in subparagraph (B) of paragraph (2) of this subsection.
            ``(4) Rulemaking for standby mode.--(A) Any rulemaking 
        instituted under this subsection or for covered products under 
        this section which restricts standby mode power consumption 
        shall be subject to the criteria and procedures for issuing 
        energy conservation standards set forth in this section and the 
        criteria set forth in subparagraph (B) of paragraph (2) of this 
        subsection.
            ``(B) No standard can be proposed for new covered products 
        or covered products in a standby mode unless the Secretary has 
        promulgated applicable test procedures for each product 
        pursuant to section 323.
            ``(C) The provisions of section 327 shall apply to new 
        covered products which are subject to the rulemakings for 
        standby mode after a final rule has been issued.
            ``(5) Effective date.--Any standard promulgated under this 
        subsection shall be applicable to products manufactured or 
        imported 3 years after the date of promulgation.
            ``(6) Voluntary programs to reduce standby mode energy 
        use.--The Secretary and the Administrator shall collaborate and 
        develop programs, including programs pursuant to section 324A 
        (relating to Energy Star Programs) and other voluntary industry 
        agreements or codes of conduct, which are designed to reduce 
        standby mode energy use.
    ``(v) Suspended Ceiling Fans, Vending Machines, Unit Heaters, and 
Commercial Refrigerators, Freezers and Refrigerator-Freezers.--The 
Secretary shall within 24 months after the date on which testing 
requirements are prescribed by the Secretary pursuant to section 
323(f), prescribe, by rule, energy conservation standards for suspended 
ceiling fans, refrigerated bottled or canned beverage vending machines, 
unit heaters, and commercial refrigerators, freezers and refrigerator-
freezers. In establishing standards under this subsection, the 
Secretary shall use the criteria and procedures contained in 
subsections (l) and (m). Any standard prescribed under this subsection 
shall apply to products manufactured 3 years after the date of 
publication of a final rule establishing such standard.
    ``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured 
on or after January 1, 2005 shall meet the Version 2.0 Energy Star 
Program performance requirements for illuminated exit signs prescribed 
by the Environmental Protection Agency
    ``(x) Torchieres.--Torchieres manufactured on or after January 1, 
2005--
            ``(1) shall consume not more than 190 watts of power; and
            ``(2) shall not be capable of operating with lamps that 
        total more than 190 watts.
    ``(y) Low Voltage Dry-Type Transformers.--The efficiency of low 
voltage dry-type transformers manufactured on or after January 1, 2005 
shall be the Class I Efficiency Levels for low voltage dry-type 
transformers specified in Table 4-2 of the `Guide for Determining 
Energy Efficiency for Distribution Transformers' published by the 
National Electrical Manufacturers Association (NEMA TP-1-1996).
    ``(z) Traffic Signal Modules.--Traffic signal modules manufactured 
on or after January 1, 2006 shall meet the performance requirements 
used under the Energy Star program of the Environmental Protection 
Agency for traffic signals, as in effect on the date of enactment of 
this paragraph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict monitoring 
systems.
    ``(aa) Effective Date of Section 327.--The provisions of section 
327 shall apply to products for which standards are set in subsections 
(v) through (z) of this section after the effective date for such 
standards.''.

SEC. 1046. ENERGY LABELING.

    (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Paragraph (2) of section 324(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the 
following:
    ``(F) Not later than 3 months after the date of enactment of this 
subparagraph, the Commission shall initiate a rulemaking to consider 
the effectiveness of the current consumer products labeling program in 
assisting consumers in making purchasing decisions and improving energy 
efficiency and to consider changes to the labeling rules that would 
improve the effectiveness of consumer product labels. Such rulemaking 
shall be completed within 2 years after the date of enactment of this 
subparagraph.''.
    (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
further amended by adding at the end the following:
    ``(5) The Secretary or the Commission, as appropriate, may for 
covered products referred to in subsections (u) through (z) of section 
325, prescribe, by rule, pursuant to this section, labeling 
requirements for such products after a test procedure has been set 
pursuant to section 323.''.

SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS.

    The Secretary of Energy shall contract with the National Academy of 
Sciences for a study, to be completed within 1 year of enactment of 
this Act, to examine whether the goals of energy efficiency standards 
are best served by measurement of energy consumed, and efficiency 
improvements, at the actual site of energy consumption, or through the 
full fuel cycle, beginning at the source of energy production. The 
Secretary shall submit the report to the Congress.

                         TITLE II--OIL AND GAS

                Subtitle A--Alaska Natural Gas Pipeline

SEC. 2001. SHORT TITLE.

    This subtitle may be cited as the ``Alaska Natural Gas Pipeline Act 
of 2003''.

SEC. 2002. FINDINGS AND PURPOSES.

    (a) Findings.--Congress finds the following:
            (1) Construction of a natural gas pipeline system from the 
        Alaskan North Slope to United States markets is in the national 
        interest and will enhance national energy security by providing 
        access to the significant gas reserves in Alaska needed to meet 
        the anticipated demand for natural gas.
            (2) The Commission issued a conditional certificate of 
        public convenience and necessity for the Alaska natural gas 
        transportation system, which remains in effect.
    (b) Purposes.--The purposes of this subtitle are as follows:
            (1) To provide a statutory framework for the expedited 
        approval, construction, and initial operation of an Alaska 
        natural gas transportation project, as an alternative to the 
        framework provided in the Alaska Natural Gas Transportation Act 
        of 1976 (15 U.S.C. 719 et seq.), which remains in effect.
            (2) To establish a process for providing access to such 
        transportation project in order to promote competition in the 
        exploration, development, and production of Alaska natural gas.
            (3) To clarify Federal authorities under the Alaska Natural 
        Gas Transportation Act of 1976.

SEC. 2003. DEFINITIONS.

    In this subtitle, the following definitions apply:
            (1) Alaska natural gas.--The term ``Alaska natural gas'' 
        means natural gas derived from the area of the State of Alaska 
        lying north of 64 degrees North latitude.
            (2) Alaska natural gas transportation project.--The term 
        ``Alaska natural gas transportation project'' means any natural 
        gas pipeline system that carries Alaska natural gas to the 
        border between Alaska and Canada (including related facilities 
        subject to the jurisdiction of the Commission) that is 
        authorized under either--
                    (A) the Alaska Natural Gas Transportation Act of 
                1976 (15 U.S.C. 719 et seq.); or
                    (B) section 2004.
            (3) Alaska natural gas transportation system.--The term 
        ``Alaska natural gas transportation system'' means the Alaska 
        natural gas transportation project authorized under the Alaska 
        Natural Gas Transportation Act of 1976 and designated and 
        described in section 2 of the President's decision.
            (4) Commission.--The term ``Commission'' means the Federal 
        Energy Regulatory Commission.
            (5) President's decision.--The term ``President's 
        decision'' means the decision and report to Congress on the 
        Alaska natural gas transportation system issued by the 
        President on September 22, 1977, pursuant to section 7 of the 
        Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719e) 
        and approved by Public Law 95-158 (91 Stat. 1268).

SEC. 2004. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

    (a) Authority of the Commission.--Notwithstanding the provisions of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et 
seq.), the Commission may, pursuant to section 7(c) of the Natural Gas 
Act (15 U.S.C. 717f(c)), consider and act on an application for the 
issuance of a certificate of public convenience and necessity 
authorizing the construction and operation of an Alaska natural gas 
transportation project other than the Alaska natural gas transportation 
system.
    (b) Issuance of Certificate.--
            (1) In general.--The Commission shall issue a certificate 
        of public convenience and necessity authorizing the 
        construction and operation of an Alaska natural gas 
        transportation project under this section if the applicant has 
        satisfied the requirements of section 7(e) of the Natural Gas 
        Act (15 U.S.C. 717f(e)).
            (2) Considerations.--In considering an application under 
        this section, the Commission shall presume that--
                    (A) a public need exists to construct and operate 
                the proposed Alaska natural gas transportation project; 
                and
                    (B) sufficient downstream capacity will exist to 
                transport the Alaska natural gas moving through such 
                project to markets in the contiguous United States.
    (c) Expedited Approval Process.--The Commission shall issue a final 
order granting or denying any application for a certificate of public 
convenience and necessity under section 7(c) of the Natural Gas Act (15 
U.S.C. 717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for that project 
pursuant to section 2005.
    (d) Prohibition on Certain Pipeline Route.--No license, permit, 
lease, right-of-way, authorization, or other approval required under 
Federal law for the construction of any pipeline to transport natural 
gas from lands within the Prudhoe Bay oil and gas lease area may be 
granted for any pipeline that follows a route that traverses--
            (1) the submerged lands (as defined by the Submerged Lands 
        Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
        and
            (2) enters Canada at any point north of 68 degrees North 
        latitude.
    (e) Open Season.--Except where an expansion is ordered pursuant to 
section 2006, initial or expansion capacity on any Alaska natural gas 
transportation project shall be allocated in accordance with procedures 
to be established by the Commission in regulations governing the 
conduct of open seasons for such project. Such procedures shall include 
the criteria for and timing of any open seasons, be consistent with the 
purposes set forth in section 2002(b)(2), and, for any open season for 
capacity beyond the initial capacity, provide the opportunity for the 
transportation of natural gas other than from the Prudhoe Bay and Point 
Thompson units. The Commission shall issue such regulations not later 
than 120 days after the date of enactment of this Act.
    (f) Projects in the Contiguous United States.--Applications for 
additional or expanded pipeline facilities that may be required to 
transport Alaska natural gas from Canada to markets in the contiguous 
United States may be made pursuant to the Natural Gas Act. To the 
extent such pipeline facilities include the expansion of any facility 
constructed pursuant to the Alaska Natural Gas Transportation Act of 
1976, the provisions of that Act shall continue to apply.
    (g) Study of In-State Needs.--The holder of the certificate of 
public convenience and necessity issued, modified, or amended by the 
Commission for an Alaska natural gas transportation project shall 
demonstrate that it has conducted a study of Alaska in-State needs, 
including tie-in points along the Alaska natural gas transportation 
project for in-State access.
    (h) Alaska Royalty Gas.--The Commission, upon the request of the 
State of Alaska and after a hearing, may provide for reasonable access 
to the Alaska natural gas transportation project for the State of 
Alaska or its designee for the transportation of the State's royalty 
gas for local consumption needs within the State; except that the rates 
of existing shippers of subscribed capacity on such project shall not 
be increased as a result of such access.
    (i) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

SEC. 2005. ENVIRONMENTAL REVIEWS.

    (a) Compliance With NEPA.--The issuance of a certificate of public 
convenience and necessity authorizing the construction and operation of 
any Alaska natural gas transportation project under section 2004 shall 
be treated as a major Federal action significantly affecting the 
quality of the human environment within the meaning of section 
102(2)(C) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(C)).
    (b) Designation of Lead Agency.--The Commission shall be the lead 
agency for purposes of complying with the National Environmental Policy 
Act of 1969, and shall be responsible for preparing the statement 
required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with 
respect to an Alaska natural gas transportation project under section 
2004. The Commission shall prepare a single environmental statement 
under this section, which shall consolidate the environmental reviews 
of all Federal agencies considering any aspect of the project.
    (c) Other Agencies.--All Federal agencies considering aspects of 
the construction and operation of an Alaska natural gas transportation 
project under section 2004 shall cooperate with the Commission, and 
shall comply with deadlines established by the Commission in the 
preparation of the statement under this section. The statement prepared 
under this section shall be used by all such agencies to satisfy their 
responsibilities under section 102(2)(C) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(C)) with respect to such project.
    (d) Expedited Process.--The Commission shall issue a draft 
statement under this section not later than 12 months after the 
Commission determines the application to be complete and shall issue 
the final statement not later than 6 months after the Commission issues 
the draft statement, unless the Commission for good cause finds that 
additional time is needed.

SEC. 2006. PIPELINE EXPANSION.

    (a) Authority.--With respect to any Alaska natural gas 
transportation project, upon the request of one or more persons and 
after giving notice and an opportunity for a hearing, the Commission 
may order the expansion of such project if it determines that such 
expansion is required by the present and future public convenience and 
necessity.
    (b) Requirements.--Before ordering an expansion, the Commission 
shall--
            (1) approve or establish rates for the expansion service 
        that are designed to ensure the recovery, on an incremental or 
        rolled-in basis, of the cost associated with the expansion 
        (including a reasonable rate of return on investment);
            (2) ensure that the rates as established do not require 
        existing shippers on the Alaska natural gas transportation 
        project to subsidize expansion shippers;
            (3) find that the proposed shipper will comply with, and 
        the proposed expansion and the expansion of service will be 
        undertaken and implemented based on, terms and conditions 
        consistent with the then-effective tariff of the Alaska natural 
        gas transportation project;
            (4) find that the proposed facilities will not adversely 
        affect the financial or economic viability of the Alaska 
        natural gas transportation project;
            (5) find that the proposed facilities will not adversely 
        affect the overall operations of the Alaska natural gas 
        transportation project;
            (6) find that the proposed facilities will not diminish the 
        contract rights of existing shippers to previously subscribed 
        certificated capacity;
            (7) ensure that all necessary environmental reviews have 
        been completed; and
            (8) find that adequate downstream facilities exist or are 
        expected to exist to deliver incremental Alaska natural gas to 
        market.
    (c) Requirement for a Firm Transportation Agreement.--Any order of 
the Commission issued pursuant to this section shall be null and void 
unless the person or persons requesting the order executes a firm 
transportation agreement with the Alaska natural gas transportation 
project within a reasonable period of time as specified in such order.
    (d) Limitation.--Nothing in this section shall be construed to 
expand or otherwise affect any authorities of the Commission with 
respect to any natural gas pipeline located outside the State of 
Alaska.
    (e) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

SEC. 2007. FEDERAL COORDINATOR.

    (a) Establishment.--There is established, as an independent office 
in the executive branch, the Office of the Federal Coordinator for 
Alaska Natural Gas Transportation Projects.
    (b) Federal Coordinator.--The Office shall be headed by a Federal 
Coordinator for Alaska Natural Gas Transportation Projects, who shall--
            (1) be appointed by the President, by and with the advice 
        of the Senate;
            (2) hold office at the pleasure of the President; and
            (3) be compensated at the rate prescribed for level III of 
        the Executive Schedule (5 U.S.C. 5314).
    (c) Duties.--The Federal Coordinator shall be responsible for--
            (1) coordinating the expeditious discharge of all 
        activities by Federal agencies with respect to an Alaska 
        natural gas transportation project; and
            (2) ensuring the compliance of Federal agencies with the 
        provisions of this subtitle.
    (d) Reviews and Actions of Other Federal Agencies.--
            (1) Expedited reviews and actions.--All reviews conducted 
        and actions taken by any Federal officer or agency relating to 
        an Alaska natural gas transportation project authorized under 
        this section shall be expedited, in a manner consistent with 
        completion of the necessary reviews and approvals by the 
        deadlines set forth in this subtitle.
            (2) Prohibition on certain terms and conditions.--Except 
        with respect to Commission actions under sections 2004, 2005, 
        and 2006, no Federal officer or agency shall have the authority 
        to include terms and conditions that are permitted, but not 
        required, by law on any certificate, right-of-way, permit, 
        lease, or other authorization issued to an Alaska natural gas 
        transportation project if the Federal Coordinator determines 
        that the terms and conditions would prevent or impair in any 
        significant respect the expeditious construction and operation 
        of the project.
            (3) Prohibition on certain actions.--Except with respect to 
        Commission actions under sections 2004, 2005, and 2006, unless 
        required by law, no Federal officer or agency shall add to, 
        amend, or abrogate any certificate, right-of-way, permit, 
        lease, or other authorization issued to an Alaska natural gas 
        transportation project if the Federal Coordinator determines 
        that such action would prevent or impair in any significant 
        respect the expeditious construction and operation of the 
        project.
    (e) State Coordination.--The Federal Coordinator shall enter into a 
Joint Surveillance and Monitoring Agreement, approved by the President 
and the Governor of Alaska, with the State of Alaska similar to that in 
effect during construction of the Trans-Alaska Oil Pipeline to monitor 
the construction of the Alaska natural gas transportation project. The 
Federal Government shall have primary surveillance and monitoring 
responsibility where the Alaska natural gas transportation project 
crosses Federal lands and private lands, and the State government shall 
have primary surveillance and monitoring responsibility where the 
Alaska natural gas transportation project crosses State lands.
    (f) Transfer of Federal Inspector Functions and Authority.--Upon 
appointment of the Federal Coordinator by the President, all of the 
functions and authority of the Office of Federal Inspector of 
Construction for the Alaska Natural Gas Transportation System vested in 
the Secretary of Energy pursuant to section 3012(b) of Public Law 102-
486 (15 U.S.C. 719e(b)), including all functions and authority 
described and enumerated in the Reorganization Plan No. 1 of 1979 (44 
Fed. Reg. 33,663), Executive Order No. 12142 of June 21, 1979 (44 Fed. 
Reg. 36,927), and section 5 of the President's decision, shall be 
transferred to the Federal Coordinator.

SEC. 2008. JUDICIAL REVIEW.

    (a) Exclusive Jurisdiction.--Except for review by the Supreme Court 
of the United States on writ of certiorari, the United States Court of 
Appeals for the District of Columbia Circuit shall have original and 
exclusive jurisdiction to determine--
            (1) the validity of any final order or action (including a 
        failure to act) of any Federal agency or officer under this 
        subtitle;
            (2) the constitutionality of any provision of this 
        subtitle, or any decision made or action taken under this 
        subtitle; or
            (3) the adequacy of any environmental impact statement 
        prepared under the National Environmental Policy Act of 1969 
        with respect to any action under this subtitle.
    (b) Deadline for Filing Claim.--Claims arising under this subtitle 
may be brought not later than 60 days after the date of the decision or 
action giving rise to the claim.
    (c) Expedited Consideration.--The United States Court of Appeals 
for the District of Columbia Circuit shall set any action brought under 
subsection (a) for expedited consideration, taking into account the 
national interest as described in section 2002(a).
    (d) Amendment to ANGTA.--Section 10(c) of the Alaska Natural Gas 
Transportation Act of 1976 (15 U.S.C. 719h) is amended by inserting 
after paragraph (1) the following:
    ``(2) The United States Court of Appeals for the District of 
Columbia Circuit shall set any action brought under this section for 
expedited consideration, taking into account the national interest 
described in section 2.''.

SEC. 2009. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

    (a) Local Distribution.--Any facility receiving natural gas from 
the Alaska natural gas transportation project for delivery to consumers 
within the State of Alaska shall be deemed to be a local distribution 
facility within the meaning of section 1(b) of the Natural Gas Act (15 
U.S.C. 717(b)), and therefore not subject to the jurisdiction of the 
Commission.
    (b) Additional Pipelines.--Nothing in this subtitle, except as 
provided in section 2004(d), shall preclude or affect a future gas 
pipeline that may be constructed to deliver natural gas to Fairbanks, 
Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez 
or any other site in the State of Alaska for consumption within or 
distribution outside the State of Alaska.
    (c) Rate Coordination.--Pursuant to the Natural Gas Act, the 
Commission shall establish rates for the transportation of natural gas 
on the Alaska natural gas transportation project. In exercising such 
authority, the Commission, pursuant to section 17(b) of the Natural Gas 
Act (15 U.S.C. 717p(b)), shall confer with the State of Alaska 
regarding rates (including rate settlements) applicable to natural gas 
transported on and delivered from the Alaska natural gas transportation 
project for use within the State of Alaska.

SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

    (a) Requirement of Study.--If no application for the issuance of a 
certificate or amended certificate of public convenience and necessity 
authorizing the construction and operation of an Alaska natural gas 
transportation project has been filed with the Commission not later 
than 18 months after the date of enactment of this Act, the Secretary 
of Energy shall conduct a study of alternative approaches to the 
construction and operation of the project.
    (b) Scope of Study.--The study shall consider the feasibility of 
establishing a Government corporation to construct an Alaska natural 
gas transportation project, and alternative means of providing Federal 
financing and ownership (including alternative combinations of 
Government and private corporate ownership) of the project.
    (c) Consultation.--In conducting the study, the Secretary of Energy 
shall consult with the Secretary of the Treasury and the Secretary of 
the Army (acting through the Commanding General of the Corps of 
Engineers).
    (d) Report.--If the Secretary of Energy is required to conduct a 
study under subsection (a), the Secretary shall submit a report 
containing the results of the study, the Secretary's recommendations, 
and any proposals for legislation to implement the Secretary's 
recommendations to Congress.

SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.

    (a) Savings Clause.--Nothing in this subtitle affects any decision, 
certificate, permit, right-of-way, lease, or other authorization issued 
under section 9 of the Alaska Natural Gas Transportation Act of 1976 
(15 U.S.C. 719g) or any Presidential findings or waivers issued in 
accordance with that Act.
    (b) Clarification of Authority to Amend Terms and Conditions to 
Meet Current Project Requirements.--Any Federal officer or agency 
responsible for granting or issuing any certificate, permit, right-of-
way, lease, or other authorization under section 9 of the Alaska 
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) may add to, 
amend, or abrogate any term or condition included in such certificate, 
permit, right-of-way, lease, or other authorization to meet current 
project requirements (including the physical design, facilities, and 
tariff specifications), so long as such action does not compel a change 
in the basic nature and general route of the Alaska natural gas 
transportation system as designated and described in section 2 of the 
President's decision, or would otherwise prevent or impair in any 
significant respect the expeditious construction and initial operation 
of such transportation system.
    (c) Updated Environmental Reviews.--The Secretary of Energy shall 
require the sponsor of the Alaska natural gas transportation system to 
submit such updated environmental data, reports, permits, and impact 
analyses as the Secretary determines are necessary to develop detailed 
terms, conditions, and compliance plans required by section 5 of the 
President's decision.

SEC. 2012. SENSE OF CONGRESS.

    It is the sense of Congress that an Alaska natural gas 
transportation project will provide significant economic benefits to 
the United States and Canada. In order to maximize those benefits, 
Congress urges the sponsors of the pipeline project to make every 
effort to use steel that is manufactured or produced in North America 
and to negotiate a project labor agreement to expedite construction of 
the pipeline.

SEC. 2013. PARTICIPATION OF SMALL BUSINESS CONCERNS.

    (a) Sense of Congress.--It is the sense of Congress that an Alaska 
natural gas transportation project will provide significant economic 
benefits to the United States and Canada. In order to maximize those 
benefits, Congress urges the sponsors of the pipeline project to 
maximize the participation of small business concerns in contracts and 
subcontracts awarded in carrying out the project.
    (b) Study.--
            (1) In general.--The Comptroller General shall conduct a 
        study on the extent to which small business concerns 
        participate in the construction of oil and gas pipelines in the 
        United States.
            (2) Report.--Not later that 1 year after the date of 
        enactment of this Act, the Comptroller General shall transmit 
        to Congress a report containing the results of the study.
            (3) Updates.--The Comptroller General shall update the 
        study at least once every 5 years and transmit to Congress a 
        report containing the results of the update.
            (4) Applicability.--After the date of completion of the 
        construction of an Alaska natural gas transportation project, 
        this subsection shall no longer apply.
    (c) Small Business Concern Defined.--In this section, the term 
``small business concern'' has the meaning given such term in section 
3(a) of the Small Business Act (15 U.S.C. 632(a)).

SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.

    (a) Establishment of Program.--The Secretary of Labor (in this 
section referred to as the ``Secretary'') may make grants to the Alaska 
Department of Labor and Workforce Development to--
            (1) develop a plan to train, through the workforce 
        investment system established in the State of Alaska under the 
        Workforce Investment Act of 1998 (112 Stat. 936 et seq.), adult 
        and dislocated workers, including Alaska Natives, in urban and 
        rural Alaska in the skills required to construct and operate an 
        Alaska gas pipeline system; and
            (2) implement the plan developed pursuant to paragraph (1).
    (b) Requirements for Planning Grants.--The Secretary may make a 
grant under subsection (a)(1) only if--
            (1) the Governor of Alaska certifies in writing to the 
        Secretary that there is a reasonable expectation that 
        construction of an Alaska gas pipeline will commence within 3 
        years after the date of such certification; and
            (2) the Secretary of the Interior concurs in writing to the 
        Secretary with the certification made under paragraph (1).
    (c) Requirements for Implementation Grants.--The Secretary may make 
a grant under subsection (a)(2) only if--
            (1) the Secretary has approved a plan developed pursuant to 
        subsection (a)(1);
            (2) the Governor of Alaska requests the grant funds and 
        certifies in writing to the Secretary that there is a 
        reasonable expectation that the construction of an Alaska gas 
        pipeline system will commence within 2 years after the date of 
        such certification;
            (3) the Secretary of the Interior concurs in writing to the 
        Secretary with the certification made under paragraph (2) after 
        considering--
                    (A) the status of necessary State and Federal 
                permits;
                    (B) the availability of financing for the pipeline 
                project; and
                    (C) other relevant factors and circumstances.
    (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Labor such sums as may be necessary, 
but not to exceed $20,000,000, to carry out this section.

                Subtitle B--Strategic Petroleum Reserve

SEC. 2101. FULL CAPACITY OF STRATEGIC PETROLEUM RESERVE.

    The President shall--
            (1) fill the Strategic Petroleum Reserve established 
        pursuant to part B of title I of the Energy Policy and 
        Conservation Act (42 U.S.C. 6231 et seq.) to full capacity as 
        soon as practicable;
            (2) acquire petroleum for the Strategic Petroleum Reserve 
        by the most practicable and cost-effective means, with 
        consideration being given to domestically produced petroleum, 
        including the acquisition of crude oil the United States is 
        entitled to receive in kind as royalties from production on 
        Federal lands; and
            (3) ensure that the fill rate minimizes impacts on 
        petroleum markets.

SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION.

    (a) Plan.--Not later than 180 days after the date of the enactment 
of this Act, the Secretary of Energy shall transmit to the Congress a 
plan for the expansion of the Strategic Petroleum Reserve to 
1,000,000,000 barrels, including--
            (1) plans for the elimination of infrastructure impediments 
        to maximum drawdown capability;
            (2) a schedule for the completion of all required 
        environmental reviews;
            (3) provision for consultation with Federal and State 
        environmental agencies;
            (4) a schedule and procedures for site selection; and
            (5) anticipated annual budget requests.
    (b) Construction of Additional Capacity.--The Secretary of Energy 
shall acquire property and complete construction for the expansion of 
the Strategic Petroleum Reserve in accordance with the plan transmitted 
under subsection (a).
    (c) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $1,500,000,000 for carrying out 
this section, to remain available until expended.

SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
              RESERVE AND OTHER ENERGY PROGRAMS.

    (a) Amendment to Title I of the Energy Policy and Conservation 
Act.--Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 
et seq.) is amended--
            (1) by striking section 166 (42 U.S.C. 6246) and 
        inserting--

                   ``authorization of appropriations

    ``Sec. 166. There are authorized to be appropriated to the 
Secretary such sums as may be necessary to carry out this part and part 
D, to remain available until expended.'';
            (2) by striking section 186 (42 U.S.C. 6250e); and
            (3) by striking part E (42 U.S.C. 6251; relating to the 
        expiration of title I of the Act).
    (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
            (1) by inserting before section 273 (42 U.S.C. 6283) the 
        following:

          ``Part C--Summer Fill and Fuel Budgeting Programs'';

            (2) by striking section 273(e) (42 U.S.C. 6283(e); relating 
        to the expiration of summer fill and fuel budgeting programs); 
        and
            (3) by striking part D (42 U.S.C. 6285; relating to the 
        expiration of title II of the Act).
    (c) Technical Amendments.--The table of contents for the Energy 
Policy and Conservation Act is amended--
            (1) by inserting after the items relating to part C of 
        title I the following:

              ``Part D--Northeast Home Heating Oil Reserve

``Sec. 181. Establishment.
``Sec. 182. Authority.
``Sec. 183. Conditions for release; plan.
``Sec. 184. Northeast Home Heating Oil Reserve Account.
``Sec. 185. Exemptions.'';
            (2) by amending the items relating to part C of title II to 
        read as follows:

           ``Part C--Summer Fill and Fuel Budgeting Programs

``Sec. 273. Summer fill and fuel budgeting programs.''; and
            (3) by striking the items relating to part D of title II.
    (d) Amendment to the Energy Policy and Conservation Act.--Section 
183(b)(1) of the Energy Policy and Conservation Act (42 U.S.C. 
6250b(b)(1)) is amended by inserting ``(considered as a heating season 
average)'' after ``mid-October through March''.

                    Subtitle C--Hydraulic Fracturing

SEC. 2201. HYDRAULIC FRACTURING.

    Paragraph (1) of section 1421(d) of the Safe Drinking Water Act (42 
U.S.C. 300h(d)) is amended to read as follows:
            ``(1) The term `underground injection'--
                    ``(A) means the subsurface emplacement of fluids by 
                well injection; and
                    ``(B) excludes--
                            ``(i) the underground injection of natural 
                        gas for purposes of storage; and
                            ``(ii) the underground injection of fluids 
                        or propping agents pursuant to hydraulic 
                        fracturing operations related to oil or gas 
                        production activities.''.

   Subtitle D--Unproven Oil and Natural Gas Reserves Recovery Program

SEC. 2301. PROGRAM.

    The Secretary shall carry out a program to demonstrate technologies 
for the recovery of oil and natural gas reserves from reservoirs 
described in section 2302.

SEC. 2302. ELIGIBLE RESERVOIRS.

    The program under this subtitle shall only address oil and natural 
gas reservoirs with 1 or more of the following characteristics:
            (1) Complex geology involving rapid changes in the type and 
        quality of the oil reservoir across the reservoir.
            (2) Low reservoir pressure.
            (3) Unconventional natural gas reservoirs in coalbeds, 
        tight sands, or shales.

SEC. 2303. FOCUS AREAS.

    The program under this subtitle may focus on areas including coal-
bed methane, deep drilling, natural gas production from tight sands, 
natural gas production from gas shales, innovative production 
techniques (including horizontal drilling, fracture detection 
methodologies, and three-dimensional seismic), and enhanced recovery 
techniques.

SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES.

    Activities under this subtitle shall be carried out only--
            (1) in--
                    (A) areas onshore in the United States on public 
                land administered by the Secretary of the Interior 
                available for oil and gas leasing, where consistent 
                with applicable law and land use plans; and
                    (B) areas onshore in the United States on State or 
                private land, subject to applicable law; and
            (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.

SEC. 2305. PROGRAM ADMINISTRATION.

    (a) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this subtitle.
    (b) Role of the Program Consortium.--
            (1) In general.--The Secretary shall contract with a 
        consortium to--
                    (A) manage awards pursuant to subsection (e)(4);
                    (B) make recommendations to the Secretary for 
                project solicitations;
                    (C) disburse funds awarded under subsection (e) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (d); and
                    (D) carry out other activities assigned to the 
                program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as specifically 
        authorized under this section.
            (3) Conflict of interest.--(A) The Secretary shall 
        establish procedures--
                    (i) to ensure that each board member, officer, or 
                employee of the program consortium who is in a 
                decisionmaking capacity under subsection (e)(3) or (4) 
                shall disclose to the Secretary any financial interests 
                in, or financial relationships with, applicants for or 
                recipients of awards under this section, including 
                those of his or her spouse or minor child, unless such 
                relationships or interests would be considered to be 
                remote or inconsequential; and
                    (ii) to require any board member, officer, or 
                employee with a financial relationship or interest 
                disclosed under clause (i) to recuse himself or herself 
                from any review under subsection (e)(3) or oversight 
                under subsection (e)(4) with respect to such applicant 
                or recipient.
            (B) The Secretary may disqualify an application or revoke 
        an award under this section if a board member, officer, or 
        employee has failed to comply with procedures required under 
        subparagraph (A)(ii).
    (c) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
            (2) Members.--The program consortium may include 
        corporations and institutions of higher education. The 
        Secretary shall give preference in the selection of the program 
        consortium to applicants with broad representation from the 
        various major oil and natural gas basins in the United States. 
        After submitting a proposal under paragraph (4), the program 
        consortium may not add members without the consent of the 
        Secretary.
            (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
            (4) Schedule.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for the creation of the program consortium, which must be 
        submitted not less than 180 days after the date of enactment of 
        this Act. The Secretary shall select the program consortium not 
        later than 240 days after such date of enactment.
            (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and
                    (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
            (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing programs for the production of oil or natural gas.
            (7) Criterion.--The Secretary may consider the amount of 
        the fee an applicant proposes to receive under subsection (f) 
        in selecting a consortium under this section.
    (d) Annual Plan.--
            (1) In general.--The program under this subtitle shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--(A) Before drafting an annual plan under 
        this subsection, the Secretary shall solicit specific written 
        recommendations from the program consortium for each element to 
        be addressed in the plan, including those described in 
        paragraph (4). The Secretary may request that the program 
        consortium submit its recommendations in the form of a draft 
        annual plan.
            (B) The Secretary shall submit the recommendations of the 
        program consortium under subparagraph (A) to the Advisory 
        Committee for review, and the Advisory Committee shall provide 
        to the Secretary written comments by a date determined by the 
        Secretary. The Secretary may also solicit comments from any 
        other experts.
            (C) The Secretary shall consult regularly with the program 
        consortium throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to the 
        Congress and publish in the Federal Register the annual plan, 
        along with any written comments received under paragraph (2)(A) 
        and (B). The annual plan shall be transmitted and published not 
        later than 60 days after the date of enactment of an Act making 
        appropriations for a fiscal year for the program under this 
        subtitle.
            (4) Contents.--The annual plan shall describe the ongoing 
        and prospective activities of the program under this subtitle 
        and shall include--
                    (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out activities, 
                including the topics for such work, who would be 
                eligible to apply, selection criteria, and the duration 
                of awards; and
                    (B) a description of the activities expected of the 
                program consortium to carry out subsection (e)(4).
    (e) Awards.--
            (1) In general.--The Secretary shall make awards to carry 
        out activities under the program under this subtitle. The 
        program consortium shall not be eligible to receive such 
        awards, but members of the program consortium may receive such 
        awards.
            (2) Proposals.--
                    (A) Solicitation.--The Secretary shall solicit 
                proposals for awards under this subsection in such 
                manner and at such time as the Secretary may prescribe, 
                in consultation with the program consortium.
                    (B) Contents.--Each proposal submitted shall 
                include the following:
                            (i) An estimate of the potential unproven 
                        reserves in the reservoir, established by a 
                        registered petroleum engineer.
                            (ii) An estimate of the potential for 
                        success of the project.
                            (iii) A detailed project plan.
                            (iv) A detailed analysis of the costs 
                        associated with the project.
                            (v) A time frame for project completion.
                            (vi) Evidence that any lienholder on the 
                        project will subordinate its interests to the 
                        extent necessary to ensure that the Federal 
                        government receives its portion of any revenues 
                        pursuant to section 2308.
                            (vii) Such other matters as the Secretary 
                        considers appropriate.
            (3) Review.--The Secretary shall make awards under this 
        subsection through a competitive process, which shall include a 
        review by individuals selected by the Secretary. Such 
        individuals shall include, for each application, Federal 
        officials, the program consortium, and non-Federal experts who 
        are not board members, officers, or employees of the program 
        consortium or of a member of the program consortium.
            (4) Oversight.--(A) The program consortium shall oversee 
        the implementation of awards under this subsection, consistent 
        with the annual plan under subsection (d), including disbursing 
        funds and monitoring activities carried out under such awards 
        for compliance with the terms and conditions of the awards.
            (B) Nothing in subparagraph (A) shall limit the authority 
        or responsibility of the Secretary to oversee awards, or limit 
        the authority of the Secretary to review or revoke awards.
            (C) The Secretary shall provide to the program consortium 
        the information necessary for the program consortium to carry 
        out its responsibilities under this paragraph.
    (f) Fee.--To compensate the program consortium for carrying out its 
activities under this section, the Secretary shall provide to the 
program consortium a fee in an amount not to exceed 7.5 percent of the 
amounts awarded under subsection (e) for each fiscal year.
    (g) Disallowed Expenses.--No portion of any award shall be used by 
a recipient for general or administrative expenses of any kind.
    (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (e), 
have been expended in a manner consistent with the purposes and 
requirements of this subtitle. The auditor shall transmit a report 
annually to the Secretary, who shall transmit the report to Congress, 
along with a plan to remedy any deficiencies cited in the report.

SEC. 2306. ADVISORY COMMITTEE.

    (a) Establishment.--Not later than 270 days after the date of 
enactment of this Act, the Secretary shall establish an Advisory 
Committee.
    (b) Membership.--The Advisory Committee shall be composed of 
members appointed by the Secretary and including--
            (1) individuals with extensive experience or operational 
        knowledge of oil and natural gas production, including 
        independent oil and gas producers;
            (2) individuals broadly representative of oil and natural 
        gas production; and
            (3) no individuals who are Federal employees.
    (c) Duties.--The Advisory Committee shall advise the Secretary on 
the development and implementation of activities under this subtitle.
    (d) Compensation.--A member of the Advisory Committee shall serve 
without compensation but shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United States Code.
    (e) Prohibition.--The Advisory Committee shall not make 
recommendations on funding awards to consortia or for specific 
projects.

SEC. 2307. LIMITS ON PARTICIPATION.

    An entity shall be eligible to receive an award under this subtitle 
only if the Secretary finds--
            (1) that the entity's participation in the program under 
        this subtitle would be in the economic interest of the United 
        States;
            (2) that the entity is a United States-owned entity 
        organized under the laws of the United States with production 
        levels of less than 1,000 barrels per day of oil equivalent; 
        and
            (3) that the entity has demonstrated that nongovernmental 
        third party sources of financing are not available for the 
        proposal project.

SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT.

    (a) Initial Rate.--Until the amount of a grant under this subtitle 
has been fully repaid to the Federal Government under this subsection, 
95 percent of all revenues derived from increased incremental 
production attributable to participation in the program under this 
subtitle shall be paid to the Secretary by the purchaser of such 
increased production.
    (b) Rate After Repayment.--After the Federal Government has been 
fully repaid under subsection (a), 5 percent of all revenues derived 
from increased incremental production attributable to participation in 
the program under this subtitle shall be paid to the Secretary by the 
purchaser of such increased production.

SEC. 2309. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for 
carrying out this subtitle $100,000,000, to remain available until 
expended.

SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS AND METHODOLOGIES.

    The results of any project undertaken pursuant to this subtitle and 
the methodologies used to achieve those results shall be made public by 
the Secretary. The methodologies used shall not be proprietary so that 
such methodologies may be used for other projects by persons not 
seeking awards pursuant to this subtitle.

SEC. 2311. SUNSET.

    The authority provided by this subtitle shall terminate on 
September 30, 2010.

SEC. 2312. DEFINITIONS.

    In this subtitle:
            (1) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 2305(c).
            (2) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
        regulations issued by the Office of Government Ethics under 
        section 208(b)(2) of title 18, United States Code.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

                       Subtitle E--Miscellaneous

SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUCTION PROJECTS.

    (a) Agency of Record.--Any Federal administrative agency proceeding 
that is an appeal or review of Federal authority for an interstate 
natural gas pipeline construction project, including construction of 
natural gas storage and liquefied natural gas facilities, shall use as 
its exclusive record for all purposes the record compiled by the 
Federal Energy Regulatory Commission pursuant to such Commission's 
proceeding under section 7 of the Natural Gas Act.
    (b) Sense of the Congress.--It is the sense of the Congress that 
all Federal and State agencies with jurisdiction over interstate 
natural gas pipeline construction activities should coordinate their 
proceedings within the time frames established by the Federal Energy 
Regulatory Commission while it is acting pursuant to section 7 of the 
Natural Gas Act to determine whether a proposed interstate natural gas 
pipeline is in the public convenience and necessity.

SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY.

    (a) Establishment of System.--Not later than 180 days after the 
date of enactment of this Act, the Federal Energy Regulatory Commission 
shall issue rules authorizing or establishing an electronic information 
system to provide the Commission and the public with timely access to 
such information as is necessary or appropriate to facilitate price 
transparency and participation in natural gas markets. Such system 
shall provide information about the market price of natural gas sold in 
interstate commerce.
    (b) Data Subject to Disclosure.--Rules issued under subsection (a) 
shall require public availability only of--
            (1) aggregate data; and
            (2) transaction-specific data that is otherwise required by 
        the Federal Energy Regulatory Commission to be made public.
    (c) Civil Penalty.--Any person who violates any provision of a rule 
issued under subsection (a) shall be subject to a civil penalty of not 
more than $1,000,000 for each day that such violation continues. Such 
penalty shall be assessed by the Federal Energy Regulatory Commission, 
after notice and opportunity for public hearing. In determining the 
amount of a proposed penalty, the Commission shall take into 
consideration the seriousness of the violation and the efforts of such 
person to remedy the violation in a timely manner.

SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION DEFINED.

    Section 502 of the Federal Water Pollution Control Act (33 U.S.C. 
1362) is amended by adding at the end the following:
    ``(24) The term `oil and gas exploration and production' means all 
field operations necessary for both exploration and production of oil 
and gas, including activities necessary to prepare a site for drilling 
and for the movement and placement of drilling equipment, whether or 
not such activities may be considered construction activities.''.

                  TITLE III--HYDROELECTRIC RELICENSING

                   Subtitle A--Alternative Conditions

SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS.

    (a) Federal Reservations.--Section 4(e) of the Federal Power Act 
(16 U.S.C. 797(e)) is amended by inserting after ``adequate protection 
and utilization of such reservation.'' at the end of the first proviso 
the following: ``The license applicant shall be entitled to a 
determination on the record, after opportunity for an agency trial-type 
hearing of any disputed issues of material fact, with respect to such 
conditions.''.
    (b) Fishways.--Section 18 of the Federal Power Act (16 U.S.C. 811) 
is amended by inserting after ``and such fishways as may be prescribed 
by the Secretary of Commerce.'' the following: ``The license applicant 
shall be entitled to a determination on the record, after opportunity 
for an agency trial-type hearing of any disputed issues of material 
fact, with respect to such fishways.''.
    (c) Alternative Conditions and Prescriptions.--Part I of the 
Federal Power Act (16 U.S.C. 791a et seq.) is amended by adding the 
following new section at the end thereof:

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

    ``(a) Alternative Conditions.--(1) Whenever any person applies for 
a license for any project works within any reservation of the United 
States, and the Secretary of the department under whose supervision 
such reservation falls (referred to in this subsection as `the 
Secretary') deems a condition to such license to be necessary under the 
first proviso of section 4(e), the license applicant may propose an 
alternative condition.
    ``(2) Notwithstanding the first proviso of section 4(e), the 
Secretary shall accept the proposed alternative condition referred to 
in paragraph (1), and the Commission shall include in the license such 
alternative condition, if the Secretary determines, based on 
substantial evidence provided by the license applicant or otherwise 
available to the Secretary, that such alternative condition--
            ``(A) provides for the adequate protection and utilization 
        of the reservation; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production,
        as compared to the condition initially deemed necessary by the 
        Secretary.
    ``(3) The Secretary shall submit into the public record of the 
Commission proceeding with any condition under section 4(e) or 
alternative condition it accepts under this section, a written 
statement explaining the basis for such condition, and reason for not 
accepting any alternative condition under this section. The written 
statement must demonstrate that the Secretary gave equal consideration 
to the effects of the condition adopted and alternatives not accepted 
on energy supply, distribution, cost, and use; flood control; 
navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other interested 
parties from proposing alternative conditions.
    ``(5) If the Secretary does not accept an applicant's alternative 
condition under this section, and the Commission finds that the 
Secretary's condition would be inconsistent with the purposes of this 
part, or other applicable law, the Commission may refer the dispute to 
the Commission's Dispute Resolution Service. The Dispute Resolution 
Service shall consult with the Secretary and the Commission and issue a 
non-binding advisory within 90 days. The Secretary may accept the 
Dispute Resolution Service advisory unless the Secretary finds that the 
recommendation will not adequately protect the reservation. The 
Secretary shall submit the advisory and the Secretary's final written 
determination into the record of the Commission's proceeding.
    ``(b) Alternative Prescriptions.--(1) Whenever the Secretary of the 
Interior or the Secretary of Commerce prescribes a fishway under 
section 18, the license applicant or licensee may propose an 
alternative to such prescription to construct, maintain, or operate a 
fishway. The alternative may include a fishway or an alternative to a 
fishway.
    ``(2) Notwithstanding section 18, the Secretary of the Interior or 
the Secretary of Commerce, as appropriate, shall accept and prescribe, 
and the Commission shall require, the proposed alternative referred to 
in paragraph (1), if the Secretary of the appropriate department 
determines, based on substantial evidence provided by the licensee or 
otherwise available to the Secretary, that such alternative--
            ``(A) will be no less protective of the fish resources than 
        the fishway initially prescribed by the Secretary; and
            ``(B) will either--
                    ``(i) cost less to implement; or
                    ``(ii) result in improved operation of the project 
                works for electricity production,
        as compared to the fishway initially deemed necessary by the 
        Secretary.
    ``(3) The Secretary concerned shall submit into the public record 
of the Commission proceeding with any prescription under section 18 or 
alternative prescription it accepts under this section, a written 
statement explaining the basis for such prescription, and reason for 
not accepting any alternative prescription under this section. The 
written statement must demonstrate that the Secretary gave equal 
consideration to the effects of the condition adopted and alternatives 
not accepted on energy supply, distribution, cost, and use; flood 
control; navigation; water supply; and air quality (in addition to the 
preservation of other aspects of environmental quality); based on such 
information as may be available to the Secretary, including information 
voluntarily provided in a timely manner by the applicant and others. 
The Secretary shall also submit, together with the aforementioned 
written statement, all studies, data, and other factual information 
available to the Secretary and relevant to the Secretary's decision.
    ``(4) Nothing in this section shall prohibit other interested 
parties from proposing alternative prescriptions.
    ``(5) If the Secretary concerned does not accept an applicant's 
alternative prescription under this section, and the Commission finds 
that the Secretary's prescription would be inconsistent with the 
purposes of this part, or other applicable law, the Commission may 
refer the dispute to the Commission's Dispute Resolution Service. The 
Dispute Resolution Service shall consult with the Secretary and the 
Commission and issue a non-binding advisory within 90 days. The 
Secretary may accept the Dispute Resolution Service advisory unless the 
Secretary finds that the recommendation will not adequately protect the 
fish resources. The Secretary shall submit the advisory and the 
Secretary's final written determination into the record of the 
Commission's proceeding.''.

                   Subtitle B--Additional Hydropower

SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES.

    (a) Incentive Payments.--For electric energy generated and sold by 
a qualified hydroelectric facility during the incentive period, the 
Secretary of Energy (referred to in this section as the ``Secretary'') 
shall make, subject to the availability of appropriations, incentive 
payments to the owner or operator of such facility. The amount of such 
payment made to any such owner or operator shall be as determined under 
subsection (e) of this section. Payments under this section may only be 
made upon receipt by the Secretary of an incentive payment application 
which establishes that the applicant is eligible to receive such 
payment and which satisfies such other requirements as the Secretary 
deems necessary. Such application shall be in such form, and shall be 
submitted at such time, as the Secretary shall establish.
    (b) Definitions.--For purposes of this section:
            (1) Qualified hydroelectric facility.--The term ``qualified 
        hydroelectric facility'' means a turbine or other generating 
        device owned or solely operated by a non-Federal entity which 
        generates hydroelectric energy for sale and which is added to 
        an existing dam or conduit.
            (2) Existing dam or conduit.--The term ``existing dam or 
        conduit'' means any dam or conduit the construction of which 
        was completed before the date of the enactment of this section 
        and which does not require any construction or enlargement of 
        impoundment or diversion structures (other than repair or 
        reconstruction) in connection with the installation of a 
        turbine or other generating device.
            (3) Conduit.--The term ``conduit'' has the same meaning as 
        when used in section 30(a)(2) of the Federal Power Act.
The terms defined in this subsection shall apply without regard to the 
hydroelectric kilowatt capacity of the facility concerned, without 
regard to whether the facility uses a dam owned by a governmental or 
nongovernmental entity, and without regard to whether the facility 
begins operation on or after the date of the enactment of this section.
    (c) Eligibility Window.--Payments may be made under this section 
only for electric energy generated from a qualified hydroelectric 
facility which begins operation during the period of 10 fiscal years 
beginning with the first full fiscal year occurring after the date of 
enactment of this subtitle.
    (d) Incentive Period.--A qualified hydroelectric facility may 
receive payments under this section for a period of 10 fiscal years 
(referred to in this section as the ``incentive period''). Such period 
shall begin with the fiscal year in which electric energy generated 
from the facility is first eligible for such payments.
    (e) Amount of Payment.--
            (1) In general.--Payments made by the Secretary under this 
        section to the owner or operator of a qualified hydroelectric 
        facility shall be based on the number of kilowatt hours of 
        hydroelectric energy generated by the facility during the 
        incentive period. For any such facility, the amount of such 
        payment shall be 1.8 cents per kilowatt hour (adjusted as 
        provided in paragraph (2)), subject to the availability of 
        appropriations under subsection (g), except that no facility 
        may receive more than $750,000 in one calendar year.
            (2) Adjustments.--The amount of the payment made to any 
        person under this section as provided in paragraph (1) shall be 
        adjusted for inflation for each fiscal year beginning after 
        calendar year 2003 in the same manner as provided in the 
        provisions of section 29(d)(2)(B) of the Internal Revenue Code 
        of 1986, except that in applying such provisions the calendar 
        year 2003 shall be substituted for calendar year 1979.
    (f) Sunset.--No payment may be made under this section to any 
qualified hydroelectric facility after the expiration of the period of 
20 fiscal years beginning with the first full fiscal year occurring 
after the date of enactment of this subtitle, and no payment may be 
made under this section to any such facility after a payment has been 
made with respect to such facility for a period of 10 fiscal years.
    (g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary to carry out the purposes of this section 
$10,000,000 for each of the fiscal years 2004 through 2013.

SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT.

    (a) Incentive Payments.--The Secretary of Energy shall make 
incentive payments to the owners or operators of hydroelectric 
facilities at existing dams to be used to make capital improvements in 
the facilities that are directly related to improving the efficiency of 
such facilities by at least 3 percent.
    (b) Limitations.--Incentive payments under this section shall not 
exceed 10 percent of the costs of the capital improvement concerned and 
not more than one payment may be made with respect to improvements at a 
single facility. No payment in excess of $750,000 may be made with 
respect to improvements at a single facility.
    (c) Authorization.--There is authorized to be appropriated to carry 
out this section not more than $10,000,000 for each of the fiscal years 
2004 through 2013.

SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS.

    Section 408(a)(6) of the Public Utility Regulatory Policies Act of 
1978 is amended by striking ``April 20, 1977'' and inserting ``March 4, 
2003''.

SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT EXISTING FEDERAL 
              FACILITIES.

    (a) In General.--The Secretary of Energy, in consultation with the 
Secretary of the Interior and Secretary of the Army, shall conduct 
studies of the cost-effective opportunities to increase hydropower 
generation at existing federally-owned or operated water regulation, 
storage, and conveyance facilities. Such studies shall be completed 
within two years after the date of enactment of this subtitle and 
transmitted to the Committee on Commerce of the House of 
Representatives and the Committee on Energy and Natural Resources of 
the Senate. An individual study shall be prepared for each of the 
Nation's principal river basins. Each such study shall identify and 
describe with specificity the following matters:
            (1) Opportunities to improve the efficiency of hydropower 
        generation at such facilities through, but not limited to, 
        mechanical, structural, or operational changes.
            (2) Opportunities to improve the efficiency of the use of 
        water supplied or regulated by Federal projects where such 
        improvement could, in the absence of legal or administrative 
        constraints, make additional water supplies available for 
        hydropower generation or reduce project energy use.
            (3) Opportunities to create additional hydropower 
        generating capacity at existing facilities through, but not 
        limited to, the construction of additional generating 
        facilities, the uprating of generators and turbines, and the 
        construction of pumped storage facilities.
            (4) Preliminary assessment of the costs and the economic 
        and environmental consequences of such measures.
    (b) Previous Studies.--If studies of the type required by 
subsection (a) have been prepared by any agency of the United States 
and published within the five years prior to the date of enactment of 
this subtitle, the Secretary of Energy may choose not to perform new 
studies and incorporate the information in such studies into the 
studies required by subsection (a).
    (c) Authorization.--There is authorized to be appropriated such 
sums as may be necessary to carry out the purposes of this section.

                       TITLE IV--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

SEC. 4001. SHORT TITLE.

    This subtitle may be cited as the ``Price-Anderson Amendments Act 
of 2003''.

SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY.

    (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
            (1) in the subsection heading, by striking ``Licenses'' and 
        inserting ``Licensees''; and
            (2) by striking ``December 31, 2003'' each place it appears 
        and inserting ``August 1, 2017''.
    (b) Indemnification of Department of Energy Contractors.--Section 
170 d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) 
is amended by striking ``December 31, 2004'' and inserting ``August 1, 
2017''.
    (c) Indemnification of Nonprofit Educational Institutions.--Section 
170 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended 
by striking ``August 1, 2002'' each place it appears and inserting 
``August 1, 2017''.

SEC. 4003. MAXIMUM ASSESSMENT.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended--
            (1) in subsection b.(1), in the second proviso of the third 
        sentence--
                    (A) by striking ``$63,000,000'' and inserting 
                ``$94,000,000''; and
                    (B) by striking ``$10,000,000 in any 1 year'' and 
                inserting ``$15,000,000 in any 1 year (subject to 
                adjustment for inflation under subsection t.)''; and
            (2) in subsection t.--
                    (A) by inserting ``total and annual'' after 
                ``amount of the maximum'';
                    (B) by striking ``the date of the enactment of the 
                Price-Anderson Amendments Act of 1988'' and inserting 
                ``July 1, 2002''; and
                    (C) by striking ``such date of enactment'' and 
                inserting ``July 1, 2002''.

SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT.

    (a) Indemnification of Department of Energy Contractors.--Section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is amended 
by striking paragraph (2) and inserting the following:
    ``(2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
            ``(A) may require the contractor to provide and maintain 
        the financial protection of such a type and in such amounts as 
        the Secretary shall determine to be appropriate to cover public 
        liability arising out of or in connection with the contractual 
        activity; and
            ``(B) shall indemnify the persons indemnified against such 
        liability above the amount of the financial protection 
        required, in the amount of $10,000,000,000 (subject to 
        adjustment for inflation under subsection t.), in the 
        aggregate, for all persons indemnified in connection with the 
        contract and for each nuclear incident, including such legal 
        costs of the contractor as are approved by the Secretary.''.
    (b) Contract Amendments.--Section 170 d. of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(d)) is amended by striking paragraph (3) and 
inserting the following:
    ``(3) All agreements of indemnification under which the Department 
of Energy (or its predecessor agencies) may be required to indemnify 
any person under this section shall be deemed to be amended, on the 
date of enactment of the Price-Anderson Amendments Act of 2003, to 
reflect the amount of indemnity for public liability and any applicable 
financial protection required of the contractor under this 
subsection.''.
    (c) Liability Limit.--Section 170 e.(1)(B) of the Atomic Energy Act 
of 1954 (42 U.S.C. 2210(e)(1)(B)) is amended--
            (1) by striking ``the maximum amount of financial 
        protection required under subsection b. or''; and
            (2) by striking ``paragraph (3) of subsection d., whichever 
        amount is more'' and inserting ``paragraph (2) of subsection 
        d.''.

SEC. 4005. INCIDENTS OUTSIDE THE UNITED STATES.

    (a) Amount of Indemnification.--Section 170 d.(5) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2210(d)(5)) is amended by striking 
``$100,000,000'' and inserting ``$500,000,000''.
    (b) Liability Limit.--Section 170 e.(4) of the Atomic Energy Act of 
1954 (42 U.S.C. 2210(e)(4)) is amended by striking ``$100,000,000'' and 
inserting ``$500,000,000''.

SEC. 4006. REPORTS.

    Section 170 p. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(p)) 
is amended by striking ``August 1, 1998'' and inserting ``August 1, 
2013''.

SEC. 4007. INFLATION ADJUSTMENT.

    Section 170 t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) 
is amended--
            (1) by redesignating paragraph (2) as paragraph (3); and
            (2) by adding after paragraph (1) the following:
    ``(2) The Secretary shall adjust the amount of indemnification 
provided under an agreement of indemnification under subsection d. not 
less than once during each 5-year period following July 1, 2002, in 
accordance with the aggregate percentage change in the Consumer Price 
Index since--
            ``(A) that date, in the case of the first adjustment under 
        this paragraph; or
            ``(B) the previous adjustment under this paragraph.''.

SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR REACTORS.

    Section 170 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(b)) 
is amended by adding at the end the following new paragraph:
    ``(5)(A) For purposes of this section only, the Commission shall 
consider a combination of facilities described in subparagraph (B) to 
be a single facility having a rated capacity of 100,000 electrical 
kilowatts or more.
    ``(B) A combination of facilities referred to in subparagraph (A) 
is 2 or more facilities located at a single site, each of which has a 
rated capacity of 100,000 electrical kilowatts or more but not more 
than 300,000 electrical kilowatts, with a combined rated capacity of 
not more than 1,300,000 electrical kilowatts.''.

SEC. 4009. APPLICABILITY.

    The amendments made by sections 4003, 4004, and 4005 do not apply 
to a nuclear incident that occurs before the date of enactment of this 
Act.

SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED STATES GOVERNMENT OF 
              LIABILITY FOR CERTAIN FOREIGN ACCIDENTS.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended by adding at the end the following new subsection:
    ``u. Prohibition on Assumption of Liability for Certain Foreign 
Accidents.--Notwithstanding this section or any other provision of law, 
no officer of the United States or of any department, agency, or 
instrumentality of the United States Government may enter into any 
contract or other arrangement, or into any amendment or modification of 
a contract or other arrangement, the purpose or effect of which would 
be to directly or indirectly impose liability on the United States 
Government, or any department, agency, or instrumentality of the United 
States Government, or to otherwise directly or indirectly require an 
indemnity by the United States Government, for nuclear accidents 
occurring in connection with the design, construction, or operation of 
a production facility or utilization facility in any country whose 
government has been identified by the Secretary of State as engaged in 
state sponsorship of terrorist activities (specifically including any 
country the government of which, as of September 11, 2001, had been 
determined by the Secretary of State under section 620A(a) of the 
Foreign Assistance Act of 1961, section 6(j)(1) of the Export 
Administration Act of 1979, or section 40(d) of the Arms Export Control 
Act to have repeatedly provided support for acts of international 
terrorism).''.

SEC. 4011. SECURE TRANSFER OF NUCLEAR MATERIALS.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201-2210b) is amended by adding at the end the following new 
section:
    ``Sec. 170C. Secure Transfer of Nuclear Materials.--
    ``a. The Nuclear Regulatory Commission shall establish a system to 
ensure that, with respect to activities by any party pursuant to a 
license issued under this Act--
            ``(1) materials described in subsection b., when 
        transferred or received in the United States--
                    ``(A) from a facility licensed by the Nuclear 
                Regulatory Commission;
                    ``(B) from a facility licensed by an agreement 
                State; or
                    ``(C) from a country with whom the United States 
                has an agreement for cooperation under section 123,
        are accompanied by a manifest describing the type and amount of 
        materials being transferred;
            ``(2) each individual transferring or accompanying the 
        transfer of such materials has been subject to a security 
        background check by appropriate Federal entities; and
            ``(3) such materials are not transferred to or received at 
        a destination other than a facility licensed by the Nuclear 
Regulatory Commission or an agreement State under this Act or other 
appropriate Federal facility, or a destination outside the United 
States in a country with whom the United States has an agreement for 
cooperation under section 123.
    ``b. Except as otherwise provided by the Commission by regulation, 
the materials referred to in subsection a. are byproduct materials, 
source materials, special nuclear materials, high-level radioactive 
waste, spent nuclear fuel, transuranic waste, and low-level radioactive 
waste (as defined in section 2(16) of the Nuclear Waste Policy Act of 
1982 (42 U.S.C. 10101(16))).''.
    (b) Regulations.--Not later than 1 year after the date of the 
enactment of this Act, and from time to time thereafter as it considers 
necessary, the Nuclear Regulatory Commission shall issue regulations 
identifying radioactive materials that, consistent with the protection 
of public health and safety and the common defense and security, are 
appropriate exceptions to the requirements of section 170C of the 
Atomic Energy Act of 1954, as added by subsection (a) of this section.
    (c) Effective Date.--The amendment made by subsection (a) shall 
take effect upon the issuance of regulations under subsection (b).
    (d) Effect on Other Law.--Nothing in this section or the amendment 
made by this section shall waive, modify, or affect the application of 
chapter 51 of title 49, United States Code, part A of subtitle V of 
title 49, United States Code, part B of subtitle VI of title 49, United 
States Code, and title 23, United States Code.
    (e) Table of Sections Amendment.--The table of sections for chapter 
14 of the Atomic Energy Act of 1954 is amended by adding at the end the 
following new item:

``Sec. 170C. Secure transfer of nuclear materials.''.

SEC. 4012. NUCLEAR FACILITY THREATS.

    (a) Study.--The President, in consultation with the Nuclear 
Regulatory Commission and other appropriate Federal, State, and local 
agencies and private entities, shall conduct a study to identify the 
types of threats that pose an appreciable risk to the security of the 
various classes of facilities licensed by the Nuclear Regulatory 
Commission under the Atomic Energy Act of 1954. Such study shall take 
into account, but not be limited to--
            (1) the events of September 11, 2001;
            (2) an assessment of physical, cyber, biochemical, and 
        other terrorist threats;
            (3) the potential for attack on facilities by multiple 
        coordinated teams of a large number of individuals;
            (4) the potential for assistance in an attack from several 
        persons employed at the facility;
            (5) the potential for suicide attacks;
            (6) the potential for water-based and air-based threats;
            (7) the potential use of explosive devices of considerable 
        size and other modern weaponry;
            (8) the potential for attacks by persons with a 
        sophisticated knowledge of facility operations;
            (9) the potential for fires, especially fires of long 
        duration; and
            (10) the potential for attacks on spent fuel shipments by 
        multiple coordinated teams of a large number of individuals.
    (b) Summary and Classification Report.--Not later than 180 days 
after the date of the enactment of this Act, the President shall 
transmit to the Congress and the Nuclear Regulatory Commission a 
report--
            (1) summarizing the types of threats identified under 
        subsection (a); and
            (2) classifying each type of threat identified under 
        subsection (a), in accordance with existing laws and 
        regulations, as either--
                    (A) involving attacks and destructive acts, 
                including sabotage, directed against the facility by an 
                enemy of the United States, whether a foreign 
                government or other person, or otherwise falling under 
                the responsibilities of the Federal Government; or
                    (B) involving the type of risks that Nuclear 
                Regulatory Commission licensees should be responsible 
                for guarding against.
    (c) Federal Action Report.--Not later than 90 days after the date 
on which a report is transmitted under subsection (b), the President 
shall transmit to the Congress a report on actions taken, or to be 
taken, to address the types of threats identified under subsection 
(b)(2)(A). Such report may include a classified annex as appropriate.
    (d) Regulations.--Not later than 270 days after the date on which a 
report is transmitted under subsection (b), the Nuclear Regulatory 
Commission shall issue regulations, including changes to the design 
basis threat, to ensure that licensees address the threats identified 
under subsection (b)(2)(B).
    (e) Physical Security Program.--The Nuclear Regulatory Commission 
shall establish an operational safeguards response evaluation program 
that ensures that the physical protection capability and operational 
safeguards response for sensitive nuclear facilities, as determined by 
the Commission consistent with the protection of public health and the 
common defense and security, shall be tested periodically through 
Commission approved or designed, observed, and evaluated force-on-force 
exercises to determine whether the ability to defeat the design basis 
threat is being maintained. For purposes of this subsection, the term 
``sensitive nuclear facilities'' includes at a minimum commercial 
nuclear power plants, including associated spent fuel storage 
facilities, spent fuel storage pools and dry cask storage at closed 
reactors, independent spent fuel storage facilities and geologic 
repository operations areas, category I fuel cycle facilities, and 
gaseous diffusion plants.
    (f) Control of Information.--In carrying out this section, the 
President and the Nuclear Regulatory Commission shall control the 
dissemination of restricted data, safeguards information, and other 
classified national security information in a manner so as to ensure 
the common defense and security, consistent with chapter 12 of the 
Atomic Energy Act of 1954.

SEC. 4013. UNREASONABLE RISK CONSULTATION.

    Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended by adding at the end the following new subsection:
    ``v. Unreasonable Risk Consultation.--(1) Before entering into an 
agreement of indemnification under this section with respect to a 
utilization facility, the Nuclear Regulatory Commission shall consult 
with the Assistant to the President for Homeland Security (or any 
successor official) concerning whether the location of the proposed 
facility and the design of that type of facility ensure that the 
facility provides for adequate protection of public health and safety 
if subject to a terrorist attack.
    ``(2) Before issuing a license or a license renewal for a sensitive 
nuclear facility, the Nuclear Regulatory Commission shall consult with 
the Secretary of Homeland Security or his designee concerning the 
emergency evacuation plan for the communities living near the sensitive 
nuclear facility. For purposes of this paragraph, the term `sensitive 
nuclear facility' has the meaning given that term in section 4012 of 
the Energy Policy Act of 2003.''.

SEC. 4014. FINANCIAL ACCOUNTABILITY.

    (a) Amendment.--Section 170 of the Atomic Energy Act of 1954 (42 
U.S.C. 2210) is amended by adding at the end the following new 
subsection:
    ``w. Financial Accountability.--(1) Notwithstanding subsection d., 
the Attorney General may bring an action in the appropriate United 
States district court to recover from a contractor of the Secretary (or 
subcontractor or supplier of such contractor) amounts paid by the 
Federal Government under an agreement of indemnification under 
subsection d. for public liability resulting from conduct which 
constitutes intentional misconduct of any corporate officer, manager, 
or superintendent of such contractor (or subcontractor or supplier of 
such contractor).
    ``(2) The Attorney General may recover under paragraph (1) an 
amount not to exceed the amount of the profit derived by the defendant 
from the contract.
    ``(3) No amount recovered from any contractor (or subcontractor or 
supplier of such contractor) under paragraph (1) may be reimbursed 
directly or indirectly by the Department of Energy.
    ``(4) Paragraph (1) shall not apply to any nonprofit entity 
conducting activities under contract for the Secretary.
    ``(5) No waiver of a defense required under this section shall 
prevent a defendant from asserting such defense in an action brought 
under this subsection.
    ``(6) The Secretary shall, by rule, define the terms `profit' and 
`nonprofit entity' for purposes of this subsection. Such rulemaking 
shall be completed not later than 180 days after the date of the 
enactment of this subsection.''.
    (b) Effective Date.--The amendment made by this section shall not 
apply to any agreement of indemnification entered into under section 
170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) before the 
date of the enactment of this Act.

SEC. 4015. CIVIL PENALTIES.

    (a) Repeal of Automatic Remission.--Section 234A b. (2) of the 
Atomic Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by 
striking the last sentence.
    (b) Limitation for Nonprofit Institutions.--Subsection d. of 
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is 
amended to read as follows:
    ``d. Notwithstanding subsection a., a civil penalty for a violation 
under subsection a. shall not exceed the amount of any discretionary 
fee paid under the contract under which such violation occurs for any 
nonprofit contractor, subcontractor, or supplier--
            ``(1) described in section 501(c)(3) of the Internal 
        Revenue Code of 1986 and exempt from tax under section 501(a) 
        of such Code; or
            ``(2) identified by the Secretary by rule as appropriate to 
        be treated the same under this subsection as an entity 
        described in paragraph (1), consistent with the purposes of 
        this section.''.
    (c) Effective Date.--The amendments made by this section shall not 
apply to any violation of the Atomic Energy Act of 1954 occurring under 
a contract entered into before the date of the enactment of this Act.
    (d) Rulemaking.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary of Energy shall issue a rule for 
the implementation of the amendment made by subsection (b).

                   Subtitle B--Miscellaneous Matters

SEC. 4021. LICENSES.

    Section 103 c. of the Atomic Energy Act of 1954 (42 U.S.C. 2133(c)) 
is amended by inserting ``from the authorization to commence 
operations'' after ``forty years''.

SEC. 4022. NUCLEAR REGULATORY COMMISSION MEETINGS.

    If a quorum of the Nuclear Regulatory Commission gathers to discuss 
official Commission business the discussions shall be recorded, and the 
Commission shall notify the public of such discussions within 15 days 
after they occur. The Commission shall promptly make a transcript of 
the recording available to the public on request, except to the extent 
that public disclosure is exempted or prohibited by law. This section 
shall not apply to a meeting, within the meaning of that term under 
section 552b(a)(2) of title 5, United States Code.

SEC. 4023. NRC TRAINING PROGRAM.

    (a) In General.--In order to maintain the human resource investment 
and infrastructure of the United States in the nuclear sciences, health 
physics, and engineering fields, in accordance with the statutory 
authorities of the Commission relating to the civilian nuclear energy 
program, the Nuclear Regulatory Commission shall carry out a training 
and fellowship program to address shortages of individuals with 
critical nuclear safety regulatory skills.
    (b) Authorization of Appropriations.--
            (1) In general.--There are authorized to be appropriated to 
        carry out this section $1,000,000 for each of fiscal years 2004 
        through 2007.
            (2) Availability.--Funds made available under paragraph (1) 
        shall remain available until expended.

SEC. 4024. COST RECOVERY FROM GOVERNMENT AGENCIES.

    Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) 
is amended--
            (1) by striking ``for or is issued'' and all that follows 
        through ``1702'' and inserting ``to the Commission for, or is 
        issued by the Commission, a license or certificate'';
            (2) by striking ``483a'' and inserting ``9701''; and
            (3) by striking ``, of applicants for, or holders of, such 
        licenses or certificates''.

SEC. 4025. ELIMINATION OF PENSION OFFSET.

    Section 161 of the Atomic Energy Act of 1954 (42 U.S.C. 2201) is 
amended by adding at the end the following:
            ``y. exempt from the application of sections 8344 and 8468 
        of title 5, United States Code, an annuitant who was formerly 
        an employee of the Commission who is hired by the Commission as 
a consultant, if the Commission finds that the annuitant has a skill 
that is critical to the performance of the duties of the Commission.''.

SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOYEES.

    Section 161 k. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(k)) 
is amended to read as follows:
            ``k. authorize such of its members, officers, and employees 
        as it deems necessary in the interest of the common defense and 
        security to carry firearms while in the discharge of their 
        official duties. The Commission may also authorize--
                    ``(1) such of those employees of its contractors 
                and subcontractors (at any tier) engaged in the 
                protection of property under the jurisdiction of the 
                United States located at facilities owned by or 
                contracted to the United States or being transported to 
                or from such facilities as it deems necessary in the 
                interests of the common defense and security; and
                    ``(2) such of those employees of persons licensed 
                or certified by the Commission (including employees of 
                contractors of licensees or certificate holders) 
                engaged in the protection of property of (A) facilities 
                owned or operated by a Commission licensee or 
                certificate holder that are designated by the 
                Commission, or (B) property of significance to the 
                common defense and security located at facilities owned 
                or operated by a Commission licensee or certificate 
                holder or being transported to or from such facilities;
        to carry firearms while in the discharge of their official 
        duties. A person authorized to carry firearms under this 
        subsection may, while in the performance of, and in connection 
        with, official duties, make arrests without warrant for any 
        offense against the United States committed in that person's 
        presence or for any felony cognizable under the laws of the 
        United States if that person has reasonable grounds to believe 
        that the individual to be arrested has committed or is 
        committing such felony. An employee of a contractor or 
        subcontractor or of a Commission licensee or certificate holder 
        (or a contractor of a licensee or certificate holder) 
        authorized to carry firearms under this subsection may make 
        such arrests only when the individual to be arrested is within, 
        or in direct flight from, the area of such offense. A person 
        granted authority to make arrests by this subsection may 
        exercise that authority only in the enforcement of laws 
        regarding the property of the United States in the custody of 
        the Department of Energy, the Nuclear Regulatory Commission, or 
        a contractor of the Department of Energy or Nuclear Regulatory 
        Commission or of a licensee or certificate holder of the 
        Commission, laws applicable to facilities owned or operated by 
        a Commission licensee or certificate holder that are designated 
        by the Commission pursuant to this subsection and property of 
        significance to the common defense and security that is in the 
        custody of a licensee or certificate holder or a contractor of 
        a licensee or certificate holder of the Commission, or any 
        provision of this Act that may subject an offender to a fine, 
        imprisonment, or both. The arrest authority conferred by this 
        subsection is in addition to any arrest authority under other 
        laws. The Secretary and the Commission, with the approval of 
        the Attorney General, shall issue guidelines to implement this 
        subsection;''.

SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS WEAPONS.

    Section 229 a. of the Atomic Energy Act of 1954 (42 U.S.C. 
2278a(a)) is amended by adding after ``custody of the Commission'' the 
following: ``or subject to its licensing authority or to certification 
by the Commission under this Act or any other Act''.

SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.

    Section 236 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2284(a)) 
is amended to read as follows:
    ``a. Any person who intentionally and willfully destroys or causes 
physical damage to, or who intentionally and willfully attempts to 
destroy or cause physical damage to--
            ``(1) any production facility or utilization facility 
        licensed under this Act;
            ``(2) any nuclear waste storage, treatment, or disposal 
        facility licensed under this Act;
            ``(3) any nuclear fuel for a utilization facility licensed 
        under this Act or any spent nuclear fuel from such a facility;
            ``(4) any uranium enrichment or nuclear fuel fabrication 
        facility licensed or certified by the Nuclear Regulatory 
        Commission; or
            ``(5) any production, utilization, waste storage, waste 
        treatment, waste disposal, uranium enrichment, or nuclear fuel 
        fabrication facility subject to licensing or certification 
        under this Act during its construction where the destruction or 
        damage caused or attempted to be caused could affect public 
        health and safety during the operation of the facility,
shall be fined not more than $1,000,000 or imprisoned for up to life in 
prison without parole, or both.''.

SEC. 4029. COOPERATIVE RESEARCH AND DEVELOPMENT AND SPECIAL 
              DEMONSTRATION PROJECTS FOR THE URANIUM MINING INDUSTRY.

    (a) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy $10,000,000 for each of fiscal 
years 2004, 2005, and 2006 for--
            (1) cooperative, cost-shared agreements between the 
        Department of Energy and domestic uranium producers to 
        identify, test, and develop improved in situ leaching mining 
        technologies, including low-cost environmental restoration 
        technologies that may be applied to sites after completion of 
        in situ leaching operations; and
            (2) funding for competitively selected demonstration 
        projects with domestic uranium producers relating to--
                    (A) enhanced production with minimal environmental 
                impacts;
                    (B) restoration of well fields; and
                    (C) decommissioning and decontamination activities.
    (b) Domestic Uranium Producer.--For purposes of this section, the 
term ``domestic uranium producer'' has the meaning given that term in 
section 1018(4) of the Energy Policy Act of 1992 (42 U.S.C. 2296b-
7(4)), except that the term shall not include any producer that has not 
produced uranium from domestic reserves on or after July 30, 1998, in 
Colorado, Nebraska, Texas, Utah, or Wyoming.

SEC. 4030. URANIUM SALES.

    (a) Restrictions on Inventory Sales.--Section 3112(d) of the USEC 
Privatization Act (42 U.S.C. 2297h-10(d)) is amended to read as 
follows:
    ``(d) Inventory Sales.--(1) In addition to the transfers and sales 
authorized under subsections (b), (c), and (e), the Secretary of Energy 
or the Secretary of the Army may transfer or sell uranium subject to 
paragraph (2).
    ``(2) Except as provided in subsections (b), (c), and (e), no sale 
or transfer of uranium shall be made under this subsection by the 
Secretary of Energy or the Secretary of the Army unless--
            ``(A) the President determines that the material is not 
        necessary for national security needs;
            ``(B) the price paid to the appropriate Secretary, if the 
        transaction is a sale, will not be less that the fair market 
        value of the material; and
            ``(C) the sale or transfer to end users is made pursuant to 
        a contract of at least 3 years duration.
    ``(3) The Secretary of Energy shall not make any transfer or sale 
of uranium under this subsection that would cause the total amount of 
uranium transferred or sold pursuant to this subsection that is 
delivered for consumption by end users to exceed--
            ``(A) 3 million pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2004, 2005, 2006, 2007, 2008, or 
        2009;
            ``(B) 5 million pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2010 or 2011;
            ``(C) 7 million pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2012; and
            ``(D) 10 million pounds of U<INF>3</INF>O<INF>8</INF> 
        equivalent in fiscal year 2013 or any fiscal year thereafter.
    ``(4) For the purposes of this subsection, the recovery of uranium 
from uranium bearing materials transferred or sold by the Secretary of 
Energy or the Secretary of the Army to the domestic uranium industry 
shall be the preferred method of making uranium available. The 
recovered uranium shall be counted against the annual maximum 
deliveries set for in this section, when such uranium is sold to end 
users.''.
    (b) Transfers to Corporation.--Section 3112 of the USEC 
Privatization Act (42 U.S.C. 2297h-10) is further amended by adding at 
the end the following new subsection:
    ``(g) Transfers to Corporation.--Notwithstanding subsection (b)(2) 
and subsection (d)(2), the Secretary may transfer up to 9,550 metric 
tons of uranium to the Corporation to replace uranium that the 
Secretary transferred to the Corporation on or about June 30, 1993, 
April 20, 1998, and May 18, 1998, and that does not meet commercial 
specifications.''.
    (c) Services.--Section 3112 of the USEC Privatization Act (42 
U.S.C. 2297h-10) is further amended by adding at the end the following 
new subsection:
    ``(h) Services.--(1) Notwithstanding any other provision of this 
section, if the Secretary determines that if the Corporation has 
failed, or may fail, to perform any obligation under the Agreement 
between the Department of Energy and the Corporation dated June 17, 
2002, and as amended thereafter, which failure could result in 
termination of the Agreement, the Secretary shall notify the Committee 
on Energy and Commerce of the House of Representatives and the 
Committee on Energy and Natural Resources of the Senate, in such a 
manner that affords the Committees an opportunity to comment, prior to 
a determination by the Secretary whether termination, waiver, or 
modification of the Agreement is required. The Secretary is authorized 
to take such action as he determines necessary under the Agreement to 
terminate, waive, or modify provisions of the Agreement to achieve its 
purposes.
    ``(2) Notwithstanding any other provision of this section, if the 
Secretary determines in accordance with Article 2D of the Agreement 
between the Department of Energy and the Corporation dated June 17, 
2002, and as amended thereafter, to transition operation of the Paducah 
gaseous diffusion plant, the Secretary may provide uranium enrichment 
services in a manner consistent with Article 2D of such Agreement.''.
    (d) Report.--Within 3 years after the date of enactment of this 
Act, the Secretary shall report to the Congress on the implementation 
of this section. The report shall include a discussion of available 
excess uranium inventories, all sales or transfers made by the 
Secretary of Energy or the Secretary of the Army, the impact of such 
sales or transfers on the domestic uranium industry, the spot market 
uranium price, and the national security interests of the United 
States, and any steps taken to remediate any adverse impacts of such 
sales or transfers.

SEC. 4031. MEDICAL ISOTOPE PRODUCTION.

    Section 134 of the Atomic Energy Act of 1954 (42 U.S.C. 2160d) is 
amended--
            (1) by redesignating subsection b. as subsection f.;
            (2) by inserting after subsection a. the following:
    ``b. The Commission may issue a license authorizing the export 
(including shipment to and use at intermediate and ultimate consignees 
specified in the license) to a Recipient Country of highly enriched 
uranium for medical isotope production if, in addition to any other 
requirements of this Act, the Commission determines that--
            ``(1) a Recipient Country that supplies an assurance letter 
        to the United States Government in connection with the 
        Commission's consideration of the export license application 
        has informed the United States Government that any intermediate 
        consignees and the ultimate consignee specified in the 
        application are required to use such highly enriched uranium 
        solely to produce medical isotopes; and
            ``(2) the highly enriched uranium for medical isotope 
        production will be irradiated only in a reactor in a Recipient 
        Country that--
                    ``(A) uses an alternative nuclear reactor fuel; or
                    ``(B) is the subject of an agreement with the 
                United States Government to convert to an alternative 
                nuclear reactor fuel when such fuel can be used in that 
                reactor.
    ``c. Applications to the Commission for licenses authorizing the 
export to a Recipient Country of highly enriched uranium for medical 
isotope production shall be subject to subsection b., and subsection a. 
shall not be applicable to such exports.
    ``d. The Commission is authorized to specify, by rulemaking or 
decision in connection with an export license application, that a 
country other than a Recipient Country may receive exports of highly 
enriched uranium for medical isotope production in accordance with the 
same criteria established by subsection b. for exports to a Recipient 
Country, upon the Commission's finding that such additional country is 
a party to the Treaty on the Nonproliferation of Nuclear Weapons and 
the Convention on the Physical Protection of Nuclear Material and will 
receive such highly enriched uranium pursuant to an agreement with the 
United States concerning peaceful uses of nuclear energy.
    ``e. The Commission shall review the adequacy of physical 
protection requirements that are currently applicable to the 
transportation of highly enriched uranium for medical isotope 
production. If it determines that additional physical protection 
measures are necessary, including any limits that the Commission finds 
are necessary on the quantity of highly enriched uranium contained in a 
single shipment for medical isotope production, the Commission shall 
impose such requirements, as license conditions or through other 
appropriate means.''; and
            (3) in subsection f., as so redesignated by paragraph (1) 
        of this section--
                    (A) by striking ``and'' at the end of paragraph 
                (2);
                    (B) by striking the period at the end of paragraph 
                (3)(B) and inserting a semicolon; and
                    (C) by adding at the end the following:
            ``(4) the term `medical isotopes' means radioactive 
        isotopes, including Molybdenum 99, Iodine 131, and Xenon 133, 
        that are used to produce radiopharmaceuticals for diagnostic or 
        therapeutic procedures on patients, or in connection with 
        research and development of radiopharmaceuticals;
            ``(5) the term `highly enriched uranium for medical isotope 
        production' means highly enriched uranium contained in, or for 
        use in, targets to be irradiated for the sole purpose of 
        producing medical isotopes;
            ``(6) the term `radiopharmaceuticals' means radioactive 
        isotopes containing byproduct material combined with chemical 
        or biological material that are designed to accumulate 
        temporarily in a part of the body, for therapeutic purposes or 
        for enabling the production of a useful image of the 
        appropriate body organ or function for use in diagnosis of 
        medical conditions; and
            ``(7) the term `Recipient Country' means Canada, Belgium, 
        France, Germany, and the Netherlands.''.

SEC. 4032. HIGHLY ENRICHED URANIUM DIVERSION THREAT REPORT.

    Section 307 of the Energy Reorganization Act of 1974 (42 U.S.C. 
5877) is amended by adding at the end the following new subsection:
    ``(d) Not later than 6 months after the date of the enactment of 
this Act, the Secretary of Energy shall transmit to the Congress a 
report with recommendations on reducing the threat resulting from the 
theft or diversion of highly enriched uranium. Such report shall 
address--
            ``(1) monitoring of highly enriched uranium supplies at any 
        commercial companies who have access to substantial amounts of 
        highly enriched uranium;
            ``(2) assistance to companies described in paragraph (1) 
        with security and personnel checks;
            ``(3) acceleration of the process of blending down excess 
        highly enriched uranium into low-enriched uranium;
            ``(4) purchasing highly enriched uranium (except for 
        production of medical isotopes);
            ``(5) paying the cost of shipping highly enriched uranium;
            ``(6) accelerating the conversion of commercial research 
        reactors and energy reactors to the use of low-enriched uranium 
        fuel where they now use highly enriched uranium fuel; and
            ``(7) minimizing, and encouraging transparency in, the 
        further enrichment of low-enriched uranium to highly enriched 
        uranium.''.

SEC. 4033. WHISTLEBLOWER PROTECTION.

    (a) Definition of Employer.--Section 211(a)(2) of the Energy 
Reorganization Act of 1974 (42 U.S.C. 5851(a)(2)) is amended--
            (1) by striking ``and'' at the end of subparagraph (C);
            (2) in subparagraph (D), by striking ``that is 
        indemnified'' and all that follows through ``12344.'' and 
        inserting ``or the Commission; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(E) the Department of Energy and the Commission.''.
    (b) De Novo Review.--Subsection (b) of such section 211 is amended 
by adding at the end the following new paragraph:
    ``(4) If the Secretary has not issued a final decision within 180 
days after the filing of a complaint under paragraph (1), and there is 
no showing that such delay is due to the bad faith of the claimant, the 
claimant may bring an action at law or equity for de novo review in the 
appropriate district court of the United States, which shall have 
jurisdiction over such an action without regard to the amount in 
controversy.''.

                      TITLE V--VEHICLES AND FUELS

                Subtitle A--Energy Policy Act Amendments

SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TOWARD NONCOVERED 
              FLEETS.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended by adding at the end the following new subsection:
    ``(e) Credit for Substantial Contribution Toward Use of Dedicated 
Vehicles in Noncovered Fleets.--
            ``(1) Definitions.--In this subsection:
                    ``(A) Medium or heavy duty vehicle.--The term 
                `medium or heavy duty vehicle' means a dedicated 
                vehicle that--
                            ``(i) in the case of a medium duty vehicle, 
                        has a gross vehicle weight rating of more than 
                        8,500 pounds but not more than 14,000 pounds; 
                        or
                            ``(ii) in the case of a heavy duty vehicle, 
                        has a gross vehicle weight rating of more than 
                        14,000 pounds.
                    ``(B) Substantial contribution.--The term 
                `substantial contribution' means not less than $15,000 
                in cash or in kind services, as determined by the 
                Secretary.
            ``(2) Allocation of credits.--The Secretary shall allocate 
        a credit to a fleet or covered person under this section if the 
        fleet or person makes a substantial contribution toward the 
        acquisition and use of dedicated vehicles or neighborhood 
        electric vehicles by a person that owns, operates, leases, or 
        otherwise controls a fleet that is not covered by this title.
            ``(3) Multiple credits for medium and heavy duty 
        vehicles.--The Secretary shall issue 2 full credits to a fleet 
        or covered person under this section if the fleet or person 
        makes a substantial contribution toward the acquisition and use 
        of a medium or heavy duty vehicle.
            ``(4) Use of credits.--At the request of a fleet or covered 
        person allocated a credit under this subsection, the Secretary 
        shall, for the year in which the acquisition of the dedicated 
        vehicle or neighborhood electric vehicle is made, treat that 
        credit as the acquisition of 1 alternative fueled vehicle that 
        the fleet or covered person is required to acquire under this 
        title.
            ``(5) Limitation.--Except as provided in paragraph (3), no 
        more than 1 credit shall be allocated under this subsection for 
        each vehicle.''.

SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUCTURE.

    Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258), as 
amended by this Act, is further amended by adding at the end the 
following new subsection:
    ``(f) Credit for Investment in Alternative Fuel Infrastructure.--
            ``(1) Definition.--In this subsection, the term `qualifying 
        infrastructure' means--
                    ``(A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                    ``(B) facilities or equipment required to maintain, 
                repair, or operate alternative fueled vehicles;
                    ``(C) training programs, educational materials, or 
                other activities necessary to provide information 
                regarding the operation, maintenance, or benefits 
                associated with alternative fueled vehicles; and
                    ``(D) such other activities the Secretary considers 
                to constitute an appropriate expenditure in support of 
                the operation, maintenance, or further widespread 
                adoption of or utilization of alternative fueled 
                vehicles.
            ``(2) Allocation of credits.--The Secretary shall allocate 
        a credit to a fleet or covered person under this section for 
        investment in qualifying infrastructure if the qualifying 
        infrastructure is open to the general public during regular 
        business hours.
            ``(3) Amount.--For the purposes of credits under this 
        subsection--
                    ``(A) 1 credit shall be equal to a minimum 
                investment of $25,000 in cash or in kind services, as 
                determined by the Secretary; and
                    ``(B) except in the case of a Federal or State 
                fleet, no part of the investment may be provided by 
                Federal or State funds.
            ``(4) Use of credits.--At the request of a fleet or covered 
        person allocated a credit under this subsection, the Secretary 
        shall, for the year in which the investment is made, treat that 
        credit as the acquisition of 1 alternative fueled vehicle that 
        the fleet or covered person is required to acquire under this 
        title.''.

SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT.

    (a) Definitions.--In this section:
            (1) Alternative fuel.--The term ``alternative fuel'' has 
        the meaning given the term in section 301 of the Energy Policy 
        Act of 1992 (42 U.S.C. 13211).
            (2) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' has the meaning given the term in section 301 
        of the Energy Policy Act of 1992 (42 U.S.C. 13211).
            (3) Light duty motor vehicle.--The term ``light duty motor 
        vehicle'' has the meaning given the term in section 301 of the 
        Energy Policy Act of 1992 (42 U.S.C. 13211).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.
    (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary shall submit to Congress a report on the effect 
that titles III, IV, and V of the Energy Policy Act of 1992 have had on 
the development of alternative fueled vehicle technology, the 
availability of alternative fueled vehicles in the market, the cost of 
light duty motor vehicles that are alternative fueled vehicles, and the 
availability, cost, and use of alternative fuels and biodiesel. Such 
report shall include any recommendations of the Secretary for 
legislation concerning the alternative fueled vehicle requirements 
under the Energy Policy Act of 1992, and shall examine, discuss, and 
determine the following:
            (1) The number of alternative fueled vehicles acquired by 
        fleets or covered persons required to acquire alternative 
        fueled vehicles.
            (2) The extent to which fleets subject to alternative 
        fueled vehicle acquisition requirements have met those 
        requirements through the use of fuel mixtures that contain at 
        least 20 percent biodiesel pursuant to section 312 of the 
        Energy Policy Act of 1992 (42 U.S.C. 13220).
            (3) The amount of alternative fuel used in alternative 
        fueled vehicles acquired by fleets required to acquire 
        alternative fueled vehicles under the Energy Policy Act of 
        1992.
            (4) The amount of petroleum displaced by the use of 
        alternative fueled vehicles acquired by fleets or covered 
        persons.
            (5) The cost of compliance with vehicle acquisition 
        requirements under the Energy Policy Act of 1992, and the 
        benefits of using such fuel and vehicles.
            (6) Projections of the amount of biodiesel, the number of 
        alternative fueled vehicles, and the amount of alternative fuel 
        that will be used over the next decade by fleets required to 
        acquire alternative fueled vehicles under the Energy Policy Act 
        of 1992.
            (7) The existence of any obstacles to increased use of 
        alternative fuel and biodiesel in vehicles acquired or 
        maintained by fleets required to acquire alternative fueled 
        vehicles under the Energy Policy Act of 1992, and the benefits 
        of using such fuel and vehicles.

SEC. 5014. ALLOCATION OF INCREMENTAL COSTS.

    Section 303(c) of the Energy Policy Act of 1992 (42 U.S.C. 
13212(c)) is amended by striking ``may'' and inserting ``shall''.

            Subtitle B--FreedomCAR and Hydrogen Fuel Program

SEC. 5021. SHORT TITLE.

    This subtitle may be cited as the ``FreedomCAR and Hydrogen Fuel 
Act of 2003'' or ``Freedom Act''.

SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS.

    (a) Findings.--Congress finds that--
            (1) the United States is currently dependent on foreign 
        sources for a majority of its petroleum supply;
            (2) the Nation's dependence on foreign petroleum is 
        expected to increase in the decades ahead;
            (3) it is in the national interest to reduce dependence on 
        imported petroleum by accelerating Federal efforts to partner 
        with the private sector by deploying hydrogen fuel cell 
        vehicles and the refueling infrastructure to support those 
        vehicles;
            (4) it is in the national interest to develop a light duty 
        vehicle fleet that substantially reduces dependence on foreign 
        petroleum, assists the Nation in meeting its requirements under 
        the Clean Air Act and reduces greenhouse gas emissions in a 
        manner that maintains the freedom of consumers to purchase the 
        kinds of vehicles they wish to drive and the freedom to refuel 
        those vehicles safely, affordably, and conveniently;
            (5) hydrogen fuel cell vehicles and supporting 
        infrastructure have the potential to accelerate the parallel 
        advancement of fuel cells for stationary power that will 
        enhance the resiliency, reliability, and environmental 
        performance of the Nation's electricity infrastructure;
            (6) ancillary benefits for the Nation, including the 
        acceleration of fuel cell technology for consumer electronics 
        and portable power, are likely to result from the advancement 
        of hydrogen fuel cell vehicles and supporting infrastructure;
            (7) there is a need for deployment of bridging technologies 
        including gasoline electric and diesel electric hybrid drive 
        systems, advanced combustion engines including clean diesel, 
        electric battery, and power electronics, and alternative fuels 
        and other technology that can contribute to reducing petroleum 
        demand and decreasing air emissions;
            (8) low-cost hydrogen production, storage, and delivery 
        facilities are essential to the success of the FreedomCAR 
        Vehicle Programs; and
            (9) work should be performed in a manner that is cognizant 
        of consumer acceptance, passenger safety, and marketplace 
        success.
    (b) Purpose.--The purpose of this subtitle is to reduce 
significantly the Nation's dependence on imported petroleum, enhance 
the production and conservation of energy, and reduce air emissions 
through support of the following Department of Energy actions:
            (1) Programs and activities leading to--
                    (A) a commitment by automakers and hydrogen energy 
                and energy infrastructure providers no later than year 
                2015 to offer safe, affordable, and technically viable 
                hydrogen fuel cell vehicles and refueling 
                infrastructure in the mass consumer market; and
                    (B) a commitment by the automakers and hydrogen 
                energy and energy infrastructure providers to the 
                deployment of hydrogen fuel cell vehicles and 
                affordable and convenient refueling infrastructure no 
                later than year 2020.
            (2) A program to establish international codes, standards, 
        and safety protocols for the use and manufacture of domestic 
        and foreign products.
            (3) Interagency, intergovernmental, and international 
        programs and activities for education, information exchange, 
        and cooperation.
    (c) Definitions.--In this subtitle:
            (1) The term ``Advisory Committee'' means the Hydrogen 
        Technical and Fuel Cell Advisory Committee established under 
        section 5028 of this Act.
            (2) The term ``Department'' means the Department of Energy.
            (3) The term ``FreedomCAR'' is the acronym for a Department 
        initiative in automotive research and development entitled 
        ``Freedom Cooperative Automotive Research''.
            (4) The term ``fuel cell'' means a device that directly 
        converts the chemical energy of a fuel and an oxidant into 
        electricity by an electrochemical process taking place at 
        separate electrodes in the device.
            (5) The term ``infrastructure'' means the equipment, 
        systems, or facilities used to produce, distribute, deliver, or 
        store hydrogen and other advanced clean fuels.
            (6) The term ``light duty vehicle'' means a car or truck, 
        classified by the Department of Transportation as a Class I or 
        IIA vehicle.
            (7) The term ``Secretary'' means the Secretary of Energy.

SEC. 5023. PLAN; REPORT.

    (a) Plan.--The Secretary, in consultation with other appropriate 
Federal agencies, shall prepare a comprehensive interagency 
coordination plan for activities under this subtitle. This plan may be 
provided as part of the President's annual budget submission to 
Congress.
    (b) Report.--Not later than one year after the date of enactment of 
this subtitle, and biennially thereafter, the Secretary shall transmit 
to the Congress a report on the status of programs and activities under 
this subtitle. This report may be provided as part of the President's 
annual budget submission to Congress. This report may include, in 
addition to any views and recommendations of the Secretary--
            (1) an assessment of the effectiveness of the programs and 
        activities under this subtitle and the extent to which the 
        purposes in section 5022(b) have been met; and
            (2) the potential for interagency, intergovernmental, 
        international, or private sector collaboration opportunities 
        and activities under this subtitle.-

SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP.

    (a) Program.--In partnership with the private sector, the Secretary 
shall conduct a program designed to facilitate the production and 
conservation of energy and the deployment of energy infrastructure, 
including all of the following:
            (1) Hydrogen energy.
            (2) Fuel cells.
            (3) Advanced vehicle technologies.
            (4) Clean fuels in addition to hydrogen.
            (5) Codes, standards, and safety protocols.-
    (b) Program Goals.--
            (1) Automakers.--For automakers the goals of the program 
        are--
                    (A) to enable a commitment by automakers no later 
                than year 2015 to offer safe, affordable, and 
                technically viable hydrogen fuel cell vehicles into 
                commerce; and
                    (B) to enable production, delivery, and acceptance 
                by consumers of model year 2020 hydrogen fuel cell and 
                other vehicles that will have--
                            (i) a range of at least three hundred 
                        miles;
                            (ii) improved performance and ease of 
                        driving;
                            (iii) met all light duty safety regulations 
                        created under section 30111 of title 49, United 
                        States Code; and
                            (iv) when compared to light duty vehicles 
                        in model year 2003--
                                    (I) a fuel economy that is two and 
                                one half times the equivalent fuel 
                                economy of these vehicles as regulated 
                                under the Motor Vehicle Information and 
                                Cost Savings Act, or about 70 miles per 
                                gallon, and
                                    (II) near zero emissions of air 
                                pollutants regulated under the Clean 
                                Air Act.
            (2) Hydrogen energy and energy infrastructure.--For 
        hydrogen energy and energy infrastructure the goals of the 
        program include, but are not limited to, a commitment not later 
        than 2015 that will enable the deployment by 2020 of 
        infrastructure to provide--
                    (A) safe and convenient refueling;
                    (B) activities leading to widespread availability 
                of hydrogen from domestic energy sources through--
                            (i) production, including consideration of 
                        cost-effective production from domestic energy 
                        sources;
                            (ii) delivery, including transmission by 
                        pipeline and other distribution methods for 
                        hydrogen; and
                            (iii) storage, including storage in surface 
                        transportation vehicles;
                    (C) hydrogen for fuel cells, internal combustion 
                engines, and other energy conversion devices for 
                portable, stationary, and transportation applications; 
                and
                    (D) other technologies consistent with the 
                Department's plan.
            (3) Fuel cells.--The program for fuel cells and their 
        portable, stationary, and transportation applications may 
        include, but is not limited to--
                    (A) a safe, economical, and environmentally sound 
                hydrogen fuel cell;
                    (B) a fuel cell for light duty and other vehicles; 
                and
                    (C) other technologies consistent with the 
                Department's plan.
            (4) Advanced Vehicle Technologies.--The program for 
        advanced vehicle technologies may include, but is not limited 
        to--
                    (A) advanced combustion;
                    (B) materials;
                    (C) energy storage;
                    (D) control systems; and
                    (E) other technologies consistent with the 
                Department's plan.
            (5) Codes, Standards, and Safety Protocols.--(A) The 
        Department's program for codes, standards, and safety protocols 
        shall strive towards establishment of international codes, 
        standards, and safety protocols for the use and manufacture of 
        domestic and foreign products.
            (B) The Secretary may represent the United States interests 
        with respect to activities and programs under this subsection, 
        collaborating with the Secretary of Transportation, and in 
        consultation with other appropriate governments and 
        nongovernmental organizations including the following:
                    (i) Other Federal, State, regional, and local 
                governments and their representatives.
                    (ii) Industry and its representatives, including 
                members of the energy and transportation industries.
                    (iii) Foreign governments and their representatives 
                including international organizations.
    (c) Federal Funding.--(1) The Secretary shall carry out the 
programs and activities under this section consistent with the 
generally applicable Federal laws and regulations governing awards of 
financial assistance, contracts, or other agreements, and may include 
funding to nationally recognized university-based research centers.
    (2) The Secretary shall endeavor to avoid duplication or 
displacement of other research and development programs and activities.
    (d) Cost Sharing.--(1) The Secretary shall require a commitment 
from non-Federal sources of at least 20 percent of the cost of proposed 
programs under this section.
    (2) The Secretary may reduce or eliminate the cost sharing 
requirement under paragraph (1)--
            (A) if the Secretary determines that the activity is of a 
        basic or fundamental nature which is vital to the success of 
        the program and unlikely to occur in a timely manner without 
        reduction or elimination of the cost-sharing requirement; or
            (B) for technical analyses, outreach programs, and other 
        activities including educational programs under section 5027 of 
        this subtitle that the Secretary does not expect to result in a 
        marketable product.

SEC. 5025. DEPLOYMENT.

    (a) Deployment Program.--In partnership with the private sector, 
the Secretary shall conduct a program to facilitate the deployment of--
            (1) hydrogen energy and energy infrastructure;
            (2) fuel cells;
            (3) advanced vehicle technologies;
            (4) clean fuels in addition to hydrogen; and
            (5) codes, standards, and safety protocols.-
    (b) Program Goals.--(1) For automakers, the goals of the program 
are--
            (A) to enable a decision by automakers no later than year 
        2015 to offer safe, affordable, and technically viable hydrogen 
        fuel cell vehicles into commerce; and
            (B) to enable production and delivery to, and acceptance 
        by, consumers of model year 2020 hydrogen fuel cell and other 
        vehicles that will have--
                    (i) a range of at least 300 miles;
                    (ii) improved performance and ease of driving;
                    (iii) met all light duty safety regulations created 
                under section 30111 of title 49, United States Code; 
                and
                    (iv) when compared to light duty vehicles in model 
                year 2003--
                            (I) a fuel economy that is two and one half 
                        times the equivalent fuel economy of these 
                        vehicles under the Motor Vehicle Information 
                        and Cost Savings Act, or about 70 miles per 
                        gallon; and
                            (II) near zero emissions of air pollutants 
                        regulated under the Clean Air Act.
    (2) For hydrogen energy and energy infrastructure the goals of the 
program include, but are not limited to, a commitment not later than 
2015 that will enable the deployment by 2020 of infrastructure to 
provide--
            (A) safe, convenient, and affordable refueling;
            (B) widespread availability of hydrogen from domestic 
        energy sources through--
                    (i) production, including consideration of cost-
                effective production from domestic energy sources;
                    (ii) delivery, including transmission by pipeline 
                and other distribution methods, for hydrogen in its 
                gaseous, liquid, and solid states; and
                    (iii) storage, including storage in surface 
                transportation vehicles;
            (C) hydrogen for fuel cells, internal combustion engines, 
        and other energy conversion devices for portable, stationary, 
        and transportation applications; and
            (D) other technologies consistent with the Department's 
        plan.
    (c) Fuel Cells.--The program for fuel cells and their portable, 
stationary, and transportation applications may include but is not 
limited to--
            (1) a safe, economical, and environmentally sound hydrogen 
        fuel cell;
            (2) a fuel cell for light duty and other vehicles; and
            (3) other technologies consistent with the Department's 
        plan.
    (d) Advanced Vehicle Technologies.--The program for advanced 
vehicle technologies may include, but is not limited to--
            (1) advanced combustion;
            (2) materials;
            (3) energy storage;
            (4) control systems; and
            (5) other technologies consistent with the Department's 
        plan.
    (e) Federal Funding.--The Secretary shall carry out the program and 
activities under this section consistent with laws and regulations 
governing awards of financial assistance, contracts or other 
agreements, and may include funding to nationally recognized 
university-based research centers. The Secretary shall endeavor to 
avoid duplication or displacement of other programs.
    (f) Cost Sharing.--
            (1) In general.--The Secretary shall require a commitment 
        from non-Federal sources of at least 50 percent of the costs 
        directly relating to a demonstration under this section.
            (2) Reduction.--The Secretary may reduce the non-Federal 
        requirement under paragraph (1) if the Secretary determines 
        that--
                    (A) the reduction is appropriate considering the 
                technological risks involved; and
                    (B) the terms and conditions are consistent with 
                the Agreement on Subsidies and Countervailing Measures.
            (3) Cooperative agreements with governments.--The Secretary 
        may enter into cooperative and cost sharing agreements with 
        Federal, State, or local governments to deploy vehicles, 
        vehicle systems, and refueling infrastructure using hydrogen, 
        fuel cells, or other advanced technologies in government 
        facilities or fleet transportation systems.

SEC. 5026. ASSESSMENT AND TRANSFER.

    (a) Program.--The Secretary may conduct a program to transfer 
technology to the private sector under this subtitle.
    (b) Disclosure.--The Secretary may protect from disclosure, for up 
to 5 years after the information was developed, any information 
developed pursuant to a cost shared transaction, or subagreement 
thereunder, entered into under this subtitle to advance the goals of 
the programs, which developed information is of a character that it 
would be protected from disclosure under section 552(b)(4) of title 5, 
United States Code, if this developed information had been obtained 
from a person other than a Federal agency.

SEC. 5027. INTERAGENCY TASK FORCE.

    (a) Establishment.--Not later than 120 days after the date of 
enactment of this Act, the President shall establish an interagency 
task force chaired by the Secretary or his designee with 
representatives from each of the following:
            (1) The Office of Science and Technology Policy within the 
        Executive Office of the President.
            (2) The Department of Transportation.
            (3) The Department of Defense.
            (4) The Department of Commerce (including the National 
        Institute of Standards and Technology).
            (5) The Environmental Protection Agency.
            (6) The National Aeronautics and Space Administration.
            (7) Other Federal agencies as the Secretary determines 
        appropriate.
    (b) Duties of the Interagency Task Force.--
            (1) Planning.--The task force shall coordinate the 
        implementation of the interagency plan in section 5023(a), and 
        work towards deployment of--
                    (A) a safe, economical, and environmentally sound 
                fuel infrastructure, including an infrastructure that 
                supports buses and other fleet transportation;
                    (B) fuel cells in government and other 
                applications, including portable, stationary, and 
                transportation applications; and
                    (C) distributed power generation, including the 
                generation of combined heat, power, and clean fuels 
                including hydrogen.
            (2) Information exchange.--(A) The interagency task force 
        shall coordinate interagency programs and activities including 
        the exchange of information.
            (B) The heads of all agencies, including those whose 
        agencies are not represented on the interagency task force, 
        shall cooperate with and furnish information to the interagency 
        task force, the Advisory Committee, and the Department.
            (C) The information exchange may consist of workshops, 
        publications, conferences, and a database for use by the public 
        and private sectors. The interagency task force is expected 
        to--
                    (i) foster the exchange of generic, nonproprietary 
                information and technology among industry, academia, 
                and government;
                    (ii) update the inventory and assessment of 
                hydrogen, fuel cells, and other advanced technologies, 
                including their commercial capability for the economic 
                and environmentally safe production, distribution, 
                delivery, storage, and use of clean fuels including 
                hydrogen;
                    (iii) integrate technical and other information 
                made available as a result of the programs and 
                activities under this subtitle;
                    (iv) promote the marketplace introduction of 
                infrastructure for hydrogen and other clean fuel 
                vehicles; and
                    (v) conduct an education program to provide 
                FreedomCAR and hydrogen fuel information to potential 
                end-users.

SEC. 5028. ADVISORY COMMITTEE.

    (a) Establishment.--The Hydrogen Technical and Fuel Cell Advisory 
Committee is established to advise the Secretary on the programs and 
activities under this subtitle.
    (b) Membership.--
            (1) Members.--The Advisory Committee is comprised of not 
        fewer than 12 nor more than 25 members. These members shall be 
        appointed by the Secretary to represent domestic industry, 
        academia, professional societies, government agencies, and 
        financial, environmental, and other appropriate organizations 
        based on the Department's assessment of the technical and other 
        qualifications of committee members and the needs of the 
        Advisory Committee.
            (2) Terms.--The term of a member of the Advisory Committee 
        shall not be more than 3 years. The Secretary may appoint 
        members of the Advisory Committee in a manner that allows the 
        terms of the members serving at any time to expire at spaced 
        intervals so as to ensure continuity in the functioning of the 
        Advisory Committee. A member of the Advisory Committee whose 
        term is expiring may be reappointed.
            (3) Chairperson.--The Advisory Committee shall have a 
        chairperson, who is elected by the members from among their 
        number.
    (c) Review.--The Advisory Committee shall review and make 
recommendations to the Secretary on--
            (1) the implementation of programs and activities under 
        this subtitle;
            (2) the safety, economical, and environmental consequences 
        of technologies for the production, distribution, delivery, 
        storage, or use of hydrogen energy and fuel cells; and
            (3) the interagency coordination plan under section 5023(a) 
        of this Act.
    (d) Response to Recommendations.--The Secretary shall consider, but 
need not adopt, any recommendations of the Advisory Committee under 
subsection (c).
    (e) Advisory Committee Support.--The Secretary shall provide 
resources necessary in the judgment of the Secretary for the Advisory 
Committee to carry out its responsibilities under this subtitle.

SEC. 5029. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the purposes 
of this subtitle including programs for light duty vehicles, in 
addition to any amounts made available for these purposes under other 
Acts--
            (1) $273,500,000 for fiscal year 2004;
            (2) $325,000,000 for fiscal year 2005;
            (3) $375,000,000 for fiscal year 2006;
            (4) $400,000,000 for fiscal year 2007; and
            (5) $425,000,000 for fiscal year 2008.

SEC. 5030. FUEL CELL PROGRAM AT NATIONAL PARKS.

    The Secretary of Energy, in cooperation with the Secretary of 
Interior and the National Park Service, is authorized to establish a 
program to provide matching funds to assist in the deployment of fuel 
cells at one or more prominent National Parks. The Secretary of Energy 
shall transmit to Congress within 1 year, and annually thereafter, a 
report describing any activities taken pursuant to such program. The 
report shall address whether activities taken pursuant to such program 
reduce the environmental impacts of energy use at National Parks. There 
are authorized to be appropriated $2,000,000 for each of fiscal years 
2004 through 2010 to carry out the purposes of this section.

SEC. 5030A. ADVANCED POWER SYSTEM TECHNOLOGY INCENTIVE PROGRAM.

    (a) Program.--The Secretary of Energy is authorized to establish an 
Advanced Power System Technology Incentive Program to support the 
deployment of certain advanced power system technologies and to improve 
and protect certain critical governmental, industrial, and commercial 
processes. Funds provided under this section shall be used by the 
Secretary to make incentive payments to eligible owners or operators of 
advanced power system technologies to increase power generation through 
enhanced operational, economic, and environmental performance. Payments 
under this section may only be made upon receipt by the Secretary of an 
incentive payment application establishing an applicant as either--
            (1) a qualifying advanced power system technology facility; 
        or
            (2) a qualifying security and assured power facility.
    (b) Incentives.--Subject to availability of funds, a payment of 1.8 
cents per kilowatt-hour shall be paid to the owner or operator of a 
qualifying advanced power system technology facility under this section 
for electricity generated at such facility. An additional 0.7 cents per 
kilowatt-hour shall be paid to the owner or operator of a qualifying 
security and assured power facility for electricity generated at such 
facility. Any facility qualifying under this section shall be eligible 
for an incentive payment for up to, but not more than, the first 
10,000,000 kilowatt-hours produced in any fiscal year.
    (c) Eligibility.--For purposes of this section--
            (1) the term ``qualifying advanced power system technology 
        facility'' means a facility using an advanced fuel cell, 
        turbine, or hybrid power system or power storage system to 
        generate or store electric energy; and
            (2) the term ``qualifying security and assured power 
        facility'' means a qualifying advanced power system technology 
        facility determined by the Secretary of Energy, in consultation 
        with the Secretary of Homeland Security, to be in critical need 
        of secure, reliable, rapidly available, high-quality power for 
        critical governmental, industrial, or commercial applications.
    (d) Authorization.--There are authorized to be appropriated to the 
Secretary of Energy for the purposes of this section, $10,000,000 for 
each of the fiscal years 2004 through 2010.

                     Subtitle C--Clean School Buses

SEC. 5031. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Secretary of Energy, in consultation with 
the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency, shall establish a pilot program for 
awarding grants on a competitive basis to eligible entities for the 
acquisition of alternative fuel school buses and ultra-low sulfur 
diesel school buses.
    (b) Requirements.--Not later than 3 months after the date of the 
enactment of this Act, the Secretary shall establish and publish in the 
Federal register grant requirements on eligibility for assistance, and 
on implementation of the program established under subsection (a), 
including certification requirements to ensure compliance with this 
subtitle.
    (c) Solicitation.--Not later than 6 months after the date of the 
enactment of this Act, the Secretary shall solicit proposals for grants 
under this section.
    (d) Eligible Recipients.--A grant shall be awarded under this 
section only--
            (1) to a local or State governmental entity responsible for 
        providing school bus service to one or more public school 
        systems or responsible for the purchase of school buses; or
            (2) to a contracting entity that provides school bus 
        service to one or more public school systems, if the grant 
        application is submitted jointly with the school system or 
        systems which the buses will serve.
    (e) Types of Grants.--
            (1) In general.--Grants under this section shall promote 
        the conservation of energy and improvement of public health and 
        the environment by facilitating the acquisition of alternative 
        fuel school buses and ultra-low sulfur diesel school buses in 
        lieu of buses manufactured before model year 1977 and diesel-
        powered buses manufactured before model year 1991.
            (2) No economic benefit.--Other than the receipt of the 
        grant, a recipient of a grant under this section may not 
        receive any economic benefit in connection with the receipt of 
        the grant.
            (3) Priority of grant applications.--The Secretary shall 
        give priority to awarding grants to applicants who will utilize 
        grants to replace buses manufactured before model year 1977.
    (f) Conditions of Grant.--A grant provided under this section shall 
include the following conditions:
            (1) All buses acquired with funds provided under the grant 
        shall be operated as part of the school bus fleet for which the 
        grant was made for a minimum of 5 years.
            (2) Funds provided under the grant may only be used--
                    (A) to pay the cost, except as provided in 
                paragraph (3), of new alternative fuel school buses or 
                ultra-low sulfur diesel school buses, including State 
                taxes and contract fees; and
                    (B) to provide--
                            (i) up to 10 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will only be available to the 
                        grant recipient; and
                            (ii) up to 15 percent of the price of the 
                        alternative fuel buses acquired, for necessary 
                        alternative fuel infrastructure if the 
                        infrastructure will be available to the grant 
                        recipient and to other bus fleets.
            (3) The grant recipient shall be required to provide at 
        least the lesser of 15 percent of the total cost of each bus 
        received or $15,000 per bus.
            (4) In the case of a grant recipient receiving a grant to 
        demonstrate ultra-low sulfur diesel school buses, the grant 
        recipient shall be required to provide documentation to the 
        satisfaction of the Secretary that diesel fuel containing 
        sulfur at not more than 15 parts per million is available for 
        carrying out the purposes of the grant, and a commitment by the 
        applicant to use such fuel in carrying out the purposes of the 
        grant.
    (g) Buses.--Funding under a grant made under this section may be 
used to facilitate the use only of new alternative fuel school buses or 
ultra-low sulfur diesel school buses--
            (1) with a gross vehicle weight of greater than 14,000 
        pounds;
            (2) that are powered by a heavy duty engine;
            (3) that, in the case of alternative fuel school buses, 
        emit not more than--
                    (A) for buses manufactured in model year 2002, 2.5 
                grams per brake horsepower-hour of nonmethane 
                hydrocarbons and oxides of nitrogen and .01 grams per 
                brake horsepower-hour of particulate matter; and
                    (B) for buses manufactured in model years 2003 
                through 2006, 1.8 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter; 
                and
            (4) that, in the case of ultra-low sulfur diesel school 
        buses, emit not more than--
                    (A) for buses manufactured in model years 2002 
                through 2003, 3.0 grams per brake horsepower-hour of 
                oxides of nitrogen and .01 grams per brake horsepower-
                hour of particulate matter; and
                    (B) for buses manufactured in model years 2004 
                through 2006, 2.5 grams per brake horsepower-hour of 
                nonmethane hydrocarbons and oxides of nitrogen and .01 
                grams per brake horsepower-hour of particulate matter,
        except that under no circumstances shall buses be acquired 
        under this section that emit nonmethane hydrocarbons, oxides of 
        nitrogen, or particulate matter at a rate greater than the best 
        performing technology of the same class of ultra-low sulfur 
        diesel school buses commercially available at the time the 
        grant is made.
    (h) Deployment and Distribution.--The Secretary shall seek to the 
maximum extent practicable to achieve nationwide deployment of 
alternative fuel school buses and ultra-low sulfur diesel school buses 
through the program under this section, and shall ensure a broad 
geographic distribution of grant awards, with a goal of no State 
receiving more than 10 percent of the grant funding made available 
under this section for a fiscal year.
    (i) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for any fiscal year for the acquisition of 
ultra-low sulfur diesel school buses.
    (j) Reduction of School Bus Idling.--Each local educational agency 
(as defined in section 9101 of the Elementary and Secondary Education 
Act of 1965 (20 U.S.C. 7801)) that receives Federal funds under the 
Elementary and Secondary Education Act of 1965 (20 U.S.C. 6301 et seq.) 
is encouraged to develop a policy, consistent with the health, safety, 
and welfare of students and the proper operation and maintenance of 
school buses, to reduce the incidence of unnecessary school bus idling 
at schools when picking up and unloading students.
    (k) Annual Report.--Not later than January 31 of each year, the 
Secretary of Energy shall provide a report evaluating implementation of 
the program under this section to the Congress. Such report shall 
include the total number of grant applications received, the number and 
types of alternative fuel school buses and ultra-low sulfur diesel 
school buses requested in grant applications, a list of grants awarded 
and the criteria used to select the grant recipients, certified engine 
emission levels of all buses purchased under the program, and any other 
information the Secretary considers appropriate.
    (l) Definitions.--For purposes of this section--
            (1) the term ``alternative fuel school bus'' means a school 
        bus powered substantially by electricity (including electricity 
        supplied by a fuel cell), or by liquefied natural gas, 
        compressed natural gas, liquefied petroleum gas, hydrogen, 
        propane, or methanol or ethanol at no less than 85 percent by 
        volume;
            (2) the term ``idling'' means operating an engine while 
        remaining stationary for more than approximately 3 minutes, 
        except that such term does not apply to routine stoppages 
associated with traffic movement or congestion; and
            (3) the term ``ultra-low sulfur diesel school bus'' means a 
        school bus powered by diesel fuel which contains sulfur at not 
        more than 15 parts per million.

SEC. 5032. FUEL CELL BUS DEVELOPMENT AND DEMONSTRATION PROGRAM.

    (a) Establishment of Program.--The Secretary shall establish a 
program for entering into cooperative agreements with private sector 
fuel cell bus developers for the acquisition of fuel cell-powered 
school buses, and subsequently with not less than 2 units of local 
government using natural gas-powered school buses and such private 
sector fuel cell bus developers to facilitate the use of fuel cell-
powered school buses.
    (b) Cost Sharing.--The non-Federal contribution for activities 
funded under this section shall be not less than 20 percent for fuel 
infrastructure development activities.
    (c) Funding.--No more than $25,000,000 of the amounts authorized 
under section 5033 may be used for carrying out this section for the 
period encompassing fiscal years 2003 through 2006.
    (d) Reports to Congress.--Not later than 3 years after the date of 
the enactment of this Act, and not later than October 1, 2006, the 
Secretary shall transmit to the Congress a report that--
            (1) evaluates the process of converting natural gas 
        infrastructure to accommodate fuel cell-powered school buses; 
        and
            (2) assesses the overall impact on energy conservation, 
        public health, and the environment as a result of this program 
        under this section.

SEC. 5033. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary for 
carrying out this subtitle, to remain available until expended--
            (1) $60,000,000 for fiscal year 2004;
            (2) $70,000,000 for fiscal year 2005; and
            (3) $80,000,000 for fiscal year 2006.

                     Subtitle D--Advanced Vehicles

SEC. 5041. DEFINITIONS.

    For the purposes of this subtitle, the following definitions apply:
            (1) Alternative fueled vehicle.--The term ``alternative 
        fueled vehicle'' means a vehicle propelled solely on an 
        alternative fuel as defined in section 301 of the Energy Policy 
        Act of 1992 (42 U.S.C. 13211), except the term does not include 
        any vehicle that the Secretary determines, by rule, does not 
        yield substantial environmental benefits over a vehicle 
        operating solely on gasoline or diesel derived from fossil 
        fuels.
            (2) Fuel cell vehicle.--The term ``fuel cell vehicle'' 
        means a vehicle propelled by one or more cells that convert 
        chemical energy directly into electricity by combining oxygen 
        with hydrogen fuel which is stored on board the vehicle in any 
        form and may or may not require reformation prior to use.
            (3) Hybrid vehicle.--The term ``hybrid vehicle'' means a 
        medium or heavy duty vehicle propelled by an internal 
        combustion engine using any combustible fuel and an onboard 
        rechargeable battery storage system.
            (4) Neighborhood electric vehicle.--The term ``neighborhood 
        electric vehicle'' means a motor vehicle that qualifies as 
        both--
                    (A) a low-speed vehicle, as such term is defined in 
                section 571.3(b) of title 49, Code of Federal 
                Regulations; and
                    (B) a zero-emission vehicle, as such term is 
                defined in section 86.1702-99 of title 40, Code of 
                Federal Regulations.
            (5) Pilot program.--The term ``pilot program'' means the 
        competitive grant program established under section 5042.
            (6) Ultra-low sulfur diesel vehicle.--The term ``ultra-low 
        sulfur diesel vehicle'' means a vehicle manufactured in model 
        years 2002 through 2006 powered by a heavy-duty diesel engine 
        that--
                    (A) is fueled by diesel fuel which contains sulfur 
                at not more than 15 parts per million; and
                    (B) emits not more than the lesser of--
                            (i) for vehicles manufactured in--
                                    (I) model years 2002 and 2003, 3.0 
                                grams per brake horsepower-hour of 
                                oxides of nitrogen and .01 grams per 
                                brake horsepower-hour of particulate 
                                matter; and
                                    (II) model years 2004 through 2006, 
                                2.5 grams per brake horsepower-hour of 
                                nonmethane hydrocarbons and oxides of 
                                nitrogen and .01 grams per brake 
                                horsepower-hour of particulate matter; 
                                or
                            (ii) the emissions of nonmethane 
                        hydrocarbons, oxides of nitrogen, and 
                        particulate matter of the best performing 
                        technology of ultra-low sulfur diesel vehicles 
                        of the same class and application that are 
                        commercially available.

SEC. 5042. PILOT PROGRAM.

    (a) Establishment.--The Secretary shall establish a competitive 
grant pilot program, to be administered through the Clean Cities 
Program of the Department of Energy, to provide not more than 10 
geographically dispersed project grants to State governments, local 
governments, or metropolitan transportation authorities to carry out a 
project or projects for the purposes described in subsection (b).
    (b) Grant Purposes.--Grants under this section may be used for the 
following purposes:
            (1) The acquisition of alternative fueled vehicles or fuel 
        cell vehicles, including--
                    (A) passenger vehicles including neighborhood 
                electric vehicles; and
                    (B) motorized two-wheel bicycles, scooters, or 
                other vehicles for use by law enforcement personnel or 
                other State or local government or metropolitan 
                transportation authority employees.
            (2) The acquisition of alternative fueled vehicles, hybrid 
        vehicles, or fuel cell vehicles, including--
                    (A) buses used for public transportation or 
                transportation to and from schools;
                    (B) delivery vehicles for goods or services; and
                    (C) ground support vehicles at public airports, 
                including vehicles to carry baggage or push airplanes 
                away from terminal gates.
            (3) The acquisition of ultra-low sulfur diesel vehicles.
            (4) Infrastructure necessary to directly support an 
        alternative fueled vehicle, fuel cell vehicle, or hybrid 
        vehicle project funded by the grant, including fueling and 
        other support equipment.
            (5) Operation and maintenance of vehicles, infrastructure, 
        and equipment acquired as part of a project funded by the 
        grant.
    (c) Applications.--
            (1) Requirements.--The Secretary shall issue requirements 
        for applying for grants under the pilot program. At a minimum, 
        the Secretary shall require that applications be submitted by 
        the head of a State or local government or a metropolitan 
        transportation authority, or any combination thereof, and a 
        registered participant in the Clean Cities Program of the 
        Department of Energy, and shall include--
                    (A) a description of the projects proposed in the 
                application, including how they meet the requirements 
                of this subtitle;
                    (B) an estimate of the ridership or degree of use 
                of the projects proposed in the application;
                    (C) an estimate of the air pollution emissions 
                reduced and fossil fuel displaced as a result of the 
                projects proposed in the application, and a plan to 
                collect and disseminate environmental data, related to 
                the projects to be funded under the grant, over the 
                life of the projects;
                    (D) a description of how the projects proposed in 
                the application will be sustainable without Federal 
                assistance after the completion of the term of the 
                grant;
                    (E) a complete description of the costs of each 
                project proposed in the application, including 
                acquisition, construction, operation, and maintenance 
                costs over the expected life of the project;
                    (F) a description of which costs of the projects 
                proposed in the application will be supported by 
                Federal assistance under this subtitle; and
                    (G) documentation to the satisfaction of the 
                Secretary that diesel fuel containing sulfur at not 
                more than 15 parts per million is available for 
                carrying out the projects, and a commitment by the 
                applicant to use such fuel in carrying out the 
                projects.
            (2) Partners.--An applicant under paragraph (1) may carry 
        out projects under the pilot program in partnership with public 
        and private entities.
    (d) Selection Criteria.--In evaluating applications under the pilot 
program, the Secretary shall consider each applicant's previous 
experience with similar projects and shall give priority consideration 
to applications that--
            (1) are most likely to maximize protection of the 
        environment;
            (2) demonstrate the greatest commitment on the part of the 
        applicant to ensure funding for the proposed projects and the 
        greatest likelihood that each project proposed in the 
        application will be maintained or expanded after Federal 
        assistance under this subtitle is completed; and
            (3) exceed the minimum requirements of subsection 
        (c)(1)(A).
    (e) Pilot Project Requirements.--
            (1) Maximum amount.--The Secretary shall not provide more 
        than $20,000,000 in Federal assistance under the pilot program 
        to any applicant.
            (2) Cost sharing.--The Secretary shall not provide more 
        than 50 percent of the cost, incurred during the period of the 
        grant, of any project under the pilot program.
            (3) Maximum period of grants.--The Secretary shall not fund 
        any applicant under the pilot program for more than 5 years.
            (4) Deployment and distribution.--The Secretary shall seek 
        to the maximum extent practicable to ensure a broad geographic 
        distribution of project sites.
            (5) Transfer of information and knowledge.--The Secretary 
        shall establish mechanisms to ensure that the information and 
        knowledge gained by participants in the pilot program are 
        transferred among the pilot program participants and to other 
interested parties, including other applicants that submitted 
applications.
    (f) Schedule.--
            (1) Publication.--Not later than 3 months after the date of 
        the enactment of this Act, the Secretary shall publish in the 
        Federal Register, Commerce Business Daily, and elsewhere as 
        appropriate, a request for applications to undertake projects 
        under the pilot program. Applications shall be due within 6 
        months of the publication of the notice.
            (2) Selection.--Not later than 6 months after the date by 
        which applications for grants are due, the Secretary shall 
        select by competitive, peer review all applications for 
        projects to be awarded a grant under the pilot program.
    (g) Limit on Funding.--The Secretary shall provide not less than 20 
percent and not more than 25 percent of the grant funding made 
available under this section for the acquisition of ultra-low sulfur 
diesel vehicles.

SEC. 5043. REPORTS TO CONGRESS.

    (a) Initial Report.--Not later than 2 months after the date grants 
are awarded under this subtitle, the Secretary shall transmit to the 
Congress a report containing--
            (1) an identification of the grant recipients and a 
        description of the projects to be funded;
            (2) an identification of other applicants that submitted 
        applications for the pilot program; and
            (3) a description of the mechanisms used by the Secretary 
        to ensure that the information and knowledge gained by 
        participants in the pilot program are transferred among the 
        pilot program participants and to other interested parties, 
        including other applicants that submitted applications.
    (b) Evaluation.--Not later than 3 years after the date of the 
enactment of this Act, and annually thereafter until the pilot program 
ends, the Secretary shall transmit to the Congress a report containing 
an evaluation of the effectiveness of the pilot program, including an 
assessment of the benefits to the environment derived from the projects 
included in the pilot program as well as an estimate of the potential 
benefits to the environment to be derived from widespread application 
of alternative fueled vehicles and ultra-low sulfur diesel vehicles.

SEC. 5044. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary 
$200,000,000 to carry out this subtitle, to remain available until 
expended.

           Subtitle E--Hydrogen Fuel Cell Heavy-Duty Vehicles

SEC. 5051. DEFINITION.

    For the purposes of this subtitle, the term ``advanced vehicle 
technologies program'' means the program created pursuant to section 
5506 of title 49, United States Code.

SEC. 5052. FINDINGS.

    The Congress makes the following findings:
            (1) The Department of Energy and the Department of 
        Transportation jointly developed the consortium-based advanced 
        vehicle technologies program to develop energy efficient and 
        clean heavy-duty vehicles in 1998.
            (2) The majority of clean fuel vehicles in operation today 
        are transit buses.
            (3) Hydrogen fuel cell heavy-duty vehicle bus deployments 
        can most appropriately advance hydrogen fuel cell technology 
        development due to centralized refueling, stable duty cycles, 
        and fixed routes.
            (4) Hydrogen fuel cell heavy-duty vehicle bus deployments 
        are the most effective manner in which to advance technology 
        developments for public awareness, consumption, and acceptance.

SEC. 5053. HYDROGEN FUEL CELL BUSES.

    The Secretary of Energy, through the advanced vehicle technologies 
program, in coordination with the Secretary of Transportation, shall 
advance the development of fuel cell bus technologies by providing 
funding for 4 demonstration sites that--
            (1) have or will soon have hydrogen infrastructure for fuel 
        cell bus operation; and
            (2) are operated by entities with experience in the 
        development of fuel cell bus technologies,
to enable the widespread utilization of fuel cell buses. Such 
demonstrations shall address the reliability of fuel cell heavy-duty 
vehicles, expense, infrastructure, containment, storage, safety, 
training, and other issues.

SEC. 5054. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary of Energy 
$10,000,000 for each of the fiscal years 2004 through 2008 for carrying 
out this subtitle.

                       Subtitle F--Miscellaneous

SEC. 5061. RAILROAD EFFICIENCY.

    (a) Establishment.--The Secretary shall, in conjunction with the 
Secretary of Transportation and the Administrator of the Environmental 
Protection Agency, establish a public-private research partnership 
involving the Federal Government, the railroad industry, locomotive 
manufacturers and equipment suppliers, and the research facility owned 
by the Federal Railroad Administration and operated by contract. The 
goal of the research partnership shall include developing and 
demonstrating locomotive technologies that increase fuel economy, 
reduce emissions, and lower costs.
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out the requirements of this section $25,000,000 
for fiscal year 2004, $30,000,000 for fiscal year 2005, and $35,000,000 
for fiscal year 2006.

SEC. 5062. MOBILE EMISSION REDUCTIONS TRADING AND CREDITING.

    Within 180 days after the date of enactment of this Act, the 
Administrator of the Environmental Protection Agency shall provide a 
report to the Congress on the Environmental Protection Agency's 
experience with the trading of mobile source emission reduction credits 
for use by owners and operators of stationary source emission sources 
to meet emission offset requirements within a nonattainment area. The 
report shall describe--
            (1) projects approved by the Environmental Protection 
        Agency that include the trading of mobile source emission 
        reduction credits for use by stationary sources in complying 
        with offset requirements, including project and stationary 
        sources location, volumes of emissions offset and traded, a 
        description of the sources of mobile emission reduction 
        credits, and, if available, the cost of the credits;
            (2) the significant issues identified by the Environmental 
        Protection Agency in its consideration and approval of trading 
        in such projects;
            (3) the requirements for monitoring and assessing the air 
        quality benefits of any approved project;
            (4) the statutory authority upon which the Environmental 
        Protection Agency has based approval of such projects;
            (5) an evaluation of how the resolution of issues in 
        approved projects could be utilized in other projects; and
            (6) any other issues the Environmental Protection Agency 
        considers relevant to the trading and generation of mobile 
        source emission reduction credits for use by stationary sources 
        or for other purposes.

SEC. 5063. IDLE REDUCTION TECHNOLOGIES.

    (a) Definitions.--For purposes of this section:
            (1) Idle reduction technology.--The term ``idle reduction 
        technology'' means a device or system of devices utilized to 
        reduce long-duration idling of a heavy-duty vehicle.
            (2) Heavy-duty vehicle.--The term ``heavy-duty vehicle'' 
        means a vehicle that has a gross vehicle weight rating greater 
        than 26,000 pounds and is powered by a diesel engine.
            (3) Long-duration idling.--The term ``long-duration 
        idling'' means the operation of a main drive engine, for a 
        period greater than 15 consecutive minutes, where the main 
        drive engine is not engaged in gear. Such term does not apply 
        to routine stoppages associated with traffic movement or 
        congestion.
    (b) Studies of the Benefits of Idle Reduction Technologies.--
            (1) Potential fuel savings.--Not later than 90 days after 
        the date of enactment of this section, the Secretary of Energy 
        shall, in consultation with the Secretary of Transportation, 
        commence a study to analyze the potential fuel savings 
        resulting from use of idle reduction technologies.
            (2) Recognition of benefits of advanced idle reduction 
        technologies.--Within 90 days after the date of enactment of 
        this section, the Administrator of the Environmental Protection 
        Agency is directed to commence a review of the Agency's mobile 
        source air emissions models used under the Clean Air Act to 
        determine whether such models accurately reflect the emissions 
        resulting from long-duration idling of heavy-duty trucks and 
        other vehicles and engines, and shall update those models as 
        the Administrator deems appropriate. Additionally, within 90 
        days after the date of enactment of this section, the 
        Administrator shall commence a review as to the appropriate 
        emissions reductions credit that should be allotted under the 
        Clean Air Act for the use of advanced idle reduction 
        technologies, and whether such credits should be subject to an 
        emissions trading system, and shall revise Agency regulations 
        and guidance as the Administrator deems appropriate.
            (3) Idling technologies.--Not later than 180 days after the 
        date of the enactment of this section, the Secretary of Energy, 
        in consultation with the Secretary of Transportation and the 
        Administrator of the Environmental Protection Agency, shall 
        commence a study to analyze where heavy duty and other vehicles 
        stop for long duration idling.
    (c) Vehicle Weight Exemption.--Section 127(a) of title 23, United 
States Code, is amended by adding at the end the following: ``In 
instances where an idle reduction technology is installed onboard a 
motor vehicle, the maximum gross vehicle weight limit and the axle 
weight limit for any motor vehicle equipped with an idling reduction 
system may be increased by an amount necessary to compensate for the 
additional weight of the idling reduction system, except that the 
weight limit increase shall be no greater than 400 pounds.''.

SEC. 5064. STUDY OF AVIATION FUEL CONSERVATION AND EMISSIONS.

    The Administrator of the Federal Aviation Administration and the 
Administrator of the Environmental Protection Agency shall jointly 
commence a study within 60 days after the date of enactment of this Act 
to identify the impact of aircraft emissions on air quality in 
nonattainment areas and to identify ways to promote fuel conservation 
measures for aviation, enhance fuel efficiency, and reduce emissions. 
As part of this study, the Administrator of the Federal Aviation 
Administration and the Administrator of the Environmental Protection 
Agency shall focus on how air traffic management inefficiencies, such 
as aircraft idling at airports, result in unnecessary fuel burn and air 
emissions. Within 180 days after the commencement of the study, the 
Administrator of the Federal Aviation Administration and the 
Administrator of the Environmental Protection Agency shall submit a 
report to the Committees on Energy and Commerce and Transportation and 
Infrastructure of the House of Representatives and the Committees on 
Environment and Public Works and Commerce, Science, and Transportation 
of the Senate containing the results of the study and recommendations 
as to how unnecessary fuel use and emissions affecting air quality may 
be reduced, without impacting safety and security, increasing 
individual aircraft noise, and taking into account all aircraft 
emissions and their relative impact on human health.

SEC. 5065. DIESEL FUELED VEHICLES.

    (a) Diesel Combustion and After Treatment Technologies.--The 
Secretary of Energy shall accelerate efforts to improve diesel 
combustion and after-treatment technologies for use in diesel fueled 
motor vehicles.
    (b) Goal.--
            (1) Compliance with tier 2 emission standards by 2010.--The 
        Secretary shall carry out subsection (a) with a view to 
        developing and demonstrating diesel technology meeting tier 2 
        emission standards not later than 2010.
            (2) Tier 2 emission standards defined.--In this subsection, 
        the term ``tier 2 emission standards'' means the motor vehicle 
        emission standards promulgated by the Administrator of the 
        Environmental Protection Agency on February 10, 2000, under 
        sections 202 and 211 of the Clean Air Act to apply to passenger 
        cars, light trucks, and larger passenger vehicles of model 
        years after the 2003 vehicle model year.

SEC. 5066. HYBRID VEHICLES.

    (a) In General.--Notwithstanding section 102(a)(1) of title 23, 
United States Code, a State may, for the purpose of promoting energy 
conservation, permit a hybrid vehicle which is either a passenger 
automobile or light duty truck with fewer than 2 occupants to operate 
in high occupancy vehicle lanes.
    (b) Definition.--In this section, the term ``hybrid vehicle'' means 
a motor vehicle which draws propulsion energy from both--
            (1) an internal combustion or heat engine using combustible 
        fuel; and
            (2) an onboard rechargeable energy storage system.

SEC. 5067. WAIVERS OF ALTERNATIVE FUELED VEHICLE FUELING REQUIREMENT.

    Section 400AA(a)(3)(E) of the Energy Policy and Conservation Act 
(42 U.S.C. 6374(a)(3)(E)) is amended to read as follows:
    ``(E)(i) Dual fueled vehicles acquired pursuant to this section 
shall be operated on alternative fuels unless the Secretary determines 
that an agency needs a waiver of such requirement for vehicles in the 
fleet of the agency in a particular geographic area where--
            ``(I) the alternative fuel otherwise required to be used in 
        the vehicle is not reasonably available to retail purchasers of 
        the fuel, as certified to the Secretary by the head of the 
        agency; or
            ``(II) the cost of the alternative fuel otherwise required 
        to be used in the vehicle is unreasonably more expensive 
        compared to gasoline, as certified by the head of the agency.
    ``(ii) The Secretary shall monitor compliance with this 
subparagraph by all such fleets and shall report annually to the 
Congress on the extent to which the requirements of this subparagraph 
are being achieved. The report shall include information on annual 
reductions achieved of petroleum-based fuels and the problems, if any, 
encountered in acquiring alternative fuels.''.

                         TITLE VI--DOE PROGRAMS

SEC. 6001. PURPOSES.

    The purposes of this title are to--
            (1) contribute to a national energy strategy through 
        Department of Energy programs that promote the production and 
        conservation of energy in partnership with industry;
            (2) protect and strengthen the Nation's economy, standard 
        of living, and national security by reducing dependence on 
        imported energy;
            (3) meet future needs for energy services at the lowest 
        total cost to the Nation, giving balanced and comprehensive 
        consideration to technologies that improve the efficiency of 
        energy end uses and that enhance energy supply;
            (4) reduce the environmental impacts of energy production, 
        distribution, transportation, and use;
            (5) help increase domestic production of energy, increase 
        the availability of hydrocarbon reserves, and lower energy 
        prices; and
            (6) stimulate economic growth and enhance the ability of 
        United States companies to compete in future markets for 
        advanced energy technologies.

SEC. 6002. DEFINITIONS.

    For purposes of this title:
            (1) Department.--The term ``Department'' means the 
        Department of Energy.
            (2) Departmental mission.--The term ``departmental 
        mission'' means any of the functions vested in the Secretary of 
        Energy by the Department of Energy Organization Act (42 U.S.C. 
        7101 et seq.) or other law.
            (3) Institution of higher education.--The term 
        ``institution of higher education'' has the meaning given that 
        term in section 101(a) of the Higher Education Act of 1965 (20 
        U.S.C. 1001(a)).
            (4) Joint venture.--The term ``joint venture'' has the 
        meaning given that term under section 2 of the National 
        Cooperative Research and Production Act of 1993 (15 U.S.C. 
        4301).
            (5) National laboratory.--The term ``National Laboratory'' 
        means any of the following laboratories owned by the 
        Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Idaho National Engineering and Environmental 
                Laboratory.
                    (F) Lawrence Berkeley National Laboratory.
                    (G) Lawrence Livermore National Laboratory.
                    (H) Los Alamos National Laboratory.
                    (I) National Energy Technology Laboratory.
                    (J) National Renewable Energy Laboratory.
                    (K) Oak Ridge National Laboratory.
                    (L) Pacific Northwest National Laboratory.
                    (M) Princeton Plasma Physics Laboratory.
                    (N) Sandia National Laboratories.
                    (O) Thomas Jefferson National Accelerator Facility.
            (6) Nonmilitary energy laboratory.--The term ``nonmilitary 
        energy laboratory'' means any of the following laboratories of 
        the Department:
                    (A) Ames National Laboratory.
                    (B) Argonne National Laboratory.
                    (C) Brookhaven National Laboratory.
                    (D) Fermi National Laboratory.
                    (E) Lawrence Berkeley National Laboratory.
                    (F) Oak Ridge National Laboratory.
                    (G) Pacific Northwest National Laboratory.
                    (H) Princeton Plasma Physics Laboratory.
                    (I) Stanford Linear Accelerator Center.
                    (J) Thomas Jefferson National Accelerator Facility.
            (7) Secretary.--The term ``Secretary'' means the Secretary 
        of Energy.

                     Subtitle A--Energy Efficiency

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6011. ENERGY EFFICIENCY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for energy efficiency and conservation 
activities, including activities authorized under this subtitle:
            (1) For fiscal year 2003, $560,000,000.
            (2) For fiscal year 2004, $616,000,000.
            (3) For fiscal year 2005, $695,000,000.
            (4) For fiscal year 2006, $772,000,000.
            (5) For fiscal year 2007, $865,000,000.
    (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Lighting systems.--For activities under section 6021, 
        $10,000,000 for fiscal year 2003 and $50,000,000 for each of 
        fiscal years 2004 through 2007.
            (2) Secondary electric vehicle battery use program.--For 
        activities under section 6032--
                    (A) for fiscal year 2003, $1,000,000;
                    (B) for fiscal year 2004, $4,000,000;
                    (C) for fiscal year 2005, $7,000,000;
                    (D) for fiscal year 2006, $7,000,000; and
                    (E) for fiscal year 2007, $7,000,000.
    (c) Extended authorization.--There are authorized to be 
appropriated to the Secretary for activities under section 6021, 
$50,000,000 for each of fiscal years 2008 through 2012.
    (d) Limits on Use of Funds.--None of the funds authorized to be 
appropriated under this section may be used for--
            (1) the promulgation and implementation of energy 
        efficiency regulations;
            (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
            (3) the State Energy Program under part D of title III of 
        the Energy Policy and Conservation Act; or
            (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

                        PART 2--LIGHTING SYSTEMS

SEC. 6021. NEXT GENERATION LIGHTING INITIATIVE.

    (a) In General.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
    (b) Objectives.--The objectives of the initiative shall be--
            (1) to develop, by 2012, advanced solid-state lighting 
        technologies based on white light emitting diodes that, 
        compared to incandescent and fluorescent lighting technologies, 
        are--
                    (A) longer lasting;
                    (B) more energy-efficient; and
                    (C) cost-competitive;
            (2) to develop an inorganic white light emitting diode that 
        has an efficiency of 160 lumens per watt and a 10-year 
        lifetime; and
            (3) to develop an organic white light emitting diode with 
        an efficiency of 100 lumens per watt with a 5-year lifetime 
        that--
                    (A) illuminates over a full color spectrum;
                    (B) covers large areas over flexible surfaces; and
                    (C) does not contain harmful pollutants, such as 
                mercury, typical of fluorescent lamps.
    (c) Consortium.--
            (1) In general.--The Secretary shall establish the Next 
        Generation Lighting Initiative through a private consortium 
        (which may include private firms, trade associations and 
        institutions of higher education), which the Secretary shall 
        select through a competitive process. Each proposed consortium 
        shall submit to the Secretary such information as the Secretary 
        may require, including a program plan agreed to by all 
        participants of the consortium.
            (2) Joint venture.--The consortium shall be structured as a 
        joint venture among the participants of the consortium. The 
        Secretary shall serve on the governing council of the 
        consortium.
            (3) Eligibility.--To be eligible to be selected as the 
        consortium under paragraph (1), an applicant must be broadly 
        representative of United States solid-state lighting research, 
        development, and manufacturing expertise as a whole.
            (4) Grants.--(A) The Secretary shall award grants to the 
        consortium, which the consortium may disburse to researchers, 
        including those who are not participants of the consortium.
            (B) To receive a grant, the consortium must provide a 
        description to the Secretary of the proposed activities and 
        list the parties that will receive funding.
            (5) National laboratories.--National Laboratories may 
        participate in the activities described in this section, and 
        may receive funds from the consortium.
            (6) Intellectual property.--Participants in the consortium 
        and the Federal Government shall have royalty-free nonexclusive 
        rights to use intellectual property derived from activities 
        funded pursuant to this subsection.
    (d) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out the development, demonstration, and 
commercial application activities of the Next Generation Lighting 
Initiative through awards to private firms, trade associations, and 
institutions of higher education. In selecting awardees, the Secretary 
may give preference to members of the consortium selected pursuant to 
subsection (c).
    (e) Plans and Assessments.--(1) The consortium shall formulate an 
annual operating plan which shall include priorities, technical 
milestones, and plans for technology transfer, and which shall be 
subject to approval by the Secretary.
    (2) The Secretary shall enter into an arrangement with the National 
Academy of Sciences to conduct periodic reviews of the Next Generation 
Lighting Initiative. The Academy shall review the priorities, technical 
milestones, and plans for technology transfer established under 
paragraph (1) and evaluate the progress toward achieving them. The 
Secretary shall consider the results of such reviews in evaluating the 
plans submitted under paragraph (1).
    (f) Audit.--The Secretary shall retain an independent, commercial 
auditor to perform an audit of the consortium to determine the extent 
to which the funds authorized by this section have been expended in a 
manner consistent with the purposes of this section. The auditor shall 
transmit a report annually to the Secretary, who shall transmit the 
report to the Congress, along with a plan to remedy any deficiencies 
cited in the report.
    (g) Sunset.--The Next Generation Lighting Initiative shall 
terminate no later than September 30, 2013.
    (h) Definitions.--As used in this section:
            (1) Advanced solid-state lighting.--The term ``advanced 
        solid-state lighting'' means a semiconducting device package 
        and delivery system that produces white light using externally 
        applied voltage.
            (2) Inorganic white light emitting diode.--The term 
        ``inorganic white light emitting diode'' means an inorganic 
        semiconducting package that produces white light using 
        externally applied voltage.
            (3) Organic white light emitting diode.--The term ``organic 
        white light emitting diode'' means an organic semiconducting 
        compound that produces white light using externally applied 
        voltage.

                            PART 3--VEHICLES

SEC. 6031. DEFINITIONS.

    For purposes of this part, the term--
            (1) ``battery'' means an energy storage device that 
        previously has been used to provide motive power in a vehicle 
        powered in whole or in part by electricity; and
            (2) ``associated equipment'' means equipment located where 
        the batteries will be used that is necessary to enable the use 
        of the energy stored in the batteries.

SEC. 6032. ESTABLISHMENT OF SECONDARY ELECTRIC VEHICLE BATTERY USE 
              PROGRAM.

    (a) Program.--The Secretary shall establish and conduct a program 
for the secondary use of batteries. Such program shall be--
            (1) designed to demonstrate the use of batteries in 
        secondary application, including utility and commercial power 
        storage and power quality;
            (2) structured to evaluate the performance, including 
        useful service life and costs, of such batteries in field 
        operations, and evaluate the necessary supporting 
        infrastructure, including reuse and disposal of batteries; and
            (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
    (b) Solicitation.--(1) Not later than 6 months after the date of 
the enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
    (2)(A) Proposals submitted in response to a solicitation under this 
section shall include--
            (i) a description of the project, including the batteries 
        to be used in the project, the proposed locations and 
        applications for the batteries, the number of batteries to be 
        demonstrated, and the type, characteristics, and estimated 
        life-cycle costs of the batteries compared to other energy 
        storage devices currently used;
            (ii) the contribution, if any, of State or local 
        governments and other persons to the demonstration project;
            (iii) the type of associated equipment and supporting 
        infrastructure to be demonstrated; and
            (iv) any other information the Secretary considers 
        appropriate.
    (B) If the proposal includes a lease arrangement, the proposal 
shall indicate the terms of such lease arrangement for the batteries 
and associated equipment.
    (c) Selection of Proposals.--(1)(A) The Secretary, in cooperation 
with affected Federal Regulatory agencies, shall, not later than 3 
months after the closing date established by the Secretary for receipt 
of proposals under subsection (b), select at least 5 proposals to 
receive financial assistance under this section.
    (B) No one project selected under this section shall receive more 
than 25 percent of the funds authorized under this section. No more 
than 3 projects selected under this section shall demonstrate the same 
battery type.
    (2) In selecting a proposal under this section, the Secretary shall 
consider--
            (A) the ability of the proposer to acquire the batteries 
        and associated equipment and to successfully manage and conduct 
        the demonstration project, including satisfying the reporting 
        requirements set forth in paragraph (3)(B);
            (B) the geographic and climatic diversity of the projects 
        selected;
            (C) the long-term technical and competitive viability of 
        the batteries to be used in the project and of the original 
        manufacturer of such batteries;
            (D) the suitability of the batteries for their intended 
        uses;
            (E) the technical performance of the batteries, including 
        the expected additional useful life and the batteries' ability 
        to retain energy;
            (F) the environmental effects of the use of and disposal of 
        the batteries proposed to be used in the project selected;
            (G) the extent of involvement of State or local government 
        and other persons in the demonstration project and whether such 
        involvement will--
                    (i) permit a reduction of the Federal cost share 
                per project; or
                    (ii) otherwise be used to allow the Federal 
                contribution to be provided to demonstrate a greater 
                number of batteries; and
            (H) such other criteria as the Secretary considers 
        appropriate.
    (3) Conditions.--The Secretary shall require that--
            (A) as a part of a demonstration project, the users of the 
        batteries provide to the proposer information regarding the 
        operation, maintenance, performance, and use of the batteries, 
        and the proposer provide such information to the battery 
        manufacturer, for 3 years after the beginning of the 
        demonstration project;
            (B) the proposer provide to the Secretary and the 
        Administrator of the United States Environmental Protection 
        Agency such information regarding the operation, maintenance, 
        performance, and use of the batteries as the Secretary or the 
        Administrator may request;
            (C) the proposer provide to the Secretary such information 
        regarding the disposal of the batteries as the Secretary may 
        require to ensure that the proposer disposes of the batteries 
        in accordance with applicable law; and
            (D) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

       Subtitle B--Distributed Energy and Electric Energy Systems

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6201. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

    The following sums are authorized to be appropriated to the 
Secretary for distributed energy and electric energy systems 
activities, including activities authorized under this subtitle:
            (1) For fiscal year 2004, $190,000,000.
            (2) For fiscal year 2005, $200,000,000.
            (3) For fiscal year 2006, $220,000,000.
            (4) For fiscal year 2007, $240,000,000.

                       PART 2--DISTRIBUTED POWER

SEC. 6221. STRATEGY.

    (a) Requirement.--Not later than 1 year after the date of enactment 
of this Act, the Secretary shall develop and transmit to the Congress a 
strategy for a comprehensive program to develop hybrid distributed 
power systems that combine--
            (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
            (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.
    (b) Contents.--The strategy shall--
            (1) identify the needs best met with such hybrid 
        distributed power systems and the technological barriers to the 
        use of such systems;
            (2) provide for the development of methods to design, test, 
        integrate into systems, and operate such hybrid distributed 
        power systems;
            (3) include, as appropriate, activities needed for the 
        adoption of such hybrid distributed power systems, including 
        energy storage devices and environmental control technologies; 
        and
            (4) describe how activities under the strategy will be 
        integrated with other activities supported by the Department of 
        Energy related to electric power technologies.

SEC. 6222. HIGH POWER DENSITY INDUSTRY PROGRAM.

    The Secretary shall establish a comprehensive program to improve 
energy efficiency of high power density facilities, including data 
centers, server farms, and telecommunications facilities. Such program 
shall consider technologies that provide significant improvement in 
thermal controls, metering, load management, peak load reduction, or 
the efficient cooling of electronics.

SEC. 6223. MICRO-COGENERATION ENERGY TECHNOLOGY.

    The Secretary shall make competitive, merit-based grants to 
consortia for the development of micro-cogeneration energy technology. 
The consortia shall explore the use of small-scale combined heat and 
power in residential heating appliances.

                      PART 3--TRANSMISSION SYSTEMS

SEC. 6231. TRANSMISSION INFRASTRUCTURE SYSTEMS.

    (a) Program Authorized.--The Secretary shall develop a program to 
promote improved reliability and efficiency of electrical transmission 
systems. Such program may include--
            (1) advanced energy technologies, materials, and systems;
            (2) advanced grid reliability and efficiency technology 
        development;
            (3) technologies contributing to significant load 
        reductions;
            (4) advanced metering, load management, and control 
        technologies;
            (5) technologies to enhance existing grid components;
            (6) the development and use of high-temperature 
        superconductors to--
                    (A) enhance the reliability, operational 
                flexibility, or power-carrying capability of electric 
                transmission or distribution systems; or
                    (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
            (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
            (8) any other infrastructure technologies, as appropriate; 
        and
            (9) technology transfer and education.
    (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this Act, the Secretary, in consultation with other 
appropriate Federal agencies, shall prepare and transmit to Congress a 
5-year program plan to guide activities under this section. In 
preparing the program plan, the Secretary shall consult with utilities, 
energy services providers, manufacturers, institutions of higher 
education, other appropriate State and local agencies, environmental 
organizations, professional and technical societies, and any other 
persons the Secretary considers appropriate.
    (c) Report.--Not later than 2 years after the transmittal of the 
plan under subsection (b), the Secretary shall transmit a report to 
Congress describing the progress made under this section and 
identifying any additional resources needed to continue the development 
and commercial application of transmission infrastructure technologies.

                      Subtitle C--Renewable Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6301. RENEWABLE ENERGY.

    (a) In General.--The following sums are authorized to be 
appropriated to the Secretary for renewable energy activities, 
including activities authorized under this subtitle:
            (1) For fiscal year 2004, $460,000,000.
            (2) For fiscal year 2005, $510,000,000.
            (3) For fiscal year 2006, $560,000,000.
            (4) For fiscal year 2007, $609,000,000.
    (b) Bioenergy.--From the amounts authorized under subsection (a), 
the following sums are authorized to be appropriated to carry out 
section 6321 and other bioenergy activities:
            (1) For fiscal year 2004, $135,425,000.
            (2) For fiscal year 2005, $155,600,000.
            (3) For fiscal year 2006, $167,650,000.
            (4) For fiscal year 2007, $180,000,000.
    (c) Use of Funds.--
            (1) Bioenergy.--Of the funds authorized under subsection 
        (b), not less than $5,000,000 for each fiscal year shall be 
        made available for grants to Historically Black Colleges and 
        Universities, Tribal Colleges, and Hispanic-Serving 
        Institutions.
            (2) Rural and remote locations.--In carrying out this 
        section, the Secretary, in consultation with the Secretary of 
        Agriculture, shall demonstrate the production and use of energy 
        from advanced wind power technology, biomass, geothermal energy 
        systems, and other renewable energy technologies in order to 
        assist in delivering electricity to rural and remote locations.
            (3) Hydropower.--Of the funds authorized under subsection 
        (a), not less than $5,000,000 for each fiscal year shall be 
        made available for demonstration projects of off-stream pumped 
        storage hydropower.

                           PART 2--BIOENERGY

SEC. 6321. BIOENERGY PROGRAMS.

    (a) Program.--The Secretary shall conduct a program to facilitate 
the production of bioenergy, including--
            (1) biopower energy systems;
            (2) biofuels;
            (3) integrated applications of both biopower and biofuels;
            (4) feedstocks; and
            (5) economic analysis.
    (b) Definition.--For purposes of this section, the term 
``bioenergy'' includes energy produced from animal waste and 
agricultural crops.

                       Subtitle D--Nuclear Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6411. NUCLEAR ENERGY.

    (a) Core Programs.--The following sums are authorized to be 
appropriated to the Secretary for nuclear energy activities, regulation 
of research and development activities and nuclear regulatory research, 
including activities authorized under this subtitle, other than those 
described in subsection (b):
            (1) For fiscal year 2004, $200,000,000.
            (2) For fiscal year 2005, $233,000,000.
            (3) For fiscal year 2006, $266,000,000.
            (4) For fiscal year 2007, $300,000,000.
    (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities under 
section 6421(f):
            (1) For fiscal year 2004, $120,000,000.
            (2) For fiscal year 2005, $125,000,000.
            (3) For fiscal year 2006, $130,000,000.
            (4) For fiscal year 2007, $135,000,000.
    (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
            (1) Advanced fuel recycling program.--For activities under 
        section 6431--
                    (A) for fiscal year 2004, $80,000,000;
                    (B) for fiscal year 2005, $93,000,000;
                    (C) for fiscal year 2006, $106,000,000; and
                    (D) for fiscal year 2007, $120,000,000.
            (2) University programs.--For activities under section 
        6441--
                    (A) for fiscal year 2004, $25,000,000;
                    (B) for fiscal year 2005, $33,900,000;
                    (C) for fiscal year 2006, $37,900,000; and
                    (D) for fiscal year 2007, $43,600,000.
    (d) Limit on Use of Funds.--None of the funds authorized under this 
section may be used for decommissioning the Fast Flux Test Facility.

                PART 2--NUCLEAR ENERGY RESEARCH PROGRAMS

SEC. 6421. NUCLEAR ENERGY RESEARCH PROGRAMS.

    (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
    (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, and component aging in existing nuclear 
power plants.
    (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall--
            (1) rely on the expertise and capabilities of the National 
        Laboratories in the areas of advanced nuclear fuels cycles and 
        fuels testing;
            (2) pursue an approach that considers a variety of reactor 
        designs;
            (3) include participation of international collaborators in 
        research, development, and design efforts as appropriate; and
            (4) encourage industry participation.
    (d) Generation IV Nuclear Energy Systems Initiative.--The Secretary 
shall carry out a Generation IV Nuclear Energy Systems Initiative to 
develop an overall technology plan and to support research and 
development necessary to make an informed technical decision about the 
most promising candidates for eventual commercial application. The 
Initiative shall examine advanced proliferation-resistant and passively 
safe reactor designs, including designs that--
            (1) are economically competitive with other electric power 
        generation plants;
            (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
            (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
            (4) utilize improved instrumentation.
    (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen using thermochemical 
processes.
    (f) Nuclear Infrastructure Support.--The Secretary shall develop 
and implement a strategy for the facilities of the Office of Nuclear 
Energy, Science, and Technology and shall transmit a report containing 
the strategy along with the President's budget request to the Congress 
for fiscal year 2005. Such strategy shall provide a cost-effective 
means for--
            (1) maintaining existing facilities and infrastructure, as 
        needed;
            (2) closing unneeded facilities;
            (3) making facility upgrades and modifications; and
            (4) building new facilities.

                    PART 3--ADVANCED FUEL RECYCLING

SEC. 6431. ADVANCED FUEL RECYCLING PROGRAM.

    (a) In General.--The Secretary, through the Director of the Office 
of Nuclear Energy, Science and Technology, shall conduct an advanced 
fuel recycling technology research and development program to evaluate 
proliferation-resistant fuel recycling and transmutation technologies 
which minimize environmental or public health and safety impacts as an 
alternative to aqueous reprocessing technologies deployed as of the 
date of enactment of this Act in support of evaluation of alternative 
national strategies for spent nuclear fuel and the Generation IV 
advanced reactor concepts, subject to annual review by the Secretary's 
Nuclear Energy Research Advisory Committee or other independent entity, 
as appropriate. Opportunities to enhance progress of this program 
through international cooperation should be sought.
    (b) Reports.--The Secretary shall report on the activities of the 
advanced fuel recycling technology research and development program, as 
part of the Department's annual budget submission.

                      PART 4--UNIVERSITY PROGRAMS

SEC. 6441. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

    (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
    (b) Duties.--In carrying out the program under this section, the 
Secretary shall--
            (1) establish a graduate and undergraduate fellowship 
        program to attract new and talented students;
            (2) establish a Junior Faculty Research Initiation Grant 
        Program to assist institutions of higher education in 
        recruiting and retaining new faculty in the nuclear sciences 
        and engineering;
            (3) support fundamental nuclear sciences and engineering 
        research through the Nuclear Engineering Education Research 
        Program;
            (4) encourage collaborative nuclear research among 
        industry, National Laboratories, and institutions of higher 
        education through the Nuclear Energy Research Initiative; and
            (5) support communication and outreach related to nuclear 
        science and engineering.
    (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
            (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
            (2) providing technical assistance, in collaboration with 
        the United States nuclear industry, in relicensing and 
        upgrading training reactors as part of a student training 
        program; and
            (3) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
    (d) University-National Laboratory Interactions.--The Secretary 
shall develop--
            (1) a sabbatical fellowship program for professors at 
        institutions of higher education to spend extended periods of 
        time at National Laboratories in the areas of nuclear science 
        and technology; and
            (2) a visiting scientist program in which National 
        Laboratory staff can spend time in academic nuclear science and 
        engineering departments.
The Secretary may provide fellowships for students to spend time at 
National Laboratories in the area of nuclear science with a member of 
the Laboratory staff acting as a mentor.
    (e) Operating and Maintenance Costs.--Funding for a research 
project provided under this section may be used to offset a portion of 
the operating and maintenance costs of a research reactor at an 
institution of higher education used in the research project.

                       Subtitle E--Fossil Energy

                PART 1--AUTHORIZATION OF APPROPRIATIONS

SEC. 6501. FOSSIL ENERGY.

    There are authorized to be appropriated to the Secretary for fossil 
energy activities, including activities authorized under this 
subtitle--
            (1) $523,000,000 for fiscal year 2004;
            (2) $542,000,000 for fiscal year 2005;
            (3) $558,000,000 for fiscal year 2006; and
            (4) $585,000,000 for fiscal year 2007.

   PART 2--ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER 
                          PETROLEUM RESOURCES

SEC. 6521. PROGRAM AUTHORITY.

    (a) In General.--The Secretary shall carry out a program under this 
part for ultra-deepwater and unconventional natural gas and other 
petroleum resource exploration and production, including safe 
operations and environmental mitigation.
    (b) Program Elements.--The program under this part shall address 
the following areas, including improving safety and minimizing 
environmental impacts of activities within each area:
            (1) Ultra-deepwater technology.
            (2) Ultra-deepwater architecture.
            (3) Unconventional natural gas and other petroleum resource 
        exploration and production technology.
    (c) Limitation on Location of Field Activities.--Field activities 
under the program under this part shall be carried out only--
            (1) in--
                    (A) areas in the territorial waters of the United 
                States not under any Outer Continental Shelf moratorium 
                as of September 30, 2002;
                    (B) areas onshore in the United States on public 
                land administered by the Secretary of the Interior 
                available for oil and gas leasing, where consistent 
                with applicable law and land use plans; and
                    (C) areas onshore in the United States on State or 
                private land, subject to applicable law; and
            (2) with the approval of the appropriate Federal or State 
        land management agency or private land owner.
    (d) National Energy Technology Laboratory.--The Secretary, through 
the National Energy Technology Laboratory, shall carry out activities 
complementary to activities under subsection (b)(1).
    (e) Consultation with Secretary of the Interior.--In carrying out 
this part, the Secretary shall consult regularly with the Secretary of 
the Interior.

SEC. 6522. ULTRA-DEEPWATER PROGRAM.

    (a) In General.--The Secretary shall carry out the activities under 
paragraphs (1) and (2) of section 6521(b), to maximize the value of the 
ultra-deepwater natural gas and other petroleum resources of the United 
States by increasing the supply of such resources and by reducing the 
cost and increasing the efficiency of exploration for and production of 
such resources, while improving safety and minimizing environmental 
impacts.
    (b) Role of the Secretary.--The Secretary shall have ultimate 
responsibility for, and oversight of, all aspects of the program under 
this section.
    (c) Role of the Program Consortium.--
            (1) In general.--The Secretary shall contract with a 
        consortium to--
                    (A) manage awards pursuant to subsection (f)(4);
                    (B) make recommendations to the Secretary for 
                project solicitations;
                    (C) disburse funds awarded under subsection (f) as 
                directed by the Secretary in accordance with the annual 
                plan under subsection (e); and
                    (D) carry out other activities assigned to the 
                program consortium by this section.
            (2) Limitation.--The Secretary may not assign any 
        activities to the program consortium except as specifically 
        authorized under this section.
            (3) Conflict of interest.--(A) The Secretary shall 
        establish procedures--
                    (i) to ensure that each board member, officer, or 
                employee of the program consortium who is in a 
                decisionmaking capacity under subsection (f)(3) or (4) 
                shall disclose to the Secretary any financial interests 
                in, or financial relationships with, applicants for or 
                recipients of awards under this section, including 
                those of his or her spouse or minor child, unless such 
                relationships or interests would be considered to be 
                remote or inconsequential; and
                    (ii) to require any board member, officer, or 
                employee with a financial relationship or interest 
                disclosed under clause (i) to recuse himself or herself 
                from any review under subsection (f)(3) or oversight 
                under subsection (f)(4) with respect to such applicant 
                or recipient.
            (B) The Secretary may disqualify an application or revoke 
        an award under this section if a board member, officer, or 
        employee has failed to comply with procedures required under 
        subparagraph (A)(ii).
    (d) Selection of the Program Consortium.--
            (1) In general.--The Secretary shall select the program 
        consortium through an open, competitive process.
            (2) Members.--The program consortium may include 
        corporations, institutions of higher education, National 
        Laboratories, or other research institutions. After submitting 
        a proposal under paragraph (4), the program consortium may not 
        add members without the consent of the Secretary.
            (3) Tax status.--The program consortium shall be an entity 
        that is exempt from tax under section 501(c)(3) of the Internal 
        Revenue Code of 1986.
            (4) Schedule.--Not later than 90 days after the date of 
        enactment of this Act, the Secretary shall solicit proposals 
        for the creation of the program consortium, which must be 
        submitted not less than 180 days after the date of enactment of 
        this Act. The Secretary shall select the program consortium not 
        later than 240 days after such date of enactment.
            (5) Application.--Applicants shall submit a proposal 
        including such information as the Secretary may require. At a 
        minimum, each proposal shall--
                    (A) list all members of the consortium;
                    (B) fully describe the structure of the consortium, 
                including any provisions relating to intellectual 
                property; and
                    (C) describe how the applicant would carry out the 
                activities of the program consortium under this 
                section.
            (6) Eligibility.--To be eligible to be selected as the 
        program consortium, an applicant must be an entity whose 
        members collectively have demonstrated capabilities in planning 
        and managing programs in natural gas or other petroleum 
        exploration or production.
            (7) Criterion.--The Secretary may consider the amount of 
        the fee an applicant proposes to receive under subsection (g) 
        in selecting a consortium under this section.
    (e) Annual Plan.--
            (1) In general.--The program under this section shall be 
        carried out pursuant to an annual plan prepared by the 
        Secretary in accordance with paragraph (2).
            (2) Development.--(A) Before drafting an annual plan under 
        this subsection, the Secretary shall solicit specific written 
        recommendations from the program consortium for each element to 
        be addressed in the plan, including those described in 
        paragraph (4). The Secretary may request that the program 
        consortium submit its recommendations in the form of a draft 
        annual plan.
            (B) The Secretary shall submit the recommendations of the 
        program consortium under subparagraph (A) to the Ultra-
        Deepwater Advisory Committee established under section 6525(a) 
        for review, and such Advisory Committee shall provide to the 
        Secretary written comments by a date determined by the 
        Secretary. The Secretary may also solicit comments from any 
        other experts.
            (C) The Secretary shall consult regularly with the program 
        consortium throughout the preparation of the annual plan.
            (3) Publication.--The Secretary shall transmit to the 
        Congress and publish in the Federal Register the annual plan, 
        along with any written comments received under paragraph (2)(A) 
        and (B). The annual plan shall be transmitted and published not 
        later than 60 days after the date of enactment of an Act making 
appropriations for a fiscal year for the program under this section.
            (4) Contents.--The annual plan shall describe the ongoing 
        and prospective activities of the program under this section 
        and shall include--
                    (A) a list of any solicitations for awards that the 
                Secretary plans to issue to carry out activities, 
                including the topics for such work, who would be 
                eligible to apply, selection criteria, and the duration 
                of awards; and
                    (B) a description of the activities expected of the 
                program consortium to carry out subsection (f)(4).
    (f) Awards.--
            (1) In general.--The Secretary shall make awards to carry 
        out activities under the program under this section. The 
        program consortium shall not be eligible to receive such 
        awards, but members of the program consortium may receive such 
        awards.
            (2) Proposals.--The Secretary shall solicit proposals for 
        awards under this subsection in such manner and at such time as 
        the Secretary may prescribe, in consultation with the program 
        consortium.
            (3) Review.--The Secretary shall make awards under this 
        subsection through a competitive process, which shall include a 
        review by individuals selected by the Secretary. Such 
        individuals shall include, for each application, Federal 
        officials, the program consortium, and non-Federal experts who 
        are not board members, officers, or employees of the program 
        consortium or of a member of the program consortium.
            (4) Oversight.--(A) The program consortium shall oversee 
        the implementation of awards under this subsection, consistent 
        with the annual plan under subsection (e), including disbursing 
        funds and monitoring activities carried out under such awards 
        for compliance with the terms and conditions of the awards.
            (B) Nothing in subparagraph (A) shall limit the authority 
        or responsibility of the Secretary to oversee awards, or limit 
        the authority of the Secretary to review or revoke awards.
            (C) The Secretary shall provide to the program consortium 
        the information necessary for the program consortium to carry 
        out its responsibilities under this paragraph.
    (g) Fee.--
            (1) In general.--To compensate the program consortium for 
        carrying out its activities under this section, the Secretary 
        shall provide to the program consortium a fee in an amount not 
        to exceed 7.5 percent of the amounts awarded under subsection 
        (f) for each fiscal year.
            (2) Advance.--The Secretary shall advance funds to the 
        program consortium upon selection of the consortium, which 
        shall be deducted from amounts to be provided under paragraph 
        (1).
    (h) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided to the program 
consortium, and funds provided under awards made under subsection (f), 
have been expended in a manner consistent with the purposes and 
requirements of this part. The auditor shall transmit a report annually 
to the Secretary, who shall transmit the report to Congress, along with 
a plan to remedy any deficiencies cited in the report.

SEC. 6523. UNCONVENTIONAL NATURAL GAS AND OTHER PETROLEUM RESOURCES 
              PROGRAM.

    (a) In General.--The Secretary, after consulting with appropriate 
Federal regulatory agencies, shall carry out activities under section 
6521(b)(3), to maximize the value of the onshore unconventional natural 
gas and other petroleum resources of the United States by increasing 
the supply of such resources and by reducing the cost and increasing 
the efficiency of exploration for and production of such resources, 
while improving safety and minimizing environmental impacts.
    (b) Awards.--
            (1) In general.--The Secretary shall carry out this section 
        through awards made through an open, competitive process.
            (2) Consortia.--In carrying out paragraph (1), the 
        Secretary shall give preference to making awards to consortia.
    (c) Audit.--The Secretary shall retain an independent, commercial 
auditor to determine the extent to which funds provided under awards 
made under this section have been expended in a manner consistent with 
the purposes and requirements of this part. The auditor shall transmit 
a report annually to the Secretary, who shall transmit the report to 
Congress, along with a plan to remedy any deficiencies cited in the 
report.
    (d) Focus Areas.--Awards under this section may focus on areas 
including advanced coal-bed methane, deep drilling, natural gas 
production from tight sands, natural gas production from gas shales, 
innovative exploration and production techniques, enhanced recovery 
techniques, and environmental mitigation of unconventional natural gas 
and other petroleum resources exploration and production.
    (e) Activities by the United States Geological Survey.--The 
Secretary of the Interior, through the United States Geological Survey, 
shall, where appropriate, carry out programs to complement the programs 
under this section.

SEC. 6524. ADDITIONAL REQUIREMENTS FOR AWARDS.

    (a) Demonstration Projects.--An application for an award under this 
part for a demonstration project shall describe with specificity the 
intended commercial use of the technology to be demonstrated.
    (b) Flexibility in Locating Demonstration Projects.--Subject to the 
limitation in section 6521(c), a demonstration project under this part 
relating to an ultra-deepwater technology or an ultra-deepwater 
architecture may be conducted in deepwater depths.
    (c) Intellectual Property Agreements.--If an award under this part 
is made to a consortium (other than the program consortium), the 
consortium shall provide to the Secretary a signed contract agreed to 
by all members of the consortium describing the rights of each member 
to intellectual property used or developed under the award.
    (d) Technology Transfer.--Each recipient of an award under this 
part shall conduct technology transfer activities, as appropriate.

SEC. 6525. ADVISORY COMMITTEES.

    (a) Ultra-Deepwater Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Ultra-Deepwater Advisory 
        Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including--
                    (A) individuals with extensive experience or 
                operational knowledge of offshore natural gas and other 
                petroleum exploration and production;
                    (B) individuals broadly representative of the 
                affected interests in ultra-deepwater natural gas and 
                other petroleum production, including interests in 
                environmental protection and safe operations;
                    (C) no individuals who are Federal employees; and
                    (D) no individuals who are board members, officers, 
                or employees of the program consortium.
            (3) Duties.--The advisory committee under this subsection 
        shall--
                    (A) advise the Secretary on the development and 
                implementation of programs under this part related to 
                ultra-deepwater natural gas and other petroleum 
                resources; and
                    (B) carry out section 6522(e)(2)(B).
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (b) Unconventional Resources Technology Advisory Committee.--
            (1) Establishment.--Not later than 270 days after the date 
        of enactment of this section, the Secretary shall establish an 
        advisory committee to be known as the Unconventional Resources 
        Technology Advisory Committee.
            (2) Membership.--The advisory committee under this 
        subsection shall be composed of members appointed by the 
        Secretary and including--
                    (A) individuals with extensive experience or 
                operational knowledge of unconventional natural gas and 
                other petroleum resource exploration and production, 
                including independent oil and gas producers;
                    (B) individuals broadly representative of the 
                affected interests in unconventional natural gas and 
                other petroleum resource exploration and production, 
                including interests in environmental protection and 
                safe operations; and
                    (C) no individuals who are Federal employees.
            (3) Duties.--The advisory committee under this subsection 
        shall advise the Secretary on the development and 
        implementation of activities under this part related to 
        unconventional natural gas and other petroleum resources.
            (4) Compensation.--A member of the advisory committee under 
        this subsection shall serve without compensation but shall 
        receive travel expenses, including per diem in lieu of 
        subsistence, in accordance with applicable provisions under 
        subchapter I of chapter 57 of title 5, United States Code.
    (c) Prohibition.--No advisory committee established under this 
section shall make recommendations on funding awards to consortia or 
for specific projects.

SEC. 6526. LIMITS ON PARTICIPATION.

    (a) In General.--An entity shall be eligible to receive an award 
under this part only if the Secretary finds--
            (1) that the entity's participation in the program under 
        this part would be in the economic interest of the United 
        States; and
            (2) that either--
                    (A) the entity is a United States-owned entity 
                organized under the laws of the United States; or
                    (B) the entity is organized under the laws of the 
                United States and has a parent entity organized under 
                the laws of a country which affords--
                            (i) to United States-owned entities 
                        opportunities, comparable to those afforded to 
                        any other entity, to participate in any 
                        cooperative venture similar to those authorized 
                        under this part;
                            (ii) to United States-owned entities local 
                        investment opportunities comparable to those 
                        afforded to any other entity; and
                            (iii) adequate and effective protection for 
                        the intellectual property rights of United 
                        States-owned entities.
    (b) Sense of Congress and Report.--It is the Sense of the Congress 
that ultra-deepwater technology developed under this part is to be 
developed primarily for production of ultra-deepwater natural gas and 
other petroleum resources of the United States, and that this priority 
is to be reflected in the terms of grants, contracts, and cooperative 
agreements entered under this part. As part of the annual Departmental 
budget submission, the Secretary shall report on all steps taken to 
implement the policy described in this subsection.

SEC. 6527. FUND.

    There is hereby established in the Treasury of the United States a 
separate fund to be known as the ``Ultra-Deepwater and Unconventional 
Natural Gas and Other Petroleum Products Fund''.

SEC. 6528. SUNSET.

    The authority provided by this part shall terminate on September 
30, 2010.

SEC. 6529. DEFINITIONS.

    In this part:
            (1) Deepwater.--The term ``deepwater'' means a water depth 
        that is greater than 200 but less than 1,500 meters.
            (2) Program consortium.--The term ``program consortium'' 
        means the consortium selected under section 6522(d).
            (3) Remote or inconsequential.--The term ``remote or 
        inconsequential'' has the meaning given that term in 
regulations issued by the Office of Government Ethics under section 
208(b)(2) of title 18, United States Code.
            (4) Ultra-deepwater.--The term ``ultra-deepwater'' means a 
        water depth that is equal to or greater than 1,500 meters.
            (5) Ultra-deepwater architecture.--The term ``ultra-
        deepwater architecture'' means the integration of technologies 
        for the exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (6) Ultra-deepwater technology.--The term ``ultra-deepwater 
        technology'' means a discrete technology that is specially 
        suited to address one or more challenges associated with the 
        exploration for, or production of, natural gas or other 
        petroleum resources located at ultra-deepwater depths.
            (7) Unconventional natural gas and other petroleum 
        resource.--The term ``unconventional natural gas and other 
        petroleum resource'' means natural gas and other petroleum 
        resource located onshore in an economically inaccessible 
        geological formation.

                       Subtitle F--Miscellaneous

SEC. 6601. WASTE REDUCTION AND USE OF ALTERNATIVES.

    (a) Grant Authority.--The Secretary is authorized to make a single 
grant to a qualified institution to examine and develop the feasibility 
of burning post-consumer carpet in cement kilns as an alternative 
energy source. The purposes of the grant shall include determining--
            (1) how post-consumer carpet can be burned without 
        disrupting kiln operations;
            (2) the extent to which overall kiln emissions may be 
        reduced;
            (3) the emissions of air pollutants and other relevant 
        environmental impacts; and
            (4) how this process provides benefits to both cement kiln 
        operations and carpet suppliers.
    (b) Qualified Institution.--For the purposes of subsection (a), a 
qualified institution is a research-intensive institution of higher 
education with demonstrated expertise in the fields of fiber recycling 
and logistical modeling of carpet waste collection and preparation.
    (c) Waste Reduction and Use of Alternatives.--There are authorized 
to be appropriated to the Secretary to carry out activities under this 
section $500,000 for fiscal year 2004.

SEC. 6602. COAL GASIFICATION.

    The Secretary is authorized to provide loan guarantees for a 
project to produce energy from a plant using integrated gasification 
combined cycle technology of at least 400 megawatts in capacity that 
produces power at competitive rates in deregulated energy generation 
markets and that does not receive any subsidy (direct or indirect) from 
ratepayers.

SEC. 6603. PETROLEUM COKE GASIFICATION.

    The Secretary is authorized to provide loan guarantees for at least 
one petroleum coke gasification polygeneration project.

SEC. 6604. OTHER BIOPOWER AND BIOENERGY.

    The Secretary shall conduct a program to assist in the planning, 
design, and implementation of projects to convert rice straw, rice 
hulls, sugarcane bagasse, forest thinnings, and barley grain into 
biopower and biofuels.

SEC. 6605. TECHNOLOGY TRANSFER.

    There are authorized to be appropriated to the Secretary $1,000,000 
for a competitively awarded contract, to an entity with offshore oil 
and gas management experience, for the transfer of technologies 
relating to ultra-deepwater research and development developed at the 
Naval Surface Warfare Center, Carderock Division.

SEC. 6606. LIMITATION ON LEGAL FEE REIMBURSEMENT.

    The Department of Energy shall not, except as required under a 
contract entered into before the date of enactment of this Act, 
reimburse any contractor or subcontractor of the Department for any 
legal fees or expenses incurred with respect to a complaint subsequent 
to--
            (1) an adverse determination on the merits with respect to 
        such complaint against the contractor or subcontractor by the 
        Director of the Department of Energy's Office of Hearings and 
        Appeals pursuant to section 708 of title 10, Code of Federal 
        Regulations, or by a Department of Labor Administrative Law 
        Judge pursuant to section 211 of the Energy Reorganization Act 
        of 1974 (42 U.S.C. 5851); or
            (2) an adverse final judgment by any State or Federal court 
        with respect to such complaint against the contractor or 
        subcontractor for wrongful termination or retaliation due to 
        the making of disclosures protected under chapter 12 of title 
        5, United States Code, section 211 of the Energy Reorganization 
        Act of 1974 (42 U.S.C. 5851), or any comparable State law,
unless the adverse determination or final judgment is reversed upon 
further administrative or judicial review.

SEC. 6607. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

    The Secretary, in coordination with industry leaders in extended 
reach drilling technology, shall establish a Complex Well Technology 
Testing Facility at the Rocky Mountain Oilfield Testing Center to 
increase the range of extended drilling technology to 50,000 feet, so 
that more energy resources can be realized with fewer drilling 
facilities.

SEC. 6608. TOTAL INTEGRATED THERMAL SYSTEMS.

    The Secretary shall--
            (1) conduct a study of the benefits of total integrated 
        thermal systems in reducing demand for oil and protecting the 
        environment; and
            (2) examine the feasibility of using total integrated 
        thermal systems in Department of Defense and other Federal 
        motor vehicle fleets.

SEC. 6609. OIL BYPASS FILTRATION TECHNOLOGY.

    The Secretary of Energy and the Administrator of the Environmental 
Protection Agency shall--
            (1) conduct a joint study of the benefits of oil bypass 
        filtration technology in reducing demand for oil and protecting 
        the environment; and
            (2) examine the feasibility of using oil bypass filtration 
        technology in Federal motor vehicle fleets.

                         TITLE VII--ELECTRICITY

                   Subtitle A--Transmission Capacity

SEC. 7011. TRANSMISSION INFRASTRUCTURE IMPROVEMENT RULEMAKING.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding the following new section at the end thereof:

``SEC. 215. TRANSMISSION INFRASTRUCTURE IMPROVEMENT RULEMAKING.

    ``(a) Rulemaking Requirement.--Within 1 year after the enactment of 
this section, the Commission shall establish, by rule, incentive-based 
(including but not limited to performance-based) transmission rate 
treatments to promote capital investment in the enlargement and 
improvement of facilities for the transmission of electric energy in 
interstate commerce as appropriate to--
            ``(1) promote economically efficient transmission and 
        generation of electricity;
            ``(2) provide a return on equity that attracts new 
        investment in transmission facilities and reasonably reflects 
        the risks taken by public utilities in restructuring control of 
        transmission assets; and
            ``(3) encourage deployment of transmission technologies and 
        other measures to increase the capacity and efficiency of 
        existing transmission facilities and improve the operation of 
        such facilities.
The Commission may, from time to time, revise such rule.
    ``(b) Funding of Certain Facilities.--The rule promulgated pursuant 
to this section shall provide that, upon the request of a regional 
transmission organization or other Commission-approved transmission 
organization, new transmission facilities that increase the transfer 
capability of the transmission system shall be participant funded. In 
such rules, the Commission shall also provide guidance as to what types 
of facilities may be participant funded.
    ``(c) Just and Reasonable Rates.--With respect to any transmission 
rate filed with the Commission on or after the effective date of the 
rule promulgated under this section, the Commission shall, in its 
review of such rate under sections 205 and 206, apply the rules adopted 
pursuant to this section, including any revisions thereto. Nothing in 
this section shall be construed to override, weaken, or conflict with 
the procedural and other requirements of this part, including the 
requirement of sections 205 and 206 that all rates, charges, terms, and 
conditions be just and reasonable and not unduly discriminatory or 
preferential.''.

SEC. 7012. SITING OF INTERSTATE ELECTRICAL TRANSMISSION FACILITIES.

    (a) Amendment of Federal Power Act.--Part II of the Federal Power 
Act is amended by adding at the end the following:

``SEC. 216. SITING OF INTERSTATE ELECTRICAL TRANSMISSION FACILITIES

    ``(a) Transmission Studies.--Within one year after the enactment of 
this section, and every 3 years thereafter, the Secretary of Energy 
shall conduct a study of electric transmission congestion. After 
considering alternatives and recommendations from interested parties 
the Secretary shall issue a report, based on such study, which may 
designate one or more geographic areas experiencing electric energy 
transmission congestion as `interstate congestion areas'.
    ``(b) Construction Permit.--The Commission is authorized, after 
notice and an opportunity for hearing, to issue permits for the 
construction or modification of electric transmission facilities in 
interstate congestion areas designated by the Secretary under 
subsection (a) if the Commission makes each of the following findings:
            ``(1) A finding that--
                    ``(A) the State in which the transmission 
                facilities are to be constructed or modified is without 
                authority to approve the siting of the facilities, or
                    ``(B) a State commission or body in the State in 
                which the transmission facilities are to be constructed 
                or modified that has authority to approve the siting of 
                the facilities has withheld approval, conditioned its 
                approval in such a manner that the proposed 
                construction or modification will not significantly 
                reduce transmission congestion in interstate commerce 
                and is otherwise not economically feasible, or delayed 
                final approval for more than one year after the filing 
                of an application seeking approval or one year after 
                the designation of the relevant interstate congestion 
                area, whichever is later.
            ``(2) A finding that the facilities to be authorized by the 
        permit will be used for the transmission of electric energy in 
        interstate commerce.
            ``(3) A finding that the proposed construction or 
        modification is consistent with the public interest.
            ``(4) A finding that the proposed construction or 
        modification will significantly reduce transmission congestion 
        in interstate commerce.
The Commission may include in a permit issued under this section 
conditions consistent with the public interest.
    ``(c) Permit Applications.--Permit applications under subsection 
(b) shall be made in writing to the Commission and verified under oath. 
The Commission shall issue rules setting forth the form of the 
application, the information it is to contain, and the manner of 
service of notice of the permit application upon interested persons.
    ``(d) Comments.--In any proceeding before the Commission under 
subsection (b), the Commission shall afford each State in which a 
transmission facility covered by the permit is or will be located, each 
affected Federal agency and Indian tribe, private property owners, and 
other interested persons, a reasonable opportunity to present their 
views and recommendations with respect to the need for and impact of a 
facility covered by the permit.
    ``(e) Rights-of-Way.--In the case of a permit under subsection (b) 
for electric transmission facilities to be located on property other 
than property owned by the United States or a State, if the permit 
holder cannot acquire by contract, or is unable to agree with the owner 
of the property to the compensation to be paid for, the necessary 
right-of-way to construct or modify such transmission facilities, the 
permit holder may acquire the right-of-way by the exercise of the right 
of eminent domain in the district court of the United States for the 
district in which the property concerned is located, or in the 
appropriate court of the State in which the property is located. The 
practice and procedure in any action or proceeding for that purpose in 
the district court of the United States shall conform as nearly as may 
be with the practice and procedure in similar action or proceeding in 
the courts of the State where the property is situated.
    ``(f) State Law.--Nothing in this section shall preclude any person 
from constructing any transmission facilities pursuant to State law.
    ``(g) Compliance With Other Laws.--Commission action under this 
section shall be subject to the National Environmental Policy Act of 
1969 (42 U.S.C. 4321 et seq.) and all other applicable Federal laws.
    ``(h) Compensation.--Any exercise of eminent domain authority 
pursuant to this section shall be considered a taking of private 
property for which just compensation is due. Just compensation shall be 
an amount equal to the full fair market value of the property taken on 
the date of the exercise of eminent domain authority, except that the 
compensation shall exceed fair market value if necessary to make the 
landowner whole for decreases in the value of any portion of the land 
not subject to eminent domain. Any parcel of land acquired by eminent 
domain under this subsection shall be transferred back to the owner 
from whom it was acquired (or his heirs or assigns) if the land is not 
used for power line construction or modification within a reasonable 
period of time after the acquisition. Property acquired under this 
subsection may not be used for any heritage area, recreational trail, 
or park, or for any other purpose (other than power line construction 
or modification, and for power line operation and maintenance) without 
the consent of the owner of the parcel from whom the property was 
acquired (or his heirs or assigns).
    ``(i) ERCOT.--Nothing in this section shall be construed to 
authorize any interconnection with any facility owned or operated by an 
entity referred to in section 212(k)(2)(B).
    ``(j) Rights of Way on Federal Lands.--
            ``(1) Lead agency.--If an applicant, or prospective 
        applicant, for Federal authorization related to an electricity 
        transmission or distribution facility so requests, the 
        Department of Energy (DOE) shall act as the lead agency for 
        purposes of coordinating all applicable Federal authorization 
        and related environmental review of the facility. The term 
        `Federal authorization' shall mean any authorization required 
        under Federal law in order to site a transmission or 
        distribution facility, including but not limited to such 
        permits, special use authorizations, certifications, opinions, 
        or other approvals as may be required, whether issued by a 
        Federal or a State agency. To the maximum extent practicable 
        under applicable Federal law, the Secretary of Energy shall 
        coordinate this Federal authorization and review process with 
        any Indian tribes, multi-State entities, and State agencies 
        that are responsible for conducting any separate permitting and 
        environmental reviews of the facility, to ensure timely and 
        efficient review and permit decisions.
            ``(2) Authority to set deadlines.--As lead agency, the 
        Department of Energy, in consultation with other Federal and, 
        as appropriate, with Indian tribes, multi-State entities, and 
        State agencies that are willing to coordinate their own 
        separate permitting and environmental reviews with the Federal 
        authorization and environmental reviews, shall establish prompt 
        and binding intermediate milestones and ultimate deadlines for 
        the review of and Federal authorization decisions relating to 
        the proposed facility. The Secretary of Energy shall ensure 
        that once an application has been submitted with such data as 
        the Secretary deems necessary, all permit decisions and related 
        environmental reviews under all applicable Federal laws shall 
        be completed within 1 year or, if a requirement of another 
        provision of Federal law makes this impossible, as soon 
        thereafter as is practicable. The Secretary of Energy also 
        shall provide an expeditious pre-application mechanism for 
        prospective applicants to confer with the agencies involved to 
        have each such agency determine and communicate to the 
        prospective applicant within 60 days of when the prospective 
        applicant submits a request for such information concerning--
                    ``(A) the likelihood of approval for a potential 
                facility; and
                    ``(B) key issues of concern to the agencies and 
                public.
            ``(3) Consolidated environmental review and record of 
        decision.--The Secretary of Energy, in consultation with the 
        affected agencies, shall prepare a single environmental review 
        document, which shall be used as the basis for all decisions on 
        the proposed project under Federal law. The document may be an 
        environmental assessment or environmental impact statement 
        under the National Environmental Policy Act of 1969 if 
        warranted, or such other form of analysis as may be warranted. 
        DOE and other agencies shall streamline the review and 
        permitting of transmission and distribution facilities within 
        corridors designated under section 503 of the Federal Land 
        Policy and Management Act (43 U.S.C. 1763) by fully taking into 
        account prior analyses and decisions as to the corridors. The 
        document under this section may consist of or include an 
        environmental assessment, if allowed by law, or an 
        environmental impact statement, if warranted or required by 
        law, or such other form of analysis as warranted, consistent 
        with any requirement of the National Environmental Policy Act, 
        the Federal Land Policy and Management Act, or any other 
        applicable law. Such document shall include consideration by 
        the relevant agencies of any applicable criteria or other 
        matters as required under applicable laws.
            ``(4) Appeals.--In the event that any agency has denied a 
        Federal authorization required for a transmission or 
        distribution facility, or has failed to act by the deadline 
        established by the Secretary pursuant to this section for 
        deciding whether to issue the authorization, the applicant or 
        any State in which the facility would be located may file an 
        appeal with the Secretary of Energy, who shall, in consultation 
        with the affected agency, review the denial or take action on 
        the pending application. Based on the overall record and in 
        consultation with the affected agency, the Secretary may then 
        either issue the necessary authorization with any appropriate 
        conditions, or deny the application. The Secretary shall issue 
        a decision within 90 days of the filing of the appeal. In 
making a decision under this paragraph, the Secretary shall comply with 
all applicable requirements of Federal law, including any requirements 
of the Endangered Species Act, the Clean Water Act, the National Forest 
Management Act, the National Environmental Policy Act, and the Federal 
Land Management and Policy Act.
            ``(5) Conforming regulations and memoranda of agreement.--
        Not later than 18 months after the date of enactment of this 
        section, the Secretary of Energy shall issue any regulations 
        necessary to implement the foregoing provisions. Not later than 
        1 year after the date of enactment of this section, the 
        Secretary and the heads of all relevant Federal departments and 
        non-departmental agencies shall, and interested Indian tribes, 
        multi-State entities, and State agencies may, enter into 
        Memoranda of Agreement to ensure the timely and coordinated 
        review and permitting of electricity transmission and 
        distribution facilities. The head of each Federal department or 
        non-departmental agency with approval authority shall designate 
        a senior responsible official and dedicate sufficient other 
        staff and resources to ensure that the DOE regulations and any 
        Memoranda are fully implemented.
            ``(6) Miscellaneous.--Each Federal authorization for an 
        electricity transmission or distribution facility shall be 
        issued for a duration, as determined by the Secretary of 
        Energy, commensurate with the anticipated use of the facility 
        and with appropriate authority to manage the right-of-way for 
        reliability and environmental protection. Further, when such 
        authorizations expire, they shall be reviewed for renewal 
        taking fully into account reliance on such electricity 
        infrastructure, recognizing its importance for public health, 
        safety and economic welfare and as a legitimate use of Federal 
        lands.
            ``(7) Maintaining and enhancing the transmission 
        infrastructure.--In exercising the responsibilities under this 
        section, the Secretary of Energy shall consult regularly with 
        the Federal Energy Regulatory Commission (FERC) and FERC-
        approved Regional Transmission Organizations and Independent 
        System Operators.
    ``(k) Interstate Compacts.--The consent of Congress is hereby given 
for States to enter into interstate compacts establishing regional 
transmission siting agencies to facilitate coordination among the 
States within such areas for purposes of siting future electric energy 
transmission facilities and to carry out State electric energy 
transmission siting responsibilities. The Secretary of Energy may 
provide technical assistance to regional transmission siting agencies 
established under this subsection.
    ``(l) Savings Clause.--Nothing in this section shall be construed 
to affect any requirement of the environmental laws of the United 
States, including, but not limited to, the National Environmental 
Policy Act of 1969. This section shall not apply to any component of 
the National Wilderness Preservation System, the National Wild and 
Scenic Rivers System, or the National Park system (including National 
Monuments therein).''.
    (b) Federal Corridors.--The Secretary of the Interior, the 
Secretary of Energy, the Secretary of Agriculture, and the Chairman of 
the Council on Environmental Quality shall, within 90 days of the date 
of enactment of this subsection, submit a joint report to Congress 
identifying the following:
            (1) all existing designated transmission and distribution 
        corridors on Federal land and the status of work related to 
        proposed transmission and distribution corridor designations, 
        the schedule for completing such work, any impediments to 
        completing the work, and steps that Congress could take to 
        expedite the process;
            (2) the number of pending applications to locate 
        transmission and distribution facilities on Federal lands, key 
        information relating to each such facility, how long each 
        application has been pending, the schedule for issuing a timely 
        decision as to each facility, and progress in incorporating 
        existing and new such rights-of-way into relevant land use and 
        resource management plans or their equivalent; and
            (3) the number of existing transmission and distribution 
        rights-of-way on Federal lands that will come up for renewal 
        within the following 5, 10, and 15 year periods, and a 
        description of how the Secretaries plan to manage such 
        renewals.

                   Subtitle B--Transmission Operation

SEC. 7021. OPEN ACCESS TRANSMISSION BY CERTAIN UTILITIES.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by inserting after section 211 the following:

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

    ``(a) In General.--Subject to section 212(h), the Commission may, 
by rule or order, require an unregulated transmitting utility to 
provide transmission services--
            ``(1) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself, and
            ``(2) on terms and conditions (not relating to rates) that 
        are comparable to those under which such unregulated 
        transmitting utility provides transmission services to itself 
        and that are not unduly discriminatory or preferential.
    ``(b) Exemptions.--
            ``(1) In general.--The Commission shall exempt from any 
        rule or order under this subsection any unregulated 
        transmitting utility that--
                    ``(A)(i) sells no more than 4,000,000 megawatt 
                hours of electricity per year; and
                    ``(ii) is a distribution utility; or
                    ``(B) does not own or operate any transmission 
                facilities that are necessary for operating an 
                interconnected transmission system (or any portion 
                thereof); or
                    ``(C) meets other criteria the Commission 
                determines to be in the public interest.
            ``(2) Local distribution.-- The requirements of subsection 
        (a) shall not apply to facilities used in local distribution.
    ``(c) Rate Changing Procedures.--The rate changing procedures 
applicable to public utilities under subsections (c) and (d) of section 
205 are applicable to unregulated transmitting utilities for purposes 
of this section.
    ``(d) Remand.--In exercising its authority under paragraph (1), the 
Commission may remand transmission rates to an unregulated transmitting 
utility for review and revision where necessary to meet the 
requirements of subsection (a).
    ``(e) Section 211 Requests.--The provision of transmission services 
under subsection (a) does not preclude a request for transmission 
services under section 211.
    ``(f) Definitions.--For purposes of this section--
            ``(1) The term `unregulated transmitting utility' means an 
        entity that--
                    ``(A) owns or operates facilities used for the 
                transmission of electric energy in interstate commerce, 
                and
                    ``(B) is either an entity described in section 
                201(f) or a rural electric cooperative.
            ``(2) The term `distribution utility' means an unregulated 
        transmitting utility that serves at least ninety percent of its 
        electric customers at retail.''.

SEC. 7022. REGIONAL TRANSMISSION ORGANIZATIONS.

    (a) Sense of the Congress on RTOs.--It is the sense of Congress 
that, in order to promote fair, open access to electric transmission 
service, benefit retail consumers, facilitate wholesale competition, 
improve efficiencies in transmission grid management, promote grid 
reliability, remove opportunities for unduly discriminatory or 
preferential transmission practices, and provide for the efficient 
development of transmission infrastructure needed to meet the growing 
demands of competitive wholesale power markets, all transmitting 
utilities in interstate commerce should voluntarily become members of 
independently administered regional transmission organizations that 
have operational control of interstate transmission facilities and do 
not own or control generation facilities used to supply electric energy 
for sale at wholesale.
    (b) Sense of the Congress on Capital Investment.--It is the sense 
of the Congress that the Federal Energy Regulatory Commission should 
provide to any transmitting utility that becomes a member of an 
operational regional transmitting organization approved by the 
Commission a return on equity sufficient to attract new investment 
capital for expansion of transmission capacity, in accordance with 
sections 205 and 206 of the Federal Power Act (16 U.S.C. 824d and 
824e), including the requirement that rates be just and reasonable.
    (c) Report on Pending Applications.--Not later than 120 days after 
the date of enactment of this section, the Federal Energy Regulatory 
Commission shall submit to the Committee on Energy and Commerce of the 
United States House of Representatives and the Committee on Energy and 
Natural Resources of the United States Senate a report containing the 
following:
            (1) A list of all regional transmission organization 
        applications filed at the Commission pursuant to the 
        Commission's Order No. 2000, including an identification of 
        each public utility and other entity included within the 
        proposed membership of the regional transmission organization.
            (2) A table showing the date each such application was 
        filed, the date of any revised filings of such application, the 
        date of each preliminary or final Commission order regarding 
        such application, and a statement of whether the application 
        has been rejected, preliminarily approved, finally approved, or 
        has some other status (including a description of that status).
            (3) For any application that has not been finally approved 
        by the Commission, a detailed description of every aspect of 
        the application that the Commission has determined does not 
        conform to the requirements of Order No. 2000.
            (4) For any application that has not been finally approved 
        by the Commission, an explanation by the Commission of why the 
        items described pursuant to paragraph (3) constitute material 
        noncompliance with the requirements of the Commission's Order 
        No. 2000 sufficient to justify denial of approval by the 
        Commission.
            (5) For all regional transmission organization applications 
        filed pursuant to the Commission's Order No. 2000, whether 
        finally approved or not--
                    (A) a discussion of that regional transmission 
                organization's efforts to minimize rate seams between 
                itself and--
                            (i) other regional transmission 
                        organizations; and
                            (ii) entities not participating in a 
                        regional transmission organization; and
                    (B) a discussion of the impact of such seams on 
                consumers and wholesale competition; and
                    (C) a discussion of minimizing cost-shifting on 
                consumers.
    (d) Federal Utility Participation in RTOS.--
            (1) Definitions.--For purposes of this section--
                    (A) The term ``appropriate Federal regulatory 
                authority'' means--
                            (i) with respect to a Federal power 
                        marketing agency, the Secretary of Energy, 
                        except that the Secretary may designate the 
                        Administrator of a Federal power marketing 
                        agency to act as the appropriate Federal 
                        regulatory authority with respect to the 
                        transmission system of that Federal power 
                        marketing agency; and
                            (ii) with respect to the Tennessee Valley 
                        Authority, the Board of Directors of the 
                        Tennessee Valley Authority.
                    (B) The term ``Federal utility'' means a Federal 
                power marketing agency or the Tennessee Valley 
                Authority.
                    (C) The term ``transmission system'' means electric 
                transmission facilities owned, leased, or contracted 
                for by the United States and operated by a Federal 
                utility.
            (2) Transfer.--The appropriate Federal regulatory authority 
        is authorized to enter into a contract, agreement or other 
        arrangement transferring control and use of all or part of the 
        Federal utility's transmission system to a regional 
        transmission organization approved by the Federal Energy 
        Regulatory Commission. Such contract, agreement or arrangement 
        shall include--
                    (A) performance standards for operation and use of 
                the transmission system that the head of the Federal 
                utility determines necessary or appropriate, including 
                standards that assure recovery of all the Federal 
                utility's costs and expenses related to the 
                transmission facilities that are the subject of the 
                contract, agreement or other arrangement, consistency 
                with existing contracts and third-party financing 
                arrangements, and consistency with said Federal 
                utility's statutory authorities, obligations, and 
                limitations;
                    (B) provisions for monitoring and oversight by the 
                Federal utility of the regional transmission 
                organization's fulfillment of the terms and conditions 
                of the contract, agreement or other arrangement, 
                including a provision that may provide for the 
                resolution of disputes through arbitration or other 
                means with the regional transmission organization or 
                with other participants, notwithstanding the 
                obligations and limitations of any other law regarding 
                arbitration; and
                    (C) a provision that allows the Federal utility to 
                withdraw from the regional transmission organization 
                and terminate the contract, agreement or other 
                arrangement in accordance with its terms.
        Neither this section, actions taken pursuant to it, nor any 
        other transaction of a Federal utility using a regional 
        transmission organization shall serve to confer upon the 
        Federal Energy Regulatory Commission jurisdiction or authority 
        over the Federal utility's electric generation assets, electric 
        capacity or energy that the Federal utility is authorized by 
        law to market, or the Federal utility's power sales activities.
            (3) Existing statutory and other obligations.--
                    (A) System operation requirements.--Any statutory 
                provision requiring or authorizing a Federal utility to 
                transmit electric power or to construct, operate or 
                maintain its transmission system shall not be construed 
                to prohibit a transfer of control and use of its 
                transmission system pursuant to, and subject to all 
                requirements of paragraph (2).
                    (B) Other obligations.--This subsection shall not 
                be construed to--
                            (i) suspend, or exempt any Federal utility 
                        from, any provision of existing Federal law, 
                        including but not limited to any requirement or 
                        direction relating to the use of the Federal 
                        utility's transmission system, environmental 
                        protection, fish and wildlife protection, flood 
                        control, navigation, water delivery, or 
                        recreation; or
                            (ii) authorize abrogation of any contract 
                        or treaty obligation.

SEC. 7023. NATIVE LOAD.

    Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding the following new section at the end thereof:

``SEC. 217. SERVICE OBLIGATIONS OF LOAD-SERVING ENTITIES.

    ``(a) In General.--In exercising authority under this Act, the 
Commission shall ensure that any load-serving entity that either--
            ``(1) owns transmission facilities for the transmission of 
        electric energy in interstate commerce used to purchase or 
        deliver electric energy to meet--
                    ``(A) a service obligation to customers; or
                    ``(B) an existing wholesale contractual obligation; 
                or
            ``(2) holds a contract or service agreement for firm 
        transmission service used to purchase or deliver electric 
        energy to meet--
                    ``(A) a service obligation to customers; or
                    ``(B) an existing wholesale contractual obligation
shall be entitled to use such transmission facilities or equivalent 
transmission rights to meet such obligations before transmission 
capacity is made available for other uses.
    ``(b) Use by Successor in Interest.--To the extent that all or a 
portion of the service obligation or contractual obligation covered by 
subsection (a) is transferred to another load serving entity, the 
successor shall be entitled to use such transmission facilities or firm 
transmission rights associated with the transferred service obligation 
consistent with subsection (a). Subsequent transfers to another load 
serving entity, or back to the original load-serving entity, shall be 
entitled to the same rights.
    ``(c) Other Entities.--The Commission may exercise authority under 
this Act to make transmission rights not used to meet an obligation 
covered by subsection (a) available to other entities in a manner 
determined by the Commission to be not unduly discriminatory or 
preferential.
    ``(d) Definitions.--For the purposes of this section:
            ``(1) The term `load-serving entity' means an electric 
        utility, transmitting utility or Federal power marketing agency 
        that has an obligation under Federal, State, or local law, or 
        under long-term contracts, to provide electric service to 
        either--
                    ``(A) electric consumers (as defined in section 
                3(5) of the Public Utility Regulatory Policies Act of 
                1978 (16 U.S.C. 2602(5)); or
                    ``(B) an electric utility as defined in section 
                3(4) of the Public Utility Regulatory Policies Act of 
                1978 (16 U.S.C. 2602(5)) that has an obligation to 
                provide electric service to electric consumers.
        Such obligations shall be deemed `service obligations'.
            ``(2) The term `existing wholesale contractual obligation' 
        means an obligation under a firm long-term wholesale contract 
        that was in effect on March 28, 2003. A contract modification 
        after March 28, 2003 (other than one that increases the 
quantity of electric energy sold under the contract) shall not affect 
the status of such contract as an existing wholesale contractual 
obligation.
    ``(e) Relationship to Other Provisions.--To the extent that a 
transmitting utility reserves transmission capacity (or reserves the 
equivalent amount of tradable transmission rights) to provide firm 
transmission service to meet service obligations or firm long-term 
wholesale contractual obligations pursuant to subsection (a), that 
transmitting utility shall not be considered as engaging in undue 
discrimination or preference under this Act.
    ``(f) Jurisdiction.--This section shall not apply to an entity 
located in an area referred to in section 212(k)(2)(A).
    ``(g) Savings Clause.--Nothing in this section shall affect any 
allocation of transmission rights by the PJM Interconnection, the New 
York Independent System Operator, the New England Independent System 
Operator, the Midwest Independent System Operator, or the California 
Independent System Operator. Nothing in this section shall provide a 
basis for abrogating any contract for firm transmission service or 
rights in effect as of the date of enactment of this section.''.

                        Subtitle C--Reliability

SEC. 7031. ELECTRIC RELIABILITY STANDARDS.

    Part II of the Federal Power Act (16 U.S.C 824 et seq.) is amended 
by inserting the following new section at the end thereof:

``SEC. 218. ELECTRIC RELIABILITY.

    ``(a) Definitions.--For purposes of this section--
            ``(1) The term `bulk-power system' means--
                    ``(A) facilities and control systems necessary for 
                operating an interconnected electric energy 
                transmission network (or any portion thereof); and
                    ``(B) electric energy from generation facilities 
                needed to maintain transmission system reliability.
        The term does not include facilities used in the local 
        distribution of electric energy.
            ``(2) The terms `Electric Reliability Organization' and 
        `ERO' mean the organization certified by the Commission under 
        subsection (c) the purpose of which is to establish and enforce 
        reliability standards for the bulk-power system, subject to 
        Commission review.
            ``(3) The term `reliability standard' means a requirement, 
        approved by the Commission under this section, to provide for 
        reliable operation of the bulk-power system. The term includes 
        requirements for the operation of existing bulk-power system 
        facilities and the design of planned additions or modifications 
        to such facilities to the extent necessary to provide for 
        reliable operation of the bulk-power system, but the term does 
        not include any requirement to enlarge such facilities or to 
        construct new transmission capacity or generation capacity.
            ``(4) The term `reliable operation' means operating the 
        elements of the bulk-power system within equipment and electric 
        system thermal, voltage, and stability limits so that 
        instability, uncontrolled separation, or cascading failures of 
        such system will not occur as a result of a sudden disturbance 
        or unanticipated failure of system elements.
            ``(5) The term `Interconnection' means a geographic area in 
        which the operation of bulk-power system components is 
        synchronized such that the failure of one or more of such 
        components may adversely affect the ability of the operators of 
        other components within the system to maintain reliable 
        operation of the facilities within their control.
            ``(6) The term `transmission organization' means a regional 
        transmission organization, independent system operator, 
independent transmission provider, or other transmission organization 
finally approved by the Commission for the operation of transmission 
facilities.
            ``(7) The term `regional entity' means an entity having 
        enforcement authority pursuant to subsection (e)(4).
    ``(b) Jurisdiction and Applicability.--(1) The Commission shall 
have jurisdiction, within the United States, over the ERO certified by 
the Commission under subsection (c), any regional entities, and all 
users, owners and operators of the bulk-power system, including but not 
limited to the entities described in section 201(f), for purposes of 
approving reliability standards established under this section and 
enforcing compliance with this section. All users, owners and operators 
of the bulk-power system shall comply with reliability standards that 
take effect under this section.
    ``(2) The Commission shall issue a final rule to implement the 
requirements of this section not later than 180 days after the date of 
enactment of this section.
    ``(c) Certification.--Following the issuance of a Commission rule 
under subsection (b)(2), any person may submit an application to the 
Commission for certification as the Electric Reliability Organization 
(ERO). The Commission may certify one such ERO if the Commission 
determines that such ERO--
            ``(1) has the ability to develop and enforce, subject to 
        subsection (e)(2), reliability standards that provide for an 
        adequate level of reliability of the bulk-power system;
            ``(2) has established rules that--
                    ``(A) assure its independence of the users and 
                owners and operators of the bulk-power system, while 
                assuring fair stakeholder representation in the 
                selection of its directors and balanced decisionmaking 
                in any ERO committee or subordinate organizational 
                structure;
                    ``(B) allocate equitably reasonable dues, fees, and 
                other charges among end users for all activities under 
                this section;
                    ``(C) provide fair and impartial procedures for 
                enforcement of reliability standards through the 
                imposition of penalties in accordance with subsection 
                (e) (including limitations on activities, functions, or 
                operations, or other appropriate sanctions);
                    ``(D) provide for reasonable notice and opportunity 
                for public comment, due process, openness, and balance 
                of interests in developing reliability standards and 
                otherwise exercising its duties; and
                    ``(E) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada and 
                Mexico.
    ``(d) Reliability Standards.--(1) The Electric Reliability 
Organization shall file each reliability standard or modification to a 
reliability standard that it proposes to be made effective under this 
section with the Commission.
    ``(2) The Commission may approve, by rule or order, a proposed 
reliability standard or modification to a reliability standard if it 
determines that the standard is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest. The 
Commission shall give due weight to the technical expertise of the 
Electric Reliability Organization with respect to the content of a 
proposed standard or modification to a reliability standard and to the 
technical expertise of a regional entity organized on an 
Interconnection-wide basis with respect to a reliability standard to be 
applicable within that Interconnection, but shall not defer with 
respect to the effect of a standard on competition. A proposed standard 
or modification shall take effect upon approval by the Commission.
    ``(3) The Electric Reliability Organization shall rebuttably 
presume that a proposal from a regional entity organized on an 
Interconnection-wide basis for a reliability standard or modification 
to a reliability standard to be applicable on an Interconnection-wide 
basis is just, reasonable, and not unduly discriminatory or 
preferential, and in the public interest.
    ``(4) The Commission shall remand to the Electric Reliability 
Organization for further consideration a proposed reliability standard 
or a modification to a reliability standard that the Commission 
disapproves in whole or in part.
    ``(5) The Commission, upon its own motion or upon complaint, may 
order the Electric Reliability Organization to submit to the Commission 
a proposed reliability standard or a modification to a reliability 
standard that addresses a specific matter if the Commission considers 
such a new or modified reliability standard appropriate to carry out 
this section.
    ``(6) The final rule adopted under subsection (b)(2) shall include 
fair processes for the identification and timely resolution of any 
conflict between a reliability standard and any function, rule, order, 
tariff, rate schedule, or agreement accepted, approved, or ordered by 
the Commission applicable to a transmission organization. Such 
transmission organization shall continue to comply with such function, 
rule, order, tariff, rate schedule or agreement accepted approved, or 
ordered by the Commission until--
            ``(A) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
            ``(B) the Commission orders a change to such provision 
        pursuant to section 206 of this part; and
            ``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be 
changed as a result of such a conflict, it shall order the ERO to 
develop and file with the Commission a modified reliability standard 
under paragraph (4) or (5) of this subsection.
    ``(e) Enforcement.--(1) The ERO may impose, subject to paragraph 
(2), a penalty on a user or owner or operator of the bulk-power system 
for a violation of a reliability standard approved by the Commission 
under subsection (d) if the ERO, after notice and an opportunity for a 
hearing--
            ``(A) finds that the user or owner or operator has violated 
        a reliability standard approved by the Commission under 
        subsection (d); and
            ``(B) files notice and the record of the proceeding with 
        the Commission.
    ``(2) A penalty imposed under paragraph (1) may take effect not 
earlier than the 31st day after the electric reliability organization 
files with the Commission notice of the penalty and the record of 
proceedings. Such penalty shall be subject to review by the Commission, 
on its own motion or upon application by the user, owner or operator 
that is the subject of the penalty filed within 30 days after the date 
such notice is filed with the Commission. Application to the Commission 
for review, or the initiation of review by the Commission on its own 
motion, shall not operate as a stay of such penalty unless the 
Commission otherwise orders upon its own motion or upon application by 
the user, owner or operator that is the subject of such penalty. In any 
proceeding to review a penalty imposed under paragraph (1), the 
Commission, after notice and opportunity for hearing (which hearing may 
consist solely of the record before the electric reliability 
organization and opportunity for the presentation of supporting reasons 
to affirm, modify, or set aside the penalty), shall by order affirm, 
set aside, reinstate, or modify the penalty, and, if appropriate, 
remand to the electric reliability organization for further 
proceedings. The Commission shall implement expedited procedures for 
such hearings.
    ``(3) On its own motion or upon complaint, the Commission may order 
compliance with a reliability standard and may impose a penalty against 
a user or owner or operator of the bulk-power system, if the Commission 
finds, after notice and opportunity for a hearing, that the user or 
owner or operator of the bulk-power system has engaged or is about to 
engage in any acts or practices that constitute or will constitute a 
violation of a reliability standard.
    ``(4) The Commission shall establish regulations authorizing the 
ERO to enter into an agreement to delegate authority to a regional 
entity for the purpose of proposing reliability standards to the ERO 
and enforcing reliability standards under paragraph (1) if--
            ``(A) the regional entity is governed by--
                    ``(i) an independent board;
                    ``(ii) a balanced stakeholder board; or
                    ``(iii) a combination independent and balanced 
                stakeholder board.
            ``(B) the regional entity otherwise satisfies the 
        provisions of subsection (c)(1) and (2); and
            ``(C) the agreement promotes effective and efficient 
        administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the Commission 
shall rebuttably presume that a proposal for delegation to a regional 
entity organized on an Interconnection-wide basis promotes effective 
and efficient administration of bulk-power system reliability and 
should be approved. Such regulation may provide that the Commission may 
assign the ERO's authority to enforce reliability standards under 
paragraph (1) directly to a regional entity consistent with the 
requirements of this paragraph.
    ``(5) The Commission may take such action as is necessary or 
appropriate against the ERO or a regional entity to ensure compliance 
with a reliability standard or any Commission order affecting the ERO 
or a regional entity.
    ``(6) Any penalty imposed under this section shall bear a 
reasonable relation to the seriousness of the violation and shall take 
into consideration the efforts of such user, owner, or operator to 
remedy the violation in a timely manner.
    ``(f) Changes in Electricity Reliability Organization Rules.--The 
Electric Reliability Organization shall file with the Commission for 
approval any proposed rule or proposed rule change, accompanied by an 
explanation of its basis and purpose. The Commission, upon its own 
motion or complaint, may propose a change to the rules of the Electric 
Reliability Organization. A proposed rule or proposed rule change shall 
take effect upon a finding by the Commission, after notice and 
opportunity for comment, that the change is just, reasonable, not 
unduly discriminatory or preferential, is in the public interest, and 
satisfies the requirements of subsection (c).
    ``(g) Reliability Reports.--The Electric Reliability Organization 
shall conduct periodic assessments of the reliability and adequacy of 
the bulk-power system in North America.
    ``(h) Coordination with Canada and Mexico.--The President is urged 
to negotiate international agreements with the governments of Canada 
and Mexico to provide for effective compliance with reliability 
standards and the effectiveness of the Electric Reliability 
Organization in the United States and Canada or Mexico.
    ``(i) Savings Provisions.--(1) The Electric Reliability 
Organization shall have authority to develop and enforce compliance 
with reliability standards for only the bulk-power system.
    ``(2) This section does not authorize the Electric Reliability 
Organization or the Commission to order the construction of additional 
generation or transmission capacity or to set and enforce compliance 
with standards for adequacy or safety of electric facilities or 
services.
    ``(3) Nothing in this section shall be construed to preempt any 
authority of any State to take action to ensure the safety, adequacy, 
and reliability of electric service within that State, as long as such 
action is not inconsistent with any reliability standard, except that 
the State of New York may establish rules that result in greater 
reliability within that State, as long as such action does not result 
in lesser reliability outside the State than that provided by the 
reliability standards.
    ``(4) Within 90 days of the application of the Electric Reliability 
Organization or other affected party, and after notice and opportunity 
for comment, the Commission shall issue a final order determining 
whether a State action is inconsistent with a reliability standard, 
taking into consideration any recommendation of the Electric 
Reliability Organization.
    ``(5) The Commission, after consultation with the Electric 
Reliability Organization and the State taking action, may stay the 
effectiveness of any State action, pending the Commission's issuance of 
a final order.
    ``(j) Regional Advisory Bodies.--The Commission shall establish a 
regional advisory body on the petition of at least two-thirds of the 
States within a region that have more than one-half of their electric 
load served within the region. A regional advisory body shall be 
composed or of one member from each participating State in the region, 
appointed by the Governor of each State, and may include 
representatives of agencies, States, and provinces outside the United 
States. A regional advisory body may provide advice to the Electric 
Reliability Organization, a regional entity, or the Commission 
regarding the governance of an existing or proposed regional entity 
within the same region, whether a standard proposed to apply within the 
region is just, reasonable, not unduly discriminatory or preferential, 
and in the public interest, whether fees proposed to be assessed within 
the region are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference to the 
advice of any such regional advisory body if that body is organized on 
an Interconnection-wide basis.
    ``(k) Application to Alaska and Hawaii.--The provisions of this 
section do not apply to Alaska or Hawaii.''.

                      Subtitle D--PUHCA Amendments

SEC. 7041. SHORT TITLE.

    This subtitle may be cited as the ``Public Utility Holding Company 
Act of 2003''.

SEC. 7042. DEFINITIONS.

    For purposes of this subtitle:
            (1) The term ``affiliate'' of a company means any company, 
        5 percent or more of the outstanding voting securities of which 
        are owned, controlled, or held with power to vote, directly or 
        indirectly, by such company.
            (2) The term ``associate company'' of a company means any 
        company in the same holding company system with such company.
            (3) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
            (4) The term ``company'' means a corporation, partnership, 
        association, joint stock company, business trust, or any 
        organized group of persons, whether incorporated or not, or a 
        receiver, trustee, or other liquidating agent of any of the 
        foregoing.
            (5) The term ``electric utility company'' means any company 
        that owns or operates facilities used for the generation, 
        transmission, or distribution of electric energy for sale.
            (6) The terms ``exempt wholesale generator'' and ``foreign 
        utility company'' have the same meanings as in sections 32 and 
        33, respectively, of the Public Utility Holding Company Act of 
        1935 (15 U.S.C. 79z-5a, 79z-5b), as those sections existed on 
        the day before the effective date of this subtitle.
            (7) The term ``gas utility company'' means any company that 
        owns or operates facilities used for distribution at retail 
        (other than the distribution only in enclosed portable 
        containers or distribution to tenants or employees of the 
        company operating such facilities for their own use and not for 
        resale) of natural or manufactured gas for heat, light, or 
        power.
            (8) The term ``holding company'' means--
                    (A) any company that directly or indirectly owns, 
                controls, or holds, with power to vote, 10 percent or 
                more of the outstanding voting securities of a public 
                utility company or of a holding company of any public 
                utility company; and
                    (B) any person, determined by the Commission, after 
                notice and opportunity for hearing, to exercise 
                directly or indirectly (either alone or pursuant to an 
                arrangement or understanding with one or more persons) 
                such a controlling influence over the management or 
                policies of any public utility company or holding 
                company as to make it necessary or appropriate for the 
                rate protection of utility customers with respect to 
                rates that such person be subject to the obligations, 
                duties, and liabilities imposed by this subtitle upon 
                holding companies.
            (9) The term ``holding company system'' means a holding 
        company, together with its subsidiary companies.
            (10) The term ``jurisdictional rates'' means rates 
        established by the Commission for the transmission of electric 
        energy in interstate commerce, the sale of electric energy at 
        wholesale in interstate commerce, the transportation of natural 
        gas in interstate commerce, and the sale in interstate commerce 
        of natural gas for resale for ultimate public consumption for 
        domestic, commercial, industrial, or any other use.
            (11) The term ``natural gas company'' means a person 
        engaged in the transportation of natural gas in interstate 
        commerce or the sale of such gas in interstate commerce for 
        resale.
            (12) The term ``person'' means an individual or company.
            (13) The term ``public utility'' means any person who owns 
        or operates facilities used for transmission of electric energy 
        in interstate commerce or sales of electric energy at wholesale 
        in interstate commerce.
            (14) The term ``public utility company'' means an electric 
        utility company or a gas utility company.
            (15) The term ``State commission'' means any commission, 
        board, agency, or officer, by whatever name designated, of a 
        State, municipality, or other political subdivision of a State 
        that, under the laws of such State, has jurisdiction to 
        regulate public utility companies.
            (16) The term ``subsidiary company'' of a holding company 
        means--
                    (A) any company, 10 percent or more of the 
                outstanding voting securities of which are directly or 
                indirectly owned, controlled, or held with power to 
                vote, by such holding company; and
                    (B) any person, the management or policies of which 
                the Commission, after notice and opportunity for 
                hearing, determines to be subject to a controlling 
                influence, directly or indirectly, by such holding 
                company (either alone or pursuant to an arrangement or 
                understanding with one or more other persons) so as to 
                make it necessary for the rate protection of utility 
                customers with respect to rates that such person be 
                subject to the obligations, duties, and liabilities 
                imposed by this subtitle upon subsidiary companies of 
                holding companies.
            (17) The term ``voting security'' means any security 
        presently entitling the owner or holder thereof to vote in the 
        direction or management of the affairs of a company.

SEC. 7043. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

    The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et 
seq.) is repealed.

SEC. 7044. FEDERAL ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Each holding company and each associate company 
thereof shall maintain, and shall make available to the Commission, 
such books, accounts, memoranda, and other records as the Commission 
deems to be relevant to costs incurred by a public utility or natural 
gas company that is an associate company of such holding company and 
necessary or appropriate for the protection of utility customers with 
respect to jurisdictional rates.
    (b) Affiliate Companies.--Each affiliate of a holding company or of 
any subsidiary company of a holding company shall maintain, and shall 
make available to the Commission, such books, accounts, memoranda, and 
other records with respect to any transaction with another affiliate, 
as the Commission deems to be relevant to costs incurred by a public 
utility or natural gas company that is an associate company of such 
holding company and necessary or appropriate for the protection of 
utility customers with respect to jurisdictional rates.
    (c) Holding Company Systems.--The Commission may examine the books, 
accounts, memoranda, and other records of any company in a holding 
company system, or any affiliate thereof, as the Commission deems to be 
relevant to costs incurred by a public utility or natural gas company 
within such holding company system and necessary or appropriate for the 
protection of utility customers with respect to jurisdictional rates.
    (d) Confidentiality.--No member, officer, or employee of the 
Commission shall divulge any fact or information that may come to his 
or her knowledge during the course of examination of books, accounts, 
memoranda, or other records as provided in this section, except as may 
be directed by the Commission or by a court of competent jurisdiction.

SEC. 7045. STATE ACCESS TO BOOKS AND RECORDS.

    (a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, the holding company or any associate company or 
affiliate thereof, other than such public utility company, wherever 
located, shall produce for inspection books, accounts, memoranda, and 
other records that--
            (1) have been identified in reasonable detail by the State 
        commission;
            (2) the State commission deems are relevant to costs 
        incurred by such public utility company; and
            (3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
        proceeding.
    (b) Limitation.--Subsection (a) does not apply to any person that 
is a holding company solely by reason of ownership of one or more 
qualifying facilities under the Public Utility Regulatory Policies Act 
of 1978 (16 U.S.C. 2601 et seq.).
    (c) Confidentiality of Information.--The production of books, 
accounts, memoranda, and other records under subsection (a) shall be 
subject to such terms and conditions as may be necessary and 
appropriate to safeguard against unwarranted disclosure to the public 
of any trade secrets or sensitive commercial information.
    (d) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, accounts, 
memoranda, and other records, or in any way limit the rights of any 
State to obtain books, accounts, memoranda, and other records under any 
other Federal law, contract, or otherwise.
    (e) Court Jurisdiction.--Any United States district court located 
in the State in which the State commission referred to in subsection 
(a) is located shall have jurisdiction to enforce compliance with this 
section.

SEC. 7046. EXEMPTION AUTHORITY.

    (a) Rulemaking.--Not later than 90 days after the effective date of 
this subtitle, the Commission shall promulgate a final rule to exempt 
from the requirements of section 7044 (relating to Federal access to 
books and records) any person that is a holding company, solely with 
respect to one or more--
            (1) qualifying facilities under the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2601 et seq.);
            (2) exempt wholesale generators; or
            (3) foreign utility companies.
    (b) Other Authority.--The Commission shall exempt a person or 
transaction from the requirements of section 7044 (relating to Federal 
access to books and records) if, upon application or upon the motion of 
the Commission--
            (1) the Commission finds that the books, accounts, 
        memoranda, and other records of any person are not relevant to 
        the jurisdictional rates of a public utility or natural gas 
        company; or
            (2) the Commission finds that any class of transactions is 
        not relevant to the jurisdictional rates of a public utility or 
        natural gas company.

SEC. 7047. AFFILIATE TRANSACTIONS.

    (a) Commission Authority Unaffected.--Nothing in this subtitle 
shall limit the authority of the Commission under the Federal Power Act 
(16 U.S.C. 791a et seq.) to require that jurisdictional rates are just 
and reasonable, including the ability to deny or approve the pass 
through of costs, the prevention of cross-subsidization, and the 
promulgation of such rules and regulations as are necessary or 
appropriate for the protection of utility consumers.
    (b) Recovery of Costs.--Nothing in this subtitle shall preclude the 
Commission or a State commission from exercising its jurisdiction under 
otherwise applicable law to determine whether a public utility company, 
public utility, or natural gas company may recover in rates any costs 
of an activity performed by an associate company, or any costs of goods 
or services acquired by such public utility company from an associate 
company.

SEC. 7048. APPLICABILITY.

    Except as otherwise specifically provided in this subtitle, no 
provision of this subtitle shall apply to, or be deemed to include--
            (1) the United States;
            (2) a State or any political subdivision of a State;
            (3) any foreign governmental authority not operating in the 
        United States;
            (4) any agency, authority, or instrumentality of any entity 
        referred to in paragraph (1), (2), or (3); or
            (5) any officer, agent, or employee of any entity referred 
        to in paragraph (1), (2), or (3) acting as such in the course 
        of his or her official duty.

SEC. 7049. EFFECT ON OTHER REGULATIONS.

    Nothing in this subtitle precludes the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to protect utility customers.

SEC. 7050. ENFORCEMENT.

    The Commission shall have the same powers as set forth in sections 
306 through 317 of the Federal Power Act (16 U.S.C. 825e-825p) to 
enforce the provisions of this subtitle.

SEC. 7051. SAVINGS PROVISIONS.

    (a) In General.--Nothing in this subtitle prohibits a person from 
engaging in or continuing to engage in activities or transactions in 
which it is legally engaged or authorized to engage on the date of 
enactment of this Act, so long as that person continues to comply with 
the terms of any such authorization, whether by rule or by order.
    (b) Effect on Other Commission Authority.--Nothing in this subtitle 
limits the authority of the Commission under the Federal Power Act (16 
U.S.C. 791a et seq.) (including section 301 of that Act) or the Natural 
Gas Act (15 U.S.C. 717 et seq.) (including section 8 of that Act).

SEC. 7052. IMPLEMENTATION.

    Not later than 12 months after the date of enactment of this 
subtitle, the Commission shall--
            (1) promulgate such regulations as may be necessary or 
        appropriate to implement this subtitle (other than section 
        7045, relating to State access to books and records); and
            (2) submit to the Congress detailed recommendations on 
        technical and conforming amendments to Federal law necessary to 
        carry out this subtitle and the amendments made by this 
        subtitle.

SEC. 7053. TRANSFER OF RESOURCES.

    All books and records that relate primarily to the functions 
transferred to the Commission under this subtitle shall be transferred 
from the Securities and Exchange Commission to the Commission.

SEC. 7054. EFFECTIVE DATE.

    This subtitle shall take effect 12 months after the date of 
enactment of this subtitle.

SEC. 7055. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated such funds as may be 
necessary to carry out this subtitle.

SEC. 7056. CONFORMING AMENDMENTS TO THE FEDERAL POWER ACT.

    (a) Conflict of Jurisdiction.--Section 318 of the Federal Power Act 
(16 U.S.C. 825q) is repealed.
    (b) Definitions.--(1) Section 201(g)(5) of the Federal Power Act 
(16 U.S.C. 824(g)(5)) is amended by striking ``1935'' and inserting 
``2003''.
    (2) Section 214 of the Federal Power Act (16 U.S.C. 824m) is 
amended by striking ``1935'' and inserting ``2003''.

                      Subtitle E--PURPA Amendments

SEC. 7061. REAL-TIME PRICING AND TIME-OF-USE METERING STANDARDS.

    (a) Adoption of Standards.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(11) Real-time pricing.--(A) Each electric utility shall, 
        at the request of an electric consumer, provide electric 
        service under a real-time rate schedule, under which the rate 
        charged by the electric utility varies by the hour (or smaller 
        time interval) according to changes in the electric utility's 
        wholesale power cost. The real-time pricing service shall 
        enable the electric consumer to manage energy use and cost 
        through real-time metering and communications technology.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall consider and make a 
        determination concerning whether it is appropriate to implement 
        the standard set out in subparagraph (A) not later than 1 year 
        after the date of enactment of this paragraph.
            ``(12) Time-of-use metering.--(A) Each electric utility 
        shall, at the request of an electric consumer, provide electric 
        service under a time-of-use rate schedule which enables the 
        electric consumer to manage energy use and cost through time-
        of-use metering and technology.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall consider and make a 
        determination concerning whether it is appropriate to implement 
        the standards set out in subparagraph (A) not later than 1 year 
        after the date of enactment of this paragraph.''.
    (b) Special Rules.--Section 115 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2625) is amended by adding at the end 
the following:
    ``(i) Real-Time Pricing.--In a State that permits third-party 
marketers to sell electric energy to retail electric consumers, the 
electric consumer shall be entitled to receive the same real-time 
metering and communication service as a direct retail electric consumer 
of the electric utility.
    ``(j) Time-of-Use Metering.--In a State that permits third-party 
marketers to sell electric energy to retail electric consumers, the 
electric consumer shall be entitled to receive the same time-of-use 
metering and communication service as a direct retail electric consumer 
of the electric utility.''.

SEC. 7062. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
              REQUIREMENTS.

    (a) Termination of Mandatory Purchase and Sale Requirements.--
Section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) is amended by adding at the end the following:
    ``(m) Termination of Mandatory Purchase and Sale Requirements.--
            ``(1) Obligation to purchase.--After the date of enactment 
        of this subsection, no electric utility shall be required to 
        enter into a new contract or obligation to purchase electric 
        energy from a qualifying cogeneration facility or a qualifying 
        small power production facility under this section if the 
        Commission finds that--
                    ``(A) the qualifying cogeneration facility or 
                qualifying small power production facility has access 
                to
                            ``(i) independently administered, auction-
                        based day ahead and real time wholesale markets 
                        for the sale of electric energy, and
                            ``(ii) long-term wholesale markets for the 
                        sale of capacity and electric energy;
                    ``(B) the qualifying cogeneration facility or 
                qualifying small power production facility has access 
                to a competitive wholesale market for the sale of 
                electric energy that provides such qualifying 
                cogeneration facility or qualifying small power 
                production facility with opportunities to sell electric 
                energy that, at a minimum, are comparable to the 
                opportunities provided by the markets, or some minimum 
                combination thereof, described in subparagraph (A); or
                    ``(C) the qualifying cogeneration facility does not 
                meet criteria established by the Commission pursuant to 
                the rulemaking set forth in subparagraph (n) and has 
                not filed with the Commission a notice of self-
                certification or an application for Commission 
                certification under 18 C.F.R. 292.207 prior to the date 
                of enactment of this subsection.
            ``(2) Commission review.--(A) Any electric utility may file 
        an application with the Commission for relief from the 
        mandatory purchase obligation pursuant to this subsection on a 
        utility-wide basis. Such application shall set forth the 
        reasons why such relief is appropriate and describe how the 
        conditions set forth in subparagraphs (A) and (B) of paragraph 
        (1) of this subsection have been met.
            ``(B) After notice, including sufficient notice to 
        potentially affected qualifying facilities, and an opportunity 
        for comment, and within 90 days of the filing of an application 
        under subparagraph (A), the Commission shall make a final 
        determination as to whether the conditions set forth in 
        subparagraphs (A) and (B) of paragraph (1) have been met. The 
        Commission shall not be authorized to issue a tolling order 
        regarding such application or otherwise delay a final decision 
        regarding such application.
            ``(3) Reinstatement of obligation to purchase.--(A) At any 
        time after the Commission makes a finding under paragraph (2) 
        relieving an electric utility of its obligation to purchase 
        electric energy, a qualifying cogeneration facility or a 
        qualifying small power production facility may apply to the 
        Commission for an order reinstating the electric utility's 
        obligation to purchase electric energy under this section. Such 
        application shall set forth the reasons why such relief is no 
        longer appropriate and describe how the tests set forth in 
        subparagraphs (A) and (B) of paragraph (1) of this subsection 
        are no longer met.
            ``(B) After notice, including sufficient notice to 
        potentially affected utilities, and opportunity for comment, 
        and within 90 days of the filing of an application under 
        subparagraph (A), the Commission shall issue an order 
        reinstating the electric utility's obligation to purchase 
        electric energy under this section if the Commission finds that 
        the condition in paragraph (1), which relieved the obligation 
        to purchase, is no longer met. The Commission shall not be 
        authorized to issue a tolling order regarding such application 
        or otherwise delay a final decision regarding such application.
            ``(4) Obligation to sell.--After the date of enactment of 
        this subsection, no electric utility shall be required to enter 
        into a new contract or obligation to sell electric energy to a 
        qualifying cogeneration facility or a qualifying small power 
        production facility if--
                    ``(A) competing retail electric suppliers are 
                willing and able to provide electric energy to the 
                qualifying cogeneration facility or qualifying small 
                power production facility, and
                    ``(B) the electric utility is not required by State 
                law to sell electric energy in its service territory.
            ``(5) No effect on existing rights and remedies.--Nothing 
        in this subsection affects the rights or remedies of any party 
        under any contract or obligation, in effect or pending approval 
        before the appropriate State regulatory authority or 
        nonregulated electric utility on the date of enactment of this 
        subsection, to purchase electric energy or capacity from or to 
        sell electric energy or capacity to a facility under this Act 
        (including the right to recover costs of purchasing electric 
        energy or capacity).
            ``(6) Recovery of costs.--
                    ``(A) Regulation.--To ensure recovery by an 
                electric utility that purchases electric energy or 
                capacity from a qualifying facility pursuant to any 
                legally enforceable obligation entered into or imposed 
                under this section of all prudently incurred costs 
                associated with the purchases, the Commission shall 
                issue and enforce such regulations as may be required 
                to ensure that the electric utility shall recover the 
                prudently incurred costs associated with such 
                purchases.
                    ``(B) Enforcement.--A regulation under subparagraph 
                (A) shall be enforceable in accordance with the 
                provisions of law applicable to enforcement of 
                regulations under the Federal Power Act (16 U.S.C. 791a 
                et seq.).
    ``(n) Rulemaking for New Facilities.--
            ``(1) In general.--Not later than 180 days after the date 
        of enactment of this subsection, the Commission shall issue a 
        rule revising the criteria for qualifying cogeneration 
        facilities in 18 C.F.R. 292.205. In particular, the Commission 
        shall evaluate the rules regarding qualifying facility criteria 
        and revise such rules, as necessary, to ensure--
                    ``(A) that the thermal energy output of a new 
                qualifying cogeneration facility is used in a 
                productive and beneficial manner;
                    ``(B) the electrical and thermal output of the 
                cogeneration facility is used predominantly for 
                commercial or industrial processes and not intended 
                predominantly for sale to an electric utility; and
                    ``(C) continuing progress in the development of 
                efficient electric energy generating technology.
            ``(2) Applicability.--Any revisions made to operating and 
        efficiency standards shall be applicable only to a cogeneration 
        facility that--
                    ``(A) was not a qualifying cogeneration facility, 
                or
                    ``(B) had not filed with the Commission a notice of 
                self-certification or an application for Commission 
                certification under 18 C.F.R. 292.207
prior to the date of enactment of this subsection.
            ``(3) Definition.--For purposes of this subsection, the 
        term `commercial processes' includes uses of thermal and 
        electric energy for educational and healthcare facilities.
    ``(o) Rules for Existing Facilities.--Notwithstanding rule 
revisions under subsection (n), the Commission's rules in effect prior 
to the effective date of any revised rules prescribed under subsection 
(n) shall continue to apply to any cogeneration facility or small power 
production facility that--
            ``(1) was a qualifying cogeneration facility or a 
        qualifying small power production facility, or
            ``(2) had filed with the Commission a notice of self-
        certification or an application for Commission certification 
        under 18 C.F.R. 292.207
prior to the date of enactment of subsections (m) and (n).''.
    (b) Elimination of Ownership Limitations.--(1) Section 3(17)(C) of 
the Federal Power Act (16 U.S.C. 796(17)(C)) is amended to read as 
follows:
    ``(C) `qualifying small power production facility' means a small 
power production facility that the Commission determines, by rule, 
meets such requirements (including requirements respecting minimum 
size, fuel use, and fuel efficiency) as the Commission may, by rule, 
prescribe.''.
    (2) Section 3(18)(B) of the Federal Power Act (16 U.S.C. 
796(18)(B)) is amended to read as follows:
    ``(B) `qualifying cogeneration facility' means a cogeneration 
facility that the Commission determines, by rule, meets such 
requirements (including requirements respecting minimum size, fuel use, 
and fuel efficiency) as the Commission may, by rule, prescribe.''.

SEC. 7063. SMART METERING.

    (a) In General.--Section 111(d) of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following:
            ``(13) Time-based metering and communications.--(A) Not 
        later than eighteen (18) months after the date of enactment of 
        this paragraph, each electric utility shall offer each of its 
        customer classes, and provide individual customers upon 
        customer request, a time-based rate schedule under which the 
        rate charged by the electric utility varies during different 
        time periods and reflects the variance in the costs of 
        generating and purchasing electricity at the wholesale level. 
        The time-based rate schedule shall enable the electric consumer 
        to manage energy use and cost through advanced metering and 
        communications technology.
            ``(B) The types of time-based rate schedules that may be 
        offered under the schedule referred to in subparagraph (A) 
        include, among others, each of the following:
                    ``(i) Time-Of-Use pricing whereby electricity 
                prices are set for a specific time period on an advance 
                or forward basis, typically not changing more often 
                than twice a year. Prices paid for energy consumed 
                during these periods shall be pre-established and known 
                to consumers in advance of such consumption, allowing 
                them to vary their demand and usage in response to such 
                prices and manage their energy costs by shifting usage 
                to a lower cost period or reducing their consumption 
                overall.
                    ``(ii) Critical Peak Pricing whereby time-of-use 
                prices are in effect except for certain peak days, when 
                prices may reflect the costs of generating and 
                purchasing electricity at the wholesale level and when 
                consumers may receive additional discounts for reducing 
                peak period energy consumption.
                    ``(iii) Real-Time pricing whereby electricity 
                prices are set for a specific time period on an 
                advanced or forward basis and may change as often as 
                hourly.
            ``(C) Each electric utility subject to subparagraph (A) 
        shall provide each customer requesting a time-based rate with a 
        time-based meter capable of enabling the utility and customer 
        to offer and receive such rate, respectively.
            ``(D) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(E) In a State that permits third-party marketers to sell 
        electric energy to retail electric consumers, such consumers 
        shall be entitled to receive that same time-based metering and 
        communications device and service as a retail electric consumer 
        of the electric utility.
            ``(F) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall, not later than 
        twelve (12) months after enactment of this paragraph conduct an 
        investigation in accordance with section 115(i) and issue a 
        decision whether it is appropriate to implement the standards 
        set out in subparagraphs (A) and (C).''.
    (b) State Investigation of Demand Response and Time-Based 
Metering.--
    Section 115 of the Public Utilities Regulatory Policies Act of 1978 
(16 U.S.C. 2625) is amended by adding the at the end the following:
    ``(k) Time-Based Metering and Communications.--Each State 
regulatory authority shall, not later than twelve (12) months after 
enactment of this subsection, conduct an investigation and issue a 
decision whether or not it is appropriate for electric utilities to 
provide and install time-based meters and communications devices for 
each of their customers which enable such customers to participate in 
time-based pricing rate schedules and other demand response 
programs.''.
    (c) Federal Assistance on Demand Response.--Section 132(a) of the 
Public Utility Regulatory Polices Act of 1978 (16 U.S.C. 2642(a)) is 
amended by striking ``and'' at the end of paragraph (3), striking the 
period at the end of paragraph (4) and inserting ``; and'', and by 
adding the following at the end thereof:
            ``(5) technologies, techniques and rate-making methods 
        related to advanced metering and communications and the use of 
        these technologies, techniques and methods in demand response 
        programs.''.
    (d) Federal Guidance.--Section 132 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2643) is amended by adding the 
following at the end thereof:
    ``(d) Demand Response.--The Secretary shall be responsible for each 
of the following:
            ``(1) Educating consumers on the availability, advantages 
        and benefits of advanced metering and communications 
        technologies including the funding of demonstration or pilot 
        projects.
            ``(2) Working with States, utilities, other energy 
        providers and advanced metering and communications experts to 
        identify and address barriers to the adoption of demand 
        response programs, and
            ``(3) Within 6 months of enactment, provide the Congress 
        with a report that identifies and quantifies the national 
        benefits of demand response and provides policy recommendations 
        as to how to achieve specific levels of such benefits by 
        January 1, 2005.''.
    (e) Demand Response and Regional Coordination.--
            (1) Policy.--It is the policy of the United States to 
        encourage States to coordinate, on a regional basis, State 
        energy policies to provide reliable and affordable demand 
        response services to the public.
            (2) Technical assistance.--The Secretary of Energy shall 
        provide technical assistance to States and regional 
        organizations formed by two or more States to assist them in--
                    (A) identifying the areas with the greatest demand 
                response potential;
                    (B) identifying and resolving problems in 
                transmission and distribution networks, including 
                through the use of demand response; and
                    (C) developing plans and programs to use demand 
                response to respond to peak demand or emergency needs.
            (3) Report.--The Federal Energy Regulatory Commission shall 
        prepare and publish an annual report, by appropriate region, 
        that assesses demand response resources, including those 
        available from all consumer classes, and which identifies and 
        reviews each of the following:
                    (A) Saturation and penetration rate of advanced 
                meters and communications technologies, devices and 
                systems.
                    (B) Existing demand response programs and time-
                based rate programs.
                    (C) The annual resource contribution of demand 
                resources, including the prior year and following 
                years.
                    (D) The potential for demand response as a 
                quantifiable, reliable resource for regional planning 
                purposes.
                    (E) Steps taken to ensure that, in regional 
                transmission planning and operations, that demand 
                resources are provided equitable treatment as a 
                quantifiable, reliable resource relative to the 
                resource obligations of any load-serving entity, 
                transmission provider or transmitting party.
    (f) Cost Recovery of Demand Response Devices.--It is the policy of 
the United States that time-based pricing and other forms of demand 
response, whereby electricity customers are provided with electricity 
price signals and the ability to benefit by responding to them, shall 
be encouraged and the deployment of such technology and devices that 
enable electricity customers to participate in such pricing and demand 
response systems shall be facilitated. It is further the policy of the 
United States that the benefits of such demand response that accrue to 
those not deploying such technology and devices, but who are part of 
the same regional electricity entity, shall be recognized.

                      Subtitle F--Renewable Energy

SEC. 7071. NET METERING.

    (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
            ``(14) Net metering.--(A) Each electric utility shall make 
        available upon request net metering service to any electric 
        consumer that the electric utility serves.
            ``(B) For purposes of implementing this paragraph, any 
        reference contained in this section to the date of enactment of 
        the Public Utility Regulatory Policies Act of 1978 shall be 
        deemed to be a reference to the date of enactment of this 
        paragraph.
            ``(C) Notwithstanding subsections (b) and (c) of section 
        112, each State regulatory authority shall consider and make a 
        determination concerning whether it is appropriate to implement 
        the standard set out in subparagraph (A) not later than 1 year 
        after the date of enactment of this paragraph.''.
    (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amended by 
adding at the end the following:
    ``(l) Net Metering.--In undertaking the consideration and making 
the determination under section 111 with respect to the standard 
concerning net metering established by section 111(d)(14), the term 
`net metering service' shall mean a service provided in accordance with 
the following standards:
            ``(1) Rates and charges.--An electric utility--
                    ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                    ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
            ``(2) Measurement.--An electric utility that sells electric 
        energy to the owner or operator of an on-site generating 
        facility shall measure the quantity of electric energy produced 
        by the on-site facility and the quantity of electric energy 
        consumed by the owner or operator of an on-site generating 
        facility during a billing period in accordance with normal 
        metering practices.
            ``(3) Electric energy supplied exceeding electric energy 
        generated.--If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility exceeds the 
        quantity of electric energy supplied by the on-site generating 
        facility to the electric utility during the billing period, the 
        electric utility may bill the owner or operator for the net 
        quantity of electric energy sold, in accordance with normal 
        metering practices.
            ``(4) Electric energy generated exceeding electric energy 
        supplied.--If the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                    ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (2); and
                    ``(B) the owner or operator of the on-site 
                generating facility shall be credited for the excess 
                kilowatt-hours generated during the billing period, 
                with the kilowatt-hour credit appearing on the bill for 
                the following billing period.
            ``(5) Safety and performance standards.--An eligible on-
        site generating facility and net metering system used by an 
        electric consumer shall meet all applicable safety, 
        performance, reliability, and interconnection standards 
        established by the National Electrical Code, the Institute of 
        Electrical and Electronics Engineers, and Underwriters 
        Laboratories.
            ``(6) Additional control and testing requirements.--The 
        Commission, after consultation with State regulatory 
        authorities and nonregulated electric utilities and after 
        notice and opportunity for comment, may adopt, by rule, 
        additional control and testing requirements for on-site 
        generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
            ``(7) Definitions.--For purposes of this subsection:
                    ``(A) The term `eligible on-site generating 
                facility' means--
                            ``(i) a facility on the site of a 
                        residential electric consumer with a maximum 
                        generating capacity of 10 kilowatts or less 
                        that is fueled by solar energy, wind energy, or 
                        fuel cells; or
                            ``(ii) a facility on the site of a 
                        commercial electric consumer with a maximum 
                        generating capacity of 500 kilowatts or less 
                        that is fueled solely by a renewable energy 
                        resource, landfill gas, or a high efficiency 
                        system.
                    ``(B) The term `renewable energy resource' means 
                solar, wind, biomass, or geothermal energy.
                    ``(C) The term `high efficiency system' means 
                service fuel cells or combined heat and power.
                    ``(D) The term `net metering' means service to an 
                electric consumer under which electric energy generated 
                by that electric consumer from an eligible on-site 
                generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.''

SEC. 7072. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--Section 1212(a) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(a)) is amended by striking ``and which 
satisfies'' and all that follows through ``Secretary shall establish.'' 
and inserting ``. If there are insufficient appropriations to make full 
payments for electric production from all qualified renewable energy 
facilities in any given year, the Secretary shall assign 60 percent of 
appropriated funds for that year to facilities that use solar, wind, 
geothermal, or closed-loop (dedicated energy crops) biomass 
technologies to generate electricity, and assign the remaining 40 
percent to other projects. The Secretary may, after transmitting to the 
Congress an explanation of the reasons therefor, alter the percentage 
requirements of the preceding sentence.''.
    (b) Qualified Renewable Energy Facility.--Section 1212(b) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(b)) is amended--
            (1) by striking ``a State or any political'' and all that 
        follows through ``nonprofit electrical cooperative'' and 
        inserting ``a not-for-profit electric cooperative, a public 
        utility described in section 115 of the Internal Revenue Code 
        of 1986, a State, Commonwealth, territory, or possession of the 
        United States or the District of Columbia, or a political 
        subdivision thereof, or an Indian tribal government of 
        subdivision thereof,''; and
            (2) by inserting ``landfill gas,'' after ``wind, 
        biomass,''.
    (c) Eligibility Window.--Section 1212(c) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(c)) is amended by striking ``during the 10-
fiscal year period beginning with the first full fiscal year occurring 
after the enactment of this section'' and inserting ``after October 1, 
2003, and before October 1, 2013''.
    (d) Amount of Payment.--Section 1212(e)(1) of the Energy Policy Act 
of 1992 (42 U.S.C. 13317(e)(1)) is amended by inserting ``landfill 
gas,'' after ``wind, biomass,''.
    (e) Sunset.--Section 1212(f) of the Energy Policy Act of 1992 (42 
U.S.C. 13317(f)) is amended by striking ``the expiration of'' and all 
that follows through ``of this section'' and inserting ``September 30, 
2023''.
    (f) Authorization of Appropriations.--Section 1212(g) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(g)) is amended to read as follows:
    ``(g) Authorization of Appropriations.--
            ``(1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as may be necessary to 
        carry out this section for fiscal years 2003 through 2023.
            ``(2) Availability of funds.--Funds made available under 
        paragraph (1) shall remain available until expended.''.

SEC. 7073. RENEWABLE ENERGY ON FEDERAL LANDS.

    (a) Report to Congress.--Within 24 months after the date of 
enactment of this section, the Secretary of the Interior, in 
cooperation with the Secretary of Agriculture, shall develop and report 
to the Congress recommendations on opportunities to develop renewable 
energy on public lands under the jurisdiction of the Secretary of the 
Interior and National Forest System lands under the jurisdiction of the 
Secretary of Agriculture. The report shall include--
            (1) 5-year plans developed by the Secretary of the Interior 
        and the Secretary of Agriculture, respectively, for encouraging 
        the development of wind and solar energy consistent with 
        applicable law and management plans; and
            (2) an analysis of--
                    (A) the use of rights-of-ways, leases, or other 
                methods to develop wind and solar energy on such lands;
                    (B) the anticipated benefits of grants, loans, tax 
                credits, or other provisions to promote wind and solar 
                energy development on such lands; and
                    (C) any issues that the Secretary of the Interior 
                or the Secretary of Agriculture have encountered in 
                managing wind or solar energy projects on such lands, 
                or believe are likely to arise in relation to the 
                development of wind or solar energy on such lands;
            (3) a list, developed in consultation with the Secretary of 
        Energy and the Secretary of Defense, of lands under the 
        jurisdiction of the Department of Energy or Defense that would 
        be suitable for development for wind or solar energy, and any 
        recommended statutory and regulatory mechanisms for such 
development; and
            (4) any recommendations pertaining to the issues addressed 
        in the report.
    (b) National Academy of Sciences Study.--
            (1) In general.--Within 90 days after the date of the 
        enactment of this Act, the Secretary of the Interior shall 
        contract with the National Academy of Sciences to--
                    (A) study the potential for the development of 
                wind, solar, and ocean energy on the Outer Continental 
                Shelf;
                    (B) assess existing Federal authorities for the 
                development of such resources; and
                    (C) recommend statutory and regulatory mechanisms 
                for such development.
            (2) Transmittal of results.--The results of the study shall 
        be transmitted to the Congress within 24 months after the date 
        of the enactment of this Act.

SEC. 7074. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

    (a) Resource Assessment.--Not later than 3 months after the date of 
enactment of this Act, and each year thereafter, the Secretary of 
Energy shall review the available assessments of renewable energy 
resources available within the United States, including solar, wind, 
biomass, ocean, geothermal, and hydroelectric energy resources, and 
undertake new assessments as necessary, taking into account changes in 
market conditions, available technologies, and other relevant factors.
    (b) Contents of Reports.--Not later than 1 year after the date of 
enactment of this Act, and each year thereafter, the Secretary shall 
publish a report based on the assessment under subsection (a). The 
report shall contain--
            (1) a detailed inventory describing the available amount 
        and characteristics of the renewable energy resources; and
            (2) such other information as the Secretary believes would 
        be useful in developing such renewable energy resources, 
        including descriptions of surrounding terrain, population and 
        load centers, nearby energy infrastructure, location of energy 
        and water resources, and available estimates of the costs 
        needed to develop each resource, together with an 
        identification of any barriers to providing adequate 
        transmission for remote sources of renewable energy resources 
        to current and emerging markets, recommendations for removing 
        or addressing such barriers, and ways to provide access to the 
        grid that do not unfairly disadvantage renewable or other 
        energy producers.

 Subtitle G--Market Transparency, Round Trip Trading Prohibition, and 
                              Enforcement

SEC. 7081. MARKET TRANSPARENCY RULES.

    Part II of the Federal Power Act is amended by adding the following 
new section at the end thereof:

``SEC. 219. MARKET TRANSPARENCY RULES.

    ``(a) Commission Rules.--Not later than 180 days after the date of 
enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide the Commission 
and the public with access to such information as is necessary or 
appropriate to facilitate price transparency and participation in 
markets subject to the Commission's jurisdiction. Such systems shall 
provide information about the availability and market price of sales of 
electric energy at wholesale in interstate commerce and transmission of 
electric energy in interstate commerce to the Commission, State 
commissions, buyers and sellers of wholesale electric energy, users of 
transmission services, and the public on a timely basis. The Commission 
shall have authority to obtain such information from any person, and 
any entity described in section 201(f), who sells electric energy at 
wholesale in interstate commerce or provides transmission services in 
interstate commerce.
    ``(b) Exemptions.--The Commission shall exempt from disclosure 
information it determines would, if disclosed, (1) be detrimental to 
the operation of an effective market; or (2) jeopardize system 
security. This section shall not apply to an entity described in 
section 212(k)(2)(B) with respect to transactions for the purchase or 
sale of wholesale electric energy and transmission services within the 
area described in section 212(k)(2)(A).''.

SEC. 7082. PROHIBITION ON ROUND-TRIP TRADING.

    Part II of the Federal Power Act is amended by adding the following 
new section at the end thereof:

``SEC. 220. PROHIBITION ON ROUND-TRIP TRADING.

    ``(a) Prohibition.--It shall be a violation of this Act for any 
person, and any entity described in section 201(f), willfully and 
knowingly to enter into any contract or other arrangement to execute a 
round-trip trade for the purchase or sale of electric energy at 
wholesale.
    ``(b) Definition of Round-Trip Trade.--For the purposes of this 
section, the term `round-trip trade' means a transaction, or 
combination of transactions, in which a person or other entity--
            ``(1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other entity 
        electric energy at wholesale;
            ``(2) simultaneously with entering into the contract 
        described in paragraph (1), arranges a financially offsetting 
        trade with such other person or entity for the same quantity of 
        electric energy so that, collectively, the purchase and sale 
        transactions in themselves result in no financial gain or loss; 
        and
            ``(3) has a specific intent to distort reported revenues, 
        trading volumes, or prices.''.

SEC. 7083. CONFORMING CHANGES.

    Section 201(e) of the Federal Power Act is amended by striking ``or 
212'' and inserting ``212, 215, 216, 217, 218, 219, or 220''. Section 
201(b)(2) of such Act is amended by striking ``and 212'' and inserting 
``212, 215, 216, 217, 218, 219, and 220''.

SEC. 7084. ENFORCEMENT.

    (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended by--
            (1) inserting ``electric utility,'' after ``Any person,''; 
        and
            (2) inserting ``, transmitting utility,'' after 
        ``licensee'' each place it appears.
    (b) Review of Commission Orders.--Section 313(a) of the Federal 
Power Act (16 U.S.C. 8251) is amended by inserting ``electric 
utility,'' after ``person,'' in the first place it appears and by 
striking ``any person unless such person'' and inserting ``any entity 
unless such entity''.
    (c) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
            (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years'';
            (2) in subsection (b), by striking ``$500'' and inserting 
        ``$25,000''; and
            (3) by striking subsection (c).
    (d) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825-1) is amended--
            (1) in subsections (a) and (b), by striking ``section 211, 
        212, 213, or 214'' each place it appears and inserting ``Part 
        II''; and
            (2) in subsection (b), by striking ``$10,000'' and 
        inserting ``$1,000,000''.

                    Subtitle H--Consumer Protections

SEC. 7091. REFUND EFFECTIVE DATE.

    Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended by--
            (1) striking ``the date 60 days after the filing of such 
        complaint nor later than 5 months after the expiration of such 
        60-day period'' in the second sentence and inserting ``the date 
        of the filing of such complaint nor later than 5 months after 
        the filing of such complaint'';
            (2) striking ``60 days after'' in the third sentence and 
        inserting ``of'';
            (3) striking ``expiration of such 60-day period'' in the 
        third sentence and inserting ``publication date''; and
            (4) in the fifth sentence after ``rendered by the'' insert 
        ``date 60 days after the''.

SEC. 7092. JURISDICTION OVER INTERSTATE SALES.

    (a) Scope of Authority.--Section 206 of the Federal Power Act (16 
U.S.C. 824e) is amended by adding the following new subsection at the 
end thereof:
    ``(e)(1) If an entity that is not a public utility (including an 
entity referred to in section 201(f)) voluntarily makes a spot market 
sale of electric energy and such sale violates Commission rules in 
effect at the time of such sale, such entity shall be subject to the 
Commission's refund authority under this section with respect to such 
violation.
    ``(2) This section shall not apply to any entity that is either--
            ``(A) an entity described in section 201(f); or
            ``(B) a rural electric cooperative
that does not sell more than 4,000,000 megawatt hours of electricity 
per year.
    ``(3) For purposes of this subsection, the term `spot market sale' 
means an agreement for the sale of electric energy at wholesale in 
interstate commerce that is for 24 hours or less and that is entered 
into the day of, or the day prior to, delivery.''.
    (b) Conforming Amendments.--(1) Section 206 of the Federal Power 
Act (16 U.S.C. 824e) is amended as follows:
            (A) In subsection (b), in the seventh sentence, by striking 
        ``the public utility to make''.
            (B) In the first sentence of subsection (a), by striking 
        ``hearing had'' and inserting ``hearing held''.
    (2) Section 201(b)(2) of such Act (16 U.S.C. 824(b)(2)) is amended 
as follows:
            (A) In the first sentence by striking ``sections 210'' and 
        inserting ``sections 206(f), 210''.
            (B) In the second sentence by striking ``section 210'' and 
        inserting ``section 206(f), 210,''.
    (3) Section 201(e) of the Federal Power Act is amended by striking 
``section 210'' and inserting ``section 206(f), 210''.
    (c) Uniform Investigation Authority.--Section 307(a) of the Federal 
Power Act (16 U.S.C. 825f(a)) is amended as follows:
            (1) By inserting ``, electric utility, transmitting 
        utility, or other entity'' after ``person'' each time it 
        appears.
            (2) By striking the period at the end of the first sentence 
        and inserting the following: ``or in obtaining information 
        about the sale of electric energy at wholesale in interstate 
        commerce and the transmission of electric energy in interstate 
        commerce.''.
    (d) Sanctity of Contract.--(1) The Federal Energy Regulatory 
Commission shall have no authority to abrogate or modify any provision 
of a contract, except upon a finding, after notice and opportunity for 
a hearing, that such action is necessary to protect the public 
interest, unless such contract expressly provides for a different 
standard of review.
    (2) For purposes of this subsection, a contract is any agreement, 
in effect and subject to the jurisdiction of the Commission--
            (A) under section 4 of the Natural Gas Act or section 205 
        of the Federal Power Act; and
            (B) that is not for sales in an organized exchange or 
        auction spot market.
    (3) This subsection shall not apply to any contract executed before 
the date of enactment of this section unless such contract is an 
interconnection agreement, nor shall this subsection affect the outcome 
in any proceeding regarding any contract for sales of electric power 
executed before the date of enactment of this section.

SEC. 7093. CONSUMER PRIVACY.

    (a) In General.--The Federal Trade Commission shall issue rules 
protecting the privacy of electric consumers from the disclosure of 
consumer information obtained in connection with the sale or delivery 
of electric energy to electric consumers. The Federal Trade Commission 
shall proceed in accordance with section 553 of title 5, United States 
Code, when prescribing a rule under this section.
    (b) State Authority.--If the Federal Trade Commission determines 
that a State's regulations provide equivalent or greater protection 
than the provisions of this section, such State regulations shall apply 
in that State in lieu of the regulations issued by the Commission under 
this section.

SEC. 7094. UNFAIR TRADE PRACTICES.

    (a) Slamming.--The Federal Trade Commission shall issue rules 
prohibiting the change of selection of an electric utility except with 
the informed consent of the electric consumer or if approved by the 
appropriate State regulatory authority.
    (b) Cramming.--The Federal Trade Commission shall issue rules 
prohibiting the sale of goods and services to an electric consumer 
unless expressly authorized by law or the electric consumer.
    (c) Rulemaking.--The Federal Trade Commission shall proceed in 
accordance with section 553 of title 5, United States Code, when 
prescribing a rule under this section.
    (d) State Authority.--If the Federal Trade Commission determines 
that a State's regulations provide equivalent or greater protection 
than the provisions of this section, such State regulations shall apply 
in that State in lieu of the regulations issued by the Commission under 
this section.

          Subtitle I--Merger Review Reform and Accountability

SEC. 7101. MERGER REVIEW REFORM AND ACCOUNTABILITY.

    (a) Merger Review Reform.--Within 180 days after the date of 
enactment of this Act, the Secretary of Energy, in consultation with 
the Federal Energy Regulatory Commission and the Department of Justice, 
shall prepare, and transmit to the Committee on Energy and Commerce of 
the House of Representatives and the Committee on Energy and Natural 
Resources of the Senate each of the following:
            (1) A study of the extent to which the authorities vested 
        in the Federal Energy Regulatory Commission under section 203 
        of the Federal Power Act are duplicative of authorities vested 
        in--
                    (A) other agencies of Federal and State government; 
                and
                    (B) the Federal Energy Regulatory Commission, 
                including under sections 205 and 206 of the Federal 
                Power Act.
            (2) Recommendations on reforms to the Federal Power Act 
        that would eliminate any unnecessary duplication in the 
        exercise of regulatory authority or unnecessary delays in the 
        approval (or disapproval) of applications for the sale, lease, 
        or other disposition of public utility facilities.
    (b) Merger Review Accountability.--Not later than 1 year after the 
date of enactment of this Act and annually thereafter, with respect to 
all orders issued within the preceding year that impose a condition on 
a sale, lease, or other disposition of public utility facilities under 
section 203(b) of the Federal Power Act, the Federal Energy Regulatory 
Commission shall transmit a report to the Committee on Energy and 
Commerce of the House of Representatives and the Committee on Energy 
and Natural Resources of the Senate explaining each of the following:
            (1) The condition imposed.
            (2) Whether the Commission could have imposed such 
        condition by exercising its authority under any provision of 
        the Federal Power Act other than under section 203(b).
            (3) If the Commission could not have imposed such condition 
        other than under section 203(b), why the Commission determined 
        that such condition was consistent with the public interest.

                 Subtitle J--Study of Economic Dispatch

SEC. 7111. STUDY ON THE BENEFITS OF ECONOMIC DISPATCH.

    (a) Study.--The Secretary of Energy, in coordination and 
consultation with the States, shall conduct a study on--
            (1) the procedures currently used by electric utilities to 
        perform economic dispatch,
            (2) identifying possible revisions to those procedures to 
        improve the ability of nonutility generation resources to offer 
        their output for sale for the purpose of inclusion in economic 
        dispatch; and
            (3) the potential benefits to residential, commercial, and 
        industrial electricity consumers nationally and in each state 
        if economic dispatch procedures were revised to improve the 
        ability of nonutility generation resources to offer their 
        output for inclusion in economic dispatch.
    (b) Definition.--The term ``economic dispatch'' when used in this 
section means the operation of generation facilities to produce energy 
at the lowest cost to reliably serve consumers, recognizing any 
operational limits of generation and transmission facilities.
    (c) Report to Congress and the States.--Not later than 90 days 
after the date of enactment of this Act, and on a yearly basis 
following, the Secretary of Energy shall submit a report to the 
Congress and the States on the results of the study conducted under 
subsection (a), including recommendations to the Congress and the 
States for any suggested legislative or regulatory changes.

                            TITLE VIII--COAL

SEC. 8001. AUTHORIZATION OF APPROPRIATIONS.

    (a) Clean Coal Power Initiative.--Except as provided in subsection 
(b), there are authorized to be appropriated to the Secretary to carry 
out the activities authorized by this title $200,000,000 for each of 
the fiscal years 2005 through 2013, to remain available until expended.
    (b) Limit on Use of Funds.--The Secretary shall transmit to the 
Congress the report required by this subsection not later than 
September 30, 2004. Notwithstanding subsection (a), no funds may be 
used to carry out the activities authorized by this title after 
September 30, 2004, unless the report has been transmitted. The report 
shall include, with respect to subsection (a), a 10-year plan 
containing--
            (1) a detailed assessment of whether the aggregate funding 
        levels provided under subsection (a) are the appropriate 
        funding levels for that program;
            (2) a detailed description of how proposals will be 
        solicited and evaluated, including a list of all activities 
        expected to be undertaken;
            (3) a detailed list of technical milestones for each coal 
        and related technology that will be pursued; and
            (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.
    (c) Applicability.--Subsection (b) shall not apply to any project 
begun before September 30, 2004.

SEC. 8002. PROJECT CRITERIA.

    (a) In General.--The Secretary shall not provide funding under this 
title for any project that does not advance efficiency, environmental 
performance, and cost competitiveness well beyond the level of 
technologies that on a full scale are in operation or have been 
demonstrated as of the date of the enactment of this Act.
    (b) Technical Criteria for Clean Coal Power Initiative.--
            (1) Gasification.--(A) In allocating the funds made 
        available under section 8001(a), the Secretary shall ensure 
        that up to 80 percent of the funds are used only for coal-based 
        gasification technologies, including gasification combined 
        cycle, gasification fuel cells, gasification coproduction and 
        hybrid gasification/combustion.
            (B) The Secretary shall set technical milestones specifying 
        emissions levels for projects funded under this paragraph. The 
        milestones shall be designed to increasingly restrict emission 
        levels through the life of the program. The milestones shall be 
        designed to achieve by 2020 coal gasification projects able--
                    (i) to remove 99 percent of sulfur dioxide;
                    (ii) to emit no more than .05 lbs of NOx per 
                million BTU;
                    (iii) to achieve substantial reductions in mercury 
                emissions; and
                    (iv) to achieve a thermal efficiency of--
                            (I) 60 percent for coal of more than 9,000 
                        Btu;
                            (II) 59 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (III) 50 percent for coal of less than 
                        7,000 Btu.
            (2) Other projects.--For projects not described in 
        paragraph (1), the Secretary shall set technical milestones 
        specifying emissions levels. The milestones shall be designed 
        to increasingly restrict emission levels through the life of 
        the program. The milestones shall be designed to achieve by 
        2010 projects able--
                    (A) to remove 97 percent of sulfur dioxide;
                    (B) to emit no more than .08 lbs of NOx per million 
                BTU;
                    (C) to achieve substantial reductions in mercury 
                emissions; and
                    (D) except as provided in paragraph (4), to achieve 
                a thermal efficiency of--
                            (i) 45 percent for coal of more than 9,000 
                        Btu;
                            (ii) 44 percent for coal of 7,000 to 9,000 
                        Btu; and
                            (iii) 42 percent for coal of less than 
                        7,000 Btu.
            (3) Consultation.--Before setting the technical milestones 
        under paragraphs (1)(B) and (2), the Secretary shall consult 
        with the Administrator of the Environmental Protection Agency 
        and interested entities, including coal producers, industries 
        using coal, organizations to promote coal or advanced coal 
        technologies, environmental organizations, and organizations 
        representing workers.
            (4) Existing units.--In the case of projects at existing 
        units, in lieu of the thermal efficiency requirements set forth 
        in paragraph (1)(B)(iv) and (2)(D), the projects shall be 
        designed to achieve an overall thermal design efficiency 
        improvement compared to the efficiency of the unit as operated, 
        of not less than--
                    (A) 7 percent for coal of more than 9,000 Btu;
                    (B) 6 percent for coal of 7,000 to 9,000 Btu; or
                    (C) 4 percent for coal of less than 7,000 Btu.
            (5) Permitted uses.--In allocating funds made available 
        under section 8001, the Secretary may fund projects that 
        include, as part of the project, the separation and capture of 
        carbon dioxide.
    (c) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that--
            (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
            (2) the recipient will provide sufficient information to 
        the Secretary for the Secretary to ensure that the award funds 
        are spent efficiently and effectively; and
            (3) a market exists for the technology being demonstrated 
        or applied, as evidenced by statements of interest in writing 
        from potential purchasers of the technology.
    (d) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of subsections (a), 
(b), and (c) and are likely to--
            (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
            (2) improve the competitiveness of coal among various forms 
        of energy in order to maintain a diversity of fuel choices in 
        the United States to meet electricity generation requirements; 
        and
            (3) demonstrate methods and equipment that are applicable 
        to 25 percent of the electricity generating facilities, 
        utilizing different types of coal, that use coal as the primary 
        feedstock as of the date of the enactment of this Act.
    (e) Federal Share.--The Federal share of the cost of a project 
funded by the Secretary under this title shall not exceed 50 percent.
    (f) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under this title.

SEC. 8003. REPORT.

    Not later than 1 year after the date of the enactment of this Act, 
and once every 2 years thereafter for the following 8 years, the 
Secretary, in consultation with other appropriate Federal agencies, 
shall transmit to the Congress a report describing--
            (1) the technical milestones set forth in section 8002 and 
        how those milestones ensure progress toward meeting the 
        requirements of subsections (b)(1)(B) and (b)(2) of section 
        8002; and
            (2) the status of projects funded under this title.

SEC. 8004. CLEAN COAL CENTERS OF EXCELLENCE.

    As part of the program authorized in section 8001, the Secretary 
shall award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.

                         TITLE IX--MOTOR FUELS

                     Subtitle A--General Provisions

SEC. 9101. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.

    (a) In General.--Section 211 of the Clean Air Act (42 U.S.C. 7545) 
is amended--
            (1) by redesignating subsection (o) as subsection (q); and
            (2) by inserting after subsection (n) the following:
    ``(o) Renewable Fuel Program.--
            ``(1) Definitions.--In this section:
                    ``(A) Cellulosic biomass ethanol.--The term 
                `cellulosic biomass ethanol' means ethanol derived from 
                any lignocellulosic or hemicellulosic matter that is 
                available on a renewable or recurring basis, 
                including--
                            ``(i) dedicated energy crops and trees;
                            ``(ii) wood and wood residues;
                            ``(iii) plants;
                            ``(iv) grasses;
                            ``(v) agricultural residues;
                            ``(vi) fibers;
                            ``(vii) animal wastes and other waste 
                        materials; and
                            ``(viii) municipal solid waste.
                    ``(B) Renewable fuel.--
                            ``(i) In general.--The term `renewable 
                        fuel' means motor vehicle fuel that--
                                    ``(I)(aa) is produced from grain, 
                                starch, oilseeds, or other biomass; or
                                    ``(bb) is natural gas produced from 
                                a biogas source, including a landfill, 
                                sewage waste treatment plant, feedlot, 
                                or other place where decaying organic 
                                material is found; and
                                    ``(II) is used to replace or reduce 
                                the quantity of fossil fuel present in 
                                a fuel mixture used to operate a motor 
                                vehicle.
                            ``(ii) Inclusion.--The term `renewable 
                        fuel' includes cellulosic biomass ethanol and 
                        biodiesel (as defined in section 312(f) of the 
                        Energy Policy Act of 1992 (42 U.S.C. 13220(f)) 
                        and any blending components derived from 
                        renewable fuel (provided that only the 
                        renewable fuel portion of any such blending 
                        component shall be considered part of the 
                        applicable volume under the renewable fuel 
                        program established by this subsection).
                    ``(C) Small refinery.--The term `small refinery' 
                means a refinery for which average aggregate daily 
                crude oil throughput for the calendar year (as 
                determined by dividing the aggregate throughput for the 
                calendar year by the number of days in the calendar 
                year) does not exceed 75,000 barrels.
            ``(2) Renewable fuel program.--
                    ``(A) In general.--Not later than 1 year from 
                enactment of this provision, the Administrator shall 
                promulgate regulations ensuring that gasoline sold or 
                dispensed to consumers in the contiguous United States, 
                on an annual average basis, contains the applicable 
                volume of renewable fuel as specified in subparagraph 
                (B). Regardless of the date of promulgation, such 
                regulations shall contain compliance provisions for 
                refiners, blenders, and importers, as appropriate, to 
                ensure that the requirements of this section are met, 
                but shall not restrict where renewables can be used, or 
                impose any per-gallon obligation for the use of 
                renewables. If the Administrator does not promulgate 
                such regulations, the applicable percentage, on a 
                volume percentage of gasoline basis, shall be 1.62 in 
                2005.
                    ``(B) Applicable volume.--
                            ``(i) Calendar years 2005 through 2015.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for any of calendar years 
                        2005 through 2015 shall be determined in 
                        accordance with the following 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
                2010.......................................         3.4
                2011.......................................         3.4
                2012.......................................         4.2
                2013.......................................         4.2
                2014.......................................         4.2
                2015.......................................        5.0.
                            ``(ii) Calendar year 2016 and thereafter.--
                        For the purpose of subparagraph (A), the 
                        applicable volume for calendar year 2016 and 
                        each calendar year thereafter shall be equal to 
                        the product obtained by multiplying--
                                    ``(I) the number of gallons of 
                                gasoline that the Administrator 
                                estimates will be sold or introduced 
                                into commerce in the calendar year; and
                                    ``(II) the ratio that--
                                            ``(aa) 5.0 billion gallons 
                                        of renewable fuels; bears to
                                            ``(bb) the number of 
                                        gallons of gasoline sold or 
                                        introduced into commerce in 
                                        calendar year 2015.
            ``(3) Applicable percentages.--Not later than October 31 of 
        each calendar year after 2002, the Administrator of the Energy 
        Information Administration shall provide the Administrator an 
        estimate of the volumes of gasoline sales in the United States 
        for the coming calendar year. Based on such estimates, the 
        Administrator shall, by November 30 of each calendar year after 
        2003, determine and publish in the Federal Register, the 
        renewable fuel obligation, on a volume percentage of gasoline 
        basis, applicable to refiners, blenders, and importers, as 
        appropriate, for the coming calendar year, to ensure that the 
        requirements of paragraph (2) are met. For each calendar year, 
        the Administrator shall establish a single applicable 
        percentage that applies to all parties, and make provision to 
        avoid redundant obligations. In determining the applicable 
        percentages, the Administrator shall make adjustments to 
        account for the use of renewable fuels by exempt small 
        refineries during the previous year.
            ``(4) Cellulosic biomass ethanol.--For the purpose of 
        paragraph (2), 1 gallon of cellulosic biomass ethanol shall be 
        considered to be the equivalent of 1.5 gallon of renewable 
        fuel.
            ``(5) Credit program.--
                    ``(A) In general.--The regulations promulgated to 
                carry out this subsection shall provide for the 
                generation of an appropriate amount of credits by any 
                person that refines, blends, or imports gasoline that 
                contains a quantity of renewable fuel that is greater 
                than the quantity required under paragraph (2). Such 
                regulations shall provide for the generation of an 
                appropriate amount of credits for biodiesel fuel. If a 
                small refinery notifies the Administrator that it 
                waives the exemption provided by this Act, the 
                regulations shall provide for the generation of credits 
                by the small refinery beginning in the year following 
                such notification.
                    ``(B) Use of credits.--A person that generates 
                credits under subparagraph (A) may use the credits, or 
                transfer all or a portion of the credits to another 
                person, for the purpose of complying with paragraph 
                (2).
                    ``(C) Life of credits.--A credit generated under 
                this paragraph shall be valid to show compliance:
                            ``(i) in the calendar year in which the 
                        credit was generated or the next calendar year, 
                        or
                            ``(ii) in the calendar year in which the 
                        credit was generated or next two consecutive 
                        calendar years if the Administrator promulgates 
                        regulations under paragraph (6).
                    ``(D) Inability to purchase sufficient credits.--
                The regulations promulgated to carry out this 
subsection shall include provisions allowing any person that is unable 
to generate or purchase sufficient credits to meet the requirements 
under paragraph (2) to carry forward a renewables deficit provided 
that, in the calendar year following the year in which the renewables 
deficit is created, such person shall achieve compliance with the 
renewables requirement under paragraph (2), and shall generate or 
purchase additional renewables credits to offset the renewables deficit 
of the previous year.
            ``(6) Seasonal variations in renewable fuel use.--
                    ``(A) Study.--For each of calendar years 2005 
                through 2015, the Administrator of the Energy 
                Information Administration, shall conduct a study of 
                renewable fuels blending to determine whether there are 
                excessive seasonal variations in the use of renewable 
                fuels.
                    ``(B) Regulation of excessive seasonal 
                variations.--If, for any calendar year, the 
                Administrator of the Energy Information Administration, 
                based on the study under subparagraph (A), makes the 
                determinations specified in subparagraph (C), the 
                Administrator shall promulgate regulations to ensure 
                that 35 percent or more of the quantity of renewable 
                fuels necessary to meet the requirement of paragraph 
                (2) is used during each of the periods specified in 
                subparagraph (D) of each subsequent calendar year.
                    ``(C) Determinations.--The determinations referred 
                to in subparagraph (B) are that--
                            ``(i) less than 35 percent of the quantity 
                        of renewable fuels necessary to meet the 
                        requirement of paragraph (2) has been used 
                        during one of the periods specified in 
                        subparagraph (D) of the calendar year;
                            ``(ii) a pattern of excessive seasonal 
                        variation described in clause (i) will continue 
                        in subsequent calendar years; and
                            ``(iii) promulgating regulations or other 
                        requirements to impose a 35% or more seasonal 
                        use of renewable fuels will not prevent or 
                        interfere with the attainment of national 
                        ambient air quality standards or significantly 
                        increase the price of motor fuels to the 
                        consumer.
                    ``(D) Periods.--The two periods referred to in this 
                paragraph are--
                            ``(i) April through September; and
                            ``(ii) January through March and October 
                        through December.
                    ``(E) Exclusions.--Renewable fuels blended or 
                consumed in 2005 in a State which has received a waiver 
                under section 209(b) shall not be included in the study 
                in subparagraph (A).
            ``(7) Waivers.--
                    ``(A) In general.--The Administrator, in 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy, may waive the requirement of 
                paragraph (2) in whole or in part on petition by one or 
                more States by reducing the national quantity of 
                renewable fuel required under this subsection--
                            ``(i) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that implementation of 
                        the requirement would have a significant and 
                        meaningful adverse impact on the economy or 
                        environment of a State, a region, or the United 
                        States, or will prevent or interfere with the 
                        attainment of a national ambient air quality 
                        standard in any area of a State; or
                            ``(ii) based on a determination by the 
                        Administrator, after public notice and 
                        opportunity for comment, that there is an 
                        inadequate domestic supply or distribution 
                        capacity to meet the requirement.
                     ``(B) Petitions for waivers.--The Administrator, 
                in consultation with the Secretary of Agriculture and 
                the Secretary of Energy, shall approve or disapprove a 
                State petition for a waiver of the requirement of 
                paragraph (2) within 90 days after the date on which 
                the petition is received by the Administrator. If the 
                Administrator does not act to approve or disapprove a 
                State petition for a waiver within 90 days, the 
                Administrator shall publish a notice setting forth the 
                reasons for not acting within the required 90-day 
                period.
                    ``(C) Termination of waivers.--A waiver granted 
                under subparagraph (A) shall terminate after 1 year, 
                but may be renewed by the Administrator after 
                consultation with the Secretary of Agriculture and the 
                Secretary of Energy.
            ``(8) Study and waiver for initial year of program.--Not 
        later than 180 days from enactment, the Secretary of Energy 
        shall complete for the Administrator a study assessing whether 
        the renewable fuels requirement under paragraph (2) will likely 
        result in significant adverse consumer impacts in 2005, on a 
        national, regional or State basis. Such study shall evaluate 
        renewable fuel supplies and prices, blendstock supplies, and 
        supply and distribution system capabilities. Based on such 
        study, the Secretary shall make specific recommendations to the 
        Administrator regarding waiver of the requirements of paragraph 
        (2), in whole or in part, to avoid any such adverse impacts. 
        Within 270 days from enactment, the Administrator shall, 
        consistent with the recommendations of the Secretary waive, in 
        whole or in part, the renewable fuels requirement under 
        paragraph (2) by reducing the national quantity of renewable 
        fuel required under this subsection in 2005. This provision 
        shall not be interpreted as limiting the Administrator's 
        authority to waive the requirements of paragraph (2) in whole, 
        or in part, under paragraph (7) or paragraph (9), pertaining to 
        waivers.
            ``(9) Assessment and waiver.--The Secretary of Energy, in 
        consultation with the Administrator of the Environmental 
        Protection Agency and the Secretary of Agriculture on his own 
        motion, or upon petition of any State shall evaluate the 
        requirement of paragraph (2) and determine, prior to January 1, 
2007, or prior to January 1 of any subsequent year in which the 
applicable volume of renewable fuel is increased under paragraph 
(2)(B), whether the requirement of paragraph (2), including the 
applicable volume of renewable fuel contained in paragraph (2)(B) 
should remain in effect, in whole or in part, during 2007 or any year 
or years subsequent to 2007. In evaluating the requirement of paragraph 
(2) and in making any determination under this section, the Secretary 
shall consider the best available information and data collected by 
accepted methods or best available means regarding--
                    ``(A) the capacity of renewable fuel producers to 
                supply an adequate amount of renewable fuel at 
                competitive prices to fulfill the requirement in 
                paragraph (2);
                    ``(B) the potential of the requirement in paragraph 
                (2) to significantly raise the price of gasoline, food 
                or heating oil for consumers in any significant area or 
                region of the country above the price that would 
                otherwise apply to such commodities in the absence of 
                the requirement;
                    ``(C) the potential of the requirement in paragraph 
                (2) to interfere with the supply of fuel in any 
                significant gasoline market or region of the country, 
                including interference with the efficient operation of 
                refiners, blenders, importers, wholesale suppliers, and 
                retail vendors of gasoline, and other motor fuels; and
                    ``(D) the potential of the requirement to cause or 
                promote exceedences of Federal, State, or local air 
                quality standards.
        If the Secretary determines, after public notice and the 
        opportunity for comment, that the requirement of paragraph (2) 
        would have significant and meaningful adverse impact on the 
        supply of fuel and related infrastructure or on the economy, 
        environment, public health or environment of any significant 
        area or region of the country, the Secretary may waive, in 
        whole or in part, the requirement of paragraph (2) in any one 
        year or period of years as well as reduce the applicable volume 
        of renewable fuel contained in paragraph (2)(B) in any one year 
        or period of years.
            ``(10) Small refineries.--
                    ``(A) In general.--The requirement of paragraph (2) 
                shall not apply to small refineries until the first 
                calendar year beginning more than 5 years after the 
                first year set forth in the table in paragraph 
                (2)(B)(i). Not later than December 31, 2006, the 
                Secretary of Energy shall complete for the 
                Administrator a study to determine whether the 
                requirement of paragraph (2) would impose a 
                disproportionate economic hardship on small refineries. 
                For any small refinery that the Secretary of Energy 
                determines would experience a disproportionate economic 
                hardship, the Administrator shall extend the small 
                refinery exemption for such small refinery for no less 
                than two additional years.
                    ``(B) Economic hardship.--
                            ``(i) Extension of exemption.--A small 
                        refinery may at any time petition the 
                        Administrator for an extension of the exemption 
                        from the requirement of paragraph (2) for the 
                        reason of disproportionate economic hardship. 
                        In evaluating a hardship petition, the 
                        Administrator, in consultation with the 
                        Secretary of Energy, shall consider the 
                        findings of the study in addition to other 
                        economic factors.
                            ``(ii) Deadline for action on petitions.--
                        The Administrator shall act on any petition 
                        submitted by a small refinery for a hardship 
                        exemption not later than 90 days after the 
                        receipt of the petition.
                    ``(C) Credit program.--If a small refinery notifies 
                the Administrator that it waives the exemption provided 
                by this Act, the regulations shall provide for the 
                generation of credits by the small refinery beginning 
                in the year following such notification.
                    ``(D) Opt-in for small refiners.--A small refinery 
                shall be subject to the requirements of this section if 
                it notifies the Administrator that it waives the 
                exemption under subparagraph (A).''.
    (b) Penalties and Enforcement.--Section 211(d) of the Clean Air Act 
(42 U.S.C. 7545(d)) is amended--
            (1) in paragraph (1)--
                    (A) in the first sentence, by striking ``or (n)'' 
                each place it appears and inserting ``(n) or (o)''; and
                    (B) in the second sentence, by striking ``or (m)'' 
                and inserting ``(m), or (o)''; and
            (2) in the first sentence of paragraph (2), by striking 
        ``and (n)'' each place it appears and inserting ``(n), and 
        (o)''.
    (c) Survey of Renewable Fuel Market.--
            (1) Survey and report.--Not later than December 1, 2006, 
        and annually thereafter, the Administrator of the Environmental 
        Protection Agency (in consultation with the Secretary of Energy 
        acting through the Administrator of the Energy Information 
        Administration) shall--
                    (A) conduct, with respect to each conventional 
                gasoline use area and each reformulated gasoline use 
                area in each State, a survey to determine the market 
                shares of--
                            (i) conventional gasoline containing 
                        ethanol;
                            (ii) reformulated gasoline containing 
                        ethanol;
                            (iii) conventional gasoline containing 
                        renewable fuel; and
                            (iv) reformulated gasoline containing 
                        renewable fuel; and
                    (B) submit to Congress, and make publicly 
                available, a report on the results of the survey under 
                subparagraph (A).
            (2) Recordkeeping and reporting requirements.--The 
        Administrator may require any refiner, blender, or importer to 
        keep such records and make such reports as are necessary to 
ensure that the survey conducted under paragraph (1) is accurate. The 
Administrator shall rely, to the extent practicable, on existing 
reporting and recordkeeping requirements to avoid duplicative 
requirements.
            (3) Applicable law.--Activities carried out under this 
        subsection shall be conducted in a manner designed to protect 
        confidentiality of individual responses.
            (4) Calculation of market shares.--Market shares for 
        conventional gasoline and reformulated gasoline use areas will 
        be calculated on a statewide basis using information collected 
        under paragraph (2) and other information available to the 
        Administrator. Market share information may be based upon 
        gasoline distribution patterns that include multistate use 
        areas.

SEC. 9102. FUELS SAFE HARBOR.

    (a) In General.--Notwithstanding any other provision of Federal or 
State law, no renewable fuel, as defined by section 211(o)(1) of the 
Clean Air Act, or fuel containing MTBE, used or intended to be used as 
a motor vehicle fuel, nor any motor vehicle fuel containing such 
renewable fuel or MTBE, shall be deemed defective in design or 
manufacture by virtue of the fact that it is, or contains, such a 
renewable fuel or MTBE, if it does not violate a control or prohibition 
imposed by the Administrator under section 211 of such Act, and the 
manufacturer is in compliance with all requests for information under 
subsection (b) of such section 211(b) of the Clean Air Act. If the safe 
harbor provided by this section does not apply, the existence of a 
design defect or manufacturing defect shall be determined under 
otherwise applicable law. Nothing in this paragraph shall be construed 
to affect the liability of any person for environmental remediation 
costs, drinking water contamination, negligence, public nuisance or any 
other liability other than liability for a defect in design or 
manufacture of a motor vehicle fuel.
    (b) Effective Date.--This section shall be effective as of the date 
of enactment and shall apply with respect to all claims filed on or 
after that date.

SEC. 9103. FINDINGS AND MTBE TRANSITION ASSISTANCE.

    (a) Findings.--Congress finds that--
            (1) since 1979, methyl tertiary butyl ether (referred to in 
        this section as ``MTBE'') has been used nationwide at low 
        levels in gasoline to replace lead as an octane booster or 
        anti-knocking agent;
            (2) Public Law 101-549 (commonly known as the ``Clean Air 
        Act Amendments of 1990'') (42 U.S.C. 7401 et seq.) established 
        a fuel oxygenate standard under which reformulated gasoline 
        must contain at least 2 percent oxygen by weight;
            (3) at the time of the adoption of the fuel oxygen 
        standard, Congress was aware that significant use of MTBE would 
        result from the adoption of that standard, and that the use of 
        MTBE would likely be important to the cost-effective 
        implementation of that program;
            (4) Congress was aware that gasoline and its component 
        additives can and do leak from storage tanks;
            (5) the fuel industry responded to the fuel oxygenate 
        standard established by Public Law 101-549 by making 
        substantial investments in--
                    (A) MTBE production capacity; and
                    (B) systems to deliver MTBE-containing gasoline to 
                the marketplace;
            (6) Congress has--
                    (A) reconsidered the relative value of the 
                oxygenate requirement for reformulated gasoline; and
                    (B) decided to provide for the elimination of the 
                oxygenate requirement for reformulated gasoline and to 
                provide for a renewable content requirement for motor 
                fuel; and
            (7) it is appropriate for Congress to provide some limited 
        transition assistance--
                    (A) to merchant producers of MTBE who produced MTBE 
                in response to a market created by the oxygenate 
                requirement contained in the Clean Air Act; and
                    (B) for the purpose of mitigating any fuel supply 
                problems that may result from the elimination of the 
                oxygenate requirement for reformulated gasoline.
    (b) Purposes.--The purpose of this section is to provide assistance 
to merchant producers of MTBE in making the transition from producing 
MTBE to producing other fuel additives.
    (c) MTBE Merchant Producer Conversion Assistance.--Section 211(c) 
of the Clean Air Act (42 U.S.C. 7545(c)) is amended by adding at the 
end the following:
            ``(5) MTBE merchant producer conversion assistance.--
                    ``(A) In general.--
                            ``(i) Grants.--The Secretary of Energy, in 
                        consultation with the Administrator, may make 
                        grants to merchant producers of methyl tertiary 
                        butyl ether in the United States to assist the 
                        producers in the conversion of eligible 
                        production facilities described in subparagraph 
                        (C) to the production of iso-octane and 
                        alkylates.
                            ``(ii) Determination.--The Administrator, 
                        in consultation with the Secretary of Energy, 
                        may determine that transition assistance for 
                        the production of iso-octane and alkylates is 
                        inconsistent with the provisions of 
                        subparagraph (B) and, on that basis, may deny 
                        applications for grants authorized by this 
                        provision.
                    ``(B) Further grants.--The Secretary of Energy, in 
                consultation with the Administrator, may also further 
                make grants to merchant producers of MTBE in the United 
                States to assist the producers in the conversion of 
                eligible production facilities described in 
                subparagraph (C) to the production of such other fuel 
                additives that, consistent with this subsection--
                            ``(i) unless the Administrator determines 
                        that such fuel additives may reasonably be 
                        anticipated to endanger public health or the 
                        environment;
                            ``(ii) have been registered and have been 
                        tested or are being tested in accordance with 
                        the requirements of this section; and
                            ``(iii) will contribute to replacing 
                        gasoline volumes lost as a result of paragraph 
                        (5).
                    ``(C) Eligible production facilities.--A production 
                facility shall be eligible to receive a grant under 
                this paragraph if the production facility--
                            ``(i) is located in the United States; and
                            ``(ii) produced methyl tertiary butyl ether 
                        for consumption before April 1, 2003 and ceased 
                        production at any time after the date of 
                        enactment.
                    ``(D) Authorization of appropriations.--There is 
                authorized to be appropriated to carry out this 
                paragraph $250,000,000 for each of fiscal years 2004 
                through 2006, to remain available until expended.''.
    (d) Effect on State Law.--The amendments made to the Clean Air Act 
by this title have no effect regarding any available authority of 
States to limit the use of methyl tertiary butyl ether in motor vehicle 
fuel.

SEC. 9104. ELIMINATION OF OXYGEN CONTENT REQUIREMENT FOR REFORMULATED 
              GASOLINE.

    (a) Elimination.--
            (1) In general.--Section 211(k) of the Clean Air Act (42 
        U.S.C. 7545(k)) is amended--
                    (A) in paragraph (2)--
                            (i) in the second sentence of subparagraph 
                        (A), by striking ``(including the oxygen 
                        content requirement contained in subparagraph 
                        (B))'';
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraphs (C) 
                        and (D) as subparagraphs (B) and (C), 
                        respectively;
                    (B) in paragraph (3)(A), by striking clause (v);
                    (C) in paragraph (7)--
                            (i) in subparagraph (A)--
                                    (I) by striking clause (i); and
                                    (II) by redesignating clauses (ii) 
                                and (iii) as clauses (i) and (ii), 
                                respectively; and
                            (ii) in subparagraph (C)--
                                    (I) by striking clause (ii); and
                                    (II) by redesignating clause (iii) 
                                as clause (ii); and
            (2) Effective date.--The amendments made by paragraph (1) 
        take effect 270 days after the date of enactment of this Act, 
        except that such amendments shall take effect upon enactment in 
        any State that has received a waiver under section 209(b) of 
        the Clean Air Act.
    (b) Maintenance of Toxic Air Pollutant Emission Reductions.--
Section 211(k)(1) of the Clean Air Act (42 U.S.C. 7545(k)(1)) is 
amended--
            (1) by striking ``Within 1 year after the enactment of the 
        Clean Air Act Amendments of 1990,'' and inserting the 
        following:
                    ``(A) In general.--Not later than November 15, 
                1991,''; and
            (2) by adding at the end the following:
                    ``(B) Maintenance of toxic air pollutant emissions 
                reductions from reformulated gasoline.--
                            ``(i) Definitions.--In this subparagraph 
                        the term `PADD' means a Petroleum 
                        Administration for Defense District.
                            ``(ii) Regulations regarding emissions of 
                        toxic air pollutants.--Not later than 270 days 
                        after the date of enactment of this 
                        subparagraph the Administrator shall establish, 
                        for each refinery or importer, standards for 
                        toxic air pollutants from use of the 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer that maintain the 
                        reduction of the average annual aggregate 
                        emissions of toxic air pollutants for 
                        reformulated gasoline produced or distributed 
                        by the refinery or importer during calendar 
                        years 1999 and 2000, determined on the basis of 
                        data collected by the Administrator with 
                        respect to the refinery or importer.
                            ``(iii) Standards applicable to specific 
                        refineries or importers.--
                                    ``(I) Applicability of standards.--
                                For any calendar year, the standards 
                                applicable to a refinery or importer 
                                under clause (ii) shall apply to the 
                                quantity of gasoline produced or 
                                distributed by the refinery or importer 
                                in the calendar year only to the extent 
                                that the quantity is less than or equal 
                                to the average annual quantity of 
                                reformulated gasoline produced or 
                                distributed by the refinery or importer 
                                during calendar years 1999 and 2000.
                                    ``(II) Applicability of other 
                                standards.--For any calendar year, the 
                                quantity of gasoline produced or 
                                distributed by a refinery or importer 
                                that is in excess of the quantity 
                                subject to subclause (I) shall be 
                                subject to standards for toxic air 
                                pollutants promulgated under 
                                subparagraph (A) and paragraph (3)(B).
                            ``(iv) Credit program.--The Administrator 
                        shall provide for the granting and use of 
                        credits for emissions of toxic air pollutants 
                        in the same manner as provided in paragraph 
                        (7).
                            ``(v) Regional protection of toxics 
                        reduction baselines.--
                                    ``(I) In general.--Not later than 
                                60 days after the date of enactment of 
                                this subparagraph, and not later than 
                                April 1 of each calendar year that 
                                begins after that date of enactment, 
                                the Administrator shall publish in the 
                                Federal Register a report that 
                                specifies, with respect to the previous 
calendar year--
                                            ``(aa) the quantity of 
                                        reformulated gasoline produced 
                                        that is in excess of the 
                                        average annual quantity of 
                                        reformulated gasoline produced 
                                        in 1999 and 2000; and
                                            ``(bb) the reduction of the 
                                        average annual aggregate 
                                        emissions of toxic air 
                                        pollutants in each PADD, based 
                                        on retail survey data or data 
                                        from other appropriate sources.
                                    ``(II) Effect of failure to 
                                maintain aggregate toxics reductions.--
                                If, in any calendar year, the reduction 
                                of the average annual aggregate 
                                emissions of toxic air pollutants in a 
                                PADD fails to meet or exceed the 
                                reduction of the average annual 
                                aggregate emissions of toxic air 
                                pollutants in the PADD in calendar 
                                years 1999 and 2000, the Administrator, 
                                not later than 90 days after the date 
                                of publication of the report for the 
                                calendar year under subclause (I), 
                                shall--
                                            ``(aa) identify, to the 
                                        maximum extent practicable, the 
                                        reasons for the failure, 
                                        including the sources, volumes, 
                                        and characteristics of 
                                        reformulated gasoline that 
                                        contributed to the failure; and
                                            ``(bb) promulgate revisions 
                                        to the regulations promulgated 
                                        under clause (ii), to take 
                                        effect not earlier than 180 
                                        days but not later than 270 
                                        days after the date of 
                                        promulgation, to provide that, 
                                        notwithstanding clause 
                                        (iii)(II), all reformulated 
                                        gasoline produced or 
                                        distributed at each refinery or 
                                        importer shall meet the 
                                        standards applicable under 
                                        clause (ii) not later than 
                                        April 1 of the year following 
                                        the report in subclause (II) 
                                        and for subsequent years.
                            ``(vi) Regulations to control hazardous air 
                        pollutants from motor vehicles and motor 
                        vehicle fuels.--Not later than July 1, 2004, 
                        the Administrator shall promulgate final 
                        regulations to control hazardous air pollutants 
                        from motor vehicles and motor vehicle fuels, as 
                        provided for in section 80.1045 of title 40, 
                        Code of Federal Regulations (as in effect on 
                        the date of enactment of this subparagraph).''.
    (c) Consolidation in Reformulated Gasoline Regulations.--Not later 
than 180 days after the date of enactment of this Act, the 
Administrator shall revise the reformulated gasoline regulations under 
subpart D of part 80 of title 40, Code of Federal Regulations, to 
consolidate the regulations applicable to VOC-Control Regions 1 and 2 
under section 80.41 of that title by eliminating the less stringent 
requirements applicable to gasoline designated for VOC-Control Region 2 
and instead applying the more stringent requirements applicable to 
gasoline designated for VOC-Control Region 1.
    (d) Savings Clause.--Nothing in this section is intended to affect 
or prejudice either any legal claims or actions with respect to 
regulations promulgated by the Administrator prior to enactment of this 
Act regarding emissions of toxic air pollutants from motor vehicles or 
the adjustment of standards applicable to a specific refinery or 
importer made under such prior regulations and the Administrator may 
apply such adjustments to the standards applicable to such refinery or 
importer under clause (iii)(I) of section 211(k)(1)(B) of the Clean Air 
Act, except that--
            (1) the Administrator shall revise such adjustments to be 
        based only on calendar years 1999-2000, and
            (2) for adjustments based on toxic air pollutant emissions 
        from reformulated gasoline significantly below the national 
        annual average emissions of toxic air pollutants from all 
        reformulated gasoline, the Administrator may revise such 
        adjustments to take account of the scope of any lawful and 
        enforceable Federal or State prohibition on methyl tertiary 
        butyl ether imposed after the effective date of the enactment 
        of this paragraph, except that any such adjustment shall 
        require such refiner or importer, to the greatest extent 
        practicable, to maintain the reduction achieved during calendar 
        year 1999-2000 in the average annual aggregate emissions of 
        toxic air pollutants from reformulated gasoline produced or 
        distributed by the refinery or importer. Any such adjustment 
        shall not be made at a level below the average percentage of 
        reductions of emissions of toxic air pollutants for 
        reformulated gasoline supplied to PADD I during calendar years 
        1999-2000.

SEC. 9105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.

    Section 211 of the Clean Air Act (42 U.S.C. 7545) is amended by 
inserting after subsection (o) the following:
    ``(p) Analyses of Motor Vehicle Fuel Changes and Emissions Model.--
            ``(1) Anti-backsliding analysis.--
                    ``(A) Draft analysis.--Not later than 4 years after 
                the date of enactment of this paragraph, the 
                Administrator shall publish for public comment a draft 
                analysis of the changes in emissions of air pollutants 
                and air quality due to the use of motor vehicle fuel 
                and fuel additives resulting from implementation of the 
                amendments made by title IX of the Energy Policy Act of 
                2003.
                    ``(B) Final analysis.--After providing a reasonable 
                opportunity for comment but not later than 5 years 
                after the date of enactment of this paragraph, the 
                Administrator shall publish the analysis in final form.
            ``(2) Emissions model.--For the purposes of this 
        subsection, as soon as the necessary data are available, the 
        Administrator shall develop and finalize an emissions model 
        that reasonably reflects the effects of gasoline 
        characteristics or components on emissions from vehicles in the 
motor vehicle fleet during calendar year 2005.''.

SEC. 9106. DATA COLLECTION.

    Section 205 of the Department of Energy Organization Act (42 U.S.C. 
7135) is amended by adding at the end the following:
    ``(m) Renewable fuels survey.--(1) In order to improve the ability 
to evaluate the effectiveness of the Nation's renewable fuels mandate, 
the Administrator shall conduct and publish the results of a survey of 
renewable fuels demand in the motor vehicle fuels market in the United 
States monthly, and in a manner designed to protect the confidentiality 
of individual responses. In conducting the survey, the Administrator 
shall collect information both on a national and regional basis, 
including--
            ``(A) the quantity of renewable fuels produced;
            ``(B) the quantity of renewable fuels blended;
            ``(C) the quantity of renewable fuels imported;
            ``(D) the quantity of renewable fuels demanded;
            ``(E) market price data; and
            ``(F) such other analyses or evaluations as the 
        Administrator finds is necessary to achieve the purposes of 
        this section.
    ``(2) The Administrator shall also collect or estimate information 
both on a national and regional basis, pursuant to subparagraphs (A) 
through (F) of paragraph (1), for the five years prior to 
implementation of this subsection.
    ``(3) This subsection does not affect the authority of the 
Administrator to collect data under section 52 of the Federal Energy 
Administration Act of 1974 (15 U.S.C. 790a).''.

SEC. 9107. FUEL SYSTEM REQUIREMENTS HARMONIZATION STUDY.

    (a) Study.--
            (1) In general.--The Administrator of the Environmental 
        Protection Agency and the Secretary of Energy shall jointly 
        conduct a study of Federal, State, and local requirements 
        concerning motor vehicle fuels, including--
                    (A) requirements relating to reformulated gasoline, 
                volatility (measured in Reid vapor pressure), 
                oxygenated fuel, and diesel fuel; and
                    (B) other requirements that vary from State to 
                State, region to region, or locality to locality.
            (2) Required elements.--The study shall assess--
                    (A) the effect of the variety of requirements 
                described in paragraph (1) on the supply, quality, and 
                price of motor vehicle fuels available to consumers in 
                various States and localities;
                    (B) the effect of the requirements described in 
                paragraph (1) on achievement of--
                            (i) national, regional, and local air 
                        quality standards and goals; and
                            (ii) related environmental and public 
                        health protection standards and goals;
                    (C) the effect of Federal, State, and local motor 
                vehicle fuel regulations, including multiple motor 
                vehicle fuel requirements, on--
                            (i) domestic refineries;
                            (ii) the fuel distribution system; and
                            (iii) industry investment in new capacity;
                    (D) the effect of the requirements described in 
                paragraph (1) on emissions from vehicles, refineries, 
                and fuel handling facilities;
                    (E) the feasibility of developing national or 
                regional motor vehicle fuel slates for the 48 
                contiguous States that, while improving air quality at 
                the national, regional and local levels consistent with 
                the attainment of national ambient air quality 
                standards, could--
                            (i) enhance flexibility in the fuel 
                        distribution infrastructure and improve fuel 
                        fungibility;
                            (ii) reduce price volatility and costs to 
                        consumers and producers;
                            (iii) provide increased liquidity to the 
                        gasoline market; and
                            (iv) enhance fuel quality, consistency, and 
                        supply;
                    (F) the feasibility of providing incentives, to 
                promote cleaner burning motor vehicle fuel; and
                    (G) the extent to which improvements in air quality 
                and any increases or decreases in the price of motor 
                fuel can be projected to result from the Environmental 
                Protection Agency's Tier II requirements for 
                conventional gasoline and vehicle emission systems, the 
                reformulated gasoline program, the renewable content 
                requirements established by this subtitle, State 
                programs regarding gasoline volatility, and any other 
                requirements imposed by States or localities affecting 
                the composition of motor fuel.
    (b) Report.--
            (1) In general.--Not later than December 31, 2006, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall submit to Congress a report on the 
        results of the study conducted under subsection (a).
            (2) Recommendations.--
                    (A) In general.--The report shall contain 
                recommendations for legislative and administrative 
                actions that may be taken--
                            (i) to improve air quality;
                            (ii) to reduce costs to consumers and 
                        producers; and
                            (iii) to increase supply liquidity.
                    (B) Required considerations.--The recommendations 
                under subparagraph (A) shall take into account the need 
                to provide advance notice of required modifications to 
                refinery and fuel distribution systems in order to 
                ensure an adequate supply of motor vehicle fuel in all 
                States.
            (3) Consultation.--In developing the report, the 
        Administrator of the Environmental Protection Agency and the 
        Secretary of Energy shall consult with--
                    (A) the Governors of the States;
                    (B) automobile manufacturers;
                    (C) motor vehicle fuel producers and distributors; 
                and
                    (D) the public.

                        Subtitle B--MTBE Cleanup

SEC. 9201. FUNDING FOR MTBE CONTAMINATION.

    Notwithstanding any other provision of law, there is authorized to 
be appropriated to the Administrator of the United States Environmental 
Protection Agency from the Leaking Underground Storage Tank Trust Fund 
not more than $850,000,000 to be used for taking such action limited to 
site assessment (including exposure assessment), corrective action, 
inspection of underground storage tank systems, and groundwater 
monitoring as the Administrator deems necessary to protect human 
health, welfare, and the environment from underground storage tank 
releases of fuel containing fuel oxygenates.

                     TITLE X--AUTOMOBILE EFFICIENCY

SEC. 10001. AUTHORIZATION OF APPROPRIATIONS FOR IMPLEMENTATION AND 
              ENFORCEMENT OF FUEL ECONOMY STANDARDS.

    In addition to any other funds authorized by law, there are 
authorized to be appropriated to the National Highway Traffic Safety 
Administration to implement and enforce average fuel economy standards 
$5,000,000 for fiscal years 2004 through 2006.

SEC. 10002. STUDY OF FEASIBILITY AND EFFECTS OF REDUCING USE OF FUEL 
              FOR AUTOMOBILES.

    (a) In General.--Not later than 30 days after the date of the 
enactment of this Act, the Administrator of the National Highway 
Traffic Safety Administration shall study the feasibility and effects 
of reducing by model year 2012, by a significant percentage, the use of 
fuel for automobiles.
    (b) Subjects of Study.--The study under this section shall 
include--
            (1) examination of, and recommendation of alternatives to, 
        the policy under current Federal law of establishing average 
        fuel economy standards for automobiles and requiring each 
        automobile manufacturer to comply with average fuel economy 
        standards that apply to the automobiles it manufactures;
            (2) examination of how automobile manufacturers could 
        contribute toward achieving the reduction referred to in 
        subsection (a);
            (3) examination of the potential of fuel cell technology in 
        motor vehicles in order to determine the extent to which such 
        technology may contribute to achieving the reduction referred 
        to in subsection (a); and
            (4) examination of the effects of the reduction referred to 
        in subsection (a) on--
                    (A) gasoline supplies;
                    (B) the automobile industry, including sales of 
                automobiles manufactured in the United States;
                    (C) motor vehicle safety; and
                    (D) air quality.
    (c) Report.--The Administrator shall submit to the Congress a 
report on the findings, conclusion, and recommendations of the study 
under this section by not later than 1 year after the date of the 
enactment of this Act.

  TITLE XI--PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY

SEC. 11001. PREVENTING THE MISUSE OF NUCLEAR MATERIALS AND TECHNOLOGY.

    (a) Amendment.--Chapter 14 of the Atomic Energy Act of 1954 (42 
U.S.C. 2201 et seq.) is amended by adding at the end the following new 
section:
    ``Sec. 170D. Preventing the Misuse of Nuclear Materials and 
Technology.--
    ``a. In order to successfully promote the development of nuclear 
energy as a safe and reliable source of electrical energy, it is the 
policy of the United States to prevent any nuclear materials, 
technology, components, substances, technical information, or related 
goods or services from being misused or diverted from peaceful nuclear 
energy purposes.
    ``b. In order to further advance the policy set forth in subsection 
a., notwithstanding any other provision of law, no Federal agency shall 
issue any license, approval, or authorization for the export or 
reexport, or the transfer or retransfer, either directly or indirectly, 
to any country whose government has been identified by the Secretary of 
State as engaged in state sponsorship of terrorist activities 
(specifically including any country the government of which, as of 
September 11, 2001, had been determined by the Secretary of State under 
section 620A(a) of the Foreign Assistance Act of 1961, section 6(j)(1) 
of the Export Administration Act of 1979, or section 40(d) of the Arms 
Export Control Act to have repeatedly provided support for acts of 
international terrorism) of--
            ``(1) any special nuclear material or byproduct material;
            ``(2) any nuclear production or utilization facilities; or
            ``(3) any components, technologies, substances, technical 
        information, or related goods or services used (or which could 
        be used) in a nuclear production or utilization facility.
    ``c. Any license, approval, or authorization described in 
subsection b. made prior to the date of enactment of this section is 
hereby revoked.''.
    (b) Table of Contents Amendment.--The table of contents of such 
chapter 14 is amended by adding at the end the following item:

``Sec. 170D. Preventing the misuse of nuclear materials and 
                            technology.''.

                    TITLE XII--ADDITIONAL PROVISIONS

SEC. 12001. TRANSMISSION TECHNOLOGIES.

    The Federal Energy Regulatory Commission shall take affirmative 
steps in the exercise of its authorities under the Federal Power Act to 
encourage the deployment of transmission technologies that utilize real 
time monitoring and analytical software to increase and maximize the 
capacity and efficiency of transmission networks and to reduce line 
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

  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

  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

  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
```