IB 

Union Calendar No. 94

108TH CONGRESS 

1ST SESSION H. R. 238

[Report No. 108–128, Part I] 

To provide for Federal energy research, development, demonstration, and 

commercial application activities, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 8, 2003

Mr. BOEHLERT (for himself and Mr. HALL) introduced the following bill; 

which was referred to the Committee on Science, and in addition to the 

Committee on Resources, 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 

MAY 22, 2003

Reported from the Committee on Science with an amendment 

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

MAY 22, 2003

Referral to the Committee on Resources extended for a period ending not later 

than June 27, 2003

JUNE 27, 2003

Committee on Resources discharged; committed 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 January 8, 2003] 

A BILL

To provide for Federal energy research, development, dem-
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onstration, and commercial application activities, and for 

other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the ‘‘En5 ergy Research, Development, Demonstration, and Commer6 cial Application Act of 2003’’. 

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

8 this Act is as follows:

Sec. 1. Short title; table of contents. 

Sec. 2. Purposes. 

Sec. 3. Goals. 

Sec. 4. Definitions. 

TITLE I—RESEARCH AND DEVELOPMENT 

Subtitle A—Energy Efficiency 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 104. Energy efficiency. 

PART 2—LIGHTING SYSTEMS

Sec. 105. Next Generation Lighting Initiative. 

PART 3—BUILDINGS

Sec. 106. National Building Performance Initiative. 

Sec. 106A. Electric motor control technology. 

PART 4—VEHICLES

Sec. 107. Definitions. 

Sec. 108. Establishment of secondary electric vehicle battery use program. 

PART 5—ENERGY EFFICIENCY SCIENCE INITIATIVE

Sec. 110. Energy Efficiency Science Initiative. 

PART 6—ADVANCED ENERGY TECHNOLOGY TRANSFER CENTERS

Sec. 110A. Advanced energy technology transfer centers. 
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Subtitle B—Distributed Energy and Electric Energy Systems 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 111. Distributed energy and electric energy systems. 

Sec. 111A. Demonstration and field test. 

PART 2—DISTRIBUTED POWER

Sec. 112. Strategy. 

Sec. 113. High power density industry program. 

Sec. 114. Micro-cogeneration energy technology. 

PART 3—TRANSMISSION SYSTEMS

Sec. 115. Transmission infrastructure systems research, development, demonstration, and commercial application. 

PART 4—GENERAL PROVISIONS

Sec. 116. Definitions. 

Sec. 117. Voluntary consensus standards. 

Subtitle C—Renewable Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 121. Renewable energy. 

PART 2—BIOENERGY

Sec. 122. Bioenergy programs. 

PART 3—MISCELLANEOUS PROJECTS

Sec. 126. Miscellaneous projects. 

Sec. 127. Renewable energy in public buildings. 

Subtitle D—Nuclear Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 131. Nuclear energy. 

PART 2—NUCLEAR ENERGY RESEARCH PROGRAMS

Sec. 132. Nuclear energy research programs. 

PART 3—ADVANCED FUEL RECYCLING

Sec. 133. Advanced fuel recycling program. 

PART 4—UNIVERSITY PROGRAMS

Sec. 134. University nuclear science and engineering support. 

PART 5—GEOLOGICAL ISOLATION OF SPENT FUEL

Sec. 135. Geological isolation of spent fuel. 
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Subtitle E—Fossil Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 141. Fossil energy. 

PART 2—RESEARCH PROGRAMS

Sec. 142. Fossil energy research programs. 

Sec. 143. Research and development for coal mining technologies. 

PART 3—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND OTHER

PETROLEUM RESOURCES

Sec. 144. Program authority. 

Sec. 145. Ultra-deepwater program. 

Sec. 146. Unconventional natural gas and other petroleum resources program. 

Sec. 147. Additional requirements for awards. 

Sec. 148. Advisory committees. 

Sec. 149. Limits on participation. 

Sec. 150. Fund. 

Sec. 150A. Transfer of advanced oil and gas exploration and production technologies. 

Sec. 151. Sunset. 

Sec. 152. Definitions. 

Subtitle F—Science 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 161. Science. 

PART 2—FUSION ENERGY SCIENCES

Sec. 161A. ITER. 

Sec. 162. Plan for fusion experiment. 

Sec. 163. Plan for fusion energy sciences program. 

PART 3—SPALLATION NEUTRON SOURCE

Sec. 164. Definition. 

Sec. 165. Report. 

Sec. 166. Limitations. 

PART 4—MISCELLANEOUS

Sec. 167. Facility and infrastructure support for nonmilitary energy laboratories. 

Sec. 168. Research regarding precious metal catalysis. 

Sec. 169. Nanotechnology research and development. 

Sec. 170. Advanced scientific computing for energy missions. 

Sec. 170A. Nitrogen fixation. 

PART 5—GENOMES TO LIFE

Sec. 170B. Genomes to Life. 

Sec. 170C. Department of Energy Science and Technology Scholarship Program. 

Subtitle G—Energy and Environment 

Sec. 171. Authorization of appropriations. 
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Sec. 172. United States-Mexico energy technology cooperation. 

Sec. 173. Waste reduction and use of alternatives. 

Sec. 174. Coal gasification. 

Sec. 175. Petroleum coke gasification. 

Sec. 176. Other biopower and bioenergy. 

Sec. 177. Coal technology loan. 

Sec. 178. Fuel cell test center. 

Subtitle H—Hydrogen 

Sec. 181. Short title. 

Sec. 182. Matsunaga Act amendment. 

Sec. 183. Repeal of Hydrogen Future Act of 1996.

Subtitle I—Management 

Sec. 184. Availability of funds. 

Sec. 185. Cost sharing. 

Sec. 186. Merit review of proposals. 

Sec. 187. External technical review of departmental programs. 

Sec. 188. Improved coordination of technology transfer activities. 

Sec. 189. Small business advocacy and assistance. 

Sec. 190. Mobility of scientific and technical personnel. 

Sec. 191. National Academy of Sciences report. 

Sec. 192. Outreach. 

Sec. 193. Limits on use of funds. 

Sec. 194. Reprogramming. 

Sec. 195. Construction with other laws. 

Sec. 196. University collaboration. 

Sec. 197. Federal laboratory educational partners. 

Sec. 198. Interagency cooperation. 

TITLE II—DEPARTMENT OF ENERGY MANAGEMENT 

Sec. 201. Improved coordination and management of civilian science and technology programs. 

Sec. 202. Report on equal employment opportunity practices. 

Sec. 203. External regulation of Department of Energy. 

TITLE III—CLEAN SCHOOL BUSES 

Sec. 301. Establishment of pilot program. 

Sec. 302. Fuel cell bus development and demonstration program. 

Sec. 303. Diesel retrofit program. 

Sec. 304. Authorization of appropriations. 

TITLE IV—ALTERNATIVE FUELED AND ADVANCED VEHICLES 

Sec. 401. Definitions. 

Sec. 402. Pilot program. 

Sec. 403. Reports to Congress. 

Sec. 404. Fuel cell transit bus demonstration. 

Sec. 405. Authorization of appropriations. 

TITLE V—CLEAN COAL 

Sec. 501. Authorization of appropriations. 

Sec. 502. Project criteria. 
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Sec. 503. Report. 

Sec. 504. Clean coal centers of excellence.

1 SEC. 2. PURPOSES. 

2 The purposes of this Act are to—

3 (1) contribute to a national energy strategy 

4 through an energy research and development program 

5 that supports basic energy research and provides 

6 mechanisms to develop, demonstrate, and promote the 

7 commercial application of new energy technologies in 

8 partnership with industry; 

9 (2) protect and strengthen the Nation’s economy, 

10 standard of living, and national security by reducing 

11 dependence on imported energy; 

12 (3) meet future needs for energy services at the 

13 lowest total cost to the Nation, giving balanced and 

14 comprehensive consideration to technologies that im15 prove the efficiency of energy end uses and that en16 hance energy supply; 

17 (4) reduce the environmental impacts of energy 

18 production, distribution, transportation, and use; 

19 (5) help increase domestic production of energy, 

20 increase the availability of hydrocarbon reserves, and 

21 lower energy prices; and 

22 (6) stimulate economic growth and enhance the 

23 ability of United States companies to compete in fu24 ture markets for advanced energy technologies. 
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1 SEC. 3. GOALS. 

2 (a) IN GENERAL.—In order to achieve the purposes of 

3 this Act, the Secretary shall conduct a balanced set of pro4 grams of energy research, development, demonstration, and 

5 commercial application, guided by the following goals: 

6 (1) ENERGY EFFICIENCY.—

7 (A) BUILDINGS.—Develop, in partnership 

8 with industry, technologies, designs, and produc9 tion methods that will enable an average 25 per10 cent increase by 2010 in the energy efficiency of 

11 all new buildings, as compared to a new build12 ing in 1996. 

13 (B) INDUSTRY.—Develop, in partnership 

14 with industry, technologies, designs, and produc15 tion methods that will enable the energy inten16 sity of the major energy-consuming industries to 

17 improve by at least 25 percent by 2010 as com18 pared to 1991. 

19 (C) VEHICLES.—Develop, in partnership 

20 with industry, technologies that will enable—

21 (i) by 2010, mid-sized passenger auto22 mobiles with a fuel economy of 80 miles per 

23 gallon; 

24 (ii) by 2010, light trucks (classes 1 and 

25 2a) with a fuel economy of 60 miles per gal26 lon; 
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1 (iii) by 2010, medium trucks and buses 

2 (classes 2b through 6 and class 8 transit 

3 buses) with a fuel economy, in ton-miles per 

4 gallon for trucks and passenger miles per 

5 gallon for buses, that is 3 times that of year 

6 2000 equivalent vehicles; 

7 (iv) by 2010, heavy trucks (classes 7 

8 and 8) with a fuel economy, in ton-miles 

9 per gallon, that is 2 times that of year 2000 

10 equivalent vehicles; and 

11 (v) by 2020, meeting the goal described 

12 in section 103(a)(2) of the Spark M. Matsu13 naga Hydrogen Research, Development, and 

14 Demonstration Act of 1990. 

15 (2) DISTRIBUTED ENERGY AND ELECTRIC EN16 ERGY SYSTEMS.—

17 (A) DISTRIBUTED GENERATION.—Develop, 

18 in partnership with industry, technologies based 

19 on natural gas that achieve electricity generating 

20 efficiencies greater than 40 percent by 2015 for 

21 on-site, or distributed, generation technologies. 

22 (B) ELECTRIC ENERGY SYSTEMS AND STOR23 AGE.—Develop, in partnership with industry—

24 (i) technologies for generators and 

25 transmission, distribution, and storage sys-
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1 tems that combine high capacity with high 

2 efficiency (particularly for electric trans3 mission facilities in rural and remote 

4 areas); 

5 (ii) new transmission and distribution 

6 technologies, including flexible alternating 

7 current transmission systems, composite 

8 conductor materials, advanced protection 

9 devices, and controllers; 

10 (iii) technologies for interconnection of 

11 distributed energy resources with electric 

12 power systems; 

13 (iv) high-temperature superconducting 

14 materials for power delivery equipment such 

15 as transmission and distribution cables, 

16 transformers, and generators; and

17 (v) real-time transmission and dis18 tribution system control technologies that 

19 provide for continual exchange of informa20 tion between generation, transmission, dis21 tribution, and end-user facilities. 

22 (3) RENEWABLE ENERGY.—

23 (A) WIND POWER.—Develop, in partnership 

24 with industry, technologies and designs that 

25 will—
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1 (i) reduce the cost of wind power by 40 

2 percent by 2012 as compared to 2000; and 

3 (ii) expand utilization of class 3 and 4 

4 winds. 

5 (B) PHOTOVOLTAICS.—Develop, in partner6 ship with industry, total photovoltaic systems 

7 with installed costs of $5,000 per peak kilowatt 

8 by 2005 and $2000 per peak kilowatt by 2015. 

9 (C) SOLAR THERMAL SYSTEMS.—Develop, 

10 in partnership with industry, solar power tech11 nologies (including baseload solar power) that 

12 combine high-efficiency and high-temperature re13 ceivers with advanced thermal storage and power 

14 cycles to accommodate peak loads and reduce 

15 lifecycle costs. 

16 (D) GEOTHERMAL ENERGY.—Develop, in 

17 partnership with industry, technologies and 

18 processes based on advanced hydrothermal sys19 tems and advanced heat and power systems, in20 cluding geothermal or ground source heat pump 

21 technology, with a specific focus on—

22 (i) improving exploration and charac23 terization technology to increase the prob24 ability of drilling successful wells from 20 

25 percent to 40 percent by 2010; 
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1 (ii) reducing the cost of drilling by 

2 2008 to an average cost of $225 per foot; 

3 (iii) developing enhanced geothermal 

4 systems technology with the potential to

5 double the usable geothermal resource base, 

6 as compared to the date of enactment of this 

7 Act; and 

8 (iv) reducing the cost of installing the 

9 ground loop of ground-source heat pumps 

10 by 30 percent by 2007 compared to the cost 

11 in 2000. 

12 (E) BIOMASS-BASED POWER SYSTEMS.—De13 velop, in partnership with industry, integrated 

14 power generating systems, advanced conversion, 

15 and feedstock technologies capable of producing 

16 electric power that is cost-competitive with fossil17 fuel generated electricity by 2010, through co18 production of fuels, chemicals, and other prod19 ucts under subparagraph (F). 

20 (F) BIOFUELS.—Develop, in partnership 

21 with industry, new and emerging technologies 

22 and biotechnology processes capable of making—

23 (i) gaseous and liquid biofuels that are 

24 price-competitive, by 2010, with gasoline or 
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1 diesel in either internal combustion engines 

2 or fuel cells; and 

3 (ii) biofuels, biobased polymers, and 

4 chemicals, including those derived from 

5 lignocellulosic feedstock, with particular em6 phasis on developing biorefineries that use 

7 enzyme-based processing systems. 

8 (G) HYDROPOWER.—Develop, in partner9 ship with industry, a new generation of turbine 

10 technologies that will increase generating capac11 ity and be less damaging to fish and aquatic eco12 systems. 

13 (4) FOSSIL ENERGY.— 

14 (A) POWER GENERATION.—Develop, in 

15 partnership with industry, technologies, includ16 ing precombustion technologies, by 2015 with the 

17 capability of realizing—

18 (i) electricity generating efficiencies of 

19 75 percent (lower heating value) for natural 

20 gas; and 

21 (ii) widespread commercial applica22 tion of combined heat and power with ther23 mal efficiencies of more than 85 percent 

24 (higher heating value). 
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1 (B) OFFSHORE OIL AND GAS RESOURCES.—

2 Develop, in partnership with industry, tech3 nologies to—

4 (i) extract methane hydrates in coastal 

5 waters of the United States; and 

6 (ii) develop natural gas and oil re7 serves in the ultra-deepwater of the Central 

8 and Western Gulf of Mexico, with a focus on 

9 improving, while lowering costs and reduc10 ing environmental impacts, the safety and 

11 efficiency of—

12 (I) the recovery of ultra-deepwater 

13 resources; and 

14 (II) sub-sea production technology 

15 used for such recovery. 

16 (C) ONSHORE OIL AND GAS RESOURCES.—

17 Advance the science and technology available to 

18 domestic onshore petroleum producers, particu19 larly independent producers of oil or gas, 

20 through—

21 (i) advances in technology for explo22 ration and production of domestic petro23 leum resources, particularly those not acces24 sible with current technology; 
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1 (ii) improvement in the ability to ex2 tract hydrocarbons (including heavy oil) 

3 from known reservoirs and classes of res4 ervoirs; and 

5 (iii) development of technologies and 

6 practices that reduce the impact on the en7 vironment from petroleum exploration and 

8 production. 

9 (D) TRANSPORTATION FUELS.—Increase the 

10 availability of transportation fuels by focusing 

11 research on—

12 (i) reducing the cost of producing 

13 transportation fuels from coal and natural 

14 gas; and 

15 (ii) indirect liquefaction of coal and 

16 biomass. 

17 (5) NUCLEAR ENERGY.—

18 (A) EXISTING REACTORS.—Support re19 search to extend the lifetimes of existing United 

20 States nuclear power reactors, and increase their 

21 reliability while optimizing their current oper22 ations for greater efficiencies. 

23 (B) ADVANCED REACTORS.—Develop, in 

24 partnership with industry—
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1 (i) advanced, efficient, lower cost, and 

2 passively safe reactor designs; 

3 (ii) proliferation-resistant and high4 burn-up nuclear fuels; and 

5 (iii) technologies to minimize genera6 tion of radioactive materials and improve 

7 the management of nuclear waste. 

8 (C) NUCLEAR SCIENTISTS AND ENGI9 NEERS.—Attract new students and faculty to the 

10 nuclear sciences, nuclear engineering, and re11 lated fields (including health physics, nuclear 

12 medicine, nuclear chemistry, and 

13 radiochemistry). 

14 (6) HYDROGEN.—Carry out the Spark M. Mat15 sunaga Hydrogen Research, Development, and Dem16 onstration Act of 1990. 

17 (b) REVIEW AND ASSESSMENT OF GOALS.—

18 (1) EVALUATION AND MODIFICATION.—Based on 

19 amounts appropriated and developments in science 

20 and technology, the Secretary shall evaluate the goals 

21 set forth in subsection (a) at least once every 5 years, 

22 and shall report to the Congress any proposed modi23 fications to the goals. 
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1 (2) CONSULTATION.—In evaluating and pro2 posing modifications to the goals as provided in para3 graph (1), the Secretary shall solicit public input. 

4 (3) PUBLIC COMMENT.—(A) After consultation 

5 under paragraph (2), the Secretary shall publish in 

6 the Federal Register a set of draft modifications to the 

7 goals for public comment. 

8 (B) Not later than 60 days after the date of pub9 lication of draft modifications under subparagraph 

10 (A), and after consideration of any public comments 

11 received, the Secretary shall publish the final modi12 fications, including a summary of the public com13 ments received, in the Federal Register. 

14 (4) EFFECTIVE DATE.—No modification to goals 

15 under this section shall take effect before the date 

16 which is 5 years after the date of enactment of this 

17 Act. 

18 (c) EFFECT OF GOALS.—(1) Nothing in paragraphs 

19 (1) through (6) of subsection (a), or any subsequent modi20 fication to the goals therein pursuant to subsection (b), 

21 shall—

22 (A) create any new—

23 (i) authority for any Federal agency; or 

24 (ii) requirement for any other person; 
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1 (B) be used by a Federal agency to support the 

2 establishment of regulatory standards or regulatory 

3 requirements; or 

4 (C) alter the authority of the Secretary to make 

5 grants or other awards. 

6 (2) Nothing in this subsection shall be construed to 

7 limit the authority of the Secretary to impose conditions 

8 on grants or other awards based on the goals in subsection 

9 (a) or any subsequent modification thereto.

10 SEC. 4. DEFINITIONS. 

11 For purposes of this Act: 

12 (1) DEPARTMENT.—The term ‘‘Department’’ 

13 means the Department of Energy. 

14 (2) DEPARTMENTAL MISSION.—The term ‘‘de15 partmental mission’’ means any of the functions vest16 ed in the Secretary of Energy by the Department of 

17 Energy Organization Act (42 U.S.C. 7101 et seq.) or 

18 other law. 

19 (3) INDEPENDENT PRODUCER OF OIL OR GAS.—

20 (A) IN GENERAL.—The term ‘‘independent 

21 producer of oil or gas’’ means any person who 

22 produces oil or gas other than a person to whom 

23 subsection (c) of section 613A of the Internal 

24 Revenue Code of 1986 does not apply by reason 

25 of paragraph (2) (relating to certain retailers) or 
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1 paragraph (4) (relating to certain refiners) of 

2 section 613A(d) of such Code. 

3 (B) RULES FOR APPLYING PARAGRAPHS (2)

4 AND (4)OF SECTION 613A(d).—For purposes of 

5 subparagraph (A), paragraphs (2) and (4) of 

6 section 613A(d) of the Internal Revenue Code of 

7 1986 shall be applied by substituting ‘‘calendar 

8 year’’ for ‘‘taxable year’’ each place it appears in 

9 such paragraphs. 

10 (4) INSTITUTION OF HIGHER EDUCATION.—The 

11 term ‘‘institution of higher education’’ has the mean12 ing given that term in section 101(a) of the Higher 

13 Education Act of 1965 (20 U.S.C. 1001(a)). 

14 (5) JOINT VENTURE.—The term ‘‘joint venture’’ 

15 has the meaning given that term under section 2 of 

16 the National Cooperative Research and Production 

17 Act of 1993 (15 U.S.C. 4301). 

18 (6) NATIONAL LABORATORY.—The term ‘‘Na19 tional Laboratory’’ means any of the following lab20 oratories owned by the Department: 

21 (A) Ames National Laboratory. 

22 (B) Argonne National Laboratory. 

23 (C) Brookhaven National Laboratory. 

24 (D) Fermi National Laboratory. 
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1 (E) Idaho National Engineering and Envi2 ronmental Laboratory. 

3 (F) Lawrence Berkeley National Labora4 tory. 

5 (G) Lawrence Livermore National Labora6 tory. 

7 (H) Los Alamos National Laboratory. 

8 (I) National Energy Technology Labora9 tory. 

10 (J) National Renewable Energy Laboratory. 

11 (K) Oak Ridge National Laboratory. 

12 (L) Pacific Northwest National Laboratory. 

13 (M) Princeton Plasma Physics Laboratory. 

14 (N) Sandia National Laboratories.

15 (O) Thomas Jefferson National Accelerator 

16 Facility. 

17 (7) NONMILITARY ENERGY LABORATORY.—The 

18 term ‘‘nonmilitary energy laboratory’’ means any of 

19 the following laboratories of the Department: 

20 (A) Ames National Laboratory. 

21 (B) Argonne National Laboratory. 

22 (C) Brookhaven National Laboratory. 

23 (D) Fermi National Laboratory. 

24 (E) Lawrence Berkeley National Labora25 tory. 
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1 (F) Oak Ridge National Laboratory. 

2 (G) Pacific Northwest National Laboratory. 

3 (H) Princeton Plasma Physics Laboratory. 

4 (I) Stanford Linear Accelerator Center. 

5 (J) Thomas Jefferson National Accelerator 

6 Facility. 

7 (8) SECRETARY.—The term ‘‘Secretary’’ means 

8 the Secretary of Energy. 

9 (9) SINGLE-PURPOSE RESEARCH FACILITY.—The 

10 term ‘‘single-purpose research facility’’ means any of 

11 the following primarily single-purpose entities owned 

12 by the Department: 

13 (A) East Tennessee Technology Park. 

14 (B) Fernald Environmental Management 

15 Project. 

16 (C) Kansas City Plant. 

17 (D) Nevada Test Site. 

18 (E) New Brunswick Laboratory. 

19 (F) Pantex Weapons Facility. 

20 (G) Savannah River Technology Center. 

21 (H) Stanford Linear Accelerator Center. 

22 (I) Y–12 facility at Oak Ridge National 

23 Laboratory. 

24 (J) Waste Isolation Pilot Plant. 
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1 (K) Any other similar organization of the 

2 Department designated by the Secretary that en3 gages in technology transfer, partnering, or li4 censing activities. 

5 TITLE I—RESEARCH AND 

6 DEVELOPMENT 

7 Subtitle A—Energy Efficiency 

8 PART 1—AUTHORIZATION OF APPROPRIATIONS 

9 SEC. 104. ENERGY EFFICIENCY. 

10 (a) IN GENERAL.—The following sums are authorized 

11 to be appropriated to the Secretary for energy efficiency and 

12 conservation research, development, demonstration, and 

13 commercial application activities, including activities au14 thorized under this subtitle: 

15 (1) For fiscal year 2004, $616,000,000. 

16 (2) For fiscal year 2005, $695,000,000. 

17 (3) For fiscal year 2006, $772,000,000. 

18 (4) For fiscal year 2007, $865,000,000. 

19 (b) ALLOCATIONS.—From amounts authorized under 

20 subsection (a), the following sums are authorized: 

21 (1) LIGHTING SYSTEMS.—For activities under 

22 section 105, $50,000,000 for each of fiscal years 2004 

23 through 2007. 
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1 (2) ELECTRIC MOTOR CONTROL TECHNOLOGY.—

2 For activities under section 106A, $2,000,000 for each 

3 of fiscal years 2004 through 2007. 

4 (3) SECONDARY ELECTRIC VEHICLE BATTERY

5 USE PROGRAM.—For activities under section 108—

6 (A) for fiscal year 2004, $4,000,000; 

7 (B) for fiscal year 2005, $7,000,000; 

8 (C) for fiscal year 2006, $7,000,000; and 

9 (D) for fiscal year 2007, $7,000,000. 

10 (4) ENERGY EFFICIENCY SCIENCE INITIATIVE.—

11 For activities under section 110—

12 (A) for fiscal year 2004, $20,000,000; 

13 (B) for fiscal year 2005, $25,000,000;

14 (C) for fiscal year 2006, $30,000,000; and 

15 (D) for fiscal year 2007, $35,000,000. 

16 (c) EXTENDED AUTHORIZATION.—There are author17 ized to be appropriated to the Secretary for activities under 

18 section 105, $50,000,000 for each of fiscal years 2008 

19 through 2012. 

20 (d) LIMITS ON USE OF FUNDS.—None of the funds au21 thorized to be appropriated under this section may be used 

22 for—

23 (1) the promulgation and implementation of en24 ergy efficiency regulations; 
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1 (2) the Weatherization Assistance Program 

2 under part A of title IV of the Energy Conservation 

3 and Production Act; 

4 (3) the State Energy Program under part D of 

5 title III of the Energy Policy and Conservation Act; 

6 or 

7 (4) the Federal Energy Management Program 

8 under part 3 of title V of the National Energy Con9 servation Policy Act. 

10 PART 2—LIGHTING SYSTEMS

11 SEC. 105. NEXT GENERATION LIGHTING INITIATIVE. 

12 (a) IN GENERAL.—The Secretary shall carry out a 

13 Next Generation Lighting Initiative in accordance with this 

14 section to support research, development, demonstration, 

15 and commercial application activities related to advanced 

16 solid-state lighting technologies based on white light emit17 ting diodes. 

18 (b) OBJECTIVES.—The objectives of the initiative shall 

19 be—

20 (1) to develop, by 2012, advanced solid-state 

21 lighting technologies based on white light emitting di22 odes that, compared to incandescent and fluorescent 

23 lighting technologies, are—

24 (A) longer lasting; 

25 (B) more energy-efficient; and 
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1 (C) cost-competitive; 

2 (2) to develop an inorganic white light emitting 

3 diode that has an efficiency of 160 lumens per watt 

4 and a 10-year lifetime; and 

5 (3) to develop an organic white light emitting 

6 diode with an efficiency of 100 lumens per watt with 

7 a 5-year lifetime that—

8 (A) illuminates over a full color spectrum; 

9 (B) covers large areas over flexible surfaces; 

10 and 

11 (C) does not contain harmful pollutants, 

12 such as mercury, typical of fluorescent lamps. 

13 (c) FUNDAMENTAL RESEARCH.—

14 (1) CONSORTIUM.—The Secretary shall carry out 

15 the fundamental research activities of the Next Gen16 eration Lighting Initiative through a private consor17 tium (which may include private firms, trade asso18 ciations and institutions of higher education), which 

19 the Secretary shall select through a competitive proc20 ess. Each proposed consortium shall submit to the 

21 Secretary such information as the Secretary may re22 quire, including a program plan agreed to by all par23 ticipants of the consortium. 

24 (2) JOINT VENTURE.—The consortium shall be 

25 structured as a joint venture among the participants 
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1 of the consortium. The Secretary shall serve on the 

2 governing council of the consortium. 

3 (3) ELIGIBILITY.—To be eligible to be selected as 

4 the consortium under paragraph (1), an applicant 

5 must be broadly representative of United States solid6 state lighting research, development, and manufac7 turing expertise as a whole. 

8 (4) GRANTS.—(A) The Secretary shall award 

9 grants for fundamental research to the consortium, 

10 which the consortium may disburse to researchers, in11 cluding those who are not participants of the consor12 tium. 

13 (B) To receive a grant, the consortium must pro14 vide a description to the Secretary of the proposed re15 search and list the parties that will receive funding. 

16 (C) Grants shall be matched by the consortium 

17 pursuant to section 185. 

18 (5) NATIONAL LABORATORIES.—National Lab19 oratories may participate in the research described in 

20 this section, and may receive funds from the consor21 tium. 

22 (6) INTELLECTUAL PROPERTY.—Participants in 

23 the consortium and the Federal Government shall 

24 have royalty-free nonexclusive rights to use intellec-
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1 tual property derived from research funded pursuant 

2 to this subsection. 

3 (d) DEVELOPMENT, DEMONSTRATION, AND COMMER4 CIAL APPLICATION.—The Secretary shall carry out the de5 velopment, demonstration, and commercial application ac6 tivities of the Next Generation Lighting Initiative through 

7 awards to private firms, trade associations, and institu8 tions of higher education. In selecting awardees, the Sec9 retary may give preference to members of the consortium 

10 selected pursuant to subsection (c). 

11 (e) PLANS AND ASSESSMENTS.—(1) The consortium 

12 shall formulate an annual operating plan which shall in13 clude research priorities, technical milestones, and plans for 

14 technology transfer, and which shall be subject to approval 

15 by the Secretary. 

16 (2) The Secretary shall enter into an arrangement 

17 with the National Academy of Sciences to conduct periodic 

18 reviews of the Next Generation Lighting Initiative. The 

19 Academy shall review the research priorities, technical mile20 stones, and plans for technology transfer established under 

21 paragraph (1) and evaluate the progress toward achieving 

22 them. The Secretary shall consider the results of such re23 views in evaluating the plans submitted under paragraph 

24 (1). 
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1 (f) AUDIT.—The Secretary shall retain an inde2 pendent, commercial auditor to perform an audit of the 

3 consortium to determine the extent to which the funds au4 thorized by this section have been expended in a manner 

5 consistent with the purposes of this section. The auditor 

6 shall transmit a report annually to the Secretary, who shall 

7 transmit the report to the Congress, along with a plan to 

8 remedy any deficiencies cited in the report. 

9 (g) SUNSET.—The Next Generation Lighting Initia10 tive shall terminate no later than September 30, 2013. 

11 (h) DEFINITIONS.—As used in this section: 

12 (1) ADVANCED SOLID-STATE LIGHTING.—The 

13 term ‘‘advanced solid-state lighting’’ means a 

14 semiconducting device package and delivery system

15 that produces white light using externally applied 

16 voltage. 

17 (2) FUNDAMENTAL RESEARCH.—The term ‘‘fun18 damental research’’ includes basic research on both 

19 solid-state materials and manufacturing processes. 

20 (3) INORGANIC WHITE LIGHT EMITTING DIODE.—

21 The term ‘‘inorganic white light emitting diode’’ 

22 means an inorganic semiconducting package that pro23 duces white light using externally applied voltage. 

24 (4) ORGANIC WHITE LIGHT EMITTING DIODE.—

25 The term ‘‘organic white light emitting diode’’ means 
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1 an organic semiconducting compound that produces 

2 white light using externally applied voltage. 

3 PART 3—BUILDINGS

4 SEC. 106. NATIONAL BUILDING PERFORMANCE INITIATIVE. 

5 (a) INTERAGENCY GROUP.—Not later than 3 months 

6 after the date of enactment of this Act, the Director of the 

7 Office of Science and Technology Policy shall establish an 

8 interagency group to develop, in coordination with the ad9 visory committee established under subsection (e), a Na10 tional Building Performance Initiative (in this section re11 ferred to as the ‘‘Initiative’’). The interagency group shall 

12 be cochaired by appropriate officials of the Department and 

13 the Department of Commerce, who shall jointly arrange for 

14 the provision of necessary administrative support to the 

15 group. 

16 (b) INTEGRATION OF EFFORTS.—The Initiative, work17 ing with the National Institute of Building Sciences, shall 

18 integrate Federal, State, and voluntary private sector ef19 forts to reduce the costs of construction, operation, mainte20 nance, and renovation of commercial, industrial, institu21 tional, and residential buildings. 

22 (c) PLAN.—Not later than 1 year after the date of en23 actment of this Act, the interagency group shall submit to 

24 Congress a plan for carrying out the appropriate Federal 
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1 role in the Initiative. The plan shall be based on whole 

2 building principles and shall include—

3 (1) research, development, demonstration, and 

4 commercial application of systems and materials for 

5 new construction and retrofit relating to the building 

6 envelope and building system components; and 

7 (2) the collection, analysis, and dissemination of 

8 research results and other pertinent information on 

9 enhancing building performance to industry, govern10 ment entities, and the public. 

11 (d) DEPARTMENT OF ENERGY ROLE.—Within the Fed12 eral portion of the Initiative, the Department shall be the 

13 lead agency for all aspects of building performance related 

14 to use and conservation of energy. 

15 (e) ADVISORY COMMITTEE.—

16 (1) ESTABLISHMENT.—The Director of the Office 

17 of Science and Technology Policy shall establish an 

18 advisory committee to—

19 (A) analyze and provide recommendations 

20 on potential private sector roles and participa21 tion in the Initiative; and 

22 (B) review and provide recommendations on 

23 the plan described in subsection (c). 

24 (2) MEMBERSHIP.—Membership of the advisory 

25 committee shall include representatives with a broad 
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1 range of appropriate expertise, including expertise 

2 in—

3 (A) building research and technology; 

4 (B) architecture, engineering, and building 

5 materials and systems; and 

6 (C) the residential, commercial, and indus7 trial sectors of the construction industry. 

8 (f) CONSTRUCTION.—Nothing in this section provides 

9 any Federal agency with new authority to regulate building 

10 performance. 

11 SEC. 106A. ELECTRIC MOTOR CONTROL TECHNOLOGY. 

12 The Secretary shall conduct a research, development, 

13 demonstration, and commercial application program on 

14 advanced control devices to improve the energy efficiency 

15 of electric motors used in heating, ventilation, air condi16 tioning, and comparable systems. 

17 PART 4—VEHICLES 

18 SEC. 107. DEFINITIONS. 

19 For purposes of this part, the term—

20 (1) ‘‘battery’’ means an energy storage device 

21 that previously has been used to provide motive power 

22 in a vehicle powered in whole or in part by elec23 tricity; and 
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1 (2) ‘‘associated equipment’’ means equipment lo2 cated where the batteries will be used that is necessary 

3 to enable the use of the energy stored in the batteries. 

4 SEC. 108. ESTABLISHMENT OF SECONDARY ELECTRIC VEHI5 CLE BATTERY USE PROGRAM. 

6 (a) PROGRAM.—The Secretary shall establish and con7 duct a research, development, demonstration, and commer8 cial application program for the secondary use of batteries. 

9 Such program shall be—

10 (1) designed to demonstrate the use of batteries 

11 in secondary application, including utility and com12 mercial power storage and power quality; 

13 (2) structured to evaluate the performance, in14 cluding useful service life and costs, of such batteries 

15 in field operations, and evaluate the necessary sup16 porting infrastructure, including reuse and disposal 

17 of batteries; and 

18 (3) coordinated with ongoing secondary battery 

19 use programs at the National Laboratories and in in20 dustry. 

21 (b) SOLICITATION.—(1) Not later than 6 months after 

22 the date of the enactment of this Act, the Secretary shall 

23 solicit proposals to demonstrate the secondary use of bat24 teries and associated equipment and supporting infrastruc25 ture in geographic locations throughout the United States. 
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1 The Secretary may make additional solicitations for pro2 posals if the Secretary determines that such solicitations are 

3 necessary to carry out this section. 

4 (2)(A) Proposals submitted in response to a solicita5 tion under this section shall include—

6 (i) a description of the project, including the bat7 teries to be used in the project, the proposed locations 

8 and applications for the batteries, the number of bat9 teries to be demonstrated, and the type, characteris10 tics, and estimated life-cycle costs of the batteries com11 pared to other energy storage devices currently used; 

12 (ii) the contribution, if any, of State or local 

13 governments and other persons to the demonstration 

14 project;

15 (iii) the type of associated equipment and sup16 porting infrastructure to be demonstrated; and 

17 (iv) any other information the Secretary con18 siders appropriate. 

19 (B) If the proposal includes a lease arrangement, the 

20 proposal shall indicate the terms of such lease arrangement 

21 for the batteries and associated equipment. 

22 (c) SELECTION OF PROPOSALS.—(1)(A) The Secretary 

23 shall, not later than 3 months after the closing date estab24 lished by the Secretary for receipt of proposals under sub-
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1 section (b), select at least 5 proposals to receive financial 

2 assistance under this section. 

3 (B) No one project selected under this section shall re4 ceive more than 25 percent of the funds authorized under 

5 this section. No more than 3 projects selected under this sec6 tion shall demonstrate the same battery type. 

7 (2) In selecting a proposal under this section, the Sec8 retary shall consider—

9 (A) the ability of the proposer to acquire the bat10 teries and associated equipment and to successfully 

11 manage and conduct the demonstration project, in12 cluding satisfying the reporting requirements set forth 

13 in paragraph (3)(B); 

14 (B) the geographic and climatic diversity of the 

15 projects selected; 

16 (C) the long-term technical and competitive via17 bility of the batteries to be used in the project and of 

18 the original manufacturer of such batteries; 

19 (D) the suitability of the batteries for their in20 tended uses; 

21 (E) the technical performance of the batteries, 

22 including the expected additional useful life and the 

23 batteries’ ability to retain energy; 
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1 (F) the environmental effects of the use of and 

2 disposal of the batteries proposed to be used in the 

3 project selected; 

4 (G) the extent of involvement of State or local 

5 government and other persons in the demonstration 

6 project and whether such involvement will—

7 (i) permit a reduction of the Federal cost 

8 share per project; or 

9 (ii) otherwise be used to allow the Federal 

10 contribution to be provided to demonstrate a 

11 greater number of batteries; and 

12 (H) such other criteria as the Secretary considers 

13 appropriate. 

14 (3) CONDITIONS.—The Secretary shall require that—

15 (A) as a part of a demonstration project, the 

16 users of the batteries provide to the proposer informa17 tion regarding the operation, maintenance, perform18 ance, and use of the batteries, and the proposer pro19 vide such information to the battery manufacturer, 

20 for 3 years after the beginning of the demonstration 

21 project;

22 (B) the proposer provide to the Secretary such 

23 information regarding the operation, maintenance, 

24 performance, and use of the batteries as the Secretary 

25 may request; 
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1 (C) the proposer provide to the Secretary such 

2 information regarding the disposal of the batteries as 

3 the Secretary may require to ensure that the proposer 

4 disposes of the batteries in accordance with applicable 

5 law; and 

6 (D) the proposer provide at least 50 percent of 

7 the costs associated with the proposal. 

8 PART 5—ENERGY EFFICIENCY SCIENCE 

9 INITIATIVE 

10 SEC. 110. ENERGY EFFICIENCY SCIENCE INITIATIVE. 

11 (a) ESTABLISHMENT.—The Secretary shall establish 

12 an Energy Efficiency Science Initiative to be managed by 

13 the Assistant Secretary in the Department with responsi14 bility for energy conservation under section 203(a)(9) of the 

15 Department of Energy Organization Act (42 U.S.C. 

16 7133(a)(9)), in consultation with the Director of the Office 

17 of Science, for grants to be competitively awarded and sub18 ject to peer review for research relating to energy efficiency. 

19 (b) REPORT.—The Secretary shall submit to the Con20 gress, along with the President’s annual budget request 

21 under section 1105(a) of title 31, United States Code, a re22 port on the activities of the Energy Efficiency Science Ini23 tiative, including a description of the process used to award 

24 the funds and an explanation of how the research relates 

25 to energy efficiency. 
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1 PART 6—ADVANCED ENERGY TECHNOLOGY 

2 TRANSFER CENTERS 

3 SEC. 110A. ADVANCED ENERGY TECHNOLOGY TRANSFER 

4 CENTERS. 

5 (a) GRANTS.—Not later than 18 months after the date 

6 of the enactment of this Act, the Secretary shall make grants 

7 to nonprofit institutions, State and local governments, or 

8 universities (or consortia thereof), to establish a nationwide 

9 network of at least 10 Advanced Energy Technology Trans10 fer Centers, to be located in areas the Secretary determines 

11 have the greatest need of the services of such Centers. 

12 (b) ACTIVITIES.—(1) Each Center shall operate a pro13 gram to encourage demonstration and commercial applica14 tion of advanced energy methods and technologies through 

15 education and outreach to building and industrial profes16 sionals, and to other individuals and organizations with 

17 an interest in efficient energy use. 

18 (2) Each Center shall establish an advisory panel to 

19 advise the Center on how best to accomplish the activities 

20 under paragraph (1). 

21 (c) APPLICATION.—A person seeking a grant under 

22 this section shall submit to the Secretary an application 

23 in such form and containing such information as the Sec24 retary may require. The Secretary may award a grant 

25 under this section to an entity already in existence if the 

26 entity is otherwise eligible under this section. 
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1 (d) SELECTION CRITERIA.—The Secretary shall award 

2 grants under this section on the basis of the following cri3 teria, at a minimum: 

4 (1) The ability of the applicant to carry out the 

5 activities in subsection (b). 

6 (2) The extent to which the applicant will co7 ordinate the activities of the Center with other enti8 ties, such as State and local governments, utilities, 

9 and educational and research institutions. 

10 (e) MATCHING FUNDS.—The Secretary shall require a 

11 non-Federal matching requirement of at least 50 percent 

12 of the costs of establishing and operating each Center. 

13 (f) ADVISORY COMMITTEE.—The Secretary shall estab14 lish an advisory committee to advise the Secretary on the

15 establishment of Centers under this section. The advisory 

16 committee shall be composed of individuals with expertise 

17 in the area of advanced energy methods and technologies, 

18 including at least 1 representative from—

19 (1) State or local energy offices; 

20 (2) energy professionals; 

21 (3) trade or professional associations; 

22 (4) architects, engineers, or construction profes23 sionals; 

24 (5) manufacturers; 

25 (6) the research community; and 
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1 (7) nonprofit energy or environmental organiza2 tions. 

3 (g) DEFINITIONS.—For purposes of this section—

4 (1) the term ‘‘advanced energy methods and tech5 nologies’’ means all methods and technologies that 

6 promote energy efficiency and conservation, including 

7 distributed generation technologies, and life-cycle 

8 analysis of energy use; 

9 (2) the term ‘‘Center’’ means an Advanced En10 ergy Technology Transfer Center established pursuant 

11 to this section; and 

12 (3) the term ‘‘distributed generation’’ means an 

13 electric power generation facility that is designed to 

14 serve retail electric consumers at or near the facility 

15 site. 

16 Subtitle B—Distributed Energy and 

17 Electric Energy Systems 

18 PART 1—AUTHORIZATION OF APPROPRIATIONS 

19 SEC. 111. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 

20 SYSTEMS. 

21 (a) IN GENERAL.—The following sums are authorized 

22 to be appropriated to the Secretary for distributed energy 

23 and electric energy systems activities, including activities 

24 authorized under this subtitle: 

25 (1) For fiscal year 2004, $190,000,000. 
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1 (2) For fiscal year 2005, $200,000,000. 

2 (3) For fiscal year 2006, $220,000,000. 

3 (4) For fiscal year 2007, $240,000,000. 

4 (b) MICRO-COGENERATION ENERGY TECHNOLOGY.—

5 From amounts authorized under subsection (a), the fol6 lowing sums shall be available for activities under section 

7 114: 

8 (1) For fiscal year 2004, $5,000,000. 

9 (2) For fiscal year 2005, $5,500,000. 

10 (3) For fiscal year 2006, $6,000,000. 

11 (4) For fiscal year 2007, $6,500,000. 

12 SEC. 111A. DEMONSTRATION AND FIELD TEST. 

13 The Secretary shall conduct a demonstration and field 

14 test of distributed generation systems. Such test shall be con15 ducted in both geographically concentrated and dispersed 

16 regions and shall define the full range of communications 

17 and control system needs in distributed generation systems. 

18 This test should be used to identify future research priorities 

19 and the scale-up challenges necessary to meet the Depart20 ment’s goals for distributed energy over the next 10 years. 

21 PART 2—DISTRIBUTED POWER

22 SEC. 112. STRATEGY. 

23 (a) REQUIREMENT.—Not later than 1 year after the 

24 date of enactment of this Act, the Secretary shall develop 

25 and transmit to the Congress a strategy for a comprehensive 
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1 research, development, demonstration, and commercial ap2 plication program to develop hybrid distributed power sys3 tems that combine—

4 (1) one or more renewable electric power genera5 tion technologies of 10 megawatts or less located near 

6 the site of electric energy use; and 

7 (2) nonintermittent electric power generation 

8 technologies suitable for use in a distributed power 

9 system. 

10 (b) CONTENTS.—The strategy shall—

11 (1) identify the needs best met with such hybrid 

12 distributed power systems and the technological bar13 riers to the use of such systems; 

14 (2) provide for the development of methods to de15 sign, test, integrate into systems, and operate such hy16 brid distributed power systems; 

17 (3) include, as appropriate, research, develop18 ment, demonstration, and commercial application on 

19 related technologies needed for the adoption of such 

20 hybrid distributed power systems, including energy 

21 storage devices and environmental control tech22 nologies; 

23 (4) include research, development, demonstra24 tion, and commercial application of interconnection 

25 technologies for communications and controls of dis-
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1 tributed generation architectures, particularly tech2 nologies promoting real-time response to power mar3 ket information and physical conditions on the elec4 trical grid; and 

5 (5) describe how activities under the strategy 

6 will be integrated with other research, development, 

7 demonstration, and commercial application activities 

8 supported by the Department of Energy related to 

9 electric power technologies. 

10 SEC. 113. HIGH POWER DENSITY INDUSTRY PROGRAM. 

11 The Secretary shall establish a comprehensive research, 

12 development, demonstration, and commercial application 

13 program to improve energy efficiency of high power density 

14 facilities, including data centers, server farms, and tele15 communications facilities. Such program shall consider 

16 technologies that provide significant improvement in ther17 mal controls, metering, load management, peak load reduc18 tion, or the efficient cooling of electronics. 

19 SEC. 114. MICRO-COGENERATION ENERGY TECHNOLOGY. 

20 The Secretary shall make competitive, merit-based 

21 grants to consortia for the development of micro-cogenera22 tion energy technology. The consortia shall explore the use 

23 of small-scale combined heat and power in residential heat24 ing appliances. 
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1 PART 3—TRANSMISSION SYSTEMS

2 SEC. 115. TRANSMISSION INFRASTRUCTURE SYSTEMS RE3 SEARCH, DEVELOPMENT, DEMONSTRATION, 

4 AND COMMERCIAL APPLICATION. 

5 (a) PROGRAM AUTHORIZED.—The Secretary shall de6 velop and implement a comprehensive research, develop7 ment, demonstration, and commercial application program 

8 to promote improved reliability and efficiency of electrical 

9 transmission systems. Such program may include—

10 (1) advanced energy technologies, materials, and 

11 systems;

12 (2) advanced grid reliability and efficiency tech13 nology development; 

14 (3) technologies contributing to significant load 

15 reductions; 

16 (4) advanced metering, load management, and 

17 control technologies; 

18 (5) technologies to enhance existing grid compo19 nents; 

20 (6) the development and use of high-temperature 

21 superconductors to—

22 (A) enhance the reliability, operational 

23 flexibility, or power-carrying capability of elec24 tric transmission or distribution systems; or 
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1 (B) increase the efficiency of electric energy 

2 generation, transmission, distribution, or storage 

3 systems; 

4 (7) integration of power systems, including sys5 tems to deliver high-quality electric power, electric 

6 power reliability, and combined heat and power; 

7 (8) any other infrastructure technologies, as ap8 propriate; and 

9 (9) technology transfer and education. 

10 (b) PROGRAM PLAN.—Not later than 1 year after the 

11 date of the enactment of this Act, the Secretary, in consulta12 tion with other appropriate Federal agencies, shall prepare 

13 and transmit to Congress a 5-year program plan to guide 

14 activities under this section. In preparing the program 

15 plan, the Secretary shall consult with utilities, energy serv16 ices providers, manufacturers, institutions of higher edu17 cation, other appropriate State and local agencies, environ18 mental organizations, professional and technical societies, 

19 and any other persons the Secretary considers appropriate. 

20 (c) REPORT.—Not later than 2 years after the trans21 mittal of the plan under subsection (b), the Secretary shall 

22 transmit a report to Congress describing the progress made 

23 under this section and identifying any additional resources 

24 needed to continue the development and commercial appli25 cation of transmission infrastructure technologies. 
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1 PART 4—GENERAL PROVISIONS 

2 SEC. 116. DEFINITIONS. 

3 For purposes of this subtitle—

4 (1) the term ‘‘hybrid distributed power system’’ 

5 means a system using 2 or more distributed power 

6 sources, operated together with associated supporting 

7 equipment, including storage equipment, and software 

8 necessary to provide electric power onsite and to an 

9 electric distribution system; and 

10 (2) the term ‘‘distributed power source’’ means 

11 an independent electric energy source of usually 10 

12 megawatts or less located close to a residential, com13 mercial, or industrial load center, including—

14 (A) reciprocating engines; 

15 (B) turbines; 

16 (C) microturbines; 

17 (D) fuel cells; 

18 (E) solar electric systems; 

19 (F) wind energy systems; 

20 (G) biopower systems; 

21 (H) geothermal power systems; or 

22 (I) combined heat and power systems. 

23 SEC. 117. VOLUNTARY CONSENSUS STANDARDS. 

24 In a manner consistent with the National Technology 

25 Transfer Advancement Act, the Secretary, in consultation 

26 with the National Institute of Standards and Technology, 
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1 shall work with the Institute of Electrical and Electronic 

2 Engineers and other standards development organizations 

3 to take all appropriate steps toward the development, pro4 mulgation, and implementation of voluntary consensus 

5 standards for distributed energy systems for use in manu6 facturing and using equipment and systems for connection 

7 with electric distribution systems, for obtaining electricity 

8 from, or providing electricity to, such systems. 

9 Subtitle C—Renewable Energy 

10 PART 1—AUTHORIZATION OF APPROPRIATIONS 

11 SEC. 121. RENEWABLE ENERGY. 

12 (a) IN GENERAL.—The following sums are authorized 

13 to be appropriated to the Secretary for renewable energy 

14 research, development, demonstration, and commercial ap15 plication activities, including activities authorized under 

16 this subtitle: 

17 (1) For fiscal year 2004, $380,000,000. 

18 (2) For fiscal year 2005, $420,000,000. 

19 (3) For fiscal year 2006, $460,000,000. 

20 (4) For fiscal year 2007, $499,000,000. 

21 (b) BIOENERGY.—From the amounts authorized under 

22 subsection (a), the following sums are authorized to be ap23 propriated to carry out section 122 and section 176: 

24 (1) For fiscal year 2004, $135,425,000. 

25 (2) For fiscal year 2005, $155,600,000. 
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1 (3) For fiscal year 2006, $167,650,000. 

2 (4) For fiscal year 2007, $180,000,000. 

3 (c) PUBLIC BUILDINGS.—From the amounts author4 ized under subsection (a), $30,000,000 for each of the fiscal 

5 years 2004 through 2007 are authorized to be appropriated 

6 to carry out section 127. 

7 (d) LIMITS ON USE OF FUNDS.—

8 (1) EXCLUSION.—None of the funds authorized 

9 to be appropriated under this section may be used for 

10 Renewable Support and Implementation. 

11 (2) BIOENERGY.—Of the funds authorized under 

12 subsection (b), not less than $5,000,000 for each fiscal 

13 year shall be made available for grants to Histori14 cally Black Colleges and Universities, Tribal Colleges, 

15 and Hispanic-Serving Institutions. 

16 (3) RURAL AND REMOTE LOCATIONS.—In car17 rying out this section, the Secretary, in consultation 

18 with the Secretary of Agriculture, shall demonstrate 

19 the use of advanced wind power technology, biomass, 

20 geothermal energy systems, and other renewable en21 ergy technologies to assist in delivering electricity to 

22 rural and remote locations. 

23 (4) REGIONAL FIELD VERIFICATION.—Of the 

24 funds authorized under subsection (a), not less than 

25 $4,000,000 for each fiscal year shall be made avail-
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1 able for the Regional Field Verification Program of 

2 the Department. 

3 PART 2—BIOENERGY 

4 SEC. 122. BIOENERGY PROGRAMS. 

5 The Secretary shall conduct a program of research, de6 velopment, demonstration, and commercial application for 

7 bioenergy, including—

8 (1) biopower energy systems; 

9 (2) biofuels; 

10 (3) integrated applications of both biopower and 

11 biofuels; 

12 (4) cross-cutting research and development in 

13 feedstocks; and 

14 (5) economic analysis. 

15 PART 3—MISCELLANEOUS PROJECTS 

16 SEC. 126. MISCELLANEOUS PROJECTS. 

17 (a) PROGRAMS.—The Secretary shall conduct research, 

18 development, demonstration, and commercial application 

19 programs for—

20 (1) ocean energy, including wave energy; 

21 (2) the combined use of renewable energy tech22 nologies with one another and with other energy tech23 nologies, including the combined use of wind power 

24 and coal gasification technologies; and 

25 (3) hydrogen carrier fuels. 
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1 (b) STUDY.—(1) The Secretary shall enter into an ar2 rangement with the National Academy of Sciences to con3 duct a study on—

4 (A) the feasibility of various methods of renew5 able generation of energy from the ocean, including 

6 energy from waves, tides, currents, and thermal gra7 dients; and 

8 (B) the research, development, demonstration, 

9 and commercial application activities required to 

10 make marine renewable energy generation competitive 

11 with other forms of electricity generation. 

12 (2) Not later than 1 year after the date of the enact13 ment of this Act, the Secretary shall transmit the study to 

14 the Congress along with the Secretary’s recommendations 

15 for implementing the results of the study. 

16 SEC. 127. RENEWABLE ENERGY IN PUBLIC BUILDINGS. 

17 (a) DEMONSTRATION AND TECHNOLOGY TRANSFER

18 PROGRAM.—The Secretary shall establish a program for the 

19 demonstration of innovative technologies for solar and other 

20 renewable energy sources in buildings owned or operated 

21 by a State or local government, and for the dissemination 

22 of information resulting from such demonstration to inter23 ested parties. 

24 (b) LIMIT ON FEDERAL FUNDING.—The Secretary 

25 shall provide under this section no more than 40 percent 
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1 of the incremental costs of the solar or other renewable en2 ergy source project funded. 

3 (c) REQUIREMENT.—As part of the application for 

4 awards under this section, the Secretary shall require all 

5 applicants—

6 (1) to demonstrate a continuing commitment to 

7 the use of solar and other renewable energy sources in 

8 buildings they own or operate; and 

9 (2) to state how they expect any award to further 

10 their transition to the significant use of renewable en11 ergy. 

12 Subtitle D—Nuclear Energy 

13 PART 1—AUTHORIZATION OF APPROPRIATIONS 

14 SEC. 131. NUCLEAR ENERGY. 

15 (a) IN GENERAL.—The following sums are authorized 

16 to be appropriated to the Secretary for nuclear energy re17 search, development, demonstration, and commercial appli18 cation activities, including activities authorized under this 

19 subtitle: 

20 (1) For fiscal year 2004, $388,000,000. 

21 (2) For fiscal year 2005, $416,000,000. 

22 (3) For fiscal year 2006, $445,000,000. 

23 (4) For fiscal year 2007, $474,000,000. 

24 (b) ALLOCATIONS.—From amounts authorized under 

25 subsection (a), the following sums are authorized:
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1 (1) NUCLEAR INFRASTRUCTURE SUPPORT.—For 

2 activities under section 132(f)—

3 (A) for fiscal year 2004, $125,000,000; 

4 (B) for fiscal year 2005, $130,000,000; 

5 (C) for fiscal year 2006, $135,000,000; and 

6 (D) for fiscal year 2007, $140,000,000. 

7 (2) ADVANCED FUEL RECYCLING PROGRAM.—For 

8 activities under section 133—

9 (A) for fiscal year 2004, $80,000,000; 

10 (B) for fiscal year 2005, $93,000,000; 

11 (C) for fiscal year 2006, $106,000,000; and 

12 (D) for fiscal year 2007, $120,000,000. 

13 (3) UNIVERSITY PROGRAMS.—For activities 

14 under section 134—

15 (A) for fiscal year 2004, $35,200,000, of 

16 which—

17 (i) $3,000,000 shall be for activities 

18 under subsection (b)(1) of that section; 

19 (ii) $4,275,000 shall be for activities 

20 under subsection (b)(2) of that section; 

21 (iii) $8,000,000 shall be for activities 

22 under subsection (b)(3) of that section; 

23 (iv) $500,000 shall be for activities 

24 under subsection (b)(5) of that section; 
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1 (v) $7,000,000 shall be for activities 

2 under subsection (c)(1) of that section; 

3 (vi) $700,000 shall be for activities 

4 under subsection (c)(2) of that section; 

5 (vii) $10,000,000 shall be for activities 

6 under subsection (c)(3) of that section; 

7 (viii) $1,000,000 shall be for activities 

8 under subsection (d)(1) of that section; and 

9 (ix) $725,000 shall be for activities 

10 under subsection (d)(2) of that section; 

11 (B) for fiscal year 2005, $44,350,000, of 

12 which—

13 (i) $3,100,000 shall be for activities 

14 under subsection (b)(1) of that section; 

15 (ii) $6,275,000 shall be for activities 

16 under subsection (b)(2) of that section; 

17 (iii) $12,000,000 shall be for activities 

18 under subsection (b)(3) of that section; 

19 (iv) $550,000 shall be for activities 

20 under subsection (b)(5) of that section; 

21 (v) $7,500,000 shall be for activities 

22 under subsection (c)(1) of that section; 

23 (vi) $1,100,000 shall be for activities 

24 under subsection (c)(2) of that section; 
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1 (vii) $12,000,000 shall be for activities 

2 under subsection (c)(3) of that section; 

3 (viii) $1,100,000 shall be for activities 

4 under subsection (d)(1) of that section; and 

5 (ix) $725,000 shall be for activities 

6 under subsection (d)(2) of that section; 

7 (C) for fiscal year 2006, $49,200,000, of 

8 which—

9 (i) $3,200,000 shall be for activities 

10 under subsection (b)(1) of that section; 

11 (ii) $7,150,000 shall be for activities 

12 under subsection (b)(2) of that section; 

13 (iii) $13,000,000 shall be for activities 

14 under subsection (b)(3) of that section; 

15 (iv) $600,000 shall be for activities 

16 under subsection (b)(5) of that section; 

17 (v) $8,000,000 shall be for activities 

18 under subsection (c)(1) of that section; 

19 (vi) $1,200,000 shall be for activities 

20 under subsection (c)(2) of that section; 

21 (vii) $14,000,000 shall be for activities 

22 under subsection (c)(3) of that section; 

23 (viii) $1,200,000 shall be for activities 

24 under subsection (d)(1) of that section; and 
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1 (ix) $850,000 shall be for activities 

2 under subsection (d)(2) of that section; and 

3 (D) for fiscal year 2007, $54,950,000, of 

4 which—

5 (i) $3,200,000 shall be for activities 

6 under subsection (b)(1) of that section;

7 (ii) $8,150,000 shall be for activities 

8 under subsection (b)(2) of that section; 

9 (iii) $15,000,000 shall be for activities 

10 under subsection (b)(3) of that section; 

11 (iv) $650,000 shall be for activities 

12 under subsection (b)(5) of that section; 

13 (v) $8,500,000 shall be for activities 

14 under subsection (c)(1); of that section; 

15 (vi) $1,300,000 shall be for activities 

16 under subsection (c)(2) of that section; 

17 (vii) $16,000,000 shall be for activities 

18 under subsection (c)(3) of that section; 

19 (viii) $1,300,000 shall be for activities 

20 under subsection (d)(1) of that section; and 

21 (ix) $850,000 shall be for activities 

22 under subsection (d)(2) of that section. 

23 (4) GEOLOGICAL ISOLATION OF SPENT FUEL.—

24 For activities under section 135—

25 (A) for fiscal year 2004, $7,000,000; 
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1 (B) for fiscal year 2005, $8,000,000; 

2 (C) for fiscal year 2006, $9,000,000; and 

3 (D) for fiscal year 2007, $10,000,000. 

4 (c) LIMIT ON USE OF FUNDS.—None of the funds au5 thorized under this section may be used for decommis6 sioning the Fast Flux Test Facility. 

7 PART 2—NUCLEAR ENERGY RESEARCH 

8 PROGRAMS

9 SEC. 132. NUCLEAR ENERGY RESEARCH PROGRAMS. 

10 (a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 

11 Secretary shall carry out a Nuclear Energy Research Ini12 tiative for research and development related to nuclear en13 ergy. 

14 (b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO15 GRAM.—The Secretary shall carry out a Nuclear Energy 

16 Plant Optimization Program to support research and devel17 opment activities addressing reliability, availability, pro18 ductivity, and component aging in existing nuclear power 

19 plants. 

20 (c) NUCLEAR POWER 2010 PROGRAM.—The Secretary 

21 shall carry out a Nuclear Power 2010 Program, consistent 

22 with recommendations in the October 2001 report entitled 

23 ‘‘A Roadmap to Deploy New Nuclear Power Plants in the 

24 United States by 2010’’ issued by the Nuclear Energy Re-
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1 search Advisory Committee of the Department. The Pro2 gram shall—

3 (1) rely on the expertise and capabilities of the 

4 National Laboratories in the areas of advanced nu5 clear fuels cycles and fuels testing; 

6 (2) pursue an approach that considers a variety 

7 of reactor designs; 

8 (3) include participation of international col9 laborators in research, development, and design efforts 

10 as appropriate; and 

11 (4) encourage industry participation. 

12 (d) GENERATION IV NUCLEAR ENERGY SYSTEMS INI13 TIATIVE.—The Secretary shall carry out a Generation IV 

14 Nuclear Energy Systems Initiative to develop an overall 

15 technology plan and to support research and development 

16 necessary to make an informed technical decision about the 

17 most promising candidates for eventual commercial appli18 cation. The Initiative shall examine advanced proliferation19 resistant and passively safe reactor designs, including de20 signs that—

21 (1) are economically competitive with other elec22 tric power generation plants; 

23 (2) have higher efficiency, lower cost, and im24 proved safety compared to reactors in operation on 

25 the date of enactment of this Act;
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1 (3) use fuels that are proliferation resistant and 

2 have substantially reduced production of high-level 

3 waste per unit of output; and 

4 (4) utilize improved instrumentation. 

5 (e) NUCLEAR PRODUCTION OF HYDROGEN.—Pursuant 

6 to the Spark M. Matsunaga Hydrogen Research, Develop7 ment, and Demonstration Act of 1990, as amended by sub8 title H of this Act, the Secretary shall carry out a program 

9 of research, development, demonstration, and commercial 

10 application on various approaches to nuclear production 

11 of hydrogen. 

12 (f) NUCLEAR INFRASTRUCTURE SUPPORT.—The Sec13 retary shall develop and implement a strategy for the facili14 ties of the Office of Nuclear Energy, Science, and Tech15 nology and shall transmit a report containing the strategy 

16 along with the President’s budget request to the Congress 

17 for fiscal year 2005. Such strategy shall provide a cost-effec18 tive means for—

19 (1) maintaining existing facilities and infra20 structure, as needed; 

21 (2) closing unneeded facilities; 

22 (3) making facility upgrades and modifications; 

23 and 

24 (4) building new facilities. 
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1 PART 3—ADVANCED FUEL RECYCLING 

2 SEC. 133. ADVANCED FUEL RECYCLING PROGRAM. 

3 (a) IN GENERAL.—The Secretary, through the Director 

4 of the Office of Nuclear Energy, Science and Technology, 

5 shall conduct an advanced fuel recycling technology re6 search and development program to evaluate proliferation7 resistant fuel recycling and transmutation technologies 

8 which minimize environmental or public health and safety 

9 impacts as an alternative to aqueous reprocessing tech10 nologies deployed as of the date of enactment of this Act 

11 in support of evaluation of alternative national strategies 

12 for spent nuclear fuel and the Generation IV advanced reac13 tor concepts, subject to annual review by the Secretary’s Nu14 clear Energy Research Advisory Committee or other inde15 pendent entity, as appropriate. Opportunities to enhance 

16 progress of this program through international cooperation 

17 should be sought. 

18 (b) REPORTS.—The Secretary shall report on the ac19 tivities of the advanced fuel recycling technology research 

20 and development program, as part of the Department’s an21 nual budget submission. 

22 PART 4—UNIVERSITY PROGRAMS 

23 SEC. 134. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER24 ING SUPPORT. 

25 (a) ESTABLISHMENT.—The Secretary shall support a 

26 program to invest in human resources and infrastructure 
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1 in the nuclear sciences and engineering and related fields 

2 (including health physics and nuclear and radiochemistry), 

3 consistent with departmental missions related to civilian 

4 nuclear research and development. 

5 (b) DUTIES.—In carrying out the program under this 

6 section, the Secretary shall—

7 (1) establish a graduate and undergraduate fel8 lowship program to attract new and talented stu9 dents; 

10 (2) establish a Junior Faculty Research Initi11 ation Grant Program to assist institutions of higher 

12 education in recruiting and retaining new faculty in 

13 the nuclear sciences and engineering; 

14 (3) support fundamental nuclear sciences and 

15 engineering research through the Nuclear Engineering 

16 Education Research Program; 

17 (4) encourage collaborative nuclear research 

18 among industry, National Laboratories, and institu19 tions of higher education through the Nuclear Energy 

20 Research Initiative; and 

21 (5) support communication and outreach related 

22 to nuclear science and engineering. 

23 (c) STRENGTHENING UNIVERSITY RESEARCH AND

24 TRAINING REACTORS AND ASSOCIATED INFRASTRUC25 TURE.—Activities under this section may include—
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1 (1) converting research reactors currently using 

2 high-enrichment fuels to low-enrichment fuels, up3 grading operational instrumentation, and sharing of 

4 reactors among institutions of higher education; 

5 (2) providing technical assistance, in collabora6 tion with the United States nuclear industry, in reli7 censing and upgrading training reactors as part of a 

8 student training program; and 

9 (3) providing funding, through the Innovations 

10 in Nuclear Infrastructure and Education Program, 

11 for reactor improvements as part of a focused effort 

12 that emphasizes research, training, and education. 

13 (d) UNIVERSITY-NATIONAL LABORATORY INTER14 ACTIONS.—The Secretary shall develop—

15 (1) a sabbatical fellowship program for profes16 sors at institutions of higher education to spend ex17 tended periods of time at National Laboratories in 

18 the areas of nuclear science and technology; and 

19 (2) a visiting scientist program in which Na20 tional Laboratory staff can spend time in academic 

21 nuclear science and engineering departments. 

22 The Secretary may provide fellowships for students to spend 

23 time at National Laboratories in the area of nuclear science 

24 with a member of the Laboratory staff acting as a mentor. 
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1 (e) OPERATING AND MAINTENANCE COSTS.—Funding 

2 for a research project provided under this section may be 

3 used to offset a portion of the operating and maintenance 

4 costs of a research reactor at an institution of higher edu5 cation used in the research project. 

6 PART 5—GEOLOGICAL ISOLATION OF SPENT 

7 FUEL 

8 SEC. 135. GEOLOGICAL ISOLATION OF SPENT FUEL. 

9 (a) IN GENERAL.—The Secretary shall establish a pro10 gram to determine the feasibility of deep borehole disposal 

11 of spent nuclear fuel and high-level radioactive waste. The 

12 program shall emphasize geological, chemical, and 

13 hydrological characterization of, and design of engineered 

14 structures for, deep borehole environments. 

15 (b) PLAN.—Not later than 6 months after the date of 

16 enactment of this Act, the Secretary shall transmit to the 

17 Congress a plan for the program under this section, includ18 ing milestones for achieving the purpose of the program. 

19 (c) FINAL REPORT.—Not later than 5 years after the 

20 date of enactment of this Act, the Secretary shall transmit 

21 to the Congress a final report on the findings of the program 

22 under this section. 
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1 Subtitle E—Fossil Energy 

2 PART 1—AUTHORIZATION OF APPROPRIATIONS 

3 SEC. 141. FOSSIL ENERGY. 

4 (a) IN GENERAL.—The following sums are authorized 

5 to be appropriated to the Secretary for fossil energy re6 search, development, demonstration, and commercial appli7 cation activities, other than those described in subsection 

8 (b), including activities authorized under this subtitle but 

9 not including activities authorized under title V: 

10 (1) For fiscal year 2004, $530,000,000. 

11 (2) For fiscal year 2005, $556,000,000. 

12 (3) For fiscal year 2006, $583,000,000. 

13 (4) For fiscal year 2007, $611,000,000. 

14 No less than 60 percent of the amount appropriated for each 

15 fiscal year under this subsection shall be available for ac16 tivities related to the coal research program under section 

17 142(a). 

18 (b) ULTRA-DEEPWATER AND UNCONVENTIONAL RE19 SOURCES.—

20 (1) OIL AND GAS LEASE INCOME.—For each of 

21 fiscal years 2004 through 2010, from any royalties, 

22 rents, and bonuses derived from Federal onshore and 

23 offshore oil and gas leases issued under the Outer 

24 Continental Shelf Lands Act and the Mineral Leasing 

25 Act which are deposited in the Treasury, and after 
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1 distribution of any such funds as described in para2 graph (2), an amount equal to 7.5 percent of the 

3 amount of royalties, rents, and bonuses derived from 

4 those leases deposited in the Treasury shall be depos5 ited into the Ultra-Deepwater and Unconventional 

6 Natural Gas and Other Petroleum Research Fund (in 

7 this subsection referred to as the Fund). For purposes 

8 of this subsection, the term ‘‘royalties’’ excludes pro9 ceeds from the sale of royalty production taken in 

10 kind and royalty production that is transferred under 

11 section 27(a)(3) of the Outer Continental Shelf Lands 

12 Act (43 U.S.C. 1353(a)(3)). Monies in the Fund shall 

13 be available to the Secretary for obligation under part 

14 3, without fiscal year limitation, to the extent pro15 vided in advance in appropriations Acts. 

16 (2) PRIOR DISTRIBUTIONS.—The distributions 

17 described in paragraph (1) are those required by 

18 law—

19 (A) to States and to the Reclamation Fund 

20 under the Mineral Leasing Act (30 U.S.C. 

21 191(a)); and 

22 (B) to other funds receiving monies from 

23 Federal oil and gas leasing programs, includ24 ing—
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1 (i) any recipients pursuant to section 

2 8(g) of the Outer Continental Shelf Lands 

3 Act (43 U.S.C. 1337(g)); 

4 (ii) the Land and Water Conservation 

5 Fund, pursuant to section 2(c) of the Land 

6 and Water Conservation Fund Act of 1965 

7 (16 U.S.C. 4601–5(c)); and 

8 (iii) the Historic Preservation Fund, 

9 pursuant to section 108 of the National 

10 Historic Preservation Act (16 U.S.C. 470h).

11 (3) ALLOCATION.—Amounts made available 

12 under this subsection in each fiscal year shall be allo13 cated as follows: 

14 (A) 67.5 percent shall be for ultra-deepwater 

15 natural gas and other petroleum activities under 

16 section 145; 

17 (B) 22.5 percent shall be for unconventional 

18 natural gas and other petroleum resource activi19 ties under section 146; and 

20 (C) 10 percent shall be for research com21 plementary to research under section 144(b)(1) 

22 through (3). 

23 (c) ALLOCATIONS.—From amounts authorized under 

24 subsection (a), the following sums are authorized: 
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1 (1) FUEL CELL PROTON EXCHANGE MEMBRANE

2 TECHNOLOGY.—For activities under section 142(c)(2), 

3 $28,000,000 for each of the fiscal years 2004 through 

4 2007. 

5 (2) COAL MINING TECHNOLOGIES.—For activities 

6 under section 143—

7 (A) for fiscal year 2004, $12,000,000; and 

8 (B) for fiscal year 2005, $15,000,000. 

9 (3) OFFICE OF ARCTIC ENERGY.—For the Office 

10 of Arctic Energy under section 3197 of the Floyd D. 

11 Spence National Defense Authorization Act for Fiscal 

12 Year 2001 (Public Law 106–398), $25,000,000 for 

13 each of fiscal years 2004 through 2007. 

14 (d) EXTENDED AUTHORIZATION.—There are author15 ized to be appropriated to the Secretary for the Office of 

16 Arctic Energy under section 3197 of the Floyd D. Spence 

17 National Defense Authorization Act for Fiscal Year 2001 

18 (Public Law 106–398), $25,000,000 for each of fiscal years 

19 2008 through 2011. 

20 (e) LIMITS ON USE OF FUNDS.—

21 (1) EXCLUSIONS.—None of the funds authorized 

22 under this section may be used for—

23 (A) Fossil Energy Environmental Restora24 tion; or 

25 (B) Import/Export Authorization. 
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1 (2) UNIVERSITY COAL MINING RESEARCH.—Of 

2 the funds authorized under subsection (c)(2), not less 

3 than 20 percent of the funds appropriated for each 

4 fiscal year shall be dedicated to research and develop5 ment carried out at institutions of higher education. 

6 PART 2—RESEARCH PROGRAMS 

7 SEC. 142. FOSSIL ENERGY RESEARCH PROGRAMS. 

8 (a) COAL RESEARCH.—(1) In addition to the Clean 

9 Coal Power Initiative authorized under title V, the Sec10 retary shall conduct a program of research, development, 

11 demonstration, and commercial application for coal and 

12 power systems, including—

13 (A) central systems; 

14 (B) sequestration research and development; 

15 (C) fuels; 

16 (D) advanced research; and 

17 (E) advanced separation technologies. 

18 (2) Not later than 6 months after the date of enactment 

19 of this Act, the Secretary shall transmit to the Congress a 

20 report providing—

21 (A) a detailed description of how proposals will 

22 be solicited and evaluated;

23 (B) a list of activities and technical milestones; 

24 and 
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1 (C) a description of how these activities will 

2 complement and not duplicate the Clean Coal Power 

3 Initiative authorized under title V. 

4 (b) OIL AND GAS RESEARCH.—The Secretary shall 

5 conduct a program of research, development, demonstration, 

6 and commercial application on oil and gas, including—

7 (1) exploration and production; 

8 (2) gas hydrates; 

9 (3) reservoir life and extension; 

10 (4) transportation and distribution infrastruc11 ture; 

12 (5) ultraclean fuels; 

13 (6) heavy oil and oil shale; and 

14 (7) environmental research. 

15 (c) FUEL CELLS.—(1) In coordination with the pro16 grams described in the Spark M. Matsunaga Hydrogen Re17 search, Development, and Demonstration Act of 1990, as 

18 amended by subtitle H of this Act, the Secretary shall con19 duct a program of research, development, demonstration, 

20 and commercial application on fuel cells for low-cost, high21 efficiency, fuel-flexible, modular power systems. 

22 (2) The demonstrations shall include fuel cell proton 

23 exchange membrane technology for commercial, residential, 

24 and transportation applications, and distributed genera-
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1 tion systems, utilizing improved manufacturing production 

2 and processes. 

3 (d) NATURAL GAS AND OIL DEPOSITS REPORT.—Not 

4 later than 2 years after the date of the enactment of this 

5 Act, and at 2-year intervals thereafter, the Secretary of the 

6 Interior, in consultation with other appropriate Federal 

7 agencies, shall transmit a report to the Congress of the latest 

8 estimates of natural gas and oil reserves, reserves growth, 

9 and undiscovered resources in Federal and State waters off 

10 the coast of Louisiana and Texas. 

11 (e) TECHNOLOGY TRANSFER.—To the maximum ex12 tent practicable, existing technology transfer mechanisms 

13 shall be used to implement oil and gas exploration and pro14 duction technology transfer programs. 

15 SEC. 143. RESEARCH AND DEVELOPMENT FOR COAL MIN16 ING TECHNOLOGIES. 

17 (a) ESTABLISHMENT.—The Secretary shall carry out 

18 a program of research and development on coal mining 

19 technologies. The Secretary shall cooperate with appro20 priate Federal agencies, coal producers, trade associations, 

21 equipment manufacturers, institutions of higher education 

22 with mining engineering departments, and other relevant 

23 entities. 

24 (b) PROGRAM.—The research and development activi25 ties carried out under this section shall—
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1 (1) be based on the mining research and develop2 ment priorities identified by the Mining Industry of 

3 the Future Program and in the recommendations 

4 from relevant reports of the National Academy of 

5 Sciences on mining technologies; and 

6 (2) expand mining research capabilities at insti7 tutions of higher education.

8 PART 3—ULTRA-DEEPWATER AND UNCONVEN9 TIONAL NATURAL GAS AND OTHER PETRO10 LEUM RESOURCES 

11 SEC. 144. PROGRAM AUTHORITY. 

12 (a) IN GENERAL.—The Secretary shall carry out a 

13 program under this part of research, development, dem14 onstration, and commercial application of technologies for 

15 ultra-deepwater and unconventional natural gas and other 

16 petroleum resource exploration and production, including 

17 safe operations and environmental mitigation (including 

18 reduction of greenhouse gas emissions and sequestration of 

19 carbon). 

20 (b) PROGRAM ELEMENTS.—The program under this 

21 part shall address the following areas, including improving 

22 safety and minimizing environmental impacts of activities 

23 within each area: 

24 (1) Ultra-deepwater technology. 

25 (2) Ultra-deepwater architecture. 
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1 (3) Unconventional natural gas and other petro2 leum resource exploration and production technology. 

3 (c) LIMITATION ON LOCATION OF FIELD ACTIVITIES.—

4 Field activities under the program under this part shall 

5 be carried out only—

6 (1) in—

7 (A) areas in the territorial waters of the 

8 United States not under any Outer Continental 

9 Shelf moratorium as of September 30, 2002; 

10 (B) areas onshore in the United States on 

11 public land administered by the Secretary of the 

12 Interior available for oil and gas leasing, where 

13 consistent with applicable law and land use 

14 plans; and 

15 (C) areas onshore in the United States on 

16 State or private land, subject to applicable law; 

17 and 

18 (2) with the approval of the appropriate Federal 

19 or State land management agency or private land 

20 owner. 

21 (d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY

22 LABORATORY.—The Secretary, through the National En23 ergy Technology Laboratory, shall carry out research com24 plementary to research under subsection (b).
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1 (e) CONSULTATION WITH SECRETARY OF THE INTE2 RIOR.—In carrying out this part, the Secretary shall con3 sult regularly with the Secretary of the Interior. 

4 SEC. 145. ULTRA-DEEPWATER PROGRAM. 

5 (a) IN GENERAL.—The Secretary shall carry out the 

6 activities under paragraphs (1) and (2) of section 144(b), 

7 to maximize the value of the ultra-deepwater natural gas 

8 and other petroleum resources of the United States by in9 creasing the supply of such resources and by reducing the 

10 cost and increasing the efficiency of exploration for and 

11 production of such resources, while improving safety and 

12 minimizing environmental impacts. 

13 (b) ROLE OF THE SECRETARY.—The Secretary shall 

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

15 of the program under this section. 

16 (c) ROLE OF THE PROGRAM CONSORTIUM.—

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

18 with a consortium to—

19 (A) manage awards pursuant to subsection 

20 (f)(4); 

21 (B) make recommendations to the Secretary 

22 for project solicitations; 

23 (C) disburse funds awarded under sub24 section (f) as directed by the Secretary in accord-
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1 ance with the annual plan under subsection (e); 

2 and 

3 (D) carry out other activities assigned to 

4 the program consortium by this section. 

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

6 any activities to the program consortium except as 

7 specifically authorized under this section. 

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

9 shall establish procedures—

10 (i) to ensure that each board member, offi11 cer, or employee of the program consortium who 

12 is in a decisionmaking capacity under subsection 

13 (f)(3) or (4) shall disclose to the Secretary any 

14 financial interests in, or financial relationships 

15 with, applicants for or recipients of awards 

16 under this section, including those of his or her 

17 spouse or minor child, unless such relationships 

18 or interests would be considered to be remote or 

19 inconsequential; and 

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

21 employee with a financial relationship or inter22 est disclosed under clause (i) to recuse himself or 

23 herself from any review under subsection (f)(3) 

24 or oversight under subsection (f)(4) with respect 

25 to such applicant or recipient. 
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1 (B) The Secretary may disqualify an applica2 tion or revoke an award under this section if a board 

3 member, officer, or employee has failed to comply 

4 with procedures required under subparagraph (A)(ii). 

5 (d) SELECTION OF THE PROGRAM CONSORTIUM.—

6 (1) IN GENERAL.—The Secretary shall select the 

7 program consortium through an open, competitive 

8 process. 

9 (2) MEMBERS.—The program consortium may 

10 include corporations, institutions of higher education, 

11 National Laboratories, or other research institutions. 

12 After submitting a proposal under paragraph (4), the 

13 program consortium may not add members without 

14 the consent of the Secretary. 

15 (3) TAX STATUS.—The program consortium shall 

16 be an entity that is exempt from tax under section 

17 501(c)(3) of the Internal Revenue Code of 1986. 

18 (4) SCHEDULE.—Not later than 90 days after 

19 the date of enactment of this Act, the Secretary shall 

20 solicit proposals for the creation of the program con21 sortium, which must be submitted not less than 180 

22 days after the date of enactment of this Act. The Sec23 retary shall select the program consortium not later 

24 than 240 days after such date of enactment. 
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1 (5) APPLICATION.—Applicants shall submit a 

2 proposal including such information as the Secretary 

3 may require. At a minimum, each proposal shall—

4 (A) list all members of the consortium;

5 (B) fully describe the structure of the con6 sortium, including any provisions relating to in7 tellectual property; and 

8 (C) describe how the applicant would carry 

9 out the activities of the program consortium 

10 under this section. 

11 (6) ELIGIBILITY.—To be eligible to be selected as 

12 the program consortium, an applicant must be an en13 tity whose members collectively have demonstrated ca14 pabilities in planning and managing research, devel15 opment, demonstration, and commercial application 

16 programs in natural gas or other petroleum explo17 ration or production. 

18 (7) CRITERION.—The Secretary may consider the 

19 amount of the fee an applicant proposes to receive 

20 under subsection (g) in selecting a consortium under 

21 this section. 

22 (e) ANNUAL PLAN.—

23 (1) IN GENERAL.—The program under this sec24 tion shall be carried out pursuant to an annual plan 
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1 prepared by the Secretary in accordance with para2 graph (2). 

3 (2) DEVELOPMENT.—(A) Before drafting an an4 nual plan under this subsection, the Secretary shall 

5 solicit specific written recommendations from the pro6 gram consortium for each element to be addressed in 

7 the plan, including those described in paragraph (4). 

8 The Secretary may request that the program consor9 tium submit its recommendations in the form of a 

10 draft annual plan. 

11 (B) The Secretary shall submit the recommenda12 tions of the program consortium under subparagraph 

13 (A) to the Ultra-Deepwater Advisory Committee es14 tablished under section 148(a) for review, and such 

15 Advisory Committee shall provide to the Secretary 

16 written comments by a date determined by the Sec17 retary. The Secretary may also solicit comments from 

18 any other experts. 

19 (C) The Secretary shall consult regularly with 

20 the program consortium throughout the preparation 

21 of the annual plan. 

22 (3) PUBLICATION.—The Secretary shall transmit 

23 to the Congress and publish in the Federal Register 

24 the annual plan, along with any written comments 

25 received under paragraph (2)(A) and (B). The annual 
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1 plan shall be transmitted and published not later 

2 than 60 days after the date of enactment of an Act 

3 making appropriations for a fiscal year for the pro4 gram under this section. 

5 (4) CONTENTS.—The annual plan shall describe 

6 the ongoing and prospective activities of the program 

7 under this section and shall include—

8 (A) a list of any solicitations for awards 

9 that the Secretary plans to issue to carry out re10 search, development, demonstration, or commer11 cial application activities, including the topics 

12 for such work, who would be eligible to apply, se13 lection criteria, and the duration of awards; and 

14 (B) a description of the activities expected 

15 of the program consortium to carry out sub16 section (f)(4). 

17 (f) AWARDS.—

18 (1) IN GENERAL.—The Secretary shall make 

19 awards to carry out research, development, dem20 onstration, and commercial application activities 

21 under the program under this section. The program 

22 consortium shall not be eligible to receive such 

23 awards, but members of the program consortium may 

24 receive such awards. 
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1 (2) PROPOSALS.—The Secretary shall solicit pro2 posals for awards under this subsection in such man3 ner and at such time as the Secretary may prescribe, 

4 in consultation with the program consortium. 

5 (3) REVIEW.—The Secretary shall make awards 

6 under this subsection through a competitive process, 

7 which shall include a review by individuals selected 

8 by the Secretary. Such individuals shall include, for 

9 each application, Federal officials, the program con10 sortium, and non-Federal experts who are not board 

11 members, officers, or employees of the program consor12 tium or of a member of the program consortium. 

13 (4) OVERSIGHT.—(A) The program consortium 

14 shall oversee the implementation of awards under this 

15 subsection, consistent with the annual plan under 

16 subsection (e), including disbursing funds and moni17 toring activities carried out under such awards for 

18 compliance with the terms and conditions of the 

19 awards. 

20 (B) Nothing in subparagraph (A) shall limit the 

21 authority or responsibility of the Secretary to oversee 

22 awards, or limit the authority of the Secretary to re23 view or revoke awards. 

24 (C) The Secretary shall provide to the program 

25 consortium the information necessary for the program 
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1 consortium to carry out its responsibilities under this 

2 paragraph. 

3 (g) FEE.—

4 (1) IN GENERAL.—To compensate the program 

5 consortium for carrying out its activities under this 

6 section, the Secretary shall provide to the program 

7 consortium a fee in an amount not to exceed 7.5 per8 cent of the amounts awarded under subsection (f) for 

9 each fiscal year. 

10 (2) ADVANCE.—The Secretary shall advance 

11 funds to the program consortium upon selection of the 

12 consortium, which shall be deducted from amounts to 

13 be provided under paragraph (1). 

14 (h) AUDIT.—The Secretary shall retain an inde15 pendent, commercial auditor to determine the extent to 

16 which funds provided to the program consortium, and funds 

17 provided under awards made under subsection (f), have 

18 been expended in a manner consistent with the purposes 

19 and requirements of this part. The auditor shall transmit 

20 a report annually to the Secretary, who shall transmit the 

21 report to Congress, along with a plan to remedy any defi22 ciencies cited in the report. 
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1 SEC. 146. UNCONVENTIONAL NATURAL GAS AND OTHER PE2 TROLEUM RESOURCES PROGRAM. 

3 (a) IN GENERAL.—The Secretary shall carry out ac4 tivities under section 144(b)(3), to maximize the value of 

5 the onshore unconventional natural gas and other petroleum 

6 resources of the United States by increasing the supply of

7 such resources and by reducing the cost and increasing the 

8 efficiency of exploration for and production of such re9 sources, while improving safety and minimizing environ10 mental impacts. 

11 (b) AWARDS.—

12 (1) IN GENERAL.—The Secretary shall carry out 

13 this section through awards made through an open, 

14 competitive process. 

15 (2) CONSORTIA.—In carrying out paragraph (1), 

16 the Secretary shall give preference to making awards 

17 to consortia. 

18 (c) AUDIT.—The Secretary shall retain an inde19 pendent, commercial auditor to determine the extent to 

20 which funds provided under awards made under this sec21 tion have been expended in a manner consistent with the 

22 purposes and requirements of this part. The auditor shall 

23 transmit a report annually to the Secretary, who shall 

24 transmit the report to Congress, along with a plan to rem25 edy any deficiencies cited in the report.
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1 (d) FOCUS AREAS.—Awards under this section may 

2 focus on areas including advanced coal-bed methane, deep 

3 drilling, natural gas production from tight sands, natural 

4 gas production from gas shales, innovative exploration and 

5 production techniques, enhanced recovery techniques, and 

6 environmental mitigation of unconventional natural gas 

7 and other petroleum resources exploration and production. 

8 (e) ACTIVITIES BY THE UNITED STATES GEOLOGICAL

9 SURVEY.—The Secretary of the Interior, through the United 

10 States Geological Survey, shall, where appropriate, carry 

11 out programs of long-term research to complement the pro12 grams under this section. 

13 SEC. 147. ADDITIONAL REQUIREMENTS FOR AWARDS. 

14 (a) DEMONSTRATION PROJECTS.—An application for 

15 an award under this part for a demonstration project shall 

16 describe with specificity the intended commercial use of the 

17 technology to be demonstrated. 

18 (b) FLEXIBILITY IN LOCATING DEMONSTRATION

19 PROJECTS.—Subject to the limitation in section 144(c), a 

20 demonstration project under this part relating to an ultra21 deepwater technology or an ultra-deepwater architecture 

22 may be conducted in deepwater depths. 

23 (c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 

24 award under this part is made to a consortium (other than 

25 the program consortium), the consortium shall provide to 
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1 the Secretary a signed contract agreed to by all members 

2 of the consortium describing the rights of each member to 

3 intellectual property used or developed under the award. 

4 (d) TECHNOLOGY TRANSFER.—Each recipient of an 

5 award under this part shall conduct technology transfer ac6 tivities, as appropriate, and outreach activities pursuant 

7 to section 192. 

8 (e) COST-SHARING REDUCTION FOR INDEPENDENT

9 PRODUCERS.—In applying the cost-sharing requirements 

10 under section 185 to an award under this part made solely 

11 to an independent producer of oil or gas, the Secretary may 

12 reduce the applicable non-Federal requirement in such sec13 tion to a level not less than 10 percent of the cost of the 

14 project. 

15 SEC. 148. ADVISORY COMMITTEES. 

16 (a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—

17 (1) ESTABLISHMENT.—Not later than 270 days 

18 after the date of enactment of this section, the Sec19 retary shall establish an advisory committee to be 

20 known as the Ultra-Deepwater Advisory Committee. 

21 (2) MEMBERSHIP.—The advisory committee 

22 under this subsection shall be composed of members 

23 appointed by the Secretary and including—

24 (A) individuals with extensive research ex25 perience or operational knowledge of offshore 
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1 natural gas and other petroleum exploration and 

2 production; 

3 (B) individuals broadly representative of 

4 the affected interests in ultra-deepwater natural 

5 gas and other petroleum production, including 

6 interests in environmental protection and safe 

7 operations; 

8 (C) no individuals who are Federal employ9 ees; and 

10 (D) no individuals who are board members, 

11 officers, or employees of the program consortium. 

12 (3) DUTIES.—The advisory committee under this 

13 subsection shall—

14 (A) advise the Secretary on the development 

15 and implementation of programs under this part 

16 related to ultra-deepwater natural gas and other 

17 petroleum resources; and 

18 (B) carry out section 145(e)(2)(B). 

19 (4) COMPENSATION.—A member of the advisory 

20 committee under this subsection shall serve without 

21 compensation but shall receive travel expenses, includ22 ing per diem in lieu of subsistence, in accordance 

23 with applicable provisions under subchapter I of 

24 chapter 57 of title 5, United States Code. 
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1 (b) UNCONVENTIONAL RESOURCES TECHNOLOGY AD2 VISORY COMMITTEE.—

3 (1) ESTABLISHMENT.—Not later than 270 days 

4 after the date of enactment of this section, the Sec5 retary shall establish an advisory committee to be 

6 known as the Unconventional Resources Technology 

7 Advisory Committee. 

8 (2) MEMBERSHIP.—The advisory committee 

9 under this subsection shall be composed of members 

10 appointed by the Secretary and including—

11 (A) individuals with extensive research ex12 perience or operational knowledge of unconven13 tional natural gas and other petroleum resource 

14 exploration and production, including inde15 pendent oil and gas producers; 

16 (B) individuals broadly representative of 

17 the affected interests in unconventional natural 

18 gas and other petroleum resource exploration 

19 and production, including interests in environ20 mental protection and safe operations; and 

21 (C) no individuals who are Federal employ22 ees. 

23 (3) DUTIES.—The advisory committee under this 

24 subsection shall advise the Secretary on the develop25 ment and implementation of activities under this 
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1 part related to unconventional natural gas and other 

2 petroleum resources. 

3 (4) COMPENSATION.—A member of the advisory 

4 committee under this subsection shall serve without 

5 compensation but shall receive travel expenses, includ6 ing per diem in lieu of subsistence, in accordance 

7 with applicable provisions under subchapter I of 

8 chapter 57 of title 5, United States Code. 

9 (c) PROHIBITION.—No advisory committee established 

10 under this section shall make recommendations on funding 

11 awards to consortia or for specific projects. 

12 SEC. 149. LIMITS ON PARTICIPATION. 

13 (a) IN GENERAL.—An entity shall be eligible to receive 

14 an award under this part only if the Secretary finds—

15 (1) that the entity’s participation in the pro16 gram under this part would be in the economic inter17 est of the United States; and 

18 (2) that either—

19 (A) the entity is a United States-owned en20 tity organized under the laws of the United 

21 States; or 

22 (B) the entity is organized under the laws 

23 of the United States and has a parent entity or24 ganized under the laws of a country which af25 fords—
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1 (i) to United States-owned entities op2 portunities, comparable to those afforded to 

3 any other entity, to participate in any co4 operative research venture similar to those 

5 authorized under this part;

6 (ii) to United States-owned entities 

7 local investment opportunities comparable 

8 to those afforded to any other entity; and 

9 (iii) adequate and effective protection 

10 for the intellectual property rights of United 

11 States-owned entities. 

12 (b) SENSE OF CONGRESS AND REPORT.—It is the 

13 Sense of the Congress that ultra-deepwater technology devel14 oped under this part is to be developed primarily for pro15 duction of ultra-deepwater natural gas and other petroleum 

16 resources of the United States, and that this priority is to 

17 be reflected in the terms of grants, contracts, and coopera18 tive agreements entered under this part. As part of the an19 nual Departmental budget submission, the Secretary shall 

20 report on all steps taken to implement the policy described 

21 in this subsection. 

22 SEC. 150. FUND. 

23 There is hereby established in the Treasury of the 

24 United States a separate fund to be known as the ‘‘Ultra-
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1 Deepwater and Unconventional Natural Gas and Other Pe2 troleum Research Fund’’.

3 SEC. 150A. TRANSFER OF ADVANCED OIL AND GAS EXPLO4 RATION AND PRODUCTION TECHNOLOGIES. 

5 (a) ASSESSMENT.—The Secretary shall review tech6 nology programs throughout the Federal Government to as7 sess the suitability of technologies developed thereunder for 

8 use in ultradeep drilling research, development, demonstra9 tion, and commercial application. 

10 (b) TECHNOLOGY TRANSFER.—Not later than 1 year 

11 after the date of enactment of this Act, the Secretary shall 

12 issue a solicitation seeking organizations knowledgeable of 

13 the technology needs of the ultradeep drilling industry. The 

14 Secretary shall select the most qualified applicant to man15 age a program to transfer technologies the Secretary deter16 mines suitable under subsection (a) to appropriate entities. 

17 The organization selected under section 145(d) shall not be 

18 eligible for selection under this subsection. 

19 (c) FUNDING.—From the funds available under section 

20 141(b)(3)(C), $1,000,000 shall be available to carry out this 

21 section in each of the fiscal years 2004 through 2007. 

22 SEC. 151. SUNSET. 

23 The authority provided by this part shall terminate 

24 on September 30, 2010. 
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1 SEC. 152. DEFINITIONS. 

2 In this part: 

3 (1) DEEPWATER.—The term ‘‘deepwater’’ means 

4 a water depth that is greater than 200 but less than 

5 1,500 meters. 

6 (2) PROGRAM CONSORTIUM.—The term ‘‘pro7 gram consortium’’ means the consortium selected 

8 under section 145(d). 

9 (3) REMOTE OR INCONSEQUENTIAL.—The term 

10 ‘‘remote or inconsequential’’ has the meaning given 

11 that term in regulations issued by the Office of Gov12 ernment Ethics under section 208(b)(2) of title 18, 

13 United States Code. 

14 (4) ULTRA-DEEPWATER.—The term ‘‘ultra-deep15 water’’ means a water depth that is equal to or great16 er than 1,500 meters. 

17 (5) ULTRA-DEEPWATER ARCHITECTURE.—The 

18 term ‘‘ultra-deepwater architecture’’ means the inte19 gration of technologies for the exploration for, or pro20 duction of, natural gas or other petroleum resources 

21 located at ultra-deepwater depths. 

22 (6) ULTRA-DEEPWATER TECHNOLOGY.—The term 

23 ‘‘ultra-deepwater technology’’ means a discrete tech24 nology that is specially suited to address one or more 

25 challenges associated with the exploration for, or pro-
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1 duction of, natural gas or other petroleum resources 

2 located at ultra-deepwater depths. 

3 (7) UNCONVENTIONAL NATURAL GAS AND OTHER

4 PETROLEUM RESOURCE.—The term ‘‘unconventional 

5 natural gas and other petroleum resource’’ means nat6 ural gas and other petroleum resource located onshore 

7 in an economically inaccessible geological formation. 

8 Subtitle F—Science 

9 PART 1—AUTHORIZATION OF APPROPRIATIONS 

10 SEC. 161. SCIENCE. 

11 (a) IN GENERAL.—The following sums are authorized 

12 to be appropriated to the Secretary for research, develop13 ment, demonstration, and commercial application activities 

14 of the Office of Science, including activities authorized 

15 under this subtitle, including the amounts authorized under 

16 the amendment made by section 170(c)(2)(C), and includ17 ing basic energy sciences, advanced scientific and com18 puting research, biological and environmental research, fu19 sion energy sciences, high energy physics, nuclear physics, 

20 and research analysis and infrastructure support: 

21 (1) For fiscal year 2004, $3,785,000,000. 

22 (2) For fiscal year 2005, $4,153,000,000. 

23 (3) For fiscal year 2006, $4,618,000,000. 

24 (4) For fiscal year 2007, $5,310,000,000. 
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1 (b) ALLOCATIONS.—From amounts authorized under 

2 subsection (a), the following sums are authorized: 

3 (1) FUSION ENERGY SCIENCES.—(A) For the Fu4 sion Energy Sciences Program, excluding activities 

5 under sections 161A and 162—

6 (i) for fiscal year 2004, $276,000,000; 

7 (ii) for fiscal year 2005, $300,000,000;. 

8 (iii) for fiscal year 2006, $340,000,000; and 

9 (iv) for fiscal year 2007, $350,000,000. 

10 (B) For activities under section 161A and for the 

11 project described in section 162—

12 (i) for fiscal year 2004, $12,000,000; 

13 (ii) for fiscal year 2005, $20,000,000; 

14 (iii) for fiscal year 2006, $50,000,000; and 

15 (iv) for fiscal year 2007, $75,000,000. 

16 (2) SPALLATION NEUTRON SOURCE.—

17 (A) CONSTRUCTION.—For construction of 

18 the Spallation Neutron Source—

19 (i) for fiscal year 2004, $124,600,000; 

20 (ii) for fiscal year 2005, $79,800,000; 

21 and 

22 (iii) for fiscal year 2006, $41,100,000 

23 for completion of construction. 

24 (B) OTHER PROJECT FUNDING.—For other 

25 project costs (including research and development 
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1 necessary to complete the project, preoperations 

2 costs, and capital equipment related to construc3 tion) of the Spallation Neutron Source, 

4 $103,279,000 for the period encompassing fiscal 

5 years 2003 through 2006, to remain available 

6 until expended through September 30, 2006.

7 (3) NANOTECHNOLOGY RESEARCH AND DEVELOP8 MENT.—For activities under section 169—

9 (A) for fiscal year 2004, $265,000,000; 

10 (B) for fiscal year 2005, $292,000,000; 

11 (C) for fiscal year 2006, $322,000,000; and 

12 (D) for fiscal year 2007, $355,000,000. 

13 (4) GENOMES TO LIFE.—

14 (A) TOTAL AUTHORIZATION.—For activities 

15 under section 170B—

16 (i) $100,000,000 for fiscal year 2004; 

17 and 

18 (ii) such sums as may be necessary for 

19 fiscal years 2005 through 2007. 

20 (B) USER FACILITIES AND ANCILLARY

21 EQUIPMENT.—From the amounts authorized 

22 under subparagraph (A), the following sums are 

23 authorized to be appropriated to carry out sec24 tion 170B(e)—
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1 (i) $16,000,000 for fiscal year 2004; 

2 and 

3 (ii) such sums as may be necessary for 

4 fiscal years 2005 through 2007. 

5 (5) SCIENCE AND TECHNOLOGY SCHOLARSHIP

6 PROGRAM.—For activities under section 170C—

7 (A) for fiscal year 2004, $800,000; 

8 (B) for fiscal year 2005, $1,600,000; 

9 (C) for fiscal year 2006, $2,000,000; and 

10 (D) for fiscal year 2007, $2,000,000. 

11 (c) LIMITS ON USE OF FUNDS.—Of the funds author12 ized under subsection (b)(1), no funds shall be available for 

13 implementation of the plan described in section 162. 

14 PART 2—FUSION ENERGY SCIENCES 

15 SEC. 161A. ITER. 

16 (a) IN GENERAL.—The United States is authorized to 

17 participate in ITER in accordance with the provisions of 

18 this section. 

19 (b) AGREEMENT.—(1) The Secretary is authorized to 

20 negotiate an agreement for United States participation in 

21 ITER. 

22 (2) Any agreement for United States participation in 

23 ITER shall, at a minimum—

24 (A) clearly define the United States financial 

25 contribution to construction and operating costs; 
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1 (B) ensure that the share of ITER’s high-tech2 nology components manufactured in the United 

3 States is at least proportionate to the United States 

4 financial contribution to ITER; 

5 (C) ensure that the United States will not be fi6 nancially responsible for cost overruns in components 

7 manufactured in other ITER participating countries; 

8 (D) guarantee the United States full access to all 

9 data generated by ITER; 

10 (E) enable United States researchers to propose 

11 and carry out an equitable share of the experiments 

12 at ITER; 

13 (F) provide the United States with a role in all 

14 collective decisionmaking related to ITER; and 

15 (G) describe the process for discontinuing or de16 commissioning ITER and any United States role in 

17 those processes. 

18 (c) PLAN.—The Secretary, in consultation with the 

19 Fusion Energy Sciences Advisory Committee, shall develop 

20 a plan for the participation of United States scientists in 

21 ITER that shall include the United States research agenda 

22 for ITER, methods to evaluate whether ITER is promoting 

23 progress toward making fusion a reliable and affordable 

24 source of power, and a description of how work at ITER 

25 will relate to other elements of the United States fusion pro-
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1 gram. The Secretary shall request a review of the plan by 

2 the National Academy of Sciences. 

3 (d) LIMITATION.—No funds shall be expended for the 

4 construction of ITER until the Secretary has transmitted 

5 to the Congress—

6 (1) the agreement negotiated pursuant to sub7 section (b) and 120 days have elapsed since that 

8 transmission; 

9 (2) a report describing the management structure 

10 of ITER and providing a fixed dollar estimate of the 

11 cost of United States participation in the construc12 tion of ITER, and 120 days have elapsed since that 

13 transmission; 

14 (3) a report describing how United States par15 ticipation in ITER will be funded without reducing 

16 funding for other programs in the Office of Science, 

17 including other fusion programs, and 60 days have 

18 elapsed since that transmission; and 

19 (4) the plan required by subsection (c) (but not 

20 the National Academy of Sciences review of that 

21 plan), and 60 days have elapsed since that trans22 mission. 

23 (e) DEFINITIONS.—In this section—

24 (1) the term ‘‘construction’’ means the physical 

25 construction of the ITER facility, and the physical 
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1 construction, purchase, or manufacture of equipment 

2 or components that are specifically designed for the 

3 ITER facility, but does not mean the design of the fa4 cility, equipment, or components; and 

5 (2) the term ‘‘ITER’’ means the international 

6 burning plasma fusion research project in which the 

7 President announced United States participation on 

8 January 30, 2003.

9 SEC. 162. PLAN FOR FUSION EXPERIMENT. 

10 (a) IN GENERAL.—If at any time during the negotia11 tions on ITER, the Secretary determines that construction 

12 and operation of ITER is unlikely or infeasible, the Sec13 retary shall send to Congress, as part of the budget request 

14 for the following year, a plan for implementing the domestic 

15 burning plasma experiment known as FIRE, including 

16 costs and schedules for such a plan. The Secretary shall re17 fine such plan in full consultation with the Fusion Energy 

18 Sciences Advisory Committee and shall also transmit such 

19 plan to the National Academy of Sciences for review. 

20 (b) DEFINITIONS.—As used in this section—

21 (1) the term ‘‘ITER’’ has the meaning given that 

22 term in section 161A; and 

23 (2) the term ‘‘FIRE’’ means the Fusion Ignition 

24 Research Experiment, the fusion research experiment 

25 for which design work has been supported by the De-
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1 partment as a possible alternative burning plasma ex2 periment in the event that ITER fails to move for3 ward. 

4 SEC. 163. PLAN FOR FUSION ENERGY SCIENCES PROGRAM. 

5 (a) DECLARATION OF POLICY.—It shall be the policy 

6 of the United States to conduct research, development, dem7 onstration, and commercial application to provide for the 

8 scientific, engineering, and commercial infrastructure nec9 essary to ensure that the United States is competitive with 

10 other nations in providing fusion energy for its own needs 

11 and the needs of other nations, including by demonstrating 

12 electric power or hydrogen production for the United States 

13 energy grid utilizing fusion energy at the earliest date pos14 sible. 

15 (b) FUSION ENERGY PLAN.—

16 (1) IN GENERAL.—Within 6 months after the 

17 date of enactment of this Act, the Secretary shall 

18 transmit to Congress a plan for carrying out the pol19 icy set forth in subsection (a), including cost esti20 mates, proposed budgets, potential international part21 ners, and specific programs for implementing such 

22 policy. 

23 (2) REQUIREMENTS OF PLAN.—Such plan shall 

24 also ensure that—
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1 (A) existing fusion research facilities are 

2 more fully utilized; 

3 (B) fusion science, technology, theory, ad4 vanced computation, modeling, and simulation 

5 are strengthened;

6 (C) new magnetic and inertial fusion re7 search facilities are selected based on scientific 

8 innovation, cost effectiveness, and their potential 

9 to advance the goal of practical fusion energy at 

10 the earliest date possible; 

11 (D) such facilities that are selected are 

12 funded at a cost-effective rate; 

13 (E) communication of scientific results and 

14 methods between the fusion energy science com15 munity and the broader scientific and technology 

16 communities is improved; 

17 (F) inertial confinement fusion facilities are 

18 utilized to the extent practicable for the purpose 

19 of inertial fusion energy research and develop20 ment; and 

21 (G) attractive alternative inertial and mag22 netic fusion energy approaches are more fully ex23 plored. 

24 (3) REPORT ON FUSION MATERIALS AND TECH25 NOLOGY PROJECT.—In addition, the plan required by 
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1 this subsection shall also address the status of, and to 

2 the degree possible, the costs and schedules for—

3 (A) the design and implementation of inter4 national or national facilities for the testing of 

5 fusion materials; and 

6 (B) the design and implementation of inter7 national or national facilities for the testing and 

8 development of key fusion technologies. 

9 PART 3—SPALLATION NEUTRON SOURCE 

10 SEC. 164. DEFINITION. 

11 For the purposes of this part, the term ‘‘Spallation 

12 Neutron Source’’ means Department Project 99–E–334, 

13 Oak Ridge National Laboratory, Oak Ridge, Tennessee. 

14 SEC. 165. REPORT. 

15 The Secretary shall report on the Spallation Neutron 

16 Source as part of the Department’s annual budget submis17 sion, including a description of the achievement of mile18 stones, a comparison of actual costs to estimated costs, and 

19 any changes in estimated project costs or schedule. 

20 SEC. 166. LIMITATIONS. 

21 The total amount obligated by the Department, includ22 ing prior year appropriations, for the Spallation Neutron 

23 Source may not exceed—

24 (1) $1,192,700,000 for costs of construction; 

25 (2) $219,000,000 for other project costs; and 
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1 (3) $1,411,700,000 for total project cost. 

2 PART 4—MISCELLANEOUS 

3 SEC. 167. FACILITY AND INFRASTRUCTURE SUPPORT FOR 

4 NONMILITARY ENERGY LABORATORIES. 

5 (a) FACILITY POLICY.—The Secretary shall develop 

6 and implement a strategy for the nonmilitary energy lab7 oratories and facilities of the Office of Science. Such strat8 egy shall provide a cost-effective means for—

9 (1) maintaining existing facilities and infra10 structure, as needed; 

11 (2) closing unneeded facilities; 

12 (3) making facility modifications; and 

13 (4) building new facilities. 

14 (b) REPORT.—

15 (1) TRANSMITTAL.—The Secretary shall prepare 

16 and transmit, along with the President’s budget re17 quest to the Congress for fiscal year 2005, a report 

18 containing the strategy developed under subsection 

19 (a). 

20 (2) CONTENTS.—For each nonmilitary energy 

21 laboratory and facility, such report shall contain—

22 (A) the current priority list of proposed fa23 cilities and infrastructure projects, including 

24 cost and schedule requirements; 
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1 (B) a current ten-year plan that dem2 onstrates the reconfiguration of its facilities and 

3 infrastructure to meet its missions and to ad4 dress its long-term operational costs and return 

5 on investment; 

6 (C) the total current budget for all facilities 

7 and infrastructure funding; and 

8 (D) the current status of each facilities and 

9 infrastructure project compared to the original 

10 baseline cost, schedule, and scope. 

11 SEC. 168. RESEARCH REGARDING PRECIOUS METAL CATAL12 YSIS. 

13 From the amounts authorized to be appropriated to 

14 the Secretary under section 161, such sums as may be nec15 essary for each of the fiscal years 2004, 2005, and 2006 

16 may be used to carry out research in the use of precious 

17 metals (excluding platinum, palladium, and rhodium) in 

18 catalysis. 

19 SEC. 169. NANOTECHNOLOGY RESEARCH AND DEVELOP20 MENT. 

21 (a) IN GENERAL.—The Secretary, acting through the 

22 Office of Science, shall implement a Nanotechnology Re23 search and Development Program to promote 

24 nanotechnology research, development, demonstration, edu25 cation, technology transfer, and commercial application ac-
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1 tivities as necessary to ensure continued United States lead2 ership in nanotechnology across scientific and engineering 

3 disciplines. 

4 (b) PROGRAM ACTIVITIES.—The activities of the 

5 Nanotechnology Research and Development Program shall 

6 be designed to—

7 (1) provide sustained support for nanotechnology 

8 research and development through—

9 (A) grants to individual investigators and 

10 interdisciplinary teams of investigators; and 

11 (B) establishment of interdisciplinary re12 search centers and advanced technology user fa13 cilities; 

14 (2) ensure that solicitation and evaluation of 

15 proposals under the Program encourage interdiscipli16 nary research; 

17 (3) expand education and training of under18 graduate and graduate students in interdisciplinary 

19 nanotechnology science and engineering; 

20 (4) accelerate the commercial application of 

21 nanotechnology innovations in the private sector; 

22 (5) ensure that societal and ethical concerns will 

23 be addressed as the technology is developed by—

24 (A) establishing a research program to iden25 tify societal and ethical concerns related to 
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1 nanotechnology, and ensuring that the results of 

2 such research are widely disseminated; and

3 (B) integrating, insofar as possible, research 

4 on societal and ethical concerns with 

5 nanotechnology research and development; and 

6 (6) ensure that the potential of nanotechnology to 

7 produce or facilitate the production of clean, inexpen8 sive energy is realized by supporting nanotechnology 

9 energy applications research and development. 

10 (c) DEFINITIONS.—For the purposes of this section—

11 (1) the term ‘‘nanotechnology’’ means science 

12 and engineering aimed at creating materials, devices, 

13 and systems at the atomic and molecular level; and 

14 (2) the term ‘‘advanced technology user facility’’ 

15 means a nanotechnology research and development fa16 cility supported, in whole or in part, by Federal 

17 funds that is open to all United States researchers on 

18 a competitive, merit-reviewed basis.

19 (d) REPORT.—Within 2 years after the date of enact20 ment of this Act, the Secretary shall transmit to the Con21 gress a report describing the projects to identify societal and 

22 ethical concerns related to nanotechnology and the funding 

23 provided to support these projects. 
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1 SEC. 170. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY 

2 MISSIONS. 

3 (a) IN GENERAL.—The Secretary, acting through the 

4 Office of Science, shall support a program to advance the 

5 Nation’s computing capability across a diverse set of grand 

6 challenge computationally based science problems related to 

7 departmental missions. 

8 (b) DUTIES OF THE OFFICE OF SCIENCE.—In car9 rying out the program under this section, the Office of 

10 Science shall—

11 (1) advance basic science through computation 

12 by developing software to solve grand challenge 

13 science problems on new generations of computing 

14 platforms; 

15 (2) enhance the foundations for scientific com16 puting by developing the basic mathematical and 

17 computing systems software needed to take full advan18 tage of the computing capabilities of computers with 

19 peak speeds of 100 teraflops or more, some of which 

20 may be unique to the scientific problem of interest; 

21 (3) enhance national collaboratory and net22 working capabilities by developing software to inte23 grate geographically separated researchers into effec24 tive research teams and to facilitate access to and 

25 movement and analysis of large (petabyte) data sets; 
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1 (4) develop and maintain a robust scientific 

2 computing hardware infrastructure to ensure that the 

3 computing resources needed to address departmental 

4 missions are available; and 

5 (5) explore new computing approaches and tech6 nologies that promise to advance scientific computing. 

7 (c) HIGH-PERFORMANCE COMPUTING ACT OF 1991 

8 AMENDMENTS.—The High-Performance Computing Act of 

9 1991 is amended—

10 (1) in section 4 (15 U.S.C. 5503)—

11 (A) in paragraph (3)—

12 (i) by striking ‘‘means’’ and inserting 

13 ‘‘and ‘networking and information tech14 nology’ mean’’; and 

15 (ii) by striking ‘‘(including vector 

16 supercomputers and large scale parallel sys17 tems)’’; and 

18 (B) in paragraph (4), by striking ‘‘packet 

19 switched’’; and 

20 (2) in section 203 (15 U.S.C. 5523)—

21 (A) in subsection (a), by striking all after 

22 ‘‘As part of the’’ and inserting ‘‘Networking and 

23 Information Technology Research and Develop24 ment Program, the Secretary of Energy shall 

25 conduct basic and applied research in net-
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1 working and information technology, with em2 phasis on—

3 ‘‘(1) supporting fundamental research in the 

4 physical sciences and engineering, and energy appli5 cations; 

6 ‘‘(2) providing supercomputer access and ad7 vanced communication capabilities and facilities to 

8 scientific researchers; and 

9 ‘‘(3) developing tools for distributed scientific 

10 collaboration.’’; 

11 (B) in subsection (b), by striking ‘‘Pro12 gram’’ and inserting ‘‘Networking and Informa13 tion Technology Research and Development Pro14 gram’’; and 

15 (C) by amending subsection (e) to read as 

16 follows: 

17 ‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There are 

18 authorized to be appropriated to the Secretary of Energy 

19 to carry out the Networking and Information Technology 

20 Research and Development Program such sums as may be 

21 necessary for fiscal years 2004 through 2007.’’. 

22 (d) COORDINATION.—The Secretary shall ensure that 

23 the program under this section is integrated and consistent 

24 with—
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1 (1) the Accelerated Strategic Computing Initia2 tive of the National Nuclear Security Administration; 

3 and 

4 (2) other national efforts related to advanced sci5 entific computing for science and engineering.

6 (e) REPORT.—(1) Before undertaking any new initia7 tive to develop new advanced architecture for high-speed 

8 computing, the Secretary, through the Director of the Office 

9 of Science, shall transmit a report to the Congress describ10 ing—

11 (A) the expected duration and cost of the initia12 tive; 

13 (B) the technical milestones the initiative is de14 signed to achieve; 

15 (C) how institutions of higher education and pri16 vate firms will participate in the initiative; and 

17 (D) why the goals of the initiative could not be 

18 achieved through existing programs. 

19 (2) No funds may be expended on any initiative de20 scribed in paragraph (1) until 30 days after the report re21 quired by that paragraph is transmitted to the Congress. 

22 SEC. 170A. NITROGEN FIXATION. 

23 The Secretary, acting through the Office of Science, 

24 shall support a program of research, development, dem25 onstration, and commercial application on biological nitro-
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1 gen fixation, including plant genomics research relevant to 

2 the development of commercial crop varieties with enhanced 

3 nitrogen fixation efficiency and ability.

4 PART 5—GENOMES TO LIFE 

5 SEC. 170B. GENOMES TO LIFE. 

6 (a) FINDINGS.—The Congress finds the following: 

7 (1) The Department’s Genomes to Life initiative 

8 involves the emerging fields of systems biology and 

9 proteomics, which address the ability to understand 

10 the composition and function of the biochemical net11 works and pathways that carry out the essential proc12 esses of living organisms. 

13 (2) The Genomes to Life initiative builds on the 

14 Department’s integral role in the Human Genome 

15 Project, which has led to the mapping, sequencing, 

16 and identification of genetic material. Genomes to 

17 Life will go beyond mapping to develop an under18 standing of how genetic components interact to per19 form cellular activities vital to life. 

20 (3) The ability of the United States to respond 

21 to the national security, energy, and environmental 

22 challenges of the 21st century will be driven by 

23 science and technology. An integrated and predictive 

24 understanding of biological systems will enable the 

25 United States to develop new technologies related to 
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1 the detection of biological and chemical agents, energy 

2 production, carbon sequestration, bioremediation, and 

3 other Department statutory missions. These advances 

4 will also enhance the strength of United States 

5 science, technology, and medicine generally. 

6 (4) The fundamental intellectual challenges in7 herent in the Genomes to Life initiative are consider8 able, and require public support for basic and applied 

9 research and development. Significant advances in 

10 areas such as the characterization of multiprotein 

11 complexes and gene regulatory networks will be re12 quired before biologically-based solutions and tech13 nologies will be useful in national security applica14 tions, as well as to the energy, medical, and agricul15 tural industries. 

16 (5) The development of new scientific instru17 ments will also be required to advance Genomes to 

18 Life research. Such instruments are likely to be large 

19 and costly. Specialized facilities are also likely to be 

20 required in order to advance the field and to realize 

21 its promise. Such facilities will be sufficiently expen22 sive that they will have to be located and constructed 

23 on a centralized basis, similar to a number of unique 

24 facilities already managed by the Department. 
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1 (6) Contributions from individual researchers as 

2 well as multidisciplinary research teams will be re3 quired to advance systems biology and proteomics. 

4 (7) The Department’s Office of Science is well 

5 suited to manage systems biology and proteomics re6 search for the Department. Through its support of re7 search and development pursuant to the Department’s 

8 statutory authorities, the Office of Science is the prin9 cipal Federal supporter of research and development 

10 in the physical and computational sciences. The Of11 fice is also a significant source of Federal support for 

12 research in genomics and the life sciences. The Office 

13 supports research and development by individual in14 vestigators and multidisciplinary teams, and man15 ages special user facilities that serve investigators in 

16 both university and industry. 

17 (b) ESTABLISHMENT OF PROGRAM.—The Secretary 

18 shall carry out a program of research, development, dem19 onstration, and commercial application, to be known as the 

20 Genomes to Life Program, in systems biology and 

21 proteomics. 

22 (c) PLANNING.—

23 (1) IN GENERAL.—Within one year after the date 

24 of enactment of this Act, the Secretary shall prepare 

25 and transmit to Congress a Program plan describing 
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1 how knowledge and capabilities would be developed by 

2 the Program and applied to Department missions re3 lating to energy, environmental cleanup, and sta4 bilization of atmospheric levels of carbon dioxide. 

5 (2) CONSULTATION.—The Program plan will be 

6 developed in consultation with other relevant Depart7 ment technology programs and other relevant Federal 

8 agencies. 

9 (3) LONG-TERM GOALS.—The Program plan 

10 shall focus science and technology on long-term goals 

11 including—

12 (A) contributing to United States independ13 ence from foreign energy sources; 

14 (B) stabilizing atmospheric levels of carbon 

15 dioxide; 

16 (C) advancing environmental cleanup; and 

17 (D) providing the science and technology 

18 basis for new industries in biotechnology. 

19 (4) SPECIFIC GOALS.—The Program plan shall 

20 identify appropriate research, development, dem21 onstration, and commercial application activities to 

22 address the following issues within the next decade: 

23 (A) Identifying new biological sources of 

24 fuels and electricity, with particular emphasis 
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1 on creating biological technologies for the pro2 duction and utilization of hydrogen. 

3 (B) Understanding the Earth’s natural car4 bon cycle and creating strategies to stabilize at5 mospheric carbon dioxide. 

6 (C) Developing a knowledge and capability 

7 base for exploring more cost-effective cleanup 

8 strategies for Department sites. 

9 (D) Capturing key biological processes in 

10 engineered systems not requiring living cells. 

11 (5) REVIEW.—The Secretary shall enter into an 

12 arrangement with the National Academy of Sciences 

13 to review the plan developed under this subsection. 

14 The Secretary shall transmit the review to the Con15 gress not later than 6 months after the transmittal of 

16 the Program plan under paragraph (1), along with 

17 an explanation of any differences between the plan 

18 and the recommendations of the Academy. 

19 (d) PROGRAM EXECUTION.—In carrying out the Pro20 gram under this section, the Secretary shall—

21 (1) support individual investigators and multi22 disciplinary teams of investigators; 

23 (2) subject to subsection (e), develop, plan, con24 struct, acquire, or operate special equipment or facili25 ties for the use of investigators conducting research, 
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1 development, demonstration, or commercial applica2 tion in systems biology and proteomics;

3 (3) support technology transfer activities to ben4 efit industry and other users of systems biology and 

5 proteomics; and 

6 (4) coordinate activities by the Department with 

7 academia, industry, and other Federal agencies. 

8 (e) USER FACILITIES AND ANCILLARY EQUIPMENT.—

9 (1) FACILITIES.—As part of the Genomes to Life 

10 Program, the Secretary is authorized to develop, plan, 

11 construct, acquire, or operate special equipment, in12 strumentation, or facilities for investigators con13 ducting research, development, demonstration, and 

14 commercial application projects in systems biology 

15 and proteomics and associated biological disciplines. 

16 (2) PROJECTS.—Projects referred to in para17 graph (1) may include—

18 (A) the identification and characterization 

19 of multiprotein complexes; 

20 (B) characterization of gene regulatory net21 works; 

22 (C) characterization of the functional rep23 ertoire of complex microbial communities in 

24 their natural environments at the molecular 

25 level; and 
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1 (D) development of computational methods 

2 and capabilities to advance understanding of 

3 complex biological systems and predict their be4 havior. 

5 (3) FACILITIES.—Facilities supported under 

6 paragraph (1) may include facilities for—

7 (A) the production and characterization of 

8 proteins; 

9 (B) whole proteome analysis; 

10 (C) characterization and imaging of molec11 ular machines; and 

12 (D) analysis and modeling of cellular sys13 tems. 

14 (4) COLLABORATION.—The Secretary shall en15 courage collaborations among universities, labora16 tories, and industry at facilities supported under this 

17 subsection. All facilities supported under this sub18 section shall have a specific mission of technology 

19 transfer to other institutions. 

20 (f) DEFINITIONS.—For purposes of this section: 

21 (1) PROGRAM.—The term ‘‘Program’’ means the 

22 Genomes to Life Program carried out under this sec23 tion. 

24 (2) PROTEOMICS.—The term ‘‘proteomics’’ 

25 means the determination of the structure, function, 
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1 and expression of the proteins encoded in any genome, 

2 including new protein sequences encoded in a genome 

3 for which the structural or functional correlates are 

4 not currently known.

5 SEC. 170C. DEPARTMENT OF ENERGY SCIENCE AND TECH6 NOLOGY SCHOLARSHIP PROGRAM. 

7 (a) ESTABLISHMENT OF PROGRAM.—

8 (1) IN GENERAL.—The Secretary shall establish 

9 a Department of Energy Science and Technology 

10 Scholarship Program to award scholarships to indi11 viduals that is designed to recruit and prepare stu12 dents for careers in the Department. 

13 (2) COMPETITIVE PROCESS.—Individuals shall 

14 be selected to receive scholarships under this section 

15 through a competitive process primarily on the basis 

16 of academic merit, with consideration given to finan17 cial need and the goal of promoting the participation 

18 of individuals identified in section 33 or 34 of the 

19 Science and Engineering Equal Opportunities Act 

20 (42 U.S.C. 1885a or 1885b). 

21 (3) SERVICE AGREEMENTS.—To carry out the 

22 Program the Secretary shall enter into contractual 

23 agreements with individuals selected under paragraph 

24 (2) under which the individuals agree to serve as full25 time employees of the Department, for the period de-
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1 scribed in subsection (f)(1), in positions needed by the 

2 Department and for which the individuals are quali3 fied, in exchange for receiving a scholarship. 

4 (b) SCHOLARSHIP ELIGIBILITY.—In order to be eligi5 ble to participate in the Program, an individual must—

6 (1) be enrolled or accepted for enrollment as a 

7 full-time student at an institution of higher education 

8 in an academic program or field of study described 

9 in the list made available under subsection (d); 

10 (2) be a United States citizen; and 

11 (3) at the time of the initial scholarship award, 

12 not be a Federal employee as defined in section 2105 

13 of title 5 of the United States Code. 

14 (c) APPLICATION REQUIRED.—An individual seeking 

15 a scholarship under this section shall submit an application 

16 to the Secretary at such time, in such manner, and con17 taining such information, agreements, or assurances as the 

18 Secretary may require. 

19 (d) ELIGIBLE ACADEMIC PROGRAMS.—The Secretary 

20 shall make publicly available a list of academic programs 

21 and fields of study for which scholarships under the Pro22 gram may be utilized, and shall update the list as nec23 essary. 

24 (e) SCHOLARSHIP REQUIREMENT.—
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1 (1) IN GENERAL.—The Secretary may provide a 

2 scholarship under the Program for an academic year 

3 if the individual applying for the scholarship has sub4 mitted to the Secretary, as part of the application re5 quired under subsection (c), a proposed academic pro6 gram leading to a degree in a program or field of 

7 study on the list made available under subsection (d). 

8 (2) DURATION OF ELIGIBILITY.—An individual 

9 may not receive a scholarship under this section for 

10 more than 4 academic years, unless the Secretary 

11 grants a waiver. 

12 (3) SCHOLARSHIP AMOUNT.—The dollar amount 

13 of a scholarship under this section for an academic 

14 year shall be determined under regulations issued by 

15 the Secretary, but shall in no case exceed the cost of 

16 attendance. 

17 (4) AUTHORIZED USES.—A scholarship provided 

18 under this section may be expended for tuition, fees, 

19 and other authorized expenses as established by the 

20 Secretary by regulation. 

21 (5) CONTRACTS REGARDING DIRECT PAYMENTS

22 TO INSTITUTIONS.—The Secretary may enter into a 

23 contractual agreement with an institution of higher 

24 education under which the amounts provided for a 

25 scholarship under this section for tuition, fees, and 
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1 other authorized expenses are paid directly to the in2 stitution with respect to which the scholarship is pro3 vided. 

4 (f) PERIOD OF OBLIGATED SERVICE.—

5 (1) DURATION OF SERVICE.—The period of serv6 ice for which an individual shall be obligated to serve 

7 as an employee of the Department is, except as pro8 vided in subsection (h)(2), 24 months for each aca9 demic year for which a scholarship under this section 

10 is provided. 

11 (2) SCHEDULE FOR SERVICE.—(A) Except as 

12 provided in subparagraph (B), obligated service 

13 under paragraph (1) shall begin not later than 60 

14 days after the individual obtains the educational de15 gree for which the scholarship was provided. 

16 (B) The Secretary may defer the obligation of an 

17 individual to provide a period of service under para18 graph (1) if the Secretary determines that such a de19 ferral is appropriate. The Secretary shall prescribe 

20 the terms and conditions under which a service obli21 gation may be deferred through regulation. 

22 (g) PENALTIES FOR BREACH OF SCHOLARSHIP

23 AGREEMENT.—

24 (1) FAILURE TO COMPLETE ACADEMIC TRAIN25 ING.—Scholarship recipients who fail to maintain a 
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1 high level of academic standing, as defined by the

2 Secretary by regulation, who are dismissed from their 

3 educational institutions for disciplinary reasons, or 

4 who voluntarily terminate academic training before 

5 graduation from the educational program for which 

6 the scholarship was awarded, shall be in breach of 

7 their contractual agreement and, in lieu of any serv8 ice obligation arising under such agreement, shall be 

9 liable to the United States for repayment within 1 

10 year after the date of default of all scholarship funds 

11 paid to them and to the institution of higher edu12 cation on their behalf under the agreement, except as 

13 provided in subsection (h)(2). The repayment period 

14 may be extended by the Secretary when determined 

15 to be necessary, as established by regulation. 

16 (2) FAILURE TO BEGIN OR COMPLETE THE SERV17 ICE OBLIGATION OR MEET THE TERMS AND CONDI18 TIONS OF DEFERMENT.—Scholarship recipients who, 

19 for any reason, fail to begin or complete their service 

20 obligation after completion of academic training, or 

21 fail to comply with the terms and conditions of 

22 deferment established by the Secretary pursuant to 

23 subsection (f)(2)(B), shall be in breach of their con24 tractual agreement. When recipients breach their 

25 agreements for the reasons stated in the preceding 
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1 sentence, the recipient shall be liable to the United 

2 States for an amount equal to—

3 (A) the total amount of scholarships re4 ceived by such individual under this section; 

5 plus 

6 (B) the interest on the amounts of such 

7 awards which would be payable if at the time 

8 the awards were received they were loans bearing 

9 interest at the maximum legal prevailing rate, 

10 as determined by the Treasurer of the United 

11 States, 

12 multiplied by 3. 

13 (h) WAIVER OR SUSPENSION OF OBLIGATION.—

14 (1) DEATH OF INDIVIDUAL.—Any obligation of 

15 an individual incurred under the Program (or a con16 tractual agreement thereunder) for service or payment 

17 shall be canceled upon the death of the individual. 

18 (2) IMPOSSIBILITY OR EXTREME HARDSHIP.—

19 The Secretary shall by regulation provide for the par20 tial or total waiver or suspension of any obligation 

21 of service or payment incurred by an individual 

22 under the Program (or a contractual agreement there23 under) whenever compliance by the individual is im24 possible or would involve extreme hardship to the in25 dividual, or if enforcement of such obligation with re-
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1 spect to the individual would be contrary to the best 

2 interests of the Government. 

3 (i) DEFINITIONS.—In this section the following defini4 tions apply: 

5 (1) COST OF ATTENDANCE.—The term ‘‘cost of 

6 attendance’’ has the meaning given that term in sec7 tion 472 of the Higher Education Act of 1965 (20 

8 U.S.C. 1087ll). 

9 (2) INSTITUTION OF HIGHER EDUCATION.—The 

10 term ‘‘institution of higher education’’ has the mean11 ing given that term in section 101(a) of the Higher 

12 Education Act of 1965 (20 U.S.C. 1001(a)). 

13 (3) PROGRAM.—The term ‘‘Program’’ means the 

14 Department of Energy Science and Technology Schol15 arship Program established under this section. 

16 Subtitle G—Energy and 

17 Environment 

18 SEC. 171. AUTHORIZATION OF APPROPRIATIONS. 

19 (a) UNITED STATES-MEXICO ENERGY TECHNOLOGY

20 COOPERATION.—The following sums are authorized to be 

21 appropriated to the Secretary to carry out activities under 

22 section 172: 

23 (1) For fiscal year 2004, $5,000,000. 

24 (2) For fiscal year 2005, $6,000,000. 

25 (3) For fiscal year 2006, $6,000,000. 
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1 (4) For fiscal year 2007, $6,000,000. 

2 (b) WASTE REDUCTION AND USE OF ALTER3 NATIVES.—There are authorized to be appropriated to the 

4 Secretary to carry out activities under section 173, 

5 $500,000 for fiscal year 2004. 

6 SEC. 172. UNITED STATES-MEXICO ENERGY TECHNOLOGY 

7 COOPERATION. 

8 (a) PROGRAM.—The Secretary shall establish a re9 search, development, demonstration, and commercial appli10 cation program to be carried out in collaboration with enti11 ties in Mexico and the United States to promote energy effi12 cient, environmentally sound economic development along 

13 the United States-Mexico border. 

14 (b) PROGRAM MANAGEMENT.—The program under 

15 subsection (a) shall be managed by the Department of En16 ergy Carlsbad Environmental Management Field Office. 

17 (c) TECHNOLOGY TRANSFER.—In carrying out 

18 projects and activities under this section, the Secretary shall 

19 assess the applicability of technology developed under the 

20 Environmental Management Science Program of the De21 partment. 

22 (d) INTELLECTUAL PROPERTY.—In carrying out this 

23 section, the Secretary shall comply with the requirements 

24 of any agreement entered into between the United States 

25 and Mexico regarding intellectual property protection. 
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1 SEC. 173. WASTE REDUCTION AND USE OF ALTERNATIVES. 

2 (a) GRANT AUTHORITY.—The Secretary is authorized 

3 to make a single grant to a qualified institution to examine 

4 and develop the feasibility of burning post-consumer carpet 

5 in cement kilns as an alternative energy source. The pur6 poses of the grant shall include determining—

7 (1) how post-consumer carpet can be burned 

8 without disrupting kiln operations; 

9 (2) the extent to which overall kiln emissions 

10 may be reduced; 

11 (3) the emissions of air pollutants and other rel12 evant environmental impacts; and 

13 (4) how this process provides benefits to both ce14 ment kiln operations and carpet suppliers. 

15 (b) QUALIFIED INSTITUTION.—For the purposes of 

16 subsection (a), a qualified institution is a research-intensive 

17 institution of higher education with demonstrated expertise 

18 in the fields of fiber recycling and logistical modeling of 

19 carpet waste collection and preparation. 

20 SEC. 174. COAL GASIFICATION. 

21 The Secretary is authorized to provide loan guarantees 

22 for a project to produce energy from a plant using inte23 grated gasification combined cycle technology of at least 400 

24 megawatts in capacity that produces power at competitive 

25 rates in deregulated energy generation markets and that
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1 does not receive any subsidy (direct or indirect) from rate2 payers. 

3 SEC. 175. PETROLEUM COKE GASIFICATION. 

4 The Secretary is authorized to provide loan guarantees 

5 for at least one petroleum coke gasification polygeneration 

6 project. 

7 SEC. 176. OTHER BIOPOWER AND BIOENERGY. 

8 The Secretary shall conduct a program to assist in the 

9 planning, design, and implementation of projects to convert 

10 rice straw, rice hulls, sugarcane bagasse, forest thinnings, 

11 and barley grain into biopower and biofuels.

12 SEC. 177. COAL TECHNOLOGY LOAN. 

13 There are authorized to be appropriated to the Sec14 retary $125,000,000 to provide a loan to the owner of the 

15 experimental plant constructed under United States De16 partment of Energy cooperative agreement number DE–

17 FC22–91PC99544 on such terms and conditions as the Sec18 retary determines, including interest rates and upfront 

19 payments. 

20 SEC. 178. FUEL CELL TEST CENTER. 

21 (a) STUDY.—Not later than 1 year after the date of 

22 enactment of this Act, the Secretary shall transmit to the 

23 Congress a report on the results of a study of the establish24 ment of a test center for next-generation fuel cells at an 

25 institution of higher education that has available a contin-
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1 uous source of hydrogen and access to the electric trans2 mission grid. Such report shall include a conceptual design 

3 for such test center and a projection of the costs of estab4 lishing the test center. 

5 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

6 authorized to be appropriated to the Secretary for carrying 

7 out this section $500,000. 

8 Subtitle H—Hydrogen 

9 SEC. 181. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘George E. Brown, 

11 Jr. and Robert S. Walker Hydrogen Future Act of 2003’’. 

12 SEC. 182. MATSUNAGA ACT AMENDMENT. 

13 The Spark M. Matsunaga Hydrogen Research, Devel14 opment, and Demonstration Act of 1990 (42 U.S.C. 12401 

15 et seq.) is amended by striking sections 102 through 109 

16 and inserting the following: 

17 ‘‘SEC. 102. FINDINGS AND DEFINITIONS. 

18 ‘‘(a) FINDINGS.—Congress finds that—

19 ‘‘(1) the United States is currently dependent on 

20 foreign sources for a majority of its petroleum supply; 

21 ‘‘(2) the Nation’s dependence on foreign petro22 leum is expected to increase in the decades ahead; 

23 ‘‘(3) it is in the national interest to reduce de24 pendence on imported petroleum by accelerating Fed-
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1 eral efforts to partner with the private sector in devel2 oping hydrogen and fuel cell technologies; 

3 ‘‘(4) it is in the national interest to support in4 dustry’s efforts to develop a light duty vehicle fleet 

5 that is free or near free of pollutant emissions and 

6 greenhouse gas emissions, and that helps to reduce the 

7 Nation’s dependence on petroleum in a manner that 

8 maintains the freedom of consumers to purchase the 

9 kinds of vehicles they wish to drive and the freedom 

10 to refuel those vehicles safely and affordably; 

11 ‘‘(5) the development of hydrogen fuel cell vehi12 cles and supporting infrastructure will benefit from 

13 and accelerate the parallel advancement of fuel cells 

14 for stationary power that will enhance the resiliency, 

15 reliability, and environmental performance of the Na16 tion’s electricity infrastructure; 

17 ‘‘(6) fuel cell technology for consumer electronics 

18 and portable power will benefit from, and advance the 

19 development of, hydrogen fuel cell vehicles and sup20 porting infrastructure; 

21 ‘‘(7) there is a need for deployment of bridging 

22 technologies that can contribute to reducing petroleum 

23 demand and decreasing air emissions, including—

24 ‘‘(A) gasoline-electric and diesel-electric hy25 brid drive systems; 
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1 ‘‘(B) advanced combustion engines (includ2 ing clean diesel), electric battery, and power elec3 tronics; and 

4 ‘‘(C) alternative fuels and other tech5 nologies; 

6 ‘‘(8) low-cost hydrogen production, storage, and 

7 delivery facilities are essential to the success of the 

8 FreedomCAR program; and 

9 ‘‘(9) vehicle technology development work should 

10 be performed in a manner that is cognizant of con11 sumer acceptance and marketplace success. 

12 ‘‘(b) DEFINITIONS.—In this Act: 

13 ‘‘(1) The term ‘Advisory Committee’ means the 

14 Hydrogen Technical and Fuel Cell Advisory Com15 mittee established under section 108 of this Act. 

16 ‘‘(2) The term ‘Department’ means the Depart17 ment of Energy. 

18 ‘‘(3) The term ‘fuel cell’ means a device that di19 rectly converts the chemical energy of a fuel and an 

20 oxidant into electricity by an electrochemical process 

21 taking place at separate electrodes in the device. 

22 ‘‘(4) The term ‘FreedomCAR’ is the acronym for 

23 a Department initiative in automotive research and 

24 development entitled ‘Freedom Cooperative Auto25 motive Research’. 
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1 ‘‘(5) The term ‘infrastructure’ means the equip2 ment, systems, or facilities used to produce, distribute, 

3 deliver, or store hydrogen and other advanced clean 

4 fuels. 

5 ‘‘(6) The term ‘light duty vehicle’ means a car 

6 or truck classified by the Department of Transpor7 tation as a Class I or IIA vehicle. 

8 ‘‘(7) The term ‘Secretary’ means the Secretary of 

9 Energy. 

10 ‘‘SEC. 103. PROGRAM. 

11 ‘‘(a) IN GENERAL.—The Secretary shall conduct a re12 search, development, demonstration, and commercial appli13 cation program designed to accelerate the use of hydrogen 

14 and related technologies in stationary and transportation 

15 applications. The goals of the program shall include—

16 ‘‘(1) to enable a decision by automakers not later 

17 than 2015 to offer affordable and technically viable 

18 hydrogen fuel cell vehicles in the mass consumer mar19 ket; 

20 ‘‘(2) to enable production and delivery to con21 sumers of model year 2020 hydrogen fuel cell vehicles 

22 that will have—

23 ‘‘(A) a range of at least three hundred 

24 miles;
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1 ‘‘(B) safety and performance comparable to 

2 vehicle technologies in the market; 

3 ‘‘(C) when compared to light duty vehicles 

4 in model year 2003—

5 ‘‘(i) a fuel economy that is two and 

6 one half times the equivalent fuel economy 

7 of comparable light duty vehicles in model 

8 year 2003; and 

9 ‘‘(ii) zero or near zero emissions of pol10 lutants; and 

11 ‘‘(D) vehicle fuel system crash integrity and 

12 occupant protection; and 

13 ‘‘(3) to enable by 2020 the safe and convenient 

14 commercial production and delivery of hydrogen that 

15 will have—

16 ‘‘(A) the capacity to meet the demand for 

17 stationary and mobile hydrogen fuel cells; 

18 ‘‘(B) safety and performance characteristics 

19 comparable to other fuels; and 

20 ‘‘(C) improved overall efficiency and zero or 

21 near zero emissions when compared to fuels used 

22 in 2003. 

23 ‘‘(b) ACTIVITIES.—The program authorized under this 

24 section shall address—
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1 ‘‘(1) production of hydrogen from diverse energy 

2 sources, including—

3 ‘‘(A) fossil fuels, in conjunction with carbon 

4 capture and sequestration; 

5 ‘‘(B) hydrogen-carrier fuels (including eth6 anol and methanol); 

7 ‘‘(C) renewable energy resources; and 

8 ‘‘(D) nuclear energy; 

9 ‘‘(2) delivery of hydrogen or hydrogen-carrier 

10 fuels, including—

11 ‘‘(A) transmission by pipeline and other 

12 distribution methods; and 

13 ‘‘(B) safe, convenient, and economic refuel14 ing of vehicles either at central refueling stations 

15 or through distributed on-site generation; 

16 ‘‘(3) storage of hydrogen or hydrogen-carrier 

17 fuels, including development of materials for safe and 

18 economic storage in gaseous, liquid, or solid form at 

19 refueling facilities and onboard vehicles; 

20 ‘‘(4) development of safe, durable, affordable, and 

21 efficient fuel cells, including research and development 

22 on fuel-flexible fuel cell power systems, improved 

23 manufacturing processes, high-temperature mem24 branes, cost-effective fuel processing for natural gas, 
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1 fuel cell stack and system reliability, low temperature 

2 operation, and cold start capability; and 

3 ‘‘(5) development, in conjunction with the Na4 tional Institute of Standards and Technology, of nec5 essary codes and standards (including international 

6 codes and standards) and safety practices for the pro7 duction, distribution, storage, and use of hydrogen, 

8 hydrogen-carrier fuels and related products. 

9 ‘‘(c) DEMONSTRATION.—In carrying out the dem10 onstration program under this section, the Secretary shall 

11 fund a limited number of projects and shall, to the extent 

12 practicable—

13 ‘‘(1) select only projects that—

14 ‘‘(A) involve using hydrogen and related 

15 products at facilities or installations that would 

16 exist without the demonstration program, such 

17 as existing office buildings, military bases, vehi18 cle fleet centers, transit bus authorities, or parks; 

19 and 

20 ‘‘(B) depend on reliable power from hydro21 gen to carry out essential activities; and 

22 ‘‘(2) favor projects that—

23 ‘‘(A) lead to the replication of hydrogen 

24 technologies and draw such technologies into the 

25 marketplace; 
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1 ‘‘(B) integrate in a single project both mo2 bile and stationary applications of hydrogen fuel 

3 cells; 

4 ‘‘(C) address the interdependency of demand 

5 for hydrogen fuel cell applications and hydrogen 

6 fuel infrastructure; or 

7 ‘‘(D) raise awareness of hydrogen technology 

8 among the public. 

9 ‘‘(d) MERIT REVIEW.—The Secretary shall carry out 

10 the program under this section using a competitive, merit11 review process and consistent with the generally applicable 

12 Federal laws and regulations governing awards of financial 

13 assistance, contracts, or other agreements. 

14 ‘‘(e) COST SHARING.—(1) For projects carried out 

15 through grants, cooperative agreements, or contracts under 

16 this section, the Secretary shall require a commitment from 

17 non-Federal sources of at least—

18 ‘‘(A) 20 percent of the cost of a research and de19 velopment project; and 

20 ‘‘(B) 50 percent of the cost of a demonstration 

21 project. 

22 ‘‘(2) The Secretary may reduce the cost-sharing re23 quirement under paragraph (1)—

24 ‘‘(A) if the Secretary determines that the project 

25 involves research of a basic or fundamental nature; 
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1 ‘‘(B) if the Secretary determines that a dem2 onstration or commercial application project involves 

3 unusual technological risks; or 

4 ‘‘(C) for technical analyses or other activities 

5 that the Secretary does not expect to result in a mar6 ketable product. 

7 ‘‘(3) The Secretary may consider the size of the non8 Federal share in selecting projects. 

9 ‘‘SEC. 104. FREEDOM CAR. 

10 ‘‘(a) IN GENERAL.—In coordination with the program 

11 under section 103, the Secretary shall carry out a research, 

12 development, demonstration, and commercial application 

13 program on advanced vehicle technologies, to be known as 

14 the FreedomCAR program. 

15 ‘‘(b) ACTIVITIES.—The FreedomCAR program shall 

16 address—

17 ‘‘(1) engine and emission control systems; 

18 ‘‘(2) energy storage, electric propulsion, and hy19 brid systems; 

20 ‘‘(3) automotive materials; 

21 ‘‘(4) clean fuels in addition to hydrogen; and 

22 ‘‘(5) other advanced vehicle technologies. 

23 ‘‘(c) DEMONSTRATION.—Demonstrations involving hy24 drogen shall be conducted as part of the program under sec25 tion 103.
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1 ‘‘(d) MERIT REVIEW AND COST SHARING.—The Sec2 retary shall carry out the FreedomCAR program in compli3 ance with sections 103(d) and (e). 

4 ‘‘SEC. 105. PLAN. 

5 ‘‘Not later than six months after the date of enactment 

6 of the George E. Brown, Jr. and Robert S. Walker Hydro7 gen Future Act of 2003, the Secretary shall transmit to the 

8 Congress a coordinated plan for the programs described in 

9 sections 103 and 104 and any other programs of the De10 partment that are directly related to fuel cells or hydrogen. 

11 The plan shall be consistent with the National Hydrogen 

12 Energy Roadmap published by the Department in October 

13 of 2002 and shall describe, at a minimum—

14 ‘‘(1) the agenda for the programs for the next 

15 five years, including what research, development, 

16 demonstration, and commercial application will be 

17 conducted to carry out each activity enumerated in 

18 sections 103(b) and 104(b); 

19 ‘‘(2) the role national laboratories, institutions of 

20 higher education, small businesses, and other private 

21 sector firms are expected to play in the programs; 

22 ‘‘(3) the technical milestones that will be used to 

23 evaluate the programs for the next five years; 

24 ‘‘(4) the most significant technical hurdles that 

25 stand in the way of achieving the goals described in 
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1 section 103(a), and how the programs will address 

2 those hurdles; and 

3 ‘‘(5) the policy assumptions that are driving the 

4 research agenda, including any assumptions that 

5 would affect the sources of hydrogen or the market6 ability of hydrogen-related products. 

7 ‘‘SEC. 106. EDUCATION, OUTREACH, AND TECHNOLOGY 

8 TRANSFER. 

9 ‘‘(a) IN GENERAL.—The Secretary may carry out pro10 grams and activities for interagency, intergovernmental, 

11 and international education, information exchange, and co12 operation related to hydrogen and hydrogen-related prod13 ucts. 

14 ‘‘(b) TECHNOLOGY TRANSFER.—(1) The Secretary 

15 may conduct a program to transfer technology to the pri16 vate sector under this Act. The purpose of the technology 

17 transfer program is to foster the exchange of generic, non18 proprietary information and technology, developed under 

19 this Act, among industry, academia, and the Federal Gov20 ernment, to help the United States economy attain the eco21 nomic benefits of this information and technology, among 

22 other purposes. 

23 ‘‘(2) The Secretary shall direct the program authorized 

24 by this subsection with the advice and assistance of the Ad25 visory Committee. 
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1 ‘‘SEC. 107. INTERAGENCY TASK FORCE. 

2 ‘‘(a) ESTABLISHMENT.—Not later than 120 days after 

3 the date of enactment of the George E. Brown, Jr. and Rob4 ert S. Walker Hydrogen Future Act of 2003, the President 

5 shall establish an interagency task force, chaired by the Di6 rector of the Office of Science and Technology Policy or his 

7 designee, with representatives from each of the following: 

8 ‘‘(1) The Department of Energy. 

9 ‘‘(2) The Department of Transportation. 

10 ‘‘(3) The Department of State. 

11 ‘‘(4) The Department of Defense. 

12 ‘‘(5) The Department of Commerce (including 

13 the National Institute of Standards and Technology). 

14 ‘‘(6) The Environmental Protection Agency. 

15 ‘‘(7) The National Aeronautics and Space Ad16 ministration. 

17 ‘‘(8) Other Federal agencies as the Director de18 termines appropriate. 

19 ‘‘(b) DUTIES.—

20 ‘‘(1) IMPLEMENTATION.—The interagency task 

21 force shall work toward development of—

22 ‘‘(A) a safe, economical, and environ23 mentally sound hydrogen infrastructure; 

24 ‘‘(B) uniform hydrogen codes, standards, 

25 and safety protocols; 
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1 ‘‘(C) fuel cells in government applications, 

2 including portable, stationary, and transpor3 tation applications; and 

4 ‘‘(D) vehicle hydrogen fuel system integrity 

5 safety performance. 

6 ‘‘(2) ACTIVITIES.—The interagency task force 

7 may organize workshops and conferences, may issue 

8 publications, and may create databases to carry out 

9 its duties. The interagency task force shall—

10 ‘‘(A) foster the exchange of generic, non11 proprietary information and technology among 

12 industry, academia, and government; 

13 ‘‘(B) develop and maintain an inventory 

14 and assessment of hydrogen, fuel cells, and other 

15 advanced technologies, including the commercial 

16 capability of each technology for the economic 

17 and environmentally safe production, distribu18 tion, delivery, storage, and use of hydrogen; 

19 ‘‘(C) integrate technical and other informa20 tion made available as a result of the programs 

21 and activities under this Act; 

22 ‘‘(D) promote the marketplace introduction 

23 of infrastructure for hydrogen-powered fuel cell 

24 vehicles; and 
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1 ‘‘(E) conduct an education program to pro2 vide hydrogen and fuel cell information to poten3 tial end-users in coordination with the program 

4 under section 106. 

5 ‘‘(c) AGENCY COOPERATION.—The heads of all agen6 cies, including those whose agencies are not represented on 

7 the interagency task force, shall cooperate with and furnish 

8 information to the interagency task force and the Depart9 ment. 

10 ‘‘SEC. 108. ADVISORY COMMITTEE. 

11 ‘‘(a) ESTABLISHMENT.—The Hydrogen Technical and 

12 Fuel Cell Advisory Committee shall be established to advise 

13 the Secretary on the programs and activities under this Act. 

14 ‘‘(b) MEMBERSHIP.—

15 ‘‘(1) MEMBERS.—The Secretary shall appoint 

16 not fewer than 12 nor more than 25 members. The 

17 Secretary shall appoint members to represent domes18 tic industry, academia, professional societies, govern19 ment agencies, and financial, environmental, and 

20 other appropriate organizations based on the Sec21 retary’s assessment of the technical and other quali22 fications of committee members and the needs of the 

23 Advisory Committee. 

24 ‘‘(2) TERMS.—The term of a member of the Ad25 visory Committee shall be not more than three years.
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1 The Secretary may appoint members of the Advisory 

2 Committee in a manner that allows the terms of the 

3 members serving at any time to expire at spaced in4 tervals so as to ensure continuity in the functioning 

5 of the Advisory Committee. A member of the Advisory 

6 Committee whose term is expiring may be re7 appointed. 

8 ‘‘(3) CHAIRPERSON.—The Chair of the Advisory 

9 Committee shall be a member of the Advisory Com10 mittee, elected by the members from among their 

11 number. 

12 ‘‘(c) REVIEW.—(1) The Advisory Committee shall re13 view and make recommendations to the Secretary in a bien14 nial report on—

15 ‘‘(A) the implementation of programs and activi16 ties under this Act; and 

17 ‘‘(B) the safety, economical, environmental, and 

18 other consequences of technologies for the production, 

19 distribution, delivery, storage, or use of hydrogen and 

20 fuel cells. 

21 ‘‘(2) The Secretary shall transmit the report under this 

22 subsection to the Congress along with a description of how 

23 the Secretary has implemented or plans to implement the 

24 recommendations, or an explanation of the reasons that a 
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1 recommendation will not be implemented. The report shall 

2 be transmitted along with the President’s budget proposal. 

3 ‘‘(d) ADVISORY COMMITTEE SUPPORT.—The Secretary 

4 shall provide resources necessary in the judgment of the Sec5 retary for the Advisory Committee to carry out its respon6 sibilities under this Act. 

7 ‘‘SEC. 109. EXTERNAL REVIEW. 

8 ‘‘(a) PLAN.—The Secretary shall enter into an ar9 rangement with a competitively selected nongovernmental 

10 entity, such as the National Academy of Sciences, to review 

11 the plan prepared under section 105. The Secretary shall 

12 transmit the review to the Congress along with a plan to 

13 implement the review’s recommendations or an explanation 

14 of the reasons that a recommendation will not be imple15 mented. 

16 ‘‘(b) BIENNIAL REVIEW.—The Secretary shall enter 

17 into an arrangement with a competitively selected non18 governmental entity, such as the National Academy of 

19 Sciences, under which the entity will review the program 

20 under sections 103 and 104 every other year, beginning two 

21 years after the date of enactment of the George E. Brown, 

22 Jr. and Robert S. Walker Hydrogen Future Act of 2003. 

23 The entity shall review the research priorities, technical 

24 milestones, and plans for technology transfer and evaluate 

25 the progress toward achieving them. The Secretary shall 
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1 transmit each review to the Congress along with a plan to 

2 implement the review’s recommendations or an explanation 

3 for the reasons that a recommendation will not be imple4 mented. 

5 ‘‘SEC. 110. MISCELLANEOUS PROVISIONS. 

6 ‘‘(a) DUPLICATION.—The Secretary shall carry out the 

7 activities of this Act in a manner that avoids unnecessary 

8 duplication or displacement of, or competition with private 

9 sector activities. 

10 ‘‘(b) OTHER GOVERNMENTS.—In carrying out this 

11 Act, the Secretary may enter into cost-sharing agreements 

12 with Federal, State, or local governments to demonstrate 

13 applications using hydrogen and fuel cells. 

14 ‘‘(c) REPRESENTATION.—The Department may rep15 resent the United States interests with respect to activities 

16 and programs under this Act, in coordination with the De17 partment of Transportation, the National Institute of 

18 Standards and Technology, and other relevant Federal 

19 agencies, before governments and nongovernmental organi20 zations including—

21 ‘‘(1) other Federal, State, regional, and local 

22 governments and their representatives; 

23 ‘‘(2) industry and its representatives, including 

24 members of the energy and transportation industries; 

25 and 
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1 ‘‘(3) in consultation with the Department of 

2 State, foreign governments and their representatives 

3 including international organizations. 

4 ‘‘(d) REGULATORY AUTHORITY.—Nothing in this Act 

5 shall be construed to alter the regulatory authority of the 

6 Department. 

7 ‘‘SEC. 111. AUTHORIZATION OF APPROPRIATIONS. 

8 ‘‘There are authorized to be appropriated to carry out 

9 this Act, in addition to any amounts made available for 

10 these purposes under other Acts—

11 ‘‘(1) $273,500,000 for fiscal year 2004; 

12 ‘‘(2) $325,000,000 for fiscal year 2005; 

13 ‘‘(3) $375,000,000 for fiscal year 2006; 

14 ‘‘(4) $400,000,000 for fiscal year 2007; and 

15 ‘‘(5) $425,000,000 for fiscal year 2008.’’. 

16 SEC. 183. REPEAL OF HYDROGEN FUTURE ACT OF 1996. 

17 The Hydrogen Future Act of 1996 is repealed. 

18 Subtitle I—Management 

19 SEC. 184. AVAILABILITY OF FUNDS. 

20 Funds authorized to be appropriated to the Depart21 ment under this title shall remain available until expended. 

22 SEC. 185. COST SHARING. 

23 (a) RESEARCH AND DEVELOPMENT.—Except as other24 wise provided in this title, for research and development 

25 programs carried out under this title, the Secretary shall 
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1 require a commitment from non-Federal sources of at least 

2 20 percent of the cost of the project. The Secretary may re3 duce or eliminate the non-Federal requirement under this 

4 subsection if the Secretary determines that the research and 

5 development is of a basic or fundamental nature. 

6 (b) DEMONSTRATION AND COMMERCIAL APPLICA7 TION.—Except as otherwise provided in this title, the Sec8 retary shall require at least 50 percent of the costs directly 

9 and specifically related to any demonstration or commer10 cial application project under this title to be provided from 

11 non-Federal sources. The Secretary may reduce the non12 Federal requirement under this subsection if the Secretary 

13 determines that the reduction is necessary and appropriate 

14 considering the technological risks involved in the project 

15 and is necessary to meet the objectives of this title. 

16 (c) CALCULATION OF AMOUNT.—In calculating the 

17 amount of the non-Federal commitment under subsection 

18 (a) or (b), the Secretary may include personnel, services, 

19 equipment, and other resources. 

20 SEC. 186. MERIT REVIEW OF PROPOSALS. 

21 Awards of funds authorized under this title shall be 

22 made only after an impartial review of the scientific and 

23 technical merit of the proposals for such awards has been 

24 carried out by or for the Department.
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1 SEC. 187. EXTERNAL TECHNICAL REVIEW OF DEPART2 MENTAL PROGRAMS. 

3 (a) NATIONAL ENERGY RESEARCH AND DEVELOPMENT

4 ADVISORY BOARDS.—(1) The Secretary shall establish one 

5 or more advisory boards to review Department research, de6 velopment, demonstration, and commercial application 

7 programs in the following areas: 

8 (A) Energy efficiency. 

9 (B) Renewable energy. 

10 (C) Nuclear energy. 

11 (D) Fossil energy. 

12 (2) The Secretary may designate an existing advisory 

13 board within the Department to fulfill the responsibilities 

14 of an advisory board under this subsection, and may enter 

15 into appropriate arrangements with the National Academy 

16 of Sciences to establish such an advisory board. 

17 (b) OFFICE OF SCIENCE ADVISORY COMMITTEES.—

18 (1) UTILIZATION OF EXISTING COMMITTEES.—

19 The Secretary shall continue to use the scientific pro20 gram advisory committees chartered under the Fed21 eral Advisory Committee Act by the Office of Science 

22 to oversee research and development programs under 

23 that Office. 

24 (2) SCIENCE ADVISORY COMMITTEE.—

25 (A) ESTABLISHMENT.—There shall be in the 

26 Office of Science a Science Advisory Committee 
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1 that includes the chairs of each of the advisory 

2 committees described in paragraph (1). 

3 (B) RESPONSIBILITIES.—The Science Advi4 sory Committee shall—

5 (i) serve as the science advisor to the 

6 Assistant Secretary for Science created 

7 under section 209 of the Department of En8 ergy Organization Act, as added by section 

9 201 of this Act; 

10 (ii) advise the Assistant Secretary with 

11 respect to the well-being and management of 

12 the National Laboratories and single-pur13 pose research facilities; 

14 (iii) advise the Assistant Secretary 

15 with respect to education and workforce 

16 training activities required for effective 

17 short-term and long-term basic and applied 

18 research activities of the Office of Science; 

19 and 

20 (iv) advise the Assistant Secretary 

21 with respect to the well being of the univer22 sity research programs supported by the Of23 fice of Science. 
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1 (c) MEMBERSHIP.—Each advisory board under this 

2 section shall consist of persons with appropriate expertise 

3 representing a diverse range of interests. 

4 (d) MEETINGS AND PURPOSES.—Each advisory board 

5 under this section shall meet at least semi-annually to re6 view and advise on the progress made by the respective re7 search, development, demonstration, and commercial appli8 cation program or programs. The advisory board shall also 

9 review the measurable cost and performance-based goals for 

10 such programs as established under section 3, and the 

11 progress on meeting such goals. 

12 (e) PERIODIC REVIEWS AND ASSESSMENTS.—The Sec13 retary shall enter into appropriate arrangements with the 

14 National Academy of Sciences to conduct periodic reviews 

15 and assessments of the programs authorized by this title, 

16 the measurable cost and performance-based goals for such 

17 programs as established under section 3, if any, and the 

18 progress on meeting such goals. Such reviews and assess19 ments shall be conducted every 5 years, or more often as 

20 the Secretary considers necessary, and the Secretary shall 

21 transmit to the Congress reports containing the results of 

22 all such reviews and assessments. 
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1 SEC. 188. IMPROVED COORDINATION OF TECHNOLOGY 

2 TRANSFER ACTIVITIES. 

3 (a) TECHNOLOGY TRANSFER COORDINATOR.—The 

4 Secretary shall designate a Technology Transfer Coordi5 nator to perform oversight of and policy development for 

6 technology transfer activities at the Department. The Tech7 nology Transfer Coordinator shall coordinate the activities 

8 of the Technology Transfer Working Group, and shall over9 see the expenditure of funds allocated to the Technology 

10 Transfer Working Group, and shall coordinate with each 

11 technology partnership ombudsman appointed under sec12 tion 11 of the Technology Transfer Commercialization Act 

13 of 2000 (42 U.S.C. 7261c). 

14 (b) TECHNOLOGY TRANSFER WORKING GROUP.—The 

15 Secretary shall establish a Technology Transfer Working 

16 Group, which shall consist of representatives of the National 

17 Laboratories and single-purpose research facilities, to— 

18 (1) coordinate technology transfer activities oc19 curring at National Laboratories and single-purpose 

20 research facilities; 

21 (2) exchange information about technology trans22 fer practices, including alternative approaches to res23 olution of disputes involving intellectual property 

24 rights and other technology transfer matters; and 

25 (3) develop and disseminate to the public and 

26 prospective technology partners information about op-
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1 portunities and procedures for technology transfer 

2 with the Department, including those related to alter3 native approaches to resolution of disputes involving 

4 intellectual property rights and other technology 

5 transfer matters.

6 (c) TECHNOLOGY TRANSFER RESPONSIBILITY.—Noth7 ing in this section shall affect the technology transfer re8 sponsibilities of Federal employees under the Stevenson9 Wydler Technology Innovation Act of 1980. 

10 SEC. 189. SMALL BUSINESS ADVOCACY AND ASSISTANCE. 

11 (a) SMALL BUSINESS ADVOCATE.—The Secretary shall 

12 require the Director of each National Laboratory, and may 

13 require the Director of a single-purpose research facility, 

14 to designate a small business advocate to— 

15 (1) increase the participation of small business 

16 concerns, including socially and economically dis17 advantaged small business concerns, in procurement, 

18 collaborative research, technology licensing, and tech19 nology transfer activities conducted by the National 

20 Laboratory or single-purpose research facility; 

21 (2) report to the Director of the National Lab22 oratory or single-purpose research facility on the ac23 tual participation of small business concerns in pro24 curement and collaborative research along with rec-
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1 ommendations, if appropriate, on how to improve 

2 participation; 

3 (3) make available to small business concerns 

4 training, mentoring, and clear, up-to-date informa5 tion on how to participate in the procurement and 

6 collaborative research, including how to submit effec7 tive proposals, and information related to alternative 

8 approaches to resolution of disputes involving intellec9 tual property rights and other technology transfer 

10 matters; 

11 (4) increase the awareness inside the National 

12 Laboratory or single-purpose research facility of the 

13 capabilities and opportunities presented by small 

14 business concerns; and 

15 (5) establish guidelines for the program under 

16 subsection (b) and report on the effectiveness of such 

17 program to the Director of the National Laboratory 

18 or single-purpose research facility. 

19 (b) ESTABLISHMENT OF SMALL BUSINESS ASSIST20 ANCE PROGRAM.—The Secretary shall require the Director 

21 of each National Laboratory, and may require the Director 

22 of a single-purpose research facility, to establish a program 

23 to provide small business concerns— 

24 (1) assistance directed at making them more ef25 fective and efficient subcontractors or suppliers to the
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1 National Laboratory or single-purpose research facil2 ity; or 

3 (2) general technical assistance, the cost of which 

4 shall not exceed $10,000 per instance of assistance, to 

5 improve the small business concern’s products or serv6 ices. 

7 (c) USE OF FUNDS.—None of the funds expended 

8 under subsection (b) may be used for direct grants to the 

9 small business concerns. 

10 (d) DEFINITIONS.—In this section: 

11 (1) SMALL BUSINESS CONCERN.—The term 

12 ‘‘small business concern’’ has the meaning given such 

13 term in section 3 of the Small Business Act (15 

14 U.S.C. 632). 

15 (2) SOCIALLY AND ECONOMICALLY DISADVAN16 TAGED SMALL BUSINESS CONCERNS.—The term ‘‘so17 cially and economically disadvantaged small business 

18 concerns’’ has the meaning given such term in section 

19 8(a)(4) of the Small Business Act (15 U.S.C. 

20 637(a)(4)). 

21 SEC. 190. MOBILITY OF SCIENTIFIC AND TECHNICAL PER22 SONNEL. 

23 Not later than 2 years after the date of enactment of 

24 this section, the Secretary shall transmit a report to the 

25 Congress identifying any policies or procedures of a con-
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1 tractor operating a National Laboratory or single-purpose 

2 research facility that create disincentives to the temporary 

3 transfer of scientific and technical personnel among the con4 tractor-operated National Laboratories or contractor-oper5 ated single-purpose research facilities.

6 SEC. 191. NATIONAL ACADEMY OF SCIENCES REPORT. 

7 Within 90 days after the date of enactment of this Act, 

8 the Secretary shall enter into an arrangement with the Na9 tional Academy of Sciences for the Academy to—

10 (1) conduct studies on—

11 (A) the obstacles to accelerating the commer12 cial application of energy technology; and 

13 (B) the adequacy of Department policies 

14 and procedures for, and oversight of, technology 

15 transfer-related disputes between contractors of 

16 the Department and the private sector; and 

17 (2) report to the Congress on recommendations 

18 developed as a result of the studies. 

19 SEC. 192. OUTREACH. 

20 The Secretary shall ensure that each program author21 ized by this title includes an outreach component to provide 

22 information, as appropriate, to manufacturers, consumers, 

23 engineers, architects, builders, energy service companies, in24 stitutions of higher education, facility planners and man25 agers, State and local governments, and other entities. 
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1 SEC. 193. LIMITS ON USE OF FUNDS. 

2 (a) COMPETITIVE PROCEDURE REQUIREMENT.—None 

3 of the funds authorized to be appropriated to the Secretary 

4 by this title may be used to award a management and oper5 ating contract for a nonmilitary energy laboratory of the 

6 Department unless such contract is competitively awarded 

7 or the Secretary grants, on a case-by-case basis, a waiver 

8 to allow for such a deviation. The Secretary may not dele9 gate the authority to grant such a waiver. 

10 (b) CONGRESSIONAL NOTICE.—At least 2 months be11 fore a contract award for which the Secretary intends to 

12 grant such a waiver, the Secretary shall submit to the Con13 gress a report notifying the Congress of the waiver and set14 ting forth the reasons for the waiver. 

15 SEC. 194. REPROGRAMMING. 

16 (a) DISTRIBUTION REPORT.—Not later than 60 days 

17 after the date of the enactment of an Act appropriating 

18 amounts authorized under this title, the Secretary shall 

19 transmit to the appropriate authorizing committees of the 

20 Congress a report explaining how such amounts will be dis21 tributed among the authorizations contained in this title. 

22 (b) PROHIBITION.—(1) No amount identified under 

23 subsection (a) shall be reprogrammed if such reprogram24 ming would result in an obligation which changes an indi25 vidual distribution required to be reported under subsection 

26 (a) by more than 5 percent unless the Secretary has trans-
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1 mitted to the appropriate authorizing committees of the 

2 Congress a report described in subsection (c) and a period 

3 of 30 days has elapsed after such committees receive the re4 port. 

5 (2) In the computation of the 30-day period described 

6 in paragraph (1), there shall be excluded any day on which 

7 either House of Congress is not in session because of an 

8 adjournment of more than 3 days to a day certain. 

9 (c) REPROGRAMMING REPORT.—A report referred to 

10 in subsection (b)(1) shall contain a full and complete state11 ment of the action proposed to be taken and the facts and 

12 circumstances relied on in support of the proposed action. 

13 SEC. 195. CONSTRUCTION WITH OTHER LAWS. 

14 Except as otherwise provided in this title, the Sec15 retary shall carry out the research, development, demonstra16 tion, and commercial application programs, projects, and 

17 activities authorized by this title in accordance with the ap18 plicable provisions of the Atomic Energy Act of 1954 (42 

19 U.S.C. et seq.), the Federal Nonnuclear Research and Devel20 opment Act of 1974 (42 U.S.C. 5901 et seq.), the Energy 

21 Policy Act of 1992 (42 U.S.C. 13201 et seq.), the Stevenson22 Wydler Technology Innovation Act of 1980 (15 U.S.C. 3701 

23 et seq.), chapter 18 of title 35, United States Code (com24 monly referred to as the Bayh-Dole Act), and any other Act 
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1 under which the Secretary is authorized to carry out such 

2 activities.

3 SEC. 196. UNIVERSITY COLLABORATION. 

4 Not later than 2 years after the date of enactment of 

5 this Act, the Secretary shall transmit to the Congress a re6 port that examines the feasibility of promoting collabora7 tions between large institutions of higher education and 

8 small institutions of higher education through grants, con9 tracts, and cooperative agreements made by the Secretary 

10 for energy projects. The Secretary shall also consider pro11 viding incentives for the inclusion of small institutions of 

12 higher education, including minority-serving institutions, 

13 in energy research grants, contracts, and cooperative agree14 ments. 

15 SEC. 197. FEDERAL LABORATORY EDUCATIONAL PARTNERS. 

16 (a) DISTRIBUTION OF ROYALTIES RECEIVED BY FED17 ERAL AGENCIES.—Section 14(a)(1)(B)(v) of the Stevenson18 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

19 3710c(a)(1)(B)(v)), is amended to read as follows: 

20 ‘‘(v) for scientific research and development 

21 and for educational assistance and other pur22 poses consistent with the missions and objectives 

23 of the Department of Energy and the labora24 tory.’’.
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1 (b) COOPERATIVE RESEARCH AND DEVELOPMENT

2 AGREEMENTS.—Section 12(b)(5)(C) of the Stevenson3 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

4 3710a(b)(5)(C)) is amended to read as follows: 

5 ‘‘(C) for scientific research and development and 

6 for educational assistance consistent with the missions 

7 and objectives of the Department of Energy and the 

8 laboratory.’’.

9 SEC. 198. INTERAGENCY COOPERATION. 

10 The Secretary shall enter into discussions with the Ad11 ministrator of the National Aeronautics and Space Admin12 istration with the goal of reaching an interagency working 

13 agreement between the 2 agencies that would make the Na14 tional Aeronautics and Space Administration’s expertise in 

15 energy, gained from its existing and planned programs, 

16 more readily available to the relevant research, develop17 ment, demonstration, and commercial applications pro18 grams of the Department. Technologies to be discussed 

19 should include the National Aeronautics and Space Admin20 istration’s modeling, research, development, testing, and 

21 evaluation of new energy technologies, including solar, 

22 wind, fuel cells, and hydrogen storage and distribution.
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1 TITLE II—DEPARTMENT OF 

2 ENERGY MANAGEMENT 

3 SEC. 201. IMPROVED COORDINATION AND MANAGEMENT OF 

4 CIVILIAN SCIENCE AND TECHNOLOGY PRO5 GRAMS. 

6 (a) RECONFIGURATION OF POSITION OF DIRECTOR OF

7 THE OFFICE OF SCIENCE.—Section 209 of the Department 

8 of Energy Organization Act (41 U.S.C. 7139) is amended 

9 to read as follows: 

10 ‘‘OFFICE OF SCIENCE

11 ‘‘SEC. 209. (a) There shall be within the Department 

12 an Office of Science, to be headed by an Assistant Secretary 

13 of Science, who shall be appointed by the President, by and 

14 with the advice and consent of the Senate, and who shall 

15 be compensated at the rate provided for level IV of the Exec16 utive Schedule under section 5315 of title 5, United States 

17 Code. 

18 ‘‘(b) The Assistant Secretary of Science shall be in ad19 dition to the Assistant Secretaries provided for under sec20 tion 203 of this Act. 

21 ‘‘(c) It shall be the duty and responsibility of the As22 sistant Secretary of Science to carry out the fundamental 

23 science and engineering research functions of the Depart24 ment, including the responsibility for policy and manage25 ment of such research, as well as other functions vested in 
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1 the Secretary which he may assign to the Assistant Sec2 retary.’’. 

3 (b) ADDITIONAL ASSISTANT SECRETARY POSITION TO

4 ENABLE IMPROVED MANAGEMENT OF NUCLEAR ENERGY

5 ISSUES.—(1) Section 203(a) of the Department of Energy 

6 Organization Act (42 U.S.C. 7133(a)) is amended by strik7 ing ‘‘There shall be in the Department six Assistant Secre8 taries’’ and inserting ‘‘Except as provided in section 209, 

9 there shall be in the Department seven Assistant Secre10 taries’’. 

11 (2) It is the sense of the Congress that the leadership 

12 for departmental missions in nuclear energy should be at 

13 the Assistant Secretary level. 

14 (c) TECHNICAL AND CONFORMING AMENDMENTS.—(1) 

15 Section 5315 of title 5, United States Code, is amended 

16 by—

17 (A) striking ‘‘Director, Office of Science, Depart18 ment of Energy.’’; and 

19 (B) striking ‘‘Assistant Secretaries of Energy 

20 (6)’’ and inserting ‘‘Assistant Secretaries of Energy 

21 (8)’’.

22 (2) The table of contents for the Department of Energy 

23 Organization Act (42 U.S.C. 7101 note) is amended— 

24 (A) by striking ‘‘Section 209’’ and inserting 

25 ‘‘Sec. 209’’; 
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1 (B) by striking ‘‘213.’’ and inserting ‘‘Sec. 213.’’; 

2 (C) by striking ‘‘214.’’ and inserting ‘‘Sec. 214.’’; 

3 (D) by striking ‘‘215.’’ and inserting ‘‘Sec. 

4 215.’’; and 

5 (E) by striking ‘‘216.’’ and inserting ‘‘Sec. 216.’’. 

6 SEC. 202. REPORT ON EQUAL EMPLOYMENT OPPORTUNITY 

7 PRACTICES. 

8 The Secretary shall transmit to the Congress a bien9 nial report on the equal employment opportunity practices 

10 at the nonmilitary energy laboratories. Such report shall 

11 include—

12 (1) a thorough review of each nonmilitary energy 

13 laboratory contractor’s equal employment opportunity 

14 policies; 

15 (2) a statistical report on complaints and their 

16 disposition in the laboratories; 

17 (3) the role equal employment opportunity prac18 tices play in selecting the contractor for each labora19 tory, and in establishing the fee that is paid to the 

20 contractor for each laboratory; 

21 (4) a summary of disciplinary actions by either 

22 the Department or the relevant contractors for each 

23 laboratory; and 
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1 (5) a summary of efforts by the Department and 

2 the relevant contractors for each laboratory to attract 

3 women and minorities to the laboratories. 

4 SEC. 203. EXTERNAL REGULATION OF DEPARTMENT OF EN5 ERGY. 

6 (a) ELIMINATION OF DEPARTMENT OF ENERGY AU7 THORITY.—Effective 2 years after the date of enactment of 

8 this Act, the Department shall have no regulatory or en9 forcement authority with respect to nuclear safety and occu10 pational safety and health responsibilities assumed by the 

11 Nuclear Regulatory Commission under subsection (b) or by 

12 the Occupational Safety and Health Administration under 

13 subsection (c) at any nonmilitary energy laboratory owned 

14 or operated by the Department. 

15 (b) NUCLEAR REGULATORY COMMISSION AUTHOR16 ITY.—

17 (1) NUCLEAR SAFETY REGULATORY AND EN18 FORCEMENT RESPONSIBILITIES.—Effective 2 years 

19 after the date of enactment of this Act, the Nuclear 

20 Regulatory Commission shall assume the nuclear safe21 ty regulatory and enforcement responsibilities of the 

22 Department under the Atomic Energy Act of 1954 

23 with regard to nonmilitary energy laboratories owned 

24 or operated by the Department.
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1 (2) LICENSED ENTITIES.—For the purposes of 

2 carrying out at nonmilitary energy laboratories 

3 owned or operated by the Department regulatory and 

4 enforcement responsibilities described in paragraph 

5 (1), the Nuclear Regulatory Commission may regu6 late, through licensing, certification, or other appro7 priate means, the Department’s contractors. 

8 (3) DECOMMISSIONING.—A contractor operating 

9 a nonmilitary energy laboratory owned by the De10 partment shall not be responsible for the costs of de11 commissioning that facility. No enforcement action 

12 may be taken against such contractor for any viola13 tion of Nuclear Regulatory Commission decommis14 sioning requirements, if such violation is the result of 

15 a failure of the Department to authorize or fund de16 commissioning activities. The Nuclear Regulatory 

17 Commission and the Department shall, not later than 

18 1 year after the date of enactment of this Act, enter 

19 into a memorandum of understanding establishing 

20 decommissioning procedures and requirements for 

21 nonmilitary energy laboratories owned or operated by 

22 the Department. 

23 (4) ACCELERATORS.—Notwithstanding the provi24 sions of the Atomic Energy Act of 1954 (42 U.S.C. 

25 2011 et. seq.), effective 2 years after the date of enact-
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1 ment of this Act, the Nuclear Regulatory Commission 

2 shall have exclusive regulatory authority over accel3 erators, other electronic sources of radiation not as4 signed to the Commission as of the date of enactment 

5 of this Act, accelerator-produced radioisotopes, and 

6 naturally occurring radioactive materials at non7 military energy laboratories, consistent with the au8 thorities granted the Nuclear Regulatory Commission 

9 in the Atomic Energy Act of 1954. Until such time 

10 as the Commission has completed a rulemaking for 

11 the foregoing equipment and radioisotopes, non12 military energy laboratories shall be required to meet 

13 the requirements stipulated in a license for the facil14 ity. 

15 (5) ADMINISTRATION.—The responsibilities as16 sumed by the Nuclear Regulatory Commission under 

17 this subsection shall be administered by the Nuclear 

18 Regulatory Commission, not by States. 

19 (6) JUDICIAL REVIEW.—Section 189 b. of the 

20 Atomic Energy Act of 1954 (42 U.S.C. 2239(b)) is 

21 amended by adding the following paragraph after 

22 paragraph (4): 

23 ‘‘(5) Any final order or regulation of the Com24 mission establishing standards to govern nonmilitary 

25 energy laboratories owned or operated by the Depart-
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1 ment of Energy that is issued to implement the Com2 mission’s responsibilities under section 202 of the En3 ergy Research, Development, Demonstration, and 

4 Commercial Application Act of 2003, and any final 

5 determination of the Commission relating to whether 

6 a nonmilitary energy laboratory owned or operated 

7 by the Department is in compliance with such stand8 ards and all applicable Commission regulations or or9 ders.’’. 

10 (7) EMPLOYEE PROTECTION.—Any Department 

11 contractor operating a nonmilitary energy laboratory 

12 that is regulated by the Nuclear Regulatory Commis13 sion under this section shall be subject to section 211 

14 of the Energy Reorganization Act of 1974 (42 U.S.C. 

15 5851) to the same extent as any other employer sub16 ject to such section 211. 

17 (8) CONFLICT OF INTEREST.—Section 170A of 

18 the Atomic Energy Act of 1954 (42 U.S.C. 2210a) ap19 plies to contracts, agreements, or other arrangements 

20 of the Nuclear Regulatory Commission proposed or 

21 entered into pursuant to its responsibilities assumed 

22 under this subsection. 

23 (c) OCCUPATIONAL SAFETY AND HEALTH.—

24 (1) OSHA JURISDICTION.—Notwithstanding sec25 tion 4(b)(1) of the Occupational Safety and Health 
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1 Act of 1970 (29 U.S.C. 653(b)(1)), effective 2 years 

2 after the date of enactment of this Act, the Occupa3 tional Safety and Health Administration shall as4 sume the exclusive regulatory and enforcement respon5 sibilities of the Department relating to matters cov6 ered by the Occupational Safety and Health Act of 

7 1970 with regard to all nonmilitary energy labora8 tories owned or operated by the Department, except as 

9 provided in paragraph (2). The responsibilities as10 sumed by the Occupational Safety and Health Ad11 ministration under this subsection shall be adminis12 tered by the Occupational Safety and Health Admin13 istration, not by States. Any Department contractor 

14 operating such a laboratory shall, with respect to 

15 matters relating to occupational safety and health, be 

16 considered to be an employer for purposes of the Oc17 cupational Safety and Health Act of 1970. 

18 (2) REGULATION OF HAZARDS CONTAINING RADI19 OLOGICAL AND NON-RADIOLOGICAL COMPONENT.—If a 

20 hazard at a nonmilitary energy laboratory owned or 

21 operated by the Department presents a risk of occupa22 tional exposure and contains both a radiological and 

23 non-radiological component, the Occupational Safety 

24 and Health Administration and the Nuclear Regu25 latory Commission shall, effective 2 years after the 
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1 date of enactment of this Act, share regulatory and 

2 enforcement responsibilities with respect to the hazard 

3 in accordance with the memorandum of under4 standing entered into pursuant to subsection (d). 

5 (d) MEMORANDUM OF UNDERSTANDING.—The Nuclear 

6 Regulatory Commission and the Occupational Safety and 

7 Health Administration shall, not later than 1 year after 

8 the date of enactment of this Act, enter into and transmit 

9 to the Congress a memorandum of understanding to govern 

10 the exercise of their respective authorities over nuclear safe11 ty and occupational safety and health at nonmilitary en12 ergy laboratories owned or operated by the Department. 

13 (e) CIVIL PENALTIES.—The Department’s contractor 

14 operating a nonmilitary energy laboratory owned or oper15 ated by the Department shall not be liable for civil penalties 

16 under the Atomic Energy Act of 1954 or the Occupational 

17 Safety and Health Act of 1970 for any actions taken before 

18 the date of transfer of regulatory authority under this sec19 tion, pursuant to the instructions of a Federal agency in 

20 preparation for the transfer of regulatory and enforcement 

21 responsibilities required by this section. 

22 (f) INDEMNIFICATION.—The Secretary shall continue 

23 to indemnify nonmilitary energy laboratories owned or op24 erated by the Department in accordance with the provisions 

25 of section 170 d. of the Atomic Energy Act of 1954.
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1 (g) DEPARTMENT OF ENERGY REPORTING REQUIRE2 MENT.—Not later than 18 months after the date of enact3 ment of this Act, the Secretary shall transmit to the Con4 gress a plan for the termination of the Department’s regu5 latory and enforcement responsibilities for nonmilitary en6 ergy laboratories owned or operated by the Department re7 quired by this section. The report shall include—

8 (1) a detailed transition plan, drafted in coordi9 nation with the Nuclear Regulatory Commission and 

10 the Occupational Safety and Health Administration, 

11 giving the schedule for termination of self-regulation 

12 authority as outlined in subsection (a), including the 

13 activities to be coordinated with the Nuclear Regu14 latory Commission and the Occupational Safety and 

15 Health Administration; 

16 (2) a description of any issues remaining to be 

17 resolved with the Nuclear Regulatory Commission, the 

18 Occupational Safety and Health Administration, or 

19 other external regulators, and a timetable for resolv20 ing such issues by the authority transfer date estab21 lished under this section; and 

22 (3) an estimate of—

23 (A) the annual cost of administering and 

24 implementing self-regulation of the nuclear safe25 ty and occupational safety and health respon-
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1 sibilities described in subsections (b) and (c) at 

2 nonmilitary energy laboratories owned or oper3 ated by the Department; 

4 (B) the number of Federal and contractor 

5 employees administering and implementing such 

6 self-regulation; and 

7 (C) the extent and schedule by which the 

8 Department and the staffs at its nonmilitary en9 ergy laboratories will be reduced as a result of 

10 implementation of this section. 

11 (h) GENERAL ACCOUNTING OFFICE REPORTING RE12 QUIREMENT.—The Comptroller General of the United 

13 States shall periodically report to the Congress on the 

14 progress made in implementing this section. The Comp15 troller General shall provide a report not later than 20 

16 months after the date of enactment of this Act on the De17 partment’s transition plan, and not later than 26 months 

18 after the date of enactment of this Act on the implementa19 tion of Nuclear Regulatory Commission and Occupational 

20 Safety and Health Administration regulations in the non21 military energy laboratories. 
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1 TITLE III—CLEAN SCHOOL 

2 BUSES 

3 SEC. 301. ESTABLISHMENT OF PILOT PROGRAM. 

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

5 consultation with the Administrator of the Environmental 

6 Protection Agency, shall establish a pilot program for 

7 awarding grants on a competitive basis to eligible entities 

8 for the demonstration and commercial application of alter9 native fuel school buses and ultra-low sulfur diesel school 

10 buses. 

11 (b) REQUIREMENTS.—Not later than 3 months after 

12 the date of the enactment of this Act, the Secretary shall 

13 establish and publish in the Federal register grant require14 ments on eligibility for assistance, and on implementation 

15 of the program established under subsection (a), including 

16 certification requirements to ensure compliance with this 

17 title. 

18 (c) SOLICITATION.—Not later than 6 months after the 

19 date of the enactment of this Act, the Secretary shall solicit 

20 proposals for grants under this section. 

21 (d) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

22 under this section only—

23 (1) to a local or State governmental entity re24 sponsible for providing school bus service to one or 
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1 more public school systems or responsible for the pur2 chase of school buses; or 

3 (2) to a contracting entity that provides school 

4 bus service to one or more public school systems, if the 

5 grant application is submitted jointly with the school 

6 system or systems which the buses will serve. 

7 (e) TYPES OF GRANTS.—

8 (1) IN GENERAL.—Grants under this section 

9 shall be for the demonstration and commercial appli10 cation of technologies to facilitate the use of alter11 native fuel school buses and ultra-low sulfur diesel 

12 school buses in lieu of buses manufactured before 

13 model year 1977 and diesel-powered buses manufac14 tured before model year 1991. 

15 (2) NO ECONOMIC BENEFIT.—Other than the re16 ceipt of the grant, a recipient of a grant under this 

17 section may not receive any economic benefit in con18 nection with the receipt of the grant. 

19 (3) PRIORITY OF GRANT APPLICATIONS.—The 

20 Secretary shall give priority to awarding grants to 

21 applicants who can demonstrate the use of alternative 

22 fuel buses and ultra-low sulfur diesel school buses in 

23 lieu of buses manufactured before model year 1977. 

24 (f) CONDITIONS OF GRANT.—A grant provided under 

25 this section shall include the following conditions: 
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1 (1) All buses acquired with funds provided under 

2 the grant shall be operated as part of the school bus 

3 fleet for which the grant was made for a minimum 

4 of 5 years. 

5 (2) Funds provided under the grant may only be 

6 used—

7 (A) to pay the cost, except as provided in 

8 paragraph (3), of new alternative fuel school 

9 buses or ultra-low sulfur diesel school buses, in10 cluding State taxes and contract fees; and 

11 (B) to provide—

12 (i) up to 10 percent of the price of the 

13 alternative fuel buses acquired, for necessary 

14 alternative fuel infrastructure if the infra15 structure will only be available to the grant 

16 recipient; and 

17 (ii) up to 15 percent of the price of the 

18 alternative fuel buses acquired, for necessary 

19 alternative fuel infrastructure if the infra20 structure will be available to the grant re21 cipient and to other bus fleets. 

22 (3) The grant recipient shall be required to pro23 vide at least the lesser of 15 percent of the total cost 

24 of each bus received or $15,000 per bus.
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1 (4) In the case of a grant recipient receiving a 

2 grant to demonstrate ultra-low sulfur diesel school 

3 buses, the grant recipient shall be required to provide 

4 documentation to the satisfaction of the Secretary 

5 that diesel fuel containing sulfur at not more than 15 

6 parts per million is available for carrying out the 

7 purposes of the grant, and a commitment by the ap8 plicant to use such fuel in carrying out the purposes 

9 of the grant. 

10 (g) BUSES.—Funding under a grant made under this 

11 section may be used to demonstrate the use only of new al12 ternative fuel school buses or ultra-low sulfur diesel school 

13 buses—

14 (1) with a gross vehicle weight of greater than 

15 14,000 pounds; 

16 (2) that are powered by a heavy duty engine; 

17 (3) that, in the case of alternative fuel school 

18 buses manufactured in model years 2003 through 

19 2006, emit not more than 1.8 grams per brake horse20 power-hour of nonmethane hydrocarbons and oxides of 

21 nitrogen and .01 grams per brake horsepower-hour of 

22 particulate matter; and 

23 (4) that, in the case of ultra-low sulfur diesel 

24 school buses, emit not more than—
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1 (A) for buses manufactured in model year 

2 2003, 3.0 grams per brake horsepower-hour of ox3 ides of nitrogen and .01 grams per brake horse4 power-hour of particulate matter; and 

5 (B) for buses manufactured in model years 

6 2004 through 2006, 2.5 grams per brake horse7 power-hour of nonmethane hydrocarbons and ox8 ides of nitrogen and .01 grams per brake horse9 power-hour of particulate matter, 

10 except that under no circumstances shall buses be ac11 quired under this section that emit nonmethane hy12 drocarbons, oxides of nitrogen, or particulate matter 

13 at a rate greater than the best performing technology 

14 of the same class of ultra-low sulfur diesel school buses 

15 commercially available at the time the grant is made. 

16 (h) DEPLOYMENT AND DISTRIBUTION.—The Secretary 

17 shall seek to the maximum extent practicable to achieve na18 tionwide deployment of alternative fuel school buses and 

19 ultra-low sulfur diesel school buses through the program 

20 under this section, and shall ensure a broad geographic dis21 tribution of grant awards, with a goal of no State receiving 

22 more than 10 percent of the grant funding made available 

23 under this section for a fiscal year. 

24 (i) LIMIT ON FUNDING.—The Secretary shall provide 

25 not less than 20 percent and not more than 25 percent of 
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1 the grant funding made available under this section for any 

2 fiscal year for the acquisition of ultra-low sulfur diesel 

3 school buses. 

4 (j) ANNUAL REPORT.—Not later than January 31 of 

5 each year, the Secretary of Energy shall provide a report 

6 evaluating implementation of the program under this title 

7 to the Congress. Such report shall include the total number 

8 of grant applications received, the number and types of al9 ternative fuel buses and ultra-low sulfur diesel school buses 

10 requested in grant applications, a list of grants awarded 

11 and the criteria used to select the grant recipients, certified 

12 engine emission levels of all buses purchased under the pro13 gram, and any other information the Secretary considers 

14 appropriate. 

15 (k) DEFINITIONS.—For purposes of this section—

16 (1) the term ‘‘alternative fuel school bus’’ means 

17 a bus powered substantially by electricity (including 

18 electricity supplied by a fuel cell), or by liquefied nat19 ural gas, compressed natural gas, liquefied petroleum 

20 gas, hydrogen, propane, or methanol or ethanol at no 

21 less than 85 percent by volume; and 

22 (2) the term ‘‘ultra-low sulfur diesel school bus’’ 

23 means a school bus powered by diesel fuel which con24 tains sulfur at not more than 15 parts per million. 
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1 SEC. 302. FUEL CELL BUS DEVELOPMENT AND DEMONSTRA2 TION PROGRAM. 

3 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

4 shall establish a program for entering into cooperative 

5 agreements with private sector fuel cell bus developers for 

6 the development of fuel cell-powered school buses, and subse7 quently with not less than 2 units of local government using 

8 natural gas-powered school buses and such private sector 

9 fuel cell bus developers to demonstrate the use of fuel cell10 powered school buses. 

11 (b) COST SHARING.—The non-Federal contribution for 

12 activities funded under this section shall be not less than—

13 (1) 20 percent for fuel infrastructure develop14 ment activities; and 

15 (2) 50 percent for demonstration activities and 

16 for development activities not described in paragraph 

17 (1). 

18 (c) FUNDING.—No more than $25,000,000 of the 

19 amounts authorized under section 304 may be used for car20 rying out this section for the period encompassing fiscal 

21 years 2004 through 2006. 

22 (d) REPORTS TO CONGRESS.—Not later than 3 years 

23 after the date of the enactment of this Act, and not later 

24 than October 1, 2006, the Secretary shall transmit to the 

25 Congress a report that—
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1 (1) evaluates the process of converting natural 

2 gas infrastructure to accommodate fuel cell-powered 

3 school buses; and 

4 (2) assesses the results of the development and 

5 demonstration program under this section. 

6 SEC. 303. DIESEL RETROFIT PROGRAM. 

7 (a) ESTABLISHMENT.—The Administrator of the En8 vironmental Protection Agency and the Secretary shall es9 tablish a pilot program for awarding grants on a competi10 tive basis to eligible recipients for the demonstration and 

11 commercial application of retrofit technologies for diesel 

12 school buses. 

13 (b) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

14 under this section only—

15 (1) to a local or State governmental entity re16 sponsible for providing school bus service to one or 

17 more public school systems; or 

18 (2) to a contracting entity that provides school 

19 bus service to one or more public school systems, if the 

20 grant application is submitted jointly with the school 

21 system or systems which the buses will serve. 

22 (c) CONDITIONS OF GRANT.—A grant provided under 

23 this section may be used only to demonstrate the use of ret24 rofit emissions-control technology on diesel buses that—

25 (1) operate on ultra-low sulfur diesel fuel; and
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1 (2) were manufactured in model year 1991 or 

2 later. 

3 (d) VERIFICATION.—Not later than 3 months after the 

4 date of enactment of this Act, the Administrator shall pub5 lish in the Federal Register procedures to verify—

6 (1) the retrofit emissions-control technology to be 

7 demonstrated; and 

8 (2) that buses on which retrofit emissions-control 

9 technology are to be demonstrated will operate on die10 sel fuel containing not more than 15 parts per mil11 lion of sulfur. 

12 SEC. 304. AUTHORIZATION OF APPROPRIATIONS. 

13 (a) SCHOOL BUS GRANTS.—There are authorized to 

14 be appropriated to the Secretary for carrying out this title, 

15 to remain available until expended—

16 (1) $90,000,000 for fiscal year 2004; 

17 (2) $100,000,000 for fiscal year 2005; and 

18 (3) $110,000,000 for fiscal year 2006. 

19 (b) RETROFIT GRANTS.—There are authorized to be 

20 appropriated to the Administrator of the Environmental 

21 Protection Agency and the Secretary such sums as may be 

22 necessary for carrying out section 303. 
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1 TITLE IV—ALTERNATIVE 

2 FUELED AND ADVANCED VE3 HICLES 

4 SEC. 401. DEFINITIONS. 

5 For the purposes of this title, the following definitions 

6 apply: 

7 (1) ALTERNATIVE FUELED VEHICLE.—The term 

8 ‘‘alternative fueled vehicle’’ means a vehicle propelled 

9 solely on an alternative fuel as defined in section 301 

10 of the Energy Policy Act (42 U.S.C. 13211), except 

11 the term does not include any vehicle that the Sec12 retary determines, by rule, does not yield substantial 

13 environmental benefits over a vehicle operating solely 

14 on gasoline or diesel derived from fossil fuels. 

15 (2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

16 vehicle’’ means a vehicle propelled by an electric 

17 motor powered by a fuel cell system that converts 

18 chemical energy into electricity by combining oxygen 

19 (from air) with hydrogen fuel that is stored on the ve20 hicle or is produced onboard by reformation of a hy21 drocarbon fuel. Such fuel cell system may or may not 

22 include the use of auxiliary energy storage systems to 

23 enhance vehicle performance. 

24 (3) HYBRID VEHICLE.—The term ‘‘hybrid vehi25 cle’’ means a medium or heavy duty vehicle that is 
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1 more efficient than its non-hybrid counterpart and 

2 that draws propulsion energy from both an internal 

3 combustion engine using any combustible fuel and an 

4 onboard energy storage device. 

5 (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 

6 term ‘‘neighborhood electric vehicle’’ means a motor 

7 vehicle capable of traveling at speeds of 25 miles per 

8 hour that is—

9 (A) a low-speed vehicle, as such term is de10 fined in section 571.3(b) of title 49, Code of Fed11 eral Regulations; 

12 (B) a zero-emission vehicle, as such term is 

13 defined in section 86.1702–99 of title 40, Code of 

14 Federal Regulations; and 

15 (C) otherwise lawful to use on local streets. 

16 (5) PILOT PROGRAM.—The term ‘‘pilot program’’ 

17 means the competitive grant program established 

18 under section 402. 

19 (6) ULTRA-LOW SULFUR DIESEL VEHICLE.—The 

20 term ‘‘ultra-low sulfur diesel vehicle’’ means a vehicle 

21 manufactured in model years 2003 through 2006 

22 powered by a heavy-duty diesel engine that—

23 (A) is fueled by diesel fuel which contains 

24 sulfur at not more than 15 parts per million; 

25 and 
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1 (B) emits not more than the lesser of—

2 (i) for vehicles manufactured in—

3 (I) model year 2003, 3.0 grams 

4 per brake horsepower-hour of oxides of 

5 nitrogen and .01 grams per brake 

6 horsepower-hour of particulate matter; 

7 and 

8 (II) model years 2004 through 

9 2006, 2.5 grams per brake horsepower10 hour of nonmethane hydrocarbons and 

11 oxides of nitrogen and .01 grams per 

12 brake horsepower-hour of particulate 

13 matter; or 

14 (ii) the emissions of nonmethane hy15 drocarbons, oxides of nitrogen, and particu16 late matter of the best performing tech17 nology of ultra-low sulfur diesel vehicles of 

18 the same class and application that are 

19 commercially available. 

20 SEC. 402. PILOT PROGRAM. 

21 (a) ESTABLISHMENT.—The Secretary shall establish a 

22 competitive grant pilot program, to be administered 

23 through the Clean Cities Program of the Department of En24 ergy, to provide not more than 15 geographically dispersed 

25 project grants to State governments, local governments, or 
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1 metropolitan transportation authorities to carry out a 

2 project or projects for the purposes described in subsection 

3 (b). 

4 (b) GRANT PURPOSES.—Grants under this section 

5 may be used for the following purposes: 

6 (1) The acquisition of alternative fueled vehicles 

7 or fuel cell vehicles, including—

8 (A) passenger vehicles including neighbor9 hood electric vehicles; and 

10 (B) motorized two-wheel bicycles, scooters, 

11 or other vehicles for use by law enforcement per12 sonnel or other State or local government or met13 ropolitan transportation authority employees. 

14 (2) The acquisition of alternative fueled vehicles, 

15 hybrid vehicles, or fuel cell vehicles, including—

16 (A) buses used for public transportation or 

17 transportation to and from schools; 

18 (B) delivery vehicles for goods or services; 

19 and 

20 (C) ground support vehicles at public air21 ports, including vehicles to carry baggage or 

22 push airplanes away from terminal gates. 

23 (3) The acquisition of ultra-low sulfur diesel ve24 hicles.
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1 (4) Infrastructure necessary to directly support 

2 an alternative fueled vehicle or fuel cell vehicle project 

3 funded by the grant, including fueling and other sup4 port equipment. 

5 (5) Operation and maintenance of vehicles, in6 frastructure, and equipment acquired as part of a 

7 project funded by the grant. 

8 (c) APPLICATIONS.—

9 (1) REQUIREMENTS.—The Secretary shall issue 

10 requirements for applying for grants under the pilot 

11 program. At a minimum, the Secretary shall require 

12 that applications be submitted by the head of a State 

13 or local government or a metropolitan transportation 

14 authority, or any combination thereof, and a reg15 istered participant in the Clean Cities Program of the 

16 Department of Energy, and shall include—

17 (A) at least one project to enable passengers 

18 or goods to be transferred directly from vehicles 

19 acquired under this section to a local, regional, 

20 or national transportation system; 

21 (B) a description of the projects proposed in 

22 the application, including how they meet the re23 quirements of this title;

24 (C) an estimate of the ridership or degree of 

25 use of the projects proposed in the application; 
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1 (D) an estimate of the air pollution emis2 sions reduced and fossil fuel displaced as a result 

3 of the projects proposed in the application, and 

4 a plan to collect and disseminate environmental 

5 data, related to the projects to be funded under 

6 the grant, over the life of the projects; 

7 (E) a description of how the projects pro8 posed in the application will be sustainable 

9 without Federal assistance after the completion 

10 of the term of the grant; 

11 (F) a complete description of the costs of 

12 each project proposed in the application, includ13 ing acquisition, construction, operation, and 

14 maintenance costs over the expected life of the 

15 project; 

16 (G) a description of which costs of the 

17 projects proposed in the application will be sup18 ported by Federal assistance under this title; and 

19 (H) documentation to the satisfaction of the 

20 Secretary that diesel fuel containing sulfur at 

21 not more than 15 parts per million is available 

22 for carrying out the projects, and a commitment 

23 by the applicant to use such fuel in carrying out 

24 the projects. 
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1 (2) PARTNERS.—An applicant under paragraph 

2 (1) may carry out projects under the pilot program 

3 in partnership with public and private entities. 

4 (d) SELECTION CRITERIA.—In evaluating applica5 tions under the pilot program, the Secretary shall consider 

6 each applicant’s previous experience with similar projects 

7 and shall give priority consideration to applications that—

8 (1) are most likely to maximize protection of the 

9 environment; 

10 (2) demonstrate the greatest commitment on the 

11 part of the applicant to ensure funding for the pro12 posed projects and the greatest likelihood that each 

13 project proposed in the application will be main14 tained or expanded after Federal assistance under 

15 this title is completed; and 

16 (3) exceed the minimum requirements of sub17 section (c)(1)(A). 

18 (e) PILOT PROJECT REQUIREMENTS.—

19 (1) MAXIMUM AMOUNT.—The Secretary shall not 

20 provide more than $20,000,000 in Federal assistance 

21 under the pilot program to any applicant. 

22 (2) COST SHARING.—The Secretary shall not 

23 provide more than 50 percent of the cost, incurred 

24 during the period of the grant, of any project under 

25 the pilot program. 
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1 (3) MAXIMUM PERIOD OF GRANTS.—The Sec2 retary shall not fund any applicant under the pilot 

3 program for more than 5 years. 

4 (4) DEPLOYMENT AND DISTRIBUTION.—The Sec5 retary shall seek to the maximum extent practicable 

6 to ensure a broad geographic distribution of project 

7 sites. 

8 (5) TRANSFER OF INFORMATION AND KNOWL9 EDGE.—The Secretary shall establish mechanisms to 

10 ensure that the information and knowledge gained by 

11 participants in the pilot program are transferred 

12 among the pilot program participants and to other 

13 interested parties, including other applicants that 

14 submitted applications. 

15 (f) SCHEDULE.—

16 (1) PUBLICATION.—Not later than 3 months 

17 after the date of the enactment of this Act, the Sec18 retary shall publish in the Federal Register, Com19 merce Business Daily, and elsewhere as appropriate, 

20 a request for applications to undertake projects under 

21 the pilot program. Applications shall be due within 6 

22 months of the publication of the notice. 

23 (2) SELECTION.—Not later than 6 months after 

24 the date by which applications for grants are due, the 

25 Secretary shall select by competitive, peer review all 
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1 applications for projects to be awarded a grant under 

2 the pilot program. 

3 (g) LIMIT ON FUNDING.—The Secretary shall provide 

4 not less than 20 percent and not more than 25 percent of 

5 the grant funding made available under this section for the 

6 acquisition of ultra-low sulfur diesel vehicles. 

7 SEC. 403. REPORTS TO CONGRESS. 

8 (a) INITIAL REPORT.—Not later than 2 months after 

9 the date grants are awarded under the pilot program, the 

10 Secretary shall transmit to the Congress a report con11 taining—

12 (1) an identification of the grant recipients and 

13 a description of the projects to be funded; 

14 (2) an identification of other applicants that 

15 submitted applications for the pilot program; and 

16 (3) a description of the mechanisms used by the 

17 Secretary to ensure that the information and knowl18 edge gained by participants in the pilot program are 

19 transferred among the pilot program participants 

20 and to other interested parties, including other appli21 cants that submitted applications.

22 (b) EVALUATION.—Not later than 3 years after the 

23 date of the enactment of this Act, and annually thereafter 

24 until the pilot program ends, the Secretary shall transmit 

25 to the Congress a report containing an evaluation of the
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1 effectiveness of the pilot program, including an assessment 

2 of the benefits to the environment derived from the projects 

3 included in the pilot program as well as an estimate of the 

4 potential benefits to the environment to be derived from 

5 widespread application of alternative fueled vehicles and 

6 ultra-low sulfur diesel vehicles. 

7 SEC. 404. FUEL CELL TRANSIT BUS DEMONSTRATION. 

8 The Secretary shall establish a transit bus demonstra9 tion program to make competitive, merit-based awards for 

10 five-year projects to demonstrate not more than 12 fuel cell 

11 transit buses (and necessary infrastructure) in three geo12 graphically dispersed localities. In selecting projects under 

13 this section, the Secretary shall give preference to projects 

14 that are most likely to mitigate congestion and improve air 

15 quality. 

16 SEC. 405. AUTHORIZATION OF APPROPRIATIONS. 

17 There are authorized to be appropriated to the Sec18 retary $200,000,000 to carry out this title, to remain avail19 able until expended.

20 TITLE V—CLEAN COAL 

21 SEC. 501. AUTHORIZATION OF APPROPRIATIONS. 

22 (a) CLEAN COAL POWER INITIATIVE.—Except as pro23 vided in subsection (b), there are authorized to be appro24 priated to the Secretary to carry out the activities author-
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1 ized by this title $200,000,000 for each of the fiscal years 

2 2003 through 2011, to remain available until expended. 

3 (b) LIMIT ON USE OF FUNDS.—Notwithstanding sub4 section (a), no funds may be used to carry out the activities 

5 authorized by this title after September 30, 2005, unless the 

6 Secretary has transmitted to the Committee on Energy and 

7 Commerce and the Committee on Science of the House of 

8 Representatives, and to the Senate, the report required by 

9 this subsection and one month has elapsed since that trans10 mission. The report shall include, with respect to subsection 

11 (a), a 10-year plan containing—

12 (1) a detailed assessment of whether the aggre13 gate funding levels provided under subsection (a) are 

14 the appropriate funding levels for that program; 

15 (2) a detailed description of how proposals will 

16 be solicited and evaluated, including a list of all ac17 tivities expected to be undertaken; 

18 (3) a detailed list of technical milestones for each 

19 coal and related technology that will be pursued; and 

20 (4) a detailed description of how the program 

21 will avoid problems enumerated in General Account22 ing Office reports on the Clean Coal Technology Pro23 gram, including problems that have resulted in 

24 unspent funds and projects that failed either finan25 cially or scientifically. 
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1 (c) APPLICABILITY.—Subsection (b) shall not apply to 

2 any project begun before September 30, 2005. 

3 SEC. 502. PROJECT CRITERIA. 

4 (a) IN GENERAL.—The Secretary shall not provide 

5 funding under this title for any project that does not ad6 vance efficiency, environmental performance, and cost com7 petitiveness well beyond the level of technologies that are 

8 in commercial service or have been demonstrated on a scale 

9 that the Secretary determines is sufficient to demonstrate 

10 that commercial service is viable as of the date of the enact11 ment of this Act. 

12 (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER

13 INITIATIVE.—

14 (1) GASIFICATION.—(A) In allocating the funds 

15 made available under section 501(a), the Secretary 

16 shall ensure that at least 80 percent of the funds are 

17 used only for projects on coal-based gasification tech18 nologies, including gasification combined cycle, gasifi19 cation fuel cells, gasification coproduction, and hy20 brid gasification/combustion. 

21 (B) The Secretary shall set technical milestones 

22 specifying emissions levels that coal gasification 

23 projects must be designed to and reasonably expected 

24 to achieve. The milestones shall get more restrictive 

25 through the life of the program. The milestones shall 
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1 be designed to achieve by 2020 coal gasification 

2 projects able—

3 (i) to remove 99 percent of sulfur dioxide; 

4 (ii) to emit no more than .05 lbs of NOx per 

5 million BTU; 

6 (iii) to achieve substantial reductions in 

7 mercury emissions; and 

8 (iv) to achieve a thermal efficiency of— 

9 (I) 60 percent for coal of more than 

10 9,000 Btu; 

11 (II) 59 percent for coal of 7,000 to 

12 9,000 Btu; and 

13 (III) 50 percent for coal of less than 

14 7,000 Btu. 

15 (C) Beginning in fiscal year 2009, the Secretary 

16 may use funds under this paragraph for a project 

17 that does not meet the criteria described in subpara18 graph (A), but only if—

19 (i) the Secretary finds that the project is 

20 likely to result in greater emissions reductions 

21 than would a project funded pursuant to sub22 paragraph (A); 

23 (ii) the Secretary finds that the project 

24 would permit (but not necessarily include) the 

25 activities described in paragraph (5); and
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1 (iii) the Secretary notifies the Congress of 

2 the project at the time when it is approved. 

3 (2) OTHER PROJECTS.—For projects not de4 scribed in paragraph (1), the Secretary shall set tech5 nical milestones specifying emissions levels that the 

6 projects must be designed to and reasonably expected 

7 to achieve. The milestones shall get more restrictive 

8 through the life of the program. The milestones shall 

9 be designed to achieve by 2010 projects able—

10 (A) to remove 97 percent of sulfur dioxide; 

11 (B) to emit no more than .08 lbs of NOx per 

12 million BTU; 

13 (C) to achieve substantial reductions in 

14 mercury emissions; and 

15 (D) to achieve a thermal efficiency of—

16 (i) 45 percent for coal of more than 

17 9,000 Btu;

18 (ii) 44 percent for coal of 7,000 to 

19 9,000 Btu; and 

20 (iii) 40 percent for coal of less than 

21 7,000 Btu. 

22 (3) CONSULTATION.—Before setting the technical 

23 milestones under paragraphs (1)(B) and (2), the Sec24 retary shall consult with the Administrator of the En25 vironmental Protection Agency and interested enti-
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1 ties, including coal producers, industries using coal, 

2 organizations to promote coal or advanced coal tech3 nologies, environmental organizations, and organiza4 tions representing workers. 

5 (4) EXISTING UNITS.—In the case of projects at 

6 existing units, in lieu of the thermal efficiency re7 quirements set forth in paragraph (1)(B)(iv) and 

8 (2)(D), the projects shall be designed to achieve an 

9 overall thermal design efficiency improvement com10 pared to the efficiency of the unit as operated, of not 

11 less than— 

12 (A) 7 percent for coal of more than 9,000 

13 Btu; 

14 (B) 6 percent for coal of 7,000 to 9,000 Btu; 

15 or 

16 (C) 4 percent for coal of less than 7,000 

17 Btu. 

18 (5) PERMITTED USES.—In allocating funds 

19 made available under section 501, the Secretary may 

20 fund projects that include, as part of the project, the 

21 separation and capture of carbon dioxide. 

22 (c) FINANCIAL CRITERIA.—The Secretary shall not 

23 provide a funding award under this title unless the recipi24 ent has documented to the satisfaction of the Secretary 

25 that—
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1 (1) the award recipient is financially viable 

2 without the receipt of additional Federal funding; 

3 (2) the recipient will provide sufficient informa4 tion to the Secretary for the Secretary to ensure that 

5 the award funds are spent efficiently and effectively; 

6 and 

7 (3) a market exists for the technology being dem8 onstrated or applied, as evidenced by statements of 

9 interest in writing from potential purchasers of the 

10 technology. 

11 (d) FINANCIAL ASSISTANCE.—The Secretary shall pro12 vide financial assistance to projects that meet the require13 ments of subsections (a), (b), and (c) and are likely to—

14 (1) achieve overall cost reductions in the utiliza15 tion of coal to generate useful forms of energy; 

16 (2) improve the competitiveness of coal among 

17 various forms of energy in order to maintain a diver18 sity of fuel choices in the United States to meet elec19 tricity generation requirements; and 

20 (3) demonstrate methods and equipment that are 

21 applicable to 25 percent of the electricity generating 

22 facilities that use coal as the primary feedstock as of 

23 the date of the enactment of this Act. 
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1 (e) FEDERAL SHARE.—The Federal share of the cost 

2 of a coal or related technology project funded by the Sec3 retary shall not exceed 50 percent. 

4 (f) APPLICABILITY.—No technology, or level of emis5 sion reduction, shall be treated as adequately demonstrated 

6 for purposes of section 111 of the Clean Air Act, achievable 

7 for purposes of section 169 of that Act, or achievable in 

8 practice for purposes of section 171 of that Act solely by 

9 reason of the use of such technology, or the achievement of 

10 such emission reduction, by one or more facilities receiving 

11 assistance under this title. 

12 SEC. 503. REPORT. 

13 Not later than 1 year after the date of the enactment 

14 of this Act, and once every 2 years thereafter through 2011, 

15 the Secretary, in consultation with other appropriate Fed16 eral agencies, shall transmit to the Committee on Energy 

17 and Commerce and the Committee on Science of the House 

18 of Representatives, and to the Senate, a report describing—

19 (1) the technical milestones set forth in section 

20 502 and how those milestones ensure progress toward 

21 meeting the requirements of subsections (b)(1)(B) and 

22 (b)(2) of section 502; and 

23 (2) the status of projects funded under this title. 
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1 SEC. 504. CLEAN COAL CENTERS OF EXCELLENCE. 

2 As part of the program authorized in section 501, the 

3 Secretary shall award competitive, merit-based grants to 

4 universities for the establishment of Centers of Excellence 

5 for Energy Systems of the Future. The Secretary shall pro6 vide grants to universities that can show the greatest poten7 tial for advancing new clean coal technologies.

Union Calendar No. 94

108TH CONGRESS 

1ST SESSION H. R. 238

[Report No. 108–128, Part I] 

A BILL

To provide for Federal energy research, development, demonstration, and commercial application 

activities, and for other purposes. 

JUNE 27, 2003

Committee on Resources discharged; committed to the 

Committee of the Whole House on the State of the Union and ordered to be printed