I 

108TH CONGRESS 

1ST SESSION H. R. 1644

To enhance energy conservation and research and development, to provide 

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

and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 7, 2003

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

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

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

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

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

the jurisdiction of the committee concerned 

A BILL

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

supply for the American people, and for other purposes.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

4 (a) SHORT TITLE.—This Act may be cited as the 

5 ‘‘Energy Policy Act of 2003’’. 

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

7 this Act is as follows:
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Sec. 1. Short title; table of contents. 

TITLE I—ENERGY CONSERVATION 

Subtitle A—Federal Leadership in Energy Conservation 

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

Sec. 1002. Energy management requirements. 

Sec. 1003. Energy use measurement and accountability. 

Sec. 1004. Federal building performance standards. 

Sec. 1005. Procurement of energy efficient products. 

Sec. 1006. Energy savings performance contracts. 

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

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

Sec. 1009. Advanced Building Efficiency Testbed. 

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

projects involving procurement of cement or concrete. 

Subtitle B—Energy Assistance and State Programs 

Sec. 1021. LIHEAP and weatherization assistance. 

Sec. 1022. State energy programs. 

Sec. 1023. Energy efficient appliance rebate programs. 

Sec. 1024. Energy efficient public buildings. 

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

Subtitle C—Energy Efficient Products 

Sec. 1041. Energy Star program. 

Sec. 1042. Consumer education on energy efficiency benefits of air conditioning, heating, and ventilation maintenance. 

Sec. 1043. Additional definitions. 

Sec. 1044. Additional test procedures. 

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

Sec. 1046. Energy labeling. 

Sec. 1047. Study of energy efficiency standards. 

TITLE II—OIL AND GAS 

Subtitle A—Alaska Natural Gas Pipeline 

Sec. 2001. Short title. 

Sec. 2002. Findings and purposes. 

Sec. 2003. Definitions. 

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

Sec. 2005. Environmental reviews. 

Sec. 2006. Pipeline expansion. 

Sec. 2007. Federal Coordinator. 

Sec. 2008. Judicial review. 

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

Sec. 2010. Study of alternative means of construction. 

Sec. 2011. Clarification of ANGTA status and authorities. 

Sec. 2012. Sense of Congress. 

Sec. 2013. Participation of small business concerns. 

Sec. 2014. Alaska pipeline construction training program. 
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Subtitle B—Strategic Petroleum Reserve 

Sec. 2101. Full capacity of Strategic Petroleum Reserve. 

Sec. 2102. Strategic Petroleum Reserve expansion. 

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

and other energy programs. 

Subtitle C—Hydraulic Fracturing 

Sec. 2201. Hydraulic fracturing. 

Subtitle D—Unproven Oil and Natural Gas Reserves Recovery Program 

Sec. 2301. Program. 

Sec. 2302. Eligible reservoirs. 

Sec. 2303. Focus areas. 

Sec. 2304. Limitation on location of activities. 

Sec. 2305. Program administration. 

Sec. 2306. Advisory Committee. 

Sec. 2307. Limits on participation. 

Sec. 2308. Payments to Federal Government. 

Sec. 2309. Authorization of appropriations. 

Sec. 2310. Public availability of project results and methodologies. 

Sec. 2311. Sunset. 

Sec. 2312. Definitions. 

Subtitle E—Miscellaneous 

Sec. 2401. Appeals relating to pipeline construction projects. 

Sec. 2402. Natural gas market data transparency. 

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

TITLE III—HYDROELECTRIC RELICENSING 

Subtitle A—Alternative Conditions 

Sec. 3001. Alternative conditions and fishways. 

Subtitle B—Additional Hydropower 

Sec. 3201. Hydroelectric production incentives. 

Sec. 3202. Hydroelectric efficiency improvement. 

Sec. 3203. Small hydroelectric power projects. 

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

TITLE IV—NUCLEAR MATTERS 

Subtitle A—Price-Anderson Act Amendments 

Sec. 4001. Short title. 

Sec. 4002. Extension of indemnification authority. 

Sec. 4003. Maximum assessment. 

Sec. 4004. Department of Energy liability limit. 

Sec. 4005. Incidents outside the United States. 

Sec. 4006. Reports. 

Sec. 4007. Inflation adjustment. 

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

Sec. 4009. Applicability. 
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Sec. 4010. Prohibition on assumption by United States Government of liability 

for certain foreign accidents. 

Sec. 4011. Secure transfer of nuclear materials. 

Sec. 4012. Nuclear facility threats. 

Sec. 4013. Unreasonable risk consultation. 

Sec. 4014. Financial accountability. 

Sec. 4015. Civil penalties. 

Subtitle B—Miscellaneous Matters 

Sec. 4021. Licenses. 

Sec. 4022. Nuclear Regulatory Commission meetings. 

Sec. 4023. NRC training program. 

Sec. 4024. Cost recovery from Government agencies. 

Sec. 4025. Elimination of pension offset. 

Sec. 4026. Carrying of firearms by licensee employees. 

Sec. 4027. Unauthorized introduction of dangerous weapons. 

Sec. 4028. Sabotage of nuclear facilities or fuel. 

Sec. 4029. Cooperative research and development and special demonstration 

projects for the uranium mining industry. 

Sec. 4030. Uranium sales. 

Sec. 4031. Medical isotope production. 

Sec. 4032. Highly enriched uranium diversion threat report. 

Sec. 4033. Whistleblower protection. 

TITLE V—VEHICLES AND FUELS 

Subtitle A—Energy Policy Act Amendments 

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

Sec. 5012. Credit for alternative fuel infrastructure. 

Sec. 5013. Alternative fueled vehicle report. 

Sec. 5014. Allocation of incremental costs. 

Subtitle B—FreedomCAR and Hydrogen Fuel Program 

Sec. 5021. Short title. 

Sec. 5022. Findings, purpose, and definitions. 

Sec. 5023. Plan; report. 

Sec. 5024. Public-private partnership. 

Sec. 5025. Deployment. 

Sec. 5026. Assessment and transfer. 

Sec. 5027. Interagency task force. 

Sec. 5028. Advisory Committee. 

Sec. 5029. Authorization of appropriations. 

Sec. 5030. Fuel cell program at National Parks. 

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

Subtitle C—Clean School Buses 

Sec. 5031. Establishment of pilot program. 

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

Sec. 5033. Authorization of appropriations. 

Subtitle D—Advanced Vehicles 

Sec. 5041. Definitions. 

Sec. 5042. Pilot program. 
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Sec. 5043. Reports to Congress. 

Sec. 5044. Authorization of appropriations. 

Subtitle E—Hydrogen Fuel Cell Heavy-Duty Vehicles 

Sec. 5051. Definition. 

Sec. 5052. Findings. 

Sec. 5053. Hydrogen fuel cell buses. 

Sec. 5054. Authorization of appropriations. 

Subtitle F—Miscellaneous 

Sec. 5061. Railroad efficiency. 

Sec. 5062. Mobile emission reductions trading and crediting. 

Sec. 5063. Idle reduction technologies. 

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

Sec. 5065. Diesel fueled vehicles. 

Sec. 5066. Hybrid vehicles. 

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

TITLE VI—DOE PROGRAMS 

Sec. 6001. Purposes. 

Sec. 6002. Definitions. 

Subtitle A—Energy Efficiency 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6011. Energy efficiency. 

PART 2—LIGHTING SYSTEMS

Sec. 6021. Next Generation Lighting Initiative. 

PART 3—VEHICLES

Sec. 6031. Definitions. 

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

Subtitle B—Distributed Energy and Electric Energy Systems 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6201. Distributed energy and electric energy systems. 

PART 2—DISTRIBUTED POWER

Sec. 6221. Strategy. 

Sec. 6222. High power density industry program. 

Sec. 6223. Micro-cogeneration energy technology. 

PART 3—TRANSMISSION SYSTEMS

Sec. 6231. Transmission infrastructure systems.

Subtitle C—Renewable Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS
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Sec. 6301. Renewable energy. 

PART 2—BIOENERGY

Sec. 6321. Bioenergy programs. 

Subtitle D—Nuclear Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6411. Nuclear energy. 

PART 2—NUCLEAR ENERGY RESEARCH PROGRAMS

Sec. 6421. Nuclear energy research programs. 

PART 3—ADVANCED FUEL RECYCLING

Sec. 6431. Advanced fuel recycling program. 

PART 4—UNIVERSITY PROGRAMS

Sec. 6441. University nuclear science and engineering support. 

Subtitle E—Fossil Energy 

PART 1—AUTHORIZATION OF APPROPRIATIONS

Sec. 6501. Fossil energy. 

PART 2—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND

OTHER PETROLEUM RESOURCES

Sec. 6521. Program authority. 

Sec. 6522. Ultra-deepwater program. 

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

Sec. 6524. Additional requirements for awards. 

Sec. 6525. Advisory committees. 

Sec. 6526. Limits on participation. 

Sec. 6527. Fund. 

Sec. 6528. Sunset. 

Sec. 6529. Definitions. 

Subtitle F—Miscellaneous 

Sec. 6601. Waste reduction and use of alternatives. 

Sec. 6602. Coal gasification. 

Sec. 6603. Petroleum coke gasification. 

Sec. 6604. Other biopower and bioenergy. 

Sec. 6605. Technology transfer. 

Sec. 6606. Limitation on legal fee reimbursement. 

Sec. 6607. Complex well technology testing facility. 

Sec. 6608. Total integrated thermal systems. 

Sec. 6609. Oil bypass filtration technology. 

TITLE VII—ELECTRICITY 

Subtitle A—Transmission Capacity 

Sec. 7011. Transmission infrastructure improvement rulemaking. 
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Sec. 7012. Siting of interstate electrical transmission facilities. 

Subtitle B—Transmission Operation 

Sec. 7021. Open access transmission by certain utilities. 

Sec. 7022. Regional transmission organizations. 

Sec. 7023. Native load. 

Subtitle C—Reliability 

Sec. 7031. Electric reliability standards. 

Subtitle D—PUHCA Amendments 

Sec. 7041. Short title. 

Sec. 7042. Definitions. 

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

Sec. 7044. Federal access to books and records. 

Sec. 7045. State access to books and records. 

Sec. 7046. Exemption authority. 

Sec. 7047. Affiliate transactions. 

Sec. 7048. Applicability. 

Sec. 7049. Effect on other regulations. 

Sec. 7050. Enforcement. 

Sec. 7051. Savings provisions. 

Sec. 7052. Implementation. 

Sec. 7053. Transfer of resources. 

Sec. 7054. Effective date. 

Sec. 7055. Authorization of appropriations. 

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

Subtitle E—PURPA Amendments 

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

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

Sec. 7063. Smart metering. 

Subtitle F—Renewable Energy 

Sec. 7071. Net metering. 

Sec. 7072. Renewable energy production incentive. 

Sec. 7073. Renewable energy on Federal lands. 

Sec. 7074. Assessment of renewable energy resources. 

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

Enforcement 

Sec. 7081. Market transparency rules. 

Sec. 7082. Prohibition on round trip trading. 

Sec. 7083. Conforming changes. 

Sec. 7084. Enforcement. 

Subtitle H—Consumer Protections 

Sec. 7091. Refund effective date. 

Sec. 7092. Jurisdiction over interstate sales. 

Sec. 7093. Consumer privacy. 
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Sec. 7094. Unfair trade practices. 

Subtitle I—Merger Review Reform and Accountability 

Sec. 7101. Merger review reform and accountability. 

Subtitle J—Study of Economic Dispatch 

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

TITLE VIII—COAL 

Sec. 8001. Authorization of appropriations. 

Sec. 8002. Project criteria. 

Sec. 8003. Report. 

Sec. 8004. Clean coal centers of excellence. 

TITLE IX—MOTOR FUELS 

Subtitle A—General Provisions 

Sec. 9101. Renewable content of motor vehicle fuel. 

Sec. 9102. Fuels safe harbor. 

Sec. 9103. Findings and MTBE transition assistance. 

Sec. 9104. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 9105. Analyses of motor vehicle fuel changes. 

Sec. 9106. Data collection. 

Sec. 9107. Fuel system requirements harmonization study. 

Subtitle B—MTBE Cleanup 

Sec. 9201. Funding for MTBE contamination. 

TITLE X—AUTOMOBILE EFFICIENCY 

Sec. 10001. Authorization of appropriations for implementation and enforcement of fuel economy standards. 

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

TITLE XI—PREVENTING THE MISUSE OF NUCLEAR MATERIALS 

AND TECHNOLOGY 

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

TITLE XII—ADDITIONAL PROVISIONS 

Sec. 12001. Transmission technologies.
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1 TITLE I—ENERGY 

2 CONSERVATION 

3 Subtitle A—Federal Leadership in 

4 Energy Conservation 

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

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

8 Energy Conservation Policy Act is amended by adding at 

9 the end: 

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

11 CONGRESSIONAL BUILDINGS. 

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

13 ‘‘(1) shall develop, update, and implement a 

14 cost-effective energy conservation and management 

15 plan (referred to in this section as the ‘plan’) for all 

16 facilities administered by the Congress (referred to 

17 in this section as ‘congressional buildings’) to meet 

18 the energy performance requirements for Federal 

19 buildings established under section 543(a)(1); and 

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

21 later than 180 days after the date of enactment of 

22 this section. 

23 ‘‘(b) PLAN REQUIREMENTS.—The plan shall in24 clude— 
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1 ‘‘(1) a description of the life cycle cost analysis 

2 used to determine the cost-effectiveness of proposed 

3 energy efficiency projects; 

4 ‘‘(2) a schedule of energy surveys to ensure 

5 complete surveys of all congressional buildings every 

6 5 years to determine the cost and payback period of 

7 energy and water conservation measures; 

8 ‘‘(3) a strategy for installation of life cycle cost9 effective energy and water conservation measures; 

10 ‘‘(4) the results of a study of the costs and ben11 efits of installation of submetering in congressional 

12 buildings; and 

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

14 for each Member and employing authority of Con15 gress that detail simple, cost-effective methods to 

16 save energy and taxpayer dollars in the workplace. 

17 ‘‘(c) ANNUAL REPORT.—The Architect shall submit 

18 to Congress annually a report on congressional energy 

19 management and conservation programs required under 

20 this section that describes in detail— 

21 ‘‘(1) energy expenditures and savings estimates 

22 for each facility; 

23 ‘‘(2) energy management and conservation 

24 projects; and
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1 ‘‘(3) future priorities to ensure compliance with 

2 this section.’’. 

3 (b) TABLE OF CONTENTS AMENDMENT.—The table 

4 of contents of the National Energy Conservation Policy 

5 Act is amended by adding at the end of the items relating 

6 to part 3 of title V the following new item:

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

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

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

9 (d) ENERGY INFRASTRUCTURE.—The Architect of 

10 the Capitol, building on the Master Plan Study completed 

11 in July 2000, shall commission a study to evaluate the 

12 energy infrastructure of the Capital Complex to determine 

13 how the infrastructure could be augmented to become 

14 more energy efficient, using unconventional and renewable 

15 energy resources, in a way that would enable the Complex 

16 to have reliable utility service in the event of power fluc17 tuations, shortages, or outages. 

18 (e) AUTHORIZATION.—There are authorized to be ap19 propriated to the Architect of the Capitol to carry out sub20 section (d), not more than $2,000,000 for fiscal years 

21 after the enactment of this Act. 

22 SEC. 1002. ENERGY MANAGEMENT REQUIREMENTS. 

23 (a) ENERGY REDUCTION GOALS.—

24 (1) AMENDMENT.—Section 543(a)(1) of the 

25 National Energy Conservation Policy Act (42 U.S.C. 
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1 8253(a)(1)) is amended by striking ‘‘its Federal 

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

3 end and inserting ‘‘the Federal buildings of the 

4 agency (including each industrial or laboratory facil5 ity) so that the energy consumption per gross square 

6 foot of the Federal buildings of the agency in fiscal 

7 years 2004 through 2013 is reduced, as compared 

8 with the energy consumption per gross square foot 

9 of the Federal buildings of the agency in fiscal year 

10 2001, by the percentage specified in the following 

11 table:

‘‘Fiscal Year Percentage reduction 

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

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

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

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

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

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

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

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

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

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

12 (2) REPORTING BASELINE.—The energy reduc13 tion goals and baseline established in paragraph (1) 

14 of section 543(a) of the National Energy Conserva15 tion Policy Act, as amended by paragraph (1) of this 

16 subsection, supersede all previous goals and base17 lines under such paragraph, and related reporting 

18 requirements. 

19 (b) REVIEW AND REVISION OF ENERGY PERFORM20 ANCE REQUIREMENT.—Section 543(a) of the National 
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1 Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 

2 further amended by adding at the end the following: 

3 ‘‘(3) Not later than December 31, 2012, the Sec4 retary shall review the results of the implementation of 

5 the energy performance requirement established under 

6 paragraph (1) and submit to Congress recommendations 

7 concerning energy performance requirements for fiscal 

8 years 2014 through 2023.’’. 

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

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

11 is amended by striking ‘‘An agency may exclude’’ and all 

12 that follows through the end and inserting ‘‘(A) An agency 

13 may exclude, from the energy performance requirement 

14 for a fiscal year established under subsection (a) and the 

15 energy management requirement established under sub16 section (b), any Federal building or collection of Federal 

17 buildings, if the head of the agency finds that—

18 ‘‘(i) compliance with those requirements would 

19 be impracticable; 

20 ‘‘(ii) the agency has completed and submitted 

21 all federally required energy management reports; 

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

23 the energy efficiency requirements of this Act, the 

24 Energy Policy Act of 1992, Executive Orders, and 

25 other Federal law; and 
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1 ‘‘(iv) the agency has implemented all prac2 ticable, life cycle cost-effective projects with respect 

3 to the Federal building or collection of Federal 

4 buildings to be excluded. 

5 ‘‘(B) A finding of impracticability under subpara6 graph (A)(i) shall be based on— 

7 ‘‘(i) the energy intensiveness of activities car8 ried out in the Federal building or collection of Fed9 eral buildings; or 

10 ‘‘(ii) the fact that the Federal building or col11 lection of Federal buildings is used in the perform12 ance of a national security function.’’. 

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

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

15 8253(c)(2)) is amended— 

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

17 inserting ‘‘standards for exclusion’’; and 

18 (2) by striking ‘‘a finding of impracticability’’ 

19 and inserting ‘‘the exclusion’’. 

20 (e) CRITERIA.—Section 543(c) of the National En21 ergy Conservation Policy Act (42 U.S.C. 8253(c)) is fur22 ther amended by adding at the end the following: 

23 ‘‘(3) Not later than 180 days after the date of enact24 ment of this paragraph, the Secretary shall issue guide-
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1 lines that establish criteria for exclusions under paragraph 

2 (1).’’. 

3 (f) RETENTION OF ENERGY SAVINGS.—Section 546 

4 of the National Energy Conservation Policy Act (42 

5 U.S.C. 8256) is amended by adding at the end the fol6 lowing new subsection: 

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

8 may retain any funds appropriated to that agency for en9 ergy expenditures, at buildings subject to the requirements 

10 of section 543(a) and (b), that are not made because of 

11 energy savings. Except as otherwise provided by law, such 

12 funds may be used only for energy efficiency or unconven13 tional and renewable energy resources projects.’’. 

14 (g) REPORTS.—Section 548(b) of the National En15 ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 

16 amended—

17 (1) in the subsection heading, by inserting 

18 ‘‘THE PRESIDENT AND’’ before ‘‘CONGRESS’’; and 

19 (2) by inserting ‘‘President and’’ before ‘‘Con20 gress’’. 

21 (h) CONFORMING AMENDMENT.—Section 550(d) of 

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

23 8258b(d)) is amended in the second sentence by striking 

24 ‘‘the 20 percent reduction goal established under section 

25 543(a) of the National Energy Conservation Policy Act
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1 (42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy 

2 reduction goals established under section 543(a).’’. 

3 SEC. 1003. ENERGY USE MEASUREMENT AND ACCOUNT4 ABILITY. 

5 Section 543 of the National Energy Conservation 

6 Policy Act (42 U.S.C. 8253) is further amended by adding 

7 at the end the following: 

8 ‘‘(e) METERING OF ENERGY USE.—

9 ‘‘(1) DEADLINE.—By October 1, 2010, in ac10 cordance with guidelines established by the Sec11 retary under paragraph (2), all Federal buildings 

12 shall, for the purposes of efficient use of energy and 

13 reduction in the cost of electricity used in such 

14 buildings, be metered or submetered. Each agency 

15 shall use, to the maximum extent practicable, ad16 vanced meters or advanced metering devices that 

17 provide data at least daily and that measure at least 

18 hourly consumption of electricity in the Federal 

19 buildings of the agency. Such data shall be incor20 porated into existing Federal energy tracking sys21 tems and made available to Federal facility energy 

22 managers. 

23 ‘‘(2) GUIDELINES.—

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

25 days after the date of enactment of this sub-
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1 section, the Secretary, in consultation with the 

2 Department of Defense, the General Services 

3 Administration, representatives from the meter4 ing industry, utility industry, energy services in5 dustry, energy efficiency industry, national lab6 oratories, universities, and Federal facility en7 ergy managers, shall establish guidelines for 

8 agencies to carry out paragraph (1). 

9 ‘‘(B) REQUIREMENTS FOR GUIDELINES.—

10 The guidelines shall—

11 ‘‘(i) take into consideration—

12 ‘‘(I) the cost of metering and 

13 submetering and the reduced cost of 

14 operation and maintenance expected 

15 to result from metering and sub16 metering; 

17 ‘‘(II) the extent to which meter18 ing and submetering are expected to 

19 result in increased potential for en20 ergy management, increased potential 

21 for energy savings and energy effi22 ciency improvement, and cost and en23 ergy savings due to utility contract 

24 aggregation; and 
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1 ‘‘(III) the measurement and 

2 verification protocols of the Depart3 ment of Energy; 

4 ‘‘(ii) include recommendations con5 cerning the amount of funds and the num6 ber of trained personnel necessary to gath7 er and use the metering information to 

8 track and reduce energy use; 

9 ‘‘(iii) establish priorities for types and 

10 locations of buildings to be metered and 

11 submetered based on cost-effectiveness and 

12 a schedule of one or more dates, not later 

13 than 1 year after the date of issuance of 

14 the guidelines, on which the requirements 

15 specified in paragraph (1) shall take effect; 

16 and 

17 ‘‘(iv) establish exclusions from the re18 quirements specified in paragraph (1) 

19 based on the de minimis quantity of energy 

20 use of a Federal building, industrial proc21 ess, or structure. 

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

23 date guidelines are established under paragraph (2), 

24 in a report submitted by the agency under section 

25 548(a), each agency shall submit to the Secretary a 
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1 plan describing how the agency will implement the 

2 requirements of paragraph (1), including (A) how 

3 the agency will designate personnel primarily respon4 sible for achieving the requirements and (B) dem5 onstration by the agency, complete with documenta6 tion, of any finding that advanced meters or ad7 vanced metering devices, as defined in paragraph 

8 (1), are not practicable.’’.

9 SEC. 1004. FEDERAL BUILDING PERFORMANCE STAND10 ARDS. 

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

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

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

15 International Energy Conservation Code’’; and 

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

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

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

20 the date of enactment of this paragraph, the Sec21 retary of Energy shall establish, by rule, revised 

22 Federal building energy efficiency performance 

23 standards that require that, if cost-effective, for new 

24 Federal buildings—
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1 ‘‘(i) such buildings be designed so as to 

2 achieve energy consumption levels at least 30 

3 percent below those of the most recent 

4 ASHRAE Standard 90.1 or the most recent 

5 version of the International Energy Conserva6 tion Code, as appropriate; and 

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

9 all new and replacement buildings. 

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

11 1 year after the date of approval of amendments to 

12 ASHRAE Standard 90.1 or the 2000 International 

13 Energy Conservation Code, the Secretary of Energy 

14 shall determine, based on the cost-effectiveness of 

15 the requirements under the amendments, whether 

16 the revised standards established under this para17 graph should be updated to reflect the amendments. 

18 ‘‘(C) STATEMENT ON COMPLIANCE OF NEW

19 BUILDINGS.—In the budget request of the Federal 

20 agency for each fiscal year and each report sub21 mitted by the Federal agency under section 548(a) 

22 of the National Energy Conservation Policy Act (42 

23 U.S.C. 8258(a)), the head of each Federal agency 

24 shall include—
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1 ‘‘(i) a list of all new Federal buildings 

2 owned, operated, or controlled by the Federal 

3 agency; and 

4 ‘‘(ii) a statement concerning whether the 

5 Federal buildings meet or exceed the revised 

6 standards established under this paragraph.’’.

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

9 (a) REQUIREMENTS.—Part 3 of title V of the Na10 tional Energy Conservation Policy Act is amended by add11 ing at the end the following: 

12 ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFI13 CIENT PRODUCTS. 

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

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

17 energy efficiency under an Energy Star program. 

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

20 by section 324A of the Energy Policy and Conserva21 tion Act. 

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

23 agency’ has the meaning given the term in section 

24 4 of the Office of Federal Procurement Policy Act 

25 (41 U.S.C. 403). 
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1 ‘‘(4) FEMP DESIGNATED PRODUCT.—The term 

2 ‘FEMP designated product’ means a product that is 

3 designated under the Federal Energy Management 

4 Program of the Department of Energy as being 

5 among the highest 25 percent of equivalent products 

6 for energy efficiency. 

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

9 ‘‘(1) REQUIREMENT.—To meet the require10 ments of an executive agency for an energy con11 suming product, the head of the executive agency 

12 shall, except as provided in paragraph (2), procure—

13 ‘‘(A) an Energy Star product; or 

14 ‘‘(B) a FEMP designated product. 

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

16 agency is not required to procure an Energy Star 

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

19 in writing that— 

20 ‘‘(A) an Energy Star product or FEMP 

21 designated product is not cost-effective over the 

22 life of the product taking energy cost savings 

23 into account; or 

24 ‘‘(B) no Energy Star product or FEMP 

25 designated product is reasonably available that 
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1 meets the functional requirements of the execu2 tive agency. 

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

4 an executive agency shall incorporate into the speci5 fications for all procurements involving energy con6 suming products and systems, including guide speci7 fications, project specifications, and construction, 

8 renovation, and services contracts that include provi9 sion of energy consuming products and systems, and 

10 into the factors for the evaluation of offers received 

11 for the procurement, criteria for energy efficiency 

12 that are consistent with the criteria used for rating 

13 Energy Star products and for rating FEMP des14 ignated products. 

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

16 FEDERAL CATALOGS.—Energy Star products and FEMP 

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

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

21 the Defense Logistics Agency shall supply only Energy 

22 Star products or FEMP designated products for all prod23 uct categories covered by the Energy Star program or the 

24 Federal Energy Management Program, except in cases 

25 where the agency ordering a product specifies in writing 
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•HR 1644 IH 

1 that no Energy Star product or FEMP designated product 

2 is available to meet the buyer’s functional requirements, 

3 or that no Energy Star product or FEMP designated 

4 product is cost-effective for the intended application over 

5 the life of the product, taking energy cost savings into ac6 count. 

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

8 case of electric motors of 1 to 500 horsepower, agencies 

9 shall select only premium efficient motors that meet a 

10 standard designated by the Secretary. The Secretary shall 

11 designate such a standard within 120 days after the date 

12 of the enactment of this section, after considering the rec13 ommendations of associated electric motor manufacturers 

14 and energy efficiency groups. 

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

16 the date of the enactment of this section, the Secretary 

17 shall issue guidelines to carry out this section.’’. 

18 (b) CONFORMING AMENDMENT.—The table of con19 tents in section 1(b) of the National Energy Conservation 

20 Policy Act (42 U.S.C. 8201 note), as amended by section 

21 1001(b) of this Act, is further amended by inserting after 

22 the item relating to section 552 the following:

‘‘Sec. 553. Federal procurement of energy efficient products.’’.
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1 SEC. 1006. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

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

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

4 8287(c)) is repealed. 

5 (b) REPLACEMENT FACILITIES.—Section 801(a) of 

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

7 8287(a)) is amended by adding at the end the following 

8 new paragraph: 

9 ‘‘(3)(A) In the case of an energy savings con10 tract or energy savings performance contract pro11 viding for energy savings through the construction 

12 and operation of one or more buildings or facilities 

13 to replace one or more existing buildings or facilities, 

14 benefits ancillary to the purpose of such contract 

15 under paragraph (1) may include savings resulting 

16 from reduced costs of operation and maintenance at 

17 such replacement buildings or facilities when com18 pared with costs of operation and maintenance at 

19 the buildings or facilities being replaced, established 

20 through a methodology set forth in the contract. 

21 ‘‘(B) Notwithstanding paragraph (2)(B), aggre22 gate annual payments by an agency under an energy 

23 savings contract or energy savings performance con24 tract referred to in subparagraph (A) may take into 

25 account (through the procedures developed pursuant 

26 to this section) savings resulting from reduced costs
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•HR 1644 IH 

1 of operation and maintenance as described in that 

2 subparagraph.’’. 

3 (c) ENERGY SAVINGS.—Section 804(2) of the Na4 tional Energy Conservation Policy Act (42 U.S.C. 

5 8287c(2)) is amended to read as follows: 

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

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

8 water, from a base cost established through a 

9 methodology set forth in the contract, used in 

10 an existing federally owned building or build11 ings or other federally owned facilities as a re12 sult of—

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

14 equipment, improvements, altered oper15 ation and maintenance, or technical serv16 ices; 

17 ‘‘‘(ii) the increased efficient use of ex18 isting energy sources by cogeneration or 

19 heat recovery, excluding any cogeneration 

20 process for other than a federally owned 

21 building or buildings or other federally 

22 owned facilities; or 

23 ‘‘(iii) the increased efficient use of ex24 isting water sources; or 
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•HR 1644 IH 

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

2 or facility described in section 801(a)(3), a re3 duction in the cost of energy, from a base cost 

4 established through a methodology set forth in 

5 the contract, that would otherwise be utilized in 

6 one or more existing federally owned buildings 

7 or other federally owned facilities by reason of 

8 the construction and operation of the replace9 ment building or facility.’’. 

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

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

12 8287c(3)) is amended to read as follows: 

13 ‘‘(3) The terms ‘energy savings contract’ and 

14 ‘energy savings performance contract’ mean a con15 tract which provides for—

16 ‘‘(A) the performance of services for the 

17 design, acquisition, installation, testing, oper18 ation, and, where appropriate, maintenance and 

19 repair, of an identified energy or water con20 servation measure or series of measures at one 

21 or more locations; or 

22 ‘‘(B) energy savings through the construc23 tion and operation of one or more buildings or 

24 facilities to replace one or more existing build25 ings or facilities. 
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1 Such contracts shall, with respect to an agency facil2 ity that is a public building as such term is defined 

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

4 (40 U.S.C. 612(1)), be in compliance with the pro5 spectus requirements and procedures of section 7 of 

6 the Public Buildings Act of 1959 (40 U.S.C. 606).’’. 

7 (e) ENERGY OR WATER CONSERVATION MEASURE.—

8 Section 804(4) of the National Energy Conservation Pol9 icy Act (42 U.S.C. 8287c(4)) is amended to read as fol10 lows: 

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

12 measure’ means—

13 ‘‘(A) an energy conservation measure, as 

14 defined in section 551(4) (42 U.S.C. 8259(4)); 

15 or 

16 ‘‘(B) a water conservation measure that 

17 improves water efficiency, is life cycle cost-effec18 tive, and involves water conservation, water re19 cycling or reuse, more efficient treatment of 

20 wastewater or stormwater, improvements in op21 eration or maintenance efficiencies, retrofit ac22 tivities, or other related activities, not at a Fed23 eral hydroelectric facility.’’. 

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

25 enactment of this section, the Secretary of Energy shall 
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•HR 1644 IH 

1 complete a review of the Energy Savings Performance 

2 Contract program to identify statutory, regulatory, and 

3 administrative obstacles that prevent Federal agencies 

4 from fully utilizing the program. In addition, this review 

5 shall identify all areas for increasing program flexibility 

6 and effectiveness, including audit and measurement 

7 verification requirements, accounting for energy use in de8 termining savings, contracting requirements, and energy 

9 efficiency services covered. The Secretary shall report 

10 these findings to the Committee on Energy and Commerce 

11 of the House of Representatives and the Committee on 

12 Energy and Natural Resources of the Senate, and shall 

13 implement identified administrative and regulatory 

14 changes to increase program flexibility and effectiveness 

15 to the extent that such changes are consistent with statu16 tory authority.

17 SEC. 1007. VOLUNTARY COMMITMENTS TO REDUCE INDUS18 TRIAL ENERGY INTENSITY. 

19 (a) VOLUNTARY AGREEMENTS.—The Secretary of 

20 Energy shall enter into voluntary agreements with one or 

21 more persons in industrial sectors that consume signifi22 cant amounts of primary energy per unit of physical out23 put to reduce the energy intensity of their production ac24 tivities. 
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1 (b) GOAL.—Voluntary agreements under this section 

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

3 than 2.5 percent each year from 2004 through 2014. 

4 (c) RECOGNITION.—The Secretary of Energy, in co5 operation with the Administrator of the Environmental 

6 Protection Agency and other appropriate Federal agen7 cies, shall develop mechanisms to recognize and publicize 

8 the achievements of participants in voluntary agreements 

9 under this section. 

10 (d) DEFINITION.—In this section, the term ‘‘energy 

11 intensity’’ means the primary energy consumed per unit 

12 of physical output in an industrial process. 

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

14 into an agreement under this section and continues to 

15 make a good faith effort to achieve the energy efficiency 

16 goals specified in the agreement shall be eligible to receive 

17 from the Secretary a grant or technical assistance as ap18 propriate to assist in the achievement of those goals. 

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

20 June 30, 2014, the Secretary shall submit to Congress a 

21 report that evaluates the success of the voluntary agree22 ments, with independent verification of a sample of the 

23 energy savings estimates provided by participating firms.
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•HR 1644 IH 

1 SEC. 1008. FEDERAL AGENCY PARTICIPATION IN DEMAND 

2 REDUCTION PROGRAMS. 

3 Section 546(c) of the National Energy Conservation 

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

5 the end of the following new paragraph: 

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

7 in State or regional demand side reduction programs. The 

8 availability of such programs, including measures employ9 ing onsite generation, and the savings resulting from such 

10 participation, should be included in the evaluation of en11 ergy options for Federal facilities.’’. 

12 SEC. 1009. ADVANCED BUILDING EFFICIENCY TESTBED. 

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

14 consultation with the Administrator of the General Serv15 ices Administration, shall establish an Advanced Building 

16 Efficiency Testbed program for the development, testing, 

17 and demonstration of advanced engineering systems, com18 ponents, and materials to enable innovations in building 

19 technologies. The program shall evaluate efficiency con20 cepts for government and industry buildings, and dem21 onstrate the ability of next generation buildings to support 

22 individual and organizational productivity and health as 

23 well as flexibility and technological change to improve en24 vironmental sustainability. Such program shall com25 plement and not duplicate existing national programs. 
32

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1 (b) PARTICIPANTS.—The program established under 

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

3 to combine the expertise from numerous academic fields 

4 including, at a minimum, intelligent workplaces and ad5 vanced building systems and engineering, electrical and 

6 computer engineering, computer science, architecture, 

7 urban design, and environmental and mechanical engi8 neering. Such university shall partner with other univer9 sities and entities who have established programs and the 

10 capability of advancing innovative building efficiency tech11 nologies. 

12 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary of En14 ergy to carry out this section $6,000,000 for each of the 

15 fiscal years 2004 through 2006, to remain available until 

16 expended. For any fiscal year in which funds are expended 

17 under this section, the Secretary shall provide one-third 

18 of the total amount to the lead university described in sub19 section (b), and provide the remaining two-thirds to the 

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

21 basis.
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•HR 1644 IH 

1 SEC. 1010. INCREASED USE OF RECOVERED MINERAL COM2 PONENT IN FEDERALLY FUNDED PROJECTS 

3 INVOLVING PROCUREMENT OF CEMENT OR 

4 CONCRETE. 

5 (a) AMENDMENT.—Subtitle F of the Solid Waste 

6 Disposal Act (42 U.S.C. 6961 et seq.) is amended by add7 ing at the end the following new section: 

8 ‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT

9 IN FEDERALLY FUNDED PROJECTS INVOLVING PRO10 CUREMENT OF CEMENT OR CONCRETE

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

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

13 means—

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

15 ‘‘(B) the head of each other Federal agen16 cy that on a regular basis procures, or provides 

17 Federal funds to pay or assist in paying the 

18 cost of procuring, material for cement or con19 crete projects. 

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

21 term ‘cement or concrete project’ means a project 

22 for the construction or maintenance of a highway or 

23 other transportation facility or a Federal, State, or 

24 local government building or other public facility 

25 that—
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•HR 1644 IH 

1 ‘‘(A) involves the procurement of cement 

2 or concrete; and 

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

4 using Federal funds. 

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

6 term ‘recovered mineral component’ means—

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

8 ‘‘(B) coal combustion fly ash; and 

9 ‘‘(C) any other waste material or byprod10 uct recovered or diverted from solid waste that 

11 the Administrator, in consultation with an 

12 agency head, determines should be treated as 

13 recovered mineral component under this section 

14 for use in cement or concrete projects paid for, 

15 in whole or in part, by the agency head. 

16 ‘‘(b) IMPLEMENTATION OF REQUIREMENTS.—

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

18 the date of enactment of this section, the Adminis19 trator and each agency head shall take such actions 

20 as are necessary to implement fully all procurement 

21 requirements and incentives in effect as of the date 

22 of enactment of this section (including guidelines 

23 under section 6002) that provide for the use of ce24 ment and concrete incorporating recovered mineral 

25 component in cement or concrete projects. 
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1 ‘‘(2) PRIORITY.—In carrying out paragraph (1) 

2 an agency head shall give priority to achieving great3 er use of recovered mineral component in cement or 

4 concrete projects for which recovered mineral compo5 nents historically have not been used or have been 

6 used only minimally. 

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

8 each agency head shall carry out this subsection in 

9 accordance with section 6002. 

10 ‘‘(c) FULL IMPLEMENTATION STUDY.—

11 ‘‘(1) IN GENERAL.—The Administrator, in co12 operation with the Secretary of Transportation and 

13 the Secretary of Energy, shall conduct a study to de14 termine the extent to which current procurement re15 quirements, when fully implemented in accordance 

16 with subsection (b), may realize energy savings and 

17 environmental benefits attainable with substitution 

18 of recovered mineral component in cement used in 

19 cement or concrete projects. 

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

21 shall—

22 ‘‘(A) quantify the extent to which recov23 ered mineral components are being substituted 

24 for Portland cement, particularly as a result of 

25 current procurement requirements, and the en-
36

•HR 1644 IH 

1 ergy savings and environmental benefits associ2 ated with that substitution; 

3 ‘‘(B) identify all barriers in procurement 

4 requirements to fuller realization of energy sav5 ings and environmental benefits, including bar6 riers resulting from exceptions from current 

7 law; and 

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

9 achieve greater substitution of recovered min10 eral component in types of cement or concrete 

11 projects for which recovered mineral compo12 nents historically have not been used or have 

13 been used only minimally; 

14 ‘‘(ii) evaluate the feasibility of establishing 

15 guidelines or standards for optimized substi16 tution rates of recovered mineral component in 

17 those cement or concrete projects; and 

18 ‘‘(iii) identify any potential environmental 

19 or economic effects that may result from great20 er substitution of recovered mineral component 

21 in those cement or concrete projects. 

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

23 the date of enactment of this section, the Adminis24 trator shall submit to the Committee on Appropria25 tions and Committee on Environment and Public
37

•HR 1644 IH 

1 Works of the Senate and the Committee on Appro2 priations, Committee on Energy and Commerce, and 

3 Committee on Transportation and Infrastructure of 

4 the House of Representatives a report on the study. 

5 ‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.—

6 Unless the study conducted under subsection (c) identifies 

7 any effects or other problems described in subsection 

8 (c)(2)(C)(iii) that warrant further review or delay, the Ad9 ministrator and each agency head shall, within 1 year of 

10 the release of the report in accordance with subsection 

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

12 to establish procurement requirements and incentives that 

13 provide for the use of cement and concrete with increased 

14 substitution of recovered mineral component in the con15 struction and maintenance of cement or concrete projects, 

16 so as to—

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

18 environmental benefits associated with increased 

19 substitution; and 

20 ‘‘(2) eliminate barriers identified under sub21 section (c). 

22 ‘‘(e) EFFECT OF SECTION.—Nothing in this section 

23 affects the requirements of section 6002 (including the 

24 guidelines and specifications for implementing those re25 quirements).’’. 
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•HR 1644 IH 

1 (b) TABLE OF CONTENTS AMENDMENT.—The table 

2 of contents of the Solid Waste Disposal Act is amended 

3 by adding after the item relating to section 6004 the fol4 lowing new item:

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

projects involving procurement of cement or concrete.’’.

5 Subtitle B—Energy Assistance and 

6 State Programs 

7 SEC. 1021. LIHEAP AND WEATHERIZATION ASSISTANCE. 

8 (a) LOW-INCOME HOME ENERGY ASSISTANCE PRO9 GRAM.—Section 2602(b) of the Low-Income Home Energy 

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

11 by striking ‘‘each of fiscal years 2002 through 2004’’ and 

12 inserting ‘‘each of fiscal years 2002 and 2003, and 

13 $3,400,000,000 for each of fiscal years 2004 through 

14 2006’’. 

15 (b) WEATHERIZATION.—Section 422 of the Energy 

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

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

18 such sums as may be necessary’’ and inserting 

19 ‘‘$325,000,000 for fiscal year 2004, $400,000,000 for fis20 cal year 2005, and $500,000,000 for fiscal year 2006’’. 

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

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

23 Health and Human Services shall transmit to the Con24 gress a report on how the Low-Income Home Energy As-
39

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1 sistance Program could be used more effectively to prevent 

2 loss of life from extreme temperatures. In preparing such 

3 report, the Secretary shall consult with appropriate offi4 cials in all 50 States and the District of Columbia. 

5 SEC. 1022. STATE ENERGY PROGRAMS. 

6 (a) STATE ENERGY CONSERVATION PLANS.—Section 

7 362 of the Energy Policy and Conservation Act (42 U.S.C. 

8 6322) is amended by inserting at the end the following 

9 new subsection: 

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

11 invite the Governor of each State to review and, if nec12 essary, revise the energy conservation plan of such State 

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

14 consider the energy conservation plans of other States 

15 within the region, and identify opportunities and actions 

16 carried out in pursuit of common energy conservation 

17 goals.’’. 

18 (b) STATE ENERGY EFFICIENCY GOALS.—Section 

19 364 of the Energy Policy and Conservation Act (42 U.S.C. 

20 6324) is amended to read as follows: 

21 ‘‘STATE ENERGY EFFICIENCY GOALS

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

23 respect to which assistance is made available under this 

24 part on or after the date of enactment of the Energy Pol25 icy Act of 2003 shall contain a goal, consisting of an im26 provement of 25 percent or more in the efficiency of use 
40

•HR 1644 IH 

1 of energy in the State concerned in calendar year 2010 

2 as compared to calendar year 1990, and may contain in3 terim goals.’’. 

4 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

5 365(f) of the Energy Policy and Conservation Act (42 

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

7 1999 through 2003 such sums as may be necessary’’ and 

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

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

10 SEC. 1023. ENERGY EFFICIENT APPLIANCE REBATE PRO11 GRAMS. 

12 (a) DEFINITIONS.—In this section: 

13 (1) ELIGIBLE STATE.—The term ‘‘eligible 

14 State’’ means a State that meets the requirements 

15 of subsection (b). 

16 (2) ENERGY STAR PROGRAM.—The term ‘‘En17 ergy Star program’’ means the program established 

18 by section 324A of the Energy Policy and Conserva19 tion Act. 

20 (3) RESIDENTIAL ENERGY STAR PRODUCT.—

21 The term ‘‘residential Energy Star product’’ means 

22 a product for a residence that is rated for energy ef23 ficiency under the Energy Star program. 

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

25 energy office’’ means the State agency responsible 
41

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1 for developing State energy conservation plans under 

2 section 362 of the Energy Policy and Conservation 

3 Act (42 U.S.C. 6322). 

4 (5) STATE PROGRAM.—The term ‘‘State pro5 gram’’ means a State energy efficient appliance re6 bate program described in subsection (b)(1). 

7 (b) ELIGIBLE STATES.—A State shall be eligible to 

8 receive an allocation under subsection (c) if the State—

9 (1) establishes (or has established) a State en10 ergy efficient appliance rebate program to provide 

11 rebates to residential consumers for the purchase of 

12 residential Energy Star products to replace used ap13 pliances of the same type; 

14 (2) submits an application for the allocation at 

15 such time, in such form, and containing such infor16 mation as the Secretary may require; and 

17 (3) provides assurances satisfactory to the Sec18 retary that the State will use the allocation to sup19 plement, but not supplant, funds made available to 

20 carry out the State program. 

21 (c) AMOUNT OF ALLOCATIONS.—

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

23 for each fiscal year, the Secretary shall allocate to 

24 the State energy office of each eligible State to carry 

25 out subsection (d) an amount equal to the product
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1 obtained by multiplying the amount made available 

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

3 that the population of the State in the most recent 

4 calendar year for which data are available bears to 

5 the total population of all eligible States in that cal6 endar year. 

7 (2) MINIMUM ALLOCATIONS.—For each fiscal 

8 year, the amounts allocated under this subsection 

9 shall be adjusted proportionately so that no eligible 

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

11 determined by the Secretary. 

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

13 a State energy office under subsection (c) may be used 

14 to pay up to 50 percent of the cost of establishing and 

15 carrying out a State program. 

16 (e) ISSUANCE OF REBATES.—Rebates may be pro17 vided to residential consumers that meet the requirements 

18 of the State program. The amount of a rebate shall be 

19 determined by the State energy office, taking into consid20 eration—

21 (1) the amount of the allocation to the State 

22 energy office under subsection (c); 

23 (2) the amount of any Federal or State tax in24 centive available for the purchase of the residential 

25 Energy Star product; and 
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•HR 1644 IH 

1 (3) the difference between the cost of the resi2 dential Energy Star product and the cost of an ap3 pliance that is not a residential Energy Star prod4 uct, but is of the same type as, and is the nearest 

5 capacity, performance, and other relevant character6 istics (as determined by the State energy office) to 

7 the residential Energy Star product. 

8 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to carry out this section 

10 $50,000,000 for each of the fiscal years 2004 through 

11 2008.

12 SEC. 1024. ENERGY EFFICIENT PUBLIC BUILDINGS. 

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

14 grants to the State agency responsible for developing State 

15 energy conservation plans under section 362 of the Energy 

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

17 such agency exists, a State agency designated by the Gov18 ernor of the State, to assist units of local government in 

19 the State in improving the energy efficiency of public 

20 buildings and facilities—

21 (1) through construction of new energy efficient 

22 public buildings that use at least 30 percent less en23 ergy than a comparable public building constructed 

24 in compliance with standards prescribed in chapter 

25 8 of the 2000 International Energy Conservation 
44

•HR 1644 IH 

1 Code, or a similar State code intended to achieve 

2 substantially equivalent efficiency levels; or 

3 (2) through renovation of existing public build4 ings to achieve reductions in energy use of at least 

5 30 percent as compared to the baseline energy use 

6 in such buildings prior to renovation, assuming a 3-

7 year, weather-normalized average for calculating 

8 such baseline. 

9 (b) ADMINISTRATION.—State energy offices receiving 

10 grants under this section shall—

11 (1) maintain such records and evidence of com12 pliance as the Secretary may require; and 

13 (2) develop and distribute information and ma14 terials and conduct programs to provide technical 

15 services and assistance to encourage planning, fi16 nancing, and design of energy efficient public build17 ings by units of local government. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

19 purposes of this section, there are authorized to be appro20 priated to the Secretary of Energy such sums as may be 

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

22 more than 30 percent of appropriated funds shall be used 

23 for administration.
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1 SEC. 1025. LOW INCOME COMMUNITY ENERGY EFFICIENCY 

2 PILOT PROGRAM. 

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

4 to make grants to units of local government, private, non5 profit community development organizations, and Indian 

6 tribe economic development entities to improve energy effi7 ciency, identify and develop alternative renewable and dis8 tributed energy supplies, and increase energy conservation 

9 in low income rural and urban communities. 

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

11 grants on a competitive basis for—

12 (1) investments that develop alternative renew13 able and distributed energy supplies; 

14 (2) energy efficiency projects and energy con15 servation programs; 

16 (3) studies and other activities that improve en17 ergy efficiency in low income rural and urban com18 munities; 

19 (4) planning and development assistance for in20 creasing the energy efficiency of buildings and facili21 ties; and 

22 (5) technical and financial assistance to local 

23 government and private entities on developing new 

24 renewable and distributed sources of power or com25 bined heat and power generation. 
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1 (c) DEFINITION.—For purposes of this section, the 

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

3 or other organized group or community, including any 

4 Alaskan Native village or regional or village corporation 

5 as defined in or established pursuant to the Alaska Native 

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

7 is recognized as eligible for the special programs and serv8 ices provided by the United States to Indians because of 

9 their status as Indians. 

10 (d) AUTHORIZATION OF APPROPRIATIONS.—For the 

11 purposes of this section there are authorized to be appro12 priated to the Secretary of Energy $20,000,000 for fiscal 

13 year 2004 and each fiscal year thereafter through fiscal 

14 year 2006. 

15 Subtitle C—Energy Efficient 

16 Products 

17 SEC. 1041. ENERGY STAR PROGRAM. 

18 (a) AMENDMENT.—The Energy Policy and Conserva19 tion Act (42 U.S.C. 6201 and following) is amended by 

20 inserting the following after section 324: 

21 ‘‘SEC. 324A. ENERGY STAR PROGRAM. 

22 ‘‘There is established at the Department of Energy 

23 and the Environmental Protection Agency a program to 

24 identify and promote energy-efficient products and build25 ings in order to reduce energy consumption, improve en-
47

•HR 1644 IH 

1 ergy security, and reduce pollution through labeling of and 

2 other forms of communication about products and build3 ings that meet the highest energy efficiency standards. Re4 sponsibilities under the program shall be divided between 

5 the Department of Energy and the Environmental Protec6 tion Agency consistent with the terms of agreements be7 tween the two agencies. The Administrator and the Sec8 retary shall—

9 ‘‘(1) promote Energy Star compliant tech10 nologies as the preferred technologies in the market11 place for achieving energy efficiency and to reduce 

12 pollution; 

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

14 Energy Star label, including special outreach to 

15 small businesses; 

16 ‘‘(3) preserve the integrity of the Energy Star 

17 label; and 

18 ‘‘(4) solicit the comments of interested parties 

19 in establishing a new Energy Star product category 

20 or in revising a product category, and upon adoption 

21 of a new or revised product category provide an ex22 planation of the decision that responds to significant 

23 public comments.’’. 

24 (b) TABLE OF CONTENTS AMENDMENT.—The table 

25 of contents of the Energy Policy and Conservation Act is
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1 amended by inserting after the item relating to section 

2 324 the following new item:

‘‘Sec. 324A. Energy Star program.’’.

3 SEC. 1042. CONSUMER EDUCATION ON ENERGY EFFI4 CIENCY BENEFITS OF AIR CONDITIONING, 

5 HEATING, AND VENTILATION MAINTENANCE. 

6 Section 337 of the Energy Policy and Conservation 

7 Act (42 U.S.C. 6307) is amended by adding at the end 

8 the following: 

9 ‘‘(c) HVAC MAINTENANCE.—(1) For the purpose of 

10 ensuring that installed air conditioning and heating sys11 tems operate at their maximum rated efficiency levels, the 

12 Secretary shall, within 180 days of the date of enactment 

13 of this subsection, carry out a program to educate home14 owners and small business owners concerning the energy 

15 savings resulting from properly conducted maintenance of 

16 air conditioning, heating, and ventilating systems. 

17 ‘‘(2) The Secretary shall carry out the program in 

18 cooperation with the Administrator of the Environmental 

19 Protection Agency and such other entities as the Secretary 

20 considers appropriate, including industry trade associa21 tions, industry members, and energy efficiency organiza22 tions. 

23 ‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST24 ANCE.—The Administrator of the Small Business Admin25 istration, in consultation with the Secretary of Energy and 
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1 the Administrator of the Environmental Protection Agen2 cy, shall develop and coordinate a Government-wide pro3 gram, building on the existing Energy Star for Small 

4 Business Program, to assist small business to become 

5 more energy efficient, understand the cost savings obtain6 able through efficiencies, and identify financing options 

7 for energy efficiency upgrades. The Secretary and the Ad8 ministrator shall make the program information available 

9 directly to small businesses and through other Federal 

10 agencies, including the Federal Emergency Management 

11 Agency, and the Department of Agriculture.’’.

12 SEC. 1043. ADDITIONAL DEFINITIONS. 

13 Section 321 of the Energy Policy and Conservation 

14 Act (42 U.S.C. 6291) is amended by adding at the end 

15 the following: 

16 ‘‘(32) The term ‘battery charger’ means a de17 vice that charges batteries for consumer products. 

18 ‘‘(33) The term ‘commercial refrigerator, freez19 er and refrigerator-freezer’ means a refrigerator, 

20 freezer or refrigerator-freezer that— 

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

22 under this Act; and 

23 ‘‘(B) incorporates most components in24 volved in the vapor-compression cycle and the 

25 refrigerated compartment in a single package. 
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1 ‘‘(34) The term ‘external power supply’ means 

2 an external power supply circuit that is used to con3 vert household electric current into either DC cur4 rent or lower-voltage AC current to operate a con5 sumer product. 

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

7 sign that— 

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

9 place to identify an exit; and 

10 ‘‘(B) consists of— 

11 ‘‘(i) an electrically powered integral 

12 light source that illuminates the legend 

13 ‘EXIT’ and any directional indicators; and 

14 ‘‘(ii) provides contrast between the 

15 legend, any directional indicators, and the 

16 background. 

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

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

19 means a transformer that— 

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

21 less; 

22 ‘‘(ii) is air-cooled; 

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

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

25 of 60 Hertz. 
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1 ‘‘(B) The term ‘low-voltage dry-type trans2 former’ does not include—

3 ‘‘(i) transformers with multiple voltage 

4 taps, with the highest voltage tap equaling at 

5 least 20 percent more than the lowest voltage 

6 tap; 

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

8 used in a special purpose application, such as 

9 transformers commonly known as drive trans10 formers, rectifier transformers, 

11 autotransformers, Uninterruptible Power Sys12 tem transformers, impedance transformers, har13 monic transformers, regulating transformers, 

14 sealed and nonventilating transformers, ma15 chine tool transformers, welding transformers, 

16 grounding transformers, or testing trans17 formers; or 

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

19 (ii) that is excluded by the Secretary by rule be20 cause the transformer is designed for a special 

21 application and the application of standards to 

22 the transformer would not result in significant 

23 energy savings. 

24 ‘‘(37) The term ‘standby mode’ means the low25 est amount of electric power used by a household ap-
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•HR 1644 IH 

1 pliance when not performing its active functions, as 

2 defined on an individual product basis by the Sec3 retary. 

4 ‘‘(38) The term ‘torchiere’ means a portable 

5 electric lamp with a reflector bowl that directs light 

6 upward so as to give indirect illumination. 

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

8 consisting of two or more coils of insulated wire that 

9 transfers alternating current by electromagnetic in10 duction from one coil to another to change the origi11 nal voltage or current value. 

12 ‘‘(40) The term ‘unit heater’ means a self-con13 tained fan-type heater designed to be installed with14 in the heated space, except that such term does not 

15 include a warm air furnace. 

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

17 standard 8-inch (200mm) or 12-inch (300mm) traf18 fic signal indication, consisting of a light source, a 

19 lens, and all other parts necessary for operation, 

20 that communicates movement messages to drivers 

21 through red, amber, and green colors.’’.

22 SEC. 1044. ADDITIONAL TEST PROCEDURES. 

23 (a) EXIT SIGNS.—Section 323(b) of the Energy Pol24 icy and Conservation Act (42 U.S.C. 6293) is amended 

25 by adding at the end the following: 
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1 ‘‘(9) Test procedures for illuminated exit signs 

2 shall be based on the test method used under 

3 Version 2.0 of the Energy Star program of the Envi4 ronmental Protection Agency for illuminated exit 

5 signs. 

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

7 distribution transformers shall be based on the 

8 ‘Standard Test Method for Measuring the Energy 

9 Consumption of Distribution Transformers’ pre10 scribed by the National Electrical Manufacturers As11 sociation (NEMA TP 2–1998). The Secretary may 

12 review and revise this test procedure based on future 

13 revisions to such standard test method. 

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

15 shall be based on the test method used under the 

16 Energy Star program of the Environmental Protec17 tion Agency for traffic signal modules, as in effect 

18 on the date of enactment of this paragraph.’’. 

19 (b) ADDITIONAL CONSUMER AND COMMERCIAL

20 PRODUCTS.—Section 323 of the Energy Policy and Con21 servation Act (42 U.S.C. 6293) is further amended by 

22 adding at the end the following: 

23 ‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL

24 PRODUCTS.—The Secretary shall within 24 months after 

25 the date of enactment of this subsection prescribe testing 
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1 requirements for suspended ceiling fans, refrigerated bot2 tled or canned beverage vending machines, commercial 

3 unit heaters, and commercial refrigerators, freezers and 

4 refrigerator-freezers. Such testing requirements shall be 

5 based on existing test procedures used in industry to the 

6 extent practical and reasonable. In the case of suspended 

7 ceiling fans, such test procedures shall include efficiency 

8 at both maximum output and at an output no more than 

9 50 percent of the maximum output.’’. 

10 SEC. 1045. ENERGY CONSERVATION STANDARDS FOR ADDI11 TIONAL CONSUMER AND COMMERCIAL PROD12 UCTS. 

13 Section 325 of the Energy Policy and Conservation 

14 Act (42 U.S.C. 6295) is amended by adding at the end 

15 the following: 

16 ‘‘(u) STANDBY MODE ELECTRIC ENERGY CONSUMP17 TION.—

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

19 shall, within 18 months after the date of enactment 

20 of this subsection, prescribe by notice and comment, 

21 definitions of standby mode and test procedures for 

22 the standby mode power use of battery chargers and 

23 external power supplies. In establishing these test 

24 procedures, the Secretary shall consider, among 

25 other factors, existing test procedures used for meas-
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1 uring energy consumption in standby mode and as2 sess the current and projected future market for 

3 battery chargers and external power supplies. This 

4 assessment shall include estimates of the significance 

5 of potential energy savings from technical improve6 ments to these products and suggested product 

7 classes for standards. Prior to the end of this time 

8 period, the Secretary shall hold a scoping workshop 

9 to discuss and receive comments on plans for devel10 oping energy conservation standards for standby 

11 mode energy use for these products. 

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

13 the date of enactment of this subsection, issue a 

14 final rule that determines whether energy conserva15 tion standards shall be promulgated for battery 

16 chargers and external power supplies or classes 

17 thereof. For each product class, any such standards 

18 shall be set at the lowest level of standby energy use 

19 that— 

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

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

22 ‘‘(ii) will result in significant overall an23 nual energy savings, considering both standby 

24 mode and other operating modes. 
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1 ‘‘(2) DESIGNATION OF ADDITIONAL COVERED

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

3 date of enactment of this subsection, the Secretary 

4 shall publish for public comment and public hearing 

5 a notice to determine whether any noncovered prod6 ucts should be designated as covered products for 

7 the purpose of instituting a rulemaking under this 

8 section to determine whether an energy conservation 

9 standard restricting standby mode energy consump10 tion, should be promulgated; except that any restric11 tion on standby mode energy consumption shall be 

12 limited to major sources of such consumption. 

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

14 subparagraph (A) of whether to designate new cov15 ered products and institute rulemakings, the Sec16 retary shall, among other relevant factors and in ad17 dition to the criteria in section 322(b), consider— 

18 ‘‘(i) standby mode power consumption 

19 compared to overall product energy consump20 tion; and 

21 ‘‘(ii) the priority and energy savings poten22 tial of standards which may be promulgated 

23 under this subsection compared to other re24 quired rulemakings under this section and the 
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1 available resources of the Department to con2 duct such rulemakings. 

3 ‘‘(C) Not later than 1 year after the date of en4 actment of this subsection, the Secretary shall issue 

5 a determination of any new covered products for 

6 which he intends to institute rulemakings on standby 

7 mode pursuant to this section and he shall state the 

8 dates by which he intends to initiate those 

9 rulemakings. 

10 ‘‘(3) REVIEW OF STANDBY ENERGY USE IN

11 COVERED PRODUCTS.—In determining pursuant to 

12 section 323 whether test procedures and energy con13 servation standards pursuant to this section should 

14 be revised, the Secretary shall consider for covered 

15 products which are major sources of standby mode 

16 energy consumption whether to incorporate standby 

17 mode into such test procedures and energy conserva18 tion standards, taking into account, among other 

19 relevant factors, the criteria for non-covered prod20 ucts in subparagraph (B) of paragraph (2) of this 

21 subsection. 

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

23 Any rulemaking instituted under this subsection or

24 for covered products under this section which re25 stricts standby mode power consumption shall be 
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1 subject to the criteria and procedures for issuing en2 ergy conservation standards set forth in this section 

3 and the criteria set forth in subparagraph (B) of 

4 paragraph (2) of this subsection. 

5 ‘‘(B) No standard can be proposed for new cov6 ered products or covered products in a standby mode 

7 unless the Secretary has promulgated applicable test 

8 procedures for each product pursuant to section 323. 

9 ‘‘(C) The provisions of section 327 shall apply 

10 to new covered products which are subject to the 

11 rulemakings for standby mode after a final rule has 

12 been issued. 

13 ‘‘(5) EFFECTIVE DATE.—Any standard promul14 gated under this subsection shall be applicable to 

15 products manufactured or imported 3 years after the 

16 date of promulgation. 

17 ‘‘(6) VOLUNTARY PROGRAMS TO REDUCE

18 STANDBY MODE ENERGY USE.—The Secretary and 

19 the Administrator shall collaborate and develop pro20 grams, including programs pursuant to section 324A 

21 (relating to Energy Star Programs) and other vol22 untary industry agreements or codes of conduct, 

23 which are designed to reduce standby mode energy 

24 use. 
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1 ‘‘(v) SUSPENDED CEILING FANS, VENDING MA2 CHINES, UNIT HEATERS, AND COMMERCIAL REFRIG3 ERATORS, FREEZERS AND REFRIGERATOR-FREEZERS.—

4 The Secretary shall within 24 months after the date on 

5 which testing requirements are prescribed by the Sec6 retary pursuant to section 323(f), prescribe, by rule, en7 ergy conservation standards for suspended ceiling fans, re8 frigerated bottled or canned beverage vending machines, 

9 unit heaters, and commercial refrigerators, freezers and 

10 refrigerator-freezers. In establishing standards under this 

11 subsection, the Secretary shall use the criteria and proce12 dures contained in subsections (l) and (m). Any standard 

13 prescribed under this subsection shall apply to products 

14 manufactured 3 years after the date of publication of a 

15 final rule establishing such standard. 

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

17 signs manufactured on or after January 1, 2005 shall 

18 meet the Version 2.0 Energy Star Program performance 

19 requirements for illuminated exit signs prescribed by the 

20 Environmental Protection Agency 

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

22 after January 1, 2005— 

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

24 power; and 
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1 ‘‘(2) shall not be capable of operating with 

2 lamps that total more than 190 watts. 

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

4 The efficiency of low voltage dry-type transformers manu5 factured on or after January 1, 2005 shall be the Class 

6 I Efficiency Levels for low voltage dry-type transformers 

7 specified in Table 4–2 of the ‘Guide for Determining En8 ergy Efficiency for Distribution Transformers’ published 

9 by the National Electrical Manufacturers Association 

10 (NEMA TP–1–1996). 

11 ‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal 

12 modules manufactured on or after January 1, 2006 shall 

13 meet the performance requirements used under the En14 ergy Star program of the Environmental Protection Agen15 cy for traffic signals, as in effect on the date of enactment 

16 of this paragraph, and shall be installed with compatible, 

17 electrically-connected signal control interface devices and 

18 conflict monitoring systems. 

19 ‘‘(aa) EFFECTIVE DATE OF SECTION 327.—The pro20 visions of section 327 shall apply to products for which 

21 standards are set in subsections (v) through (z) of this 

22 section after the effective date for such standards.’’.

23 SEC. 1046. ENERGY LABELING. 

24 (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER

25 PRODUCT LABELING.—Paragraph (2) of section 324(a) of 
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1 the Energy Policy and Conservation Act (42 U.S.C. 

2 6294(a)(2)) is amended by adding at the end the fol3 lowing: 

4 ‘‘(F) Not later than 3 months after the date of enact5 ment of this subparagraph, the Commission shall initiate 

6 a rulemaking to consider the effectiveness of the current 

7 consumer products labeling program in assisting con8 sumers in making purchasing decisions and improving en9 ergy efficiency and to consider changes to the labeling 

10 rules that would improve the effectiveness of consumer 

11 product labels. Such rulemaking shall be completed within 

12 2 years after the date of enactment of this subpara13 graph.’’. 

14 (b) RULEMAKING ON LABELING FOR ADDITIONAL

15 PRODUCTS.—Section 324(a) of the Energy Policy and 

16 Conservation Act (42 U.S.C. 6294(a)) is further amended 

17 by adding at the end the following: 

18 ‘‘(5) The Secretary or the Commission, as appro19 priate, may for covered products referred to in subsections 

20 (u) through (z) of section 325, prescribe, by rule, pursuant 

21 to this section, labeling requirements for such products 

22 after a test procedure has been set pursuant to section 

23 323.’’.
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1 SEC. 1047. STUDY OF ENERGY EFFICIENCY STANDARDS. 

2 The Secretary of Energy shall contract with the Na3 tional Academy of Sciences for a study, to be completed 

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

5 the goals of energy efficiency standards are best served 

6 by measurement of energy consumed, and efficiency im7 provements, at the actual site of energy consumption, or 

8 through the full fuel cycle, beginning at the source of en9 ergy production. The Secretary shall submit the report to 

10 the Congress.

11 TITLE II—OIL AND GAS 

12 Subtitle A—Alaska Natural Gas 

13 Pipeline 

14 SEC. 2001. SHORT TITLE. 

15 This subtitle may be cited as the ‘‘Alaska Natural 

16 Gas Pipeline Act of 2003’’. 

17 SEC. 2002. FINDINGS AND PURPOSES. 

18 (a) FINDINGS.—Congress finds the following: 

19 (1) Construction of a natural gas pipeline sys20 tem from the Alaskan North Slope to United States 

21 markets is in the national interest and will enhance 

22 national energy security by providing access to the 

23 significant gas reserves in Alaska needed to meet the 

24 anticipated demand for natural gas. 

25 (2) The Commission issued a conditional certifi26 cate of public convenience and necessity for the
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1 Alaska natural gas transportation system, which re2 mains in effect. 

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

4 follows: 

5 (1) To provide a statutory framework for the 

6 expedited approval, construction, and initial oper7 ation of an Alaska natural gas transportation 

8 project, as an alternative to the framework provided 

9 in the Alaska Natural Gas Transportation Act of 

10 1976 (15 U.S.C. 719 et seq.), which remains in ef11 fect. 

12 (2) To establish a process for providing access 

13 to such transportation project in order to promote 

14 competition in the exploration, development, and 

15 production of Alaska natural gas. 

16 (3) To clarify Federal authorities under the 

17 Alaska Natural Gas Transportation Act of 1976. 

18 SEC. 2003. DEFINITIONS. 

19 In this subtitle, the following definitions apply: 

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

21 natural gas’’ means natural gas derived from the 

22 area of the State of Alaska lying north of 64 degrees 

23 North latitude. 

24 (2) ALASKA NATURAL GAS TRANSPORTATION

25 PROJECT.—The term ‘‘Alaska natural gas transpor-
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1 tation project’’ means any natural gas pipeline sys2 tem that carries Alaska natural gas to the border 

3 between Alaska and Canada (including related facili4 ties subject to the jurisdiction of the Commission) 

5 that is authorized under either—

6 (A) the Alaska Natural Gas Transpor7 tation Act of 1976 (15 U.S.C. 719 et seq.); or 

8 (B) section 2004. 

9 (3) ALASKA NATURAL GAS TRANSPORTATION

10 SYSTEM.—The term ‘‘Alaska natural gas transpor11 tation system’’ means the Alaska natural gas trans12 portation project authorized under the Alaska Nat13 ural Gas Transportation Act of 1976 and designated 

14 and described in section 2 of the President’s deci15 sion. 

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

17 means the Federal Energy Regulatory Commission. 

18 (5) PRESIDENT’S DECISION.—The term ‘‘Presi19 dent’s decision’’ means the decision and report to 

20 Congress on the Alaska natural gas transportation 

21 system issued by the President on September 22, 

22 1977, pursuant to section 7 of the Alaska Natural 

23 Gas Transportation Act of 1976 (15 U.S.C. 719e) 

24 and approved by Public Law 95–158 (91 Stat. 

25 1268). 
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1 SEC. 2004. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN2 IENCE AND NECESSITY. 

3 (a) AUTHORITY OF THE COMMISSION.—Notwith4 standing the provisions of the Alaska Natural Gas Trans5 portation Act of 1976 (15 U.S.C. 719 et seq.), the Com6 mission may, pursuant to section 7(c) of the Natural Gas 

7 Act (15 U.S.C. 717f(c)), consider and act on an applica8 tion for the issuance of a certificate of public convenience 

9 and necessity authorizing the construction and operation 

10 of an Alaska natural gas transportation project other than 

11 the Alaska natural gas transportation system. 

12 (b) ISSUANCE OF CERTIFICATE.—

13 (1) IN GENERAL.—The Commission shall issue 

14 a certificate of public convenience and necessity au15 thorizing the construction and operation of an Alas16 ka natural gas transportation project under this sec17 tion if the applicant has satisfied the requirements 

18 of section 7(e) of the Natural Gas Act (15 U.S.C. 

19 717f(e)). 

20 (2) CONSIDERATIONS.—In considering an appli21 cation under this section, the Commission shall pre22 sume that—

23 (A) a public need exists to construct and 

24 operate the proposed Alaska natural gas trans25 portation project; and 
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1 (B) sufficient downstream capacity will 

2 exist to transport the Alaska natural gas mov3 ing through such project to markets in the con4 tiguous United States. 

5 (c) EXPEDITED APPROVAL PROCESS.—The Commis6 sion shall issue a final order granting or denying any ap7 plication for a certificate of public convenience and neces8 sity under section 7(c) of the Natural Gas Act (15 U.S.C. 

9 717f(c)) and this section not more than 60 days after the 

10 issuance of the final environmental impact statement for 

11 that project pursuant to section 2005. 

12 (d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—

13 No license, permit, lease, right-of-way, authorization, or 

14 other approval required under Federal law for the con15 struction of any pipeline to transport natural gas from 

16 lands within the Prudhoe Bay oil and gas lease area may 

17 be granted for any pipeline that follows a route that tra18 verses—

19 (1) the submerged lands (as defined by the 

20 Submerged Lands Act) beneath, or the adjacent 

21 shoreline of, the Beaufort Sea; and 

22 (2) enters Canada at any point north of 68 de23 grees North latitude. 

24 (e) OPEN SEASON.—Except where an expansion is 

25 ordered pursuant to section 2006, initial or expansion ca-
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1 pacity on any Alaska natural gas transportation project 

2 shall be allocated in accordance with procedures to be es3 tablished by the Commission in regulations governing the 

4 conduct of open seasons for such project. Such procedures 

5 shall include the criteria for and timing of any open sea6 sons, be consistent with the purposes set forth in section 

7 2002(b)(2), and, for any open season for capacity beyond 

8 the initial capacity, provide the opportunity for the trans9 portation of natural gas other than from the Prudhoe Bay 

10 and Point Thompson units. The Commission shall issue 

11 such regulations not later than 120 days after the date 

12 of enactment of this Act. 

13 (f) PROJECTS IN THE CONTIGUOUS UNITED

14 STATES.—Applications for additional or expanded pipeline 

15 facilities that may be required to transport Alaska natural 

16 gas from Canada to markets in the contiguous United 

17 States may be made pursuant to the Natural Gas Act. 

18 To the extent such pipeline facilities include the expansion 

19 of any facility constructed pursuant to the Alaska Natural 

20 Gas Transportation Act of 1976, the provisions of that 

21 Act shall continue to apply. 

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

23 certificate of public convenience and necessity issued, 

24 modified, or amended by the Commission for an Alaska 

25 natural gas transportation project shall demonstrate that
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1 it has conducted a study of Alaska in-State needs, includ2 ing tie-in points along the Alaska natural gas transpor3 tation project for in-State access. 

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

5 the request of the State of Alaska and after a hearing, 

6 may provide for reasonable access to the Alaska natural 

7 gas transportation project for the State of Alaska or its 

8 designee for the transportation of the State’s royalty gas 

9 for local consumption needs within the State; except that 

10 the rates of existing shippers of subscribed capacity on 

11 such project shall not be increased as a result of such ac12 cess. 

13 (i) REGULATIONS.—The Commission may issue regu14 lations to carry out the provisions of this section. 

15 SEC. 2005. ENVIRONMENTAL REVIEWS. 

16 (a) COMPLIANCE WITH NEPA.—The issuance of a 

17 certificate of public convenience and necessity authorizing 

18 the construction and operation of any Alaska natural gas 

19 transportation project under section 2004 shall be treated 

20 as a major Federal action significantly affecting the qual21 ity of the human environment within the meaning of sec22 tion 102(2)(C) of the National Environmental Policy Act 

23 of 1969 (42 U.S.C. 4332(2)(C)). 

24 (b) DESIGNATION OF LEAD AGENCY.—The Commis25 sion shall be the lead agency for purposes of complying 
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1 with the National Environmental Policy Act of 1969, and 

2 shall be responsible for preparing the statement required 

3 by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) 

4 with respect to an Alaska natural gas transportation 

5 project under section 2004. The Commission shall prepare 

6 a single environmental statement under this section, which 

7 shall consolidate the environmental reviews of all Federal 

8 agencies considering any aspect of the project. 

9 (c) OTHER AGENCIES.—All Federal agencies consid10 ering aspects of the construction and operation of an Alas11 ka natural gas transportation project under section 2004 

12 shall cooperate with the Commission, and shall comply 

13 with deadlines established by the Commission in the prep14 aration of the statement under this section. The statement 

15 prepared under this section shall be used by all such agen16 cies to satisfy their responsibilities under section 

17 102(2)(C) of the National Environmental Policy Act of 

18 1969 (42 U.S.C. 4332(2)(C)) with respect to such project. 

19 (d) EXPEDITED PROCESS.—The Commission shall 

20 issue a draft statement under this section not later than 

21 12 months after the Commission determines the applica22 tion to be complete and shall issue the final statement not 

23 later than 6 months after the Commission issues the draft 

24 statement, unless the Commission for good cause finds 

25 that additional time is needed. 
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1 SEC. 2006. PIPELINE EXPANSION. 

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

3 gas transportation project, upon the request of one or 

4 more persons and after giving notice and an opportunity 

5 for a hearing, the Commission may order the expansion 

6 of such project if it determines that such expansion is re7 quired by the present and future public convenience and 

8 necessity. 

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

10 the Commission shall—

11 (1) approve or establish rates for the expansion 

12 service that are designed to ensure the recovery, on 

13 an incremental or rolled-in basis, of the cost associ14 ated with the expansion (including a reasonable rate 

15 of return on investment); 

16 (2) ensure that the rates as established do not 

17 require existing shippers on the Alaska natural gas 

18 transportation project to subsidize expansion ship19 pers; 

20 (3) find that the proposed shipper will comply 

21 with, and the proposed expansion and the expansion 

22 of service will be undertaken and implemented based 

23 on, terms and conditions consistent with the then-ef24 fective tariff of the Alaska natural gas transpor25 tation project; 
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1 (4) find that the proposed facilities will not ad2 versely affect the financial or economic viability of 

3 the Alaska natural gas transportation project; 

4 (5) find that the proposed facilities will not ad5 versely affect the overall operations of the Alaska 

6 natural gas transportation project; 

7 (6) find that the proposed facilities will not di8 minish the contract rights of existing shippers to 

9 previously subscribed certificated capacity; 

10 (7) ensure that all necessary environmental re11 views have been completed; and 

12 (8) find that adequate downstream facilities 

13 exist or are expected to exist to deliver incremental 

14 Alaska natural gas to market. 

15 (c) REQUIREMENT FOR A FIRM TRANSPORTATION

16 AGREEMENT.—Any order of the Commission issued pur17 suant to this section shall be null and void unless the per18 son or persons requesting the order executes a firm trans19 portation agreement with the Alaska natural gas transpor20 tation project within a reasonable period of time as speci21 fied in such order. 

22 (d) LIMITATION.—Nothing in this section shall be 

23 construed to expand or otherwise affect any authorities of 

24 the Commission with respect to any natural gas pipeline 

25 located outside the State of Alaska. 
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1 (e) REGULATIONS.—The Commission may issue reg2 ulations to carry out the provisions of this section. 

3 SEC. 2007. FEDERAL COORDINATOR. 

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

5 independent office in the executive branch, the Office of 

6 the Federal Coordinator for Alaska Natural Gas Trans7 portation Projects. 

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

9 headed by a Federal Coordinator for Alaska Natural Gas 

10 Transportation Projects, who shall—

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

12 the advice of the Senate; 

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

14 and 

15 (3) be compensated at the rate prescribed for 

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

17 (c) DUTIES.—The Federal Coordinator shall be re18 sponsible for—

19 (1) coordinating the expeditious discharge of all 

20 activities by Federal agencies with respect to an 

21 Alaska natural gas transportation project; and 

22 (2) ensuring the compliance of Federal agencies 

23 with the provisions of this subtitle. 

24 (d) REVIEWS AND ACTIONS OF OTHER FEDERAL

25 AGENCIES.—
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1 (1) EXPEDITED REVIEWS AND ACTIONS.—All 

2 reviews conducted and actions taken by any Federal 

3 officer or agency relating to an Alaska natural gas 

4 transportation project authorized under this section 

5 shall be expedited, in a manner consistent with com6 pletion of the necessary reviews and approvals by the 

7 deadlines set forth in this subtitle. 

8 (2) PROHIBITION ON CERTAIN TERMS AND CON9 DITIONS.—Except with respect to Commission ac10 tions under sections 2004, 2005, and 2006, no Fed11 eral officer or agency shall have the authority to in12 clude terms and conditions that are permitted, but 

13 not required, by law on any certificate, right-of-way, 

14 permit, lease, or other authorization issued to an 

15 Alaska natural gas transportation project if the Fed16 eral Coordinator determines that the terms and con17 ditions would prevent or impair in any significant re18 spect the expeditious construction and operation of 

19 the project. 

20 (3) PROHIBITION ON CERTAIN ACTIONS.—Ex21 cept with respect to Commission actions under sec22 tions 2004, 2005, and 2006, unless required by law, 

23 no Federal officer or agency shall add to, amend, or 

24 abrogate any certificate, right-of-way, permit, lease, 

25 or other authorization issued to an Alaska natural 
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1 gas transportation project if the Federal Coordinator 

2 determines that such action would prevent or impair 

3 in any significant respect the expeditious construc4 tion and operation of the project. 

5 (e) STATE COORDINATION.—The Federal Coordi6 nator shall enter into a Joint Surveillance and Monitoring 

7 Agreement, approved by the President and the Governor 

8 of Alaska, with the State of Alaska similar to that in effect 

9 during construction of the Trans-Alaska Oil Pipeline to 

10 monitor the construction of the Alaska natural gas trans11 portation project. The Federal Government shall have pri12 mary surveillance and monitoring responsibility where the 

13 Alaska natural gas transportation project crosses Federal 

14 lands and private lands, and the State government shall 

15 have primary surveillance and monitoring responsibility 

16 where the Alaska natural gas transportation project 

17 crosses State lands. 

18 (f) TRANSFER OF FEDERAL INSPECTOR FUNCTIONS

19 AND AUTHORITY.—Upon appointment of the Federal Co20 ordinator by the President, all of the functions and au21 thority of the Office of Federal Inspector of Construction 

22 for the Alaska Natural Gas Transportation System vested 

23 in the Secretary of Energy pursuant to section 3012(b) 

24 of Public Law 102–486 (15 U.S.C. 719e(b)), including all 

25 functions and authority described and enumerated in the 
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1 Reorganization Plan No. 1 of 1979 (44 Fed. Reg. 33,663), 

2 Executive Order No. 12142 of June 21, 1979 (44 Fed. 

3 Reg. 36,927), and section 5 of the President’s decision, 

4 shall be transferred to the Federal Coordinator. 

5 SEC. 2008. JUDICIAL REVIEW. 

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

7 the Supreme Court of the United States on writ of certio8 rari, the United States Court of Appeals for the District 

9 of Columbia Circuit shall have original and exclusive juris10 diction to determine—

11 (1) the validity of any final order or action (in12 cluding a failure to act) of any Federal agency or of13 ficer under this subtitle; 

14 (2) the constitutionality of any provision of this 

15 subtitle, or any decision made or action taken under 

16 this subtitle; or 

17 (3) the adequacy of any environmental impact 

18 statement prepared under the National Environ19 mental Policy Act of 1969 with respect to any action 

20 under this subtitle. 

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

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

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

24 claim. 
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1 (c) EXPEDITED CONSIDERATION.—The United 

2 States Court of Appeals for the District of Columbia Cir3 cuit shall set any action brought under subsection (a) for 

4 expedited consideration, taking into account the national 

5 interest as described in section 2002(a). 

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

7 Alaska Natural Gas Transportation Act of 1976 (15 

8 U.S.C. 719h) is amended by inserting after paragraph (1) 

9 the following: 

10 ‘‘(2) The United States Court of Appeals for the Dis11 trict of Columbia Circuit shall set any action brought 

12 under this section for expedited consideration, taking into 

13 account the national interest described in section 2.’’. 

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

15 OF NATURAL GAS. 

16 (a) LOCAL DISTRIBUTION.—Any facility receiving 

17 natural gas from the Alaska natural gas transportation 

18 project for delivery to consumers within the State of Alas19 ka shall be deemed to be a local distribution facility within 

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

21 U.S.C. 717(b)), and therefore not subject to the jurisdic22 tion of the Commission. 

23 (b) ADDITIONAL PIPELINES.—Nothing in this sub24 title, except as provided in section 2004(d), shall preclude 

25 or affect a future gas pipeline that may be constructed 
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1 to deliver natural gas to Fairbanks, Anchorage, 

2 Matanuska-Susitna Valley, or the Kenai peninsula or 

3 Valdez or any other site in the State of Alaska for con4 sumption within or distribution outside the State of Alas5 ka. 

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

7 Gas Act, the Commission shall establish rates for the 

8 transportation of natural gas on the Alaska natural gas 

9 transportation project. In exercising such authority, the 

10 Commission, pursuant to section 17(b) of the Natural Gas 

11 Act (15 U.S.C. 717p(b)), shall confer with the State of 

12 Alaska regarding rates (including rate settlements) appli13 cable to natural gas transported on and delivered from the 

14 Alaska natural gas transportation project for use within 

15 the State of Alaska. 

16 SEC. 2010. STUDY OF ALTERNATIVE MEANS OF CONSTRUC17 TION. 

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

19 the issuance of a certificate or amended certificate of pub20 lic convenience and necessity authorizing the construction 

21 and operation of an Alaska natural gas transportation 

22 project has been filed with the Commission not later than 

23 18 months after the date of enactment of this Act, the 

24 Secretary of Energy shall conduct a study of alternative
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1 approaches to the construction and operation of the 

2 project. 

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

4 feasibility of establishing a Government corporation to 

5 construct an Alaska natural gas transportation project, 

6 and alternative means of providing Federal financing and 

7 ownership (including alternative combinations of Govern8 ment and private corporate ownership) of the project. 

9 (c) CONSULTATION.—In conducting the study, the 

10 Secretary of Energy shall consult with the Secretary of 

11 the Treasury and the Secretary of the Army (acting 

12 through the Commanding General of the Corps of Engi13 neers). 

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

15 to conduct a study under subsection (a), the Secretary 

16 shall submit a report containing the results of the study, 

17 the Secretary’s recommendations, and any proposals for 

18 legislation to implement the Secretary’s recommendations 

19 to Congress. 

20 SEC. 2011. CLARIFICATION OF ANGTA STATUS AND AU21 THORITIES. 

22 (a) SAVINGS CLAUSE.—Nothing in this subtitle af23 fects any decision, certificate, permit, right-of-way, lease, 

24 or other authorization issued under section 9 of the Alaska 

25 Natural Gas Transportation Act of 1976 (15 U.S.C. 
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1 719g) or any Presidential findings or waivers issued in 

2 accordance with that Act. 

3 (b) CLARIFICATION OF AUTHORITY TO AMEND

4 TERMS AND CONDITIONS TO MEET CURRENT PROJECT

5 REQUIREMENTS.—Any Federal officer or agency respon6 sible for granting or issuing any certificate, permit, right7 of-way, lease, or other authorization under section 9 of 

8 the Alaska Natural Gas Transportation Act of 1976 (15 

9 U.S.C. 719g) may add to, amend, or abrogate any term 

10 or condition included in such certificate, permit, right-of11 way, lease, or other authorization to meet current project 

12 requirements (including the physical design, facilities, and 

13 tariff specifications), so long as such action does not com14 pel a change in the basic nature and general route of the 

15 Alaska natural gas transportation system as designated 

16 and described in section 2 of the President’s decision, or 

17 would otherwise prevent or impair in any significant re18 spect the expeditious construction and initial operation of 

19 such transportation system. 

20 (c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec21 retary of Energy shall require the sponsor of the Alaska 

22 natural gas transportation system to submit such updated 

23 environmental data, reports, permits, and impact analyses 

24 as the Secretary determines are necessary to develop de-
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1 tailed terms, conditions, and compliance plans required by 

2 section 5 of the President’s decision. 

3 SEC. 2012. SENSE OF CONGRESS. 

4 It is the sense of Congress that an Alaska natural 

5 gas transportation project will provide significant eco6 nomic benefits to the United States and Canada. In order 

7 to maximize those benefits, Congress urges the sponsors 

8 of the pipeline project to make every effort to use steel 

9 that is manufactured or produced in North America and 

10 to negotiate a project labor agreement to expedite con11 struction of the pipeline. 

12 SEC. 2013. PARTICIPATION OF SMALL BUSINESS CON13 CERNS. 

14 (a) SENSE OF CONGRESS.—It is the sense of Con15 gress that an Alaska natural gas transportation project 

16 will provide significant economic benefits to the United 

17 States and Canada. In order to maximize those benefits, 

18 Congress urges the sponsors of the pipeline project to 

19 maximize the participation of small business concerns in 

20 contracts and subcontracts awarded in carrying out the 

21 project. 

22 (b) STUDY.—

23 (1) IN GENERAL.—The Comptroller General 

24 shall conduct a study on the extent to which small 
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1 business concerns participate in the construction of 

2 oil and gas pipelines in the United States. 

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

4 date of enactment of this Act, the Comptroller Gen5 eral shall transmit to Congress a report containing 

6 the results of the study. 

7 (3) UPDATES.—The Comptroller General shall 

8 update the study at least once every 5 years and 

9 transmit to Congress a report containing the results 

10 of the update. 

11 (4) APPLICABILITY.—After the date of comple12 tion of the construction of an Alaska natural gas 

13 transportation project, this subsection shall no 

14 longer apply. 

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

16 section, the term ‘‘small business concern’’ has the mean17 ing given such term in section 3(a) of the Small Business 

18 Act (15 U.S.C. 632(a)). 

19 SEC. 2014. ALASKA PIPELINE CONSTRUCTION TRAINING 

20 PROGRAM. 

21 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

22 of Labor (in this section referred to as the ‘‘Secretary’’) 

23 may make grants to the Alaska Department of Labor and 

24 Workforce Development to—
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1 (1) develop a plan to train, through the work2 force investment system established in the State of 

3 Alaska under the Workforce Investment Act of 1998 

4 (112 Stat. 936 et seq.), adult and dislocated work5 ers, including Alaska Natives, in urban and rural 

6 Alaska in the skills required to construct and oper7 ate an Alaska gas pipeline system; and 

8 (2) implement the plan developed pursuant to 

9 paragraph (1). 

10 (b) REQUIREMENTS FOR PLANNING GRANTS.—The 

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

12 if—

13 (1) the Governor of Alaska certifies in writing 

14 to the Secretary that there is a reasonable expecta15 tion that construction of an Alaska gas pipeline will 

16 commence within 3 years after the date of such cer17 tification; and 

18 (2) the Secretary of the Interior concurs in 

19 writing to the Secretary with the certification made 

20 under paragraph (1). 

21 (c) REQUIREMENTS FOR IMPLEMENTATION

22 GRANTS.—The Secretary may make a grant under sub23 section (a)(2) only if—

24 (1) the Secretary has approved a plan developed 

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

2 funds and certifies in writing to the Secretary that 

3 there is a reasonable expectation that the construc4 tion of an Alaska gas pipeline system will commence 

5 within 2 years after the date of such certification; 

6 (3) the Secretary of the Interior concurs in 

7 writing to the Secretary with the certification made 

8 under paragraph (2) after considering—

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

11 (B) the availability of financing for the 

12 pipeline project; and 

13 (C) other relevant factors and cir14 cumstances. 

15 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated to the Secretary of 

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

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

19 Subtitle B—Strategic Petroleum 

20 Reserve 

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

23 The President shall— 

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

2 seq.) to full capacity as soon as practicable; 

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

7 of crude oil the United States is entitled to receive 

8 in kind as royalties from production on Federal 

9 lands; and 

10 (3) ensure that the fill rate minimizes impacts 

11 on petroleum markets. 

12 SEC. 2102. STRATEGIC PETROLEUM RESERVE EXPANSION. 

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

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

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

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

18 (1) plans for the elimination of infrastructure 

19 impediments to maximum drawdown capability; 

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

21 environmental reviews; 

22 (3) provision for consultation with Federal and 

23 State environmental agencies; 

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

25 and 
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1 (5) anticipated annual budget requests. 

2 (b) CONSTRUCTION OF ADDITIONAL CAPACITY.—The 

3 Secretary of Energy shall acquire property and complete 

4 construction for the expansion of the Strategic Petroleum 

5 Reserve in accordance with the plan transmitted under 

6 subsection (a). 

7 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

8 are authorized to be appropriated to the Secretary of En9 ergy $1,500,000,000 for carrying out this section, to re10 main available until expended.

11 SEC. 2103. PERMANENT AUTHORITY TO OPERATE THE 

12 STRATEGIC PETROLEUM RESERVE AND 

13 OTHER ENERGY PROGRAMS. 

14 (a) AMENDMENT TO TITLE I OF THE ENERGY POL15 ICY AND CONSERVATION ACT.—Title I of the Energy Pol16 icy and Conservation Act (42 U.S.C. 6211 et seq.) is 

17 amended—

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

19 and inserting—

20 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

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

23 out this part and part D, to remain available until ex24 pended.’’; 

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

26 and 
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1 (3) by striking part E (42 U.S.C. 6251; relat2 ing to the expiration of title I of the Act). 

3 (b) AMENDMENT TO TITLE II OF THE ENERGY POL4 ICY AND CONSERVATION ACT.—Title II of the Energy 

5 Policy and Conservation Act (42 U.S.C. 6271 et seq.) is 

6 amended—

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

8 6283) the following: 

9 ‘‘PART C—SUMMER FILL AND FUEL BUDGETING

10 PROGRAMS’’;

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

12 6283(e); relating to the expiration of summer fill 

13 and fuel budgeting programs); and 

14 (3) by striking part D (42 U.S.C. 6285; relat15 ing to the expiration of title II of the Act). 

16 (c) TECHNICAL AMENDMENTS.—The table of con17 tents for the Energy Policy and Conservation Act is 

18 amended—

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

20 C of title I the following:

‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE

‘‘Sec. 181. Establishment. 

‘‘Sec. 182. Authority. 

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

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

‘‘Sec. 185. Exemptions.’’;

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

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

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

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

2 title II. 

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

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

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

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

8 Subtitle C—Hydraulic Fracturing 

9 SEC. 2201. HYDRAULIC FRACTURING. 

10 Paragraph (1) of section 1421(d) of the Safe Drink11 ing Water Act (42 U.S.C. 300h(d)) is amended to read 

12 as follows: 

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

14 ‘‘(A) means the subsurface emplacement of 

15 fluids by well injection; and 

16 ‘‘(B) excludes—

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

19 ‘‘(ii) the underground injection of 

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

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

3 Program 

4 SEC. 2301. PROGRAM. 

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

7 gas reserves from reservoirs described in section 2302. 

8 SEC. 2302. ELIGIBLE RESERVOIRS. 

9 The program under this subtitle shall only address 

10 oil and natural gas reservoirs with 1 or more of the fol11 lowing characteristics: 

12 (1) Complex geology involving rapid changes in 

13 the type and quality of the oil reservoir across the 

14 reservoir. 

15 (2) Low reservoir pressure. 

16 (3) Unconventional natural gas reservoirs in 

17 coalbeds, tight sands, or shales. 

18 SEC. 2303. FOCUS AREAS. 

19 The program under this subtitle may focus on areas 

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

22 shales, innovative production techniques (including hori23 zontal drilling, fracture detection methodologies, and 

24 three-dimensional seismic), and enhanced recovery tech25 niques. 
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1 SEC. 2304. LIMITATION ON LOCATION OF ACTIVITIES. 

2 Activities under this subtitle shall be carried out 

3 only—

4 (1) in—

5 (A) areas onshore in the United States on 

6 public land administered by the Secretary of the 

7 Interior available for oil and gas leasing, where 

8 consistent with applicable law and land use 

9 plans; and 

10 (B) areas onshore in the United States on 

11 State or private land, subject to applicable law; 

12 and 

13 (2) with the approval of the appropriate Fed14 eral or State land management agency or private 

15 land owner. 

16 SEC. 2305. PROGRAM ADMINISTRATION. 

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

18 have ultimate responsibility for, and oversight of, all as19 pects of the program under this subtitle. 

20 (b) ROLE OF THE PROGRAM CONSORTIUM.—

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

22 with a consortium to—

23 (A) manage awards pursuant to subsection 

24 (e)(4); 

25 (B) make recommendations to the Sec26 retary for project solicitations; 
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1 (C) disburse funds awarded under sub2 section (e) as directed by the Secretary in ac3 cordance with the annual plan under subsection 

4 (d); and 

5 (D) carry out other activities assigned to 

6 the program consortium by this section. 

7 (2) LIMITATION.—The Secretary may not as8 sign any activities to the program consortium except 

9 as specifically authorized under this section. 

10 (3) CONFLICT OF INTEREST.—(A) The Sec11 retary shall establish procedures—

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

14 who is in a decisionmaking capacity under sub15 section (e)(3) or (4) shall disclose to the Sec16 retary any financial interests in, or financial re17 lationships with, applicants for or recipients of 

18 awards under this section, including those of 

19 his or her spouse or minor child, unless such re20 lationships or interests would be considered to 

21 be remote or inconsequential; and 

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

23 or employee with a financial relationship or in24 terest disclosed under clause (i) to recuse him25 self or herself from any review under subsection 
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1 (e)(3) or oversight under subsection (e)(4) with 

2 respect to such applicant or recipient. 

3 (B) The Secretary may disqualify an applica4 tion or revoke an award under this section if a board 

5 member, officer, or employee has failed to comply 

6 with procedures required under subparagraph 

7 (A)(ii). 

8 (c) SELECTION OF THE PROGRAM CONSORTIUM.—

9 (1) IN GENERAL.—The Secretary shall select 

10 the program consortium through an open, competi11 tive process. 

12 (2) MEMBERS.—The program consortium may 

13 include corporations and institutions of higher edu14 cation. The Secretary shall give preference in the se15 lection of the program consortium to applicants with 

16 broad representation from the various major oil and 

17 natural gas basins in the United States. After sub18 mitting a proposal under paragraph (4), the pro19 gram consortium may not add members without the 

20 consent of the Secretary. 

21 (3) TAX STATUS.—The program consortium 

22 shall be an entity that is exempt from tax under sec23 tion 501(c)(3) of the Internal Revenue Code of 

24 1986. 
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1 (4) SCHEDULE.—Not later than 90 days after 

2 the date of enactment of this Act, the Secretary 

3 shall solicit proposals for the creation of the pro4 gram consortium, which must be submitted not less 

5 than 180 days after the date of enactment of this 

6 Act. The Secretary shall select the program consor7 tium not later than 240 days after such date of en8 actment. 

9 (5) APPLICATION.—Applicants shall submit a 

10 proposal including such information as the Secretary 

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

12 (A) list all members of the consortium; 

13 (B) fully describe the structure of the con14 sortium, including any provisions relating to in15 tellectual property; and 

16 (C) describe how the applicant would carry 

17 out the activities of the program consortium 

18 under this section. 

19 (6) ELIGIBILITY.—To be eligible to be selected 

20 as the program consortium, an applicant must be an 

21 entity whose members collectively have demonstrated 

22 capabilities in planning and managing programs for 

23 the production of oil or natural gas. 

24 (7) CRITERION.—The Secretary may consider 

25 the amount of the fee an applicant proposes to re-
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1 ceive under subsection (f) in selecting a consortium 

2 under this section. 

3 (d) ANNUAL PLAN.—

4 (1) IN GENERAL.—The program under this 

5 subtitle shall be carried out pursuant to an annual 

6 plan prepared by the Secretary in accordance with 

7 paragraph (2). 

8 (2) DEVELOPMENT.—(A) Before drafting an 

9 annual plan under this subsection, the Secretary 

10 shall solicit specific written recommendations from 

11 the program consortium for each element to be ad12 dressed in the plan, including those described in 

13 paragraph (4). The Secretary may request that the 

14 program consortium submit its recommendations in 

15 the form of a draft annual plan. 

16 (B) The Secretary shall submit the rec17 ommendations of the program consortium under 

18 subparagraph (A) to the Advisory Committee for re19 view, and the Advisory Committee shall provide to 

20 the Secretary written comments by a date deter21 mined by the Secretary. The Secretary may also so22 licit comments from any other experts. 

23 (C) The Secretary shall consult regularly with 

24 the program consortium throughout the preparation 

25 of the annual plan.
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1 (3) PUBLICATION.—The Secretary shall trans2 mit to the Congress and publish in the Federal Reg3 ister the annual plan, along with any written com4 ments received under paragraph (2)(A) and (B). 

5 The annual plan shall be transmitted and published 

6 not later than 60 days after the date of enactment 

7 of an Act making appropriations for a fiscal year for 

8 the program under this subtitle. 

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

10 the ongoing and prospective activities of the pro11 gram under this subtitle and shall include—

12 (A) a list of any solicitations for awards 

13 that the Secretary plans to issue to carry out 

14 activities, including the topics for such work, 

15 who would be eligible to apply, selection cri16 teria, and the duration of awards; and 

17 (B) a description of the activities expected 

18 of the program consortium to carry out sub19 section (e)(4). 

20 (e) AWARDS.—

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

22 awards to carry out activities under the program 

23 under this subtitle. The program consortium shall 

24 not be eligible to receive such awards, but members 

25 of the program consortium may receive such awards. 
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1 (2) PROPOSALS.—

2 (A) SOLICITATION.—The Secretary shall 

3 solicit proposals for awards under this sub4 section in such manner and at such time as the 

5 Secretary may prescribe, in consultation with 

6 the program consortium. 

7 (B) CONTENTS.—Each proposal submitted 

8 shall include the following: 

9 (i) An estimate of the potential 

10 unproven reserves in the reservoir, estab11 lished by a registered petroleum engineer. 

12 (ii) An estimate of the potential for 

13 success of the project. 

14 (iii) A detailed project plan. 

15 (iv) A detailed analysis of the costs 

16 associated with the project. 

17 (v) A time frame for project comple18 tion. 

19 (vi) Evidence that any lienholder on 

20 the project will subordinate its interests to 

21 the extent necessary to ensure that the 

22 Federal government receives its portion of 

23 any revenues pursuant to section 2308. 

24 (vii) Such other matters as the Sec25 retary considers appropriate. 
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1 (3) REVIEW.—The Secretary shall make awards 

2 under this subsection through a competitive process, 

3 which shall include a review by individuals selected 

4 by the Secretary. Such individuals shall include, for 

5 each application, Federal officials, the program con6 sortium, and non-Federal experts who are not board 

7 members, officers, or employees of the program con8 sortium or of a member of the program consortium. 

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

10 shall oversee the implementation of awards under 

11 this subsection, consistent with the annual plan 

12 under subsection (d), including disbursing funds and 

13 monitoring activities carried out under such awards 

14 for compliance with the terms and conditions of the 

15 awards. 

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

17 authority or responsibility of the Secretary to over18 see awards, or limit the authority of the Secretary 

19 to review or revoke awards. 

20 (C) The Secretary shall provide to the program 

21 consortium the information necessary for the pro22 gram consortium to carry out its responsibilities 

23 under this paragraph. 

24 (f) FEE.—To compensate the program consortium 

25 for carrying out its activities under this section, the Sec-
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1 retary shall provide to the program consortium a fee in 

2 an amount not to exceed 7.5 percent of the amounts 

3 awarded under subsection (e) for each fiscal year. 

4 (g) DISALLOWED EXPENSES.—No portion of any 

5 award shall be used by a recipient for general or adminis6 trative expenses of any kind. 

7 (h) AUDIT.—The Secretary shall retain an inde8 pendent, commercial auditor to determine the extent to 

9 which funds provided to the program consortium, and 

10 funds provided under awards made under subsection (e), 

11 have been expended in a manner consistent with the pur12 poses and requirements of this subtitle. The auditor shall 

13 transmit a report annually to the Secretary, who shall 

14 transmit the report to Congress, along with a plan to rem15 edy any deficiencies cited in the report. 

16 SEC. 2306. ADVISORY COMMITTEE. 

17 (a) ESTABLISHMENT.—Not later than 270 days after 

18 the date of enactment of this Act, the Secretary shall es19 tablish an Advisory Committee. 

20 (b) MEMBERSHIP.—The Advisory Committee shall be 

21 composed of members appointed by the Secretary and in22 cluding—

23 (1) individuals with extensive experience or 

24 operational knowledge of oil and natural gas produc25 tion, including independent oil and gas producers; 
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1 (2) individuals broadly representative of oil and 

2 natural gas production; and 

3 (3) no individuals who are Federal employees. 

4 (c) DUTIES.—The Advisory Committee shall advise 

5 the Secretary on the development and implementation of 

6 activities under this subtitle. 

7 (d) COMPENSATION.—A member of the Advisory 

8 Committee shall serve without compensation but shall re9 ceive travel expenses, including per diem in lieu of subsist10 ence, in accordance with applicable provisions under sub11 chapter I of chapter 57 of title 5, United States Code. 

12 (e) PROHIBITION.—The Advisory Committee shall 

13 not make recommendations on funding awards to con14 sortia or for specific projects. 

15 SEC. 2307. LIMITS ON PARTICIPATION. 

16 An entity shall be eligible to receive an award under 

17 this subtitle only if the Secretary finds—

18 (1) that the entity’s participation in the pro19 gram under this subtitle would be in the economic 

20 interest of the United States; 

21 (2) that the entity is a United States-owned en22 tity organized under the laws of the United States 

23 with production levels of less than 1,000 barrels per 

24 day of oil equivalent; and
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1 (3) that the entity has demonstrated that non2 governmental third party sources of financing are 

3 not available for the proposal project. 

4 SEC. 2308. PAYMENTS TO FEDERAL GOVERNMENT. 

5 (a) INITIAL RATE.—Until the amount of a grant 

6 under this subtitle has been fully repaid to the Federal 

7 Government under this subsection, 95 percent of all reve8 nues derived from increased incremental production at9 tributable to participation in the program under this sub10 title shall be paid to the Secretary by the purchaser of 

11 such increased production. 

12 (b) RATE AFTER REPAYMENT.—After the Federal 

13 Government has been fully repaid under subsection (a), 

14 5 percent of all revenues derived from increased incre15 mental production attributable to participation in the pro16 gram under this subtitle shall be paid to the Secretary 

17 by the purchaser of such increased production. 

18 SEC. 2309. AUTHORIZATION OF APPROPRIATIONS. 

19 There are authorized to be appropriated to the Sec20 retary for carrying out this subtitle $100,000,000, to re21 main available until expended. 

22 SEC. 2310. PUBLIC AVAILABILITY OF PROJECT RESULTS 

23 AND METHODOLOGIES. 

24 The results of any project undertaken pursuant to 

25 this subtitle and the methodologies used to achieve those 
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1 results shall be made public by the Secretary. The meth2 odologies used shall not be proprietary so that such meth3 odologies may be used for other projects by persons not 

4 seeking awards pursuant to this subtitle. 

5 SEC. 2311. SUNSET. 

6 The authority provided by this subtitle shall termi7 nate on September 30, 2010. 

8 SEC. 2312. DEFINITIONS. 

9 In this subtitle: 

10 (1) PROGRAM CONSORTIUM.—The term ‘‘pro11 gram consortium’’ means the consortium selected 

12 under section 2305(c). 

13 (2) REMOTE OR INCONSEQUENTIAL.—The term 

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

15 that term in regulations issued by the Office of Gov16 ernment Ethics under section 208(b)(2) of title 18, 

17 United States Code. 

18 (3) SECRETARY.—The term ‘‘Secretary’’ means 

19 the Secretary of Energy.

20 Subtitle E—Miscellaneous 

21 SEC. 2401. APPEALS RELATING TO PIPELINE CONSTRUC22 TION PROJECTS. 

23 (a) AGENCY OF RECORD.—Any Federal administra24 tive agency proceeding that is an appeal or review of Fed25 eral authority for an interstate natural gas pipeline con-
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1 struction project, including construction of natural gas 

2 storage and liquefied natural gas facilities, shall use as 

3 its exclusive record for all purposes the record compiled 

4 by the Federal Energy Regulatory Commission pursuant 

5 to such Commission’s proceeding under section 7 of the 

6 Natural Gas Act. 

7 (b) SENSE OF THE CONGRESS.—It is the sense of 

8 the Congress that all Federal and State agencies with ju9 risdiction over interstate natural gas pipeline construction 

10 activities should coordinate their proceedings within the 

11 time frames established by the Federal Energy Regulatory 

12 Commission while it is acting pursuant to section 7 of the 

13 Natural Gas Act to determine whether a proposed inter14 state natural gas pipeline is in the public convenience and 

15 necessity. 

16 SEC. 2402. NATURAL GAS MARKET DATA TRANSPARENCY. 

17 (a) ESTABLISHMENT OF SYSTEM.—Not later than 

18 180 days after the date of enactment of this Act, the Fed19 eral Energy Regulatory Commission shall issue rules au20 thorizing or establishing an electronic information system 

21 to provide the Commission and the public with timely ac22 cess to such information as is necessary or appropriate 

23 to facilitate price transparency and participation in nat24 ural gas markets. Such system shall provide information 
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1 about the market price of natural gas sold in interstate 

2 commerce. 

3 (b) DATA SUBJECT TO DISCLOSURE.—Rules issued 

4 under subsection (a) shall require public availability only 

5 of—

6 (1) aggregate data; and 

7 (2) transaction-specific data that is otherwise 

8 required by the Federal Energy Regulatory Commis9 sion to be made public. 

10 (c) CIVIL PENALTY.—Any person who violates any 

11 provision of a rule issued under subsection (a) shall be 

12 subject to a civil penalty of not more than $1,000,000 for 

13 each day that such violation continues. Such penalty shall 

14 be assessed by the Federal Energy Regulatory Commis15 sion, after notice and opportunity for public hearing. In 

16 determining the amount of a proposed penalty, the Com17 mission shall take into consideration the seriousness of the 

18 violation and the efforts of such person to remedy the vio19 lation in a timely manner. 

20 SEC. 2403. OIL AND GAS EXPLORATION AND PRODUCTION 

21 DEFINED. 

22 Section 502 of the Federal Water Pollution Control 

23 Act (33 U.S.C. 1362) is amended by adding at the end 

24 the following:
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1 ‘‘(21) The term ‘oil and gas exploration and produc2 tion’ means all field operations necessary for both explo3 ration and production of oil and gas, including activities 

4 necessary to prepare a site for drilling and for the move5 ment and placement of drilling equipment, whether or not 

6 such activities may be considered construction activities.’’.

7 TITLE III—HYDROELECTRIC 

8 RELICENSING 

9 Subtitle A—Alternative Conditions 

10 SEC. 3001. ALTERNATIVE CONDITIONS AND FISHWAYS. 

11 (a) FEDERAL RESERVATIONS.—Section 4(e) of the 

12 Federal Power Act (16 U.S.C. 797(e)) is amended by in13 serting after ‘‘adequate protection and utilization of such 

14 reservation.’’ at the end of the first proviso the following: 

15 ‘‘The license applicant shall be entitled to a determination 

16 on the record, after opportunity for an agency trial-type 

17 hearing of any disputed issues of material fact, with re18 spect to such conditions.’’. 

19 (b) FISHWAYS.—Section 18 of the Federal Power Act 

20 (16 U.S.C. 811) is amended by inserting after ‘‘and such 

21 fishways as may be prescribed by the Secretary of Com22 merce.’’ the following: ‘‘The license applicant shall be enti23 tled to a determination on the record, after opportunity 

24 for an agency trial-type hearing of any disputed issues of 

25 material fact, with respect to such fishways.’’.
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1 (c) ALTERNATIVE CONDITIONS AND PRESCRIP2 TIONS.—Part I of the Federal Power Act (16 U.S.C. 791a 

3 et seq.) is amended by adding the following new section 

4 at the end thereof: 

5 ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 

6 ‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 

7 person applies for a license for any project works within 

8 any reservation of the United States, and the Secretary 

9 of the department under whose supervision such reserva10 tion falls (referred to in this subsection as ‘the Secretary’) 

11 deems a condition to such license to be necessary under 

12 the first proviso of section 4(e), the license applicant may 

13 propose an alternative condition. 

14 ‘‘(2) Notwithstanding the first proviso of section 4(e), 

15 the Secretary shall accept the proposed alternative condi16 tion referred to in paragraph (1), and the Commission 

17 shall include in the license such alternative condition, if 

18 the Secretary determines, based on substantial evidence 

19 provided by the license applicant or otherwise available to 

20 the Secretary, that such alternative condition—

21 ‘‘(A) provides for the adequate protection and 

22 utilization of the reservation; and 

23 ‘‘(B) will either—

24 ‘‘(i) cost less to implement; or 
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1 ‘‘(ii) result in improved operation of the 

2 project works for electricity production, 

3 as compared to the condition initially deemed nec4 essary by the Secretary. 

5 ‘‘(3) The Secretary shall submit into the public 

6 record of the Commission proceeding with any condition 

7 under section 4(e) or alternative condition it accepts under 

8 this section, a written statement explaining the basis for 

9 such condition, and reason for not accepting any alter10 native condition under this section. The written statement 

11 must demonstrate that the Secretary gave equal consider12 ation to the effects of the condition adopted and alter13 natives not accepted on energy supply, distribution, cost, 

14 and use; flood control; navigation; water supply; and air 

15 quality (in addition to the preservation of other aspects 

16 of environmental quality); based on such information as 

17 may be available to the Secretary, including information 

18 voluntarily provided in a timely manner by the applicant 

19 and others. The Secretary shall also submit, together with 

20 the aforementioned written statement, all studies, data, 

21 and other factual information available to the Secretary 

22 and relevant to the Secretary’s decision. 

23 ‘‘(4) Nothing in this section shall prohibit other inter24 ested parties from proposing alternative conditions. 
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1 ‘‘(5) If the Secretary does not accept an applicant’s 

2 alternative condition under this section, and the Commis3 sion finds that the Secretary’s condition would be incon4 sistent with the purposes of this part, or other applicable 

5 law, the Commission may refer the dispute to the Commis6 sion’s Dispute Resolution Service. The Dispute Resolution 

7 Service shall consult with the Secretary and the Commis8 sion and issue a non-binding advisory within 90 days. The 

9 Secretary may accept the Dispute Resolution Service advi10 sory unless the Secretary finds that the recommendation 

11 will not adequately protect the reservation. The Secretary 

12 shall submit the advisory and the Secretary’s final written 

13 determination into the record of the Commission’s pro14 ceeding. 

15 ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 

16 the Secretary of the Interior or the Secretary of Commerce 

17 prescribes a fishway under section 18, the license appli18 cant or licensee may propose an alternative to such pre19 scription to construct, maintain, or operate a fishway. The 

20 alternative may include a fishway or an alternative to a 

21 fishway. 

22 ‘‘(2) Notwithstanding section 18, the Secretary of the 

23 Interior or the Secretary of Commerce, as appropriate, 

24 shall accept and prescribe, and the Commission shall re25 quire, the proposed alternative referred to in paragraph 
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1 (1), if the Secretary of the appropriate department deter2 mines, based on substantial evidence provided by the li3 censee or otherwise available to the Secretary, that such 

4 alternative—

5 ‘‘(A) will be no less protective of the fish re6 sources than the fishway initially prescribed by the 

7 Secretary; and 

8 ‘‘(B) will either—

9 ‘‘(i) cost less to implement; or 

10 ‘‘(ii) result in improved operation of the 

11 project works for electricity production, 

12 as compared to the fishway initially deemed nec13 essary by the Secretary. 

14 ‘‘(3) The Secretary concerned shall submit into the 

15 public record of the Commission proceeding with any pre16 scription under section 18 or alternative prescription it ac17 cepts under this section, a written statement explaining 

18 the basis for such prescription, and reason for not accept19 ing any alternative prescription under this section. The 

20 written statement must demonstrate that the Secretary 

21 gave equal consideration to the effects of the condition 

22 adopted and alternatives not accepted on energy supply, 

23 distribution, cost, and use; flood control; navigation; water 

24 supply; and air quality (in addition to the preservation of 

25 other aspects of environmental quality); based on such in-
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1 formation as may be available to the Secretary, including 

2 information voluntarily provided in a timely manner by the 

3 applicant and others. The Secretary shall also submit, to4 gether with the aforementioned written statement, all 

5 studies, data, and other factual information available to 

6 the Secretary and relevant to the Secretary’s decision. 

7 ‘‘(4) Nothing in this section shall prohibit other inter8 ested parties from proposing alternative prescriptions. 

9 ‘‘(5) If the Secretary concerned does not accept an 

10 applicant’s alternative prescription under this section, and 

11 the Commission finds that the Secretary’s prescription 

12 would be inconsistent with the purposes of this part, or 

13 other applicable law, the Commission may refer the dis14 pute to the Commission’s Dispute Resolution Service. The 

15 Dispute Resolution Service shall consult with the Sec16 retary and the Commission and issue a non-binding advi17 sory within 90 days. The Secretary may accept the Dis18 pute Resolution Service advisory unless the Secretary 

19 finds that the recommendation will not adequately protect 

20 the fish resources. The Secretary shall submit the advisory 

21 and the Secretary’s final written determination into the 

22 record of the Commission’s proceeding.’’.
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1 Subtitle B—Additional Hydropower 

2 SEC. 3201. HYDROELECTRIC PRODUCTION INCENTIVES. 

3 (a) INCENTIVE PAYMENTS.—For electric energy gen4 erated and sold by a qualified hydroelectric facility during 

5 the incentive period, the Secretary of Energy (referred to 

6 in this section as the ‘‘Secretary’’) shall make, subject to 

7 the availability of appropriations, incentive payments to 

8 the owner or operator of such facility. The amount of such 

9 payment made to any such owner or operator shall be as 

10 determined under subsection (e) of this section. Payments 

11 under this section may only be made upon receipt by the 

12 Secretary of an incentive payment application which estab13 lishes that the applicant is eligible to receive such payment 

14 and which satisfies such other requirements as the Sec15 retary deems necessary. Such application shall be in such 

16 form, and shall be submitted at such time, as the Sec17 retary shall establish. 

18 (b) DEFINITIONS.—For purposes of this section: 

19 (1) QUALIFIED HYDROELECTRIC FACILITY.—

20 The term ‘‘qualified hydroelectric facility’’ means a 

21 turbine or other generating device owned or solely 

22 operated by a non-Federal entity which generates 

23 hydroelectric energy for sale and which is added to 

24 an existing dam or conduit. 
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1 (2) EXISTING DAM OR CONDUIT.—The term 

2 ‘‘existing dam or conduit’’ means any dam or con3 duit the construction of which was completed before 

4 the date of the enactment of this section and which 

5 does not require any construction or enlargement of 

6 impoundment or diversion structures (other than re7 pair or reconstruction) in connection with the instal8 lation of a turbine or other generating device. 

9 (3) CONDUIT.—The term ‘‘conduit’’ has the 

10 same meaning as when used in section 30(a)(2) of 

11 the Federal Power Act. 

12 The terms defined in this subsection shall apply without 

13 regard to the hydroelectric kilowatt capacity of the facility 

14 concerned, without regard to whether the facility uses a 

15 dam owned by a governmental or nongovernmental entity, 

16 and without regard to whether the facility begins oper17 ation on or after the date of the enactment of this section. 

18 (c) ELIGIBILITY WINDOW.—Payments may be made 

19 under this section only for electric energy generated from 

20 a qualified hydroelectric facility which begins operation 

21 during the period of 10 fiscal years beginning with the 

22 first full fiscal year occurring after the date of enactment 

23 of this subtitle. 

24 (d) INCENTIVE PERIOD.—A qualified hydroelectric 

25 facility may receive payments under this section for a pe-
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1 riod of 10 fiscal years (referred to in this section as the 

2 ‘‘incentive period’’). Such period shall begin with the fiscal 

3 year in which electric energy generated from the facility 

4 is first eligible for such payments. 

5 (e) AMOUNT OF PAYMENT.—

6 (1) IN GENERAL.—Payments made by the Sec7 retary under this section to the owner or operator of 

8 a qualified hydroelectric facility shall be based on 

9 the number of kilowatt hours of hydroelectric energy 

10 generated by the facility during the incentive period. 

11 For any such facility, the amount of such payment 

12 shall be 1.8 cents per kilowatt hour (adjusted as 

13 provided in paragraph (2)), subject to the avail14 ability of appropriations under subsection (g), except 

15 that no facility may receive more than $750,000 in 

16 one calendar year. 

17 (2) ADJUSTMENTS.—The amount of the pay18 ment made to any person under this section as pro19 vided in paragraph (1) shall be adjusted for inflation 

20 for each fiscal year beginning after calendar year 

21 2003 in the same manner as provided in the provi22 sions of section 29(d)(2)(B) of the Internal Revenue 

23 Code of 1986, except that in applying such provi24 sions the calendar year 2003 shall be substituted for 

25 calendar year 1979. 
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1 (f) SUNSET.—No payment may be made under this 

2 section to any qualified hydroelectric facility after the ex3 piration of the period of 20 fiscal years beginning with 

4 the first full fiscal year occurring after the date of enact5 ment of this subtitle, and no payment may be made under 

6 this section to any such facility after a payment has been 

7 made with respect to such facility for a period of 10 fiscal 

8 years. 

9 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Secretary to carry 

11 out the purposes of this section $10,000,000 for each of 

12 the fiscal years 2004 through 2013. 

13 SEC. 3202. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 

14 (a) INCENTIVE PAYMENTS.—The Secretary of En15 ergy shall make incentive payments to the owners or oper16 ators of hydroelectric facilities at existing dams to be used 

17 to make capital improvements in the facilities that are di18 rectly related to improving the efficiency of such facilities 

19 by at least 3 percent. 

20 (b) LIMITATIONS.—Incentive payments under this 

21 section shall not exceed 10 percent of the costs of the cap22 ital improvement concerned and not more than one pay23 ment may be made with respect to improvements at a sin24 gle facility. No payment in excess of $750,000 may be 

25 made with respect to improvements at a single facility. 
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1 (c) AUTHORIZATION.—There is authorized to be ap2 propriated to carry out this section not more than 

3 $10,000,000 for each of the fiscal years 2004 through 

4 2013. 

5 SEC. 3203. SMALL HYDROELECTRIC POWER PROJECTS. 

6 Section 408(a)(6) of the Public Utility Regulatory 

7 Policies Act of 1978 is amended by striking ‘‘April 20, 

8 1977’’ and inserting ‘‘March 4, 2003’’. 

9 SEC. 3204. INCREASED HYDROELECTRIC GENERATION AT 

10 EXISTING FEDERAL FACILITIES. 

11 (a) IN GENERAL.—The Secretary of Energy, in con12 sultation with the Secretary of the Interior and Secretary 

13 of the Army, shall conduct studies of the cost-effective op14 portunities to increase hydropower generation at existing 

15 federally-owned or operated water regulation, storage, and 

16 conveyance facilities. Such studies shall be completed with17 in two years after the date of enactment of this subtitle 

18 and transmitted to the Committee on Commerce of the 

19 House of Representatives and the Committee on Energy 

20 and Natural Resources of the Senate. An individual study 

21 shall be prepared for each of the Nation’s principal river 

22 basins. Each such study shall identify and describe with 

23 specificity the following matters: 

24 (1) Opportunities to improve the efficiency of 

25 hydropower generation at such facilities through, but
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1 not limited to, mechanical, structural, or operational 

2 changes. 

3 (2) Opportunities to improve the efficiency of 

4 the use of water supplied or regulated by Federal 

5 projects where such improvement could, in the ab6 sence of legal or administrative constraints, make 

7 additional water supplies available for hydropower 

8 generation or reduce project energy use. 

9 (3) Opportunities to create additional hydro10 power generating capacity at existing facilities 

11 through, but not limited to, the construction of addi12 tional generating facilities, the uprating of genera13 tors and turbines, and the construction of pumped 

14 storage facilities. 

15 (4) Preliminary assessment of the costs and the 

16 economic and environmental consequences of such 

17 measures. 

18 (b) PREVIOUS STUDIES.—If studies of the type re19 quired by subsection (a) have been prepared by any agency 

20 of the United States and published within the five years 

21 prior to the date of enactment of this subtitle, the Sec22 retary of Energy may choose not to perform new studies 

23 and incorporate the information in such studies into the 

24 studies required by subsection (a). 
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1 (c) AUTHORIZATION.—There is authorized to be ap2 propriated such sums as may be necessary to carry out 

3 the purposes of this section.

4 TITLE IV—NUCLEAR MATTERS 

5 Subtitle A—Price-Anderson Act 

6 Amendments 

7 SEC. 4001. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Price-Anderson 

9 Amendments Act of 2003’’. 

10 SEC. 4002. EXTENSION OF INDEMNIFICATION AUTHORITY. 

11 (a) INDEMNIFICATION OF NUCLEAR REGULATORY

12 COMMISSION LICENSEES.—Section 170 c. of the Atomic 

13 Energy Act of 1954 (42 U.S.C. 2210(c)) is amended—

14 (1) in the subsection heading, by striking ‘‘LI15 CENSES’’ and inserting ‘‘LICENSEES’’; and 

16 (2) by striking ‘‘December 31, 2003’’ each 

17 place it appears and inserting ‘‘August 1, 2017’’. 

18 (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY

19 CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En20 ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended 

21 by striking ‘‘December 31, 2004’’ and inserting ‘‘August 

22 1, 2017’’. 

23 (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL

24 INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 

25 of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au-
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1 gust 1, 2002’’ each place it appears and inserting ‘‘August 

2 1, 2017’’. 

3 SEC. 4003. MAXIMUM ASSESSMENT. 

4 Section 170 of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2210) is amended—

6 (1) in subsection b.(1), in the second proviso of 

7 the third sentence—

8 (A) by striking ‘‘$63,000,000’’ and insert9 ing ‘‘$94,000,000’’; and 

10 (B) by striking ‘‘$10,000,000 in any 1 

11 year’’ and inserting ‘‘$15,000,000 in any 1 year 

12 (subject to adjustment for inflation under sub13 section t.)’’; and 

14 (2) in subsection t.—

15 (A) by inserting ‘‘total and annual’’ after 

16 ‘‘amount of the maximum’’; 

17 (B) by striking ‘‘the date of the enactment 

18 of the Price-Anderson Amendments Act of 

19 1988’’ and inserting ‘‘July 1, 2002’’; and 

20 (C) by striking ‘‘such date of enactment’’ 

21 and inserting ‘‘July 1, 2002’’. 

22 SEC. 4004. DEPARTMENT OF ENERGY LIABILITY LIMIT. 

23 (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY

24 CONTRACTORS.—Section 170 d. of the Atomic Energy Act 
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1 of 1954 (42 U.S.C. 2210(d)) is amended by striking para2 graph (2) and inserting the following: 

3 ‘‘(2) In an agreement of indemnification entered into 

4 under paragraph (1), the Secretary—

5 ‘‘(A) may require the contractor to provide and 

6 maintain the financial protection of such a type and 

7 in such amounts as the Secretary shall determine to 

8 be appropriate to cover public liability arising out of 

9 or in connection with the contractual activity; and 

10 ‘‘(B) shall indemnify the persons indemnified 

11 against such liability above the amount of the finan12 cial protection required, in the amount of 

13 $10,000,000,000 (subject to adjustment for inflation 

14 under subsection t.), in the aggregate, for all per15 sons indemnified in connection with the contract and 

16 for each nuclear incident, including such legal costs 

17 of the contractor as are approved by the Secretary.’’. 

18 (b) CONTRACT AMENDMENTS.—Section 170 d. of the 

19 Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is 

20 amended by striking paragraph (3) and inserting the fol21 lowing: 

22 ‘‘(3) All agreements of indemnification under which 

23 the Department of Energy (or its predecessor agencies) 

24 may be required to indemnify any person under this sec25 tion shall be deemed to be amended, on the date of enact-
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1 ment of the Price-Anderson Amendments Act of 2003, to 

2 reflect the amount of indemnity for public liability and any 

3 applicable financial protection required of the contractor 

4 under this subsection.’’. 

5 (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 

6 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 

7 amended—

8 (1) by striking ‘‘the maximum amount of finan9 cial protection required under subsection b. or’’; and 

10 (2) by striking ‘‘paragraph (3) of subsection d., 

11 whichever amount is more’’ and inserting ‘‘para12 graph (2) of subsection d.’’. 

13 SEC. 4005. INCIDENTS OUTSIDE THE UNITED STATES. 

14 (a) AMOUNT OF INDEMNIFICATION.—Section 170 

15 d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 

16 2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 

17 inserting ‘‘$500,000,000’’. 

18 (b) LIABILITY LIMIT.—Section 170 e.(4) of the 

19 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 

20 amended by striking ‘‘$100,000,000’’ and inserting 

21 ‘‘$500,000,000’’. 

22 SEC. 4006. REPORTS. 

23 Section 170 p. of the Atomic Energy Act of 1954 (42 

24 U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 

25 and inserting ‘‘August 1, 2013’’.
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1 SEC. 4007. INFLATION ADJUSTMENT. 

2 Section 170 t. of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2210(t)) is amended—

4 (1) by redesignating paragraph (2) as para5 graph (3); and 

6 (2) by adding after paragraph (1) the following:

7 ‘‘(2) The Secretary shall adjust the amount of indem8 nification provided under an agreement of indemnification 

9 under subsection d. not less than once during each 5-year 

10 period following July 1, 2002, in accordance with the ag11 gregate percentage change in the Consumer Price Index 

12 since—

13 ‘‘(A) that date, in the case of the first adjust14 ment under this paragraph; or 

15 ‘‘(B) the previous adjustment under this para16 graph.’’. 

17 SEC. 4008. PRICE-ANDERSON TREATMENT OF MODULAR RE18 ACTORS. 

19 Section 170 b. of the Atomic Energy Act of 1954 (42 

20 U.S.C. 2210(b)) is amended by adding at the end the fol21 lowing new paragraph: 

22 ‘‘(5)(A) For purposes of this section only, the Com23 mission shall consider a combination of facilities described 

24 in subparagraph (B) to be a single facility having a rated 

25 capacity of 100,000 electrical kilowatts or more. 
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1 ‘‘(B) A combination of facilities referred to in sub2 paragraph (A) is 2 or more facilities located at a single 

3 site, each of which has a rated capacity of 100,000 elec4 trical kilowatts or more but not more than 300,000 elec5 trical kilowatts, with a combined rated capacity of not 

6 more than 1,300,000 electrical kilowatts.’’. 

7 SEC. 4009. APPLICABILITY. 

8 The amendments made by sections 4003, 4004, and 

9 4005 do not apply to a nuclear incident that occurs before 

10 the date of enactment of this Act.

11 SEC. 4010. PROHIBITION ON ASSUMPTION BY UNITED 

12 STATES GOVERNMENT OF LIABILITY FOR 

13 CERTAIN FOREIGN ACCIDENTS. 

14 Section 170 of the Atomic Energy Act of 1954 (42 

15 U.S.C. 2210) is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR

18 CERTAIN FOREIGN ACCIDENTS.—Notwithstanding this 

19 section or any other provision of law, no officer of the 

20 United States or of any department, agency, or instrumen21 tality of the United States Government may enter into any 

22 contract or other arrangement, or into any amendment or 

23 modification of a contract or other arrangement, the pur24 pose or effect of which would be to directly or indirectly 

25 impose liability on the United States Government, or any 
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1 department, agency, or instrumentality of the United 

2 States Government, or to otherwise directly or indirectly 

3 require an indemnity by the United States Government, 

4 for nuclear accidents occurring in connection with the de5 sign, construction, or operation of a production facility or 

6 utilization facility in any country whose government has 

7 been identified by the Secretary of State as engaged in 

8 state sponsorship of terrorist activities (specifically includ9 ing any country the government of which, as of September 

10 11, 2001, had been determined by the Secretary of State 

11 under section 620A(a) of the Foreign Assistance Act of 

12 1961, section 6(j)(1) of the Export Administration Act of 

13 1979, or section 40(d) of the Arms Export Control Act 

14 to have repeatedly provided support for acts of inter15 national terrorism).’’.

16 SEC. 4011. SECURE TRANSFER OF NUCLEAR MATERIALS. 

17 (a) AMENDMENT.—Chapter 14 of the Atomic Energy 

18 Act of 1954 (42 U.S.C. 2201–2210b) is amended by add19 ing at the end the following new section: 

20 ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MA21 TERIALS.—

22 ‘‘a. The Nuclear Regulatory Commission shall estab23 lish a system to ensure that, with respect to activities by 

24 any party pursuant to a license issued under this Act—
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1 ‘‘(1) materials described in subsection b., when 

2 transferred or received in the United States—

3 ‘‘(A) from a facility licensed by the Nu4 clear Regulatory Commission; 

5 ‘‘(B) from a facility licensed by an agree6 ment State; or 

7 ‘‘(C) from a country with whom the United 

8 States has an agreement for cooperation under 

9 section 123, 

10 are accompanied by a manifest describing the type 

11 and amount of materials being transferred; 

12 ‘‘(2) each individual transferring or accom13 panying the transfer of such materials has been sub14 ject to a security background check by appropriate 

15 Federal entities; and 

16 ‘‘(3) such materials are not transferred to or 

17 received at a destination other than a facility li18 censed by the Nuclear Regulatory Commission or an 

19 agreement State under this Act or other appropriate 

20 Federal facility, or a destination outside the United 

21 States in a country with whom the United States 

22 has an agreement for cooperation under section 123. 

23 ‘‘b. Except as otherwise provided by the Commission 

24 by regulation, the materials referred to in subsection a. 

25 are byproduct materials, source materials, special nuclear 
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1 materials, high-level radioactive waste, spent nuclear fuel, 

2 transuranic waste, and low-level radioactive waste (as de3 fined in section 2(16) of the Nuclear Waste Policy Act 

4 of 1982 (42 U.S.C. 10101(16))).’’. 

5 (b) REGULATIONS.—Not later than 1 year after the 

6 date of the enactment of this Act, and from time to time 

7 thereafter as it considers necessary, the Nuclear Regu8 latory Commission shall issue regulations identifying ra9 dioactive materials that, consistent with the protection of 

10 public health and safety and the common defense and se11 curity, are appropriate exceptions to the requirements of 

12 section 170C of the Atomic Energy Act of 1954, as added 

13 by subsection (a) of this section. 

14 (c) EFFECTIVE DATE.—The amendment made by 

15 subsection (a) shall take effect upon the issuance of regu16 lations under subsection (b). 

17 (d) EFFECT ON OTHER LAW.—Nothing in this sec18 tion or the amendment made by this section shall waive, 

19 modify, or affect the application of chapter 51 of title 49, 

20 United States Code, part A of subtitle V of title 49, 

21 United States Code, part B of subtitle VI of title 49, 

22 United States Code, and title 23, United States Code. 

23 (e) TABLE OF SECTIONS AMENDMENT.—The table of 

24 sections for chapter 14 of the Atomic Energy Act of 1954 

25 is amended by adding at the end the following new item:

‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
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1 SEC. 4012. NUCLEAR FACILITY THREATS. 

2 (a) STUDY.—The President, in consultation with the 

3 Nuclear Regulatory Commission and other appropriate 

4 Federal, State, and local agencies and private entities, 

5 shall conduct a study to identify the types of threats that 

6 pose an appreciable risk to the security of the various 

7 classes of facilities licensed by the Nuclear Regulatory 

8 Commission under the Atomic Energy Act of 1954. Such 

9 study shall take into account, but not be limited to—

10 (1) the events of September 11, 2001; 

11 (2) an assessment of physical, cyber, bio12 chemical, and other terrorist threats; 

13 (3) the potential for attack on facilities by mul14 tiple coordinated teams of a large number of individ15 uals; 

16 (4) the potential for assistance in an attack 

17 from several persons employed at the facility; 

18 (5) the potential for suicide attacks; 

19 (6) the potential for water-based and air-based 

20 threats; 

21 (7) the potential use of explosive devices of con22 siderable size and other modern weaponry; 

23 (8) the potential for attacks by persons with a 

24 sophisticated knowledge of facility operations; 

25 (9) the potential for fires, especially fires of 

26 long duration; and 
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1 (10) the potential for attacks on spent fuel 

2 shipments by multiple coordinated teams of a large 

3 number of individuals. 

4 (b) SUMMARY AND CLASSIFICATION REPORT.—Not 

5 later than 180 days after the date of the enactment of 

6 this Act, the President shall transmit to the Congress and 

7 the Nuclear Regulatory Commission a report—

8 (1) summarizing the types of threats identified 

9 under subsection (a); and 

10 (2) classifying each type of threat identified 

11 under subsection (a), in accordance with existing 

12 laws and regulations, as either—

13 (A) involving attacks and destructive acts, 

14 including sabotage, directed against the facility 

15 by an enemy of the United States, whether a 

16 foreign government or other person, or other17 wise falling under the responsibilities of the 

18 Federal Government; or 

19 (B) involving the type of risks that Nu20 clear Regulatory Commission licensees should 

21 be responsible for guarding against. 

22 (c) FEDERAL ACTION REPORT.—Not later than 90 

23 days after the date on which a report is transmitted under 

24 subsection (b), the President shall transmit to the Con25 gress a report on actions taken, or to be taken, to address 
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1 the types of threats identified under subsection (b)(2)(A). 

2 Such report may include a classified annex as appropriate. 

3 (d) REGULATIONS.—Not later than 270 days after 

4 the date on which a report is transmitted under subsection 

5 (b), the Nuclear Regulatory Commission shall issue regu6 lations, including changes to the design basis threat, to 

7 ensure that licensees address the threats identified under 

8 subsection (b)(2)(B). 

9 (e) PHYSICAL SECURITY PROGRAM.—The Nuclear 

10 Regulatory Commission shall establish an operational 

11 safeguards response evaluation program that ensures that 

12 the physical protection capability and operational safe13 guards response for sensitive nuclear facilities, as deter14 mined by the Commission consistent with the protection 

15 of public health and the common defense and security, 

16 shall be tested periodically through Commission approved 

17 or designed, observed, and evaluated force-on-force exer18 cises to determine whether the ability to defeat the design 

19 basis threat is being maintained. For purposes of this sub20 section, the term ‘‘sensitive nuclear facilities’’ includes at 

21 a minimum commercial nuclear power plants, including 

22 associated spent fuel storage facilities, spent fuel storage 

23 pools and dry cask storage at closed reactors, independent 

24 spent fuel storage facilities and geologic repository oper-
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1 ations areas, category I fuel cycle facilities, and gaseous 

2 diffusion plants. 

3 (f) CONTROL OF INFORMATION.—In carrying out this 

4 section, the President and the Nuclear Regulatory Com5 mission shall control the dissemination of restricted data, 

6 safeguards information, and other classified national secu7 rity information in a manner so as to ensure the common 

8 defense and security, consistent with chapter 12 of the 

9 Atomic Energy Act of 1954. 

10 SEC. 4013. UNREASONABLE RISK CONSULTATION. 

11 Section 170 of the Atomic Energy Act of 1954 (42 

12 U.S.C. 2210) is amended by adding at the end the fol13 lowing new subsection:

14 ‘‘v. UNREASONABLE RISK CONSULTATION.—(1) Be15 fore entering into an agreement of indemnification under 

16 this section with respect to a utilization facility, the Nu17 clear Regulatory Commission shall consult with the Assist18 ant to the President for Homeland Security (or any suc19 cessor official) concerning whether the location of the pro20 posed facility and the design of that type of facility ensure 

21 that the facility provides for adequate protection of public 

22 health and safety if subject to a terrorist attack. 

23 ‘‘(2) Before issuing a license or a license renewal for 

24 a sensitive nuclear facility, the Nuclear Regulatory Com25 mission shall consult with the Secretary of Homeland Se-
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1 curity or his designee concerning the emergency evacu2 ation plan for the communities living near the sensitive 

3 nuclear facility. For purposes of this paragraph, the term 

4 ‘sensitive nuclear facility’ has the meaning given that term 

5 in section 4012 of the Energy Policy Act of 2003.’’.

6 SEC. 4014. FINANCIAL ACCOUNTABILITY. 

7 (a) AMENDMENT.—Section 170 of the Atomic En8 ergy Act of 1954 (42 U.S.C. 2210) is amended by adding 

9 at the end the following new subsection: 

10 ‘‘w. FINANCIAL ACCOUNTABILITY.—(1) Notwith11 standing subsection d., the Attorney General may bring 

12 an action in the appropriate United States district court 

13 to recover from a contractor of the Secretary (or subcon14 tractor or supplier of such contractor) amounts paid by 

15 the Federal Government under an agreement of indem16 nification under subsection d. for public liability resulting 

17 from conduct which constitutes intentional misconduct of 

18 any corporate officer, manager, or superintendent of such 

19 contractor (or subcontractor or supplier of such con20 tractor). 

21 ‘‘(2) The Attorney General may recover under para22 graph (1) an amount not to exceed the amount of the prof23 it derived by the defendant from the contract. 

24 ‘‘(3) No amount recovered from any contractor (or 

25 subcontractor or supplier of such contractor) under para-
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1 graph (1) may be reimbursed directly or indirectly by the 

2 Department of Energy. 

3 ‘‘(4) Paragraph (1) shall not apply to any nonprofit 

4 entity conducting activities under contract for the Sec5 retary. 

6 ‘‘(5) No waiver of a defense required under this sec7 tion shall prevent a defendant from asserting such defense 

8 in an action brought under this subsection. 

9 ‘‘(6) The Secretary shall, by rule, define the terms 

10 ‘profit’ and ‘nonprofit entity’ for purposes of this sub11 section. Such rulemaking shall be completed not later than 

12 180 days after the date of the enactment of this sub13 section.’’. 

14 (b) EFFECTIVE DATE.—The amendment made by 

15 this section shall not apply to any agreement of indem16 nification entered into under section 170 d. of the Atomic 

17 Energy Act of 1954 (42 U.S.C. 2210(d)) before the date 

18 of the enactment of this Act. 

19 SEC. 4015. CIVIL PENALTIES. 

20 (a) REPEAL OF AUTOMATIC REMISSION.—Section 

21 234A b. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 

22 2282a(b)(2)) is amended by striking the last sentence. 

23 (b) LIMITATION FOR NONPROFIT INSTITUTIONS.—

24 Subsection d. of section 234A of the Atomic Energy Act
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1 of 1954 (42 U.S.C. 2282a(d)) is amended to read as fol2 lows: 

3 ‘‘d. Notwithstanding subsection a., a civil penalty for 

4 a violation under subsection a. shall not exceed the amount 

5 of any discretionary fee paid under the contract under 

6 which such violation occurs for any nonprofit contractor, 

7 subcontractor, or supplier—

8 ‘‘(1) described in section 501(c)(3) of the Inter9 nal Revenue Code of 1986 and exempt from tax 

10 under section 501(a) of such Code; or 

11 ‘‘(2) identified by the Secretary by rule as ap12 propriate to be treated the same under this sub13 section as an entity described in paragraph (1), con14 sistent with the purposes of this section.’’. 

15 (c) EFFECTIVE DATE.—The amendments made by 

16 this section shall not apply to any violation of the Atomic 

17 Energy Act of 1954 occurring under a contract entered 

18 into before the date of the enactment of this Act. 

19 (d) RULEMAKING.—Not later than 6 months after 

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

21 Energy shall issue a rule for the implementation of the 

22 amendment made by subsection (b). 
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1 Subtitle B—Miscellaneous Matters 

2 SEC. 4021. LICENSES. 

3 Section 103 c. of the Atomic Energy Act of 1954 (42 

4 U.S.C. 2133(c)) is amended by inserting ‘‘from the au5 thorization to commence operations’’ after ‘‘forty years’’. 

6 SEC. 4022. NUCLEAR REGULATORY COMMISSION MEET7 INGS. 

8 If a quorum of the Nuclear Regulatory Commission 

9 gathers to discuss official Commission business the discus10 sions shall be recorded, and the Commission shall notify 

11 the public of such discussions within 15 days after they 

12 occur. The Commission shall promptly make a transcript 

13 of the recording available to the public on request, except 

14 to the extent that public disclosure is exempted or prohib15 ited by law. This section shall not apply to a meeting, 

16 within the meaning of that term under section 552b(a)(2) 

17 of title 5, United States Code.

18 SEC. 4023. NRC TRAINING PROGRAM. 

19 (a) IN GENERAL.—In order to maintain the human 

20 resource investment and infrastructure of the United 

21 States in the nuclear sciences, health physics, and engi22 neering fields, in accordance with the statutory authorities 

23 of the Commission relating to the civilian nuclear energy 

24 program, the Nuclear Regulatory Commission shall carry 

25 out a training and fellowship program to address short-
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1 ages of individuals with critical nuclear safety regulatory 

2 skills. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—

4 (1) IN GENERAL.—There are authorized to be 

5 appropriated to carry out this section $1,000,000 for 

6 each of fiscal years 2004 through 2007. 

7 (2) AVAILABILITY.—Funds made available 

8 under paragraph (1) shall remain available until ex9 pended.

10 SEC. 4024. COST RECOVERY FROM GOVERNMENT AGEN11 CIES. 

12 Section 161 w. of the Atomic Energy Act of 1954 

13 (42 U.S.C. 2201(w)) is amended—

14 (1) by striking ‘‘for or is issued’’ and all that 

15 follows through ‘‘1702’’ and inserting ‘‘to the Com16 mission for, or is issued by the Commission, a li17 cense or certificate’’; 

18 (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 

19 and 

20 (3) by striking ‘‘, of applicants for, or holders 

21 of, such licenses or certificates’’.

22 SEC. 4025. ELIMINATION OF PENSION OFFSET. 

23 Section 161 of the Atomic Energy Act of 1954 (42 

24 U.S.C. 2201) is amended by adding at the end the fol25 lowing: 
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1 ‘‘y. exempt from the application of sections 

2 8344 and 8468 of title 5, United States Code, an 

3 annuitant who was formerly an employee of the 

4 Commission who is hired by the Commission as a 

5 consultant, if the Commission finds that the annu6 itant has a skill that is critical to the performance 

7 of the duties of the Commission.’’.

8 SEC. 4026. CARRYING OF FIREARMS BY LICENSEE EMPLOY9 EES. 

10 Section 161k. of the Atomic Energy Act of 1954 (42 

11 U.S.C. 2201(k)) is amended to read as follows: 

12 ‘‘k. authorize such of its members, officers, and 

13 employees as it deems necessary in the interest of 

14 the common defense and security to carry firearms 

15 while in the discharge of their official duties. The 

16 Commission may also authorize—

17 ‘‘(1) such of those employees of its con18 tractors and subcontractors (at any tier) en19 gaged in the protection of property under the 

20 jurisdiction of the United States located at fa21 cilities owned by or contracted to the United 

22 States or being transported to or from such fa23 cilities as it deems necessary in the interests of 

24 the common defense and security; and 
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1 ‘‘(2) such of those employees of persons li2 censed or certified by the Commission (includ3 ing employees of contractors of licensees or cer4 tificate holders) engaged in the protection of 

5 property of (A) facilities owned or operated by 

6 a Commission licensee or certificate holder that 

7 are designated by the Commission, or (B) prop8 erty of significance to the common defense and 

9 security located at facilities owned or operated 

10 by a Commission licensee or certificate holder 

11 or being transported to or from such facilities; 

12 to carry firearms while in the discharge of their offi13 cial duties. A person authorized to carry firearms 

14 under this subsection may, while in the performance 

15 of, and in connection with, official duties, make ar16 rests without warrant for any offense against the 

17 United States committed in that person’s presence 

18 or for any felony cognizable under the laws of the 

19 United States if that person has reasonable grounds 

20 to believe that the individual to be arrested has com21 mitted or is committing such felony. An employee of 

22 a contractor or subcontractor or of a Commission li23 censee or certificate holder (or a contractor of a li24 censee or certificate holder) authorized to carry fire25 arms under this subsection may make such arrests
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1 only when the individual to be arrested is within, 

2 or in direct flight from, the area of such offense. 

3 A person granted authority to make arrests by this 

4 subsection may exercise that authority only in the 

5 enforcement of laws regarding the property of the 

6 United States in the custody of the Department of 

7 Energy, the Nuclear Regulatory Commission, or a 

8 contractor of the Department of Energy or Nuclear 

9 Regulatory Commission or of a licensee or certificate 

10 holder of the Commission, laws applicable to facili11 ties owned or operated by a Commission licensee or 

12 certificate holder that are designated by the Com13 mission pursuant to this subsection and property of 

14 significance to the common defense and security that 

15 is in the custody of a licensee or certificate holder 

16 or a contractor of a licensee or certificate holder of 

17 the Commission, or any provision of this Act that 

18 may subject an offender to a fine, imprisonment, or 

19 both. The arrest authority conferred by this sub20 section is in addition to any arrest authority under 

21 other laws. The Secretary and the Commission, with 

22 the approval of the Attorney General, shall issue 

23 guidelines to implement this subsection;’’. 
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1 SEC. 4027. UNAUTHORIZED INTRODUCTION OF DANGEROUS 

2 WEAPONS. 

3 Section 229a. of the Atomic Energy Act of 1954 (42 

4 U.S.C. 2278a(a)) is amended by adding after ‘‘custody of 

5 the Commission’’ the following: ‘‘or subject to its licensing 

6 authority or to certification by the Commission under this 

7 Act or any other Act’’. 

8 SEC. 4028. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 

9 Section 236a. of the Atomic Energy Act of 1954 (42 

10 U.S.C. 2284(a)) is amended to read as follows: 

11 ‘‘a. Any person who intentionally and willfully de12 stroys or causes physical damage to, or who intentionally 

13 and willfully attempts to destroy or cause physical damage 

14 to—

15 ‘‘(1) any production facility or utilization facil16 ity licensed under this Act; 

17 ‘‘(2) any nuclear waste storage, treatment, or 

18 disposal facility licensed under this Act; 

19 ‘‘(3) any nuclear fuel for a utilization facility li20 censed under this Act or any spent nuclear fuel from 

21 such a facility; 

22 ‘‘(4) any uranium enrichment or nuclear fuel 

23 fabrication facility licensed or certified by the Nu24 clear Regulatory Commission; or 

25 ‘‘(5) any production, utilization, waste storage, 

26 waste treatment, waste disposal, uranium enrich-
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1 ment, or nuclear fuel fabrication facility subject to 

2 licensing or certification under this Act during its 

3 construction where the destruction or damage 

4 caused or attempted to be caused could affect public 

5 health and safety during the operation of the facil6 ity, 

7 shall be fined not more than $1,000,000 or imprisoned 

8 for up to life in prison without parole, or both.’’. 

9 SEC. 4029. COOPERATIVE RESEARCH AND DEVELOPMENT 

10 AND SPECIAL DEMONSTRATION PROJECTS 

11 FOR THE URANIUM MINING INDUSTRY. 

12 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to the Secretary of En14 ergy $10,000,000 for each of fiscal years 2004, 2005, and 

15 2006 for—

16 (1) cooperative, cost-shared agreements between 

17 the Department of Energy and domestic uranium 

18 producers to identify, test, and develop improved in 

19 situ leaching mining technologies, including low-cost 

20 environmental restoration technologies that may be 

21 applied to sites after completion of in situ leaching 

22 operations; and 

23 (2) funding for competitively selected dem24 onstration projects with domestic uranium producers 

25 relating to—
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1 (A) enhanced production with minimal en2 vironmental impacts; 

3 (B) restoration of well fields; and 

4 (C) decommissioning and decontamination 

5 activities. 

6 (b) DOMESTIC URANIUM PRODUCER.—For purposes 

7 of this section, the term ‘‘domestic uranium producer’’ has 

8 the meaning given that term in section 1018(4) of the En9 ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except 

10 that the term shall not include any producer that has not 

11 produced uranium from domestic reserves on or after July 

12 30, 1998, in Colorado, Nebraska, Texas, Utah, or Wyo13 ming. 

14 SEC. 4030. URANIUM SALES. 

15 (a) RESTRICTIONS ON INVENTORY SALES.—Section 

16 3112(d) of the USEC Privatization Act (42 U.S.C. 

17 2297h–10(d)) is amended to read as follows: 

18 ‘‘(d) INVENTORY SALES.—(1) In addition to the 

19 transfers and sales authorized under subsections (b), (c), 

20 and (e), the Secretary of Energy or the Secretary of the 

21 Army may transfer or sell uranium subject to paragraph 

22 (2). 

23 ‘‘(2) Except as provided in subsections (b), (c), and 

24 (e), no sale or transfer of uranium shall be made under 
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1 this subsection by the Secretary of Energy or the Sec2 retary of the Army unless—

3 ‘‘(A) the President determines that the material 

4 is not necessary for national security needs; 

5 ‘‘(B) the price paid to the appropriate Sec6 retary, if the transaction is a sale, will not be less 

7 that the fair market value of the material; and 

8 ‘‘(C) the sale or transfer to end users is made 

9 pursuant to a contract of at least 3 years duration. 

10 ‘‘(3) The Secretary of Energy shall not make any 

11 transfer or sale of uranium under this subsection that 

12 would cause the total amount of uranium transferred or 

13 sold pursuant to this subsection that is delivered for con14 sumption by end users to exceed—

15 ‘‘(A) 3 million pounds of U3O8 equivalent in fis16 cal year 2004, 2005, 2006, 2007, 2008, or 2009; 

17 ‘‘(B) 5 million pounds of U3O8 equivalent in 

18 fiscal year 2010 or 2011; 

19 ‘‘(C) 7 million pounds of U3O8 equivalent in fis20 cal year 2012; and 

21 ‘‘(D) 10 million pounds of U3O8 equivalent in 

22 fiscal year 2013 or any fiscal year thereafter. 

23 ‘‘(4) For the purposes of this subsection, the recovery 

24 of uranium from uranium bearing materials transferred 

25 or sold by the Secretary of Energy or the Secretary of
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1 the Army to the domestic uranium industry shall be the 

2 preferred method of making uranium available. The recov3 ered uranium shall be counted against the annual max4 imum deliveries set for in this section, when such uranium 

5 is sold to end users.’’. 

6 (b) TRANSFERS TO CORPORATION.—Section 3112 of 

7 the USEC Privatization Act (42 U.S.C. 2297h–10) is fur8 ther amended by adding at the end the following new sub9 section: 

10 ‘‘(g) TRANSFERS TO CORPORATION.—Notwith11 standing subsection (b)(2) and subsection (d)(2), the Sec12 retary may transfer up to 9,550 metric tons of uranium 

13 to the Corporation to replace uranium that the Secretary 

14 transferred to the Corporation on or about June 30, 1993, 

15 April 20, 1998, and May 18, 1998, and that does not meet 

16 commercial specifications.’’.

17 (c) SERVICES.—Section 3112 of the USEC Privatiza18 tion Act (42 U.S.C. 2297h–10) is further amended by 

19 adding at the end the following new subsection: 

20 ‘‘(h) SERVICES.—(1) Notwithstanding any other pro21 vision of this section, if the Secretary determines that if 

22 the Corporation has failed, or may fail, to perform any 

23 obligation under the Agreement between the Department 

24 of Energy and the Corporation dated June 17, 2002, and 

25 as amended thereafter, which failure could result in termi-
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1 nation of the Agreement, the Secretary shall notify the 

2 Committee on Energy and Commerce of the House of 

3 Representatives and the Committee on Energy and Nat4 ural Resources of the Senate, in such a manner that af5 fords the Committees an opportunity to comment, prior 

6 to a determination by the Secretary whether termination, 

7 waiver, or modification of the Agreement is required. The 

8 Secretary is authorized to take such action as he deter9 mines necessary under the Agreement to terminate, waive, 

10 or modify provisions of the Agreement to achieve its pur11 poses. 

12 ‘‘(2) Notwithstanding any other provision of this sec13 tion, if the Secretary determines in accordance with Arti14 cle 2D of the Agreement between the Department of En15 ergy and the Corporation dated June 17, 2002, and as 

16 amended thereafter, to transition operation of the Padu17 cah gaseous diffusion plant, the Secretary may provide 

18 uranium enrichment services in a manner consistent with 

19 Article 2D of such Agreement.’’. 

20 (d) REPORT.—Within 3 years after the date of enact21 ment of this Act, the Secretary shall report to the Con22 gress on the implementation of this section. The report 

23 shall include a discussion of available excess uranium in24 ventories, all sales or transfers made by the Secretary of 

25 Energy or the Secretary of the Army, the impact of such 
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1 sales or transfers on the domestic uranium industry, the 

2 spot market uranium price, and the national security in3 terests of the United States, and any steps taken to reme4 diate any adverse impacts of such sales or transfers. 

5 SEC. 4031. MEDICAL ISOTOPE PRODUCTION. 

6 Section 134 of the Atomic Energy Act of 1954 (42 

7 U.S.C. 2160d) is amended—

8 (1) by redesignating subsection b. as subsection 

9 f.; 

10 (2) by inserting after subsection a. the fol11 lowing: 

12 ‘‘b. The Commission may issue a license authorizing 

13 the export (including shipment to and use at intermediate 

14 and ultimate consignees specified in the license) to a Re15 cipient Country of highly enriched uranium for medical 

16 isotope production if, in addition to any other require17 ments of this Act, the Commission determines that—

18 ‘‘(1) a Recipient Country that supplies an as19 surance letter to the United States Government in 

20 connection with the Commission’s consideration of 

21 the export license application has informed the 

22 United States Government that any intermediate 

23 consignees and the ultimate consignee specified in 

24 the application are required to use such highly en-
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1 riched uranium solely to produce medical isotopes; 

2 and 

3 ‘‘(2) the highly enriched uranium for medical 

4 isotope production will be irradiated only in a reac5 tor in a Recipient Country that—

6 ‘‘(A) uses an alternative nuclear reactor 

7 fuel; or 

8 ‘‘(B) is the subject of an agreement with 

9 the United States Government to convert to an 

10 alternative nuclear reactor fuel when such fuel 

11 can be used in that reactor. 

12 ‘‘c. Applications to the Commission for licenses au13 thorizing the export to a Recipient Country of highly en14 riched uranium for medical isotope production shall be 

15 subject to subsection b., and subsection a. shall not be ap16 plicable to such exports. 

17 ‘‘d. The Commission is authorized to specify, by rule18 making or decision in connection with an export license 

19 application, that a country other than a Recipient Country 

20 may receive exports of highly enriched uranium for med21 ical isotope production in accordance with the same cri22 teria established by subsection b. for exports to a Recipi23 ent Country, upon the Commission’s finding that such ad24 ditional country is a party to the Treaty on the Non25 proliferation of Nuclear Weapons and the Convention on 
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1 the Physical Protection of Nuclear Material and will re2 ceive such highly enriched uranium pursuant to an agree3 ment with the United States concerning peaceful uses of 

4 nuclear energy. 

5 ‘‘e. The Commission shall review the adequacy of 

6 physical protection requirements that are currently appli7 cable to the transportation of highly enriched uranium for 

8 medical isotope production. If it determines that addi9 tional physical protection measures are necessary, includ10 ing any limits that the Commission finds are necessary 

11 on the quantity of highly enriched uranium contained in 

12 a single shipment for medical isotope production, the Com13 mission shall impose such requirements, as license condi14 tions or through other appropriate means.’’; and 

15 (3) in subsection f., as so redesignated by para16 graph (1) of this section—

17 (A) by striking ‘‘and’’ at the end of para18 graph (2); 

19 (B) by striking the period at the end of 

20 paragraph (3)(B) and inserting a semicolon; 

21 and 

22 (C) by adding at the end the following: 

23 ‘‘(4) the term ‘medical isotopes’ means radio24 active isotopes, including Molybdenum 99, Iodine 

25 131, and Xenon 133, that are used to produce radio-
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1 pharmaceuticals for diagnostic or therapeutic proce2 dures on patients, or in connection with research 

3 and development of radiopharmaceuticals; 

4 ‘‘(5) the term ‘highly enriched uranium for 

5 medical isotope production’ means highly enriched 

6 uranium contained in, or for use in, targets to be ir7 radiated for the sole purpose of producing medical 

8 isotopes; 

9 ‘‘(6) the term ‘radiopharmaceuticals’ means ra10 dioactive isotopes containing byproduct material 

11 combined with chemical or biological material that 

12 are designed to accumulate temporarily in a part of 

13 the body, for therapeutic purposes or for enabling 

14 the production of a useful image of the appropriate 

15 body organ or function for use in diagnosis of med16 ical conditions; and 

17 ‘‘(7) the term ‘Recipient Country’ means Can18 ada, Belgium, France, Germany, and the Nether19 lands.’’.

20 SEC. 4032. HIGHLY ENRICHED URANIUM DIVERSION 

21 THREAT REPORT. 

22 Section 307 of the Energy Reorganization Act of 

23 1974 (42 U.S.C. 5877) is amended by adding at the end 

24 the following new subsection:
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1 ‘‘(d) Not later than 6 months after the date of the 

2 enactment of this Act, the Secretary of Energy shall trans3 mit to the Congress a report with recommendations on re4 ducing the threat resulting from the theft or diversion of 

5 highly enriched uranium. Such report shall address—

6 ‘‘(1) monitoring of highly enriched uranium 

7 supplies at any commercial companies who have ac8 cess to substantial amounts of highly enriched ura9 nium; 

10 ‘‘(2) assistance to companies described in para11 graph (1) with security and personnel checks; 

12 ‘‘(3) acceleration of the process of blending 

13 down excess highly enriched uranium into low-en14 riched uranium; 

15 ‘‘(4) purchasing highly enriched uranium (ex16 cept for production of medical isotopes); 

17 ‘‘(5) paying the cost of shipping highly enriched 

18 uranium; 

19 ‘‘(6) accelerating the conversion of commercial 

20 research reactors and energy reactors to the use of 

21 low-enriched uranium fuel where they now use high22 ly enriched uranium fuel; and 

23 ‘‘(7) minimizing, and encouraging transparency 

24 in, the further enrichment of low-enriched uranium 

25 to highly enriched uranium.’’. 
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1 SEC. 4033. WHISTLEBLOWER PROTECTION. 

2 (a) DEFINITION OF EMPLOYER.—Section 211(a)(2) 

3 of the Energy Reorganization Act of 1974 (42 U.S.C. 

4 5851(a)(2)) is amended—

5 (1) by striking ‘‘and’’ at the end of subpara6 graph (C); 

7 (2) in subparagraph (D), by striking ‘‘that is 

8 indemnified’’ and all that follows through ‘‘12344.’’ 

9 and inserting ‘‘or the Commission; and’’; and 

10 (3) by adding at the end the following new sub11 paragraph: 

12 ‘‘(E) the Department of Energy and the Com13 mission.’’. 

14 (b) DE NOVO REVIEW.—Subsection (b) of such sec15 tion 211 is amended by adding at the end the following 

16 new paragraph: 

17 ‘‘(4) If the Secretary has not issued a final decision 

18 within 180 days after the filing of a complaint under para19 graph (1), and there is no showing that such delay is due 

20 to the bad faith of the claimant, the claimant may bring 

21 an action at law or equity for de novo review in the appro22 priate district court of the United States, which shall have 

23 jurisdiction over such an action without regard to the 

24 amount in controversy.’’.
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1 TITLE V—VEHICLES AND FUELS 

2 Subtitle A—Energy Policy Act 

3 Amendments 

4 SEC. 5011. CREDIT FOR SUBSTANTIAL CONTRIBUTION TO5 WARD NONCOVERED FLEETS. 

6 Section 508 of the Energy Policy Act of 1992 (42 

7 U.S.C. 13258) is amended by adding at the end the fol8 lowing new subsection: 

9 ‘‘(e) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO10 WARD USE OF DEDICATED VEHICLES IN NONCOVERED

11 FLEETS.—

12 ‘‘(1) DEFINITIONS.—In this subsection: 

13 ‘‘(A) MEDIUM OR HEAVY DUTY VEHI14 CLE.—The term ‘medium or heavy duty vehicle’ 

15 means a dedicated vehicle that—

16 ‘‘(i) in the case of a medium duty ve17 hicle, has a gross vehicle weight rating of 

18 more than 8,500 pounds but not more 

19 than 14,000 pounds; or 

20 ‘‘(ii) in the case of a heavy duty vehi21 cle, has a gross vehicle weight rating of 

22 more than 14,000 pounds. 

23 ‘‘(B) SUBSTANTIAL CONTRIBUTION.—The 

24 term ‘substantial contribution’ means not less 
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1 than $15,000 in cash or in kind services, as de2 termined by the Secretary. 

3 ‘‘(2) ALLOCATION OF CREDITS.—The Secretary 

4 shall allocate a credit to a fleet or covered person 

5 under this section if the fleet or person makes a sub6 stantial contribution toward the acquisition and use 

7 of dedicated vehicles or neighborhood electric vehi8 cles by a person that owns, operates, leases, or oth9 erwise controls a fleet that is not covered by this 

10 title. 

11 ‘‘(3) MULTIPLE CREDITS FOR MEDIUM AND

12 HEAVY DUTY VEHICLES.—The Secretary shall issue 

13 2 full credits to a fleet or covered person under this 

14 section if the fleet or person makes a substantial 

15 contribution toward the acquisition and use of a me16 dium or heavy duty vehicle. 

17 ‘‘(4) USE OF CREDITS.—At the request of a 

18 fleet or covered person allocated a credit under this 

19 subsection, the Secretary shall, for the year in which 

20 the acquisition of the dedicated vehicle or neighbor21 hood electric vehicle is made, treat that credit as the 

22 acquisition of 1 alternative fueled vehicle that the 

23 fleet or covered person is required to acquire under 

24 this title. 
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1 ‘‘(5) LIMITATION.—Except as provided in para2 graph (3), no more than 1 credit shall be allocated 

3 under this subsection for each vehicle.’’. 

4 SEC. 5012. CREDIT FOR ALTERNATIVE FUEL INFRASTRUC5 TURE. 

6 Section 508 of the Energy Policy Act of 1992 (42 

7 U.S.C. 13258), as amended by this Act, is further amend8 ed by adding at the end the following new subsection: 

9 ‘‘(f) CREDIT FOR INVESTMENT IN ALTERNATIVE

10 FUEL INFRASTRUCTURE.—

11 ‘‘(1) DEFINITION.—In this subsection, the term 

12 ‘qualifying infrastructure’ means—

13 ‘‘(A) equipment required to refuel or re14 charge alternative fueled vehicles; 

15 ‘‘(B) facilities or equipment required to 

16 maintain, repair, or operate alternative fueled 

17 vehicles; 

18 ‘‘(C) training programs, educational mate19 rials, or other activities necessary to provide in20 formation regarding the operation, mainte21 nance, or benefits associated with alternative 

22 fueled vehicles; and 

23 ‘‘(D) such other activities the Secretary 

24 considers to constitute an appropriate expendi25 ture in support of the operation, maintenance, 
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1 or further widespread adoption of or utilization 

2 of alternative fueled vehicles. 

3 ‘‘(2) ALLOCATION OF CREDITS.—The Secretary 

4 shall allocate a credit to a fleet or covered person 

5 under this section for investment in qualifying infra6 structure if the qualifying infrastructure is open to 

7 the general public during regular business hours. 

8 ‘‘(3) AMOUNT.—For the purposes of credits 

9 under this subsection—

10 ‘‘(A) 1 credit shall be equal to a minimum 

11 investment of $25,000 in cash or in kind serv12 ices, as determined by the Secretary; and 

13 ‘‘(B) except in the case of a Federal or 

14 State fleet, no part of the investment may be 

15 provided by Federal or State funds. 

16 ‘‘(4) USE OF CREDITS.—At the request of a 

17 fleet or covered person allocated a credit under this 

18 subsection, the Secretary shall, for the year in which 

19 the investment is made, treat that credit as the ac20 quisition of 1 alternative fueled vehicle that the fleet 

21 or covered person is required to acquire under this 

22 title.’’. 

23 SEC. 5013. ALTERNATIVE FUELED VEHICLE REPORT.

24 (a) DEFINITIONS.—In this section: 
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1 (1) ALTERNATIVE FUEL.—The term ‘‘alter2 native fuel’’ has the meaning given the term in sec3 tion 301 of the Energy Policy Act of 1992 (42 

4 U.S.C. 13211). 

5 (2) ALTERNATIVE FUELED VEHICLE.—The 

6 term ‘‘alternative fueled vehicle’’ has the meaning 

7 given the term in section 301 of the Energy Policy 

8 Act of 1992 (42 U.S.C. 13211). 

9 (3) LIGHT DUTY MOTOR VEHICLE.—The term 

10 ‘‘light duty motor vehicle’’ has the meaning given 

11 the term in section 301 of the Energy Policy Act of 

12 1992 (42 U.S.C. 13211). 

13 (4) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Energy. 

15 (b) REPORT.—Not later than 1 year after the date 

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

17 Congress a report on the effect that titles III, IV, and 

18 V of the Energy Policy Act of 1992 have had on the devel19 opment of alternative fueled vehicle technology, the avail20 ability of alternative fueled vehicles in the market, the cost 

21 of light duty motor vehicles that are alternative fueled ve22 hicles, and the availability, cost, and use of alternative 

23 fuels and biodiesel. Such report shall include any rec24 ommendations of the Secretary for legislation concerning 

25 the alternative fueled vehicle requirements under the En-
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1 ergy Policy Act of 1992, and shall examine, discuss, and 

2 determine the following: 

3 (1) The number of alternative fueled vehicles 

4 acquired by fleets or covered persons required to ac5 quire alternative fueled vehicles. 

6 (2) The extent to which fleets subject to alter7 native fueled vehicle acquisition requirements have 

8 met those requirements through the use of fuel mix9 tures that contain at least 20 percent biodiesel pur10 suant to section 312 of the Energy Policy Act of 

11 1992 (42 U.S.C. 13220). 

12 (3) The amount of alternative fuel used in al13 ternative fueled vehicles acquired by fleets required 

14 to acquire alternative fueled vehicles under the En15 ergy Policy Act of 1992. 

16 (4) The amount of petroleum displaced by the 

17 use of alternative fueled vehicles acquired by fleets 

18 or covered persons. 

19 (5) The cost of compliance with vehicle acquisi20 tion requirements under the Energy Policy Act of 

21 1992, and the benefits of using such fuel and vehi22 cles. 

23 (6) Projections of the amount of biodiesel, the 

24 number of alternative fueled vehicles, and the 

25 amount of alternative fuel that will be used over the 
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1 next decade by fleets required to acquire alternative 

2 fueled vehicles under the Energy Policy Act of 1992. 

3 (7) The existence of any obstacles to increased 

4 use of alternative fuel and biodiesel in vehicles ac5 quired or maintained by fleets required to acquire al6 ternative fueled vehicles under the Energy Policy 

7 Act of 1992, and the benefits of using such fuel and 

8 vehicles. 

9 SEC. 5014. ALLOCATION OF INCREMENTAL COSTS. 

10 Section 303(c) of the Energy Policy Act of 1992 (42 

11 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in12 serting ‘‘shall’’.

13 Subtitle B—FreedomCAR and 

14 Hydrogen Fuel Program 

15 SEC. 5021. SHORT TITLE. 

16 This subtitle may be cited as the ‘‘FreedomCAR and 

17 Hydrogen Fuel Act of 2003’’ or ‘‘Freedom Act’’. 

18 SEC. 5022. FINDINGS, PURPOSE, AND DEFINITIONS. 

19 (a) FINDINGS.—Congress finds that—

20 (1) the United States is currently dependent on 

21 foreign sources for a majority of its petroleum sup22 ply; 

23 (2) the Nation’s dependence on foreign petro24 leum is expected to increase in the decades ahead; 
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1 (3) it is in the national interest to reduce de2 pendence on imported petroleum by accelerating 

3 Federal efforts to partner with the private sector by 

4 deploying hydrogen fuel cell vehicles and the refuel5 ing infrastructure to support those vehicles; 

6 (4) it is in the national interest to develop a 

7 light duty vehicle fleet that substantially reduces de8 pendence on foreign petroleum, assists the Nation in 

9 meeting its requirements under the Clean Air Act 

10 and reduces greenhouse gas emissions in a manner 

11 that maintains the freedom of consumers to pur12 chase the kinds of vehicles they wish to drive and 

13 the freedom to refuel those vehicles safely, 

14 affordably, and conveniently; 

15 (5) hydrogen fuel cell vehicles and supporting 

16 infrastructure have the potential to accelerate the 

17 parallel advancement of fuel cells for stationary 

18 power that will enhance the resiliency, reliability, 

19 and environmental performance of the Nation’s elec20 tricity infrastructure; 

21 (6) ancillary benefits for the Nation, including 

22 the acceleration of fuel cell technology for consumer 

23 electronics and portable power, are likely to result 

24 from the advancement of hydrogen fuel cell vehicles 

25 and supporting infrastructure; 
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1 (7) there is a need for deployment of bridging 

2 technologies including gasoline electric and diesel 

3 electric hybrid drive systems, advanced combustion 

4 engines including clean diesel, electric battery, and 

5 power electronics, and alternative fuels and other 

6 technology that can contribute to reducing petroleum 

7 demand and decreasing air emissions; 

8 (8) low-cost hydrogen production, storage, and 

9 delivery facilities are essential to the success of the 

10 FreedomCAR Vehicle Programs; and 

11 (9) work should be performed in a manner that 

12 is cognizant of consumer acceptance, passenger safe13 ty, and marketplace success. 

14 (b) PURPOSE.—The purpose of this subtitle is to re15 duce significantly the Nation’s dependence on imported 

16 petroleum, enhance the production and conservation of en17 ergy, and reduce air emissions through support of the fol18 lowing Department of Energy actions: 

19 (1) Programs and activities leading to—

20 (A) a commitment by automakers and hy21 drogen energy and energy infrastructure pro22 viders no later than year 2015 to offer safe, af23 fordable, and technically viable hydrogen fuel 

24 cell vehicles and refueling infrastructure in the 

25 mass consumer market; and
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1 (B) a commitment by the automakers and 

2 hydrogen energy and energy infrastructure pro3 viders to the deployment of hydrogen fuel cell 

4 vehicles and affordable and convenient refueling 

5 infrastructure no later than year 2020. 

6 (2) A program to establish international codes, 

7 standards, and safety protocols for the use and man8 ufacture of domestic and foreign products. 

9 (3) Interagency, intergovernmental, and inter10 national programs and activities for education, infor11 mation exchange, and cooperation. 

12 (c) DEFINITIONS.—In this subtitle: 

13 (1) The term ‘‘Advisory Committee’’ means the 

14 Hydrogen Technical and Fuel Cell Advisory Com15 mittee established under section 5028 of this Act. 

16 (2) The term ‘‘Department’’ means the Depart17 ment of Energy. 

18 (3) The term ‘‘FreedomCAR’’ is the acronym 

19 for a Department initiative in automotive research 

20 and development entitled ‘‘Freedom Cooperative 

21 Automotive Research’’. 

22 (4) The term ‘‘fuel cell’’ means a device that di23 rectly converts the chemical energy of a fuel and an 

24 oxidant into electricity by an electrochemical process 

25 taking place at separate electrodes in the device. 
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1 (5) The term ‘‘infrastructure’’ means the equip2 ment, systems, or facilities used to produce, dis3 tribute, deliver, or store hydrogen and other ad4 vanced clean 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 

9 of Energy. 

10 SEC. 5023. PLAN; REPORT. 

11 (a) PLAN.—The Secretary, in consultation with other 

12 appropriate Federal agencies, shall prepare a comprehen13 sive interagency coordination plan for activities under this 

14 subtitle. This plan may be provided as part of the Presi15 dent’s annual budget submission to Congress. 

16 (b) REPORT.—Not later than one year after the date 

17 of enactment of this subtitle, and biennially thereafter, the 

18 Secretary shall transmit to the Congress a report on the 

19 status of programs and activities under this subtitle. This 

20 report may be provided as part of the President’s annual 

21 budget submission to Congress. This report may include, 

22 in addition to any views and recommendations of the Sec23 retary— 

24 (1) an assessment of the effectiveness of the 

25 programs and activities under this subtitle and the 
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1 extent to which the purposes in section 5022(b) have 

2 been met; and 

3 (2) the potential for interagency, intergovern4 mental, international, or private sector collaboration 

5 opportunities and activities under this subtitle. 

6 SEC. 5024. PUBLIC-PRIVATE PARTNERSHIP. 

7 (a) PROGRAM.—In partnership with the private sec8 tor, the Secretary shall conduct a program designed to fa9 cilitate the production and conservation of energy and the 

10 deployment of energy infrastructure, including all of the 

11 following: 

12 (1) Hydrogen energy. 

13 (2) Fuel cells. 

14 (3) Advanced vehicle technologies. 

15 (4) Clean fuels in addition to hydrogen. 

16 (5) Codes, standards, and safety protocols. 

17 (b) PROGRAM GOALS.—

18 (1) AUTOMAKERS.—For automakers the goals 

19 of the program are—

20 (A) to enable a commitment by auto21 makers no later than year 2015 to offer safe, 

22 affordable, and technically viable hydrogen fuel 

23 cell vehicles into commerce; and 

24 (B) to enable production, delivery, and ac25 ceptance by consumers of model year 2020 hy-
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1 drogen fuel cell and other vehicles that will 

2 have— 

3 (i) a range of at least three hundred 

4 miles; 

5 (ii) improved performance and ease of 

6 driving; 

7 (iii) met all light duty safety regula8 tions created under section 30111 of title 

9 49, United States Code; and 

10 (iv) when compared to light duty vehi11 cles in model year 2003—

12 (I) a fuel economy that is two 

13 and one half times the equivalent fuel 

14 economy of these vehicles as regulated 

15 under the Motor Vehicle Information 

16 and Cost Savings Act, or about 70 

17 miles per gallon, and 

18 (II) near zero emissions of air 

19 pollutants regulated under the Clean 

20 Air Act. 

21 (2) HYDROGEN ENERGY AND ENERGY INFRA22 STRUCTURE.—For hydrogen energy and energy in23 frastructure the goals of the program include, but 

24 are not limited to, a commitment not later than 
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1 2015 that will enable the deployment by 2020 of in2 frastructure to provide—

3 (A) safe and convenient refueling; 

4 (B) activities leading to widespread avail5 ability of hydrogen from domestic energy 

6 sources through—

7 (i) production, including consideration 

8 of cost-effective production from domestic 

9 energy sources; 

10 (ii) delivery, including transmission by 

11 pipeline and other distribution methods for 

12 hydrogen; and 

13 (iii) storage, including storage in sur14 face transportation vehicles; 

15 (C) hydrogen for fuel cells, internal com16 bustion engines, and other energy conversion 

17 devices for portable, stationary, and transpor18 tation applications; and 

19 (D) other technologies consistent with the 

20 Department’s plan. 

21 (3) FUEL CELLS.—The program for fuel cells 

22 and their portable, stationary, and transportation 

23 applications may include, but is not limited to—

24 (A) a safe, economical, and environ25 mentally sound hydrogen fuel cell;
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1 (B) a fuel cell for light duty and other ve2 hicles; and 

3 (C) other technologies consistent with the 

4 Department’s plan. 

5 (4) ADVANCED VEHICLE TECHNOLOGIES.—The 

6 program for advanced vehicle technologies may in7 clude, but is not limited to—

8 (A) advanced combustion; 

9 (B) materials; 

10 (C) energy storage; 

11 (D) control systems; and 

12 (E) other technologies consistent with the 

13 Department’s plan. 

14 (5) CODES, STANDARDS, AND SAFETY PROTO15 COLS.—(A) The Department’s program for codes, 

16 standards, and safety protocols shall strive towards 

17 establishment of international codes, standards, and 

18 safety protocols for the use and manufacture of do19 mestic and foreign products. 

20 (B) The Secretary may represent the United 

21 States interests with respect to activities and pro22 grams under this subsection, collaborating with the 

23 Secretary of Transportation, and in consultation 

24 with other appropriate governments and nongovern25 mental organizations including the following: 
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1 (i) Other Federal, State, regional, and 

2 local governments and their representatives. 

3 (ii) Industry and its representatives, in4 cluding members of the energy and transpor5 tation industries. 

6 (iii) Foreign governments and their rep7 resentatives including international organiza8 tions. 

9 (c) FEDERAL FUNDING.—(1) The Secretary shall 

10 carry out the programs and activities under this section 

11 consistent with the generally applicable Federal laws and 

12 regulations governing awards of financial assistance, con13 tracts, or other agreements, and may include funding to 

14 nationally recognized university-based research centers. 

15 (2) The Secretary shall endeavor to avoid duplication 

16 or displacement of other research and development pro17 grams and activities. 

18 (d) COST SHARING.—(1) The Secretary shall require 

19 a commitment from non-Federal sources of at least 20 

20 percent of the cost of proposed programs under this sec21 tion. 

22 (2) The Secretary may reduce or eliminate the cost 

23 sharing requirement under paragraph (1)—

24 (A) if the Secretary determines that the activity 

25 is of a basic or fundamental nature which is vital to 
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1 the success of the program and unlikely to occur in 

2 a timely manner without reduction or elimination of 

3 the cost-sharing requirement; or 

4 (B) for technical analyses, outreach programs, 

5 and other activities including educational programs 

6 under section 5027 of this subtitle that the Sec7 retary does not expect to result in a marketable 

8 product. 

9 SEC. 5025. DEPLOYMENT. 

10 (a) DEPLOYMENT PROGRAM.—In partnership with 

11 the private sector, the Secretary shall conduct a program 

12 to facilitate the deployment of—

13 (1) hydrogen energy and energy infrastructure; 

14 (2) fuel cells; 

15 (3) advanced vehicle technologies; 

16 (4) clean fuels in addition to hydrogen; and 

17 (5) codes, standards, and safety protocols. 

18 (b) PROGRAM GOALS.—(1) For automakers, the 

19 goals of the program are— 

20 (A) to enable a decision by automakers no later 

21 than year 2015 to offer safe, affordable, and tech22 nically viable hydrogen fuel cell vehicles into com23 merce; and 
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1 (B) to enable production and delivery to, and 

2 acceptance by, consumers of model year 2020 hydro3 gen fuel cell and other vehicles that will have—

4 (i) a range of at least 300 miles; 

5 (ii) improved performance and ease of driv6 ing; 

7 (iii) met all light duty safety regulations 

8 created under section 30111 of title 49, United 

9 States Code; and 

10 (iv) when compared to light duty vehicles 

11 in model year 2003—

12 (I) a fuel economy that is two and one 

13 half times the equivalent fuel economy of 

14 these vehicles under the Motor Vehicle In15 formation and Cost Savings Act, or about 

16 70 miles per gallon; and 

17 (II) near zero emissions of air pollut18 ants regulated under the Clean Air Act. 

19 (2) For hydrogen energy and energy infrastructure 

20 the goals of the program include, but are not limited to, 

21 a commitment not later than 2015 that will enable the 

22 deployment by 2020 of infrastructure to provide—

23 (A) safe, convenient, and affordable refueling; 

24 (B) widespread availability of hydrogen from 

25 domestic energy sources through—
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1 (i) production, including consideration of 

2 cost-effective production from domestic energy 

3 sources; 

4 (ii) delivery, including transmission by 

5 pipeline and other distribution methods, for hy6 drogen in its gaseous, liquid, and solid states; 

7 and 

8 (iii) storage, including storage in surface 

9 transportation vehicles; 

10 (C) hydrogen for fuel cells, internal combustion 

11 engines, and other energy conversion devices for 

12 portable, stationary, and transportation applications; 

13 and 

14 (D) other technologies consistent with the De15 partment’s plan. 

16 (c) FUEL CELLS.—The program for fuel cells and 

17 their portable, stationary, and transportation applications 

18 may include but is not limited to—

19 (1) a safe, economical, and environmentally 

20 sound hydrogen fuel cell; 

21 (2) a fuel cell for light duty and other vehicles; 

22 and 

23 (3) other technologies consistent with the De24 partment’s plan. 
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1 (d) ADVANCED VEHICLE TECHNOLOGIES.—The pro2 gram for advanced vehicle technologies may include, but 

3 is not limited to—

4 (1) advanced combustion; 

5 (2) materials; 

6 (3) energy storage; 

7 (4) control systems; and 

8 (5) other technologies consistent with the De9 partment’s plan. 

10 (e) FEDERAL FUNDING.—The Secretary shall carry 

11 out the program and activities under this section con12 sistent with laws and regulations governing awards of fi13 nancial assistance, contracts or other agreements, and 

14 may include funding to nationally recognized university15 based research centers. The Secretary shall endeavor to 

16 avoid duplication or displacement of other programs. 

17 (f) COST SHARING.—

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

19 a commitment from non-Federal sources of at least 

20 50 percent of the costs directly relating to a dem21 onstration under this section. 

22 (2) REDUCTION.—The Secretary may reduce 

23 the non-Federal requirement under paragraph (1) if 

24 the Secretary determines that—
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1 (A) the reduction is appropriate consid2 ering the technological risks involved; and 

3 (B) the terms and conditions are con4 sistent with the Agreement on Subsidies and 

5 Countervailing Measures. 

6 (3) COOPERATIVE AGREEMENTS WITH GOV7 ERNMENTS.—The Secretary may enter into coopera8 tive and cost sharing agreements with Federal, 

9 State, or local governments to deploy vehicles, vehi10 cle systems, and refueling infrastructure using hy11 drogen, fuel cells, or other advanced technologies in 

12 government facilities or fleet transportation systems. 

13 SEC. 5026. ASSESSMENT AND TRANSFER. 

14 (a) PROGRAM.—The Secretary may conduct a pro15 gram to transfer technology to the private sector under 

16 this subtitle. 

17 (b) DISCLOSURE.—The Secretary may protect from 

18 disclosure, for up to 5 years after the information was de19 veloped, any information developed pursuant to a cost 

20 shared transaction, or subagreement thereunder, entered 

21 into under this subtitle to advance the goals of the pro22 grams, which developed information is of a character that 

23 it would be protected from disclosure under section 

24 552(b)(4) of title 5, United States Code, if this developed 
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1 information had been obtained from a person other than 

2 a Federal agency. 

3 SEC. 5027. INTERAGENCY TASK FORCE. 

4 (a) ESTABLISHMENT.—Not later than 120 days after 

5 the date of enactment of this Act, the President shall es6 tablish an interagency task force chaired by the Secretary 

7 or his designee with representatives from each of the fol8 lowing: 

9 (1) The Office of Science and Technology Pol10 icy within the Executive Office of the President. 

11 (2) The Department of Transportation. 

12 (3) The Department of Defense. 

13 (4) The Department of Commerce (including 

14 the National Institute of Standards and Tech15 nology). 

16 (5) The Environmental Protection Agency. 

17 (6) The National Aeronautics and Space Ad18 ministration. 

19 (7) Other Federal agencies as the Secretary de20 termines appropriate. 

21 (b) DUTIES OF THE INTERAGENCY TASK FORCE.—

22 (1) PLANNING.—The task force shall coordinate 

23 the implementation of the interagency plan in sec24 tion 5023(a), and work towards deployment of—
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1 (A) a safe, economical, and environ2 mentally sound fuel infrastructure, including an 

3 infrastructure that supports buses and other 

4 fleet transportation; 

5 (B) fuel cells in government and other ap6 plications, including portable, stationary, and 

7 transportation applications; and 

8 (C) distributed power generation, including 

9 the generation of combined heat, power, and 

10 clean fuels including hydrogen. 

11 (2) INFORMATION EXCHANGE.—(A) The inter12 agency task force shall coordinate interagency pro13 grams and activities including the exchange of infor14 mation. 

15 (B) The heads of all agencies, including those 

16 whose agencies are not represented on the inter17 agency task force, shall cooperate with and furnish 

18 information to the interagency task force, the Advi19 sory Committee, and the Department. 

20 (C) The information exchange may consist of 

21 workshops, publications, conferences, and a database 

22 for use by the public and private sectors. The inter23 agency task force is expected to—
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1 (i) foster the exchange of generic, non2 proprietary information and technology among 

3 industry, academia, and government; 

4 (ii) update the inventory and assessment of 

5 hydrogen, fuel cells, and other advanced tech6 nologies, including their commercial capability 

7 for the economic and environmentally safe pro8 duction, distribution, delivery, storage, and use 

9 of clean fuels including hydrogen; 

10 (iii) integrate technical and other informa11 tion made available as a result of the programs 

12 and activities under this subtitle; 

13 (iv) promote the marketplace introduction 

14 of infrastructure for hydrogen and other clean 

15 fuel vehicles; and 

16 (v) conduct an education program to pro17 vide FreedomCAR and hydrogen fuel informa18 tion to potential end-users. 

19 SEC. 5028. ADVISORY COMMITTEE. 

20 (a) ESTABLISHMENT.—The Hydrogen Technical and 

21 Fuel Cell Advisory Committee is established to advise the 

22 Secretary on the programs and activities under this sub23 title. 

24 (b) MEMBERSHIP.—
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1 (1) MEMBERS.—The Advisory Committee is 

2 comprised of not fewer than 12 nor more than 25 

3 members. These members shall be appointed by the 

4 Secretary to represent domestic industry, academia, 

5 professional societies, government agencies, and fi6 nancial, environmental, and other appropriate orga7 nizations based on the Department’s assessment of 

8 the technical and other qualifications of committee 

9 members and the needs of the Advisory Committee. 

10 (2) TERMS.—The term of a member of the Ad11 visory Committee shall not be more than 3 years. 

12 The Secretary may appoint members of the Advisory 

13 Committee in a manner that allows the terms of the 

14 members serving at any time to expire at spaced in15 tervals so as to ensure continuity in the functioning 

16 of the Advisory Committee. A member of the Advi17 sory Committee whose term is expiring may be re18 appointed. 

19 (3) CHAIRPERSON.—The Advisory Committee 

20 shall have a chairperson, who is elected by the mem21 bers from among their number. 

22 (c) REVIEW.—The Advisory Committee shall review 

23 and make recommendations to the Secretary on—

24 (1) the implementation of programs and activi25 ties under this subtitle;
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1 (2) the safety, economical, and environmental 

2 consequences of technologies for the production, dis3 tribution, delivery, storage, or use of hydrogen en4 ergy and fuel cells; and 

5 (3) the interagency coordination plan under sec6 tion 5023(a) of this Act. 

7 (d) RESPONSE TO RECOMMENDATIONS.—The Sec8 retary shall consider, but need not adopt, any rec9 ommendations of the Advisory Committee under sub10 section (c). 

11 (e) ADVISORY COMMITTEE SUPPORT.—The Sec12 retary shall provide resources necessary in the judgment 

13 of the Secretary for the Advisory Committee to carry out 

14 its responsibilities under this subtitle. 

15 SEC. 5029. AUTHORIZATION OF APPROPRIATIONS. 

16 There are authorized to be appropriated to carry out 

17 the purposes of this subtitle including programs for light 

18 duty vehicles, in addition to any amounts made available 

19 for these purposes under other Acts—

20 (1) $273,500,000 for fiscal year 2004; 

21 (2) $325,000,000 for fiscal year 2005; 

22 (3) $375,000,000 for fiscal year 2006; 

23 (4) $400,000,000 for fiscal year 2007; and 

24 (5) $425,000,000 for fiscal year 2008. 
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1 SEC. 5030. FUEL CELL PROGRAM AT NATIONAL PARKS. 

2 The Secretary of Energy, in cooperation with the Sec3 retary of Interior and the National Park Service, is au4 thorized to establish a program to provide matching funds 

5 to assist in the deployment of fuel cells at one or more 

6 prominent National Parks. The Secretary of Energy shall 

7 transmit to Congress within 1 year, and annually there8 after, a report describing any activities taken pursuant to 

9 such program. The report shall address whether activities 

10 taken pursuant to such program reduce the environmental 

11 impacts of energy use at National Parks. There are au12 thorized to be appropriated $2,000,000 for each of fiscal 

13 years 2004 through 2010 to carry out the purposes of this 

14 section. 

15 SEC. 5030A. ADVANCED POWER SYSTEM TECHNOLOGY IN16 CENTIVE PROGRAM. 

17 (a) PROGRAM.—The Secretary of Energy is author18 ized to establish an Advanced Power System Technology 

19 Incentive Program to support the deployment of certain 

20 advanced power system technologies and to improve and 

21 protect certain critical governmental, industrial, and com22 mercial processes. Funds provided under this section shall 

23 be used by the Secretary to make incentive payments to 

24 eligible owners or operators of advanced power system 

25 technologies to increase power generation through en26 hanced operational, economic, and environmental perform-
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1 ance. Payments under this section may only be made upon 

2 receipt by the Secretary of an incentive payment applica3 tion establishing an applicant as either—

4 (1) a qualifying advanced power system tech5 nology facility; or 

6 (2) a qualifying security and assured power fa7 cility. 

8 (b) INCENTIVES.—Subject to availability of funds, a 

9 payment of 1.8 cents per kilowatt-hour shall be paid to 

10 the owner or operator of a qualifying advanced power sys11 tem technology facility under this section for electricity 

12 generated at such facility. An additional 0.7 cents per kilo13 watt-hour shall be paid to the owner or operator of a quali14 fying security and assured power facility for electricity 

15 generated at such facility. Any facility qualifying under 

16 this section shall be eligible for an incentive payment for 

17 up to, but not more than, the first 10,000,000 kilowatt18 hours produced in any fiscal year. 

19 (c) ELIGIBILITY.—For purposes of this section—

20 (1) the term ‘‘qualifying advanced power system 

21 technology facility’’ means a facility using an ad22 vanced fuel cell, turbine, or hybrid power system or 

23 power storage system to generate or store electric 

24 energy; and 
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1 (2) the term ‘‘qualifying security and assured 

2 power facility’’ means a qualifying advanced power 

3 system technology facility determined by the Sec4 retary of Energy, in consultation with the Secretary 

5 of Homeland Security, to be in critical need of se6 cure, reliable, rapidly available, high-quality power 

7 for critical governmental, industrial, or commercial 

8 applications. 

9 (d) AUTHORIZATION.—There are authorized to be ap10 propriated to the Secretary of Energy for the purposes 

11 of this section, $10,000,000 for each of the fiscal years 

12 2004 through 2010.

13 Subtitle C—Clean School Buses 

14 SEC. 5031. ESTABLISHMENT OF PILOT PROGRAM. 

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

16 consultation with the Secretary of Transportation and the 

17 Administrator of the Environmental Protection Agency, 

18 shall establish a pilot program for awarding grants on a 

19 competitive basis to eligible entities for the acquisition of 

20 alternative fuel school buses and ultra-low sulfur diesel 

21 school buses. 

22 (b) REQUIREMENTS.—Not later than 3 months after 

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

24 establish and publish in the Federal register grant require25 ments on eligibility for assistance, and on implementation 
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1 of the program established under subsection (a), including 

2 certification requirements to ensure compliance with this 

3 subtitle. 

4 (c) SOLICITATION.—Not later than 6 months after 

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

6 solicit proposals for grants under this section. 

7 (d) ELIGIBLE RECIPIENTS.—A grant shall be award8 ed under this section only—

9 (1) to a local or State governmental entity re10 sponsible for providing school bus service to one or 

11 more public school systems or responsible for the 

12 purchase of school buses; or 

13 (2) to a contracting entity that provides school 

14 bus service to one or more public school systems, if 

15 the grant application is submitted jointly with the 

16 school system or systems which the buses will serve. 

17 (e) TYPES OF GRANTS.—

18 (1) IN GENERAL.—Grants under this section 

19 shall promote the conservation of energy and im20 provement of public health and the environment by 

21 facilitating the acquisition of alternative fuel school 

22 buses and ultra-low sulfur diesel school buses in lieu 

23 of buses manufactured before model year 1977 and 

24 diesel-powered buses manufactured before model 

25 year 1991.
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1 (2) NO ECONOMIC BENEFIT.—Other than the 

2 receipt of the grant, a recipient of a grant under this 

3 section may not receive any economic benefit in con4 nection with the receipt of the grant. 

5 (3) PRIORITY OF GRANT APPLICATIONS.—The 

6 Secretary shall give priority to awarding grants to 

7 applicants who will utilize grants to replace buses 

8 manufactured before model year 1977. 

9 (f) CONDITIONS OF GRANT.—A grant provided under 

10 this section shall include the following conditions: 

11 (1) All buses acquired with funds provided 

12 under the grant shall be operated as part of the 

13 school bus fleet for which the grant was made for a 

14 minimum of 5 years. 

15 (2) Funds provided under the grant may only 

16 be used—

17 (A) to pay the cost, except as provided in 

18 paragraph (3), of new alternative fuel school 

19 buses or ultra-low sulfur diesel school buses, in20 cluding State taxes and contract fees; and 

21 (B) to provide—

22 (i) up to 10 percent of the price of the 

23 alternative fuel buses acquired, for nec24 essary alternative fuel infrastructure if the 
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1 infrastructure will only be available to the 

2 grant recipient; and 

3 (ii) up to 15 percent of the price of 

4 the alternative fuel buses acquired, for nec5 essary alternative fuel infrastructure if the 

6 infrastructure will be available to the grant 

7 recipient and to other bus fleets. 

8 (3) The grant recipient shall be required to pro9 vide at least the lesser of 15 percent of the total cost 

10 of each bus received or $15,000 per bus. 

11 (4) In the case of a grant recipient receiving a 

12 grant to demonstrate ultra-low sulfur diesel school 

13 buses, the grant recipient shall be required to pro14 vide documentation to the satisfaction of the Sec15 retary that diesel fuel containing sulfur at not more 

16 than 15 parts per million is available for carrying 

17 out the purposes of the grant, and a commitment by 

18 the applicant to use such fuel in carrying out the 

19 purposes of the grant. 

20 (g) BUSES.—Funding under a grant made under this 

21 section may be used to facilitate the use only of new alter22 native fuel school buses or ultra-low sulfur diesel school 

23 buses—

24 (1) with a gross vehicle weight of greater than 

25 14,000 pounds; 
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1 (2) that are powered by a heavy duty engine; 

2 (3) that, in the case of alternative fuel school 

3 buses, emit not more than—

4 (A) for buses manufactured in model year 

5 2002, 2.5 grams per brake horsepower-hour of 

6 nonmethane hydrocarbons and oxides of nitro7 gen and .01 grams per brake horsepower-hour 

8 of particulate matter; and 

9 (B) for buses manufactured in model years 

10 2003 through 2006, 1.8 grams per brake horse11 power-hour of nonmethane hydrocarbons and 

12 oxides of nitrogen and .01 grams per brake 

13 horsepower-hour of particulate matter; and 

14 (4) that, in the case of ultra-low sulfur diesel 

15 school buses, emit not more than—

16 (A) for buses manufactured in model years 

17 2002 through 2003, 3.0 grams per brake horse18 power-hour of oxides of nitrogen and .01 grams 

19 per brake horsepower-hour of particulate mat20 ter; and 

21 (B) for buses manufactured in model years 

22 2004 through 2006, 2.5 grams per brake horse23 power-hour of nonmethane hydrocarbons and 

24 oxides of nitrogen and .01 grams per brake 

25 horsepower-hour of particulate matter, 
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1 except that under no circumstances shall buses be 

2 acquired under this section that emit nonmethane 

3 hydrocarbons, oxides of nitrogen, or particulate mat4 ter at a rate greater than the best performing tech5 nology of the same class of ultra-low sulfur diesel 

6 school buses commercially available at the time the 

7 grant is made. 

8 (h) DEPLOYMENT AND DISTRIBUTION.—The Sec9 retary shall seek to the maximum extent practicable to 

10 achieve nationwide deployment of alternative fuel school 

11 buses and ultra-low sulfur diesel school buses through the 

12 program under this section, and shall ensure a broad geo13 graphic distribution of grant awards, with a goal of no 

14 State receiving more than 10 percent of the grant funding 

15 made available under this section for a fiscal year. 

16 (i) LIMIT ON FUNDING.—The Secretary shall provide 

17 not less than 20 percent and not more than 25 percent 

18 of the grant funding made available under this section for 

19 any fiscal year for the acquisition of ultra-low sulfur diesel 

20 school buses. 

21 (j) REDUCTION OF SCHOOL BUS IDLING.—Each 

22 local educational agency (as defined in section 9101 of the 

23 Elementary and Secondary Education Act of 1965 (20 

24 U.S.C. 7801)) that receives Federal funds under the Ele25 mentary and Secondary Education Act of 1965 (20 U.S.C. 
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1 6301 et seq.) is encouraged to develop a policy, consistent 

2 with the health, safety, and welfare of students and the 

3 proper operation and maintenance of school buses, to re4 duce the incidence of unnecessary school bus idling at 

5 schools when picking up and unloading students. 

6 (k) ANNUAL REPORT.—Not later than January 31 

7 of each year, the Secretary of Energy shall provide a re8 port evaluating implementation of the program under this 

9 section to the Congress. Such report shall include the total 

10 number of grant applications received, the number and 

11 types of alternative fuel school buses and ultra-low sulfur 

12 diesel school buses requested in grant applications, a list 

13 of grants awarded and the criteria used to select the grant 

14 recipients, certified engine emission levels of all buses pur15 chased under the program, and any other information the 

16 Secretary considers appropriate. 

17 (l) DEFINITIONS.—For purposes of this section—

18 (1) the term ‘‘alternative fuel school bus’’ 

19 means a school bus powered substantially by elec20 tricity (including electricity supplied by a fuel cell), 

21 or by liquefied natural gas, compressed natural gas, 

22 liquefied petroleum gas, hydrogen, propane, or meth23 anol or ethanol at no less than 85 percent by vol24 ume;
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1 (2) the term ‘‘idling’’ means operating an en2 gine while remaining stationary for more than ap3 proximately 3 minutes, except that such term does 

4 not apply to routine stoppages associated with traf5 fic movement or congestion; and 

6 (3) the term ‘‘ultra-low sulfur diesel school 

7 bus’’ means a school bus powered by diesel fuel 

8 which contains sulfur at not more than 15 parts per 

9 million. 

10 SEC. 5032. FUEL CELL BUS DEVELOPMENT AND DEM11 ONSTRATION PROGRAM. 

12 (a) ESTABLISHMENT OF PROGRAM.—The Secretary 

13 shall establish a program for entering into cooperative 

14 agreements with private sector fuel cell bus developers for 

15 the acquisition of fuel cell-powered school buses, and sub16 sequently with not less than 2 units of local government 

17 using natural gas-powered school buses and such private 

18 sector fuel cell bus developers to facilitate the use of fuel 

19 cell-powered school buses. 

20 (b) COST SHARING.—The non-Federal contribution 

21 for activities funded under this section shall be not less 

22 than 20 percent for fuel infrastructure development activi23 ties. 

24 (c) FUNDING.—No more than $25,000,000 of the 

25 amounts authorized under section 5033 may be used for 
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1 carrying out this section for the period encompassing fis2 cal years 2003 through 2006. 

3 (d) REPORTS TO CONGRESS.—Not later than 3 years 

4 after the date of the enactment of this Act, and not later 

5 than October 1, 2006, the Secretary shall transmit to the 

6 Congress a report that—

7 (1) evaluates the process of converting natural 

8 gas infrastructure to accommodate fuel cell-powered 

9 school buses; and 

10 (2) assesses the overall impact on energy con11 servation, public health, and the environment as a 

12 result of this program under this section. 

13 SEC. 5033. AUTHORIZATION OF APPROPRIATIONS. 

14 There are authorized to be appropriated to the Sec15 retary for carrying out this subtitle, to remain available 

16 until expended—

17 (1) $60,000,000 for fiscal year 2004; 

18 (2) $70,000,000 for fiscal year 2005; and 

19 (3) $80,000,000 for fiscal year 2006. 

20 Subtitle D—Advanced Vehicles 

21 SEC. 5041. DEFINITIONS. 

22 For the purposes of this subtitle, the following defini23 tions apply: 

24 (1) ALTERNATIVE FUELED VEHICLE..—The 

25 term ‘‘alternative fueled vehicle’’ means a vehicle 
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1 propelled solely on an alternative fuel as defined in 

2 section 301 of the Energy Policy Act (42 U.S.C. 

3 13211), except the term does not include any vehicle 

4 that the Secretary determines, by rule, does not 

5 yield substantial environmental benefits over a vehi6 cle operating solely on gasoline or diesel derived 

7 from fossil fuels. 

8 (2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

9 vehicle’’ means a vehicle propelled by one or more 

10 cells that convert chemical energy directly into elec11 tricity by combining oxygen with hydrogen fuel 

12 which is stored on board the vehicle in any form and 

13 may or may not require reformation prior to use. 

14 (3) HYBRID VEHICLE.—The term ‘‘hybrid vehi15 cle’’ means a medium or heavy duty vehicle propelled 

16 by an internal combustion engine using any combus17 tible fuel and an onboard rechargeable battery stor18 age system. 

19 (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 

20 term ‘‘neighborhood electric vehicle’’ means a motor 

21 vehicle that qualifies as both—

22 (A) a low-speed vehicle, as such term is de23 fined in section 571.3(b) of title 49, Code of 

24 Federal Regulations; and 
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1 (B) a zero-emission vehicle, as such term is 

2 defined in section 86.1702–99 of title 40, Code 

3 of Federal Regulations. 

4 (5) PILOT PROGRAM.—The term ‘‘pilot pro5 gram’’ means the competitive grant program estab6 lished under section 5042. 

7 (6) ULTRA-LOW SULFUR DIESEL VEHICLE.—

8 The term ‘‘ultra-low sulfur diesel vehicle’’ means a 

9 vehicle manufactured in model years 2002 through 

10 2006 powered by a heavy-duty diesel engine that—

11 (A) is fueled by diesel fuel which contains 

12 sulfur at not more than 15 parts per million; 

13 and 

14 (B) emits not more than the lesser of—

15 (i) for vehicles manufactured in—

16 (I) model years 2002 and 2003, 

17 3.0 grams per brake horsepower-hour 

18 of oxides of nitrogen and .01 grams 

19 per brake horsepower-hour of particu20 late matter; and 

21 (II) model years 2004 through 

22 2006, 2.5 grams per brake horse23 power-hour of nonmethane hydro24 carbons and oxides of nitrogen and 
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1 .01 grams per brake horsepower-hour 

2 of particulate matter; or 

3 (ii) the emissions of nonmethane hy4 drocarbons, oxides of nitrogen, and partic5 ulate matter of the best performing tech6 nology of ultra-low sulfur diesel vehicles of 

7 the same class and application that are 

8 commercially available. 

9 SEC. 5042. PILOT PROGRAM. 

10 (a) ESTABLISHMENT.—The Secretary shall establish 

11 a competitive grant pilot program, to be administered 

12 through the Clean Cities Program of the Department of 

13 Energy, to provide not more than 10 geographically dis14 persed project grants to State governments, local govern15 ments, or metropolitan transportation authorities to carry 

16 out a project or projects for the purposes described in sub17 section (b). 

18 (b) GRANT PURPOSES.—Grants under this section 

19 may be used for the following purposes: 

20 (1) The acquisition of alternative fueled vehicles 

21 or fuel cell vehicles, including—

22 (A) passenger vehicles including neighbor23 hood electric vehicles; and 

24 (B) motorized two-wheel bicycles, scooters, 

25 or other vehicles for use by law enforcement 
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1 personnel or other State or local government or 

2 metropolitan transportation authority employ3 ees. 

4 (2) The acquisition of alternative fueled vehi5 cles, hybrid vehicles, or fuel cell vehicles, including—

6 (A) buses used for public transportation or 

7 transportation to and from schools; 

8 (B) delivery vehicles for goods or services; 

9 and 

10 (C) ground support vehicles at public air11 ports, including vehicles to carry baggage or 

12 push airplanes away from terminal gates. 

13 (3) The acquisition of ultra-low sulfur diesel ve14 hicles. 

15 (4) Infrastructure necessary to directly support 

16 an alternative fueled vehicle, fuel cell vehicle, or hy17 brid vehicle project funded by the grant, including 

18 fueling and other support equipment. 

19 (5) Operation and maintenance of vehicles, in20 frastructure, and equipment acquired as part of a 

21 project funded by the grant. 

22 (c) APPLICATIONS.—

23 (1) REQUIREMENTS.—The Secretary shall issue 

24 requirements for applying for grants under the pilot 

25 program. At a minimum, the Secretary shall require
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1 that applications be submitted by the head of a 

2 State or local government or a metropolitan trans3 portation authority, or any combination thereof, and 

4 a registered participant in the Clean Cities Program 

5 of the Department of Energy, and shall include—

6 (A) a description of the projects proposed 

7 in the application, including how they meet the 

8 requirements of this subtitle; 

9 (B) an estimate of the ridership or degree 

10 of use of the projects proposed in the applica11 tion; 

12 (C) an estimate of the air pollution emis13 sions reduced and fossil fuel displaced as a re14 sult of the projects proposed in the application, 

15 and a plan to collect and disseminate environ16 mental data, related to the projects to be fund17 ed under the grant, over the life of the projects; 

18 (D) a description of how the projects pro19 posed in the application will be sustainable 

20 without Federal assistance after the completion 

21 of the term of the grant; 

22 (E) a complete description of the costs of 

23 each project proposed in the application, includ24 ing acquisition, construction, operation, and 
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1 maintenance costs over the expected life of the 

2 project; 

3 (F) a description of which costs of the 

4 projects proposed in the application will be sup5 ported by Federal assistance under this subtitle; 

6 and 

7 (G) documentation to the satisfaction of 

8 the Secretary that diesel fuel containing sulfur 

9 at not more than 15 parts per million is avail10 able for carrying out the projects, and a com11 mitment by the applicant to use such fuel in 

12 carrying out the projects. 

13 (2) PARTNERS.—An applicant under paragraph 

14 (1) may carry out projects under the pilot program 

15 in partnership with public and private entities. 

16 (d) SELECTION CRITERIA.—In evaluating applica17 tions under the pilot program, the Secretary shall consider 

18 each applicant’s previous experience with similar projects 

19 and shall give priority consideration to applications that—

20 (1) are most likely to maximize protection of 

21 the environment; 

22 (2) demonstrate the greatest commitment on 

23 the part of the applicant to ensure funding for the 

24 proposed projects and the greatest likelihood that 

25 each project proposed in the application will be 
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1 maintained or expanded after Federal assistance 

2 under this subtitle is completed; and 

3 (3) exceed the minimum requirements of sub4 section (c)(1)(A). 

5 (e) PILOT PROJECT REQUIREMENTS.—

6 (1) MAXIMUM AMOUNT.—The Secretary shall 

7 not provide more than $20,000,000 in Federal as8 sistance under the pilot program to any applicant. 

9 (2) COST SHARING.—The Secretary shall not 

10 provide more than 50 percent of the cost, incurred 

11 during the period of the grant, of any project under 

12 the pilot program. 

13 (3) MAXIMUM PERIOD OF GRANTS.—The Sec14 retary shall not fund any applicant under the pilot 

15 program for more than 5 years. 

16 (4) DEPLOYMENT AND DISTRIBUTION.—The 

17 Secretary shall seek to the maximum extent prac18 ticable to ensure a broad geographic distribution of 

19 project sites. 

20 (5) TRANSFER OF INFORMATION AND KNOWL21 EDGE.—The Secretary shall establish mechanisms to 

22 ensure that the information and knowledge gained 

23 by participants in the pilot program are transferred 

24 among the pilot program participants and to other 
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1 interested parties, including other applicants that 

2 submitted applications. 

3 (f) SCHEDULE.—

4 (1) PUBLICATION.—Not later than 3 months 

5 after the date of the enactment of this Act, the Sec6 retary shall publish in the Federal Register, Com7 merce Business Daily, and elsewhere as appropriate, 

8 a request for applications to undertake projects 

9 under the pilot program. Applications shall be due 

10 within 6 months of the publication of the notice. 

11 (2) SELECTION.—Not later than 6 months after 

12 the date by which applications for grants are due, 

13 the Secretary shall select by competitive, peer review 

14 all applications for projects to be awarded a grant 

15 under the pilot program. 

16 (g) LIMIT ON FUNDING.—The Secretary shall pro17 vide not less than 20 percent and not more than 25 per18 cent of the grant funding made available under this sec19 tion for the acquisition of ultra-low sulfur diesel vehicles. 

20 SEC. 5043. REPORTS TO CONGRESS. 

21 (a) INITIAL REPORT.—Not later than 2 months after 

22 the date grants are awarded under this subtitle, the Sec23 retary shall transmit to the Congress a report con24 taining—
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1 (1) an identification of the grant recipients and 

2 a description of the projects to be funded; 

3 (2) an identification of other applicants that 

4 submitted applications for the pilot program; and 

5 (3) a description of the mechanisms used by the 

6 Secretary to ensure that the information and knowl7 edge gained by participants in the pilot program are 

8 transferred among the pilot program participants 

9 and to other interested parties, including other ap10 plicants that submitted applications. 

11 (b) EVALUATION.—Not later than 3 years after the 

12 date of the enactment of this Act, and annually thereafter 

13 until the pilot program ends, the Secretary shall transmit 

14 to the Congress a report containing an evaluation of the 

15 effectiveness of the pilot program, including an assessment 

16 of the benefits to the environment derived from the 

17 projects included in the pilot program as well as an esti18 mate of the potential benefits to the environment to be 

19 derived from widespread application of alternative fueled 

20 vehicles and ultra-low sulfur diesel vehicles. 

21 SEC. 5044. AUTHORIZATION OF APPROPRIATIONS. 

22 There are authorized to be appropriated to the Sec23 retary $200,000,000 to carry out this subtitle, to remain 

24 available until expended.
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1 Subtitle E—Hydrogen Fuel Cell 

2 Heavy-Duty Vehicles 

3 SEC. 5051. DEFINITION. 

4 For the purposes of this subtitle, the term ‘‘advanced 

5 vehicle technologies program’’ means the program created 

6 pursuant to section 5506 of title 49, United States Code. 

7 SEC. 5052. FINDINGS. 

8 The Congress makes the following findings: 

9 (1) The Department of Energy and the Depart10 ment of Transportation jointly developed the consor11 tium-based advanced vehicle technologies program to 

12 develop energy efficient and clean heavy-duty vehi13 cles in 1998. 

14 (2) The majority of clean fuel vehicles in oper15 ation today are transit buses. 

16 (3) Hydrogen fuel cell heavy-duty vehicle bus 

17 deployments can most appropriately advance hydro18 gen fuel cell technology development due to central19 ized refueling, stable duty cycles, and fixed routes. 

20 (4) Hydrogen fuel cell heavy-duty vehicle bus 

21 deployments are the most effective manner in which 

22 to advance technology developments for public 

23 awareness, consumption, and acceptance. 
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1 SEC. 5053. HYDROGEN FUEL CELL BUSES. 

2 The Secretary of Energy, through the advanced vehi3 cle technologies program, in coordination with the Sec4 retary of Transportation, shall advance the development 

5 of fuel cell bus technologies by providing funding for 4 

6 demonstration sites that—

7 (1) have or will soon have hydrogen infrastruc8 ture for fuel cell bus operation; and 

9 (2) are operated by entities with experience in 

10 the development of fuel cell bus technologies, 

11 to enable the widespread utilization of fuel cell buses. Such 

12 demonstrations shall address the reliability of fuel cell 

13 heavy-duty vehicles, expense, infrastructure, containment, 

14 storage, safety, training, and other issues. 

15 SEC. 5054. AUTHORIZATION OF APPROPRIATIONS. 

16 There are authorized to be appropriated to the Sec17 retary of Energy $10,000,000 for each of the fiscal years 

18 2004 through 2008 for carrying out this subtitle. 

19 Subtitle F—Miscellaneous 

20 SEC. 5061. RAILROAD EFFICIENCY. 

21 (a) ESTABLISHMENT.—The Secretary shall, in con22 junction with the Secretary of Transportation and the Ad23 ministrator of the Environmental Protection Agency, es24 tablish a public-private research partnership involving the 

25 Federal Government, the railroad industry, locomotive 

26 manufacturers and equipment suppliers, and the research 
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1 facility owned by the Federal Railroad Administration and 

2 operated by contract. The goal of the research partnership 

3 shall include developing and demonstrating locomotive 

4 technologies that increase fuel economy, reduce emissions, 

5 and lower costs. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to carry out the require8 ments of this section $25,000,000 for fiscal year 2004, 

9 $30,000,000 for fiscal year 2005, and $35,000,000 for fis10 cal year 2006. 

11 SEC. 5062. MOBILE EMISSION REDUCTIONS TRADING AND 

12 CREDITING. 

13 Within 180 days after the date of enactment of this 

14 Act, the Administrator of the Environmental Protection 

15 Agency shall provide a report to the Congress on the Envi16 ronmental Protection Agency’s experience with the trading 

17 of mobile source emission reduction credits for use by own18 ers and operators of stationary source emission sources 

19 to meet emission offset requirements within a nonattain20 ment area. The report shall describe—

21 (1) projects approved by the Environmental 

22 Protection Agency that include the trading of mobile 

23 source emission reduction credits for use by sta24 tionary sources in complying with offset require25 ments, including project and stationary sources loca-
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1 tion, volumes of emissions offset and traded, a de2 scription of the sources of mobile emission reduction 

3 credits, and, if available, the cost of the credits; 

4 (2) the significant issues identified by the Envi5 ronmental Protection Agency in its consideration 

6 and approval of trading in such projects; 

7 (3) the requirements for monitoring and assess8 ing the air quality benefits of any approved project; 

9 (4) the statutory authority upon which the En10 vironmental Protection Agency has based approval 

11 of such projects; 

12 (5) an evaluation of how the resolution of issues 

13 in approved projects could be utilized in other 

14 projects; and 

15 (6) any other issues the Environmental Protec16 tion Agency considers relevant to the trading and 

17 generation of mobile source emission reduction cred18 its for use by stationary sources or for other pur19 poses. 

20 SEC. 5063. IDLE REDUCTION TECHNOLOGIES. 

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

22 (1) IDLE REDUCTION TECHNOLOGY.—The term 

23 ‘‘idle reduction technology’’ means a device or sys24 tem of devices utilized to reduce long-duration idling 

25 of a heavy-duty vehicle. 
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1 (2) HEAVY-DUTY VEHICLE.—The term ‘‘heavy2 duty vehicle’’ means a vehicle that has a gross vehi3 cle weight rating greater than 26,000 pounds and is 

4 powered by a diesel engine. 

5 (3) LONG-DURATION IDLING.—The term ‘‘long6 duration idling’’ means the operation of a main drive 

7 engine, for a period greater than 15 consecutive 

8 minutes, where the main drive engine is not engaged 

9 in gear. Such term does not apply to routine stop10 pages associated with traffic movement or conges11 tion. 

12 (b) STUDIES OF THE BENEFITS OF IDLE REDUCTION

13 TECHNOLOGIES.—

14 (1) POTENTIAL FUEL SAVINGS.—Not later than 

15 90 days after the date of enactment of this section, 

16 the Secretary of Energy shall, in consultation with 

17 the Secretary of Transportation, commence a study 

18 to analyze the potential fuel savings resulting from 

19 use of idle reduction technologies. 

20 (2) RECOGNITION OF BENEFITS OF ADVANCED

21 IDLE REDUCTION TECHNOLOGIES.—Within 90 days 

22 after the date of enactment of this section, the Ad23 ministrator of the Environmental Protection Agency 

24 is directed to commence a review of the Agency’s 

25 mobile source air emissions models used under the 
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1 Clean Air Act to determine whether such models ac2 curately reflect the emissions resulting from long-du3 ration idling of heavy-duty trucks and other vehicles 

4 and engines, and shall update those models as the 

5 Administrator deems appropriate. Additionally, with6 in 90 days after the date of enactment of this sec7 tion, the Administrator shall commence a review as 

8 to the appropriate emissions reductions credit that 

9 should be allotted under the Clean Air Act for the 

10 use of advanced idle reduction technologies, and 

11 whether such credits should be subject to an emis12 sions trading system, and shall revise Agency regula13 tions and guidance as the Administrator deems ap14 propriate. 

15 (3) IDLING TECHNOLOGIES.—Not later than 

16 180 days after the date of the enactment of this sec17 tion, the Secretary of Energy, in consultation with 

18 the Secretary of Transportation and the Adminis19 trator of the Environmental Protection Agency, shall 

20 commence a study to analyze where heavy duty and 

21 other vehicles stop for long duration idling. 

22 (c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) 

23 of title 23, United States Code, is amended by adding at 

24 the end the following: ‘‘In instances where an idle reduc25 tion technology is installed onboard a motor vehicle, the
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1 maximum gross vehicle weight limit and the axle weight 

2 limit for any motor vehicle equipped with an idling reduc3 tion system may be increased by an amount necessary to 

4 compensate for the additional weight of the idling reduc5 tion system, except that the weight limit increase shall be 

6 no greater than 400 pounds.’’. 

7 SEC. 5064. STUDY OF AVIATION FUEL CONSERVATION AND 

8 EMISSIONS. 

9 The Administrator of the Federal Aviation Adminis10 tration and the Administrator of the Environmental Pro11 tection Agency shall jointly commence a study within 60 

12 days after the date of enactment of this Act to identify 

13 the impact of aircraft emissions on air quality in non14 attainment areas and to identify ways to promote fuel con15 servation measures for aviation, enhance fuel efficiency, 

16 and reduce emissions. As part of this study, the Adminis17 trator of the Federal Aviation Administration and the Ad18 ministrator of the Environmental Protection Agency shall 

19 focus on how air traffic management inefficiencies, such 

20 as aircraft idling at airports, result in unnecessary fuel 

21 burn and air emissions. Within 180 days after the com22 mencement of the study, the Administrator of the Federal 

23 Aviation Administration and the Administrator of the En24 vironmental Protection Agency shall submit a report to 

25 the Committees on Energy and Commerce and Transpor-
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1 tation and Infrastructure of the House of Representatives 

2 and the Committees on Environment and Public Works 

3 and Commerce, Science, and Transportation of the Senate 

4 containing the results of the study and recommendations 

5 as to how unnecessary fuel use and emissions affecting 

6 air quality may be reduced, without impacting safety and 

7 security, increasing individual aircraft noise, and taking 

8 into account all aircraft emissions and their relative im9 pact on human health. 

10 SEC. 5065. DIESEL FUELED VEHICLES. 

11 (a) DIESEL COMBUSTION AND AFTER TREATMENT

12 TECHNOLOGIES.—The Secretary of Energy shall accel13 erate efforts to improve diesel combustion and after-treat14 ment technologies for use in diesel fueled motor vehicles. 

15 (b) GOAL.—

16 (1) COMPLIANCE WITH TIER 2 EMISSION

17 STANDARDS BY 2010.—The Secretary shall carry out 

18 subsection (a) with a view to developing and dem19 onstrating diesel technology meeting tier 2 emission 

20 standards not later than 2010. 

21 (2) TIER 2 EMISSION STANDARDS DEFINED.—

22 In this subsection, the term ‘‘tier 2 emission stand23 ards’’ means the motor vehicle emission standards 

24 promulgated by the Administrator of the Environ25 mental Protection Agency on February 10, 2000, 
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1 under sections 202 and 211 of the Clean Air Act to 

2 apply to passenger cars, light trucks, and larger pas3 senger vehicles of model years after the 2003 vehicle 

4 model year. 

5 SEC. 5066. HYBRID VEHICLES. 

6 (a) IN GENERAL.—Notwithstanding section 

7 102(a)(1) of title 23, United States Code, a State may, 

8 for the purpose of promoting energy conservation, permit 

9 a hybrid vehicle which is either a passenger automobile 

10 or light duty truck with fewer than 2 occupants to operate 

11 in high occupancy vehicle lanes. 

12 (b) DEFINITION.—In this section, the term ‘‘hybrid 

13 vehicle’’ means a motor vehicle which draws propulsion en14 ergy from both—

15 (1) an internal combustion or heat engine using 

16 combustible fuel; and 

17 (2) an onboard rechargeable energy storage sys18 tem.

19 SEC. 5067. WAIVERS OF ALTERNATIVE FUELED VEHICLE 

20 FUELING REQUIREMENT. 

21 Section 400AA(a)(3)(E) of the Energy Policy and 

22 Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 

23 to read as follows: 

24 ‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 

25 section shall be operated on alternative fuels unless the 
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1 Secretary determines that an agency needs a waiver of 

2 such requirement for vehicles in the fleet of the agency 

3 in a particular geographic area where—

4 ‘‘(I) the alternative fuel otherwise required to 

5 be used in the vehicle is not reasonably available to 

6 retail purchasers of the fuel, as certified to the Sec7 retary by the head of the agency; or 

8 ‘‘(II) the cost of the alternative fuel otherwise 

9 required to be used in the vehicle is unreasonably 

10 more expensive compared to gasoline, as certified by 

11 the head of the agency. 

12 ‘‘(ii) The Secretary shall monitor compliance with 

13 this subparagraph by all such fleets and shall report annu14 ally to the Congress on the extent to which the require15 ments of this subparagraph are being achieved. The report 

16 shall include information on annual reductions achieved 

17 of petroleum-based fuels and the problems, if any, encoun18 tered in acquiring alternative fuels.’’.

19 TITLE VI—DOE PROGRAMS 

20 SEC. 6001. PURPOSES. 

21 The purposes of this title are to—

22 (1) contribute to a national energy strategy 

23 through Department of Energy programs that pro24 mote the production and conservation of energy in 

25 partnership with industry; 
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1 (2) protect and strengthen the Nation’s econ2 omy, standard of living, and national security by re3 ducing dependence on imported energy; 

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

5 lowest total cost to the Nation, giving balanced and 

6 comprehensive consideration to technologies that im7 prove the efficiency of energy end uses and that en8 hance energy supply; 

9 (4) reduce the environmental impacts of energy 

10 production, distribution, transportation, and use; 

11 (5) help increase domestic production of energy, 

12 increase the availability of hydrocarbon reserves, and 

13 lower energy prices; and 

14 (6) stimulate economic growth and enhance the 

15 ability of United States companies to compete in fu16 ture markets for advanced energy technologies. 

17 SEC. 6002. DEFINITIONS. 

18 For purposes of this title: 

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

20 means the Department of Energy. 

21 (2) DEPARTMENTAL MISSION.—The term ‘‘de22 partmental mission’’ means any of the functions 

23 vested in the Secretary of Energy by the Depart24 ment of Energy Organization Act (42 U.S.C. 7101 

25 et seq.) or other law.
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1 (3) INSTITUTION OF HIGHER EDUCATION.—The 

2 term ‘‘institution of higher education’’ has the 

3 meaning given that term in section 101(a) of the 

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

5 (4) JOINT VENTURE.—The term ‘‘joint ven6 ture’’ has the meaning given that term under section 

7 2 of the National Cooperative Research and Produc8 tion Act of 1993 (15 U.S.C. 4301). 

9 (5) NATIONAL LABORATORY.—The term ‘‘Na10 tional Laboratory’’ means any of the following lab11 oratories owned by the Department: 

12 (A) Ames National Laboratory. 

13 (B) Argonne National Laboratory. 

14 (C) Brookhaven National Laboratory. 

15 (D) Fermi National Laboratory. 

16 (E) Idaho National Engineering and Envi17 ronmental Laboratory. 

18 (F) Lawrence Berkeley National Labora19 tory. 

20 (G) Lawrence Livermore National Labora21 tory. 

22 (H) Los Alamos National Laboratory. 

23 (I) National Energy Technology Labora24 tory. 
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1 (J) National Renewable Energy Labora2 tory. 

3 (K) Oak Ridge National Laboratory. 

4 (L) Pacific Northwest National Labora5 tory. 

6 (M) Princeton Plasma Physics Laboratory. 

7 (N) Sandia National Laboratories. 

8 (O) Thomas Jefferson National Accel9 erator Facility. 

10 (6) NONMILITARY ENERGY LABORATORY.—The 

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

12 the following laboratories of the Department: 

13 (A) Ames National Laboratory. 

14 (B) Argonne National Laboratory. 

15 (C) Brookhaven National Laboratory. 

16 (D) Fermi National Laboratory. 

17 (E) Lawrence Berkeley National Labora18 tory. 

19 (F) Oak Ridge National Laboratory. 

20 (G) Pacific Northwest National Labora21 tory. 

22 (H) Princeton Plasma Physics Laboratory. 

23 (I) Stanford Linear Accelerator Center. 

24 (J) Thomas Jefferson National Accelerator 

25 Facility. 
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1 (7) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Energy. 

3 Subtitle A—Energy Efficiency 

4 PART 1—AUTHORIZATION OF APPROPRIATIONS 

5 SEC. 6011. ENERGY EFFICIENCY. 

6 (a) IN GENERAL.—The following sums are author7 ized to be appropriated to the Secretary for energy effi8 ciency and conservation activities, including activities au9 thorized under this subtitle: 

10 (1) For fiscal year 2003, $560,000,000. 

11 (2) For fiscal year 2004, $616,000,000. 

12 (3) For fiscal year 2005, $695,000,000. 

13 (4) For fiscal year 2006, $772,000,000. 

14 (5) For fiscal year 2007, $865,000,000. 

15 (b) ALLOCATIONS.—From amounts authorized under 

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

17 (1) LIGHTING SYSTEMS.—For activities under 

18 section 6021, $10,000,000 for fiscal year 2003 and 

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

20 2007. 

21 (2) SECONDARY ELECTRIC VEHICLE BATTERY

22 USE PROGRAM.—For activities under section 6032—

23 (A) for fiscal year 2003, $1,000,000; 

24 (B) for fiscal year 2004, $4,000,000; 

25 (C) for fiscal year 2005, $7,000,000; 
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1 (D) for fiscal year 2006, $7,000,000; and 

2 (E) for fiscal year 2007, $7,000,000. 

3 (c) EXTENDED AUTHORIZATION.—There are author4 ized to be appropriated to the Secretary for activities 

5 under section 6021, $50,000,000 for each of fiscal years 

6 2008 through 2012. 

7 (d) LIMITS ON USE OF FUNDS.—None of the funds 

8 authorized to be appropriated under this section may be 

9 used for—

10 (1) the promulgation and implementation of en11 ergy efficiency regulations; 

12 (2) the Weatherization Assistance Program 

13 under part A of title IV of the Energy Conservation 

14 and Production Act; 

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

16 title III of the Energy Policy and Conservation Act; 

17 or 

18 (4) the Federal Energy Management Program 

19 under part 3 of title V of the National Energy Con20 servation Policy Act. 

21 PART 2—LIGHTING SYSTEMS

22 SEC. 6021. NEXT GENERATION LIGHTING INITIATIVE. 

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

24 Next Generation Lighting Initiative in accordance with 

25 this section to support activities related to advanced solid-
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1 state lighting technologies based on white light emitting 

2 diodes. 

3 (b) OBJECTIVES.—The objectives of the initiative 

4 shall be—

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

6 lighting technologies based on white light emitting 

7 diodes that, compared to incandescent and fluores8 cent lighting technologies, are—

9 (A) longer lasting; 

10 (B) more energy-efficient; and 

11 (C) cost-competitive; 

12 (2) to develop an inorganic white light emitting 

13 diode that has an efficiency of 160 lumens per watt 

14 and a 10-year lifetime; and 

15 (3) to develop an organic white light emitting 

16 diode with an efficiency of 100 lumens per watt with 

17 a 5-year lifetime that—

18 (A) illuminates over a full color spectrum; 

19 (B) covers large areas over flexible sur20 faces; and 

21 (C) does not contain harmful pollutants, 

22 such as mercury, typical of fluorescent lamps. 

23 (c) CONSORTIUM.—

24 (1) IN GENERAL.—The Secretary shall establish 

25 the Next Generation Lighting Initiative through a 
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1 private consortium (which may include private firms, 

2 trade associations and institutions of higher edu3 cation), which the Secretary shall select through a 

4 competitive process. Each proposed consortium shall 

5 submit to the Secretary such information as the Sec6 retary may require, including a program plan agreed 

7 to by all participants of the consortium. 

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

9 structured as a joint venture among the participants 

10 of the consortium. The Secretary shall serve on the 

11 governing council of the consortium. 

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

13 as the consortium under paragraph (1), an applicant 

14 must be broadly representative of United States 

15 solid-state lighting research, development, and man16 ufacturing expertise as a whole. 

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

18 grants to the consortium, which the consortium may 

19 disburse to researchers, including those who are not 

20 participants of the consortium. 

21 (B) To receive a grant, the consortium must 

22 provide a description to the Secretary of the pro23 posed activities and list the parties that will receive 

24 funding.
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1 (5) NATIONAL LABORATORIES.—National Lab2 oratories may participate in the activities described 

3 in this section, and may receive funds from the con4 sortium. 

5 (6) INTELLECTUAL PROPERTY.—Participants in 

6 the consortium and the Federal Government shall 

7 have royalty-free nonexclusive rights to use intellec8 tual property derived from activities funded pursu9 ant to this subsection. 

10 (d) DEVELOPMENT, DEMONSTRATION, AND COM11 MERCIAL APPLICATION.—The Secretary shall carry out 

12 the development, demonstration, and commercial applica13 tion activities of the Next Generation Lighting Initiative 

14 through awards to private firms, trade associations, and 

15 institutions of higher education. In selecting awardees, the 

16 Secretary may give preference to members of the consor17 tium selected pursuant to subsection (c). 

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

19 shall formulate an annual operating plan which shall in20 clude priorities, technical milestones, and plans for tech21 nology transfer, and which shall be subject to approval by 

22 the Secretary. 

23 (2) The Secretary shall enter into an arrangement 

24 with the National Academy of Sciences to conduct periodic 

25 reviews of the Next Generation Lighting Initiative. The 
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1 Academy shall review the priorities, technical milestones, 

2 and plans for technology transfer established under para3 graph (1) and evaluate the progress toward achieving 

4 them. The Secretary shall consider the results of such re5 views in evaluating the plans submitted under paragraph 

6 (1). 

7 (f) AUDIT.—The Secretary shall retain an inde8 pendent, commercial auditor to perform an audit of the 

9 consortium to determine the extent to which the funds au10 thorized by this section have been expended in a manner 

11 consistent with the purposes of this section. The auditor 

12 shall transmit a report annually to the Secretary, who 

13 shall transmit the report to the Congress, along with a 

14 plan to remedy any deficiencies cited in the report. 

15 (g) SUNSET.—The Next Generation Lighting Initia16 tive shall terminate no later than September 30, 2013. 

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

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

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

20 semiconducting device package and delivery system 

21 that produces white light using externally applied 

22 voltage. 

23 (2) INORGANIC WHITE LIGHT EMITTING

24 DIODE.—The term ‘‘inorganic white light emitting 

25 diode’’ means an inorganic semiconducting package 
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1 that produces white light using externally applied 

2 voltage. 

3 (3) ORGANIC WHITE LIGHT EMITTING DIODE.—

4 The term ‘‘organic white light emitting diode’’ 

5 means an organic semiconducting compound that 

6 produces white light using externally applied voltage. 

7 PART 3—VEHICLES 

8 SEC. 6031. DEFINITIONS. 

9 For purposes of this part, the term—

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

11 that previously has been used to provide motive 

12 power in a vehicle powered in whole or in part by 

13 electricity; and 

14 (2) ‘‘associated equipment’’ means equipment 

15 located where the batteries will be used that is nec16 essary to enable the use of the energy stored in the 

17 batteries. 

18 SEC. 6032. ESTABLISHMENT OF SECONDARY ELECTRIC VE19 HICLE BATTERY USE PROGRAM. 

20 (a) PROGRAM.—The Secretary shall establish and 

21 conduct a program for the secondary use of batteries. 

22 Such program shall be—

23 (1) designed to demonstrate the use of batteries 

24 in secondary application, including utility and com25 mercial power storage and power quality; 
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1 (2) structured to evaluate the performance, in2 cluding useful service life and costs, of such bat3 teries in field operations, and evaluate the necessary 

4 supporting infrastructure, including reuse and dis5 posal of batteries; and 

6 (3) coordinated with ongoing secondary battery 

7 use programs at the National Laboratories and in 

8 industry. 

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

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

11 shall solicit proposals to demonstrate the secondary use 

12 of batteries and associated equipment and supporting in13 frastructure in geographic locations throughout the 

14 United States. The Secretary may make additional solici15 tations for proposals if the Secretary determines that such 

16 solicitations are necessary to carry out this section. 

17 (2)(A) Proposals submitted in response to a solicita18 tion under this section shall include—

19 (i) a description of the project, including the 

20 batteries to be used in the project, the proposed lo21 cations and applications for the batteries, the num22 ber of batteries to be demonstrated, and the type, 

23 characteristics, and estimated life-cycle costs of the 

24 batteries compared to other energy storage devices 

25 currently used; 
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1 (ii) the contribution, if any, of State or local 

2 governments and other persons to the demonstration 

3 project; 

4 (iii) the type of associated equipment and sup5 porting infrastructure to be demonstrated; and 

6 (iv) any other information the Secretary con7 siders appropriate. 

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

9 proposal shall indicate the terms of such lease arrange10 ment for the batteries and associated equipment. 

11 (c) SELECTION OF PROPOSALS.—(1)(A) The Sec12 retary, in cooperation with affected Federal Regulatory 

13 agencies, shall, not later than 3 months after the closing 

14 date established by the Secretary for receipt of proposals 

15 under subsection (b), select at least 5 proposals to receive 

16 financial assistance under this section. 

17 (B) No one project selected under this section shall 

18 receive more than 25 percent of the funds authorized 

19 under this section. No more than 3 projects selected under 

20 this section shall demonstrate the same battery type. 

21 (2) In selecting a proposal under this section, the 

22 Secretary shall consider—

23 (A) the ability of the proposer to acquire the 

24 batteries and associated equipment and to success25 fully manage and conduct the demonstration project,
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1 including satisfying the reporting requirements set 

2 forth in paragraph (3)(B); 

3 (B) the geographic and climatic diversity of the 

4 projects selected; 

5 (C) the long-term technical and competitive via6 bility of the batteries to be used in the project and 

7 of the original manufacturer of such batteries; 

8 (D) the suitability of the batteries for their in9 tended uses; 

10 (E) the technical performance of the batteries, 

11 including the expected additional useful life and the 

12 batteries’ ability to retain energy; 

13 (F) the environmental effects of the use of and 

14 disposal of the batteries proposed to be used in the 

15 project selected; 

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

17 government and other persons in the demonstration 

18 project and whether such involvement will—

19 (i) permit a reduction of the Federal cost 

20 share per project; or 

21 (ii) otherwise be used to allow the Federal 

22 contribution to be provided to demonstrate a 

23 greater number of batteries; and 

24 (H) such other criteria as the Secretary con25 siders appropriate. 
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1 (3) CONDITIONS.—The Secretary shall require that—

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

3 users of the batteries provide to the proposer infor4 mation regarding the operation, maintenance, per5 formance, and use of the batteries, and the proposer 

6 provide such information to the battery manufac7 turer, for 3 years after the beginning of the dem8 onstration project; 

9 (B) the proposer provide to the Secretary and 

10 the Administrator of the United States Environ11 mental Protection Agency such information regard12 ing the operation, maintenance, performance, and 

13 use of the batteries as the Secretary or the Adminis14 trator may request; 

15 (C) the proposer provide to the Secretary such 

16 information regarding the disposal of the batteries 

17 as the Secretary may require to ensure that the pro18 poser disposes of the batteries in accordance with 

19 applicable law; and 

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

21 the costs associated with the proposal. 
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1 Subtitle B—Distributed Energy and 

2 Electric Energy Systems 

3 PART 1—AUTHORIZATION OF APPROPRIATIONS 

4 SEC. 6201. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 

5 SYSTEMS. 

6 The following sums are authorized to be appropriated 

7 to the Secretary for distributed energy and electric energy 

8 systems activities, including activities authorized under 

9 this subtitle: 

10 (1) For fiscal year 2004, $190,000,000. 

11 (2) For fiscal year 2005, $200,000,000. 

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

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

14 PART 2—DISTRIBUTED POWER

15 SEC. 6221. STRATEGY. 

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

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

18 and transmit to the Congress a strategy for a comprehen19 sive program to develop hybrid distributed power systems 

20 that combine—

21 (1) one or more renewable electric power gen22 eration technologies of 10 megawatts or less located 

23 near the site of electric energy use; and 
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1 (2) nonintermittent electric power generation 

2 technologies suitable for use in a distributed power 

3 system. 

4 (b) CONTENTS.—The strategy shall—

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

6 distributed power systems and the technological bar7 riers to the use of such systems; 

8 (2) provide for the development of methods to 

9 design, test, integrate into systems, and operate 

10 such hybrid distributed power systems; 

11 (3) include, as appropriate, activities needed for 

12 the adoption of such hybrid distributed power sys13 tems, including energy storage devices and environ14 mental control technologies; and 

15 (4) describe how activities under the strategy 

16 will be integrated with other activities supported by 

17 the Department of Energy related to electric power 

18 technologies. 

19 SEC. 6222. HIGH POWER DENSITY INDUSTRY PROGRAM. 

20 The Secretary shall establish a comprehensive pro21 gram to improve energy efficiency of high power density 

22 facilities, including data centers, server farms, and tele23 communications facilities. Such program shall consider 

24 technologies that provide significant improvement in ther-
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1 mal controls, metering, load management, peak load re2 duction, or the efficient cooling of electronics. 

3 SEC. 6223. MICRO-COGENERATION ENERGY TECHNOLOGY. 

4 The Secretary shall make competitive, merit-based 

5 grants to consortia for the development of micro-cogenera6 tion energy technology. The consortia shall explore the use 

7 of small-scale combined heat and power in residential 

8 heating appliances. 

9 PART 3—TRANSMISSION SYSTEMS

10 SEC. 6231. TRANSMISSION INFRASTRUCTURE SYSTEMS. 

11 (a) PROGRAM AUTHORIZED.—The Secretary shall de12 velop a program to promote improved reliability and effi13 ciency of electrical transmission systems. Such program 

14 may include—

15 (1) advanced energy technologies, materials, 

16 and systems; 

17 (2) advanced grid reliability and efficiency tech18 nology development; 

19 (3) technologies contributing to significant load 

20 reductions; 

21 (4) advanced metering, load management, and 

22 control technologies; 

23 (5) technologies to enhance existing grid compo24 nents;
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1 (6) the development and use of high-tempera2 ture superconductors to—

3 (A) enhance the reliability, operational 

4 flexibility, or power-carrying capability of elec5 tric transmission or distribution systems; or 

6 (B) increase the efficiency of electric en7 ergy generation, transmission, distribution, or 

8 storage systems; 

9 (7) integration of power systems, including sys10 tems to deliver high-quality electric power, electric 

11 power reliability, and combined heat and power; 

12 (8) any other infrastructure technologies, as ap13 propriate; and 

14 (9) technology transfer and education. 

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

16 date of the enactment of this Act, the Secretary, in con17 sultation with other appropriate Federal agencies, shall 

18 prepare and transmit to Congress a 5-year program plan 

19 to guide activities under this section. In preparing the pro20 gram plan, the Secretary shall consult with utilities, en21 ergy services providers, manufacturers, institutions of 

22 higher education, other appropriate State and local agen23 cies, environmental organizations, professional and tech24 nical societies, and any other persons the Secretary con25 siders appropriate. 
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1 (c) REPORT.—Not later than 2 years after the trans2 mittal of the plan under subsection (b), the Secretary shall 

3 transmit a report to Congress describing the progress 

4 made under this section and identifying any additional re5 sources needed to continue the development and commer6 cial application of transmission infrastructure tech7 nologies. 

8 Subtitle C—Renewable Energy 

9 PART 1—AUTHORIZATION OF APPROPRIATIONS 

10 SEC. 6301. RENEWABLE ENERGY. 

11 (a) IN GENERAL.—The following sums are author12 ized to be appropriated to the Secretary for renewable en13 ergy activities, including activities authorized under this 

14 subtitle: 

15 (1) For fiscal year 2004, $460,000,000. 

16 (2) For fiscal year 2005, $510,000,000. 

17 (3) For fiscal year 2006, $560,000,000. 

18 (4) For fiscal year 2007, $609,000,000. 

19 (b) BIOENERGY.—From the amounts authorized 

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

21 to be appropriated to carry out section 6321 and other 

22 bioenergy activities: 

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

24 (2) For fiscal year 2005, $155,600,000. 

25 (3) For fiscal year 2006, $167,650,000. 
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1 (4) For fiscal year 2007, $180,000,000. 

2 (c) USE OF FUNDS.—

3 (1) BIOENERGY.—Of the funds authorized 

4 under subsection (b), not less than $5,000,000 for 

5 each fiscal year shall be made available for grants to 

6 Historically Black Colleges and Universities, Tribal 

7 Colleges, and Hispanic-Serving Institutions. 

8 (2) RURAL AND REMOTE LOCATIONS.—In car9 rying out this section, the Secretary, in consultation 

10 with the Secretary of Agriculture, shall demonstrate 

11 the production and use of energy from advanced 

12 wind power technology, biomass, geothermal energy 

13 systems, and other renewable energy technologies in 

14 order to assist in delivering electricity to rural and 

15 remote locations.

16 (3) HYDROPOWER.—Of the funds authorized 

17 under subsection (a), not less than $5,000,000 for 

18 each fiscal year shall be made available for dem19 onstration projects of off-stream pumped storage hy20 dropower. 

21 PART 2—BIOENERGY 

22 SEC. 6321. BIOENERGY PROGRAMS. 

23 (a) PROGRAM.—The Secretary shall conduct a pro24 gram to facilitate the production of bioenergy, including—

25 (1) biopower energy systems; 
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1 (2) biofuels; 

2 (3) integrated applications of both biopower and 

3 biofuels; 

4 (4) feedstocks; and 

5 (5) economic analysis. 

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

7 term ‘‘bioenergy’’ includes energy produced from animal 

8 waste and agricultural crops. 

9 Subtitle D—Nuclear Energy 

10 PART 1—AUTHORIZATION OF APPROPRIATIONS 

11 SEC. 6411. NUCLEAR ENERGY. 

12 (a) CORE PROGRAMS.—The following sums are au13 thorized to be appropriated to the Secretary for nuclear 

14 energy activities, regulation of research and development 

15 activities and nuclear regulatory research, including activi16 ties authorized under this subtitle, other than those de17 scribed in subsection (b): 

18 (1) For fiscal year 2004, $200,000,000. 

19 (2) For fiscal year 2005, $233,000,000. 

20 (3) For fiscal year 2006, $266,000,000. 

21 (4) For fiscal year 2007, $300,000,000. 

22 (b) NUCLEAR INFRASTRUCTURE SUPPORT.—The fol23 lowing sums are authorized to be appropriated to the Sec24 retary for activities under section 6421(f): 

25 (1) For fiscal year 2004, $120,000,000. 
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1 (2) For fiscal year 2005, $125,000,000. 

2 (3) For fiscal year 2006, $130,000,000. 

3 (4) For fiscal year 2007, $135,000,000. 

4 (c) ALLOCATIONS.—From amounts authorized under 

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

6 (1) ADVANCED FUEL RECYCLING PROGRAM.—

7 For activities under section 6431—

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

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

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

11 and 

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

13 (2) UNIVERSITY PROGRAMS.—For activities 

14 under section 6441—

15 (A) for fiscal year 2004, $25,000,000; 

16 (B) for fiscal year 2005, $33,900,000; 

17 (C) for fiscal year 2006, $37,900,000; and 

18 (D) for fiscal year 2007, $43,600,000. 

19 (d) LIMIT ON USE OF FUNDS.—None of the funds 

20 authorized under this section may be used for decommis21 sioning the Fast Flux Test Facility.
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1 PART 2—NUCLEAR ENERGY RESEARCH 

2 PROGRAMS

3 SEC. 6421. NUCLEAR ENERGY RESEARCH PROGRAMS. 

4 (a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 

5 Secretary shall carry out a Nuclear Energy Research Ini6 tiative for research and development related to nuclear en7 ergy. 

8 (b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO9 GRAM.—The Secretary shall carry out a Nuclear Energy 

10 Plant Optimization Program to support research and de11 velopment activities addressing reliability, availability, pro12 ductivity, and component aging in existing nuclear power 

13 plants. 

14 (c) NUCLEAR POWER 2010 PROGRAM.—The Sec15 retary shall carry out a Nuclear Power 2010 Program, 

16 consistent with recommendations in the October 2001 re17 port entitled ‘‘A Roadmap to Deploy New Nuclear Power 

18 Plants in the United States by 2010’’ issued by the Nu19 clear Energy Research Advisory Committee of the Depart20 ment. The Program shall—

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

22 National Laboratories in the areas of advanced nu23 clear fuels cycles and fuels testing; 

24 (2) pursue an approach that considers a variety 

25 of reactor designs; 
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1 (3) include participation of international col2 laborators in research, development, and design ef3 forts as appropriate; and 

4 (4) encourage industry participation. 

5 (d) GENERATION IV NUCLEAR ENERGY SYSTEMS

6 INITIATIVE.—The Secretary shall carry out a Generation 

7 IV Nuclear Energy Systems Initiative to develop an over8 all technology plan and to support research and develop9 ment necessary to make an informed technical decision 

10 about the most promising candidates for eventual commer11 cial application. The Initiative shall examine advanced 

12 proliferation-resistant and passively safe reactor designs, 

13 including designs that—

14 (1) are economically competitive with other elec15 tric power generation plants; 

16 (2) have higher efficiency, lower cost, and im17 proved safety compared to reactors in operation on 

18 the date of enactment of this Act; 

19 (3) use fuels that are proliferation resistant and 

20 have substantially reduced production of high-level 

21 waste per unit of output; and 

22 (4) utilize improved instrumentation. 

23 (e) REACTOR PRODUCTION OF HYDROGEN.—The 

24 Secretary shall carry out research to examine designs for 
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1 high-temperature reactors capable of producing large-scale 

2 quantities of hydrogen using thermochemical processes. 

3 (f) NUCLEAR INFRASTRUCTURE SUPPORT.—The 

4 Secretary shall develop and implement a strategy for the 

5 facilities of the Office of Nuclear Energy, Science, and 

6 Technology and shall transmit a report containing the 

7 strategy along with the President’s budget request to the 

8 Congress for fiscal year 2005. Such strategy shall provide 

9 a cost-effective means for—

10 (1) maintaining existing facilities and infra11 structure, as needed; 

12 (2) closing unneeded facilities; 

13 (3) making facility upgrades and modifications; 

14 and 

15 (4) building new facilities. 

16 PART 3—ADVANCED FUEL RECYCLING 

17 SEC. 6431. ADVANCED FUEL RECYCLING PROGRAM. 

18 (a) IN GENERAL.—The Secretary, through the Direc19 tor of the Office of Nuclear Energy, Science and Tech20 nology, shall conduct an advanced fuel recycling tech21 nology research and development program to evaluate pro22 liferation-resistant fuel recycling and transmutation tech23 nologies which minimize environmental or public health 

24 and safety impacts as an alternative to aqueous reprocess25 ing technologies deployed as of the date of enactment of 
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1 this Act in support of evaluation of alternative national 

2 strategies for spent nuclear fuel and the Generation IV 

3 advanced reactor concepts, subject to annual review by the 

4 Secretary’s Nuclear Energy Research Advisory Committee 

5 or other independent entity, as appropriate. Opportunities 

6 to enhance progress of this program through international 

7 cooperation should be sought. 

8 (b) REPORTS.—The Secretary shall report on the ac9 tivities of the advanced fuel recycling technology research 

10 and development program, as part of the Department’s 

11 annual budget submission. 

12 PART 4—UNIVERSITY PROGRAMS 

13 SEC. 6441. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER14 ING SUPPORT. 

15 (a) ESTABLISHMENT.—The Secretary shall support 

16 a program to invest in human resources and infrastructure 

17 in the nuclear sciences and engineering and related fields 

18 (including health physics and nuclear and radiochemistry), 

19 consistent with departmental missions related to civilian 

20 nuclear research and development. 

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

22 section, the Secretary shall—

23 (1) establish a graduate and undergraduate fel24 lowship program to attract new and talented stu25 dents; 
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1 (2) establish a Junior Faculty Research Initi2 ation Grant Program to assist institutions of higher 

3 education in recruiting and retaining new faculty in 

4 the nuclear sciences and engineering; 

5 (3) support fundamental nuclear sciences and 

6 engineering research through the Nuclear Engineer7 ing Education Research Program; 

8 (4) encourage collaborative nuclear research 

9 among industry, National Laboratories, and institu10 tions of higher education through the Nuclear En11 ergy Research Initiative; and 

12 (5) support communication and outreach re13 lated to nuclear science and engineering. 

14 (c) MAINTAINING UNIVERSITY RESEARCH AND

15 TRAINING REACTORS AND ASSOCIATED INFRASTRUC16 TURE.—Activities under this section may include—

17 (1) converting research reactors currently using 

18 high-enrichment fuels to low-enrichment fuels, up19 grading operational instrumentation, and sharing of 

20 reactors among institutions of higher education; 

21 (2) providing technical assistance, in collabora22 tion with the United States nuclear industry, in reli23 censing and upgrading training reactors as part of 

24 a student training program; and
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1 (3) providing funding for reactor improvements 

2 as part of a focused effort that emphasizes research, 

3 training, and education. 

4 (d) UNIVERSITY-NATIONAL LABORATORY INTER5 ACTIONS.—The Secretary shall develop—

6 (1) a sabbatical fellowship program for profes7 sors at institutions of higher education to spend ex8 tended periods of time at National Laboratories in 

9 the areas of nuclear science and technology; and 

10 (2) a visiting scientist program in which Na11 tional Laboratory staff can spend time in academic 

12 nuclear science and engineering departments. 

13 The Secretary may provide fellowships for students to 

14 spend time at National Laboratories in the area of nuclear 

15 science with a member of the Laboratory staff acting as 

16 a mentor. 

17 (e) OPERATING AND MAINTENANCE COSTS.—Fund18 ing for a research project provided under this section may 

19 be used to offset a portion of the operating and mainte20 nance costs of a research reactor at an institution of high21 er education used in the research project. 
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1 Subtitle E—Fossil Energy 

2 PART 1—AUTHORIZATION OF APPROPRIATIONS 

3 SEC. 6501. FOSSIL ENERGY. 

4 There are authorized to be appropriated to the Sec5 retary for fossil energy activities, including activities au6 thorized under this subtitle—

7 (1) $523,000,000 for fiscal year 2004; 

8 (2) $542,000,000 for fiscal year 2005; 

9 (3) $558,000,000 for fiscal year 2006; and 

10 (4) $585,000,000 for fiscal year 2007.

11 PART 2—ULTRA-DEEPWATER AND UNCONVEN12 TIONAL NATURAL GAS AND OTHER PETRO13 LEUM RESOURCES 

14 SEC. 6521. PROGRAM AUTHORITY. 

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

16 program under this part for ultra-deepwater and uncon17 ventional natural gas and other petroleum resource explo18 ration and production, including safe operations and envi19 ronmental mitigation. 

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

21 part shall address the following areas, including improving 

22 safety and minimizing environmental impacts of activities 

23 within each area: 

24 (1) Ultra-deepwater technology. 

25 (2) Ultra-deepwater architecture. 
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1 (3) Unconventional natural gas and other petro2 leum resource exploration and production tech3 nology. 

4 (c) LIMITATION ON LOCATION OF FIELD ACTIVI5 TIES.—Field activities under the program under this part 

6 shall be carried out only—

7 (1) in—

8 (A) areas in the territorial waters of the 

9 United States not under any Outer Continental 

10 Shelf moratorium as of September 30, 2002; 

11 (B) areas onshore in the United States on 

12 public land administered by the Secretary of the 

13 Interior available for oil and gas leasing, where 

14 consistent with applicable law and land use 

15 plans; and 

16 (C) areas onshore in the United States on 

17 State or private land, subject to applicable law; 

18 and 

19 (2) with the approval of the appropriate Fed20 eral or State land management agency or private 

21 land owner. 

22 (d) NATIONAL ENERGY TECHNOLOGY LABORA23 TORY.—The Secretary, through the National Energy 

24 Technology Laboratory, shall carry out activities com25 plementary to activities under subsection (b)(1). 
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1 (e) CONSULTATION WITH SECRETARY OF THE INTE2 RIOR.—In carrying out this part, the Secretary shall con3 sult regularly with the Secretary of the Interior. 

4 SEC. 6522. ULTRA-DEEPWATER PROGRAM. 

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

6 activities under paragraphs (1) and (2) of section 6521(b), 

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

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

10 cost and increasing the efficiency of exploration for and 

11 production of such resources, while improving safety and 

12 minimizing environmental impacts. 

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

14 have ultimate responsibility for, and oversight of, all as15 pects 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 Sec22 retary for project solicitations; 

23 (C) disburse funds awarded under sub24 section (f) as directed by the Secretary in ac-
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1 cordance with the annual plan under subsection 

2 (e); and 

3 (D) carry out other activities assigned to 

4 the program consortium by this section. 

5 (2) LIMITATION.—The Secretary may not as6 sign any activities to the program consortium except 

7 as specifically authorized under this section. 

8 (3) CONFLICT OF INTEREST.—(A) The Sec9 retary shall establish procedures—

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

12 who is in a decisionmaking capacity under sub13 section (f)(3) or (4) shall disclose to the Sec14 retary any financial interests in, or financial re15 lationships with, applicants for or recipients of 

16 awards under this section, including those of 

17 his or her spouse or minor child, unless such re18 lationships or interests would be considered to 

19 be remote or inconsequential; and 

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

21 or employee with a financial relationship or in22 terest disclosed under clause (i) to recuse him23 self or herself from any review under subsection 

24 (f)(3) or oversight under subsection (f)(4) with 

25 respect 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 

5 (A)(ii). 

6 (d) SELECTION OF THE PROGRAM CONSORTIUM.—

7 (1) IN GENERAL.—The Secretary shall select 

8 the program consortium through an open, competi9 tive process. 

10 (2) MEMBERS.—The program consortium may 

11 include corporations, institutions of higher edu12 cation, National Laboratories, or other research in13 stitutions. After submitting a proposal under para14 graph (4), the program consortium may not add 

15 members without the consent of the Secretary. 

16 (3) TAX STATUS.—The program consortium 

17 shall be an entity that is exempt from tax under sec18 tion 501(c)(3) of the Internal Revenue Code of 

19 1986. 

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

21 the date of enactment of this Act, the Secretary 

22 shall solicit proposals for the creation of the pro23 gram consortium, which must be submitted not less 

24 than 180 days after the date of enactment of this 

25 Act. The Secretary shall select the program consor-
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1 tium not later than 240 days after such date of en2 actment. 

3 (5) APPLICATION.—Applicants shall submit a 

4 proposal including such information as the Secretary 

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

6 (A) list all members of the consortium; 

7 (B) fully describe the structure of the con8 sortium, including any provisions relating to in9 tellectual property; and 

10 (C) describe how the applicant would carry 

11 out the activities of the program consortium 

12 under this section. 

13 (6) ELIGIBILITY.—To be eligible to be selected 

14 as the program consortium, an applicant must be an 

15 entity whose members collectively have demonstrated 

16 capabilities in planning and managing programs in 

17 natural gas or other petroleum exploration or pro18 duction. 

19 (7) CRITERION.—The Secretary may consider 

20 the amount of the fee an applicant proposes to re21 ceive under subsection (g) in selecting a consortium 

22 under this section. 

23 (e) ANNUAL PLAN.—

24 (1) IN GENERAL.—The program under this sec25 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 

4 annual plan under this subsection, the Secretary 

5 shall solicit specific written recommendations from 

6 the program consortium for each element to be ad7 dressed in the plan, including those described in 

8 paragraph (4). The Secretary may request that the 

9 program consortium submit its recommendations in 

10 the form of a draft annual plan. 

11 (B) The Secretary shall submit the rec12 ommendations of the program consortium under 

13 subparagraph (A) to the Ultra-Deepwater Advisory 

14 Committee established under section 6525(a) for re15 view, and such Advisory Committee shall provide to 

16 the Secretary written comments by a date deter17 mined by the Secretary. The Secretary may also so18 licit comments from 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 trans23 mit to the Congress and publish in the Federal Reg24 ister the annual plan, along with any written com25 ments received under paragraph (2)(A) and (B). 
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1 The annual plan shall be transmitted and published 

2 not later than 60 days after the date of enactment 

3 of an Act making appropriations for a fiscal year for 

4 the program under this section. 

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

6 the ongoing and prospective activities of the pro7 gram 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 

10 activities, including the topics for such work, 

11 who would be eligible to apply, selection cri12 teria, and the duration of awards; and 

13 (B) a description of the activities expected 

14 of the program consortium to carry out sub15 section (f)(4). 

16 (f) AWARDS.—

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

18 awards to carry out activities under the program 

19 under this section. The program consortium shall 

20 not be eligible to receive such awards, but members 

21 of the program consortium may receive such awards. 

22 (2) PROPOSALS.—The Secretary shall solicit 

23 proposals for awards under this subsection in such 

24 manner and at such time as the Secretary may pre25 scribe, in consultation with the program consortium. 
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1 (3) REVIEW.—The Secretary shall make awards 

2 under this subsection through a competitive process, 

3 which shall include a review by individuals selected 

4 by the Secretary. Such individuals shall include, for 

5 each application, Federal officials, the program con6 sortium, and non-Federal experts who are not board 

7 members, officers, or employees of the program con8 sortium or of a member of the program consortium. 

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

10 shall oversee the implementation of awards under 

11 this subsection, consistent with the annual plan 

12 under subsection (e), including disbursing funds and 

13 monitoring activities carried out under such awards 

14 for compliance with the terms and conditions of the 

15 awards. 

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

17 authority or responsibility of the Secretary to over18 see awards, or limit the authority of the Secretary 

19 to review or revoke awards. 

20 (C) The Secretary shall provide to the program 

21 consortium the information necessary for the pro22 gram consortium to carry out its responsibilities 

23 under this paragraph. 

24 (g) FEE.—
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1 (1) IN GENERAL.—To compensate the program 

2 consortium for carrying out its activities under this 

3 section, the Secretary shall provide to the program 

4 consortium a fee in an amount not to exceed 7.5 

5 percent of the amounts awarded under subsection (f) 

6 for each fiscal year. 

7 (2) ADVANCE.—The Secretary shall advance 

8 funds to the program consortium upon selection of 

9 the consortium, which shall be deducted from 

10 amounts to be provided under paragraph (1). 

11 (h) AUDIT.—The Secretary shall retain an inde12 pendent, commercial auditor to determine the extent to 

13 which funds provided to the program consortium, and 

14 funds provided under awards made under subsection (f), 

15 have been expended in a manner consistent with the pur16 poses and requirements of this part. The auditor shall 

17 transmit a report annually to the Secretary, who shall 

18 transmit the report to Congress, along with a plan to rem19 edy any deficiencies cited in the report. 

20 SEC. 6523. UNCONVENTIONAL NATURAL GAS AND OTHER 

21 PETROLEUM RESOURCES PROGRAM. 

22 (a) IN GENERAL.—The Secretary, after consulting 

23 with appropriate Federal regulatory agencies, shall carry 

24 out activities under section 6521(b)(3), to maximize the 

25 value of the onshore unconventional natural gas and other 
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1 petroleum resources of the United States by increasing the 

2 supply of such resources and by reducing the cost and in3 creasing the efficiency of exploration for and production 

4 of such resources, while improving safety and minimizing 

5 environmental impacts. 

6 (b) AWARDS.—

7 (1) IN GENERAL.—The Secretary shall carry 

8 out this section through awards made through an 

9 open, competitive process. 

10 (2) CONSORTIA.—In carrying out paragraph 

11 (1), the Secretary shall give preference to making 

12 awards to consortia. 

13 (c) AUDIT.—The Secretary shall retain an inde14 pendent, commercial auditor to determine the extent to 

15 which funds provided under awards made under this sec16 tion have been expended in a manner consistent with the 

17 purposes and requirements of this part. The auditor shall 

18 transmit a report annually to the Secretary, who shall 

19 transmit the report to Congress, along with a plan to rem20 edy any deficiencies cited in the report. 

21 (d) FOCUS AREAS.—Awards under this section may 

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

23 drilling, natural gas production from tight sands, natural 

24 gas production from gas shales, innovative exploration and 

25 production techniques, enhanced recovery techniques, and 
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1 environmental mitigation of unconventional natural gas 

2 and other petroleum resources exploration and production. 

3 (e) ACTIVITIES BY THE UNITED STATES GEOLOGI4 CAL SURVEY.—The Secretary of the Interior, through the 

5 United States Geological Survey, shall, where appropriate, 

6 carry out programs to complement the programs under 

7 this section. 

8 SEC. 6524. ADDITIONAL REQUIREMENTS FOR AWARDS. 

9 (a) DEMONSTRATION PROJECTS.—An application for 

10 an award under this part for a demonstration project shall 

11 describe with specificity the intended commercial use of 

12 the technology to be demonstrated. 

13 (b) FLEXIBILITY IN LOCATING DEMONSTRATION

14 PROJECTS.—Subject to the limitation in section 6521(c), 

15 a demonstration project under this part relating to an 

16 ultra-deepwater technology or an ultra-deepwater architec17 ture may be conducted in deepwater depths. 

18 (c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 

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

20 the program consortium), the consortium shall provide to 

21 the Secretary a signed contract agreed to by all members 

22 of the consortium describing the rights of each member 

23 to intellectual property used or developed under the award. 
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1 (d) TECHNOLOGY TRANSFER.—Each recipient of an 

2 award under this part shall conduct technology transfer 

3 activities, as appropriate. 

4 SEC. 6525. ADVISORY COMMITTEES. 

5 (a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—

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

7 after the date of enactment of this section, the Sec8 retary shall establish an advisory committee to be 

9 known as the Ultra-Deepwater Advisory Committee.

10 (2) MEMBERSHIP.—The advisory committee 

11 under this subsection shall be composed of members 

12 appointed by the Secretary and including—

13 (A) individuals with extensive experience or 

14 operational knowledge of offshore natural gas 

15 and other petroleum exploration and produc16 tion; 

17 (B) individuals broadly representative of 

18 the affected interests in ultra-deepwater natural 

19 gas and other petroleum production, including 

20 interests in environmental protection and safe 

21 operations; 

22 (C) no individuals who are Federal employ23 ees; and 
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1 (D) no individuals who are board members, 

2 officers, or employees of the program consor3 tium. 

4 (3) DUTIES.—The advisory committee under 

5 this subsection shall—

6 (A) advise the Secretary on the develop7 ment and implementation of programs under 

8 this part related to ultra-deepwater natural gas 

9 and other petroleum resources; and 

10 (B) carry out section 6522(e)(2)(B). 

11 (4) COMPENSATION.—A member of the advi12 sory committee under this subsection shall serve 

13 without compensation but shall receive travel ex14 penses, including per diem in lieu of subsistence, in 

15 accordance with applicable provisions under sub16 chapter I of chapter 57 of title 5, United States 

17 Code. 

18 (b) UNCONVENTIONAL RESOURCES TECHNOLOGY

19 ADVISORY COMMITTEE.—

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

21 after the date of enactment of this section, the Sec22 retary shall establish an advisory committee to be 

23 known as the Unconventional Resources Technology 

24 Advisory Committee. 
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1 (2) MEMBERSHIP.—The advisory committee 

2 under this subsection shall be composed of members 

3 appointed by the Secretary and including—

4 (A) individuals with extensive experience or 

5 operational knowledge of unconventional nat6 ural gas and other petroleum resource explo7 ration and production, including independent oil 

8 and gas producers; 

9 (B) individuals broadly representative of 

10 the affected interests in unconventional natural 

11 gas and other petroleum resource exploration 

12 and production, including interests in environ13 mental protection and safe operations; and 

14 (C) no individuals who are Federal employ15 ees. 

16 (3) DUTIES.—The advisory committee under 

17 this subsection shall advise the Secretary on the de18 velopment and implementation of activities under 

19 this part related to unconventional natural gas and 

20 other petroleum resources. 

21 (4) COMPENSATION.—A member of the advi22 sory committee under this subsection shall serve 

23 without compensation but shall receive travel ex24 penses, including per diem in lieu of subsistence, in 

25 accordance with applicable provisions under sub-
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1 chapter I of chapter 57 of title 5, United States 

2 Code. 

3 (c) PROHIBITION.—No advisory committee estab4 lished under this section shall make recommendations on 

5 funding awards to consortia or for specific projects. 

6 SEC. 6526. LIMITS ON PARTICIPATION. 

7 (a) IN GENERAL.—An entity shall be eligible to re8 ceive an award under this part only if the Secretary 

9 finds—

10 (1) that the entity’s participation in the pro11 gram under this part would be in the economic in12 terest of the United States; and 

13 (2) that either—

14 (A) the entity is a United States-owned en15 tity organized under the laws of the United 

16 States; or 

17 (B) the entity is organized under the laws 

18 of the United States and has a parent entity or19 ganized under the laws of a country which af20 fords—

21 (i) to United States-owned entities op22 portunities, comparable to those afforded 

23 to any other entity, to participate in any 

24 cooperative venture similar to those au25 thorized under this part; 
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1 (ii) to United States-owned entities 

2 local investment opportunities comparable 

3 to those afforded to any other entity; and 

4 (iii) adequate and effective protection 

5 for the intellectual property rights of 

6 United States-owned entities. 

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

8 Sense of the Congress that ultra-deepwater technology de9 veloped under this part is to be developed primarily for 

10 production of ultra-deepwater natural gas and other petro11 leum resources of the United States, and that this priority 

12 is to be reflected in the terms of grants, contracts, and 

13 cooperative agreements entered under this part. As part 

14 of the annual Departmental budget submission, the Sec15 retary shall report on all steps taken to implement the pol16 icy described in this subsection. 

17 SEC. 6527. FUND. 

18 There is hereby established in the Treasury of the 

19 United States a separate fund to be known as the ‘‘Ultra20 Deepwater and Unconventional Natural Gas and Other 

21 Petroleum Products Fund’’. 

22 SEC. 6528. SUNSET. 

23 The authority provided by this part shall terminate 

24 on September 30, 2010. 
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1 SEC. 6529. DEFINITIONS. 

2 In this part: 

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

4 means a water depth that is greater than 200 but 

5 less than 1,500 meters. 

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

8 under section 6522(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 ‘‘ultra15 deepwater’’ means a water depth that is equal to or 

16 greater 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 

20 production of, natural gas or other petroleum re21 sources located at ultra-deepwater depths. 

22 (6) ULTRA-DEEPWATER TECHNOLOGY.—The 

23 term ‘‘ultra-deepwater technology’’ means a discrete 

24 technology that is specially suited to address one or 

25 more challenges associated with the exploration for, 
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1 or production of, natural gas or other petroleum re2 sources located at ultra-deepwater depths. 

3 (7) UNCONVENTIONAL NATURAL GAS AND

4 OTHER PETROLEUM RESOURCE.—The term ‘‘uncon5 ventional natural gas and other petroleum resource’’ 

6 means natural gas and other petroleum resource lo7 cated onshore in an economically inaccessible geo8 logical formation. 

9 Subtitle F—Miscellaneous 

10 SEC. 6601. WASTE REDUCTION AND USE OF ALTERNATIVES. 

11 (a) GRANT AUTHORITY.—The Secretary is author12 ized to make a single grant to a qualified institution to 

13 examine and develop the feasibility of burning post-con14 sumer carpet in cement kilns as an alternative energy 

15 source. The purposes of the grant shall include deter16 mining—

17 (1) how post-consumer carpet can be burned 

18 without disrupting kiln operations; 

19 (2) the extent to which overall kiln emissions 

20 may be reduced; 

21 (3) the emissions of air pollutants and other 

22 relevant environmental impacts; and 

23 (4) how this process provides benefits to both 

24 cement kiln operations and carpet suppliers.
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1 (b) QUALIFIED INSTITUTION.—For the purposes of 

2 subsection (a), a qualified institution is a research-inten3 sive institution of higher education with demonstrated ex4 pertise in the fields of fiber recycling and logistical mod5 eling of carpet waste collection and preparation. 

6 (c) WASTE REDUCTION AND USE OF ALTER7 NATIVES.—There are authorized to be appropriated to the 

8 Secretary to carry out activities under this section 

9 $500,000 for fiscal year 2004. 

10 SEC. 6602. COAL GASIFICATION. 

11 The Secretary is authorized to provide loan guaran12 tees for a project to produce energy from a plant using 

13 integrated gasification combined cycle technology of at 

14 least 400 megawatts in capacity that produces power at 

15 competitive rates in deregulated energy generation mar16 kets and that does not receive any subsidy (direct or indi17 rect) from ratepayers. 

18 SEC. 6603. PETROLEUM COKE GASIFICATION. 

19 The Secretary is authorized to provide loan guaran20 tees for at least one petroleum coke gasification 

21 polygeneration project. 

22 SEC. 6604. OTHER BIOPOWER AND BIOENERGY. 

23 The Secretary shall conduct a program to assist in 

24 the planning, design, and implementation of projects to 
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1 convert rice straw, rice hulls, sugarcane bagasse, forest 

2 thinnings, and barley grain into biopower and biofuels. 

3 SEC. 6605. TECHNOLOGY TRANSFER. 

4 There are authorized to be appropriated to the Sec5 retary $1,000,000 for a competitively awarded contract, 

6 to an entity with offshore oil and gas management experi7 ence, for the transfer of technologies relating to ultra8 deepwater research and development developed at the 

9 Naval Surface Warfare Center, Carderock Division. 

10 SEC. 6606. LIMITATION ON LEGAL FEE REIMBURSEMENT. 

11 The Department of Energy shall not, except as re12 quired under a contract entered into before the date of 

13 enactment of this Act, reimburse any contractor or sub14 contractor of the Department for any legal fees or ex15 penses incurred with respect to a complaint subsequent 

16 to—

17 (1) an adverse determination on the merits with 

18 respect to such complaint against the contractor or 

19 subcontractor by the Director of the Department of 

20 Energy’s Office of Hearings and Appeals pursuant 

21 to section 708 of title 10, Code of Federal Regula22 tions, or by a Department of Labor Administrative 

23 Law Judge pursuant to section 211 of the Energy 

24 Reorganization Act of 1974 (42 U.S.C. 5851); or 
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1 (2) an adverse final judgment by any State or 

2 Federal court with respect to such complaint against 

3 the contractor or subcontractor for wrongful termi4 nation or retaliation due to the making of disclo5 sures protected under chapter 12 of title 5, United 

6 States Code, section 211 of the Energy Reorganiza7 tion Act of 1974 (42 U.S.C. 5851), or any com8 parable State law, 

9 unless the adverse determination or final judgment is re10 versed upon further administrative or judicial review.

11 SEC. 6607. COMPLEX WELL TECHNOLOGY TESTING FACIL12 ITY. 

13 The Secretary, in coordination with industry leaders 

14 in extended reach drilling technology, shall establish a 

15 Complex Well Technology Testing Facility at the Rocky 

16 Mountain Oilfield Testing Center to increase the range of 

17 extended drilling technology to 50,000 feet, so that more 

18 energy resources can be realized with fewer drilling facili19 ties. 

20 SEC. 6608. TOTAL INTEGRATED THERMAL SYSTEMS. 

21 The Secretary shall—

22 (1) conduct a study of the benefits of total inte23 grated thermal systems in reducing demand for oil 

24 and protecting the environment; and 
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1 (2) examine the feasibility of using total inte2 grated thermal systems in Department of Defense 

3 and other Federal motor vehicle fleets. 

4 SEC. 6609. OIL BYPASS FILTRATION TECHNOLOGY. 

5 The Secretary of Energy and the Administrator of 

6 the Environmental Protection Agency shall—

7 (1) conduct a joint study of the benefits of oil 

8 bypass filtration technology in reducing demand for 

9 oil and protecting the environment; and 

10 (2) examine the feasibility of using oil bypass 

11 filtration technology in Federal motor vehicle fleets.

12 TITLE VII—ELECTRICITY 

13 Subtitle A—Transmission Capacity 

14 SEC. 7011. TRANSMISSION INFRASTRUCTURE IMPROVE15 MENT RULEMAKING. 

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

17 seq.) is amended by adding the following new section at 

18 the end thereof: 

19 ‘‘SEC. 215. TRANSMISSION INFRASTRUCTURE IMPROVE20 MENT RULEMAKING. 

21 ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 year 

22 after the enactment of this section, the Commission shall 

23 establish, by rule, incentive-based (including but not lim24 ited to performance-based) transmission rate treatments 

25 to promote capital investment in the enlargement and im-
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1 provement of facilities for the transmission of electric en2 ergy in interstate commerce as appropriate to—

3 ‘‘(1) promote economically efficient trans4 mission and generation of electricity; 

5 ‘‘(2) provide a return on equity that attracts 

6 new investment in transmission facilities and reason7 ably reflects the risks taken by public utilities in re8 structuring control of transmission assets; and 

9 ‘‘(3) encourage deployment of transmission 

10 technologies and other measures to increase the ca11 pacity and efficiency of existing transmission facili12 ties and improve the operation of such facilities. 

13 The Commission may, from time to time, revise such rule. 

14 ‘‘(b) FUNDING OF CERTAIN FACILITIES.—The rule 

15 promulgated pursuant to this section shall provide that, 

16 upon the request of a regional transmission organization 

17 or other Commission-approved transmission organization, 

18 new transmission facilities that increase the transfer capa19 bility of the transmission system shall be participant fund20 ed. In such rules, the Commission shall also provide guid21 ance as to what types of facilities may be participant fund22 ed. 

23 ‘‘(c) JUST AND REASONABLE RATES.—With respect 

24 to any transmission rate filed with the Commission on or 

25 after the effective date of the rule promulgated under this
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1 section, the Commission shall, in its review of such rate 

2 under sections 205 and 206, apply the rules adopted pur3 suant to this section, including any revisions thereto. 

4 Nothing in this section shall be construed to override, 

5 weaken, or conflict with the procedural and other require6 ments of this part, including the requirement of sections 

7 205 and 206 that all rates, charges, terms, and conditions 

8 be just and reasonable and not unduly discriminatory or 

9 preferential.’’.

10 SEC. 7012. SITING OF INTERSTATE ELECTRICAL TRANS11 MISSION FACILITIES. 

12 (a) AMENDMENT OF FEDERAL POWER ACT.—Part 

13 II of the Federal Power Act is amended by adding at the 

14 end the following: 

15 ‘‘SEC. 216. SITING OF INTERSTATE ELECTRICAL TRANS16 MISSION FACILITIES 

17 ‘‘(a) TRANSMISSION STUDIES.—Within one year 

18 after the enactment of this section, and every 3 years 

19 thereafter, the Secretary of Energy shall conduct a study 

20 of electric transmission congestion. After considering al21 ternatives and recommendations from interested parties 

22 the Secretary shall issue a report, based on such study, 

23 which may designate one or more geographic areas experi24 encing electric energy transmission congestion as ‘inter25 state congestion areas’. 
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1 ‘‘(b) CONSTRUCTION PERMIT.—The Commission is 

2 authorized, after notice and an opportunity for hearing, 

3 to issue permits for the construction or modification of 

4 electric transmission facilities in interstate congestion 

5 areas designated by the Secretary under subsection (a) if 

6 the Commission makes each of the following findings: 

7 ‘‘(1) A finding that—

8 ‘‘(A) the State in which the transmission 

9 facilities are to be constructed or modified is 

10 without authority to approve the siting of the 

11 facilities, or 

12 ‘‘(B) a State commission or body in the 

13 State in which the transmission facilities are to 

14 be constructed or modified that has authority to 

15 approve the siting of the facilities has withheld 

16 approval, conditioned its approval in such a 

17 manner that the proposed construction or modi18 fication will not significantly reduce trans19 mission congestion in interstate commerce and 

20 is otherwise not economically feasible, or de21 layed final approval for more than one year 

22 after the filing of an application seeking ap23 proval or one year after the designation of the 

24 relevant interstate congestion area, whichever is 

25 later. 
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1 ‘‘(2) A finding that the facilities to be author2 ized by the permit will be used for the transmission 

3 of electric energy in interstate commerce. 

4 ‘‘(3) A finding that the proposed construction 

5 or modification is consistent with the public interest. 

6 ‘‘(4) A finding that the proposed construction 

7 or modification will significantly reduce transmission 

8 congestion in interstate commerce. 

9 The Commission may include in a permit issued under this 

10 section conditions consistent with the public interest. 

11 ‘‘(c) PERMIT APPLICATIONS.—Permit applications 

12 under subsection (b) shall be made in writing to the Com13 mission and verified under oath. The Commission shall 

14 issue rules setting forth the form of the application, the 

15 information it is to contain, and the manner of service of 

16 notice of the permit application upon interested persons. 

17 ‘‘(d) COMMENTS.—In any proceeding before the 

18 Commission under subsection (b), the Commission shall 

19 afford each State in which a transmission facility covered 

20 by the permit is or will be located, each affected Federal 

21 agency and Indian tribe, private property owners, and 

22 other interested persons, a reasonable opportunity to 

23 present their views and recommendations with respect to 

24 the need for and impact of a facility covered by the permit. 
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1 ‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 

2 subsection (b) for electric transmission facilities to be lo3 cated on property other than property owned by the 

4 United States or a State, if the permit holder cannot ac5 quire by contract, or is unable to agree with the owner 

6 of the property to the compensation to be paid for, the 

7 necessary right-of-way to construct or modify such trans8 mission facilities, the permit holder may acquire the right9 of-way by the exercise of the right of eminent domain in 

10 the district court of the United States for the district in 

11 which the property concerned is located, or in the appro12 priate court of the State in which the property is located. 

13 The practice and procedure in any action or proceeding 

14 for that purpose in the district court of the United States 

15 shall conform as nearly as may be with the practice and 

16 procedure in similar action or proceeding in the courts of 

17 the State where the property is situated. 

18 ‘‘(f) STATE LAW.—Nothing in this section shall pre19 clude any person from constructing any transmission fa20 cilities pursuant to State law. 

21 ‘‘(g) COMPLIANCE WITH OTHER LAWS.—Commis22 sion action under this section shall be subject to the Na23 tional Environmental Policy Act of 1969 (42 U.S.C. 4321 

24 et seq.) and all other applicable Federal laws. 
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1 ‘‘(h) COMPENSATION.—Any exercise of eminent do2 main authority pursuant to this section shall be considered 

3 a taking of private property for which just compensation 

4 is due. Just compensation shall be an amount equal to 

5 the full fair market value of the property taken on the 

6 date of the exercise of eminent domain authority, except 

7 that the compensation shall exceed fair market value if 

8 necessary to make the landowner whole for decreases in 

9 the value of any portion of the land not subject to eminent 

10 domain. Any parcel of land acquired by eminent domain 

11 under this subsection shall be transferred back to the 

12 owner from whom it was acquired (or his heirs or assigns) 

13 if the land is not used for power line construction or modi14 fication within a reasonable period of time after the acqui15 sition. Property acquired under this subsection may not 

16 be used for any heritage area, recreational trail, or park, 

17 or for any other purpose (other than power line construc18 tion or modification, and for power line operation and 

19 maintenance) without the consent of the owner of the par20 cel from whom the property was acquired (or his heirs or 

21 assigns). 

22 ‘‘(i) ERCOT.—Nothing in this section shall be con23 strued to authorize any interconnection with any facility 

24 owned or operated by an entity referred to in section 

25 212(k)(2)(B).
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1 ‘‘(j) RIGHTS OF WAY ON FEDERAL LANDS.—

2 ‘‘(1) LEAD AGENCY.—If an applicant, or pro3 spective applicant, for Federal authorization related 

4 to an electricity transmission or distribution facility 

5 so requests, the Department of Energy (DOE) shall 

6 act as the lead agency for purposes of coordinating 

7 all applicable Federal authorization and related envi8 ronmental review of the facility. The term ‘Federal 

9 authorization’ shall mean any authorization required 

10 under Federal law in order to site a transmission or 

11 distribution facility, including but not limited to 

12 such permits, special use authorizations, certifi13 cations, opinions, or other approvals as may be re14 quired, whether issued by a Federal or a State agen15 cy. To the maximum extent practicable under appli16 cable Federal law, the Secretary of Energy shall co17 ordinate this Federal authorization and review proc18 ess with any Indian tribes, multi-State entities, and 

19 State agencies that are responsible for conducting 

20 any separate permitting and environmental reviews 

21 of the facility, to ensure timely and efficient review 

22 and permit decisions. 

23 ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 

24 agency, the Department of Energy, in consultation 

25 with other Federal and, as appropriate, with Indian 
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1 tribes, multi-State entities, and State agencies that 

2 are willing to coordinate their own separate permit3 ting and environmental reviews with the Federal au4 thorization and environmental reviews, shall estab5 lish prompt and binding intermediate milestones and 

6 ultimate deadlines for the review of and Federal au7 thorization decisions relating to the proposed facil8 ity. The Secretary of Energy shall ensure that once 

9 an application has been submitted with such data as 

10 the Secretary deems necessary, all permit decisions 

11 and related environmental reviews under all applica12 ble Federal laws shall be completed within 1 year or, 

13 if a requirement of another provision of Federal law 

14 makes this impossible, as soon thereafter as is prac15 ticable. The Secretary of Energy also shall provide 

16 an expeditious pre-application mechanism for pro17 spective applicants to confer with the agencies in18 volved to have each such agency determine and com19 municate to the prospective applicant within 60 days 

20 of when the prospective applicant submits a request 

21 for such information concerning—

22 ‘‘(A) the likelihood of approval for a poten23 tial facility; and 

24 ‘‘(B) key issues of concern to the agencies 

25 and public. 
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1 ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW

2 AND RECORD OF DECISION.—The Secretary of En3 ergy, in consultation with the affected agencies, shall 

4 prepare a single environmental review document, 

5 which shall be used as the basis for all decisions on 

6 the proposed project under Federal law. The docu7 ment may be an environmental assessment or envi8 ronmental impact statement under the National En9 vironmental Policy Act of 1969 if warranted, or such 

10 other form of analysis as may be warranted. DOE 

11 and other agencies shall streamline the review and 

12 permitting of transmission and distribution facilities 

13 within corridors designated under Section 503 of the 

14 Federal Land Policy and Management Act (43 

15 U.S.C. Section 1763) by fully taking into account 

16 prior analyses and decisions as to the corridors. The 

17 document under this section may consist of or in18 clude an environmental assessment, if allowed by 

19 law, or an environmental impact statement, if war20 ranted or required by law, or such other form of 

21 analysis as warranted, consistent with any require22 ment of the National Environmental Policy Act, the 

23 Federal Land Policy and Management Act, or any 

24 other applicable law. Such document shall include 

25 consideration by the relevant agencies of any appli-
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1 cable criteria or other matters as required under ap2 plicable laws. 

3 ‘‘(4) APPEALS.—In the event that any agency 

4 has denied a Federal authorization required for a 

5 transmission or distribution facility, or has failed to 

6 act by the deadline established by the Secretary pur7 suant to this section for deciding whether to issue 

8 the authorization, the applicant or any State in 

9 which the facility would be located may file an ap10 peal with the Secretary of Energy, who shall, in con11 sultation with the affected agency, review the denial 

12 or take action on the pending application. Based on 

13 the overall record and in consultation with the af14 fected agency, the Secretary may then either issue 

15 the necessary authorization with any appropriate 

16 conditions, or deny the application. The Secretary 

17 shall issue a decision within 90 days of the filing of 

18 the appeal. In making a decision under this para19 graph, the Secretary shall comply with all applicable 

20 requirements of Federal law, including any require21 ments of the Endangered Species Act, the Clean 

22 Water Act, the National Forest Management Act, 

23 the National Environmental Policy Act, and the 

24 Federal Land Management and Policy Act. 
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1 ‘‘(5) CONFORMING REGULATIONS AND MEMO2 RANDA OF AGREEMENT.—Not later than 18 months 

3 after the date of enactment of this section, the Sec4 retary of Energy shall issue any regulations nec5 essary to implement the foregoing provisions. Not 

6 later than 1 year after the date of enactment of this 

7 section, the Secretary and the heads of all relevant 

8 Federal departments and non-departmental agencies 

9 shall, and interested Indian tribes, multi-State enti10 ties, and State agencies may, enter into Memoranda 

11 of Agreement to ensure the timely and coordinated 

12 review and permitting of electricity transmission and 

13 distribution facilities. The head of each Federal de14 partment or non-departmental agency with approval 

15 authority shall designate a senior responsible official 

16 and dedicate sufficient other staff and resources to 

17 ensure that the DOE regulations and any Memo18 randa are fully implemented. 

19 ‘‘(6) MISCELLANEOUS.—Each Federal author20 ization for an electricity transmission or distribution 

21 facility shall be issued for a duration, as determined 

22 by the Secretary of Energy, commensurate with the 

23 anticipated use of the facility and with appropriate 

24 authority to manage the right-of-way for reliability 

25 and environmental protection. Further, when such
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1 authorizations expire, they shall be reviewed for re2 newal taking fully into account reliance on such elec3 tricity infrastructure, recognizing its importance for 

4 public health, safety and economic welfare and as 

5 a legitimate use of Federal lands. 

6 ‘‘(7) MAINTAINING AND ENHANCING THE

7 TRANSMISSION INFRASTRUCTURE.—In exercising the 

8 responsibilities under this Section, the Secretary of 

9 Energy shall consult regularly with the Federal En10 ergy Regulatory Commission (FERC) and FERC11 approved Regional Transmission Organizations and 

12 Independent System Operators. 

13 ‘‘(k) INTERSTATE COMPACTS.—The consent of Con14 gress is hereby given for States to enter into interstate 

15 compacts establishing regional transmission siting agen16 cies to facilitate coordination among the States within 

17 such areas for purposes of siting future electric energy 

18 transmission facilities and to carry out State electric en19 ergy transmission siting responsibilities. The Secretary of 

20 Energy may provide technical assistance to regional trans21 mission siting agencies established under this subsection. 

22 ‘‘(l) SAVINGS CLAUSE.—Nothing in this section shall 

23 be construed to affect any requirement of the environ24 mental laws of the United States, including, but not lim25 ited to, the National Environmental Policy Act of 1969. 
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1 This section shall not apply to any component of the Na2 tional Wilderness Preservation System, the National Wild 

3 and Scenic Rivers System, or the National Park system 

4 (including National Monuments therein).’’. 

5 (b) FEDERAL CORRIDORS.—The Secretary of the In6 terior, the Secretary of Energy, the Secretary of Agri7 culture, and the Chairman of the Council on Environ8 mental Quality shall, within 90 days of the date of enact9 ment of this subsection, submit a joint report to Congress 

10 identifying the following: 

11 (1) all existing designated transmission and dis12 tribution corridors on Federal land and the status of 

13 work related to proposed transmission and distribu14 tion corridor designations, the schedule for com15 pleting such work, any impediments to completing 

16 the work, and steps that Congress could take to ex17 pedite the process; 

18 (2) the number of pending applications to lo19 cate transmission and distribution facilities on Fed20 eral lands, key information relating to each such fa21 cility, how long each application has been pending, 

22 the schedule for issuing a timely decision as to each 

23 facility, and progress in incorporating existing and 

24 new such rights-of-way into relevant land use and 

25 resource management plans or their equivalent; and 
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1 (3) the number of existing transmission and 

2 distribution rights-of-way on Federal lands that will 

3 come up for renewal within the following 5, 10, and 

4 15 year periods, and a description of how the Secre5 taries plan to manage such renewals. 

6 Subtitle B—Transmission 

7 Operation 

8 SEC. 7021. OPEN ACCESS TRANSMISSION BY CERTAIN UTIL9 ITIES. 

10 Part II of the Federal Power Act (16 U.S.C. 824 et 

11 seq.) is amended by inserting after section 211 the fol12 lowing: 

13 ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT14 TING UTILITIES. 

15 ‘‘(a) IN GENERAL.—Subject to section 212(h), the 

16 Commission may, by rule or order, require an unregulated 

17 transmitting utility to provide transmission services—

18 ‘‘(1) at rates that are comparable to those that 

19 the unregulated transmitting utility charges itself, 

20 and 

21 ‘‘(2) on terms and conditions (not relating to 

22 rates) that are comparable to those under which 

23 such unregulated transmitting utility provides trans24 mission services to itself and that are not unduly 

25 discriminatory or preferential. 
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1 ‘‘(b) EXEMPTIONS.—

2 ‘‘(1) IN GENERAL.—The Commission shall ex3 empt from any rule or order under this subsection 

4 any unregulated transmitting utility that—

5 ‘‘(A)(i) sells no more than 4,000,000 

6 megawatt hours of electricity per year; and 

7 ‘‘(ii) is a distribution utility; or 

8 ‘‘(B) does not own or operate any trans9 mission facilities that are necessary for oper10 ating an interconnected transmission system (or 

11 any portion thereof); or 

12 ‘‘(C) meets other criteria the Commission 

13 determines to be in the public interest. 

14 ‘‘(2) LOCAL DISTRIBUTION.— The requirements 

15 of subsection (a) shall not apply to facilities used in 

16 local distribution. 

17 ‘‘(c) RATE CHANGING PROCEDURES.—The rate 

18 changing procedures applicable to public utilities under 

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

20 unregulated transmitting utilities for purposes of this sec21 tion. 

22 ‘‘(d) REMAND.—In exercising its authority under 

23 paragraph (1), the Commission may remand transmission 

24 rates to an unregulated transmitting utility for review and 
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•HR 1644 IH 

1 revision where necessary to meet the requirements of sub2 section (a). 

3 ‘‘(e) SECTION 211 REQUESTS.—The provision of 

4 transmission services under subsection (a) does not pre5 clude a request for transmission services under section 

6 211. 

7 ‘‘(f) DEFINITIONS.—For purposes of this section—

8 ‘‘(1) The term ‘unregulated transmitting utility’ 

9 means an entity that—

10 ‘‘(A) owns or operates facilities used for 

11 the transmission of electric energy in interstate 

12 commerce, and 

13 ‘‘(B) is either an entity described in sec14 tion 201(f) or a rural electric cooperative. 

15 ‘‘(2) The term ‘distribution utility’ means an 

16 unregulated transmitting utility that serves at least 

17 ninety percent of its electric customers at retail.’’. 

18 SEC. 7022. REGIONAL TRANSMISSION ORGANIZATIONS. 

19 (a) SENSE OF THE CONGRESS ON RTOS.—It is the 

20 sense of Congress that, in order to promote fair, open ac21 cess to electric transmission service, benefit retail con22 sumers, facilitate wholesale competition, improve effi23 ciencies in transmission grid management, promote grid 

24 reliability, remove opportunities for unduly discriminatory 

25 or preferential transmission practices, and provide for the
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1 efficient development of transmission infrastructure need2 ed to meet the growing demands of competitive wholesale 

3 power markets, all transmitting utilities in interstate com4 merce should voluntarily become members of independ5 ently administered regional transmission organizations 

6 that have operational control of interstate transmission fa7 cilities and do not own or control generation facilities used 

8 to supply electric energy for sale at wholesale. 

9 (b) SENSE OF THE CONGRESS ON CAPITAL INVEST10 MENT.—It is the sense of the Congress that the Federal 

11 Energy Regulatory Commission should provide to any 

12 transmitting utility that becomes a member of an oper13 ational regional transmitting organization approved by the 

14 Commission a return on equity sufficient to attract new 

15 investment capital for expansion of transmission capacity, 

16 in accordance with sections 205 and 206 of the Federal 

17 Power Act (16 U.S.C. 824d and 824e), including the re18 quirement that rates be just and reasonable. 

19 (c) REPORT ON PENDING APPLICATIONS.—Not later 

20 than 120 days after the date of enactment of this section, 

21 the Federal Energy Regulatory Commission shall submit 

22 to the Committee on Energy and Commerce of the United 

23 States House of Representatives and the Committee on 

24 Energy and Natural Resources of the United States Sen25 ate a report containing the following: 
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1 (1) A list of all regional transmission organiza2 tion applications filed at the Commission pursuant 

3 to the Commission’s Order No. 2000, including an 

4 identification of each public utility and other entity 

5 included within the proposed membership of the re6 gional transmission organization. 

7 (2) A table showing the date each such applica8 tion was filed, the date of any revised filings of such 

9 application, the date of each preliminary or final 

10 Commission order regarding such application, and a 

11 statement of whether the application has been re12 jected, preliminarily approved, finally approved, or 

13 has some other status (including a description of 

14 that status). 

15 (3) For any application that has not been fi16 nally approved by the Commission, a detailed de17 scription of every aspect of the application that the 

18 Commission has determined does not conform to the 

19 requirements of Order No. 2000. 

20 (4) For any application that has not been fi21 nally approved by the Commission, an explanation 

22 by the Commission of why the items described pur23 suant to paragraph (3) constitute material non24 compliance with the requirements of the Commis-
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1 sion’s Order No. 2000 sufficient to justify denial of 

2 approval by the Commission. 

3 (5) For all regional transmission organization 

4 applications filed pursuant to the Commission’s 

5 Order No. 2000, whether finally approved or not—

6 (A) a discussion of that regional trans7 mission organization’s efforts to minimize rate 

8 seams between itself and—

9 (i) other regional transmission organi10 zations; and 

11 (ii) entities not participating in a re12 gional transmission organization; and 

13 (B) a discussion of the impact of such 

14 seams on consumers and wholesale competition; 

15 and 

16 (C) a discussion of minimizing cost-shifting 

17 on consumers. 

18 (d) FEDERAL UTILITY PARTICIPATION IN RTOS.—

19 (1) DEFINITIONS.—For purposes of this sec20 tion—

21 (A) The term ‘‘appropriate Federal regu22 latory authority’’ means— 

23 (i) with respect to a Federal power 

24 marketing agency, the Secretary of En25 ergy, except that the Secretary may des-
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1 ignate the Administrator of a Federal 

2 power marketing agency to act as the ap3 propriate Federal regulatory authority with 

4 respect to the transmission system of that 

5 Federal power marketing agency; and 

6 (ii) with respect to the Tennessee Val7 ley Authority, the Board of Directors of 

8 the Tennessee Valley Authority. 

9 (B) The term ‘‘Federal utility’’ means a 

10 Federal power marketing agency or the Ten11 nessee Valley Authority. 

12 (C) The term ‘‘transmission system’’ 

13 means electric transmission facilities owned, 

14 leased, or contracted for by the United States 

15 and operated by a Federal utility. 

16 (2) TRANSFER.—The appropriate Federal regu17 latory authority is authorized to enter into a con18 tract, agreement or other arrangement transferring 

19 control and use of all or part of the Federal utility’s 

20 transmission system to a regional transmission orga21 nization approved by the Federal Energy Regulatory 

22 Commission. Such contract, agreement or arrange23 ment shall include—

24 (A) performance standards for operation 

25 and use of the transmission system that the
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•HR 1644 IH 

1 head of the Federal utility determines necessary 

2 or appropriate, including standards that assure 

3 recovery of all the Federal utility’s costs and 

4 expenses related to the transmission facilities 

5 that are the subject of the contract, agreement 

6 or other arrangement, consistency with existing 

7 contracts and third-party financing arrange8 ments, and consistency with said Federal util9 ity’s statutory authorities, obligations, and limi10 tations; 

11 (B) provisions for monitoring and over12 sight by the Federal utility of the regional 

13 transmission organization’s fulfillment of the 

14 terms and conditions of the contract, agreement 

15 or other arrangement, including a provision 

16 that may provide for the resolution of disputes 

17 through arbitration or other means with the re18 gional transmission organization or with other 

19 participants, notwithstanding the obligations 

20 and limitations of any other law regarding arbi21 tration; and 

22 (C) a provision that allows the Federal 

23 utility to withdraw from the regional trans24 mission organization and terminate the con-
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•HR 1644 IH 

1 tract, agreement or other arrangement in ac2 cordance with its terms. 

3 Neither this section, actions taken pursuant to it, 

4 nor any other transaction of a Federal utility using 

5 a regional transmission organization shall serve to 

6 confer upon the Federal Energy Regulatory Com7 mission jurisdiction or authority over the Federal 

8 utility’s electric generation assets, electric capacity 

9 or energy that the Federal utility is authorized by 

10 law to market, or the Federal utility’s power sales 

11 activities. 

12 (3) EXISTING STATUTORY AND OTHER OBLIGA13 TIONS.—

14 (A) SYSTEM OPERATION REQUIRE15 MENTS.—Any statutory provision requiring or 

16 authorizing a Federal utility to transmit electric 

17 power or to construct, operate or maintain its 

18 transmission system shall not be construed to 

19 prohibit a transfer of control and use of its 

20 transmission system pursuant to, and subject to 

21 all requirements of paragraph (2). 

22 (B) OTHER OBLIGATIONS.—This sub23 section shall not be construed to—

24 (i) suspend, or exempt any Federal 

25 utility from, any provision of existing Fed-
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•HR 1644 IH 

1 eral law, including but not limited to any 

2 requirement or direction relating to the use 

3 of the Federal utility’s transmission sys4 tem, environmental protection, fish and 

5 wildlife protection, flood control, naviga6 tion, water delivery, or recreation; or 

7 (ii) authorize abrogation of any con8 tract or treaty obligation. 

9 SEC. 7023. NATIVE LOAD. 

10 Part II of the Federal Power Act (16 U.S.C. 824 et 

11 seq.) is amended by adding the following new section at 

12 the end thereof: 

13 ‘‘SEC. 217. SERVICE OBLIGATIONS OF LOAD-SERVING ENTI14 TIES. 

15 ‘‘(a) IN GENERAL.—In exercising authority under 

16 this Act, the Commission shall ensure that any load-serv17 ing entity that either—

18 ‘‘(1) owns transmission facilities for the trans19 mission of electric energy in interstate commerce 

20 used to purchase or deliver electric energy to meet—

21 ‘‘(A) a service obligation to customers; or 

22 ‘‘(B) an existing wholesale contractual obli23 gation; or 
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1 ‘‘(2) holds a contract or service agreement for 

2 firm transmission service used to purchase or deliver 

3 electric energy to meet—

4 ‘‘(A) a service obligation to customers; or 

5 ‘‘(B) an existing wholesale contractual obli6 gation 

7 shall be entitled to use such transmission facilities or 

8 equivalent transmission rights to meet such obligations be9 fore transmission capacity is made available for other 

10 uses. 

11 ‘‘(b) USE BY SUCCESSOR IN INTEREST.—To the ex12 tent that all or a portion of the service obligation or con13 tractual obligation covered by subsection (a) is transferred 

14 to another load serving entity, the successor shall be enti15 tled to use such transmission facilities or firm trans16 mission rights associated with the transferred service obli17 gation consistent with subsection (a). Subsequent trans18 fers to another load serving entity, or back to the original 

19 load-serving entity, shall be entitled to the same rights. 

20 ‘‘(c) OTHER ENTITIES.—The Commission may exer21 cise authority under this Act to make transmission rights 

22 not used to meet an obligation covered by subsection (a) 

23 available to other entities in a manner determined by the 

24 Commission to be not unduly discriminatory or pref25 erential. 
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1 ‘‘(d) DEFINITIONS.—For the purposes of this section: 

2 ‘‘(1) The term ‘load-serving entity’ means an 

3 electric utility, transmitting utility or Federal power 

4 marketing agency that has an obligation under Fed5 eral, State, or local law, or under long-term con6 tracts, to provide electric service to either—

7 ‘‘(A) electric consumers (as defined in sec8 tion 3(5) of the Public Utility Regulatory Poli9 cies Act of 1978 (16 U.S.C. 2602(5)); or 

10 ‘‘(B) an electric utility as defined in sec11 tion 3(4) of the Public Utility Regulatory Poli12 cies Act of 1978 (16 U.S.C. 2602(5)) that has 

13 an obligation to provide electric service to elec14 tric consumers. 

15 Such obligations shall be deemed ‘service obliga16 tions’. 

17 ‘‘(2) The term ‘existing wholesale contractual 

18 obligation’ means an obligation under a firm long19 term wholesale contract that was in effect on March 

20 28, 2003. A contract modification after March 28, 

21 2003 (other than one that increases the quantity of 

22 electric energy sold under the contract) shall not af23 fect the status of such contract as an existing whole24 sale contractual obligation.
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1 ‘‘(e) RELATIONSHIP TO OTHER PROVISIONS.—To the 

2 extent that a transmitting utility reserves transmission ca3 pacity (or reserves the equivalent amount of tradable 

4 transmission rights) to provide firm transmission service 

5 to meet service obligations or firm long-term wholesale 

6 contractual obligations pursuant to subsection (a), that 

7 transmitting utility shall not be considered as engaging 

8 in undue discrimination or preference under this Act. 

9 ‘‘(f) JURISDICTION.—This section shall not apply to 

10 an entity located in an area referred to in section 

11 212(k)(2)(A).

12 ‘‘(g) SAVINGS CLAUSE.—Nothing in this section shall 

13 affect any allocation of transmission rights by the PJM 

14 Interconnection, the New York Independent System Oper15 ator, the New England Independent System Operator, the 

16 Midwest Independent System Operator, or the California 

17 Independent System Operator. Nothing in this section 

18 shall provide a basis for abrogating any contract for firm 

19 transmission service or rights in effect as of the date of 

20 enactment of this section.’’.

21 Subtitle C—Reliability 

22 SEC. 7031. ELECTRIC RELIABILITY STANDARDS. 

23 Part II of the Federal Power Act (16 U.S.C 824 et 

24 seq.) is amended by inserting the following new section 

25 at the end thereof: 
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1 ‘‘SEC. 217. ELECTRIC RELIABILITY. 

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

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

4 ‘‘(A) facilities and control systems nec5 essary for operating an interconnected electric 

6 energy transmission network (or any portion 

7 thereof); and 

8 ‘‘(B) electric energy from generation facili9 ties needed to maintain transmission system re10 liability. 

11 The term does not include facilities used in the local 

12 distribution of electric energy. 

13 ‘‘(2) The terms ‘Electric Reliability Organiza14 tion’ and ‘ERO’ mean the organization certified by 

15 the Commission under subsection (c) the purpose of 

16 which is to establish and enforce reliability stand17 ards for the bulk-power system, subject to Commis18 sion review. 

19 ‘‘(3) The term ‘reliability standard’ means a re20 quirement, approved by the Commission under this 

21 section, to provide for reliable operation of the bulk22 power system. The term includes requirements for 

23 the operation of existing bulk-power system facilities 

24 and the design of planned additions or modifications 

25 to such facilities to the extent necessary to provide 

26 for reliable operation of the bulk-power system, but 
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1 the term does not include any requirement to en2 large such facilities or to construct new transmission 

3 capacity or generation capacity. 

4 ‘‘(4) The term ‘reliable operation’ means oper5 ating the elements of the bulk-power system within 

6 equipment and electric system thermal, voltage, and 

7 stability limits so that instability, uncontrolled sepa8 ration, or cascading failures of such system will not 

9 occur as a result of a sudden disturbance or unan10 ticipated failure of system elements. 

11 ‘‘(5) The term ‘Interconnection’ means a geo12 graphic area in which the operation of bulk-power 

13 system components is synchronized such that the 

14 failure of one or more of such components may ad15 versely affect the ability of the operators of other 

16 components within the system to maintain reliable 

17 operation of the facilities within their control. 

18 ‘‘(6) The term ‘transmission organization’ 

19 means a regional transmission organization, inde20 pendent system operator, independent transmission 

21 provider, or other transmission organization finally 

22 approved by the Commission for the operation of 

23 transmission facilities. 
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1 ‘‘(7) The term ‘regional entity’ means an entity 

2 having enforcement authority pursuant to subsection 

3 (e)(4). 

4 ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 

5 Commission shall have jurisdiction, within the United 

6 States, over the ERO certified by the Commission under 

7 subsection (c), any regional entities, and all users, owners 

8 and operators of the bulk-power system, including but not 

9 limited to the entities described in section 201(f), for pur10 poses of approving reliability standards established under 

11 this section and enforcing compliance with this section. All 

12 users, owners and operators of the bulk-power system 

13 shall comply with reliability standards that take effect 

14 under this section. 

15 ‘‘(2) The Commission shall issue a final rule to imple16 ment the requirements of this section not later than 180 

17 days after the date of enactment of this section. 

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

19 Commission rule under subsection (b)(2), any person may 

20 submit an application to the Commission for certification 

21 as the Electric Reliability Organization (ERO). The Com22 mission may certify one such ERO if the Commission de23 termines that such ERO—

24 ‘‘(1) has the ability to develop and enforce, sub25 ject to subsection (e)(2), reliability standards that 
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1 provide for an adequate level of reliability of the 

2 bulk-power system; 

3 ‘‘(2) has established rules that—

4 ‘‘(A) assure its independence of the users 

5 and owners and operators of the bulk-power 

6 system, while assuring fair stakeholder rep7 resentation in the selection of its directors and 

8 balanced decisionmaking in any ERO com9 mittee or subordinate organizational structure; 

10 ‘‘(B) allocate equitably reasonable dues, 

11 fees, and other charges among end users for all 

12 activities under this section; 

13 ‘‘(C) provide fair and impartial procedures 

14 for enforcement of reliability standards through 

15 the imposition of penalties in accordance with 

16 subsection (e) (including limitations on activi17 ties, functions, or operations, or other appro18 priate sanctions); 

19 ‘‘(D) provide for reasonable notice and op20 portunity for public comment, due process, 

21 openness, and balance of interests in developing 

22 reliability standards and otherwise exercising its 

23 duties; and
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1 ‘‘(E) provide for taking, after certification, 

2 appropriate steps to gain recognition in Canada 

3 and Mexico. 

4 ‘‘(d) RELIABILITY STANDARDS.—(1) The Electric 

5 Reliability Organization shall file each reliability standard 

6 or modification to a reliability standard that it proposes 

7 to be made effective under this section with the Commis8 sion. 

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

10 a proposed reliability standard or modification to a reli11 ability standard if it determines that the standard is just, 

12 reasonable, not unduly discriminatory or preferential, and 

13 in the public interest. The Commission shall give due 

14 weight to the technical expertise of the Electric Reliability 

15 Organization with respect to the content of a proposed 

16 standard or modification to a reliability standard and to 

17 the technical expertise of a regional entity organized on 

18 an Interconnection-wide basis with respect to a reliability 

19 standard to be applicable within that Interconnection, but 

20 shall not defer with respect to the effect of a standard 

21 on competition. A proposed standard or modification shall 

22 take effect upon approval by the Commission. 

23 ‘‘(3) The Electric Reliability Organization shall 

24 rebuttably presume that a proposal from a regional entity 

25 organized on an Interconnection-wide basis for a reliability 
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1 standard or modification to a reliability standard to be ap2 plicable on an Interconnection-wide basis is just, reason3 able, and not unduly discriminatory or preferential, and 

4 in the public interest. 

5 ‘‘(4) The Commission shall remand to the Electric 

6 Reliability Organization for further consideration a pro7 posed reliability standard or a modification to a reliability 

8 standard that the Commission disapproves in whole or in 

9 part. 

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

11 complaint, may order the Electric Reliability Organization 

12 to submit to the Commission a proposed reliability stand13 ard or a modification to a reliability standard that ad14 dresses a specific matter if the Commission considers such 

15 a new or modified reliability standard appropriate to carry 

16 out this section. 

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

18 shall include fair processes for the identification and time19 ly resolution of any conflict between a reliability standard 

20 and any function, rule, order, tariff, rate schedule, or 

21 agreement accepted, approved, or ordered by the Commis22 sion applicable to a transmission organization. Such trans23 mission organization shall continue to comply with such 

24 function, rule, order, tariff, rate schedule or agreement ac25 cepted approved, or ordered by the Commission until—
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1 ‘‘(A) the Commission finds a conflict exists be2 tween a reliability standard and any such provision; 

3 ‘‘(B) the Commission orders a change to such 

4 provision pursuant to section 206 of this part; and 

5 ‘‘(C) the ordered change becomes effective 

6 under this part. 

7 If the Commission determines that a reliability standard 

8 needs to be changed as a result of such a conflict, it shall 

9 order the ERO to develop and file with the Commission 

10 a modified reliability standard under paragraph (4) or (5) 

11 of this subsection. 

12 ‘‘(e) ENFORCEMENT.—(1) The ERO may impose, 

13 subject to paragraph (2), a penalty on a user or owner 

14 or operator of the bulk-power system for a violation of a 

15 reliability standard approved by the Commission under 

16 subsection (d) if the ERO, after notice and an opportunity 

17 for a hearing—

18 ‘‘(A) finds that the user or owner or operator 

19 has violated a reliability standard approved by the 

20 Commission under subsection (d); and 

21 ‘‘(B) files notice and the record of the pro22 ceeding with the Commission. 

23 ‘‘(2) A penalty imposed under paragraph (1) may 

24 take effect not earlier than the 31st day after the electric 

25 reliability organization files with the Commission notice of 
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1 the penalty and the record of proceedings. Such penalty 

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

3 motion or upon application by the user, owner or operator 

4 that is the subject of the penalty filed within 30 days after 

5 the date such notice is filed with the Commission. Applica6 tion to the Commission for review, or the initiation of re7 view by the Commission on its own motion, shall not oper8 ate as a stay of such penalty unless the Commission other9 wise orders upon its own motion or upon application by 

10 the user, owner or operator that is the subject of such 

11 penalty. In any proceeding to review a penalty imposed 

12 under paragraph (1), the Commission, after notice and op13 portunity for hearing (which hearing may consist solely 

14 of the record before the electric reliability organization and 

15 opportunity for the presentation of supporting reasons to 

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

17 affirm, set aside, reinstate, or modify the penalty, and, 

18 if appropriate, remand to the electric reliability organiza19 tion for further proceedings. The Commission shall imple20 ment expedited procedures for such hearings. 

21 ‘‘(3) On its own motion or upon complaint, the Com22 mission may order compliance with a reliability standard 

23 and may impose a penalty against a user or owner or oper24 ator of the bulk-power system, if the Commission finds, 

25 after notice and opportunity for a hearing, that the user 
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1 or owner or operator of the bulk-power system has en2 gaged or is about to engage in any acts or practices that 

3 constitute or will constitute a violation of a reliability 

4 standard. 

5 ‘‘(4) The Commission shall establish regulations au6 thorizing the ERO to enter into an agreement to delegate 

7 authority to a regional entity for the purpose of proposing 

8 reliability standards to the ERO and enforcing reliability 

9 standards under paragraph (1) if—

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

11 ‘‘(i) an independent board; 

12 ‘‘(ii) a balanced stakeholder board; or 

13 ‘‘(iii) a combination independent and bal14 anced stakeholder board.’’

15 ‘‘(B) the regional entity otherwise satisfies the 

16 provisions of subsection (c)(1) and (2); and 

17 ‘‘(C) the agreement promotes effective and effi18 cient administration of bulk-power system reliability. 

19 The Commission may modify such delegation. The ERO 

20 and the Commission shall rebuttably presume that a pro21 posal for delegation to a regional entity organized on an 

22 Interconnection-wide basis promotes effective and efficient 

23 administration of bulk-power system reliability and should 

24 be approved. Such regulation may provide that the Com25 mission may assign the ERO’s authority to enforce reli-
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1 ability standards under paragraph (1) directly to a re2 gional entity consistent with the requirements of this para3 graph. 

4 ‘‘(5) The Commission may take such action as is nec5 essary or appropriate against the ERO or a regional entity 

6 to ensure compliance with a reliability standard or any 

7 Commission order affecting the ERO or a regional entity. 

8 ‘‘(6) Any penalty imposed under this section shall 

9 bear a reasonable relation to the seriousness of the viola10 tion and shall take into consideration the efforts of such 

11 user, owner, or operator to remedy the violation in a time12 ly manner. 

13 ‘‘(f) CHANGES IN ELECTRICITY RELIABILITY ORGA14 NIZATION RULES.—The Electric Reliability Organization 

15 shall file with the Commission for approval any proposed 

16 rule or proposed rule change, accompanied by an expla17 nation of its basis and purpose. The Commission, upon 

18 its own motion or complaint, may propose a change to the 

19 rules of the Electric Reliability Organization. A proposed 

20 rule or proposed rule change shall take effect upon a find21 ing by the Commission, after notice and opportunity for 

22 comment, that the change is just, reasonable, not unduly 

23 discriminatory or preferential, is in the public interest, and 

24 satisfies the requirements of subsection (c).
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1 ‘‘(g) RELIABILITY REPORTS.—The Electric Reli2 ability Organization shall conduct periodic assessments of 

3 the reliability and adequacy of the bulk-power system in 

4 North America. 

5 ‘‘(h) COORDINATION WITH CANADA AND MEXICO.—

6 The President is urged to negotiate international agree7 ments with the governments of Canada and Mexico to pro8 vide for effective compliance with reliability standards and 

9 the effectiveness of the Electric Reliability Organization 

10 in the United States and Canada or Mexico. 

11 ‘‘(i) SAVINGS PROVISIONS.—(1) The Electric Reli12 ability Organization shall have authority to develop and 

13 enforce compliance with reliability standards for only the 

14 bulk-power system. 

15 ‘‘(2) This section does not authorize the Electric Reli16 ability Organization or the Commission to order the con17 struction of additional generation or transmission capacity 

18 or to set and enforce compliance with standards for ade19 quacy or safety of electric facilities or services. 

20 ‘‘(3) Nothing in this section shall be construed to pre21 empt any authority of any State to take action to ensure 

22 the safety, adequacy, and reliability of electric service 

23 within that State, as long as such action is not incon24 sistent with any reliability standard, except that the State 

25 of New York may establish rules that result in greater 
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1 reliability within that State, as long as such action does 

2 not result in lesser reliability outside the State than that 

3 provided by the reliability standards. 

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

5 Reliability Organization or other affected party, and after 

6 notice and opportunity for comment, the Commission shall 

7 issue a final order determining whether a State action is 

8 inconsistent with a reliability standard, taking into consid9 eration any recommendation of the Electric Reliability Or10 ganization. 

11 ‘‘(5) The Commission, after consultation with the 

12 Electric Reliability Organization and the State taking ac13 tion, may stay the effectiveness of any State action, pend14 ing the Commission’s issuance of a final order. 

15 ‘‘(j) REGIONAL ADVISORY BODIES.—The Commis16 sion shall establish a regional advisory body on the petition 

17 of at least two-thirds of the States within a region that 

18 have more than one-half of their electric load served within 

19 the region. A regional advisory body shall be composed of 

20 one member from each participating State in the region, 

21 appointed by the Governor of each State, and may include 

22 representatives of agencies, States, and provinces outside 

23 the United States. A regional advisory body may provide 

24 advice to the Electric Reliability Organization, a regional 

25 entity, or the Commission regarding the governance of an 
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1 existing or proposed regional entity within the same re2 gion, whether a standard proposed to apply within the re3 gion is just, reasonable, not unduly discriminatory or pref4 erential, and in the public interest, whether fees proposed 

5 to be assessed within the region are just, reasonable, not 

6 unduly discriminatory or preferential, and in the public 

7 interest and any other responsibilities requested by the 

8 Commission. The Commission may give deference to the 

9 advice of any such regional advisory body if that body is 

10 organized on an Interconnection-wide basis. 

11 ‘‘(k) APPLICATION TO ALASKA AND HAWAII.—The 

12 provisions of this section do not apply to Alaska or Ha13 waii.’’. 

14 Subtitle D—PUHCA Amendments 

15 SEC. 7041. SHORT TITLE. 

16 This subtitle may be cited as the ‘‘Public Utility 

17 Holding Company Act of 2003’’. 

18 SEC. 7042. DEFINITIONS. 

19 For purposes of this subtitle: 

20 (1) The term ‘‘affiliate’’ of a company means 

21 any company, 5 percent or more of the outstanding 

22 voting securities of which are owned, controlled, or 

23 held with power to vote, directly or indirectly, by 

24 such company. 
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1 (2) The term ‘‘associate company’’ of a com2 pany means any company in the same holding com3 pany system with such company. 

4 (3) The term ‘‘Commission’’ means the Federal 

5 Energy Regulatory Commission. 

6 (4) The term ‘‘company’’ means a corporation, 

7 partnership, association, joint stock company, busi8 ness trust, or any organized group of persons, 

9 whether incorporated or not, or a receiver, trustee, 

10 or other liquidating agent of any of the foregoing. 

11 (5) The term ‘‘electric utility company’’ means 

12 any company that owns or operates facilities used 

13 for the generation, transmission, or distribution of 

14 electric energy for sale. 

15 (6) The terms ‘‘exempt wholesale generator’’ 

16 and ‘‘foreign utility company’’ have the same mean17 ings as in sections 32 and 33, respectively, of the 

18 Public Utility Holding Company Act of 1935 (15 

19 U.S.C. 79z–5a, 79z–5b), as those sections existed on 

20 the day before the effective date of this subtitle. 

21 (7) The term ‘‘gas utility company’’ means any 

22 company that owns or operates facilities used for 

23 distribution at retail (other than the distribution 

24 only in enclosed portable containers or distribution 

25 to tenants or employees of the company operating 
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1 such facilities for their own use and not for resale) 

2 of natural or manufactured gas for heat, light, or 

3 power. 

4 (8) The term ‘‘holding company’’ means— 

5 (A) any company that directly or indirectly 

6 owns, controls, or holds, with power to vote, 10 

7 percent or more of the outstanding voting secu8 rities of a public utility company or of a holding 

9 company of any public utility company; and 

10 (B) any person, determined by the Com11 mission, after notice and opportunity for hear12 ing, to exercise directly or indirectly (either 

13 alone or pursuant to an arrangement or under14 standing with one or more persons) such a con15 trolling influence over the management or poli16 cies of any public utility company or holding 

17 company as to make it necessary or appropriate 

18 for the rate protection of utility customers with 

19 respect to rates that such person be subject to 

20 the obligations, duties, and liabilities imposed 

21 by this subtitle upon holding companies. 

22 (9) The term ‘‘holding company system’’ means 

23 a holding company, together with its subsidiary com24 panies.
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1 (10) The term ‘‘jurisdictional rates’’ means 

2 rates established by the Commission for the trans3 mission of electric energy in interstate commerce, 

4 the sale of electric energy at wholesale in interstate 

5 commerce, the transportation of natural gas in inter6 state commerce, and the sale in interstate commerce 

7 of natural gas for resale for ultimate public con8 sumption for domestic, commercial, industrial, or 

9 any other use. 

10 (11) The term ‘‘natural gas company’’ means a 

11 person engaged in the transportation of natural gas 

12 in interstate commerce or the sale of such gas in 

13 interstate commerce for resale. 

14 (12) The term ‘‘person’’ means an individual or 

15 company. 

16 (13) The term ‘‘public utility’’ means any per17 son who owns or operates facilities used for trans18 mission of electric energy in interstate commerce or 

19 sales of electric energy at wholesale in interstate 

20 commerce. 

21 (14) The term ‘‘public utility company’’ means 

22 an electric utility company or a gas utility company. 

23 (15) The term ‘‘State commission’’ means any 

24 commission, board, agency, or officer, by whatever 

25 name designated, of a State, municipality, or other 
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1 political subdivision of a State that, under the laws 

2 of such State, has jurisdiction to regulate public util3 ity companies. 

4 (16) The term ‘‘subsidiary company’’ of a hold5 ing company means— 

6 (A) any company, 10 percent or more of 

7 the outstanding voting securities of which are 

8 directly or indirectly owned, controlled, or held 

9 with power to vote, by such holding company; 

10 and 

11 (B) any person, the management or poli12 cies of which the Commission, after notice and 

13 opportunity for hearing, determines to be sub14 ject to a controlling influence, directly or indi15 rectly, by such holding company (either alone or 

16 pursuant to an arrangement or understanding 

17 with one or more other persons) so as to make 

18 it necessary for the rate protection of utility 

19 customers with respect to rates that such per20 son be subject to the obligations, duties, and li21 abilities imposed by this subtitle upon sub22 sidiary companies of holding companies. 

23 (17) The term ‘‘voting security’’ means any se24 curity presently entitling the owner or holder thereof 
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1 to vote in the direction or management of the affairs 

2 of a company. 

3 SEC. 7043. REPEAL OF THE PUBLIC UTILITY HOLDING COM4 PANY ACT OF 1935. 

5 The Public Utility Holding Company Act of 1935 (15 

6 U.S.C. 79 et seq.) is repealed. 

7 SEC. 7044. FEDERAL ACCESS TO BOOKS AND RECORDS. 

8 (a) IN GENERAL.—Each holding company and each 

9 associate company thereof shall maintain, and shall make 

10 available to the Commission, such books, accounts, memo11 randa, and other records as the Commission deems to be 

12 relevant to costs incurred by a public utility or natural 

13 gas company that is an associate company of such holding 

14 company and necessary or appropriate for the protection 

15 of utility customers with respect to jurisdictional rates. 

16 (b) AFFILIATE COMPANIES.—Each affiliate of a hold17 ing company or of any subsidiary company of a holding 

18 company shall maintain, and shall make available to the 

19 Commission, such books, accounts, memoranda, and other 

20 records with respect to any transaction with another affil21 iate, as the Commission deems to be relevant to costs in22 curred by a public utility or natural gas company that is 

23 an associate company of such holding company and nec24 essary or appropriate for the protection of utility cus25 tomers with respect to jurisdictional rates. 
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1 (c) HOLDING COMPANY SYSTEMS.—The Commission 

2 may examine the books, accounts, memoranda, and other 

3 records of any company in a holding company system, or 

4 any affiliate thereof, as the Commission deems to be rel5 evant to costs incurred by a public utility or natural gas 

6 company within such holding company system and nec7 essary or appropriate for the protection of utility cus8 tomers with respect to jurisdictional rates. 

9 (d) CONFIDENTIALITY.—No member, officer, or em10 ployee of the Commission shall divulge any fact or infor11 mation that may come to his or her knowledge during the 

12 course of examination of books, accounts, memoranda, or 

13 other records as provided in this section, except as may 

14 be directed by the Commission or by a court of competent 

15 jurisdiction. 

16 SEC. 7045. STATE ACCESS TO BOOKS AND RECORDS. 

17 (a) In GENERAL.—Upon the written request of a 

18 State commission having jurisdiction to regulate a public 

19 utility company in a holding company system, the holding 

20 company or any associate company or affiliate thereof, 

21 other than such public utility company, wherever located, 

22 shall produce for inspection books, accounts, memoranda, 

23 and other records that—

24 (1) have been identified in reasonable detail by 

25 the State commission; 
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1 (2) the State commission deems are relevant to 

2 costs incurred by such public utility company; and 

3 (3) are necessary for the effective discharge of 

4 the responsibilities of the State commission with re5 spect to such proceeding. 

6 (b) LIMITATION.—Subsection (a) does not apply to 

7 any person that is a holding company solely by reason of 

8 ownership of one or more qualifying facilities under the 

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

10 2601 et seq.). 

11 (c) CONFIDENTIALITY OF INFORMATION.—The pro12 duction of books, accounts, memoranda, and other records 

13 under subsection (a) shall be subject to such terms and 

14 conditions as may be necessary and appropriate to safe15 guard against unwarranted disclosure to the public of any 

16 trade secrets or sensitive commercial information. 

17 (d) EFFECT ON STATE LAW.—Nothing in this sec18 tion shall preempt applicable State law concerning the pro19 vision of books, accounts, memoranda, and other records, 

20 or in any way limit the rights of any State to obtain books, 

21 accounts, memoranda, and other records under any other 

22 Federal law, contract, or otherwise. 

23 (e) COURT JURISDICTION.—Any United States dis24 trict court located in the State in which the State commis-
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1 sion referred to in subsection (a) is located shall have ju2 risdiction to enforce compliance with this section. 

3 SEC. 7046. EXEMPTION AUTHORITY. 

4 (a) RULEMAKING.—Not later than 90 days after the 

5 effective date of this subtitle, the Commission shall pro6 mulgate a final rule to exempt from the requirements of 

7 section 7044 (relating to Federal access to books and 

8 records) any person that is a holding company, solely with 

9 respect to one or more—

10 (1) qualifying facilities under the Public Utility 

11 Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 

12 seq.); 

13 (2) exempt wholesale generators; or 

14 (3) foreign utility companies. 

15 (b) OTHER AUTHORITY.—The Commission shall ex16 empt a person or transaction from the requirements of 

17 section 7044 (relating to Federal access to books and 

18 records) if, upon application or upon the motion of the 

19 Commission— 

20 (1) the Commission finds that the books, ac21 counts, memoranda, and other records of any person 

22 are not relevant to the jurisdictional rates of a pub23 lic utility or natural gas company; or
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1 (2) the Commission finds that any class of 

2 transactions is not relevant to the jurisdictional 

3 rates of a public utility or natural gas company. 

4 SEC. 7047. AFFILIATE TRANSACTIONS. 

5 (a) COMMISSION AUTHORITY UNAFFECTED.—Noth6 ing in this subtitle shall limit the authority of the Commis7 sion under the Federal Power Act (16 U.S.C. 791a et seq.) 

8 to require that jurisdictional rates are just and reasonable, 

9 including the ability to deny or approve the pass through 

10 of costs, the prevention of cross-subsidization, and the pro11 mulgation of such rules and regulations as are necessary 

12 or appropriate for the protection of utility consumers. 

13 (b) RECOVERY OF COSTS.—Nothing in this subtitle 

14 shall preclude the Commission or a State commission from 

15 exercising its jurisdiction under otherwise applicable law 

16 to determine whether a public utility company, public util17 ity, or natural gas company may recover in rates any costs 

18 of an activity performed by an associate company, or any 

19 costs of goods or services acquired by such public utility 

20 company from an associate company. 

21 SEC. 7048. APPLICABILITY. 

22 Except as otherwise specifically provided in this sub23 title, no provision of this subtitle shall apply to, or be 

24 deemed to include— 

25 (1) the United States; 
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1 (2) a State or any political subdivision of a 

2 State; 

3 (3) any foreign governmental authority not op4 erating in the United States; 

5 (4) any agency, authority, or instrumentality of 

6 any entity referred to in paragraph (1), (2), or (3); 

7 or 

8 (5) any officer, agent, or employee of any entity 

9 referred to in paragraph (1), (2), or (3) acting as 

10 such in the course of his or her official duty. 

11 SEC. 7049. EFFECT ON OTHER REGULATIONS. 

12 Nothing in this subtitle precludes the Commission or 

13 a State commission from exercising its jurisdiction under 

14 otherwise applicable law to protect utility customers. 

15 SEC. 7050. ENFORCEMENT. 

16 The Commission shall have the same powers as set 

17 forth in sections 306 through 317 of the Federal Power 

18 Act (16 U.S.C. 825e–825p) to enforce the provisions of 

19 this subtitle. 

20 SEC. 7051. SAVINGS PROVISIONS. 

21 (a) IN GENERAL.—Nothing in this subtitle prohibits 

22 a person from engaging in or continuing to engage in ac23 tivities or transactions in which it is legally engaged or 

24 authorized to engage on the date of enactment of this Act, 
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1 so long as that person continues to comply with the terms 

2 of any such authorization, whether by rule or by order. 

3 (b) EFFECT ON OTHER COMMISSION AUTHORITY.—

4 Nothing in this subtitle limits the authority of the Com5 mission under the Federal Power Act (16 U.S.C. 791a et 

6 seq.) (including section 301 of that Act) or the Natural 

7 Gas Act (15 U.S.C. 717 et seq.) (including section 8 of 

8 that Act). 

9 SEC. 7052. IMPLEMENTATION. 

10 Not later than 12 months after the date of enactment 

11 of this subtitle, the Commission shall— 

12 (1) promulgate such regulations as may be nec13 essary or appropriate to implement this subtitle 

14 (other than section 7045, relating to State access to 

15 books and records); and 

16 (2) submit to the Congress detailed rec17 ommendations on technical and conforming amend18 ments to Federal law necessary to carry out this 

19 subtitle and the amendments made by this subtitle. 

20 SEC. 7053. TRANSFER OF RESOURCES. 

21 All books and records that relate primarily to the 

22 functions transferred to the Commission under this sub23 title shall be transferred from the Securities and Exchange 

24 Commission to the Commission. 
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1 SEC. 7054. EFFECTIVE DATE. 

2 This subtitle shall take effect 12 months after the 

3 date of enactment of this subtitle. 

4 SEC. 7055. AUTHORIZATION OF APPROPRIATIONS. 

5 There are authorized to be appropriated such funds 

6 as may be necessary to carry out this subtitle. 

7 SEC. 7056. CONFORMING AMENDMENTS TO THE FEDERAL 

8 POWER ACT. 

9 (a) CONFLICT OF JURISDICTION.—Section 318 of the 

10 Federal Power Act (16 U.S.C. 825q) is repealed. 

11 (b) DEFINITIONS.—(1) Section 201(g) of the Federal 

12 Power Act (16 U.S.C. 824(g)) is amended by striking 

13 ‘‘1935’’ and inserting ‘‘2003’’. 

14 (2) Section 214 of the Federal Power Act (16 U.S.C. 

15 824m) is amended by striking ‘‘1935’’ and inserting 

16 ‘‘2003’’. 

17 Subtitle E—PURPA Amendments 

18 SEC. 7061. REAL-TIME PRICING AND TIME-OF-USE METER19 ING STANDARDS. 

20 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

21 the Public Utility Regulatory Policies Act of 1978 (16 

22 U.S.C. 2621(d)) is amended by adding at the end the fol23 lowing: 

24 ‘‘(11) REAL-TIME PRICING.—(A) Each electric 

25 utility shall, at the request of an electric consumer, 

26 provide electric service under a real-time rate sched-
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1 ule, under which the rate charged by the electric 

2 utility varies by the hour (or smaller time interval) 

3 according to changes in the electric utility’s whole4 sale power cost. The real-time pricing service shall 

5 enable the electric consumer to manage energy use 

6 and cost through real-time metering and commu7 nications technology.

8 ‘‘(B) For purposes of implementing this para9 graph, any reference contained in this section to the 

10 date of enactment of the Public Utility Regulatory 

11 Policies Act of 1978 shall be deemed to be a ref12 erence to the date of enactment of this paragraph. 

13 ‘‘(C) Notwithstanding subsections (b) and (c) of 

14 section 112, each State regulatory authority shall 

15 consider and make a determination concerning 

16 whether it is appropriate to implement the standard 

17 set out in subparagraph (A) not later than 1 year 

18 after the date of enactment of this paragraph. 

19 ‘‘(12) TIME-OF-USE METERING.—(A) Each elec20 tric utility shall, at the request of an electric con21 sumer, provide electric service under a time-of-use 

22 rate schedule which enables the electric consumer to 

23 manage energy use and cost through time-of-use me24 tering and technology. 
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1 ‘‘(B) For purposes of implementing this para2 graph, any reference contained in this section to the 

3 date of enactment of the Public Utility Regulatory 

4 Policies Act of 1978 shall be deemed to be a ref5 erence to the date of enactment of this paragraph. 

6 ‘‘(C) Notwithstanding subsections (b) and (c) of 

7 section 112, each State regulatory authority shall 

8 consider and make a determination concerning 

9 whether it is appropriate to implement the standards 

10 set out in subparagraph (A) not later than 1 year 

11 after the date of enactment of this paragraph.’’. 

12 (b) SPECIAL RULES.—Section 115 of the Public Util13 ity Regulatory Policies Act of 1978 (16 U.S.C. 2625) is 

14 amended by adding at the end the following: 

15 ‘‘(i) REAL-TIME PRICING.—In a State that permits 

16 third-party marketers to sell electric energy to retail elec17 tric consumers, the electric consumer shall be entitled to 

18 receive the same real-time metering and communication 

19 service as a direct retail electric consumer of the electric 

20 utility. 

21 ‘‘(j) TIME-OF-USE METERING.—In a State that per22 mits third-party marketers to sell electric energy to retail 

23 electric consumers, the electric consumer shall be entitled 

24 to receive the same time-of-use metering and communica-
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1 tion service as a direct retail electric consumer of the elec2 tric utility.’’. 

3 SEC. 7062. COGENERATION AND SMALL POWER PRODUC4 TION PURCHASE AND SALE REQUIREMENTS. 

5 (a) TERMINATION OF MANDATORY PURCHASE AND

6 SALE REQUIREMENTS.—Section 210 of the Public Utility 

7 Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 

8 amended by adding at the end the following: 

9 ‘‘(m) TERMINATION OF MANDATORY PURCHASE AND

10 SALE REQUIREMENTS.—

11 ‘‘(1) OBLIGATION TO PURCHASE.—After the 

12 date of enactment of this subsection, no electric util13 ity shall be required to enter into a new contract or 

14 obligation to purchase electric energy from a quali15 fying cogeneration facility or a qualifying small 

16 power production facility under this section if the 

17 Commission finds that— 

18 ‘‘(A) the qualifying cogeneration facility or 

19 qualifying small power production facility has 

20 access to 

21 ‘‘(i) independently administered, auc22 tion-based day ahead and real time whole23 sale markets for the sale of electric energy, 

24 and 
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1 ‘‘(ii) long-term wholesale markets for 

2 the sale of capacity and electric energy; 

3 ‘‘(B) the qualifying cogeneration facility or 

4 qualifying small power production facility has 

5 access to a competitive wholesale market for the 

6 sale of electric energy that provides such quali7 fying cogeneration facility or qualifying small 

8 power production facility with opportunities to 

9 sell electric energy that, at a minimum, are 

10 comparable to the opportunities provided by the 

11 markets, or some minimum combination there12 of, described in subparagraph (A); or 

13 ‘‘(C) the qualifying cogeneration facility 

14 does not meet criteria established by the Com15 mission pursuant to the rulemaking set forth in 

16 subparagraph (n) and has not filed with the 

17 Commission a notice of self-certification or an 

18 application for Commission certification under 

19 18 C.F.R. 292.207 prior to the date of enact20 ment of this subsection. 

21 ‘‘(2) COMMISSION REVIEW.—(A) Any electric 

22 utility may file an application with the Commission 

23 for relief from the mandatory purchase obligation 

24 pursuant to this subsection on a utility-wide basis. 

25 Such application shall set forth the reasons why 
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1 such relief is appropriate and describe how the con2 ditions set forth in subparagraphs (A) and (B) of 

3 paragraph (1) of this subsection have been met. 

4 ‘‘(B) After notice, including sufficient notice to 

5 potentially affected qualifying facilities, and an op6 portunity for comment, and within 90 days of the 

7 filing of an application under subparagraph (A), the 

8 Commission shall make a final determination as to 

9 whether the conditions set forth in subparagraphs 

10 (A) and (B) of paragraph (1) have been met. The 

11 Commission shall not be authorized to issue a tolling 

12 order regarding such application or otherwise delay 

13 a final decision regarding such application. 

14 ‘‘(3) REINSTATEMENT OF OBLIGATION TO PUR15 CHASE.—(A) At any time after the Commission 

16 makes a finding under paragraph (2) relieving an 

17 electric utility of its obligation to purchase electric 

18 energy, a qualifying cogeneration facility or a quali19 fying small power production facility may apply to 

20 the Commission for an order reinstating the electric 

21 utility’s obligation to purchase electric energy under 

22 this section. Such application shall set forth the rea23 sons why such relief is no longer appropriate and de24 scribe how the tests set forth in subparagraphs (A) 
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1 and (B) of paragraph (1) of this subsection are no 

2 longer met. 

3 ‘‘(B) After notice, including sufficient notice to 

4 potentially affected utilities, and opportunity for 

5 comment, and within 90 days of the filing of an ap6 plication under subparagraph (A), the Commission 

7 shall issue an order reinstating the electric utility’s 

8 obligation to purchase electric energy under this sec9 tion if the Commission finds that the condition in 

10 paragraph (1), which relieved the obligation to pur11 chase, is no longer met. The Commission shall not 

12 be authorized to issue a tolling order regarding such 

13 application or otherwise delay a final decision re14 garding such application. 

15 ‘‘(4) OBLIGATION TO SELL.—After the date of 

16 enactment of this subsection, no electric utility shall 

17 be required to enter into a new contract or obliga18 tion to sell electric energy to a qualifying cogenera19 tion facility or a qualifying small power production 

20 facility if—

21 ‘‘(A) competing retail electric suppliers are 

22 willing and able to provide electric energy to the 

23 qualifying cogeneration facility or qualifying 

24 small power production facility, and 
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1 ‘‘(B) the electric utility is not required by 

2 State law to sell electric energy in its service 

3 territory. 

4 ‘‘(5) NO EFFECT ON EXISTING RIGHTS AND

5 REMEDIES.—Nothing in this subsection affects the 

6 rights or remedies of any party under any contract 

7 or obligation, in effect or pending approval before 

8 the appropriate State regulatory authority or non9 regulated electric utility on the date of enactment of 

10 this subsection, to purchase electric energy or capac11 ity from or to sell electric energy or capacity to a 

12 facility under this Act (including the right to recover 

13 costs of purchasing electric energy or capacity). 

14 ‘‘(6) RECOVERY OF COSTS.—

15 ‘‘(A) REGULATION.—To ensure recovery 

16 by an electric utility that purchases electric en17 ergy or capacity from a qualifying facility pur18 suant to any legally enforceable obligation en19 tered into or imposed under this section of all 

20 prudently incurred costs associated with the 

21 purchases, the Commission shall issue and en22 force such regulations as may be required to en23 sure that the electric utility shall recover the 

24 prudently incurred costs associated with such 

25 purchases.
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1 ‘‘(B) ENFORCEMENT.—A regulation under 

2 subparagraph (A) shall be enforceable in ac3 cordance with the provisions of law applicable 

4 to enforcement of regulations under the Federal 

5 Power Act (16 U.S.C. 791a et seq.). 

6 ‘‘(n) RULEMAKING FOR NEW FACILITIES.—

7 ‘‘(1) IN GENERAL.—Not later than 180 days 

8 after the date of enactment of this subsection, the 

9 Commission shall issue a rule revising the criteria 

10 for qualifying cogeneration facilities in 18 C.F.R. 

11 292.205. In particular, the Commission shall evalu12 ate the rules regarding qualifying facility criteria 

13 and revise such rules, as necessary, to ensure—

14 ‘‘(A) that the thermal energy output of a 

15 new qualifying cogeneration facility is used in a 

16 productive and beneficial manner; 

17 ‘‘(B) the electrical and thermal output of 

18 the cogeneration facility is used predominantly 

19 for commercial or industrial processes and not 

20 intended predominantly for sale to an electric 

21 utility; and 

22 ‘‘(C) continuing progress in the develop23 ment of efficient electric energy generating 

24 technology. 
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1 ‘‘(2) APPLICABILITY.—Any revisions made to 

2 operating and efficiency standards shall be applica3 ble only to a cogeneration facility that—

4 ‘‘(A) was not a qualifying cogeneration fa5 cility, or 

6 ‘‘(B) had not filed with the Commission a 

7 notice of self-certification or an application for 

8 Commission certification under 18 C.F.R. 

9 292.207—

10 prior to the date of enactment of this subsection. 

11 ‘‘(3) DEFINITION.—For purposes of this sub12 section, the term ‘commercial processes’ includes 

13 uses of thermal and electric energy for educational 

14 and healthcare facilities. 

15 ‘‘(o) RULES FOR EXISTING FACILITIES.— Notwith16 standing rule revisions under subsection (n), the Commis17 sion’s rules in effect prior to the effective date of any re18 vised rules prescribed under subsection (n) shall continue 

19 to apply to any cogeneration facility or small power pro20 duction facility that—

21 ‘‘(1) was a qualifying cogeneration facility or a 

22 qualifying small power production facility, or 

23 ‘‘(2) had filed with the Commission a notice of 

24 self-certification or an application for Commission 

25 certification under 18 C.F.R. 292.207—
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1 prior to the date of enactment of subsections (m) and 

2 (n).’’. 

3 (b) ELIMINATION OF OWNERSHIP LIMITATIONS.—

4 (1) Section 3(17)(C) of the Federal Power Act (16 U.S.C. 

5 796(17)(C)) is amended to read as follows: 

6 ‘‘(C) ‘qualifying small power production fa7 cility’ means a small power production facility 

8 that the Commission determines, by rule, meets 

9 such requirements (including requirements re10 specting minimum size, fuel use, and fuel effi11 ciency) as the Commission may, by rule, pre12 scribe.’’. 

13 (2) Section 3(18)(B) of the Federal Power Act (16 

14 U.S.C. 796(18)(B)) is amended to read as follows: 

15 ‘‘(B) ‘qualifying cogeneration facility’ 

16 means a cogeneration facility that the Commis17 sion determines, by rule, meets such require18 ments (including requirements respecting min19 imum size, fuel use, and fuel efficiency) as the 

20 Commission may, by rule, prescribe.’’. 

21 SEC. 7063. SMART METERING. 

22 (a) IN GENERAL.—Section 111 (d) of the Public Util23 ities Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 

24 is amended by adding at the end the following: 
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1 ‘‘(11) (A) Not later than eighteen (18) months 

2 after the date of enactment of this paragraph, each 

3 electric utility shall offer each of its customer class4 es, and provide individual customers upon customer 

5 request, a time-based rate schedule under which the 

6 rate charged by the electric utility varies during dif7 ferent time periods and reflects the variance in the 

8 costs of generating and purchasing electricity at the 

9 wholesale level. The time-based rate schedule shall 

10 enable the electric consumer to manage energy use 

11 and cost through advanced metering and commu12 nications technology. 

13 ‘‘(B) The types of time-based rate schedules 

14 that may be offered under the schedule referred to 

15 in subparagraph (A) include, among others, each the 

16 following: 

17 ‘‘(i) Time-Of-Use pricing whereby elec18 tricity prices are set for a specific time period 

19 on an advance or forward basis, typically not 

20 changing more often than twice a year. Prices 

21 paid for energy consumed during these periods 

22 shall be pre-established and known to con23 sumers in advance of such consumption, allow24 ing them to vary their demand and usage in re25 sponse to such prices and manage their energy 
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1 costs by shifting usage to a lower cost period or 

2 reducing their consumption overall. 

3 ‘‘(ii) Critical Peak Pricing whereby time4 of-use prices are in effect except for certain 

5 peak days, when prices may reflect the costs of 

6 generating and purchasing electricity at the 

7 wholesale level and when consumers may receive 

8 additional discounts for reducing peak period 

9 energy consumption. 

10 ‘‘(iii) Real-Time pricing whereby electricity 

11 prices are set for a specific time period on an 

12 advanced or forward basis and may change as 

13 often as hourly. 

14 ‘‘(C) Each electric utility subject to subpara15 graph (A) shall provide each customer requesting a 

16 time-based rate with a time-based meter capable of 

17 enabling the utility and customer to offer and re18 ceive such rate, respectively. 

19 ‘‘(D) For purposes of implementing this para20 graph, any reference contained in this section to the 

21 date of enactment of the Public Utility Regulatory 

22 Policies Act of 1978 shall be deemed to be a ref23 erence to the date of enactment of this paragraph. 

24 ‘‘(E) In a State that permits third-party mar25 keters to sell electric energy to retail electric con-
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1 sumers, such consumers shall be entitled to receive 

2 that same time-based metering and communications 

3 device and service as a retail electric consumer of 

4 the electric utility. 

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

6 section 112, each State regulatory authority shall, 

7 not later than twelve (12) months after enactment 

8 of this paragraph conduct an investigation in accord9 ance with section 115(i) and issue a decision wheth10 er it is appropriate to implement the standards set 

11 out in subparagraphs (A) and (C).’’. 

12 (b) STATE INVESTIGATION OF DEMAND RESPONSE

13 AND TIME-BASED METERING.—

14 Section 115 of the Public Utilities Regulatory Poli15 cies Act of 1978 (16 U.S.C. 2625) is amended by adding 

16 the at the end the following: 

17 ‘‘(i) TIME-BASED METERING AND COMMUNICA18 TIONS.—(1) Each State regulatory authority shall, not 

19 later than twelve (12) months after enactment of this sub20 section, conduct an investigation and issue a decision 

21 whether or not it is appropriate for electric utilities to pro22 vide and install time-based meters and communications 

23 devices for each of their customers which enable such cus24 tomers to participate in time-based pricing rate schedules 

25 and other demand response programs.’’.
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1 (c) FEDERAL ASSISTANCE ON DEMAND RE2 SPONSE.—Section 132 (a) of the Public Utility Regulatory 

3 Policies Act of 1978 (16 U.S.C. 2642(a)) is amended by 

4 striking ‘‘and’’ at the end of paragraph (3), striking the 

5 period at the end of paragraph (4) and inserting ‘‘; and’’, 

6 and by adding the following at the end thereof: 

7 ‘‘(5) technologies, techniques and rate-making 

8 methods related to advanced metering and commu9 nications and the use of these technologies, tech10 niques and methods in demand response programs.’’. 

11 (d) FEDERAL GUIDANCE.—Section 132 of the Public 

12 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2643) 

13 is amended by adding the following at the end thereof: 

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

15 responsible for each of the following: 

16 ‘‘(1) Educating consumers on the availability, 

17 advantages and benefits of advanced metering and 

18 communications technologies including the funding 

19 of demonstration or pilot projects. 

20 ‘‘(2) Working with States, utilities, other energy 

21 providers and advanced metering and communica22 tions experts to identify and address barriers to the 

23 adoption of demand response programs, and 

24 ‘‘(3) Within 6 months of enactment, provide the 

25 Congress with a report that identifies and quantifies 
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1 the national benefits of demand response and pro2 vides policy recommendations as to how to achieve 

3 specific levels of such benefits by January 1, 2005.’’. 

4 (e) DEMAND RESPONSE AND REGIONAL COORDINA5 TION.—

6 (1) It is the policy of the United States to en7 courage States to coordinate, on a regional basis, 

8 State energy policies to provide reliable and afford9 able demand response services to the public. 

10 (2) TECHNICAL ASSISTANCE.—The Secretary of 

11 Energy shall provide technical assistance to States 

12 and regional organizations formed by two or more 

13 States to assist them in—

14 (A) identifying the areas with the greatest 

15 demand response potential; 

16 (B) identifying and resolving problems in 

17 transmission and distribution networks, includ18 ing through the use of demand response; and 

19 (C) developing plans and programs to use 

20 demand response to respond to peak demand or 

21 emergency needs. 

22 (3) REPORT.—The Federal Energy Regulatory 

23 Commission shall prepare and publish an annual re24 port, by appropriate region, that assesses demand 

25 response resources, including those available from all 
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1 consumer classes, and which identifies and reviews 

2 each of the following: 

3 (A) Saturation and penetration rate of ad4 vanced meters and communications tech5 nologies, devices and systems. 

6 (B) Existing demand response programs 

7 and time-based rate programs. 

8 (C) The annual resource contribution of 

9 demand resources, including the prior year and 

10 following years. 

11 (D) The potential for demand response as 

12 a quantifiable, reliable resource for regional 

13 planning purposes. 

14 (E) Steps taken to ensure that, in regional 

15 transmission planning and operations, that de16 mand resources are provided equitable treat17 ment as a quantifiable, reliable resource relative 

18 to the resource obligations of any load-serving 

19 entity, transmission provider or transmitting 

20 party. 

21 (f) COST RECOVERY OF DEMAND RESPONSE DE22 VICES.—It is the policy of the United States that time23 based pricing and other forms of demand response, where24 by electricity customers are provided with electricity price 

25 signals and the ability to benefit by responding to them, 
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1 shall be encouraged and the deployment of such tech2 nology and devices that enable electricity customers to 

3 participate in such pricing and demand response systems 

4 shall be facilitated. It is further the policy of the United 

5 States that the benefits of such demand response that ac6 crue to those not deploying such technology and devices, 

7 but who are part of the same regional electricity entity, 

8 shall be recognized. 

9 Subtitle F—Renewable Energy 

10 SEC. 7071. NET METERING. 

11 (a) ADOPTION OF STANDARD.—Section 111(d) of the 

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

13 2621(d)) is amended by adding at the end the following: 

14 ‘‘(13) NET METERING.—(A) Each electric util15 ity shall make available upon request net metering 

16 service to any electric consumer that the electric 

17 utility serves. 

18 ‘‘(B) For purposes of implementing this para19 graph, any reference contained in this section to the 

20 date of enactment of the Public Utility Regulatory 

21 Policies Act of 1978 shall be deemed to be a ref22 erence to the date of enactment of this paragraph. 

23 ‘‘(C) Notwithstanding subsections (b) and (c) of 

24 section 112, each State regulatory authority shall 

25 consider and make a determination concerning 
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1 whether it is appropriate to implement the standard 

2 set out in subparagraph (A) not later than 1 year 

3 after the date of enactment of this paragraph.’’. 

4 (b) SPECIAL RULES FOR NET METERING.—Section 

5 115 of the Public Utility Regulatory Policies Act of 1978 

6 (16 U.S.C. 2625) is amended by adding at the end the 

7 following: 

8 ‘‘(k) NET METERING.—In undertaking the consider9 ation and making the determination under section 111 

10 with respect to the standard concerning net metering es11 tablished by section 111(d)(13), the term ‘net metering 

12 service’ shall mean a service provided in accordance with 

13 the following standards: 

14 ‘‘(1) RATES AND CHARGES.—An electric util15 ity—

16 ‘‘(A) shall charge the owner or operator of 

17 an on-site generating facility rates and charges 

18 that are identical to those that would be 

19 charged other electric consumers of the electric 

20 utility in the same rate class; and 

21 ‘‘(B) shall not charge the owner or oper22 ator of an on-site generating facility any addi23 tional standby, capacity, interconnection, or 

24 other rate or charge.
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1 ‘‘(2) MEASUREMENT.—An electric utility that 

2 sells electric energy to the owner or operator of an 

3 on-site generating facility shall measure the quantity 

4 of electric energy produced by the on-site facility 

5 and the quantity of electric energy consumed by the 

6 owner or operator of an on-site generating facility 

7 during a billing period in accordance with normal 

8 metering practices. 

9 ‘‘(3) ELECTRIC ENERGY SUPPLIED EXCEEDING

10 ELECTRIC ENERGY GENERATED.—If the quantity of 

11 electric energy sold by the electric utility to an on12 site generating facility exceeds the quantity of elec13 tric energy supplied by the on-site generating facility 

14 to the electric utility during the billing period, the 

15 electric utility may bill the owner or operator for the 

16 net quantity of electric energy sold, in accordance 

17 with normal metering practices. 

18 ‘‘(4) ELECTRIC ENERGY GENERATED EXCEED19 ING ELECTRIC ENERGY SUPPLIED.—If the quantity 

20 of electric energy supplied by the on-site generating 

21 facility to the electric utility exceeds the quantity of 

22 electric energy sold by the electric utility to the on23 site generating facility during the billing period—

24 ‘‘(A) the electric utility may bill the owner 

25 or operator of the on-site generating facility for 
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1 the appropriate charges for the billing period in 

2 accordance with paragraph (2); and 

3 ‘‘(B) the owner or operator of the on-site 

4 generating facility shall be credited for the ex5 cess kilowatt-hours generated during the billing 

6 period, with the kilowatt-hour credit appearing 

7 on the bill for the following billing period. 

8 ‘‘(5) SAFETY AND PERFORMANCE STAND9 ARDS.—An eligible on-site generating facility and 

10 net metering system used by an electric consumer 

11 shall meet all applicable safety, performance, reli12 ability, and interconnection standards established by 

13 the National Electrical Code, the Institute of Elec14 trical and Electronics Engineers, and Underwriters 

15 Laboratories. 

16 ‘‘(6) ADDITIONAL CONTROL AND TESTING RE17 QUIREMENTS.—The Commission, after consultation 

18 with State regulatory authorities and nonregulated 

19 electric utilities and after notice and opportunity for 

20 comment, may adopt, by rule, additional control and 

21 testing requirements for on-site generating facilities 

22 and net metering systems that the Commission de23 termines are necessary to protect public safety and 

24 system reliability. 
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1 ‘‘(7) DEFINITIONS.—For purposes of this sub2 section: 

3 ‘‘(A) The term ‘eligible on-site generating 

4 facility’ means—

5 ‘‘(i) a facility on the site of a residen6 tial electric consumer with a maximum 

7 generating capacity of 10 kilowatts or less 

8 that is fueled by solar energy, wind energy, 

9 or fuel cells; or 

10 ‘‘(ii) a facility on the site of a com11 mercial electric consumer with a maximum 

12 generating capacity of 500 kilowatts or 

13 less that is fueled solely by a renewable en14 ergy resource, landfill gas, or a high effi15 ciency system. 

16 ‘‘(B) The term ‘renewable energy resource’ 

17 means solar, wind, biomass, or geothermal en18 ergy. 

19 ‘‘(C) The term ‘high efficiency system’ 

20 means service fuel cells or combined heat and 

21 power. 

22 ‘‘(D) The term ‘net metering’ means serv23 ice to an electric consumer under which electric 

24 energy generated by that electric consumer 

25 from an eligible on-site generating facility and 
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1 delivered to the local distribution facilities may 

2 be used to offset electric energy provided by the 

3 electric utility to the electric consumer during 

4 the applicable billing period.’’

5 SEC. 7072. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

6 (a) INCENTIVE PAYMENTS.—Section 1212(a) of the 

7 Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is 

8 amended by striking ‘‘and which satisfies’’ and all that 

9 follows through ‘‘Secretary shall establish.’’ and inserting 

10 ‘‘. If there are insufficient appropriations to make full pay11 ments for electric production from all qualified renewable 

12 energy facilities in any given year, the Secretary shall as13 sign 60 percent of appropriated funds for that year to fa14 cilities that use solar, wind, geothermal, or closed-loop 

15 (dedicated energy crops) biomass technologies to generate 

16 electricity, and assign the remaining 40 percent to other 

17 projects. The Secretary may, after transmitting to the 

18 Congress an explanation of the reasons therefor, alter the 

19 percentage requirements of the preceding sentence.’’. 

20 (b) QUALIFIED RENEWABLE ENERGY FACILITY.—

21 Section 1212(b) of the Energy Policy Act of 1992 (42 

22 U.S.C. 13317(b)) is amended—

23 (1) by striking ‘‘a State or any political’’ and 

24 all that follows through ‘‘nonprofit electrical cooper25 ative’’ and inserting ‘‘a not-for-profit electric cooper-
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1 ative, a public utility described in section 115 of the 

2 Internal Revenue Code of 1986, a State, Common3 wealth, territory, or possession of the United States 

4 or the District of Columbia, or a political subdivision 

5 thereof, or an Indian tribal government of subdivi6 sion thereof,’’; and 

7 (2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio8 mass,’’. 

9 (c) ELIGIBILITY WINDOW.—Section 1212(c) of the 

10 Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is 

11 amended by striking ‘‘during the 10-fiscal year period be12 ginning with the first full fiscal year occurring after the 

13 enactment of this section’’ and inserting ‘‘after October 

14 1, 2003, and before October 1, 2013’’. 

15 (d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of 

16 the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) 

17 is amended by inserting ‘‘landfill gas,’’ after ‘‘wind, bio18 mass,’’. 

19 (e) SUNSET.—Section 1212(f) of the Energy Policy 

20 Act of 1992 (42 U.S.C. 13317(f)) is amended by striking 

21 ‘‘the expiration of’’ and all that follows through ‘‘of this 

22 section’’ and inserting ‘‘September 30, 2023’’. 

23 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

24 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 

25 13317(g)) is amended to read as follows:
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1 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

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

3 there are authorized to be appropriated such sums 

4 as may be necessary to carry out this section for fis5 cal years 2003 through 2023. 

6 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made 

7 available under paragraph (1) shall remain available 

8 until expended.’’. 

9 SEC. 7073. RENEWABLE ENERGY ON FEDERAL LANDS. 

10 (a) REPORT TO CONGRESS.—Within 24 months after 

11 the date of enactment of this section, the Secretary of the 

12 Interior, in cooperation with the Secretary of Agriculture, 

13 shall develop and report to the Congress recommendations 

14 on opportunities to develop renewable energy on public 

15 lands under the jurisdiction of the Secretary of the Inte16 rior and National Forest System lands under the jurisdic17 tion of the Secretary of Agriculture. The report shall in18 clude—

19 (1) 5-year plans developed by the Secretary of 

20 the Interior and the Secretary of Agriculture, re21 spectively, for encouraging the development of wind 

22 and solar energy consistent with applicable law and 

23 management plans; and 

24 (2) an analysis of—
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1 (A) the use of rights-of-ways, leases, or 

2 other methods to develop wind and solar energy 

3 on such lands; 

4 (B) the anticipated benefits of grants, 

5 loans, tax credits, or other provisions to pro6 mote wind and solar energy development on 

7 such lands; and 

8 (C) any issues that the Secretary of the 

9 Interior or the Secretary of Agriculture have 

10 encountered in managing wind or solar energy 

11 projects on such lands, or believe are likely to 

12 arise in relation to the development of wind or 

13 solar energy on such lands; 

14 (3) a list, developed in consultation with the 

15 Secretary of Energy and the Secretary of Defense, 

16 of lands under the jurisdiction of the Department of 

17 Energy or Defense that would be suitable for devel18 opment for wind or solar energy, and any rec19 ommended statutory and regulatory mechanisms for 

20 such development; and 

21 (4) any recommendations pertaining to the 

22 issues addressed in the report. 

23 (b) NATIONAL ACADEMY OF SCIENCES STUDY.—

24 (1) IN GENERAL.—Within 90 days after the 

25 date of the enactment of this Act, the Secretary of 
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1 the Interior shall contract with the National Acad2 emy of Sciences to—

3 (A) study the potential for the development 

4 of wind, solar, and ocean energy on the Outer 

5 Continental Shelf; 

6 (B) assess existing Federal authorities for 

7 the development of such resources; and 

8 (C) recommend statutory and regulatory 

9 mechanisms for such development. 

10 (2) TRANSMITTAL OF RESULTS.—The results of 

11 the study shall be transmitted to the Congress with12 in 24 months after the date of the enactment of this 

13 Act.

14 SEC. 7074. ASSESSMENT OF RENEWABLE ENERGY RE15 SOURCES. 

16 (a) RESOURCE ASSESSMENT.—Not later than 3 

17 months after the date of enactment of this Act, and each 

18 year thereafter, the Secretary of Energy shall review the 

19 available assessments of renewable energy resources avail20 able within the United States, including solar, wind, bio21 mass, ocean, geothermal, and hydroelectric energy re22 sources, and undertake new assessments as necessary, 

23 taking into account changes in market conditions, avail24 able technologies, and other relevant factors. 
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1 (b) CONTENTS OF REPORTS.—Not later than 1 year 

2 after the date of enactment of this Act, and each year 

3 thereafter, the Secretary shall publish a report based on 

4 the assessment under subsection (a). The report shall con5 tain—

6 (1) a detailed inventory describing the available 

7 amount and characteristics of the renewable energy 

8 resources; and 

9 (2) such other information as the Secretary be10 lieves would be useful in developing such renewable 

11 energy resources, including descriptions of sur12 rounding terrain, population and load centers, near13 by energy infrastructure, location of energy and 

14 water resources, and available estimates of the costs 

15 needed to develop each resource, together with an 

16 identification of any barriers to providing adequate 

17 transmission for remote sources of renewable energy 

18 resources to current and emerging markets, rec19 ommendations for removing or addressing such bar20 riers, and ways to provide access to the grid that do 

21 not unfairly disadvantage renewable or other energy 

22 producers. 
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1 Subtitle G—Market Transparency, 

2 Round Trip Trading Prohibi3 tion, and Enforcement 

4 SEC. 7081. MARKET TRANSPARENCY RULES. 

5 Part II of the Federal Power Act is amended by add6 ing the following new section at the end thereof: 

7 ‘‘SEC. 218. MARKET TRANSPARENCY RULES. 

8 ‘‘(a) COMMISSION RULES.—Not later than 180 days 

9 after the date of enactment of this section, the Commis10 sion shall issue rules establishing an electronic information 

11 system to provide the Commission and the public with ac12 cess to such information as is necessary or appropriate 

13 to facilitate price transparency and participation in mar14 kets subject to the Commission’s jurisdiction. Such sys15 tems shall provide information about the availability and 

16 market price of sales of electric energy at wholesale in 

17 interstate commerce and transmission of electric energy 

18 in interstate commerce to the Commission, State commis19 sions, buyers and sellers of wholesale electric energy, users 

20 of transmission services, and the public on a timely basis. 

21 The Commission shall have authority to obtain such infor22 mation from any person, and any entity described in sec23 tion 201(f), who sells electric energy at wholesale in inter24 state commerce or provides transmission services in inter25 state commerce.
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1 ‘‘(b) EXEMPTIONS.—The Commission shall exempt 

2 from disclosure information it determines would, if dis3 closed, (1) be detrimental to the operation of an effective 

4 market; or (2) jeopardize system security. This section 

5 shall not apply to an entity described in section 

6 212(k)(2)(B) with respect to transactions for the purchase 

7 or sale of wholesale electric energy and transmission serv8 ices within the area described in section 212(k)(2)(A). 

9 SEC. 7082. PROHIBITION ON ROUND TRIP TRADING. 

10 Part II of the Federal Power Act is amended by add11 ing the following new section at the end thereof: 

12 ‘‘SEC. 219. PROHIBITION ON ROUND TRIP TRADING. 

13 ‘‘(a) PROHIBITION.—It shall be a violation of this Act 

14 for any person, and any entity described in section 201(f), 

15 willfully and knowingly to enter into any contract or other 

16 arrangement to execute a round-trip trade for the pur17 chase or sale of electric energy at wholesale. 

18 ‘‘(b) DEFINITION OF ROUND-TRIP TRADE.—For the 

19 purposes of this section, the term ‘‘round-trip trade’’ 

20 means a transaction, or combination of transactions, in 

21 which a person or other entity—

22 ‘‘(1) enters into a contract or other arrange23 ment to purchase from, or sell to, any other person 

24 or other entity electric energy at wholesale; 
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1 ‘‘(2) simultaneously with entering into the con2 tract described in paragraph (1), arranges a finan3 cially offsetting trade with such other person or enti4 ty for the same quantity of electric energy so that, 

5 collectively, the purchase and sale transactions in 

6 themselves result in no financial gain or loss; and 

7 ‘‘(3) has a specific intent to distort reported 

8 revenues, trading volumes, or prices.’’. 

9 SEC. 7083. CONFORMING CHANGES. 

10 Sections 201(b)(2) and 201(e) of the Federal Power 

11 Act are each amended by striking ‘‘or 212’’ and inserting 

12 ‘‘212, 215, 216, 217, 218, or 219’’. Section 201(b)(2) of 

13 such Act is further amended by striking ‘‘and 212’’ and 

14 inserting ‘‘, 212, 215, 216, 217, 218, and 219’’. 

15 SEC. 7084. ENFORCEMENT. 

16 (a) COMPLAINTS.—Section 306 of the Federal Power 

17 Act (16 U.S.C. 825e) is amended by—

18 (1) inserting ‘‘electric utility,’’ after ‘‘Any per19 son,’’; and 

20 (2) inserting ‘‘, transmitting utility,’’ after ‘‘li21 censee’’ each place it appears. 

22 (b) REVIEW OF COMMISSION ORDERS.—Section 

23 313(a) of the Federal Power Act (16 U.S.C. 8251) is 

24 amended by inserting ‘‘electric utility,’’ after ‘‘person,’’ in 

25 the first place it appears and by striking ‘‘any person un-
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1 less such person’’ and inserting ‘‘any entity unless such 

2 entity’’. 

3 (c) CRIMINAL PENALTIES.—Section 316 of the Fed4 eral Power Act (16 U.S.C. 825o) is amended—

5 (1) in subsection (a), by striking ‘‘$5,000’’ and 

6 inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 

7 and inserting ‘‘five years’’; 

8 (2) in subsection (b), by striking ‘‘$500’’ and 

9 inserting ‘‘$25,000’’; and 

10 (3) by striking subsection (c). 

11 (d) CIVIL PENALTIES.—Section 316A of the Federal 

12 Power Act (16 U.S.C. 825–1) is amended—

13 (1) in subsections (a) and (b), by striking ‘‘sec14 tion 211, 212, 213, or 214’’ each place it appears 

15 and inserting ‘‘Part II’’; and 

16 (2) in subsection (b), by striking ‘‘$10,000’’ 

17 and inserting ‘‘$1,000,000’’. 

18 Subtitle H—Consumer Protections 

19 SEC. 7091. REFUND EFFECTIVE DATE. 

20 Section 206(b) of the Federal Power Act (16 U.S.C. 

21 824e(b)) is amended by—

22 (1) striking ‘‘the date 60 days after the filing 

23 of such complaint nor later than 5 months after the 

24 expiration of such 60-day period’’ in the second sen25 tence and inserting ‘‘the date of the filing of such 
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1 complaint nor later than 5 months after the filing of 

2 such complaint’’; 

3 (2) striking ‘‘60 days after’’ in the third sen4 tence and inserting ‘‘of’’; 

5 (3) striking ‘‘expiration of such 60-day period’’ 

6 in the third sentence and inserting ‘‘publication 

7 date’’; and 

8 (4) in the fifth sentence after ‘‘rendered by the’’ 

9 insert ‘‘date 60 days after the’’. 

10 SEC. 7092. JURISDICTION OVER INTERSTATE SALES. 

11 (a) SCOPE OF AUTHORITY.—Section 206 of the Fed12 eral Power Act (16 U.S.C. 824e) is amended by adding 

13 the following new subsection at the end thereof: 

14 ‘‘(f)(1) If an entity that is not a public utility (includ15 ing an entity referred to in section 201(f)) voluntarily 

16 makes a spot market sale of electric energy and such sale 

17 violates Commission rules in effect at the time of such 

18 sale, such entity shall be subject to the Commission’s re19 fund authority under this section with respect to such vio20 lation. 

21 ‘‘(2) This section shall not apply to any entity that 

22 is either—

23 ‘‘(A) an entity described in section 201(f); or 

24 ‘‘(B) a rural electric cooperative 
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1 that does not sell more than 4,000,000 megawatt hours 

2 of electricity per year. 

3 ‘‘(3) For purposes of this subsection, the term ‘spot 

4 market sale’ means an agreement for the sale of electric 

5 energy at wholesale in interstate commerce that is for 24 

6 hours or less and that is entered into the day of, or the 

7 day prior to, delivery.’’. 

8 (b) CONFORMING AMENDMENTS.—(1) Section 206 of 

9 the Federal Power Act (16 U.S.C. 824e) is amended as 

10 follows: 

11 (A) In subsection (b), in the seventh sentence, 

12 by striking ‘‘the public utility to make’’. 

13 (B) In the first sentence of subsection (a), by 

14 striking ‘‘hearing had’’ and inserting ‘‘hearing held’’. 

15 (2) Section 201(b)(2) of such Act (16 U.S.C. 

16 824(b)(2)) is amended as follows: 

17 (A) In the first sentence by striking ‘‘section 

18 210’’ and inserting ‘‘section 206(f), 210,’’. 

19 (B) In the second sentence by striking ‘‘section 

20 210’’ and inserting ‘‘206(f), 210,’’. 

21 (3) Section 201(e) of the Federal Power Act is 

22 amended by striking ‘‘section 210’’ and inserting ‘‘section 

23 206(f), 210’’.
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1 (c) UNIFORM INVESTIGATION AUTHORITY.—Section 

2 307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is 

3 amended as follows: 

4 (1) By inserting ‘‘, electric utility, transmitting 

5 utility, or other entity’’ after ‘‘person’’ each time it 

6 appears. 

7 (2) By striking the period at the end of the 

8 first sentence and inserting the following: ‘‘or in ob9 taining information about the sale of electric energy 

10 at wholesale in interstate commerce and the trans11 mission of electric energy in interstate commerce.’’. 

12 (d) SANCTITY OF CONTRACT.—(1) The Federal En13 ergy Regulatory Commission shall have no authority to ab14 rogate or modify any provision of a contract, except upon 

15 a finding, after notice and opportunity for a hearing, that 

16 such action is necessary to protect the public interest, un17 less such contract expressly provides for a different stand18 ard of review. 

19 (2) For purposes of this subsection, a contract is any 

20 agreement, in effect and subject to the jurisdiction of the 

21 Commission—

22 (A) under section 4 of the Natural Gas Act or 

23 section 205 of the Federal Power Act; and 

24 (B) that is not for sales in an organized ex25 change or auction spot market. 
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1 (3) This subsection shall not apply to any contract 

2 executed before the date of enactment of this section un3 less such contract is an interconnection agreement, nor 

4 shall this subsection affect the outcome in any proceeding 

5 regarding any contract for sales of electric power executed 

6 before the date of enactment of this section. 

7 SEC. 7093. CONSUMER PRIVACY. 

8 (a) IN GENERAL.—The Federal Trade Commission 

9 shall issue rules protecting the privacy of electric con10 sumers from the disclosure of consumer information ob11 tained in connection with the sale or delivery of electric 

12 energy to electric consumers. The Federal Trade Commis13 sion shall proceed in accordance with section 553 of title 

14 5, United States Code, when prescribing a rule under this 

15 section. 

16 (b) STATE AUTHORITY.—If the Federal Trade Com17 mission determines that a State’s regulations provide 

18 equivalent or greater protection than the provisions of this 

19 section, such State regulations shall apply in that State 

20 in lieu of the regulations issued by the Commission under 

21 this section. 

22 SEC. 7094. UNFAIR TRADE PRACTICES. 

23 (a) SLAMMING.—The Federal Trade Commission 

24 shall issue rules prohibiting the change of selection of an 

25 electric utility except with the informed consent of the 
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1 electric consumer or if approved by the appropriate State 

2 regulatory authority. 

3 (b) CRAMMING.—The Federal Trade Commission 

4 shall issue rules prohibiting the sale of goods and services 

5 to an electric consumer unless expressly authorized by law 

6 or the electric consumer. 

7 (c) RULEMAKING.—The Federal Trade Commission 

8 shall proceed in accordance with section 553 of title 5, 

9 United States Code, when prescribing a rule under this 

10 section. 

11 (d) STATE AUTHORITY.—If the Federal Trade Com12 mission determines that a State’s regulations provide 

13 equivalent or greater protection than the provisions of this 

14 section, such State regulations shall apply in that State 

15 in lieu of the regulations issued by the Commission under 

16 this section. 

17 Subtitle I—Merger Review Reform 

18 and Accountability 

19 SEC. 7101. MERGER REVIEW REFORM AND ACCOUNT20 ABILITY. 

21 (a) MERGER REVIEW REFORM.—Within 180 days 

22 after the date of enactment of this act, the Secretary of 

23 Energy, in consultation with the Federal Energy Regu24 latory Commission and the Department of Justice, shall 

25 prepare, and transmit to the Committee on Energy and 
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1 Commerce of the House of Representatives and the Com2 mittee on Energy and Natural Resources of the Senate 

3 each of the following: 

4 (1) A study of the extent to which the authori5 ties vested in the Federal Energy Regulatory Com6 mission under section 203 of the Federal Power Act 

7 are duplicative of authorities vested in—

8 (A) other agencies of Federal and State 

9 government; and 

10 (B) the Federal Energy Regulatory Com11 mission, including under sections 205 and 206 

12 of the Federal Power Act. 

13 (2) Recommendations on reforms to the Fed14 eral Power Act that would eliminate any unneces15 sary duplication in the exercise of regulatory author16 ity or unnecessary delays in the approval (or dis17 approval) of applications for the sale, lease, or other 

18 disposition of public utility facilities. 

19 (b) MERGER REVIEW ACCOUNTABILITY.—Not later 

20 than 1 year after the date of enactment of this Act and 

21 annually thereafter, with respect to all orders issued with22 in the preceding year that impose a condition on a sale, 

23 lease, or other disposition of public utility facilities under 

24 section 203(b) of the Federal Power Act, the Federal En25 ergy Regulatory Commission shall transmit a report to the 
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1 Committee on Energy and Commerce of the House of 

2 Representatives and the Committee on Energy and Nat3 ural Resources of the Senate explaining each of the fol4 lowing: 

5 (1) The condition imposed. 

6 (2) Whether the Commission could have im7 posed such condition by exercising its authority 

8 under any provision of the Federal Power Act other 

9 than under section 203(b). 

10 (3) If the Commission could not have imposed 

11 such condition other than under section 203(b), why 

12 the Commission determined that such condition was 

13 consistent with the public interest.

14 Subtitle J—Study of Economic 

15 Dispatch 

16 SEC. 7111. STUDY ON THE BENEFITS OF ECONOMIC DIS17 PATCH. 

18 (a) STUDY.—The Secretary of Energy, in coordina19 tion and consultation with the States, shall conduct a 

20 study on—

21 (1) the procedures currently used by electric 

22 utilities to perform economic dispatch, 

23 (2) identifying possible revisions to those proce24 dures to improve the ability of nonutility generation
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1 resources to offer their output for sale for the pur2 pose of inclusion in economic dispatch; and 

3 (3) the potential benefits to residential, com4 mercial, and industrial electricity consumers nation5 ally and in each state if economic dispatch proce6 dures were revised to improve the ability of non7 utility generation resources to offer their output for 

8 inclusion in economic dispatch. 

9 (b) DEFINITION.—The term ‘‘economic dispatch’’ 

10 when used in this section means the operation of genera11 tion facilities to produce energy at the lowest cost to reli12 ably serve consumers, recognizing any operational limits 

13 of generation and transmission facilities. 

14 (c) REPORT TO CONGRESS AND THE STATES.—Not 

15 later than 90 days after the date of enactment of this Act, 

16 and on a yearly basis following, the Secretary of Energy 

17 shall submit a report to the Congress and the States on 

18 the results of the study conducted under subsection (a), 

19 including recommendations to the Congress and the States 

20 for any suggested legislative or regulatory changes.

21 TITLE VIII—COAL

22 SEC. 8001. AUTHORIZATION OF APPROPRIATIONS. 

23 (a) CLEAN COAL POWER INITIATIVE.—Except as 

24 provided in subsection (b), there are authorized to be ap25 propriated to the Secretary to carry out the activities au-
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1 thorized by this title $200,000,000 for each of the fiscal 

2 years 2005 through 2013, to remain available until ex3 pended. 

4 (b) LIMIT ON USE OF FUNDS.—The Secretary shall 

5 transmit to the Congress the report required by this sub6 section not later than September 30, 2004. Notwith7 standing subsection (a), no funds may be used to carry 

8 out the activities authorized by this title after September 

9 30, 2004, unless the report has been transmitted. The re10 port shall include, with respect to subsection (a), a 10-

11 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 

19 each coal and related technology that will be pur20 sued; and 

21 (4) a detailed description of how the program 

22 will avoid problems enumerated in General Account23 ing Office reports on the Clean Coal Technology 

24 Program, including problems that have resulted in 
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1 unspent funds and projects that failed either finan2 cially or scientifically. 

3 (c) APPLICABILITY.—Subsection (b) shall not apply 

4 to any project begun before September 30, 2004. 

5 SEC. 8002. PROJECT CRITERIA. 

6 (a) IN GENERAL.—The Secretary shall not provide 

7 funding under this title for any project that does not ad8 vance efficiency, environmental performance, and cost 

9 competitiveness well beyond the level of technologies that 

10 on a full scale are in operation or have been demonstrated 

11 as of the date of the enactment 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 8001(a), the Secretary 

16 shall ensure that up to 80 percent of the funds are 

17 used only for coal-based gasification technologies, in18 cluding gasification combined cycle, gasification fuel 

19 cells, gasification coproduction and hybrid gasifi20 cation/combustion. 

21 (B) The Secretary shall set technical milestones 

22 specifying emissions levels for projects funded under 

23 this paragraph. The milestones shall be designed to 

24 increasingly restrict emission levels through the life 
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1 of the program. The milestones shall be designed to 

2 achieve by 2020 coal gasification projects able—

3 (i) to remove 99 percent of sulfur dioxide; 

4 (ii) to emit no more than .05 lbs of NOx 

5 per 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 (2) OTHER PROJECTS.—For projects not de16 scribed in paragraph (1), the Secretary shall set 

17 technical milestones specifying emissions levels. The 

18 milestones shall be designed to increasingly restrict 

19 emission levels through the life of the program. The 

20 milestones shall be designed to achieve by 2010 

21 projects able—

22 (A) to remove 97 percent of sulfur dioxide; 

23 (B) to emit no more than .08 lbs of NOx 

24 per million BTU; 
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1 (C) to achieve substantial reductions in 

2 mercury emissions; and 

3 (D) except as provided in paragraph (4), 

4 to achieve a thermal efficiency of—

5 (i) 45 percent for coal of more than 

6 9,000 Btu; 

7 (ii) 44 percent for coal of 7,000 to 

8 9,000 Btu; and 

9 (iii) 42 percent for coal of less than 

10 7,000 Btu. 

11 (3) CONSULTATION.—Before setting the tech12 nical milestones under paragraphs (1)(B) and (2), 

13 the Secretary shall consult with the Administrator of 

14 the Environmental Protection Agency and interested 

15 entities, including coal producers, industries using 

16 coal, organizations to promote coal or advanced coal 

17 technologies, environmental organizations, and orga18 nizations representing workers. 

19 (4) EXISTING UNITS.—In the case of projects 

20 at existing units, in lieu of the thermal efficiency re21 quirements set forth in paragraph (1)(B)(iv) and 

22 (2)(D), the projects shall be designed to achieve an 

23 overall thermal design efficiency improvement com24 pared to the efficiency of the unit as operated, of not 

25 less than—
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1 (A) 7 percent for coal of more than 9,000 

2 Btu; 

3 (B) 6 percent for coal of 7,000 to 9,000 

4 Btu; or 

5 (C) 4 percent for coal of less than 7,000 

6 Btu. 

7 (5) PERMITTED USES.—In allocating funds 

8 made available under section 8001, the Secretary 

9 may fund projects that include, as part of the 

10 project, the separation and capture of carbon diox11 ide. 

12 (c) FINANCIAL CRITERIA.—The Secretary shall not 

13 provide a funding award under this title unless the recipi14 ent has documented to the satisfaction of the Secretary 

15 that—

16 (1) the award recipient is financially viable 

17 without the receipt of additional Federal funding; 

18 (2) the recipient will provide sufficient informa19 tion to the Secretary for the Secretary to ensure 

20 that the award funds are spent efficiently and effec21 tively; and 

22 (3) a market exists for the technology being 

23 demonstrated or applied, as evidenced by statements 

24 of interest in writing from potential purchasers of 

25 the technology. 
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1 (d) FINANCIAL ASSISTANCE.—The Secretary shall 

2 provide financial assistance to projects that meet the re3 quirements of subsections (a), (b), and (c) and are likely 

4 to—

5 (1) achieve overall cost reductions in the utiliza6 tion of coal to generate useful forms of energy; 

7 (2) improve the competitiveness of coal among 

8 various forms of energy in order to maintain a diver9 sity of fuel choices in the United States to meet elec10 tricity generation requirements; and 

11 (3) demonstrate methods and equipment that 

12 are applicable to 25 percent of the electricity gener13 ating facilities, utilizing different types of coal, that 

14 use coal as the primary feedstock as of the date of 

15 the enactment of this Act. 

16 (e) FEDERAL SHARE.—The Federal share of the cost 

17 of a project funded by the Secretary under this title shall 

18 not exceed 50 percent. 

19 (f) APPLICABILITY.—No technology, or level of emis20 sion reduction, shall be treated as adequately dem21 onstrated for purposes of section 111 of the Clean Air Act, 

22 achievable for purposes of section 169 of that Act, or 

23 achievable in practice for purposes of section 171 of that 

24 Act solely by reason of the use of such technology, or the 
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1 achievement of such emission reduction, by one or more 

2 facilities receiving assistance under this title. 

3 SEC. 8003. REPORT. 

4 Not later than 1 year after the date of the enactment 

5 of this Act, and once every 2 years thereafter for the fol6 lowing 8 years, the Secretary, in consultation with other 

7 appropriate Federal agencies, shall transmit to the Con8 gress a report describing—

9 (1) the technical milestones set forth in section 

10 8002 and how those milestones ensure progress to11 ward meeting the requirements of subsections 

12 (b)(1)(B) and (b)(2) of section 8002; and 

13 (2) the status of projects funded under this 

14 title. 

15 SEC. 8004. CLEAN COAL CENTERS OF EXCELLENCE. 

16 As part of the program authorized in section 8001, 

17 the Secretary shall award competitive, merit-based grants 

18 to universities for the establishment of Centers of Excel19 lence for Energy Systems of the Future. The Secretary 

20 shall provide grants to universities that can show the 

21 greatest potential for advancing new clean coal tech22 nologies.
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1 TITLE IX—MOTOR FUELS 

2 Subtitle A—General Provisions 

3 SEC. 9101. RENEWABLE CONTENT OF MOTOR VEHICLE 

4 FUEL. 

5 (a) IN GENERAL.—Section 211 of the Clean Air Act 

6 (42 U.S.C. 7545) is amended—

7 (1) by redesignating subsection (o) as sub8 section (q); and 

9 (2) by inserting after subsection (n) the fol10 lowing: 

11 ‘‘(o) RENEWABLE FUEL PROGRAM.—

12 ‘‘(1) DEFINITIONS.—In this section: 

13 ‘‘(A) CELLULOSIC BIOMASS ETHANOL.—

14 The term ‘cellulosic biomass ethanol’ means 

15 ethanol derived from any lignocellulosic or 

16 hemicellulosic matter that is available on a re17 newable or recurring basis, including—

18 ‘‘(i) dedicated energy crops and trees; 

19 ‘‘(ii) wood and wood residues; 

20 ‘‘(iii) plants; 

21 ‘‘(iv) grasses; 

22 ‘‘(v) agricultural residues; 

23 ‘‘(vi) fibers; 

24 ‘‘(vii) animal wastes and other waste 

25 materials; and 
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1 ‘‘(viii) municipal solid waste. 

2 ‘‘(B) RENEWABLE FUEL.—

3 ‘‘(i) IN GENERAL.—The term ‘renew4 able fuel’ means motor vehicle fuel that—

5 ‘‘(I)(aa) is produced from grain, 

6 starch, oilseeds, or other biomass; or 

7 ‘‘(bb) is natural gas produced 

8 from a biogas source, including a 

9 landfill, sewage waste treatment plant, 

10 feedlot, or other place where decaying 

11 organic material is found; and 

12 ‘‘(II) is used to replace or reduce 

13 the quantity of fossil fuel present in a 

14 fuel mixture used to operate a motor 

15 vehicle. 

16 ‘‘(ii) INCLUSION.—The term ‘renew17 able fuel’ includes cellulosic biomass eth18 anol and biodiesel (as defined in section 

19 312(f) of the Energy Policy Act of 1992 

20 (42 U.S.C. 13220(f)) and any blending 

21 components derived from renewable fuel 

22 (provided that only the renewable fuel por23 tion of any such blending component shall 

24 be considered part of the applicable volume
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1 under the renewable fuel program estab2 lished by this subsection). 

3 ‘‘(C) SMALL REFINERY.—The term ‘small 

4 refinery’ means a refinery for which average ag5 gregate daily crude oil throughput for the cal6 endar year (as determined by dividing the ag7 gregate throughput for the calendar year by the 

8 number of days in the calendar year) does not 

9 exceed 75,000 barrels. 

10 ‘‘(2) RENEWABLE FUEL PROGRAM.—

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

12 from enactment of this provision, the Adminis13 trator shall promulgate regulations ensuring 

14 that gasoline sold or dispensed to consumers in 

15 the contiguous United States, on an annual av16 erage basis, contains the applicable volume of 

17 renewable fuel as specified in subparagraph 

18 (B). Regardless of the date of promulgation, 

19 such regulations shall contain compliance provi20 sions for refiners, blenders, and importers, as 

21 appropriate, to ensure that the requirements of 

22 this section are met, but shall not restrict where 

23 renewables can be used, or impose any per-gal24 lon obligation for the use of renewables. If the 

25 Administrator does not promulgate such regula-
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1 tions, the applicable percentage, on a volume 

2 percentage of gasoline basis, shall be 1.62 in 

3 2005. 

4 ‘‘(B) APPLICABLE VOLUME.—

5 ‘‘(i) CALENDAR YEARS 2005 THROUGH

6 2015.—For the purpose of subparagraph 

7 (A), the applicable volume for any of cal8 endar years 2005 through 2015 shall be 

9 determined in accordance with the fol10 lowing table:

Applicable volume of renewable fuel 

‘‘Calendar year: (In billions of gallons) 

2005 ..................................................................................... 2.7

2006 ..................................................................................... 2.7

2007 ..................................................................................... 2.9

2008 ..................................................................................... 2.9

2009 ..................................................................................... 3.4

2010 ..................................................................................... 3.4

2011 ..................................................................................... 3.4

2012 ..................................................................................... 4.2

2013 ..................................................................................... 4.2

2014 ..................................................................................... 4.2

2015 ..................................................................................... 5.0.

11 ‘‘(ii) CALENDAR YEAR 2016 AND

12 THEREAFTER.—For the purpose of sub13 paragraph (A), the applicable volume for 

14 calendar year 2016 and each calendar year 

15 thereafter shall be equal to the product ob16 tained by multiplying—

17 ‘‘(I) the number of gallons of 

18 gasoline that the Administrator esti-
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1 mates will be sold or introduced into 

2 commerce in the calendar year; and 

3 ‘‘(II) the ratio that—

4 ‘‘(aa) 5.0 billion gallons of 

5 renewable fuels; bears to 

6 ‘‘(bb) the number of gallons 

7 of gasoline sold or introduced 

8 into commerce in calendar year 

9 2015. 

10 ‘‘(3) APPLICABLE PERCENTAGES.—Not later 

11 than October 31 of each calendar year after 2002, 

12 the Administrator of the Energy Information Ad13 ministration shall provide the Administrator an esti14 mate of the volumes of gasoline sales in the United 

15 States for the coming calendar year. Based on such 

16 estimates, the Administrator shall, by November 30 

17 of each calendar year after 2003, determine and 

18 publish in the Federal Register, the renewable fuel 

19 obligation, on a volume percentage of gasoline basis, 

20 applicable to refiners, blenders, and importers, as 

21 appropriate, for the coming calendar year, to ensure 

22 that the requirements of paragraph (2) are met. For 

23 each calendar year, the Administrator shall establish 

24 a single applicable percentage that applies to all par25 ties, and make provision to avoid redundant obliga-
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1 tions. In determining the applicable percentages, the 

2 Administrator shall make adjustments to account for 

3 the use of renewable fuels by exempt small refineries 

4 during the previous year. 

5 ‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the 

6 purpose of paragraph (2), 1 gallon of cellulosic bio7 mass ethanol shall be considered to be the equivalent 

8 of 1.5 gallon of renewable fuel. 

9 ‘‘(5) CREDIT PROGRAM.—

10 ‘‘(A) IN GENERAL.—The regulations pro11 mulgated to carry out this subsection shall pro12 vide for the generation of an appropriate 

13 amount of credits by any person that refines, 

14 blends, or imports gasoline that contains a 

15 quantity of renewable fuel that is greater than 

16 the quantity required under paragraph (2). 

17 Such regulations shall provide for the genera18 tion of an appropriate amount of credits for 

19 biodiesel fuel. If a small refinery notifies the 

20 Administrator that it waives the exemption pro21 vided by this Act, the regulations shall provide 

22 for the generation of credits by the small refin23 ery beginning in the year following such notifi24 cation. 
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1 ‘‘(B) USE OF CREDITS.—A person that 

2 generates credits under subparagraph (A) may 

3 use the credits, or transfer all or a portion of 

4 the credits to another person, for the purpose 

5 of complying with paragraph (2). 

6 ‘‘(C) LIFE OF CREDITS.—A credit gen7 erated under this paragraph shall be valid to 

8 show compliance: 

9 (i) in the calendar year in which the 

10 credit was generated or the next calendar 

11 year, or 

12 (ii) in the calendar year in which the 

13 credit was generated or next two consecu14 tive calendar years if the Administrator 

15 promulgates regulations under paragraph 

16 (6). 

17 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

18 CREDITS.—The regulations promulgated to 

19 carry out this subsection shall include provi20 sions allowing any person that is unable to gen21 erate or purchase sufficient credits to meet the 

22 requirements under paragraph (2) to carry for23 ward a renewables deficit provided that, in the 

24 calendar year following the year in which the 

25 renewables deficit is created, such person shall 
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1 achieve compliance with the renewables require2 ment under paragraph (2), and shall generate 

3 or purchase additional renewables credits to off4 set the renewables deficit of the previous year. 

5 ‘‘(6) SEASONAL VARIATIONS IN RENEWABLE

6 FUEL USE.—

7 ‘‘(A) STUDY.—For each of calendar years 

8 2005 through 2015, the Administrator of the 

9 Energy Information Administration, shall con10 duct a study of renewable fuels blending to de11 termine whether there are excessive seasonal 

12 variations in the use of renewable fuels. 

13 ‘‘(B) REGULATION OF EXCESSIVE SEA14 SONAL VARIATIONS.—If, for any calendar year, 

15 the Administrator of the Energy Information 

16 Administration, based on the study under sub17 paragraph (A), makes the determinations speci18 fied in subparagraph (C), the Administrator 

19 shall promulgate regulations to ensure that 35 

20 percent or more of the quantity of renewable 

21 fuels necessary to meet the requirement of 

22 paragraph (2) is used during each of the peri23 ods specified in subparagraph (D) of each sub24 sequent calendar year.
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1 ‘‘(C) DETERMINATIONS.—The determina2 tions referred to in subparagraph (B) are 

3 that—

4 ‘‘(i) less than 35 percent of the quan5 tity of renewable fuels necessary to meet 

6 the requirement of paragraph (2) has been 

7 used during one of the periods specified in 

8 subparagraph (D) of the calendar year; 

9 ‘‘(ii) a pattern of excessive seasonal 

10 variation described in clause (i) will con11 tinue in subsequent calendar years; and 

12 ‘‘(iii) promulgating regulations or 

13 other requirements to impose a 35% or 

14 more seasonal use of renewable fuels will 

15 not prevent or interfere with the attain16 ment of national ambient air quality stand17 ards or significantly increase the price of 

18 motor fuels to the consumer. 

19 ‘‘(D) PERIODS.—The two periods referred 

20 to in this paragraph are—

21 ‘‘(i) April through September; and 

22 ‘‘(ii) January through March and Oc23 tober through December. 

24 ‘‘(E) EXCLUSIONS.—Renewable fuels 

25 blended or consumed in 2005 in a State which 
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•HR 1644 IH 

1 has received a waiver under section 209(b) shall 

2 not be included in the study in subparagraph 

3 (A). 

4 ‘‘(7) WAIVERS.—

5 ‘‘(A) IN GENERAL.—The Administrator, in 

6 consultation with the Secretary of Agriculture 

7 and the Secretary of Energy, may waive the re8 quirement of paragraph (2) in whole or in part 

9 on petition by one or more States by reducing 

10 the national quantity of renewable fuel required 

11 under this subsection—

12 ‘‘(i) based on a determination by the 

13 Administrator, after public notice and op14 portunity for comment, that implementa15 tion of the requirement would have a sig16 nificant and meaningful adverse impact on 

17 the economy or environment of a State, a 

18 region, or the United States, or will pre19 vent or interfere with the attainment of a 

20 national ambient air quality standard in 

21 any area of a State; or 

22 ‘‘(ii) based on a determination by the 

23 Administrator, after public notice and op24 portunity for comment, that there is an in-
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1 adequate domestic supply or distribution 

2 capacity to meet the requirement. 

3 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad4 ministrator, in consultation with the Secretary 

5 of Agriculture and the Secretary of Energy, 

6 shall approve or disapprove a State petition for 

7 a waiver of the requirement of paragraph (2) 

8 within 90 days after the date on which the peti9 tion is received by the Administrator. If the Ad10 ministrator does not act to approve or dis11 approve a State petition for a waiver within 90 

12 days, the Administrator shall publish a notice 

13 setting forth the reasons for not acting within 

14 the required 90-day period. 

15 ‘‘(C) TERMINATION OF WAIVERS.—A waiv16 er granted under subparagraph (A) shall termi17 nate after 1 year, but may be renewed by the 

18 Administrator after consultation with the Sec19 retary of Agriculture and the Secretary of En20 ergy. 

21 ‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF

22 PROGRAM.—Not later than 180 days from enact23 ment, the Secretary of Energy shall complete for the 

24 Administrator a study assessing whether the renew25 able fuels requirement under paragraph (2) will like-
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•HR 1644 IH 

1 ly result in significant adverse consumer impacts in 

2 2005, on a national, regional or State basis. Such 

3 study shall evaluate renewable fuel supplies and 

4 prices, blendstock supplies, and supply and distribu5 tion system capabilities. Based on such study, the 

6 Secretary shall make specific recommendations to 

7 the Administrator regarding waiver of the require8 ments of paragraph (2), in whole or in part, to avoid 

9 any such adverse impacts. Within 270 days from en10 actment, the Administrator shall, consistent with the 

11 recommendations of the Secretary waive, in whole or 

12 in part, the renewable fuels requirement under para13 graph (2) by reducing the national quantity of re14 newable fuel required under this subsection in 2005. 

15 This provision shall not be interpreted as limiting 

16 the Administrator’s authority to waive the require17 ments of paragraph (2) in whole, or in part, under 

18 paragraph (7) or paragraph (9), pertaining to waiv19 ers. 

20 ‘‘(9) ASSESSMENT AND WAIVER.—The Sec21 retary of Energy, in consultation with the Adminis22 trator of the Environmental Protection Agency and 

23 the Secretary of Agriculture on his own motion, or 

24 upon petition of any State shall evaluate the require25 ment of paragraph (2) and determine, prior to Janu-
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1 ary 1, 2007, or prior to January 1 of any subse2 quent year in which the applicable volume of renew3 able fuel is increased under paragraph (2)(B), 

4 whether the requirement of paragraph (2), including 

5 the applicable volume of renewable fuel contained in 

6 paragraph (2)(B) should remain in effect, in whole 

7 or in part, during 2007 or any year or years subse8 quent to 2007. In evaluating the requirement of 

9 paragraph (2) and in making any determination 

10 under this section, the Secretary shall consider the 

11 best available information and data collected by ac12 cepted methods or best available means regarding—

13 ‘‘(A) the capacity of renewable fuel pro14 ducers to supply an adequate amount of renew15 able fuel at competitive prices to fulfill the re16 quirement in paragraph (2); 

17 ‘‘(B) the potential of the requirement in 

18 paragraph (2) to significantly raise the price of 

19 gasoline, food or heating oil for consumers in 

20 any significant area or region of the country 

21 above the price that would otherwise apply to 

22 such commodities in the absence of the require23 ment; 

24 ‘‘(C) the potential of the requirement in 

25 paragraph (2) to interfere with the supply of 
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1 fuel in any significant gasoline market or region 

2 of the country, including interference with the 

3 efficient operation of refiners, blenders, import4 ers, wholesale suppliers, and retail vendors of 

5 gasoline, and other motor fuels; and 

6 ‘‘(D) the potential of the requirement to 

7 cause or promote exceedences of Federal, State, 

8 or local air quality standards. 

9 If the Secretary determines, after public notice and 

10 the opportunity for comment, that the requirement 

11 of paragraph (2) would have significant and mean12 ingful adverse impact on the supply of fuel and re13 lated infrastructure or on the economy, environment, 

14 public health or environment of any significant area 

15 or region of the country, the Secretary may waive, 

16 in whole or in part, the requirement of paragraph 

17 (2) in any one year or period of years as well as re18 duce the applicable volume of renewable fuel con19 tained in paragraph (2)(B) in any one year or period 

20 of years. 

21 ‘‘(10) SMALL REFINERIES.—

22 ‘‘(A) IN GENERAL.—The requirement of 

23 paragraph (2) shall not apply to small refineries 

24 until the first calendar year beginning more 

25 than 5 years after the first year set forth in the
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1 table in paragraph (2)(B)(i). Not later than De2 cember 31, 2006, the Secretary of Energy shall 

3 complete for the Administrator a study to de4 termine whether the requirement of paragraph 

5 (2) would impose a disproportionate economic 

6 hardship on small refineries. For any small re7 finery that the Secretary of Energy determines 

8 would experience a disproportionate economic 

9 hardship, the Administrator shall extend the 

10 small refinery exemption for such small refinery 

11 for no less than two additional years. 

12 ‘‘(B) ECONOMIC HARDSHIP.—

13 ‘‘(i) EXTENSION OF EXEMPTION.—A 

14 small refinery may at any time petition the 

15 Administrator for an extension of the ex16 emption from the requirement of para17 graph (2) for the reason of dispropor18 tionate economic hardship. In evaluating a 

19 hardship petition, the Administrator, in 

20 consultation with the Secretary of Energy, 

21 shall consider the findings of the study in 

22 addition to other economic factors. 

23 ‘‘(ii) DEADLINE FOR ACTION ON PETI24 TIONS.—The Administrator shall act on 

25 any petition submitted by a small refinery 
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1 for a hardship exemption not later than 90 

2 days after the receipt of the petition. 

3 ‘‘(C) CREDIT PROGRAM.—If a small refin4 ery notifies the Administrator that it waives the 

5 exemption provided by this Act, the regulations 

6 shall provide for the generation of credits by 

7 the small refinery beginning in the year fol8 lowing such notification. 

9 ‘‘(D) OPT-IN FOR SMALL REFINERS.—A 

10 small refinery shall be subject to the require11 ments of this section if it notifies the Adminis12 trator that it waives the exemption under sub13 paragraph (A).’’. 

14 (b) PENALTIES AND ENFORCEMENT.—Section 

15 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

16 amended—

17 (1) in paragraph (1)—

18 (A) in the first sentence, by striking ‘‘or 

19 (n)’’ each place it appears and inserting ‘‘(n) or 

20 (o)’’; and 

21 (B) in the second sentence, by striking ‘‘or 

22 (m)’’ and inserting ‘‘(m), or (o)’’; and 

23 (2) in the first sentence of paragraph (2), by 

24 striking ‘‘and (n)’’ each place it appears and insert25 ing ‘‘(n), and (o)’’. 
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1 (c) SURVEY OF RENEWABLE FUEL MARKET.—

2 (1) SURVEY AND REPORT.—Not later than De3 cember 1, 2006, and annually thereafter, the Admin4 istrator of the Environmental Protection Agency (in 

5 consultation with the Secretary of Energy acting 

6 through the Administrator of the Energy Informa7 tion Administration) shall—

8 (A) conduct, with respect to each conven9 tional gasoline use area and each reformulated 

10 gasoline use area in each State, a survey to de11 termine the market shares of—

12 (i) conventional gasoline containing 

13 ethanol; 

14 (ii) reformulated gasoline containing 

15 ethanol; 

16 (iii) conventional gasoline containing 

17 renewable fuel; and 

18 (iv) reformulated gasoline containing 

19 renewable fuel; and 

20 (B) submit to Congress, and make publicly 

21 available, a report on the results of the survey 

22 under subparagraph (A). 

23 (2) RECORDKEEPING AND REPORTING RE24 QUIREMENTS.—The Administrator may require any 

25 refiner, blender, or importer to keep such records 
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•HR 1644 IH 

1 and make such reports as are necessary to ensure 

2 that the survey conducted under paragraph (1) is 

3 accurate. The Administrator shall rely, to the extent 

4 practicable, on existing reporting and recordkeeping 

5 requirements to avoid duplicative requirements. 

6 (3) APPLICABLE LAW.—Activities carried out 

7 under this subsection shall be conducted in a man8 ner designed to protect confidentiality of individual 

9 responses. 

10 (4) CALCULATION OF MARKET SHARES.—Mar11 ket shares for conventional gasoline and reformu12 lated gasoline use areas will be calculated on a state13 wide basis using information collected under para14 graph (2) and other information available to the Ad15 ministrator. Market share information may be based 

16 upon gasoline distribution patterns that include 

17 multistate use areas. 

18 SEC. 9102. FUELS SAFE HARBOR. 

19 (a) IN GENERAL.—Notwithstanding any other provi20 sion of Federal or State law, no renewable fuel, as defined 

21 by section 211(o)(1) of the Clean Air Act, or fuel con22 taining MTBE, used or intended to be used as a motor 

23 vehicle fuel, nor any motor vehicle fuel containing such 

24 renewable fuel or MTBE, shall be deemed defective in de25 sign or manufacture by virtue of the fact that it is, or 
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1 contains, such a renewable fuel or MTBE, if it does not 

2 violate a control or prohibition imposed by the Adminis3 trator under section 211 of such Act, and the manufac4 turer is in compliance with all requests for information 

5 under subsection (b) of such section 211(b) of the Clean 

6 Air Act. If the safe harbor provided by this section does 

7 not apply, the existence of a design defect or manufac8 turing defect shall be determined under otherwise applica9 ble law. Nothing in this paragraph shall be construed to 

10 affect the liability of any person for environmental remedi11 ation costs, drinking water contamination, negligence, 

12 public nuisance or any other liability other than liability 

13 for a defect in design or manufacture of a motor vehicle 

14 fuel. 

15 (b) EFFECTIVE DATE.—This section shall be effec16 tive as of the date of enactment and shall apply with re17 spect to all claims filed on or after that date. 

18 SEC. 9103. FINDINGS AND MTBE TRANSITION ASSISTANCE. 

19 (a) FINDINGS.—Congress finds that—

20 (1) since 1979, methyl tertiary butyl ether (re21 ferred to in this section as ‘‘MTBE’’) has been used 

22 nationwide at low levels in gasoline to replace lead 

23 as an octane booster or anti-knocking agent; 

24 (2) Public Law 101–549 (commonly known as 

25 the ‘‘Clean Air Act Amendments of 1990’’) (42
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1 U.S.C. 7401 et seq.) established a fuel oxygenate 

2 standard under which reformulated gasoline must 

3 contain at least 2 percent oxygen by weight; 

4 (3) at the time of the adoption of the fuel oxy5 gen standard, Congress was aware that significant 

6 use of MTBE would result from the adoption of that 

7 standard, and that the use of MTBE would likely be 

8 important to the cost-effective implementation of 

9 that program; 

10 (4) Congress was aware that gasoline and its 

11 component additives can and do leak from storage 

12 tanks; 

13 (5) the fuel industry responded to the fuel oxy14 genate standard established by Public Law 101–549 

15 by making substantial investments in—

16 (A) MTBE production capacity; and 

17 (B) systems to deliver MTBE-containing 

18 gasoline to the marketplace; 

19 (6) Congress has—

20 (A) reconsidered the relative value of the 

21 oxygenate requirement for reformulated gaso22 line; and 

23 (B) decided to provide for the elimination 

24 of the oxygenate requirement for reformulated 
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1 gasoline and to provide for a renewable content 

2 requirement for motor fuel; and 

3 (7) it is appropriate for Congress to provide 

4 some limited transition assistance—

5 (A) to merchant producers of MTBE who 

6 produced MTBE in response to a market cre7 ated by the oxygenate requirement contained in 

8 the Clean Air Act; and 

9 (B) for the purpose of mitigating any fuel 

10 supply problems that may result from the elimi11 nation of the oxygenate requirement for refor12 mulated gasoline. 

13 (b) PURPOSES.—The purpose of this section is to 

14 provide assistance to merchant producers of MTBE in 

15 making the transition from producing MTBE to producing 

16 other fuel additives. 

17 (c) MTBE MERCHANT PRODUCER CONVERSION AS18 SISTANCE.—Section 211(c) of the Clean Air Act (42 

19 U.S.C. 7545(c)) is amended by adding at the end the fol20 lowing: 

21 ‘‘(5) MTBE MERCHANT PRODUCER CONVER22 SION ASSISTANCE.—

23 ‘‘(A) IN GENERAL.—

24 ‘‘(i) GRANTS.—The Secretary of En25 ergy, in consultation with the Adminis-
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1 trator, may make grants to merchant pro2 ducers of methyl tertiary butyl ether in the 

3 United States to assist the producers in 

4 the conversion of eligible production facili5 ties described in subparagraph (C) to the 

6 production of iso-octane and alkylates. 

7 ‘‘(ii) DETERMINATION.—The Admin8 istrator, in consultation with the Secretary 

9 of Energy, may determine that transition 

10 assistance for the production of iso-octane 

11 and alkylates is inconsistent with the pro12 visions of subparagraph (B) and, on that 

13 basis, may deny applications for grants au14 thorized by this provision. 

15 ‘‘(B) FURTHER GRANTS.—The Secretary 

16 of Energy, in consultation with the Adminis17 trator, may also further make grants to mer18 chant producers of MTBE in the United States 

19 to assist the producers in the conversion of eli20 gible production facilities described in subpara21 graph (C) to the production of such other fuel 

22 additives that, consistent with this subsection—

23 ‘‘(i) unless the Administrator deter24 mines that such fuel additives may reason-
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•HR 1644 IH 

1 ably be anticipated to endanger public 

2 health or the environment; 

3 ‘‘(ii) have been registered and have 

4 been tested or are being tested in accord5 ance with the requirements of this section; 

6 and 

7 ‘‘(iii) will contribute to replacing gaso8 line volumes lost as a result of paragraph 

9 (5). 

10 ‘‘(C) ELIGIBLE PRODUCTION FACILI11 TIES.—A production facility shall be eligible to 

12 receive a grant under this paragraph if the pro13 duction facility—

14 ‘‘(i) is located in the United States; 

15 and 

16 ‘‘(ii) produced methyl tertiary butyl 

17 ether for consumption before April 1, 2003 

18 and ceased production at any time after 

19 the date of enactment. 

20 ‘‘(D) AUTHORIZATION OF APPROPRIA21 TIONS.—There is authorized to be appropriated 

22 to carry out this paragraph $250,000,000 for 

23 each of fiscal years 2004 through 2006, to re24 main available until expended.’’.
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1 (d) EFFECT ON STATE LAW.—The amendments 

2 made to the Clean Air Act by this title have no effect re3 garding any available authority of States to limit the use 

4 of methyl tertiary butyl ether in motor vehicle fuel.

5 SEC. 9104. ELIMINATION OF OXYGEN CONTENT REQUIRE6 MENT FOR REFORMULATED GASOLINE. 

7 (a) ELIMINATION.—

8 (1) IN GENERAL.—Section 211(k) of the Clean 

9 Air Act (42 U.S.C. 7545(k)) is amended—

10 (A) in paragraph (2)—

11 (i) in the second sentence of subpara12 graph (A), by striking ‘‘(including the oxy13 gen content requirement contained in sub14 paragraph (B))’’; 

15 (ii) by striking subparagraph (B); and 

16 (iii) by redesignating subparagraphs 

17 (C) and (D) as subparagraphs (B) and 

18 (C), respectively; 

19 (B) in paragraph (3)(A), by striking clause 

20 (v); 

21 (C) in paragraph (7)—

22 (i) in subparagraph (A)—

23 (I) by striking clause (i); and
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1 (II) by redesignating clauses (ii) 

2 and (iii) as clauses (i) and (ii), respec3 tively; and 

4 (ii) in subparagraph (C)—

5 (I) by striking clause (ii); and 

6 (II) by redesignating clause (iii) 

7 as clause (ii); and 

8 (2) EFFECTIVE DATE.—The amendments made 

9 by paragraph (1) take effect 270 days after the date 

10 of enactment of this Act, except that such amend11 ments shall take effect upon enactment in any State 

12 that has received a waiver under section 209(b) of 

13 the Clean Air Act. 

14 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS15 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

16 Act (42 U.S.C. 7545(k)(1)) is amended—

17 (1) by striking ‘‘Within 1 year after the enact18 ment of the Clean Air Act Amendments of 1990,’’ 

19 and inserting the following: 

20 ‘‘(A) IN GENERAL.—Not later than No21 vember 15, 1991,’’; and 

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

23 ‘‘(B) MAINTENANCE OF TOXIC AIR POL24 LUTANT EMISSIONS REDUCTIONS FROM REFOR25 MULATED GASOLINE.—
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1 ‘‘(i) DEFINITIONS.—In this subpara2 graph the term ‘PADD’ means a Petro3 leum Administration for Defense District. 

4 ‘‘(ii) REGULATIONS REGARDING EMIS5 SIONS OF TOXIC AIR POLLUTANTS.—Not 

6 later than 270 days after the date of en7 actment of this subparagraph the Adminis8 trator shall establish, for each refinery or 

9 importer, standards for toxic air pollutants 

10 from use of the reformulated gasoline pro11 duced or distributed by the refinery or im12 porter that maintain the reduction of the 

13 average annual aggregate emissions of 

14 toxic air pollutants for reformulated gaso15 line produced or distributed by the refinery 

16 or importer during calendar years 1999 

17 and 2000, determined on the basis of data 

18 collected by the Administrator with respect 

19 to the refinery or importer. 

20 ‘‘(iii) STANDARDS APPLICABLE TO

21 SPECIFIC REFINERIES OR IMPORTERS.—

22 ‘‘(I) APPLICABILITY OF STAND23 ARDS.—For any calendar year, the 

24 standards applicable to a refinery or 

25 importer under clause (ii) shall apply 
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1 to the quantity of gasoline produced 

2 or distributed by the refinery or im3 porter in the calendar year only to the 

4 extent that the quantity is less than 

5 or equal to the average annual quan6 tity of reformulated gasoline produced 

7 or distributed by the refinery or im8 porter during calendar years 1999 

9 and 2000. 

10 ‘‘(II) APPLICABILITY OF OTHER

11 STANDARDS.—For any calendar year, 

12 the quantity of gasoline produced or 

13 distributed by a refinery or importer 

14 that is in excess of the quantity sub15 ject to subclause (I) shall be subject 

16 to standards for toxic air pollutants 

17 promulgated under subparagraph (A) 

18 and paragraph (3)(B). 

19 ‘‘(iv) CREDIT PROGRAM.—The Admin20 istrator shall provide for the granting and 

21 use of credits for emissions of toxic air pol22 lutants in the same manner as provided in 

23 paragraph (7). 

24 ‘‘(v) REGIONAL PROTECTION OF

25 TOXICS REDUCTION BASELINES.—
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1 ‘‘(I) IN GENERAL.—Not later 

2 than 60 days after the date of enact3 ment of this subparagraph, and not 

4 later than April 1 of each calendar 

5 year that begins after that date of en6 actment, the Administrator shall pub7 lish in the Federal Register a report 

8 that specifies, with respect to the pre9 vious calendar year—

10 ‘‘(aa) the quantity of refor11 mulated gasoline produced that is 

12 in excess of the average annual 

13 quantity of reformulated gasoline 

14 produced in 1999 and 2000; and 

15 ‘‘(bb) the reduction of the 

16 average annual aggregate emis17 sions of toxic air pollutants in 

18 each PADD, based on retail sur19 vey data or data from other ap20 propriate sources. 

21 ‘‘(II) EFFECT OF FAILURE TO

22 MAINTAIN AGGREGATE TOXICS RE23 DUCTIONS.—If, in any calendar year, 

24 the reduction of the average annual 

25 aggregate emissions of toxic air pol-
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1 lutants in a PADD fails to meet or 

2 exceed the reduction of the average 

3 annual aggregate emissions of toxic 

4 air pollutants in the PADD in cal5 endar years 1999 and 2000, the Ad6 ministrator, not later than 90 days 

7 after the date of publication of the re8 port for the calendar year under sub9 clause (I), shall—

10 ‘‘(aa) identify, to the max11 imum extent practicable, the rea12 sons for the failure, including the 

13 sources, volumes, and character14 istics of reformulated gasoline 

15 that contributed to the failure; 

16 and 

17 ‘‘(bb) promulgate revisions 

18 to the regulations promulgated 

19 under clause (ii), to take effect 

20 not earlier than 180 days but not 

21 later than 270 days after the 

22 date of promulgation, to provide 

23 that, notwithstanding clause 

24 (iii)(II), all reformulated gasoline 

25 produced or distributed at each
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1 refinery or importer shall meet 

2 the standards applicable under 

3 clause (ii) not later than April 1 

4 of the year following the report 

5 in subclause (II) and for subse6 quent years. 

7 ‘‘(vi) REGULATIONS TO CONTROL

8 HAZARDOUS AIR POLLUTANTS FROM

9 MOTOR VEHICLES AND MOTOR VEHICLE

10 FUELS.—Not later than July 1, 2004, the 

11 Administrator shall promulgate final regu12 lations to control hazardous air pollutants 

13 from motor vehicles and motor vehicle 

14 fuels, as provided for in section 80.1045 of 

15 title 40, Code of Federal Regulations (as 

16 in effect on the date of enactment of this 

17 subparagraph).’’. 

18 (c) CONSOLIDATION IN REFORMULATED GASOLINE

19 REGULATIONS.—Not later than 180 days after the date 

20 of enactment of this Act, the Administrator shall revise 

21 the reformulated gasoline regulations under subpart D of 

22 part 80 of title 40, Code of Federal Regulations, to con23 solidate the regulations applicable to VOC-Control Re24 gions 1 and 2 under section 80.41 of that title by elimi25 nating the less stringent requirements applicable to gaso-
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1 line designated for VOC-Control Region 2 and instead ap2 plying the more stringent requirements applicable to gaso3 line designated for VOC-Control Region 1. 

4 (d) SAVINGS CLAUSE.—Nothing in this section is in5 tended to affect or prejudice either any legal claims or ac6 tions with respect to regulations promulgated by the Ad7 ministrator prior to enactment of this Act regarding emis8 sions of toxic air pollutants from motor vehicles or the 

9 adjustment of standards applicable to a specific refinery 

10 or importer made under such prior regulations and the 

11 Administrator may apply such adjustments to the stand12 ards applicable to such refinery or importer under clause 

13 (iii)(I) of section 211(k)(1)(B) of the Clean Air Act, ex14 cept that— 

15 (1) the Administrator shall revise such adjust16 ments to be based only on calendar years 1999–

17 2000, and 

18 (2) for adjustments based on toxic air pollutant 

19 emissions from reformulated gasoline significantly 

20 below the national annual average emissions of toxic 

21 air pollutants from all reformulated gasoline, the 

22 Administrator may revise such adjustments to take 

23 account of the scope of any lawful and enforceable 

24 Federal or State prohibition on methyl tertiary butyl 

25 ether imposed after the effective date of the enact-
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1 ment of this paragraph, except that any such adjust2 ment shall require such refiner or importer, to the 

3 greatest extent practicable, to maintain the reduc4 tion achieved during calendar year 1999–2000 in the 

5 average annual aggregate emissions of toxic air pol6 lutants from reformulated gasoline produced or dis7 tributed by the refinery or importer. Any such ad8 justment shall not be made at a level below the aver9 age percentage of reductions of emissions of toxic air 

10 pollutants for reformulated gasoline supplied to 

11 PADD I during calendar years 1999–2000. 

12 SEC. 9105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

13 Section 211 of the Clean Air Act (42 U.S.C. 7545) 

14 is amended by inserting after subsection (o) the following: 

15 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

16 AND EMISSIONS MODEL.—

17 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

18 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

19 years after the date of enactment of this para20 graph, the Administrator shall publish for pub21 lic comment a draft analysis of the changes in 

22 emissions of air pollutants and air quality due 

23 to the use of motor vehicle fuel and fuel addi24 tives resulting from implementation of the 
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1 amendments made by title IX of the Energy 

2 Policy Act of 2003. 

3 ‘‘(B) FINAL ANALYSIS.—After providing a 

4 reasonable opportunity for comment but not 

5 later than 5 years after the date of enactment 

6 of this paragraph, the Administrator shall pub7 lish the analysis in final form. 

8 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

9 this subsection, as soon as the necessary data are 

10 available, the Administrator shall develop and final11 ize an emissions model that reasonably reflects the 

12 effects of gasoline characteristics or components on 

13 emissions from vehicles in the motor vehicle fleet 

14 during calendar year 2005.’’. 

15 SEC. 9106. DATA COLLECTION. 

16 Section 205 of the Department of Energy Organiza17 tion Act (42 U.S.C. 7135) is amended by adding at the 

18 end the following: 

19 ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 

20 improve the ability to evaluate the effectiveness of the Na21 tion’s renewable fuels mandate, the Administrator shall 

22 conduct and publish the results of a survey of renewable 

23 fuels demand in the motor vehicle fuels market in the 

24 United States monthly, and in a manner designed to pro25 tect the confidentiality of individual responses. In con-
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1 ducting the survey, the Administrator shall collect infor2 mation both on a national and regional basis, including—

3 ‘‘(A) the quantity of renewable fuels produced; 

4 ‘‘(B) the quantity of renewable fuels blended; 

5 ‘‘(C) the quantity of renewable fuels imported; 

6 ‘‘(D) the quantity of renewable fuels demanded; 

7 ‘‘(E) market price data; and 

8 ‘‘(F) such other analyses or evaluations as the 

9 Administrator finds is necessary to achieve the pur10 poses of this section. 

11 ‘‘(2) The Administrator shall also collect or estimate 

12 information both on a national and regional basis, pursu13 ant to subparagraphs (A) through (F) of paragraph (1), 

14 for the five years prior to implementation of this sub15 section. 

16 ‘‘(3) This subsection does not affect the authority of 

17 the Administrator to collect data under section 52 of the 

18 Federal Energy Administration Act of 1974 (15 U.S.C. 

19 790a).’’. 

20 SEC. 9107. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

21 STUDY. 

22 (a) STUDY.—

23 (1) IN GENERAL.—The Administrator of the 

24 Environmental Protection Agency and the Secretary 

25 of Energy shall jointly conduct a study of Federal,
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1 State, and local requirements concerning motor vehi2 cle fuels, including—

3 (A) requirements relating to reformulated 

4 gasoline, volatility (measured in Reid vapor 

5 pressure), oxygenated fuel, and diesel fuel; and 

6 (B) other requirements that vary from 

7 State to State, region to region, or locality to 

8 locality. 

9 (2) REQUIRED ELEMENTS.—The study shall as10 sess—

11 (A) the effect of the variety of require12 ments described in paragraph (1) on the supply, 

13 quality, and price of motor vehicle fuels avail14 able to consumers in various States and local15 ities; 

16 (B) the effect of the requirements de17 scribed in paragraph (1) on achievement of—

18 (i) national, regional, and local air 

19 quality standards and goals; and 

20 (ii) related environmental and public 

21 health protection standards and goals; 

22 (C) the effect of Federal, State, and local 

23 motor vehicle fuel regulations, including mul24 tiple motor vehicle fuel requirements, on—

25 (i) domestic refineries; 
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1 (ii) the fuel distribution system; and 

2 (iii) industry investment in new capac3 ity; 

4 (D) the effect of the requirements de5 scribed in paragraph (1) on emissions from ve6 hicles, refineries, and fuel handling facilities; 

7 (E) the feasibility of developing national or 

8 regional motor vehicle fuel slates for the 48 

9 contiguous States that, while improving air 

10 quality at the national, regional and local levels 

11 consistent with the attainment of national am12 bient air quality standards, could—

13 (i) enhance flexibility in the fuel dis14 tribution infrastructure and improve fuel 

15 fungibility; 

16 (ii) reduce price volatility and costs to 

17 consumers and producers; 

18 (iii) provide increased liquidity to the 

19 gasoline market; and 

20 (iv) enhance fuel quality, consistency, 

21 and supply; 

22 (F) the feasibility of providing incentives, 

23 to promote cleaner burning motor vehicle fuel; 

24 and 
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1 (G) the extent to which improvements in 

2 air quality and any increases or decreases in 

3 the price of motor fuel can be projected to re4 sult from the Environmental Protection Agen5 cy’s Tier II requirements for conventional gaso6 line and vehicle emission systems, the reformu7 lated gasoline program, the renewable content 

8 requirements established by this subtitle, State 

9 programs regarding gasoline volatility, and any 

10 other requirements imposed by States or local11 ities affecting the composition of motor fuel. 

12 (b) REPORT.—

13 (1) IN GENERAL.—Not later than December 31, 

14 2006, the Administrator of the Environmental Pro15 tection Agency and the Secretary of Energy shall 

16 submit to Congress a report on the results of the 

17 study conducted under subsection (a). 

18 (2) RECOMMENDATIONS.—

19 (A) IN GENERAL.—The report shall con20 tain recommendations for legislative and admin21 istrative actions that may be taken—

22 (i) to improve air quality; 

23 (ii) to reduce costs to consumers and 

24 producers; and 

25 (iii) to increase supply liquidity. 
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1 (B) REQUIRED CONSIDERATIONS.—The 

2 recommendations under subparagraph (A) shall 

3 take into account the need to provide advance 

4 notice of required modifications to refinery and 

5 fuel distribution systems in order to ensure an 

6 adequate supply of motor vehicle fuel in all 

7 States. 

8 (3) CONSULTATION.—In developing the report, 

9 the Administrator of the Environmental Protection 

10 Agency and the Secretary of Energy shall consult 

11 with—

12 (A) the Governors of the States; 

13 (B) automobile manufacturers; 

14 (C) motor vehicle fuel producers and dis15 tributors; and 

16 (D) the public.

17 Subtitle B—MTBE Cleanup 

18 SEC. 9201. FUNDING FOR MTBE CONTAMINATION. 

19 Notwithstanding any other provision of law, there is 

20 authorized to be appropriated to the Administrator of the 

21 United States Environmental Protection Agency from the 

22 Leaking Underground Storage Tank Trust Fund not more 

23 than $850,000,000 to be used for taking such action lim24 ited to site assessment (including exposure assessment), 

25 corrective action, inspection of underground storage tank 
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1 systems, and groundwater monitoring as the Adminis2 trator deems necessary to protect human health, welfare, 

3 and the environment from underground storage tank re4 leases of fuel containing fuel oxygenates.

5 TITLE X—AUTOMOBILE 

6 EFFICIENCY 

7 SEC. 10001. AUTHORIZATION OF APPROPRIATIONS FOR IM8 PLEMENTATION AND ENFORCEMENT OF 

9 FUEL ECONOMY STANDARDS. 

10 In addition to any other funds authorized by law, 

11 there are authorized to be appropriated to the National 

12 Highway Traffic Safety Administration to implement and 

13 enforce average fuel economy standards $5,000,000 for 

14 fiscal years 2004 through 2006. 

15 SEC. 10002. STUDY OF FEASIBILITY AND EFFECTS OF RE16 DUCING USE OF FUEL FOR AUTOMOBILES. 

17 (a) IN GENERAL.—Not later than 30 days after the 

18 date of the enactment of this Act, the Administrator of 

19 the National Highway Traffic Safety Administration shall 

20 study the feasibility and effects of reducing by model year 

21 2012, by a significant percentage, the use of fuel for auto22 mobiles. 

23 (b) SUBJECTS OF STUDY.—The study under this sec24 tion shall include—
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1 (1) examination of, and recommendation of al2 ternatives to, the policy under current Federal law 

3 of establishing average fuel economy standards for 

4 automobiles and requiring each automobile manufac5 turer to comply with average fuel economy standards 

6 that apply to the automobiles it manufactures; 

7 (2) examination of how automobile manufactur8 ers could contribute toward achieving the reduction 

9 referred to in subsection (a); 

10 (3) examination of the potential of fuel cell 

11 technology in motor vehicles in order to determine 

12 the extent to which such technology may contribute 

13 to achieving the reduction referred to in subsection 

14 (a); and 

15 (4) examination of the effects of the reduction 

16 referred to in subsection (a) on—

17 (A) gasoline supplies; 

18 (B) the automobile industry, including 

19 sales of automobiles manufactured in the 

20 United States; 

21 (C) motor vehicle safety; and 

22 (D) air quality. 

23 (c) REPORT.—The Administrator shall submit to the 

24 Congress a report on the findings, conclusion, and rec-
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1 ommendations of the study under this section by not later 

2 than 1 year after the date of the enactment of this Act.

3 TITLE XI—PREVENTING THE 

4 MISUSE OF NUCLEAR MATE5 RIALS AND TECHNOLOGY 

6 SEC. 11001. PREVENTING THE MISUSE OF NUCLEAR MATE7 RIALS AND TECHNOLOGY. 

8 (a) AMENDMENT.—Chapter 14 of the Atomic Energy 

9 Act of 1954 (42 U.S.C. 2201 et seq.) is amended by add10 ing at the end the following new section: 

11 ‘‘SEC. 170D. PREVENTING THE MISUSE OF NU12 CLEAR MATERIALS AND TECHNOLOGY.—

13 ‘‘a. In order to successfully promote the development 

14 of nuclear energy as a safe and reliable source of electrical 

15 energy, it is the policy of the United States to prevent 

16 any nuclear materials, technology, components, sub17 stances, technical information, or related goods or services 

18 from being misused or diverted from peaceful nuclear en19 ergy purposes. 

20 ‘‘b. In order to further advance the policy set forth 

21 in subsection a., notwithstanding any other provision of 

22 law, no Federal agency shall issue any license, approval, 

23 or authorization for the export or reexport, or the transfer 

24 or retransfer, either directly or indirectly, to any country 

25 whose government has been identified by the Secretary of 
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1 State as engaged in state sponsorship of terrorist activities 

2 (specifically including any country the government of 

3 which, as of September 11, 2001, had been determined 

4 by the Secretary of State under section 620A(a) of the 

5 Foreign Assistance Act of 1961, section 6(j)(1) of the Ex6 port Administration Act of 1979, or section 40(d) of the 

7 Arms Export Control Act to have repeatedly provided sup8 port for acts of international terrorism) of—

9 ‘‘(1) any special nuclear material or byproduct 

10 material; 

11 ‘‘(2) any nuclear production or utilization facili12 ties; or 

13 ‘‘(3) any components, technologies, substances, 

14 technical information, or related goods or services 

15 used (or which could be used) in a nuclear produc16 tion or utilization facility. 

17 ‘‘c. Any license, approval, or authorization described 

18 in subsection b. made prior to the date of enactment of 

19 this section is hereby revoked.’’. 

20 (b) TABLE OF CONTENTS AMENDMENT.—The table 

21 of contents of such chapter 14 is amended by adding at 

22 the end the following item:

‘‘Sec. 170D. Preventing the misuse of nuclear materials and technology.’’.
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1 TITLE XII—ADDITIONAL 

2 PROVISIONS 

3 SEC. 12001. TRANSMISSION TECHNOLOGIES. 

4 The Federal Energy Regulatory Commission shall 

5 take affirmative steps in the exercise of its authorities 

6 under the Federal Power Act to encourage the deployment 

7 of transmission technologies that utilize real time moni8 toring and analytical software to increase and maximize 

9 the capacity and efficiency of transmission networks and 

10 to reduce line losses.

Æ