II 

Calendar No. 121 

109TH CONGRESS 

1ST SESSION S. 10 

To enhance the energy security of the United States, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 9, 2005 

Mr. DOMENICI, from the Committee on Energy and Natural Resources, reported the following original bill; which was read twice and placed on the 

calendar 

A BILL 

To enhance the energy security of the United States, 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 2005’’. 

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

7 this Act is as follows: 

Sec. 1. Short title; table of contents. 

Sec. 2. Definitions. 

TITLE I—ENERGY EFFICIENCY 
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Subtitle A—Federal Programs 

Sec. 101. Energy and water saving measures in congressional buildings. 

Sec. 102. Energy management requirements. 

Sec. 103. Energy use measurement and accountability. 

Sec. 104. Procurement of energy efficient products. 

Sec. 105. Energy savings performance contracts. 

Sec. 106. Voluntary commitments to reduce industrial energy intensity. 

Sec. 107. Federal building performance standards. 

Sec. 108. Increased use of recovered mineral component in federally funded 

projects involving procurement of cement or concrete. 

Subtitle B—Energy Assistance and State Programs 

Sec. 121. Weatherization assistance. 

Sec. 122. State energy programs. 

Sec. 123. Energy efficient appliance rebate programs. 

Sec. 124. Energy efficient public buildings. 

Sec. 125. Low income community energy efficiency pilot program. 

Sec. 126. State technologies advancement collaborative. 

Sec. 127. Model building energy code compliance grant program. 

Subtitle C—Energy Efficient Products 

Sec. 131. Energy Star program. 

Sec. 132. HVAC maintenance consumer education program. 

Sec. 133. Public energy education program. 

Sec. 134. Energy efficiency public information initiative. 

Sec. 135. Energy conservation standards for additional products. 

Sec. 136. Energy conservation standards for commercial equipment. 

Sec. 137. Expedited rulemaking. 

Sec. 138. Energy labeling. 

Sec. 139. Energy efficient electric and natural gas utilities study. 

Sec. 140. Energy efficiency pilot program. 

Sec. 141. Energy efficiency resource programs. 

Subtitle D—Measures to Conserve Petroleum 

Sec. 151. Reduction of dependence on imported petroleum. 

Subtitle E—Energy Efficiency in Housing 

Sec. 161. Public Housing Capital Fund. 

Sec. 162. Energy efficient appliances. 

Sec. 163. Energy efficiency standards. 

Sec. 164. Energy strategy for the Department of Housing and Urban Development. 

TITLE II—RENEWABLE ENERGY 

Subtitle A—General Provisions 

Sec. 201. Assessment of renewable energy resources. 

Sec. 202. Renewable energy production incentive. 

Sec. 203. Federal purchase requirement. 

Sec. 204. Renewable content of motor vehicle fuel. 

Sec. 205. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement. 
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Sec. 206. Data collection. 

Sec. 207. Sugar cane ethanol program. 

Sec. 208. Modification of Commodity Credit Corporation bioenergy program. 

Sec. 209. Advanced biofuel technologies program. 

Sec. 210. Assistance for rural communities with high energy costs. 

Subtitle B—Insular Energy 

Sec. 221. Definitions. 

Sec. 222. Assessment. 

Sec. 223. Project feasibility studies. 

Sec. 224. Implementation. 

Sec. 225. Authorization of appropriations. 

Subtitle C—Biomass Energy 

Sec. 231. Definitions. 

Sec. 232. Biomass commercial utilization grant program. 

Sec. 233. Improved biomass utilization program. 

Sec. 234. Report. 

Subtitle D—Geothermal Energy 

Sec. 241. Competitive lease sale requirements. 

Sec. 242. Direct use. 

Sec. 243. Royalties. 

Sec. 244. Geothermal leasing and permitting on Federal land. 

Sec. 245. Assessment of geothermal energy potential. 

Sec. 246. Cooperative or unit plans. 

Sec. 247. Royalty on byproducts. 

Sec. 248. Lease duration and work commitment requirements. 

Sec. 249. Annual rental. 

Sec. 250. Advanced royalties required for cessation of production. 

Sec. 251. Leasing and permitting on Federal land withdrawn for military purposes. 

Sec. 252. Technical amendments. 

Subtitle E—Hydroelectric 

Sec. 261. Alternative conditions and fishways. 

Sec. 262. Alaska State jurisdiction over small hydroelectric projects. 

Sec. 263. Flint Creek hydroelectric project. 

TITLE III—OIL AND GAS 

Subtitle A—Petroleum Reserve and Home Heating Oil 

Sec. 301. Permanent authority to operate the Strategic Petroleum Reserve and 

other energy programs. 

Sec. 302. National Oilheat Research Alliance. 

Subtitle B—Production Incentives 

Sec. 311. Definition of Secretary. 

Sec. 312. Program on oil and gas royalties in-kind. 

Sec. 313. Marginal property production incentives. 

Sec. 314. Incentives for natural gas production from deep wells in the shallow 

waters of the Gulf of Mexico. 
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Sec. 315. Royalty relief for deep water production. 

Sec. 316. Alaska offshore royalty suspension. 

Sec. 317. Oil and gas leasing in the National Petroleum Reserve in Alaska. 

Sec. 318. North slope science initiative. 

Sec. 319. Orphaned, abandoned, or idled wells on Federal land. 

Sec. 320. Combined hydrocarbon leasing. 

Sec. 321. Alternate energy-related uses on the outer Continental Shelf. 

Sec. 322. Preservation of geological and geophysical data. 

Sec. 323. Oil and gas lease acreage limitations. 

Sec. 324. Assessment of dependence of State of Hawaii on oil. 

Sec. 325. Denali Commission. 

Sec. 326. Comprehensive inventory of OCS oil and natural gas resources. 

Sec. 327. Review and demonstration program for oil and natural gas production. 

Subtitle C—Access to Federal Land 

Sec. 341. Federal onshore oil and gas leasing practices. 

Sec. 342. Management of Federal oil and gas leasing programs. 

Sec. 343. Consultation regarding oil and gas leasing on public land. 

Sec. 344. Pilot project to improve Federal permit coordination. 

Sec. 345. Energy facility rights-of-ways and corridors on Federal land. 

Sec. 346. Oil shale leasing. 

Subtitle D—Coastal Programs 

Sec. 371. Coastal impact assistance program. 

Subtitle E—Natural Gas 

Sec. 381. Exportation or importation of natural gas. 

Sec. 382. New natural gas storage facilities.

Sec. 383. Process coordination; hearings; rules of procedures. 

Sec. 384. Penalties. 

Sec. 385. Market manipulation. 

Sec. 386. Natural gas market transparency rules. 

Sec. 387. Deadline for decision on appeals of consistency determination under 

the Coastal Zone Management Act of 1972. 

Sec. 388. Federal-State liquefied natural gas forums. 

Sec. 389. Prohibition of trading and serving by certain persons. 

Subtitle F—Federal Coalbed Methane Regulation 

Sec. 391. Federal coalbed methane regulation. 

TITLE IV—COAL 

Subtitle A—Clean Coal Power Initiative 

Sec. 401. Authorization of appropriations. 

Sec. 402. Project criteria. 

Sec. 403. Report. 

Sec. 404. Clean coal centers of excellence. 

Sec. 405. Integrated coal/renewable energy system. 

Sec. 406. Loan to place Alaska clean coal technology facility in service. 

Sec. 407. Western integrated coal gasification demonstration project. 

Subtitle B—Federal Coal Leases 
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Sec. 411. Repeal of the 160-acre limitation for coal leases. 

Sec. 412. Mining plans. 

Sec. 413. Payment of advance royalties under coal leases. 

Sec. 414. Elimination of deadline for submission of coal lease operation and 

reclamation plan. 

Sec. 415. Application of amendments. 

TITLE V—INDIAN ENERGY 

Sec. 501. Short title. 

Sec. 502. Office of Indian Energy Policy and Programs. 

Sec. 503. Indian energy. 

Sec. 504. Four Corners transmission line project and electrification. 

Sec. 505. Energy efficiency in federally assisted housing. 

Sec. 506. Consultation with Indian tribes. 

TITLE VI—NUCLEAR MATTERS 

Subtitle A—Price-Anderson Act Amendments 

Sec. 601. Short title. 

Sec. 602. Extension of indemnification authority. 

Sec. 603. Maximum assessment. 

Sec. 604. Department of Energy liability limit. 

Sec. 605. Incidents outside the United States. 

Sec. 606. Reports. 

Sec. 607. Inflation adjustment. 

Sec. 608. Treatment of modular reactors. 

Sec. 609. Applicability. 

Sec. 610. Civil penalties. 

Subtitle B—General Nuclear Matters 

Sec. 621. Medical isotope production. 

Sec. 622. Safe disposal of greater-than-class C radioactive waste. 

Sec. 623. Prohibition on nuclear exports to countries that sponsor terrorism. 

Sec. 624. Decommissioning pilot program. 

Subtitle C—Next Generation Nuclear Plant Project 

Sec. 631. Project establishment. 

Sec. 632. Project management. 

Sec. 633. Project organization. 

Sec. 634. Nuclear regulatory commission. 

Sec. 635. Project timelines and authorization of appropriations. 

TITLE VII—VEHICLES AND FUELS 

Subtitle A—Existing Programs 

Sec. 701. Use of alternative fuels by dual-fueled vehicles. 

Sec. 702. Alternative fuel use by light duty vehicles. 

Sec. 703. Incremental cost allocation. 

Sec. 704. Alternative compliance and flexibility. 

Sec. 705. Report concerning compliance with alternative fueled vehicle purchasing requirements. 

Subtitle B—Automobile Efficiency 
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Sec. 711. Authorization of appropriations for implementation and enforcement 

of fuel economy standards. 

Subtitle C—Miscellaneous 

Sec. 721. Railroad efficiency. 

Sec. 722. Conserve by bicycling program. 

Sec. 723. Reduction of engine idling of heavy-duty vehicles. 

Sec. 724. Biodiesel engine testing project. 

Subtitle D—Federal and State Procurement 

Sec. 731. Definitions. 

Sec. 732. Federal and State procurement of fuel cell vehicles and hydrogen energy systems. 

Sec. 733. Federal procurement of stationary, portable, and micro fuel cells. 

TITLE VIII—HYDROGEN 

Sec. 801. Hydrogen research, development, and demonstration. 

TITLE IX—RESEARCH AND DEVELOPMENT 

Sec. 901. Short title. 

Sec. 902. Goals. 

Sec. 903. Definitions. 

Subtitle A—Energy Efficiency 

Sec. 911. Energy efficiency. 

Sec. 912. Next Generation Lighting Initiative. 

Sec. 913. National Building Performance Initiative. 

Sec. 914. Secondary electric vehicle battery use program. 

Sec. 915. Energy Efficiency Science Initiative. 

Subtitle B—Distributed Energy and Electric Energy Systems 

Sec. 921. Distributed energy and electric energy systems. 

Sec. 922. High power density industry program. 

Sec. 923. Micro-cogeneration energy technology. 

Sec. 924. Distributed energy technology demonstration program. 

Sec. 925. Electric transmission and distribution programs. 

Subtitle C—Renewable Energy 

Sec. 931. Renewable energy. 

Sec. 932. Bioenergy program. 

Sec. 933. Concentrating solar power research program. 

Sec. 934. Hybrid solar lighting research and development program. 

Sec. 935. Miscellaneous projects. 

Subtitle D—Nuclear Energy 

Sec. 941. Nuclear energy. 

Sec. 942. Nuclear energy research programs. 

Sec. 943. Advanced fuel cycle initiative. 

Sec. 944. Nuclear science and engineering support for institutions of higher 

education. 

Sec. 945. Security of nuclear facilities. 
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Sec. 946. Alternatives to industrial radioactive sources. 

Subtitle E—Fossil Energy 

Sec. 951. Fossil energy. 

Sec. 952. Oil and gas research programs. 

Sec. 953. Methane hydrate research. 

Sec. 954. Research and development for coal mining technologies. 

Sec. 955. Coal and related technologies program. 

Sec. 956. Carbon dioxide capture research and development. 

Sec. 957. Complex well technology testing facility. 

Subtitle F—Science 

Sec. 961. Science. 

Sec. 962. Fusion energy sciences program. 

Sec. 963. Support for science and energy facilities and infrastructure. 

Sec. 964. Catalysis research program. 

Sec. 965. Hydrogen. 

Sec. 966. Solid state lighting. 

Sec. 967. Advanced scientific computing for energy missions. 

Sec. 968. Genomes to Life Program. 

Sec. 969. Fission and fusion energy materials research program. 

Sec. 970. Energy-Water Supply Technologies Program. 

Sec. 971. Spallation neutron source. 

Subtitle G—International Cooperation 

Sec. 981. Western Hemisphere energy cooperation. 

Sec. 982. Cooperation between United States and Israel. 

TITLE X—DEPARTMENT OF ENERGY MANAGEMENT 

Sec. 1001. Availability of funds. 

Sec. 1002. Cost sharing. 

Sec. 1003. Merit review of proposals. 

Sec. 1004. External technical review of Departmental programs. 

Sec. 1005. Improved technology transfer of energy technologies. 

Sec. 1006. Technology Infrastructure Program. 

Sec. 1007. Small business advocacy and assistance. 

Sec. 1008. Outreach. 

Sec. 1009. Relationship to other laws. 

Sec. 1010. Improved coordination and management of civilian science and technology programs. 

Sec. 1011. Other transactions authority. 

Sec. 1012. Prizes for achievement in grand challenges of science and technology. 

Sec. 1013. Technical corrections. 

TITLE XI—PERSONNEL AND TRAINING 

Sec. 1101. Workforce trends and traineeship grants. 

Sec. 1102. Energy research fellowships. 

Sec. 1103. Educational programs in science and mathematics. 

Sec. 1104. Training guidelines for electric energy industry personnel. 

Sec. 1105. National Center for Energy Management and Building Technologies. 
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Sec. 1106. Improved access to energy-related scientific and technical careers. 

Sec. 1107. National Power Plant Operations Technology and Education Center. 

TITLE XII—ELECTRICITY 

Sec. 1201. Short title. 

Subtitle A—Reliability Standards 

Sec. 1211. Electric reliability standards. 

Subtitle B—Transmission Infrastructure Modernization 

Sec. 1221. Siting of interstate electric transmission facilities. 

Sec. 1222. Third-party finance. 

Sec. 1223. Advanced transmission technologies. 

Sec. 1224. Advanced power system technology incentive program. 

Subtitle C—Transmission Operation Improvements 

Sec. 1231. Open nondiscriminatory access. 

Sec. 1232. Regional Transmission Organizations. 

Sec. 1233. Federal utility participation in Transmission Organizations. 

Sec. 1234. Standard market design. 

Sec. 1235. Native load service obligation. 

Sec. 1236. Protection of transmission contracts in the Pacific Northwest. 

Subtitle D—Transmission Rate Reform 

Sec. 1241. Transmission infrastructure investment. 

Sec. 1242. Funding new interconnection and transmission upgrades. 

Subtitle E—Amendments to PURPA 

Sec. 1251. Net metering and additional standards. 

Sec. 1252. Smart metering. 

Sec. 1253. Cogeneration and small power production purchase and sale requirements. 

Sec. 1254. Interconnection. 

Subtitle F—Market Transparency, Enforcement, and Consumer Protection 

Sec. 1261. Market transparency rules. 

Sec. 1262. False Statements. 

Sec. 1263. Market manipulation. 

Sec. 1264. Enforcement. 

Sec. 1265. Refund effective date. 

Sec. 1266. Refund authority. 

Sec. 1267. Consumer privacy and unfair trade practices. 

Sec. 1268. Office of Consumer Advocacy. 

Sec. 1269. Authority of court to prohibit persons from serving as officers, directors, and energy traders. 

Sec. 1270. Relief for extraordinary violations. 

Subtitle G—Repeal of PUHCA and Merger Reform 

Sec. 1271. Short title. 

Sec. 1272. Definitions. 

Sec. 1273. Repeal of the Public Utility Holding Company Act of 1935. 
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Sec. 1274. Federal access to books and records. 

Sec. 1275. State access to books and records. 

Sec. 1276. Exemption authority. 

Sec. 1277. Affiliate transactions. 

Sec. 1278. Applicability. 

Sec. 1279. Effect on other regulations. 

Sec. 1280. Enforcement. 

Sec. 1281. Savings provisions. 

Sec. 1282. Implementation. 

Sec. 1283. Transfer of resources. 

Sec. 1284. Effective date. 

Sec. 1285. Service allocation. 

Sec. 1286. Authorization of appropriations. 

Sec. 1287. Conforming amendments to the Federal Power Act. 

Sec. 1288. Merger review reform. 

Subtitle H—Definitions 

Sec. 1291. Definitions. 

Subtitle I—Technical and Conforming Amendments 

Sec. 1295. Conforming amendments. 

TITLE XIII—STUDIES 

Sec. 1301. Energy and water saving measures in congressional buildings. 

Sec. 1302. Increased hydroelectric generation at existing Federal facilities. 

Sec. 1303. Alaska Natural Gas Pipeline. 

Sec. 1304. Renewable energy on Federal land. 

Sec. 1305. Coal bed methane study. 

Sec. 1306. Backup fuel capability study. 

Sec. 1307. Indian land rights-of-way. 

Sec. 1308. Review of Energy Policy Act of 1992 programs. 

Sec. 1309. Study of feasibility and effects of reducing use of fuel for automobiles. 

Sec. 1310. Hybrid distributed power systems. 

Sec. 1311. Mobility of scientific and technical personnel. 

Sec. 1312. National Academy of Sciences report. 

Sec. 1313. Report on research and development program evaluation methodologies. 

Sec. 1314. Transmission system monitoring study. 

Sec. 1315. Interagency review of competition in the wholesale and retail markets for electric energy. 

Sec. 1316. Study on the benefits of economic dispatch. 

Sec. 1317. Study of rapid electrical grid restoration. 

Sec. 1318. Study of distributed generation. 

Sec. 1319. Study on inventory of petroleum and natural gas storage. 

Sec. 1320. Natural gas supply shortage report. 

Sec. 1321. Split-estate Federal oil and gas leasing and development practices. 

Sec. 1322. Resolution of Federal resource development conflicts in the Powder 

River Basin. 

Sec. 1323. Study of energy efficiency standards. 

Sec. 1324. Telecommuting study. 

Sec. 1325. Oil bypass filtration technology. 

Sec. 1326. Total integrated thermal systems. 
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Sec. 1327. University collaboration. 

Sec. 1328. Hydrogen participation study. 

TITLE XIV—INCENTIVES FOR INNOVATIVE TECHNOLOGIES 

Sec. 1401. Definitions. 

Sec. 1402. Terms and conditions. 

Sec. 1403. Eligible projects. 

Sec. 1404. Authorization of appropriations. 

1 SEC. 2. DEFINITIONS. 

2 In this Act: 

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

4 means the Department of Energy. 

5 (2) INSTITUTION OF HIGHER EDUCATION.—The 

6 term ‘‘institution of higher education’’ has the 

7 meaning given the term in section 101(a) of the 

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

9 (3) NATIONAL LABORATORY.—The term ‘‘Na10 tional Laboratory’’ means any of the following lab11 oratories owned by the Department: 

12 (A) Ames Laboratory. 

13 (B) Argonne National Laboratory. 

14 (C) Brookhaven National Laboratory. 

15 (D) Fermi National Accelerator Labora16 tory. 

17 (E) Idaho National Laboratory. 

18 (F) Lawrence Berkeley National Labora19 tory. 

20 (G) Lawrence Livermore National Labora21 tory. 
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1 (H) Los Alamos National Laboratory. 

2 (I) National Energy Technology Labora3 tory. 

4 (J) National Renewable Energy Labora5 tory. 

6 (K) Oak Ridge National Laboratory. 

7 (L) Pacific Northwest National Labora8 tory. 

9 (M) Princeton Plasma Physics Laboratory. 

10 (N) Sandia National Laboratories. 

11 (O) Stanford Linear Accelerator Center. 

12 (P) Thomas Jefferson National Accelerator 

13 Facility. 

14 (4) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Energy. 

16 (5) SMALL BUSINESS CONCERN.—The term 

17 ‘‘small business concern’’ has the meaning given the 

18 term in section 3 of the Small Business Act (15 

19 U.S.C. 632). 
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1 TITLE I—ENERGY EFFICIENCY 

2 Subtitle A—Federal Programs 

3 SEC. 101. ENERGY AND WATER SAVING MEASURES IN CON4 GRESSIONAL BUILDINGS. 

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

6 Energy Conservation Policy Act (42 U.S.C. 8251 et seq.) 

7 is amended— 

8 (1) by redesignating section 551 (42 U.S.C. 

9 8259) as section 553; and 

10 (2) by inserting after section 550 (42 U.S.C. 

11 8258b) the following: 

12 ‘‘SEC. 551. ENERGY AND WATER SAVINGS MEASURES IN 

13 CONGRESSIONAL BUILDINGS. 

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

15 ‘‘(1) CONGRESSIONAL BUILDING.—The term 

16 ‘congressional building’ means a facility adminis17 tered by Congress. 

18 ‘‘(2) PLAN.—The term ‘plan’ means an energy 

19 conservation and management plan developed under 

20 subsection (b)(1). 

21 ‘‘(b) PLAN.— 

22 ‘‘(1) IN GENERAL.—The Architect of the Cap23 itol shall develop, update, and implement a cost-ef24 fective energy conservation and management plan 

25 for congressional buildings to meet the energy per-
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1 formance requirements for Federal buildings estab2 lished under section 543(a)(1). 

3 ‘‘(2) REQUIREMENTS.—The plan shall in4 clude— 

5 ‘‘(A) a description of the life-cycle cost 

6 analysis used to determine the cost-effectiveness 

7 of proposed energy efficiency projects; 

8 ‘‘(B) a schedule that ensures that complete 

9 energy surveys of all congressional buildings are 

10 conducted every 5 years to determine the cost 

11 and payback period of energy and water con12 servation measures; 

13 ‘‘(C) a strategy for installation of life-cycle 

14 cost-effective energy and water conservation 

15 measures; 

16 ‘‘(D) the results of a study of the costs 

17 and benefits of installation of submetering in 

18 congressional buildings; and 

19 ‘‘(E) information packages and ‘how-to’ 

20 guides for each Member and employing author21 ity of Congress that describe simple and cost22 effective methods to save energy and taxpayer 

23 dollars in congressional buildings. 

24 ‘‘(3) SUBMISSION TO CONGRESS.—Not later 

25 than 180 days after the date of enactment of the 
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1 Energy Policy Act of 2005, the Architect of the Cap2 itol shall submit to Congress the plan developed 

3 under paragraph (1). 

4 ‘‘(c) ANNUAL REPORT.— 

5 ‘‘(1) IN GENERAL.—The Architect of the Cap6 itol shall annually submit to Congress a report on 

7 congressional energy management and conservation 

8 programs carried out for congressional buildings 

9 under this section. 

10 ‘‘(2) REQUIREMENTS.—A report submitted 

11 under paragraph (1) shall describe in detail— 

12 ‘‘(A) energy expenditures and savings esti13 mates for each congressional building; 

14 ‘‘(B) any energy management and con15 servation projects for congressional buildings; 

16 and 

17 ‘‘(C) future priorities to ensure compliance 

18 with this section.’’. 

19 (b) CONFORMING AMENDMENT.—The table of con20 tents of the National Energy Conservation Policy Act is 

21 amended— 

22 (1) by redesignating the item relating to section 

23 551 as section 553; and 

24 (2) by inserting after the item relating to sec25 tion 550 the following: 

‘‘Sec. 551. Energy and water savings measures in congressional buildings.’’. 
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1 (c) REPEAL.—Section 310 of the Legislative Branch 

2 Appropriations Act, 1999 (2 U.S.C. 1815), is repealed. 

3 (d) ENERGY INFRASTRUCTURE.— 

4 (1) IN GENERAL.—The Architect of the Capitol, 

5 building on the Master Plan Study for the Capitol 

6 complex completed in July 2000, shall commission a 

7 study to evaluate the energy infrastructure of the 

8 Capitol complex to determine how to augment the 

9 infrastructure to become more energy efficient— 

10 (A) by using unconventional and renewable 

11 energy resources; and 

12 (B) in a manner that would enable the 

13 Capitol complex to have reliable utility service 

14 in the event of power fluctuations, shortages, or 

15 outages. 

16 (2) AUTHORIZATION OF APPROPRIATIONS.— 

17 There is authorized to be appropriated to the Archi18 tect of the Capitol to carry out this section 

19 $2,000,000 for each of fiscal years 2006 through 

20 2010. 

21 SEC. 102. ENERGY MANAGEMENT REQUIREMENTS. 

22 (a) ENERGY REDUCTION GOALS.—Section 543(a) of 

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

24 8253(a)) is amended— 
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1 (1) in paragraph (1), by striking ‘‘Subject to’’ 

2 and all that follows and inserting ‘‘(A) Subject to 

3 paragraph (2), each agency shall apply energy con4 servation measures to, and shall improve the design 

5 for the construction of, the Federal buildings of the 

6 agency (including each industrial or laboratory facil7 ity) so that the energy consumption for each gross 

8 square foot of the Federal buildings of the agency 

9 for fiscal years 2006 through 2015 is reduced, as 

10 compared with the energy consumption for each 

11 gross square foot of the Federal buildings of the 

12 agency for fiscal year 2004, by the percentage speci13 fied in the following table: 

‘‘Fiscal Year Percentage reduction 

2006 ..................................................................................... 2

2007 ..................................................................................... 4

2008 ..................................................................................... 6

2009 ..................................................................................... 8

2010 ..................................................................................... 10

2011 ..................................................................................... 12

2012 ..................................................................................... 14

2013 ..................................................................................... 16

2014 ..................................................................................... 18

2015 ..................................................................................... 20. 

14 ‘‘(B) The energy reduction goals and baseline estab15 lished in subparagraph (A) supersede— 

16 ‘‘(i) all goals and baselines under this para17 graph in effect on the day before the date of enact18 ment of this subparagraph; and 

19 ‘‘(ii) any related reporting requirements.’’; and 

20 (2) by adding at the end the following: 
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1 ‘‘(3) Not later than December 31, 2013, the Sec2 retary shall— 

3 ‘‘(A) review the results of the implementation of 

4 the energy performance requirement established 

5 under paragraph (1); and 

6 ‘‘(B) submit to Congress recommendations con7 cerning energy performance requirements for each of 

8 fiscal years 2015 through 2024.’’. 

9 (b) EXCLUSIONS; REVIEW BY SECRETARY; CRI10 TERIA.—Section 543(c) of the National Energy Conserva11 tion Policy Act (42 U.S.C. 8253(c)) is amended— 

12 (1) in paragraph (1), by striking ‘‘An agency 

13 may exclude’’ and all that follows and inserting ‘‘(A) 

14 An agency may exclude, from the energy perform15 ance requirement for a fiscal year established under 

16 subsection (a) and the energy management require17 ment established under subsection (b), any Federal 

18 building or collection of Federal buildings, if the 

19 head of the agency finds that— 

20 ‘‘(i) compliance with those requirements would 

21 be impracticable; 

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

23 all federally required energy management reports; 

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

25 the energy efficiency requirements of this Act, the 
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1 Energy Policy Act of 1992 (42 U.S.C. 13201 et 

2 seq.), Executive orders, and other Federal law; and 

3 ‘‘(iv) the agency has implemented all prac4 ticable, life-cycle cost-effective projects with respect 

5 to the Federal building or collection of Federal 

6 buildings to be excluded. 

7 ‘‘(B) A finding of impracticability under subpara8 graph (A)(i) shall be based on— 

9 ‘‘(i) the energy intensiveness of activities car10 ried out in the Federal building or collection of Fed11 eral buildings; or 

12 ‘‘(ii) the fact that the Federal building or col13 lection of Federal buildings is used in the perform14 ance of a national security function.’’; 

15 (2) in paragraph (2)— 

16 (A) in the second sentence— 

17 (i) by striking ‘‘impracticability stand18 ards’’ and inserting ‘‘standards for exclu19 sion’’; and 

20 (ii) by striking ‘‘a finding of imprac21 ticability’’ and inserting ‘‘the exclusion’’; 

22 and 

23 (B) in the third sentence, by striking ‘‘en24 ergy consumption requirements’’ and inserting 
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1 ‘‘requirements of subsections (a) and (b)(1)’’; 

2 and 

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

4 ‘‘(3) Not later than 180 days after the date of enact5 ment of this paragraph, the Secretary shall issue guide6 lines that establish criteria for exclusions under paragraph 

7 (1).’’. 

8 (c) RETENTION OF ENERGY AND WATER SAVINGS.— 

9 Section 546 of the National Energy Conservation Policy 

10 Act (42 U.S.C. 8256) is amended— 

11 (1) in subsection (d)(2)(G), by inserting ‘‘of the 

12 Energy Policy Act of 1992 (42 U.S.C. 8262e)’’ after 

13 ‘‘159’’; and 

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

15 ‘‘(e) RETENTION OF ENERGY AND WATER SAV16 INGS.—(1) An agency may retain any funds appropriated 

17 to the agency for energy expenditures, water expenditures, 

18 or wastewater treatment expenditures, at buildings subject 

19 to the requirements of subsections (a) and (b) of section 

20 543, that are not expended because of energy savings or 

21 water savings. 

22 ‘‘(2) Except as otherwise provided by law, funds de23 scribed in paragraph (1) may be used by an agency only 

24 for energy efficiency, water conservation, or unconven25 tional and renewable energy resources projects.’’. 
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1 (d) REPORTS.—Section 548(b) of the National En2 ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 

3 amended— 

4 (1) in the subsection heading, by inserting 

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

6 (2) by inserting ‘‘President and’’ before ‘‘Con7 gress’’. 

8 (e) CONFORMING AMENDMENT.—Section 550(d) of 

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

10 8258b(d)) is amended in the second sentence by striking 

11 ‘‘the 20 percent reduction goal established under section 

12 543(a) of the National Energy Conservation Policy Act 

13 (42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy 

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

15 SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNT16 ABILITY. 

17 Section 543 of the National Energy Conservation 

18 Policy Act (42 U.S.C. 8253) is amended by adding at the 

19 end the following: 

20 ‘‘(e) METERING OF ENERGY USE.—(1)(A) Not later 

21 than October 1, 2012, in accordance with guidelines estab22 lished by the Secretary under paragraph (2), each Federal 

23 building shall, for the purposes of efficient use of energy 

24 and reduction in the cost of electricity used in the build25 ing, be metered or submetered. 
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1 ‘‘(B) Each agency shall use, to the maximum extent 

2 practicable, advanced meters or advanced metering devices 

3 that provide data at least daily on, and that measure at 

4 least hourly, consumption of electricity in the Federal 

5 buildings of the agency. 

6 ‘‘(C) The data shall be— 

7 ‘‘(i) incorporated into Federal energy tracking 

8 systems; and 

9 ‘‘(ii) made available to Federal facility energy 

10 managers. 

11 ‘‘(2)(A) Not later than 180 days after the date of 

12 enactment of this subsection, the Secretary (in consulta13 tion with the Secretary of Defense, the Administrator of 

14 General Services, representatives from the metering indus15 try, utility industry, energy services industry, energy effi16 ciency industry, energy efficiency advocacy organizations, 

17 national laboratories, and universities, and Federal facility 

18 energy managers) shall establish guidelines for agencies 

19 to carry out paragraph (1). 

20 ‘‘(B) The guidelines shall— 

21 ‘‘(i) take into consideration— 

22 ‘‘(I) the cost of metering and submetering 

23 and the reduced cost of operation and mainte24 nance expected to result from metering and 

25 submetering; 
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1 ‘‘(II) the extent to which metering and 

2 submetering are expected to result in increased 

3 potential for energy management, increased po4 tential for energy savings and energy efficiency 

5 improvement, and cost and energy savings be6 cause of utility contract aggregation; and 

7 ‘‘(III) the measurement and verification 

8 protocols of the Department of Energy; 

9 ‘‘(ii) include recommendations concerning the 

10 amount of funds and the number of trained per11 sonnel necessary to gather and use the metering in12 formation to track and reduce energy use; 

13 ‘‘(iii) establish priorities for types and locations 

14 of buildings to be metered and submetered based on 

15 cost-effectiveness and a schedule of 1 or more dates, 

16 not later than 1 year after the date of issuance of 

17 the guidelines, on which paragraph (1) takes effect; 

18 and 

19 ‘‘(iv) establish exclusions from the requirements 

20 of paragraph (1) based on the de minimis quantity 

21 of energy use of a Federal building, industrial proc22 ess, or structure. 

23 ‘‘(3) Not later than 180 days after the date on which 

24 guidelines are established under paragraph (2), in a report 

25 submitted by an agency under section 548(a), the agency 
23 

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1 shall submit to the Secretary a plan describing the manner 

2 in which the agency will implement paragraph (1), includ3 ing— 

4 ‘‘(A) the manner in which the agency will des5 ignate personnel primarily responsible for carrying 

6 out that implementation; and 

7 ‘‘(B) demonstration by the agency, complete 

8 with documentation, of any finding that the use of 

9 advanced meters or advanced metering devices de10 scribed in paragraph (1) is not practicable.’’. 

11 SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PROD12 UCTS. 

13 (a) REQUIREMENTS.—Part 3 of title V of the Na14 tional Energy Conservation Policy Act (42 U.S.C. 8251 

15 et seq.) (as amended by section 101(a)) is amended by 

16 inserting after section 551 the following: 

17 ‘‘SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFI18 CIENT PRODUCTS. 

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

20 ‘‘(1) The term ‘Energy Star product’ means a 

21 product that is rated for energy efficiency under an 

22 Energy Star program. 

23 ‘‘(2) The term ‘Energy Star program’ means 

24 the program established by section 324A of the En25 ergy Policy and Conservation Act. 
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1 ‘‘(3) The term ‘executive agency’ has the mean2 ing given the term in section 4 of the Office of Fed3 eral Procurement Policy Act (41 U.S.C. 403). 

4 ‘‘(4) The term ‘FEMP designated product’ 

5 means a product that is designated under the Fed6 eral Energy Management Program of the Depart7 ment of Energy as being among the highest 25 per8 cent of equivalent products for energy efficiency. 

9 ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD10 UCTS.—(1) Except as provided in paragraph (2), to meet 

11 the requirements of an executive agency for an energy con12 suming product, the head of the executive agency shall 

13 procure— 

14 ‘‘(A) an Energy Star product; or 

15 ‘‘(B) a FEMP designated product. 

16 ‘‘(2) The head of an executive agency shall not be 

17 required to comply with paragraph (1) if the head of the 

18 executive agency specifies in writing that— 

19 ‘‘(A) taking into account energy cost savings, 

20 an Energy Star product or FEMP designated prod21 uct is not cost-effective over the life of the product; 

22 or 

23 ‘‘(B) no Energy Star product or FEMP des24 ignated product is reasonably available that meets 

25 the functional requirements of the executive agency. 
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1 ‘‘(3) The head of an executive agency shall incor2 porate criteria for energy efficiency that are consistent 

3 with the criteria used for rating Energy Star products and 

4 FEMP designated products into— 

5 ‘‘(A) the specifications for any procurements in6 volving energy consuming products and systems, in7 cluding— 

8 ‘‘(i) guide specifications; 

9 ‘‘(ii) project specifications; and 

10 ‘‘(iii) construction, renovation, and services 

11 contracts that include the provision of energy 

12 consuming products and systems; and 

13 ‘‘(B) the factors for the evaluation of offers re14 ceived for the procurement. 

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

16 FEDERAL CATALOGS.—(1) Any inventory or listing of 

17 products by the General Services Administration or the 

18 Defense Logistics Agency shall clearly identify and promi19 nently display Energy Star products and FEMP des20 ignated products. 

21 ‘‘(2)(A) Except as provided in subparagraph (B), the 

22 General Services Administration or the Defense Logistics 

23 Agency shall supply only Energy Star products or FEMP 

24 designated products for all product categories covered by 
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1 the Energy Star program or the Federal Energy Manage2 ment Program. 

3 ‘‘(B) Subparagraph (A) shall not apply if an agency 

4 ordering a product specifies in writing that— 

5 ‘‘(i) taking into account energy cost savings, no 

6 Energy Star product or FEMP designated product 

7 is cost-effective for the intended application over the 

8 life of the product; or 

9 ‘‘(ii) no Energy Star product or FEMP des10 ignated product is available to meet the functional 

11 requirements of the ordering agency. 

12 ‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of an 

13 electric motor of 1 to 500 horsepower, an executive agency 

14 shall select only a premium efficient motor that meets the 

15 standard established by the Secretary under paragraph 

16 (2). 

17 ‘‘(2) Not later than 120 days after the date of enact18 ment of this subsection and after considering the rec19 ommendations of associated electric motor manufacturers 

20 and energy efficiency groups, the Secretary shall establish 

21 a standard for premium efficient motors. 

22 ‘‘(3)(A) Each Federal agency is encouraged to take 

23 actions (such as appropriate cleaning and maintenance) 

24 to maximize the efficiency of air conditioning and refrig-
27 

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1 eration equipment, including the use of a system treat2 ment or additive that— 

3 ‘‘(i) would reduce the electricity consumed by 

4 air conditioning and refrigeration equipment; and 

5 ‘‘(ii) meets the criteria specified in subpara6 graph (B). 

7 ‘‘(B) A system treatment or additive referred to in 

8 subparagraph (A) shall be— 

9 ‘‘(i) determined by the Secretary to be effective 

10 in increasing the efficiency of air conditioning and 

11 refrigeration equipment without having an adverse 

12 impact on— 

13 ‘‘(I) air conditioning and refrigeration per14 formance (including cooling capacity); or 

15 ‘‘(II) the useful life of the equipment; 

16 ‘‘(ii) determined by the Administrator of the 

17 Environmental Protection Agency to be environ18 mentally safe; and 

19 ‘‘(iii) shown, in tests conducted by the National 

20 Institute of Standards and Technology, in accord21 ance with Department of Energy test procedures, to 

22 increase the seasonal energy efficiency ratio (SEER) 

23 or energy efficiency ratio (EER) without having any 

24 adverse impact on the system, system components, 
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1 the refrigerant or lubricant, or other materials in the 

2 system. 

3 ‘‘(4) The results of the tests described in paragraph 

4 (3)(B)(iii) shall be published in the Federal Register for 

5 public review and comment. 

6 ‘‘(5) For purposes of this subsection, a hardware de7 vice or primary refrigerant shall not be considered an ad8 ditive. 

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

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

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

12 (b) CONFORMING AMENDMENT.—The table of con13 tents of the National Energy Conservation Policy Act (as 

14 amended by section 101(b)) is amended by inserting after 

15 the item relating to section 551 the following: 

‘‘Sec. 552. Federal procurement of energy efficient products.’’. 

16 SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

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

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

19 8287(c)) is amended by striking ‘‘2006’’ and inserting 

20 ‘‘2016’’. 

21 (b) EXTENSION OF AUTHORITY.—Any energy sav22 ings performance contract entered into under section 801 

23 of the National Energy Conservation Policy Act (42 

24 U.S.C. 8287) after October 1, 2003, and before the date 
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1 of enactment of this Act, shall be considered to have been 

2 entered into under that section. 

3 SEC. 106. VOLUNTARY COMMITMENTS TO REDUCE INDUS4 TRIAL ENERGY INTENSITY. 

5 (a) DEFINITION OF ENERGY INTENSITY.—In this 

6 section, the term ‘‘energy intensity’’ means the primary 

7 energy consumed for each unit of physical output in an 

8 industrial process. 

9 (b) VOLUNTARY AGREEMENTS.—The Secretary may 

10 enter into voluntary agreements with 1 or more persons 

11 in industrial sectors that consume significant quantities 

12 of primary energy for each unit of physical output to re13 duce the energy intensity of the production activities of 

14 the persons. 

15 (c) GOAL.—Voluntary agreements under this section 

16 shall have as a goal the reduction of energy intensity by 

17 not less than 2.5 percent each year during the period of 

18 calendar years 2007 through 2016. 

19 (d) RECOGNITION.—The Secretary, in cooperation 

20 with other appropriate Federal agencies, shall develop 

21 mechanisms to recognize and publicize the achievements 

22 of participants in voluntary agreements under this section. 

23 (e) TECHNICAL ASSISTANCE.—A person that enters 

24 into an agreement under this section and continues to 

25 make a good faith effort to achieve the energy efficiency 
30 

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1 goals specified in the agreement shall be eligible to receive 

2 from the Secretary a grant or technical assistance, as ap3 propriate, to assist in the achievement of those goals. 

4 (f) REPORT.—Not later than each of June 30, 2012, 

5 and June 30, 2017, the Secretary shall submit to Con6 gress a report that— 

7 (1) evaluates the success of the voluntary agree8 ments under this section; and 

9 (2) provides independent verification of a sam10 ple of the energy savings estimates provided by par11 ticipating firms. 

12 SEC. 107. FEDERAL BUILDING PERFORMANCE STANDARDS. 

13 Section 305(a) of the Energy Conservation and Pro14 duction Act (42 U.S.C. 6834(a)) is amended— 

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

16 Model Energy Code, 1992 (in the case of residential 

17 buildings) or ASHRAE Standard 90.1–1989’’ and 

18 inserting ‘‘the 2004 International Energy Conserva19 tion Code (in the case of residential buildings) or 

20 ASHRAE Standard 90.1–2004’’; and 

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

22 ‘‘(3)(A) Not later than 1 year after the date of enact23 ment of this paragraph, the Secretary shall establish, by 

24 rule, revised Federal building energy efficiency perform25 ance standards that require that— 
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1 ‘‘(i) if life-cycle cost-effective for new Federal 

2 buildings— 

3 ‘‘(I) the buildings be designed to achieve 

4 energy consumption levels that are at least 30 

5 percent below the levels established in the 

6 version of the ASHRAE Standard or the Inter7 national Energy Conservation Code, as appro8 priate, that is in effect as of the date of enact9 ment of this paragraph; and 

10 ‘‘(II) sustainable design principles are ap11 plied to the siting, design, and construction of 

12 all new and replacement buildings; and 

13 ‘‘(ii) if water is used to achieve energy effi14 ciency, water conservation technologies shall be ap15 plied to the extent that the technologies are life-cycle 

16 cost-effective. 

17 ‘‘(B) Not later than 1 year after the date of approval 

18 of each subsequent revision of the ASHRAE Standard or 

19 the International Energy Conservation Code, as appro20 priate, the Secretary shall determine, based on the cost21 effectiveness of the requirements under the amendment, 

22 whether the revised standards established under this para23 graph should be updated to reflect the amendment. 

24 ‘‘(C) In the budget request of the Federal agency for 

25 each fiscal year and each report submitted by the Federal 
32 

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1 agency under section 548(a) of the National Energy Con2 servation Policy Act (42 U.S.C. 8258(a)), the head of each 

3 Federal agency shall include— 

4 ‘‘(i) a list of all new Federal buildings owned, 

5 operated, or controlled by the Federal agency; and 

6 ‘‘(ii) a statement specifying whether the Federal 

7 buildings meet or exceed the revised standards es8 tablished under this paragraph.’’. 

9 SEC. 108. INCREASED USE OF RECOVERED MINERAL COM10 PONENT IN FEDERALLY FUNDED PROJECTS 

11 INVOLVING PROCUREMENT OF CEMENT OR 

12 CONCRETE. 

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

14 Disposal Act (42 U.S.C. 6961 et seq.) is amended by add15 ing at the end the following: 

16 ‘‘INCREASED USE OF RECOVERED MINERAL COMPONENT

17 IN FEDERALLY FUNDED PROJECTS INVOLVING PRO18 CUREMENT OF CEMENT OR CONCRETE

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

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

21 means— 

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

23 ‘‘(B) the head of any other Federal agency 

24 that, on a regular basis, procures, or provides 

25 Federal funds to pay or assist in paying the 
33 

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1 cost of procuring, material for cement or con2 crete projects. 

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

4 term ‘cement or concrete project’ means a project 

5 for the construction or maintenance of a highway or 

6 other transportation facility or a Federal, State, or 

7 local government building or other public facility 

8 that— 

9 ‘‘(A) involves the procurement of cement 

10 or concrete; and 

11 ‘‘(B) is carried out, in whole or in part, 

12 using Federal funds. 

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

14 term ‘recovered mineral component’ means— 

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

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

17 ‘‘(C) any other waste material or byprod18 uct recovered or diverted from solid waste that 

19 the Administrator, in consultation with an 

20 agency head, determines should be treated as 

21 recovered mineral component under this section 

22 for use in cement or concrete projects paid for, 

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

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

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

4 as are necessary to implement fully all procurement 

5 requirements and incentives in effect as of the date 

6 of enactment of this section (including guidelines 

7 under section 6002) that provide for the use of ce8 ment and concrete incorporating recovered mineral 

9 component in cement or concrete projects. 

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

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

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

15 used only minimally. 

16 ‘‘(3) FEDERAL PROCUREMENT REQUIRE17 MENTS.—The Administrator and each agency head 

18 shall carry out this subsection in accordance with 

19 section 6002. 

20 ‘‘(c) FULL IMPLEMENTATION STUDY.— 

21 ‘‘(1) IN GENERAL.—The Administrator, in co22 operation with the Secretary of Transportation and 

23 the Secretary of Energy, shall conduct a study to de24 termine the extent to which procurement require25 ments, when fully implemented in accordance with 
35 

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1 subsection (b), may realize energy savings and envi2 ronmental benefits attainable with substitution of re3 covered mineral component in cement used in ce4 ment or concrete projects. 

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

6 shall— 

7 ‘‘(A) quantify— 

8 ‘‘(i) the extent to which recovered 

9 mineral components are being substituted 

10 for Portland cement, particularly as a re11 sult of procurement requirements; and 

12 ‘‘(ii) the energy savings and environ13 mental benefits associated with the substi14 tution; 

15 ‘‘(B) identify all barriers in procurement 

16 requirements to greater realization of energy 

17 savings and environmental benefits, including 

18 barriers resulting from exceptions from the law; 

19 and 

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

21 achieve greater substitution of recovered min22 eral component in types of cement or concrete 

23 projects for which recovered mineral compo24 nents historically have not been used or have 

25 been used only minimally; 
36 

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1 ‘‘(ii) evaluate the feasibility of establishing 

2 guidelines or standards for optimized substi3 tution rates of recovered mineral component in 

4 those cement or concrete projects; and 

5 ‘‘(iii) identify any potential environmental 

6 or economic effects that may result from great7 er substitution of recovered mineral component 

8 in those cement or concrete projects. 

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

10 the date of enactment of this section, the Adminis11 trator shall submit to Congress a report on the 

12 study. 

13 ‘‘(d) ADDITIONAL PROCUREMENT REQUIREMENTS.— 

14 Unless the study conducted under subsection (c) identifies 

15 any effects or other problems described in subsection 

16 (c)(2)(C)(iii) that warrant further review or delay, the Ad17 ministrator and each agency head shall, not later than 1 

18 year after the date on which the report under subsection 

19 (c)(3) is submitted, take additional actions under this Act 

20 to establish procurement requirements and incentives that 

21 provide for the use of cement and concrete with increased 

22 substitution of recovered mineral component in the con23 struction and maintenance of cement or concrete 

24 projects— 
37 

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1 ‘‘(1) to realize more fully the energy savings 

2 and environmental benefits associated with increased 

3 substitution; and 

4 ‘‘(2) to eliminate barriers identified under sub5 section (c)(2)(B). 

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

7 affects the requirements of section 6002 (including the 

8 guidelines and specifications for implementing those re9 quirements).’’. 

10 (b) CONFORMING AMENDMENT.—The table of con11 tents of the Solid Waste Disposal Act is amended by add12 ing after the item relating to section 6004 the following: 

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

projects involving procurement of cement or concrete.’’. 

13 Subtitle B—Energy Assistance and 

14 State Programs 

15 SEC. 121. WEATHERIZATION ASSISTANCE. 

16 Section 422 of the Energy Conservation and Produc17 tion Act (42 U.S.C. 6872) is amended by striking ‘‘for 

18 fiscal years 1999 through 2003 such sums as may be nec19 essary’’ and inserting ‘‘$325,000,000 for fiscal year 2006, 

20 $400,000,000 for fiscal year 2007, and $500,000,000 for 

21 fiscal year 2008’’. 
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1 SEC. 122. STATE ENERGY PROGRAMS. 

2 (a) STATE ENERGY CONSERVATION PLANS.—Section 

3 362 of the Energy Policy and Conservation Act (42 U.S.C. 

4 6322) is amended by adding at the end the following: 

5 ‘‘(g)(1) The Secretary shall, at least once every 3 

6 years, invite the Governor of each State to review and, 

7 if necessary, revise the energy conservation plan of the 

8 State submitted under subsection (b) or (e). 

9 ‘‘(2) A review conducted under paragraph (1) 

10 should— 

11 ‘‘(A) consider the energy conservation plans of 

12 other States within the region; and 

13 ‘‘(B) identify opportunities and actions carried 

14 out in pursuit of common energy conservation 

15 goals.’’. 

16 (b) STATE ENERGY EFFICIENCY GOALS.—Section 

17 364 of the Energy Policy and Conservation Act (42 U.S.C. 

18 6324) is amended to read as follows: 

19 ‘‘STATE ENERGY EFFICIENCY GOALS

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

21 respect to which assistance is made available under this 

22 part on or after the date of enactment of the Energy Pol23 icy Act of 2005— 

24 ‘‘(1) shall contain a goal, consisting of an im25 provement of 25 percent or more in the efficiency of 
39 

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1 use of energy in the State concerned in calendar 

2 year 2012 as compared to calendar year 1992; and 

3 ‘‘(2) may contain interim 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 fiscal years 2006 and 

9 2007 and $125,000,000 for fiscal year 2008’’. 

10 SEC. 123. 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 (as added by section 131(a)). 

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 
40 

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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 
41 

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1 out subsection (d) an amount equal to the product 

2 obtained by multiplying— 

3 (A) the amount made available under sub4 section (f) for the fiscal year; and 

5 (B) by the ratio that— 

6 (i) the population of the State in the 

7 most recent calendar year for which data 

8 are available; bears to 

9 (ii) the total population of all eligible 

10 States in that calendar year. 

11 (2) MINIMUM ALLOCATIONS.—For each fiscal 

12 year, the amounts allocated under this subsection 

13 shall be adjusted proportionately so that no eligible 

14 State is allocated a sum that is less than such min15 imum amount as shall be determined by the Sec16 retary. 

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

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

19 to pay not more than 50 percent of the cost of establishing 

20 and carrying out a State program. 

21 (e) ISSUANCE OF REBATES.— 

22 (1) IN GENERAL.—A rebate may be provided to 

23 a residential consumer that meets the requirements 

24 of the State program. 
42 

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1 (2) AMOUNT.—The amount of a rebate shall be 

2 determined by the State energy office, taking into 

3 consideration— 

4 (A) the amount of the allocation to the 

5 State energy office under subsection (c); 

6 (B) the amount of any Federal or State 

7 tax incentive available for the purchase of the 

8 residential Energy Star product; and 

9 (C) the difference between— 

10 (i) the cost of the residential Energy 

11 Star product; and 

12 (ii) the cost of an appliance that is 

13 not a residential Energy Star product, but 

14 is of the same type as, and is the nearest 

15 capacity, performance, and other relevant 

16 characteristics (as determined by the State 

17 energy office) to, the residential Energy 

18 Star product. 

19 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to the Secretary to carry 

21 out this section $50,000,000 for each of fiscal years 2006 

22 through 2010. 

23 SEC. 124. ENERGY EFFICIENT PUBLIC BUILDINGS. 

24 (a) GRANTS.—The Secretary may make grants to the 

25 State agency responsible for developing State energy con-
43 

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1 servation plans under section 362 of the Energy Policy 

2 and Conservation Act (42 U.S.C. 6322), or a State agency 

3 designated by the Governor of the State, to assist units 

4 of local government in the State in improving the energy 

5 efficiency of public buildings and facilities through— 

6 (1) construction of new energy efficient public 

7 buildings that use at least 30 percent less energy 

8 than a comparable public building constructed in 

9 compliance with standards prescribed in— 

10 (A) the most recent version of the Inter11 national Energy Conservation Code; or 

12 (B) a similar State code intended to 

13 achieve substantially equivalent efficiency levels; 

14 or 

15 (2) renovation of existing public buildings to 

16 achieve reductions in energy use of at least 30 per17 cent as compared to the baseline energy use in the 

18 buildings before renovation, assuming a 3-year, 

19 weather-normalized average for calculating the base20 line. 

21 (b) ADMINISTRATION.—State energy offices receiving 

22 grants under this section shall— 

23 (1) maintain any records and evidence of com24 pliance that the Secretary may require; and 
44 

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1 (2) to encourage planning, financing, and de2 sign of energy efficient public buildings by units of 

3 local government— 

4 (A) develop and distribute information and 

5 materials; and 

6 (B) conduct programs to provide technical 

7 services and assistance. 

8 (c) AUTHORIZATION OF APPROPRIATIONS.— 

9 (1) IN GENERAL.—There is authorized to be 

10 appropriated to the Secretary to carry out this sec11 tion $30,000,000 for each of fiscal years 2006 

12 through 2010. 

13 (2) ADMINISTRATIVE EXPENSES.—Not more 

14 than 10 percent of amounts made available under 

15 paragraph (1) shall be used for administrative ex16 penses. 

17 SEC. 125. LOW INCOME COMMUNITY ENERGY EFFICIENCY 

18 PILOT PROGRAM. 

19 (a) DEFINITION OF INDIAN TRIBE.—In this section, 

20 the term ‘‘Indian tribe’’ has the meaning given the term 

21 in section 4 of the Indian Self-Determination and Edu22 cation Assistance Act (25 U.S.C. 450b). 

23 (b) GRANTS.— 

24 (1) IN GENERAL.—The Secretary may provide 

25 grants, on a competitive basis, to units of local gov-
45 

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1 ernment, private or nonprofit community develop2 ment organizations, and economic development enti3 ties of Indian tribes— 

4 (A) to improve energy efficiency; 

5 (B) to identify and develop alternative, re6 newable, and distributed energy supplies; and 

7 (C) to increase energy conservation in low8 income rural and urban communities. 

9 (2) ELIGIBLE ACTIVITIES.—The following ac10 tivities are eligible for grants under paragraph (1): 

11 (A) Investments that develop alternative, 

12 renewable, and distributed energy supplies. 

13 (B) Energy efficiency projects and energy 

14 conservation programs. 

15 (C) Studies and other activities that im16 prove energy efficiency in low-income rural and 

17 urban communities. 

18 (D) Planning and development assistance 

19 for increasing the energy efficiency of buildings 

20 and facilities. 

21 (E) Technical and financial assistance to 

22 units of local government and private entities to 

23 develop new renewable and distributed sources 

24 of power or combined heat and power genera25 tion. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

2 authorized to be appropriated to the Secretary to carry 

3 out this section $20,000,000 for each of fiscal years 2006 

4 through 2010. 

5 SEC. 126. STATE TECHNOLOGIES ADVANCEMENT COLLABO6 RATIVE. 

7 (a) IN GENERAL.—The Secretary, in cooperation 

8 with the States, shall establish a cooperative program for 

9 research, development, demonstration, and deployment of 

10 technologies in which there is a common Federal and State 

11 energy efficiency, renewable energy, and fossil energy in12 terest, to be known as the ‘‘State Technologies Advance13 ment Collaborative’’ (referred to in this section as the 

14 ‘‘Collaborative’’). 

15 (b) DUTIES.—The Collaborative shall— 

16 (1) leverage Federal and State funding through 

17 cost-shared activity; 

18 (2) reduce redundancies in Federal and State 

19 funding; and 

20 (3) create multistate projects to be awarded 

21 through a competitive process. 

22 (c) ADMINISTRATION.—The Collaborative shall be 

23 administered through an agreement between the Depart24 ment and appropriate State-based organizations. 
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1 (d) FUNDING SOURCES.—Funding for the Collabo2 rative may be provided from— 

3 (1) amounts specifically appropriated for the 

4 Collaborative; or 

5 (2) amounts that may be allocated from other 

6 appropriations without changing the purpose for 

7 which the amounts are appropriated. 

8 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to carry out this section such sums as are 

10 necessary for each of fiscal years 2006 through 2010. 

11 SEC. 127. MODEL BUILDING ENERGY CODE COMPLIANCE 

12 GRANT PROGRAM. 

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

14 program to provide grants to each State that the Sec15 retary determines, with respect to new buildings in the 

16 State, achieves at least a 90-percent rate of compliance 

17 (based on energy performance) with the most recent model 

18 building energy codes. 

19 (b) GUIDELINES.—Not later than 180 days after the 

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

21 guidelines that standardize criteria by which a State that 

22 seeks to receive a grant under this section may— 

23 (1) verify compliance with applicable model 

24 building energy codes; and 
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1 (2) demonstrate eligibility to receive a grant 

2 under this section. 

3 (c) LOCAL GOVERNMENT CODES.—In the case of a 

4 State in which building energy codes are established by 

5 local governments— 

6 (1) a local government may— 

7 (A) apply for a grant under this section; 

8 and 

9 (B) verify compliance and demonstrate eli10 gibility for the grant under subsection (b); and 

11 (2) if the Secretary determines that the local 

12 government is eligible to receive a grant, the Sec13 retary may provide a grant to the local government. 

14 (d) USE OF FUNDS.—Funds from a grant provided 

15 under this section may be used only to carry out activities 

16 relating to the implementation of building energy codes 

17 and building practices that exceed efficiency requirements 

18 of the most recent model building energy codes. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.— 

20 (1) IN GENERAL.—There is authorized to be 

21 appropriated to carry out this section $25,000,000 

22 for each of fiscal years 2006 through 2010. 

23 (2) SET ASIDE.—Of the amounts made avail24 able under paragraph (1), the Secretary may use not 

25 more than $500,000 for each fiscal year— 
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1 (A) to develop compliance guidelines; 

2 (B) to train State and local officials; and 

3 (C) to administer grants provided under 

4 this section. 

5 Subtitle C—Energy Efficient 

6 Products 

7 SEC. 131. ENERGY STAR PROGRAM. 

8 (a) IN GENERAL.—The Energy Policy and Conserva9 tion Act is amended by inserting after section 324 (42 

10 U.S.C. 6294) the following: 

11 ‘‘ENERGY STAR PROGRAM

12 ‘‘SEC. 324A. (a) IN GENERAL.—There is established 

13 within the Department of Energy and the Environmental 

14 Protection Agency a voluntary program to identify and 

15 promote energy-efficient products and buildings in order 

16 to reduce energy consumption, improve energy security, 

17 and reduce pollution through voluntary labeling of, or 

18 other forms of communication about, products and build19 ings that meet the highest energy conservation standards. 

20 ‘‘(b) DIVISION OF RESPONSIBILITIES.—Responsibil21 ities under the program shall be divided between the De22 partment of Energy and the Environmental Protection 

23 Agency in accordance with the terms of applicable agree24 ments between those agencies. 

25 ‘‘(c) DUTIES.—The Administrator and the Secretary 

26 shall— 
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1 ‘‘(1) promote Energy Star compliant tech2 nologies as the preferred technologies in the market3 place for— 

4 ‘‘(A) achieving energy efficiency; and 

5 ‘‘(B) reducing pollution; 

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

7 Energy Star label, including by providing special 

8 outreach to small businesses; 

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

10 label; 

11 ‘‘(4) regularly update Energy Star product cri12 teria for product categories; 

13 ‘‘(5) solicit comments from interested parties 

14 prior to establishing or revising an Energy Star 

15 product category, specification, or criterion (or prior 

16 to effective dates for any such product category, 

17 specification, or criterion); 

18 ‘‘(6) on adoption of a new or revised product 

19 category, specification, or criterion, provide reason20 able notice to interested parties of any changes (in21 cluding effective dates) in product categories, speci22 fications, or criteria, along with— 

23 ‘‘(A) an explanation of the changes; and 

24 ‘‘(B) as appropriate, responses to com25 ments submitted by interested parties; and 
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1 ‘‘(7) provide appropriate lead time (which shall 

2 be 270 days, unless the Agency or Department 

3 specifies otherwise) prior to the applicable effective 

4 date for a new or a significant revision to a product 

5 category, specification, or criterion, taking into ac6 count the timing requirements of the manufacturing, 

7 product marketing, and distribution process for the 

8 specific product addressed. 

9 ‘‘(d) DEADLINES.—The Secretary shall establish new 

10 qualifying levels— 

11 ‘‘(1) not later than January 1, 2006, for clothes 

12 washers and dishwashers, effective beginning Janu13 ary 1, 2007; and 

14 ‘‘(2) not later than January 1, 2008, for clothes 

15 washers, effective beginning January 1, 2010.’’. 

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

17 of contents of the Energy Policy and Conservation Act (42 

18 U.S.C. prec. 6201) is amended by inserting after the item 

19 relating to section 324 the following: 

‘‘Sec. 324A. Energy Star program.’’. 

20 SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION 

21 PROGRAM. 

22 Section 337 of the Energy Policy and Conservation 

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

24 the following: 
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1 ‘‘(c) HVAC MAINTENANCE.—(1) To ensure that in2 stalled air conditioning and heating systems operate at 

3 maximum rated efficiency levels, the Secretary shall, not 

4 later than 180 days after the date of enactment of this 

5 subsection, carry out a program to educate homeowners 

6 and small business owners concerning the energy savings 

7 from properly conducted maintenance of air conditioning, 

8 heating, and ventilating systems. 

9 ‘‘(2) The Secretary shall carry out the program under 

10 paragraph (1), on a cost-shared basis, in cooperation with 

11 the Administrator of the Environmental Protection Agen12 cy and any other entities that the Secretary determines 

13 to be appropriate, including industry trade associations, 

14 industry members, and energy efficiency organizations. 

15 ‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST16 ANCE.—(1) The Administrator of the Small Business Ad17 ministration, in consultation with the Secretary and the 

18 Administrator of the Environmental Protection Agency, 

19 shall develop and coordinate a Government-wide program, 

20 building on the Energy Star for Small Business Program, 

21 to assist small businesses in— 

22 ‘‘(A) becoming more energy efficient; 

23 ‘‘(B) understanding the cost savings from im24 proved energy efficiency; and 
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1 ‘‘(C) identifying financing options for energy ef2 ficiency upgrades. 

3 ‘‘(2) The Secretary and the Administrator of the 

4 Small Business Administration shall make program infor5 mation available directly to small businesses and through 

6 other Federal agencies, including the Federal Emergency 

7 Management Agency and the Department of Agri8 culture.’’. 

9 SEC. 133. PUBLIC ENERGY EDUCATION PROGRAM. 

10 (a) IN GENERAL.—Not later than 180 days after the 

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

12 an organizational conference for the purpose of estab13 lishing an ongoing, self-sustaining national public energy 

14 education program. 

15 (b) PARTICIPANTS.—The Secretary shall invite to 

16 participate in the conference individuals and entities rep17 resenting all aspects of energy production and distribu18 tion, including— 

19 (1) industrial firms; 

20 (2) professional societies; 

21 (3) educational organizations; 

22 (4) trade associations; and 

23 (5) governmental agencies. 

24 (c) PURPOSE, SCOPE, AND STRUCTURE.— 
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1 (1) PURPOSE.—The purpose of the conference 

2 shall be to establish an ongoing, self-sustaining na3 tional public energy education program to examine 

4 and recognize interrelationships between energy 

5 sources in all forms, including— 

6 (A) conservation and energy efficiency; 

7 (B) the role of energy use in the economy; 

8 and 

9 (C) the impact of energy use on the envi10 ronment. 

11 (2) SCOPE AND STRUCTURE.—Taking into con12 sideration the purpose described in paragraph (1), 

13 the participants in the conference invited under sub14 section (b) shall design the scope and structure of 

15 the program described in subsection (a). 

16 (d) TECHNICAL ASSISTANCE.—The Secretary shall 

17 provide technical assistance and other guidance necessary 

18 to carry out the program described in subsection (a). 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated such sums as are nec21 essary to carry out this section. 
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1 SEC. 134. ENERGY EFFICIENCY PUBLIC INFORMATION INI2 TIATIVE. 

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

4 comprehensive national program, including advertising 

5 and media awareness, to inform consumers about— 

6 (1) the need to reduce energy consumption dur7 ing the 4-year period beginning on the date of enact8 ment of this Act; 

9 (2) the benefits to consumers of reducing con10 sumption of electricity, natural gas, and petroleum, 

11 particularly during peak use periods; 

12 (3) the importance of low energy costs to eco13 nomic growth and preserving manufacturing jobs in 

14 the United States; and 

15 (4) practical, cost-effective measures that con16 sumers can take to reduce consumption of elec17 tricity, natural gas, and gasoline, including— 

18 (A) maintaining and repairing heating and 

19 cooling ducts and equipment; 

20 (B) weatherizing homes and buildings; 

21 (C) purchasing energy efficient products; 

22 and 

23 (D) proper tire maintenance. 

24 (b) COOPERATION.—The program carried out under 

25 subsection (a) shall— 
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1 (1) include collaborative efforts with State and 

2 local government officials and the private sector; and 

3 (2) incorporate, to the maximum extent prac4 ticable, successful State and local public education 

5 programs. 

6 (c) REPORT.—Not later than July 1, 2009, the Sec7 retary shall submit to Congress a report describing the 

8 effectiveness of the program under this section. 

9 (d) TERMINATION OF AUTHORITY.—The program 

10 carried out under this section shall terminate on December 

11 31, 2010. 

12 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

13 are authorized to be appropriated to carry out this section 

14 $90,000,000 for each of fiscal years 2006 through 2010. 

15 SEC. 135. ENERGY CONSERVATION STANDARDS FOR ADDI16 TIONAL PRODUCTS. 

17 (a) DEFINITIONS.—Section 321 of the Energy Policy 

18 and Conservation Act (42 U.S.C. 6291) is amended— 

19 (1) in paragraph (29)— 

20 (A) in subparagraph (D)— 

21 (i) in clause (i), by striking ‘‘C78.1– 

22 1978(R1984)’’ and inserting ‘‘C78.81– 

23 2003 (Data Sheet 7881–ANSI–1010–1)’’; 

24 (ii) in clause (ii), by striking ‘‘C78.1– 

25 1978(R1984)’’ and inserting ‘‘C78.81– 
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1 2003 (Data Sheet 7881–ANSI–3007–1)’’; 

2 and 

3 (iii) in clause (iii), by striking 

4 ‘‘C78.1–1978(R1984)’’ and inserting 

5 ‘‘C78.81–2003 (Data Sheet 7881–ANSI– 

6 1019–1)’’; and 

7 (B) by adding at the end the following: 

8 ‘‘(M) The term ‘F34T12 lamp’ (also known as 

9 a ‘F40T12/ES lamp’) means a nominal 34 watt tu10 bular fluorescent lamp that is 48 inches in length 

and 11 11 ⁄2 inches in diameter, and conforms to ANSI 

12 standard C78.81–2003 (Data Sheet 7881–ANSI– 

13 1006–1). 

14 ‘‘(N) The term ‘F96T12/ES lamp’ means a 

15 nominal 60 watt tubular fluorescent lamp that is 96 

inches in length and 11 16 ⁄2 inches in diameter, and 

17 conforms to ANSI standard C78.81–2003 (Data 

18 Sheet 7881–ANSI–3006–1). 

19 ‘‘(O) The term ‘F96T12HO/ES lamp’ means a 

20 nominal 95 watt tubular fluorescent lamp that is 96 

inches in length and 11 21 ⁄2 inches in diameter, and 

22 conforms to ANSI standard C78.81–2003 (Data 

23 Sheet 7881–ANSI–1017–1). 

24 ‘‘(P) The term ‘replacement ballast’ means a 

25 ballast that— 
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1 ‘‘(i) is designed for use to replace an exist2 ing ballast in a previously installed luminaire; 

3 ‘‘(ii) is marked ‘FOR REPLACEMENT 

4 USE ONLY’; 

5 ‘‘(iii) is shipped by the manufacturer in 

6 packages containing not more than 10 ballasts; 

7 and 

8 ‘‘(iv) has output leads that when fully ex9 tended are a total length that is less than the 

10 length of the lamp with which the ballast is in11 tended to be operated.’’; 

12 (2) in paragraph (30)(S)— 

13 (A) by inserting ‘‘(i)’’ before ‘‘The term’’; 

14 and 

15 (B) by adding at the end the following: 

16 ‘‘(ii) The term ‘‘medium base compact flu17 orescent lamp’’ does not include— 

18 ‘‘(I) any lamp that is— 

19 ‘‘(aa) specifically designed to be 

20 used for special purpose applications; 

21 and 

22 ‘‘(bb) unlikely to be used in gen23 eral purpose applications, such as the 

24 applications described in subpara25 graph (D); or 
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1 ‘‘(II) any lamp not described in sub2 paragraph (D) that is excluded by the Sec3 retary, by rule, because the lamp is— 

4 ‘‘(aa) designed for special appli5 cations; and 

6 ‘‘(bb) unlikely to be used in gen7 eral purpose applications.’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(32) The term ‘battery charger’ means a de10 vice that charges batteries for consumer products, 

11 including battery chargers embedded in other con12 sumer products. 

13 ‘‘(33)(A) The term ‘commercial prerinse spray 

14 valve’ means a handheld device designed and mar15 keted for use with commercial dishwashing and ware 

16 washing equipment that sprays water on dishes, flat17 ware, and other food service items for the purpose 

18 of removing food residue before cleaning the items. 

19 ‘‘(B) The Secretary may modify the definition 

20 of ‘commercial prerinse spray valve’ by rule— 

21 ‘‘(i) to include products— 

22 ‘‘(I) that are extensively used in con23 junction with commercial dishwashing and 

24 ware washing equipment; 
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1 ‘‘(II) the application of standards to 

2 which would result in significant energy 

3 savings; and 

4 ‘‘(III) the application of standards to 

5 which would meet the criteria specified in 

6 section 325(o)(4); and 

7 ‘‘(ii) to exclude products— 

8 ‘‘(I) that are used for special food 

9 service applications; 

10 ‘‘(II) that are unlikely to be widely 

11 used in conjunction with commercial dish12 washing and ware washing equipment; and 

13 ‘‘(III) the application of standards to 

14 which would not result in significant en15 ergy savings. 

16 ‘‘(34) The term ‘dehumidifier’ means a self-con17 tained, electrically operated, and mechanically en18 cased assembly consisting of— 

19 ‘‘(A) a refrigerated surface (evaporator) 

20 that condenses moisture from the atmosphere; 

21 ‘‘(B) a refrigerating system, including an 

22 electric motor; 

23 ‘‘(C) an air-circulating fan; and 

24 ‘‘(D) means for collecting or disposing of 

25 the condensate. 
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1 ‘‘(35)(A) The term ‘distribution transformer’ 

2 means a transformer that— 

3 ‘‘(i) has an input voltage of 34.5 kilovolts 

4 or less; 

5 ‘‘(ii) has an output voltage of 600 volts or 

6 less; and 

7 ‘‘(iii) is rated for operation at a frequency 

8 of 60 Hertz. 

9 ‘‘(B) The term ‘distribution transformer’ does 

10 not include— 

11 ‘‘(i) a transformer with multiple voltage 

12 taps, the highest of which equals at least 20 

13 percent more than the lowest; 

14 ‘‘(ii) a transformer that is designed to be 

15 used in a special purpose application and is un16 likely to be used in general purpose applica17 tions, such as a drive transformer, rectifier 

18 transformer, auto-transformer, Uninterruptible 

19 Power System transformer, impedance trans20 former, regulating transformer, sealed and non21 ventilating transformer, machine tool trans22 former, welding transformer, grounding trans23 former, or testing transformer; or 
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1 ‘‘(iii) any transformer not listed in clause 

2 (ii) that is excluded by the Secretary by rule be3 cause— 

4 ‘‘(I) the transformer is designed for a 

5 special application; 

6 ‘‘(II) the transformer is unlikely to be 

7 used in general purpose applications; and 

8 ‘‘(III) the application of standards to 

9 the transformer would not result in signifi10 cant energy savings. 

11 ‘‘(36) The term ‘external power supply’ means 

12 an external power supply circuit that is used to con13 vert household electric current into DC current or 

14 lower-voltage AC current to operate a consumer 

15 product. 

16 ‘‘(37) The term ‘illuminated exit sign’ means a 

17 sign that— 

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

19 place to identify an exit; and 

20 ‘‘(B) consists of an electrically powered in21 tegral light source that— 

22 ‘‘(i) illuminates the legend ‘EXIT’ 

23 and any directional indicators; and 
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1 ‘‘(ii) provides contrast between the 

2 legend, any directional indicators, and the 

3 background. 

4 ‘‘(38) The term ‘low-voltage dry-type distribu5 tion transformer’ means a distribution transformer 

6 that— 

7 ‘‘(A) has an input voltage of 600 volts or 

8 less; 

9 ‘‘(B) is air-cooled; and 

10 ‘‘(C) does not use oil as a coolant. 

11 ‘‘(39) The term ‘pedestrian module’ means a 

12 light signal used to convey movement information to 

13 pedestrians. 

14 ‘‘(40) The term ‘refrigerated bottled or canned 

15 beverage vending machine’ means a commercial re16 frigerator that cools bottled or canned beverages and 

17 dispenses the bottled or canned beverages on pay18 ment. 

19 ‘‘(41) The term ‘standby mode’ means the low20 est power consumption mode, as established on an 

21 individual product basis by the Secretary, that— 

22 ‘‘(A) cannot be switched off or influenced 

23 by the user; and 

24 ‘‘(B) may persist for an indefinite time 

25 when an appliance is— 
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1 ‘‘(i) connected to the main electricity 

2 supply; and 

3 ‘‘(ii) used in accordance with the in4 structions of the manufacturer. 

5 ‘‘(42) The term ‘torchiere’ means a portable 

6 electric lamp with a reflector bowl that directs light 

7 upward to give indirect illumination. 

8 ‘‘(43) The term ‘traffic signal module’ means a 

9 standard 8-inch (200mm) or 12-inch (300mm) traf10 fic signal indication that— 

11 ‘‘(A) consists of a light source, a lens, and 

12 all other parts necessary for operation; and 

13 ‘‘(B) communicates movement messages to 

14 drivers through red, amber, and green colors. 

15 ‘‘(44) The term ‘transformer’ means a device 

16 consisting of 2 or more coils of insulated wire that 

17 transfers alternating current by electromagnetic in18 duction from 1 coil to another to change the original 

19 voltage or current value. 

20 ‘‘(45)(A) The term ‘unit heater’ means a self21 contained fan-type heater designed to be installed 

22 within the heated space. 

23 ‘‘(B) The term ‘unit heater’ does not include a 

24 warm air furnace. 
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1 ‘‘(46)(A) The term ‘high intensity discharge 

2 lamp’ means an electric-discharge lamp in which— 

3 ‘‘(i) the light-producing arc is stabilized by 

4 bulb wall temperature; and 

5 ‘‘(ii) the arc tube has a bulb wall loading 

in excess of 3 Watts/cm2 6 . 

7 ‘‘(B) The term ‘high intensity discharge lamp’ 

8 includes mercury vapor, metal halide, and high-pres9 sure sodium lamps described in subparagraph (A). 

10 ‘‘(47)(A) The term ‘mercury vapor lamp’ means 

11 a high intensity discharge lamp in which the major 

12 portion of the light is produced by radiation from 

13 mercury operating at a partial pressure in excess of 

14 100,000 Pa (approximately 1 atm). 

15 ‘‘(B) The term ‘mercury vapor lamp’ includes 

16 clear, phosphor-coated, and self-ballasted lamps de17 scribed in subparagraph (A). 

18 ‘‘(48) The term ‘mercury vapor lamp ballast’ 

19 means a device that is designed and marketed to 

20 start and operate mercury vapor lamps by providing 

21 the necessary voltage and current.’’. 

22 (b) TEST PROCEDURES.—Section 323 of the Energy 

23 Policy and Conservation Act (42 U.S.C. 6293) is amend24 ed— 
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1 (1) in subsection (b), by adding at the end the 

2 following: 

3 ‘‘(9) Test procedures for illuminated exit signs shall 

4 be based on the test method used under version 2.0 of 

5 the Energy Star program of the Environmental Protection 

6 Agency for illuminated exit signs. 

7 ‘‘(10)(A) Test procedures for distribution trans8 formers and low voltage dry-type distribution transformers 

9 shall be based on the ‘Standard Test Method for Meas10 uring the Energy Consumption of Distribution Trans11 formers’ prescribed by the National Electrical Manufac12 turers Association (NEMA TP 2–1998). 

13 ‘‘(B) The Secretary may review and revise the test 

14 procedures established under subparagraph (A). 

15 ‘‘(C) For purposes of section 346(a), the test proce16 dures established under subparagraph (A) shall be consid17 ered to be the testing requirements prescribed by the Sec18 retary under section 346(a)(1) for distribution trans19 formers for which the Secretary makes a determination 

20 that energy conservation standards would— 

21 ‘‘(i) be technologically feasible and economically 

22 justified; and 

23 ‘‘(ii) result in significant energy savings. 

24 ‘‘(11) Test procedures for traffic signal modules and 

25 pedestrian modules shall be based on the test method used 
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1 under the Energy Star program of the Environmental 

2 Protection Agency for traffic signal modules, as in effect 

3 on the date of enactment of this paragraph. 

4 ‘‘(12)(A) Test procedures for medium base compact 

5 fluorescent lamps shall be based on the test methods for 

6 compact fluorescent lamps used under the August 9, 2001, 

7 version of the Energy Star program of the Environmental 

8 Protection Agency and the Department of Energy. 

9 ‘‘(B) Except as provided in subparagraph (C), me10 dium base compact fluorescent lamps shall meet all test 

11 requirements for regulated parameters of section 325(cc). 

12 ‘‘(C) Notwithstanding subparagraph (B), if manufac13 turers document engineering predictions and analysis that 

14 support expected attainment of lumen maintenance at 40 

15 percent rated life and lamp lifetime, medium base compact 

16 fluorescent lamps may be marketed before completion of 

17 the testing of lamp life and lumen maintenance at 40 per18 cent of rated life. 

19 ‘‘(13) Test procedures for dehumidifiers shall be 

20 based on the test criteria used under the Energy Star Pro21 gram Requirements for Dehumidifiers developed by the 

22 Environmental Protection Agency, as in effect on the date 

23 of enactment of this paragraph unless revised by the Sec24 retary pursuant to this section. 
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1 ‘‘(14) The test procedure for measuring flow rate for 

2 commercial prerinse spray valves shall be based on Amer3 ican Society for Testing and Materials Standard F2324, 

4 entitled ‘Standard Test Method for Pre-Rinse Spray 

5 Valves.’ 

6 ‘‘(15) The test procedure for refrigerated bottled or 

7 canned beverage vending machines shall be based on 

8 American National Standards Institute/American Society 

9 of Heating, Refrigerating and Air-Conditioning Engineers 

10 Standard 32.1–2004, entitled ‘Methods of Testing for 

11 Rating Vending Machines for Bottled, Canned or Other 

12 Sealed Beverages’.’’; and 

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

14 ‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL

15 PRODUCTS.—(1) Not later than 2 years after the date of 

16 enactment of this subsection, the Secretary shall prescribe 

17 testing requirements for— 

18 ‘‘(A) suspended ceiling fans; and 

19 ‘‘(B) refrigerated bottled or canned beverage 

20 vending machines. 

21 ‘‘(2) To the maximum extent practicable, the testing 

22 requirements prescribed under paragraph (1) shall be 

23 based on existing test procedures used in industry.’’. 
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1 (c) STANDARD SETTING AUTHORITY.—Section 325 

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

3 6295) is amended— 

4 (1) in subsection (f)(3), by adding at the end 

5 the following: 

6 ‘‘(D) Notwithstanding any other provision of this Act, 

7 if the requirements of subsection (o) are met, the Sec8 retary may consider and prescribe energy conservation 

9 standards or energy use standards for electricity used for 

10 purposes of circulating air through duct work.’’; 

11 (2) in subsection (g)— 

12 (A) in paragraph (6)(B), by inserting ‘‘and 

13 labeled’’ after ‘‘designed’’; and 

14 (B) by adding at the end the following: 

15 ‘‘(8)(A) Each fluorescent lamp ballast (other than re16 placement ballasts or ballasts described in subparagraph 

17 (C))— 

18 ‘‘(i)(I) manufactured on or after July 1, 2009; 

19 ‘‘(II) sold by the manufacturer on or after Oc20 tober 1, 2009; or 

21 ‘‘(III) incorporated into a luminaire by a lumi22 naire manufacturer on or after July 1, 2010; and 

23 ‘‘(ii) designed— 

24 ‘‘(I) to operate at nominal input voltages 

25 of 120 or 277 volts; 
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1 ‘‘(II) to operate with an input current fre2 quency of 60 Hertz; and 

3 ‘‘(III) for use in connection with F34T12 

4 lamps, F96T12/ES lamps, or F96T12HO/ES 

5 lamps; 

6 shall have a power factor of 0.90 or greater and shall have 

7 a ballast efficacy factor of not less than the following: 

Application for operation of 

Ballast 

input 

voltage 

Total 

nominal 

lamp 

watts 

Ballast 

efficacy 

factor 

One F34T12 lamp 120/277 34 2.61 

Two F34T12 lamps 120/277 68 1.35 

Two F96 T12/ES lamps 120/277 120 0.77 

Two F96 T12HO/ES lamps 120/277 190 0.42 

8 ‘‘(B) The standards described in subparagraph (A) 

9 shall apply to all ballasts covered by subparagraph (A)(ii) 

10 that are manufactured on or after July 1, 2010, or sold 

11 by the manufacturer on or after October 1, 2010. 

12 ‘‘(C) The standards described in subparagraphs (A) 

13 and (B) do not apply to— 

14 ‘‘(i) a ballast that is designed for dimming to 

15 50 percent or less of the maximum output of the 

16 ballast; 

17 ‘‘(ii) a ballast that is designed for use with 2 

18 F96T12HO lamps at ambient temperatures of 20°F 

19 or less and for use in an outdoor sign; or 
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1 ‘‘(iii) a ballast that has a power factor of less 

2 than 0.90 and is designed and labeled for use only 

3 in residential applications.’’; 

4 (3) in subsection (o), by adding at the end the 

5 following: 

6 ‘‘(5) The Secretary may set more than 1 energy con7 servation standard for products that serve more than 1 

8 major function by setting 1 energy conservation standard 

9 for each major function.’’; 

10 (4) in the first sentence of subsection (p), by 

11 striking ‘‘Any’’ and inserting the following: ‘‘Except 

12 as provided in subsection (u), any’’; and 

13 (5) by adding at the end the following: 

14 ‘‘(u) SPECIAL RULEMAKING PROCEDURES.—(1) Not15 withstanding any other provision of law, the Secretary 

16 may publish a notice of direct final rulemaking based on 

17 an energy conservation standard recommended by an in18 terested person, if— 

19 ‘‘(A) in response to an advance notice of pro20 posed rulemaking under paragraph (p), the inter21 ested person (including a representative of a manu22 facturer of a covered product, a conservation advo23 cate, or consumer) submits a joint comment recom24 mending an energy conservation standard; and 
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1 ‘‘(B) the Secretary determines that the energy 

2 conservation standard complies with the substantive 

3 provisions of this Act that apply to the type (or 

4 class) of covered products to which the rule may 

5 apply. 

6 ‘‘(2) The Secretary shall publish a notice of direct 

7 final rulemaking under paragraph (1) with a notice of pro8 posed rulemaking incorporating by reference the regu9 latory language of the direct final rule that provides for 

10 an effective date not earlier than 90 days after the date 

11 of publication. 

12 ‘‘(3) The Secretary may withdraw a direct final rule 

13 published under paragraph (2) before the effective date 

14 of the rule if an interested person files a significant ad15 verse comment in response to the related notice of pro16 posed rulemaking. 

17 ‘‘(v) BATTERY CHARGER AND EXTERNAL POWER

18 SUPPLY ELECTRIC ENERGY CONSUMPTION.—(1)(A) Not 

19 later than 18 months after the date of enactment of this 

20 subsection, the Secretary shall, after providing notice and 

21 an opportunity for comment, prescribe, by rule, definitions 

22 and test procedures for the power use of battery chargers 

23 and external power supplies. 

24 ‘‘(B) In establishing the test procedures under sub25 paragraph (A), the Secretary shall— 
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1 ‘‘(i) consider existing definitions and test proce2 dures used for measuring energy consumption in 

3 standby mode and other modes; and 

4 ‘‘(ii) assess the current and projected future 

5 market for battery chargers and external power sup6 plies. 

7 ‘‘(C) The assessment under subparagraph (B)(ii) 

8 shall include— 

9 ‘‘(i) estimates of the significance of potential 

10 energy savings from technical improvements to bat11 tery chargers and external power supplies; and 

12 ‘‘(ii) suggested product classes for energy con13 servation standards. 

14 ‘‘(D) Not later than 18 months after the date of en15 actment of this subsection, the Secretary shall hold a 

16 scoping workshop to discuss and receive comments on 

17 plans for developing energy conservation standards for en18 ergy use for battery chargers and external power supplies. 

19 ‘‘(E)(i) Not later than 3 years after the date of enact20 ment of this subsection, the Secretary shall issue a final 

21 rule that determines whether energy conservation stand22 ards shall be issued for battery chargers and external 

23 power supplies or classes of battery chargers and external 

24 power supplies. 
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•S 10 PCS 

1 ‘‘(ii) For each product class, any energy conservation 

2 standards issued under clause (i) shall be set at the lowest 

3 level of energy use that— 

4 ‘‘(I) meets the criteria and procedures of sub5 sections (o), (p), (q), (r), (s), and (t); and 

6 ‘‘(II) would result in significant overall annual 

7 energy savings, considering standby mode and other 

8 operating modes. 

9 ‘‘(2) In determining under section 323 whether test 

10 procedures and energy conservation standards under this 

11 section should be revised with respect to covered products 

12 that are major sources of standby mode energy consump13 tion, the Secretary shall consider whether to incorporate 

14 standby mode into the test procedures and energy con15 servation standards, taking into account standby mode 

16 power consumption compared to overall product energy 

17 consumption. 

18 ‘‘(3) The Secretary shall not propose an energy con19 servation standard under this section, unless the Secretary 

20 has issued applicable test procedures for each product 

21 under section 323. 

22 ‘‘(4) Any energy conservation standard issued under 

23 this subsection shall be applicable to products manufac24 tured or imported beginning on the date that is 3 years 

25 after the date of issuance. 
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1 ‘‘(5) The Secretary and the Administrator shall col2 laborate and develop programs (including programs under 

3 section 324A and other voluntary industry agreements or 

4 codes of conduct) that are designed to reduce standby 

5 mode energy use. 

6 ‘‘(w) SUSPENDED CEILING FANS AND REFRIG7 ERATED BEVERAGE VENDING MACHINES.—(1) Not later 

8 than 4 years after the date of enactment of this sub9 section, the Secretary shall prescribe, by rule, energy con10 servation standards for— 

11 ‘‘(A) suspended ceiling fans; and 

12 ‘‘(B) refrigerated bottled or canned beverage 

13 vending machines. 

14 ‘‘(2) In establishing energy conservation standards 

15 under this subsection, the Secretary shall use the criteria 

16 and procedures prescribed under subsections (o) and (p). 

17 ‘‘(3) Any energy conservation standard prescribed 

18 under this subsection shall apply to products manufac19 tured 3 years after the date of publication of a final rule 

20 establishing the energy conservation standard. 

21 ‘‘(x) ILLUMINATED EXIT SIGNS.—An illuminated 

22 exit sign manufactured on or after January 1, 2006, shall 

23 meet the version 2.0 Energy Star Program performance 

24 requirements for illuminated exit signs prescribed by the 

25 Environmental Protection Agency. 
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1 ‘‘(y) TORCHIERES.—A torchiere manufactured on or 

2 after January 1, 2006— 

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

4 power; and 

5 ‘‘(2) shall not be capable of operating with 

6 lamps that total more than 190 watts. 

7 ‘‘(z) LOW VOLTAGE DRY-TYPE DISTRIBUTION

8 TRANSFORMERS.—The efficiency of a low voltage dry-type 

9 distribution transformer manufactured on or after Janu10 ary 1, 2006, shall be the Class I Efficiency Levels for dis11 tribution transformers specified in table 4–2 of the ‘Guide 

12 for Determining Energy Efficiency for Distribution Trans13 formers’ published by the National Electrical Manufactur14 ers Association (NEMA TP–1–2002). 

15 ‘‘(aa) TRAFFIC SIGNAL MODULES AND PEDESTRIAN

16 MODULES.—Any traffic signal module or pedestrian mod17 ule manufactured on or after January 1, 2006, shall— 

18 ‘‘(1) meet the performance requirements used 

19 under the Energy Star program of the Environ20 mental Protection Agency for traffic signals, as in 

21 effect on the date of enactment of this subsection; 

22 and 

23 ‘‘(2) be installed with compatible, electrically 

24 connected signal control interface devices and con25 flict monitoring systems. 
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1 ‘‘(bb) UNIT HEATERS.—A unit heater manufactured 

2 on or after the date that is 3 years after the date of enact3 ment of this subsection shall— 

4 ‘‘(1) be equipped with an intermittent ignition 

5 device; and 

6 ‘‘(2) have power venting or an automatic flue 

7 damper. 

8 ‘‘(cc) MEDIUM BASE COMPACT FLUORESCENT

9 LAMPS.—(1) A bare lamp and covered lamp (no reflector) 

10 medium base compact fluorescent lamp manufactured on 

11 or after January 1, 2006, shall meet the following require12 ments prescribed by the August 9, 2001, version of the 

13 Energy Star Program Requirements for Compact Fluores14 cent Lamps, Energy Star Eligibility Criteria, Energy-Effi15 ciency Specification issued by the Environmental Protec16 tion Agency and Department of Energy: 

17 ‘‘(A) Minimum initial efficacy. 

18 ‘‘(B) Lumen maintenance at 1000 hours. 

19 ‘‘(C) Lumen maintenance at 40 percent of 

20 rated life. 

21 ‘‘(D) Rapid cycle stress test. 

22 ‘‘(E) Lamp life. 

23 ‘‘(2) The Secretary may, by rule, establish require24 ments for color quality (CRI), power factor, operating fre25 quency, and maximum allowable start time based on the 
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1 requirements prescribed by the August 9, 2001, version 

2 of the Energy Star Program Requirements for Compact 

3 Fluorescent Lamps. 

4 ‘‘(3) The Secretary may, by rule— 

5 ‘‘(A) revise the requirements established under 

6 paragraph (2); or 

7 ‘‘(B) establish other requirements, after consid8 ering energy savings, cost effectiveness, and con9 sumer satisfaction. 

10 ‘‘(dd) DEHUMIDIFIERS.—(1) Dehumidifiers manu11 factured on or after October 1, 2007, shall have an Energy 

12 Factor that meets or exceeds the following values: 

‘‘Product Capacity (pints/day): Minimum Energy Factor 

(Liters/kWh) 

25.00 or less ............................................................................. 1.00

25.01 – 35.00 ........................................................................... 1.20

35.01 – 54.00 ........................................................................... 1.30

54.01 – 74.99 ........................................................................... 1.50

75.00 or more .......................................................................... 2.25. 

13 ‘‘(2)(A) Not later than October 1, 2009, the Sec14 retary shall publish a final rule in accordance with sub15 sections (o) and (p), to determine whether the energy con16 servation standards established under paragraph (1) 

17 should be amended. 

18 ‘‘(B) The final rule published under subparagraph 

19 (A) shall— 

20 ‘‘(i) contain any amendment by the Secretary; 

21 and 
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1 ‘‘(ii) provide that the amendment applies to 

2 products manufactured on or after October 1, 2012. 

3 ‘‘(C) If the Secretary does not publish an amendment 

4 that takes effect by October 1, 2012, dehumidifiers manu5 factured on or after October 1, 2012, shall have an Energy 

6 Factor that meets or exceeds the following values: 

‘‘Product Capacity (pints/day): Minimum Energy Factor 

(Liters/kWh) 

25.00 or less ............................................................................. 1.20

25.01 – 35.00 ........................................................................... 1.30

35.01 – 45.00 ........................................................................... 1.40

45.01 – 54.00 ........................................................................... 1.50

54.01 – 74.99 ........................................................................... 1.60

75.00 or more .......................................................................... 2.5. 

7 ‘‘(ee) COMMERCIAL PRERINSE SPRAY VALVES.— 

8 Commercial prerinse spray valves manufactured on or 

9 after January 1, 2006, shall have a flow rate of not more 

10 than 1.6 gallons per minute. 

11 ‘‘(ff) MERCURY VAPOR LAMP BALLASTS.—Mercury 

12 vapor lamp ballasts shall not be manufactured or imported 

13 after January 1, 2008. 

14 ‘‘(gg) APPLICATION DATE.—Section 327 applies— 

15 ‘‘(1) to products for which energy conservation 

16 standards are to be established under subsection (l), 

17 (u), (v), or (w) beginning on the date on which a 

18 final rule is issued by the Secretary, except that any 

19 State or local standard prescribed or enacted for the 

20 product before the date on which the final rule is 

21 issued shall not be preempted until the energy con-
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1 servation standard established under subsection 

2 (l),(u), (v), or (w) for the product takes effect; and 

3 ‘‘(2) to products for which energy conservation 

4 standards are established under subsections (x) 

5 through (ff) on the date of enactment of those sub6 sections, except that any State or local standard pre7 scribed or enacted before the date of enactment of 

8 those subsections shall not be preempted until the 

9 energy conservation standards established under 

10 subsections (x) through (ff) take effect.’’. 

11 (d) GENERAL RULE OF PREEMPTION.—Section 

12 327(c) of the Energy Policy and Conservation Act (42 

13 U.S.C. 6297(c)) is amended— 

14 (1) in paragraph (5), by striking ‘‘or’’ at the 

15 end; 

16 (2) in paragraph (6), by striking the period at 

17 the end and inserting ‘‘; or’’; and 

18 (3) by adding at the end the following: 

19 ‘‘(7)(A) is a regulation concerning standards for 

20 commercial prerinse spray valves adopted by the 

21 California Energy Commission before January 1, 

22 2005; or 

23 ‘‘(B) is an amendment to a regulation described 

24 in subparagraph (A) that was developed to align 
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1 California regulations with changes in American So2 ciety for Testing and Materials Standard F2324; 

3 ‘‘(8)(A) is a regulation concerning standards for 

4 pedestrian modules adopted by the California En5 ergy Commission before January 1, 2005; or 

6 ‘‘(B) is an amendment to a regulation described 

7 in subparagraph (A) that was developed to align 

8 California regulations to changes in the Institute for 

9 Transportation Engineers standards, entitled ‘Per10 formance Specification: Pedestrian Traffic Control 

11 Signal Indications’.’’. 

12 SEC. 136. ENERGY CONSERVATION STANDARDS FOR COM13 MERCIAL EQUIPMENT. 

14 (a) DEFINITIONS.—Section 340 of the Energy Policy 

15 and Conservation Act (42 U.S.C. 6311) is amended— 

16 (1) in paragraph (1)— 

17 (A) by redesignating subparagraphs (D) 

18 through (G) as subparagraphs (H) through 

19 (K), respectively; and 

20 (B) by inserting after subparagraph (C) 

21 the following: 

22 ‘‘(D) Very large commercial package air 

23 conditioning and heating equipment. 

24 ‘‘(E) Commercial refrigerators, freezers, 

25 and refrigerator-freezers. 
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1 ‘‘(F) Automatic commercial ice makers. 

2 ‘‘(G) Commercial clothes washers.’’; 

3 (2) in paragraph (2)(B), by striking ‘‘small and 

4 large commercial package air conditioning and heat5 ing equipment’’ and inserting ‘‘commercial package 

6 air conditioning and heating equipment, commercial 

7 refrigerators, freezers, and refrigerator-freezers, 

8 automatic commercial ice makers, commercial 

9 clothes washers’’; 

10 (3) by striking paragraphs (8) and (9) and in11 serting the following: 

12 ‘‘(8)(A) The term ‘commercial package air con13 ditioning and heating equipment’ means air-cooled, 

14 water-cooled, evaporatively-cooled, or water source 

15 (not including ground water source) electrically oper16 ated, unitary central air conditioners and central air 

17 conditioning heat pumps for commercial application. 

18 ‘‘(B) The term ‘small commercial package air 

19 conditioning and heating equipment’ means commer20 cial package air conditioning and heating equipment 

21 that is rated below 135,000 Btu per hour (cooling 

22 capacity). 

23 ‘‘(C) The term ‘large commercial package air 

24 conditioning and heating equipment’ means commer-
83 

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1 cial package air conditioning and heating equipment 

2 that is rated— 

3 ‘‘(i) at or above 135,000 Btu per hour; 

4 and 

5 ‘‘(ii) below 240,000 Btu per hour (cooling 

6 capacity). 

7 ‘‘(D) The term ‘very large commercial package 

8 air conditioning and heating equipment’ means com9 mercial package air conditioning and heating equip10 ment that is rated— 

11 ‘‘(i) at or above 240,000 Btu per hour; 

12 and 

13 ‘‘(ii) below 760,000 Btu per hour (cooling 

14 capacity). 

15 ‘‘(9)(A) The term ‘commercial refrigerator, 

16 freezer, and refrigerator-freezer’ means refrigeration 

17 equipment that— 

18 ‘‘(i) is not a consumer product (as defined 

19 in section 321); 

20 ‘‘(ii) is not designed and marketed exclu21 sively for medical, scientific, or research pur22 poses; 

23 ‘‘(iii) operates at a chilled, frozen, com24 bination chilled and frozen, or variable tempera25 ture; 
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•S 10 PCS 

1 ‘‘(iv) displays or stores merchandise and 

2 other perishable materials horizontally, 

3 semivertically, or vertically; 

4 ‘‘(v) has transparent or solid doors, sliding 

5 or hinged doors, a combination of hinged, slid6 ing, transparent, or solid doors, or no doors; 

7 ‘‘(vi) is designed for pull-down temperature 

8 applications or holding temperature applica9 tions; and 

10 ‘‘(vii) is connected to a self-contained con11 densing unit or to a remote condensing unit. 

12 ‘‘(B) The term ‘holding temperature applica13 tion’ means a use of commercial refrigeration equip14 ment other than a pull-down temperature applica15 tion, except a blast chiller or freezer. 

16 ‘‘(C) The term ‘integrated average temperature’ 

17 means the average temperature of all test package 

18 measurements taken during the test. 

19 ‘‘(D) The term ‘pull-down temperature applica20 tion’ means a commercial refrigerator with doors 

21 that, when fully loaded with 12 ounce beverage cans 

22 at 90 degrees F, can cool those beverages to an av23 erage stable temperature of 38 degrees F in 12 

24 hours or less. 
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1 ‘‘(E) The term ‘remote condensing unit’ means 

2 a factory-made assembly of refrigerating components 

3 designed to compress and liquefy a specific refrig4 erant that is remotely located from the refrigerated 

5 equipment and consists of 1 or more refrigerant 

6 compressors, refrigerant condensers, condenser fans 

7 and motors, and factory supplied accessories. 

8 ‘‘(F) The term ‘self-contained condensing unit’ 

9 means a factory-made assembly of refrigerating com10 ponents designed to compress and liquefy a specific 

11 refrigerant that is an integral part of the refrig12 erated equipment and consists of 1 or more refrig13 erant compressors, refrigerant condensers, condenser 

14 fans and motors, and factory supplied accessories.’’; 

15 and 

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

17 ‘‘(19) The term ‘automatic commercial ice 

18 maker’ means a factory-made assembly (not nec19 essarily shipped in 1 package) that— 

20 ‘‘(A) consists of a condensing unit and ice21 making section operating as an integrated unit, 

22 with means for making and harvesting ice; and 

23 ‘‘(B) may include means for storing ice, 

24 dispensing ice, or storing and dispensing ice. 
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1 ‘‘(20) The term ‘commercial clothes washer’ 

2 means a soft-mount front-loading or soft-mount top3 loading clothes washer that— 

4 ‘‘(A) has a clothes container compartment 

5 that— 

6 ‘‘(i) for horizontal-axis clothes wash7 ers, is not more than 3.5 cubic feet ; and 

8 ‘‘(ii) for vertical-axis clothes washers, 

9 is not more than 4.0 cubic feet; and 

10 ‘‘(B) is designed for use in— 

11 ‘‘(i) applications in which the occu12 pants of more than 1 household will be 

13 using the clothes washer, such as multi14 family housing common areas and coin 

15 laundries; or 

16 ‘‘(ii) other commercial applications. 

17 ‘‘(21) The term ‘harvest rate’ means the 

18 amount of ice (at 32 degrees F) in pounds produced 

19 per 24 hours.’’. 

20 (b) STANDARDS FOR COMMERCIAL PACKAGE AIR

21 CONDITIONING AND HEATING EQUIPMENT.—Section 

22 342(a) of the Energy Policy and Conservation Act (42 

23 U.S.C. 6313(a)) is amended— 
87 

•S 10 PCS 

1 (1) in the subsection heading, by striking 

2 ‘‘SMALL AND LARGE’’ and inserting ‘‘SMALL, 

3 LARGE, AND VERY LARGE’’; 

4 (2) in paragraph (1), by inserting ‘‘but before 

5 January 1, 2010,’’ after ‘‘January 1, 1994,’’; 

6 (3) in paragraph (2), by inserting ‘‘but before 

7 January 1, 2010,’’ after ‘‘January 1, 1995,’’; and 

8 (4) in paragraph (6)— 

9 (A) in subparagraph (A)— 

10 (i) by inserting ‘‘(i)’’ after ‘‘(A)’’; 

11 (ii) by striking ‘‘the date of enactment 

12 of the Energy Policy Act of 1992’’ and in13 serting ‘‘January 1, 2010’’; 

14 (iii) by inserting after ‘‘large commer15 cial package air conditioning and heating 

16 equipment,’’ the following: ‘‘and very large 

17 commercial package air conditioning and 

18 heating equipment, or if ASHRAE/IES 

19 Standard 90.1, as in effect on October 24, 

20 1992, is amended with respect to any’’; 

21 and 

22 (iv) by adding at the end the fol23 lowing: 

24 ‘‘(ii) If ASHRAE/IES Standard 90.1 is not amended 

25 with respect to small commercial package air conditioning 
88 

•S 10 PCS 

1 and heating equipment, large commercial package air con2 ditioning and heating equipment, and very large commer3 cial package air conditioning and heating equipment dur4 ing the 5-year period beginning on the effective date of 

5 a standard, the Secretary may initiate a rulemaking to 

6 determine whether a more stringent standard— 

7 ‘‘(I) would result in significant additional con8 servation of energy; and 

9 ‘‘(II) is technologically feasible and economi10 cally justified.’’; and 

11 (B) in subparagraph (C)(ii), by inserting 

12 ‘‘and very large commercial package air condi13 tioning and heating equipment’’ after ‘‘large 

14 commercial package air conditioning and heat15 ing equipment’’; and 

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

17 ‘‘(7) Small commercial package air conditioning and 

18 heating equipment manufactured on or after January 1, 

19 2010, shall meet the following standards: 

20 ‘‘(A) The minimum energy efficiency ratio of 

21 air-cooled central air conditioners at or above 65,000 

22 Btu per hour (cooling capacity) and less than 

23 135,000 Btu per hour (cooling capacity) shall be— 

24 ‘‘(i) 11.2 for equipment with no heating or 

25 electric resistance heating; and 
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•S 10 PCS 

1 ‘‘(ii) 11.0 for equipment with all other 

2 heating system types that are integrated into 

3 the equipment (at a standard rating of 95 de4 grees F db). 

5 ‘‘(B) The minimum energy efficiency ratio of 

6 air-cooled central air conditioner heat pumps at or 

7 above 65,000 Btu per hour (cooling capacity) and 

8 less than 135,000 Btu per hour (cooling capacity) 

9 shall be— 

10 ‘‘(i) 11.0 for equipment with no heating or 

11 electric resistance heating; and 

12 ‘‘(ii) 10.8 for equipment with all other 

13 heating system types that are integrated into 

14 the equipment (at a standard rating of 95 de15 grees F db). 

16 ‘‘(C) The minimum coefficient of performance 

17 in the heating mode of air-cooled central air condi18 tioning heat pumps at or above 65,000 Btu per hour 

19 (cooling capacity) and less than 135,000 Btu per 

20 hour (cooling capacity) shall be 3.3 (at a high tem21 perature rating of 47 degrees F db). 

22 ‘‘(8) Large commercial package air conditioning and 

23 heating equipment manufactured on or after January 1, 

24 2010, shall meet the following standards: 
90 

•S 10 PCS 

1 ‘‘(A) The minimum energy efficiency ratio of 

2 air-cooled central air conditioners at or above 

3 135,000 Btu per hour (cooling capacity) and less 

4 than 240,000 Btu per hour (cooling capacity) shall 

5 be— 

6 ‘‘(i) 11.0 for equipment with no heating or 

7 electric resistance heating; and 

8 ‘‘(ii) 10.8 for equipment with all other 

9 heating system types that are integrated into 

10 the equipment (at a standard rating of 95 de11 grees F db). 

12 ‘‘(B) The minimum energy efficiency ratio of 

13 air-cooled central air conditioner heat pumps at or 

14 above 135,000 Btu per hour (cooling capacity) and 

15 less than 240,000 Btu per hour (cooling capacity) 

16 shall be— 

17 ‘‘(i) 10.6 for equipment with no heating or 

18 electric resistance heating; and 

19 ‘‘(ii) 10.4 for equipment with all other 

20 heating system types that are integrated into 

21 the equipment (at a standard rating of 95 de22 grees F db). 

23 ‘‘(C) The minimum coefficient of performance 

24 in the heating mode of air-cooled central air condi25 tioning heat pumps at or above 135,000 Btu per 
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•S 10 PCS 

1 hour (cooling capacity) and less than 240,000 Btu 

2 per hour (cooling capacity) shall be 3.2 (at a high 

3 temperature rating of 47 degrees F db). 

4 ‘‘(9) Very large commercial package air conditioning 

5 and heating equipment manufactured on or after January 

6 1, 2010, shall meet the following standards: 

7 ‘‘(A) The minimum energy efficiency ratio of 

8 air-cooled central air conditioners at or above 

9 240,000 Btu per hour (cooling capacity) and less 

10 than 760,000 Btu per hour (cooling capacity) shall 

11 be— 

12 ‘‘(i) 10.0 for equipment with no heating or 

13 electric resistance heating; and 

14 ‘‘(ii) 9.8 for equipment with all other heat15 ing system types that are integrated into the 

16 equipment (at a standard rating of 95 degrees 

17 F db). 

18 ‘‘(B) The minimum energy efficiency ratio of 

19 air-cooled central air conditioner heat pumps at or 

20 above 240,000 Btu per hour (cooling capacity) and 

21 less than 760,000 Btu per hour (cooling capacity) 

22 shall be— 

23 ‘‘(i) 9.5 for equipment with no heating or 

24 electric resistance heating; and 
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1 ‘‘(ii) 9.3 for equipment with all other heat2 ing system types that are integrated into the 

3 equipment (at a standard rating of 95 degrees 

4 F db). 

5 ‘‘(C) The minimum coefficient of performance 

6 in the heating mode of air-cooled central air condi7 tioning heat pumps at or above 240,000 Btu per 

8 hour (cooling capacity) and less than 760,000 Btu 

9 per hour (cooling capacity) shall be 3.2 (at a high 

10 temperature rating of 47 degrees F db).’’. 

11 (c) STANDARDS FOR COMMERCIAL REFRIGERATORS, 

12 FREEZERS, AND REFRIGERATOR-FREEZERS.—Section 

13 342 of the Energy Policy and Conservation Act (42 U.S.C. 

14 6313) is amended by adding at the end the following: 

15 ‘‘(c) COMMERCIAL REFRIGERATORS, FREEZERS, AND

16 REFRIGERATOR-FREEZERS.—(1) In this subsection: 

17 ‘‘(A) The term ‘AV’ means the adjusted volume 

(ft3 18 ) (defined as 1.63 x frozen temperature compartment volume (ft3 19 ) + chilled temperature compartment volume (ft3 20 )) with compartment volumes meas21 ured in accordance with the Association of Home 

22 Appliance Manufacturers Standard HRF1–1979. 

23 ‘‘(B) The term ‘V’ means the chilled or frozen 

compartment volume (ft3 24 ) (as defined in the Asso-
93 

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1 ciation of Home Appliance Manufacturers Standard 

2 HRF1–1979). 

3 ‘‘(C) Other terms have such meanings as may 

4 be established by the Secretary, based on industry5 accepted definitions and practice. 

6 ‘‘(2) Each commercial refrigerator, freezer, and re7 frigerator-freezer with a self-contained condensing unit de8 signed for holding temperature applications manufactured 

9 on or after January 1, 2010, shall have a daily energy 

10 consumption (in kilowatt hours per day) that does not ex11 ceed the following: 

‘‘Refrigerators with solid doors .............................. 0.10 V + 2.04 

Refrigerators with transparent doors ..................... 0.12 V + 3.34 

Freezers with solid doors ....................................... 0.40 V + 1.38 

Freezers with transparent doors ............................ 0.75 V + 4.10 

Refrigerators/freezers with solid doors the greater 

of.

0.27 AV – 0.71 or 

0.70. 

12 ‘‘(3) Each commercial refrigerator with a self-con13 tained condensing unit designed for pull-down tempera14 ture applications and transparent doors manufactured on 

15 or after January 1, 2010, shall have a daily energy con16 sumption (in kilowatt hours per day) of not more than 

17 0.126 V + 3.51. 

18 ‘‘(4)(A) Not later than January 1, 2009, the Sec19 retary shall issue, by rule, standard levels for ice-cream 

20 freezers, self-contained commercial refrigerators, freezers, 

21 and refrigerator-freezers without doors, and remote con22 densing commercial refrigerators, freezers, and refrig-
94 

•S 10 PCS 

1 erator-freezers, with the standard levels effective for 

2 equipment manufactured on or after January 1, 2012. 

3 ‘‘(B) The Secretary may issue, by rule, standard lev4 els for other types of commercial refrigerators, freezers, 

5 and refrigerator-freezers not covered by paragraph (2)(A) 

6 with the standard levels effective for equipment manufac7 tured 3 or more years after the date on which the final 

8 rule is published. 

9 ‘‘(5)(A) Not later than January 1, 2013, the Sec10 retary shall issue a final rule to determine whether the 

11 standards established under this subsection should be 

12 amended. 

13 ‘‘(B) Not later than 3 years after the effective date 

14 of any amended standards under subparagraph (A) or the 

15 publication of a final rule determining that the standards 

16 should not be amended, the Secretary shall issue a final 

17 rule to determine whether the standards established under 

18 this subsection or the amended standards, as applicable, 

19 should be amended. 

20 ‘‘(C) If the Secretary issues a final rule under sub21 paragraph (A) or (B) establishing amended standards, the 

22 final rule shall provide that the amended standards apply 

23 to products manufactured on or after the date that is— 

24 ‘‘(i) 3 years after the date on which the final 

25 amended standard is published; or 
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1 ‘‘(ii) if the Secretary determines, by rule, that 

2 3 years is inadequate, not later than 5 years after 

3 the date on which the final rule is published.’’. 

4 (d) STANDARDS FOR AUTOMATIC COMMERCIAL ICE

5 MAKERS.—Section 342 of the Energy Policy and Con6 servation Act (42 U.S.C. 6313) (as amended by subsection 

7 (c)) is amended by adding at the end the following: 

8 ‘‘(d) AUTOMATIC COMMERCIAL ICE MAKERS.—(1) 

9 Each automatic commercial ice maker that produces cube 

10 type ice with capacities between 50 and 2500 pounds per 

11 24-hour period when tested according to the test standard 

12 established in section 343(a)(7) and is manufactured on 

13 or after January 1, 2010, shall meet the following stand14 ard levels: 

Equipment Type Type of 

Cooling 

Harvest Rate 

(lbs ice/24 hours) 

Maximum 

Energy Use 

(kWh/100 lbs Ice) 

Maximum 

Condenser 

Water Use 

(gal/100 lbs Ice) 

Ice Making Head Water <500 7.80–0.0055H 200–0.022H 

≥500 and <1436 5.58–0.0011H 200–0.022H 

≥1436 4.0 200–0.022H 

Ice Making Head Air <450 10.26–0.0086H Not Applicable 

≥450 6.89–0.0011H Not Applicable 

Remote Condensing 

(but not remote 

compressor) 

Air <1000 8.85–0.0038H Not Applicable 

≥1000 5.10 Not Applicable 

Remote Condensing 

and Remote 

Compressor 

Air <934 8.85–0.0038H Not Applicable 

≥934 5.3 Not Applicable 
96 

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Equipment Type Type of 

Cooling 

Harvest Rate 

(lbs ice/24 hours) 

Maximum 

Energy Use 

(kWh/100 lbs Ice) 

Maximum 

Condenser 

Water Use 

(gal/100 lbs Ice) 

Self Contained Water <200 11.40–0.019H 191–0.0315H 

≥200 7.60 191–0.0315H 

Self Contained Air <175 18.0–0.0469H Not Applicable 

≥175 9.80 Not Applicable 

H = Harvest rate in pounds per 24 hours. 

Water use is for the condenser only and does not include potable water used to make ice. 

1 ‘‘(2)(A) The Secretary may issue, by rule, standard 

2 levels for types of automatic commercial ice makers that 

3 are not covered by paragraph (1). 

4 ‘‘(B) The standards established under subparagraph 

5 (A) shall apply to products manufactured on or after the 

6 date that is— 

7 ‘‘(i) 3 years after the date on which the rule is 

8 published under subparagraph (A); or 

9 ‘‘(ii) if the Secretary determines, by rule, that 

10 3 years is inadequate, not later than 5 years after 

11 the date on which the final rule is published. 

12 ‘‘(3)(A) Not later than January 1, 2015, with respect 

13 to the standards established under paragraph (1), and, 

14 with respect to the standards established under paragraph 

15 (2), not later than 5 years after the date on which the 

16 standards take effect, the Secretary shall issue a final rule 

17 to determine whether amending the applicable standards 

18 is technologically feasible and economically justified. 
97 

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1 ‘‘(B) Not later than 5 years after the effective date 

2 of any amended standards under subparagraph (A) or the 

3 publication of a final rule determining that amending the 

4 standards is not technologically feasible or economically 

5 justified, the Secretary shall issue a final rule to determine 

6 whether amending the standards established under para7 graph (1) or the amended standards, as applicable, is tech8 nologically feasible or economically justified. 

9 ‘‘(C) If the Secretary issues a final rule under sub10 paragraph (A) or (B) establishing amended standards, the 

11 final rule shall provide that the amended standards apply 

12 to products manufactured on or after the date that is— 

13 ‘‘(i) 3 years after the date on which the final 

14 amended standard is published; or 

15 ‘‘(ii) if the Secretary determines, by rule, that 

16 3 years is inadequate, not later than 5 years after 

17 the date on which the final amended standard is 

18 published. 

19 ‘‘(4) A final rule issued under paragraph (2) or (3) 

20 shall establish standards at the maximum level that is 

21 technically feasible and economically justified, as provided 

22 in subsections (o) and (p) of section 325.’’. 

23 (e) STANDARDS FOR COMMERCIAL CLOTHES WASH24 ERS.—Section 342 of the Energy Policy and Conservation 
98 

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1 Act (42 U.S.C. 6313) (as amended by subsection (d)) is 

2 amended by adding at the end the following: 

3 ‘‘(e) COMMERCIAL CLOTHES WASHERS.—(1) Each 

4 commercial clothes washer manufactured on or after Jan5 uary 1, 2007, shall have— 

6 ‘‘(A) a Modified Energy Factor of at least 1.26; 

7 and 

8 ‘‘(B) a Water Factor of not more than 9.5. 

9 ‘‘(2)(A)(i) Not later than January 1, 2010, the Sec10 retary shall publish a final rule to determine whether the 

11 standards established under paragraph (1) should be 

12 amended. 

13 ‘‘(ii) The rule published under clause (i) shall provide 

14 that any amended standard shall apply to products manu15 factured 3 years after the date on which the final amended 

16 standard is published. 

17 ‘‘(B)(i) Not later than January 1, 2015, the Sec18 retary shall publish a final rule to determine whether the 

19 standards established under paragraph (1) should be 

20 amended. 

21 ‘‘(ii) The rule published under clause (i) shall provide 

22 that any amended standard shall apply to products manu23 factured 3 years after the date on which the final amended 

24 standard is published.’’. 
99 

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1 (f) TEST PROCEDURES.—Section 343 of the Energy 

2 Policy and Conservation Act (42 U.S.C. 6314) is amend3 ed— 

4 (1) in subsection (a)— 

5 (A) in paragraph (4)— 

6 (i) in subparagraph (A), by inserting 

7 ‘‘very large commercial package air condi8 tioning and heating equipment,’’ after 

9 ‘‘large commercial package air conditioning 

10 and heating equipment,’’; and 

11 (ii) in subparagraph (B), by inserting 

12 ‘‘very large commercial package air condi13 tioning and heating equipment,’’ after 

14 ‘‘large commercial package air conditioning 

15 and heating equipment,’’; and 

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

17 ‘‘(6)(A)(i) In the case of commercial refrigerators, 

18 freezers, and refrigerator-freezers, the test procedures 

19 shall be— 

20 ‘‘(I) the test procedures determined by the Sec21 retary to be generally accepted industry testing pro22 cedures; or 

23 ‘‘(II) rating procedures developed or recognized 

24 by the ASHRAE or by the American National 

25 Standards Institute. 
100 

•S 10 PCS 

1 ‘‘(ii) In the case of self-contained refrigerators, freez2 ers, and refrigerator-freezers to which standards are appli3 cable under paragraphs (2) and (3) of section 342(c), the 

4 initial test procedures shall be the ASHRAE 117 test pro5 cedure that is in effect on January 1, 2005. 

6 ‘‘(B)(i) In the case of commercial refrigerators, freez7 ers, and refrigerators-freezers with doors covered by the 

8 standards adopted in February 2002, by the California 

9 Energy Commission, the rating temperatures shall be the 

10 integrated average temperature of 38 degrees F (± 2 de11 grees F) for refrigerator compartments and 0 degrees F 

12 (± 2 degrees F) for freezer compartments. 

13 ‘‘(C) The Secretary shall issue a rule in accordance 

14 with paragraphs (2) and (3) to establish the appropriate 

15 rating temperatures for the other products for which 

16 standards will be established under subsection 342(c)(4). 

17 ‘‘(D) In establishing the appropriate test tempera18 tures under this subparagraph, the Secretary shall follow 

19 the procedures and meet the requirements under section 

20 323(e). 

21 ‘‘(E)(i) Not later than 180 days after the publication 

22 of the new ASHRAE 117 test procedure, if the ASHRAE 

23 117 test procedure for commercial refrigerators, freezers, 

24 and refrigerator-freezers is amended, the Secretary shall, 

25 by rule, amend the test procedure for the product as nec-
101 

•S 10 PCS 

1 essary to ensure that the test procedure is consistent with 

2 the amended ASHRAE 117 test procedure, unless the 

3 Secretary makes a determination, by rule, and supported 

4 by clear and convincing evidence, that to do so would not 

5 meet the requirements for test procedures under para6 graphs (2) and (3). 

7 ‘‘(ii) If the Secretary determines that 180 days is an 

8 insufficient period during which to review and adopt the 

9 amended test procedure or rating procedure under clause 

10 (i), the Secretary shall publish a notice in the Federal 

11 Register stating the intent of the Secretary to wait not 

12 longer than 1 additional year before putting into effect 

13 an amended test procedure or rating procedure. 

14 ‘‘(F)(i) If a test procedure other than the ASHRAE 

15 117 test procedure is approved by the American National 

16 Standards Institute, the Secretary shall, by rule— 

17 ‘‘(I) review the relative strengths and weak18 nesses of the new test procedure relative to the 

19 ASHRAE 117 test procedure; and 

20 ‘‘(II) based on that review, adopt 1 new test 

21 procedure for use in the standards program. 

22 ‘‘(ii) If a new test procedure is adopted under clause 

23 (i)— 

24 ‘‘(I) section 323(e) shall apply; and 
102 

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1 ‘‘(II) subparagraph (B) shall apply to the 

2 adopted test procedure. 

3 ‘‘(7)(A) In the case of automatic commercial ice mak4 ers, the test procedures shall be the test procedures speci5 fied in Air-Conditioning and Refrigeration Institute 

6 Standard 810–2003, as in effect on January 1, 2005. 

7 ‘‘(B)(i) If Air-Conditioning and Refrigeration Insti8 tute Standard 810–2003 is amended, the Secretary shall 

9 amend the test procedures established in subparagraph 

10 (A) as necessary to be consistent with the amended Air11 Conditioning and Refrigeration Institute Standard, unless 

12 the Secretary determines, by rule, published in the Federal 

13 Register and supported by clear and convincing evidence, 

14 that to do so would not meet the requirements for test 

15 procedures under paragraphs (2) and (3). 

16 ‘‘(ii) If the Secretary issues a rule under clause (i) 

17 containing a determination described in clause (ii), the 

18 rule may establish an amended test procedure for the 

19 product that meets the requirements of paragraphs (2) 

20 and (3). 

21 ‘‘(C) The Secretary shall comply with section 323(e) 

22 in establishing any amended test procedure under this 

23 paragraph. 

24 ‘‘(8) With respect to commercial clothes washers, the 

25 test procedures shall be the same as the test procedures 
103 

•S 10 PCS 

1 established by the Secretary for residential clothes wash2 ers under section 325(g).’’; and 

3 (2) in subsection (d)(1), by inserting ‘‘very 

4 large commercial package air conditioning and heat5 ing equipment, commercial refrigerators, freezers, 

6 and refrigerator-freezers, automatic commercial ice 

7 makers, commercial clothes washers,’’ after ‘‘large 

8 commercial package air conditioning and heating 

9 equipment,’’. 

10 (g) LABELING.—Section 344(e) of the Energy Policy 

11 and Conservation Act (42 U.S.C. 6315(e)) is amended by 

12 inserting ‘‘very large commercial package air conditioning 

13 and heating equipment, commercial refrigerators, freezers, 

14 and refrigerator-freezers, automatic commercial ice mak15 ers, commercial clothes washers,’’ after ‘‘large commercial 

16 package air conditioning and heating equipment,’’ each 

17 place it appears. 

18 (h) ADMINISTRATION, PENALTIES, ENFORCEMENT, 

19 AND PREEMPTION.—Section 345 of the Energy Policy and 

20 Conservation Act (42 U.S.C. 6316) is amended— 

21 (1) in subsection (a)— 

22 (A) in paragraph (7), by striking ‘‘and’’ at 

23 the end; 

24 (B) in paragraph (8), by striking the pe25 riod at the end and inserting ‘‘; and’’; and 
104 

•S 10 PCS 

1 (C) by adding at the end the following: 

2 ‘‘(9) in the case of commercial clothes washers, 

3 section 327(b)(1) shall be applied as if the National 

4 Appliance Energy Conservation Act of 1987 was the 

5 Energy Policy Act of 2005.’’; 

6 (2) in the first sentence of subsection (b)(1), by 

7 striking ‘‘part B’’ and inserting ‘‘part A’’; and 

8 (3) by adding at the end the following: 

9 ‘‘(d)(1) Except as provided in paragraphs (2) and 

10 (3), section 327 shall apply with respect to very large com11 mercial package air conditioning and heating equipment 

12 to the same extent and in the same manner as section 

13 327 applies under part A on the date of enactment of this 

14 subsection. 

15 ‘‘(2) Any State or local standard issued before the 

16 date of enactment of this subsection shall not be pre17 empted until the standards established under section 

18 342(a)(9) take effect on January 1, 2010. 

19 ‘‘(e)(1)(A) Subsections (a), (b), and (d) of section 

20 326, subsections (m) through (s) of section 325, and sec21 tions 328 through 336 shall apply with respect to commer22 cial refrigerators, freezers, and refrigerator-freezers to the 

23 same extent and in the same manner as those provisions 

24 apply under part A. 
105 

•S 10 PCS 

1 ‘‘(B) In applying those provisions to commercial re2 frigerators, freezers, and refrigerator-freezers, paragraphs 

3 (1), (2), (3), and (4) of subsection (a) shall apply. 

4 ‘‘(2)(A) Section 327 shall apply to commercial refrig5 erators, freezers, and refrigerator-freezers for which 

6 standards are established under paragraphs (2) and (3) 

7 of section 342(c) to the same extent and in the same man8 ner as those provisions apply under part A on the date 

9 of enactment of this subsection, except that any State or 

10 local standard issued before the date of enactment of this 

11 subsection shall not be preempted until the standards es12 tablished under paragraphs (2) and (3) of section 342(c) 

13 take effect. 

14 ‘‘(B) In applying section 327 in accordance with sub15 paragraph (A), paragraphs (1), (2), and (3) of subsection 

16 (a) shall apply. 

17 ‘‘(3)(A) Section 327 shall apply to commercial refrig18 erators, freezers, and refrigerator-freezers for which 

19 standards are established under section 342(c)(4) to the 

20 same extent and in the same manner as the provisions 

21 apply under part A on the date of publication of the final 

22 rule by the Secretary, except that any State or local stand23 ard issued before the date of publication of the final rule 

24 by the Secretary shall not be preempted until the stand25 ards take effect. 
106 

•S 10 PCS 

1 ‘‘(B) In applying section 327 in accordance with sub2 paragraph (A), paragraphs (1), (2), and (3) of subsection 

3 (a) shall apply. 

4 ‘‘(4)(A) If the Secretary does not issue a final rule 

5 for a specific type of commercial refrigerator, freezer, or 

6 refrigerator-freezer within the time frame specified in sec7 tion 342(c)(5), subsections (b) and (c) of section 327 shall 

8 not apply to that specific type of refrigerator, freezer, or 

9 refrigerator-freezer for the period beginning on the date 

10 that is 2 years after the scheduled date for a final rule 

11 and ending on the date on which the Secretary publishes 

12 a final rule covering the specific type of refrigerator, freez13 er, or refrigerator-freezer. 

14 ‘‘(B) Any State or local standard issued before the 

15 date of publication of the final rule shall not be preempted 

16 until the final rule takes effect. 

17 ‘‘(5)(A) In the case of any commercial refrigerator, 

18 freezer, or refrigerator-freezer to which standards are ap19 plicable under paragraphs (2) and (3) of section 342(c), 

20 the Secretary shall require manufacturers to certify, 

21 through an independent, nationally recognized testing or 

22 certification program, that the commercial refrigerator, 

23 freezer, or refrigerator-freezer meets the applicable stand24 ard. 
107 

•S 10 PCS 

1 ‘‘(B) The Secretary shall, to the maximum extent 

2 practicable, encourage the establishment of at least 2 inde3 pendent testing and certification programs. 

4 ‘‘(C) As part of certification, information on equip5 ment energy use and interior volume shall be made avail6 able to the Secretary. 

7 ‘‘(f)(1)(A)(i) Except as provided in clause (ii), section 

8 327 shall apply to automatic commercial ice makers for 

9 which standards have been established under section 

10 342(d)(1) to the same extent and in the same manner as 

11 the section applies under part A on the date of enactment 

12 of this subsection. 

13 ‘‘(ii) Any State standard issued before the date of en14 actment of this subsection shall not be preempted until 

15 the standards established under section 342(d)(1) take ef16 fect. 

17 ‘‘(B) In applying section 327 to the equipment under 

18 subparagraph (A), paragraphs (1), (2), and (3) of sub19 section (a) shall apply. 

20 ‘‘(2)(A)(i) Except as provided in clause (ii), section 

21 327 shall apply to automatic commercial ice makers for 

22 which standards have been established under section 

23 342(d)(2) to the same extent and in the same manner as 

24 the section applies under part A on the date of publication 

25 of the final rule by the Secretary. 
108 

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1 ‘‘(ii) Any State standard issued before the date of 

2 publication of the final rule by the Secretary shall not be 

3 preempted until the standards established under section 

4 342(d)(2) take effect. 

5 ‘‘(B) In applying section 327 in accordance with sub6 paragraph (A), paragraphs (1), (2), and (3) of subsection 

7 (a) shall apply. 

8 ‘‘(3)(A) If the Secretary does not issue a final rule 

9 for a specific type of automatic commercial ice maker 

10 within the time frame specified in subsection 342(d), sub11 sections (b) and (c) of section 327 shall no longer apply 

12 to the specific type of automatic commercial ice maker for 

13 the period beginning on the day after the scheduled date 

14 for a final rule and ending on the date on which the Sec15 retary publishes a final rule covering the specific type of 

16 automatic commercial ice maker. 

17 ‘‘(B) Any State standard issued before the publica18 tion of the final rule shall not be preempted until the 

19 standards established in the final rule take effect. 

20 ‘‘(4)(A) The Secretary shall monitor whether manu21 facturers are reducing harvest rates below tested values 

22 for the purpose of bringing non-complying equipment into 

23 compliance. 

24 ‘‘(B) If the Secretary finds that there has been a sub25 stantial amount of manipulation with respect to harvest 
109 

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1 rates under subparagraph (A), the Secretary shall take 

2 steps to minimize the manipulation, such as requiring har3 vest rates to be within 5 percent of tested values. 

4 ‘‘(g)(1)(A) If the Secretary does not issue a final rule 

5 for commercial clothes washers within the timeframe spec6 ified in section 342(e)(2), subsections (b) and (c) of sec7 tion 327 shall not apply to commercial clothes washers for 

8 the period beginning on the day after the scheduled date 

9 for a final rule and ending on the date on which the Sec10 retary publishes a final rule covering commercial clothes 

11 washers. 

12 ‘‘(B) Any State or local standard issued before the 

13 date on which the Secretary publishes a final rule shall 

14 not be preempted until the standards established under 

15 section 342(e)(2) take effect. 

16 ‘‘(2) The Secretary shall undertake an educational 

17 program to inform owners of laundromats, multifamily 

18 housing, and other sites where commercial clothes washers 

19 are located about the new standard, including impacts on 

20 washer purchase costs and options for recovering those 

21 costs through coin collection.’’. 

22 SEC. 137. EXPEDITED RULEMAKING. 

23 (a) ADMINISTRATIVE PROCEDURE.—The first sen24 tence of section 325(p) of the Energy Policy and Con25 servation Act (42 U.S.C. 6295(p)) is amended by striking 
110 

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1 ‘‘Any’’ and inserting ‘‘Except as provided in subsection 

2 (u), any’’. 

3 (b) ADMINISTRATIVE PROCEDURE AND JUDICIAL

4 REVIEW.—The first sentence of section 336(b)(2) of the 

5 Energy Policy and Conservation Act (42 U.S.C. 

6 6306(b)(2)) is amended by striking ‘‘such chapter.’’ and 

7 inserting ‘‘that chapter, except, notwithstanding section 

8 706(2)(D) of title 5, United States Code, no direct final 

9 rule prescribed or withdrawn under section 325(u) may 

10 be held unlawful or set aside because of the failure of the 

11 Secretary to observe a procedure required by law other 

12 than the procedures required under section 325(u).’’. 

13 (c) CONFORMING AMENDMENT.—Section 345(b)(1) 

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

15 6316(b)(1)) is amended by inserting ‘‘section 325(u),’’ be16 fore ‘‘section 326(a)’’. 

17 SEC. 138. ENERGY LABELING. 

18 (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER

19 PRODUCT LABELING.—Section 324(a)(2) of the Energy 

20 Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is 

21 amended by adding at the end the following: 

22 ‘‘(F)(i) Not later than 90 days after the date of en23 actment of this subparagraph, the Commission shall ini24 tiate a rulemaking to consider— 
111 

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1 ‘‘(I) the effectiveness of the consumer products 

2 labeling program in assisting consumers in making 

3 purchasing decisions and improving energy effi4 ciency; and 

5 ‘‘(II) changes to the labeling rules (including 

6 categorical labeling) that would improve the effec7 tiveness of consumer product labels. 

8 ‘‘(ii) Not later than 2 years after the date of enact9 ment of this subparagraph, the Commission shall complete 

10 the rulemaking initiated under clause (i).’’. 

11 (b) RULEMAKING ON LABELING FOR ADDITIONAL

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

13 Conservation Act (42 U.S.C. 6294(a)) is amended by add14 ing at the end the following: 

15 ‘‘(5)(A) For covered products described in sub16 sections (u) through (ee) of section 325, after a test proce17 dure has been prescribed under section 323, the Secretary 

18 or the Commission, as appropriate, may prescribe, by rule, 

19 under this section labeling requirements for the products. 

20 ‘‘(B) In the case of products to which TP–1 stand21 ards under section 325(y) apply, labeling requirements 

22 shall be based on the ‘Standard for the Labeling of Dis23 tribution Transformer Efficiency’ prescribed by the Na24 tional Electrical Manufacturers Association (NEMA TP– 

25 3) as in effect on the date of enactment of this paragraph. 
112 

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1 ‘‘(C) In the case of dehumidifiers covered under sec2 tion 325(dd), the Commission shall not require an ‘Energy 

3 Guide’ label.’’. 

4 SEC. 139. ENERGY EFFICIENT ELECTRIC AND NATURAL GAS 

5 UTILITIES STUDY. 

6 (a) IN GENERAL.—Not later than 1 year after the 

7 date of enactment of this Act, the Secretary, in consulta8 tion with the National Association of Regulatory Utility 

9 Commissioners and the National Association of State En10 ergy Officials, shall conduct a study of State and regional 

11 policies that promote cost-effective programs to reduce en12 ergy consumption (including energy efficiency programs) 

13 that are carried out by— 

14 (1) utilities that are subject to State regulation; 

15 and 

16 (2) nonregulated utilities. 

17 (b) CONSIDERATION.—In conducting the study under 

18 subsection (a), the Secretary shall take into consider19 ation— 

20 (1) performance standards for achieving energy 

21 use and demand reduction targets; 

22 (2) funding sources, including rate surcharges; 

23 (3) infrastructure planning approaches (includ24 ing energy efficiency programs) and infrastructure 

25 improvements; 
113 

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1 (4) the costs and benefits of consumer edu2 cation programs conducted by State and local gov3 ernments and local utilities to increase consumer 

4 awareness of energy efficiency technologies and 

5 measures; and 

6 (5) methods of— 

7 (A) removing disincentives for utilities to 

8 implement energy efficiency programs; 

9 (B) encouraging utilities to undertake vol10 untary energy efficiency programs; and 

11 (C) ensuring appropriate returns on energy 

12 efficiency programs. 

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

14 of enactment of this Act, the Secretary shall submit to 

15 Congress a report that includes— 

16 (1) the findings of the study; and 

17 (2) any recommendations of the Secretary, in18 cluding recommendations on model policies to pro19 mote energy efficiency programs. 

20 SEC. 140. ENERGY EFFICIENCY PILOT PROGRAM. 

21 (a) IN GENERAL.—The Secretary shall establish a 

22 pilot program under which the Secretary provides financial 

23 assistance to at least 3, but not more than 7, States to 

24 carry out pilot projects in the States for— 
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1 (1) planning and adopting statewide programs 

2 that encourage, for each year in which the pilot 

3 project is carried out— 

4 (A) energy efficiency; and 

5 (B) reduction of consumption of electricity 

6 or natural gas in the State by at least 0.75 per7 cent, as compared to a baseline determined by 

8 the Secretary for the period preceding the im9 plementation of the program; or 

10 (2) for any State that has adopted a statewide 

11 program as of the date of enactment of this Act, ac12 tivities that reduce energy consumption in the State 

13 by expanding and improving the program. 

14 (b) VERIFICATION.—A State that receives financial 

15 assistance under subsection (a)(1) shall submit to the Sec16 retary independent verification of any energy savings 

17 achieved through the statewide program. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $5,000,000 for each of fiscal years 2006 through 2010, 

21 to remain available until expended. 

22 SEC. 141. ENERGY EFFICIENCY RESOURCE PROGRAMS. 

23 (a) ELECTRIC UTILITY PROGRAMS.—Section 111 of 

24 the Public Utilities Regulatory Policy Act of 1978 (16 
115 

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1 U.S.C. 2621) is amended by adding at the end the fol2 lowing: 

3 ‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.— 

4 ‘‘(1) DEFINITIONS.—In this subsection: 

5 ‘‘(A) DEMAND BASELINE.—The term ‘de6 mand baseline’ means the baseline determined 

7 by the Secretary for an appropriate period pre8 ceding the implementation of an energy effi9 ciency resource program. 

10 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO11 GRAMS.—The term ‘energy efficiency resource 

12 program’ means an energy efficiency or other 

13 demand reduction program that is designed to 

14 reduce annual electricity consumption or peak 

15 demand of consumers served by an electric util16 ity by a percentage of the demand baseline of 

17 the utility that is equal to not less than 0.75 

18 percent of the number of years during which 

19 the program is in effect. 

20 ‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.— 

21 ‘‘(A) As soon as practicable after the date 

22 of enactment of this subsection, but not later 

23 than 3 years after that date, each State regu24 latory authority (with respect to each electric 

25 utility over which the State has ratemaking au-
116 

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1 thority) and each nonregulated electric utility 

2 shall, after notice, conduct a public hearing on 

3 the benefits and feasibility of implementing an 

4 energy efficiency resource program. 

5 ‘‘(B) A State regulatory authority or non6 regulated utility shall implement an energy effi7 ciency resource program if, on the basis of a 

8 hearing under subparagraph (A), the State reg9 ulatory authority or nonregulated utility deter10 mines that the program would— 

11 ‘‘(i) benefit end-use customers; 

12 ‘‘(ii) be cost-effective based on total 

13 resource cost; 

14 ‘‘(iii) serve the public welfare; and 

15 ‘‘(iv) be feasible to implement. 

16 ‘‘(3) IMPLEMENTATION.— 

17 ‘‘(A) STATE REGULATORY AUTHORITIES.— 

18 If a State regulatory authority makes a deter19 mination under paragraph (2)(B), the State 

20 regulatory authority shall— 

21 ‘‘(i) require each electric utility over 

22 which the State has ratemaking authority 

23 to implement an energy efficiency resource 

24 program; and 
117 

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1 ‘‘(ii) allow such a utility to recover 

2 any expenditures incurred by the utility in 

3 implementing the energy efficiency re4 source program. 

5 ‘‘(B) NONREGULATED ELECTRIC UTILI6 TIES.—If a nonregulated electric utility makes 

7 a determination under paragraph (2)(B), the 

8 utility shall implement an energy efficiency re9 source program. 

10 ‘‘(4) UPDATING REGULATIONS.—A State regu11 latory authority or nonregulated utility may update 

12 periodically a determination under paragraph (2)(B) 

13 to determine whether an energy efficiency resource 

14 program should be— 

15 ‘‘(A) continued;, 

16 ‘‘(B) modified; or 

17 ‘‘(C) terminated. 

18 ‘‘(5) EXCEPTION.—Paragraph (2) shall not 

19 apply to a State regulatory authority (or any non20 regulated electric utility operating in the State) that 

21 demonstrates to the Secretary that an energy effi22 ciency resource program is in effect in the State.’’. 

23 (b) GAS UTILITIES.—Section 303 of the Public Utili24 ties Regulatory Policy Act of 1978 (15 U.S.C. 3203) is 

25 amended by adding at the end the following: 
118 

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1 ‘‘(e) ENERGY EFFICIENCY RESOURCE PROGRAMS.— 

2 ‘‘(1) DEFINITIONS.—In this subsection: 

3 ‘‘(A) DEMAND BASELINE.—The term ‘de4 mand baseline’ means the baseline determined 

5 by the Secretary for an appropriate period pre6 ceding the implementation of an energy effi7 ciency resource program. 

8 ‘‘(B) ENERGY EFFICIENCY RESOURCE PRO9 GRAMS.—The term ‘energy efficiency resource 

10 program’ means an energy efficiency or other 

11 demand reduction program that is designed to 

12 reduce annual gas consumption or peak demand 

13 of consumers served by a gas utility by a per14 centage of the demand baseline of the utility 

15 that is equal to not less than 0.75 percent of 

16 the number of years during which the program 

17 is in effect. 

18 ‘‘(2) PUBLIC HEARINGS; DETERMINATIONS.— 

19 ‘‘(A) As soon as practicable after the date 

20 of enactment of this subsection, but not later 

21 than 3 years after that date, each State regu22 latory authority (with respect to each gas utility 

23 over which the State has ratemaking authority) 

24 and each nonregulated gas utility shall, after 

25 notice, conduct a public hearing on the benefits 
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1 and feasibility of implementing an energy effi2 ciency resource program. 

3 ‘‘(B) A State regulatory authority or non4 regulated utility shall implement an energy effi5 ciency resource program if, on the basis of a 

6 hearing under subparagraph (A), the State reg7 ulatory authority or nonregulated utility deter8 mines that the program would— 

9 ‘‘(i) benefit end-use customers; 

10 ‘‘(ii) be cost-effective based on total 

11 resource cost; 

12 ‘‘(iii) serve the public welfare; and 

13 ‘‘(iv) be feasible to implement. 

14 ‘‘(3) IMPLEMENTATION.— 

15 ‘‘(A) STATE REGULATORY AUTHORITIES.— 

16 If a State regulatory authority makes a deter17 mination under paragraph (2)(B), the State 

18 regulatory authority shall— 

19 ‘‘(i) require each gas utility over 

20 which the State has ratemaking authority 

21 to implement an energy efficiency resource 

22 program; and 

23 ‘‘(ii) allow such a utility to recover 

24 any expenditures incurred by the utility in 
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1 implementing the energy efficiency re2 source program. 

3 ‘‘(B) NONREGULATED GAS UTILITIES.—If 

4 a nonregulated gas utility makes a determina5 tion under paragraph (2)(B), the utility shall 

6 implement an energy efficiency resource pro7 gram. 

8 ‘‘(4) UPDATING REGULATIONS.—A State regu9 latory authority or nonregulated utility may update 

10 periodically a determination under paragraph (2)(B) 

11 to determine whether an energy efficiency resource 

12 program should be— 

13 ‘‘(A) continued;, 

14 ‘‘(B) modified; or 

15 ‘‘(C) terminated. 

16 ‘‘(5) EXCEPTION.—Paragraph (2) shall not 

17 apply to a State regulatory authority (or any non18 regulated gas utility operating in the State) that 

19 demonstrates to the Secretary that an energy effi20 ciency resource program is in effect in the State.’’. 

21 Subtitle D—Measures to Conserve 

22 Petroleum 

23 SEC. 151. REDUCTION OF DEPENDENCE ON IMPORTED PE24 TROLEUM. 

25 (a) REPORT.— 
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1 (1) IN GENERAL.—Not later than February 1, 

2 2006, and annually thereafter, the President shall 

3 submit to Congress a report, based on the most re4 cent edition of the Annual Energy Outlook published 

5 by the Energy Information Administration, assessing 

6 the progress made by the United States toward the 

7 goal of reducing dependence on imported petroleum 

8 sources by 2015. 

9 (2) CONTENTS.—The report under subsection 

10 (a) shall— 

11 (A) include a description of the implemen12 tation, during the previous fiscal year, of provi13 sions under this Act relating to domestic crude 

14 petroleum production; 

15 (B) assess the effectiveness of those provi16 sions in meeting the goal described in para17 graph (1); and 

18 (C) describe the progress in developing and 

19 implementing measures under subsection (b). 

20 (b) MEASURES TO REDUCE IMPORT DEPENDENCE

21 THROUGH INCREASED DOMESTIC PETROLEUM CON22 SERVATION.— 

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

24 the date of enactment of this Act, the President 

25 shall develop and implement measures to conserve 
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1 petroleum in end-uses throughout the economy of 

2 the United States sufficient to reduce total demand 

3 for petroleum in the United States by 1,000,000 

4 barrels per day from the amount projected for cal5 endar year 2015 in the reference case contained in 

6 the report of the Energy Information Administration 

7 entitled ‘‘Annual Energy Outlook 2005’’. 

8 (2) CONTENTS.—The measures under para9 graph (1) shall be designed to ensure continued reli10 able and affordable energy for consumers. 

11 (3) IMPLEMENTATION.—The measures under 

12 paragraph (1) shall be implemented under existing 

13 authorities of appropriate Federal executive agencies 

14 identified by the President. 

15 Subtitle E—Energy Efficiency in 

16 Housing 

17 SEC. 161. PUBLIC HOUSING CAPITAL FUND. 

18 Section 9 of the United States Housing Act of 1937 

19 (42 U.S.C. 1437g) is amended— 

20 (1) in subsection (d)(1)— 

21 (A) in subparagraph (I), by striking ‘‘; 

22 and’’ and inserting a semicolon; 

23 (B) in subparagraph (J), by striking the 

24 period at the end and inserting a semicolon; 

25 and 
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1 (C) by adding at the end the following: 

2 ‘‘(K) improvement of energy and water-use 

3 efficiency by installing fixtures and fittings that 

4 conform to the American Society of Mechanical 

5 Engineers/American National Standards Insti6 tute standards A112.19.2–1998 and 

7 A112.18.1–2000, or any revision thereto, appli8 cable at the time of installation, and by increas9 ing energy efficiency and water conservation by 

10 such other means as the Secretary determines 

11 are appropriate; and 

12 ‘‘(L) integrated utility management and 

13 capital planning to maximize energy conserva14 tion and efficiency measures.’’; and 

15 (2) in subsection (e)(2)(C)— 

16 (A) by striking ‘‘The treatment’’ and in17 serting the following: 

18 ‘‘(i) IN GENERAL.—The treatment’’; 

19 and 

20 (B) by adding at the end the following: 

21 ‘‘(ii) THIRD PARTY CONTRACTS.— 

22 Contracts described in clause (i) may in23 clude contracts for— 

24 ‘‘(I) equipment conversions to 

25 less costly utility sources; 
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1 ‘‘(II) projects with resident-paid 

2 utilities; and 

3 ‘‘(III) adjustments to frozen base 

4 year consumption, including systems 

5 repaired to meet applicable building 

6 and safety codes and adjustments for 

7 occupancy rates increased by rehabili8 tation. 

9 ‘‘(iii) TERM OF CONTRACT.—The total 

10 term of a contract described in clause (i) 

11 shall not exceed 20 years to allow longer 

12 payback periods for retrofits, including— 

13 ‘‘(I) windows; 

14 ‘‘(II) heating system replace15 ments; 

16 ‘‘(III) wall insulation; 

17 ‘‘(IV) site-based generation; and 

18 ‘‘(V) advanced energy savings 

19 technologies, including renewable en20 ergy generation and other such retro21 fits.’’. 

22 SEC. 162. ENERGY EFFICIENT APPLIANCES. 

23 In purchasing appliances, a public housing agency 

24 shall purchase energy-efficient appliances that are Energy 

25 Star products or FEMP designated products, as such 
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1 terms are defined in section 552 of the National Energy 

2 Conservation Policy Act (42 U.S.C. 8251 et seq.) (as 

3 amended by section 104) unless the purchase of energy4 efficient appliances is not cost-effective to the agency. 

5 SEC. 163. ENERGY EFFICIENCY STANDARDS. 

6 Section 109 of the Cranston-Gonzalez National Af7 fordable Housing Act (42 U.S.C. 12709) is amended— 

8 (1) in subsection (a)— 

9 (A) in paragraph (1)— 

10 (i) by striking ‘‘ 1 year after the date 

11 of enactment of the Energy Policy Act of 

12 1992’’ and inserting ‘‘September 30, 

13 2006’’; 

14 (ii) in subparagraph (A), by striking 

15 ‘‘; and’’ and inserting a semicolon; 

16 (iii) in subparagraph (B), by striking 

17 the period at the end and inserting ‘‘; 

18 and’’; and 

19 (iv) by adding at the end the fol20 lowing: 

21 ‘‘(C) rehabilitation and new construction of 

22 public and assisted housing funded by HOPE 

23 VI revitalization grants, established under sec24 tion 24 of the United States Housing Act of 

25 1937 (42 U.S.C. 1437v), where such standards 
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1 are determined to be cost effective by the Sec2 retary of Housing and Urban Development.’’; 

3 and 

4 (B) in paragraph (2), in the first sentence, 

5 by inserting ‘‘, and, with respect to rehabilita6 tion and new construction of public and assisted 

7 housing funded by HOPE VI revitalization 

8 grants, established under section 24 of the 

9 United States Housing Act of 1937 (42 U.S.C. 

10 1437v), the 2003 International Energy Con11 servation Code’’ after ‘‘Standard 90.1–1989’)’’; 

12 (2) in subsection (b)— 

13 (A) by striking ‘‘within 1 year after the 

14 date of enactment of the Energy Policy Act of 

15 1992’’ and inserting ‘‘by September 30, 2006’’; 

16 and 

17 (B) by inserting ‘‘, and, with respect to re18 habilitation and new construction of public and 

19 assisted housing funded by HOPE VI revital20 ization grants, established under section 24 of 

21 the United States Housing Act of 1937 (42 

22 U.S.C. 1437v), the 2003 International Energy 

23 Conservation Code’’ after ‘‘Standard 90.1– 

24 1989’’; and 

25 (3) in subsection (c)— 
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1 (A) in the heading, by inserting ‘‘AND THE

2 INTERNATIONAL ENERGY CONSERVATION

3 CODE’’ after ‘‘MODEL ENERGY CODE’’; and 

4 (B) by inserting ‘‘, or, with respect to re5 habilitation and new construction of public and 

6 assisted housing funded by HOPE VI revital7 ization grants, established under section 24 of 

8 the United States Housing Act of 1937 (42 

9 U.S.C. 1437v), the 2003 International Energy 

10 Conservation Code’’ after ‘‘Standard 90.1– 

11 1989’’. 

12 SEC. 164. ENERGY STRATEGY FOR THE DEPARTMENT OF 

13 HOUSING AND URBAN DEVELOPMENT. 

14 (a) DEVELOPMENT OF STRATEGY.—The Secretary of 

15 Housing and Urban Development shall develop and imple16 ment an integrated energy strategy to reduce utility ex17 penses through cost-effective energy conservation and effi18 ciency measures and energy efficient design and construc19 tion of public and assisted housing. 

20 (b) CONTENTS OF STRATEGY.—The energy strategy 

21 required under subsection (a) shall include the develop22 ment of energy reduction goals and incentives for public 

23 housing agencies. 

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

25 of enactment of this Act, and every 2 years thereafter, 
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1 the Secretary of Housing and Urban Development shall 

2 submit to Congress a report describing— 

3 (1) the energy strategy required under sub4 section (a); 

5 (2) the actions taken by the Department of 

6 Housing and Urban Development to monitor the en7 ergy usage of public housing agencies; and 

8 (3) the progress, if any, in implementing the 

9 energy strategy required under subsection (a). 

10 TITLE II—RENEWABLE ENERGY 

11 Subtitle A—General Provisions 

12 SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RE13 SOURCES. 

14 (a) RESOURCE ASSESSMENTS.—Not later than 180 

15 days after the date of enactment of this Act and each year 

16 thereafter, the Secretary shall— 

17 (1) review the available assessments of renew18 able energy resources within the United States, in19 cluding solar, wind, biomass, ocean (tidal, wave, cur20 rent, and thermal), geothermal, and hydroelectric 

21 energy resources; and 

22 (2) undertake new assessments as necessary, 

23 taking into account changes in market conditions, 

24 available technologies, and other relevant factors. 

25 (b) REPORTS.— 
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1 (1) IN GENERAL.—Not later than 1 year after 

2 the date of enactment of this Act and each year 

3 thereafter, the Secretary shall publish a report based 

4 on the most recent assessment under subsection (a). 

5 (2) CONTENTS.—The report shall contain— 

6 (A) a detailed inventory describing the 

7 available quantity and characteristics of the re8 newable energy resources; and 

9 (B) such other information as the Sec10 retary determines would be useful in developing 

11 the renewable energy resources, including— 

12 (i) descriptions of surrounding ter13 rain, population and load centers, nearby 

14 energy infrastructure, and the location of 

15 energy and water resources; 

16 (ii) available estimates of the costs 

17 needed to develop each resource; 

18 (iii) an identification of any barriers 

19 to providing adequate transmission for re20 mote sources of renewable energy resources 

21 to current and emerging markets; 

22 (iv) recommendations for removing or 

23 addressing those barriers; and 

24 (v) recommendations for providing ac25 cess to the electrical grid that do not un-
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1 fairly disadvantage renewable or other en2 ergy producers. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the Secretary to carry 

5 out this section $10,000,000 for each of fiscal years 2006 

6 through 2010. 

7 SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

8 (a) INCENTIVE PAYMENTS.—Section 1212(a) of the 

9 Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is 

10 amended— 

11 (1) by striking the last sentence; 

12 (2) by designating the first, second, and third 

13 sentences as paragraphs (1), (2), and (3), respec14 tively; 

15 (3) in paragraph (3) (as so designated), by 

16 striking ‘‘and which satisfies’’ and all that follows 

17 through ‘‘deems necessary’’; and 

18 (4) by adding at the end the following: 

19 ‘‘(4)(A) Subject to subparagraph (B), if there are in20 sufficient appropriations to make full payments for electric 

21 production from all qualified renewable energy facilities 

22 for a fiscal year, the Secretary shall assign— 

23 ‘‘(i) 60 percent of appropriated funds for the 

24 fiscal year to facilities that use solar, wind, geo-
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1 thermal, or closed-loop (dedicated energy crops) bio2 mass technologies to generate electricity; and 

3 ‘‘(ii) 40 percent of appropriated funds for the 

4 fiscal year to other projects. 

5 ‘‘(B) After submitting to Congress an explanation of 

6 the reasons for the alteration, the Secretary may alter the 

7 percentage requirements of subparagraph (A).’’. 

8 (b) QUALIFIED RENEWABLE ENERGY FACILITY.— 

9 Section 1212(b) of the Energy Policy Act of 1992 (42 

10 U.S.C. 13317(b)) is amended— 

11 (1) by striking ‘‘a State or any political’’ and 

12 all that follows through ‘‘nonprofit electrical cooper13 ative’’ and inserting ‘‘a not-for-profit electric cooper14 ative, a public utility described in section 115 of the 

15 Internal Revenue Code of 1986, a State, Common16 wealth, territory, or possession of the United States, 

17 or the District of Columbia, or a political subdivision 

18 thereof, or an Indian tribal government or subdivi19 sion thereof,’’; and 

20 (2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio21 mass,’’. 

22 (c) ELIGIBILITY WINDOW.—Section 1212(c) of the 

23 Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is 

24 amended by striking ‘‘during the 10-fiscal year period be25 ginning with the first full fiscal year occurring after the 
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1 enactment of this section’’ and inserting ‘‘before October 

2 1, 2016’’. 

3 (d) PAYMENT PERIOD.—Section 1212(d) of the En4 ergy Policy Act of 1992 (42 U.S.C. 13317(d)) is amended 

5 in the second sentence by inserting ‘‘, or in which the Sec6 retary determines that all necessary Federal and State au7 thorizations have been obtained to begin construction of 

8 the facility’’ after ‘‘eligible for such payments’’. 

9 (e) AMOUNT OF PAYMENT.—Section 1212(e)(1) of 

10 the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) 

11 is amended in the first sentence by inserting ‘‘landfill 

12 gas,’’ after ‘‘wind, biomass,’’. 

13 (f) TERMINATION OF AUTHORITY.—Section 1212(f) 

14 of the Energy Policy Act of 1992 (42 U.S.C. 13317(f)) 

15 is amended by striking ‘‘the expiration of’’ and all that 

16 follows through ‘‘of this section’’ and inserting ‘‘Sep17 tember 30, 2026’’. 

18 (g) AUTHORIZATION OF APPROPRIATIONS.—Section 

19 1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) 

20 is amended by striking subsection (g) and inserting the 

21 following: 

22 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated such sums as are nec24 essary to carry out this section for each of fiscal years 

25 2006 through 2026, to remain available until expended.’’. 
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1 SEC. 203. FEDERAL PURCHASE REQUIREMENT. 

2 (a) DEFINITIONS.—In this section: 

3 (1) BIOMASS.—The term ‘‘biomass’’ means any 

4 solid, nonhazardous, cellulosic material that is de5 rived from— 

6 (A) any of the following forest-related re7 sources: mill residue, precommercial thinning, 

8 slash, brush, or nonmerchantable material; 

9 (B) a solid wood waste material— 

10 (i) including a waste pallet, crate, 

11 dunnage, manufacturing and construction 

12 wood waste (other than pressure-treated, 

13 chemically-treated, or painted wood waste), 

14 and landscape or right-of-way tree trim15 ming; but 

16 (ii) not including municipal solid 

17 waste (garbage), gas derived from the bio18 degradation of solid waste, or paper that is 

19 commonly recycled; 

20 (C) agriculture waste, including an orchard 

21 tree crop, vineyard, grain, legume, sugar, and 

22 other crop byproduct or residue, and a livestock 

23 waste nutrient; or 

24 (D) a plant that is grown exclusively as a 

25 fuel for the production of electricity. 
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1 (2) RENEWABLE ENERGY.—The term ‘‘renew2 able energy’’ means electric energy generated from 

3 solar, wind, biomass, landfill gas, geothermal, munic4 ipal solid waste, or new hydroelectric generation ca5 pacity achieved from increased efficiency or addi6 tions of new capacity at an existing hydroelectric 

7 project. 

8 (b) REQUIREMENT.—The President, acting through 

9 the Secretary, shall seek to ensure that, to the extent eco10 nomically feasible and technically practicable, of the total 

11 quantity of electric energy the Federal Government con12 sumes during any fiscal year, the following amounts shall 

13 be renewable energy: 

14 (1) Not less than 3 percent in each of fiscal 

15 years 2007 through 2009. 

16 (2) Not less than 5 percent in each of fiscal 

17 years 2010 through 2012. 

18 (3) Not less than 7.5 percent in fiscal year 

19 2013 and each fiscal year thereafter. 

20 (c) CALCULATION.—For purposes of determining 

21 compliance with the requirement of this section, the quan22 tity of renewable energy shall be doubled if— 

23 (1) the renewable energy is produced and used 

24 onsite at a Federal facility; 
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1 (2) the renewable energy is produced on Fed2 eral land and used at a Federal facility; or 

3 (3) the renewable energy is produced on Indian 

4 land (as defined in section 2601 of the Energy Pol5 icy Act of 1992) and used at a Federal facility. 

6 (d) REPORT.—Not later than April 15, 2007, and 

7 every 2 years thereafter, the Secretary shall provide to 

8 Congress a report on the progress of the Federal Govern9 ment in meeting the goals established by this section. 

10 SEC. 204. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL. 

11 (a) DEFINITIONS.—In this section: 

12 (1) CELLULOSIC BIOMASS ETHANOL.—The 

13 term ‘‘cellulosic biomass ethanol’’ means ethanol de14 rived from any lignocellulosic or hemicellulosic mat15 ter that is available on a renewable or recurring 

16 basis, including— 

17 (A) dedicated energy crops and trees; 

18 (B) wood and wood residues; 

19 (C) plants; 

20 (D) grasses; 

21 (E) agricultural residues; and 

22 (F) fibers. 

23 (2) RENEWABLE FUEL.— 

24 (A) IN GENERAL.—The term ‘‘renewable 

25 fuel’’ means motor vehicle fuel that— 
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1 (i)(I) is produced from grain, starch, 

2 oilseeds, sugar cane, sugar beets, sugar 

3 components, tobacco, potatoes, or other 

4 biomass; or 

5 (II) is natural gas produced from a 

6 biogas source, including a landfill, sewage 

7 waste treatment plant, feedlot, or other 

8 place where decaying organic material is 

9 found; and 

10 (ii) is used to replace or reduce the 

11 quantity of fossil fuel present in a fuel 

12 mixture used to operate a motor vehicle. 

13 (B) INCLUSIONS.—The term ‘‘renewable 

14 fuel’’ includes— 

15 (i) cellulosic biomass ethanol; 

16 (ii) waste derived ethanol; 

17 (iii) biodiesel (as defined in section 

18 312(f) of the Energy Policy Act of 1992 

19 (42 U.S.C. 13220(f)); and 

20 (iv) any blending components derived 

21 from renewable fuel, except that only the 

22 renewable fuel portion of the blending com23 ponent shall be considered part of the ap24 plicable volume under the renewable fuel 

25 program established by this section. 
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1 (3) SMALL REFINERY.—The term ‘‘small refin2 ery’’ means a refinery for which average aggregate 

3 daily crude oil throughput for the calendar year (as 

4 determined by dividing the aggregate throughput for 

5 the calendar year by the number of days in the cal6 endar year) does not exceed 75,000 barrels. 

7 (4) WASTE DERIVED ETHANOL.—The term 

8 ‘‘waste derived ethanol’’ means ethanol derived 

9 from— 

10 (A) animal wastes, including poultry fats 

11 and poultry wastes, and other waste materials; 

12 or 

13 (B) municipal solid waste. 

14 (b) RENEWABLE FUEL PROGRAM.— 

15 (1) IN GENERAL.— 

16 (A) REGULATIONS.—Not later than 1 year 

17 after the date of enactment of this Act, the Sec18 retary shall issue regulations ensuring that 

19 motor vehicle fuel sold or dispensed to con20 sumers in the contiguous United States, on an 

21 annual average basis, contains the applicable 

22 volume of renewable fuel specified in paragraph 

23 (2). 

24 (B) COMPLIANCE.—Regardless of the date 

25 of issuance, the regulations shall contain com-
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1 pliance provisions for refiners, blenders, and 

2 importers, as appropriate, to ensure that the re3 quirements of this section are met, but shall not 

4 restrict where renewable fuel can be used, or 

5 impose any per-gallon obligation for the use of 

6 renewable fuel. 

7 (C) NO REGULATIONS.—If the Secretary 

8 does not issue the regulations, the applicable 

9 percentage referred to in paragraph (3), on a 

10 volume percentage of gasoline basis, shall be 

11 3.2 in 2006. 

12 (2) APPLICABLE VOLUME.— 

13 (A) CALENDAR YEARS 2006 THROUGH

14 2012.—For the purpose of paragraph (1), the 

15 applicable volume for any of calendar years 

16 2006 through 2012 shall be determined in ac17 cordance with the following table: 

Applicable volume of renewable fuel 

Calendar year: (In billions of gallons) 

2006 ..................................................................................... 4.0

2007 ..................................................................................... 4.7

2008 ..................................................................................... 5.4

2009 ..................................................................................... 6.1

2010 ..................................................................................... 6.8

2011 ..................................................................................... 7.4

2012 ..................................................................................... 8.0

18 (B) CALENDAR YEARS 2013 AND THERE19 AFTER.— 

20 (i) IN GENERAL.—Subject to clause 

21 (ii), for the purpose of paragraph (1), the 
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1 applicable volume for calendar year 2013 

2 and each calendar year thereafter shall be 

3 determined by the Secretary, in coordina4 tion with the Secretary of Agriculture and 

5 the Administrator of the Environmental 

6 Protection Agency, based on a review of 

7 the implementation of the program during 

8 calendar years 2006 through 2012, includ9 ing a review of— 

10 (I) the impact of the use of re11 newable fuels on the environment, air 

12 quality, energy security, job creation, 

13 and rural economic development; and 

14 (II) the expected annual rate of 

15 future production of renewable fuels, 

16 including cellulosic ethanol. 

17 (ii) MINIMUM QUANTITY DERIVED

18 FROM CELLULOSIC BIOMASS.—For cal19 endar year 2013 and each calendar year 

20 thereafter— 

21 (I) the applicable volume referred 

22 to in clause (i) shall contain a min23 imum of 250,000,000 gallons that are 

24 derived from cellulosic biomass; and 
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1 (II) the 2.5-to-1 ratio referred to 

2 in subsection (e) shall not apply. 

3 (C) LIMITATION.—An increase in the ap4 plicable volume for a calendar year under sub5 paragraph (B) shall be not less than the prod6 uct obtained by multiplying— 

7 (i) the number of gallons of gasoline 

8 that the Secretary estimates will be sold or 

9 introduced into commerce during the cal10 endar year; and 

11 (ii) the quotient obtained by divid12 ing— 

13 (I) 8,000,000,000; by 

14 (II) the number of gallons of gas15 oline sold or introduced into com16 merce during calendar year 2012. 

17 (c) NONCONTIGUOUS STATE OPT-IN.— 

18 (1) IN GENERAL.—On the petition of a non19 contiguous State, the Secretary may allow the re20 newable fuel program established under this subtitle 

21 to apply in the noncontiguous State at the same 

22 time or any time after the Secretary issues regula23 tions under subsection (b). 

24 (2) OTHER ACTIONS.—The Secretary may— 
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1 (A) issue or revise regulations under sub2 section (b); 

3 (B) establish applicable percentages under 

4 subsection (d); 

5 (C) provide for the generation of credits 

6 under subsection (f); and 

7 (D) take such other actions as are nec8 essary to allow for the application of the renew9 able fuels program in a noncontiguous State. 

10 (d) APPLICABLE PERCENTAGES.— 

11 (1) PROVISION OF ESTIMATE OF VOLUMES OF

12 GASOLINE SALES.—Not later than October 31 of 

13 each of calendar years 2006 through 2011, the Ad14 ministrator of the Energy Information Administra15 tion shall provide to the Secretary an estimate of the 

16 volumes of gasoline that will be sold or introduced 

17 into commerce in the United States during the fol18 lowing calendar year. 

19 (2) DETERMINATION OF APPLICABLE PERCENT20 AGES.— 

21 (A) IN GENERAL.—Not later than Novem22 ber 30 of each of calendar years 2006 through 

23 2011, based on the estimate provided under 

24 paragraph (1), the Secretary shall determine 

25 and publish in the Federal Register, with re-
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1 spect to the following calendar year, the renew2 able fuel obligation that ensures that the re3 quirements under subsection (b) are met. 

4 (B) REQUIRED ELEMENTS.—The renew5 able fuel obligation determined for a calendar 

6 year under subparagraph (A) shall— 

7 (i) be applicable to refiners, blenders, 

8 and importers, as appropriate; 

9 (ii) be expressed in terms of a volume 

10 percentage of gasoline sold or introduced 

11 into commerce; and 

12 (iii) subject to paragraph (3)(A), con13 sist of a single applicable percentage that 

14 applies to all categories of persons speci15 fied in clause (i). 

16 (3) ADJUSTMENTS.—In determining the appli17 cable percentage for a calendar year, the Secretary 

18 shall make adjustments— 

19 (A) to prevent the imposition of redundant 

20 obligations to any person specified in paragraph 

21 (2)(B)(i); and 

22 (B) to account for the use of renewable 

23 fuel during the previous calendar year by small 

24 refineries that are exempt under subsection (i). 
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1 (e) EQUIVALENCY.—For the purpose of subsection 

2 (b), 1 gallon of either cellulosic biomass ethanol or waste 

3 derived ethanol shall be considered to be the equivalent 

4 of 2.5 gallons of renewable fuel. 

5 (f) CREDIT PROGRAM.— 

6 (1) REGULATIONS.—The regulations issued to 

7 carry out this section shall provide for— 

8 (A) the generation of an appropriate 

9 amount of credits by any person that refines, 

10 blends, or imports gasoline that contains a 

11 quantity of renewable fuel that is greater than 

12 the quantity required under subsection (b); 

13 (B) the generation of an appropriate 

14 amount of credits for biodiesel fuel; and 

15 (C) if a small refinery notifies the Sec16 retary that the small refinery waives the exemp17 tion provided by this section, the generation of 

18 credits by the small refinery beginning in the 

19 year following the notification. 

20 (2) USE OF CREDITS.—A person that generates 

21 credits under paragraph (1) may use the credits, or 

22 transfer all or a portion of the credits to another 

23 person, for the purpose of complying with subsection 

24 (b). 
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1 (3) LIFE OF CREDITS.—A credit generated 

2 under this paragraph shall be valid to demonstrate 

3 compliance for the calendar year in which the credit 

4 was generated. 

5 (4) INABILITY TO PURCHASE SUFFICIENT

6 CREDITS.—The regulations issued to carry out this 

7 section shall include provisions permitting any per8 son that is unable to generate or purchase sufficient 

9 credits to meet the requirement under subsection (b) 

10 to carry forward a renewable fuels deficit if, for the 

11 calendar year following the year in which the renew12 able fuels deficit is created— 

13 (A) the person achieves compliance with 

14 the renewable fuels requirement under sub15 section (b); and 

16 (B) generates or purchases additional re17 newable fuels credits to offset the renewable 

18 fuels deficit of the preceding year. 

19 (g) SEASONAL VARIATIONS IN RENEWABLE FUEL

20 USE.— 

21 (1) STUDY.—For each of calendar years 2006 

22 through 2012, the Administrator of the Energy In23 formation Administration shall conduct a study of 

24 renewable fuels blending to determine whether there 
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1 are excessive seasonal variations in the use of renew2 able fuels. 

3 (2) REGULATION OF EXCESSIVE SEASONAL

4 VARIATIONS.—If, for any calendar year, the Admin5 istrator of the Energy Information Administration, 

6 based on the study under subparagraph (A), makes 

7 the determinations specified in paragraph (3), the 

8 Secretary shall issue regulations to ensure that 35 

9 percent or more of the quantity of renewable fuels 

10 necessary to meet the requirements under subsection 

11 (b) is used during each of the periods specified in 

12 paragraph (4) of each subsequent calendar year. 

13 (3) DETERMINATIONS.—The determinations re14 ferred to in paragraph (2) are that— 

15 (A) less than 35 percent of the quantity of 

16 renewable fuels necessary to meet the require17 ments under subsection (b) has been used dur18 ing 1 of the periods specified in paragraph (4) 

19 of the calendar year; 

20 (B) a pattern of excessive seasonal vari21 ation described in subparagraph (A) will con22 tinue in subsequent calendar years; and 

23 (C) issuing regulations or other require24 ments to impose a 35 percent or more seasonal 

25 use of renewable fuels will not— 
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1 (i) prevent or interfere with the at2 tainment of national ambient air quality 

3 standards; or 

4 (ii) significantly increase the price of 

5 motor fuels to the consumer. 

6 (4) PERIODS.—The 2 periods referred to in this 

7 paragraph are— 

8 (A) April through September; and 

9 (B) January through March and October 

10 through December. 

11 (5) STATE EXEMPTION FROM SEASONALITY RE12 QUIREMENTS.—Notwithstanding any other provision 

13 of law, a seasonality requirement relating to the use 

14 of renewable fuel established in accordance with this 

15 subsection shall not apply to any State that receives 

16 a waiver under section 209(b) of the Clean Air Act 

17 (42 U.S.C. 7543(b)). 

18 (h) WAIVERS.— 

19 (1) IN GENERAL.—The Secretary, in consulta20 tion with the Secretary of Agriculture and the Ad21 ministrator of the Environmental Protection Agency, 

22 may waive the requirements under subsection (b), in 

23 whole or in part, on a petition by 1 or more States 

24 by reducing the national quantity of renewable fuel 

25 required under this section— 
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1 (A) based on a determination by the Sec2 retary, after public notice and opportunity for 

3 comment, that implementation of the require4 ment would severely harm the economy or envi5 ronment of a State, a region, or the United 

6 States; or 

7 (B) based on a determination by the Sec8 retary, after public notice and opportunity for 

9 comment, that there is an inadequate domestic 

10 supply to meet the requirement. 

11 (2) PETITIONS FOR WAIVERS.—Not later than 

12 90 days after the date on which a petition is re13 ceived by the Secretary under paragraph (1), the 

14 Secretary, in consultation with the Secretary of Ag15 riculture and the Administrator of the Environ16 mental Protection Agency, shall approve or dis17 approve the petition. 

18 (3) TERMINATION OF WAIVERS.—A waiver 

19 granted under paragraph (1) shall terminate on the 

20 date that is 1 year after the date on which the waiv21 er was granted, but may be renewed by the Sec22 retary, after consultation with the Secretary of Agri23 culture and the Administrator of the Environmental 

24 Protection Agency. 

25 (i) SMALL REFINERIES.— 
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1 (1) IN GENERAL.—Subsection (b) shall not 

2 apply to small refineries until the first calendar year 

3 beginning more than 5 years after the first year set 

4 forth in the table in subsection (b)(2)(A). 

5 (2) STUDY.—Not later than December 31, 

6 2008, the Secretary shall complete a study to deter7 mine whether the requirements under subsection (b) 

8 would impose a disproportionate economic hardship 

9 on small refineries. 

10 (3) SMALL REFINERIES AND ECONOMIC HARD11 SHIP.—For any small refinery that the Secretary de12 termines would experience a disproportionate eco13 nomic hardship, the Secretary shall extend the small 

14 refinery exemption for the small refinery for not less 

15 than 2 additional years. 

16 (4) ECONOMIC HARDSHIP.— 

17 (A) EXTENSION OF EXEMPTION.—A small 

18 refinery may at any time petition the Secretary 

19 for an extension of the exemption from the re20 quirements under subsection (b) for the reason 

21 of disproportionate economic hardship. 

22 (B) EVALUATION.—In evaluating a hard23 ship petition, the Secretary, in consultation 

24 with the Administrator and Secretary of Agri-
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1 culture, shall consider the findings of the study 

2 in addition to other economic factors. 

3 (C) DEADLINE FOR ACTION ON PETI4 TIONS.—The Secretary shall act on any petition 

5 submitted by a small refinery for a hardship ex6 emption not later than 90 days after the receipt 

7 of the petition. 

8 (5) CREDIT PROGRAM.—Subsection (f)(1)(C) 

9 shall apply to each small refinery that waives an ex10 emption under this paragraph. 

11 (6) OPT-IN FOR SMALL REFINERS.—A small re12 finery shall be subject to subsection (b) if the small 

13 refinery notifies the Secretary that the small refinery 

14 waives the exemption under paragraph (3). 

15 (j) CELLULOSIC BIOMASS AND CANE SUGAR LOAN

16 GUARANTEE PROGRAM.— 

17 (1) IN GENERAL.—Subject to the availability of 

18 appropriations, funds shall be made available, and 

19 remain available until expended, to pay the cost (as 

20 defined in the Federal Credit Reform Act of 1990 

21 (2 U.S.C. 661 et seq.)) of loan guarantees issued 

22 under section 19 of the Federal Nonnuclear Energy 

23 Research and Development Act of 1974 (42 U.S.C. 

24 5919) to carry out commercial demonstration 
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1 projects for cellulosic biomass and sucrose-derived 

2 ethanol. 

3 (2) DEMONSTRATION PROJECTS.— 

4 (A) IN GENERAL.—The Secretary shall 

5 issue loan guarantees under this section to 

6 carry out projects to commercially demonstrate 

7 the feasibility and viability of converting cel8 lulosic biomass derived from agricultural res9 idue such as corn stover or straw or cane sugar 

10 and related products into ethanol. 

11 (B) DESIGN CAPACITY.—Each project shall 

12 have a design capacity to produce at least 

13 15,000,000 gallons of cellulose ethanol each 

14 year. 

15 (3) APPLICANT ASSURANCES.—An applicant for 

16 a loan guarantee under this section shall provide as17 surances, satisfactory to the Secretary, that— 

18 (A) the project design has been validated 

19 through the operation of a continuous process 

20 facility with a cumulative output of at least 

21 50,000 gallons of ethanol; 

22 (B) the project has been subject to a full 

23 technical review; 

24 (C) the project is covered by adequate 

25 project performance guarantees; 
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1 (D) the project, with the loan guarantee, is 

2 economically viable; and 

3 (E) there is a reasonable assurance of re4 payment of the guaranteed loan. 

5 (4) LIMITATIONS.— 

6 (A) MAXIMUM GUARANTEE.—Except as 

7 provided in subparagraph (B), notwithstanding 

8 section 19(c)(2)(A) of the Federal Nonnuclear 

9 Energy Research and Development Act of 1974 

10 (42 U.S.C. 5919(c)(2)(A)), a loan guarantee 

11 under this section may be issued for up to 80 

12 percent of the estimated cost of a project, but 

13 may not exceed $250,000,000 for a project. 

14 (B) ADDITIONAL GUARANTEES.— 

15 (i) IN GENERAL.—The Secretary may 

16 issue additional loan guarantees for a 

17 project to cover up to 80 percent of the ex18 cess of actual project cost over estimated 

19 project cost but not to exceed 15 percent 

20 of the amount of the original guarantee. 

21 (ii) PRINCIPAL AND INTEREST.—Sub22 ject to subparagraph (A), the Secretary 

23 shall guarantee 100 percent of the prin24 cipal and interest of a loan made under 

25 subparagraph (A). 
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1 (5) EQUITY CONTRIBUTIONS.—To be eligible 

2 for a loan guarantee under this section, an applicant 

3 for the loan guarantee shall have binding commit4 ments from equity investors to provide an initial eq5 uity contribution of at least 20 percent of the total 

6 project cost. 

7 (6) EFFECT OF OTHER LAWS.—The following 

8 provisions are inapplicable to a loan guarantee made 

9 under this section: 

10 (A) Subsections (m) and (p) of section 19 

11 of the Federal Nonnuclear Energy Research 

12 and Development Act of 1974 (42 U.S.C. 

13 5919). 

14 (B) The first, third, and fourth sentences 

15 of section 19(g)(4) of that Act. 

16 (7) APPLICATION.—An application for a loan 

17 guarantee under this section shall be approved or 

18 disapproved by the Secretary not later than 90 days 

19 after the application is received by the Secretary. 

20 SEC. 205. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE 

21 AND BIODIESEL PURCHASING REQUIRE22 MENT. 

23 (a) IN GENERAL.—Title III of the Energy Policy Act 

24 of 1992 is amended by striking section 306 (42 U.S.C. 

25 13215) and inserting the following: 
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1 ‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASO2 LINE AND BIODIESEL PURCHASING REQUIRE3 MENT. 

4 ‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of 

5 each Federal agency shall ensure that, in areas in which 

6 ethanol-blended gasoline is reasonably available at a gen7 erally competitive price, the Federal agency purchases eth8 anol-blended gasoline containing at least 10 percent eth9 anol rather than nonethanol-blended gasoline, for use in 

10 vehicles used by the agency that use gasoline. 

11 ‘‘(b) BIODIESEL.— 

12 ‘‘(1) DEFINITION OF BIODIESEL.—In this sub13 section, the term ‘biodiesel’ has the meaning given 

14 the term in section 312(f). 

15 ‘‘(2) REQUIREMENT.—The head of each Fed16 eral agency shall ensure that the Federal agency 

17 purchases, for use in fueling fleet vehicles that use 

18 diesel fuel used by the Federal agency at the loca19 tion at which fleet vehicles of the Federal agency are 

20 centrally fueled, in areas in which the biodiesel21 blended diesel fuel described in subparagraphs (A) 

22 and (B) is available at a generally competitive 

23 price— 

24 ‘‘(A) as of the date that is 5 years after 

25 the date of enactment of this paragraph, bio26 diesel-blended diesel fuel that contains at least 
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1 2 percent biodiesel, rather than nonbiodiesel2 blended diesel fuel; and 

3 ‘‘(B) as of the date that is 10 years after 

4 the date of enactment of this paragraph, bio5 diesel-blended diesel fuel that contains at least 

6 20 percent biodiesel, rather than nonbiodiesel7 blended diesel fuel. 

8 ‘‘(3) REQUIREMENT OF FEDERAL LAW.—The 

9 provisions of this subsection shall not be considered 

10 a requirement of Federal law for the purposes of 

11 section 312. 

12 ‘‘(c) EXEMPTION.—This section does not apply to 

13 fuel used in vehicles excluded from the definition of ‘fleet’ 

14 by subparagraphs (A) through (H) of section 301(9).’’. 

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

16 of contents of the Energy Policy Act of 1992 (42 U.S.C. 

17 prec. 13201) is amended by striking the item relating to 

18 section 306 and inserting the following: 

‘‘Sec. 306. Federal agency ethanol-blended gasoline and biodiesel purchasing requirement.’’. 

19 SEC. 206. DATA COLLECTION. 

20 Section 205 of the Department of Energy Organiza21 tion Act (42 U.S.C. 7135) is amended by adding at the 

22 end the following: 

23 ‘‘(m)(1) In order to improve the ability to evaluate 

24 the effectiveness of the renewable fuels mandate of the 
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1 United States, the Administrator shall conduct and pub2 lish the results of a survey of renewable fuels demand in 

3 the motor vehicle fuels market in the United States 

4 monthly, and in a manner designed to protect the con5 fidentiality of individual responses. 

6 ‘‘(2) In conducting the survey, the Administrator 

7 shall collect information both on a national and regional 

8 basis, including— 

9 ‘‘(A) information on— 

10 ‘‘(i) the quantity of renewable fuels pro11 duced; 

12 ‘‘(ii) the quantity of renewable fuels blend13 ed; 

14 ‘‘(iii) the quantity of renewable fuels im15 ported; and 

16 ‘‘(iv) the quantity of renewable fuels de17 manded; and 

18 ‘‘(B) market price data.’’. 

19 SEC. 207. SUGAR CANE ETHANOL PROGRAM. 

20 (a) DEFINITION OF PROGRAM.—In this section, the 

21 term ‘‘program’’ means the Sugar Cane Ethanol Program 

22 established by subsection (b). 

23 (b) ESTABLISHMENT.—There is established within 

24 the Department a program to be known as the ‘‘Sugar 

25 Cane Ethanol Program’’. 
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1 (c) PROJECT.— 

2 (1) IN GENERAL.—Subject to the availability of 

3 appropriations under subsection (d), in carrying out 

4 the program, the Secretary shall establish a project 

5 that is— 

6 (A) carried out in multiple States— 

7 (i) in each of which is produced cane 

8 sugar that is eligible for loans under sec9 tion 156 of the Federal Agriculture Im10 provement and Reform Act of 1996 (7 

11 U.S.C. 7272), or a similar subsequent au12 thority; and 

13 (ii) at the option of each such State, 

14 that have an incentive program that re15 quires the use of ethanol in the State; and 

16 (B) designed to study the production of 

17 ethanol from cane sugar, sugarcane, and sugar18 cane byproducts. 

19 (2) REQUIREMENTS.—A project described in 

20 paragraph (1) shall— 

21 (A) be limited to the production of ethanol 

22 in the States of Florida, Louisiana, Texas, and 

23 Hawaii in a way similar to the existing program 

24 for the processing of corn for ethanol to dem25 onstrate that the process may be applicable to 
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1 cane sugar, sugarcane, and sugarcane byprod2 ucts; 

3 (B) include information on the ways in 

4 which the scale of production may be replicated 

5 once the sugar cane industry has located sites 

6 for, and constructed, ethanol production facili7 ties; and 

8 (C) not last more than 3 years. 

9 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to carry out this section 

11 $36,000,000, to remain available until expended. 

12 SEC. 208. MODIFICATION OF COMMODITY CREDIT COR13 PORATION BIOENERGY PROGRAM. 

14 Section 9010(a)(3)(A) of the Farm Security and 

15 Rural Investment Act of 2002 (7 U.S.C. 8108(a)(3)(A)) 

16 is amended by inserting ‘‘potatoes, sugarcane, sugar beets, 

17 products of sugarcane or sugar beets,’’ after ‘‘sesame 

18 seed,’’. 

19 SEC. 209. ADVANCED BIOFUEL TECHNOLOGIES PROGRAM. 

20 (a) IN GENERAL.—Subject to the availability of ap21 propriations under subsection (d), the Secretary shall, in 

22 consultation with the Secretary of Agriculture and the 

23 Biomass Research and Development Technical Advisory 

24 Committee established under section 306 of the Biomass 

25 Research and Development Act of 2000 (Public Law 106– 
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1 224; 7 U.S.C. 8101 note), establish a program, to be 

2 known as the ‘‘Advanced Biofuel Technologies Program’’, 

3 to demonstrate advanced technologies for the production 

4 of alternative transportation fuels. 

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

6 subsection (a), the Secretary shall give priority to projects 

7 that enhance the geographical diversity of alternative fuels 

8 production and utilize feedstocks that represent 10 per9 cent or less of ethanol or biodiesel fuel production in the 

10 United States during the previous fiscal year. 

11 (c) DEMONSTRATION PROJECTS.— 

12 (1) IN GENERAL.—As part of the program 

13 under subsection (a), the Secretary shall fund dem14 onstration projects— 

15 (A) to develop not less than 4 different 

16 conversion technologies for producing cellulosic 

17 biomass ethanol; and 

18 (B) to develop not less than 5 technologies 

19 for coproducing value-added bioproducts (such 

20 as fertilizers, herbicides, and pesticides) result21 ing from the production of biodiesel fuel. 

22 (2) ADMINISTRATION.—Demonstration projects 

23 under this subsection shall be— 

24 (A) conducted based on a merit-reviewed, 

25 competitive process; and 
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1 (B) subject to the cost-sharing require2 ments of section 1002. 

3 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $110,000,000 for each of fiscal years 2006 through 2010. 

6 SEC. 210. ASSISTANCE FOR RURAL COMMUNITIES WITH 

7 HIGH ENERGY COSTS. 

8 Beginning on the date of enactment of this Act and 

9 notwithstanding any other provision of law, the Secretary 

10 and the Administrator of the Rural Utilities Service shall 

11 use the authorities provided under the Rural Electrifica12 tion Act of 1936 (7 U.S.C. 901 et seq.) and section 

13 331(b)(4) of the Consolidated Farm and Rural Develop14 ment Act (7 U.S.C. 1981(b)(4)) (including deferral, exten15 sion, refinancing, restructuring, and reduction of loans 

16 made under those Acts) to aid electric borrowers that 

17 serve rural communities in Alaska with extremely high en18 ergy costs to— 

19 (1) reduce rates for customers; 

20 (2) maintain reliable service; 

21 (3) preserve the economic feasibility of the elec22 tric systems; and 

23 (4) avoid default. 
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1 Subtitle B—Insular Energy 

2 SEC. 221. DEFINITIONS. 

3 In this subtitle: 

4 (1) DISTRIBUTED GENERATION.—The term 

5 ‘‘distributed generation’’ means energy supplied in a 

6 rural or off-grid area. 

7 (2) INSULAR AREA.—The term ‘‘insular area’’ 

8 means— 

9 (A) Guam; 

10 (B) American Samoa; 

11 (C) the Commonwealth of the Northern 

12 Mariana Islands; 

13 (D) the Federated States of Micronesia; 

14 (E) the Republic of the Marshall Islands; 

15 (F) the Republic of Palau; 

16 (G) the United States Virgin Islands; and 

17 (H) the Commonwealth of Puerto Rico. 

18 SEC. 222. ASSESSMENT. 

19 (a) IN GENERAL.—Not later than 1 year after the 

20 date of enactment of this Act, the Secretary (in consulta21 tion with the Secretary of Interior) shall— 

22 (1) conduct an assessment of the energy needs 

23 of insular areas; and 

24 (2) submit a report describing the results of the 

25 assessment to— 
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1 (A) the Committee on Energy and Natural 

2 Resources of the Senate; 

3 (B) the Committee on Energy and Com4 merce of the House of Representatives; and 

5 (C) the Committee on Resources of the 

6 House of Representatives. 

7 (b) STRATEGIES AND PROJECTS.—In conducting the 

8 assessment, for each of the insular areas, the Secretary 

9 shall identify and evaluate the strategies or projects with 

10 the greatest potential for reducing the dependence of the 

11 insular area on imported fossil fuels as used for the gen12 eration of electricity, including strategies and projects 

13 for— 

14 (1) improved supply-side efficiency of central15 ized electrical generation, transmission, and distribu16 tion systems; 

17 (2) improved demand-side management 

18 through— 

19 (A) the application of established stand20 ards for energy efficiency for appliances; 

21 (B) the conduct of energy audits for busi22 ness and industrial customers; and 

23 (C) the use of energy savings performance 

24 contracts; 
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1 (3) increased use of renewable energy, includ2 ing— 

3 (A) solar thermal energy for electric gen4 eration; 

5 (B) solar thermal energy for water heating 

6 in large buildings, such as hotels, hospitals, 

7 government buildings, and residences; 

8 (C) photovoltaic energy; 

9 (D) wind energy; 

10 (E) hydroelectric energy; 

11 (F) wave energy; 

12 (G) energy from ocean thermal resources, 

13 including ocean thermal-cooling for community 

14 air conditioning; 

15 (H) water vapor condensation for the pro16 duction of potable water; 

17 (I) fossil fuel and renewable hybrid elec18 trical generation systems; and 

19 (J) other strategies or projects that the 

20 Secretary may identify as having significant po21 tential; and 

22 (4) fuel substitution and minimization with in23 digenous biofuels, such as coconut oil. 

24 (c) DISTRIBUTED GENERATION.—In conducting the 

25 assessment, for each insular area with a significant need 
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1 for distributed generation, the Secretary shall identify and 

2 evaluate the most promising strategies and projects de3 scribed in paragraphs (3) and (4) of subsection (b) for 

4 meeting that need. 

5 (d) FACTORS.—In assessing the potential of any 

6 strategy or project under this section, the Secretary shall 

7 consider— 

8 (1) the estimated cost of the power or energy 

9 to be produced, including— 

10 (A) any additional costs associated with 

11 the distribution of the generation; and 

12 (B) the long-term availability of the gen13 eration source; 

14 (2) the capacity of the local electrical utility to 

15 manage, operate, and maintain any project that may 

16 be undertaken; and 

17 (3) other factors the Secretary considers to be 

18 appropriate. 

19 SEC. 223. PROJECT FEASIBILITY STUDIES. 

20 (a) IN GENERAL.—On a request described in sub21 section (b), the Secretary shall conduct a feasibility study 

22 of a project to implement a strategy or project identified 

23 under section 222 as having the potential to— 

24 (1) significantly reduce the dependence of an 

25 insular area on imported oil; or 
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1 (2) provide needed distributed generation to an 

2 insular area. 

3 (b) REQUEST.—The Secretary shall conduct a feasi4 bility study under subsection (a) on— 

5 (1) the request of an electric utility located in 

6 an insular area that commits to fund at least 10 

7 percent of the cost of the study; and 

8 (2) if the electric utility is located in the Fed9 erated States of Micronesia, the Republic of the 

10 Marshall Islands, or the Republic of Palau, written 

11 support for that request by the President or the Am12 bassador of the affected freely associated state. 

13 (c) CONSULTATION.—The Secretary shall consult 

14 with regional utility organizations in— 

15 (1) conducting feasibility studies under sub16 section (a); and 

17 (2) determining the feasibility of potential 

18 projects. 

19 (d) FEASIBILITY.—For the purpose of a feasibility 

20 study under subsection (a), a project shall be determined 

21 to be feasible if the project would significantly reduce the 

22 dependence of an insular area on imported fossil fuels, or 

23 provide needed distributed generation to an insular area, 

24 at a reasonable cost. 
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1 SEC. 224. IMPLEMENTATION. 

2 (a) IN GENERAL.—On a determination by the Sec3 retary (in consultation with the Secretary of the Interior) 

4 that a project is feasible under section 223 and a commit5 ment by an electric utility to operate and maintain the 

6 project, the Secretary may provide such technical and fi7 nancial assistance as the Secretary determines is appro8 priate for the implementation of the project. 

9 (b) REGIONAL UTILITY ORGANIZATIONS.—In pro10 viding assistance under subsection (a), the Secretary shall 

11 consider providing the assistance through regional utility 

12 organizations. 

13 SEC. 225. AUTHORIZATION OF APPROPRIATIONS. 

14 (a) IN GENERAL.—There are authorized to be appro15 priated to the Secretary— 

16 (1) $500,000 for the completion of the assess17 ment under section 222; 

18 (2) $500,000 for each fiscal year for project 

19 feasibility studies under section 223; and 

20 (3) $5,000,000 for each fiscal year for project 

21 implementation under section 224. 

22 (b) LIMITATION OF FUNDS RECEIVED BY INSULAR

23 AREAS.—No insular area may receive, during any 3-year 

24 period, more than 20 percent of the total funds made 

25 available during that 3-year period under paragraphs (2) 

26 and (3) of subsection (a) unless the Secretary determines 
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1 that providing funding in excess of that percentage best 

2 advances existing opportunities to meet the objectives of 

3 this subtitle. 

4 Subtitle C—Biomass Energy 

5 SEC. 231. DEFINITIONS. 

6 In this subtitle: 

7 (1) BIOMASS.—The term ‘‘biomass’’ means 

8 nonmerchantable material from, or precommercial 

9 thinnings of, trees and woody plants produced from 

10 treatments— 

11 (A) to reduce hazardous fuels; 

12 (B) to reduce or contain disease or insect 

13 infestations; or 

14 (C) to restore forest health. 

15 (2) ELIGIBLE COMMUNITY.—The term ‘‘eligible 

16 community’’ means an Indian Reservation, or a 

17 county, town, township, municipality, or other simi18 lar unit of local government with a population of not 

19 more than 50,000 individuals that the Secretary de20 termines is located in an area near Federal or In21 dian land, that is— 

22 (A) at significant risk of catastrophic wild23 fire, disease, or insect infestation; or 

24 (B) diseased or infested by insects. 
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1 (3) ELIGIBLE OPERATION.—The term ‘‘eligible 

2 operation’’ means a facility that— 

3 (A) is located within the boundaries of an 

4 eligible community; and 

5 (B) uses biomass from Federal or Indian 

6 land as a raw material to produce electric en7 ergy, sensible heat, or transportation fuels. 

8 (4) GREEN TON.—The term ‘‘green ton’’ means 

9 2,000 pounds of biomass that has not been mechani10 cally or artificially dried. 

11 (5) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

12 has the meaning given the term in section 4(e) of 

13 the Indian Self-Determination and Education Assist14 ance Act (25 U.S.C. 450b(e)). 

15 (6) PERSON.—The term ‘‘person’’ includes— 

16 (A) an individual; 

17 (B) an eligible community; 

18 (C) an Indian tribe; 

19 (D) a small business or a corporation that 

20 is incorporated in the United States; and 

21 (E) a nonprofit organization. 

22 (7) SECRETARY.—The term ‘‘Secretary’’ 

23 means— 
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1 (A) the Secretary of Agriculture, with re2 spect to land within the National Forest Sys3 tem; or 

4 (B) the Secretary of the Interior, with re5 spect to Federal land under the jurisdiction of 

6 the Secretary of the Interior and Indian land. 

7 SEC. 232. BIOMASS COMMERCIAL UTILIZATION GRANT PRO8 GRAM. 

9 (a) IN GENERAL.—The Secretary may make grants 

10 to any person that owns or operates an eligible operation 

11 to offset the costs incurred to purchase biomass for use 

12 by the eligible operation. 

13 (b) PRIORITY.—In making grants under subsection 

14 (a), the Secretary shall give priority to eligible operations 

15 that use biomass from the highest risk areas, as deter16 mined by the Secretary. 

17 (c) GRANT AMOUNT.—A grant provided under this 

18 section may not exceed $20 per green ton of biomass deliv19 ered. 

20 (d) MONITORING OF GRANT RECIPIENT ACTIVI21 TIES.— 

22 (1) IN GENERAL.—As a condition of a grant 

23 under this section, the grant recipient shall keep 

24 such records as the Secretary may require to fully 
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1 and correctly disclose the use of the grant funds and 

2 all transactions involved in the purchase of biomass. 

3 (2) ACCESS.—On notice by the Secretary, the 

4 grant recipient shall provide the Secretary reason5 able access to examine the inventory and records of 

6 the eligible operation. 

7 (e) AUTHORIZATION OF APPROPRIATIONS.— 

8 (1) IN GENERAL.—There are authorized to be 

9 appropriated to carry out this section for each of fis10 cal years 2006 through 2010— 

11 (A) $12,500,000 to the Secretary of Agri12 culture; and 

13 (B) $12,500,000 to the Secretary of the 

14 Interior. 

15 (2) AVAILABILITY.—Amounts made available 

16 under paragraph (1) shall remain available until ex17 pended. 

18 SEC. 233. IMPROVED BIOMASS UTILIZATION PROGRAM. 

19 (a) IN GENERAL.—The Secretary may provide grants 

20 to persons in eligible communities to offset the costs of 

21 developing or researching proposals to improve the use of 

22 biomass or add value to biomass utilization. 

23 (b) SELECTION.—Grant recipients shall be selected 

24 based on the potential of a proposal to— 
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1 (1) develop affordable thermal or electric energy 

2 resources for the benefit of an eligible community; 

3 (2) provide opportunities for the creation or ex4 pansion of small business concerns within an eligible 

5 community; 

6 (3) create new job opportunities within an eligi7 ble community; 

8 (4) improve efficiency or develop cleaner tech9 nologies for biomass utilization; and 

10 (5) reduce the hazardous fuel from the highest 

11 risk areas. 

12 (c) LIMITATION.—No grant provided under this sec13 tion shall exceed $500,000. 

14 (d) AUTHORIZATION OF APPROPRIATIONS.— 

15 (1) IN GENERAL.—There are authorized to be 

16 appropriated to carry out this section for each of fis17 cal years 2006 through 2010— 

18 (A) $12,500,000 to the Secretary of Agri19 culture; and 

20 (B) $12,500,000 to the Secretary of the 

21 Interior. 

22 (2) AVAILABILITY.—Amounts made available 

23 under paragraph (1) shall remain available until ex24 pended. 
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1 SEC. 234. REPORT. 

2 Not later than 3 years after the date of enactment 

3 of this Act, the Secretary of Agriculture and the Secretary 

4 of the Interior shall jointly submit to Congress a report 

5 that describes the interim results of the programs carried 

6 out under sections 232 and 233. 

7 Subtitle D—Geothermal Energy 

8 SEC. 241. COMPETITIVE LEASE SALE REQUIREMENTS. 

9 Section 4 of the Geothermal Steam Act of 1970 (30 

10 U.S.C. 1003) is amended to read as follows: 

11 ‘‘SEC. 4. LEASING PROCEDURES. 

12 ‘‘(a) NOMINATIONS.—The Secretary shall accept 

13 nominations of land to be leased at any time from quali14 fied companies and individuals under this Act. 

15 ‘‘(b) COMPETITIVE LEASE SALE REQUIRED.— 

16 ‘‘(1) IN GENERAL.—Except as otherwise specifi17 cally provided by this Act, all land to be leased that 

18 is not subject to leasing under subsection (c) shall 

19 be leased as provided in this subsection to the high20 est responsible qualified bidder, as determined by 

21 the Secretary. 

22 ‘‘(2) COMPETITIVE LEASE SALES.—The Sec23 retary shall hold a competitive lease sale at least 

24 once every 2 years for land in a State that has nomi25 nations pending under subsection (a) if the land is 

26 otherwise available for leasing. 
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1 ‘‘(c) NONCOMPETITIVE LEASING.—The Secretary 

2 shall make available for a period of 2 years for non3 competitive leasing any tract for which a competitive lease 

4 sale is held, but for which the Secretary does not receive 

5 any bids in a competitive lease sale. 

6 ‘‘(d) PENDING LEASE APPLICATIONS.— 

7 ‘‘(1) IN GENERAL.—It shall be a priority for 

8 the Secretary, and for the Secretary of Agriculture 

9 with respect to National Forest Systems land, to en10 sure timely completion of administrative actions nec11 essary to process applications for geothermal leasing 

12 pending on May 19, 2005. 

13 ‘‘(2) ADMINISTRATION.—An application de14 scribed in paragraph (1) and any lease issued pursu15 ant to the application— 

16 ‘‘(A) except as provided in subparagraph 

17 (B), shall be subject to this section as in effect 

18 on the day before the date of enactment of this 

19 paragraph; or 

20 ‘‘(B) at the election of the applicant, shall 

21 be subject to this section as in effect on the ef22 fective date of this paragraph.’’. 
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1 SEC. 242. DIRECT USE. 

2 (a) FEES FOR DIRECT USE.—Section 5 of the Geo3 thermal Steam Act of 1970 (30 U.S.C. 1004) is amend4 ed— 

5 (1) in subsection (c), by redesignating para6 graphs (1) and (2) as subparagraphs (A) and (B), 

7 respectively; 

8 (2) by redesignating subsections (a) through (d) 

9 as paragraphs (1) through (4), respectively; 

10 (3) by inserting ‘‘(a) IN GENERAL.—’’ after 

11 ‘‘SEC. 5.’’; and 

12 (4) by adding at the end the following: 

13 ‘‘(d) DIRECT USE.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding subsection 

15 (a)(1), the Secretary shall establish a schedule of 

16 fees, in lieu of royalties for geothermal resources, 

17 that a lessee or its affiliate— 

18 ‘‘(A) uses for a purpose other than the 

19 commercial generation of electricity; and 

20 ‘‘(B) does not sell. 

21 ‘‘(2) SCHEDULE OF FEES.—The schedule of 

22 fees— 

23 ‘‘(A) may be based on the quantity or ther24 mal content, or both, of geothermal resources 

25 used or any other basis that the Secretary finds 

26 appropriate under the circumstances; and 
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1 ‘‘(B) shall ensure a fair return to the 

2 United States for use of the resource. 

3 ‘‘(3) STATE OR LOCAL GOVERNMENTS.—If a 

4 State or local government is the lessee and uses geo5 thermal resources without sale and for purposes 

6 other than commercial generation of electricity, the 

7 Secretary shall charge only a nominal fee for use of 

8 the resource.’’. 

9 (b) LEASING FOR DIRECT USE.—Section 4 of the 

10 Geothermal Steam Act of 1970 (30 U.S.C. 1003) (as 

11 amended by section 241) is amended adding at the end 

12 the following: 

13 ‘‘(e) LEASING FOR DIRECT USE OF GEOTHERMAL

14 RESOURCES.—Notwithstanding subsection (b), the Sec15 retary may identify areas in which the land to be leased 

16 under this Act exclusively for direct use of geothermal re17 sources without sale for purposes other than commercial 

18 generation of electricity may be leased to any qualified ap19 plicant that first applies for such a lease under regulations 

20 issued by the Secretary, if the Secretary— 

21 ‘‘(1) publishes a notice of the land proposed for 

22 leasing not later than 120 days before the date of 

23 the issuance of the lease; 

24 ‘‘(2) does not receive during the 120-day period 

25 beginning on the date of the publication any nomi-
175 

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1 nation to include the land concerned in the next 

2 competitive lease sale; and 

3 ‘‘(3) determines there is no competitive interest 

4 in the land to be leased. 

5 ‘‘(f) AREA SUBJECT TO LEASE FOR DIRECT USE.— 

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

7 geothermal lease for the direct use of geothermal re8 sources shall cover not more than the quantity of 

9 acreage determined by the Secretary to be reason10 ably necessary for the proposed use. 

11 ‘‘(2) LIMITATIONS.—The quantity of acreage 

12 covered by the lease shall not exceed the limitations 

13 established under section 7.’’. 

14 SEC. 243. ROYALTIES. 

15 (a) CALCULATION OF ROYALTIES.— 

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

17 the date of enactment of this Act, the Secretary of 

18 the Interior shall issue a final regulation that pro19 vides a simplified methodology for calculating the 

20 royalty under subsection (a)(1) of section 5 of the 

21 Geothermal Steam Act of 1970 (30 U.S.C. 1004) 

22 (as amended by section 242(a)). 

23 (2) CONSIDERATIONS.—In issuing the final reg24 ulation under paragraph (1), the Secretary shall— 
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1 (A) consider the use of a method based on 

2 gross proceeds from the sale of electricity; and 

3 (B) ensure that the final regulation issued 

4 under paragraph (1) results in the same level of 

5 royalty revenues over a 10-year period as the 

6 regulation in effect on the day before the date 

7 of enactment of this Act. 

8 (b) ROYALTY UNDER EXISTING LEASES.— 

9 (1) IN GENERAL.—Any lessee under a lease 

10 issued under the Geothermal Steam Act of 1970 (30 

11 U.S.C. 1001 et seq.) before the date of enactment 

12 of this Act may, within the time period specified in 

13 paragraph (2), submit to the Secretary of the Inte14 rior a request to modify the terms of the lease relat15 ing to payment of royalties to comply with— 

16 (A) in the case of a lease that meets the 

17 requirements of subsection (b) of section 5 of 

18 the Geothermal Steam Act of 1970 (30 U.S.C. 

19 1004) (as amended by section 242(a)), the 

20 schedule of fees established under that section; 

21 and 

22 (B) in the case of any other lease, the 

23 methodology established under subsection (a). 
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1 (2) TIMING.—A request for a modification 

2 under paragraph (1) shall be submitted to the Sec3 retary by the date that is not later than— 

4 (A) in the case of a lease for direct use, 18 

5 months after the effective date of the schedule 

6 of fees established by the Secretary under sec7 tion 5 of the Geothermal Steam Act of 1970 

8 (30 U.S.C. 1004); or 

9 (B) in the case of any other lease, 18 

10 months after the effective date of the final reg11 ulation issued under subsection (a). 

12 (3) APPLICATION OF MODIFICATION.—If the 

13 lessee requests modification of a lease under para14 graph (1)— 

15 (A) the Secretary shall modify the lease to 

16 comply with— 

17 (i) in the case of a lease for direct 

18 use, the schedule of fees established by the 

19 Secretary under section 5 of the Geo20 thermal Steam Act of 1970 (30 U.S.C. 

21 1004); or 

22 (ii) in the case of any other lease, the 

23 methodology established under subsection 

24 (a); and 
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1 (B) the modification shall apply to any use 

2 of geothermal steam and any associated geo3 thermal resources to which subsection (a) ap4 plies that occurs after the date of the modifica5 tion. 

6 (4) CONSULTATION.—The Secretary shall con7 sult with the State and local governments affected 

8 by any proposed changes in lease royalty terms 

9 under this subsection. 

10 SEC. 244. GEOTHERMAL LEASING AND PERMITTING ON 

11 FEDERAL LAND. 

12 (a) IN GENERAL.—Not later than 180 days after the 

13 date of enactment of this section, the Secretary of the In14 terior and the Secretary of Agriculture shall enter into, 

15 and submit to Congress, a memorandum of understanding 

16 in accordance with this section regarding leasing and per17 mitting for geothermal development of public land and Na18 tional Forest System land under the respective jurisdic19 tions of the Secretaries. 

20 (b) LEASE AND PERMIT APPLICATIONS.—The memo21 randum of understanding shall— 

22 (1) identify areas with geothermal potential on 

23 land included in the National Forest System and, if 

24 necessary, require review of management plans to 
179 

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1 consider leasing under the Geothermal Steam Act of 

2 1970 (30 U.S.C. 1001 et seq.) as a land use; and 

3 (2) establish an administrative procedure for 

4 processing geothermal lease applications, including 

5 lines of authority, steps in application processing, 

6 and time limits for application processing. 

7 (c) DATA RETRIEVAL SYSTEM.—The memorandum 

8 of understanding shall establish a joint data retrieval sys9 tem that— 

10 (1) is capable of tracking lease and permit ap11 plications; and 

12 (2) provides to the applicant information as to 

13 the status of an application within the Departments 

14 of the Interior and Agriculture, including an esti15 mate of the time required for administrative action. 

16 SEC. 245. ASSESSMENT OF GEOTHERMAL ENERGY POTEN17 TIAL. 

18 Not later than 3 years after the date of enactment 

19 of this Act and thereafter as the availability of data and 

20 developments in technology warrants, the Secretary of the 

21 Interior, acting through the Director of the United States 

22 Geological Survey and in cooperation with the States, 

23 shall— 

24 (1) update the Assessment of Geothermal Re25 sources made during 1978; and 
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1 (2) submit to Congress the updated assessment. 

2 SEC. 246. COOPERATIVE OR UNIT PLANS. 

3 Section 18 of the Geothermal Steam Act of 1970 (30 

4 U.S.C. 1017) is amended to read as follows: 

5 ‘‘SEC. 18. UNIT AND COMMUNITIZATION AGREEMENTS. 

6 ‘‘(a) ADOPTION OF UNITS BY LESSEES.— 

7 ‘‘(1) IN GENERAL.—For the purpose of more 

8 properly conserving the natural resources of any 

9 geothermal reservoir, field, or like area, or any part 

10 thereof (whether or not any part of the geothermal 

11 reservoir, field, or like area, is subject to any cooper12 ative plan of development or operation (referred to 

13 in this section as a ‘unit agreement’)), lessees there14 of and their representatives may unite with each 

15 other, or jointly or separately with others, in collec16 tively adopting and operating under a unit agree17 ment for the reservoir, field, or like area, or any 

18 part thereof, including direct use resources, if deter19 mined and certified by the Secretary to be necessary 

20 or advisable in the public interest. 

21 ‘‘(2) MAJORITY INTEREST OF SINGLE

22 LEASES.—A majority interest of owners of any sin23 gle lease shall have the authority to commit the lease 

24 to a unit agreement. 
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1 ‘‘(3) INITIATIVE OF SECRETARY.—The Sec2 retary may also initiate the formation of a unit 

3 agreement, or require an existing Federal lease to 

4 commit to a unit agreement, if in the public interest. 

5 ‘‘(4) MODIFICATION OF LEASE REQUIREMENTS

6 BY SECRETARY.— 

7 ‘‘(A) IN GENERAL.—The Secretary may, in 

8 the discretion of the Secretary and with the 

9 consent of the holders of leases involved, estab10 lish, alter, change, or revoke rates of operations 

11 (including drilling, operations, production, and 

12 other requirements) of the leases and make con13 ditions with respect to the leases, with the con14 sent of the lessees, in connection with the cre15 ation and operation of any such unit agreement 

16 as the Secretary may consider necessary or ad17 visable to secure the protection of the public in18 terest. 

19 ‘‘(B) UNLIKE TERMS OR RATES.—Leases 

20 with unlike lease terms or royalty rates shall 

21 not be required to be modified to be in the 

22 same unit. 

23 ‘‘(b) REQUIREMENT OF PLANS UNDER NEW

24 LEASES.—The Secretary may— 
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1 ‘‘(1) provide that geothermal leases issued 

2 under this Act shall contain a provision requiring 

3 the lessee to operate under a unit agreement; and 

4 ‘‘(2) prescribe the unit agreement under which 

5 the lessee shall operate, which shall adequately pro6 tect the rights of all parties in interest, including the 

7 United States. 

8 ‘‘(c) MODIFICATION OF RATE OF PROSPECTING, DE9 VELOPMENT, AND PRODUCTION.—The Secretary may re10 quire that any unit agreement authorized by this section 

11 that applies to land owned by the United States contain 

12 a provision under which authority is vested in the Sec13 retary, or any person, committee, or State or Federal offi14 cer or agency as may be designated in the unit agreement 

15 to alter or modify, from time to time, the rate of 

16 prospecting and development and the quantity and rate 

17 of production under the unit agreement. 

18 ‘‘(d) EXCLUSION FROM DETERMINATION OF HOLD19 ING OR CONTROL.—Any land that is subject to a unit 

20 agreement approved or prescribed by the Secretary under 

21 this section shall not be considered in determining hold22 ings or control under section 7. 

23 ‘‘(e) POOLING OF CERTAIN LAND.—If separate 

24 tracts of land cannot be independently developed and oper-
183 

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1 ated to use geothermal steam and associated geothermal 

2 resources pursuant to any section of this Act— 

3 ‘‘(1) the land, or a portion of the land, may be 

4 pooled with other land, whether or not owned by the 

5 United States, for purposes of development and op6 eration under a communitization agreement pro7 viding for an apportionment of production or royal8 ties among the separate tracts of land comprising 

9 the production unit, if the pooling is determined by 

10 the Secretary to be in the public interest; and 

11 ‘‘(2) operation or production pursuant to the 

12 communitization agreement shall be treated as oper13 ation or production with respect to each tract of 

14 land that is subject to the communitization agree15 ment. 

16 ‘‘(f) UNIT AGREEMENT REVIEW.— 

17 ‘‘(1) IN GENERAL.—Not later than 5 years 

18 after the date of approval of any unit agreement and 

19 at least every 5 years thereafter, the Secretary 

20 shall— 

21 ‘‘(A) review each unit agreement; and 

22 ‘‘(B) after notice and opportunity for com23 ment, eliminate from inclusion in the unit 

24 agreement any land that the Secretary deter-
184 

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1 mines is not reasonably necessary for unit oper2 ations under the unit agreement. 

3 ‘‘(2) BASIS FOR ELIMINATION.—The elimi4 nation shall— 

5 ‘‘(A) be based on scientific evidence; and 

6 ‘‘(B) occur only if the elimination is deter7 mined by the Secretary to be for the purpose of 

8 conserving and properly managing the geo9 thermal resource. 

10 ‘‘(3) EXTENSION.—Any land eliminated under 

11 this subsection shall be eligible for an extension 

12 under section 6(g) if the land meets the require13 ments for the extension. 

14 ‘‘(g) DRILLING OR DEVELOPMENT CONTRACTS.— 

15 ‘‘(1) IN GENERAL.—The Secretary may, on 

16 such conditions as the Secretary may prescribe, ap17 prove drilling or development contracts made by 1 or 

18 more lessees of geothermal leases, with 1 or more 

19 persons, associations, or corporations if, in the dis20 cretion of the Secretary, the conservation of natural 

21 resources or the public convenience or necessity may 

22 require or the interests of the United States may be 

23 best served by the approval. 

24 ‘‘(2) HOLDINGS OR CONTROL.—Each lease op25 erated under an approved drilling or development 
185 

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1 contract, and interest under the contract, shall be 

2 excepted in determining holdings or control under 

3 section 7. 

4 ‘‘(h) COORDINATION WITH STATE GOVERNMENTS.— 

5 The Secretary shall coordinate unitization and pooling ac6 tivities with appropriate State agencies.’’. 

7 SEC. 247. ROYALTY ON BYPRODUCTS. 

8 Section 5 of the Geothermal Steam Act of 1970 (30 

9 U.S.C. 1004) (as amended by section 242(a)) is amended 

10 in subsection (a) by striking paragraph (2) and inserting 

11 the following: 

12 ‘‘(2) a royalty on any byproduct that is a min13 eral specified in the first section of the Mineral 

14 Leasing Act (30 U.S.C. 181), and that is derived 

15 from production under the lease, at the rate of the 

16 royalty that applies under that Act to production of 

17 the mineral under a lease under that Act;’’. 

18 SEC. 248. LEASE DURATION AND WORK COMMITMENT RE19 QUIREMENTS. 

20 Section 6(i) of the Geothermal Steam Act of 1970 

21 (30 U.S.C. 1005(i)) is amended by striking paragraph (2) 

22 and inserting the following: 

23 ‘‘(2) The Secretary shall, by regulation, establish pay24 ments under this subsection at levels that ensure the dili25 gent development of the lease.’’. 
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1 SEC. 249. ANNUAL RENTAL. 

2 (a) ANNUAL RENTAL RATE.—Section 5 of the Geo3 thermal Steam Act of 1970 (30 U.S.C. 1004) (as amended 

4 by section 242(a)) is amended in subsection (a) by striking 

5 paragraph (3) and inserting the following: 

6 ‘‘(3) payment in advance of an annual rental of 

7 not less than— 

8 ‘‘(A) for each of the first through tenth 

9 years of the lease— 

10 ‘‘(i) in the case of a lease awarded in 

11 a noncompetitive lease sale, $1 per acre or 

12 fraction thereof; or 

13 ‘‘(ii) in the case of a lease awarded in 

14 a competitive lease sale, $2 per acre or 

15 fraction thereof for the first year and $3 

16 per acre or fraction thereof for each of the 

17 second through 10th years; and 

18 ‘‘(B) for each year after the 10th year of 

19 the lease, $5 per acre or fraction thereof;’’. 

20 (b) TERMINATION OF LEASE FOR FAILURE TO PAY

21 RENTAL.—Section 5 of the Geothermal Steam Act of 

22 1970 (30 U.S.C. 1004) (as amended by section 242(a)) 

23 is amended by adding at the end the following: 

24 ‘‘(c) TERMINATION OF LEASE FOR FAILURE TO PAY

25 RENTAL.— 
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1 ‘‘(1) IN GENERAL.—The Secretary shall termi2 nate any lease with respect to which rental is not 

3 paid in accordance with this Act and the terms of 

4 the lease under which the rental is required, on the 

5 expiration of the 45-day period beginning on the 

6 date of the failure to pay the rental. 

7 ‘‘(2) NOTIFICATION.—The Secretary shall 

8 promptly notify a lessee that has not paid rental re9 quired under the lease that the lease will be termi10 nated at the end of the period referred to in para11 graph (1). 

12 ‘‘(3) REINSTATEMENT.—A lease that would 

13 otherwise terminate under paragraph (1) shall not 

14 terminate under that paragraph if the lessee pays to 

15 the Secretary, before the end of the period referred 

16 to in paragraph (1), the amount of rental due plus 

17 a late fee equal to 10 percent of the amount.’’. 

18 SEC. 250. ADVANCED ROYALTIES REQUIRED FOR CES19 SATION OF PRODUCTION. 

20 Section 5 of the Geothermal Steam Act of 1970 

21 (30 U.S.C. 1004) (as amended by section 249(b)) is 

22 amended by adding at the end the following: 

23 ‘‘(d) ADVANCED ROYALTIES REQUIRED FOR CES24 SATION OF PRODUCTION.— 
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1 ‘‘(1) IN GENERAL.—Subject to paragraphs (2) 

2 and (3), if, at any time after commercial production 

3 under a lease is achieved, production ceases for any 

4 reason, the lease shall remain in full force and effect 

5 for a period of not more than an aggregate number 

6 of 10 years beginning on the date production ceases, 

7 if, during the period in which production is ceased, 

8 the lessee pays royalties in advance at the monthly 

9 average rate at which the royalty was paid during 

10 the period of production. 

11 ‘‘(2) REDUCTION.—The amount of any produc12 tion royalty paid for any year shall be reduced (but 

13 not below 0) by the amount of any advanced royal14 ties paid under the lease to the extent that the ad15 vance royalties have not been used to reduce produc16 tion royalties for a prior year. 

17 ‘‘(3) EXCEPTIONS.—Paragraph (1) shall not 

18 apply if the cessation in production is required or 

19 otherwise caused by— 

20 ‘‘(A) the Secretary; 

21 ‘‘(B) the Secretary of the Air Force; 

22 ‘‘(C) the Secretary of the Army; 

23 ‘‘(D) the Secretary of the Navy; 

24 ‘‘(E) a State or a political subdivision of a 

25 State; or 
189 

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1 ‘‘(F) a force majeure.’’. 

2 SEC. 251. LEASING AND PERMITTING ON FEDERAL LAND 

3 WITHDRAWN FOR MILITARY PURPOSES. 

4 (a) IN GENERAL.—Not later than 2 years after the 

5 date of enactment of this Act, the Secretary of the Interior 

6 and the Secretary of Defense, in consultation with the Sec7 retary of the Air Force, the Secretary of the Army, the 

8 Secretary of the Navy, interested States, political subdivi9 sions of States, and representatives of the geothermal in10 dustry, and other interested persons, shall submit to the 

11 appropriate committees of Congress a joint report on leas12 ing and permitting activities for geothermal energy on 

13 Federal land withdrawn for military purposes. 

14 (b) REQUIREMENTS.—The report required under 

15 subsection (a) shall include— 

16 (1) a description of the military geothermal pro17 gram, including a description of— 

18 (A) any differences between the military 

19 geothermal program and the nonmilitary geo20 thermal program, including required security 

21 procedures and operational considerations; and 

22 (B) the reasons the differences described 

23 in subparagraph (A) are significant; 

24 (2) with respect to the military geothermal pro25 gram, a description of— 
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1 (A) revenues or energy provided to the De2 partment of Defense and facilities of the De3 partment Defense; and 

4 (B) royalty structures, as applicable; 

5 (3) any revenue sharing with States and polit6 ical subdivisions of States and other benefits from— 

7 (A) the implementation of the Geothermal 

8 Steam Act of 1970 (30 U.S.C 1001 et seq.) and 

9 other applicable Federal law by the Secretary of 

10 the Interior; and 

11 (B) the administration of geothermal leas12 ing under section 2689 of title 10, United 

13 States Code, by the Secretary of Defense; 

14 (4) if appropriate— 

15 (A) a description of the current methods 

16 and procedures used to ensure interagency co17 ordination, as needed, in developing renewable 

18 energy sources on Federal land withdrawn for 

19 military purposes; and 

20 (B) an identification of any new proce21 dures that would improve interagency coordina22 tion to ensure efficient processing and adminis23 tration of leases or contracts for geothermal en24 ergy on Federal land withdrawn for military 
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1 purposes, consistent with the defense purposes 

2 of the withdrawals; and 

3 (5) recommendations for any legislative or ad4 ministrative actions that would increase geothermal 

5 production, including— 

6 (A) a common royalty structure; 

7 (B) leasing procedures; and 

8 (C) other changes that— 

9 (i) increase production; 

10 (ii) offset military operation costs; or 

11 (iii) enhance the ability of Federal 

12 agencies to develop geothermal resources. 

13 (c) EFFECT.—Nothing in this section affects the 

14 legal status of geothermal leasing and development con15 ducted by the Department of the Interior and the Depart16 ment of Defense. 

17 SEC. 252. TECHNICAL AMENDMENTS. 

18 (a) The Geothermal Steam Act of 1970 (30 U.S.C. 

19 1001 et seq.) is amended by striking ‘‘geothermal steam 

20 and associated geothermal resources’’ each place it ap21 pears and inserting ‘‘geothermal resources’’. 

22 (b) The first section of the Geothermal Steam Act 

23 of 1970 (30 U.S.C. 1001 note) is amended by striking 

24 ‘‘That this’’ and inserting the following: 
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1 ‘‘SECTION 1. SHORT TITLE. 

2 ‘‘This’’. 

3 (c) Section 2 of the Geothermal Steam Act of 1970 

4 (30 U.S.C. 1001) is amended— 

5 (1) by striking ‘‘SEC. 2. As’’ and inserting the 

6 following: 

7 ‘‘SEC. 2. DEFINITIONS. 

8 ‘‘As’’; and 

9 (2) by striking subsection (e) and inserting the 

10 following: 

11 ‘‘(e) ‘direct use’ means use of geothermal re12 sources for commercial, residential, agricultural, 

13 public facilities, or other energy needs other than the 

14 commercial production of electricity; and’’. 

15 (d) Section 3 of the Geothermal Steam Act of 1970 

16 (30 U.S.C. 1002) is amended by striking ‘‘SEC. 3. Sub17 ject’’ and inserting the following: 

18 ‘‘SEC. 3 . LANDS SUBJECT TO GEOTHERMAL LEASING. 

19 ‘‘Subject’’. 

20 (e) Section 5 of the Geothermal Steam Act of 1970 

21 (30 U.S.C. 1004) is amended by striking ‘‘SEC. 5. Geo22 thermal’’ and inserting the following: 

23 ‘‘SEC. 5. RENTS AND ROYALTIES. 

24 ‘‘Geothermal’’. 
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1 (f) Section 6 of the Geothermal Steam Act of 1970 

2 (30 U.S.C. 1005) is amended by striking ‘‘SEC. 6. (a) 

3 The’’ and inserting the following: 

4 ‘‘SEC. 6. DURATION OF LEASES. 

5 ‘‘(a) The’’. 

6 (g) Section 7 of the Geothermal Steam Act of 1970 

7 (30 U.S.C. 1006) is amended by striking ‘‘SEC. 7. A geo8 thermal’’ and inserting the following: 

9 ‘‘SEC. 7. ACREAGE OF GEOTHERMAL LEASE. 

10 ‘‘A geothermal’’. 

11 (h) Section 8 of the Geothermal Steam Act of 1970 

12 (30 U.S.C. 1007) is amended by striking ‘‘SEC. 8. (a) 

13 The’’ and inserting the following: 

14 ‘‘SEC. 8. READJUSTMENT OF LEASE TERMS AND CONDI15 TIONS. 

16 ‘‘(a) The’’. 

17 (i) Section 9 of the Geothermal Steam Act of 1970 

18 (30 U.S.C. 1008) is amended by striking ‘‘SEC. 9. If’’ and 

19 inserting the following: 

20 ‘‘SEC. 9. BYPRODUCTS. 

21 ‘‘If’’. 

22 (j) Section 10 of the Geothermal Steam Act of 1970 

23 (30 U.S.C. 1009) is amended by striking ‘‘SEC. 10. The’’ 

24 and inserting the following: 
194 

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1 ‘‘SEC. 10. RELINQUISHMENT OF GEOTHERMAL RIGHTS. 

2 ‘‘The’’. 

3 (k) Section 11 of the Geothermal Steam Act of 1970 

4 (30 U.S.C. 1010) is amended by striking ‘‘SEC. 11. The’’ 

5 and inserting the following: 

6 ‘‘SEC. 11. SUSPENSION OF OPERATIONS AND PRODUCTION. 

7 ‘‘The’’. 

8 (l) Section 12 of the Geothermal Steam Act of 1970 

9 (30 U.S.C. 1011) is amended by striking ‘‘SEC. 12. 

10 Leases’’ and inserting the following: 

11 ‘‘SEC. 12. TERMINATION OF LEASES. 

12 ‘‘Leases’’. 

13 (m) Section 13 of the Geothermal Steam Act of 1970 

14 (30 U.S.C. 1012) is amended by striking ‘‘SEC. 13. The’’ 

15 and inserting the following: 

16 ‘‘SEC. 13. WAIVER, SUSPENSION, OR REDUCTION OF RENT17 AL OR ROYALTY. 

18 ‘‘The’’. 

19 (n) Section 14 of the Geothermal Steam Act of 1970 

20 (30 U.S.C. 1013) is amended by striking ‘‘SEC. 14. Sub21 ject’’ and inserting the following: 

22 ‘‘SEC. 14. SURFACE LAND USE. 

23 ‘‘Subject’’. 

24 (o) Section 15 of the Geothermal Steam Act of 1970 

25 (30 U.S.C. 1014) is amended by striking ‘‘SEC. 15. (a) 

26 Geothermal’’ and inserting the following: 
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1 ‘‘SEC. 15. LANDS SUBJECT TO GEOTHERMAL LEASING. 

2 ‘‘(a) Geothermal’’. 

3 (p) Section 16 of the Geothermal Steam Act of 1970 

4 (30 U.S.C. 1015) is amended by striking ‘‘SEC. 16. 

5 Leases’’ and inserting the following: 

6 ‘‘SEC. 16. REQUIREMENT FOR LESSEES. 

7 ‘‘Leases’’. 

8 (q) Section 17 of the Geothermal Steam Act of 1970 

9 (30 U.S.C. 1016) is amended by striking ‘‘SEC. 17. Ad10 ministration’’ and inserting the following: 

11 ‘‘SEC. 17. ADMINISTRATION. 

12 ‘‘Administration’’. 

13 (r) Section 19 of the Geothermal Steam Act of 1970 

14 (30 U.S.C. 1018) is amended by striking ‘‘SEC. 19. Upon’’ 

15 and inserting the following: 

16 ‘‘SEC. 19. DATA FROM FEDERAL AGENCIES. 

17 ‘‘Upon’’. 

18 (s) Section 20 of the Geothermal Steam Act of 1970 

19 (30 U.S.C. 1019) is amended by striking ‘‘SEC. 20. Sub20 ject’’ and inserting the following: 

21 ‘‘SEC. 20. DISPOSITION OF AMOUNTS RECEIVED FROM 

22 SALES, BONUSES, ROYALTIES, AND RENTALS. 

23 ‘‘Subject’’. 

24 (t) Section 21 of the Geothermal Steam Act of 1970 

25 (30 U.S.C. 1020) is amended by striking ‘‘SEC. 21.’’ and 
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1 all that follows through ‘‘(b) Geothermal’’ and inserting 

2 the following: 

3 ‘‘SEC. 21. PUBLICATION IN FEDERAL REGISTER; RESERVA4 TION OF MINERAL RIGHTS. 

5 ‘‘Geothermal’’. 

6 (u) Section 22 of the Geothermal Steam Act of 1970 

7 (30 U.S.C. 1021) is amended by striking ‘‘SEC. 22. Noth8 ing’’ and inserting the following: 

9 ‘‘SEC. 22. FEDERAL EXEMPTION FROM STATE WATER LAWS. 

10 ‘‘Nothing’’. 

11 (v) Section 23 of the Geothermal Steam Act of 1970 

12 (30 U.S.C. 1022) is amended by striking ‘‘SEC. 23. (a) 

13 All’’ and inserting the following: 

14 ‘‘SEC. 23. PREVENTION OF WASTE; EXCLUSIVITY. 

15 ‘‘(a) All’’. 

16 (w) Section 24 of the Geothermal Steam Act of 1970 

17 (30 U.S.C. 1023) is amended by striking ‘‘SEC. 24. The’’ 

18 and inserting the following: 

19 ‘‘SEC. 24. RULES AND REGULATIONS. 

20 ‘‘The’’. 

21 (x) Section 25 of the Geothermal Steam Act of 1970 

22 (30 U.S.C. 1024) is amended by striking ‘‘SEC. 25. As’’ 

23 and inserting the following: 
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1 ‘‘SEC. 25. INCLUSION OF GEOTHERMAL LEASING UNDER 

2 CERTAIN OTHER LAWS. 

3 ‘‘As’’. 

4 (y) Section 26 of the Geothermal Steam Act of 1970 

5 is amended by striking ‘‘SEC. 26. The’’ and inserting the 

6 following: 

7 ‘‘SEC. 26. AMENDMENT. 

8 ‘‘The’’. 

9 (z) Section 27 of the Geothermal Steam Act of 1970 

10 (30 U.S.C. 1025) is amended by striking ‘‘SEC. 27. The’’ 

11 and inserting the following: 

12 ‘‘SEC. 27. FEDERAL RESERVATION OF CERTAIN MINERAL 

13 RIGHTS. 

14 ‘‘The’’. 

15 (aa) Section 28 of the Geothermal Steam Act of 1970 

16 (30 U.S.C. 1026) is amended by striking ‘‘SEC. 28. (a)(1) 

17 The’’ and inserting the following: 

18 ‘‘SEC. 28. SIGNIFICANT THERMAL FEATURES. 

19 ‘‘(a)(1) The’’. 

20 (bb) Section 29 of the Geothermal Steam Act of 1970 

21 (30 U.S.C. 1027) is amended by striking ‘‘SEC. 29. The’’ 

22 and inserting the following: 

23 ‘‘SEC. 29. LAND SUBJECT TO PROHIBITION ON LEASING. 

24 ‘‘The’’. 
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1 Subtitle E—Hydroelectric 

2 SEC. 261. ALTERNATIVE CONDITIONS AND FISHWAYS. 

3 (a) FEDERAL RESERVATIONS.—Section 4(e) of the 

4 Federal Power Act (16 U.S.C. 797(e)) is amended by in5 serting after ‘‘adequate protection and utilization of such 

6 reservation.’’ at the end of the first proviso the following: 

7 ‘‘The license applicant and any party to the proceeding 

8 shall be entitled to a determination on the record, after 

9 opportunity for an agency trial-type hearing of no more 

10 than 90 days, on any disputed issues of material fact with 

11 respect to such conditions. All disputed issues of material 

12 fact raised by any party shall be determined in a single 

13 trial-type hearing to be conducted within a time frame es14 tablished by the Commission for each license proceeding. 

15 Within 90 days of the date of enactment of this Act, the 

16 Secretaries of the Interior, Commerce, and Agriculture 

17 shall establish jointly, by rule, the procedures for such ex18 pedited trial-type hearing, including the opportunity to un19 dertake discovery and cross-examine witnesses, in con20 sultation with the Federal Energy Regulatory Commis21 sion.’’. 

22 (b) FISHWAYS.—Section 18 of the Federal Power Act 

23 (16 U.S.C. 811) is amended by inserting after ‘‘and such 

24 fishways as may be prescribed by the Secretary of Com25 merce.’’ the following: ‘‘The license applicant and any 
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1 party to the proceeding shall be entitled to a determination 

2 on the record, after opportunity for an agency trial-type 

3 hearing of no more than 90 days, on any disputed issues 

4 of material fact with respect to such fishways. All disputed 

5 issues of material fact raised by any party shall be deter6 mined in a single trial-type hearing to be conducted within 

7 a time frame established by the Commission for each li8 cense proceeding. Within 90 days of the date of enactment 

9 of this Act, the Secretaries of the Interior, Commerce, and 

10 Agriculture shall establish jointly, by rule, the procedures 

11 for such expedited trial-type hearing, including the oppor12 tunity to undertake discovery and cross-examine wit13 nesses, in consultation with the Federal Energy Regu14 latory Commission.’’. 

15 (c) ALTERNATIVE CONDITIONS AND PRESCRIP16 TIONS.—Part I of the Federal Power Act (16 U.S.C. 791a 

17 et seq.) is amended by adding the following new section 

18 at the end thereof: 

19 ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 

20 ‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 

21 person applies for a license for any project works within 

22 any reservation of the United States, and the Secretary 

23 of the department under whose supervision such reserva24 tion falls (referred to in this subsection as the ‘Secretary’) 

25 deems a condition to such license to be necessary under 
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1 the first proviso of section 4(e), the license applicant or 

2 any other party to the license proceeding may propose an 

3 alternative condition. 

4 ‘‘(2) Notwithstanding the first proviso of section 4(e), 

5 the Secretary shall accept the proposed alternative condi6 tion referred to in paragraph (1), and the Commission 

7 shall include in the license such alternative condition, if 

8 the Secretary determines, based on substantial evidence 

9 provided by the license applicant, any other party to the 

10 proceeding, or otherwise available to the Secretary, that 

11 such alternative condition— 

12 ‘‘(A) provides for the adequate protection and 

13 utilization of the reservation; and 

14 ‘‘(B) the Secretary concurs with the license ap15 plicant’s judgment that the alternative condition will 

16 either— 

17 ‘‘(i) cost significantly less to implement; or 

18 ‘‘(ii) result in improved operation of the 

19 project works for electricity production, as com20 pared to the condition initially deemed nec21 essary by the Secretary. 

22 ‘‘(3) The Secretary concerned shall submit into the 

23 public record of the Commission proceeding with any con24 dition under section 4(e) or alternative condition it accepts 

25 under this section, a written statement explaining the 
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1 basis for such condition, and reason for not accepting any 

2 alternative condition under this section. The written state3 ment must demonstrate that the Secretary gave equal con4 sideration to the effects of the condition adopted and alter5 natives not accepted on energy supply, distribution, cost, 

6 and use; flood control; navigation; water supply; and air 

7 quality (in addition to the preservation of other aspects 

8 of environmental quality); based on such information as 

9 may be available to the Secretary, including information 

10 voluntarily provided in a timely manner by the applicant 

11 and others. The Secretary shall also submit, together with 

12 the aforementioned written statement, all studies, data, 

13 and other factual information available to the Secretary 

14 and relevant to the Secretary’s decision. 

15 ‘‘(4) If the Secretary does not accept an applicant’s 

16 alternative condition under this section, and the Commis17 sion finds that the Secretary’s condition would be incon18 sistent with the purposes of this part, or other applicable 

19 law, the Commission may refer the dispute to the Commis20 sion’s Dispute Resolution Service. The Dispute Resolution 

21 Service shall consult with the Secretary and the Commis22 sion and issue a non-binding advisory within 90 days. The 

23 Secretary may accept the Dispute Resolution Service advi24 sory unless the Secretary finds that the recommendation 

25 will not adequately protect the reservation. The Secretary 
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1 shall submit the advisory and the Secretary’s final written 

2 determination into the record of the Commission’s pro3 ceeding. 

4 ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 

5 the Secretary of the Interior or the Secretary of Commerce 

6 prescribes a fishway under section 18, the license appli7 cant or any other party to the license proceeding may pro8 pose an alternative to such prescription to construct, 

9 maintain, or operate a fishway. 

10 ‘‘(2) Notwithstanding section 18, the Secretary of the 

11 Interior or the Secretary of Commerce, as appropriate, 

12 shall accept and prescribe, and the Commission shall re13 quire, the proposed alternative referred to in paragraph 

14 (1), if the Secretary of the appropriate department deter15 mines, based on substantial evidence provided by the li16 cense applicant, any other party to the proceeding, or oth17 erwise available to the Secretary, that such alternative— 

18 ‘‘(A) will be no less protective than the fishway 

19 initially prescribed by the Secretary; and 

20 ‘‘(B) the Secretary concurs with the license ap21 plicant’s judgment that the alternative prescription 

22 will either— 

23 ‘‘(i) cost significantly less to implement; or 

24 ‘‘(ii) result in improved operation of the 

25 project works for electricity production, as com-
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1 pared to the fishway initially deemed necessary 

2 by the Secretary. 

3 ‘‘(3) The Secretary concerned shall submit into the 

4 public record of the Commission proceeding with any pre5 scription under section 18 or alternative prescription it ac6 cepts under this section, a written statement explaining 

7 the basis for such prescription, and reason for not accept8 ing any alternative prescription under this section. The 

9 written statement must demonstrate that the Secretary 

10 gave equal consideration to the effects of the prescription 

11 adopted and alternatives not accepted on energy supply, 

12 distribution, cost, and use; flood control; navigation; water 

13 supply; and air quality (in addition to the preservation of 

14 other aspects of environmental quality); based on such in15 formation as may be available to the Secretary, including 

16 information voluntarily provided in a timely manner by the 

17 applicant and others. The Secretary shall also submit, to18 gether with the aforementioned written statement, all 

19 studies, data, and other factual information available to 

20 the Secretary and relevant to the Secretary’s decision. 

21 ‘‘(4) If the Secretary concerned does not accept an 

22 applicant’s alternative prescription under this section, and 

23 the Commission finds that the Secretary’s prescription 

24 would be inconsistent with the purposes of this part, or 

25 other applicable law, the Commission may refer the dis-
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1 pute to the Commission’s Dispute Resolution Service. The 

2 Dispute Resolution Service shall consult with the Sec3 retary and the Commission and issue a non-binding advi4 sory within 90 days. The Secretary may accept the Dis5 pute Resolution Service advisory unless the Secretary 

6 finds that the recommendation will not adequately protect 

7 the fish resources. The Secretary shall submit the advisory 

8 and the Secretary’s final written determination into the 

9 record of the Commission’s proceeding.’’. 

10 SEC. 262. ALASKA STATE JURISDICTION OVER SMALL HY11 DROELECTRIC PROJECTS. 

12 Section 32 of the Federal Power Act (16 U.S.C. 

13 823c) is amended— 

14 (1) in subsection (a)(3)(C), by inserting ‘‘except 

15 as provided in subsection (j),’’ before ‘‘conditions’’; 

16 and 

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

18 ‘‘(j) FISH AND WILDLIFE.—If the State of Alaska 

19 determines that a recommendation under subsection 

20 (a)(3)(C) is inconsistent with paragraphs (1) and (2) of 

21 subsection (a), the State of Alaska may decline to adopt 

22 all or part of the recommendations in accordance with the 

23 procedures established under section 10(j)(2).’’. 
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1 SEC. 263. FLINT CREEK HYDROELECTRIC PROJECT. 

2 (a) EXTENSION OF TIME.—Notwithstanding the time 

3 period specified in section 5 of the Federal Power Act (16 

4 U.S.C. 798) that would otherwise apply to the Federal En5 ergy Regulatory Commission (referred to in this section 

6 as the ‘‘Commission’’) project numbered 12107, the Com7 mission shall— 

8 (1) if the preliminary permit is in effect on the 

9 date of enactment of this Act, extend the prelimi10 nary permit for a period of 3 years beginning on the 

11 date on which the preliminary permit expires; or 

12 (2) if the preliminary permit expired before the 

13 date of enactment of this Act, on request of the per14 mittee, reinstate the preliminary permit for an addi15 tional 3-year period beginning on the date of enact16 ment of this Act. 

17 (b) LIMITATION ON CERTAIN FEES.—Notwith18 standing section 10(e)(1) of the Federal Power Act (16 

19 U.S.C. 803(e)(1)) or any other provision of Federal law 

20 providing for the payment to the United States of charges 

21 for the use of Federal land for the purposes of operating 

22 and maintaining a hydroelectric development licensed by 

23 the Commission, any political subdivision of the State of 

24 Montana that holds a Commission license for the Commis25 sion project numbered 12107 in Granite and Deer Lodge 

26 Counties, Montana, shall be required to pay to the United 
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1 States for the use of that land for each year during which 

2 the political subdivision continues to hold the license for 

3 the project, the lesser of— 

4 (1) $25,000; or 

5 (2) such annual charge as the Commission or 

6 any other department or agency of the Federal Gov7 ernment may assess. 

8 TITLE III—OIL AND GAS 

9 Subtitle A—Petroleum Reserve and 

10 Home Heating Oil 

11 SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA12 TEGIC PETROLEUM RESERVE AND OTHER 

13 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. 6212 et seq.) is 

17 amended— 

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

19 and inserting the following: 

20 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

22 to the Secretary such sums as are necessary to carry out 

23 this part and part D, to remain available until expended.’’; 

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

25 and 

26 (3) by striking part E (42 U.S.C. 6251). 
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1 (b) AMENDMENT TO TITLE II OF THE ENERGY POL2 ICY AND CONSERVATION ACT.—Title II of the Energy 

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

4 amended— 

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

6 6283) the following: 

7 ‘‘PART C—SUMMER FILL AND FUEL BUDGETING

8 PROGRAMS’’; 

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

10 6283(e)); and 

11 (3) by striking part D (42 U.S.C. 6285). 

12 (c) TECHNICAL AMENDMENTS.—The table of con13 tents for the Energy Policy and Conservation Act is 

14 amended— 

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

16 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.’’; 

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

18 title II to read as follows: 

‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS

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

19 and 
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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 striking ‘‘by more’’ and all that follows through ‘‘mid7 October through March’’ and inserting ‘‘by more than 60 

8 percent over its 5-year rolling average for the months of 

9 mid-October through March (considered as a heating sea10 son average)’’. 

11 (e) FILL STRATEGIC PETROLEUM RESERVE TO CA12 PACITY.—The Secretary shall, as expeditiously as prac13 ticable, without incurring excessive cost or appreciably af14 fecting the price of gasoline or heating oil to consumers, 

15 acquire petroleum in quantities sufficient to fill the Stra16 tegic Petroleum Reserve to the 1,000,000,000-barrel ca17 pacity authorized under section 154(a) of the Energy Pol18 icy and Conservation Act (42 U.S.C. 6234(a)), in accord19 ance with the sections 159 and 160 of that Act (42 U.S.C. 

20 6239, 6240). 

21 SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE. 

22 Section 713 of the Energy Act of 2000 (Public Law 

23 106–469; 42 U.S.C. 6201 note) is amended by striking 

24 ‘‘4’’ and inserting ‘‘9’’. 
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1 Subtitle B—Production Incentives 

2 SEC. 311. DEFINITION OF SECRETARY. 

3 In this subtitle, the term ‘‘Secretary’’ means the Sec4 retary of the Interior. 

5 SEC. 312. PROGRAM ON OIL AND GAS ROYALTIES IN-KIND. 

6 (a) APPLICABILITY OF SECTION.—Notwithstanding 

7 any other provision of law, this section applies to all roy8 alty in-kind accepted by the Secretary on or after the date 

9 of enactment of this Act under any Federal oil or gas lease 

10 or permit under— 

11 (1) section 36 of the Mineral Leasing Act (30 

12 U.S.C. 192); 

13 (2) section 27 of the Outer Continental Shelf 

14 Lands Act (43 U.S.C. 1353); or 

15 (3) any other Federal law governing leasing of 

16 Federal land for oil and gas development. 

17 (b) TERMS AND CONDITIONS.—All royalty accruing 

18 to the United States shall, on the demand of the Sec19 retary, be paid in oil or gas. If the Secretary makes such 

20 a demand, the following provisions apply to the payment: 

21 (1) SATISFACTION OF ROYALTY OBLIGATION.— 

22 Delivery by, or on behalf of, the lessee of the royalty 

23 amount and quality due under the lease satisfies 

24 royalty obligation of the lessee for the amount deliv25 ered, except that transportation and processing re-
210 

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1 imbursements paid to, or deductions claimed by, the 

2 lessee shall be subject to review and audit. 

3 (2) MARKETABLE CONDITION.— 

4 (A) DEFINITION OF MARKETABLE CONDI5 TION.—In this paragraph, the term ‘‘in market6 able condition’’ means sufficiently free from im7 purities and otherwise in a condition that the 

8 royalty production will be accepted by a pur9 chaser under a sales contract typical of the field 

10 or area in which the royalty production was 

11 produced. 

12 (B) REQUIREMENT.—Royalty production 

13 shall be placed in marketable condition by the 

14 lessee at no cost to the United States. 

15 (3) DISPOSITION BY THE SECRETARY.—The 

16 Secretary may— 

17 (A) sell or otherwise dispose of any royalty 

18 production taken in-kind (other than oil or gas 

19 transferred under section 27(a)(3) of the Outer 

20 Continental Shelf Lands Act (43 U.S.C. 

21 1353(a)(3)) for not less than the market price; 

22 and 

23 (B) transport or process (or both) any roy24 alty production taken in-kind. 
211 

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1 (4) RETENTION BY THE SECRETARY.—The Sec2 retary may, notwithstanding section 3302 of title 31, 

3 United States Code, retain and use a portion of the 

4 revenues from the sale of oil and gas taken in-kind 

5 that otherwise would be deposited to miscellaneous 

6 receipts, without regard to fiscal year limitation, or 

7 may use oil or gas received as royalty taken in-kind 

8 (referred to in this paragraph as ‘‘royalty produc9 tion’’) to pay the cost of— 

10 (A) transporting the royalty production; 

11 (B) processing the royalty production; 

12 (C) disposing of the royalty production; or 

13 (D) any combination of transporting, proc14 essing, and disposing of the royalty production. 

15 (5) LIMITATION.— 

16 (A) IN GENERAL.—Except as provided in 

17 subparagraph (B), the Secretary may not use 

18 revenues from the sale of oil and gas taken in19 kind to pay for personnel, travel, or other ad20 ministrative costs of the Federal Government. 

21 (B) EXCEPTION.—Notwithstanding sub22 paragraph (A), the Secretary may use a portion 

23 of the revenues from royalty in-kind sales, with24 out fiscal year limitation, to pay salaries and 
212 

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1 other administrative costs directly related to the 

2 royalty in-kind program. 

3 (c) REIMBURSEMENT OF COST.—If a lessee, pursu4 ant to an agreement with the United States or as provided 

5 in the lease, processes the royalty gas or delivers the roy6 alty oil or gas at a point not on or adjacent to the lease 

7 area, the Secretary shall— 

8 (1) reimburse the lessee for the reasonable costs 

9 of transportation (not including gathering) from the 

10 lease to the point of delivery or for processing costs; 

11 or 

12 (2) allow the lessee to deduct the transportation 

13 or processing costs in reporting and paying royalties 

14 in-value for other Federal oil and gas leases. 

15 (d) BENEFIT TO THE UNITED STATES REQUIRED.— 

16 The Secretary may receive oil or gas royalties in-kind only 

17 if the Secretary determines that receiving royalties in-kind 

18 provides benefits to the United States that are greater 

19 than or equal to the benefits that are likely to have been 

20 received had royalties been taken in-value. 

21 (e) REPORTS.— 

22 (1) IN GENERAL.—Not later than September 

23 30, 2006, the Secretary shall submit to Congress a 

24 report that addresses— 
213 

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1 (A) actions taken to develop businesses 

2 processes and automated systems to fully sup3 port the royalty-in-kind capability to be used in 

4 tandem with the royalty-in-value approach in 

5 managing Federal oil and gas revenue; and 

6 (B) future royalty-in-kind businesses oper7 ation plans and objectives. 

8 (2) REPORTS ON OIL OR GAS ROYALTIES TAKEN

9 IN-KIND.—For each of fiscal years 2006 through 

10 2015 in which the United States takes oil or gas 

11 royalties in-kind from production in any State or 

12 from the outer Continental Shelf, excluding royalties 

13 taken in-kind and sold to refineries under subsection 

14 (h), the Secretary shall submit to Congress a report 

15 that describes— 

16 (A) the 1 or more methodologies used by 

17 the Secretary to determine compliance with sub18 section (d), including the performance standard 

19 for comparing amounts received by the United 

20 States derived from royalties in-kind to 

21 amounts likely to have been received had royal22 ties been taken in-value; 

23 (B) an explanation of the evaluation that 

24 led the Secretary to take royalties in-kind from 
214 

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1 a lease or group of leases, including the ex2 pected revenue effect of taking royalties in-kind; 

3 (C) actual amounts received by the United 

4 States derived from taking royalties in-kind and 

5 costs and savings incurred by the United States 

6 associated with taking royalties in-kind, includ7 ing administrative savings and any new or in8 creased administrative costs; and 

9 (D) an evaluation of other relevant public 

10 benefits or detriments associated with taking 

11 royalties in-kind. 

12 (f) DEDUCTION OF EXPENSES.— 

13 (1) IN GENERAL.—Before making payments 

14 under section 35 of the Mineral Leasing Act (30 

15 U.S.C. 191) or section 8(g) of the Outer Continental 

16 Shelf Lands Act (43 U.S.C. 1337(g)) of revenues 

17 derived from the sale of royalty production taken in18 kind from a lease, the Secretary shall deduct 

19 amounts paid or deducted under subsections (b)(4) 

20 and (c) and deposit the amount of the deductions in 

21 the miscellaneous receipts of the Treasury. 

22 (2) ACCOUNTING FOR DEDUCTIONS.—If the 

23 Secretary allows the lessee to deduct transportation 

24 or processing costs under subsection (c), the Sec25 retary may not reduce any payments to recipients of 
215 

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1 revenues derived from any other Federal oil and gas 

2 lease as a consequence of that deduction. 

3 (g) CONSULTATION WITH STATES.—The Secretary— 

4 (1) shall consult with a State before conducting 

5 a royalty in-kind program under this subtitle within 

6 the State; 

7 (2) may delegate management of any portion of 

8 the Federal royalty in-kind program to the State ex9 cept as otherwise prohibited by Federal law; and 

10 (3) shall consult annually with any State from 

11 which Federal oil or gas royalty is being taken in12 kind to ensure, to the maximum extent practicable, 

13 that the royalty in-kind program provides revenues 

14 to the State greater than or equal to the revenues 

15 likely to have been received had royalties been taken 

16 in-value. 

17 (h) SMALL REFINERIES.— 

18 (1) PREFERENCE.—If the Secretary finds that 

19 sufficient supplies of crude oil are not available in 

20 the open market to refineries that do not have their 

21 own source of supply for crude oil, the Secretary 

22 may grant preference to those refineries in the sale 

23 of any royalty oil accruing or reserved to the United 

24 States under Federal oil and gas leases issued under 

25 any mineral leasing law, for processing or use in 
216 

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1 those refineries at private sale at not less than the 

2 market price. 

3 (2) PRORATION AMONG REFINERIES IN PRO4 DUCTION AREA.—In disposing of oil under this sub5 section, the Secretary may, at the discretion of the 

6 Secretary, prorate the oil among refineries described 

7 in paragraph (1) in the area in which the oil is pro8 duced. 

9 (i) DISPOSITION TO FEDERAL AGENCIES.— 

10 (1) ONSHORE ROYALTY.—Any royalty oil or gas 

11 taken by the Secretary in-kind from onshore oil and 

12 gas leases may be sold at not less than the market 

13 price to any Federal agency. 

14 (2) OFFSHORE ROYALTY.—Any royalty oil or 

15 gas taken in-kind from a Federal oil or gas lease on 

16 the outer Continental Shelf may be disposed of only 

17 under section 27 of the Outer Continental Shelf 

18 Lands Act (43 U.S.C. 1353). 

19 (j) FEDERAL LOW-INCOME ENERGY ASSISTANCE

20 PROGRAMS.— 

21 (1) PREFERENCE.—In disposing of royalty oil 

22 or gas taken in-kind under this section, the Sec23 retary may grant a preference to any person, includ24 ing any Federal or State agency, for the purpose of 
217 

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1 providing additional resources to any Federal low-in2 come energy assistance program. 

3 (2) REPORT.—Not later than 3 years after the 

4 date of enactment of this Act, the Secretary shall 

5 submit a report to Congress— 

6 (A) assessing the effectiveness of granting 

7 preferences specified in paragraph (1); and 

8 (B) providing a specific recommendation 

9 on the continuation of authority to grant pref10 erences. 

11 SEC. 313. MARGINAL PROPERTY PRODUCTION INCENTIVES. 

12 (a) DEFINITION OF MARGINAL PROPERTY.—Until 

13 such time as the Secretary issues regulations under sub14 section (e) that prescribe a different definition, in this sec15 tion, the term ‘‘marginal property’’ means an onshore 

16 unit, communitization agreement, or lease not within a 

17 unit or communitization agreement, that produces on av18 erage the combined equivalent of less than 15 barrels of 

19 oil per well per day or 90,000,000 British thermal units 

20 of gas per well per day calculated based on the average 

21 over the 3 most recent production months, including only 

22 wells that produce on more than half of the days during 

23 those 3 production months. 

24 (b) CONDITIONS FOR REDUCTION OF ROYALTY

25 RATE.—Until such time as the Secretary issues regula-
218 

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1 tions under subsection (e) that prescribe different stand2 ards or requirements, the Secretary shall reduce the roy3 alty rate on— 

4 (1) oil production from marginal properties as 

5 prescribed in subsection (c) if the spot price of West 

6 Texas Intermediate crude oil at Cushing, Oklahoma, 

7 is, on average, less than $15 per barrel (adjusted in 

8 accordance with the Consumer Price Index for all9 urban consumers, United States city average, as 

10 published by the Bureau of Labor Statistics) for 90 

11 consecutive trading days; and 

12 (2) gas production from marginal properties as 

13 prescribed in subsection (c) if the spot price of nat14 ural gas delivered at Henry Hub, Louisiana, is, on 

15 average, less than $2.00 per million British thermal 

16 units (adjusted in accordance with the Consumer 

17 Price Index for all-urban consumers, United States 

18 city average, as published by the Bureau of Labor 

19 Statistics) for 90 consecutive trading days. 

20 (c) REDUCED ROYALTY RATE.— 

21 (1) IN GENERAL.—When a marginal property 

22 meets the conditions specified in subsection (b), the 

23 royalty rate shall be the lesser of— 

24 (A) 5 percent; or 
219 

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1 (B) the applicable rate under any other 

2 statutory or regulatory royalty relief provision 

3 that applies to the affected production. 

4 (2) PERIOD OF EFFECTIVENESS.—The reduced 

5 royalty rate under this subsection shall be effective 

6 beginning on the first day of the production month 

7 following the date on which the applicable condition 

8 specified in subsection (b) is met. 

9 (d) TERMINATION OF REDUCED ROYALTY RATE.— 

10 A royalty rate prescribed in subsection (c)(1)(A) shall ter11 minate— 

12 (1) with respect to oil production from a mar13 ginal property, on the first day of the production 

14 month following the date on which— 

15 (A) the spot price of West Texas Inter16 mediate crude oil at Cushing, Oklahoma, on av17 erage, exceeds $15 per barrel (adjusted in ac18 cordance with the Consumer Price Index for all19 urban consumers, United States city average, 

20 as published by the Bureau of Labor Statistics) 

21 for 90 consecutive trading days; or 

22 (B) the property no longer qualifies as a 

23 marginal property; and 
220 

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1 (2) with respect to gas production from a mar2 ginal property, on the first day of the production 

3 month following the date on which— 

4 (A) the spot price of natural gas delivered 

5 at Henry Hub, Louisiana, on average, exceeds 

6 $2.00 per million British thermal units (ad7 justed in accordance with the Consumer Price 

8 Index for all-urban consumers, United States 

9 city average, as published by the Bureau of 

10 Labor Statistics) for 90 consecutive trading 

11 days; or 

12 (B) the property no longer qualifies as a 

13 marginal property. 

14 (e) REGULATIONS PRESCRIBING DIFFERENT RE15 LIEF.— 

16 (1) DISCRETIONARY REGULATIONS.—The Sec17 retary may by regulation prescribe different param18 eters, standards, and requirements for, and a dif19 ferent degree or extent of, royalty relief for marginal 

20 properties in lieu of those prescribed in subsections 

21 (a) through (d). 

22 (2) ROYALTY RELIEF FOR OFFSHORE WELLS.— 

23 With respect to royalty relief for oil or gas produced 

24 from wells located on the outer Continental Shelf, 

25 the Secretary shall use authority available to the 
221 

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1 Secretary as of the day before the date of enactment 

2 of this Act— 

3 (A) to accept and consider petitions from 

4 persons seeking, and providing justification for, 

5 royalty relief for 1 or more of those wells; and 

6 (B) not later than 90 days after the date 

7 of receipt of a petition, on a case-by-case 

8 basis— 

9 (i) approve the petition and provide 

10 royalty relief or a royalty reduction for oil 

11 or gas produced from the wells covered by 

12 the petition; or 

13 (ii) disapprove the petition. 

14 (3) CONSIDERATIONS.—In issuing regulations 

15 under this subsection, the Secretary may consider— 

16 (A) oil and gas prices and market trends; 

17 (B) production costs; 

18 (C) abandonment costs; 

19 (D) Federal and State tax provisions and 

20 the effects of those provisions on production ec21 onomics; 

22 (E) other royalty relief programs; 

23 (F) regional differences in average well24 head prices; 

25 (G) national energy security issues; and 
222 

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1 (H) other relevant matters, as determined 

2 by the Secretary. 

3 (f) SAVINGS PROVISION.—Nothing in this section 

4 prevents a lessee from receiving royalty relief or a royalty 

5 reduction pursuant to any other law (including a regula6 tion) that provides more relief than the amounts provided 

7 by this section. 

8 SEC. 314. INCENTIVES FOR NATURAL GAS PRODUCTION 

9 FROM DEEP WELLS IN THE SHALLOW WA10 TERS OF THE GULF OF MEXICO. 

11 (a) DEFINITIONS.—In this section: 

12 (1) LEASE ISSUED IN SHALLOW WATERS.—The 

13 term ‘‘lease issued in shallow waters’’ means— 

14 (A) a lease entirely in water less than 200 

15 meters deep; or 

16 (B) a lease— 

17 (i) partially in water less than 200 

18 meters deep; and 

19 (ii) to which no royalty relief provi20 sions in law or lease terms apply. 

21 (2) SIDETRACK.— 

22 (A) IN GENERAL.—The term ‘‘sidetrack’’ 

23 means a well resulting from drilling an addi24 tional hole to a new objective bottom-hole loca25 tion by leaving a previously drilled hole. 
223 

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1 (B) INCLUSION.—The term ‘‘sidetrack’’ in2 cludes— 

3 (i) drilling a well from a platform slot 

4 reclaimed from a previously drilled well; 

5 (ii) re-entering and deepening a pre6 viously drilled well; and 

7 (iii) a bypass from a sidetrack, includ8 ing drilling around material blocking a hole 

9 or drilling to straighten a crooked hole. 

10 (3) ULTRA DEEP WELL.—The term ‘‘ultra deep 

11 well’’ means a well drilled with a perforated interval, 

12 the top of which is at least 20,000 feet true vertical 

13 depth below the datum at mean sea level. 

14 (b) REGULATIONS.— 

15 (1) IN GENERAL.—Not later than 180 days 

16 after the date of enactment of this Act, in addition 

17 to any other regulations that may provide royalty in18 centives for natural gas produced from deep wells on 

19 oil and gas leases issued pursuant to, or regulated 

20 under, the Outer Continental Shelf Lands Act (43 

21 U.S.C. 1331 et seq.), the Secretary shall issue regu22 lations granting royalty relief suspension volumes of 

23 not less than 35,000,000,000 cubic feet with respect 

24 to the production of natural gas from ultra deep 

25 wells on leases issued in shallow waters located in 
224 

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1 the Gulf of Mexico wholly west of 87°, 30’’ West lon2 gitude that are issued before the date that is 180 

3 days after the date of enactment of this Act. 

4 (2) SUSPENSION VOLUMES.—The Secretary 

5 may grant suspension volumes of less than 

6 35,000,000,000 cubic feet in any case in which— 

7 (A) the ultra deep well is a sidetrack; or 

8 (B) the lease has previously produced from 

9 wells with a perforated interval the top of which 

10 is at least 15,000 feet true vertical depth below 

11 the datum at mean sea level. 

12 (c) LIMITATION.—The Secretary shall not grant roy13 alty incentives under this section if the average annual 

14 natural gas price on the New York Mercantile Exchange 

15 exceeds a threshold price specified, and adjusted for infla16 tion, by the Secretary. 

17 (d) APPLICABILITY.— 

18 (1) IN GENERAL.—Royalty incentives under 

19 this subsection apply only to natural gas production 

20 from ultra deep wells that are drilled after the date 

21 of enactment of this Act. 

22 (2) REVIEW AND SUSPENSION.—Not earlier 

23 than 10 years after the date of enactment of this 

24 Act, the Secretary may— 
225 

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1 (A) review the relief granted under this 

2 section; and 

3 (B) by regulation, modify or suspend the 

4 relief. 

5 SEC. 315. ROYALTY RELIEF FOR DEEP WATER PRODUC6 TION. 

7 (a) IN GENERAL.—Subject to subsections (b) and (c), 

8 for each tract located in water depths of greater than 400 

9 meters in the Western and Central Planning Area of the 

10 Gulf of Mexico (including the portion of the Eastern Plan11 ning Area of the Gulf of Mexico encompassing whole lease 

12 blocks lying west of 87 degrees, 30 minutes West lon13 gitude), any oil or gas lease sale under the Outer Conti14 nental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring 

15 during the 5-year period beginning on the date of enact16 ment of this Act shall use the bidding system authorized 

17 under section 8(a)(1)(H) of the Outer Continental Shelf 

18 Lands Act (43 U.S.C. 1337(a)(1)(H)). 

19 (b) SUSPENSION OF ROYALTIES.—The suspension of 

20 royalties under subsection (a) shall be established at a vol21 ume of not less than— 

22 (1) 5,000,000 barrels of oil equivalent for each 

23 lease in water depths of 400 meters or more but less 

24 than 800 meters; 
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1 (2) 9,000,000 barrels of oil equivalent for each 

2 lease in water depths of 800 meters or more but not 

3 greater than 1,600 meters; and 

4 (3) 12,000,000 barrels of oil equivalent for each 

5 lease in water depths greater than 1,600 meters. 

6 (c) LIMITATION.—The Secretary may place limita7 tions on royalty relief granted under this section based on 

8 market price. 

9 SEC. 316. ALASKA OFFSHORE ROYALTY SUSPENSION. 

10 Section 8(a)(3)(B) of the Outer Continental Shelf 

11 Lands Act (43 U.S.C. 1337(a)(3)(B)) is amended by in12 serting ‘‘and in the Planning Areas offshore Alaska,’’ after 

13 ‘‘West longitude,’’. 

14 SEC. 317. OIL AND GAS LEASING IN THE NATIONAL PETRO15 LEUM RESERVE IN ALASKA. 

16 (a) TRANSFER OF AUTHORITY.— 

17 (1) REDESIGNATION.—The Naval Petroleum 

18 Reserves Production Act of 1976 (42 U.S.C. 6501 

19 et seq.) is amended by redesignating section 107 (42 

20 U.S.C. 6507) as section 108. 

21 (2) TRANSFER.—The matter under the heading 

22 ‘‘EXPLORATION OF NATIONAL PETROLEUM RESERVE

23 IN ALASKA’’ under the heading ‘‘ENERGY AND MIN24 ERALS’’ of title I of Public Law 96–514 (42 U.S.C. 

25 6508) is— 
227 

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1 (A) transferred to the Naval Petroleum 

2 Reserves Production Act of 1976 (42 U.S.C. 

3 6501 et seq.); 

4 (B) redesignated as section 107 of that 

5 Act; and 

6 (C) moved so as to appear after section 

7 106 of that Act (42 U.S.C. 6506). 

8 (b) COMPETITIVE LEASING.—Section 107 of the 

9 Naval Petroleum Reserves Production Act of 1976 (as 

10 amended by subsection (a)(2)) is amended— 

11 (1) by striking the heading and all that follows 

12 through ‘‘Provided, That (1) activities’’ and insert13 ing the following: 

14 ‘‘SEC. 107. COMPETITIVE LEASING OF OIL AND GAS. 

15 ‘‘(a) IN GENERAL.—The Secretary shall conduct an 

16 expeditious program of competitive leasing of oil and gas 

17 in the Reserve in accordance with this Act. 

18 ‘‘(b) MITIGATION OF ADVERSE EFFECTS.— 

19 ‘‘(1) IN GENERAL.—Activities’’; 

20 (2) in subsection (b)(1) (as designated by para21 graph (1)), by striking ‘‘to mitigate’’ and inserting 

22 ‘‘to prevent to the extent practicable, and to miti23 gate,’’; 

24 (3) by striking ‘‘Alaska (the Reserve); (2) the’’ 

25 and inserting ‘‘Alaska. 
228 

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1 ‘‘(2) CERTAIN RESOURCES AND FACILITIES.— 

2 In carrying out the leasing program under this sec3 tion, the Secretary shall minimize, to the extent 

4 practicable, the impact to surface resources and con5 solidate facilities. 

6 ‘‘(c) LAND USE PLANNING; BLM WILDERNESS

7 STUDY.—The’’; 

8 (4) by striking ‘‘Reserve; (3) the’’ and inserting 

9 ‘‘Reserve. 

10 ‘‘(d) FIRST LEASE SALE.—The;’’; 

11 (5) by striking ‘‘4332); (4) the’’ and inserting 

12 ‘‘4321 et seq.). 

13 ‘‘(e) WITHDRAWALS.—The’’; 

14 (6) by striking ‘‘herein; (5) bidding’’ and insert15 ing ‘‘under this section. 

16 ‘‘(f) BIDDING SYSTEMS.—Bidding’’; 

17 (7) by striking ‘‘629); (6) lease’’ and inserting 

18 ‘‘629). 

19 ‘‘(g) GEOLOGICAL STRUCTURES.—Lease’’; 

20 (8) by striking ‘‘structures; (7) the’’ and insert21 ing ‘‘structures. 

22 ‘‘(h) SIZE OF LEASE TRACTS.—The’’; 

23 (9) by striking ‘‘Secretary; (8)’’ and all that fol24 lows through ‘‘Drilling, production,’’ and inserting 

25 ‘‘Secretary. 
229 

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1 ‘‘(i) TERMS.— 

2 ‘‘(1) IN GENERAL.—Each lease shall be issued 

3 for an initial period of not more than 10 years, and 

4 shall be extended for so long thereafter as oil or gas 

5 is produced from the lease in paying quantities or 

6 drilling or reworking operations, as approved by the 

7 Secretary, are conducted on the leased land. 

8 ‘‘(2) TERMINATION.—No lease issued under 

9 this section covering lands capable of producing oil 

10 or gas in paying quantities shall expire because the 

11 lessee fails to produce the same unless the lessee is 

12 allowed a reasonable time, which shall be not less 

13 than 60 days after notice by registered or certified 

14 mail, within which to place the lands in producing 

15 status or unless, after such status is established, 

16 production is discontinued on the leased premises 

17 without permission granted by the Secretary under 

18 the provisions of this Act. 

19 ‘‘(3) RENEWAL OF LEASES WITHOUT DISCOV20 ERIES.—At the end of the primary term of a lease, 

21 the Secretary shall renew for one additional 10-year 

22 term a lease that does not meet the requirements of 

23 paragraph (1) if the lessee submits to the Secretary 

24 an application for renewal not later than 60 days be25 fore the expiration of the primary lease, pays the 
230 

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1 Secretary a renewal fee of $100 per acre of leased 

2 land, and— 

3 ‘‘(A) the lessee provides evidence, and the 

4 Secretary agrees that, the lessee has diligently 

5 pursued exploration that warrants continuation 

6 with the intent of continued exploration or fu7 ture potential development of the leased land; 

8 or 

9 ‘‘(B) all or part of the lease 

10 ‘‘(i) is part of a unit agreement cov11 ering a lease described in subparagraph 

12 (A); and 

13 ‘‘(ii) has not been previously con14 tracted out of the unit. 

15 ‘‘(4) APPLICABILITY.—This subsection applies 

16 to a lease that is in effect on or after the date of 

17 enactment of the Energy Policy Act of 2005. 

18 ‘‘(j) UNIT AGREEMENTS.— 

19 ‘‘(1) IN GENERAL.—For the purpose of con20 servation of the natural resources of all or part of 

21 any oil or gas pool, field, reservoir, or like area, les22 sees (including representatives) of the pool, field, 

23 reservoir, or like area may unite with each other, or 

24 jointly or separately with others, in collectively 

25 adopting and operating under a unit agreement for 
231 

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1 all or part of the pool, field, reservoir, or like area 

2 (whether or not any other part of the oil or gas pool, 

3 field, reservoir, or like area is already subject to any 

4 cooperative or unit plan of development or oper5 ation), if the Secretary determines the action to be 

6 necessary or advisable in the public interest. In de7 termining the public interest, the Secretary shall, 

8 among other things, examine the extent to which the 

9 unit agreement will minimize the impact to surface 

10 resources of the leases and will facilitate consolida11 tion of facilities. 

12 ‘‘(2) CONSULTATION.—In making a determina13 tion under paragraph (1), the Secretary shall consult 

14 with the State of Alaska or a Regional Corporation 

15 (as defined in section 3 of the Alaska Native Claims 

16 Settlement Act (43 U.S.C. 1602)) with respect to 

17 the creation or expansion of units that include acre18 age in which the State of Alaska or the Regional 

19 Corporation has an interest in the mineral estate. 

20 ‘‘(3) PRODUCTION ALLOCATION METHOD21 OLOGY.—(A) The Secretary may use a production 

22 allocation methodology for each participating area 

23 within a unit that includes solely Federal land in the 

24 Reserve. 
232 

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1 ‘‘(B) The Secretary shall use a production allo2 cation methodology for each participating area with3 in a unit that includes Federal land in the Reserve 

4 and non-Federal land based on the characteristics of 

5 each specific oil or gas pool, field, reservoir, or like 

6 area to take into account reservoir heterogeneity and 

7 area variation in reservoir producibility across di8 verse leasehold interests. The implementation of the 

9 foregoing production allocation methodology shall be 

10 controlled by agreement among the affected lessors 

11 and lessees. 

12 ‘‘(4) BENEFIT OF OPERATIONS.—Drilling, pro13 duction,’’; 

14 (10) by striking ‘‘When separate’’ and inserting 

15 the following: 

16 ‘‘(5) POOLING.—If separate’’; 

17 (11) by inserting ‘‘(in consultation with the 

18 owners of the other land)’’ after ‘‘determined by the 

19 Secretary of the Interior’’; 

20 (12) by striking ‘‘thereto; (10) to’’ and all that 

21 follows through ‘‘the terms provided therein’’ and in22 serting ‘‘to the agreement. 

23 ‘‘(k) EXPLORATION INCENTIVES.— 

24 ‘‘(1) IN GENERAL.— 
233 

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1 ‘‘(A) WAIVER, SUSPENSION, OR REDUC2 TION.—To encourage the greatest ultimate re3 covery of oil or gas or in the interest of con4 servation, the Secretary may waive, suspend, or 

5 reduce the rental fees or minimum royalty, or 

6 reduce the royalty on an entire leasehold (in7 cluding on any lease operated pursuant to a 

8 unit agreement), whenever (after consultation 

9 with the State of Alaska and the North Slope 

10 Borough of Alaska and the concurrence of any 

11 Regional Corporation for leases that include 

12 land that was made available for acquisition by 

13 the Regional Corporation under the provisions 

14 of section 1431(o) of the Alaska National Inter15 est Lands Conservation Act (16 U.S.C. 3101 et 

16 seq.)) in the judgment of the Secretary it is 

17 necessary to do so to promote development, or 

18 whenever in the judgment of the Secretary the 

19 leases cannot be successfully operated under the 

20 terms provided therein. 

21 ‘‘(B) APPLICABILITY.—This paragraph ap22 plies to a lease that is in effect on or after the 

23 date of enactment of the Energy Policy Act of 

24 2005.’’; 
234 

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1 (13) by striking ‘‘The Secretary is authorized 

2 to’’ and inserting the following: 

3 ‘‘(2) SUSPENSION OF OPERATIONS AND PRO4 DUCTION.—The Secretary may’’; 

5 (14) by striking ‘‘In the event’’ and inserting 

6 the following: 

7 ‘‘(3) SUSPENSION OF PAYMENTS.—If’’; 

8 (15) by striking ‘‘thereto; and (11) all’’ and in9 serting ‘‘to the lease. 

10 ‘‘(l) RECEIPTS.—All’’; 

11 (16) by redesignating subparagraphs (A), (B), 

12 and (C) as paragraphs (1), (2), and (3), respectively; 

13 (17) by striking ‘‘Any agency’’ and inserting 

14 the following: 

15 ‘‘(m) EXPLORATIONS.—Any agency’’; 

16 (18) by striking ‘‘Any action’’ and inserting the 

17 following: 

18 ‘‘(n) ENVIRONMENTAL IMPACT STATEMENTS.— 

19 ‘‘(1) JUDICIAL REVIEW.—Any action’’; 

20 (19) by striking ‘‘The detailed’’ and inserting 

21 the following: 

22 ‘‘(2) INITIAL LEASE SALES.—The detailed’’; 

23 (20) by striking ‘‘of the Naval Petroleum Re24 serves Production Act of 1976 (90 Stat. 304; 42 

25 U.S.C. 6504)’’; and 
235 

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1 (21) by adding at the end the following: 

2 ‘‘(o) REGULATIONS.—As soon as practicable after the 

3 date of enactment of the Energy Policy Act of 2005, the 

4 Secretary shall issue regulations to implement this section. 

5 ‘‘(p) WAIVER OF ADMINISTRATION FOR CONVEYED

6 LANDS.— 

7 ‘‘(1) IN GENERAL.—Notwithstanding section 

8 14(g) of the Alaska Native Claims Settlement Act 

9 (43 U.S.C. 1613(g)), the Secretary of the Interior 

10 shall waive administration of any oil and gas lease 

11 to the extent that the lease covers any land in the 

12 Reserve in which all of the subsurface estate is con13 veyed to the Arctic Slope Regional Corporation (re14 ferred to in this subsection as the ‘Corporation’). 

15 ‘‘(2) PARTIAL CONVEYANCE.— 

16 ‘‘(A) IN GENERAL.—In a case in which a 

17 conveyance of a subsurface estate described in 

18 paragraph (1) does not include all of the land 

19 covered by the oil and gas lease, the person that 

20 owns the subsurface estate in any particular 

21 portion of the land covered by the lease shall be 

22 entitled to all of the revenues reserved under 

23 the lease as to that portion, including, without 

24 limitation, all the royalty payable with respect 
236 

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1 to oil or gas produced from or allocated to that 

2 portion. 

3 ‘‘(B) SEGREGATION OF LEASE.—In a case 

4 described in subparagraph (A), the Secretary of 

5 the Interior shall— 

6 ‘‘(i) segregate the lease into 2 leases, 

7 1 of which shall cover only the subsurface 

8 estate conveyed to the Corporation; and 

9 ‘‘(ii) waive administration of the lease 

10 that covers the subsurface estate conveyed 

11 to the Corporation. 

12 ‘‘(C) NO CHANGE IN LEASE OBLIGA13 TIONS.—The segregation of the lease described 

14 in subparagraph (B)(i) has no effect on the ob15 ligations of the lessee under either of the result16 ing leases, including obligations relating to op17 erations, production, or other circumstances 

18 (other than payment of rentals or royalties). 

19 ‘‘(3) AUTHORITY TO MANAGE FEDERALLY

20 OWNED SURFACE ESTATE.—Nothing in this sub21 section limits the authority of the Secretary of the 

22 Interior to manage the federally-owned surface es23 tate within the Reserve.’’. 
237 

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1 (c) CONFORMING AMENDMENTS.—Section 104 of the 

2 Naval Petroleum Reserves Production Act of 1976 (42 

3 U.S.C. 6504) is amended— 

4 (1) by striking subsection (a); and 

5 (2) by redesignating subsections (b) through (d) 

6 as subsections (a) through (c), respectively. 

7 SEC. 318. NORTH SLOPE SCIENCE INITIATIVE. 

8 (a) ESTABLISHMENT.— 

9 (1) IN GENERAL.—The Secretary of the Inte10 rior shall establish a long-term initiative to be known 

11 as the ‘‘North Slope Science Initiative’’ (referred to 

12 in this section as the ‘‘Initiative’’). 

13 (2) PURPOSE.—The purpose of the Initiative 

14 shall be to implement efforts to coordinate collection 

15 of scientific data that will provide a better under16 standing of the terrestrial, aquatic, and marine eco17 systems of the North Slope of Alaska. 

18 (b) OBJECTIVES.—To ensure that the Initiative is 

19 conducted through a comprehensive science strategy and 

20 implementation plan, the Initiative shall, at a minimum— 

21 (1) identify and prioritize information needs for 

22 inventory, monitoring, and research activities to ad23 dress the individual and cumulative effects of past, 

24 ongoing, and anticipated development activities and 

25 environmental change on the North Slope; 
238 

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1 (2) develop an understanding of information 

2 needs for regulatory and land management agencies, 

3 local governments, and the public; 

4 (3) focus on prioritization of pressing natural 

5 resource management and ecosystem information 

6 needs, coordination, and cooperation among agencies 

7 and organizations; 

8 (4) coordinate ongoing and future inventory, 

9 monitoring, and research activities to minimize du10 plication of effort, share financial resources and ex11 pertise, and assure the collection of quality informa12 tion; 

13 (5) identify priority needs not addressed by 

14 agency science programs in effect on the date of en15 actment of this Act and develop a funding strategy 

16 to meet those needs; 

17 (6) provide a consistent approach to high cal18 iber science, including inventory, monitoring, and re19 search; 

20 (7) maintain and improve public and agency ac21 cess to— 

22 (A) accumulated and ongoing research; 

23 and 

24 (B) contemporary and traditional local 

25 knowledge; and 
239 

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1 (8) ensure through appropriate peer review that 

2 the science conducted by participating agencies and 

3 organizations is of the highest technical quality. 

4 (c) MEMBERSHIP.— 

5 (1) IN GENERAL.—To ensure comprehensive 

6 collection of scientific data, in carrying out the Ini7 tiative, the Secretary shall consult and coordinate 

8 with Federal, State, and local agencies that have re9 sponsibilities for land and resource management 

10 across the North Slope. 

11 (2) COOPERATIVE AGREEMENTS.—The Sec12 retary shall enter into cooperative agreements with 

13 the State of Alaska, the North Slope Borough, the 

14 Arctic Slope Regional Corporation, and other Fed15 eral agencies as appropriate to coordinate efforts, 

16 share resources, and fund projects under this sec17 tion. 

18 (d) SCIENCE TECHNICAL ADVISORY PANEL.— 

19 (1) IN GENERAL.—The Initiative shall include a 

20 panel to provide advice on proposed inventory, moni21 toring, and research functions. 

22 (2) MEMBERSHIP.—The panel described in 

23 paragraph (1) shall consist of a representative group 

24 of not more than 15 scientists and technical experts 

25 from diverse professions and interests, including the 
240 

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1 oil and gas industry, subsistence users, Native Alas2 kan entities, conservation organizations, wildlife 

3 management organizations, and academia, as deter4 mined by the Secretary. 

5 (e) REPORTS.—Not later than 3 years after the date 

6 of enactment of this section and each year thereafter, the 

7 Secretary shall publish a report that describes the studies 

8 and findings of the Initiative. 

9 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated such sums as are nec11 essary to carry out this section. 

12 SEC. 319. ORPHANED, ABANDONED, OR IDLED WELLS ON 

13 FEDERAL LAND. 

14 (a) IN GENERAL.—The Secretary, in cooperation 

15 with the Secretary of Agriculture, shall establish a pro16 gram not later than 1 year after the date of enactment 

17 of this Act to remediate, reclaim, and close orphaned, 

18 abandoned, or idled oil and gas wells located on land ad19 ministered by the land management agencies within the 

20 Department of the Interior and the Department of Agri21 culture. 

22 (b) ACTIVITIES.—The program under subsection (a) 

23 shall— 

24 (1) include a means of ranking orphaned, aban25 doned, or idled wells sites for priority in remedi-
241 

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1 ation, reclamation, and closure, based on public 

2 health and safety, potential environmental harm, 

3 and other land use priorities; 

4 (2) provide for identification and recovery of 

5 the costs of remediation, reclamation, and closure 

6 from persons or other entities currently providing a 

7 bond or other financial assurance required under 

8 State or Federal law for an oil or gas well that is 

9 orphaned, abandoned, or idled; and 

10 (3) provide for recovery from the persons or en11 tities identified under paragraph (2), or their sure12 ties or guarantors, of the costs of remediation, rec13 lamation, and closure of such wells. 

14 (c) COOPERATION AND CONSULTATIONS.—In car15 rying out the program under subsection (a), the Secretary 

16 shall— 

17 (1) work cooperatively with the Secretary of Ag18 riculture and the States within which Federal land 

19 is located; and 

20 (2) consult with the Secretary of Energy and 

21 the Interstate Oil and Gas Compact Commission. 

22 (d) PLAN.—Not later than 1 year after the date of 

23 enactment of this Act, the Secretary, in cooperation with 

24 the Secretary of Agriculture, shall submit to Congress a 

25 plan for carrying out the program under subsection (a). 
242 

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1 (e) IDLED WELL.—For the purposes of this section, 

2 a well is idled if— 

3 (1) the well has been nonoperational for at least 

4 7 years; and 

5 (2) there is no anticipated beneficial use for the 

6 well. 

7 (f) TECHNICAL ASSISTANCE PROGRAM FOR NON8 FEDERAL LAND.— 

9 (1) IN GENERAL.—The Secretary of Energy 

10 shall establish a program to provide technical and fi11 nancial assistance to oil and gas producing States to 

12 facilitate State efforts over a 10-year period to en13 sure a practical and economical remedy for environ14 mental problems caused by orphaned or abandoned 

15 oil and gas exploration or production well sites on 

16 State or private land. 

17 (2) ASSISTANCE.—The Secretary of Energy 

18 shall work with the States, through the Interstate 

19 Oil and Gas Compact Commission, to assist the 

20 States in quantifying and mitigating environmental 

21 risks of onshore orphaned or abandoned oil or gas 

22 wells on State and private land. 

23 (3) ACTIVITIES.—The program under para24 graph (1) shall include— 
243 

•S 10 PCS 

1 (A) mechanisms to facilitate identification, 

2 if feasible, of the persons currently providing a 

3 bond or other form of financial assurance re4 quired under State or Federal law for an oil or 

5 gas well that is orphaned or abandoned; 

6 (B) criteria for ranking orphaned or aban7 doned well sites based on factors such as public 

8 health and safety, potential environmental 

9 harm, and other land use priorities; 

10 (C) information and training programs on 

11 best practices for remediation of different types 

12 of sites; and 

13 (D) funding of State mitigation efforts on 

14 a cost-shared basis. 

15 (g) AUTHORIZATION OF APPROPRIATIONS.— 

16 (1) IN GENERAL.—There are authorized to be 

17 appropriated to carry out this section $25,000,000 

18 for each of fiscal years 2006 through 2010. 

19 (2) USE.—Of the amounts authorized under 

20 paragraph (1), $5,000,000 are authorized for each 

21 fiscal year for activities under subsection (f). 

22 SEC. 320. COMBINED HYDROCARBON LEASING. 

23 (a) SPECIAL PROVISIONS REGARDING LEASING.— 

24 Section 17(b)(2) of the Mineral Leasing Act (30 U.S.C. 

25 226(b)(2)) is amended— 
244 

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1 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; 

2 (2) in the first sentence of subparagraph (A) 

3 (as designated by paragraph (1)), by striking ‘‘they 

4 shall be’’ and inserting ‘‘the lands may be’’; and 

5 (3) by adding at the end the following: 

6 ‘‘(B) For any area that contains any combination of 

7 tar sand and oil or gas (or both), the Secretary may issue 

8 under this Act, separately— 

9 ‘‘(i) a lease for exploration for and extraction of 

10 tar sand; and 

11 ‘‘(ii) a lease for exploration for and development 

12 of oil and gas. 

13 ‘‘(C) A lease described in subparagraph (B) shall 

14 have provisions addressing the appropriate accommoda15 tion of resources. 

16 ‘‘(D) A lease issued for tar sand development shall 

17 be issued using the same bidding process, annual rental, 

18 and posting period as a lease issued for oil and gas, except 

19 that the minimum acceptable bid required for a lease 

20 issued for tar sand shall be $2 per acre.’’. 

21 (b) CONFORMING AMENDMENT.—Section 

22 17(b)(1)(B) of the Mineral Leasing Act (30 U.S.C. 

23 226(b)(1)(B)) is amended in the second sentence by in24 serting ‘‘subject to paragraph (2)(B),’’ after ‘‘There25 after,’’. 
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1 (c) REGULATIONS.—Not later than 45 days after the 

2 date of enactment of this Act, the Secretary of the Interior 

3 shall issue final regulations to implement the amendments 

4 made by this section. 

5 SEC. 321. ALTERNATE ENERGY-RELATED USES ON THE 

6 OUTER CONTINENTAL SHELF. 

7 (a) AMENDMENT TO OUTER CONTINENTAL SHELF

8 LANDS ACT.—Section 8 of the Outer Continental Shelf 

9 Lands Act (43 U.S.C. 1337) is amended by adding at the 

10 end the following: 

11 ‘‘(p) LEASES, EASEMENTS, OR RIGHTS-OF-WAY FOR

12 ENERGY AND RELATED PURPOSES.— 

13 ‘‘(1) IN GENERAL.—The Secretary, in consulta14 tion with the Secretary of the Department in which 

15 the Coast Guard is operating and other relevant de16 partments and agencies of the Federal Government, 

17 may grant a lease, easement, or right-of-way on the 

18 outer Continental Shelf for activities not otherwise 

19 authorized in this Act, the Deepwater Port Act of 

20 1974 (33 U.S.C. 1501 et seq.), the Ocean Thermal 

21 Energy Conversion Act of 1980 (42 U.S.C. 9101 et 

22 seq.), or other applicable law, if those activities— 

23 ‘‘(A) support exploration, development, or 

24 production of oil or natural gas, except that a 

25 lease, easement, or right-of-way shall not be 
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1 granted in an area in which oil and gas 

2 preleasing, leasing, and related activities are 

3 prohibited by a moratorium; 

4 ‘‘(B) support transportation of oil or nat5 ural gas, excluding shipping activities; 

6 ‘‘(C) produce or support production, trans7 portation, or transmission of energy from 

8 sources other than oil and gas; or 

9 ‘‘(D) use, for energy-related purposes or 

10 for other authorized marine-related purposes, 

11 facilities currently or previously used for activi12 ties authorized under this Act, except that any 

13 oil and gas energy-related uses shall not be au14 thorized in areas in which oil and gas 

15 preleasing, leasing, and related activities are 

16 prohibited by a moratorium. 

17 ‘‘(2) PAYMENTS.—The Secretary shall establish 

18 royalties, fees, rentals, bonus, or other payments to 

19 ensure a fair return to the United States for any 

20 lease, easement, or right-of-way granted under this 

21 subsection. 

22 ‘‘(3) COMPETITIVE OR NONCOMPETITIVE

23 BASIS.—Except with respect to projects that meet 

24 the criteria established under section 321(d) of the 

25 Energy Policy Act of 2005, the Secretary shall issue 
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1 a lease, easement, or right-of-way under paragraph 

2 (1) on a competitive basis unless the Secretary de3 termines after public notice of a proposed lease, 

4 easement, or right-of-way that there is no competi5 tive interest. 

6 ‘‘(4) REQUIREMENTS.—The Secretary shall en7 sure that any activity under this subsection is car8 ried out in a manner that provides for— 

9 ‘‘(A) safety; 

10 ‘‘(B) protection of the environment; 

11 ‘‘(C) prevention of waste; 

12 ‘‘(D) conservation of the natural resources 

13 of the outer Continental Shelf; 

14 ‘‘(E) coordination with relevant Federal 

15 agencies; 

16 ‘‘(F) protection of national security inter17 ests of the United States; 

18 ‘‘(G) protection of correlative rights in the 

19 outer Continental Shelf; 

20 ‘‘(H) a fair return to the United States for 

21 any lease, easement, or right-of-way under this 

22 subsection; 

23 ‘‘(I) prevention of interference with reason24 able uses (as determined by the Secretary) of 
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1 the exclusive economic zone, the high seas, and 

2 the territorial seas; 

3 ‘‘(J) consideration of— 

4 ‘‘(i) the location of, and any schedule 

5 relating to, a lease, easement, or right-of6 way for an area of the outer Continental 

7 Shelf; and 

8 ‘‘(ii) any other use of the sea or sea9 bed, including use for a fishery, a sealane, 

10 a potential site of a deepwater port, or 

11 navigation; 

12 ‘‘(K) public notice and comment on any 

13 proposal submitted for a lease, easement, or 

14 right-of-way under this subsection; and 

15 ‘‘(L) oversight, inspection, research, moni16 toring, and enforcement relating to a lease, 

17 easement, or right-of-way under this subsection. 

18 ‘‘(5) LEASE DURATION, SUSPENSION, AND CAN19 CELLATION.—The Secretary shall provide for the 

20 duration, issuance, transfer, renewal, suspension, 

21 and cancellation of a lease, easement, or right-of-way 

22 under this subsection. 

23 ‘‘(6) SECURITY.—The Secretary shall require 

24 the holder of a lease, easement, or right-of-way 

25 granted under this subsection to— 
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1 ‘‘(A) furnish a surety bond or other form 

2 of security, as prescribed by the Secretary; 

3 ‘‘(B) comply with such other requirements 

4 as the Secretary considers necessary to protect 

5 the interests of the public and the United 

6 States; and 

7 ‘‘(C) provide for the restoration of the 

8 lease, easement, or right-of-way. 

9 ‘‘(7) COORDINATION AND CONSULTATION WITH

10 AFFECTED STATE AND LOCAL GOVERNMENTS.—The 

11 Secretary shall provide for coordination and con12 sultation with the Governor of any State or the exec13 utive of any local government that may be affected 

14 by a lease, easement, or right-of-way under this sub15 section. 

16 ‘‘(8) REGULATIONS.—Not later than 270 days 

17 after the date of enactment of the Energy Policy Act 

18 of 2005, the Secretary, in consultation with the Sec19 retary of Defense, the Secretary of the Department 

20 in which the Coast Guard is operating, the Secretary 

21 of Commerce, heads of other relevant departments 

22 and agencies of the Federal Government, and the 

23 Governor of any affected State, shall issue any nec24 essary regulations to carry out this subsection. 
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1 ‘‘(9) EFFECT OF SUBSECTION.—Nothing in this 

2 subsection displaces, supersedes, limits, or modifies 

3 the jurisdiction, responsibility, or authority of any 

4 Federal or State agency under any other Federal 

5 law. 

6 ‘‘(10) APPLICABILITY.—This subsection does 

7 not apply to any area on the outer Continental Shelf 

8 within the exterior boundaries of any unit of the Na9 tional Park System, National Wildlife Refuge Sys10 tem, or National Marine Sanctuary System, or any 

11 National Monument.’’. 

12 (b) COORDINATED OCS MAPPING INITIATIVE.— 

13 (1) IN GENERAL.—The Secretary, in coopera14 tion with the Secretary of Commerce, the Com15 mandant of the Coast Guard, and the Secretary of 

16 Defense, shall establish an interagency comprehen17 sive digital mapping initiative for the outer Conti18 nental Shelf to assist in decisionmaking relating to 

19 the siting of activities under subsection (p) of sec20 tion 8 of the Outer Continental Shelf Lands Act (43 

21 U.S.C. 1337) (as added by subsection (a)). 

22 (2) USE OF DATA.—The mapping initiative 

23 shall use, and develop procedures for accessing, data 

24 collected before the date on which the mapping ini-
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1 tiative is established, to the maximum extent prac2 ticable. 

3 (3) INCLUSIONS.—Mapping carried out under 

4 the mapping initiative shall include an indication of 

5 the locations on the outer Continental Shelf of— 

6 (A) Federally-permitted activities; 

7 (B) obstructions to navigation; 

8 (C) submerged cultural resources; 

9 (D) undersea cables; 

10 (E) offshore aquaculture projects; and 

11 (F) any area designated for the purpose of 

12 safety, national security, environmental protec13 tion, or conservation and management of living 

14 marine resources. 

15 (c) CONFORMING AMENDMENT.—Section 8 of the 

16 Outer Continental Shelf Lands Act (43 U.S.C. 1337) is 

17 amended by striking the section heading and inserting the 

18 following: ‘‘LEASES, EASEMENTS, AND RIGHTS-OF-WAY

19 ON THE OUTER CONTINENTAL SHELF.—’’. 

20 (d) SAVINGS PROVISION.—Nothing in the amend21 ment made by subsection (a) requires the resubmittal of 

22 any document that was previously submitted or the reau23 thorization of any action that was previously authorized 

24 with respect to a project for which, before the date of en25 actment of this Act— 
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1 (1) an offshore test facility has been con2 structed; or 

3 (2) a request for a proposal has been issued by 

4 a public authority. 

5 SEC. 322. PRESERVATION OF GEOLOGICAL AND GEO6 PHYSICAL DATA. 

7 (a) SHORT TITLE.—This section may be cited as the 

8 ‘‘National Geological and Geophysical Data Preservation 

9 Program Act of 2005’’. 

10 (b) PROGRAM.—The Secretary shall carry out a Na11 tional Geological and Geophysical Data Preservation Pro12 gram in accordance with this section— 

13 (1) to archive geologic, geophysical, and engi14 neering data, maps, well logs, and samples; 

15 (2) to provide a national catalog of such archi16 val material; and 

17 (3) to provide technical and financial assistance 

18 related to the archival material. 

19 (c) PLAN.—Not later than 1 year after the date of 

20 enactment of this Act, the Secretary shall submit to Con21 gress a plan for the implementation of the Program. 

22 (d) DATA ARCHIVE SYSTEM.— 

23 (1) ESTABLISHMENT.—The Secretary shall es24 tablish, as a component of the Program, a data ar25 chive system to provide for the storage, preservation, 
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1 and archiving of subsurface, surface, geological, geo2 physical, and engineering data and samples. The 

3 Secretary, in consultation with the Advisory Com4 mittee, shall develop guidelines relating to the data 

5 archive system, including the types of data and sam6 ples to be preserved. 

7 (2) SYSTEM COMPONENTS.—The system shall 

8 be comprised of State agencies that elect to be part 

9 of the system and agencies within the Department 

10 of the Interior that maintain geological and geo11 physical data and samples that are designated by 

12 the Secretary in accordance with this subsection. 

13 The Program shall provide for the storage of data 

14 and samples through data repositories operated by 

15 such agencies. 

16 (3) LIMITATION OF DESIGNATION.—The Sec17 retary may not designate a State agency as a com18 ponent of the data archive system unless that agency 

19 is the agency that acts as the geological survey in 

20 the State. 

21 (4) DATA FROM FEDERAL LAND.—The data ar22 chive system shall provide for the archiving of rel23 evant subsurface data and samples obtained from 

24 Federal land— 
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1 (A) in the most appropriate repository des2 ignated under paragraph (2), with preference 

3 being given to archiving data in the State in 

4 which the data were collected; and 

5 (B) consistent with all applicable law and 

6 requirements relating to confidentiality and pro7 prietary data. 

8 (e) NATIONAL CATALOG.— 

9 (1) IN GENERAL.—As soon as practicable after 

10 the date of enactment of this Act, the Secretary 

11 shall develop and maintain, as a component of the 

12 Program, a national catalog that identifies— 

13 (A) data and samples available in the data 

14 archive system established under subsection (d); 

15 (B) the repository for particular material 

16 in the system; and 

17 (C) the means of accessing the material. 

18 (2) AVAILABILITY.—The Secretary shall make 

19 the national catalog accessible to the public on the 

20 site of the Survey on the Internet, consistent with all 

21 applicable requirements related to confidentiality 

22 and proprietary data. 

23 (f) ADVISORY COMMITTEE.— 
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1 (1) IN GENERAL.—The Advisory Committee 

2 shall advise the Secretary on planning and imple3 mentation of the Program. 

4 (2) NEW DUTIES.—In addition to its duties 

5 under the National Geologic Mapping Act of 1992 

6 (43 U.S.C. 31a et seq.), the Advisory Committee 

7 shall perform the following duties: 

8 (A) Advise the Secretary on developing 

9 guidelines and procedures for providing assist10 ance for facilities under subsection (g)(1). 

11 (B) Review and critique the draft imple12 mentation plan prepared by the Secretary under 

13 subsection (c). 

14 (C) Identify useful studies of data archived 

15 under the Program that will advance under16 standing of the Nation’s energy and mineral re17 sources, geologic hazards, and engineering geol18 ogy. 

19 (D) Review the progress of the Program in 

20 archiving significant data and preventing the 

21 loss of such data, and the scientific progress of 

22 the studies funded under the Program. 

23 (E) Include in the annual report to the 

24 Secretary required under section 5(b)(3) of the 

25 National Geologic Mapping Act of 1992 (43 
256 

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1 U.S.C. 31d(b)(3)) an evaluation of the progress 

2 of the Program toward fulfilling the purposes of 

3 the Program under subsection (b). 

4 (g) FINANCIAL ASSISTANCE.— 

5 (1) ARCHIVE FACILITIES.—Subject to the avail6 ability of appropriations, the Secretary shall provide 

7 financial assistance to a State agency that is des8 ignated under subsection (d)(2) for providing facili9 ties to archive energy material. 

10 (2) STUDIES.—Subject to the availability of ap11 propriations, the Secretary shall provide financial as12 sistance to any State agency designated under sub13 section (d)(2) for studies and technical assistance 

14 activities that enhance understanding, interpreta15 tion, and use of materials archived in the data ar16 chive system established under subsection (d). 

17 (3) FEDERAL SHARE.—The Federal share of 

18 the cost of an activity carried out with assistance 

19 under this subsection shall be not more than 50 per20 cent of the total cost of the activity. 

21 (4) PRIVATE CONTRIBUTIONS.—The Secretary 

22 shall apply to the non-Federal share of the cost of 

23 an activity carried out with assistance under this 

24 subsection the value of private contributions of prop25 erty and services used for that activity. 
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1 (h) REPORT.—The Secretary shall include in each re2 port under section 8 of the National Geologic Mapping Act 

3 of 1992 (43 U.S.C. 31g)— 

4 (1) a description of the status of the Program; 

5 (2) an evaluation of the progress achieved in 

6 developing the Program during the period covered by 

7 the report; and 

8 (3) any recommendations for legislative or other 

9 action the Secretary considers necessary and appro10 priate to fulfill the purposes of the Program under 

11 subsection (b). 

12 (i) MAINTENANCE OF STATE EFFORT.—It is the in13 tent of Congress that the States not use this section as 

14 an opportunity to reduce State resources applied to the 

15 activities that are the subject of the Program. 

16 (j) DEFINITIONS.—In this section: 

17 (1) ADVISORY COMMITTEE.—The term ‘‘Advi18 sory Committee’’ means the advisory committee es19 tablished under section 5 of the National Geologic 

20 Mapping Act of 1992 (43 U.S.C. 31d). 

21 (2) PROGRAM.—The term ‘‘Program’’ means 

22 the National Geological and Geophysical Data Pres23 ervation Program carried out under this section. 
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1 (3) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of the Interior, acting through the Di3 rector of the United States Geological Survey. 

4 (4) SURVEY.—The term ‘‘Survey’’ means the 

5 United States Geological Survey. 

6 (k) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to carry out this section 

8 $30,000,000 for each of fiscal years 2006 through 2010. 

9 SEC. 323. OIL AND GAS LEASE ACREAGE LIMITATIONS. 

10 Section 27(d)(1) of the Mineral Leasing Act (30 

11 U.S.C. 184(d)(1)) is amended by inserting after ‘‘acreage 

12 held in special tar sand areas’’ the following: ‘‘, and acre13 age under any lease any portion of which has been com14 mitted to a federally approved unit or cooperative plan or 

15 communitization agreement or for which royalty (includ16 ing compensatory royalty or royalty in-kind) was paid in 

17 the preceding calendar year,’’. 

18 SEC. 324. ASSESSMENT OF DEPENDENCE OF STATE OF HA19 WAII ON OIL. 

20 (a) ASSESSMENT.—The Secretary shall assess the 

21 economic implications of the dependence of the State of 

22 Hawaii on oil as the principal source of energy for the 

23 State, including— 
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1 (1) the short- and long-term prospects for crude 

2 oil supply disruption and price volatility and poten3 tial impacts on the economy of Hawaii; 

4 (2) the economic relationship between oil-fired 

5 generation of electricity from residual fuel and re6 fined petroleum products consumed for ground, ma7 rine, and air transportation; 

8 (3) the technical and economic feasibility of in9 creasing the contribution of renewable energy re10 sources for generation of electricity, on an island-by11 island basis, including— 

12 (A) siting and facility configuration; 

13 (B) environmental, operational, and safety 

14 considerations; 

15 (C) the availability of technology; 

16 (D) the effects on the utility system, in17 cluding reliability; 

18 (E) infrastructure and transport require19 ments; 

20 (F) community support; and 

21 (G) other factors affecting the economic 

22 impact of such an increase and any effect on 

23 the economic relationship described in para24 graph (2); 
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1 (4) the technical and economic feasibility of 

2 using liquefied natural gas to displace residual fuel 

3 oil for electric generation, including neighbor island 

4 opportunities, and the effect of the displacement on 

5 the economic relationship described in paragraph 

6 (2), including— 

7 (A) the availability of supply; 

8 (B) siting and facility configuration for on9 shore and offshore liquefied natural gas receiv10 ing terminals; 

11 (C) the factors described in subparagraphs 

12 (B) through (F) of paragraph (3); and 

13 (D) other economic factors; 

14 (5) the technical and economic feasibility of 

15 using renewable energy sources (including hydrogen) 

16 for ground, marine, and air transportation energy 

17 applications to displace the use of refined petroleum 

18 products, on an island-by-island basis, and the eco19 nomic impact of the displacement on the relationship 

20 described in (2); and 

21 (6) an island-by-island approach to— 

22 (A) the development of hydrogen from re23 newable resources; and 

24 (B) the application of hydrogen to the en25 ergy needs of Hawaii 
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1 (b) CONTRACTING AUTHORITY.—The Secretary may 

2 carry out the assessment under subsection (a) directly or, 

3 in whole or in part, through 1 or more contracts with 

4 qualified public or private entities. 

5 (c) REPORT.—Not later than 300 days after the date 

6 of enactment of this Act, the Secretary shall prepare (in 

7 consultation with agencies of the State of Hawaii and 

8 other stakeholders, as appropriate), and submit to Con9 gress, a report describing the findings, conclusions, and 

10 recommendations resulting from the assessment. 

11 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated such sums as are nec13 essary to carry out this section. 

14 SEC. 325. DENALI COMMISSION. 

15 (a) DEFINITION OF COMMISSION.—In this section, 

16 the term ‘‘Commission’’ means the Denali Commission es17 tablished by the Denali Commission Act of 1998 (42 

18 U.S.C. 3121 note; Public Law 105–277). 

19 (b) ENERGY PROGRAMS.—The Commission shall use 

20 amounts made available under subsection (d) to carry out 

21 energy programs, including— 

22 (1) energy generation and development, includ23 ing— 

24 (A) fuel cells, hydroelectric, solar, wind, 

25 wave, and tidal energy; and 
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1 (B) alternative energy sources; 

2 (2) the construction of energy transmission, in3 cluding interties; 

4 (3) the replacement and cleanup of fuel tanks; 

5 (4) the construction of fuel transportation net6 works and related facilities; 

7 (5) power cost equalization programs; and 

8 (6) projects using coal as a fuel, including coal 

9 gasification projects. 

10 (c) OPEN MEETINGS.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), a meeting of the Commission shall be 

13 open to the public if— 

14 (A) the Commission members take action 

15 on behalf of the Commission; or 

16 (B) the deliberations of the Commission 

17 determine, or result in the joint conduct or dis18 position of, official Commission business. 

19 (2) EXCEPTIONS.—Paragraph (1) shall not 

20 apply to any portion of a Commission meeting for 

21 which the Commission, in public session, votes to 

22 close the meeting for the reasons described in para23 graph (2), (4), (5), or (6) of subsection (c) of section 

24 552b of title 5, United States Code. 

25 (3) PUBLIC NOTICE.— 
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1 (A) IN GENERAL.—At least 1 week before 

2 a meeting of the Commission, the Commission 

3 shall make a public announcement of the meet4 ing that describes— 

5 (i) the time, place, and subject matter 

6 of the meeting; 

7 (ii) whether the meeting is to be open 

8 or closed to the public; and 

9 (iii) the name and telephone number 

10 of an appropriate person to respond to re11 quests for information about the meeting. 

12 (B) ADDITIONAL NOTICE.—The Commis13 sion shall make a public announcement of any 

14 change to the information made available under 

15 subparagraph (A) at the earliest practicable 

16 time. 

17 (4) MINUTES.—The Commission shall keep, 

18 and make available to the public, a transcript, elec19 tronic recording, or minutes from each Commission 

20 meeting, except for portions of the meeting closed 

21 under paragraph (2). 

22 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

23 authorized to be appropriated to the Commission not more 

24 than $55,000,000 for each of fiscal years 2006 through 

25 2015 to carry out subsection (b). 
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1 SEC. 326. COMPREHENSIVE INVENTORY OF OCS OIL AND 

2 NATURAL GAS RESOURCES. 

3 (a) IN GENERAL.—The Secretary of the Interior shall 

4 conduct an inventory and analysis of oil and natural gas 

5 resources beneath all of the waters of the United States 

6 Outer Continental Shelf (‘‘OCS’’). The inventory and 

7 analysis shall— 

8 (1) use available data on oil and gas resources 

9 in areas offshore of Mexico and Canada that will 

10 provide information on trends of oil and gas accu11 mulation in areas of the OCS; 

12 (2) use any available technology, except drilling, 

13 but including 3–D seismic technology to obtain accu14 rate resource estimates; 

15 (3) analyze how resource estimates in OCS 

16 areas have changed over time in regards to gath17 ering geological and geophysical data, initial explo18 ration, or full field development, including areas 

19 such as the deepwater and subsalt areas in the Gulf 

20 of Mexico; 

21 (4) estimate the effect that understated oil and 

22 gas resource inventories have on domestic energy in23 vestments; and 

24 (5) identify and explain how legislative, regu25 latory, and administrative programs or processes re26 strict or impede the development of identified re-
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1 sources and the extent that they affect domestic sup2 ply, such as moratoria, lease terms and conditions, 

3 operational stipulations and requirements, approval 

4 delays by the Federal government and coastal 

5 States, and local zoning restrictions for onshore 

6 processing facilities and pipeline landings. 

7 (b) REPORTS.—The Secretary of Interior shall sub8 mit a report to Congress on the inventory of estimates 

9 and the analysis of restrictions or impediments, together 

10 with any recommendations, within 6 months of the date 

11 of enactment of the section. The report shall be publicly 

12 available and updated at least every 5 years. 

13 SEC. 327. REVIEW AND DEMONSTRATION PROGRAM FOR 

14 OIL AND NATURAL GAS PRODUCTION. 

15 (a) REVIEW.— 

16 (1) IN GENERAL.—Not later than 18 months 

17 after the date of enactment of this Act, the Sec18 retary of the Interior, in consultation with the Sec19 retary of Energy (referred to in this section as the 

20 ‘‘Secretary’’), shall carry out a review of, and submit 

21 to Congress a report on opportunities to enhance 

22 production of oil and natural gas from public land 

23 and the outer Continental Shelf, and increase se24 questration of carbon dioxide through the provision 

25 of royalty or other production incentives to lessees 
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1 that inject carbon dioxide as a means of enhanced 

2 recovery. 

3 (2) COMPONENTS.—The Secretary of the Inte4 rior shall describe in the review and report under 

5 paragraph (1)— 

6 (A) eligibility requirements for incentives; 

7 (B) the appropriate level of royalty relief, 

8 if any; 

9 (C) other appropriate production incen10 tives, if any; 

11 (D) an estimate of the increased quantity 

12 of oil and gas production that could be achieved 

13 through implementation of those incentives; 

14 (E) an estimate of the quantity of carbon 

15 sequestration that could be achieved through 

16 implementation of those incentives; 

17 (F) practices (and the extent of the use of 

18 the practices) as of the date of enactment of 

19 this Act that rely on carbon dioxide injection 

20 for enhanced oil and gas recovery; and 

21 (G) any recommendations for implementa22 tion of royalty relief or other production incen23 tives, including— 

24 (i) the period of time during which 

25 those incentives should be available; and 
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1 (ii) any geographic or other limita2 tions that should apply to the incentives. 

3 (b) DEMONSTRATION PROGRAM.— 

4 (1) ESTABLISHMENT.— 

5 (A) IN GENERAL.—The Secretary shall es6 tablish a competitive grant program to provide 

7 grants to producers of oil and gas to carry out 

8 projects to inject carbon dioxide for the purpose 

9 of enhancing recovery of oil or natural gas while 

10 increasing the sequestration of carbon dioxide. 

11 (B) PROJECTS.—The demonstration pro12 gram shall provide for— 

13 (i) not more than 10 projects in the 

14 Willistin Basin in North Dakota and Mon15 tana; and 

16 (ii) 1 project in the Cook Inlet Basin 

17 in Alaska. 

18 (2) REQUIREMENTS.— 

19 (A) IN GENERAL.—The Secretary shall 

20 issue requirements relating to applications for 

21 grants under paragraph (1). 

22 (B) RULEMAKING.—The issuance of re23 quirements under subparagraph (A) shall not 

24 require a rulemaking. 
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1 (C) MINIMUM REQUIREMENTS.—At a min2 imum, the Secretary shall require under sub3 paragraph (A) that an application for a grant 

4 include— 

5 (i) a description of the project pro6 posed in the application; 

7 (ii) an estimate of the production in8 crease and the duration of the production 

9 increase from the project, as compared to 

10 conventional recovery techniques, including 

11 water flooding; 

12 (iii) an estimate of the carbon dioxide 

13 sequestered by project, over the life of the 

14 project; 

15 (iv) a plan to collect and disseminate 

16 data relating to each project to be funded 

17 by the grant; 

18 (v) a description of the means by 

19 which the project will be sustainable with20 out Federal assistance after the completion 

21 of the term of the grant; 

22 (vi) a complete description of the 

23 costs of the project, including acquisition, 

24 construction, operation, and maintenance 

25 costs over the expected life of the project; 
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1 (vii) a description of which costs of 

2 the project will be supported by Federal 

3 assistance under this section; and 

4 (viii) a description of any secondary 

5 or tertiary recovery efforts in the field and 

6 the efficacy of water flood recovery tech7 niques used. 

8 (3) PARTNERS.—An applicant for a grant 

9 under paragraph (1) may carry out a project under 

10 a pilot program in partnership with 1 or more other 

11 public or private entities. 

12 (4) SELECTION CRITERIA.—In evaluating appli13 cations under this subsection, the Secretary shall— 

14 (A) consider the previous experience with 

15 similar projects of each applicant; 

16 (B) give priority consideration to applica17 tions that— 

18 (i) are most likely to maximize pro19 duction of oil and gas in a cost-effective 

20 manner; 

21 (ii) sequester significant quantities of 

22 carbon dioxide from anthropogenic sources; 

23 (iii) demonstrate the greatest commit24 ment on the part of the applicant to ensure 

25 funding for the proposed project and the 
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1 greatest likelihood that the project will be 

2 maintained or expanded after Federal as3 sistance under this section is completed; 

4 and 

5 (iv) minimize any adverse environ6 mental effects from the project. 

7 (5) DEMONSTRATION PROGRAM REQUIRE8 MENTS.— 

9 (A) MAXIMUM AMOUNT.—The Secretary 

10 shall not provide more than $3,000,000 in Fed11 eral assistance under this subsection to any ap12 plicant. 

13 (B) COST SHARING.—The Secretary shall 

14 require cost-sharing in accordance with section 

15 1002. 

16 (C) PERIOD OF GRANTS.— 

17 (i) IN GENERAL.—A project funded by 

18 a grant under this subsection shall begin 

19 construction not later than 2 years after 

20 the date of provision of the grant, but in 

21 any case not later than December 31, 

22 2010. 

23 (ii) TERM.—The Secretary shall not 

24 provide grant funds to any applicant under 
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1 this subsection for a period of more than 

2 5 years. 

3 (6) TRANSFER OF INFORMATION AND KNOWL4 EDGE.—The Secretary shall establish mechanisms to 

5 ensure that the information and knowledge gained 

6 by participants in the program under this subsection 

7 are transferred among other participants and inter8 ested parties, including other applicants that sub9 mitted applications for a grant under this sub10 section. 

11 (7) SCHEDULE.— 

12 (A) PUBLICATION.—Not later than 180 

13 days after the date of enactment of this Act, 

14 the Secretary shall publish in the Federal Reg15 ister, and elsewhere, as appropriate, a request 

16 for applications to carry out projects under this 

17 subsection. 

18 (B) DATE FOR APPLICATIONS.—An appli19 cation for a grant under this subsection shall be 

20 submitted not later than 180 days after the 

21 date of publication of the request under sub22 paragraph (A). 

23 (C) SELECTION.—After the date by which 

24 applications for grants are required to be sub25 mitted under subparagraph (B), the Secretary, 
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1 in a timely manner, shall select, after peer re2 view and based on the criteria under paragraph 

3 (4), those projects to be awarded a grant under 

4 this subsection. 

5 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated such sums as are nec7 essary to carry out this section. 

8 Subtitle C—Access to Federal Land 

9 SEC. 341. FEDERAL ONSHORE OIL AND GAS LEASING PRAC10 TICES. 

11 (a) REVIEW OF ONSHORE OIL AND GAS LEASING

12 PRACTICES.—The Secretary of the Interior shall make the 

13 necessary arrangements with the National Academy of 

14 Public Administration to commission the Academy to per15 form a review of Federal onshore oil and gas leasing prac16 tices. The Secretary of the Interior shall conduct an inter17 nal review concurrent with the work of the National Acad18 emy of Public Administration. The reviews shall include 

19 the following: 

20 (1) The process by which Federal land man21 agers accept or reject an offer to lease, including the 

22 timeframes in which such offers are acted upon, and 

23 any recommendations for improving and expediting 

24 the process. 
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1 (2) The process for considering applications for 

2 permits to drill, including the timeframes in which 

3 such applications are considered, and any rec4 ommendations for improving and expediting the 

5 process. 

6 (3) The process for considering surface use 

7 plans of operation, including the timeframes in 

8 which such plans are considered, and any rec9 ommendations for improving and expediting the 

10 process. 

11 (4) The process for administrative appeal of de12 cisions or orders of officers or employees of the Bu13 reau of Land Management with respect to a Federal 

14 oil or gas lease, including the timeframes in which 

15 such appeals are heard and decided, and any rec16 ommendations for improving and expediting the 

17 process. 

18 (5) The process by which Federal land man19 agers identify stipulations to address site-specific 

20 concerns and conditions, including those relating to 

21 the environment and resource use conflicts, whether 

22 stipulations are effective in addressing resource val23 ues, and any recommendations for expediting and 

24 improving the identification and effectiveness of stip25 ulations. 
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1 (6) The process by which the Federal land 

2 management agencies coordinate planning and anal3 ysis with planning of Federal, State, and local agen4 cies having jurisdiction over adjacent areas and 

5 other land uses, and any recommendations for im6 proving and expediting the process. 

7 (7) The documentation provided to lease appli8 cants and lessees with respect to determinations to 

9 reject lease applications or to require modification of 

10 proposed surface use plans of operation and rec11 ommendations regarding improvement of such docu12 mentation to more clearly set forth the basis for the 

13 decision. 

14 (8) The adequacy of resources available to the 

15 Secretary of the Interior for administering the Fed16 eral onshore oil and gas leasing program. 

17 (9) Actions taken by the Secretary under sec18 tion 3 of Executive Order No. 13212 (42 U.S.C. 

19 13201 note). 

20 (10) Actions taken by, or plans of, the Sec21 retary to improve the Federal onshore oil and gas 

22 leasing program. 

23 (b) REPORT.—The Secretary of the Interior and the 

24 National Academy of Public Administration shall report 

25 to the Committee on Resources of the House of Represent-
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1 atives and to the Committee on Energy and Natural Re2 sources of the Senate not later than 18 months after the 

3 date of the enactment of this Act, summarizing the find4 ings of their respective reviews undertaken pursuant to 

5 this section and making recommendations with respect to 

6 improvements in the Federal onshore oil and gas leasing 

7 program. 

8 SEC. 342. MANAGEMENT OF FEDERAL OIL AND GAS LEAS9 ING PROGRAMS. 

10 (a) TIMELY ACTION ON LEASES AND PERMITS.— 

11 (1) SECRETARY OF THE INTERIOR.—To ensure 

12 timely action on oil and gas leases and applications 

13 for permits to drill on land otherwise available for 

14 leasing, the Secretary of the Interior (referred to in 

15 this section as the ‘‘Secretary’’) shall— 

16 (A) ensure expeditious compliance with 

17 section 102(2)(C) of the National Environ18 mental Policy Act of 1969 (42 U.S.C. 

19 4332(2)(C)) and any other applicable environ20 mental and cultural resources laws; 

21 (B) improve consultation and coordination 

22 with the States and the public; and 

23 (C) improve the collection, storage, and re24 trieval of information relating to the oil and gas 

25 leasing activities. 
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1 (2) SECRETARY OF AGRICULTURE.—To ensure 

2 timely action on oil and gas lease applications for 

3 permits to drill on land otherwise available for leas4 ing, the Secretary of Agriculture shall— 

5 (A) ensure expeditious compliance with all 

6 applicable environmental and cultural resources 

7 laws; and 

8 (B) improve the collection, storage, and re9 trieval of information relating to the oil and gas 

10 leasing activities. 

11 (b) BEST MANAGEMENT PRACTICES.— 

12 (1) IN GENERAL.—Not later than 18 months 

13 after the date of enactment of this Act, the Sec14 retary shall develop and implement best manage15 ment practices to— 

16 (A) improve the administration of the on17 shore oil and gas leasing program under the 

18 Mineral Leasing Act (30 U.S.C. 181 et seq.); 

19 and 

20 (B) ensure timely action on oil and gas 

21 leases and applications for permits to drill on 

22 land otherwise available for leasing. 

23 (2) REGULATIONS.—Not later than 180 days 

24 after the development of the best management prac25 tices under paragraph (1), the Secretary shall pub-
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1 lish, for public comment, proposed regulations that 

2 set forth specific timeframes for processing leases 

3 and applications in accordance with the best man4 agement practices, including deadlines for— 

5 (A) approving or disapproving— 

6 (i) resource management plans and 

7 related documents; 

8 (ii) lease applications; 

9 (iii) applications for permits to drill; 

10 and 

11 (iv) surface use plans; and 

12 (B) related administrative appeals. 

13 (c) IMPROVED ENFORCEMENT.—The Secretary and 

14 the Secretary Agriculture shall improve inspection and en15 forcement of oil and gas activities, including enforcement 

16 of terms and conditions in permits to drill on land under 

17 the jurisdiction of the Secretary and the Secretary of Agri18 culture, respectively. 

19 (d) AUTHORIZATION OF APPROPRIATIONS.—In addi20 tion to amounts made available to carry out activities re21 lating to oil and gas leasing on public land administered 

22 by the Secretary and National Forest System land admin23 istered by the Secretary of Agriculture, there are author24 ized to be appropriated for each of fiscal years 2006 

25 through 2010— 
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1 (1) to the Secretary, acting through the Direc2 tor of the Bureau of Land Management— 

3 (A) $40,000,000 to carry out subsections 

4 (a)(1) and (b); and 

5 (B) $20,000,000 to carry out subsection 

6 (c); 

7 (2) to the Secretary, acting through the Direc8 tor of the United States Fish and Wildlife Service, 

9 $5,000,000 to carry out subsection (a)(1); and 

10 (3) to the Secretary of Agriculture, acting 

11 through the Chief of the Forest Service, $5,000,000 

12 to carry out subsections (a)(2) and (c). 

13 SEC. 343. CONSULTATION REGARDING OIL AND GAS LEAS14 ING ON PUBLIC LAND. 

15 (a) IN GENERAL.—Not later than 180 days after the 

16 date of enactment of this Act, the Secretary of the Interior 

17 and the Secretary of Agriculture shall enter into a memo18 randum of understanding regarding oil and gas leasing 

19 on— 

20 (1) public land under the jurisdiction of the 

21 Secretary of the Interior; and 

22 (2) National Forest System land under the ju23 risdiction of the Secretary of Agriculture. 

24 (b) CONTENTS.—The memorandum of understanding 

25 shall include provisions that— 
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1 (1) establish administrative procedures and 

2 lines of authority that ensure timely processing of— 

3 (A) oil and gas lease applications; 

4 (B) surface use plans of operation, includ5 ing steps for processing surface use plans; and 

6 (C) applications for permits to drill, includ7 ing applications for permits to drill consistent 

8 with applicable timelines; 

9 (2) eliminate duplication of effort by providing 

10 for coordination of planning and environmental com11 pliance efforts; 

12 (3) ensure that lease stipulations are— 

13 (A) applied consistently; 

14 (B) coordinated between agencies; and 

15 (C) only as restrictive as necessary to pro16 tect the resource for which the stipulations are 

17 applied; 

18 (4) establish a joint data retrieval system that 

19 is capable of— 

20 (A) tracking applications and formal re21 quests made in accordance with procedures of 

22 the Federal onshore oil and gas leasing pro23 gram; and 

24 (B) providing information regarding the 

25 status of the applications and requests within 
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1 the Department of the Interior and the Depart2 ment of Agriculture; and 

3 (5) establish a joint geographic information sys4 tem mapping system for use in— 

5 (A) tracking surface resource values to aid 

6 in resource management; and 

7 (B) processing surface use plans of oper8 ation and applications for permits to drill. 

9 SEC. 344. PILOT PROJECT TO IMPROVE FEDERAL PERMIT 

10 COORDINATION. 

11 (a) ESTABLISHMENT.—The Secretary of the Interior 

12 (referred to in this section as the ‘‘Secretary’’) shall estab13 lish a Federal Permit Streamlining Pilot Project (referred 

14 to in this section as the ‘‘Pilot Project’’). 

15 (b) MEMORANDUM OF UNDERSTANDING.— 

16 (1) IN GENERAL.—Not later than 90 days after 

17 the date of enactment of this Act, the Secretary 

18 shall enter into a memorandum of understanding for 

19 purposes of this section with— 

20 (A) the Secretary of Agriculture; 

21 (B) the Administrator of the Environ22 mental Protection Agency; and 

23 (C) the Chief of Engineers. 

24 (2) STATE PARTICIPATION.—The Secretary 

25 may request that the Governors of Wyoming, Mon-
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1 tana, Colorado, Utah, and New Mexico be signato2 ries to the memorandum of understanding. 

3 (c) DESIGNATION OF QUALIFIED STAFF.— 

4 (1) IN GENERAL.—Not later than 30 days after 

5 the date of the signing of the memorandum of un6 derstanding under subsection (b), all Federal signa7 tory parties shall, if appropriate, assign to each of 

8 the field offices identified in subsection (d) an em9 ployee who has expertise in the regulatory issues re10 lating to the office in which the employee is em11 ployed, including, as applicable, particular expertise 

12 in— 

13 (A) the consultations and the preparation 

14 of biological opinions under section 7 of the En15 dangered Species Act of 1973 (16 U.S.C. 

16 1536); 

17 (B) permits under section 404 of Federal 

18 Water Pollution Control Act (33 U.S.C. 1344); 

19 (C) regulatory matters under the Clean Air 

20 Act (42 U.S.C. 7401 et seq.); 

21 (D) planning under the National Forest 

22 Management Act of 1976 (16 U.S.C. 472a et 

23 seq.); and 
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1 (E) the preparation of analyses under the 

2 National Environmental Policy Act of 1969 (42 

3 U.S.C. 4321 et seq.). 

4 (2) DUTIES.—Each employee assigned under 

5 paragraph (1) shall— 

6 (A) not later than 90 days after the date 

7 of assignment, report to the Bureau of Land 

8 Management Field Managers in the office to 

9 which the employee is assigned; 

10 (B) be responsible for all issues relating to 

11 the jurisdiction of the home office or agency of 

12 the employee; and 

13 (C) participate as part of the team of per14 sonnel working on proposed energy projects, 

15 planning, and environmental analyses. 

16 (d) FIELD OFFICES.—The following Bureau of Land 

17 Management Field Offices shall serve as the Pilot Project 

18 offices: 

19 (1) Rawlins, Wyoming. 

20 (2) Buffalo, Wyoming. 

21 (3) Miles City, Montana 

22 (4) Farmington, New Mexico. 

23 (5) Carlsbad, New Mexico. 

24 (6) Grand Junction/Glenwood Springs, Colo25 rado. 
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1 (7) Vernal, Utah. 

2 (e) REPORTS.—Not later than 3 years after the date 

3 of enactment of this Act, the Secretary shall submit to 

4 Congress a report that— 

5 (1) outlines the results of the Pilot Project to 

6 date; and 

7 (2) makes a recommendation to the President 

8 regarding whether the Pilot Project should be imple9 mented throughout the United States. 

10 (f) ADDITIONAL PERSONNEL.—The Secretary shall 

11 assign to each field office identified in subsection (d) any 

12 additional personnel that are necessary to ensure the ef13 fective implementation of— 

14 (1) the Pilot Project; and 

15 (2) other programs administered by the field of16 fices, including inspection and enforcement relating 

17 to energy development on Federal land, in accord18 ance with the multiple use mandate of the Federal 

19 Land Policy and Management Act of 1976 (43 

20 U.S.C. 1701 et seq). 

21 (g) AUTHORIZATION OF APPROPRIATIONS.— 

22 (1) IN GENERAL.—There are authorized to be 

23 appropriated to the Secretary such sums as are nec24 essary to carry out this section for each of fiscal 

25 years 2006 through 2010. 
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1 (2) TRANSFER OF FUNDS.—For the purposes 

2 of coordination and processing of oil and gas use au3 thorizations on Federal land under the administra4 tion of the Pilot Project offices identified in sub5 section (d), the Secretary may authorize the expendi6 ture or transfer of such funds as are necessary to— 

7 (A) the United States Fish and Wildlife 

8 Service; 

9 (B) the Bureau of Indian Affairs; 

10 (C) the Forest Service; 

11 (D) the Environmental Protection Agency; 

12 (E) the Corps of Engineers; and 

13 (F) the States of Wyoming, Montana, Col14 orado, Utah, and New Mexico. 

15 (h) SAVINGS PROVISION.—Nothing in this section af16 fects— 

17 (1) the operation of any Federal or State law; 

18 or 

19 (2) any delegation of authority made by the 

20 head of a Federal agency whose employees are par21 ticipating in the Pilot Project. 

22 SEC. 345. ENERGY FACILITY RIGHTS-OF-WAYS AND COR23 RIDORS ON FEDERAL LAND. 

24 (a) DEFINITIONS.—In this section: 
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1 (1) CORRIDOR.—In this section and section 503 

2 of the Federal Land Policy and Management Act of 

3 1976 (43 U.S.C. 1763), the term ‘‘corridor’’ 

4 means— 

5 (A) a linear strip of land— 

6 (i) with a width determined with con7 sideration given to technological, environ8 mental, and topographical factors; and 

9 (ii) that contains, or may in the fu10 ture contain, 1 or more utility facilities; 

11 (B) a land use designation that is estab12 lished— 

13 (i) by law; 

14 (ii) by order of the head of a Federal 

15 agency; 

16 (iii) through the land use planning 

17 process; or 

18 (iv) by other management decision; 

19 and 

20 (C) a designation made for the purpose of 

21 establishing the preferred location of a compat22 ible utility facility. 

23 (2) FEDERAL AUTHORIZATION.— 

24 (A) IN GENERAL.—The term ‘‘Federal au25 thorization’’ means any authorization required 
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1 under Federal law in order to site a utility facil2 ity. 

3 (B) INCLUSIONS.—The term ‘‘Federal au4 thorization’’ includes such permits, special use 

5 authorizations, certifications, opinions, or other 

6 approvals as may be required, that are issued 

7 by a Federal agency. 

8 (3) FEDERAL LAND.— 

9 (A) IN GENERAL.—The term ‘‘Federal 

10 land’’ means all land owned by the United 

11 States. 

12 (B) EXCLUSIONS.—The term ‘‘Federal 

13 land’’ does not include land— 

14 (i) within the National Park System; 

15 (ii) within the National Wilderness 

16 Preservation System; 

17 (iii) designated as a National Monu18 ment; 

19 (iv) held in trust for an Indian or In20 dian tribe; or 

21 (v) on the outer Continental Shelf. 

22 (4) UTILITY CORRIDOR.—The term ‘‘utility cor23 ridor’’ means any linear strip of land across Federal 

24 land referred to in subsection (b) of approved width, 
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1 but limited for use by a utility facility by techno2 logical, environmental, or topographical factors. 

3 (5) UTILITY FACILITY.—The term ‘‘utility facil4 ity’’ means any privately-, publicly-, or cooperatively5 owned line, facility, or system— 

6 (A) for the transportation of— 

7 (i) oil or natural gas, synthetic liquid 

8 or gaseous fuel, or any refined product 

9 produced from any of those materials; or 

10 (ii) products in support of production, 

11 or for storage or terminal facilities in con12 nection with production; or 

13 (B) for the generation, transmission, or 

14 distribution of electric energy. 

15 (b) UTILITY CORRIDORS.— 

16 (1) IN GENERAL.—Not later than 2 years after 

17 the document described in subsection (c)(3) is com18 pleted, the Secretary of the Interior, with respect to 

19 public lands (as defined in section 103(e) of the 

20 Federal Land Policy and Management Act of 1976 

21 (43 U.S.C. 1702(e)), and the Secretary of Agri22 culture, with respect to National Forest System 

23 land, shall designate utility corridors pursuant to— 

24 (A) section 503 of the Federal Land Policy 

25 and Management Act (43 U.S.C. 1763) in the 
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1 11 contiguous Western States (as identified in 

2 section 103(o) of that Act (43 U.S.C. 

3 1702(o))); and 

4 (B) relevant departmental and agency land 

5 use and resource management plans or equiva6 lent plans. 

7 (2) COORDINATION.—The Secretary shall co8 ordinate with affected Federal agencies to jointly— 

9 (A) identify potential utility corridors on 

10 Federal land in States not described in para11 graph (1)(A); and 

12 (B) develop a schedule for the designation, 

13 environmental review, and incorporation of the 

14 utility corridors into relevant departmental and 

15 agency land use and resource management 

16 plans or equivalent plans. 

17 (3) SPECIFICATIONS OF CORRIDOR.—A corridor 

18 designated under this section shall specify the cen19 terline, width, and compatible uses of the corridor. 

20 (c) FEDERAL PERMIT COORDINATION.— 

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

22 into a memorandum of understanding with the Sec23 retary of the Interior, the Secretary of Agriculture, 

24 and the Secretary of Defense for the purpose of co25 ordinating all applicable Federal authorizations and 
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1 environmental reviews relating to a proposed or ex2 isting utility facility. 

3 (2) ADDITIONAL ENTITIES.—To the maximum 

4 extent practicable under applicable law, the Sec5 retary shall coordinate the process developed 

6 through the memorandum of understanding under 

7 paragraph (1) with any Indian tribes, multistate en8 tities, and State agencies that are responsible for 

9 conducting any separate permitting and environ10 mental reviews of the affected utility facility to en11 sure timely review and permit decisions. 

12 (3) CONTENTS OF MOU.—The memorandum of 

13 understanding under paragraph (1) shall provide 

14 for— 

15 (A) coordination, among affected Federal 

16 agencies, to ensure that the necessary Federal 

17 authorizations— 

18 (i) are conducted concurrently with 

19 applicable State siting processes; and 

20 (ii) are considered within a specific 

21 time frame identified within the memo22 randum of understanding; 

23 (B) an agreement among the affected Fed24 eral agencies to prepare a programmatic envi25 ronmental review document to be used as the 
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1 underlying basis for all Federal authorization 

2 decisions; and 

3 (C) a process to expedite applications to 

4 construct or modify utility facilities within util5 ity corridors. 

6 SEC. 346. OIL SHALE LEASING. 

7 (a) DECLARATION OF POLICY.—Congress declares 

8 that it is the policy of the United States that— 

9 (1) United States oil shale and oil sands are 

10 strategically important domestic resources that 

11 should be developed through methods that help re12 duce the growing dependence of the United States 

13 on politically and economically unstable sources of 

14 foreign oil imports; 

15 (2) the development of oil shale and oil sands, 

16 for research and commercial development, should be 

17 conducted in an environmentally sound and economi18 cally feasible manner; and 

19 (3) development described in paragraph (2) 

20 should occur at a deliberate pace, with an emphasis 

21 on sustainability, to benefit the United States while 

22 taking into account affected States and commu23 nities. 

24 (b) LEASING FOR RESEARCH AND DEVELOPMENT.— 
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1 (1) IN GENERAL.—In accordance with section 

2 21 of the Mineral Leasing Act (30 U.S.C. 241) and 

3 any other applicable law, except as provided in this 

4 section, not later than 1 year after the date of enact5 ment of this Act, from land otherwise available for 

6 leasing, the Secretary of the Interior (referred to in 

7 this section as the ‘‘Secretary’’) shall, for a period 

8 determined by the Secretary, make available for 

9 leasing such land as the Secretary considers to be 

10 necessary to conduct research and development ac11 tivities with respect to innovative technologies for 

12 the recovery of shale oil from oil shale resources on 

13 public land. 

14 (2) APPLICATION.—The Secretary may offer to 

15 lease the land to persons that submit an application 

16 for the lease, if the Secretary determines that there 

17 is no competitive interest in the land. 

18 (3) ADMINISTRATION.—In carrying out this 

19 subsection, the Secretary shall— 

20 (A) provide for environmentally sound re21 search and development of oil shale; 

22 (B) provide for an appropriate return to 

23 the public, as determined by the Secretary; 

24 (C) before carrying out any activity that 

25 will disturb the surface of land, provide for an 
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1 adequate bond, surety, or other financial ar2 rangement to ensure reclamation; 

3 (D) provide for a primary lease term of 10 

4 years, after which the lease term may be ex5 tended if the Secretary determines that diligent 

6 research and development activities are occur7 ring on the land leased; 

8 (E) require the owner or operator of a 

9 project under this subsection, within such pe10 riod as the Secretary may determine— 

11 (i) to submit a plan of operations; 

12 (ii) to develop an environmental pro13 tection plan; and 

14 (iii) to undertake diligent research 

15 and development activities; 

16 (F) ensure that leases under this section 

17 are not larger than necessary to conduct re18 search and development activities under an ap19 plication under paragraph (2); 

20 (G) provide for consultation with affected 

21 State and local governments; and 

22 (H) provide for such requirements as the 

23 Secretary determines to be in the public inter24 est. 
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1 (4) MONEYS RECEIVED.—Any moneys received 

2 from a leasing activity under this subsection shall be 

3 paid in accordance with section 35 of the Mineral 

4 Leasing Act (30 U.S.C. 191). 

5 (c) PROGRAMMATIC ENVIRONMENTAL IMPACT

6 STATEMENT.—Not later than 18 months after the date 

7 of enactment of this Act, in accordance with section 

8 102(2)(C) of the National Environmental Policy Act of 

9 1969 (42 U.S.C. 4332(2)(C)), the Secretary shall com10 plete a programmatic environmental impact statement 

11 that analyzes potential leasing for commercial develop12 ment of oil shale resources on public land. 

13 (d) ANALYSIS OF POTENTIAL LEASING PROGRAM.— 

14 (1) IN GENERAL.—Not later than 18 months 

15 after the date of enactment of this Act, the Sec16 retary shall submit to Congress a report (including 

17 recommendations) analyzing a potential leasing pro18 gram for the commercial development of oil shale on 

19 public land. 

20 (2) INCLUSIONS.—The report under paragraph 

21 (1) shall include— 

22 (A) an analysis of technologies and re23 search and development programs for the pro24 duction of oil and other materials from oil shale 
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1 and tar sands in existence on the date on which 

2 the report is prepared; 

3 (B) an analysis of— 

4 (i) whether leases under the program 

5 should be issued on a competitive basis; 

6 (ii) the term of the leases; 

7 (iii) the maximum size of the leases; 

8 (iv) the use and distribution of bonus 

9 bid lease payments; 

10 (v) the royalty rate to be applied, in11 cluding whether a sliding scale royalty rate 

12 should be used; 

13 (vi) whether an opportunity should be 

14 provided to convert research and develop15 ment leases into leases for commercial de16 velopment, including the terms and condi17 tions that should apply to the conversion; 

18 (vii) the maximum number of leases 

19 and maximum acreage to be leased under 

20 the leasing program to an individual; and 

21 (vii) any infrastructure required to 

22 support oil shale development in industry 

23 and communities; and 

24 (C) an analysis, developed in conjunction 

25 with the appropriate State water resource agen-
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1 cies, of the demand for, and availability of, 

2 water with respect to the development of oil 

3 shale. 

4 (3) PUBLIC PARTICIPATION.—In preparing the 

5 report under this subsection, the Secretary shall pro6 vide notice to, and solicit comment from— 

7 (A) the public; 

8 (B) representatives of local governments; 

9 (C) representatives of industry; and 

10 (D) other interested parties. 

11 (4) PARTICIPATION BY CERTAIN STATES.—In 

12 preparing the report under this subsection, the Sec13 retary shall— 

14 (A) provide notice to, and solicit comment 

15 from, the Governors of the States of Colorado, 

16 Utah, and Wyoming; and 

17 (B) incorporate into the report submitted 

18 to Congress under paragraph (1) any response 

19 of the Secretary to those comments. 

20 (e) NATIONAL OIL SHALE ASSESSMENT.— 

21 (1) ASSESSMENT.— 

22 (A) IN GENERAL.—The Secretary shall 

23 carry out a national assessment of oil shale re24 sources for the purposes of evaluating and map-
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1 ping oil shale deposits, in the geographic areas 

2 described in subparagraph (B). 

3 (B) GEOGRAPHIC AREAS.—The geographic 

4 areas referred to in subparagraph (A), listed in 

5 the order in which the Secretary shall assign 

6 priority, are— 

7 (i) the Green River Region of the 

8 States of Colorado, Utah, and Wyoming; 

9 (ii) the Devonian oil shales of the 

10 eastern United States; and 

11 (iii) any remaining area in the central 

12 and western United States (including the 

13 State of Alaska) that contains oil shale, as 

14 determined by the Secretary. 

15 (2) USE OF STATE SURVEYS AND UNIVER16 SITIES.—In carrying out the assessment under para17 graph (1), the Secretary may request assistance 

18 from any State-administered geological survey or 

19 university. 

20 (f) STATE WATER RIGHTS.—Nothing in this section 

21 preempts or affects any State water law or interstate com22 pact relating to water. 

23 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

24 are authorized to be appropriated such sums as are nec25 essary to carry out this section. 
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1 Subtitle D—Coastal Programs 

2 SEC. 371. COASTAL IMPACT ASSISTANCE PROGRAM. 

3 Section 31 of the Outer Continental Shelf Lands Act 

4 (43 U.S.C. 1356a) is amended to read as follows: 

5 ‘‘SEC. 31. COASTAL IMPACT ASSISTANCE PROGRAM. 

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

7 ‘‘(1) COASTAL POLITICAL SUBDIVISION.—The 

8 term ‘coastal political subdivision’ means a political 

9 subdivision of a coastal State any part of which po10 litical subdivision is— 

11 ‘‘(A) within the coastal zone (as defined in 

12 section 304 of the Coastal Zone Management 

13 Act of 1972 (16 U.S.C. 1453)) of the coastal 

14 State; and 

15 ‘‘(B) not more than 200 miles from the ge16 ographic center of any leased tract. 

17 ‘‘(2) COASTAL POPULATION.—The term ‘coastal 

18 population’ means the population, as determined by 

19 the most recent official data of the Census Bureau, 

20 of each political subdivision any part of which lies 

21 within the designated coastal boundary of a State 

22 (as defined in a State’s coastal zone management 

23 program under the Coastal Zone Management Act of 

24 1972 (16 U.S.C. 1451 et seq.)). 
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1 ‘‘(3) COASTAL STATE.—The term ‘coastal 

2 State’ has the meaning given the term in section 

3 304 of the Coastal Zone Management Act of 1972 

4 (16 U.S.C. 1453). 

5 ‘‘(4) COASTLINE.—The term ‘coastline’ has the 

6 meaning given the term ‘coast line’ in section 2 of 

7 the Submerged Lands Act (43 U.S.C. 1301). 

8 ‘‘(5) DISTANCE.—The term ‘distance’ means 

9 the minimum great circle distance, measured in stat10 ute miles. 

11 ‘‘(6) LEASED TRACT.—The term ‘leased tract’ 

12 means a tract that is subject to a lease under section 

13 6 or 8 for the purpose of drilling for, developing, 

14 and producing oil or natural gas resources. 

15 ‘‘(7) LEASING MORATORIA.—The term ‘leasing 

16 moratoria’ means the prohibitions on preleasing, 

17 leasing, and related activities on any geographic area 

18 of the outer Continental Shelf as contained in sec19 tions 107 through 109 of division E of the Consoli20 dated Appropriations Act, 2005 (Public Law 108– 

21 447; 118 Stat. 3063). 

22 ‘‘(8) POLITICAL SUBDIVISION.—The term ‘polit23 ical subdivision’ means the local political jurisdiction 

24 immediately below the level of State government, in25 cluding counties, parishes, and boroughs. 
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1 ‘‘(9) PRODUCING STATE.— 

2 ‘‘(A) IN GENERAL.—The term ‘producing 

3 State’ means a coastal State that has a coastal 

4 seaward boundary within 200 miles of the geo5 graphic center of a leased tract within any area 

6 of the outer Continental Shelf. 

7 ‘‘(B) EXCLUSION.—The term ‘producing 

8 State’ does not include a producing State, a 

9 majority of the coastline of which is subject to 

10 leasing moratoria. 

11 ‘‘(10) QUALIFIED OUTER CONTINENTAL SHELF

12 REVENUES.— 

13 ‘‘(A) IN GENERAL.—The term ‘qualified 

14 Outer Continental Shelf revenues’ means all 

15 amounts received by the United States from 

16 each leased tract or portion of a leased tract— 

17 ‘‘(i) lying— 

18 ‘‘(I) seaward of the zone covered 

19 by section 8(g); or 

20 ‘‘(II) within that zone, but to 

21 which section 8(g) does not apply; and 

22 ‘‘(ii) the geographic center of which 

23 lies within a distance of 200 miles from 

24 any part of the coastline of any coastal 

25 State. 
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1 ‘‘(B) INCLUSIONS.—The term ‘qualified 

2 Outer Continental Shelf revenues’ includes 

3 bonus bids, rents, royalties (including payments 

4 for royalty taken in kind and sold), net profit 

5 share payments, and related late-payment inter6 est from natural gas and oil leases issued under 

7 this Act. 

8 ‘‘(C) EXCLUSION.—The term ‘qualified 

9 Outer Continental Shelf revenues’ does not in10 clude any revenues from a leased tract or por11 tion of a leased tract that is located in a geo12 graphic area subject to a leasing moratorium on 

13 January 1, 2005. 

14 ‘‘(b) PAYMENTS TO PRODUCING STATES AND COAST15 AL POLITICAL SUBDIVISIONS.— 

16 ‘‘(1) IN GENERAL.—From revenues deposited 

17 under section 9, there is authorized to be appro18 priated to the Secretary to disburse funds to pro19 ducing States and coastal political subdivisions in 

20 accordance with this section $500,000,000 for each 

21 of fiscal years 2006 through 2010. 

22 ‘‘(2) DISBURSEMENT.—In each fiscal year, the 

23 Secretary shall, subject to appropriations, disburse 

24 to each producing State for which the Secretary has 

25 approved a plan under subsection (c), and to coastal 
301 

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1 political subdivisions under paragraph (5), such 

2 funds as are allocated to the producing State or 

3 coastal political subdivision, respectively, under this 

4 section for the fiscal year. 

5 ‘‘(3) TRANSFER OF AMOUNTS.— 

6 ‘‘(A) IN GENERAL.—From qualified outer 

7 Continental Shelf revenues deposited in the 

8 Treasury under this Act for a fiscal year, sub9 ject to appropriations, the Secretary of the 

10 Treasury shall transfer to the Secretary to pro11 vide disbursements to producing States and 

12 coastal political subdivisions under this section 

13 $500,000,000 for each of fiscal years 2006 

14 through 2010. 

15 ‘‘(B) DISBURSEMENT.—For each fiscal 

16 year, the Secretary shall, subject to the avail17 ability of appropriations under subparagraph 

18 (A), disburse to each producing State for which 

19 the Secretary has an approved plan under para20 graph (4), and to coastal political subdivisions 

21 under paragraph (5), the funds allocated to the 

22 producing State or coastal political subdivision 

23 under this section for the fiscal year. 

24 ‘‘(4) ALLOCATION AMONG PRODUCING

25 STATES.— 
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1 ‘‘(A) IN GENERAL.—Except as provided in 

2 subparagraph (C) and subject to subparagraph 

3 (D), the amounts available under paragraph (1) 

4 shall be allocated to each producing State based 

5 on the ratio that— 

6 ‘‘(i) the amount of qualified outer 

7 Continental Shelf revenues generated off 

8 the coastline of the producing State; bears 

9 to 

10 ‘‘(ii) the amount of qualified outer 

11 Continental Shelf revenues generated off 

12 the coastline of all producing States. 

13 ‘‘(B) AMOUNT OF OUTER CONTINENTAL

14 SHELF REVENUES.—For purposes of subpara15 graph (A)— 

16 ‘‘(i) the amount of qualified outer 

17 Continental Shelf revenues for each of fis18 cal years 2006 through 2008 shall be de19 termined using qualified outer Continental 

20 Shelf revenues received for fiscal year 

21 2005; and 

22 ‘‘(ii) the amount of qualified outer 

23 Continental Shelf revenues for each of fis24 cal years 2009 through 2011 shall be de25 termined using qualified outer Continental 
303 

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1 Shelf revenues received for fiscal year 

2 2008. 

3 ‘‘(C) MULTIPLE PRODUCING STATES.—In 

4 a case in which more than 1 producing State is 

5 located within 200 miles of any portion of a 

6 leased tract, the amount allocated to each pro7 ducing State for the leased tract shall be in8 versely proportional to the distance between— 

9 ‘‘(i) the nearest point on the coastline 

10 of the producing State; and 

11 ‘‘(ii) the geographic center of the 

12 leased tract. 

13 ‘‘(D) MINIMUM ALLOCATION.—The 

14 amount allocated to a producing State under 

15 subparagraph (A) shall be at least 1 percent of 

16 the amounts available under paragraph (1). 

17 ‘‘(5) PAYMENTS TO COASTAL POLITICAL SUB18 DIVISIONS.— 

19 ‘‘(A) IN GENERAL.—The Secretary shall 

20 pay 35 percent of the amount allocated under 

21 paragraph (3) to the coastal political subdivi22 sions in the producing State. 

23 ‘‘(B) FORMULA.—Of the amount paid by 

24 the Secretary to coastal political subdivisions 

25 under subparagraph (A)— 
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1 ‘‘(i) 25 percent shall be allocated to 

2 each coastal political subdivision in the 

3 proportion that— 

4 ‘‘(I) the coastal population of the 

5 coastal political subdivision; bears to 

6 ‘‘(II) the coastal population of all 

7 coastal political subdivisions in the 

8 producing State; 

9 ‘‘(ii) 25 percent shall be allocated to 

10 each coastal political subdivision in the 

11 proportion that— 

12 ‘‘(I) the number of miles of 

13 coastline of the coastal political sub14 division; bears to 

15 ‘‘(II) the number of miles of 

16 coastline of all coastal political sub17 divisions in the producing State; and 

18 ‘‘(iii) 50 percent shall be allocated in 

19 amounts that are inversely proportional to 

20 the respective distances between the points 

21 in each coastal political subdivision that 

22 are closest to the geographic center of each 

23 leased tract, as determined by the Sec24 retary. 
305 

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1 ‘‘(C) EXCEPTION FOR THE STATE OF LOU2 ISIANA.—For the purposes of subparagraph 

3 (B)(ii), the coastline for coastal political sub4 divisions in the State of Louisiana without a 

5 coastline shall be the average length of the 

6 coastline of all coastal political subdivisions 

7 with a coastline in the State of Louisiana. 

8 ‘‘(D) EXCEPTION FOR THE STATE OF

9 ALASKA.—For the purposes of carrying out 

10 subparagraph (B)(iii) in the State of Alaska, 

11 the amounts allocated shall be divided equally 

12 among the 2 coastal political subdivisions that 

13 are closest to the geographic center of a leased 

14 tract. 

15 ‘‘(E) EXCLUSION OF CERTAIN LEASED

16 TRACTS.—For purposes of subparagraph 

17 (B)(iii), a leased tract or portion of a leased 

18 tract shall be excluded if the tract or portion of 

19 a leased tract is located in a geographic area 

20 subject to a leasing moratorium on January 1, 

21 2005. 

22 ‘‘(6) NO APPROVED PLAN.— 

23 ‘‘(A) IN GENERAL.—Subject to subpara24 graph (B) and except as provided in subpara25 graph (C), in a case in which any amount allo-
306 

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1 cated to a producing State or coastal political 

2 subdivision under paragraph (4) or (5) is not 

3 disbursed because the producing State does not 

4 have in effect a plan that has been approved by 

5 the Secretary under subsection (c), the Sec6 retary shall allocate the undisbursed amount 

7 equally among all other producing States. 

8 ‘‘(B) RETENTION OF ALLOCATION.—The 

9 Secretary shall hold in escrow an undisbursed 

10 amount described in subparagraph (A) until 

11 such date as the final appeal regarding the dis12 approval of a plan submitted under subsection 

13 (c) is decided. 

14 ‘‘(C) WAIVER.—The Secretary may waive 

15 subparagraph (A) with respect to an allocated 

16 share of a producing State and hold the allo17 cable share in escrow if the Secretary deter18 mines that the producing State is making a 

19 good faith effort to develop and submit, or up20 date, a plan in accordance with subsection (c). 

21 ‘‘(c) COASTAL IMPACT ASSISTANCE PLAN.— 

22 ‘‘(1) SUBMISSION OF STATE PLANS.— 

23 ‘‘(A) IN GENERAL.—Not later than July 1, 

24 2008, the Governor of a producing State shall 
307 

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1 submit to the Secretary a coastal impact assist2 ance plan. 

3 ‘‘(B) PUBLIC PARTICIPATION.—In carrying 

4 out subparagraph (A), the Governor shall solicit 

5 local input and provide for public participation 

6 in the development of the plan. 

7 ‘‘(2) APPROVAL.— 

8 ‘‘(A) IN GENERAL.—The Secretary shall 

9 approve a plan of a producing State submitted 

10 under paragraph (1) before disbursing any 

11 amount to the producing State, or to a coastal 

12 political subdivision located in the producing 

13 State, under this section. 

14 ‘‘(B) COMPONENTS.—The Secretary shall 

15 approve a plan submitted under paragraph (1) 

16 if— 

17 ‘‘(i) the Secretary determines that the 

18 plan is consistent with the uses described 

19 in subsection (d); and 

20 ‘‘(ii) the plan contains— 

21 ‘‘(I) the name of the State agen22 cy that will have the authority to rep23 resent and act on behalf of the pro24 ducing State in dealing with the Sec25 retary for purposes of this section; 
308 

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1 ‘‘(II) a program for the imple2 mentation of the plan that describes 

3 how the amounts provided under this 

4 section to the producing State will be 

5 used; 

6 ‘‘(III) for each coastal political 

7 subdivision that receives an amount 

8 under this section— 

9 ‘‘(aa) the name of a contact 

10 person; and 

11 ‘‘(bb) a description of how 

12 the coastal political subdivision 

13 will use amounts provided under 

14 this section; 

15 ‘‘(IV) a certification by the Gov16 ernor that ample opportunity has been 

17 provided for public participation in 

18 the development and revision of the 

19 plan; and 

20 ‘‘(V) a description of measures 

21 that will be taken to determine the 

22 availability of assistance from other 

23 relevant Federal resources and pro24 grams. 
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1 ‘‘(3) AMENDMENT.—Any amendment to a plan 

2 submitted under paragraph (1) shall be— 

3 ‘‘(A) developed in accordance with this 

4 subsection; and 

5 ‘‘(B) submitted to the Secretary for ap6 proval or disapproval under paragraph (4). 

7 ‘‘(4) PROCEDURE.— 

8 ‘‘(A) IN GENERAL.—Except as provided in 

9 subparagraph (B), not later than 90 days after 

10 the date on which a plan or amendment to a 

11 plan is submitted under paragraph (1) or (3), 

12 the Secretary shall approve or disapprove the 

13 plan or amendment. 

14 ‘‘(B) EXCEPTION.—For fiscal year 2006, 

15 the Secretary shall approve or disapprove a 

16 plan submitted under paragraph (1) not later 

17 than December 31, 2006. 

18 ‘‘(d) AUTHORIZED USES.— 

19 ‘‘(1) IN GENERAL.—A producing State or coast20 al political subdivision shall use all amounts received 

21 under this section, including any amount deposited 

22 in a trust fund that is administered by the State or 

23 coastal political subdivision and dedicated to uses 

24 consistent with this section, in accordance with all 
310 

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1 applicable Federal and State law, only for 1 or more 

2 of the following purposes: 

3 ‘‘(A) Projects and activities for the con4 servation, protection, or restoration of coastal 

5 areas, including wetland. 

6 ‘‘(B) Mitigation of damage to fish, wildlife, 

7 or natural resources. 

8 ‘‘(C) Planning assistance and the adminis9 trative costs of complying with this section. 

10 ‘‘(D) Implementation of a federally-ap11 proved marine, coastal, or comprehensive con12 servation management plan. 

13 ‘‘(E) Mitigation of the impact of outer 

14 Continental Shelf activities through funding of 

15 onshore infrastructure projects and public serv16 ice needs. 

17 ‘‘(2) COMPLIANCE WITH AUTHORIZED USES.— 

18 If the Secretary determines that any expenditure 

19 made by a producing State or coastal political sub20 division is not consistent with this subsection, the 

21 Secretary shall not disburse any additional amount 

22 under this section to the producing State or the 

23 coastal political subdivision until such time as all 

24 amounts obligated for unauthorized uses have been 

25 repaid or reobligated for authorized uses.’’. 
311 

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1 Subtitle E—Natural Gas 

2 SEC. 381. EXPORTATION OR IMPORTATION OF NATURAL 

3 GAS. 

4 Section 3 of the Natural Gas Act (15 U.S.C. 717b) 

5 is amended by adding at the end the following: 

6 ‘‘(d) Except as specifically provided in this part, noth7 ing in this Act affects the rights of States under— 

8 ‘‘(1) the Coastal Zone Management Act of 1972 

9 (16 U.S.C. 1451 et seq.) 

10 ‘‘(2) the Clean Air Act (42 U.S.C. 7401 et 

11 seq.); or 

12 ‘‘(3) the Federal Water Pollution Control Act 

13 (33 U.S.C. 1251 et seq.). 

14 ‘‘(e)(1) No facilities located onshore or in State wa15 ters for the import of natural gas from a foreign country, 

16 or the export of natural gas to a foreign country, shall 

17 be sited, constructed, expanded, or operated, unless the 

18 Commission has authorized such acts or operations. 

19 ‘‘(2) The Commission shall have the exclusive author20 ity to approve or deny an application for the siting, con21 struction, expansion, or operation of facilities located on22 shore or in State waters for the import of natural gas from 

23 a foreign county or the export of natural gas to a foreign 

24 country. 
312 

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1 ‘‘(3)(A) Except as provided in subparagraph (B), the 

2 Commission may approve an application described in para3 graph (2), in whole or part, with such modifications and 

4 upon such terms and conditions as the Commission finds 

5 appropriate. 

6 ‘‘(B) The Commission shall not— 

7 ‘‘(i) deny an application solely on the basis that 

8 the applicant proposes to use the liquefied natural 

9 gas import facility exclusively or partially for gas 

10 that the applicant or an affiliate of the applicant will 

11 supply to the facility; or 

12 ‘‘(ii) condition an order on— 

13 ‘‘(I) a requirement that the liquefied nat14 ural gas import facility offer service to cus15 tomers other than the applicant, or any affiliate 

16 of the applicant, securing the order; 

17 ‘‘(II) any regulation of the rates, charges, 

18 terms, or conditions of service of the liquefied 

19 natural gas import facility; or 

20 ‘‘(III) a requirement to file with the Com21 mission schedules or contracts related to the 

22 rates, charges, terms, or conditions of service of 

23 the liquefied natural gas import facility. 

24 ‘‘(4) An order issued for a liquefied natural gas im25 port facility that also offers service to customers on an 
313 

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1 open access basis shall not result in subsidization of ex2 pansion capacity by existing customers, degradation of 

3 service to existing customers, or undue discrimination 

4 against existing customers as to their terms or conditions 

5 of service at the facility, as all of those terms are defined 

6 by the Commission.’’. 

7 SEC. 382. NEW NATURAL GAS STORAGE FACILITIES. 

8 Section 4 of the Natural Gas Act (15 U.S.C. 717c) 

9 is amended by adding at the end the following: 

10 ‘‘(f)(1) In exercising its authority under this Act or 

11 the Natural Gas Policy Act of 1978 (15 U.S.C. 3301 et 

12 seq.), the Commission may authorize a natural gas com13 pany (or any person that will be a natural gas company 

14 on completion of any proposed construction) to provide 

15 storage and storage-related services at market-based rates 

16 for new storage capacity placed in service after the date 

17 of enactment of the Energy Policy Act of 2005, notwith18 standing the fact that the company is unable to dem19 onstrate that the company lacks market power, if the 

20 Commission determines that— 

21 ‘‘(A) market-based rates are in the public inter22 est and necessary to encourage the construction of 

23 storage capacity in areas needing storage services; 

24 and 

25 ‘‘(B) customers are adequately protected. 
314 

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1 ‘‘(2) The Commission shall ensure that reasonable 

2 terms and conditions are in place to protect consumers. 

3 ‘‘(3) If the Commission authorizes a natural gas com4 pany to charge market-based rates under this subsection, 

5 the Commission shall review periodically (but not more 

6 frequently than triennially) whether the market-based rate 

7 is just, reasonable, and not unduly discriminatory or pref8 erential.’’. 

9 SEC. 383. PROCESS COORDINATION; HEARINGS; RULES OF 

10 PROCEDURES. 

11 Section 15 of the Natural Gas Act (15 U.S.C. 717n) 

12 is amended— 

13 (1) by striking the section heading and insert14 ing the following: 

15 ‘‘PROCESS COORDINATION; HEARINGS; RULES OF

16 PROCEDURE’’; 

17 (2) by redesignating subsections (a) and (b) as 

18 subsections (e) and (f), respectively; 

19 (3) by striking ‘‘SEC. 15.’’ and inserting the fol20 lowing: 

21 ‘‘SEC. 15. (a) In this section, the term ‘Federal au22 thorization’— 

23 ‘‘(1) means any authorization required under 

24 Federal law with respect to an application for au25 thorization under section 3 or a certificate of public 

26 convenience and necessity under section 7; and 
315 

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1 ‘‘(2) includes any permits, special use author2 izations, certifications, opinions, or other approvals 

3 as may be required under Federal law with respect 

4 to an application for authorization under section 3 

5 or a certificate of public convenience and necessity 

6 under section 7. 

7 ‘‘(b)(1) With respect to an application for Federal au8 thorization, the Commission shall, unless the Commission 

9 orders otherwise, be the lead agency for purposes of com10 plying with the National Environmental Policy Act of 

11 1969 (42 U.S.C. 4321 et seq.). 

12 ‘‘(2) As lead agency, the Commission, in consultation 

13 with affected agencies, shall prepare a single environ14 mental review document, which shall be used as a basis 

15 for all decisions under Federal law on— 

16 ‘‘(A) an application for authorization under sec17 tion 3; or 

18 ‘‘(B) a certificate of public convenience and ne19 cessity under section 7. 

20 ‘‘(c)(1) The Commission shall, in consultation with 

21 agencies responsible for Federal authorizations, and with 

22 due consideration of recommendations by the agencies, es23 tablish a schedule for all Federal authorizations required 

24 to be completed before an application under section 3 or 

25 7 may be approved. 
316 

•S 10 PCS 

1 ‘‘(2) In establishing a schedule, the Commission shall 

2 comply with applicable schedules established by Federal 

3 law. 

4 ‘‘(3) All Federal and State agencies with jurisdiction 

5 over natural gas infrastructure shall seek to coordinate 

6 their proceedings within the timeframes established by the 

7 Commission with respect to an application for authoriza8 tion under section 3 or a certificate of public convenience 

9 and necessity under section 7. 

10 ‘‘(d)(1) In a case in which an administrative agency 

11 or officer has failed to act by the deadline established by 

12 the Commission under this section for deciding whether 

13 to issue the authorization, the applicant or any State in 

14 which the facility would be located may file an appeal with 

15 the President, who shall, in consultation with the affected 

16 agency, take action on the pending application. 

17 ‘‘(2) Based on the overall record and in consultation 

18 with the affected agency, the President may— 

19 ‘‘(A) issue the necessary authorization with any 

20 appropriate conditions; or 

21 ‘‘(B) deny the application. 

22 ‘‘(3) Not later than 90 days after the filing of an 

23 appeal, the President shall issue a decision as to that ap24 peal. 
317 

•S 10 PCS 

1 ‘‘(4) In making a decision under this subsection, the 

2 President shall comply with applicable requirements of 

3 Federal law, including— 

4 ‘‘(A) the Endangered Species Act of 1973 (16 

5 U.S.C. 1531 et seq.) 

6 ‘‘(B) the Federal Water Pollution Control Act 

7 (33 U.S.C. 1251 et seq.); 

8 ‘‘(C) the National Forest Management Act of 

9 1976 (16 U.S.C. 472a et seq.); 

10 ‘‘(D) the National Environmental Policy Act of 

11 1969 (42 U.S.C. 4321 et seq.); 

12 ‘‘(E) the Federal Land Policy and Management 

13 Act of 1976 (43 U.S.C. 1701 et seq.); 

14 ‘‘(F) the Coastal Zone Management Act of 

15 1972 (16 U.S.C. 1451 et seq.); and 

16 ‘‘(G) the Clean Air Act (42 U.S.C. 7401 et 

17 seq.).’’. 

18 SEC. 384. PENALTIES. 

19 (a) CRIMINAL PENALTIES.— 

20 (1) NATURAL GAS ACT.—Section 21 of the Nat21 ural Gas Act (15 U.S.C. 717t) is amended— 

22 (A) in subsection (a)— 

23 (i) by striking ‘‘$5,000’’ and inserting 

24 ‘‘$1,000,000’’; and 
318 

•S 10 PCS 

1 (ii) by striking ‘‘two years’’ and in2 serting ‘‘5 years’’; and 

3 (B) in subsection (b), by striking ‘‘$500’’ 

4 and inserting ‘‘$50,000’’. 

5 (2) NATURAL GAS POLICY ACT OF 1978.—Sec6 tion 504(c) of the Natural Gas Policy Act of 1978 

7 (15 U.S.C. 3414(c)) is amended— 

8 (A) in paragraph (1)— 

9 (i) in subparagraph (A), by striking 

10 ‘‘$5,000’’ and inserting ‘‘$1,000,000’’; 

11 (ii) in subparagraph (B), by striking 

12 ‘‘two years’’ and inserting ‘‘5 years’’; and 

13 (B) in paragraph (2), by striking ‘‘$500 

14 for each violation’’ and inserting ‘‘$50,000 for 

15 each day on which the offense occurs’’. 

16 (b) CIVIL PENALTIES.— 

17 (1) NATURAL GAS ACT.—The Natural Gas Act 

18 (15 U.S.C. 717 et seq.) is amended— 

19 (A) by redesignating sections 22 through 

20 24 as sections 24 through 26, respectively; and 

21 (B) by inserting after section 21 (15 

22 U.S.C. 717t) the following: 

23 ‘‘CIVIL PENALTY AUTHORITY

24 ‘‘SEC. 22. (a) Any person that violates this Act, or 

25 any rule, regulation, restriction, condition, or order made 

26 or imposed by the Commission under authority of this Act, 
319 

•S 10 PCS 

1 shall be subject to a civil penalty of not more than 

2 $1,000,000 per day per violation for as long as the viola3 tion continues. 

4 ‘‘(b) The penalty shall be assessed by the Commission 

5 after notice and opportunity for public hearing. 

6 ‘‘(c) In determining the amount of a proposed pen7 alty, the Commission shall take into consideration the na8 ture and seriousness of the violation and the efforts to 

9 remedy the violation.’’. 

10 (2) NATURAL GAS POLICY ACT OF 1978.—Sec11 tion 504(b)(6)(A) of the Natural Gas Policy Act of 

12 1978 (15 U.S.C. 3414(b)(6)(A)) is amended— 

13 (A) in clause (i), by striking ‘‘$5,000’’ and 

14 inserting ‘‘$1,000,000’’; and 

15 (B) in clause (ii), by striking ‘‘$25,000’’ 

16 and inserting ‘‘$1,000,000’’. 

17 SEC. 385. MARKET MANIPULATION. 

18 The Natural Gas Act is amended by inserting after 

19 section 4 (15 U.S.C. 717c) the following: 

20 ‘‘PROHIBITION ON MARKET MANIPULATION

21 ‘‘SEC. 4A. It shall be unlawful for any entity, directly 

22 or indirectly, to use or employ, in connection with the pur23 chase or sale of natural gas or the purchase or sale of 

24 transportation services subject to the jurisdiction of the 

25 Commission, any manipulative or deceptive device or con26 trivance (as those terms are used in section 10(b) of the 
320 

•S 10 PCS 

1 Securities Exchange Act of 1934 (15 U.S.C. 78j(b)) in 

2 contravention of such rules and regulations as the Com3 mission may prescribe as necessary in the public interest 

4 or for the protection of natural gas ratepayers.’’ 

5 SEC. 386. NATURAL GAS MARKET TRANSPARENCY RULES. 

6 The Natural Gas Act (15 U.S.C. 717 et seq.) (as 

7 amended by section 385(b)(1)) is amended by inserting 

8 after section 22 the following: 

9 ‘‘NATURAL GAS MARKET TRANSPARENCY RULES

10 ‘‘SEC. 23. (a)(1) The Commission may issue such 

11 rules as the Commission considers to be appropriate to 

12 establish an electronic information system to provide the 

13 Commission and the public with access to such informa14 tion as is necessary to facilitate price transparency and 

15 participation in markets for the sale or transportation of 

16 natural gas in interstate commerce. 

17 ‘‘(2) The system under paragraph (1) shall provide, 

18 on a timely basis, information about the availability and 

19 prices of natural gas sold at wholesale and in interstate 

20 commerce to the Commission, State commissions, buyers 

21 and sellers of wholesale natural gas, and the public. 

22 ‘‘(3) The Commission may— 

23 ‘‘(A) obtain information described in paragraph 

24 (2) from any market participant; and 

25 ‘‘(B) rely on an entity other than the Commis26 sion to receive and make public the information. 
321 

•S 10 PCS 

1 ‘‘(b)(1) Rules described in subsection (a)(1), if adopt2 ed, shall exempt from disclosure information the Commis3 sion determines would, if disclosed, be detrimental to the 

4 operation of an effective market or jeopardize system secu5 rity. 

6 ‘‘(2) In determining the information to be made avail7 able under this section and time to make the information 

8 available, the Commission shall seek to ensure that con9 sumers and competitive markets are protected from the 

10 adverse effects of potential collusion or other anticompeti11 tive behaviors that can be facilitated by untimely public 

12 disclosure of transaction-specific information. 

13 ‘‘(c)(1) This section shall not affect the exclusive ju14 risdiction of the Commodity Futures Trading Commission 

15 with respect to accounts, agreements, contracts, or trans16 actions in commodities under the Commodity Exchange 

17 Act (7 U.S.C. 1 et seq.). 

18 ‘‘(2) Any request for information to a designated con19 tract market, registered derivatives transaction execution 

20 facility, board of trade, exchange, or market involving ac21 counts, agreements, contracts, or transactions in commod22 ities (including natural gas, electricity and other energy 

23 commodities) within the exclusive jurisdiction of the Com24 modity Futures Trading Commission shall be directed to 

25 the Commodity Futures Trading Commission, which shall 
322 

•S 10 PCS 

1 cooperate in responding to any information request by the 

2 Commission. 

3 ‘‘(d) In carrying out this section, the Commission 

4 shall not— 

5 ‘‘(1) compete with, or displace from the market 

6 place, any price publisher (including any electronic 

7 price publisher); 

8 ‘‘(2) regulate price publishers (including any 

9 electronic price publisher); or 

10 ‘‘(3) impose any requirements on the publica11 tion of information by price publishers (including 

12 any electronic price publisher). 

13 ‘‘(e)(1) The Commission shall not condition access to 

14 interstate pipeline transportation on the reporting require15 ments of this section. 

16 ‘‘(2) The Commission shall not require natural gas 

17 producers, processors, or users who have a de minimis 

18 market presence to comply with the reporting require19 ments of this section. 

20 ‘‘(f)(1) Except as provided in paragraph (2), no per21 son shall be subject to any civil penalty under this section 

22 with respect to any violation occurring more than 3 years 

23 before the date on which the person is provided notice of 

24 the proposed penalty under section 22(b). 
323 

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1 ‘‘(2) Paragraph (1) shall not apply in any case in 

2 which the Commission finds that a seller that has entered 

3 into a contract for the transportation or sale of natural 

4 gas subject to the jurisdiction of the Commission has en5 gaged in fraudulent market manipulation activities materi6 ally affecting the contract in violation of section 4A.’’. 

7 SEC. 387. DEADLINE FOR DECISION ON APPEALS OF CON8 SISTENCY DETERMINATION UNDER THE 

9 COASTAL ZONE MANAGEMENT ACT OF 1972. 

10 (a) IN GENERAL.—Section 319 of the Coastal Zone 

11 Management Act of 1972 (16 U.S.C. 1465) is amended 

12 to read as follows: 

13 ‘‘APPEALS TO THE SECRETARY

14 ‘‘SEC. 319. (a) NOTICE.—Not later than 30 days 

15 after the date of the filing of an appeal to the Secretary 

16 of a consistency determination under section 307, the Sec17 retary shall publish an initial notice in the Federal Reg18 ister. 

19 ‘‘(b) CLOSURE OF RECORD.— 

20 ‘‘(1) IN GENERAL.—Not later than the end of 

21 the 270-day period beginning on the date of publica22 tion of an initial notice under subsection (a), except 

23 as provided in paragraph (3), the Secretary shall im24 mediately close the decision record and receive no 

25 more filings on the appeal. 
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1 ‘‘(2) NOTICE.—After closing the administrative 

2 record, the Secretary shall immediately publish a no3 tice in the Federal Register that the administrative 

4 record has been closed. 

5 ‘‘(3) EXCEPTION.— 

6 ‘‘(A) IN GENERAL.—Subject to subpara7 graph (B), during the 270-day period described 

8 in paragraph (1), the Secretary may stay the 

9 closing of the decision record— 

10 ‘‘(i) for a specific period mutually 

11 agreed to in writing by the appellant and 

12 the State agency; or 

13 ‘‘(ii) as the Secretary determines nec14 essary to receive, on an expedited basis— 

15 ‘‘(I) any supplemental informa16 tion specifically requested by the Sec17 retary to complete a consistency re18 view under this Act; or 

19 ‘‘(II) any clarifying information 

20 submitted by a party to the pro21 ceeding related to information already 

22 existing in the sole record. 

23 ‘‘(B) APPLICABILITY.—The Secretary may 

24 only stay the 270-day period described in para25 graph (1) for a period not to exceed 60 days. 
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1 ‘‘(c) DEADLINE FOR DECISION.— 

2 ‘‘(1) IN GENERAL.—Not later than 90 days 

3 after the date of publication of a Federal Register 

4 notice stating when the decision record for an appeal 

5 has been closed, the Secretary shall issue a decision 

6 or publish a notice in the Federal Register explain7 ing why a decision cannot be issued at that time. 

8 ‘‘(2) SUBSEQUENT DECISION.—Not later than 

9 45 days after the date of publication of a Federal 

10 Register notice explaining why a decision cannot be 

11 issued within the 90-day period, the Secretary shall 

12 issue a decision.’’. 

13 SEC. 388. FEDERAL-STATE LIQUEFIED NATURAL GAS FO14 RUMS. 

15 (a) IN GENERAL.—Not later than 1 year after the 

16 date of enactment of this Act, the Secretary, in coopera17 tion and consultation with the Secretary of Transpor18 tation, the Secretary of Homeland Security, the Federal 

19 Energy Regulatory Commission, and the Governors of the 

20 Coastal States, shall convene not less than 3 forums on 

21 liquefied natural gas. 

22 (b) REQUIREMENTS.—The forums shall— 

23 (1) be located in areas where liquefied natural 

24 gas facilities are under consideration; 
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1 (2) be designed to foster dialogue among Fed2 eral officials, State and local officials, the general 

3 public, independent experts, and industry represent4 atives; and 

5 (3) at a minimum, provide an opportunity for 

6 public education and dialogue on— 

7 (A) the role of liquefied natural gas in 

8 meeting current and future United States en9 ergy supply requirements and demand, in the 

10 context of the full range of energy supply op11 tions; 

12 (B) the Federal and State siting and per13 mitting processes; 

14 (C) the potential risks and rewards associ15 ated with importing liquefied natural gas; 

16 (D) the Federal safety and environmental 

17 requirements (including regulations) applicable 

18 to liquefied natural gas; 

19 (E) prevention, mitigation, and response 

20 strategies for liquefied natural gas hazards; and 

21 (F) additional issues as appropriate. 

22 (c) PURPOSE.—The purpose of the forums shall be 

23 to identify and develop best practices for addressing the 

24 issues and challenges associated with liquefied natural gas 

25 imports, building on existing cooperative efforts. 
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated such sums as are nec3 essary to carry out this section. 

4 SEC. 389. PROHIBITION OF TRADING AND SERVING BY CER5 TAIN PERSONS. 

6 Section 20 of the Natural Gas Act (15 U.S.C. 717s) 

7 is amended by adding at the end the following: 

8 ‘‘(d) In any proceedings under subsection (a), the 

9 court may prohibit, conditionally or unconditionally, and 

10 permanently or for such period of time as the court deter11 mines, any person who is engaged or has engaged in prac12 tices constituting a violation of section 4A (including re13 lated rules and regulations) from— 

14 ‘‘(1) acting as an officer or director of a natural 

15 gas company; or 

16 ‘‘(2) engaging in the business of— 

17 ‘‘(A) the purchasing or selling of natural 

18 gas; or 

19 ‘‘(B) the purchasing or selling of trans20 mission services subject to the jurisdiction of 

21 the Commission.’’. 
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1 Subtitle F—Federal Coalbed 

2 Methane Regulation 

3 SEC. 391. FEDERAL COALBED METHANE REGULATION. 

4 Any State that, as of the date of enactment of this 

5 Act, is included on the list of affected States established 

6 under section 1339(b) of the Energy Policy Act of 1992 

7 (42 U.S.C. 13368(b)) shall be removed from the list if, 

8 not later than 3 years after the date of enactment of this 

9 Act, the State takes, or prior to that date of enactment, 

10 has taken, any of the actions required for removal from 

11 the list under that section. 

12 TITLE IV—COAL 

13 Subtitle A—Clean Coal Power 

14 Initiative 

15 SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 

16 (a) CLEAN COAL POWER INITIATIVE.—There is au17 thorized to be appropriated to the Secretary to carry out 

18 the activities authorized by this subtitle $200,000,000 for 

19 each of fiscal years 2006 through 2014, to remain avail20 able until expended. 

21 (b) REPORT.—Not later than March 31, 2006, the 

22 Secretary shall submit to Congress a report that includes 

23 an 8-year plan containing— 

24 (1) a detailed assessment of whether the aggre25 gate assistance levels provided under subsection (a) 
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1 are the appropriate assistance levels for the clean 

2 coal power initiative; 

3 (2) a detailed description of how proposals for 

4 assistance under the clean coal power initiative will 

5 be solicited and evaluated, including a list of all ac6 tivities expected to be undertaken; 

7 (3) a detailed list of technical milestones for 

8 each coal and related technology that will be pursued 

9 under the clean coal power initiative; and 

10 (4) a detailed description of how the clean coal 

11 power initiative will avoid problems enumerated in 

12 Government Accountability Office reports on the 

13 Clean Coal Technology Program of the Department, 

14 including problems that have resulted in unspent 

15 funds and projects that failed either financially or 

16 scientifically. 

17 SEC. 402. PROJECT CRITERIA. 

18 (a) IN GENERAL.—To be eligible to receive assistance 

19 under this subtitle, a project shall advance efficiency, envi20 ronmental performance, and cost competitiveness well be21 yond the level of technologies that are in commercial serv22 ice or have been demonstrated on a scale that the Sec23 retary determines is sufficient to demonstrate that com24 mercial service is viable as of the date of enactment of 

25 this Act. 
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1 (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER

2 INITIATIVE.— 

3 (1) GASIFICATION PROJECTS.— 

4 (A) IN GENERAL.—In allocating the funds 

5 made available under section 401(a), the Sec6 retary shall ensure that at least 80 percent of 

7 the funds are used only to fund projects on 

8 coal-based gasification technologies, including— 

9 (i) gasification combined cycle; 

10 (ii) gasification fuel cells; 

11 (iii) gasification coproduction; and 

12 (iv) hybrid gasification or combustion. 

13 (B) TECHNICAL MILESTONES.— 

14 (i) PERIODIC DETERMINATION.— 

15 (I) IN GENERAL.—The Secretary 

16 shall periodically set technical mile17 stones specifying the emission and 

18 thermal efficiency levels that coal gas19 ification projects under this subtitle 

20 shall be designed, and reasonably ex21 pected, to achieve. 

22 (II) RESTRICTIVE MILE23 STONES.—The technical milestones 

24 shall become more restrictive during 
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1 the period of the clean coal power ini2 tiative. 

3 (ii) 2020 GOALS.—The Secretary shall 

4 establish the periodic milestones so as to 

5 achieve by the year 2020 coal gasification 

6 projects able— 

7 (I) to remove at least 99 percent 

8 of sulfur dioxide; 

9 (II) to emit not more than .05 

10 lbs of NOx per million Btu; 

11 (III) to achieve substantial reduc12 tions in mercury emissions; and 

13 (IV) to achieve a thermal effi14 ciency of at least— 

15 (aa) 60 percent for coal of 

16 more than 9,000 Btu; 

17 (bb) 59 percent for coal of 

18 7,000 to 9,000 Btu; and 

19 (cc) 50 percent for coal of 

20 less than 7,000 Btu. 

21 (2) OTHER PROJECTS.— 

22 (A) ALLOCATION OF FUNDS.—The Sec23 retary shall ensure that up to 20 percent of the 

24 funds made available under section 401(a) are 
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1 used to fund projects other than those described 

2 in paragraph (1). 

3 (B) TECHNICAL MILESTONES.— 

4 (i) PERIODIC DETERMINATION.— 

5 (I) IN GENERAL.—The Secretary 

6 shall periodically establish technical 

7 milestones specifying the emission and 

8 thermal efficiency levels that projects 

9 funded under this paragraph shall be 

10 designed, and reasonably expected, to 

11 achieve. 

12 (II) RESTRICTIVE MILE13 STONES.—The technical milestones 

14 shall become more restrictive during 

15 the period of the clean coal power ini16 tiative. 

17 (ii) 2010 GOALS.—The Secretary shall 

18 set the periodic milestones so as to achieve 

19 by the year 2010 projects able— 

20 (I) to remove at least 97 percent 

21 of sulfur dioxide; 

22 (II) to emit no more than .08 lbs 

23 of NOx per million Btu; 

24 (III) to achieve substantial reduc25 tions in mercury emissions; and 
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1 (IV) to achieve a thermal effi2 ciency of at least— 

3 (aa) 45 percent for coal of 

4 more than 9,000 Btu; 

5 (bb) 44 percent for coal of 

6 7,000 to 9,000 Btu; and 

7 (cc) 40 percent for coal of 

8 less than 7,000 Btu. 

9 (3) CONSULTATION.—Before setting the tech10 nical milestones under paragraphs (1)(B) and 

11 (2)(B), the Secretary shall consult with— 

12 (A) the Administrator of the Environ13 mental Protection Agency; and 

14 (B) interested entities, including— 

15 (i) coal producers; 

16 (ii) industries using coal; 

17 (iii) organizations that promote coal 

18 or advanced coal technologies; 

19 (iv) environmental organizations; and 

20 (v) organizations representing work21 ers. 

22 (4) EXISTING UNITS.—In the case of projects 

23 at units in existence on the date of enactment of this 

24 Act, in lieu of the thermal efficiency requirements 

25 described in paragraphs (1)(B)(ii)(IV) and 
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1 (2)(B)(ii)(IV), the milestones shall be designed to 

2 achieve an overall thermal design efficiency improve3 ment, compared to the efficiency of the unit as oper4 ated, of not less than— 

5 (A) 7 percent for coal of more than 9,000 

6 Btu; 

7 (B) 6 percent for coal of 7,000 to 9,000 

8 Btu; or 

9 (C) 4 percent for coal of less than 7,000 

10 Btu. 

11 (5) ADMINISTRATION.— 

12 (A) ELEVATION OF SITE.—In evaluating 

13 project proposals to achieve thermal efficiency 

14 levels established under paragraphs (1)(B)(i) 

15 and (2)(B)(i) and in determining progress to16 wards thermal efficiency milestones under para17 graphs (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4), 

18 the Secretary shall take into account and make 

19 adjustments for the elevation of the site at 

20 which a project is proposed to be constructed. 

21 (B) APPLICABILITY OF MILESTONES.—The 

22 thermal efficiency milestones under paragraphs 

23 (1)(B)(ii)(IV), (2)(B)(ii)(IV), and (4) shall not 

24 apply to projects that separate and capture at 
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1 least 50 percent of the potential emissions of 

2 carbon dioxide by a facility. 

3 (C) PRIORITY.—In carrying out this sub4 title, the Secretary shall give priority to projects 

5 that include, as part of the project, the separa6 tion and capture of carbon dioxide. 

7 (c) FINANCIAL CRITERIA.—The Secretary shall not 

8 provide financial assistance under this subtitle for a 

9 project unless the recipient documents to the satisfaction 

10 of the Secretary that— 

11 (1) the receipt of Federal assistance for the 

12 project is not required for the recipient to be finan13 cially viable; 

14 (2) the recipient will provide sufficient informa15 tion to the Secretary to enable the Secretary to en16 sure that the funds are spent efficiently and effec17 tively; and 

18 (3) a market exists for the technology being 

19 demonstrated or applied, as evidenced by statements 

20 of interest in writing from potential purchasers of 

21 the technology. 

22 (d) FINANCIAL ASSISTANCE.—The Secretary shall 

23 provide financial assistance to projects that, as determined 

24 by the Secretary— 
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1 (1) meet the requirements of subsections (a), 

2 (b), and (c); and 

3 (2) are likely— 

4 (A) to achieve overall cost reductions in 

5 the use of coal to generate useful forms of en6 ergy; 

7 (B) to improve the competitiveness of coal 

8 among various forms of energy in order to 

9 maintain a diversity of fuel choices in the 

10 United States to meet electricity generation re11 quirements; and 

12 (C) to demonstrate methods and equip13 ment that are applicable to 25 percent of the 

14 electricity generating facilities, using various 

15 types of coal, that use coal as the primary feed16 stock as of the date of enactment of this Act. 

17 (e) COST-SHARING.—In carrying out this subtitle, 

18 the Secretary shall require cost sharing in accordance with 

19 section 1002. 

20 (f) APPLICABILITY.—No technology, or level of emis21 sion reduction, solely by reason of the use of the tech22 nology, or the achievement of the emission reduction, by 

23 1 or more facilities receiving assistance under this Act, 

24 shall be considered to be— 
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1 (1) adequately demonstrated for purposes of 

2 section 111 of the Clean Air Act (42 U.S.C. 7411); 

3 (2) achievable for purposes of section 169 of 

4 that Act (42 U.S.C. 7479); or 

5 (3) achievable in practice for purposes of sec6 tion 171 of that Act (42 U.S.C. 7501). 

7 SEC. 403. REPORT. 

8 Not later than 1 year after the date of enactment 

9 of this Act, and once every 2 years thereafter through 

10 2012, the Secretary, in consultation with other appro11 priate Federal agencies, shall submit to Congress a report 

12 describing— 

13 (1)(A) the technical milestones described in sec14 tion 402; and 

15 (B) how those milestones ensure progress to16 ward meeting the requirements of subsections 

17 (b)(1)(B) and (b)(2)(B) of section 402; and 

18 (2) the status of projects that receive assistance 

19 under this subtitle. 

20 SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE. 

21 (a) IN GENERAL.—As part of the clean coal power 

22 initiative, the Secretary shall award competitive, merit23 based grants to institutions of higher education for the 

24 establishment of centers of excellence for energy systems 

25 of the future. 
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1 (b) BASIS FOR GRANTS.— The Secretary shall award 

2 grants under this section to institutions of higher edu3 cation that show the greatest potential for advancing new 

4 clean coal technologies. 

5 SEC. 405. INTEGRATED COAL/RENEWABLE ENERGY SYS6 TEM. 

7 (a) IN GENERAL.—Subject to the availability of ap8 propriations, the Secretary may provide loan guarantees 

9 for a project to produce energy from coal of less than 

10 7,000 Btu/lb using appropriate advanced integrated gasifi11 cation combined cycle technology, including repowering of 

12 existing facilities, that— 

13 (1) is combined with wind and other renewable 

14 sources; 

15 (2) minimizes and offers the potential to se16 quester carbon dioxide emissions; and 

17 (3) provides a ready source of hydrogen for 

18 near-site fuel cell demonstrations. 

19 (b) REQUIREMENTS.—The facility— 

20 (1) may be built in stages; 

21 (2) shall have a combined output of at least 

22 200 megawatts at successively more competitive 

23 rates; and 

24 (3) shall be located in the Upper Great Plains. 
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1 (c) TECHNICAL CRITERIA.—Technical criteria de2 scribed in section 402(b) shall apply to the facility. 

3 (d) FEDERAL COST SHARE.—The Federal cost share 

4 for the facility shall not exceed 50 percent. 

5 (e) INVESTMENT TAX CREDITS.— 

6 (1) IN GENERAL.—The loan guarantees pro7 vided under this section do not preclude the facility 

8 from receiving an allocation for investment tax cred9 its under section 48A of the Internal Revenue Code 

10 of 1986. 

11 (2) OTHER FUNDING.—Use of the investment 

12 tax credit described in paragraph (1) does not pro13 hibit the use of other clean coal program funding. 

14 SEC. 406. LOAN TO PLACE ALASKA CLEAN COAL TECH15 NOLOGY FACILITY IN SERVICE. 

16 (a) DEFINITIONS.—In this section: 

17 (1) BORROWER.—The term ‘‘borrower’’ means 

18 the owner of the clean coal technology plant. 

19 (2) CLEAN COAL TECHNOLOGY PLANT.—The 

20 term ‘‘clean coal technology plant’’ means the plant 

21 located near Healy, Alaska, constructed under De22 partment cooperative agreement number DE–FC– 

23 22–91PC90544. 

24 (3) COST OF A DIRECT LOAN.—The term ‘‘cost 

25 of a direct loan’’ has the meaning given the term in 
340 

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1 section 502(5)(B) of the Federal Credit Reform Act 

2 of 1990 (2 U.S.C. 661a(5)(B)). 

3 (b) AUTHORIZATION.—Subject to subsection (c), the 

4 Secretary shall use amounts made available under sub5 section (e) to provide the cost of a direct loan to the bor6 rower for purposes of placing the clean coal technology 

7 plant into reliable operation for the generation of elec8 tricity. 

9 (c) REQUIREMENTS.— 

10 (1) MAXIMUM LOAN AMOUNT.—The amount of 

11 the direct loan provided under subsection (b) shall 

12 not exceed $80,000,000. 

13 (2) DETERMINATIONS BY SECRETARY.—Before 

14 providing the direct loan to the borrower under sub15 section (b), the Secretary shall determine that— 

16 (A) the plan of the borrower for placing 

17 the clean coal technology plant in reliable oper18 ation has a reasonable prospect of success; 

19 (B) the amount of the loan (when com20 bined with amounts available to the borrower 

21 from other sources) will be sufficient to carry 

22 out the project; and 

23 (C) there is a reasonable prospect that the 

24 borrower will repay the principal and interest 

25 on the loan. 
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1 (3) INTEREST; TERM.—The direct loan pro2 vided under subsection (b) shall bear interest at a 

3 rate and for a term that the Secretary determines 

4 appropriate, after consultation with the Secretary of 

5 the Treasury, taking into account the needs and ca6 pacities of the borrower and the prevailing rate of 

7 interest for similar loans made by public and private 

8 lenders. 

9 (4) ADDITIONAL TERMS AND CONDITIONS.— 

10 The Secretary may require any other terms and con11 ditions that the Secretary determines to be appro12 priate. 

13 (d) USE OF PAYMENTS.—The Secretary shall retain 

14 any payments of principal and interest on the direct loan 

15 provided under subsection (b) to support energy research 

16 and development activities, to remain available until ex17 pended, subject to any other conditions in an applicable 

18 appropriations Act. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated such sums as are nec21 essary to provide the cost of a direct loan under subsection 

22 (b). 
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1 SEC. 407. WESTERN INTEGRATED COAL GASIFICATION 

2 DEMONSTRATION PROJECT. 

3 (a) IN GENERAL.—Subject to the availability of ap4 propriations, the Secretary shall carry out a demonstra5 tion project to produce energy from coal (of not more than 

6 9,000 Btu/lb) mined in the western United States using 

7 integrated gasification combined cycle technology, includ8 ing repowering of existing facilities, that is capable of se9 questering carbon dioxide emissions (referred to in this 

10 section as the ‘‘demonstration project’’). 

11 (b) LOCATION.—The demonstration project shall be 

12 located in a western State at an altitude of greater than 

13 4,000 feet above sea level. 

14 (c) COST SHARING.—The Federal share of the cost 

15 of the demonstration project shall be determined in ac16 cordance with section 1002. 

17 (d) LOAN GUARANTEES.—Notwithstanding title XIV, 

18 the demonstration project shall not be eligible for Federal 

19 loan guarantees. 

20 Subtitle B—Federal Coal Leases 

21 SEC. 411. REPEAL OF THE 160-ACRE LIMITATION FOR COAL 

22 LEASES. 

23 Section 3 of the Mineral Leasing Act (30 U.S.C. 203) 

24 is amended— 

25 (1) in the first sentence, by striking ‘‘Any per26 son’’ and inserting the following: ‘‘(a)(1) Except as 
343 

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1 provided in paragraph (3), on a finding by the Sec2 retary under paragraph (2), any person’’; 

3 (2) in the second sentence, by striking ‘‘The 

4 Secretary’’ and inserting the following: 

5 ‘‘(b) The Secretary’’; 

6 (3) in the third sentence, by striking ‘‘The min7 imum’’ and inserting the following: 

8 ‘‘(c) The minimum’’; 

9 (4) in subsection (a) (as designated by para10 graph (1))— 

11 (A) by striking ‘‘upon’’ and all that follows 

12 and inserting the following: ‘‘secure modifica13 tions of the original coal lease by including ad14 ditional coal lands or coal deposits contiguous 

15 or cornering to those embraced in the lease.’’; 

16 and 

17 (B) by adding at the end the following: 

18 ‘‘(2) A finding referred to in paragraph (1) is a find19 ing by the Secretary that the modifications— 

20 ‘‘(A) would be in the interest of the United 

21 States; 

22 ‘‘(B) would not displace a competitive interest 

23 in the lands; and 
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1 ‘‘(C) would not include lands or deposits that 

2 can be developed as part of another potential or ex3 isting operation. 

4 ‘‘(3) In no case shall the total area added by modi5 fications to an existing coal lease under paragraph (1)— 

6 ‘‘(A) exceed 320 acres; or 

7 ‘‘(B) add acreage larger than that in the origi8 nal lease.’’. 

9 SEC. 412. MINING PLANS. 

10 Section 2(d)(2) of the Mineral Leasing Act (30 

11 U.S.C. 202a(2)) is amended— 

12 (1) by inserting ‘‘(A)’’ after ‘‘(2)’’; and 

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

14 ‘‘(B) The Secretary may establish a period of 

15 more than 40 years if the Secretary determines 

16 that— 

17 ‘‘(i) the longer period will ensure the max18 imum economic recovery of a coal deposit; or 

19 ‘‘(ii) the longer period is in the interest of 

20 the orderly, efficient, or economic development 

21 of a coal resource.’’. 

22 SEC. 413. PAYMENT OF ADVANCE ROYALTIES UNDER COAL 

23 LEASES. 

24 Section 7(b) of the Mineral Leasing Act (30 U.S.C. 

25 207(b)) is amended— 
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1 (1) in the first sentence, by striking ‘‘Each 

2 lease’’ and inserting the following: ‘‘(1) Each lease’’; 

3 (2) in the second sentence, by striking ‘‘The 

4 Secretary’’ and inserting the following: 

5 ‘‘(2) The Secretary’’; 

6 (3) in the third sentence, by striking ‘‘Such ad7 vance royalties’’ and inserting the following: 

8 ‘‘(3) Advance royalties described in paragraph (2)’’; 

9 (4) in the seventh sentence, by striking ‘‘The 

10 Secretary’’ and inserting the following: 

11 ‘‘(6) The Secretary’’; 

12 (5) in the last sentence, by striking ‘‘Nothing’’ 

13 and inserting the following: 

14 ‘‘(7) Nothing’’; 

15 (6) by striking the fourth, fifth, and sixth sen16 tences; and 

17 (7) by inserting after paragraph (3) (as des18 ignated by paragraph (3)) the following: 

19 ‘‘(4) The aggregate number of years during the pe20 riod of any lease for which advance royalties may be ac21 cepted in lieu of the condition of continued operation shall 

22 not exceed 20 years. 

23 ‘‘(5) The amount of any production royalty paid for 

24 any year shall be reduced (but not below 0) by the amount 

25 of any advance royalties paid under a lease described in 
346 

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1 paragraph (4) to the extent that the advance royalties 

2 have not been used to reduce production royalties for a 

3 prior year.’’. 

4 SEC. 414. ELIMINATION OF DEADLINE FOR SUBMISSION OF 

5 COAL LEASE OPERATION AND RECLAMATION 

6 PLAN. 

7 Section 7(c) of the Mineral Leasing Act (30 U.S.C. 

8 207(c)) is amended by striking ‘‘and not later than three 

9 years after a lease is issued,’’. 

10 SEC. 415. APPLICATION OF AMENDMENTS. 

11 (a) IN GENERAL.—The amendments made by this 

12 subtitle apply to any coal lease issued on or after the date 

13 of enactment of this Act. 

14 (b) COAL LEASES ISSUED BEFORE DATE OF ENACT15 MENT.—With respect to any coal lease issued before the 

16 date of enactment of this Act, the amendments made by 

17 this subtitle apply— 

18 (1) on the date of readjustment of the lease as 

19 provided under section 7(a) of the Mineral Leasing 

20 Act (30 U.S.C. 207); or 

21 (2) on request by the lessee, prior to that date. 

22 TITLE V—INDIAN ENERGY 

23 SEC. 501. SHORT TITLE. 

24 This title may be cited as the ‘‘Indian Tribal Energy 

25 Development and Self-Determination Act of 2005’’. 
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1 SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO2 GRAMS. 

3 (a) IN GENERAL.—Title II of the Department of En4 ergy Organization Act (42 U.S.C. 7131 et seq.) is amend5 ed by adding at the end the following: 

6 ‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

7 ‘‘SEC. 217. (a) ESTABLISHMENT.— 

8 ‘‘(1) There is established within the Depart9 ment an Office of Indian Energy Policy and Pro10 grams (referred to in this section as the ‘Office’). 

11 ‘‘(2) The Office shall be headed by a Director, 

12 to be appointed by the Secretary and compensated 

13 at a rate equal to that of level IV of the Executive 

14 Schedule under section 5315 of title 5, United 

15 States Code. 

16 ‘‘(b) DUTIES OF DIRECTOR.—The Director, in ac17 cordance with Federal policies promoting Indian self-de18 termination and the purposes of this Act, shall provide, 

19 direct, foster, coordinate, and implement energy planning, 

20 education, management, conservation, and delivery pro21 grams of the Department that— 

22 ‘‘(1) promote Indian tribal energy development, 

23 efficiency, and use; 

24 ‘‘(2) reduce or stabilize energy costs; 
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1 ‘‘(3) enhance and strengthen Indian tribal en2 ergy and economic infrastructure relating to natural 

3 resource development and electrification; and 

4 ‘‘(4) bring electrical power and service to In5 dian land and the homes of tribal members that 

6 are— 

7 ‘‘(A) located on Indian land; or 

8 ‘‘(B) acquired, constructed, or improved 

9 (in whole or in part) with Federal funds.’’. 

10 (b) CONFORMING AMENDMENTS.— 

11 (1) The table of contents of the Department of 

12 Energy Organization Act (42 U.S.C. prec. 7101) is 

13 amended— 

14 (A) in the item relating to section 209, by 

15 striking ‘‘SECTION’’ and inserting ‘‘SEC.’’; and 

16 (B) by striking the items relating to sec17 tions 213 through 216 and inserting the fol18 lowing: 

‘‘Sec. 213. Establishment of policy for National Nuclear Security 

Administration. 

‘‘Sec. 214. Establishment of security, counterintelligence, and intelligence policies. 

‘‘Sec. 215. Office of Counterintelligence. 

‘‘Sec. 216. Office of Intelligence. 

‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’. 

19 (2) Section 5315 of title 5, United States Code, 

20 is amended by inserting ‘‘Director, Office of Indian 

21 Energy Policy and Programs, Department of En-
349 

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1 ergy.’’ after ‘‘Inspector General, Department of En2 ergy.’’. 

3 SEC. 503. INDIAN ENERGY. 

4 (a) IN GENERAL.—Title XXVI of the Energy Policy 

5 Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 

6 as follows: 

7 ‘‘TITLE XXVI—INDIAN ENERGY 

8 ‘‘SEC. 2601. DEFINITIONS. 

9 ‘‘In this title: 

10 ‘‘(1) The term ‘Director’ means the Director of 

11 the Office of Indian Energy Policy and Programs, 

12 Department of Energy. 

13 ‘‘(2) The term ‘Indian land’ means— 

14 ‘‘(A) any land located within the bound15 aries of an Indian reservation, pueblo, or 

16 rancheria; 

17 ‘‘(B) any land not located within the 

18 boundaries of an Indian reservation, pueblo, or 

19 rancheria, the title to which is held— 

20 ‘‘(i) in trust by the United States for 

21 the benefit of an Indian tribe or an indi22 vidual Indian; 

23 ‘‘(ii) by an Indian tribe or an indi24 vidual Indian, subject to restriction against 
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1 alienation under laws of the United States; 

2 or 

3 ‘‘(iii) by a dependent Indian commu4 nity; and 

5 ‘‘(C) land that is owned by an Indian tribe 

6 and was conveyed by the United States to a 

7 Native Corporation pursuant to the Alaska Na8 tive Claims Settlement Act (43 U.S.C. 1601 et 

9 seq.), or that was conveyed by the United 

10 States to a Native Corporation in exchange for 

11 such land. 

12 ‘‘(3) The term ‘Indian reservation’ includes— 

13 ‘‘(A) an Indian reservation in existence in 

14 any State as of the date of enactment of this 

15 paragraph; 

16 ‘‘(B) a public domain Indian allotment; 

17 and 

18 ‘‘(C) a dependent Indian community lo19 cated within the borders of the United States, 

20 regardless of whether the community is lo21 cated— 

22 ‘‘(i) on original or acquired territory 

23 of the community; or 

24 ‘‘(ii) within or outside the boundaries 

25 of any particular State. 
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1 ‘‘(4)(A) The term ‘Indian tribe’ has the mean2 ing given the term in section 4 of the Indian Self3 Determination and Education Assistance Act (25 

4 U.S.C. 450b). 

5 ‘‘(B) For the purpose of paragraph (12) and 

6 sections 2603(b)(1)(C) and 2604, the term ‘Indian 

7 tribe’ does not include any Native Corporation. 

8 ‘‘(5) The term ‘integration of energy resources’ 

9 means any project or activity that promotes the loca10 tion and operation of a facility (including any pipe11 line, gathering system, transportation system or fa12 cility, or electric transmission or distribution facility) 

13 on or near Indian land to process, refine, generate 

14 electricity from, or otherwise develop energy re15 sources on, Indian land. 

16 ‘‘(6) The term ‘Native Corporation’ has the 

17 meaning given the term in section 3 of the Alaska 

18 Native Claims Settlement Act (43 U.S.C. 1602). 

19 ‘‘(7) The term ‘organization’ means a partner20 ship, joint venture, limited liability company, or 

21 other unincorporated association or entity that is es22 tablished to develop Indian energy resources. 

23 ‘‘(8) The term ‘Program’ means the Indian en24 ergy resource development program established 

25 under section 2602(a). 
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1 ‘‘(9) The term ‘Secretary’ means the Secretary 

2 of the Interior. 

3 ‘‘(10) The term ‘sequestration’ means the long4 term separation, isolation, or removal of greenhouse 

5 gases from the atmosphere, including through a bio6 logical or geologic method such as reforestation or 

7 an underground reservoir. 

8 ‘‘(11) The term ‘tribal energy resource develop9 ment organization’ means an organization of 2 or 

10 more entities, at least 1 of which is an Indian tribe, 

11 that has the written consent of the governing bodies 

12 of all Indian tribes participating in the organization 

13 to apply for a grant, loan, or other assistance under 

14 section 2602. 

15 ‘‘(12) The term ‘tribal land’ means any land or 

16 interests in land owned by any Indian tribe, title to 

17 which is held in trust by the United States, or is 

18 subject to a restriction against alienation under laws 

19 of the United States. 

20 ‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP21 MENT. 

22 ‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.— 

23 ‘‘(1) To assist Indian tribes in the development 

24 of energy resources and further the goal of Indian 

25 self-determination, the Secretary shall establish and 
353 

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1 implement an Indian energy resource development 

2 program to assist consenting Indian tribes and tribal 

3 energy resource development organizations in achiev4 ing the purposes of this title. 

5 ‘‘(2) In carrying out the Program, the Sec6 retary shall— 

7 ‘‘(A) provide development grants to Indian 

8 tribes and tribal energy resource development 

9 organizations for use in developing or obtaining 

10 the managerial and technical capacity needed to 

11 develop energy resources on Indian land, and to 

12 properly account for resulting energy produc13 tion and revenues; 

14 ‘‘(B) provide grants to Indian tribes and 

15 tribal energy resource development organiza16 tions for use in carrying out projects to pro17 mote the integration of energy resources, and to 

18 process, use, or develop those energy resources, 

19 on Indian land; and 

20 ‘‘(C) provide low-interest loans to Indian 

21 tribes and tribal energy resource development 

22 organizations for use in the promotion of en23 ergy resource development on Indian land and 

24 integration of energy resources. 
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1 ‘‘(3) There are authorized to be appropriated to 

2 carry out this subsection such sums as are necessary 

3 for each of fiscal years 2006 through 2016. 

4 ‘‘(b) DEPARTMENT OF ENERGY INDIAN ENERGY

5 EDUCATION PLANNING AND MANAGEMENT ASSISTANCE

6 PROGRAM.— 

7 ‘‘(1) The Director shall establish programs to 

8 assist consenting Indian tribes in meeting energy 

9 education, research and development, planning, and 

10 management needs. 

11 ‘‘(2) In carrying out this subsection, the Direc12 tor may provide grants, on a competitive basis, to an 

13 Indian tribe or tribal energy resource development 

14 organization for use in carrying out— 

15 ‘‘(A) energy, energy efficiency, and energy 

16 conservation programs; 

17 ‘‘(B) studies and other activities sup18 porting tribal acquisitions of energy supplies, 

19 services, and facilities, including the creation of 

20 tribal utilities to assist in securing electricity to 

21 promote electrification of homes and businesses 

22 on Indian land; 

23 ‘‘(C) planning, construction, development, 

24 operation, maintenance, and improvement of 

25 tribal electrical generation, transmission, and 
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1 distribution facilities located on Indian land; 

2 and 

3 ‘‘(D) development, construction, and inter4 connection of electric power transmission facili5 ties located on Indian land with other electric 

6 transmission facilities. 

7 ‘‘(3)(A) The Director shall develop a program 

8 to support and implement research projects that 

9 provide Indian tribes with opportunities to partici10 pate in carbon sequestration practices on Indian 

11 land, including— 

12 ‘‘(i) geologic sequestration; 

13 ‘‘(ii) forest sequestration; 

14 ‘‘(iii) agricultural sequestration; and 

15 ‘‘(iv) any other sequestration opportunities 

16 the Director considers to be appropriate. 

17 ‘‘(B) The activities carried out under subpara18 graph (A) shall be— 

19 ‘‘(i) coordinated with other carbon seques20 tration research and development programs 

21 conducted by the Secretary of Energy; 

22 ‘‘(ii) conducted to determine methods con23 sistent with existing standardized measurement 

24 protocols to account and report the quantity of 

25 carbon dioxide or other greenhouse gases se-
356 

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1 questered in projects that may be implemented 

2 on tribal land; and 

3 ‘‘(iii) reviewed periodically to collect and 

4 distribute to Indian tribes information on car5 bon sequestration practices that will increase 

6 the sequestration of carbon without threatening 

7 the social and economic well-being of Indian 

8 tribes. 

9 ‘‘(4)(A) The Director, in consultation with In10 dian tribes, may develop a formula for providing 

11 grants under this subsection. 

12 ‘‘(B) In providing a grant under this sub13 section, the Director shall give priority to any appli14 cation received from an Indian tribe with inadequate 

15 electric service (as determined by the Director). 

16 ‘‘(5) The Secretary of Energy may issue such 

17 regulations as the Secretary determines to be nec18 essary to carry out this subsection. 

19 ‘‘(6) There is authorized to be appropriated to 

20 carry out this subsection $20,000,000 for each of 

21 fiscal years 2006 through 2016. 

22 ‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE

23 PROGRAM.— 

24 ‘‘(1) Subject to paragraphs (2) and (4), the 

25 Secretary of Energy may provide loan guarantees 
357 

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1 (as defined in section 502 of the Federal Credit Re2 form Act of 1990 (2 U.S.C. 661a)) for an amount 

3 equal to not more than 90 percent of the unpaid 

4 principal and interest due on any loan made to an 

5 Indian tribe for energy development. 

6 ‘‘(2) In evaluating energy development pro7 posals for which the Secretary of Energy may pro8 vide a loan guarantee under paragraph (1), the Sec9 retary of Energy shall give priority to any project 

10 that uses a new technology, such as coal gasification, 

11 carbon capture and sequestration, or renewable en12 ergy-based electricity generation, if competing pro13 posals are similar with respect to the level at which 

14 the proposals meet or exceed the criteria established 

15 by the Secretary of Energy for the loan guarantee 

16 program. 

17 ‘‘(3) A loan guarantee under this subsection 

18 shall be made by— 

19 ‘‘(A) a financial institution subject to ex20 amination by the Secretary of Energy; or 

21 ‘‘(B) an Indian tribe, from funds of the In22 dian tribe. 

23 ‘‘(4) The aggregate outstanding amount guar24 anteed by the Secretary of Energy at any time under 

25 this subsection shall not exceed $2,000,000,000. 
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1 ‘‘(5) The Secretary of Energy may issue such 

2 regulations as the Secretary of Energy determines 

3 are necessary to carry out this subsection. 

4 ‘‘(6) There are authorized to be appropriated 

5 such sums as are necessary to carry out this sub6 section, to remain available until expended. 

7 ‘‘(7) Not later than 1 year after the date of en8 actment of this section, the Secretary of Energy 

9 shall submit to Congress a report on the financing 

10 requirements of Indian tribes for energy develop11 ment on Indian land. 

12 ‘‘(d) PREFERENCE.— 

13 ‘‘(1) In purchasing electricity or any other en14 ergy product or byproduct, a Federal agency or de15 partment may give preference to an energy and re16 source production enterprise, partnership, consor17 tium, corporation, or other type of business organi18 zation the majority of the interest in which is owned 

19 and controlled by 1 or more Indian tribes. 

20 ‘‘(2) In carrying out this subsection, a Federal 

21 agency or department shall not— 

22 ‘‘(A) pay more than the prevailing market 

23 price for an energy product or byproduct; or 

24 ‘‘(B) obtain less than prevailing market 

25 terms and conditions. 
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1 ‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA2 TION. 

3 ‘‘(a) GRANTS.—The Secretary may provide to Indian 

4 tribes, on an annual basis, grants for use in accordance 

5 with subsection (b). 

6 ‘‘(b) USE OF FUNDS.—Funds from a grant provided 

7 under this section may be used— 

8 ‘‘(1)(A) by an Indian tribe for the development 

9 of a tribal energy resource inventory or tribal energy 

10 resource on Indian land; 

11 ‘‘(B) by an Indian tribe for the development of 

12 a feasibility study or other report necessary to the 

13 development of energy resources on Indian land; 

14 ‘‘(C) by an Indian tribe (other than an Indian 

15 Tribe in the State of Alaska, except the Metlakatla 

16 Indian Community) for— 

17 ‘‘(i) the development and enforcement of 

18 tribal laws (including regulations) relating to 

19 tribal energy resource development; and 

20 ‘‘(ii) the development of technical infra21 structure to protect the environment under ap22 plicable law; or 

23 ‘‘(D) by a Native Corporation for the develop24 ment and implementation of corporate policies and 

25 the development of technical infrastructure to pro26 tect the environment under applicable law; and 
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•S 10 PCS 

1 ‘‘(2) by an Indian tribe for the training of em2 ployees that— 

3 ‘‘(A) are engaged in the development of en4 ergy resources on Indian land; or 

5 ‘‘(B) are responsible for protecting the en6 vironment. 

7 ‘‘(c) OTHER ASSISTANCE.— 

8 ‘‘(1) In carrying out the obligations of the 

9 United States under this title, the Secretary shall 

10 ensure, to the maximum extent practicable and to 

11 the extent of available resources, that on the request 

12 of an Indian tribe, the Indian tribe shall have avail13 able scientific and technical information and exper14 tise, for use in the regulation, development, and 

15 management of energy resources of the Indian tribe 

16 on Indian land. 

17 ‘‘(2) The Secretary may carry out paragraph 

18 (1)— 

19 ‘‘(A) directly, through the use of Federal 

20 officials; or 

21 ‘‘(B) indirectly, by providing financial as22 sistance to an Indian tribe to secure inde23 pendent assistance. 
361 

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1 ‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS2 OF-WAY INVOLVING ENERGY DEVELOPMENT 

3 OR TRANSMISSION. 

4 ‘‘(a) LEASES AND BUSINESS AGREEMENTS.—In ac5 cordance with this section— 

6 ‘‘(1) an Indian tribe may, at the discretion of 

7 the Indian tribe, enter into a lease or business 

8 agreement for the purpose of energy resource devel9 opment on tribal land, including a lease or business 

10 agreement for— 

11 ‘‘(A) exploration for, extraction of, proc12 essing of, or other development of the energy 

13 mineral resources of the Indian tribe located on 

14 tribal land; or 

15 ‘‘(B) construction or operation of— 

16 ‘‘(i) an electric generation, trans17 mission, or distribution facility located on 

18 tribal land; or 

19 ‘‘(ii) a facility to process or refine en20 ergy resources developed on tribal land; 

21 and 

22 ‘‘(2) a lease or business agreement described in 

23 paragraph (1) shall not require the approval of the 

24 Secretary under section 2103 of the Revised Stat25 utes (25 U.S.C. 81), or any other provision of law, 

26 if— 
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•S 10 PCS 

1 ‘‘(A) the lease or business agreement is ex2 ecuted pursuant to a tribal energy resource 

3 agreement approved by the Secretary under 

4 subsection (e); 

5 ‘‘(B) the term of the lease or business 

6 agreement does not exceed— 

7 ‘‘(i) 30 years; or 

8 ‘‘(ii) in the case of a lease for the pro9 duction of oil resources, gas resources, or 

10 both, 10 years and as long thereafter as oil 

11 or gas is produced in paying quantities; 

12 and 

13 ‘‘(C) the Indian tribe has entered into a 

14 tribal energy resource agreement with the Sec15 retary, as described in subsection (e), relating 

16 to the development of energy resources on tribal 

17 land (including the periodic review and evalua18 tion of the activities of the Indian tribe under 

19 the agreement, to be conducted pursuant to 

20 subsection (e)(2)(D)(i)). 

21 ‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC

22 TRANSMISSION OR DISTRIBUTION LINES.—An Indian 

23 tribe may grant a right-of-way over tribal land for a pipe24 line or an electric transmission or distribution line without 

25 approval by the Secretary if— 
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1 ‘‘(1) the right-of-way is executed in accordance 

2 with a tribal energy resource agreement approved by 

3 the Secretary under subsection (e); 

4 ‘‘(2) the term of the right-of-way does not ex5 ceed 30 years; 

6 ‘‘(3) the pipeline or electric transmission or dis7 tribution line serves— 

8 ‘‘(A) an electric generation, transmission, 

9 or distribution facility located on tribal land; or 

10 ‘‘(B) a facility located on tribal land that 

11 processes or refines energy resources developed 

12 on tribal land; and 

13 ‘‘(4) the Indian tribe has entered into a tribal 

14 energy resource agreement with the Secretary, as de15 scribed in subsection (e), relating to the development 

16 of energy resources on tribal land (including the 

17 periodic review and evaluation of the activities of the 

18 Indian tribe under an agreement described in sub19 paragraphs (D) and (E) of subsection (e)(2)). 

20 ‘‘(c) RENEWALS.—A lease or business agreement en21 tered into, or a right-of-way granted, by an Indian tribe 

22 under this section may be renewed at the discretion of the 

23 Indian tribe in accordance with this section. 

24 ‘‘(d) VALIDITY.—No lease, business agreement, or 

25 right-of-way relating to the development of tribal energy 
364 

•S 10 PCS 

1 resources under this section shall be valid unless the lease, 

2 business agreement, or right-of-way is authorized by a 

3 tribal energy resource agreement approved by the Sec4 retary under subsection (e)(2). 

5 ‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.— 

6 ‘‘(1) On the date on which regulations are pro7 mulgated under paragraph (8), an Indian tribe may 

8 submit to the Secretary for approval a tribal energy 

9 resource agreement governing leases, business agree10 ments, and rights-of-way under this section. 

11 ‘‘(2)(A) Not later than 1 year after the date on 

12 which the Secretary receives a tribal energy resource 

13 agreement from an Indian tribe under paragraph 

14 (1), or not later than 60 days after the Secretary re15 ceives a revised tribal energy resource agreement 

16 from an Indian tribe under paragraph (4)(C) (or a 

17 later date, as agreed to by the Secretary and the In18 dian tribe), the Secretary shall approve or dis19 approve the tribal energy resource agreement. 

20 ‘‘(B) The Secretary shall approve a tribal en21 ergy resource agreement submitted under paragraph 

22 (1) if— 

23 ‘‘(i) the Secretary determines that the In24 dian tribe has demonstrated that the Indian 

25 tribe has sufficient capacity to regulate the de-
365 

•S 10 PCS 

1 velopment of energy resources of the Indian 

2 tribe; 

3 ‘‘(ii) the tribal energy resource agreement 

4 includes provisions required under subpara5 graph (D); and 

6 ‘‘(iii) the tribal energy resource agreement 

7 includes provisions that, with respect to a lease, 

8 business agreement, or right-of-way under this 

9 section— 

10 ‘‘(I) ensure the acquisition of nec11 essary information from the applicant for 

12 the lease, business agreement, or right-of13 way; 

14 ‘‘(II) address the term of the lease or 

15 business agreement or the term of convey16 ance of the right-of-way; 

17 ‘‘(III) address amendments and re18 newals; 

19 ‘‘(IV) address the economic return to 

20 the Indian tribe under leases, business 

21 agreements, and rights-of-way; 

22 ‘‘(V) address technical or other rel23 evant requirements; 
366 

•S 10 PCS 

1 ‘‘(VI) establish requirements for envi2 ronmental review in accordance with sub3 paragraph (C); 

4 ‘‘(VII) ensure compliance with all ap5 plicable environmental laws, including a re6 quirement that each lease, business agree7 ment, and right-of-way state that the les8 see, operator, or right-of-way grantee shall 

9 comply with all such laws; 

10 ‘‘(VIII) identify final approval author11 ity; 

12 ‘‘(IX) provide for public notification of 

13 final approvals; 

14 ‘‘(X) establish a process for consulta15 tion with any affected States regarding off16 reservation impacts, if any, identified 

17 under subparagraph (C)(i); 

18 ‘‘(XI) describe the remedies for 

19 breach of the lease, business agreement, or 

20 right-of-way; 

21 ‘‘(XII) require each lease, business 

22 agreement, and right-of-way to include a 

23 statement that, if any of its provisions vio24 lates an express term or requirement of the 

25 tribal energy resource agreement pursuant 
367 

•S 10 PCS 

1 to which the lease, business agreement, or 

2 right-of-way was executed— 

3 ‘‘(aa) the provision shall be null 

4 and void; and 

5 ‘‘(bb) if the Secretary determines 

6 the provision to be material, the Sec7 retary may suspend or rescind the 

8 lease, business agreement, or right-of9 way or take other appropriate action 

10 that the Secretary determines to be in 

11 the best interest of the Indian tribe; 

12 ‘‘(XIII) require each lease, business 

13 agreement, and right-of-way to provide 

14 that it will become effective on the date on 

15 which a copy of the executed lease, busi16 ness agreement, or right-of-way is deliv17 ered to the Secretary in accordance with 

18 regulations promulgated under paragraph 

19 (8); 

20 ‘‘(XIV) include citations to tribal 

21 laws, regulations, or procedures, if any, 

22 that set out tribal remedies that must be 

23 exhausted before a petition may be sub24 mitted to the Secretary under paragraph 

25 (7)(B); 
368 

•S 10 PCS 

1 ‘‘(XV) specify the financial assistance, 

2 if any, to be provided by the Secretary to 

3 the Indian tribe to assist in implementa4 tion of the tribal energy resource agree5 ment, including environmental review of in6 dividual projects; and 

7 ‘‘(XVI) in accordance with the regula8 tions promulgated by the Secretary under 

9 paragraph (8), require that the Indian 

10 tribe, as soon as practicable after receipt 

11 of a notice by the Indian tribe, give written 

12 notice to the Secretary of— 

13 ‘‘(aa) any breach or other viola14 tion by another party of any provision 

15 in a lease, business agreement, or 

16 right-of-way entered into under the 

17 tribal energy resource agreement; and 

18 ‘‘(bb) any activity or occurrence 

19 under a lease, business agreement, or 

20 right-of-way that constitutes a viola21 tion of Federal or tribal environ22 mental laws. 

23 ‘‘(C) Tribal energy resource agreements 

24 submitted under paragraph (1) shall establish, 

25 and include provisions to ensure compliance 
369 

•S 10 PCS 

1 with, an environmental review process that, 

2 with respect to a lease, business agreement, or 

3 right-of-way under this section, provides for, at 

4 a minimum— 

5 ‘‘(i) the identification and evaluation 

6 of all significant environmental effects (as 

7 compared to a no-action alternative), in8 cluding effects on cultural resources; 

9 ‘‘(ii) the identification of proposed 

10 mitigation measures, if any, and incorpora11 tion of the mitigation measures into the 

12 lease, business agreement, or right-of-way; 

13 ‘‘(iii) a process for ensuring that— 

14 ‘‘(I) the public is informed of, 

15 and has an opportunity to comment 

16 on, the environmental impacts of the 

17 proposed action; and 

18 ‘‘(II) responses to relevant and 

19 substantive comments are provided, 

20 before tribal approval of the lease, 

21 business agreement, or right-of-way; 

22 ‘‘(iv) sufficient administrative support 

23 and technical capability to carry out the 

24 environmental review process; and 
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•S 10 PCS 

1 ‘‘(v) oversight by the Indian tribe of 

2 energy development activities by any other 

3 party under any lease, business agreement, 

4 or right-of-way entered into pursuant to 

5 the tribal energy resource agreement, to 

6 determine whether the activities are in 

7 compliance with the tribal energy resource 

8 agreement and applicable Federal environ9 mental laws. 

10 ‘‘(D) A tribal energy resource agreement 

11 between the Secretary and an Indian tribe 

12 under this subsection shall include— 

13 ‘‘(i) provisions requiring the Secretary 

14 to conduct a periodic review and evaluation 

15 to monitor the performance of the activi16 ties of the Indian tribe associated with the 

17 development of energy resources under the 

18 tribal energy resource agreement; and 

19 ‘‘(ii) if a periodic review and evalua20 tion, or an investigation, by the Secretary 

21 of any breach or violation described in a 

22 notice provided by the Indian tribe to the 

23 Secretary in accordance with subparagraph 

24 (B)(iii)(XVI), results in a finding by the 

25 Secretary of imminent jeopardy to a phys-
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1 ical trust asset arising from a violation of 

2 the tribal energy resource agreement or ap3 plicable Federal laws, provisions author4 izing the Secretary to take actions deter5 mined by the Secretary to be necessary to 

6 protect the asset, including reassumption 

7 of responsibility for activities associated 

8 with the development of energy resources 

9 on tribal land until the violation and any 

10 condition that caused the jeopardy are cor11 rected. 

12 ‘‘(E) Periodic review and evaluation under 

13 subparagraph (D) shall be conducted on an an14 nual basis, except that, after the third annual 

15 review and evaluation, the Secretary and the 

16 Indian tribe may mutually agree to amend the 

17 tribal energy resource agreement to authorize 

18 the review and evaluation under subparagraph 

19 (D) to be conducted once every 2 years. 

20 ‘‘(3) The Secretary shall provide notice and op21 portunity for public comment on tribal energy re22 source agreements submitted for approval under 

23 paragraph (1). 

24 ‘‘(4) If the Secretary disapproves a tribal en25 ergy resource agreement submitted by an Indian 
372 

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1 tribe under paragraph (1), the Secretary shall, not 

2 later than 10 days after the date of disapproval— 

3 ‘‘(A) notify the Indian tribe in writing of 

4 the basis for the disapproval; 

5 ‘‘(B) identify what changes or other ac6 tions are required to address the concerns of 

7 the Secretary; and 

8 ‘‘(C) provide the Indian tribe with an op9 portunity to revise and resubmit the tribal en10 ergy resource agreement. 

11 ‘‘(5) If an Indian tribe executes a lease or busi12 ness agreement, or grants a right-of-way, in accord13 ance with a tribal energy resource agreement ap14 proved under this subsection, the Indian tribe shall, 

15 in accordance with the process and requirements 

16 under regulations promulgated under paragraph (8), 

17 provide to the Secretary— 

18 ‘‘(A) a copy of the lease, business agree19 ment, or right-of-way document (including all 

20 amendments to and renewals of the document); 

21 and 

22 ‘‘(B) in the case of a tribal energy resource 

23 agreement or a lease, business agreement, or 

24 right-of-way that permits payments to be made 

25 directly to the Indian tribe, information and 
373 

•S 10 PCS 

1 documentation of those payments sufficient to 

2 enable the Secretary to discharge the trust re3 sponsibility of the United States to enforce the 

4 terms of, and protect the rights of the Indian 

5 tribe under, the lease, business agreement, or 

6 right-of-way. 

7 ‘‘(6)(A) In carrying out this section, the Sec8 retary shall— 

9 ‘‘(i) act in accordance with the trust re10 sponsibility of the United States relating to 

11 mineral and other trust resources; and 

12 ‘‘(ii) act in good faith and in the best in13 terests of the Indian tribes. 

14 ‘‘(B) Subject to the provisions of subsections 

15 (a)(2), (b), and (c) waiving the requirement of Sec16 retarial approval of leases, business agreements, and 

17 rights-of-way executed pursuant to tribal energy re18 source agreements approved under this section, and 

19 the provisions of subparagraph (D), nothing in this 

20 section shall absolve the United States from any re21 sponsibility to Indians or Indian tribes, including, 

22 but not limited to, those which derive from the trust 

23 relationship or from any treaties, statutes, and other 

24 laws of the United States, Executive Orders, or 
374 

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1 agreements between the United States and any In2 dian tribe. 

3 ‘‘(C) The Secretary shall continue to fulfill the 

4 trust obligation of the United States to ensure that 

5 the rights and interests of an Indian tribe are pro6 tected if— 

7 ‘‘(i) any other party to a lease, business 

8 agreement, or right-of-way violates any applica9 ble Federal law or the terms of any lease, busi10 ness agreement, or right-of-way under this sec11 tion; or 

12 ‘‘(ii) any provision in a lease, business 

13 agreement, or right-of-way violates the tribal 

14 energy resource agreement pursuant to which 

15 the lease, business agreement, or right-of-way 

16 was executed. 

17 ‘‘(D)(i) In this subparagraph, the term ‘nego18 tiated term’ means any term or provision that is ne19 gotiated by an Indian tribe and any other party to 

20 a lease, business agreement, or right-of-way entered 

21 into pursuant to an approved tribal energy resource 

22 agreement. 

23 ‘‘(ii) Notwithstanding subparagraph (B), the 

24 United States shall not be liable to any party (in25 cluding any Indian tribe) for any negotiated term of, 
375 

•S 10 PCS 

1 or any loss resulting from the negotiated terms of, 

2 a lease, business agreement, or right-of-way executed 

3 pursuant to and in accordance with a tribal energy 

4 resource agreement approved by the Secretary under 

5 paragraph (2). 

6 ‘‘(7)(A) In this paragraph, the term ‘interested 

7 party’ means any person (including an entity) that 

8 has demonstrated that an interest of the person has 

9 sustained, or will sustain, an adverse environmental 

10 impact as a result of the failure of an Indian tribe 

11 to comply with a tribal energy resource agreement of 

12 the Indian tribe approved by the Secretary under 

13 paragraph (2). 

14 ‘‘(B) After exhaustion of any tribal remedy, and 

15 in accordance with regulations promulgated by the 

16 Secretary under paragraph (8), an interested party 

17 may submit to the Secretary a petition to review the 

18 compliance by an Indian tribe with a tribal energy 

19 resource agreement of the Indian tribe approved by 

20 the Secretary under paragraph (2). 

21 ‘‘(C)(i) Not later than 20 days after the date on 

22 which the Secretary receives a petition under sub23 paragraph (B), the Secretary shall— 

24 ‘‘(I) provide to the Indian tribe a copy of 

25 the petition; and 
376 

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1 ‘‘(II) consult with the Indian tribe regard2 ing any noncompliance alleged in the petition. 

3 ‘‘(ii) Not later than 45 days after the date on 

4 which a consultation under clause (i)(II) takes place, 

5 the Indian tribe shall respond to any claim made in 

6 a petition under subparagraph (B). 

7 ‘‘(iii) The Secretary shall act in accordance with 

8 subparagraphs (D) and (E) only if the Indian 

9 tribe— 

10 ‘‘(I) denies, or fails to respond to, each 

11 claim made in the petition within the period de12 scribed in clause (ii); or 

13 ‘‘(II) fails, refuses, or is unable to cure or 

14 otherwise resolve each claim made in the peti15 tion within a reasonable period, as determined 

16 by the Secretary, after the expiration of the pe17 riod described in clause (ii). 

18 ‘‘(D)(i) Not later than 120 days after the date 

19 on which the Secretary receives a petition under sub20 paragraph (B), the Secretary shall determine wheth21 er the Indian tribe is not in compliance with the 

22 tribal energy resource agreement. 

23 ‘‘(ii) The Secretary may adopt procedures 

24 under paragraph (8) authorizing an extension of 

25 time, not to exceed 120 days, for making the deter-
377 

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1 mination under clause (i) in any case in which the 

2 Secretary determines that additional time is nec3 essary to evaluate the allegations of the petition. 

4 ‘‘(iii) Subject to subparagraph (E), if the Sec5 retary determines that the Indian tribe is not in 

6 compliance with the tribal energy resource agree7 ment, the Secretary shall take such action as the 

8 Secretary determines to be necessary to ensure com9 pliance with the tribal energy resource agreement, 

10 including— 

11 ‘‘(I) temporarily suspending any activity 

12 under a lease, business agreement, or right-of13 way under this section until the Indian tribe is 

14 in compliance with the approved tribal energy 

15 resource agreement; or 

16 ‘‘(II) rescinding approval of all or part of 

17 the tribal energy resource agreement, and if all 

18 of the agreement is rescinded, reassuming the 

19 responsibility for approval of any future leases, 

20 business agreements, or rights-of-way described 

21 in subsection (a) or (b). 

22 ‘‘(E) Before taking an action described in sub23 paragraph (D)(iii), the Secretary shall— 
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1 ‘‘(i) make a written determination that de2 scribes the manner in which the tribal energy 

3 resource agreement has been violated; 

4 ‘‘(ii) provide the Indian tribe with a writ5 ten notice of the violations together with the 

6 written determination; and 

7 ‘‘(iii) before taking any action described in 

8 subparagraph (D)(iii) or seeking any other rem9 edy, provide the Indian tribe with a hearing and 

10 a reasonable opportunity to attain compliance 

11 with the tribal energy resource agreement. 

12 ‘‘(F) An Indian tribe described in subparagraph 

13 (E) shall retain all rights to appeal under any regu14 lation promulgated by the Secretary. 

15 ‘‘(8) Not later than 1 year after the date of en16 actment of the Energy Policy Act of 2005, the Sec17 retary shall promulgate regulations that implement 

18 this subsection, including— 

19 ‘‘(A) criteria to be used in determining the 

20 capacity of an Indian tribe under paragraph 

21 (2)(B)(i), including the experience of the Indian 

22 tribe in managing natural resources and finan23 cial and administrative resources available for 

24 use by the Indian tribe in implementing the ap-
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1 proved tribal energy resource agreement of the 

2 Indian tribe; 

3 ‘‘(B) a process and requirements in accord4 ance with which an Indian tribe may— 

5 ‘‘(i) voluntarily rescind a tribal energy 

6 resource agreement approved by the Sec7 retary under this subsection; and 

8 ‘‘(ii) return to the Secretary the re9 sponsibility to approve any future lease, 

10 business agreement, or right-of-way under 

11 this subsection; 

12 ‘‘(C) provisions establishing the scope of, 

13 and procedures for, the periodic review and 

14 evaluation described in subparagraphs (D) and 

15 (E) of paragraph (2), including provisions for 

16 review of transactions, reports, site inspections, 

17 and any other review activities the Secretary 

18 determines to be appropriate; and 

19 ‘‘(D) provisions describing final agency ac20 tions after exhaustion of administrative appeals 

21 from determinations of the Secretary under 

22 paragraph (7). 

23 ‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this 

24 section affects the application of— 

25 ‘‘(1) any Federal environmental law; 
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1 ‘‘(2) the Surface Mining Control and Reclama2 tion Act of 1977 (30 U.S.C. 1201 et seq.); or 

3 ‘‘(3) except as otherwise provided in this title, 

4 the Indian Mineral Development Act of 1982 (25 

5 U.S.C. 2101 et seq.). 

6 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to the Secretary such 

8 sums as are necessary for each of fiscal years 2006 

9 through 2016 to carry out this section and to make grants 

10 or provide other appropriate assistance to Indian tribes 

11 to assist the Indian tribes in developing and implementing 

12 tribal energy resource agreements in accordance with this 

13 section. 

14 ‘‘SEC. 2605. FEDERAL POWER MARKETING ADMINISTRA15 TIONS. 

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

17 ‘‘(1) The term ‘‘Administrator’’ means the Ad18 ministrator of the Bonneville Power Administration 

19 and the Administrator of the Western Area Power 

20 Administration. 

21 ‘‘(2) The term ‘‘power marketing administra22 tion’’ means— 

23 ‘‘(A) the Bonneville Power Administration; 

24 ‘‘(B) the Western Area Power Administra25 tion; and 
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1 ‘‘(C) any other power administration the 

2 power allocation of which is used by or for the 

3 benefit of an Indian tribe located in the service 

4 area of the administration. 

5 ‘‘(b) ENCOURAGEMENT OF INDIAN TRIBAL ENERGY

6 DEVELOPMENT.—Each Administrator shall encourage In7 dian tribal energy development by taking such actions as 

8 the Administrators determine to be appropriate, including 

9 administration of programs of the power marketing ad10 ministration, in accordance with this section. 

11 ‘‘(c) ACTION BY ADMINISTRATORS.—In carrying out 

12 this section, in accordance with laws in existence on the 

13 date of enactment of the Energy Policy Act of 2005— 

14 ‘‘(1) each Administrator shall consider the 

15 unique relationship that exists between the United 

16 States and Indian tribes; 

17 ‘‘(2) power allocations from the Western Area 

18 Power Administration to Indian tribes may be used 

19 to meet firming and reserve needs of Indian-owned 

20 energy projects on Indian land; 

21 ‘‘(3) the Administrator of the Western Area 

22 Power Administration may purchase non-federally 

23 generated power from Indian tribes to meet the 

24 firming and reserve requirements of the Western 

25 Area Power Administration; and 
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1 ‘‘(4) each Administrator shall not— 

2 ‘‘(A) pay more than the prevailing market 

3 price for an energy product; or 

4 ‘‘(B) obtain less than prevailing market 

5 terms and conditions. 

6 ‘‘(d) ASSISTANCE FOR TRANSMISSION SYSTEM

7 USE.— 

8 ‘‘(1) An Administrator may provide technical 

9 assistance to Indian tribes seeking to use the high10 voltage transmission system for delivery of electric 

11 power. 

12 ‘‘(2) The costs of technical assistance provided 

13 under paragraph (1) shall be funded— 

14 ‘‘(A) by the Secretary of Energy using 

15 nonreimbursable funds appropriated for that 

16 purpose; or 

17 ‘‘(B) by any appropriate Indian tribe. 

18 ‘‘(e) POWER ALLOCATION STUDY.—Not later than 2 

19 years after the date of enactment of the Energy Policy 

20 Act of 2005, the Secretary of Energy shall submit to Con21 gress a report that— 

22 ‘‘(1) describes the use by Indian tribes of Fed23 eral power allocations of the power marketing ad24 ministration (or power sold by the Southwestern 

25 Power Administration) to or for the benefit of In-
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1 dian tribes in a service area of the power marketing 

2 administration; and 

3 ‘‘(2) identifies— 

4 ‘‘(A) the quantity of power allocated to, or 

5 used for the benefit of, Indian tribes by the 

6 Western Area Power Administration; 

7 ‘‘(B) the quantity of power sold to Indian 

8 tribes by any other power marketing adminis9 tration; and 

10 ‘‘(C) barriers that impede tribal access to 

11 and use of Federal power, including an assess12 ment of opportunities to remove those barriers 

13 and improve the ability of power marketing ad14 ministrations to deliver Federal power. 

15 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated to carry out this section 

17 $750,000, non-reimbursable, to remain available until ex18 pended. 

19 ‘‘SEC. 2606. WIND AND HYDROPOWER FEASIBILITY STUDY. 

20 ‘‘(a) STUDY.—The Secretary of Energy, in coordina21 tion with the Secretary of the Army and the Secretary, 

22 shall conduct a study of the cost and feasibility of devel23 oping a demonstration project that uses wind energy gen24 erated by Indian tribes and hydropower generated by the 
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1 Army Corps of Engineers on the Missouri River to supply 

2 firming power to the Western Area Power Administration. 

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

4 ‘‘(1) determine the feasibility of blending wind 

5 energy and hydropower generated from the Missouri 

6 River dams operated by the Army Corps of Engi7 neers; 

8 ‘‘(2) review historical and projected require9 ments for, and patterns of availability and use of, 

10 firming power; 

11 ‘‘(3) assess the wind energy resource potential 

12 on tribal land and projected cost savings through a 

13 blend of wind and hydropower over a 30-year period; 

14 ‘‘(4) determine seasonal capacity needs and as15 sociated transmission upgrades for integration of 

16 tribal wind generation; and 

17 ‘‘(5) include an independent tribal engineer as 

18 a study team member. 

19 ‘‘(c) REPORT.—Not later than 1 year after the date 

20 of enactment of the Energy Policy Act of 2005, the Sec21 retary and the Secretary of the Army shall submit to Con22 gress a report that describes the results of the study, in23 cluding— 

24 ‘‘(1) an analysis of the potential energy cost or 

25 benefits to the customers of the Western Area Power 
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1 Administration through the use of combined wind 

2 and hydropower; 

3 ‘‘(2) an evaluation of whether a combined wind 

4 and hydropower system can reduce reservoir fluctua5 tion, enhance efficient and reliable energy produc6 tion, and provide Missouri River management flexi7 bility; 

8 ‘‘(3) recommendations for a demonstration 

9 project to be carried out by the Western Area Power 

10 Administration, in partnership with an Indian tribal 

11 government or tribal energy resource development 

12 organization, to demonstrate the feasibility and po13 tential of using wind energy produced on Indian 

14 land to supply firming energy to the Western Area 

15 Power Administration or any other Federal power 

16 marketing agency; and 

17 ‘‘(4) an identification of— 

18 ‘‘(A) the economic and environmental costs 

19 of, or benefits to be realized through, a Fed20 eral-tribal partnership; and 

21 ‘‘(B) the manner in which a Federal-tribal 

22 partnership could contribute to the energy secu23 rity of the United States. 

24 ‘‘(d) FUNDING.— 
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1 ‘‘(1) AUTHORIZATION OF APPROPRIATIONS.— 

2 There is authorized to be appropriated to carry out 

3 this section $1,000,000, to remain available until ex4 pended. 

5 ‘‘(2) NONREIMBURSABILITY.—Costs incurred 

6 by the Secretary in carrying out this section shall be 

7 nonreimbursable.’’. 

8 (b) CONFORMING AMENDMENTS.—The table of con9 tents for the Energy Policy Act of 1992 is amended by 

10 striking the items relating to title XXVI and inserting the 

11 following: 

‘‘Sec. 2601. Definitions. 

‘‘Sec. 2602. Indian tribal energy resource development. 

‘‘Sec. 2603. Indian tribal energy resource regulation. 

‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy development or transmission. 

‘‘Sec. 2605. Federal Power Marketing Administrations. 

‘‘Sec. 2606. Wind and hydropower feasibility study.’’. 

12 SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT 

13 AND ELECTRIFICATION. 

14 (a) TRANSMISSION LINE PROJECT.—The Dine 

15 Power Authority, an enterprise of the Navajo Nation, shall 

16 be eligible to receive grants and other assistance under 

17 section 217 of the Department of Energy Organization 

18 Act, as added by section 502, and section 2602 of the En19 ergy Policy Act of 1992, as amended by this Act, for ac20 tivities associated with the development of a transmission 

21 line from the Four Corners Area to southern Nevada, in22 cluding related power generation opportunities. 
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1 (b) NAVAJO ELECTRIFICATION.—Section 602 of 

2 Public Law 106-511 (114 Stat. 2376) is amended— 

3 (1) in subsection (a)— 

4 (A) in the first sentence, by striking ‘‘5- 

5 year’’ and inserting ‘‘10-year’’; and 

6 (B) in the third sentence, by striking 

7 ‘‘2006’’ and inserting ‘‘2011’’; and 

8 (2) in the first sentence of subsection (e) by 

9 striking ‘‘2006’’ and inserting ‘‘2011’’. 

10 SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED 

11 HOUSING. 

12 (a) IN GENERAL.—The Secretary of Housing and 

13 Urban Development shall promote energy conservation in 

14 housing that is located on Indian land and assisted with 

15 Federal resources through— 

16 (1) the use of energy-efficient technologies and 

17 innovations (including the procurement of energy-ef18 ficient refrigerators and other appliances); 

19 (2) the promotion of shared savings contracts; 

20 and 

21 (3) the use and implementation of such other 

22 similar technologies and innovations as the Secretary 

23 of Housing and Urban Development considers to be 

24 appropriate. 
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1 (b) AMENDMENT.—Section 202(2) of the Native 

2 American Housing and Self-Determination Act of 1996 

3 (25 U.S.C. 4132(2)) is amended by inserting ‘‘improve4 ment to achieve greater energy efficiency,’’ after ‘‘plan5 ning,’’. 

6 SEC. 506. CONSULTATION WITH INDIAN TRIBES. 

7 In carrying out this Act and the amendments made 

8 by this Act, the Secretary of Energy and the Secretary 

9 shall, as appropriate and to the maximum extent prac10 ticable, involve and consult with Indian tribes in a manner 

11 that is consistent with the Federal trust and the govern12 ment-to-government relationships between Indian tribes 

13 and the United States. 

14 TITLE VI—NUCLEAR MATTERS 

15 Subtitle A—Price-Anderson Act 

16 Amendments 

17 SEC. 601. SHORT TITLE. 

18 This subtitle may be cited as the ‘‘Price-Anderson 

19 Amendments Act of 2005’’. 

20 SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY. 

21 (a) INDEMNIFICATION OF NUCLEAR REGULATORY

22 COMMISSION LICENSEES.—Section 170 c. of the Atomic 

23 Energy Act of 1954 (42 U.S.C. 2210(c)) is amended— 

24 (1) in the subsection heading, by striking ‘‘LI25 CENSES’’ and inserting ‘‘LICENSEES’’; and 
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1 (2) by striking ‘‘December 31, 2003’’ each 

2 place it appears and inserting ‘‘December 31, 

3 2025’’. 

4 (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY

5 CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En6 ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended 

7 by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem8 ber 31, 2025’’. 

9 (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL

10 INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 

11 of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au12 gust 1, 2002’’ each place it appears and inserting ‘‘Decem13 ber 31, 2025’’. 

14 SEC. 603. MAXIMUM ASSESSMENT. 

15 Section 170 of the Atomic Energy Act of 1954 (42 

16 U.S.C. 2210) is amended— 

17 (1) in the second proviso of the third sentence 

18 of subsection b.(1)— 

19 (A) by striking ‘‘$63,000,000’’ and insert20 ing ‘‘$95,800,000’’; and 

21 (B) by striking ‘‘$10,000,000 in any 1 

22 year’’ and inserting ‘‘$15,000,000 in any 1 year 

23 (subject to adjustment for inflation under sub24 section t.)’’; and 

25 (2) in subsection t.(1)— 
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1 (A) by inserting ‘‘total and annual’’ after 

2 ‘‘amount of the maximum’’; 

3 (B) by striking ‘‘the date of the enactment 

4 of the Price-Anderson Amendments Act of 

5 1988’’ and inserting ‘‘August 20, 2003’’; and 

6 (C) in subparagraph (A), by striking ‘‘such 

7 date of enactment’’ and inserting ‘‘August 20, 

8 2003’’. 

9 SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT. 

10 (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY

11 CONTRACTORS.—Section 170 d. of the Atomic Energy Act 

12 of 1954 (42 U.S.C. 2210(d)) (as amended by section 

13 602(b)) is amended by striking paragraph (2) and insert14 ing the following: 

15 ‘‘(2) In an agreement of indemnification entered into 

16 under paragraph (1), the Secretary— 

17 ‘‘(A) may require the contractor to provide and 

18 maintain financial protection of such a type and in 

19 such amounts as the Secretary determines to be ap20 propriate to cover public liability arising out of or in 

21 connection with the contractual activity; and 

22 ‘‘(B) shall indemnify the persons indemnified 

23 against the liability above the amount of the finan24 cial protection required, in the amount of 

25 $10,000,000,000 (subject to adjustment for inflation 
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1 under subsection t.) in the aggregate, for all persons 

2 indemnified in connection with the contract and for 

3 each nuclear incident, including such legal expenses 

4 incurred by the contractor as are approved by the 

5 Secretary.’’. 

6 (b) CONTRACT AMENDMENTS.—Section 170 d. of the 

7 Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) (as 

8 amended by section 602(b)) is amended by striking para9 graph (3) and inserting the following: 

10 ‘‘(3) All agreements of indemnification under which 

11 the Department of Energy (or predecessor agencies) may 

12 be required to indemnify any person under this section 

13 shall be considered to be amended, on the date of enact14 ment of the Price-Anderson Amendments Act of 2005, to 

15 reflect the amount of indemnity for public liability and any 

16 applicable financial protection required of the contractor 

17 under this subsection.’’. 

18 (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 

19 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 

20 amended— 

21 (1) by striking ‘‘the maximum amount of finan22 cial protection required under subsection b. or’’; and 

23 (2) by striking ‘‘paragraph (3) of subsection d., 

24 whichever amount is more’’ and inserting ‘‘para25 graph (2) of subsection d.’’. 
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1 SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES. 

2 (a) AMOUNT OF INDEMNIFICATION.—Section 170 

3 d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 

4 2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 

5 inserting ‘‘$500,000,000’’. 

6 (b) LIABILITY LIMIT.—Section 170 e.(4) of the 

7 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 

8 amended by striking ‘‘$100,000,000’’ and inserting 

9 ‘‘$500,000,000’’. 

10 SEC. 606. REPORTS. 

11 Section 170 p. of the Atomic Energy Act of 1954 (42 

12 U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 

13 and inserting ‘‘December 31, 2021’’. 

14 SEC. 607. INFLATION ADJUSTMENT. 

15 Section 170 t. of the Atomic Energy Act of 1954 (42 

16 U.S.C. 2210(t)) (as amended by section 603(2)) is amend17 ed— 

18 (1) by redesignating paragraph (2) as para19 graph (3); and 

20 (2) by inserting after paragraph (1) the fol21 lowing: 

22 ‘‘(2) The Secretary shall adjust the amount of indem23 nification provided under an agreement of indemnification 

24 under subsection d. not less than once during each 5-year 

25 period following July 1, 2003, in accordance with the ag-
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1 gregate percentage change in the Consumer Price Index 

2 since— 

3 ‘‘(A) that date, in the case of the first adjust4 ment under this paragraph; or 

5 ‘‘(B) the previous adjustment under this para6 graph.’’. 

7 SEC. 608. TREATMENT OF MODULAR REACTORS. 

8 Section 170 b. of the Atomic Energy Act of 1954 (42 

9 U.S.C. 2210(b)) (as amended by section 603) is amended 

10 by adding at the end the following: 

11 ‘‘(5)(A) For purposes of this section only, the Com12 mission shall consider a combination of facilities described 

13 in subparagraph (B) to be a single facility having a rated 

14 capacity of 100,000 electrical kilowatts or more. 

15 ‘‘(B) A combination of facilities referred to in sub16 paragraph (A) is 2 or more facilities located at a single 

17 site, each of which has a rated capacity of not less than 

18 100,000 electrical kilowatts and not more than 300,000 

19 electrical kilowatts, with a combined rated capacity of not 

20 more than 1,300,000 electrical kilowatts.’’. 

21 SEC. 609. APPLICABILITY. 

22 The amendments made by sections 603, 604, and 605 

23 do not apply to a nuclear incident that occurs before the 

24 date of enactment of this Act. 
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1 SEC. 610. CIVIL PENALTIES. 

2 (a) REPEAL OF AUTOMATIC REMISSION.—Section 

3 234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 

4 2282a(b)(2)) is amended by striking the last sentence. 

5 (b) LIMITATION FOR NOT-FOR-PROFIT INSTITU6 TIONS.—Section 234A of the Atomic Energy Act of 1954 

7 (42 U.S.C. 2282a) is amended by striking subsection d. 

8 and inserting the following: 

9 ‘‘d.(1) Notwithstanding subsection a., in the case of 

10 any not-for-profit contractor, subcontractor, or supplier, 

11 the total amount of civil penalties paid under subsection 

12 a. may not exceed the total amount of fees paid within 

13 any 1-year period (as determined by the Secretary) under 

14 the contract under which the violation occurs. 

15 ‘‘(2) In this section, the term ‘not-for-profit’ means 

16 that no part of the net earnings of the contractor, subcon17 tractor, or supplier inures to the benefit of any natural 

18 person or for-profit artificial person.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall not apply to any violation of the Atomic 

21 Energy Act of 1954 (42 U.S.C. 2011 et seq.) occurring 

22 under a contract entered into before the date of enactment 

23 of this Act. 
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1 Subtitle B—General Nuclear 

2 Matters 

3 SEC. 621. MEDICAL ISOTOPE PRODUCTION. 

4 Section 134 of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2160d) is amended— 

6 (1) by redesignating subsections a. and b. as 

7 subsection b. and a., respectively, and moving the 

8 subsections so as to appear in alphabetical order; 

9 (2) in subsection a. (as redesignated by para10 graph (1)), by striking ‘‘a. As used in this section— 

11 ’’ and inserting the following: 

12 ‘‘a. DEFINITIONS.—In this section—’’; 

13 (3) in subsection b. (as redesignated by para14 graph (1), by striking ‘‘b. The Commission’’ and in15 serting the following: 

16 ‘‘b. RESTRICTIONS ON EXPORTS.—Except as pro17 vided in subsection c., the Commission’’; and 

18 (4) by adding at the end the following: 

19 ‘‘c. MEDICAL ISOTOPE PRODUCTION.— 

20 ‘‘(1) DEFINITIONS.—In this subsection: 

21 ‘‘(A) MEDICAL ISOTOPE.—The term ‘med22 ical isotope’ includes Molybdenum 99, Iodine 

23 131, Xenon 133, and other radioactive mate24 rials used to produce a radiopharmaceutical for 
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1 diagnostic, therapeutic procedures or for re2 search and development. 

3 ‘‘(B) RADIOPHARMACEUTICAL.—The term 

4 ‘radiopharmaceutical’ means a radioactive iso5 tope that— 

6 ‘‘(i) contains byproduct material com7 bined with chemical or biological material; 

8 and 

9 ‘‘(ii) is designed to accumulate tempo10 rarily in a part of the body for— 

11 ‘‘(I) therapeutic purposes; or 

12 ‘‘(II) enabling the production of 

13 a useful image for use in a diagnosis 

14 of a medical condition. 

15 ‘‘(C) RECIPIENT COUNTRY.—The term ‘re16 cipient country’ means Canada, Belgium, 

17 France, Germany, and the Netherlands. 

18 ‘‘(2) LICENSES.—The Commission may issue a 

19 license authorizing the export (including shipment to 

20 and use at intermediate and ultimate consignees 

21 specified in the license) to a recipient country of 

22 highly enriched uranium for medical isotope produc23 tion if, in addition to any other requirements of this 

24 Act (except subsection b.), the Commission deter25 mines that— 
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1 ‘‘(A) a recipient country that supplies an 

2 assurance letter to the United States in connec3 tion with the consideration by the Commission 

4 of the export license application has informed 

5 the United States that any intermediate con6 signees and the ultimate consignee specified in 

7 the application are required to use the highly 

8 enriched uranium solely to produce medical iso9 topes; and 

10 ‘‘(B) the highly enriched uranium for med11 ical isotope production will be irradiated only in 

12 a reactor in a recipient country that— 

13 ‘‘(i) uses an alternative nuclear reac14 tor fuel; or 

15 ‘‘(ii) is the subject of an agreement 

16 with the United States to convert to an al17 ternative nuclear reactor fuel when alter18 native nuclear reactor fuel can be used in 

19 the reactor. 

20 ‘‘(3) REVIEW OF PHYSICAL PROTECTION RE21 QUIREMENTS.— 

22 ‘‘(A) IN GENERAL.—The Commission shall 

23 review the adequacy of physical protection re24 quirements that, as of the date of an applica25 tion under paragraph (2), are applicable to the 
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1 transportation and storage of highly enriched 

2 uranium for medical isotope production or con3 trol of residual material after irradiation and 

4 extraction of medical isotopes. 

5 ‘‘(B) IMPOSITION OF ADDITIONAL RE6 QUIREMENTS.—If the Commission determines 

7 that additional physical protection requirements 

8 are necessary (including a limit on the quantity 

9 of highly enriched uranium that may be con10 tained in a single shipment), the Commission 

11 shall impose the requirements as license condi12 tions or through other appropriate means. 

13 ‘‘(4) FIRST REPORT TO CONGRESS.— 

14 ‘‘(A) NAS STUDY.—The Secretary shall 

15 enter into an arrangement with the National 

16 Academy of Sciences under which the National 

17 Academy of Sciences shall conduct a study to 

18 determine— 

19 ‘‘(i) the feasibility of procuring sup20 plies of medical isotopes from commercial 

21 sources that do not use highly enriched 

22 uranium; 

23 ‘‘(ii) the current and projected de24 mand and availability of medical isotopes 

25 in regular current domestic use; 
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1 ‘‘(iii) the progress being made by the 

2 Department of Energy and other agencies 

3 and entities to eliminate all use of highly 

4 enriched uranium in reactor fuel, reactor 

5 targets, and medical isotope production fa6 cilities; and 

7 ‘‘(iv) the potential cost differential in 

8 medical isotope production in the reactors 

9 and target processing facilities if the prod10 ucts were derived from production systems 

11 that do not involve fuels and targets with 

12 highly enriched uranium. 

13 ‘‘(B) FEASIBILITY.—For the purpose of 

14 this subsection, the use of low enriched uranium 

15 to produce medical isotopes shall be determined 

16 to be feasible if— 

17 ‘‘(i) low enriched uranium targets 

18 have been developed and demonstrated for 

19 use in the reactors and target processing 

20 facilities that produce significant quantities 

21 of medical isotopes to serve United States 

22 needs for such isotopes; 

23 ‘‘(ii) sufficient quantities of medical 

24 isotopes are available from low enriched 
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1 uranium targets and fuel to meet United 

2 States domestic needs; and 

3 ‘‘(iii) the average anticipated total 

4 cost increase from production of medical 

5 isotopes in the facilities without use of 

6 highly enriched uranium is less than 10 

7 percent. 

8 ‘‘(C) REPORT BY THE SECRETARY.—Not 

9 later than 5 years after the date of enactment 

10 of the Energy Policy Act of 2005, the Secretary 

11 shall submit to Congress a report that— 

12 ‘‘(i) contains the findings of the Na13 tional Academy of Sciences made in the 

14 study under subparagraph (A); and 

15 ‘‘(ii) discloses the existence of any 

16 commitments from commercial producers 

17 to provide, not later than the date that is 

18 4 years after the date of submission of the 

19 report, domestic requirements for medical 

20 isotopes without use of highly enriched 

21 uranium consistent with the feasibility cri22 teria described in subparagraph (B). 

23 ‘‘(5) SECOND REPORT TO CONGRESS.—If the 

24 National Academy of Sciences determines in the 

25 study under paragraph (4)(A) that the procurement 
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1 of supplies of medical isotopes from commercial 

2 sources that do not use highly enriched uranium is 

3 feasible, but the Secretary is unable to report the ex4 istence of commitments under paragraph (4)(C)(ii), 

5 not later than the date that is 6 years after the date 

6 of enactment of the Energy Policy Act of 2005, the 

7 Secretary shall submit to Congress a report that de8 scribes options for developing domestic supplies of 

9 medical isotopes in quantities that are adequate to 

10 meet domestic demand without the use of highly en11 riched uranium consistent with the cost increase de12 scribed in paragraph (4)(B)(iii). 

13 ‘‘(6) CERTIFICATION.—At such time as com14 mercial facilities that do not use highly enriched 

15 uranium are capable of meeting domestic require16 ments for medical isotopes, within the cost increase 

17 described in paragraph (4)(B)(iii) and without im18 pairing the reliable supply of medical isotopes for 

19 domestic use, the Secretary shall submit to Congress 

20 a certification to that effect. 

21 ‘‘(7) TERMINATION OF REVIEW.—After the Sec22 retary submits a certification under paragraph (6), 

23 the Commission shall, by rule, terminate the review 

24 by the Commission of export license applications 

25 under this subsection.’’. 
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1 SEC. 622. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA2 DIOACTIVE WASTE. 

3 (a) RESPONSIBILITY FOR ACTIVITIES TO PROVIDE

4 STORAGE FACILITY.—The Secretary shall provide to Con5 gress official notification of the final designation of an en6 tity within the Department to have the responsibility of 

7 completing activities needed to provide a facility for safely 

8 disposing of all greater-than-Class C low-level radioactive 

9 waste. 

10 (b) REPORTS AND PLANS.— 

11 (1) REPORT ON PERMANENT DISPOSAL FACIL12 ITY.— 

13 (A) PLAN REGARDING COST AND SCHED14 ULE FOR COMPLETION OF EIS AND ROD.—Not 

15 later than 1 year after the date of enactment of 

16 this Act, the Secretary, in consultation with 

17 Congress, shall submit to Congress a report 

18 containing an estimate of the cost and a pro19 posed schedule to complete an environmental 

20 impact statement and record of decision for a 

21 permanent disposal facility for greater-than22 Class C radioactive waste. 

23 (B) ANALYSIS OF ALTERNATIVES.—Before 

24 the Secretary makes a final decision on the dis25 posal alternative or alternatives to be imple26 mented, the Secretary shall— 
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1 (i) submit to Congress a report that 

2 describes all alternatives under consider3 ation, including all information required in 

4 the comprehensive report making rec5 ommendations for ensuring the safe dis6 posal of all greater-than-Class C low-level 

7 radioactive waste that was submitted by 

8 the Secretary to Congress in February 

9 1987; and 

10 (ii) await action by Congress. 

11 (2) SHORT-TERM PLAN FOR RECOVERY AND

12 STORAGE.— 

13 (A) IN GENERAL.—Not later than 180 

14 days after the date of enactment of this Act, 

15 the Secretary shall submit to Congress a plan 

16 to ensure the continued recovery and storage of 

17 greater-than-Class C low-level radioactive sealed 

18 sources that pose a security threat until a per19 manent disposal facility is available. 

20 (B) CONTENTS.—The plan shall address 

21 estimated cost, resource, and facility needs. 

22 SEC. 623. PROHIBITION ON NUCLEAR EXPORTS TO COUN23 TRIES THAT SPONSOR TERRORISM. 

24 (a) IN GENERAL.—Section 129 of the Atomic Energy 

25 Act of 1954 (42 U.S.C. 2158) is amended— 
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1 (1) by inserting ‘‘a.’’ before ‘‘No nuclear mate2 rials and equipment’’; and 

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

4 ‘‘b.(1)(A) Notwithstanding any other provision of 

5 law, including section 121, and except as provided in para6 graphs (2) and (3), no nuclear materials and equipment 

7 or sensitive nuclear technology, including items and assist8 ance authorized by section 57 b. and regulated under part 

9 810 of title 10, Code of Federal Regulations (or a suc10 cessor regulation), and nuclear-related items on the Com11 merce Control List maintained under part 774 of title 15 

12 of the Code of Federal Regulations (or a successor regula13 tion), shall be exported or reexported, or transferred or 

14 retransferred, whether directly or indirectly, and no Fed15 eral agency shall issue any license, approval, or authoriza16 tion for the export or reexport, or transfer, or retransfer, 

17 whether directly or indirectly, of the items or assistance 

18 described in this paragraph to any country the government 

19 of which has been identified by the Secretary of State as 

20 engaged in state sponsorship of terrorist activities. 

21 ‘‘(B) Countries described in subparagraph (A) spe22 cifically include any country the government of which has 

23 been determined by the Secretary of State to have repeat24 edly provided support for acts of international terrorism 

25 under— 
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1 ‘‘(i) section 620A(a) of the Foreign Assistance 

2 Act of 1961 (22 U.S.C. 2371(a)); 

3 ‘‘(ii) section 6(j)(1) of the Export Administra4 tion Act of 1979 (50 U.S.C. App. 2405(j)(1)); or 

5 ‘‘(iii) section 40(d) of the Arms Export Control 

6 Act (22 U.S.C. 2780(d)). 

7 ‘‘(2) This subsection does not apply to exports, reex8 ports, transfers, or retransfers of radiation monitoring 

9 technologies, surveillance equipment, seals, cameras, tam10 per-indication devices, nuclear detectors, monitoring sys11 tems, or equipment necessary to safely store, transport, 

12 or remove hazardous materials, whether such items, serv13 ices, or information are regulated by the Department of 

14 Energy, the Department of Commerce, or the Commis15 sion, except to the extent that the technologies, equipment, 

16 seals, cameras, devices, detectors, or systems are available 

17 for use in the design or construction of nuclear reactors 

18 or nuclear weapons. 

19 ‘‘(3) The President may waive the application of 

20 paragraph (1) to a country if the President determines 

21 and certifies to Congress that— 

22 ‘‘(A) the waiver will not result in any increased 

23 risk that the country receiving the waiver will ac24 quire nuclear weapons, nuclear reactors, or any ma25 terials or components of nuclear weapons; and 
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1 ‘‘(B)(i) the government of the country has not 

2 within the preceding 12-month period willfully aided 

3 or abetted the international proliferation of nuclear 

4 explosive devices to individuals or groups or willfully 

5 aided and abetted an individual or groups in acquir6 ing unsafeguarded nuclear materials; 

7 ‘‘(ii) in the judgment of the President, the gov8 ernment of the country has provided adequate, 

9 verifiable assurances that the country will cease its 

10 support for acts of international terrorism; 

11 ‘‘(iii) the waiver of paragraph (1) is in the vital 

12 national security interest of the United States; or 

13 ‘‘(iv) the waiver of paragraph (1) is essential to 

14 prevent or respond to a serious radiological hazard 

15 in the country receiving the waiver that may or does 

16 threaten public health and safety.’’. 

17 (b) APPLICABILITY TO EXPORTS APPROVED FOR

18 TRANSFER BUT NOT TRANSFERRED.—Subsection b. of 

19 section 129 of Atomic Energy Act of 1954 (as added by 

20 subsection (a)), shall apply with respect to exports that 

21 have been approved for transfer as of the date of enact22 ment of this Act but have not yet been transferred as of 

23 that date. 
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1 SEC. 624. DECOMMISSIONING PILOT PROGRAM. 

2 (a) PILOT PROGRAM.—The Secretary shall establish 

3 a decommissioning pilot program under which the Sec4 retary shall decommission and decontaminate the sodium5 cooled fast breeder experimental test-site reactor located 

6 in northwest Arkansas, in accordance with the decommis7 sioning activities contained in the report of the Depart8 ment relating to the reactor, dated August 31, 1998. 

9 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to the Secretary to carry 

11 out this section $16,000,000. 

12 Subtitle C—Next Generation 

13 Nuclear Plant Project 

14 SEC. 631. PROJECT ESTABLISHMENT. 

15 (a) ESTABLISHMENT.—The Secretary shall establish 

16 a project to be known as the ‘‘Next Generation Nuclear 

17 Plant Project’’ (referred to in this subtitle as the 

18 ‘‘Project’’). 

19 (b) CONTENT.—The Project shall consist of the re20 search, development, design, construction, and operation 

21 of a prototype plant, including a nuclear reactor that— 

22 (1) is based on research and development activi23 ties supported by the Generation IV Nuclear Energy 

24 Systems Initiative under section 942(d); and 

25 (2) shall be used— 

26 (A) to generate electricity; 
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1 (B) to produce hydrogen; or 

2 (C) both to generate electricity and to 

3 produce hydrogen. 

4 SEC. 632. PROJECT MANAGEMENT. 

5 (a) DEPARTMENTAL MANAGEMENT.— 

6 (1) IN GENERAL.—The Project shall be man7 aged in the Department by the Office of Nuclear 

8 Energy, Science, and Technology. 

9 (2) GENERATION IV NUCLEAR ENERGY SYS10 TEMS PROGRAM.—The Secretary may combine the 

11 Project with the Generation IV Nuclear Energy Sys12 tems Initiative. 

13 (3) EXISTING DOE PROJECT MANAGEMENT EX14 PERTISE.—The Secretary may utilize capabilities for 

15 review of construction projects for advanced sci16 entific facilities within the Office of Science to track 

17 the progress of the Project. 

18 (b) LABORATORY MANAGEMENT.— 

19 (1) LEAD LABORATORY.—The Idaho National 

20 Laboratory shall be the lead National Laboratory for 

21 the Project and shall collaborate with other National 

22 Laboratories, institutions of higher education, other 

23 research institutes, industrial researchers, and inter24 national researchers to carry out the Project. 

25 (2) INDUSTRIAL PARTNERSHIPS.— 
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1 (A) IN GENERAL.—The Idaho National 

2 Laboratory shall organize a consortium of ap3 propriate industrial partners that will carry out 

4 cost-shared research, development, design, and 

5 construction activities, and operate research fa6 cilities, on behalf of the Project. 

7 (B) COST-SHARING.—Activities of indus8 trial partners funded by the Project shall be 

9 cost-shared in accordance with section 1002. 

10 (C) PREFERENCE.—Preference in deter11 mining the final structure of the consortium or 

12 any partnerships under this subtitle shall be 

13 given to a structure (including designating as a 

14 lead industrial partner an entity incorporated in 

15 the United States) that retains United States 

16 technological leadership in the Project while 

17 maximizing cost sharing opportunities and 

18 minimizing Federal funding responsibilities. 

19 (3) PROTOTYPE PLANT SITING.—The prototype 

20 nuclear reactor and associated plant shall be sited at 

21 the Idaho National Laboratory in Idaho. 

22 (4) REACTOR TEST CAPABILITIES.—The 

23 Project shall use, if appropriate, reactor test capa24 bilities at the Idaho National Laboratory. 
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1 (5) OTHER LABORATORY CAPABILITIES.—The 

2 Project may use, if appropriate, facilities at other 

3 National Laboratories. 

4 SEC. 633. PROJECT ORGANIZATION. 

5 (a) MAJOR PROJECT ELEMENTS.—The Project shall 

6 consist of the following major program elements: 

7 (1) High-temperature hydrogen production 

8 technology development and validation. 

9 (2) Energy conversion technology development 

10 and validation. 

11 (3) Nuclear fuel development, characterization, 

12 and qualification. 

13 (4) Materials selection, development, testing, 

14 and qualification. 

15 (5) Reactor and balance-of-plant design, engi16 neering, safety analysis, and qualification. 

17 (b) PROJECT PHASES.—The Project shall be con18 ducted in the following phases: 

19 (1) FIRST PROJECT PHASE.—A first project 

20 phase shall be conducted to— 

21 (A) select and validate the appropriate 

22 technology under subsection (a)(1); 

23 (B) carry out enabling research, develop24 ment, and demonstration activities on tech-
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1 nologies and components under paragraphs (2) 

2 through (4) of subsection (a); 

3 (C) determine whether it is appropriate to 

4 combine electricity generation and hydrogen 

5 production in a single prototype nuclear reactor 

6 and plant; and 

7 (D) carry out initial design activities for a 

8 prototype nuclear reactor and plant, including 

9 development of design methods and safety ana10 lytical methods and studies under subsection 

11 (a)(5) 

12 (2) SECOND PROJECT PHASE.—A second 

13 project phase shall be conducted to— 

14 (A) continue appropriate activities under 

15 paragraphs (1) though (5) of subsection (a); 

16 (B) develop, through a competitive process, 

17 a final design for the prototype nuclear reactor 

18 and plant; 

19 (C) apply for licenses to construct and op20 erate the prototype nuclear reactor from the 

21 Nuclear Regulatory Commission; and 

22 (D) construct and start up operations of 

23 the prototype nuclear reactor and its associated 

24 hydrogen or electricity production facilities. 

25 (c) PROJECT REQUIREMENTS.— 
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1 (1) IN GENERAL.—The Secretary shall ensure 

2 that the Project is structured so as to maximize the 

3 technical interchange and transfer of technologies 

4 and ideas into the Project from other sources of rel5 evant expertise, including— 

6 (A) the nuclear power industry, including 

7 nuclear powerplant construction firms, particu8 larly with respect to issues associated with 

9 plant design, construction, and operational and 

10 safety issues; 

11 (B) the chemical processing industry, par12 ticularly with respect to issues relating to— 

13 (i) the use of process energy for pro14 duction of hydrogen; and 

15 (ii) the integration of technologies de16 veloped by the Project into chemical proc17 essing environments; and 

18 (C) international efforts in areas related to 

19 the Project, particularly with respect to hydro20 gen production technologies. 

21 (2) INTERNATIONAL COLLABORATION.— 

22 (A) IN GENERAL.—The Secretary shall 

23 seek international cooperation, participation, 

24 and financial contributions for the Project. 
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1 (B) ASSISTANCE FROM INTERNATIONAL

2 PARTNERS.—The Secretary, through the Idaho 

3 National Laboratory, may contract for assist4 ance from specialists or facilities from member 

5 countries of the Generation IV International 

6 Forum, the Russian Federation, or other inter7 national partners if the specialists or facilities 

8 provide access to cost-effective and relevant 

9 skills or test capabilities. 

10 (C) PARTNER NATIONS.—The Project may 

11 involve demonstration of selected project objec12 tives in a partner country. 

13 (D) GENERATION IV INTERNATIONAL

14 FORUM.—The Secretary shall ensure that inter15 national activities of the Project are coordinated 

16 with the Generation IV International Forum. 

17 (3) REVIEW BY NUCLEAR ENERGY RESEARCH

18 ADVISORY COMMITTEE.— 

19 (A) IN GENERAL.—The Nuclear Energy 

20 Research Advisory Committee of the Depart21 ment (referred to in this paragraph as the 

22 ‘‘NERAC’’) shall— 

23 (i) review all program plans for the 

24 Project and all progress under the Project 

25 on an ongoing basis; and 
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1 (ii) ensure that important scientific, 

2 technical, safety, and program manage3 ment issues receive attention in the Project 

4 and by the Secretary. 

5 (B) ADDITIONAL EXPERTISE.—The 

6 NERAC shall supplement the expertise of 

7 NERAC or appoint subpanels to incorporate 

8 into the review by NERAC the relevant sources 

9 of expertise described under paragraph (1). 

10 (C) INITIAL REVIEW.—Not later than 180 

11 days after the date of enactment of this Act, 

12 the NERAC shall— 

13 (i) review existing program plans for 

14 the Project in light of the recommenda15 tions of the document entitled ‘‘Design 

16 Features and Technology Uncertainties for 

17 the Next Generation Nuclear Plant,’’ dated 

18 June 30, 2004; and 

19 (ii) address any recommendations of 

20 the document not incorporated in program 

21 plans for the Project. 

22 (D) FIRST PROJECT PHASE REVIEW.—On 

23 a determination by the Secretary that the ap24 propriate activities under the first project phase 

25 under subsection (b)(1) are nearly complete, the 
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1 Secretary shall request the NERAC to conduct 

2 a comprehensive review of the Project and to 

3 report to the Secretary the recommendation of 

4 NERAC concerning whether the Project is 

5 ready to proceed to the second project phase 

6 under subsection (b)(2). 

7 (E) TRANSMITTAL OF REPORTS TO CON8 GRESS.—Not later than 60 days after receiving 

9 any report from the NERAC related to the 

10 Project, the Secretary shall submit to the ap11 propriate committees of the Senate and the 

12 House of Representatives a copy of the report, 

13 along with any additional views of the Secretary 

14 that the Secretary may consider appropriate. 

15 SEC. 634. NUCLEAR REGULATORY COMMISSION. 

16 (a) IN GENERAL.—In accordance with section 202 of 

17 the Energy Reorganization Act of 1974 (42 U.S.C. 5842), 

18 the Nuclear Regulatory Commission shall have licensing 

19 and regulatory authority for any reactor authorized under 

20 this subtitle. 

21 (b) LICENSING STRATEGY.—Not later than 3 years 

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

23 the Chairman of the Nuclear Regulatory Commission shall 

24 jointly submit to the appropriate committees of the Senate 
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1 and the House of Representatives a licensing strategy for 

2 the prototype nuclear reactor, including— 

3 (1) a description of ways in which current li4 censing requirements relating to light-water reactors 

5 need to be adapted for the types of prototype nu6 clear reactor being considered by the Project; 

7 (2) a description of analytical tools that the 

8 Nuclear Regulatory Commission will have to develop 

9 to independently verify designs and performance 

10 characteristics of components, equipment, systems, 

11 or structures associated with the prototype nuclear 

12 reactor; 

13 (3) other research or development activities that 

14 may be required on the part of the Nuclear Regu15 latory Commission in order to review a license appli16 cation for the prototype nuclear reactor; and 

17 (4) an estimate of the budgetary requirements 

18 associated with the licensing strategy. 

19 (c) ONGOING INTERACTION.—The Secretary shall 

20 seek the active participation of the Nuclear Regulatory 

21 Commission throughout the duration of the Project to— 

22 (1) avoid design decisions that will compromise 

23 adequate safety margins in the design of the reactor 

24 or impair the accessibility of nuclear safety-related 
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1 components of the prototype reactor for inspection 

2 and maintenance; 

3 (2) develop tools to facilitate inspection and 

4 maintenance needed for safety purposes; and 

5 (3) develop risk-based criteria for any future 

6 commercial development of a similar reactor archi7 tectures. 

8 SEC. 635. PROJECT TIMELINES AND AUTHORIZATION OF 

9 APPROPRIATIONS. 

10 (a) TARGET DATE TO COMPLETE THE FIRST

11 PROJECT PHASE.—Not later than September 30, 2011— 

12 (1) the Secretary shall select the technology to 

13 be used by the Project for high-temperature hydro14 gen production and the initial design parameters for 

15 the prototype nuclear plant; or 

16 (2) submit to Congress a report establishing an 

17 alternative date for making the selection. 

18 (b) DESIGN COMPETITION FOR SECOND PROJECT

19 PHASE.— 

20 (1) IN GENERAL.—The Secretary, acting 

21 through the Idaho National Laboratory, shall fund 

22 not more than 4 teams for not more than 2 years 

23 to develop detailed proposals for competitive evalua24 tion and selection of a single proposal for a final de25 sign of the prototype nuclear reactor. 
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1 (2) SYSTEMS INTEGRATION.—The Secretary 

2 may structure Project activities in the second project 

3 phase to use the lead industrial partner of the com4 petitively selected design under paragraph (1) in a 

5 systems integration role for final design and con6 struction of the Project. 

7 (c) TARGET DATE TO COMPLETE PROJECT CON8 STRUCTION.—Not later than September 30, 2021— 

9 (1) the Secretary shall complete construction 

10 and begin operations of the prototype nuclear reac11 tor and associated energy or hydrogen facilities; or 

12 (2) submit to Congress a report establishing an 

13 alternative date for completion. 

14 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

15 authorized to be appropriated to the Secretary for re16 search and construction activities under this subtitle (in17 cluding for transfer to the Nuclear Regulatory Commis18 sion for activities under section 634 as appropriate)— 

19 (1) $1,250,000,000 for the period of fiscal 

20 years 2006 through 2015; and 

21 (2) such sums as are necessary for each of fis22 cal years 2016 through 2021. 
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1 TITLE VII—VEHICLES AND 

2 FUELS 

3 Subtitle A—Existing Programs 

4 SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 

5 VEHICLES. 

6 Section 400AA(a)(3) of the Energy Policy and Con7 servation Act (42 U.S.C. 6374(a)(3)) is amended by strik8 ing subparagraph (E) and inserting the following: 

9 ‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 

10 section shall be operated on alternative fuels unless the 

11 Secretary determines that an agency qualifies for a waiver 

12 of the requirements of this section for vehicles operated 

13 by the agency in a particular geographic area in which— 

14 ‘‘(I) the alternative fuel otherwise required to 

15 be used in the vehicle is not reasonably available to 

16 retail purchasers of the fuel, as certified to the Sec17 retary by the head of the agency; or 

18 ‘‘(II) the cost of the alternative fuel otherwise 

19 required to be used in the vehicle is unreasonably 

20 more expensive compared to gasoline, as certified to 

21 the Secretary by the head of the agency. 

22 ‘‘(ii) The Secretary shall monitor compliance with 

23 this subparagraph by all fleets receiving a waiver. 

24 ‘‘(iii) The Secretary shall report annually to Congress 

25 on the extent to which the requirements of this subpara-
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1 graph are being achieved, including information on annual 

2 reductions achieved from the use of petroleum-based fuels 

3 and the problems, if any, encountered in acquiring alter4 native fuels.’’. 

5 SEC. 702. ALTERNATIVE FUEL USE BY LIGHT DUTY VEHI6 CLES. 

7 Title V of the Energy Policy Act of 1992 (42 U.S.C. 

8 13251 et seq.) is amended by adding at the end the fol9 lowing: 

10 ‘‘SEC. 516. TERMINATION OF AUTHORITY. 

11 ‘‘The authority provided by sections 501, 507, and 

12 508 terminates the earlier of— 

13 ‘‘(1) September 30, 2015; or 

14 ‘‘(2) the date, the Secretary has established, by 

15 rule, a replacement program that achieves the goals 

16 of those sections.’’. 

17 SEC. 703. INCREMENTAL COST ALLOCATION. 

18 Section 303(c) of the Energy Policy Act of 1992 (42 

19 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in20 serting ‘‘shall’’. 

21 SEC. 704. ALTERNATIVE COMPLIANCE AND FLEXIBILITY. 

22 (a) ALTERNATIVE COMPLIANCE.—Title V of the En23 ergy Policy Act of 1992 (42 U.S.C. 13251 et seq.) is 

24 amended— 
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1 (1) by redesignating section 514 (42 U.S.C. 

2 13264) as section 515; and 

3 (2) by inserting after section 513 (42 U.S.C. 

4 13263) the following: 

5 ‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 

6 ‘‘(a) APPLICATION FOR WAIVER.—Any covered per7 son subject to section 501 and any State subject to section 

8 507(o) may petition the Secretary for a waiver of the ap9 plicable requirements of section 501 or 507(o). 

10 ‘‘(b) GRANT OF WAIVER.—The Secretary shall grant 

11 a waiver of the requirements of section 501 or 507(o) on 

12 a showing that the fleet owned, operated, leased, or other13 wise controlled by the State or covered person— 

14 ‘‘(1) will achieve a reduction in the annual con15 sumption of petroleum fuels by the fleet equal to— 

16 ‘‘(A) the reduction in consumption of pe17 troleum that would result from 100 percent cu18 mulative compliance with the fuel use require19 ments of section 501; or 

20 ‘‘(B) in the case of an entity covered under 

21 section 507(o), a reduction equal to the annual 

22 consumption by the State entity of alternative 

23 fuels if all of the cumulative alternative fuel ve24 hicles of the State entity given credit under sec-
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1 tion 508 were to use alternative fuel 100 per2 cent of the time; and 

3 ‘‘(2) is in compliance with all applicable vehicle 

4 emission standards established by the Administrator 

5 of the Environmental Protection Agency under the 

6 Clean Air Act (42 U.S.C. 7401 et seq.). 

7 ‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 

8 revoke any waiver granted under this section if the State 

9 or covered person fails to comply with subsection (b).’’. 

10 (b) CREDITS.—Section 508(a) of the Energy Policy 

11 Act of 1992 (42 U.S.C. 13258(a)) is amended— 

12 (1) by striking ‘‘The Secretary’’ and inserting 

13 the following: 

14 ‘‘(1) The Secretary’’; and 

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

16 ‘‘(2) Not later than January 31, 2007, the Sec17 retary shall— 

18 ‘‘(A) allocate credit in an amount to be de19 termined by the Secretary for— 

20 ‘‘(i) acquisition of— 

21 ‘‘(I) a light-duty hybrid electric 

22 vehicle; 

23 ‘‘(II) a plug-in hybrid electric ve24 hicle; 

25 ‘‘(III) a fuel cell electric vehicle; 
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1 ‘‘(IV) a medium- or heavy-duty 

2 hybrid electric vehicle; 

3 ‘‘(V) a neighborhood electric ve4 hicle; or 

5 ‘‘(VI) a medium- or heavy-duty 

6 dedicated vehicle; and 

7 ‘‘(ii) investment in qualified alter8 native fuel infrastructure or nonroad 

9 equipment, as determined by the Sec10 retary; and 

11 ‘‘(B) allocate more than 1, but not to ex12 ceed 5, credits for investment in an emerging 

13 technology relating to any vehicle described in 

14 subparagraph (A) to encourage— 

15 ‘‘(i) a reduction in petroleum demand; 

16 ‘‘(ii) technological advancement; and 

17 ‘‘(iii) environmental safety.’’. 

18 (c) TABLE OF CONTENTS AMENDMENT.—The table 

19 of contents of the Energy Policy Act of 1992 (42 U.S.C. 

20 prec. 13201) is amended by striking the item relating to 

21 section 514 and inserting the following: 

‘‘Sec. 514. Alternative compliance. 

‘‘Sec. 515. Authorization of appropriations. 

‘‘Sec. 516. Termination of authority.’’. 
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1 SEC. 705. REPORT CONCERNING COMPLIANCE WITH AL2 TERNATIVE FUELED VEHICLE PURCHASING 

3 REQUIREMENTS. 

4 Section 310(b)(1) of the Energy Policy Act of 1992 

5 (42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 

6 after the date of enactment of this subsection’’ and insert7 ing ‘‘February 15, 2006’’. 

8 Subtitle B—Automobile Efficiency 

9 SEC. 711. AUTHORIZATION OF APPROPRIATIONS FOR IM10 PLEMENTATION AND ENFORCEMENT OF 

11 FUEL ECONOMY STANDARDS. 

12 In addition to any other funds authorized by law, 

13 there is authorized to be appropriated to the National 

14 Highway Traffic Safety Administration to carry out its ob15 ligations with respect to average fuel economy standards 

16 $2,000,000 for each of fiscal years 2006 through 2010. 

17 Subtitle C—Miscellaneous 

18 SEC. 721. RAILROAD EFFICIENCY. 

19 (a) ESTABLISHMENT.—The Secretary shall (in co20 operation with the Secretary of Transportation and the 

21 Administrator of the Environmental Protection Agency) 

22 establish a cost-shared, public-private research partner23 ship involving the Federal Government, railroad carriers, 

24 locomotive manufacturers and equipment suppliers, and 

25 the Association of American Railroads, to develop and 

26 demonstrate railroad locomotive technologies that increase 
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1 fuel economy, reduce emissions, and lower costs of oper2 ation. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the Secretary to carry 

5 out this section— 

6 (1) $25,000,000 for fiscal year 2006; 

7 (2) $35,000,000 for fiscal year 2007; and 

8 (3) $50,000,000 for fiscal year 2008. 

9 SEC. 722. CONSERVE BY BICYCLING PROGRAM. 

10 (a) DEFINITIONS.—In this section: 

11 (1) PROGRAM.—The term ‘‘program’’ means 

12 the Conserve by Bicycling Program established by 

13 subsection (b). 

14 (2) SECRETARY.—The term ‘‘Secretary’’ means 

15 the Secretary of Transportation. 

16 (b) ESTABLISHMENT.—There is established within 

17 the Department of Transportation a program to be known 

18 as the ‘‘Conserve by Bicycling Program’’. 

19 (c) PROJECTS.— 

20 (1) IN GENERAL.—In carrying out the program, 

21 the Secretary shall establish not more than 10 pilot 

22 projects that are— 

23 (A) dispersed geographically throughout 

24 the United States; and 
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1 (B) designed to conserve energy resources 

2 by encouraging the use of bicycles in place of 

3 motor vehicles. 

4 (2) REQUIREMENTS.—A pilot project described 

5 in paragraph (1) shall— 

6 (A) use education and marketing to con7 vert motor vehicle trips to bicycle trips; 

8 (B) document project results and energy 

9 savings (in estimated units of energy con10 served); 

11 (C) facilitate partnerships among inter12 ested parties in at least 2 of the fields of— 

13 (i) transportation; 

14 (ii) law enforcement; 

15 (iii) education; 

16 (iv) public health; 

17 (v) environment; and 

18 (vi) energy; 

19 (D) maximize bicycle facility investments; 

20 (E) demonstrate methods that may be 

21 used in other regions of the United States; and 

22 (F) facilitate the continuation of ongoing 

23 programs that are sustained by local resources. 
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1 (3) COST SHARING.—At least 20 percent of the 

2 cost of each pilot project described in paragraph (1) 

3 shall be provided from non-Federal sources. 

4 (d) ENERGY AND BICYCLING RESEARCH STUDY.— 

5 (1) IN GENERAL.—Not later than 2 years after 

6 the date of enactment of this Act, the Secretary 

7 shall enter into a contract with the National Acad8 emy of Sciences for, and the National Academy of 

9 Sciences shall conduct and submit to Congress a re10 port on, a study on the feasibility of converting 

11 motor vehicle trips to bicycle trips. 

12 (2) COMPONENTS.—The study shall— 

13 (A) document the results or progress of 

14 the pilot projects under subsection (c); 

15 (B) determine the type and duration of 

16 motor vehicle trips that people in the United 

17 States may feasibly make by bicycle, taking into 

18 consideration factors such as— 

19 (i) weather; 

20 (ii) land use and traffic patterns; 

21 (iii) the carrying capacity of bicycles; 

22 and 

23 (iv) bicycle infrastructure; 
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1 (C) determine any energy savings that 

2 would result from the conversion of motor vehi3 cle trips to bicycle trips; 

4 (D) include a cost-benefit analysis of bicy5 cle infrastructure investments; and 

6 (E) include a description of any factors 

7 that would encourage more motor vehicle trips 

8 to be replaced with bicycle trips. 

9 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

10 authorized to be appropriated to the Secretary to carry 

11 out this section $6,200,000, to remain available until ex12 pended, of which— 

13 (1) $5,150,000 shall be used to carry out pilot 

14 projects described in subsection (c); 

15 (2) $300,000 shall be used by the Secretary to 

16 coordinate, publicize, and disseminate the results of 

17 the program; and 

18 (3) $750,000 shall be used to carry out sub19 section (d). 

20 SEC. 723. REDUCTION OF ENGINE IDLING OF HEAVY-DUTY 

21 VEHICLES. 

22 (a) DEFINITIONS.—In this section: 

23 (1) ADMINISTRATOR.—The term ‘‘Adminis24 trator’’ means the Administrator of the Environ25 mental Protection Agency. 
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1 (2) ADVANCED TRUCK STOP ELECTRIFICATION

2 SYSTEM.—The term ‘‘advanced truck stop elec3 trification system’’ means a stationary system that 

4 delivers heat, air conditioning, electricity, and com5 munications, and is capable of providing verifiable 

6 and auditable evidence of use of those services, to a 

7 heavy-duty vehicle and any occupants of the heavy8 duty vehicle without relying on components mounted 

9 onboard the heavy-duty vehicle for delivery of those 

10 services. 

11 (3) AUXILIARY POWER UNIT.—The term ‘‘auxil12 iary power unit’’ means an integrated system that— 

13 (A) provides heat, air conditioning, engine 

14 warming, and electricity to the factory-installed 

15 components on a heavy-duty vehicle as if the 

16 main drive engine of the heavy-duty vehicle 

17 were running; and 

18 (B) is certified by the Administrator under 

19 part 89 of title 40, Code of Federal Regulations 

20 (or any successor regulation), as meeting appli21 cable emission standards. 

22 (4) HEAVY-DUTY VEHICLE.—The term ‘‘heavy23 duty vehicle’’ means a vehicle that— 

24 (A) has a gross vehicle weight rating great25 er than 12,500 pounds; and 
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1 (B) is powered by a diesel engine. 

2 (5) IDLE REDUCTION TECHNOLOGY.—The term 

3 ‘‘idle reduction technology’’ means an advanced 

4 truck stop electrification system, auxiliary power 

5 unit, or other device or system of devices that— 

6 (A) is used to reduce long-duration idling 

7 of a heavy-duty vehicle; and 

8 (B) allows for the main drive engine or 

9 auxiliary refrigeration engine of a heavy-duty 

10 vehicle to be shut down. 

11 (6) LONG-DURATION IDLING.— 

12 (A) IN GENERAL.—The term ‘‘long-dura13 tion idling’’ means the operation of a main 

14 drive engine or auxiliary refrigeration engine of 

15 a heavy-duty vehicle, for a period greater than 

16 15 consecutive minutes, at a time at which the 

17 main drive engine is not engaged in gear. 

18 (B) EXCLUSIONS.—The term ‘‘long-dura19 tion idling’’ does not include the operation of a 

20 main drive engine or auxiliary refrigeration en21 gine of a heavy-duty vehicle during a routine 

22 stoppage associated with traffic movement or 

23 congestion. 

24 (b) IDLE REDUCTION TECHNOLOGY BENEFITS, PRO25 GRAMS, AND STUDIES.— 
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1 (1) IN GENERAL.—Not later than 90 days after 

2 the date of enactment of this Act, the Administrator 

3 shall— 

4 (A)(i) commence a review of the mobile 

5 source air emission models of the Environ6 mental Protection Agency used under the Clean 

7 Air Act (42 U.S.C. 7401 et seq.) to determine 

8 whether the models accurately reflect the emis9 sions resulting from long-duration idling of 

10 heavy-duty vehicles and other vehicles and en11 gines; and 

12 (ii) update those models as the Adminis13 trator determines to be appropriate; and 

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

15 reductions achieved by the use of idle reduction 

16 technology; and 

17 (ii) complete such revisions of the regula18 tions and guidance of the Environmental Pro19 tection Agency as the Administrator determines 

20 to be appropriate. 

21 (2) DEADLINE FOR COMPLETION.—Not later 

22 than 180 days after the date of enactment of this 

23 Act, the Administrator shall— 

24 (A) complete the reviews under subpara25 graphs (A)(i) and (B)(i) of paragraph (1); and 
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1 (B) prepare and make publicly available 1 

2 or more reports on the results of the reviews. 

3 (3) DISCRETIONARY INCLUSIONS.—The reviews 

4 under subparagraphs (A)(i) and (B)(i) of paragraph 

5 (1) and the reports under paragraph (2)(B) may ad6 dress the potential fuel savings resulting from use of 

7 idle reduction technology. 

8 (4) IDLE REDUCTION DEPLOYMENT PRO9 GRAM.— 

10 (A) ESTABLISHMENT.— 

11 (i) IN GENERAL.—Not later than 90 

12 days after the date of enactment of this 

13 Act, the Administrator, in consultation 

14 with the Secretary of Transportation, shall 

15 establish a program to support deployment 

16 of idle reduction technology. 

17 (ii) PRIORITY.—The Administrator 

18 shall give priority to the deployment of idle 

19 reduction technology based on beneficial ef20 fects on air quality and ability to lessen 

21 the emission of criteria air pollutants. 

22 (B) FUNDING.— 

23 (i) AUTHORIZATION OF APPROPRIA24 TIONS.—There are authorized to be appro-
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1 priated to the Administrator to carry out 

2 subparagraph (A)— 

3 (I) $19,500,000 for fiscal year 

4 2006; 

5 (II) $30,000,000 for fiscal year 

6 2007; and 

7 (III) $45,000,000 for fiscal year 

8 2008. 

9 (ii) COST SHARING.—Subject to clause 

10 (iii), the Administrator shall require at 

11 least 50 percent of the costs directly and 

12 specifically related to any project under 

13 this section to be provided from non-Fed14 eral sources. 

15 (iii) NECESSARY AND APPROPRIATE

16 REDUCTIONS.—The Administrator may re17 duce the non-Federal requirement under 

18 clause (ii) if the Administrator determines 

19 that the reduction is necessary and appro20 priate to meet the objectives of this sec21 tion. 

22 (5) IDLING LOCATION STUDY.— 

23 (A) IN GENERAL.—Not later than 90 days 

24 after the date of enactment of this Act, the Ad25 ministrator, in consultation with the Secretary 
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1 of Transportation, shall commence a study to 

2 analyze all locations at which heavy-duty vehi3 cles stop for long-duration idling, including— 

4 (i) truck stops; 

5 (ii) rest areas; 

6 (iii) border crossings; 

7 (iv) ports; 

8 (v) transfer facilities; and 

9 (vi) private terminals. 

10 (B) DEADLINE FOR COMPLETION.—Not 

11 later than 180 days after the date of enactment 

12 of this Act, the Administrator shall— 

13 (i) complete the study under subpara14 graph (A); and 

15 (ii) prepare and make publicly avail16 able 1 or more reports of the results of the 

17 study. 

18 (c) VEHICLE WEIGHT EXEMPTION.—Section 127(a) 

19 of title 23, United States Code, is amended— 

20 (1) by designating the first through eleventh 

21 sentences as paragraphs (1) through (11), respec22 tively; and 

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

24 ‘‘(12) HEAVY DUTY VEHICLES.— 
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1 ‘‘(A) IN GENERAL.—Subject to subpara2 graphs (B) and (C), in order to promote reduc3 tion of fuel use and emissions because of engine 

4 idling, the maximum gross vehicle weight limit 

5 and the axle weight limit for any heavy-duty ve6 hicle equipped with an idle reduction technology 

7 shall be increased by a quantity necessary to 

8 compensate for the additional weight of the idle 

9 reduction system. 

10 ‘‘(B) MAXIMUM WEIGHT INCREASE.—The 

11 weight increase under subparagraph (A) shall 

12 be not greater than 250 pounds. 

13 ‘‘(C) PROOF.—On request by a regulatory 

14 agency or law enforcement agency, the vehicle 

15 operator shall provide proof (through dem16 onstration or certification) that— 

17 ‘‘(i) the idle reduction technology is 

18 fully functional at all times; and 

19 ‘‘(ii) the 250-pound gross weight in20 crease is not used for any purpose other 

21 than the use of idle reduction technology 

22 described in subparagraph (A).’’. 
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1 SEC. 724. BIODIESEL ENGINE TESTING PROJECT. 

2 (a) DEFINITION OF BIODIESEL.—In this section, the 

3 term ‘‘biodiesel’’ means a diesel fuel substitute produced 

4 from nonpetroleum renewable resources that meets— 

5 (1) the registration requirements for fuels and 

6 fuel additives established under section 211 of the 

7 Clean Air Act (42 U.S.C. 7545); and 

8 (2) the American Society for Testing and Mate9 rials Standard D6751–02a ‘‘Standard Specification 

10 for Biodiesel Fuel (B100) Blend Stock for Distillate 

11 Fuels’’. 

12 (b) PROGRAM.—Not later than 180 days after the 

13 date of enactment of this Act, the Secretary shall initiate 

14 a project, in partnership with diesel engine, diesel fuel in15 jection system, and diesel vehicle manufacturers and diesel 

16 and biodiesel fuel providers, to provide biodiesel testing 

17 in advanced diesel engine and fuel system technology. 

18 (c) SCOPE.—The project shall provide for testing to 

19 determine the impact of biodiesel on current and future 

20 emission control technologies, with emphasis on— 

21 (1) the impact of biodiesel on emissions war22 ranty, in-use liability, and anti-tampering provisions; 

23 (2) the impact of long-term use of biodiesel on 

24 engine operations; 
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1 (3) the options for optimizing those technologies 

2 for both emissions and performance when switching 

3 between biodiesel and diesel fuel; and 

4 (4) the impact of using biodiesel in those fuel5 ing systems and engines when used as a blend with 

6 diesel fuel containing a maximum of 15-parts-per7 million sulfur content, as mandated by the Adminis8 trator of the Environmental Protection Agency dur9 ing 2006. 

10 (d) REPORT.—Not later than 2 years after the date 

11 of enactment of this Act, the Secretary shall submit to 

12 Congress a report on the results of the project, includ13 ing— 

14 (1) a comprehensive analysis of impacts from 

15 biodiesel on engine operation for both existing and 

16 expected future diesel technologies; and 

17 (2) recommendations for ensuring optimal emis18 sions reductions and engine performance with bio19 diesel. 

20 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

21 authorized to be appropriated to carry out this section 

22 $5,000,000 for each of fiscal years 2006 through 2008. 
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1 Subtitle D—Federal and State 

2 Procurement 

3 SEC. 731. DEFINITIONS. 

4 In this subtitle: 

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

6 means the Department of Energy. 

7 (2) FUEL CELL.—The term ‘‘fuel cell’’ means a 

8 device that directly converts the chemical energy of 

9 a fuel and an oxidant into electricity by electro10 chemical processes occurring at separate electrodes 

11 in the device. 

12 (3) SECRETARY.—The term ‘‘Secretary’’ means 

13 the Secretary of Energy. 

14 (4) STATIONARY; PORTABLE.—The terms ‘‘sta15 tionary’’ and ‘‘portable’’, when used in reference to 

16 a fuel cell, include— 

17 (A) continuous electric power; and 

18 (B) backup electric power. 

19 (5) TASK FORCE.—The term ‘‘Task Force’’ 

20 means the Hydrogen and Fuel Cell Technical Task 

21 Force established under section 102(a) of the Spark 

22 M. Matsunaga Hydrogen Research, Development, 

23 and Demonstration Act of 1990 (as amended by sec24 tion 801). 
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1 (6) TECHNICAL ADVISORY COMMITTEE.—The 

2 term ‘‘Technical Advisory Committee’’ means the 

3 independent Technical Advisory Committee selected 

4 under section 102(d) of the Spark M. Matsunaga 

5 Hydrogen Research, Development, and Demonstra6 tion Act of 1990 (as added by section 801). 

7 SEC. 732. FEDERAL AND STATE PROCUREMENT OF FUEL 

8 CELL VEHICLES AND HYDROGEN ENERGY 

9 SYSTEMS. 

10 (a) PURPOSES.—The purposes of this section are— 

11 (1) to stimulate acceptance by the market of 

12 fuel cell vehicles and hydrogen energy systems; 

13 (2) to support development of technologies re14 lating to fuel cell vehicles, public refueling stations, 

15 and hydrogen energy systems; and 

16 (3) to require the Federal government, which is 

17 the largest single user of energy in the United 

18 States, to adopt those technologies as soon as prac19 ticable after the technologies are developed, in con20 junction with private industry partners. 

21 (b) FEDERAL LEASES AND PURCHASES.— 

22 (1) REQUIREMENT.— 

23 (A) IN GENERAL.—Not later than January 

24 1, 2010, the head of any Federal agency that 

25 uses a light-duty or heavy-duty vehicle fleet 
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1 shall lease or purchase fuel cell vehicles and hy2 drogen energy systems to meet any applicable 

3 energy savings goal described in subsection (c). 

4 (B) LEARNING DEMONSTRATION VEHI5 CLES.—The Secretary may lease or purchase 

6 appropriate vehicles developed under section 

7 201 of the Spark M. Matsunaga Hydrogen Re8 search, Development, and Demonstration Act of 

9 1990 (as added by section 801) to meet the re10 quirement in subparagraph (A). 

11 (2) COSTS OF LEASES AND PURCHASES.— 

12 (A) IN GENERAL.—The Secretary, in co13 operation with the Task Force and the Tech14 nical Advisory Committee, shall pay to Federal 

15 agencies (or share the cost under interagency 

16 agreements) the difference in cost between— 

17 (i) the cost to the agencies of leasing 

18 or purchasing fuel cell vehicles and hydro19 gen energy systems under paragraph (1); 

20 and 

21 (ii) the cost to the agencies of a fea22 sible alternative to leasing or purchasing 

23 fuel cell vehicles and hydrogen energy sys24 tems, as determined by the Secretary. 
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1 (B) COMPETITIVE COSTS AND MANAGE2 MENT STRUCTURES.—In carrying out subpara3 graph (A), the Secretary, in consultation with 

4 the agency, may use the General Services Ad5 ministration or any commercial vendor to en6 sure— 

7 (i) a cost-effective purchase of a fuel 

8 cell vehicle or hydrogen energy system; or 

9 (ii) a cost-effective management struc10 ture of the lease of a fuel cell vehicle or hy11 drogen energy system. 

12 (3) EXCEPTION.— 

13 (A) IN GENERAL.—If the Secretary deter14 mines that the head of an agency described in 

15 paragraph (1) cannot find an appropriately effi16 cient and reliable fuel cell vehicle or hydrogen 

17 energy system in accordance with paragraph 

18 (1), that agency shall be excepted from compli19 ance with paragraph (1). 

20 (B) CONSIDERATION.—In making a deter21 mination under subparagraph (A), the Sec22 retary shall consider— 

23 (i) the needs of the agency; and 

24 (ii) an evaluation performed by— 

25 (I) the Task Force; or 
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1 (II) the Technical Advisory Com2 mittee. 

3 (c) ENERGY SAVINGS GOALS.— 

4 (1) IN GENERAL.— 

5 (A) REGULATIONS.—Not later than De6 cember 31, 2006, the Secretary shall— 

7 (i) in cooperation with the Task 

8 Force, promulgate regulations for the pe9 riod of 2008 through 2010 that extend and 

10 augment energy savings goals for each 

11 Federal agency, in accordance with any 

12 Executive order issued after March 2000; 

13 and 

14 (ii) promulgate regulations to expand 

15 the minimum Federal fleet requirement 

16 and credit allowances for fuel cell vehicle 

17 systems under section 303 of the Energy 

18 Policy Act of 1992 (42 U.S.C. 13212). 

19 (B) REVIEW, EVALUATION, AND NEW REG20 ULATIONS.—Not later than December 31, 

21 2010, the Secretary shall— 

22 (i) review the regulations promulgated 

23 under subparagraph (A); 
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1 (ii) evaluate any progress made to2 ward achieving energy savings by Federal 

3 agencies; and 

4 (iii) promulgate new regulations for 

5 the period of 2011 through 2015 to 

6 achieve additional energy savings by Fed7 eral agencies relating to technical and cost8 performance standards. 

9 (2) OFFSETTING ENERGY SAVINGS GOALS.—An 

10 agency that leases or purchases a fuel cell vehicle or 

11 hydrogen energy system in accordance with sub12 section (b)(1) may use that lease or purchase to 

13 count toward an energy savings goal of the agency. 

14 (d) COOPERATIVE PROGRAM WITH STATE AGEN15 CIES.— 

16 (1) IN GENERAL.—The Secretary may establish 

17 a cooperative program with State agencies managing 

18 motor vehicle fleets to encourage purchase of fuel 

19 cell vehicles by the agencies. 

20 (2) INCENTIVES.—In carrying out the coopera21 tive program, the Secretary may offer incentive pay22 ments to a State agency to assist with the cost of 

23 planning, differential purchases, and administration. 

24 (e) AUTHORIZATION OF APPROPRIATIONS.—There is 

25 authorized to be appropriated to carry out this section— 
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1 (1) $15,000,000 for fiscal year 2008; 

2 (2) $25,000,000 for fiscal year 2009; 

3 (3) $65,000,000 for fiscal year 2010; and 

4 (4) such sums as are necessary for each of fis5 cal years 2011 through 2015. 

6 SEC. 733. FEDERAL PROCUREMENT OF STATIONARY, PORT7 ABLE, AND MICRO FUEL CELLS. 

8 (a) PURPOSES.—The purposes of this section are— 

9 (1) to stimulate acceptance by the market of 

10 stationary, portable, and micro fuel cells; and 

11 (2) to support development of technologies re12 lating to stationary, portable, and micro fuel cells. 

13 (b) FEDERAL LEASES AND PURCHASES.— 

14 (1) IN GENERAL.—Not later than January 1, 

15 2006, the head of any Federal agency that uses elec16 trical power from stationary, portable, or microport17 able devices shall lease or purchase a stationary, 

18 portable, or micro fuel cell to meet any applicable 

19 energy savings goal described in subsection (c). 

20 (2) COSTS OF LEASES AND PURCHASES.— 

21 (A) IN GENERAL.—The Secretary, in co22 operation with the Task Force and the Tech23 nical Advisory Committee, shall pay the cost to 

24 Federal agencies (or share the cost under inter25 agency agreements) of leasing or purchasing 
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1 stationary, portable, and micro fuel cells under 

2 paragraph (1). 

3 (B) COMPETITIVE COSTS AND MANAGE4 MENT STRUCTURES.—In carrying out subpara5 graph (A), the Secretary, in consultation with 

6 the agency, may use the General Services Ad7 ministration or any commercial vendor to en8 sure— 

9 (i) a cost-effective purchase of a sta10 tionary, portable, or micro fuel cell; or 

11 (ii) a cost-effective management struc12 ture of the lease of a stationary, portable, 

13 or micro fuel cell. 

14 (3) EXCEPTION.— 

15 (A) IN GENERAL.—If the Secretary deter16 mines that the head of an agency described in 

17 paragraph (1) cannot find an appropriately effi18 cient and reliable stationary, portable, or micro 

19 fuel cell in accordance with paragraph (1), that 

20 agency shall be excepted from compliance with 

21 paragraph (1). 

22 (B) CONSIDERATION.—In making a deter23 mination under subparagraph (A), the Sec24 retary shall consider— 

25 (i) the needs of the agency; and 
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1 (ii) an evaluation performed by— 

2 (I) the Task Force; or 

3 (II) the Technical Advisory Com4 mittee of the Task Force. 

5 (c) ENERGY SAVINGS GOALS.—An agency that leases 

6 or purchases a stationary, portable, or micro fuel cell in 

7 accordance with subsection (b)(1) may use that lease or 

8 purchase to count toward an energy savings goal described 

9 in section 732(c)(1) that is applicable to the agency. 

10 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

11 authorized to be appropriated to carry out this section— 

12 (1) $20,000,000 for fiscal year 2006; 

13 (2) $50,000,000 for fiscal year 2007; 

14 (3) $75,000,000 for fiscal year 2008; 

15 (4) $100,000,000 for fiscal year 2009; 

16 (5) $100,000,000 for fiscal year 2010; and 

17 (6) such sums as are necessary for each of fis18 cal years 2011 through 2015. 

19 TITLE VIII—HYDROGEN 

20 SEC. 801. HYDROGEN RESEARCH, DEVELOPMENT, AND 

21 DEMONSTRATION. 

22 The Spark M. Matsunaga Hydrogen Research, Devel23 opment, and Demonstration Act of 1990 (42 U.S.C. 

24 12401 et seq.) is amended to read as follows: 
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1 ‘‘SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

3 ‘Spark M. Matsunaga Hydrogen Research, Development, 

4 and Demonstration Act of 1990’. 

5 ‘‘(b) TABLE OF CONTENTS.—The table of contents 

6 of this Act is as follows: 

‘‘Sec. 1. Short title; table of contents. 

‘‘Sec. 2. Purposes. 

‘‘Sec. 3. Definitions. 

‘‘TITLE I—HYDROGEN AND FUEL CELLS 

‘‘Sec. 101. Hydrogen and fuel cell technology research and development. 

‘‘Sec. 102. Task Force. 

‘‘Sec. 103. Technology transfer. 

‘‘Sec. 104. Authorization of appropriations. 

‘‘TITLE II—HYDROGEN AND FUEL CELL DEMONSTRATION 

‘‘Sec. 201. Hydrogen Supply and Fuel Cell Demonstration Program. 

‘‘Sec. 202. Authorization of appropriations. 

‘‘TITLE III—REGULATORY MANAGEMENT 

‘‘Sec. 301. Codes and standards. 

‘‘Sec. 302. Disclosure. 

‘‘Sec. 303. Authorization of appropriations. 

‘‘TITLE IV—REPORTS 

‘‘Sec. 401. Deployment of hydrogen technology. 

‘‘Sec. 402. Authorization of appropriations. 

‘‘TITLE V—TERMINATION OF AUTHORITY 

‘‘Sec. 501. Termination of authority. 

7 ‘‘SEC. 2. PURPOSES. 

8 ‘‘The purposes of this Act are— 

9 ‘‘(1) to enable and promote comprehensive de10 velopment, demonstration, and commercialization of 

11 hydrogen and fuel cell technology in partnership 

12 with industry; 
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1 ‘‘(2) to make critical public investments in 

2 building strong links to private industry, institutions 

3 of higher education, National Laboratories, and re4 search institutions to expand innovation and indus5 trial growth; 

6 ‘‘(3) to build a mature hydrogen economy that 

7 creates fuel diversity in the massive transportation 

8 sector of the United States; 

9 ‘‘(4) to sharply decrease the dependency of the 

10 United States on imported oil, eliminate most emis11 sions from the transportation sector, and greatly en12 hance our energy security; and 

13 ‘‘(5) to create, strengthen, and protect a sus14 tainable national energy economy. 

15 ‘‘SEC. 3. DEFINITIONS. 

16 ‘‘In this Act: 

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

18 means the Department of Energy. 

19 ‘‘(2) FUEL CELL.—The term ‘fuel cell’ means a 

20 device that directly converts the chemical energy of 

21 a fuel, which is supplied from an external source, 

22 and an oxidant into electricity by electrochemical 

23 processes occurring at separate electrodes in the de24 vice. 
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1 ‘‘(3) HEAVY-DUTY VEHICLE.—The term ‘heavy2 duty vehicle’ means a motor vehicle that— 

3 ‘‘(A) is rated at more than 8,500 pounds 

4 gross vehicle weight; 

5 ‘‘(B) has a curb weight of more than 6,000 

6 pounds; or 

7 ‘‘(C) has a basic vehicle frontal area in ex8 cess of 45 square feet. 

9 ‘‘(4) INFRASTRUCTURE.—The term ‘infrastruc10 ture’ means the equipment, systems, or facilities 

11 used to produce, distribute, deliver, or store hydro12 gen (except for onboard storage). 

13 ‘‘(5) LIGHT-DUTY VEHICLE.—The term ‘light14 duty vehicle’ means a motor vehicle that is rated at 

15 8,500 or less pounds gross vehicle weight. 

16 ‘‘(6) SECRETARY.—The term ‘Secretary’ means 

17 the Secretary of Energy. 

18 ‘‘(7) STATIONARY; PORTABLE.—The terms ‘sta19 tionary’ and ‘portable’, when used in reference to a 

20 fuel cell, include— 

21 ‘‘(A) continuous electric power; and 

22 ‘‘(B) backup electric power. 

23 ‘‘(8) TASK FORCE.—The term ‘Task Force’ 

24 means the Hydrogen and Fuel Cell Technical Task 

25 Force established under section 102(a). 
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1 ‘‘(9) TECHNICAL ADVISORY COMMITTEE.—The 

2 term ‘Technical Advisory Committee’ means the 

3 independent Technical Advisory Committee of the 

4 Task Force selected under section 102(d). 

5 ‘‘TITLE I—HYDROGEN AND FUEL 

6 CELLS 

7 ‘‘SEC. 101. HYDROGEN AND FUEL CELL TECHNOLOGY RE8 SEARCH AND DEVELOPMENT. 

9 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

10 with other Federal agencies and the private sector, shall 

11 conduct a research and development program on tech12 nologies relating to the production, purification, distribu13 tion, storage, and use of hydrogen energy, fuel cells, and 

14 related infrastructure. 

15 ‘‘(b) GOAL.—The goal of the program shall be to 

16 demonstrate and commercialize the use of hydrogen for 

17 transportation (in light-duty vehicles and heavy-duty vehi18 cles), utility, industrial, commercial and residential appli19 cations. 

20 ‘‘(c) FOCUS.—In carrying out activities under this 

21 section, the Secretary shall focus on factors that are com22 mon to the development of hydrogen infrastructure and 

23 the supply of vehicle and electric power for critical con24 sumer and commercial applications, and that achieve con25 tinuous technical evolution and cost reduction, particularly 
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1 for hydrogen production, the supply of hydrogen, storage 

2 of hydrogen, and end uses of hydrogen that— 

3 ‘‘(1) steadily increase production, distribution, 

4 and end use efficiency and reduce life-cycle emis5 sions; 

6 ‘‘(2) resolve critical problems relating to cata7 lysts, membranes, storage, lightweight materials, 

8 electronic controls, and other problems that emerge 

9 from research and development; 

10 ‘‘(3) enhance sources of renewable fuels and 

11 biofuels for hydrogen production; and 

12 ‘‘(4) enable widespread use of distributed elec13 tricity generation and storage. 

14 ‘‘(d) PUBLIC EDUCATION AND RESEARCH.—In car15 rying out this section, the Secretary shall support en16 hanced public education and research conducted at institu17 tions of higher education in fundamental sciences, applica18 tion design, and systems concepts (including education 

19 and research relating to materials, subsystems, 

20 manufacturability, maintenance, and safety) relating to 

21 hydrogen and fuel cells. 

22 ‘‘(e) COST SHARING.—The costs of carrying out 

23 projects and activities under this section shall be shared 

24 in accordance with section 1002 of the Energy Policy Act 

25 of 2005. 
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1 ‘‘SEC. 102. TASK FORCE. 

2 ‘‘(a) ESTABLISHMENT.—The Secretary, in consulta3 tion with the Director of the Office of Science and Tech4 nology Policy, shall establish an interagency Task Force, 

5 to be known as the ‘Hydrogen and Fuel Cell Technical 

6 Task Force’ to advise the Secretary in carrying out pro7 grams under this Act. 

8 ‘‘(b) MEMBERSHIP.— 

9 ‘‘(1) IN GENERAL.—The Task Force shall be 

10 comprised of such representatives of the Office of 

11 Science and Technology Policy, the Environmental 

12 Protection Agency, the Department of Transpor13 tation, the Department of Defense, the National 

14 Aeronautics and Space Administration, and such 

15 other members, as the Secretary, in consultation 

16 with the Director of the Office of Science and Tech17 nology Policy, determines to be appropriate. 

18 ‘‘(2) VOTING.—A member of the Task Force 

19 that does not represent a Federal agency shall serve 

20 on the Task Force only in a nonvoting, advisory ca21 pacity. 

22 ‘‘(c) DUTIES.—The Task Force shall review and 

23 make any necessary recommendations to the Secretary on 

24 implementation and conduct of programs under this Act. 

25 ‘‘(d) TECHNICAL ADVISORY COMMITTEE.— 
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1 ‘‘(1) IN GENERAL.—The Secretary shall select 

2 such number of members as the Secretary considers 

3 to be appropriate to form an independent, non4 political Technical Advisory Committee. 

5 ‘‘(2) MEMBERSHIP.—Each member of the 

6 Technical Advisory Committee shall have scientific, 

7 technical, or industrial expertise, as determined by 

8 the Secretary. 

9 ‘‘(3) DUTIES.—The Technical Advisory Com10 mittee shall provide technical advice and assistance 

11 to the Task Force and the Secretary. 

12 ‘‘SEC. 103. TECHNOLOGY TRANSFER. 

13 ‘‘In carrying out this Act, the Secretary shall carry 

14 out programs that— 

15 ‘‘(1) provide for the transfer of critical hydro16 gen and fuel cell technologies to the private sector; 

17 ‘‘(2) accelerate wider application of those tech18 nologies in the global market; 

19 ‘‘(3) foster the exchange of generic, nonpropri20 etary information; and 

21 ‘‘(4) assess technical and commercial viability 

22 of technologies relating to the production, distribu23 tion, storage, and use of hydrogen energy and fuel 

24 cells. 
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1 ‘‘SEC. 104. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘(a) HYDROGEN SUPPLY.—There are authorized to 

3 be appropriated to carry out projects and activities relat4 ing to hydrogen production, storage, distribution and dis5 pensing, transport, education and coordination, and tech6 nology transfer under this title— 

7 ‘‘(1) $160,000,000 for fiscal year 2006; 

8 ‘‘(2) $200,000,000 for fiscal year 2007; 

9 ‘‘(3) $220,000,000 for fiscal year 2008; 

10 ‘‘(4) $230,000,000 for fiscal year 2009; 

11 ‘‘(5) $250,000,000 for fiscal year 2010; and 

12 ‘‘(6) such sums as are necessary for each of fis13 cal years 2011 through 2015. 

14 ‘‘(b) FUEL CELL TECHNOLOGIES.—There are au15 thorized to be appropriated to carry out projects and ac16 tivities relating to fuel cell technologies under this title— 

17 ‘‘(1) $150,000,000 for fiscal year 2006; 

18 ‘‘(2) $160,000,000 for fiscal year 2007; 

19 ‘‘(3) $170,000,000 for fiscal year 2008; 

20 ‘‘(4) $180,000,000 for fiscal year 2009; 

21 ‘‘(5) $200,000,000 for fiscal year 2010; and 

22 ‘‘(6) such sums as are necessary for each of fis23 cal years 2011 through 2015. 
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1 ‘‘TITLE II—HYDROGEN AND 

2 FUEL CELL DEMONSTRATION 

3 ‘‘SEC. 201. HYDROGEN SUPPLY AND FUEL CELL DEM4 ONSTRATION PROGRAM. 

5 ‘‘(a) IN GENERAL.—The Secretary, in consultation 

6 with the Task Force and the Technical Advisory Com7 mittee, shall carry out a program to demonstrate develop8 mental hydrogen and fuel cell systems for mobile, portable, 

9 μand stationary uses, using improved versions of the 

10 learning demonstrations program concept of the Depart11 ment including demonstrations involving— 

12 ‘‘(1) light-duty vehicles; 

13 ‘‘(2) heavy-duty vehicles; 

14 ‘‘(3) fleet vehicles; 

15 ‘‘(4) specialty industrial and farm vehicles; and 

16 ‘‘(5) commercial and residential portable, con17 tinuous, and backup electric power generation. 

18 ‘‘(b) OTHER DEMONSTRATION PROGRAMS.—To de19 velop widespread hydrogen supply and use options, and 

20 assist evolution of technology, the Secretary shall— 

21 ‘‘(1) carry out demonstrations of evolving hy22 drogen and fuel cell technologies in national parks, 

23 remote island areas, and on Indian tribal land, as 

24 selected by the Secretary; 
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1 ‘‘(2) in accordance with any code or standards 

2 developed in a region, fund prototype, pilot fleet, 

3 and infrastructure regional hydrogen supply cor4 ridors along the interstate highway system in varied 

5 climates across the United States; and 

6 ‘‘(3) fund demonstration programs that explore 

7 the use of hydrogen blends, hybrid hydrogen, and 

8 hydrogen reformed from renewable agricultural 

9 fuels, including the use of hydrogen in hybrid elec10 tric, heavier duty, and advanced internal combus11 tion-powered vehicles. 

12 ‘‘(c) SYSTEM DEMONSTRATIONS.— 

13 ‘‘(1) IN GENERAL.—As a component of the 

14 demonstration program under this section, the Sec15 retary shall provide grants, on a cost share basis as 

16 appropriate, to eligible entities (as determined by the 

17 Secretary) for use in— 

18 ‘‘(A) devising system design concepts that 

19 provide for the use of advanced composite vehi20 cles in programs under section 732 of the En21 ergy Policy Act of 2005 that— 

22 ‘‘(i) have as a primary goal the reduc23 tion of drive energy requirements; 

24 ‘‘(ii) after 2010, add another research 

25 and development phase to the vehicle and 
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1 infrastructure partnerships developed 

2 under the learning demonstrations pro3 gram concept of the Department; and 

4 ‘‘(iii) are managed through an en5 hanced FreedomCAR program within the 

6 Department that encourages involvement 

7 in cost-shared projects by manufacturers 

8 and governments; and 

9 ‘‘(B) designing a local distributed energy 

10 system that— 

11 ‘‘(i) incorporates renewable hydrogen 

12 production, off-grid electricity production, 

13 and fleet applications in industrial or com14 mercial service; 

15 ‘‘(ii) integrates energy or applications 

16 described in clause (i), such as stationary, 

17 portable, micro, and mobile fuel cells, into 

18 a high-density commercial or residential 

19 building complex or agricultural commu20 nity; and 

21 ‘‘(iii) is managed in cooperation with 

22 industry, State, tribal, and local govern23 ments, agricultural organizations, and non24 profit generators and distributors of elec25 tricity. 
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1 ‘‘(2) COST SHARING.—The costs of carrying out 

2 a project or activity under this subsection shall be 

3 shared in accordance with section 1002 of the En4 ergy Policy Act of 2005. 

5 ‘‘(d) IDENTIFICATION OF NEW RESEARCH AND DE6 VELOPMENT REQUIREMENTS.—In carrying out the dem7 onstrations under subsection (a), the Secretary, in con8 sultation with the Task Force and the Technical Advisory 

9 Committee, shall— 

10 ‘‘(1) after 2008 for stationary and portable ap11 plications, and after 2010 for vehicles, identify new 

12 research and development requirements that refine 

13 technological concepts, planning, and applications; 

14 and 

15 ‘‘(2) during the second phase of the learning 

16 demonstrations under subsection (c)(1)(A)(ii) rede17 sign subsequent research and development to incor18 porate those requirements. 

19 ‘‘SEC. 202. AUTHORIZATION OF APPROPRIATIONS. 

20 ‘‘There are authorized to be appropriated to carry out 

21 this title— 

22 ‘‘(1) $185,000,000 for fiscal year 2006; 

23 ‘‘(2) $200,000,000 for fiscal year 2007; 

24 ‘‘(3) $250,000,000 for fiscal year 2008; 

25 ‘‘(4) $300,000,000 for fiscal year 2009; 
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1 ‘‘(5) $375,000,000 for fiscal year 2010; and 

2 ‘‘(6) such sums as are necessary for each of fis3 cal years 2011 through 2015. 

4 ‘‘TITLE III—REGULATORY 

5 MANAGEMENT 

6 ‘‘SEC. 301. CODES AND STANDARDS. 

7 ‘‘(a) IN GENERAL.—The Secretary, in cooperation 

8 with the Task Force, shall provide grants to, or offer to 

9 enter into contracts with such professional organizations, 

10 public service organizations, and government agencies as 

11 the Secretary determines appropriate to support timely 

12 and extensive development of safety codes and standards 

13 relating to fuel cell vehicles, hydrogen energy systems, and 

14 stationary, portable, and micro fuel cells. 

15 ‘‘(b) EDUCATIONAL EFFORTS.—The Secretary shall 

16 support educational efforts by organizations and agencies 

17 described in subsection (a) to share information, including 

18 information relating to best practices, among those organi19 zations and agencies. 

20 ‘‘SEC. 302. DISCLOSURE. 

21 ‘‘Section 623 of the Energy Policy Act of 1992 (42 

22 U.S.C. 13293) shall apply to any project carried out 

23 through a grant, cooperative agreement, or contract under 

24 this Act. 
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1 ‘‘SEC. 303. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated to carry out 

3 this title— 

4 ‘‘(1) $4,000,000 for fiscal year 2006; 

5 ‘‘(2) $7,000,000 for fiscal year 2007; 

6 ‘‘(3) $8,000,000 for fiscal year 2008; 

7 ‘‘(4) $10,000,000 for fiscal year 2009; 

8 ‘‘(5) $9,000,000 for fiscal year 2010; and 

9 ‘‘(6) such sums as are necessary for each of fis10 cal years 2011 and 2012. 

11 ‘‘TITLE IV—REPORTS 

12 ‘‘SEC. 401. DEPLOYMENT OF HYDROGEN TECHNOLOGY. 

13 ‘‘(a) SECRETARY.—Subject to subsection (c), not 

14 later than 2 years after the date of enactment of the Hy15 drogen and Fuel Cell Technology Act of 2005, and tri16 ennially thereafter, the Secretary shall submit to Congress 

17 a report describing— 

18 ‘‘(1) any activity carried out by the Department 

19 of Energy under this Act, including a research, de20 velopment, demonstration, and commercial applica21 tion program for hydrogen and fuel cell technology; 

22 ‘‘(2) measures the Secretary has taken during 

23 the preceding 3 years to support the transition of 

24 primary industry (or a related industry) to a fully 

25 commercialized hydrogen economy; 
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1 ‘‘(3) any change made to a research, develop2 ment, or deployment strategy of the Secretary relat3 ing to hydrogen and fuel cell technology to reflect 

4 the results of a learning demonstration under title 

5 II; 

6 ‘‘(4) progress, including progress in infrastruc7 ture, made toward achieving the goal of producing 

8 and deploying not less than— 

9 ‘‘(A) 100,000 hydrogen-fueled vehicles in 

10 the United States by 2010; and 

11 ‘‘(B) 2,500,000 hydrogen-fueled vehicles by 

12 2020; 

13 ‘‘(5) progress made toward achieving the goal 

14 of supplying hydrogen at a sufficient number of fuel15 ing stations in the United States by 2010 can be 

16 achieved by integrating— 

17 ‘‘(A) hydrogen activities; and 

18 ‘‘(B) associated targets and timetables for 

19 the development of hydrogen technologies; 

20 ‘‘(6) any problem relating to the design, execu21 tion, or funding of a program under this Act; 

22 ‘‘(7) progress made toward and goals achieved 

23 in carrying out this Act and updates to the develop24 mental roadmap, including the results of the reviews 

25 conducted by the National Academy of Sciences 
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1 under subsection (b) for the fiscal years covered by 

2 the report; and 

3 ‘‘(8) any updates to strategic plans that are 

4 necessary to meet the goals described in paragraph 

5 (4). 

6 ‘‘(b) NATIONAL ACADEMY OF SCIENCES.— 

7 ‘‘(1) IN GENERAL.—The Secretary shall enter 

8 into an arrangement with the National Academy of 

9 Sciences to conduct and submit to the Secretary, not 

10 later than September 30, 2007, and triennially 

11 thereafter— 

12 ‘‘(A) the results of a review of the projects 

13 and activities carried out under this Act; 

14 ‘‘(B) recommendations for any new au15 thorities or resources needed to achieve stra16 tegic goals; and 

17 ‘‘(C) recommendations for approaches by 

18 which the Secretary could achieve a substantial 

19 decrease in the dependence on and consumption 

20 of natural gas and imported oil by the Federal 

21 Government, including by increasing the use of 

22 fuel cell vehicles, stationary and portable fuel 

23 cells, and hydrogen energy systems. 

24 ‘‘(2) REAUTHORIZATION.—The Secretary shall 

25 use the results of reviews conducted under para-
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1 graph (1) in proposing to Congress any legislative 

2 changes relating to reauthorization of this Act. 

3 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS. 

4 ‘‘There is authorized to be appropriated to carry out 

5 this title $1,500,000 for each of fiscal years 2006 through 

6 2010. 

7 ‘‘TITLE V—TERMINATION OF 

8 AUTHORITY 

9 ‘‘SEC. 501. TERMINATION OF AUTHORITY. 

10 ‘‘This Act and the authority provided by this Act ter11 minate on September 30, 2015.’’. 

12 TITLE IX—RESEARCH AND 

13 DEVELOPMENT 

14 SEC. 901. SHORT TITLE. 

15 This title may be cited as the ‘‘Energy Research, De16 velopment, Demonstration, and Commercial Application 

17 Act of 2005’’. 

18 SEC. 902. GOALS. 

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

20 of this title, the Secretary shall conduct a balanced set 

21 of programs of energy research, development, demonstra22 tion, and commercial application focused on— 

23 (1) increasing the efficiency of all energy inten24 sive sectors through conservation and improved tech25 nologies; 
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1 (2) promoting diversity of energy supply; 

2 (3) decreasing the dependence of the United 

3 States on foreign energy supplies; 

4 (4) improving the energy security of the United 

5 States; and 

6 (5) decreasing the environmental impact of en7 ergy-related activities. 

8 (b) GOALS.—The Secretary shall publish measurable 

9 cost and performance-based goals with each annual budget 

10 submission in at least the following areas: 

11 (1) Energy efficiency for buildings, energy-con12 suming industries, and vehicles. 

13 (2) Electric energy generation (including dis14 tributed generation), transmission, and storage. 

15 (3) Renewable energy technologies, including 

16 wind power, photovoltaics, solar thermal systems, 

17 geothermal energy, hydrogen-fueled systems, bio18 mass-based systems, biofuels, and hydropower. 

19 (4) Fossil energy, including power generation, 

20 onshore and offshore oil and gas resource recovery, 

21 and transportation. 

22 (5) Nuclear energy, including programs for ex23 isting and advanced reactors, and education of fu24 ture specialists. 
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1 (c) PUBLIC COMMENT.—The Secretary shall provide 

2 mechanisms for input on the annually published goals 

3 from industry, institutions of higher education, and other 

4 public sources. 

5 (d) EFFECT OF GOALS.—Nothing in subsection (a) 

6 or the annually published goals creates any new authority 

7 for any Federal agency, or may be used by any Federal 

8 agency, to support the establishment of regulatory stand9 ards or regulatory requirements. 

10 SEC. 903. DEFINITIONS. 

11 In this title: 

12 (1) DEPARTMENTAL MISSION.—The term ‘‘de13 partmental mission’’ means any of the functions 

14 vested in the Secretary by the Department of En15 ergy Organization Act (42 U.S.C. 7101 et seq.) or 

16 other law. 

17 (2) HISPANIC-SERVING INSTITUTION.—The 

18 term ‘‘Hispanic-serving institution’’ has the meaning 

19 given the term in section 502(a) of the Higher Edu20 cation Act of 1965 (20 U.S.C. 1101a(a)). 

21 (3) NONMILITARY ENERGY LABORATORY.—The 

22 term ‘‘nonmilitary energy laboratory’’ means a Na23 tional Laboratory other than a National Laboratory 

24 listed in subparagraph (G), (H), or (N) of section 

25 2(3). 
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1 (4) PART B INSTITUTION.—The term ‘‘part B 

2 institution’’ has the meaning given the term in sec3 tion 322 of the Higher Education Act of 1965 (20 

4 U.S.C. 1061). 

5 (5) SINGLE-PURPOSE RESEARCH FACILITY.— 

6 The term ‘‘single-purpose research facility’’ means— 

7 (A) any of the primarily single-purpose en8 tities owned by the Department; or 

9 (B) any other organization of the Depart10 ment designated by the Secretary. 

11 Subtitle A—Energy Efficiency 

12 SEC. 911. ENERGY EFFICIENCY. 

13 (a) IN GENERAL.—There are authorized to be appro14 priated to the Secretary to carry out energy efficiency and 

15 conservation research, development, demonstration, and 

16 commercial application activities, including activities au17 thorized under this subtitle— 

18 (1) $772,000,000 for fiscal year 2006; 

19 (2) $865,000,000 for fiscal year 2007; and 

20 (3) $920,000,000 for fiscal year 2008. 

21 (b) ALLOCATIONS.—From amounts authorized under 

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

23 (1) For activities under section 912, 

24 $50,000,000 for each of fiscal years 2006 through 

25 2008. 
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1 (2) For activities under section 914, 

2 $7,000,000 for each of fiscal years 2006 through 

3 2008. 

4 (3) For activities under section 915— 

5 (A) $30,000,000 for fiscal year 2006; 

6 (B) $35,000,000 for fiscal year 2007; and 

7 (C) $40,000,000 for fiscal year 2008. 

8 (c) EXTENDED AUTHORIZATION.—There are author9 ized to be appropriated to the Secretary to carry out sec10 tion 912 $50,000,000 for each of fiscal years 2009 

11 through 2013. 

12 (d) LIMITATIONS.—None of the funds authorized to 

13 be appropriated under this section may be used for— 

14 (1) the issuance or implementation of energy ef15 ficiency regulations; 

16 (2) the weatherization program established 

17 under part A of title IV of the Energy Conservation 

18 and Production Act (42 U.S.C. 6861 et seq.); 

19 (3) a State energy conservation plan established 

20 under part D of title III of the Energy Policy and 

21 Conservation Act (42 U.S.C. 6321 et seq.); or 

22 (4) a Federal energy management measure car23 ried out under part 3 of title V of the National En24 ergy Conservation Policy Act (42 U.S.C. 8251 et 

25 seq.). 
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1 SEC. 912. NEXT GENERATION LIGHTING INITIATIVE. 

2 (a) DEFINITIONS.—In this section: 

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

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

5 semiconducting device package and delivery system 

6 that produces white light using externally applied 

7 voltage. 

8 (2) INDUSTRY ALLIANCE.—The term ‘‘Industry 

9 Alliance’’ means an entity selected by the Secretary 

10 under subsection (d). 

11 (3) INITIATIVE.—The term ‘‘Initiative’’ means 

12 the Next Generation Lighting Initiative carried out 

13 under this section. 

14 (4) RESEARCH.—The term ‘‘research’’ includes 

15 research on the technologies, materials, and manu16 facturing processes required for white light emitting 

17 diodes. 

18 (5) WHITE LIGHT EMITTING DIODE.—The term 

19 ‘‘white light emitting diode’’ means a 

20 semiconducting package, using either organic or in21 organic materials, that produces white light using 

22 externally applied voltage. 

23 (b) INITIATIVE.—The Secretary shall carry out a 

24 Next Generation Lighting Initiative in accordance with 

25 this section to support research, development, demonstra26 tion, and commercial application activities related to ad-
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1 vanced solid-state lighting technologies based on white 

2 light emitting diodes. 

3 (c) OBJECTIVES.—The objectives of the Initiative 

4 shall be to develop advanced solid-state organic and inor5 ganic lighting technologies based on white light emitting 

6 diodes that, compared to incandescent and fluorescent 

7 lighting technologies, are longer lasting, are more energy8 efficient and cost-competitive, and have less environmental 

9 impact. 

10 (d) INDUSTRY ALLIANCE.—Not later than 90 days 

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

12 competitively select an Industry Alliance to represent par13 ticipants who are private, for-profit firms that, as a group, 

14 are broadly representative of United States solid state 

15 lighting research, development, infrastructure, and manu16 facturing expertise as a whole. 

17 (e) RESEARCH.— 

18 (1) GRANTS.—The Secretary shall carry out the 

19 research activities of the Initiative through competi20 tively awarded grants to— 

21 (A) researchers, including Industry Alli22 ance participants; 

23 (B) National Laboratories; and 

24 (C) institutions of higher education. 
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1 (2) INDUSTRY ALLIANCE.—The Secretary shall 

2 annually solicit from the Industry Alliance— 

3 (A) comments to identify solid-state light4 ing technology needs; 

5 (B) an assessment of the progress of the 

6 research activities of the Initiative; and 

7 (C) assistance in annually updating solid8 state lighting technology roadmaps. 

9 (3) AVAILABILITY TO PUBLIC.—The informa10 tion and roadmaps under paragraph (2) shall be 

11 available to the public. 

12 (f) DEVELOPMENT, DEMONSTRATION, AND COMMER13 CIAL APPLICATION.— 

14 (1) IN GENERAL.—The Secretary shall carry 

15 out a development, demonstration, and commercial 

16 application program for the Initiative through com17 petitively selected awards. 

18 (2) PREFERENCE.—In making the awards, the 

19 Secretary may give preference to participants in the 

20 Industry Alliance. 

21 (g) COST SHARING.—In carrying out this section, the 

22 Secretary shall require cost sharing in accordance with 

23 section 1002. 

24 (h) INTELLECTUAL PROPERTY.—The Secretary may 

25 require (in accordance with section 202(a)(ii) of title 35, 
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1 United States Code, section 152 of the Atomic Energy Act 

2 of 1954 (42 U.S.C. 2182), and section 9 of the Federal 

3 Nonnuclear Energy Research and Development Act of 

4 1974 (42 U.S.C. 5908)) that for any new invention devel5 oped under subsection (e)— 

6 (1) that the Industry Alliance participants who 

7 are active participants in research, development, and 

8 demonstration activities related to the advanced 

9 solid-state lighting technologies that are covered by 

10 this section shall be granted the first option to nego11 tiate with the invention owner, at least in the field 

12 of solid-state lighting, nonexclusive licenses and roy13 alties on terms that are reasonable under the cir14 cumstances; 

15 (2)(i) that, for 1 year after a United States 

16 patent is issued for the invention, the patent holder 

17 shall not negotiate any license or royalty with any 

18 entity that is not a participant in the Industry Alli19 ance described in paragraph (1); and 

20 (ii) that, during the year described in clause (i), 

21 the patent holder shall negotiate nonexclusive li22 censes and royalties in good faith with any inter23 ested participant in the Industry Alliance described 

24 in paragraph (1); and 
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1 (3) such other terms as the Secretary deter2 mines are required to promote accelerated commer3 cialization of inventions made under the Initiative. 

4 (i) NATIONAL ACADEMY REVIEW.—The Secretary 

5 shall enter into an arrangement with the National Acad6 emy of Sciences to conduct periodic reviews of the Initia7 tive. 

8 SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE. 

9 (a) INTERAGENCY GROUP.— 

10 (1) IN GENERAL.—Not later than 90 days after 

11 the date of enactment of this Act, the Director of 

12 the Office of Science and Technology Policy shall es13 tablish an interagency group to develop, in coordina14 tion with the advisory committee established under 

15 subsection (e), a National Building Performance Ini16 tiative (referred to in this section as the ‘‘Initia17 tive’’). 

18 (2) COCHAIRS.—The interagency group shall be 

19 co-chaired by appropriate officials of the Depart20 ment and the Department of Commerce, who shall 

21 jointly arrange for the provision of necessary admin22 istrative support to the group. 

23 (b) INTEGRATION OF EFFORTS.—The Initiative shall 

24 integrate Federal, State, and voluntary private sector ef25 forts to reduce the costs of construction, operation, main-
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1 tenance, and renovation of commercial, industrial, institu2 tional, and residential buildings. 

3 (c) PLAN.— 

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

5 the date of enactment of this Act, the interagency 

6 group shall submit to Congress a plan for carrying 

7 out the appropriate Federal role in the Initiative. 

8 (2) INCLUSIONS.—The plan shall include— 

9 (A) research, development, demonstration, 

10 and commercial application of systems and ma11 terials for new construction and retrofit relating 

12 to the building envelope and building system 

13 components; 

14 (B) research, development, demonstration, 

15 and commercial application to develop tech16 nology and infrastructure enabling the energy 

17 efficient, automated operation of buildings and 

18 building equipment; and 

19 (C) the collection, analysis, and dissemina20 tion of research results and other pertinent in21 formation on enhancing building performance to 

22 industry, government entities, and the public. 

23 (d) DEPARTMENT OF ENERGY ROLE.—Within the 

24 Federal portion of the Initiative, the Department shall be 
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1 the lead agency for all aspects of building performance re2 lated to use and conservation of energy. 

3 (e) ADVISORY COMMITTEE.—The Director of the Of4 fice of Science and Technology Policy shall establish an 

5 advisory committee to— 

6 (1) analyze and provide recommendations on 

7 potential private sector roles and participation in the 

8 Initiative; and 

9 (2) review and provide recommendations on the 

10 plan described in subsection (c). 

11 (f) ADMINISTRATION.—Nothing in this section pro12 vides any Federal agency with new authority to regulate 

13 building performance. 

14 SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE 

15 PROGRAM. 

16 (a) DEFINITIONS.—In this section: 

17 (1) BATTERY.—The term ‘‘battery’’ means an 

18 energy storage device that previously has been used 

19 to provide motive power in a vehicle powered in 

20 whole or in part by electricity. 

21 (2) ASSOCIATED EQUIPMENT.—The term ‘‘asso22 ciated equipment’’ means equipment located where 

23 the batteries will be used that is necessary to enable 

24 the use of the energy stored in the batteries. 

25 (b) PROGRAM.— 
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1 (1) IN GENERAL.—The Secretary shall establish 

2 and conduct a research, development, demonstration, 

3 and commercial application program for the sec4 ondary use of batteries. 

5 (2) ADMINISTRATION.—The program shall be— 

6 (A) designed to demonstrate the use of 

7 batteries in secondary applications, including 

8 utility and commercial power storage and power 

9 quality; 

10 (B) structured to evaluate the perform11 ance, including useful service life and costs, of 

12 such batteries in field operations, and the nec13 essary supporting infrastructure, including 

14 reuse and disposal of batteries; and 

15 (C) coordinated with ongoing secondary 

16 battery use programs at the National Labora17 tories and in industry. 

18 (c) SOLICITATION.— 

19 (1) IN GENERAL.—Not later than 180 days 

20 after the date of enactment of this Act, the Sec21 retary shall solicit proposals to demonstrate the sec22 ondary use of batteries and associated equipment 

23 and supporting infrastructure in geographic loca24 tions throughout the United States. 
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1 (2) ADDITIONAL SOLICITATIONS.—The Sec2 retary may make additional solicitations for pro3 posals if the Secretary determines that the solicita4 tions are necessary to carry out this section. 

5 (d) SELECTION OF PROPOSALS.— 

6 (1) IN GENERAL.—Not later than 90 days after 

7 the closing date established by the Secretary for re8 ceipt of proposals under subsection (c), the Sec9 retary shall select up to 5 proposals that may receive 

10 financial assistance under this section once the De11 partment receives appropriated funds to carry out 

12 this section. 

13 (2) FACTORS.—In selecting proposals, the Sec14 retary shall consider— 

15 (A) the diversity of battery type; 

16 (B) geographic and climatic diversity; and 

17 (C) life-cycle environmental effects of the 

18 approaches. 

19 (3) LIMITATION.—No 1 project selected under 

20 this section shall receive more than 25 percent of the 

21 funds made available to carry out the program 

22 under this section. 

23 (4) NONFEDERAL INVOLVEMENT.—In selecting 

24 proposals, the Secretary shall consider the extent of 

25 involvement of State or local government and other 
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1 persons in each demonstration project to optimize 

2 use of Federal resources. 

3 (5) OTHER CRITERIA.—In selecting proposals, 

4 the Secretary may consider such other criteria as the 

5 Secretary considers appropriate. 

6 (e) CONDITIONS.—In carrying out this section, the 

7 Secretary shall require that— 

8 (1) relevant information be provided to— 

9 (A) the Department; 

10 (B) the users of the batteries; 

11 (C) the proposers of a project under this 

12 section; and 

13 (D) the battery manufacturers; and 

14 (2) the costs of carrying out projects and activi15 ties under this section are shared in accordance with 

16 section 1002. 

17 SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE. 

18 (a) ESTABLISHMENT.—The Secretary shall establish 

19 an Energy Efficiency Science Initiative to be managed by 

20 the Assistant Secretary in the Department with responsi21 bility for energy conservation under section 203(a)(9) of 

22 the Department of Energy Organization Act (42 U.S.C. 

23 7133(a)(9)), in consultation with the Director of the Of24 fice of Science, for grants to be competitively awarded and 
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1 subject to peer review for research relating to energy effi2 ciency. 

3 (b) REPORT.—The Secretary shall submit to Con4 gress, along with the annual budget request of the Presi5 dent submitted to Congress, a report on the activities of 

6 the Energy Efficiency Science Initiative, including a de7 scription of the process used to award the funds and an 

8 explanation of how the research relates to energy effi9 ciency. 

10 Subtitle B—Distributed Energy and 

11 Electric Energy Systems 

12 SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 

13 SYSTEMS. 

14 (a) IN GENERAL.— 

15 (1) DISTRIBUTED ENERGY AND ELECTRIC EN16 ERGY SYSTEMS ACTIVITIES.—There are authorized 

17 to be appropriated to the Secretary to carry out dis18 tributed energy and electric energy systems activi19 ties, including activities authorized under this sub20 title— 

21 (A) $220,000,000 for fiscal year 2006; 

22 (B) $240,000,000 for fiscal year 2007; and 

23 (C) $260,000,000 for fiscal year 2008. 

24 (2) POWER DELIVERY RESEARCH INITIATIVE.— 

25 There are authorized to be appropriated to the Sec-
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1 retary to carry out the Policy Delivery Research Ini2 tiative under subsection 925(e)— 

3 (A) $30,000,000 for fiscal year 2006; 

4 (B) $35,000,000 for fiscal year 2007; and 

5 (C) $40,000,000 for fiscal year 2008. 

6 (b) MICRO-COGENERATION ENERGY TECH7 NOLOGY.—From amounts authorized under subsection 

8 (a), $20,000,000 for each of fiscal years 2006 and 2007 

9 shall be available to carry out activities under section 924. 

10 SEC. 922. HIGH POWER DENSITY INDUSTRY PROGRAM. 

11 (a) IN GENERAL.—The Secretary shall establish a 

12 comprehensive research, development, demonstration, and 

13 commercial application program to improve the energy ef14 ficiency of high power density facilities, including data 

15 centers, server farms, and telecommunications facilities. 

16 (b) TECHNOLOGIES.—The program shall consider 

17 technologies that provide significant improvement in ther18 mal controls, metering, load management, peak load re19 duction, or the efficient cooling of electronics. 

20 SEC. 923. MICRO-COGENERATION ENERGY TECHNOLOGY. 

21 (a) IN GENERAL.—The Secretary shall make com22 petitive, merit-based grants to consortia for the develop23 ment of micro-cogeneration energy technology. 

24 (b) USES.—The consortia shall explore— 
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1 (1) the use of small-scale combined heat and 

2 power in residential heating appliances; 

3 (2) the use of excess power to operate other ap4 pliances within the residence; and 

5 (3) the supply of excess generated power to the 

6 power grid. 

7 SEC. 924. DISTRIBUTED ENERGY TECHNOLOGY DEM8 ONSTRATION PROGRAM. 

9 The Secretary may provide financial assistance to co10 ordinating consortia of interdisciplinary participants for 

11 demonstrations designed to accelerate the use of distrib12 uted energy technologies (such as fuel cells, microturbines, 

13 reciprocating engines, thermally activated technologies, 

14 and combined heat and power systems) in highly energy 

15 intensive commercial applications. 

16 SEC. 925. ELECTRIC TRANSMISSION AND DISTRIBUTION 

17 PROGRAMS. 

18 (a) DEMONSTRATION PROGRAM.—The Secretary 

19 shall establish a comprehensive research, development, 

20 and demonstration program to ensure the reliability, effi21 ciency, and environmental integrity of electrical trans22 mission and distribution systems, which shall include— 

23 (1) advanced energy and energy storage tech24 nologies, materials, and systems, giving priority to 

25 new transmission technologies, including composite 
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1 conductor materials and other technologies that en2 hance reliability, operational flexibility, or power-car3 rying capability; 

4 (2) advanced grid reliability and efficiency tech5 nology development; 

6 (3) technologies contributing to significant load 

7 reductions; 

8 (4) advanced metering, load management, and 

9 control technologies; 

10 (5) technologies to enhance existing grid compo11 nents; 

12 (6) the development and use of high-tempera13 ture superconductors to— 

14 (A) enhance the reliability, operational 

15 flexibility, or power-carrying capability of elec16 tric transmission or distribution systems; or 

17 (B) increase the efficiency of electric en18 ergy generation, transmission, distribution, or 

19 storage systems; 

20 (7) integration of power systems, including sys21 tems to deliver high-quality electric power, electric 

22 power reliability, and combined heat and power; 

23 (8) supply of electricity to the power grid by 

24 small scale, distributed and residential-based power 

25 generators; 
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1 (9) the development and use of advanced grid 

2 design, operation, and planning tools; 

3 (10) any other infrastructure technologies, as 

4 appropriate; and 

5 (11) technology transfer and education. 

6 (b) PROGRAM PLAN.— 

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

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

9 consultation with other appropriate Federal agen10 cies, shall prepare and submit to Congress a 5-year 

11 program plan to guide activities under this section. 

12 (2) CONSULTATION.—In preparing the program 

13 plan, the Secretary shall consult with— 

14 (A) utilities; 

15 (B) energy service providers; 

16 (C) manufacturers; 

17 (D) institutions of higher education; 

18 (E) other appropriate State and local 

19 agencies; 

20 (F) environmental organizations; 

21 (G) professional and technical societies; 

22 and 

23 (H) any other persons the Secretary con24 siders appropriate. 
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1 (c) IMPLEMENTATION.—The Secretary shall consider 

2 implementing the program under this section using a con3 sortium of participants from industry, institutions of high4 er education, and National Laboratories. 

5 (d) REPORT.—Not later than 2 years after the sub6 mission of the plan under subsection (b), the Secretary 

7 shall submit to Congress a report— 

8 (1) describing the progress made under this 

9 section; and 

10 (2) identifying any additional resources needed 

11 to continue the development and commercial applica12 tion of transmission and distribution of infrastruc13 ture technologies. 

14 (e) POWER DELIVERY RESEARCH INITIATIVE.— 

15 (1) IN GENERAL.—The Secretary shall establish 

16 a research, development, and demonstration initia17 tive specifically focused on power delivery using com18 ponents incorporating high temperature super19 conductivity. 

20 (2) GOALS.—The goals of the Initiative shall 

21 be— 

22 (A) to establish world-class facilities to de23 velop high temperature superconductivity power 

24 applications in partnership with manufacturers 

25 and utilities; 
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1 (B) to provide technical leadership for es2 tablishing reliability for high temperature 

3 superconductivity power applications, including 

4 suitable modeling and analysis; 

5 (C) to facilitate the commercial transition 

6 toward direct current power transmission, stor7 age, and use for high power systems using high 

8 temperature superconductivity; and 

9 (D) to facilitate the integration of very low 

10 impedance high temperature superconducting 

11 wires and cables in existing electric networks to 

12 improve system performance, power flow con13 trol, and reliability. 

14 (3) INCLUSIONS.—The Initiative shall include— 

15 (A) feasibility analysis, planning, research, 

16 and design to construct demonstrations of 

17 superconducting links in high power, direct cur18 rent, and controllable alternating current trans19 mission systems; 

20 (B) public-private partnerships to dem21 onstrate deployment of high temperature super22 conducting cable into testbeds simulating a re23 alistic transmission grid and under varying 

24 transmission conditions, including actual grid 

25 insertions; and 
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1 (C) testbeds developed in cooperation with 

2 National Laboratories, industries, and institu3 tions of higher education to— 

4 (i) demonstrate those technologies; 

5 (ii) prepare the technologies for com6 mercial introduction; and 

7 (iii) address cost or performance road8 blocks to successful commercial use. 

9 (f) TRANSMISSION AND DISTRIBUTION GRID PLAN10 NING AND OPERATIONS INITIATIVE.— 

11 (1) IN GENERAL.—The Secretary shall establish 

12 a research, development, and demonstration initia13 tive specifically focused on tools needed to plan, op14 erate, and expand the transmission and distribution 

15 grids in the presence of competitive market mecha16 nisms for energy, load demand, customer response, 

17 and ancillary services. 

18 (2) GOALS.—The goals of the Initiative shall 

19 be— 

20 (A)(i) to develop and use a geographically 

21 distributed center, consisting of institutions of 

22 higher education, and National Laboratories, 

23 with expertise and facilities to develop the un24 derlying theory and software for power system 

25 application; and 
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1 (ii) to ensure commercial development in 

2 partnership with software vendors and utilities; 

3 (B) to provide technical leadership in engi4 neering and economic analysis for the reliability 

5 and efficiency of power systems planning and 

6 operations in the presence of competitive mar7 kets for electricity; 

8 (C) to model, simulate, and experiment 

9 with new market mechanisms and operating 

10 practices to understand and optimize those new 

11 methods before actual use; and 

12 (D) to provide technical support and tech13 nology transfer to electric utilities and other 

14 participants in the domestic electric industry 

15 and marketplace. 

16 Subtitle C—Renewable Energy 

17 SEC. 931. RENEWABLE ENERGY. 

18 (a) IN GENERAL.—There are authorized to be appro19 priated to the Secretary to carry out renewable energy re20 search, development, demonstration, and commercial ap21 plication activities, including activities authorized under 

22 this subtitle— 

23 (1) $610,000,000 for fiscal year 2006; 

24 (2) $659,000,000 for fiscal year 2007; and 

25 (3) $710,000,000 for fiscal year 2008. 
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1 (b) BIOENERGY.—From the amounts authorized 

2 under subsection (a), there are authorized to be appro3 priated to carry out section 932— 

4 (1) $167,650,000 for fiscal year 2006; 

5 (2) $180,000,000 for fiscal year 2007; and 

6 (3) $192,000,000 for fiscal year 2008. 

7 (c) CONCENTRATING SOLAR POWER.—From 

8 amounts authorized under subsection (a), there is author9 ized to be appropriated to carry out section 933 

10 $50,000,000 for each of fiscal years 2006 through 2008. 

11 (d) ADMINISTRATION.—Of the funds authorized 

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

13 fiscal year shall be made available for grants to— 

14 (1) part B institutions; 

15 (2) Tribal Colleges or Universities (as defined 

16 in section 316(b) of the Higher Education Act of 

17 1965 (20 U.S.C. 1059c(b))); and 

18 (3) Hispanic-serving institutions. 

19 (e) CONSULTATION.—In carrying out this section, the 

20 Secretary, in consultation with the Secretary of Agri21 culture, shall demonstrate the use of— 

22 (1) advanced wind power technology, including 

23 combined use with coal gasification; 

24 (2) biomass; 

25 (3) geothermal energy systems; and 
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1 (4) other renewable energy technologies to as2 sist in delivering electricity to rural and remote loca3 tions. 

4 SEC. 932. BIOENERGY PROGRAM. 

5 (a) DEFINITION OF CELLULOSIC FEEDSTOCK.—In 

6 this section, the term ‘‘cellulosic feedstock’’ means any 

7 portion of a crop not normally used in food production 

8 or any nonfood crop grown for the purpose of producing 

9 biomass feedstock. 

10 (b) PROGRAM.—The Secretary shall conduct a pro11 gram of research, development, demonstration, and com12 mercial application for bioenergy, including— 

13 (1) biopower energy systems; 

14 (2) biofuels; 

15 (3) bioproducts; 

16 (4) integrated biorefineries that may produce 

17 biopower, biofuels, and bioproducts; 

18 (5) cross-cutting research and development in 

19 feedstocks; and 

20 (6) economic analysis. 

21 (c) BIOFUELS AND BIOPRODUCTS.—The goals of the 

22 biofuels and bioproducts programs shall be to develop, in 

23 partnership with industry and institutions of higher edu24 cation— 
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1 (1) advanced biochemical and thermochemical 

2 conversion technologies capable of making fuels from 

3 cellulosic feedstocks that are price-competitive with 

4 gasoline or diesel in either internal combustion en5 gines or fuel cell-powered vehicles; 

6 (2) advanced biotechnology processes capable of 

7 making biofuels and bioproducts with emphasis on 

8 development of biorefinery technologies using en9 zyme-based processing systems; 

10 (3) advanced biotechnology processes capable of 

11 increasing energy production from cellulosic feed12 stocks, with emphasis on reducing the dependence of 

13 industry on fossil fuels in manufacturing facilities; 

14 and 

15 (4) other advanced processes that will enable 

16 the development of cost-effective bioproducts, includ17 ing biofuels. 

18 (d) REPEAL OF SUNSET PROVISION.—Section 311 of 

19 the Biomass Research and Development Act of 2000 (7 

20 U.S.C. 8101 note) is repealed. 

21 SEC. 933. CONCENTRATING SOLAR POWER RESEARCH PRO22 GRAM. 

23 (a) IN GENERAL.—The Secretary shall conduct a 

24 program of research and development to evaluate the po25 tential for concentrating solar power for hydrogen produc-
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1 tion, including cogeneration approaches for both hydrogen 

2 and electricity. 

3 (b) ADMINISTRATION.—The program shall take ad4 vantage of existing facilities to the extent practicable and 

5 shall include— 

6 (1) development of optimized technologies that 

7 are common to both electricity and hydrogen produc8 tion; 

9 (2) evaluation of thermochemical cycles for hy10 drogen production at the temperatures attainable 

11 with concentrating solar power; 

12 (3) evaluation of materials issues for the 

13 thermochemical cycles described in paragraph (2); 

14 (4) cogeneration of solar thermal electric power 

15 and photo-synthetic-based hydrogen production; 

16 (5) system architectures and economics studies; 

17 and 

18 (6) coordination with activities under the Ad19 vanced Reactor Hydrogen Co-generation Project es20 tablished under subtitle C of title VI on high tem21 perature materials, thermochemical cycles, and eco22 nomic issues. 

23 (c) ASSESSMENT.—In carrying out the program 

24 under this section, the Secretary shall— 
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1 (1) assess conflicting guidance on the economic 

2 potential of concentrating solar power for electricity 

3 production received from the National Research 

4 Council in the report entitled ‘‘Renewable Power 

5 Pathways: A Review of the U.S. Department of En6 ergy’s Renewable Energy Programs’’ and dated 

7 2000 and subsequent reviews of that report funded 

8 by the Department; and 

9 (2) provide an assessment of the potential im10 pact of technology used to concentrate solar power 

11 for electricity before, or concurrent with, submission 

12 of the budget for fiscal year 2007. 

13 (d) REPORT.—Not later than 5 years after the date 

14 of enactment of this Act, the Secretary shall provide to 

15 Congress a report on the economic and technical potential 

16 for electricity or hydrogen production, with or without co17 generation, with concentrating solar power, including the 

18 economic and technical feasibility of potential construction 

19 of a pilot demonstration facility suitable for commercial 

20 production of electricity or hydrogen from concentrating 

21 solar power. 

22 SEC. 934. HYBRID SOLAR LIGHTING RESEARCH AND DEVEL23 OPMENT PROGRAM. 

24 (a) DEFINITION OF HYBRID SOLAR LIGHTING.—In 

25 this section, the term ‘‘hybrid solar lighting’’ means a 
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1 novel lighting system that integrates sunlight and elec2 trical lighting in complement to each other in common 

3 lighting fixtures for the purpose of improving energy effi4 ciency. 

5 (b) PROGRAM.—The Secretary shall conduct a pro6 gram of research, development, demonstration, and com7 mercial application for hybrid solar lighting aimed at de8 veloping hybrid solar lighting systems that are— 

9 (1) designed to eliminate large roof penetra10 tions and associated architectural design and main11 tenance problems that limit the conventional use of 

12 daylight in most buildings; 

13 (2) easily integrated with electric lights; and 

14 (3) compatible with a majority of electric lamps 

15 and light fixtures. 

16 (c) LIMITATIONS.—Funding authorized under this 

17 section shall not be used for lighting systems based on 

18 conventional daylighting installations such as skylights, 

19 light wells, light shelves, or roof monitors. 

20 (d) NATIONAL ACADEMY OF SCIENCES.—Not later 

21 than 2 years after the date of enactment of this Act, the 

22 Secretary shall enter into an arrangement with the Na23 tional Academy of Sciences to conduct a biannual review 

24 of the activities under this section including program pri-
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1 orities, technical milestones, and opportunities for tech2 nology transfer and commercialization. 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this sec5 tion— 

6 (1) $4,000,000 for fiscal year 2006; 

7 (2) $6,000,000 for fiscal year 2007; and 

8 (3) $6,000,000 for fiscal year 2008. 

9 SEC. 935. MISCELLANEOUS PROJECTS. 

10 The Secretary shall conduct research, development, 

11 demonstration, and commercial application programs 

12 for— 

13 (1) ocean energy, including wave energy; 

14 (2) the combined use of renewable energy tech15 nologies with 1 another and with other energy tech16 nologies, including the combined use of wind power 

17 and coal gasification technologies; and 

18 (3) renewable energy technologies for cogenera19 tion of hydrogen and electricity. 

20 Subtitle D—Nuclear Energy 

21 SEC. 941. NUCLEAR ENERGY. 

22 (a) CORE PROGRAMS.—There are authorized to be 

23 appropriated to the Secretary to carry out nuclear energy 

24 research, development, demonstration, and commercial ap25 plication activities, including activities authorized under 
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1 this subtitle, other than those described in subsection 

2 (b)— 

3 (1) $330,000,000 for fiscal year 2006; 

4 (2) $355,000,000 for fiscal year 2007; and 

5 (3) $495,000,000 for fiscal year 2008. 

6 (b) NUCLEAR INFRASTRUCTURE SUPPORT.—There 

7 are authorized to be appropriated to the Secretary to carry 

8 out activities under section 942(f): 

9 (1) $135,000,000 for fiscal year 2006; 

10 (2) $140,000,000 for fiscal year 2007; and 

11 (3) $145,000,000 for fiscal year 2008. 

12 (c) ALLOCATIONS.—From amounts authorized under 

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

14 (1) For activities under section 943— 

15 (A) $150,000,000 for fiscal year 2006; 

16 (B) $155,000,000 for fiscal year 2007; and 

17 (C) $275,000,000 for fiscal year 2008. 

18 (2) For activities under section 944— 

19 (A) $43,600,000 for fiscal year 2006; 

20 (B) $50,100,000 for fiscal year 2007; and 

21 (C) $56,000,000 for fiscal year 2008. 

22 (3) For activities under section 946, 

23 $6,000,000 for each of fiscal years 2006 through 

24 2008. 
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1 (d) LIMITATION.—None of the funds authorized 

2 under this section may be used to decommission the Fast 

3 Flux Test Facility. 

4 SEC. 942. NUCLEAR ENERGY RESEARCH PROGRAMS. 

5 (a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 

6 Secretary shall carry out a Nuclear Energy Research Ini7 tiative for research and development related to nuclear en8 ergy. 

9 (b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO10 GRAM.—The Secretary shall carry out a Nuclear Energy 

11 Plant Optimization Program to support research and de12 velopment activities addressing reliability, availability, pro13 ductivity, component aging, safety, and security of existing 

14 nuclear power plants. 

15 (c) NUCLEAR POWER 2010 PROGRAM.— 

16 (1) IN GENERAL.—The Secretary shall carry 

17 out a Nuclear Power 2010 Program, consistent with 

18 recommendations of the Nuclear Energy Research 

19 Advisory Committee of the Department in the report 

20 entitled ‘‘A Roadmap to Deploy New Nuclear Power 

21 Plants in the United States by 2010’’ and dated Oc22 tober 2001. 

23 (2) ADMINISTRATION.—The Program shall in24 clude— 
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1 (A) use of the expertise and capabilities of 

2 industry, institutions of higher education, and 

3 National Laboratories in evaluation of advanced 

4 nuclear fuel cycles and fuels testing; 

5 (B) consideration of a variety of reactor 

6 designs suitable for both developed and devel7 oping nations; 

8 (C) participation of international collabo9 rators in research, development, and design ef10 forts, as appropriate; and 

11 (D) encouragement for participation by in12 stitutions of higher education and industry. 

13 (d) GENERATION IV NUCLEAR ENERGY SYSTEMS

14 INITIATIVE.— 

15 (1) IN GENERAL.—The Secretary shall carry 

16 out a Generation IV Nuclear Energy Systems Initia17 tive to develop an overall technology plan for and to 

18 support research and development necessary to make 

19 an informed technical decision about the most prom20 ising candidates for eventual commercial application. 

21 (2) ADMINISTRATION.—In conducting the Ini22 tiative, the Secretary shall examine advanced pro23 liferation-resistant and passively safe reactor de24 signs, including designs that— 
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1 (A) are economically competitive with other 

2 electric power generation plants; 

3 (B) have higher efficiency, lower cost, and 

4 improved safety compared to reactors in oper5 ation on the date of enactment of this Act; 

6 (C) use fuels that are proliferation resist7 ant and have substantially reduced production 

8 of high-level waste per unit of output; and 

9 (D) use improved instrumentation. 

10 (e) REACTOR PRODUCTION OF HYDROGEN.—The 

11 Secretary shall carry out research to examine designs for 

12 high-temperature reactors capable of producing large-scale 

13 quantities of hydrogen using thermochemical processes. 

14 (f) NUCLEAR INFRASTRUCTURE SUPPORT.— 

15 (1) IN GENERAL.—The Secretary shall— 

16 (A) develop and implement a strategy for 

17 the facilities of the Office of Nuclear Energy, 

18 Science, and Technology; and 

19 (B) submit to Congress a report describing 

20 the strategy, along with the budget request of 

21 the President submitted to Congress for fiscal 

22 year 2006. 

23 (2) ADMINISTRATION.—The strategy shall pro24 vide a cost-effective means for— 
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1 (A) maintaining existing facilities and in2 frastructure; 

3 (B) closing unneeded facilities; 

4 (C) making facility upgrades and modifica5 tions; and 

6 (D) building new facilities. 

7 SEC. 943. ADVANCED FUEL CYCLE INITIATIVE. 

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

9 Director of the Office of Nuclear Energy, Science and 

10 Technology, shall conduct an advanced fuel recycling tech11 nology research and development program (referred to in 

12 this section as the ‘‘program’’) to evaluate proliferation13 resistant fuel recycling and transmutation technologies 

14 that minimize environmental or public health and safety 

15 impacts as an alternative to aqueous reprocessing tech16 nologies deployed as of the date of enactment of this Act 

17 in support of evaluation of alternative national strategies 

18 for spent nuclear fuel and the Generation IV advanced re19 actor concepts. 

20 (b) ANNUAL REVIEW.—The program shall be subject 

21 to annual review by the Nuclear Energy Research Advi22 sory Committee of the Department or other independent 

23 entity, as appropriate. 

24 (c) INTERNATIONAL COOPERATION.—In carrying out 

25 the program, the Secretary is encouraged to seek opportu-
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1 nities to enhance the progress of the program through 

2 international cooperation. 

3 (d) REPORTS.—The Secretary shall submit, as part 

4 of the annual budget submission of the Department, a re5 port on the activities of the program. 

6 SEC. 944. NUCLEAR SCIENCE AND ENGINEERING SUPPORT 

7 FOR INSTITUTIONS OF HIGHER EDUCATION. 

8 (a) ESTABLISHMENT.—The Secretary shall support 

9 a program to invest in human resources and infrastructure 

10 in the nuclear sciences and engineering and related fields 

11 (including health physics and nuclear and radiochemistry), 

12 consistent with departmental missions related to civilian 

13 nuclear research and development. 

14 (b) DUTIES.— 

15 (1) IN GENERAL.—In carrying out the program 

16 under this section, the Secretary shall— 

17 (A) establish fellowship and faculty assist18 ance programs; and 

19 (B) provide support for fundamental re20 search and encourage collaborative research 

21 among industry, National Laboratories, and in22 stitutions of higher education through the Nu23 clear Energy Research Initiative established 

24 under section 942(a). 
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1 (2) ENTIRE FUEL CYCLE.—The Secretary is en2 couraged to support activities addressing the entire 

3 fuel cycle through involvement of the Office of Nu4 clear Energy, Science and Technology and the Office 

5 of Civilian Radioactive Waste Management. 

6 (3) OUTREACH.—The Secretary shall support 

7 communication and outreach related to nuclear 

8 science, engineering, and nuclear waste manage9 ment. 

10 (c) MAINTAINING RESEARCH AND TRAINING REAC11 TORS AND ASSOCIATED INFRASTRUCTURE IN INSTITU12 TIONS OF HIGHER EDUCATION.—Activities under this sec13 tion may include— 

14 (1) converting research reactors currently using 

15 high-enrichment fuels to low-enrichment fuels; 

16 (2) upgrading operational instrumentation; 

17 (3) sharing of reactors among institutions of 

18 higher education; 

19 (4) providing technical assistance, in collabora20 tion with the United States nuclear industry, in reli21 censing and upgrading training reactors as part of 

22 a student training program; and 

23 (5) providing funding for reactor improvements 

24 as part of a focused effort that emphasizes research, 

25 training, and education. 
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1 (d) INTERACTIONS BETWEEN NATIONAL LABORA2 TORIES AND INSTITUTIONS OF HIGHER EDUCATION.— 

3 The Secretary shall develop sabbatical fellowship and vis4 iting scientist programs to encourage sharing of personnel 

5 between National Laboratories and institutions of higher 

6 education. 

7 (e) OPERATING AND MAINTENANCE COSTS.—Fund8 ing for a research project provided under this section may 

9 be used to offset a portion of the operating and mainte10 nance costs of a research reactor at an institution of high11 er education used in the research project. 

12 SEC. 945. SECURITY OF NUCLEAR FACILITIES. 

13 The Secretary, acting through the Director of the Of14 fice of Nuclear Energy, Science and Technology, shall con15 duct a research and development program on cost-effective 

16 technologies for increasing— 

17 (1) the safety of nuclear facilities from natural 

18 phenomena; and 

19 (2) the security of nuclear facilities from delib20 erate attacks. 

21 SEC. 946. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE 

22 SOURCES. 

23 (a) SURVEY.— 

24 (1) IN GENERAL.—Not later than August 1, 

25 2006, the Secretary shall submit to Congress the re-
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1 sults of a survey of industrial applications of large 

2 radioactive sources. 

3 (2) ADMINISTRATION.—The survey shall— 

4 (A) consider well-logging sources as 1 class 

5 of industrial sources; 

6 (B) include information on current domes7 tic and international Department, Department 

8 of Defense, State Department, and commercial 

9 programs to manage and dispose of radioactive 

10 sources; and 

11 (C) analyze available disposal options for 

12 currently deployed or future sources and, if de13 ficiencies are noted for either deployed or future 

14 sources, recommend legislative options that 

15 Congress may consider to remedy identified de16 ficiencies. 

17 (b) PLAN.— 

18 (1) IN GENERAL.—In conjunction with the sur19 vey conducted under subsection (a), the Secretary 

20 shall establish a research and development program 

21 to develop alternatives to sources described in sub22 section (a) that reduce safety, environmental, or pro23 liferation risks to either workers using the sources or 

24 the public. 
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1 (2) ACCELERATORS.—Miniaturized particle ac2 celerators for well-logging or other industrial appli3 cations and portable accelerators for production of 

4 short-lived radioactive materials at an industrial site 

5 shall be considered as part of the research and de6 velopment efforts. 

7 (3) REPORT.—Not later than August 1, 2006, 

8 the Secretary shall submit to Congress a report de9 scribing the details of the program plan. 

10 Subtitle E—Fossil Energy 

11 SEC. 951. FOSSIL ENERGY. 

12 (a) IN GENERAL.—There are authorized to be appro13 priated to the Secretary to carry out fossil energy re14 search, development, demonstration, and commercial ap15 plication activities, including activities authorized under 

16 this subtitle— 

17 (1) $583,000,000 for fiscal year 2006; 

18 (2) $611,000,000 for fiscal year 2007; and 

19 (3) $626,000,000 for fiscal year 2008. 

20 (b) ALLOCATIONS.—From amounts authorized under 

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

22 (1) For activities under section 952(b)(2), 

23 $28,000,000 for each of fiscal years 2006 through 

24 2008. 
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1 (2) For activities under section 954, 

2 $20,000,000 for each of fiscal years 2006 through 

3 2008. 

4 (3) For activities under section 955— 

5 (A) $285,000,000 for fiscal year 2006; 

6 (B) $298,000,000 for fiscal year 2007; and 

7 (C) $308,000,000 for fiscal year 2008. 

8 (4) For the Office of Arctic Energy under sec9 tion 3197 of the Floyd D. Spence National Defense 

10 Authorization Act for Fiscal Year 2001 (42 U.S.C. 

11 7144d) $25,000,000 for each of fiscal years 2006 

12 through 2008. 

13 (c) EXTENDED AUTHORIZATION.—There are author14 ized to be appropriated to the Secretary for the Office of 

15 Arctic Energy established under section 3197 of the Floyd 

16 D. Spence National Defense Authorization Act for Fiscal 

17 Year 2001 (42 U.S.C. 7144d) $25,000,000 for each of 

18 fiscal years 2009 through 2012. 

19 (d) LIMITATIONS.— 

20 (1) USES.—None of the funds authorized under 

21 this section may be used for Fossil Energy Environ22 mental Restoration or Import/Export Authorization. 

23 (2) INSTITUTIONS OF HIGHER EDUCATION.—Of 

24 the funds authorized under subsection (b)(2), not 

25 less than 20 percent of the funds appropriated for 
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1 each fiscal year shall be dedicated to research and 

2 development carried out at institutions of higher 

3 education. 

4 SEC. 952. OIL AND GAS RESEARCH PROGRAMS. 

5 (a) OIL AND GAS RESEARCH.—The Secretary shall 

6 conduct a program of research, development, demonstra7 tion, and commercial application of oil and gas, includ8 ing— 

9 (1) exploration and production; 

10 (2) gas hydrates; 

11 (3) reservoir life and extension; 

12 (4) transportation and distribution infrastruc13 ture; 

14 (5) ultraclean fuels; 

15 (6) heavy oil and shale; and 

16 (7) related environmental research. 

17 (b) FUEL CELLS.— 

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

19 a program of research, development, demonstration, 

20 and commercial application on fuel cells for low-cost, 

21 high-efficiency, fuel-flexible, modular power systems. 

22 (2) DEMONSTRATIONS.—The demonstrations 

23 shall include fuel cell proton exchange membrane 

24 technology for commercial, residential, and transpor25 tation applications, and distributed generation sys-
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1 tems, using improved manufacturing production and 

2 processes. 

3 (c) NATURAL GAS AND OIL DEPOSITS REPORT.— 

4 Not later than 2 years after the date of enactment of this 

5 Act and every 2 years thereafter, the Secretary of the Inte6 rior, in consultation with other appropriate Federal agen7 cies, shall submit to Congress a report on the latest esti8 mates of natural gas and oil reserves, reserves growth, and 

9 undiscovered resources in Federal and State waters off the 

10 coast of Louisiana, Texas, Alabama, and Mississippi. 

11 (d) INTEGRATED CLEAN POWER AND ENERGY RE12 SEARCH.— 

13 (1) ESTABLISHMENT OF CENTER.—The Sec14 retary shall establish a national center or consortium 

15 of excellence in clean energy and power generation, 

16 using the resources of the Clean Power and Energy 

17 Research Consortium in existence on the date of en18 actment of this Act, to address the critical depend19 ence of the United States on energy and the need 

20 to reduce emissions. 

21 (2) FOCUS AREAS.—The center or consortium 

22 shall conduct a program of research, development, 

23 demonstration, and commercial application on inte24 grating the following 6 focus areas: 
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1 (A) Efficiency and reliability of gas tur2 bines for power generation. 

3 (B) Reduction in emissions from power 

4 generation. 

5 (C) Promotion of energy conservation 

6 issues. 

7 (D) Effectively using alternative fuels and 

8 renewable energy. 

9 (E) Development of advanced materials 

10 technology for oil and gas exploration and use 

11 in harsh environments. 

12 (F) Education on energy and power gen13 eration issues. 

14 SEC. 953. METHANE HYDRATE RESEARCH. 

15 (a) IN GENERAL.—The Methane Hydrate Research 

16 and Development Act of 2000 (30 U.S.C. 1902 note; Pub17 lic Law 106–193) is amended to read as follows: 

18 ‘‘SECTION 1. SHORT TITLE. 

19 ‘‘This Act may be cited as the ‘Methane Hydrate Re20 search and Development Act of 2000’. 

21 ‘‘SEC. 2. FINDINGS. 

22 ‘‘Congress finds that— 

23 ‘‘(1) in order to promote energy independence 

24 and meet the increasing demand for energy, the 

25 United States will require a diversified portfolio of 
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1 substantially increased quantities of electricity, nat2 ural gas, and transportation fuels; 

3 ‘‘(2) according to the report submitted to Con4 gress by the National Research Council entitled 

5 ‘Charting the Future of Methane Hydrate Research 

6 in the United States’, the total United States re7 sources of gas hydrates have been estimated to be on 

8 the order of 200,000 trillion cubic feet; 

9 ‘‘(3) according to the report of the National 

10 Commission on Energy Policy entitled ‘Ending the 

11 Energy Stalemate—A Bipartisan Strategy to Meet 

12 America’s Energy Challenge’, and dated December 

13 2004, the United States may be endowed with over 

14 1/4 of the methane hydrate deposits in the world; 

15 ‘‘(4) according to the Energy Information Ad16 ministration, a shortfall in natural gas supply from 

17 conventional and unconventional sources is expected 

18 to occur in or about 2020; and 

19 ‘‘(5) the National Academy of Science states 

20 that methane hydrate may have the potential to al21 leviate the projected shortfall in the natural gas sup22 ply. 

23 ‘‘SEC. 3. DEFINITIONS. 

24 ‘‘In this Act: 
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1 ‘‘(1) CONTRACT.—The term ‘contract’ means a 

2 procurement contract within the meaning of section 

3 6303 of title 31, United States Code. 

4 ‘‘(2) COOPERATIVE AGREEMENT.—The term 

5 ‘cooperative agreement’ means a cooperative agree6 ment within the meaning of section 6305 of title 31, 

7 United States Code. 

8 ‘‘(3) DIRECTOR.—The term ‘Director’ means 

9 the Director of the National Science Foundation. 

10 ‘‘(4) GRANT.—The term ‘grant’ means a grant 

11 awarded under a grant agreement (within the mean12 ing of section 6304 of title 31, United States Code). 

13 ‘‘(5) INDUSTRIAL ENTERPRISE.—The term ‘in14 dustrial enterprise’ means a private, nongovern15 mental enterprise that has an expertise or capability 

16 that relates to methane hydrate research and devel17 opment. 

18 ‘‘(6) INSTITUTION OF HIGHER EDUCATION.— 

19 The term ‘institution of higher education’ means an 

20 institution of higher education (as defined in section 

21 102 of the Higher Education Act of 1965 (20 

22 U.S.C. 1002)). 

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

24 the Secretary of Energy, acting through the Assist25 ant Secretary for Fossil Energy. 
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1 ‘‘(8) SECRETARY OF COMMERCE.—The term 

2 ‘Secretary of Commerce’ means the Secretary of 

3 Commerce, acting through the Administrator of the 

4 National Oceanic and Atmospheric Administration. 

5 ‘‘(9) SECRETARY OF DEFENSE.—The term 

6 ‘Secretary of Defense’ means the Secretary of De7 fense, acting through the Secretary of the Navy. 

8 ‘‘(10) SECRETARY OF THE INTERIOR.—The 

9 term ‘Secretary of the Interior’ means the Secretary 

10 of the Interior, acting through the Director of the 

11 United States Geological Survey, the Director of the 

12 Bureau of Land Management, and the Director of 

13 the Minerals Management Service. 

14 ‘‘SEC. 4. METHANE HYDRATE RESEARCH AND DEVELOP15 MENT PROGRAM. 

16 ‘‘(a) IN GENERAL.— 

17 ‘‘(1) COMMENCEMENT OF PROGRAM.—Not later 

18 than 90 days after the date of enactment of the En19 ergy Research, Development, Demonstration, and 

20 Commercial Application Act of 2005, the Secretary, 

21 in consultation with the Secretary of Commerce, the 

22 Secretary of Defense, the Secretary of the Interior, 

23 and the Director, shall commence a program of 

24 methane hydrate research and development in ac25 cordance with this section. 
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1 ‘‘(2) DESIGNATIONS.—The Secretary, the Sec2 retary of Commerce, the Secretary of Defense, the 

3 Secretary of the Interior, and the Director shall des4 ignate individuals to carry out this section. 

5 ‘‘(3) COORDINATION.—The individual des6 ignated by the Secretary shall coordinate all activi7 ties within the Department of Energy relating to 

8 methane hydrate research and development. 

9 ‘‘(4) MEETINGS.—The individuals designated 

10 under paragraph (2) shall meet not later than 180 

11 days after the date of enactment of the Energy Re12 search, Development, Demonstration, and Commer13 cial Application Act of 2005 and not less frequently 

14 than every 180 days thereafter to— 

15 ‘‘(A) review the progress of the program 

16 under paragraph (1); and 

17 ‘‘(B) coordinate interagency research and 

18 partnership efforts in carrying out the program. 

19 ‘‘(b) GRANTS, CONTRACTS, COOPERATIVE AGREE20 MENTS, INTERAGENCY FUNDS TRANSFER AGREEMENTS, 

21 AND FIELD WORK PROPOSALS.— 

22 ‘‘(1) ASSISTANCE AND COORDINATION.—In car23 rying out the program of methane hydrate research 

24 and development authorized by this section, the Sec25 retary may award grants to, or enter into contracts 
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1 or cooperative agreements with, institutions of high2 er education, oceanographic institutions, and indus3 trial enterprises to— 

4 ‘‘(A) conduct basic and applied research to 

5 identify, explore, assess, and develop methane 

6 hydrate as a commercially viable source of en7 ergy; 

8 ‘‘(B) identify methane hydrate resources 

9 through remote sensing; 

10 ‘‘(C) acquire and reprocess seismic data 

11 suitable for characterizing methane hydrate ac12 cumulations; 

13 ‘‘(D) assist in developing technologies re14 quired for efficient and environmentally sound 

15 development of methane hydrate resources; 

16 ‘‘(E) promote education and training in 

17 methane hydrate resource research and re18 source development through fellowships or other 

19 means for graduate education and training; 

20 ‘‘(F) conduct basic and applied research to 

21 assess and mitigate the environmental impact of 

22 hydrate degassing (including both natural 

23 degassing and degassing associated with com24 mercial development); 
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1 ‘‘(G) develop technologies to reduce the 

2 risks of drilling through methane hydrates; and 

3 ‘‘(H) conduct exploratory drilling, well 

4 testing, and production testing operations on 

5 permafrost and non-permafrost gas hydrates in 

6 support of the activities authorized by this 

7 paragraph, including drilling of 1 or more full8 scale production test wells. 

9 ‘‘(2) COMPETITIVE PEER REVIEW.—Funds 

10 made available under paragraph (1) shall be made 

11 available based on a competitive process using exter12 nal scientific peer review of proposed research. 

13 ‘‘(c) METHANE HYDRATES ADVISORY PANEL.— 

14 ‘‘(1) IN GENERAL.—The Secretary shall estab15 lish an advisory panel (including the hiring of appro16 priate staff) consisting of representatives of indus17 trial enterprises, institutions of higher education, 

18 oceanographic institutions, State agencies, and envi19 ronmental organizations with knowledge and exper20 tise in the natural gas hydrates field, to— 

21 ‘‘(A) assist in developing recommendations 

22 and broad programmatic priorities for the 

23 methane hydrate research and development pro24 gram carried out under subsection (a)(1); 
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1 ‘‘(B) provide scientific oversight for the 

2 methane hydrates program, including assessing 

3 progress toward program goals, evaluating pro4 gram balance, and providing recommendations 

5 to enhance the quality of the program over 

6 time; and 

7 ‘‘(C) not later than 2 years after the date 

8 of enactment of the Energy Research, Develop9 ment, Demonstration, and Commercial Applica10 tion Act of 2005, and at such later dates as the 

11 panel considers advisable, submit to Congress— 

12 ‘‘(i) an assessment of the methane hy13 drate research program; and 

14 ‘‘(ii) an assessment of the 5-year re15 search plan of the Department of Energy. 

16 ‘‘(2) CONFLICTS OF INTEREST.—In appointing 

17 each member of the advisory panel established under 

18 paragraph (1), the Secretary shall ensure, to the 

19 maximum extent practicable, that the appointment 

20 of the member does not pose a conflict of interest 

21 with respect to the duties of the member under this 

22 Act. 

23 ‘‘(3) MEETINGS.—The advisory panel shall— 
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1 ‘‘(A) hold the initial meeting of the advi2 sory panel not later than 180 days after the 

3 date of establishment of the advisory panel; and 

4 ‘‘(B) meet biennially thereafter. 

5 ‘‘(4) COORDINATION.—The advisory panel shall 

6 coordinate activities of the advisory panel with pro7 gram managers of the Department of Energy at ap8 propriate national laboratories 

9 ‘‘(d) CONSTRUCTION COSTS.—None of the funds 

10 made available to carry out this section may be used for 

11 the construction of a new building or the acquisition, ex12 pansion, remodeling, or alteration of an existing building 

13 (including site grading and improvement and architect 

14 fees). 

15 ‘‘(e) RESPONSIBILITIES OF THE SECRETARY.—In 

16 carrying out subsection (b)(1), the Secretary shall— 

17 ‘‘(1) facilitate and develop partnerships among 

18 government, industrial enterprises, and institutions 

19 of higher education to research, identify, assess, and 

20 explore methane hydrate resources; 

21 ‘‘(2) undertake programs to develop basic infor22 mation necessary for promoting long-term interest in 

23 methane hydrate resources as an energy source; 
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1 ‘‘(3) ensure that the data and information de2 veloped through the program are accessible and 

3 widely disseminated as needed and appropriate; 

4 ‘‘(4) promote cooperation among agencies that 

5 are developing technologies that may hold promise 

6 for methane hydrate resource development; 

7 ‘‘(5) report annually to Congress on the results 

8 of actions taken to carry out this Act; and 

9 ‘‘(6) ensure, to the maximum extent prac10 ticable, greater participation by the Department of 

11 Energy in international cooperative efforts. 

12 ‘‘SEC. 5. NATIONAL RESEARCH COUNCIL STUDY. 

13 ‘‘(a) AGREEMENT FOR STUDY.—The Secretary shall 

14 offer to enter into an agreement with the National Re15 search Council under which the National Research Council 

16 shall— 

17 ‘‘(1) conduct a study of the progress made 

18 under the methane hydrate research and develop19 ment program implemented under this Act; and 

20 ‘‘(2) make recommendations for future methane 

21 hydrate research and development needs. 

22 ‘‘(b) REPORT.—Not later than September 30, 2009, 

23 the Secretary shall submit to Congress a report containing 

24 the findings and recommendations of the National Re25 search Council under this section. 
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1 ‘‘SEC. 6. REPORTS AND STUDIES FOR CONGRESS. 

2 ‘‘The Secretary shall provide to the Committee on 

3 Science of the House of Representatives and the Com4 mittee on Energy and Natural Resources of the Senate 

5 copies of any report or study that the Department of En6 ergy prepares at the direction of any committee of Con7 gress relating to the methane hydrate research and devel8 opment program implemented under this Act. 

9 ‘‘SEC. 7. AUTHORIZATION OF APPROPRIATIONS. 

10 ‘‘There are authorized to be appropriated to the Sec11 retary to carry out this Act, to remain available until ex12 pended— 

13 ‘‘(1) $15,000,000 for fiscal year 2006; 

14 ‘‘(2) $20,000,000 for fiscal year 2007; 

15 ‘‘(3) $30,000,000 for fiscal year 2008; 

16 ‘‘(4) $50,000,000 for fiscal year 2009; and 

17 ‘‘(5) $50,000,000 for fiscal year 2010.’’. 

18 (b) RECLASSIFICATION.—The Law Revision Counsel 

19 shall reclassify the Methane Hydrate Research and Devel20 opment Act of 2000 (30 U.S.C. 1902 note; Public Law 

21 106–193) to a new chapter at the end of title 30, United 

22 States Code. 
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1 SEC. 954. RESEARCH AND DEVELOPMENT FOR COAL MIN2 ING TECHNOLOGIES. 

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

4 a program for research and development on coal mining 

5 technologies. 

6 (b) COOPERATION.—In carrying out the program, the 

7 Secretary shall cooperate with appropriate Federal agen8 cies, coal producers, trade associations, equipment manu9 facturers, institutions of higher education with mining en10 gineering departments, and other relevant entities. 

11 (c) PROGRAM.—The research and development activi12 ties carried out under this section shall— 

13 (1) be guided by the mining research and devel14 opment priorities identified by the Mining Industry 

15 of the Future Program and in the recommendations 

16 from relevant reports of the National Academy of 

17 Sciences on mining technologies; 

18 (2) include activities exploring minimization of 

19 contaminants in mined coal that contribute to envi20 ronmental concerns including development and dem21 onstration of electromagnetic wave imaging ahead of 

22 mining operations; 

23 (3) develop and demonstrate coal bed electro24 magnetic wave imaging, spectroscopic reservoir anal25 ysis technology, and techniques for horizontal drill26 ing in order to— 
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1 (A) identify areas of high coal gas content; 

2 (B) increase methane recovery efficiency; 

3 (C) prevent spoilage of domestic coal re4 serves; and 

5 (D) minimize water disposal associated 

6 with methane extraction; and 

7 (4) expand mining research capabilities at insti8 tutions of higher education. 

9 SEC. 955. COAL AND RELATED TECHNOLOGIES PROGRAM. 

10 (a) IN GENERAL.—In addition to the programs au11 thorized under title II, the Secretary shall conduct a pro12 gram of technology research, development, and demonstra13 tion and commercial application for coal and power sys14 tems, including programs to facilitate production and gen15 eration of coal-based power through— 

16 (1) innovations for existing plants; 

17 (2) integrated gasification combined cycle; 

18 (3) advanced combustion systems; 

19 (4) turbines for synthesis gas derived from coal; 

20 (5) carbon capture and sequestration research 

21 and development; 

22 (6) coal-derived transportation fuels and chemi23 cals; 

24 (7) liquid fuels derived from low rank coal 

25 water; 
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1 (8) removal of elemental mercury; 

2 (9) solid fuels and feedstocks; and 

3 (10) advanced coal-related research. 

4 (b) COST AND PERFORMANCE GOALS.— 

5 (1) IN GENERAL.—In carrying out programs 

6 authorized by this section, the Secretary shall iden7 tify cost and performance goals for coal-based tech8 nologies that would permit the continued cost-com9 petitive use of coal for electricity generation, as 

10 chemical feedstocks, and as transportation fuel in 

11 2007, 2010, 2012, and 2015. 

12 (2) ADMINISTRATION.—In establishing the cost 

13 and performance goals, the Secretary shall— 

14 (A) consider activities and studies under15 taken as of the date of enactment of this Act 

16 by industry in cooperation with the Department 

17 in support of the identification of the goals; 

18 (B) consult with interested entities, includ19 ing— 

20 (i) coal producers; 

21 (ii) industries using coal; 

22 (iii) organizations that promote coal 

23 and advanced coal technologies; 

24 (iv) environmental organizations; and 
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1 (v) organizations representing work2 ers; 

3 (C) not later than 120 days after the date 

4 of enactment of this Act, publish in the Federal 

5 Register proposed draft cost and performance 

6 goals for public comments; and 

7 (D) not later than 180 days after the date 

8 of enactment of this Act and every 4 years 

9 thereafter, submit to Congress a report describ10 ing the final cost and performance goals for the 

11 technologies that includes— 

12 (i) a list of technical milestones; and 

13 (ii) an explanation of how programs 

14 authorized in this section will not duplicate 

15 the activities authorized under the Clean 

16 Coal Power Initiative authorized under 

17 title II. 

18 (c) POWDER RIVER BASIN AND FORT UNION LIG19 NITE COAL MERCURY REMOVAL.— 

20 (1) IN GENERAL.—In addition to the programs 

21 authorized by subsection (a), the Secretary may es22 tablish a program to test and develop technologies to 

23 control and remove mercury emissions from subbitu24 minous coal mined in the Powder River Basin, and 
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1 Fort Union lignite coals, that are used for the gen2 eration of electricity. 

3 (2) EFFICACY OF MERCURY REMOVAL TECH4 NOLOGY.—In carrying out the program under para5 graph (1), the Secretary shall examine the efficacy 

6 of mercury removal technologies on coals described 

7 in that paragraph that are blended with other types 

8 of coal. 

9 SEC. 956. CARBON DIOXIDE CAPTURE RESEARCH AND DE10 VELOPMENT. 

11 (a) PROGRAM.—The Secretary shall establish a pro12 gram of research and development aimed at developing 

13 carbon dioxide capture technologies for pulverized coal 

14 combustion units. 

15 (b) FOCUS.—The program under subsection (a) shall 

16 focus on— 

17 (1) developing add-on carbon dioxide capture 

18 technologies, such as adsorption and absorption 

19 techniques and chemical processes, to remove carbon 

20 dioxide from the flue gas, producing concentrated 

21 streams of carbon dioxide potentially amenable to se22 questration; 

23 (2) combustion technologies that would directly 

24 produce concentrated streams of carbon dioxide po25 tentially amenable to sequestration; and 
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1 (3) minimizing the efficiency losses associated 

2 with carbon capture and sequestration. 

3 (b) CARBON SEQUESTRATION.—In conjunction with 

4 the program under subsection (a), the Secretary shall con5 tinue pursuit of a carbon sequestration program involving 

6 public-private partnerships. 

7 SEC. 957. COMPLEX WELL TECHNOLOGY TESTING FACIL8 ITY. 

9 The Secretary, in coordination with industry leaders 

10 in extended research drilling technology, shall establish a 

11 Complex Well Technology Testing Facility at the Rocky 

12 Mountain Oilfield Testing Center to increase the range of 

13 extended drilling technologies. 

14 Subtitle F—Science 

15 SEC. 961. SCIENCE. 

16 (a) IN GENERAL.—There are authorized to be appro17 priated to the Secretary to carry out research, develop18 ment, demonstration, and commercial application activi19 ties of the Office of Science, including activities authorized 

20 under this subtitle (including the amounts authorized 

21 under the amendment made by section 967(b) and includ22 ing basic energy sciences, advanced scientific and com23 puting research, biological and environmental research, fu24 sion energy sciences, high energy physics, nuclear physics, 

25 research analysis, and infrastructure support)— 
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1 (1) $4,153,000,000 for fiscal year 2006; 

2 (2) $4,586,000,000 for fiscal year 2007; and 

3 (3) $5,000,000,000 for fiscal year 2008. 

4 (b) ALLOCATIONS.—From amounts authorized under 

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

6 (1) For activities under the Fusion Energy 

7 Sciences program (including activities under section 

8 962)— 

9 (A) $349,000,000 for fiscal year 2006; 

10 (B) $362,000,000 for fiscal year 2007; and 

11 (C) $377,000,000 for fiscal year 2008. 

12 (2) For activities under the catalysis research 

13 program established under section 964— 

14 (A) $35,000,000 for fiscal year 2006; 

15 (B) $36,500,000 for fiscal year 2007; and 

16 (C) $38,200,000 for fiscal year 2008. 

17 (3) For activities under the Genomes to Life 

18 Program established under section 968— 

19 (A) $170,000,000 for fiscal year 2006; 

20 (B) $325,000,000 for fiscal year 2007; and 

21 (C) $415,000,000 for fiscal year 2008. 

22 (4) For construction and ancillary equipment 

23 for user facilities under section 968(d) for the 

24 Genomes to Life Program, of the amounts author25 ized under paragraph (3)— 
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1 (A) $70,000,000 for fiscal year 2006; 

2 (B) $175,000,000 for fiscal year 2007; and 

3 (C) $215,000,000 for fiscal year 2008. 

4 (5) For activities under the Energy-Water Sup5 ply Technologies Program established under section 

6 970, $30,000,000 for each of fiscal years 2006 

7 through 2008. 

8 (c) FUSION ENERGY SCIENCES PROGRAM.—In addi9 tion to the funds authorized under subsection (b)(1), there 

10 are authorized to be appropriated for construction costs 

11 associated with the Fusion Energy Sciences Program 

12 under section 962— 

13 (1) $55,000,000 for fiscal year 2006; 

14 (2) $95,000,000 for fiscal year 2007; and 

15 (3) $115,000,000 for fiscal year 2008. 

16 SEC. 962. FUSION ENERGY SCIENCES PROGRAM. 

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

18 of the United States to conduct research, development, 

19 demonstration, and commercial applications to provide for 

20 the scientific, engineering, and commercial infrastructure 

21 necessary to ensure that the United States is competitive 

22 with other countries in providing fusion energy for its own 

23 needs and the needs of other countries, including by dem24 onstrating electric power or hydrogen production for the 
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1 United States energy grid using fusion energy at the ear2 liest date. 

3 (b) PLANNING.— 

4 (1) IN GENERAL.—Not later than 180 days 

5 after the date of enactment of this Act, the Sec6 retary shall submit to Congress a plan (with pro7 posed cost estimates, budgets, and lists of potential 

8 international partners) for the implementation of the 

9 policy described in subsection (a) in a manner that 

10 ensures that— 

11 (A) existing fusion research facilities are 

12 more fully used; 

13 (B) fusion science, technology, theory, ad14 vanced computation, modeling, and simulation 

15 are strengthened; 

16 (C) new magnetic and inertial fusion re17 search and development facilities are selected 

18 based on scientific innovation and cost effective19 ness, and the potential of the facilities to ad20 vance the goal of practical fusion energy at the 

21 earliest date practicable; 

22 (D) facilities that are selected are funded 

23 at a cost-effective rate; 

24 (E) communication of scientific results and 

25 methods between the fusion energy science com-
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1 munity and the broader scientific and tech2 nology communities is improved; 

3 (F) inertial confinement fusion facilities 

4 are used to the extent practicable for the pur5 pose of inertial fusion energy research and de6 velopment; 

7 (G) attractive alternative inertial and mag8 netic fusion energy approaches are more fully 

9 explored; and 

10 (H) to the extent practicable, the rec11 ommendations of the Fusion Energy Sciences 

12 Advisory Committee in the report on workforce 

13 planning, dated March 2004, are carried out, 

14 including periodic reassessment of program 

15 needs. 

16 (2) COSTS AND SCHEDULES.—The plan shall 

17 also address the status of and, to the extent prac18 ticable, costs and schedules for— 

19 (A) the design and implementation of 

20 international or national facilities for the test21 ing of fusion materials; and 

22 (B) the design and implementation of 

23 international or national facilities for the test24 ing and development of key fusion technologies. 

25 (c) UNITED STATES PARTICIPATION IN ITER.— 
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1 (1) DEFINITIONS.—In this subsection: 

2 (A) CONSTRUCTION.— 

3 (i) IN GENERAL.—The term ‘‘con4 struction’’ means— 

5 (I) the physical construction of 

6 the ITER facility; and 

7 (II) the physical construction, 

8 purchase, or manufacture of equip9 ment or components that are specifi10 cally designed for the ITER facility. 

11 (ii) EXCLUSIONS.—The term ‘‘con12 struction’’ does not include the design of 

13 the facility, equipment, or components. 

14 (B) ITER.—The term ‘‘ITER’’ means the 

15 international burning plasma fusion research 

16 project in which the President announced 

17 United States participation on January 30, 

18 2003, or any similar international project. 

19 (2) PARTICIPATION.—The United States may 

20 participate in the ITER only in accordance with this 

21 subsection. 

22 (3) AGREEMENT.— 

23 (A) IN GENERAL.—The Secretary may ne24 gotiate an agreement for United States partici25 pation in the ITER. 
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1 (B) CONTENTS.—Any agreement for 

2 United States participation in the ITER shall, 

3 at a minimum— 

4 (i) clearly define the United States fi5 nancial contribution to construction and 

6 operating costs, as well as any other costs 

7 associated with a project; 

8 (ii) ensure that the share of high-tech9 nology components of the ITER manufac10 tured in the United States is at least pro11 portionate to the United States financial 

12 contribution to the ITER; 

13 (iii) ensure that the United States will 

14 not be financially responsible for cost over15 runs in components manufactured in other 

16 ITER participating countries; 

17 (iv) guarantee the United States full 

18 access to all data generated by the ITER; 

19 (v) enable United States researchers 

20 to propose and carry out an equitable 

21 share of the experiments at the ITER; 

22 (vi) provide the United States with a 

23 role in all collective decisionmaking related 

24 to the ITER; and 
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1 (vii) describe the process for dis2 continuing or decommissioning the ITER 

3 and any United States role in that process. 

4 (4) PLAN.— 

5 (A) DEVELOPMENT.—The Secretary, in 

6 consultation with the Fusion Energy Sciences 

7 Advisory Committee, shall develop a plan for 

8 the participation of United States scientists in 

9 the ITER that shall include— 

10 (i) the United States research agenda 

11 for the ITER; 

12 (ii) methods to evaluate whether the 

13 ITER is promoting progress toward mak14 ing fusion a reliable and affordable source 

15 of power; and 

16 (iii) a description of how work at the 

17 ITER will relate to other elements of the 

18 United States fusion program. 

19 (B) REVIEW.—The Secretary shall request 

20 a review of the plan by the National Academy 

21 of Sciences. 

22 (5) LIMITATION.—No Federal funds shall be 

23 expended for the construction of the ITER until the 

24 Secretary has submitted to Congress— 
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1 (A) the agreement negotiated in accord2 ance with paragraph (3) and 120 days have 

3 elapsed since that submission; 

4 (B) a report describing the management 

5 structure of the ITER and providing a fixed 

6 dollar estimate of the cost of United States par7 ticipation in the construction of the ITER, and 

8 120 days have elapsed since that submission; 

9 (C) a report describing how United States 

10 participation in the ITER will be funded with11 out reducing funding for other programs in the 

12 Office of Science (including other fusion pro13 grams), and 60 days have elapsed since that 

14 submission; and 

15 (D) the plan required by paragraph (4) 

16 (but not the National Academy of Sciences re17 view of that plan), and 60 days have elapsed 

18 since that submission. 

19 (6) ALTERNATIVE TO ITER.— 

20 (A) IN GENERAL.—If at any time during 

21 the negotiations on the ITER, the Secretary de22 termines that construction and operation of the 

23 ITER is unlikely or infeasible, the Secretary 

24 shall submit to Congress, along with the budget 

25 request of the President submitted to Congress 
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1 for the following fiscal year, a plan for imple2 menting a domestic burning plasma experiment 

3 such as the Fusion Ignition Research Experi4 ment, including costs and schedules for the 

5 plan. 

6 (B) ADMINISTRATION.—The Secretary 

7 shall— 

8 (i) refine the plan in full consultation 

9 with the Fusion Energy Sciences Advisory 

10 Committee; and 

11 (ii) transmit the plan to the National 

12 Academy of Sciences for review. 

13 SEC. 963. SUPPORT FOR SCIENCE AND ENERGY FACILITIES 

14 AND INFRASTRUCTURE. 

15 (a) FACILITY AND INFRASTRUCTURE POLICY.— 

16 (1) IN GENERAL.—The Secretary shall develop 

17 and implement a strategy for facilities and infra18 structure supported primarily from the Office of 

19 Science, the Office of Energy Efficiency and Renew20 able Energy, the Office of Fossil Energy, or the Of21 fice of Nuclear Energy, Science and Technology Pro22 grams at all National Laboratories and single-pur23 pose research facilities. 

24 (2) STRATEGY.—The strategy shall provide 

25 cost-effective means for— 
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1 (A) maintaining existing facilities and in2 frastructure; 

3 (B) closing unneeded facilities; 

4 (C) making facility modifications; and 

5 (D) building new facilities. 

6 (b) REPORT.— 

7 (1) IN GENERAL.—The Secretary shall prepare 

8 and submit, along with the budget request of the 

9 President submitted to Congress for fiscal year 

10 2007, a report describing the strategy developed 

11 under subsection (a). 

12 (2) CONTENTS.—For each National Laboratory 

13 and single-purpose research facility that is primarily 

14 used for science and energy research, the report 

15 shall contain— 

16 (A) the current priority list of proposed fa17 cilities and infrastructure projects, including 

18 cost and schedule requirements; 

19 (B) a current 10-year plan that dem20 onstrates the reconfiguration of its facilities and 

21 infrastructure to meet its missions and to ad22 dress its long-term operational costs and return 

23 on investment; 

24 (C) the total current budget for all facili25 ties and infrastructure funding; and 
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1 (D) the current status of each facility and 

2 infrastructure project compared to the original 

3 baseline cost, schedule, and scope. 

4 SEC. 964. CATALYSIS RESEARCH PROGRAM. 

5 (a) ESTABLISHMENT.—The Secretary, acting 

6 through the Office of Science, shall support a program of 

7 research and development in catalysis science consistent 

8 with the statutory authorities of the Department related 

9 to research and development. 

10 (b) COMPONENTS.—The program shall include ef11 forts to— 

12 (1) enable catalyst design using combinations of 

13 experimental and mechanistic methodologies coupled 

14 with computational modeling of catalytic reactions at 

15 the molecular level; 

16 (2) develop techniques for high throughput syn17 thesis, assay, and characterization at nanometer and 

18 subnanometer scales in situ under actual operating 

19 conditions; 

20 (3) synthesize catalysts with specific site archi21 tectures; 

22 (4) conduct research on the use of precious 

23 metals for catalysis; and 

24 (5) translate molecular understanding to the 

25 design of catalytic compounds. 
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1 (c) DUTIES OF THE OFFICE OF SCIENCE.—In car2 rying out the program, the Director of the Office of 

3 Science shall— 

4 (1) support both individual investigators and 

5 multidisciplinary teams of investigators to pioneer 

6 new approaches in catalytic design; 

7 (2) develop, plan, construct, acquire, share, or 

8 operate special equipment or facilities for the use of 

9 investigators in collaboration with national user fa10 cilities, such as nanoscience and engineering centers; 

11 (3) support technology transfer activities to 

12 benefit industry and other users of catalysis science 

13 and engineering; and 

14 (4) coordinate research and development activi15 ties with industry and other Federal agencies. 

16 (d) TRIENNIAL ASSESSMENT.—Not later than 3 

17 years after the date of enactment of this Act and every 

18 3 years thereafter, the National Academy of Sciences 

19 shall— 

20 (1) review the catalysis program to measure— 

21 (A) gains made in the fundamental science 

22 of catalysis; and 

23 (B) progress towards developing new fuels 

24 for energy production and material fabrication 

25 processes; and 
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1 (2) submit to Congress a report describing the 

2 results of the review. 

3 SEC. 965. HYDROGEN. 

4 (a) IN GENERAL.—The Secretary shall conduct a 

5 program of fundamental research and development in sup6 port of programs authorized under title VIII. 

7 (b) METHODS.—The program shall include support 

8 for methods of generating hydrogen without the use of 

9 natural gas. 

10 SEC. 966. SOLID STATE LIGHTING. 

11 The Secretary shall conduct a program of funda12 mental research on advance solid state lighting in support 

13 of the Next Generation Lighting Initiative carried out 

14 under section 912. 

15 SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY 

16 MISSIONS. 

17 (a) PROGRAM.— 

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

19 an advanced scientific computing research and devel20 opment program that includes activities related to 

21 applied mathematics and activities authorized by the 

22 Department of Energy High-End Computing Revi23 talization Act of 2004 (15 U.S.C. 5541 et seq.). 

24 (2) GOAL.—The Secretary shall carry out the 

25 program with the goal of supporting departmental 
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1 missions, and providing the high-performance com2 putational, networking, advanced visualization tech3 nologies, and workforce resources, that are required 

4 for world leadership in science. 

5 (b) HIGH-PERFORMANCE COMPUTING.—Section 203 

6 of the High-Performance Computing Act of 1991 (15 

7 U.S.C. 5523) is amended to read as follows: 

8 ‘‘SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES. 

9 ‘‘(a) GENERAL RESPONSIBILITIES.—As part of the 

10 Program described in title I, the Secretary of Energy 

11 shall— 

12 ‘‘(1) conduct and support basic and applied re13 search in high-performance computing and net14 working to support fundamental research in science 

15 and engineering disciplines related to energy applica16 tions; and 

17 ‘‘(2) provide computing and networking infra18 structure support, including— 

19 ‘‘(A) the provision of high-performance 

20 computing systems that are among the most 

21 advanced in the world in terms of performance 

22 in solving scientific and engineering problems; 

23 and 

24 ‘‘(B) support for advanced software and 

25 applications development for science and engi-
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1 neering disciplines related to energy applica2 tions. 

3 ‘‘(b) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the Secretary of En5 ergy such sums as are necessary to carry out this sec6 tion.’’. 

7 SEC. 968. GENOMES TO LIFE PROGRAM. 

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

9 a program of research, development, demonstration, and 

10 commercial application, to be known as the ‘‘Genomes to 

11 Life Program’’, in microbial and plant systems biology, 

12 protein science, and computational biology consistent with 

13 the statutory authorities of the Department. 

14 (b) PLANNING.— 

15 (1) IN GENERAL.—The Secretary shall prepare 

16 a program plan that describes how knowledge and 

17 capabilities would be developed by the program and 

18 applied to missions of the Department relating to 

19 energy security, environmental cleanup, and national 

20 security. 

21 (2) CONSULTATION.—The Secretary shall pre22 pare the program plan in consultation with the 

23 heads of other Federal agencies that carry out rel24 evant technology programs. 
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1 (3) LONG-TERM GOALS.—In preparing the pro2 gram plan, the Secretary shall focus on applying 

3 science and technology to achieve the long-term 

4 goals of the program, including— 

5 (A) contributing to the independence of the 

6 United States from foreign energy sources, in7 cluding production of hydrogen; 

8 (B) converting carbon dioxide to organic 

9 carbon; 

10 (C) advancing environmental cleanup; 

11 (D) providing the science and technology 

12 for new biotechnology industries; and 

13 (E) improving national security and com14 bating bioterrorism. 

15 (4) SHORT-TERM GOALS.—In preparing the 

16 program plan, the Secretary shall— 

17 (A) establish specific short-term goals; and 

18 (B) update the goals with the annual 

19 budget submission of the Secretary. 

20 (c) ADMINISTRATION.—In carrying out the program, 

21 the Secretary shall— 

22 (1) support individual investigators and multi23 disciplinary teams of investigators; 

24 (2) subject to subsection (d), develop, plan, con25 struct, acquire, or operate special equipment or fa-
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1 cilities for the use of investigators conducting re2 search, development, demonstration, or commercial 

3 application in systems biology and proteomics; 

4 (3) support technology transfer activities to 

5 benefit industry and other users of systems biology 

6 and proteomics; and 

7 (4) coordinate activities by the Department 

8 with industry and other Federal agencies. 

9 (d) GENOMES TO LIFE USER FACILITIES AND AN10 CILLARY EQUIPMENT.— 

11 (1) IN GENERAL.—Subject to the availability of 

12 funds to carry out this subsection, the amounts 

13 made available under section 961(b)(4) shall be 

14 available for— 

15 (A) projects to develop, plan, construct, ac16 quire, or operate special equipment, or instru17 mentation; or 

18 (B) facilities at National Laboratories for 

19 investigators conducting research, development, 

20 demonstration, and commercial application in 

21 systems biology and proteomics and associated 

22 biological disciplines. 

23 (2) PROJECTS.—Projects under paragraph 

24 (1)(A) may include— 
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1 (A) the identification and characterization 

2 of multiprotein complexes; 

3 (B) characterization of gene regulatory 

4 networks; 

5 (C) characterization of the functional rep6 ertoire of complex microbial communities in 

7 their natural environments at the molecular 

8 level; and 

9 (D) development of computational methods 

10 and capabilities to advance understanding of 

11 complex biological systems and predict their be12 havior. 

13 (3) FACILITIES.—Facilities under paragraph 

14 (1)(B) may include facilities, equipment, or instru15 mentation for— 

16 (A) the production and characterization of 

17 proteins; 

18 (B) whole proteome analysis; 

19 (C) characterization and imaging of molec20 ular machines; and 

21 (D) analysis and modeling of cellular sys22 tems. 

23 (4) FACILITIES LOCATION AND MISSION.—The 

24 number, location, and mission of facilities under 

25 paragraph (1)(B) shall be determined in a plan pro-
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1 vided by the Secretary to Congress before the con2 struction of any such facility. 

3 (5) COLLABORATION.— 

4 (A) IN GENERAL.—In carrying out this 

5 subsection, the Secretary shall encourage col6 laborations among institutions of higher edu7 cation, National Laboratories, and industry at 

8 facilities. 

9 (B) TECHNOLOGY TRANSFER.—All facili10 ties under this subsection shall promote tech11 nology transfer to other institutions. 

12 SEC. 969. FISSION AND FUSION ENERGY MATERIALS RE13 SEARCH PROGRAM. 

14 (a) IN GENERAL.—Along with the budget request of 

15 the President submitted to Congress for fiscal year 2007, 

16 the Secretary shall establish a research and development 

17 program on material science issues presented by advanced 

18 fission reactors and the fusion energy program of the De19 partment. 

20 (b) ADMINISTRATION.—In carrying out the program, 

21 the Secretary shall develop— 

22 (1) a catalog of material properties required for 

23 applications described in subsection (a); 

24 (2) theoretical models for materials possessing 

25 the required properties; 
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1 (3) benchmark models against existing data; 

2 and 

3 (4) a roadmap to guide further research and 

4 development in the area covered by the program. 

5 SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PRO6 GRAM. 

7 (a) DEFINITIONS.—In this section: 

8 (1) FOUNDATION.—The term ‘‘Foundation’’ 

9 means the American Water Works Association Re10 search Foundation. 

11 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

12 has the meaning given the term in section 4 of the 

13 Indian Self-Determination and Education Assistance 

14 Act (25 U.S.C. 450b). 

15 (3) PROGRAM.—The term ‘‘Program’’ means 

16 the Energy-Water Supply Technologies Program es17 tablished by subsection (b). 

18 (b) ESTABLISHMENT.—There is established, within 

19 the Office of Biological and Environmental Research of 

20 the Office of Science, a program, to be known as the ‘‘En21 ergy-Water Supply Technologies Program’’, to study— 

22 (1) energy-related issues associated with water 

23 resources and municipal waterworks; and 

24 (2) supply issues related to energy production. 
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1 (c) PROGRAM AREAS.—In carrying out the Program, 

2 the Secretary shall conduct research and development, in3 cluding research and development relating to— 

4 (1) the arsenic removal program under sub5 section (d); 

6 (2) the desalination research program under 

7 subsection (e); 

8 (3) the water and energy sustainability program 

9 under subsection (f); and 

10 (4) other energy-intensive water supply and 

11 treatment technologies and other technologies se12 lected by the Secretary. 

13 (d) ARSENIC REMOVAL PROGRAM.— 

14 (1) IN GENERAL.—As soon as practicable after 

15 the date of enactment of this Act, the Secretary 

16 shall enter into a contract with the Foundation to 

17 use the facilities, institutions, and relationships de18 scribed in the matter under the heading ‘‘BIOLOGI19 CAL AND ENVIRONMENTAL RESEARCH’’ of title III of 

20 Senate Report 107–220 to accompany the Consoli21 dated Appropriations Resolution, 2003 (Public Law 

22 108–7) to carry out a research program to develop 

23 and demonstrate innovative arsenic removal tech24 nologies. 
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1 (2) RESEARCH.—In carrying out the arsenic re2 moval program, the Foundation shall, to the max3 imum extent practicable, conduct research on means 

4 of— 

5 (A) reducing energy costs incurred in 

6 using arsenic removal technologies; 

7 (B) minimizing materials, operating, and 

8 maintenance costs incurred in using arsenic re9 moval technologies; and 

10 (C) minimizing any quantities of waste (es11 pecially hazardous waste) that result from use 

12 of arsenic removal technologies. 

13 (3) DEMONSTRATION PROJECTS.—The Founda14 tion shall carry out peer-reviewed research and dem15 onstration projects to develop and demonstrate 

16 water purification technologies. 

17 (4) ADMINISTRATION.—Under the arsenic re18 moval program— 

19 (A) demonstration projects shall be imple20 mented with municipal water system partners 

21 to demonstrate the applicability of innovative 

22 arsenic removal technologies in areas with dif23 ferent water chemistries representative of areas 

24 across the United States with arsenic levels 
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1 near or exceeding the guidelines of the Environ2 mental Protection Agency; and 

3 (B) not less than 40 percent of the funds 

4 of the Department used for demonstration 

5 projects under the arsenic removal program 

6 shall be expended on projects focused on the 

7 needs of and in partnership with rural commu8 nities or Indian tribes. 

9 (5) EVALUATIONS; TECHNOLOGY TRANSFER.— 

10 The Foundation shall develop evaluations of cost ef11 fectiveness of arsenic removal technologies used in 

12 the program and an education, training, and tech13 nology transfer component for the program. 

14 (6) COORDINATION.—The Secretary shall con15 sult with the Administrator of the Environmental 

16 Protection Agency to ensure that activities under the 

17 arsenic removal program are coordinated with ap18 propriate programs of the Environmental Protection 

19 Agency and other Federal agencies, State programs, 

20 and academia. 

21 (7) REPORTS.—Not later than 1 year after the 

22 date of commencement of the arsenic removal pro23 gram and annually thereafter, the Secretary shall 

24 submit to Congress a report on the results of the ar25 senic removal program. 
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1 (e) DESALINATION PROGRAM.— 

2 (1) IN GENERAL.—The Secretary, in coopera3 tion with the Commissioner of Reclamation, shall 

4 carry out a desalination research program in accord5 ance with the desalination technology progress plan 

6 developed under the matter under the heading 

7 ‘‘WATER AND RELATED RESOURCES’’ under the 

8 heading ‘‘BUREAU OF RECLAMATION’’ of title II of 

9 the Energy and Water Development Appropriations 

10 Act, 2002 (115 Stat. 498) and described in Senate 

11 Report 107–39 to accompany S. 1171 (107th Con12 gress). 

13 (2) ADMINISTRATION.—The desalination pro14 gram shall— 

15 (A) draw on the national laboratory part16 nership established with the Bureau of Rec17 lamation to develop the national Desalination 

18 and Water Purification Technology Roadmap 

19 for next-generation desalination technology re20 leased in January 2003; 

21 (B) focus on research relating to, and de22 velopment and demonstration of, technologies 

23 that are appropriate for use in desalinating 

24 brackish groundwater, wastewater, and other 
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1 saline water supplies and disposal of residual 

2 brine or salt; and 

3 (C) consider the use of renewable energy 

4 sources. 

5 (3) CONSTRUCTION PROJECTS.—Under the de6 salination program, funds made available for the 

7 program may be used for construction projects, in8 cluding completion of the National Desalination Re9 search Center for brackish groundwater and ongoing 

10 facility operational costs. 

11 (4) STEERING COMMITTEE.— 

12 (A) ESTABLISHMENT.—The Secretary and 

13 the Commissioner of Reclamation shall jointly 

14 establish a steering committee for the desalina15 tion program. 

16 (B) CHAIR.—The steering committee shall 

17 be jointly chaired by— 

18 (i) 1 representative from the Pro19 gram; and 

20 (ii) 1 representative from the Bureau 

21 of Reclamation. 

22 (f) WATER AND ENERGY SUSTAINABILITY PRO23 GRAM.— 

24 (1) IN GENERAL.—The Secretary shall carry 

25 out a research program to develop technologies to 
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1 assist in ensuring that sufficient quantities of water 

2 are available to meet present and future require3 ments. 

4 (2) ASSESSMENTS.—Under the program and in 

5 collaboration with other programs within the De6 partment (including programs within the Offices of 

7 Fossil Energy and Energy Efficiency and Renewable 

8 Energy), the Secretary of the Interior, the Corps of 

9 Engineers, the Environmental Protection Agency, 

10 the Department of Commerce, the Department of 

11 Defense, State agencies, nongovernmental agencies, 

12 and academia, the Secretary shall assess the current 

13 state of knowledge and program activities con14 cerning— 

15 (A) future water resources needed to sup16 port energy production within the United 

17 States, including the water needs for hydro18 power and thermo-electric power generation; 

19 (B) future energy resources needed to sup20 port development of water purification and 

21 treatment, including desalination and long-dis22 tance water conveyance; 

23 (C) reuse and treatment of water produced 

24 as a byproduct of oil and gas extraction; 
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1 (D) use of impaired and nontraditional 

2 water supplies for energy production and other 

3 uses; and 

4 (E) technologies to reduce water use in en5 ergy production. 

6 (3) TOOLS.—In addition to the assessments 

7 conducted under paragraph (2), the Secretary 

8 shall— 

9 (A) develop a research plan that defines 

10 the scientific and technology development needs 

11 and activities required to support— 

12 (i) long-term water needs and plan13 ning for energy sustainability; 

14 (ii) use of impaired water for energy 

15 production and other uses; and 

16 (iii) reduction of water use in energy 

17 production; 

18 (B) carry out the research plan required 

19 under subparagraph (A), including development 

20 of numerical models, decision analysis tools, 

21 economic analysis tools, databases, planning 

22 methodologies, and strategies; 

23 (C) implement at least 3 planning dem24 onstration projects using the models, tools, and 

25 planning approaches developed under subpara-
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1 graph (B) and assess the viability of those tools 

2 on the scale of river basins with at least 1 dem3 onstration involving an international border; 

4 and 

5 (D) transfer those tools to other Federal 

6 agencies, State agencies, nonprofit organiza7 tions, industry, and academia for use in their 

8 energy and water sustainability efforts. 

9 (4) REPORT.—Not later than 1 year after the 

10 date of enactment of this Act, the Secretary shall 

11 submit to Congress a report on the water and en12 ergy sustainability program that— 

13 (A) describes the research elements de14 scribed under paragraph (2); and 

15 (B) makes recommendations for a manage16 ment structure that optimizes use of Federal 

17 resources and programs. 

18 (g) COST SHARING.— 

19 (1) RESEARCH PROJECTS.—A research project 

20 under this section shall not require cost-sharing. 

21 (2) DEMONSTRATION PROJECTS.—Each dem22 onstration project carried out under the Program 

23 shall be carried out in accordance with the cost-shar24 ing requirements of section 1002. 
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1 SEC. 971. SPALLATION NEUTRON SOURCE. 

2 (a) DEFINITIONS.—In this section: 

3 (1) SING.—The term ‘‘SING’’ means the 

4 Spallation Neutron Source Instruments Next Gen5 eration major item of equipment. 

6 (2) SNS POWER UPGRADE.—The term ‘‘SNS 

7 power upgrade’’ means the Spallation Neutron 

8 Source power upgrade described in the 20-year fa9 cilities plan of the Office of Science of the Depart10 ment. 

11 (3) SNS SECOND TARGET STATION.—The term 

12 ‘‘SNS second target station’’ the Spallation Neutron 

13 Source second target station described in the 20- 

14 year facilities plan of the Office of Science of the 

15 Department. 

16 (4) SPALLATION NEUTRON SOURCE FACILITY.— 

17 The terms ‘‘Spallation Neutron Source Facility’’ and 

18 ‘‘Facility’’ mean the completed Spallation Neutron 

19 Source scientific user facility located at Oak Ridge 

20 National Laboratory, Oak Ridge, Tennessee. 

21 (5) SPALLATION NEUTRON SOURCE PROJECT.— 

22 The terms ‘‘Spallation Neutron Source Project’’ and 

23 ‘‘Project’’ means Department Project 99–E–334, 

24 Oak Ridge National Laboratory, Oak Ridge, Ten25 nessee. 

26 (b) SPALLATION NEUTRON SOURCE PROJECT.— 
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1 (1) IN GENERAL.—The Secretary shall submit 

2 to Congress, as part of the annual budget request of 

3 the President submitted to Congress, a report on 

4 progress on the Spallation Neutron Source Project. 

5 (2) CONTENTS.—The report shall include for 

6 the Project— 

7 (A) a description of the achievement of 

8 milestones; 

9 (B) a comparison of actual costs to esti10 mated costs; and 

11 (C) any changes in estimated Project costs 

12 or schedule. 

13 (c) SPALLATION NEUTRON SOURCE FACILITY

14 PLAN.— 

15 (1) IN GENERAL.—The Secretary shall develop 

16 an operational plan for the Spallation Neutron 

17 Source Facility that ensures that the Facility is em18 ployed to the full capability of the Facility in sup19 port of the study of advanced materials, nanoscience, 

20 and other missions of the Office of Science of the 

21 Department. 

22 (2) PLAN.—The operational plan shall— 

23 (A) include a plan for the operation of an 

24 effective scientific user program that— 
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1 (i) is based on peer review of pro2 posals submitted for use of the Facility; 

3 (ii) includes scientific and technical 

4 support to ensure that external users, in5 cluding researchers based at institutions of 

6 higher education, are able to make full use 

7 of a variety of high quality scientific in8 struments; and 

9 (iii) phases in systems upgrades to en10 sure that the Facility remains at the fore11 front of international scientific endeavors 

12 in the field of the Facility throughout the 

13 operating life of the Facility; 

14 (B) include an ongoing program to develop 

15 new instruments that builds on the high per16 formance neutron source and that allows neu17 tron scattering techniques to be applied to a 

18 growing range of scientific problems and dis19 ciplines; and 

20 (C) address the status of and, to the max21 imum extent practicable, costs and schedules 

22 for— 

23 (i) full user mode operations of the 

24 Facility; 
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1 (ii) instrumentation built at the Facil2 ity during the operating phase through full 

3 use of the experimental hall, including the 

4 SING; 

5 (iii) the SNS power upgrade; and 

6 (iv) the SNS second target station. 

7 (d) AUTHORIZATION OF APPROPRIATIONS.— 

8 (1) SPALLATION NEUTRON SOURCE PROJECT.— 

9 There is authorized to be appropriated to carry out 

10 the Spallation Neutron Source Project for the life11 time of the Project $1,411,700,000 for total project 

12 costs, of which— 

13 (A) $1,192,700,000 shall be used for the 

14 costs of construction; and 

15 (B) $219,000,000 shall be used for other 

16 Project costs. 

17 (2) SPALLATION NEUTRON SOURCE FACILITY.— 

18 (A) IN GENERAL.—Except as provided in 

19 subparagraph (B), there is authorized to be ap20 propriated for the Spallation Neutron Source 

21 Facility for— 

22 (i) the SING, $75,000,000 for fiscal 

23 year 2006; and 
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1 (ii) the SNS power upgrade, 

2 $160,000,000 for each of fiscal years 2007 

3 and 2008. 

4 (B) INSUFFICIENT STOCKPILES OF HEAVY

5 WATER.—If stockpiles of heavy water of the 

6 Department are insufficient to meet the needs 

7 of the Facility, there is authorized to be appro8 priated for the Facility $172,000,000 for fiscal 

9 year 2007. 

10 Subtitle G—International 

11 Cooperation 

12 SEC. 981. WESTERN HEMISPHERE ENERGY COOPERATION. 

13 (a) PROGRAM.—The Secretary shall carry out a pro14 gram to promote cooperation on energy issues with coun15 tries of the Western Hemisphere. 

16 (b) ACTIVITIES.—Under the program, the Secretary 

17 shall fund activities to work with countries of the Western 

18 Hemisphere to— 

19 (1) increase the production of energy supplies; 

20 (2) improve energy efficiency; and 

21 (3) assist in the development and transfer of 

22 energy supply and efficiency technologies that would 

23 have a beneficial impact on world energy markets. 

24 (c) PARTICIPATION BY INSTITUTIONS OF HIGHER

25 EDUCATION.—To the extent practicable, the Secretary 
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1 shall carry out the program under this section with the 

2 participation of institutions of higher education so as to 

3 take advantage of the acceptance of institutions of higher 

4 education by countries of the Western Hemisphere as 

5 sources of unbiased technical and policy expertise when 

6 assisting the Secretary in— 

7 (1) evaluating new technologies; 

8 (2) resolving technical issues; 

9 (3) working with those countries in the develop10 ment of new policies; and 

11 (4) training policymakers, particularly in the 

12 case of institutions of higher education that involve 

13 the participation of minority students, such as— 

14 (A) Hispanic-serving institutions; and 

15 (B) part B institutions. 

16 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

17 are authorized to be appropriated to carry out this sec18 tion— 

19 (1) $10,000,000 for fiscal year 2006; 

20 (2) $13,000,000 for fiscal year 2007; and 

21 (3) $16,000,000 for fiscal year 2008. 

22 SEC. 982. COOPERATION BETWEEN UNITED STATES AND 

23 ISRAEL. 

24 (a) FINDINGS.—Congress finds that— 
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1 (1) on February 1, 1996, the United States and 

2 Israel signed the agreement entitled ‘‘Agreement be3 tween the Department of Energy of the United 

4 States of America and the Ministry of Energy and 

5 Infrastructure of Israel Concerning Energy Coopera6 tion’’, (referred to in this section as the ‘‘Agree7 ment’’) to establish a framework for collaboration 

8 between the United States and Israel in energy re9 search and development activities; 

10 (2) the Agreement entered into force in Feb11 ruary 2000; 

12 (3) in February 2005, the Agreement was auto13 matically renewed for 1 additional 5-year period pur14 suant to Article X of the Agreement; and 

15 (4) under the Agreement, the United States 

16 and Israel may cooperate in energy research and de17 velopment in a variety of alternative and advanced 

18 energy sectors. 

19 (b) REPORT TO CONGRESS.—Not later than 90 days 

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

21 submit to the Committee on Energy and Natural Re22 sources of the Senate and the Committee on Energy and 

23 Commerce of the House of Representatives a report that 

24 describes— 
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1 (1) the ways in which the United States and 

2 Israel have cooperated on energy research and devel3 opment activities under the Agreement; 

4 (2) projects initiated pursuant to the Agree5 ment; and 

6 (3) plans for future cooperation and joint 

7 projects under the Agreement. 

8 (c) SENSE OF CONGRESS.—It is the sense of Con9 gress that energy cooperation between the Governments 

10 of the United States and Israel is mutually beneficial in 

11 the development of energy technology. 

12 TITLE X—DEPARTMENT OF 

13 ENERGY MANAGEMENT 

14 SEC. 1001. AVAILABILITY OF FUNDS. 

15 Funds authorized to be appropriated to the Depart16 ment under this Act or an amendment made by this Act 

17 shall remain available until expended. 

18 SEC. 1002. COST SHARING. 

19 (a) APPLICABILITY.—Notwithstanding any other pro20 vision of law, in carrying out a research, development, 

21 demonstration, or commercial application activity that is 

22 initiated after the date of enactment of this section, the 

23 Secretary shall require cost-sharing in accordance with 

24 this section. 

25 (b) RESEARCH AND DEVELOPMENT.— 
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1 (1) IN GENERAL.—Except as provided in para2 graphs (2) and (3) and subsection (f), the Secretary 

3 shall require not less than 20 percent of the cost of 

4 a research or development activity described in sub5 section (a) to be provided by a non-Federal source. 

6 (2) EXCLUSION.—Paragraph (1) shall not apply 

7 to a research or development activity described in 

8 subsection (a) that is of a basic or fundamental na9 ture, as determined by the appropriate officer of the 

10 Department. 

11 (3) REDUCTION.—The Secretary may reduce or 

12 eliminate the requirement of paragraph (1) for a re13 search and development activity of an applied nature 

14 if the Secretary determines that the reduction is nec15 essary and appropriate. 

16 (c) DEMONSTRATION AND COMMERCIAL APPLICA17 TION.— 

18 (1) IN GENERAL.—Except as provided in para19 graph (2) and subsection (f), the Secretary shall re20 quire that not less than 50 percent of the cost of a 

21 demonstration or commercial application activity de22 scribed in subsection (a) to be provided by a non23 Federal source. 

24 (2) REDUCTION OF NON-FEDERAL SHARE.— 

25 The Secretary may reduce the non-Federal share re-
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1 quired under paragraph (1) if the Secretary deter2 mines the reduction to be necessary and appropriate, 

3 taking into consideration any technological risk re4 lating to the activity. 

5 (d) CALCULATION OF AMOUNT.—In calculating the 

6 amount of a non-Federal contribution under this section, 

7 the Secretary— 

8 (1) may include allowable costs in accordance 

9 with the applicable cost principles, including— 

10 (A) cash; 

11 (B) personnel costs; 

12 (C) the value of a service, other resource, 

13 or third party in-kind contribution determined 

14 in accordance with the applicable circular of the 

15 Office of Management and Budget; 

16 (D) indirect costs or facilities and adminis17 trative costs; or 

18 (E) any funds received under the power 

19 program of the Tennessee Valley Authority (ex20 cept to the extent that such funds are made 

21 available under an annual appropriation Acts); 

22 and 

23 (2) shall not include— 
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1 (A) revenues or royalties from the prospec2 tive operation of an activity beyond the time 

3 considered in the award; 

4 (B) proceeds from the prospective sale of 

5 an asset of an activity; or 

6 (C) other appropriated Federal funds. 

7 (e) REPAYMENT OF FEDERAL SHARE.—The Sec8 retary shall not require repayment of the Federal share 

9 of a cost-shared activity under this section as a condition 

10 of making an award. 

11 (f) EXCLUSIONS.—This section shall not apply to— 

12 (1) a cooperative research and development 

13 agreement under the Stevenson-Wydler Technology 

14 Innovation Act of 1990 (15 U.S.C. 3701 et seq.); 

15 (2) a fee charged for the use of a Department 

16 facility; or 

17 (3) an award under— 

18 (A) the small business innovation research 

19 program under section 9 of the Small Business 

20 Act (15 U.S.C. 638); or 

21 (B) the small business technology transfer 

22 program under that section. 

23 SEC. 1003. MERIT REVIEW OF PROPOSALS. 

24 Awards of funds authorized under this Act or an 

25 amendment made by this Act shall be made only after an 
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1 impartial review of the scientific and technical merit of 

2 the proposals for the awards has been carried out by or 

3 for the Department. 

4 SEC. 1004. EXTERNAL TECHNICAL REVIEW OF DEPART5 MENTAL PROGRAMS. 

6 (a) NATIONAL ENERGY RESEARCH AND DEVELOP7 MENT ADVISORY BOARDS.— 

8 (1) ESTABLISHMENT.—The Secretary shall es9 tablish 1 or more advisory boards to review research, 

10 development, demonstration, and commercial appli11 cation programs of the Department in energy effi12 ciency, renewable energy, nuclear energy, and fossil 

13 energy. 

14 (2) ALTERNATIVES.—The Secretary may— 

15 (A) designate an existing advisory board 

16 within the Department to fulfill the responsibil17 ities of an advisory board under this section; 

18 and 

19 (B) enter into appropriate arrangements 

20 with the National Academy of Sciences to es21 tablish such an advisory board. 

22 (b) USE OF EXISTING COMMITTEES.—The Secretary 

23 shall continue to use the scientific program advisory com24 mittees chartered under the Federal Advisory Committee 
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1 Act (5 U.S.C. App.) by the Office of Science to oversee 

2 research and development programs under that Office. 

3 (c) MEMBERSHIP.—Each advisory board under this 

4 section shall consist of persons with appropriate expertise 

5 representing a diverse range of interests. 

6 (d) MEETINGS AND GOALS.— 

7 (1) MEETINGS.—Each advisory board under 

8 this section shall meet at least semiannually to re9 view and advise on the progress made by the respec10 tive 1 or more research, development, demonstration, 

11 and commercial application programs. 

12 (2) GOALS.—The advisory board shall review 

13 the measurable cost and performance-based goals for 

14 the programs as established under section 902, and 

15 the progress on meeting the goals. 

16 (e) PERIODIC REVIEWS AND ASSESSMENTS.— 

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

18 into appropriate arrangements with the National 

19 Academy of Sciences to conduct periodic reviews and 

20 assessments of— 

21 (A) the programs authorized by this Act 

22 and amendments made by this Act; 

23 (B) the measurable cost and performance24 based goals for the programs as established 

25 under section 902, if any; and 
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1 (C) the progress on meeting the goals. 

2 (2) TIMING.—The reviews and assessments 

3 shall be conducted every 5 years or more often as 

4 the Secretary considers necessary. 

5 (3) REPORTS.—The Secretary shall submit to 

6 Congress reports describing the results of all the re7 views and assessments. 

8 SEC. 1005. IMPROVED TECHNOLOGY TRANSFER OF ENERGY 

9 TECHNOLOGIES. 

10 (a) TECHNOLOGY TRANSFER COORDINATOR.—The 

11 Secretary shall appoint a Technology Transfer Coordi12 nator to be the principal advisor to the Secretary on all 

13 matters relating to technology transfer and commercializa14 tion. 

15 (b) QUALIFICATIONS.—The Coordinator shall be an 

16 individual who, by reason of professional background and 

17 experience, is specially qualified to advise the Secretary 

18 on matters pertaining to technology transfer at the De19 partment. 

20 (c) DUTIES OF THE COORDINATOR.—The Coordi21 nator shall oversee— 

22 (1) the activities of the Technology Transfer 

23 Working Group established under subsection (d); 

24 (2) the expenditure of funds allocated for tech25 nology transfer within the Department; 
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1 (3) the activities of each technology partnership 

2 ombudsman appointed under section 11 of the Tech3 nology Transfer Commercialization Act of 2000 (42 

4 U.S.C. 7261c); and 

5 (4) efforts to engage private sector entities, in6 cluding venture capital companies. 

7 (d) TECHNOLOGY TRANSFER WORKING GROUP.— 

8 The Secretary shall establish a Technology Transfer 

9 Working Group, which shall consist of representatives of 

10 the National Laboratories and single-purpose research fa11 cilities, to— 

12 (1) coordinate technology transfer activities oc13 curring at National Laboratories and single-purpose 

14 research facilities; 

15 (2) exchange information about technology 

16 transfer practices, including alternative approaches 

17 to resolution of disputes involving intellectual prop18 erty rights and other technology transfer matters; 

19 and 

20 (3) develop and disseminate to the public and 

21 prospective technology partners information about 

22 opportunities and procedures for technology transfer 

23 with the Department, including opportunities and 

24 procedures related to alternative approaches to reso-
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1 lution of disputes involving intellectual property 

2 rights and other technology transfer matters. 

3 (e) TECHNOLOGY COMMERCIALIZATION FUND.—The 

4 Secretary shall establish an Energy Technology Commer5 cialization Fund, using 0.5 percent of the amount made 

6 available to the Department for each fiscal year, to be 

7 used to provide matching funds with private partners to 

8 promote promising technologies for commercial purposes. 

9 (f) TECHNOLOGY TRANSFER RESPONSIBILITY.— 

10 Nothing in this section affects the technology transfer re11 sponsibilities of Federal employees under the Stevenson12 Wydler Technology Innovation Act of 1980 (15 U.S.C. 

13 3701 et seq.). 

14 (g) PLANNING AND REPORTING.— 

15 (1) IN GENERAL.—Not later than 180 days 

16 after the date of enactment of this Act, the Sec17 retary shall submit to Congress a technology trans18 fer execution plan. 

19 (2) UPDATES.—Each year after the submission 

20 of the plan under paragraph (1), the Secretary shall 

21 submit to Congress an updated execution plan and 

22 reports that describe progress toward meeting goals 

23 set forth in the execution plan and the funds ex24 pended under subsection (e). 
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1 SEC. 1006. TECHNOLOGY INFRASTRUCTURE PROGRAM. 

2 (a) DEFINITIONS.—In this section: 

3 (1) PROGRAM.—The term ‘‘Program’’ means 

4 the Technology Infrastructure Program established 

5 under subsection (b). 

6 (2) TECHNOLOGY CLUSTER.—The term ‘‘tech7 nology cluster’’ means a concentration of technology8 related business concerns, institutions of higher edu9 cation, or nonprofit institutions, that reinforce each 

10 other’s performance in the areas of technology devel11 opment through formal or informal relationships. 

12 (3) TECHNOLOGY-RELATED BUSINESS CON13 CERN.—The term ‘‘technology-related business con14 cern’’ means a for-profit corporation, company, asso15 ciation, firm, partnership, or small business concern 

16 that— 

17 (A) conducts scientific or engineering re18 search; 

19 (B) develops new technologies; 

20 (C) manufactures products based on new 

21 technologies; or 

22 (D) performs technological services. 

23 (b) ESTABLISHMENT.—The Secretary shall establish 

24 a Technology Infrastructure Program in accordance with 

25 this section. 
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1 (c) PURPOSE.—The purpose of the Program shall be 

2 to improve the ability of National Laboratories and single3 purpose research facilities to support departmental mis4 sions by— 

5 (1) stimulating the development of technology 

6 clusters that can support departmental missions at 

7 the National Laboratories or single-purpose research 

8 facilities; 

9 (2) improving the ability of National Labora10 tories and single-purpose research facilities to lever11 age and benefit from commercial research, tech12 nology, products, processes, and services; and 

13 (3) encouraging the exchange of scientific and 

14 technological expertise between— 

15 (A) National Laboratories or single-pur16 pose research facilities; and 

17 (B) entities that can support departmental 

18 missions at the National Laboratories or single19 purpose research facilities, such as— 

20 (i) institutions of higher education; 

21 (ii) technology-related business con22 cerns; 

23 (iii) nonprofit institutions; and 

24 (iv) agencies of State, tribal, or local 

25 governments. 
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1 (d) PROJECTS.—The Secretary shall authorize the di2 rector of each National Laboratory or single-purpose re3 search facility to implement the Program at the National 

4 Laboratory or facility through 1 or more projects that 

5 meet the requirements of subsections (e) and (f). 

6 (e) PROGRAM REQUIREMENTS.— 

7 (1) IN GENERAL.—Each project funded under 

8 this section shall meet the requirements of this sub9 section. 

10 (2) ENTITIES.—Each project shall include at 

11 least 1 of each of the following entities: 

12 (A) A business. 

13 (B) An institution of higher education. 

14 (C) A nonprofit institution. 

15 (D) An agency of a State, local, or tribal 

16 government. 

17 (3) COST-SHARING.— 

18 (A) IN GENERAL.—The costs of carrying 

19 out projects under this section shall be shared 

20 in accordance with section 1002. 

21 (B) SOURCES.—The calculation of costs 

22 paid by the non-Federal sources for a project 

23 shall include cash, personnel, services, equip24 ment, and other resources expended on the 

25 project after the commencement of the project. 
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1 (C) RESEARCH AND DEVELOPMENT EX2 PENSES.—Independent research and develop3 ment expenses of Government contractors that 

4 qualify for reimbursement under section 

5 31.205–18(e) of title 48, Code of Federal Regu6 lations, issued pursuant to section 25(c)(1) of 

7 the Office of Federal Procurement Policy Act 

8 (41 U.S.C. 421(c)(1)), may be credited towards 

9 costs paid by non-Federal sources to a project, 

10 if the expenses meet the other requirements of 

11 this section. 

12 (4) COMPETITIVE SELECTION.—A project under 

13 this section shall be competitively selected using pro14 cedures determined by the Secretary. 

15 (5) ACCOUNTING.—Any participant that re16 ceives funds under this section may use generally ac17 cepted accounting principles for maintaining ac18 counts, books, and records relating to the project. 

19 (6) DURATION.—No Federal funds shall be 

20 made available under this section for a construction 

21 project or for any project with a duration of more 

22 than 5 years. 

23 (f) SELECTION CRITERIA.— 

24 (1) DEPARTMENTAL MISSIONS.—The Secretary 

25 shall allocate funds under this section only if the Di-
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1 rector of the National Laboratory or single-purpose 

2 research facility managing the project determines 

3 that the project is likely to improve the ability of the 

4 National Laboratory or single-purpose research facil5 ity to achieve technical success in meeting depart6 mental missions. 

7 (2) OTHER CRITERIA.—In selecting a project to 

8 receive Federal funds, the Secretary shall consider— 

9 (A) the potential of the project to promote 

10 the development of a commercially sustainable 

11 technology cluster following the period of invest12 ment by the Department, which will derive most 

13 of the demand for its products or services from 

14 the private sector, and which will support de15 partmental missions at the participating Na16 tional Laboratory or single-purpose research fa17 cility; 

18 (B) the potential of the project to promote 

19 the use of commercial research, technology, 

20 products, processes, and services by the partici21 pating National Laboratory or single-purpose 

22 research facility to achieve its mission or the 

23 commercial development of technological inno24 vations made at the participating National Lab25 oratory or single-purpose research facility; 
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1 (C) the extent to which the project involves 

2 a wide variety and number of institutions of 

3 higher education, nonprofit institutions, and 

4 technology-related business concerns that can 

5 support the missions of the participating Na6 tional Laboratory or single-purpose research fa7 cility and that will make substantive contribu8 tions to achieving the goals of the project; 

9 (D) the extent to which the project focuses 

10 on promoting the development of technology-re11 lated business concerns that are small busi12 nesses or involves such small businesses sub13 stantively in the project; and 

14 (E) such other criteria as the Secretary de15 termines to be appropriate. 

16 (g) ALLOCATION.—In allocating funds for projects 

17 approved under this section, the Secretary shall provide— 

18 (1) the Federal share of the project costs; and 

19 (2) additional funds to the National Laboratory 

20 or single-purpose research facility managing the 

21 project to permit the National Laboratory or single22 purpose research facility to carry out activities relat23 ing to the project, and to coordinate the activities 

24 with the project. 
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1 (h) REPORT TO CONGRESS.—Not later than July 1, 

2 2008, the Secretary shall submit to Congress a report on 

3 whether the Program should be continued and, if so, how 

4 the program should be managed. 

5 (i) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Secretary for ac7 tivities under this section $10,000,000 for each of fiscal 

8 years 2006 through 2008. 

9 SEC. 1007. SMALL BUSINESS ADVOCACY AND ASSISTANCE. 

10 (a) SMALL BUSINESS ADVOCATE.—The Secretary 

11 shall require the Director of each National Laboratory, 

12 and may require the Director of a single-purpose research 

13 facility, to designate a small business advocate to— 

14 (1) increase the participation of small business 

15 concerns, including socially and economically dis16 advantaged small business concerns (as defined in 

17 section 8(a)(4) of the Small Business Act (15 U.S.C. 

18 637(a)(4))), in procurement, collaborative research, 

19 technology licensing, and technology transfer activi20 ties conducted by the National Laboratory or single21 purpose research facility; 

22 (2) report to the Director of the National Lab23 oratory or single-purpose research facility on the ac24 tual participation of small business concerns in pro25 curement and collaborative research along with rec-
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1 ommendations, if appropriate, on how to improve 

2 participation; 

3 (3) make available to small business concerns 

4 training, mentoring, and information on how to par5 ticipate in procurement and collaborative research 

6 activities; 

7 (4) increase the awareness inside the National 

8 Laboratory or single-purpose research facility of the 

9 capabilities and opportunities presented by small 

10 business concerns; and 

11 (5) establish guidelines for the program under 

12 subsection (b) and report on the effectiveness of the 

13 program to the Director of the National Laboratory 

14 or single-purpose research facility. 

15 (b) ESTABLISHMENT OF SMALL BUSINESS ASSIST16 ANCE PROGRAM.—The Secretary shall require the Direc17 tor of each National Laboratory, and may require the Di18 rector of a single-purpose research facility, to establish a 

19 program to provide small business concerns with— 

20 (1) assistance directed at making the small 

21 business concerns more effective and efficient sub22 contractors or suppliers to the National Laboratory 

23 or single-purpose research facilities; or 

24 (2) general technical assistance, the cost of 

25 which shall not exceed $10,000 per instance of as-
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1 sistance, to improve the products or services of the 

2 small business concern. 

3 (c) USE OF FUNDS.—None of the funds expended 

4 under subsection (b) may be used for direct grants to 

5 small business concerns. 

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

7 authorized to be appropriated to the Secretary for activi8 ties under this section $5,000,000 for each of fiscal years 

9 2006 through 2008. 

10 SEC. 1008. OUTREACH. 

11 The Secretary shall ensure that each program au12 thorized by this Act or an amendment made by this Act 

13 includes an outreach component to provide information, 

14 as appropriate, to manufacturers, consumers, engineers, 

15 architects, builders, energy service companies, institutions 

16 of higher education, facility planners and managers, State 

17 and local governments, and other entities. 

18 SEC. 1009. RELATIONSHIP TO OTHER LAWS. 

19 Except as otherwise provided in this Act or an 

20 amendment made by this Act, the Secretary shall carry 

21 out the research, development, demonstration, and com22 mercial application programs, projects, and activities au23 thorized by this Act or an amendment made by this Act 

24 in accordance with the applicable provisions of— 
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1 (1) the Atomic Energy Act of 1954 (42 U.S.C. 

2 2011 et seq.); 

3 (2) the Federal Nonnuclear Energy Research 

4 and Development Act of 1974 (42 U.S.C. 5901 et 

5 seq.); 

6 (3) the Energy Policy Act of 1992 (42 U.S.C. 

7 13201 et seq.); 

8 (4) the Stevenson-Wydler Technology Innova9 tion Act of 1980 (15 U.S.C. 3701 et seq.); 

10 (5) chapter 18 of title 35, United States Code 

11 (commonly known as the ‘‘Bayh-Dole Act’’); and 

12 (6) any other Act under which the Secretary is 

13 authorized to carry out the programs, projects, and 

14 activities. 

15 SEC. 1010. IMPROVED COORDINATION AND MANAGEMENT 

16 OF CIVILIAN SCIENCE AND TECHNOLOGY 

17 PROGRAMS. 

18 (a) EFFECTIVE TOP-LEVEL COORDINATION OF RE19 SEARCH AND DEVELOPMENT PROGRAMS.—Section 202 of 

20 the Department of Energy Organization Act (42 U.S.C. 

21 7132) is amended by striking subsection (b) and inserting 

22 the following: 

23 ‘‘(b)(1) There shall be in the Department an Under 

24 Secretary for Energy and Science, who shall be appointed 
578 

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1 by the President, by and with the advice and consent of 

2 the Senate. 

3 ‘‘(2) The Under Secretary shall be compensated at 

4 the rate provided for level III of the Executive Schedule 

5 under section 5314 of title 5, United States Code. 

6 ‘‘(3) The Under Secretary for Energy and Science 

7 shall be appointed from among persons who— 

8 ‘‘(A) have extensive background in scientific or 

9 engineering fields; and 

10 ‘‘(B) are well qualified to manage the civilian 

11 research and development programs of the Depart12 ment. 

13 ‘‘(4) The Under Secretary for Energy and Science 

14 shall— 

15 ‘‘(A) serve as the Science and Technology Advi16 sor to the Secretary; 

17 ‘‘(B) monitor the research and development 

18 programs of the Department in order to advise the 

19 Secretary with respect to any undesirable duplication 

20 or gaps in the programs; 

21 ‘‘(C) advise the Secretary with respect to the 

22 well-being and management of the multipurpose lab23 oratories under the jurisdiction of the Department; 

24 ‘‘(D) advise the Secretary with respect to edu25 cation and training activities required for effective 
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1 short- and long-term basic and applied research ac2 tivities of the Department; 

3 ‘‘(E) advise the Secretary with respect to grants 

4 and other forms of financial assistance required for 

5 effective short- and long-term basic and applied re6 search activities of the Department; 

7 ‘‘(F) bear primary responsibility for energy con8 servation; and 

9 ‘‘(G) exercise authority and responsibility over 

10 Assistant Secretaries carrying out energy research 

11 and development and energy technology functions 

12 under sections 203 and 209, as well as other ele13 ments of the Department assigned by the Sec14 retary.’’. 

15 (b) RECONFIGURATION OF POSITION OF DIRECTOR

16 OF THE OFFICE OF SCIENCE.— 

17 (1) IN GENERAL.—Section 209 of the Depart18 ment of Energy Organization Act (41 U.S.C. 7139) 

19 is amended to read as follows: 

20 ‘‘OFFICE OF SCIENCE

21 ‘‘SEC. 209. (a) There shall be within the Department 

22 an Office of Science, to be headed by an Assistant Sec23 retary for Science, who shall be appointed by the Presi24 dent, by and with the advice and consent of the Senate, 

25 and who shall be compensated at the rate provided for 
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1 level IV of the Executive Schedule under section 5315 of 

2 title 5, United States Code. 

3 ‘‘(b) The Assistant Secretary for Science shall be in 

4 addition to the Assistant Secretaries provided for under 

5 section 203. 

6 ‘‘(c) It shall be the duty and responsibility of the As7 sistant Secretary for Science to carry out the fundamental 

8 science and engineering research functions of the Depart9 ment, including the responsibility for policy and manage10 ment of the research, as well as other functions vested in 

11 the Secretary that the Secretary may assign to the Assist12 ant Secretary.’’. 

13 (2) DIRECTOR OF THE OFFICE OF SCIENCE.— 

14 (A) IN GENERAL.—Notwithstanding sec15 tion 3345(b)(1) of title 5, United States Code, 

16 the President may designate the Director of the 

17 Office of Science who served immediately before 

18 the date of enactment of this Act to act in the 

19 office of the Assistant Secretary of Energy for 

20 Science until the office is filled as provided in 

21 section 209 of the Department of Energy Orga22 nization Act (as amended by paragraph (1)). 

23 (B) COMPENSATION.—While so acting, the 

24 person shall receive compensation at the rate 

25 provided by section 209(a) of that Act (as 
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1 amended by paragraph (1)) for the office of As2 sistant Secretary for Science. 

3 (c) ADDITIONAL ASSISTANT SECRETARY POSITION

4 TO ENABLE IMPROVED MANAGEMENT OF NUCLEAR EN5 ERGY ISSUES.— 

6 (1) IN GENERAL.—Section 203(a) of the De7 partment of Energy Organization Act (42 U.S.C. 

8 7133(a)) is amended in the first sentence by striking 

9 ‘‘There shall be in the Department six Assistant 

10 Secretaries’’ and inserting ‘‘Except as provided in 

11 section 209, there shall be in the Department 7 As12 sistant Secretaries’’. 

13 (2) ASSISTANT SECRETARY LEVEL.—It is the 

14 sense of Congress that the leadership for depart15 mental missions in nuclear energy should be at the 

16 Assistant Secretary level. 

17 (d) TECHNICAL AND CONFORMING AMENDMENTS.— 

18 (1) Section 202 of the Department of Energy 

19 Organization Act (42 U.S.C. 7132) (as amended by 

20 subsection (b)(1)) is amended by adding at the end 

21 the following: 

22 ‘‘(d)(1) There shall be in the Department an Under 

23 Secretary, who shall be appointed by the President, by and 

24 with the advice and consent of the Senate, and who shall 
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1 perform such functions and duties as the Secretary shall 

2 prescribe, consistent with this section. 

3 ‘‘(2) The Under Secretary shall be compensated at 

4 the rate provided for level III of the Executive Schedule 

5 under section 5314 of title 5, United States Code. 

6 ‘‘(e)(1) There shall be in the Department a General 

7 Counsel, who shall be appointed by the President, by and 

8 with the advice and consent of the Senate, and who shall 

9 perform such functions and duties as the Secretary shall 

10 prescribe. 

11 ‘‘(2) The General Counsel shall be compensated at 

12 the rate provided for level IV of the Executive Schedule 

13 under section 5315 of title 5, United States Code.’’. 

14 (2) Section 5314 of title 5, United States Code, 

15 is amended by striking ‘‘Under Secretaries of En16 ergy (2)’’ and inserting ‘‘Under Secretaries of En17 ergy (3)’’. 

18 (3) Section 5315 of title 5, United States Code, 

19 is amended— 

20 (A) by striking ‘‘Assistant Secretaries of 

21 Energy (6)’’ and inserting ‘‘Assistant Secre22 taries of Energy (8)’’; and 

23 (B) by striking ‘‘Director, Office of 

24 Science, Department of Energy.’’. 
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1 SEC. 1011. OTHER TRANSACTIONS AUTHORITY. 

2 Section 646 of the Department of Energy Organiza3 tion Act (42 U.S.C. 7256) is amended by adding at the 

4 end the following: 

5 ‘‘(g)(1) In addition to other authorities granted to the 

6 Secretary under any other provision of law, the Secretary 

7 may enter into other transactions on such terms as the 

8 Secretary may consider appropriate in furtherance of re9 search, development, or demonstration functions vested in 

10 the Secretary. 

11 ‘‘(2) The other transactions shall not be subject to 

12 section 9 of the Federal Nonnuclear Energy Research and 

13 Development Act of 1974 (42 U.S.C. 5908). 

14 ‘‘(3)(A) The Secretary shall ensure that— 

15 ‘‘(i) to the maximum extent the Secretary de16 termines practicable, no transaction entered into 

17 under paragraph (1) provides for research, develop18 ment, or demonstration that duplicates research, de19 velopment, or demonstration being conducted under 

20 existing projects carried out by the Department; 

21 ‘‘(ii) to the extent the Secretary determines 

22 practicable, the funds provided by the Federal Gov23 ernment under a transaction authorized by para24 graph (1) do not exceed the total amount provided 

25 by other parties to the transaction; and 
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1 ‘‘(iii) to the extent the Secretary determines 

2 practicable, competitive, merit-based selection proce3 dures shall be used when entering into transactions 

4 under paragraph (1). 

5 ‘‘(B) A transaction authorized by paragraph (1) may 

6 be used for a research, development, or demonstration 

7 project only if the Secretary determines the use of a stand8 ard contract, grant, or cooperative agreement for the 

9 project is not feasible or appropriate. 

10 ‘‘(4)(A) The Secretary shall protect from disclosure 

11 (including disclosure under section 552 of title 5, United 

12 States Code) for up to 5 years after the date the informa13 tion is received by the Secretary— 

14 ‘‘(i) a proposal, proposal abstract, and sup15 porting documents submitted to the Department in 

16 a competitive or noncompetitive process having the 

17 potential for resulting in an award to the party sub18 mitting the information entering into a transaction 

19 under paragraph (1); and 

20 ‘‘(ii) a business plan and technical information 

21 relating to a transaction authorized by paragraph 

22 (1) submitted to the Department as confidential 

23 business information. 

24 ‘‘(B) The Secretary may protect from disclosure, for 

25 up to 5 years after the information was developed, any 
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1 information developed pursuant to a transaction under 

2 paragraph (1) which developed information is of a char3 acter that it would be protected from disclosure under sec4 tion 552(b)(4) of title 5, United States Code, if obtained 

5 from a person other than a Federal agency. 

6 ‘‘(5)(A) Not later than 90 days after the date of en7 actment of this subsection, the Secretary shall prescribe 

8 guidelines for using other transactions authorized by para9 graph (1). 

10 ‘‘(B) The guidelines shall be published in the Federal 

11 Register for public comment under rulemaking procedures 

12 of the Department. 

13 ‘‘(6) The authority of the Secretary under this sub14 section may be delegated only to an officer of the Depart15 ment who is appointed by the President by and with the 

16 advice and consent of the Senate and may not be delegated 

17 to any other person.’’. 

18 SEC. 1012. PRIZES FOR ACHIEVEMENT IN GRAND CHAL19 LENGES OF SCIENCE AND TECHNOLOGY. 

20 (a) AUTHORITY.—The Secretary may carry out a 

21 program to award cash prizes in recognition of break22 through achievements in research, development, dem23 onstration, and commercial application that have the po24 tential for application to the performance of the mission 

25 of the Department. 
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1 (b) COMPETITION REQUIREMENTS.—The program 

2 under subsection (a) may include prizes for the achieve3 ment of goals articulated by the Secretary in a specific 

4 area through a widely advertised solicitation of submission 

5 of results for research, development, demonstration, or 

6 commercial application projects. 

7 (c) RELATIONSHIP TO OTHER AUTHORITY.—The 

8 program under subsection (a) may be carried out in con9 junction with or in addition to the exercise of any other 

10 authority of the Secretary to acquire, support, or stimulate 

11 research, development, demonstration, or commercial ap12 plication projects. 

13 SEC. 1013. TECHNICAL CORRECTIONS. 

14 (a) COAL RESEARCH AND DEVELOPMENT.— 

15 (1) IN GENERAL.—Public Law 86–599 (30 

16 U.S.C. 661 et seq.) is amended— 

17 (A) by striking the first section (30 U.S.C. 

18 661) and inserting the following: 

19 ‘‘SECTION 1. (a) This Act may be cited as the ‘Coal 

20 Research and Development Act of 1960’. 

21 ‘‘(b) In this Act: 

22 ‘‘(1) The term ‘research’ means scientific, tech23 nical, and economic research and the practical appli24 cation of that research. 
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1 ‘‘(2) The term ‘Secretary’ means the Secretary 

2 of Energy.’’; 

3 (B) in section 2 (30 U.S.C. 662), by strik4 ing ‘‘shall establish within’’ and all that follows 

5 through ‘‘such Office’’; 

6 (C) by striking sections 3, 4, and 7 (30 

7 U.S.C. 663, 664, 667); and 

8 (D) by redesignating sections 5, 6, and 8 

9 (30 U.S.C. 665, 666, 668) as sections 3, 4, and 

10 5, respectively. 

11 (2) PATENTS.—Section 210(a)(8) of title 35, 

12 United States Code, is amended by striking ‘‘Coal 

13 Research Development Act of 1960’’ and inserting 

14 ‘‘Coal Research and Development Act of 1960’’. 

15 (b) NONNUCLEAR ENERGY RESEARCH AND DEVEL16 OPMENT.— 

17 (1) SHORT TITLE; DEFINITIONS.—Section 1 of 

18 the Federal Nonnuclear Energy Research and Devel19 opment Act of 1974 (42 U.S.C. 5902) is amended 

20 to read as follows: 

21 ‘‘SHORT TITLE AND DEFINITIONS

22 ‘‘SECTION 1. (a) This Act may be cited as the ‘Fed23 eral Nonnuclear Energy Research and Development Act 

24 of 1974’’. 

25 ‘‘(b) In this Act: 
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1 ‘‘(1) The term ‘Department’ means the Depart2 ment of Energy. 

3 ‘‘(2) The term ‘Secretary’ means the Secretary 

4 of Energy.’’. 

5 (2) STATEMENT OF POLICY.—Section 3(b) of 

6 the Federal Nonnuclear Energy Research and Devel7 opment Act of 1974 (42 U.S.C. 5902(b)) is amend8 ed— 

9 (A) in paragraph (1), by striking ‘‘Energy 

10 Research and Development Administration’’ 

11 and inserting ‘‘Department’’; 

12 (B) in paragraph (2), by striking ‘‘Admin13 istrator of the Energy Research and Develop14 ment Administration (hereinafter in this Act re15 ferred to as the ‘Administrator’)’’ and inserting 

16 ‘‘Secretary’’; and 

17 (C) in paragraph (3)— 

18 (i) by striking ‘‘Administrator’’ and 

19 inserting ‘‘Secretary’’; and 

20 (ii) by inserting ‘‘Demonstration’’ 

21 after ‘‘Cooling’’. 

22 (3) DUTIES AND AUTHORITIES.—Section 4 of 

23 the Federal Nonnuclear Energy Research and Devel24 opment Act of 1974 (42 U.S.C. 5903) is amended— 
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1 (A) by striking the section heading and in2 serting the following: 

3 ‘‘DUTIES AND AUTHORITIES OF THE SECRETARY’’; 

4 and 

5 (B) in the matter preceding subsection (a), 

6 by striking ‘‘Administrator’’ and inserting ‘‘Sec7 retary’’. 

8 (4) COMPREHENSIVE PLANNING AND PROGRAM9 MING.—Section 6 of the Federal Nonnuclear Energy 

10 Research and Development Act of 1974 (42 U.S.C. 

11 5905) is amended— 

12 (A) by striking ‘‘Administrator’’ each place 

13 it appears and inserting ‘‘Secretary’’; and 

14 (B) in subsection (b)(3)— 

15 (i) in subparagraph (I), by inserting 

16 ‘‘Demonstration’’ after ‘‘Cooling’’; and 

17 (ii) in subparagraph (L), by inserting 

18 ‘‘Energy’’ after ‘‘Solar’’. 

19 (5) FORMS OF FEDERAL ASSISTANCE.—Section 

20 7 of the Federal Nonnuclear Energy Research and 

21 Development Act of 1974 (42 U.S.C. 5906) is 

22 amended— 

23 (A) by striking ‘‘Administrator’’ each place 

24 it appears and inserting ‘‘Secretary’’; and 

25 (B) in subsection (a)(4), by striking ‘‘of 

26 the section’’. 
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1 (6) DEMONSTRATIONS.—Section 8 of the Fed2 eral Nonnuclear Energy Research and Development 

3 Act of 1974 (42 U.S.C. 5907) is amended— 

4 (A) in subsections (a) through (c), by 

5 striking ‘‘Administrator’’ each place it appears 

6 and inserting ‘‘Secretary’’; 

7 (B) in subsection (d)— 

8 (i) in the first sentence of paragraph 

9 (1), by inserting ‘‘of the Energy Research 

10 and Development Administration’’ after 

11 ‘‘Administrator’’; and 

12 (ii) in paragraph (3), by striking ‘‘Ad13 ministrator’’ and inserting ‘‘Secretary’’; 

14 and 

15 (C) in subsection (f)— 

16 (i) by striking ‘‘Administrator’’ each 

17 place it appears and inserting ‘‘Secretary’’; 

18 and 

19 (ii) in the proviso of the first sen20 tence, by striking ‘‘Administrator’s’’ and 

21 inserting ‘‘Secretary’s’’. 

22 (7) PATENT POLICY.—Section 9 of the Federal 

23 Nonnuclear Energy Research and Development Act 

24 of 1974 (42 U.S.C. 5908) is amended— 
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1 (A) by striking ‘‘Administration’’ each 

2 place it appears and inserting ‘‘Department’’; 

3 (B) by striking ‘‘Administrator’’ each place 

4 it appears and inserting ‘‘Secretary’’; and 

5 (C) in subsection (c)(3), by striking ‘‘Ad6 ministration’s’’ and inserting ‘‘Department’s’’. 

7 (8) ACQUISITION OF ESSENTIAL MATERIALS.— 

8 Section 12 of the Federal Nonnuclear Energy Re9 search and Development Act of 1974 (42 U.S.C. 

10 5911) is amended by striking subsection (b) and in11 serting the following: 

12 ‘‘(b) A rule or order under subsection (a) shall be 

13 considered to be a major rule subject to chapter 8 of title 

14 5, United States Code.’’. 

15 (9) WATER RESOURCE EVALUATION.—Section 

16 13 of the Federal Nonnuclear Energy Research and 

17 Development Act of 1974 (42 U.S.C. 5912) is 

18 amended by striking ‘‘Administrator’’ each place it 

19 appears and inserting ‘‘Secretary’’. 

20 (10) AUTHORIZATION OF APPROPRIATIONS.— 

21 Section 16 of the Federal Nonnuclear Energy Re22 search and Development Act of 1974 (42 U.S.C. 

23 5915) is amended— 

24 (A) by striking the section heading and in25 serting the following: 
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1 ‘‘AUTHORIZATION OF APPROPRIATIONS’’; 

2 (B) by striking ‘‘(a) There may be appro3 priated to the Administrator’’ and inserting 

4 ‘‘There may be appropriated to the Secretary’’; 

5 and 

6 (C) by striking subsections (b) and (c). 

7 (11) CENTRAL SOURCE OF NONNUCLEAR EN8 ERGY INFORMATION.—Section 17 of the Federal 

9 Nonnuclear Energy Research and Development Act 

10 of 1974 (42 U.S.C. 5916) is amended— 

11 (A) by striking ‘‘Administrator’’ each place 

12 it appears and inserting ‘‘Secretary’’; 

13 (B) in the first sentence, by striking ‘‘Ad14 ministrator’s’’; 

15 (C) in the second sentence, by striking 

16 ‘‘he’’ and inserting ‘‘the Secretary’’; 

17 (D) in the third sentence— 

18 (i) in paragraph (2) of the first pro19 viso, by striking ‘‘section 1905 or title 18’’ 

20 and inserting ‘‘section 1905 of title 18’’; 

21 and 

22 (ii) in subparagraph (B) of the second 

23 proviso— 

24 (I) by striking ‘‘the Federal En25 ergy Administration,’’; 
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1 (II) by striking ‘‘the Federal 

2 Power Commission,’’ and inserting 

3 ‘‘the Federal Energy Regulatory Com4 mission’’; and 

5 (III) by striking ‘‘General Ac6 counting Office’’ and inserting ‘‘Gov7 ernment Accountability Office’’; and 

8 (E) in the last sentence, by inserting ‘‘or 

9 ranking minority member’’ after ‘‘chairman’’. 

10 (12) ENERGY INFORMATION, LOAN GUARAN11 TEES, AND FINANCIAL SUPPORT.—Sections 18 

12 through 20 of the Federal Nonnuclear Energy Re13 search and Development Act of 1974 (42 U.S.C. 

14 5917 through 5920) are repealed. 

15 (c) STEVENSON-WYDLER TECHNOLOGY INNOVATION

16 ACT OF 1980.—Section 20 of the Stevenson-Wydler Tech17 nology Innovation Act of 1980 (15 U.S.C. 3712) is 

18 amended by striking ‘‘and the National Science Founda19 tion’’ and inserting ‘‘, the Secretary of Energy, and the 

20 Director of the National Science Foundation’’. 

21 TITLE XI—PERSONNEL AND 

22 TRAINING 

23 SEC. 1101. WORKFORCE TRENDS AND TRAINEESHIP 

24 GRANTS. 

25 (a) DEFINITIONS.—In this section: 
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1 (1) ENERGY TECHNOLOGY INDUSTRY.—The 

2 term ‘‘energy technology industry’’ includes— 

3 (A) a renewable energy industry; 

4 (B) a company that develops or commer5 cializes a device to increase energy efficiency; 

6 (C) the oil and gas industry; 

7 (D) the nuclear power industry; 

8 (E) the coal industry; 

9 (F) the electric utility industry; and 

10 (G) any other industrial sector, as the Sec11 retary determines to be appropriate. 

12 (2) SKILLED TECHNICAL PERSONNEL.—The 

13 term ‘‘skilled technical personnel’’ means— 

14 (A) journey- and apprentice-level workers 

15 who are enrolled in, or have completed, a feder16 ally-recognized or State-recognized apprentice17 ship program; and 

18 (B) other skilled workers in energy tech19 nology industries, as determined by the Sec20 retary. 

21 (b) WORKFORCE TRENDS.— 

22 (1) MONITORING.—The Secretary, in consulta23 tion with, and using data collected by, the Secretary 

24 of Labor, shall monitor trends in the workforce of— 
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1 (A) skilled technical personnel that support 

2 energy technology industries; and 

3 (B) electric power and transmission engi4 neers. 

5 (2) REPORT.—As soon as practicable after the 

6 date on which the Secretary identifies or predicts a 

7 significant national shortage of skilled technical per8 sonnel in 1 or more energy technology industries, 

9 the Secretary shall submit to Congress a report de10 scribing the shortage. 

11 (c) TRAINEESHIP GRANTS FOR SKILLED TECHNICAL

12 PERSONNEL.—The Secretary, in consultation with the 

13 Secretary of Labor, may establish programs in the appro14 priate offices of the Department under which the Sec15 retary provides grants to enhance training (including dis16 tance learning) for any workforce category for which a 

17 shortage is identified or predicted under subsection (b)(2). 

18 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

19 authorized to be appropriated to carry out this section 

20 $20,000,000 for each of fiscal years 2006 through 2008. 

21 SEC. 1102. ENERGY RESEARCH FELLOWSHIPS. 

22 (a) POSTDOCTORAL FELLOWSHIP PROGRAM.—The 

23 Secretary shall establish a program under which the Sec24 retary provides fellowships to encourage outstanding 

25 young scientists and engineers to pursue postdoctoral re-
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1 search appointments in energy research and development 

2 at institutions of higher education of their choice. 

3 (b) SENIOR RESEARCH FELLOWSHIPS.— 

4 (1) IN GENERAL.—The Secretary shall establish 

5 a program under which the Secretary provides fel6 lowships to allow outstanding senior researchers and 

7 their research groups in energy research and devel8 opment to explore research and development topics 

9 of their choosing for a period of not less than 3 

10 years to be determined by the Secretary. 

11 (2) CONSIDERATION.—In providing a fellowship 

12 under the program described in paragraph (1), the 

13 Secretary shall consider— 

14 (A) the past scientific or technical accom15 plishment of a senior researcher; and 

16 (B) the potential for continued accomplish17 ment by the researcher during the period of the 

18 fellowship. 

19 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to carry out this section 

21 $40,000,000 for each of fiscal years 2006 through 2008. 

22 SEC. 1103. EDUCATIONAL PROGRAMS IN SCIENCE AND 

23 MATHEMATICS. 

24 (a) AUTHORIZED EDUCATION ACTIVITIES.—Section 

25 3165 of the Department of Energy Science Education En-
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1 hancement Act (42 U.S.C. 7381b) is amended by adding 

2 at the end: 

3 ‘‘(14) Support competitive events for students, 

4 under supervision of teachers, designed to encourage 

5 student interest and knowledge in science and math6 ematics. 

7 ‘‘(15) Support competitively-awarded science re8 source centers at National Laboratories to promote 

9 professional development of mathematics teachers 

10 and science teachers who teach in grades from kin11 dergarten through grade 12. 

12 ‘‘(16) Support summer internships at National 

13 Laboratories for mathematics teachers and science 

14 teachers who teach in grades from kindergarten 

15 through grade 12.’’. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.—Section 

17 3168 of the Department of Energy Science Education En18 hancement Act (42 U.S.C. 7381e) is amended by inserting 

19 before the period at the end the following: ‘‘and 

20 $40,000,000 for each of fiscal years 2006 through 2008.’’. 

21 SEC. 1104. TRAINING GUIDELINES FOR ELECTRIC ENERGY 

22 INDUSTRY PERSONNEL. 

23 (a) IN GENERAL.—The Secretary of Labor, in con24 sultation with the Secretary and in conjunction with the 

25 electric industry and recognized employee representatives, 
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1 shall develop model personnel training guidelines to sup2 port the reliability and safety of the electric system. 

3 (b) REQUIREMENTS.—The training guidelines under 

4 subsection (a) shall, at a minimum— 

5 (1) include training requirements for workers 

6 engaged in the construction, operation, inspection, or 

7 maintenance of electric generation, transmission, or 

8 distribution systems, including requirements relating 

9 to— 

10 (A) competency; 

11 (B) certification; and 

12 (C) assessment, including— 

13 (i) initial and continuous evaluation of 

14 workers; 

15 (ii) recertification procedures; and 

16 (iii) methods for examining or testing 

17 the qualification of an individual who per18 forms a covered task; and 

19 (2) consolidate training guidelines in existence 

20 on the date on which the guidelines under subsection 

21 (a) are developed relating to the construction, oper22 ation, maintenance, and inspection of electric gen23 eration, transmission, and distribution facilities, 

24 such as guidelines established by the National Elec-
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1 tric Safety Code and other industry consensus 

2 standards. 

3 SEC. 1105. NATIONAL CENTER FOR ENERGY MANAGEMENT 

4 AND BUILDING TECHNOLOGIES. 

5 The Secretary shall support the ongoing activities of 

6 the National Center for Energy Management and Building 

7 Technologies to carry out research, education, and train8 ing activities to facilitate the improvement of energy effi9 ciency, indoor environmental quality, and security of in10 dustrial, commercial, residential, and public buildings. 

11 SEC. 1106. IMPROVED ACCESS TO ENERGY-RELATED SCI12 ENTIFIC AND TECHNICAL CAREERS. 

13 (a) SCIENCE EDUCATION PROGRAMS.—Section 3164 

14 of the Department of Energy Science Education Enhance15 ment Act (42 U.S.C. 7381a) is amended by adding at the 

16 end the following: 

17 ‘‘(c) PROGRAMS FOR STUDENTS FROM UNDER-REP18 RESENTED GROUPS.—In carrying out a program under 

19 subsection (a), the Secretary shall give priority to activi20 ties that are designed to encourage students from under21 represented groups to pursue scientific and technical ca22 reers.’’. 

23 (b) PARTNERSHIPS WITH HISTORICALLY BLACK

24 COLLEGES AND UNIVERSITIES, HISPANIC-SERVICING IN25 STITUTIONS, AND TRIBAL COLLEGES.—The Department 
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1 of Energy Science Education Enhancement Act (42 

2 U.S.C. 7381 et seq.) is amended— 

3 (1) by redesignating sections 3167 and 3168 as 

4 sections 3168 and 3169, respectively; and 

5 (2) by inserting after section 3166 the fol6 lowing: 

7 ‘‘SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK 

8 COLLEGES AND UNIVERSITIES, HISPANIC9 SERVING INSTITUTIONS, AND TRIBAL COL10 LEGES. 

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

12 ‘‘(1) HISPANIC-SERVING INSTITUTION.—The 

13 term ‘Hispanic-serving institution’ has the meaning 

14 given the term in section 502(a) of the Higher Edu15 cation Act of 1965 (20 U.S.C. 1101a(a)). 

16 ‘‘(2) HISTORICALLY BLACK COLLEGE OR UNI17 VERSITY.—The term ‘historically Black college or 

18 university’ has the meaning given the term ‘part B 

19 institution’ in section 322 of the Higher Education 

20 Act of 1965 (20 U.S.C. 1061). 

21 ‘‘(3) NATIONAL LABORATORY.—The term ‘Na22 tional Laboratory’ has the meaning given the term 

23 in section 2 of the Energy Policy Act of 2005. 

24 ‘‘(4) SCIENCE FACILITY.—The term ‘science fa25 cility’ has the meaning given the term ‘single-pur-
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1 pose research facility’ in section 903 of the Energy 

2 Policy Act of 2005. 

3 ‘‘(5) TRIBAL COLLEGE.—The term ‘tribal col4 lege’ has the meaning given the term ‘tribally con5 trolled college or university’ in section 2(a) of the 

6 Tribally Controlled College Assistance Act of 1978 

7 (25 U.S.C. 1801(a)). 

8 ‘‘(b) EDUCATION PARTNERSHIP.—The Secretary 

9 shall require the director of each National Laboratory, and 

10 may require the head of any science facility, to increase 

11 the participation of historically Black colleges or univer12 sities, Hispanic-serving institutions, or tribal colleges in 

13 any activity that increases the capacity of the historically 

14 Black colleges or universities, Hispanic-serving institu15 tions, or tribal colleges to train personnel in science or 

16 engineering. 

17 ‘‘(c) ACTIVITIES.—An activity described in subsection 

18 (b) includes— 

19 ‘‘(1) collaborative research; 

20 ‘‘(2) equipment transfer; 

21 ‘‘(3) training activities carried out at a National 

22 Laboratory or science facility; and 

23 ‘‘(4) mentoring activities carried out at a Na24 tional Laboratory or science facility. 
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1 ‘‘(d) REPORT.—Not later than 2 years after the date 

2 of enactment of this subsection, the Secretary shall submit 

3 to Congress a report describing the activities carried out 

4 under this section.’’. 

5 SEC. 1107. NATIONAL POWER PLANT OPERATIONS TECH6 NOLOGY AND EDUCATION CENTER. 

7 (a) ESTABLISHMENT.—The Secretary shall support 

8 the establishment of a National Power Plant Operations 

9 Technology and Education Center (referred to in this sec10 tion as the ‘‘Center’’), to address the need for training 

11 and educating certified operators for electric power gen12 eration plants. 

13 (b) LOCATION OF CENTER.—The Secretary shall 

14 support the establishment of the Center at an institution 

15 of higher education that has— 

16 (1) expertise in power plant technology and op17 eration; and 

18 (2) the ability to provide onsite and Internet19 based training. 

20 (c) TRAINING AND CONTINUING EDUCATION.— 

21 (1) IN GENERAL.—The Center shall provide 

22 training and continuing education relating to electric 

23 power generation plant technologies and operations. 
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1 (2) LOCATION.—The Center shall carry out 

2 training and education activities under paragraph 

3 (1)— 

4 (A) at the Center; and 

5 (B) through Internet-based information 

6 technologies that allow for learning at a remote 

7 site. 

8 TITLE XII—ELECTRICITY 

9 SEC. 1201. SHORT TITLE. 

10 This title may be cited as the ‘‘Electricity Moderniza11 tion Act of 2005’’. 

12 Subtitle A—Reliability Standards 

13 SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 

14 (a) IN GENERAL.—Part II of the Federal Power Act 

15 (16 U.S.C 824 et seq.) is amended by adding at the end 

16 the following: 

17 ‘‘SEC. 215. ELECTRIC RELIABILITY. 

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

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

20 ‘‘(i) facilities and control systems necessary 

21 for operating an interconnected electric energy 

22 transmission network (or any portion of such a 

23 network); and 
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1 ‘‘(ii) electric energy from generation facili2 ties needed to maintain transmission system re3 liability. 

4 ‘‘(B) The term ‘bulk-power system’ does not in5 clude facilities used in the local distribution of elec6 tric energy. 

7 ‘‘(2) The terms ‘Electric Reliability Organiza8 tion’ and ‘ERO’ mean the organization certified by 

9 the Commission under subsection (c) the purpose of 

10 which is to establish and enforce reliability stand11 ards for the bulk-power system, subject to review by 

12 the Commission. 

13 ‘‘(3)(A) The term ‘reliability standard’ means a 

14 requirement, approved by the Commission under this 

15 section, to provide for reliable operation of the bulk16 power system. 

17 ‘‘(B) The term ‘reliability standard’ includes re18 quirements for the operation of existing bulk-power 

19 system components and the design of planned addi20 tions or modifications to those components to the ex21 tent necessary to provide for reliable operation of the 

22 bulk-power system, except that the term does not in23 clude any requirement to enlarge those components 

24 or to construct new transmission capacity or genera25 tion capacity. 
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1 ‘‘(4) The term ‘reliable operation’ means oper2 ating the components of the bulk-power system with3 in equipment and electric system thermal, voltage, 

4 and stability limits so that instability, uncontrolled 

5 separation, or cascading failures of the system will 

6 not occur as a result of a sudden disturbance or un7 anticipated failure of system components. 

8 ‘‘(5) The term ‘interconnection’ means a geo9 graphic area in which the operation of bulk-power 

10 system components is synchronized such that the 

11 failure of 1 or more of the components may ad12 versely affect the ability of the operators of other 

13 components within the system to maintain reliable 

14 operation of the portion of the system within their 

15 control. 

16 ‘‘(6) The term ‘regional entity’ means an entity 

17 having enforcement authority pursuant to subsection 

18 (e)(4). 

19 ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 

20 Commission shall have jurisdiction, within the United 

21 States, over the ERO certified by the Commission under 

22 subsection (c), any regional entities, and all users, owners 

23 and operators of the bulk-power system (including the en24 tities described in section 201(f)), for purposes of approv-
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1 ing reliability standards established under this section and 

2 enforcing compliance with this section. 

3 ‘‘(2) All users, owners, and operators of the bulk4 power system shall comply with reliability standards that 

5 take effect under this section. 

6 ‘‘(3) The Commission shall issue a final rule to imple7 ment the requirements of this section not later than 180 

8 days after the date of enactment of this section. 

9 ‘‘(c) CERTIFICATION.—(1) Following the issuance of 

10 a Commission rule under subsection (b)(3), any person 

11 may submit an application to the Commission for certifi12 cation as the Electric Reliability Organization. 

13 ‘‘(2) The Commission may certify 1 such ERO if the 

14 Commission determines that the ERO— 

15 ‘‘(A) has the ability to develop and enforce, sub16 ject to subsection (e)(2), reliability standards that 

17 provide for an adequate level of reliability of the 

18 bulk-power system; and 

19 ‘‘(B) has established rules that— 

20 ‘‘(i) ensure the independence of the ERO 

21 from the users and owners and operators of the 

22 bulk-power system, while ensuring fair stake23 holder representation in the selection of the di24 rectors of the ERO and balanced decision-
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1 making in any ERO committee or subordinate 

2 organizational structure; 

3 ‘‘(ii) allocate equitably reasonable dues, 

4 fees, and other charges among end users for all 

5 activities under this section; 

6 ‘‘(iii) provide fair and impartial procedures 

7 for enforcement of reliability standards through 

8 the imposition of penalties in accordance with 

9 subsection (e) (including limitations on activi10 ties, functions, or operations, or other appro11 priate sanctions); 

12 ‘‘(iv) provide for reasonable notice and op13 portunity for public comment, due process, 

14 openness, and balance of interests in developing 

15 reliability standards and otherwise exercising 

16 the duties of the ERO; and 

17 ‘‘(v) provide for taking, after certification, 

18 appropriate steps to gain recognition in Canada 

19 and Mexico. 

20 ‘‘(d) RELIABILITY STANDARDS.—(1) The ERO shall 

21 file each reliability standard or modification to a reliability 

22 standard that the ERO proposes to be made effective 

23 under this section with the Commission. 

24 ‘‘(2)(A) The Commission may approve, by rule or 

25 order, a proposed reliability standard or modification to 
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1 a reliability standard if the Commission determines that 

2 the standard is just, reasonable, not unduly discriminatory 

3 or preferential, and in the public interest. 

4 ‘‘(B) The Commission— 

5 ‘‘(i) shall give due weight to the technical exper6 tise of the ERO with respect to the content of a pro7 posed standard or modification to a reliability stand8 ard and to the technical expertise of a regional enti9 ty organized on an interconnection-wide basis with 

10 respect to a reliability standard to be applicable 

11 within that interconnection; but 

12 ‘‘(ii) shall not defer with respect to the effect of 

13 a standard on competition. 

14 ‘‘(C) A proposed standard or modification shall take 

15 effect on approval by the Commission. 

16 ‘‘(3) The ERO shall rebuttably presume that a pro17 posal from a regional entity organized on an interconnec18 tion-wide basis for a reliability standard or modification 

19 to a reliability standard to be applicable on an interconnec20 tion-wide basis is just, reasonable, not unduly discrimina21 tory or preferential, and in the public interest. 

22 ‘‘(4) The Commission shall remand to the ERO for 

23 further consideration a proposed reliability standard or a 

24 modification to a reliability standard that the Commission 

25 disapproves in whole or in part. 
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1 ‘‘(5) The Commission, on a motion of the Commis2 sion or on complaint, may order the ERO to submit to 

3 the Commission a proposed reliability standard or a modi4 fication to a reliability standard that addresses a specific 

5 matter if the Commission considers such a new or modi6 fied reliability standard appropriate to carry out this sec7 tion. 

8 ‘‘(6)(A) The final rule adopted under subsection 

9 (b)(2) shall include fair processes for the identification 

10 and timely resolution of any conflict between a reliability 

11 standard and any function, rule, order, tariff, rate sched12 ule, or agreement accepted, approved, or ordered by the 

13 Commission applicable to a transmission organization. 

14 ‘‘(B) The transmission organization shall continue to 

15 comply with such function, rule, order, tariff, rate sched16 ule or agreement accepted approved, or ordered by the 

17 Commission until— 

18 ‘‘(i) the Commission finds a conflict exists be19 tween a reliability standard and any such provision; 

20 ‘‘(ii) the Commission orders a change to the 

21 provision pursuant to section 206; and 

22 ‘‘(iii) the ordered change becomes effective 

23 under this part. 

24 ‘‘(C) If the Commission determines that a reliability 

25 standard needs to be changed as a result of such a con-
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1 flict, the Commission shall order the ERO to develop and 

2 file with the Commission a modified reliability standard 

3 under paragraph (4) or (5). 

4 ‘‘(e) ENFORCEMENT.—(1) Subject to paragraph (2), 

5 the ERO may impose a penalty on a user or owner or 

6 operator of the bulk-power system for a violation of a reli7 ability standard approved by the Commission under sub8 section (d) if the ERO, after notice and an opportunity 

9 for a hearing— 

10 ‘‘(A) finds that the user or owner or operator 

11 has violated a reliability standard approved by the 

12 Commission under subsection (d); and 

13 ‘‘(B) files notice and the record of the pro14 ceeding with the Commission. 

15 ‘‘(2)(A) A penalty imposed under paragraph (1) may 

16 take effect not earlier than the day that is 31 days after 

17 the date on which the ERO files with the Commission no18 tice of the penalty and the record of proceedings. 

19 ‘‘(B) The penalty shall be subject to review by the 

20 Commission on— 

21 ‘‘(i) a motion by the Commission; or 

22 ‘‘(ii) application by the user, owner or operator 

23 that is the subject of the penalty filed not later than 

24 30 days after the date on which the notice is filed 

25 with the Commission. 
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1 ‘‘(C) Application to the Commission for review, or the 

2 initiation of review by the Commission on a motion of the 

3 Commission, shall not operate as a stay of the penalty un4 less the Commission orders otherwise on a motion of the 

5 Commission or on application by the user, owner or oper6 ator that is the subject of the penalty. 

7 ‘‘(D) In any proceeding to review a penalty imposed 

8 under paragraph (1), the Commission, after notice and op9 portunity for hearing (which hearing may consist solely 

10 of the record before the ERO and opportunity for the 

11 presentation of supporting reasons to affirm, modify, or 

12 set aside the penalty), shall by order— 

13 ‘‘(i) affirm, set aside, reinstate, or modify the 

14 penalty; and 

15 ‘‘(ii) if appropriate, remand to the ERO for fur16 ther proceedings. 

17 ‘‘(E) The Commission shall implement expedited pro18 cedures for the hearings described in subparagraph (D). 

19 ‘‘(3) On a motion of the Commission or on complaint, 

20 the Commission may order compliance with a reliability 

21 standard and may impose a penalty against a user or 

22 owner or operator of the bulk-power system if the Com23 mission finds, after notice and opportunity for a hearing, 

24 that the user or owner or operator of the bulk-power sys25 tem has engaged or is about to engage in any act or prac-
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1 tice that constitutes or will constitute a violation of a reli2 ability standard. 

3 ‘‘(4)(A) The Commission shall issue regulations au4 thorizing the ERO to enter into an agreement to delegate 

5 authority to a regional entity for the purpose of proposing 

6 reliability standards to the ERO and enforcing reliability 

7 standards under paragraph (1) if— 

8 ‘‘(i) the regional entity is governed by— 

9 ‘‘(I) an independent board; 

10 ‘‘(II) a balanced stakeholder board; or 

11 ‘‘(III) a combination independent and bal12 anced stakeholder board; 

13 ‘‘(ii) the regional entity otherwise meets the re14 quirements of paragraphs (1) and (2) of subsection 

15 (c); and 

16 ‘‘(iii) the agreement promotes effective and effi17 cient administration of bulk-power system reliability. 

18 ‘‘(B) The Commission may modify a delegation under 

19 this paragraph. 

20 ‘‘(C) The ERO and the Commission shall rebuttably 

21 presume that a proposal for delegation to a regional entity 

22 organized on an interconnection-wide basis promotes effec23 tive and efficient administration of bulk-power system reli24 ability and should be approved. 
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1 ‘‘(D) The regulation issued under this paragraph may 

2 provide that the Commission may assign the authority of 

3 the ERO to enforce reliability standards under paragraph 

4 (1) directly to a regional entity in accordance with this 

5 paragraph. 

6 ‘‘(5) The Commission may take such action as is nec7 essary or appropriate against the ERO or a regional entity 

8 to ensure compliance with a reliability standard or any 

9 Commission order affecting the ERO or a regional entity. 

10 ‘‘(6) Any penalty imposed under this section shall— 

11 ‘‘(A) bear a reasonable relation to the serious12 ness of the violation; and 

13 ‘‘(B) take into consideration the efforts of the 

14 user, owner, or operator to remedy the violation in 

15 a timely manner. 

16 ‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA17 TION RULES.—(1) The Electric Reliability Organization 

18 shall file with the Commission for approval any proposed 

19 rule or proposed rule change, accompanied by an expla20 nation of the basis and purpose of the rule and proposed 

21 rule change. 

22 ‘‘(2) The Commission, upon a motion of the Commis23 sion or upon complaint, may propose a change to the rules 

24 of the ERO. 
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1 ‘‘(3) A proposed rule or proposed rule change shall 

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

3 and opportunity for comment, that the change is just, rea4 sonable, and not unduly discriminatory or preferential, is 

5 in the public interest, and meets the requirements of sub6 section (c). 

7 ‘‘(g) RELIABILITY REPORTS.—The ERO shall con8 duct periodic assessments of the reliability and adequacy 

9 of the bulk-power system in North America. 

10 ‘‘(h) COORDINATION WITH CANADA AND MEXICO.— 

11 The President is urged to negotiate international agree12 ments with the governments of Canada and Mexico to pro13 vide for effective compliance with reliability standards and 

14 the effectiveness of the ERO in the United States and 

15 Canada or Mexico. 

16 ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO may de17 velop and enforce compliance with reliability standards for 

18 only the bulk-power system. 

19 ‘‘(2) Nothing in this section authorizes the ERO or 

20 the Commission to order the construction of additional 

21 generation or transmission capacity or to set and enforce 

22 compliance with standards for adequacy or safety of elec23 tric facilities or services. 

24 ‘‘(3) Nothing in this section preempts any authority 

25 of any State to take action to ensure the safety, adequacy, 
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1 and reliability of electric service within that State, as long 

2 as the action is not inconsistent with any reliability stand3 ard. 

4 ‘‘(4) Not later than 90 days after the date of applica5 tion of the Electric Reliability Organization or other af6 fected party, and after notice and opportunity for com7 ment, the Commission shall issue a final order deter8 mining whether a State action is inconsistent with a reli9 ability standard, taking into consideration any rec10 ommendation of the ERO. 

11 ‘‘(5) The Commission, after consultation with the 

12 ERO and the State taking action, may stay the effective13 ness of any State action, pending the issuance by the Com14 mission of a final order. 

15 ‘‘(j) REGIONAL ADVISORY BODIES.—(1) The Com16 mission shall establish a regional advisory body on the petition of at least 2 17 ⁄3 of the States within a region that have 

more than 1 18 ⁄2 of the electric load of the States served with19 in the region. 

20 ‘‘(2) A regional advisory body— 

21 ‘‘(A) shall be composed of 1 member from each 

22 participating State in the region, appointed by the 

23 Governor of the State; and 

24 ‘‘(B) may include representatives of agencies, 

25 States, and provinces outside the United States. 
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1 ‘‘(3) A regional advisory body may provide advice to 

2 the Electric Reliability Organization, a regional entity, or 

3 the Commission regarding— 

4 ‘‘(A) the governance of an existing or proposed 

5 regional entity within the same region; 

6 ‘‘(B) whether a standard proposed to apply 

7 within the region is just, reasonable, not unduly dis8 criminatory or preferential, and in the public inter9 est; 

10 ‘‘(C) whether fees proposed to be assessed with11 in the region are just, reasonable, not unduly dis12 criminatory or preferential, and in the public inter13 est; and 

14 ‘‘(D) any other responsibilities requested by the 

15 Commission. 

16 ‘‘(4) The Commission may give deference to the ad17 vice of a regional advisory body if that body is organized 

18 on an interconnection-wide basis. 

19 ‘‘(k) ALASKA AND HAWAII.—This section does not 

20 apply to Alaska or Hawaii.’’. 

21 (b) STATUS OF ERO.—The Electric Reliability Orga22 nization certified by the Commission under section 215(c) 

23 of the Federal Power Act (as added by subsection (a)) 

24 and any regional entity delegated enforcement authority 

25 pursuant to section 215(e)(4) of that Act (as so added) 
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1 are not departments, agencies, or instrumentalities of the 

2 Federal Government. 

3 Subtitle B—Transmission 

4 Infrastructure Modernization 

5 SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANS6 MISSION FACILITIES. 

7 (a) IN GENERAL.—Part II of the Federal Power Act 

8 (16 U.S.C. 824 et seq.) (as amended by section 1211(a)) 

9 is amended by adding at the end the following: 

10 ‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANS11 MISSION FACILITIES. 

12 ‘‘(a) DESIGNATION OF NATIONAL INTEREST ELEC13 TRIC TRANSMISSION CORRIDORS.—(1) Not later than 1 

14 year after the date of enactment of this section and every 

15 3 years thereafter, the Secretary of Energy (referred to 

16 in this section as the ‘Secretary’), in consultation with af17 fected States, shall conduct a study of electric trans18 mission congestion. 

19 ‘‘(2) After considering alternatives and recommenda20 tions from interested parties (including an opportunity for 

21 comment from affected States), the Secretary shall issue 

22 a report, based on the study, which may designate any 

23 geographic area experiencing electric energy transmission 

24 capacity constraints or congestion that adversely affects 
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1 consumers as a national interest electric transmission cor2 ridor. 

3 ‘‘(3) The Secretary shall conduct the study and issue 

4 the report in consultation with any appropriate regional 

5 entity referred to in section 215. 

6 ‘‘(4) In determining whether to designate a national 

7 interest electric transmission corridor under paragraph 

8 (2), the Secretary may consider whether— 

9 ‘‘(A) the economic vitality and development of 

10 the corridor, or the end markets served by the cor11 ridor, may be constrained by lack of adequate or 

12 reasonably priced electricity; 

13 ‘‘(B)(i) economic growth in the corridor, or the 

14 end markets served by the corridor, may be jeopard15 ized by reliance on limited sources of energy; and 

16 ‘‘(ii) a diversification of supply is warranted; 

17 ‘‘(C) the energy independence of the United 

18 States would be served by the designation; 

19 ‘‘(D) the designation would be in the interest of 

20 national energy policy; and 

21 ‘‘(E) the designation would enhance national 

22 defense and homeland security. 

23 ‘‘(b) CONSTRUCTION PERMIT.—Except as provided 

24 in subsection (i), the Commission may, after notice and 

25 an opportunity for hearing, issue 1 or more permits for 
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1 the construction or modification of electric transmission 

2 facilities in a national interest electric transmission cor3 ridor designated by the Secretary under subsection (a) if 

4 the Commission finds that— 

5 ‘‘(1)(A) a State in which the transmission fa6 cilities are to be constructed or modified does not 

7 have authority to— 

8 ‘‘(i) approve the siting of the facilities; or 

9 ‘‘(ii) consider the interstate benefits ex10 pected to be achieved by the proposed construc11 tion or modification of transmission facilities in 

12 the State; 

13 ‘‘(B) the applicant for a permit is a transmit14 ting utility under this Act but does not qualify to 

15 apply for a permit or siting approval for the pro16 posed project in a State because the applicant does 

17 not serve end-use customers in the State; or 

18 ‘‘(C) a State commission or other entity that 

19 has authority to approve the siting of the facilities 

20 has— 

21 ‘‘(i) withheld approval for more than 1 

22 year after the filing of an application seeking 

23 approval pursuant to applicable law or 1 year 

24 after the designation of the relevant national in-
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1 terest electric transmission corridor, whichever 

2 is later; or 

3 ‘‘(ii) conditioned its approval in such a 

4 manner that the proposed construction or modi5 fication will not significantly reduce trans6 mission congestion in interstate commerce or is 

7 not economically feasible; 

8 ‘‘(2) the facilities to be authorized by the per9 mit will be used for the transmission of electric en10 ergy in interstate commerce; 

11 ‘‘(3) the proposed construction or modification 

12 is consistent with the public interest; 

13 ‘‘(4) the proposed construction or modification 

14 will significantly reduce transmission congestion in 

15 interstate commerce and protects or benefits con16 sumers; 

17 ‘‘(5) the proposed construction or modification 

18 is consistent with sound national energy policy and 

19 will enhance energy independence; and 

20 ‘‘(6) the proposed modification will maximize, 

21 to the extent reasonable and economical, the trans22 mission capabilities of existing towers or structures 

23 so as to minimize the environmental and visual im24 pact of the proposed modification. 
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1 ‘‘(c) PERMIT APPLICATIONS.—(1) Permit applica2 tions under subsection (b) shall be made in writing to the 

3 Commission. 

4 ‘‘(2) The Commission shall issue rules specifying— 

5 ‘‘(A) the form of the application; 

6 ‘‘(B) the information to be contained in the ap7 plication; and 

8 ‘‘(C) the manner of service of notice of the per9 mit application on interested persons. 

10 ‘‘(d) COMMENTS.—In any proceeding before the 

11 Commission under subsection (b), the Commission shall 

12 afford each State in which a transmission facility covered 

13 by the permit is or will be located, each affected Federal 

14 agency and Indian tribe, private property owners, and 

15 other interested persons, a reasonable opportunity to 

16 present their views and recommendations with respect to 

17 the need for and impact of a facility covered by the permit. 

18 ‘‘(e) RIGHTS-OF-WAY.—(1) In the case of a permit 

19 under subsection (b) for electric transmission facilities to 

20 be located on property other than property owned by the 

21 United States or a State, if the permit holder cannot ac22 quire by contract, or is unable to agree with the owner 

23 of the property to the compensation to be paid for, the 

24 necessary right-of-way to construct or modify the trans25 mission facilities, the permit holder may acquire the right- 
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1 of-way by the exercise of the right of eminent domain in 

2 the district court of the United States for the district in 

3 which the property concerned is located, or in the appro4 priate court of the State in which the property is located. 

5 ‘‘(2) Any right-of-way acquired under paragraph (1) 

6 shall be used exclusively for the construction or modifica7 tion of electric transmission facilities within a reasonable 

8 period of time after the acquisition. 

9 ‘‘(3) The practice and procedure in any action or pro10 ceeding under this subsection in the district court of the 

11 United States shall conform as nearly as practicable to 

12 the practice and procedure in a similar action or pro13 ceeding in the courts of the State in which the property 

14 is located. 

15 ‘‘(f) COMPENSATION.—(1) Any right-of-way acquired 

16 pursuant to subsection (e) shall be considered a taking of 

17 private property for which just compensation is due. 

18 ‘‘(2) Just compensation shall be an amount equal to 

19 the fair market value (including applicable severance dam20 ages) of the property taken on the date of the exercise 

21 of eminent domain authority. 

22 ‘‘(g) STATE LAW.—Nothing in this section precludes 

23 any person from constructing or modifying any trans24 mission facility in accordance with State law. 
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1 ‘‘(h) COORDINATION OF FEDERAL AUTHORIZATIONS

2 FOR TRANSMISSION FACILITIES.—(1) In this subsection: 

3 ‘‘(A) The term ‘Federal authorization’ means 

4 any authorization required under Federal law in 

5 order to site a transmission facility. 

6 ‘‘(B) The term ‘Federal authorization’ includes 

7 such permits, special use authorizations, certifi8 cations, opinions, or other approvals as may be re9 quired under Federal law in order to site a trans10 mission facility. 

11 ‘‘(2) The Department of Energy shall act as the lead 

12 agency for purposes of coordinating all applicable Federal 

13 authorizations and related environmental reviews of the 

14 facility. 

15 ‘‘(3) To the maximum extent practicable under appli16 cable Federal law, the Secretary shall coordinate the Fed17 eral authorization and review process under this sub18 section with any Indian tribes, multistate entities, and 

19 State agencies that are responsible for conducting any sep20 arate permitting and environmental reviews of the facility, 

21 to ensure timely and efficient review and permit decisions. 

22 ‘‘(4)(A) As head of the lead agency, the Secretary, 

23 in consultation with agencies responsible for Federal au24 thorizations and, as appropriate, with Indian tribes, 

25 multistate entities, and State agencies that are willing to 
624 

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1 coordinate their own separate permitting and environ2 mental reviews with the Federal authorization and envi3 ronmental reviews, shall establish prompt and binding in4 termediate milestones and ultimate deadlines for the re5 view of, and Federal authorization decisions relating to, 

6 the proposed facility. 

7 ‘‘(B) The Secretary shall ensure that, once an appli8 cation has been submitted with such data as the Secretary 

9 considers necessary, all permit decisions and related envi10 ronmental reviews under all applicable Federal laws shall 

11 be completed— 

12 ‘‘(i) within 1 year; or 

13 ‘‘(ii) if a requirement of another provision of 

14 Federal law does not permit compliance with clause 

15 (i), as soon thereafter as is practicable. 

16 ‘‘(C) The Secretary shall provide an expeditious pre17 application mechanism for prospective applicants to confer 

18 with the agencies involved to have each such agency deter19 mine and communicate to the prospective applicant not 

20 later than 60 days after the prospective applicant submits 

21 a request for such information concerning— 

22 ‘‘(i) the likelihood of approval for a potential fa23 cility; and 

24 ‘‘(ii) key issues of concern to the agencies and 

25 public. 
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1 ‘‘(5)(A) As lead agency head, the Secretary, in con2 sultation with the affected agencies, shall prepare a single 

3 environmental review document, which shall be used as the 

4 basis for all decisions on the proposed project under Fed5 eral law. 

6 ‘‘(B) The Secretary and the heads of other agencies 

7 shall streamline the review and permitting of transmission 

8 within corridors designated under section 503 of the Fed9 eral Land Policy and Management Act (43 U.S.C. 1763) 

10 by fully taking into account prior analyses and decisions 

11 relating to the corridors. 

12 ‘‘(C) The document shall include consideration by the 

13 relevant agencies of any applicable criteria or other mat14 ters as required under applicable law. 

15 ‘‘(6)(A) If any agency has denied a Federal author16 ization required for a transmission facility, or has failed 

17 to act by the deadline established by the Secretary pursu18 ant to this section for deciding whether to issue the au19 thorization, the applicant or any State in which the facility 

20 would be located may file an appeal with the President, 

21 who shall, in consultation with the affected agency, review 

22 the denial or failure to take action on the pending applica23 tion. 

24 ‘‘(B) Based on the overall record and in consultation 

25 with the affected agency, the President may— 
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1 ‘‘(i) issue the necessary authorization with any 

2 appropriate conditions; or 

3 ‘‘(ii) deny the application. 

4 ‘‘(C) The President shall issue a decision not later 

5 than 90 days after the date of the filing of the appeal. 

6 ‘‘(D) In making a decision under this paragraph, the 

7 President shall comply with applicable requirements of 

8 Federal law, including any requirements of— 

9 ‘‘(i) the National Forest Management Act of 

10 1976 (16 U.S.C. 472a et seq.); 

11 ‘‘(ii) the Endangered Species Act of 1973 (16 

12 U.S.C. 1531 et seq.); 

13 ‘‘(iii) the Federal Water Pollution Control Act 

14 (33 U.S.C. 1251 et seq.); 

15 ‘‘(iv) the National Environmental Policy Act of 

16 1969 (42 U.S.C. 4321 et seq.); and 

17 ‘‘(v) the Federal Land Policy and Management 

18 Act of 1976 (43 U.S.C. 1701 et seq.). 

19 ‘‘(7)(A) Not later than 18 months after the date of 

20 enactment of this section, the Secretary shall issue any 

21 regulations necessary to implement this subsection. 

22 ‘‘(B)(i) Not later than 1 year after the date of enact23 ment of this section, the Secretary and the heads of all 

24 Federal agencies with authority to issue Federal author25 izations shall enter into a memorandum of understanding 
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1 to ensure the timely and coordinated review and permit2 ting of electricity transmission facilities. 

3 ‘‘(ii) Interested Indian tribes, multistate entities, and 

4 State agencies may enter the memorandum of under5 standing. 

6 ‘‘(C) The head of each Federal agency with authority 

7 to issue a Federal authorization shall designate a senior 

8 official responsible for, and dedicate sufficient other staff 

9 and resources to ensure, full implementation of the regula10 tions and memorandum required under this paragraph. 

11 ‘‘(8)(A) Each Federal land use authorization for an 

12 electricity transmission facility shall be issued— 

13 ‘‘(i) for a duration, as determined by the Sec14 retary, commensurate with the anticipated use of the 

15 facility; and 

16 ‘‘(ii) with appropriate authority to manage the 

17 right-of-way for reliability and environmental protec18 tion. 

19 ‘‘(B) On the expiration of the authorization (includ20 ing an authorization issued before the date of enactment 

21 of this section), the authorization shall be reviewed for re22 newal taking fully into account reliance on such electricity 

23 infrastructure, recognizing the importance of the author24 ization for public health, safety, and economic welfare and 

25 as a legitimate use of Federal land. 
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1 ‘‘(9) In exercising the responsibilities under this sec2 tion, the Secretary shall consult regularly with— 

3 ‘‘(A) the Federal Energy Regulatory Commis4 sion; 

5 ‘‘(B) electric reliability organizations (including 

6 related regional entities) approved by the Commis7 sion; and 

8 ‘‘(C) Transmission Organizations approved by 

9 the Commission. 

10 ‘‘(i) INTERSTATE COMPACTS.—(1) The consent of 

11 Congress is given for 3 or more contiguous States to enter 

12 into an interstate compact, subject to approval by Con13 gress, establishing regional transmission siting agencies 

14 to— 

15 ‘‘(A) facilitate siting of future electric energy 

16 transmission facilities within those States; and 

17 ‘‘(B) carry out the electric energy transmission 

18 siting responsibilities of those States. 

19 ‘‘(2) The Secretary may provide technical assistance 

20 to regional transmission siting agencies established under 

21 this subsection. 

22 ‘‘(3) The regional transmission siting agencies shall 

23 have the authority to review, certify, and permit siting of 

24 transmission facilities, including facilities in national in-
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1 terest electric transmission corridors (other than facilities 

2 on property owned by the United States). 

3 ‘‘(4) The Commission shall have no authority to issue 

4 a permit for the construction or modification of an electric 

5 transmission facility within a State that is a party to a 

6 compact, unless the members of the compact are in dis7 agreement and the Secretary makes, after notice and an 

8 opportunity for a hearing, the finding described in sub9 section (b)(1)(C). 

10 ‘‘(j) RELATIONSHIP TO OTHER LAWS.—(1) Except 

11 as specifically provided, nothing in this section affects any 

12 requirement of an environmental law of the United States, 

13 including the National Environmental Policy Act of 1969 

14 (42 U.S.C. 4321 et seq.). 

15 ‘‘(2) Subsection (h)(6) shall not apply to any unit of 

16 the National Park System, the National Wildlife Refuge 

17 System, the National Wild and Scenic Rivers System, the 

18 National Trails System, the National Wilderness Preser19 vation System, or a National Monument.’’. 

20 (b) REPORTS TO CONGRESS ON CORRIDORS AND

21 RIGHTS OF WAY ON FEDERAL LANDS.—Not later than 

22 90 days after the date of enactment of this Act, the Sec23 retary of the Interior, the Secretary, the Secretary of Agri24 culture, and the Chairman of the Council on Environ-
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1 mental Quality shall submit to Congress a joint report 

2 identifying— 

3 (1)(A) all existing designated transmission and 

4 distribution corridors on Federal land and the status 

5 of work related to proposed transmission and dis6 tribution corridor designations under title V of the 

7 Federal Land Policy and Management Act of 1976 

8 (43 U.S.C. 1761 et seq.); 

9 (B) the schedule for completing the work; 

10 (C) any impediments to completing the work; 

11 and 

12 (D) steps that Congress could take to expedite 

13 the process; 

14 (2)(A) the number of pending applications to 

15 locate transmission facilities on Federal land; 

16 (B) key information relating to each such facil17 ity; 

18 (C) how long each application has been pend19 ing; 

20 (D) the schedule for issuing a timely decision as 

21 to each facility; and 

22 (E) progress in incorporating existing and new 

23 such rights-of-way into relevant land use and re24 source management plans or the equivalent of those 

25 plans; and 
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•S 10 PCS 

1 (3)(A) the number of existing transmission and 

2 distribution rights-of-way on Federal land that will 

3 come up for renewal within the following 5-, 10-, 

4 and 15-year periods; and 

5 (B) a description of how the Secretaries plan to 

6 manage the renewals. 

7 SEC. 1222. THIRD-PARTY FINANCE. 

8 (a) EXISTING FACILITIES.—The Secretary, acting 

9 through the Administrator of the Western Area Power Ad10 ministration (referred to in this section as ‘‘WAPA’’) or 

11 the Administrator of the Southwestern Power Administra12 tion (referred to in this section as ‘‘SWPA’’), or both, may 

13 carry out a project to design, develop, construct, operate, 

14 maintain, or own, or participate with other entities in de15 signing, developing, constructing, operating, maintaining, 

16 or owning, an electric power transmission facility and re17 lated facilities needed to upgrade existing transmission fa18 cilities owned by the SWPA or WAPA if the Secretary, 

19 in consultation with the applicable Administrator, deter20 mines that the proposed project— 

21 (1)(A) is located in a national interest electric 

22 transmission corridor designated under section 

23 216(a) of the Federal Power Act and will reduce 

24 congestion of electric transmission in interstate com25 merce; or 
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1 (B) is necessary to accommodate an actual or 

2 projected increase in demand for electric trans3 mission capacity; 

4 (2) is consistent with— 

5 (A) transmission needs identified, in a 

6 transmission expansion plan or otherwise, by 

7 the appropriate Transmission Organization (as 

8 defined in section 3 of the Federal Power Act 

9 (16 U.S.C. 796)), if any, or approved regional 

10 reliability organization; and 

11 (B) efficient and reliable operation of the 

12 transmission grid; and 

13 (3) would be operated in conformance with pru14 dent utility practice. 

15 (b) NEW FACILITIES.—The Secretary, acting 

16 through the WAPA or SWPA, or both, may carry out a 

17 project to design, develop, construct, operate, maintain, or 

18 own, or participate with other entities in designing, devel19 oping, constructing, operating, maintaining, or owning, a 

20 new electric power transmission facility and related facili21 ties located within any State in which the WAPA or 

22 SWPA operates if the Secretary, in consultation with the 

23 applicable Administrator, determines that the proposed 

24 project— 
633 

•S 10 PCS 

1 (1)(A) is located in a national interest electric 

2 transmission corridor designated under section 

3 216(a) of the Federal Power Act and will reduce 

4 congestion of electric transmission in interstate com5 merce; or 

6 (B) is necessary to accommodate an actual or 

7 projected increase in demand for electric trans8 mission capacity; 

9 (2) is consistent with— 

10 (A) transmission needs identified, in a 

11 transmission expansion plan or otherwise, by 

12 the appropriate Transmission Organization, if 

13 any, or approved regional reliability organiza14 tion; and 

15 (B) efficient and reliable operation of the 

16 transmission grid; 

17 (3) will be operated in conformance with pru18 dent utility practice; 

19 (4) will be operated by, or in conformance with 

20 the rules of, the appropriate— 

21 (A) Transmission Organization, if any; or 

22 (B) if such an organization does not exist, 

23 regional reliability organization; and 

24 (5) will not duplicate the functions of existing 

25 transmission facilities or proposed facilities that are 
634 

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1 the subject of ongoing or approved siting and related 

2 permitting proceedings. 

3 (c) OTHER FUNDS.— 

4 (1) IN GENERAL.—In carrying out a project 

5 under subsection (a) or (b), the Secretary may ac6 cept and use funds contributed by another entity for 

7 the purpose of carrying out the project. 

8 (2) AVAILABILITY.—The contributed funds 

9 shall be available for expenditure for the purpose of 

10 carrying out the project— 

11 (A) without fiscal year limitation; and 

12 (B) as if the funds had been appropriated 

13 specifically for the project. 

14 (3) ALLOCATION OF COSTS.—In carrying out a 

15 project under subsection (a) or (b), any costs of the 

16 project not paid for by contributions from another 

17 entity shall be— 

18 (A) collected through rates charged to cus19 tomers using the new transmission capability 

20 provided by the project; and 

21 (B) allocated equitably among these 

22 project beneficiaries using the new transmission 

23 capability. 

24 (d) RELATIONSHIP TO OTHER LAWS.—Nothing in 

25 this section affects any requirement of— 
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•S 10 PCS 

1 (1) any Federal environmental law, including 

2 the National Environmental Policy Act of 1969 (42 

3 U.S.C. 4321 et seq.); 

4 (2) any Federal or State law relating to the 

5 siting of energy facilities; or 

6 (3) any authorizing law in effect on the date of 

7 enactment of this Act. 

8 (e) SAVINGS CLAUSE.—Nothing in this section con9 strains or restricts an Administrator in the use of other 

10 authority delegated to the Administrator of the WAPA or 

11 SWPA. 

12 (f) SECRETARIAL DETERMINATIONS.—Any deter13 mination made pursuant to subsection (a) or (b) shall be 

14 based on findings by the Secretary using the best available 

15 data. 

16 (g) MAXIMUM FUNDING AMOUNT.—The Secretary 

17 shall not accept and use more than $100,000,000 under 

18 subsection (c)(1) for the period of fiscal years 2006 

19 through 2013. 

20 SEC. 1223. ADVANCED TRANSMISSION TECHNOLOGIES. 

21 (a) DEFINITION OF ADVANCED TRANSMISSION

22 TECHNOLOGY.—In this section, the term ‘‘advanced 

23 transmission technology’’ means a technology that in24 creases the capacity, efficiency, or reliability of an existing 

25 or new transmission facility, including— 
636 

•S 10 PCS 

1 (1) high-temperature lines (including super2 conducting cables); 

3 (2) underground cables; 

4 (3) advanced conductor technology (including 

5 advanced composite conductors, high-temperature 

6 low-sag conductors, and fiber optic temperature 

7 sensing conductors); 

8 (4) high-capacity ceramic electric wire, connec9 tors, and insulators; 

10 (5) optimized transmission line configurations 

11 (including multiple phased transmission lines); 

12 (6) modular equipment; 

13 (7) wireless power transmission; 

14 (8) ultra-high voltage lines; 

15 (9) high-voltage DC technology; 

16 (10) flexible AC transmission systems; 

17 (11) energy storage devices (including pumped 

18 hydro, compressed air, superconducting magnetic en19 ergy storage, flywheels, and batteries); 

20 (12) controllable load; 

21 (13) distributed generation (including PV, fuel 

22 cells, and microturbines); 

23 (14) enhanced power device monitoring; 

24 (15) direct system state sensors; 

25 (16) fiber optic technologies; 
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•S 10 PCS 

1 (17) power electronics and related software (in2 cluding real time monitoring and analytical soft3 ware); 

4 (18) mobile transformers and mobile sub5 stations; and 

6 (19) any other technologies the Commission 

7 considers appropriate. 

8 (b) AUTHORITY.—In carrying out the Federal Power 

9 Act (16 U.S.C. 791a et seq.) and the Public Utility Regu10 latory Policies Act of 1978 (16 U.S.C. 2601 et seq.), the 

11 Commission shall encourage, as appropriate, the deploy12 ment of advanced transmission technologies. 

13 SEC. 1224. ADVANCED POWER SYSTEM TECHNOLOGY IN14 CENTIVE PROGRAM. 

15 (a) DEFINITIONS.—In this section: 

16 (1) QUALIFYING ADVANCED POWER SYSTEM

17 TECHNOLOGY FACILITY.—The term ‘‘qualifying ad18 vanced power system technology facility’’ means a 

19 facility using an advanced fuel cell, turbine, or hy20 brid power system or power storage system to gen21 erate or store electric energy. 

22 (2) QUALIFYING SECURITY AND ASSURED

23 POWER FACILITY.—The term ‘‘qualifying security 

24 and assured power facility’’ means a qualifying ad25 vanced power system technology facility determined 
638 

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1 by the Secretary, in consultation with the Secretary 

2 of Homeland Security, to be in critical need of se3 cure, reliable, rapidly available, high-quality power 

4 for critical governmental, industrial, or commercial 

5 applications. 

6 (b) PROGRAM.—The Secretary may establish an ad7 vanced power system technology incentive program to— 

8 (1) support the deployment of certain advanced 

9 power system technologies; and 

10 (2) improve and protect certain critical govern11 mental, industrial, and commercial processes. 

12 (c) INCENTIVE PAYMENTS.— 

13 (1) IN GENERAL.—Funds provided under this 

14 section shall be used by the Secretary to make incen15 tive payments to eligible owners or operators of ad16 vanced power system technologies to increase power 

17 generation through enhanced operational, economic, 

18 and environmental performance. 

19 (2) APPLICATION.—Payments under this sec20 tion may only be made on receipt by the Secretary 

21 of an incentive payment application establishing an 

22 applicant as— 

23 (A) a qualifying advanced power system 

24 technology facility; or 
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1 (B) a qualifying security and assured 

2 power facility. 

3 (3) PAYMENT RATES.—Subject to availability of 

4 funds— 

5 (A) a payment of 1.8 cents per kilowatt6 hour shall be paid to the owner or operator of 

7 a qualifying advanced power system technology 

8 facility under this section for electricity gen9 erated at the facility; and 

10 (B) an additional 0.7 cents per kilowatt11 hour shall be paid to the owner or operator of 

12 a qualifying security and assured power facility 

13 for electricity generated at the facility. 

14 (4) PAYMENT QUANTITY.—Any facility quali15 fying under this section shall be eligible for an in16 centive payment for up to, but not more than, the 

17 first 10,000,000 kilowatt-hours produced in any fis18 cal year. 

19 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 

20 authorized to be appropriated to the Secretary to carry 

21 out this section $10,000,000 for each of fiscal years 2006 

22 through 2012. 
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1 Subtitle C—Transmission 

2 Operation Improvements 

3 SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 

4 Part II of the Federal Power Act (16 U.S.C. 824 et 

5 seq.) is amended by inserting after section 211 (16 U.S.C. 

6 824j) the following: 

7 ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT8 TING UTILITIES. 

9 ‘‘(a) DEFINITION OF UNREGULATED TRANSMITTING

10 UTILITY.—In this section, the term ‘unregulated trans11 mitting utility’ means an entity that— 

12 ‘‘(1) owns or operates facilities used for the 

13 transmission of electric energy in interstate com14 merce; and 

15 ‘‘(2) is an entity described in section 201(f). 

16 ‘‘(b) TRANSMISSION OPERATION IMPROVEMENTS.— 

17 Subject to section 212(h), the Commission may, by rule 

18 or order, require an unregulated transmitting utility to 

19 provide transmission services— 

20 ‘‘(1) at rates that are comparable to those that 

21 the unregulated transmitting utility charges itself; 

22 and 

23 ‘‘(2) on terms and conditions (not relating to 

24 rates) that are comparable to those under which the 

25 unregulated transmitting utility provides trans-
641 

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1 mission services to itself and that are not unduly 

2 discriminatory or preferential. 

3 ‘‘(c) EXEMPTION.—The Commission shall exempt 

4 from any rule or order under this section any unregulated 

5 transmitting utility that— 

6 ‘‘(1) sells not more than 4,000,000 megawatt 

7 hours of electricity per year; 

8 ‘‘(2) does not own or operate any transmission 

9 facilities that are necessary for operating an inter10 connected transmission system (or any portion of the 

11 system); or 

12 ‘‘(3) meets other criteria the Commission deter13 mines to be in the public interest. 

14 ‘‘(d) LOCAL DISTRIBUTION FACILITIES.—The re15 quirements of subsection (b) shall not apply to facilities 

16 used in local distribution. 

17 ‘‘(e) EXEMPTION TERMINATION.—If the Commis18 sion, after an evidentiary hearing held on a complaint and 

19 after giving consideration to reliability standards estab20 lished under section 215, finds on the basis of a prepon21 derance of the evidence that any exemption granted pursu22 ant to subsection (c) unreasonably impairs the continued 

23 reliability of an interconnected transmission system, the 

24 Commission shall revoke the exemption granted to the 

25 transmitting utility. 
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1 ‘‘(f) APPLICATION TO UNREGULATED TRANSMITTING

2 UTILITIES.—The rate changing procedures applicable to 

3 public utilities under subsections (c) and (d) of section 205 

4 are applicable to unregulated transmitting utilities for 

5 purposes of this section. 

6 ‘‘(g) REMAND.—In exercising authority under sub7 section (b)(1), the Commission may remand transmission 

8 rates to an unregulated transmitting utility for review and 

9 revision if necessary to meet the requirements of sub10 section (b). 

11 ‘‘(h) OTHER REQUESTS.—The provision of trans12 mission services under subsection (b) does not preclude 

13 a request for transmission services under section 211. 

14 ‘‘(i) LIMITATION.—The Commission may not require 

15 a State or municipality to take action under this section 

16 that would violate a private activity bond rule for purposes 

17 of section 141 of the Internal Revenue Code of 1986. 

18 ‘‘(j) TRANSFER OF CONTROL OF TRANSMITTING FA19 CILITIES.—Nothing in this section authorizes the Commis20 sion to require an unregulated transmitting utility to 

21 transfer control or operational control of its transmitting 

22 facilities to a Transmission Organization that is des23 ignated to provide nondiscriminatory transmission ac24 cess.’’. 
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1 SEC. 1232. REGIONAL TRANSMISSION ORGANIZATIONS. 

2 Part II of the Federal Power Act (16 U.S.C. 824 et 

3 seq.) (as amended by section 1221(a)) is amended by add4 ing at the end the following: 

5 ‘‘SEC. 217. PROMOTION OF VOLUNTARY TRANSMISSION OR6 GANIZATIONS. 

7 ‘‘(a) IN GENERAL.—The Commission may encourage 

8 and may approve the voluntary formation of RTOs, ISOs, 

9 or other similar organizations approved by the Commis10 sion for the purposes of— 

11 ‘‘(1) promoting fair, open access to electric 

12 transmission service; 

13 ‘‘(2) facilitating wholesale competition; 

14 ‘‘(3) improving efficiencies in transmission grid 

15 management; 

16 ‘‘(4) promoting grid reliability; 

17 ‘‘(5) removing opportunities for unduly dis18 criminatory or preferential transmission practices; 

19 and 

20 ‘‘(6) providing for the efficient development of 

21 transmission infrastructure needed to meet the 

22 growing demands of competitive wholesale power 

23 markets. 

24 ‘‘(b) OPERATIONAL CONTROL.—No order issued 

25 under this Act shall be conditioned on or require a trans26 mitting utility to transfer operational control of jurisdic-
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1 tional facilities to a Transmission Organization approved 

2 by the Commission. 

3 ‘‘(c) ANNUAL AUDITS.—(1) Each Transmission Or4 ganization shall report to the Commission on a scheduled 

5 basis, as determined by the Commission, the means by 

6 which the Transmission Organization will ensure that the 

7 Transmission Organization will operate and perform the 

8 functions of the Transmission Organization in a cost effec9 tive manner that is also consistent with the obligations of 

10 the Transmission Organization under the Commission-ap11 proved tariffs and agreements of the Transmission Orga12 nization. 

13 ‘‘(2) The Commission shall annually audit the compli14 ance of the Transmission Organization with the filed plan 

15 and any additional Commission requirements concerning 

16 the performance, operations, and cost efficiencies of the 

17 Transmission Organization. 

18 ‘‘(3) The Commission shall establish appropriate ac19 counting procedures for recording costs to facilitate com20 parisons among Transmission Organizations and, to the 

21 extent practicable, among other transmitting utilities per22 forming similar functions.’’. 

23 SEC. 1233. FEDERAL UTILITY PARTICIPATION IN TRANS24 MISSION ORGANIZATIONS. 

25 (a) DEFINITIONS.—In this section— 
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1 (1) APPROPRIATE FEDERAL REGULATORY AU2 THORITY.—The term ‘‘appropriate Federal regu3 latory authority’’ means— 

4 (A) in the case of a Federal power mar5 keting agency, the Secretary, except that the 

6 Secretary may designate the Administrator of a 

7 Federal power marketing agency to act as the 

8 appropriate Federal regulatory authority with 

9 respect to the transmission system of the Fed10 eral power marketing agency; and 

11 (B) in the case of the Tennessee Valley 

12 Authority, the Board of Directors of the Ten13 nessee Valley Authority. 

14 (2) FEDERAL POWER MARKETING AGENCY.— 

15 The term ‘‘Federal power marketing agency’’ has 

16 the meaning given the term in section 3 of the Fed17 eral Power Act (16 U.S.C. 796). 

18 (3) FEDERAL UTILITY.—The term ‘‘Federal 

19 utility’’ means— 

20 (A) a Federal power marketing agency; or 

21 (B) the Tennessee Valley Authority. 

22 (4) TRANSMISSION ORGANIZATION.—The term 

23 ‘‘Transmission Organization’’ has the meaning given 

24 the term in section 3 of the Federal Power Act (16 

25 U.S.C. 796). 
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1 (5) TRANSMISSION SYSTEM.—The term ‘‘trans2 mission system’’ means an electric transmission fa3 cility owned, leased, or contracted for by the United 

4 States and operated by a Federal utility. 

5 (b) TRANSFER.—The appropriate Federal regulatory 

6 authority may enter into a contract, agreement, or other 

7 arrangement transferring control and use of all or part 

8 of the transmission system of a Federal utility to a Trans9 mission Organization. 

10 (c) CONTENTS.—The contract, agreement, or ar11 rangement shall include— 

12 (1) performance standards for operation and 

13 use of the transmission system that the head of the 

14 Federal utility determines are necessary or appro15 priate, including standards that ensure— 

16 (A) recovery of all of the costs and ex17 penses of the Federal utility related to the 

18 transmission facilities that are the subject of 

19 the contract, agreement, or other arrangement; 

20 (B) consistency with existing contracts and 

21 third-party financing arrangements; and 

22 (C) consistency with the statutory authori23 ties, obligations, and limitations of the Federal 

24 utility; 
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1 (2) provisions for monitoring and oversight by 

2 the Federal utility of the Transmission Organiza3 tion’s terms and conditions of the contract, agree4 ment, or other arrangement, including a provision 

5 for the resolution of disputes through arbitration or 

6 other means with the Transmission Organization or 

7 with other participants, notwithstanding the obliga8 tions and limitations of any other law regarding ar9 bitration; and 

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

11 withdraw from the Transmission Organization and 

12 terminate the contract, agreement, or other arrange13 ment in accordance with its terms. 

14 (d) COMMISSION.—Neither this section, actions taken 

15 pursuant to this section, nor any other transaction of a 

16 Federal utility participating in a Transmission Organiza17 tion shall confer on the Commission jurisdiction or author18 ity over— 

19 (1) the electric generation assets, electric capac20 ity, or energy of the Federal utility that the Federal 

21 utility is authorized by law to market; or 

22 (2) the power sales activities of the Federal 

23 utility. 

24 (e) EXISTING STATUTORY AND OTHER OBLIGA25 TIONS.— 
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•S 10 PCS 

1 (1) SYSTEM OPERATION REQUIREMENTS.—No 

2 statutory provision requiring or authorizing a Fed3 eral utility to transmit electric power or to construct, 

4 operate, or maintain the transmission system of the 

5 Federal utility prohibits a transfer of control and 

6 use of the transmission system pursuant to, and 

7 subject to, the requirements of this section. 

8 (2) OTHER OBLIGATIONS.—This subsection 

9 does not— 

10 (A) suspend, or exempt any Federal utility 

11 from, any provision of Federal law in effect on 

12 the date of enactment of this Act, including any 

13 requirement or direction relating to the use of 

14 the transmission system of the Federal utility, 

15 environmental protection, fish and wildlife pro16 tection, flood control, navigation, water delivery, 

17 or recreation; or 

18 (B) authorize abrogation of any contract 

19 or treaty obligation. 

20 (3) CONFORMING AMENDMENT.—Section 311 

21 of the Energy and Water Development Appropria22 tions Act, 2001 (16 U.S.C. 824n) is repealed. 

23 SEC. 1234. STANDARD MARKET DESIGN. 

24 The proposed rulemaking of the Commission entitled 

25 ‘‘Remedying Undue Discrimination through Open Access 
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•S 10 PCS 

1 Transmission Service and Standard Electricity Market 

2 Design’’ (Docket No. RM01–12–000) (commonly known 

3 as ‘‘SMD NOPR’’) is terminated and shall not be re4 issued. 

5 SEC. 1235. NATIVE LOAD SERVICE OBLIGATION. 

6 Part II of the Federal Power Act (16 U.S.C. 824 et 

7 seq.) (as amended by section 1232) is amended by adding 

8 at the end the following: 

9 ‘‘SEC. 218. NATIVE LOAD SERVICE OBLIGATION. 

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

11 ‘‘(1) The term ‘distribution utility’ means an 

12 electric utility that has a service obligation to end13 users or to a State utility or electric cooperative 

14 that, directly or indirectly, through 1 or more addi15 tional State utilities or electric cooperatives, provides 

16 electric service to end-users. 

17 ‘‘(2) The term ‘load-serving entity’ means a dis18 tribution utility or an electric utility that has a serv19 ice obligation. 

20 ‘‘(3) The term ‘service obligation’ means a re21 quirement applicable to, or the exercise of authority 

22 granted to, an electric utility under Federal, State, 

23 or local law or under long-term contracts to provide 

24 electric service to end-users or to a distribution util25 ity. 
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1 ‘‘(4) The term ‘State utility’ means a State or 

2 any political subdivision of a State, or any agency, 

3 authority, or instrumentality of any 1 or more 

4 States or political subdivisions, or a corporation that 

5 is wholly owned, directly or indirectly, by any 1 or 

6 more of the States or political subdivisions, com7 petent to carry on the business of developing, trans8 mitting, using, or distributing power. 

9 ‘‘(b) MEETING SERVICE OBLIGATIONS.—(1) Para10 graph (2) applies to any load-serving entity that, as of 

11 the date of enactment of this section— 

12 ‘‘(A) owns generation facilities, markets the 

13 output of Federal generation facilities, or holds 

14 rights under 1 or more wholesale contracts to pur15 chase electric energy, for the purpose of meeting a 

16 service obligation; and 

17 ‘‘(B) by reason of ownership of transmission fa18 cilities, or 1 or more contracts or service agreements 

19 for firm transmission service, holds firm trans20 mission rights for delivery of the output of the gen21 eration facilities or the purchased energy to meet the 

22 service obligation. 

23 ‘‘(2) Any load-serving entity described in paragraph 

24 (1) is entitled to use the firm transmission rights, or, 

25 equivalent tradable or financial transmission rights, in 
651 

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1 order to deliver the output or purchased energy, or the 

2 output of other generating facilities or purchased energy 

3 to the extent deliverable using the rights, to the extent 

4 required to meet the service obligation of the load-serving 

5 entity. 

6 ‘‘(3)(A) To the extent that all or a portion of the 

7 service obligation covered by the firm transmission rights 

8 or equivalent tradable or financial transmission rights is 

9 transferred to another load-serving entity, the successor 

10 load-serving entity shall be entitled to use the firm trans11 mission rights or equivalent tradable or financial trans12 mission rights associated with the transferred service obli13 gation. 

14 ‘‘(B) Subsequent transfers to another load-serving 

15 entity, or back to the original load-serving entity, shall be 

16 entitled to the same rights. 

17 ‘‘(4) The Commission shall exercise the authority of 

18 the Commission under this Act in a manner that facili19 tates the planning and expansion of transmission facilities 

20 to meet the reasonable needs of load-serving entities to 

21 satisfy the service obligations of the load-serving entities, 

22 and enables load-serving entities to secure firm trans23 mission rights (or equivalent tradable or financial rights) 

24 on a long term basis for long term power supply arrange25 ments made, or planned, to meet such needs. 
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1 ‘‘(c) ALLOCATION OF TRANSMISSION RIGHTS.— 

2 Nothing in subsections (b)(1), (b)(2) and (b)(3) of this 

3 section shall affect any existing or future methodology em4 ployed by a Transmission Organization for allocating or 

5 auctioning transmission rights if such Transmission Orga6 nization was authorized by the Commission to allocate or 

7 auction financial transmission rights on its system as of 

8 January 1, 2005, and the Commission determines that 

9 any future allocation or auction is just, reasonable and 

10 not unduly discriminatory or preferential, provided, how11 ever, that if such a Transmission Organization never allo12 cated financial transmission rights on its system that per13 tained to a period before January 1, 2005, with respect 

14 to any application by such Transmission Organization that 

15 would change its methodology the Commission shall exer16 cise its authority in a manner consistent with the Act and 

17 that takes into account the policies expressed in sub18 sections (b)(1), (b)(2) and (b)(3) as applied to firm trans19 mission rights held by a load-serving entity as of January 

20 1, 2005, to the extent the associated generation ownership 

21 or power purchase arrangements remain in effect. 

22 ‘‘(d) CERTAIN TRANSMISSION RIGHTS.—The Com23 mission may exercise authority under this Act to make 

24 transmission rights not used to meet an obligation covered 

25 by subsection (b) available to other entities in a manner 
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1 determined by the Commission to be just, reasonable, and 

2 not unduly discriminatory or preferential. 

3 ‘‘(e) OBLIGATION TO BUILD.—Nothing in this Act re4 lieves a load-serving entity from any obligation under 

5 State or local law to build transmission or distribution fa6 cilities adequate to meet the service obligations of the load7 serving entity. 

8 ‘‘(f) CONTRACTS.—Nothing in this section shall pro9 vide a basis for abrogating any contract or service agree10 ment for firm transmission service or rights in effect as 

11 of the date of the enactment of this subsection. If an ISO 

12 in the Western Interconnection had allocated financial 

13 transmission rights prior to the date of enactment of this 

14 section but had not done so with respect to one or more 

15 load-serving entities’ firm transmission rights held under 

16 contracts to which the preceding sentence applies (or held 

17 by reason of ownership or future ownership of trans18 mission facilities), such load-serving entities may not be 

19 required, without their consent, to convert such firm 

20 transmission rights to tradable or financial rights, except 

21 where the load-serving entity has voluntarily joined the 

22 ISO as a participating transmission owner (or its suc23 cessor) in accordance with the ISO tariff. 

24 ‘‘(g) WATER PUMPING FACILITIES.—The Commis25 sion shall ensure that any entity described in section 
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1 201(f) that owns transmission facilities used predomi2 nately to support its own water pumping facilities shall 

3 have, with respect to the facilities, protections for trans4 mission service comparable to those provided to load-serv5 ing entities pursuant to this section. 

6 ‘‘(h) ERCOT.—This section shall not apply within 

7 the area referred to in section 212(k)(2)(A). 

8 ‘‘(i) JURISDICTION.—This section does not authorize 

9 the Commission to take any action not otherwise within 

10 the jurisdiction of the Commission. 

11 ‘‘(j) TVA AREA.—(1) Subject to paragraphs (2) and 

12 (3), for purposes of subsection (b)(1)(B), a load-serving 

13 entity that is located within the service area of the Ten14 nessee Valley Authority and that has a firm wholesale 

15 power supply contract with the Tennessee Valley Author16 ity shall be considered to hold firm transmission rights 

17 for the transmission of the power provided. 

18 ‘‘(2) Nothing in this subsection affects the require19 ments of section 212(j). 

20 ‘‘(3) The Commission shall not issue an order on the 

21 basis of this subsection that is contrary to the purposes 

22 of section 212(j).’’. 

23 (h) FERC RULEMAKING ON LONG-TERM TRANS24 MISSION RIGHTS IN ORGANIZED MARKETS.—Within one 

25 year after the date of enactment of this section and after 
655 

•S 10 PCS 

1 notice and an opportunity for comment, the Commission 

2 shall by rule or order implement subsection (b)(4) in 

3 Transmission Organizations with organized electricity 

4 markets. 

5 (i) EFFECT OF EXERCISING RIGHTS.—An entity that 

6 to the extent required to meet its service obligations exer7 cises rights described in subsection (b) shall not be consid8 ered by such action as engaging in undue discrimination 

9 or preference under this Act. 

10 SEC. 1236. PROTECTION OF TRANSMISSION CONTRACTS IN 

11 THE PACIFIC NORTHWEST. 

12 Part II of the Federal Power Act (16 U.S.C. 824 et 

13 seq.) (as amended by section 1235) is amended by adding 

14 at the end the following: 

15 ‘‘SEC. 219. PROTECTION OF TRANSMISSION CONTRACTS IN 

16 THE PACIFIC NORTHWEST. 

17 ‘‘(a) DEFINITION OF ELECTRIC UTILITY OR PER18 SON.—In this section, the term ‘electric utility or person’ 

19 means an electric utility or person that— 

20 ‘‘(1) as of the date of enactment of the Energy 

21 Policy Act of 2005 holds firm transmission rights 

22 pursuant to contract or by reason of ownership of 

23 transmission facilities; and 

24 ‘‘(2) is located— 
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1 ‘‘(A) in the Pacific Northwest, as that re2 gion is defined in section 3 of the Pacific 

3 Northwest Electric Power Planning and Con4 servation Act (16 U.S.C. 839a); or 

5 ‘‘(B) in that portion of a State included in 

6 the geographic area proposed for a regional 

7 transmission organization in Commission Dock8 et Number RT01–35 on the date on which that 

9 docket was opened. 

10 ‘‘(b) PROTECTION OF TRANSMISSION CONTRACTS.— 

11 Nothing in this Act confers on the Commission the author12 ity to require an electric utility or person to convert to 

13 tradable or financial rights— 

14 ‘‘(1) firm transmission rights described in sub15 section (a)(1); or 

16 ‘‘(2) firm transmission rights obtained by exer17 cising contract or tariff rights associated with the 

18 firm transmission rights described in subsection 

19 (a)(1).’’. 

20 Subtitle D—Transmission Rate 

21 Reform 

22 SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

23 Part II of the Federal Power Act (16 U.S.C. 824 et 

24 seq.) (as amended by section 1236) is amended by adding 

25 at the end the following: 
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•S 10 PCS 

1 ‘‘SEC. 220. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

2 ‘‘(a) RULEMAKING REQUIREMENT.—Not later than 

3 1 year after the date of enactment of this section, the 

4 Commission shall establish, by rule, incentive-based (in5 cluding performance-based) rate treatments for the trans6 mission of electric energy in interstate commerce by public 

7 utilities for the purpose of benefiting consumers by ensur8 ing reliability and reducing the cost of delivered power by 

9 reducing transmission congestion. 

10 ‘‘(b) CONTENTS.—The rule shall— 

11 ‘‘(1) promote reliable and economically efficient 

12 transmission and generation of electricity by pro13 moting capital investment in the enlargement, im14 provement, maintenance, and operation of all facili15 ties for the transmission of electric energy in inter16 state commerce, regardless of the ownership of the 

17 facilities; 

18 ‘‘(2) provide a return on equity that attracts 

19 new investment in transmission facilities (including 

20 related transmission technologies); 

21 ‘‘(3) encourage deployment of transmission 

22 technologies and other measures to increase the ca23 pacity and efficiency of existing transmission facili24 ties and improve the operation of the facilities; and 

25 ‘‘(4) allow recovery of— 
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•S 10 PCS 

1 ‘‘(A) all prudently incurred costs necessary 

2 to comply with mandatory reliability standards 

3 issued pursuant to section 215; and 

4 ‘‘(B) all prudently incurred costs related to 

5 transmission infrastructure development pursu6 ant to section 216. 

7 ‘‘(c) JUST AND REASONABLE RATES.—All rates ap8 proved under the rules adopted pursuant to this section, 

9 including any revisions to the rules, are subject to the re10 quirements of sections 205 and 206 that all rates, charges, 

11 terms, and conditions be just and reasonable and not un12 duly discriminatory or preferential.’’. 

13 SEC. 1242. FUNDING NEW INTERCONNECTION AND TRANS14 MISSION UPGRADES. 

15 The Commission may approve a participant funding 

16 plan that allocates costs related to transmission upgrades 

17 or new generator interconnection, without regard to 

18 whether an applicant is a member of a Commission-ap19 proved Transmission Organization, if the plan results in 

20 rates that— 

21 (1) are just and reasonable; 

22 (2) are not unduly discriminatory or pref23 erential; and 
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1 (3) are otherwise consistent with sections 205 

2 and 206 of the Federal Power Act (16 U.S.C. 824d, 

3 824e). 

4 Subtitle E—Amendments to PURPA 

5 SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 

6 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

7 the Public Utility Regulatory Policies Act of 1978 (16 

8 U.S.C. 2621(d)) is amended by adding at the end the fol9 lowing: 

10 ‘‘(11) NET METERING.—Each electric utility 

11 shall make available upon request net metering serv12 ice to any electric consumer that the electric utility 

13 serves. For purposes of this paragraph, the term 

14 ‘net metering service’ means service to an electric 

15 consumer under which electric energy generated by 

16 that electric consumer from an eligible on-site gener17 ating facility and delivered to the local distribution 

18 facilities may be used to offset electric energy pro19 vided by the electric utility to the electric consumer 

20 during the applicable billing period. 

21 ‘‘(12) FUEL SOURCES.—Each electric utility 

22 shall develop a plan to minimize dependence on 1 

23 fuel source and to ensure that the electric energy it 

24 sells to consumers is generated using a diverse range 
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•S 10 PCS 

1 of fuels and technologies, including renewable tech2 nologies. 

3 ‘‘(13) FOSSIL FUEL GENERATION EFFI4 CIENCY.—Each electric utility shall develop and im5 plement a 10-year plan to increase the efficiency of 

6 its fossil fuel generation.’’. 

7 (b) COMPLIANCE.— 

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

9 Public Utility Regulatory Policies Act of 1978 (16 

10 U.S.C. 2622(b)) is amended by adding at the end 

11 the following: 

12 ‘‘(3)(A) Not later than 2 years after the enactment 

13 of this paragraph, each State regulatory authority (with 

14 respect to each electric utility for which it has ratemaking 

15 authority) and each nonregulated electric utility shall com16 mence the consideration referred to in section 111, or set 

17 a hearing date for such consideration, with respect to each 

18 standard established by paragraphs (11) through (13) of 

19 section 111(d). 

20 ‘‘(B) Not later than 3 years after the date of the en21 actment of this paragraph, each State regulatory authority 

22 (with respect to each electric utility for which it has rate23 making authority), and each nonregulated electric utility, 

24 shall complete the consideration, and shall make the deter25 mination, referred to in section 111 with respect to each 
661 

•S 10 PCS 

1 standard established by paragraphs (11) through (13) of 

2 section 111(d).’’. 

3 (2) FAILURE TO COMPLY.—Section 112(c) of 

4 the Public Utility Regulatory Policies Act of 1978 

5 (16 U.S.C. 2622(c)) is amended by adding at the 

6 end the following: 

7 ‘‘In the case of each standard established by paragraphs 

8 (11) through (13) of section 111(d), the reference con9 tained in this subsection to the date of enactment of this 

10 Act shall be deemed to be a reference to the date of enact11 ment of such paragraphs (11) through (13).’’. 

12 (3) PRIOR STATE ACTIONS.— 

13 (A) IN GENERAL.—Section 112 of the 

14 Public Utility Regulatory Policies Act of 1978 

15 (16 U.S.C. 2622) is amended by adding at the 

16 end the following: 

17 ‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and 

18 (c) of this section shall not apply to the standards estab19 lished by paragraphs (11) through (13) of section 111(d) 

20 in the case of any electric utility in a State if, before the 

21 enactment of this subsection— 

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

23 the standard concerned (or a comparable standard); 

24 ‘‘(2) the State regulatory authority for such 

25 State or relevant nonregulated electric utility has 
662 

•S 10 PCS 

1 conducted a proceeding to consider implementation 

2 of the standard concerned (or a comparable stand3 ard) for such utility; or 

4 ‘‘(3) the State legislature has voted on the im5 plementation of such standard (or a comparable 

6 standard) for such utility.’’. 

7 (B) CROSS REFERENCE.—Section 124 of 

8 such Act (16 U.S.C. 2634) is amended by add9 ing the following at the end thereof: ‘‘In the 

10 case of each standard established by paragraphs 

11 (11) through (13) of section 111(d), the ref12 erence contained in this subsection to the date 

13 of enactment of this Act shall be deemed to be 

14 a reference to the date of enactment of such 

15 paragraphs (11) through (13).’’. 

16 SEC. 1252. SMART METERING. 

17 (a) IN GENERAL.—Section 111(d) of the Public Utili18 ties Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 

19 is amended by adding at the end the following: 

20 ‘‘(14) TIME-BASED METERING AND COMMU21 NICATIONS.— 

22 ‘‘(A) Not later than 18 months after the 

23 date of enactment of this paragraph, each elec24 tric utility shall offer each of its customer class25 es, and provide individual customers upon cus-
663 

•S 10 PCS 

1 tomer request, a time-based rate schedule under 

2 which the rate charged by the electric utility 

3 varies during different time periods and reflects 

4 the variance, if any, in the utility’s costs of gen5 erating and purchasing electricity at the whole6 sale level. The time-based rate schedule shall 

7 enable the electric consumer to manage energy 

8 use and cost through advanced metering and 

9 communications technology. 

10 ‘‘(B) The types of time-based rate sched11 ules that may be offered under the schedule re12 ferred to in subparagraph (A) include, among 

13 others— 

14 ‘‘(i) time-of-use pricing whereby elec15 tricity prices are set for a specific time pe16 riod on an advance or forward basis, typi17 cally not changing more often than twice a 

18 year, based on the utility’s cost of gener19 ating and/or purchasing such electricity at 

20 the wholesale level for the benefit of the 

21 consumer. Prices paid for energy consumed 

22 during these periods shall be pre-estab23 lished and known to consumers in advance 

24 of such consumption, allowing them to 

25 vary their demand and usage in response 
664 

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1 to such prices and manage their energy 

2 costs by shifting usage to a lower cost pe3 riod or reducing their consumption overall; 

4 ‘‘(ii) critical peak pricing whereby 

5 time-of-use prices are in effect except for 

6 certain peak days, when prices may reflect 

7 the costs of generating and/or purchasing 

8 electricity at the wholesale level and when 

9 consumers may receive additional discounts 

10 for reducing peak period energy consump11 tion; 

12 ‘‘(iii) real-time pricing whereby elec13 tricity prices are set for a specific time pe14 riod on an advanced or forward basis, re15 flecting the utility’s cost of generating and/ 

16 or purchasing electricity at the wholesale 

17 level, and may change as often as hourly; 

18 and 

19 ‘‘(iv) credits for consumers with large 

20 loads who enter into pre-established peak 

21 load reduction agreements that reduce the 

22 planned capacity obligations of a utility. 

23 ‘‘(C) Each electric utility subject to sub24 paragraph (A) shall provide each customer re25 questing a time-based rate with a time-based 
665 

•S 10 PCS 

1 meter capable of enabling the utility and cus2 tomer to offer and receive such rate, respec3 tively. 

4 ‘‘(D) For purposes of implementing this 

5 paragraph, any reference contained in this sec6 tion to the date of enactment of the Public Util7 ity Regulatory Policies Act of 1978 shall be 

8 deemed to be a reference to the date of enact9 ment of this paragraph. 

10 ‘‘(E) In a State that permits third-party 

11 marketers to sell electric energy to retail elec12 tric consumers, such consumers shall be entitled 

13 to receive the same time-based metering and 

14 communications device and service as a retail 

15 electric consumer of the electric utility. 

16 ‘‘(F) Notwithstanding subsections (b) and 

17 (c) of section 112, each State regulatory au18 thority shall, not later than 18 months after the 

19 date of enactment of this paragraph conduct an 

20 investigation in accordance with section 115(i) 

21 and issue a decision whether it is appropriate to 

22 implement the standards set out in subpara23 graphs (A) and (C).’’. 

24 (b) STATE INVESTIGATION OF DEMAND RESPONSE

25 AND TIME-BASED METERING.—Section 115 of the Public 
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1 Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2625) 

2 is amended as follows: 

3 (1) By inserting in subsection (b) after the 

4 phrase ‘‘the standard for time-of-day rates estab5 lished by section 111(d)(3)’’ the following: ‘‘and the 

6 standard for time-based metering and communica7 tions established by section 111(d)(14)’’. 

8 (2) By inserting in subsection (b) after the 

9 phrase ‘‘are likely to exceed the metering’’ the fol10 lowing: ‘‘and communications’’. 

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

12 ‘‘(i) TIME-BASED METERING AND COMMUNICA13 TIONS.—In making a determination with respect to the 

14 standard established by section 111(d)(14), the investiga15 tion requirement of section 111(d)(14)(F) shall be as fol16 lows: Each State regulatory authority shall conduct an in17 vestigation and issue a decision whether or not it is appro18 priate for electric utilities to provide and install time-based 

19 meters and communications devices for each of their cus20 tomers which enable such customers to participate in time21 based pricing rate schedules and other demand response 

22 programs.’’. 

23 (c) FEDERAL ASSISTANCE ON DEMAND RE24 SPONSE.—Section 132(a) of the Public Utility Regulatory 

25 Policies Act of 1978 (16 U.S.C. 2642(a)) is amended by 
667 

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1 striking ‘‘and’’ at the end of paragraph (3), striking the 

2 period at the end of paragraph (4) and inserting ‘‘; and’’, 

3 and by adding the following at the end thereof: 

4 ‘‘(5) technologies, techniques, and rate-making 

5 methods related to advanced metering and commu6 nications and the use of these technologies, tech7 niques and methods in demand response programs.’’. 

8 (d) FEDERAL GUIDANCE.—Section 132 of the Public 

9 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) 

10 is amended by adding the following at the end thereof: 

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

12 responsible for— 

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

14 advantages, and benefits of advanced metering and 

15 communications technologies, including the funding 

16 of demonstration or pilot projects; 

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

18 providers and advanced metering and communica19 tions experts to identify and address barriers to the 

20 adoption of demand response programs; and 

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

22 enactment of the Energy Policy Act of 2005, pro23 viding Congress with a report that identifies and 

24 quantifies the national benefits of demand response 
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1 and makes a recommendation on achieving specific 

2 levels of such benefits by January 1, 2007.’’. 

3 (e) DEMAND RESPONSE AND REGIONAL COORDINA4 TION.— 

5 (1) IN GENERAL.—It is the policy of the United 

6 States to encourage States to coordinate, on a re7 gional basis, State energy policies to provide reliable 

8 and affordable demand response services to the pub9 lic. 

10 (2) TECHNICAL ASSISTANCE.—The Secretary 

11 shall provide technical assistance to States and re12 gional organizations formed by 2 or more States to 

13 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; 

19 (C) developing plans and programs to use 

20 demand response to respond to peak demand or 

21 emergency needs; and 

22 (D) identifying specific measures con23 sumers can take to participate in these demand 

24 response programs. 
669 

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

2 date of enactment of this Act, the Commission shall 

3 prepare and publish an annual report, by appro4 priate region, that assesses demand response re5 sources, including those available from all consumer 

6 classes, and which identifies and reviews— 

7 (A) saturation and penetration rate of ad8 vanced meters and communications tech9 nologies, devices and systems; 

10 (B) existing demand response programs 

11 and time-based rate programs; 

12 (C) the annual resource contribution of de13 mand resources; 

14 (D) the potential for demand response as 

15 a quantifiable, reliable resource for regional 

16 planning purposes; 

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

18 transmission planning and operations, demand 

19 resources are provided equitable treatment as a 

20 quantifiable, reliable resource relative to the re21 source obligations of any load-serving entity, 

22 transmission provider, or transmitting party; 

23 and 
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1 (F) regulatory barriers to improved cus2 tomer participation in demand response, peak 

3 reduction, and critical period pricing programs. 

4 (f) FEDERAL ENCOURAGEMENT OF DEMAND RE5 SPONSE DEVICES.—It is the policy of the United States 

6 that time-based pricing and other forms of demand re7 sponse, whereby electricity customers are provided with 

8 electricity price signals and the ability to benefit by re9 sponding to them, shall be encouraged, and the deploy10 ment of such technology and devices that enable electricity 

11 customers to participate in such pricing and demand re12 sponse systems shall be facilitated, and unnecessary bar13 riers to demand response participation in energy, capacity, 

14 and ancillary service markets shall be eliminated. It is fur15 ther the policy of the United States that the benefits of 

16 such demand response that accrue to those not deploying 

17 such technology and devices, but who are part of the same 

18 regional electricity entity, shall be recognized. 

19 (g) TIME LIMITATIONS.—Section 112(b) of the Pub20 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

21 2622(b)) is amended by adding at the end the following: 

22 ‘‘(4)(A) Not later than 1 year after the enact23 ment of this paragraph, each State regulatory au24 thority (with respect to each electric utility for which 

25 it has ratemaking authority) and each nonregulated 
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1 electric utility shall commence the consideration re2 ferred to in section 111, or set a hearing date for 

3 such consideration, with respect to the standard es4 tablished by paragraph (14) of section 111(d). 

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

6 the enactment of this paragraph, each State regu7 latory authority (with respect to each electric utility 

8 for which it has ratemaking authority), and each 

9 nonregulated electric utility, shall complete the con10 sideration, and shall make the determination, re11 ferred to in section 111 with respect to the standard 

12 established by paragraph (14) of section 111(d).’’. 

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

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

15 2622(c)) is amended by adding at the end the following: 

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

17 of section 111(d), the reference contained in this sub18 section to the date of enactment of this Act shall be 

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

20 paragraph (14).’’. 

21 (i) PRIOR STATE ACTIONS REGARDING SMART ME22 TERING STANDARDS.— 

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

24 Utility Regulatory Policies Act of 1978 (16 U.S.C. 
672 

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1 2622) is amended by adding at the end the fol2 lowing: 

3 ‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and 

4 (c) of this section shall not apply to the standard estab5 lished by paragraph (14) of section 111(d) in the case of 

6 any electric utility in a State if, before the enactment of 

7 this subsection— 

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

9 the standard concerned (or a comparable standard); 

10 ‘‘(2) the State regulatory authority for such 

11 State or relevant nonregulated electric utility has 

12 conducted a proceeding to consider implementation 

13 of the standard concerned (or a comparable stand14 ard) for such utility within the previous 3 years; or 

15 ‘‘(3) the State legislature has voted on the im16 plementation of such standard (or a comparable 

17 standard) for such utility within the previous 3 

18 years.’’. 

19 (2) CROSS REFERENCE.—Section 124 of such 

20 Act (16 U.S.C. 2634) is amended by adding the fol21 lowing at the end thereof: ‘‘In the case of the stand22 ard established by paragraph (14) of section 111(d), 

23 the reference contained in this subsection to the date 

24 of enactment of this Act shall be deemed to be a ref-
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1 erence to the date of enactment of such paragraph 

2 (14).’’. 

3 SEC. 1253. 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 the qualifying cogeneration 

18 facility or qualifying small power production facility 

19 has nondiscriminatory access to— 

20 ‘‘(A)(i) independently administered, auc21 tion-based day ahead and real time wholesale 

22 markets for the sale of electric energy; and (ii) 

23 wholesale markets for long-term sales of capac24 ity and electric energy; or 
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1 ‘‘(B)(i) transmission and interconnection 

2 services that are provided by a Commission-ap3 proved regional transmission entity and admin4 istered pursuant to an open access transmission 

5 tariff that affords nondiscriminatory treatment 

6 to all customers; and (ii) competitive wholesale 

7 markets that provide a meaningful opportunity 

8 to sell capacity, including long-term and short9 term sales, and electric energy, including long10 term, short-term and real-time sales, to buyers 

11 other than the utility to which the qualifying fa12 cility is interconnected. In determining whether 

13 a meaningful opportunity to sell exists, the 

14 Commission shall consider, among other fac15 tors, evidence of transactions within the rel16 evant market; or 

17 ‘‘(C) wholesale markets for the sale of ca18 pacity and electric energy that are, at a min19 imum, of comparable competitive quality as 

20 markets described in subparagraphs (A) and 

21 (B). 

22 ‘‘(2) REVISED PURCHASE AND SALE OBLIGA23 TION FOR NEW FACILITIES.—(A) After the date of 

24 enactment of this subsection, no electric utility shall 

25 be required pursuant to this section to enter into a 
675 

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1 new contract or obligation to purchase from or sell 

2 electric energy to a facility that is not an existing 

3 qualifying cogeneration facility unless the facility 

4 meets the criteria for qualifying cogeneration facili5 ties established by the Commission pursuant to the 

6 rulemaking required by subsection (n). 

7 ‘‘(B) For the purposes of this paragraph, the 

8 term ‘existing qualifying cogeneration facility’ means 

9 a facility that— 

10 ‘‘(i) was a qualifying cogeneration facility 

11 on the date of enactment of subsection (m); or 

12 ‘‘(ii) had filed with the Commission a no13 tice of self-certification, self recertification or 

14 an application for Commission certification 

15 under 18 C.F.R. 292.207 prior to the date on 

16 which the Commission issues the final rule re17 quired by subsection (n). 

18 ‘‘(3) COMMISSION REVIEW.—Any electric utility 

19 may file an application with the Commission for re20 lief from the mandatory purchase obligation pursu21 ant to this subsection on a service territory-wide 

22 basis. Such application shall set forth the factual 

23 basis upon which relief is requested and describe 

24 why the conditions set forth in subparagraphs (A), 

25 (B) or (C) of paragraph (1) of this subsection have 
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1 been met. After notice, including sufficient notice to 

2 potentially affected qualifying cogeneration facilities 

3 and qualifying small power production facilities, and 

4 an opportunity for comment, the Commission shall 

5 make a final determination within 90 days of such 

6 application regarding whether the conditions set 

7 forth in subparagraphs (A), (B) or (C) of paragraph 

8 (1) have been met. 

9 ‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR10 CHASE.—At any time after the Commission makes a 

11 finding under paragraph (3) relieving an electric 

12 utility of its obligation to purchase electric energy, 

13 a qualifying cogeneration facility, a qualifying small 

14 power production facility, a State agency, or any 

15 other affected person may apply to the Commission 

16 for an order reinstating the electric utility’s obliga17 tion to purchase electric energy under this section. 

18 Such application shall set forth the factual basis 

19 upon which the application is based and describe 

20 why the conditions set forth in subparagraphs (A), 

21 (B) or (C) of paragraph (1) of this subsection are 

22 no longer met. After notice, including sufficient no23 tice to potentially affected utilities, and opportunity 

24 for comment, the Commission shall issue an order 

25 within 90 days of such application reinstating the 
677 

•S 10 PCS 

1 electric utility’s obligation to purchase electric en2 ergy under this section if the Commission finds that 

3 the conditions set forth in subparagraphs (A), (B) or 

4 (C) of paragraph (1) which relieved the obligation to 

5 purchase, are no longer met. 

6 ‘‘(5) OBLIGATION TO SELL.—After the date of 

7 enactment of this subsection, no electric utility shall 

8 be required to enter into a new contract or obliga9 tion to sell electric energy to a qualifying cogenera10 tion facility or a qualifying small power production 

11 facility under this section if the Commission finds 

12 that— 

13 ‘‘(A) competing retail electric suppliers are 

14 willing and able to sell and deliver electric en15 ergy to the qualifying cogeneration facility or 

16 qualifying small power production facility; and 

17 ‘‘(B) the electric utility is not required by 

18 State law to sell electric energy in its service 

19 territory. 

20 ‘‘(6) NO EFFECT ON EXISTING RIGHTS AND

21 REMEDIES.—Nothing in this subsection affects the 

22 rights or remedies of any party under any contract 

23 or obligation, in effect or pending approval before 

24 the appropriate State regulatory authority or non25 regulated electric utility on the date of enactment of 
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1 this subsection, to purchase electric energy or capac2 ity from or to sell electric energy or capacity to a 

3 qualifying cogeneration facility or qualifying small 

4 power production facility under this Act (including 

5 the right to recover costs of purchasing electric en6 ergy or capacity). 

7 ‘‘(7) RECOVERY OF COSTS.—(A) The Commis8 sion shall issue and enforce such regulations as are 

9 necessary to ensure that an electric utility that pur10 chases electric energy or capacity from a qualifying 

11 cogeneration facility or qualifying small power pro12 duction facility in accordance with any legally en13 forceable obligation entered into or imposed under 

14 this section recovers all prudently incurred costs as15 sociated with the purchase. 

16 ‘‘(B) A regulation under subparagraph (A) shall 

17 be enforceable in accordance with the provisions of 

18 law applicable to enforcement of regulations under 

19 the Federal Power Act (16 U.S.C. 791a et seq.). 

20 ‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILI21 TIES.—(1)(A) Not later than 180 days after the date of 

22 enactment of this section, the Commission shall issue a 

23 rule revising the criteria in 18 C.F.R. 292.205 for new 

24 qualifying cogeneration facilities seeking to sell electric en25 ergy pursuant to section 210 of this Act to ensure— 
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1 ‘‘(i) that the thermal energy output of a new 

2 qualifying cogeneration facility is used in a produc3 tive and beneficial manner; 

4 ‘‘(ii) the electrical, thermal, and chemical out5 put of the cogeneration facility is used fundamen6 tally for industrial, commercial, or institutional pur7 poses and is not intended fundamentally for sale to 

8 an electric utility, taking into account technological, 

9 efficiency, economic, and variable thermal energy re10 quirements, as well as State laws applicable to sales 

11 of electric energy from a qualifying facility to its 

12 host facility; and 

13 ‘‘(iii) continuing progress in the development of 

14 efficient electric energy generating technology. 

15 ‘‘(B) The rule issued pursuant to section (n)(1)(A) 

16 shall be applicable only to facilities that seek to sell electric 

17 energy pursuant to section 210 of this Act. For all other 

18 purposes, except as specifically provided in section 

19 (m)(2)(A), qualifying facility status shall be determined 

20 in accordance with the rules and regulations of this Act. 

21 ‘‘(2) Notwithstanding rule revisions under paragraph 

22 (1), the Commission’s criteria for qualifying cogeneration 

23 facilities in effect prior to the date on which the Commis24 sion issues the final rule required by paragraph (1) shall 

25 continue to apply to any cogeneration facility that— 
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1 ‘‘(A) was a qualifying cogeneration facility on 

2 the date of enactment of subsection (m), or 

3 ‘‘(B) had filed with the Commission a notice of 

4 self-certification, self-recertification or an application 

5 for Commission certification under 18 C.F.R. 

6 292.207 prior to the date on which the Commission 

7 issues the final rule required by paragraph (1).’’. 

8 (b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 

9 (1) QUALIFYING SMALL POWER PRODUCTION

10 FACILITY.—Section 3(17)(C) of the Federal Power 

11 Act (16 U.S.C. 796(17)(C)) is amended to read as 

12 follows: 

13 ‘‘(C) ‘qualifying small power production fa14 cility’ means a small power production facility 

15 that the Commission determines, by rule, meets 

16 such requirements (including requirements re17 specting fuel use, fuel efficiency, and reliability) 

18 as the Commission may, by rule, prescribe;’’. 

19 (2) QUALIFYING COGENERATION FACILITY.— 

20 Section 3(18)(B) of the Federal Power Act (16 

21 U.S.C. 796(18)(B)) is amended to read as follows: 

22 ‘‘(B) ‘qualifying cogeneration facility’ 

23 means a cogeneration facility that the Commis24 sion determines, by rule, meets such require25 ments (including requirements respecting min-
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1 imum size, fuel use, and fuel efficiency) as the 

2 Commission may, by rule, prescribe;’’. 

3 SEC. 1254. INTERCONNECTION. 

4 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

5 the Public Utility Regulatory Policies Act of 1978 (16 

6 U.S.C. 2621(d)) (as amended by section 1252(a)) is 

7 amended by adding at the end the following: 

8 ‘‘(15) INTERCONNECTION.—(A) In this para9 graph, the term ‘interconnection service’ means serv10 ice to an electric consumer by which an on-site gen11 erating facility on the premises of the electric con12 sumer is connected to the local distribution facilities. 

13 ‘‘(B)(i) Each electric utility shall make avail14 able, on request, interconnection service to any elec15 tric consumer that the electric utility serves. 

16 ‘‘(ii) Interconnection services shall be made 

17 available under clause (i) based on the standards de18 veloped by the Institute of Electrical and Electronics 

19 Engineers, entitled ‘‘IEEE Standard 1547 for Inter20 connecting Distributed Resources with Electric 

21 Power Systems’’ (or successor standards). 

22 ‘‘(C)(i) Electric utilities shall establish agree23 ments and procedures providing that the inter24 connection services made available under subpara25 graph (B) promote current best practices of inter-
682 

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1 connection for distributed generation, including 

2 practices stipulated in model codes adopted by asso3 ciations of State regulatory agencies. 

4 ‘‘(ii) Any agreements and procedures estab5 lished under clause (i) shall be just and reasonable 

6 and not unduly discriminatory or preferential.’’. 

7 (b) COMPLIANCE.— 

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

9 Public Utility Regulatory Policies Act of 1978 (16 

10 U.S.C. 2622(b)) (as amended by section 1252(g)) is 

11 amended by adding at the end the following: 

12 ‘‘(5)(A) Not later than 1 year after the date of 

13 enactment of this paragraph, each State regulatory 

14 authority (with respect to each electric utility for 

15 which the State regulatory authority has ratemaking 

16 authority) and each nonregulated utility shall, with 

17 respect to the standard established by section 

18 111(d)(15)— 

19 ‘‘(i) commence the consideration under sec20 tion 111(a); or 

21 ‘‘(ii) set a hearing date for the consider22 ation. 

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

24 enactment of this paragraph, each State regulatory 

25 authority (with respect to each electric utility for 
683 

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1 which the State regulatory authority has ratemaking 

2 authority) and each nonregulated electric utility 

3 shall, with respect to the standard established by 

4 section 111(d)(15), complete the consideration and 

5 make the determination under section 111(a).’’. 

6 (2) FAILURE TO COMPLY.—Section 112(c) of 

7 the Public Utility Regulatory Policies Act of 1978 

8 (16 U.S.C. 2622(c)) (as amended by section 

9 1252(h)) is amended by adding at the end the fol10 lowing: ‘‘In the case of the standard established by 

11 paragraph (15), the reference contained in this sub12 section to the date of enactment of this Act shall be 

13 considered to be a reference to the date of enact14 ment of paragraph (15).’’. 

15 (3) PRIOR STATE ACTIONS.— 

16 (A) IN GENERAL.—Section 112(e) of the 

17 Public Utility Regulatory Policies Act of 1978 

18 (as added by section 1252(i)(1)) is amended by 

19 striking ‘‘paragraph 14’’ and inserting ‘‘para20 graph (14) or (15)’’. 

21 (B) CONFORMING AMENDMENT.—Section 

22 124 of the Public Utility Regulatory Policies 

23 Act of 1978 (16 U.S.C. 2634) (as amended by 

24 section 1252(i)(2)) is amended by adding at the 

25 end the following: ‘‘In the case of each standard 
684 

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1 established by section 111(d)(15), the reference 

2 contained in this section to the date of enact3 ment of the Act shall be considered to be a ref4 erence to the date of enactment of paragraph 

5 (15).’’. 

6 Subtitle F—Market Transparency, 

7 Enforcement, and Consumer 

8 Protection 

9 SEC. 1261. MARKET TRANSPARENCY RULES. 

10 Part II of the Federal Power Act (16 U.S.C. 824 et 

11 seq.) (as amended by section 1241) is amended by adding 

12 at the end the following: 

13 ‘‘SEC. 221. MARKET TRANSPARENCY RULES. 

14 ‘‘(a) IN GENERAL.—The Commission may issue such 

15 rules as the Commission considers to be appropriate to 

16 establish an electronic information system to provide the 

17 Commission and the public with access to such informa18 tion as is necessary or appropriate to facilitate price trans19 parency and participation in markets for the sale in inter20 state commerce of electric energy at wholesale. 

21 ‘‘(b) INFORMATION TO BE MADE AVAILABLE.—(1) 

22 The system under subsection (a) shall provide, on a timely 

23 basis, information about the availability and market price 

24 of wholesale electric energy and transmission services to 

25 the Commission, State commissions, buyers and sellers of 
685 

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1 wholesale electric energy, users of transmission services, 

2 and the public. 

3 ‘‘(2) In determining the information to be made avail4 able under the system and the time at which to make such 

5 information available, the Commission shall seek to ensure 

6 that consumers and competitive markets are protected 

7 from the adverse effects of potential collusion or other 

8 anticompetitive behaviors that can be facilitated by un9 timely public disclosure of transaction-specific informa10 tion. 

11 ‘‘(c) AUTHORITY TO OBTAIN INFORMATION.—The 

12 Commission shall have authority to obtain information de13 scribed in subsections (a) and (b) from any electric utility 

14 or transmitting utility (including any entity described in 

15 section 201(f)). 

16 ‘‘(d) EXEMPTIONS.—The rules of the Commission, if 

17 adopted, shall exempt from disclosure information that the 

18 Commission determines would, if disclosed— 

19 ‘‘(1) be detrimental to the operation of an effec20 tive market; or 

21 ‘‘(2) jeopardize system security. 

22 ‘‘(e) COMMODITY FUTURES TRADING COMMIS23 SION.—(1) This section shall not affect the exclusive juris24 diction of the Commodity Futures Trading Commission 

25 with respect to accounts, agreements, contracts, or trans-
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1 actions in commodities under the Commodity Exchange 

2 Act (7 U.S.C. 1 et seq.). 

3 ‘‘(2) Any request for information to a designated con4 tract market, registered derivatives transaction execution 

5 facility, board of trade, exchange, or market involving an 

6 account, agreement, contract, or transaction in a com7 modity (including natural gas, electricity and other energy 

8 commodities) within the exclusive jurisdiction of the Com9 modity Futures Trading Commission shall be directed to 

10 the Commodity Futures Trading Commission, which shall 

11 cooperate in responding to any information request by the 

12 Commission. 

13 ‘‘(f) SAVINGS PROVISION.—In exercising authority 

14 under this section, the Commission shall not— 

15 ‘‘(1) compete with, or displace from the market 

16 place, any price publisher (including any electronic 

17 price publisher); or 

18 ‘‘(2) regulate price publishers (including any 

19 electronic price publisher) or impose any require20 ments on the publication of information by price 

21 publishers (including any electronic price publisher). 

22 ‘‘(g) ERCOT.—This section shall not apply to a 

23 transaction for the purchase or sale of wholesale electric 

24 energy or transmission services within the area described 

25 in section 212(k)(2)(A).’’. 
687 

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1 SEC. 1262. FALSE STATEMENTS. 

2 Part II of the Federal Power Act (16 U.S.C. 824 et 

3 seq.) (as amended by section 1261) is amended by adding 

4 at the end the following: 

5 ‘‘SEC. 222. PROHIBITION ON FILING FALSE INFORMATION. 

6 ‘‘No entity (including an entity described in section 

7 201(f)) shall willfully and knowingly report any informa8 tion relating to the price of electricity sold at wholesale 

9 or the availability of transmission capacity, which informa10 tion the person or any other entity knew to be false at 

11 the time of the reporting, to a Federal agency with intent 

12 to fraudulently affect the data being compiled by the Fed13 eral agency.’’. 

14 SEC. 1263. MARKET MANIPULATION. 

15 Part II of the Federal Power Act (16 U.S.C. 824 et 

16 seq.) (as amended by section 1262) is amended by adding 

17 at the end the following: 

18 ‘‘SEC. 223. PROHIBITION OF ENERGY MARKET MANIPULA19 TION. 

20 ‘‘It shall be unlawful for any entity (including an en21 tity described in section 201(f)), directly or indirectly, to 

22 use or employ, in connection with the purchase or sale of 

23 electric energy or the purchase or sale of transmission 

24 services subject to the jurisdiction of the Commission, any 

25 manipulative or deceptive device or contrivance (as those 

26 terms are used in section 10(b) of the Securities Exchange 
688 

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1 Act of 1934 (15 U.S.C. 78j(b))), in contravention of such 

2 rules and regulations as the Commission may prescribe as 

3 necessary or appropriate in the public interest or for the 

4 protection of electric ratepayers.’’. 

5 SEC. 1264. ENFORCEMENT. 

6 (a) COMPLAINTS.—Section 306 of the Federal Power 

7 Act (16 U.S.C. 825e) is amended— 

8 (1) by inserting ‘‘electric utility,’’ after ‘‘Any 

9 person,’’; and 

10 (2) by inserting ‘‘, transmitting utility,’’ after 

11 ‘‘licensee’’ each place it appears. 

12 (b) INVESTIGATIONS.—Section 307(a) of the Federal 

13 Power Act (16 U.S.C. 825f(a)) is amended— 

14 (1) by inserting ‘‘, electric utility, transmitting 

15 utility, or other entity’’ after ‘‘person’’ each place it 

16 appears; and 

17 (2) in the first sentence, by inserting before the 

18 period at the end the following: ‘‘, or in obtaining in19 formation about the sale of electric energy at whole20 sale in interstate commerce and the transmission of 

21 electric energy in interstate commerce’’. 

22 (c) REVIEW OF COMMISSION ORDERS.—Section 

23 313(a) of the Federal Power Act (16 U.S.C. 825l) is 

24 amended by inserting ‘‘electric utility,’’ after ‘‘person,’’ in 

25 the first 2 places it appears and by striking ‘‘any person 
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1 unless such person’’ and inserting ‘‘any entity unless such 

2 entity’’. 

3 (d) CRIMINAL PENALTIES.—Section 316 of the Fed4 eral Power Act (16 U.S.C. 825o) is amended— 

5 (1) in subsection (a)— 

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

7 ‘‘$1,000,000’’; and 

8 (B) by striking ‘‘two years’’ and inserting 

9 ‘‘5 years’’; 

10 (2) in subsection (b), by striking ‘‘$500’’ and 

11 inserting ‘‘$25,000’’; and 

12 (3) by striking subsection (c). 

13 (e) CIVIL PENALTIES.—Section 316A of the Federal 

14 Power Act (16 U.S.C. 825o–1) is amended— 

15 (1) by striking ‘‘section 211, 212, 213, or 214’’ 

16 each place it appears and inserting ‘‘part II’’; and 

17 (2) in subsection (b), by striking ‘‘$10,000’’ 

18 and inserting ‘‘$1,000,000’’. 

19 SEC. 1265. REFUND EFFECTIVE DATE. 

20 Section 206(b) of the Federal Power Act (16 U.S.C. 

21 824e(b)) is amended— 

22 (1) by striking ‘‘the date 60 days after the fil23 ing of such complaint nor later than 5 months after 

24 the expiration of such 60-day period’’ in the second 

25 sentence 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) by striking ‘‘60 days after’’ in the third sen4 tence and inserting ‘‘of’’; 

5 (3) by striking ‘‘expiration of such 60-day pe6 riod’’ in the third sentence and inserting ‘‘publica7 tion date’’; and 

8 (4) by striking the fifth sentence and inserting 

9 the following: ‘‘If no final decision is rendered by the 

10 conclusion of the 180-day period commencing upon 

11 initiation of a proceeding pursuant to this section, 

12 the Commission shall state the reasons why it has 

13 failed to do so and shall state its best estimate as 

14 to when it reasonably expects to make such deci15 sion.’’. 

16 SEC. 1266. REFUND AUTHORITY. 

17 Section 206 of the Federal Power Act (16 U.S.C. 

18 824e) is amended by adding at the end the following: 

19 ‘‘(e)(1) In this subsection: 

20 ‘‘(A) The term ‘short-term sale’ means an 

21 agreement for the sale of electric energy at wholesale 

22 in interstate commerce that is for a period of 48 

23 hours or less. 

24 ‘‘(B) The term ‘applicable Commission rule’ 

25 means a Commission rule applicable to sales at 
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1 wholesale by public utilities that the Commission de2 termines after notice and comment should also be 

3 applicable to entities subject to this subsection. 

4 ‘‘(2) If an entity described in section 201(f) volun5 tarily makes a short-term sale of electric energy through 

6 an organized market in which the rates for the sale are 

7 established by Commission-approved tariff (rather than by 

8 contract) and the sale violates the terms of the tariff or 

9 applicable Commission rules in effect at the time of the 

10 sale, the entity shall be subject to the refund authority 

11 of the Commission under this section with respect to the 

12 violation. 

13 ‘‘(3) This section shall not apply to— 

14 ‘‘(A) any entity that sells in total (including af15 filiates of the entity) less than 8,000,000 megawatt 

16 hours of electricity per year; or 

17 ‘‘(B) any electric cooperative. 

18 ‘‘(4)(A) The Commission shall have refund authority 

19 under paragraph (2) with respect to a voluntary short20 term sale of electric energy by the Bonneville Power Ad21 ministration only if the sale is at an unjust and unreason22 able rate. 

23 ‘‘(B) The Commission may order a refund under sub24 paragraph (A) only for short-term sales made by the Bon25 neville Power Administration at rates that are higher than 
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1 the highest just and reasonable rate charged by any other 

2 entity for a short-term sale of electric energy in the same 

3 geographic market for the same, or most nearly com4 parable, period as the sale by the Bonneville Power Ad5 ministration. 

6 ‘‘(5) In the case of any Federal power marketing 

7 agency or the Tennessee Valley Authority, the Commission 

8 shall not assert or exercise any regulatory authority or 

9 power under paragraph (2) other than the ordering of re10 funds to achieve a just and reasonable rate.’’. 

11 SEC. 1267. CONSUMER PRIVACY AND UNFAIR TRADE PRAC12 TICES. 

13 (a) DEFINITIONS.—In this section: 

14 (1) COMMISSION.—The term ‘‘Commission’’ 

15 means the Federal Trade Commission. 

16 (2) STATE REGULATORY AUTHORITY.—The 

17 term ‘‘State regulatory authority’’ has the meaning 

18 given the term in section 3 of the Federal Power Act 

19 (16 U.S.C. 796). 

20 (3) ELECTRIC CONSUMER; ELECTRIC UTIL21 ITY.—The terms ‘‘electric consumer’’ and ‘‘electric 

22 utility’’ have the meanings given those terms in sec23 tion 3 of the Public Utility Regulatory Policies Act 

24 of 1978 (16 U.S.C. 2602). 
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1 (b) PRIVACY.—The Commission may issue rules pro2 tecting the privacy of electric consumers from the disclo3 sure of consumer information obtained in connection with 

4 the sale or delivery of electric energy to electric consumers. 

5 (c) SLAMMING.—The Commission may issue rules 

6 prohibiting the change of selection of an electric utility ex7 cept with the informed consent of the electric consumer 

8 or if approved by the appropriate State regulatory author9 ity. 

10 (d) CRAMMING.—The Commission may issue rules 

11 prohibiting the sale of goods and services to an electric 

12 consumer unless expressly authorized by law or the electric 

13 consumer. 

14 (e) RULEMAKING.—The Commission shall proceed in 

15 accordance with section 553 of title 5, United States Code, 

16 when prescribing a rule under this section. 

17 (f) STATE AUTHORITY.—If the Commission deter18 mines that the regulations of a State provide equivalent 

19 or greater protection than the protection provided under 

20 this section, the regulations of the State shall apply in that 

21 State in lieu of the regulations issued by the Commission 

22 under this section. 

23 SEC. 1268. OFFICE OF CONSUMER ADVOCACY. 

24 (a) DEFINITIONS.—In this section: 
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1 (1) ENERGY CUSTOMER.—The term ‘‘energy 

2 customer’’ means a residential customer or a small 

3 commercial customer that receives products or serv4 ices from a public utility or natural gas company 

5 under the jurisdiction of the Commission. 

6 (2) NATURAL GAS COMPANY.—The term ‘‘nat7 ural gas company’’ has the meaning given the term 

8 in section 2 of the Natural Gas Act (15 U.S.C. 

9 717a), as modified by section 601(a) of the Natural 

10 Gas Policy Act of 1978 (15 U.S.C. 3431(a)). 

11 (3) OFFICE.—The term ‘‘Office’’ means the Of12 fice of Consumer Advocacy established by subsection 

13 (b)(1). 

14 (4) PUBLIC UTILITY.—The term ‘‘public util15 ity’’ has the meaning given the term in section 

16 201(e) of the Federal Power Act (16 U.S.C. 824(e)). 

17 (5) SMALL COMMERCIAL CUSTOMER.—The term 

18 ‘‘small commercial customer’’ means a commercial 

19 customer that has a peak demand of not more than 

20 1,000 kilowatts per hour. 

21 (b) OFFICE.— 

22 (1) ESTABLISHMENT.—There is established 

23 within the Department the Office of Consumer Ad24 vocacy. 
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1 (2) DUTIES.—The Office may represent the in2 terests of energy customers on matters concerning 

3 rates or service of public utilities and natural gas 

4 companies under the jurisdiction of the Commis5 sion— 

6 (A) at hearings of the Commission; 

7 (B) in civil actions brought in connection 

8 with any function carried out by the Commis9 sion, except as provided in section 518 of title 

10 28, United States Code; and 

11 (C) at hearings or proceedings of other 

12 Federal regulatory agencies and commissions. 

13 SEC. 1269. AUTHORITY OF COURT TO PROHIBIT PERSONS 

14 FROM SERVING AS OFFICERS, DIRECTORS, 

15 AND ENERGY TRADERS. 

16 Section 314 of the Federal Power Act (16 U.S.C. 

17 825m) is amended by adding at the end the following: 

18 ‘‘(d) In any proceedings under subsection (a), the 

19 court may prohibit, conditionally or unconditionally, and 

20 permanently or for such period of time as the court deter21 mines, any person who is engaged or has engaged in prac22 tices constituting a violation of section 222 (and related 

23 rules and regulations) from— 

24 ‘‘(1) acting as an officer or director of an elec25 tric utility; or 
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1 ‘‘(2) engaging in the business of purchasing or 

2 selling— 

3 ‘‘(A) electric energy; or 

4 ‘‘(B) transmission services subject to the 

5 jurisdiction of the Commission.’’. 

6 SEC. 1270. RELIEF FOR EXTRAORDINARY VIOLATIONS. 

7 (a) APPLICATION.—This section applies to any con8 tract entered into the Western Interconnection prior to 

9 June 20, 2001, with a seller of wholesale electricity that 

10 the Commission has— 

11 (1) found to have manipulated the electricity 

12 market resulting in unjust and unreasonable rates; 

13 and 

14 (2) revoked the seller’s authority to sell any 

15 electricity at market-based rates. 

16 (b) RELIEF.—Notwithstanding section 222 of the 

17 Federal Power Act (as added by section 1262), any provi18 sion of title 11, United States Code, or any other provision 

19 of law, in the case of a contract described in subsection 

20 (a), the Commission shall have exclusive jurisdiction under 

21 the Federal Power Act (16 U.S.C. 791a et seq.) to deter22 mine whether a requirement to make termination pay23 ments for power not delivered by the seller, or any suc24 cessor in interest of the seller, is unlawful on the grounds 

25 that it is unjust and unreasonable. 
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1 (c) APPLICABILITY.—This section applies to any pro2 ceeding pending on the date of enactment of this section 

3 involving a seller described in subsection (a) in which there 

4 is not a final, nonappealable order by the Commission or 

5 any other jurisdiction determining the respective rights of 

6 the seller. 

7 Subtitle G—Repeal of PUHCA and 

8 Merger Reform 

9 SEC. 1271. SHORT TITLE. 

10 This subtitle may be cited as the ‘‘Public Utility 

11 Holding Company Act of 2005’’. 

12 SEC. 1272. DEFINITIONS. 

13 For purposes of this subtitle: 

14 (1) AFFILIATE.—The term ‘‘affiliate’’ of a com15 pany means any company, 5 percent or more of the 

16 outstanding voting securities of which are owned, 

17 controlled, or held with power to vote, directly or in18 directly, by such company. 

19 (2) ASSOCIATE COMPANY.—The term ‘‘associate 

20 company’’ of a company means any company in the 

21 same holding company system with such company. 

22 (3) COMMISSION.—The term ‘‘Commission’’ 

23 means the Federal Energy Regulatory Commission. 

24 (4) COMPANY.—The term ‘‘company’’ means a 

25 corporation, partnership, association, joint stock 
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1 company, business trust, or any organized group of 

2 persons, whether incorporated or not, or a receiver, 

3 trustee, or other liquidating agent of any of the fore4 going. 

5 (5) ELECTRIC UTILITY COMPANY.—The term 

6 ‘‘electric utility company’’ means any company that 

7 owns or operates facilities used for the generation, 

8 transmission, or distribution of electric energy for 

9 sale. 

10 (6) EXEMPT WHOLESALE GENERATOR AND

11 FOREIGN UTILITY COMPANY.—The terms ‘‘exempt 

12 wholesale generator’’ and ‘‘foreign utility company’’ 

13 have the same meanings as in sections 32 and 33, 

14 respectively, of the Public Utility Holding Company 

15 Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those 

16 sections existed on the day before the effective date 

17 of this subtitle. 

18 (7) GAS UTILITY COMPANY.—The term ‘‘gas 

19 utility company’’ means any company that owns or 

20 operates facilities used for distribution at retail 

21 (other than the distribution only in enclosed portable 

22 containers or distribution to tenants or employees of 

23 the company operating such facilities for their own 

24 use and not for resale) of natural or manufactured 

25 gas for heat, light, or power. 
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1 (8) HOLDING COMPANY.—The term ‘‘holding 

2 company’’ means— 

3 (A) any company that directly or indirectly 

4 owns, controls, or holds, with power to vote, 10 

5 percent or more of the outstanding voting secu6 rities of a public-utility company or of a holding 

7 company of any public-utility company; and 

8 (B) any person, determined by the Com9 mission, after notice and opportunity for hear10 ing, to exercise directly or indirectly (either 

11 alone or pursuant to an arrangement or under12 standing with 1 or more persons) such a con13 trolling influence over the management or poli14 cies of any public-utility company or holding 

15 company as to make it necessary or appropriate 

16 for the rate protection of utility customers with 

17 respect to rates that such person be subject to 

18 the obligations, duties, and liabilities imposed 

19 by this subtitle upon holding companies. 

20 (9) HOLDING COMPANY SYSTEM.—The term 

21 ‘‘holding company system’’ means a holding com22 pany, together with its subsidiary companies. 

23 (10) JURISDICTIONAL RATES.—The term ‘‘ju24 risdictional rates’’ means rates accepted or estab25 lished by the Commission for the transmission of 
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1 electric energy in interstate commerce, the sale of 

2 electric energy at wholesale in interstate commerce, 

3 the transportation of natural gas in interstate com4 merce, and the sale in interstate commerce of nat5 ural gas for resale for ultimate public consumption 

6 for domestic, commercial, industrial, or any other 

7 use. 

8 (11) NATURAL GAS COMPANY.—The term ‘‘nat9 ural gas company’’ means a person engaged in the 

10 transportation of natural gas in interstate commerce 

11 or the sale of such gas in interstate commerce for 

12 resale. 

13 (12) PERSON.—The term ‘‘person’’ means an 

14 individual or company. 

15 (13) PUBLIC UTILITY.—The term ‘‘public util16 ity’’ means any person who owns or operates facili17 ties used for transmission of electric energy in inter18 state commerce or sales of electric energy at whole19 sale in interstate commerce. 

20 (14) PUBLIC-UTILITY COMPANY.—The term 

21 ‘‘public-utility company’’ means an electric utility 

22 company or a gas utility company. 

23 (15) STATE COMMISSION.—The term ‘‘State 

24 commission’’ means any commission, board, agency, 

25 or officer, by whatever name designated, of a State, 
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1 municipality, or other political subdivision of a State 

2 that, under the laws of such State, has jurisdiction 

3 to regulate public utility companies. 

4 (16) SUBSIDIARY COMPANY.—The term ‘‘sub5 sidiary company’’ of a holding 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 1 or more other persons) so as to make it 

18 necessary for the rate protection of utility cus19 tomers with respect to rates that such person 

20 be subject to the obligations, duties, and liabil21 ities imposed by this subtitle upon subsidiary 

22 companies of holding companies. 

23 (17) VOTING SECURITY.—The term ‘‘voting se24 curity’’ means any security presently entitling the 
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1 owner or holder thereof to vote in the direction or 

2 management of the affairs of a company. 

3 SEC. 1273. 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. 1274. 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 determines 

12 are 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 determines are relevant to costs 

22 incurred by a public utility or natural gas company that 

23 is 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 determines are 

5 relevant to costs incurred by a public utility or natural 

6 gas company within such holding company system and 

7 necessary 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. 1275. STATE ACCESS TO BOOKS AND RECORDS. 

17 (a) IN GENERAL.—Upon the written request of a 

18 State commission having jurisdiction to regulate a public19 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 in 

25 a proceeding before the State commission; 
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1 (2) the State commission determines are rel2 evant to costs incurred by such public-utility com3 pany; and 

4 (3) are necessary for the effective discharge of 

5 the responsibilities of the State commission with re6 spect to such proceeding. 

7 (b) LIMITATION.—Subsection (a) does not apply to 

8 any person that is a holding company solely by reason of 

9 ownership of 1 or more qualifying facilities under the Pub10 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

11 2601 et seq.). 

12 (c) CONFIDENTIALITY OF INFORMATION.—The pro13 duction of books, accounts, memoranda, and other records 

14 under subsection (a) shall be subject to such terms and 

15 conditions as may be necessary and appropriate to safe16 guard against unwarranted disclosure to the public of any 

17 trade secrets or sensitive commercial information. 

18 (d) EFFECT ON STATE LAW.—Nothing in this sec19 tion shall preempt applicable State law concerning the pro20 vision of books, accounts, memoranda, and other records, 

21 or in any way limit the rights of any State to obtain books, 

22 accounts, memoranda, and other records under any other 

23 Federal law, contract, or otherwise. 

24 (e) COURT JURISDICTION.—Any United States dis25 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. 1276. EXEMPTION AUTHORITY. 

4 (a) RULEMAKING.—Not later than 90 days after the 

5 effective date of this subtitle, the Commission shall issue 

6 a final rule to exempt from the requirements of section 

7 1274 (relating to Federal access to books and records) any 

8 person that is a holding company, solely with respect to 

9 1 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 1274 (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. 1277. 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 

11 issuance 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. 1278. 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), (3), or (4) acting 

10 as such in the course of his or her official duty. 

11 SEC. 1279. 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. 1280. 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. 1281. SAVINGS PROVISIONS. 

21 (a) IN GENERAL.—Nothing in this subtitle, or other22 wise in the Public Utility Holding Company Act of 1935, 

23 or rules, regulations, or orders thereunder, prohibits a per24 son from engaging in or continuing to engage in activities 

25 or transactions in which it is legally engaged or authorized 
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1 to engage on the date of enactment of this Act, if that 

2 person continues to comply with the terms (other than an 

3 expiration date or termination date) of any such author4 ization, whether by rule or by order. 

5 (b) EFFECT ON OTHER COMMISSION AUTHORITY.— 

6 Nothing in this subtitle limits the authority of the Com7 mission under the Federal Power Act (16 U.S.C. 791a et 

8 seq.) or the Natural Gas Act (15 U.S.C. 717 et seq.). 

9 SEC. 1282. IMPLEMENTATION. 

10 Not later than 4 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 1275, relating to State access to 

15 books and records); and 

16 (2) submit to Congress detailed recommenda17 tions on technical and conforming amendments to 

18 Federal law necessary to carry out this subtitle and 

19 the amendments made by this subtitle. 

20 SEC. 1283. 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. 1284. EFFECTIVE DATE. 

2 (a) IN GENERAL.—Except for section 1282 (relating 

3 to implementation), this subtitle shall take effect 6 months 

4 after the date of enactment of this subtitle. 

5 (b) COMPLIANCE WITH CERTAIN RULES.—If the 

6 Commission approves and makes effective any final rule7 making modifying the standards of conduct governing en8 tities that own, operate, or control facilities for trans9 mission of electricity in interstate commerce or transpor10 tation of natural gas in interstate commerce prior to the 

11 effective date of this subtitle, any action taken by a public12 utility company or utility holding company to comply with 

13 the requirements of such rulemaking shall not subject 

14 such public-utility company or utility holding company to 

15 any regulatory requirement applicable to a holding com16 pany under the Public Utility Holding Company Act of 

17 1935 (15 U.S.C. 79 et seq.). 

18 SEC. 1285. SERVICE ALLOCATION. 

19 (a) FERC REVIEW.—In the case of non-power goods 

20 or administrative or management services provided by an 

21 associate company organized specifically for the purpose 

22 of providing such goods or services to any public utility 

23 in the same holding company system, at the election of 

24 the system or a State commission having jurisdiction over 

25 the public utility, the Commission, after the effective date 

26 of this subtitle, shall review and authorize the allocation 
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1 of the costs for such goods or services to the extent rel2 evant to that associate company in order to assure that 

3 each allocation is appropriate for the protection of inves4 tors and consumers of such public utility. 

5 (b) COST ALLOCATION.—Nothing in this section shall 

6 preclude the Commission or a State commission from exer7 cising its jurisdiction under other applicable law with re8 spect to the review or authorization of any costs allocated 

9 to a public utility in a holding company system located 

10 in the affected State as a result of the acquisition of non11 power goods or administrative and management services 

12 by such public utility from an associate company orga13 nized specifically for that purpose. 

14 (c) RULES.—Not later than 6 months after the date 

15 of enactment of this Act, the Commission shall issue rules 

16 (which rules shall be effective no earlier than the effective 

17 date of this subtitle) to exempt from the requirements of 

18 this section any company in a holding company system 

19 whose public utility operations are confined substantially 

20 to a single State and any other class of transactions that 

21 the Commission finds is not relevant to the jurisdictional 

22 rates of a public utility. 

23 (d) PUBLIC UTILITY.—As used in this section, the 

24 term ‘‘public utility’’ has the meaning given that term in 

25 section 201(e) of the Federal Power Act. 
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1 SEC. 1286. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such funds 

3 as may be necessary to carry out this subtitle. 

4 SEC. 1287. CONFORMING AMENDMENTS TO THE FEDERAL 

5 POWER ACT. 

6 (a) CONFLICT OF JURISDICTION.—Section 318 of the 

7 Federal Power Act (16 U.S.C. 825q) is repealed. 

8 (b) DEFINITIONS..—(1) Section 201(g)(5) of the 

9 Federal Power Act (16 U.S.C. 824(g)(5)) is amended by 

10 striking ‘‘1935’’ and inserting ‘‘2005’’. 

11 (2) Section 214 of the Federal Power Act (16 U.S.C. 

12 824m) is amended by striking ‘‘1935’’ and inserting 

13 ‘‘2005’’. 

14 SEC. 1288. MERGER REVIEW REFORM. 

15 (a) IN GENERAL.—Section 203(a) of the Federal 

16 Power Act (16 U.S.C. 824b(a)) is amended to read as fol17 lows: 

18 ‘‘(a)(1) No public utility shall, without first having 

19 secured an order of the Commission authorizing it to do 

20 so— 

21 ‘‘(A) sell, lease, or otherwise dispose of the 

22 whole of its facilities subject to the jurisdiction 

23 of the Commission, or any part thereof of a 

24 value in excess of $10,000,000; 

25 ‘‘(B) merge or consolidate, directly or indi26 rectly, such facilities or any part thereof with 
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1 those of any other person, by any means what2 soever; 

3 ‘‘(C) purchase, acquire, or take any secu4 rity with a value in excess of $10,000,000 of 

5 any other public utility; or 

6 ‘‘(D) purchase, lease, or otherwise acquire 

7 an existing generation facility— 

8 ‘‘(i) that has a value in excess of 

9 $10,000,000; and 

10 ‘‘(ii) that is used for interstate whole11 sale sales and over which the Commission 

12 has jurisdiction for ratemaking purposes. 

13 ‘‘(2) No holding company in a holding company 

14 system that includes a transmitting utility or an 

15 electric utility shall purchase, acquire, or take any 

16 security with a value in excess of $10,000,000 of, or, 

17 by any means whatsoever, directly or indirectly, 

18 merge or consolidate with, a transmitting utility, an 

19 electric utility company, or a gas utility company, or 

20 a holding company in a holding company system 

21 that includes a transmitting utility, an electric utility 

22 company, or a gas utility company with a value in 

23 excess of $10,000,000 without first having secured 

24 an order of the Commission authorizing it to do so. 
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1 ‘‘(3) Upon receipt of an application for such ap2 proval the Commission shall give reasonable notice 

3 in writing to the Governor and State commission of 

4 each of the States in which the physical property af5 fected, or any part thereof, is situated, and to such 

6 other persons as it may deem advisable. 

7 ‘‘(4) After notice and opportunity for hearing, 

8 the Commission shall approve the proposed disposi9 tion, consolidation, acquisition, or change in control, 

10 if it finds that the proposed transaction— 

11 ‘‘(A) will be consistent with the public in12 terest, taking into account the effect of the 

13 transaction on competition in the electricity 

14 markets, electric rates, and effective regulation; 

15 and 

16 ‘‘(B) shall not result in cross-subsidization 

17 of a non-utility associate company or the pledge 

18 or encumbrance of utility assets for the benefit 

19 of an associate company, unless the Commis20 sion determines that the cross-subsidization, 

21 pledge, or encumbrance would not be harmful. 

22 ‘‘(5) The Commission shall, by rule, adopt pro23 cedures for the expeditious consideration of applica24 tions for the approval of dispositions, consolidations, 

25 or acquisitions, under this section. Such rules shall 
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1 identify classes of transactions, or specify criteria for 

2 transactions, that normally meet the standards es3 tablished in paragraph (4). The Commission shall 

4 provide expedited review for such transactions. The 

5 Commission shall grant or deny any other applica6 tion for approval of a transaction not later than 180 

7 days after the application is filed. If the Commission 

8 does not act within 180 days, such application shall 

9 be deemed granted unless the Commission finds, 

10 based on good cause, that further consideration is 

11 required to determine whether the proposed trans12 action meets the standards of paragraph (4) and 

13 issues an order tolling the time for acting on the ap14 plication for not more than 180 days, at the end of 

15 which additional period the Commission shall grant 

16 or deny the application. 

17 ‘‘(6) For purposes of this subsection, the terms 

18 ‘associate company’, ‘holding company’, and ‘holding 

19 company system’ have the meaning given those 

20 terms in the Public Utility Holding Company Act of 

21 2005.’’. 

22 (b) EFFECTIVE DATE.—The amendments made by 

23 this section shall take effect 6 months after the date of 

24 enactment of this Act. 
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1 Subtitle H—Definitions 

2 SEC. 1291. DEFINITIONS. 

3 (a) COMMISSION.—In this title, the term ‘‘Commis4 sion’’ means the Federal Energy Regulatory Commission. 

5 (b) AMENDMENT.—Section 3 of the Federal Power 

6 Act (16 U.S.C. 796) is amended— 

7 (1) by striking paragraphs (22) and (23) and 

8 inserting the following: 

9 ‘‘(22) ELECTRIC UTILITY.—(A) The term ‘elec10 tric utility’ means a person or Federal or State 

11 agency (including an entity described in section 

12 201(f)) that sells electric energy. 

13 ‘‘(B) The term ‘electric utility’ includes the 

14 Tennessee Valley Authority and each Federal power 

15 marketing administration. 

16 ‘‘(23) TRANSMITTING UTILITY.—The term 

17 ‘transmitting utility’ means an entity (including an 

18 entity described in section 201(f)) that owns, oper19 ates, or controls facilities used for the transmission 

20 of electric energy— 

21 ‘‘(A) in interstate commerce; 

22 ‘‘(B) for the sale of electric energy at 

23 wholesale.’’; and 

24 (2) by adding at the end the following: 
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1 ‘‘(26) ELECTRIC COOPERATIVE.—The term 

2 ‘electric cooperative’ means a cooperatively owned 

3 electric utility. 

4 ‘‘(27) RTO.—The term ‘Regional Transmission 

5 Organization’ or ‘RTO’ means an entity of sufficient 

6 regional scope approved by the Commission— 

7 ‘‘(A) to exercise operational or functional 

8 control of facilities used for the transmission of 

9 electric energy in interstate commerce; and 

10 ‘‘(B) to ensure nondiscriminatory access to 

11 the facilities. 

12 ‘‘(28) ISO.—The term ‘Independent System 

13 Operator’ or ‘ISO’ means an entity approved by the 

14 Commission— 

15 ‘‘(A) to exercise operational or functional 

16 control of facilities used for the transmission of 

17 electric energy in interstate commerce; and 

18 ‘‘(B) to ensure nondiscriminatory access to 

19 the facilities. 

20 ‘‘(29) TRANSMISSION ORGANIZATION.—The 

21 term ‘Transmission Organization’ means a Regional 

22 Transmission Organization, Independent System Op23 erator, independent transmission provider, or other 

24 transmission organization finally approved by the 
717 

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1 Commission for the operation of transmission facili2 ties.’’. 

3 (c) APPLICABILITY.—Section 201(f) of the Federal 

4 Power Act (16 U.S.C. 824(f)) is amended by striking ‘‘po5 litical subdivision of a state,’’ and inserting ‘‘political sub6 division of a State, an electric cooperative that receives 

7 financing under the Rural Electrification Act of 1936 (7 

8 U.S.C. 901 et seq.) or that sells less than 4,000,000 mega9 watt hours of electricity per year,’’. 

10 Subtitle I—Technical and 

11 Conforming Amendments 

12 SEC. 1295. CONFORMING AMENDMENTS. 

13 (a) Section 201 of the Federal Power Act (16 U.S.C. 

14 824) is amended— 

15 (1) in subsection (b)(2)— 

16 (A) in the first sentence— 

17 (i) by striking ‘‘The’’ and inserting 

18 ‘‘Notwithstanding section 201(f), the’’; and 

19 (ii) by striking ‘‘210, 211, and 212’’ 

20 and inserting ‘‘203(a)(2), 206(e), 210, 

21 211, 211A, 212, 215, 216, 217, 218, 219, 

22 220, 221, 222, and 223’’; and 

23 (B) in the second sentence— 

24 (i) by inserting ‘‘or rule’’ after ‘‘any 

25 order’’; and 
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1 (ii) by striking ‘‘210 or 211’’ and in2 serting ‘‘203(a)(2), 206(e), 210, 211, 

3 211A, 212, 215, 216, 217, 218, 219, 220, 

4 221, 222, or 223’’; and 

5 (2) in subsection (e), by striking ‘‘210, 211, or 

6 212’’ and inserting ‘‘206(e), 206(f), 210, 211, 211A, 

7 212, 215, 216, 217, 218, 219, 220, 221, 222, or 

8 223’’. 

9 (b) Section 206 of the Federal Power Act (16 U.S.C. 

10 824e) is amended— 

11 (1) in the first sentence of subsection (a), by 

12 striking ‘‘hearing had’’ and inserting ‘‘hearing held’’; 

13 and 

14 (2) in the seventh sentence of subsection (b), by 

15 striking ‘‘the public utility to make’’. 

16 (c) Section 211 of the Federal Power Act (16 U.S.C. 

17 824j) is amended— 

18 (1) in subsection (c)— 

19 (A) by striking ‘‘(2)’’; 

20 (B) by striking ‘‘(A)’’ and inserting ‘‘(1)’’ 

21 (C) by striking ‘‘(B)’’ and inserting ‘‘(2)’’; 

22 and 

23 (D) by striking ‘‘termination of modifica24 tion’’ and inserting ‘‘termination or modifica25 tion’’; and 
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•S 10 PCS 

1 (2) in the second sentence of subsection (d)(1), 

2 by striking ‘‘electric utility’’ the second place it ap3 pears and inserting ‘‘transmitting utility’’. 

4 (d) Section 315(c) of the Federal Power Act (16 

5 U.S.C. 825n(c)) is amended by striking ‘‘subsection’’ and 

6 inserting ‘‘section’’. 

7 TITLE XIII—STUDIES 

8 SEC. 1301. ENERGY AND WATER SAVING MEASURES IN CON9 GRESSIONAL BUILDINGS. 

10 (a) IN GENERAL.—The Architect of the Capitol, 

11 building on the Master Plan Study for the Capitol complex 

12 completed in July 2000, shall commission a study to 

13 evaluate the energy infrastructure of the Capitol complex 

14 to determine how to augment the infrastructure to become 

15 more energy efficient— 

16 (1) by using unconventional and renewable en17 ergy resources; and 

18 (2) in a manner that would enable the Capitol 

19 complex to have reliable utility service in the event 

20 of power fluctuations, shortages, or outages. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There is 

22 authorized to be appropriated to the Architect of the Cap23 itol to carry out this section $2,000,000 for each of fiscal 

24 years 2006 through 2010. 
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1 SEC. 1302. INCREASED HYDROELECTRIC GENERATION AT 

2 EXISTING FEDERAL FACILITIES. 

3 (a) STUDY.— 

4 (1) IN GENERAL.—The Secretary and the Sec5 retary of the Interior, in consultation with the Sec6 retary of the Army, shall conduct a study of the po7 tential for increasing electric power production capa8 bility, in accordance with applicable law, at federally 

9 owned or operated water regulation, storage, and 

10 conveyance facilities. 

11 (2) CONTENTS.—The study under paragraph 

12 (1) shall include an identification and detailed de13 scription of each facility that is capable, with or 

14 without modification, of producing additional hydro15 electric power, including an estimate of the potential 

16 of the facility to generate hydroelectric power. 

17 (b) REPORT.— 

18 (1) IN GENERAL.—Not later than 18 months 

19 after the date of enactment of this Act, the Secre20 taries shall submit to the Committee on Energy and 

21 the Committee on Commerce, Resources, Transpor22 tation and Infrastructure of the House of Represent23 atives, and the Committee on Energy and Natural 

24 Resources of the Senate, a report describing the 

25 findings, conclusions, and recommendations of the 

26 study under subsection (a). 
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1 (2) INCLUSIONS.—The report under paragraph 

2 (1) shall include— 

3 (A) each identification, description, and es4 timate under subsection (a)(2); 

5 (B) a description of any activity that is 

6 conducted or under consideration, or that could 

7 be considered, to produce additional hydro8 electric power at an identified facility; 

9 (C) a summary of actions taken by the 

10 Secretaries before the date on which the study 

11 was completed to produce additional hydro12 electric power at an identified facility; 

13 (D) a calculation of— 

14 (i) the costs of installing, upgrading, 

15 modifying, or taking any other action re16 lating to, equipment to produce additional 

17 hydroelectric power at an identified facil18 ity; and 

19 (ii) the level of involvement of Federal 

20 power customers in the determination of 

21 the costs; 

22 (E) a description of any benefit to be 

23 achieved by an installation, upgrade, modifica24 tion, or other action under subparagraph (D), 

25 including a quantified estimate of any addi-
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•S 10 PCS 

1 tional energy or capacity produced at an identi2 fied facility; 

3 (F) a description of any action that is 

4 planned, is being carried out on the date on 

5 which the report is submitted, or might reason6 ably be considered to increase hydroelectric 

7 power production by replacing turbine runners, 

8 upgrading or rewinding generators, or con9 structing pumped storage facilities; 

10 (G) a description of the effect of increased 

11 hydroelectric power production on— 

12 (i) irrigation; 

13 (ii) fish; 

14 (iii) wildlife; 

15 (iv) Indian land; 

16 (v) river health; 

17 (vi) water quality; 

18 (vii) navigation; 

19 (viii) recreation; 

20 (ix) fishing; and 

21 (x) flood control; and 

22 (H) any additional recommendations of the 

23 Secretaries to increase hydroelectric power pro24 duction, and reduce costs and improve effi25 ciency, in accordance with applicable law, at 
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1 federally owned or operated water regulation, 

2 storage, and conveyance facilities. 

3 SEC. 1303. ALASKA NATURAL GAS PIPELINE. 

4 Not later than 180 days after the date of enactment 

5 of this Act, and every 180 days thereafter until the Alaska 

6 natural gas pipeline commences operation, the Federal 

7 Energy Regulatory Commission shall submit to Congress 

8 a report describing— 

9 (1) the progress made in licensing and con10 structing the pipeline; and 

11 (2) any issue impeding that progress. 

12 SEC. 1304. RENEWABLE ENERGY ON FEDERAL LAND. 

13 (a) NATIONAL ACADEMY OF SCIENCES STUDY.—Not 

14 later than 90 days after the date of enactment of this Act, 

15 the Secretary of the Interior shall enter into a contract 

16 with the National Academy of Sciences under which the 

17 National Academy of Sciences shall— 

18 (1) study the potential of developing wind, 

19 solar, and ocean energy resources (including tidal, 

20 wave, and thermal energy) on Federal land available 

21 for those uses under current law and the outer Con22 tinental Shelf; 

23 (2) assess any Federal law (including regula24 tions) relating to the development of those resources 
724 

•S 10 PCS 

1 that is in existence on the date of enactment of this 

2 Act; and 

3 (3) recommend statutory and regulatory mecha4 nisms for developing those resources. 

5 (b) SUBMISSION TO CONGRESS.—Not later than 2 

6 years after the date of enactment of this Act, the Sec7 retary of the Interior shall submit to Congress the results 

8 of the study under subsection (a). 

9 SEC. 1305. COAL BED METHANE STUDY. 

10 (a) STUDY.— 

11 (1) IN GENERAL.—The Secretary of the Inte12 rior shall enter into an arrangement under which the 

13 National Academy of Sciences shall conduct a study 

14 on the effect of coalbed natural gas production on 

15 surface and ground water resources, including 

16 ground water aquifiers, in the States of Montana, 

17 Wyoming, Colorado, New Mexico, North Dakota, 

18 and Utah. 

19 (2) MATTERS TO BE ADDRESSED.—The study 

20 shall address the effectiveness of— 

21 (A) the management of coal bed methane 

22 produced water; 

23 (B) the use of best management practices; 

24 and 
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1 (C) various production techniques for coal 

2 bed methane natural gas in minimizing impacts 

3 on water resources. 

4 (b) DATA ANALYSIS.—The study shall analyze avail5 able hydrologic, geologic and water quality data, along 

6 with— 

7 (1) production techniques, produced water man8 agement techniques, best management practices, and 

9 other factors that can mitigate effects of coal bed 

10 methane development; 

11 (2) the costs associated with mitigation tech12 niques; 

13 (3) effects on surface or ground water re14 sources, including drinking water, associated with 

15 surface or subsurface disposal of waters produced 

16 during extraction of coal bed methane; and 

17 (4) any other significant effects on surface or 

18 ground water resources associated with production 

19 of coal-bed methane. 

20 (c) RECOMMENDATIONS.—The study shall analyze 

21 the effectiveness of current mitigation practices of coal bed 

22 methane produced water handling in relation to existing 

23 Federal and State laws and regulations, and make rec24 ommendations as to changes, if any, to Federal law nec25 essary to address adverse impacts to surface or ground 
726 

•S 10 PCS 

1 water resources associated with coal bed methane develop2 ment. 

3 (d) COMPLETION OF STUDY.—The National Acad4 emy of Sciences shall submit the findings and rec5 ommendations of the study to the Secretary of the Interior 

6 within 12 months after the date of enactment of this Act, 

7 and shall upon completion make the results of the study 

8 available to the public. 

9 (e) REPORT TO CONGRESS.—The Secretary of the In10 terior shall report to the Congress within 6 months after 

11 receiving the results of the study on— 

12 (1) the findings and recommendations of the 

13 study; 

14 (2) the Secretary’s agreement or disagreement 

15 with each of its findings and recommendations; and 

16 (3) any recommended changes in funding to ad17 dress the effects of coal bed methane production on 

18 surface and ground water resources. 

19 SEC. 1306. BACKUP FUEL CAPABILITY STUDY. 

20 (a) STUDY.— 

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

22 a study of the effect of obtaining and maintaining 

23 liquid and other fuel backup capability at— 

24 (A) gas-fired power generation facilities; 

25 and 
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•S 10 PCS 

1 (B) other gas-fired industrial facilities. 

2 (2) CONTENTS.—The study under paragraph 

3 (1) shall address— 

4 (A) the costs and benefits of adding a dif5 ferent fuel capability to a power gas-fired power 

6 generating or industrial facility, taking into 

7 consideration regional differences; 

8 (B) methods of the Federal Government 

9 and State governments to encourage gas-fired 

10 power generators and industries to develop the 

11 capability to power the facilities using a backup 

12 fuel; 

13 (C) the effect on the supply and cost of 

14 natural gas of— 

15 (i) a balanced portfolio of fuel choices 

16 in power generation and industrial applica17 tions; and 

18 (ii) State regulations that permit 

19 agencies in the State to carry out policies 

20 that encourage the use of other backup 

21 fuels in gas-fired power generation; and 

22 (D) changes required in the Clean Air Act 

23 (42 U.S.C. 7401 et seq.) to allow natural gas 

24 generators to add clean backup fuel capabilities. 
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•S 10 PCS 

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

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

3 submit to Congress a report on the results of the study 

4 under subsection (a), including recommendations regard5 ing future activity of the Federal Government relating to 

6 backup fuel capability. 

7 SEC. 1307. INDIAN LAND RIGHTS-OF-WAY. 

8 (a) STUDY.— 

9 (1) IN GENERAL.—The Secretary and the Sec10 retary of the Interior (referred to in this section as 

11 the ‘‘Secretaries’’) shall jointly conduct a study of 

12 issues regarding energy rights-of-way on tribal land 

13 (as defined in section 2601 of the Energy Policy Act 

14 of 1992 (as amended by section 503)) (referred to 

15 in this section as ‘‘tribal land’’). 

16 (2) CONSULTATION.—In conducting the study 

17 under paragraph (1), the Secretaries shall consult 

18 with Indian tribes, the energy industry, appropriate 

19 governmental entities, and affected businesses and 

20 consumers. 

21 (b) REPORT.—Not later than 1 year after the date 

22 of enactment of this Act, the Secretaries shall submit to 

23 Congress a report on the findings of the study, includ24 ing— 
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•S 10 PCS 

1 (1) an analysis of historic rates of compensation 

2 paid for energy rights-of-way on tribal land; 

3 (2) recommendations for appropriate standards 

4 and procedures for determining fair and appropriate 

5 compensation to Indian tribes for grants, expan6 sions, and renewals of energy rights-of-way on tribal 

7 land; 

8 (3) an assessment of the tribal self-determina9 tion and sovereignty interests implicated by applica10 tions for the grant, expansion, or renewal of energy 

11 rights-of-way on tribal land; and 

12 (4) an analysis of relevant national energy 

13 transportation policies relating to grants, expan14 sions, and renewals of energy rights-of-way on tribal 

15 land. 

16 SEC. 1308. REVIEW OF ENERGY POLICY ACT OF 1992 PRO17 GRAMS. 

18 (a) IN GENERAL.—Not later than 180 days after the 

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

20 a study to determine the effect that titles III, IV, and V 

21 of the Energy Policy Act of 1992 (42 U.S.C. 13211 et 

22 seq.) have had during the period beginning on the date 

23 of enactment of those titles and ending on the date on 

24 which the study begins on— 
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•S 10 PCS 

1 (1) the development of alternative fueled vehicle 

2 technology; 

3 (2) the availability of that technology in the 

4 market; and 

5 (3) the cost of alternative fueled vehicles. 

6 (b) TOPICS.—In conducting the study under sub7 section (a), the Secretary shall identify— 

8 (1) the number of alternative fueled vehicles ac9 quired by fleets or covered persons required to ac10 quire alternative fueled vehicles; 

11 (2) the quantity, by type, of alternative fuel 

12 used in alternative fueled vehicles acquired by fleets 

13 or covered persons; 

14 (3) the quantity of petroleum displaced by the 

15 use of alternative fuels in alternative fueled vehicles 

16 acquired by fleets or covered persons; 

17 (4) the direct and indirect costs of compliance 

18 with requirements under titles III, IV, and V of the 

19 Energy Policy Act of 1992 (42 U.S.C. 13211 et 

20 seq.), including— 

21 (A) vehicle acquisition requirements im22 posed on fleets or covered persons; 

23 (B) administrative and recordkeeping ex24 penses; 

25 (C) fuel and fuel infrastructure costs; 
731 

•S 10 PCS 

1 (D) associated training and employee ex2 penses; and 

3 (E) any other factors or expenses the Sec4 retary determines to be necessary to compile re5 liable estimates of the overall costs and benefits 

6 of complying with programs under those titles 

7 for fleets, covered persons, and the national 

8 economy; 

9 (5) the existence of obstacles preventing compli10 ance with vehicle acquisition requirements and in11 creased use of alternative fuel in alternative fueled 

12 vehicles acquired by fleets or covered persons; and 

13 (6) the projected impact of amendments to the 

14 Energy Policy Act of 1992 made by this Act. 

15 (c) REPORT.—On the date on which the study under 

16 subsection (a) is completed, the Secretary shall submit to 

17 Congress a report that— 

18 (1) describes the results of the study; and 

19 (2) includes any recommendations of the Sec20 retary for legislative or administrative changes con21 cerning the alternative fueled vehicle requirements 

22 under titles III, IV and V of the Energy Policy Act 

23 of 1992 (42 U.S.C. 13211 et seq.). 
732 

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1 SEC. 1309. STUDY OF FEASIBILITY AND EFFECTS OF RE2 DUCING USE OF FUEL FOR AUTOMOBILES. 

3 (a) STUDY.— 

4 (1) IN GENERAL.—Not later than 30 days after 

5 the date of the enactment of this Act, the Adminis6 trator of the National Highway Traffic Safety Ad7 ministration shall conduct a study of the feasibility 

8 and effects of reducing, by a significant percentage, 

9 by model year 2012, the amount of fuel consumed 

10 by automobiles. 

11 (2) INCLUSIONS.—The study under paragraph 

12 (1) shall include an examination of— 

13 (A) the Federal policy of establishing aver14 age fuel economy standards for automobiles and 

15 requiring each automobile manufacturer to 

16 comply with average fuel economy standards 

17 that apply to the automobiles the manufacturer 

18 produces (including recommendations of alter19 natives to that policy); 

20 (B) methods by which automobile manu21 facturers could contribute toward achieving the 

22 reduction described in paragraph (1); 

23 (C) the potential of using fuel cell tech24 nology in motor vehicles to determine the extent 

25 to which fuel cell technology contributes to 
733 

•S 10 PCS 

1 achieving the reduction described in paragraph 

2 (1); and 

3 (D) the effects of the reduction described 

4 in paragraph (1) on— 

5 (i) gasoline supplies; 

6 (ii) the automobile industry, including 

7 sales of automobiles manufactured in the 

8 United States; 

9 (iii) motor vehicle safety; 

10 (iv) air quality; and 

11 (v) the consumer price for light duty 

12 trucks typically purchased for agricultural 

13 purposes, including by providing estimates 

14 for price differences for the years 2008 

15 through 2012, comparing— 

16 (I) light duty truck fuel economy 

17 if no legislative changes are made to 

18 average fuel economy standards; to 

19 (II) light duty truck fuel econ20 omy under the reduction described in 

21 paragraph (1). 

22 (b) REPORT.—Not later than 1 year after the date 

23 of enactment of this Act, the Administrator shall submit 

24 to Congress a report on the findings, conclusions, and rec25 ommendations of the study under subsection (a). 
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1 SEC. 1310. HYBRID DISTRIBUTED POWER SYSTEMS. 

2 Not later than 1 year after the date of enactment 

3 of this Act, the Secretary shall develop, and submit to 

4 Congress a report on, a strategy for a comprehensive re5 search, development, demonstration, and commercial ap6 plication program to develop hybrid distributed power sys7 tems that combine— 

8 (1) 1 or more renewable electric power genera9 tion technologies of 10 megawatts or less located 

10 near the site of electric energy use; and 

11 (2) nonintermittent electric power generation 

12 technologies suitable for use in a distributed power 

13 system. 

14 SEC. 1311. MOBILITY OF SCIENTIFIC AND TECHNICAL PER15 SONNEL. 

16 Not later than 2 years after the date of enactment 

17 of this section, the Secretary shall transmit to Congress 

18 a report that— 

19 (1) identifies any policies or procedures of a 

20 contractor operating a National Laboratory or sin21 gle-purpose research facility that create disincentives 

22 to the temporary or permanent transfer of scientific 

23 and technical personnel among the contractor-oper24 ated National Laboratories or contractor-operated 

25 single-purpose research facilities; and 
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•S 10 PCS 

1 (2) provides recommendations for improving 

2 interlaboratory exchange of scientific and technical 

3 personnel. 

4 SEC. 1312. NATIONAL ACADEMY OF SCIENCES REPORT. 

5 Not later than 90 days after the date of enactment 

6 of this Act, the Secretary shall enter into an arrangement 

7 with the National Academy of Sciences for the Academy 

8 to— 

9 (1) conduct a study on— 

10 (A) the obstacles to accelerating the re11 search, development, demonstration, and com12 mercial application cycle for energy technology; 

13 and 

14 (B) the adequacy of Department policies 

15 and procedures for, and oversight of, technology 

16 transfer-related disputes between contractors of 

17 the Department and the private sector; and 

18 (2) report to Congress on recommendations de19 veloped as a result of the study. 

20 SEC. 1313. REPORT ON RESEARCH AND DEVELOPMENT 

21 PROGRAM EVALUATION METHODOLOGIES. 

22 (a) IN GENERAL.—Not later than 180 days after the 

23 date of enactment of this Act, the Secretary shall enter 

24 into appropriate arrangements with the National Academy 

25 of Sciences to investigate and report on the scientific and 
736 

•S 10 PCS 

1 technical merits of any evaluation methodology currently 

2 in use or proposed for use in relation to the scientific and 

3 technical programs of the Department by the Secretary 

4 or other Federal official. 

5 (b) REPORT.—Not later than 180 days after receiv6 ing the report of the National Academy of Sciences, the 

7 Secretary shall submit to Congress a report, along with 

8 any other views or plans of the Secretary with respect to 

9 the future use of the evaluation methodology. 

10 SEC. 1314. TRANSMISSION SYSTEM MONITORING STUDY. 

11 (a) IN GENERAL.—Not later than 180 days after the 

12 date of enactment of this Act, the Secretary and the 

13 Chairperson of the Federal Energy Regulatory Commis14 sion shall conduct a study, and submit to Congress a re15 port, on any action the Secretary determines to be nec16 essary to establish a system that makes available to all 

17 transmission system owners and regional transmission or18 ganizations in the Eastern and Western Interconnections 

19 real-time information on the functional status of all trans20 mission lines within those Interconnections. 

21 (b) INCLUSIONS.—The study under this section shall 

22 include— 

23 (1) an assessment of any technical method of 

24 implementing the information transmission system 

25 described in subsection (a); and 
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•S 10 PCS 

1 (2) an identification of any action the Secretary 

2 and the Chairperson shall carry out to implement 

3 the information transmission system. 

4 SEC. 1315. INTERAGENCY REVIEW OF COMPETITION IN THE 

5 WHOLESALE AND RETAIL MARKETS FOR 

6 ELECTRIC ENERGY. 

7 (a) TASK FORCE.—There is established an inter8 agency task force, to be known as the ‘‘Electric Energy 

9 Market Competition Task Force’’ (referred to in this sec10 tion as the ‘‘task force’’), consisting of 5 members— 

11 (1) 1 of whom shall be an employee of the De12 partment of Justice, to be appointed by the Attorney 

13 General of the United States; 

14 (2) 1 of whom shall be an employee of the Fed15 eral Energy Regulatory Commission, to be appointed 

16 by the Chairperson of that Commission; 

17 (3) 1 of whom shall be an employee of the Fed18 eral Trade Commission, to be appointed by the 

19 Chairperson of that Commission; 

20 (4) 1 of whom shall be an employee of the De21 partment, to be appointed by the Secretary; and 

22 (5) 1 of whom shall be an employee of the 

23 Rural Utilities Service, to be appointed by the Sec24 retary of Agriculture. 

25 (b) STUDY AND REPORT.— 
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1 (1) STUDY.—The task force shall conduct a 

2 study and analysis of competition within the whole3 sale and retail market for electric energy in the 

4 United States. 

5 (2) REPORT.— 

6 (A) FINAL REPORT.—Not later than 1 

7 year after the date of enactment of this Act, the 

8 task force shall submit to Congress a final re9 port on the findings of the task force under 

10 paragraph (1). 

11 (B) PUBLIC COMMENT.—Not later than 

12 the date that is 60 days before a final report 

13 is submitted to Congress under subparagraph 

14 (A), the task force shall— 

15 (i) publish in the Federal Register a 

16 draft of the report; and 

17 (ii) provide an opportunity for public 

18 comment on the report. 

19 (c) CONSULTATION.—In conducting the study under 

20 subsection (b), the task force shall consult with and solicit 

21 comments from any advisory entity of the task force, the 

22 States, representatives of the electric power industry, and 

23 the public. 
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1 SEC. 1316. STUDY ON THE BENEFITS OF ECONOMIC DIS2 PATCH. 

3 (a) DEFINITION OF ECONOMIC DISPATCH.—In this 

4 section, the term ‘‘economic dispatch’’ means the oper5 ation of a generation facility to produce energy at the low6 est cost in order to reliably serve consumers, taking into 

7 consideration any operational limit of a generation or 

8 transmission facility. 

9 (b) STUDY.—The Secretary, in coordination and con10 sultation with the States, shall conduct a study of— 

11 (1) the procedures currently used by electric 

12 utilities to carry out economic dispatch; 

13 (2) possible revisions to those procedures to im14 prove the ability of nonutility generation resources 

15 to offer the output of the resources for sale for in16 clusion in economic dispatch; and 

17 (3) the potential benefits to residential, com18 mercial, and industrial electricity consumers, nation19 ally and in each State, of revising economic dispatch 

20 procedures to improve the ability of nonutility gen21 eration resources to offer the output of the resources 

22 for inclusion in economic dispatch. 

23 (c) REPORT TO CONGRESS AND THE STATES.—Not 

24 later than 90 days after the date of enactment of this Act, 

25 and annually thereafter, the Secretary shall submit to 

26 Congress and each State a report describing the results 
740 

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1 of the study under subsection (b), including recommenda2 tions of the Secretary for such legislative and administra3 tive actions as the Secretary determines to be appropriate. 

4 SEC. 1317. STUDY OF RAPID ELECTRICAL GRID RESTORA5 TION. 

6 (a) STUDY.— 

7 (1) IN GENERAL.—The Secretary shall conduct 

8 a study of the benefits of using mobile transformers 

9 and mobile substations to rapidly restore electrical 

10 service to areas subjected to blackouts as a result 

11 of— 

12 (A) equipment failure; 

13 (B) natural disasters; 

14 (C) acts of terrorism; or 

15 (D) war. 

16 (2) CONTENTS.—The study under paragraph 

17 (1) shall contain an analysis of— 

18 (A) the feasibility of using mobile trans19 formers and mobile substations to reduce de20 pendence on foreign entities for key elements of 

21 the electrical grid system of the United States; 

22 (B) the feasibility of using mobile trans23 formers and mobile substations to rapidly re24 store electrical power to— 

25 (i) military bases; 
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1 (ii) the Federal Government; 

2 (iii) communications industries; 

3 (iv) first responders; and 

4 (v) other critical infrastructures, as 

5 determined by the Secretary; 

6 (C) the quantity of mobile transformers 

7 and mobile substations necessary— 

8 (i) to eliminate dependence on foreign 

9 sources for key electrical grid components 

10 in the United States; 

11 (ii) to rapidly deploy technology to 

12 fully restore full electrical service to 

13 prioritized Governmental functions; and 

14 (iii) to identify manufacturing sources 

15 in existence on the date of enactment of 

16 this Act that have previously manufactured 

17 specialized mobile transformer or mobile 

18 substation products for Federal agencies. 

19 (b) REPORT.— 

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

21 the date of enactment of this Act, the Secretary 

22 shall submit to the President and Congress a report 

23 on the study under subsection (a). 
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1 (2) INCLUSION.—The report shall include a de2 scription of the results of the analysis under sub3 section (a)(2). 

4 SEC. 1318. STUDY OF DISTRIBUTED GENERATION. 

5 (a) STUDY.— 

6 (1) IN GENERAL.— 

7 (A) POTENTIAL BENEFITS.—The Sec8 retary, in consultation with the Federal Power 

9 Commission, shall conduct a study of the poten10 tial benefits of cogeneration and small power 

11 production. 

12 (B) RECIPIENTS.—The benefits described 

13 in subparagraph (A) include benefits that are 

14 received directly or indirectly by— 

15 (i) an electricity distribution or trans16 mission service provider; 

17 (ii) other customers served by an elec18 tricity distribution or transmission service 

19 provider; and 

20 (iii) the general public in the area 

21 served by the public utility in which the co22 generator or small power producer is lo23 cated. 

24 (2) INCLUSIONS.—The study shall include an 

25 analysis of— 
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1 (A) the potential benefits of— 

2 (i) increased system reliability; 

3 (ii) improved power quality; 

4 (iii) the provision of ancillary services; 

5 (iv) reduction of peak power require6 ments through onsite generation; 

7 (v) the provision of reactive power or 

8 volt-ampere reactives; 

9 (vi) an emergency supply of power; 

10 (vii) offsets to investments in genera11 tion, transmission, or distribution facilities 

12 that would otherwise be recovered through 

13 rates; 

14 (viii) diminished land use effects and 

15 right-of-way acquisition costs; and 

16 (ix) reducing the vulnerability of a 

17 system to terrorism; and 

18 (B) any rate-related issue that may impede 

19 or otherwise discourage the expansion of cogen20 eration and small power production facilities, 

21 including a review of whether rates, rules, or 

22 other requirements imposed on the facilities are 

23 comparable to rates imposed on customers of 

24 the same class that do not have cogeneration or 

25 small power production. 
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1 (3) VALUATION OF BENEFITS.—In carrying out 

2 the study, the Secretary shall determine an appro3 priate method of valuing potential benefits under 

4 varying circumstances for individual cogeneration or 

5 small power production units. 

6 (b) REPORT.—Not later than 18 months after the 

7 date of enactment of this Act, the Secretary shall— 

8 (1) complete the study; 

9 (2) provide an opportunity for public comment 

10 on the results of the study; and 

11 (3) submit to the President and Congress a re12 port describing— 

13 (A) the results of the study; and 

14 (B) information relating to the public com15 ments received under paragraph (2). 

16 (c) PUBLICATION.—After submission of the report 

17 under subsection (b) to the President and Congress, the 

18 Secretary shall publish the report. 

19 SEC. 1319. STUDY ON INVENTORY OF PETROLEUM AND 

20 NATURAL GAS STORAGE. 

21 (a) DEFINITION OF PETROLEUM.—In this section, 

22 the term ‘‘petroleum’’ means— 

23 (1) crude oil; 

24 (2) motor gasoline; 

25 (3) jet fuel; 
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1 (4) distillates; and 

2 (5) propane. 

3 (b) STUDY.— 

4 (1) IN GENERAL.—The Secretary shall conduct 

5 a study of petroleum and natural gas storage capac6 ity and operational inventory levels, nationwide and 

7 by major geographical regions. 

8 (2) INCLUSIONS.—The study shall include an 

9 analysis of, for petroleum and natural gas— 

10 (A) historical normal ranges of inventory 

11 levels; 

12 (B) historical and projected storage capac13 ity trends; 

14 (C) estimated operation inventory levels 

15 below which outages, delivery slowdown, ration16 ing, interruptions in service, or other indicators 

17 of shortage begin to appear; 

18 (D) explanations for inventory levels drop19 ping below normal ranges; and 

20 (E) the ability of industry to meet the de21 mand of the United States for petroleum and 

22 natural gas without shortages or price spikes, if 

23 inventory levels are below normal ranges. 
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1 (c) REPORT.—Not later than 1 year after the date 

2 of enactment of this Act, the Secretary shall submit to 

3 Congress a report on the results of the study, including— 

4 (1) the findings of the study; and 

5 (2) any recommendations of the Secretary for 

6 preventing future supply shortages. 

7 SEC. 1320. NATURAL GAS SUPPLY SHORTAGE REPORT. 

8 (a) IN GENERAL.—Not later than 180 days after the 

9 date of enactment of this Act, the Secretary shall submit 

10 to Congress a report on natural gas supplies and demand. 

11 (b) PURPOSE.—The purpose of the report under sub12 section (a) is to develop recommendations for achieving 

13 a balance between natural gas supply and demand in order 

14 to— 

15 (1) provide residential consumers with natural 

16 gas at reasonable and stable prices; 

17 (2) accommodate long-term maintenance and 

18 growth of domestic natural gas-dependent industrial, 

19 manufacturing, and commercial enterprises; 

20 (3) facilitate the attainment of national ambient 

21 air quality standards under the Clean Air Act (43 

22 U.S.C. 7401 et seq.); 

23 (4) achieve continued progress in reducing the 

24 emissions associated with electric power generation; 

25 and 
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1 (5) support the development of the preliminary 

2 phases of hydrogen-based energy technologies. 

3 (c) COMPREHENSIVE ANALYSIS.—The report shall 

4 include a comprehensive analysis of, for the period begin5 ning on January 1, 2004, and ending on December 31, 

6 2015, natural gas supply and demand in the United 

7 States, including— 

8 (1) estimates of annual domestic demand for 

9 natural gas, taking into consideration the effect of 

10 Federal policies and actions that are likely to in11 crease or decrease the demand for natural gas; 

12 (2) projections of annual natural gas supplies, 

13 from domestic and foreign sources, under Federal 

14 policies in existence on the date of enactment of this 

15 Act; 

16 (3) an identification of estimated natural gas 

17 supplies that are not available under those Federal 

18 policies; 

19 (4) scenarios for decreasing natural gas demand 

20 and increasing natural gas supplies that compare 

21 the relative economic and environmental impacts of 

22 Federal policies that— 

23 (A) encourage or require the use of natural 

24 gas to meet air quality, carbon dioxide emission 

25 reduction, or energy security goals; 
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1 (B) encourage or require the use of energy 

2 sources other than natural gas, including coal, 

3 nuclear, and renewable sources; 

4 (C) support technologies to develop alter5 native sources of natural gas and synthetic gas, 

6 including coal gasification technologies; 

7 (D) encourage or require the use of energy 

8 conservation and demand side management 

9 practices; and 

10 (E) affect access to domestic natural gas 

11 supplies; and 

12 (5) recommendations for Federal actions to 

13 achieve the purposes described in subsection (b), in14 cluding recommendations that— 

15 (A) encourage or require the use of energy 

16 sources other than natural gas, including coal, 

17 nuclear, and renewable sources; 

18 (B) encourage or require the use of energy 

19 conservation or demand side management prac20 tices; 

21 (C) support technologies for the develop22 ment of alternative sources of natural gas and 

23 synthetic gas, including coal gasification tech24 nologies; and 
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1 (D) would improve access to domestic nat2 ural gas supplies. 

3 (d) CONSULTATION.—In preparing the report under 

4 subsection (a), the Secretary shall consult with— 

5 (1) experts in natural gas supply and demand; 

6 and 

7 (2) representatives of— 

8 (A) State and local governments; 

9 (B) tribal organizations; and 

10 (C) consumer and other organizations. 

11 (e) HEARINGS.—In preparing the report under sub12 section (a), the Secretary may hold public hearings and 

13 provide other opportunities for public comment, as the 

14 Secretary considers appropriate. 

15 SEC. 1321. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING 

16 AND DEVELOPMENT PRACTICES. 

17 (a) REVIEW.— 

18 (1) IN GENERAL.—In consultation with affected 

19 private surface owners, representatives of the oil and 

20 gas industry, and other interested parties, the Sec21 retary of the Interior shall undertake a review of the 

22 current policies and practices with respect to man23 agement of Federal subsurface oil and gas develop24 ment activities and the effects of those activities on 

25 the privately owned surface. 
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1 (2) INCLUSIONS.—The review shall include— 

2 (A) a comparison of the rights and respon3 sibilities under existing mineral and land law 

4 for the owner of a Federal mineral lease, the 

5 private surface owners and the Department; 

6 (B) a comparison of the surface owner 

7 consent provisions in section 714 of the Surface 

8 Mining Control and Reclamation Act of 1977 

9 (30 U.S.C. 1304) concerning surface mining of 

10 Federal coal deposits and the surface owner 

11 consent provisions for oil and gas development, 

12 including coalbed methane production; 

13 (C) an analysis and comparison of existing 

14 State laws addressing surface owner protection 

15 on split estates in which the surface estate is 

16 privately held and the subsurface estate is fed17 erally owned, or other split estate situations; 

18 and 

19 (D) recommendations for administrative or 

20 legislative action necessary to facilitate reason21 able access for Federal oil and gas activities 

22 while addressing surface owner concerns and 

23 minimizing impacts to private surface. 
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1 (b) REPORT.—The Secretary of the Interior shall re2 port the results of such review to Congress not later than 

3 180 days after the date of enactment of this Act. 

4 SEC. 1322. RESOLUTION OF FEDERAL RESOURCE DEVELOP5 MENT CONFLICTS IN THE POWDER RIVER 

6 BASIN. 

7 (a) REVIEW.—The Secretary of the Interior shall re8 view Federal and State laws in existence on the date of 

9 enactment of this Act in order to resolve any conflict relat10 ing to the Powder River Basin in Wyoming and Montana 

11 between— 

12 (1) the development of Federal coal; and 

13 (2) the development of Federal and non-Federal 

14 coalbed methane. 

15 (b) REPORT.—Not later than 180 days after the date 

16 of enactment of this Act, the Secretary of the Interior 

17 shall submit to Congress a report that— 

18 (1) describes methods of resolving a conflict de19 scribed in subsection (a); and 

20 (2) identifies a method preferred by the Sec21 retary of the Interior, including proposed legislative 

22 language, if any, required to implement the method. 

23 SEC. 1323. STUDY OF ENERGY EFFICIENCY STANDARDS. 

24 (a) STUDY.—The Secretary shall enter into a con25 tract with the National Academy of Sciences under which 
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1 the National Academy of Sciences, not later than 1 year 

2 after the date of enactment of this Act, shall conduct a 

3 study of whether the goals of energy efficiency standards 

4 are best served— 

5 (1) by measuring energy consumed, and effi6 ciency improvements, at the site of energy consump7 tion; or 

8 (2) through the full fuel cycle, beginning at the 

9 source of energy production. 

10 (b) REPORT.—Not later than 1 year after the date 

11 of enactment of this Act, the Secretary shall submit to 

12 Congress a report on the study under subsection (a). 

13 SEC. 1324. TELECOMMUTING STUDY. 

14 (a) DEFINITIONS.—In this section: 

15 (1) FEDERAL EMPLOYEE.—The term ‘‘Federal 

16 employee’’ has the meaning given the term ‘‘em17 ployee’’ in section 2105 of title 5, United States 

18 Code. 

19 (2) TELECOMMUTING.—The term ‘telecom20 muting’’ means the performance of work functions 

21 using communications technologies, which eliminates 

22 or substantially reduces the need to commute to and 

23 from traditional worksites. 

24 (b) STUDY REQUIRED.—The Secretary, in consulta25 tion with the Chairperson of the Federal Energy Regu-
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1 latory Commission, the Director of the Office of Personnel 

2 Management, the Administrator of General Services, and 

3 the Administrator of National Telecommunications and 

4 Information Administration, shall conduct a study of the 

5 energy conservation implications of the widespread adop6 tion of telecommuting by Federal employees in the United 

7 States. 

8 (c) INCLUSIONS.—The study under subsection (b) 

9 shall include an analysis of the following subjects in rela10 tion to the energy saving potential of telecommuting by 

11 Federal employees: 

12 (1) Reductions of energy use and energy costs 

13 in commuting and regular office heating, cooling, 

14 and other operations. 

15 (2) Other energy reductions accomplished by 

16 telecommuting. 

17 (3) Existing regulatory barriers that hamper 

18 telecommuting, including barriers to broadband tele19 communications services deployment. 

20 (4) Collateral benefits to the environment, fam21 ily life, and other values. 

22 (d) REPORT.—Not later than 180 days after the date 

23 of enactment of this Act, the Secretary shall submit to 

24 the President and Congress a report on the study under 
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1 subsection (b), including a description of the results of the 

2 analysis of each of subject referred to in subsection (c). 

3 SEC. 1325. OIL BYPASS FILTRATION TECHNOLOGY. 

4 The Secretary and the Administrator of the Environ5 mental Protection Agency shall— 

6 (1) conduct a joint study of the benefits of oil 

7 bypass filtration technology in— 

8 (A) reducing demand for oil; and 

9 (B) protecting the environment; 

10 (2) evaluate various products and manufactur11 ers with respect to oil bypass filtration technology; 

12 and 

13 (3) after conducting the evaluation under para14 graph (2), examine the feasibility of using oil bypass 

15 filtration technology in Federal motor vehicle fleets. 

16 SEC. 1326. TOTAL INTEGRATED THERMAL SYSTEMS. 

17 The Secretary shall— 

18 (1) conduct a study of the benefits of total inte19 grated thermal systems in— 

20 (A) reducing demand for oil; and 

21 (B) protecting the environment; and 

22 (2) examine the feasibility of using total inte23 grated thermal systems in Federal motor vehicle 

24 fleets (including the motor vehicle fleet of the De25 partment of Defense). 
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1 SEC. 1327. UNIVERSITY COLLABORATION. 

2 (a) REPORT.—Not later than 2 years after the date 

3 of enactment of this Act, the Secretary shall submit to 

4 Congress a report that examines the feasibility of pro5 moting collaborations between large institutions of higher 

6 education and small institutions of higher education (as 

7 determined by the Secretary) through grants, contracts, 

8 and cooperative agreements made by the Secretary for en9 ergy projects. 

10 (b) CONSIDERATION.—In preparing the report under 

11 subsection (a), the Secretary shall take into consideration 

12 the feasibility of providing incentives for including small 

13 institutions of higher education (including institutions 

14 that primarily serve minorities), as determined by the Sec15 retary, in— 

16 (1) energy research grants; 

17 (2) contracts; and 

18 (3) cooperative agreements. 

19 SEC. 1328. HYDROGEN PARTICIPATION STUDY. 

20 Not later than 1 year after the date of enactment 

21 of this Act, the Secretary shall submit to Congress a re22 port evaluating methodologies to ensure the widest partici23 pation practicable in setting goals and milestones under 

24 the hydrogen program of the Department, including inter25 national participants. 
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1 TITLE XIV—INCENTIVES FOR 

2 INNOVATIVE TECHNOLOGIES 

3 SEC. 1401. DEFINITIONS. 

4 In this title: 

5 (1) COMMERCIAL TECHNOLOGY.— 

6 (A) IN GENERAL.—The term ‘‘commercial 

7 technology’’ means a technology in general use 

8 in the commercial marketplace. 

9 (B) INCLUSIONS.—The term ‘‘commercial 

10 technology’’ does not include a technology solely 

11 by use of the technology in a demonstration 

12 project funded by the Department. 

13 (2) COST.—The term ‘‘cost’’ has the meaning 

14 given the term ‘‘cost of a loan guarantee’’ within the 

15 meaning of section 502(5)(C) of the Federal Credit 

16 Reform Act of 1990 (2 U.S.C. 661a(5)(C)). 

17 (3) ELIGIBLE PROJECT.—The term ‘‘eligible 

18 project’’ means a project described in section 1403. 

19 (4) GUARANTEE.— 

20 (A) IN GENERAL.—The term ‘‘guarantee’’ 

21 has the meaning given the term ‘‘loan guar22 antee’’ in section 502 of the Federal Credit Re23 form Act of 1990 (2 U.S.C. 661a). 

24 (B) INCLUSION.—The term ‘‘guarantee’’ 

25 includes a loan guarantee commitment (as de-
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1 fined in section 502 of the Federal Credit Re2 form Act of 1990 (2 U.S.C. 661a)). 

3 (5) OBLIGATION.—The term ‘‘obligation’’ 

4 means the loan or other debt obligation that is guar5 anteed under this section. 

6 SEC. 1402. TERMS AND CONDITIONS. 

7 (a) IN GENERAL.—Except for division C of Public 

8 Law 108–324, the Secretary shall make guarantees under 

9 this or any other Act for projects on such terms and condi10 tions as the Secretary determines, after consultation with 

11 the Secretary of the Treasury, only in accordance with this 

12 section. 

13 (b) SPECIFIC APPROPRIATION OR CONTRIBUTION.— 

14 No guarantee shall be made unless— 

15 (1) an appropriation for the cost has been 

16 made; or 

17 (2) the Secretary has received from the bor18 rower a payment in full for the cost of the obligation 

19 and deposited the payment into the Treasury. 

20 (c) AMOUNT.—Unless otherwise provided by law, a 

21 guarantee by the Secretary shall not exceed an amount 

22 equal to 80 percent of the project cost of the facility that 

23 is the subject of the guarantee, as estimated at the time 

24 at which the guarantee is issued. 

25 (d) REPAYMENT.— 
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1 (1) IN GENERAL.—No guarantee shall be made 

2 unless the Secretary determines that there is reason3 able prospect of repayment of the principal and in4 terest on the obligation by the borrower. 

5 (2) AMOUNT.—No guarantee shall be made un6 less the Secretary determines that the amount of the 

7 obligation (when combined with amounts available to 

8 the borrower from other sources) will be sufficient to 

9 carry out the project. 

10 (3) SUBORDINATION.—The obligation shall be 

11 subject to the condition that the obligation is not 

12 subordinate to other financing. 

13 (e) INTEREST RATE.—An obligation shall bear inter14 est at a rate that does not exceed a level that the Secretary 

15 determines appropriate, taking into account the prevailing 

16 rate of interest in the private sector for similar loans and 

17 risks. 

18 (f) TERM.—The term of an obligation shall require 

19 full repayment over a period not to exceed the lesser of— 

20 (1) 30 years; or 

21 (2) 90 percent of the projected useful life of the 

22 physical asset to be financed by the obligation (as 

23 determined by the Secretary). 

24 (g) DEFAULTS.— 

25 (1) PAYMENT BY SECRETARY.— 
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1 (A) IN GENERAL.—If a borrower defaults 

2 on the obligation (as defined in regulations pro3 mulgated by the Secretary and specified in the 

4 guarantee contract), the holder of the guarantee 

5 shall have the right to demand payment of the 

6 unpaid amount from the Secretary. 

7 (B) PAYMENT REQUIRED.—Within such 

8 period as may be specified in the guarantee or 

9 related agreements, the Secretary shall pay to 

10 the holder of the guarantee the unpaid interest 

11 on, and unpaid principal of the obligation as to 

12 which the borrower has defaulted, unless the 

13 Secretary finds that there was no default by the 

14 borrower in the payment of interest or principal 

15 or that the default has been remedied. 

16 (C) FORBEARANCE.—Nothing in this sub17 section precludes any forbearance by the holder 

18 of the obligation for the benefit of the borrower 

19 which may be agreed upon by the parties to the 

20 obligation and approved by the Secretary. 

21 (2) SUBROGATION.— 

22 (A) IN GENERAL.—If the Secretary makes 

23 a payment under paragraph (1), the Secretary 

24 shall be subrogated to the rights of the recipi25 ent of the payment as specified in the guar-
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1 antee or related agreements including, where 

2 appropriate, the authority (notwithstanding any 

3 other provision of law) to— 

4 (i) complete, maintain, operate, lease, 

5 or otherwise dispose of any property ac6 quired pursuant to such guarantee or re7 lated agreements; or 

8 (ii) permit the borrower, pursuant to 

9 an agreement with the Secretary, to con10 tinue to pursue the purposes of the project 

11 if the Secretary determines this to be in 

12 the public interest. 

13 (B) SUPERIORITY OF RIGHTS.—The rights 

14 of the Secretary, with respect to any property 

15 acquired pursuant to a guarantee or related 

16 agreements, shall be superior to the rights of 

17 any other person with respect to the property. 

18 (C) TERMS AND CONDITIONS.—A guar19 antee agreement shall include such detailed 

20 terms and conditions as the Secretary deter21 mines appropriate to— 

22 (i) protect the interests of the United 

23 States in the case of default; and 

24 (ii) have available all the patents and 

25 technology necessary for any person se-
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1 lected, including the Secretary, to complete 

2 and operate the project. 

3 (3) PAYMENT OF PRINCIPAL AND INTEREST BY

4 SECRETARY.—With respect to any obligation guar5 anteed under this section, the Secretary may enter 

6 into a contract to pay, and pay, holders of the obli7 gation, for and on behalf of the borrower, from 

8 funds appropriated for that purpose, the principal 

9 and interest payments which become due and pay10 able on the unpaid balance of the obligation if the 

11 Secretary finds that— 

12 (A)(i) the borrower is unable to meet the 

13 payments and is not in default; 

14 (ii) it is in the public interest to permit the 

15 borrower to continue to pursue the purposes of 

16 the project; and 

17 (iii) the probable net benefit to the Federal 

18 Government in paying the principal and interest 

19 will be greater than that which would result in 

20 the event of a default; 

21 (B) the amount of the payment that the 

22 Secretary is authorized to pay shall be no great23 er than the amount of principal and interest 

24 that the borrower is obligated to pay under the 

25 agreement being guaranteed; and 
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1 (C) the borrower agrees to reimburse the 

2 Secretary for the payment (including interest) 

3 on terms and conditions that are satisfactory to 

4 the Secretary. 

5 (4) ACTION BY ATTORNEY GENERAL.— 

6 (A) NOTIFICATION.—If the borrower de7 faults on an obligation, the Secretary shall no8 tify the Attorney General of the default. 

9 (B) RECOVERY.—On notification, the At10 torney General shall take such action as is ap11 propriate to recover the unpaid principal and 

12 interest due from— 

13 (i) such assets of the defaulting bor14 rower as are associated with the obligation; 

15 or 

16 (ii) any other security pledged to se17 cure the obligation. 

18 (h) FEES.— 

19 (1) IN GENERAL.—The Secretary shall charge 

20 and collect fees for guarantees in amounts the Sec21 retary determines are sufficient to cover applicable 

22 administrative expenses. 

23 (2) AVAILABILITY.—Fees collected under this 

24 subsection shall— 
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1 (A) be deposited by the Secretary into the 

2 Treasury; and 

3 (B) remain available until expended, sub4 ject to such other conditions as are contained in 

5 annual appropriations Acts. 

6 (i) RECORDS; AUDITS.— 

7 (1) IN GENERAL.—A recipient of a guarantee 

8 shall keep such records and other pertinent docu9 ments as the Secretary shall prescribe by regulation, 

10 including such records as the Secretary may require 

11 to facilitate an effective audit. 

12 (2) ACCESS.—The Secretary and the Comp13 troller General of the United States, or their duly 

14 authorized representatives, shall have access, for the 

15 purpose of audit, to the records and other pertinent 

16 documents. 

17 (j) FULL FAITH AND CREDIT.—The full faith and 

18 credit of the United States is pledged to the payment of 

19 all guarantees issued under this section with respect to 

20 principal and interest. 

21 SEC. 1403. ELIGIBLE PROJECTS. 

22 (a) IN GENERAL.—The Secretary may make guaran23 tees under this section only for projects that— 

24 (1) avoid, reduce, or sequester air pollutants or 

25 anthropogenic emissions of greenhouse gases; and 
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1 (2) employ new or significantly improved tech2 nologies as compared to commercial technologies in 

3 service in the United States at the time the guar4 antee is issued. 

5 (b) CATEGORIES.—Projects from the following cat6 egories shall be eligible for a guarantee under this section: 

7 (1) Renewable energy systems. 

8 (2) Advanced fossil energy technology (includ9 ing coal gasification meeting the criteria in sub10 section (d)). 

11 (3) Hydrogen fuel cell technology for residen12 tial, industrial or transportation applications. 

13 (4) Advanced nuclear energy facilities. 

14 (5) Carbon capture and sequestration practices 

15 and technologies, including agricultural and forestry 

16 practices that store and sequester carbon. 

17 (6) Efficient electrical generation, transmission, 

18 and distribution technologies. 

19 (7) Efficient end-use energy technologies. 

20 (8) Notwithstanding subsection (a)(2), produc21 tion facilities for fuel efficient vehicles. 

22 (c) GASIFICATION PROJECTS.—The Secretary may 

23 make guarantees for the following gasification projects: 

24 (1) INTEGRATED GASIFICATION COMBINED

25 CYCLE PROJECTS.—Integrated gasification combined 
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1 cycle plants meeting the emission levels under sub2 section (d), including— 

3 (A) projects for the generation of elec4 tricity— 

5 (i) for which, during the term of the 

6 guarantee— 

7 (I) coal, biomass, petroleum coke, 

8 or a combination of coal, biomass, and 

9 petroleum coke will account for at 

10 least 65 percent of annual heat input; 

11 and 

12 (II) electricity will account for at 

13 least 65 percent of net useful annual 

14 energy output; 

15 (ii) that have a design that is deter16 mined by the Secretary to be capable of ac17 commodating the equipment likely to be 

18 necessary to capture the carbon dioxide 

19 that would otherwise be emitted in flue gas 

20 from the plant; 

21 (iii) that have an assured revenue 

22 stream that covers project capital and op23 erating costs (including servicing all debt 

24 obligations covered by the guarantee) that 
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1 is approved by the Secretary and the rel2 evant State public utility commission; and 

3 (iv) on which construction commences 

4 not later than the date that is 3 years 

5 after the date of the issuance of the guar6 antee; 

7 (B) a project to produce energy from coal 

8 (of not more than 13,000 Btu/lb and mined in 

9 the western United States) using appropriate 

10 advanced integrated gasification combined cycle 

11 technology that minimizes and offers the poten12 tial to sequester carbon dioxide emissions and 

13 that— 

14 (i) may include repowering of existing 

15 facilities; 

16 (ii) may be built in stages; 

17 (iii) shall have a combined output of 

18 at least 100 megawatts; 

19 (iv) shall be located in a western State 

20 at an altitude greater than 4,000 feet; and 

21 (v) shall demonstrate the ability to 

22 use coal with an energy content of not 

23 more than 9,000 Btu/lb; 

24 (C) a project located in a taconite-pro25 ducing region of the United States that is enti-
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1 tled under the law of the State in which the 

2 plant is located to enter into a long-term con3 tract approved by a State public utility commis4 sion to sell at least 450 megawatts of output to 

5 a utility; and 

6 (D) a facility that— 

7 (i) generates separate hydrogen-rich 

8 (at least 75 percent hydrogen by volume) 

9 and carbon monoxide-rich (at least 75 per10 cent carbon monoxide by volume) product 

11 streams from the gasification of coal; and 

12 (ii) uses those separate streams to fa13 cilitate the production of ultra clean pre14 mium fuels through the Fischer-Tropsch 

15 process. 

16 (2) INDUSTRIAL GASIFICATION PROJECTS.—Fa17 cilities that gasify coal, biomass, or petroleum coke 

18 in any combination to produce synthesis gas for use 

19 as a fuel or feedstock and for which electricity ac20 counts for less than 65 percent of the useful energy 

21 output of the facility. 

22 (d) EMISSION LEVELS.—In addition to any other ap23 plicable Federal or State emission limitation requirements, 

24 a project shall attain at least— 
768 

•S 10 PCS 

1 (1) total sulfur dioxide emissions in flue gas 

2 from the project that do not exceed 0.05 lb/ 

3 mmBTU; 

4 (2) a 90-percent removal rate (including any 

5 fuel pretreatment) of mercury from the coal-derived 

6 gas, and any other fuel, combusted by the project; 

7 (3) total nitrogen oxide emissions in the flue 

8 gas from the project that do not exceed 0.08 lb/ 

9 mmBTU; and 

10 (4) total particulate emissions in the flue gas 

11 from the project that do not exceed 0.01 lb/ 

12 mmBTU. 

13 (e) QUALIFICATION OF FACILITIES RECEIVING TAX

14 CREDITS.—A project that receives tax credits for clean 

15 coal technology shall not be disqualified from receiving a 

16 guarantee under this title. 

17 SEC. 1404. AUTHORIZATION OF APPROPRIATIONS. 

18 There are authorized to be appropriated such sums 

19 as are necessary to provide the cost of guarantees under 

20 this title. 

Calendar No. 121 

109TH CONGRESS 

1ST SESSION S. 10 

A BILL 

To enhance the energy security of the United 

States, and for other purposes. 

JUNE 9, 2005 

Read twice and placed on the calendar