--H.R.776-- 

H.R.776 

One Hundred Second Congress of the United States of America 

AT THE SECOND SESSION 

Begun and held at the City of Washington on Friday, the third day of January, 

one thousand nine hundred and ninety-two 

An Act 

To provide for improved energy efficiency. 

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

assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

(a) SHORT TITLE- This Act may be cited as the `Energy Policy Act of 1992'. 

(b) TABLE OF CONTENTSTITLE I--ENERGY EFFICIENCY 

Subtitle A--Buildings 

Sec. 101. Building energy efficiency standards. 

Sec. 102. Residential energy efficiency ratings. 

Sec. 103. Energy efficient lighting and building centers. 

Sec. 104. Manufactured housing energy efficiency. 

Sec. 105. Energy efficient mortgages. 

Sec. 106. Energy efficient mortgages pilot program. 

Subtitle B--Utilities 

Sec. 111. Encouragement of investments in conservation and energy efficiency by electric utilities. 

Sec. 112. Energy efficiency grants to State regulatory authorities. 

Sec. 113. Tennessee Valley Authority least-cost planning program. 

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Sec. 114. Amendment of Hoover Power Plant Act. 

Sec. 115. Encouragement of investments in conservation and energy efficiency by gas utilities. 

Subtitle C--Appliance and Equipment Energy Efficiency Standards 

Sec. 121. Energy efficiency labeling for windows and window systems. 

Sec. 122. Energy conservation requirements for certain commercial and industrial equipment. 

Sec. 123. Energy conservation requirements for certain lamps and plumbing products. 

Sec. 124. High-intensity discharge lamps, distribution transformers, and small electric motors. 

Sec. 125. Energy efficiency information for commercial office equipment. 

Sec. 126. Energy efficiency information for luminaires. 

Sec. 127. Report on the potential of cooperative advanced appliance development. 

Sec. 128. Evaluation of utility early replacement programs for appliances. 

Subtitle D--Industrial 

Sec. 131. Energy efficiency in industrial facilities. 

Sec. 132. Process-oriented industrial energy efficiency. 

Sec. 133. Industrial insulation and audit guidelines. 

Subtitle E--State and Local Assistance 

Sec. 141. Amendments to State energy conservation program. 

Sec. 142. Amendments to low-income weatherization program. 

Sec. 143. Energy Extension Service program. 

Subtitle F--Federal Agency Energy Management 

Sec. 151. Definitions. 

Sec. 152. Federal energy management amendments. 

Sec. 153. General Services Administration Federal Buildings Fund. 

Sec. 154. Report by General Services Administration. 

Sec. 155. Energy savings performance contracts. 

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Sec. 156. Intergovernmental energy management planning and coordination. 

Sec. 157. Federal agency energy management training. 

Sec. 158. Energy audit teams. 

Sec. 159. Federal energy cost accounting and management. 

Sec. 160. Inspector General review and agency accountability. 

Sec. 161. Procurement and identification of energy efficient products. 

Sec. 162. Federal energy efficiency funding study. 

Sec. 163. United States Postal Service energy regulations. 

Sec. 164. United States Postal Service building energy survey and report. 

Sec. 165. United States Postal Service energy management report. 

Sec. 166. Energy management requirements for the United States Postal Service. 

Sec. 167. Government contract incentives. 

Sec. 168. Energy management requirements for congressional buildings. 

Subtitle G--Miscellaneous 

Sec. 171. Energy information. 

Sec. 172. District heating and cooling programs. 

Sec. 173. Study and report on vibration reduction technologies. 

TITLE II--NATURAL GAS 

Sec. 201. Fewer restrictions on certain natural gas imports and exports. 

Sec. 202. Sense of Congress. 

TITLE III--ALTERNATIVE FUELS--GENERAL 

Sec. 301. Definitions. 

Sec. 302. Amendments to the Energy Policy and Conservation Act. 

Sec. 303. Minimum Federal fleet requirement. 

Sec. 304. Refueling. 

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Sec. 305. Federal agency promotion, education, and coordination. 

Sec. 306. Agency incentives program. 

Sec. 307. Recognition and incentive awards program. 

Sec. 308. Measurement of alternative fuel use. 

Sec. 309. Information collection. 

Sec. 310. General Services Administration report. 

Sec. 311. United States Postal Service. 

TITLE IV--ALTERNATIVE FUELS--NON-FEDERAL PROGRAMS 

Sec. 401. Truck commercial application program. 

Sec. 402. Conforming amendments. 

Sec. 403. Alternative motor fuels amendments. 

Sec. 404. Vehicular natural gas jurisdiction. 

Sec. 405. Public information program. 

Sec. 406. Labeling requirements. 

Sec. 407. Data acquisition program. 

Sec. 408. Federal Energy Regulatory Commission authority to approve recovery of certain expenses in 

advance. 

Sec. 409. State and local incentives programs. 

Sec. 410. Alternative fuel bus program. 

Sec. 411. Certification of training programs. 

Sec. 412. Alternative fuel use in nonroad vehicles and engines. 

Sec. 413. Reports to Congress. 

Sec. 414. Low interest loan program. 

TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE 

FUELS, AND ALTERNATIVE FUELED PRIVATE VEHICLES 

Sec. 501. Mandate for alternative fuel providers.

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Sec. 502. Replacement fuel supply and demand program. 

Sec. 503. Replacement fuel demand estimates and supply information. 

Sec. 504. Modification of goals; additional rulemaking authority. 

Sec. 505. Voluntary supply commitments. 

Sec. 506. Technical and policy analysis. 

Sec. 507. Fleet requirement program. 

Sec. 508. Credits. 

Sec. 509. Secretary's recommendations to Congress. 

Sec. 510. Effect on other laws. 

Sec. 511. Prohibited acts. 

Sec. 512. Enforcement. 

Sec. 513. Powers of the Secretary. 

Sec. 514. Authorization of appropriations. 

TITLE VI--ELECTRIC MOTOR VEHICLES 

Sec. 601. Definitions. 

Subtitle A--Electric Motor Vehicle Commercial Demonstration Program 

Sec. 611. Program and solicitation. 

Sec. 612. Selection of proposals. 

Sec. 613. Discount payments. 

Sec. 614. Cost-sharing. 

Sec. 615. Reports to Congress. 

Sec. 616. Authorization of appropriations. 

Subtitle B--Electric Motor Vehicle Infrastructure and Support Systems Development 

Program 

Sec. 621. General authority. 

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Sec. 622. Proposals. 

Sec. 623. Protection of proprietary information. 

Sec. 624. Compliance with existing law. 

Sec. 625. Electric utility participation study. 

Sec. 626. Authorization of appropriations. 

TITLE VII--ELECTRICITY 

Subtitle A--Exempt Wholesale Generators 

Sec. 711. Public Utility Holding Company Act reform. 

Sec. 712. State consideration of the effects of power purchases on utility cost of capital; consideration of the 

effects of leveraged capital structures on the reliability of wholesale power sellers; and consideration of 

adequate fuel supplies. 

Sec. 713. Public utility holding companies to own interests in cogeneration facilities. 

Sec. 714. Books and records. 

Sec. 715. Investment in foreign utilities. 

Subtitle B--Federal Power Act; Interstate Commerce in Electricity 

Sec. 721. Amendments to section 211 of Federal Power Act. 

Sec. 722. Transmission services. 

Sec. 723. Information requirements. 

Sec. 724. Sales by exempt wholesale generators. 

Sec. 725. Penalties. 

Sec. 726. Definitions. 

Subtitle C--State and Local Authorities 

Sec. 731. State authorities. 

TITLE VIII--HIGH-LEVEL RADIOACTIVE WASTE 

Sec. 801. Nuclear waste disposal. 

Sec. 802. Office of the Nuclear Waste Negotiator.

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Sec. 803. Nuclear Waste Management Plan. 

TITLE IX--UNITED STATES ENRICHMENT CORPORATION 

Sec. 901. Establishment of the United States Enrichment Corporation. 

Sec. 902. Conforming amendments and repealers. 

Sec. 903. Restrictions on nuclear exports. 

Sec. 904. Severability. 

TITLE X--REMEDIAL ACTION AND URANIUM REVITALIZATION 

Subtitle A--Remedial Action at Active Processing Sites 

Sec. 1001. Remedial action program. 

Sec. 1002. Regulations. 

Sec. 1003. Authorization of appropriations. 

Sec. 1004. Definitions. 

Subtitle B--Uranium Revitalization 

Sec. 1011. Overfeed program. 

Sec. 1012. National Strategic Uranium Reserve. 

Sec. 1013. Sale of remaining DOE inventories. 

Sec. 1014. Responsibility for the industry. 

Sec. 1015. Annual uranium purchase reports. 

Sec. 1016. Uranium inventory study. 

Sec. 1017. Regulatory treatment of uranium purchases. 

Sec. 1018. Definitions. 

Subtitle C--Remedial Action at Inactive Processing Sites 

Sec. 1031. Uranium Mill Tailings Radiation Control Act extension. 

TITLE XI--URANIUM ENRICHMENT HEALTH, SAFETY, AND ENVIRONMENT 

ISSUES 

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Sec. 1101. Uranium enrichment health, safety, and environment issues. 

Sec. 1102. Licensing of AVLIS. 

Sec. 1103. Table of contents. 

TITLE XII--RENEWABLE ENERGY 

Sec. 1201. Purposes. 

Sec. 1202. Demonstration and commercial application projects for renewable energy and energy efficiency 

technologies. 

Sec. 1203. Renewable energy export technology training. 

Sec. 1204. Renewable energy advancement awards. 

Sec. 1205. Study of tax and rate treatment of renewable energy projects. 

Sec. 1206. Study of rice milling energy by-product marketing. 

Sec. 1207. Duties of interagency working group on renewable energy and energy efficiency exports. 

Sec. 1208. Study of export promotion practices. 

Sec. 1209. Data system and energy technology evaluation. 

Sec. 1210. Outreach. 

Sec. 1211. Innovative renewable energy technology transfer program. 

Sec. 1212. Renewable energy production incentive. 

TITLE XIII--COAL 

Subtitle A--Research, Development, Demonstration, and Commercial Application 

Sec. 1301. Coal research, development, demonstration, and commercial application programs. 

Sec. 1302. Coal-fired diesel engines. 

Sec. 1303. Clean coal, waste-to-energy. 

Sec. 1304. Nonfuel use of coal. 

Sec. 1305. Coal refinery program. 

Sec. 1306. Coalbed methane recovery. 

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Sec. 1307. Metallurgical coal development. 

Sec. 1308. Utilization of coal wastes. 

Sec. 1309. Underground coal gasification. 

Sec. 1310. Low-rank coal research and development. 

Sec. 1311. Magnetohydrodynamics. 

Sec. 1312. Oil substitution through coal liquefaction. 

Sec. 1313. Authorization of appropriations. 

Subtitle B--Clean Coal Technology Program 

Sec. 1321. Additional clean coal technology solicitations. 

Subtitle C--Other Coal Provisions 

Sec. 1331. Clean coal technology export promotion and interagency coordination. 

Sec. 1332. Innovative clean coal technology transfer program. 

Sec. 1333. Conventional coal technology transfer. 

Sec. 1334. Study of utilization of coal combustion byproducts. 

Sec. 1335. Calculation of avoided cost. 

Sec. 1336. Coal fuel mixtures. 

Sec. 1337. National clearinghouse. 

Sec. 1338. Coal exports. 

Sec. 1339. Ownership of coalbed methane. 

Sec. 1340. Establishment of data base and study of transportation rates. 

Sec. 1341. Authorization of appropriations. 

TITLE XIV--STRATEGIC PETROLEUM RESERVE 

Sec. 1401. Drawdown and distribution of the reserve. 

Sec. 1402. Expansion of reserve. 

Sec. 1403. Availability of funding for leasing.

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Sec. 1404. Purchase from stripper well properties. 

Sec. 1405. Redesignation of island States. 

Sec. 1406. Insular areas study. 

TITLE XV--OCTANE DISPLAY AND DISCLOSURE 

Sec. 1501. Certification and posting of automotive fuel ratings. 

Sec. 1502. Increased authority for enforcement. 

Sec. 1503. Studies. 

TITLE XVI--GLOBAL CLIMATE CHANGE 

Sec. 1601. Report. 

Sec. 1602. Least-cost energy strategy. 

Sec. 1603. Director of Climate Protection. 

Sec. 1604. Assessment of alternative policy mechanisms for addressing greenhouse gas emissions. 

Sec. 1605. National inventory and voluntary reporting of greenhouse gases. 

Sec. 1606. Repeal. 

Sec. 1607. Conforming amendment. 

Sec. 1608. Innovative environmental technology transfer program. 

Sec. 1609. Global climate change response fund. 

TITLE XVII--ADDITIONAL FEDERAL POWER ACT PROVISIONS 

Sec. 1701. Additional Federal Power Act provisions. 

TITLE XVIII--OIL PIPELINE REGULATORY REFORM 

Sec. 1801. Oil pipeline ratemaking methodology. 

Sec. 1802. Streamlining of Commission procedures. 

Sec. 1803. Protection of certain existing rates. 

Sec. 1804. Definitions. 

TITLE XX--GENERAL PROVISIONS; REDUCTION OF OIL VULNERABILITY

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Sec. 2001. Goals. 

Subtitle A--Oil and Gas Supply Enhancement 

Sec. 2011. Enhanced oil recovery. 

Sec. 2012. Oil shale. 

Sec. 2013. Natural gas supply. 

Sec. 2014. Natural gas end-use technologies. 

Sec. 2015. Midcontinent Energy Research Center. 

Subtitle B--Oil and Gas Demand Reduction and Substitution 

Sec. 2021. General transportation. 

Sec. 2022. Advanced automotive fuel economy. 

Sec. 2023. Alternative fuel vehicle program. 

Sec. 2024. Biofuels user facility. 

Sec. 2025. Electric motor vehicles and associated equipment research and development. 

Sec. 2026. Renewable hydrogen energy. 

Sec. 2027. Advanced diesel emissions program. 

Sec. 2028. Telecommuting study. 

TITLE XXI--ENERGY AND ENVIRONMENT 

Subtitle A--Improved Energy Efficiency 

Sec. 2101. General improved energy efficiency. 

Sec. 2102. Natural gas and electric heating and cooling technologies. 

Sec. 2103. Pulp and paper. 

Sec. 2104. Advanced buildings for 2005. 

Sec. 2105. Electric drives. 

Sec. 2106. Steel, aluminum, and metal research. 

Sec. 2107. Improving efficiency in energy-intensive industries.

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Sec. 2108. Energy efficient environmental program. 

Subtitle B--Electricity Generation and Use 

Sec. 2111. Renewable energy. 

Sec. 2112. High efficiency heat engines. 

Sec. 2113. Civilian nuclear waste. 

Sec. 2114. Fusion energy. 

Sec. 2115. Fuel cells. 

Sec. 2116. Environmental restoration and waste management program. 

Sec. 2117. High-temperature superconductivity program. 

Sec. 2118. Electric and magnetic fields research and public information dissemination program. 

Sec. 2119. Spark M. Matsunaga Renewable Energy and Ocean Technology Center. 

Subtitle C--Advanced Nuclear Reactors 

Sec. 2121. Purposes and definitions. 

Sec. 2122. Program, goals, and plan. 

Sec. 2123. Commercialization of advanced light water reactor technology. 

Sec. 2124. Prototype demonstration of advanced nuclear reactor technology. 

Sec. 2125. Repeals. 

Sec. 2126. Authorization of appropriations. 

TITLE XXII--ENERGY AND ECONOMIC GROWTH 

Sec. 2201. National advanced materials initiative. 

Sec. 2202. National advanced manufacturing technologies initiative. 

Sec. 2203. Supporting research and technical analysis. 

Sec. 2204. Math and science education program. 

Sec. 2205. Integration of research and development. 

Sec. 2206. Definitions. 

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TITLE XXIII--POLICY AND ADMINISTRATIVE PROVISIONS 

Sec. 2301. Policy on major construction projects. 

Sec. 2302. Energy research, development, demonstration, and commercial application advisory board. 

Sec. 2303. Amendments to existing law. 

Sec. 2304. Management plan. 

Sec. 2305. Costs related to decommissioning and the storage and disposal of nuclear waste. 

Sec. 2306. Limits on participation by companies. 

Sec. 2307. Uncosted obligations. 

TITLE XXIV--NON-FEDERAL POWER ACT HYDROPOWER PROVISIONS 

Sec. 2401. Rights-of-way on certain Federal lands. 

Sec. 2402. Dams in national park system units. 

Sec. 2403. Third party contracting by FERC. 

Sec. 2404. Improvement at existing Federal facilities. 

Sec. 2405. Water conservation and energy production. 

Sec. 2406. Federal projects in the Pacific Northwest. 

Sec. 2407. Certain projects in Alaska. 

Sec. 2408. Projects on fresh waters in State of Hawaii. 

Sec. 2409. Evaluation of development potential. 

TITLE XXV--COAL, OIL, AND GAS 

Sec. 2501. Hot dry rock geothermal energy. 

Sec. 2502. Hot dry rock geothermal energy in eastern United States. 

Sec. 2503. Coal remining. 

Sec. 2504. Surface Mining Act implementation. 

Sec. 2505. Federal lignite coal royalties. 

Sec. 2506. Acquired Federal land mineral receipts management.

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Sec. 2507. Reserved oil and gas. 

Sec. 2508. Certain outstanding oil and gas. 

Sec. 2509. Federal onshore oil and gas leasing. 

Sec. 2510. Oil placer claims. 

Sec. 2511. Oil shale claims. 

Sec. 2512. Health, safety, and mining technology research program. 

Sec. 2513. Assistance to small coal operators. 

Sec. 2514. Surface mining regulations. 

Sec. 2515. Amendment to Surface Mining Act. 

TITLE XXVI--INDIAN ENERGY RESOURCES 

Sec. 2601. Definitions. 

Sec. 2602. Tribal consultation. 

Sec. 2603. Promoting energy resource development and energy vertical integration on Indian reservations. 

Sec. 2604. Indian energy resource regulation. 

Sec. 2605. Indian Energy Resource Commission. 

Sec. 2606. Tribal government energy assistance program. 

TITLE XXVII--INSULAR AREAS ENERGY SECURITY 

Sec. 2701. Insular areas energy assistance program. 

Sec. 2702. Definition. 

Sec. 2703. Electricity requirements in Trust Territory of the Pacific Islands. 

Sec. 2704. PCB cleanup in Marshall Islands and Federated States of Micronesia. 

TITLE XXVIII--NUCLEAR PLANT LICENSING 

Sec. 2801. Combined licenses. 

Sec. 2802. Post-construction hearings on combined licenses. 

Sec. 2803. Rulemaking. 

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Sec. 2804. Amendment of a combined license pending a hearing. 

Sec. 2805. Judicial review. 

Sec. 2806. Effect on pending proceedings. 

Sec. 2807. Conforming amendment. 

TITLE XXIX--ADDITIONAL NUCLEAR ENERGY PROVISIONS 

Sec. 2901. State authority to regulate radiation below level of NRC regulatory concern. 

Sec. 2902. Employee protection for nuclear whistleblowers. 

Sec. 2903. Exemption of certain research and educational licensees from annual charges. 

Sec. 2904. Study and implementation plan on safety of shipments of plutonium by sea. 

TITLE XXX--MISCELLANEOUS 

Subtitle A--General Provisions 

Sec. 3001. Research, development, demonstration, and commercial application activities. 

Sec. 3002. Cost sharing. 

Subtitle B--Other Miscellaneous Provisions 

Sec. 3011. Powerplant and Industrial Fuel Use Act of 1978 repeal. 

Sec. 3012. Alaska Natural Gas Transportation Act of 1976 repeal. 

Sec. 3013. Geothermal heat pumps. 

Sec. 3014. Use of energy futures for fuel purchases. 

Sec. 3015. Energy subsidy study. 

Sec. 3016. Tar sands. 

Sec. 3017. Amendments to title 11 of the United States Code. 

Sec. 3018. Radiation exposure compensation. 

Sec. 3019. Strategic diversification. 

Sec. 3020. Consultative Commission on Western Hemisphere Energy and Environment. 

Sec. 3021. Disadvantaged business enterprises. 

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SEC. 2. DEFINITION. 

For purposes of this Act, the term `Secretary' means the Secretary of Energy. 

TITLE I--ENERGY EFFICIENCY 

Subtitle A--Buildings 

SEC. 101. BUILDING ENERGY EFFICIENCY STANDARDS. 

(a) IN GENERAL- Title III of the Energy Conservation and Production Act (42 U.S.C. 6831 et seq.) is 

amended-- 

(1) in section 303-- 

(A) by striking paragraph (9); 

(B) by redesignating paragraphs (10), (11), (12), and (13) as paragraphs (9), (10), (11), and 

(12), respectively; and 

(C) by adding at the end the following new paragraphs-- 

`(13) The term `Federal building energy standards' means energy consumption objectives to be 

met without specification of the methods, materials, or equipment to be employed in achieving 

those objectives, but including statements of the requirements, criteria, and evaluation methods to 

be used, and any necessary commentary. 

`(14) The term `voluntary building energy code' means a building energy code developed and 

updated through a consensus process among interested persons, such as that used by the Council of

American Building Officials; the American Society of Heating, Refrigerating, and AirConditioning Engineers; or other appropriate organizations. 

`(15) The term `CABO' means the Council of American Building Officials. 

`(16) The term `ASHRAE' means the American Society of Heating, Refrigerating, and AirConditioning Engineers.'; and 

(2) by striking sections 304, 306, 308, 309, 310, and 311 and inserting the following: 

`SEC. 304. UPDATING STATE BUILDING ENERGY EFFICIENCY CODES. 

`(a) CONSIDERATION AND DETERMINATION RESPECTING RESIDENTIAL BUILDING 

ENERGY CODES- (1) Not later than 2 years after the date of the enactment of the Energy Policy Act of 

1992, each State shall certify to the Secretary that it has reviewed the provisions of its residential 

building code regarding energy efficiency and made a determination as to whether it is appropriate for 

such State to revise such residential building code provisions to meet or exceed CABO Model Energy 

Code, 1992. 

`(2) The determination referred to in paragraph (1) shall be--

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`(A) made after public notice and hearing; 

`(B) in writing; 

`(C) based upon findings included in such determination and upon the evidence presented at the 

hearing; and 

`(D) available to the public. 

`(3) Each State may, to the extent consistent with otherwise applicable State law, revise the provisions of 

its residential building code regarding energy efficiency to meet or exceed CABO Model Energy Code, 

1992, or may decline to make such revisions. 

`(4) If a State makes a determination under paragraph (1) that it is not appropriate for such State to revise 

its residential building code, such State shall submit to the Secretary, in writing, the reasons for such 

determination, and such statement shall be available to the public. 

`(5)(A) Whenever CABO Model Energy Code, 1992, (or any successor of such code) is revised, the 

Secretary shall, not later than 12 months after such revision, determine whether such revision would 

improve energy efficiency in residential buildings. The Secretary shall publish notice of such 

determination in the Federal Register. 

`(B) If the Secretary makes an affirmative determination under subparagraph (A), each State shall, not 

later than 2 years after the date of the publication of such determination, certify that it has reviewed the 

provisions of its residential building code regarding energy efficiency and made a determination as to 

whether it is appropriate for such State to revise such residential building code provisions to meet or 

exceed the revised code for which the Secretary made such determination. 

`(C) Paragraphs (2), (3), and (4) shall apply to any determination made under subparagraph (B). 

`(b) CERTIFICATION OF COMMERCIAL BUILDING ENERGY CODE UPDATES- (1) Not later 

than 2 years after the date of the enactment of the Energy Policy Act of 1992, each State shall certify to 

the Secretary that it has reviewed and updated the provisions of its commercial building code regarding 

energy efficiency. Such certification shall include a demonstration that such State's code provisions meet 

or exceed the requirements of ASHRAE Standard 90.1-1989. 

`(2)(A) Whenever the provisions of ASHRAE Standard 90.1-1989 (or any successor standard) regarding 

energy efficiency in commercial buildings are revised, the Secretary shall, not later than 12 months after 

the date of such revision, determine whether such revision will improve energy efficiency in commercial 

buildings. The Secretary shall publish a notice of such determination in the Federal Register. 

`(B)(i) If the Secretary makes an affirmative determination under subparagraph (A), each State shall, not 

later than 2 years after the date of the publication of such determination, certify that it has reviewed and 

updated the provisions of its commercial building code regarding energy efficiency in accordance with 

the revised standard for which such determination was made. Such certification shall include a 

demonstration that the provisions of such State's commercial building code regarding energy efficiency 

meet or exceed such revised standard. 

`(ii) If the Secretary makes a determination under subparagraph (A) that such revised standard will not 

improve energy efficiency in commercial buildings, State commercial building code provisions 

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regarding energy efficiency shall meet or exceed ASHRAE Standard 90.1-1989, or if such standard has 

been revised, the last revised standard for which the Secretary has made an affirmative determination 

under subparagraph (A). 

`(c) EXTENSIONS- The Secretary shall permit extensions of the deadlines for the certification 

requirements under subsections (a) and (b) if a State can demonstrate that it has made a good faith effort 

to comply with such requirements and that it has made significant progress in doing so. 

`(d) TECHNICAL ASSISTANCE- The Secretary shall provide technical assistance to States to 

implement the requirements of this section, and to improve and implement State residential and 

commercial building energy efficiency codes or to otherwise promote the design and construction of 

energy efficient buildings. 

`(e) AVAILABILITY OF INCENTIVE FUNDING- (1) The Secretary shall provide incentive funding to 

States to implement the requirements of this section, and to improve and implement State residential and 

commercial building energy efficiency codes. In determining whether, and in what amount, to provide 

incentive funding under this subsection, the Secretary shall consider the actions proposed by the State to 

implement the requirements of this section, to improve and implement residential and commercial 

building energy efficiency codes, and to promote building energy efficiency through the use of such 

codes. 

`(2) There are authorized to be appropriated such sums as may be necessary to carry out this subsection. 

`SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS. 

`(a)(1) IN GENERAL- Not later than 2 years after the date of the enactment of the Energy Policy Act of 

1992, the Secretary, after consulting with appropriate Federal agencies, CABO, ASHRAE, the National 

Association of Home Builders, the Illuminating Engineering Society, the American Institute of 

Architects, the National Conference of the States on Building Codes and Standards, and other 

appropriate persons, shall establish, by rule, Federal building energy standards that require in new 

Federal buildings those energy efficiency measures that are technologically feasible and economically 

justified. Such standards shall become effective no later than 1 year after such rule is issued. 

`(2) The standards established under paragraph (1) shall-- 

`(A) contain energy saving and renewable energy specifications that meet or exceed the energy 

saving and renewable energy specifications of CABO Model Energy Code, 1992 (in the case of 

residential buildings) or ASHRAE Standard 90.1-1989 (in the case of commercial buildings); 

`(B) to the extent practicable, use the same format as the appropriate voluntary building energy 

code; and 

`(C) consider, in consultation with the Environmental Protection Agency and other Federal 

agencies, and where appropriate contain, measures with regard to radon and other indoor air 

pollutants. 

`(b) REPORT ON COMPARATIVE STANDARDS- The Secretary shall identify and describe, in the 

report required under section 308, the basis for any substantive difference between the Federal building 

energy standards established under this section (including differences in treatment of energy efficiency 

and renewable energy) and the appropriate voluntary building energy code.

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`(c) PERIODIC REVIEW- The Secretary shall periodically, but not less than once every 5 years, review 

the Federal building energy standards established under this section and shall, if significant energy 

savings would result, upgrade such standards to include all new energy efficiency and renewable energy 

measures that are technologically feasible and economically justified. 

`(d) INTERIM STANDARDS- Interim energy performance standards for new Federal buildings issued 

by the Secretary under this title as it existed before the date of the enactment of the Energy Policy Act of 

1992 shall remain in effect until the standards established under subsection (a) become effective. 

`SEC. 306. FEDERAL COMPLIANCE. 

`(a) PROCEDURES- (1) The head of each Federal agency shall adopt procedures necessary to assure 

that new Federal buildings meet or exceed the Federal building energy standards established under 

section 305. 

`(2) The Federal building energy standards established under section 305 shall apply to new buildings 

under the jurisdiction of the Architect of the Capitol. The Architect shall adopt procedures necessary to 

assure that such buildings meet or exceed such standards. 

`(b) CONSTRUCTION OF NEW BUILDINGS- The head of a Federal agency may expend Federal 

funds for the construction of a new Federal building only if the building meets or exceeds the appropriate 

Federal building energy standards established under section 305. 

`SEC. 307. SUPPORT FOR VOLUNTARY BUILDING ENERGY CODES. 

`(a) IN GENERAL- Not later than 1 year after the date of the enactment of the Energy Policy Act of 

1992, the Secretary, after consulting with the Secretary of Housing and Urban Development, the 

Secretary of Veterans Affairs, other appropriate Federal agencies, CABO, ASHRAE, the National 

Conference of States on Building Codes and Standards, and any other appropriate building codes and 

standards organization, shall support the upgrading of voluntary building energy codes for new 

residential and commercial buildings. Such support shall include-- 

`(1) a compilation of data and other information regarding building energy efficiency standards 

and codes in the possession of the Federal Government, State and local governments, and industry 

organizations; 

`(2) assistance in improving the technical basis for such standards and codes; 

`(3) assistance in determining the cost-effectiveness and the technical feasibility of the energy 

efficiency measures included in such standards and codes; and 

`(4) assistance in identifying appropriate measures with regard to radon and other indoor air 

pollutants. 

`(b) REVIEW- The Secretary shall periodically review the technical and economic basis of voluntary 

building energy codes and, based upon ongoing research activities-- 

`(1) recommend amendments to such codes including measures with regard to radon and other 

indoor air pollutants; 

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`(2) seek adoption of all technologically feasible and economically justified energy efficiency 

measures; and 

`(3) otherwise participate in any industry process for review and modification of such codes. 

`SEC. 308. REPORTS. 

`The Secretary, in consultation with the Secretary of Housing and Urban Development, the Secretary of 

Veterans Affairs, and other appropriate Federal agencies, shall report annually to the Congress on 

activities conducted pursuant to this title. Such report shall include-- 

`(1) recommendations made under section 307(b) regarding the prevailing voluntary building 

energy codes; 

`(2) a State-by-State summary of actions taken under this title; and 

`(3) recommendations to the Congress with respect to opportunities to further promote building 

energy efficiency and otherwise carry out the purposes of this title.'. 

(b) CONFORMING AMENDMENT- The table of contents of such Act is amended by striking the items 

relating to sections 304, 306, 308, 309, 310 and 311, and inserting in lieu thereof the following-- 

`Sec. 304. Updating State building energy efficiency codes. 

`Sec. 305. Federal building energy efficiency standards. 

`Sec. 306. Federal compliance. 

`Sec. 307. Support for voluntary building energy codes. 

`Sec. 308. Reports.'. 

` 

(c) FEDERAL MORTGAGE REQUIREMENTS- 

(1) AMENDMENT TO CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING 

ACT- Section 109 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12709) 

is amended to read as follows: 

`SEC. 109. ENERGY EFFICIENCY STANDARDS. 

`(a) ESTABLISHMENT- 

`(1) IN GENERAL- The Secretary of Housing and Urban Development and the Secretary of 

Agriculture shall, not later than 1 year after the date of the enactment of the Energy Policy Act of 

1992, jointly establish, by rule, energy efficiency standards for-- 

`(A) new construction of public and assisted housing and single family and multifamily

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residential housing (other than manufactured homes) subject to mortgages insured under the 

National Housing Act; and 

`(B) new construction of single family housing (other than manufactured homes) subject to 

mortgages insured, guaranteed, or made by the Secretary of Agriculture under title V of the 

Housing Act of 1949. 

`(2) CONTENTS- Such standards shall meet or exceed the requirements of the Council of 

American Building Officials Model Energy Code, 1992 (hereafter in this section referred to as 

`CABO Model Energy Code, 1992'), or, in the case of multifamily high rises, the requirements of 

the American Society of Heating, Refrigerating, and Air-Conditioning Engineers Standard 90.1-

1989 (hereafter in this section referred to as `ASHRAE Standard 90.1-1989'), and shall be costeffective with respect to construction and operating costs on a life-cycle cost basis. In developing 

such standards, the Secretaries shall consult with an advisory task force composed of 

homebuilders, national, State, and local housing agencies (including public housing agencies), 

energy agencies, building code organizations and agencies, energy efficiency organizations, utility 

organizations, low-income housing organizations, and other parties designated by the Secretaries. 

`(b) MODEL ENERGY CODE- If the Secretaries have not, within 1 year after the date of the enactment 

of the Energy Policy Act of 1992, established energy efficiency standards under subsection (a), all new 

construction of housing specified in such subsection shall meet the requirements of CABO Model 

Energy Code, 1992, or, in the case of multifamily high rises, the requirements of ASHRAE Standard 

90.1-1989. 

`(c) REVISIONS OF MODEL ENERGY CODE- If the requirements of CABO Model Energy Code, 

1992, or, in the case of multifamily high rises, ASHRAE Standard 90.1-1989, are revised at any time, the 

Secretaries shall, not later than 1 year after such revision, amend the standards established under 

subsection (a) to meet or exceed the requirements of such revised code or standard unless the Secretaries 

determine that compliance with such revised code or standard would not result in a significant increase 

in energy efficiency or would not be technologically feasible or economically justified.'. 

(2) AMENDMENT TO TITLE 38, UNITED STATES CODE- Section 3704 of title 38, United 

States Code, is amended by adding at the end thereof the following new subsection: 

`(g) A loan for the purchase or construction of new residential property, the construction of which began 

after the energy efficiency standards under section 109 of the Cranston-Gonzalez National Affordable 

Housing Act (42 U.S.C. 12709), as amended by section 101(c) of the Energy Policy Act of 1992, take 

effect, may not be financed through the assistance of this chapter unless the new residential property is 

constructed in compliance with such standards.'. 

SEC. 102. RESIDENTIAL ENERGY EFFICIENCY RATINGS. 

(a) RATINGS- Title II of the National Energy Conservation Policy Act (42 U.S.C. 8211 et seq.) is 

amended by adding at the end the following new part: 

`PART 6--RESIDENTIAL ENERGY EFFICIENCY RATING 

GUIDELINES

`SEC. 271. VOLUNTARY RATING GUIDELINES.

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`(a) IN GENERAL- Not later than 18 months after the date of the enactment of the Energy Policy Act of 

1992, the Secretary, in consultation with the Secretary of Housing and Urban Development, the 

Secretary of Veterans Affairs, representatives of existing home energy rating programs, and other 

appropriate persons, shall, by rule, issue voluntary guidelines that may be used by State and local 

governments, utilities, builders, real estate agents, lenders, agencies in mortgage markets, and others, to 

enable and encourage the assignment of energy efficiency ratings to residential buildings. 

`(b) CONTENTS OF GUIDELINES- The voluntary guidelines issued under subsection (a) shall-- 

`(1) encourage uniformity with regard to systems for rating the annual energy efficiency of 

residential buildings; 

`(2) establish protocols and procedures for-- 

`(A) certification of the technical accuracy of building energy analysis tools used to 

determine energy efficiency ratings; 

`(B) training of personnel conducting energy efficiency ratings; 

`(C) data collection and reporting; 

`(D) quality control; and 

`(E) monitoring and evaluation; 

`(3) encourage consistency with, and support for, the uniform plan for Federal energy efficient 

mortgages, including that developed under section 946 of the Cranston-Gonzalez National 

Affordable Housing Act (42 U.S.C. 12712 note) and pursuant to sections 105 and 106 of the 

Energy Policy Act of 1992; 

`(4) provide that rating systems take into account local climate conditions and construction 

practices, solar energy collected on-site, and the benefits of peak load shifting construction 

practices, and not discriminate among fuel types; and 

`(5) establish procedures to ensure that residential buildings can receive an energy efficiency rating 

at the time of sale and that such rating is communicated to potential buyers. 

`SEC. 272. TECHNICAL ASSISTANCE. 

`Not later than 2 years after the date of the enactment of the Energy Policy Act of 1992, the Secretary 

shall establish a program to provide technical assistance to State and local organizations to encourage the 

adoption of and use of residential energy efficiency rating systems consistent with the voluntary 

guidelines issued under section 271. 

`SEC. 273. REPORT. 

`Not later than 3 years after the date of the enactment of the Energy Policy Act of 1992, the Secretary 

shall transmit to the President and the Congress a final report containing-- 

`(1) a description of actions taken by the Secretary and other Federal agencies to implement this 

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part; 

`(2) a description of the action taken by States, local governments, and other organizations to 

implement the voluntary guidelines issued under section 271 and any problems encountered in 

implementing such guidelines; and 

`(3) recommendations on the feasibility of requiring, as a prerequisite to receiving federally 

assisted, guaranteed, or insured mortgages, the achievement of a minimum energy efficiency 

rating.'. 

(b) CONFORMING AMENDMENT- The table of contents for such Act is amended by adding at the 

end of title II the following: 

`PART 6--RESIDENTIAL ENERGY EFFICIENCY RATINGS 

`Sec. 271. Voluntary rating guidelines. 

`Sec. 272. Technical assistance. 

`Sec. 273. Report.'. 

SEC. 103. ENERGY EFFICIENT LIGHTING AND BUILDING CENTERS. 

(a) PURPOSE- The purpose of this section is to encourage energy efficiency in buildings through the 

establishment of regional centers to promote energy efficient lighting, heating and cooling, and building 

design. 

(b) GRANTS FOR ESTABLISHMENT- Not later than 18 months after the date of the enactment of this 

Act, the Secretary shall make grants to nonprofit institutions, or to consortiums that may include 

nonprofit institutions, State and local governments, universities, and utilities, to establish or enhance one 

regional building energy efficiency center (hereafter in this section referred to as a `regional center') in 

each of the 10 regions served by a Department of Energy regional support office. 

(c) PERMITTED ACTIVITIES- Each regional center established under this section may-- 

(1) provide information, training, and technical assistance to building professionals such as 

architects, designers, engineers, contractors, and building code officials, on building energy 

efficiency methods and technologies, including lighting, heating and cooling, and passive solar; 

(2) operate an outreach program to inform such building professionals of the benefits and 

opportunities of energy efficiency, and of the services of the center; 

(3) provide displays demonstrating building energy efficiency methods and technologies, such as 

lighting, windows, and heating and cooling equipment; 

(4) coordinate its activities and programs with other institutions within the region, such as State 

and local governments, utilities, and educational institutions, in order to support their efforts to 

promote building energy efficiency; 

(5) serve as a clearinghouse to ensure that information about new building energy efficiency

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technologies, including case studies of successful applications, is disseminated to end-users in the 

region; 

(6) study the building energy needs of the region and make available region-specific energy 

efficiency information to facilitate the adoption of cost-effective energy efficiency improvements; 

(7) assist educational institutions in establishing building energy efficiency engineering and 

technical programs and curricula; and 

(8) evaluate the performance of the center in promoting building energy efficiency. 

(d) APPLICATION- Any nonprofit institution or consortium interested in receiving a grant under this 

section shall submit to the Secretary an application in such form and containing such information as the 

Secretary may require. A lighting or building energy center in existence on the date of the enactment of 

this section which is owned and operated by a nonprofit institution or a consortium as described in 

subsection (b) shall be eligible for a grant under this section. 

(e) SELECTION CRITERIA- The Secretary shall select recipients of grants under this section on the 

basis of the following criteria: 

(1) The capability of the grant recipient to establish a board of directors for the regional center 

composed of representatives from utilities, State and local governments, building trade and 

professional organizations, manufacturers, and nonprofit energy and environmental organizations. 

(2) The demonstrated or potential resources available to the grant recipient for carrying out this 

subsection. 

(3) The demonstrated or potential ability of the grant recipient to promote building energy 

efficiency by carrying out the activities specified in subsection (c). 

(4) The activities which the grant recipient proposes to carry out under the grant. 

(f) REQUIREMENT OF MATCHING FUNDS- 

(1) FEDERAL SHARE- The Federal share of a grant under this section shall be no more than 50 

percent of the costs of establishing, and no more than 25 percent of the cost of operating the 

regional center. 

(2) NON-FEDERAL CONTRIBUTIONS- No grant may be made under this section in any fiscal 

year unless the recipient of such grant enters into such agreements with the Secretary as the 

Secretary may require to ensure that such recipient will provide the necessary non-Federal 

contributions. Such non-Federal contributions may be provided by utilities, State and local 

governments, nonprofit institutions, foundations, corporations, and other non-Federal entities. 

(g) TASK FORCE- The Secretary shall establish a task force to-- 

(1) advise the Secretary on activities to be carried out by grant recipients; 

(2) review and evaluate programs carried out by grant recipients; and

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(3) make recommendations regarding the building energy efficiency center grant program. 

(h) MEMBERSHIP TERMS AND ADMINISTRATION OF TASK FORCE- 

(1) IN GENERAL- The task force shall be composed of approximately 20 members, appointed by 

the Secretary, with expertise in the area of building energy efficiency, including representatives 

from-- 

(A) State or local energy offices; 

(B) utilities; 

(C) building construction trade or professional associations; 

(D) architecture, engineering or professional associations; 

(E) building component or equipment manufacturers; 

(F) from national laboratories; 

(G) building code officials or professional associations; and 

(H) nonprofit energy or environmental organizations. 

(2) GEOGRAPHIC REPRESENTATION- The Secretary shall ensure that there is broad 

geographical representation among task force members. 

(3) TERMS- Members shall be appointed for a term of 3 years. A vacancy in the task force shall 

be filled in the manner in which the original appointment was made. 

(4) PAY- Members shall serve without pay. Each member shall receive travel expenses, including 

per diem in lieu of subsistence, in accordance with sections 5702 and 5703 of title 5, United States 

Code. 

(5) CHAIRPERSON- The Chairperson and Vice Chairperson of the task force shall be elected by 

the members. 

(6) MEETINGS- The task force shall meet biannually and at the call of the Chairperson. 

(7) INAPPLICABILITY OF TERMINATION DATE- Section 14 of the Federal Advisory 

Committee Act shall not apply to the task force. 

(i) REPORT- The Secretary shall transmit annually to the Congress a report on the activities of regional 

centers established under this section, including the degree to which matching funds are being leveraged 

from private sources to establish and operate such centers. 

(j) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated for purposes of 

carrying out this section, to remain available until expended, not more than $10,000,000 for each of 

fiscal years 1994, 1995, and 1996. 

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SEC. 104. MANUFACTURED HOUSING ENERGY EFFICIENCY. 

(a) AMENDMENTS TO CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACTSection 943(d)(1) of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625; 109 

Stat. 4413) is amended-- 

(1) in subparagraph (D), by striking `thermal insulation, energy efficiency'; 

(2) by redesignating subparagraphs (E), (F), (G), and (H) as subparagraphs (F), (G), (H), and (I), 

respectively; and 

(3) by inserting after subparagraph (D) the following new subparagraph: 

`(E) consult with the Secretary of Energy and make recommendations regarding additional 

or revised standards for thermal insulation and energy efficiency applicable to manufactured 

housing;'. 

(b) DUTIES OF THE SECRETARY- The Secretary of Housing and Urban Development shall assess the 

energy performance of manufactured housing and make recommendations to the National Commission 

on Manufactured Housing established under section 943 of the Cranston-Gonzalez National Affordable 

Housing Act regarding any thermal insulation and energy efficiency improvements applicable to 

manufactured housing which are technologically feasible and economically justified. The Secretary shall 

also test the performance and determine the cost effectiveness of manufactured housing constructed in 

compliance with the standards established under such section. 

(c) EXCEPTION TO FEDERAL PREEMPTION- If the Secretary of Housing and Urban Development 

has not issued, within 1 year after the date of the enactment of this Act, final regulations pursuant to 

section 604 of the National Manufactured Housing Construction and Safety Standards Act of 1974 (42 

U.S.C. 5403) that establish thermal insulation and energy efficiency standards for manufactured housing 

that take effect before January 1, 1995, then States may establish thermal insulation and energy 

efficiency standards for manufactured housing if such standards are at least as stringent as thermal 

performance standards for manufactured housing contained in the Second Public Review Draft of 

BSR/ASHRAE 90.2P entitled `Energy Efficient Design of Low-Rise Residential Buildings' and all 

public reviews of Independent Substantive Changes to such document that have been approved on or 

before the date of the enactment of this Act. 

SEC. 105. ENERGY EFFICIENT MORTGAGES. 

(a) DEFINITION OF ENERGY EFFICIENT MORTGAGE- Section 104 of the Cranston-Gonzalez 

National Affordable Housing Act (42 U.S.C. 12704) is amended by adding at the end the following new 

paragraph: 

`(24) The term `energy efficient mortgage' means a mortgage that provides financing incentives 

for the purchase of energy efficient homes, or that provides financing incentives to make energy 

efficiency improvements in existing homes by incorporating the cost of such improvements in the 

mortgage.'. 

(b) UNIFORM MORTGAGE FINANCING PLAN FOR ENERGY EFFICIENCY- Section 946 of the 

Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12712 note) is amended-- 

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(1) in subsection (a), by striking `mortgage financing incentives for energy efficiency' and 

inserting `energy efficient mortgages (as such term is defined in section 104 of this Act)'; and 

(2) in subsection (b)-- 

(A) in the second sentence, by inserting `, but not be limited to,' after `include'; and 

(B) by inserting after the period at the end of the following new sentence: `The Task Force 

shall determine whether notifying potential home purchasers of the availability of energy 

efficient mortgages would promote energy efficiency in residential buildings, and if so, the 

Task Force shall recommend appropriate notification guidelines, and agencies and 

organizations referred to in the preceding sentence are authorized to implement such 

guidelines.'. 

SEC. 106. ENERGY EFFICIENT MORTGAGES PILOT PROGRAM. 

(a) ESTABLISHMENT OF PILOT PROGRAM- 

(1) IN GENERAL- Not later than 6 months after the date of enactment of this Act, the Secretary of

Housing and Urban Development (hereafter referred to as the `Secretary') shall establish an energy 

efficient mortgage pilot program in 5 States, to promote the purchase of existing energy efficient 

residential buildings and the installation of cost-effective improvements in existing residential 

buildings. 

(2) PILOT PROGRAM- The pilot program established under this subsection shall include the 

following criteria, where applicable: 

(A) ORIGINATION- The lender shall originate a housing loan that is insured under title II 

of the National Housing Act in accordance with the applicable requirements. 

(B) APPROVAL- The mortgagor's base loan application shall be approved if the 

mortgagor's income and credit record is found to be satisfactory. 

(C) COST OF IMPROVEMENTS- The cost of cost-effective energy efficiency 

improvements shall not exceed the greater of-- 

(i) 5 percent of the property value (not to exceed $8,000); or 

(ii) $4,000. 

(3) AUTHORITY FOR MORTGAGEES- In granting mortgages under the pilot program 

established pursuant to this subsection, the Secretary shall grant mortgagees the authority-- 

(A) to permit the final loan amount to exceed the loan limits established under title II of the 

National Housing Act by an amount not to exceed 100 percent of the cost of the costeffective energy efficiency improvements, if the mortgagor's request to add the cost of such 

improvements is received by the mortgagee prior to funding of the base loan; 

(B) to hold in escrow all funds provided to the mortgagor to undertake the energy efficiency 

improvements until the efficiency improvements are actually installed; and

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(C) to transfer or sell the energy efficient mortgage to the appropriate secondary market 

agency, after the mortgage is issued, but before the energy efficiency improvements are 

actually installed. 

(4) PROMOTION OF PILOT PROGRAM- The Secretary shall encourage participation in the 

energy efficient mortgage pilot program by-- 

(A) making available information to lending agencies and other appropriate authorities 

regarding the availability and benefits of energy efficient mortgages; 

(B) requiring mortgagees and designated lending authorities to provide written notice of the 

availability and benefits of the pilot program to mortgagors applying for financing in those 

States designated by the Secretary as participating under the pilot program; and 

(C) requiring each applicant for a mortgage insured under title II of the National Housing 

Act in those States participating under the pilot program to sign a statement that such 

applicant has been informed of the program requirements and understands the benefits of 

energy efficient mortgages. 

(5) TRAINING PROGRAM- Not later than 9 months after the date of enactment of this Act, the 

Secretary, in consultation with the Secretary of Energy, shall establish and implement a program 

for training personnel at relevant lending agencies, real estate companies, and other appropriate 

organizations regarding the benefits of energy efficient mortgages and the operation of the pilot 

program under this subsection. 

(6) REPORT- Not later than 18 months after the date of enactment of this Act, the Secretary shall 

prepare and submit a report to the Congress describing the effectiveness and implementation of the 

energy efficient mortgage pilot program as described under this subsection, and assessing the 

potential for expanding the pilot program nationwide. 

(b) EXPANSION OF PROGRAM- Not later than the expiration of the 2-year period beginning on the 

date of the implementation of the energy efficient mortgage pilot program under this section, the 

Secretary of Housing and Urban Development shall expand the pilot program on a nationwide basis and 

shall expand the program to include new residential housing, unless the Secretary determines that either 

such expansion would not be practicable, in which case the Secretary shall submit to the Congress, 

before the expiration of such period, a report explaining why either expansion would not be practicable. 

(c) DEFINITIONS- For purposes of this section: 

(1) The term `base loan' means any mortgage loan for a residential building eligible for insurance 

under title II of the National Housing Act or title 38, United States Code, that does not include the 

cost of cost-effective energy improvements. 

(2) The term `cost-effective' means, with respect to energy efficiency improvements to a 

residential building, improvements that result in the total present value cost of the improvements 

(including any maintenance and repair expenses) being less than the total present value of the 

energy saved over the useful life of the improvement, when 100 percent of the cost of 

improvements is added to the base loan. For purposes of this paragraph, savings and costeffectiveness shall be determined pursuant to a home energy rating report sufficient for purposes 

of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation, 

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or by other technically accurate methods. 

(3) The term `energy efficient mortgage' means a mortgage on a residential building that 

recognizes the energy savings of a home that has cost-effective energy saving construction or 

improvements (including solar water heaters, solar-assisted air conditioners and ventilators, superinsulation, and insulating glass and film) and that has the effect of not disqualifying a borrower 

who, but for the expenditures on energy saving construction or improvements, would otherwise 

have qualified for a base loan. 

(4) The term `residential building' means any attached or unattached single family residence. 

(d) RULE OF CONSTRUCTION- This section may not be construed to affect any other programs of the 

Secretary of Housing and Urban Development for energy-efficient mortgages. The pilot program carried 

out under this section shall not replace or result in the termination of such other programs. 

(e) REGULATIONS- The Secretary shall issue any regulations necessary to carry out this section not 

later than the expiration of the 180-day period beginning on the date of the enactment of this Act. The 

regulations shall be issued after notice and opportunity for public comment pursuant to the provisions of 

section 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 

section). 

(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

may be necessary to carry out this section. 

Subtitle B--Utilities 

SEC. 111. ENCOURAGEMENT OF INVESTMENTS IN CONSERVATION AND ENERGY 

EFFICIENCY BY ELECTRIC UTILITIES. 

(a) AMENDMENT TO THE PUBLIC UTILITY REGULATORY POLICIES ACT- The Public Utility 

Regulatory Policies Act of 1978 (P.L. 95-617; 92 Stat. 3117; 16 U.S.C. 2601 and following) is amended 

by adding the following at the end of section 111(d): 

`(7) INTEGRATED RESOURCE PLANNING- Each electric utility shall employ integrated 

resource planning. All plans or filings before a State regulatory authority to meet the requirements 

of this paragraph must be updated on a regular basis, must provide the opportunity for public 

participation and comment, and contain a requirement that the plan be implemented. 

`(8) INVESTMENTS IN CONSERVATION AND DEMAND MANAGEMENT- The rates 

allowed to be charged by a State regulated electric utility shall be such that the utility's investment 

in and expenditures for energy conservation, energy efficiency resources, and other demand side 

management measures are at least as profitable, giving appropriate consideration to income lost 

from reduced sales due to investments in and expenditures for conservation and efficiency, as its 

investments in and expenditures for the construction of new generation, transmission, and 

distribution equipment. Such energy conservation, energy efficiency resources and other demand 

side management measures shall be appropriately monitored and evaluated. 

`(9) ENERGY EFFICIENCY INVESTMENTS IN POWER GENERATION AND SUPPLY- The 

rates charged by any electric utility shall be such that the utility is encouraged to make investments 

in, and expenditures for, all cost-effective improvements in the energy efficiency of power 

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generation, transmission and distribution. In considering regulatory changes to achieve the 

objectives of this paragraph, State regulatory authorities and nonregulated electric utilities shall 

consider the disincentives caused by existing ratemaking policies, and practices, and consider 

incentives that would encourage better maintenance, and investment in more efficient power 

generation, transmission and distribution equipment.'. 

(b) PROTECTION FOR SMALL BUSINESS- The Public Utility Regulatory Policies Act of 1978 

(Public Law 95-617; 92 Stat. 3117; 16 U.S.C. 2601 and following) is amended by inserting the following 

new paragraph at the end of subsection 111(c): 

`(3) If a State regulatory authority implements a standard established by subsection (d)(7) or (8), 

such authority shall-- 

`(A) consider the impact that implementation of such standard would have on small 

businesses engaged in the design, sale, supply, installation or servicing of energy 

conservation, energy efficiency or other demand side management measures, and 

`(B) implement such standard so as to assure that utility actions would not provide such 

utilities with unfair competitive advantages over such small businesses.'. 

(c) EFFECTIVE DATE- Section 112(b) of such Act is amended by inserting `(or after the enactment of 

the Comprehensive National Energy Policy Act in the case of standards under paragraphs (7), (8), and 

(9) of section 111(d))' after `Act' in both places such word appears in paragraphs (1) and (2). 

(d) DEFINITIONS- Section 3 of such Act is amended by adding the following new paragraphs at the end 

thereof: 

`(19) The term `integrated resource planning' means, in the case of an electric utility, a planning 

and selection process for new energy resources that evaluates the full range of alternatives, 

including new generating capacity, power purchases, energy conservation and efficiency, 

cogeneration and district heating and cooling applications, and renewable energy resources, in 

order to provide adequate and reliable service to its electric customers at the lowest system cost. 

The process shall take into account necessary features for system operation, such as diversity, 

reliability, dispatchability, and other factors of risk; shall take into account the ability to verify 

energy savings achieved through energy conservation and efficiency and the projected durability 

of such savings measured over time; and shall treat demand and supply resources on a consistent 

and integrated basis. 

`(20) The term `system cost' means all direct and quantifiable net costs for an energy resource over 

its available life, including the cost of production, distribution, transportation, utilization, waste 

management, and environmental compliance. 

`(21) The term `demand side management' includes load management techniques.'. 

(e) REPORT- Not later than 2 years after the date of the enactment of this Act, the Secretary shall 

transmit a report to the President and to the Congress containing-- 

(1) a survey of all State laws, regulations, practices, and policies under which State regulatory 

authorities implement the provisions of paragraphs (7), (8), and (9) of section 111(d) of the Public 

Utility Regulatory Policies Act of 1978;

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(2) an evaluation by the Secretary of whether and to what extent, integrated resource planning is 

likely to result in-- 

(A) higher or lower electricity costs to an electric utility's ultimate consumers or to classes 

or groups of such consumers; 

(B) enhanced or reduced reliability of electric service; and 

(C) increased or decreased dependence on particular energy resources; and 

(3) a survey of practices and policies under which electric cooperatives prepare integrated resource 

plans, submit such plans to the Rural Electrification Administration and the extent to which such 

integrated resource planning is reflected in rates charged to customers. 

The report shall include an analysis prepared in conjunction with the Federal Trade Commission, of the 

competitive impact of implementation of energy conservation, energy efficiency, and other demand side 

management programs by utilities on small businesses engaged in the design, sale, supply, installation, 

or servicing of similar energy conservation, energy efficiency, or other demand side management 

measures and whether any unfair, deceptive, or predatory acts exist, or are likely to exist, from 

implementation of such programs. 

SEC. 112. ENERGY EFFICIENCY GRANTS TO STATE REGULATORY AUTHORITIES. 

(a) ENERGY EFFICIENCY GRANTS- The Secretary is authorized in accordance with the provisions of 

this section to provide grants to State regulatory authorities in an amount not to exceed $250,000 per 

authority, for purposes of encouraging demand-side management including energy conservation, energy 

efficiency and load management techniques and for meeting the requirements of paragraphs (7), (8), and 

(9) of section 111(d) of the Public Utility Regulatory Policies Act of 1978 and as a means of meeting gas 

supply needs and to meet the requirements of paragraphs (3) and (4) of section 303(b) of the Public 

Utility Regulatory Policies Act of 1978. Such grants may be utilized by a State regulatory authority to 

provide financial assistance to nonprofit subgrantees of the Department of Energy's Weatherization 

Assistance Program in order to facilitate participation by such subgrantees in proceedings of such 

regulatory authority to examine energy conservation, energy efficiency, or other demand-side 

management programs. 

(b) PLAN- A State regulatory authority wishing to receive a grant under this section shall submit a plan 

to the Secretary that specifies the actions such authority proposes to take that would achieve the purposes 

of this section. 

(c) SECRETARIAL ACTION- (1) In determining whether, and in what amount, to provide a grant to a 

State regulatory authority under this section the Secretary shall consider, in addition to other appropriate 

factors, the actions proposed by the State regulatory authority to achieve the purposes of this section and 

to consider implementation of the ratemaking standards established in-- 

(A) paragraphs (7), (8) and (9) of section 111(d) of the Public Utility Regulatory Policies Act of 

1978; or 

(B) paragraphs (3) and (4) of section 303(b) of the Public Utility Regulatory Policies Act of 1978. 

(2) Such actions-- 

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(A) shall include procedures to facilitate the participation of grantees and nonprofit subgrantees of 

the Department of Energy's Weatherization Assistance Program in proceedings of such regulatory 

authorities examining demand-side management programs; and 

(B) shall provide for coverage of the cost of such grantee and subgrantees' participation in such 

proceedings. 

(d) RECORDKEEPING- Each State regulatory authority that receives a grant under this section shall 

keep such records as the Secretary shall require. 

(e) DEFINITION- For purposes of this section, the term `State regulatory authority' shall have the same 

meaning as provided by section 3 of the Public Utility Regulatory Policies Act of 1978 in the case of 

electric utilities, and such term shall have the same meaning as provided by section 302 of the Public 

Utility Regulatory Policies Act of 1978 in the case of gas utilities, except that in the case of any State 

without a statewide ratemaking authority, such term shall mean the State energy office. 

(f) AUTHORIZATION- There are authorized to be appropriated $5,000,000 for each of the fiscal years 

1994, 1995 and 1996 to carry out the purposes of this section. 

SEC. 113. TENNESSEE VALLEY AUTHORITY LEAST-COST PLANNING PROGRAM. 

(a) IN GENERAL- The Tennessee Valley Authority shall conduct a least-cost planning program in 

accordance with this section. 

(b) CONDUCT OF PROGRAM- 

(1) IN GENERAL- In conducting a least-cost planning program under subsection (a), the 

Tennessee Valley Authority shall employ and implement a planning and selection process for new 

energy resources which evaluates the full range of existing and incremental resources (including 

new power supplies, energy conservation and efficiency, and renewable energy resources) in order 

to provide adequate and reliable service to electric customers of the Tennessee Valley Authority at 

the lowest system cost. 

(2) PLANNING AND SELECTION PROCESS- The planning and selection process referred to in 

paragraph (1) shall-- 

(A) take into account necessary features for system operation, including diversity, reliability, 

dispatchability, and other factors of risk; 

(B) take into account the ability to verify energy savings achieved through energy 

conservation and efficiency and the projected durability of such savings measured over time; 

and 

(C) treat demand and supply resources on a consistent and integrated basis. 

(3) SYSTEM COST DEFINED- As used in paragraph (1), the term `system cost' means all direct 

and quantifiable net costs for an energy resource over its available life, including the cost of 

production, transportation, utilization, waste management, environmental compliance, and, in the 

case of imported energy resources, maintaining access to foreign sources of supply. 

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(c) PARTICIPATION BY DISTRIBUTORS- 

(1) IN GENERAL- In conducting a least-cost planning program under subsection (a), the 

Tennessee Valley Authority shall-- 

(A) provide an opportunity for distributors of the Tennessee Valley Authority to recommend 

cost-effective energy efficiency opportunities, rate structure incentives, and renewable 

energy proposals for inclusion in such program; and 

(B) encourage and assist such distributors in the planning and implementation of costeffective energy efficiency options. 

(2) ASSISTANCE- The Tennessee Valley Authority shall provide appropriate assistance to 

distributors under paragraph (1)(B). Such assistance shall, where cost effective, be provided by the 

Tennessee Valley Authority acting through, or in cooperation with, an association of distributors. 

Such assistance may include publications, workshops, conferences, one-on-one assistance, 

financial assistance, equipment loans, technology assessment studies, marketing studies, and other 

appropriate mechanisms to transfer information on energy efficiency and renewable energy 

options and programs to customers. 

(d) PUBLIC REVIEW AND COMMENT- Before the selection and addition of a major new energy 

resource on the Tennessee Valley Authority system, the Tennessee Valley Authority shall provide an 

opportunity for public review and comment and shall include a description of any such action in an 

annual report to the President and Congress. 

(e) EXEMPTION FROM CERTAIN REQUIREMENTS- The Tennessee Valley Authority shall not be 

subject to the least-cost planning requirements contained in section 111(d) of the Public Utility 

Regulatory Policies Act of 1978 or any similar requirement which might arise out of the Tennessee 

Valley Authority's electric power transactions with the Southeastern Power Administration. 

SEC. 114. AMENDMENT OF HOOVER POWER PLANT ACT. 

Title II of the Hoover Power Plant Act of 1984 (42 U.S.C. 7275-7276, Public Law 98-381) is amended to 

read as follows: 

`TITLE II--INTEGRATED RESOURCE PLANNING 

`Sec. 201. Definitions. 

`Sec. 202. Regulations to require integrated resource planning. 

`Sec. 203. Technical assistance. 

`Sec. 204. Integrated resource plans. 

`Sec. 205. Miscellaneous provisions. 

`SEC. 201. DEFINITIONS. 

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`As used in this title: 

`(1) The term `Administrator' means the Administrator of the Western Area Power Administration.

`(2) The term `integrated resource planning' means a planning process for new energy resources 

that evaluates the full range of alternatives, including new generating capacity, power purchases, 

energy conservation and efficiency, cogeneration and district heating and cooling applications, and 

renewable energy resources, in order to provide adequate and reliable service to its electric 

customers at the lowest system cost. The process shall take into account necessary features for 

system operation, such as diversity, reliability, dispatchability, and other factors of risk; shall take 

into account the ability to verify energy savings achieved through energy conservation and 

efficiency and the projected durability of such savings measured over time; and shall treat demand 

and supply resources on a consistent and integrated basis. 

`(3) The term `least cost option' means an option for providing reliable electric services to electric 

customers which will, to the extent practicable, minimize life-cycle system costs, including 

adverse environmental effects, of providing such service. To the extent practicable, energy 

efficiency and renewable resources may be given priority in any least-cost option. 

`(4) The term `long-term firm power service contract' means any contract for the sale by Western 

Area Power Administration of firm capacity, with or without energy, which is to be delivered over 

a period of more than one year. 

`(5) The terms `customer' or `customers' means any entity or entities purchasing firm capacity with 

or without energy, from the Western Area Power Administration under a long-term firm power 

service contract. Such terms include parent-type entities and their distribution or user members. 

`(6) For any customer, the term `applicable integrated resource plan' means the integrated resource 

plan approved by the Administrator under this title for that customer. 

`SEC. 202. REGULATIONS TO REQUIRE INTEGRATED RESOURCE PLANNING. 

`(a) REGULATIONS- Within 1 year after the enactment of this section, the Administrator shall, by 

regulation, revise the Final Amended Guidelines and Acceptance Criteria for Customer Conservation 

and Renewable Energy Programs published in the Federal Register on August 21, 1985 (50 F.R. 33892), 

or any subsequent amendments thereto, to require each customer purchasing electric energy under a 

long-term firm power service contract with the Western Area Power Administration to implement, 

within 3 years after the enactment of this section, integrated resource planning in accordance with the 

requirements of this title. 

`(b) CERTAIN SMALL CUSTOMERS- Notwithstanding subsection (a), for customers with total annual 

energy sales or usage of 25 Gigawatt Hours or less which are not members of a joint action agency or a 

generation and transmission cooperative with power supply responsibility, the Administrator may 

establish different regulations and apply such regulations to customers that the Administrator finds have 

limited economic, managerial, and resource capability to conduct integrated resource planning. The 

regulations under this subsection shall require such customers to consider all reasonable opportunities to 

meet their future energy service requirements using demand-side techniques, new renewable resources 

and other programs that will provide retail customers with electricity at the lowest possible cost, and 

minimize, to the extent practicable, adverse environmental effects.

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`SEC. 203. TECHNICAL ASSISTANCE. 

`The Administrator may provide technical assistance to customers to, among other things, conduct 

integrated resource planning, implement applicable integrated resource plans, and otherwise comply with 

the requirements of this title. Technical assistance may include publications, workshops, conferences, 

one-to-one assistance, equipment loans, technology and resource assessment studies, marketing studies, 

and other mechanisms to transfer information on energy efficiency and renewable energy options and 

programs to customers. The Administrator shall give priority to providing technical assistance to 

customers that have limited capability to conduct integrated resource planning. 

`SEC. 204. INTEGRATED RESOURCE PLANS. 

`(a) REVIEW BY WESTERN AREA POWER ADMINISTRATION- Within 1 year after the enactment 

of this section, the Administrator shall, by regulation, revise the Final Amended Guidelines and 

Acceptance Criteria for Customer Conservation and Renewable Energy Programs published in the 

Federal Register on August 21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, to require 

each customer to submit an integrated resource plan to the Administrator within 12 months after such 

regulations are amended. The regulation shall require a revision of such plan to be submitted every 5 

years after the initial submission. The Administrator shall review the initial plan in accordance with a 

schedule established by the Administrator (which schedule will provide for the review of all initial plans 

within 24 months after such regulations are amended), and each revision thereof within 120 days after 

his receipt of the plan or revision and determine whether the customer has in the development of the plan 

or revision, complied with this title. Plan amendments may be submitted to the Administrator at any time 

and the Administrator shall review each such amendment within 120 days after receipt thereof to 

determine whether the customer in amending its plan has complied with this title. If the Administrator 

determines that the customer, in developing its plan, revision, or amendment, has not complied with the 

requirements of this title, the customer shall resubmit the plan at any time thereafter. Whenever a plan or 

revision or amendment is resubmitted the Administrator shall review the plan or revision or amendment 

within 120 days after his receipt thereof to determine whether the customer has complied with this title. 

`(b) CRITERIA FOR APPROVAL OF INTEGRATED RESOURCE PLANS- The Administrator shall 

approve an integrated resource plan submitted as required under subsection (a) if, in developing the plan, 

the customer has: 

`(1) Identified and accurately compared all practicable energy efficiency and energy supply 

resource options available to the customer. 

`(2) Included a 2-year action plan and a 5-year action plan which describe specific actions the 

customer will take to implement its integrated resource plan. 

`(3) Designated `least-cost options' to be utilized by the customer for the purpose of providing 

reliable electric service to its retail consumers and explained the reasons why such options were 

selected. 

`(4) To the extent practicable, minimized adverse environmental effects of new resource 

acquisitions. 

`(5) In preparation and development of the plan (and each revision or amendment of the plan) has 

provided for full public participation, including participation by governing boards. 

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`(6) Included load forecasting. 

`(7) Provided methods of validating predicted performance in order to determine whether 

objectives in the plan are being met. 

`(8) Met such other criteria as the Administrator shall require. 

`(c) USE OF OTHER INTEGRATED RESOURCE PLANS- Where a customer or group of customers 

are implementing integrated resource planning under a program responding to Federal, State, or other 

initiatives, including integrated resource planning considered and implemented pursuant to section 111

(d) of the Public Utility Regulatory Policies Act of 1978, in evaluating that customer's integrated 

resource plan under this title, the Administrator shall accept such plan as fulfillment of the requirements 

of this title to the extent such plan substantially complies with the requirements of this title. 

`(d) COMPLIANCE WITH INTEGRATED RESOURCE PLANS- Within 1 year after the enactment of 

this section, the Administrator shall, by regulation, revise the Final Amended Guidelines and Acceptance 

Criteria for Customer Conservation and Renewable Energy Programs published in the Federal Register 

on August 21, 1985 (50 F.R. 33892), or any subsequent amendments thereto, to require each customer to 

fully comply with the applicable integrated resource plan and submit an annual report to the 

Administrator (in such form and containing such information as the Administrator may require) 

describing the customer's progress to the goals established in such plan. After the initial review under 

subsection (a) the Administrator shall periodically conduct reviews of a representative sample of 

applicable integrated resource plans and the customer's implementation of the applicable integrated 

resource plan to determine if the customers are in compliance with their plans. If the Administrator finds 

a customer out-of-compliance, the Administrator shall impose a surcharge under this section on all 

electric energy purchased by the customer from the Western Area Power Administration or reduce such 

customer's power allocation by 10 percent, unless the Administrator finds that a good faith effort has 

been made to comply with the approved plan. 

`(e) ENFORCEMENT- 

`(1) NO APPROVED PLAN- If an integrated resource plan for any customer is not submitted 

before the date 12 months after the guidelines are amended as required under this section or if the 

plan is disapproved by the Administrator and a revised plan is not resubmitted by the date 9 

months after the date of such disapproval, the Administrator shall impose a surcharge of 10 

percent of the purchase price on all power obtained by that customer from the Western Area Power 

Administration after such date. The surcharge shall remain in effect until an integrated resource 

plan is approved for that customer. If the plan is not submitted for more than one year after the 

required date, the surcharge shall increase to 20 percent for the second year (or any portion thereof 

prior to approval of the plan) and to 30 percent thereafter until the plan is submitted or the contract 

for the purchase of power by such customer from the Western Area Power Administration 

terminates. 

`(2) FAILURE TO COMPLY WITH APPROVED PLAN- After approval by the Administrator of 

an applicable integrated resource plan for any customer, the Administrator shall impose a 10 

percent surcharge on all power purchased by such customer from the Western Area Power 

Administration whenever the Administrator determines that such customer's activities are not 

consistent with the applicable integrated resource plan. The surcharge shall remain in effect until 

the Administrator determines that the customer's activities are consistent with the applicable 

integrated resource plan. The surcharge shall be increased to 20 percent if the customer's activities 

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are out of compliance for more than one year and to 30 percent after more than 2 years, except that 

no surcharge shall be imposed if the customer demonstrates, to the satisfaction of the 

Administrator, that a good faith effort has been made to comply with the approved plan. 

`(3) REDUCTION IN POWER ALLOCATION- In the case of any customer subject to a 

surcharge under paragraph (1) or (2), in lieu of imposing such surcharge the Administrator may 

reduce such customer's power allocation from the Western Area Power Administration by 10 

percent. The Administrator shall provide by regulation the terms and conditions under which a 

power allocation terminated under this subsection may be reinstated. 

`(f) INTEGRATED RESOURCE PLANNING COOPERATIVES- With the approval of the 

Administrator, customers within any State or region may form integrated resource planning cooperatives 

for the purposes of complying with this title, and such customers shall be allowed an additional 6 months 

to submit an initial integrated resource plan to the Administrator. 

`(g) CUSTOMERS WITH MORE THAN 1 CONTRACT- If more than one long-term firm power 

service contract exists between the Administrator and a customer, only one integrated resource plan shall 

be required for that customer under this title. 

`(h) PROGRAM REVIEW- Within 1 year after January 1, 1999, and at appropriate intervals thereafter, 

the Administrator shall initiate a public process to review the program established by this section. The 

Administrator is authorized at that time to revise the criteria set forth in section 204(b) to reflect changes, 

if any, in technology, needs, or other developments. 

`SEC. 205. MISCELLANEOUS PROVISIONS. 

`(a) ENVIRONMENTAL IMPACT STATEMENT- The provisions of the National Environmental 

Policy Act of 1969 shall apply to actions of the Administrator implementing this title in the same manner 

and to the same extent as such provisions apply to other major Federal actions significantly affecting the 

quality of the human environment. 

`(b) ANNUAL REPORTS- The Administrator shall include in the annual report submitted by the 

Western Area Power Administration (1) a description of the activities undertaken by the Administrator 

and by customers under this title and (2) an estimate of the energy savings and renewable resource 

benefits achieved as a result of such activities. 

`(c) STATE REGULATED INVESTOR-OWNED UTILITIES- Any State regulated electric utility (as 

defined in section 3(18) of the Public Utility Regulatory Policies Act of 1978) shall be exempt from the 

provisions of this title. 

`(d) RURAL ELECTRIFICATION ADMINISTRATION REQUIREMENTS- Nothing in this title shall 

require a customer to take any action inconsistent with a requirement imposed by the Rural 

Electrification Administration'. 

SEC. 115. ENCOURAGEMENT OF INVESTMENTS IN CONSERVATION AND ENERGY 

EFFICIENCY BY GAS UTILITIES. 

(a) DEFINITIONS- Section 302 of the Public Utility Regulatory Policies Act of 1978 (15 U.S.C. 3202) 

is amended by adding the following at the end thereof:

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`(9) The term `integrated resource planning' means, in the case of a gas utility, planning by the use 

of any standard, regulation, practice, or policy to undertake a systematic comparison between 

demand-side management measures and the supply of gas by a gas utility to minimize life-cycle 

costs of adequate and reliable utility services to gas consumers. Integrated resource planning shall 

take into account necessary features for system operation such as diversity, reliability, 

dispatchability, and other factors of risk and shall treat demand and supply to gas consumers on a 

consistent and integrated basis. 

`(10) The term `demand-side management' includes energy conservation, energy efficiency, and 

load management techniques.'. 

(b) IN GENERAL- Section 303(b) of the Public Utility Regulatory Policies Act of 1978 (15 U.S.C. 

3202) is amended by inserting at the end the following new paragraphs: 

`(3) INTEGRATED RESOURCE PLANNING- Each gas utility shall employ, in order to provide 

adequate and reliable service to its gas customers at the lowest system cost. All plans or filings of 

a State regulated gas utility before a State regulatory authority to meet the requirements of this 

paragraph shall (A) be updated on a regular basis, (B) provide the opportunity for public 

participation and comment, (C) provide for methods of validating predicted performance, and (D) 

contain a requirement that the plan be implemented after approval of the State regulatory authority. 

Subsection (c) shall not apply to this paragraph to the extent that it could be construed to require 

the State regulatory authority to extend the record of a State proceeding in submitting reports to 

the Federal Government. 

`(4) INVESTMENTS IN CONSERVATION AND DEMAND MANAGEMENT- The rates 

charged by any State regulated gas utility shall be such that the utility's prudent investments in, 

and expenditures for, energy conservation and load shifting programs and for other demand-side 

management measures which are consistent with the findings and purposes of the Energy Policy 

Act of 1992 are at least as profitable (taking into account the income lost due to reduced sales 

resulting from such programs) as prudent investments in, and expenditures for, the acquisition or 

construction of supplies and facilities. This objective requires that (A) regulators link the utility's 

net revenues, at least in part, to the utility's performance in implementing cost-effective programs 

promoted by this section; and (B) regulators ensure that, for purposes of recovering fixed costs, 

including its authorized return, the utility's performance is not affected by reductions in its retail 

sales volumes.'. 

(c) IMPACT ON SMALL BUSINESS- Section 303 of such Act is amended by inserting the following new 

subsection at the end thereof: 

`(d) SMALL BUSINESS IMPACTS- If a State regulatory authority implements a standard established 

by subsection (b) (3) or (4), such authority shall-- 

`(1) consider the impact that implementation of such standard would have on small businesses 

engaged in the design, sale, supply, installation, or servicing of energy conservation, energy 

efficiency, or other demand-side management measures, and 

`(2) implement such standard so as to assure that utility actions would not provide such utilities 

with unfair competitive advantages over such small businesses.'. 

(d) EFFECTIVE DATE- Section 303(a) of such Act is amended by inserting `(or after the enactment of 

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the Energy Policy Act of 1992 in the case of standards under paragraphs (3), and (4) of subsection (b))' 

after `Act' and by striking out `standard established by subsection (b)(2)' in paragraph (2) and inserting 

`standards established by paragraphs (2), (3) and (4) of subsection (b)'. 

(e) REPORT- The report under section 111(e) of this Act transmitted by the Secretary of Energy to the 

President and to the Congress shall contain a survey of all State laws, regulations, practices, and policies 

under which State regulatory authorities implement the provisions of paragraphs (3) and (4) of section 

303(b) of the Public Utility Regulatory Policies Act of 1978. The report shall include an analysis, 

prepared in conjunction with the Federal Trade Commission, of the competitive impact of 

implementation of energy conservation, energy efficiency, and other demand side management programs 

by gas utilities on small businesses engaged in the design, sale, supply, installation, or servicing of 

similar energy conservation, energy efficiency, or other demand-side management measures and whether 

any unfair, deceptive, or predatory acts or practices exist, or are likely to exist, from implementation of 

such programs. 

Subtitle C--Appliance and Equipment Energy Efficiency Standards 

SEC. 121. ENERGY EFFICIENCY LABELING FOR WINDOWS AND WINDOW SYSTEMS. 

(a) IN GENERAL- (1) The Secretary shall, after consulting with the National Fenestration Rating 

Council, industry representatives, and other appropriate organizations, provide financial assistance to 

support a voluntary national window rating program that will develop energy ratings and labels for 

windows and window systems. 

(2) Such rating program shall include-- 

(A) specifications for testing procedures and labels that will enable window buyers to make more 

informed purchasing decisions about the energy efficiency of windows and window systems; and 

(B) information (which may be disseminated through catalogs, trade publications, labels, or other 

mechanisms) that will allow window buyers to assess the energy consumption and potential cost 

savings of alternative window products. 

(3) Such rating program shall be developed by the National Fenestration Rating Council according to 

commonly accepted procedures for the development of national testing procedures and labeling 

programs. 

(b) MONITORING- The Secretary shall monitor and evaluate the efforts of the National Fenestration 

Rating Council and, not later than one year after the date of the enactment of this Act, make a 

determination as to whether the program developed by the Council is consistent with the objectives of 

subsection (a). 

(c) ALTERNATIVE SYSTEM- (1) If the Secretary makes a determination under subsection (b) that a 

voluntary national window rating program consistent with the objectives of subsection (a) has not been 

developed, the Secretary shall, after consultation with the National Institute of Standards and 

Technology, develop, not later than two years after such determination, test procedures under section 

323 of the Energy Policy and Conservation Act (42 U.S.C. 6293) for windows and window systems. 

(2) Not later than one year after the Secretary develops test procedures under paragraph (1), the Federal 

Trade Commission (hereafter in this section referred to as the `Commission') shall prescribe labeling

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rules under section 324 of such Act (42 U.S.C. 6294) for those windows and window systems for which 

the Secretary has prescribed test procedures under paragraph (1) except that, with respect to any type of 

window or window system (or class thereof), the Secretary may determine that such labeling is not 

technologically feasible or economically justified or is not likely to assist consumers in making 

purchasing decisions. 

(3) For purposes of sections 323, 324, and 327 of such Act, each product for which the Secretary has 

established test procedures or labeling rules pursuant to this subsection shall be considered a new 

covered product under section 322 of such Act (42 U.S.C. 6292) to the extent necessary to carry out this 

subsection. 

(4) For purposes of section 327(a) of such Act, the term `this part' includes this subsection to the extent 

necessary to carry out this subsection. 

SEC. 122. ENERGY CONSERVATION REQUIREMENTS FOR CERTAIN 

COMMERCIAL AND INDUSTRIAL EQUIPMENT. 

(a) DEFINITIONS- Section 340 of the Energy Policy and Conservation Act (42 U.S.C. 6311) is 

amended-- 

(1) in paragraph (1)-- 

(A) by redesignating subparagraph (B) as subparagraph (G); and 

(B) by inserting after subparagraph (A) the following: 

`(B) Small commercial package air conditioning and heating equipment. 

`(C) Large commercial package air conditioning and heating equipment. 

`(D) Packaged terminal air-conditioners and packaged terminal heat pumps. 

`(E) Warm air furnaces and packaged boilers. 

`(F) Storage water heaters, instantaneous water heaters, and unfired hot water storage 

tanks.'; and 

(2) in paragraph (2)(B)-- 

(A) by striking out `pumps)' and inserting in lieu thereof `pumps, small and large 

commercial package air conditioning and heating equipment, packaged terminal airconditioners, packaged terminal heat pumps, warm air furnaces, packaged boilers, storage 

water heaters, instantaneous water heaters, and unfired hot water storage tanks)'; and 

(B) by striking out clauses (v) and (xi) and redesignating clauses (vi), (vii), (viii), (ix), (x), 

(xii), (xiii), and (xiv) as clauses (v), (vi), (vii), (viii), (ix), (x), (xi), and (xii), respectively; 

and 

(3) by adding at the end the following:

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`(8) The term `small commercial package air conditioning and heating equipment' means aircooled, water-cooled, evaporatively-cooled, or water source (not including ground water source) 

electrically operated, unitary central air conditioners and central air conditioning heat pumps for 

commercial application which are rated below 135,000 Btu per hour (cooling capacity). 

`(9) The term `large commercial package air conditioning and heating equipment' means aircooled, water-cooled, evaporatively-cooled, or water source (not including ground water source) 

electrically operated, unitary central air conditioners and central air conditioning heat pumps for 

commercial application which are rated at or above 135,000 Btu per hour and below 240,000 Btu 

per hour (cooling capacity). 

`(10)(A) The term `packaged terminal air conditioner' means a wall sleeve and a separate 

unencased combination of heating and cooling assemblies specified by the builder and intended 

for mounting through the wall. It includes a prime source of refrigeration, separable outdoor 

louvers, forced ventilation, and heating availability by builder's choice of hot water, steam, or 

electricity. 

`(B) The term `packaged terminal heat pump' means a packaged terminal air conditioner that 

utilizes reverse cycle refrigeration as its prime heat source and should have supplementary heat 

source available to builders with the choice of hot water, steam, or electric resistant heat. 

`(11)(A) The term `warm air furnace' means a self-contained oil- or gas-fired furnace designed to 

supply heated air through ducts to spaces that require it and includes combination warm air 

furnace/electric air conditioning units but does not include unit heaters and duct furnaces. 

`(B) The term `packaged boiler' means a boiler that is shipped complete with heating equipment, 

mechanical draft equipment, and automatic controls; usually shipped in one or more sections. 

`(12)(A) The term `storage water heater' means a water heater that heats and stores water within 

the appliance at a thermostatically controlled temperature for delivery on demand. Such term does 

not include units with an input rating of 4000 Btu per hour or more per gallon of stored water. 

`(B) The term `instantaneous water heater' means a water heater that has an input rating of at least 

4000 Btu per hour per gallon of stored water. 

`(C) The term `unfired hot water storage tank' means a tank used to store water that is heated 

externally. 

`(13)(A) The term `electric motor' means any motor which is a general purpose T-frame, singlespeed, foot-mounting, polyphase squirrel-cage induction motor of the National Electrical 

Manufacturers Association, Design A and B, continuous rated, operating on 230/460 volts and 

constant 60 Hertz line power as defined in NEMA Standards Publication MG1-1987. 

`(B) The term `definite purpose motor' means any motor designed in standard ratings with standard 

operating characteristics or standard mechanical construction for use under service conditions 

other than usual or for use on a particular type of application and which cannot be used in most 

general purpose applications. 

`(C) The term `special purpose motor' means any motor, other than a general purpose motor or 

definite purpose motor, which has special operating characteristics or special mechanical 

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construction, or both, designed for a particular application. 

`(D) The term `open motor' means a motor having ventilating openings which permit passage of 

external cooling air over and around the windings of the machine. 

`(E) The term `enclosed motor' means a motor so enclosed as to prevent the free exchange of air 

between the inside and outside of the case but not sufficiently enclosed to be termed airtight. 

`(F) The term `small electric motor' means a NEMA general purpose alternating current singlespeed induction motor, built in a two-digit frame number series in accordance with NEMA 

Standards Publication MG1-1987. 

`(G) The term `efficiency' when used with respect to an electric motor means the ratio of an 

electric motor's useful power output to its total power input, expressed in percentage. 

`(H) The term `nominal full load efficiency' means the average efficiency of a population of 

motors of duplicate design as determined in accordance with NEMA Standards Publication MG1-

1987. 

`(14) The term `ASHRAE' means the American Society of Heating, Refrigerating, and Air 

Conditioning Engineers. 

`(15) The term `IES' means the Illuminating Engineering Society of North America. 

`(16) The term `NEMA' means the National Electrical Manufacturers Association. 

`(17) The term `IEEE' means the Institute of Electrical and Electronics Engineers. 

`(18) The term `energy conservation standard' means-- 

`(A) a performance standard that prescribes a minimum level of energy efficiency or a 

maximum quantity of energy use for a product; or 

`(B) a design requirement for a product.'. 

(b) TEST PROCEDURES- (1) Section 343(a) of such Act (42 U.S.C. 6314) is amended-- 

(A) by striking out paragraph (1) and inserting in lieu thereof the following: 

`(1) The Secretary may conduct an evaluation of a class of covered equipment and may prescribe test 

procedures for such class in accordance with the provisions of this section.'; and 

(B) by adding at the end the following new paragraphs: 

`(4)(A) With respect to small commercial package air conditioning and heating equipment, large 

commercial package air conditioning and heating equipment, packaged terminal air conditioners, 

packaged terminal heat pumps, warm-air furnaces, packaged boilers, storage water heaters, instantaneous 

water heaters, and unfired hot water storage tanks to which standards are applicable under section 342, 

the test procedures shall be those generally accepted industry testing procedures or rating procedures 

developed or recognized by the Air-Conditioning and Refrigeration Institute or by the American Society

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of Heating, Refrigerating and Air Conditioning Engineers, as referenced in ASHRAE/IES Standard 90.1 

and in effect on June 30, 1992. 

`(B) If such an industry test procedure or rating procedure for small commercial package air conditioning 

and heating equipment, large commercial package air conditioning and heating equipment, packaged 

terminal air conditioners, packaged terminal heat pumps, warm-air furnaces, packaged boilers, storage 

water heaters, instantaneous water heaters, or unfired hot water storage tanks is amended, the Secretary 

shall amend the test procedure for the product as necessary to be consistent with the amended industry 

test procedure or rating procedure unless the Secretary determines, by rule, published in the Federal 

Register and supported by clear and convincing evidence, that to do so would not meet the requirements 

for test procedures described in paragraphs (2) and (3) of this subsection. 

`(C) If the Secretary prescribes a rule containing such a determination, the rule may establish an 

amended test procedure for such product that meets the requirements of paragraphs (2) and (3) of this 

subsection. In establishing any amended test procedure under this subparagraph or subparagraph (B), the 

Secretary shall follow the procedures and meet the requirements specified in section 323(e). 

`(5)(A) With respect to electric motors to which standards are applicable under section 342, the test 

procedures shall be the test procedures specified in NEMA Standards Publication MG1-1987 and IEEE 

Standard 112 Test Method B for motor efficiency, as in effect on the date of the enactment of the Energy 

Policy Act of 1992. 

`(B) If the test procedure requirements of NEMA Standards Publication MG-1987 and IEEE Standard 

112 Test Method B for motor efficiency are amended, the Secretary shall amend the test procedures 

established by subparagraph (A) to conform to such amended test procedure requirements unless the 

Secretary determines, by rule, published in the Federal Register and supported by clear and convincing 

evidence, that to do so would not meet the requirements for test procedures described in paragraphs (2) 

and (3) of this subsection. 

`(C) If the Secretary prescribes a rule containing such a determination, the rule may establish amended 

test procedures for such electric motors that meets the requirements of paragraphs (2) and (3) of this 

subsection. In establishing any amended test procedure under this subparagraph or subparagraph (B), the 

Secretary shall follow the procedures and meet the requirements specified in section 323(e).'. 

(2) The second subsection designated as subsection (d) of section 343 of such Act (42 U.S.C. 6314(d)

(1)) is amended in paragraph (1) in the material preceding subparagraph (A), by inserting after `180 days' 

the following: `(or, in the case of small commercial package air conditioning and heating equipment, 

large commercial package air conditioning and heating equipment, packaged terminal air conditioners, 

packaged terminal heat pumps, warm-air furnaces, packaged boilers, storage water heaters, instantaneous 

water heaters, and unfired hot water storage tanks, 360 days)'. 

(c) LABELING- Section 344 of such Act (42 U.S.C. 6315) is amended-- 

(1) in subsection (a), by striking out `may' and inserting in lieu thereof `shall'; 

(2) in subsection (c), by striking out `may' in the material preceding paragraph (1) and inserting in 

lieu thereof `shall'; 

(3) by redesignating subsections (d), (e), (f), (g), (h), and (i) as subsections (f), (g), (h), (i), (j), and 

(k), respectively; and

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(4) by inserting after subsection (c), the following new subsections: 

`(d) Subject to subsection (h), not later than 12 months after the Secretary establishes test procedures for 

electric motors under section 343, the Secretary shall prescribe labeling rules under this section 

applicable to electric motors taking into consideration NEMA Standards Publication MG1-1987. Such 

rules shall provide that the labeling of any electric motor manufactured after the 12-month period 

beginning on the date the Secretary prescribes such labeling rules, shall-- 

`(1) indicate the energy efficiency of the motor on the permanent nameplate attached to such 

motor; 

`(2) prominently display the energy efficiency of the motor in equipment catalogs and other 

material used to market the equipment; and 

`(3) include such other markings as the Secretary determines necessary solely to facilitate 

enforcement of the standards established for electric motors under section 342. 

`(e) Subject to subsection (h), not later than 12 months after the Secretary establishes test procedures for 

small commercial package air conditioning and heating equipment, large commercial package air 

conditioning and heating equipment, packaged terminal air conditioners, packaged terminal heat pumps, 

warm-air furnaces, packaged boilers, storage water heaters, instantaneous water heaters, and unfired hot 

water storage tanks under section 343, the Secretary shall prescribe labeling rules under this section for 

such equipment. Such rules shall provide that the labeling of any small commercial package air 

conditioning and heating equipment, large commercial package air conditioning and heating equipment, 

packaged terminal air conditioner, packaged terminal heat pump, warm-air furnace, packaged boiler, 

storage water heater, instantaneous water heater, and unfired hot water storage tank manufactured after 

the 12-month period beginning on the date the Secretary prescribes such rules shall-- 

`(1) indicate the energy efficiency of the equipment on the permanent nameplate attached to such 

equipment or other nearby permanent marking; 

`(2) prominently display the energy efficiency of the equipment in new equipment catalogs used 

by the manufacturer to advertise the equipment; and 

`(3) include such other markings as the Secretary determines necessary solely to facilitate 

enforcement of the standards established for such equipment under section 342.'. 

(d) STANDARDS- Section 342 of such Act is amended to read as follows: 

`standards 

`SEC. 342. (a) SMALL AND LARGE COMMERCIAL PACKAGE AIR CONDITIONING AND 

HEATING EQUIPMENT, PACKAGED TERMINAL AIR CONDITIONERS AND HEAT PUMPS, 

WARM-AIR FURNACES, PACKAGED BOILERS, STORAGE WATER HEATERS, 

INSTANTANEOUS WATER HEATERS, AND UNFIRED HOT WATER STORAGE TANKS- (1) 

Each small commercial package air conditioning and heating equipment manufactured on or after 

January 1, 1994, shall meet the following standard levels: 

`(A) The minimum seasonal energy efficiency ratio of air-cooled three-phase electric central air 

conditioners and central air conditioning heat pumps less than 65,000 Btu per hour (cooling

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capacity), split systems, shall be 10.0. 

`(B) The minimum seasonal energy efficiency ratio of air-cooled three-phase electric central air 

conditioners and central air conditioning heat pumps less than 65,000 Btu per hour (cooling 

capacity), single package, shall be 9.7. 

`(C) The minimum energy efficiency ratio of air-cooled central air conditioners and central air 

conditioning heat pumps at or above 65,000 Btu per hour (cooling capacity) and less than 135,000 

Btu per hour (cooling capacity) shall be 8.9 (at a standard rating of 95 degrees F db). 

`(D) The minimum heating seasonal performance factor of air-cooled three-phase electric central 

air conditioning heat pumps less than 65,000 Btu per hour (cooling capacity), split systems, shall 

be 6.8. 

`(E) The minimum heating seasonal performance factor of air-cooled three-phase electric central 

air conditioning heat pumps less than 65,000 Btu per hour (cooling capacity), single package, shall 

be 6.6. 

`(F) The minimum coefficient of performance in the heating mode of air-cooled central air 

conditioning heat pumps at or above 65,000 Btu per hour (cooling capacity) and less than 135,000 

Btu per hour (cooling capacity) shall be 3.0 (at a high temperature rating of 47 degrees F db). 

`(G) The minimum energy efficiency ratio of water-cooled, evaporatively-cooled and water-source 

central air conditioners and central air conditioning heat pumps less than 65,000 Btu per hour 

(cooling capacity) shall be 9.3 (at a standard rating of 95 degrees F db, outdoor temperature for 

evaporatively cooled equipment, and 85 degrees Fahrenheit entering water temperature for watersource and water-cooled equipment). 

`(H) The minimum energy efficiency ratio of water-cooled, evaporatively-cooled and water-source 

central air conditioners and central air conditioning heat pumps at or above 65,000 Btu per hour 

(cooling capacity) and less than 135,000 Btu per hour (cooling capacity) shall be 10.5 (at a 

standard rating of 95 degrees F db, outdoor temperature for evaporatively cooled equipment, and 

85 degrees Fahrenheit entering water temperature for water source and water-cooled equipment). 

`(I) The minimum coefficient of performance in the heating mode of water-source heat pumps less 

than 135,000 Btu per hour (cooling capacity) shall be 3.8 (at a standard rating of 70 degrees 

Fahrenheit entering water). 

`(2) Each large commercial package air conditioning and heating equipment manufactured on or after 

January 1, 1995, shall meet the following standard levels: 

`(A) The minimum energy efficiency ratio of air-cooled central air conditioners and central air 

conditioning heat pumps at or above 135,000 Btu per hour (cooling capacity) and less than 

240,000 Btu per hour (cooling capacity) shall be 8.5 (at a standard rating of 95 degrees F db). 

`(B) The minimum coefficient of performance in the heating mode of air-cooled central air 

conditioning heat pumps at or above 135,000 Btu per hour (cooling capacity) and less than 

240,000 Btu per hour (cooling capacity) shall be 2.9. 

`(C) The minimum energy efficiency ratio of water- and evaporatively-cooled central air 

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conditioners and central air conditioning heat pumps at or above 135,000 Btu per hour (cooling 

capacity) and less than 240,000 Btu per hour (cooling capacity) shall be 9.6 (according to ARI 

Standard 360-86). 

`(3) Each packaged terminal air conditioner and packaged terminal heat pump manufactured on or after 

January 1, 1994, shall meet the following standard levels: 

`(A) The minimum energy efficiency ratio (EER) of packaged terminal air conditioners and 

packaged terminal heat pumps in the cooling mode shall be 10.0 -- (0.16 x Capacity [in thousands 

of Btu per hour at a standard rating of 95 degrees F db, outdoor temperature]). If a unit has a 

capacity of less than 7,000 Btu per hour, then 7,000 Btu per hour shall be used in the calculation. 

If a unit has a capacity of greater than 15,000 Btu per hour, then 15,000 Btu per hour shall be used 

in the calculation. 

`(B) The minimum coefficient of performance (COP) of packaged terminal heat pumps in the 

heating mode shall be 1.3 + (0.16 x the minimum cooling EER as specified in subparagraph (A)) 

(at a standard rating of 47 degrees F db). 

`(4) Each warm air furnace and packaged boiler manufactured on or after January 1, 1994, shall meet the 

following standard levels: 

`(A) The minimum thermal efficiency at the maximum rated capacity of gas-fired warm-air 

furnaces with capacity of 225,000 Btu per hour or more shall be 80 percent. 

`(B) The minimum thermal efficiency at the maximum rated capacity of oil-fired warm-air 

furnaces with capacity of 225,000 Btu per hour or more shall be 81 percent. 

`(C) The minimum combustion efficiency at the maximum rated capacity of gas-fired packaged 

boilers with capacity of 300,000 Btu per hour or more shall be 80 percent. 

`(D) The minimum combustion efficiency at the maximum rated capacity of oil-fired packaged 

boilers with capacity of 300,000 Btu per hour or more shall be 83 percent. 

`(5) Each storage water heater, instantaneous water heater, and unfired water storage tank manufactured 

on or after January 1, 1994, shall meet the following standard levels: 

`(A) Except as provided in subparagraph (G), the maximum standby loss, in percent per hour, of 

electric storage water heaters shall be 0.30 + (27/Measured Storage Volume [in gallons]). 

`(B) Except as provided in subparagraph (G), the maximum standby loss, in percent per hour, of 

gas- and oil-fired storage water heaters with input ratings of 155,000 Btu per hour or less shall be 

1.30 + (114/Measured Storage Volume [in gallons]). The minimum thermal efficiency of such 

units shall be 78 percent. 

`(C) Except as provided in subparagraph (G), the maximum standby loss, in percent per hour, of 

gas- and oil-fired storage water heaters with input ratings of more than 155,000 Btu per hour shall 

be 1.30 + (95/Measured Storage Volume [in gallons]). The minimum thermal efficiency of such 

units shall be 78 percent. 

`(D) The minimum thermal efficiency of instantaneous water heaters with a storage volume of less 

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than 10 gallons shall be 80 percent. 

`(E) Except as provided in subparagraph (G), the minimum thermal efficiency of instantaneous 

water heaters with a storage volume of 10 gallons or more shall be 77 percent. The maximum 

standby loss, in percent/hour, of such units shall be 2.30 + (67/Measured Storage Volume [in 

gallons]). 

`(F) Except as provided in subparagraph (G), the maximum heat loss of unfired hot water storage 

tanks shall be 6.5 Btu per hour per square foot of tank surface area. 

`(G) Storage water heaters and hot water storage tanks having more than 140 gallons of storage 

capacity need not meet the standby loss or heat loss requirements specified in subparagraphs (A) 

through (C) and subparagraphs (E) and (F) if the tank surface area is thermally insulated to R-12.5 

and if a standing pilot light is not used. 

`(6)(A) If ASHRAE/IES Standard 90.1, as in effect on the date of enactment of the Energy Policy Act of 

1992, is amended with respect to any small commercial package air conditioning and heating equipment, 

large commercial package air conditioning and heating equipment, packaged terminal air conditioners, 

packaged terminal heat pumps, warm-air furnaces, packaged boilers, storage water heaters, instantaneous 

water heaters, or unfired hot water storage tanks, the Secretary shall establish an amended uniform 

national standard for that product at the minimum level for each effective date specified in the amended 

ASHRAE/IES Standard 90.1, unless the Secretary determines, by rule published in the Federal Register 

and supported by clear and convincing evidence, that adoption of a uniform national standard more 

stringent than such amended ASHRAE/IES Standard 90.1 for such product would result in significant 

additional conservation of energy and is technologically feasible and economically justified. 

`(B)(i) If the Secretary issues a rule containing such a determination, the rule shall establish such 

amended standard. In determining whether a standard is economically justified for the purposes of 

subparagraph (A), the Secretary shall, after receiving views and comments furnished with respect to the 

proposed standard, determine whether the benefits of the standard exceed its burdens by, to the greatest 

extent practicable, considering-- 

`(I) the economic impact of the standard on the manufacturers and on the consumers of the 

products subject to such standard; 

`(II) the savings in operating costs throughout the estimated average life of the product in the type 

(or class) compared to any increase in the price of, or in the initial charges for, or maintenance 

expenses of, the products which are likely to result from the imposition of the standard; 

`(III) the total projected amount of energy savings likely to result directly from the imposition of 

the standard; 

`(IV) any lessening of the utility or the performance of the products likely to result from the 

imposition of the standard; 

`(V) the impact of any lessening of competition, as determined in writing by the Attorney General, 

that is likely to result from the imposition of the standard; 

`(VI) the need for national energy conservation; and

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`(VII) other factors the Secretary considers relevant. 

`(ii) The Secretary may not prescribe any amended standard under this paragraph which increases the 

maximum allowable energy use, or decreases the minimum required energy efficiency, of a covered 

product. The Secretary may not prescribe an amended standard under this subparagraph if the Secretary 

finds (and publishes such finding) that interested persons have established by a preponderance of the 

evidence that a standard is likely to result in the unavailability in the United States in any product type 

(or class) of performance characteristics (including reliability), features, sizes, capacities, and volumes 

that are substantially the same as those generally available in the United States at the time of the 

Secretary's finding. The failure of some types (or classes) to meet this criterion shall not affect the 

Secretary's determination of whether to prescribe a standard for other types or classes. 

`(C) A standard amended by the Secretary under this paragraph shall become effective for products 

manufactured-- 

`(i) with respect to small commercial package air conditioning and heating equipment, packaged 

terminal air conditioners, packaged terminal heat pumps, warm-air furnaces, packaged boilers, 

storage water heaters, instantaneous water heaters, and unfired hot water storage tanks, on or after 

a date which is two years after the effective date of the applicable minimum energy efficiency 

requirement in the amended ASHRAE/IES standard referred to in subparagraph (A); and 

`(ii) with respect to large commercial package air conditioning and heating equipment, on or after 

a date which is three years after the effective date of the applicable minimum energy efficiency 

requirement in the amended ASHRAE/IES standard referred to in subparagraph (A); 

except that an energy conservation standard amended by the Secretary pursuant to a rule under 

subparagraph (B) shall become effective for products manufactured on or after a date which is four years 

after the date such rule is published in the Federal Register. 

`(b) ELECTRIC MOTORS- (1) Except for definite purpose motors, special purpose motors, and those 

motors exempted by the Secretary under paragraph (2), each electric motor manufactured (alone or as a 

component of another piece of equipment) after the 60-month period beginning on the date of the 

enactment of this subsection, or in the case of an electric motor which requires listing or certification by 

a nationally recognized safety testing laboratory, after the 84-month period beginning on such date, shall 

have a nominal full load efficiency of not less than the following: 

--------------------------------------------------------------------------------- 

`Number of poles `Nominal Full-Load Efficiency 

 Open Motors Closed Motors 

 6 4 2 6 4 2 

--------------------------------------------------------------------------------- 

Motor Horsepower 

 1 80.0 82.5 80.0 82.5 75.5 

 1.5 84.0 84.0 82.5 85.5 84.0 82.5 

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 2 85.5 84.0 84.0 86.5 84.0 84.0 

 3 86.5 86.5 84.0 87.5 87.5 85.5 

 5 87.5 87.5 85.5 87.5 87.5 87.5 

 7.5 88.5 88.5 87.5 89.5 89.5 88.5 

 10 90.2 89.5 88.5 89.5 89.5 89.5 

 15 90.2 91.0 89.5 90.2 91.0 90.2 

 20 91.0 91.0 90.2 90.2 91.0 90.2 

 25 91.7 91.7 91.0 91.7 92.4 91.0 

 30 92.4 92.4 91.0 91.7 92.4 91.0 

 40 93.0 93.0 91.7 93.0 93.0 91.7 

 50 93.0 93.0 92.4 93.0 93.0 92.4 

 60 93.6 93.6 93.0 93.6 93.6 93.0 

 75 93.6 94.1 93.0 93.6 94.1 93.0 

 100 94.1 94.1 93.0 94.1 94.5 93.6 

 125 94.1 94.5 93.6 94.1 94.5 94.5 

 150 94.5 95.0 93.6 95.0 95.0 94.5 

 200 94.5 95.0 94.5 95.0 95.0 95.0 

--------------------------------------------------------------------------------- 

`(2)(A) The Secretary may, by rule, provide that the standards specified in paragraph (1) shall not apply 

to certain types or classes of electric motors if-- 

`(i) compliance with such standards would not result in significant energy savings because such 

motors cannot be used in most general purpose applications or are very unlikely to be used in most 

general purpose applications; and 

`(ii) standards for such motors would not be technologically feasible or economically justified. 

`(B) Not later than one year after the date of the enactment of this subsection, a manufacturer seeking an 

exemption under this paragraph with respect to a type or class of electric motor developed on or before 

the date of the enactment of such subsection shall submit a petition to the Secretary requesting such 

exemption. Such petition shall include evidence that the type or class of motor meets the criteria for 

exemption specified in subparagraph (A). 

`(C) Not later than two years after the date of the enactment of this subsection, the Secretary shall rule on 

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each petition for exemption submitted pursuant to subparagraph (B). In making such ruling, the 

Secretary shall afford an opportunity for public comment. 

`(D) Manufacturers of types or classes of motors developed after the date of the enactment of this 

subsection to which standards under paragraph (1) would be applicable may petition the Secretary for 

exemptions from compliance with such standards based on the criteria specified in subparagraph (A). 

`(3)(A) The Secretary shall publish a final rule no later than the end of the 24-month period beginning on 

the effective date of the standards established under paragraph (1) to determine if such standards should 

be amended. Such rule shall provide that any amendment shall apply to electric motors manufactured on 

or after a date which is five years after the effective date of the standards established under paragraph 

(1). 

`(B) The Secretary shall publish a final rule no later than 24 months after the effective date of the 

previous final rule to determine whether to amend the standards in effect for such product. Any such 

amendment shall apply to electric motors manufactured after a date which is five years after-- 

`(i) the effective date of the previous amendment; or 

`(ii) if the previous final rule did not amend the standards, the earliest date by which a previous 

amendment could have been effective.'. 

(e) ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION- (1) Section 345(a) of 

such Act (42 U.S.C. 6316(a)) is amended-- 

(A) in the material preceding paragraph (1)-- 

(i) by inserting after `to this part' the following: `(other than the equipment specified in 

subparagraphs (B), (C), (D), (E), and (F) of section 340(1))'; and 

(ii) by striking out `and sections 328' and inserting in lieu thereof `, the provisions of 

subsections (l) through (s) of section 325, and section 327'; 

(B) in paragraph (1)-- 

(i) by striking out `and 324' and inserting in lieu thereof `, 324, and 325'; and 

(ii) by striking out `343 and 344, respectively' and inserting in lieu thereof `343, 344, and 

342, respectively'; 

(C) in paragraph (3), by striking out `and' at the end thereof; 

(D) in paragraph (4), by striking out the period and inserting in lieu thereof a semicolon; and 

(E) by adding after paragraph (4) the following new paragraphs: 

`(5) section 327(a) shall be applied, in the case of electric motors, as if the National Appliance 

Energy Conservation Act of 1987 was the Energy Policy Act of 1992; 

`(6) section 327(b)(1) shall be applied as if electric motors were fluorescent lamp ballasts and as if 

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the National Appliance Energy Conservation Amendments of 1988 were the Energy Policy Act of 

1992; 

`(7) section 327(b)(4) shall be applied as if electric motors were fluorescent lamp ballasts and as if 

paragraph (5) of section 325(g) were section 342; and 

`(8) notwithstanding any other provision of law, a regulation or other requirement adopted by a 

State or subdivision of a State contained in a State or local building code for new construction 

concerning the energy efficiency or energy use of an electric motor covered under this part is not 

superseded by the standards for such electric motor established or prescribed under section 342(b) 

if such regulation or requirement is identical to the standards established or prescribed under such 

section.'. 

(2) Section 345 of such Act (42 U.S.C. 6316) is amended by adding at the end the following new 

subsections: 

`(b)(1) The provisions of section 326(a), (b), and (d), section 327(a), and sections 328 through 336 shall 

apply with respect to the equipment specified in subparagraphs (B), (C), (D), (E), and (F) of section 340

(1) to the same extent and in the same manner as they apply in part B. In applying such provisions for the 

purposes of such equipment, paragraphs (1), (2), (3), and (4) of subsection (a) shall apply. 

`(2)(A) A standard prescribed or established under section 342(a) shall, beginning on the effective date 

of such standard, supersede any State or local regulation concerning the energy efficiency or energy use 

of a product for which a standard is prescribed or established pursuant to such section. 

`(B) Notwithstanding subparagraph (A), a standard prescribed or established under section 342(a) shall 

not supersede a standard for such a product contained in a State or local building code for new 

construction if-- 

`(i) the standard in the building code does not require that the energy efficiency of such product 

exceed the applicable minimum energy efficiency requirement in amended ASHRAE/IES 

Standard 90.1; and 

`(ii) the standard in the building code does not take effect prior to the effective date of the 

applicable minimum energy efficiency requirement in amended ASHRAE/IES Standard 90.1. 

`(C) Notwithstanding subparagraph (A), a standard prescribed or established under section 342(a) shall 

not supersede the standards established by the State of California set forth in Table C-6, California Code 

of Regulations, Title 24, Part 2, Chapter 2-53, for water-source heat pumps below 135,000 Btu per hour 

(cooling capacity) that become effective on January 1, 1993. 

`(D) Notwithstanding subparagraph (A), a standard prescribed or established under section 342(a) shall 

not supersede a State regulation which has been granted a waiver by the Secretary. The Secretary may 

grant a waiver pursuant to the terms, conditions, criteria, procedures, and other requirements specified in 

section 327(d) of this Act. 

`(c) With respect to any electric motor to which standards are applicable under section 342(b), the 

Secretary shall require manufacturers to certify, through an independent testing or certification program 

nationally recognized in the United States, that such motor meets the applicable.'. 

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(3) Section 345 of such Act (42 U.S.C. 6316) is amended by striking out the section heading and 

inserting in lieu thereof `ADMINISTRATION, PENALTIES, ENFORCEMENT, AND PREEMPTION'.

(f) TECHNICAL AMENDMENTS- (1) Section 340(3) of such Act is amended by striking out `(3) the' 

and inserting in lieu thereof the following: `(3) The'. 

(2) Section 343 of such Act (42 U.S.C. 6314) is amended by redesignating the first subsection designated 

as subsection (d) as subsection (c). 

(3) The table of contents of such Act is amended-- 

(A) by striking out the item relating to section 342 and inserting in lieu thereof the following new 

item: 

`Sec. 342. Standards.'; 

and 

(B) by striking the item for section 345 and inserting in lieu thereof the following new item: 

`Sec. 345. Administration, penalties, enforcement, and preemption.'. 

SEC. 123. ENERGY CONSERVATION REQUIREMENTS FOR CERTAIN LAMPS AND 

PLUMBING PRODUCTS. 

(a) STATEMENT OF PURPOSE- Section 2 of the Energy Policy and Conservation Act (42 U.S.C. 

6201) is amended-- 

(1) in paragraph (6), by striking out `and' at the end; 

(2) in paragraph (7), by striking out the period at the end and inserting in lieu thereof `; and'; and 

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

`(8) to conserve water by improving the water efficiency of certain plumbing products and 

appliances.'. 

(b) DEFINITIONS- Section 321(a) of the Energy Policy and Conservation Act (42 U.S.C. 6291(a)) is 

amended-- 

(1) by striking out the subsection designation; 

(2) in paragraph (1)-- 

(A) in subparagraph (A), by inserting before the semicolon the following: `or, with respect 

to showerheads, faucets, water closets, and urinals, water'; and 

(B) in subparagraph (B), by striking out `ballasts' and inserting in lieu thereof the following: 

`ballasts, general service fluorescent lamps, incandescent reflector lamps, showerheads, 

faucets, water closets, and urinals';

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(3) in paragraph (6)-- 

(A) in subparagraph (A), by inserting `, or, in the case of showerheads, faucets, water 

closets, and urinals, water use,' after `energy use'; and 

(B) in subparagraph (B)-- 

(i) by striking out `and (14)' and inserting in lieu thereof `(15), (16), (17), and (19)'; 

and 

(ii) by striking out `325(o)' and inserting in lieu thereof `325(r)'; 

(4) in paragraph (7), by inserting after `to be consumed annually' the following: `, and in the case 

of showerheads, faucets, water closets, and urinals, the aggregate retail cost of water and 

wastewater treatment services likely to be incurred annually,'; and 

(5) by adding at the end the following new paragraphs: 

`(30)(A) Except as provided in subparagraph (E), the term `fluorescent lamp' means a low pressure 

mercury electric-discharge source in which a fluorescing coating transforms some of the 

ultraviolet energy generated by the mercury discharge into light, including only the following: 

`(i) Any straight-shaped lamp (commonly referred to as 4-foot medium bi-pin lamps) with 

medium bi-pin bases of nominal overall length of 48 inches and rated wattage of 28 or more.

`(ii) Any U-shaped lamp (commonly referred to as 2-foot U-shaped lamps) with medium bipin bases of nominal overall length between 22 and 25 inches and rated wattage of 28 or 

more. 

`(iii) Any rapid start lamp (commonly referred to as 8-foot high output lamps) with recessed 

double contact bases of nominal overall length of 96 inches and 0.800 nominal amperes, as 

defined in ANSI C78.1-1978 and related supplements. 

`(iv) Any instant start lamp (commonly referred to as 8-foot slimline lamps) with single pin 

bases of nominal overall length of 96 inches and rated wattage of 52 or more, as defined in 

ANSI C78.3-1978 (R1984) and related supplement ANSI C78.3a-1985. 

`(B) The term `general service fluorescent lamp' means fluorescent lamps which can be used to 

satisfy the majority of fluorescent applications, but does not include any lamp designed and 

marketed for the following nongeneral lighting applications: 

`(i) Fluorescent lamps designed to promote plant growth. 

`(ii) Fluorescent lamps specifically designed for cold temperature installations. 

`(iii) Colored fluorescent lamps. 

`(iv) Impact-resistant fluorescent lamps. 

`(v) Reflectorized or aperture lamps.

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`(vi) Fluorescent lamps designed for use in reprographic equipment. 

`(vii) Lamps primarily designed to produce radiation in the ultra-violet region of the 

spectrum. 

`(viii) Lamps with a color rendering index of 82 or greater. 

`(C) Except as provided in subparagraph (E), the term `incandescent lamp' means a lamp in which 

light is produced by a filament heated to incandescence by an electric current, including only the 

following: 

`(i) Any lamp (commonly referred to as lower wattage nonreflector general service lamps, 

including any tungsten-halogen lamp) that has a rated wattage between 30 and 199 watts, 

has an E26 medium screw base, has a rated voltage or voltage range that lies at least 

partially within 115 and 130 volts, and is not a reflector lamp. 

`(ii) Any lamp (commonly referred to as a reflector lamp) which is not colored or designed 

for rough or vibration service applications, that contains an inner reflective coating on the 

outer bulb to direct the light, an R, PAR, or similar bulb shapes (excluding ER or BR) with 

E26 medium screw bases, a rated voltage or voltage range that lies at least partially within 

115 and 130 volts, a diameter which exceeds 2.75 inches, and is either-- 

`(I) a low(er) wattage reflector lamp which has a rated wattage between 40 and 205 

watts; or 

`(II) a high(er) wattage reflector lamp which has a rated wattage above 205 watts. 

`(iii) Any general service incandescent lamp (commonly referred to as a high- or higherwattage lamp) that has a rated wattage above 199 watts (above 205 watts for a high wattage 

reflector lamp). 

`(D) The term `general service incandescent lamp' means any incandescent lamp (other than a 

miniature or photographic lamp) that has an E26 medium screw base, a rated voltage range at least 

partially within 115 and 130 volts, and which can be used to satisfy the majority of lighting 

applications, but does not include any lamps specifically designed for-- 

`(i) traffic signal, or street lighting service; 

`(ii) airway, airport, aircraft, or other aviation service; 

`(iii) marine or marine signal service; 

`(iv) photo, projection, sound reproduction, or film viewer service; 

`(v) stage, studio, or television service; 

`(vi) mill, saw mill, or other industrial process service; 

`(vii) mine service; 

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`(viii) headlight, locomotive, street railway, or other transportation service; 

`(ix) heating service; 

`(x) code beacon, marine signal, lighthouse, reprographic, or other communication service; 

`(xi) medical or dental service; 

`(xii) microscope, map, microfilm, or other specialized equipment service; 

`(xiii) swimming pool or other underwater service; 

`(xiv) decorative or showcase service; 

`(xv) producing colored light; 

`(xvi) shatter resistance which has an external protective coating; or 

`(xvii) appliance service. 

`(E) The terms `fluorescent lamp' and `incandescent lamp' do not include any lamp excluded by 

the Secretary, by rule, as a result of a determination that standards for such lamp would not result 

in significant energy savings because such lamp is designed for special applications or has special 

characteristics not available in reasonably substitutable lamp types. 

`(F) The term `incandescent reflector lamp' means a lamp described in subparagraph (C)(ii). 

`(G) The term `average lamp efficacy' means the lamp efficacy readings taken over a statistically 

significant period of manufacture with the readings averaged over that period. 

`(H) The term `base' means the portion of the lamp which connects with the socket as described in 

ANSI C81.61-1990. 

`(I) The term `bulb shape' means the shape of lamp, especially the glass bulb with designations for 

bulb shapes found in ANSI C79.1-1980 (R1984). 

`(J) The term `color rendering index' or `CRI' means the measure of the degree of color shift 

objects undergo when illuminated by a light source as compared with the color of those same 

objects when illuminated by a reference source of comparable color temperature. 

`(K) The term `correlated color temperature' means the absolute temperature of a blackbody whose 

chromaticity most nearly resembles that of the light source. 

`(L) The term `IES' means the Illuminating Engineering Society of North America. 

`(M) The term `lamp efficacy' means the lumen output of a lamp divided by its wattage, expressed 

in lumens per watt (LPW). 

`(N) The term `lamp type' means all lamps designated as having the same electrical and lighting 

characteristics and made by one manufacturer.

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`(O) The term `lamp wattage' means the total electrical power consumed by a lamp in watts, after 

the initial seasoning period referenced in the appropriate IES standard test procedure and 

including, for fluorescent, arc watts plus cathode watts. 

`(P) The terms `life' and `lifetime' mean length of operating time of a statistically large group of 

lamps between first use and failure of 50 percent of the group in accordance with test procedures 

described in the IES Lighting Handbook-Reference Volume. 

`(Q) The term `lumen output' means total luminous flux (power) of a lamp in lumens, as measured 

in accordance with applicable IES standards as determined by the Secretary. 

`(R) The term `tungsten-halogen lamp' means a gas-filled tungsten filament incandescent lamp 

containing a certain proportion of halogens in an inert gas. 

`(S) The term `medium base compact fluorescent lamp' means an integrally ballasted fluorescent 

lamp with a medium screw base and a rated input voltage of 115 to 130 volts and which is 

designed as a direct replacement for a general service incandescent lamp. 

`(31)(A) The term `water use' means the quantity of water flowing through a showerhead, faucet, 

water closet, or urinal at point of use, determined in accordance with test procedures under section 

323. 

`(B) The term `ASME' means the American Society of Mechanical Engineers. 

`(C) The term `ANSI' means the American National Standards Institute. 

`(D) The term `showerhead' means any showerhead (including a handheld showerhead), except a 

safety shower showerhead. 

`(E) The term `faucet' means a lavatory faucet, kitchen faucet, metering faucet, or replacement 

aerator for a lavatory or kitchen faucet. 

`(F) The term `water closet' has the meaning given such term in ASME A112.19.2M-1990, except 

such term does not include fixtures designed for installation in prisons. 

`(G) The term `urinal' has the meaning given such term in ASME A112.19.2M-1990, except such 

term does not include fixtures designed for installation in prisons. 

`(H) The terms `blowout', `flushometer tank', `low consumption', and `flushometer valve' have the 

meaning given such terms in ASME A112.19.2M-1990.'. 

(c) COVERAGE- Section 322(a) of such Act (42 U.S.C. 6292(a)) is amended-- 

(1) by redesignating paragraph (14) as paragraph (19); and 

(2) by inserting after paragraph (13) the following new paragraphs: 

`(14) General service fluorescent lamps and incandescent reflector lamps. 

`(15) Showerheads, except safety shower showerheads.

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`(16) Faucets. 

`(17) Water closets. 

`(18) Urinals.'. 

(d) TEST PROCEDURES- Section 323 of such Act (42 U.S.C. 6293) is amended-- 

(1) in subsection (b)-- 

(A) in paragraph (3), by inserting after `energy use,' the following `water use (in the case of 

showerheads, faucets, water closets and urinals),'; 

(B) in paragraph (4)-- 

(i) by inserting `or, in the case of showerheads, faucets, water closets, or urinals, water 

use' after `energy use'; 

(ii) by inserting after `such cycle' the following: `, or in the case of showerheads, 

faucets, water closets, or urinals, representative average unit costs of water and 

wastewater treatment service resulting from the operation of such products during 

such cycle'; and 

(iii) by inserting `, water, and wastewater treatment' before the period at the end of the 

second sentence; and 

(C) by adding at the end the following new paragraphs: 

`(6) With respect to fluorescent lamps and incandescent reflector lamps to which standards are applicable 

under subsection (i) of section 325, the Secretary shall prescribe test procedures, to be carried out by 

accredited test laboratories, that take into consideration the applicable IES or ANSI standard. 

`(7)(A) Test procedures for showerheads and faucets to which standards are applicable under subsection 

(j) of section 325 shall be the test procedures specified in ASME A112.18.1M-1989 for such products. 

`(B) If the test procedure requirements of ASME A112.18.1M-1989 are revised at any time and 

approved by ANSI, the Secretary shall amend the test procedures established by subparagraph (A) to 

conform to such revised ASME/ANSI requirements unless the Secretary determines, by rule, that to do 

so would not meet the requirements of paragraph (3). 

`(8)(A) Test procedures for water closets and urinals to which standards are applicable under subsection 

(k) of section 325 shall be the test procedures specified in ASME A112.19.6-1990 for such products. 

`(B) If the test procedure requirements of ASME A112.19.6-1990 are revised at any time and approved 

by ANSI, the Secretary shall amend the test procedures established by subparagraph (A) to conform to 

such revised ASME/ANSI requirements unless the Secretary determines, by rule, that to do so would not 

meet the requirements of paragraph (3).'; 

(2) in paragraphs (1) and (2) of subsection (c), by inserting `or, in the case of showerheads, 

faucets, water closets, and urinals, water use' after `efficiency' each place it appears; 

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(3) in subsection (c)(2), in the material preceding subparagraph (A), by inserting `or established' 

after `prescribed'; and 

(4) in subsection (e)-- 

(A) in paragraph (1), by striking out `or measured energy use' and inserting in lieu thereof `, 

measured energy use, or measured water use'; 

(B) in paragraph (2), by striking out `energy efficiency or energy use' each place it appears 

and inserting in lieu thereof `energy efficiency, energy use, or water use'; and 

(C) in paragraph (3), by striking out `energy efficiency or energy use' and inserting in lieu 

thereof `energy efficiency, energy use, or water use'. 

(e) LABELING- Section 324 of such Act (42 U.S.C. 6294) is amended-- 

(1) in subsection (a)(2), by adding at the end the following new subparagraphs: 

`(C)(i) Not later than 18 months after the date of the enactment of the Energy Policy Act of 1992, the 

Commission shall prescribe labeling rules under this section applicable to general service fluorescent 

lamps, medium base compact fluorescent lamps, and general service incandescent lamps. Except as 

provided in clause (ii), such rules shall provide that the labeling of any general service fluorescent lamp, 

medium base compact fluorescent lamp, and general service incandescent lamp manufactured after the 

12-month period beginning on the date of the publication of such rule shall indicate conspicuously on the 

packaging of the lamp, in a manner prescribed by the Commission under subsection (b), such 

information as the Commission deems necessary to enable consumers to select the most energy efficient 

lamps which meet their requirements. Labeling information for incandescent lamps shall be based on 

performance when operated at 120 volts input, regardless of the rated lamp voltage. 

`(ii) If the Secretary determines that compliance with the standards specified in section 325(j) for any 

lamp will result in the discontinuance of the manufacture of such lamp, the Commission may exempt 

such lamp from the labeling rules prescribed under clause (i). 

`(D)(i) Not later than one year after the date of the enactment of the Energy Policy Act of 1992, the 

Commission shall prescribe labeling rules under this section for showerheads and faucets to which 

standards are applicable under subsection (j) of section 325. Such rules shall provide that the labeling of 

any showerhead or faucet manufactured after the 12-month period beginning on the date of the 

publication of such rule shall be consistent with the marking and labeling requirements of ASME 

A112.18.1M-1989, except that each showerhead and flow restricting or controlling spout-end device 

shall bear a permanent legible marking indicating the flow rate, expressed in gallons per minute (gpm) or 

gallons per cycle (gpc), and the flow rate value shall be the actual flow rate or the maximum flow rate 

specified by the standards established in subsection (j) of section 325. 

`(ii) If the marking and labeling requirements of ASME A112.18.1M-1989 are revised at any time and 

approved by ANSI, the Commission shall amend the labeling rules established pursuant to clause (i) to 

be consistent with such revised ASME/ANSI requirements unless such requirements are inconsistent 

with the purposes of this Act or the requirement specified in clause (i) requiring each showerhead and 

flow restricting or controlling spout-end device to bear a permanent legible marking indicating the flow 

rate of such product. 

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`(E)(i) Not later than one year after the date of the enactment of the Energy Policy Act of 1992, the 

Commission shall prescribe labeling rules under this section for water closets and urinals to which 

standards are applicable under subsection (k) of section 325. Such rules shall provide that the labeling of 

any water closet or urinal manufactured after the 12-month period beginning on the date of the 

publication of such rule shall be consistent with the marking and labeling requirements of ASME 

A112.19.2M-1990, except that each fixture (and flushometer valve associated with such fixture) shall 

bear a permanent legible marking indicating the water use, expressed in gallons per flush (gpf), and the 

water use value shall be the actual water use or the maximum water use specified by the standards 

established in subsection (k) of section 325. 

`(ii) If the marking and labeling requirements of ASME A112.19.2M-1990 are revised at any time and 

approved by ANSI, the Commission shall amend the labeling rules established pursuant to clause (i) to 

be consistent with such revised ASME/ANSI requirements unless such requirements are inconsistent 

with the purposes of this Act or the requirement specified in clause (i) requiring each fixture and 

flushometer valve to bear a permanent legible marking indicating the water use of such fixture or 

flushometer valve. 

`(iii) Any labeling rules prescribed under this subparagraph before January 1, 1997, shall provide that, 

with respect to any gravity tank-type white 2-piece toilet which has a water use greater than 1.6 gallons 

per flush (gpf), any printed matter distributed or displayed in connection with such product (including 

packaging and point of sale material, catalog material, and print advertising) shall include, in a 

conspicuous manner, the words `For Commercial Use Only'.'; 

(2) in subsection (a)(3), by striking out `(14)' and inserting in lieu thereof `(19)'; 

(3) in subsection (b)(1)(B), by striking out `(14)' and inserting in lieu thereof `(13), and paragraphs 

(15) through (19)'; 

(4) in paragraphs (3) and (5) of subsection (b), by striking out `(14)' and inserting in lieu thereof `

(19)'; and 

(5) in subsection (c)-- 

(A) in paragraph (7), by striking out `paragraph (13) of section 322' and inserting in lieu 

thereof `paragraphs (13), (14), (15), (16), (17), and (18) of section 322(a)'; and 

(B) by adding at the end the following: 

`(8) If a manufacturer of a covered product specified in paragraph (15) or (17) of section 322(a) elects to 

provide a label for such covered product conveying the estimated annual operating cost of such product 

or the range of estimated annual operating costs for the type or class of such product-- 

`(A) such estimated cost or range of costs shall be determined in accordance with test procedures 

prescribed under section 323; 

`(B) the format of such label shall be in accordance with a format prescribed by the Commission; 

and 

`(C) such label shall be displayed in a manner, prescribed by the Commission, to be likely to assist 

consumers in making purchasing decisions and appropriate to carry out the purposes of this Act.'.

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(f) STANDARDS- Section 325 of such Act (42 U.S.C. 6295) is amended-- 

(1) by redesignating subsections (i) through (q) as subsections (l) through (t); 

(2) by inserting after subsection (h) the following: 

`(i) GENERAL SERVICE FLUORESCENT LAMPS AND INCANDESCENT REFLECTOR LAMPS- 

(1)(A) Each of the following general service fluorescent lamps and incandescent reflector lamps 

manufactured after the effective date specified in the tables listed in this paragraph shall meet or exceed 

the following lamp efficacy and CRI standards: 

`FLUORESCENT LAMPS 

------------------------------------------------------------------------------------------

 `Lamp Type Nominal Lamp Wattage Minimum CRI Minimum Average Lamp Efficacy (LPW) 

------------------------------------------------------------------------------------------

4-foot medium bi-pin >35W 69 75.0 

 3⁄435W 45 75.0 

 2-foot U-shaped >35W 69 68.0 

 3⁄435W 45 64.0 

 8-foot slimline 65W 69 80.0 

 3⁄465W 45 80.0 

 8-foot high output >100W 69 80.0 

 3⁄4100W 45 80.0 

------------------------------------------------------------------------------------------

`INCANDESCENT REFLECTOR LAMPS 

---------------------------------------------------------------------------------- 

`Nominal Lamp Wattage Minimum Average Lamp Efficacy (LPW) Effective Date (Months) 

---------------------------------------------------------------------------------- 

 40-50 10.5 36 

 51-66 11.0 36 

 67-85 12.5 36 

 86-115 14.0 36 

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 116-155 14.5 36 

 156-205 15.0 36 

---------------------------------------------------------------------------------- 

`(B) For the purposes of the tables set forth in subparagraph (A), the term `effective date' means the last 

day of the month set forth in the table which follows the date of the enactment of the Energy Policy Act 

of 1992. 

`(2) Notwithstanding section 332(a)(5) and section 332(b), it shall not be unlawful for a manufacturer to 

sell a lamp which is in compliance with the law at the time such lamp was manufactured. 

`(3) Not less than 36 months after the date of the enactment of this subsection, the Secretary shall initiate 

a rulemaking procedure and shall publish a final rule not later than the end of the 54-month period 

beginning on the date of the enactment of this subsection to determine if the standards established under 

paragraph (1) should be amended. Such rule shall contain such amendment, if any, and provide that the 

amendment shall apply to products manufactured on or after the 36-month period beginning on the date 

such final rule is published. 

`(4) Not less than eight years after the date of the enactment of this subsection, the Secretary shall initiate 

a rulemaking procedure and shall publish a final rule not later than nine years and six months after the 

date of the enactment of this subsection to determine if the standards in effect for fluorescent lamps and 

incandescent lamps should be amended. Such rule shall contain such amendment, if any, and provide 

that the amendment shall apply to products manufactured on or after the 36-month period beginning on 

the date such final rule is published. 

`(5) Not later than the end of the 24-month period beginning on the date labeling requirements under 

section 324(a)(2)(C) become effective, the Secretary shall initiate a rulemaking procedure to determine if

the standards in effect for fluorescent lamps and incandescent lamps should be amended so that they 

would be applicable to additional general service fluorescent and general service incandescent lamps and 

shall publish, not later than 18 months after initiating such rulemaking, a final rule including such 

amended standards, if any. Such rule shall provide that the amendment shall apply to products 

manufactured after a date which is 36 months after the date such rule is published. 

`(6)(A) With respect to any lamp to which standards are applicable under this subsection or any lamp 

specified in section 346, the Secretary shall inform any Federal entity proposing actions which would 

adversely impact the energy consumption or energy efficiency of such lamp of the energy conservation 

consequences of such action. It shall be the responsibility of such Federal entity to carefully consider the 

Secretary's comments. 

`(B) Notwithstanding section 325(n)(1), the Secretary shall not be prohibited from amending any 

standard, by rule, to permit increased energy use or to decrease the minimum required energy efficiency 

of any lamp to which standards are applicable under this subsection if such action is warranted as a result 

of other Federal action (including restrictions on materials or processes) which would have the effect of 

either increasing the energy use or decreasing the energy efficiency of such product. 

`(7) Not later than the date on which standards established pursuant to this subsection become effective, 

or, with respect to high-intensity discharge lamps covered under section 346, the effective date of 

standards established pursuant to such section, each manufacturer of a product to which such standards 

are applicable shall file with the Secretary a laboratory report certifying compliance with the applicable 

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standard for each lamp type. Such report shall include the lumen output and wattage consumption for 

each lamp type as an average of measurements taken over the preceding 12-month period. With respect 

to lamp types which are not manufactured during the 12-month period preceding the date such standards 

become effective, such report shall be filed with the Secretary not later than the date which is 12 months 

after the date manufacturing is commenced and shall include the lumen output and wattage consumption 

for each such lamp type as an average of measurements taken during such 12-month period. 

`(j) STANDARDS FOR SHOWERHEADS AND FAUCETS- (1) The maximum water use allowed for 

any showerhead manufactured after January 1, 1994, is 2.5 gallons per minute when measured at a 

flowing water pressure of 80 pounds per square inch. Any such showerhead shall also meet the 

requirements of ASME/ANSI A112.18.1M-1989, 7.4.3(a). 

`(2) The maximum water use allowed for any of the following faucets manufactured after January 1, 

1994, when measured at a flowing water pressure of 80 pounds per square inch, is as follows: 

`Lavatory faucets 

2.5 gallons per minute 

`Lavatory replacement aerators 

2.5 gallons per minute 

`Kitchen faucets 

2.5 gallons per minute 

`Kitchen replacement aerators 

2.5 gallons per minute 

`Metering faucets 

0.25 gallons per cycle 

`(3)(A) If the maximum flow rate requirements or the design requirements of ASME/ANSI Standard 

A112.18.1M-1989 are amended to improve the efficiency of water use of any type or class of 

showerhead or faucet and are approved by ANSI, the Secretary shall, not later than 12 months after the 

date of such amendment, publish a final rule establishing an amended uniform national standard for that 

product at the level specified in the amended ASME/ANSI Standard A112.18.1M and providing that 

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such standard shall apply to products manufactured after a date which is 12 months after the publication 

of such rule, unless the Secretary determines, by rule published in the Federal Register, that adoption of a 

uniform national standard at the level specified in such amended ASME/ANSI Standard A112.18.1M-- 

`(i) is not technologically feasible and economically justified under subsection (o); 

`(ii) is not consistent with the maintenance of public health and safety; or 

`(iii) is not consistent with the purposes of this Act. 

`(B)(i) As part of the rulemaking conducted under subparagraph (A), the Secretary shall also determine if

adoption of a uniform national standard for any type or class of showerhead or faucet more stringent than 

such amended ASME/ANSI Standard A112.18.1M-- 

`(I) would result in additional conservation of energy or water; 

`(II) would be technologically feasible and economically justified under subsection (o); and 

`(III) would be consistent with the maintenance of public health and safety. 

`(ii) If the Secretary makes an affirmative determination under clause (i), the final rule published under 

subparagraph (A) shall waive the provisions of section 327(c) with respect to any State regulation 

concerning the water use or water efficiency of such type or class of showerhead or faucet if such State 

regulation-- 

`(I) is more stringent than amended ASME/ANSI Standard A112.18.1M for such type or class of 

showerhead or faucet and the standard in effect for such product on the day before the date on 

which a final rule is published under subparagraph (A); and 

`(II) is applicable to any sale or installation of all products in such type or class of showerhead or 

faucet. 

`(C) If, after any period of five consecutive years, the maximum flow rate requirements of the 

ASME/ANSI standard for showerheads are not amended to improve the efficiency of water use of such 

products, or after any such period such requirements for faucets are not amended to improve the 

efficiency of water use of such products, the Secretary shall, not later than six months after the end of 

such five-year period, publish a final rule waiving the provisions of section 327(c) with respect to any 

State regulation concerning the water use or water efficiency of such type or class of showerhead or 

faucet if such State regulation-- 

`(i) is more stringent than the standards in effect for such type of class of showerhead or faucet; 

and 

`(ii) is applicable to any sale or installation of all products in such type or class of showerhead or 

faucet. 

`(k) STANDARDS FOR WATER CLOSETS AND URINALS- (1)(A) Except as provided in 

subparagraph (B), the maximum water use allowed in gallons per flush for any of the following water 

closets manufactured after January 1, 1994, is the following:

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`Gravity tank-type toilets 

--1.6 gpf. 

`Flushometer tank toilets 

--1.6 gpf. 

`Electromechanical hydraulic toilets 

--1.6 gpf. 

`Blowout toilets 

--3.5 gpf. 

`(B) The maximum water use allowed for any gravity tank-type white 2-piece toilet which bears an 

adhesive label conspicuous upon installation consisting of the words `Commercial Use Only' 

manufactured after January 1, 1994, and before January 1, 1997, is 3.5 gallons per flush. 

`(C) The maximum water use allowed for flushometer valve toilets, other than blowout toilets, 

manufactured after January 1, 1997, is 1.6 gallons per flush. 

`(2) The maximum water use allowed for any urinal manufactured after January 1, 1994, is 1.0 gallon per 

flush. 

`(3)(A) If the maximum flush volume requirements of ASME Standard A112.19.6-1990 are amended to 

improve the efficiency of water use of any low consumption water closet or low consumption urinal and 

are approved by ANSI, the Secretary shall, not later than 12 months after the date of such amendment, 

publish a final rule establishing an amended uniform national standard for that product at the level 

specified in amended ASME/ANSI Standard A112.19.6 and providing that such standard shall apply to 

products manufactured after a date which is one year after the publication of such rule, unless the 

Secretary determines, by rule published in the Federal Register, that adoption of a uniform national 

standard at the level specified in such amended ASME/ANSI Standard A112.19.6-- 

`(i) is not technologically feasible and economically justified under subsection (o); 

`(ii) is not consistent with the maintenance of public health and safety; or 

`(iii) is not consistent with the purposes of this Act. 

`(B)(i) As part of the rulemaking conducted under subparagraph (A), the Secretary shall also determine if

adoption of a uniform national standard for any type or class of low consumption water closet or low 

consumption urinal more stringent than such amended ASME/ANSI Standard A112.19.6 for such 

product-- 

`(I) would result in additional conservation of energy or water; 

`(II) would be technologically feasible and economically justified under subsection (o); and

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`(III) would be consistent with the maintenance of public health and safety. 

`(ii) If the Secretary makes an affirmative determination under clause (i), the final rule published under 

subparagraph (A) shall waive the provisions of section 327(c) with respect to any State regulation 

concerning the water use or water efficiency of such type or class of low consumption water closet or 

low consumption urinal if such State regulation-- 

`(I) is more stringent than amended ASME/ANSI Standard A112.19.6 for such type or class of low 

consumption water closet or low consumption urinal and the standard in effect for such product on 

the day before the date on which a final rule is published under subparagraph (A); and 

`(II) is applicable to any sale or installation of all products in such type or class of low 

consumption water closet or low consumption urinal. 

`(C) If, after any period of five consecutive years, the maximum flush volume requirements of the 

ASME/ANSI standard for low consumption water closets are not amended to improve the efficiency of 

water use of such products, or after any such period such requirements for low consumption urinals are 

not amended to improve the efficiency of water use of such products, the Secretary shall, not later than 

six months after the end of such five-year period, publish a final rule waiving the provisions of section 

327(c) with respect to any State regulation concerning the water use or water efficiency of such type or 

class of water closet or urinal if such State regulation-- 

`(i) is more stringent than the standards in effect for such type or class of water closet or urinal; 

and 

`(ii) is applicable to any sale or installation of all products in such type or class of water closet or 

urinal.'; 

(3) in subsection (l) (as redesignated by paragraph (1) of this subsection)-- 

(A) in paragraphs (1) and (2), by striking out `(14)' and inserting in lieu thereof `(19)'; and 

(B) in paragraphs (1) and (3), by striking out `(l) and (m)' and inserting in lieu thereof `(o) 

and (p)'; 

(4) in subsection (m) (as redesignated by paragraph (1) of this subsection), by striking out `(h)' and 

inserting in lieu thereof `(i)'; 

(5) in subsection (n) (as redesignated by paragraph (1) of this subsection)-- 

(A) in paragraph (1)-- 

(i) by striking out `and in paragraph (13)' and inserting in lieu thereof `, and in 

paragraphs (13) and (14)'; and 

(ii) by striking out `(h)' and inserting in lieu thereof `(i)'; 

(B) in paragraph (2)(C), by striking out `(l)(2)(B)(i)(II)' and inserting in lieu thereof `(o)(2)

(B)(i)(II)'; and

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(C) in paragraph (3)(B), by inserting `general service fluorescent lamps, incandescent 

reflector lamps,' after `fluorescent lamp ballasts,'; 

(6) in subsection (o) (as redesignated by paragraph (1) of this subsection)-- 

(A) in paragraph (1), by inserting `or, in the case of showerheads, faucets, water closets, or 

urinals, water use,' after `energy use,'; 

(B) in paragraph (2)(A), by inserting `, or, in the case of showerheads, faucets, water closets, 

or urinals, water efficiency,' after `energy efficiency'; 

(C) in paragraph (2)(B)(i)(III), by inserting `, or as applicable, water,' after `energy'; 

(D) in paragraph (2)(B)(i)(VI), by inserting `and water' after `energy'; 

(E) in paragraph (2)(B)(iii), by striking out `energy savings' and inserting `energy, and as 

applicable, water savings'; and 

(F) in paragraph (3)(B), by inserting `, in the case of showerheads, faucets, water closets, or 

urinals, water, or' after `energy or'; and 

(7) in subsection (p)(3)(A) (as redesignated by paragraph (1) of this subsection)-- 

(A) by striking out `(l)(2)' and inserting in lieu thereof `(o)(2)'; and 

(B) by striking out `(l)(4)' and inserting in lieu thereof `(o)(4)'. 

(g) REQUIREMENTS OF MANUFACTURERS- Section 326 of such Act (42 U.S.C. 6296) is amended-

- 

(1) in subsection (b)(4), by inserting `or water use' after `consumption'; and 

(2) in subsection (d)(1), by striking out `or energy use' and inserting in lieu thereof `, energy use, 

or, in the case of showerheads, faucets, water closets, and urinals, water use'. 

(h) EFFECT ON OTHER LAW- Section 327 of such Act (42 U.S.C. 6297) is amended-- 

(1) in subsection (a)-- 

(A) in paragraph (1), in the material preceding subparagraph (A), by inserting `or water use' 

after `energy consumption'; 

(B) in paragraph (1)(A), by inserting `, water use,' after `energy consumption'; 

(C) in paragraph (1)(B), by striking out `or energy efficiency' and inserting in lieu thereof `, 

energy efficiency, or water use'; and 

(D) by amending paragraph (2) to read as follows: 

`(2) For purposes of this section, the following definitions apply:

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`(A) The term `State regulation' means a law, regulation, or other requirement of a State or its 

political subdivisions. With respect to showerheads, faucets, water closets, and urinals, such term 

shall also mean a law, regulation, or other requirement of a river basin commission that has 

jurisdiction within a State. 

`(B) The term `river basin commission' means-- 

`(i) a commission established by interstate compact to apportion, store, regulate, or 

otherwise manage or coordinate the management of the waters of a river basin; and 

`(ii) a commission established under section 201(a) of the Water Resources Planning Act 

(42 U.S.C. 1962b(a)).'; 

(2) in subsection (b)-- 

(A) in the material preceding paragraph (1), by striking out `or energy use of the covered 

product' and inserting in lieu thereof `, energy use, or water use of the covered product'; 

(B) by inserting before the semicolon at the end of paragraph (1) the following: `, or in the 

case of any portion of any regulation which establishes requirements for fluorescent or 

incandescent lamps, flow rate requirements for showerheads or faucets, or water use 

requirements for water closets or urinals, was prescribed or enacted before the date of the 

enactment of the Energy Policy Act of 1992'; 

(C) in paragraph (4), by inserting before the semicolon at the end the following: `, or is a 

regulation (or portion thereof) regulating fluorescent or incandescent lamps other than those 

to which section 325(i) is applicable, or is a regulation (or portion thereof) regulating 

showerheads or faucets other than those to which section 325(j) is applicable or regulating 

lavatory faucets (other than metering faucets) for installation in public places, or is a 

regulation (or portion thereof) regulating water closets or urinals other than those to which 

section 325(k) is applicable'; 

(D) in paragraph (5), by striking out `or'; 

(E) in paragraph (6), by striking out the period at the end and inserting `; or'; and 

(F) by adding at the end the following new paragraph: 

`(7) is a regulation (or portion thereof) concerning the water efficiency or water use of low 

consumption flushometer valve water closets.'; 

(3) in subsection (c)-- 

(A) in the material preceding paragraph (1)-- 

(i) by inserting `, subparagraphs (B) and (C) of section 325(j)(3), and subparagraphs 

(B) and (C) of section 325(k)(3)' after `section 325(b)(3)(A)(ii)'; and 

(ii) by striking out `or energy use' and inserting in lieu thereof the following: `, energy 

use, or water use'; 

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(B) in paragraph (1), by inserting before the semicolon at the end the following: `, except 

that a State regulation (or portion thereof) regulating fluorescent or incandescent lamps other 

than those for which section 325(i) is applicable shall be effective only until the effective 

date of a standard that is prescribed by the Secretary and is applicable to such lamps'; 

(C) in paragraph (2), by striking out `or'; 

(D) in paragraph (3), by striking out the period at the end and inserting a semicolon; and 

(E) by adding at the end the following new paragraphs: 

`(4) is a regulation concerning the water use of lavatory faucets adopted by the State of New York 

or the State of Georgia before the date of the enactment of the Energy Policy Act of 1992; 

`(5) is a regulation concerning the water use of lavatory or kitchen faucets adopted by the State of 

Rhode Island prior to the date of the enactment of the Energy Policy Act of 1992; or 

`(6) is a regulation (or portion thereof) concerning the water efficiency or water use of gravity 

tank-type low consumption water closets for installation in public places, except that such a 

regulation shall be effective only until January 1, 1997.'; 

(4) in subsection (d)(1)-- 

(A) in subparagraph (A)-- 

(i) by inserting `or river basin commission' after `Any State'; and 

(ii) by striking out `or energy efficiency' and inserting in lieu thereof `, energy 

efficiency, or water use'; 

(B) in subparagraph (B)-- 

(i) by striking out `State has' and inserting `State or river basin commission has'; and 

(ii) by inserting `or water' after `energy'; 

(C) in subparagraph (C)-- 

(i) in the material preceding clause (i) and in clause (ii), by inserting `or water' after 

`energy' each place it appears; and 

(ii) by inserting before the period at the end the following: `, and, with respect to a 

State regulation for which a petition has been submitted to the Secretary which 

provides for any energy conservation standard or requirement with respect to water 

use of a covered product, within the context of the water supply and groundwater 

management plan, water quality program, and comprehensive plan (if any) of the 

State or river basin commission for improving, developing, or conserving a waterway 

affected by water supply development'; and 

(5) in subsection (d)(5)(B), by striking clause (i) and inserting the following: 

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`(i) there exists within the State an energy emergency condition or, if the State regulation 

provides for an energy conservation standard or other requirement with respect to the water 

use of a covered product for which there is a Federal energy conservation standard under 

subsection (j) or (k) of section 325, a water emergency condition, which-- 

`(I) imperils the health, safety, and welfare of its residents because of the inability of 

the State or utilities within the State to provide adequate quantities of gas or electric 

energy or, in the case of a water emergency condition, water or wastewater treatment, 

to its residents at less than prohibitive costs; and 

`(II) cannot be substantially alleviated by the importation of energy or, in the case of a 

water emergency condition, by the importation of water, or by the use of 

interconnection agreements; and'. 

(i) INCENTIVE PROGRAMS- Section 337 of such Act (42 U.S.C. 6307) is amended-- 

(1) by striking out `337.' and inserting `337. (a) IN GENERAL- '; and 

(2) by adding at the end the following: 

`(b) STATE AND LOCAL INCENTIVE PROGRAMS- (1) The Secretary shall, not later than one year 

after the date of the enactment of this subsection, issue recommendations to the States for establishing 

State and local incentive programs designed to encourage the acceleration of voluntary replacement, by 

consumers, of existing showerheads, faucets, water closets, and urinals with those products that meet the 

standards established for such products pursuant to subsections (j) and (k) of section 325. 

`(2) In developing such recommendations, the Secretary shall consult with the heads of other federal 

agencies, including the Administrator of the Environmental Protection Agency; State officials; 

manufacturers, suppliers, and installers of plumbing products; and other interested parties.'. 

SEC. 124. HIGH-INTENSITY DISCHARGE LAMPS, DISTRIBUTION TRANSFORMERS, AND 

SMALL ELECTRIC MOTORS. 

(a) STANDARDS- Section 346 of the Energy Policy and Conservation Act (42 U.S.C. 6317) is amended 

to read as follows: 

`ENERGY CONSERVATION STANDARDS FOR HIGHINTENSITY DISCHARGE LAMPS, DISTRIBUTION 

TRANSFORMERS, AND SMALL ELECTRIC MOTORS 

`SEC. 346. (a)(1) The Secretary shall, within 30 months after the date of the enactment of the Energy 

Policy Act of 1992, prescribe testing requirements for those high-intensity discharge lamps and 

distribution transformers for which the Secretary makes a determination that energy conservation 

standards would be technologically feasible and economically justified, and would result in significant 

energy savings. 

`(2) The Secretary shall, within 18 months after the date on which testing requirements are prescribed by 

the Secretary pursuant to paragraph (1), prescribe, by rule, energy conservation standards for those highintensity discharge lamps and distribution transformers for which the Secretary prescribed testing

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requirements under paragraph (1). 

`(3) Any standard prescribed under paragraph (2) with respect to high-intensity discharge lamps shall 

apply to such lamps manufactured 36 months after the date such rule is published. 

`(b)(1) The Secretary shall, within 30 months after the date of the enactment of the Energy Policy Act of 

1992, prescribe testing requirements for those small electric motors for which the Secretary makes a 

determination that energy conservation standards would be technologically feasible and economically 

justified, and would result in significant energy savings. 

`(2) The Secretary shall, within 18 months after the date on which testing requirements are prescribed by 

the Secretary pursuant to paragraph (1), prescribe, by rule, energy conservation standards for those small 

electric motors for which the Secretary prescribed testing requirements under paragraph (1). 

`(3) Any standard prescribed under paragraph (2) shall apply to small electric motors manufactured 60 

months after the date such rule is published or, in the case of small electric motors which require listing 

or certification by a nationally recognized testing laboratory, 84 months after such date. Such standards 

shall not apply to any small electric motor which is a component of a covered product under section 322

(a) or a covered equipment under section 340. 

`(c) In establishing any standard under this section, the Secretary shall take into consideration the criteria 

contained in section 325(n). 

`(d) The Secretary shall, within six months after the date on which energy conservation standards are 

prescribed by the Secretary for high-intensity discharge lamps and distribution transformers pursuant to 

subsection (a)(2) and small electric motors pursuant to subsection (b)(2), prescribe labeling requirements 

for such lamps, transformers, and small electric motors. 

`(e) Beginning on the date which occurs six months after the date on which a labeling rule is prescribed 

for a product under subsection (d), each manufacturer of a product to which such a rule applies shall 

provide a label which meets, and is displayed in accordance with, the requirements of such rule. 

`(f)(1) After the date on which a manufacturer must provide a label for a product pursuant to subsection 

(e)-- 

`(A) each such product shall be considered, for purposes of paragraphs (1) and (2) of section 332

(a), a new covered product to which a rule under section 324 applies; and 

`(B) it shall be unlawful for any manufacturer or private labeler to distribute in commerce any new 

product for which an energy conservation standard is prescribed under subsection (a)(2) or (b)(2) 

which is not in conformity with the applicable energy conservation standard. 

`(2) For purposes of section 333(a), paragraph (1) of this subsection shall be considered to be a part of 

section 332.'. 

(b) TECHNICAL AMENDMENT- The table of contents of such Act is amended by striking out the item 

for section 346 and inserting in lieu thereof the following new item: 

`Sec. 346. Energy conservation standards for high-intensity discharge lamps, distribution 

transformers, and small electric motors.'.

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(c) STUDY OF UTILITY DISTRIBUTION TRANSFORMERS- The Secretary shall evaluate the 

practicability, cost-effectiveness, and potential energy savings of replacing, or upgrading components of, 

existing utility distribution transformers during routine maintenance and, not later than 18 months after 

the date of the enactment of this Act, report the findings of such evaluation to the Congress with 

recommendations on how such energy savings, if any, could be achieved. 

SEC. 125. ENERGY EFFICIENCY INFORMATION FOR COMMERCIAL OFFICE EQUIPMENT. 

(a) IN GENERAL- (1) The Secretary shall, after consulting with the Computer and Business Equipment 

Manufacturers Association and other interested organizations, provide financial and technical assistance 

to support a voluntary national testing and information program for those types of commercial office 

equipment that are widely used and for which there is a potential for significant energy savings as a 

result of such program. 

(2) Such program shall-- 

(A) consistent with the objectives of paragraph (1), determine the commercial office equipment to 

be covered under such program; 

(B) include specifications for testing procedures that will enable purchasers of such commercial 

office equipment to make more informed decisions about the energy efficiency and costs of 

alternative products; and 

(C) include information, which may be disseminated through catalogs, trade publications, labels, 

or other mechanisms, that will allow consumers to assess the energy consumption and potential 

cost savings of alternative products. 

(3) Such program shall be developed by an appropriate organization (composed of interested parties) 

according to commonly accepted procedures for the development of national testing procedure and 

labeling programs. 

(b) MONITORING- The Secretary shall monitor and evaluate the efforts to develop the program 

described in subsection (a) and, not later than three years after the date of the enactment of this Act, shall 

make a determination as to whether such program is consistent with the objectives of subsection (a). 

(c) ALTERNATIVE SYSTEM- (1) If the Secretary makes a determination under subsection (b) that a 

voluntary national testing and information program for commercial office equipment consistent with the 

objectives of subsection (a) has not been developed, the Secretary shall, after consultation with the 

National Institute of Standards and Technology, develop, not later than two years after such 

determination, test procedures under section 323 of the Energy Policy and Conservation Act (42 U.S.C. 

6293) for such commercial office equipment. 

(2) Not later than one year after the Secretary develops test procedures under paragraph (1), the Federal 

Trade Commission (hereafter in this section referred to as the `Commission') shall prescribe labeling 

rules under section 324 of such Act (42 U.S.C. 6294) for commercial office equipment for which the 

Secretary has prescribed test procedures under paragraph (1) except that, with respect to any type of 

commercial office equipment (or class thereof), the Secretary may determine that such labeling is not 

technologically feasible or economically justified or is not likely to assist consumers in making 

purchasing decisions. 

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(3) For purposes of sections 323, 324, and 327 of such Act, each product for which the Secretary has 

established test procedures or labeling rules pursuant to this subsection shall be considered a new 

covered product under section 322 of such Act (42 U.S.C. 6292) to the extent necessary to carry out this 

subsection. 

(4) For purposes of section 327(a) of such Act, the term `this part' includes this subsection to the extent 

necessary to carry out this subsection. 

SEC. 126. ENERGY EFFICIENCY INFORMATION FOR LUMINAIRES. 

(a) IN GENERAL- (1) The Secretary shall, after consulting with the National Electric Manufacturers 

Association, the American Lighting Association, and other interested organizations, provide financial 

and technical assistance to support a voluntary national testing and information program for those types 

of luminaires that are widely used and for which there is a potential for significant energy savings as a 

result of such program. 

(2) Such program shall-- 

(A) consistent with the objectives of paragraph (1), determine the luminaires to be covered under 

such program; 

(B) include specifications for testing procedures that will enable purchasers of such luminaires to 

make more informed decisions about the energy efficiency and costs of alternative products; and 

(C) include information, which may be disseminated through catalogs, trade publications, labels, 

or other mechanisms, that will allow consumers to assess the energy consumption and potential 

cost savings of alternative products. 

(3) Such program shall be developed by an appropriate organization (composed of interested parties) 

according to commonly accepted procedures for the development of national testing procedures and 

labeling programs. 

(b) MONITORING- The Secretary shall monitor and evaluate the efforts to develop the program 

described in subsection (a) and, not later than three years after the date of the enactment of this Act, shall 

make a determination as to whether the program developed is consistent with the objectives of 

subsection (a). 

(c) ALTERNATIVE SYSTEM- (1) If the Secretary makes a determination under subsection (b) that a 

voluntary national testing and information program for luminaires consistent with the objectives of 

subsection (a) has not been developed, the Secretary shall, after consultation with the National Institute 

of Standards and Technology, develop, not later than two years after such determination, test procedures 

under section 323 of the Energy Policy and Conservation Act (42 U.S.C. 6293) for such luminaires. 

(2) Not later than one year after the Secretary develops test procedures under paragraph (1), the Federal 

Trade Commission (hereafter in this section referred to as the `Commission') shall prescribe labeling 

rules under section 324 of such Act (42 U.S.C. 6294) for those luminaires for which the Secretary has 

prescribed test procedures under paragraph (1) except that, with respect to any type of luminaire (or class 

thereof), the Secretary may determine that such labeling is not technologically feasible or economically 

justified or is not likely to assist consumers in making purchasing decisions.

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(3) For purposes of sections 323, 324, and 327 of such Act, each product for which the Secretary has 

established test procedures or labeling rules pursuant to this subsection shall be considered a new 

covered product under section 322 of such Act (42 U.S.C. 6292) to the extent necessary to carry out this 

subsection. 

(4) For purposes of section 327(a) of such Act, the term `this part' includes this subsection to the extent 

necessary to carry out this subsection. 

SEC. 127. REPORT ON THE POTENTIAL OF COOPERATIVE ADVANCED APPLIANCE 

DEVELOPMENT. 

(a) IN GENERAL- Not later than 18 months after the date of the enactment of this Act, the Secretary 

shall, in consultation with the Administrator of the Environmental Protection Agency, utilities, and 

appliance manufacturers, prepare and submit to the Congress, a report on the potential for the 

development and commercialization of appliances which are substantially more efficient than required 

by Federal or State law. 

(b) IDENTIFICATION OF HIGH-EFFICIENCY APPLIANCES- The report submitted under subsection 

(a) shall identify candidate high-efficiency appliances which meet the following criteria: 

(1) The potential exists for substantial improvement in the appliance's energy efficiency, beyond 

the minimum established in Federal and State law. 

(2) There is the potential for significant energy savings at the national or regional level. 

(3) Such appliances are likely to be cost-effective for consumers. 

(4) Electric, water, or gas utilities are prepared to support and promote the commercialization of 

such appliances. 

(5) Manufacturers are unlikely to undertake development and commercialization of such 

appliances on their own, or development and production would be substantially accelerated by 

support to manufacturers. 

(c) RECOMMENDATIONS AND PROPOSALS- The report submitted under subsection (a) shall also-- 

(1) describe the general actions the Secretary or the Administrator of the Environmental Protection 

Agency could take to coordinate and assist utilities and appliance manufacturers in developing and 

commercializing highly efficient appliances; 

(2) describe specific proposals for Department of Energy or Environmental Protection Agency 

assistance to utilities and appliance manufacturers to promote the development and 

commercialization of highly efficient appliances; 

(3) identify methods by which Federal purchase of highly efficient appliances could assist in the 

development and commercialization of such appliances; and 

(4) identify the funding levels needed to develop and implement a Federal program to assist in the 

development and commercialization of highly efficient appliances.

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SEC. 128. EVALUATION OF UTILITY EARLY REPLACEMENT PROGRAMS FOR APPLIANCES.

Within 18 months after the date of the enactment of this Act, the Secretary, in consultation with the 

Administrator of the Environmental Protection Agency, utilities, and appliance manufacturers, shall 

evaluate and report to the Congress on the energy savings and environmental benefits of programs which 

are directed to the early replacement of older, less efficient appliances presently in use by consumers 

with existing products which are more efficient than required by Federal law. For the purposes of this 

section, the term `appliance' means those consumer products specified in section 322(a). 

Subtitle D--Industrial 

SEC. 131. ENERGY EFFICIENCY IN INDUSTRIAL FACILITIES. 

(a) GRANT PROGRAM- 

(1) IN GENERAL- The Secretary shall make grants to industry associations to support programs 

to improve energy efficiency in industry. In order to be eligible for a grant under this subsection, 

an industry association shall establish a voluntary energy efficiency improvement target program. 

(2) AWARDING OF GRANTS- The Secretary shall request project proposals and provide annual 

grants on a competitive basis. In evaluating grant proposals under this subsection, the Secretary 

shall consider-- 

(A) potential energy savings; 

(B) potential environmental benefits; 

(C) the degree of cost sharing; 

(D) the degree to which new and innovative technologies will be encouraged; 

(E) the level of industry involvement; 

(F) estimated project cost-effectiveness; and 

(G) the degree to which progress toward the energy improvement targets can be monitored. 

(3) ELIGIBLE PROJECTS- Projects eligible for grants under this subsection may include the 

following: 

(A) Workshops. 

(B) Training seminars. 

(C) Handbooks. 

(D) Newsletters. 

(E) Data bases. 

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(F) Other activities approved by the Secretary. 

(4) LIMITATION ON COST SHARING- Grants provided under this subsection shall not exceed 

$250,000 and each grant shall not exceed 75 percent of the total cost of the project for which the 

grant is made. 

(5) AUTHORIZATION- There are authorized to be appropriated such sums as are necessary to 

carry out this subsection. 

(b) AWARD PROGRAM- The Secretary shall establish an annual award program to recognize those 

industry associations or individual industrial companies that have significantly improved their energy 

efficiency. 

(c) REPORT ON INDUSTRIAL REPORTING AND VOLUNTARY TARGETS- Not later than one 

year after the date of the enactment of this Act, the Secretary shall, in consultation with affected 

industries, evaluate and report to the Congress regarding the establishment of Federally mandated energy 

efficiency reporting requirements and voluntary energy efficiency improvement targets for energy 

intensive industries. Such report shall include an evaluation of the costs and benefits of such reporting 

requirements and voluntary energy efficiency improvement targets, and recommendations regarding the 

role of such activities in improving energy efficiency in energy intensive industries. 

SEC. 132. PROCESS-ORIENTED INDUSTRIAL ENERGY EFFICIENCY. 

(a) DEFINITIONS- For the purposes of this section-- 

(1) the term `covered industry' means the food and food products industry, lumber and wood 

products industry, petroleum and coal products industry, and all other manufacturing industries 

specified in Standard Industrial Classification Codes 20 through 39 (or successor classification 

codes); 

(2) the term `process-oriented industrial assessment' means-- 

(A) the identification of opportunities in the production process (from the introduction of 

materials to final packaging of the product for shipping) for-- 

(i) improving energy efficiency; 

(ii) reducing environmental impact; and 

(iii) designing technological improvements to increase competitiveness and achieve 

cost-effective product quality enhancement; 

(B) the identification of opportunities for improving the energy efficiency of lighting, 

heating, ventilation, air conditioning, and the associated building envelope; and 

(C) the identification of cost-effective opportunities for using renewable energy technology 

in the production process and in the systems described in subparagraph (B); and 

(3) the term `utility' means any person, State agency (including any municipality), or Federal 

agency, which sells electric or gas energy to retail customers.

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(b) GRANT PROGRAM- 

(1) USE OF FUNDS- The Secretary shall, to the extent funds are made available for such purpose, 

make grants to States which, consistent with State law, shall be used for the following purposes: 

(A) To promote, through appropriate institutions such as universities, nonprofit 

organizations, State and local government entities, technical centers, utilities, and trade 

organizations, the use of energy-efficient technologies in covered industries. 

(B) To establish programs to train individuals (on an industry-by-industry basis) in 

conducting process-oriented industrial assessments and to encourage the use of such trained 

assessors. 

(C) To assist utilities in developing, testing, and evaluating energy efficiency programs and 

technologies for industrial customers in covered industries. 

(2) CONSULTATION- States receiving grants under this subsection shall consult with utilities 

and representatives of affected industries, as appropriate, in determining the most effective use of 

such funds consistent with the requirements of paragraph (1). 

(3) ELIGIBILITY CRITERIA- Not later than 1 year after the date of the enactment of this Act, the 

Secretary shall establish eligibility criteria for grants made pursuant to this subsection. Such 

criteria shall require a State applying for a grant to demonstrate that such State-- 

(A) pursuant to section 111(a) of the Public Utility and Regulatory Policies Act of 1978 (16 

U.S.C. 2621(a)), has considered and made a determination regarding the implementation of 

the standards specified in paragraphs (7) and (8) of section 111(d) of such Act (with respect 

to integrated resources planning and investments in conservation and demand management); 

and 

(B) by legislation or regulation-- 

(i) allows utilities to recover the costs prudently incurred in providing processoriented industrial assessments; and 

(ii) encourages utilities to provide to covered industries-- 

(I) process-oriented industrial assessments; and 

(II) financial incentives for implementing energy efficiency improvements. 

(4) ALLOCATION OF FUNDS- Grants made pursuant to this subsection shall be allocated each 

fiscal year among States meeting the criteria specified in paragraph (3) who have submitted 

applications 60 days before the first day of such fiscal year. Such allocation shall be made in 

accordance with a formula to be prescribed by the Secretary based on each State's share of value 

added in industry (as determined by the Census of Manufacturers) as a percentage of the value 

added by all such States. 

(5) RENEWAL OF GRANTS- A grant under this subsection may continue to be renewed after 2 

consecutive fiscal years during which a State receives a grant under this subsection, subject to the 

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availability of funds, if-- 

(A) the Secretary determines that the funds made available to the State during the previous 2 

years were used in a manner required under paragraph (1); and 

(B) such State demonstrates, in a manner prescribed by the Secretary, utility participation in 

programs established pursuant to this subsection. 

(6) COORDINATION WITH OTHER FEDERAL PROGRAMS- In carrying out the functions 

described in paragraph (1), States shall, to the extent practicable, coordinate such functions with 

activities and programs conducted by the Energy Analysis and Diagnostic Centers of the 

Department of Energy and the Manufacturing Technology Centers of the National Institute of 

Standards and Technology. 

(c) OTHER FEDERAL ASSISTANCE- 

(1) ASSESSMENT CRITERIA- Not later than 2 years after the date of the enactment of this Act, 

the Secretary shall, by contract with nonprofit organizations with expertise in process-oriented 

industrial energy efficiency technologies, establish and, as appropriate, update criteria for 

conducting process-oriented industrial assessments on an industry-by-industry basis. Such criteria 

shall be made available to State and local government, public utility commissions, utilities, 

representatives of affected process-oriented industries, and other interested parties. 

(2) DIRECTORY- The Secretary shall establish a nationwide directory of organizations offering 

industrial energy efficiency assessments, technologies, and services consistent with the purposes 

of this section. Such directory shall be made available to State governments, public utility 

commissions, utilities, industry representatives, and other interested parties. 

(3) AWARD PROGRAM- The Secretary shall establish an annual award program to recognize 

utilities operating outstanding or innovative industrial energy efficiency technology assistance 

programs. 

(4) MEETINGS- In order to further the purposes of this section, the Secretary shall convene 

annual meetings of parties interested in process-oriented industrial assessments, including 

representatives of State government, public utility commissions, utilities, and affected processoriented industries. 

(d) REPORT- Not later than 2 years after the date of the enactment of this Act, and annually thereafter, 

the Secretary shall submit to the Congress a report which-- 

(1) identifies barriers encountered in implementing this section; 

(2) makes recommendations for overcoming such barriers; 

(3) documents the results achieved by the programs established and grants awarded pursuant to 

this section; 

(4) reviews any difficulties encountered by industry in securing and implementing energy 

efficiency technologies recommended in process-oriented industrial assessments or otherwise 

identified as a result of programs established pursuant to this section; and

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(5) recommends methods for further promoting the distribution and implementation of energy 

efficiency technologies consistent with the purposes of this section. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

may be necessary to carry out the purposes of this section. 

SEC. 133. INDUSTRIAL INSULATION AND AUDIT GUIDELINES. 

(a) VOLUNTARY GUIDELINES FOR ENERGY EFFICIENCY AUDITING AND INSULATINGNot later than 18 months after the date of the enactment of this Act, the Secretary, after consultation with 

utilities, major industrial energy consumers, and representatives of the insulation industry, shall establish 

voluntary guidelines for-- 

(1) the conduct of energy efficiency audits of industrial facilities to identify cost-effective 

opportunities to increase energy efficiency; and 

(2) the installation of insulation to achieve cost-effective increases in energy efficiency in 

industrial facilities. 

(b) EDUCATIONAL AND TECHNICAL ASSISTANCE- The Secretary shall conduct a program of 

educational and technical assistance to promote the use of the voluntary guidelines established under 

subsection (a). 

(c) REPORT- Not later than 2 years after the date of the enactment of this Act, and biennially thereafter, 

the Secretary shall report to the Congress on activities conducted pursuant to this section, including-- 

(1) a review of the status of industrial energy auditing procedures; and 

(2) an evaluation of the effectiveness of the guidelines established under subsection (a) and the 

responsiveness of the industrial sector to such guidelines. 

Subtitle E--State and Local Assistance 

SEC. 141. AMENDMENTS TO STATE ENERGY CONSERVATION PROGRAM. 

(a) STATE BUILDINGS ENERGY INCENTIVE FUND- 

(1) IN GENERAL- Section 363 of the Energy Policy and Conservation Act (42 U.S.C. 6323) is 

amended by adding at the end the following new subsection: 

`(f) If the Secretary determines that a State has demonstrated a commitment to improving the energy 

efficiency of buildings within such State, the Secretary may, beginning in fiscal year 1994, provide up to 

$1,000,000 to such State for deposit into a revolving fund established by such State for the purpose of 

financing energy efficiency improvements in State and local government buildings. In making such 

determination the Secretary shall consider whether-- 

`(1) such State, or a majority of the units of local government with jurisdiction over building 

energy codes within such State, has adopted codes for energy efficiency in new buildings that are 

at least as stringent as American Society of Heating, Refrigerating, and Air-Conditioning 

Engineers Standard 90.1-1989 (with respect to commercial buildings) and Council of American 

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Building Officials Model Energy Code, 1992 (with respect to residential buildings); 

`(2) such State has established a program, including a revolving fund, to finance energy efficiency 

improvement projects in State and local government facilities and buildings; and 

`(3) such State has obtained funding from non-Federal sources, including but not limited to, oil 

overcharge funds, State or local government appropriations, or utility contributions (including 

rebates) equal to or greater than three times the amount provided by the Secretary under this 

subsection for deposit into such revolving fund.'. 

(2) AUTHORIZATION OF APPROPRIATIONS- Section 365(f) of such Act (42 U.S.C. 6325(f)) 

is amended-- 

(A) by striking `(f) For the purpose' and inserting the following: `(f)(1) Except as provided 

in paragraph (2), for the purpose'; and 

(B) by inserting at the end the following: 

`(2) For the purposes of carrying out section 363(f), there is authorized to be appropriated for fiscal

year 1994 and each fiscal year thereafter such sums as may be necessary, to remain available until 

expended.'. 

(b) TRAINING OF BUILDING DESIGNERS AND CONTRACTORS; BUILDING RETROFIT 

STANDARDS; FEASIBILITY; RURAL RENEWABLE ENERGY- Subsection 362(d) of the Energy 

Policy and Conservation Act (42 U.S.C. 6322(d)) is amended-- 

(1) in paragraph (12) by striking `and'; 

(2) by redesignating paragraph (13) as paragraph (17); and 

(3) by inserting after paragraph (12) the following new paragraphs: 

`(13) programs (enlisting appropriate trade and professional organizations in the development and 

financing of such programs) to provide training and education (including, if appropriate, training 

workshops, practice manuals, and testing for each area of energy efficiency technology) to 

building designers and contractors involved in building design and construction or in the sale, 

installation, and maintenance of energy systems and equipment to promote building energy 

efficiency improvements; 

`(14) programs for the development of building retrofit standards and regulations, including 

retrofit ordinances enforced at the time of the sale of a building; 

`(15) support for prefeasibility and feasibility studies for projects that utilize renewable energy and 

energy efficiency resource technologies in order to facilitate access to capital and credit for such 

projects; 

`(16) programs to facilitate and encourage the voluntary use of renewable energy technologies for 

eligible participants in Federal agency programs, including the Rural Electrification 

Administration and the Farmers Home Administration; and'

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(c) STATE ENERGY CONSERVATION PLAN REQUIREMENT- 

(1) IN GENERAL- Section 362(c)(5) of the Energy Policy and Conservation Act (42 U.S.C. 6322

(c)(5)) is amended by striking `; and' and by inserting the following: `and to turn such vehicle left 

from a one-way street onto a one-way street at a red light after stopping; and'. 

(2) EFFECTIVE DATE- The amendment made by paragraph (1) shall take effect January 1, 1995. 

(d) STUDY REGARDING IMPACT OF PERMITTING RIGHT AND LEFT TURNS ON RED 

LIGHTS- 

(1) IN GENERAL- The Administrator of the National Highway Traffic Safety Administration, in 

consultation with State agencies with jurisdiction over traffic safety issues, shall conduct a study 

on the safety impact of the requirement specified in section 362(c)(5) of the Energy Policy and 

Conservation Act (42 U.S.C. 6322(c)(5)), particularly with respect to the impact on pedestrian 

safety. 

(2) REPORT- The Administrator shall report the findings of the study conducted under paragraph 

(1) to the Congress and the Secretary not later than 2 years after the date of the enactment of this 

Act. 

SEC. 142. AMENDMENTS TO LOW-INCOME WEATHERIZATION PROGRAM. 

(a) PRIVATE SECTOR INVESTMENTS IN LOW-INCOME WEATHERIZATION- Part A of title IV 

of the Energy Conservation and Production Act (42 U.S.C. 6861 et seq.) is amended by inserting after 

section 414 the following new sections: 

`SEC. 414A. PRIVATE SECTOR INVESTMENTS. 

`(a) IN GENERAL- The Secretary shall, to the extent funds are made available for such purpose, provide 

financial assistance to entities receiving funding from the Federal Government or from a State through a 

weatherization assistance program under section 413 or section 414 for the development and initial 

implementation of partnerships, agreements, or other arrangements with utilities, private sector interests, 

or other institutions, under which non-Federal financial assistance would be made available to support 

programs which install energy efficiency improvements in low-income housing. 

`(b) USE OF FUNDS- Financial assistance provided under this section may be used for-- 

`(1) the negotiation of such partnerships, agreements and other arrangements; 

`(2) the presentation of arguments before State or local agencies; 

`(3) expert advice on the development of such partnerships, agreements, and other arrangements; 

or 

`(4) other activities reasonably associated with the development and initial implementation of such 

arrangements. 

`(c) CONDITIONS- (1) Financial assistance provided under this section to entities other than States 

shall, to the extent practicable, coincide with the timing of financial assistance provided to such entities 

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under section 413 or section 414. 

`(2) Not less than 80 percent of amounts provided under this section shall be provided to entities other 

than States. 

`(3) A recipient of financial assistance under this section shall have up to three years to complete projects 

undertaken with such assistance. 

`SEC. 414B. TECHNICAL TRANSFER GRANTS. 

`(a) IN GENERAL- The Secretary may, to the extent funds are made available, provide financial 

assistance to entities receiving funding from the Federal Government or from a State through a 

weatherization assistance program under section 413 or section 414 for-- 

`(1) evaluating technical and management measures which increase program and/or private entity 

performance in weatherizing low-income housing; 

`(2) producing technical information for use by persons involved in weatherizing low-income 

housing; 

`(3) exchanging information; and 

`(4) conducting training programs for persons involved in weatherizing low-income housing. 

`(b) CONDITIONS- (1) Not less than 50 percent of amounts provided under this section shall be 

awarded to entities other than States. 

`(2) A recipient of financial assistance under this section may contract with nonprofit entities to carry out 

all or part of the activities for which such financial assistance is provided.'. 

(b) USE OF SOLAR THERMAL WATER HEATERS AND WOOD-BURNING HEATING 

APPLIANCES FOR LOW-INCOME WEATHERIZATION- Section 412(9) of the Energy Conservation 

and Production Act (42 U.S.C. 6862(9)) is amended-- 

(1) by moving subparagraph (G) 2-ems to the right and by striking `and'; 

(2) by redesignating subparagraph (H) as subparagraph (J); and 

(3) by inserting after subparagraph (G), the following: 

`(H) solar thermal water heaters; 

`(I) wood-heating appliances; and'. 

(c) CLERICAL AMENDMENT- The table of contents for part A of title IV of the Energy Conservation 

and Production Act is amended by inserting after the item related to section 414 the following items: 

`Sec. 414A. Private sector investments.

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`Sec. 414B. Technical transfer grants.'. 

SEC. 143. ENERGY EXTENSION SERVICE PROGRAM. 

(a) REPEAL- The National Energy Extension Service Act, title V of Public Law 95-39, is repealed. 

(b) CONFORMING AMENDMENT- Section 103 of the Energy Reorganization Act of 1974 (42 U.S.C. 

5813(7)) is amended-- 

(1) by striking paragraph (7); and 

(2) by redesignating paragraphs (8), (9), (10), (11), and (12) as paragraphs (7), (8), (9), (10), and 

(11), respectively. 

Subtitle F--Federal Agency Energy Management 

SEC. 151. DEFINITIONS. 

For purposes of this subtitle-- 

(1) the term `agency' means has the meaning given such term in section 551(1) of title 5, United 

States Code, except that such term does not include the United States Postal Service; 

(2) the term `facility energy supervisor' means the employee with responsibility for the daily 

operations of a Federal facility, including the management, installation, operation, and 

maintenance of energy systems in Federal facilities which may include more than one building; 

(3) the term `trained energy manager' means a person who has demonstrated proficiency, or who 

has completed a course of study in the areas of fundamentals of building energy systems, building 

energy codes and applicable professional standards, energy accounting and analysis, life-cycle cost 

methodology, fuel supply and pricing, and instrumentation for energy surveys and audits; 

(4) the term `Task Force' means the Interagency Energy Management Task Force established 

under section 547 of the National Energy Conservation Policy Act (42 U.S.C. 8257); and 

(5) the term `energy conservation measures' has the meaning given such term in section 551(4) of 

the National Energy Conservation Policy Act. 

SEC. 152. FEDERAL ENERGY MANAGEMENT AMENDMENTS. 

(a) PURPOSE- Section 542 of the National Energy Conservation Policy Act (42 U.S.C. 8252) is 

amended by inserting after `use of energy' the following: `and water, and the use of renewable energy 

sources,'. 

(b) REQUIREMENTS FOR FEDERAL AGENCIES- Section 543 of such Act (42 U.S.C. 8253(a)) is 

amended-- 

(1) in the section heading by striking `GOALS' and inserting `REQUIREMENTS'; 

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(2) in subsection (a) by striking `GOAL' and inserting `REQUIREMENT'; 

(3) in subsection (a)(1), by striking the period at the end and inserting the following: `and so that 

the energy consumption per gross square foot of its Federal buildings in use during the fiscal year 

2000 is at least 20 percent less than the energy consumption per gross square foot of its Federal 

buildings in use during fiscal year 1985.'; and 

(4) by redesignating subsection (b) as subsection (d) and inserting after subsection (a) the 

following: 

`(b) ENERGY MANAGEMENT REQUIREMENT FOR FEDERAL AGENCIES- (1) Not later than 

January 1, 2005, each agency shall, to the maximum extent practicable, install in Federal buildings 

owned by the United States all energy and water conservation measures with payback periods of less 

than 10 years, as determined by using the methods and procedures developed pursuant to section 544. 

`(2) The Secretary may waive the requirements of this subsection for any agency for such periods as the 

Secretary may determine if the Secretary finds that the agency is taking all practicable steps to meet the 

requirements and that the requirements of this subsection will pose an unacceptable burden upon the 

agency. If the Secretary waives the requirements of this subsection, the Secretary shall notify the 

Congress promptly in writing with an explanation and a justification of the reasons for such waiver. 

`(3) This subsection shall not apply to an agency's facilities that generate or transmit electric energy or to 

the uranium enrichment facilities operated by the Department of Energy. 

`(4) An agency may participate in the Environmental Protection Agency's `Green Lights' program for 

purposes of receiving technical assistance in complying with the requirements of this section. 

`(c) EXCLUSIONS- (1) An agency may exclude, from the energy consumption requirements for the 

year 2000 established under subsection (a) and the requirements of subsection (b)(1), any Federal 

building or collection of Federal buildings, and the associated energy consumption and gross square 

footage, if the head of such agency finds that compliance with such requirements would be impractical. 

A finding of impracticability shall be based on the energy intensiveness of activities carried out in such 

Federal buildings or collection of Federal buildings, the type and amount of energy consumed, the 

technical feasibility of making the desired changes, and, in the cases of the Departments of Defense and 

Energy, the unique character of certain facilities operated by such Departments. 

`(2) Each agency shall identify and list, in each report made under section 548(a), the Federal buildings 

designated by it for such exclusion. The Secretary shall review such findings for consistency with the 

impracticability standards set forth in paragraph (1), and may within 90 days after receipt of the findings, 

reverse a finding of impracticability. In the case of any such reversal, the agency shall comply with the 

energy consumption requirements for the building concerned.'. 

(c) IMPLEMENTATION- Section 543(d) of such Act (as redesignated by subsection (b)(4) of this 

section) is amended-- 

(1) in the material preceding paragraph (1), by striking out `To achieve the goal established in 

subsection (a),' and inserting in lieu thereof the following: `The Secretary shall consult with the 

Secretary of Defense and the Administrator of General Services in developing guidelines for the 

implementation of this part. To meet the requirements of this section,';

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(2) by striking out paragraph (1) and inserting in lieu thereof the following: 

`(1) prepare and submit to the Secretary, not later than December 31, 1993, a plan describing how 

the agency intends to meet such requirements, including how it will-- 

`(A) designate personnel primarily responsible for achieving such requirements; 

`(B) identify high priority projects through calculation of payback periods; 

`(C) take maximum advantage of contracts authorized under title VIII of this Act, of 

financial incentives and other services provided by utilities for efficiency investment, and of 

other forms of financing to reduce the direct costs to the Government; and 

`(D) otherwise implement this part;'; 

(3) in paragraph (2), by inserting before the semicolon at the end the following: `and update such 

surveys as needed, incorporating any relevant information obtained from the survey conducted 

pursuant to section 550'; 

(4) by striking out paragraph (3) and inserting in lieu thereof the following: 

`(3) using such surveys, determine the cost and payback period of energy and water conservation 

measures likely to achieve the requirements of this section; 

`(4) install energy and water conservation measures that will achieve the requirements of this 

section through the methods and procedures established pursuant to section 544; and'; and 

(5) by redesignating paragraph (4) as paragraph (5). 

(d) LIFE CYCLE COST METHODS AND PROCEDURES- Section 544 of such Act (42 U.S.C. 8254) 

is amended-- 

(1) in subsection (a), in the material preceding paragraph (1), by striking out `National Bureau of 

Standards,' and inserting in lieu thereof `National Institute of Standards and Technology,'; and 

(2) in subsection (b)(2), by striking `agency shall' and all that follows through the period at the end 

and inserting the following: `agency shall, after January 1, 1994, fully consider the efficiency of all 

potential building space at the time of renewing or entering into a new lease.'. 

(e) IDENTIFICATION OF FUNDS- Section 545 of such Act (42 U.S.C. 8255) is amended to read as 

follows: 

`SEC. 545. BUDGET TREATMENT FOR ENERGY CONSERVATION MEASURES. 

`The President shall transmit to the Congress, along with each budget that is submitted to the Congress 

under section 1105 of title 31, United States Code, a statement of the amount of appropriations requested 

in such budget, if any, on an individual agency basis, for-- 

`(1) electric and other energy costs to be incurred in operating and maintaining agency facilities; 

and

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`(2) compliance with the provisions of this part, the Energy Policy and Conservation Act (42 

U.S.C. 6201 et seq.), and all applicable Executive orders, including Executive Order 12003 (42 

U.S.C. 6201 note) and Executive Order 12759 (56 Fed. Reg. 16257).'. 

(f) INCENTIVE PROGRAM- Section 546 of such Act (42 U.S.C. 8256) is amended-- 

(1) by striking `(a) IN GENERAL- ' and inserting in lieu thereof `(a) CONTRACTS- (1)'; 

(2) by redesignating subsection (b) as paragraph (2) and amending it to read as follows: 

`(2) The Secretary shall, not later than 18 months after the date of the enactment of the Energy Policy 

Act of 1992 and after consultation with the Director of the Office of Management and Budget, the 

Secretary of Defense, and the Administrator of General Services, develop appropriate procedures and 

methods for use by agencies to implement the incentives referred to in paragraph (1).'; 

(3) by striking out subsection (c); and 

(4) by adding at the end the following new subsections: 

`(b) FEDERAL ENERGY EFFICIENCY FUND- (1) The Secretary shall establish a Federal Energy 

Efficiency Fund to provide grants to agencies to assist them in meeting the requirements of section 543. 

`(2) Not later than June 30, 1993, the Secretary shall issue guidelines to be followed by agencies 

submitting proposals for such grants. All agencies shall be eligible to submit proposals for grants under 

the Fund. 

`(3) The Secretary shall award grants from the Fund after a competitive assessment of the technical and 

economic effectiveness of each agency proposal. The Secretary shall consider the following factors in 

determining whether to provide funding under this subsection: 

`(A) The cost-effectiveness of the project. 

`(B) The amount of energy and cost savings anticipated to the Federal Government. 

`(C) The amount of funding committed to the project by the agency requesting financial 

assistance. 

`(D) The extent that a proposal leverages financing from other non-Federal sources. 

`(E) Any other factor which the Secretary determines will result in the greatest amount of energy 

and cost savings to the Federal Government. 

`(4) There are authorized to be appropriated, to remain available to be expended, to carry out this 

subsection not more than $10,000,000 for fiscal year 1994, $50,000,000 for fiscal year 1995, and such 

sums as may be necessary for fiscal years thereafter. 

`(c) UTILITY INCENTIVE PROGRAMS- (1) Agencies are authorized and encouraged to participate in 

programs to increase energy efficiency and for water conservation or the management of electricity 

demand conducted by gas, water, or electric utilities and generally available to customers of such 

utilities. 

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`(2) Each agency may accept any financial incentive, goods, or services generally available from any 

such utility, to increase energy efficiency or to conserve water or manage electricity demand. 

`(3) Each agency is encouraged to enter into negotiations with electric, water, and gas utilities to design 

cost-effective demand management and conservation incentive programs to address the unique needs of 

facilities utilized by such agency. 

`(4) If an agency satisfies the criteria which generally apply to other customers of a utility incentive 

program, such agency may not be denied collection of rebates or other incentives. 

`(5)(A) An amount equal to fifty percent of the energy and water cost savings realized by an agency 

(other than the Department of Defense) with respect to funds appropriated for any fiscal year beginning 

after fiscal year 1992 (including financial benefits resulting from energy savings performance contracts 

under title VIII and utility energy efficiency rebates) shall, subject to appropriation, remain available for 

expenditure by such agency for additional energy efficiency measures which may include related 

employee incentive programs, particularly at those facilities at which energy savings were achieved. 

(B) Agencies shall establish a fund and maintain strict financial accounting and controls for savings 

realized and expenditures made under this subsection. Records maintained pursuant to this subparagraph 

shall be made available for public inspection upon request. 

`(d) FINANCIAL INCENTIVE PROGRAM FOR FACILITY ENERGY MANAGERS- (1) The 

Secretary shall, in consultation with the Task Force established pursuant to section 547, establish a 

financial bonus program to reward, with funds made available for such purpose, outstanding Federal 

facility energy managers in agencies and the United States Postal Service. 

`(2) Not later than June 1, 1993, the Secretary shall issue procedures for implementing and conducting 

the award program, including the criteria to be used in selecting outstanding energy managers and 

contributors who have-- 

`(A) improved energy performance through increased energy efficiency; 

`(B) implemented proven energy efficiency and energy conservation techniques, devices, 

equipment, or procedures; 

`(C) developed and implemented training programs for facility energy managers, operators, and 

maintenance personnel; 

`(D) developed and implemented employee awareness programs; 

`(E) succeeded in generating utility incentives, shared energy savings contracts, and other federally 

approved performance based energy savings contracts; 

`(F) made successful efforts to fulfill compliance with energy reduction mandates, including the 

provisions of section 543; and 

`(G) succeeded in the implementation of the guidelines established under section 159. 

`(3) There is authorized to be appropriated to carry out this subsection not more than $250,000 for each 

of the fiscal years 1993, 1994, and 1995.

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(g) REPORTS- Section 548 of such Act (42 U.S.C. 8258) is amended-- 

(1) in subsection (b)(1), by striking `including' and all that follows through the semicolon and 

inserting the following: `including-- 

`(A) a copy of the list of the exclusions made under sections 543(a)(2) and 543(c)(3); and 

`(B) a statement detailing the amount of funds awarded to each agency under section 546(b), 

the energy and water conservation measures installed with such funds, the projected energy 

and water savings to be realized from installed measures, and, for each installed measure for 

which the projected energy and water savings reported in the previous year were not 

realized, the percentage of such projected savings that was not realized, the reasons such 

savings were not realized, and proposals for, and projected costs of, achieving such 

projected savings in the future;'; and 

(2) by adding at the end the following new subsection: 

`(c) OTHER REPORT- The Secretary, in consultation with the Administrator of General Services, shall-

- 

`(1) conduct a study and evaluate legal, institutional, and other constraints to connecting buildings 

owned or leased by the Federal Government to district heating and district cooling systems; and 

`(2) not later than 18 months after the date of the enactment of this subsection, transmit to the 

Congress a report containing the findings and conclusions of such study, including 

recommendations for the development of streamlined processes for the consideration of 

connecting buildings owned or leased by the Federal Government to district heating and cooling 

systems.'. 

(h) DEMONSTRATION OF NEW TECHNOLOGY; SURVEY OF ENERGY SAVING POTENTIALSuch Act is amended-- 

(1) by redesignating section 549 as section 551; and 

(2) by inserting the following new sections after section 548: 

`SEC. 549. DEMONSTRATION OF NEW TECHNOLOGY. 

`(a) DEMONSTRATION PROGRAM- Not later than January 1, 1994, the Secretary, in cooperation 

with the Administrator of General Services, shall establish a demonstration program to install, in 

federally owned facilities or federally assisted housing, energy conservation measures for which the 

Secretary has determined that such installation would accelerate commercial viability. In those cases 

where technologies are determined to be equivalent, priority shall be given to those technologies that 

have received or are receiving Federal financial assistance. 

`(b) SELECTION CRITERIA- In addition to the determination under subsection (a), the Secretary shall 

select, in cooperation with the Administrator of General Services, proposals to be funded under this 

section on the basis of-- 

`(1) cost-effectiveness; 

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`(2) technical feasibility and system reliability in a working environment; 

`(3) lack of market penetration in the Federal sector; 

`(4) the potential needs of the proposing Federal agency for the technology, projected over 5 to 10 

years; 

`(5) the potential Federal sector market, projected over 5 to 10 years; 

`(6) energy efficiency; and 

`(7) other environmental benefits, including the projected reduction of greenhouse gas emissions 

and indoor air pollution. 

`(c) PROPOSALS- Federal agencies may submit to the Secretary, for each fiscal year, proposals for 

projects to be funded by the Secretary under this section. Each such proposal shall include-- 

`(1) a description of the proposed project emphasizing the innovative use of technology in the 

Federal sector; 

`(2) a description of the technical reliability and cost-effectiveness data expected to be acquired; 

`(3) an identification of the potential needs of the Federal agency for the technology; 

`(4) a commitment to adopt the technology, if the project establishes its technical reliability and 

life cycle cost-effectiveness, to supply at least 10 percent of the Federal agency's potential needs 

identified under paragraph (3); 

`(5) schedules and milestones for installing additional units; and 

`(6) a technology transfer plan to publicize the results of the project. 

`(d) PARTICIPATION BY GSA- The Secretary may only select a project for funding under this section 

which is proposed to be carried out in a building under the jurisdiction of the General Services 

Administration if the project will be carried out by the Administrator of General Services. If such project 

involves a total expenditure in excess of $1,600,000, no appropriation shall be made for such project 

unless such project has been approved by a resolution adopted by the Committee on Public Works and 

Transportation of the House of Representatives and the Committee on Environment and Public Works of 

the Senate. 

`(e) STUDY- The Secretary shall conduct a study to evaluate the potential use of the purchasing power 

of the Federal Government to promote the development and commercialization of energy efficient 

products. The study shall identify products for which there is a high potential for Federal purchasing 

power to substantially promote their development and commercialization, and shall include a plan to 

develop such potential. The study shall be conducted in consultation with utilities, manufacturers, and 

appropriate nonprofit organizations concerned with energy efficiency. The Secretary shall report to the 

Congress on the results of the study not later than two years after the date of the enactment of this Act. 

`(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $5,000,000 for each of the fiscal years 1993, 1994, and 1995.

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`SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL. 

`(a) IN GENERAL- The Secretary shall, in consultation with the Interagency Energy Management Task 

Force established under section 547, carry out an energy survey for the purposes of-- 

`(1) determining the maximum potential cost effective energy savings that may be achieved in a 

representative sample of buildings owned or leased by the Federal Government in different areas 

of the country; 

`(2) making recommendations for cost effective energy efficiency and renewable energy 

improvements in those buildings and in other similar Federal buildings; and 

`(3) identifying barriers which may prevent an agency's ability to comply with section 543 and 

other energy management goals. 

`(b) IMPLEMENTATION- (1) The Secretary shall transmit to the Committee on Energy and Natural 

Resources and the Committee on Governmental Affairs of the Senate and the Committee on Energy and 

Commerce, the Committee on Government Operations, and the Committee on Public Works and 

Transportation of the House of Representatives, within 180 days after the date of the enactment of the 

Energy Policy Act of 1992, a plan for implementing this section. 

`(2) The Secretary shall designate buildings to be surveyed in the project so as to obtain a sample of the 

buildings of the types and in the climates that is representative of buildings owned or leased by Federal 

agencies in the United States that consume the major portion of the energy consumed in Federal 

buildings. Such sample shall include, where appropriate, the following types of Federal facility space: 

`(A) Housing. 

`(B) Storage. 

`(C) Office. 

`(D) Services. 

`(E) Schools. 

`(F) Research and Development. 

`(G) Industrial. 

`(H) Prisons. 

`(I) Hospitals. 

`(3) For purposes of this section, an improvement shall be considered cost effective if the cost of the 

energy saved or displaced by the improvement exceeds the cost of the improvement over the remaining 

life of a Federal building or the remaining term of a lease of a building leased by the Federal 

Government as determined by the life cycle costing methodology developed under section 544. 

`(c) PERSONNEL- (1) In carrying out this section, the Secretary shall utilize personnel who are--

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`(A) employees of the Department of Energy; or 

`(B) selected by the agencies utilizing the buildings which are being surveyed under this section. 

`(2) Such personnel shall be detailed for the purpose of carrying out this section without any reduction of 

salary or benefits. 

`(d) REPORT- As soon as practicable after the completion of the project carried out under this section, 

the Secretary shall transmit a report of the findings and conclusions of the project to the Committee on 

Energy and Natural Resources and the Committee on Governmental Affairs of the Senate, the 

Committee on Energy and Commerce, the Committee on Government Operations, and the Committee on 

Public Works and Transportation of the House of Representatives, and the agencies who own the 

buildings involved in such project. Such report shall include an analysis of the probability of each 

agency achieving the 20 percent reduction goal established under section 543(a) of the National Energy 

Conservation Policy Act (42 U.S.C. 8253(a)).'. 

(i) TECHNICAL AMENDMENTS- (1) Section 548 of such Act (42 U.S.C. 8258) is amended-- 

(A) in subsection (a)(2), by striking `546(b)' and inserting in lieu thereof `546(a)(2)'; and 

(B) in subsection (b), in the material preceding paragraph (1), by striking `annually,' and insert the 

following: `, not later than April 2 of each year,'. 

(2) The table of contents of such Act is amended by striking the item for section 549 and inserting in lieu 

thereof the following new items: 

`Sec. 549. Demonstration of new technology. 

`Sec. 550. Survey of energy saving potential. 

`Sec. 551. Definitions.'. 

(3) Section 3 of the Federal Energy Management Improvement Act of 1988 (42 U.S.C. 8253 note) is 

hereby repealed. 

SEC. 153. GENERAL SERVICES ADMINISTRATION FEDERAL BUILDINGS FUND. 

Section 210(f) of the Federal Property and Administrative Services Act of 1949 (40 U.S.C. 490(f)), is 

amended-- 

(1) in paragraph (1), by inserting `(to be known as the Federal Buildings Fund)' after `a fund'; and 

(2) by adding at the end the following new paragraphs: 

`(7)(A) The Administrator is authorized to receive amounts from rebates or other cash incentives related 

to energy savings and shall deposit such amounts in the Federal Buildings Fund for use as provided in 

subparagraph (D). 

`(B) The Administrator may accept, from a utility, goods or services which enhance the energy 

efficiency of Federal facilities. 

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`(C) In the administration of any real property for which the Administrator leases and pays utility costs, 

the Administrator may assign all or a portion of energy rebates to the lessor to underwrite the costs 

incurred in undertaking energy efficiency improvements in such real property if the payback period for 

such improvement is at least 2 years less than the remainder of the term of the lease. 

`(D) The Administrator may, in addition to amounts appropriated for such purposes and without regard 

to paragraph (2), obligate for energy management improvement programs-- 

`(i) amounts received and deposited in the Federal Buildings Fund under subparagraph (A); 

`(ii) goods and services received under subparagraph (B); and 

`(iii) amounts the Administrator determines are not needed for other authorized projects and are 

otherwise available to implement energy efficiency programs. 

`(8)(A) The Administrator is authorized to receive amounts from the sale of recycled materials and shall 

deposit such amounts in the Federal Buildings Fund for use as provided in subparagraph (B). 

`(B) The Administrator may, in addition to amounts appropriated for such purposes and without regard 

to paragraph (2), obligate amounts received and deposited in the Federal Buildings Fund under 

subparagraph (A) for programs which-- 

`(i) promote further source reduction and recycling programs; and 

`(ii) encourage employees to participate in recycling programs by providing funding for child 

care.'. 

SEC. 154. REPORT BY GENERAL SERVICES ADMINISTRATION. 

Not later than one year after the date of the enactment of this Act, and annually thereafter, the 

Administrator of General Services shall report to the Committee on Governmental Affairs and the 

Committee on Energy and Natural Resources of the Senate and the Committee on Energy and 

Commerce, the Committee on Government Operations, and the Committee on Public Works and 

Transportation of the House of Representatives on the activities of the General Services Administration 

conducted pursuant to this subtitle. 

SEC. 155. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

(a) IN GENERAL- Section 801 of the National Energy Conservation Policy Act (42 U.S.C. 8287) is 

amended-- 

(1) by striking `The head' and inserting the following: 

`(a) IN GENERAL- (1) The head'; and 

(2) by inserting at the end the following: 

`(2)(A) Contracts under this title shall be energy savings performance contracts and shall require an 

annual energy audit and specify the terms and conditions of any Government payments and performance 

guarantees. Any such performance guarantee shall provide that the contractor is responsible for 

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maintenance and repair services for any energy related equipment, including computer software systems.

`(B) Aggregate annual payments by an agency to both utilities and energy savings performance 

contractors, under an energy savings performance contract, may not exceed the amount that the agency 

would have paid for utilities without an energy savings performance contract (as estimated through the 

procedures developed pursuant to this section) during contract years. The contract shall provide for a 

guarantee of savings to the agency, and shall establish payment schedules reflecting such guarantee, 

taking into account any capital costs under the contract. 

`(C) Federal agencies may incur obligations pursuant to such contracts to finance energy conservation 

measures provided guaranteed savings exceed the debt service requirements. 

`(D) A Federal agency may enter into a multiyear contract under this title for a period not to exceed 25 

years, without funding of cancellation charges before cancellation, if-- 

`(i) such contract was awarded in a competitive manner pursuant to subsection (b)(2), using 

procedures and methods established under this title; 

`(ii) funds are available and adequate for payment of the costs of such contract for the first fiscal 

year; 

`(iii) 30 days before the award of any such contract that contains a clause setting forth a 

cancellation ceiling in excess of $750,000, the head of such agency gives written notification of 

such proposed contract and of the proposed cancellation ceiling for such contract to the 

appropriate authorizing and appropriating committees of the Congress; and 

`(iv) such contract is governed by part 17.1 of the Federal Acquisition Regulation promulgated 

under section 25 of the Office of Federal Procurement Policy Act (41 U.S.C. 421) or the 

applicable rules promulgated under this title. 

`(b) IMPLEMENTATION- (1)(A) The Secretary, with the concurrence of the Federal Acquisition 

Regulatory Council established under section 25(a) of the Office of Federal Procurement Policy Act, not 

later than 180 days after the date of the enactment of the Energy Policy Act of 1992, shall, by rule, 

establish appropriate procedures and methods for use by Federal agencies to select, monitor, and 

terminate contracts with energy service contractors in accordance with laws governing Federal 

procurement that will achieve the intent of this section in a cost-effective manner. In developing such 

procedures and methods, the Secretary, with the concurrence of the Federal Acquisition Regulatory 

Council, shall determine which existing regulations are inconsistent with the intent of this section and 

shall formulate substitute regulations consistent with laws governing Federal procurement. 

`(B) The procedures and methods established pursuant to subparagraph (A) shall be the procedures and 

contracting methods for selection, by an agency, of a contractor to provide energy savings performance 

services. Such procedures and methods shall provide for the calculation of energy savings based on 

sound engineering and financial practices. 

`(2) The procedures and methods established pursuant to paragraph (1)(A) shall-- 

`(A) allow the Secretary to-- 

`(i) request statements of qualifications, which shall, at a minimum, include prior experience 

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and capabilities of contractors to perform the proposed types of energy savings services and 

financial and performance information, from firms engaged in providing energy savings 

services; and 

`(ii) from the statements received, designate and prepare a list, with an update at least 

annually, of those firms that are qualified to provide energy savings services; 

`(B) require each agency to use the list prepared by the Secretary pursuant to subparagraph (A)(ii) 

unless the agency elects to develop an agency list of firms qualified to provide energy savings 

performance services using the same selection procedures and methods as are required of the 

Secretary in preparing such lists; and 

`(C) allow the head of each agency to-- 

`(i) select firms from the list prepared pursuant to subparagraph (A)(ii) or the list prepared 

by the agency pursuant to subparagraph (B) to conduct discussions concerning a particular 

proposed energy savings project, including requesting a technical and price proposal from 

such selected firms for such project; 

`(ii) select from such firms the most qualified firm to provide energy savings services based 

on technical and price proposals and any other relevant information; 

`(iii) permit receipt of unsolicited proposals for energy savings performance contracting 

services from a firm that such agency has determined is qualified to provide such services 

under the procedures established pursuant to paragraph (1)(A), and require agency facility 

managers to place a notice in the Commerce Business Daily announcing they have received 

such a proposal and invite other similarly qualified firms to submit competing proposals; 

and 

`(iv) enter into an energy savings performance contract with a firm qualified under clause 

(iii), consistent with the procedures and methods established pursuant to paragraph (1)(A). 

`(3) A firm not designated as qualified to provide energy savings services under paragraph (2)(A)(i) or 

paragraph (2)(B) may request a review of such decision to be conducted in accordance with procedures 

to be developed by the board of contract appeals of the General Services Administration. Procedures 

developed by the board of contract appeals under this paragraph shall be substantially equivalent to 

procedures established under section 111(f) of the Federal Property and Administrative Services Act of 

1949 (40 U.S.C. 759(f)). 

`(c) SUNSET AND REPORTING REQUIREMENTS- (1) The authority to enter into new contracts 

under this section shall cease to be effective five years after the date procedures and methods are 

established under subsection (b). 

`(2) Beginning one year after the date procedures and methods are established under subsection (b), and 

annually thereafter, for a period of five years after such date, the Comptroller General of the United 

States shall report on the implementation of this section. Such reports shall include, but not be limited to, 

an assessment of the following issues: 

`(A) The quality of the energy audits conducted for the agencies.

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`(B) The Government's ability to maximize energy savings. 

`(C) The total energy cost savings accrued by the agencies that have entered into such contracts. 

`(D) The total costs associated with entering into and performing such contracts. 

`(E) A comparison of the total costs incurred by agencies under such contracts and the total costs 

incurred under similar contracts performed in the private sector. 

`(F) The number of firms selected as qualified firms under this section and their respective shares 

of awarded contracts. 

`(G) The number of firms engaged in similar activity in the private sector and their respective 

market shares. 

`(H) The number of applicant firms not selected as qualified firms under this section and the 

reason for their nonselection. 

`(I) The frequency with which agencies have utilized the services of Government labs to perform 

any of the functions specified in this section. 

`(J) With the respect to the final report submitted pursuant to this paragraph, an assessment of 

whether the contracting procedures developed pursuant to this section and utilized by agencies 

have been effective and whether continued use of such procedures, as opposed to the procedures 

provided by existing public contract law, is necessary for implementation of successful energy 

savings performance contracts.'. 

(b) DEFINITION- Section 804 of such Act (42 U.S.C. 8287c) is amended-- 

(1) in the material preceding paragraph (1), by striking `title--' and inserting `title, the following 

definitions apply:'; 

(2) in paragraph (1), by striking `the' and inserting `The' and by striking `, and' and inserting a 

period; 

(3) in paragraph (2), by striking `the term' and inserting `The term'; and 

(4) by adding at the end the following: 

`(3) The terms `energy savings contract' and `energy savings performance contract' mean a 

contract which provides for the performance of services for the design, acquisition, installation, 

testing, operation, and, where appropriate, maintenance and repair, of an identified energy 

conservation measure or series of measures at one or more locations. Such contracts-- 

`(A) may provide for appropriate software licensing agreements; and 

`(B) shall, with respect to an agency facility that is a public building as such term is defined 

in section 13(1) of the Public Buildings Act of 1959 (40 U.S.C. 612(1)), be in compliance 

with the prospectus requirements and procedures of section 7 of the Public Buildings Act of 

1959 (40 U.S.C. 606). 

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`(4) The term `energy conservation measures' has the meaning given such term in section 551(4).'. 

(c) TECHNICAL AND CONFORMING AMENDMENTS- (1) The title heading for title VIII of such 

Act is amended to read as follows: 

`TITLE VIII--ENERGY SAVINGS PERFORMANCE CONTRACTS'. 

(2) The table of contents of such Act is amended by striking the item relating to title VIII and inserting 

the following: `ENERGY SAVINGS PERFORMANCE CONTRACTS'. 

SEC. 156. INTERGOVERNMENTAL ENERGY MANAGEMENT PLANNING AND 

COORDINATION. 

(a) CONFERENCE WORKSHOPS- The Administrator of General Services, in consultation with the 

Secretary and the Task Force, shall hold regular, biennial conference workshops in each of the 10 

standard Federal regions on energy management, conservation, efficiency, and planning strategy. The 

Administrator shall work and consult with the Department of Energy and other Federal agencies to plan 

for particular regional conferences. The Administrator shall invite Department of Energy, State, local, 

tribal, and county public officials who have responsibilities for energy management or may have an 

interest in such conferences and shall seek the input of, and be responsive to, the views of such officials 

in the planning and organization of such workshops. 

(b) FOCUS OF WORKSHOPS- Such workshops and conferences shall focus on the following (but may 

include other topics): 

(1) Developing strategies among Federal, State, tribal, and local governments to coordinate energy 

management policies and to maximize available intergovernmental energy management resources 

within the region regarding the use of governmental facilities and buildings. 

(2) The design, construction, maintenance, and retrofitting of governmental facilities to 

incorporate energy efficient techniques. 

(3) Procurement and use of energy efficient products. 

(4) Dissemination of energy information on innovative programs, technologies, and methods 

which have proven successful in government. 

(5) Technical assistance to design and incorporate effective energy management strategies. 

(c) ESTABLISHMENT OF WORKSHOP TIMETABLE- As a part of the first report to be submitted 

pursuant to section 154, the Administrator shall set forth the schedule for the regional energy 

management workshops to be conducted under this section. Not less than five such workshops shall be 

held by September 30, 1993, and at least one such workshop shall be held in each of the 10 Federal 

regions every two years beginning on September 30, 1993. 

SEC. 157. FEDERAL AGENCY ENERGY MANAGEMENT TRAINING. 

(a) ENERGY MANAGEMENT TRAINING- (1) Each executive department described under section 

101 of title 5, United States Code, the Environmental Protection Agency, the National Aeronautics and 

Space Administration, the General Services Administration, and the United States Postal Service shall 

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establish and maintain a program to ensure that facility energy managers are trained energy managers. 

Such programs shall be managed-- 

(A) by the department or agency representative on the Task Force; or 

(B) if a department or agency is not represented on the Task Force, by the designee of the head of 

such department or agency. 

(2) Departments and agencies described in paragraph (1) shall encourage appropriate employees to 

participate in energy manager training courses. Employees may enroll in courses of study in the areas 

described in section 151(3) including, but not limited to, courses offered by-- 

(A) private or public educational institutions; 

(B) Federal agencies; or 

(C) professional associations. 

(b) REPORT TO TASK FORCE- (1) Each department and agency described in subsection (a)(1) shall, 

not later than 60 days following the date of the enactment of this Act, report to the Task Force the 

following information: 

(A) Those individuals employed by such department or agency on the date of the enactment of this 

Act who qualify as trained energy managers. 

(B) The General Schedule (GS) or grade level at which each of the individuals described in 

subparagraph (A) is employed. 

(C) The facility or facilities for which such individuals are responsible or otherwise stationed. 

(2) The Secretary shall provide a summary of the reports described in paragraph (1) to the Congress as 

part of the first report submitted under section 548 of the National Energy Conservation Policy Act (42 

U.S.C. 8258) after the date of the enactment of this Act. 

(c) REQUIREMENTS AT FEDERAL FACILITIES- (1) Not later than one year after the date of the 

enactment of this Act, the departments and agencies described under subsection (a)(1) shall upgrade their 

energy management capabilities by-- 

(A) designating facility energy supervisors; 

(B) encouraging facility energy supervisors to become trained energy managers; and 

(C) increasing the overall number of trained energy managers within such department or agency to 

a sufficient level to ensure effective implementation of this Act. 

(2) Departments and agencies described in subsection (a)(1) may hire trained energy managers to be 

facility energy supervisors. Trained energy managers, including those who are facility supervisors as 

well as other trained personnel, shall focus their efforts on improving energy efficiency in the following 

facilities-- 

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(A) department or agency facilities identified as most costly to operate or most energy inefficient; 

or 

(B) other facilities identified by the department or agency head as having significant energy 

savings potential. 

(d) ANNUAL REPORT TO SECRETARY AND CONGRESS- Each department and agency listed in 

subsection (a)(1) shall report to the Secretary on the status and implementation of the requirements of 

this section. The Secretary shall include a summary of each such report in the annual report to Congress 

as required under section 548(b) of the National Energy Conservation Policy Act (42 U.S.C. 8258). 

SEC. 158. ENERGY AUDIT TEAMS. 

(a) ESTABLISHMENT- The Secretary shall assemble from existing personnel with appropriate 

expertise, and with particular utilization of the national laboratories, and make available to all Federal 

agencies, one or more energy audit teams which shall be equipped with instruments and other advanced 

equipment needed to perform energy audits of Federal facilities. 

(b) MONITORING PROGRAMS- The Secretary shall also assist in establishing, at each site that has 

utilized an energy audit team, a program for monitoring the implementation of energy efficiency 

improvements based upon energy audit team recommendations, and for recording the operating history 

of such improvements. 

SEC. 159. FEDERAL ENERGY COST ACCOUNTING AND MANAGEMENT. 

(a) GUIDELINES- Not later than 120 days after the date of the enactment of this Act, the Director of the 

Office of Management and Budget, in cooperation with the Secretary, the Administrator of General 

Services, and the Secretary of Defense, shall establish guidelines to be employed by each Federal agency 

to assess accurate energy consumption for all buildings or facilities which the agency owns, operates, 

manages or leases, where the Government pays utilities separate from the lease and the Government 

operates the leased space. Such guidelines are to be used in reports required under section 548 of the 

National Energy Conservation Policy Act (42 U.S.C. 8258). Each agency shall implement such 

guidelines no later than 120 days after their establishment. Each facility energy manager shall maintain 

energy consumption and energy cost records for review by the Inspector General, the Congress, and the 

general public. 

(b) CONTENTS OF GUIDELINES- Such guidelines shall include the establishment of a monitoring 

system to determine-- 

(1) which facilities are the most costly to operate when measured on an energy consumption per 

square foot basis or other relevant analytical basis; 

(2) unusual or abnormal changes in energy consumption; and 

(3) the accuracy of utility charges for electric and gas consumption. 

(c) FEDERALLY LEASED SPACE ENERGY REPORTING REQUIREMENT- The Administrator of 

General Services shall include, in each report submitted under section 154, the estimated energy cost of 

leased buildings or space in which the Federal Government does not directly pay the utility bills.

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SEC. 160. INSPECTOR GENERAL REVIEW AND AGENCY ACCOUNTABILITY. 

(a) AUDIT SURVEY- Not later than 120 days after the date of the enactment of this Act, each Inspector 

General created to conduct and supervise audits and investigations relating to the programs and 

operations of the establishments listed in section 11(2) of the Inspector General Act of 1978 (5 U.S.C. 

App.), and the Chief Postal Inspector of the United States Postal Service, in accordance with section 8E

(f)(1) as established by section 8E(a)(2) of the Inspector General Act Amendments of 1988 (Public Law 

100-504) shall-- 

(1) identify agency compliance activities to meet the requirements of section 543 of the National 

Energy Conservation Policy Act (42 U.S.C. 8253) and any other matters relevant to implementing 

the goals of such Act; and 

(2) determine if the agency has the internal accounting mechanisms necessary to assess the 

accuracy and reliability of energy consumption and energy cost figures required under such 

section. 

(b) PRESIDENTS COUNCIL ON INTEGRITY AND EFFICIENCY REPORT TO CONGRESS- Not 

later than 150 days after the date of the enactment of this Act, the President's Council on Integrity and 

Efficiency shall submit a report to the Committee on Energy and Natural Resources and the Committee 

on Governmental Affairs of the Senate, the Committee on Energy and Commerce, the Committee on 

Government Operations, and the Committee on Public Works and Transportation of the House of 

Representatives, on the review conducted by the Inspector General of each agency under this section. 

(c) INSPECTOR GENERAL REVIEW- Each Inspector General established under section 2 of the 

Inspector General Act of 1978 (5 U.S.C. App.) is encouraged to conduct periodic reviews of agency 

compliance with part 3 of title V of the National Energy Conservation Policy Act, the provisions of this 

subtitle, and other laws relating to energy consumption. Such reviews shall not be inconsistent with the 

performance of the required duties of the Inspector General's office. 

SEC. 161. PROCUREMENT AND IDENTIFICATION OF ENERGY EFFICIENT PRODUCTS. 

(a) PROCUREMENT- The Administrator of General Services, the Secretary of Defense, and the 

Director of the Defense Logistics Agency, each shall undertake a program to include energy efficient 

products in carrying out their procurement and supply functions. 

(b) IDENTIFICATION PROGRAM- The Administrator of General Services, the Secretary of Defense, 

and the Director of the Defense Logistics Agency, in consultation with the Secretary of Energy, each 

shall implement, in conjunction with carrying out their procurement and supply functions, a program to 

identify and designate those energy efficient products that offer significant potential savings, using, to 

the extent practicable, the life cycle cost methods and procedures developed under section 544 of the 

National Energy Conservation Policy Act (42 U.S.C. 8254). The Secretary of Energy shall, to the extent 

necessary to carry out this section and after consultation with the aforementioned agency heads, provide 

estimates of the degree of relative energy efficiency of products. 

(c) GUIDELINES- The Administrator for Federal Procurement Policy, in consultation with the 

Administrator of General Services, the Secretary of Energy, the Secretary of Defense, and the Director of

the Defense Logistics Agency, shall issue guidelines to encourage the acquisition and use by all Federal 

agencies of products identified pursuant to this section. The Secretary of Defense and the Director of the 

Defense Logistics Agency shall consider, and place emphasis on, the acquisition of such products as part 

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of the Agency's ongoing review of military specifications. 

(d) REPORT TO CONGRESS- Not later than December 31 of 1993 and of each year thereafter, the 

Secretary of Energy, in consultation with the Administrator for Federal Procurement Policy, the 

Administrator of General Services, the Secretary of Defense, and the Director of the Defense Logistics 

Agency, shall report on the progress, status, activities, and results of the programs under subsections (a), 

(b), and (c). The report shall include-- 

(1) the types and functions of each product identified under subsection (b), and efforts undertaken 

by the Administrator of General Services, the Secretary of Defense, and the Director of the 

Defense Logistics Agency to encourage the acquisition and use of such products; 

(2) the actions taken by the Administrator of General Services, the Secretary of Defense, and the 

Director of the Defense Logistics Agency to identify products under subsection (b), the barriers 

which inhibit implementation of identification of such products, and recommendations for 

legislative action, if necessary; 

(3) progress on the development and issuance of guidelines under subsection (c); 

(4) an indication of whether energy cost savings technologies identified by the Advanced Building 

Technology Council, under section 809(h) of the National Housing Act (12 U.S.C. 1701j-2), have 

been used in the identification of products under subsection (b); 

(5) an estimate of the potential cost savings to the Federal Government from acquiring products 

identified under subsection (b) with respect to which energy is a significant component of life 

cycle cost, based on the quantities of such products that could be utilized throughout the 

Government; and 

(6) the actual quantities acquired of products described in paragraph (5). 

SEC. 162. FEDERAL ENERGY EFFICIENCY FUNDING STUDY. 

(a) STUDY- The Secretary shall, in consultation with the Secretary of the Treasury, the Director of the 

Office of Management and Budget, the Administrator of General Services, and such other individuals 

and organizations as the Secretary deems appropriate, conduct a detailed study of options for the 

financing of energy and water conservation measures required under part 3 of title V of the National 

Energy Conservation Policy Act (42 U.S.C. 8251 et seq.) and all applicable Executive orders. Such study 

shall, taking into account the unique characteristics of Federal agencies, consider and analyze-- 

(1) the Federal financial investment necessary to comply with such requirements; 

(2) the use of revolving funds and other funding mechanisms which offer stable, long-term 

financing of energy and water conservation measures; and 

(3) the means for capitalizing such funds. 

(b) REPORT TO CONGRESS- Not later than 180 days after the date of the enactment of this Act, the 

Secretary shall submit to the Congress a report containing the results of the study required under 

subsection (a). 

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SEC. 163. UNITED STATES POSTAL SERVICE ENERGY REGULATIONS. 

(a) IN GENERAL- The Postmaster General shall issue regulations to ensure the reliable and accurate 

accounting of energy consumption costs for all buildings or facilities which it owns, leases, operates, or 

manages. Such regulations shall-- 

(1) establish a monitoring system to determine which facilities are the most costly to operate on an 

energy consumption per square foot basis or other relevant analytical basis; 

(2) identify unusual or abnormal changes in energy consumption; and 

(3) check the accuracy of utility charges for electricity and gas consumption. 

(b) IDENTIFICATION OF ENERGY EFFICIENCY PRODUCTS- The Postmaster General shall 

actively undertake a program to identify and procure energy efficiency products for use in its facilities. 

In carrying out this subsection, the Postmaster General shall, to the maximum extent practicable, 

incorporate energy efficient information available on Federal Supply Schedules maintained by the 

General Services Administration and the Defense Logistics Agency. 

SEC. 164. UNITED STATES POSTAL SERVICE BUILDING ENERGY SURVEY AND REPORT. 

(a) IN GENERAL- The Postmaster General shall conduct an energy survey, as defined in section 551(5) 

of the National Energy Conservation Policy Act, for the purposes of-- 

(1) determining the maximum potential cost effective energy savings that may be achieved in a 

representative sample of buildings owned or leased by the United States Postal Service in different 

areas of the country; 

(2) making recommendations for cost effective energy efficiency and renewable energy 

improvements in those buildings and in other similar United States Postal Service buildings; and 

(3) identifying barriers which may prevent the United States Postal Service from complying with 

energy management goals, including Executive Orders No. 12003 and 12579. 

(b) IMPLEMENTATION- (1) The Postmaster General shall transmit to the Committee on Governmental 

Affairs and the Committee on Energy and Natural Resources of the Senate, and the Committee on 

Energy and Commerce and the Committee on Post Office and Civil Service of the House of 

Representatives, within 180 days after the date of the enactment of this Act, a plan for implementing this 

section. 

(2) The Postmaster General shall designate buildings to be surveyed in the project so as to obtain a 

sample of United States Postal Service facilities of the types and in the climates that consume the major 

portion of the energy consumed by the United States Postal Service. 

(3) For the purposes of this section, an improvement shall be considered cost effective if the cost of the 

energy saved or displaced by the improvement exceeds the cost of the improvement over the remaining 

life of the facility or the remaining term of a lease of a building leased by the United States Postal 

Service. 

(c) REPORT- As soon as practicable after the completion of the project carried out under this section, 

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the Postmaster General shall transmit a report of the findings and conclusions of the survey to the 

Committee on Governmental Affairs and the Committee on Energy and Natural Resources of the Senate, 

and the Committee on Energy and Commerce and the Committee on Post Office and Civil Service of the 

House of Representatives. 

SEC. 165. UNITED STATES POSTAL SERVICE ENERGY MANAGEMENT REPORT. 

Not later than one year after the date of the enactment of this Act, and not later than January 1 of each 

year thereafter, the Postmaster General shall submit a report to the Committee on Governmental Affairs 

and the Committee on Energy and Natural Resources of the Senate and the Committee on Energy and 

Commerce and the Committee on Post Office and Civil Service of the House of Representatives on the 

United States Postal Service's building management program as it relates to energy efficiency. The report 

shall include, but not be limited to-- 

(1) a description of actions taken to reduce energy consumption; 

(2) future plans to reduce energy consumption; 

(3) an assessment of the success of the energy conservation program; 

(4) a statement of energy costs incurred in operating and maintaining all United States Postal 

Service facilities; and 

(5) the status of the energy efficient procurement program established under section 163. 

SEC. 166. ENERGY MANAGEMENT REQUIREMENTS FOR THE UNITED STATES POSTAL 

SERVICE. 

(a) ENERGY MANAGEMENT REQUIREMENTS FOR POSTAL FACILITIES- (1) The Postmaster 

General shall, to the maximum extent practicable, ensure that each United States Postal Service facility 

meets the energy management requirements for Federal buildings and agencies specified in section 543 

of the National Energy Conservation Policy Act (42 U.S.C. 8253). 

(2) The Postmaster General may exclude from the requirements of such section any facility or collection 

of facilities, and the associated energy consumption and gross square footage if the Postmaster General 

finds that compliance with the requirements of such section would be impracticable. A finding of 

impracticability shall be based on the energy intensiveness of activities carried out in such facility or 

collection of facilities, the type and amount of energy consumed, or the technical feasibility of making 

the desired changes. The Postmaster General shall identify and list in the report required under section 

165 the facilities designated by it for such exclusion. 

(b) IMPLEMENTATION STEPS- In carrying subsection (a), the Postmaster General shall-- 

(1) not later than 1 year after the date of the enactment of this Act, prepare or update, as 

appropriate, a plan (which may be submitted as part of the first report submitted under section 

165)-- 

(A) describing how this section will be implemented; 

(B) designating personnel primarily responsible for achieving the requirements of this 

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section; and 

(C) identifying high priority projects; 

(2) perform energy surveys of United States Postal Service facilities as necessary to achieve the 

requirements of this section; 

(3) install those energy conservation measures that will attain the requirements of this section in a 

cost-effective manner as defined in section 544 of the National Energy Conservation Policy Act 

(42 U.S.C. 8254); and 

(4) ensure that the operation and maintenance procedures applied under this section are continued. 

SEC. 167. GOVERNMENT CONTRACT INCENTIVES. 

(a) ESTABLISHMENT OF CRITERIA- Each agency, in consultation with the Federal Acquisition 

Regulatory Council, shall establish criteria for the improvement of energy efficiency in Federal facilities 

operated by Federal Government contractors or subcontractors. 

(b) PURPOSE OF CRITERIA- The criteria established under subsection (a) shall be used to encourage 

Federal contractors, and their subcontractors, which manage and operate federally-owned facilities, to 

adopt and utilize energy conservation measures designed to reduce energy costs in Government-owned 

and contractor-operated facilities and which are ultimately borne by the Federal Government. 

SEC. 168. ENERGY MANAGEMENT REQUIREMENTS FOR CONGRESSIONAL BUILDINGS. 

(a) IN GENERAL- The Architect of the Capitol (hereafter in this section referred to as the `Architect') 

shall undertake a program of analysis and, as necessary, retrofit of the Capitol Building, the Senate 

Office Buildings, the House Office Buildings, and the Capitol Grounds, in accordance with subsection 

(b). 

(b) PROGRAM- 

(1) LIGHTING- 

(A) IMPLEMENTATION- 

(i) IN GENERAL- Not later than 18 months after the date of the enactment of this Act 

and subject to the availability of funds to carry out this section, the Architect shall 

begin implementing a program to replace in each building described in subsection (a) 

all inefficient office and general use area fluorescent lighting systems with systems 

that incorporate the best available design and technology and that have payback 

periods of 10 years or less, as determined by using methods and procedures 

established under section 544(a) of the National Energy and Conservation Policy Act 

(42 U.S.C. 8254(a)). 

(ii) REPLACEMENT OF INCANDESCENT LIGHTING- Whenever practicable in 

office and general use areas, the Architect shall replace incandescent lighting with 

efficient fluorescent lighting.

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(B) COMPLETION- Subject to the availability of funds to carry out this section, the 

program described in subparagraph (A) shall be completed not later than 5 years after the 

date of the enactment of this Act. 

(2) EVALUATION AND REPORT- 

(A) IN GENERAL- Not later than 6 months after the date of the enactment of this Act, the 

Architect shall submit to the Speaker of the House of Representatives and the President pro 

tempore of the Senate a report evaluating potential energy conservation measures for each 

building described in subsection (a) in the areas of heating, ventilation, air conditioning 

equipment, insulation, windows, domestic hot water, food service equipment, and automatic 

control equipment. 

(B) COSTS- The report submitted under subparagraph (A) shall detail the projected 

installation cost, energy and cost savings, and payback period of each energy conservation 

measure, as determined by using methods and procedures established under section 544(a) 

of the National Energy Conservation Policy Act (42 U.S.C. 8254(a)). 

(3) REVIEW AND APPROVAL OF ENERGY CONSERVATION MEASURES- The Committee 

on Public Works and Transportation of the House of Representatives and the Committee on Rules 

and Administration of the Senate shall review the energy conservation measures identified in 

accordance with paragraph (2) and shall approve any such measure before it may be implemented. 

(4) UTILITY INCENTIVE PROGRAMS- In carrying out this section, the Architect is authorized 

and encouraged to-- 

(A) accept any rebate or other financial incentive offered through a program for energy 

conservation or demand management of electricity, water, or gas that-- 

(i) is conducted by an electric, natural gas, or water utility; 

(ii) is generally available to customers of the utility; and 

(iii) provides for the adoption of energy efficiency technologies or practices that the 

Architect determines are cost-effective for the buildings described in subsection (a); 

and 

(B) enter into negotiations with electric and natural gas utilities to design a special demand 

management and conservation incentive program to address the unique needs of the 

buildings described in subsection (a). 

(5) USE OF SAVINGS- The Architect shall use an amount equal to the rebate or other savings 

from the financial incentive programs under paragraph (4)(A), without additional authorization or 

appropriation, for the implementation of additional energy and water conservation measures in the 

buildings under the jurisdiction of the Architect. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

are necessary to carry out this section. 

Subtitle G--Miscellaneous

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SEC. 171. ENERGY INFORMATION. 

(a) ENERGY INFORMATION ADMINISTRATION- Section 205(i)(1) of the Department of Energy 

Organization Act (42 U.S.C. 7135(i)(1)) is amended-- 

(1) in the matter preceding subparagraph (A), by striking `on at least a triennial basis' and inserting 

in lieu thereof the following: `at least once every two years'; and 

(2) by amending subparagraph (D) to read as follows: 

`(D) use of nonpurchased sources of energy, such as solar, wind, biomass, geothermal, waste byproducts, and cogeneration.'. 

(b) RENEWABLE ENERGY INFORMATION- Section 205 of the Department of Energy Organization 

Act (42 U.S.C. 7135) is amended by adding at the end the following new subsections: 

`(j)(1) The Administrator shall annually collect and publish the results of a survey of electricity 

production from domestic renewable energy resources, including production in kilowatt hours, total 

installed capacity, capacity factor, and any other measure of production efficiency. Such results shall 

distinguish between various renewable energy resources. 

`(2) In carrying out this subsection, the Administrator shall-- 

`(A) utilize, to the maximum extent practicable and consistent with the faithful execution of his 

responsibilities under this Act, reliable statistical sampling techniques; and 

`(B) otherwise take into account the reporting burdens of energy information by small businesses. 

`(3) As used in this subsection, the term `renewable energy resources' includes energy derived from solar 

thermal, geothermal, biomass, wind, and photovoltaic resources. 

`(k) Pursuant to section 52(a) of the Federal Energy Administration Act of 1974 (15 U.S.C. 790a(a)), the 

Administrator shall-- 

`(1) conduct surveys of residential and commercial energy use at least once every 3 years, and 

make such information available to the public; 

`(2) when surveying electric utilities, collect information on demand-side management programs 

conducted by such utilities, including information regarding the types of demand-side management 

programs being operated, the quantity of measures installed, expenditures on demand-side 

management programs, estimates of energy savings resulting from such programs, and whether the 

savings estimates were verified; and 

`(3) in carrying out this subsection, take into account reporting burdens and the protection of 

proprietary information as required by law. 

`(l) In order to improve the ability to evaluate the effectiveness of the Nation's energy efficiency policies 

and programs, the Administrator shall, in carrying out the data collection provisions of subsections (i) 

and (k), consider-- 

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`(1) expanding the survey instruments to include questions regarding participation in Government 

and utility conservation programs; 

`(2) expanding fuel-use surveys in order to provide greater detail on energy use by user subgroups; 

and 

`(3) expanding the scope of data collection on energy efficiency and load-management programs, 

including the effects of building construction practices such as those designed to obtain peak load 

shifting.'. 

SEC. 172. DISTRICT HEATING AND COOLING PROGRAMS. 

(a) IN GENERAL- The Secretary, in consultation with appropriate industry organizations, shall conduct 

a study to-- 

(1) assess existing district heating and cooling technologies to determine cost-effectiveness, 

technical performance, energy efficiency, and environmental impacts as compared to alternative 

methods for heating and cooling buildings; 

(2) estimate the economic value of benefits that may result from implementation of district heating 

and cooling systems but that are not currently recognized, such as reduced emissions of air 

pollutants, local economic development, and energy security; 

(3) evaluate the cost-effectiveness, including the economic value referred to in paragraph (2), of 

cogenerated district heating and cooling technologies compared to other alternatives for generating 

or conserving electricity; and 

(4) assess and make recommendations for reducing institutional and other constraints on the 

implementation of district heating and cooling systems. 

(b) REPORT- Not later than 2 years after the date of the enactment of this Act, the Secretary shall 

transmit to the Congress a report containing the findings, conclusions and recommendations, if any, of 

the Secretary for carrying out Federal, State, and local programs as a result of the study conducted under 

subsection (a). 

SEC. 173. STUDY AND REPORT ON VIBRATION REDUCTION TECHNOLOGIES. 

(a) IN GENERAL- The Secretary shall, in consultation with the appropriate industry representatives, 

conduct a study to assess the cost-effectiveness, technical performance, energy efficiency, and 

environmental impacts of active noise and vibration cancellation technologies that use fast adapting 

algorithms. 

(b) PROCEDURE- In carrying out such study, the Secretary shall-- 

(1) estimate the potential for conserving energy and the economic and environmental benefits that 

may result from implementing active noise and vibration abatement technologies in demand side 

management; and 

(2) evaluate the cost-effectiveness of active noise and vibration cancellation technologies as 

compared to other alternatives for reducing noise and vibration.

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(c) REPORT- The Secretary shall transmit to the Congress, not later than 12 months after the date of the 

enactment of this Act, a report containing the findings and conclusions of the study carried out under this 

section. 

(d) DEMONSTRATION- The Secretary may, based on the findings and conclusions of the study carried 

out under this section, conduct at least one project designed to demonstrate the commercial application 

of active noise and vibration cancellation technologies using fast adapting algorithms in products or 

equipment with a significant potential for increased energy efficiency. 

TITLE II--NATURAL GAS 

SEC. 201. FEWER RESTRICTIONS ON CERTAIN NATURAL GAS IMPORTS AND EXPORTS. 

Section 3 of the Natural Gas Act (15 U.S.C. 717b) is amended by inserting `(a)' before `After six 

months'; and by adding at the end the following new subsections: 

`(b) With respect to natural gas which is imported into the United States from a nation with which there 

is in effect a free trade agreement requiring national treatment for trade in natural gas, and with respect to 

liquefied natural gas-- 

`(1) the importation of such natural gas shall be treated as a `first sale' within the meaning of 

section 2(21) of the Natural Gas Policy Act of 1978; and 

`(2) the Commission shall not, on the basis of national origin, treat any such imported natural gas 

on an unjust, unreasonable, unduly discriminatory, or preferential basis. 

`(c) For purposes of subsection (a), the importation of the natural gas referred to in subsection (b), or the 

exportation of natural gas to a nation with which there is in effect a free trade agreement requiring 

national treatment for trade in natural gas, shall be deemed to be consistent with the public interest, and 

applications for such importation or exportation shall be granted without modification or delay.'. 

SEC. 202. SENSE OF CONGRESS. 

It is the sense of the Congress that natural gas consumers and producers, and the national economy, are 

best served by a competitive natural gas wellhead market. 

TITLE III--ALTERNATIVE FUELS--GENERAL 

SEC. 301. DEFINITIONS. 

For purposes of this title, title IV, and title V (unless otherwise specified)-- 

(1) the term `Administrator' means the Administrator of the Environmental Protection Agency; 

(2) the term `alternative fuel' means methanol, denatured ethanol, and other alcohols; mixtures 

containing 85 percent or more (or such other percentage, but not less than 70 percent, as 

determined by the Secretary, by rule, to provide for requirements relating to cold start, safety, or 

vehicle functions) by volume of methanol, denatured ethanol, and other alcohols with gasoline or 

other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; fuels (other 

than alcohol) derived from biological materials; electricity (including electricity from solar 

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energy); and any other fuel the Secretary determines, by rule, is substantially not petroleum and 

would yield substantial energy security benefits and substantial environmental benefits; 

(3) the term `alternative fueled vehicle' means a dedicated vehicle or a dual fueled vehicle; 

(4) the term `comparable conventionally fueled motor vehicle' means a motor vehicle which is, as 

determined by the Secretary-- 

(A) commercially available at the time the comparability of the vehicle is being assessed; 

(B) powered by an internal combustion engine that utilizes gasoline or diesel fuel as its fuel 

source; and 

(C) provides passenger capacity or payload capacity the same or similar to the alternative 

fueled vehicle to which it is being compared; 

(5) `covered person' means a person that owns, operates, leases, or otherwise controls-- 

(A) a fleet that contains at least 20 motor vehicles that are centrally fueled or capable of 

being centrally fueled, and are used primarily within a metropolitan statistical area or a 

consolidated metropolitan statistical area, as established by the Bureau of the Census, with a 

1980 population of 250,000 or more; and 

(B) at least 50 motor vehicles within the United States; 

(6) the term `dedicated vehicle' means-- 

(A) a dedicated automobile, as such term is defined in section 513(h)(1)(C) of the Motor 

Vehicle Information and Cost Savings Act; or 

(B) a motor vehicle, other than an automobile, that operates solely on alternative fuel; 

(7) the term `domestic' means derived from resources within the several States, the District of 

Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American 

Samoa, the Commonwealth of the Northern Mariana Islands, or any other Commonwealth, 

territory, or possession of the United States, including the outer Continental Shelf, as such term is 

defined in the Outer Continental Shelf Lands Act, or from resources within a Nation with which 

there is in effect a free trade agreement requiring national treatment for trade; 

(8) the term `dual fueled vehicle' means-- 

(A) dual fueled automobile, as such term is defined in section 513(h)(1)(D) of the Motor 

Vehicle Information and Cost Savings Act; or 

(B) a motor vehicle, other than an automobile, that is capable of operating on alternative fuel 

and is capable of operating on gasoline or diesel fuel; 

(9) the term `fleet' means a group of 20 or more light duty motor vehicles, used primarily in a 

metropolitan statistical area or consolidated metropolitan statistical area, as established by the 

Bureau of the Census, with a 1980 population of more than 250,000, that are centrally fueled or 

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capable of being centrally fueled and are owned, operated, leased, or otherwise controlled by a 

governmental entity or other person who owns, operates, leases, or otherwise controls 50 or more 

such vehicles, by any person who controls such person, by any person controlled by such person, 

and by any person under common control with such person, except that such term does not 

include-- 

(A) motor vehicles held for lease or rental to the general public; 

(B) motor vehicles held for sale by motor vehicle dealers, including demonstration motor 

vehicles; 

(C) motor vehicles used for motor vehicle manufacturer product evaluations or tests; 

(D) law enforcement motor vehicles; 

(E) emergency motor vehicles; 

(F) motor vehicles acquired and used for military purposes that the Secretary of Defense has 

certified to the Secretary must be exempt for national security reasons; 

(G) nonroad vehicles, including farm and construction motor vehicles; or 

(H) motor vehicles which under normal operations are garaged at personal residences at 

night; 

(10) the term `fuel supplier' means-- 

(A) any person engaged in the importing, refining, or processing of crude oil to produce 

motor fuel; 

(B) any person engaged in the importation, production, storage, transportation, distribution, 

or sale of motor fuel; and 

(C) any person engaged in generating, transmitting, importing, or selling at wholesale or 

retail electricity; 

(11) the term `light duty motor vehicle' means a light duty truck or light duty vehicle, as such 

terms are defined under section 216(7) of the Clean Air Act (42 U.S.C. 7550(7)), of less than or 

equal to 8,500 pounds gross vehicle weight rating; 

(12) the term `motor fuel' means any substance suitable as a fuel for a motor vehicle; 

(13) the term `motor vehicle' has the meaning given such term under section 216(2) of the Clean 

Air Act (42 U.S.C. 7550(2)); and 

(14) the term `replacement fuel' means the portion of any motor fuel that is methanol, ethanol, or 

other alcohols, natural gas, liquefied petroleum gas, hydrogen, coal derived liquid fuels, fuels 

(other than alcohol) derived from biological materials, electricity (including electricity from solar 

energy), ethers, or any other fuel the Secretary determines, by rule, is substantially not petroleum 

and would yield substantial energy security benefits and substantial environmental benefits.

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SEC. 302. AMENDMENTS TO THE ENERGY POLICY AND CONSERVATION ACT. 

(a) AMENDMENTS- Section 400AA of the Energy Policy and Conservation Act (42 U.S.C. 6374) is 

amended-- 

(1) in subsection (a)(1)-- 

(A) by striking `passenger automobiles and light duty trucks' and inserting in lieu thereof 

`vehicles'; and 

(B) by striking `alcohol powered vehicles, dual energy vehicles, natural gas powered 

vehicles, or natural gas dual energy vehicles.' and inserting in lieu thereof `alternative fueled 

vehicles. In no event shall the number of such vehicles acquired be less than the number 

required under section 303 of the Energy Policy Act of 1992.'; 

(2) by amending subsection (a)(3) to read as follows: 

`(3)(A) To the extent practicable, the Secretary shall acquire both dedicated and dual fueled vehicles, and 

shall ensure that each type of alternative fueled vehicle is used by the Federal Government. 

`(B) Vehicles acquired under this section shall be acquired from original equipment manufacturers. If 

such vehicles are not available from original equipment manufacturers, vehicles converted to use 

alternative fuels may be acquired if, after conversion, the original equipment manufacturer's warranty 

continues to apply to such vehicles, pursuant to an agreement between the original equipment 

manufacturer and the person performing the conversion. This subparagraph shall not apply to vehicles 

acquired by the United States Postal Service pursuant to a contract entered into by the United States 

Postal Service before the date of enactment of this subparagraph and which terminates on or before 

December 31, 1997. 

`(C) Alternative fueled vehicles, other than those described in subparagraph (B), may be acquired solely 

for the purposes of studies under subsection (b), whether or not original equipment manufacturer 

warranties still apply. 

`(D) In deciding which types of alternative fueled vehicles to acquire in implementing this part, the 

Secretary shall consider as a factor-- 

`(i) which types of vehicles yield the greatest reduction in pollutants emitted per dollar spent; and 

`(ii) the source of the fuel to supply the vehicles, giving preference to vehicles that operate on 

alternative fuels derived from domestic sources. 

`(E) Dual fueled vehicles acquired pursuant to this section shall be operated on alternative fuels unless 

the Secretary determines that operation on such alternative fuels is not feasible. 

`(F) At least 50 percent of the alternative fuels used in vehicles acquired pursuant to this section shall be 

derived from domestic feedstocks, except to the extent inconsistent with the General Agreement on 

Tariffs and Trade. The Secretary shall issue regulations to implement this requirement. For purposes of 

this subparagraph, the term `domestic' has the meaning given such term in section 301(7) of the Energy 

Policy Act of 1992. 

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`(G) Except to the extent inconsistent with the General Agreement on Tariffs and Trade, vehicles 

acquired under this section shall be motor vehicles manufactured in the United States or Canada.'; 

(3) by adding at the end of subsection (a) the following new paragraph: 

`(4) Acquisitions of vehicles under this section shall, to the extent practicable, be coordinated with 

acquisitions of alternative fueled vehicles by State and local governments.'; 

(4) in subsection (b), by inserting after paragraph (2) the following new paragraphs: 

`(3)(A) The Secretary, in cooperation with the Environmental Protection Agency and the Department of 

Transportation, shall collect data and conduct a study of heavy duty vehicles acquired under subsection 

(a), which shall at a minimum address-- 

`(i) the performance of such vehicles, including reliability, durability, and performance in cold 

weather and at high altitude; 

`(ii) the fuel economy, safety, and emissions of such vehicles; and 

`(iii) a comparison of the operation and maintenance costs of such vehicles to the operation and 

maintenance costs of conventionally fueled heavy duty vehicles. 

`(B) The Secretary shall provide a report on the results of the study conducted under subparagraph (A) to 

the Committees on Commerce, Science, and Transportation, Governmental Affairs, and Energy and 

Natural Resources of the Senate, and the Committees on Energy and Commerce and Government 

Operations of the House of Representatives, within one year after the first such vehicles are acquired, 

and annually thereafter. 

`(4)(A) The Secretary and the Administrator of the General Services Administration shall conduct a 

study of the advisability, feasibility, and timing of the disposal of heavy duty vehicles acquired under 

subsection (a) and any problems with such disposal. Such study shall take into account existing laws 

governing the sale of Government vehicles and shall specifically focus on when to sell such vehicles and 

what price to charge. 

`(B) The Secretary and the Administrator of the General Services Administration shall report the results 

of the study conducted under subparagraph (A) to the Committees on Commerce, Science, and 

Transportation, Governmental Affairs, and Energy and Natural Resources of the Senate, and the 

Committee on Energy and Commerce and the Committee on Government Operations of the House of 

Representatives, within one year after funds are appropriated for carrying out this paragraph. 

`(5) Studies undertaken under this subsection shall be coordinated with relevant testing activities of the 

Environmental Protection Agency and the Department of Transportation.'; 

(5) in subsection (c)-- 

(A) by striking `alcohol or natural gas, alcohol or natural gas' and inserting in lieu thereof 

`alternative fuels, such fuels'; and 

(B) by striking `alcohol or natural gas' and inserting in lieu thereof `alternative fuel' in 

paragraph (1); 

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(6) in subsection (d)(2)(B), by striking `The Secretary' and inserting in lieu thereof `To the extent 

that appropriations are available for such purposes, the Secretary'; 

(7) in subsection (g), by striking paragraphs (2) through (6) and inserting in lieu thereof the 

following: 

`(2) the term `alternative fuel' means methanol, denatured ethanol, and other alcohols; mixtures 

containing 85 percent or more (or such other percentage, but not less than 70 percent, as 

determined by the Secretary, by rule, to provide for requirements relating to cold start, safety, or 

vehicle functions) by volume of methanol, denatured ethanol, and other alcohols with gasoline or 

other fuels; natural gas; liquefied petroleum gas; hydrogen; coal-derived liquid fuels; fuels (other 

than alcohol) derived from biological materials; electricity (including electricity from solar 

energy); and any other fuel the Secretary determines, by rule, is substantially not petroleum and 

would yield substantial energy security benefits and substantial environmental benefits; 

`(3) the term `alternative fueled vehicle' means a dedicated vehicle or a dual fueled vehicle; 

`(4) the term `dedicated vehicle' means-- 

`(A) a dedicated automobile, as such term is defined in section 513(h)(1)(C) of the Motor 

Vehicle Information and Cost Savings Act; or 

`(B) a motor vehicle, other than an automobile, that operates solely on alternative fuel; 

`(5) the term `dual fueled vehicle' means-- 

`(A) dual fueled automobile, as such term is defined in section 513(h)(1)(D) of the Motor 

Vehicle Information and Cost Savings Act; or 

`(B) a motor vehicle, other than an automobile, that is capable of operating on alternative 

fuel and is capable of operating on gasoline or diesel fuel; and 

`(6) the term `heavy duty vehicle' means a vehicle of greater than 8,500 pounds gross vehicle 

weight rating.'; and 

(8) by amending subsection (i)(1) to read as follows: `(1) For the purposes of this section, there are 

authorized to be appropriated such sums as may be necessary for fiscal years 1993 through 1998, 

to remain available until expended.'. 

(b) REPEAL OF TERMINATION DATE- Section 4(b) of the Alternative Motor Fuels Act of 1988 is 

repealed. 

SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT. 

(a) GENERAL REQUIREMENTS- (1) The Federal Government shall acquire at least-- 

(A) 5,000 light duty alternative fueled vehicles in fiscal year 1993; 

(B) 7,500 light duty alternative fueled vehicles in fiscal year 1994; and

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(C) 10,000 light duty alternative fueled vehicles in fiscal year 1995. 

(2) The Secretary shall allocate the acquisitions necessary to meet the requirements under paragraph (1). 

(b) PERCENTAGE REQUIREMENTS- (1) Of the total number of vehicles acquired by a Federal fleet, 

at least-- 

(A) 25 percent in fiscal year 1996; 

(B) 33 percent in fiscal year 1997; 

(C) 50 percent in fiscal year 1998; and 

(D) 75 percent in fiscal year 1999 and thereafter, 

shall be alternative fueled vehicles. 

(2) The Secretary, in consultation with the Administrator of General Services where appropriate, may 

permit a Federal fleet to acquire a smaller percentage than is required in paragraph (1), so long as the 

aggregate percentage acquired by all Federal fleets is at least equal to the required percentage. 

(3) For purposes of this subsection, the term `Federal fleet' means 20 or more light duty motor vehicles, 

located in a metropolitan statistical area or consolidated metropolitan statistical area, as established by 

the Bureau of the Census, with a 1980 population of more than 250,000, that are centrally fueled or 

capable of being centrally fueled and are owned, operated, leased, or otherwise controlled by or assigned 

to any Federal executive department, military department, Government corporation, independent 

establishment, or executive agency, the United States Postal Service, the Congress, the courts of the 

United States, or the Executive Office of the President. Such term does not include-- 

(A) motor vehicles held for lease or rental to the general public; 

(B) motor vehicles used for motor vehicle manufacturer product evaluations or tests; 

(C) law enforcement vehicles; 

(D) emergency vehicles; 

(E) motor vehicles acquired and used for military purposes that the Secretary of Defense has 

certified to the Secretary must be exempt for national security reasons; or 

(F) nonroad vehicles, including farm and construction vehicles. 

(c) ALLOCATION OF INCREMENTAL COSTS- The General Services Administration and any other 

Federal agency that procures motor vehicles for distribution to other Federal agencies may allocate the 

incremental cost of alternative fueled vehicles over the cost of comparable gasoline vehicles across the 

entire fleet of motor vehicles distributed by such agency. 

(d) APPLICATION OF REQUIREMENTS- The provisions of section 400AA of the Energy Policy and 

Conservation Act relating to the Federal acquisition of alternative fueled vehicles shall apply to the 

acquisition of vehicles pursuant to this section.

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(e) RESALE- The Administrator of General Services shall take all feasible steps to ensure that all 

alternative fueled vehicles sold by the Federal Government shall remain alternative fueled vehicles at 

time of sale. 

(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for carrying 

out this section, such sums as may be necessary for fiscal years 1993 through 1998, to remain available 

until expended. 

SEC. 304. REFUELING. 

(a) IN GENERAL- Federal agencies shall, to the maximum extent practicable, arrange for the fueling of 

alternative fueled vehicles acquired under section 303 at commercial fueling facilities that offer 

alternative fuels for sale to the public. If publicly available fueling facilities are not convenient or 

accessible to the location of Federal alternative fueled vehicles purchased under section 303, Federal 

agencies are authorized to enter into commercial arrangements for the purposes of fueling Federal 

alternative fueled vehicles, including, as appropriate, purchase, lease, contract, construction, or other 

arrangements in which the Federal Government is a participant. 

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section such sums as may be necessary for fiscal years 1993 through 1998, 

to remain available until expended. 

SEC. 305. FEDERAL AGENCY PROMOTION, EDUCATION, AND COORDINATION. 

(a) PROMOTION AND EDUCATION- The Secretary, in cooperation with the Administrator of General 

Services, shall promote programs and educate officials and employees of Federal agencies on the merits 

of alternative fueled vehicles. The Secretary, in cooperation with the Administrator of General Services, 

shall provide and disseminate information to Federal agencies on-- 

(1) the location of refueling and maintenance facilities available to alternative fueled vehicles in 

the Federal fleet; 

(2) the range and performance capabilities of alternative fueled vehicles; 

(3) State and local government and commercial alternative fueled vehicle programs; 

(4) Federal alternative fueled vehicle purchases and placements; 

(5) the operation and maintenance of alternative fueled vehicles in accordance with the 

manufacturer's standards and recommendations; and 

(6) incentive programs established pursuant to sections 306 and 307 of this Act. 

(b) ASSISTANCE IN PROCUREMENT AND PLACEMENT- The Secretary, in cooperation with the 

Administrator of General Services, shall provide guidance, coordination and technical assistance to 

Federal agencies in the procurement and geographic location of alternative fueled vehicles purchased 

through the Administrator of General Services. The procurement and geographic location of such 

vehicles shall comply with the purchase requirements under section 303 of this Act. 

SEC. 306. AGENCY INCENTIVES PROGRAM.

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(a) REDUCTION IN RATES- To encourage and promote use of alternative fueled vehicles in Federal 

agencies, the Administrator of General Services may offer a reduction in fees charged to agencies for the 

lease of alternative fueled vehicles below those fees charged for the lease of comparable conventionally 

fueled motor vehicles. 

(b) SUNSET PROVISION- This section shall cease to be effective 3 years after the date of the 

enactment of this Act. 

SEC. 307. RECOGNITION AND INCENTIVE AWARDS PROGRAM. 

(a) AWARDS PROGRAM- The Administrator of General Services shall establish annual awards 

program to recognize those Federal employees who demonstrate the strongest commitment to the use of 

alternative fuels and fuel conservation in Federal motor vehicles. 

(b) CRITERIA- The Administrator of General Services shall provide annual awards to Federal 

employees who best demonstrate a commitment-- 

(1) to the success of the Federal alternative fueled vehicle program through-- 

(A) exemplary promotion of alternative fueled vehicle use within Federal agencies; 

(B) proper alternative fueled vehicle care and maintenance; 

(C) coordination with Federal, State, and local efforts; 

(D) innovative alternative fueled vehicle procurement, refueling, and maintenance 

arrangements with commercial entities; 

(E) making regular requests for alternative fueled vehicles for agency use; and 

(F) maintaining a high number of alternative fueled vehicles used relative to comparable 

conventionally fueled motor vehicles used; and 

(2) to fuel efficiency in Federal motor vehicle use through the promotion of such measures as 

increased use of fuel-efficient vehicles, carpooling, ride-sharing, regular maintenance, and other 

conservation and awareness measures. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for the 

purpose of carrying out this section not more than $35,000 for fiscal year 1994 and such sums as may be 

necessary for each of the fiscal years 1995 and 1996. 

SEC. 308. MEASUREMENT OF ALTERNATIVE FUEL USE. 

The Administrator of General Services shall use such means as may be necessary to measure the 

percentage of alternative fuel use in dual-fueled vehicles procured by the Administrator of General 

Services. Not later than one year after the date of the enactment of this Act, the Secretary, in consultation 

with the Administrator of General Services, shall issue guidelines to Federal agencies for use in 

measuring the aggregate percentage of alternative fuel use in dual-fueled vehicles in their fleets.

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SEC. 309. INFORMATION COLLECTION. 

Section 400AA(b)(1)(A) of the Energy Policy and Conservation Act is amended by striking `the vehicles 

acquired under subsection (a)' and inserting in lieu thereof `a representative sample of alternative fueled 

vehicles in Federal fleets'. 

SEC. 310. GENERAL SERVICES ADMINISTRATION REPORT. 

Not later than one year after the date of the enactment of this Act, and biennially thereafter, the 

Administrator of General Services shall report to the Congress on the General Services Administration's 

alternative fueled vehicle program under this Act. The report shall contain information on-- 

(1) the number and type of alternative fueled vehicles procured; 

(2) the location of alternative fueled vehicles by standard Federal region; 

(3) the total number of alternative fueled vehicles used by each Federal agency; 

(4) arrangements with commercial entities for refueling and maintenance of alternative fueled 

vehicles; 

(5) future alternative fueled vehicle procurement and placement strategy; 

(6) the difference in cost between the purchase, maintenance, and operation of alternative fueled 

vehicles and the purchase, maintenance, and operation of comparable conventionally fueled motor 

vehicles; 

(7) coordination among Federal, State, and local governments for alternative fueled vehicle 

procurement and placement; 

(8) the percentage of alternative fuel use in dual-fueled vehicles procured by the Administrator of 

General Services as measured under section 308; 

(9) a description of the representative sample of alternative fueled vehicles as determined under 

section 400AA(b)(1)(A) of the Energy Policy and Conservation Act; and 

(10) award recipients under this title. 

SEC. 311. UNITED STATES POSTAL SERVICE. 

(a) REPORT- Not later than one year after the date of the enactment of this Act, and biennially 

thereafter, the Postmaster General shall submit a report to the Congress on the Postal Service's 

alternative fueled vehicle program. The report shall contain information on-- 

(1) the total number and type of alternative fueled vehicles procured prior to the date of the 

enactment of this Act (first report only); 

(2) the number and type of alternative fueled vehicles procured in the preceding year;

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(3) the location of alternative fueled vehicles by region; 

(4) arrangements with commercial entities for purposes of refueling and maintenance; 

(5) future alternative fuel procurement and placement strategy; 

(6) the difference in cost between the purchase, maintenance, and operation of alternative fueled 

vehicles and the purchase, maintenance, and operation of comparable conventionally fueled motor 

vehicles; 

(7) the percentage of alternative fuel use in dual-fueled vehicles procured by the Postmaster 

General; 

(8) promotions and incentives to encourage the use of alternative fuels in dual-fueled vehicles; and

(9) an assessment of the program's relative success and policy recommendations for strengthening 

the program. 

(b) COORDINATION- To the maximum extent practicable, the Postmaster General shall coordinate the 

Postal Service's alternative fueled vehicle procurement, placement, refueling, and maintenance programs 

with those at the Federal, State, and local level. The Postmaster General shall communicate, share, and 

disseminate, on a regular basis, information on such programs with the Secretary, the Administrator of 

General Services, and heads of appropriate Federal agencies. 

(c) PROGRAM CRITERIA- The Postmaster General shall consider the following criteria in the 

procurement and placement of alternative fueled vehicles: 

(1) The procurement plans of State and local governments and other public and private 

institutions. 

(2) The current and future availability of refueling and repair facilities. 

(3) The reduction in emissions of the Postal fleet. 

(4) Whether the vehicle is to be used in a nonattainment area as specified in the Clean Air Act 

Amendments of 1990. 

(5) The operational requirements of the Postal fleet. 

(6) The contribution to the reduction in the consumption of oil in the transportation sector. 

TITLE IV--ALTERNATIVE FUELS--NON-FEDERAL PROGRAMS 

SEC. 401. TRUCK COMMERCIAL APPLICATION PROGRAM. 

(a) ALTERNATIVE FUELED TRUCKS- Section 400BB(a) of the Energy Policy and Conservation Act 

(42 U.S.C. 6374a(a)) is amended by striking `alcohol and natural gas' and inserting in lieu thereof 

`alternative fuels'. 

(b) FUNDING- Section 400BB(b)(1) of such Act (42 U.S.C. 6374a(b)(1)) is amended to read as follows: 

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`(1) There are authorized to be appropriated to the Secretary for carrying out this section such sums as 

may be necessary for fiscal years 1993 through 1995, to remain available until expended.'. 

SEC. 402. CONFORMING AMENDMENTS. 

Part J of title III of the Energy Policy and Conservation Act is amended-- 

(1) in section 400CC(a)-- 

(A) by striking `alcohol and buses capable of operating on natural gas' and inserting in lieu 

thereof `alternative fuels'; and 

(B) by striking `both buses capable of operating on alcohol and buses capable of operating 

on natural gas' and inserting in lieu thereof `each of the various types of alternative fuel 

buses'; 

(2) in section 400DD(d), by striking `alcohols, natural gas, and other potential alternative motor' 

and inserting in lieu thereof `alternative'; and 

(3) in section 400DD (d) and (e), by striking `motor' each place it appears. 

SEC. 403. ALTERNATIVE MOTOR FUELS AMENDMENTS. 

Title V of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2001 et seq.) is amended-- 

(1) in section 501(1), by striking `alcohol or natural gas' and inserting in lieu thereof `alternative 

fuel'; 

(2) in section 502(e)-- 

(A) by striking `alcohol powered automobiles or natural gas powered' and inserting in lieu 

thereof `dedicated'; and 

(B) by striking `energy automobiles and natural gas dual energy' and inserting in lieu thereof 

`fueled'; 

(3) in section 506(a)(4)-- 

(A) in subparagraph (A)-- 

(i) by striking `alcohol powered automobiles or natural gas powered' and inserting in 

lieu thereof `dedicated'; and 

(ii) by striking `alcohol or natural gas, as the case may be' and inserting in lieu thereof 

`alternative fuels'; and 

(B) in subparagraph (B)-- 

(i) by striking `energy automobiles or natural gas dual energy' and inserting in lieu 

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thereof `fueled'; and 

(ii) by striking `energy automobile or natural gas dual energy automobile, as the case 

may be' and inserting in lieu thereof `fueled automobile'; and 

(4) in section 506(b)(3)-- 

(A) in subparagraph (A)-- 

(i) by striking `energy automobiles and natural gas dual energy' and inserting in lieu 

thereof `fueled'; 

(ii) by striking `alcohol or natural gas, as the case may be' and inserting in lieu thereof 

`alternative fuels' in clause (i); and 

(iii) by striking `alcohol or natural gas, as the case may be' and inserting in lieu 

thereof `alternative fuels' in clause (ii); and 

(B) in subparagraph (B)-- 

(i) by striking `dual energy' and inserting in lieu thereof `dual fueled'; and 

(ii) by striking `alcohol' and inserting in lieu thereof `alternative fuels' in clauses (i) 

and (ii); and 

(5) in section 513-- 

(A) in subsection (a)-- 

(i) by striking `ALCOHOL POWERED' and inserting in lieu thereof `DEDICATED'; 

(ii) by striking `If' and inserting in lieu thereof `Except as provided in subsection (c) 

or in section 503(a)(3), if'; 

(iii) by striking `alcohol powered' and inserting in lieu thereof `dedicated'; 

(iv) by striking `content of the alcohol' and inserting in lieu thereof `content of the 

alternative fuel'; and 

(v) by striking `gallon of alcohol' and inserting in lieu thereof `gallon of a liquid 

alternative fuel'; 

(B) in subsection (b)-- 

(i) by striking `ENERGY' and inserting in lieu thereof `FUELED'; 

(ii) by striking `If' and inserting in lieu thereof `Except as provided in subsection (d) 

or in section 503(a)(3), if'; 

(iii) by striking `energy' and inserting in lieu thereof `fueled'; and

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(iv) by striking `alcohol' and inserting in lieu thereof `alternative fuel' in paragraph 

(2); 

(C) in subsection (c)-- 

(i) by striking `NATURAL GAS POWERED' and inserting in lieu thereof 

`GASEOUS FUEL DEDICATED'; 

(ii) by striking `powered' and inserting in lieu thereof `dedicated'; 

(iii) by striking `natural gas' each place it appears in the first sentence and inserting in 

lieu thereof `gaseous fuel'; and 

(iv) by adding at the end the following new sentence: `For purposes of this section, the 

Secretary shall determine the appropriate gallons equivalent measurement for gaseous 

fuels other than natural gas, and a gallon equivalent of such gaseous fuel shall be 

considered to have a fuel content of 15 one-hundredths of a gallon of fuel.'; 

(D) in subsection (d)-- 

(i) by striking `NATURAL GAS DUAL ENERGY' and inserting in lieu thereof 

`GASEOUS FUEL DUAL FUELED'; 

(ii) by striking `dual energy' and inserting in lieu thereof `dual fueled'; and 

(iii) by striking `natural gas' each place it appears and inserting in lieu thereof 

`gaseous fuel'; 

(E) in subsection (e), by striking `alcohol powered automobile, dual energy automobile, 

natural gas powered automobile, or natural gas dual energy' and inserting in lieu thereof 

`dedicated automobile or dual fueled'; 

(F) in subsection (f)(2)(A)(i), by striking `alcohol powered automobiles, natural gas 

powered automobiles,' and inserting in lieu thereof `alternative fueled automobiles'; 

(G) in subsection (g)-- 

(i) in paragraph (1)-- 

(I) by inserting `, other than electric automobiles,' after `each category of 

automobiles' in subparagraph (A); 

(II) by striking `energy automobiles and natural gas dual energy' and inserting 

in lieu thereof `fueled' in subparagraph (A); 

(III) by inserting `, other than electric automobiles,' after `each category of 

automobiles' in subparagraph (B); 

(IV) by striking `energy automobiles and natural gas dual energy' and inserting 

in lieu thereof `fueled' in subparagraph (B);

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(V) by striking `energy automobiles and natural gas dual energy' and inserting 

in lieu thereof `fueled' both places it appears in subparagraph (C); and 

(VI) by striking `energy automobile or natural gas dual energy' and inserting in 

lieu thereof `fueled' in subparagraph (C); and 

(ii) in paragraph (2)-- 

(I) by striking `energy passenger automobiles or natural gas dual energy' and 

inserting in lieu thereof `fueled' in subparagraph (A); 

(II) by striking `alcohol powered automobiles or natural gas powered' and 

inserting in lieu thereof `dedicated' in subparagraph (B); and 

(III) by striking `energy automobiles and natural gas dual energy' and inserting 

in lieu thereof `fueled' in subparagraph (B); 

(H) in subsection (h)(1)-- 

(i) by striking subparagraphs (D) and (E) and redesignating subparagraph (C) as 

subparagraph (D); 

(ii) by striking subparagraphs (A) and (B) and inserting in lieu thereof the following 

new subparagraphs: 

`(A) the term `alternative fuel' means methanol, denatured ethanol, and other alcohols; mixtures 

containing 85 percent or more (or such other percentage, but not less than 70 percent, as 

determined by the Secretary, by rule, to provide for requirements relating to cold start, safety, or 

vehicle functions) by volume of methanol, denatured ethanol, and other alcohols with gasoline or 

other fuels; natural gas; liquefied petroleum gas; hydrogen; coal derived liquid fuels; fuels (other 

than alcohol) derived from biological materials; electricity (including electricity from solar 

energy); and any other fuel the Secretary determines, by rule, is substantially not petroleum and 

would yield substantial energy security benefits and substantial environmental benefits; 

`(B) the term `alternative fueled automobile' means an automobile that-- 

`(i) is a dedicated automobile; or 

`(ii) is a dual fueled automobile; 

`(C) the term `dedicated automobile' means an automobile that operates solely on alternative fuels; 

and'; and 

(iii) in subparagraph (D), as so redesignated by clause (i) of this subparagraph-- 

(I) by striking `dual energy' and inserting in lieu thereof `dual fueled'; 

(II) by striking `alcohol' and inserting in lieu thereof `alternative fuel' in clauses 

(i), (ii), and (iii);

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(III) by inserting `in the case of an automobile capable of operating on a 

mixture of an alternative fuel and gasoline or diesel fuel,' before `which, for 

model years' in clause (iii); and 

(IV) by striking the semicolon at the end of clause (iv) and inserting in lieu 

thereof a period; and 

(I) in subsection (h)(2)-- 

(i) by striking `paragraphs (1)(C) and (D)' and inserting in lieu thereof `paragraph (1)

(D)' in subparagraph (A); 

(ii) by striking `energy automobiles when operating on alcohol, and by natural gas 

dual energy automobiles when operating on natural gas' and inserting in lieu thereof 

`fueled automobiles when operating on alternative fuels' in subparagraph (A); 

(iii) by striking `energy automobiles or natural gas dual energy' and inserting in lieu 

thereof `fueled' both places it appears in subparagraph (A); 

(iv) by striking `energy automobiles and natural gas dual energy' and inserting in lieu 

thereof `fueled' in subparagraph (A); 

(v) by striking `energy' and inserting in lieu thereof `fueled' each place it appears in 

subparagraphs (B) and (C); and 

(vi) by inserting `other than electric automobiles' after `automobiles' each place it 

appears in subparagraphs (B) and (C). 

SEC. 404. VEHICULAR NATURAL GAS JURISDICTION. 

(a) NATURAL GAS ACT AMENDMENTS- (1) Section 1 of the Natural Gas Act (15 U.S.C. 717) is 

amended by inserting after subsection (c) the following new subsection: 

`(d) The provisions of this Act shall not apply to any person solely by reason of, or with respect to, any 

sale or transportation of vehicular natural gas if such person is-- 

`(1) not otherwise a natural-gas company; or 

`(2) subject primarily to regulation by a State commission, whether or not such State commission 

has, or is exercising, jurisdiction over the sale, sale for resale, or transportation of vehicular natural 

gas.'. 

(2) Section 2 of the Natural Gas Act (15 U.S.C. 717a) is amended by inserting after paragraph (9) the 

following new paragraph: 

`(10) `Vehicular natural gas' means natural gas that is ultimately used as a fuel in a self-propelled 

vehicle.'. 

(b) STATE LAWS AND REGULATIONS- The transportation or sale of natural gas by any person who 

is not otherwise a public utility, within the meaning of State law--

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(1) in closed containers; or 

(2) otherwise to any person for use by such person as a fuel in a self-propelled vehicle, 

shall not be considered to be a transportation or sale of natural gas within the meaning of any State law, 

regulation, or order in effect before January 1, 1989. This subsection shall not apply to any provision of 

any State law, regulation, or order to the extent that such provision has as its primary purpose the 

protection of public safety. 

(c) NONAPPLICABILITY OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935- (1) A 

company shall not be considered to be a gas utility company under section 2(a)(4) of the Public Utility 

Holding Company Act of 1935 (15 U.S.C. 79b(a)(4)) solely because it owns or operates facilities used 

for the distribution at retail of vehicular natural gas. 

(2) Notwithstanding section 11(b)(1) of the Public Utility Holding Company Act of 1935 (15 U.S.C. 79k

(b)(1)), a holding company registered under such Act solely by reason of the application of section 2(a)

(7) (A) or (B) of such Act with respect to control of a gas utility company or subsidiary thereof, may 

acquire or retain, in any geographic area, any interest in a company that is not a public utility company 

and which, as a primary business, is involved in the sale of vehicular natural gas or the manufacture, 

sale, transport, installation, servicing, or financing of equipment related to the sale for consumption of 

vehicular natural gas. 

(3) The sale or transportation of vehicular natural gas by a company, or any subsidiary of such company, 

shall not be taken into consideration in determining whether under section 3 of the Public Utility Holding 

Company Act of 1935 (15 U.S.C. 79c) such company is exempt from registration. 

(4) For purposes of this subsection, terms that are defined under the Public Utility Holding Company Act 

of 1935 shall have the meaning given such terms in such Act. 

(5) For purposes of this subsection, the term `vehicular natural gas' means natural or manufactured gas 

that is ultimately used as a fuel in a self-propelled vehicle. 

SEC. 405. PUBLIC INFORMATION PROGRAM. 

The Secretary, in consultation with appropriate Federal agencies and individuals and organizations with 

practical experience in the production and use of alternative fuels and alternative fueled vehicles, shall, 

for the purposes of promoting the use of alternative fuels and alternative fueled vehicles, establish a 

public information program on the benefits and costs of the use of alternative fuels in motor vehicles. 

Within 18 months after the date of enactment of this Act, the Secretary shall produce and make available 

an information package for consumers to assist them in choosing among alternative fuels and alternative 

fueled vehicles. Such information package shall provide relevant and objective information on motor 

vehicle characteristics and fuel characteristics as compared to gasoline, on a life cycle basis, including 

environmental performance, energy efficiency, domestic content, cost, maintenance requirements, 

reliability, and safety. Such information package shall also include information with respect to the 

conversion of conventional motor vehicles to alternative fueled vehicles. The Secretary shall include 

such other information as the Secretary determines is reasonable and necessary to help promote the use 

of alternative fuels in motor vehicles. Such information package shall be updated annually to reflect the 

most recent available information. 

SEC. 406. LABELING REQUIREMENTS.

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(a) ESTABLISHMENT OF REQUIREMENTS- The Federal Trade Commission, in consultation with 

the Secretary, the Administrator of the Environmental Protection Agency, and the Secretary of 

Transportation, shall, within 18 months after the date of enactment of this Act, issue a notice of proposed 

rulemaking for a rule to establish uniform labeling requirements, to the greatest extent practicable, for 

alternative fuels and alternative fueled vehicles, including requirements for appropriate information with 

respect to costs and benefits, so as to reasonably enable the consumer to make choices and comparisons. 

Required labeling under the rule shall be simple and, where appropriate, consolidated with other labels 

providing information to the consumer. In formulating the rule, the Federal Trade Commission shall give 

consideration to the problems associated with developing and publishing useful and timely cost and 

benefit information, taking into account lead time, costs, the frequency of changes in costs and benefits 

that may occur, and other relevant factors. The Commission shall obtain the views of affected industries, 

consumer organizations, Federal and State agencies, and others in formulating the rule. A final rule shall 

be issued within 1 year after the notice of proposed rulemaking is issued. Such rule shall be updated 

periodically to reflect the most recent available information. 

(b) TECHNICAL ASSISTANCE AND COORDINATION- The Secretary shall provide technical 

assistance to the Federal Trade Commission in developing labeling requirements under subsection (a). 

The Secretary shall coordinate activities under this section with activities under section 405. 

SEC. 407. DATA ACQUISITION PROGRAM. 

(a) Not later than one year after the date of enactment of this Act, the Secretary, through the Energy 

Information Administration, and in cooperation with appropriate State, regional, and local authorities, 

shall establish a data collection program to be conducted in at least 5 geographically and climatically 

diverse regions of the United States for the purpose of collecting data which would be useful to persons 

seeking to manufacture, convert, sell, own, or operate alternative fueled vehicles or alternative fueling 

facilities. Such data shall include-- 

(1) identification of the number and types of motor vehicle trips made daily and miles driven per 

trip, including commuting, business, and recreational trips; 

(2) the projections of the Secretary as to the most likely combination of alternative fueled vehicle 

use and other forms of transit, including rail and other forms of mass transit; 

(3) cost, performance, environmental, energy, and safety data on alternative fuels and alternative 

fueled vehicles; and 

(4) other appropriate demographic information and consumer preferences. 

(b) The Secretary shall consult with interested parties, including other appropriate Federal agencies, 

manufacturers, public utilities, owners and operators of fleets of light duty motor vehicles, and State or 

local governmental entities, to determine the types of data to be collected and analyzed under subsection 

(a). 

SEC. 408. FEDERAL ENERGY REGULATORY COMMISSION AUTHORITY TO APPROVE 

RECOVERY OF CERTAIN EXPENSES IN ADVANCE. 

(a) NATURAL GAS MOTOR VEHICLES- The Federal Energy Regulatory Commission may, under 

section 4 of the Natural Gas Act, allow recovery of expenses in advance by natural-gas companies for 

research, development, and demonstration activities by the Gas Research Institute for projects on the use 

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of natural gas, including fuels derived from natural gas, for transportation, and projects on the use of 

natural gas to control pollutants and to control emissions from the combustion of other fuels, if the 

Commission finds that the benefits, including environmental benefits, to existing and future ratepayers 

resulting from such activities exceed all direct costs to existing and future ratepayers. To the maximum 

extent practicable, through the establishment of cofunding requirements applicable to such projects, the 

Commission shall ensure that the costs of such activities shall be provided in part, through contributions 

of cash, personnel, services, equipment, and other resources, by sources other than the recovery of 

expenses pursuant to this section. 

(b) ELECTRIC MOTOR VEHICLES- The Federal Energy Regulatory Commission may, under section 

205 of the Federal Power Act, allow recovery of expenses in advance by electric utilities for research, 

development, and demonstration activities by the Electric Power Research Institute for projects on 

electric motor vehicles, if the Commission finds that the benefits, including environmental benefits, to 

existing and future ratepayers resulting from such activities exceed all direct costs to existing and future 

ratepayers. To the maximum extent practicable, through the establishment of cofunding requirements 

applicable to each project, the costs of such activities shall be provided, in part, through contributions of 

cash, personnel, services, equipment, and other resources, by sources other than the recovery of expenses 

pursuant to this section. 

(c) REPEAL- The second paragraph of the matter under the heading `FEDERAL ENERGY 

REGULATORY COMMISSION, SALARIES AND EXPENSES' in title III of the Energy and Water 

Development Appropriations Act, 1992, is repealed. 

SEC. 409. STATE AND LOCAL INCENTIVES PROGRAMS. 

(a) ESTABLISHMENT OF PROGRAM- (1) The Secretary shall, within one year after the date of 

enactment of this Act, issue regulations establishing guidelines for comprehensive State alternative fuels 

and alternative fueled vehicle incentives and program plans designed to accelerate the introduction and 

use of such fuels and vehicles. Such guideline shall address the development, modification, and 

implementation of such State plans and shall describe those program elements, as described in paragraph 

(3), to be addressed in such plans. 

(2) The Secretary, after consultation with the Secretary of Transportation and the Administrator of the 

Environmental Protection Agency, shall invite the Governor of each State to submit to the Secretary a 

State plan within one year after the effective date of the regulations issued under paragraph (1). Such 

plan shall include-- 

(A) provisions designed to result in scheduled progress toward, and achievement of, the goal of 

introducing substantial numbers of alternative fueled vehicles in such State by the year 2000; and 

(B) a detailed description of the requirements, including the estimated cost of implementation, of 

such plan. 

(3) Each proposed State plan, in order to be eligible for Federal assistance under this section, shall 

describe the manner in which coordination shall be achieved with Federal and local governmental 

entities in implementing such plan, and shall include an examination of-- 

(A) exemption from State sales tax or other State or local taxes or surcharges (other than such 

taxes or surcharges which are dedicated for transportation purposes) with respect to alternative 

fueled vehicles, alternative fuels, or alternative fueling facilities;

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(B) the introduction of alternative fueled vehicles into State-owned or operated motor vehicle 

fleets; 

(C) special parking at public buildings and airport and transportation facilities; 

(D) programs of public education to promote the use of alternative fueled vehicles; 

(E) the treatment of sales of alternative fuels for use in alternative fueled vehicles; 

(F) methods by which State and local governments might facilitate-- 

(i) the availability of alternative fuels; and 

(ii) the ability to recharge electric motor vehicles at public locations; 

(G) allowing public utilities to include in rates the incremental cost of-- 

(i) new alternative fueled vehicles; 

(ii) converting conventional vehicles to operate on alternative fuels; and 

(iii) installing alternative fuel fueling facilities, 

but only to the extent that the inclusion of such costs in rates would not create competitive 

disadvantages for other market participants, and taking into consideration the effect inclusion of 

such costs would have on rates, service, and reliability to other utility customers; 

(H) such other programs and incentives as the State may describe; 

(I) whether accomplishing any of the goals in this subsection would require amendment to State 

law or regulation, including traffic safety prohibitions; 

(J) services provided by municipal, county, and regional transit authorities; and 

(K) effects of such plan on programs authorized by the Intermodal Surface Transportation 

Efficiency Act of 1991 and amendments made by that Act. 

(b) FEDERAL ASSISTANCE TO STATES- (1) Upon request of the Governor of any State with a plan 

approved under this section, the Secretary may provide to such State-- 

(A) information and technical assistance, including model State laws and proposed regulations 

relating to alternative fueled vehicles; 

(B) grants of Federal financial assistance for the purpose of assisting such State in the 

implementation of such plan or any part thereof; and 

(C) grants of Federal financial assistance for the acquisition of alternative fueled vehicles. 

(2) In determining whether to approve a State plan submitted under subsection (a), and in determining 

the amount of Federal financial assistance, if any, to be provided to any State under this subsection, the 

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Secretary shall take into account-- 

(A) the energy-related and environmental-related impacts, on a life cycle basis, of the introduction 

and use of alternative fueled vehicles included in the plan compared to conventional motor 

vehicles; 

(B) the number of alternative fueled vehicles likely to be introduced by the year 2000, as a result 

of successful implementation of the plan; and 

(C) such other factors as the Secretary considers appropriate. 

(3) The Secretary, in consultation with the Administrator of General Services, shall provide assistance to 

States in procuring alternative fueled vehicles, including coordination with Federal procurements of such 

vehicles. 

(4) The Secretary may not approve a State plan submitted under subsection (a) unless the State agrees to 

provide at least 20 percent of the cost of activities for which assistance is provided under paragraph (1). 

(c) GENERAL PROVISIONS- (1) In carrying out this section, the Secretary shall consult with the 

Secretary of Transportation on matters relating to transportation and with other appropriate Federal and 

State departments and agencies. 

(2) The Secretary shall report annually to the President and the Congress, and shall furnish copies of 

such report to the Governor of each State participating in the program, on the operation of the program 

under this section. Such report shall include-- 

(A) an estimate of the number of alternative fueled vehicles in use in each State; 

(B) the degree of each State's participation in the program; 

(C) a description of Federal, State, and local programs undertaken in the various States, whether 

pursuant to a State plan under this section or not, to provide incentives for introduction of 

alternative fueled vehicles; 

(D) an estimate of the energy and environmental benefits of the program; and 

(E) the recommendations of the Secretary, if any, for additional action by the Federal Government.

(d) DEFINITIONS- For the purposes of this section, the following definitions apply: 

(1) GOVERNOR- The term `Governor' means the chief executive of a State. 

(2) STATE- The term `State' means each of the several States, the District of Columbia, the 

Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the 

Commonwealth of the Northern Mariana Islands, and any other Commonwealth, territory, or 

possession of the United States. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for carrying 

out this section, $10,000,000 for each of the 5 fiscal years beginning after the date of enactment of this 

Act. 

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SEC. 410. ALTERNATIVE FUEL BUS PROGRAM. 

(a) COOPERATIVE AGREEMENTS AND JOINT VENTURES- (1) The Secretary of Transportation, 

in consultation with the Secretary, may enter into cooperative agreements and joint ventures proposed by 

any municipal, county, or regional transit authority in an urban area with a population over 100,000 

(according to latest available census information) to demonstrate the feasibility of commercial 

application, including safety of specific vehicle design, of using alternative fuels for urban buses and 

other motor vehicles used for mass transit. 

(2) The cooperative agreements and joint ventures under paragraph (1) may include interested or affected 

private firms willing to provide assistance in cash, or in kind, for any such demonstration. 

(3) Federal assistance provided under cooperative agreements and joint ventures entered into under 

paragraph (1) to demonstrate the feasibility of commercial application of using alternative fuels for urban 

buses shall be in addition to Federal assistance provided under any other law for such purpose. 

(b) LIMITATIONS- (1) The Secretary of Transportation may not enter into cooperative agreement or 

joint venture under subsection (a) with any municipal, county, or regional transit authority, unless such 

government body agrees to provide 20 percent of the costs of such demonstration. 

(2) The Secretary of Transportation may grant such priority under this section to any entity that 

demonstrates that the use of alternative fuels for transportation would have a significant beneficial effect 

on the environment. 

(c) SCHOOL BUSES- The Secretary of Transportation may also provide, in accordance with such rules 

as he may prescribe, financial assistance to any agency, municipality, or political subdivision in an urban 

area referred to in subsection (a), of any State or the District of Columbia for the purpose of meeting the 

incremental costs of school buses that are dedicated vehicles and used regularly for such transportation 

during the school term. Such costs may include the purchase and installation of alternative fuel refueling 

facilities to be used for school bus refueling, and the conversion of school buses to dedicated vehicles. 

The Secretary of Transportation may provide such assistance directly to a person who is a contractor of 

such agency, municipality, or political subdivision, upon the request of the agency, municipality, or 

political subdivision, and who, under such contract, provides for such transportation. Any conversion 

under this subsection shall comply with the warranty and safety requirements for alternative fuel 

conversions contained in section 247 of the Clean Air Act Amendments of 1990. 

(d) FUNDING AUTHORIZATION- There are authorized to be appropriated not more than $30,000,000 

for each of the fiscal years 1993, 1994, and 1995 for purposes of this section. 

SEC. 411. CERTIFICATION OF TRAINING PROGRAMS. 

The Secretary shall ensure that the Federal Government establishes and carries out a program for the 

certification of training programs for technicians who are responsible for motor vehicle installation of 

equipment that converts gasoline or diesel-fueled motor vehicles into dedicated vehicles or dual fueled 

vehicles, and for the maintenance of such converted motor vehicles. A training program shall not be 

certified under the program established under this section unless it provides technicians with instruction 

on the proper and safe installation procedures and techniques, adherence to specifications (including 

original equipment manufacturer specifications), motor vehicle operating procedures, emissions testing, 

and other appropriate mechanical concerns applicable to these motor vehicle conversions. The Secretary 

shall ensure that, in the development of the program required under this section, original equipment 

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manufacturers, fuel suppliers, companies that convert conventional vehicles to use alternative fuels, and 

other affected persons are consulted. 

SEC. 412. ALTERNATIVE FUEL USE IN NONROAD VEHICLES AND ENGINES. 

(a) NONROAD VEHICLES AND ENGINES- (1) The Secretary shall conduct a study to determine 

whether the use of alternative fuels in nonroad vehicles and engines would contribute substantially to 

reduced reliance on imported energy sources. Such study shall be completed, and the results thereof 

reported to Congress, within 2 years after the date of enactment of this Act. 

(2) The study shall assess the potential of nonroad vehicles and engines to run on alternative fuels. 

Taking into account the nonroad vehicles and engines for which running on alternative fuels is feasible, 

the study shall assess the potential reduction in reliance on foreign energy sources that could be achieved 

if such vehicles were to run on alternative fuels. 

(3) The report required under paragraph (1) may include the Secretary's recommendations for 

encouraging or requiring nonroad vehicles and engines which can feasibly be run on alternative fuels, to 

utilize such alternative fuels. 

(b) DEFINITION OF NONROAD VEHICLES AND ENGINES- Nonroad vehicles and engines, for 

purposes of this section, shall include nonroad vehicles and engines used for surface transportation or 

principally for industrial or commercial purposes, vehicles used for rail transportation, vehicles used at 

airports, vehicles or engines used for marine purposes, and other vehicles or engines at the discretion of 

the Secretary. 

(c) DESIGNATION- Upon completion of the study required pursuant to subsection (a) of this section, 

the Secretary may designate such vehicles and engines as qualifying for loans pursuant to section 414 of 

this title. 

SEC. 413. REPORTS TO CONGRESS. 

Within 6 months after the date of enactment of this Act, the Secretary shall-- 

(1) identify and report to Congress on purchasing policies of the Federal Government which 

inhibit or prevent the purchase by the Federal Government of alternative fueled vehicles; and 

(2) report to Congress on Federal, State, and local traffic control measures and policies and how 

the use of alternative fueled vehicles could be promoted by granting such vehicles exemptions or 

preferential treatment under such measures. 

SEC. 414. LOW INTEREST LOAN PROGRAM. 

(a) ESTABLISHMENT- Within 1 year after the date of enactment of this Act, the Secretary shall 

establish a program for making low interest loans, giving preference to small businesses that own or 

operate fleets, for-- 

(1) the conversion of motor vehicles to operation on alternative fuels; 

(2) covering the incremental costs of the purchase of motor vehicles which operate on alternative 

fuels, when compared with purchase costs of comparable conventionally fueled motor vehicles; or

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(3) covering the incremental costs of purchase of non-road vehicles and engines designated by the 

Secretary pursuant to section 412(c) of this title. 

(b) LOAN TERMS- The Secretary, to the extent practicable, shall establish reasonable terms for loans 

made under this subsection, with preference given to repayment schedules that enable such loans to be 

repaid by the borrower from the cost differential between gasoline and the alternative fuel on which the 

motor vehicle operates. 

(c) CRITERIA- In deciding to whom loans shall be made under this subsection, the Secretary shall 

consider-- 

(1) the financial need of the applicant; 

(2) the goal of assisting the greatest number of applicants; and 

(3) the ability of an applicant to repay the loan, taking into account the fuel cost savings likely to 

accrue to the applicant. 

(d) PRIORITIES- Priority shall be given under this section to fleets where the use of alternative fuels 

would have a significant beneficial effect on energy security and the environment. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section, $25,000,000 for each of the fiscal years 1993, 1994, and 1995. 

TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, AND 

ALTERNATIVE FUELED PRIVATE VEHICLES 

SEC. 501. MANDATE FOR ALTERNATIVE FUEL PROVIDERS. 

(a) IN GENERAL- (1) The Secretary shall, before January 1, 1994, issue regulations requiring that of the 

new light duty motor vehicles acquired by a covered person described in paragraph (2), the following 

percentages shall be alternative fueled vehicles for the following model years: 

(A) 30 percent for model year 1996. 

(B) 50 percent for model year 1997. 

(C) 70 percent for model year 1998. 

(D) 90 percent for model year 1999 and thereafter. 

(2) For purposes of this section, a person referred to in paragraph (1) is-- 

(A) a covered person whose principal business is producing, storing, refining, processing, 

transporting, distributing, importing, or selling at wholesale or retail any alternative fuel other than 

electricity; 

(B) a non-Federal covered person whose principal business is generating, transmitting, importing, 

or selling at wholesale or retail electricity; or

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(C) a covered person-- 

(i) who produces, imports, or produces and imports in combination, an average of 50,000 

barrels per day or more of petroleum; and 

(ii) a substantial portion of whose business is producing alternative fuels. 

(3)(A) In the case of a covered person described in paragraph (2) with more than one affiliate, division, 

or other business unit, only an affiliate, division, or business unit which is substantially engaged in the 

alternative fuels business (as determined by the Secretary by rule) shall be subject to this subsection. 

(B) No covered person or affiliate, division, or other business unit of such person whose principal 

business is-- 

(i) transforming alternative fuels into a product that is not an alternative fuel; or 

(ii) consuming alternative fuels as a feedstock or fuel in the manufacture of a product that is not an 

alternative fuel, 

shall be subject to this subsection. 

(4) The vehicles purchased pursuant to this section shall be operated solely on alternative fuels except 

when operating in an area where the appropriate alternative fuel is unavailable. 

(5) Regulations issued under paragraph (1) shall provide for the prompt exemption by the Secretary, 

through a simple and reasonable process, from the requirements of paragraph (1) of any covered person, 

in whole or in part, if such person demonstrates to the satisfaction of the Secretary that-- 

(A) alternative fueled vehicles that meet the normal requirements and practices of the principal 

business of that person are not reasonably available for acquisition; or 

(B) alternative fuels that meet the normal requirements and practices of the principal business of 

that person are not available in the area in which the vehicles are to be operated. 

(b) REVISIONS AND EXTENSIONS- With respect to model years 1997 and thereafter, the Secretary 

may-- 

(1) revise the percentage requirements under subsection (a)(1) downward, except that under no 

circumstances shall the percentage requirement for a model year be less than 20 percent; and 

(2) extend the time under subsection (a)(1) for up to 2 model years. 

(c) OPTION FOR ELECTRIC UTILITIES- The Secretary shall, within 1 year after the date of 

enactment of this Act, issue regulations requiring that, in the case of a covered person whose principal 

business is generating, transmitting, importing, or selling at wholesale or retail electricity, the 

requirements of subsection (a)(1) shall not apply until after December 31, 1997, with respect to electric 

motor vehicles. Any covered person described in this subsection which plans to acquire electric motor 

vehicles to comply with the requirements of this section shall so notify the Secretary before January 1, 

1996. 

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(d) REPORT TO CONGRESS- The Secretary shall, before January 1, 1998, submit a report to the 

Congress providing detailed information on actions taken to carry out this section, and the progress made 

and problems encountered thereunder. 

SEC. 502. REPLACEMENT FUEL SUPPLY AND DEMAND PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM- The Secretary shall establish a program to promote the 

development and use in light duty motor vehicles of domestic replacement fuels. Such program shall 

promote the replacement of petroleum motor fuels with replacement fuels to the maximum extent 

practicable. Such program shall, to the extent practicable, ensure the availability of those replacement 

fuels that will have the greatest impact in reducing oil imports, improving the health of our Nation's 

economy and reducing greenhouse gas emissions. 

(b) DEVELOPMENT PLAN AND PRODUCTION GOALS- Under the program established under 

subsection (a), the Secretary, before October 1, 1993, in consultation with the Administrator, the 

Secretary of Transportation, the Secretary of Agriculture, the Secretary of Commerce, and the heads of 

other appropriate agencies, shall review appropriate information and-- 

(1) estimate the domestic and nondomestic production capacity for replacement fuels and 

alternative fueled vehicles needed to implement this section; 

(2) determine the technical and economic feasibility of achieving the goals of producing sufficient 

replacement fuels to replace, on an energy equivalent basis-- 

(A) at least 10 percent by the year 2000; and 

(B) at least 30 percent by the year 2010, 

of the projected consumption of motor fuel in the United States for each such year, with at least 

one half of such replacement fuels being domestic fuels; 

(3) determine the most suitable means and methods of developing and encouraging the production, 

distribution, and use of replacement fuels and alternative fueled vehicles in a manner that would 

meet the program goals described in subsection (a); 

(4) identify ways to encourage the development of reliable replacement fuels and alternative fueled 

vehicle industries in the United States, and the technical, economic, and institutional barriers to 

such development; and 

(5) determine the greenhouse gas emission implications of increasing the use of replacement fuels, 

including an estimate of the maximum feasible reduction in such emissions from the use of 

replacement fuels. 

The Secretary shall publish in the Federal Register the results of actions taken under this subsection, and 

provide for an opportunity for public comment. 

SEC. 503. REPLACEMENT FUEL DEMAND ESTIMATES AND SUPPLY INFORMATION. 

(a) ESTIMATES- Not later than October 1, 1993, and annually thereafter, the Secretary, in consultation 

with the Administrator, the Secretary of Transportation, and other appropriate State and Federal officials, 

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shall estimate for the following calendar year-- 

(1) the number of each type of alternative fueled vehicle likely to be in use in the United States; 

(2) the probable geographic distribution of such vehicles; 

(3) the amount and distribution of each type of replacement fuel; and 

(4) the greenhouse gas emissions likely to result from replacement fuel use. 

(b) INFORMATION- Beginning on October 1, 1994, the Secretary shall annually require-- 

(1) fuel suppliers to report to the Secretary on the amount of each type of replacement fuel that 

such supplier-- 

(A) has supplied in the previous calendar year; and 

(B) plans to supply for the following calendar year; 

(2) suppliers of alternative fueled vehicles to report to the Secretary on the number of each type of 

alternative fueled vehicle that such supplier-- 

(A) has made available in the previous calendar year; and 

(B) plans to make available for the following calendar year; and 

(3) such fuel suppliers to provide the Secretary information necessary to determine the greenhouse 

gas emissions from the replacement fuels used, taking into account the entire fuel cycle. 

(c) PROTECTION OF INFORMATION- Information provided to the Secretary under subsection (b) 

shall be subject to applicable provisions of law protecting the confidentiality of trade secrets and 

business and financial information, including section 1905 of title 18, United States Code. 

SEC. 504. MODIFICATION OF GOALS; ADDITIONAL RULEMAKING AUTHORITY. 

(a) EXAMINATION OF GOALS- Within 3 years after the date of enactment of this Act, and 

periodically thereafter, the Secretary shall examine the goals established under section 502(b)(2), in the 

context of the program goals stated under section 502(a), to determine if the goals under section 502(b)

(2), including the applicable percentage requirements and dates, should be modified under this section. 

The Secretary shall publish in the Federal Register the results of each examination under this subsection 

and provide an opportunity for public comment. 

(b) MODIFICATION OF GOALS- If, after analysis of information obtained in connection with carrying 

out subsection (a) or section 502, or other information, and taking into account the determination of 

technical and economic feasibility made under section 502(b)(2), the Secretary determines that goals 

described in section 502(b)(2), including the percentage requirements or dates, are not achievable, the 

Secretary, in consultation with appropriate Federal agencies, shall, by rule, establish goals that are 

achievable, for purposes of this title. The modification of goals under this section may include changing 

the target dates specified in section 502(b)(2).

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(c) ADDITIONAL RULEMAKING AUTHORITY- If the Secretary determines that the achievement of 

goals described in section 502(b)(2) would result in a significant and correctable failure to meet the 

program goals described in section 502(a), the Secretary shall issue such additional regulations as are 

necessary to remedy such failure. The Secretary shall have no authority under this Act to mandate the 

production of alternative fueled vehicles or to specify, as applicable, the models, lines, or types of, or 

marketing or pricing practices, policies, or strategies for, vehicles subject to this Act. Nothing in this Act 

shall be construed to give the Secretary authority to mandate marketing or pricing practices, policies, or 

strategies for alternative fuels or to mandate the production or delivery of such fuels. 

SEC. 505. VOLUNTARY SUPPLY COMMITMENTS. 

The Secretary shall, by January 1, 1994, and thereafter, undertake to obtain voluntary commitments in 

geographically diverse regions of the United States-- 

(1) from fuel suppliers to make available to the public replacement fuels, including providing for 

the construction or availability of related fuel delivery systems; 

(2) from owners of 10 or more motor vehicles to acquire and use alternative fueled vehicles and 

alternative fuels; and 

(3) from suppliers of alternative fueled vehicles to make available to the public alternative fueled 

vehicles and to ensure the availability of necessary related services, 

in sufficient volume to achieve the goals described in section 502(b)(2) or as modified under section 504, 

and in order to meet any fleet requirement program established by rule under this title. The Secretary 

shall periodically report to the Congress on the results of efforts under this section. All voluntary 

commitments obtained pursuant to this section shall be available to the public, except to the extent 

provided in applicable provisions of law protecting the confidentiality of trade secrets and business and 

financial information, including section 1905 of title 18, United States Code. 

SEC. 506. TECHNICAL AND POLICY ANALYSIS. 

(a) REQUIREMENT- Not later than March 1, 1995, and March 1, 1997, the Secretary shall prepare and 

transmit to the President and the Congress a technical and policy analysis under this section. The 

Secretary shall utilize the analytical capability and authorities of the Energy Information Administration 

and such other offices of the Department of Energy as the Secretary considers appropriate. 

(b) PURPOSES- The technical and policy analysis prepared under this section shall be based on the best 

available data and information obtainable by the Secretary under section 503, or otherwise, and on 

experience under this title and other provisions of law in the development and use of replacement fuels 

and alternative fueled vehicles, and shall evaluate-- 

(1) progress made in achieving the goals described in section 502(b)(2), as modified under section 

504; 

(2) the actual and potential role of replacement fuels and alternative fueled vehicles in significantly 

reducing United States reliance on imported oil to the extent of the goals referred to in paragraph 

(1); and 

(3) the actual and potential availability of various domestic replacement fuels and dedicated 

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vehicles and dual fueled vehicles. 

(c) PUBLICATION- The Secretary shall publish a proposed version of each analysis under this section 

in the Federal Register for public comment before transmittal to the President and the Congress. Public 

comment received in response to such publication shall be preserved for use in rulemaking proceedings 

under section 507. 

SEC. 507. FLEET REQUIREMENT PROGRAM. 

(a) FLEET PROGRAM PURCHASE GOALS- (1) Except as provided in paragraph (2), the following 

percentages of new light duty motor vehicles acquired in each model year for a fleet, other than a Federal 

fleet, State fleet, or fleet owned, operated, leased, or otherwise controlled by a covered person subject to 

section 501, shall be alternative fueled vehicles: 

(A) 20 percent of the motor vehicles acquired in model years 1999, 2000, and 2001; 

(B) 30 percent of the motor vehicles acquired in model year 2002; 

(C) 40 percent of the motor vehicles acquired in model year 2003; 

(D) 50 percent of the motor vehicles acquired in model year 2004; 

(E) 60 percent of the motor vehicles acquired in model year 2005; and 

(F) 70 percent of the motor vehicles acquired in model year 2006 and thereafter. 

(2) The Secretary may not establish percentage requirements higher than those described in paragraph 

(1). The Secretary may, if appropriate, and pursuant to a rule under subsection (b), establish a lesser 

percentage requirement for any model year. The Secretary may, by rule, establish a date later than 1998 

(or model year 1999) for initiating the fleet requirements under paragraph (1). 

(3) The Secretary shall publish an advance notice of proposed rulemaking for the purpose of-- 

(A) evaluating the progress toward achieving the goals of replacement fuel use described in 

section 502(b)(2), as modified under section 504; 

(B) identifying the problems associated with achieving those goals; 

(C) assessing the adequacy and practicability of those goals; and 

(D) considering all actions needed to achieve those goals. 

The Secretary shall provide for at least 3 regional hearings on the advance notice of proposed 

rulemaking, with respect to which official transcripts shall be maintained. The comment period in 

connection with such advance notice of proposed rulemaking shall be completed within 7 months after 

publication of the advance notice. 

(4) After the completion of such advance notice of proposed rulemaking, the Secretary shall publish in 

the Federal Register a proposed rule for the rule required under subsection (b), and shall provide for a 

public comment period, with hearings, of not less than 90 days.

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(b) EARLY RULEMAKING- (1) Not earlier than 1 year after the date of the enactment of this Act, and 

after carrying out the requirements of subsection (a), the Secretary shall initiate a rulemaking to 

determine whether a fleet requirement program to begin in calendar year 1998 (when model year 1999 

begins), or such other later date as he may select pursuant to subsection (a), is necessary under this 

section. Such rule, consistent with subsection (a)(1), shall establish the annual applicable model year 

percentage. No rule under this subsection may be promulgated after December 15, 1996, and be 

enforceable. A fleet requirement program shall be considered necessary and a rule therefor shall be 

promulgated if the Secretary finds that-- 

(A) the goal of replacement fuel use described in section 502(b)(2)(B), as modified under section 

504, is not expected to be actually achieved by 2010, or such other date as is established under 

section 504, by voluntary means or pursuant to this title or any other law without such a fleet 

requirement program, taking into consideration the status of the achievement of the interim goal 

described in section 502(b)(2)(A), as modified under section 504; 

(B) such goal is practicable and actually achievable within periods specified in section 502(b)(2), 

as modified under section 504, through implementation of such a fleet requirement program in 

combination with voluntary means and the application of other programs relevant to achieving 

such goals; and 

(C) by 1998 (when model year 1999 begins) or the date specified by the Secretary in such rule for 

initiating a fleet requirement program-- 

(i) there exists sufficient evidence to ensure that the fuel and the needed infrastructure, 

including the supply and deliverability systems, will be installed and located at convenient 

places in the fleet areas subject to the rule and will be fully operational when the rule is 

effective to offer a reliable and timely supply of the applicable alternative fuel at reasonable 

costs (as compared to conventional fuels) to meet the fleet requirement program, as 

demonstrated through use of the provisions of section 505(1) of this title regarding voluntary 

commitments or other adequate, reliable, and convincing forms of agreements, 

arrangements, or representations that such fuels and infrastructure are in existence or will 

exist when the rule is effective and will be expanded as the percentages increase annually; 

(ii) there will be a sufficient number of new alternative fueled vehicles from original 

equipment manufacturers that comply with all applicable requirements of the Clean Air Act 

and the National Traffic and Motor Vehicle Safety Act of 1966; 

(iii) such new vehicles will meet the applicable non-Federal and non-State fleet performance 

requirements of such fleets (including range, passenger or cargo-carrying capacity, 

reliability, refueling capability, vehicle mix, and economical operation and maintenance); 

and 

(iv) establishment of a fleet requirement program by rule under this subsection will not 

result in unfair competitive advantages or disadvantages, or result in undue economic 

hardship, to the affected fleets. 

(2) The Secretary shall not promulgate a rule under this subsection if he is unable to make affirmative 

findings in the case of each of the subparagraphs under paragraph (1), and each of the clauses under 

subparagraph (C) of paragraph (1). 

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(3) If the Secretary does not determine that such program is necessary under this subsection, the 

provisions of subsection (e) shall apply to the consideration in the future of any fleet requirement 

program. The record of this rulemaking, including the Secretary's findings, shall be incorporated into a 

rulemaking under that subsection. If the Secretary determines under this subsection that such program is 

necessary, the Secretary shall not initiate the later rulemaking under subsection (e). 

(c) ADVANCE NOTICE OF PROPOSED RULEMAKING- Not later than April 1, 1998, the Secretary 

shall publish an advance notice of proposed rulemaking for the purpose of-- 

(1) evaluating the progress toward achieving the goals of replacement fuel use described in section 

502(b)(2), as modified under section 504; 

(2) identifying the problems associated with achieving those goals; 

(3) assessing the adequacy and practicability of those goals; and 

(4) considering all actions needed to achieve those goals. 

The Secretary shall provide for at least 3 regional hearings on the advance notice of proposed 

rulemaking, with respect to which official transcripts shall be maintained. The comment period in 

connection with such advance notice of proposed rulemaking shall be completed within 7 months after 

publication of the advance notice. 

(d) PROPOSED RULE- Before May 1, 1999, the Secretary shall publish in the Federal Register a 

proposed rule for the rule required under subsection (g), and shall provide for a public comment period, 

with hearings, of not less than 90 days. 

(e) DETERMINATION- (1) Not later than January 1, 2000, the Secretary shall, through the rule required 

under subsection (g), determine whether a fleet requirement program is necessary under this section. 

Such a program shall be considered necessary and a rule therefor shall be promulgated if the Secretary 

finds that-- 

(A) the goal of replacement fuel use described in section 502(b)(2)(B), as modified under section 

504, is not expected to be actually achieved by 2010, or such other date as is established under 

section 504, by voluntary means or pursuant to this title or any other law without such a fleet 

requirement program, taking into consideration the status of the achievement of the interim goal 

described in section 502(b)(2)(A), as modified under section 504; and 

(B) such goal is practicable and actually achievable within periods specified in section 502(b)(2), 

as modified under section 504, through implementation of such a fleet requirement program in 

combination with voluntary means and the application of other programs relevant to achieving 

such goals. 

(2) The rule under subsection (b) or (g) shall also modify the goal described in section 502(b)(2)(B) and 

establish a revised goal pursuant to section 504 if the Secretary determines, based on the proceeding 

required under subsection (a) or (c), that the goal in effect at the time of that proceeding is inadequate or 

impracticable, and not expected to be achievable. Such goal as modified and established shall be 

applicable in making the findings described in paragraph (1). If the Secretary modifies the goal under 

this paragraph, he may also modify the percentages stated in subsection (a)(1) or (g)(1) and the minimum 

percentage stated in subsection (a)(2) or (g)(2) shall be not less than 10 percent. 

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(f) EXPLANATION OF DETERMINATION THAT FLEET REQUIREMENT PROGRAM IS NOT 

NECESSARY- If the Secretary determines, based on findings under subsection (b) or (e), that a fleet 

requirement program under this section is not necessary, the Secretary shall-- 

(1) by December 15, 1996, with respect to a rulemaking under subsection (b); and 

(2) by January 1, 2000, with respect to a rulemaking under subsection (e), 

publish such determination in the Federal Register as a final agency action, including an explanation of 

the findings on which such determination is made and the basis for the determination. 

(g) FLEET REQUIREMENT PROGRAM- (1) If the Secretary determines under subsection (e) that a 

fleet requirement program is necessary, the Secretary shall, by January 1, 2000, by rule require that, 

except as provided in paragraph (2), of the total number of new light duty motor vehicles acquired for a 

fleet, other than a Federal fleet, State fleet, or fleet owned, operated, leased, or otherwise controlled by a 

covered person under section 501-- 

(A) 20 percent of the motor vehicles acquired in model year 2002; 

(B) 40 percent of the motor vehicles acquired in model year 2003; 

(C) 60 percent of the motor vehicles acquired in model year 2004; and 

(D) 70 percent of the motor vehicles acquired in model year 2005 and thereafter, 

shall be alternative fueled vehicles. 

(2) The Secretary may not establish percentage requirements higher than those described in paragraph 

(1). The Secretary may, if appropriate, and pursuant to a rule under subsection (g), establish a lesser 

percentage requirement for any model year. The Secretary may, by rule, establish a date later than 2002 

(when model year 2003 begins) for initiating the fleet requirements under paragraph (1). 

(3) Nothing in this title shall be construed as requiring any fleet to acquire alternative fueled vehicles or 

alternative fuels that do not meet the normal business requirements and practices and needs of that fleet. 

(4) A vehicle operating only on gasoline that complies with applicable requirements of the Clean Air Act 

shall not be considered an alternative fueled vehicle under subsection (b) or this subsection, except that 

the Secretary, as part of the rule under subsection (b) or this subsection, may determine that such vehicle 

should be treated as an alternative fueled vehicle for purposes of this section, for fleets subject to part C 

of title II of the Clean Air Act, taking into consideration the impact on energy security and the goals 

stated in section 502(a). 

(h) EXTENSION OF DEADLINES- The Secretary may, by notice published in the Federal Register, 

extend the deadlines established under subsections (e), (f)(2), and (g) for an additional 90 days if the 

Secretary is unable to meet such deadlines. Such extension shall not be reviewable. 

(i) EXEMPTIONS- (1) A rule issued under subsection (b), (g), or (o) shall provide for the prompt 

exemption by the Secretary, through a simple and reasonable process, of any fleet from the requirements 

of subsection (b), (g), or (o), in whole or in part, if it is demonstrated to the satisfaction of the Secretary 

that-- 

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(A) alternative fueled vehicles that meet the normal requirements and practices of the principal 

business of the fleet owner are not reasonably available for acquisition; 

(B) alternative fuels that meet the normal requirements and practices of the principal business of 

the fleet owner are not available in the area in which the vehicles are to be operated; or 

(C) in the case of State and local government entities, the application of such requirements would 

pose an unreasonable financial hardship. 

(2) In the case of private fleets, if the motor vehicles, when under normal operations, are garaged at 

personal residences at night, such motor vehicles shall be exempt from the requirements of subsections 

(b) and (g). 

(j) CONVERSIONS- Nothing in this title or the amendments made by this title shall require a fleet 

owner to acquire conversion vehicles. 

(k) INCLUSION OF LAW ENFORCEMENT VEHICLES AND URBAN BUSES- (1) If the Secretary 

determines, by rule, that the inclusion of fleets of law enforcement motor vehicles in the fleet 

requirement program established under subsection (g) would contribute to achieving the goal described 

in section 502(b)(2)(B), as modified under section 504, and the Secretary finds that such inclusion would 

not hinder the use of the motor vehicles for law enforcement purposes, the Secretary may include such 

fleets in such program. The Secretary may only initiate one rulemaking under this paragraph. 

(2) If the Secretary determines, by rule, that the inclusion of new urban buses, as defined by the 

Administrator under title II of the Clean Air Act, in a fleet requirement program established under 

subsection (g) would contribute to achieving the goal described in section 502(b)(2)(B), as modified 

under section 504, the Secretary may include such urban buses in such program, if the Secretary finds 

that such application will be consistent with energy security goals and the needs and objectives of 

encouraging and facilitating the greater use of such urban buses by the public, taking into consideration 

the impact of such application on public transit entities. The Secretary may only initiate one rulemaking 

under this paragraph. 

(3) Rulemakings under paragraph (1) or (2) shall be separate from a rulemaking under subsection (g), but 

may not occur unless a rulemaking is carried out under subsection (g). 

(l) CONSIDERATION OF FACTORS- In carrying out this section, the Secretary shall take into 

consideration energy security, costs, safety, lead time requirements, vehicle miles traveled annually, 

effect on greenhouse gases, technological feasibility, energy requirements, economic impacts, including 

impacts on workers and the impact on consumers (including users of the alternative fuel for purposes 

such as for residences, agriculture, process use, and non-fuel purposes) and fleets, the availability of 

alternative fuels and alternative fueled vehicles, and other relevant factors. 

(m) CONSULTATION AND PARTICIPATION OF OTHER FEDERAL AGENCIES- In carrying out 

this section and section 506, the Secretary shall consult with the Secretary of Transportation, the 

Administrator, and other appropriate Federal agencies. The Secretary shall provide for the participation 

of the Secretary of Transportation and the Administrator in the development and issuance of the rule 

under this section, including the public process concerning such rule. 

(n) PETITIONS- As part of the rule promulgated either pursuant to subsection (b) or (g) of this section, 

the Secretary shall establish procedures for any fleet owner or operator or motor vehicle manufacturer to 

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request that the Secretary modify or suspend a fleet requirement program established under either 

subsection nationally, by region, or in an applicable fleet area because, as demonstrated by the petitioner, 

the infrastructure or fuel supply or distribution system for an applicable alternative fuel is inadequate to 

meet the needs of a fleet. In the event that the Secretary determines that a modification or suspension of 

the fleet requirement program on a regional basis would detract from the nationwide character of any 

fleet requirement program established by rule or would sufficiently diminish the economies of scale for 

the production of alternative fueled vehicles or alternative fuels and thereafter the practicability and 

effectiveness of such program, the Secretary may only modify or suspend the program nationally. The 

procedures shall include provisions for notice and public hearings. The Secretary shall deny or grant the 

petition within 180 days after filing. 

(o) MANDATORY STATE FLEET PROGRAMS- (1) Pursuant to a rule promulgated by the Secretary, 

beginning in calendar year 1995 (when model year 1996 begins), the following percentages of new light 

duty motor vehicles acquired annually for State government fleets, including agencies thereof, but not 

municipal fleets, shall be alternative fueled vehicles: 

(A) 10 percent of the motor vehicles acquired in model year 1996; 

(B) 15 percent of the motor vehicles acquired in model year 1997; 

(C) 25 percent of the motor vehicles acquired in model year 1998; 

(D) 50 percent of the motor vehicles acquired in model year 1999; 

(E) 75 percent of the motor vehicles acquired in model year 2000 and thereafter. 

(2)(A) The Secretary shall within 18 months after the date of the enactment of this Act promulgate a rule 

providing that a State may submit a plan within 12 months after such promulgation containing a light 

duty alternative fueled vehicle plan for State fleets to meet the annual percentages established under 

paragraph (1) for the acquisition of light duty motor vehicles. The plan shall provide for the voluntary 

conversion or acquisition or combination thereof, beyond any acquisition required by this title, of such 

motor vehicles by State, local, or private fleets, in numbers greater than or equal to the number of State 

alternative fueled vehicles required pursuant to paragraph (1). 

(B) The plan, if approved by the Secretary, would be in lieu of the State meeting such annual percentages 

solely through purchases of new State-owned vehicles. All conversions or acquisitions or combinations 

thereof of any alternative fueled vehicles under the plan must be voluntary and must conform with the 

requirements of section 247 of the Clean Air Act and must comply with applicable safety requirements. 

The Secretary of Transportation shall within 3 years after enactment promulgate rules setting forth safety 

standards in accordance with the National Traffic and Motor Vehicle Safety Act of 1966 applicable to all 

conversions. 

SEC. 508. CREDITS. 

(a) IN GENERAL- The Secretary shall allocate a credit to a fleet or covered person that is required to 

acquire an alternative fueled vehicle under this title, if that fleet or person acquires an alternative fueled 

vehicle in excess of the number that fleet or person is required to acquire under this title or acquires an 

alternative fueled vehicle before the date that fleet or person is required to acquire an alternative fueled 

vehicle under such title. 

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(b) ALLOCATION- In allocating credits under subsection (a), the Secretary shall allocate one credit for 

each alternative fueled vehicle the fleet or covered person acquires that exceeds the number of alternative 

fueled vehicles that fleet or person is required to acquire under this title or that is acquired before the 

date that fleet or person is required to acquire an alternative fueled vehicle under such title. In the event 

that a vehicle is acquired before the date otherwise required, the Secretary shall allocate one credit per 

vehicle for each year the vehicle is acquired before the required date. The credit shall be allocated for the 

same type vehicle as the excess vehicle or earlier acquired vehicle. 

(c) USE OF CREDITS- At the request of a fleet or covered person allocated a credit under this section, 

the Secretary shall treat the credit as the acquisition of one alternative fueled vehicle of the type for 

which the credit is allocated in the year designated by that fleet or person when determining whether that 

fleet or person has complied with this title in the year designated. A credit may be counted toward 

compliance for only one year. 

(d) TRANSFERABILITY- A fleet or covered person allocated a credit under this section or to whom a 

credit is transferred under this section, may transfer freely the credit to another fleet or person who is 

required to comply with this title. At the request of the fleet or person to whom a credit is transferred, the 

Secretary shall treat the transferred credit as the acquisition of one alternative fueled vehicle of the type 

for which the credit is allocated in the year designated by the fleet or person to whom the credit is 

transferred when determining whether that fleet or person has complied with this title in the year 

designated. A transferred credit may be counted toward compliance for only one year. In the case of the 

alternative fuel provider program under section 501, a transferred credit may be counted toward 

compliance only if the requirement of section 501(a)(4) is met. 

SEC. 509. SECRETARY'S RECOMMENDATIONS TO CONGRESS. 

(a) RECOMMENDATIONS TO REQUIRE AVAILABILITY OR ACQUISITION- If the Secretary 

determines, under section 507(f), that a fleet requirement program under section 507 is not necessary, the 

Secretary shall so notify the Congress. If the Secretary so notifies the Congress, the Secretary shall, 

within 2 years after such notification and by rule, prepare and submit to the Congress recommendations 

for requirements or incentives for-- 

(1) fuel suppliers to make available to the public replacement fuels, including providing for the 

construction or availability of related fuel delivery systems; 

(2) suppliers of alternative fueled vehicles to make available to the public alternative fueled 

vehicles and to ensure the availability of necessary related services; and 

(3) motor vehicle drivers to use replacement fuels, 

to the extent necessary to achieve such goals of replacement fuel use and to ensure that the availability of

alternative fuels and of alternative fueled vehicles are consistent with each other. 

(b) FAIR AND EQUITABLE APPLICATION- In carrying out this section, the Secretary shall 

recommend the imposition of requirements proportionately on all appropriate fuel suppliers and 

purchasers of motor fuels and suppliers and purchasers of motor vehicles in a fair and equitable manner. 

SEC. 510. EFFECT ON OTHER LAWS. 

(a) IN GENERAL- Nothing in this Act or the amendments made by this Act shall be construed to alter, 

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affect, or modify the provisions of the Clean Air Act, or regulations issued thereunder. 

(b) COMPLIANCE BY ALTERNATIVE FUELED VEHICLES- Alternative fueled vehicles, whether 

dedicated vehicles or dual fueled vehicles, and the alternative fuels for operating such vehicles, shall 

comply with requirements of the Clean Air Act applicable to such vehicles and fuels. 

SEC. 511. PROHIBITED ACTS. 

It shall be unlawful for any person to violate any provision of section 501, 503(b), or 507, or any 

regulation issued under such sections. 

SEC. 512. ENFORCEMENT. 

(a) Whoever violates section 511 shall be subject to a civil penalty of not more than $5,000 for each 

violation. 

(b) Whoever willfully violates section 511 shall be fined not more than $10,000 for each violation. 

(c) Any person who knowingly and willfully violates section 511 after having been subjected to a civil 

penalty for a prior violation of section 511 shall be fined not more than $50,000. 

SEC. 513. POWERS OF THE SECRETARY. 

For the purpose of carrying out title III, title IV, this title, and title VI, the Secretary, or the duly 

designated agent of the Secretary, may hold such hearings, take such testimony, sit and act at such times 

and places, administer such oaths, and require, by subpena, the attendance and testimony of such 

witnesses and the production of such books, papers, correspondence, memorandums, contracts, 

agreements, or other records as the Secretary of Transportation is authorized to do under section 505(b)

(1) of the Motor Vehicle Information and Cost Savings Act (15 U.S.C. 2005(b)(1)). 

SEC. 514. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for carrying out this title $10,000,000 for each 

of the fiscal years 1993 through 1997, and such sums as may be necessary for fiscal years 1998 through 

2000. 

TITLE VI--ELECTRIC MOTOR VEHICLES 

SEC. 601. DEFINITIONS. 

For the purposes of this title-- 

(1) the term `antitrust laws' means the Acts set forth in section 1 of the Clayton Act (15 U.S.C. 12);

(2) the term `associated equipment' means equipment necessary for the regeneration, refueling, or 

recharging of batteries or other forms of electric energy used to power an electric motor vehicle 

and, in the case of electric-hybrid vehicles, such term includes nonpetroleum-related equipment 

necessary for, and solely related to, the demonstration of such vehicles;

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(3) the term `discount payment' means the amount determined pursuant to section 613 of this title; 

(4) the term `electric motor vehicle' means a motor vehicle primarily powered by an electric motor 

that draws current from rechargeable storage batteries, fuel cells, photovoltaic arrays, or other 

sources of electric current and may include an electric-hybrid vehicle; 

(5) the term `electric-hybrid vehicle' means a vehicle primarily powered by an electric motor that 

draws current from rechargeable storage batteries, fuel cells, or other source of electric current and 

also relies on a non-electric source of power; 

(6) the term `eligible metropolitan area' means any Metropolitan Area (as such term is defined by 

the Office of Management and Budget pursuant to section 3504 of title 44, United States Code) 

with a 1980 population of 250,000 or more that has been designated by a proposer and the 

Secretary for a demonstration project under this title, except that the Secretary may designate an 

area with a 1990 population of 50,000 or more as an eligible metropolitan area; 

(7) the term `infrastructure and support systems' includes support and maintenance services and 

facilities, electricity delivery mechanisms and methods, regulatory treatment of investment in 

electric motor vehicles and associated equipment, consumer education programs, safety and health 

procedures, and battery availability, replacement, recycling, and disposal, that may be required to 

enable electric utilities, manufacturers, and others to support the operation and maintenance of 

electric motor vehicles and associated equipment; 

(8) the term `motor vehicle' has the meaning given such term under section 216(2) of the Clean Air 

Act (42 U.S.C. 7550(2)); 

(9) the term `non-Federal person' means an entity not part of the Federal Government that is either-

- 

(A) organized under the laws of the United States or the laws of a State of the United States; 

or 

(B) a unit of State or local government; 

(10) the term `proposer' means a non-Federal person that submits a proposal to conduct a 

demonstration project under this title; 

(11) the term `price differential' means-- 

(A) in the case of a purchased electric motor vehicle, the difference between the 

manufacturer's suggested retail price of such electric motor vehicle and the manufacturer's 

suggested retail price of a comparable conventionally fueled motor vehicle; and 

(B) in the case of a leased electric motor vehicle, the difference between the monthly lease 

payment of such electric motor vehicle over the life of the lease and the monthly lease 

payment of a comparable conventionally fueled motor vehicle over the life of the lease; and 

(12) the term `user' means a person or entity that purchases or leases an electric motor vehicle. 

Subtitle A--Electric Motor Vehicle Commercial Demonstration Program 

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SEC. 611. PROGRAM AND SOLICITATION. 

(a) PROGRAM- The Secretary shall conduct a program to demonstrate electric motor vehicles and the 

associated equipment of such vehicles, in consultation with the Electric and Hybrid Vehicle Program 

Site Operators, manufacturers, the electric utility industry, and such other persons as the Secretary 

considers appropriate. Such program shall be-- 

(1) designed to accelerate the development and use of electric motor vehicles; and 

(2) structured to evaluate the performance of such electric motor vehicles in field operation, 

including fleet operation, and evaluate the necessary supporting infrastructure. 

(b) SOLICITATION- (1) Not later than 18 months after the date of enactment of this Act, the Secretary 

shall solicit proposals to demonstrate electric motor vehicles and associated equipment in one or more 

eligible metropolitan areas. The Secretary may make additional solicitations for proposals if the 

Secretary determines that such solicitations are necessary to carry out this subtitle. 

(2)(A) Solicitations for proposals under this subsection shall require the proposer to include a 

description, including the manufacturer or manufacturers of the electric motor vehicles; the proposed 

users of the electric motor vehicles; the eligible metropolitan area or areas involved; the number of 

electric motor vehicles to be demonstrated and their type, characteristics, and life-cycle costs; the price 

differential; the proposed discount payment; the contributions of State or local governments and other 

persons to the demonstration project; the type of associated equipment to be demonstrated; the domestic 

content of the electric motor vehicles and associated equipment; and any other information the Secretary 

considers appropriate. 

(B) If the proposal includes a lease arrangement, the proposal shall indicate the terms of such lease 

arrangement for the electric motor vehicles or associated equipment. 

(3) The solicitation for proposals under this subsection shall establish a closing date for receipt of 

proposals. The Secretary may, if necessary, extend the closing date for receipt of proposals for a period 

not to exceed 90 days. 

SEC. 612. SELECTION OF PROPOSALS. 

(a) SELECTION- (1) The Secretary, in consultation with the Secretary of Transportation, the Secretary 

of Commerce, and the Administrator of the Environmental Protection Agency, shall, not later than 120 

days after the closing date, as established by the Secretary, for receipt of proposals under section 611, 

select at least one, but not more than 10, proposals to receive financial assistance under section 613. 

(2) The Secretary may select more than 10 proposals under this section, if the Secretary determines that 

the total amount of available funds is not likely to be otherwise utilized. 

(3) Any proposal selected under paragraph (1) must satisfy the limitations set forth in section 613(c). 

(4) No one project selected under this section shall receive more than 25 percent of the funds authorized 

under section 616. 

(5) A demonstration project may not include electric motor vehicles in more than one eligible 

metropolitan area, unless the total number of electric motor vehicles in that project is equal to, or greater 

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than, 100. 

(b) CRITERIA- In selecting a proposal and in negotiating financial assistance under this section, the 

Secretary shall consider-- 

(1) the ability of the manufacturer, directly, indirectly, or in combination with the proposer, to 

develop, assist in the demonstration of, manufacture, distribute, sell, provide warranties for, 

service, and ensure the continued availability of parts for, electric motor vehicles in the 

demonstration project; 

(2) the geographic and climatic diversity of the eligible metropolitan area or areas in which the 

demonstration project is to be undertaken, when considered in combination with other proposals 

and other selected demonstration projects; 

(3) the long-term technical and competitive viability of the electric motor vehicles; 

(4) the suitability of the electric motor vehicles for their intended uses; 

(5) the environmental effects of the use of the proposed electric motor vehicles; 

(6) the price differential and the proposed discount payment; 

(7) the extent of involvement of State or local government and other persons in the demonstration 

project, and whether such involvement will-- 

(A) permit a reduction of the Federal cost share per vehicle; or 

(B) otherwise be used to allow the Federal contribution to be provided for a greater number 

of electric motor vehicles; 

(8) the proportion of domestic content of the electric motor vehicles and associated equipment; 

(9) the safety of the electric motor vehicles; and 

(10) such other criteria as the Secretary considers appropriate. 

(c) CONDITIONS- The Secretary shall require that-- 

(1) as a part of a demonstration project, the user or users of the electric motor vehicles will provide 

to the proposer and the manufacturer information regarding the operation, maintenance, 

performance, and use of the electric motor vehicles for 5 years after the beginning of the 

demonstration project; 

(2) the proposer shall provide to the Secretary such information regarding the operation, 

maintenance, performance, and use of the electric motor vehicles as the Secretary may request 

during the period of the demonstration project; 

(3) in the case of a demonstration project including automobiles or light duty trucks, the number of 

electric motor vehicles to be included in the demonstration project shall be no less than 50, except 

that the Secretary may select a demonstration project with fewer than 50 electric motor vehicles if 

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the Secretary determines that selection of such a proposal will ensure that there is geographic or 

climatic diversity among the proposals selected and that an adequate demonstration to accelerate 

the development and use of electric motor vehicles can be undertaken with fewer than 50 electric 

motor vehicles; and 

(4) the procurement practices of the manufacturer do not discriminate against United States 

producers of vehicle parts. 

SEC. 613. DISCOUNT PAYMENTS. 

(a) CERTIFICATION- The Secretary shall provide a discount payment to a proposer of a proposal 

selected under this subtitle for purposes of reimbursing the proposer for a discount provided to the users 

if the proposer certifies to the Secretary that-- 

(1) the electric motor vehicles have been purchased or leased by a user or users in accordance with 

the requirements of this subtitle; and 

(2) the proposer has provided to the user or users a discount payment in accordance with the 

requirements of this subtitle. 

(b) PAYMENT- Not later than 30 days after receipt from the proposer of certification that the Secretary 

determines satisfies the requirements of subsection (a), the Secretary shall pay to the proposer the full 

amount of the discount payment, to the extent provided in advance in appropriations Acts. 

(c) CALCULATIONS OF DISCOUNT PAYMENTS- (1) The discount payment shall be no greater 

than-- 

(A) the price differential; or 

(B) the price of the comparable conventionally fueled motor vehicle. 

(2) The purchase price of the electric motor vehicle, less the discount payment and less any additional 

reduction in the purchase price of the electric motor vehicle that may result from contributions provided 

by other parties, may not be less than the manufacturer's suggested retail price of a comparable 

conventionally fueled motor vehicle. 

(3) The maximum discount payment shall be no greater than $10,000 per electric motor vehicle. 

SEC. 614. COST-SHARING. 

(a) REQUIREMENT- The Secretary shall require at least 50 percent of the costs directly and specifically 

related to any project under this subtitle to be from non-Federal sources. Such share may be in the form 

of cash, personnel, services, equipment, and other resources. 

(b) REDUCTION- The Secretary may reduce the amount of costs required to be provided by nonFederal sources under subsection (a) if the Secretary determines that the reduction is necessary and 

appropriate-- 

(1) considering the technological risks involved in the project; and

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(2) in order to meet the objectives of this subtitle. 

SEC. 615. REPORTS TO CONGRESS. 

(a) PROGRESS REPORTS- The Secretary shall report annually to Congress on the progress being 

made, through demonstration projects supported under this subtitle, to accelerate the development and 

use of electric motor vehicles. 

(b) REPORT ON ENCOURAGING THE PURCHASE AND USE OF ELECTRIC MOTOR 

VEHICLES- Within 18 months after the date of enactment of this Act, the Secretary shall submit to the 

Congress a report on methods for encouraging the purchase and use of electric motor vehicles. Such 

report shall-- 

(1) address the potential cost of purchasing and maintaining electric motor vehicles, including the 

initial cost of the batteries and the cost of replacement batteries; 

(2) identify methods for reducing, subsidizing, or sharing such costs; and 

(3) include recommendations for legislative and administrative measures to encourage the 

purchase and use of electric motor vehicles. 

SEC. 616. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for purposes of this subtitle $50,000,000 for the 

10-year period beginning with the first full fiscal year after the date of enactment of this Act, to remain 

available until expended. 

Subtitle B--Electric Motor Vehicle Infrastructure and Support Systems Development Program 

SEC. 621. GENERAL AUTHORITY. 

(a) PROGRAM- The Secretary shall undertake a program with one or more non-Federal persons, 

including fleet operators, for cost-shared research, development, demonstration, or commercial 

application of an infrastructure and support systems program. 

(b) ELIGIBILITY- A non-Federal person shall be eligible to receive financial assistance under this 

subtitle only if such person demonstrates, to the satisfaction of the Secretary, that the person will conduct 

a substantial portion of activities under the project in the United States using domestic labor and 

materials. 

(c) COORDINATION- Activities under this subtitle shall be coordinated with activities under subtitle A.

SEC. 622. PROPOSALS. 

(a) SOLICITATION- Not later than one year after the date of enactment of this Act, the Secretary shall 

solicit proposals from non-Federal persons, including fleet operators, for projects under this subtitle. 

Within 240 days after proposals have been solicited, the Secretary shall select proposals. 

(b) CRITERIA- (1) The Secretary shall provide financial assistance to no more than 10 projects under 

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this subtitle, unless the Secretary determines that the total amount of available funds is not likely to be 

otherwise used. 

(2) The proposals selected by the Secretary shall, to the extent practicable, represent geographically and 

climatically diverse regions of the United States. 

(3) The aggregate Federal financial assistance for each project under this subtitle may not exceed 

$4,000,000. 

(c) PROJECTS- The infrastructure and support systems programs for which projects are selected under 

this subtitle may address-- 

(1) the ability to service electric motor vehicles and to provide or service associated equipment; 

(2) the installation of charging facilities; 

(3) rates and cost recovery for electric utilities who invest in infrastructure capital-related 

expenditures; 

(4) the development of safety and health procedures and guidelines related to battery charging, 

watering, and emissions; 

(5) the conduct of information dissemination programs; and 

(6) such other subjects as the Secretary considers necessary in order to address the infrastructure 

and support systems needed to support the development and use of energy storage technologies, 

including advanced batteries, and the demonstration of electric motor vehicles. 

SEC. 623. PROTECTION OF PROPRIETARY INFORMATION. 

(a) IN GENERAL- In the case of activities, including joint venture activities, under this title, and in the 

case of any existing or future activities, including joint venture activities, related primarily to battery 

technology for electric motor vehicles under other provisions of law, where the knowledge resulting 

from research and development activities conducted pursuant to such activities, including joint venture 

activities, is for the benefit of the participants (particularly domestic companies) that provide financial 

resources to a project under this title, the Secretary, for a period of up to 5 years after the development of 

information that-- 

(1) results from research and development activities conducted under this title; and 

(2) would be a trade secret or commercial or financial information that is privileged or confidential 

if the information had been obtained from a participant, 

shall, notwithstanding any other provision of law, provide appropriate protections against the 

dissemination of such information to the public, and the provisions of section 1905 of title 18, United 

States Code, shall apply to such information. Nothing in this subsection provides protections against the 

dissemination of such information to Congress. 

(b) DEFINITION- For purposes of subsection (a), the term `domestic companies' means entities which 

are substantially involved in the United States in the domestic production of motor vehicles for sale in 

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the United States and have a substantial percentage of their production facilities in the United States. 

SEC. 624. COMPLIANCE WITH EXISTING LAW. 

Nothing in this title shall be deemed to convey to any person, partnership, corporation, or other entity, 

immunity from civil or criminal liability under any antitrust law or to create defenses to actions under 

any antitrust law. 

SEC. 625. ELECTRIC UTILITY PARTICIPATION STUDY. 

The Secretary, in consultation with appropriate Federal agencies, representatives of State regulatory 

commissions and electric utilities, and such other persons as the Secretary considers appropriate, shall 

undertake or cause to have undertaken a study to determine the means by which electric utilities may 

invest in, own, sell, lease, service, or recharge batteries used to power electric motor vehicles. 

SEC. 626. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for purposes of this subtitle $40,000,000 for the 

5-year period beginning with the first full fiscal year after the date of enactment of this Act, to remain 

available until expended. 

TITLE VII--ELECTRICITY 

Subtitle A--Exempt Wholesale Generators 

SEC. 711. PUBLIC UTILITY HOLDING COMPANY ACT REFORM. 

The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 and following) is amended by 

redesignating sections 32 and 33 as sections 34 and 35 respectively and by adding the following new 

section after section 31: 

`SEC. 32. EXEMPT WHOLESALE GENERATORS. 

`(a) DEFINITIONS- For purposes of this section-- 

`(1) EXEMPT WHOLESALE GENERATOR- The term `exempt wholesale generator' means any 

person determined by the Federal Energy Regulatory Commission to be engaged directly, or 

indirectly through one or more affiliates as defined in section 2(a)(11)(B), and exclusively in the 

business of owning or operating, or both owning and operating, all or part of one or more eligible 

facilities and selling electric energy at wholesale. No person shall be deemed to be an exempt 

wholesale generator under this section unless such person has applied to the Federal Energy 

Regulatory Commission for a determination under this paragraph. A person applying in good faith 

for such a determination shall be deemed an exempt wholesale generator under this section, with 

all of the exemptions provided by this section, until the Federal Energy Regulatory Commission 

makes such determination. The Federal Energy Regulatory Commission shall make such 

determination within 60 days of its receipt of such application and shall notify the Commission 

whenever a determination is made under this paragraph that any person is an exempt wholesale 

generator. Not later than 12 months after the date of enactment of this section, the Federal Energy 

Regulatory Commission shall promulgate rules implementing the provisions of this paragraph. 

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Applications for determination filed after the effective date of such rules shall be subject thereto. 

`(2) ELIGIBLE FACILITY- The term `eligible facility' means a facility, wherever located, which 

is either-- 

`(A) used for the generation of electric energy exclusively for sale at wholesale, or 

`(B) used for the generation of electric energy and leased to one or more public utility 

companies; Provided, That any such lease shall be treated as a sale of electric energy at 

wholesale for purposes of sections 205 and 206 of the Federal Power Act. 

Such term shall not include any facility for which consent is required under subsection (c) if such 

consent has not been obtained. Such term includes interconnecting transmission facilities 

necessary to effect a sale of electric energy at wholesale. For purposes of this paragraph, the term 

`facility' may include a portion of a facility subject to the limitations of subsection (d) and shall 

include a facility the construction of which has not been commenced or completed. 

`(3) SALE OF ELECTRIC ENERGY AT WHOLESALE- The term `sale of electric energy at 

wholesale' shall have the same meaning as provided in section 201(d) of the Federal Power Act 

(16 U.S.C. 824(d)). 

`(4) RETAIL RATES AND CHARGES- The term `retail rates and charges' means rates and 

charges for the sale of electric energy directly to consumers. 

`(b) FOREIGN RETAIL SALES- Notwithstanding paragraphs (1) and (2) of subsection (a), retail sales 

of electric energy produced by a facility located in a foreign country shall not prevent such facility from 

being an eligible facility, or prevent a person owning or operating, or both owning and operating, such 

facility from being an exempt wholesale generator if none of the electric energy generated by such 

facility is sold to consumers in the United States. 

`(c) STATE CONSENT FOR EXISTING RATE-BASED FACILITIES- If a rate or charge for, or in 

connection with, the construction of a facility, or for electric energy produced by a facility (other than 

any portion of a rate or charge which represents recovery of the cost of a wholesale rate or charge) was 

in effect under the laws of any State as of the date of enactment of this section, in order for the facility to 

be considered an eligible facility, every State commission having jurisdiction over any such rate or 

charge must make a specific determination that allowing such facility to be an eligible facility (1) will 

benefit consumers, (2) is in the public interest, and (3) does not violate State law; Provided, That in the 

case of such a rate or charge which is a rate or charge of an affiliate of a registered holding company: 

`(A) such determination with respect to the facility in question shall be required from every State 

commission having jurisdiction over the retail rates and charges of the affiliates of such registered 

holding company; and 

`(B) the approval of the Commission under this Act shall not be required for the transfer of the 

facility to an exempt wholesale generator. 

`(d) HYBRIDS- (1) No exempt wholesale generator may own or operate a portion of any facility if any 

other portion of the facility is owned or operated by an electric utility company that is an affiliate or 

associate company of such exempt wholesale generator.

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`(2) ELIGIBLE FACILITY- Notwithstanding paragraph (1), an exempt wholesale generator may own or 

operate a portion of a facility identified in paragraph (1) if such portion has become an eligible facility as 

a result of the operation of subsection (c). 

`(e) EXEMPTION OF EWGS- An exempt wholesale generator shall not be considered an electric utility 

company under section 2(a)(3) of this Act and, whether or not a subsidiary company, an affiliate, or an 

associate company of a holding company, an exempt wholesale generator shall be exempt from all 

provisions of this Act. 

`(f) OWNERSHIP OF EWGS BY EXEMPT HOLDING COMPANIES- Notwithstanding any provision 

of this Act, a holding company that is exempt under section 3 of this Act shall be permitted, without 

condition or limitation under this Act, to acquire and maintain an interest in the business of one or more 

exempt wholesale generators. 

`(g) OWNERSHIP OF EWGS BY REGISTERED HOLDING COMPANIES- Notwithstanding any 

provision of this Act and the Commission's jurisdiction as provided under subsection (h) of this section, 

a registered holding company shall be permitted (without the need to apply for, or receive, approval from 

the Commission, and otherwise without condition under this Act) to acquire and hold the securities, or an 

interest in the business, of one or more exempt wholesale generators. 

`(h) FINANCING AND OTHER RELATIONSHIPS BETWEEN EWGS AND REGISTERED 

HOLDING COMPANIES- The issuance of securities by a registered holding company for purposes of 

financing the acquisition of an exempt wholesale generator, the guarantee of securities of an exempt 

wholesale generator by a registered holding company, the entering into service, sales or construction 

contracts, and the creation or maintenance of any other relationship in addition to that described in 

subsection (g) between an exempt wholesale generator and a registered holding company, its affiliates 

and associate companies, shall remain subject to the jurisdiction of the Commission under this Act: 

Provided, That-- 

`(1) section 11 of this Act shall not prohibit the ownership of an interest in the business of one or 

more exempt wholesale generators by a registered holding company (regardless of where facilities 

owned or operated by such exempt wholesale generators are located), and such ownership by a 

registered holding company shall be deemed consistent with the operation of an integrated public 

utility system; 

`(2) the ownership of an interest in the business of one or more exempt wholesale generators by a 

registered holding company (regardless of where facilities owned or operated by such exempt 

wholesale generators are located) shall be considered as reasonably incidental, or economically 

necessary or appropriate, to the operations of an integrated public utility system; 

`(3) in determining whether to approve (A) the issue or sale of a security by a registered holding 

company for purposes of financing the acquisition of an exempt wholesale generator, or (B) the 

guarantee of a security of an exempt wholesale generator by a registered holding company, the 

Commission shall not make a finding that such security is not reasonably adapted to the earning 

power of such company or to the security structure of such company and other companies in the 

same holding company system, or that the circumstances are such as to constitute the making of 

such guarantee an improper risk for such company, unless the Commission first finds that the issue 

or sale of such security, or the making of the guarantee, would have a substantial adverse impact 

on the financial integrity of the registered holding company system;

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`(4) in determining whether to approve (A) the issue or sale of a security by a registered holding 

company for purposes other than the acquisition of an exempt wholesale generator, or (B) other 

transactions by such registered holding company or by its subsidiaries other than with respect to 

exempt wholesale generators, the Commission shall not consider the effect of the capitalization or 

earnings of any subsidiary which is an exempt wholesale generator upon the registered holding 

company system, unless the approval of the issue or sale or other transaction, together with the 

effect of such capitalization and earnings, would have a substantial adverse impact on the financial 

integrity of the registered holding company system; 

`(5) the Commission shall make its decision under paragraph (3) to approve or disapprove the 

issue or sale of a security or the guarantee of a security within 120 days of the filing of a 

declaration concerning such issue, sale or guarantee; and 

`(6) the Commission shall promulgate regulations with respect to the actions which would be 

considered, for purposes of this subsection, to have a substantial adverse impact on the financial 

integrity of the registered holding company system; such regulations shall ensure that the action 

has no adverse impact on any utility subsidiary or its customers, or on the ability of State 

commissions to protect such subsidiary or customers, and shall take into account the amount and 

type of capital invested in exempt wholesale generators, the ratio of such capital to the total capital 

invested in utility operations, the availability of books and records, and the financial and operating 

experience of the registered holding company and the exempt wholesale generator; the 

Commission shall promulgate such regulations within 6 months after the enactment of this section; 

after such 6-month period the Commission shall not approve any actions under paragraph (3), (4) 

or (5) except in accordance with such issued regulations. 

`(i) APPLICATION OF ACT TO OTHER ELIGIBLE FACILITIES- In the case of any person engaged 

directly and exclusively in the business of owning or operating (or both owning and operating) all or part 

of one or more eligible facilities, an advisory letter issued by the Commission staff under this Act after 

the date of enactment of this section, or an order issued by the Commission under this Act after the date 

of enactment of this section, shall not be required for the purpose, or have the effect, of exempting such 

person from treatment as an electric utility company under section 2(a)(3) or exempting such person 

from any provision of this Act. 

`(j) OWNERSHIP OF EXEMPT WHOLESALE GENERATORS AND QUALIFYING FACILITIESThe ownership by a person of one or more exempt wholesale generators shall not result in such person 

being considered as being primarily engaged in the generation or sale of electric power within the 

meaning of sections 3(17)(C)(ii) and 3(18)(B)(ii) of the Federal Power Act (16 U.S.C. 796(17)(C)(ii) and 

796(18)(B)(ii)). 

`(k) PROTECTION AGAINST ABUSIVE AFFILIATE TRANSACTIONS- 

`(1) PROHIBITION- After the date of enactment of this section, an electric utility company may 

not enter into a contract to purchase electric energy at wholesale from an exempt wholesale 

generator if the exempt wholesale generator is an affiliate or associate company of the electric 

utility company. 

`(2) STATE AUTHORITY TO EXEMPT FROM PROHIBITION- Notwithstanding paragraph (1), 

an electric utility company may enter into a contract to purchase electric energy at wholesale from 

an exempt wholesale generator that is an affiliate or associate company of the electric utility 

company-- 

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`(A) if every State commission having jurisdiction over the retail rates of such electric utility 

company makes each of the following specific determinations in advance of the electric 

utility company entering into such contract: 

`(i) A determination that such commission has sufficient regulatory authority, 

resources and access to books and records of the electric utility company and any 

relevant associate, affiliate or subsidiary company to exercise its duties under this 

subparagraph. 

`(ii) A determination that the transaction-- 

`(I) will benefit consumers, 

`(II) does not violate any State law (including where applicable, least cost 

planning), 

`(III) would not provide the exempt wholesale generator any unfair competitive 

advantage by virtue of its affiliation or association with the electric utility 

company, and 

`(IV) is in the public interest; or 

`(B) if such electric utility company is not subject to State commission retail rate regulation 

and the purchased electric energy: 

`(i) would not be resold to any affiliate or associate company, or 

`(ii) the purchased electric energy would be resold to an affiliate or associate company 

and every State commission having jurisdiction over the retail rates of such affiliate or 

associate company makes each of the determinations provided under subparagraph 

(A), including the determination concerning a State commission's duties. 

`(l) RECIPROCAL ARRANGEMENTS PROHIBITED- Reciprocal arrangements among companies 

that are not affiliates or associate companies of each other that are entered into in order to avoid the 

provisions of this section are prohibited.'. 

SEC. 712. STATE CONSIDERATION OF THE EFFECTS OF POWER PURCHASES ON UTILITY 

COST OF CAPITAL; CONSIDERATION OF THE EFFECTS OF LEVERAGED CAPITAL 

STRUCTURES ON THE RELIABILITY OF WHOLESALE POWER SELLERS; AND 

CONSIDERATION OF ADEQUATE FUEL SUPPLIES. 

Section 111 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 2601 and following) is 

amended by inserting the following new paragraph after paragraph (9): 

`(10) CONSIDERATION OF THE EFFECTS OF WHOLESALE POWER PURCHASES ON 

UTILITY COST OF CAPITAL; EFFECTS OF LEVERAGED CAPITAL STRUCTURES ON 

THE RELIABILITY OF WHOLESALE POWER SELLERS; AND ASSURANCE OF 

ADEQUATE FUEL SUPPLIES- (A) To the extent that a State regulatory authority requires or 

allows electric utilities for which it has ratemaking authority to consider the purchase of long-term 

wholesale power supplies as a means of meeting electric demand, such authority shall perform a 

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general evaluation of: 

`(i) the potential for increases or decreases in the costs of capital for such utilities, and any 

resulting increases or decreases in the retail rates paid by electric consumers, that may result 

from purchases of long-term wholesale power supplies in lieu of the construction of new 

generation facilities by such utilities; 

`(ii) whether the use by exempt wholesale generators (as defined in section 32 of the Public 

Utility Holding Company Act of 1935) of capital structures which employ proportionally 

greater amounts of debt than the capital structures of such utilities threatens reliability or 

provides an unfair advantage for exempt wholesale generators over such utilities; 

`(iii) whether to implement procedures for the advance approval or disapproval of the 

purchase of a particular long-term wholesale power supply; and 

`(iv) whether to require as a condition for the approval of the purchase of power that there be 

reasonable assurances of fuel supply adequacy. 

`(B) For purposes of implementing the provisions of this paragraph, any reference contained in 

this section to the date of enactment of the Public Utility Regulatory Policies Act of 1978 shall be 

deemed to be a reference to the date of enactment of this paragraph. 

`(C) Notwithstanding any other provision of Federal law, nothing in this paragraph shall prevent a 

State regulatory authority from taking such action, including action with respect to the allowable 

capital structure of exempt wholesale generators, as such State regulatory authority may determine 

to be in the public interest as a result of performing evaluations under the standards of 

subparagraph (A). 

`(D) Notwithstanding section 124 and paragraphs (1) and (2) of section 112(a), each State 

regulatory authority shall consider and make a determination concerning the standards of 

subparagraph (A) in accordance with the requirements of subsections (a) and (b) of this section, 

without regard to any proceedings commenced prior to the enactment of this paragraph. 

`(E) Notwithstanding subsections (b) and (c) of section 112, each State regulatory authority shall 

consider and make a determination concerning whether it is appropriate to implement the 

standards set out in subparagraph (A) not later than one year after the date of enactment of this 

paragraph.'. 

SEC. 713. PUBLIC UTILITY HOLDING COMPANIES TO OWN INTERESTS IN COGENERATION 

FACILITIES. 

Public Law 99-186 (99 Stat. 1180, as amended by Public Law 99-553, 100 Stat. 3087), is amended to 

read as follows: 

`SECTION 1. Notwithstanding section 11(b)(1) of the Public Utility Holding Company Act of 1935, a 

company registered under said Act, or a subsidiary company of such registered company, may acquire or 

retain, in any geographic area, an interest in any qualifying cogeneration facilities and qualifying small 

power production facilities as defined pursuant to the Public Utility Regulatory Policies Act of 1978, and 

shall qualify for any exemption relating to the Public Utility Holding Company Act of 1935 prescribed 

pursuant to section 210 of the Public Utility Regulatory Policies Act of 1978.

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`SEC. 2. Nothing herein shall be construed to affect the applicability of section 3(17)(C) or section 3(18)

(B) of the Federal Power Act or any provision of the Public Utility Holding Company Act of 1935, other 

than section 11(b)(1), to the acquisition or retention of any such interest by any such company.'. 

SEC. 714. BOOKS AND RECORDS. 

Section 201 of the Federal Power Act is amended by adding the following new subsection at the end 

thereof: 

`(g) BOOKS AND RECORDS- (1) Upon written order of a State commission, a State commission may 

examine the books, accounts, memoranda, contracts, and records of-- 

`(A) an electric utility company subject to its regulatory authority under State law, 

`(B) any exempt wholesale generator selling energy at wholesale to such electric utility, and 

`(C) any electric utility company, or holding company thereof, which is an associate company or 

affiliate of an exempt wholesale generator which sells electric energy to an electric utility 

company referred to in subparagraph (A), 

wherever located, if such examination is required for the effective discharge of the State commission's 

regulatory responsibilities affecting the provision of electric service. 

`(2) Where a State commission issues an order pursuant to paragraph (1), the State commission shall not 

publicly disclose trade secrets or sensitive commercial information. 

`(3) Any United States district court located in the State in which the State commission referred to in 

paragraph (1) is located shall have jurisdiction to enforce compliance with this subsection. 

`(4) Nothing in this section shall-- 

`(A) preempt applicable State law concerning the provision of records and other information; or 

`(B) in any way limit rights to obtain records and other information under Federal law, contracts, 

or otherwise. 

`(5) As used in this subsection the terms `affiliate', `associate company', `electric utility company', 

`holding company', `subsidiary company', and `exempt wholesale generator' shall have the same 

meaning as when used in the Public Utility Holding Company Act of 1935.'. 

SEC. 715. INVESTMENT IN FOREIGN UTILITIES. 

The Public Utility Holding Company Act of 1935 (15 U.S.C. 79 et seq.) is amended by inserting after 

section 32 the following new section: 

`SEC. 33. TREATMENT OF FOREIGN UTILITIES. 

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`(1) IN GENERAL- A foreign utility company shall be exempt from all of the provisions of this 

Act, except as otherwise provided under this section, and shall not, for any purpose under this Act, 

be deemed to be a public utility company under section 2(a)(5), notwithstanding that the foreign 

utility company may be a subsidiary company, an affiliate, or an associate company of a holding 

company or of a public utility company. 

`(2) STATE COMMISSION CERTIFICATION- Section (a)(1) shall not apply or be effective 

unless every State commission having jurisdiction over the retail electric or gas rates of a public 

utility company that is an associate company or an affiliate of a company otherwise exempted 

under section (a)(1) (other than a public utility company that is an associate company or an 

affiliate of a registered holding company) has certified to the Commission that it has the authority 

and resources to protect ratepayers subject to its jurisdiction and that it intends to exercise its 

authority. Such certification, upon the filing of a notice by such State commission, may be revised 

or withdrawn by the State commission prospectively as to any future acquisition. The requirement 

of State certification shall be deemed satisfied if the relevant State commission had, prior to the 

date of enactment of this section, on the basis of prescribed conditions of general applicability, 

determined that ratepayers of a public utility company are adequately insulated from the effects of 

diversification and the diversification would not impair the ability of the State commission to 

regulate effectively the operations of such company. 

`(3) DEFINITION- For purposes of this section, the term `foreign utility company' means any 

company that-- 

`(A) owns or operates facilities that are not located in any State and that are used for the 

generation, transmission, or distribution of electric energy for sale or the distribution at retail 

of natural or manufactured gas for heat, light, or power, if such company-- 

`(i) derives no part of its income, directly or indirectly, from the generation, 

transmission, or distribution of electric energy for sale or the distribution at retail of 

natural or manufactured gas for heat, light, or power, within the United States; and 

`(ii) neither the company nor any of its subsidiary companies is a public utility 

company operating in the United States; and 

`(B) provides notice to the Commission, in such form as the Commission may prescribe, that 

such company is a foreign utility company. 

`(b) OWNERSHIP OF FOREIGN UTILITY COMPANIES BY EXEMPT HOLDING COMPANIESNotwithstanding any provision of this Act except as provided under this section, a holding company that 

is exempt under section 3 of the Act shall be permitted without condition or limitation under the Act to 

acquire and maintain an interest in the business of one or more foreign utility companies. 

`(c) REGISTERED HOLDING COMPANIES- 

`(1) OWNERSHIP OF FOREIGN UTILITY COMPANIES BY REGISTERED HOLDING 

COMPANIES- Notwithstanding any provision of this Act except as otherwise provided under this 

section, a registered holding company shall be permitted as of the date of enactment of this section 

(without the need to apply for, or receive approval from the Commission) to acquire and hold the 

securities or an interest in the business, of one or more foreign utility companies. The Commission 

shall promulgate rules or regulations regarding registered holding companies' acquisition of 

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interests in foreign utility companies which shall provide for the protection of the customers of a 

public utility company which is an associate company of a foreign utility company and the 

maintenance of the financial integrity of the registered holding company system. 

`(2) ISSUANCE OF SECURITIES- The issuance of securities by a registered holding company 

for purposes of financing the acquisition of a foreign utility company, the guarantee of securities 

of a foreign utility company by a registered holding company, the entering into service, sales, or 

construction contracts, and the creation or maintenance of any other relationship between a foreign 

utility company and a registered holding company, its affiliates and associate companies, shall 

remain subject to the jurisdiction of the Commission under this Act (unless otherwise exempted 

under this Act, in the case of a transaction with an affiliate or associate company located outside of

the United States). Any State commission with jurisdiction over the retail rates of a public utility 

company which is part of a registered holding company system may make such recommendations 

to the Commission regarding the registered holding company's relationship to a foreign utility 

company, and the Commission shall reasonably and fully consider such State recommendation. 

`(3) CONSTRUCTION- Any interest in the business of 1 or more foreign utility companies, or 1 

or more companies organized exclusively to own, directly or indirectly, the securities or other 

interest in a foreign utility company, shall for all purposes of this Act, be considered to be-- 

`(A) consistent with the operation of a single integrated public utility system, within the 

meaning of section 11; and 

`(B) reasonably incidental, or economically necessary or appropriate, to the operations of an 

integrated public utility system, within the meaning of section 11. 

`(d) EFFECT ON EXISTING LAW; NO STATE PREEMPTION- Nothing in this section shall-- 

`(1) preclude any person from qualifying for or maintaining any exemption otherwise provided for 

under this Act or the rules, regulations, or orders promulgated or issued under this Act; or 

`(2) be deemed or construed to limit the authority of any State (including any State regulatory 

authority) with respect to-- 

`(A) any public utility company or holding company subject to such State's jurisdiction; or 

`(B) any transaction between any foreign utility company (or any affiliate or associate 

company thereof) and any public utility company or holding company subject to such State's 

jurisdiction. 

`(e) REPORTING REQUIREMENTS- 

`(1) FILING OF REPORTS- A public utility company that is an associate company of a foreign 

utility company shall file with the Commission such reports (with respect to such foreign utility 

company) as the Commission may by rules, regulations, or order prescribe as necessary or 

appropriate in the public interest or for the protection of investors or consumers. 

`(2) NOTICE OF ACQUISITIONS- Not later than 30 days after the consummation of the 

acquisition of an interest in a foreign utility company by an associate company of a public utility 

company that is subject to the jurisdiction of a State commission with respect to its retail electric 

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or gas rates or by such public utility company, such associate company or such public utility 

company, shall provide notice of such acquisition to every State commission having jurisdiction 

over the retail electric or gas rates of such public utility company, in such form as may be 

prescribed by the State commission. 

`(f) PROHIBITION ON ASSUMPTION OF LIABILITIES- 

`(1) IN GENERAL- No public utility company that is subject to the jurisdiction of a State 

commission with respect to its retail electric or gas rates shall issue any security for the purpose of 

financing the acquisition, or for the purposes of financing the ownership or operation, of a foreign 

utility company, nor shall any such public utility company assume any obligation or liability as 

guarantor, endorser, surety, or otherwise in respect of any security of a foreign utility company. 

`(2) EXCEPTION FOR HOLDING COMPANIES WHICH ARE PREDOMINANTLY PUBLIC 

UTILITY COMPANIES- Subsection (f)(1) shall not apply if: 

`(A) the public utility company that is subject to the jurisdiction of a State commission with 

respect to its retail electric or gas rates is a holding company and is not an affiliate under 

section 2(a)(11)(B) of another holding company or is not subject to regulation as a holding 

company and has no affiliate as defined in section 2(a)(11)(A) that is a public utility 

company subject to the jurisdiction of a State commission with respect to its retail electric or 

gas rates; and 

`(B) each State commission having jurisdiction with respect to the retail electric and gas 

rates of such public utility company expressly permits such public utility to engage in a 

transaction otherwise prohibited under section (f)(1); and 

`(C) the transaction (aggregated with all other then-outstanding transactions exempted under 

this subsection) does not exceed 5 per centum of the then-outstanding total capitalization of 

the public utility. 

`(g) PROHIBITION ON PLEDGING OR ENCUMBERING UTILITY ASSETS- No public utility 

company that is subject to the jurisdiction of a State commission with respect to its retail electric or gas 

rates shall pledge or encumber any utility assets or utility assets of any subsidiary thereof for the benefit 

of an associate foreign utility company.'. 

Subtitle B--Federal Power Act; Interstate Commerce in Electricity 

SEC. 721. AMENDMENTS TO SECTION 211 OF FEDERAL POWER ACT. 

Section 211 of the Federal Power Act (16 U.S.C. 824j) is amended as follows: 

(1) The first sentence of subsection (a) is amended to read as follows: `Any electric utility, Federal 

power marketing agency, or any other person generating electric energy for sale for resale, may 

apply to the Commission for an order under this subsection requiring a transmitting utility to 

provide transmission services (including any enlargement of transmission capacity necessary to 

provide such services) to the applicant.'. 

(2) In the second sentence of subsection (a), strike `the Commission may' and all that follows and 

insert `the Commission may issue such order if it finds that such order meets the requirements of 

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section 212, and would otherwise be in the public interest. No order may be issued under this 

subsection unless the applicant has made a request for transmission services to the transmitting 

utility that would be the subject of such order at least 60 days prior to its filing of an application 

for such order.'. 

(3) Amend subsection (b) to read as follows: 

`(b) RELIABILITY OF ELECTRIC SERVICE- No order may be issued under this section or section 

210 if, after giving consideration to consistently applied regional or national reliability standards, 

guidelines, or criteria, the Commission finds that such order would unreasonably impair the continued 

reliability of electric systems affected by the order.'. 

(4) In subsection (c)-- 

(A) Strike out paragraph (1). 

(B) In paragraph (2) strike `which requires the electric' and insert `which requires the 

transmitting'. 

(C) Strike out paragraphs (3) and (4). 

(5) In subsection (d)-- 

(A) In the first sentence of paragraph (1), strike `electric' and insert `transmitting' in each 

place it appears. 

(B) In the second sentence of paragraph (1) before `and each affected electric utility,' insert 

`each affected transmitting utility,'. 

(C) In paragraph (3), strike `electric' and insert `transmitting'. 

(D) Strike the period in subparagraph (B) of paragraph (1) and insert `, or' and after 

subparagraph (B) insert the following new subparagraph: 

`(C) the ordered transmission services require enlargement of transmission capacity and the 

transmitting utility subject to the order has failed, after making a good faith effort, to obtain the 

necessary approvals or property rights under applicable Federal, State, and local laws.'. 

SEC. 722. TRANSMISSION SERVICES. 

Section 212 of the Federal Power Act is amended as follows: 

(1) Strike subsections (a) and (b) and insert the following: 

`(a) RATES, CHARGES, TERMS, AND CONDITIONS FOR WHOLESALE TRANSMISSION 

SERVICES- An order under section 211 shall require the transmitting utility subject to the order to 

provide wholesale transmission services at rates, charges, terms, and conditions which permit the 

recovery by such utility of all the costs incurred in connection with the transmission services and 

necessary associated services, including, but not limited to, an appropriate share, if any, of legitimate, 

verifiable and economic costs, including taking into account any benefits to the transmission system of 

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providing the transmission service, and the costs of any enlargement of transmission facilities. Such 

rates, charges, terms, and conditions shall promote the economically efficient transmission and 

generation of electricity and shall be just and reasonable, and not unduly discriminatory or preferential. 

Rates, charges, terms, and conditions for transmission services provided pursuant to an order under 

section 211 shall ensure that, to the extent practicable, costs incurred in providing the wholesale 

transmission services, and properly allocable to the provision of such services, are recovered from the 

applicant for such order and not from a transmitting utility's existing wholesale, retail, and transmission 

customers.'. 

(2) Subsection (e) is amended to read as follows: 

`(e) SAVINGS PROVISIONS- (1) No provision of section 210, 211, 214, or this section shall be treated 

as requiring any person to utilize the authority of any such section in lieu of any other authority of law. 

Except as provided in section 210, 211, 214, or this section, such sections shall not be construed as 

limiting or impairing any authority of the Commission under any other provision of law. 

`(2) Sections 210, 211, 213, 214, and this section, shall not be construed to modify, impair, or supersede 

the antitrust laws. For purposes of this section, the term `antitrust laws' has the meaning given in 

subsection (a) of the first sentence of the Clayton Act, except that such term includes section 5 of the 

Federal Trade Commission Act to the extent that such section relates to unfair methods of competition.'. 

(3) Add the following new subsections at the end thereof: 

`(g) PROHIBITION ON ORDERS INCONSISTENT WITH RETAIL MARKETING AREAS- No order 

may be issued under this Act which is inconsistent with any State law which governs the retail marketing 

areas of electric utilities. 

`(h) PROHIBITION ON MANDATORY RETAIL WHEELING AND SHAM WHOLESALE 

TRANSACTIONS- No order issued under this Act shall be conditioned upon or require the transmission 

of electric energy: 

`(1) directly to an ultimate consumer, or 

`(2) to, or for the benefit of, an entity if such electric energy would be sold by such entity directly 

to an ultimate consumer, unless: 

`(A) such entity is a Federal power marketing agency; the Tennessee Valley Authority; a 

State or any political subdivision of a State (or an agency, authority, or instrumentality of a 

State or a political subdivision); a corporation or association that has ever received a loan for 

the purposes of providing electric service from the Administrator of the Rural Electrification 

Administration under the Rural Electrification Act of 1936; a person having an obligation 

arising under State or local law (exclusive of an obligation arising solely from a contract 

entered into by such person) to provide electric service to the public; or any corporation or 

association which is wholly owned, directly or indirectly, by any one or more of the 

foregoing; and 

`(B) such entity was providing electric service to such ultimate consumer on the date of 

enactment of this subsection or would utilize transmission or distribution facilities that it 

owns or controls to deliver all such electric energy to such electric consumer. 

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Nothing in this subsection shall affect any authority of any State or local government under State law 

concerning the transmission of electric energy directly to an ultimate consumer.'. 

`(i) LAWS APPLICABLE TO FEDERAL COLUMBIA RIVER TRANSMISSION SYSTEM- (1) The 

Commission shall have authority pursuant to section 210, section 211, this section, and section 213 to 

(A) order the Administrator of the Bonneville Power Administration to provide transmission service and 

(B) establish the terms and conditions of such service. In applying such sections to the Federal Columbia 

River Transmission System, the Commission shall assure that-- 

`(i) the provisions of otherwise applicable Federal laws shall continue in full force and effect and 

shall continue to be applicable to the system; and 

`(ii) the rates for the transmission of electric power on the system shall be governed only by such 

otherwise applicable provisions of law and not by any provision of section 210, section 211, this 

section, or section 213, except that no rate for the transmission of power on the system shall be 

unjust, unreasonable, or unduly discriminatory or preferential, as determined by the Commission. 

`(2) Notwithstanding any other provision of this Act with respect to the procedures for the determination 

of terms and conditions for transmission service-- 

`(A) when the Administrator of the Bonneville Power Administration either (i) in response to a 

written request for specific transmission service terms and conditions does not offer the requested 

terms and conditions, or (ii) proposes to establish terms and conditions of general applicability for 

transmission service on the Federal Columbia River Transmission System, then the Administrator 

may provide opportunity for a hearing and, in so doing, shall-- 

`(I) give notice in the Federal Register and state in such notice the written explanation of the 

reasons why the specific terms and conditions for transmission services are not being 

offered or are being proposed; 

`(II) adhere to the procedural requirements of paragraphs (1) through (3) of section 7(i) of 

the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839(i) (1) 

through (3)), except that the hearing officer shall, unless the hearing officer becomes 

unavailable to the agency, make a recommended decision to the Administrator that states the 

hearing officer's findings and conclusions, and the reasons or basis thereof, on all material 

issues of fact, law, or discretion presented on the record; and 

`(III) make a determination, setting forth the reasons for reaching any findings and 

conclusions which may differ from those of the hearing officer, based on the hearing record, 

consideration of the hearing officer's recommended decision, section 211 and this section, as 

amended by the Energy Policy Act of 1992, and the provisions of law as preserved in this 

section; and 

`(B) if application is made to the Commission under section 211 for transmission service under 

terms and conditions different than those offered by the Administrator, or following the denial of a 

request for transmission service by the Administrator, and such application is filed within 60 days 

of the Administrator's final determination and in accordance with Commission procedures, the 

Commission shall-- 

`(i) in the event the Administrator has conducted a hearing as herein provided for (I) accord 

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parties to the Administrator's hearing the opportunity to offer for the Commission record 

materials excluded by the Administrator from the hearing record, (II) accord such parties the 

opportunity to submit for the Commission record comments on appropriate terms and 

conditions, (III) afford those parties the opportunity for a hearing if and to the extent that the 

Commission finds the Administrator's hearing record to be inadequate to support a decision 

by the Commission, and (IV) establish terms and conditions for or deny transmission service 

based on the Administrator's hearing record, the Commission record, section 211 and this 

section, as amended by the Energy Policy Act of 1992, and the provisions of law as 

preserved in this section, or 

`(ii) in the event the Administrator has not conducted a hearing as herein provided for, 

determine whether to issue an order for transmission service in accordance with section 211 

and this section, including providing the opportunity for a hearing. 

`(3) Notwithstanding those provisions of section 313(b) of this Act (16 U.S.C. 825l) which designate the 

court in which review may be obtained, any party to a proceeding concerning transmission service 

sought to be furnished by the Administrator of the Bonneville Power Administration seeking review of 

an order issued by the Commission in such proceeding shall obtain a review of such order in the United 

States Court of Appeals for the Pacific Northwest, as that region is defined by section 3(14) of the 

Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839a(14)). 

`(4) To the extent the Administrator of the Bonneville Power Administration cannot be required under 

section 211, as a result of the Administrator's other statutory mandates, either to (A) provide 

transmission service to an applicant which the Commission would otherwise order, or (B) provide such 

service under rates, terms, and conditions which the Commission would otherwise require, the applicant 

shall not be required to provide similar transmission services to the Administrator or to provide such 

services under similar rates, terms, and conditions. 

`(5) The Commission shall not issue any order under section 210, section 211, this section, or section 

213 requiring the Administrator of the Bonneville Power Administration to provide transmission service 

if such an order would impair the Administrator's ability to provide such transmission service to the 

Administrator's power and transmission customers in the Pacific Northwest, as that region is defined in 

section 3(14) of the Pacific Northwest Electric Power Planning and Conservation Act (16 U.S.C. 839a

(14)), as is needed to assure adequate and reliable service to loads in that region. 

`(j) EQUITABILITY WITHIN TERRITORY RESTRICTED ELECTRIC SYSTEMS- With respect to 

an electric utility which is prohibited by Federal law from being a source of power supply, either directly 

or through a distributor of its electric energy, outside an area set forth in such law, no order issued under 

section 211 may require such electric utility (or a distributor of such electric utility) to provide 

transmission services to another entity if the electric energy to be transmitted will be consumed within 

the area set forth in such Federal law, unless the order is in furtherance of a sale of electric energy to that 

electric utility: Provided, however, That the foregoing provision shall not apply to any area served at 

retail by an electric transmission system which was such a distributor on the date of enactment of this 

subsection and which before October 1, 1991, gave its notice of termination under its power supply 

contract with such electric utility. 

`(k) ERCOT UTILITIES- 

`(1) RATES- Any order under section 211 requiring provision of transmission services in whole or 

in part within ERCOT shall provide that any ERCOT utility which is not a public utility and the 

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transmission facilities of which are actually used for such transmission service is entitled to 

receive compensation based, insofar as practicable and consistent with subsection (a), on the 

transmission ratemaking methodology used by the Public Utility Commission of Texas. 

`(2) DEFINITIONS- For purposes of this subsection-- 

`(A) the term `ERCOT' means the Electric Reliability Council of Texas; and 

`(B) the term `ERCOT utility' means a transmitting utility which is a member of ERCOT.'. 

SEC. 723. INFORMATION REQUIREMENTS. 

Part II of the Federal Power Act is amended by adding the following new section after section 212: 

`SEC. 213. INFORMATION REQUIREMENTS. 

`(a) REQUESTS FOR WHOLESALE TRANSMISSION SERVICES- Whenever any electric utility, 

Federal power marketing agency, or any other person generating electric energy for sale for resale makes 

a good faith request to a transmitting utility to provide wholesale transmission services and requests 

specific rates and charges, and other terms and conditions, unless the transmitting utility agrees to 

provide such services at rates, charges, terms and conditions acceptable to such person, the transmitting 

utility shall, within 60 days of its receipt of the request, or other mutually agreed upon period, provide 

such person with a detailed written explanation, with specific reference to the facts and circumstances of 

the request, stating (1) the transmitting utility's basis for the proposed rates, charges, terms, and 

conditions for such services, and (2) its analysis of any physical or other constraints affecting the 

provision of such services. 

`(b) TRANSMISSION CAPACITY AND CONSTRAINTS- Not later than 1 year after the enactment of 

this section, the Commission shall promulgate a rule requiring that information be submitted annually to 

the Commission by transmitting utilities which is adequate to inform potential transmission customers, 

State regulatory authorities, and the public of potentially available transmission capacity and known 

constraints.'. 

SEC. 724. SALES BY EXEMPT WHOLESALE GENERATORS. 

Part II of the Federal Power Act is amended by adding the following new section after section 213: 

`SEC. 214. SALES BY EXEMPT WHOLESALE GENERATORS. 

`No rate or charge received by an exempt wholesale generator for the sale of electric energy shall be 

lawful under section 205 if, after notice and opportunity for hearing, the Commission finds that such rate 

or charge results from the receipt of any undue preference or advantage from an electric utility which is 

an associate company or an affiliate of the exempt wholesale generator. For purposes of this section, the 

terms `associate company' and `affiliate' shall have the same meaning as provided in section 2(a) of the 

Public Utility Holding Company Act of 1935.'. 

SEC. 725. PENALTIES. 

(a) EXISTING PENALTIES NOT APPLICABLE TO TRANSMISSION PROVISIONS- Sections 315 

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and 316 of the Federal Power Act are each amended by adding the following at the end thereof: 

`(c) This subsection shall not apply in the case of any provision of section 211, 212, 213, or 214 or any 

rule or order issued under any such provision.'. 

(b) PENALTIES APPLICABLE TO TRANSMISSION PROVISIONS- Title III of the Federal Power 

Act is amended by inserting the following new section after section 316: 

`SEC. 316A. ENFORCEMENT OF CERTAIN PROVISIONS. 

`(a) VIOLATIONS- It shall be unlawful for any person to violate any provision of section 211, 212, 213, 

or 214 or any rule or order issued under any such provision. 

`(b) CIVIL PENALTIES- Any person who violates any provision of section 211, 212, 213, or 214 or any 

provision of any rule or order thereunder shall be subject to a civil penalty of not more than $10,000 for 

each day that such violation continues. Such penalty shall be assessed by the Commission, after notice 

and opportunity for public hearing, in accordance with the same provisions as are applicable under 

section 31(d) in the case of civil penalties assessed under section 31. In determining the amount of a 

proposed penalty, the Commission shall take into consideration the seriousness of the violation and the 

efforts of such person to remedy the violation in a timely manner.'. 

SEC. 726. DEFINITIONS. 

(a) ADDITIONAL DEFINITIONS- Section 3 of the Federal Power Act is amended by adding the 

following at the end thereof: 

`(23) TRANSMITTING UTILITY- The term `transmitting utility' means any electric utility, 

qualifying cogeneration facility, qualifying small power production facility, or Federal power 

marketing agency which owns or operates electric power transmission facilities which are used for 

the sale of electric energy at wholesale. 

`(24) WHOLESALE TRANSMISSION SERVICES- The term `wholesale transmission services' 

means the transmission of electric energy sold, or to be sold, at wholesale in interstate commerce. 

`(25) EXEMPT WHOLESALE GENERATOR- The term `exempt wholesale generator' shall have 

the meaning provided by section 32 of the Public Utility Holding Company Act of 1935.'. 

(b) CLARIFICATION OF TERMS- Section 3(22) of the Federal Power Act is amended by inserting `

(including any municipality)' after `State agency'. 

Subtitle C--State and Local Authorities 

SEC. 731. STATE AUTHORITIES. 

Nothing in this title or in any amendment made by this title shall be construed as affecting or intending 

to affect, or in any way to interfere with, the authority of any State or local government relating to 

environmental protection or the siting of facilities. 

TITLE VIII--HIGH-LEVEL RADIOACTIVE WASTE 

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SEC. 801. NUCLEAR WASTE DISPOSAL. 

(a) ENVIRONMENTAL PROTECTION AGENCY STANDARDS- 

(1) PROMULGATION- Notwithstanding the provisions of section 121(a) of the Nuclear Waste 

Policy Act of 1982 (42 U.S.C. 10141(a)), section 161 b. of the Atomic Energy Act of 1954 (42 

U.S.C. 2201(b)), and any other authority of the Administrator of the Environmental Protection 

Agency to set generally applicable standards for the Yucca Mountain site, the Administrator shall, 

based upon and consistent with the findings and recommendations of the National Academy of 

Sciences, promulgate, by rule, public health and safety standards for protection of the public from 

releases from radioactive materials stored or disposed of in the repository at the Yucca Mountain 

site. Such standards shall prescribe the maximum annual effective dose equivalent to individual 

members of the public from releases to the accessible environment from radioactive materials 

stored or disposed of in the repository. The standards shall be promulgated not later than 1 year 

after the Administrator receives the findings and recommendations of the National Academy of 

Sciences under paragraph (2) and shall be the only such standards applicable to the Yucca 

Mountain site. 

(2) STUDY BY NATIONAL ACADEMY OF SCIENCES- Within 90 days after the date of the 

enactment of this Act, the Administrator shall contract with the National Academy of Sciences to 

conduct a study to provide, by not later than December 31, 1993, findings and recommendations 

on reasonable standards for protection of the public health and safety, including-- 

(A) whether a health-based standard based upon doses to individual members of the public 

from releases to the accessible environment (as that term is defined in the regulations 

contained in subpart B of part 191 of title 40, Code of Federal Regulations, as in effect on 

November 18, 1985) will provide a reasonable standard for protection of the health and 

safety of the general public; 

(B) whether it is reasonable to assume that a system for post-closure oversight of the 

repository can be developed, based upon active institutional controls, that will prevent an 

unreasonable risk of breaching the repository's engineered or geologic barriers or increasing 

the exposure of individual members of the public to radiation beyond allowable limits; and 

(C) whether it is possible to make scientifically supportable predictions of the probability 

that the repository's engineered or geologic barriers will be breached as a result of human 

intrusion over a period of 10,000 years. 

(3) APPLICABILITY- The provisions of this section shall apply to the Yucca Mountain site, 

rather than any other authority of the Administrator to set generally applicable standards for 

radiation protection. 

(b) NUCLEAR REGULATORY COMMISSION REQUIREMENTS AND CRITERIA- 

(1) MODIFICATIONS- Not later than 1 year after the Administrator promulgates standards under 

subsection (a), the Nuclear Regulatory Commission shall, by rule, modify its technical 

requirements and criteria under section 121(b) of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 

10141(b)), as necessary, to be consistent with the Administrator's standards promulgated under 

subsection (a). 

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(2) REQUIRED ASSUMPTIONS- The Commission's requirements and criteria shall assume, to 

the extent consistent with the findings and recommendations of the National Academy of Sciences, 

that, following repository closure, the inclusion of engineered barriers and the Secretary's postclosure oversight of the Yucca Mountain site, in accordance with subsection (c), shall be sufficient 

to-- 

(A) prevent any activity at the site that poses an unreasonable risk of breaching the 

repository's engineered or geologic barriers; and 

(B) prevent any increase in the exposure of individual members of the public to radiation 

beyond allowable limits. 

(c) POST-CLOSURE OVERSIGHT- Following repository closure, the Secretary of Energy shall 

continue to oversee the Yucca Mountain site to prevent any activity at the site that poses an unreasonable 

risk of-- 

(1) breaching the repository's engineered or geologic barriers; or 

(2) increasing the exposure of individual members of the public to radiation beyond allowable 

limits. 

SEC. 802. OFFICE OF THE NUCLEAR WASTE NEGOTIATOR. 

(a) EXTENSION- Section 410 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10250) is amended 

by striking `5 years' and inserting `7 years'. 

(b) DEFINITION OF STATE- Section 401 of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10241) 

is amended-- 

(1) by striking `States,' the first place it appears and inserting `States and'; and 

(2) by inserting a period after `District of Columbia' and striking the remainder of the sentence. 

SEC. 803. NUCLEAR WASTE MANAGEMENT PLAN. 

(a) PREPARATION AND SUBMISSION OF REPORT- The Secretary of Energy, in consultation with 

the Nuclear Regulatory Commission and the Environmental Protection Agency, shall prepare and submit 

to the Congress a report on whether current programs and plans for management of nuclear waste as 

mandated by the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10101 et seq.) are adequate for 

management of any additional volumes or categories of nuclear waste that might be generated by any 

new nuclear power plants that might be constructed and licensed after the date of the enactment of this 

Act. The Secretary shall prepare the report for submission to the President and the Congress within 1 

year after the date of the enactment of this Act. The report shall examine any new relevant issues related 

to management of spent nuclear fuel and high-level radioactive waste that might be raised by the 

addition of new nuclear-generated electric capacity, including anticipated increased volumes of spent 

nuclear fuel or high-level radioactive waste, any need for additional interim storage capacity prior to 

final disposal, transportation of additional volumes of waste, and any need for additional repositories for 

deep geologic disposal. 

(b) OPPORTUNITY FOR PUBLIC COMMENT- In preparation of the report required under subsection 

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(a), the Secretary of Energy shall offer members of the public an opportunity to provide information and 

comment and shall solicit the views of the Nuclear Regulatory Commission, the Environmental 

Protection Agency, and other interested parties. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

may be necessary to carry out this section. 

TITLE IX--UNITED STATES ENRICHMENT CORPORATION 

SEC. 901. ESTABLISHMENT OF THE UNITED STATES ENRICHMENT CORPORATION. 

The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is amended by adding at the end the following 

new title: 

`TITLE II--UNITED STATES ENRICHMENT CORPORATION 

`CHAPTER 22--GENERAL PROVISIONS 

`SEC. 1201. DEFINITIONS. 

`For purposes of this title: 

`(1) The term `alternative technologies for uranium enrichment' means technologies to enrich 

uranium by methods other than the gaseous diffusion process. 

`(2) The term `AVLIS' means atomic vapor laser isotope separation technology. 

`(3) The term `Board' means the Board of Directors of the Corporation established under section 

1304. 

`(4) The term `Corporation' means the United States Enrichment Corporation. 

`(5) The term `corrective actions' has the meaning given such term by the Administrator of the 

Environmental Protection Agency under section 3004(u) of the Solid Waste Disposal Act (42 

U.S.C. 6924(u)). 

`(6) The term `decontamination and decommissioning' means those activities, other than response 

actions or corrective actions, undertaken to decontaminate and decommission inactive uranium 

enrichment facilities that have residual radioactive or mixed radioactive and hazardous chemical 

contamination, including depleted tailings. 

`(7) The term `Department' means the Department of Energy. 

`(8) The term `highly enriched uranium' means uranium enriched to 20 percent or more of the 

uranium-235 isotope. 

`(9) The term `low-enriched uranium' means uranium enriched to less than 20 percent of the 

uranium-235 isotope. 

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`(10) The term `releases' has the meaning given the term `release' in section 101(22) of the 

Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 

9601(22)). 

`(11) The term `remedial action' has the meaning given such term in section 101(24) of the 

Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 

9601(24)). 

`(12) The term `response actions' has the meaning given the term `response' in section 101(25) of 

the Comprehensive Environmental Response, Compensation, and Liability Act of 1980 (42 U.S.C. 

9601(25)). 

`(13) The term `Secretary' means the Secretary of Energy. 

`(14) The term `uranium enrichment' means the separation of uranium of a given isotopic content 

into 2 components, 1 having a higher percentage of a fissile isotope and 1 having a lower 

percentage. 

`SEC. 1202. PURPOSES. 

`The Corporation is created for the following purposes: 

`(1) To operate as a business enterprise on a profitable and efficient basis. 

`(2) To maximize the long-term value of the Corporation to the Treasury of the United States. 

`(3) To lease Department uranium enrichment facilities, as needed. 

`(4) To acquire uranium for uranium enrichment, low-enriched uranium for resale, and highly 

enriched uranium for conversion into low-enriched uranium, as needed. 

`(5) To market and sell its enriched uranium and uranium enrichment and related services to-- 

`(A) the Department for governmental purposes; and 

`(B) domestic and foreign persons, as provided in section 1303(6). 

`(6) To conduct research and development as required to meet business objectives for the purposes 

of identifying, evaluating, improving, and testing alternative technologies for uranium enrichment.

`(7) To conduct the business as a self-financing corporation and eliminate the need for Federal 

Government appropriations or sources of Federal financing other than those provided in this title. 

`(8) To help maintain a reliable and economical domestic source of uranium enrichment services. 

`(9) To comply with laws, and regulations promulgated thereunder, to protect the public health, 

safety, and the environment. 

`(10) To continue at all times to meet the objectives of ensuring the Nation's common defense and 

security, including abiding by United States laws and policies concerning special nuclear materials 

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and nonproliferation of atomic weapons and other nonpeaceful uses of atomic energy. 

`(11) To take all other lawful actions in furtherance of these purposes. 

`CHAPTER 23--ESTABLISHMENT, POWERS, AND ORGANIZATION OF 

CORPORATION 

`SEC. 1301. ESTABLISHMENT OF THE CORPORATION. 

`(a) IN GENERAL- There is established a body corporate to be known as the United States Enrichment 

Corporation. 

`(b) GOVERNMENT CORPORATION- The Corporation shall be established as a wholly owned 

Government corporation subject to chapter 91 of title 31, United States Code (commonly referred to as 

the Government Corporation Control Act), except as otherwise provided in this title. 

`(c) FEDERAL AGENCY- The Corporation shall be an agency and instrumentality of the United States. 

`SEC. 1302. CORPORATE OFFICES. 

`The Corporation shall maintain an office for the service of process and papers in the District of 

Columbia, and shall be deemed, for purposes of venue in civil actions, to be a resident thereof. The 

Corporation may establish offices in such other place or places as it may deem necessary or appropriate 

in the conduct of its business. 

`SEC. 1303. POWERS OF THE CORPORATION. 

`In order to accomplish its purposes, the Corporation-- 

`(1) shall, except as provided in this title or applicable Federal law, have all the powers of a private 

corporation incorporated under the District of Columbia Business Corporation Act; 

`(2) shall have the priority of the United States with respect to the payment of debts out of 

bankrupt, insolvent, and decedents' estates; 

`(3) may obtain from the Administrator of General Services the services the Administrator is 

authorized to provide agencies of the United States, on the same basis as those services are 

provided to other agencies of the United States; 

`(4) shall enrich uranium, provide for uranium to be enriched by others, or acquire enriched 

uranium (including low-enriched uranium derived from highly enriched uranium provided under 

section 1408); 

`(5) may conduct, or provide for conducting, those research and development activities related to 

uranium enrichment and related processes and activities the Corporation considers necessary or 

advisable to maintain the Corporation as a commercial enterprise operating on a profitable and 

efficient basis; 

`(6) may enter into transactions regarding uranium, enriched uranium, or depleted uranium with--

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`(A) persons licensed under section 53, 63, 103, or 104 in accordance with the licenses held 

by those persons; 

`(B) persons in accordance with, and within the period of, an agreement for cooperation 

arranged under section 123; or 

`(C) persons otherwise authorized by law to enter into such transactions; 

`(7) may enter into contracts with persons licensed under section 53, 63, 103, or 104, for as long as 

the Corporation considers necessary or desirable, to provide uranium or uranium enrichment and 

related services; 

`(8) may enter into contracts to provide uranium or uranium enrichment and related services in 

accordance with, and within the period of, an agreement for cooperation arranged under section 

123 or as otherwise authorized by law; and 

`(9) shall sell to the Department as provided in this title, without regard to section 57 e., the 

amounts of uranium enrichment and related services that the Department determines from time to 

time are required for it to-- 

`(A) carry out Presidential directions and authorizations under section 91; and 

`(B) conduct other Department programs. 

`SEC. 1304. BOARD OF DIRECTORS. 

`(a) IN GENERAL- The powers of the Corporation are vested in the Board of Directors. 

`(b) APPOINTMENT- The Board of Directors shall consist of 5 individuals, to be appointed by the 

President by and with the advice and consent of the Senate. The President shall designate a Chairman of 

the Board from among members of the Board. 

`(c) QUALIFICATIONS- Members of the Board shall be citizens of the United States. No member of 

the Board shall be an employee of the Corporation or have any direct financial relationship with the 

Corporation other than that of being a member of the Board. 

`(d) TERMS- 

`(1) IN GENERAL- Except as provided in paragraph (2), members of the Board shall serve 5-year 

terms or until the election of a new Board of Directors under section 1704, whichever comes first. 

`(2) INITIAL MEMBERS- Of the members first appointed to the Board-- 

`(A) 1 shall be appointed for a 1-year term; 

`(B) 1 shall be appointed for a 2-year term; 

`(C) 1 shall be appointed for a 3-year term; and 

`(D) 1 shall be appointed for a 4-year term.

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`(3) REAPPOINTMENT- Members of the Board may be reappointed by the President, by and 

with the advice and consent of the Senate. 

`(e) VACANCIES- Upon the occurrence of a vacancy on the Board, the President by and with the advice 

and consent of the Senate shall appoint an individual to fill such vacancy for the remainder of the 

applicable term. 

`(f) MEETINGS AND QUORUM- The Board shall meet at any time pursuant to the call of the 

Chairman and as provided by the bylaws of the Corporation, but not less than quarterly. Three voting 

members of the Board shall constitute a quorum. A majority of the Board shall adopt and from time to 

time may amend bylaws for the operation of the Board. 

`(g) POWERS- The Board shall be responsible for general management of the Corporation and shall 

have the same authority, privileges, and responsibilities as the board of directors of a private corporation 

incorporated under the District of Columbia Business Corporation Act. 

`(h) COMPENSATION- Members of the Board shall serve on a part-time basis and shall receive per 

diem, when engaged in the actual performance of Corporation duties, plus reimbursement for travel, 

subsistence, and other necessary expenses incurred in the performance of their duties. 

`(i) MEMBERSHIP OF SECRETARY OF TREASURY- The President may appoint the Secretary of the 

Treasury or his designee to serve as a member of the Board or as a nonvoting, ex officio member of the 

Board. 

`(j) CONFLICT OF INTEREST REQUIREMENTS- No director, officer, or other management level 

employee of the Corporation may have a financial interest in any customer, contractor, or competitor of 

the Corporation or in any business that may be adversely affected by the success of the Corporation. 

`SEC. 1305. EMPLOYEES OF THE CORPORATION. 

`(a) APPOINTMENT- The Board shall appoint such officers and employees as are necessary for the 

transaction of its business. 

`(b) COMPENSATION, DUTIES, AND REMOVAL- The Board shall, without regard to section 5301 

of title 5, United States Code, fix the compensation of all officers and employees of the Corporation, 

define their duties, and provide a system of organization to fix responsibility and promote efficiency. 

Any officer or employee of the Corporation may be removed in the discretion of the Board. 

`(c) APPLICABLE CRITERIA- The Board shall ensure that the personnel function and organization is 

consistent with the principles of section 2301(b) of title 5, United States Code, relating to merit system 

principles. Officers and employees shall be appointed, promoted, and assigned on the basis of merit and 

fitness, and other personnel actions shall be consistent with the principles of fairness and due process but 

without regard to those provisions of title 5 of the United States Code governing appointments and other 

personnel actions in the competitive service. 

`(d) TREATMENT OF PERSONS EMPLOYED PRIOR TO TRANSITION DATE- Compensation, 

benefits, and other terms and conditions of employment in effect immediately prior to the transition date, 

whether provided by statute or by rules of the Department or the executive branch, shall continue to 

apply to officers and employees who transfer to the Corporation from other Federal employment until 

changed by the Board. 

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`(e) PROTECTION OF EXISTING EMPLOYEES- 

`(1) IN GENERAL- It is the purpose of this subsection to ensure that the establishment of the 

Corporation pursuant to this chapter shall not result in any adverse effects on the employment 

rights, wages, or benefits of employees at facilities that are operated, directly or under contract, in 

the performance of the functions vested in the Corporation. 

`(2) APPLICABILITY OF EXISTING COLLECTIVE BARGAINING AGREEMENT- Any 

employer (including the Corporation) at a facility described in paragraph (1) shall abide by the 

terms of a collective bargaining agreement in effect on April 30, 1991, at each individual facility 

until-- 

`(A) the earlier of the date on which a new bargaining agreement is signed; or 

`(B) the end of the 2-year period beginning on the date of the enactment of this title. 

`(3) APPLICABILITY OF NLRA- Except as specifically provided in this subsection, the 

Corporation is subject to the provisions of the National Labor Relations Act (29 U.S.C. 151 et 

seq.). 

`(4) BENEFITS OF TRANSFEREES AND DETAILEES- At the request of the Board and subject 

to the approval of the Secretary, an employee of the Department may be transferred or detailed as 

provided for in section 1315, to the Corporation without any loss in accrued benefits or standing 

within the Civil Service System. For those employees who accept transfer to the Corporation, it 

shall be their option as to whether to have any accrued retirement benefits transferred to a 

retirement system established by the Corporation or to retain their coverage under either the Civil 

Service Retirement System or the Federal Employees' Retirement System, as applicable, in lieu of 

coverage by the Corporation's retirement system. For those employees electing to remain with one 

of the Federal retirement systems, the Corporation shall withhold pay and make such payments as 

are required under the Federal retirement system. For those Department employees detailed, the 

Department shall offer those employees a position of like grade, compensation, and proximity to 

their official duty station after their services are no longer required by the Corporation. 

`SEC. 1306. AUDITS. 

`(a) INDEPENDENT AUDITS- 

`(1) IN GENERAL- The financial statements of the Corporation shall be prepared in accordance 

with generally accepted accounting principles and shall be audited annually by an independent 

certified public accountant in accordance with auditing standards issued by the Comptroller 

General. Such auditing standards shall be consistent with the private sector's generally accepted 

auditing standards. 

`(2) REVIEW BY GAO- The Comptroller General may review any audit of the Corporation's 

financial statements conducted under paragraph (1). The Comptroller General shall report to the 

Congress and the Corporation the results of any such review and shall include in such report 

appropriate recommendations. 

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`(1) IN GENERAL- The Comptroller General may audit the financial statements of the 

Corporation for any year in the manner provided in subsection (a)(1). 

`(2) REIMBURSEMENT BY CORPORATION- The Corporation shall reimburse the Comptroller 

General for the full cost of any audit conducted under this subsection, as determined by the 

Comptroller General. 

`(c) AVAILABILITY OF BOOKS AND RECORDS- All books, accounts, financial records, reports, 

files, papers, and other property belonging to or in use by the Corporation and its auditor that the 

Comptroller General considers necessary to the performance of any audit or review under this section 

shall be made available to the Comptroller General, subject to section 1314. 

`(d) TREATMENT OF GAO AUDITS- Activities the Comptroller General conducts under this section 

shall be in lieu of any other audit of the financial transactions of the Corporation the Comptroller 

General is required to make under chapter 91 of title 31, United States Code, or other law. 

`SEC. 1307. ANNUAL REPORTS. 

`(a) IN GENERAL- The Corporation shall prepare and submit an annual report of its activities to the 

President and the Congress. This report shall contain-- 

`(1) a general description of the Corporation's operations; 

`(2) a summary of the Corporation's operating and financial performance, including an explanation 

of the decision to pay or not pay dividends; 

`(3) copies of audit reports prepared under section 1305; 

`(4) the information required under regulations issued under section 13 of the Securities Exchange 

Act of 1934 (15 U.S.C. 78m); and 

`(5) an identification and assessment of any impairment of capital or ability of the Corporation to 

comply with this title. 

`(b) DEADLINE- The report shall be completed not later than 150 days following the close of each of 

the Corporation's fiscal years and shall accurately reflect the financial position of the Corporation at 

fiscal year end. 

`SEC. 1308. ACCOUNTS. 

`(a) ESTABLISHMENT OF UNITED STATES ENRICHMENT CORPORATION FUND- There is 

established in the Treasury of the United States a revolving fund, to be known as the `United States 

Enrichment Corporation Fund', which shall be available to the Corporation, without need for further 

appropriation and without fiscal year limitation, for carrying out its purposes, functions, and powers, and 

which shall not be subject to apportionment under subchapter II of chapter 15 of title 31, United States 

Code. 

`(b) TRANSFER OF UNEXPENDED BALANCES- On the transfer date, the Secretary shall, without 

need of further appropriation, transfer to the Corporation the unexpended balance of appropriations and 

other monies available to the Department (inclusive of funds set aside for accounts payable), and 

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accounts receivable which are related to functions and activities acquired by the Corporation from the 

Department pursuant to this title, including all advance payments. 

`SEC. 1309. OBLIGATIONS. 

`(a) ISSUANCE- 

`(1) IN GENERAL- The Corporation may issue and sell bonds, notes, and other evidences of 

indebtedness (collectively referred to in this title as `bonds'), except that the Corporation may not 

issue or sell bonds for the purpose of constructing new uranium enrichment facilities or conducting 

directly related preconstruction activities. Borrowing under this paragraph during any fiscal year 

ending before October 1, 1996, shall be subject to approval in appropriation Acts. 

`(2) USE OF REVENUES- The Corporation may pledge and use its revenues for payment of the 

principal of and interest on its bonds, for their purchase or redemption, and for other purposes 

incidental to these functions, including creation of reserve funds and other funds that may be 

similarly pledged and used. 

`(3) AGREEMENTS WITH HOLDERS AND TRUSTEES- The Corporation may enter into 

binding covenants with the holders and trustees of its bonds with respect to-- 

`(A) the establishment of reserve and other funds; 

`(B) stipulations concerning the subsequent issuance of bonds; and 

`(C) other matters not inconsistent with this title; 

that the Corporation determines necessary or desirable to enhance the marketability of the bonds. 

`(b) NOT OBLIGATIONS OF UNITED STATES- Bonds issued by the Corporation under this section 

shall not be obligations of, or guaranteed as to principal or interest by, the United States, and the bonds 

shall so plainly state. 

`(c) TERMS AND CONDITIONS- 

`(1) NEGOTIABLE; MATURITY- Bonds issued by the Corporation under this section shall be 

negotiable instruments unless otherwise specified in the bond and shall mature not more than 50 

years after their date of issuance. 

`(2) ROLE OF SECRETARY OF THE TREASURY- 

`(A) RIGHT OF DISAPPROVAL- The Corporation may set the terms and conditions of 

bonds issued under this section, subject to disapproval of such terms and conditions by the 

Secretary of the Treasury within 5 days after the Secretary of the Treasury is notified of the 

following terms and conditions of the bonds: 

`(i) Their forms and denominations. 

`(ii) The times, amounts, and prices at which they are sold.

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`(iii) Their rates of interest. 

`(iv) The terms at which they may be redeemed by the Corporation before maturity. 

`(v) The priority of their claims on the Corporation's net revenues with respect to 

principal and interest payments. 

`(vi) Any other terms and conditions. 

`(B) INAPPLICABILITY OF RIGHT TO PRESCRIBE TERMS- Section 9108(a) of title 

31, United States Code, shall not apply to the Corporation. 

`(d) INAPPLICABILITY OF SECURITIES REQUIREMENTS- The Corporation shall be considered an 

executive department of the United States for purposes of section 3(c) of the Securities Exchange Act of 

1934 (15 U.S.C. 78c(c)). 

`(e) INAPPLICABILITY OF FFB- The Corporation shall not issue or sell any bonds to the Federal 

Financing Bank. 

`SEC. 1310. EXEMPTION FROM TAXATION AND PAYMENTS IN LIEU OF TAXES. 

`(a) EXEMPTION FROM TAXATION- In order to render financial assistance to those States and 

localities in which the facilities of the Corporation are located, the Corporation shall, beginning in fiscal 

year 1998, make payments to State and local governments as provided in this section. These payments 

shall be in lieu of any and all State and local taxes on the real and personal property of the Corporation. 

All property of the Corporation is expressly exempted from taxation in any manner or form by any State, 

county, or other local government entity including State, county, or other local government sales tax. 

`(b) PAYMENTS IN LIEU OF TAXES- Beginning in fiscal year 1998, the Corporation shall make 

annual payments, in amounts determined by the Corporation to be fair and reasonable, to the State and 

local governmental agencies having tax jurisdiction in any area where facilities of the Corporation are 

located. In making these determinations, the Corporation shall be guided by the following criteria: 

`(1) The Corporation shall take into account the customs and practices prevailing in the area with 

respect to appraisal, assessment, and classification of industrial property and any special 

considerations extended to large-scale industrial operations. 

`(2) The payment made to any taxing authority for any period shall not be less than the payments 

that would have been made to the taxing authority for the same period by the Department and its 

cost-type contractors on behalf of the Department with respect to property that has been 

transferred to the Corporation under section 1404 and that would have been attributable to the 

ownership, management, operation, and maintenance of the Department's uranium enrichment 

facilities, applying the laws and policies prevailing immediately prior to the transition date. 

`(c) TIME OF PAYMENTS- Payments shall be made by the Corporation at the time when payments of 

taxes by taxpayers to each taxing authority are due and payable. 

`(d) DETERMINATION OF AMOUNT DUE- The determination by the Corporation of the amounts due 

under this section shall be final and conclusive.

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`SEC. 1311. COOPERATION WITH OTHER AGENCIES. 

`The Corporation may request to use on a reimbursable basis the available services, equipment, 

personnel, and facilities of agencies of the United States, and on a similar basis may cooperate with such 

agencies in the establishment and use of services, equipment, and facilities of the Corporation. Further, 

the Corporation may confer with and avail itself of the cooperation, services, records, and facilities of 

State, territorial, municipal, or other local agencies. 

`SEC. 1312. APPLICABILITY OF CERTAIN FEDERAL LAWS. 

`(a) ANTITRUST LAWS- The Corporation shall conduct its activities in a manner consistent with the 

policies expressed in the following antitrust laws: 

`(1) The Sherman Act (15 U.S.C. 1-7). 

`(2) The Clayton Act (15 U.S.C. 12-27). 

`(3) Sections 73 and 74 of the Wilson Tariff Act (15 U.S.C. 8 and 9). 

`(b) ENVIRONMENTAL LAWS- The Corporation shall be subject to, and comply with, all Federal and 

State, interstate, and local environmental laws and requirements, both substantive and procedural, in the 

same manner, and to the same extent, as any person who is subject to such laws and requirements. For 

purposes of enforcing any such law or substantive or procedural requirements (including any injunctive 

relief, administrative order, or civil or administrative penalty or fine) against the Corporation, the United 

States expressly waives any immunity otherwise applicable to the Corporation. For the purposes of this 

subsection, the term `person' means an individual, trust, firm, joint stock company, corporation, 

partnership, association, State, municipality, or political subdivision of a State. 

`(c) OSHA REQUIREMENTS- Notwithstanding sections 3(5), 4(b)(1), and 19 of the Occupational 

Safety and Health Act of 1970 (29 U.S.C. 652(5), 653(b)(1), and 668)), the Corporation shall be subject 

to, and comply with, such Act and all regulations and standards promulgated thereunder in the same 

manner, and to the same extent, as an employer is subject to such Act. For the purposes of enforcing 

such Act (including any injunctive relief, administrative order, or civil, administrative, or criminal 

penalty or fine) against the Corporation, the United States expressly waives any immunity otherwise 

applicable to the Corporation. 

`(d) LABOR STANDARDS- The Act of March 3, 1931 (known as the Davis-Bacon Act) (40 U.S.C. 

276a et seq.) and the Service Contract Act of 1965 (41 U.S.C. 351 et seq.) shall apply to the Corporation. 

All laborers and mechanics employed on the construction, alteration, or repair of projects funded, in 

whole or in part, by the Corporation shall be paid wages at rates not less than those prevailing on projects 

of a similar character in the locality as determined by the Secretary of Labor in accordance with such Act 

of March 3, 1931. The Secretary of Labor shall have, with respect to the labor standards specified in this 

subsection, the authority and functions set forth in Reorganization Plan Numbered 14 of 1950 (15 F.R. 

3176, 64 Stat. 1267) and the Act of June 13, 1934 (40 U.S.C. 276c). 

`(e) ENERGY REORGANIZATION ACT REQUIREMENTS- The Corporation is subject to the 

provisions of section 210 of the Energy Reorganization Act of 1974 (42 U.S.C. 5850) to the same extent 

as an employer subject to such section, and, with respect to the operation of the facilities leased by the 

Corporation, section 206 of the Energy Reorganization Act of 1974 (42 U.S.C. 5846) shall apply to the 

directors and officers of the Corporation.

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`(f) EXEMPTION FROM FEDERAL PROPERTY REQUIREMENTS- The Corporation shall not be 

subject to the Federal Property and Administrative Services Act of 1949 (41 U.S.C. 471 et seq.). 

`SEC. 1313. SECURITY. 

`Any references to the term `Commission' or to the Department in sections 161k., 221a., and 230 shall be 

considered to include the Corporation. 

`SEC. 1314. CONTROL OF INFORMATION. 

`(a) IN GENERAL- Except as provided in subsection (b), the Corporation may protect trade secrets and 

commercial or financial information to the same extent as a privately owned corporation. 

`(b) OTHER APPLICABLE LAWS- Section 552(d) of title 5, United States Code, shall apply to the 

Corporation, and such information shall be subject to the applicable provisions of law protecting the 

confidentiality of trade secrets and business and financial information, including section 1905 of title 18, 

United States Code. 

`SEC. 1315. TRANSITION. 

`(a) TRANSITION MANAGER- Within 30 days after the date of the enactment of this title, the 

President shall appoint a Transition Manager, who shall serve at the pleasure of the President until a 

quorum of the Board has been appointed and confirmed in accordance with section 1304. 

`(b) POWERS- 

`(1) IN GENERAL- Until a quorum of the Board has qualified, the Transition Manager shall 

exercise the powers and duties of the Board and shall be responsible for taking all actions needed 

to effect the transfer of the uranium enrichment enterprise from the Secretary to the Corporation on 

the transition date. 

`(2) CONTINUATION UNTIL BOARD HAS QUORUM- In the event that a quorum of the Board 

has not qualified by the transition date, the Transition Manager shall continue to exercise the 

powers and duties of the Board until a quorum has qualified. 

`(c) RATIFICATION OF TRANSITION MANAGER'S ACTIONS- All actions taken by the Transition 

Manager before the qualification of a quorum of the Board shall be subject to ratification by the Board. 

`(d) RESPONSIBILITIES OF SECRETARY- Before the transition date, the Secretary shall-- 

`(1) continue to be responsible for the management and operation of the uranium enrichment 

plants; 

`(2) provide funds, to the extent provided in appropriations Acts, to the Transition Manager to pay 

salaries and expenses; 

`(3) delegate Department employees to assist the Transition Manager in meeting his 

responsibilities under this section; and

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`(4) assist and cooperate with the Transition Manager in preparing for the transfer of the uranium 

enrichment enterprise to the Corporation on the transition date. 

`(e) TRANSITION DATE- The transition date shall be July 1, 1993. 

`(f) DETAIL OF PERSONNEL- For the purpose of continuity of operations, maintenance, and authority, 

the Department shall detail, for up to 18 months after the date of the enactment of this title, appropriate 

Department personnel as may be required in an acting capacity, until such time as a Board is confirmed 

and top officers of the Corporation are hired. The Corporation shall reimburse the Department and its 

contractors for the detail of such personnel. 

`SEC. 1316. WORKING CAPITAL ACCOUNT. 

`There shall be established within the Corporation a Working Capital Account in which the Corporation 

may retain all revenue necessary for legitimate business expenses, or investments, related to carrying out 

its purposes. 

`CHAPTER 24--RIGHTS, PRIVILEGES, AND ASSETS OF THE CORPORATION 

`SEC. 1401. MARKETING AND CONTRACTING AUTHORITY. 

`(a) EXCLUSIVE MARKETING AGENT- The Corporation shall act as the exclusive marketing agent 

on behalf of the United States Government for entering into contracts for providing enriched uranium 

(including low-enriched uranium derived from highly enriched uranium) and uranium enrichment and 

related services. The Department may not market enriched uranium (including low-enriched uranium 

derived from highly enriched uranium), or uranium enrichment and related services, after the transition 

date. 

`(b) TRANSFER OF CONTRACTS- 

`(1) IN GENERAL- Except as provided in paragraph (2), all contracts, agreements, and leases with 

the Department, including all uranium enrichment contracts and power purchase contracts, that 

have been executed by the Department before the transition date and that relate to uranium 

enrichment and related services shall transfer to the Corporation. 

`(2) EXCEPTIONS- 

`(A) TVA SETTLEMENT- The rights and responsibilities of the Department under the 

settlement agreement with the Tennessee Valley Authority, filed on December 18, 1987, 

with the United States Claims Court, shall not transfer to the Corporation. 

`(B) NONTRANSFERABLE POWER CONTRACTS- If the Secretary determines that a 

power purchase contract executed by the Department prior to the transition date cannot be 

transferred under its terms, the Secretary may continue to receive power under the contract 

and resell such power to the Corporation at cost. 

`(C) NONPOWER APPLICATIONS- Contracts for enriched uranium and uranium services 

in existence as of the date of the enactment of this title for research and development or 

other nonpower applications shall remain with the Department. At the request of the 

Department, the Corporation, in consultation with the Department, may enter into such 

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contracts it determines to be appropriate. 

`SEC. 1402. PRICING. 

`(a) SERVICES PROVIDED TO COMMERCIAL CUSTOMERS- The Corporation shall establish 

prices for its products, materials, and services provided to customers other than the Department on a 

basis that will allow it to attain the normal business objectives of a profitmaking corporation. 

`(b) SERVICES PROVIDED TO DOE- The Corporation shall charge prices to the Department for 

uranium enrichment services provided under section 1303(9) on a basis that will allow it to recover its 

costs, on a yearly basis, for providing products, materials, and services, and provide for a reasonable 

profit. 

`SEC. 1403. LEASING OF GASEOUS DIFFUSION FACILITIES OF DEPARTMENT. 

`(a) IN GENERAL- The Corporation shall lease the Paducah Gaseous Diffusion Plant in Paducah, 

Kentucky, the Portsmouth Gaseous Diffusion Plant in Piketon, Ohio, and related property of the 

Department, for a period of 6 years from the transition date. Thereafter, the Corporation shall have the 

exclusive option to lease such facilities and related property for additional periods. 

`(b) TERMS OF LEASE- The Corporation and the Department shall set mutually agreeable terms for a 

lease under subsection (a), including specifying annual payments to the Department by the Corporation 

to be made. The amount of annual payments shall be equal to the cost incurred by the Department in 

administering the lease and providing services related to the lease to the Corporation (excluding 

depreciation and imputed interest on original plant investments in the Department's gaseous diffusion 

plants and costs under subsection (d)). 

`(c) EXCLUSION OF FACILITIES FOR PRODUCTION OF HIGHLY ENRICHED URANIUMSubsection (a) shall not apply to Department facilities necessary for the production of highly enriched 

uranium. The Secretary may grant to the Corporation access to such facilities for purposes other than the 

production of highly enriched uranium. 

`(d) DOE RESPONSIBILITY FOR PREEXISTING CONDITIONS- The payment of any costs of 

decontamination and decommissioning, response actions, or corrective actions with respect to conditions 

existing before the transition date, in connection with property of the Department leased under 

subsection (a), shall remain the sole responsibility of the Department. 

`(e) ENVIRONMENTAL AUDIT- The Secretary, in consultation with the Administrator of the 

Environmental Protection Agency, shall conduct a comprehensive environmental audit identifying 

environmental conditions that will remain the responsibility of the Department pursuant to subsection (d) 

after the transition date. Such audit shall be completed no later than the transition date. 

`(f) TREATMENT UNDER PRICE-ANDERSON PROVISIONS- Any lease executed between the 

Secretary and the Corporation under this section shall be deemed to be a contract for purposes of section 

170 d. 

`(g) WAIVER OF EIS REQUIREMENT- The execution of the lease by the Corporation and the 

Department shall not be considered a major Federal action significantly affecting the quality of the 

human environment for purposes of section 102 of the National Environmental Policy Act of 1969 (42 

U.S.C. 4332). 

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`SEC. 1404. CAPITAL STRUCTURE OF CORPORATION. 

`(a) CAPITAL STOCK- 

`(1) ISSUANCE TO SECRETARY OF THE TREASURY- The Corporation shall issue capital 

stock representing an equity investment equal to the greater of-- 

`(A) $3,000,000,000; or 

`(B) the book value of assets transferred to the Corporation, as reported in the Uranium 

Enrichment Annual Report for fiscal year 1991, modified to reflect continued depreciation 

and other usual changes that occur up to the transfer date. 

The Secretary of the Treasury shall hold such stock for the United States, except that all rights and 

duties pertaining to management of the Corporation shall remain vested in the Board. 

`(2) RESTRICTION ON TRANSFERS OF STOCK BY UNITED STATES- The capital stock of 

the Corporation shall not be sold, transferred, or conveyed by the United States, except to carry out 

the privatization of the Corporation under section 1502. 

`(3) ANNUAL ASSESSMENT- The Secretary of the Treasury shall annually assess the value of 

the stock held by the Secretary under paragraph (1) and submit to the Congress a report setting 

forth such value. The annual assessment of the Secretary shall be subject to review by an 

independent auditor. 

`(b) PAYMENT OF DIVIDENDS- The Corporation shall pay into miscellaneous receipts of the 

Treasury of the United States or such other fund as is provided by law, dividends on the capital stock, 

out of earnings of the Corporation, as a return on the investment represented by such stock. Until 

privatization occurs under section 1502, the Corporation shall pay as dividends to the Treasury of the 

United States all net revenues remaining at the end of each fiscal year not required for operating 

expenses or for deposit into the Working Capital Account established in section 1316. 

`(c) PROHIBITION ON ADDITIONAL FEDERAL ASSISTANCE- Except as otherwise specifically 

provided in this title, the Corporation shall receive no appropriations, loans, or other financial assistance 

from the Federal Government. 

`(d) SOLE RECOVERY OF UNRECOVERED COSTS- Receipt by the United States of the proceeds 

from the sale of stock issued by the Corporation under subsection (a)(1), and the dividends paid under 

subsection (b), shall constitute the sole recovery by the United States of previously unrecovered costs 

(including depreciation and imputed interest on original plant investments in the Department's gaseous 

diffusion plants) that have been incurred by the United States for uranium enrichment activities prior to 

the transition date. 

`SEC. 1405. PATENTS AND INVENTIONS. 

`The Corporation may at any time apply to the Department for a patent license for the use of an 

invention or discovery useful in the production or utilization of special nuclear material or atomic energy 

covered by a patent when the patent has not been declared to be affected with the public interest under 

section 153 a. and when use of the patent is within the Corporation's authority. An application shall 

constitute an application under section 153 c. subject to section 153 c., d., e., f., g., and h. 

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`SEC. 1406. LIABILITIES. 

`(a) LIABILITIES BASED ON OPERATIONS BEFORE TRANSITION- Except as otherwise provided 

in this title, all liabilities attributable to operation of the uranium enrichment enterprise before the 

transition date shall remain direct liabilities of the Department. 

`(b) JUDGMENTS BASED ON OPERATIONS BEFORE TRANSITION- Any judgment entered 

against the Corporation imposing liability arising out of the operation of the uranium enrichment 

enterprise before the transition date shall be considered a judgment against and shall be payable solely by 

the Department. 

`(c) REPRESENTATION- With regard to any claim seeking to impose liability under subsection (a) or 

(b), the United States shall be represented by the Department of Justice. 

`(d) JUDGMENTS BASED ON OPERATIONS AFTER TRANSITION- Any judgment entered against 

the Corporation arising from operations of the Corporation on or after the transition date shall be payable 

solely by the Corporation from its own funds. The Corporation shall not be considered a Federal agency 

for purposes of chapter 171 of title 28, United States Code. 

`SEC. 1407. TRANSFER OF URANIUM INVENTORIES. 

`The Secretary shall transfer to the Corporation without charge all raw and low-enriched uranium 

inventories of the Department necessary for the fulfillment of contracts transferred under section 1401

(b). 

`SEC. 1408. PURCHASE OF HIGHLY ENRICHED URANIUM FROM FORMER SOVIET UNION. 

`(a) IN GENERAL- The Corporation is authorized to negotiate the purchase of all highly enriched 

uranium made available by any State of the former Soviet Union under a government-to-government 

agreement or shall assume the obligations of the Department under any contractual agreement that has 

been reached with any such State or any private entity before the transition date. The Corporation may 

only purchase this material so long as the quality of the material can be made suitable for use in 

commercial reactors. 

`(b) ASSESSMENT OF POTENTIAL USE- The Corporation shall prepare an assessment of the 

potential use of highly enriched uranium in the business operations of the Corporation. 

`(c) PLAN FOR BLENDING AND CONVERSION- In the event that the agreement under subsection 

(a) provides for the Corporation to provide for the blending and conversion the assessment shall include 

a plan for such blending and conversion. The plan shall determine the least-cost approach to providing 

blending and conversion services, compatible with environmental, safety, security, and nonproliferation 

requirements. The plan shall include a competitive process that the Corporation shall use for selecting a 

provider of such services, including the public solicitation of proposals from the private sector to allow a 

determination of the least-cost approach. 

`(d) MINIMIZATION OF IMPACT ON DOMESTIC INDUSTRIES- The Corporation shall seek to 

minimize the impact on domestic industries (including uranium mining) of the sale of low-enriched 

uranium derived from highly enriched uranium. 

`CHAPTER 25--PRIVATIZATION OF THE CORPORATION

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`SEC. 1501. STRATEGIC PLAN FOR PRIVATIZATION. 

`(a) IN GENERAL- Within 2 years after the transition date, the Corporation shall prepare a strategic plan 

for transferring ownership of the Corporation to private investors. The Corporation shall revise the plan 

as needed. 

`(b) CONSIDERATION OF ALTERNATIVE MEANS OF TRANSFERRING OWNERSHIP- The plan 

shall include consideration of alternative means for transferring ownership of the Corporation to private 

investors, including public stock offering, private placement, or merger or acquisition. The plan may call 

for the phased transfer of ownership or for complete transfer at a single point of time. If the plan calls for 

phased transfer of ownership, then-- 

`(1) privatization shall be deemed to occur when 100 percent of ownership has been transferred to 

private investors; 

`(2) prior to privatization, such stock shall be nonvoting stock; and 

`(3) at the time of privatization, such stock shall convert to voting stock. 

`(c) EVALUATION AND RECOMMENDATION- The plan shall evaluate the relative merits of the 

alternatives considered and the estimated return on the Government's investment in the Corporation 

achievable through each alternative. The plan shall include the Corporation's recommendation on its 

preferred means of privatization. 

`(d) TRANSMITTAL- The Corporation shall transmit copies of the strategic plan for privatization to the 

President and Congress upon completion. 

`SEC. 1502. PRIVATIZATION. 

`(a) IMPLEMENTATION- Subsequent to transmitting a plan for privatization pursuant to section 1501, 

and subject to subsections (b) and (c), the Corporation may implement the privatization plan if the 

Corporation determines, in consultation with appropriate agencies of the United States, that privatization 

will-- 

`(1) result in a return to the United States at least equal to the net present value of the Corporation; 

`(2) not result in the Corporation being owned, controlled, or dominated by an alien, a foreign 

corporation, or a foreign government; 

`(3) not be inimical to the health and safety of the public or the common defense and security; and 

`(4) provide reasonable assurance that adequate enrichment capacity will remain available to meet 

the domestic electric utility industry. 

`(b) REQUIREMENT OF PRESIDENTIAL APPROVAL- The Corporation may not implement the 

privatization plan without the approval of the President. 

`(c) NOTIFICATION OF CONGRESS AND GAO EVALUATION- The Corporation shall notify the 

Congress of its intent to implement the privatization plan. Within 30 days of notification, the 

Comptroller General shall submit a report to Congress evaluating the extent to which-- 

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`(1) the privatization plan would result in any ongoing obligation or undue cost to the Federal 

Government; and 

`(2) the revenues gained by the Federal Government under the privatization plan would represent 

at least the net present value of the Corporation. 

`(d) PERIOD FOR CONGRESSIONAL REVIEW- The Corporation may not implement the 

privatization plan less than 60 days after notification of the Congress. 

`(e) DEPOSIT OF PROCEEDS- Proceeds from the sale of capital stock of the Corporation under this 

section shall be deposited in the general fund of the Treasury. 

`CHAPTER 26--AVLIS AND ALTERNATIVE TECHNOLOGIES FOR URANIUM 

ENRICHMENT 

`SEC. 1601. ASSESSMENT BY UNITED STATES ENRICHMENT CORPORATION. 

`(a) IN GENERAL- The Corporation shall prepare an assessment of the economic viability of 

proceeding with the commercialization of AVLIS and alternative technologies for uranium enrichment in 

accordance with this chapter. The assessment shall include-- 

`(1) an evaluation of market conditions together with a marketing strategy; 

`(2) an analysis of the economic viability of competing enrichment technologies; 

`(3) an identification of predeployment and capital requirements for the commercialization of 

AVLIS and alternative technologies for uranium enrichment; 

`(4) an estimate of potential earnings from the licensing of AVLIS and alternative technologies for 

uranium enrichment to a private government sponsored corporation; 

`(5) an analysis of outstanding and potential patent and related claims with respect to AVLIS and 

alternative technologies for uranium enrichment, and a plan for resolving such claims; and 

`(6) a contingency plan for providing enriched uranium and related services in the event that 

deployment of AVLIS and alternative technologies for uranium enrichment is determined not to be 

economically viable. 

`(b) DETERMINATION BY CORPORATION TO PROCEED WITH COMMERCIALIZATION OF 

AVLIS OR ALTERNATIVE TECHNOLOGIES FOR URANIUM ENRICHMENT- The succeeding 

sections of this chapter shall apply only to the extent the Corporation determines in its business 

judgment, on the basis of the assessment prepared under subsection (a), to proceed with the 

commercialization of AVLIS or alternative technologies for uranium enrichment. 

`SEC. 1602. TRANSFER OF RIGHTS AND PROPERTY TO UNITED STATES ENRICHMENT 

CORPORATION. 

`(a) EXCLUSIVE RIGHT TO COMMERCIALIZE- The Corporation shall have the exclusive 

commercial right to deploy and use any AVLIS patents, processes, and technical information owned or 

controlled by the Government, upon completion of a royalty agreement with the Department.

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`(b) TRANSFER OF RELATED PROPERTY TO CORPORATION- 

`(1) IN GENERAL- To the extent requested by the Corporation, the President shall transfer 

without charge to the Corporation all of the Department's right, title, or interest in and to property 

owned by the Department, or by the United States but under control or custody of the Department, 

that is directly related to and materially useful in the performance of the Corporation's purposes 

regarding AVLIS and alternative technologies for uranium enrichment, including-- 

`(A) facilities, equipment, and materials for research, development, and demonstration 

activities; and 

`(B) all other facilities, equipment, materials, processes, patents, technical information of 

any kind, contracts, agreements, and leases. 

`(2) EXCEPTION- Facilities, real estate, improvements, and equipment related to the gaseous 

diffusion, and gas centrifuge, uranium enrichment programs of the Department shall not transfer 

under paragraph (1)(B). 

`(3) EXPIRATION OF TRANSFER AUTHORITY- The President's authority to transfer property 

under this subsection shall expire upon privatization under section 1502. 

`(c) LIABILITY FOR PATENT AND RELATED CLAIMS- With respect to any right, title, or interest 

provided to the Corporation under subsection (a) or (b), the Corporation shall have sole liability for any 

payments made or awards under section 157 b. (3), or any settlements or judgments involving claims for 

alleged patent infringement. Any royalty agreement under subsection (a) shall provide for a reduction of 

royalty payments to the Department to offset any payments, awards, settlements, or judgments under this 

subsection. 

`SEC. 1603. PREDEPLOYMENT ACTIVITIES BY UNITED STATES ENRICHMENT 

CORPORATION. 

`The Corporation may begin activities necessary to prepare AVLIS or alternative technologies for 

uranium enrichment for commercialization including-- 

`(1) completion of preapplication activities with the Nuclear Regulatory Commission; 

`(2) preparation of a transition plan to move AVLIS or alternative technologies for uranium 

enrichment from the laboratory to the marketplace; 

`(3) confirmation of technical performance; 

`(4) validation of economic projections; 

`(5) completion of feasibility and risk studies; 

`(6) initiation of preliminary plant design and engineering; and 

`(7) site selection, site characterization, and environmental documentation activities on the basis of 

site evaluations and recommendations prepared for the Department by the Argonne National 

Laboratory. 

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`SEC. 1604. UNITED STATES ENRICHMENT CORPORATION SPONSORSHIP OF PRIVATE 

FOR-PROFIT CORPORATION TO CONSTRUCT AVLIS AND ALTERNATIVE TECHNOLOGIES 

FOR URANIUM ENRICHMENT. 

`(a) ESTABLISHMENT- 

`(1) IN GENERAL- If the Corporation determines to proceed with the commercialization of 

AVLIS or alternative technologies for uranium enrichment under this chapter, the Corporation 

may provide for the establishment of a private for-profit corporation, which shall have as its initial 

purpose the construction of a uranium enrichment facility using AVLIS technology or alternative 

technologies for uranium enrichment. 

`(2) PROCESS OF ORGANIZATION- For purposes of the establishment of the private 

corporation under paragraph (1), the Corporation shall appoint not less than 3 persons to be 

incorporators. The incorporators so appointed shall each sign the articles of incorporation and shall 

serve as the initial board of directors until the members of the 1st regular board of directors shall 

have been appointed and elected. Such incorporators shall take whatever actions are necessary or 

appropriate to establish the private corporation, including the filing of articles of incorporation in 

such jurisdiction as the incorporators determine to be appropriate. The incorporators shall also 

develop a plan for the issuance by the private corporation of voting common stock to the public, 

which plan shall be subject to the approval of the Secretary of the Treasury. 

`(b) LEGAL STATUS OF PRIVATE CORPORATION- 

`(1) NOT FEDERAL AGENCY- The private corporation established under subsection (a) shall 

not be an agency, instrumentality, or establishment of the United States Government and shall not 

be a Government corporation or Government controlled corporation. 

`(2) NO RECOURSE AGAINST UNITED STATES- Obligations of the private corporation 

established under subsection (a) shall not be obligations of, or guaranteed as to principal or interest 

by, the Corporation or the United States, and the obligations shall so plainly state. 

`(3) NO CLAIMS COURT JURISDICTION- No action under section 1491 of title 28, United 

States Code, shall be allowable against the United States based on the actions of the private 

corporation established under subsection (a). 

`(c) TRANSACTIONS BETWEEN UNITED STATES ENRICHMENT CORPORATION AND 

PRIVATE CORPORATION- 

`(1) GRANTS FROM USEC- The Corporation may make grants to the private corporation 

established under subsection (a) from amounts available in the AVLIS Commercialization Fund. 

Such grants shall be used by the private corporation to carry out any remaining predeployment 

activity assigned to the private corporation by the Corporation. Such grants may not be used for 

the costs of constructing an AVLIS, or alternative technologies for uranium enrichment, 

production facility or engaging in directly related preconstruction activities (other than such 

assigned predeployment activities). The aggregate amount of such grants shall not exceed 

$364,000,000. 

`(2) LICENSING AGREEMENT- The Corporation shall license to the private corporation 

established under subsection (a) the rights, titles, and interests provided to the Corporation under 

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section 1602. The licensing agreement shall require the private corporation to make periodic 

payments to the Corporation in an amount that is not less than the aggregate amounts paid by the 

Corporation during the period involved under subsections (a) and (c) of section 1602. 

`(3) PURCHASE AGREEMENT- The Corporation may enter into a commitment to purchase all 

enriched uranium produced at an AVLIS, or alternative technologies for uranium enrichment, 

facility of the private corporation established under subsection (a) at a price negotiated by the 2 

corporations that-- 

`(A) provides the private corporation with a reasonable return on its investment; and 

`(B) is less costly than enriched uranium available from other sources. 

`(4) ADDITIONAL ASSISTANCE- The Corporation may provide to the private corporation 

established under subsection (a), on a reimbursable basis, such additional personnel, services, and 

equipment as the 2 corporations may determine to be appropriate. 

`SEC. 1605. AVLIS COMMERCIALIZATION FUND WITHIN UNITED STATES ENRICHMENT 

CORPORATION. 

`(a) ESTABLISHMENT- The Corporation may establish within the Corporation an AVLIS 

Commercialization Fund, which shall consist of not more than $364,000,000 paid into the Fund by the 

Corporation from amounts provided in appropriation Acts for such purposes and from the retained 

earnings of the Corporation. 

`(b) EXPENDITURES FROM FUND- Amounts in the AVLIS Commercialization Fund shall be 

available for-- 

`(1) expenses of the Corporation in preparing the assessment under section 1601; 

`(2) expenses of predeployment activities under section 1603; and 

`(3) grants to the private corporation under section 1604. 

`(c) LIMITATIONS- 

`(1) EXCLUSIVE SOURCE OF FUNDS- The Corporation may not incur any obligation, or 

expend any amount, with respect to AVLIS or alternative technologies for uranium enrichment, 

except from amounts available in the AVLIS Commercialization Fund. 

`(2) UNAVAILABLE FOR CONSTRUCTION COSTS- No amount may be used from the AVLIS 

Commercialization Fund for the costs of constructing an AVLIS, or alternative technologies for 

uranium enrichment, production facility or engaging in directly related preconstruction activities 

(other than activities specified in subsection (b)). 

`(d) AUTHORIZATION OF APPROPRIATIONS- There is authorized to be appropriated $364,000,000 

from the Uranium Enrichment Special Fund for purposes of this section. 

`(e) COST REPORT- On the basis of the assessment under section 1601(a)(3), the Corporation shall 

submit to the Congress a report on the capital requirements for commercialization of AVLIS.

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`SEC. 1606. DEPARTMENT RESEARCH AND DEVELOPMENT ASSISTANCE. 

`If requested by the Corporation, the Secretary shall provide, on a reimbursable basis, research and 

development of AVLIS and alternative technologies for uranium enrichment. 

`SEC. 1607. SITE SELECTION. 

`This chapter shall not prejudice consideration of the site of an existing uranium enrichment facility as a 

candidate site for future expansion or replacement of uranium enrichment capacity through AVLIS or 

alternative technologies for uranium enrichment. Selection of a site for the AVLIS, or alternative 

technologies for uranium enrichment, facility shall be made on a competitive basis, taking into 

consideration economic performance, environmental compatibility, and use of any existing uranium 

enrichment facilities. 

`SEC. 1608. EXCLUSION FROM PRICE-ANDERSON COVERAGE. 

`Section 170 shall not apply to any license under section 53, 63, or 103 for a uranium enrichment facility 

constructed after the date of the enactment of this title.'. 

SEC. 902. CONFORMING AMENDMENTS AND REPEALERS. 

(a) ATOMIC ENERGY ACT OF 1954- 

(1) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is amended-- 

(A) by inserting after `ATOMIC ENERGY ACT OF 1954' the 1st place it appears the 

following: 

`TABLE OF CONTENTS 

`TITLE I--ATOMIC ENERGY'; 

and 

(B) by adding at the end of the table of contents the following: 

`TITLE II--UNITED STATES ENRICHMENT CORPORATION 

`Chapter 22--General Provisions 

`Sec. 1201. Definitions. 

`Sec. 1202. Purposes. 

`Chapter 23--Establishment, Powers, and Organization of Corporation 

`Sec. 1301. Establishment of the Corporation.

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`Sec. 1302. Corporate offices. 

`Sec. 1303. Powers of the Corporation. 

`Sec. 1304. Board of Directors. 

`Sec. 1305. Employees of the Corporation. 

`Sec. 1306. Audits. 

`Sec. 1307. Annual reports. 

`Sec. 1308. Accounts. 

`Sec. 1309. Obligations. 

`Sec. 1310. Exemption from taxation and payments in lieu of taxes. 

`Sec. 1311. Cooperation with other agencies. 

`Sec. 1312. Applicability of certain Federal laws. 

`Sec. 1313. Security. 

`Sec. 1314. Control of information. 

`Sec. 1315. Transition. 

`Sec. 1316. Working Capital Account. 

`Chapter 24--Rights, Privileges, and Assets of the Corporation 

`Sec. 1401. Marketing and contracting authority. 

`Sec. 1402. Pricing. 

`Sec. 1403. Leasing of gaseous diffusion facilities of department. 

`Sec. 1404. Capital structure of Corporation. 

`Sec. 1405. Patents and inventions. 

`Sec. 1406. Liabilities. 

`Sec. 1407. Transfer of uranium inventories. 

`Sec. 1408. Purchase of highly enriched uranium from former Soviet Union. 

`Chapter 25--Privatization of the Corporation

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`Sec. 1501. Strategic plan for privatization. 

`Sec. 1502. Privatization. 

`Chapter 26--AVLIS and Alternative Technologies for Uranium Enrichment 

`Sec. 1601. Assessment by United States Enrichment Corporation. 

`Sec. 1602. Transfer of rights and property to United States Enrichment Corporation. 

`Sec. 1603. Predeployment activities by United States Enrichment Corporation. 

`Sec. 1604. United States Enrichment Corporation sponsorship of private for-profit corporation to 

construct AVLIS and alternative technologies for uranium enrichment. 

`Sec. 1605. AVLIS Commercialization Fund within United States Enrichment Corporation. 

`Sec. 1606. Department research and development assistance. 

`Sec. 1607. Site selection. 

`Sec. 1608. Exclusion from Price-Anderson coverage.'. 

(2) Section 41 a. of the Atomic Energy Act of 1954 (42 U.S.C. 2061(a)) is amended-- 

(A) by striking `or'; 

(B) by striking `pursuant to under this Act' and inserting `under this title'; and 

(C) by striking the period at the end and inserting `; or (3) are owned by the United States 

Enrichment Corporation.'. 

(3) Section 53 c. (1) of the Atomic Energy Act of 1954 (42 U.S.C. 2073(c)(1)) is amended-- 

(A) by striking `grant,' and inserting `or grant'; and 

(B) by striking `or through the provision of production or enrichment services' both places it 

appears. 

(4) Section 161 v. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(v)) is amended to read as 

follows: 

`v. provide services in support of the United States Enrichment Corporation, except that the 

Secretary of Energy shall annually collect payments and other charges from the Corporation 

sufficient to ensure recovery of the costs (excluding depreciation and imputed interest on original 

plant investments in the Department's gaseous diffusion plants and costs under section 1403(d)) 

incurred by the Department of Energy after the date of the enactment of the Energy Policy Act of 

1992 in performing such services;'.

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(5) Section 161 w. of the Atomic Energy Act of 1954 (42 U.S.C. 2201(w)) is amended-- 

(A) by striking the comma after `104 b.' and inserting the following: `, or which operates any 

facility regulated or certified under section 1701 or 1702,'; and 

(B) by inserting `or certificates' after `holders of, such licenses'. 

(6) Section 274 c. (1) of the Atomic Energy Act of 1954 (42 U.S.C. 2021(c)(1)) is amended by 

inserting `or any uranium enrichment facility' before the semicolon at the end. 

(7) Section 318(1) of the Atomic Energy Act of 1954 (42 U.S.C. 2286g(1)) is amended by striking 

`or' at the end of subparagraph (B), by striking the period at the end of subparagraph (C) and 

inserting `; or', and by adding at the end the following new subparagraph: 

`(D) any facility owned by the United States Enrichment Corporation.'. 

(8) The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is amended by inserting before the 

chapter heading for chapter 1 the following new heading: 

`TITLE I--ATOMIC ENERGY'. 

(b) GOVERNMENT CORPORATION CONTROL PROVISIONS- Section 9101(3) of title 31, United 

States Code is amended by adding at the end the following: 

`(N) the Uranium Enrichment Corporation.'. 

(c) ENERGY AND WATER DEVELOPMENT APPROPRIATION ACT, 1988- Section 306 of the 

Energy and Water Development Appropriation Act, 1988 (Pub. L. 100-202; 101 Stat. 1329-126) is 

repealed. 

(d) EXEMPTION FROM DEFICIT CONTROL ACT- Section 255(g)(1)(A) of the Balanced Budget and 

Emergency Deficit Control Act of 1985 (2 U.S.C. 905(g)(1)(A)) is amended by inserting after the item 

relating to the Tennessee Valley Authority fund the following new item: 

`United States Enrichment Corporation;'. 

SEC. 903. RESTRICTIONS ON NUCLEAR EXPORTS. 

(a) FURTHER RESTRICTIONS- 

(1) IN GENERAL- Chapter 11 of the Atomic Energy Act of 1954 (42 U.S.C. 2151 et seq.) is 

amended by adding at the end the following new section: 

`SEC. 134. FURTHER RESTRICTIONS ON EXPORTS- 

`a. The Commission may issue a license for the export of highly enriched uranium to be used as a fuel or 

target in a nuclear research or test reactor only if, in addition to any other requirement of this Act, the 

Commission determines that-- 

`(1) there is no alternative nuclear reactor fuel or target enriched in the isotope 235 to a lesser 

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percent than the proposed export, that can be used in that reactor; 

`(2) the proposed recipient of that uranium has provided assurances that, whenever an alternative 

nuclear reactor fuel or target can be used in that reactor, it will use that alternative in lieu of highly 

enriched uranium; and 

`(3) the United States Government is actively developing an alternative nuclear reactor fuel or 

target that can be used in that reactor. 

`b. As used in this section-- 

`(1) the term `alternative nuclear reactor fuel or target' means a nuclear reactor fuel or target which 

is enriched to less than 20 percent in the isotope U-235; 

`(2) the term `highly enriched uranium' means uranium enriched to 20 percent or more in the 

isotope U-235; and 

`(3) a fuel or target `can be used' in a nuclear research or test reactor if-- 

`(A) the fuel or target has been qualified by the Reduced Enrichment Research and Test 

Reactor Program of the Department of Energy, and 

`(B) use of the fuel or target will permit the large majority of ongoing and planned 

experiments and isotope production to be conducted in the reactor without a large 

percentage increase in the total cost of operating the reactor.'. 

(2) CLERICAL AMENDMENT- The table of contents of the Atomic Energy Act of 1954 is 

amended by adding at the end of the items relating to chapter 11 the following new item: 

`Sec. 134. Further restrictions on exports.'. 

(b) REPORT TO CONGRESS- 

(1) IN GENERAL- Not later than 90 days after the date of the enactment of this Act, the Chairman 

of the Nuclear Regulatory Commission, after consulting with other relevant agencies, shall submit 

to the Congress a report detailing the current disposition of previous United States exports of 

highly enriched uranium, including-- 

(A) their location; 

(B) whether they are irradiated; 

(C) whether they have been used for the purpose stated in their export license; and 

(D) whether they have been used for an alternative purpose and, if so, whether such 

alternative purpose has been explicitly approved by the Commission. 

(2) EXPORTS TO EURATOM- To the maximum extent possible, the report required by 

paragraph (1) shall include-- 

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(A) exports of highly enriched uranium to EURATOM; and 

(B) subsequent retransfers of such material within EURATOM, without regard to the extent 

of United States control over such retransfers. 

SEC. 904. SEVERABILITY. 

If any provision of this title, or the amendments made by this title, or the application of any provision to 

any entity, person, or circumstance, is for any reason adjudged by a court of competent jurisdiction to be 

invalid, the remainder of this title, and the amendments made by this title, or its application shall not be 

affected. 

TITLE X--REMEDIAL ACTION AND URANIUM REVITALIZATION 

Subtitle A--Remedial Action at Active Processing Sites 

SEC. 1001. REMEDIAL ACTION PROGRAM. 

(a) IN GENERAL- Except as provided in subsection (b), the costs of decontamination, 

decommissioning, reclamation, and other remedial action at an active uranium or thorium processing site 

shall be borne by persons licensed under section 62 or 81 of the Atomic Energy Act of 1954 (42 U.S.C. 

2091, 2111) for any activity at such site which results or has resulted in the production of byproduct 

material. 

(b) REIMBURSEMENT- 

(1) IN GENERAL- The Secretary of Energy shall, subject to paragraph (2), reimburse at least 

annually a licensee described in subsection (a) for such portion of the costs described in such 

subsection as are-- 

(A) determined by the Secretary to be attributable to byproduct material generated as an 

incident of sales to the United States; and 

(B) either-- 

(i) incurred by such licensee not later than December 31, 2002; or 

(ii) placed in escrow not later than December 31, 2002, in accordance with a plan for 

subsequent decontamination, decommissioning, reclamation, and other remedial 

action approved by the Secretary. 

(2) AMOUNT- 

(A) TO INDIVIDUAL ACTIVE SITE URANIUM LICENSEES- The amount of 

reimbursement paid to any licensee under paragraph (1) shall be determined by the Secretary 

in accordance with regulations issued pursuant to section 1002 and, for uranium mill tailings 

only, shall not exceed an amount equal to $5.50 multiplied by the dry short tons of 

byproduct material located on the date of the enactment of this Act at the site of the 

activities of such licensee described in subsection (a), and generated as an incident of sales 

to the United States. 

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(B) TO ALL ACTIVE SITE URANIUM LICENSEES- Payments made under paragraph (1) 

to active site uranium licensees shall not in the aggregate exceed $270,000,000. 

(C) TO THORIUM LICENSEES- Payments made under paragraph (1) to the licensee of the 

active thorium site shall not exceed $40,000,000, and may only be made for off-site 

disposal. 

(D) INFLATION ESCALATION INDEX- The amounts in subparagraphs (A), (B), and (C) 

of this paragraph shall be increased annually based upon an inflation index. The Secretary 

shall determine the appropriate index to apply. 

(E) ADDITIONAL REIMBURSEMENT- 

(i) DETERMINATION OF EXCESS- The Secretary shall determine as of July 31, 

2005, whether the amount authorized to be appropriated pursuant to section 1003, 

when considered with the $5.50 per dry short ton limit on reimbursement, exceeds the 

amount reimbursable to the licensees under subsection (b)(2). 

(ii) IN THE EVENT OF EXCESS- If the Secretary determines under clause (i) that 

there is an excess, the Secretary may allow reimbursement in excess of $5.50 per dry 

short ton on a prorated basis at such sites where the costs reimbursable under 

subsection (b)(1) exceed the $5.50 per dry short ton limitation described in paragraph 

(2) of such subsection. 

(3) BYPRODUCT LOCATION- Notwithstanding the requirement of paragraph (2)(A) that 

byproduct material be located at the site on the date of the enactment of this Act, byproduct 

material moved from the site of the Edgemont Mill to a disposal site as the result of the 

decontamination, decommissioning, reclamation, and other remedial action of such mill shall be 

eligible for reimbursement to the extent eligible under paragraph (1). 

SEC. 1002. REGULATIONS. 

Within 180 days of the date of the enactment of this Act, the Secretary shall issue regulations governing 

reimbursement under section 1001. An active uranium or thorium processing site owner shall apply for 

reimbursement hereunder by submitting a request for the amount of reimbursement, together with 

reasonable documentation in support thereof, to the Secretary. Any such request for reimbursement, 

supported by reasonable documentation, shall be approved by the Secretary and reimbursement therefor 

shall be made in a timely manner subject only to the limitations of section 1001. 

SEC. 1003. AUTHORIZATION OF APPROPRIATIONS. 

(a) IN GENERAL- There is authorized to be appropriated $310,000,000 to carry out this subtitle. The 

aggregate amount authorized in the preceding sentence shall be increased annually as provided in section 

1001, based upon an inflation index to be determined by the Secretary. 

(b) SOURCE- Funds described in subsection (a) shall be provided from the Fund established under 

section 1801 of the Atomic Energy Act of 1954. 

SEC. 1004. DEFINITIONS. 

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For purposes of this subtitle: 

(1) The term `active uranium or thorium processing site' means-- 

(A) any uranium or thorium processing site, including the mill, containing byproduct 

material for which a license (issued by the Nuclear Regulatory Commission or its 

predecessor agency under the Atomic Energy Act of 1954, or by a State as permitted under 

section 274 of such Act (42 U.S.C. 2021)) for the production at such site of any uranium or 

thorium derived from ore-- 

(i) was in effect on January 1, 1978; 

(ii) was issued or renewed after January 1, 1978; or 

(iii) for which an application for renewal or issuance was pending on, or after January 

1, 1978; and 

(B) any other real property or improvement on such real property that is determined by the 

Secretary or by a State as permitted under section 274 of the Atomic Energy Act of 1954 (42 

U.S.C. 2021) to be-- 

(i) in the vicinity of such site; and 

(ii) contaminated with residual byproduct material; 

(2) The term `byproduct material' has the meaning given such term in section 11 e. (2) of the 

Atomic Energy Act of 1954, (42 U.S.C. 2014(e)(2)); and 

(3) The term `decontamination, decommissioning, reclamation, and other remedial action' means 

work performed prior to or subsequent to the date of the enactment of this Act which is necessary 

to comply with all applicable requirements of the Uranium Mill Tailings Radiation Control Act of 

1978 (42 U.S.C. 7901 et seq.), or where appropriate, with requirements established by a State that 

is a party to a discontinuance agreement under section 274 of the Atomic Energy Act of 1954 (42 

U.S.C. 2021). 

Subtitle B--Uranium Revitalization 

SEC. 1011. OVERFEED PROGRAM. 

(a) URANIUM PURCHASES- To the maximum extent permitted by sound business practice, the 

Corporation shall purchase uranium in accordance with subsection (b) and overfeed it into the 

enrichment process to reduce the amount of power required to produce the enriched uranium ordered by 

enrichment services customers, taking into account costs associated with depleted tailings. 

(b) USE OF DOMESTIC URANIUM- Uranium purchased by the Corporation for purposes of this 

section shall be of domestic origin and purchased from domestic uranium producers to the extent 

permitted under the General Agreement on Tariffs and Trade and the United States-Canada Free Trade 

Agreement. 

SEC. 1012. NATIONAL STRATEGIC URANIUM RESERVE.

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There is hereby established the National Strategic Uranium Reserve under the direction and control of 

the Secretary. The Reserve shall consist of natural uranium and uranium equivalents contained in 

stockpiles or inventories currently held by the United States for defense purposes. Effective on the date 

of the enactment of this Act and for 6 years thereafter, use of the Reserve shall be restricted to military 

purposes and government research. Use of the Department of Energy's stockpile of enrichment tails 

existing on the date of the enactment of this Act shall be restricted to military purposes for 6 years 

thereafter. 

SEC. 1013. SALE OF REMAINING DOE INVENTORIES. 

The Secretary, after making the transfer required under section 1407 of the Atomic Energy Act of 1954, 

may sell, from time to time, portions of the remaining inventories of raw or low-enriched uranium of the 

Department that are not necessary to national security needs, to the Corporation, at a fair market price. 

Sales under this section may be made only if such sales will not have a substantial adverse impact on the 

domestic uranium mining industry. Proceeds from sales under this subsection shall be deposited into the 

general fund of the United States Treasury. 

SEC. 1014. RESPONSIBILITY FOR THE INDUSTRY. 

(a) CONTINUING SECRETARIAL RESPONSIBILITY- The Secretary shall have a continuing 

responsibility for the domestic uranium industry to encourage the use of domestic uranium. The 

Secretary, in fulfilling this responsibility, shall not use any supervisory authority over the Corporation. 

The Secretary shall report annually to the appropriate committees of Congress on action taken with 

respect to the domestic uranium industry, including action to promote the export of domestic uranium 

pursuant to subsection (b). 

(b) ENCOURAGE EXPORT- The Department, with the cooperation of the Department of Commerce, 

the United States Trade Representative and other governmental organizations, shall encourage the export 

of domestic uranium. Within 180 days after the date of the enactment of this Act, the Secretary shall 

develop recommendations and implement government programs to promote the export of domestic 

uranium. 

SEC. 1015. ANNUAL URANIUM PURCHASE REPORTS. 

(a) IN GENERAL- By January 1 of each year, the owner or operator of any civilian nuclear power 

reactor shall report to the Secretary, acting through the Administrator of the Energy Information 

Administration, for activities of the previous fiscal year-- 

(1) the country of origin and the seller of any uranium or enriched uranium purchased or imported 

into the United States either directly or indirectly by such owner or operator; and 

(2) the country of origin and the seller of any enrichment services purchased by such owner or 

operator. 

(b) CONGRESSIONAL ACCESS- The information provided to the Secretary pursuant to this section 

shall be made available to the Congress by March 1 of each year. 

SEC. 1016. URANIUM INVENTORY STUDY. 

Within 1 year after the date of the enactment of this Act, the Secretary shall submit to the Congress a 

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study and report that includes-- 

(1) a comprehensive inventory of all Government owned uranium or uranium equivalents, 

including natural uranium, depleted tailings, low-enriched uranium, and highly enriched uranium 

available for conversion to commercial use; 

(2) a plan for the conversion of inventories of foreign and domestic highly enriched uranium to 

low-enriched uranium for commercial use; 

(3) an estimation of the potential need of the United States for inventories of highly enriched 

uranium; 

(4) an analysis and summary of technological requirements and costs associated with converting 

highly enriched uranium to low-enriched uranium, including the construction of facilities if 

necessary; 

(5) an estimation of potential net proceeds from the conversion and sale of highly enriched 

uranium; 

(6) recommendations for implementing a plan to convert highly enriched uranium to low-enriched 

uranium; and 

(7) recommendations for the future use and disposition of such inventories. 

SEC. 1017. REGULATORY TREATMENT OF URANIUM PURCHASES. 

(a) ENCOURAGEMENT- The Secretary shall encourage States and utility regulatory authorities to take 

into consideration the achievement of the objectives and purposes of this subtitle, including the national 

need to avoid dependence on imports, when considering whether to allow the owner or operator of any 

electric power plant to recover in its rates and charges to customers any cost of purchase of domestic 

uranium, enriched uranium, or enrichment services from a non-affiliated seller greater than the cost of 

non-domestic uranium, enriched uranium or enrichment services. 

(b) REPORT- Within 1 year after the date of the enactment of this Act, and annually thereafter, the 

Secretary shall report to the Congress on the progress of the Secretary in encouraging actions by State 

regulatory authorities pursuant to subsection (a). Such report shall include detailed information on 

programs initiated by the Secretary to encourage appropriate State regulatory action and 

recommendations, if any, on further action that could be taken by the Secretary, other Federal agencies, 

or the Congress in order to further the purposes of this subtitle. 

(c) SAVINGS PROVISION- This section may not be construed to authorize the Secretary to take any 

action in violation of the General Agreement on Tariffs and Trade or the United States-Canada Free 

Trade Agreement. 

SEC. 1018. DEFINITIONS. 

For purposes of this subtitle: 

(1) The term `Corporation' means the United States Enrichment Corporation established under 

section 1301 of the Atomic Energy Act of 1954, as added by this Act.

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(2) The term `country of origin' means-- 

(A) with respect to uranium, that country where the uranium was mined; 

(B) with respect to enriched uranium, that country where the uranium was mined and 

enriched; or 

(C) with respect to enrichment services, that country where the enrichment services were 

performed. 

(3) The term `domestic origin' refers to any uranium that has been mined in the United States 

including uranium recovered from uranium deposits in the United States by underground mining, 

open-pit mining, strip mining, in situ recovery, leaching, and ion recovery, or recovered from 

phosphoric acid manufactured in the United States. 

(4) The term `domestic uranium producer' means a person or entity who produces domestic 

uranium and who has, to the extent required by State and Federal agencies having jurisdiction, 

licenses and permits for the operation, decontamination, decommissioning, and reclamation of 

sites, structures and equipment. 

(5) The term `non-affiliated' refers to a seller who does not control, and is not controlled by or 

under common control with, the buyer. 

(6) The term `overfeed' means to use uranium in the enrichment process in excess of the amount 

required at the transactional tails assay. 

(7) The term `utility regulatory authority' means any State agency or Federal agency that has 

ratemaking authority with respect to the sale of electric energy by any electric utility or 

independent power producer. For purposes of this paragraph, the terms `electric utility', `State 

agency', `Federal agency', and `ratemaking authority' have the respective meanings given such 

terms in section 3 of the Public Utility Regulatory Policies Act of 1978. 

Subtitle C--Remedial Action at Inactive Processing Sites 

SEC. 1031. URANIUM MILL TAILINGS RADIATION CONTROL ACT EXTENSION. 

Section 112(a) of the Uranium Mill Tailings Radiation Control Act of 1978 (42 U.S.C. 7922(a)) is 

amended by striking `1994' and inserting `1996'. 

TITLE XI--URANIUM ENRICHMENT HEALTH, SAFETY, AND ENVIRONMENT ISSUES 

SEC. 1101. URANIUM ENRICHMENT HEALTH, SAFETY, AND ENVIRONMENT ISSUES. 

The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), as amended by title IX of this Act, is further 

amended by adding at the end of title II the following: 

`CHAPTER 27--LICENSING AND REGULATION OF URANIUM ENRICHMENT 

FACILITIES 

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`SEC. 1701. GASEOUS DIFFUSION FACILITIES. 

`(a) ISSUANCE OF STANDARDS- Within 2 years after the date of the enactment of this title, the 

Nuclear Regulatory Commission shall establish by regulation such standards as are necessary to govern 

the gaseous diffusion uranium enrichment facilities of the Department in order to protect the public 

health and safety from radiological hazard and provide for the common defense and security. 

Regulations promulgated pursuant to this subsection shall, among other things, require that adequate 

safeguards (within the meaning of section 147) are in place. 

`(b) ANNUAL REPORT- 

`(1) IN GENERAL- The Nuclear Regulatory Commission, in consultation with the Department 

and the Environmental Protection Agency, shall report at least annually to the Congress on the 

status of health, safety, and environmental conditions at the gaseous diffusion uranium enrichment 

facilities of the Department. 

`(2) REQUIRED DETERMINATION- Such report shall include a determination regarding 

whether the gaseous diffusion uranium enrichment facilities of the Department are in compliance 

with the standards established under subsection (a) and all applicable laws. 

`(c) CERTIFICATION PROCESS- 

`(1) ESTABLISHMENT- The Nuclear Regulatory Commission shall establish a certification 

process to ensure that the Corporation complies with standards established under subsection (a). 

`(2) ANNUAL APPLICATION FOR CERTIFICATE OF COMPLIANCE- The Corporation shall 

apply at least annually to the Nuclear Regulatory Commission for a certificate of compliance 

under paragraph (1). The Nuclear Regulatory Commission, in consultation with the Environmental 

Protection Agency, shall review any such application and any determination made under 

subsection (b)(2) shall be based on the results of any such review. 

`(3) TREATMENT OF CERTIFICATE OF COMPLIANCE- The requirement for a certificate of 

compliance under paragraph (1) shall be in lieu of any requirement for a license for any gaseous 

diffusion facility of the Department leased by the Corporation. 

`(4) NRC REVIEW- 

`(A) IN GENERAL- The Nuclear Regulatory Commission, in consultation with the 

Environmental Protection Agency, shall review the operations of the Corporation with 

respect to any gaseous diffusion uranium enrichment facilities of the Department leased by 

the Corporation to ensure that public health and safety are adequately protected. 

`(B) ACCESS TO FACILITIES AND INFORMATION- The Corporation and the 

Department shall cooperate fully with the Nuclear Regulatory Commission and the 

Environmental Protection Agency and shall provide the Nuclear Regulatory Commission 

and the Environmental Protection Agency with the ready access to the facilities, personnel, 

and information the Nuclear Regulatory Commission and the Environmental Protection 

Agency consider necessary to carry out their responsibilities under this subsection. A 

contractor operating a Corporation facility for the Corporation shall provide the Nuclear 

Regulatory Commission and the Environmental Protection Agency with ready access to the 

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facilities, personnel, and information of the contractor as the Nuclear Regulatory 

Commission and the Environmental Protection Agency consider necessary to carry out their 

responsibilities under this subsection. 

`(C) LIMITATION- The Nuclear Regulatory Commission shall limit its finding under 

subsection (b)(2) to a determination of whether the facilities are in compliance with the 

standards established under subsection (a). 

`(d) REQUIREMENT FOR OPERATION- The gaseous diffusion uranium enrichment facilities of the 

Department may not be operated by the Corporation unless the Nuclear Regulatory Commission, in 

consultation with the Environmental Protection Agency, makes a determination of compliance under 

subsection (b) or approves a plan prepared by the Department for achieving compliance required under 

subsection (b). 

`SEC. 1702. LICENSING OF OTHER TECHNOLOGIES. 

`(a) IN GENERAL- Corporation facilities using alternative technologies for uranium enrichment, other 

than AVLIS, shall be licensed under sections 53 and 63. 

`(b) COSTS FOR DECONTAMINATION AND DECOMMISSIONING- The Corporation shall provide 

for the costs of decontamination and decommissioning of any Corporation facilities described in 

subsection (a) in accordance with the requirements of the amendments made by section 5 of the Solar, 

Wind, Waste, and Geothermal Power Production Act of 1990. 

`SEC. 1703. REGULATION OF RESTRICTED DATA. 

`The Corporation shall be subject to this Act with respect to the use of, or access to, Restricted Data to 

the same extent as any private corporation. 

`CHAPTER 28--DECONTAMINATION AND DECOMMISSIONING 

`SEC. 1801. URANIUM ENRICHMENT DECONTAMINATION AND DECOMMISSIONING FUND. 

`(a) ESTABLISHMENT- There is established in the Treasury of the United States an account to be 

known as the Uranium Enrichment Decontamination and Decommissioning Fund (referred to in this 

chapter as the `Fund'). The Fund, and any amounts deposited in it, including any interest earned thereon, 

shall be available to the Secretary subject to appropriations for the exclusive purpose of carrying out this 

chapter. 

`(b) ADMINISTRATION- 

`(1) IN GENERAL- The Secretary of the Treasury shall hold the Fund and, after consultation with 

the Secretary, annually report to the Congress on the financial condition and operations of the 

Fund during the preceding fiscal year. 

`(2) INVESTMENTS- The Secretary of the Treasury shall invest amounts contained within the 

Fund in obligations of the United States-- 

`(A) having maturities determined by the Secretary of the Treasury to be appropriate for 

what the Department determines to be the needs of the Fund; and

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`(B) bearing interest at rates determined to be appropriate by the Secretary of the Treasury, 

taking into consideration the current average market yield on outstanding marketable 

obligations of the United States with remaining periods to maturity comparable to these 

obligations. 

`SEC. 1802. DEPOSITS. 

`(a) AMOUNT- The Fund shall consist of deposits in the amount of $480,000,000 per fiscal year (to be 

annually adjusted for inflation using the Consumer Price Index for all-urban consumers published by the 

Department of Labor) as provided in this section. 

`(b) SOURCE- Deposits described in subsection (a) shall be from the following sources: 

`(1) Sums collected pursuant to subsection (c). 

`(2) Appropriations made pursuant to subsection (d). 

`(c) SPECIAL ASSESSMENT- The Secretary shall collect a special assessment from domestic utilities. 

The total amount collected for a fiscal year shall not exceed $150,000,000 (to be annually adjusted for 

inflation using the Consumer Price Index for all-urban consumers published by the Department of 

Labor). The amount collected from each utility pursuant to this subsection for a fiscal year shall be in the 

same ratio to the amount required under subsection (a) to be deposited for such fiscal year as the total 

amount of separative work units such utility has purchased from the Department of Energy for the 

purpose of commercial electricity generation, before the date of the enactment of this title, bears to the 

total amount of separative work units purchased from the Department of Energy for all purposes 

(including units purchased or produced for defense purposes) before the date of the enactment of this 

title. For purposes of this subsection-- 

`(1) a utility shall be considered to have purchased a separative work unit from the Department if 

such separative work unit was produced by the Department, but purchased by the utility from 

another source; and 

`(2) a utility shall not be considered to have purchased a separative work unit from the Department 

if such separative work unit was purchased by the utility, but sold to another source. 

`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the Fund, 

for the period encompassing 15 years after the date of the enactment of this title, such sums as are 

necessary to ensure that the amount required under subsection (a) is deposited for each fiscal year. 

`(e) TERMINATION OF ASSESSMENTS- The collection of amounts under subsection (c) shall cease 

after the earlier of-- 

`(1) 15 years after the date of the enactment of this title; or 

`(2) the collection of $2,250,000,000 (to be annually adjusted for inflation using the Consumer 

Price Index for all-urban consumers published by the Department of Labor) under such subsection.

`(f) CONTINUATION OF DEPOSITS- Except as provided in subsection (e), deposits shall continue to 

be made into the Fund under subsection (d) for the period specified in such subsection. 

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`(g) TREATMENT OF ASSESSMENT- Any special assessment levied under this section on domestic 

utilities for the decontamination and decommissioning of the Department's gaseous diffusion enrichment 

facilities shall be deemed a necessary and reasonable current cost of fuel and shall be fully recoverable in 

rates in all jurisdictions in the same manner as the utility's other fuel cost. 

`SEC. 1803. DEPARTMENT FACILITIES. 

`(a) STUDY BY NATIONAL ACADEMY OF SCIENCES- The National Academy of Sciences shall 

conduct a study and provide recommendations for reducing costs associated with decontamination and 

decommissioning, and shall report its findings to the Congress within 3 years after the date of the 

enactment of this title. Such report shall include a determination of the decontamination and 

decommissioning required for each facility, shall identify alternative methods, using different 

technologies, shall include site-specific surveys of the actual contamination, and shall provide estimated 

costs of those activities. 

`(b) PAYMENT OF DECONTAMINATION AND DECOMMISSIONING COSTS- The costs of all 

decontamination and decommissioning activities of the Department shall be paid from the Fund until 

such time as the Secretary certifies and the Congress concurs, by law, that such activities are complete. 

`(c) PAYMENT OF REMEDIAL ACTION COSTS- The annual cost of remedial action at the 

Department's gaseous diffusion facilities shall be paid from the Fund to the extent the amount available 

in the Fund is sufficient. To the extent the amount in the Fund is insufficient, the Department shall be 

responsible for the cost of remedial action. No provision of this title may be construed to relieve in any 

way the responsibility or liability of the Department for remedial action under applicable Federal and 

State laws and regulations. 

`SEC. 1804. EMPLOYEE PROVISIONS. 

`All laborers and mechanics employed by contractors or subcontractors in the performance of 

decontamination or decommissioning of uranium enrichment facilities of the Department shall be paid 

wages at rates not less than those prevailing on projects of a similar character in the locality as 

determined by the Secretary of Labor in accordance with the Act of March 3, 1931 (known as the DavisBacon Act) (40 U.S.C. 276a et seq.). The Secretary of Labor shall have, with respect to the labor 

standards specified in this section, the authority and functions set forth in Reorganization Plan Numbered 

14 of 1950 (15 F.R. 3176, 64 Stat. 1267) and the Act of June 13, 1934 (40 U.S.C. 276c). This section 

may not be construed to require the contracting out of activities associated with the decontamination or 

decommissioning of uranium enrichment facilities. 

`SEC. 1805. REPORTS TO CONGRESS. 

`Within 3 years after the date of the enactment of this title, and at least once every 3 years thereafter, the 

Secretary shall report to the Congress on progress under this chapter. The 5th report submitted under this 

section shall contain recommendations of the Secretary for the reauthorization of the program and Fund 

under this title.'. 

SEC. 1102. LICENSING OF AVLIS. 

The last sentence of section 11 v. of the Atomic Energy Act of 1954 (42 U.S.C. 2014(v)) is amended to 

read as follows: `Except with respect to the export of a uranium enrichment production facility or the 

construction and operation of a uranium enrichment production facility using Atomic Vapor Laser 

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Isotope Separation technology, such term as used in chapters 10 and 16 shall not include any equipment 

or device (or important component part especially designed for such equipment or device) capable of 

separating the isotopes of uranium or enriching uranium in the isotope 235.'. 

SEC. 1103. TABLE OF CONTENTS. 

The table of contents for title II of the Atomic Energy Act of 1954, as added by title IX of this Act, is 

amended by adding at the end the following: 

`Chapter 27--Licensing and Regulation of Uranium Enrichment Facilities 

`Sec. 1701. Gaseous diffusion facilities. 

`Sec. 1702. Licensing of other technologies. 

`Sec. 1703. Regulation of restricted data. 

`Chapter 28--Decontamination and Decommissioning 

`Sec. 1801. Uranium Enrichment Decontamination and Decommissioning Fund. 

`Sec. 1802. Deposits. 

`Sec. 1803. Department facilities. 

`Sec. 1804. Employee provisions. 

`Sec. 1805. Reports to Congress.'. 

TITLE XII--RENEWABLE ENERGY 

SEC. 1201. PURPOSES. 

The purposes of this title are to promote-- 

(1) increases in the production and utilization of energy from renewable energy resources; 

(2) further advances of renewable energy technologies; and 

(3) exports of United States renewable energy technologies and services. 

SEC. 1202. DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS FOR RENEWABLE 

ENERGY AND ENERGY EFFICIENCY TECHNOLOGIES. 

(a) DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS- Section 6 of the 

Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 U.S.C. 12005) 

is amended to read as follows: 

`SEC. 6. DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS. 

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`(a) PURPOSE- The purpose of this section is to direct the Secretary to further the commercialization of 

renewable energy and energy efficiency technologies through a five-year program. 

`(b) DEMONSTRATION AND COMMERCIAL APPLICATION PROJECTS- 

`(1) ESTABLISHMENT- (A) The Secretary shall solicit proposals for demonstration and 

commercial application projects for renewable energy and energy efficiency technologies pursuant 

to subsection (c). Such projects may include projects for-- 

`(i) the production and sale of electricity, thermal energy, or other forms of energy using a 

renewable energy technology; 

`(ii) increasing the efficiency of energy use; and 

`(iii) improvements in, or expansion of, facilities for the manufacture of renewable energy or 

energy efficiency technologies. 

`(B) REQUIREMENTS- Each project selected under this section shall include at least one forprofit business. Activities supported under this section shall be performed in the United States. 

Each project under this section shall require the manufacture and reproduction substantially within 

the United States for commercial sale of any invention or product that may result from the project. 

`(2) FORMS OF FINANCIAL ASSISTANCE- (A) In supporting projects selected under 

subsection (c), the Secretary may choose from among the forms of agreements described in section 

3001 of the Energy Policy Act of 1992. 

`(B) In supporting projects selected under subsection (c), the Secretary may also enter into 

agreements with private lenders to pay a portion of the interest on loans made for such projects. 

`(3) COST SHARING- Cost sharing for projects under this section shall be conducted according to 

the procedures described in section 3002 (b) and (c) of the Energy Policy Act of 1992. 

`(4) ADVISORY COMMITTEE- (A) The Secretary shall establish an Advisory Committee on 

Demonstration and Commercial Application of Renewable Energy and Energy Efficiency 

Technologies (in this Act referred to as the `Advisory Committee') to advise the Secretary on the 

development of the solicitation and evaluation criteria for projects under this section, and on 

otherwise carrying out his responsibilities under this section. The Secretary shall appoint members 

to the Advisory Committee, including at least one member representing-- 

`(i) the Secretary of Commerce; 

`(ii) the National Laboratories of the Department of Energy; 

`(iii) the Solar Energy Research Institute; 

`(iv) the Electric Power Research Institute; 

`(v) the Gas Research Institute; 

`(vi) the National Institute of Building Sciences;

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`(vii) the National Institute of Standards and Technology; 

`(viii) associations of firms in the major renewable energy manufacturing industries; and 

`(ix) associations of firms in the major energy efficiency manufacturing industries. 

Nothing in this subparagraph shall be construed to require the Secretary to reestablish the 

Advisory Committee in place under this subsection as of the date of enactment of the Energy 

Policy Act of 1992, or to perform again any duties performed by such advisory committee before 

such date of enactment. 

`(B) Not later than 18 months after the date of the enactment of the Energy Policy Act of 1992, the 

Advisory Committee shall provide the Secretary with a report assessing the implementation of the 

program under this section, including specific recommendations for improvements or changes to 

the program and solicitation process. The Secretary shall transmit such report and, if any, the 

Secretary's recommendations to the Congress. 

`(c) SELECTION OF PROJECTS- 

`(1) SOLICITATION- (A) Not later than 9 months after the date of the enactment of the Energy 

Policy Act of 1992, the Secretary shall solicit proposals for projects under this section. The 

Secretary may make additional solicitations for proposals if the Secretary determines that such 

solicitations are necessary to carry out this section. 

`(B) A solicitation for proposals under this paragraph shall establish a closing date for receipt of 

proposals. The Secretary may, if necessary, extend the closing date for receipt of proposals for a 

period not to exceed 90 days. 

`(C) Each solicitation under this paragraph shall include a description of the criteria, developed by 

the Secretary, according to which proposals will be evaluated. In developing such criteria, the 

Secretary shall consider-- 

`(i) the need for Federal involvement to commercialize the technology or speed 

commercialization of the technology; 

`(ii) the potential for the technology to have significant market penetration; 

`(iii) the potential energy efficiency gains or energy supply contributions of the technology; 

`(iv) potential environmental improvements associated with the technology; 

`(v) the export potential of the technology; 

`(vi) the likelihood that the proposal is technically sufficient to achieve the objective of the 

solicitation; 

`(vii) the degree to which non-Federal financial participation is involved in the proposal; 

`(viii) the business and financial history of the proposer or proposers; and

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`(ix) any other factor the Secretary considers appropriate. 

`(2) PROJECT TECHNOLOGIES- Projects under this section may include the following 

technologies: 

`(A) Conversion of cellulosic biomass to liquid fuels. 

`(B) Ethanol and ethanol byproduct processes. 

`(C) Direct combustion or gasification of biomass. 

`(D) Biofuels energy systems. 

`(E) Photovoltaics, including utility scale and remote applications. 

`(F) Solar thermal, including solar water heating. 

`(G) Wind energy. 

`(H) High temperature and low temperature geothermal energy. 

`(I) Fuel cells, including transportation and stationary applications. 

`(J) Nondefense high-temperature superconducting electricity technology. 

`(K) Source reduction technology. 

`(L) Factory-made housing. 

`(M) Advanced district cooling. 

`(3) PROJECT SELECTION- The Secretary shall, within 120 days after the closing date 

established under paragraph (1)(B), select proposals to receive financial assistance under this 

section. In selecting proposals under this paragraph, the Secretary shall-- 

`(A) consider each proposal's ability to meet the criteria developed pursuant to paragraph (1)

(C); and 

`(B) attempt to achieve technological and geographic diversity. 

`(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $50,000,000 for fiscal year 1994. 

(b) NATIONAL GOALS AND MULTIYEAR FUNDING FOR ALCOHOL FROM BIOMASS- Section 

4(a) of the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 (42 

U.S.C. 12003(a)) is amended-- 

(1) by redesignating paragraph (4) as paragraph (5);

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(2) by inserting after paragraph (3) the following new paragraph: 

`(4) ALCOHOL FROM BIOMASS- (A) In general, the goal of the Alcohol From Biomass 

Program shall be to advance research and development to a point where alcohol from biomass 

technology is cost-competitive with conventional hydrocarbon transportation fuels, and to promote 

the integration of this technology into the transportation fuel sector of the economy. 

`(B)(i) Specific goals for producing ethanol from biomass shall be to-- 

`(I) reduce the cost of alcohol to 70 cents per gallon; 

`(II) improve the overall biomass carbohydrate conversion efficiency to 91 percent; 

`(III) reduce the capital cost component of the cost of alcohol to 23 cents per gallon; and 

`(IV) reduce the operating and maintenance component of the cost of alcohol to 47 cents per 

gallon. 

`(ii) Specific goals for producing methanol from biomass shall be to-- 

`(I) reduce the cost of alcohol to 47 cents per gallon; and 

`(II) reduce the capital component of the cost of alcohol to 16 cents per gallon.'; and 

(3) in paragraph (5), as so redesignated by paragraph (1) of this subsection, by inserting `Biodiesel 

Energy Systems,' after `Biofuels Energy Systems,'. 

(c) NATIONAL RENEWABLE ENERGY AND ENERGY EFFICIENCY MANAGEMENT PLANSection 9(b) of the Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 

(42 U.S.C. 12008(b)) is amended-- 

(1) in paragraph (1) by inserting `three-year' before `management plan'; and 

(2) by striking paragraph (5) and inserting in lieu thereof the following new paragraphs: 

`(5) In addition, the Plan shall-- 

`(A) contain a detailed assessment of program needs, objectives, and priorities for each of 

the programs authorized under section 6 of this Act; 

`(B) use a uniform prioritization methodology to facilitate cost-benefit analyses of proposals 

in various program areas; 

`(C) establish milestones for setting forth specific technology transfer activities under each 

program area; 

`(D) include annual and five-year cost estimates for individual programs under this Act; and 

`(E) identify program areas for which funding levels have been changed from the previous 

year's Plan. 

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`(6) Within one year after the date of the enactment of the Energy Policy Act of 1992, the 

Secretary shall submit a revised management plan under this section to Congress. Thereafter, the 

Secretary shall submit a management plan every three years at the time of submittal of the 

President's annual budget submission to the Congress.'. 

(d) CONFORMING AMENDMENTS- The Renewable Energy and Energy Efficiency Technology 

Competitiveness Act of 1989 (42 U.S.C. 12001 et seq.) is further amended-- 

(1) in section 2(b)-- 

(A) by striking `authority contained in' and all that follows through `applicable to the 

Secretary' and inserting in lieu thereof `section 3001 of the Energy Policy Act of 1992'; and 

(B) by striking `and demonstration' and inserting in lieu thereof `demonstration, and 

commercial application'; 

(2) in section 2(b)(4)-- 

(A) by striking `research and development'; and 

(B) by striking `joint ventures' and inserting in lieu thereof `demonstration and commercial 

application projects'; 

(3) in section 2(c), by striking `the authority contained in' and all that follows and inserting in lieu 

thereof `section 3001 of the Energy Policy Act of 1992, is authorized and directed to-- 

`(1) pursue a program of research, development, demonstration, and commercial application with 

the private sector, to achieve the purpose of this Act, including the goals established under section 

4; and 

`(2) undertake demonstration and commercial application projects as provided in section 6.'; 

(4) in section 3-- 

(A) by striking paragraph (2); 

(B) by redesignating paragraphs (3), (4), and (5) as paragraphs (2), (3), and (4), respectively;

(C) in paragraph (4), as so redesignated by subparagraph (B) of this paragraph-- 

(i) by striking `joint venture' and inserting in lieu thereof `demonstration and 

commercial application project'; 

(ii) by striking `venture' and inserting in lieu thereof `demonstration and commercial 

application project'; and 

(iii) by striking `and' at the end thereof; and 

(D) by inserting after paragraph (4), as so redesignated by subparagraph (B) of this 

paragraph, the following new paragraph:

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`(5) the term `source reduction' means any practice which-- 

`(A) reduces the amount of any hazardous substance, pollutant, or contaminant entering any 

waste stream or otherwise released into the environment, including fugitive emissions, prior 

to recycling, treatment, or disposal; and 

`(B) reduces the hazards to the public health and the environment associated with the release 

of such substances, pollutants, or contaminants, 

including equipment or technology modifications, process or procedure modifications, 

reformulation or redesign of products, substitution of raw materials, and improvements in 

housekeeping, maintenance, training, and inventory control, but not including any practice which 

alters the physical, chemical, or biological characteristics or the volume of a hazardous substance, 

pollutant, or contaminant through a process or activity which itself is not integral to and necessary 

for the production of a product or the providing of a service;'; and 

(5) in section 9(a), by striking `, projects, and joint ventures' and inserting in lieu thereof `and 

projects'. 

SEC. 1203. RENEWABLE ENERGY EXPORT TECHNOLOGY TRAINING. 

(a) ESTABLISHMENT OF PROGRAM- The Secretary, through the Agency for International 

Development, shall establish a program for the training of individuals from developing countries in the 

operation and maintenance of renewable energy and energy efficiency technologies in accordance with 

this section. The Secretary and the Administrator of the Agency for International Development shall, 

within one year after the date of enactment of this Act, enter into a written agreement to carry out this 

program. 

(b) PURPOSE- The purpose of the program established under this section shall be to train appropriate 

persons in the system design, operation, and maintenance of renewable energy and energy efficiency 

equipment manufactured in the United States, including equipment for water pumping, heating and 

purification, and the production of electric power in remote areas. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary $6,000,000 for each of the fiscal years 1994, 1995, and 1996, to carry out this section. 

SEC. 1204. RENEWABLE ENERGY ADVANCEMENT AWARDS. 

(a) AUTHORITY- The Secretary shall make Renewable Energy Advancement Awards in recognition of 

developments that advance the practical application of biomass, geothermal, hydroelectric, photovoltaic, 

solar thermal, ocean thermal, and wind technologies to consumer, utility, or industrial uses, in 

accordance with this section. Except as provided in subsection (f), Renewable Energy Advancement 

Awards shall include a cash award. 

(b) SELECTION CRITERIA- The Secretary, in consultation with the Advisory Committee on 

Demonstration and Commercial Application of Renewable Energy and Energy Efficiency Technologies 

(in this section referred to as the `Advisory Committee'), under section 6 of the Renewable Energy and 

Energy Efficiency Technology Competitiveness Act of 1989, shall develop criteria to be applied in the 

selection of award recipients under this section. Such criteria shall include the following: 

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(1) The degree to which the technological development increases the utilization of renewable 

energy. 

(2) The degree to which the development will have a significant impact, by benefitting a large 

number of people, by reducing the costs of an important industrial process or commercial product 

or service, or otherwise. 

(3) The ingenuity of the development. 

(4) Whether the application has significant export potential. 

(5) The environmental soundness of the development. 

(c) SELECTION- Beginning in fiscal year 1994, and annually thereafter for a period of 10 years, the 

Secretary, in consultation with the Advisory Committee, shall select developments described in 

subsection (a) that are worthy of receiving an award under this section, and shall make such awards. 

(d) ELIGIBILITY- Awards may be made under this section only to individuals who are United States 

nationals or permanent resident aliens, or to non-Federal organizations that are organized under the laws 

of the United States or the laws of a State of the United States. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary $50,000 for each of the fiscal years 1994, 1995, and 1996 for carrying out this section. 

(f) AWARDS MADE IN ABSENCE OF APPROPRIATIONS- The Secretary shall make honorary 

awards under this section if sufficient funds are not available for financial awards in any fiscal year. 

SEC. 1205. STUDY OF TAX AND RATE TREATMENT OF RENEWABLE ENERGY PROJECTS. 

(a) The Secretary, in conjunction with State regulatory commissions, shall undertake a study to 

determine if conventional taxation and ratemaking procedures result in economic barriers to or 

incentives for renewable energy power plants compared to conventional power plants. 

(b) Within 1 year after the date of the enactment of this Act, the Secretary shall submit a report to the 

Congress on the results of the study undertaken under subsection (a). 

SEC. 1206. STUDY OF RICE MILLING ENERGY BY-PRODUCT MARKETING. 

The Department of Energy shall conduct a study to facilitate the marketing of energy byproducts from 

rice milling. 

SEC. 1207. DUTIES OF INTERAGENCY WORKING GROUP ON RENEWABLE ENERGY AND 

ENERGY EFFICIENCY EXPORTS. 

(a) INTERAGENCY WORKING GROUP- Section 256(d) of the Energy Policy and Conservation Act 

(42 U.S.C. 6276(d)) is amended to read as follows: 

`(d) INTERAGENCY WORKING GROUP- 

`(1) ESTABLISHMENT- (A) There shall be established an interagency working group that, in 

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consultation with the representative industry groups and relevant agency heads, shall make 

recommendations to coordinate the actions and programs of the Federal Government affecting 

exports of renewable energy and energy efficiency products and services. The interagency working 

group shall establish a program to inform foreign countries of the benefits of policies that would 

increase energy efficiency or would allow facilities that use renewable energy to compete 

effectively with producers of energy from nonrenewable sources. 

`(B) There shall be established an Interagency Working Subgroup on Renewable Energy and an 

Interagency Working Subgroup on Energy Efficiency that shall, in consultation with representative 

industry groups, nonprofit organizations, and relevant Federal agencies, make recommendations to 

coordinate the actions and programs of the Federal Government to promote the export of domestic 

renewable energy and energy efficiency products and services, respectively. 

`(C) The Secretary of Energy, or the Secretary's designee, shall chair the interagency working 

group and each subgroup established under this paragraph. The Administrator of the Agency for 

International Development and the Secretary of Commerce, or their designees, shall be members 

of both subgroups established under this paragraph. The Secretary shall provide staff for carrying 

out the functions of the interagency working group and each subgroup established under this 

paragraph. The heads of appropriate agencies may detail such personnel and may furnish such 

services to such group and subgroups, with or without reimbursement, as may be necessary to 

carry out their functions. 

`(2) DUTIES OF THE INTERAGENCY WORKING SUBGROUPS- (A) The interagency 

working subgroups established under paragraph (1)(B), through the member agencies of the 

interagency working group, shall promote the development and application in foreign countries of 

renewable energy and energy efficiency products and services, respectively, that-- 

`(i) reduce dependence on unreliable sources of energy by encouraging the use of 

sustainable biomass, wind, small-scale hydroelectric, solar, geothermal, and other renewable 

energy and energy efficiency products and services; and 

`(ii) use hybrid fossil-renewable energy systems. 

`(B) In addition, the interagency working subgroups shall explore mechanisms for assisting 

domestic firms, particularly small businesses, with the export of their renewable energy and energy

efficiency products and services and with the identification of potential projects. 

`(3) TRAINING AND ASSISTANCE- The interagency working subgroups shall encourage the 

member agencies of the interagency working group to-- 

`(A) provide technical training and education for international development personnel and 

local users in their own country; 

`(B) provide financial and technical assistance to nonprofit institutions that support the 

marketing and export efforts of domestic companies that provide renewable energy and 

energy efficiency products and services; 

`(C) develop environmentally sustainable renewable energy and energy efficiency projects 

in foreign countries; 

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`(D) provide technical assistance and training materials to loan officers of the World Bank, 

international lending institutions, commercial and energy attaches at embassies of the United 

States and other appropriate personnel in order to provide information about renewable 

energy and energy efficiency products and services to foreign governments or other 

potential project sponsors; 

`(E) support, through financial incentives, private sector efforts to commercialize and export 

renewable energy and energy efficiency products and services; and 

`(F) augment budgets for trade and development programs in order to support pre-feasibility 

or feasibility studies for projects that utilize renewable energy and energy efficiency 

products and services.'. 

(b) FUNCTIONS- Section 256(f) of the Energy Policy and Conservation Act (42 U.S.C. 6276(f)) is 

amended by inserting `and energy efficiency' after `renewable energy' each place it appears. 

(c) DEFINITIONS- Section 256(g) of the Energy Policy and Conservation Act (42 U.S.C. 6276(g)) is 

repealed. 

(d) AUTHORIZATION OF APPROPRIATIONS- Section 256(h) of the Energy Policy and Conservation 

Act (42 U.S.C. 6276(h)) is amended to read as follows: 

`(h) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for purposes of carrying out the programs under subsections (d) and (e) $10,000,000, to be 

divided equitably between the interagency working subgroups based on program requirements, for each 

of the fiscal years 1993 and 1994, and such sums as may be necessary for fiscal year 1995 to carry out 

the purposes of this subtitle.'. 

SEC. 1208. STUDY OF EXPORT PROMOTION PRACTICES. 

Section 256(d) of the Energy Policy and Conservation Act (42 U.S.C. 6276(d)) as amended by section 

1208 of this Act, is further amended by adding at the end the following new paragraph: 

`(4) The interagency working group shall conduct a study of subsidies, incentives, and policies that 

foreign countries use to promote exports of their own renewable energy and energy efficiency 

technologies and products. Such study shall also identify foreign trade barriers to the import of 

renewable energy and energy efficiency technologies and products produced in the United States. The 

interagency working group shall report to the appropriate committees of the House of Representatives 

and the Senate the results of such study within 18 months after the date of the enactment of the Energy 

Policy Act of 1992.'. 

SEC. 1209. DATA SYSTEM AND ENERGY TECHNOLOGY EVALUATION. 

The Secretary of Commerce, in his or her role as a member of the interagency working group established 

under section 256 of the Energy Policy and Conservation Act (42 U.S.C. 6276), shall-- 

(1) develop a comprehensive data base and information dissemination system, using the National 

Trade Data Bank and the Commercial Information Management System of the Department of 

Commerce, that will provide information on the specific energy technology needs of foreign 

countries, and the technical and economic competitiveness of various renewable energy and 

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energy efficiency products and technologies; 

(2) make such information available to industry, Federal and multilateral lending agencies, 

nongovernmental organizations, host-country and donor-agency officials, and such others as the 

Secretary of Commerce considers necessary; and 

(3) prepare and transmit to the Congress not later than June 1, 1993, and biennially thereafter, a 

comprehensive report evaluating the full range of energy and environmental technologies 

necessary to meet the energy needs of foreign countries, including-- 

(A) information on the specific energy needs of foreign countries; 

(B) an inventory of United States technologies and services to meet those needs; 

(C) an update on the status of ongoing bilateral and multilateral programs which promote 

United States exports of renewable energy and energy efficiency products and technologies; 

and 

(D) an evaluation of current programs (and recommendations for future programs) that 

develop and promote energy efficiency and sustainable use of indigenous renewable energy 

resources in foreign countries to reduce the generation of greenhouse gases. 

SEC. 1210. OUTREACH. 

(a) OUTREACH- The interagency working group established under section 256(d)(1)(A) of the Energy 

Policy and Conservation Act and the Secretary of Commerce shall select one individual who is 

experienced in renewable energy and energy efficiency products and technologies to be assigned by the 

Secretary of Commerce to an office of the United States and Foreign Commercial Service in the Pacific 

Rim, and one such individual to be assigned by the Secretary of Commerce to an office of the United 

States and Foreign Commercial Service in the Caribbean Basin, for the sole purpose of providing 

information concerning domestic renewable energy and energy efficiency products, technologies, and 

industries to territories, foreign governments, industries, and other appropriate persons. 

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for the purposes of this section $500,000 for each of the fiscal years 1993 and 1994, and such 

sums as may be necessary for fiscal year 1995. 

SEC. 1211. INNOVATIVE RENEWABLE ENERGY TECHNOLOGY TRANSFER PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM- The Secretary, through the Agency for International 

Development, and in consultation with the other members of the interagency working group established 

under section 256(d) of Energy Policy and Conservation Act (in this section referred to as the 

`interagency working group'), shall establish a renewable energy technology transfer program to carry 

out the purposes described in subsection (b). Within 150 days after the date of the enactment of this Act, 

the Secretary and the Administrator of the Agency for International Development shall enter into a 

written agreement to carry out this section. The agreement shall establish a procedure for resolving any 

disputes between the Secretary and the Administrator regarding the implementation of specific projects. 

With respect to countries not assisted by the Agency for International Development, the Secretary may 

enter into agreements with other appropriate Federal agencies. If the Secretary and the Administrator, or 

the Secretary and an agency described in the previous sentence, are unable to reach an agreement, each 

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shall send a memorandum to the President outlining an appropriate agreement. Within 90 days after 

receipt of either memorandum, the President shall determine which version of the agreement shall be in 

effect. Any agreement entered into under this subsection shall be provided to the appropriate committees 

of the Congress and made available to the public. 

(b) PURPOSES OF THE PROGRAM- The purposes of the technology transfer program under this 

section are to-- 

(1) reduce the United States balance of trade deficit through the export of United States renewable 

energy technologies and technological expertise; 

(2) retain and create manufacturing and related service jobs in the United States; 

(3) encourage the export of United States renewable energy technologies, including services 

related thereto, to those countries that have a need for developmentally sound facilities to provide 

energy derived from renewable resources; 

(4) develop markets for United States renewable energy technologies to be utilized in meeting the 

energy and environmental requirements of foreign countries; 

(5) better ensure that United States participation in energy-related projects in foreign countries 

includes participation by United States firms as well as utilization of United States technologies 

that have been developed or demonstrated in the United States through publicly or privately 

funded demonstration programs; 

(6) ensure the introduction of United States firms and expertise in foreign countries; 

(7) provide financial assistance by the Federal Government to foster greater participation by 

United States firms in the financing, ownership, design, construction, or operation of renewable 

energy technology projects in foreign countries; 

(8) assist foreign countries in meeting their energy needs through the use of renewable energy in 

an environmentally acceptable manner, consistent with sustainable development policies; and 

(9) assist United States firms, especially firms that are in competition with firms in foreign 

countries, to obtain opportunities to transfer technologies to, or undertake projects in, foreign 

countries. 

(c) IDENTIFICATION- Pursuant to the agreements required by subsection (a), the Secretary, through 

the Agency for International Development, and after consultation with the interagency working group, 

United States firms, and representatives from foreign countries, shall develop mechanisms to identify 

potential energy projects in host countries, and shall identify a list of such projects within 240 days after 

the date of the enactment of this Act, and periodically thereafter. 

(d) FINANCIAL MECHANISMS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall-- 

(A) establish appropriate financial mechanisms to increase the participation of United States firms 

in energy projects utilizing United States renewable energy technologies, and services related 

thereto, in developing countries; 

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(B) utilize available financial assistance authorized by this section to counterbalance assistance 

provided by foreign governments to non-United States firms; and 

(C) provide financial assistance to support projects. 

(2) The financial assistance authorized by this section may be-- 

(A) provided in combination with other forms of financial assistance, including non-United States 

funding that is available to the project; and 

(B) utilized to assist United States firms in the development of innovative financing packages for 

renewable energy technology projects that utilize other financial assistance programs available 

through the Federal Government. 

(3) United States obligations under the Arrangement on Guidelines for Officially Supported Export 

Credits established through the Organization for Economic Cooperation and Development shall be 

applicable to this section. 

(e) SOLICITATIONS FOR PROJECT PROPOSALS- (1) Pursuant to the agreements under subsection 

(a), the Secretary, through the Agency for International Development, within one year after the date of 

the enactment of this Act, and subsequently as appropriate thereafter, shall solicit proposals from United 

States firms for the design, construction, testing, and operation of the project or projects identified under 

subsection (c) which propose to utilize a United States renewable energy technology. Each solicitation 

under this section shall establish a closing date for receipt of proposals. 

(2) The solicitation under this subsection shall, to the extent appropriate, be modeled after the RFP No. 

DE-PS01-90FE62271 Clean Coal Technology IV, as administered by the Department of Energy. 

(3) Any solicitation made under this subsection shall include the following requirements: 

(A) The United States firm that submits a proposal in response to the solicitation shall have an 

equity interest in the proposed project. 

(B) The project shall utilize a United States renewable energy technology, including services 

related thereto, in meeting the applicable energy and environmental requirements of the host 

country. 

(C) Proposals for projects shall be submitted by and undertaken with a United States firm, 

although a joint venture or other teaming arrangement with a non-United States manufacturer or 

other non-United States entity is permissible. 

(f) ASSISTANCE TO UNITED STATES FIRMS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the interagency 

working group, shall establish a procedure to provide financial assistance to United States firms under 

this section for a project identified under subsection (c) where solicitations for the project are being 

conducted by the host country or by a multilateral lending institution. 

(g) OTHER PROGRAM REQUIREMENTS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the working 

group, shall-- 

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(1) establish eligibility criteria for host countries; 

(2) periodically review the energy needs of such countries and export opportunities for United 

States firms for the development of projects in such countries; 

(3) consult with government officials in host countries and, as appropriate, with representatives of 

utilities or other entities in host countries, to determine interest in and support for potential 

projects; and 

(4) determine whether each project selected under this section is developmentally sound, as 

determined under the criteria developed by the Development Assistance Committee of the 

Organization for Economic Cooperation and Development. 

(h) SELECTION OF PROJECTS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall, not later than 120 days after receipt of 

proposals in response to a solicitation under subsection (e), select one or more proposals under this 

section. 

(2) In selecting a proposal under this section, the Secretary, through the Agency for International 

Development, shall consider-- 

(A) the ability of the United States firm, in cooperation with the host country, to undertake and 

complete the project; 

(B) the degree to which the equipment to be included in the project is designed and manufactured 

in the United States; 

(C) the long-term technical and competitive viability of the United States technology, and services 

related thereto, and the ability of the United States firm to compete in the development of 

additional energy projects using such technology in the host country and in other foreign countries;

(D) the extent of technical and financial involvement of the host country in the project; 

(E) the extent to which the proposed project meets the purposes stated in section 1201(b); 

(F) the extent of technical, financial, management, and marketing capabilities of the participants in 

the project, and the commitment of the participants to completion of a successful project in a 

manner that will facilitate acceptance of the United States technology for future application; and 

(G) such other criteria as may be appropriate. 

(3) In selecting among proposed projects, the Secretary shall seek to ensure that, relative to otherwise 

comparable projects in the host country, a selected project will meet 1 or more of the following criteria: 

(A) It will reduce environmental emissions to an extent greater than required by applicable 

provisions of law. 

(B) It will make greater use of indigenous renewable energy resources. 

(C) It will be a more cost-effective technological alternative, based on life cycle capital and 

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operating costs per unit of energy produced and, where applicable, costs per unit of product 

produced. 

Priority in selection shall be given to those projects which, in the judgment of the Secretary, best meet 

one or more of these criteria. 

(i) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHIP- Activities carried out under this 

section shall be coordinated with the United States-Asia Environmental Partnership. 

(j) BUY AMERICA- In carrying out this section, the Secretary, through the Agency for International 

Development, and pursuant to the agreements under subsection (a), shall ensure-- 

(1) the maximum percentage, but in no case less than 50 percent, of the cost of any equipment 

furnished in connection with a project authorized under this section shall be attributable to the 

manufactured United States components of such equipment; and 

(2) the maximum participation of United States firms. 

In determining whether the cost of United States components equals or exceeds 50 percent, the cost of 

assembly of such United States components in the host country shall not be considered a part of the cost 

of such United States component. 

(k) REPORTS TO CONGRESS- The Secretary and the Administrator of the Agency for International 

Development shall report annually to the Committee on Energy and Natural Resources of the Senate and 

the appropriate committees of the House of Representatives on the progress being made to introduce 

renewable energy technologies into foreign countries. 

(l) DEFINITIONS- For purposes of this section-- 

(1) the term `host country' means a foreign country which is-- 

(A) the participant in or the site of the proposed renewable energy technology project; and 

(B) either-- 

(i) classified as a country eligible to participate in development assistance programs of

the Agency for International Development pursuant to applicable law or regulation; or

(ii) a developing country. 

(2) the term `developing country' includes, but is not limited to, countries in Central and Eastern 

Europe or in the independent states of the former Soviet Union. 

(m) AUTHORIZATION FOR PROGRAM- There are authorized to be appropriated to the Secretary to 

carry out the program required by this section, $100,000,000 for each of the fiscal years 1993, 1994, 

1995, 1996, 1997, and 1998. 

SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

(a) INCENTIVE PAYMENTS- For electric energy generated and sold by a qualified renewable energy

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facility during the incentive period, the Secretary shall make, subject to the availability of appropriations, 

incentive payments to the owner or operator of such facility. The amount of such payment made to any 

such owner or operator shall be as determined under subsection (e). Payments under this section may 

only be made upon receipt by the Secretary of an incentive payment application which establishes that 

the applicant is eligible to receive such payment and which satisfies such other requirements as the 

Secretary deems necessary. Such application shall be in such form, and shall be submitted at such time, 

as the Secretary shall establish. 

(b) QUALIFIED RENEWABLE ENERGY FACILITY- For purposes of this section, a qualified 

renewable energy facility is a facility which is owned by a State or any political subdivision of a State 

(or an agency, authority, or instrumentality of a State or a political subdivision), by any corporation or 

association which is wholly owned, directly or indirectly, by one or more of the foregoing, or by a 

nonprofit electrical cooperative and which generates electric energy for sale in, or affecting, interstate 

commerce using solar, wind, biomass, or geothermal energy, except that-- 

(1) the burning of municipal solid waste shall not be treated as using biomass energy; and 

(2) geothermal energy shall not include energy produced from a dry steam geothermal reservoir 

which has-- 

(A) no mobile liquid in its natural state; 

(B) steam quality of 95 percent water; and 

(C) an enthalpy for the total produced fluid greater than or equal to 1200 Btu/lb (British 

thermal units per pound). 

(c) ELIGIBILITY WINDOW- Payments may be made under this section only for electricity generated 

from a qualified renewable energy facility first used during the 10-fiscal year period beginning with the 

first full fiscal year occurring after the enactment of this section. 

(d) PAYMENT PERIOD- A qualified renewable energy facility may receive payments under this section 

for a 10-fiscal year period. Such period shall begin with the fiscal year in which electricity generated 

from the facility is first eligible for such payments. 

(e) AMOUNT OF PAYMENT- 

(1) IN GENERAL- Incentive payments made by the Secretary under this section to the owner or 

operator of any qualified renewable energy facility shall be based on the number of kilowatt hours 

of electricity generated by the facility through the use of solar, wind, biomass, or geothermal 

energy during the payment period referred to in subsection (d). For any facility, the amount of 

such payment shall be 1.5 cents per kilowatt hour, adjusted as provided in paragraph (2). 

(2) ADJUSTMENTS- The amount of the payment made to any person under this subsection as 

provided in paragraph (1) shall be adjusted for inflation for each fiscal year beginning after 

calendar year 1993 in the same manner as provided in the provisions of section 29(d)(2)(B) of the 

Internal Revenue Code of 1986, except that in applying such provisions the calendar year 1993 

shall be substituted for calendar year 1979. 

(f) SUNSET- No payment may be made under this section to any facility after the expiration of the 20-

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fiscal year period beginning with the first full fiscal year occurring after the enactment of this section, 

and no payment may be made under this section to any facility after a payment has been made with 

respect to such facility for a 10-fiscal year period. 

(g) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for fiscal years 1993, 1994, and 1995 such sums as may be necessary to carry out the purposes 

of this section. 

TITLE XIII--COAL 

Subtitle A--Research, Development, Demonstration, and Commercial Application 

SEC. 1301. COAL RESEARCH, DEVELOPMENT, DEMONSTRATION, AND 

COMMERCIAL APPLICATION PROGRAMS. 

(a) ESTABLISHMENT- The Secretary shall, in accordance with section 3001 and 3002 of this Act, 

conduct programs for research, development, demonstration, and commercial application on coal-based 

technologies. Such research, development, demonstration, and commercial application programs shall 

include the programs established under this subtitle, and shall have the goals and objectives of-- 

(1) ensuring a reliable electricity supply; 

(2) complying with applicable environmental requirements; 

(3) achieving the control of sulfur oxides, oxides of nitrogen, air toxics, solid and liquid wastes, 

greenhouse gases, or other emissions resulting from coal use or conversion at levels of proficiency 

greater than or equal to applicable currently available commercial technology; 

(4) achieving the cost competitive conversion of coal into energy forms usable in the 

transportation sector; 

(5) demonstrating the conversion of coal to synthetic gaseous, liquid, and solid fuels; 

(6) demonstrating, in cooperation with other Federal and State agencies, the use of coal-derived 

fuels in mobile equipment, with opportunities for industrial cost sharing participation; 

(7) ensuring the timely commercial application of cost-effective technologies or energy production 

processes or systems utilizing coal which achieve-- 

(A) greater efficiency in the conversion of coal to useful energy when compared to currently 

available commercial technology for the use of coal; and 

(B) the control of emissions from the utilization of coal; and 

(8) ensuring the availability for commercial use of such technologies by the year 2010. 

(b) DEMONSTRATION AND COMMERCIAL APPLICATION PROGRAMS- (1) In selecting either a 

demonstration project or a commercial application project for financial assistance under this subtitle, the 

Secretary shall seek to ensure that, relative to otherwise comparable commercially available technologies 

or products, the selected project will meet one or more of the following criteria: 

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(A) It will reduce environmental emissions to an extent greater than required by applicable 

provisions of law. 

(B) It will increase the overall efficiency of the utilization of coal, including energy conversion 

efficiency and, where applicable, production of products derived from coal. 

(C) It will be a more cost-effective technological alternative, based on life cycle capital and 

operating costs per unit of energy produced and, where applicable, costs per unit of product 

produced. 

Priority in selection shall be given to those projects which, in the judgment of the Secretary, best meet 

one or more of these criteria. 

(2) In administering demonstration and commercial application programs authorized by this subtitle, the 

Secretary shall establish accounting and project management controls that will be adequate to control 

costs. 

(3)(A) Not later than 180 days after the date of enactment of this Act, the Secretary shall establish 

procedures and criteria for the recoupment of the Federal share of each cost shared demonstration and 

commercial application project authorized pursuant to this subtitle. Such recoupment shall occur within a 

reasonable period of time following the date of completion of such project, but not later than 20 years 

following such date, taking into account the effect of recoupment on-- 

(i) the commercial competitiveness of the entity carrying out the project; 

(ii) the profitability of the project; and 

(iii) the commercial viability of the coal-based technology utilized. 

(B) The Secretary may at any time waive or defer all or some portion of the recoupment requirement as 

necessary for the commercial viability of the project. 

(4) Projects selected by the Secretary under this subtitle for demonstration or commercial application of 

a technology shall, in the judgment of the Secretary, be capable of enhancing the state of the art for such 

technology. 

(c) REPORT- Within 240 days after the date of enactment of this Act, the Secretary shall transmit to the 

Committee on Energy and Commerce and the Committee on Science, Space, and Technology of the 

House of Representatives and to the Committee on Energy and Natural Resources of the Senate a report 

which shall include each of the following: 

(1) A detailed description of ongoing research, development, demonstration, and commercial 

application activities regarding coal-based technologies undertaken by the Department of Energy, 

other Federal or State government departments or agencies and, to the extent such information is 

publicly available, other public or private organizations in the United States and other countries. 

(2) A listing and analysis of current Federal and State government regulatory and financial 

incentives that could further the goals of the programs established under this subtitle. 

(3) Recommendations regarding the manner in which any ongoing coal-based demonstration and 

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commercial application program might be modified and extended in order to ensure the timely 

demonstrations of advanced coal-based technologies so as to ensure that the goals established 

under this section are achieved and that such demonstrated technologies are available for 

commercial use by the year 2010. 

(4) Recommendations, if any, regarding the manner in which the cost sharing demonstrations 

conducted pursuant to the Clean Coal Program established by Public Law 98-473 might be 

modified and extended in order to ensure the timely demonstration of advanced coal-based 

technologies. 

(5) A detailed plan for conducting the research, development, demonstration, and commercial 

application programs to achieve the goals and objectives of subsection (a) of this section, which 

plan shall include a description of-- 

(A) the program elements and management structure to be utilized; 

(B) the technical milestones to be achieved with respect to each of the advanced coal-based 

technologies included in the plan; and 

(C) the dates at which further deadlines for additional cost sharing demonstrations shall be 

established. 

(d) STATUS REPORTS- Within one year after transmittal of the report described in subsection (c), and 

every 2 years thereafter for a period of 6 years, the Secretary shall transmit to the Congress a report that 

provides a detailed description of the status of development of the advanced coal-based technologies and 

the research, development, demonstration, and commercial application activities undertaken to carry out 

the programs required by this subtitle. 

(e) CONSULTATION- In carrying out research, development, demonstration, and commercial 

application activities under this subtitle, the Secretary shall consult with the National Coal Council and 

other representatives of the public and private sectors as the Secretary considers appropriate. 

SEC. 1302. COAL-FIRED DIESEL ENGINES. 

The Secretary shall conduct a program of research, development, demonstration, and commercial 

application for utilizing coal-derived liquid or gaseous fuels, including ultra-clean coal-water slurries, in 

diesel engines. The program shall address-- 

(1) required engine retrofit technology; 

(2) coal-fuel production technology; 

(3) emission control requirements; 

(4) the testing of low-Btu highly reactive fuels; 

(5) fuel delivery and storage systems requirements; and 

(6) other infrastructure required to support commercial deployment.

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SEC. 1303. CLEAN COAL, WASTE-TO-ENERGY. 

The Secretary shall establish a program of research, development, demonstration, and commercial 

application with respect to the use of solid waste combined with coal as a fuel source for clean coal 

combustion technologies. The program shall address-- 

(1) the feasibility of cofiring coal and used vehicle tires in fluidized bed combustion units; 

(2) the combined gasification of coal and municipal sludge using integrated gasification combined 

cycle technology; 

(3) the creation of fuel pellets combining coal and material reclaimed from solid waste; 

(4) the feasibility of cofiring, in fluidized bed combustion units, waste methane from coal mines, 

including ventilation air, together with coal or coal wastes; and 

(5) other sources of waste and coal mixtures in other applications that the Secretary considers 

appropriate. 

SEC. 1304. NONFUEL USE OF COAL. 

(a) PROGRAM- The Secretary shall prepare a plan for and carry out a program of research, 

development, demonstration, and commercial application with respect to technologies for the nonfuel 

use of coal, including-- 

(1) production of coke and other carbon products derived from coal; 

(2) production of coal-derived, carbon-based chemical intermediates that are precursors of valueadded chemicals and polymers; 

(3) production of chemicals from coal-derived synthesis gas; 

(4) coal treatment processes, including methodologies such as solvent-extraction techniques that 

produce low ash, low sulfur, coal-based chemical feedstocks; and 

(5) waste utilization, including recovery, processing, and marketing of products derived from 

sulfur, carbon dioxide, nitrogen, and ash from coal. 

(b) PLAN CONTENTS- The plan described in subsection (a) shall address and evaluate-- 

(1) the known and potential processes for using coal in the creation of products in the chemical, 

utility, fuel, and carbon-based materials industries; 

(2) the costs, benefits, and economic feasibility of using coal products in the chemical and 

materials industries, including value-added chemicals, carbon-based products, coke, and waste 

derived from coal; 

(3) the economics of coproduction of products from coal in conjunction with the production of 

electric power, thermal energy, and fuel;

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(4) the economics of the refining of coal and coal byproducts to produce nonfuel products; 

(5) the economics of coal utilization in comparison with other feedstocks that might be used for 

the same purposes; 

(6) the steps that can be taken by the public and private sectors to bring about commercialization 

of technologies developed under the program recommended; and 

(7) the past development, current status, and future potential of coal products and processes 

associated with nonfuel uses of coal. 

SEC. 1305. COAL REFINERY PROGRAM. 

(a) PROGRAM- The Secretary shall conduct a program of research, development, demonstration, and 

commercial application for coal refining technologies. 

(b) OBJECTIVES- The program shall include technologies for refining high sulfur coals, low sulfur 

coals, sub-bituminous coals, and lignites to produce clean-burning transportation fuels, compliance 

boiler fuels, fuel additives, lubricants, chemical feedstocks, and carbon-based manufactured products, 

either alone or in conjunction with the generation of electricity or process heat, or the manufacture of a 

variety of products from coal. The objectives of such program shall be to achieve-- 

(1) the timely commercial application of technologies, including mild gasification, hydrocracking 

and other hydropyrolysis processes, and other energy production processes or systems to produce 

coal-derived fuels and coproducts, which achieve greater efficiency and economy in the 

conversion of coal to electrical energy and coproducts than currently available technology; 

(2) the production of energy, fuels, and products which, on a complete energy system basis, will 

result in environmental emissions no greater than those produced by existing comparable energy 

systems utilized for the same purpose; 

(3) the capability to produce a range of coal-derived transportation fuels, including oxygenated 

hydrocarbons, boiler fuels, turbine fuels, and coproducts, which can reduce dependence on 

imported oil by displacing conventional petroleum in the transportation sector and other sectors of 

the economy; 

(4) reduction in the cost of producing such coal-derived fuels and coproducts; 

(5) the control of emissions from the combustion of coal-derived fuels; and 

(6) the availability for commercial use of such technologies by the year 2000. 

SEC. 1306. COALBED METHANE RECOVERY. 

(a) STUDY OF BARRIERS AND ENVIRONMENTAL AND SAFETY ASPECTS- The Secretary, in 

consultation with the Administrator of the Environmental Protection Agency and the Secretary of the 

Interior, shall conduct a study of-- 

(1) technical, economic, financial, legal, regulatory, institutional, or other barriers to coalbed 

methane recovery, and of policy options for eliminating such barriers; and

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(2) the environmental and safety aspects of flaring coalbed methane liberated from coal mines. 

Within two years after the date of enactment of this Act, the Secretary shall submit a report to the 

Congress detailing the results of such study. 

(b) INFORMATION DISSEMINATION- Beginning one year after the date of enactment of this Act, the 

Secretary, in consultation with the Administrator of the Environmental Protection Agency and the 

Secretary of the Interior, shall disseminate to the public information on state-of-the-art coalbed methane 

recovery techniques, including information on costs and benefits. 

(c) DEMONSTRATION AND COMMERCIAL APPLICATION PROGRAM- The Secretary, in 

consultation with the Administrator of the Environmental Protection Agency and the Secretary of the 

Interior, shall establish a coalbed methane recovery demonstration and commercial application program, 

which shall emphasize gas enrichment technology. Such program shall address-- 

(1) gas enrichment technologies for enriching medium-quality methane recovered from coal mines 

to pipeline quality; 

(2) technologies to use mine ventilation air in nearby power generation facilities, including gas 

turbines, internal combustion engines, or other coal fired powerplants; 

(3) technologies for cofiring methane recovered from mines, including methane from ventilation 

systems and degasification systems, together with coal in conventional or clean coal technology 

boilers; and 

(4) other technologies for producing and using methane from coal mines that the Secretary 

considers appropriate. 

SEC. 1307. METALLURGICAL COAL DEVELOPMENT. 

(a) The Secretary shall establish a research, development, demonstration, and commercial application 

program on metallurgical coal utilization for the purpose of developing techniques that will lead to the 

greater and more efficient utilization of the Nation's metallurgical coal resources. 

(b) The program referred to in subsection (a) shall include the use of metallurgical coal-- 

(1) as a boiler fuel for the purpose of generating steam to produce electricity, including blending 

metallurgical coal with other coals in order to enhance its efficient application as a boiler fuel; 

(2) as an ingredient in the manufacturing of steel; and 

(3) as a source of pipeline quality coalbed methane. 

SEC. 1308. UTILIZATION OF COAL WASTES. 

(a) COAL WASTE UTILIZATION PROGRAM- The Secretary, in consultation with the Secretary of 

the Interior, shall establish a research, development, demonstration, and commercial application program 

on coal waste utilization for the purpose of developing techniques that will lead to the greater and more 

efficient utilization of coal wastes from mining and processing, other than coal ash. 

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(b) USE AS BOILER FUEL- The program referred to in subsection (a) shall include projects to facilitate 

the use of coal wastes from mining and processing as a boiler fuel for the purpose of generating steam to 

produce electricity. 

SEC. 1309. UNDERGROUND COAL GASIFICATION. 

(a) PROGRAM- The Secretary shall conduct a research, development, demonstration, and commercial 

application program for underground coal gasification technology for in-situ conversion of coal to a 

cleaner burning, easily transportable gaseous fuel. The goal and objective of this program shall be to 

accelerate the development and commercialization of underground coal gasification. In carrying out this 

program, the Secretary shall give equal consideration to all ranks of coal. 

(b) DEMONSTRATION PROJECTS- As part of the program authorized in subsection (a), the Secretary 

may solicit proposals for underground coal gasification technology projects to fulfill the goal and 

objective of subsection (a). 

SEC. 1310. LOW-RANK COAL RESEARCH AND DEVELOPMENT. 

The Secretary shall pursue a program of research and development with respect to the technologies 

needed to expand the use of low-rank coals which take into account the unique properties of lignites and 

sub-bituminous coals, including, but not limited to, the following areas-- 

(1) high value-added carbon products; 

(2) fuel cell applications; 

(3) emissions control and combustion efficiencies; 

(4) coal water fuels and underground coal gasification; 

(5) distillates; and 

(6) any other technologies which will assist in the development of niche markets for lignites and 

sub-bituminous coals. 

SEC. 1311. MAGNETOHYDRODYNAMICS. 

(a) PROGRAM- The Secretary shall carry out a research, development, demonstration, and commercial 

application program in magnetohydrodynamics. The purpose of this program shall be to determine the 

adequacy of the engineering and design information completed to date under Department of Energy 

contracts related to magnetohydrodynamics retrofit systems and to determine whether any further 

Federal investment in this technology is warranted. 

(b) SOLICITATION OF PROPOSALS- In order to carry out the program authorized in subsection (a), 

the Secretary may solicit proposals from the private sector and seek to enter into an agreement with 

appropriate parties. 

SEC. 1312. OIL SUBSTITUTION THROUGH COAL LIQUEFACTION. 

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(a) PROGRAM DIRECTION- The Secretary shall conduct a program of research, development, 

demonstration, and commercial application for the purpose of developing economically and 

environmentally acceptable advanced technologies for oil substitution through coal liquefaction. 

(b) PROGRAM GOALS- The goals of the program established under subsection (a) shall include-- 

(1) improved resource selection and product quality; 

(2) the development of technologies to increase net yield of liquid fuel product per ton of coal; 

(3) an increase in overall thermal efficiency; and 

(4) a reduction in capital and operating costs through technology improvements. 

(c) PROPOSALS- Within 180 days after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

SEC. 1313. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for carrying out this subtitle $278,139,000 for 

fiscal year 1993 and such sums as may be necessary for fiscal years 1994 through 1997. 

Subtitle B--Clean Coal Technology Program 

SEC. 1321. ADDITIONAL CLEAN COAL TECHNOLOGY SOLICITATIONS. 

(a) PROGRAM DESIGN- Additional clean coal technology solicitations described in subsection (b) 

shall be designed to ensure the timely development of cost-effective technologies or energy production 

processes or systems utilizing coal that achieve greater efficiency in the conversion of coal to useful 

energy when compared to currently commercially available technology for the use of coal and the 

control of emissions from the combustion of coal. Such program shall be designed to ensure, to the 

greatest extent possible, the availability for commercial use of such technologies by the year 2010. 

(b) ADDITIONAL SOLICITATIONS- In conducting the Clean Coal Program established by Public Law 

98-473, the Secretary shall consider the potential benefits of conducting additional solicitations pursuant 

to such program and, based on the results of that consideration, may carry out such additional 

solicitations, which shall be similar in scope and percentage of Federal cost sharing as that provided by 

Public Law 101-121. 

Subtitle C--Other Coal Provisions 

SEC. 1331. CLEAN COAL TECHNOLOGY EXPORT PROMOTION AND 

INTERAGENCY COORDINATION. 

(a) ESTABLISHMENT- There shall be established within the Trade Promotion Coordinating Committee 

(established by the President on May 23, 1990) a Clean Coal Technology Subgroup (in this subtitle 

referred to as the `CCT Subgroup') to focus interagency efforts on clean coal technologies. The CCT 

Subgroup shall seek to expand the export and use of clean coal technologies, particularly in those 

countries which can benefit from gains in the efficiency of, and the control of environmental emissions 

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from, coal utilization. 

(b) MEMBERSHIP- The CCT Subgroup shall include 1 member from each agency represented on the 

Energy, Environment, and Infrastructure Working Group of the Trade Promotion Coordinating 

Committee as of the date of enactment of this Act. The Secretary shall serve as chair of the CCT 

Subgroup and shall be responsible for ensuring that the functions of the CCT Subgroup are carried out 

through its member agencies. 

(c) CONSULTATION- (1) In carrying out this section, the CCT Subgroup shall consult with 

representatives from the United States coal industry, representatives of railroads and other transportation 

industries, organizations representing workers, the electric utility industry, manufacturers of equipment 

utilizing clean coal technology, members of organizations formed to further the goals of environmental 

protection or to promote the development and use of clean coal technologies that are developed, 

manufactured, or controlled by United States firms, and other appropriate interested members of the 

public. 

(2) The CCT Subgroup shall maintain ongoing liaison with other elements of the Trade Promotion 

Coordinating Committee relating to clean coal technologies or regions where these technologies could be 

important, including Eastern Europe, Asia, and the Pacific. 

(d) DUTIES- The Secretary, acting through the CCT Subgroup, shall-- 

(1) facilitate the establishment of technical training for the consideration, planning, construction, 

and operation of clean coal technologies by end users and international development personnel; 

(2) facilitate the establishment of and, where practicable, cause to be established, consistent with 

the goals and objectives stated in section 1301(a), within existing departments and agencies-- 

(A) financial assistance programs (including grants, loan guarantees, and no interest and low 

interest loans) to support prefeasibility and feasibility studies for projects that will utilize 

clean coal technologies; and 

(B) loan guarantee programs, grants, and no interest and low interest loans designed to 

facilitate access to capital and credit in order to finance such clean coal technology projects; 

(3) develop and ensure the execution of programs, including the establishment of financial 

incentives, to encourage and support private sector efforts in exports of clean coal technologies 

that are developed, manufactured, or controlled by United States firms; 

(4) encourage the training in, and understanding of, clean coal technologies by representatives of 

foreign companies or countries intending to use coal or clean coal technologies by providing 

technical or financial support for training programs, workshops, and other educational programs 

sponsored by United States firms; 

(5) educate loan officers and other officers of international lending institutions, commercial and 

energy attaches of the United States, and such other personnel as the CCT Subgroup considers 

appropriate, for the purposes of providing information about clean coal technologies to foreign 

governments or potential project sponsors of clean coal technology projects; 

(6) develop policies and practices to be conducted by commercial and energy attaches of the 

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United States, and such other personnel as the CCT Subgroup considers appropriate, in order to 

promote the exports of clean coal technologies to those countries interested in or intending to 

utilize coal resources; 

(7) augment budgets for trade and development programs supported by Federal agencies for the 

purpose of financially supporting prefeasibility or feasibility studies for projects in foreign 

countries that will utilize clean coal technologies; 

(8) review ongoing clean coal technology projects and review and advise Federal agencies on the 

approval of planned clean coal technology projects which are sponsored abroad by any Federal 

agency to determine whether such projects are consistent with the overall goals and objectives of 

this section; 

(9) coordinate the activities of the appropriate Federal agencies in order to ensure that Federal 

clean coal technology export promotion policies are implemented in a timely fashion; 

(10) work with CCT Subgroup member agencies to develop an overall strategy for promoting 

clean coal technology exports, including setting goals and allocating specific responsibilities 

among member agencies, consistent with applicable statutes; and 

(11) coordinate with multilateral institutions to ensure that United States technologies are properly 

represented in their projects. 

(e) DATA AND INFORMATION- (1) The CCT Subgroup, consistent with other applicable provisions 

of law, shall ensure the development of a comprehensive data base and information dissemination 

system, using the National Trade Data Bank and the Commercial Information Management System of 

the Department of Commerce, relating to the availability of clean coal technologies and the potential 

need for such technologies, particularly in developing countries and countries making the transition from 

nonmarket to market economies. 

(2) The Secretary, acting through the CCT Subgroup, shall assess and prioritize foreign markets that 

have the most potential for the export of clean coal technologies that are developed, manufactured, or 

controlled by United States firms. Such assessment shall include-- 

(A) an analysis of the financing requirements for clean coal technology projects in foreign 

countries and whether such projects are dependent upon financial assistance from foreign countries 

or multilateral institutions; 

(B) the availability of other fuel or energy resources that may be available to meet the energy 

requirements intended to be met by the clean coal technology projects; 

(C) the priority of environmental considerations in the selection of such projects; 

(D) the technical competence of those entities likely to be involved in the planning and operation 

of such projects; 

(E) an objective comparison of the environmental, energy, and economic performance of each 

clean coal technology relative to conventional technologies; 

(F) a list of United States vendors of clean coal technologies; and

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(G) answers to commonly asked questions about clean coal technologies, 

The Secretary, acting through the CCT Subgroup, shall make such information available to the House of 

Representatives and the Senate, and to the appropriate committees of each House of Congress, industry, 

Federal and international financing organizations, nongovernmental organizations, potential customers 

abroad, governments of countries where such clean coal technologies might be used, and such others as 

the CCT Subgroup considers appropriate. 

(f) REPORT- Within 180 days after the Secretary submits the report to the Congress as required by 

section 409 of Public Law 101-549, the Secretary, acting through the CCT Subgroup, shall provide to the 

appropriate committees of the House of Representatives and the Committee on Energy and Natural 

Resources of the Senate, a plan which details actions to be taken in order to address those 

recommendations and findings made in the report submitted pursuant to section 409 of Public Law 101-

549. As a part of the plan required by this subsection, the Secretary, acting through the CCT Subgroup, 

shall specifically address the adequacy of financial assistance available from Federal departments and 

agencies and international financing organizations to aid in the financing of prefeasibility and feasibility 

studies and projects that would use a clean coal technology in developing countries and countries making 

the transition from nonmarket to market economies. 

SEC. 1332. INNOVATIVE CLEAN COAL TECHNOLOGY TRANSFER PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM- The Secretary, through the Agency for International 

Development, and in consultation with the other members of the CCT Subgroup, shall establish a clean 

coal technology transfer program to carry out the purposes described in subsection (b). Within 150 days 

after the date of enactment of this Act, the Secretary and the Administrator of the Agency for 

International Development shall enter into a written agreement to carry out this section. The agreement 

shall establish a procedure for resolving any disputes between the Secretary and the Administrator 

regarding the implementation of specific projects. With respect to countries not assisted by the Agency 

for International Development, the Secretary may enter into agreements with other appropriate United 

States agencies. If the Secretary and the Administrator, or the Secretary and an agency described in the 

previous sentence, are unable to reach an agreement, each shall send a memorandum to the President 

outlining an appropriate agreement. Within 90 days after receipt of either memorandum, the President 

shall determine which version of the agreement shall be in effect. Any agreement entered into under this 

subsection shall be provided to the appropriate committees of the Congress and made available to the 

public. 

(b) PURPOSES OF THE PROGRAM- The purposes of the technology transfer program under this 

section are to-- 

(1) reduce the United States balance of trade deficit through the export of United States energy 

technologies and technological expertise; 

(2) retain and create manufacturing and related service jobs in the United States; 

(3) encourage the export of United States technologies, including services related thereto, to those 

countries that have a need for developmentally sound facilities to provide energy derived from 

coal resources; 

(4) develop markets for United States technologies and, where appropriate, United States coal 

resources to be utilized in meeting the energy and environmental requirements of foreign 

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countries; 

(5) better ensure that United States participation in energy-related projects in foreign countries 

includes participation by United States firms as well as utilization of United States technologies 

that have been developed or demonstrated in the United States through publicly or privately 

funded demonstration programs; 

(6) provide for the accelerated deployment of United States technologies that will serve to 

introduce into foreign countries United States technologies intended to use coal resources in a 

more efficient, cost-effective, and environmentally acceptable manner; 

(7) serve to ensure the introduction of United States firms and expertise in foreign countries; 

(8) provide financial assistance by the Federal Government to foster greater participation by 

United States firms in the financing, ownership, design, construction, or operation of clean coal 

technology projects in foreign countries; 

(9) assist foreign countries in meeting their energy needs through the use of coal in an 

environmentally acceptable manner, consistent with sustainable development policies; and 

(10) assist United States firms, especially firms that are in competition with firms in foreign 

countries, to obtain opportunities to transfer technologies to, or undertake projects in, foreign 

countries. 

(c) IDENTIFICATION- Pursuant to the agreements required by subsection (a), the Secretary, through 

the Agency for International Development, and after consultation with the CCT Subgroup, United States 

firms, and representatives from foreign countries, shall develop mechanisms to identify potential energy 

projects in host countries, and shall identify a list of such projects within 240 days after the date of 

enactment of this Act, and periodically thereafter. 

(d) FINANCIAL MECHANISMS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall-- 

(A) establish appropriate financial mechanisms to increase the participation of United States firms 

in energy projects utilizing United States clean coal technologies, and services related thereto, in 

developing countries and countries making the transition from nonmarket to market economies; 

(B) utilize available financial assistance authorized by this section to counterbalance assistance 

provided by foreign governments to non-United States firms; and 

(C) provide financial assistance to support projects, including-- 

(i) financing the incremental costs of a clean coal technology project attributable only to 

expenditures to prevent or abate emissions; 

(ii) providing the difference between the costs of a conventional energy project in the host 

country and a comparable project that would utilize a clean coal technology capable of 

achieving greater efficiency of energy products and improved environmental emissions 

compared to such conventional project; and

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(iii) such other forms of financial assistance as the Secretary, through the Agency for 

International Development, considers appropriate. 

(2) The financial assistance authorized by this section may be-- 

(A) provided in combination with other forms of financial assistance, including non-United States 

funding that is available to the project; and 

(B) utilized to assist United States firms to develop innovative financing packages for clean coal 

technology projects that seek to utilize other financial assistance programs available through other 

Federal agencies. 

(3) United States obligations under the Arrangement on Guidelines for Officially Supported Export 

Credits established through the Organization for Economic Cooperation and Development shall be 

applicable to this section. 

(e) SOLICITATIONS FOR PROJECT PROPOSALS- (1) Pursuant to the agreements under subsection 

(a), the Secretary, through the Agency for International Development, within one year after the date of 

enactment of this Act, and subsequently as appropriate thereafter, shall solicit proposals from United 

States firms for the design, construction, testing, and operation of the project or projects identified under 

subsection (c) which propose to utilize a United States technology. Each solicitation under this section 

shall establish a closing date for receipt of proposals. 

(2) The solicitation under this subsection shall, to the extent appropriate, be modeled after the RFP No. 

DE-PS01-90FE62271 Clean Coal Technology IV as administered by the Department of Energy. 

(3) Any solicitation made under this subsection shall include the following requirements: 

(A) The United States firm that submits a proposal in response to the solicitation shall have an 

equity interest in the proposed project. 

(B) The project shall utilize a United States clean coal technology, including services related 

thereto, and, where appropriate, United States coal resources, in meeting the applicable energy and 

environmental requirements of the host country. 

(C) Proposals for projects shall be submitted by and undertaken with a United States firm, 

although a joint venture or other teaming arrangement with a non-United States manufacturer or 

other non-United States entity is permissible. 

(f) ASSISTANCE TO UNITED STATES FIRMS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the CCT 

Subgroup, shall establish a procedure to provide financial assistance to United States firms under this 

section for a project identified under subsection (c) where solicitations for the project are being 

conducted by the host country or by a multilateral lending institution. 

(g) OTHER PROGRAM REQUIREMENTS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the CCT 

Subgroup, shall-- 

(1) establish eligibility criteria for countries that will host projects;

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(2) periodically review the energy needs of such countries and export opportunities for United 

States firms for the development of projects in such countries; 

(3) consult with government officials in host countries and, as appropriate, with representatives of 

utilities or other entities in host countries, to determine interest in and support for potential 

projects; and 

(4) determine whether each project selected under this section is developmentally sound, as 

determined under the criteria developed by the Development Assistance Committee of the 

Organization for Economic Cooperation and Development. 

(h) SELECTION OF PROJECTS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall, not later than 120 days after receipt of 

proposals in response to a solicitation under subsection (e), select one or more proposals under this 

section. 

(2) In selecting a proposal under this section, the Secretary, through the Agency for International 

Development, shall consider-- 

(A) the ability of the United States firm, in cooperation with the host country, to undertake and 

complete the project; 

(B) the degree to which the equipment to be included in the project is designed and manufactured 

in the United States; 

(C) the long-term technical and competitive viability of the United States technology, and services 

related thereto, and the ability of the United States firm to compete in the development of 

additional energy projects using such technology in the host country and in other foreign countries;

(D) the extent of technical and financial involvement of the host country in the project; 

(E) the extent to which the proposed project meets the goals and objectives stated in section 1301

(a); 

(F) the extent of technical, financial, management, and marketing capabilities of the participants in 

the project, and the commitment of the participants to completion of a successful project in a 

manner that will facilitate acceptance of the United States technology for future application; and 

(G) such other criteria as may be appropriate. 

(3) In selecting among proposed projects, the Secretary shall seek to ensure that, relative to otherwise 

comparable projects in the host country, a selected project will meet 1 or more of the following criteria: 

(A) It will reduce environmental emissions to an extent greater than required by applicable 

provisions of law. 

(B) It will increase the overall efficiency of the utilization of coal, including energy conversion 

efficiency and, where applicable, production of products derived from coal. 

(C) It will be a more cost-effective technological alternative, based on life cycle capital and 

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operating costs per unit of energy produced and, where applicable, costs per unit of product 

produced. 

Priority in selection shall be given to those projects which, in the judgment of the Secretary, best meet 

one or more of these criteria. 

(i) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHIP- Activities carried out under this 

section shall be coordinated with the United States-Asia Environmental Partnership. 

(j) BUY AMERICA- In carrying out this section, the Secretary, through the Agency for International 

Development, and pursuant to the agreements under subsection (a), shall ensure-- 

(1) the maximum percentage, but in no case less than 50 percent, of the cost of any equipment 

furnished in connection with a project authorized under this section shall be attributable to the 

manufactured United States components of such equipment; and 

(2) the maximum participation of United States firms. 

In determining whether the cost of United States components equals or exceeds 50 percent, the cost of 

assembly of such United States components in the host country shall not be considered a part of the cost 

of such United States component. 

(k) REPORTS TO CONGRESS- The Secretary and the Administrator of the Agency for International 

Development shall report annually to the Committee on Energy and Natural Resources of the Senate and 

the appropriate committees of the House of Representatives on the progress being made to introduce 

clean coal technologies into foreign countries. 

(l) DEFINITION- For purposes of this section, the term `host country' means a foreign country which is-

- 

(1) the participant in or the site of the proposed clean coal technology project; and 

(2) either-- 

(A) classified as a country eligible to participate in development assistance programs of the 

Agency for International Development pursuant to applicable law or regulation; or 

(B) a developing country or country with an economy in transition from a nonmarket to a 

market economy. 

(m) AUTHORIZATION FOR PROGRAM- There are authorized to be appropriated to the Secretary to 

carry out the program required by this section, $100,000,000 for each of the fiscal years 1993, 1994, 

1995, 1996, 1997, and 1998. 

SEC. 1333. CONVENTIONAL COAL TECHNOLOGY TRANSFER. 

If the Secretary determines that the utilization of a clean coal technology is not practicable for a 

proposed project and that a United States conventional coal technology would constitute a substantial 

improvement in efficiency, costs, and environmental performance relative to the technology being used 

in a developing country or country making the transition from nonmarket to market economies, with 

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significant indigenous coal resources, such technology shall, for purposes of sections 1321 and 1322, be 

considered a clean coal technology. In the case of combustion technologies, only the retrofit, repowering, 

or replacement of a conventional technology shall constitute a substantial improvement for purposes of 

this section. In carrying out this section, the Secretary shall give highest priority to promoting the most 

environmentally sound and energy efficient technologies. 

SEC. 1334. STUDY OF UTILIZATION OF COAL COMBUSTION BYPRODUCTS. 

(a) DEFINITION- As used in this section, the term `coal combustion byproducts' means the residues 

from the combustion of coal including ash, slag, and flue gas desulfurization materials. 

(b) STUDY AND REPORT TO CONGRESS- (1) The Secretary shall conduct a detailed and 

comprehensive study on the institutional, legal, and regulatory barriers to increased utilization of coal 

combustion byproducts by potential governmental and commercial users. Such study shall identify and 

investigate barriers found to exist at the Federal, State, or local level, which may have limited or may 

have the foreseeable effect of limiting the quantities of coal combustion byproducts that are utilized. In 

conducting this study, the Secretary shall consult with other departments and agencies of the Federal 

Government, appropriate State and local governments, and the private sector. 

(2) Not later than one year after the date of enactment of this Act, the Secretary shall submit a report to 

the Congress containing the results of the study required by paragraph (1) and the Secretary's 

recommendations for action to be taken to increase the utilization of coal combustion byproducts. At a 

minimum, such report shall identify actions that would increase the utilization of coal combustion 

byproducts in-- 

(A) bridge and highway construction; 

(B) stabilizing wastes; 

(C) procurement by departments and agencies of the Federal Government and State and local 

governments; and 

(D) federally funded or federally subsidized procurement by the private sector. 

SEC. 1335. CALCULATION OF AVOIDED COST. 

Nothing in section 210 of the Public Utility Regulatory Policies Act of 1978 (Public Law 95-617) 

requires a State regulatory authority or nonregulated electric utility to treat a cost reasonably identified to 

be incurred or to have been incurred in the construction or operation of a facility or a project which has 

been selected by the Department of Energy and provided Federal funding pursuant to the Clean Coal 

Program authorized by Public Law 98-473 as an incremental cost of alternative electric energy. 

SEC. 1336. COAL FUEL MIXTURES. 

Within one year following the date of enactment of this Act, the Secretary shall submit a report to the 

Committee on Energy and Commerce and the Committee on Science, Space, and Technology of the 

House of Representatives and the Committee on Energy and Natural Resources of the Senate on the 

status of technologies for combining coal with other materials, such as oil or water fuel mixtures. The 

report shall include-- 

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(1) a technical and economic feasibility assessment of such technologies; 

(2) projected developments in such technologies; 

(3) an assessment of the market potential of such technologies, including the potential to displace 

imported crude oil and refined petroleum products; 

(4) identification of barriers to commercialization of such technologies; and 

(5) recommendations for addressing barriers to commercialization. 

SEC. 1337. NATIONAL CLEARINGHOUSE. 

(a) FEASIBILITY- (1) The Secretary shall assess the feasibility of establishing a national clearinghouse 

for the exchange and dissemination of technical information on technology relating to coal and coalderived fuels. 

(2) In assessing the feasibility, the Secretary shall consider whether such a clearinghouse would be 

appropriate for purposes of-- 

(A) collecting information and data on technology relating to coal, and coal-derived fuels, which 

can be utilized to improve environmental quality and increase energy independence; 

(B) disseminating to appropriate individuals, governmental departments, agencies, and 

instrumentalities, institutions of higher education, and other entities, information and data 

collected pursuant to this section; 

(C) maintaining a library of technology publications and treatises relating to technology 

information and data collected pursuant to this section; 

(D) organizing and conducting seminars for government officials, utilities, coal companies, and 

other entities or institutions relating to technology using coal and coal-derived fuels that will 

improve environmental quality and increase energy independence; 

(E) gathering information on research grants made for the purpose of improving or enhancing 

technology relating to the use of coal, and coal-derived fuels, which will improve environmental 

quality and increase energy independence; 

(F) translating into English foreign research papers, articles, seminar proceedings, test results that 

affect, or could affect, clean coal use technology, and other documents; 

(G) encouraging, during the testing of technologies, the use of coal from a variety of domestic 

sources, and collecting or developing, or both, complete listings of test results using coals from all 

sources; 

(H) establishing and maintaining an index or compilation of research projects relating to clean coal 

technology carried out throughout the world; and 

(I) conducting economic modeling for feasibility of projects.

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(b) AUTHORITY TO ESTABLISH CLEARINGHOUSE- Based upon the assessment under subsection 

(a), the Secretary may establish a clearinghouse. 

SEC. 1338. COAL EXPORTS. 

(a) PLAN- Within 180 days after the date of enactment of this Act, the Secretary of Commerce, in 

cooperation with the Secretary and other appropriate Federal agencies, shall submit to the appropriate 

committees of the House of Representatives and the Committee on Energy and Natural Resources of the 

Senate a plan for expanding exports of coal mined in the United States. 

(b) PLAN CONTENTS- The plan submitted under subsection (a) shall include-- 

(1) a description of the location, size, and projected growth in potential export markets for coal 

mined in the United States; 

(2) the identification by country of the foreign trade barriers to the export of coal mined in the 

United States, including foreign coal production and utilization subsidies, tax treatment, labor 

practices, tariffs, quotas, and other nontariff barriers; 

(3) recommendations and a plan for addressing any such trade barriers; 

(4) an evaluation of existing infrastructure in the United States and any new infrastructure 

requirements in the United States to support an expansion of exports of coal mined in the United 

States, including ports, vessels, rail lines, and any other supporting infrastructure; and 

(5) an assessment of environmental implications of coal exports and the identification of export 

opportunities for blending coal mined in the United States with coal indigenous to other countries 

to enhance energy efficiency and environmental performance. 

SEC. 1339. OWNERSHIP OF COALBED METHANE. 

(a) FEDERAL LANDS AND MINERAL RIGHTS- In the case of any deposit of coalbed methane where 

the United States is the owner of the surface estate or where the United States has transferred the surface 

estate but reserved the subsurface mineral estate, the Secretary of the Interior shall administer this 

section. This section and the definitions contained herein shall be applicable only on lands within 

Affected States. 

(b) AFFECTED STATES- Not later than 180 days after the date of enactment of this Act, the Secretary 

of the Interior, with the participation of the Secretary of Energy, shall publish in the Federal Register a 

list of Affected States which shall be comprised of States-- 

(1) in which the Secretary of the Interior, with the participation of the Secretary of Energy, 

determines that disputes, uncertainty, or litigation exist, regarding the ownership of coalbed 

methane gas; 

(2) in which the Secretary of the Interior, with the participation of the Secretary of Energy, 

determines that development of significant deposits of coalbed methane gas is being impeded by 

such existing disputes, uncertainty, or litigation regarding ownership of such coalbed methane; 

(3) which do not have in effect a statutory or regulatory procedure or existing case law permitting

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and encouraging the development of coalbed methane gas within that State; and 

(4) which do not have extensive development of coalbed methane gas. 

The Secretary of the Interior, with the participation of the Secretary of Energy, shall revise such list of 

Affected States from time to time. Any Affected State shall be deleted from the list of Affected States 

upon the receipt by the Secretary of the Interior of a Governor's petition requesting such deletion, a State 

law requesting such deletion, or a resolution requesting such deletion enacted by the legislative body of 

the State. A Governor intending to petition the Secretary of the Interior to delete a State from the list of 

Affected States shall provide the State's legislative body with 6 months notice of such petition during a 

legislative session. At the end of such 6-month period, the Governor may petition the Secretary of the 

Interior to delete a State from the list of Affected States, unless during such 6-month period, the State's 

legislative body has enacted a law or resolution disapproving the Governor's petition. Until the Secretary 

of the Interior, with the participation of the Secretary of Energy, publishes a different list, the States of 

West Virginia, Pennsylvania, Kentucky, Ohio, Tennessee, Indiana, and Illinois shall be the Affected 

States, effective on the date of the enactment of this Act. The States of Colorado, Montana, New Mexico, 

Wyoming, Utah, Virginia, Washington, Mississippi, Louisiana, and Alabama shall not be included on 

the Secretary of the Interior's list of Affected States or any extension or revision thereof. 

(c) FAILURE TO ADOPT STATUTORY OR REGULATORY PROCEDURE- If an Affected State has 

not placed in effect, by statute or by regulation, a substantial program promoting the permitting, drilling 

and production of coalbed methane wells (including pooling arrangements) within that State within 3 

years after becoming an Affected State, the Secretary of the Interior, with the participation of the 

Secretary of Energy, shall administer this section and shall promulgate such regulations as are necessary 

to carry out this section in that State. 

(d) IMPLEMENTATION BY THE SECRETARY OF THE INTERIOR- In implementing this section, 

the Secretary of the Interior, with the participation of the Secretary of Energy, shall-- 

(A) consider existing and future coal mining plans, 

(B) preserve the mineability of coal seams, and 

(C) provide for the prevention of waste and maximization of recovery of coal and coalbed methane 

gas in a manner which will protect the rights of all entities owning an interest in such coalbed 

methane resource. 

(e) SPACING- Except where State law in an Affected State contains existing spacing requirements 

regarding the minimum distance between coalbed methane wells and the minimum distance of a coalbed 

methane well from a property line, the Secretary of the Interior shall establish such requirements within 

90 days after the assertion of jurisdiction pursuant to subsection (c) of this section. 

(f) SPACING UNITS- Applications to establish spacing units for the drilling and operation of coalbed 

methane gas wells may be filed by any entity claiming a coalbed methane ownership interest within a 

proposed spacing unit. Upon receipt and approval of an application, the Secretary of the Interior shall 

issue an order establishing the boundaries of the coalbed methane spacing unit. Spacing units shall 

generally be uniform in size. 

(g) DEVELOPMENT UNDER POOLING ARRANGEMENT- Following issuance of an order 

establishing a spacing unit under subsection (f), and pursuant to an application for pooling filed by the 

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entity claiming a coalbed methane ownership interest and proposing to drill a coalbed methane gas well, 

the Secretary of the Interior shall hold a hearing to consider the application for pooling and shall, if the 

criteria of this section are met, issue an order allowing the proposed pooling of acreage within the 

designated spacing unit for purposes of drilling and production of coalbed methane from the spacing 

unit. The pooling order shall not be issued before notice or a reasonable and diligent effort to provide 

notice has been made to each entity which may claim an ownership interest in the coalbed methane gas 

within such spacing unit and each such entity has been offered an opportunity to appear before the 

Secretary of the Interior at the hearing. Upon issuance of a pooling order, each owner or claimant of an 

ownership interest shall be allowed to make one of the following elections: 

(1) An election to sell or lease its coalbed methane ownership interest to the unit operator at a rate 

determined by the Secretary of the Interior as set forth in the pooling order. 

(2) An election to become a participating working interest owner by bearing a share of the risks 

and costs of drilling, completing, equipping, gathering, operating (including all disposal costs), 

plugging and abandoning the well, and receiving a share of production from the well. 

(3) An election to share in the operation of the well as a nonparticipating working interest owner 

by relinquishing its working interest to participating working interest owners until the proceeds 

allocable to its share equal 300 percent of the share of such costs allocable to its interest. 

Thereafter, the nonparticipating working interest owner shall become a participating working 

interest owner. 

The pooling order shall designate a unit operator who shall be authorized to drill and operate the spacing 

unit. The pooling order shall provide that any entity claiming an ownership interest in the coalbed 

methane within such spacing unit which does not make an election under the pooling order shall be 

deemed to have leased its coalbed methane interest to the unit operator under such terms and conditions 

as the pooling order may provide. No pooling order may be issued under this paragraph for any spacing 

unit if all entities claiming an ownership interest in the coalbed methane in the spacing unit have entered 

into a voluntary agreement providing for the drilling and operation of the coalbed methane gas well for 

the spacing unit. 

(h) ESCROW ACCOUNT- (1) Each pooling order issued under subsection (g) shall provide for the 

establishment of an escrow account into which the payment of costs and proceeds attributable to the 

conflicting interests shall be deposited and held for the interest of the claimants as follows: 

(A) Each participating working interest owner, except for the unit operator, shall deposit in the 

escrow account its proportionate share of the costs allocable to the ownership interest claimed by 

each such participating working interest owner as set forth in the pooling order issued by the 

Secretary of the Interior. 

(B) The unit operator shall deposit in the escrow account all proceeds attributable to the 

conflicting interests of lessees, plus all proceeds in excess of ongoing operational expenses 

(including reasonable overhead costs) attributable to conflicting working interests. 

(2) The Secretary of the Interior shall order payment of principal and accrued interest from the escrow 

account to all legally entitled entities within 30 days of receipt by the Secretary of the Interior of 

notification of the final legal determination of entitlement or upon agreement of all entities claiming an 

ownership interest in the coalbed methane gas. Upon such final determination-- 

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(A) each legally entitled participating working interest owner shall receive a proportionate share of 

the proceeds attributable to the conflicting ownership interest; 

(B) each legally entitled nonparticipating working interest owner shall receive a proportionate 

share of the proceeds attributable to the conflicting ownership interest, less the cost of being 

carried as a nonparticipating working interest owner (as determined by the election of the entity 

under the applicable pooling order); 

(C) each entity leasing (or deemed to have leased) its coalbed methane ownership interest to the 

unit operator shall receive a share of the royalty proceeds (as set out in the applicable pooling 

order) attributable to the conflicting interests of lessees; and 

(D) the unit operator shall receive the costs contributed to the escrow account by each legally 

entitled participating working interest owner. 

The Secretary of the Interior shall enact rules and regulations for the administration and protection of 

funds delivered to the escrow accounts. 

(i) APPROVAL OF THE SECRETARY OF THE INTERIOR- No entity may drill any well for the 

production of coalbed methane gas from a coal seam, subject to the provisions of subsection (g), in an 

Affected State unless the drilling of such well has been approved by the Secretary of the Interior. 

(j) AUTHORIZATION TO STIMULATE A COAL SEAM- (1) No operator of a coalbed methane well 

may stimulate a coal seam without the written consent of each entity which, at the time that the coalbed 

methane operator applies for a drilling permit, is operating a coal mine, or has by virtue of his property 

rights in the coal the ability to operate a coal mine, located within a horizontal or vertical distance from 

the point of stimulation as established by the Secretary of the Interior pursuant to paragraph (3) of this 

subsection. In seeking the coal operator's consent, a coalbed methane well operator shall provide the coal 

operator with necessary information about such stimulation, including relevant information to ensure 

compliance with coal mine safety laws and rules. 

(2) In the absence of a written consent pursuant to paragraph (1) and at the request of a coalbed methane 

operator, the Secretary of the Interior shall make a determination regarding stimulation of a coal seam. 

Such request shall include an affidavit which shall-- 

(A) state that an entity from which consent is required pursuant to paragraph (1) has refused to 

provide written consent; 

(B) set forth in detail the efforts undertaken by the applicant to obtain such written consent; 

(C) state the known reasons for the consent not being provided; 

(D) set forth the conditions and compensation, if any, offered by the applicant as part of the efforts 

to obtain consent; and 

(E) provide prima facie evidence that the method of stimulation proposed by the coalbed methane 

operator will not (i) cause unreasonable loss or damage to the coal seam considering all factors, 

including the prospect, taking into consideration the economics of the coal industry, that coal 

seams for which no actual or proposed mining plans exist will be mined at some future date, or (ii) 

violate mine safety requirements. If a denial of consent by a coal operator is based on reasons 

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related to safety, the Secretary of the Interior shall seek the views and recommendations of the 

appropriate State or Federal coal mine safety agency. Any determination by the Secretary of the 

Interior shall be in accordance with all applicable Federal and State coal mine safety laws and such 

views and recommendations. A determination by the Secretary of the Interior approving a method 

of stimulation may include reasonable conditions including, but not limited to, conditions to 

mitigate, to the extent practicable, economic damage to the coal seam. Any determination 

approving or denying a method of stimulation by the Secretary of the Interior shall be subject to 

appeal. Interested entities shall be allowed to participate in and comment on proceedings under 

this paragraph. 

(3) The Secretary of the Interior shall by rule establish, for an Affected State, a region thereof, or a multiState region comprised of Affected States, the boundaries within which a coalbed methane operator shall 

be required to obtain written consent from a coal operator pursuant to paragraph (1). Such boundaries 

shall be stated in terms of a horizontal and a vertical distance from the point of stimulation and shall be 

determined based on an evaluation of the maximum length, height and depth of fracture producible in a 

coal seam in such Affected State, region thereof, or multi-State region comprised of Affected States. 

(4) The consent required under this subsection shall in no way be deemed to impair, abridge, or affect 

any contractual rights or objections arising out of a coalbed methane gas contract or coalbed methane gas 

lease in existence as of the effective date of this section between the coalbed methane operator and the 

coal operator, and the existence of such lease or contractual agreement and any extensions or renewals of 

such lease shall be deemed to fully meet the requirements of this section. 

(5) Nothing in this subsection precludes either a coal operator or a coalbed methane operator from 

seeking in the appropriate State forum compensation for the consequences of a determination by the 

Secretary of the Interior pursuant to paragraph (2). 

(k) NOTICE AND OBJECTION- (1) The Secretary of the Interior shall not approve the drilling of any 

coalbed methane well unless the unit operator has notified each entity which is operating, or has the 

ability, by virtue of his property rights in the coal, to operate, a coal mine in any portion of the coalbed 

that would be affected by such well within the distances established pursuant to the rules promulgated 

under subsection (j)(3). Any notified entity may object to the drilling of such well within 30 days after 

receipt of a notice. Upon receipt of a timely objection to the drilling of any coalbed methane gas well 

submitted by a notified entity, the Secretary of the Interior may refuse to approve the drilling of the well 

based on any of the following: 

(A) The proposed activity, due to its proximity to any coal mine opening, shaft, underground 

workings, or to any proposed extension of the coal mine, would adversely affect any operating, 

inactive or abandoned coal mine, including any coal mine already surveyed and platted but not yet 

being operated. 

(B) The proposed activity would not conform with a coal operator's development plan for an 

existing or proposed operation. 

(C) There would be an unreasonable interference from the proposed activity with present or future 

coal mining operations, including the ability to comply with other applicable laws and regulations. 

(D) The presence of evidence indicating that the proposed drilling activities would be unsafe, 

taking into consideration the dangers from creeps, squeezes or other disturbances due to the 

extraction of coal. 

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(E) The proposed activity would unreasonably interfere with the safe recovery of coal, oil and gas. 

(2) In the event the Secretary of the Interior does not approve the drilling of a coalbed methane well 

pursuant to paragraph (1), the Secretary of the Interior shall consider whether such drilling could be 

approved if the unit operator modifies the proposed activities to take into account any of the following: 

(A) The proposed activity could instead be reasonably done through an existing or planned pillar 

of coal, or in close proximity to an existing well or such pillar of coal, taking into consideration 

surface topography. 

(B) The proposed activity could instead be moved to a mined-out area, below the coal outcrop or 

to some other feasible area. 

(C) The unit operator agrees to a drilling moratorium of not more than two years in order to permit 

completion of coal mining operations. 

(D) The practicality of locating the proposed spacing unit or well on a uniform pattern with other 

spacing units or wells. 

(l) PLUGGING- All coalbed methane wells drilled after enactment of this Act that penetrate coal seams 

with remaining reserves shall provide for subsequent safe mining through the well in accordance with 

standards prescribed by the Secretary of the Interior, in consultation with any Federal and State agencies 

having authority over coal mine safety. Well plugging costs should be allocated in accordance with State 

law or private contractual arrangement, as the case may be. 

(m) NOTICE AND OBJECTION BY OTHER PARTIES- The Secretary of the Interior shall not approve 

the drilling of any coalbed methane well unless such well complies with the spacing and other 

requirements established by the Secretary of the Interior and each of the following: 

(1) The unit operator of such well has notified, or has made a reasonable and diligent effort to 

notify, all entities claiming ownership of coalbed methane to be drained by such well and provided 

an opportunity to object in accordance with requirements established by the Secretary of the 

Interior. 

(2) Where conflicting interests exist, an order under subsection (g) establishing pooling 

requirements has been issued. 

The notification requirements of this subsection shall be additional to the notification referred to in 

subsection (k). The Secretary of the Interior shall establish the conditions under which entities claiming 

ownership of coalbed methane may object to the drilling of a coalbed methane well. 

(n) VENTING FOR SAFETY- Nothing in this section shall be construed to prevent or inhibit the entity 

which has the right to develop and mine coal in any mine from venting coalbed methane gas to ensure 

safe mine operations. 

(o) OTHER LAWS- The Secretary of the Interior shall comply with all applicable Federal and State coal 

mine safety laws and regulations. 

(p) DEFINITIONS- As used in this section--

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(1) The term `Affected State' means a State listed by the Secretary of the Interior, with the 

participation of the Secretary of Energy, under subsection (b). 

(2) The term `coalbed methane gas' means occluded natural gas produced (or which may be 

produced) from coalbeds and rock strata associated therewith. 

(3) The term `unit operator' means the entity designated in a pooling order to develop a spacing 

unit by the drilling of one or more wells on the unit. 

(4) The term `nonparticipating working interest owner' means a gas or oil owner of a tract included 

in a spacing unit which elects to share in the operation of the well on a carried basis by agreeing to 

have its proportionate share of the costs allocable to its interest charged against its share of 

production of the well in accordance with subsection (f)(3). 

(5) The term `participating working interest owner' means a gas or oil owner which elects to bear a 

share of the risks and costs of drilling, completing, equipping, gathering, operating (including any 

and all disposal costs) plugging, and abandoning a well on a spacing unit and to receive a share of 

production from the well equal to the proportion which the acreage in the spacing unit it owns or 

holds under lease bears to the total acreage of the spacing unit. 

(6) The term `coal seam' means any stratum of coal 20 inches or more in thickness, unless a 

stratum of less thickness is being commercially worked, or can in the judgment of the Secretary of 

the Interior forseeably be commercially worked and will require protection if wells are being 

drilled through it. 

SEC. 1340. ESTABLISHMENT OF DATA BASE AND STUDY OF TRANSPORTATION RATES. 

(a) DATA BASE- The Secretary shall review the information currently collected by the Federal 

Government and shall determine whether information on transportation rates for rail and pipeline 

transport of domestic coal, oil, and gas during the period of January 1, 1988, through December 31, 

1997, is reasonably available. If he determines that such information is not reasonably available, the 

Secretary shall establish a data base containing, to the maximum extent practicable, information on all 

such rates. The confidentiality of contract rates shall be preserved. To obtain data pertaining to rail 

contract rates, the Secretary shall acquire such data in aggregate form only from the Interstate Commerce 

Commission, under terms and conditions that maintain the confidentiality of such rates. 

(b) STUDY- The Energy Information Administration shall determine the extent to which any agency of 

the Federal Government is studying the rates and distribution patterns of domestic coal, oil, and gas to 

determine the impact of the Clean Air Act as amended by the Act entitled `An Act to amend the Clean 

Air Act to provide for attainment and maintenance of health protective national ambient air quality 

standards, and for other purposes.', enacted November 15, 1990 (Public Law 101-549), and other Federal 

policies on such rates and distribution patterns. If the Energy Information Administration finds that no 

such study is underway, or that reports of the results of such study will not be available to the Congress 

providing the information specified in this subsection and subsection (a) by the dates established in 

subsection (c), the Energy Information Administration shall initiate such a study. 

(c) REPORTS TO CONGRESS- Within one year after the date of enactment of this Act, the Secretary 

shall report to the Congress on the determination the Energy Information Administration is required to 

make under subsection (b). Within three years after the date of enactment of this Act, the Secretary shall 

submit reports on any data base or study developed under this section. Any such reports shall be updated 

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and resubmitted to the Congress within eight years after such date of enactment. If the Energy 

Information Administration has determined pursuant to subsection (b) that another study or studies will 

provide all or part of the information called for in this section, the Secretary shall transmit the results of 

that study by the dates established in this subsection, together with his comments. 

(d) CONSULTATION WITH OTHER AGENCIES- The Secretary and the Energy Information 

Administration shall consult with the Chairmen of the Federal Energy Regulatory Commission and the 

Interstate Commerce Commission in implementing this section. 

SEC. 1341. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for carrying out this subtitle, other than section 

1322, such sums as may be necessary for fiscal years 1993 through 1998. 

TITLE XIV--STRATEGIC PETROLEUM RESERVE 

SEC. 1401. DRAWDOWN AND DISTRIBUTION OF THE RESERVE. 

Section 161 of the Energy Policy and Conservation Act (42 U.S.C. 6241) is amended-- 

(1) in subsection (d)-- 

(A) by striking `(d)' and inserting `(d)(1)'; and 

(B) by adding at the end the following new paragraph: 

`(2) For purposes of this section, in addition to the circumstances set forth in section 3(8), a severe 

energy supply interruption shall be deemed to exist if the President determines that-- 

`(A) an emergency situation exists and there is a significant reduction in supply which is of 

significant scope and duration; 

`(B) a severe increase in the price of petroleum products has resulted from such emergency 

situation; and 

`(C) such price increase is likely to cause a major adverse impact on the national economy.'; and 

(2) in subsection (h)(1)(A), by inserting `or international' after `domestic'. 

SEC. 1402. EXPANSION OF RESERVE. 

Section 154(a) of the Energy Policy and Conservation Act (42 U.S.C. 6234) is amended-- 

(1) by striking `(a)' and inserting `(a)(1)'; and 

(2) by adding at the end the following: 

`(2) Beginning on the date of the enactment of the Energy Policy Act of 1992, the President shall take 

actions to enlarge the Strategic Petroleum Reserve to 1,000,000,000 barrels as rapidly as possible. Such 

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actions may include-- 

`(A) petroleum acquisition, transportation, and injection activities at the highest practicable fill rate 

achievable, subject to the availability of appropriated funds; 

`(B) contracting for petroleum product not owned by the United States as specified in part C; 

`(C) contracting for petroleum product for storage in facilities not owned by the United States, 

except that no such product may be stored in such facilities unless petroleum product stored in 

facilities owned by the United States on the date such product is delivered for storage is at least 

750,000,000 barrels; 

`(D) carrying out the activities described in section 160(h); 

`(E) the transferring of oil from the Naval Petroleum Reserve; and 

`(F) other activities specified in this title.'. 

SEC. 1403. AVAILABILITY OF FUNDING FOR LEASING. 

Section 171 of the Energy Policy and Conservation Act (42 U.S.C. 6249) is amended by adding at the 

end the following new subsection: 

`(f) AVAILABILITY OF FUNDS- The Secretary may utilize such funds as are available in the SPR 

Petroleum Account to carry out the activities described in subsection (a), and may obligate and expend 

such funds to carry out such activities, in advance of the receipt of petroleum products.'. 

SEC. 1404. PURCHASE FROM STRIPPER WELL PROPERTIES. 

(a) IN GENERAL- Section 160 of the Energy Policy and Conservation Act (42 U.S.C. 6240) is amended 

by adding at the end the following new subsection: 

`(h)(1) If the President finds that declines in the production of oil from domestic resources pose a threat 

to national energy security, the President may direct the Secretary to acquire oil from domestic 

production of stripper well properties for storage in the Strategic Petroleum Reserve. Except as provided 

in paragraph (2), the Secretary may set such terms and conditions as he deems necessary for such 

acquisition. 

`(2) Crude oil purchased by the Secretary pursuant to this subsection shall be by competitive bid. The 

price paid by the Secretary-- 

`(A) shall take into account the cost of production including costs of reservoir and well 

maintenance; and 

`(B) shall not exceed the price that would have been paid if the Secretary had acquired petroleum 

products of a similar quality on the open market under competitive bid procedures without regard 

to the source of the petroleum products.'. 

(b) TECHNICAL CORRECTIONS- Part B of title I of such Act is amended--

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(1) in section 167(d), in the matter preceding paragraph (1), by striking `subsection (g)' and 

inserting `under subsection (g)'; and 

(2) in section 160(d)(2)-- 

(A) by striking `(2)(A)' and inserting `(2)'; and 

(B) by redesignating clauses (i), (ii), and (iii) as subparagraphs (A), (B), and (C), 

respectively. 

SEC. 1405. REDESIGNATION OF ISLAND STATES. 

Section 157(a) of the Energy Policy and Conservation Act (42 U.S.C. 6237(a)) is amended-- 

(1) by striking `(a)' and inserting `(a)(1)'; and 

(2) by adding at the end the following new paragraph: 

`(2) For the purpose of carrying out this section-- 

`(A) any State that is an island shall be considered to be a separate Federal Energy Administration 

Region, as defined in title 10, Code of Federal Regulations, as in effect on November 1, 1975; 

`(B) determinations made with respect to Regions, other than States that are islands, shall be made 

as if the islands were not part of the Regions; and 

`(C) with respect to determinations made for any State that is an island, the term `refined 

petroleum product' shall have the same meaning given the term `petroleum product' in section 3

(3).'. 

SEC. 1406. INSULAR AREAS STUDY. 

(a) IN GENERAL- The Secretary shall conduct a study of the implications of the unique vulnerabilities 

of the insular areas to an oil supply disruption. Such study shall outline how the insular areas shall gain 

access to vital oil supplies during times of national emergency. Such study shall be completed and 

submitted to the Congress not later than 9 months after the date of the enactment of this Act. 

(b) DEFINITION- For purposes of this section, the term `insular areas' means the Virgin Islands, Puerto 

Rico, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, and Palau. 

TITLE XV--OCTANE DISPLAY AND DISCLOSURE 

SEC. 1501. CERTIFICATION AND POSTING OF AUTOMOTIVE FUEL RATINGS. 

(a) COVERAGE OF ALL LIQUID AUTOMOTIVE FUELS- Section 201(6) of the Petroleum 

Marketing Practices Act (15 U.S.C. 2821(6)) is amended to read as follows: 

`(6) The term `automotive fuel' means liquid fuel of a type distributed for use as a fuel in any 

motor vehicle.'. 

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(b) AUTOMOTIVE FUEL RATING- Section 201 of such Act (15 U.S.C. 2821) is amended by adding at 

the end the following new paragraphs: 

`(17) The term `automotive fuel rating' means-- 

`(A) the octane rating of an automotive spark-ignition engine fuel; and 

`(B) if provided for by the Federal Trade Commission by rule, the cetane rating of diesel 

fuel oils; or 

`(C) another form of rating determined by the Federal Trade Commission, after consultation 

with the American Society for Testing and Materials, to be more appropriate to carry out the 

purposes of this title with respect to the automotive fuel concerned. 

`(18)(A) The term `cetane rating' means a measure, as indicated by a cetane index or cetane 

number, of the ignition quality of diesel fuel oil and of the influence of the diesel fuel oil on 

combustion roughness. 

`(B) The term `cetane index' and the term `cetane number' have the meanings determined in 

accordance with the test methods set forth in the American Society for Testing and Materials 

standard test methods-- 

`(i) designated D976 or D4737 in the case of cetane index; and 

`(ii) designated D613 in the case of cetane number, 

(as in effect on the date of the enactment of this Act) and shall apply to any grade or type of diesel 

fuel oils defined in the specification of the American Society for Testing and Materials entitled 

`Standard Specification for Diesel Fuel Oils' designated D975 (as in effect on such date).'. 

(c) CONFORMING AMENDMENTS- (1) Section 201 of such Act (15 U.S.C. 2821) is amended-- 

(A) in paragraph (1), by striking out `gasoline' and inserting in lieu thereof `fuel'; 

(B) in paragraph (2)-- 

(i) by striking out `Standard Specifications for Automotive Gasoline' and inserting in lieu 

thereof `Standard Specification for Automotive Spark-Ignition Engine Fuel'; and 

(ii) by striking out `D 439' and inserting in lieu thereof `D4814'; 

(C) in paragraph (4)-- 

(i) by striking out `gasoline' the first place it appears and inserting in lieu thereof 

`automotive fuel'; and 

(ii) by striking out `gasoline' the second place it appears and inserting in lieu thereof `fuel'; 

(D) by striking out paragraph (5) and inserting in lieu thereof the following: 

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`(5) The term `refiner' means any person engaged in the production or importation of automotive 

fuel.'; 

(E) in paragraph (11)-- 

(i) by striking out `octane' each place it appears and inserting in lieu thereof `automotive 

fuel'; and 

(ii) by striking out `gasoline' each place it appears and inserting in lieu thereof `fuel'; and 

(F) in paragraph (16), by striking out `gasoline' each place it appears and inserting in lieu thereof 

`automotive fuel'. 

(2) Section 202 of such Act (15 U.S.C. 2822) is amended-- 

(A) by striking out `octane rating' and `octane ratings' each place such terms appear and inserting 

in lieu thereof `automotive fuel rating' and `automotive fuel ratings', respectively; 

(B) in subsections (a) and (b), by striking out `gasoline' each place it appears and inserting in lieu 

thereof `fuel'; 

(C) in subsection (c)-- 

(i) by striking out `gasoline' each place it appears (other than the second place it appears) 

and inserting in lieu thereof `automotive fuel'; and 

(ii) by striking out `gasoline' the second place it appears and inserting in lieu thereof `fuel'; 

(D) in subsection (d), by striking out `octane' and inserting in lieu thereof `automotive fuel'; 

(E) in subsection (e)-- 

(i) by striking out `gasoline' each place it appears and inserting in lieu thereof `fuel'; and 

(ii) by striking out `gasoline's' and inserting in lieu thereof `fuel's'; 

(F) in subsections (f), (g), and (h), by striking out `gasoline' each place it appears and inserting in 

lieu thereof `fuel'; 

(G) in subsection (h), by striking out `octane requirement' each place it appears and inserting in 

lieu thereof `automotive fuel requirement'; and 

(H) in the section heading, by striking out `OCTANE' and inserting in lieu thereof 

`AUTOMOTIVE FUEL RATING'. 

(3) Section 203 of such Act (15 U.S.C. 2823) is amended-- 

(A) by striking out `octane rating' and `octane ratings' each place such terms appear and inserting 

in lieu thereof `automotive fuel rating' and `automotive fuel ratings', respectively; 

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(B) in subsections (b) and (c), by striking out `gasoline' each place it appears and inserting in lieu 

thereof `fuel'; and 

(C) in subsection (c)(3), by striking out `201(1)' and inserting in lieu thereof `201'. 

(d) EFFECTIVE DATE- (1) The amendments made by this section shall become effective at the end of 

the one-year period beginning on the date of the enactment of this Act. 

(2) The Federal Trade Commission shall, within 270 days after the date of the enactment of this Act, 

prescribe rules for the purpose of implementing the amendments made in this section. 

SEC. 1502. INCREASED AUTHORITY FOR ENFORCEMENT. 

(a) STATE LAW- Section 204 of the Petroleum Marketing Practices Act (15 U.S.C. 2824) is amended to 

read as follows: 

`RELATIONSHIP OF THIS TITLE TO STATE LAW 

`SEC. 204. (a) To the extent that any provision of this title applies to any act or omission, no State or any 

political subdivision thereof may adopt or continue in effect, except as provided in subsection (b), any 

provision of law or regulation with respect to such act or omission, unless such provision of such law or 

regulation is the same as the applicable provision of this title. 

`(b) A State or political subdivision thereof may provide for any investigative or enforcement action, 

remedy, or penalty (including procedural actions necessary to carry out such investigative or 

enforcement actions, remedies, or penalties) with respect to any provision of law or regulation permitted 

by subsection (a).'. 

(b) FTC ENFORCEMENT- Section 203(e) of such Act is amended by striking out `; except that' in the 

second sentence and all that follows through the period and inserting in lieu thereof a period. 

(c) EPA ENFORCEMENT- Section 203(b)(1) of such Act is amended-- 

(1) in the matter preceding subparagraph (A), by striking out `shall'; 

(2) in subparagraph (A), by striking out `conduct' and inserting in lieu thereof `may conduct'; 

(3) in subparagraph (B), by striking out `certify' and inserting in lieu thereof `shall certify'; 

(4) in subparagraph (C), by striking out `notify' and inserting in lieu thereof `shall notify'; and 

(5) in subparagraph (C), by striking out `discovered' and all that follows through `testing'. 

SEC. 1503. STUDIES. 

(a) IN GENERAL- For the purpose of making the findings, conclusions, and recommendations referred 

to in subsection (c)-- 

(1) the Administrator of the Environmental Protection Agency, in consultation with the Secretary

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of Energy, shall carry out a study to determine whether, and if so, how, the anti-knock 

characteristics of nonliquid fuels usable as a fuel for a motor vehicle (as defined in section 201(7) 

of the Petroleum Marketing Practices Act) can be determined; and 

(2) the Federal Trade Commission, in consultation with the Administrator of the Environmental 

Protection Agency, shall carry out a study-- 

(A) to determine the need for, and the desirability of, having a uniform national label on 

devices used to dispense automotive fuel to consumers that would consolidate information 

required by Federal law to be posted on such devices; and 

(B) to determine the nature of such label if it is determined under subparagraph (A) that such 

a need exists. 

(b) IMPLEMENTATION- (1) In carrying out studies under this section, each agency shall-- 

(A) publish general notice of each of the studies in the Federal Register; and 

(B) give interested parties an opportunity to participate in such studies through submission of 

written data, views, or arguments. 

(2) In carrying out the study to determine the nature of a uniform national label under subsection (a)(2)

(B), the Federal Trade Commission shall-- 

(A) weigh the consumer, environmental, and energy saving benefits of any element of such label 

against the necessity for a concise, practical, and cost-efficient label; and 

(B) consider as a possible element of such label a statement suggesting consumers check the 

vehicle's owner's manual regarding octane requirements. 

(c) REPORTS- The Administrator of the Environmental Protection Agency, the Secretary of Energy, and 

the Chairman of the Federal Trade Commission shall transmit to the Congress, within one year after the 

date of the enactment of this Act, the findings, conclusions, and recommendations made as a result of the 

studies carried out by such officers under this section, together with a description of the administrative 

and legislative actions needed to implement such recommendations. 

TITLE XVI--GLOBAL CLIMATE CHANGE 

SEC. 1601. REPORT. 

Not later than 2 years after the date of the enactment of this Act, the Secretary shall submit a report to the 

Congress that includes an assessment of-- 

(1) the feasibility and economic, energy, social, environmental, and competitive implications, 

including implications for jobs, of stabilizing the generation of greenhouse gases in the United 

States by the year 2005; 

(2) the recommendations made in chapter 9 of the 1991 National Academy of Sciences report 

entitled `Policy Implications of Greenhouse Warming', including an analysis of the benefits and 

costs of each recommendation; 

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(3) the extent to which the United States is responding, compared with other countries, to the 

recommendations made in chapter 9 of the 1991 National Academy of Sciences report; 

(4) the feasibility of reducing the generation of greenhouse gases; 

(5) the feasibility and economic, energy, social, environmental, and competitive implications, 

including implications for jobs, of achieving a 20 percent reduction from 1988 levels in the 

generation of carbon dioxide by the year 2005 as recommended by the 1988 Toronto Scientific 

World Conference on the Changing Atmosphere; 

(6) the potential economic, energy, social, environmental, and competitive implications, including 

implications for jobs, of implementing the policies necessary to enable the United States to comply 

with any obligations under the United Nations Framework Convention on Climate Change or 

subsequent international agreements. 

SEC. 1602. LEAST-COST ENERGY STRATEGY. 

(a) STRATEGY- The first National Energy Policy Plan (in this title referred to as the `Plan') under 

section 801 of the Department of Energy Organization Act (42 U.S.C. 7321) prepared and required to be 

submitted by the President to Congress after February 1, 1993, and each subsequent such Plan, shall 

include a least-cost energy strategy prepared by the Secretary. In developing the least-cost energy 

strategy, the Secretary shall take into consideration the economic, energy, social, environmental, and 

competitive costs and benefits, including costs and benefits for jobs, of his choices. Such strategy shall 

also take into account the report required under section 1601 and relevant Federal, State, and local 

requirements. Such strategy shall be designed to achieve to the maximum extent practicable and at leastcost to the Nation-- 

(1) the energy production, utilization, and energy conservation priorities of subsection (d); 

(2) the stabilization and eventual reduction in the generation of greenhouse gases; 

(3) an increase in the efficiency of the Nation's total energy use by 30 percent over 1988 levels by 

the year 2010; 

(4) an increase in the percentage of energy derived from renewable resources by 75 percent over 

1988 levels by the year 2005; and 

(5) a reduction in the Nation's oil consumption from the 1990 level of approximately 40 percent of 

total energy use to 35 percent by the year 2005. 

(b) ADDITIONAL CONTENTS- The least-cost energy strategy shall also include-- 

(1) a comprehensive inventory of available energy and energy efficiency resources and their 

projected costs, taking into account all costs of production, transportation, distribution, and 

utilization of such resources, including-- 

(A) coal, clean coal technologies, coal seam methane, and underground coal gasification; 

(B) energy efficiency, including existing technologies for increased efficiency in production, 

transportation, distribution, and utilization of energy, and other technologies that are 

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anticipated to be available through further research and development; and 

(C) other energy resources, such as renewable energy, solar energy, nuclear fission, fusion, 

geothermal, biomass, fuel cells, hydropower, and natural gas; 

(2) a proposed two-year program for ensuring adequate supplies of the energy and energy 

efficiency resources and technologies described in paragraph (1), and an identification of 

administrative actions that can be undertaken within existing Federal authority to ensure their 

adequate supply; 

(3) estimates of life-cycle costs for existing energy production facilities; 

(4) basecase forecasts of short-term and long-term national energy needs under low and high case 

assumptions of economic growth; and 

(5) an identification of all applicable Federal authorities needed to achieve the purposes of this 

section, and of any inadequacies in those authorities. 

(c) SECRETARIAL CONSIDERATION- In developing the least-cost energy strategy, the Secretary 

shall give full consideration to-- 

(1) the relative costs of each energy and energy efficiency resource based upon a comparison of all 

direct and quantifiable net costs for the resource over its available life, including the cost of 

production, transportation, distribution, utilization, waste management, environmental compliance, 

and, in the case of imported energy resources, maintaining access to foreign sources of supply; and

(2) the economic, energy, social, environmental, and competitive consequences resulting from the 

establishment of any particular order of Federal priority as determined under subsection (d). 

(d) PRIORITIES- The least-cost energy strategy shall identify Federal priorities, including policies that--

(1) implement standards for more efficient use of fossil fuels; 

(2) increase the energy efficiency of existing technologies; 

(3) encourage technologies, including clean coal technologies, that generate lower levels of 

greenhouse gases; 

(4) promote the use of renewable energy resources, including solar, geothermal, sustainable 

biomass, hydropower, and wind power; 

(5) affect the development and consumption of energy and energy efficiency resources and 

electricity through tax policy; 

(6) encourage investment in energy efficient equipment and technologies; and 

(7) encourage the development of energy technologies, such as advanced nuclear fission and 

nuclear fusion, that produce energy without greenhouse gases as a byproduct, and encourage the 

deployment of nuclear electric generating capacity.

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(e) ASSUMPTIONS- The Secretary shall include in the least-cost energy strategy an identification of all 

of the assumptions used in developing the strategy and priorities thereunder, and the reasons for such 

assumptions. 

(f) PREFERENCE- When comparing an energy efficiency resource to an energy resource, a higher 

priority shall be assigned to the energy efficiency resource whenever all direct and quantifiable net costs 

for the resource over its available life are equal to the estimated cost of the energy resource. 

(g) PUBLIC REVIEW AND COMMENT- The Secretary shall provide for a period of public review and 

comment of the least-cost energy strategy, for a period of at least 30 days, to be completed at least 60 

days before the issuance of such strategy. The Secretary shall also provide for public review and 

comment before the issuance of any update to the least-cost energy strategy required under this section. 

SEC. 1603. DIRECTOR OF CLIMATE PROTECTION. 

Within 6 months after the date of the enactment of this Act, the Secretary shall establish, within the 

Department of Energy, a Director of Climate Protection (in this section referred to as the `Director'). The 

Director shall-- 

(1) in the absence of the Secretary, serve as the Secretary's representative for interagency and 

multilateral policy discussions of global climate change, including the activities of the Committee 

on Earth and Environmental Sciences as established by the Global Change Research Act of 1990 

(Public Law 101-606) and the Policy Coordinating Committee Working Group on Climate 

Change; 

(2) monitor, in cooperation with other Federal agencies, domestic and international policies for 

their effects on the generation of greenhouse gases; and 

(3) have the authority to participate in the planning activities of relevant Department of Energy 

programs. 

SEC. 1604. ASSESSMENT OF ALTERNATIVE POLICY MECHANISMS FOR ADDRESSING 

GREENHOUSE GAS EMISSIONS. 

Not later than 18 months after the date of the enactment of this Act, the Secretary shall transmit a report 

to Congress containing a comparative assessment of alternative policy mechanisms for reducing the 

generation of greenhouse gases. Such assessment shall include a short-run and long-run analysis of the 

social, economic, energy, environmental, competitive, and agricultural costs and benefits, including costs 

and benefits for jobs and competition, and the practicality of each of the following policy mechanisms: 

(1) Various systems for controlling the generation of greenhouse gases, including caps for the 

generation of greenhouse gases from major sources and emissions trading programs. 

(2) Federal standards for energy efficiency for major sources of greenhouse gases, including 

efficiency standards for power plants, industrial processes, automobile fuel economy, appliances, 

and buildings, and for emissions of methane. 

(3) Various Federal and voluntary incentives programs. 

SEC. 1605. NATIONAL INVENTORY AND VOLUNTARY REPORTING OF GREENHOUSE GASES. 

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(a) NATIONAL INVENTORY- Not later than one year after the date of the enactment of this Act, the 

Secretary, through the Energy Information Administration, shall develop, based on data available to, and 

obtained by, the Energy Information Administration, an inventory of the national aggregate emissions of 

each greenhouse gas for each calendar year of the baseline period of 1987 through 1990. The 

Administrator of the Energy Information Administration shall annually update and analyze such 

inventory using available data. This subsection does not provide any new data collection authority. 

(b) VOLUNTARY REPORTING- 

(1) ISSUANCE OF GUIDELINES- Not later than 18 months after the date of the enactment of 

this Act, the Secretary shall, after opportunity for public comment, issue guidelines for the 

voluntary collection and reporting of information on sources of greenhouse gases. Such guidelines 

shall establish procedures for the accurate voluntary reporting of information on-- 

(A) greenhouse gas emissions-- 

(i) for the baseline period of 1987 through 1990; and 

(ii) for subsequent calendar years on an annual basis; 

(B) annual reductions of greenhouse gas emissions and carbon fixation achieved through 

any measures, including fuel switching, forest management practices, tree planting, use of 

renewable energy, manufacture or use of vehicles with reduced greenhouse gas emissions, 

appliance efficiency, energy efficiency, methane recovery, cogeneration, chlorofluorocarbon 

capture and replacement, and power plant heat rate improvement; 

(C) reductions in greenhouse gas emissions achieved as a result of-- 

(i) voluntary reductions; 

(ii) plant or facility closings; and 

(iii) State or Federal requirements; and 

(D) an aggregate calculation of greenhouse gas emissions by each reporting entity. 

Such guidelines shall also establish procedures for taking into account the differential radiative 

activity and atmospheric lifetimes of each greenhouse gas. 

(2) REPORTING PROCEDURES- The Administrator of the Energy Information Administration 

shall develop forms for voluntary reporting under the guidelines established under paragraph (1), 

and shall make such forms available to entities wishing to report such information. Persons 

reporting under this subsection shall certify the accuracy of the information reported. 

(3) CONFIDENTIALITY- Trade secret and commercial or financial information that is privileged 

or confidential shall be protected as provided in section 552(b)(4) of title 5, United States Code. 

(4) ESTABLISHMENT OF DATA BASE- Not later than 18 months after the date of the 

enactment of this Act, the Secretary, through the Administrator of the Energy Information 

Administration, shall establish a data base comprised of information voluntarily reported under 

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this subsection. Such information may be used by the reporting entity to demonstrate achieved 

reductions of greenhouse gases. 

(c) CONSULTATION- In carrying out this section, the Secretary shall consult, as appropriate, with the 

Administrator of the Environmental Protection Agency. 

SEC. 1606. REPEAL. 

Title III of the Energy Security Act (42 U.S.C. 7361 et seq.) is hereby repealed. 

SEC. 1607. CONFORMING AMENDMENT. 

The Secretary, through the Trade Promotion Coordinating Council, shall develop policies and programs 

to encourage the export and promotion of domestic energy resource technologies, including renewable 

energy, energy efficiency, and clean coal technologies, to developing countries. 

SEC. 1608. INNOVATIVE ENVIRONMENTAL TECHNOLOGY TRANSFER PROGRAM. 

(a) ESTABLISHMENT OF PROGRAM- The Secretary, through the Agency for International 

Development, and in consultation with the interagency working group established under section 256(d) 

of the Energy Policy and Conservation Act (in this section referred to as the `interagency working 

group', shall establish a technology transfer program to carry out the purposes described in subsection 

(b). Within 150 days after the date of the enactment of this Act, the Secretary and the Administrator of 

the Agency for International Development shall enter into a written agreement to carry out this section. 

The agreement shall establish a procedure for resolving any disputes between the Secretary and the 

Administrator regarding the implementation of specific projects. With respect to countries not assisted 

by the Agency for International Development, the Secretary may enter into agreements with other 

appropriate Federal agencies. If the Secretary and the Administrator, or the Secretary and an agency 

described in the previous sentence, are unable to reach an agreement, each shall send a memorandum to 

the President outlining an appropriate agreement. Within 90 days after receipt of either memorandum, 

the President shall determine which version of the agreement shall be in effect. Any agreement entered 

into under this subsection shall be provided to the appropriate committees of the Congress and made 

available to the public. 

(b) PURPOSES OF THE PROGRAM- The purposes of the technology transfer program under this 

section are to-- 

(1) reduce the United States balance of trade deficit through the export of United States energy 

technologies and technological expertise; 

(2) retain and create manufacturing and related service jobs in the United States; 

(3) encourage the export of United States technologies, including services related thereto, to those 

countries that have a need for developmentally sound facilities to provide energy derived from 

technologies that substantially reduce environmental pollutants, including greenhouse gases; 

(4) develop markets for United States technologies, including services related thereto, that 

substantially reduce environmental pollutants, including greenhouse gases, that meet the energy 

and environmental requirements of foreign countries;

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(5) better ensure that United States participation in energy-related projects in foreign countries 

includes participation by United States firms as well as utilization of United States technologies; 

(6) ensure the introduction of United States firms and expertise in foreign countries; 

(7) provide financial assistance by the Federal Government to foster greater participation by 

United States firms in the financing, ownership, design, construction, or operation of technologies 

or services that substantially reduce environmental pollutants, including greenhouse gases; and 

(8) assist United States firms, especially firms that are in competition with firms in foreign 

countries, to obtain opportunities to transfer technologies to, or undertake projects in, foreign 

countries. 

(c) IDENTIFICATION- Pursuant to the agreements required by subsection (a), the Secretary, through 

the Agency for International Development, and after consultation with the interagency working group, 

United States firms, and representatives from foreign countries, shall develop mechanisms to identify 

potential energy projects in host countries that substantially reduce environmental pollutants, including 

greenhouse gases, and shall identify a list of such projects within 240 days after the date of the 

enactment of this Act, and periodically thereafter. 

(d) FINANCIAL MECHANISMS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall-- 

(A) establish appropriate financial mechanisms to increase the participation of United States firms 

in energy projects, and services related thereto, that substantially reduce environmental pollutants, 

including greenhouse gases in foreign countries; 

(B) utilize available financial assistance authorized by this section to counterbalance assistance 

provided by foreign governments to non-United States firms; and 

(C) provide financial assistance to support projects. 

(2) The financial assistance authorized by this section may be-- 

(A) provided in combination with other forms of financial assistance, including non-Federal 

funding that may be available for the project; and 

(B) utilized in conjunction with financial assistance programs available through other Federal 

agencies. 

(3) United States obligations under the Arrangement on Guidelines for Officially Supported Export 

Credits established through the Organization for Economic Cooperation and Development shall be 

applicable to this section. 

(e) SOLICITATIONS FOR PROJECT PROPOSALS- (1) Pursuant to the agreements under subsection 

(a), the Secretary, through the Agency for International Development, within one year after the date of 

the enactment of this Act, and subsequently as appropriate thereafter, shall solicit proposals from United 

States firms for the design, construction, testing, and operation of the project or projects identified under 

subsection (c) which propose to utilize a United States technology or service. Each solicitation under this 

section shall establish a closing date for receipt of proposals.

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(2) The solicitation under this subsection shall, to the extent appropriate, be modeled after the RFP No. 

DE-PS01-90FE62271 Clean Coal Technology IV, as administered by the Department of Energy. 

(3) Any solicitation made under this subsection shall include the following requirements: 

(A) The United States firm that submits a proposal in response to the solicitation shall have an 

equity interest in the proposed project. 

(B) The project shall utilize a United States technology, including services related thereto, that 

substantially reduce environmental pollutants, including greenhouse gases, in meeting the 

applicable energy and environmental requirements of the host country. 

(C) Proposals for projects shall be submitted by and undertaken with a United States firm, 

although a joint venture or other teaming arrangement with a non-United States manufacturer or 

other non-United States entity is permissible. 

(f) ASSISTANCE TO UNITED STATES FIRMS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the interagency 

working group, shall establish a procedure to provide financial assistance to United States firms under 

this section for a project identified under subsection (c) where solicitations for the project are being 

conducted by the host country or by a multilateral lending institution. 

(g) OTHER PROGRAM REQUIREMENTS- Pursuant to the agreements under subsection (a), the 

Secretary, through the Agency for International Development, and in consultation with the interagency 

working group, shall-- 

(1) establish eligibility criteria for countries that will host projects; 

(2) periodically review the energy needs of such countries and export opportunities for United 

States firms for the development of projects in such countries; 

(3) consult with government officials in host countries and, as appropriate, with representatives of 

utilities or other entities in host countries, to determine interest in and support for potential 

projects; and 

(4) determine whether each project selected under this section is developmentally sound, as 

determined under the criteria developed by the Development Assistance Committee of the 

Organization for Economic Cooperation and Development. 

(h) ELIGIBLE TECHNOLOGIES- Not later than 6 months after the date of the enactment of this Act, 

the Secretary shall prepare a list of eligible technologies and services under this section. In preparing 

such a list, the Secretary shall consider fuel cell powerplants, aeroderivitive gas turbines and catalytic 

combustion technologies for aeroderivitive gas turbines, ocean thermal energy conversion technology, 

anaerobic digester and storage tanks, and other renewable energy and energy efficiency technologies. 

(i) SELECTION OF PROJECTS- (1) Pursuant to the agreements under subsection (a), the Secretary, 

through the Agency for International Development, shall, not later than 120 days after receipt of 

proposals in response to a solicitation under subsection (e), select one or more proposals under this 

section. 

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(2) In selecting a proposal under this section, the Secretary, through the Agency for International 

Development, shall consider-- 

(A) the ability of the United States firm, in cooperation with the host country, to undertake and 

complete the project; 

(B) the degree to which the equipment to be included in the project is designed and manufactured 

in the United States; 

(C) the long-term technical and competitive viability of the United States technology, and services 

related thereto, and the ability of the United States firm to compete in the development of 

additional energy projects using such technology in the host country and in other foreign countries;

(D) the extent of technical and financial involvement of the host country in the project; 

(E) the extent to which the proposed project meets the purposes of this section; 

(F) the extent of technical, financial, management, and marketing capabilities of the participants in 

the project, and the commitment of the participants to completion of a successful project in a 

manner that will facilitate acceptance of the United States technology or service for future 

application; and 

(G) such other criteria as may be appropriate. 

(3) In selecting among proposed projects, the Secretary shall seek to ensure that, relative to otherwise 

comparable projects in the host country, a selected project will meet the following criteria: 

(A) It will reduce environmental emissions, including greenhouse gases, to an extent greater than 

required by applicable provisions of law. 

(B) It will be a more cost-effective technological alternative, based on life cycle capital and 

operating costs per unit of energy produced and, where applicable, costs per unit of product 

produced. 

(C) It will increase the overall efficiency of energy use. 

Priority in selection shall be given to those projects which, in the judgment of the Secretary, best meet 

these criteria. 

(j) UNITED STATES-ASIA ENVIRONMENTAL PARTNERSHIP- Activities carried out under this 

section shall be coordinated with the United States-Asia Environmental Partnership. 

(k) BUY AMERICA- In carrying out this section, the Secretary, through the Agency for International 

Development, and pursuant to the agreements under subsection (a), shall ensure-- 

(1) the maximum percentage, but in no case less than 50 percent, of the cost of any equipment 

furnished in connection with a project authorized under this section shall be attributable to the 

manufactured United States components of such equipment; and 

(2) the maximum participation of United States firms.

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In determining whether the cost of United States components equals or exceeds 50 percent, the cost of 

assembly of such United States components in the host country shall not be considered a part of the cost 

of such United States component. 

(l) REPORT TO CONGRESS- The Secretary and the Administrator of the Agency for International 

Development shall report annually to the Committee on Energy and Natural Resources of the Senate and 

the appropriate committees of the House of Representatives on the progress being made to introduce 

innovative energy technologies, and services related thereto, that substantially reduce environmental 

pollutants, including greenhouse gases, into foreign countries. 

(m) DEFINITIONS- For purposes of this section-- 

(1) the term `host country' means a foreign country which is-- 

(A) the participant in or the site of the proposed innovative energy technology project; and 

(B) either-- 

(i) classified as a country eligible to participate in development assistance programs of

the Agency for International Development pursuant to applicable law or regulation; or

(ii) a developing country; and 

(2) the term `developing country' includes, but is not limited to, countries in Central and Eastern 

Europe or in the independent states of the former Soviet Union. 

(n) AUTHORIZATION FOR PROGRAM- There are authorized to be appropriated to the Secretary to 

carry out the program required by this section, $100,000,000 for each of the fiscal years 1993, 1994, 

1995, 1996, 1997, and 1998. 

SEC. 1609. GLOBAL CLIMATE CHANGE RESPONSE FUND. 

(a) ESTABLISHMENT OF THE FUND- The Secretary of the Treasury, in consultation with the 

Secretary of State, shall establish a Global Climate Change Response Fund to act as a mechanism for 

United States contributions to assist global efforts in mitigating and adapting to global climate change. 

(b) RESTRICTIONS ON DEPOSITS- No deposits shall be made to the Global Climate Change 

Response Fund until the United States has ratified the United Nations Framework Convention on 

Climate Change. 

(c) USE OF THE FUND- Moneys deposited into the Fund shall be used by the President, to the extent 

authorized and appropriated under section 302 of the Foreign Assistance Act of 1961, solely for 

contributions to a financial mechanism negotiated pursuant to the United Nations Framework 

Convention on Climate Change, including all protocols or agreements related thereto. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated for deposit in 

the Fund to carry out the purposes of this section, $50,000,000 for fiscal year 1994 and such sums as 

may be necessary for fiscal years 1995 and 1996. 

TITLE XVII--ADDITIONAL FEDERAL POWER ACT PROVISIONS 

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SEC. 1701. ADDITIONAL FEDERAL POWER ACT PROVISIONS. 

(a) ANNUAL CHARGES FOR COSTS- (1) Section 10(e)(1) of the Federal Power Act is amended by 

striking the semicolon after `Part' and inserting the following: `, including any reasonable and necessary 

costs incurred by Federal and State fish and wildlife agencies and other natural and cultural resource 

agencies in connection with studies or other reviews carried out by such agencies for purposes of 

administering their responsibilities under this part;'. 

(2) Section 10(e)(1) of such Act is further amended by inserting after `as conditions may require:' the 

following proviso: `Provided, That, subject to annual appropriations Acts, the portion of such annual 

charges imposed by the Commission under this subsection to cover the reasonable and necessary costs of 

such agencies shall be available to such agencies (in addition to other funds appropriated for such 

purposes) solely for carrying out such studies and reviews and shall remain available until expended:'. 

(b) CLARIFICATION OF AUTHORITY REGARDING FISHWAYS- The definition of the term 

`fishway' contained in 18 C.F.R. 4.30(b)(9)(iii), as in effect on the date of enactment of this Act, is 

vacated without prejudice to any definition or interpretation by rule of the term `fishway' by the Federal 

Energy Regulatory Commission for purposes of implementing section 18 of the Federal Power Act: 

Provided, That any future definition promulgated by regulatory rulemaking shall have no force or effect 

unless concurred in by the Secretary of the Interior and the Secretary of Commerce: Provided further, 

That the items which may constitute a `fishway' under section 18 for the safe and timely upstream and 

downstream passage of fish shall be limited to physical structures, facilities, or devices necessary to 

maintain all life stages of such fish, and project operations and measures related to such structures, 

facilities, or devices which are necessary to ensure the effectiveness of such structures, facilities, or 

devices for such fish. 

(c) EXTENSION OF DEADLINES- (1) Notwithstanding the time limitations of section 13 of the 

Federal Power Act, the Federal Energy Regulatory Commission, upon the request of the licensee for 

FERC Project No. 4031 (and after reasonable notice), is authorized, in accordance with the good faith, 

due diligence, and public interest requirements of such section 13 and the Commission's procedures 

under such section, to extend the time required for commencement of construction of such project for up 

to a maximum of 3 consecutive 2-year periods. This section shall take effect for such project upon the 

expiration of the extension (issued by the Commission under such section 13) of the period required for 

commencement of construction of such project. 

(2) Notwithstanding the time limitations of section 13 of the Federal Power Act, the Federal Energy 

Regulatory Commission, upon the request of the licensee for FERC Project No. 6221 (and after 

reasonable notice), is authorized, in accordance with the good faith, due diligence, and public interest 

requirements of such section 13 and the Commission's procedures under such section, to extend the time 

required for commencement of construction of such project until July 29, 1995. 

(3) Notwithstanding the time limitations of section 13 of the Federal Power Act, the Federal Energy 

Regulatory Commission, upon the request of the licensee for FERC project numbered 6641 (and after 

reasonable notice) is authorized, in accordance with the good faith, due diligence, and public interest 

requirements of section 13 and the Commission's procedures under such section, to extend until June 29, 

1996, the time required for the licensee to acquire the required real property and commence the 

construction of project numbered 6641, and until June 29, 2000, the time required for completion of 

construction of such project. 

(4) Notwithstanding the time limitations of section 13 of the Federal Power Act, the Federal Energy

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Regulatory Commission, upon the request of the licensee of FERC project numbered 4656 (and after 

reasonable notice) is authorized, in accordance with the good faith, due diligence, and public interest 

requirements of section 13 and the Commission's procedures under such section, to extend until March 

26, 1999, the time required for the licensee to acquire the required real property and commence the 

construction of project numbered 4656. 

(5) The authorization for issuing extensions under paragraphs (1) through (4) shall terminate 3 years 

after the date of enactment of this section. To facilitate requests under such subsections, the Commission 

may consolidate the requests. The Commission shall provide at the beginning of each Congress a report 

on the status of all extensions granted by Congress regarding the requirements of section 13 of the 

Federal Power Act, including information about any delays by the Commission on the licensee and the 

reasons for such delays. 

(d) EMINENT DOMAIN- Section 21 of the Federal Power Act is amended by striking the period at the 

end thereof and adding the following: `Provided further, That no licensee may use the right of eminent 

domain under this section to acquire any lands or other property that, prior to the date of enactment of 

the Energy Policy Act of 1992, were owned by a State or political subdivision thereof and were part of or 

included within any public park, recreation area or wildlife refuge established under State or local law. In 

the case of lands or other property that are owned by a State or political subdivision and are part of or 

included within a public park, recreation area or wildlife refuge established under State or local law on or 

after the date of enactment of such Act, no licensee may use the right of eminent domain under this 

section to acquire such lands or property unless there has been a public hearing held in the affected 

community and a finding by the Commission, after due consideration of expressed public views and the 

recommendations of the State or political subdivision that owns the lands or property, that the license 

will not interfere or be inconsistent with the purposes for which such lands or property are owned.'. 

TITLE XVIII--OIL PIPELINE REGULATORY REFORM 

SEC. 1801. OIL PIPELINE RATEMAKING METHODOLOGY. 

(a) ESTABLISHMENT- Not later than 1 year after the date of the enactment of this Act, the Federal 

Energy Regulatory Commission shall issue a final rule which establishes a simplified and generally 

applicable ratemaking methodology for oil pipelines in accordance with section 1(5) of part I of the 

Interstate Commerce Act. 

(b) EFFECTIVE DATE- The final rule to be issued under subsection (a) may not take effect before the 

365th day following the date of the issuance of the rule. 

SEC. 1802. STREAMLINING OF COMMISSION PROCEDURES. 

(a) RULEMAKING- Not later than 18 months after the date of the enactment of this Act, the 

Commission shall issue a final rule to streamline procedures of the Commission relating to oil pipeline 

rates in order to avoid unnecessary regulatory costs and delays. 

(b) SCOPE OF RULEMAKING- Issues to be considered in the rulemaking proceeding to be conducted 

under subsection (a) shall include the following: 

(1) Identification of information to be filed with an oil pipeline tariff and the availability to the 

public of any analysis of such tariff filing performed by the Commission or its staff. 

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(2) Qualification for standing (including definitions of economic interest) of parties who protest oil 

pipeline tariff filings or file complaints thereto. 

(3) The level of specificity required for a protest or complaint and guidelines for Commission 

action on the portion of the tariff or rate filing subject to protest or complaint. 

(4) An opportunity for the oil pipeline to file a response for the record to an initial protest or 

complaint. 

(5) Identification of specific circumstances under which Commission staff may initiate a protest. 

(c) ADDITIONAL PROCEDURAL CHANGES- In conducting the rulemaking proceeding to carry out 

subsection (a), the Commission shall identify and transmit to Congress any other procedural changes 

relating to oil pipeline rates which the Commission determines are necessary to avoid unnecessary 

regulatory costs and delays and for which additional legislative authority may be necessary. 

(d) WITHDRAWAL OF TARIFFS AND COMPLAINTS- 

(1) WITHDRAWAL OF TARIFFS- If an oil pipeline tariff which is filed under part I of the 

Interstate Commerce Act and which is subject to investigation is withdrawn-- 

(A) any proceeding with respect to such tariff shall be terminated; 

(B) the previous tariff rate shall be reinstated; and 

(C) any amounts collected under the withdrawn tariff rate which are in excess of the 

previous tariff rate shall be refunded. 

(2) WITHDRAWAL OF COMPLAINTS- If a complaint which is filed under section 13 of the 

Interstate Commerce Act with respect to an oil pipeline tariff is withdrawn, any proceeding with 

respect to such complaint shall be terminated. 

(e) ALTERNATIVE DISPUTE RESOLUTION- To the maximum extent practicable, the Commission 

shall establish appropriate alternative dispute resolution procedures, including required negotiations and 

voluntary arbitration, early in an oil pipeline rate proceeding as a method preferable to adjudication in 

resolving disputes relating to the rate. Any proposed rates derived from implementation of such 

procedures shall be considered by the Commission on an expedited basis for approval. 

SEC. 1803. PROTECTION OF CERTAIN EXISTING RATES. 

(a) RATES DEEMED JUST AND REASONABLE- Except as provided in subsection (b)-- 

(1) any rate in effect for the 365-day period ending on the date of the enactment of this Act shall 

be deemed to be just and reasonable (within the meaning of section 1(5) of the Interstate 

Commerce Act); and 

(2) any rate in effect on the 365th day preceding the date of such enactment shall be deemed to be 

just and reasonable (within the meaning of such section 1(5)) regardless of whether or not, with 

respect to such rate, a new rate has been filed with the Commission during such 365-day period;

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if the rate in effect, as described in paragraph (1) or (2), has not been subject to protest, investigation, or 

complaint during such 365-day period. 

(b) CHANGED CIRCUMSTANCES- No person may file a complaint under section 13 of the Interstate 

Commerce Act against a rate deemed to be just and reasonable under subsection (a) unless-- 

(1) evidence is presented to the Commission which establishes that a substantial change has 

occurred after the date of the enactment of this Act-- 

(A) in the economic circumstances of the oil pipeline which were a basis for the rate; or 

(B) in the nature of the services provided which were a basis for the rate; or 

(2) the person filing the complaint was under a contractual prohibition against the filing of a 

complaint which was in effect on the date of enactment of this Act and had been in effect prior to 

January 1, 1991, provided that a complaint by a party bound by such prohibition is brought within 

30 days after the expiration of such prohibition. 

If the Commission determines pursuant to a proceeding instituted as a result of a complaint under section 

13 of the Interstate Commerce Act that the rate is not just and reasonable, the rate shall not be deemed to 

be just and reasonable. Any tariff reduction or refunds that may result as an outcome of such a complaint 

shall be prospective from the date of the filing of the complaint. 

(c) LIMITATION REGARDING UNDULY DISCRIMINATORY OR PREFERENTIAL TARIFFSNothing in this section shall prohibit any aggrieved person from filing a complaint under section 13 or 

section 15(l) of the Interstate Commerce Act challenging any tariff provision as unduly discriminatory or 

unduly preferential. 

SEC. 1804. DEFINITIONS. 

For the purposes of this title, the following definitions apply: 

(1) COMMISSION- The term `Commission' means the Federal Energy Regulatory Commission 

and, unless the context requires otherwise, includes the Oil Pipeline Board and any other office or 

component of the Commission to which the functions and authority vested in the Commission 

under section 402(b) of the Department of Energy Organization Act (42 U.S.C. 7172(b)) are 

delegated. 

(2) OIL PIPELINE- 

(A) IN GENERAL- Except as provided in subparagraph (B), the term `oil pipeline' means 

any common carrier (within the meaning of the Interstate Commerce Act) which transports 

oil by pipeline subject to the functions and authority vested in the Commission under section 

402(b) of the Department of Energy Organization Act (42 U.S.C. 7172(b)). 

(B) EXCEPTION- The term `oil pipeline' does not include the Trans-Alaska Pipeline 

authorized by the Trans-Alaska Pipeline Authorization Act (43 U.S.C. 1651 et seq.) or any 

pipeline delivering oil directly or indirectly to the Trans-Alaska Pipeline. 

(3) OIL- The term `oil' has the same meaning as is given such term for purposes of the transfer of 

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functions from the Interstate Commerce Commission to the Federal Energy Regulatory 

Commission under section 402(b) of the Department of Energy Organization Act (42 U.S.C. 7172

(b)). 

(4) RATE- The term `rate' means all charges that an oil pipeline requires shippers to pay for 

transportation services. 

TITLE XIX--REVENUE PROVISIONS 

SEC. 1901. AMENDMENT OF 1986 CODE. 

Except as otherwise expressly provided, whenever in this title an amendment or repeal is expressed in 

terms of an amendment to, or repeal of, a section or other provision, the reference shall be considered to 

be made to a section or other provision of the Internal Revenue Code of 1986. 

Subtitle A--Energy Conservation and Production Incentives 

SEC. 1911. TREATMENT OF EMPLOYER-PROVIDED TRANSPORTATION BENEFITS. 

(a) EXCLUSION- Subsection (a) of section 132 (relating to exclusion of certain fringe benefits) is 

amended by striking `or' at the end of paragraph (3), by striking the period at the end of paragraph (4) 

and inserting `, or', and by adding at the end thereof the following new paragraph: 

`(5) qualified transportation fringe.' 

(b) QUALIFIED TRANSPORTATION FRINGE- Section 132 is amended by redesignating subsections 

(f), (g), (h), (i), (j), and (k) as subsections (g), (h), (i), (j), (k), and (l), respectively, and by inserting after 

subsection (e) the following new subsection: 

`(f) QUALIFIED TRANSPORTATION FRINGE- 

`(1) IN GENERAL- For purposes of this section, the term `qualified transportation fringe' means 

any of the following provided by an employer to an employee: 

`(A) Transportation in a commuter highway vehicle if such transportation is in connection 

with travel between the employee's residence and place of employment. 

`(B) Any transit pass. 

`(C) Qualified parking. 

`(2) LIMITATION ON EXCLUSION- The amount of the fringe benefits which are provided by an 

employer to any employee and which may be excluded from gross income under subsection (a)(5) 

shall not exceed-- 

`(A) $60 per month in the case of the aggregate of the benefits described in subparagraphs 

(A) and (B) of paragraph (1), and 

`(B) $155 per month in the case of qualified parking.

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`(3) CASH REIMBURSEMENTS- For purposes of this subsection, the term `qualified 

transportation fringe' includes a cash reimbursement by an employer to an employee for a benefit 

described in paragraph (1). The preceding sentence shall apply to a cash reimbursement for any 

transit pass only if a voucher or similar item which may be exchanged only for a transit pass is not 

readily available for direct distribution by the employer to the employee. 

`(4) BENEFIT NOT IN LIEU OF COMPENSATION- Subsection (a)(5) shall not apply to any 

qualified transportation fringe unless such benefit is provided in addition to (and not in lieu of) any 

compensation otherwise payable to the employee. 

`(5) DEFINITIONS- For purposes of this subsection-- 

`(A) TRANSIT PASS- The term `transit pass' means any pass, token, farecard, voucher, or 

similar item entitling a person to transportation (or transportation at a reduced price) if such 

transportation is-- 

`(i) on mass transit facilities (whether or not publicly owned), or 

`(ii) provided by any person in the business of transporting persons for compensation 

or hire if such transportation is provided in a vehicle meeting the requirements of 

subparagraph (B)(i). 

`(B) COMMUTER HIGHWAY VEHICLE- The term `commuter highway vehicle' means 

any highway vehicle-- 

`(i) the seating capacity of which is at least 6 adults (not including the driver), and 

`(ii) at least 80 percent of the mileage use of which can reasonably be expected to be--

`(I) for purposes of transporting employees in connection with travel between 

their residences and their place of employment, and 

`(II) on trips during which the number of employees transported for such 

purposes is at least 1/2 of the adult seating capacity of such vehicle (not 

including the driver). 

`(C) QUALIFIED PARKING- The term `qualified parking' means parking provided to an 

employee on or near the business premises of the employer or on or near a location from 

which the employee commutes to work by transportation described in subparagraph (A), in a 

commuter highway vehicle, or by carpool. Such term shall not include any parking on or 

near property used by the employee for residential purposes. 

`(D) TRANSPORTATION PROVIDED BY EMPLOYER- Transportation referred to in 

paragraph (1)(A) shall be considered to be provided by an employer if such transportation is 

furnished in a commuter highway vehicle operated by or for the employer. 

`(E) EMPLOYEE- For purposes of this subsection, the term `employee' does not include an 

individual who is an employee within the meaning of section 401(c)(1). 

`(6) INFLATION ADJUSTMENT- In the case of any taxable year beginning in a calendar year 

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after 1993, the dollar amounts contained in paragraph (2) (A) and (B) shall be increased by an 

amount equal to-- 

`(A) such dollar amount, multiplied by 

`(B) the cost-of-living adjustment determined under section 1(f)(3) for the calendar year in 

which the taxable year begins, determined by substituting `calendar year 1992' for `calendar 

year 1989' in subparagraph (B) thereof. 

If any increase determined under the preceding sentence is not a multiple of $5, such increase shall 

be rounded to the next lowest multiple of $5. 

`(7) COORDINATION WITH OTHER PROVISIONS- For purposes of this section, the terms 

`working condition fringe' and `de minimis fringe' shall not include any qualified transportation 

fringe (determined without regard to paragraph (2)).' 

(c) CONFORMING AMENDMENT- Subsection (i) of section 132 (as redesignated by subsection (b)) is 

amended by striking paragraph (4) and redesignating the following paragraphs accordingly. 

(d) EFFECTIVE DATE- The amendments made by this section shall apply to benefits provided after 

December 31, 1992. 

SEC. 1912. EXCLUSION OF ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC 

UTILITIES. 

(a) GENERAL RULE- Part III of subchapter B of chapter 1 (relating to amounts specifically excluded 

from gross income) is amended by redesignating section 136 as section 137 and by inserting after section 

135 the following new section: 

`SEC. 136. ENERGY CONSERVATION SUBSIDIES PROVIDED BY PUBLIC UTILITIES. 

`(a) EXCLUSION- 

`(1) IN GENERAL- Gross income shall not include the value of any subsidy provided (directly or 

indirectly) by a public utility to a customer for the purchase or installation of any energy 

conservation measure. 

`(2) LIMITATION ON EXCLUSION FOR NONRESIDENTIAL PROPERTY- 

`(A) IN GENERAL- In the case of any subsidy provided with respect to any energy 

conservation measure referred to in subsection (c)(1)(B), only the applicable percentage of 

such subsidy shall be excluded from gross income under paragraph (1). 

`(B) APPLICABLE PERCENTAGE- For purposes of subparagraph (A), the term 

`applicable percentage' means-- 

`(i) 40 percent in the case of subsidies provided during 1995, 

`(ii) 50 percent in the case of subsidies provided during 1996, and

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`(iii) 65 percent in the case of subsidies provided after 1996. 

`(b) DENIAL OF DOUBLE BENEFIT- Notwithstanding any other provision of this subtitle, no 

deduction or credit shall be allowed for, or by reason of, any expenditure to the extent of the amount 

excluded under subsection (a) for any subsidy which was provided with respect to such expenditure. The 

adjusted basis of any property shall be reduced by the amount excluded under subsection (a) which was 

provided with respect to such property. 

`(c) ENERGY CONSERVATION MEASURE- 

`(1) IN GENERAL- For purposes of this section, the term `energy conservation measure' means 

any installation or modification primarily designed to reduce consumption of electricity or natural 

gas or to improve the management of energy demand-- 

`(A) with respect to a dwelling unit, and 

`(B) on or after January 1, 1995, with respect to property other than dwelling units. 

The purchase and installation of specially defined energy property shall be treated as an energy 

conservation measure described in subparagraph (B). 

`(2) OTHER DEFINITIONS AND SPECIAL RULES- For purposes of this subsection-- 

`(A) SPECIALLY DEFINED ENERGY PROPERTY- The term `specially defined energy 

property' means-- 

`(i) a recuperator, 

`(ii) a heat wheel, 

`(iii) a regenerator, 

`(iv) a heat exchanger, 

`(v) a waste heat boiler, 

`(vi) a heat pipe, 

`(vii) an automatic energy control system, 

`(viii) a turbulator, 

`(ix) a preheater, 

`(x) a combustible gas recovery system, 

`(xi) an economizer, 

`(xii) modifications to alumina electrolytic cells,

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`(xiii) modifications to chlor-alkali electrolytic cells, or 

`(xiv) any other property of a kind specified by the Secretary by regulations, 

the principal purpose of which is reducing the amount of energy consumed in any 

existing industrial or commercial process and which is installed in connection with an 

existing industrial or commercial facility. 

`(B) DWELLING UNIT- The term `dwelling unit' has the meaning given such term by 

section 280A(f)(1). 

`(C) PUBLIC UTILITY- The term `public utility' means a person engaged in the sale of 

electricity or natural gas to residential, commercial, or industrial customers for use by such 

customers. For purposes of the preceding sentence, the term `person' includes the Federal 

Government, a State or local government or any political subdivision thereof, or any 

instrumentality of any of the foregoing. 

`(d) EXCEPTION- This section shall not apply to any payment to or from a qualified cogeneration 

facility or qualifying small power production facility pursuant to section 210 of the Public Utility 

Regulatory Policy Act of 1978.' 

(b) CLERICAL AMENDMENT- The table of sections for part III of subchapter B of chapter 1 is 

amended by striking the item relating to section 136 and inserting: 

`Sec. 136. Energy conservation subsidies provided by public utilities. 

`Sec. 137. Cross reference to other Acts.' 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to amounts received after 

December 31, 1992. 

SEC. 1913. TREATMENT OF CLEAN-FUEL VEHICLES. 

(a) DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN REFUELING PROPERTY- 

(1) IN GENERAL- Part VI of subchapter B of chapter 1 (relating to itemized deductions for 

individuals and corporations) is amended by adding after section 179 the following new section: 

`SEC. 179A. DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN REFUELING 

PROPERTY. 

`(a) ALLOWANCE OF DEDUCTION- 

`(1) IN GENERAL- There shall be allowed as a deduction an amount equal to the cost of-- 

`(A) any qualified clean-fuel vehicle property, and 

`(B) any qualified clean-fuel vehicle refueling property. 

The deduction under the preceding sentence with respect to any property shall be allowed for the 

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taxable year in which such property is placed in service. 

`(2) INCREMENTAL COST FOR CERTAIN VEHICLES- If a vehicle may be propelled by both 

a clean-burning fuel and any other fuel, only the incremental cost of permitting the use of the 

clean-burning fuel shall be taken into account. 

`(b) LIMITATIONS- 

`(1) QUALIFIED CLEAN-FUEL VEHICLE PROPERTY- 

`(A) IN GENERAL- The cost which may be taken into account under subsection (a)(1)(A) 

with respect to any motor vehicle shall not exceed-- 

`(i) in the case of a motor vehicle not described in clause (ii) or (iii), $2,000, 

`(ii) in the case of any truck or van with a gross vehicle weight rating greater than 

10,000 pounds but not greater than 26,000 pounds, $5,000, or 

`(iii) $50,000 in the case of-- 

`(I) a truck or van with a gross vehicle weight rating greater than 26,000 

pounds, or 

`(II) any bus which has a seating capacity of at least 20 adults (not including the 

driver). 

`(B) PHASEOUT- In the case of any qualified clean-fuel vehicle property placed in service 

after December 31, 2001, the limit otherwise applicable under subparagraph (A) shall be 

reduced by-- 

`(i) 25 percent in the case of property placed in service in calendar year 2002, 

`(ii) 50 percent in the case of property placed in service in calendar year 2003, and 

`(iii) 75 percent in the case of property placed in service in calendar year 2004. 

`(2) QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROPERTY- 

`(A) IN GENERAL- The aggregate cost which may be taken into account under subsection 

(a)(1)(B) with respect to qualified clean-fuel vehicle refueling property placed in service 

during the taxable year at a location shall not exceed the excess (if any) of-- 

`(i) $100,000, over 

`(ii) the aggregate amount taken into account under subsection (a)(1)(B) by the 

taxpayer (or any related person or predecessor) with respect to property placed in 

service at such location for all preceding taxable years. 

`(B) RELATED PERSON- For purposes of this paragraph, a person shall be treated as 

related to another person if such person bears a relationship to such other person described 

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in section 267(b) or 707(b)(1). 

`(C) ELECTION- If the limitation under subparagraph (A) applies for any taxable year, the 

taxpayer shall, on the return of tax for such taxable year, specify the items of property (and 

the portion of costs of such property) which are to be taken into account under subsection (a)

(1)(B). 

`(c) QUALIFIED CLEAN-FUEL VEHICLE PROPERTY DEFINED- For purposes of this section-- 

`(1) IN GENERAL- The term `qualified clean-fuel vehicle property' means property which is 

acquired for use by the taxpayer and not for resale, the original use of which commences with the 

taxpayer, with respect to which the environmental standards of paragraph (2) are met, and which is 

described in either of the following subparagraphs: 

`(A) RETROFIT PARTS AND COMPONENTS- Any property installed on a motor vehicle 

which is propelled by a fuel which is not a clean-burning fuel for purposes of permitting 

such vehicle to be propelled by a clean-burning fuel-- 

`(i) if the property is an engine (or modification thereof) which may use a cleanburning fuel, or 

`(ii) to the extent the property is used in the storage or delivery to the engine of such 

fuel, or the exhaust of gases from combustion of such fuel. 

`(B) ORIGINAL EQUIPMENT MANUFACTURER'S VEHICLES- A motor vehicle 

produced by an original equipment manufacturer and designed so that the vehicle may be 

propelled by a clean-burning fuel, but only to the extent of the portion of the basis of such 

vehicle which is attributable to an engine which may use such fuel, to the storage or delivery 

to the engine of such fuel, or to the exhaust of gases from combustion of such fuel. 

`(2) ENVIRONMENTAL STANDARDS- Property shall not be treated as qualified clean-fuel 

vehicle property unless-- 

`(A) the motor vehicle of which it is a part meets any applicable Federal or State emissions 

standards with respect to each fuel by which such vehicle is designed to be propelled, or 

`(B) in the case of property described in paragraph (1)(A), such property meets applicable 

Federal and State emissions-related certification, testing, and warranty requirements. 

`(3) EXCEPTION FOR QUALIFIED ELECTRIC VEHICLES- The term `qualified clean-fuel 

vehicle property' does not include any qualified electric vehicle (as defined in section 30(c)). 

`(d) QUALIFIED CLEAN-FUEL VEHICLE REFUELING PROPERTY DEFINED- For purposes of 

this section, the term `qualified clean-fuel vehicle refueling property' means any property (not including 

a building and its structural components) if-- 

`(1) such property is of a character subject to the allowance for depreciation, 

`(2) the original use of such property begins with the taxpayer, and

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`(3) such property is-- 

`(A) for the storage or dispensing of a clean-burning fuel into the fuel tank of a motor 

vehicle propelled by such fuel, but only if the storage or dispensing of the fuel is at the point 

where such fuel is delivered into the fuel tank of the motor vehicle, or 

`(B) for the recharging of motor vehicles propelled by electricity, but only if the property is 

located at the point where the motor vehicles are recharged. 

`(e) OTHER DEFINITIONS AND SPECIAL RULES- For purposes of this section-- 

`(1) CLEAN-BURNING FUEL- The term `clean-burning fuel' means-- 

`(A) natural gas, 

`(B) liquefied natural gas, 

`(C) liquefied petroleum gas, 

`(D) hydrogen, 

`(E) electricity, and 

`(F) any other fuel at least 85 percent of which is 1 or more of the following: methanol, 

ethanol, any other alcohol, or ether. 

`(2) MOTOR VEHICLE- The term `motor vehicle' means any vehicle which is manufactured 

primarily for use on public streets, roads, and highways (not including a vehicle operated 

exclusively on a rail or rails) and which has at least 4 wheels. 

`(3) COST OF RETROFIT PARTS INCLUDES COST OF INSTALLATION- The cost of any 

qualified clean-fuel vehicle property referred to in subsection (c)(1)(A) shall include the cost of the 

original installation of such property. 

`(4) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any 

deduction allowable under subsection (a) with respect to any property which ceases to be property 

eligible for such deduction. 

`(5) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No deduction 

shall be allowed under subsection (a) with respect to any property referred to in section 50(b) or 

with respect to the portion of the cost of any property taken into account under section 179. 

`(6) BASIS REDUCTION- 

`(A) IN GENERAL- For purposes of this title, the basis of any property shall be reduced by 

the portion of the cost of such property taken into account under subsection (a). 

`(B) ORDINARY INCOME RECAPTURE- For purposes of section 1245, the amount of 

the deduction allowable under subsection (a) with respect to any property which is of a 

character subject to the allowance for depreciation shall be treated as a deduction allowed 

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for depreciation under section 167. 

`(g) TERMINATION- This section shall not apply to any property placed in service after December 31, 

2004.' 

(2) DEDUCTION FROM GROSS INCOME- Section 62(a) is amended by inserting after 

paragraph (13) the following new paragraph: 

`(14) DEDUCTION FOR CLEAN-FUEL VEHICLES AND CERTAIN REFUELING 

PROPERTY- The deduction allowed by section 179A.' 

(3) CONFORMING AMENDMENTS- 

(A) Section 1016(a) is amended by striking `and' at the end of paragraph (23), by striking 

the period at the end of paragraph (24) and inserting `, and', and by adding at the end thereof 

the following new paragraph: 

`(25) to the extent provided in section 179A(e)(6)(A).' 

(B) The table of sections for part VI of subchapter B of chapter 1 is amended by inserting 

after the item relating to section 179 the following new item: 

`Sec. 179A. Deduction for clean-fuel vehicles and certain refueling property.' 

(b) CREDIT FOR QUALIFIED ELECTRIC VEHICLES- 

(1) IN GENERAL- Subpart B of part IV of subchapter A of chapter 1 is amended by inserting 

after section 29 the following new section: 

`SEC. 30. CREDIT FOR QUALIFIED ELECTRIC VEHICLES. 

`(a) ALLOWANCE OF CREDIT- There shall be allowed as a credit against the tax imposed by this 

chapter for the taxable year an amount equal to 10 percent of the cost of any qualified electric vehicle 

placed in service by the taxpayer during the taxable year. 

`(b) LIMITATIONS- 

`(1) LIMITATION PER VEHICLE- The amount of the credit allowed under subsection (a) for any 

vehicle shall not exceed $4,000. 

`(2) PHASEOUT- In the case of any qualified electric vehicle placed in service after December 31, 

2001, the credit otherwise allowable under subsection (a) (determined after the application of 

paragraph (1)) shall be reduced by-- 

`(A) 25 percent in the case of property placed in service in calendar year 2002, 

`(B) 50 percent in the case of property placed in service in calendar year 2003, and 

`(C) 75 percent in the case of property placed in service in calendar year 2004. 

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`(3) APPLICATION WITH OTHER CREDITS- The credit allowed by subsection (a) for any 

taxable year shall not exceed the excess (if any) of-- 

`(A) the regular tax for the taxable year reduced by the sum of the credits allowable under 

subpart A and sections 27, 28, and 29, over-- 

`(B) the tentative minimum tax for the taxable year. 

`(c) QUALIFIED ELECTRIC VEHICLE- For purposes of this section-- 

`(1) IN GENERAL- The term `qualified electric vehicle' means any motor vehicle-- 

`(A) which is powered primarily by an electric motor drawing current from rechargeable 

batteries, fuel cells, or other portable sources of electrical current, 

`(B) the original use of which commences with the taxpayer, and 

`(C) which is acquired for use by the taxpayer and not for resale. 

`(2) MOTOR VEHICLE- For purposes of paragraph (1), the term `motor vehicle' means any 

vehicle which is manufactured primarily for use on public streets, roads, and highways (not 

including a vehicle operated exclusively on a rail or rails) and which has at least 4 wheels. 

`(d) SPECIAL RULES- 

`(1) BASIS REDUCTION- The basis of any property for which a credit is allowable under 

subsection (a) shall be reduced by the amount of such credit. 

`(2) RECAPTURE- The Secretary shall, by regulations, provide for recapturing the benefit of any 

credit allowable under subsection (a) with respect to any property which ceases to be property 

eligible for such credit. 

`(3) PROPERTY USED OUTSIDE UNITED STATES, ETC., NOT QUALIFIED- No credit shall 

be allowed under subsection (a) with respect to any property referred to in section 50(b) or with 

respect to the portion of the cost of any property taken into account under section 179. 

`(e) TERMINATION- This section shall not apply to any property placed in service after December 31, 

2004.' 

(2) CONFORMING AMENDMENTS- 

(A) The table of sections for subpart B of part IV of subchapter A of chapter 1 is amended 

by adding after the item relating to section 29 the following new item: 

`Sec. 30. Credit for qualified electric vehicles.' 

(B) Section 1016(a), as amended by subsection (a)(3), is amended by striking `and' at the 

end of paragraph (24), by striking the period at the end of paragraph (25) and inserting `, 

and', and by adding at the end thereof the following new paragraph: 

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`(26) to the extent provided in section 30(d)(1).' 

(C) Section 53(d)(1)(B)(iii) is amended-- 

(i) by striking `section 29(b)(5)(B) or' and inserting `section 29(b)(6)(B),', and 

(ii) by inserting `, or not allowed under section 30 solely by reason of the application 

of section 30(b)(3)(B)' before the period. 

(D) Section 55(c)(2) is amended by striking `29(b)(5),' and inserting `29(b)(6), 30(b)(3),'. 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to property placed in service 

after June 30, 1993. 

SEC. 1914. CREDIT FOR ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE SOURCES. 

(a) IN GENERAL- Subpart D of part IV of subchapter A of chapter 1 is amended by adding at the end 

thereof the following new section: 

`SEC. 45. ELECTRICITY PRODUCED FROM CERTAIN RENEWABLE RESOURCES. 

`(a) GENERAL RULE- For purposes of section 38, the renewable electricity production credit for any 

taxable year is an amount equal to the product of-- 

`(1) 1.5 cents, multiplied by 

`(2) the kilowatt hours of electricity-- 

`(A) produced by the taxpayer-- 

`(i) from qualified energy resources, and 

`(ii) at a qualified facility during the 10-year period beginning on the date the facility 

was originally placed in service, and 

`(B) sold by the taxpayer to an unrelated person during the taxable year. 

`(b) LIMITATIONS AND ADJUSTMENTS- 

`(1) PHASEOUT OF CREDIT- The amount of the credit determined under subsection (a) shall be 

reduced by an amount which bears the same ratio to the amount of the credit (determined without 

regard to this paragraph) as-- 

`(A) the amount by which the reference price for the calendar year in which the sale occurs 

exceeds 8 cents, bears to 

`(B) 3 cents. 

`(2) CREDIT AND PHASEOUT ADJUSTMENT BASED ON INFLATION- The 1.5 cent amount 

in subsection (a) and the 8 cent amount in paragraph (1) shall each be adjusted by multiplying such 

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amount by the inflation adjustment factor for the calendar year in which the sale occurs. If any 

amount as increased under the preceding sentence is not a multiple of 0.1 cent, such amount shall 

be rounded to the nearest multiple of 0.1 cent. 

`(3) CREDIT REDUCED FOR GRANTS, TAX-EXEMPT BONDS, SUBSIDIZED ENERGY 

FINANCING, AND OTHER CREDITS- The amount of the credit determined under subsection 

(a) with respect to any project for any taxable year (determined after the application of paragraphs 

(1) and (2)) shall be reduced by the amount which is the product of the amount so determined for 

such year and a fraction-- 

`(A) the numerator of which is the sum, for the taxable year and all prior taxable years, of-- 

`(i) grants provided by the United States, a State, or a political subdivision of a State 

for use in connection with the project, 

`(ii) proceeds of an issue of State or local government obligations used to provide 

financing for the project the interest on which is exempt from tax under section 103, 

`(iii) the aggregate amount of subsidized energy financing provided (directly or 

indirectly) under a Federal, State, or local program provided in connection with the 

project, and 

`(iv) the amount of any other credit allowable with respect to any property which is 

part of the project, and 

`(B) the denominator of which is the aggregate amount of additions to the capital account 

for the project for the taxable year and all prior taxable years. 

The amounts under the preceding sentence for any taxable year shall be determined as of the close 

of the taxable year. 

`(c) DEFINITIONS- For purposes of this section-- 

`(1) QUALIFIED ENERGY RESOURCES- The term `qualified energy resources' means-- 

`(A) wind, and 

`(B) closed-loop biomass. 

`(2) CLOSED-LOOP BIOMASS- The term `closed-loop biomass' means any organic material 

from a plant which is planted exclusively for purposes of being used at a qualified facility to 

produce electricity. 

`(3) QUALIFIED FACILITY- The term `qualified facility' means any facility owned by the 

taxpayer which is originally placed in service after December 31, 1993 (December 31, 1992, in the 

case of a facility using closed-loop biomass to produce electricity), and before July 1, 1999. 

`(d) DEFINITIONS AND SPECIAL RULES- For purposes of this section-- 

`(1) ONLY PRODUCTION IN THE UNITED STATES TAKEN INTO ACCOUNT- Sales shall 

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be taken into account under this section only with respect to electricity the production of which is 

within-- 

`(A) the United States (within the meaning of section 638(1)), or 

`(B) a possession of the United States (within the meaning of section 638(2)). 

`(2) COMPUTATION OF INFLATION ADJUSTMENT FACTOR AND REFERENCE PRICE- 

`(A) IN GENERAL- The Secretary shall, not later than April 1 of each calendar year, 

determine and publish in the Federal Register the inflation adjustment factor and the 

reference price for such calendar year in accordance with this paragraph. 

`(B) INFLATION ADJUSTMENT FACTOR- The term `inflation adjustment factor' means, 

with respect to a calendar year, a fraction the numerator of which is the GDP implicit price 

deflator for the preceding calendar year and the denominator of which is the GDP implicit 

price deflator for the calendar year 1992. The term `GDP implicit price deflator' means the 

most recent revision of the implicit price deflator for the gross domestic product as 

computed and published by the Department of Commerce before March 15 of the calendar 

year. 

`(C) REFERENCE PRICE- The term `reference price' means, with respect to a calendar 

year, the Secretary's determination of the annual average contract price per kilowatt hour of 

electricity generated from the same qualified energy resource and sold in the previous year 

in the United States. For purposes of the preceding sentence, only contracts entered into 

after December 31, 1989, shall be taken into account. 

`(3) PRODUCTION ATTRIBUTABLE TO THE TAXPAYER- In the case of a facility in which 

more than 1 person has an ownership interest, except to the extent provided in regulations 

prescribed by the Secretary, production from the facility shall be allocated among such persons in 

proportion to their respective ownership interests in the gross sales from such facility. 

`(4) RELATED PERSONS- Persons shall be treated as related to each other if such persons would 

be treated as a single employer under the regulations prescribed under section 52(b). In the case of 

a corporation which is a member of an affiliated group of corporations filing a consolidated return, 

such corporation shall be treated as selling electricity to an unrelated person if such electricity is 

sold to such a person by another member of such group. 

`(5) PASS-THRU IN THE CASE OF ESTATES AND TRUSTS- Under regulations prescribed by 

the Secretary, rules similar to the rules of subsection (d) of section 52 shall apply.' 

(b) CREDIT TO BE PART OF GENERAL BUSINESS CREDIT- Subsection (b) of section 38 is 

amended by striking `plus' at the end of paragraph (6), by striking the period at the end of paragraph (7) 

and inserting `, plus', and by adding at the end thereof the following new paragraph: 

`(8) the renewable electricity production credit under section 45(a).' 

(c) LIMITATION ON CARRYBACK- Subsection (d) of section 39 is amended by redesignating the 

paragraph added by section 11511(b)(2) of the Revenue Reconciliation Act of 1990 as paragraph (1), by 

redesignating the paragraph added by section 11611(b)(2) of such Act as paragraph (2), and by adding at 

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the end thereof the following new paragraph: 

`(3) NO CARRYBACK OF RENEWABLE ELECTRICITY PRODUCTION CREDIT BEFORE 

EFFECTIVE DATE- No portion of the unused business credit for any taxable year which is 

attributable to the credit determined under section 45 (relating to electricity produced from certain 

renewable resources) may be carried back to any taxable year ending before January 1, 1993 

(before January 1, 1994, to the extent such credit is attributable to wind as a qualified energy 

resource).' 

(d) CLERICAL AMENDMENT- The table of sections for subpart D of part IV of subchapter A of 

chapter 1 is amended by adding at the end thereof the following new item: 

`Sec. 45. Electricity produced from certain renewable resources.' 

(e) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years ending after 

December 31, 1992. 

SEC. 1915. REPEAL OF MINIMUM TAX PREFERENCES FOR DEPLETION AND INTANGIBLE 

DRILLING COSTS OF INDEPENDENT OIL AND GAS PRODUCERS AND ROYALTY OWNERS. 

(a) DEPLETION- 

(1) Paragraph (1) of section 57(a) (relating to depletion) is amended by adding at the end thereof 

the following new sentence: `Effective with respect to taxable years beginning after December 31, 

1992, this paragraph shall not apply to any deduction for depletion computed in accordance with 

section 613A(c).'. 

(2) Subparagraph (F) of section 56(g)(4) is amended to read as follows: 

`(F) DEPLETION- 

`(i) IN GENERAL- The allowance for depletion with respect to any property placed 

in service in a taxable year beginning after December 31, 1989, shall be cost depletion 

determined under section 611. 

`(ii) EXCEPTION FOR INDEPENDENT OIL AND GAS PRODUCERS AND 

ROYALTY OWNERS- In the case of any taxable year beginning after December 31, 

1992, clause (i) (and subparagraph (C)(i)) shall not apply to any deduction for 

depletion computed in accordance with section 613A(c).' 

(b) INTANGIBLE DRILLING COSTS- 

(1) Section 57(a)(2) is amended by adding at the end the following new subparagraph: 

`(E) EXCEPTION FOR INDEPENDENT PRODUCERS- In the case of any oil or gas well-

- 

`(i) IN GENERAL- In the case of any taxable year beginning after December 31, 

1992, this paragraph shall not apply to any taxpayer which is not an integrated oil 

company (as defined in section 291(b)(4)).

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`(ii) LIMITATION ON BENEFIT- The reduction in alternative minimum taxable 

income by reason of clause (i) for any taxable year shall not exceed 40 percent (30 

percent in case of taxable years beginning in 1993) of the alternative minimum 

taxable income for such year determined without regard to clause (i) and the 

alternative tax net operating loss deduction under section 56(a)(4).' 

(2) Clause (i) of section 56(g)(4)(D) is amended by adding at the end thereof the following new 

sentence: `In the case of a taxpayer other than an integrated oil company (as defined in section 291

(b)(4)), in the case of any oil or gas well, this clause shall not apply in the case of amounts paid or 

incurred in taxable years beginning after December 31, 1992.'. 

(c) CONFORMING AMENDMENTS- 

(1) Section 56 is amended by striking subsection (h). 

(2) Section 56(d)(1)(A) is amended to read as follows: 

`(A) the amount of such deduction shall not exceed 90 percent of alternate minimum taxable 

income determined without regard to such deduction, and'. 

(3) Section 59(a)(2)(A)(ii) is amended by striking `and the alternative tax energy preference 

deduction under section 56(h)' and inserting `and section 57(a)(2)(E)'. 

(4) Section 59A(b)(1) is amended by striking `or the alternative tax energy preference deduction 

under section 56(h)'. 

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning 

after December 31, 1992. 

SEC. 1916. PERMANENT EXTENSION OF ENERGY INVESTMENT CREDIT FOR SOLAR AND 

GEOTHERMAL PROPERTY. 

(a) GENERAL RULE- Paragraph (2) of section 48(a) (defining energy percentage) is amended-- 

(1) by striking `Except as provided in subparagraph (B), the' in subparagraph (A) and inserting 

`The', 

(2) by striking subparagraph (B), and 

(3) by redesignating subparagraph (C) as subparagraph (B). 

(b) EFFECTIVE DATE- The amendments made by this section shall take effect on June 30, 1992. 

SEC. 1917. NUCLEAR DECOMMISSIONING FUNDS. 

(a) REPEAL OF INVESTMENT RESTRICTIONS- Subparagraph (C) of section 468A(e)(4) (relating to 

special rules for nuclear decommissioning funds) is amended by striking `described in section 501(c)(21)

(B)(ii)'. 

(b) REDUCTION IN RATE OF TAX- Paragraph (2) of section 468A(e) is amended-- 

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(1) by striking `at the rate equal to the highest rate of tax specified in section 11(b)' in 

subparagraph (A) and inserting `at the rate set forth in subparagraph (B)', and 

(2) by redesignating subparagraphs (B) and (C) as subparagraphs (C) and (D), respectively, and by 

inserting after subparagraph (A) the following new subparagraph: 

`(B) RATE OF TAX- For purposes of subparagraph (A), the rate set forth in this 

subparagraph is-- 

`(i) 22 percent in the case of taxable years beginning in calendar year 1994 or 1995, 

and 

`(ii) 20 percent in the case of taxable years beginning after December 31, 1995.' 

(c) EFFECTIVE DATES- 

(1) SUBSECTION (a)- The amendment made by subsection (a) shall apply to taxable years 

beginning after December 31, 1992. 

(2) SUBSECTION (b)- The amendments made by subsection (b) shall apply to taxable years 

beginning after December 31, 1993. Section 15 of the Internal Revenue Code of 1986 shall not 

apply to any change in rate resulting from the amendment made by subsection (b). 

SEC. 1918. EXTENSION OF SECTION 29 CREDIT FOR CERTAIN FACILITIES. 

Section 29 (relating to credit for producing fuel from a nonconventional source) is amended by adding at 

the end thereof the following new subsection: 

`(g) EXTENSION FOR CERTAIN FACILITIES- 

`(1) IN GENERAL- In the case of a facility for producing qualified fuels described in 

subparagraph (B)(ii) or (C) of subsection (c)(1)-- 

`(A) for purposes of subsection (f)(1)(B), such facility shall be treated as being placed in 

service before January 1, 1993, if such facility is placed in service before January 1, 1997, 

pursuant to a binding written contract in effect before January 1, 1996, and 

`(B) if such facility is originally placed in service after December 31, 1992, paragraph (2) of 

subsection (f) shall be applied with respect to such facility by substituting `January 1, 2008' 

for `January 1, 2003'. 

`(2) SPECIAL RULE- Paragraph (1) shall not apply to any facility which produces coke or coke 

gas unless the original use of the facility commences with the taxpayer.' 

SEC. 1919. TREATMENT UNDER LOCAL FURNISHING RULES OF CERTAIN ELECTRICITY 

TRANSMITTED OUTSIDE LOCAL AREA. 

(a) IN GENERAL- Subsection (f) of section 142 (relating to local furnishing of electric energy or gas) is 

amended to read as follows: 

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`(f) LOCAL FURNISHING OF ELECTRIC ENERGY OR GAS- For purposes of subsection (a)(8)-- 

`(1) IN GENERAL- The local furnishing of electric energy or gas from a facility shall only include 

furnishing solely within the area consisting of-- 

`(A) a city and 1 contiguous county, or 

`(B) 2 contiguous counties. 

`(2) TREATMENT OF CERTAIN ELECTRIC ENERGY TRANSMITTED OUTSIDE LOCAL 

AREA- 

`(A) IN GENERAL- A facility shall not be treated as failing to meet the local furnishing 

requirement of subsection (a)(8) by reason of electricity transmitted pursuant to an order of 

the Federal Energy Regulatory Commission under section 211 or 213 of the Federal Power 

Act (as in effect on the date of the enactment of this paragraph) if the portion of the cost of 

the facility financed with tax-exempt bonds is not greater than the portion of the cost of the 

facility which is allocable to the local furnishing of electric energy (determined without 

regard to this paragraph). 

`(B) SPECIAL RULE FOR EXISTING FACILITIES- In the case of a facility financed with 

bonds issued before the date of an order referred to in subparagraph (A) which would (but 

for this subparagraph) cease to be tax-exempt by reason of subparagraph (A), such bonds 

shall not cease to be tax-exempt bonds (and section 150(b)(4) shall not apply) if, to the 

extent necessary to comply with subparagraph (A)-- 

`(i) an escrow to pay principal of, premium (if any), and interest on the bonds is 

established within a reasonable period after the date such order becomes final, and 

`(ii) bonds are redeemed not later than the earliest date on which such bonds may be 

redeemed.' 

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to obligations issued 

before, on, or after the date of the enactment of this Act. 

SEC. 1920. ALCOHOL FUELS. 

(a) REDUCED RATE OF TAX ON GASOLINE MIXED WITH ALCOHOL- Paragraph (1) of section 

4081(c) (relating to gasoline mixed with alcohol at refinery, etc.) is amended to read as follows: 

`(1) IN GENERAL- Under regulations prescribed by the Secretary, subsection (a) shall be applied 

by multiplying the otherwise applicable rate by a fraction the numerator of which is 10 and the 

denominator of which is-- 

`(A) 9 in the case of 10 percent gasohol, 

`(B) 9.23 in the case of 7.7 percent gasohol, and 

`(C) 9.43 in the case of 5.7 percent gasohol,

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in the case of the removal or entry of any gasoline for use in producing gasohol at the time of such 

removal or entry. Subject to such terms and conditions as the Secretary may prescribe (including 

the application of section 4101), the treatment under the preceding sentence also shall apply to use 

in producing gasohol after the time of such removal or entry.' 

(b) CONFORMING AMENDMENTS- Section 4081(c) is amended-- 

(1) by striking `6.1 cents a gallon' in paragraph (2) and inserting `an otherwise applicable rate', and

(2) by striking paragraph (4) and inserting the following new paragraph: 

`(4) OTHERWISE APPLICABLE RATE- For purposes of this subsection-- 

`(A) IN GENERAL- In the case of the Highway Trust Fund financing rate, the term 

`otherwise applicable rate' means-- 

`(i) 6.1 cents a gallon for 10 percent gasohol, 

`(ii) 7.342 cents a gallon for 7.7 percent gasohol, and 

`(iii) 8.422 cents a gallon for 5.7 percent gasohol. 

In the case of gasohol none of the alcohol in which consists of ethanol, clauses (i), (ii), and 

(iii) shall be applied by substituting `5.5 cents' for `6.1 cents', `6.88 cents' for `7.342 cents', 

and `8.08 cents' for `8.422 cents'. 

`(B) 10 PERCENT GASOHOL- The term `10 percent gasohol' means any mixture of 

gasoline with alcohol if at least 10 percent of such mixture is alcohol. 

`(C) 7.7 PERCENT GASOHOL- The term `7.7 percent gasohol' means any mixture of 

gasoline with alcohol if at least 7.7 percent, but not 10 percent or more, of such mixture is 

alcohol. 

`(D) 5.7 PERCENT GASOHOL- The term `5.7 percent gasohol' means any mixture of 

gasoline with alcohol if at least 5.7 percent, but not 7.7 percent or more, of such mixture is 

alcohol.' 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to gasoline removed (as 

defined in section 4082 of the Internal Revenue Code of 1986) or entered after December 31, 1992. 

SEC. 1921. TAX-EXEMPT FINANCING FOR ENVIRONMENTAL ENHANCEMENTS OF 

HYDROELECTRIC GENERATING FACILITIES. 

(a) IN GENERAL- Subsection (a) of section 142 (relating to exempt facility bonds) is amended-- 

(1) by striking `or' at the end of paragraph (10), 

(2) by striking the period at the end of paragraph (11) and inserting `, or', and 

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

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`(12) environmental enhancements of hydroelectric generating facilities.' 

(b) DEFINITION AND SPECIAL RULES FOR ENVIRONMENTAL ENHANCEMENTS OF 

HYDROELECTRIC GENERATING FACILITIES- 

(1) IN GENERAL- Section 142 is amended by adding at the end the following new subsection: 

`(j) ENVIRONMENTAL ENHANCEMENTS OF HYDROELECTRIC GENERATING FACILITIES- 

`(1) IN GENERAL- For purposes of subsection (a)(12), the term `environmental enhancements of 

hydroelectric generating facilities' means property-- 

`(A) the use of which is related to a federally licensed hydroelectric generating facility 

owned and operated by a governmental unit, and 

`(B) which-- 

`(i) protects or promotes fisheries or other wildlife resources, including any fish bypass facility, fish hatchery, or fisheries enhancement facility, or 

`(ii) is a recreational facility or other improvement required by the terms and 

conditions of any Federal licensing permit for the operation of such generating 

facility. 

`(2) USE OF PROCEEDS- A bond issued as part of an issue described in subsection (a)(12) shall 

not be considered an exempt facility bond unless at least 80 percent of the net proceeds of the issue 

of which it is a part are used to finance property described in paragraph (1)(B)(i).' 

(2) FINANCED PROPERTY MUST BE GOVERNMENTALLY OWNED- Subparagraph (A) of 

section 142(b)(1) (relating to certain facilities must be governmentally owned) is amended by 

striking `(2) or (3)' and inserting `(2), (3), or (12)'. 

(3) EXCLUSION FROM VOLUME CAP- Paragraph (3) of section 146(g) (relating to exception 

for certain bonds) is amended-- 

(A) by striking `or (2)' and inserting `, (2), or (12)', and 

(B) by striking `and docks and wharves' and inserting `, docks and wharves, and 

environmental enhancements of hydroelectric generating facilities'. 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to bonds issued after the date 

of the enactment of this Act. 

SEC. 1922. TRANS-ALASKA PIPELINE LIABILITY FUND INCOME TAX CREDIT. 

(a) IN GENERAL- Section 4612 is amended by redesignating subsection (e) as subsection (f) and by 

inserting after subsection (d) the following new subsection: 

`(e) INCOME TAX CREDIT FOR UNUSED PAYMENTS INTO TRANS-ALASKA PIPELINE 

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`(1) IN GENERAL- For purposes of section 38, the current year business credit shall include the 

credit determined under this subsection. 

`(2) DETERMINATION OF CREDIT- 

`(A) IN GENERAL- The credit determined under this subsection for any taxable year is an 

amount equal to the aggregate credit which would be allowed to the taxpayer under 

subsection (d) for amounts paid into the Trans-Alaska Pipeline Liability Fund had the Oil 

Spill Liability Trust Fund financing rate not ceased to apply. 

`(B) LIMITATION- 

`(i) IN GENERAL- The amount of the credit determined under this subsection for any 

taxable year with respect to any taxpayer shall not exceed the excess of-- 

`(I) the amount determined under clause (ii), over 

`(II) the aggregate amount of the credit determined under this subsection for 

prior taxable years with respect to such taxpayer. 

`(ii) OVERALL LIMITATION- The amount determined under this clause with 

respect to any taxpayer is the excess of-- 

`(I) the aggregate amount of credit which would have been allowed under 

subsection (d) to the taxpayer for periods before the termination date specified 

in section 4611(f)(1), if amounts in the Trans-Alaska Pipeline Liability Fund 

which are actually transferred into the Oil Spill Liability Fund were tranferred 

on January 1, 1990, and the Oil Spill Liability Trust Fund financing rate did not 

terminate before such termination date, over 

`(II) the aggregate amount of the credit allowed under subsection (d) to the 

taxpayer. 

`(3) COST OF INCOME TAX CREDIT BORNE BY TRUST FUND- 

`(A) IN GENERAL- The Secretary shall from time to time transfer from the Oil Spill 

Liability Trust Fund to the general fund of the Treasury amounts equal to the credits allowed 

by reason of this subsection. 

`(B) TRUST FUND BALANCE MAY NOT BE REDUCED BELOW $1,000,000,000- 

Transfers may be made under subparagraph (A) only to the extent that the unobligated 

balance of the Oil Spill Liability Trust Fund exceeds $1,000,000,000. If any transfer is not 

made by reason of the preceding sentence, such transfer shall be made as soon as permitted 

under such sentence. 

`(4) NO CARRYBACK- No portion of the unused business credit for any taxable year which is 

attributable to the credit determined under this subsection may be carried to a taxable year 

beginning on or before the date of the enactment of this paragraph.'. 

(b) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning

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after the date of the enactment of this Act. 

Subtitle B--Revenue Increases, Etc. 

SEC. 1931. INCREASED BASE TAX AMOUNT ON OZONE-DEPLETING CHEMICALS. 

(a) IN GENERAL- Subparagraph (B) of section 4681(b)(1) (relating to amount of tax) is amended to 

read as follows: 

`(B) BASE TAX AMOUNT- The base tax amount for purposes of subparagraph (A) with 

respect to any sale or use during a calendar year before 1996 with respect to any ozonedepleting chemical is the amount determined under the following table for such calendar 

year: 

--Base tax 

`Calendar year: 

--amount: 

1993 

--3.35 

1994 

--4.35 

1995 

--5.35.' 

(b) RATES RETAINED FOR CHEMICALS USED IN RIGID FOAM INSULATION- The table in 

subparagraph (B) of section 4682(g)(2) (relating to chemicals used in rigid foam insulation) is amended 

by striking `10' and inserting `7.46'. 

(c) FLOOR STOCKS- Subparagraph (C) of section 4682(h)(2) (relating to tax-increase dates) is 

amended by striking `of 1991, 1992, 1993, and 1994' and inserting `of any calendar year after 1991'. 

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable chemicals sold or 

used on or after January 1, 1993. 

SEC. 1932. TREATMENT OF CERTAIN OZONE DEPLETING CHEMICALS. 

(a) TREATMENT OF CERTAIN HALONS- The table contained in subparagraph (A) of section 4682

(g)(2) (relating to halons) is amended to read as follows: 

--The applicable percentage 

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--in the case of sales or use 

`In the case of: 

--during 1993 is: 

Halon-1211 

--2.49 

Halon-1301 

--0.75 

Halon-2402 

--1.24.' 

(b) CHEMICALS USED FOR STERILIZING MEDICAL INSTRUMENTS AND AS PROPELLANTS 

IN METERED-DOSE INHALERS- Subsection (g) of section 4682 (relating to phase-in of tax on certain 

substances) is amended by adding at the end thereof the following new paragraph: 

`(4) CHEMICALS USED FOR STERILIZING MEDICAL INSTRUMENTS AND AS 

PROPELLANTS IN METERED-DOSE INHALERS- 

`(A) RATE OF TAX- 

`(i) IN GENERAL- In the case of-- 

`(I) any use during the applicable period of any substance to sterilize medical 

instruments or as propellants in metered-dose inhalers, or 

`(II) any qualified sale during such period by the manufacturer, producer, or 

importer of any substance, 

the tax imposed by section 4681 shall be equal to $1.67 per pound. 

`(ii) QUALIFIED SALE- For purposes of clause (i), the term `qualified sale' means 

any sale by the manufacturer, producer, or importer of any substance-- 

`(I) for use by the purchaser to sterilize medical instruments or as propellants in 

metered-dose inhalers, or 

`(II) for resale by the purchaser to a 2d purchaser for such use by the 2d 

purchaser. 

The preceding sentence shall apply only if the manufacturer, producer, and importer, 

and the 1st and 2d purchasers (if any) meet such registration requirements as may be 

prescribed by the Secretary.

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`(B) OVERPAYMENTS- If any substance on which tax was paid under this subchapter is 

used during the applicable period by any person to sterilize medical instruments or as 

propellants in metered-dose inhalers, credit or refund without interest shall be allowed to 

such person in an amount equal to the excess of-- 

`(i) the tax paid under this subchapter on such substance, or 

`(ii) the tax (if any) which would be imposed by section 4681 if such substance were 

used for such use by the manufacture, producer, or importer thereof on the date of its 

use by such person. 

Amounts payable under the preceding sentence with respect to uses during the taxable year 

shall be treated as described in section 34(a) for such year unless claim thereof has been 

timely filed under this subparagraph. 

`(C) APPLICABLE PERIOD- For purposes of this paragraph, the term `applicable period' 

means-- 

`(i) 1993 in the case of substances to sterilize medical instruments, and 

`(ii) any period after 1992 in the case of propellants in metered-dose inhalers.' 

(c) TREATMENT OF METHYL CHLOROFORM- Subsection (g) of section 4682, as amended by 

subsection (b), is amended by adding at the end thereof the following new paragraph: 

`(5) TREATMENT OF METHYL CHLOROFORM- The tax imposed by section 4681 during 

1993 by reason of the treatment of methyl chloroform as an ozone-depleting chemical shall be 

63.02 percent of the amount of such tax which would (but for this paragraph) be imposed.' 

(d) EFFECTIVE DATE- The amendments made by this section shall apply to sales and uses on or after 

January 1, 1993. 

SEC. 1933. INFORMATION REPORTING WITH RESPECT TO CERTAIN SELLER-PROVIDED 

FINANCING. 

(a) GENERAL RULE- Section 6109 (relating to identifying numbers) is amended by adding at the end 

thereof the following new subsection: 

`(h) IDENTIFYING INFORMATION REQUIRED WITH RESPECT TO CERTAIN SELLERPROVIDED FINANCING- 

`(1) PAYOR- If any taxpayer claims a deduction under section 163 for qualified residence interest 

on any seller-provided financing, such taxpayer shall include on the return claiming such 

deduction the name, address, and TIN of the person to whom such interest is paid or accrued. 

`(2) RECIPIENT- If any person receives or accrues interest referred to in paragraph (1), such 

person shall include on the return for the taxable year in which such interest is so received or 

accrued the name, address, and TIN of the person liable for such interest. 

`(3) FURNISHING OF INFORMATION BETWEEN PAYOR AND RECIPIENT- If any person 

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is required to include the TIN of another person on a return under paragraph (1) or (2), such other 

person shall furnish his TIN to such person. 

`(4) SELLER-PROVIDED FINANCING- For purposes of this subsection, the term `sellerprovided financing' means any indebtedness incurred in acquiring any residence if the person to 

whom such indebtedness is owed is the person from whom such residence was acquired.'. 

(b) PENALTY- Paragraph (3) of section 6724(d) (relating to specified information reporting 

requirement) is amended by striking `and' at the end of subparagraph (C), by striking the period at the 

end of subparagraph (D) and inserting `, and', and by adding at the end thereof the following new 

subparagraph: 

`(E) any requirement under section 6109(f) that-- 

`(i) a person include on his return the name, address, and TIN of another person, or 

`(ii) a person furnish his TIN to another person.' 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning 

after December 31, 1991. 

SEC. 1934. INCREASED WITHHOLDING ON GAMBLING WINNINGS. 

(a) IN GENERAL- Section 3402(q)(1) (relating to extension of withholding to certain gambling 

winnings) is amended by striking `20 percent' and inserting `28 percent'. 

(b) EFFECTIVE DATE- The amendment made by this section applies to payments received after 

December 31, 1992. 

SEC. 1935. INCREASE IN BACKUP WITHHOLDING RATE. 

(a) IN GENERAL- Section 3406(a)(1) is amended by striking `20 percent' and inserting `31 percent'. 

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to amounts paid after 

December 31, 1992. 

SEC. 1936. CLASSIFICATION OF CERTAIN INTEREST AS STOCK OR INDEBTEDNESS. 

(a) GENERAL RULE- Section 385 (relating to treatment of certain interests in corporations as stock or 

indebtedness) is amended by adding at the end thereof the following new subsection: 

`(c) EFFECT OF CLASSIFICATION BY ISSUER- 

`(1) IN GENERAL- The characterization (as of the time of issuance) by the issuer as to whether an 

interest in a corporation is stock or indebtedness shall be binding on such issuer and on all holders 

of such interest (but shall not be binding on the Secretary). 

`(2) NOTIFICATION OF INCONSISTENT TREATMENT- Except as provided in regulations, 

paragraph (1) shall not apply to any holder of an interest if such holder on his return discloses that 

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he is treating such interest in a manner inconsistent with the characterization referred to in 

paragraph (1). 

`(3) REGULATIONS- The Secretary is authorized to require such information as the Secretary 

determines to be necessary to carry out the provisions of this subsection.' 

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to instruments issued after 

the date of the enactment of this Act. 

SEC. 1937. RECOGNITION OF PRECONTRIBUTION GAIN IN CASE OF CERTAIN DISTRIBUTIONS 

TO CONTRIBUTING PARTNER. 

(a) GENERAL RULE- Subpart C of part II of subchapter K of chapter 1 (relating to distributions by a 

partnership) is amended by adding at the end thereof the following new section: 

`SEC. 737. RECOGNITION OF PRECONTRIBUTION GAIN IN CASE OF CERTAIN DISTRIBUTIONS 

TO CONTRIBUTING PARTNER. 

`(a) GENERAL RULE- In the case of any distribution by a partnership to a partner, such partner shall be 

treated as recognizing gain in an amount equal to the lesser of-- 

`(1) the excess (if any) of (A) the fair market value of property (other than money) received in the 

distribution over (B) the adjusted basis of such partner's interest in the partnership immediately 

before the distribution reduced (but not below zero) by the amount of money received in the 

distribution, or 

`(2) the net precontribution gain of the partner. 

Gain recognized under the preceding sentence shall be in addition to any gain recognized under section 

731. The character of such gain shall be determined by reference to the proportionate character of the net 

precontribution gain. 

`(b) NET PRECONTRIBUTION GAIN- For purposes of this section, the term `net precontribution gain' 

means the net gain (if any) which would have been recognized by the distributee partner under section 

704(c)(1)(B) if all property which-- 

`(1) had been contributed to the partnership by the distributee partner within 5 years of the 

distribution, and 

`(2) is held by such partnership immediately before the distribution, 

had been distributed by such partnership to another partner. 

`(c) BASIS RULES- 

`(1) PARTNER'S INTEREST- The adjusted basis of a partner's interest in a partnership shall be 

increased by the amount of any gain recognized by such partner under subsection (a). Except for 

purposes of determining the amount recognized under subsection (a), such increase shall be treated 

as occurring immediately before the distribution.

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`(2) PARTNERSHIP'S BASIS IN CONTRIBUTED PROPERTY- Appropriate adjustments shall 

be made to the adjusted basis of the partnership in the contributed property referred to in 

subsection (b) to reflect gain recognized under subsection (a). 

`(d) EXCEPTIONS- 

`(1) DISTRIBUTIONS OF PREVIOUSLY CONTRIBUTED PROPERTY- If any portion of the 

property distributed consists of property which had been contributed by the distributee partner to 

the partnership, such property shall not be taken into account under subsection (a)(1) and shall not 

be taken into account in determining the amount of the net precontribution gain. If the property 

distributed consists of an interest in an entity, the preceding sentence shall not apply to the extent 

that the value of such interest is attributable to property contributed to such entity after such 

interest had been contributed to the partnership. 

`(2) COORDINATION WITH SECTION 751- This section shall not apply to the extent section 

751(b) applies to such distribution.' 

(b) TECHNICAL AMENDMENTS- 

(1) Subparagraph (B) of section 704(c)(1) is amended by striking out `is distributed' in the material 

preceding clause (i) and inserting `is distributed (directly or indirectly)'. 

(2) Subsection (c) of section 731 is amended-- 

(A) by striking `and section 751' and inserting `, section 751', and 

(B) by inserting before the period at the end thereof the following: `, and section 737 

(relating to recognition of precontribution gain in case of certain distributions)'. 

(3) The table of sections for subpart B of part II of subchapter K of chapter 1 is amended by 

adding at the end thereof the following new item: 

`Sec. 737. Recognition of precontribution gain in case of certain distributions to contributing partner.' 

(c) EFFECTIVE DATE- The amendments made by this section shall apply to distributions on or after 

June 25, 1992. 

SEC. 1938. DEDUCTION FOR EXPENSES AWAY FROM HOME. 

(a) IN GENERAL- Section 162(a) is amended by adding at the end the following new sentence: `For 

purposes of paragraph (2), the taxpayer shall not be treated as being temporarily away from home during 

any period of employment if such period exceeds 1 year.' 

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to costs paid or incurred 

after December 31, 1992. 

SEC. 1939. REPORTING REQUIREMENTS WITH RESPECT TO CERTAIN APPORTIONED REAL 

ESTATE TAXES. 

(a) GENERAL RULE- Paragraph (4) of section 6045(e) is amended to read as follows: 

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`(4) ADDITIONAL INFORMATION REQUIRED- In the case of a real estate transaction 

involving a residence, the real estate reporting person shall include the following information on 

the return under subsection (a) and on the statement under subsection (b): 

`(A) The portion of any real property tax which is treated as a tax imposed on the purchaser 

by reason of section 164(d)(1)(B). 

`(B) Whether or not the financing (if any) of the seller was federally-subsidized 

indebtedness (as defined in section 143(m)(3)).' 

(b) EFFECTIVE DATE- The amendment made by subsection (a) shall apply to transactions after 

December 31, 1992. 

SEC. 1940. USE OF EXCESS ASSETS OF BLACK LUNG BENEFIT TRUSTS FOR HEALTH CARE 

BENEFITS. 

(a) GENERAL RULE- Paragraph (21) of section 501(c) is amended to read as follows: 

`(21)(A) A trust or trusts established in writing, created or organized in the United States, and 

contributed to by any person (except an insurance company) if-- 

`(i) the purpose of such trust or trusts is exclusively-- 

`(I) to satisfy, in whole or in part, the liability of such person for, or with respect to, 

claims for compensation for disability or death due to pneumoconiosis under Black 

Lung Acts, 

`(II) to pay premiums for insurance exclusively covering such liability, 

`(III) to pay administrative and other incidental expenses of such trust in connection 

with the operation of the trust and the processing of claims against such person under 

Black Lung Acts, and 

`(IV) to pay accident or health benefits for retired miners and their spouses and 

dependents (including administrative and other incidental expenses of such trust in 

connection therewith) or premiums for insurance exclusively covering such benefits; 

and 

`(ii) no part of the assets of the trust may be used for, or diverted to, any purpose other than-

- 

`(I) the purposes described in clause (i), 

`(II) investment (but only to the extent that the trustee determines that a portion of the 

assets is not currently needed for the purposes described in clause (i)) in qualified 

investments, or 

`(III) payment into the Black Lung Disability Trust Fund established under section 

9501, or into the general fund of the United States Treasury (other than in satisfaction 

of any tax or other civil or criminal liability of the person who established or 

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contributed to the trust). 

`(B) No deduction shall be allowed under this chapter for any payment described in subparagraph 

(A)(i)(IV) from such trust. 

`(C) Payments described in subparagraph (A)(i)(IV) may be made from such trust during a taxable 

year only to the extent that the aggregate amount of such payments during such taxable year does 

not exceed the lesser of-- 

`(i) the excess (if any) (as of the close of the preceding taxable year) of-- 

`(I) the fair market value of the assets of the trust, over 

`(II) 110 percent of the present value of the liability described in subparagraph (A)(i)

(I) of such person, or 

`(ii) the excess (if any) of-- 

`(I) the sum of a similar excess determined as of the close of the last taxable year 

ending before the date of the enactment of this subparagraph plus earnings thereon as 

of the close of the taxable year preceding the taxable year involved, over 

`(II) the aggregate payments described in subparagraph (A)(i)(IV) made from the trust 

during all taxable years beginning after the date of the enactment of this subparagraph.

The determinations under the preceding sentence shall be made by an independent actuary using 

actuarial methods and assumptions (not inconsistent with the regulations prescribed under section 

192(c)(1)(A)) each of which is reasonable and which are reasonable in the aggregate. 

`(D) For purposes of this paragraph: 

`(i) The term `Black Lung Acts' means part C of title IV of the Federal Mine Safety and 

Health Act of 1977, and any State law providing compensation for disability or death due to 

that pneumoconiosis. 

`(ii) The term `qualified investments' means-- 

`(I) public debt securities of the United States, 

`(II) obligations of a State or local government which are not in default as to principal 

or interest, and 

`(III) time or demand deposits in a bank (as defined in section 581) or an insured 

credit union (within the meaning of section 101(6) of the Federal Credit Union Act, 

12 U.S.C. 1752(6)) located in the United States. 

`(iii) The term `miner' has the same meaning as such term has when used in section 402(d) 

of the Black Lung Benefits Act (30 U.S.C. 902(d)). 

`(iv) The term `incidental expenses' includes legal, accounting, actuarial, and trustee 

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expenses.' 

(b) EXCEPTION FROM TAX ON SELF-DEALING- Section 4951(f) is amended by striking `clause (i) 

of section 501(c)(21)(A)' and inserting `subclause (I) or (IV) of section 501(c)(21)(A)(i)'. 

(c) TECHNICAL AMENDMENT- Paragraph (4) of section 192(c) is amended by striking `clause (ii) of 

section 501(c)(21)(B)' and inserting `subclause (II) of section 501(c)(21)(A)(ii)'. 

(d) EFFECTIVE DATE- The amendments made by this section shall apply to taxable years beginning 

after December 31, 1991. 

SEC. 1941. TREATMENT OF PORTIONS OF PROPERTY UNDER MARITAL DEDUCTION. 

(a) ESTATE TAX- Subsection (b) of section 2056 (relating to limitation in case of life estate or other 

terminable interest) is amended by adding at the end thereof the following new paragraph: 

`(10) SPECIFIC PORTION- For purposes of paragraphs (5), (6), and (7)(B)(iv), the term `specific 

portion' only includes a portion determined on a fractional or percentage basis.' 

(b) GIFT TAX- 

(1) Subsection (e) of section 2523 is amended by adding at the end thereof the following new 

sentence: `For purposes of this subsection, the term `specific portion' only includes a portion 

determined on a fractional or percentage basis.' 

(2) Paragraph (3) of section 2523(f) is amended by inserting before the period at the end thereof 

the following: `and the rules of section 2056(b)(10) shall apply'. 

(c) EFFECTIVE DATES- 

(1) SUBSECTION (a)- 

(A) IN GENERAL- Except as provided in subparagraph (B), the amendment made by 

subsection (a) shall apply to the estates of decedents dying after the date of the enactment of 

this Act. 

(B) EXCEPTION- The amendment made by subsection (a) shall not apply to any interest in 

property which passes (or has passed) to the surviving spouse of the decedent pursuant to a 

will (or revocable trust) in existence on the date of the enactment of this Act if-- 

(i) the decedent dies on or before the date 3 years after such date of enactment, or 

(ii) the decedent was, on such date of enactment, under a mental disability to change 

the disposition of his property and did not regain his competence to dispose of such 

property before the date of his death. 

The preceding sentence shall not apply if such will (or revocable trust) is amended at any 

time after such date of enactment in any respect which will increase the amount of the 

interest which so passes or alters the terms of the transfer by which the interest so passes.

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(2) SUBSECTION (b)- The amendments made by subsection (b) shall apply to gifts made after the 

date of the enactment of this Act. 

SEC. 1942. UNIFORM EXEMPTION AMOUNT FOR GAMBLING WINNINGS SUBJECT TO 

WITHHOLDING. 

(a) IN GENERAL- Subparagraphs (A) and (C) of section 3402(q)(3) are each amended by striking 

`$1,000' and inserting `$5,000'. 

(b) EFFECTIVE DATE- The amendments made by subsection (a) shall apply to payments of winnings 

after December 31, 1992. 

Subtitle C--Health Care of Coal Miners 

SEC. 19141. SHORT TITLE. 

This subtitle may be cited as the `Coal Industry Retiree Health Benefit Act of 1992'. 

SEC. 19142. FINDINGS AND DECLARATION OF POLICY. 

(a) FINDINGS- The Congress finds that-- 

(1) the production, transportation, and use of coal substantially affects interstate and foreign 

commerce and the national public interest; and 

(2) in order to secure the stability of interstate commerce, it is necessary to modify the current 

private health care benefit plan structure for retirees in the coal industry to identify persons most 

responsible for plan liabilities in order to stabilize plan funding and allow for the provision of 

health care benefits to such retirees. 

(b) STATEMENT OF POLICY- It is the policy of this subtitle-- 

(1) to remedy problems with the provision and funding of health care benefits with respect to the 

beneficiaries of multiemployer benefit plans that provide health care benefits to retirees in the coal 

industry; 

(2) to allow for sufficient operating assets for such plans; and 

(3) to provide for the continuation of a privately financed self-sufficient program for the delivery 

of health care benefits to the beneficiaries of such plans. 

SEC. 19143. COAL INDUSTRY HEALTH BENEFITS PROGRAM. 

(a) IN GENERAL- The Internal Revenue Code of 1986 is amended by adding at the end the following 

new subtitle: 

`Subtitle J--Coal Industry Health Benefits 

`CHAPTER 99. Coal industry health benefits. 

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`CHAPTER 99--COAL INDUSTRY HEALTH BENEFITS 

`SUBCHAPTER A--Definitions of general applicability. 

`SUBCHAPTER B--Combined benefit fund. 

`SUBCHAPTER C--Health benefits of certain miners. 

`SUBCHAPTER D--Other provisions. 

`Subchapter A--Definitions of General Applicability 

`Sec. 9701. Definitions of general applicability. 

`SEC. 9701. DEFINITIONS OF GENERAL APPLICABILITY. 

`(a) PLANS AND FUNDS- For purposes of this chapter-- 

`(1) UMWA BENEFIT PLAN- 

`(A) IN GENERAL- The term `UMWA Benefit Plan' means a plan-- 

`(i) which is described in section 404(c), or a continuation thereof; and 

`(ii) which provides health benefits to retirees and beneficiaries of the industry which 

maintained the 1950 UMWA Pension Plan. 

`(B) 1950 UMWA BENEFIT PLAN- The term `1950 UMWA Benefit Plan' means a 

UMWA Benefit Plan, participation in which is substantially limited to individuals who 

retired before 1976. 

`(C) 1974 UMWA BENEFIT PLAN- The term `1974 UMWA Benefit Plan' means a 

UMWA Benefit Plan, participation in which is substantially limited to individuals who 

retired on or after January 1, 1976. 

`(2) 1950 UMWA PENSION PLAN- The term `1950 UMWA Pension Plan' means a pension plan 

described in section 404(c) (or a continuation thereof), participation in which is substantially 

limited to individuals who retired before 1976. 

`(3) 1974 UMWA PENSION PLAN- The term `1974 UMWA Pension Plan' means a pension plan 

described in section 404(c) (or a continuation thereof), participation in which is substantially 

limited to individuals who retired in 1976 and thereafter. 

`(4) 1992 UMWA BENEFIT PLAN- The term `1992 UMWA Benefit Plan' means the plan 

referred to in section 9713A. 

`(5) COMBINED FUND- The term `Combined Fund' means the United Mine Workers of America 

Combined Benefit Fund established under section 9702.

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`(b) AGREEMENTS- For purposes of this section-- 

`(1) COAL WAGE AGREEMENT- The term `coal wage agreement' means-- 

`(A) the National Bituminous Coal Wage Agreement, or 

`(B) any other agreement entered into between an employer in the coal industry and the 

United Mine Workers of America that required or requires one or both of the following: 

`(i) the provision of health benefits to retirees of such employer, eligibility for which 

is based on years of service credited under a plan established by the settlors and 

described in section 404(c) or a continuation of such plan; or 

`(ii) contributions to the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, 

or any predecessor thereof. 

`(2) SETTLORS- The term `settlors' means the United Mine Workers of America and the 

Bituminous Coal Operators' Association, Inc. (referred to in this chapter as the `BCOA'). 

`(3) NATIONAL BITUMINOUS COAL WAGE AGREEMENT- The term `National Bituminous 

Coal Wage Agreement' means a collective bargaining agreement negotiated by the BCOA and the 

United Mine Workers of America. 

`(c) TERMS RELATING TO OPERATORS- For purposes of this section-- 

`(1) SIGNATORY OPERATOR- The term `signatory operator' means a person which is or was a 

signatory to a coal wage agreement. 

`(2) RELATED PERSONS- 

`(A) IN GENERAL- A person shall be considered to be a related person to a signatory 

operator if that person is-- 

`(i) a member of the controlled group of corporations (within the meaning of section 

52(a)) which includes such signatory operator; 

`(ii) a trade or business which is under common control (as determined under section 

52(b)) with such signatory operator; or 

`(iii) any other person who is identified as having a partnership interest or joint 

venture with a signatory operator in a business within the coal industry, but only if 

such business employed eligible beneficiaries, except that this clause shall not apply 

to a person whose only interest is as a limited partner. 

A related person shall also include a successor in interest of any person described in clause 

(i), (ii), or (iii). 

`(B) TIME FOR DETERMINATION- The relationships described in clauses (i), (ii), and 

(iii) of subparagraph (A) shall be determined as of July 20, 1992, except that if, on July 20, 

1992, a signatory operator is no longer in business, the relationships shall be determined as 

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of the time immediately before such operator ceased to be in business. 

`(3) 1988 AGREEMENT OPERATOR- The term `1988 agreement operator' means-- 

`(A) a signatory operator which was a signatory to the 1988 National Bituminous Coal 

Wage Agreement, 

`(B) an employer in the coal industry which was a signatory to an agreement containing 

pension and health care contribution and benefit provisions which are the same as those 

contained in the 1988 National Bituminous Coal Wage Agreement, or 

`(C) an employer from which contributions were actually received after 1987 and before 

July 20, 1992, by the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan in 

connection with employment in the coal industry during the period covered by the 1988 

National Bituminous Coal Wage Agreement. 

`(4) LAST SIGNATORY OPERATOR- The term `last signatory operator' means, with respect to a 

coal industry retiree, a signatory operator which was the most recent coal industry employer of 

such retiree. 

`(5) ASSIGNED OPERATOR- The term `assigned operator' means, with respect to an eligible 

beneficiary defined in section 9703(f), the signatory operator to which liability under subchapter B 

with respect to the beneficiary is assigned under section 9706. 

`(6) OPERATORS OF DEPENDENT BENEFICIARIES- For purposes of this chapter, the 

signatory operator, last signatory operator, or assigned operator of any eligible beneficiary under 

this chapter who is a coal industry retiree shall be considered to be the signatory operator, last 

signatory operator, or assigned operator with respect to any other individual who is an eligible 

beneficiary under this chapter by reason of a relationship to the retiree. 

`(7) BUSINESS- For purposes of this chapter, a person shall be considered to be in business if 

such person conducts or derives revenue from any business activity, whether or not in the coal 

industry. 

`(d) ENACTMENT DATE- For purposes of this chapter, the term `enactment date' means the date of the 

enactment of this chapter. 

`Subchapter B--Combined Benefit Fund 

`Part I--Establishment and Benefits 

`Part II--Financing 

`Part III--Enforcement 

`Part IV--Other Provisions 

`PART I--ESTABLISHMENT AND BENEFITS

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`Sec. 9702. Establishment of the United Mine Workers of America Combined Benefit Fund. 

`Sec. 9703. Plan benefits. 

`SEC. 9702. ESTABLISHMENT OF THE UNITED MINE WORKERS OF AMERICA COMBINED 

BENEFIT FUND. 

`(a) ESTABLISHMENT- 

`(1) IN GENERAL- As soon as practicable (but not later than 60 days) after the enactment date, 

the persons described in subsection (b) shall designate the individuals to serve as trustees. Such 

trustees shall create a new private plan to be known as the United Mine Workers of America 

Combined Benefit Fund. 

`(2) MERGER OF RETIREE BENEFIT PLANS- As of February 1, 1993, the settlors of the 1950 

UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall cause such plans to be merged into 

the Combined Fund, and such merger shall not be treated as an employer withdrawal for purposes 

of any 1988 coal wage agreement. 

`(3) TREATMENT OF PLAN- The Combined Fund shall be-- 

`(A) a plan described in section 302(c)(5) of the Labor Management Relations Act, 1947 (29 

U.S.C. 186(c)(5)), 

`(B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1002(1)), and 

`(C) a multiemployer plan within the meaning of section 3(37) of such Act (29 U.S.C. 1002

(37)). 

`(4) TAX TREATMENT- For purposes of this title, the Combined Fund and any related trust shall 

be treated as an organization exempt from tax under section 501(a). 

`(b) BOARD OF TRUSTEES- 

`(1) IN GENERAL- For purposes of subsection (a), the board of trustees for the Combined Fund 

shall be appointed as follows: 

`(A) one individual who represents employers in the coal mining industry shall be 

designated by the BCOA; 

`(B) one individual shall be designated by the three employers, other than 1988 agreement 

operators, who have been assigned the greatest number of eligible beneficiaries under 

section 9706; 

`(C) two individuals designated by the United Mine Workers of America; and 

`(D) three persons selected by the persons appointed under subparagraphs (A), (B), and (C). 

`(2) SUCCESSOR TRUSTEES- Any successor trustee shall be appointed in the same manner as 

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the trustee being succeeded. The plan establishing the Combined Fund shall provide for the 

removal of trustees. 

`(3) SPECIAL RULES- 

`(A) BCOA- If the BCOA ceases to exist, any trustee or successor under paragraph (1)(A) 

shall be designated by the 3 employers who were members of the BCOA on the enactment 

date and who have been assigned the greatest number of eligible beneficiaries under section 

9706. 

`(B) FORMER SIGNATORIES- The initial trustee under paragraph (1)(B) shall be 

designated by the 3 employers, other than 1988 agreement operators, which the records of 

the 1950 UMWA Benefit Plan and 1974 UMWA Benefit Plan indicate have the greatest 

number of eligible beneficiaries as of the enactment date, and such trustee and any successor 

shall serve until November 1, 1993. 

`(c) PLAN YEAR- The first plan year of the Combined Fund shall begin February 1, 1993, and end 

September 30, 1993. Each succeeding plan year shall begin on October 1 of each calendar year. 

`SEC. 9703. PLAN BENEFITS. 

`(a) IN GENERAL- Each eligible beneficiary of the Combined Fund shall receive-- 

`(1) health benefits described in subsection (b), and 

`(2) in the case of an eligible beneficiary described in subsection (f)(1), death benefits coverage 

described in subsection (c). 

`(b) HEALTH BENEFITS- 

`(1) IN GENERAL- The trustees of the Combined Fund shall provide health care benefits to each 

eligible beneficiary by enrolling the beneficiary in a health care services plan which undertakes to 

provide such benefits on a prepaid risk basis. The trustees shall utilize all available plan resources 

to ensure that, consistent with paragraph (2), coverage under the managed care system shall to the 

maximum extent feasible be substantially the same as (and subject to the same limitations of) 

coverage provided under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of 

January 1, 1992. 

`(2) PLAN PAYMENT RATES- 

`(A) IN GENERAL- The trustees of the Combined Fund shall negotiate payment rates with 

the health care services plans described in paragraph (1) for each plan year which are in 

amounts which-- 

`(i) vary as necessary to ensure that beneficiaries in different geographic areas have 

access to a uniform level of health benefits; and 

`(ii) result in aggregate payments for such plan year from the Combined Fund which 

do not exceed the total premium payments required to be paid to the Combined Fund 

under section 9704(a) for the plan year, adjusted as provided in subparagraphs (B) and 

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(C). 

`(B) REDUCTIONS- The amount determined under subparagraph (A)(ii) for any plan year 

shall be reduced-- 

`(i) by the aggregate death benefit premiums determined under section 9704(c) for the 

plan year, and 

`(ii) by the amount reserved for plan administration under subsection (d). 

`(C) INCREASES- The amount determined under subparagraph (A)(ii) shall be increased-- 

`(i) by any reduction in the total premium payments required to be paid under section 

9704(a) by reason of transfers described in section 9705, 

`(ii) by any carryover to the plan year from any preceding plan year which-- 

`(I) is derived from amounts described in section 9704(e)(3)(B)(i), and 

`(II) the trustees elect to use to pay benefits for the current plan year, and 

`(iii) any interest earned by the Combined Fund which the trustees elect to use to pay 

benefits for the current plan year. 

`(3) QUALIFIED PROVIDERS- The trustees of the Combined Fund shall not enter into an 

agreement under paragraph (1) with any provider of services which is of a type which is required 

to be certified by the Secretary of Health and Human Services when providing services under title 

XVIII of the Social Security Act unless the provider is so certified. 

`(4) EFFECTIVE DATE- Benefits shall be provided under paragraph (1) on and after February 1, 

1993. 

`(c) DEATH BENEFITS COVERAGE- 

`(1) IN GENERAL- The trustees of the Combined Fund shall provide death benefits coverage to 

each eligible beneficiary described in subsection (f)(1) which is identical to the benefits provided 

under the 1950 UMWA Pension Plan or 1974 UMWA Pension Plan, whichever is applicable, on 

July 20, 1992. Such coverage shall be provided on and after February 1, 1993. 

`(2) TERMINATION OF COVERAGE- The 1950 UMWA Pension Plan and the 1974 UMWA 

Pension Plan shall each be amended to provide that death benefits coverage shall not be provided 

to eligible beneficiaries on and after February 1, 1993. This paragraph shall not prohibit such plans 

from subsequently providing death benefits not described in paragraph (1). 

`(d) RESERVES FOR ADMINISTRATION- The trustees of the Combined Fund may reserve for each 

plan year, for use in payment of the administrative costs of the Combined Fund, an amount not to exceed 

5 percent of the premiums to be paid to the Combined Fund under section 9704(a) during the plan year. 

`(e) LIMITATION ON ENROLLMENT- The Combined Fund shall not enroll any individual who is not 

receiving benefits under the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of July 20, 

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1992. 

`(f) ELIGIBLE BENEFICIARY- For purposes of this subchapter, the term `eligible beneficiary' means 

an individual who-- 

`(1) is a coal industry retiree who, on July 20, 1992, was eligible to receive, and receiving, benefits 

from the 1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, or 

`(2) on such date was eligible to receive, and receiving, benefits in either such plan by reason of a 

relationship to such retiree. 

`PART II--FINANCING

`Sec. 9704. Liability of assigned operators. 

`Sec. 9705. Transfers. 

`Sec. 9706. Assignment of eligible beneficiaries. 

`SEC. 9704. LIABILITY OF ASSIGNED OPERATORS. 

`(a) ANNUAL PREMIUMS- Each assigned operator shall pay to the Combined Fund for each plan year 

beginning on or after February 1, 1993, an annual premium equal to the sum of the following three 

premiums-- 

`(1) the health benefit premium determined under subsection (b) for such plan year, plus 

`(2) the death benefit premium determined under subsection (c) for such plan year, plus 

`(3) the unassigned beneficiaries premium determined under subsection (d) for such plan year. 

Any related person with respect to an assigned operator shall be jointly and severally liable for any 

premium required to be paid by such operator. 

`(b) HEALTH BENEFIT PREMIUM- For purposes of this chapter-- 

`(1) IN GENERAL- The health benefit premium for any plan year for any assigned operator shall 

be an amount equal to the product of the per beneficiary premium for the plan year multiplied by 

the number of eligible beneficiaries assigned to such operator under section 9706. 

`(2) PER BENEFICIARY PREMIUM- The Secretary of Health and Human Services shall 

calculate a per beneficiary premium for each plan year beginning on or after February 1, 1993, 

which is equal to the sum of-- 

`(A) the amount determined by dividing-- 

`(i) the aggregate amount of payments from the 1950 UMWA Benefit Plan and the 

1974 UMWA Benefit Plan for health benefits (less reimbursements but including 

administrative costs) for the plan year beginning July 1, 1991, for all individuals 

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covered under such plans for such plan year, by 

`(ii) the number of such individuals, plus 

`(B) the amount determined under subparagraph (A) multiplied by the percentage (if any) by 

which the medical component of the Consumer Price Index for the calendar year in which 

the plan year begins exceeds such component for 1992. 

`(3) ADJUSTMENTS FOR MEDICARE REDUCTIONS- If, by reason of a reduction in benefits 

under title XVIII of the Social Security Act, the level of health benefits under the Combined Fund 

would be reduced, the trustees of the Combined Fund shall increase the per beneficiary premium 

for the plan year in which the reduction occurs and each subsequent plan year by the amount 

necessary to maintain the level of health benefits which would have been provided without such 

reduction. 

`(c) DEATH BENEFIT PREMIUM- The death benefit premium for any plan year for any assigned 

operator shall be equal to the applicable percentage of the amount, actuarially determined, which the 

Combined Fund will be required to pay during the plan year for death benefits coverage described in 

section 9703(c). 

`(d) UNASSIGNED BENEFICIARIES PREMIUM- The unassigned beneficiaries premium for any plan 

year for any assigned operator shall be equal to the applicable percentage of the product of the per 

beneficiary premium for the plan year multiplied by the number of eligible beneficiaries who are not 

assigned under section 9706 to any person for such plan year. 

`(e) PREMIUM ACCOUNTS; ADJUSTMENTS- 

`(1) ACCOUNTS- The trustees of the Combined Fund shall establish and maintain 3 separate 

accounts for each of the premiums described in subsections (b), (c), and (d). Such accounts shall 

be credited with the premiums received and debited with expenditures allocable to such premiums.

`(2) ALLOCATIONS- 

`(A) ADMINISTRATIVE EXPENSES- Administrative costs for any plan year shall be 

allocated to premium accounts under paragraph (1) on the basis of expenditures (other than 

administrative costs) from such accounts during the preceding plan year. 

`(B) INTEREST- Interest shall be allocated to the account established for health benefit 

premiums. 

`(3) SHORTFALLS AND SURPLUSES- 

`(A) IN GENERAL- Except as provided in subparagraph (B), if, for any plan year, there is a 

shortfall or surplus in any premium account, the premium for the following plan year for 

each assigned operator shall be proportionately reduced or increased, whichever is 

applicable, by the amount of such shortfall or surplus. 

`(B) EXCEPTION- Subparagraph (A) shall not apply to any surplus in the health benefit 

premium account or the unassigned beneficiaries premium account which is attributable to--

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`(i) the excess of the premiums credited to such account for a plan year over the 

benefits (and administrative costs) debited to such account for the plan year, but such 

excess shall only be available for purposes of the carryover described in section 9703

(b)(2)(C)(ii) (relating to carryovers of premiums not used to provide benefits), or 

`(ii) interest credited under paragraph (2)(B) for the plan year or any preceding plan 

year. 

`(C) NO AUTHORITY FOR INCREASED PAYMENTS- Nothing in this paragraph shall 

be construed to allow expenditures for health care benefits for any plan year in excess of the 

limit under section 9703(b)(2). 

`(f) APPLICABLE PERCENTAGE- For purposes of this section-- 

`(1) IN GENERAL- The term `applicable percentage' means, with respect to any assigned 

operator, the percentage determined by dividing the number of eligible beneficiaries assigned 

under section 9706 to such operator by the total number of eligible beneficiaries assigned under 

section 9706 to all such operators (determined on the basis of assignments as of October 1, 1993). 

`(2) ANNUAL ADJUSTMENTS- In the case of any plan year beginning on or after October 1, 

1994, the applicable percentage for any assigned operator shall be redetermined under paragraph 

(1) by making the following changes to the assignments as of October 1, 1993: 

`(A) Such assignments shall be modified to reflect any changes during the period beginning 

October 1, 1993, and ending on the last day of the preceding plan year pursuant to the 

appeals process under section 9706(f). 

`(B) The total number of assigned eligible beneficiaries shall be reduced by the eligible 

beneficiaries of assigned operators which (and all related persons with respect to which) had 

ceased business (within the meaning of section 9701(c)(6)) during the period described in 

subparagraph (A). 

`(g) PAYMENT OF PREMIUMS- 

`(1) IN GENERAL- The annual premium under subsection (a) for any plan year shall be payable 

in 12 equal monthly installments, due on the twenty-fifth day of each calendar month in the plan 

year. In the case of the plan year beginning February 1, 1993, the annual premium under 

subsection (a) shall be added to such premium for the plan year beginning October 1, 1993. 

`(2) DEDUCTIBILITY- Any premium required by this section shall be deductible without regard 

to any limitation on deductibility based on the prefunding of health benefits. 

`(h) INFORMATION- The trustees of the Combined Fund shall, not later than 60 days after the 

enactment date, furnish to the Secretary of Health and Human Services information as to the benefits and 

covered beneficiaries under the fund, and such other information as the Secretary may require to 

compute any premium under this section. 

`(i) TRANSITION RULES- 

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`(A) 1ST YEAR COSTS- During the plan year of the Combined Fund beginning February 

1, 1993, the 1988 agreement operators shall make contributions to the Combined Fund in 

amounts necessary to pay benefits and administrative costs of the Combined Fund incurred 

during such year, reduced by the amount transferred to the Combined Fund under section 

9705(a) on February 1, 1993. 

`(B) DEFICITS FROM MERGED PLANS- During the period beginning February 1, 1993, 

and ending September 30, 1994, the 1988 agreement operators shall make contributions to 

the Combined Fund as are necessary to pay off the expenses accrued (and remaining unpaid) 

by the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 1993, 

reduced by the assets of such plans as of such date. 

`(C) FAILURE- If any 1988 agreement operator fails to meet any obligation under this 

paragraph, any contributions of such operator to the Combined Fund or any other plan 

described in section 404(c) shall not be deductible under this title until such time as the 

failure is corrected. 

`(D) PREMIUM REDUCTIONS- 

`(i) 1ST YEAR PAYMENTS- In the case of a 1988 agreement operator making 

contributions under subparagraph (A), the premium of such operator under subsection 

(a) shall be reduced by the amount paid under subparagraph (A) by such operator for 

the plan year beginning February 1, 1993. 

`(ii) DEFICIT PAYMENTS- In the case a 1988 agreement operator making 

contributions under subparagraph (B), the premium of such operator under subsection 

(a) shall be reduced by the amounts which are paid to the Combined Fund by reason 

of claims arising in connection with the 1950 UMWA Benefit Plan and the 1974 

UMWA Benefit Plan as of February 1, 1993, including claims based on the 

`evergreen clause' found in the language of the 1950 UMWA Benefit Plan and the 

1974 UMWA Benefit Plan, and which are allocated to such operator under 

subparagraph (E). 

`(iii) LIMITATION- Clause (ii) shall not apply to the extent the amounts paid exceed 

the contributions. 

`(iv) PLAN YEARS- Premiums under subsection (a) shall be reduced for the first plan 

year for which amounts described in clause (i) or (ii) are available and for any 

succeeding plan year until such amounts are exhausted. 

`(E) ALLOCATIONS OF CONTRIBUTIONS AND REFUNDS- Contributions under 

subparagraphs (A) and (B), and premium reductions under subparagraph (D)(ii), shall be 

made ratably on the basis of aggregate contributions made by such operators under the 

applicable 1988 coal wage agreements as of January 31, 1993. 

`(2) 1ST PLAN YEAR- In the case of the plan year of the Combined Fund beginning February 1, 

1993-- 

`(A) the premiums under subsections (a)(1) and (a)(3) shall be 67 percent of such premiums 

without regard to this paragraph, and

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`(B) the premiums under subsection (a) shall be paid as provided in subsection (g). 

`(3) STARTUP COSTS- The 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan shall 

pay the costs of the Combined Fund incurred before February 1, 1993. For purposes of this 

section, such costs shall be treated as administrative expenses incurred for the plan year beginning 

February 1, 1993. 

`SEC. 9705. TRANSFERS. 

`(a) TRANSFER OF ASSETS FROM 1950 UMWA PENSION PLAN- 

`(1) IN GENERAL- From the funds reserved under paragraph (2), the board of trustees of the 1950

UMWA Pension Plan shall transfer to the Combined Fund-- 

`(A) $70,000,000 on February 1, 1993, 

`(B) $70,000,000 on October 1, 1993, and 

`(C) $70,000,000 on October 1, 1994. 

`(2) RESERVATION- Immediately upon the enactment date, the board of trustees of the 1950 

UMWA Pension Plan shall segregate $210,000,000 from the general assets of the plan. Such funds 

shall be held in the plan until disbursed pursuant to paragraph (1). Any interest on such funds shall 

be deposited into the general assets of the 1950 UMWA Pension Plan. 

`(3) USE OF FUNDS- Amounts transferred to the Combined Fund under paragraph (1) shall-- 

`(A) in the case of the transfer on February 1, 1993, be used to proportionately reduce the 

premium of each assigned operator under section 9704(a) for the plan year of the Fund 

beginning February 1, 1993, and 

`(B) in the case of any other such transfer, be used to proportionately reduce the unassigned 

beneficiary premium under section 9704(a)(3) and the death benefit premium under section 

9704(a)(2) of each assigned operator for the plan year in which transferred and for any 

subsequent plan year in which such funds remain available. 

Such funds may not be used to pay any amounts required to be paid by the 1988 agreement 

operators under section 9704(i)(1)(B). 

`(4) TAX TREATMENT; VALIDITY OF TRANSFER- 

`(A) NO DEDUCTION- No deduction shall be allowed under this title with respect to any 

transfer pursuant to paragraph (1), but such transfer shall not adversely affect the 

deductibility (under applicable provisions of this title) of contributions previously made by 

employers, or amounts hereafter contributed by employers, to the 1950 UMWA Pension 

Plan, the 1950 UMWA Benefit Plan, the 1974 UMWA Pension Plan, the 1974 UMWA 

Benefit Plan, the 1992 UMWA Benefit Plan, or the Combined Fund. 

`(B) OTHER TAX PROVISIONS- Any transfer pursuant to paragraph (1)-- 

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`(i) shall not be treated as an employer reversion from a qualified plan for purposes of 

section 4980, and 

`(ii) shall not be includible in the gross income of any employer maintaining the 1950 

UMWA Pension Plan. 

`(5) TREATMENT OF TRANSFER- Any transfer pursuant to paragraph (1) shall not be deemed 

to violate, or to be prohibited by, any provision of law, or to cause the settlors, joint board of 

trustees, employers or any related person to incur or be subject to liability, taxes, fines, or penalties 

of any kind whatsoever. 

`(b) TRANSFERS FROM ABANDONED MINE RECLAMATION FUND- 

`(1) IN GENERAL- The Combined Fund shall include any amount transferred to the Fund under 

section 402(h) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(h)). 

`(2) USE OF FUNDS- Any amount transferred under paragraph (1) for any fiscal year shall be 

used to proportionately reduce the unassigned beneficiary premium under section 9704(a)(3) of 

each assigned operator for the plan year in which transferred. 

`SEC. 9706. ASSIGNMENT OF ELIGIBLE BENEFICIARIES. 

`(a) IN GENERAL- For purposes of this chapter, the Secretary of Health and Human Services shall, 

before October 1, 1993, assign each coal industry retiree who is an eligible beneficiary to a signatory 

operator which (or any related person with respect to which) remains in business in the following order: 

`(1) First, to the signatory operator which-- 

`(A) was a signatory to the 1978 coal wage agreement or any subsequent coal wage 

agreement, and 

`(B) was the most recent signatory operator to employ the coal industry retiree in the coal 

industry for at least 2 years. 

`(2) Second, if the retiree is not assigned under paragraph (1), to the signatory operator which-- 

`(A) was a signatory to the 1978 coal wage agreement or any subsequent coal wage 

agreement, and 

`(B) was the most recent signatory operator to employ the coal industry retiree in the coal 

industry. 

`(3) Third, if the retiree is not assigned under paragraph (1) or (2), to the signatory operator which 

employed the coal industry retiree in the coal industry for a longer period of time than any other 

signatory operator prior to the effective date of the 1978 coal wage agreement. 

`(b) RULES RELATING TO EMPLOYMENT AND REASSIGNMENT UPON PURCHASE- For 

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`(A) RELATED PERSON- Any employment of a coal industry retiree in the coal industry 

by a signatory operator shall be treated as employment by any related persons to such 

operator. 

`(B) CERTAIN EMPLOYMENT DISREGARDED- Employment with-- 

`(i) a person which is (and all related persons with respect to which are) no longer in 

business, or 

`(ii) a person during a period during which such person was not a signatory to a coal 

wage agreement, 

shall not be taken into account. 

`(2) REASSIGNMENT UPON PURCHASE- If a person becomes a successor of an assigned 

operator after the enactment date, the assigned operator may transfer the assignment of an eligible 

beneficiary under subsection (a) to such successor, and such successor shall be treated as the 

assigned operator with respect to such eligible beneficiary for purposes of this chapter. 

Notwithstanding the preceding sentence, the assigned operator transferring such assignment (and 

any related person) shall remain the guarantor of the benefits provided to the eligible beneficiary 

under this chapter. An assigned operator shall notify the trustees of the Combined Fund of any 

transfer described in this paragraph. 

`(c) IDENTIFICATION OF ELIGIBLE BENEFICIARIES- The 1950 UMWA Benefit Plan and the 1974 

UMWA Benefit Plan shall, by the later of October 1, 1992, or the twentieth day after the enactment date, 

provide to the Secretary of Health and Human Services a list of the names and social security account 

numbers of each eligible beneficiary, including each deceased eligible beneficiary if any other individual 

is an eligible beneficiary by reason of a relationship to such deceased eligible beneficiary. In addition, 

the plans shall provide, where ascertainable from plan records, the names of all persons described in 

subsection (a) with respect to any eligible beneficiary or deceased eligible beneficiary. 

`(d) COOPERATION BY OTHER AGENCIES AND PERSONS- 

`(1) COOPERATION- The head of any department, agency, or instrumentality of the United 

States shall cooperate fully and promptly with the Secretary of Health and Human Services in 

providing information which will enable the Secretary to carry out his responsibilities under this 

section. 

`(2) PROVIDING OF INFORMATION- 

`(A) IN GENERAL- Notwithstanding any other provision of law, including section 6103, 

the head of any other agency, department, or instrumentality shall, upon receiving a written 

request from the Secretary of Health and Human Services in connection with this section, 

cause a search to be made of the files and records maintained by such agency, department, 

or instrumentality with a view to determining whether the information requested is 

contained in such files or records. The Secretary shall be advised whether the search 

disclosed the information requested, and, if so, such information shall be promptly 

transmitted to the Secretary, except that if the disclosure of any requested information would 

contravene national policy or security interests of the United States, or the confidentiality of 

census data, the information shall not be transmitted and the Secretary shall be so advised.

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`(B) LIMITATION- Any information provided under subparagraph (A) shall be limited to 

information necessary for the Secretary to carry out his duties under this section. 

`(3) TRUSTEES- The trustees of the Combined Fund, the 1950 UMWA Benefit Plan, the 1974 

UMWA Benefit Plan, the 1950 UMWA Pension Plan, and the 1974 UMWA Pension Plan shall 

fully and promptly cooperate with the Secretary in furnishing, or assisting the Secretary to obtain, 

any information the Secretary needs to carry out the Secretary's responsibilities under this section. 

`(e) NOTICE BY SECRETARY- 

`(1) NOTICE TO FUND- The Secretary of Health and Human Services shall advise the trustees of 

the Combined Fund of the name of each person identified under this section as an assigned 

operator, and the names and social security account numbers of eligible beneficiaries with respect 

to whom he is identified. 

`(2) OTHER NOTICE- The Secretary of Health and Human Services shall notify each assigned 

operator of the names and social security account numbers of eligible beneficiaries who have been 

assigned to such person under this section and a brief summary of the facts related to the basis for 

such assignments. 

`(f) RECONSIDERATION BY SECRETARY- 

`(1) IN GENERAL- Any assigned operator receiving a notice under subsection (e)(2) with respect 

to an eligible beneficiary may, within 30 days of receipt of such notice, request from the Secretary 

of Health and Human Services detailed information as to the work history of the beneficiary and 

the basis of the assignment. 

`(2) REVIEW- An assigned operator may, within 30 days of receipt of the information under 

paragraph (1), request review of the assignment. The Secretary of Health and Human Services 

shall conduct such review if the Secretary finds the operator provided evidence with the request 

constituting a prima facie case of error. 

`(3) RESULTS OF REVIEW- 

`(A) ERROR- If the Secretary of Health and Human Services determines under a review 

under paragraph (2) that an assignment was in error-- 

`(i) the Secretary shall notify the assigned operator and the trustees of the Combined 

Fund and the trustees shall reduce the premiums of the operator under section 9704 by 

(or if there are no such premiums, repay) all premiums paid under section 9704 with 

respect to the eligible beneficiary, and 

`(ii) the Secretary shall review the beneficiary's record for reassignment under 

subsection (a). 

`(B) NO ERROR- If the Secretary of Health and Human Services determines under a review 

conducted under paragraph (2) that no error occurred, the Secretary shall notify the assigned 

operator. 

`(4) DETERMINATIONS- Any determination by the Secretary of Health and Human Services 

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under paragraph (2) or (3) shall be final. 

`(5) PAYMENT PENDING REVIEW- An assigned operator shall pay the premiums under section 

9704 pending review by the Secretary of Health and Human Services or by a court under this 

subsection. 

`(6) PRIVATE ACTIONS- Nothing in this section shall preclude the right of any person to bring a 

separate civil action against another person for responsibility for assigned premiums, 

notwithstanding any prior decision by the Secretary. 

`(g) CONFIDENTIALITY OF INFORMATION- Any person to which information is provided by the 

Secretary of Health and Human Services under this section shall not disclose such information except in 

any proceedings related to this section. Any civil or criminal penalty which is applicable to an 

unauthorized disclosure under section 6103 shall apply to any unauthorized disclosure under this section.

`PART III--ENFORCEMENT

`Sec. 9707. Failure to pay premium. 

`SEC. 9707. FAILURE TO PAY PREMIUM. 

`(a) GENERAL RULE- There is hereby imposed a penalty on the failure of any assigned operator to pay 

any premium required to be paid under section 9704 with respect to any eligible beneficiary. 

`(b) AMOUNT OF PENALTY- The amount of the penalty imposed by subsection (a) on any failure with 

respect to any eligible beneficiary shall be $100 per day in the noncompliance period with respect to any 

such failure. 

`(c) NONCOMPLIANCE PERIOD- For purposes of this section, the term `noncompliance period' 

means, with respect to any failure to pay any premium or installment thereof, the period-- 

`(1) beginning on the due date for such premium or installment, and 

`(2) ending on the date of payment of such premium or installment. 

`(d) LIMITATIONS ON AMOUNT OF PENALTY- 

`(1) IN GENERAL- No penalty shall be imposed by subsection (a) on any failure during any 

period for which it is established to the satisfaction of the Secretary of the Treasury that none of 

the persons responsible for such failure knew, or exercising reasonable diligence, would have 

known, that such failure existed. 

`(2) CORRECTIONS- No penalty shall be imposed by subsection (a) on any failure if-- 

`(A) such failure was due to reasonable cause and not to willful neglect, and 

`(B) such failure is corrected during the 30-day period beginning on the 1st date that any of 

the persons responsible for such failure knew, or exercising reasonable diligence would have 

known, that such failure existed.

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`(3) WAIVER- In the case of a failure that is due to reasonable cause and not to willful neglect, the 

Secretary of the Treasury may waive all or part of the penalty imposed by subsection (a) for 

failures to the extent that the Secretary determines, in his sole discretion, that the payment of such 

penalty would be excessive relative to the failure involved. 

`(e) LIABILITY FOR PENALTY- The person failing to meet the requirements of section 9704 shall be 

liable for the penalty imposed by subsection (a). 

`(f) TREATMENT- For purposes of this title, the penalty imposed by this section shall be treated in the 

same manner as the tax imposed by section 4980B. 

`PART IV--OTHER PROVISIONS

`Sec. 9708. Effect on pending claims or obligations. 

`SEC. 9708. EFFECT ON PENDING CLAIMS OR OBLIGATIONS. 

`All liability for contributions to the Combined Fund that arises on and after February 1, 1993, shall be 

determined exclusively under this chapter, including all liability for contributions to the 1950 UMWA 

Benefit Plan and the 1974 UMWA Benefit Plan for coal production on and after February 1, 1993. 

However, nothing in this chapter is intended to have any effect on any claims or obligations arising in 

connection with the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of February 1, 

1993, including claims or obligations based on the `evergreen' clause found in the language of the 1950 

UMWA Benefit Plan and the 1974 UMWA Benefit Plan. This chapter shall not be construed to affect 

any rights of subrogation of any 1988 agreement operator with respect to contributions due to the 1950 

UMWA Benefit Plan or the 1974 UMWA Benefit Plan as of February 1, 1993. 

`Subchapter C--Health Benefits of Certain Miners 

`Part I--Individual employer plans 

`Part II--1992 UMWA benefit plan 

`PART I--INDIVIDUAL EMPLOYER PLANS

`Sec. 9711. Continued obligations of individual employer plans. 

`SEC. 9711. CONTINUED OBLIGATIONS OF INDIVIDUAL EMPLOYER PLANS. 

`(a) COVERAGE OF CURRENT RECIPIENTS- The last signatory operator of any individual who, as 

of February 1, 1993, is receiving retiree health benefits from an individual employer plan maintained 

pursuant to a 1978 or subsequent coal wage agreement shall continue to provide health benefits coverage 

to such individual and the individual's eligible beneficiaries which is substantially the same as (and 

subject to all the limitations of) the coverage provided by such plan as of January 1, 1992. Such coverage 

shall continue to be provided for as long as the last signatory operator (and any related person) remains 

in business. 

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`(1) IN GENERAL- The last signatory operator of any individual who, as of February 1, 1993, is 

not receiving retiree health benefits under the individual employer plan maintained by the last 

signatory operator pursuant to a 1978 or subsequent coal wage agreement, but has met the age and 

service requirements for eligibility to receive benefits under such plan as of such date, shall, at 

such time as such individual becomes eligible to receive benefits under such plan, provide health 

benefits coverage to such individual and the individual's eligible beneficiaries which is described 

in paragraph (2). This paragraph shall not apply to any individual who retired from the coal 

industry after September 30, 1994, or any eligible beneficiary of such individual. 

`(2) COVERAGE- Subject to the provisions of subsection (d), health benefits coverage is 

described in this paragraph if it is substantially the same as (and subject to all the limitations of) 

the coverage provided by the individual employer plan as of January 1, 1992. Such coverage shall 

continue for as long as the last signatory operator (and any related person) remains in business. 

`(c) JOINT AND SEVERAL LIABILITY OF RELATED PERSONS- Each related person of a last 

signatory operator to which subsection (a) or (b) applies shall be jointly and severally liable with the last 

signatory operator for the provision of health care coverage described in subsection (a) or (b). 

`(d) MANAGED CARE AND COST CONTAINMENT- The last signatory operator shall not be treated 

as failing to meet the requirements of subsection (a) or (b) if benefits are provided to eligible 

beneficiaries under managed care and cost containment rules and procedures described in section 9712

(c) or agreed to by the last signatory operator and the United Mine Workers of America. 

`(e) TREATMENT OF NONCOVERED EMPLOYEES- The existence, level, and duration of benefits 

provided to former employees of a last signatory operator (and their eligible beneficiaries) who are not 

otherwise covered by this chapter and who are (or were) covered by a coal wage agreement shall only be 

determined by, and shall be subject to, collective bargaining, lawful unilateral action, or other applicable 

law. 

`(f) ELIGIBLE BENEFICIARY- For purposes of this section, the term `eligible beneficiary' means any 

individual who is eligible for health benefits under a plan described in subsection (a) or (b) by reason of 

the individual's relationship with the retiree described in such subsection (or to an individual who, based 

on service and employment history at the time of death, would have been so described but for such 

death). 

`(g) RULES APPLICABLE TO THIS PART AND PART II- For purposes of this part and part II-- 

`(1) SUCCESSOR- The term `last signatory operator' shall include a successor in interest of such 

operator. 

`(2) REASSIGNMENT UPON PURCHASE- If a person becomes a successor of a last signatory 

operator after the enactment date, the last signatory operator may transfer any liability of such 

operator under this chapter with respect to an eligible beneficiary to such successor, and such 

successor shall be treated as the last signatory operator with respect to such eligible beneficiary for 

purposes of this chapter. Notwithstanding the preceding sentence, the last signatory operator 

transferring such assignment (and any related person) shall remain the guarantor of the benefits 

provided to the eligible beneficiary under this chapter. A last signatory operator shall notify the 

trustees of the 1992 UMWA Benefit Plan of any transfer described in this paragraph. 

`PART II--1992 UMWA BENEFIT PLAN

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`Sec. 9712. Establishment and coverage of 1992 UMWA Benefit Plan. 

`SEC. 9712. ESTABLISHMENT AND COVERAGE OF 1992 UMWA BENEFIT PLAN. 

`(a) CREATION OF PLAN- 

`(1) IN GENERAL- As soon as practicable after the enactment date, the settlors shall create a 

separate private plan which shall be known as the United Mine Workers of America 1992 Benefit 

Plan. For purposes of this title, the 1992 UMWA Benefit Plan shall be treated as an organization 

exempt from taxation under section 501(a). The settlors shall be responsible for designing the 

structure, administration and terms of the 1992 UMWA Benefit Plan, and for appointment and 

removal of the members of the board of trustees. The board of trustees shall initially consist of five 

members and shall thereafter be the number set by the settlors. 

`(2) TREATMENT OF PLAN- The 1992 UMWA Benefit Plan shall be-- 

`(A) a plan described in section 302(c)(5) of the Labor Management Relations Act, 1947 (29 

U.S.C. 186(c)(5)), 

`(B) an employee welfare benefit plan within the meaning of section 3(1) of the Employee 

Retirement Income Security Act of 1974 (29 U.S.C. 1002(1)), and 

`(C) a multiemployer plan within the meaning of section 3(37) of such Act (29 U.S.C. 1002

(37)). 

`(b) COVERAGE REQUIREMENT- 

`(1) IN GENERAL- The 1992 UMWA Benefit Plan shall only provide health benefits coverage to 

any eligible beneficiary who is not eligible for benefits under the Combined Fund and shall not 

provide such coverage to any other individual. 

`(2) ELIGIBLE BENEFICIARY- For purposes of this section, the term `eligible beneficiary' 

means an individual who-- 

`(A) but for the enactment of this chapter, would be eligible to receive benefits from the 

1950 UMWA Benefit Plan or the 1974 UMWA Benefit Plan, based upon age and service 

earned as of February 1, 1993; or 

`(B) with respect to whom coverage is required to be provided under section 9711, but who 

does not receive such coverage from the applicable last signatory operator or any related 

person, 

and any individual who is eligible for benefits by reason of a relationship to an individual 

described in subparagraph (A) or (B). In no event shall the 1992 UMWA Benefit Plan provide 

health benefits coverage to any eligible beneficiary who is a coal industry retiree who retired from 

the coal industry after September 30, 1994, or any beneficiary of such individual. 

`(c) HEALTH BENEFITS- 

`(1) IN GENERAL- The 1992 UMWA Benefit Plan shall provide health care benefits coverage to 

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each eligible beneficiary which is substantially the same as (and subject to all the limitations of) 

coverage provided under the 1950 UMWA Benefit Plan and the 1974 UMWA Benefit Plan as of 

January 1, 1992. 

`(2) MANAGED CARE- The 1992 UMWA Benefit Plan shall develop managed care and cost 

containment rules which shall be applicable to the payment of benefits under this subsection. 

Application of such rules shall not cause the plan to be treated as failing to meet the requirements 

of this subsection. Such rules shall preserve freedom of choice while reinforcing managed care 

network use by allowing a point of service decision as to whether a network medical provider will 

be used. Major elements of such rules may include, but are not limited to, elements described in 

paragraph (3). 

`(3) MAJOR ELEMENTS OF RULES- Elements described in this paragraph are-- 

`(A) implementing formulary for drugs and subjecting the prescription program to a rigorous 

review of appropriate use, 

`(B) obtaining a unit price discount in exchange for patient volume and preferred provider 

status with the amount of the potential discount varying by geographic region, 

`(C) limiting benefit payments to physicians to the allowable charge under title XVIII of the 

Social Security Act, while protecting beneficiaries from balance billing by providers, 

`(D) utilizing, in the claims payment function `appropriateness of service' protocols under 

title XVIII of the Social Security Act if more stringent, 

`(E) creating mandatory utilization review (UR) procedures, but placing the responsibility to 

follow such procedures on the physician or hospital, not the beneficiaries, 

`(F) selecting the most efficient physicians and state-of-the-art utilization management 

techniques, including ambulatory care techniques, for medical services delivered by the 

managed care network, and 

`(G) utilizing a managed care network provider system, as practiced in the health care 

industry, at the time medical services are needed (point-of-service) in order to receive 

maximum benefits available under this subsection. 

`(4) LAST SIGNATORY OPERATORS- The board of trustees of the 1992 UMWA Benefit Plan 

shall permit any last signatory operator required to maintain an individual employer plan under 

section 9711 to utilize the managed care and cost containment rules and programs developed under 

this subsection if the operator elects to do so. 

`(5) STANDARDS OF QUALITY- Any managed care system or cost containment adopted by the 

board of trustees of the 1992 UMWA Benefit Plan or by a last signatory operator may not be 

implemented unless it is approved by, and meets the standards of quality adopted by, a medical 

peer review panel, which has been established-- 

`(A) by the settlors, or 

`(B) by the United Mine Workers of America and a last signatory operator or group of 

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operators. 

Standards of quality shall include accessibility to medical care, taking into account that 

accessibility requirements may differ depending on the nature of the medical need. 

`(d) GUARANTEE OF BENEFITS- 

`(1) IN GENERAL- All 1988 last signatory operators shall be responsible for financing the 

benefits described in subsection (c), in accordance with contribution requirements established in 

the 1992 UMWA Benefit Plan. Such contribution requirements, which shall be applied uniformly 

to each 1988 last signatory operator, on the basis of the number of eligible and potentially eligible 

beneficiaries attributable to each operator, shall include: 

`(A) the payment of an annual prefunding premium for all eligible and potentially eligible 

beneficiaries attributable to a 1988 last signatory operator, 

`(B) the payment of a monthly per beneficiary premium by each 1988 last signatory operator 

for each eligible beneficiary of such operator who is described in subsection (b)(2) and who 

is receiving benefits under the 1992 UMWA Benefit Plan, and 

`(C) the provision of security (in the form of a bond, letter of credit or cash escrow) in an 

amount equal to a portion of the projected future cost to the 1992 UMWA Benefit Plan of 

providing health benefits for eligible and potentially eligible beneficiaries attributable to the 

1988 last signatory operator. If a 1988 last signatory operator is unable to provide the 

security required, the 1992 UMWA Benefit Plan shall require the operator to pay an annual 

prefunding premium that is greater than the premium otherwise applicable. 

`(2) ADJUSTMENTS- The 1992 UMWA Benefit Plan shall provide for-- 

`(A) annual adjustments of the per beneficiary premium to cover changes in the cost of 

providing benefits to eligible beneficiaries, and 

`(B) adjustments as necessary to the annual prefunding premium to reflect changes in the 

cost of providing benefits to eligible beneficiaries for whom per beneficiary premiums are 

not paid. 

`(3) ADDITIONAL LIABILITY- Any last signatory operator who is not a 1988 last signatory 

operator shall pay the monthly per beneficiary premium under paragraph (1)(B) for each eligible 

beneficiary described in such paragraph attributable to that operator. 

`(4) JOINT AND SEVERAL LIABILITY- A 1988 last signatory operator or last signatory 

operator described in paragraph (3), and any related person to any such operator, shall be jointly 

and severally liable with such operator for any amount required to be paid by such operator under 

this section. 

`(5) DEDUCTIBILITY- Any premium required by this section shall be deductible without regard 

to any limitation on deductibility based on the prefunding of health benefits. 

`(6) 1988 LAST SIGNATORY OPERATOR- For purposes of this section, the term `1988 last 

signatory operator' means a last signatory operator which is a 1988 agreement operator.

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`Subchapter D--Other Provisions 

`Sec. 9721. Civil enforcement. 

`Sec. 9722. Sham transactions. 

`SEC. 9721. CIVIL ENFORCEMENT. 

`The provisions of section 4301 of the Employee Retirement Income Security Act of 1974 shall apply to 

any claim arising out of an obligation to pay any amount required to be paid by this chapter in the same 

manner as any claim arising out of an obligation to pay withdrawal liability under subtitle E of title IV of 

such Act. For purposes of the preceding sentence, a signatory operator and related persons shall be 

treated in the same manner as employers. 

`SEC. 9722. SHAM TRANSACTIONS. 

`If a principal purpose of any transaction is to evade or avoid liability under this chapter, this chapter 

shall be applied (and such liability shall be imposed) without regard to such transaction.' 

(b) AMENDMENTS TO SURFACE MINING ACT- 

(1) EXTENSION OF FEE PROGRAM- Section 402(b) of the Surface Mining Control and 

Reclamation Act of 1977 (30 U.S.C. 1232(b)) is amended by striking `September 30, 1995' and 

inserting `September 30, 2004'. 

(2) TRANSFER TO FUND- Section 402 of such Act (30 U.S.C. 1232) is amended by adding at 

the end the following new subsection: 

`(h) TRANSFER OF FUNDS TO COMBINED FUND- (1) In the case of any fiscal year beginning on or 

after October 1, 1995, with respect to which fees are required to be paid under this section, the Secretary 

shall, as of the beginning of such fiscal year and before any allocation under subsection (g), make the 

transfer provided in paragraph (2). 

`(2) The Secretary shall transfer from the fund to the United Mine Workers of America Combined 

Benefit Fund established under section 9702 of the Internal Revenue Code of 1986 for any fiscal year an 

amount equal to the sum of-- 

`(A) the amount of the interest which the Secretary estimates will be earned and paid to the Fund 

during the fiscal year, plus 

`(B) the amount by which the amount described in subparagraph (A) is less than $70,000,000. 

`(3)(A) The aggregate amount which may be transferred under paragraph (2) for any fiscal year shall not 

exceed the amount of expenditures which the trustees of the Combined Fund estimate will be debited 

against the unassigned beneficiaries premium account under section 9704(e) of the Internal Revenue 

Code of 1986 for the fiscal year of the Combined Fund in which the transfer is made. 

`(B) The aggregate amount which may be transferred under paragraph (2)(B) for all fiscal years shall not 

exceed an amount equivalent to all interest earned and paid to the fund after September 30, 1992, and 

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before October 1, 1995. 

`(4) If, for any fiscal year, the amount transferred is more or less than the amount required to be 

transferred, the Secretary shall appropriately adjust the amount transferred for the next fiscal year.' 

(3) CONFORMING AMENDMENTS- (A) Section 401(c) of such Act (30 U.S.C. 1231(c)) is 

amended by striking `and' at the end of paragraph (11), by redesignating paragraph (12) as 

paragraph (13), and by adding after paragraph (11) the following new paragraph: 

`(12) for the purpose described in section 402(h); and'. 

(B) Section 402(g)(1) of such Act (30 U.S.C. 1232(g)) is amended by striking `Moneys' and 

inserting `Except as provided in subsection (h), moneys'. 

TITLE XX--GENERAL PROVISIONS; REDUCTION OF OIL VULNERABILITY 

SEC. 2001. GOALS. 

It is the goal of the United States in carrying out energy supply and energy conservation research and 

development-- 

(1) to strengthen national energy security by reducing dependence on imported oil; 

(2) to increase the efficiency of the economy by meeting future needs for energy services at the 

lowest total cost to the Nation, including environmental costs, giving comparable consideration to 

technologies that enhance energy supply and technologies that improve the efficiency of energy 

end uses; 

(3) to reduce the air, water, and other environmental impacts (including emissions of greenhouse 

gases) of energy production, distribution, transportation, and utilization, through the development 

of an environmentally sustainable energy system; 

(4) to maintain the technological competitiveness of the United States and stimulate economic 

growth through the development of advanced materials and technologies; 

(5) to foster international cooperation by developing international markets for domestically 

produced sustainable energy technologies, and by transferring environmentally sound, advanced 

energy systems and technologies to developing countries to promote sustainable development; 

(6) to consider the comparative environmental and public health impacts of the energy to be 

produced or saved by the specific activities; 

(7) to consider the obstacles inherent in private industry's development of new energy technologies 

and steps necessary for establishing or maintaining technological leadership in the area of energy 

and energy efficiency resource technologies; and 

(8) to consider the contribution of a given activity to fundamental scientific knowledge. 

Subtitle A--Oil and Gas Supply Enhancement

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SEC. 2011. ENHANCED OIL RECOVERY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on technologies to increase the recoverability of domestic oil 

resources to-- 

(1) improve reservoir characterization; 

(2) improve analysis and field verification; 

(3) field test and demonstrate enhanced oil recovery processes, including advanced processes, in 

reservoirs the Secretary considers to be of high priority, ranked primarily on the basis of oil 

recovery potential and risk of abandonment; 

(4) transfer proven recovery technologies to producers and operators of wells, including stripper 

wells, that would otherwise be likely to be abandoned in the near term due to declining production;

(5) improve enhanced oil recovery process technology for more economic and efficient oil 

production; 

(6) identify and develop new recovery technologies; 

(7) study reservoir properties and how they affect oil recovery from porous media; 

(8) improve techniques for meeting environmental requirements; 

(9) improve data bases of reservoir and environmental conditions; and 

(10) lower lifting costs on stripper wells by utilizing advanced renewable energy technologies such 

as small wind turbines and others. 

(b) PROGRAM GOALS- 

(1) NEAR-TERM PRIORITIES- The near-term priorities of the program include preserving access

to high potential reservoirs, identifying available technologies that can extend the lifetime of wells 

and of stripper well property, and developing environmental field operations for waste disposal 

and injection practices. 

(2) MID-TERM PRIORITIES- The mid-term priorities of the program include developing and 

testing identified but unproven technologies, and transferring those technologies for widespread 

use. 

(3) LONG-TERM PRIORITIES- The long-term priorities of the program include developing 

advanced techniques to recover oil not recoverable by other techniques. 

(c) ACCELERATED PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the 

Secretary shall prepare and submit to the Congress a plan for carrying out under this section the 

accelerated field testing of technologies to achieve the priorities stated in subsection (b). In preparing the 

plan, the Secretary shall consult with appropriate representatives of industry, institutions of higher 

education, Federal agencies, including national laboratories, and professional and technical societies, and 

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with the Advisory Board established under section 2302. 

(d) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

(e) CONSULTATION- In carrying out the provisions of this section, the Secretary shall consult 

representatives of the oil and gas industry with respect to innovative research and development proposals 

to improve oil and gas recovery and shall consider relevant technical data from industry and other 

research and information centers and institutes. 

(f) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section, including advanced extraction and process technology, 

$57,250,000 for fiscal year 1993 and $70,000,000 for fiscal year 1994. 

SEC. 2012. OIL SHALE. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on oil shale extraction and conversion, including research and 

development on both eastern and western shales, as provided in this section. 

(b) PROGRAM GOALS- The goals of the program established under this section include-- 

(1) supporting the development of economically competitive and environmentally acceptable 

technologies to produce domestic supplies of liquid fuels from oil shale; 

(2) increasing knowledge of environmentally acceptable oil shale waste disposal technologies and 

practices; 

(3) increasing knowledge of the chemistry and kinetics of oil shale retorting; 

(4) increasing understanding of engineering issues concerning the design and scale-up of oil shale 

extraction and conversion technologies; 

(5) improving techniques for oil shale mining systems; and 

(6) providing for cooperation with universities and other private sector entities. 

(c) EASTERN OIL SHALE PROGRAM- (1) As part of the program authorized by this section, the 

Secretary shall carry out a program on oil shale that includes applied research, in cooperation with 

universities and the private sector, on eastern oil shale that may have the potential to decrease United 

States dependence on energy imports. 

(2) As part of the program authorized by this subsection, the Secretary shall consider the potential 

benefits of including in that program applied research carried out in cooperation with universities and 

other private sector entities that are, as of the date of enactment of this Act, engaged in research on 

eastern oil shale retorting and associated processes. 

(3) The program carried out under this subsection shall be cost-shared with universities and the private 

sector to the maximum extent possible. 

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(d) WESTERN OIL SHALE PROGRAM- As part of the program authorized by this section, the 

Secretary shall carry out a program on extracting oil from western oil shales that includes, if appropriate, 

establishment and utilization of at least one field testing center for the purpose of testing, evaluating, and 

developing improvements in oil shale technology at the field test level. In establishing such a center, the 

Secretary shall consider sites with existing oil shale mining and processing infrastructure and facilities. 

Sixty days prior to establishing any such field testing center, the Secretary shall submit a report to 

Congress on the center to be established. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $5,250,000 for fiscal year 1993 and $6,000,000 for fiscal year 

1994. 

SEC. 2013. NATURAL GAS SUPPLY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, to increase the recoverable natural gas resource base including, but 

not limited to-- 

(1) more intensive recovery of natural gas from discovered conventional resources; 

(2) the extraction of natural gas from tight gas sands and devonian shales or other unconventional 

sources; 

(3) surface gasification of coal; and 

(4) recovery of methane from biofuels including municipal solid waste. 

(b) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

(c) COFIRING OF NATURAL GAS AND COAL- 

(1) PROGRAM- The Secretary shall establish and carry out a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on cofiring natural gas with coal in utility and large industrial 

boilers in order to determine optimal natural gas injection levels for both environmental and 

operational benefits. 

(2) FINANCIAL ASSISTANCE- The Secretary shall enter into agreements with, and provide 

financial assistance to, appropriate parties for application of cofiring technologies to boilers to 

demonstrate this technology. 

(3) REPORT TO CONGRESS- The Secretary shall, before December 31, 1995, submit to the 

Congress a report on the progress made in carrying out this subsection. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section and sections 2014 and 2015, $29,745,000 for fiscal year 1993 and 

$45,000,000 for fiscal year 1994. 

SEC. 2014. NATURAL GAS END-USE TECHNOLOGIES.

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The Secretary shall carry out a 5-year program, in accordance with sections 3001 and 3002 of this Act, 

on new and advanced natural gas utilization technologies including, but not limited to-- 

(1) stationary source emissions control and efficiency improvements including combustion 

systems, industrial processes, cogeneration, and waste fuels; and 

(2) natural gas storage including increased deliverability from existing gas storage facilities and 

new capabilities for storage near demand centers, and on-site storage at major energy consuming 

facilities. 

SEC. 2015. MIDCONTINENT ENERGY RESEARCH CENTER. 

(a) FINDING- Congress finds that petroleum resources in the midcontinent region of the United States 

are very large but are being prematurely abandoned. 

(b) PURPOSES- The purposes of this section are to-- 

(1) improve the efficiency of petroleum recovery; 

(2) increase ultimate petroleum recovery; and 

(3) delay the abandonment of resources. 

(c) ESTABLISHMENT- The Secretary may establish the Midcontinent Energy Research Center 

(referred to in this section as the `Center') to-- 

(1) conduct research in petroleum geology and engineering focused on improving the recovery of 

petroleum from existing fields and established plays in the upper midcontinent region of the 

United States; and 

(2) ensure that the results of the research described in paragraph (1) are transferred to users. 

(d) RESEARCH- 

(1) IN GENERAL- In conducting research under this section, the Center shall, to the extent 

practicable, cooperate with agencies of the Federal Government, the States in the midcontinent 

region of the United States, and the affected industry. 

(2) PROGRAMS- Research programs conducted by the Center may include-- 

(A) data base development and transfer of technology; 

(B) reservoir management; 

(C) reservoir characterization; 

(D) advanced recovery methods; and 

(E) development of new technology.

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Subtitle B--Oil and Gas Demand Reduction and Substitution 

SEC. 2021. GENERAL TRANSPORTATION. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on cost effective technologies to reduce the demand for oil in the 

transportation sector for all motor vehicles, including existing vehicles, through increased energy 

efficiency and the use of alternative fuels. Such program shall include a broad range of technological 

approaches, and shall include field demonstrations of sufficient scale and number in operating 

environments to prove technical and economic viability to meet the goals stated in section 2001. Such 

program shall include the activities required under sections 2022 through 2027, and ongoing activities of 

a similar nature at the Department of Energy. 

(b) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a 5-year program plan to guide activities under this subtitle. In 

preparing the program plan, the Secretary shall consult with appropriate representatives of industry, 

utilities, institutions of higher education, Federal agencies, including national laboratories, and 

professional and technical societies. 

(c) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

(d) DEFINITION- For purposes of this subtitle, the term `alternative fuels' includes natural gas, liquefied 

petroleum gas, hydrogen, fuels other than alcohol that are derived from biological materials, and any fuel 

the content of which is at least 85 percent by volume methanol, ethanol, or other alcohol. 

(e) AUTHORIZATION OF APPROPRIATIONS- (1) There are authorized to be appropriated to the 

Secretary for carrying out this subtitle, including all transportation sector energy conservation research 

and development (other than activities under section 2025) and all transportation sector biofuels energy 

systems under solar energy, $119,144,000 for fiscal year 1993 and $160,000,000 for fiscal year 1994. 

(2) There are authorized to be appropriated to the Secretary for carrying out section 2025-- 

(A) $60,300,000 for fiscal year 1993; 

(B) $75,000,000 for fiscal year 1994; 

(C) $80,000,000 for fiscal year 1995; 

(D) $80,000,000 for fiscal year 1996; 

(E) $90,000,000 for fiscal year 1997; and 

(F) $100,000,000 for fiscal year 1998. 

SEC. 2022. ADVANCED AUTOMOTIVE FUEL ECONOMY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a program, in accordance with sections 3001 

and 3002 of this Act, to supplement ongoing research activities of a similar nature at the Department of 

Energy, to accelerate the near-term and mid-term development of advanced technologies to improve the 

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fuel economy of light-duty passenger vehicles powered by a piston engine, and hybrid vehicles powered 

by a combination of piston engine and electric motor. 

(b) PROGRAM GOAL- The goal of the program established under subsection (a) shall be to stimulate 

the development of emerging technologies with the potential to achieve significant improvements in fuel 

economy while reducing emissions of air pollutants. 

(c) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section, making a special effort to involve small businesses 

in the program. 

SEC. 2023. ALTERNATIVE FUEL VEHICLE PROGRAM. 

(a) PROGRAM DIRECTION- The Secretary shall carry out a program, in accordance with sections 

3001 and 3002 of this Act, on techniques related to improving natural gas and other alternative fuel 

vehicle technology, including-- 

(1) fuel injection; 

(2) carburetion; 

(3) manifolding; 

(4) combustion; 

(5) power optimization; 

(6) efficiency; 

(7) lubricants and detergents; 

(8) engine durability; 

(9) ignition, including fuel additives to assist ignition; 

(10) multifuel engines; 

(11) emissions control, including catalysts; 

(12) novel gas compression concepts; 

(13) advanced storage systems; 

(14) advanced gaseous fueling technologies; and 

(15) the incorporation of advanced materials in these areas. 

(b) COOPERATIVE AGREEMENTS AND ASSISTANCE- The Secretary may enter into cooperative 

agreements with, and provide financial assistance to, public or private entities willing to provide 50 

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percent of the costs of a program to perform activities under subsection (a). 

(c) DEFINITIONS- For purposes of this section-- 

(1) the term `alternative fuel vehicle' means a motor vehicle that operates on alternative fuels; and 

(2) the term `motor vehicle' includes any automobile, truck, bus, van, or other on-road or off-road 

motor vehicle, including a boat. 

SEC. 2024. BIOFUELS USER FACILITY. 

(a) The Secretary shall establish a biofuels user facility to expedite industry adoption of biofuels 

technologies, including production of alcohol fuels from biomass. 

(b) The Secretary, through such universities and colleges as the Secretary determines are qualified, shall 

establish a program, in accordance with sections 3001 and 3002 of this Act, with respect to the 

production and use of diesel fuels from vegetable oils or animal fats. The program shall investigate-- 

(1) the economic feasibility of production of oilseed crops for biofuels purposes; and 

(2) the establishment of a mobile small-scale oilseed pressing and esterification unit and a 

stationary small-scale commercial oilseed pressing and esterification unit. 

SEC. 2025. ELECTRIC MOTOR VEHICLES AND ASSOCIATED EQUIPMENT RESEARCH AND 

DEVELOPMENT. 

(a) GENERAL- The Secretary shall conduct, pursuant to the Federal Nonnuclear Energy Research and 

Development Act of 1974 (42 U.S.C. 5901-5920), a research and development program on electric 

motor vehicles and associated equipment. Such program shall be conducted in cooperation with the 

electric utility industry, and automobile industry, battery manufacturers, and such other persons as the 

Secretary considers appropriate. 

(b) COMPREHENSIVE PLAN- (1) The Secretary shall prepare a comprehensive 5-year program plan 

for carrying out the purposes of this section. Such comprehensive plan shall be updated annually for a 

period of not less than 10 years after the date of enactment of this Act. 

(2) The comprehensive plan under paragraph (1) shall be prepared in consultation with the Administrator 

of the Environmental Protection Agency, the Secretary of Transportation, the Secretary of Commerce, 

the heads of other appropriate Federal agencies, representatives of the electric utility industry, electric 

motor vehicle manufacturers, the United States automobile industry, and such other persons as the 

Secretary considers appropriate. 

(3) The comprehensive plan shall include-- 

(A) a prioritization of research areas critical to the commercialization of electric motor vehicles, 

including advanced battery technology; 

(B) the program elements, management structure, and activities, including program 

responsibilities, of Federal agencies;

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(C) the program strategies, including technical milestones to be achieved toward specific goals 

during each fiscal year of the comprehensive plan for all major activities and projects; 

(D) the estimated costs of individual program elements, including estimated costs for each of the 

fiscal years of the comprehensive plan for each of the participating Federal agencies; 

(E) a description of the methods of technology transfer; 

(F) a proposal for participation by non-Federal entities in the implementation of the 

comprehensive plan; and 

(G) such other information as the Secretary considers appropriate. 

(4) Not later than 180 days after the date of enactment of this Act, the Secretary shall transmit the 

comprehensive plan to the Congress. Annual updates shall be submitted to the Congress. 

(c) COOPERATIVE AGREEMENTS- The Secretary, consistent with the comprehensive plan under 

subsection (b), may enter into cooperative agreements to conduct research and development projects 

with industry in such areas of technology development as-- 

(1) high efficiency electric power trains, including advanced motors, motor controllers, and hybrid 

power trains for electric motor vehicle range improvement; 

(2) light-weight structures for electric motor vehicle weight reduction; 

(3) advanced batteries with high energy density and power density, and improved range or 

recharging cycles for a given unit weight, for electric motor vehicle application; 

(4) hybrid power trains incorporating an electric motor and recyclable battery charged by an 

onboard liquid fuel engine, designed to significantly improve fuel economies while maintaining 

acceleration characteristics comparable to a conventionally fueled vehicle; 

(5) batteries and fuel cells for electric-hybrid vehicle application; 

(6) fuel cells and fuel cell systems for primary electric motor vehicle power sources; and 

(7) photovoltaics for use with electric motor vehicles. 

(d) SOLICITATION OF PROPOSALS- (1) Within one year after the date of enactment of this Act, the 

Secretary shall solicit proposals for cooperative agreements for research and development under 

subsection (c). 

(2) Thereafter, the Secretary may solicit additional proposals for cooperative agreements under 

subsection (c) if, in the judgment of the Secretary, such cooperative agreements could contribute to the 

development of electric motor vehicles and associated equipment. 

(e) COST-SHARING- (1) The Secretary shall require at least 50 percent of the costs directly and 

specifically related to any cooperative agreement under this section, other than a cooperative agreement 

under subsection (j), to be from non-Federal sources. Such share may be in the form of cash, personnel, 

services, equipment, and other resources.

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(2) The Secretary may reduce the amount of costs required to be provided by non-Federal sources under 

paragraph (1), if the Secretary determines that the reduction is necessary and appropriate-- 

(A) considering the technological risks involved in the project; and 

(B) in order to meet the objectives of this section. 

(f) DEPLOYMENT- (1) The Secretary shall conduct a program designed to accelerate deployment of 

advanced battery technologies for use with electric motor vehicles. 

(2) In carrying out the program authorized by this subsection, the Secretary shall-- 

(A) undertake an inventory and assessment of advanced battery technologies and electric motor 

vehicle technologies and the commercial capability of such technologies; and 

(B) develop a Federal industry information exchange program to improve the deployment or use of

such technologies, which may consist of workshops, publications, conferences, and a data base for 

use by the public and private sectors. 

(g) DOMESTIC PARTS MANUFACTURERS- In carrying out this section, the Secretary, in 

consultation with the Secretary of Commerce, shall issue regulations to ensure that the procurement 

practices of participating electric motor vehicle and associated equipment manufacturers do not 

discriminate against the United States manufacturers of vehicle parts. 

(h) HOLD HARMLESS- Nothing in this section shall be construed to alter, affect, modify, or change 

any activities or agreements initiated prior to the date of enactment of this Act with domestic motor 

vehicle manufacturers through joint venture or consortium agreements regarding batteries for electric 

motor vehicles. 

(i) CONSULTATION- The Secretary shall consult with the Administrator of the Environmental 

Protection Agency and the Secretary of Transportation in carrying out this section. 

(j) FUEL CELLS FOR TRANSPORTATION- (1) The Secretary shall develop and implement a 

comprehensive program of research, development, and demonstration of fuel cells and related systems 

for transportation applications through the establishment of one or more cooperative programs among 

industry, government, and research institutions to develop and demonstrate the use of fuel cells as the 

primary power source for private and mass transit vehicles and other mobile applications. 

(2) Research, development, and demonstration activities under this subsection shall be designed to 

incorporate one or more of the following priorities: 

(A) The potential for near-term to mid-term commercialization. 

(B) The ability of the systems to use a variety of renewable and nonfossil fuels. 

(C) Emission reduction and energy conservation potential. 

(D) The potential to utilize fuel cells and fuel cell systems developed under Department of Defense 

and National Aeronautics and Space Administration programs.

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(E) The potential to take maximum practical advantage of advances made in electric motor vehicle 

research, stationary source fuel cell research, and other research activities authorized by this title. 

(3)(A) Research, development, and demonstration projects selected by the Secretary under this 

subsection shall apply to-- 

(i) passenger vehicles; 

(ii) vans and utility vehicles; 

(iii) light rail systems and locomotives; 

(iv) trucks, including long-haul trucks, dump trucks, and garbage trucks; 

(v) passenger buses; 

(vi) non-chlorofluorocarbon mobile refrigeration systems; 

(vii) marine vessels, including recreational marine engines; or 

(viii) mobile engines and power generation, including recreational generators, and industrial and 

construction equipment. 

(B) The Secretary shall establish programs to undertake research, development, and demonstration 

activities for the applications listed in clauses (i) through (viii) of subparagraph (A) in each of fiscal 

years 1993, 1994, 1995, and 1996, based on the priorities established in paragraph (2), so that by the end 

of the period, research, development, and demonstration activities are under way for the applications 

under each such clause. The initiatives authorized and implemented pursuant to this subsection shall be 

in addition to any other fuel cell programs authorized in existing law. 

(k) DEFINITIONS- For purposes of this section-- 

(1) the term `advanced battery technology' means electrochemical storage devices and systems, 

including fuel cells, and associated technology necessary to charge, discharge, recharge, or 

regenerate such devices, for use as a source of power for an electric motor vehicle and any other 

associated equipment; 

(2) the term `associated equipment' means equipment necessary for the regeneration, refueling, or 

recharging of batteries or other forms of electric energy used to power an electric motor vehicle 

and, in the case of electric-hybrid vehicles, such term includes nonpetroleum-related equipment 

necessary for, and solely related to, the demonstration of such vehicles; 

(3) the term `electric motor vehicle' means a motor vehicle primarily powered by an electric motor 

that draws current from rechargeable storage batteries, fuel cells, photovoltaic arrays, or other 

sources of electric current and may include an electric-hybrid vehicle; and 

(4) the term `electric-hybrid vehicle' means vehicle primarily powered by an electric motor that 

draws current from rechargeable storage batteries, fuel cells, or other sources of electric current 

and also relies on a nonelectric source of power that also operates on or is capable of operating on 

a nonelectrical source of power. 

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SEC. 2026. RENEWABLE HYDROGEN ENERGY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on renewable hydrogen energy systems. Such program shall be 

conducted in accordance with the Spark M. Matsunaga Hydrogen Research, Development, and 

Demonstration Act of 1990 (Public Law 101-566), to supplement ongoing activities of a similar nature at 

the Department of Energy, including-- 

(1) at least one program to generate hydrogen from renewable energy sources; 

(2) at least one program to assess the feasibility of existing natural gas pipelines carrying hydrogen 

gas, including experimentation if needed, with a goal of determining those components of the 

natural gas distribution system that would have to be modified to carry-- 

(A) more than 20 percent hydrogen mixed with natural gas; and 

(B) pure hydrogen gas; 

(3) at least one program to develop a hydrogen storage system suitable for electric motor vehicles 

powered by fuel cells, with emphasis on-- 

(A) improved metal hydride hydrogen storage; 

(B) activated carbon-based hydrogen storage; 

(C) high pressure compressed hydrogen; or 

(D) other novel hydrogen storage techniques; 

(4) at least one program to develop a fuel cell suitable to power an electric motor vehicle; and 

(5) such other programs as the Secretary considers necessary to carry out this section. 

(b) PROPOSALS- Within 180 days after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

SEC. 2027. ADVANCED DIESEL EMISSIONS PROGRAM. 

(a) PROGRAM DIRECTION- The Secretary shall initiate a 5-year program, in accordance with sections 

3001 and 3002 of this Act, on diesel engine combustion and engine systems, related advanced materials, 

and fuels and lubricants to reduce emissions oxides of nitrogen and particulates. Activities conducted 

under this program shall supplement activities of a similar nature at the Department of Energy. Such 

program shall include field demonstrations of sufficient scale and number in operating environments to 

prove technical and economic viability to meet the goal stated in subsection (b). 

(b) PROGRAM GOAL- The goal of the program established under subsection (a) shall be to accelerate 

the ability of United States diesel manufacturers to meet current and future oxides of nitrogen and 

particulate emissions requirements. 

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(c) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary, in 

consultation with appropriate representatives of industry, institutions of higher education, Federal 

agencies, including national laboratories, and professional and technical societies, shall prepare and 

submit to the Congress a 5-year program plan to guide the activities under this section. Such plan shall 

be included as part of the plan required by section 2021(b). 

(d) SOLICITATION OF PROPOSALS- Within 1 year after the date of enactment of this Act, the 

Secretary shall solicit proposals for conducting activities consistent with the 5-year program plan. 

SEC. 2028. TELECOMMUTING STUDY. 

(a) STUDY- The Secretary, in consultation with the Secretary of Transportation, shall conduct a study of 

the potential costs and benefits to the energy and transportation sectors of telecommuting. The study 

shall include-- 

(1) an estimation of the amount and type of reduction of commuting by form of transportation type 

and numbers of commuters; 

(2) an estimation of the potential number of lives saved; 

(3) an estimation of the reduction in environmental pollution, in consultation with the 

Environmental Protection Agency; 

(4) an estimation of the amount and type of reduction of energy use and savings by form of 

transportation type; and 

(5) an estimation of the social impact of widespread use of telecommuting. 

(b) This study shall be completed no more than one hundred and eighty days after the date of enactment 

of this Act. A report, summarizing the results of the study, shall be transmitted to the United States 

House of Representatives and the Committee on Energy and Natural Resources of the United States 

Senate no more than sixty days after completion of this study. 

TITLE XXI--ENERGY AND ENVIRONMENT 

Subtitle A--Improved Energy Efficiency 

SEC. 2101. GENERAL IMPROVED ENERGY EFFICIENCY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on cost effective technologies to improve energy efficiency and 

increase the use of renewable energy in the buildings, industrial, and utility sectors. Such program shall 

include a broad range of technological approaches, and shall include field demonstrations of sufficient 

scale and number to prove technical and economic viability to meet the goals stated in section 2001. 

Such program shall include the activities required under sections 2102, 2103, 2104, 2105, 2106, 2107, 

and 2108 and ongoing activities of a similar nature at the Department of Energy. Such program shall also 

include the activities conducted pursuant to the Steel and Aluminum Energy Conservation and 

Technology Competitiveness Act of 1988 (Public Law 100-680) and the Department of Energy Metal 

Casting Competitiveness Research Act of 1990 (Public Law 101-425).

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(b) PROGRAM GOALS- The goals of the program established under subsection (a) shall include-- 

(1) in the buildings sector-- 

(A) to accelerate the development of technologies that will increase energy efficiency; 

(B) to increase the use of renewable energy; and 

(C) to reduce environmental impacts; 

(2) in the industrial sector-- 

(A) to accelerate the development of technologies that will increase energy efficiency in 

order to improve productivity; 

(B) to increase the use of renewable energy; and 

(C) to reduce environmental impacts; and 

(3) in the utility sector-- 

(A) to accelerate the development of technologies that will increase energy efficiency; and 

(B) to increase the use of integrated resource planning. 

(c) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a 5-year program plan to guide activities under this subtitle. In 

preparing the program plan, the Secretary shall consult with appropriate representatives of industry, 

utilities, institutions of higher education, Federal agencies, including national laboratories, and 

professional and technical societies. 

(d) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this subtitle, including all building, industry, and utility sectors energy 

conservation research and development, and inventions and innovation under energy conservation 

technical and financial assistance, $178,250,000 for fiscal year 1993 and $275,000,000 for fiscal year 

1994. 

SEC. 2102. NATURAL GAS AND ELECTRIC HEATING AND COOLING TECHNOLOGIES. 

(a) PROGRAM DIRECTION- (1) The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on energy efficient natural gas and electric heating and cooling 

technologies for residential and commercial buildings. 

(2) The natural gas heating and cooling program shall include activities on-- 

(A) thermally activated heat pumps, including absorption heat pumps and engine-driven heat 

pumps; and

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(B) other advanced natural gas technologies, including fuel cells for residential and commercial 

applications. 

(3) The electric heating and cooling program shall focus on-- 

(A) advanced heat pumps; 

(B) thermal storage; and 

(C) advanced electric HVAC (heating, ventilating, and air conditioning) and refrigeration systems 

that utilize replacements for chlorofluorocarbons. 

(b) PROPOSALS- Within 180 days after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

SEC. 2103. PULP AND PAPER. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on advanced pulp and paper technologies. Such program shall 

include activities on energy generation technologies, boilers, combustion processes, pulping processes 

(excluding de-inking), chemical recovery, causticizing, source reduction processes, and other related 

technologies that can improve the energy efficiency of, and reduce the adverse environmental impacts of, 

pulp and papermaking operations. This section does not authorize projects involving the combustion of 

waste paper, other than gasification. 

(b) PROPOSALS- Within 180 days after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

SEC. 2104. ADVANCED BUILDINGS FOR 2005. 

(a) PROGRAM DIRECTION- The Secretary shall initiate a 5-year program, in accordance with sections 

3001 and 3002 of this Act, to increase building energy efficiency, while maintaining affordability, by the 

year 2005. Such program shall include activities on-- 

(1) building design, design methods, and construction techniques; 

(2) building materials, including recycled materials, and components; 

(3) on-site energy supply conversion systems such as photovoltaics; 

(4) automated energy management systems; 

(5) methods of evaluating performance; and 

(6) insulation products manufactured with nonozone depleting materials. 

(b) PROPOSALS- 

(1) SOLICITATION- Within 1 year after the date of enactment of this Act, the Secretary shall 

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solicit proposals for conducting activities under this section. 

(2) CONTENTS OF PROPOSALS- Proposals submitted under this subsection shall include and be 

judged upon-- 

(A) evidence of knowledge of current building practices in the United States and in other 

countries; 

(B) an explanation of how the proposal will encourage the commercialization of the 

technologies resulting from activities in subsection (a); 

(C) evidence of consideration of collaboration with Department of Energy national 

laboratories; 

(D) evidence of collaboration with relevant industry or other groups or organizations; and 

(E) a demonstration of the ability of the proposers to undertake and complete the project 

proposed. 

SEC. 2105. ELECTRIC DRIVES. 

(a) PROGRAM- The Secretary shall conduct a 5-year program, in accordance with sections 3001 and 

3002 of this Act, to increase the efficiency of electric drive technologies, including adjustable speed 

drives, high speed motors, and high efficiency motors. 

(b) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for projects under this section. 

SEC. 2106. STEEL, ALUMINUM, AND METAL RESEARCH. 

(a) STEEL AMENDMENTS- The Steel and Aluminum Energy Conservation and Technology 

Competitiveness Act of 1988 is amended-- 

(1) in section 4(b)(5), by striking `Industrial Programs' and inserting in lieu thereof `Industrial 

Technologies'; 

(2) in section 8, by inserting at the end the following new sentence: `The reports submitted at the 

close of fiscal years 1993, 1995, and 1997 shall also contain a complete summary of activities 

under the management plan and the research plan from the first year of their operation, along with 

an analysis of the extent to which they have succeeded in accomplishing the purposes of this Act.'; 

(3) in section 9(a)(1), by striking `and $25,000,000 for fiscal year 1991' and inserting in lieu 

thereof `$25,000,000 for fiscal year 1991, $17,968,000 for fiscal year 1992, and $18,091,000 for 

each of the fiscal years 1993 through 1997, to be derived from sums authorized under section 2101

(e) of the Energy Policy Act of 1992'; 

(4) in section 9(b), by striking `and 1991' and inserting in lieu thereof `1991, 1992, 1993, 1994, 

1995, 1996, and 1997, to be derived from sums otherwise authorized to be appropriated to the 

Institute'; and

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(5) in section 11(a), by striking `or fiscal year 1991' both places it appears and inserting in lieu 

thereof `fiscal year 1991, fiscal year 1992, fiscal year 1993, fiscal year 1994, fiscal year 1995, 

fiscal year 1996, and fiscal year 1997'. 

(b) METAL CASTING AMENDMENT- Section 8 of the Department of Energy Metal Casting 

Competitiveness Research Act of 1990 (Public Law 101-425) is amended by striking `and 1993' and 

inserting in lieu thereof `1993, 1994, 1995, 1996, and 1997, to be derived from such sums as are 

otherwise authorized under section 2101(e) of the Energy Policy Act of 1992'. 

SEC. 2107. IMPROVING EFFICIENCY IN ENERGY-INTENSIVE INDUSTRIES. 

(a) SECRETARIAL ACTION- The Secretary, in accordance with sections 3001 and 3002 of this Act, 

shall-- 

(1) pursue a research, development, demonstration and commercial application program intended 

to improve energy efficiency and productivity in energy-intensive industries and industrial 

processes; and 

(2) undertake joint ventures to encourage the commercialization of technologies developed under 

paragraph (1). 

(b) JOINT VENTURES- (1) The Secretary shall-- 

(A) conduct a competitive solicitation for proposals from private firms and investors for such joint 

ventures under subsection (a)(2); and 

(B) provide financial assistance to at least five such joint ventures. 

(2) The purpose of the joint ventures shall be to design, test, and demonstrate changes to industrial 

processes that will result in improved energy efficiency and productivity. The joint ventures may also 

demonstrate other improvements of benefit to such industries so long as demonstration of energy 

efficiency improvements is the principal objective of the joint venture. 

(3) In evaluating proposals for financial assistance and joint ventures under this section, the Secretary 

shall consider-- 

(A) whether the activities conducted under this section improve the quality and energy efficiency 

of industries or industrial processes; 

(B) the regional distribution of the energy-intensive industries and industrial processes; and 

(C) whether the proposed joint venture project would be located in the region which has the 

energy-intensive industry and industrial processes that would benefit from the project. 

SEC. 2108. ENERGY EFFICIENT ENVIRONMENTAL PROGRAM. 

(a) PROGRAM DIRECTION- The Secretary, in consultation with the Administrator of the 

Environmental Protection Agency, is authorized to continue to carry out a 5-year program to improve the 

energy efficiency and cost effectiveness of pollution prevention technologies and processes, including 

source reduction and waste minimization technologies and processes. The purposes of this section shall 

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be to-- 

(1) apply a systems approach to minimizing adverse environmental effects of industrial production 

in the most cost effective and energy efficient manner; and 

(2) incorporate consideration of the entire materials and energy cycle with the goal of minimizing 

adverse environmental impacts. 

(b) IDENTIFICATION OF OPPORTUNITIES- Within 9 months after the date of enactment of this Act, 

the Secretary, in consultation with the Administrator of the Environmental Protection Agency, shall 

identify opportunities for the demonstration of energy efficient pollution prevention technologies and 

processes. 

(c) REPORT- Within 1 year after the date of enactment of this Act, the Secretary shall submit a report to 

Congress evaluating the opportunities identified under subsection (b). Such report shall include-- 

(1) an assessment of the technologies available to increase productivity and simultaneously reduce 

the consumption of energy and material resources and the production of wastes; 

(2) an assessment of the current use of such technologies by industry in the United States; 

(3) the status of any such technologies currently being developed, together with projected 

schedules of their commercial availability; 

(4) the energy savings resulting from the use of such technologies; 

(5) the environmental benefits of such technologies; 

(6) the costs of such technologies; 

(7) an evaluation of any existing Federal or State regulatory disincentives for the employment of 

such technologies; and 

(8) an evaluation of any other barriers to the use of such technologies. 

In preparing the report required by this subsection, the Secretary shall consult with the Administrator of 

the Environmental Protection Agency, any other Federal, State, or local official the Secretary considers 

necessary, representatives of appropriate industries, members of organizations formed to further the 

goals of environmental protection or energy efficiency, and other appropriate interested members of the 

public, as determined by the Secretary. 

(d) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary, in consultation 

with the Administrator of the Environmental Protection Agency, shall solicit proposals for activities 

under this section. Proposals selected under this subsection shall demonstrate-- 

(1) technical viability and cost effectiveness; and 

(2) procedures for technology transfer and information outreach during and after completion of the 

project. 

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Subtitle B--Electricity Generation and Use 

SEC. 2111. RENEWABLE ENERGY. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a comprehensive 5-year program, in 

accordance with sections 3001 and 3002 of this Act, to provide cost-effective options for the generation 

of electricity from renewable energy sources for grid and nongrid application, including field 

demonstrations of sufficient scale and number in operating environments to prove technical and 

economic feasibility for providing cost effective generation and for meeting the goal stated in section 

2001(3) and section 1602(a)(4). 

(b) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a 5-year program plan to guide the activities under this section. In 

preparing the program plan, the Secretary shall consult with appropriate representatives of industry, 

institutions of higher education, Federal agencies, including national laboratories, and professional and 

technical societies. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section, including all solar energy programs (other than activities under 

section 2021), geothermal systems, electric energy systems, and energy storage systems, $208,975,000 

for fiscal year 1993 and $275,000,000 for fiscal year 1994. 

SEC. 2112. HIGH EFFICIENCY HEAT ENGINES. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, to improve the efficiency of heat engines. Such program shall-- 

(1) include field demonstrations of sufficient scale and number so as to demonstrate technical and 

economic feasibility; 

(2) incorporate materials that increase engine efficiency; and 

(3) cover advanced engine designs for electric and industrial power generation for a range of 

small-, mid-, and large-scale applications, including-- 

(A) mechanically recuperated gas turbines; 

(B) intercooled gas turbines with steam injection or recuperation; 

(C) gas turbines utilizing reformed fuels or hydrogen; and 

(D) high efficiency, simple cycle gas turbines. 

(b) PROGRAM GOAL- The goal of the program established under subsection (a) shall be to develop 

heat engines that can achieve over 50 percent efficiency in the mid-term. 

(c) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a 5-year program plan, to be included in the plan required under 

section 2101(c), to guide the activities under this section. In preparing the program plan, the Secretary 

shall consult with appropriate representatives of industry, institutions of higher education, Federal 

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agencies, including the Environmental Protection Agency and national laboratories, and professional and 

technical societies. 

(d) PROPOSALS- Within 1 year after the date of enactment of this Act, the Secretary shall solicit 

proposals for conducting activities under this section. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section such sums as may be necessary to be derived from sums 

authorized under section 2101(e). 

SEC. 2113. CIVILIAN NUCLEAR WASTE. 

(a) STUDY- The Secretary shall conduct a study of the potential for minimizing the volume and toxic 

lifetime of nuclear waste, including an analysis of the viability of existing technologies and an 

assessment of the extent of research and development required for new technologies. 

(b) PROGRAM- Based on the results of the study required under subsection (a), the Secretary shall 

prepare and submit to Congress a 5-year program plan for carrying out a program of research and 

development on new technologies for minimizing the volume and toxic lifetime of, and thereby 

mitigating hazards associated with, nuclear waste. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $4,700,000 for fiscal year 1993 and such sums as may be 

necessary for fiscal year 1994. 

SEC. 2114. FUSION ENERGY. 

(a) PROGRAM- The Secretary shall conduct a fusion energy 5-year program, in accordance with 

sections 3001 and 3002 of this Act, that by the year 2010 will result in a technology demonstration 

which verifies the practicability of commercial electric power production. 

(b) PROGRAM GOALS- The goals of the program established under subsection (a) shall include-- 

(1) a broad based fusion energy program; 

(2) United States participation in the Engineering Design Activity of the International 

Thermonuclear Experimental Reactor (ITER) program and in the related research and technology 

development efforts; 

(3) the development of technology for fusion power and industrial participation in the 

development of such technology; 

(4) the design and construction of a major new machine for fusion research and technology 

development consistent with paragraphs (2) and (3); and 

(5) research and development for Inertial Confinement Fusion Energy and development of a 

Heavy Ion Inertial Confinement Fusion experiment. 

(c) MANAGEMENT PLAN- (1) Within 180 days after the date of enactment of this Act, the Secretary 

shall prepare a comprehensive management plan for the fusion energy program. The plan shall include 

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specific program objectives, milestones and schedules for technology development, and cost estimates 

and program management resource requirements. 

(2) The plan shall also include a description of-- 

(A) United States participation in the Engineering Design Activity of ITER, including industrial 

participation; 

(B) potential United States participation in the construction and operation of an ITER facility; and 

(C) the requirements needed to build and test an inertial fusion energy reactor for the purpose of 

power production. 

(3) As part of the plan required under paragraph (1), the Secretary shall evaluate the status of 

international fusion programs and evaluate whether the Federal Government should initiate efforts to 

strengthen existing international cooperative agreements in fusion energy or enter into new cooperative 

agreements to accomplish the purposes of this section. 

(4) The plan shall also evaluate the extent to which university or private sector participation is 

appropriate or necessary in order to carry out the purposes of this section. 

(5) Within 1 year after the date of enactment of this Act, and every 2 years thereafter, the Secretary shall 

issue a report describing the progress made in meeting the program objectives, milestones, and schedules 

established in the management plan. Each such report shall also describe the organization of the 

program, the personnel assigned and funds committed to the program, and expenditures made in carrying 

out the program objectives. The report shall be submitted with the plan required under section 2304. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $339,710,000 for fiscal year 1993 and $380,000,000 for fiscal year 

1994. 

SEC. 2115. FUEL CELLS. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a 5-year program, in accordance with 

sections 3001 and 3002 of this Act, on efficient and environmentally benign power generation using fuel 

cells. The program may include activities on molten carbonate, solid oxide, including tubular, 

monolithic, and planar technologies, and advanced concepts. 

(b) PROGRAM GOAL- The goal of the program established under subsection (a) is the development of 

cost-effective, efficient, and environmentally benign fuel cell systems which will operate on fossil fuels 

in multiple end use sectors. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $51,555,000 for fiscal year 1993 and $56,000,000 for fiscal year 

1994. 

SEC. 2116. ENVIRONMENTAL RESTORATION AND WASTE MANAGEMENT PROGRAM. 

(a) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for fiscal year 1993 $70,000,000 for the Fast Flux Test Facility to maintain the operational 

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status of the reactor, such sums to be derived from amounts appropriated to the Secretary for the 

environmental restoration and waste management program. 

(b) LONG-TERM MISSIONS- The Secretary shall aggressively pursue the development and 

implementation of long-term missions for the Fast Flux Test Facility. Within 6 months after the date of 

enactment of this Act, the Secretary shall submit to the Congress a report on the progress made in 

carrying out this subsection. 

SEC. 2117. HIGH-TEMPERATURE SUPERCONDUCTIVITY PROGRAM. 

(a) PROGRAM- The Secretary shall carry out a 5-year program, in accordance with sections 3001 and 

3002 of this Act, on high-temperature superconducting electric power equipment technologies. Elements 

of the program shall include, but are not limited to-- 

(1) activities that address the development of high-temperature superconducting materials that 

have increased electrical current capacity, which shall be the emphasis of the program for the nearterm; 

(2) the development of prototypes, where appropriate, of the major elements of a superconducting 

electric power system such as motors, generators, transmission lines, transformers, and magnetic 

energy storage systems; 

(3) activities that will improve the efficiency of materials performance of higher temperatures and 

at all magnetic field orientations; 

(4) development of prototypes based on high-temperature superconducting wire, that operate at the 

highest temperature possible, and refrigeration systems using cryogenics such as nitrogen; 

(5) activities that will assist the private sector with designs for more efficient electric power 

generation and delivery systems which are cost competitive with conventional energy systems; and

(6) development of prototypes that have application in both the commercial and defense sectors. 

The Secretary is also encouraged to expedite government, laboratory, industry, and university 

collaborative agreements under existing mechanisms at the Department of Energy in coordination with 

other Federal agencies. 

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section $21,900,000 for fiscal year 1993 and such sums as may be 

necessary for subsequent fiscal years, to be derived from sums authorized under section 2111(c). 

SEC. 2118. ELECTRIC AND MAGNETIC FIELDS RESEARCH AND PUBLIC INFORMATION 

DISSEMINATION PROGRAM. 

(a) PROGRAM- The Secretary shall, in accordance with this section (including the agenda developed 

under subsection (d)(1)(A)) and within 2 months after the date of the enactment of this Act, establish a 

comprehensive program to-- 

(1) determine whether or not exposure to electric and magnetic fields produced by the generation, 

transmission, and use of electric energy affects human health;

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(2) carry out research, development, and demonstration with respect to technologies to mitigate 

any adverse human health effects; and 

(3) provide for dissemination of information described in subsection (b)(1) to the public. 

(b) CONTENTS- The program shall provide for-- 

(1) collection, compilation, publication, and dissemination of scientifically valid information on-- 

(A) possible human health effects of electric and magnetic fields; 

(B) the types and extent of human exposure to electric and magnetic fields in various 

occupational and residential settings; 

(C) technologies to measure and characterize electric and magnetic fields; and 

(D) methods to assess and manage exposure to electric and magnetic fields; 

(2)(A) research on mechanisms by which electric and magnetic fields interact with biological 

systems; and 

(B) epidemiological research on the possible human health effects of electric and magnetic fields; 

and 

(3) research, development, and demonstration with respect to-- 

(A) technologies to improve the measurement and characterization of electric and magnetic 

fields; and 

(B) techniques to assess and manage exposure to electric and magnetic fields. 

(c) ROLE OF THE DIRECTOR- 

(1) ROLE OF THE DIRECTOR- The Secretary of Health and Human Services, acting through the 

Director, shall have sole responsibility under the program for research on possible human health 

effects of electric and magnetic fields. The Director may delegate this responsibility to the extent 

the Director determines appropriate. 

(2) AGREEMENT- Within 6 months after the date of the enactment of this Act, the Secretary shall 

enter into an agreement with the Secretary of Health and Human Services to carry out, through the 

Director, the information activities under subsection (b)(1)(A) and the research under subsection 

(b)(2). 

(3) ACTIONS OF THE DIRECTOR- The actions of the Director in carrying out research and 

information responsibilities under this section shall not be subject to approval by the Secretary. 

(4) TRANSFER OF FUNDS- The Secretary is authorized, subject to appropriations Acts, to 

transfer funds to the Director to carry out the Director's responsibilities under paragraph (2). 

(5) REPORT- The Director shall report, by June 1, 1995, and by March 31, 1997, and as 

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appropriate, to the Interagency Committee established under subsection (d) and to Congress the 

findings and conclusions of the Director on the extent to which exposure to electric and magnetic 

fields produced by the generation, transmission, or use of electric energy affects human health. 

(d) INTERAGENCY COMMITTEE- 

(1) The President shall, within 2 months after the date of the enactment of this Act, establish the 

Electric and Magnetic Fields Interagency Committee to-- 

(A) develop within 8 months after the date of the enactment of this Act a comprehensive 

agenda for conducting research, development, and demonstration under the program, with 

particular emphasis on electric and magnetic fields of the 60 hertz frequency; 

(B) develop recommendations, within 8 months after the date of the enactment of this Act, 

for guidelines for the coordination of activities of Federal agencies engaged in research on 

human health effects of electric and magnetic fields that ensure that such research advances 

the agenda under subparagraph (A) and is not unnecessarily duplicative of other research 

activities; 

(C) develop recommendations, within 8 months after the date of the enactment of this Act, 

for mechanisms for communication of the results of the program to the public, including 

recommendations on the scope and nature of the information to be disseminated; and 

(D) monitor, review and periodically evaluate the program. 

(2)(A) The Interagency Committee shall be composed of 9 members with 1 member to be 

appointed from each of the following: 

(i) The Department of Energy. 

(ii) The National Institute of Environmental Health Sciences. 

(iii) The Environmental Protection Agency. 

(iv) The Department of Defense. 

(v) The Occupational Safety and Health Administration. 

(vi) The National Institute of Standards and Technology. 

(vii) The Department of Transportation. 

(viii) The Rural Electrification Administration. 

(ix) The Federal Energy Regulatory Commission. 

(B) The Interagency Committee shall elect a chairperson from among its members who shall be 

responsible for ensuring that the duties of the Interagency Committee are carried out. 

(C) Agencies that have members on the Interagency Committee shall provide appropriate staff to 

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carry out the duties of the Interagency Committee. 

(e) ADVISORY COMMITTEE- 

(1) Not later than 2 months after the date of the enactment of this Act, the Secretary of Health and 

Human Services and the Secretary shall establish the National Electric and Magnetic Fields 

Advisory Committee in accordance with the Federal Advisory Committee Act and this section. 

(2) The Advisory Committee shall make recommendations to the Interagency Committee with 

respect to the duties of the Interagency Committee under subsection (d)(1) and advise the 

Secretary and the Director with respect to the design and implementation of the program, 

including preparation of solicitations for proposals to conduct research under the program. 

(3) The Advisory Committee shall be composed of 10 members, chosen from among experts in 

possible human health effects of electric and magnetic fields, experts in the measurement and 

characterization of electric and magnetic fields, experts in the assessment and management of 

electric and magnetic fields, State regulatory agencies, State health agencies, electric utilities, 

electric equipment manufacturers, labor unions and the public. Five members shall be chosen by 

the Secretary of Health and Human Services in consultation with the Director, and 5 members 

shall be chosen by the Secretary. 

(4) The Advisory Committee shall elect a chairperson from among its members who shall be 

responsible for ensuring that the duties of the Advisory Committee are carried out. 

(5) The Advisory Committee shall terminate not later than December 31, 1997. 

(f) FINANCIAL ASSISTANCE- 

(1) The Secretary and the Director may provide financial assistance and enter into contracts to 

conduct activities under the program. 

(2) The Secretary shall solicit contributions from non-Federal sources to offset at least 50 percent 

of the total funding for all activities under the program. The Secretary shall adopt procedures, 

including a mechanism for collecting contributions, that ensures that no contributor of non-Federal 

funds may influence the program. 

(3) The Secretary may not obligate funds under this section in any fiscal year unless funds 

received from non-Federal sources under paragraph (2) are available to offset at least 50 percent of 

the appropriations made under subsection (j) for such fiscal year. 

(4) SOLICITATION AND SELECTION OF PROPOSALS- 

(A) IN GENERAL- Within 15 months after the date of the enactment of this Act, and as 

often thereafter as appropriate, the Secretary and the Director shall, in consultation with the 

Interagency Committee, solicit and select proposals to conduct activities under the program. 

(B) CONSULTATION WITH ADVISORY COMMITTEE- In preparing solicitations for 

proposals to conduct activities, the Secretary and the Director shall consult with the 

Advisory Committee. 

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(C) PEER REVIEW PANELS- Before a proposal to conduct activities under the program 

may be selected by the Secretary or the Director, such proposal must be submitted to, and 

evaluated by, at least one scientific and technical peer review panel. 

(g) REPORTS- 

(1) REPORT UPON COMPLETION OF ACTIVITY- Any person who conducts activities under 

the program shall, upon completion of the activity, submit to the National Academy of Sciences, 

the Interagency Committee, and the Advisory Committee a report summarizing the activities and 

results thereof. 

(2) REPORT TO INTERAGENCY COMMITTEE AND ADVISORY COMMITTEE- The 

Secretary shall enter into appropriate arrangements with the National Academy of Sciences under 

which the Academy shall periodically submit to the Interagency Committee and the Advisory 

Committee a report that evaluates the research activities under the program. The report shall 

include recommendations to promote the effective transfer of information derived from such 

research projects, including the transfer to representatives of State regulatory agencies, State health 

agencies, electric utilities, electrical equipment manufacturers, labor unions, and the public. The 

Secretary shall be responsible for expenses incurred by the Academy in connection with the 

preparation of such reports. 

(3) REPORT TO CONGRESS- The Interagency Committee, in consultation with the Advisory 

Committee, shall submit to the Secretary and the Congress-- 

(A) not later than December 31, 1995, a report summarizing the progress of the research 

program established under this subsection; and 

(B) not later than September 30, 1997, a final report stating the Committee's findings and 

conclusions on the effects, if any, of electric and magnetic fields on human health and 

remedial actions, if any, that may be needed to minimize any such health effects. 

(h) CONFLICTS OF INTEREST- The Secretary and the Director shall include conflict of interest 

provisions in any grant or other funding provided, or contract entered into, under the research program 

established under this section including provisions-- 

(1) that require any person conducting a project under such program to disclose any other source 

of funding received by the person to conduct other related projects, including funding received 

from consulting on issues relating to electric and magnetic fields; and 

(2) that prohibit a person who has been awarded a grant or contract under this program from 

receiving compensation beyond expenses for testifying in a court of law as an expert on the 

specific research the person is conducting under such grant or contract. 

(i) DEFINITIONS- For purposes of this section: 

(1) The term `Advisory Committee' means the National Electric and Magnetic Fields Advisory 

Committee established under subsection (e). 

(2) The term `Interagency Committee' means the Electric and Magnetic Fields Interagency 

Committee established under subsection (d).

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(3) The term `Director' means the Director of the National Institute of Environmental Health 

Sciences. 

(4) The term `program' means the electric and magnetic fields research and public information 

dissemination program established in subsection (a). 

(5) The term `State' means each of the 50 States, the District of Columbia, the Commonwealth of 

Puerto Rico, the Commonwealth of the Northern Mariana Islands, Guam, the Virgin Islands, 

American Samoa, the Trust Territory of the Pacific Islands, and any other commonwealth, 

territory, or possession of the United States. 

(j) AUTHORIZATION OF APPROPRIATIONS- 

(1) GENERAL AUTHORIZATION- There are authorized to be appropriated to the Secretary a 

total of $65,000,000 for the period encompassing fiscal years 1993 through 1997 to carry out the 

provisions of this section, except that not more than $1,000,000 may be expended in any such 

fiscal year for activities under subsection (b)(1). Any amounts appropriated pursuant to this 

paragraph shall remain available until expended. 

(2) RESTRICTIONS ON USE OF FUNDS- 

(A) ADMINISTRATIVE EXPENSES OF CERTAIN FUNDING RECIPIENTS- Of the 

total funds provided to any institution under this section, the amount of such funds that may 

be used for the administrative indirect costs of the institution may not exceed 26 percent of 

the modified direct costs of the project. 

(B) ADMINISTRATIVE EXPENSES OF THE SECRETARY AND THE DIRECTOR- Of 

the total amount of funds made available under this section for any fiscal year, not more 

than 10 percent of such funds may be used for authorized administrative expenses of the 

Secretary and the Director in carrying out this section. 

(C) CONSTRUCTION AND REHABILITATION OF FACILITIES AND EQUIPMENTFunds made available under this section may not be used for the construction or 

rehabilitation of facilities or fixed equipment. 

(k) SENSE OF CONGRESS- It is the sense of the Congress that remedial action taken by the 

Government on electric and magnetic fields, if and as necessary, should be based on, and consistent with, 

scientifically valid research such as the results and findings of the research authorized by this Act. 

(l) SUNSET PROVISION- All authority under this section shall expire on December 31, 1997. 

SEC. 2119. SPARK M. MATSUNAGA RENEWABLE ENERGY AND OCEAN TECHNOLOGY CENTER. 

(a) FINDINGS- The Congress finds that-- 

(1) the late Spark M. Matsunaga, United States Senator from Hawaii, was a longstanding 

champion of research and development of renewable energy, particularly wind and ocean energy, 

photovoltaics, and hydrogen fuels; 

(2) it was Senator Matsunaga's vision that renewable energy could provide a sustained source of 

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non-polluting energy and that such forms of alternative energy might ultimately be employed in 

the production of liquid hydrogen as a transportation fuel and energy storage medium available as 

an energy export; 

(3) Senator Matsunaga also believed that research on other aspects of renewable energy and ocean 

resources, such as advanced materials, could be crucial to full development of energy storage and 

conversion systems; and 

(4) Keahole Point, Hawaii is particularly well-suited as a site to conduct renewable energy and 

associated marine research. 

(b) PURPOSE- It is the purpose of this section to establish the facilities and equipment located at 

Keahole Point, Hawaii as a cooperative research and development facility, to be known as the Spark M. 

Matsunaga Renewable Energy and Ocean Technology Center. 

(c) ESTABLISHMENT- The facilities and equipment located at Keahole Point, Hawaii are established 

as the Spark M. Matsunaga Renewable Energy and Ocean Technology Center (in this section referred to 

as the `Center'). 

(d) ADMINISTRATION- (1) Not later than 180 days after the date of enactment of this Act, the 

Secretary may authorize a cooperative agreement with a qualified research institution to administer the 

Center. 

(2) For the purpose of paragraph (1), a qualified research institution is a research institution located in 

the State of Hawaii that has demonstrated competence and will be the lead organization in the State in 

renewable energy and ocean technologies. 

(e) ACTIVITIES- The Center may carry out research, development, educational, and technology transfer 

activities on-- 

(1) renewable energy; 

(2) energy storage, including the production of hydrogen from renewable energy; 

(3) materials applications related to energy and marine environments; 

(4) other environmental and ocean research concepts, including sea ranching and global climate 

change; and 

(5) such other matters as the Secretary may direct. 

(f) MATCHING FUNDS- To be eligible for Federal funds under this section, the Center must provide 

funding in cash or in kind from non-Federal sources for each amount provided by the Secretary. 

(g) AUTHORIZATION- There is authorized to be appropriated to the Secretary for carrying out this 

section such sums as may be necessary, to be derived from sums authorized under section 2111(c). 

Subtitle C--Advanced Nuclear Reactors 

SEC. 2121. PURPOSES AND DEFINITIONS.

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(a) PURPOSES- The purposes of this subtitle are-- 

(1) to require the Secretary to carry out civilian nuclear programs in a way that will lead toward 

the commercial availability of advanced nuclear reactor technologies; and 

(2) to authorize such activities to further the timely availability of advanced nuclear reactor 

technologies, including technologies that utilize standardized designs or exhibit passive safety 

features. 

(b) DEFINITIONS- For purposes of this subtitle-- 

(1) the term `advanced nuclear reactor technologies' means-- 

(A) advanced light water reactors that may be commercially available in the near-term, 

including but not limited to mid-sized reactors with passive safety features for the 

generation of commercial electric power from nuclear fission; and 

(B) other advanced nuclear reactor technologies that may require prototype demonstration 

prior to commercial availability in the mid- or long-term, including but not limited to hightemperature, gas-cooled reactors and liquid metal reactors, for the generation of commercial 

electric power from nuclear fission; 

(2) the term `Commission' means the Nuclear Regulatory Commission; 

(3) the term `standardized design' means a design for a nuclear power plant that may be utilized for 

a multiple number of units or a multiple number of sites; and 

(4) the term `certification' means approval by the Commission of a standardized design. 

SEC. 2122. PROGRAM, GOALS, AND PLAN. 

(a) PROGRAM DIRECTION- The Secretary shall conduct a program to encourage the deployment of 

advanced nuclear reactor technologies that to the maximum extent practicable-- 

(1) are cost effective in comparison to alternative sources of commercial electric power of 

comparable availability and reliability, taking into consideration life cycle environmental costs; 

(2) facilitate the design, licensing, construction, and operation of a nuclear powerplant using a 

standardized design; 

(3) exhibit enhanced safety features; and 

(4) incorporate features that advance the objectives of the Nuclear Non-Proliferation Act of 1978. 

(b) PROGRAM GOALS- The goals of the program established under subsection (a) shall include-- 

(1) for the near-term-- 

(A) to facilitate the completion, by September 30, 1996, for certification by the 

Commission, of standardized advanced light water reactor technology designs that the 

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Secretary determines have the characteristics described in subsection (a) (1) through (4); 

(B) to facilitate the completion of submissions, by September 30, 1996, for preliminary 

design approvals by the Commission of standardized designs for the modular hightemperature gas-cooled reactor technology and the liquid metal reactor technology; and 

(C) to evaluate by September 30, 1996, actinide burn technology to determine if it can 

reduce the volume of long-lived fission byproducts; 

(2) for the mid-term-- 

(A) to facilitate increased efficiency of enhanced safety, advanced light water reactors to 

produce electric power at the lowest cost to the customer; 

(B) to develop advanced reactor concepts that are passively safe and environmentally 

acceptable; and 

(C) to complete necessary research and development on high-temperature gas-cooled reactor 

technology and liquid metal reactor technology to support the selection, by September 30, 

1998, of one or both of those technologies as appropriate for prototype demonstration; and 

(3) for the long-term, to complete research and development and demonstration to support the 

design of advanced reactor technologies capable of providing electric power to a utility grid as 

soon as practicable but no later than the year 2010. 

(c) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a 5-year program plan to guide the activities under this section. The 

program plan shall include schedule milestones, Federal funding requirements, and non-Federal cost 

sharing requirements. In preparing the program plan, the Secretary shall take into consideration-- 

(1) the need for, and the potential for future adoption by electric utilities or other entities of, 

advanced nuclear reactor technologies that are available, under development, or have the potential 

for being developed, for the generation of energy from nuclear fission; 

(2) how the Federal Government, acting through the Secretary, can be effective in ensuring the 

availability of such technologies when they are needed; 

(3) how the Federal Government can most effectively cooperate with the private sector in the 

accomplishment of the goals set forth in subsection (b); and 

(4) potential alternative funding sources for carrying out this section. 

In preparing the program plan, the Secretary shall consult with appropriate representatives of industry, 

institutions of higher education, Federal agencies, including national laboratories, and professional and 

technical societies. The Secretary shall update the program plan annually and submit such update to 

Congress. Each such update shall describe any activities that are behind schedule, any funding shortfalls, 

and any other circumstances that might affect the ability of the Secretary to meet the goals set forth in 

subsection (b). 

SEC. 2123. COMMERCIALIZATION OF ADVANCED LIGHT WATER REACTOR TECHNOLOGY. 

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(a) CERTIFICATION OF DESIGNS- In order to achieve the goal of certification of completed 

standardized designs by the Commission by 1996 as set forth in section 2122(b), the Secretary shall 

conduct a 5-year program of technical and financial assistance to encourage the development and 

submission for certification of advanced light water reactor designs which, in the judgment of the 

Secretary, can be certified by the Commission by no later than the end of fiscal year 1996. 

(b) FIRST-OF-A-KIND ENGINEERING- 

(1) ESTABLISHMENT OF PROGRAM- The Secretary shall conduct a program of Federal 

financial and technical assistance for the first-of-a-kind engineering design of standardized 

commercial nuclear powerplants which are included, as of the date of enactment of this Act, in the 

Department of Energy's program for certification of advanced light water reactor designs. 

(2) SELECTION CRITERIA- In order to be eligible for assistance under this subsection, an entity 

shall certify to the satisfaction of the Secretary that-- 

(A) the entity, or its members, are bona fide entities engaged in the design, engineering, 

manufacture, construction, or operation of nuclear reactors; 

(B) the entity, or its members, have the financial resources necessary for, and fully intend to 

pursue the design, engineering, manufacture, construction, and operation in the United 

States of nuclear power plants through completion of construction and into operation; 

(C) the design proposed is scheduled for certification by the Commission under the 

Department of Energy's program for certification of light water reactor designs; and 

(D) at least 50 percent of the funding for the project shall be obtained from non-Federal 

sources, and a substantial portion of that non-Federal funding shall be obtained from utilities 

or entities whose primary purpose is the production of electrical power for public 

consumption. 

(3) PROGRAM DOCUMENTS- The Secretary shall prepare and submit to the Congress a 

program document for each design selected under this subsection, specifying goals and objectives, 

major milestones for achieving those goals and objectives, and the work products to be provided to 

the Secretary or made available for inspection. 

(4) FUNDING LIMITATIONS- (A) Before entering into an agreement with an entity under this 

subsection, the Secretary shall establish a cost ceiling for the contribution of the Federal 

Government for the project, and shall report such cost ceiling to the Congress. 

(B) No entity shall receive assistance under this subsection for a period greater than 4 years. 

(C) The aggregate funding provided by the Secretary for projects under this subsection shall not 

exceed $100,000,000 for the period encompassing fiscal years 1993 through 1997. 

(5) STATUS REPORT- The Secretary shall annually submit to the Congress a status report on 

each project receiving assistance under this subsection. 

SEC. 2124. PROTOTYPE DEMONSTRATION OF ADVANCED NUCLEAR REACTOR TECHNOLOGY. 

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(a) SOLICITATION OF PROPOSALS- Within 3 years after the date of enactment of this Act, the 

Secretary shall solicit proposals for carrying out the preliminary engineering design of not more than 2 

prototype advanced nuclear reactor technologies developed by the Department of Energy, other than 

advanced light water reactor technologies, necessary to support a decision on whether to recommend 

construction of a prototype demonstration reactor with the characteristics described in section 2123(a). 

Proposals submitted under this subsection shall be for modular design concepts of sufficient size to 

address requirements related to the certification of a standardized design. 

(b) RECOMMENDATION TO CONGRESS- (1) Not later than September 30, 1998, the Secretary shall 

submit to Congress recommendations on whether to build one or more prototype demonstration reactors 

under this section. Such recommendations shall-- 

(A) specify a preferred technology or technologies; 

(B) include detailed information on milestones for construction and operation; 

(C) include an estimate of the funding requirements; and 

(D) specify the extent and type of non-Federal financial support anticipated. 

In developing the recommendations under this paragraph, the Secretary shall provide for public notice 

and an opportunity for comment, and shall solicit the views of the Commission and other parties with 

technical expertise the Secretary considers useful in the development of such recommendations. 

(2) The prototype demonstration program under this section shall be carried out to the maximum extent 

practicable with private sector funding. At least 50 percent of the funding for such program shall be nonFederal funding. The extent of non-Federal cost sharing proposed for any demonstration project shall be 

a criterion for the selection of the project. 

(c) SELECTION OF TECHNOLOGY- Any technology selected by the Secretary for recommendation 

for prototype demonstration under this section shall to the maximum extent possible exhibit the 

characteristics set forth in section 2123(a). 

SEC. 2125. REPEALS. 

The Renewable Energy and Energy Efficiency Technology Competitiveness Act of 1989 is amended-- 

(1) in section 4(c)(1)(C), by inserting `and' after `Program;'; 

(2) in section 4(c)(2)(C), by striking `Program; and' and inserting in lieu thereof `Program.'; 

(3) by striking section 4(c)(3); 

(4) in section 5(1)(B), by inserting `and' after `program;'; 

(5) in section 5(2)(B), by striking `program; and' and inserting in lieu thereof `program.'; and 

(6) by striking section 5(3). 

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SEC. 2126. AUTHORIZATION OF APPROPRIATIONS. 

There are authorized to be appropriated to the Secretary for carrying out this subtitle $212,804,000 for 

fiscal year 1993 and such sums as may be necessary for fiscal year 1994. Amounts authorized or 

otherwise made available for program direction, space reactor power systems, advanced radioisotope 

power systems, and the space exploration initiative under nuclear energy research and development shall 

be in addition to the amounts authorized in the preceding sentence. 

TITLE XXII--ENERGY AND ECONOMIC GROWTH 

SEC. 2201. NATIONAL ADVANCED MATERIALS INITIATIVE. 

(a) PROGRAM DIRECTION- The Secretary shall establish a 5-year National Advanced Materials 

Program, in accordance with sections 3001 and 3002 of this Act. Such program shall foster the 

commercialization of techniques for processing, synthesizing, fabricating, and manufacturing advanced 

materials and associated components. At a minimum, the Program shall expedite the private sector 

deployment of advanced materials for use in high performance energy efficient and renewable energy 

technologies in the industrial, transportation, and buildings sectors that can foster economic growth and 

competitiveness. The Program shall include field demonstrations of sufficient scale and number to prove 

technical and economic feasibility. 

(b) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary, in 

consultation with appropriate representatives of industry, institutions of higher education, Department of 

Energy national laboratories, and professional and technical societies, shall prepare and submit to the 

Congress a 5-year program plan to guide activities under this section. The Secretary shall biennially 

update and resubmit the program plan to Congress. 

(c) PROPOSALS- 

(1) SOLICITATION- Within 1 year after the date of enactment of this Act, the Secretary shall 

solicit proposals for conducting activities consistent with the 5-year program plan. Such proposals 

may be submitted by one or more parties. 

(2) CONTENTS OF PROPOSALS- Proposals submitted under this subsection shall include-- 

(A) an explanation of how the proposal will expedite the commercialization of advanced 

materials in energy efficiency or renewable energy in the near-term to mid-term; 

(B) evidence of consideration of whether the unique capabilities of Department of Energy 

national laboratories warrants collaboration with such laboratories, and the extent of such 

collaboration proposed; 

(C) a description of the extent to which the proposal includes collaboration with relevant 

industry or other groups or organizations; and 

(D) evidence of the ability of the proposers to undertake and complete the proposed project. 

(d) GENERAL SERVICES ADMINISTRATION DEMONSTRATION PROGRAM- The Secretary, in 

consultation with the Administrator of General Services, shall establish a program to expedite the use, in 

goods and services acquired by the General Services Administration, of advanced materials technologies. 

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Such program shall include a demonstration of the use of advanced materials technologies as may be 

necessary to establish technical and economic feasibility. The Secretary shall transfer funds to the 

General Services Administration for carrying out this subsection. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section such sums as may be necessary, to be derived for energy efficient 

applications from section 2101(e) and for renewable applications from section 2111(c), including 

Department of Energy national laboratory participation in proposals submitted under subsection (c), and 

including transferring funds to the General Services Administration. 

SEC. 2202. NATIONAL ADVANCED MANUFACTURING TECHNOLOGIES INITIATIVE. 

(a) PROGRAM DIRECTION- The Secretary shall establish a 5-year National Advanced Manufacturing 

Technologies Program, in accordance with sections 3001 and 3002 of this Act. Such program shall foster 

the commercialization of advanced manufacturing technologies to improve energy efficiency and 

productivity in manufacturing. At a minimum, the Program shall expedite the private sector deployment 

of advanced manufacturing technologies to improve productivity, quality, and control in manufacturing 

processes that can foster economic growth, energy efficiency, and competitiveness. The program shall 

include field demonstrations of sufficient scale and number to prove technical and economic feasibility. 

(b) PROGRAM PLAN- Within 180 days after the date of enactment of this Act, the Secretary, in 

consultation with appropriate representatives of industry, institutions of higher education, Department of 

Energy national laboratories, and professional and technical societies, shall prepare and submit to the 

Congress a 5-year program plan to guide activities under this section. The Secretary shall biennially 

update and resubmit the program plan to Congress. 

(c) PROPOSALS- 

(1) SOLICITATION- Within 1 year after the date of enactment of this Act, the Secretary shall 

solicit proposals for conducting activities consistent with the 5-year program plan. Such proposals 

may be submitted by one or more parties. 

(2) CONTENTS OF PROPOSALS- Proposals submitted under this subsection shall include-- 

(A) an explanation of how the proposal will expedite the commercialization of advanced 

manufacturing technologies to improve energy efficiency in the building, industry, and 

transportation sectors; 

(B) evidence of consideration of whether the unique capabilities of Department of Energy 

national laboratories warrants collaboration with such laboratories, and the extent of such 

collaboration proposed; 

(C) a description of the extent to which the proposal includes collaboration with relevant 

industry or other groups or organizations; and 

(D) evidence of the ability of the proposers to undertake and complete the proposed project. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for carrying out this section such sums as may be necessary, to be derived from sums 

authorized under section 2101(e), including Department of Energy national laboratory participation in 

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proposals submitted under subsection (c). 

SEC. 2203. SUPPORTING RESEARCH AND TECHNICAL ANALYSIS. 

(a) BASIC ENERGY SCIENCES- 

(1) PROGRAM DIRECTION- The Secretary shall continue to support a vigorous program of 

basic energy sciences to provide basic research support for the development of energy 

technologies. Such program shall focus on the efficient production and use of energy, and the 

expansion of our knowledge of materials, chemistry, geology, and other related areas of advancing 

technology development. 

(2) USER FACILITIES- (A) As part of the program referred to in paragraph (1), the Secretary 

shall carry out planning, construction, and operation of user facilities to provide special scientific 

and research capabilities, including technical expertise and support as appropriate, to serve the 

research needs of our Nation's universities, industry, private laboratories, Federal laboratories, and 

others. Research institutions or individuals from other nations shall be accommodated at such user 

facilities in cases where reciprocal accommodations are provided to United States research 

institutions and individuals or where the Secretary considers such accommodation to be in the 

national interest. 

(B) The construction of the Advanced Photon Source at the Argonne National Laboratory is 

hereby authorized. 

(C) The Secretary shall not change the user fee practice in effect as of October 1, 1991, with 

respect to user facilities unless the Secretary notifies Congress 90 days before the effective date of 

any change. 

(D) The Secretary shall expedite the design for construction of the Advanced Neutron Source at 

the Oak Ridge National Laboratory, in order to provide critical research capabilities in support of 

our national research initiatives for advanced materials and biotechnology, as well as a broad range 

of research. Such action shall be consistent with the Basic Energy Sciences Advisory Committee's 

Technical Evaluation of accelerator and reactor neutron source technologies. Within 90 days after 

the date of enactment of this Act, the Secretary shall submit to the Congress a plan for such design, 

including a schedule for construction. 

(3) COST SHARING- The Secretary shall not require cost sharing for research and development 

pursuant to this subsection, except-- 

(A) as otherwise provided for in cooperative research and development agreements or other 

agreements entered into under existing law; 

(B) for fees for user facilities, as determined by the Secretary; or 

(C) in the case of specific projects, where the Secretary determines that the benefits of such 

research and development accrue to a specific industry or group of industries, in which case 

cost sharing under section 3002 of this Act shall apply. 

(b) UNIVERSITY AND SCIENCE EDUCATION- (1) The Secretary shall support programs for 

improvements and upgrading of university research reactors and associated instrumentation and 

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equipment. Within 1 year after the date of enactment of this Act, the Secretary shall submit to the 

Congress a report on the condition and status of university research reactors, which includes a 5-year 

plan for upgrading and improving such facilities, instrumentation capabilities, and related equipment. 

(2) The Secretary shall develop a method to evaluate the effectiveness of science and mathematics 

education programs provided by the Department of Energy and its laboratories, including specific 

evaluation criteria. 

(3)(A)(i) The Director of the Office of Energy Research shall operate an Experimental Program to 

Stimulate Competitive Research (in this paragraph referred to as `EPSCoR') as part of the Department of 

Energy's University and Science Education Programs. 

(ii) The objectives of EPSCoR shall be-- 

(I) to enhance the competitiveness of the peer-review process within academic institutions in 

eligible States; and 

(II) to increase the probability of long-term growth of competitive funding to investigators at 

institutions from eligible States. 

(iii) In order to carry out the objectives stated in clause (ii), EPSCoR shall provide for activities which 

may include (but not be limited to) competitive research awards and graduate traineeships. 

(iv) EPSCoR shall assist those States that-- 

(I) historically have received relatively little Federal research and development funding; and 

(II) have demonstrated a commitment to develop their research bases and improve science and 

engineering research and education programs at their universities and colleges. 

(B) For purposes of this paragraph, the term `eligible States' means States that received a DepartmentEPSCoR planning or traineeship grant in fiscal year 1991 or fiscal year 1992. 

(C) No more than $5,000,000 of the funds appropriated to EPSCoR in any fiscal year, through fiscal year 

1997, are authorized to be appropriated for graduate traineeships. 

(c) TECHNOLOGY TRANSFER- The Secretary shall support technology transfer activities conducted 

by the National Laboratories. Within 1 year after the date of enactment of this Act, the Secretary shall 

submit to the Congress a report on the adequacy of funding for such activities, along with a proposal 

recommending ways to reduce the length of time required to consummate cooperative research and 

development agreements. 

(d) FACILITIES SUPPORT FOR MULTIPROGRAM ENERGY LABORATORIES- 

(1) FACILITY POLICY- The Secretary shall develop and implement a least cost strategy for 

correcting facility problems, closing unneeded facilities, making facility modifications, and 

building new facilities at multiprogram energy laboratories. 

(2) FACILITY PLAN- Within 1 year after the date of enactment of this Act, the Secretary shall 

prepare and submit to the Congress a comprehensive plan for conducting future facility

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maintenance, making repairs, modifications, and new additions, and constructing new facilities at 

multiprogram energy laboratories. Such plan shall provide for facilities work in accordance with 

the following priorities, listed in descending order of priority: 

(A) Providing for the safety and health of employees, visitors, and the general public with 

regard to correcting existing structural, mechanical, electrical, and environmental 

deficiencies. 

(B) Providing for the repair and rehabilitation of existing facilities to keep them in use and 

prevent deterioration. 

(C) Providing engineering design and construction services for those facilities which require 

modification or additions in order to meet the needs of new or expanded programs. 

Such plan shall include plans for new facilities and facility modifications which will be required to 

meet the Department of Energy's changing missions of the twenty-first century, including 

schedules and estimates for implementation, and including a section outlining long-term funding 

requirements consistent with anticipated budgets and annual authorization of appropriations. Such 

plan shall address the coordination of modernization and consolidation of facilities in order to 

meet changing mission requirements, and shall provide for annual reports to Congress on 

accomplishments, conformance to schedules, commitments, and expenditures. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Secretary for Supporting Research and Technical Analysis, including Basic Energy Sciences, Energy 

Research Analysis, University and Science Education, Technology Transfer, Advisory and Oversight 

Program Direction, and Facilities Support for Multiprogram Energy Laboratories, $966,804,000 for 

fiscal year 1993 and such sums as may be necessary for fiscal year 1994. 

SEC. 2204. MATH AND SCIENCE EDUCATION PROGRAM. 

(a) PROGRAM- The Secretary shall enter into contracts with existing qualified entities to conduct 

science and mathematics education programs that supplement the Special Programs for Students from 

Disadvantaged Backgrounds carried out by the Secretary of Education under sections 417A through 

417F of Public Law 89-329, as amended (20 U.S.C. 1070d through 1070d-1d). 

(b) PURPOSE- (1) The purpose of the programs shall be to provide support to Federal, State, and private 

programs designed to promote the participation of low-income and first generation college students as 

defined in section 417A of Public Law 89-329, as amended (20 U.S.C. 1070d-d), in post-secondary 

science and mathematics education. 

(2) Support activities may include-- 

(A) the development of educational materials; 

(B) the training of teachers and counselors; 

(C) the establishment of student internships; 

(D) the development of seminars on mathematics and science;

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(E) tutoring in mathematics and science; 

(F) academic counseling; 

(G) the development of opportunities for research; and 

(H) such other activities that may promote the participation of low-income and first generation 

college students in post-secondary science and mathematics education. 

(c) SUPPORT- (1) In carrying out the purpose of this section, the entities may provide support under 

subsection (b)(2) to-- 

(A) low-income and first generation college students; and 

(B) institutions of higher education, public and private agencies and organizations, and secondary 

and middle schools that principally benefit low-income students. 

(2) The qualified entities shall, to the extent practicable, coordinate support activities under this section 

with the Secretary of Education and the Secretary. 

(d) COOPERATION WITH QUALIFIED ENTITIES- The Secretary shall cooperate with qualified 

entities and, to the extent practicable, make available to the entities such personnel, facilities, and other 

resources of the Department of Energy as may be necessary to carry out the duties of the entities. 

(e) REPORT- Not later than October 1 of each year, the entities shall report to the Secretary, the 

Secretary of Education, and the Congress on-- 

(1) progress made to promote the participation of low-income and first generation college students 

in post-secondary science and mathematics education by-- 

(A) the qualified entities; 

(B) other mathematics and science education programs of the Department of Energy; and 

(C) the Special Programs for Students from Disadvantaged Backgrounds of the Department 

of Education; and 

(2) recommendations for such additional actions as may be needed to promote the participation of 

low-income students in post-secondary science and mathematics education. 

(f) EFFECT ON EXISTING PROGRAMS- The programs in this section shall supplement and be 

developed in cooperation with the current mathematics and science education programs of the 

Department of Energy and the Department of Education but shall not supplant them. 

(g) DEFINITION- For purposes of this section, the term `qualified entity' means a nonprofit corporation, 

association, or institution that has demonstrated special knowledge of, and experience with, the 

education of low-income and first generation college students and whose primary mission is the 

operation of national programs that focus on low-income students and provide training and other services 

to educators. 

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(h) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary, to be 

derived from section 2203(e) and the Environmental Restoration and Waste Management program, to 

carry out the purposes of this section. 

SEC. 2205. INTEGRATION OF RESEARCH AND DEVELOPMENT. 

Within 180 days after the date of enactment of this Act, the Secretary, in consultation with appropriate 

representatives of industry, institutions of higher education, Department of Energy national laboratories, 

and professional and technical societies, shall prepare and submit to Congress a 5-year program plan for 

improving the integration of basic energy research programs with other energy programs within the 

Department of Energy. Such program plan shall include-- 

(1) an evaluation of current procedures and mechanisms used to achieve such integration; 

(2) an assessment of the role that the Department of Energy national laboratories play in such 

integration; 

(3) an identification and evaluation of models that could enhance such integration; 

(4) an identification and evaluation of new programs, mechanisms, and related policy options that 

could improve the integrating process, including-- 

(A) set aside funding for matching or leveraging basic and applied programs; 

(B) more formal linkages; and 

(C) program coordination; 

(5) recommendations for expanded research and development and new technology areas; and 

(6) budget estimates for activities under this section. 

SEC. 2206. DEFINITIONS. 

For purposes of this title-- 

(1) the term `advanced manufacturing technology' means processes, equipment, techniques, 

practices, and capabilities that are applied for the purpose of-- 

(A) improving the productivity, quality, or energy efficiency of the design, development, 

testing, or manufacture of a product; or 

(B) expanding the technical capability to design, develop, test, or manufacture a product that 

is fundamentally different in character from existing products and that will result in 

improved energy efficiency; 

(2) the term `advanced materials' means materials that are processed, synthesized, fabricated, and 

manufactured to develop high performance properties that exceed the corresponding properties of 

conventional materials for structural, electronic, magnetic, or photonic applications, or for joining, 

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welding, bonding, or packaging components into complex assemblies, including-- 

(A) advanced monolithic materials such as metals, ceramics, and polymers; 

(B) advanced composite materials such as metal matrix (including intermetallics), polymer 

matrix, ceramic matrix, continuous fiber ceramic composite, and carbon matrix composites; 

and 

(C) advanced electronic, magnetic, and photonic materials, including superconducting, 

semiconductor, electrooptic, magnetooptic, thin-film, and special purpose coating materials 

used in technologies for energy efficiency, renewable energy, or electric power applications; 

and 

(3) the term `United States' means the 50 States of the United States, the District of Columbia, the 

Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, the Northern Mariana 

Islands, and any other territory or possession of the United States. 

TITLE XXIII--POLICY AND ADMINISTRATIVE PROVISIONS 

SEC. 2301. POLICY ON MAJOR CONSTRUCTION PROJECTS. 

(a) REPORT AND MANAGEMENT PLAN- The Secretary shall submit to the Congress a report and 

management plan for any major construction project involving $100,000,000 or more, prior to the 

expenditure of those funds. 

(b) CONGRESSIONAL REVIEW- Expenditure of funds for a project described in subsection (a) may be 

made after a period of 30 calendar days (not including any day on which either House of Congress is not 

in session because of adjournment of more than 3 calendar days prior to a day certain) has passed after 

receipt of the report and management plan by Congress. 

SEC. 2302. ENERGY RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL 

APPLICATION ADVISORY BOARD. 

(a) ESTABLISHMENT- The Secretary shall establish an Energy Research, Development, 

Demonstration, and Commercial Application Advisory Board (hereafter in this section referred to as the 

`Advisory Board'). 

(b) RESPONSIBILITIES- The Advisory Board shall provide impartial technical advice to the Secretary 

to assist in the development of energy research, development, demonstration, and commercial 

application plans and reports under sections 6 and 15 of the Federal Nonnuclear Energy Research and 

Development Act of 1974 (42 U.S.C. 5905 and 5914), under section 801 of the Department of Energy 

Organization Act (42 U.S.C. 7321), and as otherwise provided in titles XX through XXIII of this Act. 

The Advisory Board shall also periodically review such plans and reports and their implementation in 

relation to the goals stated in section 2001 of this Act, and report the results of such review to the 

Secretary and the Congress. Such report shall be included as part of the report required under section 15 

of the Federal Nonnuclear Energy Research and Development Act of 1974 (42 U.S.C. 5914). 

(c) USE OF EXISTING ADVISORY BOARD- The Secretary may use an existing advisory board to 

carry out the responsibilities described in subsection (b).

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SEC. 2303. AMENDMENTS TO EXISTING LAW. 

(a) FEDERAL NONNUCLEAR ENERGY RESEARCH AND DEVELOPMENT ACT OF 1974 

AMENDMENTS- Section 6 of the Federal Nonnuclear Energy Research and Development Act of 1974 

(42 U.S.C. 5905) is amended-- 

(1) in subsection (a)-- 

(A) by striking `the Administrator' and inserting `the Department of Energy Organization 

Act (42 U.S.C. 7101 et seq.), and titles XX through XXIII of the Energy Policy Act of 1992, 

the Secretary, in consultation with the Advisory Board established under section 2302 of the 

Energy Policy Act of 1992,'; 

(B) by striking `(to the early 1980's)' in paragraph (1) and inserting `(the period up to 5 years 

after submission of the plan or its annual revision)'; 

(C) by striking `(the early 1980's to 2000)' in paragraph (2) and inserting `(the period from 5 

years to 10 years after submission of the plan or its annual revision)'; and 

(D) by striking `(beyond 2000)' in paragraph (3) and inserting `(the period beyond 10 years 

after submission of the plan or its annual revision)'; 

(2) in subsection (b)-- 

(A) by striking `Administrator' in paragraphs (1) and (2) and inserting `Secretary, in 

consultation with the Advisory Board established under section 2302 of the Energy Policy 

Act of 1992,'; 

(B) by inserting `Such program shall be updated and transmitted to the Congress annually as 

part of the report required under section 15.' at the end of paragraph (1); 

(C) by striking `(to the early 1980's), middle-term (the early 1980's to 2000), and long-term 

(beyond 2000) time intervals' in paragraph (2) and inserting `, middle-term, and long-term 

time intervals described in subsection (a)(1) through (3)'; 

(D) by striking `and' at the end of paragraph (3)(P); 

(E) by striking the period at the end of paragraph (3)(Q) and inserting a semicolon; and 

(F) by adding at the end of paragraph (3) the following new subparagraphs: 

`(R) to implement the Renewable Energy and Energy Efficiency Technology Competitiveness Act 

of 1989 (42 U.S.C. 12001 et seq.); and 

`(S) to implement titles XX through XXIII of the Energy Policy Act of 1992.'; and 

(3) in subsection (c)-- 

(A) by striking `Administrator' and inserting `Secretary, in consultation with the Advisory 

Board established under section 2302 of the Energy Policy Act of 1992,'; and

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(B) by inserting `Such program shall be updated and transmitted to the Congress annually as 

part of the report required under section 15.' after `and demonstration plans.'. 

(b) RENEWABLE ENERGY AND ENERGY EFFICIENCY TECHNOLOGY COMPETITIVENESS 

ACT OF 1989 AMENDMENT- Section 9(b)(4) of the Renewable Energy and Energy Efficiency 

Technology Competitiveness Act of 1989 (42 U.S.C. 12006(b)(4)) is amended by inserting `and the plan 

developed under section 6 of the Federal Nonnuclear Energy Research and Development Act of 1974 

(42 U.S.C. 5905)' after `(42 U.S.C. 7321)'. 

SEC. 2304. MANAGEMENT PLAN. 

(a) PLAN PREPARATION- The Secretary, in consultation with the Advisory Board established under 

section 2302, shall prepare a management plan for the conduct of research, development, demonstration, 

and commercial application of energy technologies that is consistent with the goals stated in section 

2001. 

(b) CONTENTS OF PLAN- The management plan under subsection (a) shall provide for-- 

(1) investigation of promising energy and energy efficiency resource technologies that have been 

identified as potentially significant future contributors to national energy security; 

(2) development of energy and energy efficiency resource technologies that have the potential to 

reduce energy supply vulnerability, and to minimize adverse impacts on the environment, the 

global climate, and the economy; and 

(3) creation of opportunities for export of energy and energy efficiency resource technologies from 

the United States that can enhance the Nation's competitiveness. 

(c) ENERGY TECHNOLOGY INVENTORY AND STATUS REPORT- As part of the management 

plan, the Secretary, with the advice of the Advisory Board established under section 2302 of this Act, 

shall develop an inventory and status report of technologies to enhance energy supply and to improve the 

efficiency of energy end uses. The inventory and status report shall include fossil, renewable, nuclear, 

and energy conservation technologies which have not yet achieved the status of fully reliable and costcompetitive commercial availability, but which the Secretary projects may become available with 

additional research, development, and demonstration. The inventory and status report shall provide, for 

each technology-- 

(1) an assessment of its-- 

(A) degree of technological maturity; and 

(B) principal research, development, and demonstration issues, including-- 

(i) the barriers posed by capital, operating, and maintenance costs; 

(ii) technical performance; and 

(iii) potential environmental impacts; 

(2) the projected time frame for commercial availability, specifying at a minimum whether the 

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technology will be commercially available in the near-term, mid-term, or long-term, whether there 

are too many uncertainties to project availability, or whether it is unlikely that the technology will 

ever be commercial; and 

(3) a projection of the future cost-competitiveness of the technology in comparison with 

alternative technologies to provide the same energy service. 

(d) PUBLIC COMMENT- The Secretary shall publish the proposed management plan for a written 

public comment period of at least 90 days. The Secretary shall consider such comments and include a 

summary thereof in the management plan. 

(e) PLAN SUBMISSION- Within one year after the date of enactment of this Act, the Secretary shall 

submit the first management plan under this section to Congress. Thereafter, the Secretary shall submit a 

revised management plan biennially, at the time of submittal of the President's annual budget submission 

to the Congress. 

SEC. 2305. COSTS RELATED TO DECOMMISSIONING AND THE STORAGE AND DISPOSAL OF 

NUCLEAR WASTE. 

(a) AWARD OF CONTRACTS- 

(1) PRIME CONTRACTORS- In awarding contracts to perform nuclear hot cell services, the 

Secretary, in evaluating bids for such contracts, shall exclude from consideration costs related to 

the decommissioning of nuclear facilities or the storage and disposal of nuclear waste, if-- 

(A) one or more of the parties bidding to perform such services is a United States company 

that is subject to such costs; and 

(B) one or more of the parties bidding to perform such services is a foreign company that is 

not subject to comparable costs. 

(2) SUBCONTRACTORS- Any person awarded a contract subject to the restrictions described in 

paragraph (1) who subcontracts with a person to perform the services described in such paragraph 

shall be subject to the same restrictions in evaluating bids among potential subcontractors, as the 

Secretary was subject to in evaluating bids among prime contractors. 

(b) ISSUANCE OF REGULATIONS- The Secretary shall issue regulations not later than 90 days after 

the date of the enactment of this Act to carry out the requirements of subsection (a). 

(c) DEFINITIONS- As used in this section-- 

(1) the term `costs related to decommissioning of nuclear facilities' means any cost associated with 

the compliance with regulatory requirements governing the decommissioning of nuclear facilities 

licensed by the Nuclear Regulatory Commission; 

(2) the term `costs related to storage and disposal of nuclear waste' means any costs, whether 

required by regulation or incurred as a matter of prudent business practice, associated with the 

storage or disposal of nuclear waste; 

(3) the term `nuclear hot cell services' means services related to the examination of, or 

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performance of various operations on, nuclear fuel rods, control assemblies, or other components 

that are emitting large quantities of ionizing radiation; and 

(4) the term `nuclear waste' means any radioactive waste material subject to regulation by the 

Nuclear Regulatory Commission or the Department of Energy. 

SEC. 2306. LIMITS ON PARTICIPATION BY COMPANIES. 

A company shall be eligible to receive financial assistance under titles XX through XXIII of this Act 

only if-- 

(1) the Secretary finds that the company's participation in any program under such titles would be 

in the economic interest of the United States, as evidenced by investments in the United States in 

research, development, and manufacturing (including, for example, the manufacture of major 

components or subassemblies in the United States); significant contributions to employment in the 

United States; an agreement with respect to any technology arising from assistance provided under 

this section to promote the manufacture within the United States of products resulting from that 

technology (taking into account the goals of promoting the competitiveness of United States 

industry), and to procure parts and materials from competitive suppliers; and 

(2) either-- 

(A) the company is a United States-owned company; or 

(B) the Secretary finds that the company is incorporated in the United States and has a 

parent company which is incorporated in a country which affords to United States-owned 

companies opportunities, comparable to those afforded to any other company, to participate 

in any joint venture similar to those authorized under this Act; affords to United Statesowned companies local investment opportunities comparable to those afforded to any other 

company; and affords adequate and effective protection for the intellectual property rights of

United States-owned companies. 

SEC. 2307. UNCOSTED OBLIGATIONS. 

(a) REPORT- Along with the submission of each of the President's annual budget requests to Congress, 

the Secretary shall submit to Congress a report which-- 

(1) identifies the amount of Department of Energy funds that were, as of the end of the previous 

fiscal year-- 

(A) committed uncosted obligations; and 

(B) uncommitted uncosted obligations; 

(2) specifically describes the purposes for which all such funds are intended; and 

(3) explains the effect that information contained in the report has had on the annual budget 

request for the Department of Energy being simultaneously submitted. 

(b) DEFINITIONS- Within 90 days after the date of enactment of this Act, the Secretary shall submit a 

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report to the Congress containing definitions of the terms `uncosted obligation', `committed uncosted 

obligation', and `uncommitted uncosted obligation' for purposes of reports to be submitted under 

subsection (a). 

TITLE XXIV--NON-FEDERAL POWER ACT HYDROPOWER PROVISIONS 

SEC. 2401. RIGHTS-OF-WAY ON CERTAIN FEDERAL LANDS. 

Section 501 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1761) is amended-- 

(1) by inserting in subsection (a) after `public lands' the following: `(including public lands, as 

defined in section 103(e) of this Act, which are reserved from entry pursuant to section 24 of the 

Federal Power Act (16 U.S.C. 818))'; 

(2) in paragraph (4) of subsection (a), by striking `Federal Power Commission under the Federal 

Power Act of 1935 (49 Stat. 847; 16 U.S.C. 791) and inserting in lieu thereof `Federal Energy 

Regulatory Commission under the Federal Power Act, including part 1 thereof (41 Stat. 1063, 16 

U.S.C. 791a-825r).'; and 

(3) by adding the following new subsection at the end thereof: 

`(d) With respect to any project or portion thereof that was licensed pursuant to, or granted an exemption 

from, part I of the Federal Power Act which is located on lands subject to a reservation under section 24 

of the Federal Power Act and which did not receive a permit, right-of-way or other approval under this 

section prior to enactment of this subsection, no such permit, right-of-way, or other approval shall be 

required for continued operation, including continued operation pursuant to section 15 of the Federal 

Power Act, of such project unless the Commission determines that such project involves the use of any 

additional public lands or National Forest lands not subject to such reservation.'. 

SEC. 2402. DAMS IN NATIONAL PARK SYSTEM UNITS. 

After the date of enactment of this Act, the Federal Energy Regulatory Commission may not issue an 

original license under Part I of the Federal Power Act (nor an exemption from such Part) for any new 

hydroelectric power project located within the boundaries of any unit of the National Park System that 

would have a direct adverse effect on Federal lands within any such unit. Nothing in this section shall be 

construed as repealing any existing provision of law (or affecting any treaty) explicitly authorizing a 

hydroelectric power project. 

SEC. 2403. THIRD PARTY CONTRACTING BY FERC. 

(a) ENVIRONMENTAL IMPACT STATEMENTS- Where the Federal Energy Regulatory Commission 

is required to prepare a draft or final environmental impact statement under the National Environmental 

Policy Act of 1969 (42 U.S.C. 4321 and following) in connection with an application for a license under 

part I of the Federal Power Act, the Commission may permit, at the election of the applicant, a 

contractor, consultant or other person funded by the applicant and chosen by the Commission from 

among a list of such individuals or companies determined by the Commission to be qualified to do such 

work, to prepare such statement for the Commission. The contractor shall execute a disclosure statement 

prepared by the Commission specifying that it has no financial or other interest in the outcome of the 

project. The Commission shall establish the scope of work and procedures to assure that the contractor, 

consultant or other person has no financial or other potential conflict of interest in the outcome of the 

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proceeding. Nothing herein shall affect the Commission's responsibility to comply with the National 

Environmental Policy Act of 1969. 

(b) ENVIRONMENTAL ASSESSMENTS- Where an environmental assessment is required under the 

National Environmental Policy Act of 1969 (42 U.S.C. 4321 and following) in connection with an 

application for a license under part I of the Federal Power Act, the Commission may permit an applicant, 

or a contractor, consultant or other person selected by the applicant, to prepare such environmental 

assessment. The Commission shall institute procedures, including pre-application consultations, to 

advise potential applicants of studies or other information foreseeably required by the Commission. The 

Commission may allow the filing of such applicant-prepared environmental assessments as part of the 

application. Nothing herein shall affect the Commission's responsibility to comply with the National 

Environmental Policy Act of 1969. 

(c) EFFECTIVE DATE- This section shall take effect with respect to license applications filed after the 

enactment of this Act. 

SEC. 2404. IMPROVEMENT AT EXISTING FEDERAL FACILITIES. 

(a) STUDIES OF OPPORTUNITIES FOR INCREASED HYDROELECTRIC GENERATION- The 

Secretary, in consultation with the Secretary of the Interior and the Secretary of the Army, shall perform 

reconnaissance level studies of cost effective opportunities to increase hydropower production at existing 

federally-owned or operated water regulation, storage, and conveyance facilities. Such studies shall be 

completed within 2 years after the date of enactment of this Act and transmitted to the Committee on 

Energy and Natural Resources and the Committee on Environment and Public Works of the United 

States Senate and to the Committee on Energy and Commerce, the Committee on Interior and Insular 

Affairs, and the Committee on Public Works and Transportation of the United States House of 

Representatives. An individual study shall be prepared for each of the Nation's principal river basins. 

Each such study shall identify and describe with specificity the following matters: 

(1) opportunities to improve the efficiency of hydroelectric generation at such facilities through, 

but not limited to, mechanical, structural, or operational changes; 

(2) opportunities to improve the efficiency of the use of water supplied or regulated by Federal 

projects where such improvement could, in the absence of legal or administrative constraints, 

make additional water supplies available for hydroelectric generation or reduce project energy use;

(3) opportunities to create additional generating capacity at existing facilities through, but not 

limited to, the construction of additional generating units, the uprating of generators and turbines, 

and the construction of pumped storage facilities; and 

(4) preliminary assessment of the costs and the economic and environmental consequences of such 

measures. 

(b) EXCEPTION FOR PREVIOUS STUDIES- In those cases where studies of the type required by this 

section have been prepared by any agency of the United States and published within the ten years prior 

to the date of enactment of this Act, the Secretary may choose not to perform new studies but incorporate 

the information developed by such studies into the study reports required by this section. 

(c) AUTHORIZATION- There is authorized to be appropriated in each of the fiscal years 1993, 1994, 

and 1995 such sums as may be necessary to carry out the purposes of this section. 

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SEC. 2405. WATER CONSERVATION AND ENERGY PRODUCTION. 

(a) STUDIES- The Secretary of the Interior, acting pursuant to the Federal reclamation laws (Act of June 

17, 1902, 32 Stat. 388), and Acts supplementary thereto and amendatory thereof, is authorized and 

directed to conduct feasibility investigations of opportunities to increase the amount of hydroelectric 

energy available for marketing by the Secretary from Federal hydroelectric power generation facilities 

resulting from a reduction in the consumptive use of such power for Federal reclamation project 

purposes or as a result of an increase in the amount of water available for such generation because of 

water conservation efforts on Federal reclamation projects or a combination thereof. The Secretary of the 

Interior is further authorized and directed to conduct feasibility investigations of opportunities to 

mitigate damages to or enhance fish and wildlife as a result of increasing the amount of water available 

for such purposes because of water conservation efforts on Federal reclamation projects. Such feasibility 

investigations shall include, but not be limited to-- 

(1) an analysis of the technical, environmental, and economic feasibility of reducing the amount of 

water diverted upstream of such Federal hydroelectric power generation facilities by Federal 

reclamation projects; 

(2) an estimate of the reduction, if any, of project power consumed as a result of the decreased 

amount of diversion; 

(3) an estimate of the increase in the amount of electrical energy and related revenues which would 

result from the marketing of such power by the Secretary; 

(4) an estimate of the fish and wildlife benefits which would result from the decreased or modified 

diversions; 

(5) a finding by the Secretary of the Interior that the activities proposed in the feasibility study can 

be carried out in accordance with applicable Federal and State law, interstate compacts and the 

contractual obligations of the Secretary; and 

(6) a finding by the affected Federal Power Marketing Administrator that the hydroelectric 

component of the proposed water conservation feature is cost-effective and that the affected 

Administrator is able to market the hydro-electric power expected to be generated. 

(b) CONSULTATION- In preparing feasibility studies pursuant to this section, the Secretary of the 

Interior shall consult with, and seek the recommendations of, affected State, local and Indian tribal 

interests, and shall provide for appropriate public comment. 

(c) AUTHORIZATION- There is hereby authorized to be appropriated to the Secretary of the Interior 

such sums as may be necessary to carry out this section. 

SEC. 2406. FEDERAL PROJECTS IN THE PACIFIC NORTHWEST. 

Without further appropriation and without fiscal year limitation, the Secretaries of the Interior and Army 

are authorized to plan, design, construct, operate and maintain generation additions, improvements and 

replacements, at their respective Federal projects in the Pacific Northwest Region as defined in the 

Pacific Northwest Electric Power Planning and Conservation Act (Northwest Power Act), Public Law 

96-501 (16 U.S.C. 839a(14)), and to operate and maintain the respective Secretary's power facilities in 

the Region, that the respective Secretary determines necessary or appropriate and that the Bonneville 

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Power Administrator subsequently determines necessary or appropriate, with any funds that the 

Administrator determines to make available to the respective Secretary for such purposes. Each 

Secretary is authorized, without further appropriation, to accept and use such funds for such purposes: 

Provided, That, such funds shall continue to be exempt from sequestration pursuant to section 255(g)(1) 

of the Balanced Budget and Emergency Deficit Control Act of 1985: Provided further, That this section 

shall not modify or affect the applicability of any provision of the Northwest Power Act. This provision 

shall be effective on October 1, 1993. 

SEC. 2407. CERTAIN PROJECTS IN ALASKA. 

(a) AUTHORITY TO ISSUE EXEMPTIONS- Except as provided in subsection (b) or (c), upon receipt 

of an application under this section, the Federal Energy Regulatory Commission (hereinafter in this 

section referred to as the `Commission') may grant, notwithstanding the provisions of section 2402, an 

exemption in whole or in part from the requirements of part I of the Federal Power Act, including any 

license requirements contained in part I of the Federal Power Act, to the following facilities located in 

the State of Alaska: 

(1) a project located at Sitka, Alaska, with application numbered UL89-08-000; 

(2) a project located at Juneau, Alaska, with preliminary permit numbered 10681-000; and 

(3) a project located near Nondalton, Alaska, with application numbered EL88-25-001. 

(b) CAPACITY LIMITATIONS- No exemption under subsection (a) shall be applicable to any facility 

the installed capacity of which exceeds 5 megawatts. 

(c) MANDATORY TERMS AND CONDITIONS- In making the determination under subsection (a), 

the Commission shall consult with the United States Fish and Wildlife Service, the National Marine 

Fisheries Service, and the State agency exercising administration over the fish and wildlife resources of 

the State of Alaska, in the manner provided by the Fish and Wildlife Coordination Act (16 U.S.C. 661, et 

seq.), and shall include in any such exemption-- 

(1) such terms and conditions as the Fish and Wildlife Service, National Marine Fisheries Service, 

and the State agency each determine are appropriate to prevent loss of, or damage to, such 

resources and to otherwise carry out the purposes of such Act, and 

(2) such terms and conditions as the Commission deems appropriate to ensure that such facility 

continues to comply with the provisions of this section and terms and conditions included in any 

such exemption. 

(d) ENFORCEMENT- Any violation of a term or condition of any exemption granted under subsection 

(a) shall be treated as a violation of a rule or order of the Commission under the Federal Power Act. 

(e) FEES- The Commission may establish fees which shall be paid by an applicant for a license or 

exemption for a project that is required to meet terms and conditions set by fish and wildlife agencies 

under subsection (c). Such fees shall be adequate to reimburse the fish and wildlife agencies referred to 

in subsection (c) for any reasonable costs incurred in connection with any studies or other reviews 

carried out by such agencies for purposes of compliance with this section. The fees shall, subject to 

annual appropriations Acts, be transferred to such agencies by the Commission for use solely for 

purposes of carrying out such studies and shall remain available until expended. 

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(f) EXPEDITED PROCESSING- A completed application for an exemption under this section shall be 

acted on by the Commission in an expedited manner, in accordance with this section, within 6 months 

after the date on which the application for such exemption is applied for, or as promptly as practicable 

thereafter. 

SEC. 2408. PROJECTS ON FRESH WATERS IN STATE OF HAWAII. 

The Federal Energy Regulatory Commission, in consultation with the State of Hawaii, shall carry out a 

study of hydroelectric licensing in the State of Hawaii. For purposes of considering whether such 

licensing should be transferred to the State, within 18 months after the enactment of this Act, the 

Commission shall complete the study and submit a report containing the results of the study to the 

Committee on Energy and Commerce of the United States House of Representatives and to the 

Committee on Energy and Natural Resources of the United States Senate. The study shall examine, and 

the report shall at a minimum contain an analysis of, each of the following: 

(1) The State regulatory programs applicable to hydroelectric power production and the extent to 

which such programs are suitable as a substitute for regulation of such projects under the Federal 

Power Act, taking into consideration all aspects of such regulation, including energy, 

environmental, and safety considerations. 

(2) Any unique geographical, hydrological, or other characteristics of waterways in Hawaii or any 

other aspects of hydroelectric power development and natural resource protection in Hawaii that 

would justify or not justify the permanent transfer of Federal Energy Regulatory Commission 

jurisdiction over hydroelectric power projects to that State. 

(3) The adequacy of mechanisms and procedures for consideration of fish and wildlife and other 

environmental values applicable in connection with hydroelectric power development in Hawaii 

under the State programs referred to in paragraph (1). 

(4) Any national policy considerations that would justify or not justify the removal of Federal 

Energy Regulatory Commission jurisdiction over hydroelectric power projects in Hawaii. 

(5) The precedent-setting effect, if any, of provisions of law adopted by the Congress removing 

Federal Energy Regulatory Commission jurisdiction over hydroelectric power projects in Hawaii. 

SEC. 2409. EVALUATION OF DEVELOPMENT POTENTIAL. 

The Act of August 30, 1935 (Public Law No. 409 of the 74th Congress), is amended by inserting `The 

Secretary shall undertake a demonstration project to evaluate the potential for hydropower development, 

utilizing tidal currents;' after `Document Numbered 15, Seventy-fourth Congress;'. 

TITLE XXV--COAL, OIL, AND GAS 

SEC. 2501. HOT DRY ROCK GEOTHERMAL ENERGY. 

(a) USGS PROGRAM- The Secretary of the Interior, acting through the United States Geological 

Survey, and in consultation with the Secretary of Energy, shall establish a cooperative Governmentprivate sector program with respect to hot dry rock geothermal energy resources on public lands (as such 

term is defined in section 103(e) of the Federal Land Policy and Management Act of 1976) and lands 

managed by the Department of Agriculture, other than any such public or other lands that are withdrawn 

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from geothermal leasing. Such program shall include, but shall not be limited to, activities to identify, 

select, and classify those areas throughout the United States that have a high potential for hot dry rock 

geothermal energy production and activities to develop and disseminate information regarding the 

utilization of such areas for hot dry rock energy production. Such information may include information 

regarding field test processes and techniques for assuring that hot dry rock geothermal energy 

development projects are developed in an economically feasible manner without adverse environmental 

consequences. Utilizing the information developed by the Secretary, together with information 

developed in connection with other related programs carried out by other Federal agencies, the Secretary, 

acting through the United States Geological Survey, may also enter into contracts and cooperative 

agreements with any public or private entity to provide assistance to any such entity to enable such entity 

to carry out additional projects with respect to the utilization of hot dry rock geothermal energy resources 

which will further the purposes of this section. 

(b) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

may be necesary to carry out this section. 

SEC. 2502. HOT DRY ROCK GEOTHERMAL ENERGY IN EASTERN UNITED STATES. 

The United States Geological Survey, in collaboration with the Secretary of Energy, shall convene a 

workshop of interested governmental and private parties to discuss the regional potential for hot dry rock 

geothermal energy in the Eastern United States. The purpose of the workshop shall be to review the 

status of recoverability of hot dry rock energy in the Eastern United States and to determine what 

geologic, technological, and economic obstacles need to be overcome to make the utilization of hot dry 

rock energy feasible. The workshop shall be convened within 6 months after enactment of this Act and 

the United States Geological Survey shall submit a report to Congress within 6 months after the 

workshop containing a summary of the findings and conclusions of the workshop. 

SEC. 2503. COAL REMINING. 

(a) MODIFICATION OF PROHIBITION- Section 510 of the Surface Mining Control and Reclamation 

Act of 1977 (30 U.S.C. 1260) is amended by adding the following new subsection at the end thereof: 

`(e) MODIFICATION OF PROHIBITION- After the date of enactment of this subsection, the 

prohibition of subsection (c) shall not apply to a permit application due to any violation resulting from an 

unanticipated event or condition at a surface coal mining operation on lands eligible for remining under a 

permit held by the person making such application. As used in this subsection, the term `violation' has 

the same meaning as such term has under subsection (c). The authority of this subsection and section 515

(b)(20)(B) shall terminate on September 30, 2004.'. 

(b) PERIOD OF RESPONSIBILITY- Section 515(b)(20) of the Surface Mining Control and 

Reclamation Act of 1977 (30 U.S.C. 1265(b)(20)) is amended as follows: 

(1) Insert `(A)' after `(20)'. 

(2) Add the following new subparagraph at the end thereof: 

`(B) on lands eligible for remining assume the responsibility for successful revegetation for a 

period of two full years after the last year of augmented seeding, fertilizing, irrigation, or other 

work in order to assure compliance with the applicable standards, except in those areas or regions 

of the country where the annual average precipitation is twenty-six inches or less, then the 

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operator's assumption of responsibility and liability will be extended for a period of five full years 

after the last year of augmented seeding, fertilizing, irrigation, or other work in order to assure 

compliance with the applicable standards.'. 

(c) DEFINITIONS- Section 701 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 

1291) is amended by striking the period at the end of paragraph (32) and inserting a semicolon in lieu 

thereof, and by adding the following new paragraphs at the end thereof: 

`(33) the term `unanticipated event or condition' as used in section 510(e) means an event or 

condition encountered in a remining operation that was not contemplated by the applicable surface 

coal mining and reclamation permit; and 

`(34) the term `lands eligible for remining' means those lands that would otherwise be eligible for 

expenditures under section 404 or under section 402(g)(4).'. 

(d) ELIGIBILITY- Section 404 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 

1234) is amended by adding the following new sentence at the end thereof: `Surface coal mining 

operations on lands eligible for remining shall not affect the eligibility of such lands for reclamation and 

restoration under this title after the release of the bond or deposit for any such operation as provided 

under section 519. In the event the bond or deposit for a surface coal mining operation on lands eligible 

for remining is forfeited, funds available under this title may be used if the amount of such bond or 

deposit is not sufficient to provide for adequate reclamation or abatement, except that if conditions 

warrant the Secretary shall immediately exercise his authority under section 410.'. 

(e) ABANDONED COAL REFUSE SITES- (1) Notwithstanding any other provision of the Surface 

Mining Control and Reclamation Act of 1977 to the contrary, the Secretary of the Interior shall, within 

one year after the enactment of this Act, publish proposed regulations in the Federal Register, and after 

opportunity for public comment publish final regulations, establishing environmental protection 

performance and reclamation standards, and separate permit systems applicable to operations for the onsite reprocessing of abandoned coal refuse and operations for the removal of abandoned coal refuse on 

lands that would otherwise be eligible for expenditure under section 404 and section 402(g)(4) of the 

Surface Mining Control and Reclamation Act of 1977. 

(2) The standards and permit systems referred to in paragraph (1) shall distinguish between those 

operations which reprocess abandoned coal refuse on-site, and those operations which completely 

remove abandoned coal refuse from a site for the direct use of such coal refuse, or for the reprocessing of

such coal refuse, at another location. Such standards and permit systems shall be premised on the distinct 

differences between operations for the on-site reprocessing, and operations for the removal, of 

abandoned coal refuse and other types of surface coal mining operations. 

(3) The Secretary of the Interior may devise a different standard than any of those set forth in section 515 

and section 516 of the Surface Mining Control and Reclamation Act of 1977, and devise a separate 

permit system, if he determines, on a standard-by-standard basis, that a different standard may facilitate 

the on-site reprocessing, or the removal, of abandoned coal refuse in a manner that would provide the 

same level of environmental protection as under section 515 and section 516. 

(4) Not later than 30 days prior to the publication of the proposed regulations referred to in this 

subsection, the Secretary shall submit a report to the Committee on Interior and Insular Affairs of the 

United States House of Representatives, and the Committee on Energy and Natural Resources of the 

United States Senate containing a detailed description of any environmental protection performance and 

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reclamation standards, and separate permit systems, devised pursuant to this subsection. 

SEC. 2504. SURFACE MINING ACT IMPLEMENTATION. 

(a) SUBSIDENCE- (1) Title VII of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 

1291 and following) is amended by adding the following new section at the end thereof: 

`SEC. 720. SUBSIDENCE. 

`(a) REQUIREMENTS- Underground coal mining operations conducted after the date of enactment of 

this section shall comply with each of the following requirements: 

`(1) Promptly repair, or compensate for, material damage resulting from subsidence caused to any 

occupied residential dwelling and structures related thereto, or non-commercial building due to 

underground coal mining operations. Repair of damage shall include rehabilitation, restoration, or 

replacement of the damaged occupied residential dwelling and structures related thereto, or noncommercial building. Compensation shall be provided to the owner of the damaged occupied 

residential dwelling and structures related thereto or non-commercial building and shall be in the 

full amount of the diminution in value resulting from the subsidence. Compensation may be 

accomplished by the purchase, prior to mining, of a noncancellable premium-prepaid insurance 

policy. 

`(2) Promptly replace any drinking, domestic, or residential water supply from a well or spring in 

existence prior to the application for a surface coal mining and reclamation permit, which has been 

affected by contamination, diminution, or interruption resulting from underground coal mining 

operations. 

Nothing in this section shall be construed to prohibit or interrupt underground coal mining operations. 

`(b) REGULATIONS- Within one year after the date of enactment of this section, the Secretary shall, 

after providing notice and opportunity for public comment, promulgate final regulations to implement 

subsection (a).'. 

(2)(A) The Secretary of the Interior shall review existing requirements related to underground coal mine 

subsidence and natural gas and petroleum pipeline safety. Such review shall consider the following with 

respect to subsidence: notification; mitigation; coordination; requirements of the Natural Gas Pipeline 

Safety Act and the Hazardous Liquid Pipeline Safety Act; and the status of Federal, State and local laws, 

as well as common law, with respect to prevention or mitigation of damage from subsidence. 

(B) The review shall also include a survey of the status of Federal, State, and local laws, as well as 

common law, with respect to the responsibilities of the relevant parties for costs resulting from damage 

due to subsidence or from mitigation efforts undertaken to prevent damage from subsidence. 

(C) In conducting the review, the Secretary of the Interior shall consult with the Secretary of 

Transportation, the Attorney General of the United States, appropriate officials of relevant States, and 

owners and representatives of natural gas and petroleum pipeline companies and coal companies. 

(D) The Secretary of the Interior shall submit a report detailing the results of the review to the 

Committee on Energy and Natural Resources of the United States Senate and the Committee on Interior 

and Insular Affairs of the United States House of Representatives within 18 months of enactment of this 

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Act. Where appropriate, the Secretary of the Interior shall commence a rulemaking to address any 

deficiencies in existing law determined in the review under subparagraph (A) regarding notification, 

coordination and mitigation. 

(b) VALID EXISTING RIGHTS- During the 1-year period following the enactment of this Act, in 

administering the provisions of the Surface Mining Control and Reclamation Act of 1977 regarding valid 

existing rights, the Secretary of the Interior shall continue in force and effect the policies of the Office of 

Surface Mining as set forth in the November 10, 1986 Statement of Policy published in 51 Federal 

Register 41952. 

(c) RESEARCH- (1) Section 401(c)(6) of the Surface Mining Control and Reclamation Act of 1977 (30 

U.S.C. 1231(c)(6)) is amended as follows: 

(A) Insert `, research, and demonstration projects' after `studies'. 

(B) Strike `to provide information, advice, and technical assistance, including research and 

demonstration projects'. 

(2) Section 403(a) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1233) is 

amended by striking paragraph (4) and renumber the subsequent paragraphs accordingly. 

(3) Title VII of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1291 and 

following) is amended by adding the following new section after section 720: 

`SEC. 721. RESEARCH. 

`The Office of Surface Mining Reclamation and Enforcement is authorized to conduct studies, research 

and demonstration projects relating to the implementation of, and compliance with, title V of this Act, 

and provide technical assistance to states for that purpose. Prior to approving any such studies, research 

or demonstration projects the Director, Office of Surface Mining Reclamation and Enforcement, shall 

first consult with the Director, Bureau of Mines, and obtain a determination from such Director that the 

Bureau of Mines is not already conducting like or similar studies, research or demonstration projects. 

Studies, research and demonstration projects for the purposes of title IV of this Act shall only be 

conducted in accordance with section 401(c)(6).'. 

(d) COAL FORMATIONS- (1) In furtherance of the purposes of the Act of August 31, 1954 (30 U.S.C. 

551-558) the Secretary of the Interior, acting through the Director of the Office of Surface Mining 

Reclamation and Enforcement, shall, upon application by a State, enter into a cooperative agreement 

with any such State that has an approved abandoned mine reclamation program pursuant to section 405 

of the Surface Mining Control and Reclamation Act of 1977 to undertake the activities referred to in 

section 3(b) of the Act of August 31, 1954 (30 U.S.C. 553(b)). The Secretary shall immediately enter 

into such cooperative agreement upon application by a State. Any such cooperative agreement shall not 

be subject to review or approval by the Appalachian Regional Development Commission. 

(2) For the purposes of the cooperative agreements entered into pursuant to paragraph (1), the 

requirements of section 5 of the Act of August 31, 1954 (30 U.S.C. 555) are hereby waived. 

(3) Section 8 of the Act of August 31, 1954 (30 U.S.C. 558) is amended by striking `not to exceed 

$500,000 annually,'. 

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(e) TECHNICAL AMENDMENT- Section 403(b)(2) of the Surface Mining Control and Reclamation 

Act of 1977 (30 U.S.C. 1233(b)(2)) is amended by inserting `, or as the case may be, the dates (and 

under the criteria) set forth under section 402(g)(4)(B)' after `1977' in each instance such date appears. 

SEC. 2505. FEDERAL LIGNITE COAL ROYALTIES. 

(a) COAL IN FORT UNION REGION- Notwithstanding any other provision of law, or any regulation or 

guideline issued thereunder, the Secretary of the Interior may determine, with respect to lignite coal in 

the Fort Union region, a lesser royalty than the royalty specified under section 7 of the Mineral Leasing 

Act (30 U.S.C. 207). Any lesser royalty granted under this section, or under section 39 of the Mineral 

Leasing Act (30 U.S.C. 209) after March 29, 1990, for lignite coal in the Fort Union region shall 

continue for a term of at least 10 years from the effective date of such reduction. 

(b) REVIEW AND EXTENSION- Within 10 years after the date of enactment of this Act, the Secretary 

of the Interior shall review the effect of any royalty reduction pursuant to subsection (a) on the 

production of coal. If the Secretary determines that such royalty reduction has had no significant adverse 

impact on coal production, upon a request by a lignite coal operator in the Fort Union region, the 

Secretary may grant an additional royalty reduction for a period of 10 years, provided that the total term 

of the reduced royalty granted pursuant to subsection (a) and this subsection for a tract or lease does not 

exceed a period of 20 years. 

SEC. 2506. ACQUIRED FEDERAL LAND MINERAL RECEIPTS MANAGEMENT. 

(a) MINERAL RECEIPTS UNDER ACQUIRED LANDS ACT- Section 6 of the Mineral Leasing Act 

for Acquired Lands (30 U.S.C. 355) is amended by inserting `(a)' before the first sentence and by adding 

the following new subsection at the end thereof: 

`(b) Notwithstanding any other provision of law, any payment to a State under this section shall be made 

by the Secretary of the Interior and shall be made not later than the last business day of the month 

following the month in which such moneys or associated reports are received by the Secretary of the 

Interior, whichever is later. The Secretary shall pay interest to a State on any amount not paid to the State 

within that time at the rate prescribed under section 111 of the Federal Oil and Gas Royalty Management 

Act of 1982 from the date payment was required to be made under this subsection until the date payment 

is made.'. 

(b) AUTHORITY TO MANAGE CERTAIN MINERAL LEASES- The Mineral Leasing Act for 

Acquired Lands (30 U.S.C. 351 and following) is amended by adding the following new section at the 

end thereof: 

`SEC. 11. AUTHORITY TO MANAGE CERTAIN MINERAL LEASES. 

`Each department, agency and instrumentality of the United States which administers lands acquired by 

the United States with one or more existing mineral lease shall transfer to the Secretary of the Interior the 

authority to administer such lease and to collect all receipts due and payable to the United States under 

the lease. In the case of lands acquired on or before the date of the enactment of this section, the 

authority to administer the leases and collect receipts shall be transferred to the Secretary of the Interior 

as expeditiously as practicable after the date of enactment of this section. In the case of lands acquired 

after the date of enactment of this section, such authority shall be vested with the Secretary at the time of 

acquisition. The provisions of section 6 of this Act shall apply to all receipts derived from such leases 

where such receipts are due and payable to the United States under the lease in the same manner as such 

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provisions apply to receipts derived from leases issued under the authority of this Act. For purposes of 

this section, the term `existing mineral lease' means any lease in existence at the time land is acquired by 

the United States. Nothing in this section shall be construed to affect the existing surface management 

authority of any Federal agency.'. 

(c) CLARIFICATION- Section 7 of the Act of August 18, 1941, ch. 377 (33 U.S.C. 701c-3) is amended 

by adding the following sentence at the end thereof: `For the purposes of this section, the term `money' 

includes, but is not limited to, such bonuses, royalties and rentals (and any interest or other charge paid 

to the United States by reason of the late payment of any royalty, rent, bonus or other amount due to the 

United States) paid to the United States from a mineral lease issued under the authority of the Mineral 

Leasing Act for Acquired Lands or paid to the United States from a mineral lease in existence at the time 

of the acquisition of the land by the United States.'. 

SEC. 2507. RESERVED OIL AND GAS. 

(a) IN GENERAL- Section 17(b) of the Mineral Leasing Act (30 U.S.C. 226(b)) is amended as follows--

(1) In paragraph (1)(A), strike out `under paragraph (2)' and insert in lieu thereof `under 

paragraphs (2) and (3)'. 

(2) Adding at the end thereof the following new paragraph: 

`(3)(A) If the United States held a vested future interest in a mineral estate that, immediately prior to 

becoming a vested present interest, was subject to a lease under which oil or gas was being produced, or 

had a well capable of producing, in paying quantities at an annual average production volume per well 

per day of either not more than 15 barrels per day of oil or condensate, or not more than 60,000 cubic 

feet of gas, the holder of the lease may elect to continue the lease as a noncompetitive lease under 

subsection (c)(1). 

`(B) An election under this paragraph is effective-- 

`(i) in the case of an interest which vested after January 1, 1990, and on or before the date of 

enactment of this paragraph, if the election is made before the date that is 1 year after the date of 

enactment of this paragraph; 

`(ii) in the case of an interest which vests within 1 year after the date of enactment of this 

paragraph, if the election is made before the date that is 2 years after the date of enactment of this 

paragraph; and 

`(iii) in any case other than those described in clause (i) or (ii), if the election is made prior to the 

interest becoming a vested present interest. 

`(C) Notwithstanding the consent requirement referenced in section 3 of the Mineral Leasing Act for 

Acquired Lands (30 U.S.C. 352), the Secretary shall issue a noncompetitive lease under subsection (c)(1) 

to a holder who makes an election under subparagraph (A) and who is qualified to hold a lease under this 

Act. Such lease shall be subject to all terms and conditions under this Act that are applicable to leases 

issued under subsection (c)(1). 

`(D) A lease issued pursuant to this paragraph shall continue so long as oil or gas continues to be 

produced in paying quantities. 

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`(E) This paragraph shall apply only to those lands under the administration of the Secretary of 

Agriculture where the United States acquired an interest in such lands pursuant to the Act of March 1, 

1911 (36 Stat. 961 and following).'. 

(b) EFFECTIVE DATE- The amendments made by subsection (a) apply with respect to those mineral 

estates in which the interest of the United States becomes a vested present interest after January 1, 1990. 

SEC. 2508. CERTAIN OUTSTANDING OIL AND GAS. 

(a) IN GENERAL- Section 17 of the Mineral Leasing Act (30 U.S.C. 226) is amended by adding the 

following new subsection after subsection (n): 

`(o) CERTAIN OUTSTANDING OIL AND GAS- (1) Prior to the commencement of surface-disturbing 

activities relating to the development of oil and gas deposits on lands described under paragraph (5), the 

Secretary of Agriculture shall require, pursuant to regulations promulgated by the Secretary, that such 

activities be subject to terms and conditions as provided under paragraph (2). 

`(2) The terms and conditions referred to in paragraph (1) shall require that reasonable advance notice be 

furnished to the Secretary of Agriculture at least 60 days prior to the commencement of surface 

disturbing activities. 

`(3) Advance notice under paragraph (2) shall include each of the following items of information: 

`(A) A designated field representative. 

`(B) A map showing the location and dimensions of all improvements, including but not limited 

to, well sites and road and pipeline accesses. 

`(C) A plan of operations, of an interim character if necessary, setting forth a schedule for 

construction and drilling. 

`(D) A plan of erosion and sedimentation control. 

`(E) Proof of ownership of mineral title. 

Nothing in this subsection shall be construed to affect any authority of the State in which the lands 

concerned are located to impose any requirements with respect to such oil and gas operations. 

`(4) The person proposing to develop oil and gas deposits on lands described under paragraph (5) shall 

either-- 

`(A) permit the Secretary to market merchantable timber owned by the United States on lands 

subject to such activities; or 

`(B) arrange to purchase merchantable timber on lands subject to such surface disturbing activities 

from the Secretary of Agriculture, or otherwise arrange for the disposition of such merchantable 

timber, upon such terms and upon such advance notice of the items referred to in subparagraphs 

(A) through (E) of paragraph (3) as the Secretary may accept. 

`(5)(A) The lands referred to in this subsection are those lands referenced in subparagraph (B) which are 

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under the administration of the Secretary of Agriculture where the United States acquired an interest in 

such lands pursuant to the Act of March 1, 1911 (36 Stat. 961 and following), but does not have an 

interest in oil and gas deposits that may be present under such lands. This subsection does not apply to 

any such lands where, under the provisions of its acquisition of an interest in the lands, the United States 

is to acquire any oil and gas deposits that may be present under such lands in the future but such interest 

has not yet vested with the United States. 

`(B) This subsection shall only apply in the Allegheny National Forest.'. 

(b) REGULATIONS- Within 90 days after the enactment of this Act the Secretary of Agriculture shall 

promulgate regulations to implement the amendment made by subsection (a). 

SEC. 2509. FEDERAL ONSHORE OIL AND GAS LEASING. 

The first sentence of section 17(e) of the Mineral Leasing Act (30 U.S.C. 226(e)) is amended by striking 

the phrase starting with `Competitive leases' and ending with `ten years: Provided, however,' and 

inserting in lieu thereof the following: `Competitive and noncompetitive leases issued under this section 

shall be for a primary term of 10 years: Provided, however,'. 

SEC. 2510. OIL PLACER CLAIMS. 

Notwithstanding any other provision of law, in furtherance of the purposes of the Act of February 11, 

1897, commonly referred to as the Oil Placer Act, and section 37 of the Mineral Leasing Act, the 

Secretary of the Interior is authorized and directed to, within 90 days after the enactment of this Act, (1) 

convey by quit-claim deed to the owner or owners, or (2) separately and as an alternative, disclaim and 

relinquish by a document in any form suitable for recordation in the county within which the lands are 

situated, all right, title and interest or claim of interest of the United States to those lands in the counties 

of Hot Springs, Park and Washakie in the State of Wyoming, held pursuant to the Act of February 11, 

1897, and which are currently producing covered substances under a cooperative or unit plan of 

development. 

SEC. 2511. OIL SHALE CLAIMS. 

(a) NOTICE- Notwithstanding any other provision of law, within 60 days from the date of enactment of 

this Act, the Secretary of the Interior shall provide notice to each holder of an unpatented oil shale 

mining claim of the requirements of this Act. Such notice shall be made by registered mail and by 

publication in a newspaper of general circulation in the areas in which such claims are located. 

(b) FULL PATENT- The holder of a valid oil shale mining claim who has filed a patent application and 

received first half final certificate for patent by date of enactment of this Act, may obtain a patent 

pursuant to the general mining laws of the United States. 

(c) PATENT- (1) Notwithstanding any other provision of law, the holder of a valid oil shale mining 

claim who has filed a patent application which has been accepted for processing by the Department of 

the Interior by the date of enactment of this Act but has not received first half final certificate for patent 

by the date of enactment of this Act may receive only a patent limited to the oil shale and associated 

minerals, upon payment of $2.50 per acre. Title to the surface and to all other minerals, including, but 

not limited to, oil, gas, and coal, shall remain in the United States. Patents issued pursuant to this 

subsection shall provide for surface use to the same extent as is provided under applicable law prior to 

enactment of this Act with respect to oil shale mining claims, subject to the requirements of subsection 

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(f). 

(2) Maintenance of claims referred to in this subsection prior to patent issuance shall be in accordance 

with the requirements of applicable law prior to enactment of this Act. 

(3) Any holder of a valid oil shale mining claim referred to in this subsection may maintain such claim in 

accordance with the requirements set forth in subsection (e)(2) in lieu of receiving a patent under this 

section. 

(4) Notwithstanding any other provision of law, any person referred to in paragraph (1) who obtains 

compensation from the United States as a result of the application of this section being declared to be a 

taking of property within the meaning of the Fifth Amendment to the United States Constitution, may 

obtain a full patent upon tender to the Secretary of the amount of such compensation, not including 

interest, and upon the receipt of such amount, the Secretary shall convey to such person a patent in the 

form and manner provided under the general mining laws of the United States. Such tender may only be 

made within 3 years of obtaining such compensation. 

(d) ELECTION- (1) Notwithstanding any other provision of law, within 180 days from the date of which 

the Secretary provided notice under subsection (a), a holder of a valid oil shale mining claim for which a 

patent application was not filed and accepted for processing by the Department of the Interior prior to the 

date of enactment of this Act shall file with the Secretary a notice of election to-- 

(A) proceed to limited patent as provided in subsection (e)(1); or 

(B) maintain the unpatented claim as provided for in subsection (e)(2). 

(2) Failure to file the notice of election as required by paragraph (1) shall be deemed conclusively to 

constitute an abandonment of the claim by operation of law. 

(3) Any claim holder who elects to proceed under paragraph (1)(A) must apply for a patent within 2 

years from the date of election or notify the Secretary in writing prior to expiration of the 2-year period 

of a decision to maintain such claim as provided in paragraph (1)(B) or such claim shall be deemed 

conclusively to have been abandoned by operation of law. 

(4) The provisions of this subsection shall be in addition to the requirements of section 314 of the 

Federal Land Policy and Management Act of 1976 (43 U.S.C. 1744). 

(e) EFFECT OF ELECTION- (1) Notwithstanding any other provisions of law, a claim holder subject to 

the election requirements of subsection (d) who elects to receive a limited patent shall receive title only 

to the oil shale associated minerals, upon payment of fair market value for the oil shale and associated 

minerals. Title to the surface and to all other minerals, including, but not limited to oil, gas, and coal, 

shall remain in the United States. Patents issued pursuant to this subsection shall provide for surface use 

to the same extent as is provided under applicable law prior to the enactment of this Act with respect to 

oil shale mining claims, subject to the requirements of subsection (f). 

(2) Notwithstanding any other provision of law, a claim holder referred to in subsection (c) or a claim 

holder subject to the election requirements of subsection (d) who maintains or elects to maintain an 

unpatented claim shall maintain such claim by complying with the general mining laws of the United 

States, and with the provisions of this section, except that the claim holder shall no longer be required to 

perform annual labor, and instead shall pay to the Secretary $550 per claim per year for deposit as 

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miscellaneous receipts in the general fund of the Treasury, commencing with calendar year 1993. Such 

fee shall accompany the filing made by the claim holder with the Bureau of Land Management pursuant 

to section 314(a)(2) of the Federal Land Policy and Management Act (43 U.S.C. 1744(a)(2)). 

(f) RECLAMATION- In addition to other applicable requirements, any person who holds a limited 

patent or maintains a claim pursuant to this section shall be required to carry out reclamation as 

prescribed by the Secretary and to furnish a bond or other appropriate financial guarantee in an amount 

sufficient to ensure adequate reclamation of the lands to be disturbed by any aspect of the proposed 

mining activities. 

(g) REAFFIRMATION OF REQUIREMENTS- Without comment on the adequacy of current or former 

standards for determining validity of oil shale claims, Congress reaffirms the requirements of law that a 

patent may issue only to persons who hold valid claims and the need for careful review of any 

applications. 

(h) ISSUANCE OF PATENTS- Notwithstanding any other provision of law, with respect to any oil 

shale mining claim located under the general mining laws of the United States, no patent for such claim 

shall be issued except as provided by this section. 

SEC. 2512. HEALTH, SAFETY, AND MINING TECHNOLOGY RESEARCH PROGRAM. 

(a) HEALTH, SAFETY, AND MINING TECHNOLOGY RESEARCH PLAN- (1) Every 5 years, the 

Secretary of the Interior, acting through the Director of the Bureau of Mines (hereinafter in this section 

referred to as the `Director'), shall develop a Plan for Health, Safety, and Mining Technology Research 

(hereinafter in this subsection referred to as the `Plan'). 

(2) The Plan shall identify the goals and objectives of the Health, Safety, and Mining Technology 

program of the Bureau of Mines, and shall guide research and technology development under such 

program, over each 5-year period. 

(3) In preparing the proposed Plan referred to in paragraph (1), the Director shall solicit suggestions, 

comments and proposals for research and technology development projects from the mining industry, 

labor, academia and other concerned groups and individuals. 

(b) TECHNICAL AMENDMENT- For the purposes of section 501(b) of Public Law 91-173, as 

amended, activities in the field of coal or other mine health under such section shall also be carried out 

by the Secretary of the Interior acting through the Director of the Bureau of Mines. Nothing in this 

subsection is intended to preclude or duplicate the ongoing research activities of the Bureau of Mines on 

health hazards safety technology or research conducted by the National Institute of Occupational Safety 

and Health on coal mine safety and health effects. 

SEC. 2513. ASSISTANCE TO SMALL COAL OPERATORS. 

(a) ASSISTANCE- Section 507(c) of the Surface Mining Control and Reclamation Act of 1977 (30 

U.S.C. 1257(c)) is amended to read as follows: 

`(c) ASSISTANCE TO SMALL COAL OPERATORS- (1) If the regulatory authority finds that the 

probable total annual production at all locations of a coal surface mining operator will not exceed 

300,000 tons, the cost of the following activities, which shall be performed by a qualified public or 

private laboratory or such other public or private qualified entity designated by the regulatory authority, 

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shall be assumed by the regulatory authority upon the written request of the operator in connection with 

a permit application: 

`(A) The determination of probable hydrologic consequences required by subsection (b)(11), 

including the engineering analyses and designs necessary for the determination. 

`(B) The development of cross-section maps and plans required by subsection (b)(14). 

`(C) The geologic drilling and statement of results of test borings and core samplings required by 

subsection (b)(15). 

`(D) The collection of archaeological information required by subsection (b)(13) and any other 

archaeological and historical information required by the regulatory authority, and the preparation 

of plans necessitated thereby. 

`(E) Pre-blast surveys required by section 515(b)(15)(E). 

`(F) The collection of site-specific resource information and production of protection and 

enhancement plans for fish and wildlife habitats and other environmental values required by the 

regulatory authority under this Act. 

`(2) The Secretary shall provide or assume the cost of training coal operators that meet the qualifications 

stated in paragraph (1) concerning the preparation of permit applications and compliance with the 

regulatory program, and shall ensure that qualified coal operators are aware of the assistance available 

under this subsection.'. 

(b) REIMBURSEMENT OF COSTS- Section 507 of the Surface Mining Control and Reclamation Act 

of 1977 (30 U.S.C. 1257) is amended by adding at the end thereof the following new subsection: 

`(h) REIMBURSEMENT OF COSTS- A coal operator that has received assistance pursuant to 

subsection (c) (1) or (2) shall reimburse the regulatory authority for the cost of the services rendered if 

the program administrator finds that the operator's actual and attributed annual production of coal for all 

locations exceeds 300,000 tons during the 12 months immediately following the date on which the 

operator is issued the surface coal mining and reclamation permit.'. 

SEC. 2514. SURFACE MINING REGULATIONS. 

Section 710 of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1300) is amended 

by adding at the end the following new subsection: 

`(i) GRANTS- The Secretary shall make grants to the Navajo, Hopi, Northern Cheyenne, and Crow 

tribes to assist such tribes in developing regulations and programs for regulating surface coal mining and 

reclamation operations on Indian lands, except that nothing in this subsection may be construed as 

providing such tribes with the authorities set forth under section 503. Grants made under this subsection 

shall be used to establish an office of surface mining regulation for each such tribe. Each such office 

shall-- 

`(1) develop tribal regulations and program policies with respect to surface mining; 

`(2) assist the Office of Surface Mining Reclamation and Enforcement established by section 201 

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in the inspection and enforcement of surface mining activities on Indian lands, including, but not 

limited to, permitting, mine plan review, and bond release; and 

`(3) sponsor employment training and education in the area of mining and mineral resources.'. 

SEC. 2515. AMENDMENT TO SURFACE MINING ACT. 

Section 402(b) of the Surface Mining Control and Reclamation Act of 1977 (30 U.S.C. 1232(b)) is 

amended by striking `1995' and inserting in lieu thereof `2004, after which time the fee shall be 

established at a rate to continue to provide for the deposit referred to in subsection (h)'. 

TITLE XXVI--INDIAN ENERGY RESOURCES 

SEC. 2601. DEFINITIONS. 

For purposes of this title-- 

(1) the term `Indian tribe' means any Indian tribe, band, nation, or other organized group or 

community, including any Alaska Native village or regional or village corporation as defined in or 

established pursuant to the Alaska Native Claims Settlement Act (43 U.S.C. 1601 et seq.), which is 

recognized as eligible for the special programs and services provided by the United States to 

Indians because of their status as Indians; and 

(2) the term `Indian reservation' includes Indian reservations; public domain Indian allotments; 

former Indian reservations in Oklahoma; land held by incorporated Native groups, regional 

corporations, and village corporations under the provisions of the Alaska Native Claims 

Settlement Act (43 U.S.C. 1601 et seq.); and dependent Indian communities within the borders of 

the United States whether within the original or subsequently acquired territory thereof, and 

whether within or without the limits of a State. 

SEC. 2602. TRIBAL CONSULTATION. 

In implementing the provisions of this Act, the Secretary of Energy shall involve and consult with Indian 

tribes to the maximum extent possible and where appropriate and shall do so in a manner that is 

consistent with the Federal trust and the Government-to-Government relationships between Indian tribes 

and the Federal Government. 

SEC. 2603. PROMOTING ENERGY RESOURCE DEVELOPMENT AND ENERGY VERTICAL 

INTEGRATION ON INDIAN RESERVATIONS. 

(a) DEMONSTRATION PROGRAMS- The Secretary of Energy, in consultation with the Secretary of 

the Interior, shall establish and implement a demonstration program to assist Indian tribes in pursuing 

energy self-sufficiency and to promote the development of a vertically integrated energy industry on 

Indian reservations, in order to increase development of the substantial energy resources located on such 

Indian reservations. Such program shall include, but not be limited to, the following components: 

(1) The Secretary shall provide development grants to Indian tribes or to joint ventures which are 

51 percent or more controlled by an Indian tribe to assist Indian tribes in obtaining the managerial 

and technical capability needed to develop the energy resources on Indian reservations. Such 

grants shall include provisions for management training for tribal or village members, improving

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the technical capacity of the Indian tribe, and the reduction of tribal unemployment. Each grant 

shall be for a period of 3 years. 

(2) The Secretary shall provide grants, not to exceed 50 percent of the project costs, for vertical 

integration projects. For purposes of this paragraph, the term `vertical integration project' means a 

project that promotes the vertical integration of the energy resources on an Indian reservation, so 

that the energy resources are used or processed on such Indian reservation. Such term includes, but 

is not limited to, projects involving solar and wind energy, oil refineries, the generation and 

transmission of electricity, hydroelectricity, cogeneration, natural gas distribution, and clean, 

innovative uses of coal. 

(3) The Secretary shall provide technical assistance (and such other assistance as is appropriate) to 

Indian tribes for energy resource development and to promote the vertical integration of energy 

resources on Indian reservations. 

(b) LOW INTEREST LOANS- 

(1) IN GENERAL- The Secretary shall establish a program for making low interest loans to Indian 

tribes. Such loans shall be used exclusively by Indian tribes in the promotion of energy resource 

development and vertical integration on Indian reservations. 

(2) TERMS- The Secretary shall establish reasonable terms for loans made under this section 

which are to be used to carry out the purposes of this section. 

(c) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated-- 

(1) $10,000,000 for each of the fiscal years 1994, 1995, 1996, and 1997 to carry out the purposes 

of subsection (a)(1); 

(2) $10,000,000 for each of the fiscal years 1994, 1995, 1996, and 1997 to carry out the purposes 

of subsection (a)(2); and 

(3) $10,000,000 for each of the fiscal years 1994, 1995, 1996, and 1997 to carry out the purposes 

of subsection (b). 

SEC. 2604. INDIAN ENERGY RESOURCE REGULATION. 

(a) GRANTS- The Secretary of the Interior is authorized to make annual grants to Indian tribes for the 

purpose of assisting Indian tribes in the development, administration, implementation, and enforcement 

of tribal laws and regulations governing the development of energy resources on Indian reservations. 

(b) PURPOSE- The purposes for which funds provided under a grant awarded under subsection (a) may 

be used include, but are not limited to-- 

(1) the training and education of employees responsible for enforcing or monitoring compliance 

with Federal and tribal laws and regulations; 

(2) the development of tribal inventories of energy resources; 

(3) the development of tribal laws and regulations;

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(4) the development of tribal legal and governmental infrastructure to regulate environmental 

quality pursuant to Federal and tribal laws; and 

(5) the enforcement and monitoring of Federal and tribal laws and regulations. 

(c) OTHER ASSISTANCE- The Secretary of the Interior and the Secretary of Energy shall cooperate 

with and provide assistance to Indian tribes for the purpose of assisting Indian tribes in the development, 

administration, and enforcement of tribal programs. Such cooperation and assistance shall include the 

following: 

(1) Technical assistance and training, including the provision of necessary circulars and training 

materials. 

(2) Assistance in the preparation and maintenance of a continuing inventory of information on 

tribal energy resources and tribal operations. In providing assistance under this paragraph, Federal 

departments and agencies shall make available to Indian tribes all relevant data concerning tribal 

energy resource development consistent with applicable laws regarding disclosure of proprietary 

and confidential information. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated $10,000,000 

for each of the fiscal years 1994, 1995, 1996, and 1997 to carry out the purposes of this section. 

SEC. 2605. INDIAN ENERGY RESOURCE COMMISSION. 

(a) ESTABLISHMENT- There is hereby established the Indian Energy Resource Commission (hereafter 

in this section referred to as the `Commission'). 

(b) MEMBERSHIP- The Commission shall consist of-- 

(1) 8 members appointed by the Secretary of the Interior from recommendations submitted by 

Indian tribes with developable energy resources, at least 4 of whom shall be elected tribal leaders; 

(2) 3 members appointed by the Secretary of the Interior from recommendations submitted by the 

Governors of States that have Indian reservations with developable energy resources; 

(3) 2 members appointed by the Secretary of the Interior from among individuals in the private 

sector with expertise in tribal and State taxation of energy resources; 

(4) 2 members appointed by the Secretary of the Interior from individuals with expertise in oil and 

gas royalty management administration, including auditing and accounting; 

(5) 2 members appointed by the Secretary of the Interior from individuals in the private sector with 

expertise in energy development; 

(6) 1 member appointed by the Secretary of the Interior from recommendations submitted by 

National environmental organizations; 

(7) the Secretary of the Interior, or his designee; and 

(8) the Secretary of Energy, or his designee.

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(c) APPOINTMENTS- Members of the Commission shall be appointed not later than 60 days after the 

date of the enactment of this title. 

(d) VACANCIES- A vacancy in the Commission shall be filled in the same manner as the original 

appointment was made. A vacancy in the Commission shall not affect the powers of the Commission. 

(e) CHAIRPERSON- The members of the Commission shall elect a Chairperson from among the 

members of the Commission. 

(f) QUORUM- Eleven members of the Commission shall constitute a quorum, but a lesser number may 

hold hearings. 

(g) ORGANIZATIONAL MEETING- The Commission shall hold an organizational meeting to establish 

the rules and procedures of the Commission not later than 30 days after the members are first appointed 

to the Commission. 

(h) COMPENSATION- Each member of the Commission who is not an officer or employee of the 

United States shall be compensated at a rate established by the Commission, not to exceed the rate of 

basic pay payable for level IV of the Executive Schedule under section 5315 of title 5, United States 

Code, for each day (including travel time) during which such member is engaged in the actual 

performance of duties as a member of the Commission. Each member of the Commission who is an 

officer or employee of the United States shall receive no additional compensation. 

(i) TRAVEL- While away from their homes or regular places of business in the performance of duties 

for the Commission, all members of the Commission shall be allowed travel expenses, including per 

diem in lieu of subsistence, at a rate established by the Commission not to exceed the rates authorized for 

employees under sections 5702 and 5703 of title 5, United States Code. 

(j) COMMISSION STAFF- 

(1) EXECUTIVE DIRECTOR- The Commission shall appoint an Executive Director who shall be 

compensated at a rate established by the Commission not to exceed the rate of basic pay payable 

for level V of the Executive Schedule under section 5316 of title 5, United States Code. 

(2) ADDITIONAL PERSONNEL- With the approval of the Commission, the Executive Director 

may appoint and fix the compensation of such additional personnel as the Executive Director 

considers necessary to carry out the duties of the Commission. Such appointments shall be made in 

accordance with the provisions of title 5, United States Code, governing appointments in the 

competitive service, but at rates not to exceed the rate of basic pay payable for level 15 of the 

General Schedule. 

(3) EXPERTS AND CONSULTANTS- Subject to such rules as may be issued by the 

Commission, the Chairperson may procure temporary and intermittent services of experts and 

consultants to the same extent as is authorized by section 3109 of title 5, United States Code, but at 

rates not to exceed $200 a day for individuals. 

(4) PERSONNEL DETAIL AUTHORIZED- Upon the request of the Chairperson, the head of any 

Federal agency is authorized to detail, on a reimbursable basis, any of the personnel of such 

agency to the Commission to assist the Commission in carrying out its duties under this title. Such 

detail shall be without interruption or loss of civil service status or privilege. 

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(k) DUTIES OF THE COMMISSION- The Commission shall-- 

(1) develop proposals to address the dual taxation by Indian tribes and States of the extraction of 

mineral resources on Indian reservations; 

(2) make recommendations to improve the management, administration, accounting and auditing 

of royalties associated with the production of oil and gas on Indian reservations; 

(3) develop alternatives for the collection and distribution of royalties associated with production 

of oil and gas on Indian reservations; 

(4) develop proposals on incentives to foster the development of energy resources on Indian 

reservations; 

(5) identify barriers or obstacles to the development of energy resources on Indian reservations, 

and make recommendations designed to foster the development of energy resources on Indian 

reservations and promote economic development; 

(6) develop proposals for the promotion of vertical integration of the development of energy 

resources on Indian reservations; and 

(7) develop proposals on taxation incentives to foster the development of energy resources on 

Indian reservations including, but not limited to, investment tax credits and enterprise zone credits.

(l) POWERS OF THE COMMISSION- The powers of the Commission shall include the following: 

(1) For the purpose of carrying out its duties under this section, the Commission may hold 

hearings, take testimony, and receive evidence at such times and places as the Commission 

considers appropriate. The Commission may administer oaths or affirmations to witnesses 

appearing before the Commission. 

(2) Any member or employee of the Commission may, if authorized by the Commission, take any 

action which the Commission is authorized to take by this section. 

(3) The Commission may secure directly from any Federal agency such information as may be 

necessary to enable the Commission to carry out its duties under this section. 

(m) COMMISSION REPORT- 

(1) IN GENERAL- The Commission shall, within 12 months after funds are made available to 

carry out this section, prepare and transmit to the President, the Committee on Interior and Insular 

Affairs of the House of Representatives, the Select Committee on Indian Affairs of the Senate, and 

the Committee on Energy and Natural Resources of the Senate, a report containing the 

recommendations and proposals specified in subsection (k). 

(2) REVIEW AND COMMENT- Prior to submission of the report required under this section, the 

Chairman shall circulate a draft of the report to Indian tribes and States that have Indian 

reservations with developable energy resources and other interested tribes and States for review 

and comment. 

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(n) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to the 

Commission $1,000,000 to carry out this section. Such sum shall remain available, without fiscal year 

limitation, until expended. 

(o) TERMINATION- The Commission shall terminate 30 days after submitting the final report required 

by subsection (m). 

SEC. 2606. TRIBAL GOVERNMENT ENERGY ASSISTANCE PROGRAM. 

(a) FINANCIAL ASSISTANCE- The Secretary may grant financial assistance to Indian tribal 

governments, or private sector persons working in cooperation with Indian tribal governments, to carry 

out projects to evaluate the feasibility of, develop options for, and encourage the adoption of energy 

efficiency and renewable energy projects on Indian reservations. Such grants may include the costs of 

technical assistance in resource assessment, feasibility analysis, technology transfer, and the resolution 

of other technical, financial, or management issues identified by the applicants for such grants. 

(b) CONDITIONS- Any applicant for financial assistance under this section must evidence coordination 

and cooperation with, and support from, local educational institutions and the affected local energy 

institutions. 

(c) CONSIDERATIONS- In determining the amount of financial assistance to be provided for a 

proposed project, the Secretary shall consider-- 

(1) the extent of involvement of local educational institutions and local energy institutions; 

(2) the ease and costs of operation and maintenance of any project contemplated as a part of the 

project; 

(3) whether the measure will contribute significantly to the development, or the quality of the 

environment, of the affected Indian reservations; and 

(4) any other factors which the Secretary may determine to be relevant to a particular project. 

(d) COST-SHARE- With the exception of grants awarded for the purpose of feasibility studies, the 

Secretary shall require at least 20 percent of the costs of any project under this section to be provided 

from non-Federal sources, unless the grant recipient is a for-profit private sector institution, in which 

case the Secretary shall require at least 50 percent of the costs of any project to be provided from nonFederal sources. 

(e) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated such sums as 

are necessary for the development and implementation of the program established by this section. 

TITLE XXVII--INSULAR AREAS ENERGY SECURITY 

SEC. 2701. INSULAR AREAS ENERGY ASSISTANCE PROGRAM. 

Section 604 of the Act entitled `An Act to authorize appropriations for certain insular areas of the United 

States, and for other purposes', Public Law 96-597, as amended by Public Law 98-213 (48 U.S.C. 1492), 

is amended by adding at the end the following new subsection:

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`(g) FINANCIAL ASSISTANCE- (1) The Secretary of Energy may grant financial assistance, not to 

exceed $2,000,000 annually, to insular area governments or private sector persons working in 

cooperation with insular area governments to carry out projects to evaluate the feasibility of, develop 

options for, and encourage the adoption of energy efficiency and renewable energy measures which 

reduce the dependency of the insular areas on imported fuels, improve the quality of the environment, 

and promote development in the insular areas. 

`(2) Any applicant for financial assistance under this subsection must evidence coordination and 

cooperation with, and support from, the affected local energy institutions. 

`(3) In determining the amount of financial assistance to be provided for a proposed project, the 

Secretary shall consider-- 

`(A) whether the measure will reduce the relative dependence of the insular area on imported fuels;

`(B) the ease and costs of operation and maintenance of any facilities contemplated as a part of the 

project; 

`(C) whether the project will rely on the use of conservation measures or indigenous, renewable 

energy resources that were identified in the 1982 Territorial Energy Assessment or that are 

identified by the Secretary as consistent with the purposes of this subsection; 

`(D) whether the measure will contribute significantly to development and the quality of the 

environment in the insular area; and 

`(E) any other factors which the Secretary may determine to be relevant to a particular project. 

`(4) Notwithstanding the requirements of section 501(d) of Public Law 95-134 (48 U.S.C. 1469a(d)), the 

Secretary shall require at least 20 percent of the costs of any project under this subsection to be provided 

from non-Federal sources. Such cost sharing may be in the form of in-kind services, donated equipment, 

or any combination thereof. 

`(5) For the purposes of this subsection-- 

`(A) the term `insular area' means American Samoa, the Commonwealth of the Northern Mariana 

Islands, the Commonwealth of Puerto Rico, the Federated States of Micronesia, Guam, the 

Republic of the Marshall Islands, the Republic of Palau, and the Virgin Islands; and 

`(B) the term `1982 Territorial Energy Assessment' means the comprehensive energy plan 

prepared by the Secretary of Energy pursuant to subsection (c).'. 

SEC. 2702. DEFINITION. 

For amendment of the definition of the term `State' for purposes of the nuclear waste negotiation 

provisions of title IV of the Nuclear Waste Policy Act of 1982 (42 U.S.C. 10241 et seq.), see section 802

(b). 

SEC. 2703. ELECTRICITY REQUIREMENTS IN TRUST TERRITORY OF THE PACIFIC ISLANDS. 

Not later than 3 months after the completion of the Palau National Master Development Plan developed 

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pursuant to the Department of the Interior Secretary's Order No. 3142, the Secretary of the Interior shall, 

in consultation with the Government of Palau, submit a plan to the Committee on Energy and Natural 

Resources of the Senate and the Committee on Interior and Insular Affairs of the House of 

Representatives to provide electric service in Palau that is consistent with determinations made in 

developing the Palau National Master Development Plan, with regard to the need for and financing and 

scheduling of the availability of such service. 

SEC. 2704. PCB CLEANUP IN MARSHALL ISLANDS AND FEDERATED STATES OF MICRONESIA. 

Section 105(h) of Public Law 99-239 is amended by adding at the end the following new paragraph: 

`(5) The programs and services of the Environmental Protection Agency regarding PCB's shall, to the 

extent applicable, as appropriate, and in accordance with applicable law, be construed to be made 

available to such islands.'. 

TITLE XXVIII--NUCLEAR PLANT LICENSING 

SEC. 2801. COMBINED LICENSES. 

Section 185 of the Atomic Energy Act of 1954 (42 U.S.C. 2235) is amended-- 

(1) in the heading for such section by adding `and Operating Licenses' after `Permits'; 

(2) by adding a subsection designator `a.' before `All applicants for licenses'; and 

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

`b. After holding a public hearing under section 189 a. (1)(A), the Commission shall issue to the 

applicant a combined construction and operating license if the application contains sufficient information 

to support the issuance of a combined license and the Commission determines that there is reasonable 

assurance that the facility will be constructed and will operate in conformity with the license, the 

provisions of this Act, and the Commission's rules and regulations. The Commission shall identify 

within the combined license the inspections, tests, and analyses, including those applicable to emergency 

planning, that the licensee shall perform, and the acceptance criteria that, if met, are necessary and 

sufficient to provide reasonable assurance that the facility has been constructed and will be operated in 

conformity with the license, the provisions of this Act, and the Commission's rules and regulations. 

Following issuance of the combined license, the Commission shall ensure that the prescribed 

inspections, tests, and analyses are performed and, prior to operation of the facility, shall find that the 

prescribed acceptance criteria are met. Any finding made under this subsection shall not require a 

hearing except as provided in section 189 a. (1)(B).'. 

SEC. 2802. POST-CONSTRUCTION HEARINGS ON COMBINED LICENSES. 

Section 189 a. (1) of the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)(1)) is amended-- 

(1) by adding a subparagraph designator `(A)' before `In any proceeding under this Act,'; and 

(2) by adding after subparagraph (A) the following new subparagraph: 

`(B)(i) Not less than 180 days before the date scheduled for initial loading of fuel into a plant by a 

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licensee that has been issued a combined construction permit and operating license under section 185 b., 

the Commission shall publish in the Federal Register notice of intended operation. That notice shall 

provide that any person whose interest may be affected by operation of the plant, may within 60 days 

request the Commission to hold a hearing on whether the facility as constructed complies, or on 

completion will comply, with the acceptance criteria of the license. 

`(ii) A request for hearing under clause (i) shall show, prima facie, that one or more of the acceptance 

criteria in the combined license have not been, or will not be met, and the specific operational 

consequences of nonconformance that would be contrary to providing reasonable assurance of adequate 

protection of the public health and safety. 

`(iii) After receiving a request for a hearing under clause (i), the Commission expeditiously shall either 

deny or grant the request. If the request is granted, the Commission shall determine, after considering 

petitioners' prima facie showing and any answers thereto, whether during a period of interim operation, 

there will be reasonable assurance of adequate protection of the public health and safety. If the 

Commission determines that there is such reasonable assurance, it shall allow operation during an 

interim period under the combined license. 

`(iv) The Commission, in its discretion, shall determine appropriate hearing procedures, whether 

informal or formal adjudicatory, for any hearing under clause (i), and shall state its reasons therefor. 

`(v) The Commission shall, to the maximum possible extent, render a decision on issues raised by the 

hearing request within 180 days of the publication of the notice provided by clause (i) or the anticipated 

date for initial loading of fuel into the reactor, whichever is later. Commencement of operation under a 

combined license is not subject to subparagraph (A).'. 

SEC. 2803. RULEMAKING. 

The Nuclear Regulatory Commission shall modify part 52 of title 10, Code of Federal Regulations, to 

conform with sections 185 b. and 189 a. (1)(B) of the Atomic Energy Act of 1954, as added by sections 

2801 and 2802 of this Act, not later than 1 year after the date of the enactment of this Act. 

SEC. 2804. AMENDMENT OF A COMBINED LICENSE PENDING A HEARING. 

Section 189 a. (2) of the Atomic Energy Act of 1954 (42 U.S.C. 2239(a)(2)) is amended by inserting `or 

any amendment to a combined construction and operating license' after `any amendment to an operating 

license' each time it occurs. 

SEC. 2805. JUDICIAL REVIEW. 

Section 189 b. of the Atomic Energy Act of 1954 (42 U.S.C. 2239(b)) is amended by inserting `or any 

final order allowing or prohibiting a facility to begin operating under a combined construction and 

operating license' before `shall be subject to judicial review'. 

SEC. 2806. EFFECT ON PENDING PROCEEDINGS. 

Sections 185 b. and 189 a. (1)(B) of the Atomic Energy Act of 1954, as added by sections 2801 and 2802 

of this Act, shall apply to all proceedings involving a combined license for which an application was 

filed after May 8, 1991, under such sections.

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SEC. 2807. CONFORMING AMENDMENT. 

The table of contents of the Atomic Energy Act of 1954 is amended by amending the item related to 

section 185 to read as follows: 

`Sec. 185. Construction Permits and Operating Licenses.'. 

TITLE XXIX--ADDITIONAL NUCLEAR ENERGY PROVISIONS 

SEC. 2901. STATE AUTHORITY TO REGULATE RADIATION BELOW LEVEL OF NRC 

REGULATORY CONCERN. 

(a) IN GENERAL- The Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.) is amended by inserting 

after section 275 the following new section: 

`SEC. 276. STATE AUTHORITY TO REGULATE RADIATION BELOW LEVEL OF REGULATORY 

CONCERN OF NUCLEAR REGULATORY COMMISSION. 

`(a) IN GENERAL- No provision of this Act, or of the Low-Level Radioactive Waste Policy Act, may 

be construed to prohibit or otherwise restrict the authority of any State to regulate, on the basis of 

radiological hazard, the disposal or off-site incineration of low-level radioactive waste, if the Nuclear 

Regulatory Commission, after the date of the enactment of the Energy Policy Act of 1992 exempts such 

waste from regulation. 

`(b) RELATION TO OTHER STATE AUTHORITY- This section may not be construed to imply 

preemption of existing State authority. Except as expressly provided in subsection (a), this section may 

not be construed to confer on any State any additional authority to regulate activities licensed by the 

Nuclear Regulatory Commission. 

`(c) DEFINITIONS- For purposes of this section: 

`(1) The term `low-level radioactive waste' means radioactive material classified by the Nuclear 

Regulatory Commission as low-level radioactive waste on the date of the enactment of the Energy 

Policy Act of 1992. 

`(2) The term `off-site incineration' means any incineration of radioactive materials at a facility 

that is located off the site where such materials were generated. 

`(3) The term `State' means each of the several States, the District of Columbia, and any 

commonwealth, territory, or possession of the United States.'. 

(b) REVOCATION OF RELATED NRC POLICY STATEMENTS- The policy statements of the 

Nuclear Regulatory Commission published in the Federal Register on July 3, 1990 (55 Fed. Reg. 27522) 

and August 29, 1986 (51 Fed. Reg. 30839), relating to radioactive waste below regulatory concern, shall 

have no effect after the date of the enactment of this Act. 

(c) CONFORMING AMENDMENT- The table of contents of the Atomic Energy Act of 1954 (42 

U.S.C. 2011 prec.) is amended by inserting after the item relating to section 275 the following new item: 

`Sec. 276. State authority to regulate radiation below level of regulatory concern of Nuclear 

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Regulatory Commission.'. 

SEC. 2902. EMPLOYEE PROTECTION FOR NUCLEAR WHISTLEBLOWERS. 

(a) INTERNAL WHISTLEBLOWERS; EMPLOYERS- Section 210(a) of the Energy Reorganization 

Act of 1974 (42 U.S.C. 5851(a)) is amended-- 

(1) by inserting `(1)' after `SEC. 210. (a)'; 

(2) by striking `, including' and all that follows through `licensee or applicant,'; 

(3) by inserting after the dash the following new subparagraphs: 

`(A) notified his employer of an alleged violation of this Act or the Atomic Energy Act of 1954 

(42 U.S.C. 2011 et seq.); 

`(B) refused to engage in any practice made unlawful by this Act or the Atomic Energy Act of 

1954, if the employee has identified the alleged illegality to the employer; 

`(C) testified before Congress or at any Federal or State proceeding regarding any provision (or 

proposed provision) of this Act or the Atomic Energy Act of 1954;'; 

(4) by redesignating paragraphs (1) through (3) as subparagraphs (D) through (F), respectively; 

and 

(5) by adding at the end the following new paragraph: 

`(2) For purposes of this section, the term `employer' includes-- 

`(A) a licensee of the Commission or of an agreement State under section 274 of the Atomic 

Energy Act of 1954 (42 U.S.C. 2021); 

`(B) an applicant for a license from the Commission or such an agreement State; 

`(C) a contractor or subcontractor of such a licensee or applicant; and 

`(D) a contractor or subcontractor of the Department of Energy that is indemnified by the 

Department under section 170 d. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)), but such 

term shall not include any contractor or subcontractor covered by Executive Order No. 12344.'. 

(b) TIME PERIOD FOR FILING COMPLAINT- Section 210(b)(1) of the Energy Reorganization Act of 

1974 (42 U.S.C. 5851(b)(1)) is amended by striking `thirty days' and inserting `180 days'. 

(c) INTERIM RELIEF- Section 210(b)(2)(A) of the Energy Reorganization Act of 1974 (42 U.S.C. 5851

(b)(2)(A)) is amended by inserting before the last sentence the following: `Upon the conclusion of such 

hearing and the issuance of a recommended decision that the complaint has merit, the Secretary shall 

issue a preliminary order providing the relief prescribed in subparagraph (B), but may not order 

compensatory damages pending a final order.'. 

(d) AVOIDANCE OF FRIVOLOUS COMPLAINTS- Section 210(b) of the Energy Reorganization Act 

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of 1974 (42 U.S.C. 5851(b)) is amended by adding at the end the following new paragraph: 

`(3)(A) The Secretary shall dismiss a complaint filed under paragraph (1), and shall not conduct the 

investigation required under paragraph (2), unless the complainant has made a prima facie showing that 

any behavior described in subparagraphs (A) through (F) of subsection (a)(1) was a contributing factor in 

the unfavorable personnel action alleged in the complaint. 

`(B) Notwithstanding a finding by the Secretary that the complainant has made the showing required by 

subparagraph (A), no investigation required under paragraph (2) shall be conducted if the employer 

demonstrates, by clear and convincing evidence, that it would have taken the same unfavorable 

personnel action in the absence of such behavior. 

`(C) The Secretary may determine that a violation of subsection (a) has occurred only if the complainant 

has demonstrated that any behavior described in subparagraphs (A) through (F) of subsection (a)(1) was 

a contributing factor in the unfavorable personnel action alleged in the complaint. 

`(D) Relief may not be ordered under paragraph (2) if the employer demonstrates by clear and 

convincing evidence that it would have taken the same unfavorable personnel action in the absence of 

such behavior.'. 

(e) NONPREEMPTION- Section 210 of the Energy Reorganization Act of 1974 (42 U.S.C. 5851) is 

amended by adding at the end the following new subsection: 

`(h) This section may not be construed to expand, diminish, or otherwise affect any right otherwise 

available to an employee under Federal or State law to redress the employee's discharge or other 

discriminatory action taken by the employer against the employee.'. 

(f) POSTING REQUIREMENT- Section 210 of the Energy Reorganization Act of 1974 (42 U.S.C. 

5851) is further amended by adding at the end the following new subsection: 

`(i) The provisions of this section shall be prominently posted in any place of employment to which this 

section applies.'. 

(g) DUTY OF NRC TO INVESTIGATE SUBSTANTIVE ALLEGATIONS- Section 210 of the Energy 

Reorganization Act of 1974 (42 U.S.C. 5851) is further amended by adding at the end the following new 

subsection: 

`(j)(1) The Commission or the Department of Energy shall not delay taking appropriate action with 

respect to an allegation of a substantial safety hazard on the basis of-- 

`(A) the filing of a complaint under subsection (b)(1) arising from such allegation; or 

`(B) any investigation by the Secretary, or other action, under this section in response to such 

complaint. 

`(2) A determination by the Secretary under this section that a violation of subsection (a) has not 

occurred shall not be considered by the Commission or the Department of Energy in its determination of 

whether a substantial safety hazard exists.'. 

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(1) The title heading of title II of the Energy Reorganization Act of 1974 (42 U.S.C. 5841 et seq.) 

is amended to read as follows: 

`TITLE II--NUCLEAR REGULATORY COMMISSION; NUCLEAR WHISTLEBLOWER 

PROTECTION'. 

(2) Section 210(b)(1) of the Energy Reorganization Act of 1974 (42 U.S.C. 5851(b)(1)) is 

amended-- 

(A) by striking `(hereinafter in this subsection referred to as the `Secretary')' and inserting `

(in this section referred to as the `Secretary')'; and 

(B) by striking `and the Commission' and inserting `, the Commission, and the Department 

of Energy'. 

(3) The second of the two sections of the Energy Reorganization Act of 1974 that is numbered 210 

(42 U.S.C. 5851) is redesignated as section 211. 

(i) APPLICABILITY- The amendments made by this section shall apply to claims filed under section 

211(b)(1) of the Energy Reorganization Act of 1974 (42 U.S.C. 5851(b)(1)) on or after the date of the 

enactment of this Act. 

SEC. 2903. EXEMPTION OF CERTAIN RESEARCH AND EDUCATIONAL LICENSEES FROM 

ANNUAL CHARGES. 

(a) IN GENERAL- Section 6101(c) of the Omnibus Budget Reconciliation Act of 1990 (42 U.S.C. 2214

(c)) is amended-- 

(1) in paragraph (1), by striking `Any licensee' and inserting `Except as provided in paragraph (4), 

any licensee'; and 

(2) by adding at the end the following new paragraph: 

`(4) EXEMPTION- 

`(A) IN GENERAL- Paragraph (1) shall not apply to the holder of any license for a federally 

owned research reactor used primarily for educational training and academic research 

purposes. 

`(B) RESEARCH REACTOR- For purposes of subparagraph (A), the term `research reactor' 

means a nuclear reactor that-- 

`(i) is licensed by the Nuclear Regulatory Commission under section 104 c. of the 

Atomic Energy Act of 1954 (42 U.S.C. 2134(c)) for operation at a thermal power 

level of 10 megawatts or less; and 

`(ii) if so licensed for operation at a thermal power level of more than 1 megawatt, 

does not contain-- 

`(I) a circulating loop through the core in which the licensee conducts fuel 

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experiments; 

`(II) a liquid fuel loading; or 

`(III) an experimental facility in the core in excess of 16 square inches in crosssection.'. 

(b) APPLICABILITY- The amendments made subsection (a) shall apply to annual charges assessed 

under section 6101(c) of the Omnibus Budget Reconciliation Act of 1990 for fiscal year 1992 or any 

succeeding fiscal year. 

(c) POLICY REVIEW- The Nuclear Regulatory Commission shall review its policy for assessment of 

annual charges under section 6101(c) of the Omnibus Budget Reconciliation Act of 1990, solicit public 

comment on the need for changes to such policy, and recommend to the Congress such changes in 

existing law as the Commission finds are needed to prevent the placement of an unfair burden on certain 

licensees of the Commission, in particular those that hold licenses to operate federally owned research 

reactors used primarily for educational training and academic research purposes. 

SEC. 2904. STUDY AND IMPLEMENTATION PLAN ON SAFETY OF SHIPMENTS OF PLUTONIUM 

BY SEA. 

(a) STUDY- The President, in consultation with the Nuclear Regulatory Commission, shall conduct a 

study on the safety of shipments of plutonium by sea. The study shall consider the following: 

(1) The safety of the casks containing the plutonium. 

(2) The safety risks to the States of such shipments. 

(3) Upon the request of any State, the adequacy of that State's emergency plans with respect to 

such shipments. 

(4) The Federal resources needed to assist the States on account of such shipments. 

(b) REPORT- The President shall, not later than 60 days after the date of the enactment of this Act, 

transmit to the Congress a report on the study conducted under subsection (a), together with his 

recommendations based on the study. 

(c) IMPLEMENTATION PLAN- The President, in consultation with the Nuclear Regulatory 

Commission, shall establish a plan to implement the recommendations contained in the study conducted 

under subsection (a) and shall, not later than 90 days after transmitting the report to the Congress under 

subsection (b), transmit to the Congress that implementation plan. 

(d) DEFINITION- As used in this section, the term `State' includes the District of Columbia and any 

commonwealth, territory, or possession of the United States. 

TITLE XXX--MISCELLANEOUS 

Subtitle A--General Provisions 

SEC. 3001. RESEARCH, DEVELOPMENT, DEMONSTRATION, AND COMMERCIAL APPLICATION 

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ACTIVITIES. 

(a) RESEARCH, DEVELOPMENT, AND DEMONSTRATION- (1) Except as otherwise provided in 

this Act, research, development, and demonstration activities under this Act may be carried out under the 

procedures of the Federal Nonnuclear Research and Development Act of 1974 (42 U.S.C. 5901-5920), 

the Atomic Energy Act of 1954 (42 U.S.C. 2011 et seq.), or any other Act under which the Secretary is 

authorized to carry out such activities, but only to the extent the Secretary is authorized to carry out such 

activities under each such Act. An objective of any demonstration program under this Act shall be to 

determine the technical and commercial feasibility of energy technologies. 

(2) Except as otherwise provided in this Act, in carrying out research, development, and demonstration 

programs and activities under this Act, the Secretary may use, to the extent authorized under applicable 

provisions of law, contracts, cooperative agreements, cooperative research and development agreements 

under the Stevenson-Wydler Technology Innovation Act of 1980, grants, joint ventures, and any other 

form of agreement available to the Secretary. 

(b) COMMERCIAL APPLICATION- Except as otherwise provided in this Act, in carrying out 

commercial application programs and commercial application activities under this Act, the Secretary 

may use, to the extent authorized under applicable provisions of law, contracts, cooperative agreements, 

cooperative research and development agreements under the Stevenson-Wydler Technology Innovation 

Act of 1980, grants, joint ventures, and any other form of agreement available to the Secretary. An 

objective of any commercial application program under this Act shall be to accelerate the transition of 

technologies from the research and development stage. 

(c) DEFINITION- For purposes of this section, the term `joint venture' has the meaning given the term 

`joint research and development venture' under section 2(a)(6) and (b) of the National Cooperative 

Research Act of 1984 (15 U.S.C. 4301(a)(6) and (b)), except that such term may apply under this section 

to research, development, demonstration, and commercial application joint ventures. 

(d) PROTECTION OF INFORMATION- Section 12(c)(7) of the Stevenson-Wydler Technology 

Innovation Act of 1980, relating to the protection of information, shall apply to research, development, 

demonstration, and commercial application programs and activities under this Act. 

(e) GUIDELINES AND PROCEDURES- The Secretary shall provide guidelines and procedures for the 

transition, where appropriate, of energy technologies from research through development and 

demonstration under subsection (a) to commercial application under subsection (b). Nothing in this 

section shall preclude the Secretary from-- 

(1) entering into a contract, cooperative agreement, cooperative research and development 

agreement under the Stevenson-Wydler Technology Innovation Act of 1980, grant, joint venture, 

or any other form of agreement available to the Secretary under this section that relates to research, 

development, demonstration, and commercial application; or 

(2) extending a contract, cooperative agreement, cooperative research and development agreement 

under the Stevenson-Wydler Technology Innovation Act of 1980, grant, joint venture, or any other 

form of agreement available to the Secretary that relates to research, development, and 

demonstration to cover commercial application. 

(f) APPLICATION OF SECTION- This section shall not apply to any contract, cooperative agreement, 

cooperative research and development agreement under the Stevenson-Wydler Technology Innovation 

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Act of 1980, grant, joint venture, or any other form of agreement available to the Secretary that is in 

effect as of the date of the enactment of this Act. 

SEC. 3002. COST SHARING. 

(a) RESEARCH AND DEVELOPMENT- Except as otherwise provided in this Act, for research and 

development programs carried out under this Act, the Secretary shall require a commitment from nonFederal sources of at least 20 percent of the cost of the project. The Secretary may reduce or eliminate 

the non-Federal requirement under this subsection if the Secretary determines that the research and 

development is of a basic or fundamental nature. 

(b) DEMONSTRATION AND COMMERCIAL APPLICATION- Except as otherwise provided in this 

Act, the Secretary shall require at least 50 percent of the costs directly and specifically related to any 

demonstration or commercial application project under this Act to be provided from non-Federal 

sources. The Secretary may reduce the non-Federal requirement under this subsection if the Secretary 

determines that the reduction is necessary and appropriate considering the technological risks involved in 

the project and is necessary to meet the objectives of this Act. 

(c) CALCULATION OF AMOUNT- In calculating the amount of the non-Federal commitment under 

paragraph (1) or (2), the Secretary shall include cash, personnel, services, equipment, and other 

resources. 

(d) TENNESSEE VALLEY AUTHORITY- Funds derived by the Tennessee Valley Authority from its 

power program may be used for all or part of any cost sharing requirements under this section, except to 

the extent that such funds are provided by annual appropriation Acts. 

Subtitle B--Other Miscellaneous Provisions 

SEC. 3011. POWERPLANT AND INDUSTRIAL FUEL USE ACT OF 1978 REPEAL. 

Section 403(c) of the Powerplant and Industrial Fuel Use Act of 1978 (42 U.S.C. 8373(c)) is repealed. 

SEC. 3012. ALASKA NATURAL GAS TRANSPORTATION ACT OF 1976 REPEAL. 

(a) REPEAL- Section 7(a)(5) of the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719e(a)

(5)) is repealed. 

(b) ABOLITION OF OFFICE OF FEDERAL INSPECTOR OF CONSTRUCTION- The Office of 

Federal Inspector of Construction for the Alaska Natural Gas Transportation System, created pursuant to 

the paragraph repealed by subsection (a) of this section, is abolished. All functions and authority vested 

in the Inspector are hereby transferred to the Secretary of Energy. 

(c) REVOCATION OF CERTAIN OFI REGULATIONS- Regulations applicable to the Office of 

Federal Inspector of the Alaska Natural Gas Transportation System, as set forth in chapter 15 of title 10, 

Code of Federal Regulations, are hereby revoked. 

SEC. 3013. GEOTHERMAL HEAT PUMPS. 

The Secretary shall-- 

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(1) encourage States, municipalities, counties, and townships to consider allowing the installation 

of geothermal heat pumps, and, where applicable, and consistent with public health and safety, to 

permit public and private water recipients to utilize the flow of water from, and back into, public 

and private water mains for the purpose of providing sufficient water supply for the operation of 

residential and commercial geothermal heat pumps; and 

(2) not discourage any local authority which allows the use of geothermal heat pumps from-- 

(A) inspecting, at any reasonable time, geothermal heat pump connections to the water 

system to ensure the exclusive use of the public or private water supply to the geothermal 

heat pump system; and 

(B) requiring that geothermal heat pump systems be designed and installed in a manner that 

eliminates any risk of contamination to the public water supply. 

SEC. 3014. USE OF ENERGY FUTURES FOR FUEL PURCHASES. 

(a) FUEL STUDY- The Secretary shall conduct a study-- 

(1) to ascertain if the use of energy futures and options contracts could provide cost-effective 

protection for Government entities (including Government purchases for military purposes and for 

the Strategic Petroleum Reserve) and consumer cooperatives (or any organization whose purpose 

is to purchase fuel in bulk) from unanticipated surges in the price of fuel; and 

(2) to ascertain how such Government entities or consumer cooperatives may be educated in the 

prudent use of energy futures and options contracts to maximize their purchasing effectiveness, 

protect themselves against unanticipated surges in the price of fuel, and minimize fuel costs. 

(b) REPORT- The Secretary, no later than 12 months after the date of the enactment of this Act, shall 

transmit the study required in this section to the Committee on Energy and Commerce of the House of 

Representatives and the Committee on Energy and Natural Resources of the Senate. 

(c) PILOT PROGRAM- The Secretary shall conduct a pilot program, commencing not later than 30 days 

after the transmission of the study required in subsection (b), to educate such governmental entities, 

consumer cooperatives, or other organizations on the prudent and cost-effective use of energy futures 

and options contracts to increase their protection against unanticipated surges in the price of fuel and 

thereby increase the efficiency of their fuel purchase or assistance programs. 

(d) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary to carry 

out this section. 

SEC. 3015. ENERGY SUBSIDY STUDY. 

(a) IN GENERAL- The Secretary shall contract with the National Academy of Sciences to conduct a 

study of energy subsidies that-- 

(1) are in effect on the date of the enactment of this Act; or 

(2) have been in effect prior to the date of the enactment of this Act.

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(b) REPORT TO CONGRESS- Not later than 18 months after the date of the enactment of this Act, the 

Secretary shall transmit to the Congress, the results of such study to be accompanied by 

recommendations for legislation, if any. 

(c) CONTENTS- 

(1) IN GENERAL- The study shall identify and quantify the direct and indirect subsidies and other 

legal and institutional factors that influence decisions in the marketplace concerning fuels and 

energy technologies. 

(2) TOPICS FOR EXAMINATION- The study shall examine-- 

(A) fuel and technology choices that are-- 

(i) available on the date of the enactment of this Act; or 

(ii) reasonably foreseeable on the date of the enactment of this Act; 

(B) production subsidies for the extraction of raw materials; 

(C) subsidies encouraging investment in large capital projects; 

(D) indemnification; 

(E) fuel cycle subsidies, including waste disposal; 

(F) government research and development support; and 

(G) other relevant incentives and disincentives. 

(d) AUTHORIZATION OF APPROPRIATIONS- There are authorized to be appropriated to carry out 

this section $500,000 for each of the fiscal years 1993 and 1994. 

SEC. 3016. TAR SANDS. 

(a) POLICY- It is the policy of the United States to promote the development and production, by all 

means consistent with sound engineering, economic, and environmental practices, of deposits of tar 

sands. 

(b) DEFINITION- (1) For purposes of this section, the term `tar sands' means any consolidated or 

unconsolidated rock (other than coal, oil shale, or gilsonite) that either-- 

(A) contains a hydrocarbonaceous material with a gas-free viscosity, at original reservoir 

temperature, greater than 10,000 centipoise; or 

(B) contains a hydrocarbonaceous material and is produced by mining or quarrying. 

(2) Nothing in this section is intended or shall be construed to affect in any way the definition of the term 

tar sands under any other provision of Federal law.

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(c) STUDY- The Secretary, in consultation with the Secretary of the Interior, shall submit a study to the 

House of Representatives and the Committee on Energy and Natural Resources of the Senate within one 

year after the date of enactment of this Act. Such study shall identify and evaluate the development 

potential of sources of tar sands in the United States. The study shall also identify and evaluate processes 

for extracting oil from the identified tar sand sources, including existing tar sands waste tailings, and 

evaluate the environmental benefits of, and the potential for co-production of minerals and metals from, 

such processes. 

(d) AUTHORIZATION- There are authorized to be appropriated such sums as may be necessary for 

each of the fiscal years 1993 and 1994 to carry out this section. 

SEC. 3017. AMENDMENTS TO TITLE 11 OF THE UNITED STATES CODE. 

(a) DEFINITION- Section 101 of title 11, United States Code, is amended by inserting after paragraph 

(21) the following: 

`(21A) `farmout agreement' means a written agreement in which-- 

`(A) the owner of a right to drill, produce, or operate liquid or gaseous hydrocarbons on 

property agrees or has agreed to transfer or assign all or a part of such right to another entity; 

and 

`(B) such other entity (either directly or through its agents or its assigns), as consideration, 

agrees to perform drilling, reworking, recompleting, testing, or similar or related operations, 

to develop or produce liquid or gaseous hydrocarbons on the property;'. 

(b) PROPERTY OF THE ESTATE- Section 541(b) of title 11, United States Code, is amended-- 

(1) in paragraph (2) by striking `or' at the end, 

(2) in paragraph (3) by striking the period at the end and inserting `or', and 

(3) by adding at the end the following: 

`(4) any interest of the debtor in liquid or gaseous hydrocarbons to the extent that-- 

`(A) the debtor has transferred or has agreed to transfer such interest pursuant to a farmout 

agreement or any written agreement directly related to a farmout agreement; and 

`(B) but for the operation of this paragraph, the estate could include such interest only by 

virtue of section 365 or 544(a)(3) of this title. 

Paragraph (4) shall not be construed to exclude from the estate any consideration the debtor retains, 

receives, or is entitled to receive for transferring an interest in liquid or gaseous hydrocarbons pursuant 

to a farmout agreement.'. 

(c) EFFECTIVE DATE; APPLICATION OF AMENDMENTS- (1) Except as provided in paragraph (2), 

the amendments made by this section shall take effect on the date of the enactment of this Act. 

(2) The amendments made by this section shall not apply with respect to cases commenced under title 11 

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of the United States Code before the date of the enactment of this Act. 

SEC. 3018. RADIATION EXPOSURE COMPENSATION. 

Section 6 of the Radiation Exposure Compensation Act (42 U.S.C. 2210 note) is amended by adding at 

the end the following new subsection: 

`(l) JUDICIAL REVIEW- An individual whose claim for compensation under this Act is denied may 

seek judicial review solely in a district court of the United States. The court shall review the denial on 

the administrative record and shall hold unlawful and set aside the denial if it is arbitrary, capricious, an 

abuse of discretion, or otherwise not in accordance with law.'. 

SEC. 3019. STRATEGIC DIVERSIFICATION. 

The Office of Barter within the United States Department of Commerce and the Interagency Group on 

Countertrade shall within six months from the date of enactment report to the President and the Congress 

on the feasibility of using barter, countertrade and other self-liquidating finance methods to facilitate the 

strategic diversification of United States oil imports through cooperation with the former Soviet Union in 

the development of its energy resources. The report shall consider among other relevant topics the 

feasibility of trading American grown food for Soviet produced oil, minerals or energy. 

SEC. 3020. CONSULTATIVE COMMISSION ON WESTERN HEMISPHERE ENERGY AND 

ENVIRONMENT. 

(a) FINDINGS- The Congress finds that-- 

(1) there is growing mutual economic interdependence among the countries of the Western 

Hemisphere; 

(2) energy and environmental issues are intrinsically linked and must be considered together when 

formulating policy on the broader issue of sustainable economic development for the Western 

Hemisphere as a whole; 

(3) when developing their respective energy infrastructures, countries in the Western Hemisphere 

must consider existing and emerging environmental constraints, and do so in a way that results in 

sustainable long-term economic growth; 

(4) the coordination of respective national energy and environmental policies of the governments 

of the Western Hemisphere could be substantially improved through regular consultation among 

these countries; 

(5) the development, production and consumption of energy can affect environmental quality, and 

the environmental consequences of energy-related activities are not confined within national 

boundaries, but are regional and global in scope; 

(6) although the Western Hemisphere is richly endowed with indigenous energy resources, an 

insufficient energy supply would severely constrain future opportunities for sustainable economic 

development and growth in each of these member countries; and 

(7) the energy markets of the United States are linked with those in other countries of the Western 

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Hemisphere and the world. 

(b) DEFINITION- For purposes of this section, the term `Commission' means the Consultative 

Commission on Western Hemisphere Energy and Environment. 

(c) NEGOTIATIONS- The President is authorized to direct the United States representative to the 

Organization of American States to initiate negotiations with the Organization of American States for the 

establishment of a Consultative Commission on Western Hemisphere Energy and Environment under the 

auspices of the Organization of American States. 

(d) THE COMMISSION- In the course of the negotiations, the following shall be pursued: 

(1) OBJECTIVES- The objectives of the Commission shall be-- 

(A) to evaluate from the viewpoint of the Western Hemisphere as a whole the energy and 

environmental situations, trends, and policies of the countries of the participating 

governments necessary to support sustainable economic development; 

(B) to recommend to the participating governments actions, policies, and institutional 

arrangements that will enhance cooperation and policy coordination among their respective 

countries in the future development and use of indigenous energy resources and 

technologies, and in the future development and implementation of measures to protect the 

environment of the Western Hemisphere; and 

(C) to recommend to the participating governments actions and policies that will enhance 

energy and environmental cooperation and coordination among the countries of the Western 

Hemisphere and the world. 

(2) COMPOSITION OF THE COMMISSION- The Commission shall include representatives of-- 

(A) the respective foreign energy and environmental ministries or departments of the 

participating governments; 

(B) the parliamentary or legislative bodies with legislative responsibilities for energy and 

environmental matters; and 

(C) other governmental and non-governmental observers appointed by the heads of each 

participating government on the basis of their experience and expertise. 

(3) SECRETARIAT- A small secretariat shall be chosen by the participating governments for their 

expertise in the areas of energy and the environment. 

(4) SUNSET PROVISION- The Commission's authority-- 

(A) shall terminate five years from the date of the agreement under which it was created; 

and 

(B) may be extended for a five-year term at the expiration of the previous term by agreement 

of the participating governments.

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(e) REPORT- The President shall, within one year after the date of enactment of this Act, report to the 

Committee on Energy and Commerce and the Committee on Foreign Affairs of the House of 

Representatives, and to the Committee on Energy and Natural Resources and the Committee on Foreign 

Relations of the Senate, on the progress toward the establishment of the Commission and achievement of 

the purposes of this section. 

SEC. 3021. DISADVANTAGED BUSINESS ENTERPRISES. 

(a) GENERAL RULE- To the extent practicable, the head of each agency shall provide that the 

obligation of not less than 10 percent of the total combined amounts obligated for contracts and 

subcontracts by each agency under this Act and amendments made by this Act pursuant to competitive 

procedures within the meaning of either the Federal Property and Administrative Services Act of 1949 

(41 U.S.C. 251 et seq.), or chapter 137 of title 10, United States Code, shall be expended either with-- 

(1) small business concerns controlled by socially and economically disadvantaged individuals or 

women; 

(2) historically Black colleges and universities; or 

(3) colleges and universities having a student body in which more than 20 percent of the students 

are Hispanic Americans or Native Americans. 

(b) DEFINITIONS- For purposes of this section, the following definitions shall apply: 

(1) The term `small business concern' has the meaning such term has under section 3 of the Small 

Business Act (15 U.S.C. 632). However, for purposes of contracts and subcontracts requiring 

engineering services the applicable size standard shall be that established for military and 

aerospace equipment and military weapons. 

(2) The term `socially and economically disadvantaged individuals' has the meaning such term has 

under section 8(d) of the Small Business Act (15 U.S.C. 637(d)) and relevant subcontracting 

regulations promulgated pursuant thereto. 

Speaker of the House of Representatives. 

Vice President of the United States and 

President of the Senate. 

END

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