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[Senate Report 108-43]
[From the U.S. Government Publishing Office]

108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-43
======================================================================

                                                        Calendar No. 87

                     THE ENERGY POLICY ACT OF 2003

                               __________

                              R E P O R T

                                 of the

                              COMMITTEE ON

                      ENERGY AND NATURAL RESOURCES

                          UNITED STATES SENATE

                              to accompany

                                S. 1005

                             together with

                             MINORITY VIEWS

                  May 6, 2003.--Ordered to be printed
               COMMITTEE ON ENERGY AND NATURAL RESOURCES

                            (108th Congress)
                 PETE V. DOMENICI, New Mexico, Chairman
DON NICKLES, Oklahoma                JEFF BINGAMAN, New Mexico
LARRY E. CRAIG, Idaho                DANIEL K. AKAKA, Hawaii
BEN NIGHTHORSE CAMPBELL, Colorado    BYRON L. DORGAN, North Dakota
CRAIG THOMAS, Wyoming                BOB GRAHAM, Florida
LAMAR ALEXANDER, Tennessee           RON WYDEN, Oregon
LISA MURKOWSKI, Alaska               TIM JOHNSON, South Dakota
JAMES M. TALENT, Missouri            MARY L. LANDRIEU, Louisiana
CONRAD BURNS, Montana                EVAN BAYH, Indiana
GORDON SMITH, Oregon                 DIANNE FEINSTEIN, California
JIM BUNNING, Kentucky                CHARLES E. SCHUMER, New York
JON KYL, Arizona                     MARIA CANTWELL, Washington
                       Alex Flint, Staff Director
                     James P. Beirne, Chief Counsel
               Robert M. Simon, Democratic Staff Director
                Sam E. Fowler, Democratic Chief Counsel

                            C O N T E N T S

                              ----------                              
                                                                   Page
Purpose of the Measure...........................................    00
Summary of Major Provisions......................................    00
Background and Need..............................................    00
Legislative History..............................................    00
Committee Recommendation and Tabulation of Votes.................    00
Section-by-Section Analysis......................................    00
Cost and Budgetary Considerations................................    00
Regulatory Impact Evaluation.....................................    00
Executive Communications.........................................    00
Minority Views...................................................    00
Changes in Existing Law..........................................    00
    Mineral Leasing Act..........................................    00
    Federal Power Act............................................    00
    Public Utility Holding Company Act of 1935...................    00
    United States Housing Act of 1937............................    00
    Natural Gas Act..............................................    00
    National Housing Act.........................................    00
    Outer Continental Shelf Lands Act............................    00
    Atomic Energy Act of 1954....................................    00
    Solid Waste Disposal Act.....................................    00
    Geothermal Steam Act.........................................    00
    Housing and Community Development Act of 1974................    00
    Energy Policy and Conservation Act...........................    00
    Energy Conservation and Production Act.......................    00
    Alaska Natural Gas Transportation Act of 1976................    00
    Department of Energy Organization Act........................    00
    Public Utility Regulatory Policies Act of 1978...............    00
    National Energy Conservation Policy Act......................    00
    Department of Energy Science Education Enhancement Act.......    00
    Spark M. Matsunaga Hydrogen Research, Development, and 
      Demonstration Act of 1990..................................    00
    Cranston-Gonzalez National Affordable Housing Act............    00
    High-Performance Computing Act of 1991.......................    00
    Energy Policy Act of 1992....................................    00
    HUD Demonstration Act of 1993................................    00
    North American Free Trade Agreement Implementation Act.......    00
    USEC Privatization Act.......................................    00
    Native American Housing Assistance and Self-Determination Act    00
    Legislative Branch Appropriations Act, 1999..................    00
    Energy Act of 2000...........................................    00
    Title 5, United States Code..................................    00
    Title 23, United States Code.................................    00
    Title 49, United States Code.................................    00

                                                        Calendar No. 87
108th Congress                                                   Report
                                 SENATE
 1st Session                                                     108-43

======================================================================

 
                     THE ENERGY POLICY ACT OF 2003

                                _______
                                

                  May 6, 2003.--Ordered to be printed

                                _______
                                

   Mr. Domenici, from the Committee on Energy and Natural Resources, 
                        submitted the following

                              R E P O R T

                             Together With

                             MINORITY VIEWS

                         [To accompany S. 1005]

    The Committee on Energy and Natural Resources, having 
considered the same, reports favorably thereon, and original 
bill (S. 1005) to enhance the energy security of the United 
States, and for other purposes, and recommends that the bill do 
pass.
    The text of the bill follows:

SECTION 1. SHORT TITLE.

  This Act may be cited as ``The Energy Policy Act of 2003''.

SEC. 2. TABLE OF CONTENTS.

  The table of contents for this Act is as follows:

Sec. 1. Short title.
Sec. 2. Table of contents.

                          TITLE I--OIL AND GAS

                   Subtitle A--Production Incentives

Sec. 101. Permanent authority to operate the strategic petroleum 
reserve and other energy programs.
Sec. 102. Study on inventory of petroleum and natural gas storage.
Sec. 103. Program on oil and gas royalties in kind.
Sec. 104. Marginal property production incentives.
Sec. 105. Comprehensive inventory of OCS oil and natural gas resources.
Sec. 106. Royalty relief for deep water production.
Sec. 107. Alaska offshore royalty suspension.
Sec. 108. Orphaned, abandoned, or idled wells on federal lands.
Sec. 109. Incentives for natural gas production from deep wells in the 
shallow waters of the Gulf of Mexico.
Sec. 110. Alternate energy-related uses on the outer continental shelf.
Sec. 111. Coastal impact assistance.
Sec. 112. National energy resource database.
Sec. 113. Oil and gas lease acreage limitation.
Sec. 114. Assessment of dependence of State of Hawaii on oil.

                  Subtitle B--Access to Federal Lands

Sec. 121. Office of Federal Energy Permit Coordination.
Sec. 122. Pilot project to improve Federal permit coordination.
Sec. 123. Federal onshore leasing programs for oil and gas.
Sec. 124. Estimates of oil and gas resources underlying onshore Federal 
lands.
Sec. 125. Split-estate Federal oil and gas leasing and development 
practices.
Sec. 126. Coordination of Federal agencies to establish priority energy 
transmission rights-of-way.

                Subtitle C--Alaska Natural Gas Pipeline

Sec. 131. Short title.
Sec. 132. Definitions.
Sec. 133. Issuance of Certificate of Public Convenience and Necessity.
Sec. 134. Environmental reviews.
Sec. 135. Pipeline expansion.
Sec. 136. Federal coordinator.
Sec. 137. Judicial review.
Sec. 138. State jurisdiction over in-state delivery of natural gas.
Sec. 139. Study of alternative means of construction.
Sec. 140. Clarification of ANGTA status and authorities.
Sec. 141. Sense of Congress.
Sec. 142. Participation of small business concerns.
Sec. 143. Alaska Pipeline Construction Training Program.
Sec. 144. Loan guarantee.
Sec. 145. Sense of Congress on natural gas demand.

                             TITLE II--COAL

                Subtitle A--Clean Coal Power Initiative

Sec. 201. Authorization of appropriations.
Sec. 202. Project criteria.
Sec. 203. Reports.
Sec. 204. Clean coal centers of excellence.

                    Subtitle B--Federal Coal Leases

Sec. 211. Repeal of the 160-acre limitation for coal leases.
Sec. 212. Mining plans.
Sec. 213. Payment of advance royalties under coal leases.
Sec. 214. Elimination of deadline for submission of coal lease 
operation and reclamation plan.
Sec. 215. Application of amendments.

                     Subtitle C--Powder River Basin

Sec. 221. Resolution of Federal resource development conflicts in the 
Powder River Basin.

                        TITLE III--INDIAN ENERGY

Sec. 301. Short title.
Sec. 302. Office of Indian Energy Policy and Programs.
Sec. 303. Indian energy.

                      ``TITLE XXVI--INDIAN ENERGY.

        ``Sec. 2601. Definitions.
        ``Sec. 2602. Indian Tribal energy resource development.
        ``Sec. 2603. Indian Tribal energy resource regulation.
        ``Sec. 2604. Leases, business agreements, and rights-of-way 
                        involving energy development or transmission.
        ``Sec. 2605. Federal power marketing administrations.
        ``Sec. 2606. Indian mineral development review.
        ``Sec. 2607. Wind and hydropower feasibility study.
Sec. 304. Four Corners transmission line project.
Sec. 305. Energy efficiency in federally assisted housing.
Sec. 306. Consultation with Indian Tribes.

                           TITLE IV--NUCLEAR

                 Subtitle A--Price-Anderson Amendments

Sec. 401. Short title.
Sec. 402. Extension of indemnification authority.
Sec. 403. Maximum assessment.
Sec. 404. Department of Energy Liability Limit.
Sec. 405. Incidents outside the United States.
Sec. 406. Reports.
Sec. 407. Inflation adjustment.
Sec. 408. Treatment of modular reactors.
Sec. 409. Applicability.
Sec. 410. Civil penalties.

          Subtitle B--Deployment of Commercial Nuclear Plants

Sec. 421. Short title.
Sec. 422. Definitions.
Sec. 423. Responsibilities of the Secretary of Energy.
Sec. 424. Limitations.
Sec. 425. Regulations.

      Subtitle C--Advanced Reactor Hydrogen Co-Generation Project

Sec. 431. Project establishment.
Sec. 432. Project definition.
Sec. 433. Project management.
Sec. 434. Project requirements.
Sec. 435. Authorization of appropriations.

                   Subtitle D--Miscellaneous Matters

Sec. 441. Uranium sales and transfers.
Sec. 442. Decommissioning Pilot Program.

                       TITLE V--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Sec. 501. Assessment of renewable energy resources.
Sec. 502. Renewable energy production incentive.
Sec. 503. Renewable energy on Federal lands.
Sec. 504. Federal purchase requirement.
Sec. 505. Insular area renewable and energy efficient plans.

                 Subtitle B--Hydroelectric Relicensing

Sec. 511. Alternative conditions and fishways.

                     Subtitle C--Geothermal Energy

Sec. 521. Competitive lease sale requirements.
Sec. 522. Geothermal leasing and permitting on Federal lands.
Sec. 523. Leasing and permitting on Federal lands withdrawn for 
military purposes.
Sec. 524. Reinstatement of leases terminated for failure to pay rent.
Sec. 525. Royalty reduction and relief.
Sec. 526. Royalty exemption for direct use of low temperature 
geothermal energy resources.

                       Subtitle D--Biomass Energy

Sec. 531. Definitions.
Sec. 532. Biomass Commercial Utilization Grant Program.
Sec. 533. Improved Biomass Utilization Grant Program.
Sec. 534. Report.

                      TITLE VI--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Sec. 601. Energy management requirements.
Sec. 602. Energy use measurement and accountability.
Sec. 603. Federal building performance standards.
Sec. 604. Energy savings performance contracts.
Sec. 605. Procurement of energy efficient products.
Sec. 606. Congressional building efficiency.
Sec. 607. Increased Federal use of recovered mineral components in 
federally funded projects involving procurement of cement or concrete.
Sec. 608. Utility energy service contracts.
Sec. 609. Study of energy efficiency standards.

                  Subtitle B--State and Local Programs

Sec. 611. Low Income Community Energy Efficiency Pilot Program.
Sec. 612. Energy efficient public buildings.
Sec. 613. Energy efficient appliance rebate programs.

                     Subtitle C--Consumer Products

Sec. 621. Energy conservation standards for additional products.
Sec. 622. Energy labeling.
Sec. 623. Energy Star Program.
Sec. 624. HVAC Maintenance Consumer Education Program.

                       Subtitle D--Public Housing

Sec. 631. Capacity Building for energy-efficient, affordable housing.
Sec. 632. Increase of CDBG public services cap for energy conservation 
and efficiency activities.
Sec. 633. FHA mortgage insurance incentives for energy efficient 
housing.
Sec. 634. Public Housing Capital Fund.
Sec. 635. Grants for energy-conserving improvements for assisted 
housing.
Sec. 636. North American Development Bank.
Sec. 637. Energy-efficient appliances.
Sec. 638. Energy efficiency standards.
Sec. 639. Energy strategy for HUD.

                    TITLE VII--TRANSPORTATION FUELS

                 Subtitle A--Alternative Fuel Programs

Sec. 701. Use of alternative fuels by dual-fueled vehicles.
Sec. 702. Fuel use credits.
Sec. 703. Neighborhood electric vehicles.
Sec. 704. Credits for medium and heavy duty dedicated vehicles.
Sec. 705. Alternative fuel infrastructure.
Sec. 706. Incremental cost allocation.
Sec. 707. Review of alternative fuel programs.
Sec. 708. High occupancy vehicle exception.
Sec. 709. Alternate compliance and flexibility.

                  Subtitle B--Automobile Fuel Economy

Sec. 711. Automobile fuel economy standards.
Sec. 712. Dual-fueled automobiles.
Sec. 713. Federal fleet fuel economy.
Sec. 714. Railroad efficiency.
Sec. 715. Reduction of engine idling in heavy-use vehicles.

                          TITLE VIII--HYDROGEN

                  Subtitle A--Basic Research Programs

Sec. 801. Short title.
Sec. 802. Matsunaga Act amendment.
Sec. 803. Hydrogen transportation and fuel initiative.
Sec. 804. Interagency Task Force and Coordination Plan.
Sec. 805. Review by the National Academies.

                   Subtitle B--Demonstration Programs

Sec. 811. Definitions.
Sec. 812. Hydrogen Vehicle Demonstration Program.
Sec. 813. Stationary Fuel Cell Demonstration Program.
Sec. 814. Hydrogen demonstration programs in National Parks.
Sec. 815. International Demonstration Program.
Sec. 816. Tribal stationary hybrid power demonstration.
Sec. 817. Distributed Generation Pilot Program.

                      Subtitle C--Federal Programs

Sec. 821. Public education and training.
Sec. 822. Hydrogen transition strategic planning.
Sec. 823. Minimum Federal fleet requirement.
Sec. 824. Stationary fuel cell purchase requirement.
Sec. 825. Department of Energy Strategy.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Sec. 901. Short title.
Sec. 902. Goals.
Sec. 903. Definitions.

                     Subtitle A--Energy Efficiency

Sec. 911. Energy efficiency.
Sec. 912. Next generation lighting initiative.
Sec. 913. National building performance initiative.
Sec. 914. Secondary Electric Vehicle Battery Use Program.
Sec. 915. Energy efficiency science initiative.

       Subtitle B--Distributed Energy and Electric Energy Systems

Sec. 921. Distributed energy and electric energy systems.
Sec. 922. Hybrid distributed power systems.
Sec. 923. High Power Density Industry Program.
Sec. 924. Micro-cogeneration energy technology.
Sec. 925. Distributed Energy Technology Demonstration Program.
Sec. 926. Office of Electric Transmission and Distribution.
Sec. 927. Electric transmission and distribution programs.

                      Subtitle C--Renewable Energy

Sec. 931. Renewable energy.
Sec. 932. Bioenergy programs.
Sec. 933. Biodiesel Engine Testing Program.
Sec. 934. Concentrating Solar Power Research Program.
Sec. 935. Miscellaneous projects.

                       Subtitle D--Nuclear Energy

Sec. 941. Nuclear energy.
Sec. 942. Nuclear energy research programs.
Sec. 943. Advanced fuel cycle initiative.
Sec. 944. University nuclear science and engineering support.
Sec. 945. Security of nuclear facilities.
Sec. 946. Alternatives to industrial radioactive sources.

                       Subtitle E--Fossil Energy

Sec. 951. Fossil energy.
Sec. 952. Oil and gas research programs.
Sec. 953. Research and development for coal mining technologies.
Sec. 954. Coal and Related Technologies Program.
Sec. 955. Complex well technology testing facility.

                          Subtitle F--Science

Sec. 961. Science.
Sec. 962. United States participation in ITER.
Sec. 963. Spallation neutron source.
Sec. 964. Support for science and energy facilities and infrastructure.
Sec. 965. Catalysis Research Program.
Sec. 966. Nanoscale science and engineering research.
Sec. 967. Advanced scientific computing for energy missions.
Sec. 968. Genomes to Life Program.
Sec. 969. Fission and Fusion Energy Materials Research Program.
Sec. 970. Energy-Water Supply Technologies Program.

                   Subtitle G--Energy and Environment

Sec. 971. United States-Mexico energy technology cooperation.
Sec. 972. Coal technology loan.

                         Subtitle H--Management

Sec. 981. Availability of funds.
Sec. 982. Cost sharing.
Sec. 983. Merit review of proposals.
Sec. 984. External technical review of departmental programs.
Sec. 985. Improved coordination of technology transfer activities.
Sec. 986. Technology Infrastructure Program.
Sec. 987. Small business advocacy and assistance.
Sec. 988. Mobility of scientific and technical personnel.
Sec. 989. National Academy of Sciences report.
Sec. 990. Outreach.
Sec. 991. Competitive award of management contracts.
Sec. 992. Reprogramming.
Sec. 993. Construction with other laws.
Sec. 994. Improved coordination and management of civilian science and 
technology programs.
Sec. 995. Educational programs in science and mathematics.
Sec. 996. Other transactions authority.
Sec. 997. Report on research and development program evaluation 
methodologies.

                    TITLE X--PERSONNEL AND TRAINING

Sec. 1001. Workforce trends and traineeship grants.
Sec. 1002. Research fellowships in energy research.
Sec. 1003. Training guidelines for electric energy industry personnel.
Sec. 1004. National Center on Energy Management and Building 
Technologies.
Sec. 1005. Improved access to energy-related scientific and technical 
careers.
Sec. 1006. National Power Plant Operations Technology and Education 
Center.
Sec. 1007. Federal mine inspectors.

                         TITLE XI--ELECTRICITY

Sec. 1101. Definitions.

                        Subtitle A--Reliability

Sec. 1111. Electric reliability standards.

                      Subtitle B--Regional Markets

Sec. 1121. Implementation date for proposed rulemaking for standard 
market design.
Sec. 1122. Sense of the Congress on regional transmission 
organizations.
Sec. 1123. Federal utility participation in regional transmission 
organizations.
Sec. 1124. Regional consideration of competitive wholesale markets.

   Subtitle C--Improving Transmission Access and Protecting Service 
                              Obligations

Sec. 1131. Service obligation security and parity.
Sec. 1132. Open non-discriminatory access.
Sec. 1133. Transmission infrastructure investment.

Subtitle D--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

Sec. 1141. Net metering.
Sec. 1142. Smart metering.
Sec. 1143. Adoption of additional standards.
Sec. 1144. Technical assistance.
Sec. 1145. Cogeneration and small power production purchase and sale 
requirements.
Sec. 1146. Recovery of costs.

Subtitle E--Provisions Regarding the Public Utility Holding Company Act 
                                of 1935

Sec. 1151. Definitions.
Sec. 1152. Repeal of the Public Utility Holding Company Act of 1935.
Sec. 1153. Federal access to books and records.
Sec. 1154. State access to books and records.
Sec. 1155. Exemption authority.
Sec. 1156. Affiliate transactions.
Sec. 1157. Applicability.
Sec. 1158. Effect on other regulations.
Sec. 1159. Enforcement.
Sec. 1160. Savings provisions.
Sec. 1161. Implementation.
Sec. 1162. Transfer of resources.
Sec. 1163. Effective date.
Sec. 1164. Conforming amendment to the Federal Power Act.

   Subtitle F--Market Transparency, Anti-Manipulation and Enforcement

Sec. 1171. Market transparency rules.
Sec. 1172. Market manipulation.
Sec. 1173. Enforcement.
Sec. 1174. Refund effective date.

                    Subtitle G--Consumer Protections

Sec. 1181. Consumer privacy.
Sec. 1182. Unfair trade practices.
Sec. 1183. Definitions.

                    Subtitle H--Technical Amendments

Sec. 1191. Technical Amendments.

                          TITLE I--OIL AND GAS

                   Subtitle A--Production Incentives

SEC. 101. PERMANENT AUTHORITY TO OPERATE THE STRATEGIC PETROLEUM 
                    RESERVE AND OTHER ENERGY PROGRAMS.

  (a) Amendment to Title I of the Energy Policy and Conservation Act.--
Title I of the Energy Policy and Conservation Act (42 U.S.C. 6211 et 
seq.) is amended--
          (1) by striking section 166 (42 U.S.C. 6246) and inserting--
                   ``authorization of appropriations
  ``Sec. 166. There are authorized to be appropriated to the Secretary 
such sums as may be necessary to carry out this part and part D, to 
remain available until expended.'';
          (2) by striking section 186 (42 U.S.C. 6250(e)); and
          (3) by striking part E (42 U.S.C. 6251); relating to the 
        expiration of title I of the Act).
  (b) Amendment to Title II of the Energy Policy and Conservation 
Act.--Title II of the Energy Policy and Conservation Act (42 U.S.C. 
6271 et seq.) is amended--
          (1) by striking section 256(h) (42 U.S.C. 6276(h)) and 
        inserting--
  ``(g) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary such sums as may be necessary to carry 
out this part, to remain available until expended.'';
          (2) by inserting before section 273 (42 U.S.C. 6283) the 
        following:

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

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

              ``Part D--Northeast Home Heating Oil Reserve

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

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

        ``Sec. 273. Summer fill and fuel budgeting programs.'';
        and
          (3) by striking the items relating to part D of title II.
  (d) Northeast Home Heating Oil.--Section 183(b)(1) of the Energy 
Policy and Conservation Act (42 U.S.C. 6250(b)(1)) is amended by 
striking all after ``increases'' through to ``mid-October through 
March'' and inserting ``by more than 60 percent over its 5-year rolling 
average for the months of mid-October through March (considered as a 
heating season average)''.

SEC. 102. STUDY ON INVENTORY OF PETROLEUM AND NATURAL GAS STORAGE.

  (a) Definition.--For purposes of this section ``petroleum'' means 
crude oil, motor gasoline, jet fuel, distillates and propane.
  (b) Study.--The Secretary of Energy shall conduct a study on 
petroleum and natural gas storage capacity and operational inventory 
levels, nationwide and by major geographical regions.
  (c) Contents.--The study shall address--
          (1) historical normal ranges for petroleum and natural gas 
        inventory levels;
          (2) historical and projected storage capacity trends;
          (3) estimated operation inventory levels below which outages, 
        delivery slowdown, rationing, interruptions in service or other 
        indicators of shortage begin to appear;
          (4) explanations for inventory levels dropping below normal 
        ranges; and
          (5) the ability of industry to meet U.S. demand for petroleum 
        and natural gas without shortages or price spikes, when 
        inventory levels are below normal ranges.
  (d) Report to Congress.--Not later than one year from enactment of 
this Act, the Secretary of Energy shall submit a report to Congress on 
the results of the study, including findings and any recommendations 
for preventing future supply shortages.

SEC. 103. PROGRAM ON OIL AND GAS ROYALTIES IN KIND.

  (a) Applicability of Section.--Notwithstanding any other provision of 
law, the provisions of this section shall apply to all royalties-in-
kind accepted by the Secretary (referred to in this section as 
``Secretary'') under any Federal oil or gas lease or permit under 
section 36 of the Mineral Leasing Act (30 U.S.C. 192), section 27 of 
the Outer Continental Shelf Lands Act (43 U.S.C. 1353), or any other 
mineral leasing law beginning on the date of the enactment of this Act 
through September 30, 2013.
  (b) Terms and Conditions.--All royalty accruing to the United States 
under any Federal oil or gas lease or permit under the Mineral Leasing 
Act (30 U.S.C. 181 et seq.) or the Outer Continental Shelf Lands Act 
(43 U.S.C. 1331 et seq.) shall, on the demand of the Secretary, be paid 
in oil or gas. If the Secretary makes such a demand, the following 
provisions apply to such payment:
          (1) Delivery by, or on behalf of, the lessee of the royalty 
        amount and quality due under the lease satisfies the lessee's 
        royalty obligation for the amount delivered, except that 
        transportation and processing reimbursements paid to, or 
        deductions claimed by, the lessee shall be subject to review 
        and audit.
          (2) Royalty production shall be placed in marketable 
        condition by the lessee at no cost to the United States.
          (3) The Secretary may--
                  (A) sell or otherwise dispose of any royalty 
                production taken in kind (other than oil or gas 
                transferred under section 27(a)(3) of the Outer 
                Continental Shelf Lands Act (43 U.S.C. 1353(a)(3)) for 
                not less than the market price; and
                  (B) transport or process (or both) any royalty 
                production taken in kind.
          (4) The Secretary may, notwithstanding section 3302 of title 
        31, United States Code, retain and use a portion of the 
        revenues from the sale of oil and gas royalties taken in kind 
        that otherwise would be deposited to miscellaneous receipts, 
        without regard to fiscal year limitation, or may use royalty 
        production, to pay the cost of--
                  (A) transporting the royalty production;
                  (B) processing the royalty production;
                  (C) disposing of the royalty production; or
                  (D) any combination of transporting, processing, and 
                disposing of the royalty production.
          (5) The Secretary may not use revenues from the sale of oil 
        and gas royalties taken in kind to pay for personnel, travel, 
        or other administrative costs of the Federal Government.
          (6) Notwithstanding the provisions of paragraph 5, the 
        Secretary may use a portion of the revenues from the sale of 
        oil royalties taken in kind, without fiscal year limitation, to 
        pay transportation costs, salaries, and other administrative 
        costs directly related to filling the Strategic Petroleum 
        Reserve.
  (c) Reimbursement of Cost.--If the lessee, pursuant to an agreement 
with the United States or as provided in the lease, processes the 
royalty gas or delivers the royalty oil or gas at a point not on or 
adjacent to the lease area, the Secretary shall--
          (1) reimburse the lessee for the reasonable costs of 
        transportation (not including gathering) from the lease to the 
        point of delivery or for processing costs; or
          (2) allow the lessee to deduct such transportation or 
        processing costs in reporting and paying royalties in value for 
        other Federal oil and gas leases.
  (d) Benefit to the United States Required.--The Secretary may receive 
oil or gas royalties in kind only if the Secretary determines that 
receiving such royalties provides benefits to the United States greater 
than or equal to those likely to have been received had royalties been 
taken in value.
  (e) Report to Congress.--
          (1) No later than September 30, 2005, the Secretary shall 
        provide a report to Congress that addresses--
                  (A) actions taken to develop businesses processes and 
                automated systems to fully support the royalty-in-kind 
                capability to be used in tandem with the royalty-in-
                value approach in managing Federal oil and gas revenue; 
                and
                  (B) future royalty-in-kind businesses operation plans 
                and objectives.
          (2) For each of the fiscal years 2004 through 2013 in which 
        the United States takes oil or gas royalties in kind from 
        production in any State or from the Outer Continental Shelf, 
        excluding royalties taken in kind and sold to refineries under 
        subsections (h), the Secretary shall provide a report to 
        Congress describing--
                  (A) the methodology or methodologies used by the 
                Secretary to determine compliance with subsection (d), 
                including performance standard for comparing amounts 
                received by the United States derived from such 
                royalties in kind to amount likely to have been 
                received had royalties been taken in value;
                  (B) an explanation of the evaluation that led the 
                Secretary to take royalties in kind from a lease or 
                group of leases, including the expected revenue effect 
                of taking royalties in kind;
                  (C) actual amounts received by the United States 
                derived from taking royalties in kind and cost and 
                savings incurred by the United States associated with 
                taking royalties in kind, including but not limited to 
                administrative savings and any new or increased 
                administrative costs; and
                  (D) an evaluation of other relevant public benefits 
                or detriments associated with taking royalties in kind.
  (f) Deduction of Expenses.--
          (1) Before making payments under section 35 of the Mineral 
        Leasing Act (30 U.S.C. 191) or section 8(g) of the Outer 
        Continental Shelf Lands Act (43 U.S.C. 1337(g)) of revenues 
        derived from the sale of royalty production taken in kind from 
        a lease, the Secretary of the Interior shall deduct amounts 
        paid or deducted under subsections (b)(4) and (c), and shall 
        deposit such amounts to miscellaneous receipts.
          (2) If the Secretary allows the lessee to deduct 
        transportation or processing costs under subsection (c), the 
        Secretary may not reduce any payments to recipients of revenues 
        derived from any other Federal oil and gas lease as a 
        consequence of that deduction.
  (g) Consultation With States.--The Secretary shall consult--
          (1) with a State before conducting a royalty in-kind program 
        under this section within the State, and may delegate 
        management of any portion of the Federal royalty in-kind 
        program to such State except as otherwise prohibited by Federal 
        law; and
          (2) annually with any State from which Federal oil or gas 
        royalty is being taken in kind to ensure to the maximum extent 
        practicable that the royalty in-kind program provides revenues 
        to the State greater than or equal to those likely to have been 
        received had royalties been taken in value.
  (h) Provisions for Small Refineries.--
          (1) If the Secretary determines that sufficient supplies of 
        crude oil are not available in the open market to refineries 
        not having their own source of supply for crude oil, the 
        Secretary may grant preference to such refineries in the sale 
        of any royalty oil accruing or reserved to the United States 
        under Federal oil and gas leases issued under any mineral 
        leasing law, for processing or use in such refineries at 
        private sale at not less than the market price.
          (2) In disposing of oil under this subsection, the Secretary 
        may prorate such oil among such refineries in the area in which 
        the oil is produced.
  (i) Disposition to Federal Agencies.-- 
          (1) Any royalty oil or gas taken by the Secretary in kind 
        from onshore oil and gas leases may be sold at not less than 
        market price to any department or agency of the United States.
          (2) Any royalty oil or gas taken in kind from Federal oil and 
        gas leases on the outer Continental Shelf may be disposed of 
        only under section 27 of the Outer Continental Shelf Lands Act 
        (43 U.S.C. 1353).
  (j) Preference for Federal Low-Income Energy Assistance Programs.--In 
disposing of royalty oil or gas taken in kind under this section, the 
Secretary may grant a preference to any person, including any State or 
Federal agency, for the purpose of providing additional resources to 
any Federal low-income energy assistance program.

SEC. 104. MARGINAL PROPERTY PRODUCTION INCENTIVES.

  (a) Marginal Property Defined.--Until such time as the Secretary of 
the Interior issues rules under subsection (e) that prescribe a 
different definition, for purposes of this section, the term ``marginal 
property'' means an onshore unit, communitization agreement, or lease 
not within a unit or communitization agreement that produces on average 
the combined equivalent of less than 15 barrels of oil per well per day 
or 90 million British thermal units of gas per well per day calculated 
based on the average over the three most recent production months, 
including only those wells that produce more than half the days in the 
three most recent production months.
  (b) Conditions for Reduction of Royalty Rate.--Until such time as the 
Secretary of the Interior promulgates rules under subsection (e) that 
prescribe different thresholds or standards, the Secretary shall reduce 
the royalty rate on--
          (1) oil production from marginal properties as prescribed in 
        subsection (c) when the spot price of West Texas Intermediate 
        crude oil at Cushing, Oklahoma, is, on average, less than $15 
        per barrel for 90 consecutive trading days; and
          (2) gas production from marginal properties as prescribed in 
        subsection (c) when the spot price of natural gas delivered at 
        Henry Hub, Louisiana, is, on average, less than $2.00 per 
        million British thermal units for 90 consecutive trading days.
  (c) Reduced Royalty Rate.--
          (1) When a marginal property meets the conditions specified 
        in subsection (b), the royalty rate shall be the lesser of--
                  (A) 5 percent; or
                  (B) the applicable rate under any other statutory or 
                regulatory royalty relief provision that applies to the 
                affected production.
          (2) The reduced royalty rate under this subsection shall be 
        effective on the first day of the production month following 
        the date on which the applicable price standard prescribed in 
        subsection (b) is met.
  (d) Termination of Reduced Royalty Rate.--A royalty rate prescribed 
in subsection (d)(1)(A) shall terminate--
          (1) on oil production from a marginal property, on the first 
        day of the production month following the date on which--
                  (A) the spot price of West Texas Intermediate crude 
                oil at Cushing, Oklahoma, on average, exceeds $15 per 
                barrel for 90 consecutive trading days, or
                  (B) the property no longer qualifies as a marginal 
                property under subsection (a); and
          (2) on gas production from a marginal property, on the first 
        day of the production month following the date on which--
                  (A) the spot price of natural gas delivered at Henry 
                Hub, Louisiana, on average, exceeds $2.00 per million 
                British thermal units for 90 consecutive trading days, 
                or
                  (B) the property no longer qualifies as a marginal 
                property under subsection (a).
  (e) Rules Prescribing Different Relief.-- 
          (1) The Secretary of the Interior, after consultation with 
        the Secretary of Energy, may by rule prescribe different 
        parameters, standards, and requirements for, and a different 
        degree or extent of, royalty relief for marginal properties in 
        lieu of those prescribed in subsections (a) through (d).
          (2) The Secretary of the Interior, after consultation with 
        the Secretary of Energy, and within 1 year after the date of 
        enactment of this Act, shall, by rule,--
                  (A) prescribe standards and requirements for, and the 
                extent of royalty relief for, marginal properties for 
                oil and gas leases on the outer Continental Shelf; and
                  (B) define what constitutes a marginal property on 
                the outer Continental Shelf for purposes of this 
                section.
          (3) In promulgating rules under this subsection, the 
        Secretary of the Interior may consider--
                  (A) oil and gas prices and market trends;
                  (B) production costs;
                  (C) abandonment costs;
                  (D) Federal and State tax provisions and their 
                effects on production economics;
                  (E) other royalty relief programs; and
                  (F) other relevant matters.
  (f) Savings Provision.--Nothing in this section shall prevent a 
lessee from receiving royalty relief or a royalty reduction pursuant to 
any other law or regulation that provides more relief than the amounts 
provided by this section.

SEC. 105. COMPREHENSIVE INVENTORY OF OCS OIL AND NATURAL GAS RESOURCES.

  (a) In General.--The Secretary of the Interior shall conduct an 
inventory and analysis of oil and natural gas resources beneath all of 
the waters of the United States Outer Continental Shelf (``OCS''). The 
inventory and analysis shall--
          (1) use available data on oil and gas resources in areas 
        offshore of Mexico and Canada that will provide information on 
        trends of oil and gas accumulation in areas of the OCS;
          (2) use any available technology, except drilling, but 
        including 3-D seismic technology to obtain accurate resources 
        estimates;
          (3) analyze how resource estimates in OCS areas have changed 
        over time in regards to gathering geological and geophysical 
        data, initial exploration, or full field development, including 
        areas such as the deepwater and subsalt areas in the Gulf of 
        Mexico;
          (4) estimate the effect that understated oil and gas resource 
        inventories have on domestic energy investments; and
          (5) identify and explain how legislative, regulatory, and 
        administrative programs or processes restrict or impede the 
        development of identified resources and the extent that they 
        affect domestic supply, such as moratoria, lease terms and 
        conditions, operational stipulations and requirements, approval 
        delays by the federal government and coastal states, and local 
        zoning restrictions for onshore processing facilities and 
        pipeline landings.
  (b) Reports.--The Secretary of Interior shall submit a report to the 
Congress on the inventory of estimates and the analysis of restrictions 
or impediments, together with any recommendations, within six months of 
the date of enactment of the section. The report shall be publicly 
available and updated at least every five years.

SEC. 106. ROYALTY RELIEF FOR DEEP WATER PRODUCTION.

  (a) In General.--For all tracts located in water depths of greater 
than 400 meters in the Western and Central Planning Area of the Gulf of 
Mexico, including that portion of the Eastern Planning Area of the Gulf 
of Mexico encompassing whole lease blocks lying west of 87 degrees, 30 
minutes West longitude, any oil or gas lease sale under the Outer 
Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) occurring within 5 
years after the date of the enactment of this Act shall use the bidding 
system authorized in section 8(a)(1)(H) of the Outer Continental Shelf 
Lands Act (43 U.S.C. 1337(a)(1)(H)), except that the suspension of 
royalties shall be set at a volume of not less than--
          (1) 5 million barrels of oil equivalent for each lease in 
        water depths of 400 to 800 meters;
          (2) 9 million barrels of oil equivalent for each lease in 
        water depths of 800 to 1,600 meters; and
          (3) 12 million barrels of oil equivalent for each lease in 
        water depths greater than 1,600 meters.

SEC. 107. ALASKA OFFSHORE ROYALTY SUSPENSION.

  Section 8(a)(3)(B) of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337) is amended with the following: add ``and in the Planning 
Areas offshore Alaska'' after ``West longitude'' and before ``the 
Secretary''.

SEC. 108. ORPHANED, ABANDONED OR IDLED WELLS ON FEDERAL LANDS.

  (a) In General.--The Secretary of the Interior, in cooperation with 
the Secretary of Agriculture, shall establish a program within 1 year 
after the date of enactment of this Act to remediate, reclaim, and 
close orphaned, abandoned, or idled oil and gas wells located on lands 
administered by the land management agencies within the Department of 
the Interior and Agriculture. The program shall--
          (1) include a means of ranking orphaned, abandoned, or idled 
        well sites for priority in remediation, reclamation and 
        closure, based on public health and safety, potential 
        environmental harm, and other land use priorities;
          (2) provide for identification and recovery of the costs of 
        remediation, reclamation and closure from persons or other 
        entities currently providing a bond or other financial 
        assurance required under State or Federal law for an oil or gas 
        well that is orphaned, abandoned or idled; and
          (3) provide for recovery from the persons or entities 
        identified under paragraph (2), or their sureties or 
        guarantors, of the costs of remediation, reclamation, and 
        closure of such wells.
  (b) Cooperation and Consultations.--In carrying out this program, the 
Secretary of the Interior shall work cooperatively with the Secretary 
of Agriculture and the States within which the Federal lands are 
located and consult with the Secretary of Energy and the Interstate Oil 
and Gas Compact Commission.
  (c) Plan.--Within 1 year after the date of enactment of the section, 
the Secretary of the Interior, in cooperation with the Secretary of 
Agriculture, shall prepare a plan for carrying out the program 
established under subsection (a) and transmit copies of the plan to the 
Congress.
  (d) Technical Assistance Program for Non-Federal Lands.--
          (1) The Secretary of Energy shall establish a program to 
        provide technical assistance to the various oil and gas 
        producing States to facilitate State efforts over a 10-year 
        period to ensure a practical and economical remedy for 
        environmental problems caused by orphaned or abandoned oil and 
        gas exploration or production well sites on State or private 
        lands.
          (2) The Secretary shall work with the States, through the 
        Interstate Oil and Gas Compact Commission, to assist the States 
        in quantifying and mitigating environmental risks of onshore 
        orphaned abandoned oil or gas wells on State and private lands.
          (3) The program shall include--
                  (A) mechanisms to facilitate identification, if 
                possible, of the persons or other entities currently 
                providing a bond or other form of financial assurance 
                required under State or Federal law for an oil or gas 
                well that is orphaned or abandoned;
                  (B) criteria for ranking orphaned or abandoned well 
                sites based on factors such as public health and 
                safety, potential environmental harm, and other land 
                use priorities; and
                  (C) information and training programs on best 
                practices for remediation of different types of sites.
  (e) Definition.--For purposes of this section, a well is idled if it 
has been non-operational for 7 years and there is no anticipated 
beneficial use of the well.
  (f) Authorization.--To carry out this section there is authorized to 
be appropriated to the Secretary of the Interior $25,000,000 for each 
of the fiscal years 2004 through 2008. Of the amounts authorized, 
$5,000,000 is authorized for activities under subsection (d).

SEC. 109. INCENTIVES FOR NATURAL GAS PRODUCTION FROM DEEP WELLS IN THE 
                    SHALLOW WATERS OF THE GULF OF MEXICO.

  (a) Royalty Incentive Regulations.--Not later than 90 days after 
enactment, the Secretary of the Interior shall promulgate final 
regulations providing royalty incentives for natural gas produced from 
deep wells, as defined by the Secretary, on oil and gas leases issued 
under the Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) 
and issued prior to January 1, 2001, in shallow waters of the Gulf of 
Mexico, wholly west of 87 degrees, 30 minutes West longitude that are 
less than 200 meters deep.
  (b) Royalty Incentive Regulations for Ultra Deep Gas Wells.--
          (1) No later than 90 days after the date of enactment of this 
        Act, in addition to any other regulations that may provide 
        royalty incentives for natural gas produced from deep wells on 
        oil and gas leases issued pursuant to the Outer Continental 
        Shelf Lands Act (43 U.S.C. 1331 et seq.), the Secretary of the 
        Interior shall promulgate new regulations granting royalty 
        relief suspension volumes of not less than 35 billion cubic 
        feet with respect to the production of natural gas from `ultra 
        deep wells' on leases issued prior to January 1, 2001, in 
        shallow waters less than 200 meters deep located in the Gulf of 
        Mexico wholly west of 87 degrees, 30 minutes West longitude. 
        For purposes of this subsection, the term `ultra deep wells' 
        means wells drilled with a perforated interval, the top of 
        which is at least 20,000 feet true vertical depth below the 
        datum at mean sea level.
          (2) The Secretary shall not grant the royalty incentives 
        outlined in this subsection if the average annual NYNEX natural 
        gas price exceeds for one full calendar year the threshold 
        price of $5 per million Btu, adjusted from the year 2000 for 
        inflation.
          (3) This subsection shall have no force or effect after the 
        end of the 5-year period beginning on the date of the enactment 
        of this Act.

SEC. 110. ALTERNATE ENERGY-RELATED USES ON THE OUTER CONTINENTAL SHELF.

  (a) Amendment to Outer Continental Shelf Lands Act.--Section 8 of the 
Outer Continental Shelf Lands Act (43 U.S.C. 1337) is amended by adding 
at the end the following new subsection:
  ``(p) Easements or Rights-of-Way for Energy and Related Purposes.--
          ``(1) The Secretary may grant an easement or right-of-way on 
        the outer Continental Shelf for activities not otherwise 
        authorized in this Act, the Deepwater Port Act of 1974 (33 
        U.S.C. 1501 et seq.), or the Ocean Thermal Energy Conversion 
        Act of 1980 (42 U.S.C. 9101 et seq.), or other applicable law 
        when such activities--
                  ``(A) support exploration, development, or production 
                of oil or natural gas, except that such easements or 
                rights-of-way shall not be granted in areas where oil 
                and gas preleasing, leasing and related activities are 
                prohibited by a Congressional moratorium or a 
                withdrawal pursuant to section 12 of this Act;
                  ``(B) support transportation of oil or natural gas;
                  ``(C) produce or support production, transportation, 
                or transmission of energy from sources other than oil 
                and gas; or
                  ``(D) use facilities currently or previously used for 
                activities authorized under this Act.
          ``(2) The Secretary shall promulgate regulations to ensure 
        that activities authorized under this subsection are conducted 
        in a manner that provides for safety, protection of the 
        environment, conservation of the natural resources of the outer 
        Continental Shelf, appropriate coordination with other Federal 
        agencies, and a fair return to the Federal government for any 
        easement or right-of-way granted under this subsection. Such 
        regulations shall establish procedures for--
                  ``(A) public notice and comment on proposals to be 
                permitted pursuant to this subsection;
                  ``(B) consultation and review by State and local 
                governments that may be impacted by activities to be 
                permitted pursuant to this subsection;
                  ``(C) consideration of the coastal zone management 
                program being developed or administered by an affected 
                coastal State pursuant to section 305 or section 306 of 
                the Coastal Zone Management Act of 1972 (16 U.S.C. 
                1454, 1455); and
                  ``(D) consultation with the Secretary of Defense and 
                other appropriate agencies prior to the issuance of an 
                easement or right-of-way under this subsection 
                concerning issues related to national security and 
                navigational obstruction.
          ``(3) The Secretary shall require the holder of an easement 
        or right-of-way granted under this subsection to furnish a 
        surety bond or other form of security, as prescribed by the 
        Secretary, and to comply with such other requirements as the 
        Secretary may deem necessary to protect the interests of the 
        United States.
          ``(4) This subsection shall not apply to any area within the 
        exterior boundaries of any unit of the National Park System, 
        National Wildlife Refuge System, or National Marine Sanctuary 
        System, or any National Monument.
          ``(5) Nothing in this subsection shall be construed to amend 
        or repeal, expressly by implication, the applicability of any 
        other law, including but not limited to, the Coastal Zone 
        Management Act (16 U.S.C. 1455 et seq.) or the National 
        Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).''.
  (b) Conforming Amendment.--The text of the heading for section 8 of 
the Outer Continental Shelf Lands Act is amended to read as follows: 
``Leases, Easements, and Rights-of-Way on the Outer Continental 
Shelf.''.

SEC. 111. COASTAL IMPACT ASSISTANCE.

  The Outer Continental Shelf Lands Act (43 U.S.C. 1331 et seq.) is 
amended by adding at the end:

``SEC. 32 COASTAL IMPACT ASSISTANCE FAIRNESS PROGRAM.

  ``(a) Definitions.--When used in this section:
          ``(1) The term `coastal political subdivision' means a 
        county, parish, or any equivalent subdivision of a Producing 
        Coastal State in all or part of which subdivision lies within 
        the coastal zone (as defined in section 304(1) of the Coastal 
        Zone Management Act (16 U.S.C. 1453(1))) and within a distance 
        of 200 miles from the geographic center of any leased tract.
          ``(2) The term `coastal population' means the population of 
        all political subdivisions, as determined by the most recent 
        official data of the Census Bureau, contained in whole or in 
        part within the designated coastal boundary of a State as 
        defined in a State's coastal zone management program under the 
        Coastal Zone Management Act (16 U.S.C. 1451 et seq.).
          ``(3) The term `Coastal State' has the same meaning as 
        provided by subsection 304(4) of the Coastal Zone Management 
        Act (16 U.S.C. 1453(4)).
          ``(4) The term `coastline' has the same meaning as the term 
        `coast line' as defined in subsection 2(c) of the Submerged 
        Lands Act (43 U.S.C. 1301(c)).
          ``(5) The term `distance' means the minimum great circle 
        distance, measured in statute miles.
          ``(6) The term `leased tract' means a tract maintained under 
        section 6 or leased under section 8 for the purpose of drilling 
        for, developing, and producing oil and natural gas resources.
          ``(7) The term `Producing Coastal State' means a Coastal 
        State with a coastal seaward boundary within 200 miles from the 
        geographic center of a leased tract other than a leased tract 
        within any area of the Outer Continental Shelf where a 
        moratorium on new leasing was in effect as of January 1, 2002 
        unless the lease was issued prior to the establishment of the 
        moratorium and was in production on January 1, 2002.
          ``(8) The term `qualified Outer Continental Shelf revenues' 
        means all amounts received by the United States from each 
        leased tract or portion of a leased tract lying seaward of the 
        zone defined and governed by section 8(g) of this Act, or lying 
        within such zone but to which section 8(g) does not apply, the 
        geographic center of which lies within a distance of 200 miles 
        from any part of the coastline of any Producing Coastal State, 
        including bonus bids, rents, royalties (including payments for 
        royalties taken in kind and sold), net profit share payments, 
        and related late payment interest. Such term shall only apply 
        to leases issued after January 1, 2003, and revenues from 
        existing leases that occurs after January 1, 2003. Such term 
        does not include any revenues from a leased tract or portion of 
        a leased tract that is included within any area of the Outer 
        Continental Shelf where a moratorium on new leasing was in 
        effect as of January 1, 2002, unless the lease was issued prior 
        to the establishment of the moratorium and was in production on 
        January 1, 2002.
          ``(9) The term `Secretary' means the Secretary of the 
        Interior.
  ``(b) Authorization.--For fiscal years 2004 through 2009, an amount 
equal to not more than 12.5 percent of qualified Outer Continental 
Shelf revenues is authorized to be appropriated for the purposes of 
this section.
  ``(c) Impact Assistance Payments to States and Political 
Subdivisions.--The Secretary shall make payments from the amounts 
available under this section to Producing Coastal States with an 
approved Coastal Impact Assistance Plan, and to coastal political 
subdivisions as follows:
          ``(1) Of the amounts appropriated, the allocation for each 
        Producing Coastal State shall be calculated based on the ratio 
        of qualified Outer Continental Shelf revenues generated off the 
        coastline of the Producing Coastal State to the qualified Outer 
        Continental Shelf revenues generated off the coastlines of all 
        Producing Coastal States for each fiscal year. Where there is 
        more than one Producing Coastal State within 200 miles of a 
        leased tract, the amount of each Producing Coastal State's 
        allocation for such leased tract shall be inversely 
        proportional to the distance between the nearest point on the 
        coastline of such State and the geographic center of each 
        leased tract or portion of the leased tract (to the nearest 
        whole mile) that is within 200 miles of that coastline, as 
        determined by the Secretary.
          ``(2) Thirty-five percent of each Producing Coastal State's 
        allocable share as determined under paragraph (1) shall be paid 
        directly to the coastal political subdivisions by the Secretary 
        based on the following formula:
                  ``(A) Twenty-five percent shall be allocated based on 
                the ratio of such coastal political subdivision's 
                coastal population to the coastal population of all 
                coastal political subdivisions in the Producing Coastal 
                State.
                  ``(B) Twenty-five percent shall be allocated based on 
                the ratio of such coastal political subdivision's 
                coastline miles to the coastline miles of a coastal 
                political subdivision in the Producing Coastal State 
                except that for those coastal political subdivisions in 
                the State of Louisiana without a coastline, the 
                coastline for purposes of this element of the formula 
                shall be the average length of the coastline of the 
                remaining coastal subdivisions in the State.
                  ``(C) Fifty percent shall be allocated based on the 
                relative distance of such coastal political subdivision 
                from any leased tract used to calculate the Producing 
                Coastal State's allocation using ratios that are 
                inversely proportional to the distance between the 
                point in the coastal political subdivision closest to 
                the geographic center of each leased tract or portion, 
                as determined by the Secretary, except that in the 
                State of Alaska, the funds for this element of the 
                formula shall be divided equally among the two closest 
                coastal political subdivisions. For purposes of the 
                calculations under this subparagraph, a leased tract or 
                portion of a leased tract shall be excluded if the 
                leased tract or portion is located in a geographic area 
                where a moratorium on new leasing was in effect on 
                January 1, 2002, unless the lease was issued prior to 
                the establishment of the moratorium and was in 
                production on January 1, 2002.
          ``(3) Any amount allocated to a Producing Coastal State or 
        coastal political subdivision but not disbursed because of a 
        failure to have an approved Coastal Impact Assistance Plan 
        under this section shall be allocated equally by the Secretary 
        among all other Producing Coastal States in a manner consistent 
        with this subsection except that the Secretary shall hold in 
        escrow such amount until the final resolution of any appeal 
        regarding the disapproval of a plan submitted under this 
        section. The Secretary may waive the provisions of this 
        paragraph and hold a Producing Coastal State's allocable share 
        in escrow if the Secretary determines that such State is making 
        a good faith effort to develop and submit, or update, a Coastal 
        Impact Assistance Plan.
          ``(4) For purposes of this subsection, calculations of 
        payments for fiscal years 2004 through 2006 shall be made using 
        qualified Outer Continental Shelf revenues received in fiscal 
        year 2003, and calculations of payments for fiscal years 2007 
        through 2009 shall be made using qualified Outer Continental 
        Shelf revenues received in fiscal year 2006.
  ``(d) Coastal Impact Assistance Plan.--
          ``(1) The Governor of each Producing Coastal State shall 
        prepare, and submit to the Secretary, a Coastal Impact 
        Assistance Plan. The Governor shall solicit local input and 
        shall provide for public participation in the development of 
        the plan. The plan shall be submitted to the Secretary by July 
        1, 2004. Amounts received by Producing Coastal States and 
        coastal political subdivisions may be used only for the 
        purposes specified in the Producing Coastal State's Coastal 
        Impact Assistance Plan.
          ``(2) The Secretary shall approve a plan under paragraph (1) 
        prior to disbursement of amounts under this section. The 
        Secretary shall approve the plan if the Secretary determines 
        that the plan is consistent with the uses set forth in 
        subsection (f) of this section and if the plan contains--
                  ``(A) the name of the State agency that will have the 
                authority to represent and act for the State in dealing 
                with the Secretary for purposes of this section;
                  ``(B) a program for the implementation of the plan 
                which describes how the amounts provided under this 
                section will be used;
                  ``(C) a contact for each political subdivision and 
                description of how coastal political subdivisions will 
                use amounts provided under this section, including a 
                certification by the Governor that such uses are 
                consistent with the requirements of this section;
                  ``(D) certification by the Governor that ample 
                opportunity has been accorded for public participation 
                in the development and revision of the plan; and
                  ``(E) measures for taking into account other relevant 
                Federal resources and programs.
          ``(3) The Secretary shall approve or disapprove each plan or 
        amendment within 90 days of its submission.
          ``(4) Any amendment to the plan shall be prepared in 
        accordance with the requirements of this subsection and shall 
        be submitted to the Secretary for approval or disapproval.
  ``(e) Authorized Uses.--Producing Coastal States and coastal 
political subdivisions shall use amounts provided under this section, 
including any such amounts deposited in a State or coastal political 
subdivision administered trust fund dedicated to uses consistent with 
this subsection, in compliance with Federal and State law and only for 
one or more of the following purposes--
          ``(1) projects and activities for the conservation, 
        protection or restoration of coastal areas including wetlands;
          ``(2) mitigating damage to fish, wildlife or natural 
        resources;
          ``(3) planning assistance and administrative costs of 
        complying with the provisions of this section;
          ``(4) implementation of Federally approved marine, coastal, 
        or comprehensive conservation management plans; and
          ``(5) mitigating impacts of Outer Continental Shelf 
        activities through funding onshore infrastructure and public 
        service needs.
  (f) Compliance With Authorized Uses.--If the Secretary determines 
that any expenditure made by a Producing Coastal State or coastal 
political subdivision is not consistent with the uses authorized in 
subsection (e) of this section, the Secretary shall not disburse any 
further amounts under this section to that Producing Coastal State or 
coastal political subdivision until the amounts used for the 
inconsistent expenditure have been repaid or obligated for authorized 
uses.

SEC. 112. NATIONAL ENERGY RESOURCE DATABASE.

  (a) Short Title.--This section may be cited as the ``National Energy 
Data Preservation Program Act of 2003''.
  (b) Program.--The Secretary of the Interior (in this section, 
referred to as ``Secretary'') shall carry out a National Energy Data 
Preservation Program in accordance with this section--
          (1) to archive geologic, geophysical, and engineering data 
        and samples related to energy resources including oil, gas, 
        coal, and geothermal resources;
          (2) to provide a national catalog of such archival material; 
        and
          (3) to provide technical assistance related to the archival 
        material.
  (c) Energy Data Archive System.--
          (1) The Secretary shall establish, as a component of the 
        program, an energy data archive system, which shall provide for 
        the storage, preservation, and archiving of subsurface, and in 
        limited cases surface, geological, geophysical and engineering 
        data and samples. The Secretary, in consultation with the 
        Association of American State Geologists and interested members 
        of the public, shall develop guidelines relating to the energy 
        data archive system, including the types of data and samples to 
        be preserved.
          (2) The system shall be comprised of State agencies and 
        agencies within the Department of the Interior that maintain 
        geological and geophysical data and samples regarding energy 
        resources and that are designated by the Secretary in 
        accordance with this subsection. The program shall provide for 
        the storage of data and samples through data repositories 
        operated by such agencies.
          (3) The Secretary may not designate a State agency as a 
        component of the energy data archive system unless it is the 
        agency that acts as the geological survey in the State.
          (4) The energy data archive system shall provide for the 
        archiving of relevant subsurface data and samples obtained 
        during energy exploration and production operations on Federal 
        lands--
                  (A) in the most appropriate repository designated 
                under paragraph (2), with preference being given to 
                archiving data in the State in which the data was 
                collected; and
                  (B) consistent with all applicable law and 
                requirements relating to confidentiality and 
                proprietary data.
          (5)(A) Subject to the availability of appropriations, the 
        Secretary shall provide financial assistance to a State agency 
        that is designated under paragraph (2) for providing facilities 
        to archive energy material.
          (B) The Secretary, in consultation with the Association of 
        American State Geologists and interested members of the public, 
        shall establish procedures for providing assistance under this 
        paragraph. The procedures shall be designed to ensure that such 
        assistance primarily supports the expansion of data and 
        material archives and the collection and preservation of new 
        data and samples.
  (d) National Catalog.--
          (1) As soon as practicable after the date of the enactment of 
        this section, the Secretary shall develop and maintain, as a 
        component of the program, a national catalog that identifies--
                  (A) energy data and samples available in the energy 
                data archive system established under subsection (c);
                  (B) the repository for particular material in such 
                system; and
                  (C) the means of accessing the material.
          (2) The Secretary shall make the national catalog accessible 
        to the public on the site of the Survey on the World Wide Web, 
        consistent with all applicable requirements related to 
        confidentiality and proprietary data.
          (3) The Secretary may carry out the requirements of this 
        subsection by contract or agreement with appropriate persons.
  (e) Technical Assistance.--
          (1) Subject to the availability of appropriations, as a 
        component of the Program, the Secretary shall provide financial 
        assistance to any State agency designated under subsection 
        (c)(2) to provide technical assistance to enhance unders 
        tanding, interpretation, and use of materials archived in the 
        energy data archive system established under subsection (c).
          (2) The Secretary, in consultation with the Association of 
        American State Geologists and interested members of the public, 
        shall develop a process, which shall involve the participation 
        of representatives of relevant Federal and State agencies, for 
        the approval of financial assistance to State agencies under 
        this subsection.
  (f) Costs.--
          (1) The Federal share of the cost of an activity carried out 
        with assistance under subsections (c) or (e) shall be no more 
        than 50 percent of the total cost of that activity.
          (2) The Secretary--
                  (A) may accept private contributions of property and 
                services for technical assistance and archive 
                activities conducted under this section; and
                  (B) may apply the value of such contributions to the 
                non-Federal share of the costs of such technical 
                assistance and archive activities.
  (g) Reports.--
          (1) Within one year after the date of the enactment of this 
        Act, the Secretary shall submit an initial report to the 
        Congress setting forth a plan for the implementation of the 
        program.
          (2) Not later than 90 days after the end of the first fiscal 
        year beginning after the submission of the report under 
        paragraph (1) and after the end of each fiscal year thereafter, 
        the Secretary shall submit a report to the Congress describing 
        the status of the program and evaluating progress achieved 
        during the preceding fiscal year in developing and carrying out 
        the program.
          (3) The Secretary shall consult with the Association of 
        American State Geologists and interested members of the public 
        in preparing the reports required by this subsection.
  (h) Definitions.--As used in this section, the term:
          (1) ``Association of American State Geologists'' means the 
        organization of the chief executives of the State geological 
        surveys.
          (2) ``Secretary'' means the Secretary of the Interior acting 
        through the Director of the United States Geological Survey.
          (3) ``Program'' means the National Energy Data Preservation 
        Program carried out under this section.
          (4) ``Survey'' means the United States Geological Survey.
  (i) Maintenance of State Effort.--It is the intent of the Congress 
that the States not use this section as an opportunity to reduce State 
resources applied to the activities that are the subject of the 
program.
  (j) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary $30,000,000 for each of fiscal years 2003 
through 2007 for carrying out this section.

SEC. 113. OIL AND GAS LEASE ACREAGE LIMITATION.

  Section 27(d)(1) of the Mineral Leasing Act (30 U.S.C. 184(d)(1)) is 
amended by inserting after ``acreage held in special tar sands area'' 
the following: ``as well as acreage under any lease any portion of 
which has been committed to a federally approved unit or cooperative 
plan or communitization agreement, or for which royalty, including 
compensatory royalty or royalty-in-kind, was paid in the preceding 
calendar year,''.

SEC. 114. ASSESSMENT OF DEPENDENCE OF STATE OF HAWAII ON OIL.

  (a) Assessment.--The Secretary of Energy shall assess the economic 
implication of the dependence of the State of Hawaii on oil as the 
principal source of energy for the State, including--
          (1) the short- and long-term prospects for crude oil supply 
        disruption and price volatility and potential impacts on the 
        economy of Hawaii;
          (2) the economic relationship between oil-fired generation of 
        electricity from residual fuel and refined petroleum products 
        consumed for ground, marine, and air transportation;
          (3) the technical and economic feasibility of increasing the 
        contribution of renewable energy resources for generation of 
        electricity, on an island-by-island basis, including--
                  (A) siting and facility configuration;
                  (B) environmental, operational, and safety 
                considerations;
                  (C) the availability of technology;
                  (D) effects on the utility system including 
                reliability;
                  (E) infrastructure and transport requirements;
                  (F) community support; and
                  (G) other factors affecting the economic impact of 
                such an increase and any effect on the economic 
                relationship described in paragraph (2);
          (4) the technical and economic feasibility of using liquefied 
        natural gas to displace residual fuel oil for electric 
        generation, including neighbor island opportunities, and the 
        effect of such displacement on the economic relationship 
        described in paragraph (2) including--
                  (A) the availability of supply;
                  (B) siting and facility configuration for onshore and 
                offshore liquefied natural gas receiving terminals;
                  (C) the factors described in subparagraphs (B) 
                through (F) of paragraph (3); and
                  (D) other economic factors;
          (5) the technical and economic feasibility of using renewable 
        energy sources (including hydrogen) for ground, marine, and air 
        transportation energy applications to displace the use of 
        refined petroleum products, on an island-by-island basis, and 
        the economic impact of such displacement on the relationship 
        described in (2); and
          (6) an island-by-island approach to--
                  (A) the development of hydrogen from renewable 
                resources; and
                  (B) the application of hydrogen to the energy needs 
                of Hawaii.
  (b) Contracting Authority.--The Secretary of Energy may carry out the 
assessment under subsection (a) directly or, in whole or in part, 
through one or more contracts with qualified public or private 
entities.
  (c) Report.--Not later than 300 days after the date of enactment of 
this Act, the Secretary of Energy shall prepare, in consultation with 
agencies of the State of Hawaii and other stakeholders, as appropriate, 
and submit to Congress, as report detailing the findings, conclusions, 
and recommendations resulting from the assessment.
  (d) Appropriation.--They are authorized to be appropriated such sums 
as are necessary to carry out this section.

                  Subtitle B--Access to Federal Lands

SEC. 121. OFFICE OF FEDERAL ENERGY PERMIT COORDINATION.

  (a) Establishment.--The President shall establish the Office of 
Federal Energy Permit Coordination (in this section, referred to as 
``Office'') within the Executive Office of the President in the same 
manner and mission as the White House Energy Projects Task Force 
established by Executive Order 13212.
  (b) Staffing.--The Office shall be staffed by functional experts from 
relevant federal agencies and departments on a nonreimbursable basis to 
carry out the mission of this office.
  (c) Reporting.--The Office shall provide an annual report to 
Congress, detailing the activities put in place to coordinate and 
expedite Federal decisions on energy projects. The report shall list 
accomplishments in improving the federal decision making process and 
shall include any additional recommendations or systemic changes needed 
to establish a more effective and efficient federal permitting process.

SEC. 122. PILOT PROJECT TO IMPROVE FEDERAL PERMIT COORDINATION.

  (a) Creation of Pilot Project.--The Secretary of the Interior (in 
this section, referred to as ``Secretary'') shall establish a Federal 
Permit Streamlining Pilot Project. The Secretary shall enter into a 
Memorandum of Understanding with the Secretary of Agriculture, 
Administrator of the Environmental Protection Agency, and the Chief of 
the Corps of Engineers within 90 days after enactment of this Act. The 
Secretary may also request that the Governors of Wyoming, Montana, 
Colorado, and New Mexico be signatories to the Memorandum of 
Understanding.
  (b) Designation of Qualified Staff.--Once the Pilot Project has been 
established by the Secretary, all Federal signatory parties shall 
assign an employee on a nonreimbursable basis to each of the field 
offices identified in section (c), who has expertise in the regulatory 
issues pertaining to their office, including, as applicable, particular 
expertise in Endangered Species Act section 7 consultations and the 
preparation of Biological Opinions, Clean Water Act 404 permits, Clean 
Air Act regulatory matters, planning under the National Forest 
Management Act, and the preparation of analyses under the National 
Environmental Policy Act. Assigned staff shall report to the Bureau of 
Land Management (BLM) Field Managers in the offices to which they are 
assigned, and shall be responsible for all issues related to the 
jurisdiction of their home office or agency, and participate as part of 
the team of employees working on proposed energy projects, planning, 
and environmental analyses.
  (c) Field Offices.--The following BLM field offices shall serve as 
the Federal Permit Streamlining Pilot Project offices:
          (1) Rawlins, Wyoming;
          (2) Buffalo, Wyoming;
          (3) Miles City, Montana;
          (4) Farmington, New Mexico;
          (5) Carlsbad, New Mexico; and
          (6) Glenwood Springs, Colorado.
  (d) Reports.--The Secretary shall submit a report to the Congress 3 
years following the date of enactment of this section, outlining the 
results of the pilot project to date and including a recommendation to 
the President as to whether the pilot project should be implemented 
nationwide.
  (e) Additional Personnel.--The Secretary shall assign to each of the 
BLM field offices listed in subsection (c) such additional personnel as 
is necessary to ensure the effective implementation of--
          (1) the Pilot Project; and
          (2) other programs administered by such offices, including 
        inspection and enforcement related to energy development on 
        Federal lands, pursuant to the multiple use mandate of the 
        Federal Land Policy and Management Act of 1976 (43 U.S.C. 1701 
        et seq.).
  (f) Savings Provision.--Nothing in this section shall affect the 
operation of any Federal or State law or any delegation of authority 
made by a Secretary or head of an agency whose employees are 
participating in the program provided for by this section.
  (g) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this section.

SEC. 123. FEDERAL ONSHORE LEASING PROGRAMS FOR OIL AND GAS.

  (a) Timely Action on Leases and Permits.--To ensure timely action on 
oil and gas leases and applications for permits to drill on lands 
otherwise available for leasing, the Secretary of the Interior shall--
          (1) ensure expeditious compliance with the requirements of 
        section 102(2)(C) of the National Environmental Policy Act of 
        1969 (42 U.S.C. 4332(2)(C));
          (2) improve consultation and coordination with the States; 
        and
          (3) improve the collection, storage, and retrieval of 
        information related to such leasing activities.
  (b) Improved Enforcement.--The Secretary shall improve inspection and 
enforcement of oil and gas activities, including enforcement of terms 
and conditions in permits to drill.
  (c) Authorization of Appropriations.--For each of the fiscal years 
2004 through 2007, in addition to amounts otherwise authorized to be 
appropriated for the purpose of carrying out section 17 of the Mineral 
Leasing Act (30 U.S.C. 226), there are authorized to be appropriated to 
the Secretary of the Interior--
          (1) $40,000,000 for the purpose of carrying out paragraphs 
        (1) through (3) of subsection (a); and
          (2) $20,000,000 for the purpose of carrying out subsection 
        (b).

SEC. 124. ESTIMATES OF OIL AND GAS RESOURCES UNDERLYING ONSHORE FEDERAL 
                    LANDS.

  Section 604 of the Energy Act of 2000 (42 U.S.C. 6217) is amended by 
striking ``(a) In General'' and all thereafter and inserting--
  ``(a) In General.--The Secretary of the Interior, in consultation 
with the Secretaries of Agriculture and Energy, shall conduct an 
inventory of all onshore Federal lands and take measures necessary to 
update and revise this inventory. The inventory shall identify for all 
Federal lands--
          ``(1) the United States Geological Survey estimates of the 
        oil and gas resources underlying these lands;
          ``(2) the extent and nature of any restrictions or 
        impediments to the exploration, production and transportation 
        of such resources, including--
                  ``(A) existing land withdrawals and the underlying 
                purpose for each withdrawal;
                  ``(B) restrictions or impediments affecting 
                timeliness of granting leases;
                  ``(C) post-lease restrictions or impediments such as 
                conditions of approval, applications for permits to 
                drill, applicable environmental permits;
                  ``(D) permits or restrictions associated with 
                transporting the resources; and
                  ``(E) identification of the authority for each 
                restriction or impediment together with the impact on 
                additional processing or review time and potential 
                remedies; and
          ``(3) the estimates of oil and gas resources not available 
        for exploration and production by virtue of the restrictions 
        identified above.
  ``(b) Reports.--The Secretary shall provide a progress report to the 
Congress by October 1, 2006 and shall complete the inventory by October 
1, 2010.
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to implement this 
section.''.

SEC. 125. SPLIT-ESTATE FEDERAL OIL AND GAS LEASING AND DEVELOPMENT 
                    PRACTICES.

  (a) Review.--In consultation with affected private surface owners, 
oil and gas industry and other interested parties, the Secretary of the 
Interior shall undertake a review of the current policies and practices 
with respect to management of Federal subsurface oil and gas 
development activities and their effects on the privately owned 
surface. This review shall include--
          (1) a comparison of the rights and responsibilities under 
        existing mineral and land law for the owner of a Federal 
        mineral lease, the private surface owners and the Department;
          (2) a comparison of the surface owner consent provisions in 
        section 714 of the Surface Mining Control and Reclamation Act 
        (30 U.S.C. 1304) concerning surface mining of Federal coal 
        deposits and the surface owner consent provisions for oil and 
        gas development, including coalbed methane production; and
          (3) recommendations for administrative or legislative action 
        necessary to facilitate reasonable access for Federal oil and 
        gas activities while addressing surface owner concerns and 
        minimizing impacts to private surface.
  (b) Report.--The Secretary of the Interior shall report the results 
of such review to the Congress no later than 180 days after enactment 
of this section.

SEC. 126. COORDINATION OF FEDERAL AGENCIES TO ESTABLISH PRIORITY ENERGY 
                    TRANSMISSION RIGHTS-OF-WAY.

  (a) Definitions.--For purposes of this section:
          (1) The term ``utility corridor'' means any linear strip of 
        land across Federal lands of approved width, but limited by 
        technological, environmental, and topographical factors for use 
        by a utility facility.
          (2) The term ``Federal authorization'' means any 
        authorization required under Federal law in order to site a 
        utility facility, including but not limited to such permits, 
        special use authorizations, certifications, opinions, or other 
        approvals as may be required, issued by a Federal agency.
          (3) The term ``Federal lands'' means all lands owned by the 
        United States, except--
                  (A) lands in the National Park System;
                  (B) lands held in trust for an Indian or Indian 
                tribe; and
                  (C) lands on the Outer Continental Shelf.
          (4) The term ``Secretary'' means the Secretary of Energy.
          (5) The term ``utility facility'' means any privately, 
        publicly, or cooperatively owned line, facility, or system (A) 
        for the transportation of oil and natural gas, synthetic liquid 
        or gaseous fuels, any refined product produced therefrom, or 
        for transportation of products in support of production, or for 
        storage and terminal facilities in connection therewith; or (B) 
        for the generation, transmission and distribution of electric 
        energy.
  (b) Utility Corridors.--
          (1) No later than 24 months after the date of enactment of 
        this section, the Secretary of the Interior, with respect to 
        public lands, and the Secretary of Agriculture, with respect to 
        National Forest System lands, in consultation with the 
        Secretary, shall--
                  (A) designate utility corridors pursuant to section 
                503 of the Federal Land Policy and Management Act (43 
                U.S.C. 1763) in the eleven contiguous Western States, 
                as identified in section 103(o) of such Act (43 U.S.C. 
                1702(o)); and
                  (B) incorporate the utility corridors designated 
                under paragraph (A) into the relevant departmental and 
                agency land use and resource management plans or their 
                equivalent.
          (2) The Secretary shall coordinate with the affected Federal 
        agencies to jointly identify potential utility corridors on 
        Federal lands in the other States and jointly develop a 
        schedule for the designation, environmental review and 
        incorporation of such utility corridors into relevant 
        departmental and agency land use and resource management plans 
        or their equivalent.
  (c) Federal Permit Coordination.--The Secretary, in consultation with 
the Secretary of the Interior, the Secretary of Agriculture, and the 
Secretary of Defense, shall develop a memorandum of understanding 
(``MOU'') for the purpose of coordinating all applicable Federal 
authorizations and environmental reviews related to a proposed or 
existing utility facility. To the maximum extent practicable under 
applicable law, the Secretary shall coordinate the process developed in 
the MOU with any Indian tribes, multi-State entities, and State 
agencies that are responsible for conducting any separate permitting 
and environmental reviews of the affected utility facility to ensure 
timely review and permit decisions. The MOU shall provide for--
          (1) the coordination among affected Federal agencies to 
        ensure that the necessary Federal authorizations are conducted 
        concurrently with applicable State siting processes and are 
        considered within a specific time frame to be identified in the 
        MOU;
          (2) an agreement among the affected Federal agencies to 
        prepare a single environmental review document to be used as 
        the basis for all Federal authorization decisions; and
          (3) a process to expedite applications to construct or modify 
        utility facilities within utility corridors.

                Subtitle C--Alaska Natural Gas Pipeline

SEC. 131. SHORT TITLE.

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

SEC. 132. DEFINITIONS.

  In this subtitle, the following definitions apply:
          (1) The term ``Alaska natural gas'' means natural gas derived 
        from the area of the State of Alaska lying north of 64 degrees 
        North latitude.
          (2) The term ``Alaska natural gas transportation project'' 
        means any natural gas pipeline system that carries Alaska 
        natural gas to the border between Alaska and Canada (including 
        related facilities subject to the jurisdiction of the 
        Commission) that is authorized under either--
                  (A) the Alaska Natural Gas Transportation Act of 1976 
                (15 U.S.C. 719 et seq.); or
                  (B) section 133.
          (3) The term ``Alaska natural gas transportation system'' 
        means the Alaska natural gas transportation project authorized 
        under the Alaska Natural Gas Transportation Act of 1976 and 
        designated and described in section 2 of the President's 
        decision.
          (4) The term ``Commission'' means the Federal Energy 
        Regulatory Commission.
          (5) The term ``President's decision'' means the decision and 
        report to Congress on the Alaska natural gas transportation 
        system issued by the President on September 22, 1977, pursuant 
        to section 7 of the Alaska Natural Gas Transportation Act of 
        1976 (15 U.S.C. 719(e) and approved by Public Law 95-158 (91 
        Stat. 1268).

SEC. 133. ISSUANCE OF CERTIFICATE OF PUBLIC CONVENIENCE AND NECESSITY.

  (a) Authority of the Commission.--Notwithstanding the provisions of 
the Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719 et 
seq.), the Commission may, pursuant to section 7(c) of the Natural Gas 
Act (15 U.S.C. 717f(c)), consider and act on an application for the 
issuance of a certificate of public convenience and necessity 
authorizing the construction and operation of an Alaska natural gas 
transportation project other than the Alaska natural gas transportation 
system.
  (b) Issuance of Certificate.--
          (1) The Commission shall issue a certificate of public 
        convenience and necessity authorizing the construction and 
        operation of an Alaska natural gas transportation project under 
        this section if the applicant has satisfied the requirements of 
        section 7(e) of the Natural Gas Act (15 U.S.C. 717f(e)).
          (2) In considering an application under this section, the 
        Commission shall presume that--
                  (A) a public need exists to construct and operate the 
                proposed Alaska natural gas transportation project; and
                  (B) sufficient downstream capacity will exist to 
                transport the Alaska natural gas moving through such 
                project to markets in the contiguous United States.
  (c) Expedited Approval Process.--The Commission shall issue a final 
order granting or denying any application for a certificate of public 
convenience and necessity under section 7(c) of the Natural Gas Act (15 
U.S.C. 717f(c)) and this section not more than 60 days after the 
issuance of the final environmental impact statement for that project 
pursuant to section 134.
  (d) Prohibition on Certain Pipeline Route.--No license, permit, 
lease, right-of-way, authorization, or other approval required under 
Federal law for the construction of any pipeline to transport natural 
gas from lands within the Prudhoe Bay oil and gas lease area may be 
granted for any pipeline that follows a route that traverses--
          (1) the submerged lands (as defined by the Submerged Lands 
        Act) beneath, or the adjacent shoreline of, the Beaufort Sea; 
        and
          (2) enters Canada at any point north of 68 degrees North 
        latitude.
  (e) Open Season.--Except where an expansion is ordered pursuant to 
section 135, initial or expansion capacity on any Alaska natural gas 
transportation project shall be allocated in accordance with procedures 
to be established by the Commission in regulations governing the 
conduct of open seasons for such project. Such procedures shall include 
the criteria for and timing of any open seasons; promote competition in 
the exploration, development, and production of Alaska natural gas; 
and, for any open season for capacity beyond the initial capacity, 
provide the opportunity for the transportation of natural gas other 
than from the Prudhoe Bay and Point Thompson units. The Commission 
shall issue such regulations not later than 120 days after the date of 
enactment of this Act.
  (f) Projects in the Contiguous United States.--Applications for 
additional or expanded pipeline facilities that may be required to 
transport Alaska natural gas from Canada to markets in the contiguous 
United States may be made pursuant to the Natural Gas Act. To the 
extent such pipeline facilities include the expansion of any facility 
constructed pursuant to the Alaska Natural Gas Transportation Act of 
1976, the provisions of that Act shall continue to apply.
  (g) Study of In-State Needs.--The holder of the certificate of public 
convenience and necessity issued, modified, or amended by the 
Commission for an Alaska natural gas transportation project shall 
demonstrate that it has conducted a study of Alaska in-State needs, 
including tie-in points along the Alaska natural gas transportation 
project for in-State access.
  (h) Alaska Royalty Gas.--The Commission, upon the request of the 
State of Alaska and after a hearing, may provide for reasonable access 
to the Alaska natural gas transportation project for the State of 
Alaska or its designee for the transportation of the State's royalty 
gas for local consumption needs within the State; except that the rates 
of existing shippers of subscribed capacity on such project shall not 
be increased as a result of such access.
  (i) Regulations.--The Commission may issue regulations to carry out 
the provisions of this section.

SEC. 134. ENVIRONMENTAL REVIEWS.

  (a) Compliance With NEPA.--The issuance of a certificate of public 
convenience and necessity authorizing the construction and operation of 
any Alaska natural gas transportation project under section 133 shall 
be treated as a major Federal action significantly affecting the 
quality of the human environment within the meaning of section 
102(2)(c) of the National Environmental Policy Act of 1969 (42 U.S.C. 
4332(2)(c)).
  (b) Designation of Lead Agency.--The Commission shall be the lead 
agency for purposes of complying with the National Environmental Policy 
Act of 1969, and shall be responsible for preparing the statement 
required by section 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with 
respect to an Alaska natural gas transportation project under section 
133. The Commission shall prepare a single environmental statement 
under this section, which shall consolidate the environmental reviews 
of all Federal agencies considering any aspect of the project.
  (c) Other Agencies.--All Federal agencies considering aspects of the 
construction and operation of an Alaska natural gas transportation 
project under section 133 shall cooperate with the Commission, and 
shall comply with deadlines established by the Commission in the 
preparation of the statement under this section. The statement prepared 
under this section shall be used by all such agencies to satisfy their 
responsibilities under section 102(2)(c) of the National Environmental 
Policy Act of 1969 (42 U.S.C. 4332(2)(c)) with respect to such project.
  (d) Expedited Process.--The Commission shall issue a draft statement 
under this section not later than 12 months after the Commission 
determines the application to be complete and shall issue the final 
statement not later than 6 months after the Commission issues the draft 
statement, unless the Commission for good cause finds that additional 
time is needed.

SEC. 135. PIPELINE EXPANSION.

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

SEC. 136. FEDERAL COORDINATOR.

  (a) Establishment.--There is established, as an independent office in 
the executive branch, the Office of the Federal Coordinator for Alaska 
Natural Gas Transportation Projects.
  (b) Federal Coordinator.--The Office shall be headed by a Federal 
Coordinator for Alaska Natural Gas Transportation Projects, who shall--
          (1) be appointed by the President, by and with the advice and 
        consent of the Senate;
          (2) for a term equal to the period required to design, permit 
        and construct the project plus one year; and
          (3) be compensated at the rate prescribed for level III of 
        the Executive Schedule (5 U.S.C. 5314).
  (c) Duties.--The Federal Coordinator shall be responsible for--
          (1) coordinating the expeditious discharge of all activities 
        by Federal agencies with respect to an Alaska natural gas 
        transportation project; and
          (2) ensuring the compliance of Federal agencies with the 
        provisions of this subtitle.
  (d) Reviews and Actions of Other Federal Agencies.--
          (1) All reviews conducted and actions taken by any Federal 
        officer or agency relating to an Alaska natural gas 
        transportation project authorized under this section shall be 
        expedited, in a manner consistent with completion of the 
        necessary reviews and approvals by the deadlines set forth in 
        this subtitle.
          (2) No Federal officer or agency shall have the authority to 
        include terms and conditions that are permitted, but not 
        required, by law on any certificate, right-of-way, permit, 
        lease, or other authorization issued to an Alaska natural gas 
        transportation project if the Federal Coordinator determines 
        that the terms and conditions would prevent or impair in any 
        significant respect the expeditious construction and operation, 
        or an expansion, of the project.
          (3) Unless required by law, no Federal officer or agency 
        shall add to, amend, or abrogate any certificate, right-of-way, 
        permit, lease, or other authorization issued to an Alaska 
        natural gas transportation project if the Federal Coordinator 
        determines that such action would prevent or impair in any 
        significant respect the expeditious construction and operation 
        of, or an expansion of, the project.
          (4) The Federal Coordinator's authority shall not include the 
        ability to override--
                  (A) the implementation or enforcement of regulations 
                issued by the Commission pursuant to Section 133(e); or
                  (B) an order by the Commission to expand the project 
                pursuant to section 135.
          (5) Nothing in this section shall give the Federal 
        Coordinator the authority to impose additional terms, 
        conditions or requirements beyond those imposed by the 
        Commission or any agency with respect to construction and 
        operation, or an expansion of, the project.
  (e) State Coordination.--The Federal Coordinator shall enter into a 
Joint Surveillance and Monitoring Agreement, approved by the President 
and the Governor of Alaska, with the State of Alaska similar to that in 
effect during construction of the Trans-Alaska Oil Pipeline to monitor 
the construction of the Alaska natural gas transportation project. The 
Federal Government shall have primary surveillance and monitoring 
responsibility where the Alaska natural gas transportation project 
crosses Federal lands and private lands, and the State government shall 
have primary surveillance and monitoring responsibility where the 
Alaska natural gas transportation project crosses State lands.
  (f) Transfer of Federal Inspector Functions and Authority.--Upon 
appointment of the Federal Coordinator by the President, all of the 
functions and authority of the Office of Federal Inspector of 
Construction for the Alaska Natural Gas Transportation System vested in 
the Secretary of Energy pursuant to section 3012(b) of Public Law 102-
486 (15 U.S.C. 719e(b)), including all functions and authority 
described and enumerated in the Reorganization Plan No. 1 of 1979 (44 
Fed. Reg. 33,663), Executive Order No. 12142 of June 21, 1979 (44 Fed. 
Reg. 36,927), and section 5 of the President's decision, shall be 
transferred to the Federal Coordinator.

SEC. 137. JUDICIAL REVIEW.

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

SEC. 138. STATE JURISDICTION OVER IN-STATE DELIVERY OF NATURAL GAS.

  (a) Local Distribution.--Any facility receiving natural gas from the 
Alaska natural gas transportation project for delivery to consumers 
within the State of Alaska shall be deemed to be a local distribution 
facility within the meaning of section 1(b) of the Natural Gas Act (15 
U.S.C. 717(b)), and therefore not subject to the jurisdiction of the 
Commission.
  (b) Additional Pipelines.--Nothing in this subtitle, except as 
provided in section 133(d), shall preclude or affect a future gas 
pipeline that may be constructed to deliver natural gas to Fairbanks, 
Anchorage, Matanuska-Susitna Valley, or the Kenai peninsula or Valdez 
or any other site in the State of Alaska for consumption within or 
distribution outside the State of Alaska.
  (c) Rate Coordination.--Pursuant to the Natural Gas Act, the 
Commission shall establish rates for the transportation of natural gas 
on the Alaska natural gas transportation project. In exercising such 
authority, the Commission, pursuant to section 17(b) of the Natural Gas 
Act (15 U.S.C. 717p(b)), shall confer with the State of Alaska 
regarding rates (including rate settlements) applicable to natural gas 
transported on and delivered from the Alaska natural gas transportation 
project for use within the State of Alaska.

SEC. 139. STUDY OF ALTERNATIVE MEANS OF CONSTRUCTION.

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

SEC. 140. CLARIFICATION OF ANGTA STATUS AND AUTHORITIES.

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

SEC. 141. SENSE OF CONGRESS.

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

SEC. 142. PARTICIPATION OF SMALL BUSINESS CONCERNS.

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

SEC. 143. ALASKA PIPELINE CONSTRUCTION TRAINING PROGRAM.

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

SEC. 144. LOAN GUARANTEES.

  (a) Authority.--
          (1) The Secretary may enter agreements with 1 or more holders 
        of a certificate of public convenience and necessity issued 
        under section 133(b) of this Act or section 9 of the Alaska 
        Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) to 
        issue Federal guarantee instruments with respect to loans and 
        other debt obligations for a qualified infrastructure project.
          (2) Subject to the requirements of this section, the 
        Secretary may also enter into agreements with 1 or more owners 
        of the Canadian portion of a qualified infrastructure project 
        to issue Federal guarantee instruments with respect to loans 
        and other debt obligations for a qualified infrastructure 
        project as though such owner were a holder described in 
        paragraph (1).
          (3) The authority of the Secretary to issue Federal guarantee 
        instruments under this section for a qualified infrastructure 
        project shall expire on the date that is 2 years after the date 
        on which the final certificate of public convenience and 
        necessity (including any Canadian certificates of public 
        convenience and necessity) is issued for the project. A final 
        certificate shall be considered to have been issued when all 
        certificates of public convenience and necessity have been 
        issued that are required for the initial transportation of 
        commercially economic quantities of natural gas from Alaska to 
        the continental United States.
  (b) Conditions.--
          (1) The Secretary may issue a Federal guarantee instrument 
        for a qualified infrastructure project only after a certificate 
        of public convenience and necessity under section 133(b) of 
        this Act or an amended certificate under section 9 of the 
        Alaska Natural Gas Transportation Act of 1976 (15 U.S.C. 719g) 
        has been issued for the project.
          (2) The Secretary may issue a Federal guarantee instrument 
        under this section for a qualified infrastructure project only 
        if the loan or other debt obligation guaranteed by the 
        instrument has been issued by an eligible lender.
          (3) The Secretary shall not require as a condition of issuing 
        a Federal guarantee instrument under this section any 
        contractual commitment or other form of credit support of the 
        sponsors (other than equity contribution commitments and 
        completion guarantees), or any throughput or other guarantee 
        from prospective shippers greater than such guarantees as shall 
        be required by the project owners.
  (c) Limitations on Amounts.--
          (1) The amount of loans and other debt obligations guaranteed 
        under this section for a qualified infrastructure project shall 
        not exceed 80 percent of the total capital costs of the 
        project, including interest during construction.
          (2) The principal amount of loans and other debt obligations 
        guaranteed under this section shall not exceed, in the 
        aggregate, $18,000,000,000, which amount shall be indexed for 
        United States dollar inflation from the date of enactment of 
        this Act, as measured by the Consumer Price Index.
  (d) Loan Terms and Fees.--
          (1) The Secretary may issue Federal guarantee instruments 
        under this section that take into account repayment profiles 
        and grace periods justified by project cash flows and project-
        specific considerations. The term of any loan guaranteed under 
        this section shall not exceed 30 years.
          (2) An eligible lender may assess and collect from the 
        borrower such other fees and costs associated with the 
        application and origination of the loan or other debt 
        obligation as are reasonable and customary for a project 
        finance transaction in the oil and gas sector.
  (e) Regulations.--The Secretary may issue regulations to carry out 
this section.
  (f) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as may be necessary to cover the cost of loan 
guarantees, as defined by section 502(5) of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a(5)). Such sums shall remain available until 
expended.
  (g) Definitions.--In this section, the following definitions apply:
          (1) The term ``Consumer Price Index'' means the Consumer 
        Price Index for all-urban consumers, United States city 
        average, as published by the Bureau of Labor Statistics, or if 
        such index shall cease to be published, any successor index or 
        reasonable substitute thereof.
          (2) The term ``eligible lender'' means any non-Federal 
        qualified institutional buyer (as defined by section 
        230.144A(a) of title 17, Code of Federal Regulations (or any 
        successor regulation), known as Rule 144A(a) of the Securities 
        and Exchange Commission and issued under the Securities Act of 
        1933), including--
                  (A) a qualified retirement plan (as defined in 
                section 4974(c) of the Internal Revenue Code of 1986 
                (26 U.S.C. 4974(c)) that is a qualified institutional 
                buyer; and
                  (B) a governmental plan (as defined in section 414(d) 
                of the Internal Revenue Code of 1986 (26 U.S.C. 414(d)) 
                that is a qualified institutional buyer.
          (3) The term ``Federal guarantee instrument'' means any 
        guarantee or other pledge by the Secretary to pledge the full 
        faith and credit of the United States to pay all of the 
        principal and interest on any loan or other debt obligation 
        entered into by a holder of a certificate of public convenience 
        and necessity.
          (4) The term ``qualified infrastructure project'' means an 
        Alaskan natural gas transportation project consisting of the 
        design, engineering, finance, construction, and completion of 
        pipelines and related transportation and production systems 
        (including gas treatment plants), and appurtenances thereto, 
        that are used to transport natural gas from the Alaska North 
        Slope to the continental United States.
          (5) The term ``Secretary'' means the Secretary of Energy.

SEC. 145. SENSE OF CONGRESS ON NATURAL GAS DEMAND.

  It is the sense of Congress that:
          (1) North American demand for natural gas will increase 
        dramatically over the course of the next several decades.
          (2) Both the Alaska Natural Gas Pipeline and the McKenzie 
        Delta Natural Gas project in Canada will be necessary to help 
        meet the increased demand for natural gas in North America.
          (3) Federal and State officials should work together with 
        officials in Canada to ensure both projects can move forward in 
        a mutually beneficial fashion.
          (4) Federal and State officials should acknowledge that the 
        smaller scope, fewer permitting requirements and lower cost of 
        the McKenzie Delta project means it will most likely be 
        completed before the Alaska Natural Gas Pipeline.
          (5) Lower 48 and Canadian natural gas production alone will 
        not be able to meet all domestic demand in the coming decades.
          (6) As a result, natural gas delivered from Alaska's North 
        Slope will not displace or reduce the commercial viability of 
        Canadian natural gas produced from the McKenzie Delta nor 
        production from the Lower 48.

                             TITLE II--COAL

                Subtitle A--Clean Coal Power Initiative

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

  (a) Clean Coal Power Initiative.-- There is authorized to be 
appropriated to the Secretary of Energy (in this subtitle, referred to 
as ``Secretary'') to carry out the activities authorized by this 
subtitle $200,000,000 for each of the fiscal years 2003 through 2011, 
to remain available until expended.

SEC. 202. PROJECT CRITERIA.

  (a) In General.--The Secretary shall not provide funding under this 
subtitle for any project that does not advance efficiency, 
environmental performance, and cost competitiveness well beyond the 
level of technologies that are in operation or have been demonstrated 
as of the date of the enactment of this Act.
  (b) Technical Criteria for Gasification.--In allocating the funds 
made available under section 201, the Secretary shall ensure that at 
least 80 percent of the funds are used for coal-based gasification 
technologies or coal-based projects that include gasification combined 
cycle, gasification fuel cells, gasification co-production, or hybrid 
gasification/combustion. The Secretary shall set technical milestones 
specifying emissions levels that coal gasification projects must be 
designed to and reasonably expected to achieve. The milestones shall 
get more restrictive through the life of the program. The milestones 
shall be designed to achieve by 2020 coal gasification projects able 
to--
          (1) remove 99 percent of sulfur dioxide;
          (2) emit no more than .05 lbs of NOx per million 
        BTU;
          (3) achieve substantial reductions in mercury emissions; and
          (4) achieve a thermal efficiency of--
                  (A) 60 percent for coal of more than 9,000 Btu;
                  (B) 59 percent for coal of 7,000 to 9,000 Btu; and
                  (C) 57 percent for coal of less than 7,000 Btu.
          (c) Technical Criteria for Other Projects.--For projects not 
        described in subsection (b), the Secretary shall set technical 
        milestones specifying emissions levels that the projects must 
        be designed to and reasonably expected to achieve. The 
        milestones shall get more restrictive through the life of the 
        program. The milestones shall be designed to achieve by 2010 
        projects able to--
          (1) remove 97 percent of sulfur dioxide;
          (2) emit no more than .08 lbs of NOx per million 
        BTU;
          (3) achieve substantial reductions in mercury emissions; and
          (4) achieve a thermal efficiency of--
                  (A) 45 percent for coal of more than 9,000 Btu;
                  (B) 44 percent for coal of 7,000 to 9,000 Btu; and
                  (C) 42 percent for coal of less than 7,000 Btu.
  (d) Existing Units.--In the case of projects at existing units, in 
lieu of the thermal efficiency requirements set forth in paragraphs 
(b)(4) and (c)(4), the projects shall be designed to achieve an overall 
thermal design efficiency improvement compared to the efficiency of the 
unit as operated, of not less than--
          (1) 7 percent for coal of more than 9,000 Btu;
          (2) 6 percent for coal of 7,000 to 9,000 Btu; or
          (3) 4 percent for coal of less than 7,000 Btu.
  (e) Permitted Uses.--In allocating funds made available in this 
section, the Secretary may allocate funds to projects that include, as 
part of the project, the separation and capture of carbon dioxide.
  (f) Consultation.--Before setting the technical milestones under 
subsections (b) and (c), the Secretary shall consult with the 
Administrator of the Environmental Protection Agency and interested 
entities, including coal producers, industries using coal, 
organizations to promote coal or advanced coal technologies, 
environmental organizations, and organizations representing workers.
  (g) Financial Criteria.--The Secretary shall not provide a funding 
award under this title unless the recipient has documented to the 
satisfaction of the Secretary that--
          (1) the award recipient is financially viable without the 
        receipt of additional Federal funding;
          (2) the recipient will provide sufficient information to the 
        Secretary for the Secretary to ensure that the award funds are 
        spent efficiently and effectively; and
          (3) a market exists for the technology being demonstrated or 
        applied, as evidenced by statements of interest in writing from 
        potential purchasers of the technology.
  (h) Financial Assistance.--The Secretary shall provide financial 
assistance to projects that meet the requirements of this section and 
are likely to--
          (1) achieve overall cost reductions in the utilization of 
        coal to generate useful forms of energy;
          (2) improve the competitiveness of coal among various forms 
        of energy; and
          (3) demonstrate methods and equipment that are applicable to 
        25 percent of the electricity generating facilities that use 
        coal as the primary feedstock as of the date of the enactment 
        of this Act.
  (i) Federal Share.--The Federal share of the cost of a coal or 
related technology project funded by the Secretary shall not exceed 50 
percent.
  (j) Applicability.--No technology, or level of emission reduction, 
shall be treated as adequately demonstrated for purposes of section 111 
of the Clean Air Act, achievable for purposes of section 169 of that 
Act, or achievable in practice for purposes of section 171 of that Act 
solely by reason of the use of such technology, or the achievement of 
such emission reduction, by one or more facilities receiving assistance 
under this title.

SEC. 203. REPORTS.

  (a) Ten-Year Plan.--By September 30, 2004, the Secretary shall 
transmit to Congress a report, with respect to section 202(a), a 10-
year plan containing--
          (1) a detailed assessment of whether the aggregate funding 
        levels provided under section 201 are appropriate funding 
        levels for that program;
          (2) a detailed description of how proposals will be solicited 
        and evaluated, including a list of all activities expected to 
        be undertaken;
          (3) a detailed list of technical miles stones for each coal 
        and related technology that will be pursued; and
          (4) a detailed description of how the program will avoid 
        problems enumerated in General Accounting Office reports on the 
        Clean Coal Technology Program, including problems that have 
        resulted in unspent funds and projects that failed either 
        financially or scientifically.
  (b) Technical Milestones.--Not later than 1 year after the date of 
the enactment of this Act, and once every 2 years thereafter through 
2011, the Secretary, in consultation with other appropriate Federal 
agencies, shall transmit to the Congress, a report describing--
          (1) the technical milestones set forth in section 212 and how 
        those milestones ensure progress toward meeting the 
        requirements of subsections (b) and (c) of section 212; and
          (2) the status of projects funded under this title.

SEC. 204. CLEAN COAL CENTERS OF EXCELLENCE.

  As part of the program authorized in section 211, the Secretary shall 
award competitive, merit-based grants to universities for the 
establishment of Centers of Excellence for Energy Systems of the 
Future. The Secretary shall provide grants to universities that can 
show the greatest potential for advancing new clean coal technologies.

                    Subtitle B--Federal Coal Leases

SEC. 211. REPEAL OF THE 160-ACRE LIMITATION FOR COAL LEASES.

  Section 3 of the Mineral Leasing Act (30 U.S.C. 203) is amended by 
striking all the text in the first sentence after ``upon'' and 
inserting the following: ``a finding by the Secretary that it (1) would 
be in the interest of the United States, (2) would not displace a 
competitive interest in the lands, and (3) would not include lands or 
deposits that can be developed as part of another potential or existing 
operation, secure modifications of the original coal lease by including 
additional coal lands or coal deposits contiguous or cornering to those 
embraced in such lease, but in no event shall the total area added by 
such modifications to an existing coal lease exceed 320 acres, or add 
acreage larger than that in the original lease.''.

SEC. 212. MINING PLANS.

  Section 2(d)(2) of the Mineral Leasing Act (30 U.S.C. 202a(2)) is 
amended--
          (1) by inserting ``(A)'' after ``(2)''; and
          (2) by adding at the end the following:
                  ``(B) The Secretary may establish a period of more 
                than forty years if the Secretary determines that the 
                longer period will ensure the maximum economic recovery 
                of a coal deposit, or the longer period is in the 
                interest of the orderly, efficient, or economic 
                development of a coal resource.''.

SEC. 213. PAYMENT OF ADVANCE ROYALTIES UNDER COAL LEASES.

  Section 7(b) of the Mineral Leasing Act of 1920 (30 U.S.C. 207(b)) is 
amended by striking all after ``Secretary).'' through to ``a lease.'' 
and inserting: ``The aggregate number of years during the period of any 
lease for which advance royalties may be accepted in lieu of the 
condition of continued operation shall not exceed twenty. The amount of 
any production royalty paid for any year shall be reduced (but not 
below 0) by the amount of any advance royalties paid under such lease 
to the extent that such advance royalties have not been used to reduce 
production royalties for a prior year.''.

SEC. 214. ELIMINATION OF DEADLINE FOR SUBMISSION OF COAL LEASE 
                    OPERATION AND RECLAMATION PLAN.

  Section 7(c) of the Mineral Leasing Act (30 U.S.C. 207(c)) is amended 
by striking ``and not later than three years after a lease is 
issued,''.

SEC. 215. APPLICATION OF AMENDMENTS.

  The amendments made by this Act apply with respect to any coal lease 
issued on or after the date of enactment of this Act, and, with respect 
to any coal lease issued before the date of enactment of this Act, upon 
the date of readjustment of the lease as provided for by section 7(a) 
of the Mineral Leasing Act, or upon request by the lessee, prior to 
such date.

         Subtitle C--Powder River Basin Shared Mineral Estates

SEC. 221. RESOLUTION OF FEDERAL RESOURCE DEVELOPMENT CONFLICTS IN THE 
                    POWDER RIVER BASIN.

  The Secretary of the Interior shall--
          (1) undertake a review of existing authorities to resolve 
        conflicts between the development of Federal coal and the 
        development of Federal and non-Federal coalbed methane in the 
        Powder River Basin in Wyoming and Montana; and
          (2) not later than 6 months after the enactment of this Act, 
        report to the Congress on alternatives to resolve these 
        conflicts and identification of a preferred alternative with 
        specific legislative language, if any, required to implement 
        the preferred alternative.

                        TITLE III--INDIAN ENERGY

SEC. 301. SHORT TITLE.

  This title may be cited as the ``Indian Tribal Energy Development and 
Self-Determination Act of 2003''.

SEC. 302. OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS.

  (a) In General.--Title II of the Department of Energy Organization 
Act (42 U.S.C. 7131 et seq.) is amended by adding at the end the 
following:
             ``office of indian energy policy and programs
  ``Sec. 217.(a) Establishment.--There is established within the 
Department an Office of Indian Energy Policy and Programs (referred to 
in this section as the `Office'). The Office shall be headed by a 
Director, who shall be appointed by the Secretary and compensated at a 
rate equal to that of level IV of the Executive Schedule under section 
5315 of title 5, United States Code.
  ``(b) Duties of Director.--The Director shall in accordance with 
Federal policies promoting Indian self-determination and the purposes 
of this Act, provide, direct, foster, coordinate, and implement energy 
planning, education, management, conservation, and delivery programs of 
the Department that--
          ``(1) promote Indian tribal energy development, efficiency, 
        and use;
          ``(2) reduce or stabilize energy costs;
          ``(3) enhance and strengthen Indian tribal energy and 
        economic infrastructure relating to natural resource 
        development and electrification; and
          ``(4) electrify Indian tribal land and the homes of tribal 
        members.
                ``comprehensive indian energy activities
    ``Sec. 218. (a) Indian Energy Education Planning and Management 
Assistance.--
          ``(1) The Director shall establish programs within the Office 
        of Indian Energy Policy and Programs to assist Indian tribes in 
        meeting energy education, research and development, planning, 
        and management needs.
          ``(2) In carrying out this section, the Director may provide 
        grants, on a competitive basis, to an Indian tribe or tribal 
        consortium for use in carrying out--
                  ``(A) energy, energy efficiency, and energy 
                conservation programs;
                  ``(B) studies and other activities supporting tribal 
                acquisition of energy supplies, services, and 
                facilities;
                  ``(C) planning, construction, development, operation, 
                maintenance, and improvement of tribal electrical 
                generation, transmission, and distribution facilities 
                located on Indian land; and
                  ``(D) development, construction, and interconnection 
                of electric power transmission facilities located on 
                Indian land with other electric transmission 
                facilities.
          ``(3)(A) The Director may develop, in consultation with 
        Indian tribes, a formula for providing grants under this 
        section.
          ``(B) In providing a grant under this subsection, the 
        Director shall give priority to an application received from an 
        Indian tribe with inadequate electric service (as determined by 
        the Director).
          ``(4) The Secretary may promulgate such regulations as the 
        Secretary determines are necessary to carry out this 
        subsection.
          ``(5) There is authorized to be appropriated to carry out 
        this section $20,000,000 for each of fiscal years 2004 through 
        2011.
  ``(b) Loan Guarantee Program.--
          ``(1) Subject to paragraph (3), the Secretary may provide 
        loan guarantees (as defined in section 502 of the Federal 
        Credit Reform Act of 1990 (2 U.S.C. 661a)) for not more than 90 
        percent of the unpaid principal and interest due on any loan 
        made to any Indian tribe for energy development.
          ``(2) A loan guaranteed under this subsection shall be made 
        by--
                  ``(A) a financial institution subject to examination 
                by the Secretary; or
                  ``(B) an Indian tribe, from funds of the Indian 
                tribe.
          ``(3) The aggregate outstanding amount guaranteed by the 
        Secretary at any time under this subsection shall not exceed 
        $2,000,000,000.
          ``(4) The Secretary may promulgate such regulations as the 
        Secretary determines are necessary to carry out this 
        subsection.
          ``(5) There are authorized to be appropriated such sums as 
        are necessary to carry out this subsection, to remain available 
        until expended.
          ``(6) Not later than 1 year from the date of enactment of 
        this section, the Secretary shall report to the Congress on the 
        financing requirements of Indian tribes for energy development 
        on Indian land.
  ``(c) Indian Energy Preference.--
          ``(1) In purchasing electricity or any other energy product 
        or byproduct, a Federal agency or department may give 
        preference to an energy and resource production enterprise, 
        partnership, consortium, corporation, or other type of business 
        organization the majority of the interest in which is owned and 
        controlled by 1 or more Indian tribes.
          ``(2) In carrying out this subsection, a Federal agency or 
        department shall not--
                  ``(A) pay more than the prevailing market price for 
                an energy product or byproduct; and
                  ``(B) obtain less than prevailing market terms and 
                conditions.''.
  (b) Conforming Amendments.--
          (1) The table of contents of the Department of Energy 
        Organization Act (42 U.S.C. prec. 7101) is amended--
                  (A) in the item relating to section 209, by striking 
                ``Section'' and inserting ``Sec.''; and
                  (B) by striking the items relating to sections 213 
                through 216 and inserting the following:

``Sec. 213. Establishment of policy for National Nuclear Security 
Administration.
``Sec. 214. Establishment of security, counterintelligence, and 
intelligence policies.
``Sec. 215. Office of Counterintelligence.
``Sec. 216. Office of Intelligence.
``Sec. 217. Office of Indian Energy Policy and Programs.
``Sec. 218. Comprehensive Indian Energy Activities.''.
          (2) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Indian Energy Policy and 
        Programs, Department of Energy.'' after ``Inspector General, 
        Department of Energy.''.

SEC. 303. INDIAN ENERGY.

  Title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.) 
is amended to read as follows:

                      ``TITLE XXVI--INDIAN ENERGY

``SEC. 2601. DEFINITIONS.

  ``For purposes of this title:
          ``(1) The term `Director' means the Director of the Office of 
        Indian Energy Policy and Programs.
          ``(2) The term `Indian land' means--
                  ``(A) any land located within the boundaries of an 
                Indian reservation, pueblo, or rancheria;
                  ``(B) any land not located within the boundaries of 
                an Indian reservation, pueblo, or rancheria, the title 
                to which is held--
                          ``(i) in trust by the United States for the 
                        benefit of an Indian tribe;
                          ``(ii) by an Indian tribe, subject to 
                        restriction by the United States against 
                        alienation; or
                          ``(iii) by a dependent Indian community; and
                  ``(C) land conveyed to a Native Corporation under the 
                Alaska Native Claims Settlement Act (43 U.S.C. 1601 et 
                seq.).
          ``(3) The term `Indian reservation' includes--
                  ``(A) an Indian reservation in existence in any State 
                or States as of the date of enactment of this 
                paragraph;
                  ``(B) a public domain Indian allotment;
                  ``(C) a former reservation in the State of Oklahoma;
                  ``(D) a parcel of land owned by a Native Corporation 
                under the Alaska Native Claims Settlement Act (43 
                U.S.C. 1601 et seq.); and
                  ``(E) a dependent Indian community located within the 
                borders of the United States, regardless of whether the 
                community is located--
                          ``(i) on original or acquired territory of 
                        the community; or
                          ``(ii) within or outside the boundaries of 
                        any particular State.
          ``(4) The term `Indian tribe' has the meaning given the term 
        in section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).
          ``(5) The term `Native Corporation' has the meaning given the 
        term in section 3 of the Alaska Native Claims Settlement Act 
        (43 U.S.C. 1602).
          ``(6) The term `organization' means a partnership, joint 
        venture, limited liability company, or other unincorporated 
        association or entity that is established to develop Indian 
        energy resources.
          ``(7) The term `Program' means the Indian energy resource 
        development program established under section 2602(a).
          ``(8) The term `Secretary' means the Secretary of the 
        Interior.
          ``(9) The term `tribal consortium' means an organization that 
        consists of 2 or more entities, at least 1 of which is an 
        Indian tribe.
          ``(10) The term `tribal land' means any land or interests in 
        land owned by any Indian tribe, band, nation, pueblo, 
        community, rancheria, colony or other group, title to which is 
        held in trust by the United States or which is subject to a 
        restriction against alienation imposed by the United States.
          ``(11) The term `vertical integration of energy resources' 
        means any project or activity that promotes the location and 
        operation of a facility (including any pipeline, gathering 
        system, transportation system or facility, or electric 
        transmission facility), on or near Indian land to process, 
        refine, generate electricity from, or otherwise develop energy 
        resources on, Indian land.

``SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

  ``(a) In General.--To assist Indian tribes in the development of 
energy resources and further the goal of Indian self-determination, the 
Secretary shall establish and implement an Indian energy resource 
development program to assist Indian tribes and tribal consortia in 
achieving the purposes of this title.
  ``(b) Grants and Loans.--In carrying out the program, the Secretary 
shall--
          ``(1) provide development grants to Indian tribes and tribal 
        consortia for use in developing or obtaining the managerial and 
        technical capacity needed to develop energy resources on Indian 
        land;
          ``(2) provide grants to Indian tribes and tribal consortia 
        for use in carrying out projects to promote the vertical 
        integration of energy resources, and to process, use, or 
        develop those energy resources, on Indian land; and
          ``(3) provide low-interest loans to Indian tribes and tribal 
        consortia for use in the promotion of energy resource 
        development and vertical integration or energy resources on 
        Indian land.
  ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated to carry out this section such sums as are necessary for 
each of fiscal years 2004 through 2014.

``SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

  ``(a) Grants.--The Secretary may provide to Indian tribes and tribal 
consortia, on an annual basis, grants for use in developing, 
administering, implementing, and enforcing tribal laws (including 
regulations) governing the development and management of energy 
resources on Indian land.
  ``(b) Use of Funds.--Funds from a grant provided under this section 
may be used by an Indian tribe or tribal consortium for--
          ``(1) the development of a tribal energy resource inventory 
        or tribal energy resource on Indian land;
          ``(2) the development of a feasibility study or other report 
        necessary to the development of energy resources on Indian 
        land;
          ``(3) the development and enforcement of tribal laws and the 
        development of technical infrastructure to protect the 
        environment under applicable law; or
          ``(4) the training of employees that--
                  ``(A) are engaged in the development of energy 
                resources on Indian land; or
                  ``(B) are responsible for protecting the environment.
  ``(c) Other Assistance.--To the maximum extent practicable, the 
Secretary and the Secretary of Energy shall make available to Indian 
tribes and tribal consortia scientific and technical data for use in 
the development and management of energy resources on Indian land.

``SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING 
                    ENERGY DEVELOPMENT OR TRANSMISSION.

  ``(a) Leases and Agreements.--Subject to the provisions of this 
section--
          ``(1) an Indian tribe may, at its discretion, enter into a 
        lease or business agreement for the purpose of energy 
        development, including a lease or business agreement for--
                  ``(A) exploration for, extraction of, processing of, 
                or other development of energy resources on tribal 
                land; and
                  ``(B) construction or operation of an electric 
                generation, transmission, or distribution facility 
                located on tribal land; or a facility to process or 
                refine energy resources developed on tribal land; and
          ``(2) a lease or business agreement described in paragraph 
        (1) shall not require the approval of the Secretary under 
        section 2103 of the Revised Statutes (25 U.S.C. 81) or any 
        other provision of law, if--
                  ``(A) the lease or business agreement is executed in 
                accordance with a tribal energy resource agreement 
                approved by the Secretary under subsection (e);
                  ``(B) the term of the lease or business agreement 
                does not exceed--
                          ``(i) 30 years; or
                          ``(ii) in the case of a lease for the 
                        production of oil and gas resources, 10 years 
                        and as long thereafter as oil or gas is 
                        produced in paying quantities; and
                  ``(C) the Indian tribe has entered into a tribal 
                energy resource agreement with the Secretary, as 
                described in subsection (e), relating to the 
                development of energy resources on tribal land 
                (including an annual trust asset evaluation of the 
                activities of the Indian tribe conducted in accordance 
                with the agreement).
  ``(b) Rights-of-Way for Pipelines or Electric Transmission or 
Distribution Lines.--An Indian tribe may grant a right-of-way over 
tribal land for a pipeline or an electric transmission or distribution 
line without specific approval by the Secretary if--
          ``(1) the right-of-way is executed in accordance with a 
        tribal energy resource agreement approved by the Secretary 
        under subsection (e);
          ``(2) the term of the right-of-way does not exceed 30 years;
          ``(3) the pipeline or electric transmission or distribution 
        line serves--
                  ``(A) an electric generation, transmission, or 
                distribution facility located on tribal land; or
                  ``(B) a facility located on tribal land that 
                processes or refines energy resources developed on 
                tribal land; and
          ``(4) the Indian tribe has entered into a tribal energy 
        resource agreement with the Secretary, as described in 
        subsection (e), relating to the development of energy resources 
        on tribal land (including an annual trust asset evaluation of 
        the activities of the Indian tribe conducted in accordance with 
        the agreement.
  ``(c) Renewals.--A lease or business agreement entered into or a 
right-of-way granted by an Indian tribe under this section may be 
renewed at the discretion of the Indian tribe in accordance with this 
section.
  ``(d) Validity.--No lease, business agreement, or right-of-way under 
this section shall be valid unless the lease, business agreement, or 
right-of-way is authorized in accordance with tribal energy resource 
agreements approved by the Secretary under subsection (e).
  ``(e) Tribal Energy Resource Agreements.--
          ``(1) On promulgation of regulations under paragraph (9), an 
        Indian tribe may submit to the Secretary for approval a tribal 
        energy resource agreement governing leases, business 
        agreements, and rights-of-way under this section.
          ``(2)(A) Not later than 180 days after the date on which the 
        Secretary receives a tribal energy resource agreement submitted 
        by an Indian tribe under paragraph (1) (or such later date as 
        may be agreed to by the Secretary and the Indian tribe), the 
        Secretary shall approve or disapprove the tribal energy 
        resource agreement.
          ``(B) The Secretary shall approve a tribal energy resource 
        agreement submitted under paragraph (1) if--
                  ``(i) the Secretary determines that the Indian tribe 
                has demonstrated that the Indian tribe has sufficient 
                capacity to regulate the development of energy 
                resources of the Indian tribe; and
                  ``(ii) the tribal energy resource agreement includes 
                provisions that, with respect to a lease, business 
                agreement, or right-of-way under this section--
                          ``(I) ensure the acquisition of necessary 
                        information from the applicant for the lease, 
                        business agreement, or right-of-way;
                          ``(II) address the term of the lease or 
                        business agreement or the term of conveyance of 
                        the right-of-way;
                          ``(III) address amendments and renewals;
                          ``(IV) address consideration for the lease, 
                        business agreement, or right-of-way;
                          ``(V) address technical or other relevant 
                        requirements;
                          ``(VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                          ``(VII) ensure compliance with all applicable 
                        environmental laws;
                          ``(VIII) identify final approval authority;
                          ``(IX) provide for public notification of 
                        final approvals;
                          ``(X) establish a process for consultation 
                        with any affected States concerning potential 
                        off-reservation impacts associated with the 
                        lease, business agreement, or right-of-way; and
                          ``(XI) describe the remedies for breach of 
                        the lease, agreement, or right-of-way.
          ``(C) Tribal energy resource agreements submitted under 
        paragraph (1) shall establish, and include provisions to ensure 
        compliance with, an environmental review process that, with 
        respect to a lease, business agreement, or right-of-way under 
        this section, provides for--
                  ``(i) the identification and evaluation of all 
                significant environmental impacts (as compared with a 
                no-action alternative), including effects on cultural 
                resources;
                  ``(ii) the identification of proposed mitigation;
                  ``(iii) a process for ensuring that the public is 
                informed of and has an opportunity to comment on any 
                proposed lease, business agreement, or right-of-way 
                before tribal approval of the lease, business 
                agreement, or right-of-way (or any amendment to or 
                renewal of the lease, business agreement, or right-of-
                way); and
                  ``(iv) sufficient administrative support and 
                technical capability to carry out the environmental 
                review process.
          ``(D) A tribal energy resource agreement negotiated between 
        the Secretary and an Indian tribe in accordance with this 
        subsection shall include--
                  ``(i) provisions requiring the Secretary to conduct 
                an annual trust asset evaluation to monitor the 
                performance of the activities of the Indian tribe 
                associated with the development of energy resources on 
                tribal land by the Indian tribe; and
                  ``(ii) in the case of a finding by the Secretary of 
                imminent jeopardy to a physical trust asset, provisions 
                authorizing the Secretary to reassume responsibility 
                for activities associated with the development of 
                energy resources on tribal land.
          ``(3) The Secretary shall provide notice and opportunity for 
        public comment on tribal energy resource agreements submitted 
        under paragraph (1).
          ``(4) If the Secretary disapproves a tribal energy resource 
        agreement submitted by an Indian tribe under paragraph (1), the 
        Secretary shall--
                  ``(A) notify the Indian tribe in writing of the basis 
                for the disapproval;
                  ``(B) identify what changes or other actions are 
                required to address the concerns of the Secretary; and
                  ``(C) provide the Indian tribe with an opportunity to 
                revise and resubmit the tribal energy resource 
                agreement.
          ``(5) If an Indian tribe executes a lease or business 
        agreement or grants a right-of-way in accordance with a tribal 
        energy resource agreement approved under this subsection, the 
        Indian tribe shall, in accordance with the process and 
        requirements set forth in the Secretary's regulations adopted 
        pursuant to subsection (e)(9), provide to the Secretary--
                  ``(A) a copy of the lease, business agreement, or 
                right-of-way document (including all amendments to and 
                renewals of the document); and
                  ``(B) in the case of a tribal energy resource 
                agreement or a lease, business agreement, or right-of-
                way that permits payment to be made directly to the 
                Indian tribe, documentation of those payments 
                sufficient to enable the Secretary to discharge the 
                trust responsibility of the United States as 
                appropriate under applicable law.
          ``(6) The Secretary shall continue to have a trust obligation 
        to ensure that the rights of an Indian tribe are protected in 
        the event of a violation of the terms of any lease, business 
        agreement or right-of-way by any other party to the lease, 
        business agreement, or right-of-way.
          ``(7)(A) The United States shall not be liable for any loss 
        or injury sustained by any party (including an Indian tribe or 
        any member of an Indian tribe) to a lease, business agreement, 
        or right-of-way executed in accordance with tribal energy 
        resource agreements approved under this subsection.
          ``(B) On approval of a tribal energy resource agreement of an 
        Indian tribe under paragraph (1), the Indian tribe shall be 
        stopped from asserting a claim against the United States on the 
        ground that Secretary should not have approved the Tribal 
        energy resource agreement.
          ``(8)(A) In this paragraph, the term 'interested party' means 
        any person or entity the interests of which have sustained or 
        will sustain a significant adverse impact as a result of the 
        failure of an Indian tribe to comply with a tribal energy 
        resource agreement of the Indian tribe approved by the 
        Secretary under paragraph (2).
          ``(B) After exhaustion of tribal remedies, and in accordance 
        with the process and requirements set forth in regulations 
        adopted by the Secretary pursuant to subsection (e)(9), an 
        interested party may submit to the Secretary a petition to 
        review compliance of an Indian tribe with a tribal energy 
        resource agreement of the Indian tribe approved under this 
        subsection.
          ``(C) If the Secretary determines that an Indian tribe is not 
        in compliance with a tribal energy resource agreement approved 
        under this subsection, the Secretary shall take such action as 
        is necessary to compel compliance, including--
                  ``(i) suspending a lease, business agreement, or 
                right-of-way under this section until an Indian tribe 
                is in compliance with the approved tribal energy 
                resource agreement; and
                  ``(ii) rescinding approval of the tribal energy 
                resource agreement and reassuming the responsibility 
                for approval of any future leases, business agreements, 
                or rights-of-way associated with an energy pipeline or 
                distribution line described in subsections (a) and (b).
          ``(D) If the Secretary seeks to compel compliance of an 
        Indian tribe with an approved tribal energy resource agreement 
        under subparagraph (C)(ii), the Secretary shall--
                  ``(i) make a written determination that describes the 
                manner in which the tribal energy resource agreement 
                has been violated;
                  ``(ii) provide the Indian tribe with a written notice 
                of the violation together with the written 
                determination; and
                  ``(iii) before taking any action described in 
                subparagraph (C)(ii) or seeking any other remedy, 
                provide the Indian tribe with a hearing and a 
                reasonable opportunity to attain compliance with the 
                tribal energy resource agreement.
          ``(E)(i) An Indian tribe described in subparagraph (D) shall 
        retain all rights to appeal as provided in regulations 
        promulgated by the Secretary.
          ``(ii) The decision of the Secretary with respect to an 
        appeal described in clause (i), after any agency appeal 
        provided for by regulation, shall constitute a final agency 
        action.
          ``(9) Not later than 180 days after the date of enactment of 
        the Indian Tribal Energy Development and Self-Determination Act 
        of 2003, the Secretary shall promulgate regulations that 
        implement the provisions of this subsection, including--
                  ``(A) criteria to be used in determining the capacity 
                of an Indian tribe described in paragraph (2)(B)(i), 
                including the experience of the Indian tribe in 
                managing natural resources and financial and 
                administrative resources available for use by the 
                Indian tribe in implementing the approved tribal energy 
                resource agreement of the Indian tribe; and
                  ``(B) a process and requirements in accordance with 
                which an Indian tribe may--
                          ``(i) voluntarily rescind an approved tribal 
                        energy resource agreement approved by the 
                        Secretary under this subsection; and
                          ``(ii) return to the Secretary the 
                        responsibility to approve any future leases, 
                        business agreements, and rights-of-way 
                        described in this subsection.
  ``(f) No Effect on Other Law.--Nothing in this section affects the 
application of--
          ``(1) any Federal environmental law;
          ``(2) the Surface Mining Control and Reclamation Act of 1977 
        (30 U.S.C. 1201 et seq.); or
          ``(3) except as otherwise provided in this title, the Indian 
        Mineral Development Act of 1982 (25 U.S.C. 2101 et seq.).

``SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

  ``(a) Definitions.--In this section:
          ``(1) The term `Administrator' means the Administrator of the 
        Bonneville Power Administration and the Administrator of the 
        Western Area Power Administration.
          ``(2) The term `power marketing administration' means--
                  ``(A) the Bonneville Power Administration;
                  ``(B) the Western Area Power Administration; and
                  ``(C) any other power administration the power 
                allocation of which is used by or for the benefit of an 
                Indian tribe located in the service area of the 
                administration.
  ``(b) Encouragement of Indian Tribal Energy Development.--Each 
Administrator shall encourage Indian tribal energy development by 
taking such actions as are appropriate, including administration of 
programs of the Bonneville Power Administration and the Western Area 
Power Administration, in accordance with this section.
  ``(c) Action by the Administrator.--In carrying out this section, and 
in accordance with existing law--
          ``(1) each Administrator shall consider the unique 
        relationship that exists between the United States and Indian 
        tribes.
          ``(2) power allocations from the Western Area Power 
        Administration to Indian tribes may be used to meet firming and 
        reserve needs of Indian-owned energy projects on Indian land;
          ``(3) the Administrator of the Western Area Power 
        Administration may purchase power from Indian tribes to meet 
        the firming and reserve requirements of the Western Area Power 
        Administration; and
          ``(4) each Administrator shall not pay more than the 
        prevailing market price for an energy product nor obtain less 
        than prevailing market terms and conditions.
  ``(d) Assistance for Transmission System Use.--
          ``(1) An Administrator may provide technical assistance to 
        Indian tribes seeking to use the high-voltage transmission 
        system for delivery of electric power.
          ``(2) The costs of technical assistance provided under 
        paragraph (1) shall be funded by the Secretary of Energy using 
        nonreimbursable funds appropriated for that purpose, or by the 
        applicable Indian tribes.
  ``(e) Power Allocation Study.--Not later than 2 years after the date 
of enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary of Energy shall submit to the 
Congress a report that--
          ``(1) describes the use by Indian tribes of Federal power 
        allocations of the Western Area Power Administration (or power 
        sold by the Southwestern Power Administration) and the 
        Bonneville Power Administration to or for the benefit of Indian 
        tribes in service areas of those administrations; and
          ``(2) identifies--
                  ``(A) the quantity of power allocated to Indian 
                tribes by the Western Area Power Administration;
                  ``(B) the quantity of power sold to Indian tribes by 
                other power marketing administrations; and
                  ``(C) barriers that impede tribal access to and use 
                of Federal power, including an assessment of 
                opportunities to remove those barriers and improve the 
                ability of power marketing administrations to 
                facilitate the use of Federal power by Indian tribes.
  ``(f) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $750,000, which shall remain 
available until expended and shall not be reimbursable.

``SEC. 2606. INDIAN MINERAL DEVELOPMENT REVIEW.

  ``(a) In General.--The Secretary shall conduct a review of all 
activities being conducted under the Indian Mineral Development Act of 
1982 (25 U.S.C. 2101 et seq.) as of that date.
  ``(b) Report.--Not later than 1 year after the date of enactment of 
the Indian Tribal Energy Development and Self-Determination Act of 
2003, the Secretary shall submit to the Congress a report that 
includes--
          ``(1) the results of the review;
          ``(2) recommendations to ensure that Indian tribes have the 
        opportunity to develop Indian energy resources; and
          ``(3) an analysis of the barriers to the development of 
        energy resources on Indian land (including legal, fiscal, 
        market, and other barriers), along with recommendations for the 
        removal of those barriers.

``SEC. 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.

  ``(a) Study.--The Secretary, in coordination with the Secretary of 
the Army and the Secretary of the Interior, shall conduct a study of 
the cost and feasibility of developing a demonstration project that 
would use wind energy generated by Indian tribes and hydropower 
generated by the Army Corps of Engineers on the Missouri River to 
supply firming power to the Western Area Power Administration.
  ``(b) Scope of Study.--The study shall--
          ``(1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Missouri River dams 
        operated by the Army Corps of Engineers;
          ``(2) review historical purchase requirements and projected 
        purchase requirements for firming and the patterns of 
        availability and use of firming energy;
          ``(3) assess the wind energy resource potential on tribal 
        land and projected cost savings through a blend of wind and 
        hydropower over a 30-year period;
          ``(4) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
          ``(5) include an independent tribal engineer as a study team 
        member.
  ``(c) Report.--Not later than 1 year after the date of enactment of 
this Act, the Secretary and Secretary of the Army shall submit to 
Congress a report that describes the results of the study, including--
          ``(1) an analysis of the potential energy cost or benefits to 
        the customers of the Western Area Power Administration through 
        the blend of wind and hydropower;
          ``(2) an evaluation of whether a combined wind and hydropower 
        system can reduce reservoir fluctuation, enhance efficient and 
        reliable energy production, and provide Missouri River 
        management flexibility;
          ``(3) recommendations for a demonstration project that could 
        be carried out by the Western Area Power Administration in 
        partnership with an Indian tribal government or tribal 
        consortium to demonstrate the feasibility and potential of 
        using wind energy produced on Indian land to supply firming 
        energy to the Western Area Power Administration or any other 
        Federal power marketing agency; and
          ``(4) an identification of--
                  ``(A) the economic and environmental costs or 
                benefits to be realized through such a Federal-tribal 
                partnership; and
                  ``(B) the manner in which such a partnership could 
                contribute to the energy security of the United States.
  ``(d) Funding.--
          ``(1) There is authorized to be appropriated to carry out 
        this section $500,000, to remain available until expended.
          ``(2) Costs incurred by the Secretary in carrying out this 
        section shall be nonreimbursable.''.

SEC. 304. FOUR CORNERS TRANSMISSION LINE PROJECT.

  The Dine Power Authority, an enterprise of the Navajo Nation, shall 
be eligible to receive grants and other assistance as authorized by 
section 302 of this title and section 2602 of the Energy Policy Act of 
1992, as amended by this title, for activities associated with the 
development of a transmission line from the Four Corners Area to 
southern Nevada, including related power generation opportunities.

SEC. 305. ENERGY EFFICIENCY IN FEDERALLY ASSISTED HOUSING.

  (a) In General.--The Secretary of Housing and Urban Development shall 
promote energy conservation in housing that is located on Indian land 
and assisted with Federal resources through--
          (1) the use of energy-efficient technologies and innovations 
        (including the procurement of energy-efficient refrigerators 
        and other appliances);
          (2) the promotion of shared savings contracts; and
          (3) the use and implementation of such other similar 
        technologies and innovations as the Secretary of Housing and 
        Urban Development considers to be appropriate.
  (b) Amendment.--Section 202(2) of the Native American Housing and 
Self-Determination Act of 1996 (25 U.S.C. 4132(2)) is amended by 
inserting ``improvement to achieve greater energy efficiency,'' after 
``planning,''.

SEC. 306. CONSULTATION WITH INDIAN TRIBES.

  In carrying out this Act and the amendments made by this Act, the 
Secretary of Energy and the Secretary shall, as appropriate and to the 
maximum extent practicable, involve and consult with Indian tribes in a 
manner that is consistent with the Federal trust and the government-to-
government relationships between Indian tribes and the United States.

                       TITLE IV--NUCLEAR MATTERS

                Subtitle A-Price-Anderson Act Amendments

SEC. 401. SHORT TITLE.

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

SEC. 402. EXTENSION OF INDEMNIFICATION AUTHORITY.

  (a) Indemnification of Nuclear Regulatory Commission Licensees.--
Section 170c. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(c)) is 
amended--
          (1) in the subsection heading, by striking ``Licenses'' and 
        inserting ``Licensees'';
          (2) by striking ``licenses issued between August 30, 1954, 
        and December 31, 2003'' and inserting ``licenses issued after 
        August 30, 1954''; and
          (3) by striking ``With respect to any production or 
        utilization facility for which a construction permit is issued 
        between August 30, 1954, and December 31, 2003, the 
        requirements of this subsection shall apply to any license 
        issued for such facility subsequent to December 31, 2003.''
  (b) Indemnification of Department of Energy Contractors.--Section 
170d.(1)(A) of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) 
is amended by striking ``, until December 31, 2004,''.
  (c) Indemnification of Nonprofit Educational Institutions.--Section 
170k. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(k)) is amended--
          (1) by striking ``licenses issued between August 30,1954, and 
        August 1, 2002'' and replacing it with ``licenses issued after 
        August 30, 1954''; and
          (2) by striking ``With respect to any production or 
        utilization facility for which a construction permit is issued 
        between August 30, 1954, and August 1, 2002, the requirements 
        of this subsection shall apply to any license issued for such 
        facility subsequent to August 1, 2002.''

SEC. 403. MAXIMUM ASSESSMENT.

  Section 170 of the Atomic Energy Act of 1954 (42 U.S.C. 2210) is 
amended--
          (1) in the second proviso of the third sentence of subsection 
        b.(l)--
                  (A) by striking ``$63,000,000'' and inserting 
                ``$94,000,000''; and
                  (B) by striking ``$10,000,000 in any 1 year'' and 
                inserting ``$15,000,000 in any 1 year (subject to 
                adjustment for inflation under subsection t.)''; and
          (2) in subsection t.(1)--
                  (A) by inserting ``total and annual'' after ``amount 
                of the maximum'';
                  (B) by striking ``the date of the enactment of the 
                Price-Anderson Amendments Act of 1988'' and inserting 
                ``July 1, 2003''; and
                  (C) by striking ``such date of enactment'' and 
                inserting ``July 1, 2003''.

SEC. 404. DEPARTMENT OF ENERGY LIABILITY LIMIT.

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

SEC. 405. INCIDENTS OUTSIDE THE UNITED STATES.

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

SEC. 406. REPORTS.

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

SEC. 407. INFLATION ADJUSTMENT.

  Section 170t. of the Atomic Energy Act of 1954 (42 U.S.C. 2210(t)) is 
amended--
          (1) by redesignating paragraph (2) as paragraph (3); and
          (2) by adding after paragraph (1) the following:
          ``(2) The Secretary shall adjust the amount of 
        indemnification provided under an agreement of indemnification 
        under subsection d. not less than once during each 5-year 
        period following July 1, 2003, in accordance with the aggregate 
        percentage change in the Consumer Price Index since--
                  ``(A) that date, in the case of the first adjustment 
                under this paragraph; or
                  ``(B) the previous adjustment under this 
                paragraph.''.

SEC. 408. TREATMENT OF MODULAR REACTORS.

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

SEC. 409. APPLICABILITY.

  The amendments made by sections 403, 404, and 405 do not apply to a 
nuclear incident that occurs before the date of the enactment of this 
Act.

SEC. 410. CIVIL PENALTIES.

  (a) Repeal of Automatic Remission.--Section 234Ab.(2) of the Atomic 
Energy Act of 1954 (42 U.S.C. 2282a(b)(2)) is amended by striking the 
last sentence.
  (b) Limitation for Not-For-Profit Institutions.--Subsection d. of 
section 234A of the Atomic Energy Act of 1954 (42 U.S.C. 2282a(d)) is 
amended to read as follows:
  ``d.(1) Notwithstanding subsection a., in the case of any not-for-
profit contractor, subcontractor, or supplier, the total amount of 
civil penalties paid under subsection a. may not exceed the total 
amount of fees paid within any one-year period (as determined by the 
Secretary) under the contract under which the violation occurs.
  ``(2) For purposes of this section, the term ``not-for-profit'' means 
that no part of the net earnings of the contractor, subcontractor, or 
supplier inures to the benefit of any natural person or for-profit 
artificial person.''.
  (c) Effective Date.--The amendments made by this section shall not 
apply to any violation of the Atomic Energy Act of 1954 occurring under 
a contract entered into before the date of enactment of this section.

              Subtitle B--Deployment of New Nuclear Plants

SEC. 421. SHORT TITLE.

  This subtitle may be cited as the ``Nuclear Energy Finance Act of 
2003''.

SEC. 422. DEFINITIONS.

  For purposes of this subtitle:
          (1) The term ``advanced reactor design'' means a nuclear 
        reactor that enhances safety, efficiency, proliferation 
        resistance, or waste reduction compared to commercial nuclear 
        reactors in use in the United States on the date of enactment 
        of this Act.
          (2) The term ``eligible project costs'' means all costs 
        incurred by a project developer that are reasonably related to 
        the development and construction of a project under this 
        subtitle, including costs resulting from regulatory or 
        licensing delays.
          (3) The term ``financial assistance'' means a loan guarantee, 
        purchase agreement, or any combination of the foregoing.
          (4) The term ``loan guarantee'' means any guarantee or other 
        pledge by the Secretary to pay all or part of the principal and 
        interest on a loan or other debt obligation issued by a project 
        developer and funded by a lender.
          (5) The term ``project'' means any commercial nuclear power 
        facility for the production of electricity that uses one or 
        more advanced reactor designs.
          (6) The term ``project developer'' means an individual, 
        corporation, partnership, joint venture, trust, or other entity 
        that is primarily liable for payment of a project's eligible 
        costs.
          (7) The term ``purchase agreement'' means a contract to 
        purchase the electric energy produced by a project under this 
        subtitle.
          (8) The term ``Secretary'' means the Secretary of Energy.

SEC. 423. RESPONSIBILITIES OF THE SECRETARY.

  (a) Financial Assistance.--Subject to the requirements of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661 et seq.), the Secretary may, 
subject to appropriations, make available to project developers for 
eligible project costs such financial assistance as the Secretary 
determines is necessary to supplement private-sector financing for 
projects if he determines that such projects are needed to contribute 
to energy security, fuel or technology diversity, or clean air 
attainment goals. The Secretary shall prescribe such terms and 
conditions for financial assistance as the Secretary deems necessary or 
appropriate to protect the financial interests of the United States.
  (b) Requirements.--Approval criteria for financial assistance shall 
include--
          (1) the creditworthiness of the project;
          (2) the extent to which financial assistance would encourage 
        public-private partnerships and attract private-sector 
        investment;
          (3) the likelihood that financial assistance would hasten 
        commencement of the project; and
          (4) any other criteria the Secretary deems necessary or 
        appropriate.
  (c) Confidentiality.--The Secretary shall protect the confidentiality 
of any information that is certified by a project developer to be 
commercially sensitive.
  (d) Full Faith and Credit.--All financial assistance provided by the 
Secretary under this subtitle shall be general obligations of the 
United States backed by its full faith and credit.

SEC. 424. LIMITATIONS

  (a) Financial Assistance.--The total financial assistance per project 
provided by this subtitle shall not exceed fifty percent of eligible 
project costs.
  (b) Generation.--The total electrical generation capacity of all 
projects provided by this subtitle shall not exceed 8,400 megawatts.

SEC. 425. REGULATIONS

  Not later than 12 months from the date of enactment of this Act, the 
Secretary shall issue regulations to implement this subtitle.

      Subtitle C--Advanced Reactor Hydrogen Co-Generation Project

SEC. 431. PROJECT ESTABLISHMENT.

  The Secretary is directed to establish an Advanced Reactor Hydrogen 
Co-Generation Project.

SEC. 432. PROJECT DEFINITION.

  The project shall conduct the research, development, design, 
construction, and operation of a hydrogen production co-generation 
testbed that, relative to the current commercial reactors, enhances 
safety features, reduces waste production, enhances thermal 
efficiencies, increases proliferation resistance, and has the potential 
for improved economics and physical security in reactor siting. This 
testbed shall be constructed so as to enable research and development 
on advanced reactors of the type selected and on alternative approaches 
for reactor-based production of hydrogen.

SEC. 433. PROJECT MANAGEMENT.

  (a) Management.--The project shall be managed within the Department 
by the Office of Nuclear Energy Science and Technology.
  (b) Lead Laboratory.--The lead laboratory for the program, providing 
the site for the reactor construction, shall be the Idaho National 
Engineering and Environmental Laboratory (``INEEL'').
  (c) Steering Committee.--The Secretary shall establish a national 
steering committee with membership from the national laboratories, 
universities, and industry to provide advice to the Secretary and the 
Director of the Office of Nuclear Energy, Science and Technology on 
technical and program management aspects of the project.
  (d) Collaboration.--Project activities shall be conducted at INEEL, 
other national laboratories, universities, domestic industry, and 
international partners.

SEC. 434. PROJECT REQUIREMENTS.

  (a) Research and Development.--The project shall include planning, 
research and development, design, and construction of an advanced, 
next-generation, nuclear energy system suitable for enabling further 
research and development on advanced reactor technologies and 
alternative approaches for reactor-based generation of hydrogen.
          (1) The project shall utilize, where appropriate, extensive 
        reactor test capabilities resident at INEEL.
          (2) The project shall be designed to explore technical, 
        environmental, and economic feasibility of alternative 
        approaches for reactor-based hydrogen production.
          (3) The industrial lead for the project must be a United 
        States-based company.
  (b) International Collaboration.--The Secretary shall seek 
international cooperation, participation, and financial contribution in 
this program.
          (1) The project may contract for assistance from specialists 
        or facilities from member countries of the Generation IV 
        International Forum, the Russian Federation, or other 
        international partners where such specialists or facilities 
        provide access to cost-effective and relevant skills or test 
        capabilities.
          (2) International activities shall be coordinated with the 
        Generation IV International Forum.
          (3) The Secretary may combine this project with the 
        Generation IV Nuclear Energy Systems Program.
  (c) Demonstration.--The overall project, which may involve 
demonstration of selected project objectives in a partner nation, must 
demonstrate both electricity and hydrogen production and may provide 
flexibility, where technically and economically feasible in the design 
and construction, to enable tests of alternative reactor core and 
cooling configurations.
  (d) Partnerships.--The Secretary shall establish cost-shared 
partnerships with domestic industry or international participants for 
the research, development, design, construction and operation of the 
demonstration facility, and preference in determining the final project 
structure shall be given to an overall project which retains United 
States leadership while maximizing cost sharing opportunities and 
minimizing federal funding responsibilities.
  (e) Target Date.--The Secretary shall select technologies and develop 
the project to provide initial testing of either hydrogen production or 
electricity generation by 2010 or provide a report to Congress why this 
date is not feasible.
  (f) Waiver of Construction Timelines.--The Secretary is authorized to 
conduct the Advanced Reactor Hydrogen Co-Generation Project without the 
constraints of DOE Order 413.3 as deemed necessary to meet the 
specified operational date.
  (g) Competition.--The Secretary may fund up to two teams for up to 
one year to develop detailed proposals for competitive evaluation and 
selection of a single proposal and concept for further progress. The 
Secretary shall define the format of the competitive evaluation of 
proposals.
  (h) Use of Facilities.--Research facilities in industry, national 
laboratories, or universities either within the United States or with 
cooperating international partners may be used to develop the enabling 
technologies for the demonstration facility. Utilization of domestic 
university-based testbeds shall be encouraged to provide educational 
opportunities for student development.
  (i) Role of Nuclear Regulatory Commission.--The Secretary shall seek 
active participation of the Nuclear Regulatory Commission throughout 
the project to develop risk-based criteria for any future commercial 
development of a similar reactor architecture.
  (j) Report.--A comprehensive project plan shall be developed no later 
than April 30, 2004. The project plan shall be updated annually with 
each annual budget submission.

SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

  (a) Research, Development and Design Programs.--The following sums 
are authorized to be appropriated to the Secretary for all activities 
under this subtitle except for reactor construction:
          (1) For fiscal year 2004, $35,000,000;
          (2) For each of fiscal years 2005-2008, $150,000,000; and
          (3) For fiscal years beyond 2008, such funds as are needed 
        are authorized to be appropriated.
  (b) Reactor Construction.--The following sum is authorized to be 
appropriated to the Secretary for all project-related construction 
activities, to be available until expended, $500,000,000.

                   Subtitle D--Miscellaneous Matters

SEC. 441. URANIUM SALES AND TRANSFERS.

  Section 3112 of the USEC Privatization Act (42 U.S.C. 2297h-10) is 
amended by striking subsections (d) and (e) and inserting the 
following:
  ``(d)(1)(A) The aggregate annual deliveries of uranium in any form 
(including natural uranium concentrates, natural uranium hexafluoride, 
enriched uranium, and depleted uranium) sold or transferred for 
commercial nuclear power end uses by the United States Government shall 
not exceed 3,000,000 pounds U3O8 equivalent per 
year through calendar year 2009. Such aggregate annual deliveries shall 
not exceed 5,000,000 pounds U3O8 equivalent per 
year in calendar years 2010 and 2011. Such aggregate annual deliveries 
shall not exceed 7,000,000 pounds U3O8 equivalent 
in calendar year 2012. Such aggregate annual deliveries shall not 
exceed 10,000,000 pounds U3O8 equivalent per year 
in calendar year 2013 and each year thereafter. Any sales or transfers 
by the United States Government to commercial end users shall be 
limited to long-term contracts of no less than 3 years duration.
  ``(B) The recovery and extraction of the uranium component from 
contaminated uranium bearing materials from United States Government 
sites by commercial entities shall be the preferred method of making 
uranium available under this subsection. The uranium component 
contained in such contaminated materials shall be counted against the 
annual maximum deliveries set forth in this section, provided that 
uranium is sold to end users.
  ``(C) Sales or transfers of uranium by the United States Government 
for the following purposes are exempt from the provisions of this 
paragraph--
          ``(i) sales or transfers provided for under existing law for 
        use by the Tennessee Valley Authority in relation to the 
        Department of Energy's high-enriched uranium or tritium 
        programs;
          ``(ii) sales or transfers to the Department of Energy 
        research reactor sales program;
          ``(iii) the transfer of up to 3,293 metric tons of uranium to 
        the United States Enrichment Corporation to replace uranium 
        that the Secretary transferred, prior to privatization of the 
        United States Enrichment Corporation in July 1998, to the 
        Corporation on or about June 30, 1993, April 20, 1998, and May 
        18, 1998, and that does not meet commercial specifications;
          ``(iv) the sale or transfer of any uranium for emergency 
        purposes in the event of a disruption in supply to end users in 
        the United States;
          ``(v) the sale or transfer of any uranium in fulfillment of 
        the United States Government's obligations to provide security 
        of supply with respect to implementation of the Russian HEU 
        Agreement; and
          ``(vi) the sale or transfer of any enriched uranium for use 
        in an advanced commercial nuclear power plant in the United 
        States with nonstandard fuel requirements.
  ``(D) The Secretary may transfer or sell enriched uranium to any 
person for national security purposes, as determined by the Secretary.
  ``(2) Except as provided in subsections (b) and (c), and in paragraph 
(1)(B), clauses (i) through (iii) of paragraph (1)(C), and paragraph 
(1)(D) of this subsection, no sale or transfer of uranium in any form 
shall be made by the United States Government unless--
          ``(A) the President determines that the material is not 
        necessary for national security needs;
          ``(B) the price paid to the Secretary, if the transaction is 
        a sale, will not be less than the fair market value of the 
        material, as determined at the time that such material is 
        contracted for sale;
          ``(C) prior to any sale or transfer, the Secretary solicits 
        the written views of the Department of State and the National 
        Security Council with regard to whether such sale or transfer 
        would have any adverse effect on national security interests of 
        the United States, including interests related to the 
        implementation of the Russian HEU Agreement; and
          ``(D) neither the Department of State nor the National 
        Security Council objects to such sale or transfer.
  The Secretary shall endeavor to determine whether a sale or transfer 
is permitted under this paragraph within 30 days. The Secretary's 
determinations pursuant to this paragraph shall be made available to 
interested members of the public prior to authorizing any such sale or 
transfer.
  ``(3) Within 1 year after the date of enactment of this subsection 
and annually thereafter the Secretary shall undertake an assessment for 
the purpose of reviewing available excess Government uranium 
inventories, and determining, consistent with the procedures and 
limitations established in this subsection, the level of inventory to 
be sold or transferred to end users.
  ``(4) Within 5 years after the date of enactment of this subsection 
and biennially thereafter the Secretary shall report to the Congress on 
the implementation of this subsection. The report shall include a 
discussion of all sales or transfers made by the United States 
Government, the impact of such sales or transfers on the domestic 
uranium industry, the spot market uranium price, and the national 
security interests of the United States, and any steps taken to 
remediate any adverse impacts of such sales or transfers.
  ``(5) For purposes of this subsection, the term `United States 
Government' does not include the Tennessee Valley Authority.''.

SEC. 442. DECOMMISSIONING PILOT PROGRAM.

  (a) Pilot Program.--The Secretary shall establish a decommissioning 
pilot program to decommission and decontaminate the sodium-cooled fast 
breeder experimental test-site reactor located in northwest Arkansas in 
accordance with the decommissioning activities contained in the August 
31, 1998 Department of Energy report on the reactor.
  (b) Authorization of Appropriations.--There is authorized to be 
appropriated to carry out this section $16,000,000.

                       TITLE V--RENEWABLE ENERGY

                     Subtitle A--General Provisions

SEC. 501. ASSESSMENT OF RENEWABLE ENERGY RESOURCES.

  (a) Resource Assessment.--Not later than 6 months after the date of 
enactment of this title, and each year thereafter, the Secretary of 
Energy shall review the available assessments of renewable energy 
resources within the United States, including solar, wind, biomass, 
ocean (tidal and thermal), geothermal, and hydroelectric energy 
resources, and undertake new assessments as necessary, taking into 
account changes in market conditions, available technologies, and other 
relevant factors.
  (b) Contents of Reports.--Not later than 1 year after the date of 
enactment of this title, and each year thereafter, the Secretary shall 
publish a report based on the assessment under subsection (a). The 
report shall contain--
          (1) a detailed inventory describing the available amount and 
        characteristics of the renewable energy resources; and
          (2) such other information as the Secretary believes would be 
        useful in developing such renewable energy resources, including 
        descriptions of surrounding terrain, population and load 
        centers, nearby energy infrastructure, location of energy and 
        water resources, and available estimates of the costs needed to 
        develop each resource, together with an identification of any 
        barriers to providing adequate transmission for remote sources 
        of renewable energy resources to current and emerging markets, 
        recommendations for removing or addressing such barriers, and 
        ways to provide access to the grid that do not unfairly 
        disadvantage renewable or other energy producers.
  (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy $10,000,000 for each of fiscal years 2004 through 2008.

SEC. 502. RENEWABLE ENERGY PRODUCTION INCENTIVE.

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

SEC. 503. RENEWABLE ENERGY ON FEDERAL LANDS.

  (a) Report.--Within 24 months after the date of enactment of this 
Act, the Secretary of the Interior, in cooperation with the Secretary 
of Agriculture, shall develop and report to the Congress 
recommendations on opportunities to develop renewable energy on public 
lands under the jurisdiction of the Secretary of the Interior and 
National Forest System lands under the jurisdiction of the Secretary of 
Agriculture. The report shall include--
          (1) 5-year plans developed by the Secretary of the Interior 
        and the Secretary of Agriculture, respectively, for encouraging 
        the development of renewable energy consistent with applicable 
        law and management plans; and
          (2) an analysis of--
                  (A) the use of rights-of-way, leases, or other 
                methods to develop renewable energy on such lands;
                  (B) the anticipated benefits of grants, loans, tax 
                credits, or other provisions to promote renewable 
                energy development on such lands; and
                  (C) any issues that the Secretary of the Interior or 
                the Secretary of Agriculture have encountered in 
                managing renewable energy projects on such lands, or 
                believe are likely to arise in relation to the 
                development of renewable energy on such lands;
          (3) a list, developed in consultation with the Secretary of 
        Energy and the Secretary of Defense, of lands under the 
        jurisdiction of the Department of Energy or Defense that would 
        be suitable for development for renewable energy, and any 
        recommended statutory and regulatory mechanisms for such 
        development; and
          (4) any recommendations pertaining to the issues addressed in 
        the report.
  (b) National Academy of Sciences Study.--
          (1) Not later than 90 days after the date of the enactment of 
        this section, the Secretary of the Interior shall contract with 
        the National Academy of Sciences to--
                  (A) study the potential for the development of wind, 
                solar, and ocean (tidal and thermal) energy on the 
                Outer Continental Shelf;
                  (B) assess existing Federal authorities for the 
                development of such resources; and
                  (C) recommend statutory and regulatory mechanisms for 
                such development.
          (2) The results of the study shall be transmitted to the 
        Congress within 24 months after the date of the enactment of 
        this section.

SEC. 504. FEDERAL PURCHASE REQUIREMENT.

  (a) Requirement.--The President, acting through the Secretary of 
Energy, shall seek to ensure that, to the extent economically feasible 
and technically practicable, of the total amount of electric energy the 
Federal Government consumes during any fiscal year, the following 
amounts shall be renewable energy--
          (1) not less than 3 percent in fiscal years 2005 through 
        2007,
          (2) not less than 5 percent in fiscal years 2008 through 
        2010, and
          (3) not less than 7.5 percent in fiscal year 2011 and each 
        fiscal year thereafter.
  (b) Definition.--For purposes of this section--
          (1) the term ``biomass'' means any solid, nonhazardous, 
        cellulosic material that is derived from--
                  (A) any of the following forest-related resources: 
                mill residues, precommercial thinnings, slash, and 
                brush, or nonmerchantable material;
                  (B) solid wood waste materials, including waste 
                pallets, crates, dunnage, manufacturing and 
                construction wood wastes (other than pressure-treated, 
                chemically-treated, or painted wood wastes), and 
                landscape or right-of-way tree trimmings, but not 
                including municipal solid waste (garbage), gas derived 
                from the biodegradation of solid waste, or paper that 
                is commonly recycled; or
                  (C) agriculture wastes, including orchard tree crops, 
                vineyard, grain, legumes, sugar, and other crop by-
                products or residues, and livestock waste nutrients; or
                  (D) a plant that is grown exclusively as a fuel for 
                the production of electricity.
          (2) the term ``renewable energy'' means electric energy 
        generated from solar, wind, biomass, geothermal, municipal 
        solid waste, or new hydroelectric generation capacity achieved 
        from increased efficiency or additions of new capacity at an 
        existing hydroelectric project.
  (c) Calculation.--For purposes of determining compliance with the 
requirement of this section, the amount of renewable energy shall be 
doubled if--
          (1) the renewable energy is produced and used on-site at a 
        Federal facility;
          (2) the renewable energy is produced on Federal lands and 
        used at a Federal facility; or
          (3) the renewable energy is produced on Indian land as 
        defined in title XXVI of the Energy Policy Act of 1992 (25 
        U.S.C. 3501 et seq.) and used at a Federal facility.
  (d) Report.--Not later than April 15, 2005, and every 2 years 
thereafter, the Secretary of Energy shall provide a report to the 
Congress on the progress of the Federal Government in meeting the goals 
established by this section.

SEC. 505. INSULAR AREA RENEWABLE AND ENERGY EFFICIENCY PLANS.

  The Secretary of Energy shall update the energy surveys, estimates, 
and assessments for the insular areas of Puerto Rico, the Virgin 
Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana 
Islands, the Republic of the Marshall Islands, the Federated States of 
Micronesia, and the Republic of Palau undertaken pursuant to section 
604 of Public Law 96-597 (48 U.S.C. 1492) and revise the comprehensive 
energy plan for the insular areas to reduce reliance on energy imports 
and increase use of renewable energy resources and energy efficiency 
opportunities. The update and revision shall by undertaken in 
consultation with the Secretary of the Interior and the chief executive 
officer of each insular area and shall be completed and submitted to 
Congress and to the chief executive officer of each insular area by 
December 31, 2005.

                  Subtitle B--Hydroelectric Licensing

SEC. 511. ALTERNATIVE CONDITIONS AND FISHWAYS.

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

``SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

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

                     Subtitle C--Geothermal Energy

SEC. 521. COMPETITIVE LEASE SALE REQUIREMENTS.

  (a) In General.--Section 4 of the Geothermal Steam Act of 1970 (30 
U.S.C. 1003) is amended by striking the text and inserting the 
following:
  ``(a) Nominations.--The Secretary shall accept nominations at any 
time from companies and individuals of lands to be leased under this 
Act.
  ``(b) Competitive Lease Sale Required.--The Secretary shall hold a 
competitive lease sale at least once every 2 years for lands in a State 
in which there are nominations pending under subsection (a) where such 
lands are otherwise available for leasing.
  ``(c) Noncompetitive Leasing.--The Secretary shall make available for 
a period of 2 years for noncompetitive leasing any tract for which a 
competitive lease sale is held, but for which the Secretary does not 
receive any bids in the competitive lease sale.''.
  (b) Pending Lease Applications.--It shall be a priority for the 
Secretary of the Interior and, with respect to National Forest lands, 
the Secretary of Agriculture, to ensure timely completion of 
administrative actions necessary to conduct competitive lease sales for 
lands with pending applications for geothermal leasing as of the date 
of enactment of this section where such lands are otherwise available 
for leasing.

SEC. 522. GEOTHERMAL LEASING AND PERMITTING ON FEDERAL LANDS.

  (a) In General.--Not later than 180 days after the date of the 
enactment of this section, the Secretary of the Interior and the 
Secretary of Agriculture shall enter into and submit to the Congress a 
memorandum of understanding in accordance with this section regarding 
leasing and permitting for geothermal development of public lands and 
National Forest System lands under their respective jurisdictions.
  (b) Lease and Permit Applications.--The memorandum of understanding 
shall--
          (1) identify known geothermal resources areas on lands 
        included in the National Forest System and, when necessary, 
        require review of management plans to consider leasing under 
        the Geothermal Steam Act of 1970 (30 U.S.C. 1001 et seq.) as a 
        land use; and
          (2) establish an administrative procedure for processing 
        geothermal lease applications, including lines of authority, 
        steps in application processing, and time limits for 
        application processing.
  (c) Data Retrieval System.--The memorandum of understanding shall 
establish a joint data retrieval system that is capable of tracking 
lease and permit applications and providing to the applicant 
information as to their status within the Departments of the Interior 
and Agriculture, including an estimate of the time required for 
administrative action.

SEC. 523. LEASING AND PERMITTING ON FEDERAL LANDS WITHDRAWN FOR 
                    MILITARY PURPOSES.

  Not later than 1 year after the date of the enactment of this Act, 
the Secretary of the Interior and the Secretary of Defense, in 
consultation with interested states, counties, representatives of the 
geothermal industry, and interested members of the public, shall submit 
to the Congress a joint report concerning leasing and permitting 
activities for geothermal energy on Federal lands withdrawn for 
military purposes. Such report shall--
          (1) describe any differences, including differences in 
        royalty structure and revenue sharing with states and counties, 
        between--
                  (A) the implementation of the Geothermal Steam Act of 
                1970 (30 U.S.C. 1001 et seq.) and other applicable 
                Federal law by the Secretary of the Interior; and
                  (B) the administration of geothermal leasing under 
                section 2689 of title 10, United States Code, by the 
                Secretary of Defense;
          (2) identify procedures for interagency coordination to 
        ensure efficient processing and administration of leases or 
        contracts for geothermal energy on federal lands withdrawn for 
        military purposes, consistent with the defense purposes of such 
        withdrawals; and
          (3) provide recommendations for legislative or administrative 
        actions that could facilitate program administration, including 
        a common royalty structure.

SEC. 524. REINSTATEMENT OF LEASES TERMINATED FOR FAILURE TO PAY RENT.

  Section 5(c) of the Geothermal Steam Act of 1970 (30 U.S.C. 1004(c)), 
is amended in the last sentence by inserting ``or was inadvertent,'' 
after ``reasonable diligence,''.

SEC. 525. ROYALTY REDUCTION AND RELIEF.

  (a) Rulemaking.--Within one year after the date of enactment of this 
Act, the Secretary shall promulgate a final regulation providing a 
methodology for determining the amount or value of the steam for 
purposes of calculating the royalty due to be paid on such production 
pursuant to section 5 of the Geothermal Steam Act of 1970 (30 U.S.C. 
1004). The final regulation shall provide for a simplified methodology 
for calculating the royalty. In undertaking the rulemaking, the 
Secretary shall consider the use of a percent of revenue method and 
shall ensure that the final rule will result in the same level of 
royalty revenues as the regulation in effect on the date of enactment 
of this provision.
  (b) Low Temperature Direct Use.--Notwithstanding the provisions of 
section 5(a) of the Geothermal Steam Act of 1979 (30 U.S.C. 1004(a)), 
with respect to the direct use of low temperature geothermal resources 
for purposes other than the generation of electricity, the Secretary 
shall establish a schedule of fees and collect fees pursuant to such 
schedule in lieu of royalties based upon the total amount of geothermal 
resources used. The schedule of fees shall ensure that there is a fair 
return to the public for the use of the low temperature geothermal 
resource. With the consent of the lessee, the Secretary may modify the 
terms of a lease in existence on the date of enactment of this Act in 
order to reflect the provisions of this subsection.

                       Subtitle D--Biomass Energy

SEC. 531. DEFINITIONS.

  For the purposes of this subtitle:
          (1) The term ``eligible operation'' means a facility that is 
        located within the boundaries of an eligible community and uses 
        biomass from federal or Indian lands as a raw material to 
        produce electric energy, sensible heat, transportation fuels, 
        or substitutes for petroleum-based products.
          (2) The term ``biomass'' means pre-commercial thinnings of 
        trees and woody plants, or non-merchantable material, from 
        preventative treatments to reduce hazardous fuels, or reduce or 
        contain disease or insect infestations.
          (3) The term ``green ton'' means 2,000 pounds of biomass that 
        has not been mechanically or artificially dried.
          (4) The term ``Secretary'' means--
                  (A) with respect to lands within the National Forest 
                System, the Secretary of Agriculture; or
                  (B) with respect to Federal lands under the 
                jurisdiction of the Secretary of the Interior and 
                Indian lands, the Secretary of the Interior.
          (5) The term ``eligible community'' means any Indian 
        Reservation, or any county, town, township, municipality, or 
        other similar unit of local government that has a population of 
        not more than 50,000 individuals and is determined by the 
        Secretary to be located in an area near federal of Indian lands 
        which is at significant risk of catastrophic wildfire, disease, 
        or insect infestation or which suffers from disease or insect 
        infestation.
          (6) The term ``Indian tribe'' has the meaning given the term 
        in section 4(e) of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b(e)).
          (7) The term ``person'' includes--
                  (A) an individual;
                  (B) a community;
                  (C) an Indian tribe;
                  (D) a small business or a corporation that is 
                incorporated in the United States; or
                  (E) a nonprofit organization.

SEC. 532. BIOMASS COMMERCIAL UTILIZATION GRANT PROGRAM.

  (a) In General.--The Secretary may make grants to any person that 
owns or operates an eligible operation to offset the costs incurred to 
purchase biomass for use by such eligible operation with priority given 
to operations using biomass from the highest risk areas.
  (b) Limitation.--No grant provided under this subsection shall be 
paid at a rate that exceeds $20 per green ton of biomass delivered.
  (c) Records.--Each grant recipient shall keep such records as the 
Secretary may require to fully and correctly disclose the use of the 
grant funds and all transactions involved in the purchase of biomass. 
Upon notice by the Secretary, the grant recipient shall provide the 
Secretary reasonable access to examine the inventory and records of any 
eligible operation receiving grant funds.
  (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated $12,500,000 each to 
the Secretary of the Interior and the Secretary of Agriculture for each 
fiscal year from 2004 through 2008, to remain available until expended.

SEC. 533. IMPROVED BIOMASS UTILIZATION GRANT PROGRAM.

  (a) In General.--The Secretary may make grants to persons in eligible 
communities to offset the costs of developing or researching proposals 
to improve the use of biomass or add value to biomass utilization.
  (b) Selection.--Grant recipients shall be selected based on the 
potential for the proposal to--
          (1) develop affordable thermal or electric energy resources 
        for the benefit of an eligible community;
          (2) provide opportunities for the creation or expansion of 
        small businesses within an eligible community;
          (3) create new job opportunities within an eligible 
        community, and
          (4) reduce the hazardous fuels from the highest risk areas.
  (c) Limitation.--No grant awarded under this subsection shall exceed 
$500,000.
  (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated $12,500,000 each to 
the Secretary of the Interior and the Secretary of Agriculture for each 
fiscal year from 2004 through 2008, to remain available until expended.

SEC. 534. REPORT.

  Not later than 3 years after the date of enactment of this subtitle, 
the Secretary of the Interior and the Secretary of Agriculture shall 
jointly submit to the Congress a report that describes the interim 
results of the programs authorized under this subtitle.

                      TITLE VI--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

SEC. 601. ENERGY MANAGEMENT REQUIREMENTS.

  (a) Energy Reduction Goals.--Section 543(a)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(a)(1)) is amended by striking 
``its Federal buildings so that'' and all that follows through the end 
and inserting ``the Federal buildings of the agency (including each 
industrial or laboratory facility) so that the energy consumption per 
gross square foot of the Federal buildings of the agency in fiscal 
years 2004 through 2013 is reduced, as compared with the energy 
consumption per gross square foot of the Federal buildings of the 
agency in fiscal year 2000, by the percentage specified in the 
following table:

``Fiscal Year                                      Percentage reduction
        2004...................................................      2 
        2005...................................................      4 
        2006...................................................      6 
        2007...................................................      8 
        2008...................................................     10 
        2009...................................................     12 
        2010...................................................     14 
        2011...................................................     16 
        2012...................................................     18 
        2013...................................................  20.''.
  (b) Effective Date.--The energy reduction goals and baseline 
established in paragraph (1) of section 543(a) of the National Energy 
Conservation Policy Act, as amended by subsection (a) of this section, 
supersede all previous goals and baselines under such paragraph, and 
related reporting requirements.
  (c) Review of Energy Performance Requirements.--Section 543(a) of the 
National Energy Conservation Policy Act (42 U.S.C. 8253(a)) is further 
amended by adding at the end the following:
          ``(3) Not later than December 31, 2011, the Secretary shall 
        review the results of the implementation of the energy 
        performance requirement established under paragraph (1) and 
        submit to Congress recommendations concerning energy 
        performance requirements for fiscal years 2014 through 2022.''.
  (d) Exclusions.--Section 543(c)(1) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(1)) is amended by striking 
``An agency may exclude'' and all that follows through the end and 
inserting--
          ``(A) An agency may exclude, from the energy performance 
        requirement for a fiscal year established under subsection (a) 
        and the energy management requirement established under 
        subsection (b), any Federal building or collection of Federal 
        buildings, if the head of the agency finds that--
                  ``(i) compliance with those requirements would be 
                impracticable;
                  ``(ii) the agency has completed and submitted all 
                federally required energy management reports;
                  ``(iii) the agency has achieved compliance with the 
                energy efficiency requirements of this Act, the Energy 
                Policy Act of 1992, Executive Orders, and other Federal 
                law; and
                  ``(iv) the agency has implemented all practicable, 
                life-cycle cost-effective projects with respect to the 
                Federal building or collection of Federal buildings to 
                be excluded.
          ``(B) A finding of impracticability under subparagraph (A)(i) 
        shall be based on--
                  ``(i) the energy intensiveness of activities carried 
                out in the Federal building or collection of Federal 
                buildings; or
                  ``(ii) the fact that the Federal building or 
                collection of Federal buildings is used in the 
                performance of a national security function.''.
  (e) Review by Secretary.--Section 543(c)(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8253(c)(2)) is amended--
          (1) by striking ``impracticability standards'' and inserting 
        ``standards for exclusion''; and
          (2) by striking ``a finding of impracticability'' and 
        inserting ``the exclusion''.
  (f) Criteria.--Section 543(c) of the National Energy Conservation 
Policy Act (42 U.S.C. 8253(c)) is further amended by adding at the end 
the following:
          ``(3) Not later than 180 days after the date of enactment of 
        this paragraph, the Secretary shall issue guidelines that 
        establish criteria for exclusions under paragraph (1).''.
  (g) Retention of Energy Savings.--Section 546 of the National Energy 
Conservation Policy Act (42 U.S.C. 8256) is amended by adding at the 
end the following new subsection:
  ``(e) Retention of Energy Savings.--An agency may retain any funds 
appropriated to that agency for energy expenditures, at buildings 
subject to the requirements of section 543(a) and (b), that are not 
made because of energy savings. Except as otherwise provided by law, 
such funds may be used only for energy efficiency or unconventional and 
renewable energy resources projects.''.
  (h) Reports.--Section 548(b) of the National Energy Conservation 
Policy Act (42 U.S.C. 8258(b)) is amended--
          (1) in the subsection heading, by inserting ``The President 
        and'' before ``Congress''; and
          (2) by inserting ``President and'' before ``Congress''.
  (i) Conforming Amendment.--Section 550(d) of the National Energy 
Conservation Policy Act (42 U.S.C. 8258b(d)) is amended in the second 
sentence by striking ``the 20 percent reduction goal established under 
section 543(a) of the National Energy Conservation Policy Act (42 
U.S.C. 8253(a)).'' and inserting ``each of the energy reduction goals 
established under section 543(a).''.

SEC. 602. ENERGY USE MEASUREMENT AND ACCOUNTABILITY.

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

SEC. 603. FEDERAL BUILDING PERFORMANCE STANDARDS.

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

SEC. 604. ENERGY SAVINGS PERFORMANCE CONTRACTS.

  (a) Permanent Extension.--Section 801(c) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(c)) is repealed.
  (b) Replacement Facilities.--Section 801(a) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287(a)) is amended by adding at the 
end the following new paragraph:
          ``(3)(A) In the case of an energy savings contract or energy 
        savings performance contract providing for energy savings 
        through the construction and operation of one or more buildings 
        or facilities to replace one or more existing buildings or 
        facilities, benefits ancillary to the purpose of such contract 
        under paragraph (1) may include savings resulting from reduced 
        life-cycle costs of operation and maintenance at such 
        replacement buildings or facilities when compared with costs of 
        operation and maintenance at the buildings or facilities being 
        replaced, established through a methodology set forth in the 
        contract.
          ``(B) Notwithstanding paragraph (2)(B), aggregate annual 
        payments by an agency under an energy savings contract or 
        energy savings performance contract referred to in subparagraph 
        (A) may take into account (through the procedures developed 
        pursuant to this section) savings resulting from reduced costs 
        of operation and maintenance as described in that 
        subparagraph.''.
  (c) Energy Savings.--Section 804(2) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(2)) is amended to read as 
follows:
          ``(2) The term `energy savings' means--
                  ``(A) a reduction in the cost of energy or water, 
                from a base cost established through a methodology set 
                forth in the contract, used in an existing federally 
                owned building or buildings or other federally owned 
                facilities as a result of--
                          ``(i) the lease or purchase of operating 
                        equipment, improvements, altered operation and 
                        maintenance, or technical services;
                          ``(ii) the increased efficient use of 
                        existing energy sources by co-generation or 
                        heat recovery, excluding any co-generation 
                        process for other than a federally owned 
                        building or buildings or other federally owned 
                        facilities; or
                          ``(iii) the increased efficient use of 
                        existing water sources; or
                  ``(B) in the case of a replacement building or 
                facility described in section 801(a)(3), a reduction in 
                the cost of energy, from a base cost established 
                through a methodology set forth in the contract, that 
                would otherwise be utilized in one or more existing 
                federally owned buildings or other federally owned 
                facilities by reason of the construction and operation 
                of the replacement building or facility.''.
  (d) Energy Savings Contract.--Section 804(3) of the National Energy 
Conservation Policy Act (42 U.S.C. 8287c(3)) is amended to read as 
follows:
          ``(3) The terms `energy savings contract' and `energy savings 
        performance contract' mean a contract which provides for--
                  ``(A) the performance of services for the design, 
                acquisition, installation, testing, and, where 
                appropriate, operation, maintenance and repair, of an 
                identified energy or water conservation measure or 
                series of measures at one or more locations; or
                  ``(B) energy savings through the construction and 
                operation of one or more buildings or facilities to 
                replace one or more existing buildings or facilities. 
                Such contracts shall, with respect to an agency 
                facility that is a public building as such term is 
                defined in section 13(1) of the Public Buildings Act of 
                1959 (40 U.S.C. 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).''.
  (e) Energy or Water Conservation Measure.--Section 804(4) of the 
National Energy Conservation Policy Act (42 U.S.C. 8287c(4)) is amended 
to read as follows:
          ``(4) The term `energy or water conservation measure' means--
                  ``(A) an energy conservation measure, as defined in 
                section 551(4) (42 U.S.C. 8259(4)); or
                  ``(B) a water conservation measure that improves 
                water efficiency, is life-cycle cost-effective, and 
                involves water conservation, water recycling or reuse, 
                more efficient treatment of wastewater or stormwater, 
                improvements in operation or maintenance efficiencies, 
                retrofit activities, or other related activities, not 
                at a Federal hydroelectric facility.''.
  (f) Pilot Program for Non-Building Applications.--
          (1) The Secretary of Defense, and the heads of other 
        interested Federal agencies, are authorized to enter into up to 
        10 energy savings performance contracts under Title VIII of the 
        National Energy Conservation Policy Act (42 U.S.C. 8287 et 
        seq.) for the purpose of achieving energy or water savings, 
        secondary savings, and benefits incidental to those purposes, 
        in non-building applications, provided that the aggregate 
        payments to be made by the Federal government under such 
        contracts shall not exceed $100,000,000.
          (2) The Secretary of Energy, in consultation with the 
        Secretary of Defense and the heads of other interested Federal 
        agencies, shall select projects that demonstrate the 
        applicability and benefits of energy savings performance 
        contracting to a range of non-building applications.
          (3) For the purposes of this subsection:
                  (A) The term ``non-building application'' means--
                          (i) any class of vehicles, devices, or 
                        equipment that is transportable under its own 
                        power by land, sea, or air that consumes energy 
                        from any fuel source for the purpose of such 
                        transportability, or to maintain a controlled 
                        environment within such vehicle, device, or 
                        equipment; or
                          (ii) any Federally owned equipment used to 
                        generate electricity or transport water.
                  (B) The term ``secondary savings'', means additional 
                energy or cost savings that are a direct consequence of 
                the energy or water savings that result from the 
                financing and implementation of the energy savings 
                performance contract, including, but not limited to, 
                energy or cost savings that result from a reduction in 
                the need for fuel delivery and logistical support, or 
                the increased efficiency in the production of 
                electricity.
          (4) Not later than 3 years after the date of enactment of 
        this section, the Secretary of Energy shall report to the 
        Congress on the progress and results of the projects funded 
        pursuant to this section. Such report shall include a 
        description of projects undertaken; the energy, water and cost 
        savings, secondary savings and other benefits that resulted 
        from such projects; and recommendations on whether the pilot 
        program should be extended, expanded, or authorized permanently 
        as a part of the program authorized under Title VIII of the 
        National Energy Conservation Policy Act (42 U.S.C. 8287 et 
        seq.).
          (5) Section 546(c)(3) of the National Energy Conservation 
        Policy Act (42 U.S.C. 8256) is amended by striking the word 
        ``facilities'', and inserting the words ``facilities, equipment 
        and vehicles'', in lieu thereof.
  (g) Review.--Within 180 days after the date of the enactment of this 
section, the Secretary of Energy shall complete a review of the Energy 
Savings Performance Contract program to identify statutory, regulatory, 
and administrative obstacles that prevent Federal agencies from fully 
utilizing the program. In addition, this review shall identify all 
areas for increasing program flexibility and effectiveness, including 
audit and measurement verification requirements, accounting for energy 
use in determining savings, contracting requirements, including the 
identification of additional qualified contractors, and energy 
efficiency services covered. The Secretary shall report these findings 
to the Committee on Energy and Commerce of the House of Representatives 
and the Committee on Energy and Natural Resources of the Senate, and 
shall implement identified administrative and regulatory changes to 
increase program flexibility and effectiveness to the extent that such 
changes are consistent with statutory authority.

SEC. 605. PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

``SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

``Sec. 552. Federal procurement of energy efficient products.''.

SEC. 606. CONGRESSIONAL BUILDING EFFICIENCY.

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

``SEC. 553. ENERGY AND WATER SAVINGS MEASURES IN CONGRESSIONAL 
                    BUILDING.

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

``Sec. 553. Energy and water savings measures in congressional 
buildings.''.
  (c) Repeal.--Section 310 of the Legislative Branch Appropriations 
Act, 1999 (40 U.S.C. 166i), is repealed.
  (d) Energy Infrastructure.--The Architect of the Capitol, building on 
the Master Plan Study completed in July 2000, shall commission a study 
to evaluate the energy infrastructure of the Capital Complex to 
determine how the infrastructure could be augmented to become more 
energy efficient, using unconventional and renewable energy resources, 
in a way that would enable the Complex to have reliable utility service 
in the event of power fluctuations, shortages, or outages.
  (e) Authorization.--There are authorized to be appropriated to the 
Architect of the Capitol to carry out subsection (d), not more than 
$2,000,000 for fiscal year 2004.

SEC. 607. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

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

``SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

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

``Sec. 6005. Increased use of recovered mineral component in federally 
funded projects involving procurement of cement or concrete.''.

SEC. 608. UTILITY ENERGY SERVICE CONTRACTS.

  Section 546(c)(1) of the National Energy Conservation Policy Act (42 
U.S.C. 8256(c)) is amended to read as follows:
          ``(1) Agencies are authorized and encouraged to participate 
        in programs, including utility energy services contracts, 
        conducted by gas, water and electric utilities and generally 
        available to customers of such utilities, for the purposes of 
        increased energy efficiency, water conservation or the 
        management of electricity demand.''.

SEC. 609. STUDY OF ENERGY EFFICIENCY STANDARDS.

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

                  Subtitle B--State and Local Programs

SEC. 611. LOW INCOME COMMUNITY ENERGY EFFICIENCY PILOT PROGRAM.

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

SEC. 612. ENERGY EFFICIENT PUBLIC BUILDINGS.

  (a) Grants.--The Secretary of Energy may make grants to the State 
agency responsible for developing State energy conservation plans under 
section 362 of the Energy Policy and Conservation Act (42 U.S.C. 6322), 
or, if no such agency exists, a State agency designated by the Governor 
of the State, to assist units of local government in the State in 
improving the energy efficiency of public buildings and facilities--
          (1) through construction of new energy efficient public 
        buildings that use at least 30 percent less energy than a 
        comparable public building constructed in compliance with 
        standards prescribed in chapter 8 of the 2000 International 
        Energy Conservation Code, or a similar State code intended to 
        achieve substantially equivalent efficiency levels; or
          (2) through renovation of existing public buildings to 
        achieve reductions in energy use of at least 30 percent as 
        compared to the baseline energy use in such buildings prior to 
        renovation, assuming a 3-year, weather-normalized average for 
        calculating such baseline.
  (b) Administration.--State energy offices receiving grants under this 
section shall--
          (1) maintain such records and evidence of compliance as the 
        Secretary may require; and
          (2) develop and distribute information and materials and 
        conduct programs to provide technical services and assistance 
        to encourage planning, financing, and design of energy 
        efficient public buildings by units of local government.
  (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy such sums as may be necessary for each of fiscal years 2003 
through 2012. Not more than 30 percent of appropriated funds shall be 
used for administration.

SEC. 613. ENERGY EFFICIENT APPLIANCE REBATE PROGRAMS.

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

                     Subtitle C--Consumer Products

SEC. 621. ENERGY CONSERVATION STANDARDS FOR ADDITIONAL PRODUCTS.

  (a) Definitions.--Section 321 of the Energy Policy and Conservation 
Act (42 U.S.C. 6291) is amended--
          (1) in subparagraph (30)(S), by striking the period and 
        adding at the end the following:
                ``but does not include any lamps specifically designed 
                to be used for special purpose applications, and also 
                does not include any lamp not described in subparagraph 
                (D) that is excluded by the Secretary, by rule.''; and
          (2) by adding at the end the following:
          ``(32) The term `battery charger' means a device that charges 
        batteries for consumer products.
          ``(33) The term `commercial refrigerator, freezer and 
        refrigerator-freezer' means a refrigerator, freezer or 
        refrigerator-freezer that--
                  ``(A) is not a consumer product regulated under this 
                Act; and
                  ``(B) incorporates most components involved in the 
                vapor-compression cycle and the refrigerated 
                compartment in a single package.
          ``(34) The term `external power supply' means an external 
        power supply circuit that is used to convert household electric 
        current into either DC current or lower-voltage AC current to 
        operate a consumer product.
          ``(35) The term `illuminated exit sign' means a sign that--
                  ``(A) is designed to be permanently fixed in place to 
                identify an exit; and
                  ``(B) consists of an electrically powered integral 
                light source that illuminates the legend `EXIT' and any 
                directional indicators and provides contrast between 
                the legend, any directional indicators, and the 
                background.
          ``(36)(A) Except as provided in subparagraph (B), the term 
        `low-voltage dry-type transformer' means a transformer that--
                  ``(i) has an input voltage of 600 volts or less;
                  ``(ii) is air-cooled;
                  ``(iii) does not use oil as a coolant; and
                  ``(iv) is rated for operation at a frequency of 60 
                Hertz.
          ``(B) The term `low-voltage dry-type transformer' does not 
        include--
                  ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 20 percent 
                more than the lowest voltage tap;
                  ``(ii) transformers, such as those commonly known as 
                drive transformers, rectifier transformers, auto-
                transformers, Uninterruptible Power System 
                transformers, impedance transformers, harmonic 
                transformers, regulating transformers, sealed and 
                nonventilating transformers, machine tool transformers, 
                welding transformers, grounding transformers, or 
                testing transformers, that are designed to be used in a 
                special purpose application and are unlikely to be used 
                in general purpose applications; or
                  ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application and 
                the application of standards to the transformer would 
                not result in significant energy savings.
          ``(37)(A) Except as provided in subsection (B), the term 
        `distribution transformer' means a transformer that --
                  ``(i) has an input voltage of 34.5 kilovolts or less;
                  ``(ii) has an output voltage of 600 volts or less; 
                and
                  ``(iii) is rated for operation at a frequency of 60 
                Hertz.
          ``(B) The term `distribution transformer' does not include --
                  ``(i) transformers with multiple voltage taps, with 
                the highest voltage tap equaling at least 15 percent 
                more than the lowest voltage tap;
                  ``(ii) transformers, such as those commonly known as 
                drive transformers, rectifier transformers, 
                autotransformers, Uninterruptible Power System 
                transformers, impedance transformers, harmonic 
                transformers, regulating transformers, sealed and 
                nonventilating transformers, machine tool transformers, 
                welding transformers, grounding transformers, or 
                testing transformers, that are designed to be used in a 
                special purpose application, and are unlikely to be 
                used in general purpose applications; or
                  ``(iii) any transformer not listed in clause (ii) 
                that is excluded by the Secretary by rule because the 
                transformer is designed for a special application, is 
                unlikely to be used in general purpose applications, 
                and the application of standards to the transformer 
                would not result in significant energy savings.
          ``(38) The term `standby mode' means the lowest amount of 
        electric power used by a household appliance when not 
        performing its active functions, as defined on an individual 
        product basis by the Secretary.
          ``(39) The term `torchiere' means a portable electric lamp 
        with a reflector bowl that directs light upward so as to give 
        indirect illumination.
          ``(40) The term `transformer' means a device consisting of 
        two or more coils of insulated wire that transfers alternating 
        current by electromagnetic induction from one coil to another 
        to change the original voltage or current value.
          ``(41) The term `unit heater' means a self-contained fan-type 
        heater designed to be installed within the heated space, except 
        that such term does not include a warm air furnace.
          ``(42) The term `traffic signal module' means a standard 8-
        inch (200mm) or 12-inch (300mm) traffic signal indication, 
        consisting of a light source, a lens, and all other parts 
        necessary for operation, that communicates movement messages to 
        drivers through red, amber, and green colors.''.
  (b) Test Procedures.--Section 323 of the Energy Policy and 
Conservation Act (42 U.S.C. 6293) is amended--
          (1) in subsection (b), by adding at the end the following:
          ``(9) Test procedures for illuminated exit signs shall be 
        based on the test method used under Version 2.0 of the Energy 
        Star program of the Environmental Protection Agency for 
        illuminated exit signs.
          ``(10) Test procedures for low voltage dry-type distribution 
        transformers shall be based on the `Standard Test Method for 
        Measuring the Energy Consumption of Distribution Transformers' 
        prescribed by the National Electrical Manufacturers Association 
        (NEMA TP 2-1998). The Secretary may review and revise this test 
        procedure.
          ``(11) Test procedures for traffic signal modules shall be 
        based on the test method used under the Energy Star program of 
        the Environmental Protection Agency for traffic signal modules, 
        as in effect on the date of enactment of this paragraph.
          ``(12) Test procedures for medium base compact fluorescent 
        lamps shall be based on the test methods used under the August 
        9, 2001 version of the Energy Star program of the Environmental 
        Protection Agency and Department of Energy for compact 
        fluorescent lamps. Covered products shall meet all test 
        requirements for regulated parameters in section 325(bb). 
        However, covered products may be marketed prior to completion 
        of lamp life and lumen maintenance at 40% of rated life testing 
        provided manufacturers document engineering predictions and 
        analysis that support expected attainment of lumen maintenance 
        at 40% rated life and lamp life time.''; and (2) by adding at 
        the end the following:
  ``(f) Additional Consumer and Commercial Products.--The Secretary 
shall within 24 months after the date of enactment of this subsection 
prescribe testing requirements for suspended ceiling fans, refrigerated 
bottled or canned beverage vending machines, and commercial 
refrigerators, freezers and refrigerator-freezers. Such testing 
requirements shall be based on existing test procedures used in 
industry to the extent practical and reasonable. In the case of 
suspended ceiling fans, such test procedures shall include efficiency 
at both maximum output and at an output no more than 50 percent of the 
maximum output.''.
  (c) New Standards.--Section 325 of the Energy Policy and Conservation 
Act (42 U.S.C. 6295) is amended by adding at the end the following:
  ``(u) Standby Mode Electric Energy Consumption.--
          ``(1) Initial rulemaking.--
                  ``(A) The Secretary shall, within 18 months after the 
                date of enactment of this subsection, prescribe by 
                notice and comment, definitions of standby mode and 
                test procedures for the standby mode power use of 
                battery chargers and external power supplies. In 
                establishing these test procedures, the Secretary shall 
                consider, among other factors, existing test procedures 
                used for measuring energy consumption in standby mode 
                and assess the current and projected future market for 
                battery chargers and external power supplies. This 
                assessment shall include estimates of the significance 
                of potential energy savings from technical improvements 
                to these products and suggested product classes for 
                standards. Prior to the end of this time period, the 
                Secretary shall hold a scoping workshop to discuss and 
                receive comments on plans for developing energy 
                conservation standards for standby mode energy use for 
                these products.
                  ``(B) The Secretary shall, within 3 years after the 
                date of enactment of this subsection, issue a final 
                rule that determines whether energy conservation 
                standards shall be promulgated for battery chargers and 
                external power supplies or classes thereof. For each 
                product class, any such standards shall be set at the 
                lowest level of standby energy use that--
                          ``(i) meets the criteria of subsections (o), 
                        (p), (q), (r), (s) and (t); and
                          ``(ii) will result in significant overall 
                        annual energy savings, considering both standby 
                        mode and other operating modes.
          ``(2) Designation of additional covered products.--
                  ``(A) Not later than 180 days after the date of 
                enactment of this subsection, the Secretary shall 
                publish for public comment and public hearing a notice 
                to determine whether any non-covered products should be 
                designated as covered products for the purpose of 
                instituting a rulemaking under this section to 
                determine whether an energy conservation standard 
                restricting standby mode energy consumption, should be 
                promulgated; except that any restriction on standby 
                mode energy consumption shall be limited to major 
                sources of such consumption.
                  ``(B) In making the determinations pursuant to 
                subparagraph (A) of whether to designate new covered 
                products and institute rulemakings, the Secretary 
                shall, among other relevant factors and in addition to 
                the criteria in section 322(b), consider--
                          ``(i) standby mode power consumption compared 
                        to overall product energy consumption; and
                          ``(ii) the priority and energy savings 
                        potential of standards which may be promulgated 
                        under this subsection compared to other 
                        required rulemakings under this section and the 
                        available resources of the Department to 
                        conduct such rulemakings.
                  ``(C) Not later than 1 year after the date of 
                enactment of this subsection, the Secretary shall issue 
                a determination of any new covered products for which 
                he intends to institute rulemakings on standby mode 
                pursuant to this section and he shall state the dates 
                by which he intends to initiate those rulemakings.
          ``(3) Review of standby energy use in covered products.--In 
        determining pursuant to section 323 whether test procedures and 
        energy conservation standards pursuant to this section should 
        be revised, the Secretary shall consider for covered products 
        which are major sources of standby mode energy consumption 
        whether to incorporate standby mode into such test procedures 
        and energy conservation standards, taking into account, among 
        other relevant factors, the criteria for non-covered products 
        in subparagraph (B) of paragraph (2) of this subsection.
          ``(4) Rulemaking.--
                  ``(A) Any rulemaking instituted under this subsection 
                or for covered products under this section which 
                restricts standby mode power consumption shall be 
                subject to the criteria and procedures for issuing 
                energy conservation standards set forth in this section 
                and the criteria set forth in subparagraph (B) of 
                paragraph (2) of this subsection.
                  ``(B) No standard can be proposed for new covered 
                products or covered products in a standby mode unless 
                the Secretary has promulgated applicable test 
                procedures for each product pursuant to section 323.
                  ``(C) The provisions of section 327 shall apply to 
                new covered products which are subject to the 
                rulemakings for standby mode after a final rule has 
                been issued.
          ``(5) Effective date.--Any standard promulgated under this 
        subsection shall be applicable to products manufactured or 
        imported 3 years after the date of promulgation.
          ``(6) Voluntary programs.--The Secretary and the 
        Administrator shall collaborate and develop programs, including 
        programs pursuant to section 324A (relating to Energy Star 
        Programs) and other voluntary industry agreements or codes of 
        conduct, which are designed to reduce standby mode energy use.
  ``(v) Suspended Ceiling Fans, Vending Machines, and Commercial 
Refrigerators, Freezers and Refrigerator-Freezers.--The Secretary shall 
within 36 months after the date on which testing requirements are 
prescribed by the Secretary pursuant to section 323(f), prescribe, by 
rule, energy conservation standards for suspended ceiling fans, 
refrigerated bottled or canned beverage vending machines, and 
commercial refrigerators, freezers and refrigerator-freezers. In 
establishing standards under this subsection, the Secretary shall use 
the criteria and procedures contained in subsections (l) and (m). Any 
standard prescribed under this subsection shall apply to products 
manufactured 3 years after the date of publication of a final rule 
establishing such standard.
  ``(w) Illuminated Exit Signs.--Illuminated exit signs manufactured on 
or after January 1, 2005 shall meet the Version 2.0 Energy Star Program 
performance requirements for illuminated exit signs prescribed by the 
Environmental Protection Agency.
  ``(x) Torchieres.--Torchieres manufactured on or after January 1, 
2005--
          ``(1) shall consume not more than 190 watts of power; and
          ``(2) shall not be capable of operating with lamps that total 
        more than 190 watts.
  ``(y) Distribution Transformers.--The efficiency of low voltage dry-
type transformers manufactured on or after January 1, 2005 shall be the 
Class I Efficiency Levels for distribution transformers specified in 
Table 4-2 of the `Guide for Determining Energy Efficiency for 
Distribution Transformers' published by the National Electrical 
Manufacturers Association (NEMA TP-1-2002).
  ``(z) Traffic Signal Modules.--Traffic signal modules manufactured on 
or after January 1, 2006 shall meet the performance requirements used 
under the Energy Star program of the Environmental Protection Agency 
for traffic signals, as in effect on the date of enactment of this 
paragraph, and shall be installed with compatible, electrically-
connected signal control interface devices and conflict monitoring 
systems.
  ``(aa) Unit Heaters.--Unit heaters manufactured on or after the date 
that is three years after the date of enactment of the Energy Policy 
Act of 2003 shall be equipped with an intermittent ignition device and 
shall have either power venting or an automatic flue damper.
  ``(bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and covered 
lamp (no reflector) medium base compact fluorescent lamps manufactured 
on or after January 1, 2005 shall meet the following requirements 
prescribed by the August 9, 2001 version of the Energy Star Program 
Requirements for CFLs, Energy Star Eligibility Criteria, Energy-
Efficiency Specification issued by the Environmental Protection Agency 
and Department of Energy: minimum initial efficacy; lumen maintenance 
at 1000 hours; lumen maintenance at 40% of rated life; rapid cycle 
stress test; and lamp life. The Secretary may, by rule, establish 
requirements for color quality (CRI); power factor; operating 
frequency; and maximum allowable start time based on the requirements 
prescribed by the August 9, 2001 version of the Energy Star Program 
Requirements for CFLs. The Secretary may, by rule, revise these 
requirements or establish other requirements considering energy 
savings, cost effectiveness, and consumer satisfaction.
  ``(cc) Effective Date.--The provisions of section 327 shall apply--
          ``(1) to products for which standards are to be set pursuant 
        to subsection (v) of this section on the date on which a final 
        rule is issued by the Department of Energy, except that any 
        state or local standards prescribed or enacted for any such 
        product prior to the date on which such final rule is issued 
        shall not be preempted until the standard set pursuant to 
        subsection (v) for that product takes effect; and
          ``(2) to products for which standards are set in subsections 
        (w) through (bb) of this section on the date of enactment of 
        the Energy Policy Act of 2003, except that any state or local 
        standards prescribed or enacted prior to the date of enactment 
        of the Energy Policy Act of 2003 shall not be preempted until 
        the standards set in subsections (w) through (bb) take 
        effect.''.

SEC. 622. ENERGY LABELING.

  (a) Rulemaking on Effectiveness of Consumer Product Labeling.--
Paragraph (2) of section 324(a) of the Energy Policy and Conservation 
Act (42 U.S.C. 6294(a)(2)) is amended by adding at the end the 
following:
                  ``(F) Not later than 3 months after the date of 
                enactment of this subparagraph, the Commission shall 
                initiate a rulemaking to consider the effectiveness of 
                the current consumer products labeling program in 
                assisting consumers in making purchasing decisions and 
                improving energy efficiency and to consider changes to 
                the labeling rules that would improve the effectiveness 
                of consumer product labels. Such rulemaking shall be 
                completed within 2 years after the date of enactment of 
                this subparagraph.''.
  (b) Rulemaking on Labeling for Additional Products.--Section 324(a) 
of the Energy Policy and Conservation Act (42 U.S.C. 6294(a)) is 
further amended by adding at the end the following:
          ``(5) The Secretary or the Commission, as appropriate, may 
        for covered products referred to in subsections (u) through 
        (aa) of section 325, prescribe, by rule, pursuant to this 
        section, labeling requirements for such products after a test 
        procedure has been set pursuant to section 323. In the case of 
        products to which TP-1 standards under section 325(y) apply, 
        labeling requirements shall be based on the `Standard for the 
        Labeling of Distribution Transformer Efficiency' prescribed by 
        the National Electrical Manufacturers Association (NEMA TP-3) 
        as in effect upon the date of enactment of this Act.''.

SEC. 623. ENERGY STAR PROGRAM.

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

``SEC. 324A. ENERGY STAR PROGRAM.

  ``There is established at the Department of Energy and the 
Environmental Protection Agency a voluntary program to identify and 
promote energy-efficient products and buildings in order to reduce 
energy consumption, improve energy security, and reduce pollution 
through voluntary labeling of or other forms of communication about 
products and buildings that meet the highest energy efficiency 
standards. Responsibilities under the program shall be divided between 
the Department of Energy and the Environmental Protection Agency 
consistent with the terms of agreements between the two agencies. The 
Administrator and the Secretary shall--
          ``(1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving energy 
        efficiency and to reduce pollution;
          ``(2) work to enhance public awareness of the Energy Star 
        label, including special outreach to small businesses;
          ``(3) preserve the integrity of the Energy Star label;
          ``(4) solicit the comments of interested parties in 
        establishing a new Energy Star product category, 
        specifications, or criteria, or in revising a product category, 
        and upon adoption of a new or revised product category, 
        specifications, or criteria, publish a notice of any changes in 
        product categories, specifications or criteria along with an 
        explanation of such changes, and, where appropriate, responses 
        to comments submitted by interested parties; and
          ``(5) unless waived or reduced by mutual agreement between 
        the Administrator, the Secretary, and the affected parties, 
        provide not less than 12 months lead time prior to 
        implementation of changes in product categories, 
        specifications, or criteria as may be adopted pursuant to this 
        section.''.
  (b) Table of Contents Amendment.--The table of contents of the Energy 
Policy and Conservation Act is amended by inserting after the item 
relating to section 324 the following new item:

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

SEC. 624. HVAC MAINTENANCE CONSUMER EDUCATION PROGRAM.

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

                       Subtitle D--Public Housing

SEC. 631. CAPACITY BUILDING FOR ENERGY-EFFICIENT, AFFORDABLE HOUSING.

  Section 4(b) of the HUD Demonstration Act of 1993 (42 U.S.C. 9816 
note) is amended--
          (1) in paragraph (1), by inserting before the semicolon at 
        the end the following: ``, including capabilities regarding the 
        provision of energy efficient, affordable housing and 
        residential energy conservation measures''; and
          (2) in paragraph (2), by inserting before the semicolon the 
        following: ``, including such activities relating to the 
        provision of energy efficient, affordable housing and 
        residential energy conservation measures that benefit low-
        income families''.

SEC. 632. INCREASE OF CDBG PUBLIC SERVICES CAP FOR ENERGY CONSERVATION 
                    AND EFFICIENCY ACTIVITIES.

  Section 105(a)(8) of the Housing and Community Development Act of 
1974 (42 U.S.C. 5305(a)(8)) is amended--
          (1) by inserting ``or efficiency'' after ``energy 
        conservation'';
          (2) by striking ``, and except that'' and inserting ``; 
        except that''; and
          (3) by inserting before the semicolon at the end the 
        following: ``; and except that each percentage limitation under 
        this paragraph on the amount of assistance provided under this 
        title that may be used for the provision of public services is 
        hereby increased by 10 percent, but such percentage increase 
        may be used only for the provision of public services 
        concerning energy conservation or efficiency''.

SEC. 633. FHA MORTGAGE INSURANCE INCENTIVES FOR ENERGY EFFICIENT 
                    HOUSING.

  (a) Single Family Housing Mortgage Insurance.--Section 203(b)(2) of 
the National Housing Act (12 U.S.C. 1709(b)(2)) is amended, in the 
first undesignated and indented paragraph beginning after subparagraph 
(B)(iii) (relating to solar energy systems)--
          (1) by inserting ``or paragraph (10)'' before the first 
        comma; and
          (2) by striking ``20 percent'' and inserting ``30 percent''.
  (b) Multifamily Housing Mortgage Insurance.--Section 207(c) of the 
National Housing Act (12 U.S.C. 1713(c)) is amended, in the second 
undesignated paragraph beginning after paragraph (3) (relating to solar 
energy systems and residential energy conservation measures), by 
striking ``20 percent'' and inserting ``30 percent''.
  (c) Cooperative Housing Mortgage Insurance.--Section 213(p) of the 
National Housing Act (12 U.S.C. 1715e(p)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.
  (d) Rehabilitation and Neighborhood Conservation Housing Mortgage 
Insurance.--Section 220(d)(3)(B)(iii) of the National Housing Act (12 
U.S.C. 1715k(d)(3)(B)(iii)) is amended by striking ``20 per centum'' 
and inserting ``30 percent''.
  (e) Low-Income Multifamily Housing Mortgage Insurance.--Section 
221(k) of the National Housing Act (12 U.S.C. 1715l(k)) is amended by 
striking ``20 per centum'' and inserting ``30 percent''.
  (f) Elderly Housing Mortgage Insurance--The proviso at the end of 
section 231(c)(2) of the National Housing Act (12 U.S.C. 1715v(c)(2)) 
is amended by striking ``20 per centum'' and inserting ``30 percent''.
  (g) Condominium Housing Mortgage Insurance.--Section 234(j) of the 
National Housing Act (12 U.S.C. 1715y(j)) is amended by striking ``20 
per centum'' and inserting ``30 percent''.

SEC. 634. PUBLIC HOUSING CAPITAL FUND.

  Section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g) 
is amended--
          (1) in subsection (d)(1)--
                  (A) in subparagraph (I), by striking ``and'' at the 
                end;
                  (B) in subparagraph (J), by striking the period at 
                the end and inserting a semicolon; and
                  (C) by adding at the end the following new 
                subparagraphs:
                  ``(K) improvement of energy and water-use efficiency 
                by installing fixtures and fittings that conform to the 
                American Society of Mechanical Engineers/American 
                National Standards Institute standards A112.19.2-1998 
                and A112.18.1-2000, or any revision thereto, applicable 
                at the time of installation, and by increasing energy 
                efficiency and water conservation by such other means 
                as the Secretary determines are appropriate; and
                  ``(L) integrated utility management and capital 
                planning to maximize energy conservation and efficiency 
                measures.''; and
          (2) in subsection (e)(2)(C)--
                  (A) by striking ``The'' and inserting the following:
                          ``(i) In general.--The''; and
                  (B) by adding at the end the following:
                          ``(ii) Third party contracts.--Contracts 
                        described in clause (i) may include contracts 
                        for equipment conversions to less costly 
                        utility sources, projects with resident-paid 
                        utilities, and adjustments to frozen base year 
                        consumption, including systems repaired to meet 
                        applicable building and safety codes and 
                        adjustments for occupancy rates increased by 
                        rehabilitation.
                          ``(iii) Term of contract.--The total term of 
                        a contract described in clause (i) shall not 
                        exceed 20 years to allow longer payback periods 
                        for retrofits, including windows, heating 
                        system replacements, wall insulation, site-
                        based generations, advanced energy savings 
                        technologies, including renewable energy 
                        generation, and other such retrofits.''.

SEC. 635. GRANTS FOR ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED 
                    HOUSING.

  Section 251(b)(1) of the National Energy Conservation Policy Act (42 
U.S.C. 8231(1)) is amended--
          (1) by striking ``financed with loans'' and inserting 
        ``assisted'';
          (2) by inserting after ``1959,'' the following: ``which are 
        eligible multifamily housing projects (as such term is defined 
        in section 512 of the Multi-family Assisted Housing Reform and 
        Affordability Act of 1997 (42 U.S.C. 1437f note)) and are 
        subject to mortgage restructuring and rental assistance 
        sufficiency plans under such Act,''; and
          (3) by inserting after the period at the end of the first 
        sentence the following new sentence: ``Such improvements may 
        also include the installation of energy and water conserving 
        fixtures and fittings that conform to the American Society of 
        Mechanical Engineers/American National Standards Institute 
        standards A112.19.2-1998 and A112.18.1-2000, or any revision 
        thereto, applicable at the time of installation.''.

SEC. 636. NORTH AMERICAN DEVELOPMENT BANK.

  Part 2 of subtitle D of title V of the North American Free Trade 
Agreement Implementation Act (22 U.S.C. 290m-290m-3) is amended by 
adding at the end the following:

``SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

  ``Consistent with the focus of the Bank's Charter on environmental 
infrastructure projects, the Board members representing the United 
States should use their voice and vote to encourage the Bank to finance 
projects related to clean and efficient energy, including energy 
conservation, that prevent, control, or reduce environmental pollutants 
or contaminants.''.

SEC. 637. ENERGY-EFFICIENT APPLIANCES.

  In purchasing appliances, a public housing agency shall purchase 
energy-efficient appliances that are Energy Star products or FEMP-
designated products, as such terms are defined in section 553 of the 
National Energy Policy and Conservation Act (as amended by this Act), 
unless the purchase of energy-efficient appliances is not cost-
effective to the agency.

SEC. 638. ENERGY EFFICIENCY STANDARDS.

  Section 109 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12709) is amended--
          (1) in subsection (a)--
                  (A) in paragraph (1)--
                          (i) by striking ``1 year after the date of 
                        the enactment of the Energy Policy Act of 
                        1992'' and inserting ``September 30, 2003'';
                          (ii) in subparagraph (A), by striking ``and'' 
                        at the end;
                          (iii) in subparagraph (B), by striking the 
                        period at the end and inserting ``; and''; and
                          (iv) by adding at the end the following:
                  ``(C) rehabilitation and new construction of public 
                and assisted housing funded by HOPE VI revitalization 
                grants under section 24 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437v), where such standards are 
                determined to be cost effective by the Secretary of 
                Housing and Urban Development.''; and
                  (B) in paragraph (2), by striking ``Council of 
                American'' and all that follows through ``90.1-1989')'' 
                and inserting ``2000 International Energy Conservation 
                Code'';
          (2) in subsection (b)--
                  (A) by striking ``1 year after the date of the 
                enactment of the Energy Policy Act of 1992'' and 
                inserting ``September 30, 2003''; and
                  (B) by striking ``CABO'' and all that follows through 
                ``1989'' and inserting ``the 2000 International Energy 
                Conservation Code''; and
          (3) in subsection (c)--
                  (A) in the heading, by striking ``MODEL ENERGY CODE'' 
                and inserting ``INTERNATIONAL ENERGY CONSERVATION 
                CODE''; and
                  (B) by striking ``CABO'' and all that follows through 
                ``1989'' and inserting ``the 2000 International Energy 
                Conservation Code''.

SEC. 639. ENERGY STRATEGY FOR HUD.

  The Secretary of Housing and Urban Development shall develop and 
implement an integrated strategy to reduce utility expenses through 
cost-effective energy conservation and efficiency measures and energy 
efficient design and construction of public and assisted housing. The 
energy strategy shall include the development of energy reduction goals 
and incentives for public housing agencies. The Secretary shall submit 
a report to Congress, not later than one year after the date of the 
enactment of this Act, on the energy strategy and the actions taken by 
the Department of Housing and Urban Development to monitor the energy 
usage of public housing agencies and shall submit an update every two 
years thereafter on progress in implementing the strategy.

                    TITLE VII--TRANSPORTATION FUELS

                 Subtitle A--Alternative Fuel Programs

SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED VEHICLES.

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

SEC. 702. FUEL USE CREDITS.

  (a) In General.--Section 312 of the Energy Policy Act of 1992 (42 
U.S.C. 13220) is amended to read as follows:

``SEC. 312. FUEL USE CREDITS.

  ``(a) Allocation.--
          ``(1) The Secretary shall allocate one credit under this 
        section to a fleet or covered person for each qualifying volume 
        of alternative fuel or biodiesel purchased for use in an on-
        road motor vehicle operated by the fleet that weighs more than 
        8,500 pounds gross vehicle weight rating.
          ``(2) No credits shall be allocated under this section for 
        purchase of an alternative fuel or biodiesel that is required 
        by Federal or State law.
          ``(3) A fleet or covered person seeking a credit under this 
        section shall provide written documentation to the Secretary 
        supporting the allocation of a credit to such fleet or covered 
        person under this section.
  ``(b) Use.--At the request of a fleet or covered person allocated a 
credit under subsection (a), the Secretary shall, for the year in which 
the purchase of a qualifying volume is made, treat that purchase as the 
acquisition of one alternative fueled vehicle the fleet or covered 
person is required to acquire under this title, title IV, or title V.
  ``(c) Treatment.--A credit provided to a fleet or covered person 
under this section shall be considered a credit under section 508.
  ``(d) Issuance of Rule.--Not later than 6 months after the date of 
enactment of this section, the Secretary shall issue a rule 
establishing procedures for the implementation of this section.
  ``(e) Definitions.--For the purposes of this section--
          ``(1) the term `biodiesel' means a diesel fuel substitute 
        produced from non-petroleum renewable resources that meets the 
        registration requirements for fuels and fuel additives 
        established by the Environmental Protection Agency under 
        section 211 of the Clean Air Act; and
          ``(2) the term `qualifying volume' means--
                  ``(A) in the case of biodiesel, when used as a 
                component of fuel containing at least 20 percent 
                biodiesel by volume, 450 gallons, or if the Secretary 
                determines by rule that the average annual alternative 
                fuel use in light duty vehicles by fleets and covered 
                persons exceeds 450 gallons or gallon equivalents, the 
                amount of such average annual alternative fuel use; or
                  ``(B) in the case of an alternative fuel, the amount 
                of such fuel determined by the Secretary to have an 
                equivalent energy content to the amount of biodiesel 
                defined as a qualifying volume pursuant to subparagraph 
                (A).''.
  (b) Table of Contents Amendment.--The table of contents of the Energy 
Policy Act of 1992 is amended by adding at the end of the items 
relating to title III the following new item:

``Sec. 312. Fuel use credits.''

SEC. 703. NEIGHBORHOOD ELECTRIC VEHICLES.

  Section 301 of the Energy Policy Act of 1992 (42 U.S.C. 13211) is 
amended--
          (1) in paragraph (3), by striking ``or a dual fueled 
        vehicle'' and inserting ``, a dual fueled vehicle, or a 
        neighborhood electric vehicle'';
          (2) by striking ``and'' at the end of paragraph (13);
          (3) by striking the period at the end of paragraph (14) and 
        inserting ``; and''; and
          (4) by adding at the end the following:
          ``(15) the term `neighborhood electric vehicle' means a motor 
        vehicle--
                  ``(A) which meets the definition of a low-speed 
                vehicle, as such term is defined in part 571 of title 
                49, Code of Federal Regulations;
                  ``(B) which meets the definition of a zero-emission 
                vehicle, as such term is defined in section 86.1702-99 
                of title 40, Code of Federal Regulations;
                  ``(C) which meets the requirements of Federal Motor 
                Vehicle Safety Standard No. 500; and
                  ``(D) which has a top speed of not greater than 25 
                miles per hour.''.

SEC. 704. CREDITS FOR MEDIUM AND HEAVY DUTY DEDICATED VEHICLES.

  Section 508 of the Energy Policy Act of 1992 (42 U.S.C. 13258) is 
amended by adding at the end the following:
  ``(e) Credit for Purchase of Medium and Heavy Duty Dedicated 
Vehicles.--
          ``(1) Definitions.--In this subsection:
                  ``(A) The term `medium duty dedicated vehicle' means 
                a dedicated vehicle that has a gross vehicle weight 
                rating of more than 8,500 pounds but not more than 
                14,000 pounds.
                  ``(B) The term `heavy duty dedicated vehicle' means a 
                dedicated vehicle that has a gross vehicle weight 
                rating of more than 14,000 pounds.
          ``(2) Credits for medium duty vehicles.--The Secretary shall 
        issue 2 full credits to a fleet or covered person under this 
        title, if the fleet or covered person acquires a medium duty 
        dedicated vehicle.
          ``(3) Credits for heavy duty vehicles.--The Secretary shall 
        issue 3 full credits to a fleet or covered person under this 
        title, if the fleet or covered person acquires a heavy duty 
        dedicated vehicle.
          ``(4) Use of credits.--At the request of a fleet or covered 
        person allocated a credit under this subsection, the Secretary 
        shall, for the year in which the acquisition of the dedicated 
        vehicle is made, treat that credit as the acquisition of 1 
        alternative fueled vehicle that the fleet or covered person is 
        required to acquire under this title.''.

SEC. 705. ALTERNATIVE FUEL INFRASTRUCTURE.

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

SEC. 706. INCREMENTAL COST ALLOCATION.

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

SEC. 707. REVIEW OF ALTERNATIVE FUEL PROGRAMS.

  (a) In General.--Not later than 1 year after the date of enactment of 
this section, the Secretary shall complete a study to determine the 
effect that titles III, IV and V of the Energy Policy Act of 1992 (42 
U.S.C. 13211 et seq.) have had on the development of alternative fueled 
vehicle technology, its availability in the market, and the cost of 
light duty motor vehicles that are alternative fueled vehicles.
  (b) Topics.--As part of such study, the Secretary shall specifically 
identify--
          (1) the number of alternative fueled vehicles acquired by 
        fleets or covered persons required to acquire alternative 
        fueled vehicles;
          (2) the amount, by type, of alternative fuel actually used in 
        alternative fueled vehicles acquired by fleets or covered 
        persons;
          (3) the amount of petroleum displaced by the use of 
        alternative fuels in alternative fueled vehicles acquired by 
        fleets or covered persons;
          (4) the cost of compliance with vehicle acquisition 
        requirements by fleets or covered persons; and
          (5) the existence of obstacles preventing compliance with 
        vehicle acquisition requirements and increased use of 
        alternative fuel in alternative fueled vehicles acquired by 
        fleets or covered persons.
  (c) Report.--Upon completion of the study, the Secretary shall submit 
to the Congress a report that describes the results of the study 
conducted under this section and includes any recommendations of the 
Secretary for legislative or administrative changes concerning the 
alternative fueled vehicle requirements under titles III, IV, and V of 
the Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.). Such study 
shall be updated on a regular basis as deemed necessary by the 
Secretary.

SEC. 708. HIGH OCCUPANCY VEHICLE EXCEPTION.

  Notwithstanding section 102(a)(1) of title 23, United States Code, a 
State may permit a vehicle with fewer than 2 occupants to operate in 
high occupancy vehicle lanes if such vehicle is a dedicated vehicle (as 
defined in section 301 of the Energy Policy Act of 1992 (42 U.S.C. 
13211)).

SEC. 709. ALTERNATIVE COMPLIANCE AND FLEXIBILITY.

  (a) Alternative Compliance.--Title V of the Energy Policy Act of 1992 
is amended by adding at the end the following:

``SEC. 515. ALTERNATIVE COMPLIANCE.

  ``(a) Application for Waiver.--Any covered person subject to the 
requirements of section 501 and any State subject to the requirement of 
section 507(o) may petition the Secretary for a waiver of the 
applicable requirements of section 501 or 507(o).
  ``(b) Grant of Waiver.--The Secretary may grant a waiver of the 
requirements of section 501 or 507(o) upon a showing that the fleet 
owned, operated, leased, or otherwise controlled by the State or 
covered person--
          ``(1) will achieve a reduction in its annual consumption of 
        petroleum fuels equal to the reduction in consumption of 
        petroleum that would result from compliance with section 501 or 
        507(o); and
          ``(2) is in compliance with all applicable vehicle emission 
        standards established by the Administrator under the Clean Air 
        Act.
  ``(c) Revocation of Waiver.--The Secretary shall revoke any waiver 
granted under this section if the State or covered person fails to 
comply with the requirements of subsection (b).''.
  (b) Credit for Hybrid Vehicles, Dedicated Alternative Fuel Vehicles, 
and Infrastructure.--Section 507 of the Energy Policy Act of 1992 (42 
U.S.C. 13258) (as amended by section 705) is amended by adding at the 
end the following:
  ``(r) Credits for New Qualified Hybrid Motor Vehicles.--
          ``(1) Definitions.--In this subsection:
                  ``(A) 2000 model year city fuel efficiency.--The term 
                `2000 model year city fuel efficiency', with respect to 
                a motor vehicle, means fuel efficiency determined in 
                accordance with the following tables:
                          (i) In the case of a passenger automobile:

  
``If vehicle inertia weight class        The 2000 model year city fuel 
        is:                                              efficiency is:
        1,500 or 1,750 lbs                                    43.7 mpg 
        2,000 lbs                                             38.3 mpg 
        2,250 lbs                                             34.1 mpg 
        2,500 lbs                                             30.7 mpg 
        2,750 lbs                                             27.9 mpg 
        3,000 lbs                                             25.6 mpg 
        3,500 lbs                                             22.0 mpg 
        4,000 lbs                                             19.3 mpg 
        4,500 lbs                                             17.2 mpg 
        5,000 lbs                                             15.5 mpg 
        5,500 lbs                                             14.1 mpg 
        6,000 lbs                                             12.9 mpg 
        6,500 lbs                                             11.9 mpg 
        7,000 to 8,500 lbs                                   11.1 mpg. 
                          ``(ii) In the case of a light truck:

``If vehicle inertia weight class        The 2000 model year city fuel 
        is:                                              efficiency is:
        1,500 or 1,750 lbs                                    37.6 mpg 
        2,000 lbs                                             33.7 mpg 
        2,250 lbs                                             30.6 mpg 
        2,500 lbs                                             28.0 mpg 
        2,750 lbs                                             25.9 mpg 
        3,000 lbs                                             24.1 mpg 
        3,500 lbs                                             21.3 mpg 
        4,000 lbs                                             19.0 mpg 
        4,500 lbs                                             17.3 mpg 
        5,000 lbs                                             15.8 mpg 
        5,500 lbs                                             14.6 mpg 
        6,000 lbs                                             13.6 mpg 
        6,500 lbs                                             12.8 mpg 
        7,000 to 8,500 lbs                                   12.0 mpg. 
                  ``(B) Administrator.--The term `Administrator' means 
                the Administrator of the Environmental Protection 
                Agency.
                  ``(C) Energy storage device.--The term `energy 
                storage device' means an onboard rechargeable energy 
                storage system or similar storage device.
                  ``(D) Fuel efficiency.--The term `fuel efficiency' 
                means the percentage increased fuel efficiency 
                specified in table 1 in paragraph (2)(C) over the 
                average 2000 model year city fuel efficiency of 
                vehicles in the same weight class.
                  ``(E) Maximum available power.--The term `maximum 
                available power', with respect to a new qualified 
                hybrid motor vehicle that is a passenger vehicle or 
                light truck, means the quotient obtained by dividing--
                          ``(i) the maximum power available from the 
                        electrical storage device of the new qualified 
                        hybrid motor vehicle, during a standard 10-
                        second pulse power or equivalent test; by
                          ``(ii) the sum of--
                                  ``(I) the maximum power described in 
                                clause (i); and
                                  ``(II) the net power of the internal 
                                combustion or heat engine, as 
                                determined in accordance with standards 
                                established by the Society of 
                                Automobile Engineers.
                  ``(F) Motor vehicle.--The term `motor vehicle' has 
                the meaning given the term in section 216 of the Clean 
                Air Act (42 U.S.C. 7550).
                  ``(G) New qualified hybrid motor vehicle.--The term 
                `new qualified hybrid motor vehicle' means a motor 
                vehicle that--
                          ``(i) draws propulsion energy from both--
                                  ``(I) an internal combustion engine 
                                (or heat engine that uses combustible 
                                fuel); and
                                  ``(II) an energy storage device;
                          ``(ii) in the case of a passenger automobile 
                        or light truck--
                                  ``(I) in the case of a 2001 or later 
                                model vehicle, receives a certificate 
                                of conformity under the Clean Air Act 
                                (42 U.S.C. 7401 et seq.) and produces 
                                emissions at a level that is at or 
                                below the standard established by a 
                                qualifying California standard 
                                described in section 243(e)(2) of the 
                                Clean Air Act (42 U.S.C. 7583(e)(2)) 
                                for that make and model year; and
                                  ``(II) in the case of a 2004 or later 
                                model vehicle, is certified by the 
                                Administrator as producing emissions at 
                                a level that is at or below the level 
                                established for Bin 5 vehicles in the 
                                Tier 2 regulations promulgated by the 
                                Administrator under section 202(i) of 
                                the Clean Air Act (42 U.S.C. 7521(i)) 
                                for that make and model year vehicle; 
                                and
                          ``(iii) employs a vehicle braking system that 
                        recovers waste energy to charge an energy 
                        storage device.
                  ``(H) Vehicle inertia weight class.--The term 
                `vehicle inertia weight class' has the meaning given 
                the term in regulations promulgated by the 
                Administrator for purposes of the administration of 
                title II of the Clean Air Act (42 U.S.C. 7521 et seq.).
        ``(2) Allocation.--
                  ``(A) In general.--The Secretary shall allocate a 
                partial credit to a fleet or covered person under this 
                title if the fleet or person acquires a new qualified 
                hybrid motor vehicle that is eligible to receive a 
                credit under each of the tables in subparagraph (C).
                  ``(B) Amount.--The amount of a partial credit 
                allocated under subparagraph (A) for a vehicle 
                described in that subparagraph shall be equal to the 
                sum of--
                          ``(i) the partial credits determined under 
                        table 1 in subparagraph (C); and
                          ``(ii) the partial credits determined under 
                        table 2 in subparagraph (C).
                  ``(C) Tables.--The tables referred to in 
                subparagraphs (A) and (B) are as follows:

                               ``Table 1

``Partial credit for increased fuel                                    
  efficiency:                                         Amount of credit:
        At least 125% but less than 150% of 2000 model year       0.14 
            city fuel efficiency.
        At least 150% but less than 175% of 2000 model year       0.21 
            city fuel efficiency.
        At least 175% but less than 200% of 2000 model year       0.28 
            city fuel efficiency.
        At least 200% but less than 225% of 2000 model year       0.35 
            city fuel efficiency.
        At least 225% but less than 250% of 2000 model year       0.50.
            city fuel efficiency.

                               ``Table 2

``Partial credit for `Maximum                                          
  Available Power':                                   Amount of credit:
        At least 5% but less than 10%..........................  0.125 
        At least 10% but less than 20%.........................  0.250 
        At least 20% but less than 30%.........................  0.375 
        At least 30% or more...................................  0.500.
                  ``(D) Use of credits.--At the request of a fleet or 
                covered person allocated a credit under this 
                subsection, the Secretary shall, for the year in which 
                the acquisition of the qualified hybrid motor vehicle 
                is made, treat that credit as the acquisition of 1 
                alternative fueled vehicle that the fleet or covered 
                person is required to acquire under this title.
          ``(3) Regulations.--The Secretary shall promulgate 
        regulations under which any Federal fleet that acquires a new 
        qualified hybrid motor vehicle will receive partial credits 
        determined under the tables contained in paragraph (2)(C) for 
        purposes of meeting the requirements of section 303.
  ``(s) Credit for Substantial Contribution Towards Use of Dedicated 
Vehicles in Noncovered Fleets.--
          ``(1) Definitions.--In this subsection:
                  ``(A) Dedicated vehicle.--The term `dedicated 
                vehicle' includes--
                          ``(i) a light, medium, or heavy duty vehicle; 
                        and
                          ``(ii) a neighborhood electric vehicle.
                  ``(B) Medium or heavy duty vehicle.--The term `medium 
                or heavy duty vehicle' includes a vehicle that--
                          ``(i) operates solely on alternative fuel; 
                        and
                          ``(ii)(I) in the case of a medium duty 
                        vehicle, has a gross vehicle weight rating of 
                        more than 8,500 pounds but not more than 14,000 
                        pounds; or
                          ``(II) in the case of a heavy duty vehicle, 
                        has a gross vehicle weight rating of more than 
                        14,000 pounds.
                  ``(C) Substantial contribution.--The term 
                `substantial contribution' (equal to 1 full credit) 
                means not less than $15,000 in cash or in kind 
                services, as determined by the Secretary.
          ``(2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title if the 
        fleet or person makes a substantial contribution toward the 
        acquisition and use of dedicated vehicles by a person that 
        owns, operates, leases, or otherwise controls a fleet that is 
        not covered by this title.
          ``(3) Multiple credits for medium and heavy duty dedicated 
        vehicles.--The Secretary shall issue 2 full credits to a fleet 
        or covered person under this title if the fleet or person 
        acquires a medium or heavy duty dedicated vehicle.
          ``(4) Use of credits.--At the request of a fleet or covered 
        person allocated a credit under this subsection, the Secretary 
        shall, for the year in which the acquisition of the dedicated 
        vehicle is made, treat that credit as the acquisition of 1 
        alternative fueled vehicle that the fleet or covered person is 
        required to acquire under this title.
          ``(5) Limitation.--Per vehicle credits acquired under this 
        subsection shall not exceed the per vehicle credits allowed 
        under this section to a fleet for qualifying vehicles in each 
        of the weight categories (light, medium, or heavy duty).
  ``(t) Credit for Substantial Investment in Alternative Fuel 
Infrastructure.--
          ``(1) Definitions.--In this section, the term `qualifying 
        infrastructure' means--
                  ``(A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                  ``(B) facilities or equipment required to maintain, 
                repair, or operate alternative fueled vehicles;
                  ``(C) training programs, educational materials, or 
                other activities necessary to provide information 
                regarding the operation, maintenance, or benefits 
                associated with alternative fueled vehicles; and
                  ``(D) such other activities the Secretary considers 
                to constitute an appropriate expenditure in support of 
                the operation, maintenance, or further widespread 
                adoption of or utilization of alternative fueled 
                vehicles.
          ``(2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title for 
        investment in qualifying infrastructure if the qualifying 
        infrastructure is open to the general public during regular 
        business hours.
          ``(3) Amount.--For the purposes of credits under this 
        subsection--
                  ``(A) 1 credit shall be equal to a minimum investment 
                of $25,000 in cash or in kind services, as determined 
                by the Secretary; and
                  ``(B) except in the case of a Federal or State fleet, 
                no part of the investment may be provided by Federal or 
                State funds.
          ``(4) Use of credits.--At the request of a fleet or covered 
        person allocated a credit under this subsection, the Secretary 
        shall, for the year in which the investment is made, treat that 
        credit as the acquisition of 1 alternative fueled vehicle that 
        the fleet or covered person is required to acquire under this 
        title.''.
  (c) Lease Condensate Fuels.--Section 301 of the Energy Policy Act of 
1992 (42 U.S.C. 13211) is amended--
          (1) in paragraph (2), by inserting ``mixtures containing 50 
        percent or more by volume of lease condensate or fuels 
        extracted from lease condensate;'' after ``liquified petroleum 
        gas;'';
          (2) in paragraph (15), by inserting ``mixtures containing 50 
        percent or more by volume of lease condensate or fuels 
        extracted from lease condensate;'' after ``liquified petroleum 
        gas;''; and
          (3) by adding at the end the following:
          ``(16) the term `lease condensate' means a mixture, primarily 
        of pentanes and heavier hydrocarbons, which is recovered as a 
        liquid from natural gas in lease separation facilities.''.

                  Subtitle B--Automobile Fuel Economy

SEC. 711. AUTOMOBILE FUEL ECONOMY STANDARDS.

  (a) Title 49 Amendment.--Section 32902(f) of title 49, United States 
Code, is amended to read as follows:
  ``(f) Considerations.--When deciding maximum feasible average fuel 
economy under this section, the Secretary of Transportation shall 
consider the following matters:
          ``(1) technological feasibility;
          ``(2) economic practicability;
          ``(3) the effect of other motor vehicle standards of the 
        Government on fuel economy;
          ``(4) the need of the United States to conserve energy;
          ``(5) the effects of fuel economy standards on motor vehicle 
        and passenger safety; and
          ``(6) the effects of compliance with average fuel economy 
        standards on levels of employment in the United States.''.
  (b) Clarification of Authority.--Section 32902(b) of title 49, United 
States Code, is amended by inserting before the period at the end the 
following: ``or such other number as the Secretary prescribes under 
subsection (c)''.
  (c) Environmental Assessment.--When issuing final regulations setting 
forth increased average fuel economy standards under section 32902(a) 
or section 32902(c) of title 49, United States Code, the Secretary of 
Transportation shall also issue an environmental assessment of the 
effects of the increased standards on the environment under the 
National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
  (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Transportation $5,000,000 for each of fiscal years 2004 through 2008.

SEC. 712. DUAL-FUELED AUTOMOBILES.

  (a) Manufacturing Incentives.--Section 32905 of title 49, United 
States Code, is amended--
          (1) in subsections (b) and (d), by striking ``1993-2004'' and 
        inserting ``1993-2008'';
          (2) in subsection (f), by striking ``2001'' and inserting 
        ``2005'';
          (3) in subsection (f)(1), by striking ``2004'' and inserting 
        ``2008''; and
          (4) in subsection (g), by striking ``September 30, 2000'' and 
        inserting ``September 30, 2004''.
  (b) Maximum Fuel Economy Increase.--Subsection (a)(1) of section 
32906 of title 49, United States Code, is amended--
          (1) in subparagraph (A), by striking ``the model years 1993-
        2004'' and inserting ``model years 1993-2008''; and
          (2) in subparagraph (B), by striking ``the model years 2005-
        2008'' and inserting ``model years 2009-2012''.

SEC. 713. FEDERAL FLEET FUEL ECONOMY.

  Section 32917 of title 49, United States Code, is amended to read as 
follows:

``Sec. 32917. Standards for executive agency automobiles

  ``(a) Baseline Average Fuel Economy.--The head of each executive 
agency shall determine, for all automobiles in the agency's fleet of 
automobiles that were leased or bought as a new vehicle in fiscal year 
1999, the average fuel economy for such automobiles. For the purposes 
of this section, the average fuel economy so determined shall be the 
baseline average fuel economy for the agency's fleet of automobiles.
  ``(b) Increase of Average Fuel Economy.--The head of an executive 
agency shall manage the procurement of automobiles for that agency in 
such a manner that not later than September 30, 2005, the average fuel 
economy of the new automobiles in the agency's fleet of automobiles is 
not less than 3 miles per gallon higher than the baseline average fuel 
economy determined under subsection (a) for that fleet.
  ``(c) Calculation of Average Fuel Economy.--Average fuel economy 
shall be calculated for the purposes of this section in accordance with 
guidance which the Secretary of Transportation shall prescribe for the 
implementation of this section.
  ``(d) Definitions.--In this section:
          ``(1) The term `automobile' does not include any vehicle 
        designed for combat-related missions, law enforcement work, or 
        emergency rescue work.
          ``(2) The term `executive agency' has the meaning given that 
        term in section 105 of title 5.
          ``(3) The term `new automobile', with respect to the fleet of 
        automobiles of an executive agency, means an automobile that is 
        leased for at least 60 consecutive days or bought, by or for 
        the agency, after September 30, 1999.''.

SEC. 714. RAILROAD EFFICIENCY.

  (a) Establishment.--The Secretary of Energy, in cooperation with the 
Secretary of Transportation and the Administrator of the Environmental 
Protection Agency, shall establish a cost-shared, public-private 
research partnership to develop and demonstrate railroad locomotive 
technologies that increase fuel economy, reduce emissions, and lower 
costs of operation. Such partnership shall involve the Federal 
Government, railroad carriers, locomotive manufacturers and equipment 
suppliers, and the Association of American Railroads.
  (b) Authorization of Appropriations.-- For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy $25,000,000 for fiscal year 2004, $35,000,000 for fiscal year 
2005, and $50,000,000 for fiscal year 2006.

SEC. 715. REDUCTION OF ENGINE IDLING IN HEAVY-DUTY VEHICLES.

  (a) Identification.--Not later than 180 days after the date of 
enactment of this section, the Secretary of Energy, in consultation 
with the Secretary of Transportation and the Administrator of the 
Environmental Protection Agency, shall commence a study to analyze the 
potential fuel savings and emissions reductions resulting from use of 
idling reduction technologies as they are applied to heavy-duty 
vehicles. Upon completion of the study, the Secretary of Energy shall, 
by rule, certify those idling reduction technologies with the greatest 
economic or technical feasibility and the greatest potential for fuel 
savings and emissions reductions, and publish a list of such certified 
technologies in the Federal Register.
  (b) Vehicle Weight Exemption.--Section 127(a) of Title 23, United 
States Code, is amended by adding at the end the following:
    ``In order to promote reduction of fuel use and emissions due to 
engine idling, the maximum gross vehicle weight limit and the axle 
weight limit for any motor vehicle equipped with an idling reduction 
technology certified by the U.S. Department of Energy will be increased 
by an amount necessary to compensate for the additional weight of the 
idling reduction system, provided that the weight increase shall be no 
greater than 400 pounds.''
  (c) Definitions.--For the purposes of this section:
          (1) The term ``idling reduction technology'' means a device 
        or system of devices utilized to reduce long-duration idling of 
        a vehicle.
          (2) The term ``heavy-duty vehicle'' means a vehicle that has 
        a gross vehicle weight rating greater than 8,500 pounds and is 
        powered by a diesel engine.
          (3) The term ``long-duration idling'' means the operation of 
        a main drive engine, for a period greater than 30 consecutive 
        minutes, where the main drive engine is not engaged in gear. 
        Such term does not apply to routine stoppages associated with 
        traffic movement or congestion.

                          TITLE VIII--HYDROGEN

                  Subtitle A--Basic Research Programs

SEC. 801. SHORT TITLE.

  This subtitle may be cited as the ``George E. Brown, Jr. and Robert 
S. Walker Hydrogen Future Act of 2003''.

SEC. 802. MATSUNAGA ACT AMENDMENT.

  The Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990 (42 U.S.C. 12401 et seq.) is amended by 
striking sections 102 through 109 and inserting the following:

``SEC. 102. DEFINITIONS.

  ``In this Act--
          ``(1) the term `advisory committee' means the Hydrogen and 
        Fuel Cell Technical Advisory Committee established under 
        section 107.
          ``(2) the term `Department' means the Department of Energy.
          ``(3) the term `fuel cell' means a device that directly 
        converts the chemical energy of a fuel into electricity by an 
        electrochemical process.
          ``(4) the term `infrastructure' means the equipment, systems, 
        or facilities used to produce, distribute, deliver, or store 
        hydrogen.
          ``(5) the term `Secretary' means the Secretary of Energy.

``SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.

  ``(a) In General.--The Secretary shall conduct a research and 
development program on technologies related to the production, 
distribution, storage, and use of hydrogen energy, fuel cells, and 
related infrastructure.
  ``(b) Goal.--The goal of such program shall be to enable the safe, 
economic, and environmentally sound use of hydrogen energy, fuel cells, 
and related infrastructure for transportation, commercial, industrial, 
residential, and electric power generation applications.
  ``(c) Focus.--In carrying out activities under this section, the 
Secretary shall focus on critical technical issues including, but not 
limited to--
          ``(1) the production of hydrogen from diverse energy sources, 
        with emphasis on cost-effective production from renewable 
        energy sources;
          ``(2) the delivery of hydrogen, including safe delivery in 
        fueling stations and use of existing hydrogen pipelines;
          ``(3) the storage of hydrogen, including storage of hydrogen 
        in surface transportation;
          ``(4) fuel cell technologies for transportation, stationary 
        and portable applications, with emphasis on cost-reduction of 
        fuel cell stacks; and
          ``(5) the use of hydrogen energy and fuel cells, including 
        use in--
                  ``(A) isolated villages, islands, and areas in which 
                other energy sources are not available or are very 
                expensive; and
                  ``(B) foreign markets, particularly where an energy 
                infrastructure is not well developed.
  ``(d) Codes and Standards.--The Secretary shall facilitate the 
development of domestic and international codes and standards and seek 
to resolve other critical regulatory and technical barriers preventing 
the introduction of hydrogen energy and fuel cells into the 
marketplace.
  ``(e) Solicitation.--The Secretary shall carry out the research and 
development activities authorized under this section through 
solicitation of proposals, and evaluation using competitive merit 
review.
  ``(f) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 20 percent of the cost of proposed 
research and development projects. The Secretary may reduce or 
eliminate the cost sharing requirement--
          ``(1) if the Secretary determines that the research and 
        development is of a basic or fundamental nature, or
          ``(2) for technical analyses, outreach activities, and 
        educational programs that the Secretary does not expect to 
        result in a marketable product.

``SEC. 104. DEMONSTRATION PROGRAMS.

  ``(a) Requirement.--In conjunction with activities conducted under 
section 103, the Secretary shall conduct demonstrations of hydrogen 
energy and fuel cell technologies in order to evaluate the commercial 
potential of such technologies.
  ``(b) Solicitation.--The Secretary shall carry out the demonstrations 
authorized under this section through solicitation of proposals, and 
evaluation using competitive merit review.
  ``(c) Cost Sharing.--The Secretary shall require a commitment from 
non-Federal sources of at least 50 percent of the costs directly 
relating to a demonstration project under this section. The Secretary 
may reduce such non-Federal requirement if the Secretary determines 
that the reduction is appropriate considering the technological risks 
involved in the project.

``SEC. 105. TECHNOLOGY TRANSFER.

  ``The Secretary shall conduct programs to--
          ``(1) transfer critical hydrogen energy and fuel cell 
        technologies to the private sector in order to promote wider 
        understanding of such technologies and wider use of research 
        progress under this Act;
          ``(2) to accelerate wider application of hydrogen energy and 
        fuel cell technologies in foreign countries in order to 
        increase the global market for the technologies and foster 
        global development without harmful environmental effects;
          ``(3) foster the exchange of generic, nonproprietary 
        information and technology developed pursuant to this Act, 
        among industry, academia, and the Federal agencies; and
          ``(4) inventory and assess the technical and commercial 
        viability of technologies related to production, distribution, 
        storage, and use of hydrogen energy and fuel cells.

``SEC. 106. COORDINATION AND CONSULTATION.

  ``The Secretary shall have overall management responsibility for 
carrying out programs under this Act. In carrying out such programs, 
the Secretary--
          ``(1) shall establish a central point for the coordination of 
        all hydrogen energy and fuel cell research, development, and 
        demonstration activities of the Department;
          ``(2) in carrying out the Secretary's authorities pursuant to 
        this Act, shall consult with other Federal agencies as 
        appropriate, and may obtain the assistance of any Federal 
        agency, on a reimbursable basis or otherwise and with the 
        consent of such agency;
          ``(3) shall attempt to ensure that activities under this Act 
        do not unnecessarily duplicate any available research and 
        development results or displace or compete with privately 
        funded hydrogen and fuel cell energy activities.

``SEC. 107. ADVISORY COMMITTEE.

  ``(a) Establishment.--There is hereby established the Hydrogen and 
Fuel Cell Technical Advisory Committee, to advise the Secretary on the 
programs under this Act.
  ``(b) Membership.--The advisory committee shall be comprised of not 
fewer than 12 nor more than 25 members appointed by the Secretary based 
on their technical and other qualifications from domestic industry, 
automakers, universities, professional societies, Federal laboratories, 
financial institutions, and environmental and other organizations as 
the Secretary deems appropriate. The advisory committee shall have a 
chairperson, who shall be elected by the members from among their 
number.
  ``(c) Terms.--Members of the advisory committee shall be appointed 
for terms of 3 years, with each term to begin not later than 3 months 
after the date of enactment of the Energy Policy Act of 2003, except 
that one-third of the members first appointed shall serve for 1 year, 
and one-third of the members first appointed shall serve for 2 years, 
as designated by the Secretary at the time of appointment.
  ``(d) Review.--The advisory committee shall review and make any 
necessary recommendations to the Secretary on--
          ``(1) implementation and conduct of programs under this Act;
          ``(2) economic, technological, and environmental consequences 
        of the deployment of technologies related to production, 
        distribution, storage, and use of hydrogen energy, and fuel 
        cells;
          ``(3) means for resolving barriers to implementing hydrogen 
        and fuel cell technologies; and
          ``(4) the coordination plan and any updates thereto prepared 
        by the Secretary pursuant to section 108.
  ``(e) Response.--The Secretary shall consider any recommendations 
made by the advisory committee, and shall provide a response to the 
advisory committee within 30 days after receipt of such 
recommendations. Such response shall either describe the implementation 
of the advisory committee's recommendations or provide an explanation 
of the reasons that any such recommendations will not be implemented.
  ``(f) Support.--The Secretary shall provide such staff, funds and 
other support as may be necessary to enable the advisory committee to 
carry out its functions. In carrying out activities pursuant to this 
section, the advisory committee may also obtain the assistance of any 
Federal agency, on a reimbursable basis or otherwise and with the 
consent of such agency.

``SEC. 108. COORDINATION PLAN.

  ``(a) Plan.--The Secretary, in consultation with other Federal 
agencies, shall prepare and maintain on an ongoing basis a 
comprehensive plan for activities under this Act.
  ``(b) Development.--In developing such plan, the Secretary shall--
          ``(1) consider the guidance of the National Hydrogen Energy 
        Roadmap published by the Department in November 2002 and any 
        updates thereto;
          ``(2) consult with the advisory committee;
          ``(3) consult with interested parties from domestic industry, 
        automakers, universities, professional societies, Federal 
        laboratories, financial institutions, and environmental and 
        other organizations as the Secretary deems appropriate.
  ``(c) Contents.--At a minimum, the plan shall provide--
          ``(1) an assessment of the effectiveness of the programs 
        authorized under this Act, including a summary of 
        recommendations of the advisory committee for improvements in 
        such programs;
          ``(2) a description of proposed research, development, and 
        demonstration activities planned by the Department for the next 
        five years;
          ``(3) a description of the role Federal laboratories, 
        institutions of higher education, small businesses, and other 
        private sector firms are expected to play in such programs;
          ``(4) cost and performance milestones that will be used to 
        evaluate the programs for the next five years; and
          ``(5) any significant technical, regulatory, and other 
        hurdles that stand in the way of achieving such cost and 
        performance milestones, and how the programs will address those 
        hurdles; and
          ``(6) to the extent practicable, an analysis of Federal, 
        State, local, and private sector hydrogen research, 
        development, and demonstration activities to identify areas for 
        increased intergovernmental and private-public sector 
        collaboration.
  ``(d) Report.--Not later than January 1, 2005, and biennially 
thereafter, the Secretary shall transmit to Congress the comprehensive 
plan developed for the programs authorized under this Act, or any 
updates thereto.

``SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out the purposes 
of this Act--
          ``(1) such sums as may be necessary for fiscal years 1992 
        through 2003;
          ``(2) $105,000,000 for fiscal year 2004;
          ``(3) $150,000,000 for fiscal year 2005;
          ``(4) $175,000,000 for fiscal year 2006;
          ``(5) $200,000,000 for fiscal year 2007; and
          ``(6) $225,000,000 for fiscal year 2008.''.

SEC. 803. HYDROGEN TRANSPORTATION AND FUEL INITIATIVE.

  (a) Vehicle Technologies.--The Secretary shall carry out a research, 
development, demonstration, and commercial application program on 
advanced hydrogen-powered vehicle technologies. Such program shall 
address--
          (1) engine and emission control systems;
          (2) energy storage, electric propulsion, and hybrid systems;
          (3) automotive materials;
          (4) hydrogen-carrier fuels; and
          (5) other advanced vehicle technologies.
  (b) Hydrogen Fuel Initiative.--In coordination with the program 
authorized in subsection (a), the Secretary of Energy, in partnership 
with the private sector, shall conduct a research, development, 
demonstration and commercial application program designed to enable the 
rapid and coordinated introduction of hydrogen-fueled vehicles and 
associated infrastructure into commerce. Such program shall address--
          (1) production of hydrogen from diverse energy resources, 
        including--
                  (A) renewable energy resources;
                  (B) fossil fuels, in conjunction with carbon capture 
                and sequestration;
                  (C) hydrogen-carrier fuels; and
                  (D) nuclear energy;
          (2) delivery of hydrogen or hydrogen-carrier fuels, 
        including--
                  (A) transmission by pipeline and other distribution 
                methods; and
                  (B) safe, convenient, and economic refueling of 
                vehicles, either at central refueling stations or 
                through distributed on-site generation;
          (3) storage of hydrogen or hydrogen-carrier fuels, including 
        development of materials for safe and economic storage in 
        gaseous, liquid or solid forms at refueling facilities or 
        onboard vehicles;
          (4) development of advanced vehicle technologies, such as 
        efficient fuel cells and direct hydrogen combustion engines, 
        and related component technologies such as advanced materials 
        and control systems; and
          (5) development of necessary codes, standards, and safety 
        practices to accompany the production, distribution, storage 
        and use of hydrogen or hydrogen-carrier fuels in 
        transportation.
  (c) Matsunaga Act.--In carrying out programs and projects under 
subsections (a) and (b), the Secretary shall ensure that such programs 
and projects are consistent with, and do not unnecessarily duplicate, 
activities carried out under the programs authorized under the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12401 et seq.).
  (d) Advisory Committee.--The Hydrogen and Fuel Cell Technical 
Advisory Committee authorized under section 107 of the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act of 1990 
(42 U.S.C. 12408), as amended in this title, shall also advise the 
Secretary on the programs and activities carried out under this 
section.
  (e) Solicitation.--The Secretary shall carry out the programs 
authorized under this section through solicitation of proposals, and 
evaluation using competitive merit review.
  (f) Cost Sharing.--The Secretary shall require a commitment from non-
Federal sources of at least 50 percent of the costs directly relating 
to a demonstration project under this section. The Secretary may reduce 
such non-Federal requirement if the Secretary determines that the 
reduction is appropriate considering the technological risks involved 
in the project.
  (g) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary--
          (1) for activities pursuant to subsection (a), to remain 
        available until expended--
                  (A) $100,000,000 for each of fiscal years 2004 and 
                2005;
                  (B) $110,000,000 for each of fiscal years 2006 and 
                2007; and
                  (C) $120,000,000 for fiscal year 2008; and
          (2) for activities pursuant to subsection (b), to remain 
        available until expended--
                  (A) $125,000,000 for fiscal year 2004;
                  (B) $150,000,000 for fiscal year 2005;
                  (C) $175,000,000 for fiscal year 2006; and
                  (D) $200,000,000 for each of fiscal years 2007 and 
                2008.

SEC. 804. INTERAGENCY TASK FORCE AND COORDINATION PLAN.

  (a) Establishment.--Not later than 120 days after the date of 
enactment of this Act, the Secretary shall establish an interagency 
task force to coordinate Federal hydrogen and fuel cell energy 
activities.
  (b) Composition.--The task force shall be chaired by a designee of 
the Secretary, and shall include representatives of--
          (1) the Office of Science and Technology Policy;
          (2) the Department of Transportation;
          (3) the Department of Defense;
          (4) the Department of Commerce (including the National 
        Institute for Standards and Technology);
          (5) the Environmental Protection Agency;
          (6) the National Aeronautics and Space Administration;
          (7) the Department of State; and
          (8) other Federal agencies as the Director considers 
        appropriate.
  (c) Coordination Plan.--The task force shall prepare a comprehensive 
coordination plan for Federal hydrogen and fuel cell energy activities, 
which shall include a summary of such activities.
  (d) Report.--Not later than one year after it is established, the 
task force shall report to Congress on the coordination plan in 
subsection (c) and on the interagency coordination of Federal hydrogen 
and fuel cell energy activities.

SEC. 805. REVIEW BY THE NATIONAL ACADEMIES.

  Not later than two years after the date of enactment of this Act, and 
every four years thereafter, the Secretary shall enter into a contract 
with the National Academies. Such contract shall require the National 
Academies to perform a review of the progress made through Federal 
hydrogen and fuel cell energy programs and activities, including the 
need for modified or additional programs, and to report to the Congress 
on the results of such review. There are authorized to be appropriated 
to the Secretary such sums as may be necessary to carry out the 
requirements of this section.

                   Subtitle B--Demonstration Programs

SEC. 811. DEFINITIONS.

  For the purposes of this subtitle and subtitle C:--
          (1) The term ``fuel cell'' means a device that directly 
        converts the chemical energy of a fuel into electricity by an 
        electrochemical process.
          (2) The term ``hydrogen-carrier fuel'' means any hydrocarbon 
        fuel that is capable of being thermochemically processed or 
        otherwise reformed to produce hydrogen;
          (3) The term ``infrastructure'' means the equipment, systems, 
        or facilities used to produce, distribute, deliver, or store 
        hydrogen or hydrogen-carrier fuels.
          (4) The term ``institution of higher education'' has the 
        meaning given that term in section 101(a) of the Higher 
        Education Act of 1965 (20 U.S.C. 1001(a)).
          (5) The term ``Secretary'' means the Secretary of Energy.

SEC. 812. HYDROGEN VEHICLE DEMONSTRATION PROGRAM.

  (a) In General.--The Secretary shall establish a program for 
demonstration and commercial application of hydrogen-powered vehicles 
and associated hydrogen fueling infrastructure in a variety of 
transportation-related applications, including--
          (1) fuel cell vehicles in light-duty vehicle fleets;
          (2) heavy-duty fuel cell on-road and off-road vehicles, 
        including mass transit buses;
          (3) use of hydrogen-powered vehicles and hydrogen fueling 
        infrastructure (including multiple hydrogen refueling stations) 
        along major transportation routes or in entire regions; and
          (4) other similar projects as the Secretary may deem 
        necessary to contribute to the rapid demonstration and 
        deployment of hydrogen-based technologies in widespread use for 
        transportation.
  (b) Eligibility.--Federal, state, tribal, and local governments, 
academic and other non-profit organizations, private entities, and 
consortia of these entities shall be eligible for these projects.
  (c) Selection.--In selecting projects under this section, the 
Secretary shall--
          (1) consult with Federal, State, local and private fleet 
        managers to identify potential projects where hydrogen-powered 
        vehicles may be placed into service;
          (2) identify not less than 10 sites at which to carry out 
        projects under this program, 2 of which must be based at 
        Federal facilities;
          (3) select projects based on the following factors--
                  (A) geographic diversity;
                  (B) a diverse set of operating environments, duty 
                cycles, and likely weather conditions;
                  (C) the interest and capability of the participating 
                agencies, entities, or fleets;
                  (D) the availability and appropriateness of potential 
                sites for refueling infrastructure and for maintenance 
                of the vehicle fleet;
                  (E) the existence of traffic congestion in the area 
                expected to be served by the hydrogen-powered vehicles;
                  (F) proximity to non-attainment areas as defined in 
                section 171 of the Clean Air Act (42 U.S.C. 7501); and
                  (G) such other criteria as the Secretary determines 
                to be appropriate in order to carry out the purposes of 
                the program.
  (d) Infrastructure.--In funding projects under this section, the 
Secretary shall also support the installation of refueling 
infrastructure at sites necessary for success of the project, giving 
preference to those infrastructure projects that include co-production 
of both--
          (1) hydrogen for use in transportation; and
          (2) electricity that can be consumed on site.
  (e) Operation and Maintenance Period.--Vehicles purchased for 
projects under this section shall be operated and maintained by the 
participating agencies or entities in regular duty cycles for a period 
of not less than 12 months.
  (f) Training and Technical Support.--In funding proposals under this 
section, the Secretary shall also provide funding for training and 
technical support as may be necessary to assure the success of such 
projects, including training and technical support in--
          (1) the installation, operation, and maintenance of fueling 
        infrastructure;
          (2) the operation and maintenance of fuel cell vehicles; and
          (3) data collection necessary to monitor project performance.
  (g) Cost-Sharing.--Except as otherwise provided, the Secretary shall 
require a commitment from non-Federal sources of at least 50 percent of 
the costs directly relating to a demonstration project under this 
section. The Secretary may reduce such non-Federal requirement if the 
Secretary determines that the reduction is appropriate considering the 
technological risks involved in the project.
  (h) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$50,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

SEC. 813. STATIONARY FUEL CELL DEMONSTRATION PROGRAM.

  (a) In General.--The Secretary shall establish a program for 
demonstration and commercial application of hydrogen fuel cells in 
stationary applications, including--
          (1) fuel cells for use in residential and commercial 
        buildings;
          (2) portable fuel cells, including auxiliary power units in 
        trucks;
          (3) small form and micro fuel cells of 20 watts or less;
          (4) distributed generation systems with fuel cells using 
        renewable energy; and
          (5) other similar projects as the Secretary may deem 
        necessary to contribute to the rapid demonstration and 
        deployment of hydrogen-based technologies in widespread use.
  (b) Competitive Evaluation.--Proposals submitted in response to 
solicitations issued pursuant to this section shall be evaluated on a 
competitive basis using peer review. The Secretary is not required to 
make an award under this section in the absence of a meritorious 
proposal.
  (c) Preference.--The Secretary shall give preference, in making an 
award under this section, to proposals that--
          (1) are submitted jointly from consortia that include two or 
        more participants from institutions of higher education, 
        industry, State, tribal, or local governments, and Federal 
        laboratories; and
          (2) that reflect proven experience and capability with 
        technologies relevant to the projects proposed.
  (d) Training and Technical Support.--In funding proposals under this 
section, the Secretary shall also provide funding for training and 
technical support as may be necessary to assure the success of such 
projects, including training and technical support in the installation, 
operation, and maintenance of fuel cells and the collection of data to 
monitor project performance.
  (e) Cost-Sharing.--Except as otherwise provided, the Secretary shall 
require a commitment from non-Federal sources of at least 50 percent of 
the costs directly relating to a demonstration project under this 
section. The Secretary may reduce such non-Federal requirement if the 
Secretary determines that the reduction is appropriate considering the 
technological risks involved in the project.
  (f) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$50,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

SEC. 814. HYDROGEN DEMONSTRATION PROGRAMS IN NATIONAL PARKS.

  (a) Study.--Not later than 1 year after the date of enactment of this 
section, the Secretary of the Interior and the Secretary of Energy 
shall jointly study and report to Congress on--
          (1) the energy needs and uses at National Parks; and
          (2) the potential for fuel cell and other hydrogen-based 
        technologies to meet such energy needs in--
                  (A) stationary applications, including power 
                generation, combined heat and power for buildings and 
                campsites, and standby and backup power systems; and
                  (B) transportation-related applications, including 
                support vehicles, passenger vehicles and heavy-duty 
                trucks and buses.
  (b) Pilot Projects.--Based on the results of the study conducted 
under subsection (a), the Secretary of the Interior shall fund not 
fewer than 3 pilot projects in national parks to provide for 
demonstration of fuel cells or other hydrogen-based technologies in 
those applications where the greatest potential for such use in 
National Parks has been identified. Such pilot projects shall be 
geographically distributed throughout the United States.
  (c) Definition.--For the purpose of this section, the term ``National 
Parks'' means those areas of land and water now or hereafter 
administered by the Secretary of the Interior through the National Park 
Service for park, monument, historic, parkway, recreational, or other 
purposes.
  (d) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of the Interior $1,000,000 for fiscal 
year 2004, and $15,000,000 for fiscal year 2005, to remain available 
until expended.

SEC. 815. INTERNATIONAL DEMONSTRATION PROGRAM.

  (a) In General.--The Secretary, in consultation with the 
Administrator of the U.S. Agency for International Development, shall 
conduct demonstrations of fuel cells and associated hydrogen fueling 
infrastructure in countries other than the United States, particularly 
in areas where an energy infrastructure is not already well developed.
  (b) Eligible Technologies.--The program may demonstrate--
          (1) fuel cell vehicles in light-duty vehicle fleets;
          (2) heavy-duty fuel cell on-road and off-road vehicles;
          (3) stationary fuel cells in residential and commercial 
        buildings; or
          (4) portable fuel cells, including auxiliary power units in 
        trucks.
  (c) Participants.--
          (1) Eligibility.--Foreign nations, non-profit organizations, 
        and private companies shall be eligible for these pilot 
        projects.
          (2) Cooperation.--Eligible entities may perform the projects 
        in cooperation with United States non-profit organizations and 
        private companies.
          (3) Cost-Sharing.--The Secretary may require a commitment 
        from participating private companies and from participating 
        foreign countries.
  (d) Authorization of Appropriations.--For activities conducted under 
this section, there are authorized to be appropriated to the Secretary 
$25,000,000 for each of fiscal years 2006 through 2010, to remain 
available until expended.

SEC. 816. TRIBAL STATIONARY HYBRID POWER DEMONSTRATION.

  (a) In General.--Not later than 1 year after the date of enactment of 
this Act, the Secretary, in cooperation with Indian tribes, shall 
develop and transmit to Congress a strategy for a demonstration and 
commercial application program to develop hybrid distributed power 
systems on Indian lands that combine--
          (1) one renewable electric power generating technology of 2 
        megawatts or less located near the site of electric energy use; 
        and
          (2) fuel cell power generation suitable for use in 
        distributed power systems.
  (b) Definition.--For the purposes of this section, the terms ``Indian 
tribe'' and ``Indian land'' have the meaning given such terms under 
title XXVI of the Energy Policy Act of 1992 (25 U.S.C. 3501 et seq.), 
as amended by this Act.
  (c) Authorization of Appropriations.--For activities under this 
section, there are authorized to be appropriated to the Secretary of 
Energy $1,000,000 for fiscal year 2005, and $5,000,000 for each of 
fiscal years 2006 through 2008.

SEC. 817. DISTRIBUTED GENERATION PILOT PROGRAM.

  (a) Establishment.--The Secretary shall support a demonstration 
program to develop, deploy, and commercialize distributed generation 
systems to significantly reduce the cost of producing hydrogen from 
renewable energy for use in fuel cells. Such program shall provide the 
necessary infrastructure to test these distributed generation 
technologies at pilot scales in a real-world environment.
  (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy, to remain available until 
expended, for the purposes of carrying out this section--
          (1) $10,000,000 for fiscal year 2004;
          (2) $15,000,000 for fiscal year 2005; and
          (3) $20,000,000 for each of fiscal years 2006 through 2008.

                      Subtitle C--Federal Programs

SEC. 821. PUBLIC EDUCATION AND TRAINING.

  (a) Education.--The Secretary shall conduct a public education 
program designed to increase public interest in and acceptance of 
hydrogen energy and fuel cell technologies.
  (b) Training.--The Secretary shall conduct a program to promote 
university-based training in critical skills for research in, 
production of, and use of hydrogen energy and fuel cell technologies. 
Such program may include research fellowships at institutions of higher 
education, centers of excellence in critical technologies, internships 
in industry, and such other measures as the Secretary deems 
appropriate.
  (c) Authorization of Appropriations.--For activities pursuant to this 
section, there are authorized to be appropriated to the Secretary 
$7,000,000 for each of fiscal years 2004 through 2008.

SEC. 822. HYDROGEN TRANSITION STRATEGIC PLANNING.

  (a) In General.--Not later than September 30, 2004, the head of each 
federal agency with annual outlays of greater than $20,000,000 shall 
submit to the Director of the Office of Management and Budget and to 
the Congress a hydrogen transition strategic plan containing a 
comprehensive assessment of how the transition to a hydrogen-based 
economy could to assist the mission, operation and regulatory program 
of the agency.
  (b) Contents.--At a minimum, each plan shall contain--
          (1) a description of areas within the agency's control where 
        using hydrogen and/or fuel cells could benefit the operation of 
        the agency, assist in the implementation of its regulatory 
        functions or enhance the agency's mission; and
          (2) a description of any agency management practices, 
        procurement policies, regulations, policies, or guidelines that 
        may inhibit the agency's transition to use of fuel cells and 
        hydrogen as an energy source.
  (c) Duration and Revision.--The strategic plan shall cover a period 
of not less than the five years following the fiscal year in which it 
is submitted, and shall be updated and revised at least every three 
years.

SEC. 823. MINIMUM FEDERAL FLEET REQUIREMENT.

  (a) Section 303(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13212(b)) is amended by adding at the end the following:
          ``(4) Hydrogen vehicles.--
                  ``(A) Of the number of vehicles acquired under 
                paragraph (1)(D) by a Federal fleet of 100 or more 
                vehicles, not less than--
                          ``(i) 5 percent in fiscal years 2006 and 
                        2007;
                          ``(ii) 10 percent in fiscal years 2008 and 
                        2009;
                          ``(iii) 15 percent in fiscal years 2010 and 
                        2011; and
                          ``(iv) 20 percent in fiscal years 2012 and 
                        thereafter,
                shall be hydrogen-powered vehicles that meet standards 
                for performance, reliability, cost, and maintenance 
                established by the Secretary.
                  ``(B) The Secretary may establish a lesser 
                percentage, or waive the requirement under subparagraph 
                (A) for any fiscal year entirely, if hydrogen-powered 
                vehicles meeting the standards set by the Secretary 
                pursuant to subparagraph (A) are not available at a 
                purchase price that is less than 150 percent of the 
                purchase price of other comparable alternative fueled 
                vehicles.
                  ``(C) The Secretary may by rule, delay the 
                implementation of the requirements under subparagraph 
                (A) in the event that the Secretary determines that 
                hydrogen-powered vehicles are not commercially or 
                economically available, or that fuel for such vehicles 
                is not commercially or economically available.
                  ``(D) The Secretary, in consultation with the 
                Administrator of General Services, may for reasons of 
                refueling infrastructure use and cost optimization, 
                elect to allocate the acquisitions necessary to achieve 
                the requirements in subparagraph (A) to certain Federal 
                fleets in lieu of requiring each Federal fleet to 
                achieve the requirements in subparagraph (A).''.
  (b) Refueling.--Section 304 of the Energy Policy Act of 1992 (42 
U.S.C. 13213) is amended--
          (1) by redesignating subsection (b) as subsection (c);
          (2) in the second sentence of subsection (a), by striking 
        ``If publicly'' and inserting the following:
  ``(b) Commercial Arrangements.--
          ``(1) In general.--If publicly''; and
          (3) in subsection (b) (as designated by paragraph (2)), by 
        adding at the end the following:
          ``(2) Mandatory arrangements.--
                  ``(A) In general.--In a case in which publicly 
                available fueling facilities are not convenient or 
                accessible to the locations of 2 or more Federal fleets 
                for which hydrogen-powered vehicles are required to be 
                purchased under section 303(b)(4), the Federal agency 
                for which the Federal fleets are maintained (or the 
                Federal agencies for which the Federal fleets are 
                maintained, acting jointly under a memorandum of 
                agreement providing for cost sharing) shall enter into 
                a commercial arrangement as provided in paragraph (1).
                  ``(B) Sunset.--Subparagraph (A) ceases to be 
                effective at the end of fiscal year 2013.''.

SEC. 824. STATIONARY FUEL CELL PURCHASE REQUIREMENT.

  (a) Requirement.--The President, acting through the Secretary of 
Energy, shall seek to ensure that, to the extent economically 
practicable and technically feasible, of the total amount of electric 
energy the Federal Government consumes during any fiscal year, the 
following amounts shall be generated by fuel cells--
          (1) not less than 1 percent in fiscal years 2006 through 
        2008;
          (2) not less than 2 percent in fiscal years 2009 and 2010; 
        and
          (3) not less than 3 percent in fiscal year 2011 and each 
        fiscal year thereafter.
  (b) Compliance.--In complying with the requirements of subsection 
(a), Federal agencies are encouraged to--
          (1) use innovative purchasing practices;
          (2) use fuel cells at the site of electricity usage and in 
        combined heat and power applications; and
          (3) use fuel cells in stand alone power functions, such as 
        but not limited to battery power and backup power.
  (c) Definitions.--For purposes of this section--
          (1) the term ``fuel cells'' means an integrated system 
        comprised of a fuel cell stack assembly and balance of plant 
        components that converts a fuel into electricity using an 
        electrochemical means; and
          (2) the term ``electrical energy'' includes on and off grid 
        power, including premium power applications, standby power 
        applications and electricity generation.
  (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary of 
Energy $30,000,000 for fiscal years 2004, $70,000,000 for fiscal year 
2005, and $100,000,000 for each of fiscal years 2006 and thereafter.

SEC. 825. DEPARTMENT OF ENERGY STRATEGY.

  Not later than 1 year after the date of enactment of this Act, the 
Secretary shall publish and transmit to Congress a plan identifying 
critical technologies, enabling strategies and applications, technical 
targets, and associated timeframes that support the commercialization 
of hydrogen-fueled fuel cell vehicles.

                   TITLE IX--RESEARCH AND DEVELOPMENT

SEC. 901. SHORT TITLE.

  This Title may be cited as the ``Energy Research, Development, 
Demonstration, and Commercial Application Act of 2003''.

SEC. 902. GOALS.

  (a) In General.--In order to achieve the purposes of this title, the 
Secretary shall conduct a balanced set of programs of energy research, 
development, demonstration, and commercial application, focused on--
          (1) increasing the efficiency of all energy intensive sectors 
        through conservation and improved technologies,
          (2) promoting diversity of energy supply,
          (3) decreasing the nation's dependence on foreign energy 
        supplies,
          (4) improving United States energy security, and
          (5) decreasing the environmental impact of energy-related 
        activities.
  (b) Goals.--The Secretary shall publish measurable cost and 
performance-based goals with each annual budget submission in at least 
the following areas:
          (1) energy efficiency for buildings, energy-consuming 
        industries, and vehicles;
          (2) electric energy generation (including distributed 
        generation), transmission, and storage;
          (3) renewable energy technologies including wind power, 
        photovoltaics, solar thermal systems, geothermal energy, 
        hydrogen-fueled systems, biomass-based systems, biofuels, and 
        hydropower;
          (4) fossil energy including power generation, onshore and 
        offshore oil and gas resource recovery, and transportation; and
          (5) nuclear energy including programs for existing and 
        advanced reactors, and education of future specialists.
  (c) Public Comment.--The Secretary shall provide mechanisms for input 
on the annually published goals from industry, university, and other 
public sources.
  (d) Effect of Goals.--Nothing in subsection (a) or the annually 
published goals creates any new authority for any Federal agency, or 
may be used by a Federal agency to support the establishment of 
regulatory standards or regulatory requirements.

SEC. 903. DEFINITIONS.

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

                     Subtitle A--Energy Efficiency

SEC. 911. ENERGY EFFICIENCY.

  (a) In General.--The following sums are authorized to be appropriated 
to the Secretary for energy efficiency and conservation research, 
development, demonstration, and commercial application activities, 
including activities authorized under this subtitle:
          (1) for fiscal year 2004, $616,000,000;
          (2) for fiscal year 2005, $695,000,000;
          (3) for fiscal year 2006, $772,000,000;
          (4) for fiscal year 2007, $865,000,000; and
          (5) for fiscal year 2008, $920,000,000.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) For activities under section 912--
                  (A) for fiscal year 2004, $20,000,000; and
                  (B) for fiscal year 2005, $30,000,000.
          (2) For activities under section 914--
                  (A) for fiscal year 2004, $4,000,000; and
                  (B) for each of fiscal years 2005 through 2008, 
                $7,000,000.
          (3) For activities under section 915--
                  (A) for fiscal year 2004, $20,000,000;
                  (B) for fiscal year 2005, $25,000,000;
                  (C) for fiscal year 2006, $30,000,000;
                  (D) for fiscal year 2007, $35,000,000; and
                  (E) for fiscal year 2008, $40,000,000.
  (c) Extended Authorization.--There are authorized to be appropriated 
to the Secretary for activities under section 912, $50,000,000 for each 
of fiscal years 2006 through 2013.
  (d) None of the funds authorized to be appropriated under this 
section may be used for--
          (1) the promulgation and implementation of energy efficiency 
        regulations;
          (2) the Weatherization Assistance Program under part A of 
        title IV of the Energy Conservation and Production Act;
          (3) the State Energy Program under part D of title III of the 
        Energy Policy and Conservation Act; or
          (4) the Federal Energy Management Program under part 3 of 
        title V of the National Energy Conservation Policy Act.

SEC. 912. NEXT GENERATION LIGHTING INITIATIVE.

  (a) In General.--The Secretary shall carry out a Next Generation 
Lighting Initiative in accordance with this section to support 
research, development, demonstration, and commercial application 
activities related to advanced solid-state lighting technologies based 
on white light emitting diodes.
  (b) Objectives.--The objectives of the initiative shall be to develop 
advanced solid-state organic and inorganic lighting technologies based 
on white light emitting diodes that, compared to incandescent and 
fluorescent lighting technologies, are longer lasting; more energy-
efficient; cost-competitive and have less environmental impact.
  (c) Industry Alliance.--The Secretary shall, within 3 months from the 
date of enactment of this section, competitively select an Industry 
Alliance to represent participants who are private, for-profit firms 
which, as a group, are broadly representative of United States solid 
state lighting research, development, infrastructure, and manufacturing 
expertise as a whole.
  (d) Research.--
          (1) The Secretary shall carry out the research activities of 
        the Next Generation Lighting Initiative through competitively 
        awarded grants to researchers, including Industry Alliance 
        participants, national laboratories and institutions of higher 
        education.
          (2) The Secretary shall annually solicit from the Industry 
        Alliance--
                  (A) comments to identify solid-state lighting 
                technology needs;
                  (B) assessment of the progress of the Initiative's 
                research activities; and
                  (C) assistance in annually updating solid-state 
                lighting technology roadmaps.
          (3) The information and roadmaps under (2) shall be available 
        to the public.
  (e) Development, Demonstration, and Commercial Application.--The 
Secretary shall carry out a development, demonstration, and commercial 
application program for the Next Generation Lighting Initiative through 
competitively selected awards. The Secretary may give preference to 
participants of the Industry Alliance selected pursuant to subsection 
(c).
  (f) Cost Sharing.--The Secretary shall require cost sharing according 
to 42 U.S.C. 13542.
  (g) Intellectual Property.--The Secretary may require, in accordance 
with the authorities provided in 35 U.S.C. 202(a)(ii), 42 U.S.C. 2182 
and 42 U.S.C. 5908, that for any new invention from subsection (d)--
          (1) that the Industry Alliance members who are active 
        participants in research, development and demonstration 
        activities related to the advanced solid-state lighting 
        technologies that are the subject of this legislation shall be 
        granted first option to negotiate with the invention owner, at 
        least in the field of solid-state lighting, non-exclusive 
        licenses and royalties on terms that are reasonable under the 
        circumstances;
          (2) that the invention owner must offer to negotiate licenses 
        with the Industry Alliance participants cited in (1), in good 
        faith, for at least 1 year after U.S. patents are issued on any 
        such new invention; and
          (3) such other terms as the Secretary determines are required 
        to promote accelerated commercialization of inventions made 
        under the Initiative.
  (h) National Academy Review.--The Secretary shall enter into an 
arrangement with the National Academy of Sciences to conduct periodic 
reviews of the Next Generation Lighting Initiative.
  (i) Definitions.--As used in this section:
          (1) The term ``advanced solid-state lighting'' means a 
        semiconducting device package and delivery system that produces 
        white light using externally applied voltage.
          (2) The term ``research'' includes research on the 
        technologies, materials and manufacturing processes required 
        for white light emitting diodes.
          (3) The term ``Industry Alliance'' means an entity selected 
        by the Secretary under subsection (c).
          (4) The term ``white light emitting diode'' means a 
        semiconducting package, utilizing either organic or inorganic 
        materials, that produces white light using externally applied 
        voltage.

SEC. 913. NATIONAL BUILDING PERFORMANCE INITIATIVE.

  (a) Interagency Group.--Not later than 90 days after the date of 
enactment of this Act, the Director of the Office of Science and 
Technology Policy shall establish an interagency group to develop, in 
coordination with the advisory committee established under subsection 
(e), a National Building Performance Initiative (in this section 
referred to as the ``Initiative''). The interagency group shall be co-
chaired by appropriate officials of the Department and the Department 
of Commerce, who shall jointly arrange for the provision of necessary 
administrative support to the group.
  (b) Integration of Efforts.--The Initiative shall integrate Federal, 
State, and voluntary private sector efforts to reduce the costs of 
construction, operation, maintenance, and renovation of commercial, 
industrial, institutional, and residential buildings.
  (c) Plan.--Not later than 1 year after the date of enactment of this 
Act, the interagency group shall submit to Congress a plan for carrying 
out the appropriate Federal role in the Initiative. The plan shall 
include--
          (1) research, development, demonstration, and commercial 
        application of systems and materials for new construction and 
        retrofit relating to the building envelope and building system 
        components; and
          (2) the collection, analysis, and dissemination of research 
        results and other pertinent information on enhancing building 
        performance to industry, government entities, and the public.
  (d) Department of Energy Role.--Within the Federal portion of the 
Initiative, the Department shall be the lead agency for all aspects of 
building performance related to use and conservation of energy.
  (e) Advisory Committee.--The Director of the Office of Science and 
Technology Policy shall establish an advisory committee to--
          (1) analyze and provide recommendations on potential private 
        sector roles and participation in the Initiative; and
          (2) review and provide recommendations on the plan described 
        in subsection (c).
  (f) Construction.--Nothing in this section provides any Federal 
agency with new authority to regulate building performance.

SEC. 914. SECONDARY ELECTRIC VEHICLE BATTERY USE PROGRAM.

  (a) Definitions.--For purposes of this section:
          (1) The term ``battery'' means an energy storage device that 
        previously has been used to provide motive power in a vehicle 
        powered in whole or in part by electricity.
          (2) The term ``associated equipment'' means equipment located 
        where the batteries will be used that is necessary to enable 
        the use of the energy stored in the batteries.
  (b) Program.--The Secretary shall establish and conduct a research, 
development, demonstration, and commercial application program for the 
secondary use of batteries. Such program shall be--
          (1) designed to demonstrate the use of batteries in secondary 
        applications, including utility and commercial power storage 
        and power quality;
          (2) structured to evaluate the performance, including useful 
        service life and costs, of such batteries in field operations, 
        and the necessary supporting infrastructure, including reuse 
        and disposal of batteries; and
          (3) coordinated with ongoing secondary battery use programs 
        at the National Laboratories and in industry.
  (c) Solicitation.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall solicit proposals to 
demonstrate the secondary use of batteries and associated equipment and 
supporting infrastructure in geographic locations throughout the United 
States. The Secretary may make additional solicitations for proposals 
if the Secretary determines that such solicitations are necessary to 
carry out this section.
  (d) Selection of Proposals.--
          (1) The Secretary shall, not later than 90 days after the 
        closing date established by the Secretary for receipt of 
        proposals under subsection (c), select up to 5 proposals which 
        may receive financial assistance under this section once the 
        Department is in receipt of appropriated funds.
          (2) In selecting proposals, the Secretary shall consider 
        diversity of battery type, geographic and climatic diversity, 
        and life-cycle environmental effects of the approaches.
          (3) No one project selected under this section shall receive 
        more than 25 percent of the funds authorized for this Program.
          (4) The Secretary shall consider the extent of involvement of 
        State or local government and other persons in each 
        demonstration project to optimize use of federal resources.
          (5) The Secretary may consider such other criteria as the 
        Secretary considers appropriate.
  (e) Conditions.--The Secretary shall require that--
          (1) relevant information be provided to the Department, the 
        users of the batteries, the proposers, and the battery 
        manufacturers; and
          (2) the proposer provide at least 50 percent of the costs 
        associated with the proposal.

SEC. 915. ENERGY EFFICIENCY SCIENCE INITIATIVE.

  (a) Establishment.--The Secretary shall establish an Energy 
Efficiency Science Initiative to be managed by the Assistant Secretary 
in the Department with responsibility for energy conservation under 
section 203(a)(9) of the Department of Energy Organization Act (42 
U.S.C. 7133(a)(9)), in consultation with the Director of the Office of 
Science, for grants to be competitively awarded and subject to peer 
review for research relating to energy efficiency.
  (b) Report.--The Secretary shall submit to the Congress, along with 
the President's annual budget request under section 1105(a) of title 
31, United States Code, a report on the activities of the Energy 
Efficiency Science Initiative, including a description of the process 
used to award the funds and an explanation of how the research relates 
to energy efficiency.

       Subtitle B--Distributed Energy and Electric Energy Systems

SEC. 921. DISTRIBUTED ENERGY AND ELECTRIC ENERGY SYSTEMS.

  (a) In General.--
          (1) The following sums are authorized to be appropriated to 
        the Secretary for distributed energy and electric energy 
        systems activities, including activities authorized under this 
        subtitle:
                  (A) for fiscal year 2004, $190,000,000;
                  (B) for fiscal year 2005, $200,000,000;
                  (C) for fiscal year 2006, $220,000,000;
                  (D) for fiscal year 2007, $240,000,000; and
                  (E) for fiscal year 2008, $260,000,000.
          (2) For the Initiative in subsection 927(e), there are 
        authorized to be appropriated--
                  (A) for fiscal year 2004, $15,000,000;
                  (B) for fiscal year 2005, $20,000,000;
                  (C) for fiscal year 2006, $30,000,000;
                  (D) for fiscal year 2007, $35,000,000; and
                  (E) for fiscal year 2008, $40,000,000.
  (b) Micro-Cogeneration Energy Technology.--From amounts authorized 
under subsection (a), $20,000,000 for each of fiscal years 2004 and 
2005 shall be available for activities under section 924.

SEC. 922. HYBRID DISTRIBUTED POWER SYSTEMS.

  Not later than 1 year after the date of enactment of this Act, the 
Secretary shall develop and transmit to the Congress a strategy for a 
comprehensive research, development, demonstration, and commercial 
application program to develop hybrid distributed power systems that 
combine--
          (1) one or more renewable electric power generation 
        technologies of 10 megawatts or less located near the site of 
        electric energy use; and
          (2) nonintermittent electric power generation technologies 
        suitable for use in a distributed power system.

SEC. 923. HIGH POWER DENSITY INDUSTRY PROGRAM.

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

SEC. 924. MICRO-COGENERATION ENERGY TECHNOLOGY.

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

SEC. 925. DISTRIBUTED ENERGY TECHNOLOGY DEMONSTRATION PROGRAM.

  The Secretary, within the sums authorized under section 921(a)(1), 
may provide financial assistance to coordinating consortia of 
interdisciplinary participants for demonstrations designed to 
accelerate the utilization of distributed energy technologies, such as 
fuel cells, microturbines, reciprocating engines, thermally activated 
technologies, and combined heat and power systems, in highly energy 
intensive commercial applications.

SEC. 926. OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

  (a) Creation of an Office of Electric Transmission and 
Distribution.--Title II of the Department of Energy Organization Act is 
amended by inserting the following after section 217 (42 U.S.C. 7144d):
           ``office of electric transmission and distribution
  ``Sec. 218. (a) There is established within the Department an Office 
of Electric Transmission and Distribution. This Office shall be headed 
by a Director, who shall be appointed by the Secretary. The Director 
shall be compensated at the annual rate prescribed for level IV of the 
Executive Schedule under section 5315 of title 5, United States Code.
  ``(b) The Director shall--
          ``(1) coordinate and develop a comprehensive, multi-year 
        strategy to improve the Nation's electricity transmission and 
        distribution;
          ``(2) ensure that the recommendations of the Secretary's 
        National Transmission Grid Study are implemented;
          ``(3) carry out the research, development, and demonstration 
        functions;
          ``(4) grant authorizations for electricity import and export;
          ``(5) perform other electricity transmission and 
        distribution-related functions assigned by the Secretary; and
          ``(6) develop programs for workforce training in power and 
        transmission engineering.''.
  (b) Conforming Amendments.--
          (1) The table of contents of the Department of Energy Act is 
        amended by inserting after the item relating to section 217 the 
        following new item:

``218. Office of Electric Transmission and Distribution.''.
          (2) Section 5315 of title 5, United States Code, is amended 
        by inserting ``Director, Office of Electric Transmission and 
        Distribution, Department of Energy.'' after ``Inspector 
        General, Department of Energy.''.

SEC. 927. ELECTRIC TRANSMISSION AND DISTRIBUTION PROGRAMS.

  (a) Demonstration Program.--The Secretary, acting through the 
Director of the Office of Electric Transmission and Distribution, shall 
establish a comprehensive research, development, and demonstration 
program to ensure the reliability, efficiency, and environmental 
integrity of electrical transmission and distribution systems. This 
program shall include--
          (1) advanced energy and energy storage technologies, 
        materials, and systems, giving priority to new transmission 
        technologies, including composite conductor materials and other 
        technologies that enhance reliability, operational flexibility, 
        or power-carrying capability;
          (2) advanced grid reliability and efficiency technology 
        development;
          (3) technologies contributing to significant load reductions;
          (4) advanced metering, load management, and control 
        technologies;
          (5) technologies to enhance existing grid components;
          (6) the development and use of high-temperature 
        superconductors to
                  (A) enhance the reliability, operational flexibility, 
                or power-carrying capability of electric transmission 
                or distribution systems; or
                  (B) increase the efficiency of electric energy 
                generation, transmission, distribution, or storage 
                systems;
          (7) integration of power systems, including systems to 
        deliver high-quality electric power, electric power 
        reliability, and combined heat and power;
          (8) supply of electricity to the power grid by small scale, 
        distributed and residential-based power generators;
          (9) the development and use of advanced grid design, 
        operation and planning tools;
          (10) any other infrastructure technologies, as appropriate; 
        and
          (11) technology transfer and education.
  (b) Program Plan.--Not later than 1 year after the date of the 
enactment of this legislation, the Secretary, in consultation with 
other appropriate Federal agencies, shall prepare and transmit to 
Congress a 5-year program plan to guide activities under this section. 
In preparing the program plan, the Secretary shall consult with 
utilities, energy services providers, manufacturers, institutions of 
higher education, other appropriate State and local agencies, 
environmental organizations, professional and technical societies, and 
any other persons the Secretary considers appropriate.
  (c) Implementation.--The Secretary shall consider implementing this 
program using a consortium of industry, university and national 
laboratory participants.
  (d) Report.--Not later than 2 years after the transmittal of the plan 
under subsection (b), the Secretary shall transmit a report to Congress 
describing the progress made under this section and identifying any 
additional resources needed to continue the development and commercial 
application of transmission and distribution infrastructure 
technologies.
  (e) Power Delivery Research Initiative.--The Secretary shall 
establish a research, development and demonstration initiative 
specifically focused on power delivery utilizing components 
incorporating high temperature superconductivity.
          (1) Goals of this Initiative shall be to--
                  (A) establish world-class facilities to develop high 
                temperature superconductivity power applications in 
                partnership with manufacturers and utilities;
                  (B) provide technical leadership for establishing 
                reliability for high temperature superconductivity 
                power applications including suitable modeling and 
                analysis;
                  (C) facilitate commercial transition toward direct 
                current power transmission, storage, and use for high 
                power systems utilizing high temperature 
                superconductivity; and
                  (D) facilitate the integration of very low impedance 
                high temperature superconducting wires and cables in 
                existing electric networks to improve system 
                performance, power flow control and reliability.
          (2) The Initiative shall include--
                  (A) feasibility analysis, planning, research, and 
                design to construct demonstrations of superconducting 
                links in high power, direct current and controllable 
                alternating current transmission systems;
                  (B) public-private partnerships to demonstrate 
                deployment of high temperature superconducting cable 
                into testbeds simulating a realistic transmission grid 
                and under varying transmission conditions, including 
                actual grid insertions; and
                  (C) testbeds developed in cooperation with national 
                laboratories, industries, and universities to 
                demonstrate these technologies, prepare the 
                technologies for commercial introduction, and address 
                cost or performance roadblocks to successful commercial 
                use.
  (g) Transmission and Distribution Grid Planning and Operations 
Initiative.--The Secretary shall establish a research, development and 
demonstration initiative specifically focused on tools needed to plan, 
operate and expand the transmission and distribution grids in the 
presence of competitive market mechanisms for energy, load demand, 
customer response and ancillary services. Goals of this Initiative 
shall be to:
          (1) develop and utilize a geographically distributed Center, 
        consisting of research universities and national laboratories, 
        with expertise and facilities to develop the underlying theory 
        and software for power system application, and to assure 
        commercial development in partnership with software vendors and 
        utilities;
          (2) provide technical leadership in engineering and economic 
        analysis for reliability and efficiency of power systems 
        planning and operations in the presence of competitive markets 
        for electricity;
          (3) model, simulate and experiment with new market mechanisms 
        and operating practices to understand and optimize such new 
        methods before actual use; and
          (4) provide technical support and technology transfer to 
        electric utilities and other participants in the domestic 
        electric industry and marketplace.

                      Subtitle C--Renewable Energy

SEC. 931. RENEWABLE ENERGY.

  (a) In General.--The following sums are authorized to be appropriated 
to the Secretary for renewable energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle:
          (1) for fiscal year 2004, $480,000,000;
          (2) for fiscal year 2005, $550,000,000;
          (3) for fiscal year 2006, $610,000,000;
          (4) for fiscal year 2007, $659,000,000; and
          (5) for fiscal year 2008, $710,000,000.
  (b) Bioenergy.--From the amounts authorized under subsection (a), the 
following sums are authorized to be appropriated to carry out section 
932:
          (1) for fiscal year 2004, $135,425,000;
          (2) for fiscal year 2005, $155,600,000;
          (3) for fiscal year 2006, $167,650,000;
          (4) for fiscal year 2007, $180,000,000; and
          (5) for fiscal year 2008, $192,000,000.
  (c) Biodiesel Engine Testing.--From amounts authorized under 
subsection (a), $5,000,000 is authorized to be appropriated in each of 
fiscal years 2004 and 2008 to carry out section 933.
  (d) Concentrating Solar Power.--From amounts authorized under 
subsection (a), the following sums are authorized to be appropriated to 
carry out section 934:
          (1) for fiscal year 2004, $20,000,000;
          (2) for fiscal year 2005, $40,000,000; and
          (3) for each of fiscal years 2006, 2007 and 2008, 
        $50,000,000.
  (e) Limits on Use of Funds.--
          (1) None of the funds authorized to be appropriated under 
        this section may be used for Renewable Support and 
        Implementation.
          (2) Of the funds authorized under subsection (b), not less 
        than $5,000,000 for each fiscal year shall be made available 
        for grants to Historically Black Colleges and Universities, 
        Tribal Colleges, and Hispanic-Serving Institutions.
  (f) Consultation.--In carrying out this section, the Secretary, in 
consultation with the Secretary of Agriculture, shall demonstrate the 
use of advanced wind power technology, including combined use with coal 
gasification; biomass; geothermal energy systems; and other renewable 
energy technologies to assist in delivering electricity to rural and 
remote locations.

SEC. 932. BIOENERGY PROGRAMS.

  (a) In General.--The Secretary shall conduct a program of research, 
development, demonstration, and commercial application for bioenergy, 
including--
          (1) biopower energy systems;
          (2) biofuels;
          (3) bioproducts;
          (4) integrated biorefineries that may produce biopower, 
        biofuels and bioproducts;
          (5) cross-cutting research and development in feedstocks; and
          (6) economic analysis.
  (b) Biofuels and Bioproducts.--The goals of the biofuels and 
bioproducts programs shall be to develop, in partnership with 
industry--
          (1) advanced biochemical and thermo-chemical conversion 
        technologies capable of making fuels from cellulosic feedstocks 
        that are price-competitive with gasoline or diesel in either 
        internal combustion engines or fuel cell-powered vehicles; and
          (2) advanced biotechnology processes capable of making 
        biofuels and bioproducts with emphasis on development of 
        biorefinery technologies using enzyme-based processing systems.
  (c) Definition.--For purposes of (b), the term ``cellulosic 
feedstock'' means any portion of a crop not normally used in food 
production or any non-food crop grown for the purpose of producing 
biomass feedstock.

SEC. 933. BIODIESEL ENGINE TESTING PROGRAM.

  (a) In General.--Not later that 180 days after enactment of this Act, 
the Secretary shall initiate a partnership with diesel engine, diesel 
fuel injection system, and diesel vehicle manufacturers and diesel and 
biodiesel fuel providers to include biodiesel testing in advanced 
diesel engine and fuel system technology.
  (b) Scope.--The study shall provide for testing to determine the 
impact of biodiesel on current and future emission control 
technologies, with emphasis on--
          (1) the impact of biodiesel on emissions warranty, in-use 
        liability, and anti-tampering provisions;
          (2) the impact of long-term use of biodiesel on engine 
        operations;
          (3) the options for optimizing these technologies for both 
        emissions and performance when switching between biodiesel and 
        diesel fuel; and
          (4) the impact of using biodiesel in these fueling systems 
        and engines when used as a blend with 2006 Environmental 
        Protection Agency-mandated diesel fuel containing a maximum of 
        15-parts-per-million sulfur content.
  (c) Report.--Not later than 2 years after the date of enactment, the 
Secretary shall provide an interim report to Congress on the findings 
of this study, including a comprehensive analysis of impacts from 
biodiesel on engine operation for both existing and expected future 
diesel technologies, and recommendations for ensuring optimal emissions 
reductions and engine performance with biodiesel.
  (d) Definition.--For purposes of this section, the term ``biodiesel'' 
means a diesel fuel substitute produced from non-petroleum renewable 
resources that meets the registration requirements for fuels and fuel 
additives established by the Environmental Protection Agency under 
section 211 of the Clean Air Act (42 U.S.C. 7545) and that meets the 
American Society for Testing and Materials D6751-02a ``Standard 
Specification for Biodiesel Fuel (B100) Blend Stock for Distillate 
Fuels''.

SEC. 934 CONCENTRATING SOLAR POWER RESEARCH PROGRAM.

  (a) In General.--The Secretary shall conduct a program of research 
and development to evaluate the potential of concentrating solar power 
for hydrogen production, including co-generation approaches for both 
hydrogen and electricity. Such program shall take advantage of existing 
facilities to the extent possible and shall include--
          (1) development of optimized technologies that are common to 
        both electricity and hydrogen production;
          (2) evaluation of thermo-chemical cycles for hydrogen 
        production at the temperatures attainable with concentrating 
        solar power;
          (3) evaluation of materials issues for the thermo-chemical 
        cycles in (2);
          (4) system architectures and economics studies; and
          (5) coordination with activities in the Advanced Reactor 
        Hydrogen Co-generation Project on high temperature materials, 
        thermo-chemical cycle and economic issues.
  (b) Assessment.--In carrying out the program under this section, the 
Secretary is directed to assess conflicting guidance on the economic 
potential of concentrating solar power for electricity production 
received from the National Research Council report entitled ``Renewable 
Power Pathways: A Review of the U.S. Department of Energy's Renewable 
Energy Programs'' in 2000 and subsequent DOE-funded reviews of that 
report and provide an assessment of the potential impact of this 
technology before, or concurrent with, submission of the fiscal year 
2006 budget.
  (c) Report.--Not later than 5 years after the date of enactment of 
this section, the Secretary shall provide a report to Congress on the 
economic and technical potential for electricity or hydrogen 
production, with or without co-generation, with concentrating solar 
power, including the economic and technical feasibility of potential 
construction of a pilot demonstration facility suitable for commercial 
production of electricity and/or hydrogen from concentrating solar 
power.

SEC. 935. MISCELLANEOUS PROJECTS.

  The Secretary shall conduct research, development, demonstration, and 
commercial application programs for--
          (1) ocean energy, including wave energy;
          (2) the combined use of renewable energy technologies with 
        one another and with other energy technologies, including the 
        combined use of wind power and coal gasification technologies; 
        and
          (3) renewable energy technologies for cogeneration of 
        hydrogen and electricity.

                       Subtitle D--Nuclear Energy

SEC. 941. NUCLEAR ENERGY.

  (a) Core Programs.--The following sums are authorized to be 
appropriated to the Secretary for nuclear energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle, other than those described 
in subsection (b):
          (1) for fiscal year 2004, $273,000,000;
          (2) for fiscal year 2005, $305,000,000;
          (3) for fiscal year 2006, $330,000,000;
          (4) for fiscal year 2007, $355,000,000; and
          (5) for fiscal year 2008, $495,000,000.
  (b) Nuclear Infrastructure Support.--The following sums are 
authorized to be appropriated to the Secretary for activities under 
section 942(f):
          (1) for fiscal year 2004, $125,000,000;
          (2) for fiscal year 2005, $130,000,000;
          (3) for fiscal year 2006, $135,000,000;
          (4) for fiscal year 2007, $140,000,000; and
          (5) for fiscal year 2008, $145,000,000.
  (c) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) For activities under section 943--
                  (A) for fiscal year 2004, $140,000,000;
                  (B) for fiscal year 2005, $145,000,000;
                  (C) for fiscal year 2006, $150,000,000;
                  (D) for fiscal year 2007, $155,000,000; and
                  (E) for fiscal year 2008, $275,000,000.
          (2) For activities under section 944--
                  (A) for fiscal year 2004, $33,000,000;
                  (B) for fiscal year 2005, $37,900,000;
                  (C) for fiscal year 2006, $43,600,000;
                  (D) for fiscal year 2007, $50,100,000; and
                  (E) for fiscal year 2008, $56,000,000.
          (3) For activities under section 946, for each of fiscal 
        years 2004 through 2008, $6,000,000.
  (d) None of the funds authorized under this section may be used for 
decommissioning the Fast Flux Test Facility.

SEC. 942. NUCLEAR ENERGY RESEARCH PROGRAMS.

  (a) Nuclear Energy Research Initiative.--The Secretary shall carry 
out a Nuclear Energy Research Initiative for research and development 
related to nuclear energy.
  (b) Nuclear Energy Plant Optimization Program.--The Secretary shall 
carry out a Nuclear Energy Plant Optimization Program to support 
research and development activities addressing reliability, 
availability, productivity, component aging, safety and security of 
existing nuclear power plants.
  (c) Nuclear Power 2010 Program.--The Secretary shall carry out a 
Nuclear Power 2010 Program, consistent with recommendations in the 
October 2001 report entitled ``A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010'' issued by the Nuclear Energy 
Research Advisory Committee of the Department. The Program shall 
include--
          (1) utilization of the expertise and capabilities of 
        industry, universities, and National Laboratories in evaluation 
        of advanced nuclear fuel cycles and fuels testing;
          (2) consideration of a variety of reactor designs suitable 
        for both developed and developing nations;
          (3) participation of international collaborators in research, 
        development, and design efforts as appropriate; and
          (4) encouragement for university and industry participation.
  (d) Generation IV Nuclear Energy Systems Initiative.--The Secretary 
shall carry out a Generation IV Nuclear Energy Systems Initiative to 
develop an overall technology plan and to support research and 
development necessary to make an informed technical decision about the 
most promising candidates for eventual commercial application. The 
Initiative shall examine advanced proliferation-resistant and passively 
safe reactor designs, including designs that--
          (1) are economically competitive with other electric power 
        generation plants;
          (2) have higher efficiency, lower cost, and improved safety 
        compared to reactors in operation on the date of enactment of 
        this Act;
          (3) use fuels that are proliferation resistant and have 
        substantially reduced production of high-level waste per unit 
        of output; and
          (4) use improved instrumentation.
  (e) Reactor Production of Hydrogen.--The Secretary shall carry out 
research to examine designs for high-temperature reactors capable of 
producing large-scale quantities of hydrogen using thermo-chemical 
processes.
  (f) Nuclear Infrastructure Support.--The Secretary shall develop and 
implement a strategy for the facilities of the Office of Nuclear 
Energy, Science, and Technology and shall transmit a report containing 
the strategy along with the President's budget request to the Congress 
for fiscal year 2006. Such strategy shall provide a cost-effective 
means for--
          (1) maintaining existing facilities and infrastructure, as 
        needed;
          (2) closing unneeded facilities;
          (3) making facility upgrades and modifications; and
          (4) building new facilities.

SEC. 943. ADVANCED FUEL CYCLE INITIATIVE.

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

SEC. 944. UNIVERSITY NUCLEAR SCIENCE AND ENGINEERING SUPPORT.

  (a) Establishment.--The Secretary shall support a program to invest 
in human resources and infrastructure in the nuclear sciences and 
engineering and related fields (including health physics and nuclear 
and radiochemistry), consistent with departmental missions related to 
civilian nuclear research and development.
  (b) Duties.--In carrying out the program under this section, the 
Secretary shall establish fellowship and faculty assistance programs, 
as well as provide support for fundamental research and encourage 
collaborative research among industry, national laboratories, and 
universities through the Nuclear Energy Research Initiative. The 
Secretary is encouraged to support activities addressing the entire 
fuel cycle through involvement of both the Offices of Nuclear Energy, 
Science and Technology and Civilian Radioactive Waste Management. The 
Secretary shall support communication and outreach related to nuclear 
science, engineering and nuclear waste management.
  (c) Maintaining University Research and Training Reactors and 
Associated Infrastructure.--Activities under this section may include--
          (1) converting research reactors currently using high-
        enrichment fuels to low-enrichment fuels, upgrading operational 
        instrumentation, and sharing of reactors among institutions of 
        higher education;
          (2) providing technical assistance, in collaboration with the 
        United States nuclear industry, in relicensing and upgrading 
        training reactors as part of a student training program; and
          (3) providing funding for reactor improvements as part of a 
        focused effort that emphasizes research, training, and 
        education.
  (d) University-National Laboratory Interactions.--The Secretary shall 
develop sabbatical fellowship and visiting scientist programs to 
encourage sharing of personnel between national laboratories and 
universities.
  (e) Operating and Maintenance Costs.--Funding for a research project 
provided under this section may be used to offset a portion of the 
operating and maintenance costs of a research reactor at an institution 
of higher education used in the research project.

SEC. 945. SECURITY OF NUCLEAR FACILITIES.

  The Secretary, through the Director of the Office of Nuclear Energy, 
Science and Technology shall conduct a research and development program 
on cost-effective technologies for increasing the safety of nuclear 
facilities from natural phenomena and the security of nuclear 
facilities from deliberate attacks.

SEC. 946. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE SOURCES.

  (a) Survey.--Not later than August 1, 2004, the Secretary shall 
provide to the Congress results of a survey of industrial applications 
of large radioactive sources. The survey shall--
          (1) consider well-logging sources as one class of industrial 
        sources;
          (2) include information on current domestic and international 
        Department, Department of Defense, State Department and 
        commercial programs to manage and dispose of radioactive 
        sources; and
          (3) discuss available disposal options for currently deployed 
        or future sources and, if deficiencies are noted for either 
        deployed or future sources, recommend legislative options that 
        Congress may consider to remedy identified deficiencies.
  (b) Plan.--In conjunction with the survey in subsection (a), the 
Secretary shall establish a research and development program to develop 
alternatives to such sources that reduce safety, environmental, or 
proliferation risks to either workers using the sources or the public. 
Miniaturized particle accelerators for well-logging or other industrial 
applications and portable accelerators for production of short-lived 
radioactive materials at an industrial site shall be considered as part 
of the research and development efforts. Details of the program plan 
shall be provided to the Congress by August 1, 2004.

                       Subtitle E--Fossil Energy

SEC. 951. FOSSIL ENERGY.

  (a) In General.--The following sums are authorized to be appropriated 
to the Secretary for fossil energy research, development, 
demonstration, and commercial application activities, including 
activities authorized under this subtitle:
          (1) for fiscal year 2004, $523,000,000;
          (2) for fiscal year 2005, $542,000,000;
          (3) for fiscal year 2006, $558,000,000;
          (4) for fiscal year 2007, $585,000,000; and
          (5) for fiscal year 2008, $600,000,000.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) For activities under section 952(b)(2), $28,000,000 for 
        each of the fiscal years 2004 through 2008.
          (2) For activities under section 953--
                  (A) for fiscal year 2004, $12,000,000;
                  (B) for fiscal year 2005, $15,000,000; and
                  (C) for each of fiscal years 2006 through 2008, 
                $20,000,000.
          (3) For activities under section 954, to remain available 
        until expended--
                  (A) for fiscal year 2004, $200,000,000;
                  (B) for fiscal year 2005, $210,000,000; and
                  (C) for fiscal year 2006, $220,500,000.
          (4) For the Office of Arctic Energy under section 3197 of the 
        Floyd D. Spence National Defense Authorization Act for Fiscal 
        Year 2001 (Public Law 106-398), $25,000,000 for each of fiscal 
        years 2004 through 2008.
  (c) Extended Authorization.--There are authorized to be appropriated 
to the Secretary for the Office of Arctic Energy under section 3197 of 
the Floyd D. Spence National Defense Authorization Act for Fiscal Year 
2001 (Public Law 106-398), $25,000,000 for each of fiscal years 2009 
through 2012.
  (d) Limits on Use of Funds.--
          (1) None of the funds authorized under this section may be 
        used for Fossil Energy Environmental Restoration or Import/
        Export Authorization.
          (2) Of the funds authorized under subsection (b)(2), not less 
        than 20 percent of the funds appropriated for each fiscal year 
        shall be dedicated to research and development carried out at 
        institutions of higher education.

SEC. 952. OIL AND GAS RESEARCH PROGRAMS.

  (a)  Oil and Gas Research.--The Secretary shall conduct a program of 
research, development, demonstration, and commercial application on oil 
and gas, including--
          (1) exploration and production;
          (2) gas hydrates;
          (3) reservoir life and extension;
          (4) transportation and distribution infrastructure;
          (5) ultraclean fuels;
          (6) heavy oil and oil shale; and
          (7) related environmental research.
  (b) Fuel Cells.--
          (1) The Secretary shall conduct a program of research, 
        development, demonstration, and commercial application on fuel 
        cells for low-cost, high-efficiency, fuel-flexible, modular 
        power systems.
          (2) The demonstrations shall include fuel cell proton 
        exchange membrane technology for commercial, residential, and 
        transportation applications, and distributed generation 
        systems, utilizing improved manufacturing production and 
        processes.
  (c) Natural Gas and Oil Deposits Report.--Not later than 2 years 
after the date of the enactment of this Act, and every 2 years 
thereafter, the Secretary of the Interior, in consultation with other 
appropriate Federal agencies, shall transmit a report to the Congress 
of the latest estimates of natural gas and oil reserves, reserves 
growth, and undiscovered resources in Federal and State waters off the 
coast of Louisiana and Texas.
  (d) Integrated Clean Power and Energy Research.--
          (1) The Secretary shall establish a national center or 
        consortium of excellence in clean energy and power generation, 
        utilizing the resources of the existing Clean Power and Energy 
        Research Consortium, to address the nation's critical 
        dependence on energy and the need to reduce emissions.
          (2) The center or consortium will conduct a program of 
        research, development, demonstration and commercial application 
        on integrating the following six focus areas:
                  (A) efficiency and reliability of gas turbines for 
                power generation;
                  (B) reduction in emissions from power generation;
                  (C) promotion of energy conservation issues;
                  (D) effectively utilizing alternative fuels and 
                renewable energy;
                  (E) development of advanced materials technology for 
                oil and gas exploration and utilization in harsh 
                environments; and
                  (F) education on energy and power generation issues.

SEC. 953. RESEARCH AND DEVELOPMENT FOR COAL MINING TECHNOLOGIES.

  (a) Establishment.--The Secretary shall carry out a program of 
research and development on coal mining technologies. The Secretary 
shall cooperate with appropriate Federal agencies, coal producers, 
trade associations, equipment manufacturers, institutions of higher 
education with mining engineering departments, and other relevant 
entities.
  (b) Program.--The research and development activities carried out 
under this section shall--
          (1) be guided by the mining research and development 
        priorities identified by the Mining Industry of the Future 
        Program and in the recommendations from relevant reports of the 
        National Academy of Sciences on mining technologies;
          (2) include activities exploring minimization of contaminants 
        in mined coal that contribute to environmental concerns 
        including development and demonstration of electromagnetic wave 
        imaging ahead of mining operations;
          (3) develop and demonstrate coal bed electromagnetic wave 
        imaging and radar techniques for horizontal drilling in order 
        to increase methane recovery efficiency, prevent spoilage of 
        domestic coal reserves and minimize water disposal associated 
        with methane extraction; and
          (4) expand mining research capabilities at institutions of 
        higher education.

SEC. 954. COAL AND RELATED TECHNOLOGIES PROGRAM.

  (a) In General.--In addition to the program authorized under Title II 
of this Act, the Secretary of Energy shall conduct a program of 
technology research, development and demonstration and commercial 
application for coal and power systems, including programs to 
facilitate production and generation of coal-based power through--
          (1) innovations for existing plants;
          (2) integrated gasification combined cycle;
          (3) advanced combustion systems;
          (4) turbines for synthesis gas derived from coal;
          (5) carbon capture and sequestration research and 
        development;
          (6) coal-derived transportation fuels and chemicals;
          (7) solid fuels and feedstocks; and
          (8) advanced coal-related research.
  (b) Cost and Performance Goals.--In carrying out programs authorized 
by this section, the Secretary shall identify cost and performance 
goals for coal-based technologies that would permit the continued cost-
competitive use of coal for electricity generation, as chemical 
feedstocks, and as transportation fuel in 2007, 2015, and the years 
after 2020. In establishing such cost and performance goals, the 
Secretary shall--
          (1) consider activities and studies undertaken to date by 
        industry in cooperation with the Department of Energy in 
        support of such assessment;
          (2) consult with interested entities, including coal 
        producers, industries using coal, organizations to promote coal 
        and advanced coal technologies, environmental organizations and 
        organizations representing workers;
          (3) not later than 120 days after the date of enactment of 
        this section, publish in the Federal Register proposed draft 
        cost and performance goals for public comments; and
          (4) not later than 180 days after the date of enactment of 
        this section and every four years thereafter, submit to 
        Congress a report describing final cost and performance goals 
        for such technologies that includes a list of technical 
        milestones as well as an explanation of how programs authorized 
        in this section will not duplicate the activities authorized 
        under the Clean Coal Power Initiative authorized under Title II 
        of this Act.

SEC. 955. COMPLEX WELL TECHNOLOGY TESTING FACILITY.

  The Secretary of Energy, in coordination with industry leaders in 
extended research drilling technology, shall establish a Complex Well 
Technology Testing Facility at the Rocky Mountain Oilfield Testing 
Center to increase the range of extended drilling technologies.

                          Subtitle F--Science

SEC. 961. SCIENCE.

  (a) In General.--The following sums are authorized to be appropriated 
to the Secretary for research, development, demonstration, and 
commercial application activities of the Office of Science, including 
activities authorized under this subtitle, including the amounts 
authorized under the amendment made by section 967(c)(2)(D), and 
including basic energy sciences, advanced scientific and computing 
research, biological and environmental research, fusion energy 
sciences, high energy physics, nuclear physics, and research analysis 
and infrastructure support:
          (1) for fiscal year 2004, $3,785,000,000;
          (2) for fiscal year 2005, $4,153,000,000;
          (3) for fiscal year 2006, $4,586,000,000;
          (4) for fiscal year 2007, $5,000,000,000; and
          (5) for fiscal year 2008, $5,400,000,000.
  (b) Allocations.--From amounts authorized under subsection (a), the 
following sums are authorized:
          (1) For activities of the Fusion Energy Sciences Program, 
        including activities under section 962--
                  (A) for fiscal year 2004, $335,000,000;
                  (B) for fiscal year 2005, $349,000,000;
                  (C) for fiscal year 2006, $362,000,000;
                  (D) for fiscal year 2007, $377,000,000; and
                  (E) for fiscal year 2008, $393,000,000.
          (2) For the Spallation Neutron Source--
                  (A) for construction in fiscal year 2004, 
                $124,600,000;
                  (B) for construction in fiscal year 2005, 
                $79,800,000;
                  (C) for completion of construction in fiscal year 
                2006, $41,100,000; and
                  (D) for other project costs (including research and 
                development necessary to complete the project, 
                preoperations costs, and capital equipment related to 
                construction), $103,279,000 for the period encompassing 
                fiscal years 2003 through 2006, to remain available 
                until expended through September 30, 2006.
          (3) For Catalysis Research activities under section 965--
                  (A) for fiscal year 2004, $33,000,000;
                  (B) for fiscal year 2005, $35,000,000;
                  (C) for fiscal year 2006, $36,500,000;
                  (D) for fiscal year 2007, $38,200,000; and
                  (E) for fiscal year 2008, $40,100,000.
          (4) For Nanoscale Science and Engineering Research activities 
        under section 966--
                  (A) for fiscal year 2004, $270,000,000;
                  (B) for fiscal year 2005, $290,000,000;
                  (C) for fiscal year 2006, $310,000,000;
                  (D) for fiscal year 2007, $330,000,000; and
                  (E) for fiscal year 2008, $375,000,000.
          (5) For activities under subsection 966(c), from the amounts 
        authorized under subparagraph (4)--
                  (A) for fiscal year 2004, $135,000,000;
                  (B) for fiscal year 2005, $150,000,000;
                  (C) for fiscal year 2006, $120,000,000;
                  (D) for fiscal year 2007, $100,000,000; and
                  (E) for fiscal year 2008, $125,000,000.
          (6) For activities in the Genomes to Life Program under 
        section 968--
                  (A) for fiscal year 2004, $100,000,000;
                  (B) for fiscal year 2005, $170,000,000;
                  (C) for fiscal year 2006, $325,000,000;
                  (D) for fiscal year 2007, $415,000,000; and
                  (E) for fiscal year 2008, $455,000,000.
          (7) For construction and ancillary equipment of the Genomes 
        to Life User Facilities under section 968(d), of funds 
        authorized under (6)--
                  (A) for fiscal year 2004, $16,000,000;
                  (B) for fiscal year 2005, $70,000,000;
                  (C) for fiscal year 2006, $175,000,000;
                  (D) for fiscal year 2007, $215,000,000; and
                  (E) for fiscal year 2008, $205,000,000.
          (8) For activities in the Water Supply Technologies Program 
        under section 970, $30,000,000 for each of fiscal years 2004 
        through 2008.
  (c) In addition to the funds authorized under subsection (b)(1), the 
following sums are authorized for construction costs associated with 
the ITER project under section 962--
          (1) for fiscal year 2006, $55,000,000;
          (2) for fiscal year 2007, $95,000,000; and
          (3) for fiscal year 2008, $115,000,000.

SEC. 962. UNITED STATES PARTICIPATION IN ITER.

  (a) Participation.--
          (1) The Secretary of Energy is authorized to undertake full 
        scientific and technological cooperation in the International 
        Thermonuclear Experimental Reactor project (referred to in this 
        title as ``ITER'').
          (2) In the event that ITER fails to go forward within a 
        reasonable period of time, the Secretary shall send to Congress 
        a plan, including costs and schedules, for implementing the 
        domestic burning plasma experiment known as the Fusion Ignition 
        Research Expriment. Such a plan shall be developed with full 
        consultation with the Fusion Energy Sciences Advisory Committee 
        and be reviewed by the National Research Council.
          (3) It is the intent of Congress that such sums shall be 
        largely for work performed in the United States and that such 
        work contributes the maximum amount possible to the U.S. 
        scientific and technological base.
  (b) Planning.--
          (1) Not later than 180 days of the date of enactment of this 
        act, the Secretary shall present to Congress a plan, with 
        proposed cost estimates, budgets and potential international 
        partners, for the implementation of the goals of this section. 
        The plan shall ensure that--
                  (A) existing fusion research facilities are more 
                fully utilized;
                  (B) fusion science, technology, theory, advanced 
                computation, modeling and simulation are strengthened;
                  (C) new magnetic and inertial fusion research 
                facilities are selected based on scientific innovation, 
                cost effectiveness, and their potential to advance the 
                goal of practical fusion energy at the earliest date 
                possible, and those that are selected are funded at a 
                cost-effective rate;
                  (D) communication of scientific results and methods 
                between the fusion energy science community and the 
                broader scientific and technology communities is 
                improved;
                  (E) inertial confinement fusion facilities are 
                utilized to the extent practicable for the purpose of 
                inertial fusion energy research and development; and
                  (F) attractive alternative inertial and magnetic 
                fusion energy approaches are more fully explored.
          (2) Such plan shall also address the status of and, to the 
        degree possible, costs and schedules for--
                  (A) in coordination with the program in section 969, 
                the design and implementation of international or 
                national facilities for the testing of fusion 
                materials; and
                  (B) the design and implementation of international or 
                national facilities for the testing and development of 
                key fusion technologies.

SEC. 963. SPALLATION NEUTRON SOURCE.

  (a) Definition.--For the purposes of this section, the term 
``Spallation Neutron Source'' means Department Project 9909E 09334, Oak 
Ridge National Laboratory, Oak Ridge, Tennessee.
  (b) Report.--The Secretary shall report on the Spallation Neutron 
Source as part of the Department's annual budget submission, including 
a description of the achievement of milestones, a comparison of actual 
costs to estimated costs, and any changes in estimated project costs or 
schedule.
  (c) Authorization of Appropriations.--The total amount obligated by 
the Department, including prior year appropriations, for the Spallation 
Neutron Source may not exceed--
          (1) $1,192,700,000 for costs of construction;
          (2) $219,000,000 for other project costs; and
          (3) $1,411,700,000 for total project cost.

SEC. 964. SUPPORT FOR SCIENCE AND ENERGY FACILITIES AND INFRASTRUCTURE.

  (a) Facility and Infrastructure Policy.--The Secretary shall develop 
and implement a strategy for facilities and infrastructure supported 
primarily from the Office of Science, the Office of Energy Efficiency 
and Renewable Energy, the Office of Fossil Energy, or the Office of 
Nuclear Energy, Science and Technology Programs at all national 
laboratories and single-purpose research facilities. Such strategy 
shall provide cost-effective means for--
          (1) maintaining existing facilities and infrastructure, as 
        needed;
          (2) closing unneeded facilities;
          (3) making facility modifications; and
          (4) building new facilities.
  (b) Report.--
          (1) The Secretary shall prepare and transmit, along with the 
        President's budget request to the Congress for fiscal year 
        2006, a report containing the strategy developed under 
        subsection (a).
          (2) For each national laboratory and single-purpose research 
        facility, for the facilities primarily used for science and 
        energy research, such report shall contain--
                  (A) the current priority list of proposed facilities 
                and infrastructure projects, including cost and 
                schedule requirements;
                  (B) a current ten-year plan that demonstrates the 
                reconfiguration of its facilities and infrastructure to 
                meet its missions and to address its long-term 
                operational costs and return on investment;
                  (C) the total current budget for all facilities and 
                infrastructure funding; and
                  (D) the current status of each facility and 
                infrastructure project compared to the original 
                baseline cost, schedule, and scope.

SEC. 965. CATALYSIS RESEARCH PROGRAM.

  (A) establishment.--The Secretary, through the Office of Science, 
shall support a program of research and development in catalysis 
science consistent with the Department's statutory authorities related 
to research and development. The program shall include efforts to--
          (1) enable catalyst design using combinations of experimental 
        and mechanistic methodologies coupled with computational 
        modeling of catalytic reactions at the molecular level;
          (2) develop techniques for high throughput synthesis, assay, 
        and characterization at nanometer and sub-nanometer scales in 
        situ under actual operating conditions,
          (3) synthesize catalysts with specific site architectures;
          (4) conduct research on the use of precious metals for 
        catalysis; and
          (5) translate molecular understanding to the design of 
        catalytic compounds.
  (b) Duties of the Office of Science.--In carrying out this program, 
the Director of the Office of Science shall--
          (1) support both individual investigators and 
        multidisciplinary teams of investigators to pioneer new 
        approaches in catalytic design;
          (2) develop, plan, construct, acquire, share, or operate 
        special equipment or facilities for the use of investigators in 
        collaboration with national user facilities such as nanoscience 
        and engineering centers;
          (3) support technology transfer activities to benefit 
        industry and other users of catalysis science and engineering; 
        and
          (4) coordinate research and development activities with 
        industry and other federal agencies.
  (c) Triennial Assessment.--The National Academy of Sciences shall 
review the catalysis program every three years to report on gains made 
in the fundamental science of catalysis and its progress towards 
developing new fuels for energy production and material fabrication 
processes.

SEC. 966. NANOSCALE SCIENCE AND ENGINEERING RESEARCH.

  (a) Establishment.--The Secretary, acting through the Office of 
Science, shall support a program of research, development, 
demonstration, and commercial application in nanoscience and 
nanoengineering. The program shall include efforts to further the 
understanding of the chemistry, physics, materials science, and 
engineering of phenomena on the scale of nanometers and to apply this 
knowledge to the Department's mission areas.
  (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
          (1) support both individual investigators and teams of 
        investigators, including multidisciplinary teams;
          (2) carry out activities under subsection (c);
          (3) support technology transfer activities to benefit 
        industry and other users of nanoscience and nanoengineering; 
        and
          (4) coordinate research and development activities with other 
        DOE programs, industry and other Federal agencies.
  (c) Nanoscience and Nanoengineering Research Centers and Major 
Instrumentation.--
          (1) The Secretary shall carry out projects to develop, plan, 
        construct, acquire, operate, or support special equipment, 
        instrumentation, or facilities for investigators conducting 
        research and development in nanoscience and nanoengineering.
          (2) Projects under paragraph (1) may include the measurement 
        of properties at the scale of nanometers, manipulation at such 
        scales, and the integration of technologies based on 
        nanoscience or nanoengineering into bulk materials or other 
        technologies.
          (3) Facilities under paragraph (1) may include electron 
        microcharacterization facilities, microlithography facilities, 
        scanning probe facilities, and related instrumentation.
          (4) The Secretary shall encourage collaborations among DOE 
        programs, institutions of higher education, laboratories, and 
        industry at facilities under this subsection.

SEC. 967. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY MISSIONS.

  (a) In General.--The Secretary, acting through the Office of Science, 
shall support a program to advance the Nation's computing capability 
across a diverse set of grand challenge, computationally based, science 
problems related to departmental missions.
  (b) Duties of the Office of Science.--In carrying out the program 
under this section, the Office of Science shall--
          (1) advance basic science through computation by developing 
        software to solve grand challenge science problems on new 
        generations of computing platforms in collaboration with other 
        DOE program offices;
          (2) enhance the foundations for scientific computing by 
        developing the basic mathematical and computing systems 
        software needed to take full advantage of the computing 
        capabilities of computers with peak speeds of 100 teraflops or 
        more, some of which may be unique to the scientific problem of 
        interest;
          (3) enhance national collaboratory and networking 
        capabilities by developing software to integrate geographically 
        separated researchers into effective research teams and to 
        facilitate access to and movement and analysis of large 
        (petabyte) data sets;
          (4) maintain a robust scientific computing hardware 
        infrastructure to ensure that the computing resources needed to 
        address departmental missions are available; and
          (5) explore new computing approaches and technologies that 
        promise to advance scientific computing including developments 
        in quantum computing.
  (c) High-Performance Computing Act of 1991 Amendments.--The High-
Performance Computing Act of 1991 is amended--
          (1) in section 4 (15 U.S.C. 5503)--
                  (A) in paragraph (3) by striking ``means'' and 
                inserting ``and `networking and information technology' 
                mean'', and by striking ``(including vector 
                supercomputers and large scale parallel systems)''; and
                  (B) in paragraph (4), by striking ``packet 
                switched''.
          (2) in section 203 (15 U.S.C. 5523)--
                  (A) in subsection (a), by striking all after ``As 
                part of the'' and inserting--
                ``Networking and Information Technology Research and 
                Development Program, the Secretary of Energy shall 
                conduct basic and applied research in networking and 
                information technology, with emphasis on supporting 
                fundamental research in the physical sciences and 
                engineering, and energy applications; providing 
                supercomputer access and advanced communication 
                capabilities and facilities to scientific researchers; 
                and developing tools for distributed scientific 
                collaboration.'';
                  (B) in subsection (b), by striking ``Program'' and 
                inserting ``Networking and Information Technology 
                Research and Development Program''; and
                  (C) by amending subsection (e) to read as follows:
  ``(e) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Energy to carry out the Networking and 
Information Technology Research and Development Program such sums as 
may be necessary for fiscal years 2004 through 2008.''.
  (d) Coordination.--The Secretary shall ensure that the program under 
this section is integrated and consistent with--
          (1) the Accelerated Strategic Computing Initiative of the 
        National Nuclear Security Administration; and
          (2) other national efforts related to advanced scientific 
        computing for science and engineering.

SEC. 968. GENOMES TO LIFE PROGRAM.

  (a) Establishment.--The Secretary shall carry out a program of 
research, development, demonstration, and commercial application, to be 
known as the Genomes to Life Program, in systems biology and proteomics 
consistent with the Department's statutory authorities.
  (b) Planning.--
          (1) The Secretary shall prepare a program plan describing how 
        knowledge and capabilities would be developed by the program 
        and applied to Department missions relating to energy security, 
        environmental cleanup, and national security.
          (2) The program plan will be developed in consultation with 
        other relevant Department technology programs.
          (3) The program plan shall focus science and technology on 
        long-term goals, including--
                  (A) contributing to U.S. independence from foreign 
                energy sources, including production of hydrogen;
                  (B) converting carbon dioxide to organic carbon;
                  (C) advancing environmental cleanup;
                  (D) providing the science and technology for new 
                biotechnology industries; and
                  (E) improving national security and combating 
                bioterrorism.
          (4) The program plan shall establish specific short-term 
        goals and update these goals with the Secretary's annual budget 
        submission.
  (c) Program Execution.--In carrying out the program under this Act, 
the Secretary shall--
          (1) support individual investigators and multidisciplinary 
        teams of investigators;
          (2) subject to subsection (d), develop, plan, construct, 
        acquire, or operate special equipment or facilities for the use 
        of investigators conducting research, development, 
        demonstration, or commercial application in systems biology and 
        proteomics;
          (3) support technology transfer activities to benefit 
        industry and other users of systems biology and proteomics; and
          (4) coordinate activities by the Department with industry and 
        other federal agencies.
  (d) Genomes to Life User Facilities and Ancillary Equipment.--
          (1) Within the funds authorized to be appropriated pursuant 
        to this Act, the amounts specified under section 961(b)(7) 
        shall, subject to appropriations, be available for projects to 
        develop, plan, construct, acquire, or operate special 
        equipment, instrumentation, or facilities for investigators 
        conducting research, development, demonstration, and commercial 
        application in systems biology and proteomics and associated 
        biological disciplines.
          (2) Projects under paragraph (1) may include--
                  (A) the identification and characterization of 
                multiprotein complexes;
                  (B) characterization of gene regulatory networks;
                  (C) characterization of the functional repertoire of 
                complex microbial communities in their natural 
                environments at the molecular level; and
                  (D) development of computational methods and 
                capabilities to advance understanding of complex 
                biological systems and predict their behavior.
          (3) Facilities under paragraph (1) may include facilities, 
        equipment, or instrumentation for--
                  (A) the production and characterization of proteins;
                  (B) whole proteome analysis;
                  (C) characterization and imaging of molecular 
                machines; and
                  (D) analysis and modeling of cellular systems.
          (4) The Secretary shall encourage collaborations among 
        universities, laboratories and industry at facilities under 
        this subsection. All facilities under this subsection shall 
        have a specific mission of technology transfer to other 
        institutions.

SEC. 969. FISSION AND FUSION ENERGY MATERIALS RESEARCH PROGRAM.

  In the President's fiscal year 2006 budget request, the Secretary 
shall establish a research and development program on material science 
issues presented by advanced fission reactors and the Department's 
fusion energy program. The program shall develop a catalog of material 
properties required for these applications, develop theoretical models 
for materials possessing the required properties, benchmark models 
against existing data, and develop a roadmap to guide further research 
and development in this area.

SEC. 970. ENERGY-WATER SUPPLY TECHNOLOGIES PROGRAM.

  (a) Establishment.--There is established within the Office of 
Science, Office of Biological and Environmental Research, the ``Energy-
Water Supply Technologies Program,'' to study energy-related issues 
associated with water resources and municipal waterworks and to study 
water supply issues related to energy production.
  (b) Definitions.--
          (1) The term ``Foundation'' means the American Water Works 
        Association Research Foundation.
          (2) The term ``Indian tribe'' has the meaning given the term 
        in section 4 of the Indian Self-Determination and Education 
        Assistance Act (25 U.S.C. 450b).
          (3) The term ``Program'' means the Water Supply Technologies 
        Program established by section 970(a).
  (c) Program Areas.--The program shall conduct research and 
development, including--
          (1) arsenic removal under subsection (d);
          (2) desalination research program under subsection (e);
          (3) the water and energy sustainability program under 
        subsection (f); and
          (4) other energy-intensive water supply and treatment 
        technologies and other technologies selected by the Secretary.
  (d) Arsenic Removal Program.--
          (1) As soon as practicable after the date of enactment of 
        this Act, the Secretary shall enter into a contract with the 
        Foundation to utilize the facilities, institutions and 
        relationships established in the ``Consolidated Appropriations 
        Resolution, 2003'' as described in Senate Report 107-220 that 
        will carry out a research program to develop and demonstrate 
        innovative arsenic removal technologies.
          (2) In carrying out the arsenic removal program, the 
        Foundation shall, to the maximum extent practicable, conduct 
        research on means of--
                  (A) reducing energy costs incurred in using arsenic 
                removal technologies;
                  (B) minimizing materials, operating, and maintenance 
                costs incurred in using arsenic removal technologies; 
                and
                  (C) minimizing any quantities of waste (especially 
                hazardous waste) that result from use of arsenic 
                removal technologies.
          (3) The Foundation shall carry out peer-reviewed research and 
        demonstration projects to develop and demonstrate water 
        purification technologies.
          (4) In carrying out the arsenic removal program--
                  (A) demonstration projects will be implemented with 
                municipal water system partners to demonstrate the 
                applicability of innovative arsenic removal 
                technologies in areas with different water chemistries 
                representative of areas across the United States with 
                arsenic levels near or exceeding EPA guidelines; and
                  (B) not less than 40 percent of the funds of the 
                Department used for demonstration projects under the 
                arsenic removal program shall be expended on projects 
                focused on needs of and in partnership with rural 
                communities or Indian tribes.
          (5) The Foundation shall develop evaluations of cost 
        effectiveness of arsenic removal technologies used in the 
        program and an education, training, and technology transfer 
        component for the program.
          (6) The Secretary shall consult with the Administrator of the 
        Environmental Protection Agency to ensure that activities under 
        the arsenic removal program are coordinated with appropriate 
        programs of the Environmental Protection Agency and other 
        federal agencies, state programs and academia.
          (7) Not later than 1 year after the date of commencement of 
        the arsenic removal program, and annually thereafter, the 
        Secretary shall submit to Congress a report on the results of 
        the arsenic removal program.
  (e) Desalination Program.--
          (1) The Secretary, in cooperation with the Commissioner of 
        Reclamation, shall carry out a desalination research program in 
        accordance with the desalination technology progress plan 
        developed in Title II of the Energy and Water Development 
        Appropriations Act, 2002 (115 Stat. 498), and described in 
        Senate Report 107-39 under the heading ``WATER AND RELATED 
        RESOURCES'' in the ``BUREAU OF RECLAMATION'' section.
          (2) The desalination program shall--
                  (A) draw on the national laboratory partnership 
                established with the Bureau of Reclamation to develop 
                the January 2003 national Desalination and Water 
                Purification Technology Roadmap for next-generation 
                desalination technology;
                  (B) focus on research relating to, and development 
                and demonstration of, technologies that are appropriate 
                for use in desalinating brackish groundwater, 
                wastewater and other saline water supplies; disposal of 
                residual brine or salt; and
                  (C) consider the use of renewable energy sources.
          (3) Under the desalination program, funds made available may 
        be used for construction projects, including completion of the 
        National Desalination Research Center for brackish groundwater 
        and ongoing facility operational costs.
          (4) The Secretary and the Commissioner of Reclamation shall 
        jointly establish a steering committee for the desalination 
        program. The steering committee shall be jointly chaired by 1 
        representative from this Program and 1 representative from the 
        Bureau of Reclamation.
  (f) Water and Energy Sustainability Program.--
          (1) The Secretary shall carry out a research program to 
        develop understanding and technologies to assist in ensuring 
        that sufficient quantities of water are available to meet 
        present and future requirements.
          (2) Under this program and in collaboration with other 
        programs within the Department including those within the 
        Offices of Fossil Energy and Energy Efficiency and Renewable 
        Energy, the Secretary of the Interior, Army Corps of Engineers, 
        Environmental Protection Agency, Department of Commerce, 
        Department of Defense, state agencies, non-governmental 
        agencies and academia, the Secretary shall assess the current 
        state of knowledge and program activities concerning--
                  (A) future water resources needed to support energy 
                production within the United States including but not 
                limited to the water needs for hydropower and thermo-
                electric power generation;
                  (B) future energy resources needed to support 
                development of water purification and treatment 
                including desalination and long-distance water 
                conveyance;
                  (C) reuse and treatment of water produced as a by-
                product of oil and gas extraction;
                  (D) use of impaired and non-traditional water 
                supplies for energy production and other uses; and
                  (E) technologies to reduce water use in energy 
                production.
          (3) In addition to the assessments in (2), the Secretary 
        shall--
                  (A) develop a research plan defining the scientific 
                and technology development needs and activities 
                required to support long-term water needs and planning 
                for energy sustainability, use of impaired water for 
                energy production and other uses, and reduction of 
                water use in energy production;
                  (B) carry out the research plan required under (A) 
                including development of numerical models, decision 
                analysis tools, economic analysis tools, databases, 
                planning methodologies and strategies;
                  (C) implement at least three planning demonstration 
                projects using the models, tools and planning 
                approaches developed under subparagraph (B) and assess 
                the viability of these tools at the scale of river 
                basins with at least one demonstration involving an 
                international border; and
                  (D) transfer these tools to other federal agencies, 
                state agencies, non-profit organizations, industry and 
                academia for use in their energy and water 
                sustainability efforts.
          (4) Not later than 1 year after the date of enactment of this 
        Act, the Secretary shall submit to Congress a report on the 
        water and energy sustainability program that describes the 
        research elements described under paragraph (2), and makes 
        recommendations for a management structure that optimizes use 
        of Federal resources and programs.
  (g) Cost Sharing.--
          (1) Research projects under this section shall not require 
        cost-sharing.
          (2) Each demonstration project carried out under the Program 
        shall be carried out on a cost-shared basis, as determined by 
        the Secretary.
          (3) With respect to a demonstration project, the Secretary 
        may accept in-kind contributions, and waive the cost-sharing 
        requirement in appropriate circumstances.

                   Subtitle G--Energy and Environment

SEC. 971. UNITED STATES-MEXICO ENERGY TECHNOLOGY COOPERATION.

  (a) Program.--The Secretary shall establish a research, development, 
demonstration, and commercial application program to be carried out in 
collaboration with entities in Mexico and the United States to promote 
energy efficient, environmentally sound economic development along the 
United States-Mexico border which minimizes public health risks from 
industrial activities in the border region.
  (b) Program Management.--The program under subsection (a) shall be 
managed by the Department of Energy Carlsbad Environmental Management 
Field Office.
  (c) Technology Transfer.--In carrying out projects and activities 
under this section, the Secretary shall assess the applicability of 
technology developed under the Environmental Management Science Program 
of the Department.
  (d) Intellectual Property.--In carrying out this section, the 
Secretary shall comply with the requirements of any agreement entered 
into between the United States and Mexico regarding intellectual 
property protection.
  (e) Authorization of Appropriations.--The following sums are 
authorized to be appropriated to the Secretary to carry out activities 
under this section:
          (1) For each of fiscal years 2004 and 2005, $5,000,000.
          (2) For each of fiscal years 2006, 2007, and 2008, 
        $6,000,000.

SEC. 972. COAL TECHNOLOGY LOAN.

  There are authorized to be appropriated to the Secretary $125,000,000 
to provide a loan to the owner of the experimental plant constructed 
under United States Department of Energy cooperative agreement number 
DE-FC-22-91PC90544 on such terms and conditions as the Secretary 
determines, including interest rates and upfront payments.

                         Subtitle H--Management

SEC. 981. AVAILABILITY OF FUNDS.

  Funds authorized to be appropriated to the Department under this 
title shall remain available until expended.

SEC. 982. COST SHARING.

  (a) Research and Development.--Except as otherwise provided in this 
title, for research and development programs carried out under this 
title, the Secretary shall require a commitment from non-Federal 
sources of at least 20 percent of the cost of the project. Cost sharing 
is not required for research and development of a basic or fundamental 
nature.
  (b) Demonstration and Commercial Application.--Except as otherwise 
provided in this subtitle, the Secretary shall require at least 50 
percent of the costs directly and specifically related to any 
demonstration or commercial application project under this subtitle 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 title.
  (c) Calculation of Amount.--In calculating the amount of the non-
Federal commitment under subsection (a) or (b), the Secretary may 
include personnel, services, equipment, and other resources.

SEC. 983. MERIT REVIEW OF PROPOSALS.

  Awards of funds authorized under this title shall be made only after 
an impartial review of the scientific and technical merit of the 
proposals for such awards has been carried out by or for the 
Department.

SEC. 984. EXTERNAL TECHNICAL REVIEW OF DEPARTMENTAL PROGRAMS.

  (a) National Energy Research and Development Advisory Boards.--
          (1) The Secretary shall establish one or more advisory boards 
        to review Department research, development, demonstration, and 
        commercial application programs in energy efficiency, renewable 
        energy, nuclear energy, and fossil energy.
          (2) The Secretary may designate an existing advisory board 
        within the Department to fulfill the responsibilities of an 
        advisory board under this subsection, and may enter into 
        appropriate arrangements with the National Academy of Sciences 
        to establish such an advisory board.
  (b) Utilization of Existing Committees.--The Secretary shall continue 
to use the scientific program advisory committees chartered under the 
Federal Advisory Committee Act by the Office of Science to oversee 
research and development programs under that Office.
  (c) Membership.--Each advisory board under this section shall consist 
of persons with appropriate expertise representing a diverse range of 
interests.
  (d) Meetings and Purposes.--Each advisory board under this section 
shall meet at least semi-annually to review and advise on the progress 
made by the respective research, development, demonstration, and 
commercial application program or programs. The advisory board shall 
also review the measurable cost and performance-based goals for such 
programs as established under section 902, and the progress on meeting 
such goals.
  (e) Periodic Reviews and Assessments.--The Secretary shall enter into 
appropriate arrangements with the National Academy of Sciences to 
conduct periodic reviews and assessments of the programs authorized by 
this title, the measurable cost and performance-based goals for such 
programs as established under section 902, if any, and the progress on 
meeting such goals. Such reviews and assessments shall be conducted 
every 5 years, or more often as the Secretary considers necessary, and 
the Secretary shall transmit to the Congress reports containing the 
results of all such reviews and assessments.

SEC. 985. IMPROVED COORDINATION OF TECHNOLOGY TRANSFER ACTIVITIES.

  (a) Technology Transfer Coordinator.--The Secretary shall designate a 
Technology Transfer Coordinator to perform oversight of and policy 
development for technology transfer activities at the Department. The 
Technology Transfer Coordinator shall coordinate the activities of the 
Technology Transfer Working Group, shall oversee the expenditure of 
funds allocated to the Technology Transfer Working Group, and shall 
coordinate with each technology partnership ombudsman appointed under 
section 11 of the Technology Transfer Commercialization Act of 2000 (42 
U.S.C. 7261c).
  (b) Technology Transfer Working Group.--The Secretary shall establish 
a Technology Transfer Working Group, which shall consist of 
representatives of the National Laboratories and single-purpose 
research facilities, to--
          (1) coordinate technology transfer activities occurring at 
        National Laboratories and single-purpose research facilities;
          (2) exchange information about technology transfer practices, 
        including alternative approaches to resolution of disputes 
        involving intellectual property rights and other technology 
        transfer matters; and
          (3) develop and disseminate to the public and prospective 
        technology partners information about opportunities and 
        procedures for technology transfer with the Department, 
        including those related to alternative approaches to resolution 
        of disputes involving intellectual property rights and other 
        technology transfer matters.
  (c) Technology Transfer Responsibility.--Nothing in this section 
shall affect the technology transfer responsibilities of Federal 
employees under the Stevenson-Wydler Technology Innovation Act of 1980.

SEC. 986. TECHNOLOGY INFRASTRUCTURE PROGRAM.

  (a) Establishment.--The Secretary shall establish a Technology 
Infrastructure Program in accordance with this section.
  (b) Purpose.--The purpose of the Technology Infrastructure Program 
shall be to improve the ability of National Laboratories and single-
purpose research facilities to support departmental missions by--
          (1) stimulating the development of technology clusters that 
        can support departmental missions at the National Laboratories 
        or single-purpose research facilities;
          (2) improving the ability of National Laboratories and 
        single-purpose research facilities to leverage and benefit from 
        commercial research, technology, products, processes, and 
        services; and
          (3) encouraging the exchange of scientific and technological 
        expertise between National Laboratories or single-purpose 
        research facilities and entities that can support departmental 
        missions at the National Laboratories or single-purpose 
        research facilities, such as institutions of higher education; 
        technology-related business concerns; nonprofit institutions; 
        and agencies of State, tribal, or local governments.
  (c) Projects.--The Secretary shall authorize the Director of each 
National Laboratory or single-purpose research facility to implement 
the Technology Infrastructure Program at such National Laboratory or 
facility through projects that meet the requirements of subsections (d) 
and (e).
  (d) Program Requirements.--Each project funded under this section 
shall meet the following requirements:
          (1) Each project shall include at least one of each of the 
        following entities: a business; an institution of higher 
        education; a nonprofit institution; and an agency of a State, 
        local, or tribal government.
          (2) Not less than 50 percent of the costs of each project 
        funded under this section shall be provided from non-Federal 
        sources. The calculation of costs paid by the non-Federal 
        sources to a project shall include cash, personnel, services, 
        equipment, and other resources expended on the project after 
        start of the project. Independent research and development 
        expenses of Government contractors that qualify for 
        reimbursement under section 3109205 0918(e) of the Federal 
        Acquisition Regulations issued pursuant to section 25(c)(1) of 
        the Office of Federal Procurement Policy Act (41 U.S.C. 
        421(c)(1)) may be credited towards costs paid by non-Federal 
        sources to a project, if the expenses meet the other 
        requirements of this section.
          (3) All projects under this section shall be competitively 
        selected using procedures determined by the Secretary.
          (4) Any participant that receives funds under this section 
        may use generally accepted accounting principles for 
        maintaining accounts, books, and records relating to the 
        project.
          (5) No Federal funds shall be made available under this 
        section for construction or any project for more than 5 years.
  (e) Selection Criteria.--
          (1) The Secretary shall allocate funds under this section 
        only if the Director of the National Laboratory or single-
        purpose research facility managing the project determines that 
        the project is likely to improve the ability of the National 
        Laboratory or single-purpose research facility to achieve 
        technical success in meeting departmental missions.
          (2) The Secretary shall consider the following criteria in 
        selecting a project to receive Federal funds--
                  (A) the potential of the project to promote the 
                development of a commercially sustainable technology 
                cluster following the period of Department investment, 
                which will derive most of the demand for its products 
                or services from the private sector, and which will 
                support departmental missions at the participating 
                National Laboratory or single-purpose research 
                facility;
                  (B) the potential of the project to promote the use 
                of commercial research, technology, products, 
                processes, and services by the participating National 
                Laboratory or single-purpose research facility to 
                achieve its mission or the commercial development of 
                technological innovations made at the participating 
                National Laboratory or single-purpose research 
                facility;
                  (C) the extent to which the project involves a wide 
                variety and number of institutions of higher education, 
                nonprofit institutions, and technology-related business 
                concerns that can support the missions of the 
                participating National Laboratory or single-purpose 
                research facility and that will make substantive 
                contributions to achieving the goals of the project;
                  (D) the extent to which the project focuses on 
                promoting the development of technology-related 
                business concerns that are small businesses or involves 
                such small businesses substantively in the project; and
                  (E) such other criteria as the Secretary determines 
                to be appropriate.
  (f) Allocation.--In allocating funds for projects approved under this 
section, the Secretary shall provide--
          (1) the Federal share of the project costs; and
          (2) additional funds to the National Laboratory or single-
        purpose research facility managing the project to permit the 
        National Laboratory or single-purpose research facility to 
        carry out activities relating to the project, and to coordinate 
        such activities with the project.
  (g) Report to Congress.--Not later than July 1, 2006, the Secretary 
shall report to Congress on whether the Technology Infrastructure 
Program should be continued and, if so, how the program should be 
managed.
  (h) Definitions.--In this section:
          (1) The term ``technology cluster'' means a concentration of 
        technology-related business concerns, institutions of higher 
        education, or nonprofit institutions, that reinforce each 
        other's performance in the areas of technology development 
        through formal or informal relationships.
          (2) The term ``technology-related business concern'' means a 
        for-profit corporation, company, association, firm, 
        partnership, or small business concern that conducts scientific 
        or engineering research; develops new technologies; 
        manufactures products based on new technologies; or performs 
        technological services.
  (i) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary for activities under this section 
$10,000,000 for each of fiscal years 2004, 2005, and 2006.

SEC. 987. SMALL BUSINESS ADVOCACY AND ASSISTANCE.

  (a) Small Business Advocate.--The Secretary shall require the 
Director of each National Laboratory, and may require the Director of a 
single-purpose research facility, to designate a small business 
advocate to--
          (1) increase the participation of small business concerns, 
        including socially and economically disadvantaged small 
        business concerns, in procurement, collaborative research, 
        technology licensing, and technology transfer activities 
        conducted by the National Laboratory or single-purpose research 
        facility;
          (2) report to the Director of the National Laboratory or 
        single-purpose research facility on the actual participation of 
        small business concerns in procurement and collaborative 
        research along with recommendations, if appropriate, on how to 
        improve participation;
          (3) make available to small businesses training, mentoring, 
        and information on how to participate in procurement and 
        collaborative research activities;
          (4) increase the awareness inside the National Laboratory or 
        single-purpose research facility of the capabilities and 
        opportunities presented by small business concerns; and
          (5) establish guidelines for the program under subsection (b) 
        and report on the effectiveness of such program to the Director 
        of the National Laboratory or single-purpose research facility.
  (b) Establishment of Small Business Assistance Program.--The 
Secretary shall require the Director of each National Laboratory, and 
may require the Director of a single-purpose research facility, to 
establish a program to provide small business concerns--
          (1) assistance directed at making them more effective and 
        efficient subcontractors or suppliers to the National 
        Laboratory or single-purpose research facility; or
          (2) general technical assistance, the cost of which shall not 
        exceed $10,000 per instance of assistance, to improve the small 
        business concern's products or services.
  (c) Use of Funds.--None of the funds expended under subsection (b) 
may be used for direct grants to the small business concerns.
  (d) Definitions.--In this section:
          (1) The term ``small business concern'' has the meaning given 
        such term in section 3 of the Small Business Act (15 U.S.C. 
        632).
          (2) The term ``socially and economically disadvantaged small 
        business concerns'' has the meaning given such term in section 
        8(a)(4) of the Small Business Act (15 U.S.C. 637(a)(4)).
  (e) Authorization of Appropriations.--There is authorized to be 
appropriated to the Secretary for activities under this section 
$5,000,000 for each of fiscal years 2004 through 2008.

SEC. 988. MOBILITY OF SCIENTIFIC AND TECHNICAL PERSONNEL.

  Not later than 2 years after the date of enactment of this section, 
the Secretary shall transmit a report to the Congress identifying any 
policies or procedures of a contractor operating a National Laboratory 
or single-purpose research facility that create disincentives to the 
temporary transfer of scientific and technical personnel among the 
contractor-operated National Laboratories or contractor-operated 
single-purpose research facilities and provide suggestions for 
improving inter-laboratory exchange of scientific and technical 
personnel.

SEC. 989. NATIONAL ACADEMY OF SCIENCES REPORT.

  Not later than 90 days after the date of enactment of this Act, the 
Secretary shall enter into an arrangement with the National Academy of 
Sciences for the Academy to--
          (1) conduct a study on--
                  (A) the obstacles to accelerating the research, 
                development, demonstration, and commercial application 
                cycle for energy technology; and
                  (B) the adequacy of Department policies and 
                procedures for, and oversight of, technology transfer-
                related disputes between contractors of the Department 
                and the private sector; and
          (2) report to the Congress on recommendations developed as a 
        result of the study.

SEC. 990. OUTREACH.

  The Secretary shall ensure that each program authorized by this title 
includes an outreach component to provide information, as appropriate, 
to manufacturers, consumers, engineers, architects, builders, energy 
service companies, institutions of higher education, facility planners 
and managers, State and local governments, and other entities.

SEC. 991. COMPETITIVE AWARD OF MANAGEMENT CONTRACTS.

  None of the funds authorized to be appropriated to the Secretary by 
this title may be used to award a management and operating contract for 
a nonmilitary energy laboratory of the Department unless such contract 
is competitively awarded or the Secretary grants, on a case-by-case 
basis, a waiver to allow for such a deviation. The Secretary may not 
delegate the authority to grant such a waiver and shall submit to the 
Congress a report notifying the Congress of the waiver and setting 
forth the reasons for the waiver at least 60 days prior to the date of 
the award of such a contract.

SEC. 992. REPROGRAMMING.

  (a) Distribution Report.--Not later than 60 days after the date of 
the enactment of an Act appropriating amounts authorized under this 
title, the Secretary shall transmit to the appropriate authorizing 
committees of the Congress a report explaining how such amounts will be 
distributed among the authorizations contained in this title.
  (b) Prohibition.--
          (1) No amount identified under subsection (a) shall be 
        reprogrammed if such reprogramming would result in an 
        obligation which changes an individual distribution required to 
        be reported under subsection (a) by more than 5 percent unless 
        the Secretary has transmitted to the appropriate authorizing 
        committees of the Congress a report described in subsection (c) 
        and a period of 30 days has elapsed after such committees 
        receive the report.
          (2) In the computation of the 30-day period described in 
        paragraph (1), there shall be excluded any day on which either 
        House of Congress is not in session because of an adjournment 
        of more than 3 days to a day certain.
  (c) Reprogramming Report.--A report referred to in subsection (b)(1) 
shall contain a full and complete statement of the action proposed to 
be taken and the facts and circumstances relied on in support of the 
proposed action.

SEC. 993. CONSTRUCTION WITH OTHER LAWS.

  Except as otherwise provided in this title, the Secretary shall carry 
out the research, development, demonstration, and commercial 
application programs, projects, and activities authorized by this title 
in accordance with the applicable provisions of the Atomic Energy Act 
of 1954 (42 U.S.C. et seq.), the Federal Nonnuclear Research and 
Development Act of 1974 (42 U.S.C. 5901 et seq.), the Energy Policy Act 
of 1992 (42 U.S.C. 13201 et seq.), the Stevenson-Wydler Technology 
Innovation Act of 1980 (15 U.S.C. 3701 et seq.), chapter 18 of title 
35, United States Code (commonly referred to as the Bayh-Dole Act), and 
any other Act under which the Secretary is authorized to carry out such 
activities.

SEC. 994. IMPROVED COORDINATION AND MANAGEMENT OF CIVILIAN SCIENCE AND 
                    TECHNOLOGY PROGRAMS.

  (a) Effective Top-Level Coordination of Research and Development 
Programs.--Section 202(b) of the Department of Energy Organization Act 
(42 U.S.C. 7132(b)) is amended to read as follows:
  ``(b)(1) There shall be in the Department an Under Secretary for 
Energy and Science, who shall be appointed by the President, by and 
with the advice and consent of the Senate. The Under Secretary shall be 
compensated at the rate provided for at level III of the Executive 
Schedule under section 5314 of title 5, United States Code.
  ``(2) The Under Secretary for Energy and Science shall be appointed 
from among persons who--
          ``(A) have extensive background in scientific or engineering 
        fields; and
          ``(B) are well qualified to manage the civilian research and 
        development programs of the Department of Energy.
  ``(3) The Under Secretary for Energy and Science shall--
          ``(A) serve as the Science and Technology Advisor to the 
        Secretary;
          ``(B) monitor the Department's research and development 
        programs in order to advise the Secretary with respect to any 
        undesirable duplication or gaps in such programs;
          ``(C) advise the Secretary with respect to the well-being and 
        management of the multipurpose laboratories under the 
        jurisdiction of the Department;
          ``(D) advise the Secretary with respect to education and 
        training activities required for effective short- and long-term 
        basic and applied research activities of the Department;
          ``(E) advise the Secretary with respect to grants and other 
        forms of financial assistance required for effective short- and 
        long-term basic and applied research activities of the 
        Department; and
          ``(F) exercise authority and responsibility over Assistant 
        Secretaries carrying out energy research and development and 
        energy technology functions under sections 203 and 209, as well 
        as other elements of the Department assigned by the 
        Secretary.''.
  (b) Reconfiguration of Position of Director of the Office of 
Science.--
          (1) Section 209 of the Department of Energy Organization Act 
        (41 U.S.C. 7139) is amended to read as follows:
                          ``office of science
  ``Sec. 209. (a) There shall be within the Department an Office of 
Science, to be headed by an Assistant Secretary for Science, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall be compensated at the rate provided for level 
IV of the Executive Schedule under section 5315 of title 5, United 
States Code.
  ``(b) The Assistant Secretary for Science shall be in addition to the 
Assistant Secretaries provided for under section 203 of this Act.
  ``(c) It shall be the duty and responsibility of the Assistant 
Secretary for Science to carry out the fundamental science and 
engineering research functions of the Department, including the 
responsibility for policy and management of such research, as well as 
other functions vested in the Secretary which he may assign to the 
Assistant Secretary.''.
          (2) Notwithstanding section 3345(b)(1) of title 5, United 
        States Code, the President may designate the Director of the 
        Office of Science immediately prior to the effective date of 
        this Act to act in the office of the Assistant Secretary of 
        Energy for Science until the office is filled as provided in 
        section 209 of the Department of Energy Organization Act, as 
        amended by paragraph (1). While so acting, such person shall 
        receive compensation at the rate provided by this Act for the 
        office of Assistant Secretary for Science.
  (c) Additional Assistant Secretary Position To Enable Improved 
Management of Nuclear Energy Issues.--
          (1) Section 203(a) of the Department of Energy Organization 
        Act (42 U.S.C. 7133(a)) is amended by striking ``There shall be 
        in the Department six Assistant Secretaries'' and inserting 
        ``Except as provided in section 209, there shall be in the 
        Department seven Assistant Secretaries''.
          (2) It is the sense of the Congress that the leadership for 
        departmental missions in nuclear energy should be at the 
        Assistant Secretary level.
  (d) Technical and Conforming Amendments.--
          (1) Section 202 of the Department of Energy Organization Act 
        (42 U.S.C. 7132) is further amended by adding the following at 
        the end:
  ``(d) There shall be in the Department an Under Secretary, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe, consistent with this section. The Under 
Secretary shall be compensated at the rate provided for level III of 
the Executive Schedule under section 5314 of title 5, United States 
Code.
  ``(e) There shall be in the Department a General Counsel, who shall 
be appointed by the President, by and with the advice and consent of 
the Senate, and who shall perform such functions and duties as the 
Secretary shall prescribe. The General Counsel shall be compensated at 
the rate provided for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.''.
          (2) Section 5314 of title 5, United States Code, is amended 
        by striking ``Under Secretaries of Energy (2)'' and inserting 
        ``Under Secretaries of Energy (3)''.
          (3) Section 5315 of title 5, United States Code, is amended 
        by--
                  (A) striking ``Director, Office of Science, 
                Department of Energy.''; and
                  (B) striking ``Assistant Secretaries of Energy (6)'' 
                and inserting ``Assistant Secretaries of Energy (8)''.
          (4) The table of contents for the Department of Energy 
        Organization Act (42 U.S.C. 7101 note) is amended--
                  (A) by striking ``Section 209'' and inserting ``Sec. 
                209'';
                  (B) by striking ``213.'' and inserting ``Sec. 213.'';
                  (C) by striking ``214.'' and inserting ``Sec. 214.'';
                  (D) by striking ``215.'' and inserting ``Sec. 215.''; 
                and
                  (E) by striking ``216.'' and inserting ``Sec. 216.''.

SEC. 995. EDUCATIONAL PROGRAMS IN SCIENCE AND MATHEMATICS.

  (a) Section 3165a of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381a) is amended by adding at the end:
          ``(14) Support competitive events for students, under 
        supervision of teachers, designed to encourage student interest 
        and knowledge in science and mathematics.''
  (b) Section 3169 of the Department of Energy Science Education 
Enhancement Act (42 U.S.C. 7381e), as redesignated by this Act, is 
amended by inserting before the period: ``; and $40,000,000 for each of 
fiscal years 2004 through 2008.''

SEC. 996. OTHER TRANSACTIONS AUTHORITY.

  Section 646 of the Department of Energy Organization Act (42 U.S.C. 
7256) is amended by adding at the end the following:
  ``(g)(1) In addition to other authorities granted to the Secretary 
under law, the Secretary may enter into other transactions on such 
terms as the Secretary may deem appropriate in furtherance of research, 
development, or demonstration functions vested in the Secretary. Such 
other transactions shall not be subject to the provisions of section 9 
of the Federal Nonnuclear Energy Research and Development Act of 1974 
(42 U.S.C. 5908).
  ``(2)(A) The Secretary shall ensure that--
          ``(i) to the maximum extent the Secretary determines 
        practicable, no transaction entered into under paragraph (1) 
        provides for research, development, or demonstration that 
        duplicates research, development, or demonstration being 
        conducted under existing projects carried out by the 
        Department;
          ``(ii) to the extent the Secretary determines practicable, 
        the funds provided by the Government under a transaction 
        authorized by paragraph (1) do not exceed the total amount 
        provided by other parties to the transaction; and
          ``(iii) to the extent the Secretary determines practicable, 
        competitive, merit-based selection procedures shall be used 
        when entering into transactions under paragraph (1).
  ``(B) A transaction authorized by paragraph (1) may be used for a 
research, development, or demonstration project only if the Secretary 
determines the use of a standard contract, grant, or cooperative 
agreement for the project is not feasible or appropriate.
  ``(3)(A) The Secretary shall protect from disclosure, including 
disclosure under section 552 of title 5, United States Code, for up to 
5 years after the date the information is received by the Secretary--
          ``(i) a proposal, proposal abstract, and supporting documents 
        submitted to the Department in a competitive or noncompetitive 
        process having the potential for resulting in an award to the 
        party submitting the information entering into a transaction 
        under paragraph (1); and
          ``(ii) a business plan and technical information relating to 
        a transaction authorized by paragraph (1) submitted to the 
        Department as confidential business information.
  ``(B) The Secretary may protect from disclosure, for up to 5 years 
after the information was developed, any information developed pursuant 
to a transaction under paragraph (1) which developed information is of 
a character that it would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if obtained from a person 
other than a Federal agency.
  ``(4) Not later than 90 days after the date of enactment of this 
section, the Secretary shall prescribe guidelines for using other 
transactions authorized by the amendment under subsection (a). Such 
guidelines shall be published in the Federal Register for public 
comment under rulemaking procedures of the Department.
  ``(5) The authority of the Secretary under this subsection may be 
delegated only to an officer of the Department who is appointed by the 
President by and with the advice and consent of the Senate and may not 
be delegated to any other person.''.

SEC. 997. REPORT ON RESEARCH AND DEVELOPMENT PROGRAM EVALUATION 
                    METHODOLOGIES.

  Not later than 180 days after the date of enactment of this Act, the 
Secretary shall enter into appropriate arrangements with the National 
Academy of Sciences to investigate and report on the scientific and 
technical merits of any evaluation methodology currently in use or 
proposed for use in relation to the scientific and technical programs 
of the Department by the Secretary or other Federal official. Not later 
than 6 months after receiving the report of the National Academy, the 
Secretary shall submit such report to Congress, along with any other 
views or plans of the Secretary with respect to the future use of such 
evaluation methodology.

                    TITLE X--PERSONNEL AND TRAINING

SEC. 1001. WORKFORCE TRENDS AND TRAINEESHIP GRANTS.

  (a) Workforce Trends.--
          (1) The Secretary of Energy (in this title referred to as the 
        ``Secretary''), in consultation with the Secretary of Labor and 
        utilizing statistical data collected by the Secretary of Labor, 
        shall monitor trends in the workforce of skilled technical 
        personnel supporting energy technology industries, including 
        renewable energy industries, companies developing and 
        commercializing devices to increase energy efficiency, the oil 
        and gas industry, the nuclear power industry, the coal 
        industry, and other industrial sectors as the Secretary may 
        deem appropriate.
          (2) The Secretary shall report to the Congress whenever the 
        Secretary determines that significant national shortfalls of 
        skilled technical personnel in one or more energy industry 
        segments are forecast or have occurred.
  (b) Traineeship Grants for Skilled Technical Personnel.--The 
Secretary, in consultation with the Secretary of Labor, may establish 
grant programs in the appropriate offices of the Department of Energy 
to enhance training of skilled technical personnel for which a 
shortfall is determined under subsection (a).
  (c) Definition.--For purposes of this section, the term ``skilled 
technical personnel'' means journey and apprentice level workers who 
are enrolled in or have completed a State or federally recognized 
apprenticeship program and other skilled workers in energy technology 
industries.
  (d) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$20,000,000 for each of fiscal years 2004 through 2008, to remain 
available until expended.

SEC. 1002. RESEARCH FELLOWSHIPS IN ENERGY RESEARCH.

  (a) Postdoctoral Fellowships.--The Secretary shall establish a 
program of fellowships to encourage outstanding young scientists and 
engineers to pursue postdoctoral research appointments in energy 
research and development at institutions of higher education of their 
choice.
  (b) Distinguished Senior Research Fellowships.--The Secretary shall 
establish a program of fellowships to allow outstanding senior 
researchers in energy research and development and their research 
groups to explore research and development topics of their choosing for 
a fixed period of time. Awards under this program shall be made on the 
basis of past scientific or technical accomplishment and promise for 
continued accomplishment during the period of support, which shall not 
be less than 3 years.
  (c) Authorization of Appropriations.--For the purposes of this 
section, there are authorized to be appropriated to the Secretary 
$40,000,000 for each of fiscal years 2004 through 2008, to remain 
available until expended.

SEC. 1003. TRAINING GUIDELINES FOR ELECTRIC ENERGY INDUSTRY PERSONNEL.

  The Secretary of Labor, in consultation with the Secretary of Energy 
and jointly with the electric industry and recognized employee 
representatives, shall develop model personnel training guidelines to 
support electric system reliability and safety. The training guidelines 
shall, at a minimum--
          (1) include training requirements for workers engaged in the 
        construction, operation, inspection, and maintenance of 
        electric generation, transmission, and distribution, including 
        competency and certification requirements, and assessment 
        requirements that include initial and ongoing evaluation of 
        workers, recertification assessment procedures, and methods for 
        examining or testing the qualification of individuals 
        performing covered tasks; and
          (2) consolidate existing training guidelines on the 
        construction, operation, maintenance, and inspection of 
        electric generation, transmission, and distribution facilities, 
        such as those established by the National Electric Safety Code 
        and other industry consensus standards.

SEC. 1004. NATIONAL CENTER ON ENERGY MANAGEMENT AND BUILDING 
                    TECHNOLOGIES.

  The Secretary shall support the establishment of a National Center on 
Energy Management and Building Technologies, to carry out research, 
education, and training activities to facilitate the improvement of 
energy efficiency and indoor air quality in industrial, commercial, and 
residential buildings. The National Center shall be established by--
          (1) recognized representatives of employees in the heating, 
        ventilation, and air-conditioning industry;
          (2) contractors that install and maintain heating, 
        ventilation, and air-conditioning systems and equipment;
          (3) manufacturers of heating, ventilation, and air-
        conditioning systems and equipment;
          (4) representatives of the advanced building envelope 
        industry, including design, windows, lighting, and insulation 
        industries; and
          (5) other entities as the Secretary may deem appropriate.

SEC. 1005. IMPROVED ACCESS TO ENERGY-RELATED SCIENTIFIC AND TECHNICAL 
                    CAREERS.

  (a) Department of Energy Science Education Programs.--Section 3164 of 
the Department of Energy Science Education Enhancement Act (42 U.S.C. 
7381a) is amended by adding at the end the following:
  ``(c) Programs for Students From Under-Represented Groups.--In 
carrying out a program under subsection (a), the Secretary shall give 
priority to activities that are designed to encourage students from 
under-represented groups to pursue scientific and technical careers.''.
  (b) Partnerships With Historically Black Colleges and Universities, 
Hispanic-Servicing Institutions, and Tribal Colleges.--The Department 
of Energy Science Education Enhancement Act (42 U.S.C. 7381 et seq.) is 
amended--
          (1) by redesignating sections 3167 and 3168 as sections 3168 
        and 3169, respectively; and
          (2) by inserting after section 3166 the following:

``SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND 
                    UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND 
                    TRIBAL COLLEGES.

  ``(a) Definitions.--In this section:
          ``(1) Hispanic-serving institution.--The term `Hispanic-
        serving institution' has the meaning given that term in section 
        502(a) of the Higher Education Act of 1965 (20 U.S.C. 
        1101a(a)).
          ``(2) Historically black college or university.-- The term 
        `historically Black college or university' has the meaning 
        given the term `part B institution' in section 322 of the 
        Higher Education Act of 1965 (20 U.S.C. 1061).
          ``(3) National laboratory.--The term `National Laboratory' 
        has the meaning given that term in section 903(5) of the Energy 
        Policy Act of 2003.
          ``(4) Science facility.--The term `science facility' has the 
        meaning given the term `single-purpose research facility' in 
        section 903(8) of the Energy Policy Act of 2003.
          ``(5) Tribal college.--The term `tribal college' has the 
        meaning given the term `tribally controlled college or 
        university' in section 2(a) of the Tribally Controlled College 
        or University Assistance Act of 1978 (25 U.S.C. 1801(a)).
  ``(b) Education Partnership.--The Secretary shall direct the Director 
of each National Laboratory, and may direct the head of any science 
facility, to increase the participation of historically Black colleges 
or universities, Hispanic-serving institutions, or tribal colleges in 
activities that increase the capacity of the historically Black 
colleges or universities, Hispanic-serving institutions, or tribal 
colleges to train personnel in science or engineering.
  ``(c) Activities.--An activity under subsection (b) may include--
          ``(1) collaborative research;
          ``(2) equipment transfer;
          ``(3) training activities conducted at a National Laboratory 
        or science facility; and
          ``(4) mentoring activities conducted at a National Laboratory 
        or science facility.
  ``(d) Report.--Not later than 2 years after the date of enactment of 
this section, the Secretary shall submit to the Congress a report on 
the activities carried out under this section.''.

SEC. 1006. NATIONAL POWER PLANT OPERATIONS TECHNOLOGY AND EDUCATION 
                    CENTER.

  (a) Establishment.--The Secretary shall support the establishment of 
a National Power Plant Operations Technology and Education Center (in 
this section referred to as the ``Center''), to address the need for 
training and educating certified operators for electric power 
generation plants.
  (b) Role.--The Center shall provide both training and continuing 
education relating to electric power generation plant technologies and 
operations. The Center shall conduct training and education activities 
on site and through Internet-based information technologies that allow 
for learning at remote sites.
  (c) Criteria for Competitive Selection.--The Secretary shall support 
the establishment of the Center at an institution of higher education 
with expertise in power plant technology and operation and with the 
ability to provide on-site as well as Internet-based training.

SEC. 1007. FEDERAL MINE INSPECTORS.

  In light of projected retirements of Federal mine inspectors and the 
need for additional personnel, the Secretary of Labor shall hire, 
train, and deploy such additional skilled Federal mine inspectors as 
necessary to ensure the availability of skilled and experienced 
individuals and to maintain the number of Federal mine inspectors at or 
above the levels authorized by law or established by regulation.

                         TITLE XI--ELECTRICITY

SEC. 1101. DEFINITIONS.

  (a) Electric Utility.--Section 3(22) of the Federal Power Act (16 
U.S.C. 796(22)) is amended to read as follows:
  ``(22) `electric utility' means any person or Federal or State agency 
(including any municipality) that sells electric energy; such term 
includes the Tennessee Valley Authority and each Federal power 
marketing agency;``.
  (b) Transmitting Utility.--Section 3(23) of the Federal Power Act (16 
U.S.C. 796(23)) is amended to read as follows:
  ``(23) `transmitting utility' means an entity, including any entity 
described in section 201(f), that owns or operates facilities used for 
the transmission of electric energy--
          ``(A) in interstate commerce; or
          ``(B) for the sale of electric energy at wholesale;''.
  (c) Additional Definitions.--At the end of section (3) of the Federal 
Power Act, add the following:
  ``(26) `unregulated transmitting utility' means an entity that--
          ``(A) owns or operates facilities used for the transmission 
        of electric energy in interstate commerce, and
          ``(B) is an entity described in section 201(f) or a rural 
        electric cooperative with financing from the Rural Utilities 
        Service.
  ``(27) `distribution utility' means an electric utility that does not 
own or operate transmission facilities or an unregulated transmitting 
utility that provides 90 percent of the electric energy its transmits 
to customers at retail.''
  (d) For the purposes of this title, the term ``the Commission'' means 
the Federal Energy Regulatory Commission.

                        Subtitle A--Reliability

SEC. 1111. ELECTRIC RELIABILITY STANDARDS.

  Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by adding the following:
                         ``electric reliability
  ``SEC. 215. (a) For the purposes of this section:
          ``(1) The term `bulk-power system' means--
                  ``(A) facilities and control systems necessary for 
                operating an interconnected electric energy 
                transmission network (or any portion thereof); and
                  ``(B) electric energy from generation facilities 
                needed to maintain transmission system reliability.
        The term does not include facilities used in the local 
        distribution of electric energy.
          ``(2) The terms `Electric Reliability Organization' and `ERO' 
        mean the organization certified by the Commission under 
        subsection (c), the purpose of which is to establish and 
        enforce reliability standards for the bulk-power system, 
        subject to Commission review.
          ``(3) The term `reliability standard' means a requirement, 
        approved by the Commission under this section, to provide for 
        reliable operation of the bulk-power system. The term includes 
        requirements for the operation of existing bulk-power system 
        components and the design of planned additions or modifications 
        to such components to the extent necessary to provide for 
        reliable operation of the bulk-power system, but the term does 
        not include any requirement to enlarge such components or to 
        construct new transmission capacity or generation capacity.
          ``(4) The term `reliable operation' means operating the 
        components of the bulk-power system within equipment and 
        electric system thermal, voltage, and stability limits so that 
        instability, uncontrolled separation, or cascading failures of 
        such system will not occur as a result of a sudden disturbance 
        or unanticipated failure of system components.
          ``(5) The term `Interconnection' means a geographic area in 
        which the operation of bulk-power system components is 
        synchronized such that the failure of one or more of such 
        components may adversely affect the ability of the operators of 
        other components within the system to maintain reliable 
        operation of the portion of the system within their control.
          ``(6) The term `transmission organization' means an RTO or 
        other transmission organization finally approved by the 
        Commission for the operation of transmission facilities.
          ``(7) The term `regional entity' means an entity having 
        enforcement authority pursuant to subsection (e)(4).
  ``(b) The Commission shall have jurisdiction, within the United 
States, over the ERO certified by the Commission under subsection (c), 
any regional entities, and all users, owners and operators of the bulk-
power system, including the entities described in section 201(f), for 
purposes of approving reliability standards established under this 
section and enforcing compliance with this section. All users, owners 
and operators of the bulk-power system shall comply with reliability 
standards that take effect under this section. The Commission shall 
issue a final rule to implement the requirements of this section not 
later than 180 days after the date of enactment of this section.
  ``(c) Following the issuance of a Commission rule under subsection 
(b), any person may submit an application to the Commission for 
certification as the Electric Reliability Organization. The Commission 
may certify one such ERO if the Commission determines that such ERO--
          ``(1) has the ability to develop and enforce, subject to 
        subsection (d)(2), reliability standards that provide for an 
        adequate level of reliability of the bulk-power system; and
          ``(2) has established rules that--
                  ``(A) assure its independence of the users and owners 
                and operators of the bulk-power system, while assuring 
                fair stakeholder representation in the selection of its 
                directors and balanced decisionmaking in any ERO 
                committee or subordinate organizational structure;
                  ``(B) allocate equitably reasonable dues, fees, and 
                other charges among end users for all activities under 
                this section;
                  ``(C) provide fair and impartial procedures for 
                enforcement of reliability standards through the 
                imposition of penalties in accordance with subsection 
                (e) (including limitations on activities, functions, or 
                operations, or other appropriate sanctions);
                  ``(D) provide for reasonable notice and opportunity 
                for public comment, due process, openness, and balance 
                of interests in developing reliability standards and 
                otherwise exercising its duties; and
                  ``(E) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada and 
                Mexico.
  ``(d)(1) The ERO shall file each reliability standard or modification 
to a reliability standard that it proposes to be made effective under 
this section with the Commission.
  ``(2) The Commission may approve by rule or order a proposed 
reliability standard or modification to a reliability standard if it 
determines that the standard is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest. The 
Commission shall give due weight to the technical expertise of the ERO 
with respect to the content of a proposed standard or modification to a 
reliability standard and to the technical expertise of a regional 
entity organized on an Interconnection-wide basis with respect to a 
reliability standard to be applicable within that Interconnection, but 
shall not defer with respect to the effect of a standard on 
competition. A proposed standard or modification shall take effect upon 
approval by the Commission.
  ``(3) The ERO shall rebuttably presume that a proposal from a 
regional entity organized on an Interconnection-wide basis for a 
reliability standard or modification to a reliability standard to be 
applicable on an Interconnection-wide basis is just, reasonable, and 
not unduly discriminatory or preferential, and in the public interest.
  ``(4) The Commission shall remand to the ERO for further 
consideration a proposed reliability standard or a modification to a 
reliability standard that the Commission disapproves in whole or in 
part.
  ``(5) The Commission, upon its own motion or upon complaint, may 
order the ERO to submit to the Commission a proposed reliability 
standard or a modification to a reliability standard that addresses a 
specific matter if the Commission considers such a new or modified 
reliability standard appropriate to carry out this section.
  ``(6) The final rule adopted under subsection (b) shall include fair 
processes for the identification and timely resolution of any conflict 
between a reliability standard and any function, rule, order, tariff, 
rate schedule, or agreement accepted, approved, or ordered by the 
Commission applicable to a transmission organization. Such transmission 
organization shall continue to comply with such function, rule, order, 
tariff, rate schedule or agreement accepted, approved, or ordered by 
the Commission until--
          ``(A) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
          ``(B) the Commission orders a change to such provision 
        pursuant to section 206 of this part; and
          ``(C) the ordered change becomes effective under this part.
If the Commission determines that a reliability standard needs to be 
changed as a result of such a conflict, it shall order the ERO to 
develop and file with the Commission a modified reliability standard 
under paragraph (4) or (5) of this subsection.
  ``(e)(1) The ERO may impose, subject to paragraph (2), a penalty on a 
user or owner or operator of the bulk-power system for a violation of a 
reliability standard approved by the Commission under subsection (d) if 
the ERO, after notice and an opportunity for a hearing--
          ``(A) finds that the user or owner or operator has violated a 
        reliability standard approved by the Commission under 
        subsection (d); and
          ``(B) files notice and the record of the proceeding with the 
        Commission.
  ``(2) A penalty imposed under paragraph (1) may take effect not 
earlier than the 31st day after the ERO files with the Commission 
notice of the penalty and the record of proceedings. Such penalty shall 
be subject to review by the Commission, on its own motion or upon 
application by the user, owner or operator that is the subject of the 
penalty filed within 30 days after the date such notice is filed with 
the Commission. Application to the Commission for review, or the 
initiation of review by the Commission on its own motion, shall not 
operate as a stay of such penalty unless the Commission otherwise 
orders upon its own motion or upon application by the user, owner or 
operator that is the subject of such penalty. In any proceeding to 
review a penalty imposed under paragraph (1), the Commission, after 
notice and opportunity for hearing (which hearing may consist solely of 
the record before the ERO and opportunity for the presentation of 
supporting reasons to affirm, modify, or set aside the penalty), shall 
by order affirm, set aside, reinstate, or modify the penalty, and, if 
appropriate, remand to the ERO for further proceedings. The Commission 
shall implement expedited procedures for such hearings.
  ``(3) On its own motion or upon complaint, the Commission may order 
compliance with a reliability standard and may impose a penalty against 
a user or owner or operator of the bulk-power system, if the Commission 
finds, after notice and opportunity for a hearing, that the user or 
owner or operator of the bulk-power system has engaged or is about to 
engage in any acts or practices that constitute or will constitute a 
violation of a reliability standard.
  ``(4) The Commission shall establish regulations authorizing the ERO 
to enter into an agreement to delegate authority to a regional entity 
for the purpose of proposing reliability standards to the ERO and 
enforcing reliability standards under paragraph (1) if--
          ``(A) the regional entity is governed by an independent 
        board, a balanced stakeholder board, or a combination 
        independent and balanced stakeholder board;
          ``(B) the regional entity otherwise satisfies the provisions 
        of subsection (c)(1) and (2); and
          ``(C) the agreement promotes effective and efficient 
        administration of bulk-power system reliability. The Commission 
        may modify such delegation. The ERO and the Commission shall 
        rebuttably presume that a proposal for delegation to a regional 
        entity organized on an Interconnection-wide basis promotes 
        effective and efficient administration of bulk-power system 
        reliability and should be approved. Such regulation may provide 
        that the Commission may assign the ERO's authority to enforce 
        reliability standards under paragraph (1) directly to a 
        regional entity consistent with the requirements of this 
        paragraph.
  ``(5) The Commission may take such action as is necessary or 
appropriate against the ERO or a regional entity to ensure compliance 
with a reliability standard or any Commission order affecting the ERO 
or a regional entity.
  ``(6) Any penalty imposed under this section shall bear a reasonable 
relation to the seriousness of the violation and shall take into 
consideration the efforts of such user, owner, or operator to remedy 
the violation in a timely manner.
  ``(f) The ERO shall file with the Commission for approval any 
proposed rule or proposed rule change, accompanied by an explanation of 
its basis and purpose. The Commission, upon its own motion or 
complaint, may propose a change to the rules of the ERO. A proposed 
rule or proposed rule change shall take effect upon a finding by the 
Commission, after notice and opportunity for comment, that the change 
is just, reasonable, not unduly discriminatory or preferential, is in 
the public interest, and satisfies the requirements of subsection (c).
  ``(g) The ERO shall conduct periodic assessments of the reliability 
and adequacy of the bulk-power system in North America.
  ``(h) The President is urged to negotiate international agreements 
with the governments of Canada and Mexico to provide for effective 
compliance with reliability standards and the effectiveness of the ERO 
in the United States and Canada or Mexico.
  ``(i)(1) The ERO shall have authority to develop and enforce 
compliance with reliability standards for only the bulk-power system.
  ``(2) This section does not authorize the ERO or the Commission to 
order the construction of additional generation or transmission 
capacity or to set and enforce compliance with standards for adequacy 
or safety of electric facilities or services.
  ``(3) Nothing in this section shall be construed to preempt any 
authority of any State to take action to ensure the safety, adequacy, 
and reliability of electric service within that State, as long as such 
action is not inconsistent with any reliability standard.
  ``(4) Within 90 days of the application of the ERO or other affected 
party, and after notice and opportunity for comment, the Commission 
shall issue a final order determining whether a State action is 
inconsistent with a reliability standard, taking into consideration any 
recommendation of the ERO.
  ``(5) The Commission, after consultation with the ERO, may stay the 
effectiveness of any State action, pending the Commission's issuance of 
a final order.
  ``(j) The Commission shall establish a regional advisory body on the 
petition of at least two-thirds of the States within a region that have 
more than one-half of their electric load served within the region. A 
regional advisory body shall be composed of one member from each 
participating State in the region, appointed by the Governor of each 
State, and may include representatives of agencies, States, and 
provinces outside the United States. A regional advisory body may 
provide advice to the ERO, a regional entity, or the Commission 
regarding the governance of an existing or proposed regional entity 
within the same region, whether a standard proposed to apply within the 
region is just, reasonable, not unduly discriminatory or preferential, 
and in the public interest, whether fees proposed to be assessed within 
the region are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference to the 
advice of any such regional advisory body if that body is organized on 
an Interconnection-wide basis.
  ``(k) The provisions of this section do not apply to Alaska or 
Hawaii.''.

                      Subtitle B--Regional Markets

SEC. 1121. IMPLEMENTATION DATE FOR PROPOSED RULEMAKING ON STANDARD 
                    MARKET DESIGN.

  The Commission's proposed rulemaking entitled ``Remedying Undue 
Discrimination through Open Access Transmission Service and Standard 
Electricity Market Design'' (Docket No. RM01-12-000) is remanded to the 
Commission for reconsideration. No final rule pursuant to the proposed 
rulemaking, including any rule or order of general applicability within 
the scope of the proposed rulemaking, may be issued before July 1, 
2005. Any final rule issued by the Commission pursuant to the proposed 
rulemaking, including any rule or order of general applicability within 
the scope of the proposed rulemaking, shall be proceeded by a notice of 
proposed rulemaking issued after the date of enactment of this Act and 
an opportunity for public comment.

SEC. 1122. SENSE OF THE CONGRESS ON REGIONAL TRANSMISSION 
                    ORGANIZATIONS.

  It is the sense of Congress that, in order to promote fair, open 
access to electric transmission service, benefit retail consumers, 
facilitate wholesale competition, improve efficiencies in transmission 
grid management, promote grid reliability, remove opportunities for 
unduly discriminatory or preferential transmission practices, and 
provide for the efficient development of transmission infrastructure 
needed to meet the growing demands of competitive wholesale power 
markets, all transmitting utilities in interstate commerce should 
voluntarily become members of independently administered Regional 
Transmission Organizations (``RTO'') that have operational or 
functional control of facilities used for the transmission of electric 
energy in interstate commerce and do not own or control generation 
facilities used to supply electric energy for sale at wholesale.

SEC. 1123. FEDERAL UTILITY PARTICIPATION IN REGIONAL TRANSMISSION 
                    ORGANIZATIONS.

  (a) Definitions.--For purposes of this section:
          (1) The term ``appropriate Federal regulatory authority'' 
        means--
                  (A) with respect to a Federal power marketing agency, 
                the Secretary of Energy, except that the Secretary may 
                designate the Administrator of a Federal power 
                marketing agency to act as the appropriate Federal 
                regulatory authority with respect to the transmission 
                system of that Federal power marketing agency; and
                  (B) with respect to the Tennessee Valley Authority, 
                the Board of Directors of the Tennessee Valley 
                Authority.
  (2) The term ``Federal utility'' means a Federal power marketing 
agency or the Tennessee Valley Authority.
  (3) The term ``transmission system'' means electric transmission 
facilities owned, leased, or contracted for by the United States and 
operated by a Federal utility.
  (b) Transfer.--
          (1) The appropriate Federal regulatory authority is 
        authorized to enter into a contract, agreement or other 
        arrangement transferring control and use of all or part of the 
        Federal utility's transmission system to a Regional 
        Transmission Organization (``RTO''). Such contract, agreement 
        or arrangement shall be voluntary and include--
                  (A) performance standards for operation and use of 
                the transmission system that the head of the Federal 
                utility determines necessary or appropriate, including 
                standards that assure recovery of all the Federal 
                utility's costs and expenses related to the 
                transmission facilities that are the subject of the 
                contract, agreement or other arrangement, consistency 
                with existing contracts and third-party financing 
                arrangements, and consistency with said Federal 
                utility's statutory authorities, obligations, and 
                limitations;
                  (B) provisions for monitoring and oversight by the 
                Federal utility of the RTO fulfillment of the terms and 
                conditions of the contract, agreement or other 
                arrangement, including a provision that may provide for 
                the resolution of disputes through arbitration or other 
                means with the RTO or with other participants, 
                notwithstanding the obligations and limitations of any 
                other law regarding arbitration; and
                  (C) a provision that allows the Federal utility to 
                withdraw from the RTO and terminate the contract, 
                agreement or other arrangement in accordance with its 
                terms.
          (2) Neither this section, actions taken pursuant to it, nor 
        any other transaction of a Federal utility using an RTO shall 
        serve to confer upon the Commission jurisdiction or authority 
        over the Federal utility's electric generation assets, electric 
        capacity or energy that the Federal utility is authorized by 
        law to market, or the Federal utility's power sales activities.
  (c) Existing Statutory and Other Obligations.--
          (1) Any statutory provision requiring or authorizing a 
        Federal utility to transmit electric power, or to construct, 
        operate or maintain its transmission system shall not be 
        construed to prohibit a transfer of control and use of its 
        transmission system pursuant to, and subject to all 
        requirements of subsection (b).
          (2) This subsection shall not be construed to--
                  (A) suspend, or exempt any Federal utility from any 
                provision of existing Federal law, including but not 
                limited to any requirement or direction relating to the 
                use of the Federal utility's transmission system, 
                environmental protection, fish and wildlife protection, 
                flood control, navigation, water delivery, or 
                recreation; or
                  (B) authorize abrogation of any contract or treaty 
                obligation.

SEC. 1124. REGIONAL CONSIDERATION OF COMPETITIVE WHOLESALE MARKETS.

  (a) State Regulatory Commissions.--Not later than 90 days after the 
date of enactment of this Act, the Commission shall convene regional 
discussions with State regulatory commissions, as defined in section 
3(21) of the Federal Power Act. The regional discussions should address 
whether wholesale electric markets in each region are working 
effectively to provide reliable service to electric consumers in the 
region at the lowest reasonable cost. Priority should be given to 
discussions in regions that do not have, as of the date of enactment of 
this Act, a Regional Transmission Organization ``(RTO''). The regional 
discussions shall consider--
          (1) the need for an RTO or other organizations in the region 
        to provide non-discriminatory transmission access and 
        generation interconnection;
          (2) a process for regional planning of transmission 
        facilities with State regulatory authority participation and 
        for consideration of multi-state projects;
          (3) a means for ensuring that costs for all electric 
        consumers, as defined in section 3(5) of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602(5)), and buyers 
        of wholesale energy or capacity are reasonable and economically 
        efficient;
          (4) a means for ensuring that all electric consumers, as 
        defined in section 3(5) of the Public Utility Regulatory 
        Policies Act of 1978 (16 U.S.C. 2602(5)), within the region 
        maintain their ability to use the existing transmission system 
        without incurring unreasonable additional costs in order to 
        expand the transmission system for new customers;
          (5) whether the integrated transmission and electric power 
        supply system can and should be operated in a manner that 
        schedules and economically prioritizes all available electric 
        generation resources, so as to minimize the costs of electric 
        energy to all consumers (``economic dispatch'') and maintaining 
        system reliability;
          (6) a means to provide transparent price signals to ensure 
        efficient expansion of the electric system and efficiently 
        manage transmission congestion;
          (7) eliminating in a reasonable manner, consistent with 
        applicable State and Federal law, multiple, cumulative charges 
        for transmission service across successive locations within a 
        region (``pancaked rates'');
          (8) resolution of seams issues with neighboring regions and 
        inter-regional coordination;
          (9) a means of providing information electronically to 
        potential users of the transmission system;
          (10) implementation of a market monitor for the region with 
        State regulatory authority and Commission oversight and 
        establishment of rules and procedures that ensure that State 
        regulatory authorities are provided access to market 
        information and that provides for expedited consideration by 
        the Commission of any complaints concerning exercise of market 
        power and the operation of wholesale markets;
          (11) a process by which to phase-in any proposed RTO or other 
        organization designated to provide non-discriminatory 
        transmission access so as to best meet the needs of a region, 
        and, if relevant, shall take into account the special 
        circumstances that may be found in the Western Interconnection 
        related to the existence of transmission congestion, the 
        existence of significant hydroelectric capacity, the 
        participation of unregulated transmitting utilities, and the 
        distances between generation and load; and,
          (12) a timetable to meet the objectives of this section.
  (b) Report.--Not later than 1 year after the date of enactment of 
this Act, the Commission shall report to Congress on the progress made 
in addressing the issues in subsection (a) of this section in 
discussions with the States.
  (c) Savings.--Nothing in this section shall affect any discussions 
between the Commission and State or other retail regulatory authorities 
that are on-going prior to enactment of this Act.

   Subtitle C--Improving Transmission Access and Protecting Service 
                              Obligations

SEC. 1131. SERVICE OBLIGATION SECURITY AND PARITY.

  The Federal Power Act (16 U.S.C. 824e) is amended by adding the 
following:
  ``Sec. 220. (a)(1) The Commission shall exercise its authority under 
this Act to ensure that any load-serving entity that, as of the date of 
enactment of this section--
          ``(A) owns generation facilities, markets the output of 
        federal generation facilities, or holds rights under one or 
        more long-term contracts to purchase electric energy, for the 
        purpose of meeting a service obligation, and
          ``(B) by reason of ownership of transmission facilities, or 
        one or more contracts or service agreements for firm 
        transmission service, holds firm transmission rights for 
        delivery of the output of such generation facilities or such 
        purchased energy to meet such service obligation,
is entitled to use such firm transmission rights, or equivalent 
financial transmission rights, in order to deliver such output or 
purchased energy, or the output of other generating facilities or 
purchased energy to the extent deliverable using such rights, to meet 
its service obligation.
  ``(2) To the extent that all or a portion of the service obligation 
covered by such firm transmission rights is transferred to another 
load-serving entity, the successor load-serving entity shall be 
entitled to use the firm transmission rights associated with the 
transferred service obligation. Subsequent transfers to another load-
serving entity, or back to the original load-serving entity, shall be 
entitled to the same rights.
  ``(3) The Commission shall exercise its authority under this Act in a 
manner that facilitates the planning and expansion of transmission 
facilities to meet the reasonable needs of load-serving entities to 
satisfy their service obligations.
  ``(b) Nothing in this section shall affect any methodology for the 
allocation of transmission rights by a Commission-approved entity that, 
prior to the date of enactment of this section, has been authorized by 
the Commission to allocate transmission rights.
  ``(c) Nothing in this Act shall relieve a load-serving entity from 
any obligation under State or local law to build transmission or 
distribution facilities adequate to meet its service obligations.
  ``(d) Nothing in this section shall provide a basis for abrogating 
any contract or service agreement for firm transmission service or 
rights in effect as of the date of the enactment of this subsection.
  ``(e) For purposes of this section:
          ``(1) The term `distribution utility' means an electric 
        utility that has a service obligation to end-users.
          ``(2) The term `load-serving entity' means a distribution 
        utility or an electric utility (including an entity described 
        in section 201(f) or a rural cooperative) that has a service 
        obligation to end-users or a distribution utility.
          ``(3) The term `service obligation' means a requirement 
        applicable to, or the exercise of authority granted to, an 
        electric utility (including an entity described in section 
        201(f) or a rural cooperative) under Federal, State or local 
        law or under long-term contracts to provide electric service to 
        end-users or to a distribution utility.
  ``(f) Nothing in the section shall apply to an entity located in an 
area referred to in section 212(k)(2)(A).''.

SEC. 1132. OPEN NON-DISCRIMINATORY ACCESS.

  Part II of the Federal Power Act (16 U.S.C. 824 et seq.) is amended 
by inserting after section 211 the following:
          ``open access by unregulated transmitting utilities
  ``Sec. 211A. (a) Subject to section 212(h), the Commission may, by 
rule or order, require an unregulated transmitting utility to provide 
transmission services--
          ``(1) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself; and
          ``(2) on terms and conditions (not relating to rates) that 
        are comparable to those under which such unregulated 
        transmitting utility provides transmission services to itself 
        and that are not unduly discriminatory or preferential.
  ``(b) The Commission shall exempt from any rule or order under this 
subsection any unregulated transmitting utility that--
          ``(1) is a distribution utility that sells no more than 
        4,000,000 megawatt hours of electricity per year; or
          ``(2) does not own or operate any transmission facilities 
        that are necessary for operating an interconnected transmission 
        system (or any portion thereof); or
          ``(3) meets other criteria the Commission determines to be in 
        the public interest.
  ``(c) Whenever the Commission, after a hearing held upon a complaint, 
finds any exemption granted pursuant to subsection (b) adversely 
affects the reliable and efficient operation of an interconnected 
transmission system, it may revoke the exemption.
  ``(d) The rate changing procedures applicable to public utilities 
under subsections (c) and (d) of section 205 are applicable to 
unregulated transmitting utilities for purposes of this section.
  ``(e) In exercising its authority under paragraph (1) of subsection 
(a), the Commission may remand transmission rates to an unregulated 
transmitting utility for review and revision where necessary to meet 
the requirements of subsection (a).
  ``(f) The provision of transmission services under subsection (a) 
does not preclude a request for transmission services under section 
211.
  ``(g) The Commission may not require a State or municipality to take 
action under this section that constitutes a private business use for 
purposes of section 141 of the Internal Revenue Code of 1986 (26 U.S.C. 
141).
  ``(h) Nothing in this Act authorizes the Commission to require an 
unregulated transmitting utility to transfer control or operational 
control of its transmitting facilities to an RTO or any other 
Commission-approved organization designated to provide non-
discriminatory transmission access.''.

SEC. 1133. TRANSMISSION INFRASTRUCTURE INVESTMENT.

  Part II of the Federal Power Act is amended by adding the following:
             ``sustainable transmission networks rulemaking
  ``Sec. 221. Within six months of enactment of this section, the 
Commission shall issue a final rule establishing transmission pricing 
policies applicable to all public utilities and policies for the 
allocation of costs associated with the expansion, modification or 
upgrade of existing interstate transmission facilities and for the 
interconnection of new transmission facilities for utilities and 
facilities which are not included within a Commission approved RTO. 
Consistent with section 205 of this Act, such rule shall, to the 
maximum extent practicable--
          ``(1) promote capital investment in the economically 
        efficient transmission systems;
          ``(2) encourage the construction of transmission and 
        generation facilities in a manner which provides the lowest 
        overall risk and cost to consumers;
          ``(3) encourage improved operation of transmission facilities 
        and deployment of transmission technologies designed to 
        increase capacity and efficiency of existing networks;
          ``(4) ensure that the costs of any transmission expansion or 
        interconnection be allocated in such a way that all users of 
        the affected transmission system bear the appropriate share of 
        costs; and
          ``(5) ensure that parties who pay for facilities necessary 
        for transmission expansion or interconnection receive 
        appropriate compensation for those facilities.''.

Subtitle D--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

SEC. 1141. NET METERING.

  (a) Adoption of Standard.--Section 111(d) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by 
adding at the end the following:
          ``(11) Net metering.--
                  ``(A) Each electric utility shall make available upon 
                request net metering service to any electric consumer 
                that the electric utility serves.
                  ``(B) For purposes of implementing this paragraph, 
                any reference contained in this section to the date of 
                enactment of the Public Utility Regulatory Policies Act 
                of 1978 shall be deemed to be a reference to the date 
                of enactment of this paragraph.
                  ``(C) Notwithstanding subsections (b) and (c) of 
                section 112, each State regulatory authority shall 
                consider and make a determination concerning whether it 
                is appropriate to implement the standard set out in 
                subparagraph (A) not later than 1 year after the date 
                of enactment of this paragraph.''.
  (b) Special Rules for Net Metering.--Section 115 of the Public 
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2625) is further 
amended by adding at the end the following:
  ``(i) Net Metering.--In undertaking the consideration and making the 
determination under section 111 with respect to the standard concerning 
net metering established by section 111(d)(13), the term net metering 
service shall mean a service provided in accordance with the following 
standards:
          ``(1) An electric utility--
                  ``(A) shall charge the owner or operator of an on-
                site generating facility rates and charges that are 
                identical to those that would be charged other electric 
                consumers of the electric utility in the same rate 
                class; and
                  ``(B) shall not charge the owner or operator of an 
                on-site generating facility any additional standby, 
                capacity, interconnection, or other rate or charge.
          ``(2) An electric utility that sells electric energy to the 
        owner or operator of an on-site generating facility shall 
        measure the quantity of electric energy produced by the on-site 
        facility and the quantity of electric energy consumed by the 
        owner or operator of an on-site generating facility during a 
        billing period in accordance with reasonable metering 
        practices.
          ``(3) If the quantity of electric energy sold by the electric 
        utility to an on-site generating facility exceeds the quantity 
        of electric energy supplied by the on-site generating facility 
        to the electric utility during the billing period, the electric 
        utility may bill the owner or operator for the net quantity of 
        electric energy sold, in accordance with reasonable metering 
        practices.
          ``(4) If the quantity of electric energy supplied by the on-
        site generating facility to the electric utility exceeds the 
        quantity of electric energy sold by the electric utility to the 
        on-site generating facility during the billing period--
                  ``(A) the electric utility may bill the owner or 
                operator of the on-site generating facility for the 
                appropriate charges for the billing period in 
                accordance with paragraph (2); and
                  ``(B) the owner or operator of the on-site generating 
                facility shall be credited for the excess kilowatt-
                hours generated during the billing period, with the 
                kilowatt-hour credit appearing on the bill for the 
                following billing period.
          ``(5) An eligible on-site generating facility and net 
        metering system used by an electric consumer shall meet all 
        applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and Electronics 
        Engineers, and Underwriters Laboratories.
          ``(6) The Commission, after consultation with State 
        regulatory authorities and unregulated electric utilities and 
        after notice and opportunity for comment, may adopt, by rule, 
        additional control and testing requirements for on-site 
        generating facilities and net metering systems that the 
        Commission determines are necessary to protect public safety 
        and system reliability.
          ``(7) For purposes of this subsection--
                  ``(A) The term `eligible on-site generating facility' 
                means a facility on the site of a residential electric 
                consumer with a maximum generating capacity of 10 
                kilowatts or less that is fueled by solar energy, wind 
                energy, or fuel cells; or a facility on the site of a 
                commercial electric consumer with a maximum generating 
                capacity of 500 kilowatts or less that is fueled solely 
                by a renewable energy resource, landfill gas, or a high 
                efficiency system.
                  ``(B) The term `renewable energy resource' means 
                solar, wind, biomass, or geothermal energy.
                  ``(C) The term `high efficiency system' means fuel 
                cells or combined heat and power.
                  ``(D) The term `net metering service' means service 
                to an electric consumer under which electric energy 
                generated by that electric consumer from an eligible 
                on-site generating facility and delivered to the local 
                distribution facilities may be used to offset electric 
                energy provided by the electric utility to the electric 
                consumer during the applicable billing period.''.

SEC. 1142. SMART METERING.

  (a) In General.--Section 111(d) of the Public Utilities Regulatory 
Policies Act of 1978 (16 U.S.C. 2621(d)) is amended by adding at the 
end the following:
          ``(12) Time-based metering and communications.--
                  ``(A) Each electric utility shall offer each of its 
                customer classes, and provide individual customers upon 
                customer request, a time-based rate schedule under 
                which the rate charged by the electric utility varies 
                during different time periods and reflects the variance 
                in the costs of generating and purchasing electricity 
                at the wholesale level. The time-based rate schedule 
                shall enable the electric consumer to manage energy use 
                and cost through advanced metering and communications 
                technology.
                  ``(B) The types of time-based rate schedules that may 
                be offered under the schedule referred to in 
                subparagraph (A) include, among others--
                          ``(i) time-of-use pricing whereby electricity 
                        prices are set for a specific time period on an 
                        advance or forward basis, typically not 
                        changing more often than twice a year. Prices 
                        paid for energy consumed during these periods 
                        shall be pre-established and known to consumers 
                        in advance of such consumption, allowing them 
                        to vary their demand and usage in response to 
                        such prices and manage their energy costs by 
                        shifting usage to a lower cost period or 
                        reducing their consumption overall;
                          ``(ii) critical peak pricing whereby time-of-
                        use prices are in effect except for certain 
                        peak days, when prices may reflect the costs of 
                        generating and purchasing electricity at the 
                        wholesale level and when consumers may receive 
                        additional discounts for reducing peak period 
                        energy consumption; and
                          ``(iii) real-time pricing whereby electricity 
                        prices are set for a specific time period on an 
                        advanced or forward basis and may change as 
                        often as hourly.
                  ``(C) Each electric utility subject to subparagraph 
                (A) shall provide each customer requesting a time-based 
                rate with a time-based meter capable of enabling the 
                utility and customer to offer and receive such rate, 
                respectively.
                  ``(D) For purposes of implementing this paragraph, 
                any reference contained in this section to the date of 
                enactment of the Public Utility Regulatory Policies Act 
                of 1978 shall be deemed to be a reference to the date 
                of enactment of this paragraph.
                  ``(E) In a State that permits third-party marketers 
                to sell electric energy to retail electric consumers, 
                such consumers shall be entitled to receive that same 
                time-based metering and communications device and 
                service as a retail electric consumer of the electric 
                utility.
                  ``(F) Notwithstanding subsections (b) and (c) of 
                section 112, each State regulatory authority shall, not 
                later than twelve (12) months after enactment of this 
                paragraph conduct an investigation in accordance with 
                section 115(i) and issue a decision whether it is 
                appropriate to implement the standards set out in 
                subparagraphs (A) and (C).''.
  (b) State Investigation of Demand Response and Time-Based Metering.--
Section 115 of the Public Utilities Regulatory Policies Act of 1978 (16 
U.S.C. 2625) is amended by adding the at the end the following:
  ``(k) Time-Based Metering and Communications.--Each State regulatory 
authority shall conduct an investigation and issue a decision whether 
or not it is appropriate for electric utilities to provide and install 
time-based meters and communications devices for each of their 
customers which enable such customers to participate in time-based 
pricing rate schedules and other demand response programs.''.
  (c) Federal Assistance on Demand Response.--Section 132(a) of the 
Public Utility Regulatory Polices Act of 1978 (16 U.S.C. 2642(a)) is 
amended by striking ``and'' at the end of paragraph (3), striking the 
period at the end of paragraph (4) and inserting ``; and'', and by 
adding the following at the end thereof:
          ``(5) technologies, techniques and rate-making methods 
        related to advanced metering and communications and the use of 
        these technologies, techniques and methods in demand response 
        programs.''.
  (d) Federal Guidance.--Section 132 of the Public Utility Regulatory 
Policies Act of 1978 (16 U.S.C. 2643) is amended by adding the 
following at the end thereof:
  ``(d) Demand Response.--The Secretary shall be responsible for--
          ``(1) educating consumers on the availability, advantages and 
        benefits of advanced metering and communications technologies, 
        including the funding of demonstration or pilot projects;
          ``(2) working with States, utilities, other energy providers 
        and advanced metering and communications experts to identify 
        and address barriers to the adoption of demand response 
        programs; and
          ``(3) not later than 180 days after the date of enactment of 
        the Energy Policy Act of 2003, providing the Congress with a 
        report that identifies and quantifies the national benefits of 
        demand response and makes a recommendation on achieving 
        specific levels of such benefits by January 1, 2005.''.
  (e) Demand Response and Regional Coordination.--
          (1) It is the policy of the United States to encourage States 
        to coordinate, on a regional basis, State energy policies to 
        provide reliable and affordable demand response services to the 
        public.
          (2) The Secretary of Energy shall provide technical 
        assistance to States and regional organizations formed by two 
        or more States to assist them in--
                  (A) identifying the areas with the greatest demand 
                response potential;
                  (B) identifying and resolving problems in 
                transmission and distribution networks, including 
                through the use of demand response; and
                  (C) developing plans and programs to use demand 
                response to respond to peak demand or emergency needs.
          (3) Not later than 1 year after the date of enactment of this 
        Act, the Commission shall prepare and publish an annual report, 
        by appropriate region, that assesses demand response resources, 
        including those available from all consumer classes, and which 
        identifies and reviews--
                  (A) saturation and penetration rate of advanced 
                meters and communications technologies, devices and 
                systems;
                  (B) existing demand response programs and time-based 
                rate programs;
                  (C) the annual resource contribution of demand 
                resources;
                  (D) the potential for demand response as a 
                quantifiable, reliable resource for regional planning 
                purposes; and
                  (E) steps taken to ensure that, in regional 
                transmission planning and operations, demand resources 
                are provided equitable treatment as a quantifiable, 
                reliable resource relative to the resource obligations 
                of any load-serving entity, transmission provider, or 
                transmitting party.
  (f) Federal Encouragement of Demand Response Devices.--It is the 
policy of the United States that time-based pricing and other forms of 
demand response, whereby electricity customers are provided with 
electricity price signals and the ability to benefit by responding to 
them, shall be encouraged and the deployment of such technology and 
devices that enable electricity customers to participate in such 
pricing and demand response systems shall be facilitated.

SEC. 1143. ADOPTION OF ADDITIONAL STANDARDS.

  (a) Adoption of Standards.--Section 113(b) of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623(b)) is amended by 
adding at the end the following:
          ``(6) Each electric utility shall provide distributed 
        generation, combined heat and power, and district heating and 
        cooling systems competitive access to the local distribution 
        grid and competitive pricing of service, and shall use 
        simplified standard contracts for the interconnection of 
        generating facilities that have a power production capacity of 
        250 kilowatts or less.
          ``(7) No electric utility may refuse to interconnect a 
        generating facility with the distribution facilities of the 
        electric utility if the owner or operator of the generating 
        facility complies with technical standards adopted by the State 
        regulatory authority and agrees to pay the costs established by 
        such State regulatory authority.
          ``(8) Each electric utility shall develop a plan to minimize 
        dependence on one fuel source and to ensure that the electric 
        energy it sells to consumers is generated using a diverse range 
        of fuels and technologies, including renewable technologies.
          ``(9) Each electric utility shall develop and implement a 
        ten-year plan to increase the efficiency of its fossil fuel 
        generation.''.
  (b) Time for Adopting Standards.--Section 113 of the Public Utility 
Regulatory Policies Act of 1978 (16 U.S.C. 2623) is further amended by 
adding at the end the following:
  ``(d) Special Rule.--For purposes of implementing paragraphs (6), 
(7), (8), and (9) of subsection (b), 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 subsection.''.

SEC. 1144. TECHNICAL ASSISTANCE.

  Section 132(c) of the Public Utility Regulatory Policies Act of 1978 
(16 U.S.C. 2642(c)) is amended to read as follows:
  ``(c) Technical Assistance for Certain Responsibilities.--The 
Secretary may provide such technical assistance as determined 
appropriate to assist State regulatory authorities and electric 
utilities in carrying out their responsibilities under section 
111(d)(11) and paragraphs (6), (7), (8), and (9) of section 113(b).''.

SEC. 1145. COGENERATION AND SMALL POWER PRODUCTION PURCHASE AND SALE 
                    REQUIREMENTS.

  (a) Termination of Mandatory Purchase and Sale Requirements.--Section 
210 of the Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 
824a-3) is amended by adding at the end the following:
  ``(m) Termination of Mandatory Purchase and Sale Requirements.--
          ``(1) Obligation to purchase.--After the date of enactment of 
        this subsection, no electric utility shall be required to enter 
        into a new contract or obligation to purchase electric energy 
        from a qualifying cogeneration facility or a qualifying small 
        power production facility under this section if the Commission 
        finds that the qualifying cogeneration facility or qualifying 
        small power production facility has access to an independently 
        administered, auction-based day ahead and real time wholesale 
        market for the sale of electric energy.
          ``(2) Obligation to sell.--After the date of enactment of 
        this subsection, no electric utility shall be required to enter 
        into a new contract or obligation to sell electric energy to a 
        qualifying cogeneration facility or a qualifying small power 
        production facility under this section if competing retail 
        electric suppliers are able to provide electric energy to the 
        qualifying cogeneration facility or qualifying small power 
        production facility.
          ``(3) No effect on existing rights and remedies.--Nothing in 
        this subsection affects the rights or remedies of any party 
        under any contract or obligation, in effect on the date of 
        enactment of this subsection, to purchase electric energy or 
        capacity from or to sell electric energy or capacity to a 
        facility under this Act (including the right to recover costs 
        of purchasing electric energy or capacity).
          ``(4) Recovery of costs.--
                  ``(A) Regulation.--The Commission shall promulgate 
                such regulations as are necessary to ensure that an 
                electric utility that purchases electric energy or 
                capacity from a qualifying cogeneration facility or 
                qualifying small power production facility in 
                accordance with any legally enforceable obligation 
                entered into or imposed under this section before the 
                date of enactment of this subsection recovers all 
                prudently incurred costs associated with the purchase.
                  ``(B) Enforcement.--A regulation under subparagraph 
                (A) shall be enforceable in accordance with the 
                provisions of law applicable to enforcement of 
                regulations under the Federal Power Act (16 U.S.C. 791a 
                et seq.).''.
  (b) Elimination of Ownership Limitations.--Section 3 of the Federal 
Power Act (16 U.S.C. 796) is amended--
          (1) by striking paragraph (17)(C) and inserting the 
        following:
                  ``(C) `qualifying small power production facility' 
                means a small power production facility that the 
                Commission determines, by rule, meets such requirements 
                (including requirements respecting minimum size, fuel 
                use, and fuel efficiency) as the Commission may, by 
                rule, prescribe;''; and
          (2) by striking paragraph (18)(B) and inserting the 
        following:
                  ``(B) `qualifying cogeneration facility' means a 
                cogeneration facility that the Commission determines, 
                by rule, meets such requirements (including 
                requirements respecting minimum size, fuel use, and 
                fuel efficiency) as the Commission may, by rule, 
                prescribe;''.

SEC. 1146. RECOVERY OF COSTS.

  (a) Regulation.--To ensure recovery by any electric utility that 
purchases electricity or capacity from a qualifying facility pursuant 
to any legally enforceable obligation entered into or imposed under 
section 210 of the Public Utility Regulatory Policies Act of 1978 (16 
U.S.C. 824a-3) before the date of enactment of this Act of all costs 
associated with the purchases, the Commission shall promulgate and 
enforce such regulations as are required to ensure that no utility 
shall be required directly or indirectly to absorb the costs associated 
with the purchases.
  (b) Treatment.--A regulation under subsection (a) shall be treated as 
a rule enforceable under the Federal Power Act (16 U.S.C. 791a et 
seq.).

Subtitle E--Provisions Regarding the Public Utility Holding Company Act 
                                of 1935

SEC. 1151. DEFINITIONS.

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

SEC. 1152. REPEAL OF THE PUBLIC UTILITY HOLDING COMPANY ACT OF 1935.

  The Public Utility Holding Company Act of 1935 (15 U.S.C. 79a et 
seq.) is repealed, effective 12 months after the date of enactment of 
this Act.

SEC. 1153. FEDERAL ACCESS TO BOOKS AND RECORDS.

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

SEC. 1154. STATE ACCESS TO BOOKS AND RECORDS.

  (a) In General.--Upon the written request of a State commission 
having jurisdiction to regulate a public utility company in a holding 
company system, and subject to such terms and conditions as may be 
necessary and appropriate to safeguard against unwarranted disclosure 
to the public of any trade secrets or sensitive commercial information, 
a holding company or any associate company or affiliate thereof, 
wherever located, shall produce for inspection books, accounts, 
memoranda, and other records that--
          (1) have been identified in reasonable detail in a proceeding 
        before the State commission;
          (2) the State commission determines are relevant to costs 
        incurred by such public utility company; and
          (3) are necessary for the effective discharge of the 
        responsibilities of the State commission with respect to such 
        proceeding.
  (b) Effect on State Law.--Nothing in this section shall preempt 
applicable State law concerning the provision of books, accounts, 
memoranda, or other records, or in any way limit the rights of any 
State to obtain books, accounts, memoranda, or other records, under 
Federal law, contract, or otherwise.
  (c) Court Jurisdiction.--Any United States district court located in 
the State in which the State commission referred to in subsection (a) 
is located shall have jurisdiction to enforce compliance with this 
section.

SEC. 1155. EXEMPTION AUTHORITY.

  (a) Rulemaking.--Not later than 90 days after the date of enactment 
of this title, the Commission shall promulgate a final rule to exempt 
from the requirements of section 203 any person that is a holding 
company, solely with respect to one or more--
          (1) qualifying facilities under the Public Utility Regulatory 
        Policies Act of 1978;
          (2) exempt wholesale generators; or
          (3) foreign utility companies.
  (b) Other Authority.--If, upon application or upon its own motion, 
the Commission finds that the books, accounts, memoranda, and other 
records of any person are not relevant to the jurisdictional rates of a 
public utility company or natural gas company, or if the Commission 
finds that any class of transactions is not relevant to the 
jurisdictional rates of a public utility company, the Commission shall 
exempt such person or transaction from the requirements of section 203.

SEC. 1156. AFFILIATE TRANSACTIONS.

  Nothing in this subtitle shall preclude the Commission or a State 
commission from exercising its jurisdiction under otherwise applicable 
law to determine whether a public utility company, public utility, or 
natural gas company may recover in rates any costs of an activity 
performed by an associate company, or any costs of goods or services 
acquired by such public utility company, public utility, or natural gas 
company from an associate company.

SEC. 1157. APPLICABILITY.

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

SEC. 1158. EFFECT ON OTHER REGULATIONS.

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

SEC. 1159. ENFORCEMENT.

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

SEC. 1160. SAVINGS PROVISIONS.

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

SEC. 1161. IMPLEMENTATION.

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

SEC. 1162. TRANSFER OF RESOURCES.

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

SEC. 1163. EFFECTIVE DATE.

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

SEC. 1164. CONFORMING AMENDMENT TO THE FEDERAL POWER ACT.

  Section 318 of the Federal Power Act (16 U.S.C. 825q) is repealed.

   Subtitle F--Market Transparency, Anti-Manipulation And Enforcement

SEC. 1171. MARKET TRANSPARENCY RULES.

  Part II of the Federal Power Act is amended by adding:
                      ``market transparency rules
  ``Sec. 222. (a) Not later than 180 days after the date of enactment 
of this section, the Commission shall issue rules establishing an 
electronic information system to provide the Commission and the public 
with access to such information as is necessary or appropriate to 
facilitate price transparency and participation in markets subject to 
the Commission's jurisdiction. Such systems shall provide information 
about the availability and market price of wholesale electric energy 
and transmission services to the Commission, State commissions, buyers 
and sellers of wholesale electric energy, users of transmission 
services, and the public. The Commission shall have authority to obtain 
such information from any electric and transmitting utility, including 
any entity described in section 201(f).
  ``(b) The Commission shall exempt from disclosure information it 
determines would, if disclosed, be detrimental to the operation of an 
effective market or jeopardize system security. This section shall not 
apply to an entity described in section 212(k)(2)(B) with respect to 
transactions for the purchase or sale of wholesale electric energy and 
transmission services within the area described in section 
212(k)(2)(A).''.

SEC. 1172. MARKET MANIPULATION.

  Part II of the Federal Power Act is amended by the following:
               ``prohibition on filing false information
  ``Sec. 223. It shall be a violation of this Act for any person or any 
other entity (including entities described in section 201(f)) willfully 
and knowingly to report any information relating to the price of 
electricity sold at wholesale, which information the person or any 
other entity knew to be false at the time of the reporting, to any 
governmental entity with the intent to manipulate the data being 
compiled by such governmental entity.
                  ``prohibition on round trip trading
  ``Sec. 224. (a) It shall be a violation of this Act for any person or 
any other entity (including entities described in section 201(f)) 
willfully and knowingly to enter into any contract or other arrangement 
to execute a `round-trip trade' for the purchase or sale of electric 
energy at wholesale.
  ``(b) For the purposes of this section, the term `round trip trade' 
means a transaction, or combination of transactions, in which a person 
or any other entity--
          ``(1) enters into a contract or other arrangement to purchase 
        from, or sell to, any other person or other entity electric 
        energy at wholesale;
          ``(2) simultaneously with entering into the contract or 
        arrangement described in paragraph (1), arranges a financially 
        offsetting trade with such other person or entity for the same 
        such electric energy, at the same location, price, quantity and 
        terms so that, collectively, the purchase and sale transactions 
        in themselves result in no financial gain or loss; and
          ``(3) enters into the contract or arrangement with the intent 
        to deceptively affect reported revenues, trading volumes, or 
        prices.''.

SEC. 1173. ENFORCEMENT.

  (a) Complaints.--Section 306 of the Federal Power Act (16 U.S.C. 
825e) is amended by--
          (1) inserting ``electric utility (including entities 
        described in section 201(f) and rural cooperative entities),'' 
        after ``Any person,''; and
          (2) inserting ``transmitting utility,'' after ``licensee'' 
        each place it appears.
  (b) Investigations.--Section 307(a) of the Federal Power Act (16 
U.S.C. 825f(a)) is amended by inserting ``or transmitting utility'' 
after ``any person'' in the first sentence.
  (c) Review of Commission Orders.--Section 313(a) of the Federal Power 
Act (16 U.S.C. 8251) is amended by inserting ``electric utility,'' 
after ``Any person,'' in the first sentence.
  (d) Criminal Penalties.--Section 316 of the Federal Power Act (16 
U.S.C. 825o) is amended--
          (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years'';
          (2) in subsection (b), by striking ``$500'' and inserting 
        ``$25,000''; and
          (3) by striking subsection (c).
  (e) Civil Penalties.--Section 316A of the Federal Power Act (16 
U.S.C. 825o-1) is amended--
          (1) in subsections (a) and (b), by striking ``section 211, 
        212, 213, or 214'' each place it appears and inserting ``Part 
        II''; and
          (2) in subsection (b), by striking ``$10,000'' and inserting 
        ``$1,000,000''.
  (f) General Penalties.--Section 21 of the Natural Gas Act (15 U.S.C. 
717t) is amended--
          (1) in subsection (a), by striking ``$5,000'' and inserting 
        ``$1,000,000'', and by striking ``two years'' and inserting 
        ``five years''; and
          (2) in subsection (b), by striking ``$500'' and inserting 
        ``$50,000''.

SEC. 1174. REFUND EFFECTIVE DATE.

  Section 206(b) of the Federal Power Act (16 U.S.C. 824e(b)) is 
amended by--
          (1) striking ``the date 60 days after the filing of such 
        complaint nor later than 5 months after the expiration of such 
        60-day period'' in the second sentence and inserting ``the date 
        of the filing of such complaint nor later than 5 months after 
        the filing of such complaint'';
          (2) striking ``60 days after'' in the third sentence and 
        inserting ``of'';
          (3) striking ``expiration of such 60-day period'' in the 
        third sentence and inserting ``publication date''; and
          (4) striking the fifth sentence and inserting: ``If no final 
        decision is rendered by the conclusion of the 180-day period 
        commencing upon initiation of a proceeding pursuant to this 
        section, the Commission shall state the reasons why it has 
        failed to do so and shall state its best estimate as to when it 
        reasonably expects to make such decision.''.

                    Subtitle G--Consumer Protections

SEC. 1181. CONSUMER PRIVACY.

  The Federal Trade Commission shall issue rules protecting the privacy 
of electric consumers from the disclosure of consumer information in 
connection with the sale or delivery of electric energy to a retail 
electric consumer. If the Federal Trade Commission determines that a 
State's regulationsprovide equivalent or greater protection than the 
provisions of this section, such State regulations shall apply in that 
State in lieu of the regulations issued by the Commission under this 
section.

SEC. 1182. UNFAIR TRADE PRACTICES.

  (a) Slamming.--The Federal Trade Commission shall issue rules 
prohibiting the change of selection of an electric utility except with 
the informed consent of the electric consumer or if determined by the 
appropriate State regulatory authority to be necessary to prevent loss 
of service.
  (b) Cramming.--The Federal Trade Commission shall issue rules 
prohibiting the sale of goods and services to an electric consumer 
unless expressly authorized by law or the electric consumer.
  (c) State Authority.--If the Federal Trade Commission determines that 
a State's regulations provide equivalent or greater protection than the 
provisions of this section, such State regulations shall apply in that 
State in lieu of the regulations issued by the Commission under this 
section.

SEC. 1183. DEFINITIONS.

  For purposes of this subtitle--
          (1) ``State regulatory authority'' has the meaning given that 
        term in section 3(21) of the Federal Power Act (16 U.S.C. 
        796(21)).
          (2) ``Electric consumer'' and ``electric utility'' have the 
        meanings given those terms in section 3 of the Public Utility 
        Regulatory Policies Act of 1978 (16 U.S.C. 2602).

                    Subtitle H--Technical Amendments

SEC. 1191. TECHNICAL AMENDMENTS.

  (a) Section 211(c) of the Federal Power Act (16 U.S.C. 824j(c)) is 
amended by--
          (1) striking ``(2)'';
          (2) striking ``(A)'' and inserting ``(1)'';
          (3) striking ``(B)'' and inserting ``(2)''; and
          (4) striking ``termination of modification'' and inserting 
        ``termination or modification''.
  (b) Section 211(d)(1) of the Federal Power Act (16 U.S.C. 824j(d)) is 
amended by striking ``electric utility'' the second time it appears and 
inserting ``transmitting utility''.
  (c) Section 315 of the Federal Power Act (16 U.S.C. 825n) is amended 
by striking ``subsection'' and inserting ``section''.

                         Purpose of the Measure

    The purpose of the measure is to provide a comprehensive 
national energy policy that balances domestic energy production 
with conservation and efficiency efforts to enhance the 
security of the United States and decrease dependence on 
foreign sources of oil.

                      Summary of Major Provisions

    Title I--Oil and Gas. Title I provides a variety of 
production incentives, improves the Federal permitting process 
and expedites the construction of the Alaska Natural Gas 
Pipeline to increase domestic production of oil and gas 
supplies in order to meet the rising demand expected over the 
next 20 years. Subtitle A permanently authorizes the Strategic 
Petroleum Reserve, which will protect oil markets against 
severe supply disruptions. The subtitle provides financial 
relief to encourage development of deep water production and 
production from deep natural gas wells in the Central and 
Western Planning Areas and a portion of the Eastern Planning 
Area in the Gulf of Mexico, as well as provide royalty relief 
to marginal wells located on Federal lands and the Outer 
Continental Shelf in order to extend the life of wells that 
might be abandoned due to economic factors. In Alaska, the 
Secretary of the Interior is authorized to provide royalty 
relief to existing, non-producing offshore leases. Subtitle B 
includes several provisions that will improve access to Federal 
lands, as well as expedite the designation and approval of 
permits on multiple use designated lands and improve inspection 
and enforcement of existing permits. In an effort to improve 
energy infrastructure development, the Secretaries of the 
Interior and Agriculture are instructed to designate energy 
corridors on western lands that can be used for the deployment 
of energy transportation and transmission rights-of-way. 
Subtitle C authorizes the expedited certification and 
permitting of a natural gas pipeline to transport natural gas 
from Alaska to markets in the continental United States in 
order to meet rapidly growing demand for natural gas. Over 30 
trillion cubic feet of Alaska natural gas have been discovered 
and developed, but has been stranded due to the risks involved 
in undertaking this enormous and costly construction project. 
The construction of a pipeline will stimulate further 
development of natural gas resources in Alaska.
    Title II--Coal. Title II contains provisions that provide 
critical research of our most abundant fossil resource, coal. 
The development of cleaner burning coal, as well as the 
improvement of Federal mining rules to provide operators the 
flexibility to optimize the recovery of existing and new coal 
production, are also included. Today, more than one-half of 
U.S. electricity is generated from low cost domestic coal and 
can play a greater role in meeting future demand. At current 
consumption rates, it would provide more than 250 years of 
supply. The coal option needs to be preserved to ensure a 
diversity of supply, and affordable and reliable electricity. 
Subtitle A authorizes the Clean Coal Power Initiative, which 
provides $200 million annually to be applied toward clean coal 
research in coal based gasification technologies. The Secretary 
of Energy is charged with setting increasingly restrictive 
emission targets over the life of the program to develop state-
of-the-art technology. Subtitle B amends several provisions of 
the Mineral Leasing Act governing the Federal Coal Leasing 
Program, including those pertaining to lease modifications to 
avoid the bypass of coal, mining requirements for logical 
mining units, payment of advance royalties, and the deadline 
for submission of a coal lease operation and reclamation plan. 
Subtitle C authorizes the Secretary of the Interior to review 
the Department of Interior's authority to resolve conflicts 
between the development of coal and coalbed methane from the 
same lease.
    Title III--Indian Energy. Title III, referred to as the 
Indian Tribal Energy Development and Self-Determination Act of 
2003, assists Indian Tribes in the development of Indian energy 
resources by increasing Tribes' internal capacity to develop 
their own resources by providing grants and technical 
assistance, and streamlining the approval process for Tribal 
leases, agreements, and rights-of-way so that outside parties 
have more incentive to partner with Tribes in developing energy 
resources. Included in this title are provisions creating an 
Office of Indian Energy Policy and Programs within the 
Department of Energy to support the development of tribal 
energy resources. Section 305 makes Dine Power Authority, a 
Navajo Nation enterprise, eligible for funding under this 
title. Section 306, directs the Secretary of Housing and Urban 
Development to promote energy efficiency for Indian housing.
    The title also provides a complete substitute for title 26 
of the Energy Policy Act of 1992. Sections 2602 and 2603 
authorizes the Secretary of the Interior to provide grants to 
tribes to develop and utilize their energy resources and to 
enhance the legal and administrative ability of tribes to 
manage their resources. Section 2604 establishes a process by 
which an Indian tribe, upon demonstrating its technical and 
financial capacity, could negotiate and execute energy resource 
development leases, agreements and rights-of-way with third 
parties without first obtaining the approval of the Secretary 
of the Interior. Section 2605 authorizes WAPA to make power 
allocations to meet the firming and reserve needs of Indian-
owned energy projects and acquire power generated by Indian 
tribes for firming and reserve needs, so long as the rates and 
terms are competitive. Section 2606 authorizes the Secretary of 
the Interior to review activities authorized under the Indian 
Mineral Development Act. Section 2607 authorizes a study of 
wind and hydropower potential along the Missouri River.
    Title IV--Nuclear. Title IV provides for programs to ensure 
that nuclear energy continues as a major component of the 
Nation's energy supply. Price Anderson liability protection is 
permanently extended for both NRC licensees and DOE 
contractors, coverage is increased and indexed for inflation, 
and non-profit contractors of the Department are made subject 
to payment of penalties assessed for nuclear safety violations. 
The Secretary of Energy is authorized to provide loan 
guarantees and purchase agreements in financing new nuclear 
plants, if the plants are needed for energy security, to ensure 
fuel or technology diversity, or to attain clean air goals. The 
Secretary's loan guarantee authority may extend to half of a 
project's cost and up to 8400 megawatts of new plant 
construction are eligible for assistance. A research, 
development, and construction project is authorized for a new 
test reactor, to be constructed at the Idaho National 
Engineering and Environmental Laboratory, to provide a national 
testbed for advanced reactor technologies and for co-generation 
of hydrogen by nuclear energy. This advanced test reactor must 
provide improved attributes over existing plants. Limits, with 
several listed exemptions, are imposed on future sales or 
transfers of government stockpiles of uranium, subject to tests 
that fair market value is received for sales and that national 
security is not adversely impacted.
    Title V--Renewable Energy. Title V provides for an ongoing 
assessment of renewable energy resources, extends existing 
authority for incentive programs for production of renewable 
electricity, requires an update of energy plans for insular 
areas, and requires the Federal government to purchase a set 
amount of electric energy from renewable resources. Subtitle B 
amends the Federal Power Act to require the consideration, and 
upon meeting certain requirements, adoption of applicant-
proposed alternatives by Federal resource agencies in imposing 
mandatory conditions or fishway prescriptions on hydroelectric 
licenses.
    Subtitle C updates the Geothermal Steam Act by amending the 
leasing provisions to replicate more closely aspects of the oil 
and gas leasing law by changing from a system in which the 
Federal Government determines where the high value geothermal 
prospects are located by designating ``Known Geothermal 
Resource Areas'' to a competitive leasing system as well as 
directing other actions for the purpose of facilitating new 
development of Geothermal Resources.
    The programs authorized in Subtitle D are designed to 
encourage the use of biomass from Federal or Indian lands to 
produce electric energy, transportation fuels, or substitutes 
for petroleum products, and to encourage removal of hazardous 
fuels from the highest risk areas on Federal and Indian lands 
and to develop new technology to use biomass. The programs are 
not intended to off-set the costs of the production of existing 
petroleum-based products, such as plastics. The grants are to 
be awarded to individuals in communities or Indian reservations 
that are located near an area that suffers from, or is at 
significant risk from, catastrophic wildfire, disease, or 
insect infestation.
    Title VI--Energy Efficiency. Title VI sets new performance 
requirements for the operations of Federal agencies and 
buildings, requires Federal agencies to procure only energy 
efficient products, and requires energy use metering in all 
Federal buildings. It permanently authorizes the Energy Savings 
Performance Contracting program, and authorizes pilot projects 
under such program for ``non-building'' applications. The bill 
authorizes funding for new programs to expand state and local 
energy efficiency programs to improve efficiency in low-income 
communities and public buildings such as schools, hospitals and 
government facilities, and the bill provides for funding to 
States and local governments to encourage consumers to exchange 
existing appliances for new, more energy efficient units. The 
bill also sets by law energy efficiency standards for a number 
of new consumer products, and calls on the Department of Energy 
to initiate rulemaking processes to set standards for others. 
It requires the Federal Trade Commission to review and improve 
energy efficiency labeling programs, and authorizes funding for 
the Energy Star program and a consumer education program on 
HVAC maintenance. The bill includes a number of changes to 
existing public housing law to enable improved energy 
efficiency in the construction and maintenance of public 
housing, improves Federal efficiency standards for public 
housing facilities, and requires public housing agencies to 
purchase energy efficient products.
    Title VII--Transportation Fuels. Title VII makes a number 
of changes to the alternative fuel vehicle mandate program 
applicable to Federal, State, local and fuel provider vehicle 
fleets pursuant to the Energy Policy Act of 1992. In 
particular, credits towards compliance with fleet mandates can 
be accrued for the actual use of alternative fuels, the 
purchase of neighborhood electric vehicles, investment in 
alternative fuel infrastructures, or equivalent contributions 
towards other fleets compliance with their mandates through the 
purchase of vehicles or fueling infrastructure. The bill 
requires a complete review of alternative fuel vehicle mandate 
programs, and enables States to enact regulations to allow 
alternative fuel vehicles to use High Occupancy Vehicle lanes 
regardless of the number of passengers carried. The bill 
removes the 50 percent cap on biodiesel credits. The bill 
requires the National Highway Transportation Safety 
Administration (NHTSA) to additionally consider the effects on 
passenger safety and employment levels in the U.S. auto 
industry when setting fuel economy standards, requires an 
analysis of proposed changes, and extends incentives for 
``dual-fuel'' vehicles for another four years. It requires the 
Federal fleet to improve its fuel economy by 3 miles per gallon 
by 2005 relative to 1999 levels, authorizes funding for 
improved railroad efficiency programs, and authorizes a weight 
exemption of 400 lbs for heavy duty trucks that install 
approved devices to limit engine idling.
    Title VIII--Hydrogen. Title VIII reauthorizes and updates 
the Spark M. Matsunaga Hydrogen Research, Development, and 
Demonstration Act of 1990, which provides for basic hydrogen 
energy research and development programs. The title also 
authorizes new research and development programs for hydrogen 
vehicle technologies (``FreedomCAR'') and for use as a 
transportation fuel. The title provides authorization for a 
variety of programs to demonstrate hydrogen and fuel cells for 
use in light- and heavy-duty vehicle fleets, stationary power 
applications (including by Indian tribes and as distributed 
generation facilities using renewable energy), national parks, 
and international projects. The title requires Federal agencies 
to consider how they can incorporate hydrogen and fuel cell 
technologies into their missions, and sets new mandates for 
displacement of Federal electric energy demand via fuel cells 
and use of hydrogen fueled vehicles in Federal fleets.
    Title IX--Research and Development. Title IX provides the 
research and development base underpinning the full range of 
energy-related technologies. Subtitles of the title are devoted 
to Energy Efficiency, Distributed Energy and Electric Energy 
Systems, Renewable Energy, Nuclear Energy, Fossil Energy, 
Science, Energy and Environment, and Management. Authorizations 
are provided in each Subtitle for the programs described 
therein. Broad goals are established to guide the research and 
development activities of: diversifying energy supplies, 
increasing energy efficiency, decreasing dependence on foreign 
energy supplies, improving energy security, and decreasing 
environmental impact. The Secretary is annually directed to 
publish specific goals in major program areas consistent with 
these broad goals. The Management section includes initiatives 
to improve technology transfer and small business interactions, 
to authorize funding for science education, and to create a new 
Undersecretary for Science and Energy.
    Title X--Personnel and Training. Title X requires the 
Secretary of Energy to monitor energy workforce trends and, 
where necessary, use grants, fellowships, traineeships or other 
training programs to ensure a sufficient number of workers in 
energy fields. The bill requires establishment of training 
guidelines for electric energy industry personnel, 
establishment of centers for building technologies and power 
plant operations training, and increased activity by the 
Department of Energy to improve recruitment of under-
represented groups into energy fields of education and 
employment. The Secretary of Labor is required to hire and 
train sufficient Federal mine operators to ensure safety of 
mining activities.
    Title XI--Electricity. Title XI will reduce regulatory 
uncertainty, promote transmission infrastructure development 
and security, and increase consumer protections. Subtitle A 
requires mandatory rules for operation to ensure transmission 
grid reliability. Subtitle B remands the proposed rulemaking on 
Standard Market Design to FERC and prohibits issuance of a 
final rule before July 1, 2005. Subtitle C protects 
transmission access for native load customers and authorizes 
FERC to exercise limited jurisdiction over unregulated 
transmitting utilities (like municipals and cooperatives) to 
ensure open access to the transmission grid. It also directs 
FERC to issue rules on transmission pricing policies and cost 
allocation for transmission expansion. Subtitle D amends the 
Public Utility Regulatory Policies Act of 1978 (PURPA). It 
prospectively repeals the mandatory purchase and sale from 
qualifying facilities requirements on electric utilities if 
there is a competitive market, meaning an independently 
administered, auction-based day ahead and real time market. 
Subtitle E repeals the Public Utility Holding Company Act of 
1935 (PUHCA). Subtitle F addresses market transparency and 
manipulation and increases penalties for violations of the 
Federal Power Act and the Natural Gas Act. Subtitle G directs 
the Federal Trade Commission to promulgate rules to increase 
consumer protections. Subtitle H makes technical changes in the 
Federal Power Act.

                          Background and Need

    Nearly five decades ago energy demand in the United States 
began exceeding domestic supply. That trend has increased over 
the years as the Nation has grown in population and expanded 
its economy. Current Department of Energy projections indicate 
that the disparity between energy supply and demand will 
continue to grow. The widening gap between supply and demand, 
accompanied by reliance on foreign sources to close that gap, 
has created profound concerns in the Congress over the Nation's 
energy security. The supply and demand gap places pressure on 
the market and leads to volatile prices, exacerbating economic 
problems. Coupled with those concerns is the recognition that 
meeting demand must be accomplished in an environmentally sound 
manner. A combination of energy production, conservation, 
efficiency, and development of new technologies is the bedrock 
of a sound energy policy aimed at closing the supply and demand 
imbalance. Such a policy is necessary to ensure the country's 
continued growth and prosperity and to protect our national 
security.

                               PRODUCTION

    Today, U.S. oil production is at a 50-year low and 
continues to decline, placing increasing importance on imports, 
often from unstable regimes. Oil imports accounted for roughly 
60 percent of U.S. consumption in 2002, and nearly a third of 
the current trade deficit. Currently, the United States 
consumes roughly 19 million barrels of oil per day (mmbd)--12 
million in the transportation sector alone. Demand in the 
transportation sector is projected to grow by 2.5 percent per 
year from 1999 to 2020, a higher pace than that forecast for 
energy demand as a whole. The growing demand for petroleum used 
in transportation is of particular concern to the United States 
for a number of reasons, including energy security issues 
related to increasing dependence on foreign oil, and 
environmental concerns over emissions of air pollutants and 
greenhouse gases resulting from increased oil usage.
    Projected growth in domestic production of natural gas and 
coal provides a limited counterbalance to the dismal oil 
outlook. Over the next 20 years, natural gas production is 
expected to grow by 1.3 percent per year, and coal by 0.9 
percent per year. Natural gas currently represents 24 percent 
of all energy consumed in the U.S. and supplies nearly one-
fifth of all electricity generation. Coal remains the primary, 
and most efficient, fuel for electricity generation, currently 
accounting for over half of all electric generation in the U.S. 
Even though production is expected to grow in the two sectors, 
demand for natural gas is projected to outpace supply, and 
neither fuel is able to offset the overall gap between energy 
supply and energy demand in the United States.
    Despite the growing dependence on imports, the Nation has a 
wealth of domestic resources that are currently untapped. The 
United States currently has an estimated 22.4 billion barrels 
of proven oil reserves--12th highest in the world--with over 65 
percent of proven oil reserves concentrated in the Gulf of 
Mexico and Alaska. A 1999 National Petroleum Council study 
found that the lower 48 States, including the Gulf of Mexico, 
hold a tremendous supply of natural gas (1,466 tcf). Obstacles 
to development of these resources include regulatory hurdles, 
price volatility, and lack of infrastructure. While the price 
spikes in 2000 led to a significant increase in gas well 
drilling activity in 2001, domestic gas producers have not 
responded to recent higher prices as robustly. U.S. production 
fell by 2.3 percent in 2002. World market prices for crude oil 
remain high, but domestic producers need additional incentives 
to encourage the development of available resources.
    Resource development on onshore Federal land administered 
by the Bureau of Land Management (BLM) provides 5 percent of 
the Nation's oil production; 11 percent of its natural gas 
production; 35 percent of its coal production; 20 percent of 
its wind power production; and 48 percent of its geothermal 
energy production. Oil and gas development on the OCS, 
administered by the Minerals Management Service (MMS), is 
projected to produce more than 25 percent of both the Nation's 
oil and natural gas in 2003. In addition to traditional sources 
of energy, Federal lands provide significant renewable 
resources, accounting for 17 percent of the Nation's 
hydropower, 20 percent of its wind power, and 48 percent of its 
geothermal production. However, various regulatory restrictions 
and processes hinder full development of all of these 
resources.
    Production on Federal lands and in the OCS can be 
encouraged through regulatory streamlining and incentives such 
as royalty relief. Certain renewable energy sources have been 
provided royalty relief to increase their economic viability. 
Other energy sources such as geothermal and OCS oil and gas 
production, still face a significant financial burden that 
prevents increased development. Hydropower projects on Federal 
lands can take years to license, hampering long-term investment 
and stability.
    In addition to their potential for providing new domestic 
energy production, Federal lands could also play an important 
role in developing a comprehensive interstate delivery system 
for the Nation's energy supplies. Streamlining the permitting 
and siting of energy infrastructure investments on Federal 
lands will add to the reliability of energy supplies and help 
to reduce the cost of domestic production.
    There are abundant energy resources available for 
production on Indian Lands. Development of those resources must 
be encouraged.
    Currently, nuclear power provides over 20 percent of our 
electricity. Reauthorization of the liability and 
indemnification provisions of the Price-Anderson Act is 
critical for protection of consumers as well as stability in 
the industry. The importance of continued investments in 
nuclear energy cannot be overstated. Only nuclear and 
hydroelectric power can provide significant levels of power 
with zero air emissions. While renewables can and must play a 
role in a diverse energy mix, only nuclear power offers 
significant long-term potential to address global climate 
concerns.
    An important aspect of accessing available domestic energy 
supplies will be the assurance that supplies are able to reach 
the growing demand. A 1999 study published by the INGAA 
Foundation estimates that $47.7 billion in new investment in 
pipeline infrastructure is needed to deliver new gas supplies. 
Over 30 trillion cubic feet of natural gas have already been 
discovered in Prudhoe Bay in Alaska. At present, there is no 
viable means of moving the gas to market. As a result, oil 
producers have been reinjecting the gas into the formation for 
later use. Construction of a pipeline to bring this gas to 
markets in the lower 48 states would stimulate additional 
production of natural gas on the North Slope and other areas of 
Alaska.
    Siting difficulties for electric transmission lines is a 
major factor hindering expansion of the electric system. Better 
coordination among the States is needed on transmission siting.
    Recent instability in the electricity industry may also 
limit needed infrastructure investment. Lack of certainty as to 
the viability of market structures and the financial stability 
of market participants impedes access to and increases the cost 
of capital for the electricity sector. Delay or cancellation of 
a number of power plants and declining investment in 
transmission have raised concerns that shortages loom. The 
Energy Policy Act of 1992 facilitated the development of a 
competitive electric sector by allowing non-utility power 
producers to compete in wholesale markets. Utilities were 
required to open their transmission lines to these new 
competitors. These changes in the law allowed development of 
the merchant generator and power marketer sectors. Only a few 
years ago, merchant generators and power marketers had soaring 
stock prices and held high expectations for strong returns. 
Today, the merchant industry is in a crisis and even the stocks 
of traditional utilities have declined measurably. Many 
companies have halted new power plant development. According to 
Platts, for the period of January 2000 through July 2002, more 
than 90,000 MW of capacity were delayed and more than 86,000 MW 
of capacity were cancelled. Uncertainty in the marketplace 
about the rules and regulations that will govern generation and 
transmission facilities contributes to financial instability 
and endangers reliability of service.

                      CONSERVATION AND EFFICIENCY

    In addition to increasing domestic supplies of energy, 
reducing demand and using supplies wisely is an essential part 
of a balanced national energy policy. According to the Energy 
Information Administration, as energy prices increased between 
1970 and 1986, energy intensity (measured by energy use per 
dollar of GDP) declined at an average annual rate of 2.3 
percent. About half of that decrease comes from efficiency 
measures. Energy intensity is projected to continue its decline 
at an average annual rate of 1.5 percent through 2025 as 
continued efficiency gains and structural shifts in the economy 
offset increasing energy demand.
    One of the key roles the Federal Government plays in 
conservation is ensuring the efficient operation of Federal 
facilities. The annual energy bill for the Federal Government 
is about $9.6 billion. However, through the Federal Energy 
Management Program, the Federal Government spent $2.3 billion 
less in real dollars for energy for its buildings in FY 2000 
compared to FY 1985. The Energy Policy Act of 1992 set a 20 
percent energy reduction goal (per square foot) for Federal 
facilities by FY 2000 relative to FY 1985. Preliminary FEMP 
data indicated that this goal was exceeded by 2.7 percent 
additional savings relative to the FY 1985 baseline. The 
current goals of the FEMP program, established in 1999 by 
Executive Order 13123, are to reduce energy consumption in 
federal facilities by 30 percent per square foot in 2005 and 35 
percent in 2010 relative to 1990 levels.
    On the consumer side, efficiency standards for homes and 
appliances have also added to the improved use of scarce energy 
resources. The National Appliance Energy Conservation Act 
(NAECA), enacted in 1987, provided the framework for 
establishing minimum energy efficiency standards for more than 
two dozen types of appliances and equipment. Congress expanded 
the products covered by NAECA in 1988 and 1992. DOE estimates 
that the 12 standards developed by the Department have saved 
consumers over $25 billion in cumulative electricity costs. A 
2001 study by the American Council for an Energy Efficient 
Economy (ACEEE) estimated that standards in place through the 
year 2000 reduced U.S. electricity use by 2.5 percent and 
reduced peak demand by approximately 21,000 megawatts. There 
are several appliances and equipment types not currently 
covered by Federal standards that offer the significant energy 
savings potential in the future. Additional incentives are 
needed to encourage new development in these areas.

                               INNOVATION

    The third aspect of a balanced national energy policy looks 
to the long-term future. New sources of energy and improved 
technologies for existing resources will lead to long-term 
energy security. Research and development opportunities range 
from new advanced nuclear technologies to improved conductivity 
of transmission lines to improved efficiency of light bulbs.
    President Bush announced a $1.2-billion Hydrogen Fuel 
Initiative to develop hydrogen-powered fuel cells during his 
State of the Union speech on January 28, 2003. This initiative 
will develop the technology needed for commercially viable 
hydrogen-powered fuel cells to power cars, trucks, homes, and 
businesses. Central to the development of hydrogen as a fuel 
source will be research into the technologies and 
infrastructure needed to produce, store, and distribute 
hydrogen fuel.
    The production of hydrogen is currently inefficient when 
generated using any fuel source other than nuclear power. 
Nuclear cogeneration is a new opportunity for nuclear power, 
along with deployment of the next generation of nuclear 
reactors. New nuclear reactors offer the ability to provide 
energy security, add to fuel and technology diversity, and meet 
clean air goals. The next generation of reactors is safer and 
more efficient, and is vital to the nation's energy supply. A 
new and aggressive program into innovative nuclear technologies 
can foster the development of a new generation of nuclear 
powerplants to meet future demand.
    Innovation for the future also includes improving on 
technologies for existing fuel resources. New advances in the 
oil and gas industry have led to less intrusive drilling, 
improved success in drilling wells, and stronger stewardship of 
the environment. Clean coal initiatives have resulted in 
drastic reductions in emissions without limiting the ability of 
coal to serve as the most reliable and efficient means of 
electric generation. Looking to the future, clean coal research 
will ensure that new power plants meet high standards of 
economic viability and environmental protection.
    The Committee believes that the provisions contained in 
this legislation, especially when combined with provisions 
dealing with LIHEAP and weatherization that the Committee has 
approved and tax provisions to be offered from the Finance 
Committee, are the genesis for improving the national security 
of this Nation, enhancing the environment, strengthening self-
government for Native American communities, decreasing 
dependence on foreign sources of energy, aiding the economy, 
and diversifying the energy base of the country.

                          Legislative History

    During the 107th Congress, numerous measures were 
introduced dealing with energy issues either on a comprehensive 
or more limited basis. Both the Senate and the House of 
Representatives passed comprehensive energy policy legislation 
using H.R. 4, the Securing America's Future Energy Act of 2001, 
as the primary legislative vehicle. The House of 
Representatives passed H.R. 4 on August 2, 2001 and it was 
placed on the Senate Calendar on September 4, 2001 without 
reference to Committee. The Senate considered comprehensive 
legislation in the context of Senate Amendment 2917, an 
amendment in the nature of a substitute, offered by Senators 
Daschle and Bingaman. The amendment was offered to S. 517, the 
National Laboratories Partnership Improvement Act of 2001. The 
Senate debated S. 517 on February 15, March 5, 6, 7, 8, 11, 12, 
13, 14, 15, 19, 20, and 21, and April 8, 9, 10, 11, 16, 17, 18, 
22, 23, 24, and 25, 2002 adopting approximately 125 amendments. 
On April 25, 2002, the Senate passed H.R. 4 after agreeing to 
Amendment 2917, as amended, striking the House-passed text of 
H.R. 4 and inserting the text of S. 517, as amended. A 
conference was agreed to and met on June 27, July 25, September 
12, 19, 25, and 26, and October 2 and 3, but was unable to 
resolve the differences between the two bodies before the 107th 
Congress adjourned.
    During the 108th Congress, the Committee conducted several 
hearings examining various aspects of energy. On February 13, 
the Committee conducted a hearing on Oil Supply and Prices; on 
February 25 on Natural Gas Supply and Prices; on February 27 on 
Energy Production on Federal Lands; on March 4 on the Financial 
Condition of the Electricity Market; on March 6 on Energy Use 
in the Transportation Sector; on March 11 on Energy Efficiency 
and Conservation; and on March 27 on various legislative 
proposals dealing with Electricity. The Committee held business 
meetings on April 8, addressing title V--Renewable Energy, 
title VI--Energy Efficiency, title VIII--Hydrogen, title X--
Personnel and Training, and title XIII--State Energy Programs; 
on April 9 to consider title I--Oil and Gas and title II--Coal; 
on April 10 to consider title IV--Nuclear Matters; on April 29 
to consider title III--Indian Energy, title VII--Transportation 
Fuels, and title IX--Research and Development; and on April 30 
to consider title XI--Electricity. On April 30, 2003, the 
Committee voted to order an original bill reported to the 
Senate, including all titles except title XIII, which the 
Chairman intends to introduce as an amendment during floor 
consideration of a comprehensive energy bill. Also on April 30, 
Senator Domenici introduced S. 14, the Energy Policy Act of 
2003, which includes the provisions of this measure as ordered 
reported. S. 14 was placed directly on the Senate calendar.

                       Committee Recommendations

    The Senate Committee on Energy and Natural Resources, in 
open business section on May 1, 2003, by a majority vote of a 
quorum present recommends that the Senate pass S.    , as 
described herein.
    The roll call vote on reporting the measure was 13 yeas, 10 
nays as follows:
        YEAS                          NAYS
Mr. Domenici                        Mr. Bingaman
Mr. Nickles                         Mr. Akaka
Mr. Craig                           Mr. Dorgan \1\
Mr. Campbell \1\                    Mr. Graham \1\
Mr. Thomas                          Mr. Wyden
Mr. Alexander                       Mr. Johnson
Ms. Murkowski \1\                   Mr. Bayh \1\
Mr. Talent \1\                      Ms. Feinstein \1\
Mr. Burns                           Mr. Schumer \1\
Mr. Smith                           Ms. Cantwell
Mr. Bunning \1\
Mr. Kyl
Ms. Landrieu

    \1\ Indicates vote by proxy.

                      Section-by-Section Analysis

                          TITLE I--OIL AND GAS

         Subtitle A--Oil and Natural Gas Production Incentives

Section 101. Permanent Authority to Operate the Strategic Petroleum 
        Reserve

    Section 101 permanently authorizes the Strategic Petroleum 
Reserve.

Section 102. Study on Petroleum and Natural Gas Storage Capacity

    Section 102 requires the Secretary of Energy to undertake a 
review of national minimum operating working storage levels 
across the nation and prepare a report for Congress on the 
storage outlook and the minimum inventories the U.S. economy 
can function on without interruption or rationing.

Section 103. Program on Oil and Gas Royalty-in-Kind

    Section 103 provides that all royalty accruing for oil or 
gas under a Federal lease issued pursuant to the Mineral 
Leasing Act or the Outer Continental Shelf Lands Act shall, on 
the demand of the Secretary, be paid in oil or gas beginning on 
the date of enactment through September 30, 2013. The section 
gives the Secretary the authority to retain and use a portion 
of the revenues generated from RIK sales to pay costs of 
transporting, processing, or disposing of the royalty 
production. The Secretary may receive royalties in kind only if 
the Secretary determines that doing so provides benefits to the 
United States greater than or equal to those likely to have 
been received had royalties been taken in value.

Section 104. Marginal Well Production Incentives

    Section 104 defines ``marginal property'' with respect to 
Federal onshore oil and gas leases. It sets forth conditions 
for the reduction of the royalty rate on such properties, and 
sets the reduced royalty rate. The section provides authority 
for the Secretary of the Interior to prescribe different 
standards for royalty relief by regulation. It directs the 
Secretary to issue rules prescribing standards for royalty 
relief for marginal properties under federal oil and gas lease 
on the Outer Continental Shelf.

Section 105. Inventory of OCS Resources

    Section 105 requires the Secretary to survey all OCS oil 
and gas resources currently in existing production areas and 
those under moratoria to develop an inventory of potential oil 
and gas resources of the U.S. The Secretary is directed to use 
data on resources in Canada and Mexico, as well as using any 
available technology (except for drilling which is explicitly 
prohibited), including 3-D seismic technology, to develop 
accurate domestic oil and gas resource estimates.

Section 106. Royalty Relief for Deep Water Production

    Section 106 provides royalty relief to encourage the 
development of oil and gas resources located in water depth 
between 400-1,600 meters in the Western and Central Gulf of 
Mexico Planning Areas and a specified portion of the Eastern 
Gulf of Mexico Planning Area. This section will provide the 
same level of royalty relief as currently in effect to all 
lease sales over the next five years.

Section 107. Alaska Offshore Royalty Suspension

    Section 107 authorizes the Secretary of the Interior under 
the Outer Continental Shelf Lands Act to give royalty relief to 
existing, non-producing leases for production in Alaska 
frontier regions, as specified in the section.

Section 108. Orphaned, Abandoned, or Idled Wells on Federal Lands

    Section 108 provides a five-year, $20,000,000 annual 
authorization to the Secretary of the Interior to develop a 
program to remediate, reclaim, and close, orphaned, abandoned, 
or idled wells on Federal lands administered by the Secretaries 
of the Interior and Agriculture. This section also establishes 
a technical assistance program to provide assistance to states 
in dealing with orphaned and abandoned wells on state and 
private lands.

Section 109. Incentives for Natural Gas Production from Deep Wells in 
        the Shallow Water of the Gulf of Mexico

    Section 109 directs the Secretary of the Interior to 
publish a final rule providing royalty incentives for shallow 
water, deep gas production on the Outer Continental Shelf in 
the Gulf of Mexico wholly west of 87 degrees, 30 minutes West 
longitude.

Section 110. Alternate Energy-Related Uses on the Outer Continental 
        Shelf

    Section 110 amends the Outer Continental Shelf Lands Act to 
provide authority to the Secretary of the Interior to grant 
easements and rights-of-way for energy and related purposes on 
the Outer Continental Shelf, as specified. The section does not 
allow the grant of easements or rights-of-way for activities 
that support the exploration, development, or production of oil 
and gas in areas where oil and gas preleasing, leasing and 
related activities are prohibited by a Congressional moratorium 
or a withdrawal pursuant to section 12 of the Outer Continental 
Shelf Lands Act. The authority does not apply to any area 
within the exterior boundaries of any unit of the National Park 
System, National Wildlife Refuge System, or National Marine 
Sanctuary System, or any National Monument.

Section 111. Coastal Impact Assistance

    Section 111 authorizes the appropriation for fiscal years 
2004 through 2009 of an amount equal to 12.5 percent of 
qualified Outer Continental Shelf revenues for payments to 
Producing Coastal States with approved Coastal Impact 
Assistance Plans and political subdivisions in accordance with 
a formula set forth in the section. Thirty-five percent of a 
State's allocable share will be paid directly to the coastal 
political subdivisions in the state. Amounts provided under the 
section must be used for projects and activities for the 
conservation, protection, or restoration of coastal areas, 
including wetlands, mitigating damage to fish, wildlife, or 
natural resources, planning assistance and administrative costs 
of complying with the provisions of this section, 
implementation of approved marine, coastal or conservation 
plans, and mitigating the impacts of Outer Continental Shelf 
activities through funding onshore infrastructure and public 
service needs.

Section 112. National Energy Resource Database

    Section 112 directs the Secretary of the Interior to 
develop the National Energy Data Preservation Program, working 
in cooperation with the States. This program would archive 
geological, geophysical, and engineering data and samples 
related to oil and gas development.

Section 113. Acreage Limitation

    Section 113 amends the Mineral Leasing Act provision 
relating to the limitation on the amount of acreage that can be 
held by a person under lease in any one state.

Section 114. Hawaii Energy Assessment

    Section 114 requires the Secretary of Energy to assess the 
economic implication of the dependence of the State of Hawaii 
on oil as the principal source of energy for the State.

                  Subtitle B--Access to Federal Lands

Section 121. Office of Federal Energy Permit Coordination

    Section 121 authorizes the creation of the Office of 
Federal Energy Permit Coordination within the Executive Office 
of the President. The office will be staffed with experts from 
Federal agencies and departments as needed. The office is 
charged with preparing an annual report to Congress detailing 
activities put in place to coordinate and expedite Federal 
decisions on energy projects and making recommendations on 
regulatory improvements needed to improve the federal 
permitting process.

Section 122. Pilot Program to Improve Federal Permit Coordination

    Section 122 requires the Secretary of the Interior to 
establish a Federal Permit Streamlining Pilot Project. Six 
Western offices of the Bureau of Land Management (BLM) are 
identified for participation in the project. The provision 
requires that relevant federal agencies deploy staff to work 
with BLM land managers as a team on all environmental permits 
and land use planning documents in order to coordinate and 
improve Federal decisionmaking with respect to the permits. 
Each office will prepare an annual report for submission to the 
President. The section directs the Secretary of the Interior to 
assign such additional personnel to the six BLM offices as 
necessary to ensure effective implementation of the Pilot 
Program and the other programs administered by the BLM offices 
pursuant to the statutory mandate for the multiple use of 
public lands.

Section 123. Onshore Federal Leasing

    Section 123 directs the Secretary of the Interior to ensure 
expeditious compliance with the requirements of the National 
Environmental Policy Act of 1969, improve consultation and 
coordination with the States, and improve collection, storage, 
and retrieval of information; related to onshore oil and gas 
leasing on lands otherwise available for leasing. The section 
directs the Secretary to improve inspection and enforcement of 
oil and gas activities under the onshore oil and gas leasing 
program. The section authorizes additional appropriations for 
these purposes.

Section 124. Estimate of Oil and Gas Resources Underlying Onshore 
        Federal Lands

    Section 124 requires the Secretary of the Interior to 
expand the inventory of onshore Federal lands required in the 
Energy Act of 2000, as specified.

Section 125. Split Estate Federal Oil and Gas Leasing and Development 
        Practices

    Section 125 requires the Secretary of the Interior to 
undertake a review of the policies and management practices of 
federal subsurface oil and gas development and the effects on 
privately-owned surface lands.

Section 126. Coordination of Federal Agencies To Establish Priority 
        Energy Transmission Rights-of-Way

    Section 126 requires the Secretary of the Interior, with 
respect to public lands, and the Secretary of Agriculture, with 
respect to National Forest System lands, to designate utility 
corridors in Western States and to incorporate such corridors 
into land use and resource management plans within 24 months 
following enactment of the section. The section also requires 
the Secretary of Energy to develop a memorandum of 
understanding with the Secretary of the Interior, the Secretary 
of Agriculture, and the Secretary of Defense to coordinate 
applicable Federal authorizations and environmental reviews 
related to a proposed or existing utility facility.

                Subtitle C--Alaska Natural Gas Pipeline

Section 131. Short Title

    Section 131 designates the subtitle ``The Alaska Natural 
Gas Pipeline Act''.

Section 132. Definitions

    Section 132 defines terms used in the subtitle.

Section 133. Issuance of Certificate of Public Convenience and 
        Necessity

    Section 133 stipulates several criteria on the Federal 
Energy Regulatory Commission's (FERC) authority to issue a 
certificate of public convenience and necessity authorizing the 
construction, operation, expansion and regulation of the Alaska 
gas pipeline. The section finds that there is public need and 
sufficient downstream capacity. The section prohibits FERC from 
approving a Northern pipeline route through Canada. The section 
also requires that procedures governing the conduct of open 
seasons for capacity on an Alaska natural gas transportation 
project be established by FERC consistent with promoting 
competition in the exploration and production of natural gas in 
Alaska. The language clarifies that regular Natural Gas Act 
certificate procedures will apply to new or expanded projects 
to deliver Alaska gas from the end point of the project to the 
contiguous United States. FERC is authorized to provide for 
reasonable access to the pipeline for transportation of the 
Alaska royalty gas for local consumption.

Section 134. Environmental Review

    Section 134 designates FERC as the lead agency for purposes 
of NEPA compliance; requires a single EIS which consolidates 
the environmental reviews of all Federal agencies concerning 
the project; requires all Federal agencies to meet deadlines 
established by FERC; and establishes an 18-month deadline for 
completion of the EIS.

Section 135. Pipeline Expansion

    Section 135 establishes several criteria that must be met 
before FERC is authorized to permit expansion of the pipeline 
including that the expansion will not undermine the operation 
or financial stability of the pipeline.

Section 136. Federal Coordinator

    Section 136 establishes the Office of the Federal 
Coordinator within the Executive branch. This position will 
serve at the pleasure of the President and be approved by the 
Senate. The Coordinator will serve a term that lasts one year 
beyond the completion of construction on the pipeline. The 
Federal Coordinator is authorized to overrule terms and 
conditions imposed by Federal agencies if they are not required 
by law and would significantly delay the construction of an 
Alaska pipeline, excluding specified FERC authorities. The 
section also directs the Federal Coordinator to work with the 
State of Alaska and transfers to the Federal Coordinator the 
functions and authority of the Office of Federal Inspector for 
the Alaska Natural Gas Transportation System.

Section 137. Judicial Review

    Section 137 provides the U.S. Court of Appeals for the 
District of Columbia Circuit with exclusive jurisdiction over 
claims arising under this subtitle and provides a deadline for 
filing claims. It also provides for expedited consideration of 
claims arising under this subtitle or under the Alaska Natural 
Gas Transportation Act of 1976.

Section 138. State Jurisdiction Over In-State Delivery of Natural Gas

    Section 138 restates existing law, which is that the State 
may regulate local distribution of natural gas. It clarifies 
that other pipelines in Alaska are not precluded by the 
provision banning a particular route in section 704(d). It 
restates existing law providing the FERC jurisdiction over 
interstate pipeline rates and directs the FERC to confer with 
the State of Alaska as authorized under the Natural Gas Act 
regarding rates for transporting gas for use within the State.

Section 139. Study of Alternative Means of Construction

    Section 139 requires the Secretary of Energy to conduct a 
study of alternative approaches to the construction and 
operation within 18 months following enactment, unless an 
application for certificate of public convenience and necessity 
has been filed with FERC.

Section 140. Clarification of ANGTA Status and Authorities

    This section is self-explanatory.

Section 141. Sense of Congress

    Section 141 is a Sense of Congress urging pipeline sponsors 
to use North American steel and to negotiate a project labor 
agreement to expedite construction.

Section 142. Participation of Small Business Concerns

    Section 143 is a Sense of Congress urging pipeline sponsors 
to maximize the participation of small business concerns in 
contracts. Requires the Comptroller to conduct a study to the 
extent small businesses participate in construction of the 
pipeline.

Section 143. Alaska Pipeline Construction Training Program

    Section 143 authorizes the Secretary of Labor to make 
grants to the Alaska Department of Labor and Workforce 
Development to train dislocated workers, including Alaska 
Natives, in the construction and operation of the Alaska gas 
pipeline. Up to $20 million is authorized to carry out this 
section.

Section 144. Loan Guarantees

    Section 144 authorizes the Secretary of Energy to enter 
into an agreement with one or more of the certificate holders 
authorizing the construction of the Alaska natural gas 
transportation project to provide a Federal loan guarantee up 
to 80 of the total capital costs and not to exceed $18 billion.

Section 145. Sense of Congress on Natural Gas Demand

    Section 145 is a Sense of the Congress regarding future 
natural gas demand and need for additional production from 
Alaska, the continental U.S. and Canada.

                             TITLE II--COAL

                Subtitle A--Clean Coal Power Initiative

Section 201. Authorization of Appropriations

    Section 201 provides $200 million annually between 2003-
2011. The section establishes emissions milestones for the 
advancement on technology eligible for funding, requires that 
80 percent of the funding be used for gasification 
technologies, and requires the Secretary to submit a report to 
Congress regarding expenditure of funds on projects selected 
before September 30, 2004.

Section 202. Project Criteria

    Section 202 requires the Secretary to fund gasification 
technologies, carbon separation and capture technologies, 
hybrid gasification/combustion and other technologies. All 
projects must demonstrate financial viability before they are 
eligible for funding assistance under this program. Federal 
assistance can not exceed 50 percent of project funding.

Section 203. Report to Congress

    Section 203 requires the Secretary of Energy to report to 
Congress on the assessment of the program and whether or not 
the technical milestones have been achieved.

Section 204. Clean Coal Centers of Excellence

    Section 204 authorizes the Secretary of Energy to make 
competitive, merit-based grants to universities for research of 
clean coal technology.

                    Subtitle B--Federal Coal Leases

Section 211. Coal Lease Modification

    Section 211 authorizes the Secretary to add no more than 
320 contiguous or cornering acres to a coal lease upon finding 
that such lease modification would be in the interest of the 
United States, would not displace competitive interest in the 
lands, and would not include lands or deposits that can be 
developed as part of another potential or existing operation.

Section 212. Mining Plans

    Section 212 provides that the Secretary, upon making 
certain determinations as specified, may establish a period of 
greater than 40 years for the reserves of an entire logical 
mining unit to be mined.

Section 213. Payment of Advanced Royalties

    Section 213 authorizes the Secretary to accept advance 
royalties in lieu of the condition of continued operation for 
not to exceed twenty years and eliminates the prohibition on 
using advance royalties paid during the initial twenty year 
term of a lease to reduce production royalties after the 
twentieth year of a lease.

Section 214. Elimination of Deadline For Submission of Coal Lease 
        Operation and Reclamation Plan

    Section 214 eliminates the deadline for submission of the 
coal lease operation and reclamation plan.

Section 215. Application of Amendments

    Section 215 pertains to the applicability of the amendments 
to a coal lease issued before the date of enactment of the Act.

          Subtitle C--Powder River Basin Share Mineral Estate

Section 221. Resolution of Federal Resource Development Conflicts in 
        the Powder River Basin

    Section 221 requires the Secretary of the Interior to 
review the Department authority to resolve a conflict between 
the development of coal and coalbed methane from the same 
lease. The Secretary is required to report to Congress on a 
potential solution to this problem.

                        TITLE III--INDIAN ENERGY

Section 301. Short Title

    Section 301 designates Title III as ``Indian Tribal Energy 
Development and Self-Determination Act of 2003.

Section 302. Office of Indian Energy Policy and Programs

    Section 302 establishes an Office of Indian Energy Policy 
and Programs within the Department of Energy that is charged 
with improving the energy infrastructure to increase resource 
development, improve electrification, and lower energy costs on 
tribal land. This section authorizes $20 million in annual 
grant authority to the Director of this office to promote 
planning and development of energy infrastructure. In addition, 
$2 billion is authorized to provide loan guarantees for energy 
projects.

Section 303. Indian Energy

    Section 303 amends title XXVI of the Energy Policy Act of 
1992 as follows:

                       TITLE XXVI--INDIAN ENERGY

            Section 2601. Definitions
    Section 2601 defines terms used in the title.
            Section 2602. Indian Energy Resource Development
    Section 2602 authorizes the Secretary of Energy to provide 
tribes grants, and low-interest loans as well as technical 
assistance in developing energy resources located on Indian 
land and to expand a tribe's technical and managerial 
abilities.
            Section 2603. Indian Tribal Energy Resource Regulation
    Section 2603 authorizes the Secretary of the Interior to 
provide grants in order to cultivate legal training and 
implementation of tribal laws governing the development of 
energy projects and protection of the environment. The section 
also provides funding for feasibility studies as necessary to 
help tribes develop their energy resources.
            Section 2604. Leases Involving Energy Development or 
                    Transmission
    Section 2604 authorizes tribes to enter into leases or 
business agreements and issue rights-of-way without Secretarial 
approval, so long as those leases, business agreements, or 
rights-of-way conform to regulations promulgated by the 
Secretary. It establishes a process by which a tribe must 
submit a plan governing leases and rights-of-way to the 
Secretary for approval. Prior to approval, the Secretary must 
be satisfied that the plan includes provisions regarding lease 
and contract terms, an environmental review process, and public 
notification and comment. The section also requires the 
Secretary to conduct an annual trust asset evaluation as well 
as providing for compliance review of any energy resource 
agreement.
            Section 2605. Federal Power Marketing Administrations
    Section 2605 encourages the Administrators of the 
Bonneville Power Authority, and Western Area Power Authority to 
support Indian tribal energy development and clarifies their 
authority to purchase firm and replacement power from tribes 
and for tribes to use WAPA allocations for the same purpose. It 
also prohibits the Administrator from purchasing power supplies 
that exceed the prevailing market rates or terms. In addition, 
it requires the Secretary of Energy to review the power 
allocations made to tribes and any impediments to the use of 
PMA power by tribes.
            Section 2606. Indian Mineral Development Act Review
    Section 2606 directs the Secretary of the Interior to 
submit a report to the relevant Committees about possible 
barriers to energy development contained in the Indian Mineral 
Development Act, with suggestions for removing those 
impediments.
            Section 2607. Wind and Hydropower Feasibility Study
    Section 2607 requires the Secretary of Energy in 
cooperation with the Secretary of Interior and the Secretary of 
the Army to study the feasibility of developing a demonstration 
project to use wind energy generated by Indian tribes and 
hydropower generated by the Army Corps of Engineers on the 
Missouri River to supply firming power to Western Area Power 
Authority.

Section 304. Four Corners Transmission Project

    Section 304 makes Dine Power Authority, of the Navajo 
Nation, eligible for funding under section 2602 and section 302 
of this Act.

Section 305. Energy Efficiency and Structures on Indian Lands

    Section 305 directs the Secretary of Housing and Urban 
Development to provide technical assistance to Tribes and other 
Tribal housing entities that will initiate and expand the use 
of energy-saving technologies in new home construction and 
housing rehabilitation.

Section 306. Consultation with Indian Tribes

    Section 306 requires the Secretary of Energy and Secretary 
of the Interior to consult with Indian Tribes in carrying out 
this Act.

                       TITLE IV--NUCLEAR MATTERS

               Subtitle A--Price-Anderson Act Amendments

Section 401. Short Title

    Section 401 is self-explanatory.

Section 402. Extension of Indemnification Authority

    The authorization period is indefinitely extended for 
indemnification provisions for Nuclear Regulatory Commission 
(NRC) licensees and Department of Energy (DOE) contractors.

Section 403. Maximum Assessment

    Section 403 increases the maximum annual assessment under 
the standard deferred premium on NRC licensees from $10 million 
to $15 million, and adjusts this number for inflation in the 
future.

Section 404. Department of Energy Liability Limit

    Section 404 sets the total amount of indemnification for 
DOE contractors at $10 billion, and adjusts this number for 
inflation in the future.

Section 405. Incidents Outside the United States

    This section increases the amount of indemnification for 
DOE contractors engaged in nuclear activities outside the 
United States from $100 million to $500 million.

Section 406. Reports

    Section 406 requires DOE and NRC to issue a report to 
Congress on the status of the Price-Anderson program by August 
2013.

Section 407. Inflation Adjustment

    Section 407 requires the NRC to adjust for inflation the 
standard deferred premium for NRC licensees every five years.

Section 408. Treatment of Modular Reactors

    Section 408 allows NRC to consider a combination of small 
modular reactors at one site to be a single facility for 
purposes of Price-Anderson indemnification.

Section 409. Applicability

    Section 409 clarifies that these amendments do not apply to 
a nuclear incident that occurs before the date of their 
enactment.

Section 410. Civil Penalties

    Section 410 ends the automatic remission of civil penalties 
for nuclear safety violations by DOE contractors that are 
nonprofit institutions and establishes a limit on such civil 
penalties not to exceed the total fees paid within one year to 
the nonprofit institution.

              Subtitle B--Deployment of New Nuclear Plants

Section 421. Short Title

    This section is self-explanatory.

Section 422. Definitions

    This section is self-explanatory.

Section 423. Responsibilities of the Secretary

    Section 423 allows the Secretary to provide financial 
assistance to supplement private sector financing for new 
nuclear power plants if it is determined that the plant is 
necessary to contribute to energy security, fuel or technology 
diversity, or clean air attainment goals. The Secretary 
prescribes terms and conditions for the program to protect the 
financial interests of the nation. Financial assistance shall 
not exceed 50 percent of the project costs. The total 
generating capacity eligible for assistance is 8400 megawatts.

Section 424. Regulations

    This section is self-explanatory.

      Subtitle C--Advanced Reactor Hydrogen Co-generation Project

Section 431. Project Establishment

    This section is self-explanatory.

Section 432. Project Definition

    Section 432 defines the Project to include research, 
development, design, construction and operation of a hydrogen 
production co-generation system using an advanced reactor to 
enable research and development on advanced reactors and on 
alternative approaches for hydrogen production. Any reactor 
studied must offer improved attributes over existing commercial 
reactors of: enhanced safety, reduced waste, enhanced 
efficiency, potential for enhanced economic viability and 
physical security, and increased proliferation resistance.

Section 433. Project Management

    Section 433 designates the Idaho National Engineering and 
Environmental Laboratory (INEEL) as the lead laboratory and 
requires a national steering committee be established to guide 
the program.

Section 434. Project Requirements

    Section 434 sets forth project requirements as follows: the 
industrial lead of the project must be a U.S. company, 
international cooperation must be sought, the overall project 
must demonstrate both electricity and hydrogen production, 
cost-shared partnerships with U.S. or international industry 
are encouraged, a system must be operational by 2010, the 
Secretary may waive DOE rule 413.3 to expedite project 
progress, up to two teams may be funded to develop competing 
designs, use of university test facilities is encouraged, the 
NRC must be involved to develop risk-based criteria for future 
licensing actions, and a comprehensive program plan is to be 
produced and updated annually. Selection of the final project 
design must maximize cost-sharing opportunities and minimize 
federal expenditures.
    The Committee anticipates that other national laboratories 
will participate and share in the development of the reactor, 
which will be constructed in Idaho.

Section 435. Authorization of Appropriations

    This section is self-explanatory.

                   Subtitle D--Miscellaneous Matters

Section 441. Uranium Sales and Transfers

    Section 441 limits annual deliveries of uranium from the 
government to 3,000,000,000 pounds of U\3\O\8\ equivalent 
annually through 2009, to 5,000,000 pounds in 2010 and 2011, 
7,000,000 pounds in 2012, and 10,000,000 pounds in subsequent 
years. It requires sales to be conducted through long-term 
contracts and establishes a preference for government transfer 
to entities employing recovery and extraction of uranium from 
contaminated uranium-bearing materials. Exemptions to the 
policy are allowed for sales or transfers to TVA in support of 
the nation's HEU or tritium needs, to research reactors, to 
replace up to 3,293 metric tons of the contaminated uranium 
provided to USEC prior to privatization, and to support an 
advanced commercial plant with nonstandard fuel requirements. A 
blanket exemption is provided for sale or transfer in response 
to an emergency resulting in disruption in supply of uranium to 
domestic users. Certification by the President is required 
prior to any sale or transfer to assure that the material is 
not needed for national security. The price paid to the 
Secretary for any sale cannot be less than fair market value. 
The Secretary must solicit views from the Department of State 
and National Security Council to assure that any sale will not 
adversely affect national security interests including 
implementation of the HEU arrangement. A report on 
implementation is required within 5 years, and biennially 
thereafter.

Section 442. Decommissioning Pilot Program

    Section 442 establishes a pilot program to decommission and 
decontaminate the sodium-cooled fast breeder experimental test-
site reactor in Arkansas and authorizes appropriation of 
$16,000,000.

                       TITLE V--RENEWABLE ENERGY

                     Subtitle A--General Provisions

Section 501. Assessment of Renewable Energy Resources

    Section 501 requires DOE to carry out periodic assessments 
of renewable energy resources available in the United States, 
available infrastructure and other relevant information, and 
requires annual reports.

Section 502. Renewable Energy Production Incentive

    Section 502 extends funding authorization for incentive 
programs for producing electricity from renewable energy 
sources, expands eligibility to cooperatives and municipal 
utilities, and includes landfill gas as an eligible energy 
resource. The section also provides that if funds are not 
available for full payments in a given calendar year, 60 
percent of available funds shall be assigned to solar, wind, 
geothermal, and closed-loop biomass.

Section 503. Renewable Energy on Federal Lands

    Section 503 requires the Secretary of the Interior, in 
consultation with DOE and USDA, to develop recommendations on 
development of renewable energy on specified public lands, and 
report to Congress. The section also requires the Secretary of 
the Interior to contract with the National Academy of Sciences 
to study potential for renewable energy development in Outer 
Continental Shelf areas, and report to Congress.

Section 504. Federal Purchase Requirement

    Section 504 requires the Federal Government to purchase not 
less than 3 percent renewable electric energy in fiscal years 
2005 through 2007, increasing to not less than 7.5 percent 
renewable electric energy in fiscal year 2011 and thereafter. 
The section also provides double credit for renewable electric 
energy produced and used on-site at a Federal facility, as well 
as for renewable energy produced on Federal or Indian lands and 
used at a Federal facility.

Section 505. Insular Area Renewable and Energy Efficiency Plans

    Section 505 requires the Secretary of Energy to update the 
energy surveys, estimates, and assessments in certain insular 
areas and is self-explanatory.

                  Subtitle B--Hydroelectric Licensing

Section 511. Alternative Conditions and Fishways

    Section 511 deals with alternatives to mandatory conditions 
or fishway prescriptions under sections 4(e) and 18 of the 
Federal Power Act and is self-explanatory.

                     Subtitle C--Geothermal Energy

Section 521. Competitive Lease Sale Requirements

    Section 521 directs the Secretary of the Interior to accept 
nominations for lands to be leased under the Geothermal Steam 
Act of 1970. The provision requires the Secretary to hold a 
competitive lease sale at least once every two years in States 
where there are nominations pending and where such lands are 
otherwise available for leasing. The section provides for non-
competitive leasing for a period of two years for lands for 
which a competitive sale was held but for which no competitive 
bids were received. The section addresses pending lease 
applications.

Section 522. Geothermal Leasing and Permitting on Federal Lands

    Section 522 requires the Secretaries of the Interior and 
Agriculture to enter into a Memorandum of Understanding 
regarding leasing and permitting for geothermal development on 
Federal lands under their respective jurisdictions. The MOU 
must identify known geothermal resources areas, require a 
review of management plans where necessary, and establish 
procedures for application processing. The section requires the 
establishment of a joint data retrieval system.

Section 523. Leasing and Permitting on Federal Lands Withdrawn for 
        Military Purposes

    Section 523 requires the Secretaries of the Interior and 
Defense to submit a joint report regarding differences in 
leasing and permitting procedures for geothermal development 
under the Geothermal Steam Act of 1970, administered by the 
Secretary of the Interior, and section 2689 of title 10, United 
States Code, administered by the Secretary of Defense, and 
procedures for interagency coordination. The report will also 
provide recommendations for legislative or administrative 
actions that could facilitate program administration, including 
a common royalty structure.

Section 524. Reinstatement of Leases Terminated for Failure to Pay Rent

    Section 524 authorizes the Secretary to reinstate leases 
terminated after an inadvertent failure to pay rental payments.

Section 525. Royalty Reduction and Relief

    Section 525 requires the Secretary of the Interior to 
promulgate regulations that simplify the methodology of 
determining the royalties for geothermal production. The 
Secretary is required to consider the use of a percent of 
revenue method and to ensure that the final rule will result in 
the same level of royalty revenues as the regulation in effect 
on the date of enactment of the section. The section requires 
that with respect to the direct use of low temperature 
geothermal resources for purposes other than the generation of 
electricity, the Secretary establish a schedule of fees and 
collect fees pursuant to the schedule in lieu of a royalty.

                       Subtitle D--Biomass Energy

Section 531. Definitions

    This section is self-explanatory.

Section 532. Biomass Commercial Utilization Program

    Section 532 authorizes a grant program to help offset the 
cost of purchasing certain biomass from Federal or Indian lands 
for electricity, heat, transportation fuels, or petroleum-based 
product substitutes. Grants are limited to no more than $20 per 
green ton of biomass delivered.

Section 533. Improved Biomass Utilization Grant Program

    Section 533 authorizes grants to encourage the use of 
biomass within communities located near areas of Federal lands 
that are at significant risk to catastrophic wildfire, disease 
or insect infestation, with individual grants limited to no 
more than $500,000.

Section 534. Report

    Three years after the date of enactment, the Secretaries of 
the Interior and Agriculture will prepare and submit a joint 
report to Congress that describes the interim results of the 
program. The report will include, at minimum, information 
identifying the amount and types of acres from which biomass 
was purchased with grant funds; a description of the types of 
biomass purchased with grant funds and the relative quantities 
of each type; the types of contracts utilized to transfer 
ownership of the biomass from federal or Indian ownership; the 
uses of the biomass; a description of the proposals for 
improved use of biomass and their results; a list of grant 
recipients; a list of eligible operations; a list of 
participating communities; and an evaluation of the economic 
and environmental benefits, if any, that result from the grants 
awarded under this subtitle.

                      TITLE VI--ENERGY EFFICIENCY

                      Subtitle A--Federal Programs

Section 601. Energy Management Requirements

    Section 601 changes the baseline for measuring Federal 
energy performance from 1985 to 2000 and requires a 20 percent 
improvement over 2000 levels by 2013. The section provides 
exclusions from these requirements under certain conditions and 
directs the Secretary to issue guidelines that establish 
criteria for excluding buildings from these requirements. 
Agencies are authorized to retain funds appropriated for energy 
expenditures that are not spent because of energy savings in 
agency buildings and to use those funds for energy efficiency 
and renewable energy projects.

Section 602. Energy Use Measurement and Accountability

    Section 602 requires Federal buildings to be metered or 
sub-metered by October 1, 2010, using advanced meters, to the 
maximum extent practicable. Agencies must also develop plans to 
use real-time electricity consumption data to reduce energy 
costs and consumption.

Section 603. Federal Building Performance Standards

    Section 603 directs the Secretary to establish new energy 
efficiency performance standards for new Federal buildings. 
Such standards shall require that new building achieve energy 
consumption levels at least 30 percent below specified building 
codes and incorporate sustainable design principles.

Section 604. Energy Savings Performance Contracts

    Section 604 permanently extends existing authority provided 
to Federal agencies to contract with energy service companies 
to assume the capital costs of installing energy and water 
conservation equipment and renewable energy systems in Federal 
facilities or buildings, and recover costs and profit from 
associated energy cost savings over the term of the contract. 
The section expands use of Energy Savings Performance Contracts 
(ESPCs) to cover replacement of existing Federal buildings or 
facilities with new, more energy-efficient buildings or 
facilities and expands the definition of energy savings to 
include a reduction in water costs. The section also includes 
authorization for a pilot program for up to 10 ESPC contracts 
to be used for ``non-building applications'' such as vehicles 
or electric power generation, provided that the aggregate cost 
of projects under the pilot program does not exceed $100 
million.

Section 605. Procurement of Energy Efficient Products

    Section 605 directs agencies to procure, with specified 
exceptions, Energy Star or FEMP-designated energy efficient 
products and requires agencies to select only premium 
efficiency motors.

Section 606. Congressional Building Efficiency

    Section 606 directs the Architect of the Capitol to develop 
an energy and water conservation plan for Congressional 
buildings to comply with energy efficiency standards applicable 
to other Federal buildings.

Section 607. Increased Federal Use of Recovered Mineral Components

    Section 607 amends the Solid Waste Disposal Act to provide 
for increased use of recovered mineral components in Federally 
funded projects involving procurement of cement or concrete and 
requires the EPA Administrator to report to Congress on the 
potential energy savings and environmental benefits that may be 
realized from implementation of existing procurement 
requirements.

Section 608. Utility Energy Service Contracts

    Section 608 amends the National Energy Conservation Policy 
Act to encourage Federal agencies to participate in utility 
services programs to improve energy efficiency, conserve water, 
or manage electricity demand.

Section 609. Study of Energy Efficiency Standards

    Section 609 requires the Secretary of Energy to contract 
with the National Academy of Sciences to study the means by 
which energy efficiency standards are determined and the 
relative merits of measurement of energy use and efficiency at 
the point of energy use versus over the full fuel cycle.

                  Subtitle B--State and Local Programs

Section 611. Low Income Community Energy Efficiency Pilot Program

    Section 611 authorizes $20 million for each of fiscal years 
2004 through 2006 to make grants to local governments, 
community development corporations, and Indian tribes for 
energy efficiency and renewable energy projects (including 
electric thermal storage technology) in low-income urban and 
rural communities.

Section 612. Energy Efficient Public Buildings

    Section 612 authorizes the Secretary of Energy to make 
grants to States to assist local governments to improve energy 
efficiency and environmental quality of public buildings. The 
section also authorizes such sums as may be necessary for 
fiscal years 2003 through 2012, with not more than 30 percent 
for administration.

Section 613. Energy Efficient Appliance Rebate Programs

    Section 613 authorizes DOE to provide funds to States with 
rebate programs for consumers who exchange inefficient 
appliances for new, energy efficient units.

                     Subtitle C--Consumer Products

Section 621. Energy Conservation Standards for Additional Products

    Section 621 establishes test procedures for illuminated 
exit signs, low-voltage dry-type distribution transformers, 
traffic signal modules, and medium base compact fluorescent 
lamps; requires the Secretary of Energy to prescribe test 
procedures for ceiling fans, vending machines, commercial 
refrigerators and freezers and to prescribe definitions and 
test procedures for measurement of energy consumption of 
battery chargers and external power supplies in standby mode 
and, within three years, to determine whether to issue energy 
conservation standards for such products; and requires the 
Secretary to consider in a public hearing additional covered 
products to receive energy conservation standards limiting 
standby mode energy consumption. The section requires 
rulemakings to establish standards for three products and 
establishes standards for six others. It also provides that 
existing State and local standards for a product covered by 
this section are not preempted until the standard for such 
product goes into effect.

Section 622. Energy Labeling

    Section 622 directs the Federal Trade Commission to 
complete a rulemaking within two months to determine the 
effectiveness of the existing labeling FTC labeling program and 
directs the Secretary of Energy or the FTC to prescribe 
labeling requirements for battery chargers and external power 
supplies in standby mode, ceiling fans, vending machines, 
commercial refrigerators and freezers, exit signs, torchiere 
lamps, low-voltage dry-type distribution transformers, traffic 
signal modules, unit heaters, and medium base compact 
fluorescent lamps, if standards are set by rule or by statute 
in the previous section.

Section 623. Energy Star Program

    Section 623 provides statutory authority for the Energy 
Star program at DOE and EPA; requires solicitation of comments 
from interested parties prior to establishment of new Energy 
Star categories, specifications or criteria, and publication of 
a notice of any changes to categories, specifications or 
criteria along with responses to such comments; allows 12 
months of lead time before such changes take effect unless such 
time period is waived or reduced by mutual consent between EPA 
or DOE and the affected parties.

Section 624. HVAC Maintenance Consumer Education Program

    Section 624 authorizes DOE, in cooperation with EPA, to 
carry out a cost-shared public education program on energy 
savings benefits of maintenance of air conditioning, heating 
and ventilation systems and authorizes the Small Business 
Administration to work with the DOE and EPA to provide energy 
efficiency information to small businesses.

                       Subtitle D--Public Housing

Section 631. Capacity Building for Energy-efficient, Affordable Housing

    Section 631 requires activities that provide energy 
efficient, affordable housing and residential energy 
conservation measures under the HUD Demonstration Act.

Section 632. Increase of CDBG Public Services Cap for Energy 
        Conservation and Efficiency Activities

    Section 632 increases the amount of Community Development 
assistance for providing public services involving energy 
conservation or efficiency by 10 percent.

Section 633. FHA Mortgage Insurance Incentives for Energy Efficient 
        Housing

    Section 633 provides for additional 10 percent increase in 
property value covered by Federal Housing Administration 
mortgage insurance when a solar energy system is installed.

Section 634. Public Housing Capital Fund

    Section 634 allows the Public Housing Capital Fund to 
include use for certain improvements for energy efficiency, 
including integrated utility management and capital planning 
and third party contracts similar to Energy Savings Performance 
Contracts (ESPCs).

Section 635. Grants for Energy-conserving Improvements for Assisted 
        Housing

    Section 635 allows grants for multifamily housing projects 
to be used for improved energy efficiency.

Section 636. North American Development Bank

    Section 636 amends NAFTA Implementation Act to encourage 
U.S. Board members to encourage the Bank to finance projects 
related to clean and efficient energy, including energy 
conservation.

Section 637. Energy-efficient Appliances

    Section 637 requires public housing agencies to purchase 
Energy Star or FEMP-designated products where cost-effective.

Section 638. Energy Efficiency Standards

    Section 638 updates efficiency standards used in Cranston-
Gonzalez low-income housing programs to current best codes and 
practices.

Section 639. Energy Strategy for HUD

    Section 639 requires HUD to develop and implement an 
integrated energy strategy for public and assisted housing and 
requires report to Congress and updates of report every two 
years.

                    TITLE VII--TRANSPORTATION FUELS

                 Subtitle A--Alternative Fuel Programs

Section 701. Use of Alternative Fuels by Dual-fueled Vehicles

    Section 701 requires alternative-fueled vehicles acquired 
by Federal agencies to be operated on alternative fuel unless 
the Secretary determines that the alternative fuel is not 
reasonably available or unreasonably more expensive compared to 
gasoline.

Section 702. Fuel Use Credits

    Section 702 amends the Energy Policy Act of 1992 to allow 
Federal fleets or covered persons to earn credits towards 
compliance with alternative fuel vehicle purchase mandates by 
using alternative fuels in medium- and heavy-duty vehicles. One 
credit is awarded for each volume used of alternative fuel 
equivalent in energy content to 450 gallons of biodiesel or 
greater amount if determined by rule. Credits are bankable from 
one year to the next, and tradeable to someone else. The 50 
percent cap on use of fuel credits in any one year is removed.

Section 703. Neighborhood Electric Vehicles

    Section 703 includes zero-emission, low-speed electric 
vehicles in the definition of alternative fuel vehicles under 
the Energy Policy Act of 1992, provided that such vehicles have 
a top speed not greater than 25 miles per hour.

Section 704. Credits For Medium and Heavy Duty Vehicles

    Section 704 allows Federal fleets or covered persons to 
earn multiple credits towards compliance with alternative fuel 
vehicle purchase mandates through the purchase of medium-duty 
vehicles (greater than 8,500 lbs. gross vehicle weight, 2 
credits) or heavy-duty vehicles (greater than 14,000 lbs. gross 
vehicle weight, 3 credits).

Section 705. Alternative Fuel Infrastructure

    Section 705 allows Federal fleets or covered persons to 
earn credits towards compliance with alternative fuel vehicle 
purchase mandates through investment in alternative fuel 
infrastructure, including fueling stations and distribution 
lines.

Section 706. Incremental Cost Allocation

    Section 706 requires the General Services Administration to 
allocate the incremental cost of alternative fueled vehicles 
compared to comparable gasoline vehicles across the entire 
fleet of motor vehicles distributed by the GSA, instead of on a 
vehicle-by-vehicle basis.

Section 707. Review of Alternative Fuel Programs

    Section 707 requires the Secretary of Energy to conduct a 
study that determines the impact of alternative fuel vehicle 
programs in the Energy Policy Act of 1992 on development of 
technologies for use of alternative fuels, availability of 
fuel, and cost of alternative fueled vehicles.

Section 708. High Occupancy Vehicle Exception

    Section 708 allows State highway agencies to establish 
procedures for allowing alternative fuel vehicles to utilize 
High Occupancy Vehicle lanes on highways regardless of the 
number of passengers carried.

Section 709. Alternative Compliance

    Section 709 provides any person covered by section 501 and 
any State subject to the requirements of section 507(o) to opt 
out of the Energy Policy Act of 1992. The section also provides 
credits under the Energy Policy Act of 1992 for hybrid 
vehicles, dedicated alternative fuel vehicles and 
infrastructure and allows the blending of lease condensate gas 
liquids from natural gas wells with diesel fuel to manufacture 
an alternative fuel.

                  Subtitle B--Automobile Fuel Economy

Section 711. Automobile Fuel Economy Standards

    Section 711 requires the Secretary of Transportation to 
also consider effects on motor vehicle and passenger safety, 
and effects on levels of U.S. employment when setting fuel 
economy standards. The section also clarifies DOT authority to 
amend fuel economy standards for passenger cars and requires an 
environmental assessment under NEPA to be conducted for any 
changes in fuel economy standards.

Section 712. Dual Fueled Automobiles

    Section 712 extends for an additional four years the 
manufacturer incentives and maximum fuel economy increase 
allowable under the Corporate Average Fuel Economy program for 
the manufacture and sale of dual fueled automobiles.

Section 713. Federal Fleet Fuel Economy

    Section 713 requires Federal agencies to increase fuel 
economy of new Federal fleet passenger cars and light trucks by 
at least 3 miles per gallon by 2005 compared to year 1999 
acquisitions.

Section 714. Railroad Efficiency

    Section 714 requires establishment of a cost-shared public-
private partnership to improve fuel economy, reduce emissions 
and lower costs of operation of railroad locomotives. It 
authorizes $25 million in fiscal year 2004, $35 million in 
fiscal year 2005, and $50 million in fiscal year 2006.

Section 715. Reduction of Engine Idling in Heavy-Duty Vehicles

    Section 715 requires DOE, in consultation with DOT and EPA, 
to study potential technologies to reduce the idling of engines 
in heavy-duty vehicles and, upon completion of such study, 
publish a list of certified technologies in the Federal 
Register. It increases vehicle weight limits for heavy-duty 
vehicles to allow for installation of such technologies 
provided they are less than 400 pounds additional weight.

                          TITLE VIII--HYDROGEN

                  Subtitle A--Basic Research Programs

Section 801. Short Title

    This section is self-explanatory.

Section 802. Matsunaga Act Amendment

    Section 802 provides a complete substitute for the Spark M. 
Matsunaga Hydrogen Research, Development, and Demonstration Act 
of 1990 (42 U.S.C. 12401 et seq.), authorizes basic research 
and development activities related to hydrogen energy, fuel 
cells and related infrastructure.

Section 803. Hydrogen Transportation and Fuel Initiative

    Section 803 authorizes applied research, development, 
demonstration and commercial application activities on advanced 
hydrogen-powered vehicle technologies, and related activities 
needed to enable rapid and coordinated introduction of 
hydrogen-powered vehicles and associated infrastructure into 
commerce. Activities under these programs must be coordinated 
with basic research activities conducted under the Matsunaga 
Act.

Section 804. Interagency Task Force and Coordination Plan

    Section 804 requires the Secretary of Energy to establish 
an interagency task force to coordinate Federal activities in 
the area of hydrogen energy, fuel cells, and related 
technologies and requires the task force to develop and submit 
to Congress a coordination plan within one year of 
establishment.

Section 805. Review by the National Academies

    Section 805 requires the National Academies to review 
Federal hydrogen energy programs and activities within two 
years of enactment, and every four years thereafter.

                   Subtitle B--Demonstration Programs

Section 811. Definitions

    This section is self-explanatory.

Section 812. Hydrogen Vehicle Demonstration Program

    Section 812 requires the Secretary of Energy to establish a 
demonstration and commercial application program for hydrogen-
powered vehicles and associated hydrogen fueling infrastructure 
in a variety of applications, including fleets of light- and 
heavy-duty vehicles, transit buses, refueling corridors, and 
other similar projects.

Section 813. Stationary Fuel Cell Demonstration Program

    Section 813 requires the Secretary of Energy to establish a 
demonstration and commercial application program for stationary 
hydrogen fuel cells, including applications in residential and 
commercial buildings, portable applications, small form and 
micro fuel cells, and for distributed generation from renewable 
energy and other similar projects.

Section 814. Hydrogen Demonstrations in National Parks

    Section 814 requires the Secretary of the Interior and the 
Secretary of Energy to jointly study opportunities to use 
hydrogen fuel cells and other related technologies in national 
parks and authorizes $1 million in fiscal year 2004 for such 
study, and $15 million in fiscal year 2005 for not fewer than 3 
geographically distributed pilot projects.

Section 815. International Demonstration Program

    Section 815 requires the Secretary of Energy to establish a 
demonstration program for fuel cells and related hydrogen 
technologies for stationary or transportation applications in 
countries other than the United States.

Section 816. Tribal Stationary Hybrid Power Demonstration

    Section 816 requires the Secretary to develop and transmit 
to Congress a strategy for a demonstration and commercial 
application program to develop hybrid systems combining 
distributed renewable generation with fuel cells for use on 
Indian land. The section also authorizes $1 million in fiscal 
year 2005 for the study and $5 million in each of fiscal years 
2006 through 2008 for the demonstration program.

Section 817. Distributed Generation Pilot Program

    Section 817 requires the Secretary of Energy to establish a 
demonstration program to develop, deploy and commercialize 
distributed generation systems that significantly reduce the 
cost of producing hydrogen from renewable energy.

                      Subtitle C--Federal Programs

Section 821. Public Education and Training

    Section 821 requires the Secretary of Energy to establish 
programs designed to increase public interest and acceptance of 
hydrogen fuel technologies, and to provide university-based 
training for research in critical hydrogen and fuel cell-
related technologies.

Section 822. Hydrogen Transition Strategic Planning

    Section 822 requires the head of each Federal agency with 
an annual outlay of $20 million or less to submit to OMB and 
the Congress a hydrogen transition plan, describing areas in 
which use of hydrogen energy technologies could benefit the 
operation of the agency and any impediments that may prevent 
the agency from using such hydrogen energy technologies.

Section 823. Minimum Federal Fleet Requirement

    Section 823 amends the Energy Policy Act of 1992 to require 
each agency to purchase 5 percent of its new vehicles as 
hydrogen-powered vehicles in fiscal years 2006 and 2007, 
increasing to 20 percent for fiscal years 2012 and thereafter. 
The section also provides for waiver, delay, or reduction in 
mandated requirements if hydrogen-powered vehicles are not 
available at less than 150 percent of the cost of a comparable 
alternative fueled vehicle. The Secretary of Energy, in 
consultation with the GSA Administrator, may opt to implement 
the fleet requirement by allocation of acquisitions to certain 
Federal fleets. Commercial refueling arrangements are required 
where possible.

Section 824. Stationary Fuel Cell Purchase Requirement

    Section 824 requires the Federal Government to offset not 
less than 1 percent of its total electric energy consumption 
from fuel cells in fiscal years 2006 through 2008, increasing 
to not less than 3 percent in 2011 and thereafter. The section 
also authorizes $400 million over five years to offset costs to 
Federal agencies.

Section 825. Department of Energy Strategy

    Section 825 requires the Secretary of Energy to publish and 
submit to Congress a plan to identify critical technologies and 
related targets and timetables for development of such 
technologies to support commercialization of hydrogen-fueled 
fuel cell vehicles.

                   TITLE IX--RESEARCH AND DEVELOPMENT

Section 901. Short Title

    Section 901 designates the title as the ``Energy Research, 
Development, Demonstration, and Commercial Application Act of 
2003''.

Section 902. Goals

    Section 902 defines broad goals and requires the Secretary 
of Energy to publish specific goals with each annual budget 
submission.

Section 903. Definitions

    This section is self-explanatory.

                     Subtitle A--Energy Efficiency

Section 911. Energy Efficiency

    This section sets authorization levels and is self-
explanatory.

Section 912. Next Generation Lighting Initiative

    Section 912 authorizes a new initiative to develop advanced 
solid state lighting options through research, development, 
demonstration, and commercial application activities. A 
definition regarding the selection of an Industry Alliance to 
assist in updating roadmaps and assessing progress of the 
Initiative is provided within this section.

Section 913. National Building Performance Initiative

    Section 913 authorizes the Director of Office of Science 
and Technology Policy (OSTP) to establish an interagency 
program to address energy conservation and R&D efforts to 
reduce energy use in buildings. An advisory committee is 
established to oversee creation and implementation of a plan, 
and requires annual progress reports.

Section 914. Secondary Electric Vehicle Battery Use Program

    Section 914 authorizes a program to evaluate secondary use 
of electric vehicle batteries through research, development, 
demonstration, and commercial application activities.

Section 915. Energy Efficiency Science Initiative

    Section 915 authorizes a research program administered by 
the Assistant Secretary responsible for energy conservation.

       Subtitle B--Distributed Energy and Electric Energy Systems

Section 921. Distributed Energy and Electric Energy Systems

    Section 921 provides authorization levels and is self-
explanatory.

Section 922. Hybrid Distributed Power Systems

    Section 922 authorizes the development of a strategy for 
the development of hybrid distributed power systems that 
combine a renewable technology and non-intermittent power 
generation technologies.

Section 923. High Power Density Industry Program

    Section 923 authorizes the creation of a research and 
demonstration program for high power density facilities.

Section 924. Micro-Cogeneration Energy Technology

    Section 924 authorizes grants to consortia to develop 
small-scale combined heat and power systems for residential 
applications.

Section 925. Distributed Energy Technology Demonstration Program

    Section 925 authorizes assistance to demonstration projects 
using distributed energy technologies in highly energy 
intensive commercial applications.

Section 926. Office of Electric Transmission and Distribution

    Section 926 amends title II of the Department of Energy 
Organization Act to create a new Office of Electric 
Transmission and Distribution.

Section 927. Electric Transmission and Distribution Programs

    Section 927 authorizes research, development and 
demonstration programs to ensure reliability, efficiency and 
environmental integrity of electrical transmission systems and 
requires a 5-year program plan to be completed within the first 
year. This section authorizes a Power Delivery Research 
Initiative focused on establishing test beds at national 
laboratories, universities, or in industry, to evaluate and 
demonstrate the technologies required to move high temperature 
superconductivity into commercial use. A Transmission and 
Distribution Grid Planning and Operations Initiative for 
research, development and demonstration of tools to plan, 
operate, and expand transmission and distribution grids in 
realistic market scenarios is authorized and this initiative 
shall use a distributed research center involving universities 
and national laboratories with a focus on transfer of useful 
technologies to industry.

                      Subtitle C--Renewable Energy

Section 931. Renewable Energy.

    Section 931 provides authorization levels and is self-
explanatory.

Section 932. Bioenergy Programs

    Section 932 authorizes a broad program of research in 
biopower, biofuels and bioproducts, including technologies 
utilizing cellulosic feedstocks or enzyme-based processing.

Section 933. Biodiesel Engine Testing Program

    Section 933 authorizes testing to determine the impact of 
biodisel on current and future emission control technologies 
and requires a report within 2 years on the findings of the 
study.

Section 934. Concentrating Solar Power Research Program

    Section 934 authorizes a program of research on 
concentrating solar power research to establish technologies 
and economics of both electricity and hydrogen production. A 
report with recommendations for future research is required 
within 4 years.

Section 935. Miscellaneous Projects

    Section 935 authorizes research and development in ocean 
energy, combining renewable and other energy sources, and 
hydrogen carrier fuels.

                       Subtitle D--Nuclear Energy

Section 941. Nuclear Energy

    Section 941 provides authorization levels and is self-
explanatory.

Section 942. Nuclear Energy Research Programs

    Section 942 authorizes the Nuclear Energy Research 
Initiative, Nuclear Energy Plant Optimization, Nuclear Power 
2010, Generation IV Nuclear Energy Systems, Reactor Production 
of Hydrogen, and Nuclear Infrastructure Support Programs.

Section 943. Advanced Fuel Cycle Initiative

    Section 943 authorizes the Advanced Fuel Cycle Initiative 
to evaluate proliferation-resistant fuel recycling and 
transmutation technologies, which support evaluation of 
alternative national strategies for spent fuel management and 
Generation IV advanced reactor concepts. An annual progress 
report is required.

Section 944. University Nuclear Science and Engineering Support

    Section 944 authorizes fellowship and faculty assistance 
programs, maintains university research and training reactor, 
and encourages university-national laboratory interactions.

Section 945. Security of Nuclear Facilities

    Section 945 authorizes research and development on 
technologies for improving safety and security of reactors.

Section 946. Alternatives to Industrial Radioactive Sources

    Section 946 authorizes research and development on 
alternatives to large industrial radioactive sources, including 
well-logging sources, that reduce safety, environmental, or 
proliferation risks. A survey and report to Congress are 
required of existing types of commercial sources, along with 
review of available disposal options for such sources and 
evaluation of the need for alternative future disposal options.

                       Subtitle E--Fossil Energy

Section 951. Fossil Energy

    Section 951 provides authorization levels and is self-
explanatory.

Section 952. Fossil Energy Research Programs

    Section 952 authorizes research programs for coal, oil and 
gas, and fuel cells and requires a report at two year intervals 
on oil and gas reserves off the coast of Louisiana and Texas. 
It establishes a national center or consortium of excellence in 
clean energy and power generation.

Section 953. Research and Development for Coal Mining Technologies

    Section 953 authorizes research and development program on 
coal mining technologies. The research is to be guided by the 
Mining Industry of the Future program, and NAS reports, and is 
to include technologies to enable mining of coal with reduced 
contaminant levels.

Sec. 954. Coal and Related Technologies Program

    Section 954 authorizes a broad research, development, 
demonstration and commercial application program for coal and 
power systems and requires the Secretary to identify goals for 
coal-based technologies.

Sec. 955. Complex Well Technology Testing Facility

    Section 955 is self-explanatory.

                          Subtitle F--Science

Section 961. Science

    Section 961 establishes authorization levels for Office of 
Science and authorizes funding for the International 
Thermonuclear Experimental Reactor separate from the rest of 
the Office of Science budget.

Section 962. United States Participation in ITER

    Section 962 authorizes the U.S. participation in the 
International Thermonuclear Experimental Reactor (ITER) and 
requires a comprehensive report within 180 days on overall 
program directions.

Section 963. Spallation Neutron Source

    Section 963 sets limits on total funds expended for the 
Spallation Neutron Source and requires a report on the SNS as 
part of the annual budget submission.

Section 964. Support for Science and Energy Facilities and 
        Infrastructure

    Section 964 requires the development and implementation of 
a strategy for maintaining or building essential facilities and 
infrastructure primarily supporting programs at the Office of 
Science, the Office of Energy Efficiency and Renewable Energy, 
the Office of Fossil Energy, or the Office of Nuclear Energy, 
Science and Technology.

Section 965. Catalysis Research Program

    Section 965 authorizes a broad research and development 
program for catalysis science including use of precious metals 
and requires National Academy of Science review every 3 years.

Section 966. Nanoscale Science and Engineering Research

    Section 966 authorizes nanoscale science and engineering 
programs supportive of the Department's mission areas and 
authorizes construction of Nanoscience and Nanoengineering 
Research Centers.

Section 967. Advanced Scientific Computing for Energy Missions

    Section 967 authorizes a robust scientific computing 
program supporting the Department's mission areas and requires 
coordination with other national efforts, including the 
National Nuclear Security Administration's Accelerated 
Strategic Computing Initiative. A report to Congress is 
required before undertaking development of new computational 
architectures. The High-Performance Computing Act of 1991 is 
amended to include authorization levels as necessary for fiscal 
years 2004 through 2007.

Section 968. Genomes to Life Program

    Section 968 authorizes research and development in systems 
biology and proteomics toward understanding biological systems 
on the scale of proteins to cells and authorizes construction 
and ancillary equipment for the Genomes to Life user 
facilities.

Section 969. Fission and Fusion Energy Materials Research Program

    Section 969 authorizes a research and development program 
on material science issues presented by advanced fission 
reactors and Department's fusion program.

Section 970. Energy-Water Supply Technologies Program

    Section 970 authorizes a research and demonstration program 
to study energy-related issues associated with water resources 
and issues associated with sustaining water supplies for energy 
production. Program topics shall include arsenic removal, 
desalination, and energy and water sustainability. The arsenic 
removal program is to be run by the American Water Works 
Association Research Foundation for the Department. 
Desalination program is to follow the national Desalination and 
Water Purification Technology Roadmap in partnership with the 
U.S. Bureau of Reclamation. The sustainability program supports 
water modeling studies, on the level of major national river 
basins, to understand water usage patterns and the impact of 
energy production activities in these basins.

                   Subtitle G--Energy and Environment

Section 971. United States-Mexico Energy Technology Cooperation

    Section 971 authorizes a joint U.S.-Mexico collaborative 
program in the border region to promote energy efficiency and 
reduced environmental risks that contribute to public health 
issues.

Section 972. Coal Technology Loan

    Section 972 authorizes the Secretary to provide a loan to 
the clean coal plant in Healy, Alaska.

                         Subtitle H--Management

Section 981. Availability of Funds

    Section 981 authorizes funding under entire title to remain 
available until expended.

Section 982. Cost Sharing

    Section 982 sets cost sharing requirements for programs (20 
percent for R&D, 50 percent for Demonstration and Commercial 
Application) with ability to the Secretary to waive this 
requirement and allows in-kind contributions.

Section 983. Merit Review of Proposals

    Section 983 requires merit review of proposals in this 
title.

Section 984. External Technical Review of Departmental Programs

    Section 984 requires advisory boards for Department 
programs and authorizes the Secretary to use the National 
Academy of Sciences to establish such boards and to conduct 
other reviews and assessments of programs and goals on at least 
5-year intervals.

Section 985. Improved Coordination of Technology Transfer Activities

    Section 985 requires the Secretary to appoint a Technology 
Transfer Coordinator and establishes a Tech Transfer Working 
Group with representation from each DOE facility.

Section 986. Technology Infrastructure Program

    Section 986 requires the Secretary to establish a pilot 
program to encourage the creation of technology clusters in 
support of departmental mission areas and authorizes 
$10,000,000 annually for FY2004, FY2005 and FY2006.

Section 987. Small Business Advocacy and Assistance

    Section 987 requires each National Laboratory and enables 
each single purpose research facility to designate a small 
business advocate to facilitate participation of small 
businesses in procurement and research opportunities. Small 
business technical assistance grants are authorized, but will 
not exceed $10,000 each to improve a concern's products or 
services and authorizes $5,000,000 annually.

Section 988. Mobility of Scientific and Technical Personnel

    Section 988 requires a report on barriers that may exist to 
inhibit transfer of personnel among Department's facilities and 
laboratories.

Section 989. National Academy of Sciences Report

    Section 989 requires a National Academy study on obstacles 
to accelerating the transition of energy technology into 
commercial application.

Section 990. Outreach

    Section 990 requires that all programs include an outreach 
component to provide the public with information.

Section 991. Competitive Award of Management Contracts

    Section 991 requires that management and operating 
contracts for nonmilitary laboratories shall be subject to 
competition unless the Secretary grants a waiver and informs 
Congress.

Section 992. Reprogramming

    Section 992 states that reprogramming that changes an 
individual distribution by more than 5 percent is not allowed 
unless the Secretary has provided 30 days notice to the 
appropriate authorizing committees.

Section 993. Construction with Other Laws

    Section 993 requires the Secretary to conform this title to 
existing laws.

Section 994. Improved Coordination and Management of Civilian Science 
        and Technology

    Section 994 amends the Department of Energy Organization 
Act to establish an additional Under Secretary designated as 
the Under Secretary for Science and Energy. The Office of 
Science shall now be headed by the Assistant Secretary for 
Science instead of a Director. An additional Assistant 
Secretary position is created, accompanied by a sense of 
Congress that leadership in nuclear energy shall be at 
Assistant Secretary level. Sections 5314 and 5315 of title 5, 
United States Code, are amended to show 3, instead of 2, Under 
Secretaries of Energy and 8, instead of 6, Assistant 
Secretaries of Energy.

Section 995. Educational Programs in Science and Mathematics

    Section 995 amends the Department of Energy Science 
Education Enhancement Act (42 U.S.C. 7381a) to authorize the 
Department of Energy to support competitive science and 
mathematics events and reauthorizes funding of that Act for 
$40,000,000 for each of fiscal years 2004 through 2008.

Section 996. Other Transactions Authority

    Section 996 amends the Department of Energy Organization 
Act (42 U.S.C. 7256) to allow transactions by the Secretary of 
Energy to further research, development, or demonstrations and 
exempts them from provisions of section 9 of the Federal 
Nonnuclear Energy Research and Development Act of 1974 (42 
U.S.C. 5908). These other transactions can only be entered if 
standard contract, grant or cooperative agreements are not 
feasible or appropriate. The amendment also allows the 
Secretary to protect from disclosure certain business 
information for up to 5 years and requires that the Secretary 
develop guidelines within 3 months for using the other 
transactions mechanism.

Section 997. Report on Research and Development Program Evaluation 
        Methodologies

    Section 997 requires the Secretary within 6 months to 
arrange with the National Academy of Sciences to investigate 
and report on the scientific and technical merits of any 
evaluation methodology for scientific and technical programs of 
the Department then to submit this report to Congress within 6 
months of its receipt.

                    TITLE X--PERSONNEL AND TRAINING

Section 1001. Workforce Trends and Traineeship Grants

    Section 1001 requires the Department of Energy, in 
consultation with the Department of Labor, to monitor workforce 
trends in the energy industry and report to Congress. 
Authorizes the Department of Energy, in consultation with the 
Department of Labor, to establish traineeship grants to address 
shortages of trained personnel.

Section 1002. Research Fellowships in Energy Research

    Section 1002 authorizes the Secretary of Energy to 
establish fellowships for postdoctoral and senior researchers 
in energy research and development fields.

Section 1003. Training Guidelines for Electric Energy Industry 
        Personnel

    Section 1003 requires the Secretary of Labor, in 
consultation with the Secretary of Energy, to develop, jointly 
with the electric industry and recognized employee 
representatives, model personnel training guidelines to support 
electric system reliability and safety.

Section 1004. National Center on Energy Management and Building 
        Technologies

    Section 1004 requires the Secretary of Energy to support 
the establishment of a National Center on Energy Management and 
Building Technologies, to carry out research, education, and 
training activities to facilitate the improvement of energy 
efficiency and indoor air quality in industrial, commercial, 
and residential buildings.

Section 1005. Improved Access to Energy-related Scientific and 
        Technical Careers

    Section 1005 requires the Director of each National 
Laboratory, and, at the discretion of the Secretary of Energy, 
each science facility operated by the Department, to take 
actions to increase the participation of historically Black 
colleges or universities, Hispanic-serving institutions, or 
tribal colleges in activities that improve these institutions' 
ability to train students in scientific and technical careers.

Section 1006. National Power Plant Operations Technology and Education 
        Center

    Section 1006 requires the Secretary of Energy to support 
the establishment of a national training center to address the 
need for training and educating certified operators for 
electric power generation plants.

Section 1007. Federal Mine Inspectors

    Section 1007 requires the Secretary of Labor to hire, 
train, and deploy additional skilled mine inspectors to 
maintain the number of Federal mine inspectors at or above the 
levels authorized by law or established by regulation.

                         TITLE XI--ELECTRICITY

Section 1101. Definitions

    Section 1101 amends definitions used in the Federal Power 
Act (FPA).

                        Subtitle A--Reliability

Section 1111. Electric Reliability Standards

    Section 1111 provides procedures for Federal Energy 
Regulatory Commission's (FERC) certification and oversight of a 
FERC approved electric reliability organization that sets 
mandatory, enforceable reliability rules for the interstate 
transmission grid.

                      Subtitle B--Regional Markets

Section 1121. Implementation Date for Proposed Rulemaking on Standard 
        Market Design

    Section 1121 remands the proposed rulemaking on Standard 
Market Design (Docket No. RM01-12-000) to FERC for further 
reconsideration and prohibits FERC from issuing a final rule or 
any order of general applicability dealing with matters within 
the scope of the proposed rule before July 1, 2005.

Section 1122. Sense of the Congress on Regional Transmission 
        Organizations

    Section 1122 provides a sense of Congress that voluntary 
Regional Transmission Organizations (RTO) promote competitive 
markets and benefit consumers.

Section 1123. Federal Utility Participation in Regional Transmission 
        Organizations

    Section 1123 authorizes power marketing agencies and the 
Tennessee Valley Authority (TVA) to join RTOs.

Section 1124. Regional Consideration of Competitive Wholesale Markets

    Section 1124 directs FERC to convene regional discussions 
with States to address wholesale competitive markets with a 
focus on issues such as RTO development, interconnection, 
transmission planning, price signals, seams, and market 
monitoring.

   Subtitle C--Improving Transmission Access and Protecting Service 
                              Obligations

Section 1131. Service Obligation Security and Parity

    Section 1131 amends the FPA to protect transmission access 
for load serving entities in order to ensure electric service 
to retail customers.

Section 1132. Open Non-Discriminatory Access

    Section 1132 authorizes FERC to require that unregulated 
transmitting utilities provide open access to their 
transmission systems at rates that are comparable to those they 
charge themselves and on comparable terms and conditions that 
are not unduly discriminatory. Small distribution utilities or 
unregulated transmitting utilities that do not own assets that 
are necessary for grid operation are exempted. FERC may revoke 
an exemption that adversely affects the efficiency and 
reliability of a transmission system. FERC may remand rates to 
an unregulated transmitting utility. The Committee recognizes 
that the Bonneville Power Administration sets rates in 
accordance with various laws and treaties, including the 
Pacific Northwest Electric Power Planning and Conservation Act 
and the Bonneville Power Administration Transmission Act. The 
limited authority provided FERC to ensure access at comparable 
rates and terms that are not unduly discriminatory neither 
alters nor affects the specific prescriptions applicable to the 
Bonneville Power Administration, nor precludes the Bonneville 
Power Administration from establishing prices, terms, and 
conditions in accordance with its enabling statutes. Those 
statutes, and their implementation by the Bonneville Power 
Administration, are unaffected. Specifically, the Committee 
notes that the Bonneville Power Administration will continue to 
establish its cost-based rates in accordance with existing law 
and the rates, as well as terms and conditions, shall not be 
considered unduly discriminatory.

Section 1133. Transmission Infrastructure Investment

    Section 1133 requires FERC to establish by rule within one 
year of the date of enactment transmission pricing policies and 
policies for the allocation of costs associated with 
interconnection of new transmission facilities that are not 
located within an RTO. The cost allocation rulemaking shall 
seek to ensure that such interconnection costs are allocated in 
a way that ensures all users of the system bear their 
appropriate share of costs and that anyone who pays for new 
facilities is appropriately compensated.

Subtitle D--Amendments to the Public Utility Regulatory Policies Act of 
                                  1978

Section 1141. Net Metering

    Section 1141 amends the Public Utility Regulatory Policies 
Act of 1978 (PURPA) to require States to consider the adoption 
of net metering standards regarding how on-site energy 
production will be measured and billed.

Section 1142. Smart Metering

    Section 1142 amends PURPA to require States to consider 
real time and time based pricing and other forms of demand 
response systems that benefit consumers.

Section 1143. Adoption of Additional Standards

    Section 1143 amends PURPA to require States to consider 
standards for interconnection of distributed generation and 
other generators to the distribution grid; for minimum fuel and 
technology diversity; and for fossil fuel efficiency.

Section 1144. Technical Assistance.

    Section 1144 permits the Secretary of Energy to offer 
technical assistance to States and electric utilities.

Section 1145. Cogeneration and Small Power Production Purchase and Sale 
        Requirements

    Section 1145 prospectively repeals PURPA's mandatory 
purchase requirements (which oblige electric utilities to buy 
power from qualifying cogeneration and small power production 
facilities) if an independently administered, auction-based day 
ahead and real time market exists and prospectively repeals 
PURPA's mandatory sale requirements (which oblige electric 
utilities to sell back-up power to qualifying cogeneration and 
small power production facilities) if competing retail 
suppliers are available.

Section 1146. Recovery of Costs

    Section 1146 ensures that public utilities do not directly 
or indirectly absorb costs associated with purchases from 
qualifying cogeneration and small power production facilities.

Subtitle E--Provisions Regarding the Public Utility Holding Company Act

Section 1151. Definitions

    Section 1151 is self-explanatory.

Section 1152. Repeal of the Public Utility Holding Company Act of 1935

    Section 1152 repeals the Public Utility Holding Company Act 
of 1935 (PUHCA).

Section 1153. Federal Access to Books and Records

    Section 1153 gives FERC authority to require that each 
holding company, associate company and affiliate company make 
available to FERC books, accounts and records that FERC 
determines are relevant to costs incurred by a public utility 
or natural gas company that is an associate of a holding 
company and that are necessary and appropriate to protect 
utility customers with respect to jurisdictional rates.

Section 1154. State Access to Books and Records

    Section 1154 provides that upon request of a State 
commission having jurisdiction to regulate a public utility 
company in a holding company system, and under conditions to 
ensure confidentiality of trade secrets or sensitive commercial 
information, a holding company, associate company or affiliate 
company is to make available to the State commission books, 
accounts and records that have been identified in a proceeding 
of the State commission and that the State commission 
determines are relevant to costs incurred by such public 
utility company and that are necessary and appropriate to 
protect utility customers with respect to jurisdictional rates. 
States can obtain books and records under state law or other 
applicable Federal law.

Section 1155. Exemption Authority

    Section 1155 provides that not later than 90 days after the 
date of enactment, FERC is to promulgate a final rule exempting 
from the Federal books and records requirement any person that 
is a holding company solely with respect to a qualifying 
facility, exempt wholesale generator, or foreign utility 
companies. FERC can exempt other records for any class of 
transactions that it finds are not relevant to jurisdictional 
rates.

Section 1156. Affiliate Transactions

    Section 1156 preserves the authority of FERC or a State 
commission to determine if a jurisdictional public utility 
company can recover in rates costs incurred through 
transactions with affiliates.

Section 1157. Applicability

    Section 1157 provides that PUHCA provisions do not apply to 
the U.S. Government, any state or political subdivision, any 
foreign government authority not operating in the U.S., or any 
agency, authority or instrumentality of any of the above.

Section 1158. Effect on Other Regulations

    Section 1158 preserves authorities of FERC or State 
commissions under other applicable law.

Section 1159. Enforcement

    Section 1159 authorizes FERC to use its enforcement 
authorities under the FPA to enforce this subtitle.

Section 1160. Savings Provisions

    Section 1160 permits continuation of activities authorized 
as of the date of enactment and preserves FERC authority under 
the FPA and the Natural Gas Act.

Section 1161. Implementation

    Section 1161 authorizes FERC to promulgate regulations to 
implement this subtitle and to submit recommendations to 
Congress for technical and conforming amendments within 12 
months of enactment.

Section 1162. Transfer of Resources

    Section 1162 provides that the Securities and Exchange 
Commission is to transfer books and records to FERC.

Section 1163. Effective Date

    Section 1163 provides that this subtitle takes effect 12 
months after the date of enactment.

Section 1164. Conforming Amendments to the Federal Power Act

    Section 1164 repeals FPA section 318, dealing with 
conflicts in jurisdiction between PUHCA and the FPA.

   Subtitle F--Market Transparency, Anti Manipulation and Enforcement

Section 1171. Market Transparency Rules

    Section 1171 requires FERC to establish an electronic 
system to provide information on availability and price of 
wholesale electric energy and transmission services.

Section 1172. Market Manipulation

    Section 1172 amends the FPA to prohibit the filing of false 
information and provides that a round-trip trade is a violation 
of the FPA. Round-trip trade is defined as a transaction or 
combination of transactions in which a person or other entity 
simultaneously enters into financially offsetting transactions 
to sell the same electric energy at the same location, price, 
quantity and terms so that collectively the purchase and sale 
transactions themselves result in no financial gain or loss and 
enters into the contract or arrangement with the intent to 
deceptively affect reported revenues, trading volumes or 
prices.

Section 1173. Enforcement

    Section 1173 expands scope of who can file complaints and 
against whom complaints can be filed under the FPA, extends 
FERC's investigation authority to transmitting utilities, and 
increases penalties under the FPA and the Natural Gas Act.

Section 1174. Refund Effective Date

    Section 1174 amends FERC's authority to allow refunds under 
the FPA as of the date of the filing of a complaint.

                    Subtitle G--Consumer Protections

Section 1181. Consumer Privacy

    Section 1181 directs the Federal Trade Commission (FTC) to 
promulgate rules regarding disclosure of consumer information.

Section 1182. Unfair Trade Practices

    Section 1182 directs the FTC to issue rules to prohibit 
changes of electric utility service without consumer consent 
(slamming) and sales of services without consumer consent 
(cramming).

Section 1183. Definitions

    Section 1183 defines terms for this subtitle and is self-
explanatory.

                    Subtitle H--Technical Amendments

Section 1191. Technical Amendments

    Section 1191 corrects technical errors in the FPA.

                   Cost and Budgetary Considerations

    The Congressional Budget Office estimate of the costs of 
this measure has been requested but was not received at the 
time the report was filed. When the report is available, the 
Chairman will request it to be printed in the Congressional 
Record for the advice of the Senate.

                      Regulatory Impact Evaluation

    In compliance with paragraph 11(b) of rule XXVI of the 
Standing Rules of the Senate, the Committee makes the following 
evaluation of the regulatory impact which would be incurred in 
carrying out S.    . The bill contains a variety of regulatory 
measures in the sense of imposing Government-established 
standards on private individuals and businesses in establishing 
efficiency standards and similar programs. There may be some 
economic costs associated with certain of the requirements. 
There are also voluntary programs, such as the authorization 
for Tribal governments to enter into agreements that would 
allow them to assume full responsibility for development of 
energy resources. Compliance with those agreements will require 
commitments of resources and the establishment of a regulatory 
program by the Tribes. Various grant and other assistance 
programs will require submission of documentation or plans as a 
condition for the assistance and the amendments to the Federal 
Power Act may result in information being made available in 
different modes or times than at present, especially under 
market transparency provisions. The Committee believes that the 
effects are not undue and are reasonable in light of the 
benefits of the programs.
    No personal information would be collected in administering 
the program. Therefore, there would be no impact on personal 
privacy.
    Little, if any, additional paperwork would result from the 
enactment of S.     , as ordered reported, with the exception 
of the various studies required by the legislation and the 
reporting associated with grant and financial assistance 
programs, the Tribal energy development agreement 
implementation, or the requirements associated with amendments 
to the Federal Power Act and the Public Utility Regulatory 
Purposes Act of 1978.

                        Executive Communications

    Executive views on the original bill have not been 
received.

                   MINORITY VIEWS OF SENATOR BINGAMAN

    Our nation has been blessed with an abundance of natural 
resources. This fact has long shaped our national energy 
policy, and our energy policy has shaped both our economy and 
our society. Cheap, abundant energy has made us the world's 
dominant economic power and it has enabled us to attain a 
standard of living that is the envy of the world.
    Our demand for energy has long since outpaced our own 
resources. We consume far more than we can produce at home. We 
are increasingly dependent on low-cost oil from abroad. And the 
environmental consequences of our dependence on fossil fuels 
are growing increasingly apparent and alarming.
    Plainly, then, a new energy policy--an energy policy for 
the 21st century--is needed. Such a policy must, as the 
President has said, ``help the private sector * * * promote 
dependable, affordable, and environmentally sound production 
and distribution of energy for the future.'' But it must do 
more than promote production. It must promote conservation and 
efficiency, technological innovation, and the formation of new, 
competitive energy markets. At the same time, it must protect 
consumers from exploitation and the environment from 
degradation.
    The bill ordered reported by the Committee on Energy and 
Natural Resources, largely along party lines, fails the test. 
While it contains a host of good provisions, overall, it lacks 
the balance needed to provide an effective energy policy for 
the 21st century.
Automobile fuel efficiency
    The bill does nothing to address our growing demand for 
imported oil to fuel our cars and trucks. To the contrary, the 
bill's fuel ``economy'' provisions, which extend provisions of 
existing law that give extra fuel economy credits to so-called 
``dual-fuel alternative fuel vehicles,'' will actually increase 
gasoline consumption by an estimated 11.5 billion barrels.
    During the Committee's consideration of the bill, Senator 
Feinstein offered an amendment that would have required sport 
utility vehicles (SUVs) and light-duty trucks to meet, by 2011, 
the same fuel economy standards that passenger vehicles have 
met since 1985. Closing this ``SUV loophole'' would save one 
million barrels of oil per day. It would reduce oil imports by 
ten percent. And it would prevent about 240 million tons of 
carbon dioxide--the top greenhouse gas and biggest single cause 
of global warming--from entering the atmosphere. Regrettably, 
the Committee rejected Senator Feinstein's amendment on a 
largely party-line vote.
Renewable energy
    The bill does not do enough to increase the use of 
renewable energy. Last year, the Senate approved an energy bill 
containing both a renewable fuel standard for transportation 
fuels and a renewable portfolio standard for electricity. The 
renewable fuel standard would have added 5 billion gallons of 
homegrown ethanol to the nation's gasoline supply by 2012. The 
renewable portfolio standard would have ensured that 10 percent 
of the nation's electricity would be generated from renewable 
energy sources by 2019. The Committee abandoned both 
initiatives.
    During the Committee's consideration of the bill, I offered 
an amendment to add a renewable portfolio standard, similar to 
the one approved by the Senate last year. The Committee 
rejected it on a straight party-line vote.
Nuclear subsidies
    The bill contains huge subsidies for the nuclear power 
industry. It authorizes the Secretary of Energy to guarantee up 
to half the cost of building as many as six new nuclear power 
plants. It places no ceiling on these loan guarantees, which 
would make the federal taxpayers potentially liable for 
billions of dollars in construction and delay costs.
    During the Committee's consideration of the bill, I offered 
an amendment to strike these subsidies. The Committee rejected 
it largely on a party-line vote.
    In addition, the bill authorizes the Secretary of Energy to 
build and operate a new advanced nuclear reactor to generate 
both hydrogen and electricity. It authorizes $1.135 billion for 
this project through fiscal year 2008, and such sums as may be 
needed beyond 2008. It exempts the project from the management 
controls the Department of Energy normally applies to its 
projects, and does not require the reactor to be licensed by 
the Nuclear Regulatory Commission.
Repeal of the Public Utility Holding Company Act
    The bill repeals the Public Utility Holding Company Act 
without providing any offsetting protection for electricity 
consumers. The Holding Company Act is a Depression-era law 
designed to protect investors and consumers from abuses they 
suffered at the hands of public utility holding companies. 
While the Act may be outdated and more restrictive than it 
needs to be, it should not be repealed without putting in place 
the new regulatory authorities needed to prevent future abuses. 
Proponents of the Act's repeal say that federal antitrust law 
and state utility regulation will be sufficient to prevent 
abuses. But both federal antitrust regulators and state utility 
regulators say they lack the tools to do the job.
    The energy bill approved by the Senate last year repealed 
the Holding Company Act, but gave the Federal Energy Regulatory 
Commission new authority to review electric utility mergers. 
Under last year's bill, mergers and acquisitions that the 
Holding Company Act now bans would have been permitted, if the 
Federal Energy Regulatory Commission found they did not harm 
electric consumers or the public interest. The Committee 
abandoned this sensible check on the increasing concentration 
in the electric utility industry.

Manipulation of electricity markets

    The bill does little to protect electricity consumers from 
market manipulation. The Federal Energy Regulatory Commission's 
recent investigation of price manipulation in the western 
electricity markets disclosed a host of practices used by 
energy traders to manipulate prices. The Committee prohibits 
only one of these practices--round-trip trading--and leaves all 
the others unregulated.
    During the Committee's consideration of the bill, I offered 
an amendment that contained a broad-based prohibition on market 
manipulation. My proposal was based on similar language in the 
Securities Exchange Act of 1934, which has served the public 
well for nearly 70 years. This amendment was also rejected on a 
straight party-line vote.

Energy development on Indian land

    The bill contains a beneficial title that offers Indian 
tribes financial and technical assistance to develop energy 
resources on their lands. Unfortunately, the bill goes too far. 
Under current law, the Secretary of the Interior, as the 
trustee for the Indian tribes, must approve of any energy 
project on Indian land. The Secretary's approval is a major 
federal action subject to environmental review under the 
National Environmental Policy Act. The bill would permit the 
tribes to open their lands to oil and gas drilling, coal 
mining, pipeline and transmission line rights-of-way, and all 
manner of energy projects without the Secretary's approval of 
individual projects. Since the tribes are not federal agencies 
and the Secretary would no longer be required to approve energy 
projects on Indian land, they would no longer require an 
environmental review under the National Environmental Policy 
Act. In addition, the provision waives federal liability for 
any harm to a tribe resulting from a project approved under 
this authority. Thus, in a stroke, the provision eliminates 
comprehensive environmental reviews, meaningful public 
participation, and the Secretary's trust responsibility with 
respect to energy projects on Indian land.
    I offered an amendment to strike this provision during the 
Committee's consideration of the bill. This amendment was also 
rejected by a straight party-line vote.

Hydroelectric licensing

    More than 80 years ago, the Federal Water Power Act struck 
a balance between the power industry and the champions of 
government control over water power development. The power 
industry won the right to appropriate water resources from the 
public domain for periods of up to 50 years. The champions of 
government control won the right to license hydroelectric 
projects and to hold them to a public interest test. The 
Federal Energy Regulatory Commission cannot consider the 
hydroelectric benefits of a proposed project alone, but must 
give equal consideration to the project's effect on fish and 
wildlife, recreation, and other environmental concerns. In 
addition, where the project is to be built on an Indian 
reservation, a national forest, or other federal reservation, 
the Commission is required to include in the license whatever 
conditions the Secretary responsible for the reservation deems 
necessary for the adequate protection and use of the 
reservation.
    The bill reported by the Committee would tip this long-
standing balance in the power industry's favor by giving the 
license applicant the power to propose ``alternative'' 
conditions that the Secretary must accept if they provide 
``adequate'' protection to the reservation, even though 
``adequate'' protection may mean less protection than the 
Secretary's conditions. There are similar provisions for 
fishway prescriptions. In addition, the bill gives the license 
applicant special procedural rights on alternative conditions 
and the right to trial-type hearings on the Secretary's 
conditions that will not be available to other people whose 
interests may be affected. These trial-type hearings are likely 
to delay the issuance of both new licenses and renewals by 
three years or more.
    During the last Congress, both the House and the Senate 
passed provisions giving license applicants the ability to 
propose alternative conditions. The House required them to be 
at least as protective of the reservation as the Secretary's, 
while the Senate did not. Neither the House nor the Senate gave 
license applicants special procedural rights.
    During the Committee's consideration of the bill, I offered 
an amendment to replace these provisions with the ones approved 
by the House last year. Adoption of my amendment would have 
eliminated the special procedural rights to trial-type 
hearings, placed all parties on an equal procedural footing, 
and required alternative conditions and fishway prescriptions 
to be at least as protective as the Secretary's. The Committee 
rejected the amendment on a largely party-line vote.

Climate change

    The bill does little or nothing to address the serious 
problem of global climate change. The energy bill passed by the 
Senate last year, by contrast, contained several useful, if 
modest, climate change initiatives. They would not have solved 
the serious health, environmental, and economic problems posed 
by climate change, but they at least acknowledged the existence 
of the problems and would have put us on a track to begin 
solving those problems by creating new offices, providing for 
data collection, and authorizing research and development 
programs.
    The bill reported by the Committee should do no less, but 
it does. I was prepared to offer a climate change amendment 
based on the provisions approved by the Senate last year. 
Regrettably, the Committee elected to defer any consideration 
of this central issue, despite the fact that many aspects of 
the matter are within the jurisdiction of the Committee.
    The Committee's unwillingness to address climate change in 
its energy bill stands in sharp and unfavorable contrast with 
the United Kingdom's energy policy adopted earlier this year. 
Britain sees climate change as the primary challenge to be 
addressed by its energy policy and has committed itself to 
reducing its carbon dioxide emissions by 60 percent of current 
levels by 2050.

The bill on balance

    The bill is not without its good points. It contains many 
useful provisions on oil and gas development, construction of 
the Alaska Natural Gas Pipeline, clean coal development, Indian 
energy, renewal of the Price-Anderson Act, renewable energy, 
energy efficiency, hydrogen, energy research and development, 
workforce training, and electricity.
    But a vote to report the bill is a vote on the overall 
balance and scope of the bill. As it now stands, the bill does 
not do enough, or goes in the wrong direction, on too many key 
issues for me to vote for it.

                                                     Jeff Bingaman.

                  MINORITY VIEWS OF SENATOR BOB GRAHAM

    The Energy Policy Act of 2003 does little to extract the 
United States from the web of fossil fuel dependence, 
demonstrating an unwillingness to move away from a policy that 
could be described as ``Drill America First.'' Nothing more 
clearly illustrates this point than Section 105 of Title I, 
which requires the Department of the Interior to sue invasive 
exploration technologies to inventory oil and natural gas in 
areas of the outer continental shelf that are currently 
protected by moratoria. Section 105 demonstrates the narrow 
focus of this energy legislation when it comes our energy 
future. It constitutes a backsliding on moratoria that have 
been upheld for two decades by Democratic and Republican 
Administrations and Congress, rather than a step forward to 
efficient use of our current supplies of fossil fuels.
    Section 105 has been represented as a simple study of our 
nation's oil and gas resources. However, authorizing seismic 
surveys and dart core sampling in protected areas of the outer 
continental shelf does not constitute an innocuous study.
    Dart core sampling, which could be used to collect data, is 
similar in nature to exploratory drilling. Samples are 
collected by dropping large hollow metal tubes from survey 
ships, to vertically puncture the seafloor. The heavy free-
falling tube gathers velocity as a result of the pull of 
gravity, penetrates the seabed to a substantial depth, and is 
then retrieved shipboard. Environmental impacts of dart core 
sampling, usually done at frequent spatial intervals, include 
the smothering of seabed organisms with substantial silt 
plumes.
    Seismic 3-D surveys will also be used to collect date in 
moratoria areas and have serious negative impacts on marine 
life. A study from the University of Maryland in February of 
this year indicates that seismic shockwaves damage the auditory 
organs of fish and whales. Internal hemorrhaging in whales 
caused by the sonar pulses used for seismic surveys may 
correlate to beaching.
    Why risk these environmental impacts to protected areas of 
the outer continental shelf when the Minerals Management 
Service already conducts an oil and gas inventory every five 
years?
    The most recent MMS study, the Outer Continental Shelf 
Petroleum Assessment, was completed in 2000. Data on fossil 
fuel resources in moratoria areas is gathered through modeling 
and is included in the assessment. The 2000 assessment is an 
example of the appropriate way to study areas currently under 
moratoria.
    Policies that increase fuel efficiency and expand the use 
of renewable energy sources were not included in the committee 
mark of the Energy Policy Act of 2003. The bill risks the 
economic and ecological security of coastal states by focusing 
on fossil fuel rather then addressing comprehensive energy 
needs. For twenty years, Congress and the Administration have 
agreed with states like Florida, California, Oregon, and 
Washington that the risks posed by drilling to their economies 
and shores is too great to be borne. For these reasons, I 
oppose reporting the Energy Policy Act of 2003 from committee.

                                                        Bob Graham.

                        Changes in Existing Law

    In compliance with paragraph 12 of rule XXVI of the 
Standing Rules of the Senate, changes in existing law made by 
the bill S.     , as ordered reported, are shown as follows 
(existing law proposed to be omitted is enclosed in black 
brackets, new matter is printed in italic, existing law in 
which no change is proposed is shown in roman):

                          MINERAL LEASING ACT

      Act of February 25, 1920, as amended (30 U.S.C. 181 et seq.)

                                  COAL

    Sec. 2.

           *       *       *       *       *       *       *

    (d)(1) * * *
    (2)(A) After the Secretary has approved the establishment 
of a logical mining unit, any mining plan approved for that 
unit must require such diligent development, operation, and 
production that the reserves of the entire unit will be mined 
within a period established by the Secretary which shall not be 
more than forty years.
    (B) The Secretary may establish a period of more than forty 
years if the Secretary determines that the longer period will 
ensure the maximum economic recovery of a coal deposit, or the 
longer period is in the interest of the orderly, efficient, or 
economic development of a coal resource.

           *       *       *       *       *       *       *

    Sec. 3. Any person, association, or corporation holding a 
lease of coal lands or coal deposits under the provisions of 
this chapter may with the approval of the Secretary of the 
Interior, upon [a finding by him that it would be in the 
interest of the United States, secure modifications of the 
original coal lease by including additional coal lands or coal 
deposits contiguous or cornering to those embraced in such 
lease, but in no event shall the total area added by such 
modifications to an existing coal lease exceed one hundred 
sixty acres, or add acreage larger than that in the original 
lease.] a finding by the Secretary that it (1) would be in the 
interest of the United States, (2) would not displace a 
competitive interest in the lands, and (3) would not include 
lands or deposits that can be developed as part of another 
potential or existing operation, secure modifications of the 
original coal lease by including additional coal lands or coal 
deposits contiguous or cornering to those embraced in such 
lease, but in no event shall the total area added by such 
modifications to an existing coal lease exceed 320 acres, or 
add acreage larger than that in the original lease. The 
Secretary shall prescribe terms and conditions which shall be 
consistent with this chapter and applicable to all of the 
acreage in such modified lease except that nothing in this 
section shall require the Secretary to apply the production or 
mining plan requirements of sections 202a(2) and 207(c) of this 
title. The minimum royalty provisions of section 207(a) of this 
title shall not apply to any lands covered by this modified 
lease prior to a modification until the term of the original 
lease or extension thereof which became effective prior to the 
effective date of this Act has expired.

           *       *       *       *       *       *       *

    Sec. 7. * * *
    (b) Each lease shall be subject to the conditions of 
diligent development and continued operation of the mine or 
mines, except where operations under the lease are interrupted 
by strikes, the elements, or casualties not attributable to the 
lessee. The Secretary of the Interior, upon determining that 
the public interest will be served thereby, may suspend the 
condition of continued operation upon the payment of advance 
royalties. Such advance royalties shall be no less than the 
production royalty which would otherwise be paid and shall be 
computed on a fixed reserve to production ratio (determined by 
the Secretary). [The aggregate number of years during the 
period of any lease for which advance royalties may be accepted 
in lieu of the condition of continued operation shall not 
exceed ten. The amount of any production royalty paid for any 
year shall be reduced (but not below 0) by the amount of any 
advance royalties paid under such lease to the extent that such 
advance royalties have not been used to reduce production 
royalties for a prior year. No advance royalty paid during the 
initial twenty-year term of a lease shall be used to reduce a 
production royalty after the twentieth year of a lease.] The 
aggregate number of years during the period of any lease for 
which advance royalties may be accepted in lieu of the 
condition of continued operation shall not exceed twenty. The 
amount of any production royalty paid for any year shall be 
reduced (but not below 0) by the amount of any advance 
royalties paid under such lease to the extent that such advance 
royalties have not been used to reduce production royalties for 
a prior year. The Secretary may, upon six months' notification 
to the lessee cease to accept advance royalties in lieu of the 
requirement of continued operation. Nothing in this subsection 
shall be construed to affect the requirement contained in the 
second sentence of subsection (a) of this section relating to 
commencement of production at the end of ten years.
    (c) Prior to taking any action on a leasehold which might 
cause a significant disturbance of the environment, [and not 
later than three years after a lease is issued,] the lessee 
shall submit for the Secretary's approval an operation and 
reclamation plan. The Secretary shall approve or disapprove the 
plan or require that it be modified. Where the land involved is 
under the surface jurisdiction of another Federal agency, that 
other agency must consent to the terms of such approval.

           *       *       *       *       *       *       *

    Sec. 27. * * *
    (d)(1) No person, association, or corporation, except as 
otherwise provided in this chapter, shall take, hold, own or 
control at one time whether acquired directly from the 
Secretary under this chapter, or otherwise, oil or gas leases 
(including options for such leases or interests therein) on 
land held under the provisions of this chapter exceeding in the 
aggregate two hundred forty-six thousand and eighty acres in 
any one State other than Alaska Provided, however, That acreage 
held in special tar sand areas as well as acreage under any 
lease any portion of which has been committed to a federally 
approved unit or cooperative plan or communitization agreement, 
or for which royalty, including compensatory royalty or 
royalty-in-kind, was paid in the preceding calendar year, shall 
not be chargeable against such State limitations. In the case 
of the State of Alaska, the limit shall be three hundred 
thousand acres in the northern leasing district and three 
hundred thousand sand acres in the southern leasing district, 
and the boundary between said two districts shall be the left 
limit of the Tanana River from the border between the United 
States and Canada to the confluence of the Tanana and Yukon 
Rivers, and the left limit of the Yukon River from said 
confluence to its principal southern mouth.
                              ----------                                
        

                           FEDERAL POWER ACT

  Act of June 10, 1920, chapter 285, as amended (16 U.S.C. 791a-825r)

PART I

           *       *       *       *       *       *       *

    Sec. 3. The words defined in this section shall have the 
following meanings for the purpose of this Act, to wit:

           *       *       *       *       *       *       *

          (17) (A) * * *
          [(C) ``qualifying small power production facility'' 
        means a small power production facility--
                  (i) which the Commission determines, by rule, 
                meets such requirements (including requirements 
                respecting fuel use, fuel efficiency, and 
                reliability) as the Commission may, by rule, 
                prescribe; and
                  (ii) which is owned by a person not primarily 
                engaged in the generation or sale of electric 
                power (other than electric power solely from 
                cogeneration facilities or small power 
                production facilities);]
          (C) ``qualifying small power production facility'' 
        means a small power production facility that the 
        Commission determines, by rule, meets such requirements 
        (including requirements respecting fuel use, fuel 
        efficiency, and reliability) as the Commission may, by 
        rule, prescribe;

           *       *       *       *       *       *       *

          (18) (A) ``cogeneration facility'' means a facility 
        which produces--
                  (i) electric energy, and
                  (ii) steam or forms of useful energy (such as 
                heat) which are used for industrial, 
                commercial, heating, or cooling purposes;
          [(B) ``qualifying cogeneration facility'' means a 
        cogeneration facility which--
                  (i) the Commission determines, by rule, meets 
                such requirements (including requirements 
                respecting minimum size, fuel use, and fuel 
                efficiency) as the Commission may, by rule, 
                prescribe; and
                  (ii) is owned by a person not primarily 
                engaged in the generation or sale of electric 
                power (other than electric power solely from 
                cogeneration facilities or small power 
                production facilities);]
          (B) ``qualifying cogeneration facility'' means a 
        cogeneration facility that the Commission determines, 
        by rule, meets such requirements (including 
        requirements respecting minimum size, fuel use, and 
        fuel efficiency) as the Commission may, by rule, 
        prescribe;

           *       *       *       *       *       *       *

          (22) ``electric utility'' [means any person or State 
        agency (including any municipality) which sells 
        electric energy; such term includes the Tennessee 
        Valley Authority, but does not include any Federal 
        power marketing agency;] means any person or Federal or 
        State agency (including any municipality) that sells 
        electric energy; such term includes the Tennessee 
        Valley Authority and each Federal power marketing 
        agency;
          (23) ``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;] means an entity, 
        including any entity described in section 201(f), that 
        owns or operates facilities used for the transmission 
        of electric energy--
                  (A) in interstate commerce; or
                  (B) for the sale of electric energy at 
                wholesale.

           *       *       *       *       *       *       *

          (26) ``unregulated transmitting utility'' means an 
        entity that--
                  (A) owns or operates facilities used for the 
                transmission of electric energy in interstate 
                commerce, and
                  (B) is an entity described in section 2010 or 
                a rural electric cooperative with financing 
                from the Rural Utilities Service.
          (27) ``distribution utility'' means an electric 
        utility that does not own or operate transmission 
        facilities or an unregulated transmitting utility that 
        provides 90 percent of the electric energy its 
        transmits to customers at retail.
    Sec. 4. * * *
    (e) To issue licenses to citizens of the United States, or 
to any association of such citizens, or to any corporation 
organized under the laws of the United States or any State 
thereof, or to any State or municipality for the purpose of 
constructing, operating, and maintaining dams, water conduits, 
reservoirs, power houses, transmission lines, or other project 
works necessary or convenient for the development and 
improvement of navigation and for the development, 
transmission, and utilization of power across, along, from or 
in any of the streams or other bodies of water over which 
Congress has jurisdiction under its authority to regulate 
commerce with foreign nations and among the several States, or 
upon any part of the public lands and reservations of the 
United States (including the Territories), or for the purpose 
of utilizing the surplus water or water power from any 
Government dam, except as herein provided: Provided, That 
licenses shall be issued within any reservation only after a 
finding by the Commission that the license will not interfere 
or be inconsistent with the purpose for which such reservation 
was created or acquired, and shall be subject to and contain 
such conditions as the Secretary of the department under whose 
supervision such reservation falls shall deem necessary for the 
adequate protection and utilization of such reservation. The 
license applicant shall be entitled to a determination on the 
record, after opportunity for an agency trial-type hearing of 
any disputed issues of material fact, with respect to such 
conditions. Provided further, That no license affecting the 
navigable capacity of any navigable waters of the United States 
shall be issued until the plans of the dam or other structures 
affecting navigation have been approved by the Chief of 
Engineers and the Secretary of the Army.

           *       *       *       *       *       *       *

    Sec. 18. The Commission shall require the construction, 
maintenance, and operation by a licensee at its own expense of 
such lights and signals as may be directed by the Secretary of 
the Department in which the Coast Guard is operating, and such 
fishways as may be prescribed by the Secretary of the Interior 
or the Secretary of Commerce. The license applicant shall be 
entitled to a determination on the record, after opportunity 
for an agency trial-type hearing of any disputed issues of 
material fact, with respect to such fishways. The operation of 
any navigation facilities which may be constructed as a part of 
or in connection with any dam or diversion structure built 
under the provisions of this Act, whether at the expense of a 
licensee hereunder or of the United States, shall at all times 
be controlled by such reasonable rules and regulations in the 
interest of navigation, including the control of the level of 
the pool caused by such dam or diversion structure as may be 
made from time to time by the Secretary of the Army, and for 
willful failure to comply with any such rule or regulation such 
licensee shall be deemed guilty of a misdemeanor, and upon 
conviction thereof shall be punished as provided in section 316 
hereof.

           *       *       *       *       *       *       *

SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS.

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

           *       *       *       *       *       *       *

PART II--REGULATION OF ELECTRIC UTILITY COMPANIES ENGAGED IN INTERSTATE 
COMMERCE

           *       *       *       *       *       *       *

   FIXING RATES AND CHARGES; DETERMINATION OF COST OF PRODUCTION OR 
                              TRANSMISSION

    Sec. 206. * * *
    (b) Whenever the Commission institutes a proceeding under 
this section, the Commission shall establish a refund effective 
date. In the case of a proceeding instituted on complaint, the 
refund effective date shall not be earlier than [the date 60 
days after the filing of such complaint nor later than 5 months 
after the expiration of such 60-day period] the date of the 
filing of such complaint nor later than 5 months after the 
filing of such complaint. In the case of a proceeding 
instituted by the Commission on its own motion, the refund 
effective date shall not be earlier than the date [60 days 
after] of the publication by the Commission of notice of its 
intention to initiate such proceeding nor later than 5 months 
after the [expiration of such 60-day period] publication date. 
Upon institution of a proceeding under this section, the 
Commission shall give to the decision of such proceeding the 
same preference as provided under section 205 of this Act and 
otherwise act as speedily as possible. [If no final decision is 
rendered by the refund effective date or by the conclusion of 
the 180-day period commencing upon initiation of a proceeding 
pursuant to this section, whichever is earlier, the Commission 
shall state the reasons why it has failed to do so and shall 
state its best estimate as to when it reasonably expects to 
make such decision.] If no final decision is rendered by the 
conclusion of the 180-day period commencing upon initiation of 
a proceeding pursuant to this section, the Commission shall 
state the reasons why it has failed to do so and shall state 
its best estimate as to when it reasonably expects to make such 
decision. In any proceeding under this section, the burden of 
proof to show that any rate, charge, classification, rule, 
regulation, practice, or contract is unjust, unreasonable, 
unduly discriminatory, or preferential shall be upon the 
Commission or the complainant.

           *       *       *       *       *       *       *

                       CERTAIN WHEELING AUTHORITY

    Sec. 211. (a) * * *

           *       *       *       *       *       *       *

    (c)[(2)] No order may e issued under subsection (a) or (b) 
which requires the transmitting utility subject to the order to 
transmit, during any period, an amount of electric energy which 
replaces any amount of electric energy--
          [(A)] (1) required to be provided to such applicant 
        pursuant to a contract during such period, or
          [(B)] (2) currently provided to the applicant by the 
        utility subject to the order pursuant to a rate 
        schedule on file during such period with the 
        Commission: Provided, That nothing in this subparagraph 
        shall prevent an application for an order hereunder to 
        be filed prior to [termination of modification] 
        termination or modification of [or] an existing rate 
        schedule: Provided, That such order shall not become 
        effective until termination of such rate schedule or 
        the modification becomes effective.
    (d)(1) Any transmitting utility ordered under subsection 
(a) or (b) to provide transmission services may apply to the 
Commission for an order permitting such transmitting utility to 
cease providing all, or any portion of, such services. After 
public notice, notice to each affected State regulatory 
authority, each affected Federal power marketing agency, each 
affected transmitting utility, and each affected electric 
utility, and after an opportunity for an evidentiary hearing, 
the Commission shall issue an order terminating or modifying 
the order issued under subsection (a) or (b), if the [electric 
utility] transmitting utility providing such transmission 
services has demonstrated, and the Commission has found, that--
          (A) due to changed circumstances, the requirements 
        applicable, under this section and section 212, to the 
        issuance of an order under subsection (a) or (b) are no 
        longer met, or
          (B) any transmission capacity of the utility 
        providing transmission services under such order which 
        was, at the time such order was issued, in excess of 
        the capacity necessary to serve its own customers is no 
        longer in excess of the capacity necessary for such 
        purposes, or
          (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.
No order shall be issued under this subsection pursuant to a 
finding under subparagraph (A) unless the Commission finds that 
such order is in the public interest.

           *       *       *       *       *       *       *

           OPEN ACCESS BY UNREGULATED TRANSMITTING UTILITIES

    Sec. 211A. (a) Subject to section 212(h), the Commission 
may, by rule or order, require an unregulated transmitting 
utility to provide transmission services--
          (1) at rates that are comparable to those that the 
        unregulated transmitting utility charges itself; and
          (2) on terms and conditions (not relating to rates) 
        that are comparable to those under which such 
        unregulated transmitting utility provides transmission 
        services to itself and that are not unduly 
        discriminatory or preferential.
    (b) The Commission shall exempt from any rule or order 
under this subsection any unregulated transmitting utility 
that--
          (1) is a distribution utility that sells no more than 
        4,000,000 megawatt hours of electricity per year; or
          (2) does not own or operate any transmission 
        facilities that are necessary for operating an 
        interconnected transmission system (or any portion 
        thereof); or
          (3) meets other criteria the Commission determines to 
        be in the public interest.
    (c) Whenever the Commission, after a hearing held upon a 
complaint, finds any exemption granted pursuant to subsection 
(b) adversely affects the reliable and efficient operation of 
an interconnected transmission system, it may revoke the 
exemption.
    (d) The rate changing procedures applicable to public 
utilities under subsections (c) and (d) of section 205 are 
applicable to unregulated transmitting utilities for purposes 
of this section.
    (e) In exercising its authority under paragraph (1) of 
subsection (a), the Commission may remand transmission rates to 
an unregulated transmitting utility for review and revision 
where necessary to meet the requirements of subsection (a).
    (f) The provision of transmission services under subsection 
(a) does not preclude a request for transmission services under 
section 211.
    (g) The Commission may not require a State or municipality 
to take action under this section that constitutes a private 
business use for purposes of section 141 of the Internal 
Revenue Code of 1986 (26 U.S.C. 141).
    (h) Nothing in this Act authorizes the Commission to 
require an unregulated transmitting utility to transfer control 
or operational control of its transmitting facilities to an RTO 
or any other Commission-approved organization designated to 
provide non-discriminatory transmission access.

           *       *       *       *       *       *       *

                          ELECTRIC RELIABILITY

    Sec. 215. (a) For the purposes of this section:
          (1) The term ``bulk power system'' means--
                  (A) facilities and control systems necessary 
                for operating an interconnected electric energy 
                transmission network (or any portion thereof; 
                and
                  (B) electric energy from generation 
                facilities needed to maintain transmission 
                system reliability.
The term does not include facilities used in the local 
distribution of electric energy.
          (2) The terms ``Electric Reliability Organization'' 
        and ``ERO'' mean the organization certified by the 
        Commission under subsection (c), the purpose of which 
        is to establish and enforce reliability standards for 
        the bulk-power system, subject to Commission review.
          (3) The term ``reliability standard'' means a 
        requirement, approved by the Commission under this 
        section, to provide for reliable operation of the bulk 
        power system. The term includes requirements for the 
        operation of existing bulk-power system components and 
        the design of planned additions or modifications to 
        such components to the extent necessary to provide for 
        reliable operation of the bulk power system, but the 
        term does not include any requirement to enlarge such 
        components or to construct new transmission capacity or 
        generation capacity.
          (4) The term ``reliable operation'' means operating 
        the components of the bulkpower system within equipment 
        and electric system thermal, voltage, and stability 
        limits so that instability, uncontrolled separation, or 
        cascading failures of such system will not occur as a 
        result of a sudden disturbance or unanticipated failure 
        of system components.
          (5) The term ``Interconnection'' means a geographic 
        area in which the operation of bulk-power system 
        components is synchronized such that the failure of one 
        or more of such components may adversely affect the 
        ability of the operators of other components within the 
        system to maintain reliable operation of the portion of 
        the system within their control.
          (6) The term ``transmission organization'' means an 
        RTO or other transmission organization finally approved 
        by the Commission for the operation of transmission 
        facilities.
          (7) The term ``regional entity'' means an entity 
        having enforcement authority pursuant to subsection 
        (e)(4).
    (b) The Commission shall have jurisdiction, within the 
United States, over the ERO certified by the Commission under 
subsection (c), any regional entities, and all users, owners 
and operators of the bulk power system, including the entities 
described in section 201(f), for purposes of approving 
reliability standards established under this section and 
enforcing compliance with this section. All users, owners and 
operators of the bulk power system shall comply with 
reliability standards that take effect under this section. The 
Commission shall issue a final rule to implement the 
requirements of this section not later than 180 days after the 
date of enactment of this section.
    (c) Following the issuance of a Commission rule under 
subsection (b), any person may submit an application to the 
Commission for certification as the Electric Reliability 
Organization. The Commission may certify one such ERO if the 
Commission determines that such ERO--
          (1) has the ability to develop and enforce, subject 
        to subsection (d)(2), reliability standards that 
        provide for an adequate level of reliability of the 
        bulk power system; and
    (2) has established rules that--
                  (A) assure its independence of the users and 
                owners and operators of the bulk power system, 
                while assuring fair stakeholder representation 
                in the selection of its directors and balanced 
                decisionmaking in any ERO committee or 
                subordinate organizational structure;
                  (B) allocate equitably reasonable dues, fees, 
                and other charges among end users for all 
                activities under this section;
                  (C) provide fair and impartial procedures for 
                enforcement of reliability standards through 
                the imposition of penalties in accordance with 
                subsection (e) (including limitations on 
                activities, functions, or operations, or other 
                appropriate sanctions);
                  (D) provide for reasonable notice and 
                opportunity for public comment, due process, 
                openness, and balance of interests in 
                developing reliability standards and otherwise 
                exercising its duties; and
                  (E) provide for taking, after certification, 
                appropriate steps to gain recognition in Canada 
                and Mexico.
    (d)(1) The ERO shall file each reliability standard or 
modification to a reliability standard that it proposes to be 
made effective under this section with the Commission.
    (2) The Commission may approve by rule or order a proposed 
reliability standard or modification to a reliability standard 
if it determines that the standard is just, reasonable, not 
unduly discriminatory or preferential, and in the public 
interest. The Commission shall give due weight to the technical 
expertise of the ERO with respect to the content of a proposed 
standard or modification to a reliability standard and to the 
technical expertise of a regional entity organized on an 
Interconnection-wide basis with respect to a reliability 
standard to be applicable within that Interconnection, but 
shall not defer with respect to the effect of a standard on 
competition. A proposed standard or modification shall take 
effect upon approval by the Commission.
    (3) The ERO shall rebuttably presume that a proposal from a 
regional entity organized on an Interconnection-wide basis for 
a reliability standard or modification to a reliability 
standard to be applicable on an Interconnection-wide basis is 
just, reasonable, and not unduly discriminatory or 
preferential, and in the public interest.
    (4) The Commission shall remand to the ERO for further 
consideration a proposed reliability standard or a modification 
to a reliability standard that the Commission disapproves in 
whole or in part.
    (5) The Commission, upon its own motion or upon complaint, 
may order the ERO to submit to the Commission a proposed 
reliability standard or a modification to a reliability 
standard that addresses a specific matter if the Commission 
considers such a new or modified reliability standard 
appropriate to carry out this section.
    (6) The final rule adopted under subsection (b) shall 
include fair processes for the identification and timely 
resolution of any conflict between a reliability standard and 
any function, rule, order, tariff, rate schedule, or agreement 
accepted, approved, or ordered by the
Commission applicable to a transmission organization. Such 
transmission organization shall continue to comply with such 
function, rule, order, tariff, rate schedule or agreement 
accepted approved, or ordered by the Commission until--
          (A) the Commission finds a conflict exists between a 
        reliability standard and any such provision;
          (B) the Commission orders a change to such provision 
        pursuant to section 206 of this part; and
          (C) the ordered change becomes effective under this 
        part.
If the Commission determines that a reliability standard needs 
to be changed as a result of such a conflict, it shall order 
the ERO to develop and file with the Commission a modified 
reliability standard under paragraph (4) or (5) of this 
subsection.
    (e)(1) The ERO may impose, subject to paragraph (2), a 
penalty on a user or owner or operator of the bulk-power system 
for a violation of a reliability standard approved by the 
Commission under subsection (d) if the ERO, after notice and an 
opportunity for a hearing--
          (A) finds that the user or owner or operator has 
        violated a reliability standard approved by the 
        Commission under subsection (d); and
          (B) files notice and the record of the proceeding 
        with the Commission.
    (2) A penalty imposed under paragraph (1) may take effect 
not earlier than the 31st day after the ERO files with the 
Commission notice of the penalty and the record of proceedings. 
Such penalty shall be subject to review by the Commission, on 
its own motion or upon application by the user, owner or 
operator that is the subject of the penalty filed within 30 
days after the date such notice is filed with the Commission. 
Application to the Commission for review, or the initiation of 
review by the Commission on its own motion, shall not operate 
as a stay of such penalty unless the Commission otherwise 
orders upon its own motion or upon application by the user, 
owner or operator that is the subject of such penalty. In any 
proceeding to review a penalty imposed under paragraph (1), the 
Commission, after notice and opportunity for hearing (which 
hearing may consist solely of the record before the ERO and 
opportunity for the presentation of supporting reasons to 
affirm, modify, or set aside the penalty), shall by order 
affirm, set aside, reinstate, or modify the penalty, and, if 
appropriate, remand to the ERO for further proceedings. The 
Commission shall implement expedited procedures for such 
hearings.
    (3) On its own motion or upon complaint, the Commission may 
order compliance with a reliability standard and may impose a 
penalty against a user or owner or operator of the bulk power 
system, if the Commission finds, after notice and opportunity 
for a hearing, that the user or owner or operator of the bulk 
power system has engaged or is about to engage in any acts or 
practices that constitute or will constitute a violation of a 
reliability standard.
    (4) The Commission shall establish regulations authorizing 
the ERO to enter into an agreement to delegate authority to a 
regional entity for the purpose of proposing reliability 
standards to the ERO and enforcing reliability standards under 
paragraph (1) if--
          (A) the regional entity is governed by an independent 
        board, a balanced stakeholder board, or a combination 
        independent and balanced stakeholder board;
          (B) the regional entity otherwise satisfies the 
        provisions of subsection (c)(1) and (2); and
          (C) the agreement promotes effective and efficient 
        administration of bulk-power system reliability.
The Commission may modify such delegation. The ERO and the 
Commission shall rebuttably presume that a proposal for 
delegation to a regional entity organized on an 
Interconnection-wide basis promotes effective and efficient 
administration of bulk power system reliability and should be 
approved. Such regulation may provide that the Commission may 
assign the ERO's authority to enforce reliability standards 
under paragraph (1) directly to a regional entity consistent 
with the requirements of this paragraph.
    (5) The Commission may take such action as is necessary or 
appropriate against the ERO or a regional entity to ensure 
compliance with a reliability standard or any Commission order 
affecting the ERO or a regional entity.
    (6) Any penalty imposed under this section shall bear a 
reasonable relation to the seriousness of the violation and 
shall take into consideration the efforts of such user, owner, 
or operator to remedy the violation in a timely manner.
    (f) The ERO shall file with the Commission for approval any 
proposed rule or proposed rule change, accompanied by an 
explanation of its basis and purpose. The Commission, upon its 
own motion or complaint, may propose a change to the rules of 
the ERO. A proposed rule or proposed rule change shall take 
effect upon a finding by the Commission, after notice and 
opportunity for comment, that the change is just, reasonable, 
not unduly discriminatory or preferential, is in the public 
interest, and satisfies the requirements of subsection (c).
    (g) The ERO shall conduct periodic assessments of the 
reliability and adequacy of the bulk power system in North 
America.
    (h) The President is urged to negotiate international 
agreements with the governments of Canada and Mexico to provide 
for effective compliance with reliability standards and the 
effectiveness of the ERO in the United States and Canada or 
Mexico.
    (i)(1) The ERO shall have authority to develop and enforce 
compliance with reliability standards for only the bulk power 
system.
    (2) This section does not authorize the ERO or the 
Commission to order the construction of additional generation 
or transmission capacity or to set and enforce compliance with 
standards for adequacy or safety of electric facilities or 
services.
    (3) Nothing in this section shall be construed to preempt 
any authority of any State to take action to ensure the safety, 
adequacy, and reliability of electric service within that 
State, as long as such action is not inconsistent with any 
reliability standard.
    (4) Within 90 days of the application of the ERO or other 
affected party, and after notice and opportunity for comment, 
the Commission shall issue a final order determining whether a 
State action is inconsistent with a reliability standard, 
taking into consideration any recommendation of the ERO.
    (5) The Commission, after consultation with the ERO, may 
stay the effectiveness of any State action, pending the 
Commission's issuance of a final order.
    (j) The Commission shall establish a regional advisory body 
on the petition of at least two-thirds of the States within a 
region that have more than one-half of their electric load 
served within the region. A regional advisory body shall be 
composed of one member from each participating State in the 
region, appointed by the Governor of each State, and may 
include representatives of agencies, States, and provinces 
outside the United States. A regional advisory body may provide 
advice to the ERO, a regional entity, or the Commission 
regarding the governance of an existing or proposed regional 
entity within the same region, whether a standard proposed to 
apply within the region is just, reasonable, not unduly 
discriminatory or preferential, and in the public interest, 
whether fees proposed to be assessed within the region are 
just, reasonable, not unduly discriminatory or preferential, 
and in the public interest and any other responsibilities 
requested by the Commission. The Commission may give deference 
to the advice of any such regional advisory body if that body 
is organized on an Interconnection-wide basis.
    (k) The provisions of this section do not apply to Alaska 
or Hawaii.
    Sec. 220. (a)(1) The Commission shall exercise its 
authority under this Act to ensure that any load-serving entity 
that, as of the date of enactment of this section--
          (A) owns generation facilities, markets the output of 
        federal generation facilities, or holds rights under 
        one or more long-term contracts to purchase electric 
        energy, for the purpose of meeting a service 
        obligation, and
          (B) by reason of ownership of transmission 
        facilities, or one or more contracts or service 
        agreements for firm transmission service, holds firm 
        transmission rights for delivery of the output of such 
        generation facilities or such purchased energy to meet 
        such service obligation, is entitled to use such firm 
        transmission rights, or equivalent financial 
        transmission rights, in order to deliver such output or 
        purchased energy, or the output of other generating 
        facilities or purchased energy to the extent 
        deliverable using such rights, to meet its service 
        obligation.
    (2) To the extent that all or a portion of the service 
obligation covered by such firm transmission rights is 
transferred to another load-serving entity, the successor load-
serving entity shall be entitled to use the firm transmission 
rights associated with the transferred service obligation. 
Subsequent transfers to another load-serving entity, or back to 
the original load-serving entity, shall be entitled to the same 
rights.
    (3) The Commission shall exercise its authority under this 
Act in a manner that facilitates the planning and expansion of 
transmission facilities to meet the reasonable needs of load-
serving entities to satisfy their service obligations.
    (b) Nothing in this section shall affect any methodology 
for the allocation of transmission rights by a Commission-
approved entity that, prior to the date of enactment of this 
section, has been authorized by the Commission to allocate 
transmission rights.
    (c) Nothing in this Act shall relieve a load-serving entity 
from any obligation under State or local law to build 
transmission or distribution facilities adequate to meet its 
service obligations.
    (d) Nothing in this section shall provide a basis for 
abrogating any contract or service agreement for firm 
transmission service or rights in effect as of the date of the 
enactment of this subsection.
    (e) For purposes of this section:
          (1) The term ``distribution utility'' means an 
        electric utility that has a service obligation to end-
        users.
          (2) The term ``load-serving entity'' means a 
        distribution utility or an electric utility (including 
        an entity described in section 201(f) or a rural 
        cooperative) that has a service obligation to end-users 
        or a distribution utility.
          (3) The term ``service obligation'' means a 
        requirement applicable to, or the exercise of authority 
        granted to, an electric utility (including an entity 
        described in section 201(f) or a rural cooperative) 
        under Federal, State or local law or under long-term 
        contracts to provide electric service to end-users or 
        to a distribution utility.
    (f) Nothing in the section shall apply to an entity located 
in an area referred to in section 212(k)(2)(A).

              SUSTAINABLE TRANSMISSION NETWORKS RULEMAKING

    Sec. 221. Within six months of enactment of this section, 
the Commission shall issue a final rule establishing 
transmission pricing policies applicable to all public 
utilities and policies for the allocation of costs associated 
with the expansion, modification or upgrade of existing 
interstate transmission facilities and for the interconnection 
of new transmission facilities for utilities and facilities 
which are not included within a Commission approved RTO. 
Consistent with section 205 of this Act, such rule shall, to 
the maximum extent practicable--
          (1) promote capital investment in the economically 
        efficient transmission systems;
          (2) encourage the construction of transmission and 
        generation facilities in a manner which provides the 
        lowest overall risk and cost to consumers;
          (3) encourage improved operation of transmission 
        facilities and deployment of transmission technologies 
        designed to increase capacity and efficiency of 
        existing networks;
          (4) ensure that the costs of any transmission 
        expansion or interconnection be allocated in such a way 
        that all users of the affected transmission system bear 
        the appropriate share of costs; and
          (5) ensure that parties who pay for facilities 
        necessary for transmission expansion or interconnection 
        receive appropriate compensation for those facilities.

                       MARKET TRANSPARENCY RULES

    Sec. 222. (a) Not later than 180 days after the date of 
enactment of this section, the Commission shall issue rules 
establishing an electronic information system to provide the 
Commission and the public with access to such information as is 
necessary or appropriate to facilitate price transparency and 
participation in markets subject to the Commission's 
jurisdiction. Such systems shall provide information about the 
availability and market price of wholesale electric energy and 
transmission services to the Commission, State commissions, 
buyers and sellers of wholesale electric energy, users of 
transmission services, and the public. The Commission shall 
have authority to obtain such information from any electric and 
transmitting utility, including any entity described in section 
2010.
    (b) The Commission shall exempt from disclosure information 
it determines would, if disclosed, be detrimental to the 
operation of an effective market or jeopardize system security. 
This section shall not apply to an entity described in section 
212(k)(2)(B) with respect to transactions for the purchase or 
sale of wholesale electric energy and transmission services 
within the area described in section 212(k)(2)(A).

                PROHIBITION ON FILING FALSE INFORMATION

    Sec. 223. It shall be a violation of this Act for any 
person or any other entity (including entities described in 
section 201(f) willfully and knowingly to report any 
information relating to the price of electricity sold at 
wholesale, which information the person or any other entity 
knew to be false at the time of the reporting, to any 
governmental entity with the intent to manipulate the data 
being compiled by such governmental entity.

                   PROHIBITION ON ROUND TRIP TRADING

    Sec. 224. (a) It shall be a violation of this Act for any 
person or any other entity (including entities described in 
section 201(f)) willfully and knowingly to enter into any 
contract or other arrangement to execute a round-trip trade for 
the purchase or sale of electric energy atwholesale.
    (b) For the purposes of this section, the term ``round trip 
trade'' means a transaction, or combination of transactions, in 
which a person or any other entity--
          (1) enters into a contract or other arrangement to 
        purchase from, or sell to, any other person or other 
        entity electric energy at wholesale;
          (2) simultaneously with entering into the contract or 
        arrangement described in paragraph (1), arranges a 
        financially offsetting trade with such other person or 
        entity for the same such electric energy, at the same 
        location, price, quantity and terms so that, 
        collectively, the purchase and sale transactions in 
        themselves result in no financial gain or loss; and
          (3) enters into the contract or arrangement with the 
        intent to deceptively affect reported revenues, trading 
        volumes, or prices.

           *       *       *       *       *       *       *

PART III--LICENSEES AND PUBLIC UTILITIES PROCEDURAL AND ADMINISTRATIVE 
PROVISIONS

           *       *       *       *       *       *       *

                               COMPLAINTS

    Sec. 306. Any person, electric utility (including entities 
described in section 210(f) and rural cooperative entities), 
State, municipality, or State commission complaining of 
anything done or omitted to be done by any licensee, 
transmitting utility, or public utility in contravention of the 
provisions of this Act may apply to the Commission by petition 
which shall briefly state the facts, whereupon a statement of 
the complaint thus made shall be forwarded by the Commission to 
such licensee, transmitting utility, or public utility, who 
shall be called upon to satisfy the complaint or to answer the 
same in writing within a reasonable time to be specified by the 
Commission. If such licensee, transmitting utility, or public 
utility shall not satisfy the complaint within the time 
specified or there shall appear to be any reasonable ground for 
investigating such complaint, it shall be the duty of the 
Commission to investigate the matters complained of in such 
manner and by such means as it shall find proper.

                      INVESTIGATIONS BY COMMISSION

    Sec. 307. (a) The Commission may investigate any facts, 
conditions, practices, or matters which it may find necessary 
or proper in order to determine whether any person or 
transmitting utility has violated or is about to violate any 
provision of this Act or any rule, regulation, or order 
thereunder, or to aid in the enforcement of the provisions of 
this Act or in prescribing rules or regulations thereunder, or 
in obtaining information to serve as a basis for recommending 
further legislation concerning the matters to which this Act 
relates.

           *       *       *       *       *       *       *

                   REHEARINGS; COURT REVIEW OF ORDERS

    Sec. 313. (a) Any person, electric utility, State, 
municipality, or State to which such person, State, 
municipality, or State commission is a party may apply for a 
rehearing within thirty days after the issuance of such order. 
* * *

                  GENERAL FORFEITURE PROVISIONS; VENUE

    Sec. 315. * * *
    (c) This [subsection] section 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.

           *       *       *       *       *       *       *

                           GENERAL PENALTIES

    Sec. 316. (a) Any person who willfully and knowingly does 
or causes or suffers to be done any act, matter, or thing in 
this Act prohibited or declared to be unlawful, or who 
willfully and knowingly omits or fails to do any act, matter, 
or thing in this Act required to be done, or willfully and 
knowingly causes or suffers such omission or failure, shall, 
upon conviction thereof, be punished by a fine of not more than 
[$5,000] $1,000,000 or by imprisonment for not more than [two 
years] five years, or both.
    (b) Any person who willfully and knowingly violates any 
rule, regulation, restriction, condition, or order made or 
imposed by the Commission under authority of this Act, or any 
rule or regulation imposed by the Secretary of the Army under 
authority of Part I of this Act shall, in addition to any other 
penalties provided by law, be punished upon conviction thereof 
by a fine of not exceeding [$500] $25,000 for each and every 
day during which such offense occurs.
    [(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.]

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] Part 
II 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] Part II or any provision of 
any rule or order thereunder shall be subject to a civil 
penalty of not more than [$10,000] $1,000,000 for each day that 
such violation continues.

           *       *       *       *       *       *       *

                       [CONFLICT OF JURISDICTION

    Sec. 318. If, with respect to the issue, sale, or guaranty 
of a security, or assumption of obligation or liability in 
respect of a security, the method of keeping accounts, the 
filing of reports, or the acquisition or disposition of any 
security, capital assets, facilities, or any other subject 
matter, any person is subject both to a requirement of the 
Public Utility Holding Company Act of 1935 or of a rule, 
regulation, or order thereunder and to a requirement of this 
Act or of a rule, regulation, or order thereunder, the 
requirement of the Public Utility Holding Company Act of 1935 
shall apply to such person, and such person shall not be 
subject to the requirement of this Act, or of any rule, 
regulation, or order thereunder, with respect to the same 
subject matter, unless the Securities and Exchange Commission 
has exempted such person from such requirement of the Public 
Utility Holding Company Act of 1935, in which case the 
requirements of this Act shall apply to such person.]
                              ----------                              

               PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

  Act of August 26, 1935, chapter 687, as amended (15 U.S.C. 79-79z-6)

              [PUBLIC UTILITY HOLDING COMPANY ACT OF 1935

   [(References in brackets [  ] are to title 15, United States Code)

[AN ACT To provide for control and regulation of public-utility holding 
                   companies, and for other purposes

    [Be it enacted by the Senate and House of Representatives 
of the United States of America in Congress assembled, That 
this Act may be cited as the ``Public Utility Act of 1935.''

         [TITLE I--CONTROL OF PUBLIC-UTILITY HOLDING COMPANIES

              [NECESSITY FOR CONTROL OF HOLDING COMPANIES

    [Section 1. (a) Public-utility holding companies and their 
subsidiary companies are affected with a national public 
interest in that, among other things, (1) their securities are 
widely marketed and distributed by means of the mails and 
instrumentalities of interstate commerce and are sold to a 
large number of investors in different States; (2) their 
service, sales, construction, and other contracts and 
arrangements are often made and performed by means of the mails 
and instrumentalities of interstate commerce; (3) their 
subsidiary public-utility companies often sell and transport 
gas and electric energy by the use of means and 
instrumentalities of interstate commerce; (4) their practices 
in respect of and control over subsidiary companies often 
materially affect the interstate commerce in which those 
companies engage; (5) their activities extending over many 
States are not susceptible of effective control by any State 
and make difficult, if not impossible, effective State 
regulation of public-utility companies.
    [(b) Upon the basis of facts disclosed by the reports of 
the Federal Trade Commission made pursuant to S. Res. 83 
(Seventieth Congress, first session), the reports of the 
Committee on Interstate and Foreign Commerce, House of 
Representatives, made pursuant to H. Res. 59 (Seventy-second 
Congress, first session) and H.J. Res. 572 (Seventy-second 
Congress, second session) and otherwise disclosed and 
ascertained, it is hereby declared that the national public 
interest, the interest of investors in the securities of 
holding companies and their subsidiary companies and 
affiliates, and the interest of consumers of electric energy 
and natural and manufactured gas, are or may be adversely 
affected--
          [(1) when such investors cannot obtain the 
        information necessary to appraise the financial 
        position or earning power of the issuers, because of 
        the absence of uniform standard accounts; when such 
        securities are issued without the approval or consent 
        of the States having jurisdiction over subsidiary 
        public-utility companies; when such securities are 
        issued upon the basis of fictitious or unsound asset 
        values having no fair relation to the sums invested in 
        or the earning capacity of the properties and upon the 
        basis of paper profits from intercompany transactions, 
        or in anticipation of excessive revenues from 
        subsidiary public-utility companies; when such 
        securities are issued by a subsidiary public-utility 
        company under circumstances which subject such company 
        to the burden of supporting an overcapitalized 
        structure and tend to prevent voluntary rate 
        reductions;
          [(2) when subsidiary public-utility companies are 
        subjected to excessive charges for services, 
        construction work, equipment, and materials, or enter 
        into transactions in which evils result from an absence 
        of arm's-length bargaining or from restraint of free 
        and independent competition; when service, management, 
        construction, and other contracts involve the 
        allocation of charges among subsidiary public-utility 
        companies in different States so as to present problems 
        of regulation which cannot be dealt with effectively by 
        the States;
          [(3) when control of subsidiary public-utility 
        companies affects the accounting practices and rate, 
        dividend, and other policies of such companies so as to 
        complicate and obstruct State regulation of such 
        companies, or when control of such companies is exerted 
        through disproportionately small investment;
          [(4) when the growth and extension of holding 
        companies bears no relation to economy of management 
        and operation or the integration and coordination of 
        related operating properties; or
          [(5) when in any other respect there is lack of 
        economy of management and operation of public-utility 
        companies or lack of efficiency and adequacy of service 
        rendered by such companies, or lack of effective public 
        regulation, or lack of economies in the raising of 
        capital.
    [(c) When abuses of the character above enumerated become 
persistent and wide-spread the holding company becomes an 
agency which, unless regulated, is injurious to investors, 
consumers, and the general public; and it is hereby declared to 
be the policy of this title, in accordance with which policy 
all the provisions of this title shall be interpreted, to meet 
the problems and eliminate the evils as enumerated in this 
section, connected with public-utility holding companies which 
are engaged in interstate commerce or in activities which 
directly affect or burden interstate commerce; and for the 
purpose of effectuating such policy to compel the 
simplification of public-utility holding-company systems and 
the elimination therefrom of properties detrimental to the 
proper functioning of such systems, and to provide as soon as 
practicable for the elimination of public-utility holding 
companies except as otherwise expressly provided in this title.

                              [DEFINITIONS

    [Sec. 2. (a) When used in this title, unless the context 
otherwise requires--
          [(1) ``Person'' means an individual or company.
          [(2) ``Company'' means a corporation, a partnership, 
        an association, a joint-stock company, a business 
        trust, or an organized group of  persons, whether 
        incorporated or not; or any receiver, trustee, or other 
        liquidating agent of any of the foregoing in his 
        capacity as such.
          [(3) ``Electric utility company'' means any company 
        which owns or operates facilities used for the 
        generation, transmission, or distribution of electric 
        energy for sale, other than sale to tenants or 
        employees of the company operating such facilities for 
        their own use and not for resale. The Commission, upon 
        application, shall by order declare a company operating 
        any such facilities not to be an electric utility 
        company if the Commission finds that (A) such company 
        is primarily engaged in one or more businesses other 
        than the business of an electric utility company, and 
        by reason of the small amount of electric energy sold 
        by such company it is not necessary in the public 
        interest or for the protection of investors or 
        consumers that such company be considered an electric 
        utility company for the purposes of this title, or (B) 
        such company is one operating within a single State, 
        and substantially all of its outstanding securities are 
        owned directly or indirectly by another company to 
        which such operating company sells or furnishes 
        electric energy which it generates; such other company 
        uses and does not resell such electric energy, is 
        engaged primarily in manufacturing (other than the 
        manufacturing of electric energy or gas) and is not 
        controlled by any other company; and by reason of the 
        small amount of electric energy sold or furnished by 
        such operating company to other persons it is not 
        necessary in the public interest or for the protection 
        of investors or consumers that it be considered an 
        electric utility company for the purposes of this 
        title. The filing of an application hereunder in good 
        faith shall exempt such company (and the owner of the 
        facilities operated by such company) from the 
        application of this paragraph until the Commission has 
        acted upon such application. As a condition to the 
        entry of any such order, and as a part thereof, the 
        Commission may require application to be made 
        periodically for a renewal of such order, and may 
        require the filing of such periodic or special reports 
        regarding the business of the company as the Commission 
        may find necessary or appropriate to insure that such 
        company continues to be entitled to such exemption 
        during the period for which such order is effective. 
        The Commission, upon its own motion or upon 
        application, shall revoke such order whenever it finds 
        that the conditions specified in clause (A) or (B) are 
        not satisfied in the case of such company. Any action 
        of the Commission under the preceding sentence shall be 
        by order. Application under this paragraph may be made 
        by the company in respect of which the order is to be 
        issued or by the owner of the facilities operated by 
        such company. Any order issued under this paragraph 
        shall apply equally to such company and such owner. The 
        Commission may by rules or regulations conditionally or 
        unconditionally provide that any specified class or 
        classes of companies which it determines to satisfy the 
        conditions specified in clause (A) or (B), and the 
        owners of the facilities operated by such companies, 
        shall not be deemed electric utility companies within 
        the meaning of this paragraph.
          [(4) ``Gas utility company'' means any company which 
        owns operates facilities used for the distribution at 
        retail (other than distribution only in enclosed 
        portable containers, or distribution to tenants or 
        employees of the company operating such facilities for 
        their own use and not for resale) of natural or 
        manufactured gas for heat, light, or power. The 
        Commission, upon application, shall by order declare a 
        company operating any such facilities not to be a gas 
        utility company if the Commission finds that (A) such 
        company is primarily engaged in one or more businesses 
        other than the business of a gas utility company, and 
        (B) by reason of the small amount of natural or 
        manufactured gas distributed at retail by such company 
        it is not necessary in the public interest or for the 
        protection of investors or consumers that such company 
        be considered a gas utility company for the purposes of 
        this title. The filing of an application hereunder in 
        good faith shall exempt such company (and the owner of 
        the facilities operated by such company) from the 
        application of this paragraph until the Commission has 
        acted upon such application. As a condition to the 
        entry of any such order, and as a part thereof, the 
        Commission may require application to be made 
        periodically for a renewal of such order, and may 
        require the filing of such periodic or special reports 
        regarding the business of the company as the Commission 
        may find necessary or appropriate to insure that such 
        company continues to be entitled to such exemption 
        during the period for which such order is effective. 
        The Commission, upon its own motion or upon 
        application, shall revoke such order whenever it finds 
        that the conditions specified in clauses (A) and (B) 
        are not satisfied in the case of such company. Any 
        action of the Commission under the preceding sentence 
        shall be by order. Application under this paragraph may 
        be made by the company in respect of which the order is 
        to be issued or by the owner of the facilities operated 
        by such company. Any order issued under this paragraph 
        shall apply equally to such company and such owner. The 
        Commission may by rules or regulations conditionally or 
        unconditionally provide that any specified class or 
        classes of companies which it determines to satisfy the 
        conditions specified in clauses (A) and (B), and the 
        owners of the facilities operated by such companies, 
        shall not be deemed gas utility companies within the 
        meaning of this paragraph.
          [(5) ``Public-utility company'' means an electric 
        utility company or a gas utility company.
          [(6) ``Commission'' means the Securities and Exchange 
        Commission.
          [(7) ``Holding company'' means--
                  [(A) any company which directly or indirectly 
                owns, controls, or holds with power to vote, 10 
                per centum or more of the outstanding voting 
                securities of a public-utility company or of a 
                company which is a holding company by virtue of 
                this clause or clause (B), unless the 
                Commission, as hereinafter provided, by order 
                declares such company not lo be a holding 
                company; and
                  [(B) any person which the Commission 
                determines, after notice and opportunity for 
                hearing, directly or indirectly to exercise 
                (either alone or pursuant to an arrangement or 
                understanding with one or more other persons) 
                such a controlling influence over the 
                management or policies of any public-utility or 
                holding company as to make it necessary or 
                appropriate in the public interest or for the 
                protection of investors or consumers that such 
                person be subject to the obligations, duties, 
                and liabilities imposed in this title upon 
                holding companies.
        [The Commission, upon application, shall by order 
        declare that a company is not a holding company under 
        clause (A) if the Commission finds that the applicant 
        (i) does not, either alone or pursuant to an 
        arrangement or understanding with one or more other 
        persons, directly or indirectly control a public-
        utility or holding company either through one or more 
        intermediary persons or by any means or device 
        whatsoever, (ii) is not an intermediary company through 
        which such control is exercised, and (iii) does not, 
        directly or indirectly, exercise (either alone or 
        pursuant to an arrangement or understanding with one or 
        more other persons) such a controlling influence over 
        the management or policies of any public-utility or 
        holding company as to make it necessary or appropriate 
        in the public interest or for the protection of 
        investors or consumers that the applicant be subject to 
        the obligations, duties, and liabilities imposed in 
        this title upon holding companies. The filing of an 
        application hereunder in good faith by a company other 
        than a registered holding company shall exempt the 
        applicant from any obligation, duty, or liability 
        imposed in this title upon the applicant as a holding 
        company, until the Commission has acted upon such 
        application. Within a reasonable time after the receipt 
        of any application hereunder, the Commission shall 
        enter an order granting, or, after notice and 
        opportunity for hearing, denying or otherwise disposing 
        of, such application. As a condition to the entry of 
        any order granting such application and as a part of 
        any such order, the Commission may require the 
        applicant to apply periodically for a renewal of such 
        order and to do or refrain from doing such acts or 
        things, in respect of exercise of voting rights, 
        control over proxies, designation of officers and 
        directors, existence of interlocking officers, 
        directors and other relationships, and submission of 
        periodic or special reports regarding affiliations or 
        intercorporate relationships of the applicant, as the 
        Commission may find necessary or appropriate to ensure 
        that in the case of the applicant the conditions 
        specified in clauses (i), (ii), and (iii) are satisfied 
        during the period for which such order is effective. 
        The Commission, upon its own motion or upon application 
        of the company affected, shall revoke the order 
        declaring such company not to be a holding company 
        whenever in its judgment any condition specified in 
        clause (i), (ii), or (iii) is not satisfied in the case 
        of such company, or modify the terms of such order 
        whenever in its judgment such modification is necessary 
        to ensure that in the case of such company the 
        conditions specified in clauses (i), (ii), and (iii) 
        are satisfied during the period for which such order is 
        effective. Any action of the Commission under the 
        preceding sentence shall be by order.
          [(8) ``Subsidiary company'' of a specified holding 
        company means--
                  [(A) any company 10 per centum or more of the 
                outstanding voting securities of which are 
                directly or indirectly owned, controlled, or 
                held with power to vote, by such holding 
                company (or by a company that is a subsidiary 
                company of such holding company by virtue of 
                this clause or clause (B)), unless the 
                Commission, as hereinafter provided, by order 
                declares such company not to be a subsidiary 
                company of such holding company; and
                  [(B) any person the management or policies of 
                which the Commission, after notice and 
                opportunity for hearing, determines to be 
                subject to a controlling influence, directly or 
                indirectly, by such holding company (either 
                alone or pursuant to an arrangement or 
                understanding with one or more other persons) 
                so as to make it necessary or appropriate in 
                the public interest or for the protection of 
                investors or consumers that such person be 
                subject to the obligations, duties, and 
                liabilities imposed in this title upon 
                subsidiary companies of holding companies.
        [The Commission, upon application, shall by order 
        declare that a company is not a subsidiary company of a 
        specified holding company under clause (A) if the 
        Commission finds that (i) the applicant is not 
        controlled, directly or indirectly, by such holding 
        company (either alone or pursuant to an arrangement or 
        understanding with one or more other persons) either 
        through one or more intermediary persons or by any 
        means or device whatsoever, (ii) the applicant is not 
        an intermediary company through which such control of 
        another company is exercised, and (iii) the management 
        or policies of the applicant are not subject to a 
        controlling influence, directly or indirectly, by such 
        holding company (either alone or pursuant to an 
        arrangement or understanding with one or more other 
        persons) so as to make it necessary or appropriate in 
        the public interest or for the protection of investors 
        or consumers that the applicant be subject to the 
        obligations, duties, and liabilities imposed in this 
        title upon subsidiary companies of holding companies. 
        The filing of an application hereunder in good faith 
        shall exempt the applicant from any obligation, duty, 
        or liability imposed in this title upon the applicant 
        as a subsidiary company of such specified holding 
        company until the Commission has acted upon such 
        application. Within a reasonable time after the receipt 
        of any application hereunder, the Commission shall 
        enter an order granting, or, after notice and 
        opportunity for hearing, denying or otherwise disposing 
        of, such application. As a condition to the entry of, 
        and as a part of, any order granting such application, 
        the Commission may require the applicant to apply 
        periodically for a renewal of such order and to file 
        such periodic or special reports regarding the 
        affiliations or intercorporate relationships of the 
        applicant as the Commission may find necessary or 
        appropriate to enable it to determine whether in the 
        case of the applicant the conditions specified in 
        clauses (i), (ii), and (iii) are satisfied during the 
        period for which such order is effective. The 
        Commission, upon its own motion or upon application, 
        shall revoke the order declaring such company not to be 
        a subsidiary company whenever in its judgment any 
        condition specified in clause (i), (ii), or (iii) is 
        not satisfied in the case of such company, or modify 
        the terms of such order whenever in its judgment such 
        modification is necessary to ensure that in the case of 
        such company the conditions specified in clauses (i), 
        (ii), and (iii) are satisfied during the period for 
        which such order is effective. Any action of the 
        Commission under the preceding sentence shall be by 
        order. Any application under this paragraph may be made 
        by the holding company or the company in respect of 
        which the order is to be entered, but as used in this 
        paragraph the term ``applicant'' means only the company 
        in respect of which the order is to be entered.
          [(9) ``Holding-company system'' means any holding 
        company, together with all its subsidiary companies, 
        and all mutual service companies (as defined in 
        paragraph (13) of this subsection) of which such 
        holding company or any subsidiary company thereof is a 
        member company (as defined in paragraph (14) of this 
        subsection).
          [(10) ``Associate company'' of a company means any 
        company in the same holding-company system with such 
        company.
          [(11) ``Affiliate'' of a specified company means--
                  [(A) any person that directly or indirectly 
                owns, controls, or holds with power to vote, 5 
                per centum or more of the outstanding voting 
                securities of such specified company;
                  [(B) any company 5 per centum or more of 
                whose outstanding voting securities are owned, 
                controlled, or held with power to vote, 
                directly or indirectly, by such specified 
                company;
                  [(C) any individual who is an officer or 
                director of such specified company, or of any 
                company which is an affiliate thereof under 
                clause (A) of this paragraph; and
                  [(D) any person or class of persons that the 
                Commission determines, after appropriate notice 
                and opportunity for hearing, to stand in such 
                relation to such specified company that there 
                is liable to be such an absence of arm's length 
                bargaining in transactions between them as to 
                make it necessary or appropriate in the public 
                interest or for the protection of investors or 
                consumers that such person be subject to the 
                obligations, duties, and liabilities imposed in 
                this title upon affiliates of a company.
          [(12) ``Registered holding company'' means a person 
        whose registration is in effect under section 5.
          [(13) ``Mutual service company'' means a company 
        approved mutual service company under section 13.
          [(14) ``Member company'' means a company which is a 
        member of an association or group of companies mutually 
        served by a mutual service company.
          [(15) ``Director'' means any director of a 
        corporation or any individual who performs similar 
        functions in respect of any company.
          [(16) ``Security'' means any note, draft, stock, 
        treasury stock, bond, debenture, certificate of 
        interest or participation in any profit-sharing 
        agreement or in any oil, gas, other mineral royalty or 
        lease, any collateral-trust certificate, 
        preorganization certificate or subscription, 
        transferable share, investment contract, voting-trust 
        certificate, certificate of deposit for a security, 
        receiver's or trustee's certificate, or, in general, 
        any instrument commonly known as a ``security''; or any 
        certificate of interest or participation in, temporary 
        or interim certificate for, receipt for, guaranty of, 
        assumption of liability on, or warrant or right to 
        subscribe to or purchase, any of the foregoing.
          [(17) ``Voting security'' means any security 
        presently entitling the owner or holder thereof to vote 
        in the direction or management of the affairs of a 
        company, or any security issued under or pursuant to 
        any trust, agreement, or arrangement whereby a trustee 
        or trustees or agent or agents for the owner or holder 
        of such security are presently entitled to vote in the 
        direction or management of the affairs of a company; 
        and a specified per centum of the outstanding voting 
        securities of a company means such amount of the 
        outstanding voting securities of such company as 
        entitles the holder or holders thereof to cast said 
        specified per centum of the aggregate votes which the 
        holders of all the outstanding voting securities of 
        such company are entitled to cast in the direction or 
        management of the affairs of such company.
          [(18) ``Utility assets'' means the facilities, in 
        place, of any electric utility company or gas utility 
        company for the production, transmission, 
        transportation, or distribution of electric energy or 
        natural or manufactured gas.
          [(19) ``Service contract'' means any contract, 
        agreement, or understanding whereby a person undertakes 
        to sell or furnish, for a charge, any managerial, 
        financial, legal, engineering, purchasing, marketing, 
        auditing, statistical, advertising, publicity, tax 
        research, or any other service, information, or data.
          [(20) ``Sales contract'' means any contract, 
        agreement, or understanding whereby a person undertakes 
        to sell, lease, or furnish, for a charge, any goods, 
        equipment, materials, supplies, appliances, or similar 
        property. As used in this paragraph the term 
        ``property'' does not include electric energy or 
        natural or manufactured gas.
          [(21) ``Construction contract'' means any contract, 
        agreement, or understanding for the construction, 
        extension, improvement, maintenance, or repair of the 
        facilities or any park thereof of a company for a 
        charge.
          [(22) ``Buy'', ``acquire'', ``acquisition'', or 
        ``purchase'' includes any purchase, acquisition by 
        lease, exchange, merger, consolidation, or other 
        acquisition.
          [(23) ``Sale'' or ``sell'' includes any sale, 
        disposition by lease, exchange or pledge, or other 
        disposition.
          [(24) ``State'' means any State of the United States 
        or the District of Columbia.
          [(25) ``United States'', when used in a geographical 
        sense, means the States.
          [(26) ``State commission'' means any commission, 
        board, agency, or officer, by whatever name designated, 
        of a State, municipality, or other political 
        subdivision of a State which under the law of such 
        State has jurisdiction to regulate public utility 
        companies.
          [(27) ``State securities commission'' means any 
        commission, board, agency, or officer, by whatever name 
        designated, other than a State commission as defined in 
        paragraph (26) of this subsection, which under the law 
        of a State has jurisdiction to regulate, approve, or 
        control the issue or sale of a security by a company.
          [(28) ``Interstate commerce'' means trade, commerce, 
        transportation, transmission, or communication among 
        the several States or between any State and any place 
        outside thereof.
          [(29) ``Integrated public-utility system'' means--
                  [(A) As applied to electric utility 
                companies, a system consisting of one or more 
                units of generating plants and/ or transmission 
                lines and/or distributing facilities, whose 
                utility assets, whether owned by one or more 
                electric utility companies, are physically 
                interconnected or capable of physical 
                interconnection and which under normal 
                conditions may be economically operated as a 
                single interconnected and coordinated system 
                confined in its operations to a single area or 
                region, in one or more States, not so large as 
                to impair (considering the state of the art and 
                the area or region affected) the advantages of 
                localized management, efficient operation, and 
                the effectiveness of regulation; and
                  [(B) As applied to gas utility companies, a 
                system consisting of one or more gas utility 
                companies which are so located and related that 
                substantial economies may be effectuated by 
                being operated as a single coordinated system 
                confined in its operations to a single area or 
                region, in one or more States, not so large as 
                to impair (considering the state of the art and 
                the area or region affected) the advantages of 
                localized management, efficient operation, and 
                the effectiveness of regulation; Provided, That 
                gas utility companies deriving natural gas from 
                a common source of supply may be deemed to be 
                included in a single area or region.
    [(b) No person shall be deemed to be a holding company 
under clause (B) of paragraph (7) of subsection (a), or a 
subsidiary company under clause (B) of paragraph (8) of such 
subsection, or an affiliate under clause (D) of paragraph (11) 
of such subsection, unless the Commission, after appropriate 
notice and opportunity for hearing, has issued an order 
declaring such person to be a holding company, a subsidiary 
company, or an affiliate, or declaring a class of which such 
person is a member to be affiliates. Such an order shall not 
become effective for at least thirty days after the mailing of 
a copy thereof to the person thereby declared to be a holding 
company, subsidiary company, or affiliate; or, in the case of 
determination of affiliates by classes, until at least thirty 
days after appropriate publication thereof in such manner as 
the Commission shall determine. Whenever the Commission, on its 
own motion or upon application by the person declared to be a 
holding company, subsidiary company, or affiliate, finds that 
the circumstances which gave rise to the issuance of any such 
order no longer exist, the Commission shall by order revoke 
such order.
    [(c) No provision in this title shall apply to, or be 
deemed to include, the United States, a State, or any political 
subdivision of a State, or any agency, authority, or 
instrumentality of any one or more of the foregoing, or any 
corporation which is wholly owned directly or indirectly by any 
one or more of the foregoing, or any officer, agent, or 
employee of any of the foregoing acting as such in the course 
of his official duty, unless such provision makes specific 
reference thereto.

   POWER TO MAKE PARTICULAR EXEMPTIONS REGARDING HOLDING COMPANIES, 
                  SUBSIDIARY COMPANIES, AND AFFILIATES

    [Sec. 3. (a)\1\ The Commission, by rules and regulations 
upon its own motion, or by order upon application, shall exempt 
any holding company, and every subsidiary company thereof as 
such, from any provision or provisions of this title, unless 
and except insofar as it finds the exemption detrimental to the 
public interest or the interest of investors or consumers, if--
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    \1\Public Law 99-648 (100 Stat. 3632), entitled ``An Act to clarify 
the exemptive authority of the Securities and Exchange Commission,'' 
provides as follows:
    ``Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled, That notwithstanding 
section 3(a) of the Public Utility Holding Company Act of 1935 (15 
U.S.C. 79c(a)), a holding company which has only one subsidiary company 
that is solely e gas utility company, as defined in said Act, shall be 
exempt from all provisions, except section 9(a)(2), of said Act if 
neither the holding company nor any other subsidiary company is a 
public utility company, the operations of such subsidiary gas utility 
company do not exceed beyond the State in which it is organized, the 
subsidiary company was incorporated on June 16, 1986, for the express 
purpose of operating as a gas utility company, and all of whose voting 
securities are owned by the holding company, and neither the holding 
company, nor any of its subsidiary companies are an aged in residential 
or commercial plumbing, heating, refrigeration, air-conditioning, or in 
the sale, installation or servicing of such or related equipment.''
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          [(1) such holding company, and every subsidiary 
        company thereof which is a public-utility company from 
        which such holding company derives, directly or 
        indirectly, any material part of its income, are 
        predominantly intrastate in character and carry on 
        their business substantially in a single State in which 
        such holding company and every such subsidiary company 
        thereof are organized;
          [(2) such holding company is predominantly a public-
        utility company whose operations as such do not extend 
        beyond the State in which it is organized and States 
        contiguous thereto;
          [(3) such holding company is only incidentally a 
        holding company, being primarily engaged or interested 
        in one or more businesses other than the business of a 
        public-utility company and (A) not deriving, directly 
        or indirectly, any material part of its income from any 
        one or more subsidiary companies, the principal 
        business of which is that of a public-utility company, 
        or (B) deriving a material part of its income from any 
        one or more such subsidiary companies, if substantially 
        all the outstanding securities of such companies are 
        owned, directly or indirectly, by such holding company;
          [(4) such holding company is temporarily a holding 
        company solely by reason of the acquisition of 
        securities for purposes of liquidation or distribution 
        in connection with a bona fide debt previously 
        contracted or in connection with a bona fide 
        arrangement for the underwriting or distribution of 
        securities; or
          [(5) such holding company is not, and derives no 
        material part of its income, directly or indirectly, 
        from any one or more subsidiary companies which are, a 
        company or companies the principal business of which 
        within the United States is that of public-utility 
        company.
    [(b) The Commission, by rules and regulations upon its own 
motion, or by order upon application, shall exempt any 
subsidiary company, as such, of a holding company from any 
provision or provisions of this title, the application of which 
to such subsidiary company the Commission finds is not 
necessary in the public interest or for the protection of 
investors, if such subsidiary company derives no material part 
of its income, directly or indirectly, from sources within the 
United States, and neither it nor any of its subsidiary 
companies is a public-utility company operating in the United 
States.
    [(c) Within a reasonable time after the receipt of an 
application for exemption under subsection (a) or (b), the 
Commission shall enter an order granting, or, after notice and 
opportunity for hearing, denying or otherwise disposing of such 
application. The filing of an application in good faith under 
subsection (a) by a person other than a registered holding 
company shall exempt the applicant from any obligation, duty, 
or liability imposed in this title upon the applicant as a 
holding company until the Commission has acted upon such 
application. The filing of an application in good faith under 
subsection (b) shall exempt the applicant from any obligation, 
duty, or liability imposed in this title upon the applicant as 
a subsidiary company until the Commission has acted upon such 
application. Whenever the Commission, on its own motion, or 
upon application by the holding company or any subsidiary 
company thereof exempted by any order issued under subsection 
(a), or by the subsidiary company exempted by any order issued 
under subsection (b), finds that the circumstances which gave 
rise to the issuance of such order no longer exist, the 
Commission shall by order revoke such order.
    [(d) The Commission may, by rules and regulations, 
conditionally or unconditionally exempt any specified class or 
classes of persons from the obligations, duties, or liabilities 
imposed upon such persons as subsidiary companies or affiliates 
under any provision or provisions of this title, and may 
provide within the extent of any such exemption that such 
specified class or classes of persons shall not be deemed 
subsidiary companies or affiliates within the meaning of any 
such provision or provisions, if and to the extent that it 
deems the exemption necessary or appropriate in the public 
interest or for the protection of investors or consumers and 
not contrary to the purposes of this title.

            [TRAN8ACTIONS BY UNREGISTERED HOLDING COMPANIES

    [Sec. 4. (a) After December 1, 1935, unless a holding 
company is registered under section 5, it shall be unlawful for 
such holding company, directly or indirectly--
          [(1) to sell, transport, transmit, or distribute, or 
        own or operate any utility assets for the 
        transportation, transmission, or distribution of, 
        natural or manufactured gas or electric energy in 
        interstate commerce;
          [(2) by use of the mails or any means or 
        instrumentality of interstate commerce, to negotiate, 
        enter into, or take any step in the performance of, any 
        service, sales, or construction contract undertaking to 
        perform services or construction work for, or sell 
        goods to, any public-utility company or holding 
        company;
          [(3) to distribute or make any public offering for 
        sale or exchange of any security of such holding 
        company, any subsidiary company or affiliate of such 
        holding company, any public-utility company, or any 
        holding company, by use of the mails or any means or 
        instrumentality of interstate commerce, or to sell any 
        such security having reason to believe that such 
        security, by use of the mails or any means or 
        instrumentality of interstate commerce, will be 
        distributed or made the subject of a public offering;
          [(4) by use of the mails or any means or 
        instrumentality of interstate commerce, to acquire or 
        negotiate for the acquisition of any security or 
        utility assets of any subsidiary company or affiliate 
        of such holding company, any public-utility company, 
        orany holding company;
          [(5) to engage in any business in interstate 
        commerce; or
          [(6) to own, control, or hold with power to vote, any 
        security of any subsidiary company thereof that does 
        any of the acts enumerated in paragraphs (1) to (5), 
        inclusive, of this subsection.
    [(b) Every holding company which has outstanding any 
security any of which, by use of the mails or any means or 
instrumentality of interstate commerce, has been distributed or 
made the subject of a public offering subsequent to January 1, 
1925, and any of which security is owned or held on October 1, 
1935 (or, if such company is not a holding company on that 
date, on the date such company becomes a holding company) by 
persons not resident in the State in which such holding company 
is organized, shall register under section 5 on or before 
December 1, 1935 or the thirtieth day after such company 
becomes a holding company, whichever date is later.

                   [REGISTRATION OF HOLDING COMPANIES

    [Sec. 5. (a) On or at any time after October 1, 1935, any 
holding company or any person purposing to become a holding 
company may register by filing with the Commission a 
notification of registration, in such form as the Commission 
may by rules and regulations prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors or consumers. A person shall be deemed to be 
registered upon receipt by the Commission of such notification 
of registration.
    [(b) It shall be the duty of every registered holding 
company to file with the Commission, within such reasonable 
time after registration as the Commission shall fix by rules 
and regulations or order, a registration statement in such form 
as the Commission shall by rules and regulations or order 
prescribe as necessary or appropriate in the public interest or 
for the protection of investors or consumers. Such registration 
statement shall include--
          [(1) such copies of the charter or articles of 
        incorporation, partnership, or agreement, with all 
        amendments thereto, and the bylaws, trust indentures, 
        mortgages, underwriting arrangements, voting-trust 
        agreements, and similar documents, by whatever name 
        known, of or relating to the registrant or any of its 
        associate companies as the Commission may by rules and 
        regulations or order prescribe as necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers;
          [(2) such information in such form and in such detail 
        relating to, and copies of such documents of or 
        relating to, the registrant and its associate companies 
        as the Commission may by rules and regulations or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers in respect of--
                  [(A) the organization and financial structure 
                of such companies and the nature of their 
                business;
                  [(B) the terms, position, rights, and 
                privileges of the different classes of their 
                securities outstanding;
                  [(C) the terms and underwriting arrangements 
                under which their securities, during not more 
                than the five preceding years, have been 
                offered to the public or otherwise disposed of 
                and the relations of underwriters to, and their 
                interest in, such companies;
                  [(D) the directors and officers of such 
                companies, their remuneration, their interest 
                in the securities of, their material contracts 
                with, and their borrowings from, any of such 
                companies;
                  [(E) bonus and profit-sharing arrangements;
                  [(F) material contracts, not made in the 
                ordinary course of business, and service, 
                sales, and construction contracts;
                  [(G) options in respect of securities;
                  [(H) balance sheets for not more than the 
                five preceding fiscal years certified, if 
                required by the rules and regulations of the 
                Commission, by an independent public 
                accountant; 
                  [(I) profit and loss statements for not more 
                than the five preceding fiscal years, 
                certified, if required by the rules and 
                regulations of the Commission, by an 
                independent public accountant; 
          [(3) such further information or documents regarding 
        the registrant or its associate companies or the 
        relations between them as the Commission may by rules 
        and regulations or order prescribe as necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers.
    [(c) The Commission by such rules and regulations or order 
as it deems necessary or appropriate in the public interest or 
for the protection of investors or consumers, may permit a 
registrant to file a preliminary registration statement without 
complying with the provisions of subsection (b); but every 
registrant shall file a complete registration statement with 
the Commission within such reasonable period of time as the 
Commission shall fix by rules and regulations or order, but not 
later than one year after the date of registration.
    [(d) Whenever the Commission, upon application, finds that 
a registered holding company has ceased to be a holding 
company, it shall so declare by order and upon the taking 
effect of such order the registration of such company shall, 
upon such terms and conditions as the Commission finds and in 
such order prescribes as necessary for the protection of 
investors, cease to be in effect. The denial of any such 
application by the Commission shall be by order.

  [LAWFUL SECURITY TRANSACTIONS BY REGISTERED HOLDING AND SUBSIDIARY 
                               COMPANIES

    [Sec. 6. (a) Except in accordance with a declaration 
effective under section 7 and with the order under such section 
permitting such declaration to become effective, it shall be 
unlawful for any registered holding company or subsidiary 
company thereof, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, directly 
or indirectly (1) to issue or sell any security of such 
company; or (2) to exercise any privilege or right to alter the 
priorities, preferences, voting power, or other rights of the 
holders of an outstanding security of such company. 
    [(b) The provisions of subsection (a) shall not apply to 
the issue, renewal, or guaranty by a registered holding company 
or subsidiary company thereof of a note or draft (including the 
pledge of any security as collateral therefor) if such note or 
draft (1) is not part of a public offering, (2) matures or is 
renewed for not more than nine months, exclusive of days of 
grace, after the date of such issue, renewal, or guaranty 
thereof, and (3) aggregates (together with all other then 
outstanding notes and drafts of a maturity of nine months or 
less, exclusive of days of grace, as to which such company is 
primarily or secondarily liable) not more than 5 per centum of 
the principal amount and par value of the other securities of 
such company then outstanding, or such greater per centum 
thereof as the Commission upon application may by order 
authorize as necessary or appropriate in the public interest or 
for the protection of investors or consumers. In the case of 
securities having no principal amount or no par value, the 
value for the purposes of this subsection shall be the 
fairmarket value as of the date of issue. The Commission by 
rules and regulations or order, subject to such terms and 
conditions as it deems appropriate in the public interest or 
for the protection of investors or consumers, shall exempt from 
the provisions of subsection (a) the issue or sale of any 
security by any subsidiary company of a registered holding 
company, if the issue and sale of such security are solely for 
the purpose of financing the business of such subsidiary 
company and have been expressly authorized by the State 
commission of the State in which such subsidiary company is 
organized and doing business, or if the issue and sale of such 
security are solely for the purpose of financing the business 
of such subsidiary company when such subsidiary company is not 
a holding company, a public-utility company, an investment 
company, or a fiscal or financing agency of a holding company, 
a public-utility company, or an investment company. The 
provisions of subsection (a) shall not apply to the issue, by a 
registered holding company or subsidiary company thereof, of a 
security issued pursuant to the terms of any security 
outstanding on January 1, 1935, giving the holder of such 
outstanding security the right to convert such outstanding 
security into another security of the same issuer or of another 
person, or giving the right to subscribe to another security of 
the same issuer or another issuer. Within ten days after any 
issue, sale, renewal, or guaranty exempted from the application 
of subsection (a) by or under authority of this subsection, 
such holding company or subsidiary company thereof shall file 
with the Commission a certificate of notification in such form 
and setting forth such of the information required in a 
declaration under section 7 as the Commission may by rules and 
regulations or order prescribe as necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(c) It shall be unlawful, by use of the mails or any means 
or instrumentality of interstate commerce, or otherwise, for 
any registered holding company or any subsidiary company 
thereof, directly or indirectly--
        [(1) to sell or offer for sale or to cause to be sold 
        or offered for sale, from house to house, any security 
        of such holding company; or
        [(2) to cause any officer or employee of any subsidiary 
        company of such holding company to sell or cause to be 
        sold any security of such holding company.
As used in this subsection the term ``house'' shall not include 
an office used for business purposes.

DECLARATIONS BY REGISTERED HOLDING AND SUBSIDIARY COMPANIES IN RESPECT 
                        OF SECURITY TRANSACTIONS

    [Sec. 7. (a) A registered holding company or subsidiary 
company thereof may file a declaration with the Commission, 
regarding any of the acts enumerated in subsection (a) of 
section 6, in such form as the Commission may be rules and 
regulations prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers. Such 
declaration shall include--
          [(1) such of the information and documents which are 
        required to be filed in order to register a security 
        under section 7 of the Securities Act of 1933, as 
        amended, as the Commission may by rules and regulations 
        or order prescribe as necessary or appropriate in the 
        public interest or for the protection of investors or 
        consumers; and
          [(2) such additional information, in such form and 
        detail, and such documents regarding the declarant or 
        any associate company thereof, the particular security 
        and compliance with such State laws as may apply to the 
        act in question as the Commission may by rules and 
        regulations or order prescribe as necessary or 
        appropriate in the public interest or for the proection 
        of investors or consumers.
    [(b) A declaration filed under this section shall become 
effective witTi'1n such reasonable period of time after the 
filing thereof as the Commission shall fix by rules and 
regulations or order, unless the Commission prior to the 
expiration of such period shall have issued an order to the 
declarant to show cause why such declaration should become 
effective. Within a reasonable time after an opportunity for 
hearing upon an order to show cause under this subsection, 
unless the declarant shall withdraw its declaration, the 
Commission shall enter an order either permitting such 
declaration to become effective as filed or amended, or 
refusing to permit such declaration to become effective. 
Amendments to a declaration may be made upon such terms and 
conditions as the Commission may prescribe.
    [(c) The Commission shall not permit a declaration 
regarding the issue or sale of a security to become effective 
unless it finds that--
          [(1) such security is (A) a common stock having a par 
        value and being without preference as to dividends or 
        distribution over, and having at least equal voting 
        rights with, any outstanding security of the declarant; 
        (B) a bond (i) secured by a first lien on physical 
        property of the declarant, or (ii) secured by an 
        obligation of a subsidiary company of the declarant 
        secured by a first lien on physical property of such 
        subsidiary company, or (iii) secured by any other 
        assets of the type and character which the Commission 
        by rules and regulations or order may prescribe as 
        appropriate in the public interest or for the 
        protection of investors; (C) a guaranty of, or 
        assumption of liability on, a security of another 
        company; or (D) a receiver's or trustee's certificate 
        duly authorized by the appropriate court or courts; or
          [(2) such security is to be issued or sold solely (A) 
        for the purpose of refunding, extending, exchanging, or 
        discharging an outstanding security of the declarant 
        and/or a predecessor company thereof or for the purpose 
        of effecting a merger, consolidation, or other 
        reorganization; (B) for the purpose of financing the 
        business of the declarant as a public-utility company; 
        (C) for the purpose of financing the business of the 
        declarant, when the declarant is neither a holding 
        company nor a public-utility company; and/or (D) for 
        necessary and urgent corporate purposes of the 
        declarant where the requirements of the provisions of 
        paragraph (1) would impose an unreasonable financial 
        burden upon the declarant and are not necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers; or
          [(3) such security is one the issuance of which was 
        authorized by the company prior to January 1, 1935, and 
        which the Commission by rules and regulations or order 
        authorizes as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers.
    [(d) If the requirements of subsections (c) and (g) are 
satisfied, the Commission shall permit a declaration regarding 
the issue or sale of a security to become effective unless the 
Commission finds that
          [(1) the security is not reasonably adapted to the 
        security structure of the declarant and other companies 
        in the same holding-company system;
          [(2) the security is not reasonably adapted to the 
        earning power of the declarant;
          [(3) financing by the issue and sale of the 
        particular security is not necessary or appropriate to 
        the economical and efficient operation of a business in 
        which the applicant lawfully is engaged or has an 
        interest;
          [(4) the fees, commissions, or other remuneration, to 
        whomsoever paid, directly or indirectly, in connection 
        with the issue, sale or distribution of the security 
        are not reasonable;
          [(5) in the case of a security that is a guaranty of, 
        or assumption of liability on, a security of another 
        company, the circumstances are such as to constitute 
        the making of such guaranty or the assumption of such 
        liability an improper risk for he declarant; or
          [(6) the terms and conditions of the issue or sale of 
        the security are detrimental to the public interest or 
        the interest of investors or consumers.
    [(e) If the requirements of subsection (g) are satisfied, 
the Commission shall permit a declaration to become effective 
regarding the exercise of a privilege or right to alter the 
priorities, preferences, voting power, or other rights of the 
holders of an outstanding security unless the Commission finds 
that such exercise of such privilege or right will result in an 
unfair or inequitable distribution of voting power among 
holders of the securities of the declarant or is otherwise 
detrimental to the public interest or the interest of investors 
or consumers.
    [(f) Any order permitting a declaration to become effective 
may contain such terms and conditions as the Commission finds 
necessary to assure compliance with the conditions specified in 
this section.
    [(g) If a State commission or State securities commission, 
having jurisdiction over any of the acts enumerated in 
subsection (a) of section 6, shall inform the Commission, upon 
request by the Commission for an opinion or otherwise, that 
State laws applicable to the act in question have not been 
complied with, the Commission shall not permit a declaration 
regarding the act in question to become effective until and 
unless the Commission is satisfied that such compliance has 
been effected.

 ACQUIRING INTEREST IN ELECTRIC AND GAS UTILITY COMPANIES SERVING SAME 
                               TERRITORY

    [Sec. 8. Whenever a State law prohibits, or requires 
approval or authorization of, the ownership or operation by a 
single company of the utility assets of an electric utility 
company and a gas utility company serving substantially the 
same territory, it shall be unlawful for a registered holding 
company, or any subsidiary company thereof, by use of the mails 
or any means or instruntality of interstate commerce, or 
otherwise--
          [(1) to take any step, without the express approval 
        of the State commission of such State, which results in 
        its having a direct or indirect interest in an electric 
        utility company and a gas utility company serving 
        substantially the same territory; or
          [(2) if it already has any such interest, to acquire, 
        without the express approval of the State commission, 
        any direct or indirect interest in an electric utility 
        company or gas utility company serving substantially 
        the same territory as that served by such companies in 
        which it already has an interest.

   (ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER INTERESTS

    (Sec. (a) Unless the acquisition has been approved by the 
Commission under section 10, it shall be unlawful--
          [(1) for any registered holding company or any 
        subsidiary company thereof, by use of the mails or any 
        means or instrumentality of interstate commerce, or 
        otherwise, to acquire, directly or indirectly, any 
        securities or utility assets or any other interest in 
        any business;
          [(2) for any person, by use of the mails or any means 
        or instrumentality of interstate commerce, to acquire, 
        directly or indirectly, any security of any public-
        utility company, if such person is an affiliate, under 
        clause (A) of paragraph (11) of subsection (a) of 
        section 2, of such company and of any other public 
        utility or holding company, or will by virtue of such 
        acquisition become such an affiliate.
    [(b) Subsection (a) shall not apply to--
          [(1) the acquisition by a public-utility company of 
        utility assets the acquisition of which has been 
        expressly authorized by a State commission; or
          [(2) the acquisition by a public-utility company of 
        securities of a subsidiary public-utility company 
        thereof, provided that both such public-utility 
        companies and all other public-utility companies in the 
        same holding-company system are organized in the same 
        State, that the business of each such company in such 
        system is substantially confined to such State, and 
        that the acquisition of such securities has been 
        expressly authorized by the State commission of such 
        State.
    [(c) Subsection (a) shall not apply to the acquisition by a 
registered holding company, or a subsidiary company thereof, 
of--
          [(1) securities of, or securities the principal or 
        interest of which is guaranteed by, the United States, 
        a State, or political subdivision of a State, or any 
        agency, authority, or instrumentality of any one or 
        more of the foregoing, or any corporation which is 
        wholly owned, directly or indirectly, by any one or 
        more of the foregoing;
          [(2) such other readily marketable securities, within 
        the limitation of such amounts, as the Commission may 
        by rules and regulations prescribe as appropriate for 
        investment of current funds and as not detrimental to 
        the public interest or the interest of investors or 
        consumers; or
          [(3) such commercial paper and other securities, 
        within such limitations, as the Commission may by rules 
        and regulations or order prescribe as appropriate in 
        the ordinary course of business of a registered holding 
        company or subsidiary company thereof and as not 
        detrimental to the public interest or the interest of 
        investors or consumers.

  APPROVAL OF ACQUISITION OF SECURITIES AND UTILITY ASSETS AND OTHER 
                               INTERESTS

          [Sec. 10. (a) A person may apply for approval of the 
        acquisition of securities or utility assets, or of any 
        other interest in any business, by filing an 
        application in such form as the Commission may by rules 
        and regulations prescribe as necessary or appropriate 
        in the public interest or for the protection of 
        investors and consumers. Such application shall 
        include--
          [(1) in the case of the acquisition of securities, 
        such information and copies of such documents as the 
        Commission may by rules and regulations or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers in respect of--
                  [(A) the security to be acquired, the 
                consideration to be paid therefor, and 
                compliance with such State laws as may apply in 
                respect of the issue, sale, or acquisition 
                thereof,
                  [(B) the outstanding securities of the 
                company whose security is to be acquired, the 
                terms, position, rights, and privileges of each 
                class and the options in respect of any such 
                securities,
                  [(C) the names of all security holders of 
                record (or otherwise known to the applicant) 
                owning, holding, or controlling 1 per centum or 
                more of any class of security of such company, 
                the officers and directors of such company, and 
                their remuneration, security holdings in, 
                material contracts with, and borrowings from 
                such company and the offices or directorships 
                held, and securities owned, held, or 
                controlled, by them in other companies,
                  [(D) the bonus, profit-sharing and voting-
                trust agreement, underwriting arrangements, 
                trust indentures, mortgages, and similar 
                documents, by whatever name known, of or 
                relating to such company,
                  [(E) the material contracts, not made in the 
                ordinary course of business, and the service, 
                sales, and construction contracts of such 
                company,
                  [(F) the securities owned, held, or 
                controlled, directly or indirectly, by such 
                company,
                  [(G) balance sheets and profit and loss 
                statements of such company for not more than 
                the five preceding fiscal years, certified, if 
                required by the rules and regulations of the 
                Commission by an independent public accountant,
                  [(H) any further information regarding such 
                company and any associate company or affiliate 
                thereof, or its relation with the applicant 
                company, and
                  [(I) if the applicant be not a registered 
                holding company,any of the information and 
                documents which may be required under section 5 
                from a registered holding company;
          [(2) in the case of the acquisition of utility 
        assets, such information concerning such assets, the 
        value thereof and consideration to be paid therefor, 
        the owner or owners thereof and their relation to, 
        agreements with, and interest in the securities of, the 
        applicant or any associate company thereof as the 
        Commission may by rules and regulations or order 
        prescribe as necessary or appropriate in the public 
        interest or for the protection of investors or 
        consumers; and
          [(3) in the case of the acquisition of any other 
        interest in an business, such information concerning 
        such business and the interest to be acquired, and the 
        consideration to be paid, as the Commission may by 
        rules and regulations or order prescribe as necessary 
        or appropriate in the public interest or for the 
        protection of investors or consumers.
    [(b) If the requirements of subsection (f) are satisfied, 
the Commission shall approve the acquisition unless the 
Commission finds that--
          [(1) such acquisition will tend towards interlocking 
        relations or the concentration of control of public-
        utility companies, of a kind or to an extent 
        detrimental to the public interest or the interest of 
        investors, or consumers;
          [(2) in case of the acquisition of securities or 
        utility assets, the consideration, including all fees, 
        commissions, and other remuneration, to whomsoever 
        paid, to be given, directly or indirectly, in 
        connection with such acquisition is not reasonable or 
        does not bear a fair relation to the sums invested in 
        or the earning capacity of the utility assets to be 
        acquired or the utility assets underlying the 
        securities to be acquired; or
          [(3) such acquisition will unduly complicate the 
        capital structure of the holding-company system of the 
        applicant or will be detrimental to the public interest 
        or the interest of investors or consumers or the proper 
        functioning of such holding-company system.
The Commission may condition its approval of the acquisition of 
securities of another company upon such a fair offer to 
purchase such of the other securities of the company whose 
security is to be acquired as the Commission may find necessary 
or appropriate in the public interest or for the protection of 
investors or consumers.
    [(c) Notwithstanding the provisions of subsection (b), the 
Commission shall not approve--
          [(1) an acquisition of securities or utility assets, 
        or of any other interest, which is unlawful under the 
        provisions of section 8 or is detrimental to the 
        carrying out of the provisions of section 11; or
          [(2) the acquisition of securities or utility assets 
        of a public utility or holding company unless the 
        Commission finds that such acquisition will serve the 
        public interest by tending towards the economical and 
        efficient development of an integrated public-utility 
        system. This paragraph shall not apply to the 
        acquisition of securities or utility assets of a 
        public-utility company operating exclusively outside 
        the United States.
    [(d) Within such reasonable time after the filing of an 
application under this section as the Commission shall fix by 
rules and regulations or order, the Commission shall enter an 
order either granting or, after notice and opportunity for 
hearing, denying approval of the acquisition unless the 
applicant shall withdraw its application. Amendments to an 
application may be made upon such terms and conditions as the 
Commission may prescribe.
    [(e) The Commission, in any order approving the acquisition 
of securities or utility assets, may prescribe such terms and 
conditions in respect of such acquisition, including the price 
to be paid for such securities or utility assets, as the 
Commission may find necessary or appropriate in the public 
interest or for the protection of investors or consumers.
    [((f) The Commission shall not approve any acquisition as 
to which an application is made under this section unless it 
appears to the satisfaction of the Commission that such State 
laws as may apply in respect of such acquisition have been 
complied with, except where the Commission finds that 
compliance with such State laws would be detrimental to the 
carrying out of the provisions of section 11.

               S[IMPLIFICATION OF HOLDING-COMPANY SYSTEMS

    [(Sec. 11. (a) It shall be the duty of the Commission to 
examine the corporate structure of every registered holding 
company and subsidiary company thereof, the relationships among 
the companies in the holding-company system of every such 
company and the character of the interests thereof and the 
properties owned or controlled thereby to determine the extent 
to which the corporate structure of such holding-company system 
and the companies therein may be simplified, unnecessary 
complexities therein eliminated, voting power fairly and 
equitably distributed among the holders of securities thereof, 
and the properties and business thereof confined to those 
necessary or appropriate to the operations of an integrated 
public-utility system.
    [(b) It shall be the duty of the Commission, as soon as 
practical after January 1, 1938:
          [(1) \1\ To require by order, after notice and 
        opportunity for hearing, that each registered holding 
        company, and each subsidiary company thereof, shall 
        take such action as the Commission shall find necessary 
        to limit the operations of the holding-company system 
        of which such company is a part to a single integrated 
        public-utility system, and to such other businesses as 
        are reasonably incidental, or economically necessary or 
        appropriate to the operations of such integrated 
        public-utility system: Provided, however, That the 
        Commission shall permit a registered holding company to 
        continue to control one or more additional integrated 
        public-utility systems, if, after notice and 
        opportunity for hearing, it finds that--
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    \1\ Public Law 99-186 (99 Stat. 1180), entitled ``An Act to clarify 
the application of the Public Utility Holding Company Act of 1935 to 
encourage cogeneration activities by gas utility holding company 
systems,'' as amended by Public Law 99-553 (100 Stat. 3087) and Public 
Law 102-486 (106 Stat. 2911), provides 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.
    ``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.''
    Public Law 101-572 (104 Stat. 2810), entitled ``Gas Related 
Activities Act of 1990'' provides as follows:
    SEC. 2. RULE OF CONSTRUCTION.

    (A) Treatment of Certain Acquisitions Involving Gas Companies or 
Gas Transportation or Storage.--The acquisition by a registered company 
or any interest in any natural gas company or of any interest in any 
company organized to participate in activities involving the 
transportation or storage of natural gas, shall be deemed, for the 
purposes of section 11(b)(1) of the Act, to be reasonably incidental or 
economically necessary or appropriate to the operation of such gas 
utility companies.
---------------------------------------------------------------------------
    (b) Treatment of Acquisitions Related to Supply of Natural Gas; 
Commission Determination of Customer Interest.--The acquisition by a 
registered company of any interest in any company organized to 
participate in activities (other than those of a natural gas company or 
involving the transportation or storage of natural gas) related to the 
supply of natural gas, including exploration, development, production, 
marketing, manufacture, or other similar activities related to the 
supply of natural or manufactured gas, shall be deemed, for purposes of 
section 11(b)(1) of the Act, to be reasonably incidental or 
economically necessary or appropriate to the operation of such gas 
utility companies, if--
    (1) the Commission determines, after notice and opportunity for 
hearing in which the company proposing the acquisition shall have the 
burden of proving, that such acquisition is in the interest of 
consumers of each gas utility company of such registered company or 
consumers of any other subsidiary of such registered company; and
    (2) The Commission determines that such acquisition will not be 
detrimental to the interest of consumers of any such gas utility 
company or other subsidiary or to the proper functioning of the 
registered holding company system.
    (c) Case-By-Case Decisions Required.--Each such determination under 
this section shall be made on a case-by-case basis, and not be based on 
any present criteria.
    (d) Savings Provision.--Nothing herein shall be construed to affect 
the applicability of any other provisions of the Act to the acquisition 
or retention of any such interest by any such company.
    (e) Defintions.--For purposes of this section--
    (1) the term ``registered company'' means a company registered 
under the Act solely by reason of direct or indirect ownership of 
voting securities of one or more gas utility companies, or any 
subsidiary company of such registered company;
    (2) the term ``natural gas company'' has the meaning given such 
term under the Natural Gas Act (15 U.S.C. 717(a) et seq.); and
    (3) the term ``the Act'' means the Public Utility Holding Company 
Act of 1935.
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                [(A) Each of such additional systems cannot be 
                operated as an independent system without the 
                loss of substantial economies which can be 
                secured by the retention of control by such 
                holding company of such system;
                [(B) All of such additional systems are located 
                in one State, or in adjoining States, or in a 
                contiguous foreign country; and
                [(C) The continued combination of such systems 
                under the control of such holding company is 
                not so large (considering the state of the art 
                and the area of region affected) as to impair 
                the advantages of localized management, 
                efficient operation, or the effectiveness of 
                regulation.
        The Commission may permit as reasonably incidental, or 
        economically necessary or appropriate to the operations 
        of one or more integrated public-utility systems the 
        retention of an interest in any business (other than 
        the business of a public-utility company as such) which 
        the Commission shall find necessary or appropriate in 
        the public interest or for the protection of investors 
        or consumers and not detrimental to the proper 
        functioning of such system or systems.
          [(2) To require by order, after notice and 
        opportunity for hearing, that each registered holding 
        company, and each subsidiary company thereof, shall 
        take such steps as the Commission shall find necessary 
        to ensure that the corporate structure or continued 
        existence of any company in the holding-company system 
        does not unduly or unnecessarily complicate the 
        structure, or unfairly or inequitably distribute voting 
        power among security holders, of such holding-company 
        system. In carrying out the provisions of this 
        paragraph the Commission shall require each registered 
        holding company (and any company in the same holding-
        company system with such holding company) to take such 
        action as the Commission shall find necessary in order 
        that such holding company shall cease to be a holding 
        company with respect to each of its subsidiary 
        companies which itself has a subsidiary company which 
        is a holding company. Except for the purpose of fairly 
        and equitably distributing voting power among the 
        security holders of such company, nothing in this 
        paragraph shall authorize the Commission to require any 
        change in the corporate structure or existence of any 
        company which is not a holding company, or of any 
        company whose principal business is that of a public-
        utility company.
The Commission may by order revoke or modify any order 
previously made under this subsection, if, after notice and 
opportunity for hearing, it finds that the conditions upon 
which the order was predicated do not exist. Any order made 
under this subsection shall be subject to judicial review as 
provided in section 24.
    [(c) Any order under subsection (b) shall be complied with 
within one year from the date of such order; but the Commission 
shall, upon a showing (made before or after the entry of such 
order) that the applicant has been or will be unable in the 
exercise of due diligence to comply with such order within such 
time, extend such time for an additional period not exceeding 
one year if it finds such extension necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(d) The Commission may apply to a court, in accordance 
with the provisions of subsection (f) of section 18, to enforce 
compliance with any order issued under subsection (b). In any 
such proceeding, the court as a court of equity may, to such 
extent as it deems necessary for purposes of enforcement of 
such order, take exclusive jurisdiction and possession of the 
company or companies and the assets thereof, wherever located; 
and the court shall have jurisdiction, in any such proceeding, 
to appoint a trustee, and the court may constitute and appoint 
the Commission as a sole trustee, to hold or administer under 
the direction of the court the assets so possessed. In any 
proceeding for the enforcement of an order of the Commission 
issued under subsection (b), the trustee with the approval of 
the court shall have power to dispose of any or all of such 
assets and, subject to such terms and conditions as the court 
may prescribe, may make such disposition in accordance with a 
fair and equitable reorganization plan which shall have been 
approved by the Commission after opportunity for hearing. Such 
reorganization plan may be proposed in the first instance by 
the Commission, or, subject to such rules and regulations as 
the Commission may deem necessary or appropriate in the public 
interest or for the protection of investors, by any person 
having a bona fide interest (as defined by the rules and 
regulations of the Commission) in the reorganization.
    [(e) In accordance with such rules and regulations or order 
as the Commission may deem necessary or appropriate in the 
public interest or for the protection of investors or 
consumers, any registered holding company or any subsidiary 
company of a registered holding company may, at any time after 
January 1, 1936, submit a plan to the Commission for the 
divestment of control, securities, or other assets, or for 
other action by such company or any subsidiary company thereof 
for the purpose of enabling such company or any subsidiary 
company thereof to comply with the provisions of subsection 
(b). If, after notice and opportunity for hearing, the 
Commission shall find such plan, as submitted or as modified, 
necessary to effectuate the provisions of subsection (b) and 
fair and equitable to the persons affected by such plan, the 
Commission shall make an order approving such plan; and the 
Commission, at the request of the company, may apply to a 
court, in accordance with the provisions of subsection (f) of 
section 18, to enforce and carry out the terms and provisions 
of such plan. If, upon any such application, the court, after 
notice and opportunity for hearing, shall approve such plan as 
fair and equitable and as appropriate to effectuate the 
provisions of section 11, the court as a court of equity may, 
to such extent as it deems necessary for the purpose of 
carrying out the terms and provisions of such plan, take 
exclusive jurisdiction and possession of the company or 
companies and the assets thereof, wherever located; and the 
court shall have jurisdiction to appoint a trustee, and the 
court may constitute and appoint the Commission as sole 
trustee, to hold or administer, under the direction of the 
court and in accordance with the plan theretofore approved, by 
the court and the Commission, the assets so possessed.
    [(f) In any proceeding in a court of the United States, 
whether under this section or otherwise, in which a receiver or 
trustee is appointed for any registered holding company, or any 
subsidiary company thereof, the court may constitute and 
appoint the Commission as sole trustee or receiver, subject to 
the directions and orders of the court, whether or not a 
trustee or receiver shall theretofore have been appointed, and 
in any such proceeding the court shall not appoint any person 
other than the Commission trustee or receiver without notifying 
the Commission and giving it an opportunity to be heard before 
making any such appointment. In no proceeding under this 
section or otherwise shall the Commission be appointed as 
trustee or receiver without its express consent. In any such 
proceeding a reorganization plan for a registered holding 
company or any subsidiary company thereof shall not become 
effective unless such plan shall have been approved by the 
Commission after opportunity for hearing prior to its 
submission to the court. Notwithstanding any other provision of 
law, any such reorganization plan may be proposed in the first 
instance by the Commission or, subject to such ru1es and 
regulations as the Commission may deem necessary or appropriate 
in the public interest or for the protection of investors, by 
any person having a bona fide interest (as defined by the rules 
and regulations of the Commission) in the reorganization. The 
Commission may, by such rules and regulations or order as it 
may deem necessary or appropriate in the public interest or for 
the protection of investors or consumers, require that any or 
all fees, expenses, and remuneration, to whomsoever paid, in 
connection with any reorganization, dissolution, liquidation, 
bankruptcy, or receivership of a registered holding company or 
subsidiary company thereof, in any such proceeding, shall be 
subject to approval by the Commission.
    [(g) It shall be unlawful for any person to solicit or 
permit the use of his or its name to solicit, by use of the 
mails or any means or instrumentality of interstate commerce, 
or otherwise, any proxy, consent, authorization, power of 
attorney, deposit, or dissent in respect of any reorganization 
plan of a registered holding company or any subsidiary company 
thereof under this section, or otherwise, or in respect of any 
plan under this section for the divestment of control, 
securities, or other assets, or for the dissolution of any 
registered holding company or any subsidiary company thereof, 
unless--
         [(1) the plan has been proposed by the Commission, or 
        the plan and such information regarding' it and its 
        sponsors as the Commission may deem necessary or 
        appropriate in the public interest or for the 
        protection of investors or consumers has been submitted 
        to the Commission by a person having a bona fide 
        interest (as defined by the rules and regulations of 
        the Commission) in such reorganization;
         [(2) each such solicitation is accompanied or preceded 
        by a copy of a report on the plan which shall be made 
        by the Commission after an opportunity for a hearing on 
        the plan and other plans submitted to it, or by an 
        abstract of such report made or approved by the 
        Commission; and
         [(3) each such solicitation is made not in 
        contravention of such rules and regulations or orders 
        as the Commission may deem necessary or appropriate in 
        the public interest or for the protection of investors 
        or consumers.
Nothing in this subsection or the rules and regulations 
thereunder shall prevent any person from appearing before the 
Commission or any court through an attorney or proxy.

 INTERCOMPANY LOANS; DIVIDENDS; SECURITY TRANSACTIONS; SALE OF UTILITY 
                  ASSETS; PROXIES; OTHER TRANSACTIONS

    [Sec. 12. (a) It shall be unlawful for any registered 
holding company, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, directly 
or indirectly, to borrow, or to receive any extension of credit 
or indemnity, from any public-utility company in the same 
holding-company system or from any subsidiary company of such 
holding company, but it shall not be unlawful under this 
subsection to renew, or extend the time of, any loan, credit, 
or indemnity outstanding on the date of the enactment of this 
title.
    [(b) It shall be unlawful for any registered holding 
company or subsidiary company thereof, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, directly or indirectly, to lend or in any manner 
extend its credit to or indemnify any company in the same 
holding-company system in contravention of such rules and 
regulations or orders as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers or to prevent the circumvention of the 
provisions of this title or the rules, regulations, or orders 
thereunder).
    [(c) It shall be unlawful for any registered holding 
company or any subsidiary company thereof, by use of the mails 
or any means or instrumentality of interstate commerce, or 
otherwise, to declare or pay any dividend on any security of 
such company or to acquire, retire, or redeem any security of 
such company, in contravention of such rules and regulations or 
orders as the Commission deems necessary or appropriate to 
protect the financial integrity of companies in holding-company 
systems, to safeguard the working capital of public-utility 
companies, to prevent the payment of dividends out of capital 
or unearned surplus, or to prevent the circumvention of the 
provisions of this title or the rules, regulations, or orders 
thereunder.
    [(d) It shall be unlawful for any registered holding 
company, by use of the mails or any means or instrumentality of 
interstate commerce, or otherwise, to sell any security which 
it owns of any public-utility company, or any utility assets, 
in contravention of such rules and regulations or orders 
regarding the consideration to be received for such sale, 
maintenance of competitive conditions, fees and commissions, 
accounts, disclosure of interest, and similar matters as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or to 
prevent the circumvention of the provisions of this title or 
the rules, regulations, or orders thereunder.
    [(e) It shall be unlawful for any person to solicit or to 
permit the use of his or its name to solicit, by use of the 
mails or any means or instrumentality of interstate commerce, 
or otherwise, any proxy, power of attorney, consent, or 
authorization regarding any security of a registered holding 
company or a subsidiary company thereof in contravention of 
such rules and regulations or orders as the Commission deems 
necessary or appropriate in the public interest or for the 
protection of investors or consumers or to prevent the 
circumvention of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(f) It shall be unlawful for any registered holding 
company or subsidiary company thereof, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, to negotiate, enter into, or take any step in the 
performance of any transaction not otherwise unlawful under 
this title, with any company in the same holding-company system 
or with any affiliate of a company in such holding-company 
system in contravention of such rules and regulations or orders 
regarding reports, accounts, costs, maintenance of competitive 
conditions, a disclosure of interest, duration of contracts, 
and similar matters as the Commission deems necessary or 
appropriate in the public interest or for the protection of 
investors or consumers or to prevent the circumvention of the 
provisions of this title or the rules and regulations 
thereunder.
    [(g) It shall be unlawful for any affiliate of any public-
utility company, by use of the mails or any means or 
instrumentality of interstate commerce, or for any affiliate of 
any public-utility company engaged in interstate commerce, or 
of any registered holding company or any subsidiary company 
thereof, by use of the mails or any means or instrumentality of 
interstate commerce, or otherwise, to negotiate, enter into, or 
take any step in the performance of any transaction not 
otherwise unlawful under this title, with any such company of 
which it is an affiliate, in contravention of such rules and 
regulations or orders regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contracts, and similar matters as the Commission 
deems necessary or appropriate to prevent the circumvention of 
the provisions of this title.
    [(h) It shall be unlawful for any registered holding 
company, or any subsidiary company thereof, by use of the mails 
or any means or instrumentality of interstate commerce, or 
otherwise, directly or indirectly--
          [(1) to make any contribution whatsoever in 
        connection with the candidacy, nomination, election or 
        appointment of any person for or to any office or 
        position in the Government of the United States, a 
        State, or any political subdivision of a State, or any 
        agency, authority, or instrumentality of any one or 
        more of the foregoing; or
          [(2) to make any contribution to or in support of any 
        political party or any committee or agency thereof.
The term ``contribution'' as used in this subsection includes 
any gift, subscription, loan, advance, or deposit of money or 
anything of value, and includes any contract, agreement, or 
promise, whether or not legally enforceable, to make a 
contribution.
    [(i) It shall be unlawful for any person employed or 
retained by any registered holding company, or any subsidiary 
company thereof, to present, advocate, or oppose any matter 
affecting any registered holding company or any subsidiary 
company thereof, before the Congress or any Member or committee 
thereof, or before the Commission or Federal Power Commission, 
or any member, officer, or employee of either such Commission, 
unless such person shall file with the Commission in such form 
and detail and at such time as the Commission shall by rules 
and regulations or order prescribe as necessary or appropriate 
in the public interest or for the protection of investors or 
consumers, a statement of the subject matter in respect of 
which such person is retained or employed, the nature and 
character of such retainer or employment, and the amount of 
compensation received or to be received by such person, 
directly or indirectly, in connection therewith. It shall be 
the duty of every such person so employed or retained to file 
with the Commission within ten days after the close of each 
calendar month during such retainer or employment, in such form 
and detail as the Commission shall by rules and regulations or 
order prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers, a 
statement of the expenses incurred and the compensation 
received by such person during such month in connection with 
such retainer or employment.

              [SERVICE, SALES, AND CONSTRUCTION CONTRACTS

    [Sec. 13. (a) After April 1, 1936, it shall be unlawful for 
any registered holding company, by use of the mails or any 
means or instrumentality of interstate commerce, or otherwise, 
to enter into or take any step in the performance of any 
service, sales, or construction contract by which such company 
undertakes to perform services or construction work for, or 
sell goods to, any associate company thereof which is a public-
utility or mutual service company. This provision shall not 
apply to such transactions, involving special or unusual 
circumstances or not in the ordinary course of business, as the 
Commission by rules and regulations or order may conditionally 
or unconditionally exempt as being necessary or appropriate in 
the public interest or for the protection of investors or 
consumers.
    [(b) After April 1, 1936, it shall be unlawful for any 
subsidiary company of any registered holding company or for any 
mutual service company, by use of the mails or any means or 
instrumentality of interstate commerce, or otherwise, to enter 
into or take any step in the performance of any service, sales, 
or construction contract by which such company undertakes to 
perform services or construction work for, or sell goods to, 
any associate company thereof except in accordance with such 
terms and conditions and subject to such limitations and 
prohibitions as the Commission by rules and regulations or 
order shall prescribe as necessary or appropriate in the public 
interest or for the protection of investors or consumers and to 
insure that such contracts are performed economically and 
efficiently for the benefit of such associate companies at 
cost, fairly and equitably allocated among such companies. This 
provision shall not apply to such transactions as the 
Commission by rules and regulations or order may conditionally 
or unconditionally exempt as being necessary or appropriate in 
the public interest or for the protection of investors or 
consumers, if such transactions (1) are with any associate 
company which does not derive, directly or indirectly, any 
material part of its income from sources within the United 
States and which is not a public-utility company operating 
within the United States, or (2) involve special or unusual 
circumstances or are not in the ordinary course of business.
    [(c) The rules and regulations and orders of the Commission 
under this section may prescribe, among other things, such 
terms and conditions regarding the determination of costs and 
the allocation thereof among specified classes of companies and 
for specified classes of service, sales, and construction 
contracts, the duration of such contracts, the making and 
keeping of accounts and cost-accounting procedures, the filing 
of annual and other periodic and special reports, the 
maintenance of competitive conditions, the disclosure of 
interests, and similar matters, as the Commission deems 
necessary or appropriate in the public interest or for the 
protection of investors or consumers.
    [(d) The rules and regulations and orders of the Commission 
under this section shall prescribe, among other things, such 
terms and conditions regarding the manner in which application 
may be made for approval as a mutual service company and the 
granting and continuance of such approval, the nature and 
enforcement of agreements for the sharing of expenses and 
distributing of revenues among member companies, and matters 
relating to such agreements, the nature and types of businesses 
and transactions in which mutual service companies may engage, 
and the manner of engaging therein, and the relations and 
transactions with member companies and affiliates, as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers. The 
Commission shall not approve, or continue the approval of, any 
company as a mutual service company unless the Commission finds 
such company is so organized as to ownership, costs, revenues, 
and the sharing thereof as reasonably to insure the efficient 
and economical performance of service, sales, or construction 
contracts by such company for member companies, at cost fairly 
and equitably allocated among such member companies, at a 
reasonable saving to member companies over the cost to such 
companies of comparable contracts performed by independent 
persons. The Commission, upon its own motion or at the request 
of a member company or a State commission, may, after notice 
and opportunity for hearing, by order require a reallocation or 
reapportionment of costs among member companies of a mutual 
service company if it finds the existing allocation inequitable 
and may require the elimination of a service or services to a 
member company which does not bear its fair proportion of costs 
or which, by reason of its size or other circumstances, does 
not require such service or services. The Commission, after 
notice and opportunity for hearing, by order shall revoke, 
suspend, or modify the approval given any mutual service 
company if it finds that such company has persistently violated 
any provision of this section or any rule, regulation, or order 
thereunder.
    [(e) It shall be unlawful for any affiliate of any public-
utility company engaged in interstate commerce, or of any 
registered holding company or subsidiary company thereof, by 
use of the mails or any means or instrumentality of interstate 
commerce, or otherwise, to enter into or take any step in the 
performance of any service, sales, or construction contract, by 
which such affiliate undertakes to perform services or 
construction work for, or sell goods to, any such company of 
which it is an affiliate, in contravention of such rules and 
regulations or orders regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contracts, and similar matters, as the Commission 
deems necessary or appropriate to prevent the circumvention of 
the provisions of this title or the rules, regulations, or 
orders thereunder.
    [(f) It shall be unlawful for any person whose principal 
business is the performance of service, sales, or construction 
contracts for public-utility or holding companies, by use of 
the mails or any means or instrumentality of interstate 
commerce, to enter into or take any step in the performance of 
any service, sales, or construction contract with any public-
utility company, or for any such person, by use of the mails or 
any means or instrumentality of interstate commerce, or 
otherwise, to enter into or take any step in the performance of 
any service, sales, or construction contract with any public-
utility company engaged in interstate commerce, or with any 
registered holding company or any subsidiary company of a 
registered holding company, in contravention of such rules and 
regulations or order regarding reports, accounts, costs, 
maintenance of competitive conditions, disclosure of interest, 
duration of contract, and similar matters as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers or to prevent the 
circumvention of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(g) The Commission, in order to obtain information to 
serve as a basis for recommending further legislation, shall 
from time to time conduct investigations regarding the making, 
performance, and costs of service, sales, and construction 
contracts with holding companies and subsidiary companies 
thereof and with public-utility companies, the economies 
resulting therefrom, and the desirability thereof. The 
Commission shall report to Congress, from time to time, the 
results of such investigations, together with such 
recommendations for legislation as it deems advisable. On the 
basis of such investigations the Commission shall classify the 
different types of such contracts and the work done thereunder, 
and shall make recommendations from time to time regarding the 
standards and scope of such contracts in relation to public-
utility companies of different kinds and sizes and the costs 
incurred thereunder and economies resulting therefrom. Such 
recommendations shall be made available to State commissions, 
public-utility companies, and to the public in such form and at 
such reasonable charge as the Commission may prescribe.

                      [PERIODIC AND OTHER REPORTS

    [Sec. 14. Every registered holding company and every mutual 
service company shall file with the Commission such annual, 
quarterly, and other periodic and special reports, the answers 
to such specific questions and the minutes of such directors', 
stockholders', and other meetings, as the Commission may by 
rules and regulations or order prescribe as necessary or 
appropriate in the public interest or for the protection of 
investors or consumers. Such reports, if required by the rules 
and regulations of the Commission, shall be certified by an 
independent public accountant, and shall be made and filed at 
such time and in such form and detail as the Commission shall 
prescribe. The Commission may require that there be included in 
reports filed with it such information and documents as it 
finds necessary or appropriate to keep reasonably current the 
information filed under section 5 or 13, and such further 
information concerning the financial condition, security 
structure, security holdings, assets, and cost thereof, 
wherever determinable, and affiliation of the reporting company 
and the associate companies, member companies, and affiliates 
thereof as the Commission deems necessary or appropriate in the 
public interest or for the protection of investors or 
consumers.

                         [ACCOUNTS AND RECORDS

    [Sec. 15. (a) Every registered holding company and every 
subsidiary company thereof shall make, keep, and preserve for 
such periods, such accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records as 
the Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or for 
the enforcement of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(b) Every affiliate of a registered holding company or of 
any subsidiary company thereof, or of any public-utility 
company engaged in interstate commerce or not so engaged, shall 
make, keep, and preserve for such periods, such accounts, cost-
accounting procedures, correspondence, memoranda, papers, 
books, and other records relating to any transaction of such 
affiliate which is subject to any provision of this title or 
any rule, regulation, or order thereunder, as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers or for the enforcement 
of the provisions of this title or the rules, regulations, or 
orders thereunder.
    [(c) Every mutual service company, and ever affiliate of a 
mutual service company as to any transaction of such affiliate 
which is subject to any provision of this title or any rule, 
regulation, or order thereunder, shall make, keep, and preserve 
for such periods, such accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records, as 
the Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or for 
the enforcement of the provisions of this title or the rules, 
regulations, or orders thereunder.
    [(d) Every person whose principal business is the 
performance of service, sales, or construction contracts for 
public-utility or holding companies shall make, keep, and 
preserve for such periods, such accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records, relating to any transaction by such person which is 
subject to any person which is subject to any provision of this 
title or any rule, regulation, or order thereunder, as the 
Commission deems necessary or appropriate in the public 
interest or for the protection of investors or consumers or for 
the enforcement of the provisions of this title or the rules 
and regulations thereunder.
    [(e) After the Commission has prescribed the form and 
manner of making and keeping accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records to be kept by any person hereunder, it shall be 
unlawful for any such person to keep any accounts, cost-
accounting procedures, correspondence, memoranda, papers, 
books, or other records other than those prescribed or such as 
may be approved by the Commission, or to keep his or its 
accounts, cost-accounting procedures, correspondence, 
memoranda, papers, books, or other records in any manner other 
than that prescribed or approved by the Commission.
    [(f) All accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records 
kept or required to be kept by persons subject to any provision 
of this section shall be subject at any time and from time to 
time to such reasonable periodic, special, and other 
examinations by the Commission, or any member or representative 
thereof, as the Commission may prescribe. The Commission, after 
notice and opportunity for hearing, may prescribe the account 
or accounts in which particular outlays, receipts, and other 
transactions shall be entered, charged ,or credited and the 
manner in which such entry, charge, or credit shall be made, 
and may require an entry to be modified or supplemented so as 
properly to show the cost of any asset or any other cost.
    [(g) It shall be the duty of every registered holding 
company and of every subsidiary company thereof and of every 
affiliate of a company insofar as such affiliate is subject to 
any provision of this title or any rule, regulation, or order 
thereunder, to submit the accounts, cost-accounting procedures, 
correspondence, memoranda, papers, books, and other records of 
such holding company, subsidiary company, or affiliate, as the 
case may be, to such examinations, in person or by duly 
appointed attorney, by the holder of any security of such 
holding company, subsidiary company, or affiliate, as the case 
may be, as the Commission deems necessary or appropriate in the 
public interest or for the protection of investors or 
consumers.
    [(h) It shall be the duty of every mutual service company, 
and of affiliate of a mutual service company, and of every 
person whose principal business is the performance of service, 
sales, or construction contracts for public-utility or holding 
companies, insofar as such affiliate or such person is subject 
to any provision of this title or any rule, regulation, or 
order thereunder, to submit the accounts, cost-accounting 
procedures, correspondence, memoranda, papers, books, and other 
records of such mutual service company, affiliate, or person to 
such examinations, in person or by duly appointed attorney, by 
member companies of such mutual service company and by public-
utility or holding companies for which such person performs 
service, sales, or construction contracts as the Commission 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers.
    [(i) The Commission, by such rules and regulations as it 
deems necessary or appropriate in the public interest or for 
the protection of investors or consumers may prescribe for 
persons subject to the provisions of subsection (a), (b), (c), 
or (d) of this section uniform methods for keeping accounts 
required under any provision of this section, including, among 
other things, the manner in which the cost of all assets, 
whenever determinable, shall be shown, the methods of 
classifying and segregating accounts, and the manner in which 
cost-accounting procedures shall be maintained.

                  [LIABILITY FOR MISLEADING STATEMENTS

    [Sec. 16. (a) Any person who shall make or cause to be made 
any statement in any application, report, registration 
statement, or document filed pursuant to any provision of this 
title, or any rule, regulation, or order thereunder, which 
statement was at the time and in the light of the circumstances 
under which it was made false or misleading with respect to any 
material fact shall be liable in the same manner, to the same 
extent, and subject to the same limitations as provided in 
section 18 of the Securities Exchange Act of 1934 with respect 
to an application, report, or document filed pursuant to the 
Securities Exchange Act of 1934.
    [(b) The rights and remedies provided by this title, except 
as provided in section 17(b), shall be in addition to any and 
all other rights and remedies that may exist under the 
Securities Act of 1933, as amended, or the Securities Exchange 
Act of 1934, or otherwise at law or in equity; but no person 
permitted to maintain a suit for damages under the provisions 
of this title shall recover, through satisfaction of judgment 
in one or more actions, a total amount in excess of his actual 
damages on account of the act complained of.

               [OFFICERS, DIRECTORS, AND OTHER AFFILIATES

    [Sec. 17. (a) Every person who is an officer or director of 
a registered holding company shall file with the Commission in 
such form as the Commission shall prescribe (1) at the time of 
the registration of such holding company, or within ten days 
after such person becomes an officer or director, a statement 
of the securities of such registered holding company or any 
subsidiary company thereof of which he is, directly or 
indirectly, the beneficial owner, and (2) within ten days after 
the close of each calendar month thereafter, if there has been 
any change in such ownership during such month, a statement of 
such ownership as of the close of such calendar month and of 
the changes in such ownership that have occurred during such 
calendar month.
    [(b) For the purpose of preventing the unfair use of 
information which may have been obtained by any such officer or 
director by reason of his relationship to such registered 
holding company or any subsidiary company thereof, any profit 
realized by any such officer or director from any purchase and 
sale, or any sale and purchase, of any security of such 
registered holding company or any subsidiary company thereof 
within any period of less than six months, unless such security 
was acquired in good faith in connection with a debt previously 
contracted, shall inure to and be recoverable by the holding 
company or subsidiary company in respect of the security of 
which such profit was realized, irrespective of any intention 
on the part of such officer or director in entering into such 
transaction to hold the security purchased or not to repurchase 
the security sold for a period of more than six months. Suit to 
recover such profit may be instituted at law or in equity in 
any court of competent jurisdiction by the company entitled 
thereto or by the owner of any security of such company in the 
name and in the behalf of such company if such company shall 
fail or refuse to bring such suit within sixty days after 
request or shall fail diligently to prosecute the same 
thereafter; but no such suit shall be brought more than two 
years after the date such profit was realized. This subsection 
shall not cover any transaction where such person was not an 
officer or director at the times of the purchase and sale, or 
the sale and purchase, of the security involved, or any 
transaction or transactions which the Commission by rules and 
regulations may, as necessary or appropriate in the public 
interest or for the protection of investors or consumers, 
exempt as not comprehended within the purpose of this 
subsection. Nothing in this subsection shall be construed to 
give a remedy in the case of any transaction in respect of 
which a remedy is given under subsection (b) of section 16 of 
the Securities Exchange Act of 1934.
    [(c) After one year from the date of the enactment of this 
title, no registered holding company or any subsidiary company 
thereof shall have, as an officer or director thereof, any 
executive officer, director, partner, appointee, or 
representative of any bank, trust company, investment banker, 
or banking association or firm, or any executive officer, 
director, partner, appointee, or representative of any 
corporation a majority of whose stock, having the unrestricted 
right to vote for the election of directors, is owned by any 
bank, trust company, investment banker, or banking association 
or firm, except in such cases as rules and regulations 
prescribed by the Commission may permit as not adversely 
affecting the public interest or the interest of investors or 
consumers.

[INVESTIGATIONS; INJUNCTIONS, ENFORCEMENT OF TITLE, AND PROSECUTION OF 
                                OFFENSES

    [Sec. 18. (a) The Commission, in its discretion, may 
investigate any facts, conditions, practices, or matters which 
it may deem necessary or appropriate to determine whether any 
person has violated or is about to violate any provision of 
this title or any rule or regulation thereunder, or to aid in 
the enforcement of the provisions of this title, in the 
prescribing of rules and regulations thereunder, or in 
obtaining information to serve as a basis for recommending 
further legislation concerning the matters to which this title 
relates. The Commission may require or permit any person to 
file with it a statement in writing, under oath or otherwise as 
it shall determine, as to any or all facts and circumstances 
concerning a matter which may be the subject of investigation. 
The Commission, in its discretion, may publish, or make 
available to State commissions, information concerning any such 
subject.
    [(b) The Commission upon its own motion or at the request 
of a State commission may investigate, or obtain any 
information regarding the business, financial condition, or 
practices of any registered holding company or subsidiary 
company thereof or facts, conditions, practices, or matters 
affecting the relations between any such company and any other 
company or companies in the same holding-company system.
    [(c) For the purpose of any investigation or any other 
proceeding under this title, any member of the Commission, or 
any officer thereof designated by it, is empowered to 
administer oaths and affirmations, subpoena witnesses, compel 
their attendance, take evidence, and require the production of 
any books, papers, correspondence, memoranda, contracts, 
agreements, or other records which the Commission deems 
relevant or material to the inquiry. Such attendance of 
witnesses and the production of any such records may be 
required from any place in any State or in any Territory or 
other place subject to the jurisdiction of the United States at 
any designated place of hearing.
    [(d) In case of contumacy by, or refusal to obey a subpoena 
issued to, any person, the Commission may invoke the aid of any 
court of the United States within the jurisdiction of which 
such investigation or proceeding is carried on, or where such 
person resides or carries on business, in requiring the 
attendance and testimony of witnesses and the production of 
books, papers, correspondence, memoranda, contracts, 
agreements, and other records. And such court may issue an 
order requiring such person to appear before the Commission or 
member or officer designated by the Commission, there to 
produce records, if so ordered, or to give testimony touching 
the matter under investigation or in question; and any failure 
to obey such order of the court may be punished by such court 
as a contempt thereof. All process in any such case may be 
served in the judicial district whereof such person is an 
inhabitant or wherever he may be found. Any person who, without 
just cause, shall fail or refuse to attend and testify or to 
answer any lawful inquiry or to produce books, papers, 
correspondence, memoranda, contracts, agreements, or other 
records, if in his or its power so to do, in obedience to the 
subpoena of the Commission, shall be guilty of a misdemeanor 
and, upon conviction, shall be subject to a fine of not more 
than $1,000 or to imprisonment for a term of not more than one 
year, or both.
    [(e) Whenever it shall appear to the Commission that any 
person is engaged or about to engage in any acts or practices 
which constitute or will constitute a violation of the 
provisions of this title, or of any rule, regulation, or order 
thereunder, it may in its discretion bring an action in the 
proper district court of the United States or the United States 
courts of any Territory or other place subject to the 
jurisdiction of the United States, to enjoin such acts or 
practices and to enforce compliance with this title or any 
rule, regulation, or order thereunder, and upon a proper 
showing a permanent or temporary injunction or degree or 
restraining order shall be granted without bond. The Commission 
may transmit such evidence as may be available concerning such 
acts or practices to the Attorney General, who, in his 
discretion, may institute the appropriate criminal proceedings 
under this title.
    [(f) Upon application of the Commission, the district 
courts of the United States, and the United States courts of 
any Territory or other place subject to the jurisdiction of the 
United States shall have jurisdiction to issue writs of 
mandamus commanding any person to comply with the provisions of 
this title or any rule, regulation, or order of the Commission 
thereunder.

                        [HEARINGS BY COMMISSION

    [Sec. 19. Hearings may be public and may be held before the 
Commission, any member or members thereof, or any officer or 
officers of the Commission designated by it, and appropriate 
records thereof shall be kept. In any proceeding before the 
Commission, the Commission, in accordance with such rules and 
regulations as it may prescribe, shall admit as a party any 
interested State, State commission, State securities 
commission, municipality, or other political subdivision of a 
State, and may admit as a party any representative of 
interested consumers or security holders, or any other person 
whose participation in the proceedings may be in the public 
interest or for the protection of investors or consumers.

                    [RULES, REGULATIONS, AND ORDERS

    [Sec. 20. (a) The Commission shall have authority from time 
to time to make, issue, amend, and rescind such rules and 
regulations and such orders as it may deem necessary or 
appropriate to carry out the provisions of this title, 
including rules and regulations defining accounting, technical, 
and trade terms used in this title. Among other things, the 
Commission shall have authority, for the purpose of this title, 
to prescribe the form or forms in which information required in 
any statement, declaration, application, report, or other 
document filed with the Commission shall be set forth, the 
items or details to be shown in balance sheets, profit and loss 
statements, and surplus accounts, the manner in which the cost 
of all assets, whenever determinable, shall be shown in regard 
to such statements, declarations, applications, reports, and 
other documents filed with the Commission, or accounts required 
to be kept by the rules, regulations, or orders of the 
Commission, and the methods to be followed in the keeping of 
accounts and cost-accounting procedures and the preparation of 
reports, in the segregation and allocation of costs, in the 
determination of liabilities, in the determination of 
depreciation and depletion, in the differentiation of recurring 
and nonrecurring income, in the differentiation of investment 
and operating income, and in the keeping or preparation, where 
the Commission deems it necessary or appropriate, of separate 
or consolidated balance sheets or profit and loss statements 
for any companies in the same holding-company system.
    [(b) In the case of the accounts of any company whose 
methods of accounting are prescribed under the provisions of 
any law of the United States or of any State, the rules and 
regulations or orders of the Commission in respect of accounts 
shall not be inconsistent with the requirements imposed by such 
law or any rule or regulation thereunder; nor shall anything in 
this title relieve any public-utility company from the duty to 
keep the accounts, books, records, or memoranda which may be 
required to be kept by the law of any State in which it 
operates or by the State commission of any such State. But this 
provision shall not prevent the Commission from imposing such 
additional requirements regarding reports or accounts as it may 
deem necessary or appropriate in the public interest or for the 
protection of investors or consumers.
    [(c) The rules and regulations of the Commission shall be 
effective upon publication in the manner which the Commission 
shall prescribe. For the purpose of its rules, regulations, or 
orders the Commission may classify persons and matters within 
its jurisdiction and prescribe different requirements for 
different classes of persons or matters. Orders of the 
Commission under this title shall be issued only after 
opportunity for hearing.
    [(d) The Commission, by such rules and regulations or order 
as it deems necessary or appropriate in the public interest or 
for the protection of investors or consumers, may authorize the 
filing of any information or documents required to be filed 
with the Commission under this title, or under the Securities 
Act of 1933, as amended, or under the Securities Exchange Act 
of 1934, by incorporating by reference any information or 
documents theretofore or concurrently filed with the Commission 
under this title or either of such Acts. No provision of this 
title imposing any liability shall apply to any act done or 
omitted in good faith in conformity with any rule, regulation, 
or order of the Commission, notwithstanding that such rule, 
regulation, or order may, after such act or omission, be 
amended or rescinded or be determined by judicial or other 
authority to be invalid for any reason.

                        [EFFECT ON EXISTING LAW

    [Sec. 21. Nothing in this title shall affect (1) the 
jurisdiction of the Commission under the Securities Act of 
1933, as amended, or the Securities Exchange Act of 1934 over 
any person, security, or contract, or (2) the rights, 
obligations, duties, or liabilities of any person under such 
Acts; nor shall anything in this title affect the jurisdiction 
of any other commission, board, agency, or officer of the 
United States or of any State or political subdivision of any 
State, over any person, security, or contract, insofar as such 
jurisdiction does not conflict with any provision of this title 
or any rule, regulation, or order thereunder.

                 [INFORMATION FILED WITH THE COMMISSION

    [Sec. 22. (a) When in the judgment of the Commission the 
disclosure of such information would be in the public interest 
or the interest of investors or consumers, the information 
contained in any statement, application, declaration, report, 
or other document filed with the Commission shall be available 
to the public, and copies thereof may be furnished to any 
person at such reasonable charge and under such reasonable 
limitations as the Commission may prescribe: Provided, however, 
That nothing in this title shall be construed to require, or to 
authorize the Commission to require, the revealing of trade 
secrets or processes in any application, declaration, report, 
or document filed with the Commission under this title.
    [(b) Any person filing such application, declaration, 
report, or document may make written objection to the public 
disclosure of information contained therein, stating the 
grounds for such objection, and the Commission is authorized to 
hear objections in any such case where it finds it advisable.
    [(c) It shall be unlawful for any member, officer, or 
employee of the Commission to disclose to any person other than 
a member, officer, or employee of the Commission, or to use for 
personal benefit, any information contained in any application, 
declaration, report, or document filed with the Commission 
which is not made available to the public pursuant to this 
section.

                      ANNUAL REPORTS OF COMMISSION

    [Sec. 23. The Commission shall submit annually a report to 
the Congress covering the work of the Commission for the 
preceding year and including such information, data, and 
recommendations for further legislation in connection with the 
matters covered by this title as it may find advisable.

                         COURT REVIEW OF ORDERS

    [Sec. 24. (a) Any person or party aggrieved by an order 
issued by the Commission under this title may obtain a review 
of such order in the court of appeals of the United States 
within any circuit wherein such person resides or has his 
principal place of business, or in the United States Court of 
Appeals for the District of Columbia, by filing in such court, 
within sixty days after the entry of such order, a written 
petition praying that the order of the Commission be modified 
or set aside in whole or in part. A copy of such petition shall 
be forthwith transmitted by the clerk of the court to any 
member of the Commission, or any officer thereof designated by 
the Commission for that purpose, and thereupon the Commission 
shall file in the court the record upon which the order 
complained of was entered, as provided in section 2112 of title 
28, United States Code. Upon the filing of such petition such 
court shall have jurisdiction, which upon the filing of the 
record shall be exclusive, to affirm, modify, or set aside such 
order, in whole or in part. No objection to the order of the 
Commission shall be considered by the court unless such 
objection shall have been urged before the Commission or unless 
there were reasonable grounds for failure so to do. The 
findings of the Commissions as to the facts, if supported by 
substantial evidence, shall be conclusive. If application is 
made to the court for leave to adduce additional evidence, and 
it is shown to the satisfaction of the court that such 
additional evidence is material and that there were reasonable 
grounds for failure to adduce such evidence in the proceeding 
before the Commission, the court may order such additional 
evidence to be taken before the Commission and to be adduced 
upon the hearing in such manner and upon such terms and 
conditions as to the court may seem proper. The Commission may 
modify its findings as to the facts by reason of the additional 
evidence so taken, and it shall file with the court such 
modified or new findings, which, if supported by substantial 
evidence, shall be conclusive, and its recommendation, if any, 
for the modification or setting aside of the original order. 
The judgment and decree of the court affirming, modifying, or 
setting aside, in whole or in part, any such order of the 
Commission shall be final, subject to review by the Supreme 
Court of the United States upon certiorari or certification as 
provided in section 1254 of title 28, United States Code.
    [(b) The commencement of proceedings under subsection (a) 
shall not, unless specifically ordered by the court, operate as 
a stay of the Commission's order.

                  [JURISDICTION OF OFFENSES AND SUITS

    [Sec. 25. The District Courts of the United States and the 
United States courts of any Territory or other place subject to 
the jurisdiction of the United States shall have jurisdiction 
of violations of this title or the rules, regulations, or 
orders thereunder, and, concurrently with State and Territorial 
courts, of all suits in equity and actions at law brought to 
enforce any liability or duty created by, or to enjoin any 
violation of, this title or the rules, regulations, or orders 
thereunder. Any criminal proceeding may be brought in the 
district wherein any act or transaction constituting the 
violation occurred. Any suit or action to enforce any liability 
or duty created by, or to enjoin any violation of, this title 
or rules, regulations, or orders thereunder, may be brought in 
any such district or in the district wherein the defendant is 
an inhabitant or transacts business, and process in such cases 
may be served in any district of which the defendant is an 
inhabitant or transacts business or wherever the defendant may 
be found. Judgments and decrees so rendered shall be subject to 
review as provided in sections 1254, 1291, 1292, and 1294 of 
title 28, United States Code. No costs shall be assessed for or 
against the Commission in any proceeding under this title 
brought by or against the Commission in any court.

                         [VALIDITY OF CONTRACTS

    [Sec. 26. (a) Any condition, stipulation, or provision 
binding any person to waive compliance with any provision of 
this title or with any rule, regulation, or order thereunder 
shall be void.
    [(b) Every contract made in violation of any provision of 
this title or of any rule, regulation, or order thereunder, and 
every contract heretofore or hereafter made, the performance of 
which involves the violation of, or the continuance of any 
relationship or practice in violation of, any provision of this 
title, or any rule, regulation, or order thereunder, shall be 
void (1) as regards the rights of any person who, in violation 
of any such provision, rule, regulation, or order, shall have 
made or engaged in the performance of any such contract, and 
(2) as regards the rights of any person who, not being a party 
to such contract, shall have acquired any right thereunder with 
actual knowledge of the facts by reason of which the making or 
performance of such contract was in violation of any such 
provision, rule, regulation, or order.
    [(c) Nothing in this title shall be construed (1) to affect 
the validity of any loan or extension of credit (or any 
extension or renewal thereof) made or of any lien created prior 
or subsequent to the enactment of this title, unless at the 
time of the making of such loan or extension of credit (or 
extension or renewal thereof) or the creating of such lien, the 
person making such loan or extension of credit (or extension or 
renewal thereof) or acquiring such lien shall have actual 
knowledge of facts by reason of which the making of such loan 
or extension of credit (or extension or renewal thereof) or the 
acquisition of such lien as a violation of the provisions of 
this title or any rule or regulation thereunder, or (2) to 
afford a defense to the collection of any debt or obligation or 
the enforcement of any lien by any person who shall have 
acquired such debt, obligation, or lien in good faith for value 
and without actual knowledge of the violation of any provision 
of this title or any rule or regulation thereunder affecting 
the legality of such debt, obligation, or lien.

  [LIABILITY OF CONTROLLING PERSONS; PREVENTING COMPLIANCE WITH TITLE

    [Sec. 27. (a) It shall be unlawful for any person, directly 
or indirectly, to cause to be done any act or thing through or 
by means of any other person which it would be unlawful for 
such person to do under the provisions of this title or any 
rule, regulation, or order thereunder.
    [(b) It shall be unlawful for any person without just cause 
to hinder, delay, or obstruct the making, filing, or keeping of 
any information, document, report, record, or account required 
to be made, filed, or kept under any provision of this title or 
any rule, regulation, or order thereunder.

                       [UNLAWFUL REPRESENTATIONS

    [Sec. 28. It shall be unlawful for any person in issuing, 
selling, offering for sale any security of a registered holding 
company or subsidiary company thereof, to represent or imply in 
any manner whatsoever that such security has been guaranteed, 
sponsored, or recommended for investment by the United States 
or any agency or officer thereof.

                               [PENALTIES

    [Sec. 29.  Any person who willfully violates any provision 
in this title or any rule, regulation, or order thereunder 
(other than an order of the Commission under subsection (b), 
(d), (e), or (f) of section 11), or any person who willfully 
makes any statement or entry in an application, report, 
document, account, or record filed or kept or required to be 
filed or kept under the provisions of this title or any rule, 
regulation, or order thereunder, knowing such statement or 
entry to be false or misleading in any material respect, or any 
person who willfully destroys (except after such time as may be 
prescribed under any rules or regulations under this title), 
mutilates, alters, or by any means, or device falsifies any 
account, correspondence, memorandum, book, paper, or other 
record kept or required to be kept under the provisions of this 
title or any rule, regulation, or order thereunder, shall upon 
conviction be fined not more than $10,000 or imprisoned not 
more than five years, or both, except that in the case of a 
violation of a provision of subsection (a) or (b) of section 4 
by a holding company which is not an individual, the fine 
imposed upon such holding company shall be a fine not exceeding 
$200,000; but no person shall be convicted under this section 
for the violation of any rule, regulation, or order if he 
proves that he had no knowledge of such rule, regulation, or 
order.

           [STUDY OF PUBLIC-UTILITY AND INVESTMENT COMPANIES

    [Sec. 30. The Commission is authorized and directed to make 
studies and investigations of public-utility companies, the 
territories served or which can be served by public-utility 
companies, and the manner in which the same are or can be 
served, to determine the sizes, types, and locations of public-
utility companies which do or can operate most economically and 
efficiently in the public interest, in the interest of 
investors and consumers, and in furtherance of a wider and more 
economical use of gas and electric energy; upon the basis of 
such investigations and studies the Commission shall make 
public from time to time its recommendations as to the type and 
size of geographically and economically integrated public-
utility systems which, having regard for the nature and 
character of the locality served, can best promote and 
harmonize the interests of the public, the investor, and the 
consumer.

            [HIRING AND LEASING AUTHORITY OF THE COMMISSION

    [Sec. 31. The provisions of section 4(b) of the Securities 
Exchange Act of 1934 shall be applicable with respect to the 
power of the Commission--
          [(1) to appoint and fix the compensation of such 
        employees as may be necessary for carrying out its 
        functions under this title, and
          [(2) to lease and allocate such real property as may 
        be necessary for carrying out its functions under this 
        title.

[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. 
        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 energydirectly 
                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.
    [(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;
          [(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 Facilities.--The 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--
                  [(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. 33. [TREATMENT OF FOREIGN UTILITIES.

    [(a) Exemptions for Foreign Utility Companies.--
          [(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 \1\ 
        (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; determine 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.\1\
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    \1\ So in original. Probably should be ``subsection''.
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          [(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 Companies.--Notwithstanding 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 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 his 
        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 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 
        acquisiitn, or for the purposes of financing the 
        ownership or operation, of a foreign utility company, 
        nor shall any such pubic 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 pubic 
                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\1\ (f)(1); and
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     \1\So in original. Probably should be ``subsection''.
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                  [(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 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.

[SEC. 34. EXEMPT TELECOMMUNICATIONS COMPANIES.

    [(a) Definitions.--For purposes of this section--
          [(1) Exempt telecommunications company.--The term 
        ``exempt telecommunications company'' means any person 
        determined by the Federal Communications Commission to 
        be engaged directly or indirectly, wherever located, 
        through one or more affiliates (as defined in section 
        2(a)(11)(B)), and exclusively in the businesses of 
        providing
                  [(A) telecommunications services;
                  [(B) information services;
                  [(C) other services or products subject to 
                the jurisdiction of the Federal Communications 
                Commission; or
                  [(D) products or services that are related or 
                incidental to the provision of a product or 
                service described in subparagraph (A) (B), or 
                (C).
        No person shall be deemed to be an exempt 
        telecommunications company under this section unless 
        such person has applied to the Federal Communications 
        Commission for a determination under this paragraph. A 
        person applying in good faith for such a determination 
        shall be deemed an exempt telecommunications company 
        under this section, with all of the exemptions provided 
        by this section, until the Federal Communications 
        Commission makes such determination. The Federal 
        Communications Commission shall make such determination 
        within 60 days of its receipt of any such application 
        filed after the enactment of this section and shall 
        notify the Commission whenever a determination is made 
        under this paragraph that any person is an exempt 
        telecommunications company. Not later than 12 months 
        after the date of enactment of this section, the 
        Federal Communications Commission shall promulgate 
        rules implementing the provisions of this paragraph 
        which shall be applicable to applications filed under 
        this paragraph after the effective date of such rules.
          [(2) Other terms.--For purposes of this section, the 
        terms ``telecommunications services'' and ``information 
        services'' shall have the same meanings as provided in 
        the Communications Act of 1934.
    [(b) State Consent for Sale of Existing Rate-Based 
Facilities.--If a rate or charge for the sale of electric 
energy or natural gas (other than any portion of a rate or 
charge which represents recovery of the cost of a wholesale 
rate or charge) for, or in connection with, assets of a public 
utility company that is an associate company or affiliate of a 
registered holding company was in effect under the laws of any 
State as of December 19, 1995, the public utility company 
owning such assets may not sell such assets to an exempt 
telecommunications company that is an associate company or 
affiliate unless State commissions having jurisdiction over 
such public utility company approve such sale. Nothing in this 
subsection shall preempt the otherwise applicable authority of 
any State to approve or disapprove the sale of such assets. The 
approval of the Commission under this Act shall not be required 
for the sale of assets as provided in this subsection.
    [(c) Ownership of ETCS 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 
telecommunications companies.
    [(d) Ownership of ETCS by Registered Holding Companies.--
Notwithstanding any provision of this Act, 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 
telecommunications companies.
    [(e) Financing and Other Relationships Between ETCS and 
Registered Holding Companies.--The relationship between an 
exempt telecommunications company 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 telecommunications companies by a registered 
        holding company (regardless of activities engaged in or 
        where facilities owned or operated by such exempt 
        telecommunications companies 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 telecommunications companies by a 
        registered holding company (regardless of activities 
        engaged in or where facilities owned or operated by 
        such exempt telecommunications companies are located) 
        shall be considered as reasonably incidental, or 
        economically necessary or appropriate, to the 
        operations of an integrated public utility system;
          [(3) the Commission shall have no jurisdiction under 
        this Act over, and there shall be no restriction or 
        approval required under this Act with respect to (A) 
        the issue or sale of a security by a registered holding 
        company for purposes of financing the acquisition of an 
        exempt telecommunications company, or (B) the guarantee 
        of a security of an exempt telecommunications company 
        by a registered holding company; and
          [(4) except for costs that should be fairly and 
        equitably allocated among companies that are associate 
        companies of a registered holding company, the 
        Commission shall have no jurisdiction under this Act 
        over the sales, service, and construction contracts 
        between an exempt telecommunications company and a 
        registered holding company, its affiliates and 
        associate companies.
    [(f) Reporting Obligations Concerning Investments and 
Activities of Registered Public-Utility Holding Company 
Systems.--
          [(1) Obligations to report information.--Any 
        registered holding company or subsidiary thereof that 
        acquires or holds the securities, or an interest in the 
        business, of an exempt telecommunications company shall 
        file with the Commission such information as the 
        Commission, by rule, may prescribe concern
                [(A) investments and activities by the 
                registered holding company, or any subsidiary 
                thereof, with respect to exempt 
                telecommunications companies, and
                  [(B) any activities of an exempt 
                telecommunications company within the holding 
                company system, that are reasonably likely to 
                have a material impact on the financial or 
                operational condition of the holding company 
                system.
          [(2) Authority to require additional information.--
        If, based on reports provided to the Commission 
        pursuant to paragraph (1) of this subsection or other 
        available information, the Commission reasonably 
        concludes that it has concerns regarding the financial 
        or operational condition of any registered holding 
        company or any subsidiary thereof (including an exempt 
        telecommunications company), the Commission may require 
        such registered holding company to make additional 
        reports, and provide additional information.
          [(3) Authority to limit disclosure of information.--
        Notwithstanding any other provision of law, the 
        Commission shall not be compelled to disclose any 
        information required to be reported under this 
        subsection. Nothing in this subsection shall authorize 
        the Commission to withhold the information from 
        Congress, or prevent the Commission from complying with 
        a request for information from any other Federal or 
        State department or agency requesting the information 
        for purposes within the scope of its jurisdiction. For 
        purposes of section 552 of title 5, United States Code, 
        this subsection shall be considered a statute described 
        in subsection (b)(3)(B) of such section 552.
    [(g) Assumption of Liabilities.--Any public utility company 
that is an associate company, or an affiliate, of a registered 
holding company and that is subject to the jurisdiction of a 
State commission with respect to its retail electric or gas 
rates shall not issue any security for the purpose of financing 
the acquisition, ownership, or operation of an exempt 
telecommunications company. Any public utility company that is 
an associate company, or an affiliate, of a registered holding 
company and that is subject to the jurisdiction of a State 
commission with respect to its retail electric or gas rates 
shall not assume any obligation or liability as guarantor, 
endorser, surety, or otherwise by the public utility company in 
respect of an security of an exempt telecommunications company.
    [(h) Pledging or Mortgaging of Assets.--Any public utility 
company that is an associate company, or affiliate, of a 
registered holding company and that is subject to the 
jurisdiction of a State commission with respect to its retail 
electric or gas rates shall not pledge, mortgage, or otherwise 
use as collateral any assets of the public utility company or 
assets of any subsidiary company thereof for be benefit of an 
exempt telecommunications company.
    [(i) Protection Against Abusive Affiliate Transactions---A 
public utility company may enter into a contract to purchase 
services or products described in subsection (a)(1) from an 
exempt telecommunications company that is an affiliate or 
associate company of the public utility company only if--
          [(1) every State commission having jurisdiction over 
        the retail rates of such public utility company 
        approves such contract, or
          [(2) such public utility company is not subject to 
        State commission retail rate regulation and the 
        purchased services or product--
                  [(A) would not be resold to any affiliate or 
                associate company; or
                  [(B) 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 the 
                determination required by subparagraph (A).
The requirements of this subsection shall not apply in any case 
in which the State or the State commission concerned publishes 
a notice that the State or State commission waives its 
authority under this subsection.
    [(j) Nonpreemption of Rate Authority.--Nothing in this Act 
shall preclude the Federal Energy Regulatory Commission or a 
State commission from exercising its jurisdiction under 
otherwise applicable law to determine whether a public utility 
company may recover in rates the costs of products or services 
purchased from or sold to an associate company or affiliate 
that is an exempt telecommunications company, regardless of 
whether such costs are incurred through the direct or indirect 
purchase or sale of products or services from such associate 
company or affiliate.
    [(k) 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.
    [(l) 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) a public utility company subject to its 
        regulatory authority under State law;
          [(B) any exempt telecommunications company selling 
        products or services to such public utility company or 
        to an associate company of such public utility company; 
        and
          [(C) any associate company or affiliate of an exempt 
        telecommunications company which sells products or 
        services to a public 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 or gas 
service in connection with the activities of such exempt 
telecommunications company.
    [(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.
    [(m) Independent Audit Authority for State Commissions.--
          [(1) State may order audit.--Any State commission 
        with jurisdiction over a public utility company that--
                  [(A) is an associate company of a registered 
                holding company; and
                  [(B) transacts business, directly or 
                indirectly, with a subsidiary company, an 
                affiliate or an associate company that is an 
                exempt telecommunications company,
        may order an independent audit to be performed, no more 
        frequently than on an annual basis, of all matters 
        deemed relevant by the selected auditor that reasonably 
        relate to retail rates: Provided, That such matters 
        relate, directly or indirectly, to transactions or 
        transfers between the public utility company subject to 
        its jurisdiction and such exempt telecommunications 
        company.
          [(2) Selection of firm to conduct audit.--(A) If a 
        State commission orders an audit in accordance with 
        paragraph (1), the public utility company and the State 
        commission shall jointly select, within 60 days, a firm 
        to perform the audit. The firm selected to perform the 
        audit shall possess demonstrated qualifications 
        relating to--
                  [(i) competency, including adequate technical 
                training and professional proficiency in each 
                discipline necessary to carry out the audit; 
                and
                  [(ii) independence and objectivity, including 
                that the firm be free from personal or external 
                impairments to independence, and should assume 
                an independent position with the State 
                commission and auditee, making certain that the 
                audit is based upon an impartial consideration 
                of all pertinent facts and responsible 
                opinions.
          (B) The public utility company and the exempt 
        telecommunications company shall cooperate fully with 
        all reasonable requests necessary to perform the audit 
        and the public utility company shall bear all costs of 
        having the audit performed.
          [(3) Availability of auditor's report.--The auditor's 
        report shall be provided to the State commission not 
        later than 6 months after the selection of the auditor, 
        and provided to the public utility company not later 
        than 60 days thereafter.
    [(n) Applicability of Telecommunications Regulation.--
Nothing in this section shall affect the authority of the 
Federal Communications Commission under the Communications Act 
of 1934, or the authority of State commissions under State laws 
concerning the provision of telecommunications services, to 
regulate the activities of an exempt telecommunications 
company.

                      [SEPARABILITY OF PROVISIONS

    [Sec. 35. If any provision of this title or the application 
of such provision to any person or circumstances shall be held 
invalid, the remainder of the title and the application of such 
provision to persons or circumstances other than those as to 
which it is held invalid shall not be affected thereby.

                              [SHORT TITLE

    [Sec. 36. This title may be cited as the ``Public Utility 
Holding Company Act of 1935''.]
                              ----------                                
        

                   UNITED STATES HOUSING ACT OF 1937

 Act of September 1, 1937, chapter 896, as amended (42 U.S.C. 1437 et 
                                 seq.)

    Sec. 9. * * *
    (d) * * *
      (1) * * *
                  (1) capital expenditures to improve the 
                security and safety of residents; [and]
                  (J) homeownership activities, including 
                programs under section 1437z-4 of this 
                title[.];
                  (K) improvement of energy and water-use 
                efficiency by installing fixtures and fittings 
                that conform to the American Society of 
                Mechanical Engineers/American National 
                Standards Institute standards Al12.19.2-1998 
                and A112.18.1-2000, or any revision thereto, 
                applicable at the time of installation, and by 
                increasing energy efficiency and water 
                conservation by such other means as the 
                Secretary determines are appropriate; and
                  (L) integrated utility management and capital 
                planning to maximize energy conservation and 
                efficiency measures.

           *       *       *       *       *       *       *

    (e)* * *
          (2)* * *
                  (C) Treatment of savings.--[The] (i) In 
                General.--The treatment of utility and waste 
                management costs under the formula shall 
                provide that a public housing agency shall 
                receive the full financial benefit from any 
                reduction in the cost of utilities or waste 
                management resulting from any contract with a 
                third party to undertake energy conservation 
                improvements in one or more of its public 
                housing projects.
                  (ii) Third party contracts.--Contracts 
                described in clause (i) may include contracts 
                for equipment conversions to less costly 
                utility sources, projects with resident-paid 
                utilities, and adjustments to frozen base year 
                consumption, including systems repaired to meet 
                applicable building and safety codes and 
                adjustments for occupancy rates increased by 
                rehabilitation.
                  (iii) Term of contract.--The total term of a 
                contract described in clause (i) shall not 
                exceed 20 years to allow longer payback periods 
                for retrofits, including windows, heating 
                system replacements, wall insulation, site-
                based generations, advanced energy savings 
                technologies, including renewable energy 
                generation, and other such retrofits.

           *       *       *       *       *       *       *

                              ----------                                
        

                            NATURAL GAS ACT

Act of June 21, 1938, chapter 556, as amended (15 U.S.C. 717-717w)

           *       *       *       *       *       *       *

                           GENERAL PENALTIES

    Sec. 21. (a) Any person who willfully and knowingly does or 
causes or suffers to be done any act, matter, or thing in this 
Act prohibited or declared to be unlawful, or who willfully and 
knowingly omits or fails to do any act, matter or thing in this 
Act required to be done, or willfully and knowingly causes or 
suffers such omission or failure, shall, upon conviction 
thereof, be punished by a fine of not more than [$5,000] 
$1,000,000 or by imprisonment for not more than [two years] 
five years, or both.
    (b) Any person who willfully and knowingly violates any 
rule, regulation, restriction, condition, or order made or 
imposed by the Commission under authority of this Act, shall, 
in addition to any other penalties provided by law, be punished 
upon conviction thereof by a fine of not exceeding [$500] 
$50,000 for each and every day during which such offense 
occurs.

           *       *       *       *       *       *       *

                              ----------                                
        

NATIONAL HOUSING ACT

           *       *       *       *       *       *       *

Act of June 27, 1938, as amended (12 U.S.C. 1701 et seq.)

           *       *       *       *       *       *       *

    Sec. 203. * * *
    (b) * * *
          (2) * * *
                  (B)(iii) * * * As used herein, the term 
                ``veteran'' means any person who served on 
                active duty in the armed forces of the United 
                States for a period of not less than ninety 
                days (or as certified by the Secretary of 
                Defense as having performed extra-hazardous 
                service), and who was discharged or released 
                therefrom under conditions other than 
                dishonorable, except that persons enlisting in 
                the armed forces after September 7, 1980, or 
                entering active duty after October 16, 1981, 
                shall have their eligibility determined in 
                accordance with section 3103A(d) of title 38, 
                United States Code.
Notwithstanding any other provision of this paragraph or 
paragraph (10), the amount which may be insured under this 
section may be increased by up to [20] 30 percent if such 
increase is necessary to account for the increased cost of the 
residence due to the installation of a solar energy system (as 
defined in subparagraph (3) of the last paragraph of section 
2(a) of this Act) therein.

           *       *       *       *       *       *       *

    Sec. 207. * * *
    (c) * * *
          (3) * * * No mortgage shall be accepted for insurance 
        under this section or section 210 unless the Secretary 
        finds that the property or project, with respect to 
        which the mortgage is executed, is economically sound. 
        Such property or project may include five or more 
        family units and may include such commercial and 
        community facilities as the Secretary deems adequate to 
        serve the occupants.
Notwithstanding any other provision of this paragraph, the 
amount which may be insured under this section may be increased 
by up to [20] 30 percent if such increase is necessary to 
account for the increased cost of the project due to the 
installation therein of a solar energy system (as defined in 
subparagraph (3) of the last paragraph of section 2(a) of this 
Act) or residential energy conservation measures (as defined in 
section 210(11)(A) through (G) and (I) of Public Law 95-619) in 
cases where the Secretary determines that such measures are in 
addition to those required under the minimum property standards 
and will be cost-effective over the life of the measure.

           *       *       *       *       *       *       *

    Sec. 213. * * *
    (p) Notwithstanding any other provision of this section, 
the project mortgage amounts which may be insured under this 
section may be increased by up to [20 per centum] 30 percent if 
such increase is necessary to account for the increased cost of 
the project due to the installation therein of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation 
measures (as defined in section 210(11)(A) through (G) and (1) 
of Public Law 95-619) in cases where the Secretary determines 
that such measures are in addition to those required under the 
minimum property standards and will be cost-effective over the 
life of the measure.

           *       *       *       *       *       *       *

    Sec. 220.
    (d) * * *
      (3) * * *
                  (B)(iii) * * * Provided further, That nothing 
                contained in this subparagraph shall preclude 
                the insurance of mortgages covering existing 
                multifamily dwellings to be rehabilitated or 
                reconstructed for the purposes set forth in 
                subsection (a) of this section: And provided 
                further, That the Secretary may further 
                increase any of the dollar amount limitations 
                which would otherwise apply for the purpose of 
                this clause by not to exceed [20 per centum] 30 
                percent if such increase is necessary to 
                account for the increased cost of the project 
                due to the installation therein of a solar 
                energy system (as defined in subparagraph (3) 
                of the last paragraph of section 2(a) of this 
                Act) or residential energy conservation 
                measures (as defined in section 210(11)(A) 
                through (G) and (I) of Public Law 95-619) in 
                cases where the Secretary determines that such 
                measures are in addition to those required 
                under the minimum property standards and will 
                be cost-effective over the life of the measure; 
                and

           *       *       *       *       *       *       *

    Sec. 221. * * *
    (k) With respect to any project insured under subsection 
(d)(3) or (d)(4), the Secretary may further increase the dollar 
amount limitations which would otherwise apply for the purpose 
of those subsections by up to [20 per centum] 30 percent if 
such increase is necessary to account for the increased cost of 
the project due to the installation therein of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation 
measures (as defined in section 210(11)(A) through (G) and (I) 
of Public Law 95-619) in cases where the Secretary determines 
that such measures are in addition to those required under the 
minimum property standards and will be cost-effective over the 
life of the measure.

           *       *       *       *       *       *       *

    Sec. 231. * * *
    (c)(2) (A) not to exceed, for such part of the property or 
project as may be attributable to dwelling use (excluding 
exterior land improvement as defined by the Secretary), $35,978 
per family unit without a bedroom, $40,220 per family unit with 
one bedroom, $48,029 per family unit with two bedrooms, $57,798 
per family unit with three bedrooms, and $67,950 per family 
unit with four or more bedrooms; except that as to projects to 
consist of elevator-type structures the Secretary may, in his 
discretion, increase the dollar amount limitations per family 
unit to not to exceed $40,876 per family unit without a 
bedroom, $46,859 per family unit with one bedroom, $56,979 per 
family unit with two bedrooms, $73,710 per family unit with 
three bedrooms, and $80,913 per family unit with four or more 
bedrooms, as the case may be, to compensate for the higher 
costs incident to the construction of elevator-type structures 
of sound standards of construction and design; (B) the 
Secretary may, by regulation, increase any of the dollar amount 
limitations in subparagraph (A) (as such limitations may have 
been adjusted in accordance with section 206A of this Act) by 
not to exceed 110 percent in any geographical area where the 
Secretary finds that cost levels so require and by not to 
exceed 140 percent where the Secretary determines it necessary 
on a project-by-project basis, but in no case may any such 
increase exceed 90 percent where the Secretary determines that 
a mortgage purchased or to be purchased by the Government 
National Mortgage Association in implementing its special 
assistance functions under section 305 of this Act (as such 
section existed immediately before November 30, 1983) is 
involved; (C) the Secretary may, by regulation, increase any of 
the dollar limitations in subparagraph (A) (as such limitations 
may have been adjusted in accordance with section 206A of this 
Act) by not to exceed [20 per centum] 30 percent if such 
increase is necessary to account for the increased cost of the 
project due to the installation therein of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(a) of this Act) or residential energy conservation 
measures (as defined in section 210(11)(A) through (G) and (1) 
of Public Law 95-619) in cases where the Secretary determines 
that such measures are in addition to those required under the 
minimum property standards and will be cost-effective over the 
life of the measure;

           *       *       *       *       *       *       *

    Sec. 234. * * *
    (j) The Secretary may further increase the dollar amount 
limitations which would otherwise apply under subsection (e) of 
this section by not to exceed [20 per centum] 30 percent if 
such increase is necessary to account for the increased cost of 
a project due to the installation therein of a solar energy 
system (as defined in subparagraph (3) of the last paragraph of 
section 2(A) of this Act) or residential energy conservation 
measures (as defined in section 210(11)(A) through (G) and (1) 
of Public Law 95-619) in cases where the Secretary determines 
that such measures are in addition to those required under the 
minimum property standards and will be cost-effective over the 
life of the measure.
                              ----------                                
        

                   OUTER CONTINENTAL SHELF LANDS ACT

Act of August 7, 1953, as amended (43 U.S.C. 1331 et seq.)

           *       *       *       *       *       *       *

    Sec. 8. [Leasing of] Leases, Easements, and Rights-of-Way 
on the Outer Continental Shelf.--(a)(1) * * *
    (3)(A) The Secretary may, in order to promote increased 
production on the lease area, through direct, secondary, or 
tertiary recovery means, reduce or eliminate any royalty or net 
profit share set forth in the lease for such area.
    (B) In the Western and Central Planning Areas of the Gulf 
of Mexico and the portion of the Eastern Planning Area of the 
Gulf of Mexico encompassing whole lease blocks lying west of 87 
degrees, 30 minutes West longitude and in the Planning Areas 
offshore Alaska, the Secretary may, in order to--
          (i) promote development or increased production on 
        producing or non-producing leases; or
          (ii) encourage production of marginal resources on 
        producing or non-producing leases; through primary, 
        secondary, or tertiary recovery means, reduce or 
        eliminate any royalty or net profit share set forth in 
        the lease(s). With the lessee's consent, the Secretary 
        may make other modifications to the royalty or net 
        profit share terms of the lease in order to achieve 
        these purposes.

           *       *       *       *       *       *       *

    (p) Easements or Rights-of-Way for Energy and Related 
Purposes.--
          (1) The Secretary may grant an easement or right-of-
        way on the outer Continental Shelf for activities not 
        otherwise authorized in this Act, the Deepwater Port 
        Act of 1974 (33 U.S.C. 1501 et seq.), or the Ocean 
        Thermal Energy Conversion Act of 1980 (42 U.S. C. 9101 
        et seq.), or other applicable law when such 
        activities--
                  (A) support exploration, development, or 
                production of oil or natural gas, except that 
                such easements or rights-of-way shall not be 
                granted in areas where oil and gas preleasing, 
                leasing and related activities are prohibited 
                by a Congressional moratorium or a withdrawal 
                pursuant to section 12 of this Act;
                  (B) support transportation of oil or natural 
                gas;
                  (C) produce or support production, 
                transportation, or transmission of energy from 
                sources other than oil and gas; or
                  (D) use facilities currently or previously 
                used for activities authorized under this Act.
          (2) The Secretary shall promulgate regulations to 
        ensure that activities authorized under this subsection 
        are conducted in a manner that provides for safety, 
        protection of the environment, conservation of the 
        natural resources of the outer Continental Shelf, 
        appropriate coordination with other Federal agencies, 
        and a fair return to the Federal government for any 
        easement or right-of-way granted under this subsection. 
        Such regulations shall establish procedures for--
                  (A) public notice and comment on proposals to 
                be permitted pursuant to this subsection;
                  (B) consultation and review by State and 
                local governments that may be impacted by 
                activities to be permitted pursuant to this 
                subsection;
                  (C) consideration of the coastal zone 
                management program being developed or 
                administered by an affected coastal State 
                pursuant to section 305 or section 306 of the 
                Coastal Zone Management Act of 1972 (16 U.S.C. 
                1454, 1455); and
                  (D) consultation with the Secretary of 
                Defense and other appropriate agencies prior to 
                the issuance of an easement or right-of-way 
                under this subsection concerning issues related 
                to national security and navigational 
                obstruction.
          (3) The Secretary shall require the holder of an 
        easement or right-of-way granted under this subsection 
        to furnish a surety bond or other form of security, as 
        prescribed by the Secretary, and to comply with such 
        other requirements as the Secretary may deem necessary 
        to protect the interests of the United States.
          (4) This subsection shall not apply to any area 
        within the exterior boundaries of any unit of the 
        National Park System, National Wildlife Refuge System, 
        or National Marine Sanctuary System, or any National 
        Monument.
          (5) Nothing in this subsection shall be construed to 
        amend or repeal, expressly by implication, the 
        applicability of any other law, including but not 
        limited to, the Coastal Zone Management Act (16 U.S.C. 
        1455 et seq.) or the National Environmental Policy Act 
        of 1969 (42 U.S.C. 4321 et seq.).

           *       *       *       *       *       *       *

SEC. 32. COASTAL IMPACT ASSISTANCE FAIRNESS PROGRAM.

    (a) Definitions.--When used in this section:
          (1) The term ``coastal political subdivision `` means 
        a county, parish, or any equivalent subdivision of a 
        Producing Coastal State in all or part of which 
        subdivision lies within the coastal zone (as defined in 
        section 304(1) of the Coastal Zone Management Act (16 
        U.S.C. 1453(1))) and within a distance of 200 miles 
        from the geographic center of any leased tract.
          (2) The term ``coastal population ``'means the 
        population of all political subdivisions, as determined 
        by the most recent official data of the Census Bureau, 
        contained in whole or in part within the designated 
        coastal boundary of a State as defined in a State's 
        coastal zone management program under the Coastal Zone 
        Management Act (16 U.S.C. 1451 et seq.).
          (3) The term ``Coastal State'' has the same meaning 
        as provided by subsection 304(4) of the Coastal Zone 
        Management Act (16 U.S.C. 1453(4)).
          (4) The term ``coastline'' has the same meaning as 
        the term ``coast line'' as defined in subsection 2(c) 
        of the Submerged Lands Act (43 U.S.C. 1301(c)).
          (5) The term ``distance'' means the minimum great 
        circle distance, measured in statute miles.
          (6) The term ``leased tract'' means a tract 
        maintained under section 6 or leased under section 8 
        for the purpose of drilling for, developing, and 
        producing oil and natural gas resources.
          (7) The term ``Producing Coastal State'' means a 
        Coastal State with a coastal seaward boundary within 
        200 miles from the geographic center of a leased tract 
        other than a leased tract within any area of the Outer 
        Continental Shelf where a moratorium on new leasing was 
        in effect as of January 1, 2002, unless the lease was 
        issued prior to the establishment of the moratorium and 
        was in production on January 1, 2002.
          (8) The term ``qualified Outer Continental Shelf 
        revenues'' means all amounts received by the United 
        States from each leased tract or portion of a leased 
        tract lying seaward of the zone defined and governed by 
        section 8(g) of this Act, or lying within such zone but 
        to which section 8(g) does not apply, the geographic 
        center of which lies within a distance of 200 miles 
        from any part of the coastline of any Producing Coastal 
        State, including bonus bids, rents, royalties 
        (including payments for royalties taken in kind and 
        sold), net profit share payments, and related late 
        payment interest. Such term shall only apply to leases 
        issued after January 1, 2003 and revenues from existing 
        leases that occurs after January 1, 2003. Such term 
        does not include any revenues from a leased tract or 
        portion of a leased tract that is included within any 
        area of the Outer Continental Shelf where a moratorium 
        on new leasing was in effect as of January 1, 2002, 
        unless the lease was issued prior to the establishment 
        of the moratorium and was in production on January 1, 
        2002.
          (9) The term ``Secretary'' means the Secretary of 
        Interior.
    (b) Authorization.--For fiscal years 2004 through 2009, an 
amount equal to not more than 12.5 percent of qualified Outer 
Continental Shelf revenues is authorized to be appropriated for 
the purposes of this section.
    (c) Impact Assistance Payments to States and Political 
Subdivisions.--The Secretary shall make payments from the 
amounts available under this section to Producing Coastal 
States with an approved Coastal Impact Assistance Plan, and to 
coastal political subdivisions as follows:
          (1) Of the amounts appropriated, the allocation for 
        each Producing Coastal State shall be calculated based 
        on the ratio of qualified Outer Continental Shelf 
        revenues generated off the coastline of the Producing 
        Coastal State to the qualified Outer Continental Shelf 
        revenues generated off the coastlines of all Producing 
        Coastal States for each fiscal year. Where there is 
        more than one Producing Coastal State within 200 miles 
        of a leased tract, the amount of each Producing Coastal 
        State's allocation for such leased tract shall be 
        inversely proportional to the distance between the 
        nearest point on the coastline of such State and the 
        geographic center of each leased tract or portion of 
        the leased tract (to the nearest whole mile) that is 
        within 200 miles of that coastline, as determined by 
        the Secretary.
          (2) Thirty-five percent of each Producing Coastal 
        State's allocable share as determined under paragraph 
        (1) shall be paid directly to the coastal political 
        subdivisions by the Secretary based on the following 
        formula:
                  (A) Twenty-five percent shall be allocated 
                based on the ratio of such coastal political 
                subdivision's coastal population to the coastal 
                population of all coastal political 
                subdivisions in the Producing Coastal State.
                  (B) Twenty-five percent shall be allocated 
                based on the ratio of such coastal political 
                subdivision's coastline miles to the coastline 
                miles of a coastal political subdivision in the 
                Producing Coastal State except that for those 
                coastal political subdivisions in the State of 
                Louisiana without a coastline, the coastline 
                for purposes of this element of the formula 
                shall be the average length of the coastline of 
                the remaining coastal subdivisions in the 
                state.
                  (C) Fifty percent shall be allocated based on 
                the relative distance of such coastal political 
                subdivision from any leased tract used to 
                calculate the Producing Coastal State's 
                allocation using ratios that are inversely 
                proportional to the distance between the point 
                in the coastal political subdivision closest to 
                the geographic center of each leased tract or 
                portion, as determined by the Secretary, except 
                that in the State of Alaska, the funds for this 
                element of the formula shall be divided equally 
                among the two closest coastal political 
                subdivisions. For purposes of the calculations 
                under this subparagraph, a leased tract or 
                portion of a leased tract shall be excluded if 
                the leased tract or portion is located in a 
                geographic area where a moratorium on new 
                leasing was in effect on January 1, 2002, 
                unless the lease was issued prior to the 
                establishment of the moratorium and was in 
                production on January 1, 2002.
          (3) Any amount allocated to a Producing Coastal State 
        or coastal political subdivision but not disbursed 
        because of a failure to have an approved Coastal Impact 
        Assistance Plan under this section shall be allocated 
        equally by the Secretary among all other Producing 
        Coastal States in a manner consistent with this 
        subsection except that the Secretary shall hold in 
        escrow such amount until the final resolution of any 
        appeal regarding the disapproval of a plan submitted 
        under this section. The Secretary may waive the 
        provisions of this paragraph and hold a Producing 
        Coastal State's allocable share in escrow if the 
        Secretary determines that such State is making a good 
        faith effort to develop and submit, or update, a 
        Coastal Impact Assistance Plan.
          (4) For purposes of this subsection, calculations of 
        payments for fiscal years 2004 through 2006 shall be 
        made using qualified Outer Continental Shelf revenues 
        received in fiscal year 2003, and calculations of 
        payments for fiscal years 2007 through 2009 shall be 
        made using qualified Outer Continental Shelf revenues 
        received in fiscal year 2006.
    (d) Coastal Impact Assistance Plan.--
          (1) The Governor of each Producing Coastal State 
        shall prepare, and submit to the Secretary, a Coastal 
        Impact Assistance Plan. The Governor shall solicit 
        local input and shall provide for public participation 
        in the development of the plan. The plan shall be 
        submitted to the Secretary by July 1, 2004. Amounts 
        received by Producing Coastal States and coastal 
        political subdivisions may be used only for the 
        purposes specified in the Producing Coastal State's 
        Coastal Impact Assistance Plan.
          (2) The Secretary shall approve a plan under 
        paragraph (1) prior to disbursement of amounts under 
        this section. The Secretary shall approve the plan if 
        the Secretary determines that the plan is consistent 
        with the uses set forth in subsection (f) of this 
        section and if the plan contains--
                  (A) the name of the State agency that will 
                have the authority to represent and act for the 
                State in dealing with the Secretary for 
                purposes of this section;
                  (B) a program for the implementation of the 
                plan which describes how the amounts provided 
                under this section will be used;
                  (C) a contact for each political subdivision 
                and description of how coastal political 
                subdivisions will use amounts provided under 
                this section, including a certification by the 
                Governor that such uses are consistent with the 
                requirements of this section;
                  (D) certification by the Governor that ample 
                opportunity has been accorded for public 
                participation in the development and revision 
                of the plan; and
                  (E) measures for taking into account other 
                relevant Federal resources and programs.
          (3) The Secretary shall approve or disapprove each 
        plan or amendment within 90 days of its submission.
          (4) Any amendment to the plan shall be prepared in 
        accordance with the requirements of this subsection and 
        shall be submitted to the Secretary for approval or 
        disapproval.
    (e) Authorized Uses.--Producing Coastal States and coastal 
political subdivisions shall use amounts provided under this 
section, including any such amounts deposited in a State or 
coastal political subdivision administered trust fund dedicated 
to uses consistent with this subsection, in compliance with 
Federal and State law and only for one or more of the following 
purposes--
          (1) projects and activities for the conservation, 
        protection or restoration of coastal areas including 
        wetlands;
          (2) mitigating damage to fish, wildlife or natural 
        resources;
          (3) planning assistance and administrative costs of 
        complying with the provisions of this section;
          (4) implementation of Federally approved marine, 
        coastal, or comprehensive conservation management 
        plans; and
          (5) mitigating impacts of Outer Continental Shelf 
        activities through funding onshore infrastructure and 
        public service needs.
    (f) Compliance With Authorized Uses.--If the Secretary 
determines that any expenditure made by a Producing Coastal 
State or coastal political subdivision is not consistent with 
the uses authorized in subsection (e) of this section, the 
Secretary shall not disburse any further amounts under this 
section to that Producing Coastal State or coastal political 
subdivision until the amounts used for the inconsistent 
expenditure have been repaid or obligated for authorized uses.

           *       *       *       *       *       *       *

                              ----------                              

                       ATOMIC ENERGY ACT OF 1954

Act of August 1, 1946, chapter 724, as amended by the Act of August 30, 
        1954, chapter 1073, as amended (42 U.S.C. 2011 et seq.)

CHAPTER 14. GENERAL AUTHORITY

           *       *       *       *       *       *       *

    Sec. 170. Indemnification and Limitation of Liability.
    (b) Amount and Type of Financial Protection for 
Licensees.--(1) The amount of primary financial protection 
required shall be the amount of liability insurance available 
from private sources, except that the Commission may establish 
a lesser amount on the basis of criteria set forth in writing, 
which it may revise from time to time, taking into 
consideration such factors as the following: (A) the cost and 
terms of private insurance, (B) the type, size, and location of 
the licensed activity and other factors pertaining to the 
hazard, and (C) the nature and purpose of the licensed 
activity: Provided, That for facilities designed for producing 
substantial amounts of electricity and having a rated capacity 
of 100,000 electrical kilowatts or more, the amount of primary 
financial protection required shall be the maximum amount 
available at reasonable cost and on reasonable terms from 
private sources (excluding the amount of private liability 
insurance available under the industry retrospective rating 
plan required in this subsection). Such primary financial 
protection may include private insurance, private contractual 
indemnities, self-insurance, other proof of financial 
responsibility, or a combination of such measures and shall be 
subject to such terms and conditions as the Commission may, by 
rule, regulation, or order, prescribe. The Commission shall 
require licensees that are required to have and maintain 
primary financial protection equal to the maximum amount of 
liability insurance available from private sources to maintain, 
in addition to such primary financial protection, private 
liability insurance available under an industry retrospective 
rating plan providing for premium charges deferred in whole or 
major part until public liability from a nuclear incident 
exceeds or appears likely to exceed the level of the primary 
financial protection required of the licensee involved in the 
nuclear incident: Provided, That such insurance is available 
to, and required of, all of the licensees of such facilities 
without regard to the manner in which they obtain other types 
or amounts of such primary financial protection: And provided 
further: That the maximum amount of the standard deferred 
premium that may be charged a licensee following any nuclear 
incident under such a plan shall not be more than [$63,000,000] 
$94,000,000 (subject to adjustment for inflation under 
subsection t.), but not more than [$10,000,000 in any 1 year] 
$15,000,000 in any 1 year (subject to adjustment for inflation 
under subsection t.), for each facility for which such licensee 
is required to maintain the maximum amount of primary financial 
protection: And provided further, That the amount which may be 
charged a licensee following any nuclear incident shall not 
exceed the licensee's pro rata share of the aggregate public 
liability claims and costs (excluding legal costs subject to 
subsection o. (1)(D), payment of which has not been authorized 
under such subsection) arising out of the nuclear incident. 
Payment of any State premium taxes which may be applicable to 
any deferred premium provided for in this Act shall be the 
responsibility of the licensee and shall not be included in the 
retrospective premium established by the Commission.

           *       *       *       *       *       *       *

    (5)(A) For purposes of this section only, the Commission 
shall consider a combination of facilities described in 
subparagraph (B) to be a single facility having a rated 
capacity of 100,000 electrical kilowatts or more.
    (B) A combination of facilities referred to in subparagraph 
(A) is 2 or more facilities located at a single site, each of 
which has a rated capacity of not more than 1,300,000 
electrical kilowatts.
    (c). Indemnification of [Licenses] Licensees by Nuclear 
Regulatory Commission.--The Commission shall, with respect to 
[licenses issued between August 30, 1954, and December 31, 
2003] licenses issued after August 30, 1954, for which it 
requires financial protection of less than $560,000,000, agree 
to indemnify and hold harmless the licensee and other persons 
indemnified, as their interest may appear, from public 
liability arising from nuclear incidents which is in excess of 
the level of financial protection required of the licensee. The 
aggregate indemnity for all persons indemnified in connection 
with each nuclear incident shall not exceed $500,000,000, 
excluding costs of investigating and settling claims and 
defending suits for damage: Provided, however, That this amount 
of indemnity shall be reduced by the amount that the financial 
protection required shall exceed $60,000,000. Such a contract 
of indemnification shall cover public liability arising out of 
or in connection with the licensed activity. [With respect to 
any production or utilization facility for which a construction 
permit is issued between August 30, 1954, and December 31, 
2003, the requirements of this subsection shall apply to any 
license issued for such facility subsequent to December 31, 
2003.]
    (d) Indemnification of Contractors by Department of 
Energy.--(1)(A) In addition to any other authority the 
Secretary of Energy (in this section referred to as the 
``Secretary'') may have, the Secretary shall[, until December 
31, 2004,] enter into agreements of indemnification under this 
subsection with any person who may conduct activities under a 
contract with the Department of Energy that involve the risk of 
public liability and that are not subject to financial 
protection requirements under subsection b. or agreements of 
indemnification under subsection c. or k.

           *       *       *       *       *       *       *

    [(2) In agreements of indemnification entered into under 
paragraph (1), the Secretary may require the contractor to 
provide and maintain financial protection of such a type and in 
such amounts as the Secretary shall determine to be appropriate 
to cover public liability arising out of or in connection with 
the contractual activity, and shall indemnify the persons 
indemnified against such claims above the amount of the 
financial protection required, to the full extent of the 
aggregate public liability of the persons indemnified for each 
nuclear incident, including such legal costs of the contractor 
as are approved by the Secretary.
    [(3)(A) Notwithstanding paragraph (2), if the maximum 
amount of financial protection required of the contractor, 
shall at all times remain equal to or greater than the maximum 
amount of financial protection required of licensees under 
subsection b.
    [(B) The amount of indemnity provided contractors under 
this subsection shall not, at any time, be reduced in the event 
that the maximum amount of financial protection required of 
licensees is reduced.
    [(C) All agreements of indemnification under which the 
Department of Energy (or its predecessor agencies) may be 
required to indemnify any person, shall be deemed to be 
amended, on the date of the enactment of the Price-Anderson 
Amendments Act of 1988, to reflect the amount of indemnity for 
public liability and any applicable financial protection 
required of the contractor under this subsection on such date.]
    (2) In an agreement of indemnification entered into under 
paragraph (1), the Secretary--
          (A) may require the contractor to provide and 
        maintain financial protection of such a type and in 
        such amounts as the Secretary shall determine to be 
        appropriate to cover public liability arising out of or 
        in connection with the contractual activity; and
          (B) shall indemnify the persons indemnified against 
        such liability above the amount of the financial 
        protection required, in the amount of $10,000,000,000 
        (subject to adjustment for inflation under subsection 
        t.), in the aggregate, for all persons indemnified in 
        connection with the contract and for each nuclear 
        incident, including such legal costs of the contractor 
        as are approved by the Secretary.
    (3) All agreements of indemnification under which the 
Department of Energy (or its predecessor agencies) may be 
required to indemnify any person under this section shall be 
deemed to be amended, on the date of enactment of the Price-
Anderson Amendments Act of 2003, to reflect the amount of 
indemnity for public liability and any applicable financial 
protection required of the contractor under this subsection.

           *       *       *       *       *       *       *

    (5) In the case of nuclear incidents occurring outside the 
United States, the amount of the indemnity provided by the 
Secretary under this subsection shall not exceed [$100,000,000] 
$500,000,000.

           *       *       *       *       *       *       *

    (e) Limitation on Aggregate Public Liability.--(1) The 
aggregate public liability for a single nuclear incident of 
persons indemnified, including such legal costs as are 
authorized to be paid under subsection o. (1)(D), shall not 
exceed--
          (A) in the case of facilities designed for producing 
        substantial amounts of electricity and having a rated 
        capacity of 100,000 electrical kilowatts or more, the 
        maximum amount of financial protection required of such 
        facilities under subsection b. (plus any surcharge 
        assessed under subsection o. (1)(E));
          (B) in the case of contractors with whom the 
        Secretary has entered into an agreement of 
        indemnification under subsection d., [the maximum 
        amount of financial protection required under 
        subsection b. or] the amount of indemnity and financial 
        protection that may be required under [paragraph (3) of 
        subsection d., whichever amount is more] paragraph (2) 
        of subsection d.; and
          (C) in the case of all licensees of the Commission 
        required to maintain financial protection under this 
        section--
                  (i) $500,000,000, together with the amount of 
                financial protection required of the licensee; 
                or
                  (ii) if the amount of financial protection 
                required of the licensee exceeds $60,000,000, 
                $560,000,000 or the amount of financial 
                protection required of the licensee, whichever 
                amount is more.

           *       *       *       *       *       *       *

    (4) With respect to any nuclear incident occurring outside 
of the United States to which an agreement of indemnification 
entered into under the provisions of subsection d. is 
applicable, such aggregate public liability shall not exceed 
the amount of [$100,000,000] $500,000,000, together with the 
amount of financial protection required of the contractor.

           *       *       *       *       *       *       *

    (k) Exemption From Financial Protection Requirement for 
Nonprofit Educational Institutions.--With respect to any 
license issued pursuant to section 53, 63, 81, 104 a., or 104 
c. for the conduct of educational activities to a person found 
by the Commission to be a nonprofit educational institution, 
the Commission shall exempt such licensee from the financial 
protection requirement of subsection a. With respect to 
[licenses issued between August 30, 1954, and August 1, 2002] 
licenses issued after August 30, 1954, for which the Commission 
grants such exemption:
          (1) the Commission shall agree to indemnify and hold 
        harmless the licensee and other persons indemnified, as 
        their interests may appear, from public liability in 
        excess of $250,000 arising from nuclear incidents. The 
        aggregate indemnity for all persons indemnified in 
        connection with each nuclear incident shall not exceed 
        $500,000,000, including such legal costs of the 
        licensee as are approved by the Commission;
          (2) such contracts of indemnification shall cover 
        public liability arising out of or in connection with 
        the licensed activity; and shall include damage to 
        property of persons indemnified, except property which 
        is located at the site of and used in connection with 
        the activity where the nuclear incident occurs; and
          (3) such contracts of indemnification, when entered 
        into with a licensee having immunity from public 
        liability because it is a State agency, shall provide 
        also that the Commission shall make payments under the 
        contract on account of activities of the licensee in 
        the same manner and to the same extent as the 
        Commission would be required to do if the licensee were 
        not such a State agency.
Any licensee may waive an exemption to which it is entitled 
under this subsection. [With respect to any production or 
utilization facility for which a construction permit is issued 
between August 30, 1954, and August 1, 2002, the requirements 
of this subsection shall apply to any license issued for such 
facility subsequent to August 1, 2002.]

           *       *       *       *       *       *       *

    (p) Reports to Congress.--The Commission and the Secretary 
shall submit to the Congress by [August 1, 1998] August 1, 
2013, detailed reports concerning the need for continuation or 
modification of the provisions of this section, taking into 
account the condition of the nuclear industry, availability of 
private insurance, and the state of knowledge concerning 
nuclear safety at that time, among other relevant factors, and 
shall include recommendations as to the repeal or modification 
of any of the provisions of this section.

           *       *       *       *       *       *       *

    (t) Inflation Adjustment.--(1) The Commission shall adjust 
the amount of the maximum total and annual standard deferred 
premium under subsection b. (1) not less than once during each 
5-year period following [the date of the enactment of the 
Price-Anderson Amendments Act of 1988] July 1, 2003, in 
accordance with the aggregate percentage change in the Consumer 
Price Index since--
          (A) [such date of enactment] July 1, 2003, in the 
        case of the first adjustment under this subsection; or
          (B) the previous adjustment under this subsection.
    (2) The Secretary shall adjust the amount of 
indemnification provided under an agreement of indemnification 
under subsection d. not less than once during each 5-year 
period following July 1, 2003, in accordance with the aggregate 
percentage change in the Consumer Price Index since--
          (A) that date, in the case of the first adjustment 
        under this paragraph; or
          (B) the previous adjustment under this paragraph.
    [(2)] (3) For purposes of this subsection, the term 
``Consumer Price Index'' means the Consumer Price Index for all 
urban consumers published by the Secretary of Labor.

           *       *       *       *       *       *       *

    Sec. 234A. Civil Monetary Penalties for Violations of 
Department of Energy Safety Regulations.--(a) * * *
    (b)(1) The Secretary shall have the power to compromise, 
modify or remit, with or without conditions, such civil 
penalties and to prescribe regulations as he may deem necessary 
to implement this section.
    (2) In determining the amount of any civil penalty under 
this subsection, the Secretary shall take into account the 
nature, circumstances, extent, and gravity of the violation or 
violations and, with respect to the violator, ability to pay, 
effect on ability to continue to do business, any history of 
prior such violations, the degree of culpability, and such 
other matters as justice may require. [In implementing this 
section, the Secretary shall determine by rule whether 
nonprofit educational institutions should receive automatic 
remission of any penalty under this section.]

           *       *       *       *       *       *       *

    [(d) The provisions of this section shall not apply to:
          [(1) The University of Chicago (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Argonne National Laboratory;
          [(2) The University of California (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Los Alamos National Laboratory, 
        Lawrence Livermore National Laboratory, and Lawrence 
        Berkeley National Laboratory;
          [(3) American Telephone and Telegraph Company and its 
        subsidiaries (and any subcontractors or suppliers 
        thereto) for activities associated with Sandia National 
        Laboratories;
          [(4) Universities Research Association, Inc. (and any 
        subcontractors or suppliers thereto) for activities 
        associated with FERMI National Laboratory;
          [(5) Princeton University (and any subcontractors or 
        suppliers thereto) for activities associated with 
        Princeton Plasma Physics Laboratory;
          [(6) The Associated Universities, Inc. (and any 
        subcontractors or suppliers thereto) for activities 
        associated with the Brookhaven National Laboratory; and
          [(7) Battelle Memorial Institute (and any 
        subcontractors or suppliers thereto) for activities 
        associated with Pacific Northwest Laboratory.]
    (d)(1) Notwithstanding subsection (a), in the case of any 
not-for-profit contractor, subcontractor, or supplier, the 
total amount of civil penalties paid under subsection a. may 
not exceed the total amount of fees paid within any one-year 
period (as determined by the Secretary) under the contract 
under which the violation occurs.
    (2) For purposes of this section, the term ``not-for-
profit'' means that no part of the net earnings of the 
contractor, subcontractor, or supplier inures to the benefit of 
any natural person or for-profit artificial person.
                              ----------                              

                        SOLID WASTE DISPOSAL ACT

         Public Law 89-272, as amended (42 U.S.C. 6901 et seq.)

SHORT TITLE AND TABLE OF CONTENTS

           *       *       *       *       *       *       *

                  Subtitle F--Federal Responsibilities

Sec. 6001. Application of Federal, State, and local law to Federal 
          facilities.
Sec. 6002. Federal Procurement.
Sec. 6003. Cooperation with Environmental Protection Agency.
Sec. 6004. Applicability of solid waste disposal guidelines to executive 
          agencies
Sec. 6005. Increased use of recovered mineral component in federally 
          funded projects involving procurement of cement or concrete.

           *       *       *       *       *       *       *

Subtitle F--Federal Responsibilities

           *       *       *       *       *       *       *

SEC. 6005. INCREASED USE OF RECOVERED MINERAL COMPONENT IN FEDERALLY 
                    FUNDED PROJECTS INVOLVING PROCUREMENT OF CEMENT OR 
                    CONCRETE.

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

                      GEOTHERMAL STEAM ACT OF 1970

Public Law 91-581, as amended (30 U.S.C. 1001 et seq.)

           *       *       *       *       *       *       *

    Sec. 4. [If lands to be leased under this chapter are 
within any known geothermal resources area, they shall be 
leased to the highest responsible qualified bidder by 
competitive bidding under regulations formulated by the 
Secretary. If the lands to be leased are not within any known 
geothermal resources area, the qualified person first making 
application for the lease shall be entitled to a lease of such 
lands without competitive bidding. Notwithstanding the 
foregoing, at any time within one hundred and eighty days 
following December 24, 1970:
    [(a) Conversion to geothermal lease with respect to all 
lands which were on September 7, 1965, subject to valid leases 
or permits issued under the Mineral Leasing Act of February 25, 
1920, as amended (30 U.S.C. 181 et seq.), or under the Mineral 
Leasing Act of Acquired Lands, as amended (30 U.S.C. 351, 358), 
or to existing mining claims located on or prior to September 
7, 1965, the lessees or permittees or claimants or their 
successors in interest who are qualified to hold geothermal 
leases shall have the right to convert such leases or permits 
or claims to geothermal leases covering the same lands;
    [(b) Consideration of first person in conflicting land 
interests where there are conflicting claims, leases, or 
permits therefor embracing the same land, the person who first 
was issued a lease or permit, or who first recorded the mining 
claim shall be entitled to first consideration;
    [(c) Conversion to application for geothermal lease with 
respect to all lands which were on September 7, 1965, the 
subject of applications for leases or permits under the above 
Acts, the applicants may convert their applications 
applications for geothermal leases having priorities dating 
from the time of filing of such applications under such Acts;
    [(d) Acreage limitation no person shall be permitted to 
convert mineral leases, permits, applications therefor, or 
mining claims for more than 10,240 acres; and
    [(e) Regulations; substantial expenditures for exploration, 
development, or production of geothermal steam requisite for 
conversion the conversion of leases, permits, and mining claims 
and applications for leases and permits shall be accomplished 
in accordance with regulations prescribed by the Secretary. No 
right to conversion to a geothermal lease shall accrue to any 
person under this section unless such person shows to the 
reasonable satisfaction of the Secretary that substantial 
expenditures for the exploration, development, or production of 
geothermal steam have been made by the applicant who is seeking 
conversion, on the lands for which a lease is sought or on 
adjoining, adjacent, or nearby Federal or non-Federal lands.
    [(f) Competitive geothermal lease; time for payment of 
highest bid and first year rental with respect to lands within 
any known geothermal resources area and which are subject to a 
right to conversion to a geothermal lease, such lands shall be 
leased by competitive bidding: Provided, That, the competitive 
geothermal lease shall be issued to the person owning the right 
to conversion to a geothermal lease if he makes payment of an 
amount equal to the highest bona fide bid for the competitive 
geothermal lease, plus the rental for the first year, within 
thirty days after he receives written notice from the Secretary 
of the amount of the highest bid.]
    (a) Nominations.--The Secretary shall accept nominations at 
any time from companies and individuals of lands to be leased 
under this Act.
    (b) Competitive Lease Sale Required.--The Secretary shall 
hold a competitive lease sale at least once every 2 years for 
lands in a State in which there are nominations pending under 
subsection (a) where such lands are otherwise available for 
leasing.
    (c) Noncompetitive Leasing.--The Secretary shall make 
available for a period of 2 years for noncompetitive leasing 
any tract for which a competitive lease sale is held, but for 
which the Secretary does not receive any bids in the 
competitive lease sale.

           *       *       *       *       *       *       *

    Sec. 5 * * *
    (c) If there is no well on the leased lands capable of 
producing geothermal resources in commercial quantities, the 
failure to pay rental on or before the anniversary date shall 
terminate the lease by operation of law: Provided, however, 
That whenever the Secretary discovers that the rental payment 
due under a lease is paid timely but the amount of the payment 
is deficient because of an error or other reason and the 
deficiency is nominal, as determined by the Secretary pursuant 
to regulations prescribed by him, he shall notify the lessee of 
the deficiency and such lease shall not automatically tenninate 
unless the lessee fails to pay the deficiency within the period 
prescribed in the notice: Provided further, That, where any 
lease has been terminated automatically by operation of law 
under this section for failure to pay rental timely and it is 
shown to the satisfaction of the Secretary of the Interior that 
the failure to pay timely the lease rental was justifiable or 
not due to a lack of reasonable diligence or was inadvertent, 
he in his judgment may reinstate the lease if--
          (1) a petition for reinstatement, together with the 
        required rental, is filed with the Secretary of the 
        Interior; and
           (2) no valid lease has been issued affecting any of 
        the lands in the terminated lease prior to the filing 
        of the petition for reinstatement; and * * *
                              ----------                              --
--------

             HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1974

Public Law 93-383, as amended (42 U.S.C. 5301 et seq.)

           *       *       *       *       *       *       *

    Sec. 105.(a) * * *
          (8) provision of public services, including but not 
        limited to those concerned with employment, crime 
        prevention, child care, health, drug abuse, education, 
        energy conservation or efficiency, welfare or 
        recreation needs, if such services have not been 
        provided by the unit of general local government 
        (through funds raised by such unit, or received by such 
        unit from the State in which it is located) during any 
        part of the twelve month period immediately preceding 
        the date of submission of the statement with respect to 
        which funds are to be made available under this title, 
        and which are to be used for such services, unless the 
        Secretary finds that the discontinuation of such 
        services was the result of events not within the 
        control of the unit of general local government, except 
        that not more than 15 per centum of the amount of any 
        assistance to a unit of general local government (or in 
        the case of nonentitled communities not more than 15 
        per centum statewide) under this title including 
        program income may be used for activities under this 
        paragraph unless such unit of general local government 
        used more than 15 percent of the assistance received 
        under this title for fiscal year 1982 or fiscal year 
        1983 for such activities (excluding any assistance 
        received pursuant to Public Law 98-8), in which case 
        such unit of general local government may use not more 
        than the percentage or amount of such assistance used 
        for such activities for such fiscal year, whichever 
        method of calculation yields the higher amount, except 
        that of any amount of assistance under this title 
        (including program income) in each of fiscal years 1993 
        through 2003 to the City of Los Angeles and County of 
        Los Angeles, each such unit of general government may 
        use not more than 25 percent in each such fiscal year 
        for activities under this paragraph, [and except that] 
        ;except that of any amount of assistance under this 
        title (including program income) in each of fiscal 
        years 1999, 2000, and 2001, to the City of Miami, such 
        city may use not more than 25 percent in each fiscal 
        year for activities under this paragraph; and except 
        that each percentage limitation under this paragraph on 
        the amount of assistance provided under this title that 
        may be used for the provision of public services is 
        hereby increased by 10 percent, but such percentage 
        increase may be used only for the provision of public 
        services concerning energy conservation or efficiency.

           *       *       *       *       *       *       *

                              ----------                              --
--------

                   ENERGY POLICY AND CONSERVATION ACT

         Public Law 94-163, as amended (42 U.S.C. 6201 et seq.)

                            TABLE OF CONTENTS

Sec. 2. Statements of purposes.
Sec. 3. Definitions.

        TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

     * * * * *

         PART D--[EXPIRATION] NORTHEAST HOME HEATING OIL RESERVE

Sec. 181. [Expiration] Establishment.
Sec. 182. Authority.
Sec. 183. Conditions for release; plan.
Sec. 184. Northeast Home Heating Oil Reserve Account
Sec. 185. Exemptions.

                  TITLE II--STANDBY ENERGY AUTHORITIES

     * * * * *

                 [PART C--ENERGY EMERGENCY PREPAREDNESS

Sec. 271. Congressional findings, policy, and purpose.
Sec. 272. Preparation for petroleum supply interruptions.
Sec. 273. Summer fill and fuel budgeting programs.

                           PART D--EXPIRATION

Sec. 281. Expiration]

             PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS

Sec. 273. Summer fill and fuel budgeting programs.

                 TITLE III--IMPROVING ENERGY EFFICIENCY

  PART B--ENERGY CONSERVATION PROGRAM FOR CONSUMER PRODUCTS OTHER THAN 
                               AUTOMOBILES

     * * * * *
Sec. 324. Labeling.
Sec. 324A. Energy Star program.
Sec. 325 Energy conservation standards

TITLE I--MATTERS RELATED TO DOMESTIC SUPPLY AVAILABILITY

           *       *       *       *       *       *       *

PART B--STRATEGIC PETROLEUM RESERVE

           *       *       *       *       *       *       *

                    [AUTHORIZATION OF APPROPRIATIONS

    Sec. 166. There are authorized to be appropriated for 
fiscal year 2000 such sums as may be necessary to implement 
this part, to remain available only through March 31, 2000.]

                    AUTHORIZATION OF APPROPRIATIONS

    Sec. 166. There are authorized to be appropriated to the 
Secretary such sums as may be necessary to carry out this part 
and part D, to remain available until expended.

           *       *       *       *       *       *       *

                      CONDITIONS FOR RELEASE; PLAN

    Sec. 183.  * * *
    (b) Definition.--For purposes of this section a 
``dislocation in the heating oil market'' shall be deemed to 
occur only when--
          (1) The price differential between crude oil, as 
        reflected in an industry daily publication such as 
        ``Platt's Oilgram Price Report'' or ``Oil Daily'' and 
        No. 2 heating oil, as reported in the Energy 
        Information Administration's retail price data for the 
        Northeast, increases [by more tan 60 percent over its 5 
        year rolling average for the months of mid-October 
        through March] by more than 60 percent over its 5-year 
        rolling average for the months of mid-October through 
        March (considered as a heating season average), and 
        continues for 7 consecutive days; and
          (2) The price differential continues to increase 
        during the most recent week for which price information 
        is available.

           *       *       *       *       *       *       *

                    [AUTHORIZATION OF APPROPRIATIONS

    [Sec. 186. There are authorized to be appropriated for 
fiscal year 2001, 2002, and 2003 such sums as may be necessary 
to implement this part.

                          [PART E--EXPIRATION

                              [EXPIRATION

    [Sec. 191. Except as otherwise provided in title I, all 
authority under any provision of title I (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, 2008, but such expiration 
shall not affect any action or pending proceedings, civil or 
criminal, not finally determined on such date, nor any action 
or proceeding based upon any act committed prior to midnight, 
September 30, 2008.]

           *       *       *       *       *       *       *

                  TITLE II--STANDBY ENERGY AUTHORITIES

PART B--AUTHORITIES WITH RESPECT TO INTERNATIONAL ENERGY PROGRAM

           *       *       *       *       *       *       *

   DOMESTIC RENEWABLE ENERGY INDUSTRY AND RELATED SERVICE INDUSTRIES

    Sec. 256. * * *
    [(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 fiscals years 
1993 and 1994, and such sums as may be necessary for fiscal 
year 1995 to carry out the purposes of this subtitle. There are 
authorized to be appropriated for fiscal year 1997 such sums as 
may be necessary to carry out this part. There are authorized 
to be appropriated for fiscal years 2000 through 2003, such 
sums as maybe necessary.]
    (g) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to implement 
this part, to remain available until expended.

            PART C--SUMMER FILL AND FUEL BUDGETING PROGRAMS

SEC. 273. SUMMER FILL AND FUEL BUDGETING PROGRAMS.

    (a) * * *
    [(e) Inapplicability of Expiring Provisions.--Section 281 
does not apply to this section.

                          [PART D--EXPIRATION

    [Sec. 281. Except as otherwise provided in title 11, all 
authority under any provision of title II (other than a 
provision of such title amending another law) and any rule, 
regulation, or order issued pursuant to such authority, shall 
expire at midnight, September 30, 2008, but such expiration 
shall not affect any action or pending proceedings, civil or 
criminal, not finally determined on such date, nor any action 
or proceeding based upon any act committed prior to midnight, 
September 30, 2008.]

           *       *       *       *       *       *       *

TITLE III--IMPROVING ENERGY EFFICIENCY

           *       *       *       *       *       *       *

    Sec. 321. For the purposes of this part:

           *       *       *       *       *       *       *

    (30)(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 
services incandescent lamp[.] but does not include any lamps 
specifically designed to be used for special purpose 
applications, and also does not include any lamp not described 
in subparagraph (D) that is excluded by the Secretary, by rule.

           *       *       *       *       *       *       *

    (32) The term ``battery charger'' means a device that 
charges batteries for consumer products.
    (33) The term ``commercial refrigerator, freezer and 
refrigerator-freezer'' means a refrigerator, freezer or 
refrigerator freezer that--
          (A) is not a consumer product regulated under this 
        Act; and
          (B) incorporates most components involved in the 
        vapor-compression cycle and the refrigerated 
        compartment in a single package.
    (34) The term ``external power supply'' means an external 
power supply circuit that is used to convert household electric 
current into either DC current or lower-voltage AC current to 
operate a consumer product.
    (35) The term ``illuminated exit sign'' means a sign that--
          (A) is designed to be permanently fixed in place to 
        identify an exit; and
          (B) consists of an electrically powered integral 
        light source that illuminates the legend ``EXIT'' and 
        any directional indicators and provides contrast 
        between the legend, any directional indicators, and the 
        background.
    (36)(A) Except as provided in subparagraph (B), the term 
``low-voltage dry-type transformer'' means a transformer that--
          (i) has an input voltage of 600 volts or less;
          (ii) is air-cooled;
          (iii) does not use oil as a coolant; and
          (iv) is rated for operation at a frequency of 60 
        Hertz.
    (B) The term ``low-voltage dry-type transformer'' does not 
include
          (i) transformers with multiple voltage taps, with the 
        highest voltage tap equaling at least 20 percent more 
        than the lowest voltage tap;
          (ii) transformers, such as those commonly known as 
        drive transformers, rectifier transformers, auto-
        transformers, Uninterruptible Power System 
        transformers, impedance transformers, harmonic 
        transformers, regulating transformers, sealed and 
        nonventilating transformers, machine tool transformers, 
        welding transformers, grounding transformers, or 
        testing transformers, that are designed to be used in a 
        special purpose application and are unlikely to be used 
        in general purpose applications; or
          (iii) any transformer not listed in clause (ii) that 
        is excluded by the Secretary by rule because the 
        transformer is designed for a special application and 
        the application of standards to the transformer would 
        not result in significant energy savings.
    (37)(A) Except as provided in subsection (B), the term 
``distribution transformer'' means a transformer that--
          (i) has an input voltage of 34.5 kilovolts or less;
          (ii) has an output voltage of 600 volts or less; and
          (iii) is rated for operation at a frequency of 60 
        Hertz.
    (B) The term ``distribution transformer'' does not 
include--
          (i) transformers with multiple voltage taps, with the 
        highest voltage tap equaling at least 15 percent more 
        than the lowest voltage tap;
          (ii) transformers, such as those commonly known as 
        drive transformers, rectifier transformers, 
        autotransformers, Uninterruptible Power System 
        transformers, impedance transformers, harmonic 
        transformers, regulating transformers, sealed and 
        nonventilating transformers, machine tool transformers, 
        welding transformers, grounding transformers, or 
        testing transformers, that are designed to be used in a 
        special purpose application, and are unlikely to be 
        used in general purpose applications; or
          (iii) any transformer not listed in clause (ii) that 
        is excluded by the Secretary by rule because the 
        transformer is designed for a special application, is 
        unlikely to be used in general purpose applications, 
        and the application of standards to the transformer 
        would not result in significant energy savings.
    (38) The term ``standby mode'' means the lowest amount of 
electric power used by a household appliance when not 
performing its active functions, as defined on an individual 
product basis by the Secretary.
    (39) The term ``torchiere `` means a portable electric lamp 
with a reflector bowl that directs light upward so as to give 
indirect illumination.
    (40) The term ``transformer'' means a device consisting of 
two or more coils of insulated wire that transfers alternating 
current by electromagnetic induction from one coil to another 
to change the original voltage or current value.
    (41) The term ``unit heater'' means a self-contained fan-
type heater designed to be installed within the heated space, 
except that such term does not include a warm air furnace.
    (42) The term ``traffic signal module'' means a standard 8-
inch (200mm) or 12-inch (300mm) traffic signal indication, 
consisting of a light source, a lens, and all other parts 
necessary for operation, that communicates movement messages to 
drivers through red, amber, and green colors.

           *       *       *       *       *       *       *

    Sec. 323.
    (b) Amended and New Procedures.--

           *       *       *       *       *       *       *

    (9) Test procedures for illuminated exit signs shall be 
based on the test method used under Version 2. 0 of the Energy 
Star program of the Environmental Protection Agency for 
illuminated exit signs.
    (10) Test procedures for low voltage dry-type distribution 
transformers shall be based on the `Standard Test Method for 
Measuring the Energy Consumption of Distribution Transformers' 
prescribed by the National Electrical Manufacturers Association 
(NEMA TP 2-1998). The Secretary may review and revise this test 
procedure.
    (11) Test procedures for traffic signal modules shall be 
based on the test method used under the Energy Star program of 
the Environmental Protection Agency for traffic signal modules, 
as in effect on the date of enactment of this paragraph.
    (12) Test procedures for medium base compact fluorescent 
lamps shall be based on the test methods used under the August 
9, 2001 version of the Energy Star program of the Environmental 
Protection Agency and Department of Energy for compact 
fluorescent lamps. Covered products shall meet all test 
requirements for regulated parameters in section 325(bb). 
However, covered products may be marketed prior to completion 
of lamp life and lumen maintenance at 40% of rated life testing 
provided manufacturers document engineering predictions and 
analysis that support expected attainment of lumen maintenance 
at 40% rated life and lamp life time.

           *       *       *       *       *       *       *

    (f) Additional Consumer and Commercial Products.--The 
Secretary shall within 24 months after the date of enactment of 
this subsection prescribe testing requirements for suspended 
ceiling fans, refrigerated bottled or canned beverage vending 
machines, and commercial refrigerators, freezers and 
refrigerator-freezers. Such testing requirements shall be based 
on existing test procedures used in industry to the extent 
practical and reasonable. In the case of suspended ceiling 
fans, such test procedures shall include efficiency at both 
maximum output and at an output no more than 50 percent of the 
maximum output.

           *       *       *       *       *       *       *

    Sec. 324. (a) In General.--
          (2)(F) Not later than 3 months after the date of 
        enactment of this subparagraph, the Commission shall 
        initiate a rulemaking to consider the effectiveness of 
        the current consumer products labeling program in 
        assisting consumers in making purchasing decisions and 
        improving energy efficiency and to consider changes to 
        the labeling rules that would improve the effectiveness 
        of consumer product labels. Such rulemaking shall be 
        completed within 2 years after the date of enactment of 
        this subparagraph.

           *       *       *       *       *       *       *

          (5) The Secretary or the Commission, as appropriate, 
        may for covered products referred to in subsections (u) 
        through (aa) of section 325, prescribe, by rule, 
        pursuant to this section, labeling requirements for 
        such products after a test procedure has been set 
        pursuant to section 323. In the case of products to 
        which TP-1 standards under section 325(y) apply, 
        labeling requirements shall be based on the ``Standard 
        for the Labeling of Distribution Transformer 
        Efficiency'' prescribed by the National Electrical 
        Manufacturers Association (NEMA TP-3) as in effect upon 
        the date of enactment of this Act.

           *       *       *       *       *       *       *

SEC. 324A. ENERGY STAR PROGRAM.

    There is established at the Department of Energy and the 
Environmental Protection Agency a voluntary program to identify 
and promote energy-efficient products and buildings in order to 
reduce energy consumption, improve energy security, and reduce 
pollution through voluntary labeling of or other forms of 
communication about products and buildings that meet the 
highest energy efficiency standards. Responsibilities under the 
program shall be divided between the Department of Energy and 
the Environmental Protection Agency consistent with the terms 
of agreements between the two agencies. The Administrator and 
the Secretary shall--
          (1) promote Energy Star compliant technologies as the 
        preferred technologies in the marketplace for achieving 
        energy efficiency and to reduce pollution;
          (2) work to enhance public awareness of the Energy 
        Star label, including special outreach to small 
        businesses;
          (3) preserve the integrity of the Energy Star label;
          (4) solicit the comments of interested parties in 
        establishing a new Energy Star product category, 
        specifications, or criteria, or in revising a product 
        category, and upon adoption of a new or revised product 
        category, specifications, or criteria, publish a notice 
        of any changes in product categories, specifications or 
        criteria along with an explanation of such changes, 
        and, where appropriate, responses to comments submitted 
        by interested parties; and
          (5) unless waived or reduced by mutual agreement 
        between the Administrator, the Secretary, and the 
        affected parties, provide not less than 12 months lead 
        time prior to implementation of changes in product 
        categories, specifications, or criteria as may be 
        adopted pursuant to this section.

           *       *       *       *       *       *       *

    Sec. 325. * * *
    (u) Standby Mode Electric Energy Consumption.--
          (1) Initial rulemaking.--
                  (A) The Secretary shall, within 18 months 
                after the date of enactment of this subsection, 
                prescribe by notice and comment, definitions of 
                standby mode and test procedures for the 
                standby mode power use of battery chargers and 
                external power supplies. In establishing these 
                test procedures, the Secretary shall consider, 
                among other factors, existing test procedures 
                used for measuring energy consumption in 
                standby mode and assess the current and 
                projected future market for battery chargers 
                and external power supplies. This assessment 
                shall include estimates of the significance of 
                potential energy savings from technical 
                improvements to these products and suggested 
                product classes for standards. Prior to the end 
                of this time period, the Secretary shall hold a 
                scoping workshop to discuss and receive 
                comments on plans for developing energy 
                conservation standards for standby mode energy 
                use for these products.
                  (B) The Secretary shall, within 3 years after 
                the date of enactment of this subsection, issue 
                a final rule that determines whether energy 
                conservation standards shall be promulgated for 
                battery chargers and external power supplies or 
                classes thereof. For each product class, any 
                such standards shall be set at the lowest level 
                of standby energy use that--
                          (i) meets the criteria of subsections 
                        (o), (p), (q), (r), (s) and (t); and
                          (ii) will result in significant 
                        overall annual energy savings, 
                        considering both standby mode and other 
                        operating modes.
          (2) Designation of additional covered products.--
                  (A) Not later than 180 days after the date of 
                enactment of this subsection, the Secretary 
                shall publish for public comment and public 
                hearing a notice to determine whether any non-
                covered products should be designated as 
                covered products for the purpose of instituting 
                a rulemaking under this section to determine 
                whether an energy conservation standard 
                restricting standby mode energy consumption, 
                should be promulgated; except that any 
                restriction on standby mode energy consumption 
                shall be limited to major sources of such 
                consumption.
                  (B) In making the determinations pursuant to 
                subparagraph (A) of whether to designate new 
                covered products and institute rulemakings, the 
                Secretary shall, among other relevant factors 
                and in addition to the criteria in section 
                322(b), consider--
                          (i) standby mode power consumption 
                        compared to overall product energy 
                        consumption; and
                          (ii) the priority and energy savings 
                        potential of standards which may be 
                        promulgated under this subsection 
                        compared to other required rulemakings 
                        under this section and the available 
                        resources of the Department to conduct 
                        such rulemakings.
                  (C) Not later than 1 year after the date of 
                enactment of this subsection, the Secretary 
                shall issue a determination of any new covered 
                products for which he intends to institute 
                rulemakings on standby mode pursuant to this 
                section and he shall state the dates by which 
                he intends to initiate those rulemakings.
          (3) Review of standby energy use in covered 
        products.--In determining pursuant to section 323 
        whether test procedures and energy conservation 
        standards pursuant to this section should be revised, 
        the Secretary shall consider for covered products which 
        are major sources of standby mode energy consumption 
        whether to incorporate standby mode into such test 
        procedures and energy conservation standards, taking 
        into account, among other relevant factors, the 
        criteria for non-covered products in subparagraph (B) 
        of paragraph (2) of this subsection.
          (4) Rulemaking.--
                  (A) Any rulemaking instituted under this 
                subsection or for covered products under this 
                section which restricts standby mode power 
                consumption shall be subject to the criteria 
                and procedures for issuing energy conservation 
                standards set forth in this section and the 
                criteria set forth in subparagraph (B) of 
                paragraph (2) of this subsection.
                  (B) No standard can be proposed for new 
                covered products or covered products in a 
                standby mode unless the Secretary has 
                promulgated applicable test procedures for each 
                product pursuant to section 323.
                  (C) The provisions of section 327 shall apply 
                to new covered products which are subject to 
                the rulemakings for standby mode after a final 
                rule has been issued.
          (5) Effective date.--Any standard promulgated under 
        this subsection shall be applicable to products 
        manufactured or imported 3 years after the date of 
        promulgation.
          (6) Voluntary programs.--The Secretary and the 
        Administrator shall collaborate and develop programs, 
        including programs pursuant to section 324A (relating 
        to Energy Star Programs) and other voluntary industry 
        agreements or codes of conduct, which are designed to 
        reduce standby mode energy use.
    (v) Suspended Ceiling Fans, Vending Machines, and 
Commercial Refrigerators, Freezers and Refrigerator-Freezers.--
The Secretary shall within 36 months after the date on which 
testing requirements are prescribed by the Secretary pursuant 
to section 323(f), prescribe, by rule, energy conservation 
standards for suspended ceiling fans, refrigerated bottled or 
canned beverage vending machines, and commercial refrigerators, 
freezers and refrigerator-freezers. In establishing standards 
under this subsection, the Secretary shall use the criteria and 
procedures contained in subsections (l) and (m). Any standard 
prescribed under this subsection shall apply to products 
manufactured 3 years after the date of publication of a final 
rule establishing such standard.
    (w) Illuminated Exit Signs.--Illuminated exit signs 
manufactured on or after January 1, 2005 shall meet the Version 
2.0 Energy Star Program performance requirements for 
illuminated exit signs prescribed by the Environmental 
Protection Agency.
    (x) Torchieres.--Torchieres manufactured on or after 
January 1, 2005--
          (1) shall consume not more than 190 watts of power; 
        and
          (2) shall not be capable of operating with lamps that 
        total more than 190 watts.
    (y) Distribution Transformers.--The efficiency of low 
voltage dry-type transformers manufactured on or after January 
1, 2005 shall be the Class I Efficiency Levels for distribution 
transformers specified in Table 4-2 of the ``Guide for 
Determining Energy Efficiency for Distribution Transformers'' 
published by the National Electrical Manufacturers Association 
(NEMA TP-1-2002).
    (z) Traffic Signal Modules.--Traffic signal modules 
manufactured on or after January 1, 2006 shall meet the 
performance requirements used under the Energy Star program of 
the Environmental Protection Agency for traffic signals, as in 
effect on the date of enactment of this paragraph, and shall be 
installed with compatible, electrically-connected signal 
control interface devices and conflict monitoring systems.
    (aa) Unit Heaters.--Unit heaters manufactured on or after 
the date that is three years after the date of enactment of the 
Clean and Secure Energy Act shall be equipped with an 
intermittent ignition device and shall have either power 
venting or an automatic flue damper.
    (bb) Medium Base Compact Fluorescent Lamps.--Bare lamp and 
covered lamp (no reflector) medium base compact fluorescent 
lamps manufactured on or after January 1, 2005 shall meet the 
following requirements prescribed by the August 9, 2001 version 
of the Energy Star Program Requirements for CFLs, Energy Star 
Eligibility Criteria, Energy-Efficiency Specification issued by 
the Environmental Protection Agency and Department of Energy: 
minimum initial efficacy; lumen maintenance at 1000 hours; 
lumen maintenance at 40% of rated life; rapid cycle stress 
test; and lamp life. The Secretary may, by rule, establish 
requirements for color quality (CRI); power factor; operating 
frequency; and maximum allowable start time based on the 
requirements prescribed by the August 9, 2001 version of the 
Energy Star Program Requirements for CFLs. The Secretary may, 
by rule, revise these requirements or establish other 
requirements considering energy savings, cost effectiveness, 
and consumer satisfaction.
    (cc) Effective Date.--The provisions of section 327 shall 
apply--
          (1) to products for which standards are to be set 
        pursuant to subsection (v) of this section on the date 
        on which a final rule is issued by the Department of 
        Energy, except that any state or local standards 
        prescribed or enacted for any such product prior to the 
        date on which such final rule is issued shall not be 
        preempted until the standard set pursuant to subsection 
        (v) for that product takes effect; and
          (2) to products for which standards are set in 
        subsections (w) through (bb) of this section on the 
        date of enactment of the Clean and Secure Energy Act, 
        except that any state or local standards prescribed or 
        enacted prior to the date of enactment of the Clean and 
        Secure Energy Act shall not be preempted until the 
        standards set in subsections (w) through (bb) take 
        effect.

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

            PART J--ENCOURAGING THE USE OF ALTERNATIVE FUELS

SEC. 400AA. ALTERNATIVE FUEL USE BY LIGHT DUTY FEDERAL VEHICLES.

    (a) Department of Energy Program.--(1) * * *
    (3)(A) * * *
    [(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.]
    (E)(i) Dual fueled vehicles acquired pursuant to this 
section shall be operated on alternative fuels unless the 
Secretary determines that an agency qualifies for a waiver of 
such requirement for vehicles operated by the agency in a 
particular geographic area where--
          ``(I) the alternative fuel otherwise required to be 
        used in the vehicle is not reasonably available to 
        retail purchasers of the fuel, as certified to the 
        Secretary by the head of the agency; or
          ``(II) the cost of the alternative fuel otherwise 
        required to be used in the vehicle is unreasonably more 
        expensive compared to gasoline, as certified to the 
        Secretary by the head of the agency.
    ``(ii) The Secretary shall monitor compliance with this 
subparagraph by all such fleets and shall report annually to 
the Congress on the extent to which the requirements of this 
subparagraph are being achieved. The report shall include 
information on annual reductions achieved from the use of 
petroleum-based fuels and the problems, if any, encountered in 
acquiring alternative fuels.
                              ----------                              

                 ENERGY CONSERVATION AND PRODUCTION ACT

         Public Law 94-385, as amended (42 U.S.C. 6801 et seq.)

SEC. 305. FEDERAL BUILDING ENERGY EFFICIENCY STANDARDS.

    (a)(1) * * *
    (2) The standards established under paragraph (1) shall--
          (A) contain energy saving and renewable energy 
        specifications that meet or exce ed the energy saving 
        and renewable energy specifications of [CABO Model 
        Energy Code, 1992] the 2000 International Energy 
        Conservation Code (in the case of residential 
        buildings) or ASHRAE Standard 90.1-1989 (in the case of 
        commercial buildings);
    (3) Revised federal building energy efficiency performance 
standards.--
          (A) In general.--Not later than 1 year after the date 
        of enactment of this paragraph, the Secretary of Energy 
        shall establish, by rule, revised Federal building 
        energy efficiency performance standards that require 
        that, if cost effective, for new Federal buildings--
                  (i) such buildings be designed so as to 
                achieve energy consumption levels at least 30 
                percent below those of the most recent version 
                of the International Energy Conservation Code, 
                as appropriate; and
                  (ii) sustainable design principles are 
                applied to the siting, design, and construction 
                of all new and replacement buildings.
        (B) Additional revisions.--Not later than 1 year after 
        the date of approval of amendments to ASHRAE Standard 
        90.1 or the 2000 International Energy Conservation 
        Code, the Secretary of Energy shall determine, based on 
        the cost-effectiveness of the requirements under the 
        amendments, whether the revised standards established 
        under this paragraph should be updated to reflect the 
        amendments.
          (C) Statement on Compliance of New Buildings.--In the 
        budget request of the Federal agency for each fiscal 
        year and each report submitted by the Federal agency 
        under section 548(a) of the National Energy 
        Conservation Policy Act (42 U.S.C. 8258(a)), the head 
        of each Federal agency shall include--
                  (i) a list of all new Federal buildings 
                owned, operated, or controlled by the Federal 
                agency; and
                  (ii) a statement concerning whether the 
                Federal buildings meet or exceed the revised 
                standards established under this paragraph.

           *       *       *       *       *       *       *

                              ----------                              

             ALASKA NATURAL GAS TRANSPORTATION ACT OF 1976

Public Law 94-586, as amended (15 U.S.C. 719 et seq.)

           *       *       *       *       *       *       *

                            JUDICIAL REVIEW

    Sec. 10. * * *
    (c)(1) A claim under subsection (b) shall be barred unless 
a complaint is filed prior to the expiration of such time 
limits in the United States Court of Appeals for the District 
of Columbia acting as a Special Court. Such court shall have 
exclusive jurisdiction to determine such proceeding in 
accordance with the procedures hereinafter provided, and no 
other court of the United States, of any State, territory, or 
possession of the United States, or of the District of 
Columbia, shall have jurisdiction of any such claim in any 
proceeding instituted prior to or on or after the date of 
enactment of this Act.
    (2) The United States Court of Appeals for the District of 
Columbia Circuit shall set any action brought under this 
section for expedited consideration, taking into account the 
national interest described in section 2.

           *       *       *       *       *       *       *

                              ----------                              

                 DEPARTMENT OF ENERGY ORGANIZATION ACT

         Public Law 95-91, as amended (42 U.S.C. 7101 et seq.)

                            TABLE OF CONTENTS

     * * * * * * *

                TITLE II--ESTABLISHMENT OF THE DEPARTMENT

Sec. 201. Establishment.
Sec. 202. Principal officers.
Sec. 203. Assistant Secretaries.
Sec. 204. Federal Energy Regulatory Commission.
Sec. 205. Energy Information Administration.
Sec. 206. Economic Regulatory Administration.
Sec. 207. Comptroller General functions.
Sec. 208. [Repealed].
[Section 209] Sec. 209. Office of Science.
Sec. 210. Leasing Liaison Committee.
Sec. 211. Office of Minority Economic Impact.
[Sec. 212. Repealed P.L. 106-65, Sec. 3294(d)(1), Oct. 5, 1999, 113 
          Stat. 970]
[213] Sec. 213. Establishment of policy for National Nuclear Security 
          Administration.
[214.] Sec. 214. Establishment of security, counterintelligence, and 
          intelligence policies.
[215.] Sec. 215. Office of Counterintelligence.
[216.] Sec. 216. Office of Intelligence.
Sec. 217. Office of Indian Energy Policy and Programs.
Sec. 218. Comprehensive Indian Energy Activities.
218. Office of Electric Transmission and Distribution.
     * * * * * * *

TITLE II--ESTABLISHMENT OF THE DEPARTMENT

           *       *       *       *       *       *       *

                           PRINCIPAL OFFICERS

    Sec. 202. (a) There shall be in the Department a Deputy 
Secretary, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall be 
compensated at the rate provided for level II of the Executive 
Schedule under section 5313 of title 5. The Deputy Secretary 
shall act for and exercise the functions of the Secretary 
during the absence or disability of the Secretary or in the 
event the office of Secretary becomes vacant. The Secretary 
shall designate the order in which the Under Secretary and 
other officials shall act for and perform the functions of the 
Secretary during the absence or disability of both the 
Secretary and Deputy Secretary or in the event of vacancies in 
both of those offices.
    [(b) There shall be in the Department an Under Secretary 
and a General Counsel, who shall be appointed by the President, 
by and with the advice and consent of the Senate, and who shall 
perform such functions and duties as the Secretary shall 
prescribe. The Under Secretary shall bear primary 
responsibility for energy conservation. The Under Secretary 
shall be compensated at the rate provided for level III of the 
Executive Schedule under section 5314 of title 5, and the 
General Counsel shall be compensated at the rate provided for 
level IV of the Executive Schedule under section 5315 of title 
5, United States Code.] (b)(1) There shall be in the Department 
an Under Secretary for Energy and Science, who shall be 
appointed by the President, by and with the advice and consent 
of the Senate. The Under Secretary shall be compensated at the 
rate provided for at level III of the Executive Schedule under 
section 5314 of title 5, United States Code.
    (2) The Under Secretary for Energy and Science shall be 
appointed from among persons who--
          (A) have extensive background in scientific or 
        engineering fields; and
          (B) are well qualified to manage the civilian 
        research and development programs of the Department of 
        Energy.
    (3) The Under Secretary for Energy and Science shall--
          (A) serve as the Science and Technology Advisor to 
        the Secretary;
          (B) monitor the Department's research and development 
        programs in order to advise the Secretary with respect 
        to any undesirable duplication or gaps in such 
        programs;
          (C) advise the Secretary with respect to the well-
        being and management of the multipurpose laboratories 
        under the jurisdiction of the Department;
          (D) advise the Secretary with respect to education 
        and training activities required for effective short- 
        and long-term basic and applied research activities of 
        the Department;
          (E) advise the Secretary with respect to grants and 
        other forms of financial assistance required for 
        effective short- and long-term basic and applied 
        research activities of the Department; and
          (F) exercise authority and responsibility over 
        Assistant Secretaries carrying out energy research and 
        development and energy technology functions under 
        sections 203 and 209, as well as other elements of the 
        Department assigned by the Secretary.
    (c)(1) There shall be in the Department an Under Secretary 
for Nuclear Security, who shall be appointed by the President, 
by and with the advice and consent of the Senate. The Under 
Secretary shall be compensated at the rate provided for at 
level III of the Executive Schedule under section 5314 of title 
5.
    (2) The Under Secretary for Nuclear Security shall be 
appointed from among persons who--
          (A) have extensive background in national security, 
        organizational management, and appropriate technical 
        fields; and
          (B) are well qualified to manage the nuclear weapons, 
        nonproliferation, and materials disposition programs of 
        the National Nuclear Security Administration in a 
        manner that advances and protects the national security 
        of the United States.
    (3) The Under Secretary for Nuclear Security shall serve as 
the Administrator for Nuclear Security under section 2402 of 
title 50. In carrying out the functions of the Administrator, 
the Under Secretary shall be subject to the authority, 
direction, and control of the Secretary. Such authority, 
direction, and control may be delegated only to the Deputy 
Secretary of Energy, without redelegation.
    (d) There shall be in the Department an Under Secretary, 
who shall be appointed by the President, by and with the advice 
and consent of the Senate, and who shall perform such functions 
and duties as the Secretary shall prescribe, consistent with 
this section. The Under Secretary shall be compensated at the 
rate provided for level III of the Executive Schedule under 
section 5314 of title 5, United States Code.
    (e) There shall be in the Department a General Counsel, who 
shall be appointed by the President, by and with the advice and 
consent of the Senate, and who shall perform such functions and 
duties as the Secretary shall prescribe. The General Counsel 
shall be compensated at the rate provided for level IV of the 
Executive Schedule under section 5315 of title 5, United States 
Code.

           *       *       *       *       *       *       *

                         ASSISTANT SECRETARIES

    Sec. 203 (a) [There shall be in the Department six 
Assistant Secretaries] Except as provided in section 209, there 
shall be in the Department seven Assistant Secretaries, each of 
whom shall be appointed by the President, by and with the 
advice and consent of the Senate; who shall be compensated at 
the rate provided for at level IV of the Executive Schedule 
under section 5315 of title 5; and who shall perform, in 
accordance with applicable law, such of the functions 
transferred or delegated to, or vested in, the Secretary as he 
shall prescribe in accordance with the provisions of this 
chapter. The functions which the Secretary shall assign to the 
Assistant Secretaries include, but are not limited to, the 
following:

           *       *       *       *       *       *       *

                           [OFFICE OF SCIENCE

    [Sec. 209. (a) There shall be within the Department an 
Office of Science to be headed by a Director, who shall be 
appointed by the President, by and with the advice and consent 
of the Senate, and who shall be compensated at the rate 
provided for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.
    [(b) It shall be the duty and responsibility of the 
Director--
          [(1) to advise the Secretary with respect to the 
        physical research program transferred to the Department 
        from the Energy Research and Development 
        Administration;
          [(2) to monitor the Department's energy research and 
        development programs in order to advise the Secretary 
        with respect to any undesirable duplication or gaps in 
        such programs;
          [(3) to advise the Secretary with respect to the 
        well-being and management of the multipurpose 
        laboratories under the jurisdiction of the Department, 
        excluding laboratories that constitute part of the 
        nuclear weapons complex;
          [(4) to advise the Secretary with respect to 
        education and training activities required for 
        effective short- and long-term basic and applied 
        research activities of the Department;
          [(5) to advise the Secretary with respect to grants 
        and other forms of financial assistance required for 
        effective short- and long-term basic and applied 
        research activities of the Department; and
          [(6) to carry out such additional duties assigned to 
        the Office by the Secretary relating to basic and 
        applied research, including but not limited to 
        supervision or support of research activities carried 
        out by any of the Assistant Secretaries designated by 
        section 203 of this Act, as the Secretary considers 
        advantageous.]

                           OFFICE OF SCIENCE

    Sec. 209. (a) There shall be within the Department an 
Office of Science, to be headed by an Assistant Secretary for 
Science, who shall be appointed by the President, by and with 
the advice and consent of the Senate, and who shall be 
compensated at the rate provided for level IV of the Executive 
Schedule under section 5315 of title 5, United States Code.
    (b) The Assistant Secretary for Science shall be in 
addition to the Assistant Secretaries provided for under 
section 203 of this Act.
    (c) It shall be the duty and responsibility of the 
Assistant Secretary for Science to carry out the fundamental 
science and engineering research functions of the Department, 
including the responsibility for policy and management of such 
research, as well as other functions vested in the Secretary 
which he may assign to the Assistant Secretary.

           *       *       *       *       *       *       *

              OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

    Sec. 217. (a) Establishment.--There is established within 
the Department an Office of Indian Energy Policy and Programs 
(referred to in this section as the ``Office''. The Office 
shall be headed by a Director, who shall be appointed by the 
Secretary and compensated at a rate equal to that of level IV 
of the Executive Schedule under section 5315 of title 5, United 
States Code.
    (b) Duties of Director.--The Director shall in accordance 
with Federal policies promoting Indian self-determination and 
the purposes of this Act, provide, direct, foster, coordinate, 
and implement energy planning, education, management, 
conservation, and delivery programs of the Department that
          (1) promote Indian tribal energy development, 
        efficiency, and use;
          (2) reduce or stabilize energy costs;
          (3) enhance and strengthen Indian tribal energy and 
        economic infrastructure relating to natural resource 
        development and electrification; and
          (4) electrify Indian tribal land and the homes of 
        tribal members.

                 COMPREHENSIVE INDIAN ENERGY ACTIVITIES

    Sec. 218. (a) Indian Energy Education Planning and 
Management Assistance.--
          (1) The Director shall establish programs within the 
        Office of Indian Energy Policy and Programs to assist 
        Indian tribes in meeting energy education, research and 
        development, planning, and management needs.
          (2) In carrying out this section, the Director may 
        provide grants, on a competitive basis, to an Indian 
        tribe or tribal consortium for use in carrying out
                  (A) energy, energy efficiency, and energy 
                conservation programs;
                  (B) studies and other activities supporting 
                tribal acquisition of energy supplies, 
                services, and facilities;
                  (C) planning, construction, development, 
                operation, maintenance, and improvement of 
                tribal electrical generation, transmission, and 
                distribution facilities located on Indian land; 
                and
          (D) development, construction, and interconnection of 
        electric power transmission facilities located on 
        Indian land with other electric transmission 
        facilities.
          (3)(A) The Director may develop, in consultation with 
        Indian tribes, a formula for providing grants under 
        this section.
          (B) In providing a grant under this subsection, the 
        Director shall give priority to an application received 
        from an Indian tribe with inadequate electric service 
        (as determined by the Director).
          (4) The Secretary may promulgate such regulations as 
        the Secretary determines are necessary to carry out 
        this subsection.
          (5) There is authorized to be appropriated to carry 
        out this section $20,000,000 for each of fiscal years 
        2004 through 2011.
    (b) Loan Guarantee Program.--
          (1) Subject to paragraph (3), the Secretary may 
        provide loan guarantees (as defined in section 502 of 
        the Federal Credit Reform Act of 1990 (2 U.S. C. 661 
        a)) for not more than 90 percent of the unpaid 
        principal and interest due on any loan made to any 
        Indian tribe for energy development.
          (2) A loan guaranteed under this subsection shall be 
        made by--
                  (A) a financial institution subject to 
                examination by the Secretary; or
                  (B) an Indian tribe, from funds of the Indian 
                tribe.
          (3) The aggregate outstanding amount guaranteed by 
        the Secretary at any time under this subsection shall 
        not exceed $2,000,000,000.
          (4) The Secretary may promulgate such regulations as 
        the Secretary determines are necessary to carry out 
        this subsection.
          (5) There are authorized to be appropriated such sums 
        as are necessary to carry out this subsection, to 
        remain available until expended.
          (6) Not later than 1 year from the date of enactment 
        of this section, the Secretary shall report to the 
        Congress on the financing requirements of Indian tribes 
        for energy development on Indian land.
    (c) Indian Energy Preference.--
          (1) In purchasing electricity or any other energy 
        product or byproduct, a Federal agency or department 
        may give preference to an energy and resource 
        production enterprise, partnership, consortium, 
        corporation, or other type of business organization the 
        majority of the interest in which is owned and 
        controlled by 1 or more Indian tribes.
          (2) In carrying out this subsection, a Federal agency 
        or department shall not--
                  (A) pay more than the prevailing market price 
                for an energy product or byproduct; and
                  (B) obtain less than prevailing market terms 
                and conditions.

           OFFICE OF ELECTRIC TRANSMISSION AND DISTRIBUTION.

    Sec. 218. (a) There is established within the Department an 
Office of Electric Transmission and Distribution. This Office 
shall beheaded by a Director, who shall be appointed by the 
Secretary. The Director shall be compensated at the annual rate 
prescribed for level IV of the Executive Schedule under section 
5315 of title 5, United States Code.
    (b) The Director shall--
          (1) coordinate and develop a comprehensive, multi 
        year strategy to improve the Nation's electricity 
        transmission and distribution;
          (2) ensure that the recommendations of the 
        Secretary's National Transmission Grid Study are 
        implemented;
          (3) carry out the research, development, and 
        demonstration functions;
          (4) grant authorizations for electricity import and 
        export;
          (5) perform other electricity transmission and 
        distribution-related functions assigned by the 
        Secretary; and
          (6) develop programs for workforce training in power 
        and transmission engineering.

           *       *       *       *       *       *       *

                               CONTRACTS

    Sec. 646.

           *       *       *       *       *       *       *

    (f) To the extent provided in advance in appropriations 
Acts, the Secretary may retain and use money rentals received 
by the Secretary directly from a lease entered into under 
subsection (c) of this section in any amount the Secretary 
considers necessary to cover the administrative expenses of the 
lease, the maintenance and repair of the leased property, or 
environmental restoration activities at the facility where the 
leased property is located. Amounts retained under this 
subsection shall be retained in a separate fund established in 
the Treasury for such purpose. The Secretary shall annually 
submit to the Congress a report on amounts retained and amounts 
used under this subsection.
    (g)(1) In addition to other authorities granted to the 
Secretary under law, the Secretary may enter into other 
transactions on such terms as the Secretary may deem 
appropriate in furtherance of research, development, or 
demonstration functions vested in the Secretary. Such other 
transactions shall not be subject to the provisions of section 
9 of the Federal Nonnuclear Energy Research and Development Act 
of 1974 (42 US.C. 5908).
    (2)(A) The Secretary shall ensure that--
          (i) to the maximum extent the Secretary determines 
        practicable, no transaction entered into under 
        paragraph (1) provides for research, development, or 
        demonstration that duplicates research, development, or 
        demonstration being conducted under existing projects 
        carried out by the Department; and
          (ii) To the extent the Secretary determines 
        practicable, the funds provided by the Government under 
        a transaction authorized by paragraph (1) do not exceed 
        the total amount provided by other parties to the 
        transaction.
          (iii) To the extent the Secretary determines 
        practicable, competitive, merit-based selection 
        procedures shall be used when entering into 
        transactions under paragraph (1).
    (B) A transaction authorized by paragraph (1) may be used 
for a research, development, or demonstration project only if 
the Secretary determines the use of a standard contract, grant, 
or cooperative agreement for the project is not feasible or 
appropriate.
    (3)(A) The Secretary shall protect from disclosure, 
including disclosure under section 552 of title 5, United 
States Code, for up to 5 years after the date the information 
is received by the Secretary
          (i) a proposal, proposal abstract, and supporting 
        documents submitted to the Department in a competitive 
        or noncompetitive process having the potential for 
        resulting in an award to the party submitting the 
        information entering into a transaction under paragraph 
        (1); and
          (ii) a business plan and technical information 
        relating to a transaction authorized by paragraph (1) 
        submitted to the Department as confidential business 
        information.
    (B) The Secretary may protect from disclosure, for up to 5 
years after the information was developed, any information 
developed pursuant to a transaction under paragraph (1) which 
developed information is of a character that it would be 
protected from disclosure under section 552(b)(4) of title 5, 
United States Code, if obtained from a person other than a 
Federal agency.
    (4) Not later than 90 days after the date of enactment of 
this section, the Secretary shall prescribe guidelines for 
using other transactions authorized by the amendment under 
subsection (a). Such guidelines shall be published in the 
Federal Register for public comment under rulemaking procedures 
of the Department.
    (5) The authority of the Secretary under this subsection 
may be delegated only to an officer of the Department who is 
appointed by the President by and with the advice and consent 
of the Senate and may not be delegated to any other person.
                              ----------                              

             PUBLIC UTILITY REGULATORY POLICIES ACT OF 1978

Public Law 95-617, as amended (16 U.S.C. 2601 et seq.)

           *       *       *       *       *       *       *

SEC. 111. CONSIDERATION AND DETERMINATION RESPECTING CERTAIN RATEMAKING 
                    STANDARDS.

           *       *       *       *       *       *       *

    (d) Establishment.--The following Federal standards are 
hereby established:

           *       *       *       *       *       *       *

          (11) Net Metering.--
                  (A) Each electric utility shall make 
                available upon request net metering service to 
                any electric consumer that the electric utility 
                serves.
                  (B) For purposes of implementing this 
                paragraph, any reference contained in this 
                section to the date of enactment of the Public 
                Utility Regulatory Policies Act of 1978 shall 
                be deemed to be a reference to the date of 
                enactment of this paragraph.
                  (C) Notwithstanding subsections (b) and (c) 
                of section 112, each State regulatory authority 
                shall consider and make a determination 
                concerning whether it is appropriate to 
                implement the standard set out in subparagraph 
                (A) not later than 1 year after the date of 
                enactment of this paragraph.
          (12) Time-Based Metering and Communications.--
                  (A) Each electric utility shall offer each of 
                its customer classes, and provide individual 
                customers upon customer request, a time-based 
                rate schedule under which the rate charged by 
                the electric utility varies during different 
                time periods and reflects the variance in the 
                costs of generating and purchasing electricity 
                at the wholesale level. The time-based rate 
                schedule shall enable the electric consumer to 
                manage energy use and cost through advanced 
                metering and communications technology.
                  (B) The types of time-based rate schedules 
                that may be offered under the schedule referred 
                to in subparagraph (A) include, among others--
                          (i) time-of-use pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advance or 
                        forward basis, typically not changing 
                        more often than twice a year. Prices 
                        paid for energy consumed during these 
                        periods shall be pre-established and 
                        known to consumers in advance of such 
                        consumption, allowing them to vary 
                        their demand and usage in response to 
                        such prices and manage their energy 
                        costs by shifting usage to a lower cost 
                        period or reducing their consumption 
                        overall;
                          (ii) critical peak pricing whereby 
                        time-of-use prices are in effect except 
                        for certain peak days, when prices may 
                        reflect the costs of generating and 
                        purchasing electricity at the wholesale 
                        level and when consumers may receive 
                        additional discounts for reducing peak 
                        period energy consumption; and
                          (iii) real-time pricing whereby 
                        electricity prices are set for a 
                        specific time period on an advanced or 
                        forward basis and may change as often 
                        as hourly.
                  (C) Each electric utility subject to 
                subparagraph (A) shall provide each customer 
                requesting a time-based rate with a time-based 
                meter capable of enabling the utility and 
                customer to offer and receive such rate, 
                respectively.
                  (D) For purposes of implementing this 
                paragraph, any reference contained in this 
                section to the date of enactment of the Public 
                Utility Regulatory Policies Act of 1978 shall 
                be deemed to be a reference to the date of 
                enactment of this paragraph.
                  (E) In a State that permits third party 
                marketers to sell electric energy to retail 
                electric consumers, such consumers shall be 
                entitled to receive that same time-based 
                metering and communications device and service 
                as a retail electric consumer of the electric 
                utility.
                  (F) Notwithstanding subsections (b) and (c) 
                of section 112, each State regulatory authority 
                shall, not later than twelve (12) months after 
                enactment of this paragraph conduct an 
                investigation in accordance with section 115(i) 
                and issue a decision whether it is appropriate 
                to implement the standards set out in 
                subparagraphs (A) and (C).

           *       *       *       *       *       *       *

SEC. 113. ADOPTION OF CERTAIN STANDARDS.

    (a) * * *
    (b) Establishment.--The following Federal standards are 
hereby established:

           *       *       *       *       *       *       *

          (6) Each electric utility shall provide distributed 
        generation, combined heat and power, and district 
        heating and cooling systems competitive access to the 
        local distribution grid and competitive pricing of 
        service, and shall use simplified standard contracts 
        for the interconnection of generating facilities that 
        have a power production capacity of 250 kilowatts or 
        less.
          (7) No electric utility may refuse to interconnect a 
        generating facility with the distribution facilities of 
        the electric utility if the owner or operator of the 
        generating facility complies with technical standards 
        adopted by the State regulatory authority and agrees to 
        pay the costs established by such State regulatory 
        authority.
          (8) Each electric utility shall develop a plan to 
        minimize dependence on one fuel source and to ensure 
        that the electric energy it sells to consumers is 
        generated using a diverse range of fuels and 
        technologies, including renewable technologies.
          (9) Each electric utility shall develop and implement 
        a ten-year plan to increase the efficiency of its 
        fossil fuel generation.
    (c) * * *
    (d) Special Rule.--For purposes of implementing paragraphs 
(6), (7), (8), and (9) of subsection (b), 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 subsection.

           *       *       *       *       *       *       *

SEC. 115. SPECIAL RULES FOR STANDARDS.

           *       *       *       *       *       *       *

    (i) Net Metering.--In undertaking the consideration and 
making the determination under section 111 with respect to the 
standard concerning net metering established by section III 
(d)(13), the term net metering service shall mean a service 
provided in accordance with the following standards:
          (1) An electric utility--
                  (A) shall charge the owner or operator of an 
                on-site generating facility rates and charges 
                that are identical to those that would be 
                charged other electric consumers of the 
                electric utility in the same rate class; and
                  (B) shall not charge the owner or operator of 
                an on-site generating facility any additional 
                standby, capacity, interconnection, or other 
                rate or charge.
          (2) An electric utility that sells electric energy to 
        the owner or operator of an on-site generating facility 
        shall measure the quantity of electric energy produced 
        by the on-site facility and the quantity of electric 
        energy consumed by the owner or operator of an on-site 
        generating facility during a billing period in 
        accordance with reasonable metering practices.
          (3) If the quantity of electric energy sold by the 
        electric utility to an on-site generating facility 
        exceeds the quantity of electric energy supplied by the 
        on-site generating facility to the electric utility 
        during the billing period, the electric utility may 
        bill the owner or operator for the net quantity of 
        electric energy sold, in accordance with reasonable 
        metering practices.
          (4) If the quantity of electric energy supplied by 
        the on-site generating facility to the electric utility 
        exceeds the quantity of electric energy sold by the 
        electric utility to the on-site generating facility 
        during the billing period--
                  (A) the electric utility may bill the owner 
                or operator of the on-site generating facility 
                for the appropriate charges for the billing 
                period in accordance with paragraph (2); and
                  (B) the owner or operator of the on-site 
                generating facility shall be credited for the 
                excess kilowatt-hours generated during the 
                billing period, with the kilowatt-hour credit 
                appearing on the bill for the following billing 
                period--
          (5) An eligible on-site generating facility and net 
        metering system used by an electric consumer shall meet 
        all applicable safety, performance, reliability, and 
        interconnection standards established by the National 
        Electrical Code, the Institute of Electrical and 
        Electronics Engineers, and Underwriters Laboratories.
          (6) The Commission, after consultation with State 
        regulatory authorities and unregulated electric 
        utilities and after notice and opportunity for comment, 
        may adopt, by rule, additional control and testing 
        requirements for on-site generating facilities and net 
        metering systems that the Commission determines are 
        necessary to protect public safety and system 
        reliability.
          (7) For purposes of this subsection--
                  (A) The term ``eligible on-site generating 
                facility'' means a facility on the site of a 
                residential electric consumer with a maximum 
                generating capacity of 10 kilowatts or less 
                that is fueled by solar energy, wind energy, or 
                fuel cells; or a facility on the site of a 
                commercial electric consumer with a maximum 
                generating capacity of 500 kilowatts or less 
                that is fueled solely by a renewable energy 
                resource, landfill gas, or a high-efficiency 
                system.
                  (B) The term ``renewable energy resource'' 
                means solar, wind, biomass, or geothermal 
                energy.
                  (C) The term ``high-efficiency system `` 
                means fuel cells or combined heat and power.
                  (D) The term ``net metering service'' means 
                service to an electric consumer under which 
                electric energy generated by that electric 
                consumer from an eligible on-site generating 
                facility and delivered to the local 
                distribution facilities may be used to offset 
                electric energy provided by the electric 
                utility to the electric consumer during the 
                applicable billing period.
    (k) Time-Based Metering and Communications.--Each State 
regulatory authority shall conduct an investigation and issue a 
decision whether or not it is appropriate for electric 
utilities to provide and install time-based meters and 
communications devices for each of their customers which enable 
such customers to participate in time-based pricing rate 
schedules and other demand response programs.

           *       *       *       *       *       *       *

SEC. 132. RESPONSIBILITIES OF THE SECRETARY OF ENERGY.

    (a) Authority.--The Secretary may periodically notify the 
State regulatory authorities, and electric utilities identified 
pursuant to section 102(c)--
          (1) load management techniques and the results of 
        studies and experiments concerning load management 
        techniques;
          (2) developments and innovations in electric utility 
        rate making throughout the United States, including the 
        results of studies and experiments in rate structuring 
        and rate reform;
          (3) methods for determining cost of service; [and]
          (4) any other data or information which the Secretary 
        determines would assist such authorities and utilities 
        in carrying out the provisions of this title[.] ; and
          (5) technologies, techniques and rate-making methods 
        related to advanced metering and communications and the 
        use of these technologies, techniques and methods in 
        demand response programs.

           *       *       *       *       *       *       *

    [(c) Appropriations.--There are authorized to be 
appropriated to carry out the purposes of subsection (b) not to 
exceed $1,000,000 for each of the fiscal years 1979 and 1980.]
    (c) Technical Assistance for Certain Responsibilities.--The 
Secretary may provide such technical assistance as determined 
appropriate to assist State regulatory authorities and electric 
utilities in carrying out their responsibilities under section 
111(d)(11) and paragraphs (6), (7), (8), and (9) of section 
113(b).
    (d) Demand Response.--The Secretary shall be responsible 
for--
          (1) educating consumers on the availability, 
        advantages and benefits of advanced metering and 
        communications technologies, including the funding of 
        demonstration or pilot projects;
          (2) working with States, utilities, other energy 
        providers and advanced metering and communications 
        experts to identify and address barriers to the 
        adoption of demand response programs; and
          (3) not later than 180 days after the date of 
        enactment of the Energy Policy Act of 2003, providing 
        the Congress with a report that identifies and 
        quantifies the national benefits of demand response and 
        makes a recommendation on achieving specific levels of 
        such benefits by January 1, 2005.

           *       *       *       *       *       *       *

SEC. 210. COGENERATION AND SMALL, POWER PRODUCTION.

           *       *       *       *       *       *       *

    (m) Termination of Mandatory Purchase and Sale 
Requirements.--
          (1) Obligation to purchase.--After the date of 
        enactment of this subsection, no electric utility shall 
        be required to enter into a new contract or obligation 
        to purchase electric energy from a qualifying 
        cogeneration facility or a qualifying small power 
        production facility under this section if the 
        Commission finds that the qualifying cogeneration 
        facility or qualifying small power production facility 
        has access to an independently administered, auction-
        based day ahead and real time wholesale market for the 
        sale of electric energy.
          (2) Obligation to sell.--After the date of enactment 
        of this subsection, no electric utility shall be 
        required to enter into a new contract or obligation to 
        sell electric energy to a qualifying cogeneration 
        facility or a qualifying small power production 
        facility under this section if competing retail 
        electric suppliers are able to provide electric energy 
        to the qualifying cogeneration facility or qualifying 
        small power production facility.
          (3) No effect on existing rights and remedies.--
        Nothing in this subsection affects the rights or 
        remedies of any party under any contract or obligation 
        in effect on the date of enactment of this subsection, 
        to purchase electric energy or capacity from or to sell 
        electric energy or capacity to a facility under this 
        Act (including the right to recover costs of purchasing 
        electric energy or capacity).
          (4) Recovery of costs.--
                  (A) Regulation.--The Commission shall 
                promulgate such regulations as are necessary to 
                ensure that an electric utility that purchases 
                electric energy or capacity from a qualifying 
                cogeneration facility or qualifying small power 
                production facility in accordance with any 
                legally enforceable obligation entered into or 
                imposed under this section before the date of 
                enactment of this subsection recovers all 
                prudently incurred costs associated with the 
                purchase.
                  (B) Enforcement.--A regulation under 
                subparagraph (A) shall be enforceable in 
                accordance with the provisions of law 
                applicable to enforcement of regulations under 
                the Federal Power Act (16 U. S. C. 791a et 
                seq.).

           *       *       *       *       *       *       *

                              ----------                              

                NATIONAL ENERGY CONSERVATION POLICY ACT

         Public Law 95-619 as amended (42 U.S.C. 8201 et seq.)

                      TITLE I--GENERAL PROVISIONS

SEC. 101. SHORT TITLE AND TABLE OF CONTENTS.

           *       *       *       *       *       *       *

PART 3--FEDERAL ENERGY MANAGEMENT

           *       *       *       *       *       *       *

Sec. 551 Definitions.
Sec. 552. Federal procurement of energy efficient products
Sec. 553. Energy and water savings measures in congressional buildings.
     * * * * * * *

SEC. 251. ENERGY-CONSERVING IMPROVEMENTS FOR ASSISTED HOUSING.

    (a) * * *
    (b) Grants.--(1) The Secretary of Housing and Urban 
Development is authorized to make grants to finance energy 
conserving improvements (as defined in subparagraph (2) of the 
last paragraph of section 2(A) of the National Housing Act) to 
projects which are [financed with loans] assisted under section 
202 of the Housing Act of 1959, which are eligible multifamily 
housing projects (as such term is defined in section 512 of the 
Multi-family Assisted Housing Reform and Affordability Act of 
1997 (42 U.S.C. 1437f note)) and are subject to mortgage 
restructuring and rental assistance sufficiency plans under 
such Act, or which are subject to mortgages insured under 
section 221(d)(3) or section 236 of the National Housing Act. 
Such improvements may also include the installation of energy 
and water conserving fixtures and fittings that conform to the 
American Society of Mechanical Engineers/American National 
Standards Institute standards A112.19.2-1998 and A112.18.1-
2000, or any revision thereto, applicable at the time of 
installation. The Secretary shall make assistance available 
under this subsection on a priority basis to those projects 
which are in financial difficulty as a result of high energy 
costs.

           *       *       *       *       *       *       *

SEC. 543. ENERGY MANAGEMENT REQUIREMENTS.

    (a) Energy Performance Requirements for Federal 
Buildings.--(1) Subject to paragraph (2), each agency shall 
apply energy conservation measures to, and shall improve the 
design for the construction of, [its Federal buildings so that 
the energy consumption per gross square foot of its Federal 
buildings in use during the fiscal year 1995 is at least 10 
percent less than the energy consumption per gross square foot 
of its Federal buildings in use during the fiscal year 1985 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.] the Federal buildings of the agency (including each 
industrial or laboratory facility) so that the energy 
consumption per gross square foot of the Federal buildings of 
the agency in fiscal years 2004 through 2013 is reduced, as 
compared with the energy consumption per gross square foot of 
the Federal buildings of the agency in fiscal year 2000, by the 
percentage specified in the following table:
Fiscal Year                                         Percentage reduction
    2004......................................................         2
    2005......................................................         4
    2006......................................................         6
    2007......................................................         8
    2008......................................................        10
    2009......................................................        12
    2010......................................................        14
    2011......................................................        16
    2012......................................................        18
20.013......................................................

           *       *       *       *       *       *       *

    (3) Not later than December 31, 2011, the Secretary shall 
review the results of the implementation of the energy 
performance requirement established under paragraph (1) and 
submit to Congress recommendations concerning energy 
performance requirements for fiscal years 2014 through 2022.

           *       *       *       *       *       *       *

    (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.]
          (A) An agency may exclude, from the energy 
        performance requirement for a fiscal year established 
        under subsection (a) and the energy management 
        requirement established under subsection (b), any 
        Federal building or collection of Federal buildings, if 
        the head of the agency finds that--
                  (i) compliance with those requirements would 
                be impracticable;
                  (ii) the agency has completed and submitted 
                all federally required energy management 
                reports;
                  (iii) the agency has achieved compliance with 
                the energy efficiency requirements of this Act, 
                the Energy Policy Act of 1992, Executive 
                Orders, and other Federal law; and
                  (iv) the agency has implemented all 
                practicable, life-cycle cost-effective projects 
                with respect to the Federal building or 
                collection of Federal buildings to be excluded.
          (B) A finding of impracticability under subparagraph 
        (A)(i) shall be based on--
                  (i) the energy intensiveness of activities 
                carried out in the Federal building or 
                collection of Federal buildings; or
                  (ii) the fact that the Federal building or 
                collection of Federal buildings is used in the 
                performance of a national security function.
    (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] standards 
for exclusion set forth in paragraph (1), and may within 90 
days after receipt of the findings, reverse [a finding of 
impracticability] the exclusion. In the case of any such 
reversal, the agency shall comply with the energy consumption 
requirements for the building concerned.
    (3) Not later than 180 days after the date of enactment of 
this paragraph, the Secretary shall issue guidelines that 
establish criteria for exclusions under paragraph (1).

           *       *       *       *       *       *       *

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

           *       *       *       *       *       *       *

SEC. 546. INCENTIVES FOR AGENCIES.

           *       *       *       *       *       *       *

    (c) Utility Incentive Programs.--
          [(l) 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.]
          (1) Agencies are authorized and encouraged to 
        participate in programs, including utility energy 
        services contracts, conducted by gas, water and 
        electric utilities and generally available to customers 
        of such utilities, for the purposes of increased energy 
        efficiency, water conservation or the management of 
        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] facilities, equipment and 
        vehicles utilized by such agency.

           *       *       *       *       *       *       *

    (e) Retention of Energy Savings.--An agency may retain any 
funds appropriated to that agency for energy expenditures, at 
buildings subject to the requirements of section 543(a) and 
(b), that are not made because of energy savings. Except as 
otherwise provided by law, such funds may be used only for 
energy efficiency of unconventional and renewable energy 
resources projects.

           *       *       *       *       *       *       *

SEC. 548. REPORTS.

    (a) * * *
    (b) Reports to the President and Congress.--The Secretary 
shall report, not later than April 2 of each year, with respect 
to each fiscal year beginning after the date of the enactment 
of this subsection, to the President and Congress--

           *       *       *       *       *       *       *

SEC. 550. SURVEY OF ENERGY SAVING POTENTIAL.

           *       *       *       *       *       *       *

    (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))] each of the energy reduction goals 
established under section 543(a).

           *       *       *       *       *       *       *

SEC. 552. FEDERAL PROCUREMENT OF ENERGY EFFICIENT PRODUCTS.

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

SEC. 553. CONGRESSIONAL BUILDING EFFICIENCY.

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

           *       *       *       *       *       *       *

SEC. 801. AUTHORITY TO ENTER INTO CONTRACTS.

    (a) * * *
    (3)(A) In the case of an energy savings contract or energy 
savings performance contract providing for energy savings 
through the construction and operation of one or more buildings 
or facilities to replace one or more existing buildings or 
facilities, benefits ancillary to the purpose of such contract 
under paragraph (1) may include savings resulting from reduced 
life-cycle costs of operation and maintenance at such 
replacement buildings or facilities when compared with costs of 
operation and maintenance at the buildings or facilities being 
replaced, established through a methodology set forth in the 
contract.
    (B) Notwithstanding paragraph (2)(B), aggregate annual 
payments by an agency under an energy savings contract or 
energy savings performance contract referred to in subparagraph 
(A) may take into account (through the procedures developed 
pursuant to this section) savings resulting from reduced costs 
of operation and maintenance as described in that subparagraph.

           *       *       *       *       *       *       *

    [(c) Sunset and Reporting Requirements.--The authority to 
enter into new contracts under this section shall cease to be 
effective on October 1, 2003.]

           *       *       *       *       *       *       *

SEC. 804. DEFINITIONS.

           *       *       *       *       *       *       *

    [(2) The term ``energy savings'' means a reduction in the 
cost of energy, from a base cost established through a 
methodology set forth in the contract, utilized in an existing 
federally owned building or buildings or other federally owned 
facilities as a result of--
          (A) the lease or purchase of operating equipment, 
        improvements, altered operation and maintenance, or 
        technical services; or
          (B) the increased efficient use of existing energy 
        sources by cogeneration or heat recovery, excluding any 
        cogeneration process for other than a federally owned 
        building or buildings or other federally owned 
        facilities.]
    (2) The term ``energy savings `` means--
          (A) a reduction in the cost of energy or water, from 
        a base cost established through a methodology set forth 
        in the contract, used in an existing federally owned 
        building or buildings or other federally owned 
        facilities as a result of--
                  (i) the lease or purchase of operating 
                equipment, improvements, altered operation and 
                maintenance, or technical services;
                  (ii) the increased efficient use of existing 
                energy sources by co-generation or heat 
                recovery, excluding any co-generation process 
                for other than a federally owned building or 
                buildings or other federally owned facilities; 
                or
                  (iii) the increased efficient use of existing 
                water sources; or
          (B) in the case of a replacement building or facility 
        described in section 801(a)(3), a reduction in the cost 
        of energy, from a base cost established through a 
        methodology set forth in the contract, that would 
        otherwise be utilized in one or more existing federally 
        owned buildings or other federally owned facilities by 
        reason of the construction and operation of the 
        replacement building or facility.
    [(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).]
    (3) The terms ``energy savings contract'' and ``energy 
savings performance contract'' mean a contract which provides 
for--
          (A) the performance of services for the design, 
        acquisition, installation, testing, and, where 
        appropriate, operation, maintenance and repair, of an 
        identified energy or water conservation measure or 
        series of measures at one or more locations; or
          (B) energy savings through the construction and 
        operation of one or more buildings or facilities to 
        replace one or more existing buildings or facilities. 
        Such contracts shall, with respect to an agency 
        facility that is a public building as such term is 
        defined in section 13(1) of the Public Buildings Act of 
        1959 (40 U.S.C. 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).
    [(4) The term ``energy conservation measures'' has the 
meaning given such term in section 551(4).]
    (4) The term ``energy or water conservation measure'' 
means--
          (A) an energy conservation measure, as defined in 
        section 551(4) (42 U.S.C. 8259(4)); or
          (B) a water conservation measure that improves water 
        efficiency, is life-cycle cost-effective, and involves 
        water conservation, water recycling or reuse, more 
        efficient treatment of wastewater or stormwater, 
        improvements in operation or maintenance efficiencies, 
        retrofit activities, or other related activities, not 
        at a Federal hydroelectric facility. '
                              ----------                              

         DEPARTMENT OF ENERGY SCIENCE EDUCATION ENHANCEMENT ACT

Part E of Title XXXI of Public Law 101-510, as amended (42 U.S.C. 7381-
7381e)

           *       *       *       *       *       *       *

SEC. 3164. SCIENCE EDUCATION PROGRAMS

    (a) Programs.--The Secretary is authorized to establish 
programs to enhance the quality of mathematics, science, and 
engineering education. Any such programs shall be operated at 
or through the support of Department research and development 
facilities, shall use the scientific resources of the 
Department, and shall be consistent with the overall Federal 
plan for education and human resources in science and 
technology developed by the Federal Coordinating Council for 
Science, Engineering, and Technology.
    (b) Relationship to Other Department Activities.--The 
programs described in subsection (a) shall supplement and be 
coordinated with current activities of the Department, but 
shall not supplant them.
    (c) Programs for Students From Under-Represented Groups.--
In carrying out a program under subsection (a), the Secretary 
shall give priority to activities that are designed to 
encourage students from under-represented groups to pursue 
scientific and technical careers.

SEC. 3165. LABORATORY COOPERATIVE SCIENCE CENTERS AND OTHER AUTHORIZED 
                    EDUCATION ACTIVITIES

           *       *       *       *       *       *       *

    (13) Establish a prefreshman enrichment program in which 
middle-school students attend summer workshops on mathematics, 
science, and engineering conducted by universities on their 
campuses.
    (14) Support competitive events for students, under 
supervision of teachers, designed to encourage student interest 
and knowledge in science and mathematics.

           *       *       *       *       *       *       *

SEC. 3167. PARTNERSHIPS WITH HISTORICALLY BLACK COLLEGES AND 
                    UNIVERSITIES, HISPANIC-SERVING INSTITUTIONS, AND 
                    TRIBAL COLLEGES.

    (a) Definitions.--In this section:
          (1) Hispanic-serving institution.--The term 
        ``Hispanic-serving institution'' has the meaning given 
        that term in section 502(a) of the Higher Education Act 
        of 1965 (20 U.S.C 1101a(a)).
          (2) Historically black college or university.-- The 
        term ``historically Black college or university'' has 
        the meaning given the term ``part B institution'' in 
        section 322 of the Higher Education Act of 1965 (20 
        U.S.C. 1061).
          (3) National laboratory.--The term `National 
        Laboratory' has the meaning given that term in section 
        903(5) of the Energy Policy Act of 2003.
          (4) Science facility.--The term `science facility' 
        has the meaning given the term `single purpose research 
        facility' in section 903(8) of the Energy Policy Act of 
        2003.
          (5) Tribal college.--The term `tribal college' has 
        the meaning given the term `tribally controlled college 
        or university' in section 2(a) of the Tribally 
        Controlled College or University Assistance Act of 1978 
        (25 U.S. C. 1801 (a)).
    (b) Education Partnership.--The Secretary shall direct the 
Director of each National Laboratory, and may direct the head 
of any science facility, to increase the participation of 
historically Black colleges or universities, Hispanic-serving 
institutions, or tribal colleges in activities that increase 
the capacity of the historically Black colleges or 
universities, Hispanic-serving institutions, or tribal colleges 
to train personnel in science or engineering.
    (c) Activities.--An activity under subsection (b) may 
include--
          (1) collaborative research;
          (2) equipment transfer;
          (3) training activities conducted at a National 
        Laboratory or science facility; and
          (4) mentoring activities conducted at a National 
        Laboratory or science facility.
    (d) Report.--Not later than 2 years after the date of 
enactment of this section, the Secretary shall submit to the 
Congress a report on the activities carried out under this 
section.

SEC. [3167.] 3168. DEFINITIONS.

    In this part:
          (1) The term ``Secretary'' means the Secretary of 
        Energy.
          (2) The term ``Department'' means the Department of 
        Energy.
          (3) The term ``Department research and development 
        facilities'' means all Department of Energy single-
        purpose and multipurpose National Laboratories and 
        research and development facilities and programs, and 
        any other facility or program operated by a contractor 
        funded from the Office of Energy Research of the 
        Department of Energy.
          (4) The term ``local educational agency'' has the 
        meaning given that term by section 1471(12) of the 
        Elementary and Secondary Education Act of 1965 (20 
        U.S.C. 2891(12)).

SEC. [3168.] 3169. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to the Secretary 
for carrying out university research support and other science, 
mathematics, and engineering education programs authorized by 
this subchapter and administered by the Office of Science of 
the Department of Energy, $40,000,000 for fiscal year 1991; and 
$40,000,000 for each of fiscal years 2004 through 2008.
                              ----------                              --
--------

 SPARK M. MATSUNAGA HYDROGEN RESEARCH, DEVELOPMENT, AND DEMONSTRATION 
                              ACT OF 1990

Public Law 101-566, as amended (42 U.S.C. 12401 et seq.)

           *       *       *       *       *       *       *

[SEC. 102. FINDING, PURPOSES, AND DEFINITION.

    [(a) Finding.--Congress finds that it is in the national 
interest to accelerate efforts to develop a domestic capability 
to economically produce hydrogen in quantities that will make a 
significant contribution toward reducing the Nation's 
dependence on conventional fuels.
    [(b) Purposes.--The purposes of this Act are--
          [(1) to direct the Secretary of Energy to conduct a 
        research, development, and demonstration program 
        leading to the production, storage, transport, and use 
        of hydrogen for industrial, residential, 
        transportation, and utility applications;
          [(2) to direct the Secretary to develop a technology 
        assessment and information transfer program among the 
        Federal agencies and aerospace, transportation, energy, 
        and other entities; and
          [(3) to develop renewable energy resources as a 
        primary source of energy for the production of 
        hydrogen.
    [(c) Definition.--As used in this Act, the term:
          [(1) ``critical technology'' (or ``critical technical 
        issue'') means a technology (or issue) that, in the 
        opinion of the Secretary, requires understanding and 
        development in order to take the next needed step in 
        the development of hydrogen as an economic fuel or 
        storage medium;
          [(2) ``Department'' means the Department of Energy; 
        and
          [(3) ``Secretary'' means the Secretary of Energy.

[SEC. 103. COMPREHENSIVE MANAGEMENT PLAN.

    [(a) Plan.--The Secretary shall prepare a comprehensive 5-
year program management plan for research and development 
activities, which shall be conducted over a period of no less 
than 5 years and shall be consistent with the provisions of 
sections 104 and 105. In the preparation of such plan, the 
Secretary shall consult with the Administrator of the National 
Aeronautics and Space Administration, the Secretary of 
Transportation, the Hydrogen Technical Advisory Panel 
established under section 108, and the heads of such other 
Federal agencies and such public and private organizations as 
he deems appropriate. The plan shall be structured to identify 
and address areas of research critical to the realization of a 
domestic hydrogen production capability within the shortest 
time practicable.
    [(b) Contents of Plan.--Within 180 days after the date of 
the enactment of this Act, the Secretary shall transmit the 
comprehensive program management plan to the Committee on 
Science, Space, and Technology of the House of Representatives 
and the Committee on Energy and Natural Resources of the 
Senate. Subsequent plans shall be incorporated in the 
management plan under this section. The plan shall include--
          [(1) a prioritization of research areas critical to 
        the economic use of hydrogen as a fuel and energy 
        storage medium;
          [(2) the program elements, management structure, and 
        activities, including program responsibilities of 
        individual agencies and individual institutional 
        elements;
          [(3) the program strategies including technical 
        milestones to be achieved toward specific goals during 
        each fiscal year for all major activities and projects;
          [(4) the estimated costs of individual program items, 
        including current as well as proposed funding levels 
        for each of the 5 years of the plan for each of the 
        participating agencies;
          [(5) a description of the methodology of coordination 
        and technology transfer; and
          [(6) the proposed participation by industry and 
        academia in the planning and implementation of the 
        program.
    [(c) Demonstration Plan.--The Secretary shall, in 
consultation with the Secretary of Transportation, the 
Administrator of the National Aeronautics and Space 
Administration, and the Hydrogen Technical Advisory Panel 
established under section 108, also prepare a comprehensive 
large-scale hydrogen demonstration plan with respect to 
demonstrations carried out pursuant to section 105. Subsequent 
plans shall be incorporated in the management plan under this 
section. Such plan shall include--
          [(1) a description of the necessary research and 
        development activities that must be completed before 
        initiation of a large-scale hydrogen production and 
        storage demonstration program;
          [(2) an assessment of the appropriateness of a large-
        scale demonstration immediately upon completion of the 
        necessary research and development activities;
          [(3) an implementation schedule with associated 
        budget and program management resource requirements; 
        and
          [(4) a description of the role of the private sector 
        in carrying out the demonstration program.

[I[SEC. 104. RESEARCH AND DEVELOPMENT.

    [(a) Program.--The Secretary shall conduct a research and 
development program, consistent with the comprehensive 5-year 
program management plan under section 103, to ensure the 
development of a domestic hydrogen fuel production capability 
within the shortest time practicable consistent with market 
conditions.
    [(b) Research.--(1) Particular attention shall be given to 
developing an understanding and resolution of all critical 
technical issues preventing the introduction of hydrogen into 
the marketplace.
    [(2) The Secretary shall initiate research or accelerate 
existing research in critical technical issues that will 
contribute to the development of more economic hydrogen 
production and use, including, but not limited to, critical 
technical issues with respect to production, liquefaction, 
transmission, distribution, storage, and use (including use of 
hydrogen in surface transportation).
    [(c) Renewable Energy Priority.--The Secretary shall give 
priority to those production techniques that use renewable 
energy resources as their primary source of energy for hydrogen 
production.
    [(d) New Technologies.--The Secretary shall, for the 
purpose of performing his responsibilities pursuant to this 
Act, solicit proposals for and evaluate any reasonable new or 
improved technology that could lead or contribute to the 
development of economic hydrogen production storage and 
utilization.
    [(e) Information.--The Secretary shall conduct evaluations, 
arrange for tests and demonstrations, and disseminate to 
developers information, data, and materials necessary to 
support efforts undertaken pursuant to this section, consistent 
with section 106.

[SEC. 105. DEMONSTRATIONS.

    [(a) Requirement.--The Secretary shall conduct 
demonstrations of critical technologies, preferably in self-
contained locations, so that technical and non-technical 
parameters can be evaluated to best determine commercial 
applicability of the technology.
    [(b) Small-Scale Demonstrations.--Concurrently with 
activities conducted pursuant to section 104, the Secretary 
shall conduct small-scale demonstrations of hydrogen technology 
at self-contained sites.

[SEC. 106. TECHNOLOGY TRANSFER PROGRAM.

    [(a) Program.--The Secretary shall conduct a program 
designed to accelerate wider application of hydrogen 
production, storage, utilization, and other technologies 
available in near term as a result of aerospace experience as 
well as other research progress by transferring critical 
technologies to the private sector. The Secretary shall direct 
the program with the advice and assistance of the Hydrogen 
Technical Advisory Panel established under section 108. The 
objective in seeking this advice is to increase participation 
of private industry in the demonstration of near commercial 
applications through cooperative research and development 
arrangements, joint ventures or other appropriate arrangements 
involving the private sector.
    [(b) Information.--The Secretary, in carrying out the 
program authorized by subsection (a), shall--
          [(1) Undertake an inventory and assessment of 
        hydrogen technologies and their commercial capability 
        to economically produce, store, or utilize hydrogen in 
        aerospace, transportation, electric utilities, 
        petrochemical, chemical, merchant hydrogen, and other 
        industrial sectors; and
          [(2) develop a National Aeronautics Space 
        Administration, Department of Energy, and industry 
        information exchange program to improve technology 
        transfer for--
                  [(A) application of aerospace experience by 
                industry;
                  [(B) application of research progress by 
                industry and aerospace;
                  [(C) application of commercial capability of 
                industry by aerospace; and
                  [(D) expression of industrial needs to 
                research organizations.
        The information exchange program may consist of 
        workshops, publications, conferences, and a data base 
        for the use by the public and private sectors.

[SEC. 107. COORDINATION AND CONSULTATION.

    [(a) Secretary's Responsibility.--The Secretary shall have 
overall management responsibility for carrying out programs 
under this Act. In carrying out such programs, the Secretary, 
consistent with such overall management responsibility--
          [(1) shall use the expertise of the National 
        Aeronautics and Space Administration and the Department 
        of Transportation; and
          [(2) may use the expertise of any other Federal 
        agency in accordance with subsection (b) in carrying 
        out any activities under this title, to the extent that 
        the Secretary determines that any such agency has 
        capabilities which would allow such agency to 
        contribute to the purpose of this Act.
    [(b) Assistance--The Secretary may, in accordance with 
subsection (a), obtain the assistance of any department, 
agency, or instrumentality of the Executive branch of the 
Federal Government upon written request, on a reimbursable 
basis or otherwise and with the consent of such department, 
agency, or instrumentality. Each such request shall identify 
the assistance the Secretary deems necessary to carry out any 
duty under this Act.
    [(c) Consultation.--The Secretary shall consult with the 
Administrator of the National Aeronautics and Space 
Administration, the Administrator of the Environmental 
Protection Agency, the Secretary of Transportation, and the 
Hydrogen Technical Advisory Panel established under section 108 
in carrying out his authorities pursuant to this Act.

[SEC. 108. TECHNICAL PANEL.

    [(a) Establishment.--There is hereby established the 
Hydrogen Technical Advisory Panel (the ``technical panel''), to 
advise the Secretary on the programs under this Act.
    [(b) Membership.--The technical panel shall be appointed by 
the Secretary and shall be comprised of such representatives 
from domestic industry, universities, professional societies, 
Government laboratories, financial, environmental, and other 
organizations as the Secretary deems appropriate based on his 
assessment of the technical and other qualifications of such 
representatives. Appointments to the technical panel shall be 
made within 90 days after the enactment of this Act. The 
technical panel shall have a chairman, who shall be elected by 
the members from among their number.
    [(c) Cooperation.--The heads of the departments, agencies, 
and instrumentalities of the Executive branch of the Federal 
Government shall cooperate with the technical panel in carrying 
out the requirements of this section and shall furnish to the 
technical panel such information as the technical panel deems 
necessary to carry out this section.
    [(d) Review.--The technical panel shall review and make any 
necessary recommendations to the Secretary on the following 
items--
          [(1) the implementation and conduct of programs under 
        this Act;
          [(2) the economic, technological, and environmental 
        consequences of the deployment of hydrogen production 
        and use systems; and
          [(3) comments on and recommendations for improvements 
        in the comprehensive 5-year program management plan 
        required under section 103.
    [(e) Support.--The Secretary shall provide such staff, 
funds and other support as may be necessary to enable the 
technical panel to carry out the functions described in this 
section.

[SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    [There is hereby authorized to be appropriated to carry out 
the purposes of this Act (in addition to any amounts made 
available for such purposes to other Acts)--
          [(1) $3,000,000 for the fiscal year 1992;
          [(2) $7,000,000 for the fiscal year 1993; and
          [(3) $10,000,000 for the fiscal year 1994.]

SEC 102. DEFINITIONS.

    In this Act--
    (a) the term ``advisory committee'' means the Hydrogen and 
Fuel Cell Technical Advisory Committee established under 
section 107.
    (b) the term ``Department'' means the Department of Energy.
    (c) the term `fuel cell'' means a device that directly 
converts the chemical energy of a fuel into electricity by an 
electrochemical process.
    (d) the term ``infrastructure'' means the equipment, 
systems, or facilities used to produce, distribute, deliver, or 
store hydrogen.
    (e) the term ``Secretary'' means the Secretary of Energy.

SEC. 103. HYDROGEN RESEARCH AND DEVELOPMENT.

    (a) In General.--The Secretary shall conduct a research and 
development program on technologies related to the production, 
distribution, storage, and use of hydrogen energy, fuel cells, 
and related infrastructure.
    (b) Goal.--The goal of such program shall be to enable the 
safe, economic, and environmentally sound use of hydrogen 
energy, fuel cells, and related infrastructure for 
transportation, commercial, industrial, residential, and 
electric power generation applications.
    (c) Focus.--In carrying out activities under this section, 
the Secretary shall focus on critical technical issues 
including, but not limited to--
          (1) the production of hydrogen from diverse energy 
        sources, with emphasis on cost-effective production 
        from renewable energy sources;
          (2) the delivery of hydrogen, including safe delivery 
        in fueling stations and use of existing hydrogen 
        pipelines;
          (3) the storage of hydrogen, including storage of 
        hydrogen in surface transportation;
          (4) fuel cell technologies for transportation, 
        stationary and portable applications, with emphasis on 
        cost-reduction of fuel cell stacks; and
          (5) the use of hydrogen energy and fuel cells, 
        including use in--
                  (A) isolated villages, islands, and areas in 
                which other energy sources are not available or 
                are very expensive; and
                  (B) foreign markets, particularly where an 
                energy infrastructure is not well developed.
    (d) Codes and Standards.--The Secretary shall facilitate 
the development of domestic and international codes and 
standards and seek to resolve other critical regulatory and 
technical barriers preventing the introduction of hydrogen 
energy and fuel cells into the marketplace.
    (e) Solicitation.--The Secretary shall carry out the 
research and development activities authorized under this 
section through solicitation of proposals, and evaluation using 
competitive merit review.
    (f) Cost Sharing.--The Secretary shall require a commitment 
from non-Federal sources of at least 20 percent of the cost of 
proposed research and development projects. The Secretary may 
reduce or eliminate the cost sharing requirement--
          (1) if the Secretary determines that the research and 
        development is of a basic or fundamental nature, or
          (2) for technical analyses, outreach activities, and 
        educational programs that the Secretary does not expect 
        to result in a marketable product.

SEC. 104. DEMONSTRATION PROGRAMS.

    (a) Requirement.--In conjunction with activities conducted 
under section 103, the Secretary shall conduct demonstrations 
of hydrogen energy and fuel cell technologies in order to 
evaluate the commercial potential of such technologies.
    (b) Solicitation.--The Secretary shall carry out the 
demonstrations authorized under this section through 
solicitation of proposals, and evaluation using competitive 
merit review.
    (c) Cost Sharing.--The Secretary shall require a commitment 
from non-Federal sources of at least 50 percent of the costs 
directly relating to a demonstration project under this 
section. The Secretary may reduce such non-Federal requirement 
if the Secretary determines that the reduction is appropriate 
considering the technological risks involved in the project.

SEC. 105. TECHNOLOGY TRANSFER.

    The Secretary shall conduct programs to--
    (a) transfer critical hydrogen energy and fuel cell 
technologies to the private sector in order to promote wider 
understanding of such technologies and wider use of research 
progress under this Act;
    (b) to accelerate wider application of hydrogen energy and 
fuel cell technologies in foreign countries in order to 
increase the global market for the technologies and foster 
global development without harmful environmental effects;
    (c) foster the exchange of generic, nonproprietary 
information and technology developed pursuant to this Act, 
among industry, academia, and the Federal agencies; and
    (d) inventory and assess the technical and commercial 
viability of technologies related to production, distribution, 
storage, and use of hydrogen energy and fuel cells.

SEC. 106. COORDINATION AND CONSULTATION.

    The Secretary shall have overall management responsibility 
for carrying out programs under this Act. In carrying out such 
programs, the Secretary--
    (a) shall establish a central point for the coordination of 
all hydrogen energy and fuel cell research, development, and 
demonstration activities of the Department;
    (b) in carrying out the Secretary's authorities pursuant to 
this Act, shall consult with other Federal agencies as 
appropriate, and may obtain the assistance of any Federal 
agency, on a reimbursable basis or otherwise and with the 
consent of such agency;
    (c) shall attempt to ensure that activities under this Act 
do not unnecessarily duplicate any available research and 
development results or displace or compete with privately 
funded hydrogen and fuel cell energy activities.

SEC. 107. ADVISORY COMMITTEE.

    (a) Establishment.--There is hereby established the 
Hydrogen and Fuel Cell Technical Advisory Committee, to advise 
the Secretary on the programs under this Act.
    (b) Membership.--The advisory committee shall be comprised 
of not fewer than 12 nor more than 25 members appointed by the 
Secretary based on their technical and other qualifications 
from domestic industry, automakers, universities, professional 
societies, Federal laboratories, financial institutions, and 
environmental and other organizations as the Secretary deems 
appropriate. The advisory committee shall have a chairperson, 
who shall be elected by the members from among their number.
    (c) Terms.--Members of the advisory committee shall be 
appointed for terms of 3 years, with each term to begin not 
later than 3 months after the date of enactment of Clean and 
Secure Energy Act, except that one-third of the members first 
appointed shall serve for 1 year, and one-third of the members 
first appointed shall serve for 2 years, as designated by the 
Secretary at the time of appointment.
    (d) Review.--The advisory committee shall review and make 
any necessary recommendations to the Secretary on--
          (1) implementation and conduct of programs under this 
        Act;
          (2) economic, technological, and environmental 
        consequences of the deployment of technologies related 
        to production, distribution, storage, and use of 
        hydrogen energy, and fuel cells;
          (3) means for resolving barriers to implementing 
        hydrogen and fuel cell technologies; and
          (4) the coordination plan and any updates thereto 
        prepared by the Secretary pursuant to section 108.
    (e) Response.--The Secretary shall consider any 
recommendations made by the advisory committee, and shall 
provide a response to the advisory committee within 30 days 
after receipt of such recommendations. Such response shall 
either describe the implementation of the advisory committee's 
recommendations or provide an explanation of the reasons that 
any such recommendations will not be implemented.
    (f) Support.--The Secretary shall provide such staff, funds 
and other support as may be necessary to enable the advisory 
committee to carry out its functions. In carrying out 
activities pursuant to this section, the advisory committee may 
also obtain the assistance of any Federal agency, on a 
reimbursable basis or otherwise and with the consent of such 
agency.

SEC. 108. COORDINATION PLAN.

    (a) Plan.--The Secretary, in consultation with other 
Federal agencies, shall prepare and maintain on an ongoing 
basis a comprehensive plan for activities under this Act.
    (b) Development.--In developing such plan, the Secretary 
shall--
          (1) consider the guidance of the National Hydrogen 
        Energy Roadmap published by the Department in November 
        2002 and any updates thereto;
          (2) consult with the advisory committee;
          (3) consult with interested parties from domestic 
        industry, automakers, universities, professional 
        societies, Federal laboratories, financial 
        institutions, and environmental and other organizations 
        as the Secretary deems appropriate.
    (c) Contents.--At a minimum, the plan shall provide--
          (1) an assessment of the effectiveness of the 
        programs authorized under this Act, including a summary 
        of recommendations of the advisory committee for 
        improvements in such programs;
          (2) a description of proposed research, development, 
        and demonstration activities planned by the Department 
        for the next five years;
          (3) a description of the role Federal laboratories, 
        institutions of higher education, small businesses, and 
        other private sector firms are expected to play in such 
        programs;
          (4) cost and performance milestones that will be used 
        to evaluate the programs for the next five years; and
          (5) any significant technical, regulatory, and other 
        hurdles that stand in the way of achieving such cost 
        and performance milestones, and how the programs will 
        address those hurdles; and
          (6) to the extent practicable, an analysis of 
        Federal, State, local, and private sector hydrogen 
        research, development, and demonstration activities to 
        identify areas for increased intergovernmental and 
        private public sector collaboration.
    (d) Report.--Not later than January 1, 2005, and biennially 
thereafter, the Secretary shall transmit to Congress the 
comprehensive plan developed for the programs authorized under 
this Act, or any updates thereto.''

SEC. 109. AUTHORIZATION OF APPROPRIATIONS.

    There are authorized to be appropriated to carry out the 
purposes of this Act--
          (1) such sums as may be necessary for fiscal years 
        1992 through 2003;
          (2) $105,000,000 for fiscal year 2004;
          (3) $150,000,000 for fiscal year 2005;
          (4) $175,000,000 for fiscal year 2006;
          (5) $200,000,000 for fiscal year 2007; and
          (6) $225,000,000 for fiscal year 2008
                              ----------                              

           CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

        Public Law 101-625, as amended (42 U.S.C. 12701 et seq.)

    Sec. 109.(a) * * *
          (1) 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] September 30, 2003 jointly 
        establish, by rule, energy efficiency standards for--
                  (A) new construction of public and assisted 
                housing and single family and multifamily 
                residential housing (other than manufactured 
                homes) subject to mortgages insured under the 
                National Housing Act (12 U.S.C. 1701 et seq.); 
                [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 (42 U.S.C. 1471 et seq.)[.] 
                ; and
                  (C) rehabilitation and new construction of 
                public and assisted housing funded by HOPE VI 
                revitalization grants under section 24 of the 
                United States Housing Act of 1937 (42 
                U.S.C.1437v), where such standards are 
                determined to be cost effective by the 
                Secretary of Housing and Urban Development.
          (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 AirConditioning Engineers Standard 
        90.1-1989 (hereafter in this section referred to as 
        ``ASHRAE Standard 90.1-1989'')] 2000 International 
        Energy Conservation Code and shall be cost-effective 
        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] September 30, 2003 established energy efficiency 
standards under subsection (a) of this section, 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] the 2000 International Energy Conservation 
Code.
    (c) Revisions of [Model Energy Code]International 
Energy Conservation Code.-- If the 
requirements of [CABO Model Energy Code, 1992, or, in the case 
of multifamily high rises, ASHRAE Standard 90.1-1989] the 2000 
International Energy Conservation Code, are revised at any 
time, the Secretaries shall, not later than 1 year after such 
revision, amend the standards established under subsection (a) 
of this section 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.
                              ----------                              

                 HIGH-PERFORMANCE COMPUTING ACT OF 1991

Public Law 102-194, as amended (15 U.S.C. 5501 et seq.)

           *       *       *       *       *       *       *

SEC. 4. DEFINITIONS.

    As used in this Act, the term--

           *       *       *       *       *       *       *

          (3) ``high-performance computing'' [means] and 
        ``networking and information technology'' mean advanced 
        computing, communications, and information 
        technologies, including scientific workstations, 
        supercomputer systems [(including vector supercomputers 
        and large scale parallel systems)], high-capacity and 
        high-speed networks, special purpose and experimental 
        systems, and applications and systems software;
          (4) ``Internet'' means the international computer 
        network of both Federal and non-Federal interoperable 
        [packet switched] data networks;

           *       *       *       *       *       *       *

SEC. 203. DEPARTMENT OF ENERGY ACTIVITIES.

    (a) General Responsibilities.--As part of the [Program 
described in subchapter I of this chapter, the Secretary of 
Energy shall--
          [(1) perform research and development on, and systems 
        evaluations of, highperformance computing and 
        communications systems;
          [(2) conduct computational research with emphasis on 
        energy applications;
          [(3) support basic research, education, and human 
        resources in computational science; and
          [(4) provide for networking infrastructure support 
        for energy-related mission activities.] Networking and 
        Information Technology Research and Development 
        Program, the Secretary of Energy shall conduct basic 
        and applied research in networking and information 
        technology, with emphasis on supporting fundamental 
        research in the physical sciences and engineering, and 
        energy applications; providing supercomputer access and 
        advanced communication capabilities and facilities to 
        scientific researchers; and developing tools for 
        distributed scientific collaboration.
    (b) Collaborative Consortia.--In accordance with the 
[Program] Networking and Information Technology Research and 
Development Program, the Secretary of Energy shall establish 
High-Performance Computing Research and Development 
Collaborative Consortia by soliciting and selecting proposals. 
Each Collaborative Consortium shall--

           *       *       *       *       *       *       *

    (e) Authorization of Appropriations.--[(1) There are 
authorized to be appropriated to the Secretary of Energy for 
the purposes of the Program $93,000,000 for fiscal year 1992; 
$110,000,000 for fiscal year 1993; $138,000,000 for fiscal year 
1994: $157,000,000 for fiscal year 1995; and $169,000,000 for 
fiscal year 1996.
    [(2) There are authorized to be appropriated to the 
Secretary of Energy for fiscal years 1992, 1993, 1994, 1995, 
and 1996, such funds as may be necessary to carry out the 
activities that are not part of the Program but are authorized 
by this section.] There are authorized to be appropriated to 
the Secretary of Energy to carry out the Networking and 
Information Technology Research and Development Program such 
sums as may be necessary for fiscal years 2004 through 2008.

           *       *       *       *       *       *       *

                              ----------                              --

                       ENERGY POLICY ACT OF 1992

Public Law 102-486, as amended (42 U.S.C. 13211 et seq.)

           *       *       *       *       *       *       *

                            TABLE OF CONTENTS

     * * * * * * *

                  TITLE III--ALTERNATIVE FUELS--GENERAL

     * * * * * * *
Sec. 311. United States Postal Service.
Sec. 312. Fuel Use Credits.
     * * * * * * *

                 TITLE III--ALTERNATIVE FUELS--GENERAL

SEC. 301. DEFINITIONS.

    For the purposes of this title, title IV, and title V 
(unless otherwise specified)--
          (1) * * *
          (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, 
        including liquid fuels domestically produced from 
        natural gas; liquefied petroleum gas; mixtures 
        containing 50 percent or more by volume of lease 
        condensate or fuels extracted from lease condensate; 
        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], a dual 
        fueled vehicle, or a neighborhood electric 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, 
        mixtures containing 50 percent or more by volume of 
        lease condensate or fuels extracted from lease 
        condensate, 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[.]; and
          (15) the term `neighborhood electric vehicle' means a 
        motor vehicle--
                  (A) which meets the definition of a low-speed 
                vehicle, as such term is defined in part 571 of 
                title 49, Code of Federal Regulations;
                  (B) which meets the definition of a zero-
                emission vehicle, as such term is defined in 
                section 86.1702-99 of title 40, Code of Federal 
                Regulations;
                  (C) which meets the requirements of Federal 
                Motor Vehicle Safety Standard No. 500; and
                  (D) which has a top speed of not greater than 
                25 miles per hour.
          (16) the term ``lease condensate'' means a mixture, 
        primarily of pentanes and heavier hydrocarbons, which 
        is recovered as a liquid from natural gas in lease 
        separation facilities.

           *       *       *       *       *       *       *

SEC. 303. MINIMUM FEDERAL FLEET REQUIREMENT.

    (a) * * *
    (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.
    (4) HYDROGEN VEHICLES.--
          (A) Of the number of vehicles acquired under 
        paragraph (1)(D) by a Federal feet of 100 or more 
        vehicles, not less than--
                  (i) 5 percent in fiscal years 2006 and 2007;
                  (ii) 10 percent in fiscal years 2008 and 
                2009;
                  (iii) 15 percent in fiscal years 2010 and 
                2011; and
                  (iv) 20 percent in fiscal years 2012 and 
                thereafter, shall be hydrogen-powered vehicles 
                that meet standards for performance, 
                reliability, cost, and maintenance established 
                by the Secretary.
          (B) The Secretary may establish a lesser percentage, 
        or waive the requirement under subparagraph (A) for any 
        fiscal year entirely, if hydrogen-powered vehicles 
        meeting the standards set by the Secretary pursuant to 
        subparagraph (A) are not available at a purchase price 
        that is less than 150 percent of the purchase price of 
        other comparable alternative fueled vehicles.
          (C) The Secretary may by rule, delay the 
        implementation of the requirements under subparagraph 
        (A) in the event that the Secretary determines that 
        hydrogen-powered vehicles are not commercially or 
        economically available, or that fuel for such vehicles 
        is not commercially or economically available.
          (D) The Secretary, in consultation with the 
        Administrator of General Services, may for reasons of 
        refueling infrastructure use and cost optimization, 
        elect to allocate the acquisitions necessary to achieve 
        the requirements in subparagraph (A) to certain Federal 
        fleets in lieu of requiring each Federal fleet to 
        achieve the requirements in subparagraph (A).
    (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] shall 
allocate the incremental cost of alternative fuel vehicles over 
the cost of comparable gasoline vehicles across the entire 
fleet of motor vehicles distributed by such agency.

           *       *       *       *       *       *       *

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 13212 of this title at 
commercial fueling facilities that offer alternative fuels for 
sale to the public. [If publicly]
    (b) Commercial Arrangements.--
    (1) In general.--If publically available fueling facilities 
are not convenient or accessible to the location of Federal 
alternative fueled vehicles purchased under section 13212 of 
this title, 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.
          (2) Mandatory arrangements.--
                  (A) In general.--In a case in which publicly 
                available fueling facilities are not convenient 
                or accessible to the locations of 2 or more 
                Federal bleets for which hydrogen-powered 
                vehicles are required to be purchased under 
                section 303(b)(4), the Federal agency for which 
                the Federal fleets are maintained (or the 
                Federal agencies for which the Federal fleets 
                are maintained, acting jointly under a 
                memorandum of agreement providing for cost 
                sharing) shall enter into a commercial 
                arrangement as provided in paragraph (1).
                  (B) Sunset.--Subparagraph (A) ceases to be 
                effective at the end offiscal year 2013.
    [(b)] (c) Authorization of Appropriations.--There are 
authorized to be appropriated to the Secretary for carrying out 
this section such sums as maybe necessary for fiscal years 1993 
through 1998, to remain available until expended.

           *       *       *       *       *       *       *

SECTION 312. [BIODIESEL] FUEL USE CREDITS.

    [(a) Allocation of Credits.--
          [(1) In general.--The Secretary shall allocate one 
        credit under this section to a fleet or covered person 
        for each qualifying volume of the biodiesel component 
        of fuel containing at least 20 percent biodiesel by 
        volume purchased after the date of the enactment of 
        this section for use by the fleet or covered person in 
        vehicles owned or operated by the fleet or covered 
        person that weigh more than 8,500 pounds gross vehicle 
        weight rating.
          [(2) Exceptions.--No credits shall be allocated under 
        paragraph (1) for a purchase of biodiesel--
                  [(A) for use in alternative fueled vehicles; 
                or
                  [(B) that is required by Federal or State 
                law.
          [(3) Authority to modify percentage.--The Secretary 
        may, by rule, lower the 20 percent biodiesel volume 
        requirement in paragraph (1) for reasons related to 
        cold start, safety, or vehicle function considerations.
          [(4) Documentation.--A fleet or covered person 
        seeking a credit under this section shall provide 
        written documentation to the Secretary supporting the 
        allocation of a credit to such fleet or covered person 
        under paragraph (1).
    [(b) Use of Credits.--
          [(1) In general.--At the request of a fleet or 
        covered person allocated a credit under subsection (a), 
        the Secretary shall, for the year in which the purchase 
        of a qualifying volume is made, treat that purchase as 
        the acquisition of one alternative fueled vehicle the 
        fleet or covered person is required to acquire under 
        this title, title IV, or title V.
          [(2) Limitation.--Credits allocated under subsection 
        (a) may not be used to satisfy more than 50 percent of 
        the alternative fueled vehicle requirements of a fleet 
        or covered person under this title, title IV, and title 
        V. This paragraph shall not apply to a fleet or covered 
        person that is a biodiesel alternative fuel provider 
        described in section 501(a)(2)(A).
    [(c) Credit Not a Section 508 Credit.--A credit under this 
section shall not be considered a credit under section 508.
    [(d) Issuance of Rule.--The Secretary shall, before January 
1, 1999, issue a rule establishing procedures for the 
implementation of this section.
    [(e) Collection of Data.--The Secretary shall collect such 
data as are required to make a determination described in 
subsection (f)(2)(B).
    [(f) Definitions.--For purposes of this section--
          [(1) the term ``biodiesel'' means a diesel fuel 
        substitute produced from nonpetroleum renewable 
        resources that meets the registration requirements for 
        fuels and fuel additives established by the 
        Environmental Protection Agency under section 211 of 
        the Clean Air Act; and
          [(2) the term ``qualifying volume'' means--
                  [(A) 450 gallons; or
                  [(B) if the Secretary determines by rule that 
                the average annual alternative fuel use in 
                light duty vehicles by fleets and covered 
                persons exceeds 450 gallons or gallon 
                equivalents, the amount of such average annual 
                alternative fuel use.]
    (a) Allocation.--
          [(1) The Secretary shall allocate one credit under 
        this section to a fleet or covered person for each 
        qualifying volume of alternative fuel or biodiesel 
        purchased for use in an on-road motor vehicle operated 
        by the fleet that weighs more than 8,500 pounds gross 
        vehicle weight rating.
          [(2) No credits shall be allocated under this section 
        for purchase of an alternative fuel or biodiesel that 
        is required by Federal or State law.
          [(3) A fleet or covered person seeking a credit under 
        this section shall provide written documentation to the 
        Secretary supporting the allocation of a credit to such 
        fleet or covered person under this section.
    (b) Use.--At the request of a fleet or covered person 
allocated a credit under subsection (a), the Secretary shall, 
for the year in which the purchase of a qualifying volume is 
made, treat that purchase as the acquisition of one alternative 
fueled vehicle the feet or covered person is required to 
acquire under this title, title IV, or title V.
    (c) Treatment.--A credit provided to a fleet or covered 
person under this section shall be considered a credit under 
section 508.
    (d) Issuance of Rule.--Not later than 6 months after the 
date of enactment of this section, the Secretary shall issue a 
rule establishing procedures for the implementation of this 
section.
    (e) Definitions.--For the purposes of this section--
          (1) the term ``biodiesel'' means a diesel fuel 
        substitute produced from nonpetroleum renewable 
        resources that meets the registration requirements for 
        fuels and fuel additives established by the 
        Environmental Protection Agency under section 211 of 
        the Clean Air Act; and
          (2) the term ``qualifying volume'' means--
                  (A) in the case of biodiesel, when used as a 
                component of fuel containing at least 20 
                percent biodiesel by volume, 450 gallons, or if 
                the Secretary determines by rule that the 
                average annual alternative fuel use in light 
                duty vehicles by fleets and covered persons 
                exceeds 450 gallons or gallon equivalents, the 
                amount of such average annual alternative fuel 
                use; or
                  (B) in the case of an alternative fuel, the 
                amount of such fuel determined by the Secretary 
                to have an equivalent energy content to the 
                amount of biodiesel defined as a qualifying 
                volume pursuant to subparagraph (A).

           *       *       *       *       *       *       *

TITLE V--AVAILABILITY AND USE OF REPLACEMENT FUELS, ALTERNATIVE FUELS, 
AND ALTERNATIVE FUELED PRIVATE VEHICLES

           *       *       *       *       *       *       *

SEC. 507. FLEET REQUIREMENT PROGRAM.

           *       *       *       *       *       *       *

    (p) Credits for New Qualified Hybrid Motor Vehicles.--
          (1) Definitions.--In this subsection:
                  ``(A) 2000 model year city fuel efficiency.--
                The term ``2000 model year city fuel 
                efficiency'', with respect to a motor vehicle, 
                means fuel efficiency determined in accordance 
                with the following tables:
                          (i) In the case of a passenger 
                        automobile:
                                                The 2000 model year city
If vehicle inertia weight class is:                  fuel efficiency is:
    1,500 or 1,750 lbs........................................  43.7 mpg
    2,000 lbs.................................................  38.3 mpg
    2,250 lbs.................................................  34.1 mpg
    2,500 lbs.................................................  30.7 mpg
    2,750 lbs.................................................  27.9 mpg
    3,000 lbs.................................................  25.6 mpg
    3,500 lbs 22.0 mpg........................................
    4,000 lbs.................................................  19.3 mpg
    4,500 lbs.................................................  17.2 mpg
    5,000 lbs.................................................  15.5 mpg
    5,500 lbs.................................................  14.1 mpg
    6,000 lbs.................................................  12.9 mpg
    6,500 lbs.................................................  11.9 mpg
    7,000 to 8,500 lbs........................................ 11.1 mpg.

                          (ii) In the case of a light truck:
                                                The 2000 model year city
If vehicle inertia weight class is:                  fuel efficiency is:
    1,500 or 1,750 lbs........................................  37.6 mpg
    2,000 lbs.................................................  33.7 mpg
    2,250 lbs.................................................  30.6 mpg
    2,500 lbs.................................................  28.0 mpg
    2,750 lbs.................................................  25.9 mpg
    3,000 lbs.................................................  24.1 mpg
    3,500 lbs.................................................  21.3 mpg
    4,000 lbs.................................................  19.0 mpg
    4,500 lbs.................................................  17.3 mpg
    5,000 lbs.................................................  15.8 mpg
    5,500 lbs.................................................  14.6 mpg
    6,000 lbs.................................................  13.6 mpg
    6,500 lbs.................................................  12.8 mpg
    7,000 to 8,500 lbs........................................ 12.0 mpg.

                  (B) Administrator.--The term `Administrator' 
                means the Administrator of the Environmental 
                Protection Agency.
                  (C) Energy storage device.--The term `energy 
                storage device' means an onboard rechargeable 
                energy storage system or similar storage 
                device.
                  (D) Fuel efficiency.--The term `fuel 
                efficiency' means the percentage increased fuel 
                efficiency specified in table 1 in paragraph 
                (2)(C) over the average 2000 model year city 
                fuel efficiency of vehicles in the same weight 
                class.
                  (E) Maximum available Power.--The term 
                `maximum available power', with respect to a 
                new qualified hybrid motor vehicle that is a 
                passenger vehicle or light truck, means the 
                quotient obtained by dividing--
                          (i) the maximum power available from 
                        the electrical storage device of the 
                        new qualified hybrid motor vehicle, 
                        during a standard 10-second pulse power 
                        or equivalent test; by
                          (ii) the sum of--
                                  (I) the maximum power 
                                described in clause (i); and
                                  (II) the net power of the 
                                internal combustion or heat 
                                engine, as determined in 
                                accordance with standards 
                                established by the Society of 
                                Automobile Engineers.
                  (F) Motor vehicle.--The term `motor vehicle' 
                has the meaning given the term in section 216 
                of the Clean Air Act (42 U.S.C. 7550).
                  (G) New qualified hybrid motor vehicle.--The 
                term ``new qualified hybrid motor vehicle'' 
                means a motor vehicle that
                        (i) draws propulsion energy from both--
                                  (I) an internal combustion 
                                engine (or heat engine that 
                                uses combustible fuel); and
                                  (II) an energy storage 
                                device;
                          (ii) in the case of a passenger 
                        automobile or light truck--
                                  (I) in the case of a 2001 or 
                                later model vehicle, receives a 
                                certificate of conformity under 
                                the Clean Air Act (42 U.S.C. 
                                7401 et seq.) and produces 
                                emissions at a level that is at 
                                or below the standard 
                                established by a qualifying 
                                California standard described 
                                in section 243(e)(2) of the 
                                Clean Air Act (42 U.S.C. 
                                7583(e)(2)) for that make and 
                                model year; and
                                  (II) in the case of a 2004 or 
                                later model vehicle, is 
                                certified by the Administrator 
                                as producing emissions at a 
                                level that is at or below the 
                                level established for Bin 5 
                                vehicles in the Tier 2 
                                regulations promulgated by the 
                                Administrator under section 
                                202(i) of the Clean Air Act (42 
                                U.S.C. 7521(1))for that make 
                                and model year vehicle; and
                          (iii) employs a vehicle braking 
                        system that recovers waste energy to 
                        charge an energy storage device.
                  (H) Vehicle inertia weight class.--The term 
                ``vehicle inertia weight class'' has the 
                meaning given the term in regulations 
                promulgated by the Administrator for purposes 
                of the administration of title II of the Clean 
                Air Act (42 U.S.C. 7521 et seq.).
          (2) Allocation.--
                  (A) In general.--The Secretary shall allocate 
                a partial credit to a fleet or covered person 
                under this title if the fleet or person 
                acquires a new qualified hybrid motor vehicle 
                that is eligible to receive a credit under each 
                of the tables in subparagraph (C).
                  (B) Amount.--The amount of a partial credit 
                allocated under subparagraph (A) for a vehicle 
                described in that subparagraph shall be equal 
                to the sum of--
                          (i) the partial credits determined 
                        under table 1 in subparagraph (C); and
                          (ii) the partial credits determined 
                        under table 2 in subparagraph (C).
                  (C) Tables.--The tables referred to in 
                subparagraphs (A) and (B) are as follows:

Table 1

Partial credit for increased fuel efficiency:          Amount of credit:
    At least 125% but less than 150% of 2000 model year city 
      fuel efficiency.........................................      0.14
    At least 150% but less than 175% of 2000 model year city 
      fuel efficiency.........................................      0.21
    At least 175% but less than 200% of 2000 model year city 
      fuel efficiency.........................................      0.28
    At least 200% but less than 225% of 2000 model year city 
      fuel efficiency.........................................      0.35
    At least 225% but less than 250% of 2000 model year city 
      fuel efficiency.........................................     0.50.

Table 2

 Partial credit for ``Maximum Available Power'':       Amount of credit:
    At least 5% but less than 10%.............................     0.125
    At least 10% but less than 20%............................     0.250
    At least 20% but less than 30%............................     0.375
    At least 30% or more......................................    0.500.

                  (D) Use of credits.--At the request of a 
                fleet or covered person allocated a credit 
                under this subsection, the Secretary shall, for 
                the year in which the acquisition of the 
                qualified hybrid motor vehicle is made, treat 
                that credit as the acquisition of alternative 
                fueled vehicle that the fleet or covered person 
                is required to acquire under this title.
          (3) Regulations.--The Secretary shall promulgate 
        regulations under which any Federal feet that acquires 
        a new qualified hybrid motor vehicle will receive 
        partial credits determined under the tables contained 
        in paragraph (2)(C) for purposes of meeting the 
        requirements of section 303.
    (q) Credit for Substantial Contribution Towards Use of 
Dedicated Vehicles in Noncovered Fleets.--
          (1) Definitions.--In this subsection:
                  (A) Dedicated vehicle.--The term ``dedicated 
                vehicle'' includes--
                          (i) a light, medium, or heavy duty 
                        vehicle; and
                          (ii) a neighborhood electric vehicle.
                  (B) Medium or heavy duty vehicle.--
                          The term ``medium or heavy duty 
                        vehicle'' includes a vehicle that--
                          (i) operates solely on alternative 
                        fuel; and
                          (ii)(I) in the case of a medium duty 
                        vehicle, has a gross vehicle weight 
                        rating of more than 8,500 pounds but 
                        not more than 14,000 pounds; or
                          (II) in the case of a heavy duty 
                        vehicle, has a gross vehicle weight 
                        rating of more than 14,000 pounds.
                  (C) Substantial contribution.--The term 
                ``substantial contribution'' (equal to 1 full 
                credit) means not less than $15,000 in cash or 
                in kind services, as determined by the 
                Secretary.
          (2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title if 
        the fleet or person makes a substantial contribution 
        toward the acquisition and use of dedicated vehicles by 
        a person that owns, operates, leases, or otherwise 
        controls a fleet that is not covered by this title.
          (3) Multiple credits for medium and heavy duty 
        dedicated vehicles.--The Secretary shall issue 2 full 
        credits to a fleet or covered person under this title 
        if the fleet or person acquires a medium or heavy duty 
        dedicated vehicle.
          (4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the acquisition of the dedicated vehicle is made, treat 
        that credit as the acquisition of 1 alternative fueled 
        vehicle that the fleet or covered person is required to 
        acquire under this title.
          (5) Limitation.--Per vehicle credits acquired under 
        this subsection shall not exceed the per vehicle 
        credits allowed under this section to a fleet for 
        qualifying vehicles in each of the weight categories 
        (light, medium, or heavy duty).
    (r) Credit for Substantial Investment in Alternative Fuel 
Infrastructure.--
          (1) Definitions.--In this section, the term 
        ``qualifying infrastructure'' means--
                  (A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                  (B) facilities or equipment required to 
                maintain, repair, or operate alternative fueled 
                vehicles;
                  (C) training programs, educational materials, 
                or other activities necessary to provide 
                information regarding the operation, 
                maintenance, or benefits associated with 
                alternative fueled vehicles; and
                  (D) such other activities the Secretary 
                considers to constitute an appropriate 
                expenditure in support of the operation, 
                maintenance, or further widespread adoption of 
                or utilization of alternative fueled vehicles.
          (2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title 
        for investment in qualifying infrastructure if the 
        qualifying infrastructure is open to the general public 
        during regular business hours.
          (3) Amount.--For the purposes of credits under this 
        subsection--
                  (A) 1 credit shall be equal to a minimum 
                investment of $25, 000 in cash or in kind 
                services, as determined by the Secretary; and
                  (B) except in the case of a Federal or State 
                fleet, no part of the investment may be 
                provided by Federal or State funds.
          (4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the investment is made, treat that credit as the 
        acquisition of 1 alternative fueled vehicle that the 
        fleet or covered person is required to acquire under 
        this title.

           *       *       *       *       *       *       *

SEC. 508. CREDITS.

           *       *       *       *       *       *       *

    (e) Credit for Purchase of Medium and Heavy Duty Dedicated 
Vehicles.--
          (1) Definitions.--In this subsection:
                  (A) The term ``medium duty dedicated 
                vehicle'' means a dedicated vehicle that has a 
                gross vehicle weight rating of more than 8,500 
                pounds but not more than 14,000 pounds.
                  (B) The term ``heavy duty dedicated vehicle'' 
                means a dedicated vehicle that has a gross 
                vehicle weight rating of more than 14,000 
                pounds.
          (2) Credits for medium duty vehicles.--The Secretary 
        shall issue 2 full credits to a fleet or covered person 
        under this title, if the fleet or covered person 
        acquires a medium duty dedicated vehicle.
          (3) Credits for heavy duty vehicles.--The Secretary 
        shall issue 3 full credits to a fleet or covered person 
        under this title, if the fleet or covered person 
        acquires a heavy duty dedicated vehicle.
          (4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the acquisition of the dedicated vehicle is made, treat 
        that credit as the acquisition of 1 alternative fueled 
        vehicle that the fleet or covered person is required to 
        acquire under this title.
    (f) Credit for Investment in Alternative Fuel 
Infrastructure.--
          (1) Definitions.--In this subsection, the term 
        ``qualifying infrastructure'' means--
                  (A) equipment required to refuel or recharge 
                alternative fueled vehicles;
                  (B) facilities or equipment required to 
                maintain, repair, or operate alternative fueled 
                vehicles;
                  (C) such other activities the Secretary 
                considers to constitute an appropriate 
                expenditure in support of the operation, 
                maintenance, or further widespread adoption of 
                or utilization of alternative fueled vehicles.
          (2) Issuance of credits.--The Secretary shall issue a 
        credit to a fleet or covered person under this title 
        for investment in qualifying infrastructure if the 
        qualifying infrastructure is open to the general public 
        during regular business hours.
          (3) Amount.--For the purposes of credits under this 
        subsection--
                  (A) 1 credit shall be equal to a minimum 
                investment of $25,000 in cash or equivalent 
                expenditure, as determined by the Secretary; 
                and
                  (B) except in the case of a Federal or State 
                fleet, no part of the investment may be 
                provided by Federal or State funds.
          (4) Use of credits.--At the request of a fleet or 
        covered person allocated a credit under this 
        subsection, the Secretary shall, for the year in which 
        the investment is made, treat that credit as the 
        acquisition of 1 alternative fueled vehicle that the 
        fleet or covered person is required to acquire under 
        this title.

           *       *       *       *       *       *       *

SEC. 515. ALTERNATIVE COMPLIANCE.

    (a) Application for Waiver.--Any covered person subject to 
the requirements of section 501 and any State subject to the 
requirement of section 507(o) may petition the Secretary for a 
waiver of the applicable requirements of section 501 or 507(o).
    (b) Grant of Waiver.--The Secretary may grant a waiver of 
the requirements of section 501 or 507(o) upon a showing that 
the fleet owned, operated, leased, or otherwise controlled by 
the State or covered person --
          (1) will achieve a reduction in its annual 
        consumption of petroleum fuels equal to the reduction 
        in consumption of petroleum that would result from 
        compliance with section 501 or 507(o); and
          (2) is in compliance with all applicable vehicle 
        emission standards established by the Administrator 
        under the Clean Air Act.
    (c) Revocation of Waiver.--The Secretary shall revoke any 
waiver granted under this section if the State or covered 
person fails to comply with the requirements of subsection (b).

           *       *       *       *       *       *       *

SEC. 1212. RENEWABLE ENERGY PRODUCTION INCENTIVE.

    (a) Incentive Payments.--For electric energy generated and 
sold by a qualified renewable energy 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) of this section. Payments under this section may 
only be made upon receipt by the Secretary of an incentive 
payment application which establishes that the applicant is 
eligible to receive such payment [and which satisfies such 
other requirements as the Secretary deems necessary. Such 
application shall be in such form, and shall be submitted at 
such time, as the Secretary shall establish.]. If there are 
insufficient appropriations to make full payment for electric 
production from all qualified renewable energy facilities in 
any given year, the Secretary shall assign 60 percent of 
appropriated funds for that year to facilities that use solar, 
wind, geothermal, or closed loop (dedicated energy crops) 
biomass technologies to generate electricity, and assign the 
remaining 40 percent to other projects. The Secretary may, 
after transmitting to Congress an explanation of the reasons 
therefor, alter the percentage requirements of the preceding 
sentence.
    (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] a not-for-profit electric cooperative, a public 
utility described in section 115 of the Internal Revenue Code 
of 1986, a State, Commonwealth, territory, or possession of the 
United States or the District of Columbia, or a political 
subdivision thereof, or an Indian tribal government of 
subdivision thereof, and which generates electric energy for 
sale in, or affecting, interstate commerce using solar, wind, 
biomass, landfill gas, 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 date of enactment of this section] after October 1, 
2003, and before October 1, 2013.
    (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, landfill gas, or geothermal energy 
        during the payment period referred to in subsection (d) 
        of this section. 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 title 26, 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-fiscal year period 
beginning with the first full fiscal year occurring after the 
date of the enactment of this section] September 30, 2023, 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.]
    (g) Authorization of Appropriations.--
          (1) In general.--Subject to paragraph (2), there are 
        authorized to be appropriated such sums as may be 
        necessary to carry out this section for fiscal years 
        2003 through 2023.
          (2) Availability of Funds.--funds made available 
        under paragraph (1) shall remain available until 
        expended.

           *       *       *       *       *       *       *

                  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 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;
          [(4) the development of tribal legal and governmental 
        infras ructure 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 
        provi sion 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 para graph, 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 
Ito 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 four 
        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.
    [(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.
    [(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.
    [(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 non-Federal 
sources.
    [(e) Authorization of Appropriations.--There are authorized 
to appropriated such sums as are necessary for the development 
and implementation of the program established by this section.]

                        TITLE XXVI INDIAN ENERGY

SEC. 2601. DEFINITIONS.

    For purposes of this title:
          (1) The term ``Director'' means the Director of the 
        Office of Indian Energy Policy and Programs.
          (2) The term ``Indian land'' means
                  (A) any land located within the boundaries of 
                an Indian reservation, pueblo, or rancheria;
                  (B) any land not located within the 
                boundaries of an Indian reservation, pueblo, or 
                rancheria, the title to which is held--
                          (i) in trust by the United States for 
                        the benefit of an Indian tribe;
                          (ii) by an Indian tribe, subject to 
                        restriction by the United States 
                        against alienation; or
                          (iii) by a dependent Indian 
                        community; and
                  (C) land conveyed to a Native Corporation 
                under the Alaska Native Claims Settlement Act 
                (43 U.S.C. 1601 et seq.).
          (3) The term ``Indian reservation'' includes--
                  (A) an Indian reservation in existence in any 
                State or States as of the date of enactment of 
                this paragraph;
                  (B) a public domain Indian allotment;
                  (C) a former reservation in the State of 
                Oklahoma;
                  (D) a parcel of land owned by a Native 
                Corporation under the Alaska Native Claims 
                Settlement Act (43 U.S.C. 1601 et seq.); and
                  (E) a dependent Indian community located 
                within the borders of the United States, 
                regardless of whether the community is 
                located--
                          (i) on original or acquired territory 
                        of the community; or
                          (ii) within or outside the boundaries 
                        of any particular State.
          (4) The term ``Indian tribe'' has the meaning given 
        the term in section 4 of the Indian Self-Determination 
        and Education Assistance Act (25 U.S.C. 450b).
          (5) The term ``Native Corporation'' has the meaning 
        given the term in section 3 of the Alaska Native Claims 
        Settlement Act (43 U.S. C. 1602).
          (6) The term ``organization'' means a partnership, 
        joint venture, limited liability company, or other 
        unincorporated association or entity that is 
        established to develop Indian energy resources.
          (7) The term ``Program'' means the Indian energy 
        resource development program established under section 
        2602(a).
          (8) The term ``Secretary'' means the Secretary of the 
        Interior.
          (9) The term ``tribal consortium'' means an 
        organization that consists of 2 or more entities, at 
        least 1 of which is an Indian tribe.
          (10) The term ``tribal land'' means any land or 
        interests in land owned by any Indian tribe, band, 
        nation, pueblo, community, rancheria, colony or other 
        group, title to which is held in trust by the United 
        States or which is subject to a restriction against 
        alienation imposed by the United States.
          (11) The term ``vertical integration of energy 
        resources'' means any project or activity that promotes 
        the location and operation of a facility (including any 
        pipeline, gathering system, transportation system or 
        facility, or electric transmission facility), on or 
        near Indian land to process, refine, generate 
        electricity from, or otherwise develop energy resources 
        on, Indian land.

SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOPMENT.

    (a) In General.--To assist Indian tribes in the development 
of energy resources and further the goal of Indian self-
determination, the Secretary shall establish and implement an 
Indian energy resource development program to assist Indian 
tribes and tribal consortia in achieving the purposes of this 
title.
    (b) Grants and Loans.--In carrying out the Program, the 
Secretary shall--
          (1) provide development grants to Indian tribes and 
        tribal consortia for use in developing or obtaining the 
        managerial and technical capacity needed to develop 
        energy resources on Indian land;
          (2) provide grants to Indian tribes and tribal 
        consortia for use in carrying out projects to promote 
        the vertical integration of energy resources, and to 
        process, use, or develop those energy resources, on 
        Indian land; and
          (3) provide low-interest loans to Indian tribes and 
        tribal consortia for use in the promotion of energy 
        resource development and vertical integration or energy 
        resources on Indian land.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this section such sums as are 
necessary for each of fiscal years 2004 through 2014.

SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULATION.

    (a) Grants.--The Secretary may provide to Indian tribes and 
tribal consortia, on an annual basis, grants for use in 
developing, administering, implementing, and enforcing tribal 
laws (including regulations) governing the development and 
management of energy resources on Indian land.
    (b) Use of Funds.--Funds from a grant provided under this 
section may be used by an Indian tribe or tribal consortium 
for--
          (1) the development of a tribal energy resource 
        inventory or tribal energy resource on Indian land;
          (2) the development of a feasibility study or other 
        report necessary to the development of energy resources 
        on Indian land;
          (3) the development and enforcement of tribal laws 
        and the development of technical infrastructure to 
        protect the environment under applicable law; or
          (4) the training of employees that--
                  (A) are engaged in the development of energy 
                resources on Indian land; or
                  (B) are responsible for protecting the 
                environment.
    (c) Other Assistance.--To the maximum extent practicable, 
the Secretary and the Secretary of Energy shall make available 
to Indian tribes and tribal consortia scientific and technical 
data for use in the development and management of energy 
resources on Indian land.

SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS-OF-WAY INVOLVING 
                    ENERGY DEVELOPMENT OR TRANSMISSION.

    (a) Leases and Agreements.--Subject to the provisions of 
this section--
          (1) an Indian tribe may, at its discretion, enter 
        into a lease or business agreement for the purpose of 
        energy development, including a lease or business 
        agreement for--
                  (A) exploration for, extraction of, 
                processing of, or other development of energy 
                resources on tribal land; and
                  (B) construction or operation of an electric 
                generation, transmission, or distribution 
                facility located on tribal land; or a facility 
                to process or refine energy resources developed 
                on tribal land; and
          (2) a lease or business agreement described in 
        paragraph (1) shall not require the approval of the 
        Secretary under section 2103 of the Revised Statutes 
        (25 U.S.C. 81) or any other provision of law, if--
                  (A) the lease or business agreement is 
                executed in accordance with a tribal energy 
                resource agreement approved by the Secretary 
                under subsection (e);
                  (B) the term of the lease or business 
                agreement does not exceed--
                          (i) 30 years; or
                          (ii) in the case of a lease for the 
                        production of oil and gas resources, 10 
                        years and as long thereafter as oil or 
                        gas is produced in paying quantities; 
                        and
                  (C) the Indian tribe has entered into a 
                tribal energy resource agreement with the 
                Secretary, as described in subsection (e), 
                relating to the development of energy resources 
                on tribal land (including an annual trust asset 
                evaluation of the activities of the Indian 
                tribe conducted in accordance with the 
                agreement).
    (b) Rights-of-Way for Pipelines or Electric Transmission or 
Distribution Lines.--An Indian tribe may grant a right-of-way 
over tribal land for a pipeline or an electric transmission or 
distribution line without specific approval by the Secretary 
if--
          (1) the right-of-way is executed in accordance with a 
        tribal energy resource agreement approved by the 
        Secretary under subsection (e);
          (2) the term of the right-of-way does not exceed 30 
        years;
          (3) the pipeline or electric transmission or 
        distribution line serves--
                  (A) an electric generation, transmission, or 
                distribution facility located on tribal land; 
                or
                  (B) a facility located on tribal land that 
                processes or refines energy resources developed 
                on tribal land; and
          (4) the Indian tribe has entered into a tribal energy 
        resource agreement with the Secretary, as described in 
        subsection (e), relating to the development of energy 
        resources on tribal land (including an annual trust 
        asset evaluation of the activities of the Indian tribe 
        conducted in accordance with the agreement.
    (c) Renewals.--A lease or business agreement entered into 
or a right-of-way granted by an Indian tribe under this section 
may be renewed at the discretion of the Indian tribe in 
accordance with this section.
    (d) Validity.--No lease, business agreement, or right-of-
way under this section shall be valid unless the lease, 
business agreement, or right-of-way is authorized in accordance 
with tribal energy resource agreements approved by the 
Secretary under subsection (e).
    (e) Tribal Energy Resource Agreements.--
          (1) On promulgation of regulations under paragraph 
        (9), an Indian tribe may submit to the Secretary for 
        approval a tribal energy resource agreement governing 
        leases, business agreements, and rights-of-way under 
        this section.
          (2)(A) Not later than 180 days after the date on 
        which the Secretary receives a tribal energy resource 
        agreement submitted by an Indian tribe under paragraph 
        (1) (or such later date as may be agreed to by the 
        Secretary and the Indian tribe), the Secretary shall 
        approve or disapprove the tribal energy resource 
        agreement.
          (B) The Secretary shall approve a tribal energy 
        resource agreement submitted under paragraph (1) if--
                  (i) the Secretary determines that the Indian 
                tribe has demonstrated that the Indian tribe 
                has sufficient capacity to regulate the 
                development of energy resources of the Indian 
                tribe; and
                  (ii) the tribal energy resource agreement 
                includes provisions that, with respect to a 
                lease, business agreement, or right-of-way 
                under this section--
                          (I) ensure the acquisition of 
                        necessary information from the 
                        applicant for the lease, business 
                        agreement, or right-of-way;
                          (II) address the term of the lease or 
                        business agreement or the term of 
                        conveyance of the right-of-way;
                          (III) address amendments and 
                        renewals;
                          (IV) address consideration for the 
                        lease, business agreement, or right-of-
                        way;
                          (V) address technical or other 
                        relevant requirements;
                          (VI) establish requirements for 
                        environmental review in accordance with 
                        subparagraph (C);
                          (VII) ensure compliance with all 
                        applicable environmental laws;
                          (VIII) identify final approval 
                        authority;
                          (IX) provide for public notification 
                        of final approvals;
                          (X) establish a process for 
                        consultation with any affected States 
                        concerning potential off-reservation 
                        impacts associated with the lease, 
                        business agreement, or right-of-way; 
                        and
                          (XI) describe the remedies for breach 
                        of the lease, agreement, or right-of-
                        way.
          (C) Tribal energy resource agreements submitted under 
        paragraph (1) shall establish, and include provisions 
        to ensure compliance with, an environmental review 
        process that, with respect to a lease, business 
        agreement, or right-of-way under this section, provides 
        for--
                  (i) the identification and evaluation of all 
                significant environmental impacts (as compared 
                with a no-action alternative), including 
                effects on cultural resources;
                  (ii) the identification of proposed 
                mitigation;
                  (iii) a process for ensuring that the public 
                is informed of and has an opportunity to 
                comment on any proposed lease, business 
                agreement, or right-of-way before tribal 
                approval of the lease, business agreement, or 
                right-of-way (or any amendment to or renewal of 
                the lease, business agreement, or right-of-
                way); and
                  (iv) sufficient administrative support and 
                technical capability to carry out the 
                environmental review process.
          (D) A tribal energy resource agreement negotiated 
        between the Secretary and an Indian tribe in accordance 
        with this subsection shall include--
                  (i) provisions requiring the Secretary to 
                conduct an annual trust asset evaluation to 
                monitor the performance of the activities of 
                the Indian tribe associated with the 
                development of energy resources on tribal land 
                by the Indian tribe; and
                  (ii) in the case of a finding by the 
                Secretary of imminent jeopardy to a physical 
                trust asset, provisions authorizing the 
                Secretary to reassume responsibility for 
                activities associated with the development of 
                energy resources on tribal land.
          (3) The Secretary shall provide notice and 
        opportunity for public comment on tribal energy 
        resource agreements submitted under paragraph (1).
          (4) If the Secretary disapproves a tribal energy 
        resource agreement submitted by an Indian tribe under 
        paragraph (1), the Secretary shall--
                  (A) notify the Indian tribe in writing of the 
                basis for the disapproval;
                  (B) identify what changes or other actions 
                are required to address the concerns of the 
                Secretary; and
                  (C) provide the Indian tribe with an 
                opportunity to revise and resubmit the tribal 
                energy resource agreement.
          (5) If an Indian tribe executes a lease or business 
        agreement or grants a right-of-way in accordance with a 
        tribal energy resource agreement approved under this 
        subsection, the Indian tribe shall, in accordance with 
        the process and requirements set forth in the 
        Secretary's regulations adopted pursuant to subsection 
        (e)(9), provide to the Secretary--
                  (A) a copy of the lease, business agreement, 
                or right-of-way document (including all 
                amendments to and renewals of the document); 
                and
                  (B) in the case of a tribal energy resource 
                agreement or a lease, business agreement, or 
                right-of-way that permits payment to be made 
                directly to the Indian tribe, documentation of 
                those payments sufficient to enable the 
                Secretary to discharge the trust responsibility 
                of the United States as appropriate under 
                applicable law.
          (6) The Secretary shall continue to have a trust 
        obligation to ensure that the rights of an Indian tribe 
        are protected in the event of a violation of the terms 
        of any lease, business agreement or right-of-way by any 
        other party to the lease, business agreement, or right-
        of-way.
          (7)(A) The United States shall not be liable for any 
        loss or injury sustained by any party (including an 
        Indian tribe or any member of an Indian tribe) to a 
        lease, business agreement, or right-of-way executed in 
        accordance with tribal energy resource agreements 
        approved under this subsection.
          (B) On approval of a tribal energy resource agreement 
        of an Indian tribe under paragraph (1), the Indian 
        tribe shall be stopped from asserting a claim against 
        the United States on the ground that Secretary should 
        not have approved the Tribal energy resource agreement.
          (8)(A) In this paragraph, the term `interested party' 
        means any person or entity the interests of which have 
        sustained or will sustain a significant adverse impact 
        as a result of the failure of an Indian tribe to comply 
        with a tribal energy resource agreement of the Indian 
        tribe approved by the Secretary under paragraph (2).
          (B) After exhaustion of tribal remedies, and in 
        accordance with the process and requirements set forth 
        in regulations adopted by the Secretary pursuant to 
        subsection (e)(9), an interested party may submit to 
        the Secretary a petition to review compliance of an 
        Indian tribe with a tribal energy resource agreement of 
        the Indian tribe approved under this subsection.
          (C) If the Secretary determines that an Indian tribe 
        is not in compliance with a tribal energy resource 
        agreement approved under this subsection, the Secretary 
        shall take such action as is necessary to compel 
        compliance, including--
                  (i) suspending a lease, business agreement, 
                or right-of-way under this section until an 
                Indian tribe is in compliance with the approved 
                tribal energy resource agreement; and
                  (ii) rescinding approval of the tribal energy 
                resource agreement and reassuming the 
                responsibility for approval of any future 
                leases, business agreements, or rights-of-way 
                associated with an energy pipeline or 
                distribution line described in subsections (a) 
                and (b).
          (D) If the Secretary seeks to compel compliance of an 
        Indian tribe with an approved tribal energy resource 
        agreement under subparagraph (C)(ii), the Secretary 
        shall--
                  (i) make a written determination that 
                describes the manner in which the tribal energy 
                resource agreement has been violated;
                  (ii) provide the Indian tribe with a written 
                notice of the violation together with the 
                written determination; and
                  (iii) before taking any action described in 
                subparagraph (C)(ii) or seeking any other 
                remedy, provide the Indian tribe with a hearing 
                and a reasonable opportunity to attain 
                compliance with the tribal energy resource 
                agreement.
          (E)(i) An Indian tribe described in subparagraph (D) 
        shall retain all rights to appeal as provided in 
        regulations promulgated by the Secretary.
          (ii) The decision of the Secretary with respect to an 
        appeal described in clause (i), after any agency appeal 
        provided for by regulation, shall constitute a final 
        agency action.
          (9) Not later than 180 days after the date of 
        enactment of the Indian Tribal Energy Development and 
        Self-Determination Act of 2003, the Secretary shall 
        promulgate regulations that implement the provisions of 
        this subsection, including--
                  (A) criteria to be used in determining the 
                capacity of an Indian tribe described in 
                paragraph (2)(B)(i), including the experience 
                of the Indian tribe in managing natural 
                resources and financial and administrative 
                resources available for use by the Indian tribe 
                in implementing the approved tribal energy 
                resource agreement of the Indian tribe; and
                  (B) a process and requirements in accordance 
                with which an Indian tribe may--
                          (i) voluntarily rescind an approved 
                        tribal energy resource agreement 
                        approved by the Secretary under this 
                        subsection; and
                          (ii) return to the Secretary the 
                        responsibility to approve any future 
                        leases, business agreements, and 
                        rights-of-way described in this 
                        subsection.
    (f) No Effect on Other Law.--Nothing in this section 
affects the application of--
          (1) any Federal environmental law;
          (2) the Surface Mining Control and Reclamation Act of 
        1977 (30 U.S.C. 1201 et seq.); or
          (3) except as otherwise provided in this title, the 
        Indian Mineral Development Act of 1982 (25 US. C. 2101 
        et seq.).

SEC. 2605. FEDERAL POWER MARKETING ADMINISTRATIONS.

    (a) Definitions.--In this section:
          (1) The term ``Administrator'' means the 
        Administrator of the Bonneville Power Administration 
        and the Administrator of the Western Area Power 
        Administration.
          (2) The term ``power marketing administration `` 
        means--
                  (A) the Bonneville Power Administration;
                  (B) the Western Area Power Administration; 
                and
                  (C) any other power administration the power 
                allocation of which is used by or for the 
                benefit of an Indian tribe located in the 
                service area of the administration.
    (b) Encouragement of Indian Tribal Energy Development.--
Each Administrator shall encourage Indian tribal energy 
development by taking such actions as are appropriate, 
including administration of programs of the Bonneville Power 
Administration and the Western Area Power Administration, in 
accordance with this section.
    (c) Action by the Administrator.--In carrying out this 
section, and in accordance with existing law--
          (1) each Administrator shall consider the unique 
        relationship that exists between the United States and 
        Indian tribes.
          (2) power allocations from the Western Area Power 
        Administration to Indian tribes may be used to meet 
        firming and reserve needs of Indian-owned energy 
        projects on Indian land;
          (3) the Administrator of the Western Area Power 
        Administration may purchase power from Indian tribes to 
        meet the firming and reserve requirements of the 
        Western Area Power Administration; and
          (4) each Administrator shall not pay more than the 
        prevailing market price for an energy product nor 
        obtain less than prevailing market terms and 
        conditions.
    (d) Assistance for Transmission System Use.--
          (1) An Administrator may provide technical assistance 
        to Indian tribes seeking to use the high-voltage 
        transmission system for delivery of electric power.
          (2) The costs of technical assistance provided under 
        paragraph (1) shall be funded by the Secretary of 
        Energy using nonreimbursable funds appropriated for 
        that purpose, or by the applicable Indian tribes.
    (e) Power Allocation Study.--Not later than 2 years after 
the date of enactment of the Indian Tribal Energy Development 
and Self-Determination Act of 2003, the Secretary of Energy 
shall submit to the Congress a report that--
          (1) describes the use by Indian tribes of Federal 
        power allocations of the Western Area Power 
        Administration (or power sold by the Southwestern Power 
        Administration) and the Bonneville Power Administration 
        to or for the benefit of Indian tribes in service areas 
        of those administrations; and
          (2) identifies--
                  (A) the quantity of power allocated to Indian 
                tribes by the Western Area Power 
                Administration;
                  (B) the quantity of power sold to Indian 
                tribes by other power marketing 
                administrations; and
                  (C) barriers that impede tribal access to and 
                use of Federal power, including an assessment 
                of opportunities to remove those barriers and 
                improve the ability of power marketing 
                administrations to facilitate the use of 
                Federal power by Indian tribes.
    (f) Authorization of Appropriations.--There is authorized 
to be appropriated to carry out this section $750,000, which 
shall remain available until expended and shall not be 
reimbursable.

SEC 2606. INDIAN MINERAL DEVELOPMENT REVIEW.

    (a) In General.--The Secretary shall conduct a review of 
all activities being conducted under the Indian Mineral 
Development Act of 1982 (25 U.S.C. 2101 et seq.) as of that 
date.
    (b) Report.--Not later than 1 year after the date of 
enactment of the Indian Tribal Energy Development and Self-
Determination Act of 2003, the Secretary shall submit to the 
Congress a report that includes--
          (1) the results of the review;
          (2) recommendations to ensure that Indian tribes have 
        the opportunity to develop Indian energy resources; and
          (3) an analysis of the barriers to the development of 
        energy resources on Indian land (including legal, 
        fiscal, market, and other barriers), along with 
        recommendations for the removal of those barriers.

SEC 2607. WIND AND HYDROPOWER FEASIBILITY STUDY.

    (a) Study.--The Secretary, in coordination with the 
Secretary of the Army and the Secretary of the Interior, shall 
conduct a study of the cost and feasibility of developing a 
demonstration project that would use wind energy generated by 
Indian tribes and hydropower generated by the Army Corps of 
Engineers on the Missouri River to supply f rming power to the 
Western Area Power Administration.
    (b) Scope of Study.--The study shall--
          (1) determine the feasibility of the blending of wind 
        energy and hydropower generated from the Missouri River 
        dams operated by the Army Corps of Engineers;
          (2) review historical purchase requirements and 
        projected purchase requirements for firming and the 
        patterns of availability and use of firming energy;
          (3) assess the wind energy resource potential on 
        tribal land and projected cost savings through a blend 
        of wind and hydropower over a 30-year period;
          (4) determine seasonal capacity needs and associated 
        transmission upgrades for integration of tribal wind 
        generation; and
          (5) include an independent tribal engineer as a study 
        team member.
    (c) Report.--Not later than 1 year after the date of 
enactment of this Act, the Secretary and Secretary of the Army 
shall submit to Congress a report that describes the results of 
the study, including--
          (1) an analysis of the potential energy cost or 
        benefits to the customers of the Western Area Power 
        Administration through the blend of wind and 
        hydropower;
          (2) an evaluation of whether a combined wind and 
        hydropower system can reduce reservoir fluctuation, 
        enhance efficient and reliable energy production, and 
        provide Missouri River management flexibility;
          (3) recommendations for a demonstration project that 
        could be carried out by the Western Area Power 
        Administration in partnership with an Indian tribal 
        government or tribal consortium to demonstrate the 
        feasibility and potential of using wind energy produced 
        on Indian land to supply firming energy to the Western 
        Area Power Administration or any other Federal power 
        marketing agency; and
          (4) an identification of--
                  (A) the economic and environmental costs or 
                benefits to be realized through such a Federal-
                tribal partnership; and
                  (B) the manner in which such a partnership 
                could contribute to the energy security of the 
                United States.
    (d) Funding.--
          (1) There is authorized to be appropriated to carry 
        out this section $500,000, to remain available until 
        expended.
          (2) Costs incurred by the Secretary in carrying out 
        this section shall be nonreimbursable.

           *       *       *       *       *       *       *

                              ----------                              

                     HUD DEMONSTRATION ACT OF 1993

Public Law 103-120, as amended (42 U.S.C. 9816 note)

           *       *       *       *       *       *       *

SEC. 4. CAPACITY BUILDING FOR COMMUNITY DEVELOPMENT AND AFFORDABLE 
                    HOUSING

    (a) * * *
    (b) Form of Assistance.--Assistance under this section may 
be used for--
          (1) training, education, support, and advice to 
        enhance the technical and administrative capabilities 
        of community development corporations and community 
        housing development organizations, including 
        capabilities regarding the provision of energy 
        efficient, affordable housing and residential energy 
        conservation measures;
          (2) loans, grants, or predevelopment assistance to 
        community development corporations and community 
        housing development organizations to carry out 
        community development and affordable housing activities 
        that benefit low-income families, including such 
        activities relating to the provision of energy 
        efficient, affordable housing and residential energy 
        conservation measures that benefit low-income families.

           *       *       *       *       *       *       *

                              ----------                              

         NORTH AMERICAN FREE TRADE AGREEMENT IMPLEMENTATION ACT

 Part 2 of subtitle D of title V of Public Law 103-182 (22 U.S.C. 290m-
290m-3)

           *       *       *       *       *       *       *

SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.

    Consistent with the focus of the Bank's Charter on 
environmental infrastructure projects, the Board members 
representing the United States should use their voice and vote 
to encourage the Bank to finance projects related to clean and 
efficient energy, including energy conservation, that prevent, 
control, or reduce environmental pollutants or contaminants.

           *       *       *       *       *       *       *

                              ----------                              

                         USEC PRIVATIZATION ACT

   Subchapter A of chapter 1 of title III of Public Law 104-134, as 
amended (42 U.S.C. 2297h)

           *       *       *       *       *       *       *

SEC. 3112. URANIUM TRANSFERS AND SALES.

           *       *       *       *       *       *       *

    [(d) Inventory Sales.--(1) In addition to the transfers 
authorized under subsections (c) and (e), the Secretary may, 
from time to time, sell natural and low-enriched uranium 
(including low-enriched uranium derived from highly enriched 
uranium) from the Department of Energy's stockpile.
    [(2) Except as provided in subsections (b), (c), and (e), 
no sale or transfer of natural or low-enriched uranium shall be 
made unless
          [(A) the President determines that the material is 
        not necessary for national security needs,
          [(B) the Secretary determines that the sale of the 
        material will not have an adverse material impact on 
        the domestic uranium mining, conversion, or enrichment 
        industry, taking into account the sales of uranium 
        under the Russian HEU Agreement and the Suspension 
        Agreement, and
          [(C) the price paid to the Secretary will not be less 
        than the fair market value of the material.
    [(e) Government Transfers.--Notwithstanding subsection 
(d)(2), the Secretary may transfer or sell enriched uranium--
          [(1) to a Federal agency if the material is 
        transferred for the use of the receiving agency without 
        any resale or transfer to another entity and the 
        material does not meet commercial specifications;
          [(2) to any person for national security purposes, as 
        determined by the Secretary; or L(3) to any State or 
        local agency or nonprofit, charitable, or educational 
        institution for use other than the generation of 
        electricity for commercial use.]
    (d)(1)(A) The aggregate annual deliveries of uranium in any 
form (including natural uranium concentrates, natural uranium 
hexa
fluoride, enriched uranium, and depleted uranium) sold or 
transferred for commercial nuclear power end uses by the United 
States Government shall not exceed 3,000,000 pounds 
U3O8 equivalent per year through calendar year 2009. 
Such aggregate annual deliveries shall not exceed 5,000,000 
pounds U3O8 equivalent per year in calendar years 
2010 and 2011. Such aggregate annual deliveries shall not 
exceed 7,000,000 pounds U3O8 equivalent in calendar 
year 2012. Such aggregate annual deliveries shall not exceed 
10,000,000 pounds U3O8 equivalent per year in 
calendar year 2013 and each year thereafter. Any sales or 
transfers by the United States Government to commercial end 
users shall be limited to long-term contracts of no less than 3 
years duration.
    (B) The recovery and extraction of the uranium component 
from contaminated uranium bearing materials from United States 
Government sites by commercial entities shall be the preferred 
method of making uranium available under this subsection. The 
uranium component contained in such contaminated materials 
shall be counted against the annual maximum deliveries set 
forth in this section, provided that uranium is sold to end 
users.
    (C) Sales or transfers of uranium by the United States 
Government for the following purposes are exempt from the 
provisions of this subsection--
          (i) sales or transfers provided for under existing 
        law for use by the Tennessee Valley Authority in 
        relation to the Department of Energy's high-enriched 
        uranium or tritium programs;
          (ii) sales or transfers to the Department of Energy 
        research reactor sales program;
          (iii) the transfer of up to 3,293 metric tons of 
        uranium to the United States Enrichment Corporation to 
        replace uranium that the Secretary transferred, prior 
        to privatization of the United States Enrichment 
        Corporation in July 1998, to the Corporation on or 
        about June 30, 1993, April 20, 1998, and May 18, 1998, 
        and that does not meet commercial specifications;
          (iv) the sale or transfer of any uranium for 
        emergency purposes in the event of a disruption in 
        supply to end users in the United States;
          (v) the sale or transfer of any uranium in 
        fulfillment of the United States Government's 
        obligations to provide security of supply with respect 
        to implementation of the Russian HEU Agreement; and
          (vi) the sale or transfer of any enriched uranium for 
        use in an advanced commercial nuclear power plant in 
        the United States with nonstandard fuel requirements.
    (D) The Secretary may transfer or sell enriched uranium to 
any person for national security purposes, as determined by the 
Secretary.
      (2) Except as provided in subsections (b) and (c), and in 
paragraph (1)(B) and (C) of this subsection, no sale or 
transfer of uranium in any form shall be made by the United 
States Government unless--
          (A) the President determines that the material is not 
        necessary for national security needs;
          (B) the price paid to the Secretary will not be less 
        than the fair market value of the material, as 
        determined at the time that such material is contracted 
        for sale;
          (C) prior to any sale or transfer, the Secretary 
        solicits the written views of the Department of State 
        and the National Security Council with regard to 
        whether such sale or transfer would have any adverse 
        effect on national security interests of the United 
        States, including interests related to the 
        implementation of the Russian HEU Agreement; and
                  (D) neither the Department of State nor the 
                National Security Council objects to such sale 
                or transfer.
The Secretary shall endeavor to determine whether a sale or 
transfer is permitted under this paragraph within 30 days. The 
Secretary's determinations pursuant to this paragraph shall be 
made available to interested members of the public prior to 
authorizing any such sale or transfer.
      (3) Within 1 year after the date of enactment of this 
subsection and annually thereafter the Secretary shall 
undertake an assessment for the purpose of reviewing available 
excess Government uranium inventories, and determining, 
consistent with the procedures and limitations established in 
this subsection, the level of inventory to be sold or 
transferred to end users.
    (4) Within 5 years after the date of enactment of this 
subsection and biennially thereafter the Secretary shall report 
to the Congress on the implementation of this subsection. The 
report shall include a discussion of all sales or transfers 
made by the United States Government, the impact of such sales 
or transfers on the domestic uranium industry, the spot market 
uranium price, and the national security interests of the 
United States, and any steps taken to remediate any adverse 
impacts of such sales or transfers.
    (5) For purposes of this subsection, the term ``United 
States Government'' does not include the Tennessee Valley 
Authority.
                              ----------                              --
--------

 NATIVE AMERICAN HOUSING ASSISTANCE AND SELF-DETERMINATION ACT OF 1996

    Public Law 104-330, as amended (25 U.S.C. 4101 et seq.)

           *       *       *       *       *       *       *

SEC. 202. ELIGIBLE AFFORDABLE HOUSING ACTIVITIES.

    Affordable housing activities under this title are 
activities, in accordance with the requirements of this title, 
to develop or to support affordable housing for rental or 
homeownership, or to provide housing services with respect to 
affordable housing, through the following activities:
          (1) * * *
    (2) Development.--The acquisition, new construction, 
reconstruction, or moderate or substantial rehabilitation of 
affordable housing, which may include real property 
acquisition, site improvement, development of utilities and 
utility services, conversion, demolition, financing, 
administration and planning, improvement to achieve greater 
energy efficiency, and other related activities.

           *       *       *       *       *       *       *

                              ----------                              

              LEGISLATIVE BRANCH APPROPRIATIONS ACT, 1999

Public Law 105-275 (2 U.S.C. 1815)

           *       *       *       *       *       *       *

    [Sec. 310. Energy conservation and management
    The Architect of the Capitol--
          (1) shall develop and implement a cost-effective 
        energy conservation strategy for all facilities 
        currently administered by Congress to achieve a net 
        reduction of 20 percent in energy consumption on the 
        congressional campus compared to fiscal year 1991 
        consumption levels on a Btu-per-gross-square-foot basis 
        not later than 7 years after October 21, 1998;
          (2) shall submit to Congress no later than 10 months 
        after October 21, 1998, a comprehensive energy 
        conservation and management plan which includes life 
        cycle costs methods to determine the cost-effectiveness 
        of proposed energy efficiency projects;
          (3) shall submit to the Committee on Appropriations 
        in the Senate and the House of Representatives a 
        request for the amount of appropriations necessary to 
        carry out this section;
          (4) shall present to Congress annually a report on 
        congressional energy management and conservation 
        programs which details energy expenditures for each 
        facility, energy management and conservation projects, 
        and future priorities to ensure compliance with the 
        requirements of this section;
          (5) shall perform energy surveys of all congressional 
        buildings and update such surveys as needed;
          (6) shall use such surveys to determine the cost and 
        payback period of energy and water conservation 
        measures likely to achieve the required energy 
        consumption levels;
          (7) shall install energy and water conservation 
        measures that will achieve the requirements through 
        previously determined life cycle cost methods and 
        procedures;
          (8) may contract with nongovernmental entities and 
        employ private sector capital to finance energy 
        conservation projects and achieve energy consumption 
        targets;
          (9) may develop innovative contracting methods that 
        will attract private sector funding for the 
        installation of energy-efficient and renewable energy 
        technology to meet the requirements of this section;
          (10) may participate in the Department of Energy's 
        Financing Renewable Energy and Efficiency (FREE 
        Savings) contracts program for Federal Government 
        facilities; and
          (11) shall produce information packages and ``how-
        to'' guides for each Member and employing authority of 
        the Congress that detail simple, cost-effective methods 
        to save energy and taxpayer dollars.]

           *       *       *       *       *       *       *

                           ENERGY ACT OF 2000

Public Law 106-469 (42 U.S.C. 6217)

           *       *       *       *       *       *       *

SEC. 604. SCIENTIFIC INVENTORY OF OIL AND GAS RESERVES.

    [(a) In General.--The Secretary of the Interior, in 
consultation with the Secretaries of Agriculture and Energy, 
shall conduct an inventory of all onshore Federal lands. The 
inventory shall identify--
          [(1) the United States Geological Survey reserve 
        estimates of the oil and gas resources underlying these 
        lands; and
          [(2) the extent and nature of any restrictions or 
        impediments to the development of such resources.
    [(b) Regular Update.--Once completed, the USGS reserve 
estimates and the surface availability data as provided in 
subsection (a)(2) shall be regularly updated and made publicly 
available.
    [(c) Inventory.--The inventory shall be provided to the 
Committee on Resources of the House of Representatives and to 
the Committee on Energy and Natural Resources of the Senate 
within 2 years after the date of the enactment of this section.
    [(d) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to implement 
this section.]
    (a) In General.--The Secretary of the Interior, in 
consultation with the Secretaries of Agriculture and Energy, 
shall conduct an inventory of all onshore Federal lands and 
take measures necessary to update and revise this inventory. 
The inventory shall identify for all federal lands--
          (1) the United States Geological Survey estimates of 
        the oil and gas resources underlying these lands;
          (2) the extent and nature of any restrictions or 
        impediments to the exploration, production and 
        transportation of such resources, including--
                  (A) existing land withdrawals and the 
                underlying purpose for each withdrawal;
                  (B) restrictions or impediments affecting 
                timeliness of granting leases;
                  (C) post-lease restrictions or impediments 
                such as conditions of approval, applications 
                for permits to drill, applicable environmental 
                permits;
                  (D) permits or restrictions associated with 
                transporting the resources; and
                  (E) identification of the authority for each 
                restriction or impediment together with the 
                impact on additional processing or review time 
                and potential remedies; and
          (3) the estimates of oil and gas resources not 
        available for exploration and production by virtue of 
        the restrictions identified above.
    (b) Reports.--The Secretary shall provide a progress report 
to the Congress by October 1, 2006 and shall complete the 
inventory by October 1, 2010.
    (c) Authorization of Appropriations.--There are authorized 
to be appropriated such sums as may be necessary to implement 
this section.
                              ----------                              --
--------

                      TITLE 5, UNITED STATES CODE

Sec. 5314. Positions at Level III.
      * * * * * * *
    Chairman, Consumer Product Safety Commission.
    [Under Secretaries of Energy (2)] Under Secretaries of Energy (3).
    Chairman, Commodity Futures Trading Commission.
     * * * * *
Sec. 5315. Positions at Level IV.
     * * * * *
    Director, Bureau of Prisons, Department of Justice.
    [Assistant Secretaries of Energy (6)] Assistant Secretaries of 
              Energy (8).
    General Counsel of the Department of Energy.
    Administrator, Economic Regulatory Administration, Department of 
              Energy. Administrator, Energy Information Administration, 
              Department of Energy. Inspector General, Department of 
              Energy.
    Director, Office of Indian Energy Policy and Programs, Department of 
              Energy.
    Director, Office of Electric Transmission and Distribution, 
              Department of Energy.
    [Director, Office of Science, Department of Energy.]
    Assistant Secretary of Labor for Mine Safety and Health.
                    ----------__________________________________________

TITLE 23, UNITED STATE CODE

           *       *       *       *       *       *       *

HIGHWAYS

           *       *       *       *       *       *       *

CHAPTER 1. FEDERAL-AID HIGHWAYS

           *       *       *       *       *       *       *

Subchapter I. General Provisions

           *       *       *       *       *       *       *

        Sec. 127. Vehicle weight limitations--Interstate System

    (a) * * * and are applicable to State highways other than 
the Interstate System, shall be applicable in lieu of the 
requirements of this subsection. In order to promote reduction 
of fuel use and emissions due to engine idling, the maximum 
gross vehicle weight limit and the axle weight limit for any 
motor vehicle equipped with an idling reduction technology 
certified by the U.S. Department of Energy will be increased by 
an amount necessary to compensate for the additional weight of 
the idling reduction system, provided that the weight increase 
shall be no greater than 400 pounds.
                              ----------                              --
--------

                      TITLE 49, UNITED TATES CODE

Subtitle VI--Motor Vehicle and Driver Programs

           *       *       *       *       *       *       *

PART C--INFORMATION, STANDARDS, AND REQUIREMENTS

           *       *       *       *       *       *       *

CHAPTER 329--AUTOMOBILE FUEL ECONOMY

           *       *       *       *       *       *       *

Sec. 32902. Average fuel economy standards

    (a) * * *
    (b) Passenger Automobiles.--Except as provided in this 
section, the average fuel economy standard for passenger 
automobiles manufactured by a manufacturer in a model year 
after model year 1984 shall be 27.5 miles a gallon or other 
such number as the Secretary prescribes under subsection (c).

           *       *       *       *       *       *       *

    [(f) Considerations on Decisions on Maximum Feasible 
Average Fuel Economy.--When deciding maximum feasible average 
fuel economy under this section, the Secretary of 
Transportation shall consider technological feasibility, 
economic practicability, the effect of other motor vehicle 
standards of the Government on fuel economy, and the need of 
the United States to conserve energy.]
    (f) Considerations.--When deciding maximum feasible average 
fuel economy under this section, the Secretary of 
Transportation shall consider the following matters:
          (1) technological feasibility;
          (2) economic practicability;
          (3) the effect of other motor vehicle standards of 
        the Government on fuel economy;
          (4) the need of the United States to conserve energy;
          (5) the effects of fuel economy standards on motor 
        vehicle and passenger safety; and
          (6) the effects of compliance with average fuel 
        economy standards on levels of employment in the United 
        States.

           *       *       *       *       *       *       *

Sec. 32905. Manufacturing incentives for alternative fuel automobiles

    (a) * * *
    (b) Dual Fueled Automobiles.--Except as provided in 
subsection (d) of this section or section 32904 (a)(2) of this 
title, for any model of dual fueled automobile manufactured by 
a manufacturer in model years [1993-2004] 1993-2008, the 
Administrator of the Environmental Protection Agency shall 
measure the fuel economy for that model by dividing 1.0 by the 
sum of--

           *       *       *       *       *       *       *

    (d) Gaseous Fuel Dual Fueled Automobiles.--For any model of 
gaseous fuel dual fueled automobile manufactured by a 
manufacturer in model years [1993-2004] 1993-2003, the 
Administrator shall measure the fuel economy for that model by 
dividing 1.0 by the sum of--

           *       *       *       *       *       *       *

    (f) Extending Application of Subsections (B) and (D).--Not 
later than December 31, [2001] 2005, the Secretary of 
Transportation shall--
          (1) extend by regulation the application of 
        subsections (b) and (d) of this section for not more 
        than 4 consecutive model years immediately after model 
        year [2004] 2008 and explain the basis on which the 
        extension is granted; or
          (2) * * *
    (g) Study and Report.--Not later than [September 30, 2000] 
September 30, 2004, the Secretary of Transportation, in 
consultation with the Secretary of Energy and the 
Administrator, shall complete a study of the success of the 
policy of subsections (b) and (d) of this title, and submit to 
the Committees on Commerce, Science, and Transportation and 
Governmental Affairs of the Senate and the Committee on 
Commerce of the House of Representatives a report on the 
results of the study, including preliminary conclusions on 
whether the application of subsections (b) and (d) should be 
extended for up to 4 more model years. * * *

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Sec. 32906. Maximum fuel economy increase for alternative fuel 
                    automobiles

    (a) Maximum Increases.--(1)(A) For each of [the model years 
1993-2004] model years 1993-2008 for each category of 
automobile (except an electric automobile), the maximum 
increase in average fuel economy for a manufacturer 
attributable to dual fueled automobiles is 1.2. miles a gallon.
    (B) If the application of section 32905(b) and (d) of this 
title is extended under section 32905(f) of this title, for 
each category of automobile (except an electric automobile) the 
maximum increase in average fuel economy for a manufacturer for 
each of [the model years 2005-2008] model years 2009-2012 
attributable to dual fueled automobiles is .9 mile a gallon.

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Sec. 32917. Standards for executive agency automobiles

    [(a) Definition. In this section, ``executive agency'' has 
the same meaning given that term in section 105 of title 5.
    [(b) Fleet Average Fuel Economy.
          [(1) The President shall prescribe regulations that 
        require passenger automobiles leased for at least 60 
        consecutive days or bought by executive agencies in a 
        fiscal year to achieve a fleet average fuel economy 
        (determined under paragraph (2) of this subsection) for 
        that year of at least the greater of--
                  [(A) 18 miles a gallon; or
                  [(B) the applicable average fuel economy 
                standard under section 32902(b) or (c) of this 
                title for the model year that includes January 
                1 of that fiscal year.
          [(2) Fleet average fuel economy is--
                  [(A) the total number of passenger 
                automobiles leased for at least 60 consecutive 
                days or bought by executive agencies in a 
                fiscal year (except automobiles designed for 
                combat-related missions, law enforcement work, 
                or emergency rescue work); divided by
                  [(B) the sum of the fractions obtained by 
                dividing the number of automobiles of each 
                model leased or bought by the fuel economy of 
                that model.]
    (a) Baseline Average Fuel Economy.--The head of each 
executive agency shall determine, for all automobiles in the 
agency's fleet of automobiles that were leased or bought as a 
new vehicle in fiscal year 1999, the average fuel economy for 
such automobiles. For the purposes of this section, the average 
fuel economy so determined shall be the baseline average fuel 
economy for the agency's fleet of automobiles.
    (b) Increase of Average Fuel Economy.--The head of an 
executive agency shall manage the procurement of automobiles 
for that agency in such a manner that not later than September 
30, 2005, the average fuel economy of the new automobiles in 
the agency's fleet of automobiles is not less than 3 miles per 
gallon higher than the baseline average fuel economy determined 
under subsection (a) for that fleet.
    (c) Calculation of Average Fuel Economy.--Average fuel 
economy shall be calculated for the purposes of this section in 
accordance with guidance which the Secretary of Transportation 
shall prescribe for the implementation of this section.
    (d) Definitions.--In this section:
          (1) The term ``automobile'', does not include any 
        vehicle designed for combat-related missions, law 
        enforcement work, or emergency rescue work.
          (2) The term ``executive agency'' has the meaning 
        given that term in section 105 of title 5.
          (3) The term ``new automobile'', with respect to the 
        fleet of automobiles of an executive agency, means an 
        automobile that is leased for at least 60 consecutive 
        days or bought, by or for the agency, after September 
        30, 1999.''.

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