I 

109TH CONGRESS 

1ST SESSION H. R. 1640

To ensure jobs for our future with secure and reliable energy. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 14, 2005

Mr. BARTON of Texas (for himself, Mr. HALL, Mr. UPTON, Mr. STEARNS, 

Mrs. CUBIN, Mr. SHIMKUS, Mr. PICKERING, Mr. BLUNT, Mr. BUYER, 

Mr. RADANOVICH, Mr. PITTS, Mr. TERRY, and Mr. ROGERS of Michigan) 

introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committees on Science, Resources, Education and the Workforce, Transportation and Infrastructure, Financial Services, and Agriculture, for a period to be subsequently 

determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned 

A BILL

To ensure jobs for our future with secure and reliable energy.

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

3 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 

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

5 ‘‘Energy Policy Act of 2005’’. 

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

7 the bill is as follows:

Sec. 1. Short title; table of contents. 
2

•HR 1640 IH 

TITLE I—ENERGY EFFICIENCY 

Subtitle A—Federal Programs 

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

Sec. 102. Energy management requirements. 

Sec. 103. Energy use measurement and accountability. 

Sec. 104. Procurement of energy efficient products. 

Sec. 105. Energy Savings Performance Contracts. 

Sec. 107. Voluntary commitments to reduce industrial energy intensity. 

Sec. 108. Advanced Building Efficiency Testbed. 

Sec. 109. Federal building performance standards. 

Sec. 110. Daylight savings. 

Subtitle B—Energy Assistance and State Programs 

Sec. 121. Low Income Home Energy Assistance Program. 

Sec. 122. Weatherization assistance. 

Sec. 123. State energy programs. 

Sec. 124. Energy efficient appliance rebate programs. 

Sec. 125. Energy efficient public buildings. 

Sec. 126. Low income community energy efficiency pilot program. 

Subtitle C—Energy Efficient Products 

Sec. 131. Energy Star Program. 

Sec. 132. HVAC maintenance consumer education program. 

Sec. 133. Energy conservation standards for additional products. 

Sec. 134. Energy labeling. 

Sec. 135. Preemption. 

Sec. 136. State consumer product energy efficiency standards. 

Subtitle D—Public Housing 

Sec. 145. Grants for energy-conserving improvements for assisted housing. 

Sec. 147. Energy-efficient appliances. 

Sec. 149. Energy strategy for HUD. 

TITLE II—RENEWABLE ENERGY 

Subtitle A—General Provisions 

Sec. 201. Assessment of renewable energy resources. 

Sec. 202. Renewable energy production incentive. 

Sec. 203. Federal purchase requirement. 

Sec. 204. Insular areas energy security. 

Sec. 205. Use of photovoltaic energy in public buildings. 

Sec. 206. Grants to improve the commercial value of forest biomass for electric 

energy, useful heat, transportation fuels, petroleum-based product substitutes, and other commercial purposes. 

Sec. 207. Biobased products. 

Sec. 208. Renewable energy security. 

Subtitle C—Hydroelectric 

PART I—ALTERNATIVE CONDITIONS

Sec. 231. Alternative conditions and fishways. 
3

•HR 1640 IH 

PART II—ADDITIONAL HYDROPOWER

Sec. 241. Hydroelectric production incentives. 

Sec. 242. Hydroelectric efficiency improvement. 

Sec. 243. Small hydroelectric power projects. 

Sec. 244. Increased hydroelectric generation at existing Federal facilities. 

Sec. 245. Shift of project loads to off-peak periods. 

TITLE III—OIL AND GAS 

Subtitle A—Petroleum Reserve and Home Heating Oil 

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

other energy programs. 

Sec. 302. National Oilheat Research Alliance. 

Sec. 303. Site selection. 

Sec. 304. Suspension of Strategic Petroleum Reserve deliveries. 

Subtitle B—Production Incentives 

Sec. 320. Liquefaction or gasification natural gas terminals. 

Sec. 327. Hydraulic fracturing. 

Sec. 330. Appeals relating to pipeline construction or offshore mineral development projects. 

Sec. 333. Natural gas market transparency. 

Subtitle C—Access to Federal Land 

Sec. 344. Consultation regarding oil and gas leasing on public land. 

Sec. 346. Compliance with executive order 13211; actions concerning regulations that significantly affect energy supply, distribution, or 

use. 

Sec. 350. Energy facility rights-of-way and corridors on Federal land. 

Sec. 355. Encouraging Great Lakes oil and gas drilling ban. 

Sec. 358. Federal coalbed methane regulation. 

Subtitle D—Refining Revitalization 

Sec. 371. Short title. 

Sec. 372. Findings. 

Sec. 373. Purpose. 

Sec. 374. Designation of Refinery Revitalization Zones. 

Sec. 375. Memorandum of understanding. 

Sec. 376. State environmental permitting assistance. 

Sec. 377. Coordination and expeditious review of permitting process. 

Sec. 378. Compliance with all environmental regulations required. 

Sec. 379. Definitions. 

TITLE IV—COAL 

Subtitle A—Clean Coal Power Initiative 

Sec. 401. Authorization of appropriations. 

Sec. 402. Project criteria. 

Sec. 403. Report. 

Sec. 404. Clean Coal Centers of Excellence. 

Subtitle B—Clean Power Projects 
4

•HR 1640 IH 

Sec. 411. Coal technology loan. 

Sec. 412. Coal gasification. 

Sec. 414. Petroleum coke gasification. 

Sec. 416. Electron scrubbing demonstration. 

Subtitle D—Coal and related programs 

Sec. 441. Clean air coal program. 

TITLE V—INDIAN ENERGY 

Sec. 501. Short title. 

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

Sec. 503. Indian energy. 

Sec. 504. Four Corners transmission line project. 

Sec. 505. Energy efficiency in federally assisted housing. 

Sec. 506. Consultation with Indian tribes. 

TITLE VI—NUCLEAR MATTERS 

Subtitle A—Price-Anderson Act Amendments 

Sec. 601. Short title. 

Sec. 602. Extension of indemnification authority. 

Sec. 603. Maximum assessment. 

Sec. 604. Department of Energy liability limit. 

Sec. 605. Incidents outside the United States. 

Sec. 606. Reports. 

Sec. 607. Inflation adjustment. 

Sec. 608. Treatment of modular reactors. 

Sec. 609. Applicability. 

Sec. 610. Prohibition on assumption by United States Government of liability 

for certain foreign incidents. 

Sec. 611. Civil penalties. 

Sec. 612. Financial accountability. 

Subtitle B—General Nuclear Matters 

Sec. 621. Licenses. 

Sec. 622. NRC training program. 

Sec. 623. Cost recovery from government agencies. 

Sec. 624. Elimination of pension offset. 

Sec. 625. Antitrust review. 

Sec. 626. Decommissioning. 

Sec. 627. Limitation on legal fee reimbursement. 

Sec. 629. Report on feasibility of developing commercial nuclear energy generation facilities at existing Department of Energy sites. 

Sec. 630. Uranium sales. 

Sec. 631. Cooperative research and development and special demonstration 

projects for the uranium mining industry. 

Sec. 632. Whistleblower protection. 

Sec. 633. Medical isotope production. 

Sec. 634. Fernald byproduct material. 

Sec. 635. Safe disposal of greater-than-class c radioactive waste. 

Sec. 636. Prohibition on nuclear exports to countries that sponsor terrorism. 

Sec. 638. National uranium stockpile. 

Sec. 639. Nuclear Regulatory Commission meetings. 
5

•HR 1640 IH 

Sec. 640. Employee benefits. 

Subtitle C—Additional hydrogen production provisions 

Sec. 651. Hydrogen production programs. 

Sec. 652. Definitions. 

Subtitle D—Nuclear Security 

Sec. 661. Nuclear facility threats. 

Sec. 662. Fingerprinting for criminal history record checks. 

Sec. 663. Use of firearms by security personnel of licensees and certificate holders of the Commission. 

Sec. 664. Unauthorized introduction of dangerous weapons. 

Sec. 665. Sabotage of nuclear facilities or fuel. 

Sec. 666. Secure transfer of nuclear materials. 

Sec. 667. Department of Homeland Security consultation. 

Sec. 668. Authorization of appropriations. 

TITLE VII—VEHICLES AND FUELS 

Subtitle A—Existing Programs 

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

Sec. 704. Incremental cost allocation. 

Sec. 705. Lease condensates. 

Sec. 706. Review of Energy Policy Act of 1992 programs. 

Sec. 707. Report concerning compliance with alternative fueled vehicle purchasing requirements. 

Subtitle B—Hybrid vehicles, advanced vehicles, and fuel cell buses 

PART 1—HYBRID VEHICLES

Sec. 711. Hybrid vehicles. 

Sec. 712. Hybrid retrofit and electric conversion program. 

PART 2—ADVANCED VEHICLES

Sec. 721. Definitions. 

Sec. 722. Pilot program. 

Sec. 723. Reports to Congress. 

Sec. 724. Authorization of appropriations. 

PART 3—FUEL CELL BUSES

Sec. 731. Fuel cell transit bus demonstration. 

Subtitle C—Clean School Buses 

Sec. 741. Definitions. 

Sec. 742. Program for replacement of certain school buses with clean school 

buses. 

Sec. 743. Diesel retrofit program. 

Sec. 744. Fuel cell school buses. 

Subtitle D—Miscellaneous 

Sec. 751. Railroad efficiency. 
6

•HR 1640 IH 

Sec. 752. Mobile emission reductions trading and crediting. 

Sec. 753. Aviation fuel conservation and emissions. 

Sec. 754. Diesel fueled vehicles. 

Sec. 757. Biodiesel engine testing program. 

Sec. 759. Ultra-efficient engine technology for aircraft. 

Subtitle E—Automobile Efficiency 

Sec. 771. Authorization of appropriations for implementation and enforcement 

of fuel economy standards. 

Sec. 772. Revised considerations for decisions on maximum feasible average 

fuel economy. 

Sec. 773. Extension of maximum fuel economy increase for alternative fueled 

vehicles. 

Sec. 774. Study of feasibility and effects of reducing use of fuel for automobiles. 

TITLE VIII—HYDROGEN 

Sec. 801. Definitions. 

Sec. 802. Plan. 

Sec. 803. Programs. 

Sec. 804. Interagency task force. 

Sec. 805. Advisory Committee. 

Sec. 806. External review. 

Sec. 807. Miscellaneous provisions. 

Sec. 808. Savings clause. 

Sec. 809. Authorization of appropriations. 

Sec. 810. Solar and wind technologies. 

TITLE IX—STUDIES AND PROGRAM SUPPORT 

Sec. 901. Goals. 

Sec. 902. Definitions. 

Subtitle A—Energy Efficiency 

Sec. 904. Energy efficiency. 

Sec. 905. Next Generation Lighting Initiative. 

Sec. 906. National Building Performance Initiative. 

Sec. 907. Secondary electric vehicle battery use program. 

Sec. 908. Energy efficiency study initiative. 

Sec. 909. Electric motor control technology. 

Subtitle B—Distributed Energy and Electric Energy Systems 

Sec. 911. Distributed energy and electric energy systems. 

Sec. 913. High power density industry program. 

Sec. 916. Reciprocating power. 

Sec. 917. Advanced portable power devices. 

Subtitle C—Renewable Energy 

Sec. 918. Renewable energy. 

Sec. 919. Bioenergy programs. 

Sec. 920. Concentrating solar power study program. 

Sec. 921. Miscellaneous projects. 

Sec. 922. Renewable energy in public buildings. 
7

•HR 1640 IH 

Sec. 923. University biodiesel program. 

Subtitle D—Nuclear energy 

Sec. 929. Alternatives to industrial radioactive sources. 

Sec. 930. Geological isolation of spent fuel. 

Subtitle E—Fossil Energy 

PART I—STUDIES AND PROGRAM SUPPORT

Sec. 931. Fossil energy. 

Sec. 932. Oil and gas studies. 

Sec. 933. Technology transfer. 

Sec. 934. Coal mining technologies. 

Sec. 935. Coal and related technologies program. 

Sec. 936. Complex Well Technology Testing Facility. 

PART II—ULTRA-DEEPWATER AND UNCONVENTIONAL NATURAL GAS AND

OTHER PETROLEUM RESOURCES

Sec. 941. Program authority. 

Sec. 942. Ultra-deepwater Program. 

Sec. 943. Unconventional natural gas and other petroleum resources Program. 

Sec. 944. Additional requirements for awards. 

Sec. 945. Advisory committees. 

Sec. 946. Limits on participation. 

Sec. 947. Sunset. 

Sec. 948. Definitions. 

Sec. 949. Funding. 

Subtitle F—Energy Sciences 

Sec. 953. Plan for Fusion Energy Sciences Program. 

Sec. 954. Spallation Neutron Source. 

Sec. 962. Nitrogen fixation. 

Subtitle G—Energy and Environment 

Sec. 966. Waste reduction and use of alternatives. 

Sec. 967. Report on fuel cell test center. 

Sec. 968. Arctic Engineering Research Center. 

Sec. 970. Western Michigan demonstration project. 

Sec. 971. Low-cost hydrogen propulsion and infrastructure. 

Sec. 972. Carbon-based fuel cell development. 

Subtitle H—International Cooperation 

Sec. 981. United States-Israel cooperation. 

TITLE X—DEPARTMENT OF ENERGY MANAGEMENT 

Sec. 1001. Additional Assistant Secretary position. 

Sec. 1002. Other transactions authority. 

Sec. 1003. University collaboration. 

Sec. 1004. Sense of Congress. 

TITLE XII—ELECTRICITY 
8

•HR 1640 IH 

Sec. 1201. Short title. 

Subtitle A—Reliability Standards 

Sec. 1211. Electric reliability standards. 

Subtitle B—Transmission Infrastructure Modernization 

Sec. 1221. Siting of interstate electric transmission facilities. 

Sec. 1222. Third-party finance. 

Sec. 1223. Transmission system monitoring. 

Sec. 1224. Advanced transmission technologies. 

Sec. 1225. Electric transmission and distribution programs. 

Sec. 1226. Advanced Power System Technology Incentive Program. 

Sec. 1227. Office of Electric Transmission and Distribution. 

Subtitle C—Transmission Operation Improvements 

Sec. 1231. Open nondiscriminatory access. 

Sec. 1232. Sense of Congress on Regional Transmission Organizations. 

Sec. 1233. Regional Transmission Organization applications progress report. 

Sec. 1234. Federal utility participation in Regional Transmission Organizations. 

Sec. 1235. Standard market design. 

Sec. 1236. Native load service obligation. 

Sec. 1237. Study on the benefits of economic dispatch. 

Subtitle D—Transmission Rate Reform 

Sec. 1241. Transmission infrastructure investment. 

Subtitle E—Amendments to PURPA 

Sec. 1251. Net metering and additional standards. 

Sec. 1252. Smart metering. 

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

Sec. 1254. Interconnection. 

Subtitle F—Repeal of PUHCA 

Sec. 1261. Short title. 

Sec. 1262. Definitions. 

Sec. 1263. Repeal of the Public Utility Holding Company Act of 1935. 

Sec. 1264. Federal access to books and records. 

Sec. 1265. State access to books and records. 

Sec. 1266. Exemption authority. 

Sec. 1267. Affiliate transactions. 

Sec. 1268. Applicability. 

Sec. 1269. Effect on other regulations. 

Sec. 1270. Enforcement. 

Sec. 1271. Savings provisions. 

Sec. 1272. Implementation. 

Sec. 1273. Transfer of resources. 

Sec. 1274. Effective date. 

Sec. 1275. Service allocation. 

Sec. 1276. Authorization of appropriations. 

Sec. 1277. Conforming amendments to the Federal Power Act. 
9

•HR 1640 IH 

Subtitle G—Market Transparency, Enforcement, and Consumer Protection 

Sec. 1281. Market transparency rules. 

Sec. 1282. Market manipulation. 

Sec. 1283. Enforcement. 

Sec. 1284. Refund effective date. 

Sec. 1285. Refund authority. 

Sec. 1286. Sanctity of contract. 

Sec. 1287. Consumer privacy and unfair trade practices. 

Subtitle H—Merger Reform 

Sec. 1291. Merger review reform and accountability. 

Sec. 1292. Electric utility mergers. 

Subtitle I—Definitions 

Sec. 1295. Definitions. 

Subtitle J—Technical and Conforming Amendments 

Sec. 1297. Conforming amendments. 

Subtitle K—Economic Dispatch 

Sec. 1298. Economic dispatch. 

TITLE XIV—MISCELLANEOUS 

Subtitle C—Other Provisions 

Sec. 1441. Continuation of transmission security order. 

Sec. 1442. Review of agency determinations. 

Sec. 1443. Attainment dates for downwind ozone nonattainment areas. 

Sec. 1444. Energy production incentives. 

Sec. 1446. Regulation of certain oil used in transformers. 

Sec. 1447. Risk assessments. 

Sec. 1448. Oxygen-fuel. 

Sec. 1449. Petrochemical and oil refinery facility health assessment. 

TITLE XV—ETHANOL AND MOTOR FUELS 

Subtitle A—General Provisions 

Sec. 1501. Renewable content of motor vehicle fuel. 

Sec. 1502. Fuels safe harbor. 

Sec. 1503. Findings and MTBE transition assistance. 

Sec. 1504. Use of MTBE. 

Sec. 1505. National Academy of Sciences review and presidential determination. 

Sec. 1506. Elimination of oxygen content requirement for reformulated gasoline. 

Sec. 1507. Analyses of motor vehicle fuel changes. 

Sec. 1508. Data collection. 

Sec. 1509. Reducing the proliferation of State fuel controls. 

Sec. 1510. Fuel system requirements harmonization study. 

Sec. 1511. Commercial byproducts from municipal solid waste and cellulosic 

biomass loan guarantee program. 

Sec. 1512. Cellulosic biomass and waste-derived ethanol conversion assistance. 
10

•HR 1640 IH 

Sec. 1513. Blending of compliant reformulated gasolines. 

Subtitle B—Underground Storage Tank Compliance 

Sec. 1521. Short title. 

Sec. 1522. Leaking underground storage tanks. 

Sec. 1523. Inspection of underground storage tanks. 

Sec. 1524. Operator training. 

Sec. 1525. Remediation from oxygenated fuel additives. 

Sec. 1526. Release prevention, compliance, and enforcement. 

Sec. 1527. Delivery prohibition. 

Sec. 1528. Federal facilities. 

Sec. 1529. Tanks on Tribal lands. 

Sec. 1530. Additional measures to protect groundwater. 

Sec. 1531. Authorization of appropriations. 

Sec. 1532. Conforming amendments. 

Sec. 1533. Technical amendments. 

Subtitle C—Boutique Fuels 

Sec. 1541. Reducing the proliferation of boutique fuels. 

TITLE XVI—STUDIES 

Sec. 1601. Study on inventory of petroleum and natural gas storage. 

Sec. 1605. Study of energy efficiency standards. 

Sec. 1606. Telecommuting study. 

Sec. 1607. LIHEAP report. 

Sec. 1608. Oil bypass filtration technology. 

Sec. 1609. Total integrated thermal systems. 

Sec. 1610. University collaboration. 

Sec. 1611. Reliability and consumer protection assessment. 

Sec. 1612. Report on energy integration with Latin America. 

Sec. 1613. Low-volume gas reservoir study.

1 TITLE I—ENERGY EFFICIENCY 

2 Subtitle A—Federal Programs 

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

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

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

7 is amended by adding at the end the following: 

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

9 CONGRESSIONAL BUILDINGS. 

10 ‘‘(a) IN GENERAL.—The Architect of the Capitol—
11

•HR 1640 IH 

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

2 cost-effective energy conservation and management 

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

4 facilities administered by Congress (referred to in 

5 this section as ‘congressional buildings’) to meet the 

6 energy performance requirements for Federal build7 ings established under section 543(a)(1); and 

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

9 later than 180 days after the date of enactment of 

10 this section. 

11 ‘‘(b) PLAN REQUIREMENTS.—The plan shall in12 clude—

13 ‘‘(1) a description of the life cycle cost analysis 

14 used to determine the cost-effectiveness of proposed 

15 energy efficiency projects; 

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

17 complete surveys of all congressional buildings every 

18 5 years to determine the cost and payback period of 

19 energy and water conservation measures; 

20 ‘‘(3) a strategy for installation of life cycle cost21 effective energy and water conservation measures; 

22 ‘‘(4) the results of a study of the costs and ben23 efits of installation of submetering in congressional 

24 buildings; and 
12

•HR 1640 IH 

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

2 for each Member and employing authority of Con3 gress that detail simple, cost-effective methods to 

4 save energy and taxpayer dollars in the workplace. 

5 ‘‘(c) ANNUAL REPORT.—The Architect of the Capitol 

6 shall submit to Congress annually a report on congres7 sional energy management and conservation programs re8 quired under this section that describes in detail—

9 ‘‘(1) energy expenditures and savings estimates 

10 for each facility; 

11 ‘‘(2) energy management and conservation 

12 projects; and 

13 ‘‘(3) future priorities to ensure compliance with 

14 this section.’’. 

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

16 of contents of the National Energy Conservation Policy 

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

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

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

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

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

21 (d) ENERGY INFRASTRUCTURE.—The Architect of 

22 the Capitol, building on the Master Plan Study completed 

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

24 energy infrastructure of the Capital Complex to determine 

25 how the infrastructure could be augmented to become 
13

•HR 1640 IH 

1 more energy efficient, using unconventional and renewable 

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

3 to have reliable utility service in the event of power fluc4 tuations, shortages, or outages. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Architect of the 

7 Capitol to carry out subsection (d), $2,000,000 for each 

8 of fiscal years 2006 through 2010. 

9 SEC. 102. ENERGY MANAGEMENT REQUIREMENTS. 

10 (a) ENERGY REDUCTION GOALS.—

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

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

13 8253(a)(1)) is amended by striking ‘‘its Federal 

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

15 end and inserting ‘‘the Federal buildings of the 

16 agency (including each industrial or laboratory facil17 ity) so that the energy consumption per gross square 

18 foot of the Federal buildings of the agency in fiscal 

19 years 2006 through 2015 is reduced, as compared 

20 with the energy consumption per gross square foot 

21 of the Federal buildings of the agency in fiscal year 

22 2003, by the percentage specified in the following 

23 table:

‘‘Fiscal Year Percentage reduction 

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

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

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

2009 ................................................................................................... 8
14

•HR 1640 IH 

‘‘Fiscal Year Percentage reduction 

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

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

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

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

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

2015 ................................................................................................... 20.’’.

1 (2) REPORTING BASELINE.—The energy reduc2 tion goals and baseline established in paragraph (1) 

3 of section 543(a) of the National Energy Conserva4 tion Policy Act (42 U.S.C. 8253(a)(1)), as amended 

5 by this subsection, supersede all previous goals and 

6 baselines under such paragraph, and related report7 ing requirements. 

8 (b) REVIEW AND REVISION OF ENERGY PERFORM9 ANCE REQUIREMENT.—Section 543(a) of the National 

10 Energy Conservation Policy Act (42 U.S.C. 8253(a)) is 

11 further amended by adding at the end the following: 

12 ‘‘(3) Not later than December 31, 2014, the Sec13 retary shall review the results of the implementation of 

14 the energy performance requirement established under 

15 paragraph (1) and submit to Congress recommendations 

16 concerning energy performance requirements for fiscal 

17 years 2016 through 2025.’’. 

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

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

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

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

22 may exclude, from the energy performance requirement 
15

•HR 1640 IH 

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

2 energy management requirement established under sub3 section (b), any Federal building or collection of Federal 

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

5 ‘‘(i) compliance with those requirements would 

6 be impracticable; 

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

8 all federally required energy management reports; 

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

10 the energy efficiency requirements of this Act, the 

11 Energy Policy Act of 1992, Executive orders, and 

12 other Federal law; and 

13 ‘‘(iv) the agency has implemented all prac14 ticable, life cycle cost-effective projects with respect 

15 to the Federal building or collection of Federal 

16 buildings to be excluded. 

17 ‘‘(B) A finding of impracticability under subpara18 graph (A)(i) shall be based on—

19 ‘‘(i) the energy intensiveness of activities car20 ried out in the Federal building or collection of Fed21 eral buildings; or 

22 ‘‘(ii) the fact that the Federal building or col23 lection of Federal buildings is used in the perform24 ance of a national security function.’’. 
16

•HR 1640 IH 

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

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

3 8253(c)(2)) is amended—

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

5 inserting ‘‘standards for exclusion’’; 

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

7 and inserting ‘‘the exclusion’’; and 

8 (3) by striking ‘‘energy consumption require9 ments’’ and inserting ‘‘requirements of subsections 

10 (a) and (b)(1)’’. 

11 (e) CRITERIA.—Section 543(c) of the National En12 ergy Conservation Policy Act (42 U.S.C. 8253(c)) is fur13 ther amended by adding at the end the following: 

14 ‘‘(3) Not later than 180 days after the date of enact15 ment of this paragraph, the Secretary shall issue guide16 lines that establish criteria for exclusions under paragraph 

17 (1).’’. 

18 (f) RETENTION OF ENERGY AND WATER SAVINGS.—

19 Section 546 of the National Energy Conservation Policy 

20 Act (42 U.S.C. 8256) is amended by adding at the end 

21 the following new subsection: 

22 ‘‘(e) RETENTION OF ENERGY AND WATER SAV23 INGS.—An agency may retain any funds appropriated to 

24 that agency for energy expenditures, water expenditures, 

25 or wastewater treatment expenditures, at buildings subject 
17

•HR 1640 IH 

1 to the requirements of section 543(a) and (b), that are 

2 not made because of energy savings or water savings. Ex3 cept as otherwise provided by law, such funds may be used 

4 only for energy efficiency, water conservation, or uncon5 ventional and renewable energy resources projects.’’. 

6 (g) REPORTS.—Section 548(b) of the National En7 ergy Conservation Policy Act (42 U.S.C. 8258(b)) is 

8 amended—

9 (1) in the subsection heading, by inserting 

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

11 (2) by inserting ‘‘President and’’ before ‘‘Con12 gress’’. 

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

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

15 8258b(d)) is amended in the second sentence by striking 

16 ‘‘the 20 percent reduction goal established under section 

17 543(a) of the National Energy Conservation Policy Act 

18 (42 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy 

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

20 SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNT21 ABILITY. 

22 Section 543 of the National Energy Conservation 

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

24 at the end the following: 

25 ‘‘(e) METERING OF ENERGY USE.—
18

•HR 1640 IH 

1 ‘‘(1) DEADLINE.—By October 1, 2012, in ac2 cordance with guidelines established by the Sec3 retary under paragraph (2), all Federal buildings 

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

5 reduction in the cost of electricity used in such 

6 buildings, be metered or submetered. Each agency 

7 shall use, to the maximum extent practicable, ad8 vanced meters or advanced metering devices that 

9 provide data at least daily and that measure at least 

10 hourly consumption of electricity in the Federal 

11 buildings of the agency. Such data shall be incor12 porated into existing Federal energy tracking sys13 tems and made available to Federal facility energy 

14 managers. 

15 ‘‘(2) GUIDELINES.—

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

17 days after the date of enactment of this sub18 section, the Secretary, in consultation with the 

19 Department of Defense, the General Services 

20 Administration, representatives from the meter21 ing industry, utility industry, energy services in22 dustry, energy efficiency industry, energy effi23 ciency advocacy organizations, national labora24 tories, universities, and Federal facility energy 
19

•HR 1640 IH 

1 managers, shall establish guidelines for agencies 

2 to carry out paragraph (1). 

3 ‘‘(B) REQUIREMENTS FOR GUIDELINES.—

4 The guidelines shall—

5 ‘‘(i) take into consideration—

6 ‘‘(I) the cost of metering and 

7 submetering and the reduced cost of 

8 operation and maintenance expected 

9 to result from metering and sub10 metering; 

11 ‘‘(II) the extent to which meter12 ing and submetering are expected to 

13 result in increased potential for en14 ergy management, increased potential 

15 for energy savings and energy effi16 ciency improvement, and cost and en17 ergy savings due to utility contract 

18 aggregation; and 

19 ‘‘(III) the measurement and 

20 verification protocols of the Depart21 ment of Energy; 

22 ‘‘(ii) include recommendations con23 cerning the amount of funds and the num24 ber of trained personnel necessary to gath-
20

•HR 1640 IH 

1 er and use the metering information to 

2 track and reduce energy use; 

3 ‘‘(iii) establish priorities for types and 

4 locations of buildings to be metered and 

5 submetered based on cost-effectiveness and 

6 a schedule of 1 or more dates, not later 

7 than 1 year after the date of issuance of 

8 the guidelines, on which the requirements 

9 specified in paragraph (1) shall take effect; 

10 and 

11 ‘‘(iv) establish exclusions from the re12 quirements specified in paragraph (1) 

13 based on the de minimis quantity of energy 

14 use of a Federal building, industrial proc15 ess, or structure. 

16 ‘‘(3) PLAN.—Not later than 6 months after the 

17 date guidelines are established under paragraph (2), 

18 in a report submitted by the agency under section 

19 548(a), each agency shall submit to the Secretary a 

20 plan describing how the agency will implement the 

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

22 the agency will designate personnel primarily respon23 sible for achieving the requirements and (B) dem24 onstration by the agency, complete with documenta25 tion, of any finding that advanced meters or ad-
21

•HR 1640 IH 

1 vanced metering devices, as defined in paragraph 

2 (1), are not practicable.’’. 

3 SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PROD4 UCTS. 

5 (a) REQUIREMENTS.—Part 3 of title V of the Na6 tional Energy Conservation Policy Act (42 U.S.C. 8251 

7 et seq.), as amended by section 101, is amended by adding 

8 at the end the following: 

9 ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFI10 CIENT PRODUCTS. 

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

12 ‘‘(1) AGENCY.—The term ‘agency’ has the 

13 meaning given that term in section 7902(a) of title 

14 5, United States Code. 

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

17 energy efficiency under an Energy Star program. 

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

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

22 ‘‘(4) FEMP DESIGNATED PRODUCT.—The term 

23 ‘FEMP designated product’ means a product that is 

24 designated under the Federal Energy Management 

25 Program of the Department of Energy as being 
22

•HR 1640 IH 

1 among the highest 25 percent of equivalent products 

2 for energy efficiency. 

3 ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD4 UCTS.—

5 ‘‘(1) REQUIREMENT.—To meet the require6 ments of an agency for an energy consuming prod7 uct, the head of the agency shall, except as provided 

8 in paragraph (2), procure—

9 ‘‘(A) an Energy Star product; or 

10 ‘‘(B) a FEMP designated product. 

11 ‘‘(2) EXCEPTIONS.—The head of an agency is 

12 not required to procure an Energy Star product or 

13 FEMP designated product under paragraph (1) if 

14 the head of the agency finds in writing that—

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

16 designated product is not cost-effective over the 

17 life of the product taking energy cost savings 

18 into account; or 

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

20 designated product is reasonably available that 

21 meets the functional requirements of the agen22 cy. 

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

24 an agency shall incorporate into the specifications 

25 for all procurements involving energy consuming 
23

•HR 1640 IH 

1 products and systems, including guide specifications, 

2 project specifications, and construction, renovation, 

3 and services contracts that include provision of en4 ergy consuming products and systems, and into the 

5 factors for the evaluation of offers received for the 

6 procurement, criteria for energy efficiency that are 

7 consistent with the criteria used for rating Energy 

8 Star products and for rating FEMP designated 

9 products. 

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

11 FEDERAL CATALOGS.—Energy Star products and FEMP 

12 designated products shall be clearly identified and promi13 nently displayed in any inventory or listing of products 

14 by the General Services Administration or the Defense Lo15 gistics Agency. The General Services Administration or 

16 the Defense Logistics Agency shall supply only Energy 

17 Star products or FEMP designated products for all prod18 uct categories covered by the Energy Star program or the 

19 Federal Energy Management Program, except in cases 

20 where the agency ordering a product specifies in writing 

21 that no Energy Star product or FEMP designated product 

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

23 or that no Energy Star product or FEMP designated 

24 product is cost-effective for the intended application over 
24

•HR 1640 IH 

1 the life of the product, taking energy cost savings into ac2 count. 

3 ‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of elec4 tric motors of 1 to 500 horsepower, agencies shall select 

5 only premium efficient motors that meet a standard des6 ignated by the Secretary. The Secretary shall designate 

7 such a standard not later than 120 days after the date 

8 of the enactment of this section, after considering the rec9 ommendations of associated electric motor manufacturers 

10 and energy efficiency groups. 

11 ‘‘(2) All Federal agencies are encouraged to take ac12 tions to maximize the efficiency of air conditioning and 

13 refrigeration equipment, including appropriate cleaning 

14 and maintenance, including the use of any system treat15 ment or additive that will reduce the electricity consumed 

16 by air conditioning and refrigeration equipment. Any such 

17 treatment or additive must be—

18 ‘‘(A) determined by the Secretary to be effective 

19 in increasing the efficiency of air conditioning and 

20 refrigeration equipment without having an adverse 

21 impact on air conditioning performance (including 

22 cooling capacity) or equipment useful life; 

23 ‘‘(B) determined by the Administrator of the 

24 Environmental Protection Agency to be environ25 mentally safe; and 
25

•HR 1640 IH 

1 ‘‘(C) shown to increase seasonal energy effi2 ciency ratio (SEER) or energy efficiency ratio 

3 (EER) when tested by the National Institute of 

4 Standards and Technology according to Department 

5 of Energy test procedures without causing any ad6 verse impact on the system, system components, the 

7 refrigerant or lubricant, or other materials in the 

8 system. 

9 Results of testing described in subparagraph (C) shall be 

10 published in the Federal Register for public review and 

11 comment. For purposes of this section, a hardware device 

12 or primary refrigerant shall not be considered an additive. 

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

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

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

16 (b) CONFORMING AMENDMENT.—The table of con17 tents of the National Energy Conservation Policy Act is 

18 further amended by inserting after the item relating to 

19 section 552 the following new item:

‘‘Sec. 553. Federal procurement of energy efficient products.’’.

20 SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

21 (a) LIMITATIONS.—

22 (1) IN GENERAL.—Section 801(a) of the Na23 tional Energy Conservation Policy Act (42 U.S.C. 

24 8287(a)) is amended by adding at the end the fol25 lowing subparagraph: 
26

•HR 1640 IH 

1 ‘‘(E) All Federal agencies combined may not, after 

2 the date of enactment of the Energy Policy Act of 2005, 

3 enter into more than a total of 100 contracts under this 

4 title. Payments made by the Federal Government under 

5 all contracts permitted by this subparagraph combined 

6 shall not exceed a total of $500,000,000. Each Federal 

7 agency shall appoint a coordinator for Energy Savings 

8 Performance Contracts with the responsibility to monitor 

9 the number of such contracts for that Federal agency and 

10 the investment value of each contract. The coordinators 

11 for each Federal agency shall meet monthly to ensure that 

12 the limits specified in this subparagraph on the number 

13 of contracts and the payments made for the contracts are 

14 not exceeded.’’. 

15 (2) DEFINITION.—Section 804(1) of the Na16 tional Energy Conservation Policy Act (42 U.S.C. 

17 8287c(1)) is amended to read as follows: 

18 ‘‘(1) The term ‘Federal agency’ means the De19 partment of Defense, the Department of Veterans 

20 Affairs, and the Department of Energy.’’. 

21 (3) VALIDITY OF CONTRACTS.—The amend22 ments made by this subsection shall not affect the 

23 validity of contracts entered into under title VIII of 

24 the National Energy Conservation Policy Act (42 

25 U.S.C. 8287 et seq.) before the date of enactment 
27

•HR 1640 IH 

1 of this Act, or of contracts described in subsection 

2 (h). 

3 (b) PERMANENT EXTENSION.—Effective October 1, 

4 2006, section 801(c) of the National Energy Conservation 

5 Policy Act (42 U.S.C. 8287(c)) is repealed. 

6 (c) PAYMENT OF COSTS.—Section 802 of the Na7 tional Energy Conservation Policy Act (42 U.S.C. 8287a) 

8 is amended by inserting ‘‘, water, or wastewater treat9 ment’’ after ‘‘payment of energy’’. 

10 (d) ENERGY SAVINGS.—Section 804(2) of the Na11 tional Energy Conservation Policy Act (42 U.S.C. 

12 8287c(2)) is amended to read as follows: 

13 ‘‘(2) The term ‘energy savings’ means a reduc14 tion in the cost of energy, water, or wastewater 

15 treatment, from a base cost established through a 

16 methodology set forth in the contract, used in an ex17 isting federally owned building or buildings or other 

18 federally owned facilities as a result of—

19 ‘‘(A) the lease or purchase of operating 

20 equipment, improvements, altered operation and 

21 maintenance, or technical services; 

22 ‘‘(B) the increased efficient use of existing 

23 energy sources by cogeneration or heat recov24 ery, excluding any cogeneration process for 
28

•HR 1640 IH 

1 other than a federally owned building or build2 ings or other federally owned facilities; or 

3 ‘‘(C) the increased efficient use of existing 

4 water sources in either interior or exterior ap5 plications.’’. 

6 (e) ENERGY SAVINGS CONTRACT.—Section 804(3) of 

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

8 8287c(3)) is amended to read as follows: 

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

10 ‘energy savings performance contract’ mean a con11 tract that provides for the performance of services 

12 for the design, acquisition, installation, testing, and, 

13 where appropriate, operation, maintenance, and re14 pair, of an identified energy or water conservation 

15 measure or series of measures at 1 or more loca16 tions. Such contracts shall, with respect to an agen17 cy facility that is a public building (as such term is 

18 defined in section 3301 of title 40, United States 

19 Code), be in compliance with the prospectus require20 ments and procedures of section 3307 of title 40, 

21 United States Code.’’. 

22 (f) ENERGY OR WATER CONSERVATION MEASURE.—

23 Section 804(4) of the National Energy Conservation Pol24 icy Act (42 U.S.C. 8287c(4)) is amended to read as fol25 lows: 
29

•HR 1640 IH 

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

2 measure’ means—

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

4 defined in section 551; or 

5 ‘‘(B) a water conservation measure that 

6 improves the efficiency of water use, is life-cycle 

7 cost-effective, and involves water conservation, 

8 water recycling or reuse, more efficient treat9 ment of wastewater or stormwater, improve10 ments in operation or maintenance efficiencies, 

11 retrofit activities, or other related activities, not 

12 at a Federal hydroelectric facility.’’. 

13 (g) REVIEW.—Not later than 180 days after the date 

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

15 complete a review of the Energy Savings Performance 

16 Contract program to identify statutory, regulatory, and 

17 administrative obstacles that prevent Federal agencies 

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

19 shall identify all areas for increasing program flexibility 

20 and effectiveness, including audit and measurement 

21 verification requirements, accounting for energy use in de22 termining savings, contracting requirements, including the 

23 identification of additional qualified contractors, and en24 ergy efficiency services covered. The Secretary shall report 

25 these findings to Congress and shall implement identified 
30

•HR 1640 IH 

1 administrative and regulatory changes to increase pro2 gram flexibility and effectiveness to the extent that such 

3 changes are consistent with statutory authority. 

4 (h) EXTENSION OF AUTHORITY.—Any energy sav5 ings performance contract entered into under section 801 

6 of the National Energy Conservation Policy Act (42 

7 U.S.C. 8287) after October 1, 2006, and before the date 

8 of enactment of this Act, shall be deemed to have been 

9 entered into pursuant to such section 801 as amended by 

10 subsection (a) of this section. 

11 SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUS12 TRIAL ENERGY INTENSITY. 

13 (a) VOLUNTARY AGREEMENTS.—The Secretary of 

14 Energy is authorized to enter into voluntary agreements 

15 with 1 or more persons in industrial sectors that consume 

16 significant amounts of primary energy per unit of physical 

17 output to reduce the energy intensity of their production 

18 activities by a significant amount relative to improvements 

19 in each sector in recent years. 

20 (b) RECOGNITION.—The Secretary of Energy, in co21 operation with the Administrator of the Environmental 

22 Protection Agency and other appropriate Federal agen23 cies, shall recognize and publicize the achievements of par24 ticipants in voluntary agreements under this section. 
31

•HR 1640 IH 

1 (c) DEFINITION.—In this section, the term ‘‘energy 

2 intensity’’ means the primary energy consumed per unit 

3 of physical output in an industrial process. 

4 SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED. 

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

6 consultation with the Administrator of General Services, 

7 shall establish an Advanced Building Efficiency Testbed 

8 program for the development, testing, and demonstration 

9 of advanced engineering systems, components, and mate10 rials to enable innovations in building technologies. The 

11 program shall evaluate efficiency concepts for government 

12 and industry buildings, and demonstrate the ability of 

13 next generation buildings to support individual and orga14 nizational productivity and health (including by improving 

15 indoor air quality) as well as flexibility and technological 

16 change to improve environmental sustainability. Such pro17 gram shall complement and not duplicate existing national 

18 programs. 

19 (b) PARTICIPANTS.—The program established under 

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

21 to combine the expertise from numerous academic fields 

22 including, at a minimum, intelligent workplaces and ad23 vanced building systems and engineering, electrical and 

24 computer engineering, computer science, architecture, 

25 urban design, and environmental and mechanical engi-
32

•HR 1640 IH 

1 neering. Such university shall partner with other univer2 sities and entities who have established programs and the 

3 capability of advancing innovative building efficiency tech4 nologies. 

5 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Secretary of En7 ergy to carry out this section $6,000,000 for each of the 

8 fiscal years 2006 through 2008, to remain available until 

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

under this section, the Secretary shall provide 1 10 ⁄3 of the 

11 total amount to the lead university described in subsection 

(b), and provide the remaining 2 12 ⁄3 to the other participants 

13 referred to in subsection (b) on an equal basis. 

14 SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS. 

15 Section 305(a) of the Energy Conservation and Pro16 duction Act (42 U.S.C. 6834(a)) is amended—

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

18 Model Energy Code, 1992’’ and inserting ‘‘the 2003 

19 International Energy Conservation Code’’; and 

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

21 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI22 CIENCY PERFORMANCE STANDARDS.—

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

24 the date of enactment of this paragraph, the Sec25 retary of Energy shall establish, by rule, revised 
33

•HR 1640 IH 

1 Federal building energy efficiency performance 

2 standards that require that—

3 ‘‘(i) if life-cycle cost-effective, for new Fed4 eral buildings—

5 ‘‘(I) such buildings be designed so as 

6 to achieve energy consumption levels at 

7 least 30 percent below those of the version 

8 current as of the date of enactment of this 

9 paragraph of the ASHRAE Standard or 

10 the International Energy Conservation 

11 Code, as appropriate; and 

12 ‘‘(II) sustainable design principles are 

13 applied to the siting, design, and construc14 tion of all new and replacement buildings; 

15 and 

16 ‘‘(ii) where water is used to achieve energy 

17 efficiency, water conservation technologies shall 

18 be applied to the extent they are life-cycle cost 

19 effective. 

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

21 1 year after the date of approval of each subsequent 

22 revision of the ASHRAE Standard or the Inter23 national Energy Conservation Code, as appropriate, 

24 the Secretary of Energy shall determine, based on 

25 the cost-effectiveness of the requirements under the 
34

•HR 1640 IH 

1 amendments, whether the revised standards estab2 lished under this paragraph should be updated to re3 flect the amendments. 

4 ‘‘(C) STATEMENT ON COMPLIANCE OF NEW

5 BUILDINGS.—In the budget request of the Federal 

6 agency for each fiscal year and each report sub7 mitted by the Federal agency under section 548(a) 

8 of the National Energy Conservation Policy Act (42 

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

10 shall include—

11 ‘‘(i) a list of all new Federal buildings 

12 owned, operated, or controlled by the Federal 

13 agency; and 

14 ‘‘(ii) a statement concerning whether the 

15 Federal buildings meet or exceed the revised 

16 standards established under this paragraph.’’. 

17 SEC. 110. DAYLIGHT SAVINGS. 

18 (a) REPEAL.—Section 3(a) of the Uniform Time Act 

19 of 1966 (15 U.S.C. 260a(a)) is amended—

20 (1) by striking ‘‘April’’ and inserting ‘‘March’’; 

21 and 

22 (2) by striking ‘‘October’’ and inserting ‘‘No23 vember’’. 

24 (b) REPORT TO CONGRESS.—Not later than 9 

25 months after the date of enactment of this Act, the Sec-
35

•HR 1640 IH 

1 retary of Energy shall report to Congress on the impact 

2 this section on energy consumption in the United States. 

3 Subtitle B—Energy Assistance and 

4 State Programs 

5 SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PRO6 GRAM. 

7 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

8 2602(b) of the Low-Income Home Energy Assistance Act 

9 of 1981 (42 U.S.C. 8621(b)) is amended by striking ‘‘and 

10 $2,000,000,000 for each of fiscal years 2002 through 

11 2004’’ and inserting ‘‘and $5,100,000,000 for each of fis12 cal years 2005 through 2007’’. 

13 (b) RENEWABLE FUELS.—The Low-Income Home 

14 Energy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) 

15 is amended by adding at the end the following new section: 

16 ‘‘RENEWABLE FUELS

17 ‘‘SEC. 2612. In providing assistance pursuant to this 

18 title, a State, or any other person with which the State 

19 makes arrangements to carry out the purposes of this title, 

20 may purchase renewable fuels, including biomass.’’. 

21 (c) REPORT TO CONGRESS.—The Secretary of En22 ergy shall report to Congress on the use of renewable fuels 

23 in providing assistance under the Low-Income Home En24 ergy Assistance Act of 1981 (42 U.S.C. 8621 et seq.). 
36

•HR 1640 IH 

1 SEC. 122. WEATHERIZATION ASSISTANCE. 

2 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

3 422 of the Energy Conservation and Production Act (42 

4 U.S.C. 6872) is amended by striking ‘‘for fiscal years 

5 1999 through 2003 such sums as may be necessary’’ and 

6 inserting ‘‘$500,000,000 for fiscal year 2006, 

7 $600,000,000 for fiscal year 2007, and $700,000,000 for 

8 fiscal year 2008’’. 

9 (b) ELIGIBILITY.—Section 412(7) of the Energy 

10 Conservation and Production Act (42 U.S.C. 6862(7)) is 

11 amended by striking ‘‘125 percent’’ both places it appears 

12 and inserting ‘‘150 percent’’. 

13 SEC. 123. STATE ENERGY PROGRAMS. 

14 (a) STATE ENERGY CONSERVATION PLANS.—Section 

15 362 of the Energy Policy and Conservation Act (42 U.S.C. 

16 6322) is amended by inserting at the end the following 

17 new subsection: 

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

19 invite the Governor of each State to review and, if nec20 essary, revise the energy conservation plan of such State 

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

22 consider the energy conservation plans of other States 

23 within the region, and identify opportunities and actions 

24 carried out in pursuit of common energy conservation 

25 goals.’’. 
37

•HR 1640 IH 

1 (b) STATE ENERGY EFFICIENCY GOALS.—Section 

2 364 of the Energy Policy and Conservation Act (42 U.S.C. 

3 6324) is amended to read as follows: 

4 ‘‘STATE ENERGY EFFICIENCY GOALS

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

6 respect to which assistance is made available under this 

7 part on or after the date of enactment of the Energy Pol8 icy Act of 2005 shall contain a goal, consisting of an im9 provement of 25 percent or more in the efficiency of use 

10 of energy in the State concerned in calendar year 2012 

11 as compared to calendar year 1990, and may contain in12 terim goals.’’. 

13 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

14 365(f) of the Energy Policy and Conservation Act (42 

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

16 1999 through 2003 such sums as may be necessary’’ and 

17 inserting ‘‘$100,000,000 for each of the fiscal years 2006 

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

19 SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PRO20 GRAMS. 

21 (a) DEFINITIONS.—In this section: 

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

23 State’’ means a State that meets the requirements 

24 of subsection (b). 

25 (2) ENERGY STAR PROGRAM.—The term ‘‘En26 ergy Star program’’ means the program established 
38

•HR 1640 IH 

1 by section 324A of the Energy Policy and Conserva2 tion Act. 

3 (3) RESIDENTIAL ENERGY STAR PRODUCT.—

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

5 a product for a residence that is rated for energy ef6 ficiency under the Energy Star program. 

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

8 the Secretary of Energy. 

9 (5) STATE ENERGY OFFICE.—The term ‘‘State 

10 energy office’’ means the State agency responsible 

11 for developing State energy conservation plans under 

12 section 362 of the Energy Policy and Conservation 

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

14 (6) STATE PROGRAM.—The term ‘‘State pro15 gram’’ means a State energy efficient appliance re16 bate program described in subsection (b)(1). 

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

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

19 (1) establishes (or has established) a State en20 ergy efficient appliance rebate program to provide 

21 rebates to residential consumers for the purchase of 

22 residential Energy Star products to replace used ap23 pliances of the same type; 
39

•HR 1640 IH 

1 (2) submits an application for the allocation at 

2 such time, in such form, and containing such infor3 mation as the Secretary may require; and 

4 (3) provides assurances satisfactory to the Sec5 retary that the State will use the allocation to sup6 plement, but not supplant, funds made available to 

7 carry out the State program. 

8 (c) AMOUNT OF ALLOCATIONS.—

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

10 for each fiscal year, the Secretary shall allocate to 

11 the State energy office of each eligible State to carry 

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

13 obtained by multiplying the amount made available 

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

15 that the population of the State in the most recent 

16 calendar year for which data are available bears to 

17 the total population of all eligible States in that cal18 endar year. 

19 (2) MINIMUM ALLOCATIONS.—For each fiscal 

20 year, the amounts allocated under this subsection 

21 shall be adjusted proportionately so that no eligible 

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

23 determined by the Secretary. 

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

25 a State energy office under subsection (c) may be used 
40

•HR 1640 IH 

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

2 carrying out a State program. 

3 (e) ISSUANCE OF REBATES.—Rebates may be pro4 vided to residential consumers that meet the requirements 

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

6 determined by the State energy office, taking into consid7 eration—

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

9 energy office under subsection (c); 

10 (2) the amount of any Federal or State tax in11 centive available for the purchase of the residential 

12 Energy Star product; and 

13 (3) the difference between the cost of the resi14 dential Energy Star product and the cost of an ap15 pliance that is not a residential Energy Star prod16 uct, but is of the same type as, and is the nearest 

17 capacity, performance, and other relevant character18 istics (as determined by the State energy office) to, 

19 the residential Energy Star product. 

20 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Secretary to carry 

22 out this section $50,000,000 for each of the fiscal years 

23 2006 through 2010. 
41

•HR 1640 IH 

1 SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS. 

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

3 grants to the State agency responsible for developing State 

4 energy conservation plans under section 362 of the Energy 

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

6 such agency exists, a State agency designated by the Gov7 ernor of the State, to assist units of local government in 

8 the State in improving the energy efficiency of public 

9 buildings and facilities—

10 (1) through construction of new energy efficient 

11 public buildings that use at least 30 percent less en12 ergy than a comparable public building constructed 

13 in compliance with standards prescribed in the most 

14 recent version of the International Energy Conserva15 tion Code, or a similar State code intended to 

16 achieve substantially equivalent efficiency levels; or 

17 (2) through renovation of existing public build18 ings to achieve reductions in energy use of at least 

19 30 percent as compared to the baseline energy use 

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

21 year, weather-normalized average for calculating 

22 such baseline. 

23 (b) ADMINISTRATION.—State energy offices receiving 

24 grants under this section shall—

25 (1) maintain such records and evidence of com26 pliance as the Secretary may require; and 
42

•HR 1640 IH 

1 (2) develop and distribute information and ma2 terials and conduct programs to provide technical 

3 services and assistance to encourage planning, fi4 nancing, and design of energy efficient public build5 ings by units of local government. 

6 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

7 purposes of this section, there are authorized to be appro8 priated to the Secretary of Energy $30,000,000 for each 

9 of fiscal years 2006 through 2010. Not more than 10 per10 cent of appropriated funds shall be used for administra11 tion. 

12 SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY 

13 PILOT PROGRAM. 

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

15 to make grants to units of local government, private, non16 profit community development organizations, and Indian 

17 tribe economic development entities to improve energy effi18 ciency; identify and develop alternative, renewable, and 

19 distributed energy supplies; and increase energy conserva20 tion in low income rural and urban communities. 

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

22 grants on a competitive basis for—

23 (1) investments that develop alternative, renew24 able, and distributed energy supplies; 
43

•HR 1640 IH 

1 (2) energy efficiency projects and energy con2 servation programs; 

3 (3) studies and other activities that improve en4 ergy efficiency in low income rural and urban com5 munities; 

6 (4) planning and development assistance for in7 creasing the energy efficiency of buildings and facili8 ties; and 

9 (5) technical and financial assistance to local 

10 government and private entities on developing new 

11 renewable and distributed sources of power or com12 bined heat and power generation. 

13 (c) DEFINITION.—For purposes of this section, the 

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

15 or other organized group or community, including any 

16 Alaskan Native village or regional or village corporation 

17 as defined in or established pursuant to the Alaska Native 

18 Claims Settlement Act (43 U.S.C. 1601 et seq.), that is 

19 recognized as eligible for the special programs and services 

20 provided by the United States to Indians because of their 

21 status as Indians. 

22 (d) AUTHORIZATION OF APPROPRIATIONS.—For the 

23 purposes of this section there are authorized to be appro24 priated to the Secretary of Energy $20,000,000 for each 

25 of fiscal years 2006 through 2008. 
44

•HR 1640 IH 

1 Subtitle C—Energy Efficient 

2 Products 

3 SEC. 131. ENERGY STAR PROGRAM. 

4 (a) AMENDMENT.—The Energy Policy and Conserva5 tion Act (42 U.S.C. 6201 et seq.) is amended by inserting 

6 the following after section 324: 

7 ‘‘SEC. 324A. ENERGY STAR PROGRAM. 

8 ‘‘There is established at the Department of Energy 

9 and the Environmental Protection Agency a voluntary 

10 program to identify and promote energy-efficient products 

11 and buildings in order to reduce energy consumption, im12 prove energy security, and reduce pollution through vol13 untary labeling of or other forms of communication about 

14 products and buildings that meet the highest energy effi15 ciency standards. Responsibilities under the program shall 

16 be divided between the Department of Energy and the En17 vironmental Protection Agency consistent with the terms 

18 of agreements between the 2 agencies. The Administrator 

19 and the Secretary shall—

20 ‘‘(1) promote Energy Star compliant tech21 nologies as the preferred technologies in the market22 place for achieving energy efficiency and to reduce 

23 pollution; 
45

•HR 1640 IH 

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

2 Energy Star label, including special outreach to 

3 small businesses; 

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

5 label; 

6 ‘‘(4) solicit comments from interested parties 

7 prior to establishing or revising an Energy Star 

8 product category, specification, or criterion (or effec9 tive dates for any of the foregoing); 

10 ‘‘(5) upon adoption of a new or revised product 

11 category, specification, or criterion, provide reason12 able notice to interested parties of any changes (in13 cluding effective dates) in product categories, speci14 fications, or criteria along with an explanation of 

15 such changes and, where appropriate, responses to 

16 comments submitted by interested parties; and 

17 ‘‘(6) provide appropriate lead time (which shall 

18 be 9 months, unless the Agency or Department de19 termines otherwise) prior to the effective date for a 

20 new or a significant revision to a product category, 

21 specification, or criterion, taking into account the 

22 timing requirements of the manufacturing, product 

23 marketing, and distribution process for the specific 

24 product addressed.’’. 
46

•HR 1640 IH 

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

2 of contents of the Energy Policy and Conservation Act is 

3 amended by inserting after the item relating to section 

4 324 the following new item:

‘‘Sec. 324A. Energy Star program.’’.

5 SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION 

6 PROGRAM. 

7 Section 337 of the Energy Policy and Conservation 

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

9 the following: 

10 ‘‘(c) HVAC MAINTENANCE.—For the purpose of en11 suring that installed air conditioning and heating systems 

12 operate at their maximum rated efficiency levels, the Sec13 retary shall, not later than 180 days after the date of en14 actment of this subsection, carry out a program to educate 

15 homeowners and small business owners concerning the en16 ergy savings resulting from properly conducted mainte17 nance of air conditioning, heating, and ventilating sys18 tems. The Secretary shall carry out the program in a cost19 shared manner in cooperation with the Administrator of 

20 the Environmental Protection Agency and such other enti21 ties as the Secretary considers appropriate, including in22 dustry trade associations, industry members, and energy 

23 efficiency organizations. 

24 ‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST25 ANCE.—The Administrator of the Small Business Admin-
47

•HR 1640 IH 

1 istration, in consultation with the Secretary of Energy and 

2 the Administrator of the Environmental Protection Agen3 cy, shall develop and coordinate a Government-wide pro4 gram, building on the existing Energy Star for Small 

5 Business Program, to assist small businesses to become 

6 more energy efficient, understand the cost savings obtain7 able through efficiencies, and identify financing options 

8 for energy efficiency upgrades. The Secretary and the Ad9 ministrator of the Small Business Administration shall 

10 make the program information available directly to small 

11 businesses and through other Federal agencies, including 

12 the Federal Emergency Management Program and the 

13 Department of Agriculture.’’. 

14 SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDI15 TIONAL PRODUCTS. 

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

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

18 (1) in paragraph (30)(S), by striking the period 

19 and adding at the end the following: ‘‘but does not 

20 include any lamp specifically designed to be used for 

21 special purpose applications and that is unlikely to 

22 be used in general purpose applications such as 

23 those described in subparagraph (D), and also does 

24 not include any lamp not described in subparagraph 

25 (D) that is excluded by the Secretary, by rule, be-
48

•HR 1640 IH 

1 cause the lamp is designed for special applications 

2 and is unlikely to be used in general purpose appli3 cations.’’; and 

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

5 ‘‘(32) The term ‘battery charger’ means a de6 vice that charges batteries for consumer products 

7 and includes battery chargers embedded in other 

8 consumer products. 

9 ‘‘(33) The term ‘commercial refrigerators, 

10 freezers, and refrigerator-freezers’ means refrig11 erators, freezers, or refrigerator-freezers that—

12 ‘‘(A) are not consumer products regulated 

13 under this Act; and 

14 ‘‘(B) incorporate most components involved 

15 in the vapor-compression cycle and the refrig16 erated compartment in a single package. 

17 ‘‘(34) The term ‘external power supply’ means 

18 an external power supply circuit that is used to con19 vert household electric current into either DC cur20 rent or lower-voltage AC current to operate a con21 sumer product. 

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

23 sign that—

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

25 place to identify an exit; and 
49

•HR 1640 IH 

1 ‘‘(B) consists of an electrically powered in2 tegral light source that illuminates the legend 

3 ‘EXIT’ and any directional indicators and pro4 vides contrast between the legend, any direc5 tional indicators, and the background. 

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

7 (B), the term ‘distribution transformer’ means a 

8 transformer that—

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

10 or less; 

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

12 less; and 

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

14 of 60 Hertz. 

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

16 not include—

17 ‘‘(i) transformers with multiple voltage 

18 taps, with the highest voltage tap equaling at 

19 least 20 percent more than the lowest voltage 

20 tap; 

21 ‘‘(ii) transformers, such as those commonly 

22 known as drive transformers, rectifier trans23 formers, auto-transformers, Uninterruptible 

24 Power System transformers, impedance trans25 formers, regulating transformers, sealed and 
50

•HR 1640 IH 

1 nonventilating transformers, machine tool 

2 transformers, welding transformers, grounding 

3 transformers, or testing transformers, that are 

4 designed to be used in a special purpose appli5 cation and are unlikely to be used in general 

6 purpose applications; or 

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

8 (ii) that is excluded by the Secretary by rule be9 cause—

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

11 special application; 

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

13 used in general purpose applications; and 

14 ‘‘(III) the application of standards to 

15 the transformer would not result in signifi16 cant energy savings. 

17 ‘‘(37) The term ‘low-voltage dry-type distribu18 tion transformer’ means a distribution transformer 

19 that—

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

21 less; 

22 ‘‘(B) is air-cooled; and 

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

24 ‘‘(38) The term ‘standby mode’ means the low25 est power consumption mode that—
51

•HR 1640 IH 

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

2 by the user; and 

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

4 when an appliance is connected to the main 

5 electricity supply and used in accordance with 

6 the manufacturer’s instructions, 

7 as defined on an individual product basis by the Sec8 retary. 

9 ‘‘(39) The term ‘torchiere’ means a portable 

10 electric lamp with a reflector bowl that directs light 

11 upward so as to give indirect illumination. 

12 ‘‘(40) The term ‘traffic signal module’ means a 

13 standard 8-inch (200mm) or 12-inch (300mm) traf14 fic signal indication, consisting of a light source, a 

15 lens, and all other parts necessary for operation, 

16 that communicates movement messages to drivers 

17 through red, amber, and green colors. 

18 ‘‘(41) The term ‘transformer’ means a device 

19 consisting of 2 or more coils of insulated wire that 

20 transfers alternating current by electromagnetic in21 duction from 1 coil to another to change the original 

22 voltage or current value. 

23 ‘‘(42) The term ‘unit heater’ means a self-con24 tained fan-type heater designed to be installed with-
52

•HR 1640 IH 

1 in the heated space, except that such term does not 

2 include a warm air furnace. 

3 ‘‘(43) The term ‘ceiling fan’ means a non-port4 able device that is suspended from a ceiling for cir5 culating air via the rotation of fan blades. 

6 ‘‘(44) The term ‘ceiling fan light kit’ means 

7 equipment designed to provide light from a ceiling 

8 fan which can be—

9 ‘‘(A) integral, such that the equipment is 

10 attached to the ceiling fan prior to the time of 

11 retail sale; or 

12 ‘‘(B) attachable, such that at the time of 

13 retail sale the equipment is not physically at14 tached to the ceiling fan, but may be included 

15 inside the ceiling fan package at the time of 

16 sale or sold separately for subsequent attach17 ment to the fan.’’. 

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

19 Policy and Conservation Act (42 U.S.C. 6293) is amend20 ed—

21 (1) in subsection (b), by adding at the end the 

22 following: 

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

24 be based on the test method used under Version 2.0 of 
53

•HR 1640 IH 

1 the Energy Star program of the Environmental Protection 

2 Agency for illuminated exit signs. 

3 ‘‘(10) Test procedures for distribution transformers 

4 and low voltage dry-type distribution transformers shall 

5 be based on the ‘Standard Test Method for Measuring the 

6 Energy Consumption of Distribution Transformers’ pre7 scribed by the National Electrical Manufacturers Associa8 tion (NEMA TP 2–1998). The Secretary may review and 

9 revise this test procedure. For purposes of section 346(a), 

10 this test procedure shall be deemed to be testing require11 ments prescribed by the Secretary under section 346(a)(1) 

12 for distribution transformers for which the Secretary 

13 makes a determination that energy conservation standards 

14 would be technologically feasible and economically justi15 fied, and would result in significant energy savings. 

16 ‘‘(11) Test procedures for traffic signal modules shall 

17 be based on the test method used under the Energy Star 

18 program of the Environmental Protection Agency for traf19 fic signal modules, as in effect on the date of enactment 

20 of this paragraph. 

21 ‘‘(12) Test procedures for medium base compact fluo22 rescent lamps shall be based on the test methods used 

23 under the August 9, 2001, version of the Energy Star pro24 gram of the Environmental Protection Agency and De25 partment of Energy for compact fluorescent lamps. Cov-
54

•HR 1640 IH 

1 ered products shall meet all test requirements for regu2 lated parameters in section 325(bb). However, covered 

3 products may be marketed prior to completion of lamp life 

4 and lumen maintenance at 40 percent of rated life testing 

5 provided manufacturers document engineering predictions 

6 and analysis that support expected attainment of lumen 

7 maintenance at 40 percent rated life and lamp life time. 

8 ‘‘(13) The Secretary shall, not later than 18 months 

9 after the date of enactment of this paragraph, prescribe 

10 testing requirements for ceiling fans and ceiling fan light 

11 kits.’’; and 

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

13 ‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL

14 PRODUCTS.—The Secretary shall, not later than 24 

15 months after the date of enactment of this subsection, pre16 scribe testing requirements for suspended ceiling fans, re17 frigerated bottled or canned beverage vending machines, 

18 and commercial refrigerators, freezers, and refrigerator19 freezers. Such testing requirements shall be based on ex20 isting test procedures used in industry to the extent prac21 tical and reasonable. In the case of suspended ceiling fans, 

22 such test procedures shall include efficiency at both max23 imum output and at an output no more than 50 percent 

24 of the maximum output.’’. 
55

•HR 1640 IH 

1 (c) NEW STANDARDS.—Section 325 of the Energy 

2 Policy and Conservation Act (42 U.S.C. 6295) is amended 

3 by adding at the end the following: 

4 ‘‘(u) BATTERY CHARGER AND EXTERNAL POWER

5 SUPPLY ELECTRIC ENERGY CONSUMPTION.—

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

7 shall, within 18 months after the date of enactment 

8 of this subsection, prescribe by notice and comment, 

9 definitions and test procedures for the power use of 

10 battery chargers and external power supplies. In es11 tablishing these test procedures, the Secretary shall 

12 consider, among other factors, existing definitions 

13 and test procedures used for measuring energy con14 sumption in standby mode and other modes and as15 sess the current and projected future market for 

16 battery chargers and external power supplies. This 

17 assessment shall include estimates of the significance 

18 of potential energy savings from technical improve19 ments to these products and suggested product 

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

21 period, the Secretary shall hold a scoping workshop 

22 to discuss and receive comments on plans for devel23 oping energy conservation standards for energy use 

24 for these products. 
56

•HR 1640 IH 

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

2 the date of enactment of this subsection, issue a 

3 final rule that determines whether energy conserva4 tion standards shall be issued for battery chargers 

5 and external power supplies or classes thereof. For 

6 each product class, any such standards shall be set 

7 at the lowest level of energy use that—

8 ‘‘(i) meets the criteria and procedures of 

9 subsections (o), (p), (q), (r), (s), and (t); and 

10 ‘‘(ii) will result in significant overall an11 nual energy savings, considering both standby 

12 mode and other operating modes. 

13 ‘‘(2) REVIEW OF STANDBY ENERGY USE IN

14 COVERED PRODUCTS.—In determining pursuant to 

15 section 323 whether test procedures and energy con16 servation standards pursuant to this section should 

17 be revised, the Secretary shall consider, for covered 

18 products that are major sources of standby mode en19 ergy consumption, whether to incorporate standby 

20 mode into such test procedures and energy conserva21 tion standards, taking into account, among other 

22 relevant factors, standby mode power consumption 

23 compared to overall product energy consumption. 

24 ‘‘(3) RULEMAKING.—The Secretary shall not 

25 propose a standard under this section unless the 
57

•HR 1640 IH 

1 Secretary has issued applicable test procedures for 

2 each product pursuant to section 323. 

3 ‘‘(4) EFFECTIVE DATE.—Any standard issued 

4 under this subsection shall be applicable to products 

5 manufactured or imported 3 years after the date of 

6 issuance. 

7 ‘‘(5) VOLUNTARY PROGRAMS.—The Secretary 

8 and the Administrator shall collaborate and develop 

9 programs, including programs pursuant to section 

10 324A (relating to Energy Star Programs) and other 

11 voluntary industry agreements or codes of conduct, 

12 that are designed to reduce standby mode energy 

13 use. 

14 ‘‘(v) SUSPENDED CEILING FANS, VENDING MA15 CHINES, AND COMMERCIAL REFRIGERATORS, FREEZERS, 

16 AND REFRIGERATOR-FREEZERS.—The Secretary shall not 

17 later than 36 months after the date on which testing re18 quirements are prescribed by the Secretary pursuant to 

19 section 323(f), prescribe, by rule, energy conservation 

20 standards for suspended ceiling fans, refrigerated bottled 

21 or canned beverage vending machines, and commercial re22 frigerators, freezers, and refrigerator-freezers. In estab23 lishing standards under this subsection, the Secretary 

24 shall use the criteria and procedures contained in sub25 sections (o) and (p). Any standard prescribed under this 
58

•HR 1640 IH 

1 subsection shall apply to products manufactured 3 years 

2 after the date of publication of a final rule establishing 

3 such standard. 

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

5 signs manufactured on or after January 1, 2006, shall 

6 meet the Version 2.0 Energy Star Program performance 

7 requirements for illuminated exit signs prescribed by the 

8 Environmental Protection Agency. 

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

10 after January 1, 2006—

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

12 power; and 

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

14 lamps that total more than 190 watts. 

15 ‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION

16 TRANSFORMERS.—The efficiency of low voltage dry-type 

17 distribution transformers manufactured on or after Janu18 ary 1, 2006, shall be the Class I Efficiency Levels for dis19 tribution transformers specified in Table 4–2 of the ‘Guide 

20 for Determining Energy Efficiency for Distribution Trans21 formers’ published by the National Electrical Manufactur22 ers Association (NEMA TP–1–2002). 

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

24 modules manufactured on or after January 1, 2006, shall 

25 meet the performance requirements used under the En-
59

•HR 1640 IH 

1 ergy Star program of the Environmental Protection Agen2 cy for traffic signals, as in effect on the date of enactment 

3 of this subsection, and shall be installed with compatible, 

4 electrically connected signal control interface devices and 

5 conflict monitoring systems. 

6 ‘‘(aa) UNIT HEATERS.—Unit heaters manufactured 

7 on or after the date that is 3 years after the date of enact8 ment of this subsection shall be equipped with an intermit9 tent ignition device and shall have either power venting 

10 or an automatic flue damper. 

11 ‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT

12 LAMPS.—Bare lamp and covered lamp (no reflector) me13 dium base compact fluorescent lamps manufactured on or 

14 after January 1, 2006, shall meet the following require15 ments prescribed by the August 9, 2001, version of the 

16 Energy Star Program Requirements for Compact Fluores17 cent Lamps, Energy Star Eligibility Criteria, Energy-Effi18 ciency Specification issued by the Environmental Protec19 tion Agency and Department of Energy: minimum initial 

20 efficacy; lumen maintenance at 1000 hours; lumen mainte21 nance at 40 percent of rated life; rapid cycle stress test; 

22 and lamp life. The Secretary may, by rule, establish re23 quirements for color quality (CRI); power factor; oper24 ating frequency; and maximum allowable start time based 

25 on the requirements prescribed by the August 9, 2001, 
60

•HR 1640 IH 

1 version of the Energy Star Program Requirements for 

2 Compact Fluorescent Lamps. The Secretary may, by rule, 

3 revise these requirements or establish other requirements 

4 considering energy savings, cost effectiveness, and con5 sumer satisfaction. 

6 ‘‘(cc) EFFECTIVE DATE.—Section 327 shall apply—

7 ‘‘(1) to products for which standards are to be 

8 established under subsections (u) and (v) on the 

9 date on which a final rule is issued by the Depart10 ment of Energy, except that any State or local 

11 standards prescribed or enacted for any such prod12 uct prior to the date on which such final rule is 

13 issued shall not be preempted until the standard es14 tablished under subsection (u) or (v) for that prod15 uct takes effect; and 

16 ‘‘(2) to products for which standards are estab17 lished under subsections (w) through (bb) on the 

18 date of enactment of those subsections, except that 

19 any State or local standards prescribed or enacted 

20 prior to the date of enactment of those subsections 

21 shall not be preempted until the standards estab22 lished under subsections (w) through (bb) take ef23 fect. 

24 ‘‘(dd) CEILING FANS.—
61

•HR 1640 IH 

1 ‘‘(1) FEATURES.—All ceiling fans manufactured 

2 on or after January 1, 2006, shall have the following 

3 features: 

4 ‘‘(A) Lighting controls operate independ5 ently from fan speed controls. 

6 ‘‘(B) Adjustable speed controls (either 

7 more than 1 speed or variable speed). 

8 ‘‘(C) The capability of reversible fan ac9 tion, except for fans sold for industrial applica10 tions, outdoor applications, and where safety 

11 standards would be violated by the use of the 

12 reversible mode. The Secretary may promulgate 

13 regulations to define in greater detail the excep14 tions provided under this subparagraph but 

15 may not substantively expand the exceptions. 

16 ‘‘(2) REVISED STANDARDS.—

17 ‘‘(A) IN GENERAL.—Notwithstanding any 

18 provision of this Act, if the requirements of 

19 subsections (o) and (p) are met, the Secretary 

20 may consider and prescribe energy efficiency or 

21 energy use standards for electricity used by ceil22 ing fans to circulate air in a room. 

23 ‘‘(B) SPECIAL CONSIDERATION.—If the 

24 Secretary sets such standards, the Secretary 

25 shall consider—
62

•HR 1640 IH 

1 ‘‘(i) exempting or setting different 

2 standards for certain product classes for 

3 which the primary standards are not tech4 nically feasible or economically justified; 

5 and 

6 ‘‘(ii) establishing separate exempted 

7 product classes for highly decorative fans 

8 for which air movement performance is a 

9 secondary design feature. 

10 ‘‘(C) APPLICATION.—Any air movement 

11 standard prescribed under this subsection shall 

12 apply to products manufactured on or after the 

13 date that is 3 years after the date of publica14 tion of a final rule establishing the standard.’’. 

15 (d) RESIDENTIAL FURNACE FANS.—Section 

16 325(f)(3) of the Energy Policy and Conservation Act (42 

17 U.S.C. 6295(f)(3)) is amended by adding the following 

18 new subparagraph at the end: 

19 ‘‘(D) Notwithstanding any provision of this Act, the 

20 Secretary may consider, and prescribe, if the requirements 

21 of subsection (o) of this section are met, energy efficiency 

22 or energy use standards for electricity used for purposes 

23 of circulating air through duct work.’’. 
63

•HR 1640 IH 

1 SEC. 134. ENERGY LABELING. 

2 (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER

3 PRODUCT LABELING.—Section 324(a)(2) of the Energy 

4 Policy and Conservation Act (42 U.S.C. 6294(a)(2)) is 

5 amended by adding at the end the following: 

6 ‘‘(F) Not later than 3 months after the date of enact7 ment of this subparagraph, the Commission shall initiate 

8 a rulemaking to consider the effectiveness of the current 

9 consumer products labeling program in assisting con10 sumers in making purchasing decisions and improving en11 ergy efficiency and to consider changes to the labeling 

12 rules that would improve the effectiveness of consumer 

13 product labels. Such rulemaking shall be completed not 

14 later than 2 years after the date of enactment of this sub15 paragraph. 

16 ‘‘(G)(i) Not later than 18 months after date of enact17 ment of this subparagraph, the Commission shall prescribe 

18 by rule, pursuant to this section, labeling requirements for 

19 the electricity used by ceiling fans to circulate air in a 

20 room. 

21 ‘‘(ii) The rule prescribed under clause (i) shall apply 

22 to products manufactured after the later of—

23 ‘‘(I) January 1, 2009; or 

24 ‘‘(II) the date that is 60 days after the final 

25 rule is prescribed.’’. 
64

•HR 1640 IH 

1 (b) RULEMAKING ON LABELING FOR ADDITIONAL

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

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

4 by adding at the end the following: 

5 ‘‘(5) The Secretary or the Commission, as appro6 priate, may, for covered products referred to in sub7 sections (u) through (aa) of section 325, prescribe, by rule, 

8 pursuant to this section, labeling requirements for such 

9 products after a test procedure has been set pursuant to 

10 section 323. In the case of products to which TP–1 stand11 ards under section 325(y) apply, labeling requirements 

12 shall be based on the ‘Standard for the Labeling of Dis13 tribution Transformer Efficiency’ prescribed by the Na14 tional Electrical Manufacturers Association (NEMA TP–

15 3) as in effect upon the date of enactment of this para16 graph.’’. 

17 SEC. 135. PREEMPTION. 

18 Section 327 of the Energy Policy and Conservation 

19 Act (42 U.S.C. 6297) is amended by adding at the end 

20 the following: 

21 ‘‘(h) CEILING FANS.—Effective on January 1, 2006, 

22 this section shall apply to and supersede all State and local 

23 standards prescribed or enacted for ceiling fans and ceil24 ing fan light kits.’’. 
65

•HR 1640 IH 

1 SEC. 136. STATE CONSUMER PRODUCT ENERGY EFFI2 CIENCY STANDARDS. 

3 Section 327 of the Energy Policy and Conservation 

4 Act (42 U.S.C. 6297) is amended by adding at the end 

5 the following new subsection: 

6 ‘‘(h) LIMITATION ON PREEMPTION.—Subsections (a) 

7 and (b) shall not apply with respect to State regulation 

8 of energy consumption or water use of any covered prod9 uct during any period of time—

10 ‘‘(1) after the date which is 3 years after a 

11 Federal standard is required by law to be established 

12 or revised, but has not been established or revised; 

13 and 

14 ‘‘(2) before the date on which such Federal 

15 standard is established or revised.’’. 

16 Subtitle D—Public Housing 

17 SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVE18 MENTS FOR ASSISTED HOUSING. 

19 Section 251(b)(1) of the National Energy Conserva20 tion Policy Act (42 U.S.C. 8231(1)) is amended—

21 (1) by striking ‘‘financed with loans’’ and in22 serting ‘‘assisted’’; 

23 (2) by inserting after ‘‘1959,’’ the following: 

24 ‘‘which are eligible multifamily housing projects (as 

25 such term is defined in section 512 of the Multi26 family Assisted Housing Reform and Affordability 
66

•HR 1640 IH 

1 Act of 1997 (42 U.S.C. 1437f note)) and are subject 

2 to mortgage restructuring and rental assistance suf3 ficiency plans under such Act,’’; and 

4 (3) by inserting after the period at the end of 

5 the first sentence the following new sentence: ‘‘Such 

6 improvements may also include the installation of 

7 energy and water conserving fixtures and fittings 

8 that conform to the American Society of Mechanical 

9 Engineers/American National Standards Institute 

10 standards A112.19.2–1998 and A112.18.1–2000, or 

11 any revision thereto, applicable at the time of instal12 lation.’’. 

13 SEC. 147. ENERGY-EFFICIENT APPLIANCES. 

14 In purchasing appliances, a public housing agency 

15 shall purchase energy-efficient appliances that are Energy 

16 Star products or FEMP-designated products, as such 

17 terms are defined in section 553 of the National Energy 

18 Conservation Policy Act (as amended by this title), unless 

19 the purchase of energy-efficient appliances is not cost-ef20 fective to the agency. 

21 SEC. 149. ENERGY STRATEGY FOR HUD. 

22 The Secretary of Housing and Urban Development 

23 shall develop and implement an integrated strategy to re24 duce utility expenses through cost-effective energy con25 servation and efficiency measures and energy efficient de-
67

•HR 1640 IH 

1 sign and construction of public and assisted housing. The 

2 energy strategy shall include the development of energy 

3 reduction goals and incentives for public housing agencies. 

4 The Secretary shall submit a report to Congress, not later 

5 than 1 year after the date of the enactment of this Act, 

6 on the energy strategy and the actions taken by the De7 partment of Housing and Urban Development to monitor 

8 the energy usage of public housing agencies and shall sub9 mit an update every 2 years thereafter on progress in im10 plementing the strategy. 

11 TITLE II—RENEWABLE ENERGY 

12 Subtitle A—General Provisions 

13 SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RE14 SOURCES. 

15 (a) RESOURCE ASSESSMENT.—Not later than 6 

16 months after the date of enactment of this Act, and each 

17 year thereafter, the Secretary of Energy shall review the 

18 available assessments of renewable energy resources with19 in the United States, including solar, wind, biomass, ocean 

20 (tidal, wave, current, and thermal), geothermal, and hy21 droelectric energy resources, and undertake new assess22 ments as necessary, taking into account changes in market 

23 conditions, available technologies, and other relevant fac24 tors. 
68

•HR 1640 IH 

1 (b) CONTENTS OF REPORTS.—Not later than 1 year 

2 after the date of enactment of this Act, and each year 

3 thereafter, the Secretary shall publish a report based on 

4 the assessment under subsection (a). The report shall con5 tain—

6 (1) a detailed inventory describing the available 

7 amount and characteristics of the renewable energy 

8 resources; and 

9 (2) such other information as the Secretary be10 lieves would be useful in developing such renewable 

11 energy resources, including descriptions of sur12 rounding terrain, population and load centers, near13 by energy infrastructure, location of energy and 

14 water resources, and available estimates of the costs 

15 needed to develop each resource, together with an 

16 identification of any barriers to providing adequate 

17 transmission for remote sources of renewable energy 

18 resources to current and emerging markets, rec19 ommendations for removing or addressing such bar20 riers, and ways to provide access to the grid that do 

21 not unfairly disadvantage renewable or other energy 

22 producers. 

23 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

24 purposes of this section, there are authorized to be appro-
69

•HR 1640 IH 

1 priated to the Secretary of Energy $10,000,000 for each 

2 of fiscal years 2006 through 2010. 

3 SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

4 (a) INCENTIVE PAYMENTS.—Section 1212(a) of the 

5 Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is 

6 amended by striking ‘‘and which satisfies’’ and all that 

7 follows through ‘‘Secretary shall establish.’’ and inserting 

8 ‘‘. If there are insufficient appropriations to make full pay9 ments for electric production from all qualified renewable 

10 energy facilities in any given year, the Secretary shall as11 sign 60 percent of appropriated funds for that year to fa12 cilities that use solar, wind, geothermal, or closed-loop 

13 (dedicated energy crops) biomass technologies to generate 

14 electricity, and assign the remaining 40 percent to other 

15 projects. The Secretary may, after transmitting to Con16 gress an explanation of the reasons therefor, alter the per17 centage requirements of the preceding sentence.’’. 

18 (b) QUALIFIED RENEWABLE ENERGY FACILITY.—

19 Section 1212(b) of the Energy Policy Act of 1992 (42 

20 U.S.C. 13317(b)) is amended—

21 (1) by striking ‘‘a State or any political’’ and 

22 all that follows through ‘‘nonprofit electrical cooper23 ative’’ and inserting ‘‘a not-for-profit electric cooper24 ative, a public utility described in section 115 of the 

25 Internal Revenue Code of 1986, a State, Common-
70

•HR 1640 IH 

1 wealth, territory, or possession of the United States 

2 or the District of Columbia, or a political subdivision 

3 thereof, or an Indian tribal government or subdivi4 sion thereof,’’; and 

5 (2) by inserting ‘‘landfill gas, livestock methane, 

6 ocean (tidal, wave, current, and thermal),’’ after 

7 ‘‘wind, biomass,’’. 

8 (c) ELIGIBILITY WINDOW.—Section 1212(c) of the 

9 Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is 

10 amended by striking ‘‘during the 10-fiscal year period be11 ginning with the first full fiscal year occurring after the 

12 enactment of this section’’ and inserting ‘‘after October 

13 1, 2005, and before October 1, 2015’’. 

14 (d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of 

15 the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) 

16 is amended by inserting ‘‘landfill gas, livestock methane, 

17 ocean (tidal, wave, current, and thermal),’’ after ‘‘wind, 

18 biomass,’’. 

19 (e) SUNSET.—Section 1212(f) of the Energy Policy 

20 Act of 1992 (42 U.S.C. 13317(f)) is amended by striking 

21 ‘‘the expiration of’’ and all that follows through ‘‘of this 

22 section’’ and inserting ‘‘September 30, 2025’’. 

23 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

24 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 

25 13317(g)) is amended to read as follows: 
71

•HR 1640 IH 

1 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—

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

3 there are authorized to be appropriated such sums 

4 as may be necessary to carry out this section for fis5 cal years 2005 through 2025. 

6 ‘‘(2) AVAILABILITY OF FUNDS.—Funds made 

7 available under paragraph (1) shall remain available 

8 until expended.’’. 

9 SEC. 203. FEDERAL PURCHASE REQUIREMENT. 

10 (a) REQUIREMENT.—The President, acting through 

11 the Secretary of Energy, shall seek to ensure that, to the 

12 extent economically feasible and technically practicable, of 

13 the total amount of electric energy the Federal Govern14 ment consumes during any fiscal year, the following 

15 amounts shall be renewable energy: 

16 (1) Not less than 3 percent in fiscal years 2007 

17 through 2009. 

18 (2) Not less than 5 percent in fiscal years 2010 

19 through 2012. 

20 (3) Not less than 7.5 percent in fiscal year 

21 2013 and each fiscal year thereafter. 

22 (b) DEFINITIONS.—In this section: 

23 (1) BIOMASS.—The term ‘‘biomass’’ means any 

24 solid, nonhazardous, cellulosic material that is de25 rived from—
72

•HR 1640 IH 

1 (A) any of the following forest-related re2 sources: mill residues, precommercial thinnings, 

3 slash, and brush, or nonmerchantable material; 

4 (B) solid wood waste materials, including 

5 waste pallets, crates, dunnage, manufacturing 

6 and construction wood wastes (other than pres7 sure-treated, chemically-treated, or painted 

8 wood wastes), and landscape or right-of-way 

9 tree trimmings, but not including municipal 

10 solid waste (garbage), gas derived from the bio11 degradation of solid waste, or paper that is 

12 commonly recycled; 

13 (C) agriculture wastes, including orchard 

14 tree crops, vineyard, grain, legumes, sugar, and 

15 other crop by-products or residues, and live16 stock waste nutrients; or 

17 (D) a plant that is grown exclusively as a 

18 fuel for the production of electricity. 

19 (2) RENEWABLE ENERGY.—The term ‘‘renew20 able energy’’ means electric energy generated from 

21 solar, wind, biomass, landfill gas, ocean (tidal, wave, 

22 current, and thermal), geothermal, municipal solid 

23 waste, or new hydroelectric generation capacity 

24 achieved from increased efficiency or additions of 

25 new capacity at an existing hydroelectric project. 
73

•HR 1640 IH 

1 (c) CALCULATION.—For purposes of determining 

2 compliance with the requirement of this section, the 

3 amount of renewable energy shall be doubled if—

4 (1) the renewable energy is produced and used 

5 on-site at a Federal facility; 

6 (2) the renewable energy is produced on Fed7 eral lands and used at a Federal facility; or 

8 (3) the renewable energy is produced on Indian 

9 land as defined in title XXVI of the Energy Policy 

10 Act of 1992 (25 U.S.C. 3501 et. seq.) and used at 

11 a Federal facility. 

12 (d) REPORT.—Not later than April 15, 2007, and 

13 every 2 years thereafter, the Secretary of Energy shall 

14 provide a report to Congress on the progress of the Fed15 eral Government in meeting the goals established by this 

16 section. 

17 SEC. 204. INSULAR AREAS ENERGY SECURITY. 

18 Section 604 of the Act entitled ‘‘An Act to authorize 

19 appropriations for certain insular areas of the United 

20 States, and for other purposes’’, approved December 24, 

21 1980 (48 U.S.C. 1492), is amended—

22 (1) in subsection (a)(4) by striking the period 

23 and inserting a semicolon; 

24 (2) by adding at the end of subsection (a) the 

25 following new paragraphs: 
74

•HR 1640 IH 

1 ‘‘(5) electric power transmission and distribu2 tion lines in insular areas are inadequate to with3 stand damage caused by the hurricanes and ty4 phoons which frequently occur in insular areas and 

5 such damage often costs millions of dollars to repair; 

6 and 

7 ‘‘(6) the refinement of renewable energy tech8 nologies since the publication of the 1982 Territorial 

9 Energy Assessment prepared pursuant to subsection 

10 (c) reveals the need to reassess the state of energy 

11 production, consumption, infrastructure, reliance on 

12 imported energy, opportunities for energy conserva13 tion and increased energy efficiency, and indigenous 

14 sources in regard to the insular areas.’’; 

15 (3) by amending subsection (e) to read as fol16 lows: 

17 ‘‘(e)(1) The Secretary of the Interior, in consultation 

18 with the Secretary of Energy and the head of government 

19 of each insular area, shall update the plans required under 

20 subsection (c) by—

21 ‘‘(A) updating the contents required by sub22 section (c); 

23 ‘‘(B) drafting long-term energy plans for such 

24 insular areas with the objective of reducing, to the 

25 extent feasible, their reliance on energy imports by 
75

•HR 1640 IH 

1 the year 2012, increasing energy conservation and 

2 energy efficiency, and maximizing, to the extent fea3 sible, use of indigenous energy sources; and 

4 ‘‘(C) drafting long-term energy transmission 

5 line plans for such insular areas with the objective 

6 that the maximum percentage feasible of electric 

7 power transmission and distribution lines in each in8 sular area be protected from damage caused by hur9 ricanes and typhoons. 

10 ‘‘(2) Not later than December 31, 2007, the Sec11 retary of the Interior shall submit to Congress the updated 

12 plans for each insular area required by this subsection.’’; 

13 and 

14 (4) by amending subsection (g)(4) to read as 

15 follows: 

16 ‘‘(4) POWER LINE GRANTS FOR INSULAR

17 AREAS.—

18 ‘‘(A) IN GENERAL.—The Secretary of the 

19 Interior is authorized to make grants to govern20 ments of insular areas of the United States to 

21 carry out eligible projects to protect electric 

22 power transmission and distribution lines in 

23 such insular areas from damage caused by hur24 ricanes and typhoons. 
76

•HR 1640 IH 

1 ‘‘(B) ELIGIBLE PROJECTS.—The Secretary 

2 may award grants under subparagraph (A) only 

3 to governments of insular areas of the United 

4 States that submit written project plans to the 

5 Secretary for projects that meet the following 

6 criteria: 

7 ‘‘(i) The project is designed to protect 

8 electric power transmission and distribu9 tion lines located in 1 or more of the insu10 lar areas of the United States from dam11 age caused by hurricanes and typhoons. 

12 ‘‘(ii) The project is likely to substan13 tially reduce the risk of future damage, 

14 hardship, loss, or suffering. 

15 ‘‘(iii) The project addresses 1 or more 

16 problems that have been repetitive or that 

17 pose a significant risk to public health and 

18 safety. 

19 ‘‘(iv) The project is not likely to cost 

20 more than the value of the reduction in di21 rect damage and other negative impacts 

22 that the project is designed to prevent or 

23 mitigate. The cost benefit analysis required 

24 by this criterion shall be computed on a 

25 net present value basis. 
77

•HR 1640 IH 

1 ‘‘(v) The project design has taken into 

2 consideration long-term changes to the 

3 areas and persons it is designed to protect 

4 and has manageable future maintenance 

5 and modification requirements. 

6 ‘‘(vi) The project plan includes an 

7 analysis of a range of options to address 

8 the problem it is designed to prevent or 

9 mitigate and a justification for the selec10 tion of the project in light of that analysis. 

11 ‘‘(vii) The applicant has demonstrated 

12 to the Secretary that the matching funds 

13 required by subparagraph (D) are avail14 able. 

15 ‘‘(C) PRIORITY.—When making grants 

16 under this paragraph, the Secretary shall give 

17 priority to grants for projects which are likely 

18 to—

19 ‘‘(i) have the greatest impact on re20 ducing future disaster losses; and 

21 ‘‘(ii) best conform with plans that 

22 have been approved by the Federal Govern23 ment or the government of the insular area 

24 where the project is to be carried out for 
78

•HR 1640 IH 

1 development or hazard mitigation for that 

2 insular area. 

3 ‘‘(D) MATCHING REQUIREMENT.—The 

4 Federal share of the cost for a project for which 

5 a grant is provided under this paragraph shall 

6 not exceed 75 percent of the total cost of that 

7 project. The non-Federal share of the cost may 

8 be provided in the form of cash or services. 

9 ‘‘(E) TREATMENT OF FUNDS FOR CERTAIN

10 PURPOSES.—Grants provided under this para11 graph shall not be considered as income, a re12 source, or a duplicative program when deter13 mining eligibility or benefit levels for Federal 

14 major disaster and emergency assistance. 

15 ‘‘(F) AUTHORIZATION OF APPROPRIA16 TIONS.—There are authorized to be appro17 priated to carry out this paragraph $5,000,000 

18 for each fiscal year beginning after the date of 

19 the enactment of this paragraph.’’. 

20 SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC 

21 BUILDINGS. 

22 (a) IN GENERAL.—Part 4 of title V of the National 

23 Energy Conservation Policy Act (42 U.S.C. 8271 et seq.) 

24 is amended by adding at the end the following: 
79

•HR 1640 IH 

1 ‘‘SEC. 570. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC 

2 BUILDINGS. 

3 ‘‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION

4 PROGRAM.—

5 ‘‘(1) IN GENERAL.—The Secretary may estab6 lish a photovoltaic energy commercialization pro7 gram for the procurement and installation of photo8 voltaic solar electric systems for electric production 

9 in new and existing public buildings. 

10 ‘‘(2) PURPOSES.—The purposes of the program 

11 shall be to accomplish the following: 

12 ‘‘(A) To accelerate the growth of a com13 mercially viable photovoltaic industry to make 

14 this energy system available to the general pub15 lic as an option which can reduce the national 

16 consumption of fossil fuel. 

17 ‘‘(B) To reduce the fossil fuel consumption 

18 and costs of the Federal Government. 

19 ‘‘(C) To attain the goal of installing solar 

20 energy systems in 20,000 Federal buildings by 

21 2010, as contained in the Federal Government’s 

22 Million Solar Roof Initiative of 1997. 

23 ‘‘(D) To stimulate the general use within 

24 the Federal Government of life-cycle costing 

25 and innovative procurement methods. 
80

•HR 1640 IH 

1 ‘‘(E) To develop program performance 

2 data to support policy decisions on future incen3 tive programs with respect to energy. 

4 ‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR

5 ELECTRIC SYSTEMS.—

6 ‘‘(A) IN GENERAL.—The program shall 

7 provide for the acquisition of photovoltaic solar 

8 electric systems and associated storage capa9 bility for use in public buildings. 

10 ‘‘(B) ACQUISITION LEVELS.—The acquisi11 tion of photovoltaic electric systems shall be at 

12 a level substantial enough to allow use of low13 cost production techniques with at least 150 

14 megawatts (peak) cumulative acquired during 

15 the 5 years of the program. 

16 ‘‘(4) ADMINISTRATION.—The Secretary shall 

17 administer the program and shall—

18 ‘‘(A) issue such rules and regulations as 

19 may be appropriate to monitor and assess the 

20 performance and operation of photovoltaic solar 

21 electric systems installed pursuant to this sub22 section; 

23 ‘‘(B) develop innovative procurement strat24 egies for the acquisition of such systems; and 
81

•HR 1640 IH 

1 ‘‘(C) transmit to Congress an annual re2 port on the results of the program. 

3 ‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PRO4 GRAM.—

5 ‘‘(1) IN GENERAL.—Not later than 60 days 

6 after the date of enactment of this section, the Sec7 retary shall establish a photovoltaic solar energy sys8 tems evaluation program to evaluate such photo9 voltaic solar energy systems as are required in public 

10 buildings. 

11 ‘‘(2) PROGRAM REQUIREMENT.—In evaluating 

12 photovoltaic solar energy systems under the pro13 gram, the Secretary shall ensure that such systems 

14 reflect the most advanced technology. 

15 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.—

16 ‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA17 TION PROGRAM.—There are authorized to be appro18 priated to carry out subsection (a) $50,000,000 for 

19 each of fiscal years 2006 through 2010. Such sums 

20 shall remain available until expended. 

21 ‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION

22 PROGRAM.—There are authorized to be appropriated 

23 to carry out subsection (b) $10,000,000 for each of 

24 fiscal years 2006 through 2010. Such sums shall re25 main available until expended.’’. 
82

•HR 1640 IH 

1 (b) CONFORMING AMENDMENT.—The table of sec2 tions for the National Energy Conservation Policy Act is 

3 amended by inserting after the item relating to section 

4 569 the following:

‘‘Sec. 570. Use of photovoltaic energy in public buildings.’’.

5 SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE 

6 OF FOREST BIOMASS FOR ELECTRIC ENERGY, 

7 USEFUL HEAT, TRANSPORTATION FUELS, PE8 TROLEUM-BASED PRODUCT SUBSTITUTES, 

9 AND OTHER COMMERCIAL PURPOSES. 

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

11 (1) Thousands of communities in the United 

12 States, many located near Federal lands, are at risk 

13 to wildfire. Approximately 190,000,000 acres of land 

14 managed by the Secretary of Agriculture and the 

15 Secretary of the Interior are at risk of catastrophic 

16 fire in the near future. The accumulation of heavy 

17 forest fuel loads continues to increase as a result of 

18 disease, insect infestations, and drought, further 

19 raising the risk of fire each year. 

20 (2) In addition, more than 70,000,000 acres 

21 across all land ownerships are at risk to higher than 

22 normal mortality over the next 15 years from insect 

23 infestation and disease. High levels of tree mortality 

24 from insects and disease result in increased fire risk, 

25 loss of old growth, degraded watershed conditions, 
83

•HR 1640 IH 

1 and changes in species diversity and productivity, as 

2 well as diminished fish and wildlife habitat and de3 creased timber values. 

4 (3) Preventive treatments such as removing fuel 

5 loading, ladder fuels, and hazard trees, planting 

6 proper species mix and restoring and protecting 

7 early successional habitat, and other specific restora8 tion treatments designed to reduce the susceptibility 

9 of forest land, woodland, and rangeland to insect 

10 outbreaks, disease, and catastrophic fire present the 

11 greatest opportunity for long-term forest health by 

12 creating a mosaic of species-mix and age distribu13 tion. Such prevention treatments are widely acknowl14 edged to be more successful and cost effective than 

15 suppression treatments in the case of insects, dis16 ease, and fire. 

17 (4) The byproducts of preventive treatment 

18 (wood, brush, thinnings, chips, slash, and other haz19 ardous fuels) removed from forest lands, woodlands 

20 and rangelands represent an abundant supply of bio21 mass for biomass-to-energy facilities and raw mate22 rial for business. There are currently few markets 

23 for the extraordinary volumes of byproducts being 

24 generated as a result of the necessary large-scale 

25 preventive treatment activities. 
84

•HR 1640 IH 

1 (5) The United States should—

2 (A) promote economic and entrepreneurial 

3 opportunities in using byproducts removed 

4 through preventive treatment activities related 

5 to hazardous fuels reduction, disease, and insect 

6 infestation; and 

7 (B) develop and expand markets for tradi8 tionally underused wood and biomass as an out9 let for byproducts of preventive treatment ac10 tivities. 

11 (b) DEFINITIONS.—In this section: 

12 (1) BIOMASS.—The term ‘‘biomass’’ means 

13 trees and woody plants, including limbs, tops, nee14 dles, and other woody parts, and byproducts of pre15 ventive treatment, such as wood, brush, thinnings, 

16 chips, and slash, that are removed—

17 (A) to reduce hazardous fuels; or 

18 (B) to reduce the risk of or to contain dis19 ease or insect infestation. 

20 (2) INDIAN TRIBE.—The term ‘‘Indian tribe’’ 

21 has the meaning given the term in section 4(e) of 

22 the Indian Self-Determination and Education Assist23 ance Act (25 U.S.C. 450b(e)). 

24 (3) PERSON.—The term ‘‘person’’ includes—

25 (A) an individual; 
85

•HR 1640 IH 

1 (B) a community (as determined by the 

2 Secretary concerned); 

3 (C) an Indian tribe; 

4 (D) a small business, micro-business, or a 

5 corporation that is incorporated in the United 

6 States; and 

7 (E) a nonprofit organization. 

8 (4) PREFERRED COMMUNITY.—The term ‘‘pre9 ferred community’’ means—

10 (A) any town, township, municipality, or 

11 other similar unit of local government (as deter12 mined by the Secretary concerned) that—

13 (i) has a population of not more than 

14 50,000 individuals; and 

15 (ii) the Secretary concerned, in the 

16 sole discretion of the Secretary concerned, 

17 determines contains or is located near 

18 land, the condition of which is at signifi19 cant risk of catastrophic wildfire, disease, 

20 or insect infestation or which suffers from 

21 disease or insect infestation; or 

22 (B) any county that—

23 (i) is not contained within a metro24 politan statistical area; and 
86

•HR 1640 IH 

1 (ii) the Secretary concerned, in the 

2 sole discretion of the Secretary concerned, 

3 determines contains or is located near 

4 land, the condition of which is at signifi5 cant risk of catastrophic wildfire, disease, 

6 or insect infestation or which suffers from 

7 disease or insect infestation. 

8 (5) SECRETARY CONCERNED.—The term ‘‘Sec9 retary concerned’’ means—

10 (A) the Secretary of Agriculture with re11 spect to National Forest System lands; and 

12 (B) the Secretary of the Interior with re13 spect to Federal lands under the jurisdiction of 

14 the Secretary of the Interior and Indian lands. 

15 (c) BIOMASS COMMERCIAL USE GRANT PROGRAM.—

16 (1) IN GENERAL.—The Secretary concerned 

17 may make grants to any person that owns or oper18 ates a facility that uses biomass as a raw material 

19 to produce electric energy, sensible heat, transpor20 tation fuels, or substitutes for petroleum-based prod21 ucts to offset the costs incurred to purchase biomass 

22 for use by such facility. 

23 (2) GRANT AMOUNTS.—A grant under this sub24 section may not exceed $20 per green ton of biomass 

25 delivered. 
87

•HR 1640 IH 

1 (3) MONITORING OF GRANT RECIPIENT ACTIVI2 TIES.—As a condition of a grant under this sub3 section, the grant recipient shall keep such records 

4 as the Secretary concerned may require to fully and 

5 correctly disclose the use of the grant funds and all 

6 transactions involved in the purchase of biomass. 

7 Upon notice by a representative of the Secretary 

8 concerned, the grant recipient shall afford the rep9 resentative reasonable access to the facility that pur10 chases or uses biomass and an opportunity to exam11 ine the inventory and records of the facility. 

12 (d) IMPROVED BIOMASS USE GRANT PROGRAM.—

13 (1) IN GENERAL.—The Secretary concerned 

14 may make grants to persons to offset the cost of 

15 projects to develop or research opportunities to im16 prove the use of, or add value to, biomass. In mak17 ing such grants, the Secretary concerned shall give 

18 preference to persons in preferred communities. 

19 (2) SELECTION.—The Secretary concerned shall 

20 select a grant recipient under paragraph (1) after 

21 giving consideration to the anticipated public bene22 fits of the project, including the potential to develop 

23 thermal or electric energy resources or affordable en24 ergy, opportunities for the creation or expansion of 
88

•HR 1640 IH 

1 small businesses and micro-businesses, and the po2 tential for new job creation. 

3 (3) GRANT AMOUNT.—A grant under this sub4 section may not exceed $500,000. 

5 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated $50,000,000 for each 

7 of the fiscal years 2006 through 2016 to carry out this 

8 section. 

9 (f) REPORT.—Not later than October 1, 2012, the 

10 Secretary of Agriculture, in consultation with the Sec11 retary of the Interior, shall submit to the Committee on 

12 Energy and Natural Resources and the Committee on Ag13 riculture, Nutrition, and Forestry of the Senate and the 

14 Committee on Resources, the Committee on Energy and 

15 Commerce, and the Committee on Agriculture of the 

16 House of Representatives a report describing the results 

17 of the grant programs authorized by this section. The re18 port shall include the following: 

19 (1) An identification of the size, type, and the 

20 use of biomass by persons that receive grants under 

21 this section. 

22 (2) The distance between the land from which 

23 the biomass was removed and the facility that used 

24 the biomass. 
89

•HR 1640 IH 

1 (3) The economic impacts, particularly new job 

2 creation, resulting from the grants to and operation 

3 of the eligible operations. 

4 SEC. 207. BIOBASED PRODUCTS. 

5 Section 9002(c)(1) of the Farm Security and Rural 

6 Investment Act of 2002 (7 U.S.C. 8102(c)(1)) is amended 

7 by inserting ‘‘or such items that comply with the regula8 tions issued under section 103 of Public Law 100–556 (42 

9 U.S.C. 6914b–1)’’ after ‘‘practicable’’. 

10 SEC. 208. RENEWABLE ENERGY SECURITY. 

11 (a) WEATHERIZATION ASSISTANCE.—Section 415(c) 

12 of the Energy Conservation and Production Act (42 

13 U.S.C. 6865(c)) is amended—

14 (1) in paragraph (1), by striking ‘‘in paragraph 

15 (3)’’ and inserting ‘‘in paragraphs (3) and (4)’’; 

16 (2) in paragraph (3), by striking ‘‘$2,500 per 

17 dwelling unit average provided in paragraph (1)’’ 

18 and inserting ‘‘dwelling unit averages provided in 

19 paragraphs (1) and (4)’’; and 

20 (3) by adding at the end the following new 

21 paragraphs: 

22 ‘‘(4) The expenditure of financial assistance provided 

23 under this part for labor, weatherization materials, and 

24 related matters for a renewable energy system shall not 

25 exceed an average of $3,000 per dwelling unit. 
90

•HR 1640 IH 

1 ‘‘(5)(A) The Secretary shall by regulations—

2 ‘‘(i) establish the criteria which are to be used 

3 in prescribing performance and quality standards 

4 under paragraph (6)(A)(ii) or in specifying any form 

5 of renewable energy under paragraph (6)(A)(i)(I); 

6 and 

7 ‘‘(ii) establish a procedure under which a manu8 facturer of an item may request the Secretary to 

9 certify that the item will be treated, for purposes of 

10 this paragraph, as a renewable energy system. 

11 ‘‘(B) The Secretary shall make a final determination 

12 with respect to any request filed under subparagraph 

13 (A)(ii) within 1 year after the filing of the request, to14 gether with any information required to be filed with such 

15 request under subparagraph (A)(ii). 

16 ‘‘(C) Each month the Secretary shall publish a report 

17 of any request under subparagraph (A)(ii) which has been 

18 denied during the preceding month and the reasons for 

19 the denial. 

20 ‘‘(D) The Secretary shall not specify any form of re21 newable energy under paragraph (6)(A)(i)(I) unless the 

22 Secretary determines that—

23 ‘‘(i) there will be a reduction in oil or natural 

24 gas consumption as a result of such specification; 
91

•HR 1640 IH 

1 ‘‘(ii) such specification will not result in an in2 creased use of any item which is known to be, or 

3 reasonably suspected to be, environmentally haz4 ardous or a threat to public health or safety; and 

5 ‘‘(iii) available Federal subsidies do not make 

6 such specification unnecessary or inappropriate (in 

7 the light of the most advantageous allocation of eco8 nomic resources). 

9 ‘‘(6) In this subsection—

10 ‘‘(A) the term ‘renewable energy system’ means 

11 a system which—

12 ‘‘(i) when installed in connection with a 

13 dwelling, transmits or uses—

14 ‘‘(I) solar energy, energy derived from 

15 the geothermal deposits, energy derived 

16 from biomass, or any other form of renew17 able energy which the Secretary specifies 

18 by regulations, for the purpose of heating 

19 or cooling such dwelling or providing hot 

20 water or electricity for use within such 

21 dwelling; or 

22 ‘‘(II) wind energy for nonbusiness res23 idential purposes; 
92

•HR 1640 IH 

1 ‘‘(ii) meets the performance and quality 

2 standards (if any) which have been prescribed 

3 by the Secretary by regulations; 

4 ‘‘(iii) in the case of a combustion rated 

5 system, has a thermal efficiency rating of at 

6 least 75 percent; and 

7 ‘‘(iv) in the case of a solar system, has a 

8 thermal efficiency rating of at least 15 percent; 

9 and 

10 ‘‘(B) the term ‘biomass’ means any organic 

11 matter that is available on a renewable or recurring 

12 basis, including agricultural crops and trees, wood 

13 and wood wastes and residues, plants (including 

14 aquatic plants), grasses, residues, fibers, and animal 

15 wastes, municipal wastes, and other waste mate16 rials.’’. 

17 (b) DISTRICT HEATING AND COOLING PROGRAMS.—

18 Section 172 of the Energy Policy Act of 1992 (42 U.S.C. 

19 13451 note) is amended—

20 (1) in subsection (a)—

21 (A) by striking ‘‘and’’ at the end of para22 graph (3); 

23 (B) by striking the period at the end of 

24 paragraph (4) and inserting ‘‘; and’’; and 
93

•HR 1640 IH 

1 (C) by adding at the end the following new 

2 paragraph: 

3 ‘‘(5) evaluate the use of renewable energy sys4 tems (as such term is defined in section 415(c) of 

5 the Energy Conservation and Production Act (42 

6 U.S.C. 6865(c))) in residential buildings.’’; and 

7 (2) in subsection (b), by striking ‘‘this Act’’ and 

8 inserting ‘‘the Energy Policy Act of 2005’’. 

9 (c) DEFINITION OF BIOMASS.—Section 203(2) of the 

10 Biomass Energy and Alcohol Fuels Act of 1980 (42 

11 U.S.C. 8802(2)) is amended to read as follows: 

12 ‘‘(2) The term ‘biomass’ means any organic 

13 matter that is available on a renewable or recurring 

14 basis, including agricultural crops and trees, wood 

15 and wood wastes and residues, plants (including 

16 aquatic plants), grasses, residues, fibers, and animal 

17 wastes, municipal wastes, and other waste mate18 rials.’’. 

19 (d) REBATE PROGRAM.—

20 (1) ESTABLISHMENT.—The Secretary of En21 ergy shall establish a program providing rebates for 

22 consumers for expenditures made for the installation 

23 of a renewable energy system in connection with a 

24 dwelling unit or small business. 
94

•HR 1640 IH 

1 (2) AMOUNT OF REBATE.—Rebates provided 

2 under the program established under paragraph (1) 

3 shall be in an amount not to exceed the lesser of—

4 (A) 25 percent of the expenditures de5 scribed in paragraph (1) made by the con6 sumer; or 

7 (B) $3,000. 

8 (3) DEFINITION.—For purposes of this sub9 section, the term ‘‘renewable energy system’’ has the 

10 meaning given that term in section 415(c)(6)(A) of 

11 the Energy Conservation and Production Act (42 

12 U.S.C. 6865(c)(6)(A)), as added by subsection 

13 (a)(3) of this section. 

14 (4) AUTHORIZATION OF APPROPRIATIONS.—

15 There are authorized to be appropriated to the Sec16 retary of Energy for carrying out this subsection, to 

17 remain available until expended—

18 (A) $150,000,000 for fiscal year 2006; 

19 (B) $150,000,000 for fiscal year 2007; 

20 (C) $200,000,000 for fiscal year 2008; 

21 (D) $250,000,000 for fiscal year 2009; 

22 and 

23 (E) $250,000,000 for fiscal year 2010. 

24 (e) RENEWABLE FUEL INVENTORY.—Not later than 

25 180 days after the date of enactment of this Act, the Sec-
95

•HR 1640 IH 

1 retary of Energy shall transmit to Congress a report con2 taining—

3 (1) an inventory of renewable fuels available for 

4 consumers; and 

5 (2) a projection of future inventories of renew6 able fuels based on the incentives provided in this 

7 section 

8 Subtitle C—Hydroelectric 

9 PART I—ALTERNATIVE CONDITIONS 

10 SEC. 231. ALTERNATIVE CONDITIONS AND FISHWAYS. 

11 (a) FEDERAL RESERVATIONS.—Section 4(e) of the 

12 Federal Power Act (16 U.S.C. 797(e)) is amended by in13 serting after ‘‘adequate protection and utilization of such 

14 reservation.’’ at the end of the first proviso the following: 

15 ‘‘The license applicant shall be entitled to a determination 

16 on the record, after opportunity for an expedited agency 

17 trial-type hearing of any disputed issues of material fact, 

18 with respect to such conditions. Such hearing may be con19 ducted in accordance with procedures established by agen20 cy regulation in consultation with the Federal Energy 

21 Regulatory Commission.’’. 

22 (b) FISHWAYS.—Section 18 of the Federal Power Act 

23 (16 U.S.C. 811) is amended by inserting after ‘‘and such 

24 fishways as may be prescribed by the Secretary of Com25 merce.’’ the following: ‘‘The license applicant shall be enti-
96

•HR 1640 IH 

1 tled to a determination on the record, after opportunity 

2 for an expedited agency trial-type hearing of any disputed 

3 issues of material fact, with respect to such fishways. Such 

4 hearing may be conducted in accordance with procedures 

5 established by agency regulation in consultation with the 

6 Federal Energy Regulatory Commission.’’. 

7 (c) ALTERNATIVE CONDITIONS AND PRESCRIP8 TIONS.—Part I of the Federal Power Act (16 U.S.C. 791a 

9 et seq.) is amended by adding the following new section 

10 at the end thereof: 

11 ‘‘SEC. 33. ALTERNATIVE CONDITIONS AND PRESCRIPTIONS. 

12 ‘‘(a) ALTERNATIVE CONDITIONS.—(1) Whenever any 

13 person applies for a license for any project works within 

14 any reservation of the United States, and the Secretary 

15 of the department under whose supervision such reserva16 tion falls (referred to in this subsection as ‘the Secretary’) 

17 deems a condition to such license to be necessary under 

18 the first proviso of section 4(e), the license applicant may 

19 propose an alternative condition. 

20 ‘‘(2) Notwithstanding the first proviso of section 4(e), 

21 the Secretary shall accept the proposed alternative condi22 tion referred to in paragraph (1), and the Commission 

23 shall include in the license such alternative condition, if 

24 the Secretary determines, based on substantial evidence 
97

•HR 1640 IH 

1 provided by the license applicant or otherwise available to 

2 the Secretary, that such alternative condition—

3 ‘‘(A) provides for the adequate protection and 

4 utilization of the reservation; and 

5 ‘‘(B) will either—

6 ‘‘(i) cost less to implement; or 

7 ‘‘(ii) result in improved operation of the 

8 project works for electricity production, 

9 as compared to the condition initially deemed nec10 essary by the Secretary. 

11 ‘‘(3) The Secretary shall submit into the public 

12 record of the Commission proceeding with any condition 

13 under section 4(e) or alternative condition it accepts under 

14 this section, a written statement explaining the basis for 

15 such condition, and reason for not accepting any alter16 native condition under this section. The written statement 

17 must demonstrate that the Secretary gave equal consider18 ation to the effects of the condition adopted and alter19 natives not accepted on energy supply, distribution, cost, 

20 and use; flood control; navigation; water supply; and air 

21 quality (in addition to the preservation of other aspects 

22 of environmental quality); based on such information as 

23 may be available to the Secretary, including information 

24 voluntarily provided in a timely manner by the applicant 

25 and others. The Secretary shall also submit, together with 
98

•HR 1640 IH 

1 the aforementioned written statement, all studies, data, 

2 and other factual information available to the Secretary 

3 and relevant to the Secretary’s decision. 

4 ‘‘(4) Nothing in this section shall prohibit other inter5 ested parties from proposing alternative conditions. 

6 ‘‘(5) If the Secretary does not accept an applicant’s 

7 alternative condition under this section, and the Commis8 sion finds that the Secretary’s condition would be incon9 sistent with the purposes of this part, or other applicable 

10 law, the Commission may refer the dispute to the Commis11 sion’s Dispute Resolution Service. The Dispute Resolution 

12 Service shall consult with the Secretary and the Commis13 sion and issue a non-binding advisory within 90 days. The 

14 Secretary may accept the Dispute Resolution Service advi15 sory unless the Secretary finds that the recommendation 

16 will not provide for the adequate protection and utilization 

17 of the reservation. The Secretary shall submit the advisory 

18 and the Secretary’s final written determination into the 

19 record of the Commission’s proceeding. 

20 ‘‘(b) ALTERNATIVE PRESCRIPTIONS.—(1) Whenever 

21 the Secretary of the Interior or the Secretary of Commerce 

22 prescribes a fishway under section 18, the license appli23 cant or licensee may propose an alternative to such pre24 scription to construct, maintain, or operate a fishway. 
99

•HR 1640 IH 

1 ‘‘(2) Notwithstanding section 18, the Secretary of the 

2 Interior or the Secretary of Commerce, as appropriate, 

3 shall accept and prescribe, and the Commission shall re4 quire, the proposed alternative referred to in paragraph 

5 (1), if the Secretary of the appropriate department deter6 mines, based on substantial evidence provided by the li7 censee or otherwise available to the Secretary, that such 

8 alternative—

9 ‘‘(A) will be no less protective than the fishway 

10 initially prescribed by the Secretary; and 

11 ‘‘(B) will either—

12 ‘‘(i) cost less to implement; or 

13 ‘‘(ii) result in improved operation of the 

14 project works for electricity production, 

15 as compared to the fishway initially deemed nec16 essary by the Secretary. 

17 ‘‘(3) The Secretary concerned shall submit into the 

18 public record of the Commission proceeding with any pre19 scription under section 18 or alternative prescription it ac20 cepts under this section, a written statement explaining 

21 the basis for such prescription, and reason for not accept22 ing any alternative prescription under this section. The 

23 written statement must demonstrate that the Secretary 

24 gave equal consideration to the effects of the condition 

25 adopted and alternatives not accepted on energy supply, 
100

•HR 1640 IH 

1 distribution, cost, and use; flood control; navigation; water 

2 supply; and air quality (in addition to the preservation of 

3 other aspects of environmental quality); based on such in4 formation as may be available to the Secretary, including 

5 information voluntarily provided in a timely manner by the 

6 applicant and others. The Secretary shall also submit, to7 gether with the aforementioned written statement, all 

8 studies, data, and other factual information available to 

9 the Secretary and relevant to the Secretary’s decision. 

10 ‘‘(4) Nothing in this section shall prohibit other inter11 ested parties from proposing alternative prescriptions. 

12 ‘‘(5) If the Secretary concerned does not accept an 

13 applicant’s alternative prescription under this section, and 

14 the Commission finds that the Secretary’s prescription 

15 would be inconsistent with the purposes of this part, or 

16 other applicable law, the Commission may refer the dis17 pute to the Commission’s Dispute Resolution Service. The 

18 Dispute Resolution Service shall consult with the Sec19 retary and the Commission and issue a non-binding advi20 sory within 90 days. The Secretary may accept the Dis21 pute Resolution Service advisory unless the Secretary 

22 finds that the recommendation will be less protective than 

23 the fishway initially prescribed by the Secretary. The Sec24 retary shall submit the advisory and the Secretary’s final 
101

•HR 1640 IH 

1 written determination into the record of the Commission’s 

2 proceeding.’’. 

3 PART II—ADDITIONAL HYDROPOWER 

4 SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES. 

5 (a) INCENTIVE PAYMENTS.—For electric energy gen6 erated and sold by a qualified hydroelectric facility during 

7 the incentive period, the Secretary of Energy (referred to 

8 in this section as the ‘‘Secretary’’) shall make, subject to 

9 the availability of appropriations, incentive payments to 

10 the owner or operator of such facility. The amount of such 

11 payment made to any such owner or operator shall be as 

12 determined under subsection (e) of this section. Payments 

13 under this section may only be made upon receipt by the 

14 Secretary of an incentive payment application which estab15 lishes that the applicant is eligible to receive such payment 

16 and which satisfies such other requirements as the Sec17 retary deems necessary. Such application shall be in such 

18 form, and shall be submitted at such time, as the Sec19 retary shall establish. 

20 (b) DEFINITIONS.—For purposes of this section: 

21 (1) QUALIFIED HYDROELECTRIC FACILITY.—

22 The term ‘‘qualified hydroelectric facility’’ means a 

23 turbine or other generating device owned or solely 

24 operated by a non-Federal entity which generates 
102

•HR 1640 IH 

1 hydroelectric energy for sale and which is added to 

2 an existing dam or conduit. 

3 (2) EXISTING DAM OR CONDUIT.—The term 

4 ‘‘existing dam or conduit’’ means any dam or con5 duit the construction of which was completed before 

6 the date of the enactment of this section and which 

7 does not require any construction or enlargement of 

8 impoundment or diversion structures (other than re9 pair or reconstruction) in connection with the instal10 lation of a turbine or other generating device. 

11 (3) CONDUIT.—The term ‘‘conduit’’ has the 

12 same meaning as when used in section 30(a)(2) of 

13 the Federal Power Act (16 U.S.C. 823a(a)(2)). 

14 The terms defined in this subsection shall apply without 

15 regard to the hydroelectric kilowatt capacity of the facility 

16 concerned, without regard to whether the facility uses a 

17 dam owned by a governmental or nongovernmental entity, 

18 and without regard to whether the facility begins oper19 ation on or after the date of the enactment of this section. 

20 (c) ELIGIBILITY WINDOW.—Payments may be made 

21 under this section only for electric energy generated from 

22 a qualified hydroelectric facility which begins operation 

23 during the period of 10 fiscal years beginning with the 

24 first full fiscal year occurring after the date of enactment 

25 of this subtitle. 
103

•HR 1640 IH 

1 (d) INCENTIVE PERIOD.—A qualified hydroelectric 

2 facility may receive payments under this section for a pe3 riod of 10 fiscal years (referred to in this section as the 

4 ‘‘incentive period’’). Such period shall begin with the fiscal 

5 year in which electric energy generated from the facility 

6 is first eligible for such payments. 

7 (e) AMOUNT OF PAYMENT.—

8 (1) IN GENERAL.—Payments made by the Sec9 retary under this section to the owner or operator of 

10 a qualified hydroelectric facility shall be based on 

11 the number of kilowatt hours of hydroelectric energy 

12 generated by the facility during the incentive period. 

13 For any such facility, the amount of such payment 

14 shall be 1.8 cents per kilowatt hour (adjusted as 

15 provided in paragraph (2)), subject to the avail16 ability of appropriations under subsection (g), except 

17 that no facility may receive more than $750,000 in 

18 1 calendar year. 

19 (2) ADJUSTMENTS.—The amount of the pay20 ment made to any person under this section as pro21 vided in paragraph (1) shall be adjusted for inflation 

22 for each fiscal year beginning after calendar year 

23 2005 in the same manner as provided in the provi24 sions of section 29(d)(2)(B) of the Internal Revenue 

25 Code of 1986, except that in applying such provi-
104

•HR 1640 IH 

1 sions the calendar year 2005 shall be substituted for 

2 calendar year 1979. 

3 (f) SUNSET.—No payment may be made under this 

4 section to any qualified hydroelectric facility after the ex5 piration of the period of 20 fiscal years beginning with 

6 the first full fiscal year occurring after the date of enact7 ment of this subtitle, and no payment may be made under 

8 this section to any such facility after a payment has been 

9 made with respect to such facility for a period of 10 fiscal 

10 years. 

11 (g) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary to carry 

13 out the purposes of this section $10,000,000 for each of 

14 the fiscal years 2006 through 2015. 

15 SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 

16 (a) INCENTIVE PAYMENTS.—The Secretary of En17 ergy shall make incentive payments to the owners or oper18 ators of hydroelectric facilities at existing dams to be used 

19 to make capital improvements in the facilities that are di20 rectly related to improving the efficiency of such facilities 

21 by at least 3 percent. 

22 (b) LIMITATIONS.—Incentive payments under this 

23 section shall not exceed 10 percent of the costs of the cap24 ital improvement concerned and not more than 1 payment 

25 may be made with respect to improvements at a single 
105

•HR 1640 IH 

1 facility. No payment in excess of $750,000 may be made 

2 with respect to improvements at a single facility. 

3 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 not more than $10,000,000 for each of the fiscal years 

6 2006 through 2015. 

7 SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS. 

8 Section 408(a)(6) of the Public Utility Regulatory 

9 Policies Act of 1978 (16 U.S.C. 2708(a)(6)) is amended 

10 by striking ‘‘April 20, 1977’’ and inserting ‘‘March 4, 

11 2003’’. 

12 SEC. 244. INCREASED HYDROELECTRIC GENERATION AT 

13 EXISTING FEDERAL FACILITIES. 

14 (a) IN GENERAL.—The Secretary of the Interior and 

15 the Secretary of Energy, in consultation with the Sec16 retary of the Army, shall jointly conduct a study of the 

17 potential for increasing electric power production capa18 bility at federally owned or operated water regulation, 

19 storage, and conveyance facilities. 

20 (b) CONTENT.—The study under this section shall in21 clude identification and description in detail of each facil22 ity that is capable, with or without modification, of pro23 ducing additional hydroelectric power, including esti24 mation of the existing potential for the facility to generate 

25 hydroelectric power. 
106

•HR 1640 IH 

1 (c) REPORT.—The Secretaries shall submit to the 

2 Committees on Energy and Commerce, Resources, and 

3 Transportation and Infrastructure of the House of Rep4 resentatives and the Committee on Energy and Natural 

5 Resources of the Senate a report on the findings, conclu6 sions, and recommendations of the study under this sec7 tion by not later than 18 months after the date of the 

8 enactment of this Act. The report shall include each of 

9 the following: 

10 (1) The identifications, descriptions, and esti11 mations referred to in subsection (b). 

12 (2) A description of activities currently con13 ducted or considered, or that could be considered, to 

14 produce additional hydroelectric power from each 

15 identified facility. 

16 (3) A summary of prior actions taken by the 

17 Secretaries to produce additional hydroelectric power 

18 from each identified facility. 

19 (4) The costs to install, upgrade, or modify 

20 equipment or take other actions to produce addi21 tional hydroelectric power from each identified facil22 ity and the level of Federal power customer involve23 ment in the determination of such costs. 

24 (5) The benefits that would be achieved by such 

25 installation, upgrade, modification, or other action, 
107

•HR 1640 IH 

1 including quantified estimates of any additional en2 ergy or capacity from each facility identified under 

3 subsection (b). 

4 (6) A description of actions that are planned, 

5 underway, or might reasonably be considered to in6 crease hydroelectric power production by replacing 

7 turbine runners, by performing generator upgrades 

8 or rewinds, or construction of pumped storage facili9 ties. 

10 (7) The impact of increased hydroelectric power 

11 production on irrigation, fish, wildlife, Indian tribes, 

12 river health, water quality, navigation, recreation, 

13 fishing, and flood control. 

14 (8) Any additional recommendations to increase 

15 hydroelectric power production from, and reduce 

16 costs and improve efficiency at, federally owned or 

17 operated water regulation, storage, and conveyance 

18 facilities. 

19 SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERI20 ODS. 

21 (a) IN GENERAL.—The Secretary of the Interior 

22 shall—

23 (1) review electric power consumption by Bu24 reau of Reclamation facilities for water pumping 

25 purposes; and 
108

•HR 1640 IH 

1 (2) make such adjustments in such pumping as 

2 possible to minimize the amount of electric power 

3 consumed for such pumping during periods of peak 

4 electric power consumption, including by performing 

5 as much of such pumping as possible during off6 peak hours at night. 

7 (b) CONSENT OF AFFECTED IRRIGATION CUSTOMERS

8 REQUIRED.—The Secretary may not under this section 

9 make any adjustment in pumping at a facility without the 

10 consent of each person that has contracted with the 

11 United States for delivery of water from the facility for 

12 use for irrigation and that would be affected by such ad13 justment. 

14 (c) EXISTING OBLIGATIONS NOT AFFECTED.—This 

15 section shall not be construed to affect any existing obliga16 tion of the Secretary to provide electric power, water, or 

17 other benefits from Bureau of Reclamation facilities, in18 cluding recreational releases. 
109

•HR 1640 IH 

1 TITLE III—OIL AND GAS 

2 Subtitle A—Petroleum Reserve and 

3 Home Heating Oil 

4 SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA5 TEGIC PETROLEUM RESERVE AND OTHER 

6 ENERGY PROGRAMS. 

7 (a) AMENDMENT TO TITLE I OF THE ENERGY POL8 ICY AND CONSERVATION ACT.—Title I of the Energy Pol9 icy and Conservation Act (42 U.S.C. 6211 et seq.) is 

10 amended—

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

12 and inserting the following: 

13 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

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

16 out this part and part D, to remain available until ex17 pended.’’; 

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

19 and 

20 (3) by striking part E (42 U.S.C. 6251; relat21 ing to the expiration of title I of the Act). 

22 (b) AMENDMENT TO TITLE II OF THE ENERGY POL23 ICY AND CONSERVATION ACT.—Title II of the Energy 

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

25 amended—
110

•HR 1640 IH 

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

2 6283) the following: 

3 ‘‘PART C—SUMMER FILL AND FUEL BUDGETING 

4 PROGRAMS’’; 

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

6 6283(e); relating to the expiration of summer fill 

7 and fuel budgeting programs); and 

8 (3) by striking part D (42 U.S.C. 6285; relat9 ing to the expiration of title II of the Act). 

10 (c) TECHNICAL AMENDMENTS.—The table of con11 tents for the Energy Policy and Conservation Act is 

12 amended—

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

14 C of title I the following:

‘‘PART D—NORTHEAST HOME HEATING OIL RESERVE

‘‘Sec. 181. Establishment. 

‘‘Sec. 182. Authority. 

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

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

‘‘Sec. 185. Exemptions.’’;

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

16 title II to read as follows:

‘‘PART C—SUMMER FILL AND FUEL BUDGETING PROGRAMS

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

17 and 

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

19 title II. 
111

•HR 1640 IH 

1 (d) AMENDMENT TO THE ENERGY POLICY AND CON2 SERVATION ACT.—Section 183(b)(1) of the Energy Policy 

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

4 by striking all after ‘‘increases’’ through to ‘‘mid-October 

5 through March’’ and inserting ‘‘by more than 60 percent 

6 over its 5-year rolling average for the months of mid-Octo7 ber through March (considered as a heating season aver8 age)’’. 

9 (e) FILL STRATEGIC PETROLEUM RESERVE TO CA10 PACITY.—The Secretary of Energy shall, as expeditiously 

11 as practicable, acquire petroleum in amounts sufficient to 

12 fill the Strategic Petroleum Reserve to the 1,000,000,000 

13 barrel capacity authorized under section 154(a) of the En14 ergy Policy and Conservation Act (42 U.S.C. 6234(a)), 

15 consistent with the provisions of sections 159 and 160 of 

16 such Act (42 U.S.C. 6239, 6240). 

17 SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE. 

18 Section 713 of the Energy Act of 2000 (42 U.S.C. 

19 6201 note) is amended by striking ‘‘4’’ and inserting ‘‘9’’. 

20 SEC. 303. SITE SELECTION. 

21 Not later than 1 year after the date of enactment 

22 of this Act, the Secretary of Energy shall complete a pro23 ceeding to select, from sites that the Secretary has pre24 viously studied, sites necessary to enable acquisition by the 
112

•HR 1640 IH 

1 Secretary of the full authorized volume of the Strategic 

2 Petroleum Reserve. 

3 SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RE4 SERVE DELIVERIES. 

5 The Secretary of Energy shall suspend deliveries of 

6 royalty-in-kind oil to the Strategic Petroleum Reserve 

7 until the price of oil falls below $40 per barrel for 2 con8 secutive weeks on the New York Mercantile Exchange. 

9 Subtitle B—Production Incentives 

10 SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS 

11 TERMINALS. 

12 (a) SCOPE OF NATURAL GAS ACT.—Section 1(b) of 

13 the Natural Gas Act (15 U.S.C. 717(b)) is amended by 

14 inserting ‘‘and to the importation or exportation of natural 

15 gas in foreign commerce and to persons engaged in such 

16 importation or exportation,’’ after ‘‘such transportation or 

17 sale,’’. 

18 (b) DEFINITION.—Section 2 of the Natural Gas Act 

19 (15 U.S.C. 717a) is amended by adding at the end the 

20 following new paragraph: 

21 ‘‘(11) ‘Liquefaction or gasification natural gas 

22 terminal’ includes all facilities located onshore or in 

23 State waters that are used to receive, unload, load, 

24 store, transport, gasify, liquefy, or process natural 

25 gas that is imported to the United States from a 
113

•HR 1640 IH 

1 foreign country, exported to a foreign country from 

2 the United States, or transported in interstate com3 merce by waterborne tanker, but does not include—

4 ‘‘(A) waterborne tankers used to deliver 

5 natural gas to or from any such facility; or 

6 ‘‘(B) any pipeline or storage facility sub7 ject to the jurisdiction of the Commission under 

8 section 7.’’. 

9 (c) AUTHORIZATION FOR CONSTRUCTION, EXPAN10 SION, OR OPERATION OF LIQUEFACTION OR GASIFI11 CATION NATURAL GAS TERMINALS.—(1) The title for sec12 tion 3 of the Natural Gas Act (15 U.S.C. 717b) is amend13 ed by inserting ‘‘; LIQUEFACTION OR GASIFICATION NAT14 URAL GAS TERMINALS’’ after ‘‘EXPORTATION OR IMPORTA15 TION OF NATURAL GAS’’. 

16 (2) Section 3 of the Natural Gas Act (15 U.S.C. 

17 717b) is amended by adding at the end the following: 

18 ‘‘(d) AUTHORIZATION FOR CONSTRUCTION, EXPAN19 SION, OR OPERATION OF LIQUEFACTION OR GASIFI20 CATION NATURAL GAS TERMINALS.—

21 ‘‘(1) COMMISSION AUTHORIZATION RE22 QUIRED.—No person shall construct, expand, or op23 erate a liquefaction or gasification natural gas ter24 minal without an order from the Commission au25 thorizing such person to do so. 
114

•HR 1640 IH 

1 ‘‘(2) AUTHORIZATION PROCEDURES.—

2 ‘‘(A) NOTICE AND HEARING.—Upon the 

3 filing of any application to construct, expand, 

4 or operate a liquefaction or gasification natural 

5 gas terminal, the Commission shall—

6 ‘‘(i) set the matter for hearing; 

7 ‘‘(ii) give reasonable notice of the 

8 hearing to all interested persons, including 

9 the State commission of the State in which 

10 the liquefaction or gasification natural gas 

11 terminal is located; 

12 ‘‘(iii) decide the matter in accordance 

13 with this subsection; and 

14 ‘‘(iv) issue or deny the appropriate 

15 order accordingly. 

16 ‘‘(B) DESIGNATION AS LEAD AGENCY.—

17 ‘‘(i) IN GENERAL.—The Commission 

18 shall act as the lead agency for the pur19 poses of coordinating all applicable Federal 

20 authorizations and for the purposes of 

21 complying with the National Environ22 mental Policy Act of 1969 (42 U.S.C. 

23 4312 et seq.) for a liquefaction or gasifi24 cation natural gas terminal. 
115

•HR 1640 IH 

1 ‘‘(ii) OTHER AGENCIES.—Each Fed2 eral agency considering an aspect of the 

3 construction, expansion, or operation of a 

4 liquefaction or gasification natural gas ter5 minal shall cooperate with the Commission 

6 and comply with the deadlines established 

7 by the Commission. 

8 ‘‘(C) SCHEDULE.—

9 ‘‘(i) COMMISSION AUTHORITY TO SET

10 SCHEDULE.—The Commission shall estab11 lish a schedule for all Federal and State 

12 administrative proceedings required under 

13 authority of Federal law to construct, ex14 pand, or operate a liquefaction or gasifi15 cation natural gas terminal. In establishing 

16 the schedule, the Commission shall—

17 ‘‘(I) ensure expeditious comple18 tion of all such proceedings; and 

19 ‘‘(II) accommodate the applicable 

20 schedules established by Federal law 

21 for such proceedings. 

22 ‘‘(ii) FAILURE TO MEET SCHEDULE.—

23 If a Federal or State administrative agency 

24 does not complete a proceeding for an ap25 proval that is required before a person may 
116

•HR 1640 IH 

1 construct, expand, or operate the lique2 faction or gasification natural gas ter3 minal, in accordance with the schedule es4 tablished by the Commission under this 

5 subparagraph, and if—

6 ‘‘(I) a determination has been 

7 made by the Court pursuant to sec8 tion 19(d) that such delay is unrea9 sonable; and 

10 ‘‘(II) the agency has failed to act 

11 on any remand by the Court within 

12 the deadline set by the Court, 

13 that approval may be conclusively pre14 sumed by the Commission. 

15 ‘‘(D) EXCLUSIVE RECORD.—The Commis16 sion shall, with the cooperation of Federal and 

17 State administrative agencies and officials, 

18 maintain a complete consolidated record of all 

19 decisions made or actions taken by the Commis20 sion or by a Federal administrative agency or 

21 officer (or State administrative agency or offi22 cer acting under delegated Federal authority) 

23 with respect to the construction, expansion, or 

24 operation of a liquefaction or gasification nat25 ural gas terminal. Such record shall be the ex-
117

•HR 1640 IH 

1 clusive record for any Federal administrative 

2 proceeding that is an appeal or review of any 

3 such decision made or action taken. 

4 ‘‘(E) STATE AND LOCAL SAFETY CONSID5 ERATIONS.—

6 ‘‘(i) IN GENERAL.—The Commission 

7 shall consult with the State commission of 

8 the State in which the liquefaction or gas9 ification natural gas terminal is located re10 garding State and local safety consider11 ations prior to issuing an order pursuant 

12 to this subsection and consistent with the 

13 schedule established under subparagraph 

14 (C). 

15 ‘‘(ii) STATE SAFETY INSPECTIONS.—

16 The State commission of the State in 

17 which a liquefaction or gasification natural 

18 gas terminal is located may, after the ter19 minal is operational, conduct safety inspec20 tions with respect to the liquefaction or 

21 gasification natural gas terminal if—

22 ‘‘(I) the State commission pro23 vides written notice to the Commis24 sion of its intention to do so; and 
118

•HR 1640 IH 

1 ‘‘(II) the inspections will be car2 ried out in conformance with Federal 

3 regulations and guidelines. 

4 Enforcement of any safety violation discov5 ered by a State commission pursuant to 

6 this clause shall be carried out by Federal 

7 officials. The Commission shall take appro8 priate action in response to a report of a 

9 violation not later that 90 days after re10 ceiving such report. 

11 ‘‘(iii) STATE AND LOCAL SAFETY CON12 SIDERATIONS.—For the purposes of this 

13 subparagraph, State and local safety con14 siderations include—

15 ‘‘(I) the kind and use of the facil16 ity; 

17 ‘‘(II) the existing and projected 

18 population and demographic charac19 teristics of the location; 

20 ‘‘(III) the existing and proposed 

21 land use near the location; 

22 ‘‘(IV) the natural and physical 

23 aspects of the location; 

24 ‘‘(V) the medical, law enforce25 ment, and fire prevention capabilities 
119

•HR 1640 IH 

1 near the location that can respond at 

2 the facility; and 

3 ‘‘(VI) the feasibility of remote 

4 siting. 

5 ‘‘(3) ISSUANCE OF COMMISSION ORDER.—

6 ‘‘(A) IN GENERAL.—The Commission shall 

7 issue an order authorizing, in whole or in part, 

8 the construction, expansion, or operation cov9 ered by the application to any qualified appli10 cant—

11 ‘‘(i) unless the Commission finds such 

12 actions or operations will not be consistent 

13 with the public interest; and 

14 ‘‘(ii) if the Commission has found that 

15 the applicant is—

16 ‘‘(I) able and willing to carry out 

17 the actions and operations proposed; 

18 and 

19 ‘‘(II) willing to conform to the 

20 provisions of this Act and any require21 ments, rules, and regulations of the 

22 Commission set forth under this Act. 

23 ‘‘(B) TERMS AND CONDITIONS.—The Com24 mission may by its order grant an application, 

25 in whole or in part, with such modification and 
120

•HR 1640 IH 

1 upon such terms and conditions as the Commis2 sion may find necessary or appropriate. 

3 ‘‘(C) LIMITATIONS ON TERMS AND CONDI4 TIONS TO COMMISSION ORDER.—

5 ‘‘(i) IN GENERAL.—Any Commission 

6 order issued pursuant to this subsection 

7 before January 1, 2011, shall not be condi8 tioned on—

9 ‘‘(I) a requirement that the lique10 faction or gasification natural gas ter11 minal offer service to persons other 

12 than the person, or any affiliate there13 of, securing the order; or 

14 ‘‘(II) any regulation of the lique15 faction or gasification natural gas ter16 minal’s rates, charges, terms, or con17 ditions of service. 

18 ‘‘(ii) INAPPLICABLE TO TERMINAL

19 EXIT PIPELINE.—Clause (i) shall not apply 

20 to any pipeline subject to the jurisdiction 

21 of the Commission under section 7 exiting 

22 a liquefaction or gasification natural gas 

23 terminal. 

24 ‘‘(iii) EXPANSION OF REGULATED

25 TERMINAL.—An order issued under this 
121

•HR 1640 IH 

1 paragraph that relates to an expansion of 

2 an existing liquefaction or gasification nat3 ural gas terminal, where any portion of the 

4 existing terminal continues to be subject to 

5 Commission regulation of rates, charges, 

6 terms, or conditions of service, may not re7 sult in—

8 ‘‘(I) subsidization of the expan9 sion by regulated terminal users; 

10 ‘‘(II) degradation of service to 

11 the regulated terminal users; or 

12 ‘‘(III) undue discrimination 

13 against the regulated terminal users. 

14 ‘‘(iv) EXPIRATION.—This subpara15 graph shall cease to have effect on Janu16 ary 1, 2021. 

17 ‘‘(4) DEFINITION.—For the purposes of this 

18 subsection, the term ‘Federal authorization’ means 

19 any authorization required under Federal law in 

20 order to construct, expand, or operate a liquefaction 

21 or gasification natural gas terminal, including such 

22 permits, special use authorizations, certifications, 

23 opinions, or other approvals as may be required, 

24 whether issued by a Federal or State agency.’’. 
122

•HR 1640 IH 

1 (d) JUDICIAL REVIEW.—Section 19 of the Natural 

2 Gas Act (15 U.S.C. 717r) is amended by adding at the 

3 end the following: 

4 ‘‘(d) JUDICIAL REVIEW.—

5 ‘‘(1) IN GENERAL.—The United States Court of 

6 Appeals for the District of Columbia Circuit shall 

7 have original and exclusive jurisdiction over any civil 

8 action—

9 ‘‘(A) for review of any order, action, or 

10 failure to act of any Federal or State adminis11 trative agency to issue, condition, or deny any 

12 permit, license, concurrence, or approval re13 quired under Federal law for the construction, 

14 expansion, or operation of a liquefaction or gas15 ification natural gas terminal; 

16 ‘‘(B) alleging unreasonable delay, in meet17 ing a schedule established under section 

18 3(d)(2)(C) or otherwise, by any Federal or 

19 State administrative agency in entering an 

20 order or taking other action described in sub21 paragraph (A); or 

22 ‘‘(C) challenging any decision made or ac23 tion taken by the Commission under section 

24 3(d). 
123

•HR 1640 IH 

1 ‘‘(2) COMMISSION ACTION.—For any action de2 scribed in this subsection, the Commission shall file 

3 with the Court the consolidated record maintained 

4 under section 3(d)(2)(D). 

5 ‘‘(3) COURT ACTION.—If the Court finds under 

6 paragraph (1)(A) or (B) that an order, action, fail7 ure to act, or delay is inconsistent with applicable 

8 Federal law, and would prevent the construction, ex9 pansion, or operation of a liquefaction or gasification 

10 natural gas terminal, the order or action shall be 

11 deemed to have been issued or taken, subject to any 

12 conditions established by the Federal or State ad13 ministrative agency upon remand from the Court, 

14 such conditions to be consistent with the order of 

15 the Court. If the Court remands the order or action 

16 to the Federal or State agency, the Court shall set 

17 a reasonable deadline for the agency to act on re18 mand. 

19 ‘‘(4) UNREASONABLE DELAY.—For the pur20 poses of paragraph (1)(B), the failure of an agency 

21 to issue a permit, license, concurrence, or approval 

22 within the later of—

23 ‘‘(A) 1 year after the date of filing of an 

24 application for the permit, license, concurrence, 

25 or approval; or 
124

•HR 1640 IH 

1 ‘‘(B) 60 days after the date of issuance of 

2 the order under section 3(d), 

3 shall be considered unreasonable delay unless the 

4 Court, for good cause shown, determines otherwise. 

5 ‘‘(5) EXPEDITED REVIEW.—The Court shall set 

6 any action brought under this subsection for expe7 dited consideration.’’. 

8 SEC. 327. HYDRAULIC FRACTURING. 

9 Paragraph (1) of section 1421(d) of the Safe Drink10 ing Water Act (42 U.S.C. 300h(d)) is amended to read 

11 as follows: 

12 ‘‘(1) UNDERGROUND INJECTION.—The term 

13 ‘underground injection’—

14 ‘‘(A) means the subsurface emplacement of 

15 fluids by well injection; and 

16 ‘‘(B) excludes—

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

19 ‘‘(ii) the underground injection of 

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

22 or gas production activities.’’. 
125

•HR 1640 IH 

1 SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUC2 TION OR OFFSHORE MINERAL DEVELOP3 MENT PROJECTS. 

4 (a) AGENCY OF RECORD, PIPELINE CONSTRUCTION

5 PROJECTS.—Any Federal administrative agency pro6 ceeding that is an appeal or review under section 319 of 

7 the Coastal Zone Management Act of 1972 (16 U.S.C. 

8 1465), as amended by this Act, related to Federal author9 ity for an interstate natural gas pipeline construction 

10 project, including construction of natural gas storage and 

11 liquefied natural gas facilities, shall use as its exclusive 

12 record for all purposes the record compiled by the Federal 

13 Energy Regulatory Commission pursuant to the Commis14 sion’s proceeding under sections 3 and 7 of the Natural 

15 Gas Act (15 U.S.C. 717b, 717f). 

16 (b) SENSE OF CONGRESS.—It is the sense of Con17 gress that all Federal and State agencies with jurisdiction 

18 over interstate natural gas pipeline construction activities 

19 should coordinate their proceedings within the timeframes 

20 established by the Federal Energy Regulatory Commission 

21 when the Commission is acting under sections 3 and 7 

22 of the Natural Gas Act (15 U.S.C. 717b, 717f) to deter23 mine whether a certificate of public convenience and neces24 sity should be issued for a proposed interstate natural gas 

25 pipeline. 
126

•HR 1640 IH 

1 (c) AGENCY OF RECORD, OFFSHORE MINERAL DE2 VELOPMENT PROJECTS.—Any Federal administrative 

3 agency proceeding that is an appeal or review under sec4 tion 319 of the Coastal Zone Management Act of 1972 

5 (16 U.S.C. 1465), as amended by this Act, related to Fed6 eral authority for the permitting, approval, or other au7 thorization of energy projects, including projects to ex8 plore, develop, or produce mineral resources in or under9 lying the outer Continental Shelf shall use as its exclusive 

10 record for all purposes (except for the filing of pleadings) 

11 the record compiled by the relevant Federal permitting 

12 agency. 

13 SEC. 333. NATURAL GAS MARKET TRANSPARENCY. 

14 The Natural Gas Act (15 U.S.C 717 et seq.) is 

15 amended—

16 (1) by redesignating section 24 as section 25; 

17 and 

18 (2) by inserting after section 23 the following: 

19 ‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY. 

20 ‘‘(a) AUTHORIZATION.—(1) Not later than 180 days 

21 after the date of enactment of the Energy Policy Act of 

22 2005, the Federal Energy Regulatory Commission shall 

23 issue rules directing all entities subject to the Commis24 sion’s jurisdiction as provided under this Act to timely re25 port information about the availability and prices of nat-
127

•HR 1640 IH 

1 ural gas sold at wholesale in interstate commerce to the 

2 Commission and price publishers. 

3 ‘‘(2) The Commission shall evaluate the data for ade4 quate price transparency and accuracy. 

5 ‘‘(3) Rules issued under this subsection requiring the 

6 reporting of information to the Commission that may be7 come publicly available shall be limited to aggregate data 

8 and transaction-specific data that are otherwise required 

9 by the Commission to be made public. 

10 ‘‘(4) In exercising its authority under this section, the 

11 Commission shall not—

12 ‘‘(A) compete with, or displace from the market 

13 place, any price publisher; or 

14 ‘‘(B) regulate price publishers or impose any re15 quirements on the publication of information. 

16 ‘‘(b) TIMELY ENFORCEMENT.—No person shall be 

17 subject to any penalty under this section with respect to 

18 a violation occurring more than 3 years before the date 

19 on which the Federal Energy Regulatory Commission 

20 seeks to assess a penalty. 

21 ‘‘(c) LIMITATION ON COMMISSION AUTHORITY.—(1) 

22 The Commission shall not condition access to interstate 

23 pipeline transportation upon the reporting requirements 

24 authorized under this section. 
128

•HR 1640 IH 

1 ‘‘(2) Natural gas sales by a producer that are attrib2 utable to volumes of natural gas produced by such pro3 ducer shall not be subject to the rules issued pursuant to 

4 this section. 

5 ‘‘(3) The Commission shall not require natural gas 

6 producers, processors, or users who have a de minimis 

7 market presence to participate in the reporting require8 ments provided in this section.’’. 

9 Subtitle C—Access to Federal Land 

10 SEC. 344. CONSULTATION REGARDING OIL AND GAS LEAS11 ING ON PUBLIC LAND. 

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

13 date of enactment of this Act, the Secretary of the Interior 

14 and the Secretary of Agriculture shall enter into a memo15 randum of understanding regarding oil and gas leasing 

16 on—

17 (1) public lands under the jurisdiction of the 

18 Secretary of the Interior; and 

19 (2) National Forest System lands under the ju20 risdiction of the Secretary of Agriculture. 

21 (b) CONTENTS.—The memorandum of understanding 

22 shall include provisions that—

23 (1) establish administrative procedures and 

24 lines of authority that ensure timely processing of oil 

25 and gas lease applications, surface use plans of oper-
129

•HR 1640 IH 

1 ation, and applications for permits to drill, including 

2 steps for processing surface use plans and applica3 tions for permits to drill consistent with the 

4 timelines established by the amendment made by 

5 section 348; 

6 (2) eliminate duplication of effort by providing 

7 for coordination of planning and environmental com8 pliance efforts; and 

9 (3) ensure that lease stipulations are—

10 (A) applied consistently; 

11 (B) coordinated between agencies; and 

12 (C) only as restrictive as necessary to pro13 tect the resource for which the stipulations are 

14 applied. 

15 (c) DATA RETRIEVAL SYSTEM.—

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

17 the date of enactment of this Act, the Secretary of 

18 the Interior and the Secretary of Agriculture shall 

19 establish a joint data retrieval system that is capable 

20 of—

21 (A) tracking applications and formal re22 quests made in accordance with procedures of 

23 the Federal onshore oil and gas leasing pro24 gram; and 
130

•HR 1640 IH 

1 (B) providing information regarding the 

2 status of the applications and requests within 

3 the Department of the Interior and the Depart4 ment of Agriculture. 

5 (2) RESOURCE MAPPING.—Not later than 2 

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

7 Secretary of the Interior and the Secretary of Agri8 culture shall establish a joint Geographic Informa9 tion System mapping system for use in—

10 (A) tracking surface resource values to aid 

11 in resource management; and 

12 (B) processing surface use plans of oper13 ation and applications for permits to drill. 

14 SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; AC15 TIONS CONCERNING REGULATIONS THAT 

16 SIGNIFICANTLY AFFECT ENERGY SUPPLY, 

17 DISTRIBUTION, OR USE. 

18 (a) REQUIREMENT.—The head of each Federal agen19 cy shall require that before the Federal agency takes any 

20 action that could have a significant adverse effect on the 

21 supply of domestic energy resources from Federal public 

22 land, the Federal agency taking the action shall comply 

23 with Executive Order No. 13211 (42 U.S.C. 13201 note). 

24 (b) GUIDANCE.—Not later than 180 days after the 

25 date of enactment of this Act, the Secretary of Energy 
131

•HR 1640 IH 

1 shall publish guidance for purposes of this section describ2 ing what constitutes a significant adverse effect on the 

3 supply of domestic energy resources under Executive 

4 Order No. 13211 (42 U.S.C. 13201 note). 

5 (c) MEMORANDUM OF UNDERSTANDING.—The Sec6 retary of the Interior and the Secretary of Agriculture 

7 shall include in the memorandum of understanding under 

8 section 344 provisions for implementing subsection (a) of 

9 this section. 

10 SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND COR11 RIDORS ON FEDERAL LAND. 

12 (a) REPORT TO CONGRESS.—

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

14 the date of enactment of this Act, the Secretary of 

15 Agriculture and the Secretary of the Interior, in con16 sultation with the Secretary of Commerce, the Sec17 retary of Defense, the Secretary of Energy, and the 

18 Federal Energy Regulatory Commission, shall sub19 mit to Congress a joint report—

20 (A) that addresses—

21 (i) the location of existing rights-of22 way and designated and de facto corridors 

23 for oil and gas pipelines and electric trans24 mission and distribution facilities on Fed25 eral land; and 
132

•HR 1640 IH 

1 (ii) opportunities for additional oil 

2 and gas pipeline and electric transmission 

3 capacity within those rights-of-way and 

4 corridors; and 

5 (B) that includes a plan for making avail6 able, on request, to the appropriate Federal, 

7 State, and local agencies, tribal governments, 

8 and other persons involved in the siting of oil 

9 and gas pipelines and electricity transmission 

10 facilities Geographic Information System-based 

11 information regarding the location of the exist12 ing rights-of-way and corridors and any planned 

13 rights-of-way and corridors. 

14 (2) CONSULTATIONS AND CONSIDERATIONS.—

15 In preparing the report, the Secretary of the Interior 

16 and the Secretary of Agriculture shall consult 

17 with—

18 (A) other agencies of Federal, State, tribal, 

19 or local units of government, as appropriate; 

20 (B) persons involved in the siting of oil 

21 and gas pipelines and electric transmission fa22 cilities; and 

23 (C) other interested members of the public. 

24 (3) LIMITATION.—The Secretary of the Interior 

25 and the Secretary of Agriculture shall limit the dis-
133

•HR 1640 IH 

1 tribution of the report and Geographic Information 

2 System-based information referred to in paragraph 

3 (1) as necessary for national and infrastructure se4 curity reasons, if either Secretary determines that 

5 the information may be withheld from public disclo6 sure under a national security or other exception 

7 under section 552(b) of title 5, United States Code. 

8 (b) CORRIDOR DESIGNATIONS.—

9 (1) 11 CONTIGUOUS WESTERN STATES.—Not 

10 later than 2 years after the date of enactment of 

11 this Act, the Secretary of Agriculture, the Secretary 

12 of Commerce, the Secretary of Defense, the Sec13 retary of Energy, and the Secretary of the Interior, 

14 in consultation with the Federal Energy Regulatory 

15 Commission and the affected utility industries, shall 

16 jointly—

17 (A) designate, under title V of the Federal 

18 Land Policy and Management Act of 1976 (43 

19 U.S.C. 1761 et seq.) and other applicable Fed20 eral laws, corridors for oil and gas pipelines and 

21 electricity transmission and facilities on Federal 

22 land in the eleven contiguous Western States 

23 (as defined in section 103 of the Federal Land 

24 Policy and Management Act of 1976 (43 U.S.C. 

25 1702)); 
134

•HR 1640 IH 

1 (B) perform any environmental reviews 

2 that may be required to complete the designa3 tions of corridors for the facilities on Federal 

4 land in the eleven contiguous Western States; 

5 and 

6 (C) incorporate the designated corridors 

7 into—

8 (i) the relevant departmental and 

9 agency land use and resource management 

10 plans; or 

11 (ii) equivalent plans. 

12 (2) OTHER STATES.—Not later than 4 years 

13 after the date of enactment of this Act, the Sec14 retary of Agriculture, the Secretary of Commerce, 

15 the Secretary of Defense, the Secretary of Energy, 

16 and the Secretary of the Interior, in consultation 

17 with the Federal Energy Regulatory Commission 

18 and the affected utility industries, shall jointly—

19 (A) identify corridors for oil and gas pipe20 lines and electricity transmission and distribu21 tion facilities on Federal land in the States 

22 other than those described in paragraph (1); 

23 and 
135

•HR 1640 IH 

1 (B) schedule prompt action to identify, 

2 designate, and incorporate the corridors into 

3 the land use plan. 

4 (3) ONGOING RESPONSIBILITIES.—The Sec5 retary of Agriculture, the Secretary of Commerce, 

6 the Secretary of Defense, the Secretary of Energy, 

7 and the Secretary of the Interior, with respect to 

8 lands under their respective jurisdictions, in con9 sultation with the Federal Energy Regulatory Com10 mission and the affected utility industries, shall es11 tablish procedures that—

12 (A) ensure that additional corridors for oil 

13 and gas pipelines and electricity transmission 

14 and distribution facilities on Federal land are 

15 promptly identified and designated; and 

16 (B) expedite applications to construct or 

17 modify oil and gas pipelines and electricity 

18 transmission and distribution facilities within 

19 the corridors, taking into account prior analyses 

20 and environmental reviews undertaken during 

21 the designation of corridors. 

22 (c) CONSIDERATIONS.—In carrying out this section, 

23 the Secretaries shall take into account the need for up24 graded and new electricity transmission and distribution 

25 facilities to—
136

•HR 1640 IH 

1 (1) improve reliability; 

2 (2) relieve congestion; and 

3 (3) enhance the capability of the national grid 

4 to deliver electricity. 

5 (d) DEFINITION OF CORRIDOR.—

6 (1) IN GENERAL.—In this section and title V of 

7 the Federal Land Policy and Management Act of 

8 1976 (43 U.S.C. 1761 et seq.), the term ‘‘corridor’’ 

9 means—

10 (A) a linear strip of land—

11 (i) with a width determined with con12 sideration given to technological, environ13 mental, and topographical factors; and 

14 (ii) that contains, or may in the fu15 ture contain, 1 or more utility, communica16 tion, or transportation facilities; 

17 (B) a land use designation that is estab18 lished—

19 (i) by law; 

20 (ii) by Secretarial Order; 

21 (iii) through the land use planning 

22 process; or 

23 (iv) by other management decision; 

24 and 
137

•HR 1640 IH 

1 (C) a designation made for the purpose of 

2 establishing the preferred location of compatible 

3 linear facilities and land uses. 

4 (2) SPECIFICATIONS OF CORRIDOR.—On des5 ignation of a corridor under this section, the center6 line, width, and compatible uses of a corridor shall 

7 be specified. 

8 SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS 

9 DRILLING BAN. 

10 Congress encourages no Federal or State permit or 

11 lease to be issued for new oil and gas slant, directional, 

12 or offshore drilling in or under one or more of the Great 

13 Lakes. 

14 SEC. 358. FEDERAL COALBED METHANE REGULATION. 

15 Any State currently on the list of Affected States es16 tablished under section 1339(b) of the Energy Policy Act 

17 of 1992 (42 U.S.C. 13368(b)) shall be removed from the 

18 list if, not later than 3 years after the date of enactment 

19 of this Act, the State takes, or prior to the date of enact20 ment has taken, any of the actions required for removal 

21 from the list under such section 1339(b). 

22 Subtitle D—Refining Revitalization 

23 SEC. 371. SHORT TITLE. 

24 This subtitle may be cited as the ‘‘United States Re25 finery Revitalization Act of 2005’’. 
138

•HR 1640 IH 

1 SEC. 372. FINDINGS. 

2 Congress finds the following: 

3 (1) It serves the national interest to increase 

4 petroleum refining capacity for gasoline, heating oil, 

5 diesel fuel, jet fuel, kerosene, and petrochemical 

6 feedstocks wherever located within the United 

7 States, to bring more supply to the markets for use 

8 by the American people. Nearly 50 percent of the 

9 petroleum in the United States is used for the pro10 duction of gasoline. Refined petroleum products have 

11 a significant impact on interstate commerce. 

12 (2) United States demand for refined petroleum 

13 products currently exceeds the country’s petroleum 

14 refining capacity to produce such products. By 

15 2025, United States gasoline consumption is pro16 jected to rise from 8,900,000 barrels per day to 

17 12,900,000 barrels per day. Diesel fuel and home 

18 heating oil are becoming larger components of an in19 creasing demand for refined petroleum supply. With 

20 the increase in air travel, jet fuel consumption is 

21 projected to be 789,000 barrels per day higher in 

22 2025 than today. 

23 (3) The petroleum refining industry is oper24 ating at 95 percent of capacity. The United States 

25 is currently importing 5 percent of its refined petro26 leum products and because of the stringent United 
139

•HR 1640 IH 

1 States gasoline and diesel fuel specifications, few 

2 foreign refiners can produce the clean fuels required 

3 in the United States and the number of foreign sup4 pliers that can produce United States quality gaso5 line is decreasing. 

6 (4) Refiners are subject to significant environ7 mental and other regulations and face several new 

8 Clean Air Act requirements over the next decade. 

9 New Clean Air Act requirements will benefit the en10 vironment but will also require substantial capital 

11 investment and additional government permits. 

12 (5) No new refinery has been built in the 

13 United States since 1976 and many smaller domes14 tic refineries have become idle since the removal of 

15 the Domestic Crude Oil Allocation Program and be16 cause of regulatory uncertainty and generally low re17 turns on capital employed. Today, the United States 

18 has 149 refineries, down from 324 in 1981. Restora19 tion of recently idled refineries alone would amount 

20 to 483,570 barrels a day in additional capacity, or 

21 approximately 3.3 percent of the total operating ca22 pacity. 

23 (6) Refiners have met growing demand by in24 creasing the use of existing equipment and increas25 ing the efficiency and capacity of existing plants. 
140

•HR 1640 IH 

1 But refining capacity has begun to lag behind peak 

2 summer demand. 

3 (7) Heavy industry and manufacturing jobs 

4 have closed or relocated due to barriers to invest5 ment, burdensome regulation, and high costs of op6 eration, among other reasons. 

7 (8) Because the production and disruption in 

8 supply of refined petroleum products has a signifi9 cant impact on interstate commerce, it serves the 

10 national interest to increase the domestic refining 

11 operating capacity. 

12 (9) More regulatory certainty for refinery own13 ers is needed to stimulate investment in increased 

14 refinery capacity and required procedures for Fed15 eral, State, and local regulatory approvals need to be 

16 streamlined to ensure that increased refinery capac17 ity can be developed and operated in a safe, timely, 

18 and cost-effective manner. 

19 (10) The proposed Yuma Arizona Refinery, a 

20 grassroots refinery facility, which only recently re21 ceived its Federal air quality permit after 5 years 

22 under the current regulatory process, and is just 

23 now beginning its environmental impact statement 

24 and local permitting process, serves as an example 
141

•HR 1640 IH 

1 of the obstacles a refiner would have to overcome to 

2 reopen an idle refinery. 

3 SEC. 373. PURPOSE. 

4 The purpose of this subtitle is to encourage the ex5 pansion of the United States refining capacity by pro6 viding an accelerated review and approval process of all 

7 regulatory approvals for certain idle refineries and lending 

8 corresponding legal and technical assistance to States with 

9 resources that may be inadequate to meet such permit re10 view demands. 

11 SEC. 374. DESIGNATION OF REFINERY REVITALIZATION 

12 ZONES. 

13 Not later than 90 days after the date of enactment 

14 of this Act, the Secretary shall designate as a Refinery 

15 Revitalization Zone any area—

16 (1) that—

17 (A) has experienced mass layoffs at manu18 facturing facilities, as determined by the Sec19 retary of Labor; or 

20 (B) contains an idle refinery; and 

21 (2) that has an unemployment rate that exceeds 

22 the national average by at least 10 percent of the 

23 national average, as set by the Department of 

24 Labor, Bureau of Labor Statistics, at the time of 

25 the designation as a Refinery Revitalization Zone. 
142

•HR 1640 IH 

1 SEC. 375. MEMORANDUM OF UNDERSTANDING. 

2 (a) IN GENERAL.—Not later than 90 days after the 

3 date of enactment of this Act, the Secretary shall enter 

4 into a memorandum of understanding with the Adminis5 trator for the purposes of this subtitle. The Secretary and 

6 the Administrator shall each designate a senior official re7 sponsible for, and dedicate sufficient other staff and re8 sources to ensure, full implementation of the purposes of 

9 this subtitle and any regulations enacted pursuant to this 

10 subtitle. 

11 (b) ADDITIONAL SIGNATORIES.—The Governor of 

12 any State, and the appropriate representative of any In13 dian Tribe, with jurisdiction over a Refinery Revitalization 

14 Zone, as designated by the Secretary pursuant to section 

15 374, may be signatories to the memorandum of under16 standing under this section. 

17 SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSIST18 ANCE. 

19 Not later than 30 days after a Revitalization Pro20 gram Qualifying State becomes a signatory to the memo21 randum of understanding under section 375(b)—

22 (1) the Secretary shall designate one or more 

23 employees of the Department with expertise relating 

24 to the siting and operation of refineries to provide 

25 legal and technical assistance to that Revitalization 

26 Program Qualifying State; and 
143

•HR 1640 IH 

1 (2) the Administrator shall designate, to pro2 vide legal and technical assistance for that Revital3 ization Program Qualifying State, one or more em4 ployees of the Environmental Protection Agency 

5 with expertise on regulatory issues, relating to the 

6 siting and operation of refineries, with respect to 

7 each of—

8 (A) the Clean Air Act (42 U.S.C. 7401 et 

9 seq.); 

10 (B) the Federal Water Pollution Control 

11 Act (33 U.S.C. 1251 et seq.); 

12 (C) the Safe Drinking Water Act (42 

13 U.S.C. 300f et seq.); 

14 (D) the Comprehensive Environmental Re15 sponse, Compensation, and Liability Act of 

16 1980 (42 U.S.C. 9601 et seq.); 

17 (E) the Solid Waste Disposal Act (42 

18 U.S.C. 6901 et seq.); 

19 (F) the Toxic Substances Control Act (15 

20 U.S.C. 2601 et seq.); 

21 (G) the National Historic Preservation Act 

22 (16 U.S.C. 470 et seq.); and 

23 (H) the National Environmental Policy Act 

24 of 1969 (42 U.S.C. 4321 et seq.). 
144

•HR 1640 IH 

1 SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF 

2 PERMITTING PROCESS. 

3 (a) DEPARTMENT OF ENERGY AS LEAD AGENCY.—

4 Upon written request of a prospective applicant for Fed5 eral authorization for a refinery facility in a Refinery Revi6 talization Zone, the Department shall act as the lead Fed7 eral agency for the purposes of coordinating all applicable 

8 Federal authorizations and environmental reviews of the 

9 refining facility. To the maximum extent practicable under 

10 applicable Federal law, the Secretary shall coordinate this 

11 Federal authorization and review process with any Indian 

12 Tribes and State and local agencies responsible for con13 ducting any separate permitting and environmental re14 views of the refining facility. 

15 (b) SCHEDULE.—

16 (1) IN GENERAL.—The Secretary, in coordina17 tion with the agencies with authority over Federal 

18 authorizations and, as appropriate, with Indian 

19 Tribes and State and local agencies that are willing 

20 to coordinate their separate permitting and environ21 mental reviews with the Federal authorizations and 

22 environmental reviews, shall establish a schedule 

23 with prompt and binding intermediate and ultimate 

24 deadlines for the review of, and Federal authoriza25 tion decisions relating to, refinery facility siting and 

26 operation. 
145

•HR 1640 IH 

1 (2) PREAPPLICATION PROCESS.—Prior to estab2 lishing the schedule, the Secretary shall provide an 

3 expeditious preapplication mechanism for applicants 

4 to confer with the agencies involved and to have 

5 each agency communicate to the prospective appli6 cant within 60 days concerning—

7 (A) the likelihood of approval for a poten8 tial refinery facility; and 

9 (B) key issues of concern to the agencies 

10 and local community. 

11 (3) SCHEDULE.—The Secretary shall consider 

12 the preapplication findings under paragraph (2) in 

13 setting the schedule and shall ensure that once an 

14 application has been submitted with such informa15 tion as the Secretary considers necessary, all permit 

16 decisions and related environmental reviews under 

17 all applicable Federal laws shall be completed within 

18 6 months or, where circumstances require otherwise, 

19 as soon as thereafter practicable. 

20 (c) CONSOLIDATED ENVIRONMENTAL REVIEW.—

21 (1) LEAD AGENCY.—In carrying out its role as 

22 the lead Federal agency for environmental review, 

23 the Department shall coordinate all applicable Fed24 eral actions for complying with the National Envi25 ronmental Policy Act of 1969 (42 U.S.C. 4321 et 
146

•HR 1640 IH 

1 seq.) and shall be responsible for preparing any envi2 ronmental impact statement required by section 

3 102(2)(C) of that Act (42 U.S.C. 4332(2)(C)) or 

4 such other form of environmental review as is re5 quired. 

6 (2) CONSOLIDATION OF STATEMENTS.—In car7 rying out paragraph (1), if the Department deter8 mines an environmental impact statement is re9 quired, the Department shall prepare a single envi10 ronmental impact statement, which shall consolidate 

11 the environmental reviews of all Federal agencies 

12 considering any aspect of the project covered by the 

13 environmental impact statement. 

14 (d) OTHER AGENCIES.—Each Federal agency consid15 ering an aspect of the siting or operation of a refinery 

16 facility in a Refinery Revitalization Zone shall cooperate 

17 with the Department and comply with the deadlines estab18 lished by the Department in the preparation of any envi19 ronmental impact statement or such other form of review 

20 as is required. 

21 (e) EXCLUSIVE RECORD.—The Department shall, 

22 with the cooperation of Federal and State administrative 

23 agencies and officials, maintain a complete consolidated 

24 record of all decisions made or actions taken by the De25 partment or by a Federal administrative agency or officer 
147

•HR 1640 IH 

1 (or State administrative agency or officer acting under 

2 delegated Federal authority) with respect to the siting or 

3 operation of a refinery facility in a Refinery Revitalization 

4 Zone. Such record shall be the exclusive record for any 

5 Federal administrative proceeding that is an appeal or re6 view of any such decision made or action taken. 

7 (f) APPEALS.—In the event any agency has denied 

8 a Federal authorization required for a refinery facility in 

9 a Refinery Revitalization Zone, or has failed to act by a 

10 deadline established by the Secretary pursuant to sub11 section (b) for deciding whether to issue the Federal au12 thorization, the applicant or any State in which the refin13 ery facility would be located may file an appeal with the 

14 Secretary. Based on the record maintained under sub15 section (e), and in consultation with the affected agency, 

16 the Secretary may then either issue the necessary Federal 

17 authorization with appropriate conditions, or deny the ap18 peal. The Secretary shall issue a decision within 60 days 

19 after the filing of the appeal. In making a decision under 

20 this subsection, the Secretary shall comply with applicable 

21 requirements of Federal law, including each of the laws 

22 referred to in section 376(2)(A) through (H). Any judicial 

23 appeal of the Secretary’s decision shall be to the United 

24 States Court of Appeals for the District of Columbia. 
148

•HR 1640 IH 

1 (g) CONFORMING REGULATIONS.—Not later than 6 

2 months after the date of enactment of this Act, the Sec3 retary shall issue any regulations necessary to implement 

4 this subtitle. 

5 SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGU6 LATIONS REQUIRED. 

7 Nothing in this subtitle shall be construed to waive 

8 the applicability of environmental laws and regulations to 

9 any refinery facility. 

10 SEC. 379. DEFINITIONS. 

11 For the purposes of this subtitle, the term—

12 (1) ‘‘Administrator’’ means the Administrator 

13 of the Environmental Protection Agency; 

14 (2) ‘‘Department’’ means the Department of 

15 Energy; 

16 (3) ‘‘Federal authorization’’ means any author17 ization required under Federal law (including the 

18 Clean Air Act, the Federal Water Pollution Control 

19 Act, the Safe Drinking Water Act, the Comprehen20 sive Environmental Response, Compensation, and 

21 Liability Act of 1980, the Solid Waste Disposal Act, 

22 the Toxic Substances Control Act, the National His23 toric Preservation Act, and the National Environ24 mental Policy Act of 1969) in order to site, con25 struct, upgrade, or operate a refinery facility within 
149

•HR 1640 IH 

1 a Refinery Revitalization Zone, including such per2 mits, special use authorizations, certifications, opin3 ions, or other approvals as may be required, whether 

4 issued by a Federal, State, or local agency; 

5 (4) ‘‘idle refinery’’ means any real property site 

6 that has been used at any time for a refinery facility 

7 since December 31, 1979, that has not been in oper8 ation after April 1, 2005; 

9 (5) ‘‘refinery facility’’ means any facility de10 signed and operated to receive, unload, store, proc11 ess and refine raw crude oil by any chemical or 

12 physical process, including distillation, fluid catalytic 

13 cracking, hydrocracking, coking, alkylation, 

14 etherification, polymerization, catalytic reforming, 

15 isomerization, hydrotreating, blending, and any com16 bination thereof; 

17 (6) ‘‘Revitalization Program Qualifying State’’ 

18 means a State or Indian Tribe that—

19 (A) has entered into the memorandum of 

20 understanding pursuant to section 375(b); and 

21 (B) has established a refining infrastruc22 ture coordination office that the Secretary finds 

23 will facilitate Federal-State cooperation for the 

24 purposes of this subtitle; and 

25 (7) ‘‘Secretary’’ means the Secretary of Energy. 
150

•HR 1640 IH 

1 TITLE IV—COAL 

2 Subtitle A—Clean Coal Power 

3 Initiative 

4 SEC. 401. AUTHORIZATION OF APPROPRIATIONS. 

5 (a) CLEAN COAL POWER INITIATIVE.—There are au6 thorized to be appropriated to the Secretary of Energy (re7 ferred to in this title as the ‘‘Secretary’’) to carry out the 

8 activities authorized by this subtitle $200,000,000 for 

9 each of fiscal years 2006 through 2014, to remain avail10 able until expended. 

11 (b) REPORT.—The Secretary shall submit to Con12 gress the report required by this subsection not later than 

13 March 31, 2007. The report shall include, with respect 

14 to subsection (a), a 10-year plan containing—

15 (1) a detailed assessment of whether the aggre16 gate funding levels provided under subsection (a) are 

17 the appropriate funding levels for that program; 

18 (2) a detailed description of how proposals will 

19 be solicited and evaluated, including a list of all ac20 tivities expected to be undertaken; 

21 (3) a detailed list of technical milestones for 

22 each coal and related technology that will be pur23 sued; and 

24 (4) a detailed description of how the program 

25 will avoid problems enumerated in General Account-
151

•HR 1640 IH 

1 ing Office reports on the Clean Coal Technology 

2 Program, including problems that have resulted in 

3 unspent funds and projects that failed either finan4 cially or scientifically. 

5 SEC. 402. PROJECT CRITERIA. 

6 (a) IN GENERAL.—The Secretary shall not provide 

7 funding under this subtitle for any project that does not 

8 advance efficiency, environmental performance, and cost 

9 competitiveness well beyond the level of technologies that 

10 are in commercial service or have been demonstrated on 

11 a scale that the Secretary determines is sufficient to dem12 onstrate that commercial service is viable as of the date 

13 of enactment of this Act. 

14 (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER

15 INITIATIVE.—

16 (1) GASIFICATION PROJECTS.—

17 (A) IN GENERAL.—In allocating the funds 

18 made available under section 401(a), the Sec19 retary shall ensure that at least 60 percent of 

20 the funds are used only for projects on coal21 based gasification technologies, including gasifi22 cation combined cycle, gasification fuel cells, 

23 gasification coproduction, and hybrid gasifi24 cation/combustion. 
152

•HR 1640 IH 

1 (B) TECHNICAL MILESTONES.—The Sec2 retary shall periodically set technical milestones 

3 specifying the emission and thermal efficiency 

4 levels that coal gasification projects under this 

5 subtitle shall be designed, and reasonably ex6 pected, to achieve. The technical milestones 

7 shall become more restrictive during the life of 

8 the program. The Secretary shall set the peri9 odic milestones so as to achieve by 2020 coal 

10 gasification projects able—

11 (i) to remove 99 percent of sulfur di12 oxide; 

13 (ii) to emit not more than .05 lbs of 

14 NOx per million Btu; 

15 (iii) to achieve substantial reductions 

16 in mercury emissions; and 

17 (iv) to achieve a thermal efficiency 

18 of—

19 (I) 60 percent for coal of more 

20 than 9,000 Btu; 

21 (II) 59 percent for coal of 7,000 

22 to 9,000 Btu; and 

23 (III) 50 percent for coal of less 

24 than 7,000 Btu. 
153

•HR 1640 IH 

1 (2) OTHER PROJECTS.—The Secretary shall pe2 riodically set technical milestones and ensure that up 

3 to 40 percent of the funds appropriated pursuant to 

4 section 401(a) are used for projects not described in 

5 paragraph (1). The milestones shall specify the 

6 emission and thermal efficiency levels that projects 

7 funded under this paragraph shall be designed to 

8 and reasonably expected to achieve. The technical 

9 milestones shall become more restrictive during the 

10 life of the program. The Secretary shall set the peri11 odic milestones so as to achieve by 2010 projects 

12 able—

13 (A) to remove 97 percent of sulfur dioxide; 

14 (B) to emit no more than .08 lbs of NOx

15 per million Btu; 

16 (C) to achieve substantial reductions in 

17 mercury emissions; and 

18 (D) to achieve a thermal efficiency of—

19 (i) 45 percent for coal of more than 

20 9,000 Btu; 

21 (ii) 44 percent for coal of 7,000 to 

22 9,000 Btu; and 

23 (iii) 40 percent for coal of less than 

24 7,000 Btu. 
154

•HR 1640 IH 

1 (3) CONSULTATION.—Before setting the tech2 nical milestones under paragraphs (1)(B) and (2), 

3 the Secretary shall consult with the Administrator of 

4 the Environmental Protection Agency and interested 

5 entities, including coal producers, industries using 

6 coal, organizations to promote coal or advanced coal 

7 technologies, environmental organizations, and orga8 nizations representing workers. 

9 (4) EXISTING UNITS.—In the case of projects 

10 at units in existence on the date of enactment of this 

11 Act, in lieu of the thermal efficiency requirements 

12 set forth in paragraphs (1)(B)(iv) and (2)(D), the 

13 milestones shall be designed to achieve an overall 

14 thermal design efficiency improvement, compared to 

15 the efficiency of the unit as operated, of not less 

16 than—

17 (A) 7 percent for coal of more than 9,000 

18 Btu; 

19 (B) 6 percent for coal of 7,000 to 9,000 

20 Btu; or 

21 (C) 4 percent for coal of less than 7,000 

22 Btu. 

23 (5) PERMITTED USES.—In carrying out this 

24 subtitle, the Secretary may fund projects that in25 clude, as part of the project, the separation and cap-
155

•HR 1640 IH 

1 ture of carbon dioxide. The thermal efficiency goals 

2 of paragraphs (1), (2), and (4) shall not apply for 

3 projects that separate and capture at least 50 per4 cent of the facility’s potential emissions of carbon di5 oxide. 

6 (c) FINANCIAL CRITERIA.—The Secretary shall not 

7 provide a funding award under this subtitle unless the re8 cipient documents to the satisfaction of the Secretary 

9 that—

10 (1) the award recipient is financially viable 

11 without the receipt of additional Federal funding; 

12 (2) the recipient will provide sufficient informa13 tion to the Secretary to enable the Secretary to en14 sure that the award funds are spent efficiently and 

15 effectively; and 

16 (3) a market exists for the technology being 

17 demonstrated or applied, as evidenced by statements 

18 of interest in writing from potential purchasers of 

19 the technology. 

20 (d) FINANCIAL ASSISTANCE.—The Secretary shall 

21 provide financial assistance to projects that meet the re22 quirements of subsections (a), (b), and (c) and are likely 

23 to—

24 (1) achieve overall cost reductions in the utiliza25 tion of coal to generate useful forms of energy; 
156

•HR 1640 IH 

1 (2) improve the competitiveness of coal among 

2 various forms of energy in order to maintain a diver3 sity of fuel choices in the United States to meet elec4 tricity generation requirements; and 

5 (3) demonstrate methods and equipment that 

6 are applicable to 25 percent of the electricity gener7 ating facilities, using various types of coal, that use 

8 coal as the primary feedstock as of the date of en9 actment of this Act. 

10 (e) FEDERAL SHARE.—The Federal share of the cost 

11 of a coal or related technology project funded by the Sec12 retary under this subtitle shall not exceed 50 percent. 

13 (f) APPLICABILITY.—No technology, or level of emis14 sion reduction, shall be treated as adequately dem15 onstrated for purposes of section 111 of the Clean Air Act 

16 (42 U.S.C. 7411), achievable for purposes of section 169 

17 of that Act (42 U.S.C. 7479), or achievable in practice 

18 for purposes of section 171 of that Act (42 U.S.C. 7501) 

19 solely by reason of the use of such technology, or the 

20 achievement of such emission reduction, by 1 or more fa21 cilities receiving assistance under this subtitle. 

22 SEC. 403. REPORT. 

23 Not later than 1 year after the date of enactment 

24 of this Act, and once every 2 years thereafter through 

25 2014, the Secretary, in consultation with other appro-
157

•HR 1640 IH 

1 priate Federal agencies, shall submit to Congress a report 

2 describing—

3 (1) the technical milestones set forth in section 

4 402 and how those milestones ensure progress to5 ward meeting the requirements of subsections 

6 (b)(1)(B) and (b)(2) of section 402; and 

7 (2) the status of projects funded under this 

8 subtitle. 

9 SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE. 

10 As part of the program authorized in section 401, 

11 the Secretary shall award competitive, merit-based grants 

12 to universities for the establishment of Centers of Excel13 lence for Energy Systems of the Future. The Secretary 

14 shall provide grants to universities that show the greatest 

15 potential for advancing new clean coal technologies. 

16 Subtitle B—Clean Power Projects 

17 SEC. 411. COAL TECHNOLOGY LOAN. 

18 There are authorized to be appropriated to the Sec19 retary $125,000,000 to provide a loan to the owner of the 

20 experimental plant constructed under United States De21 partment of Energy cooperative agreement number DE–

22 FC–22–91PC90544 on such terms and conditions as the 

23 Secretary determines, including interest rates and upfront 

24 payments. 
158

•HR 1640 IH 

1 SEC. 412. COAL GASIFICATION. 

2 The Secretary is authorized to provide loan guaran3 tees for a project to produce energy from a plant using 

4 integrated gasification combined cycle technology of at 

5 least 400 megawatts in capacity that produces power at 

6 competitive rates in deregulated energy generation mar7 kets and that does not receive any subsidy (direct or indi8 rect) from ratepayers. 

9 SEC. 414. PETROLEUM COKE GASIFICATION. 

10 The Secretary is authorized to provide loan guaran11 tees for at least 5 petroleum coke gasification projects. 

12 SEC. 416. ELECTRON SCRUBBING DEMONSTRATION. 

13 The Secretary shall use $5,000,000 from amounts 

14 appropriated to initiate, through the Chicago Operations 

15 Office, a project to demonstrate the viability of high-en16 ergy electron scrubbing technology on commercial-scale 

17 electrical generation using high-sulfur coal. 

18 Subtitle D—Coal and Related 

19 Programs 

20 SEC. 441. CLEAN AIR COAL PROGRAM. 

21 (a) AMENDMENT.—The Energy Policy Act of 1992 

22 is amended by adding the following new title at the end 

23 thereof: 
159

•HR 1640 IH 

1 ‘‘TITLE XXXI—CLEAN AIR COAL 

2 PROGRAM 

3 ‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. 

4 ‘‘(a) FINDINGS.—The Congress finds that—

5 ‘‘(1) new environmental regulations present ad6 ditional challenges for coal-fired electrical generation 

7 in the private marketplace; and 

8 ‘‘(2) the Department of Energy, in cooperation 

9 with industry, has already fully developed and com10 mercialized several new clean-coal technologies that 

11 will allow the clean use of coal. 

12 ‘‘(b) PURPOSES.—The purposes of this title are to—

13 ‘‘(1) promote national energy policy and energy 

14 security, diversity, and economic competitiveness 

15 benefits that result from the increased use of coal; 

16 ‘‘(2) mitigate financial risks, reduce the cost, 

17 and increase the marketplace acceptance of the new 

18 clean coal technologies; and 

19 ‘‘(3) advance the deployment of pollution con20 trol equipment to meet the current and future obli21 gations of coal-fired generation units regulated 

22 under the Clean Air Act (42 U.S.C. 7402 and fol23 lowing). 
160

•HR 1640 IH 

1 ‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. 

2 ‘‘The Secretary shall carry out a program to facilitate 

3 production and generation of coal-based power and the in4 stallation of pollution control equipment. 

5 ‘‘SEC. 3103. AUTHORIZATION OF APPROPRIATIONS. 

6 ‘‘(a) POLLUTION CONTROL PROJECTS.—There are 

7 authorized to be appropriated to the Secretary 

8 $300,000,000 for fiscal year 2006, $100,000,000 for fis9 cal year 2007, $40,000,000 for fiscal year 2008, 

10 $30,000,000 for fiscal year 2009, and $30,000,000 for fis11 cal year 2010, to remain available until expended, for car12 rying out the program for pollution control projects, which 

13 may include—

14 ‘‘(1) pollution control equipment and processes 

15 for the control of mercury air emissions; 

16 ‘‘(2) pollution control equipment and processes 

17 for the control of nitrogen dioxide air emissions or 

18 sulfur dioxide emissions; 

19 ‘‘(3) pollution control equipment and processes 

20 for the mitigation or collection of more than one pol21 lutant; 

22 ‘‘(4) advanced combustion technology for the 

23 control of at least two pollutants, including mercury, 

24 particulate matter, nitrogen oxides, and sulfur diox25 ide, which may also be designed to improve the en26 ergy efficiency of the unit; and 
161

•HR 1640 IH 

1 ‘‘(5) advanced pollution control equipment and 

2 processes designed to allow use of the waste byprod3 ucts or other byproducts of the equipment or an 

4 electrical generation unit designed to allow the use 

5 of byproducts. 

6 Funds appropriated under this subsection which are not 

7 awarded before fiscal year 2012 may be applied to projects 

8 under subsection (b), in addition to amounts authorized 

9 under subsection (b). 

10 ‘‘(b) GENERATION PROJECTS.—There are authorized 

11 to be appropriated to the Secretary $250,000,000 for fis12 cal year 2007, $350,000,000 for fiscal year 2008, 

13 $400,000,000 for fiscal year 2009, $400,000,000 for fis14 cal year 2010, $400,000,000 for fiscal year 2011, 

15 $400,000,000 for fiscal year 2012, and $300,000,000 for 

16 fiscal year 2013, to remain available until expended, for 

17 generation projects and air pollution control projects. 

18 Such projects may include—

19 ‘‘(1) coal-based electrical generation equipment 

20 and processes, including gasification combined cycle 

21 or other coal-based generation equipment and proc22 esses; 

23 ‘‘(2) associated environmental control equip24 ment, that will be cost-effective and that is designed 

25 to meet anticipated regulatory requirements; 
162

•HR 1640 IH 

1 ‘‘(3) coal-based electrical generation equipment 

2 and processes, including gasification fuel cells, gas3 ification coproduction, and hybrid gasification/com4 bustion projects; and 

5 ‘‘(4) advanced coal-based electrical generation 

6 equipment and processes, including oxidation com7 bustion techniques, ultra-supercritical boilers, and 

8 chemical looping, which the Secretary determines 

9 will be cost-effective and could substantially con10 tribute to meeting anticipated environmental or en11 ergy needs. 

12 ‘‘(c) LIMITATION.—Funds placed at risk during any 

13 fiscal year for Federal loans or loan guarantees pursuant 

14 to this title may not exceed 30 percent of the total funds 

15 obligated under this title. 

16 ‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA. 

17 ‘‘The Secretary shall pursuant to authorizations con18 tained in section 3103 provide funding for air pollution 

19 control projects designed to facilitate compliance with 

20 Federal and State environmental regulations, including 

21 any regulation that may be established with respect to 

22 mercury. 

23 ‘‘SEC. 3105. CRITERIA FOR GENERATION PROJECTS. 

24 ‘‘(a) CRITERIA.—The Secretary shall establish cri25 teria on which selection of individual projects described in 
163

•HR 1640 IH 

1 section 3103(b) should be based. The Secretary may mod2 ify the criteria as appropriate to reflect improvements in 

3 equipment, except that the criteria shall not be modified 

4 to be less stringent. These selection criteria shall include—

5 ‘‘(1) prioritization of projects whose installation 

6 is likely to result in significant air quality improve7 ments in nonattainment air quality areas; 

8 ‘‘(2) prioritization of projects that result in the 

9 repowering or replacement of older, less efficient 

10 units; 

11 ‘‘(3) documented broad interest in the procure12 ment of the equipment and utilization of the proc13 esses used in the projects by electrical generator 

14 owners or operators; 

15 ‘‘(4) equipment and processes beginning in 

16 2006 through 2011 that are projected to achieve an 

17 thermal efficiency of—

18 ‘‘(A) 40 percent for coal of more than 

19 9,000 Btu per pound based on higher heating 

20 values; 

21 ‘‘(B) 38 percent for coal of 7,000 to 9,000 

22 Btu per pound based on higher heating values; 

23 and 

24 ‘‘(C) 36 percent for coal of less than 7,000 

25 Btu per pound based on higher heating values, 
164

•HR 1640 IH 

1 except that energy used for coproduction or cogen2 eration shall not be counted in calculating the ther3 mal efficiency under this paragraph; and 

4 ‘‘(5) equipment and processes beginning in 

5 2012 and 2013 that are projected to achieve an 

6 thermal efficiency of—

7 ‘‘(A) 45 percent for coal of more than 

8 9,000 Btu per pound based on higher heating 

9 values; 

10 ‘‘(B) 44 percent for coal of 7,000 to 9,000 

11 Btu per pound based on higher heating values; 

12 and 

13 ‘‘(C) 40 percent for coal of less than 7,000 

14 Btu per pound based on higher heating values, 

15 except that energy used for coproduction or cogen16 eration shall not be counted in calculating the ther17 mal efficiency under this paragraph. 

18 ‘‘(b) SELECTION.—(1) In selecting the projects, up 

19 to 25 percent of the projects selected may be either co20 production or cogeneration or other gasification projects, 

21 but at least 25 percent of the projects shall be for the 

22 sole purpose of electrical generation, and priority should 

23 be given to equipment and projects less than 600 MW to 

24 foster and promote standard designs. 
165

•HR 1640 IH 

1 ‘‘(2) The Secretary shall give priority to projects that 

2 have been developed and demonstrated that are not yet 

3 cost competitive, and for coal energy generation projects 

4 that advance efficiency, environmental performance, or 

5 cost competitiveness significantly beyond the level of pollu6 tion control equipment that is in operation on a full scale. 

7 ‘‘SEC. 3106. FINANCIAL CRITERIA. 

8 ‘‘(a) IN GENERAL.—The Secretary shall only provide 

9 financial assistance to projects that meet the requirements 

10 of sections 3103 and 3104 and are likely to—

11 ‘‘(1) achieve overall cost reductions in the utili12 zation of coal to generate useful forms of energy; 

13 and 

14 ‘‘(2) improve the competitiveness of coal in 

15 order to maintain a diversity of domestic fuel choices 

16 in the United States to meet electricity generation 

17 requirements. 

18 ‘‘(b) CONDITIONS.—The Secretary shall not provide 

19 a funding award under this title unless—

20 ‘‘(1) the award recipient is financially viable 

21 without the receipt of additional Federal funding; 

22 and 

23 ‘‘(2) the recipient provides sufficient informa24 tion to the Secretary for the Secretary to ensure 
166

•HR 1640 IH 

1 that the award funds are spent efficiently and effec2 tively. 

3 ‘‘(c) EQUAL ACCESS.—The Secretary shall, to the ex4 tent practical, utilize cooperative agreement, loan guar5 antee, and direct Federal loan mechanisms designed to en6 sure that all electrical generation owners have equal access 

7 to these technology deployment incentives. The Secretary 

8 shall develop and direct a competitive solicitation process 

9 for the selection of technologies and projects under this 

10 title. 

11 ‘‘SEC. 3107. FEDERAL SHARE. 

12 ‘‘The Federal share of the cost of a coal or related 

13 technology project funded by the Secretary under this title 

14 shall not exceed 50 percent. For purposes of this title, 

15 Federal funding includes only appropriated funds. 

16 ‘‘SEC. 3108. APPLICABILITY. 

17 ‘‘No technology, or level of emission reduction, shall 

18 be treated as adequately demonstrated for purposes of sec19 tion 111 of the Clean Air Act (42 U.S.C. 7411), achievable 

20 for purposes of section 169 of the Clean Air Act (42 

21 U.S.C. 7479), or achievable in practice for purposes of 

22 section 171 of the Clean Air Act (42 U.S.C. 7501) solely 

23 by reason of the use of such technology, or the achieve24 ment of such emission reduction, by one or more facilities 

25 receiving assistance under this title.’’. 
167

•HR 1640 IH 

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

2 of contents of the Energy Policy Act of 1992 is amended 

3 by adding at the end the following:

‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM 

‘‘Sec. 3101. Findings; purposes; definitions. 

‘‘Sec. 3102. Authorization of program. 

‘‘Sec. 3103. Authorization of appropriations. 

‘‘Sec. 3104. Air pollution control project criteria. 

‘‘Sec. 3105. Criteria for generation projects. 

‘‘Sec. 3106. Financial criteria. 

‘‘Sec. 3107. Federal share. 

‘‘Sec. 3108. Applicability.’’.

4 TITLE V—INDIAN ENERGY 

5 SEC. 501. SHORT TITLE. 

6 This title may be cited as the ‘‘Indian Tribal Energy 

7 Development and Self-Determination Act of 2005’’. 

8 SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO9 GRAMS. 

10 (a) IN GENERAL.—Title II of the Department of En11 ergy Organization Act (42 U.S.C. 7131 et seq.) is amend12 ed by adding at the end the following: 

13 ‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

14 ‘‘SEC. 217. (a) ESTABLISHMENT.—There is estab15 lished within the Department an Office of Indian Energy 

16 Policy and Programs (referred to in this section as the 

17 ‘Office’). The Office shall be headed by a Director, who 

18 shall be appointed by the Secretary and compensated at 

19 a rate equal to that of level IV of the Executive Schedule 

20 under section 5315 of title 5, United States Code. 
168

•HR 1640 IH 

1 ‘‘(b) DUTIES OF DIRECTOR.—The Director, in ac2 cordance with Federal policies promoting Indian self-de3 termination and the purposes of this Act, shall provide, 

4 direct, foster, coordinate, and implement energy planning, 

5 education, management, conservation, and delivery pro6 grams of the Department that—

7 ‘‘(1) promote Indian tribal energy development, 

8 efficiency, and use; 

9 ‘‘(2) reduce or stabilize energy costs; 

10 ‘‘(3) enhance and strengthen Indian tribal en11 ergy and economic infrastructure relating to natural 

12 resource development and electrification; and 

13 ‘‘(4) bring electrical power and service to In14 dian land and the homes of tribal members located 

15 on Indian lands or acquired, constructed, or im16 proved (in whole or in part) with Federal funds.’’. 

17 (b) CONFORMING AMENDMENTS.—

18 (1) The table of contents of the Department of 

19 Energy Organization Act (42 U.S.C. prec. 7101) is 

20 amended—

21 (A) in the item relating to section 209, by 

22 striking ‘‘Section’’ and inserting ‘‘Sec.’’; and 

23 (B) by striking the items relating to sec24 tions 213 through 216 and inserting the fol25 lowing:
169

•HR 1640 IH 

‘‘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.’’.

1 (2) Section 5315 of title 5, United States Code, 

2 is amended by inserting ‘‘Director, Office of Indian 

3 Energy Policy and Programs, Department of En4 ergy.’’ after ‘‘Inspector General, Department of En5 ergy.’’. 

6 SEC. 503. INDIAN ENERGY. 

7 (a) IN GENERAL.—Title XXVI of the Energy Policy 

8 Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 

9 as follows: 

10 ‘‘TITLE XXVI—INDIAN ENERGY 

11 ‘‘SEC. 2601. DEFINITIONS. 

12 ‘‘For purposes of this title: 

13 ‘‘(1) The term ‘Director’ means the Director of 

14 the Office of Indian Energy Policy and Programs, 

15 Department of Energy. 

16 ‘‘(2) The term ‘Indian land’ means—

17 ‘‘(A) any land located within the bound18 aries of an Indian reservation, pueblo, or 

19 rancheria; 

20 ‘‘(B) any land not located within the 

21 boundaries of an Indian reservation, pueblo, or 

22 rancheria, the title to which is held—
170

•HR 1640 IH 

1 ‘‘(i) in trust by the United States for 

2 the benefit of an Indian tribe or an indi3 vidual Indian; 

4 ‘‘(ii) by an Indian tribe or an indi5 vidual Indian, subject to restriction against 

6 alienation under laws of the United States; 

7 or 

8 ‘‘(iii) by a dependent Indian commu9 nity; and 

10 ‘‘(C) land that is owned by an Indian tribe 

11 and was conveyed by the United States to a 

12 Native Corporation pursuant to the Alaska Na13 tive Claims Settlement Act (43 U.S.C. 1601 et 

14 seq.), or that was conveyed by the United 

15 States to a Native Corporation in exchange for 

16 such land. 

17 ‘‘(3) The term ‘Indian reservation’ includes—

18 ‘‘(A) an Indian reservation in existence in 

19 any State or States as of the date of enactment 

20 of this paragraph; 

21 ‘‘(B) a public domain Indian allotment; 

22 and 

23 ‘‘(C) a dependent Indian community lo24 cated within the borders of the United States, 
171

•HR 1640 IH 

1 regardless of whether the community is lo2 cated—

3 ‘‘(i) on original or acquired territory 

4 of the community; or 

5 ‘‘(ii) within or outside the boundaries 

6 of any particular State. 

7 ‘‘(4) The term ‘Indian tribe’ has the meaning 

8 given the term in section 4 of the Indian Self-Deter9 mination and Education Assistance Act (25 U.S.C. 

10 450b), except that the term ‘Indian tribe’, for the 

11 purpose of paragraph (11) and sections 2603(b)(3) 

12 and 2604, shall not include any Native Corporation. 

13 ‘‘(5) The term ‘integration of energy resources’ 

14 means any project or activity that promotes the loca15 tion and operation of a facility (including any pipe16 line, gathering system, transportation system or fa17 cility, or electric transmission or distribution facility) 

18 on or near Indian land to process, refine, generate 

19 electricity from, or otherwise develop energy re20 sources on, Indian land. 

21 ‘‘(6) The term ‘Native Corporation’ has the 

22 meaning given the term in section 3 of the Alaska 

23 Native Claims Settlement Act (43 U.S.C. 1602). 

24 ‘‘(7) The term ‘organization’ means a partner25 ship, joint venture, limited liability company, or 
172

•HR 1640 IH 

1 other unincorporated association or entity that is es2 tablished to develop Indian energy resources. 

3 ‘‘(8) The term ‘Program’ means the Indian en4 ergy resource development program established 

5 under section 2602(a). 

6 ‘‘(9) The term ‘Secretary’ means the Secretary 

7 of the Interior. 

8 ‘‘(10) The term ‘tribal energy resource develop9 ment organization’ means an organization of 2 or 

10 more entities, at least 1 of which is an Indian tribe, 

11 that has the written consent of the governing bodies 

12 of all Indian tribes participating in the organization 

13 to apply for a grant, loan, or other assistance au14 thorized by section 2602. 

15 ‘‘(11) The term ‘tribal land’ means any land or 

16 interests in land owned by any Indian tribe, title to 

17 which is held in trust by the United States or which 

18 is subject to a restriction against alienation under 

19 laws of the United States. 

20 ‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP21 MENT. 

22 ‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.—

23 ‘‘(1) To assist Indian tribes in the development 

24 of energy resources and further the goal of Indian 

25 self-determination, the Secretary shall establish and 
173

•HR 1640 IH 

1 implement an Indian energy resource development 

2 program to assist consenting Indian tribes and tribal 

3 energy resource development organizations in achiev4 ing the purposes of this title. 

5 ‘‘(2) In carrying out the Program, the Sec6 retary shall—

7 ‘‘(A) provide development grants to Indian 

8 tribes and tribal energy resource development 

9 organizations for use in developing or obtaining 

10 the managerial and technical capacity needed to 

11 develop energy resources on Indian land, and to 

12 properly account for resulting energy produc13 tion and revenues; 

14 ‘‘(B) provide grants to Indian tribes and 

15 tribal energy resource development organiza16 tions for use in carrying out projects to pro17 mote the integration of energy resources, and to 

18 process, use, or develop those energy resources, 

19 on Indian land; and 

20 ‘‘(C) provide low-interest loans to Indian 

21 tribes and tribal energy resource development 

22 organizations for use in the promotion of en23 ergy resource development on Indian land and 

24 integration of energy resources. 
174

•HR 1640 IH 

1 ‘‘(3) There are authorized to be appropriated to 

2 carry out this subsection such sums as are necessary 

3 for each of fiscal years 2006 through 2016. 

4 ‘‘(b) DEPARTMENT OF ENERGY INDIAN ENERGY

5 EDUCATION PLANNING AND MANAGEMENT ASSISTANCE

6 PROGRAM.—

7 ‘‘(1) The Director shall establish programs to 

8 assist consenting Indian tribes in meeting energy 

9 education, research and development, planning, and 

10 management needs. 

11 ‘‘(2) In carrying out this subsection, the Direc12 tor may provide grants, on a competitive basis, to an 

13 Indian tribe or tribal energy resource development 

14 organization for use in carrying out—

15 ‘‘(A) energy, energy efficiency, and energy 

16 conservation programs; 

17 ‘‘(B) studies and other activities sup18 porting tribal acquisitions of energy supplies, 

19 services, and facilities; 

20 ‘‘(C) planning, construction, development, 

21 operation, maintenance, and improvement of 

22 tribal electrical generation, transmission, and 

23 distribution facilities located on Indian land; 

24 and 
175

•HR 1640 IH 

1 ‘‘(D) development, construction, and inter2 connection of electric power transmission facili3 ties located on Indian land with other electric 

4 transmission facilities. 

5 ‘‘(3)(A) The Director may develop, in consulta6 tion with Indian tribes, a formula for providing 

7 grants under this subsection. 

8 ‘‘(B) In providing a grant under this sub9 section, the Director shall give priority to an applica10 tion received from an Indian tribe with inadequate 

11 electric service (as determined by the Director). 

12 ‘‘(4) The Secretary of Energy may issue such 

13 regulations as necessary to carry out this subsection. 

14 ‘‘(5) There are authorized to be appropriated to 

15 carry out this subsection $20,000,000 for each of 

16 fiscal years 2006 through 2016. 

17 ‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE

18 PROGRAM.—

19 ‘‘(1) Subject to paragraph (3), the Secretary of 

20 Energy may provide loan guarantees (as defined in 

21 section 502 of the Federal Credit Reform Act of 

22 1990 (2 U.S.C. 661a)) for not more than 90 percent 

23 of the unpaid principal and interest due on any loan 

24 made to any Indian tribe for energy development. 
176

•HR 1640 IH 

1 ‘‘(2) A loan guarantee under this subsection 

2 shall be made by—

3 ‘‘(A) a financial institution subject to ex4 amination by the Secretary of Energy; or 

5 ‘‘(B) an Indian tribe, from funds of the In6 dian tribe. 

7 ‘‘(3) The aggregate outstanding amount guar8 anteed by the Secretary of Energy at any time under 

9 this subsection shall not exceed $2,000,000,000. 

10 ‘‘(4) The Secretary of Energy may issue such 

11 regulations as the Secretary of Energy determines 

12 are necessary to carry out this subsection. 

13 ‘‘(5) There are authorized to be appropriated 

14 such sums as are necessary to carry out this sub15 section, to remain available until expended. 

16 ‘‘(6) Not later than 1 year from the date of en17 actment of this section, the Secretary of Energy 

18 shall report to Congress on the financing require19 ments of Indian tribes for energy development on In20 dian land. 

21 ‘‘(d) FEDERAL AGENCIES-INDIAN ENERGY PREF22 ERENCE.—

23 ‘‘(1) In purchasing electricity or any other en24 ergy product or byproduct, a Federal agency or de25 partment may give preference to an energy and re-
177

•HR 1640 IH 

1 source production enterprise, partnership, consor2 tium, corporation, or other type of business organi3 zation the majority of the interest in which is owned 

4 and controlled by 1 or more Indian tribes. 

5 ‘‘(2) In carrying out this subsection, a Federal 

6 agency or department shall not—

7 ‘‘(A) pay more than the prevailing market 

8 price for an energy product or byproduct; or 

9 ‘‘(B) obtain less than prevailing market 

10 terms and conditions. 

11 ‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA12 TION. 

13 ‘‘(a) GRANTS.—The Secretary may provide to Indian 

14 tribes, on an annual basis, grants for use in accordance 

15 with subsection (b). 

16 ‘‘(b) USE OF FUNDS.—Funds from a grant provided 

17 under this section may be used—

18 ‘‘(1) by an Indian tribe for the development of 

19 a tribal energy resource inventory or tribal energy 

20 resource on Indian land; 

21 ‘‘(2) by an Indian tribe for the development of 

22 a feasibility study or other report necessary to the 

23 development of energy resources on Indian land; 

24 ‘‘(3) by an Indian tribe (other than an Indian 

25 Tribe in Alaska except the Metlakatla Indian Com-
178

•HR 1640 IH 

1 munity) for the development and enforcement of 

2 tribal laws (including regulations) relating to tribal 

3 energy resource development and the development of 

4 technical infrastructure to protect the environment 

5 under applicable law; or 

6 ‘‘(4) by a Native Corporation for the develop7 ment and implementation of corporate policies and 

8 the development of technical infrastructure to pro9 tect the environment under applicable law; and 

10 ‘‘(5) by an Indian tribe for the training of em11 ployees that—

12 ‘‘(A) are engaged in the development of en13 ergy resources on Indian land; or 

14 ‘‘(B) are responsible for protecting the en15 vironment. 

16 ‘‘(c) OTHER ASSISTANCE.—In carrying out the obli17 gations of the United States under this title, the Secretary 

18 shall ensure, to the maximum extent practicable and to 

19 the extent of available resources, that upon the request 

20 of an Indian tribe, the Indian tribe shall have available 

21 scientific and technical information and expertise, for use 

22 in the Indian tribe’s regulation, development, and manage23 ment of energy resources on Indian land. The Secretary 

24 may fulfill this responsibility either directly, through the 

25 use of Federal officials, or indirectly, by providing finan-
179

•HR 1640 IH 

1 cial assistance to the Indian tribe to secure independent 

2 assistance. 

3 ‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS4 OF-WAY INVOLVING ENERGY DEVELOPMENT 

5 OR TRANSMISSION. 

6 ‘‘(a) LEASES AND BUSINESS AGREEMENTS.—Subject 

7 to the provisions of this section—

8 ‘‘(1) an Indian tribe may, at its discretion, 

9 enter into a lease or business agreement for the pur10 pose of energy resource development on tribal land, 

11 including a lease or business agreement for—

12 ‘‘(A) exploration for, extraction of, proc13 essing of, or other development of the Indian 

14 tribe’s energy mineral resources located on trib15 al land; and 

16 ‘‘(B) construction or operation of an elec17 tric generation, transmission, or distribution fa18 cility located on tribal land or a facility to proc19 ess or refine energy resources developed on trib20 al land; and 

21 ‘‘(2) such lease or business agreement described 

22 in paragraph (1) shall not require the approval of 

23 the Secretary under section 2103 of the Revised 

24 Statutes (25 U.S.C. 81) or any other provision of 

25 law, if—
180

•HR 1640 IH 

1 ‘‘(A) the lease or business agreement is ex2 ecuted pursuant to a tribal energy resource 

3 agreement approved by the Secretary under 

4 subsection (e); 

5 ‘‘(B) the term of the lease or business 

6 agreement does not exceed—

7 ‘‘(i) 30 years; or 

8 ‘‘(ii) in the case of a lease for the pro9 duction of oil resources, gas resources, or 

10 both, 10 years and as long thereafter as oil 

11 or gas is produced in paying quantities; 

12 and 

13 ‘‘(C) the Indian tribe has entered into a 

14 tribal energy resource agreement with the Sec15 retary, as described in subsection (e), relating 

16 to the development of energy resources on tribal 

17 land (including the periodic review and evalua18 tion of the activities of the Indian tribe under 

19 the agreement, to be conducted pursuant to the 

20 provisions required by subsection (e)(2)(D)(i)). 

21 ‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC

22 TRANSMISSION OR DISTRIBUTION LINES.—An Indian 

23 tribe may grant a right-of-way over tribal land for a pipe24 line or an electric transmission or distribution line without 

25 approval by the Secretary if—
181

•HR 1640 IH 

1 ‘‘(1) the right-of-way is executed in accordance 

2 with a tribal energy resource agreement approved by 

3 the Secretary under subsection (e); 

4 ‘‘(2) the term of the right-of-way does not ex5 ceed 30 years; 

6 ‘‘(3) the pipeline or electric transmission or dis7 tribution line serves—

8 ‘‘(A) an electric generation, transmission, 

9 or distribution facility located on tribal land; or 

10 ‘‘(B) a facility located on tribal land that 

11 processes or refines energy resources developed 

12 on tribal land; and 

13 ‘‘(4) the Indian tribe has entered into a tribal 

14 energy resource agreement with the Secretary, as de15 scribed in subsection (e), relating to the development 

16 of energy resources on tribal land (including the 

17 periodic review and evaluation of the Indian tribe’s 

18 activities under such agreement described in sub19 paragraphs (D) and (E) of subsection (e)(2)). 

20 ‘‘(c) RENEWALS.—A lease or business agreement en21 tered into or a right-of-way granted by an Indian tribe 

22 under this section may be renewed at the discretion of the 

23 Indian tribe in accordance with this section. 

24 ‘‘(d) VALIDITY.—No lease, business agreement, or 

25 right-of-way relating to the development of tribal energy 
182

•HR 1640 IH 

1 resources pursuant to the provisions of this section shall 

2 be valid unless the lease, business agreement, or right-of3 way is authorized by the provisions of a tribal energy re4 source agreement approved by the Secretary under sub5 section (e)(2). 

6 ‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.—

7 ‘‘(1) On issuance of regulations under para8 graph (8), an Indian tribe may submit to the Sec9 retary for approval a tribal energy resource agree10 ment governing leases, business agreements, and 

11 rights-of-way under this section. 

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

13 on which the Secretary receives a tribal energy re14 source agreement submitted by an Indian tribe 

15 under paragraph (1), or not later than 60 days after 

16 the Secretary receives a revised tribal energy re17 source agreement submitted by an Indian tribe 

18 under paragraph (4)(C), (or such later date as may 

19 be agreed to by the Secretary and the Indian tribe), 

20 the Secretary shall approve or disapprove the tribal 

21 energy resource agreement. 

22 ‘‘(B) The Secretary shall approve a tribal en23 ergy resource agreement submitted under paragraph 

24 (1) if—
183

•HR 1640 IH 

1 ‘‘(i) the Secretary determines that the In2 dian tribe has demonstrated that the Indian 

3 tribe has sufficient capacity to regulate the de4 velopment of energy resources of the Indian 

5 tribe; 

6 ‘‘(ii) the tribal energy resource agreement 

7 includes provisions required under subpara8 graph (D); and 

9 ‘‘(iii) the tribal energy resource agreement 

10 includes provisions that, with respect to a lease, 

11 business agreement, or right-of-way under this 

12 section—

13 ‘‘(I) ensure the acquisition of nec14 essary information from the applicant for 

15 the lease, business agreement, or right-of16 way; 

17 ‘‘(II) address the term of the lease or 

18 business agreement or the term of convey19 ance of the right-of-way; 

20 ‘‘(III) address amendments and re21 newals; 

22 ‘‘(IV) address the economic return to 

23 the Indian tribe under leases, business 

24 agreements, and rights-of-way; 
184

•HR 1640 IH 

1 ‘‘(V) address technical or other rel2 evant requirements; 

3 ‘‘(VI) establish requirements for envi4 ronmental review in accordance with sub5 paragraph (C); 

6 ‘‘(VII) ensure compliance with all ap7 plicable environmental laws; 

8 ‘‘(VIII) identify final approval author9 ity; 

10 ‘‘(IX) provide for public notification of 

11 final approvals; 

12 ‘‘(X) establish a process for consulta13 tion with any affected States concerning 

14 off-reservation impacts, if any, identified 

15 pursuant to the provisions required under 

16 subparagraph (C)(i); 

17 ‘‘(XI) describe the remedies for 

18 breach of the lease, business agreement, or 

19 right-of-way; 

20 ‘‘(XII) require each lease, business 

21 agreement, and right-of-way to include a 

22 statement that, in the event that any of its 

23 provisions violates an express term or re24 quirement set forth in the tribal energy re-
185

•HR 1640 IH 

1 source agreement pursuant to which it was 

2 executed—

3 ‘‘(aa) such provision shall be null 

4 and void; and 

5 ‘‘(bb) if the Secretary determines 

6 such provision to be material, the Sec7 retary shall have the authority to sus8 pend or rescind the lease, business 

9 agreement, or right-of-way or take 

10 other appropriate action that the Sec11 retary determines to be in the best in12 terest of the Indian tribe; 

13 ‘‘(XIII) require each lease, business 

14 agreement, and right-of-way to provide 

15 that it will become effective on the date on 

16 which a copy of the executed lease, busi17 ness agreement, or right-of-way is deliv18 ered to the Secretary in accordance with 

19 regulations adopted pursuant to this sub20 section; and 

21 ‘‘(XIV) include citations to tribal 

22 laws, regulations, or procedures, if any, 

23 that set out tribal remedies that must be 

24 exhausted before a petition may be sub-
186

•HR 1640 IH 

1 mitted to the Secretary pursuant to para2 graph (7)(B). 

3 ‘‘(C) Tribal energy resource agreements sub4 mitted under paragraph (1) shall establish, and in5 clude provisions to ensure compliance with, an envi6 ronmental review process that, with respect to a 

7 lease, business agreement, or right-of-way under this 

8 section, provides for—

9 ‘‘(i) the identification and evaluation of all 

10 significant environmental impacts (as compared 

11 with a no-action alternative), including effects 

12 on cultural resources; 

13 ‘‘(ii) the identification of proposed mitiga14 tion; 

15 ‘‘(iii) a process for ensuring that the public 

16 is informed of and has an opportunity to com17 ment on the environmental impacts of the pro18 posed action before tribal approval of the lease, 

19 business agreement, or right-of-way; and 

20 ‘‘(iv) sufficient administrative support and 

21 technical capability to carry out the environ22 mental review process. 

23 ‘‘(D) A tribal energy resource agreement nego24 tiated between the Secretary and an Indian tribe in 

25 accordance with this subsection shall include—
187

•HR 1640 IH 

1 ‘‘(i) provisions requiring the Secretary to 

2 conduct a periodic review and evaluation to 

3 monitor the performance of the Indian tribe’s 

4 activities associated with the development of en5 ergy resources under the tribal energy resource 

6 agreement; and 

7 ‘‘(ii) when such review and evaluation re8 sult in a finding by the Secretary of imminent 

9 jeopardy to a physical trust asset arising from 

10 a violation of the tribal energy resource agree11 ment or applicable Federal laws, provisions au12 thorizing the Secretary to take appropriate ac13 tions determined by the Secretary to be nec14 essary to protect such asset, which actions may 

15 include reassumption of responsibility for activi16 ties associated with the development of energy 

17 resources on tribal land until the violation and 

18 conditions that gave rise to such jeopardy have 

19 been corrected. 

20 ‘‘(E) The periodic review and evaluation de21 scribed in subparagraph (D) shall be conducted on 

22 an annual basis, except that, after the third such an23 nual review and evaluation, the Secretary and the 

24 Indian tribe may mutually agree to amend the tribal 

25 energy resource agreement to authorize the review 
188

•HR 1640 IH 

1 and evaluation required by subparagraph (D) to be 

2 conducted once every 2 years. 

3 ‘‘(3) The Secretary shall provide notice and op4 portunity for public comment on tribal energy re5 source agreements submitted for approval under 

6 paragraph (1). The Secretary’s review of a tribal en7 ergy resource agreement under the National Envi8 ronmental Policy Act of 1969 (42 U.S.C. 4321 et 

9 seq.) shall be limited to the direct effects of that ap10 proval. 

11 ‘‘(4) If the Secretary disapproves a tribal en12 ergy resource agreement submitted by an Indian 

13 tribe under paragraph (1), the Secretary shall, not 

14 later than 10 days after the date of disapproval—

15 ‘‘(A) notify the Indian tribe in writing of 

16 the basis for the disapproval; 

17 ‘‘(B) identify what changes or other ac18 tions are required to address the concerns of 

19 the Secretary; and 

20 ‘‘(C) provide the Indian tribe with an op21 portunity to revise and resubmit the tribal en22 ergy resource agreement. 

23 ‘‘(5) If an Indian tribe executes a lease or busi24 ness agreement or grants a right-of-way in accord25 ance with a tribal energy resource agreement ap-
189

•HR 1640 IH 

1 proved under this subsection, the Indian tribe shall, 

2 in accordance with the process and requirements set 

3 forth in the Secretary’s regulations adopted pursu4 ant to paragraph (8), provide to the Secretary—

5 ‘‘(A) a copy of the lease, business agree6 ment, or right-of-way document (including all 

7 amendments to and renewals of the document); 

8 and 

9 ‘‘(B) in the case of a tribal energy resource 

10 agreement or a lease, business agreement, or 

11 right-of-way that permits payments to be made 

12 directly to the Indian tribe, information and 

13 documentation of those payments sufficient to 

14 enable the Secretary to discharge the trust re15 sponsibility of the United States to enforce the 

16 terms of, and protect the Indian tribe’s rights 

17 under, the lease, business agreement, or right18 of-way. 

19 ‘‘(6)(A) For purposes of the activities to be un20 dertaken by the Secretary pursuant to this section, 

21 the Secretary shall—

22 ‘‘(i) carry out such activities in a manner 

23 consistent with the trust responsibility of the 

24 United States relating to mineral and other 

25 trust resources; and 
190

•HR 1640 IH 

1 ‘‘(ii) act in good faith and in the best in2 terests of the Indian tribes. 

3 ‘‘(B) Subject to the provisions of subsections 

4 (a)(2), (b), and (c) waiving the requirement of Sec5 retarial approval of leases, business agreements, and 

6 rights-of-way executed pursuant to tribal energy re7 source agreements approved under this section, and 

8 the provisions of subparagraph (D), nothing in this 

9 section shall absolve the United States from any re10 sponsibility to Indians or Indian tribes, including, 

11 but not limited to, those which derive from the trust 

12 relationship or from any treaties, statutes, and other 

13 laws of the United States, Executive Orders, or 

14 agreements between the United States and any In15 dian tribe. 

16 ‘‘(C) The Secretary shall continue to have a 

17 trust obligation to ensure that the rights and inter18 ests of an Indian tribe are protected in the event 

19 that—

20 ‘‘(i) any other party to any such lease, 

21 business agreement, or right-of-way violates any 

22 applicable provision of Federal law or the terms 

23 of any lease, business agreement, or right-of24 way under this section; or 
191

•HR 1640 IH 

1 ‘‘(ii) any provision in such lease, business 

2 agreement, or right-of-way violates any express 

3 provision or requirement set forth in the tribal 

4 energy resource agreement pursuant to which 

5 the lease, business agreement, or right-of-way 

6 was executed. 

7 ‘‘(D) Notwithstanding subparagraph (B), the 

8 United States shall not be liable to any party (in9 cluding any Indian tribe) for any of the negotiated 

10 terms of, or any losses resulting from the negotiated 

11 terms of, a lease, business agreement, or right-of12 way executed pursuant to and in accordance with a 

13 tribal energy resource agreement approved by the 

14 Secretary under paragraph (2). For the purpose of 

15 this subparagraph, the term ‘negotiated terms’ 

16 means any terms or provisions that are negotiated 

17 by an Indian tribe and any other party or parties to 

18 a lease, business agreement, or right-of-way entered 

19 into pursuant to an approved tribal energy resource 

20 agreement. 

21 ‘‘(7)(A) In this paragraph, the term ‘interested 

22 party’ means any person or entity the interests of 

23 which have sustained or will sustain a significant ad24 verse environmental impact as a result of the failure 

25 of an Indian tribe to comply with a tribal energy re-
192

•HR 1640 IH 

1 source agreement of the Indian tribe approved by 

2 the Secretary under paragraph (2). 

3 ‘‘(B) After exhaustion of tribal remedies, and in 

4 accordance with the process and requirements set 

5 forth in regulations adopted by the Secretary pursu6 ant to paragraph (8), an interested party may sub7 mit to the Secretary a petition to review compliance 

8 of an Indian tribe with a tribal energy resource 

9 agreement of the Indian tribe approved by the Sec10 retary under paragraph (2). 

11 ‘‘(C)(i) Not later than 120 days after the date 

12 on which the Secretary receives a petition under sub13 paragraph (B), the Secretary shall determine wheth14 er the Indian tribe is not in compliance with the 

15 tribal energy resource agreement, as alleged in the 

16 petition. 

17 ‘‘(ii) The Secretary may adopt procedures 

18 under paragraph (8) authorizing an extension of 

19 time, not to exceed 120 days, for making the deter20 mination under clause (i) in any case in which the 

21 Secretary determines that additional time is nec22 essary to evaluate the allegations of the petition. 

23 ‘‘(iii) Subject to subparagraph (D), if the Sec24 retary determines that the Indian tribe is not in 

25 compliance with the tribal energy resource agree-
193

•HR 1640 IH 

1 ment as alleged in the petition, the Secretary shall 

2 take such action as is necessary to ensure compli3 ance with the provisions of the tribal energy resource 

4 agreement, which action may include—

5 ‘‘(I) temporarily suspending some or all ac6 tivities under a lease, business agreement, or 

7 right-of-way under this section until the Indian 

8 tribe or such activities are in compliance with 

9 the provisions of the approved tribal energy re10 source agreement; or 

11 ‘‘(II) rescinding approval of all or part of 

12 the tribal energy resource agreement, and if all 

13 of such agreement is rescinded, reassuming the 

14 responsibility for approval of any future leases, 

15 business agreements, or rights-of-way described 

16 in subsections (a) and (b). 

17 ‘‘(D) Prior to seeking to ensure compliance with 

18 the provisions of the tribal energy resource agree19 ment of an Indian tribe under subparagraph (C)(iii), 

20 the Secretary shall—

21 ‘‘(i) make a written determination that de22 scribes the manner in which the tribal energy 

23 resource agreement has been violated; 
194

•HR 1640 IH 

1 ‘‘(ii) provide the Indian tribe with a writ2 ten notice of the violations together with the 

3 written determination; and 

4 ‘‘(iii) before taking any action described in 

5 subparagraph (C)(iii) or seeking any other rem6 edy, provide the Indian tribe with a hearing and 

7 a reasonable opportunity to attain compliance 

8 with the tribal energy resource agreement. 

9 ‘‘(E) An Indian tribe described in subparagraph 

10 (D) shall retain all rights to appeal as provided in 

11 regulations issued by the Secretary. 

12 ‘‘(8) Not later than 1 year after the date of en13 actment of the Indian Tribal Energy Development 

14 and Self-Determination Act of 2005, the Secretary 

15 shall issue regulations that implement the provisions 

16 of this subsection, including—

17 ‘‘(A) criteria to be used in determining the 

18 capacity of an Indian tribe described in para19 graph (2)(B)(i), including the experience of the 

20 Indian tribe in managing natural resources and 

21 financial and administrative resources available 

22 for use by the Indian tribe in implementing the 

23 approved tribal energy resource agreement of 

24 the Indian tribe; 
195

•HR 1640 IH 

1 ‘‘(B) a process and requirements in accord2 ance with which an Indian tribe may—

3 ‘‘(i) voluntarily rescind a tribal energy 

4 resource agreement approved by the Sec5 retary under this subsection; and 

6 ‘‘(ii) return to the Secretary the re7 sponsibility to approve any future leases, 

8 business agreements, and rights-of-way de9 scribed in this subsection; 

10 ‘‘(C) provisions setting forth the scope of, 

11 and procedures for, the periodic review and 

12 evaluation described in subparagraphs (D) and 

13 (E) of paragraph (2), including provisions for 

14 review of transactions, reports, site inspections, 

15 and any other review activities the Secretary 

16 determines to be appropriate; and 

17 ‘‘(D) provisions defining final agency ac18 tions after exhaustion of administrative appeals 

19 from determinations of the Secretary under 

20 paragraph (7). 

21 ‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this 

22 section affects the application of—

23 ‘‘(1) any Federal environment law; 

24 ‘‘(2) the Surface Mining Control and Reclama25 tion Act of 1977 (30 U.S.C. 1201 et seq.); or 
196

•HR 1640 IH 

1 ‘‘(3) except as otherwise provided in this title, 

2 the Indian Mineral Development Act of 1982 (25 

3 U.S.C. 2101 et seq.) and the National Environ4 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

5 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

6 are authorized to be appropriated to the Secretary such 

7 sums as are necessary for each of fiscal years 2006 

8 through 2016 to implement the provisions of this section 

9 and to make grants or provide other appropriate assist10 ance to Indian tribes to assist the Indian tribes in devel11 oping and implementing tribal energy resource agreements 

12 in accordance with the provisions of this section. 

13 ‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW. 

14 ‘‘(a) IN GENERAL.—The Secretary shall conduct a 

15 review of all activities being conducted under the Indian 

16 Mineral Development Act of 1982 (25 U.S.C. 2101 et 

17 seq.) as of that date. 

18 ‘‘(b) REPORT.—Not later than 1 year after the date 

19 of enactment of the Indian Tribal Energy Development 

20 and Self-Determination Act of 2005, the Secretary shall 

21 submit to Congress a report that includes—

22 ‘‘(1) the results of the review; 

23 ‘‘(2) recommendations to ensure that Indian 

24 tribes have the opportunity to develop Indian energy 

25 resources; and 
197

•HR 1640 IH 

1 ‘‘(3) an analysis of the barriers to the develop2 ment of energy resources on Indian land (including 

3 legal, fiscal, market, and other barriers), along with 

4 recommendations for the removal of those barriers.’’. 

5 (b) CONFORMING AMENDMENTS.—The table of con6 tents for the Energy Policy Act of 1992 is amended by 

7 striking the items relating to title XXVI and inserting the 

8 following:

‘‘Sec. 2601. Definitions. 

‘‘Sec. 2602. Indian tribal energy resource development. 

‘‘Sec. 2603. Indian tribal energy resource regulation. 

‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy 

development or transmission. 

‘‘Sec. 2605. Indian mineral development review.’’.

9 SEC. 504. FOUR CORNERS TRANSMISSION LINE PROJECT. 

10 The Dine Power Authority, an enterprise of the Nav11 ajo Nation, shall be eligible to receive grants and other 

12 assistance as authorized by section 217 of the Department 

13 of Energy Organization Act, as added by section 502 of 

14 this title, and section 2602 of the Energy Policy Act of 

15 1992, as amended by this title, for activities associated 

16 with the development of a transmission line from the Four 

17 Corners Area to southern Nevada, including related power 

18 generation opportunities. 

19 SEC. 505. ENERGY EFFICIENCY IN FEDERALLY ASSISTED 

20 HOUSING. 

21 (a) IN GENERAL.—The Secretary of Housing and 

22 Urban Development shall promote energy conservation in 
198

•HR 1640 IH 

1 housing that is located on Indian land and assisted with 

2 Federal resources through—

3 (1) the use of energy-efficient technologies and 

4 innovations (including the procurement of energy-ef5 ficient refrigerators and other appliances); 

6 (2) the promotion of shared savings contracts; 

7 and 

8 (3) the use and implementation of such other 

9 similar technologies and innovations as the Secretary 

10 of Housing and Urban Development considers to be 

11 appropriate. 

12 (b) AMENDMENT.—Section 202(2) of the Native 

13 American Housing and Self-Determination Act of 1996 

14 (25 U.S.C. 4132(2)) is amended by inserting ‘‘improve15 ment to achieve greater energy efficiency,’’ after ‘‘plan16 ning,’’. 

17 SEC. 506. CONSULTATION WITH INDIAN TRIBES. 

18 In carrying out this title and the amendments made 

19 by this title, the Secretary of Energy and the Secretary 

20 shall, as appropriate and to the maximum extent prac21 ticable, involve and consult with Indian tribes in a manner 

22 that is consistent with the Federal trust and the govern23 ment-to-government relationships between Indian tribes 

24 and the United States. 
199

•HR 1640 IH 

1 TITLE VI—NUCLEAR MATTERS 

2 Subtitle A—Price-Anderson Act 

3 Amendments 

4 SEC. 601. SHORT TITLE. 

5 This subtitle may be cited as the ‘‘Price-Anderson 

6 Amendments Act of 2005’’ . 

7 SEC. 602. EXTENSION OF INDEMNIFICATION AUTHORITY. 

8 (a) INDEMNIFICATION OF NUCLEAR REGULATORY

9 COMMISSION LICENSEES.—Section 170 c. of the Atomic 

10 Energy Act of 1954 (42 U.S.C. 2210(c)) is amended—

11 (1) in the subsection heading, by striking ‘‘LI12 CENSES’’ and inserting ‘‘LICENSEES’’; and 

13 (2) by striking ‘‘December 31, 2003’’ each 

14 place it appears and inserting ‘‘December 31, 

15 2025’’. 

16 (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY

17 CONTRACTORS.—Section 170 d.(1)(A) of the Atomic En18 ergy Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended 

19 by striking ‘‘December 31, 2006’’ and inserting ‘‘Decem20 ber 31, 2025’’. 

21 (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL

22 INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 

23 of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘Au24 gust 1, 2002’’ each place it appears and inserting ‘‘Decem25 ber 31, 2025’’. 
200

•HR 1640 IH 

1 SEC. 603. MAXIMUM ASSESSMENT. 

2 Section 170 of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2210) is amended—

4 (1) in the second proviso of the third sentence 

5 of subsection b.(1)—

6 (A) by striking ‘‘$63,000,000’’ and insert7 ing ‘‘$95,800,000’’; and 

8 (B) by striking ‘‘$10,000,000 in any 1 

9 year’’ and inserting ‘‘$15,000,000 in any 1 year 

10 (subject to adjustment for inflation under sub11 section t.)’’; and 

12 (2) in subsection t.(1)—

13 (A) by inserting ‘‘total and annual’’ after 

14 ‘‘amount of the maximum’’; 

15 (B) by striking ‘‘the date of the enactment 

16 of the Price-Anderson Amendments Act of 

17 1988’’ and inserting ‘‘August 20, 2003’’; and 

18 (C) in subparagraph (A), by striking ‘‘such 

19 date of enactment’’ and inserting ‘‘August 20, 

20 2003’’. 

21 SEC. 604. DEPARTMENT OF ENERGY LIABILITY LIMIT. 

22 (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY

23 CONTRACTORS.—Section 170 d. of the Atomic Energy Act 

24 of 1954 (42 U.S.C. 2210(d)) is amended by striking para25 graph (2) and inserting the following: 
201

•HR 1640 IH 

1 ‘‘(2) In an agreement of indemnification entered into 

2 under paragraph (1), the Secretary—

3 ‘‘(A) may require the contractor to provide and 

4 maintain financial protection of such a type and in 

5 such amounts as the Secretary shall determine to be 

6 appropriate to cover public liability arising out of or 

7 in connection with the contractual activity; and 

8 ‘‘(B) shall indemnify the persons indemnified 

9 against such liability above the amount of the finan10 cial protection required, in the amount of 

11 $10,000,000,000 (subject to adjustment for inflation 

12 under subsection t.), in the aggregate, for all per13 sons indemnified in connection with the contract and 

14 for each nuclear incident, including such legal costs 

15 of the contractor as are approved by the Secretary.’’. 

16 (b) CONTRACT AMENDMENTS.—Section 170 d. of the 

17 Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is further 

18 amended by striking paragraph (3) and inserting the fol19 lowing—

20 ‘‘(3) All agreements of indemnification under which 

21 the Department of Energy (or its predecessor agencies) 

22 may be required to indemnify any person under this sec23 tion shall be deemed to be amended, on the date of enact24 ment of the Price-Anderson Amendments Act of 2005, to 

25 reflect the amount of indemnity for public liability and any 
202

•HR 1640 IH 

1 applicable financial protection required of the contractor 

2 under this subsection.’’. 

3 (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 

4 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 

5 amended—

6 (1) by striking ‘‘the maximum amount of finan7 cial protection required under subsection b. or’’; and 

8 (2) by striking ‘‘paragraph (3) of subsection d., 

9 whichever amount is more’’ and inserting ‘‘para10 graph (2) of subsection d.’’. 

11 SEC. 605. INCIDENTS OUTSIDE THE UNITED STATES. 

12 (a) AMOUNT OF INDEMNIFICATION.—Section 170 

13 d.(5) of the Atomic Energy Act of 1954 (42 U.S.C. 

14 2210(d)(5)) is amended by striking ‘‘$100,000,000’’ and 

15 inserting ‘‘$500,000,000’’. 

16 (b) LIABILITY LIMIT.—Section 170 e.(4) of the 

17 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is 

18 amended by striking ‘‘$100,000,000’’ and inserting 

19 ‘‘$500,000,000’’. 

20 SEC. 606. REPORTS. 

21 Section 170 p. of the Atomic Energy Act of 1954 (42 

22 U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 

23 and inserting ‘‘December 31, 2021’’. 
203

•HR 1640 IH 

1 SEC. 607. INFLATION ADJUSTMENT. 

2 Section 170 t. of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2210(t)) is amended—

4 (1) by redesignating paragraph (2) as para5 graph (3); and 

6 (2) by inserting after paragraph (1) the fol7 lowing: 

8 ‘‘(2) The Secretary shall adjust the amount of indem9 nification provided under an agreement of indemnification 

10 under subsection d. not less than once during each 5-year 

11 period following July 1, 2003, in accordance with the ag12 gregate percentage change in the Consumer Price Index 

13 since—

14 ‘‘(A) that date, in the case of the first adjust15 ment under this paragraph; or 

16 ‘‘(B) the previous adjustment under this para17 graph.’’. 

18 SEC. 608. TREATMENT OF MODULAR REACTORS. 

19 Section 170 b. of the Atomic Energy Act of 1954 (42 

20 U.S.C. 2210(b)) is amended by adding at the end the fol21 lowing: 

22 ‘‘(5)(A) For purposes of this section only, the Com23 mission shall consider a combination of facilities described 

24 in subparagraph (B) to be a single facility having a rated 

25 capacity of 100,000 electrical kilowatts or more. 
204

•HR 1640 IH 

1 ‘‘(B) A combination of facilities referred to in sub2 paragraph (A) is 2 or more facilities located at a single 

3 site, each of which has a rated capacity of 100,000 elec4 trical kilowatts or more but not more than 300,000 elec5 trical kilowatts, with a combined rated capacity of not 

6 more than 1,300,000 electrical kilowatts.’’. 

7 SEC. 609. APPLICABILITY. 

8 The amendments made by sections 603, 604, and 605 

9 do not apply to a nuclear incident that occurs before the 

10 date of the enactment of this Act. 

11 SEC. 610. PROHIBITION ON ASSUMPTION BY UNITED 

12 STATES GOVERNMENT OF LIABILITY FOR 

13 CERTAIN FOREIGN INCIDENTS. 

14 Section 170 of the Atomic Energy Act of 1954 (42 

15 U.S.C. 2210) is amended by adding at the end the fol16 lowing new subsection: 

17 ‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR

18 CERTAIN FOREIGN INCIDENTS.—Notwithstanding this 

19 section or any other provision of law, no officer of the 

20 United States or of any department, agency, or instrumen21 tality of the United States Government may enter into any 

22 contract or other arrangement, or into any amendment or 

23 modification of a contract or other arrangement, the pur24 pose or effect of which would be to directly or indirectly 

25 impose liability on the United States Government, or any 
205

•HR 1640 IH 

1 department, agency, or instrumentality of the United 

2 States Government, or to otherwise directly or indirectly 

3 require an indemnity by the United States Government, 

4 for nuclear incidents occurring in connection with the de5 sign, construction, or operation of a production facility or 

6 utilization facility in any country whose government has 

7 been identified by the Secretary of State as engaged in 

8 state sponsorship of terrorist activities (specifically includ9 ing any country the government of which, as of September 

10 11, 2001, had been determined by the Secretary of State 

11 under section 620A(a) of the Foreign Assistance Act of 

12 1961 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export 

13 Administration Act of 1979 (50 U.S.C. App. 2405(j)(1)), 

14 or section 40(d) of the Arms Export Control Act (22 

15 U.S.C. 2780(d)) to have repeatedly provided support for 

16 acts of international terrorism). This subsection shall not 

17 apply to nuclear incidents occurring as a result of mis18 sions, carried out under the direction of the Secretary of 

19 Energy, the Secretary of Defense, or the Secretary of 

20 State, that are necessary to safely secure, store, transport, 

21 or remove nuclear materials for nuclear safety or non22 proliferation purposes.’’. 
206

•HR 1640 IH 

1 SEC. 611. CIVIL PENALTIES. 

2 (a) REPEAL OF AUTOMATIC REMISSION.—Section 

3 234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 

4 2282a(b)(2)) is amended by striking the last sentence. 

5 (b) LIMITATION FOR NOT-FOR-PROFIT INSTITU6 TIONS.—Subsection d. of section 234A of the Atomic En7 ergy Act of 1954 (42 U.S.C. 2282a(d)) is amended to read 

8 as follows: 

9 ‘‘d.(1) Notwithstanding subsection a., in the case of 

10 any not-for-profit contractor, subcontractor, or supplier, 

11 the total amount of civil penalties paid under subsection 

12 a. may not exceed the total amount of fees paid within 

13 any 1-year period (as determined by the Secretary) under 

14 the contract under which the violation occurs. 

15 ‘‘(2) For purposes of this section, the term ‘not-for16 profit’ means that no part of the net earnings of the con17 tractor, subcontractor, or supplier inures to the benefit of 

18 any natural person or for-profit artificial person.’’. 

19 (c) EFFECTIVE DATE.—The amendments made by 

20 this section shall not apply to any violation of the Atomic 

21 Energy Act of 1954 (42 U.S.C. 2011 et seq.) occurring 

22 under a contract entered into before the date of enactment 

23 of this section. 
207

•HR 1640 IH 

1 SEC. 612. FINANCIAL ACCOUNTABILITY. 

2 (a) AMENDMENT.—Section 170 of the Atomic En3 ergy Act of 1954 (42 U.S.C. 2210) is amended by adding 

4 at the end the following new subsection: 

5 ‘‘v. FINANCIAL ACCOUNTABILITY.—(1) Notwith6 standing subsection d., the Attorney General may bring 

7 an action in the appropriate United States district court 

8 to recover from a contractor of the Secretary (or subcon9 tractor or supplier of such contractor) amounts paid by 

10 the Federal Government under an agreement of indem11 nification under subsection d. for public liability resulting 

12 from conduct which constitutes intentional misconduct of 

13 any corporate officer, manager, or superintendent of such 

14 contractor (or subcontractor or supplier of such con15 tractor). 

16 ‘‘(2) The Attorney General may recover under 

17 paragraph (1) an amount not to exceed the amount 

18 of the profit derived by the defendant from the con19 tract. 

20 ‘‘(3) No amount recovered from any contractor 

21 (or subcontractor or supplier of such contractor) 

22 under paragraph (1) may be reimbursed directly or 

23 indirectly by the Department of Energy. 

24 ‘‘(4) Paragraph (1) shall not apply to any non25 profit entity conducting activities under contract for 

26 the Secretary. 
208

•HR 1640 IH 

1 ‘‘(5) No waiver of a defense required under this 

2 section shall prevent a defendant from asserting 

3 such defense in an action brought under this sub4 section. 

5 ‘‘(6) The Secretary shall, by rule, define the 

6 terms ‘profit’ and ‘nonprofit entity’ for purposes of 

7 this subsection. Such rulemaking shall be completed 

8 not later than 180 days after the date of the enact9 ment of this subsection.’’. 

10 (b) EFFECTIVE DATE.—The amendment made by 

11 this section shall not apply to any agreement of indem12 nification entered into under section 170 d. of the Atomic 

13 Energy Act of 1954 (42 U.S.C. 2210(d)) before the date 

14 of the enactment of this Act. 

15 Subtitle B—General Nuclear 

16 Matters 

17 SEC. 621. LICENSES. 

18 Section 103 c. of the Atomic Energy Act of 1954 (42 

19 U.S.C. 2133(c)) is amended by inserting ‘‘from the au20 thorization to commence operations’’ after ‘‘forty years’’. 

21 SEC. 622. NRC TRAINING PROGRAM. 

22 (a) IN GENERAL.—In order to maintain the human 

23 resource investment and infrastructure of the United 

24 States in the nuclear sciences, health physics, and engi25 neering fields, in accordance with the statutory authorities 
209

•HR 1640 IH 

1 of the Nuclear Regulatory Commission relating to the ci2 vilian nuclear energy program, the Nuclear Regulatory 

3 Commission shall carry out a training and fellowship pro4 gram to address shortages of individuals with critical nu5 clear safety regulatory skills. 

6 (b) AUTHORIZATION OF APPROPRIATIONS.—

7 (1) IN GENERAL.—There are authorized to be 

8 appropriated to the Nuclear Regulatory Commission 

9 to carry out this section $1,000,000 for each of fis10 cal years 2005 through 2009. 

11 (2) AVAILABILITY.—Funds made available 

12 under paragraph (1) shall remain available until ex13 pended. 

14 SEC. 623. COST RECOVERY FROM GOVERNMENT AGENCIES. 

15 Section 161 w. of the Atomic Energy Act of 1954 

16 (42 U.S.C. 2201(w)) is amended—

17 (1) by striking ‘‘for or is issued’’ and all that 

18 follows through ‘‘1702’’ and inserting ‘‘to the Com19 mission for, or is issued by the Commission, a li20 cense or certificate’’; 

21 (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 

22 and 

23 (3) by striking ‘‘, of applicants for, or holders 

24 of, such licenses or certificates’’. 
210

•HR 1640 IH 

1 SEC. 624. ELIMINATION OF PENSION OFFSET. 

2 Section 161 of the Atomic Energy Act of 1954 (42 

3 U.S.C. 2201) is amended by adding at the end the fol4 lowing: 

5 ‘‘y. Exempt from the application of sections 8344 and 

6 8468 of title 5, United States Code, an annuitant who was 

7 formerly an employee of the Commission who is hired by 

8 the Commission as a consultant, if the Commission finds 

9 that the annuitant has a skill that is critical to the per10 formance of the duties of the Commission.’’. 

11 SEC. 625. ANTITRUST REVIEW. 

12 Section 105 c. of the Atomic Energy Act of 1954 (42 

13 U.S.C. 2135(c)) is amended by adding at the end the fol14 lowing: 

15 ‘‘(9) APPLICABILITY.—This subsection does not 

16 apply to an application for a license to construct or oper17 ate a utilization facility or production facility under sec18 tion 103 or 104 b. that is filed on or after the date of 

19 enactment of this paragraph.’’. 

20 SEC. 626. DECOMMISSIONING. 

21 Section 161 i. of the Atomic Energy Act of 1954 (42 

22 U.S.C. 2201(i)) is amended—

23 (1) by striking ‘‘and (3)’’ and inserting ‘‘(3)’’; 

24 and 

25 (2) by inserting before the semicolon at the end 

26 the following: ‘‘, and (4) to ensure that sufficient 
211

•HR 1640 IH 

1 funds will be available for the decommissioning of 

2 any production or utilization facility licensed under 

3 section 103 or 104 b., including standards and re4 strictions governing the control, maintenance, use, 

5 and disbursement by any former licensee under this 

6 Act that has control over any fund for the decom7 missioning of the facility’’. 

8 SEC. 627. LIMITATION ON LEGAL FEE REIMBURSEMENT. 

9 Title II of the Energy Reorganization Act of 1974 

10 (42 U.S.C. 5841 et seq.) is amended by adding at the end 

11 the following new section: 

12 ‘‘LIMITATION ON LEGAL FEE REIMBURSEMENT

13 ‘‘SEC. 212. The Department of Energy shall not, ex14 cept as required under a contract entered into before the 

15 date of enactment of this section, reimburse any con16 tractor or subcontractor of the Department for any legal 

17 fees or expenses incurred with respect to a complaint sub18 sequent to—

19 ‘‘(1) an adverse determination on the merits 

20 with respect to such complaint against the con21 tractor or subcontractor by the Director of the De22 partment of Energy’s Office of Hearings and Ap23 peals pursuant to part 708 of title 10, Code of Fed24 eral Regulations, or by a Department of Labor Ad25 ministrative Law Judge pursuant to section 211 of 

26 this Act; or 
212

•HR 1640 IH 

1 ‘‘(2) an adverse final judgment by any State or 

2 Federal court with respect to such complaint against 

3 the contractor or subcontractor for wrongful termi4 nation or retaliation due to the making of disclo5 sures protected under chapter 12 of title 5, United 

6 States Code, section 211 of this Act, or any com7 parable State law, 

8 unless the adverse determination or final judgment is re9 versed upon further administrative or judicial review.’’. 

10 SEC. 629. REPORT ON FEASIBILITY OF DEVELOPING COM11 MERCIAL NUCLEAR ENERGY GENERATION 

12 FACILITIES AT EXISTING DEPARTMENT OF 

13 ENERGY SITES. 

14 Not later than 1 year after the date of the enactment 

15 of this Act, the Secretary of Energy shall submit to Con16 gress a report on the feasibility of developing commercial 

17 nuclear energy generation facilities at Department of En18 ergy sites in existence on the date of enactment of this 

19 Act. 

20 SEC. 630. URANIUM SALES. 

21 (a) SALES, TRANSFERS, AND SERVICES.—Section 

22 3112 of the USEC Privatization Act (42 U.S.C. 2297h–

23 10) is amended by striking subsections (d), (e), and (f) 

24 and inserting the following: 
213

•HR 1640 IH 

1 ‘‘(3) The Secretary may transfer to the Corporation, 

2 notwithstanding subsections (b)(2) and (d), natural ura3 nium in amounts sufficient to fulfill the Department of 

4 Energy’s commitments under Article 4(B) of the Agree5 ment between the Department and the Corporation dated 

6 June 17, 2002. 

7 ‘‘(d) INVENTORY SALES.—(1) In addition to the 

8 transfers and sales authorized under subsections (b) and 

9 (c) and under paragraph (5) of this subsection, the United 

10 States Government may transfer or sell uranium in any 

11 form subject to paragraphs (2), (3), and (4). 

12 ‘‘(2) Except as provided in subsections (b) and (c) 

13 and paragraph (5) of this subsection, no sale or transfer 

14 of uranium shall be made under this subsection by the 

15 United States Government unless—

16 ‘‘(A) the President determines that the material 

17 is not necessary for national security needs and the 

18 sale or transfer has no adverse impact on implemen19 tation of existing government-to-government agree20 ments; 

21 ‘‘(B) the price paid to the appropriate Federal 

22 agency, if the transaction is a sale, will not be less 

23 than the fair market value of the material; and 
214

•HR 1640 IH 

1 ‘‘(C) the sale or transfer to commercial nuclear 

2 power end users is made pursuant to a contract of 

3 at least 3 years’ duration. 

4 ‘‘(3) Except as provided in paragraph (5), the United 

5 States Government shall not make any transfer or sale 

6 of uranium in any form under this subsection that would 

7 cause the total amount of uranium transferred or sold pur8 suant to this subsection that is delivered for consumption 

9 by commercial nuclear power end users to exceed—

10 ‘‘(A) 3,000,000 pounds of U3 O8 equivalent in 

11 fiscal year 2005, 2006, 2007, 2008, or 2009; 

12 ‘‘(B) 5,000,000 pounds of U3O8 equivalent in 

13 fiscal year 2010 or 2011; 

14 ‘‘(C) 7,000,000 pounds of U3O8 equivalent in 

15 fiscal year 2012; and 

16 ‘‘(D) 10,000,000 pounds of U3O8 equivalent in 

17 fiscal year 2013 or any fiscal year thereafter. 

18 ‘‘(4) Except for sales or transfers under paragraph 

19 (5), for the purposes of this subsection, the recovery of 

20 uranium from uranium bearing materials transferred or 

21 sold by the United States Government to the domestic 

22 uranium industry shall be the preferred method of making 

23 uranium available. The recovered uranium shall be count24 ed against the annual maximum deliveries set forth in this 

25 section, when such uranium is sold to end users. 
215

•HR 1640 IH 

1 ‘‘(5) The United States Government may make the 

2 following sales and transfers: 

3 ‘‘(A) Sales or transfers to a Federal agency if 

4 the material is transferred for the use of the receiv5 ing agency without any resale or transfer to another 

6 entity and the material does not meet commercial 

7 specifications. 

8 ‘‘(B) Sales or transfers to any person for na9 tional security purposes, as determined by the Sec10 retary. 

11 ‘‘(C) Sales or transfers to any State or local 

12 agency or nonprofit, charitable, or educational insti13 tution for use other than the generation of electricity 

14 for commercial use. 

15 ‘‘(D) Sales or transfers to the Department of 

16 Energy research reactor sales program. 

17 ‘‘(E) Sales or transfers, at fair market value, 

18 for emergency purposes in the event of a disruption 

19 in supply to commercial nuclear power end users in 

20 the United States. 

21 ‘‘(F) Sales or transfers, at fair market value, 

22 for use in a commercial reactor in the United States 

23 with nonstandard fuel requirements. 

24 ‘‘(G) Sales or transfers provided for under law 

25 for use by the Tennessee Valley Authority in relation 
216

•HR 1640 IH 

1 to the Department of Energy’s highly enriched ura2 nium or tritium programs. 

3 ‘‘(6) For purposes of this subsection, the term 

4 ‘United States Government’ does not include the Ten5 nessee Valley Authority. 

6 ‘‘(e) SAVINGS PROVISION.—Nothing in this sub7 chapter modifies the terms of the Russian HEU Agree8 ment. 

9 ‘‘(f) SERVICES.—Notwithstanding any other provi10 sion of this section, if the Secretary determines that the 

11 Corporation has failed, or may fail, to perform any obliga12 tion under the Agreement between the Department of En13 ergy and the Corporation dated June 17, 2002, and as 

14 amended thereafter, which failure could result in termi15 nation of the Agreement, the Secretary shall notify Con16 gress, in such a manner that affords Congress an oppor17 tunity to comment, prior to a determination by the Sec18 retary whether termination, waiver, or modification of the 

19 Agreement is required. The Secretary is authorized to take 

20 such action as he determines necessary under the Agree21 ment to terminate, waive, or modify provisions of the 

22 Agreement to achieve its purposes.’’. 

23 (b) REPORT.—Not later than 3 years after the date 

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

25 report to Congress on the implementation of this section. 
217

•HR 1640 IH 

1 The report shall include a discussion of available excess 

2 uranium inventories; all sales or transfers made by the 

3 United States Government; the impact of such sales or 

4 transfers on the domestic uranium industry, the spot mar5 ket uranium price, and the national security interests of 

6 the United States; and any steps taken to remediate any 

7 adverse impacts of such sales or transfers. 

8 SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT 

9 AND SPECIAL DEMONSTRATION PROJECTS 

10 FOR THE URANIUM MINING INDUSTRY. 

11 (a) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary of En13 ergy $10,000,000 for each of fiscal years 2006, 2007, and 

14 2008 for—

15 (1) cooperative, cost-shared agreements between 

16 the Department of Energy and domestic uranium 

17 producers to identify, test, and develop improved in 

18 situ leaching mining technologies, including low-cost 

19 environmental restoration technologies that may be 

20 applied to sites after completion of in situ leaching 

21 operations; and 

22 (2) funding for competitively selected dem23 onstration projects with domestic uranium producers 

24 relating to—
218

•HR 1640 IH 

1 (A) enhanced production with minimal en2 vironmental impacts; 

3 (B) restoration of well fields; and 

4 (C) decommissioning and decontamination 

5 activities. 

6 (b) DOMESTIC URANIUM PRODUCER.—For purposes 

7 of this section, the term ‘‘domestic uranium producer’’ has 

8 the meaning given that term in section 1018(4) of the En9 ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except 

10 that the term shall not include any producer that has not 

11 produced uranium from domestic reserves on or after July 

12 30, 1998. 

13 (c) LIMITATION.—No activities funded under this 

14 section may be carried out in the State of New Mexico. 

15 SEC. 632. WHISTLEBLOWER PROTECTION. 

16 (a) DEFINITION OF EMPLOYER.—Section 211(a)(2) 

17 of the Energy Reorganization Act of 1974 (42 U.S.C. 

18 5851(a)(2)) is amended—

19 (1) in subparagraph (C), by striking ‘‘and’’ at 

20 the end; 

21 (2) in subparagraph (D), by striking the period 

22 at the end and inserting ‘‘; and’’ and 

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

24 ‘‘(E) a contractor or subcontractor of the 

25 Commission.’’. 
219

•HR 1640 IH 

1 (b) DE NOVO REVIEW.—Subsection (b) of such sec2 tion 211 is amended by adding at the end the following 

3 new paragraph: 

4 ‘‘(4) If the Secretary has not issued a final de5 cision within 540 days after the filing of a complaint 

6 under paragraph (1), and there is no showing that 

7 such delay is due to the bad faith of the person 

8 seeking relief under this paragraph, such person 

9 may bring an action at law or equity for de novo re10 view in the appropriate district court of the United 

11 States, which shall have jurisdiction over such an ac12 tion without regard to the amount in controversy.’’. 

13 SEC. 633. MEDICAL ISOTOPE PRODUCTION. 

14 Section 134 of the Atomic Energy Act of 1954 (42 

15 U.S.C. 2160d) is amended—

16 (1) in subsection a., by striking ‘‘a. The Com17 mission’’ and inserting ‘‘a. IN GENERAL.—Except as 

18 provided in subsection b., the Commission’’; 

19 (2) by redesignating subsection b. as subsection 

20 c.; and 

21 (3) by inserting after subsection a. the fol22 lowing: 

23 ‘‘b. MEDICAL ISOTOPE PRODUCTION.—

24 ‘‘(1) DEFINITIONS.—In this subsection: 
220

•HR 1640 IH 

1 ‘‘(A) HIGHLY ENRICHED URANIUM.—The 

2 term ‘highly enriched uranium’ means uranium 

3 enriched to include concentration of U–235 

4 above 20 percent. 

5 ‘‘(B) MEDICAL ISOTOPE.—The term ‘med6 ical isotope’ includes Molybdenum 99, Iodine 

7 131, Xenon 133, and other radioactive mate8 rials used to produce a radiopharmaceutical for 

9 diagnostic, therapeutic procedures or for re10 search and development. 

11 ‘‘(C) RADIOPHARMACEUTICAL.—The term 

12 ‘radiopharmaceutical’ means a radioactive iso13 tope that—

14 ‘‘(i) contains byproduct material com15 bined with chemical or biological material; 

16 and 

17 ‘‘(ii) is designed to accumulate tempo18 rarily in a part of the body for therapeutic 

19 purposes or for enabling the production of 

20 a useful image for use in a diagnosis of a 

21 medical condition. 

22 ‘‘(D) RECIPIENT COUNTRY.—The term ‘re23 cipient country’ means Canada, Belgium, 

24 France, Germany, and the Netherlands. 
221

•HR 1640 IH 

1 ‘‘(2) LICENSES.—The Commission may issue a 

2 license authorizing the export (including shipment to 

3 and use at intermediate and ultimate consignees 

4 specified in the license) to a recipient country of 

5 highly enriched uranium for medical isotope produc6 tion if, in addition to any other requirements of this 

7 Act (except subsection a.), the Commission deter8 mines that—

9 ‘‘(A) a recipient country that supplies an 

10 assurance letter to the United States Govern11 ment in connection with the consideration by 

12 the Commission of the export license applica13 tion has informed the United States Govern14 ment that any intermediate consignees and the 

15 ultimate consignee specified in the application 

16 are required to use the highly enriched uranium 

17 solely to produce medical isotopes; and 

18 ‘‘(B) the highly enriched uranium for med19 ical isotope production will be irradiated only in 

20 a reactor in a recipient country that—

21 ‘‘(i) uses an alternative nuclear reac22 tor fuel; or 

23 ‘‘(ii) is the subject of an agreement 

24 with the United States Government to con25 vert to an alternative nuclear reactor fuel 
222

•HR 1640 IH 

1 when alternative nuclear reactor fuel can 

2 be used in the reactor. 

3 ‘‘(3) REVIEW OF PHYSICAL PROTECTION RE4 QUIREMENTS.—

5 ‘‘(A) IN GENERAL.—The Commission shall 

6 review the adequacy of physical protection re7 quirements that, as of the date of an applica8 tion under paragraph (2), are applicable to the 

9 transportation and storage of highly enriched 

10 uranium for medical isotope production or con11 trol of residual material after irradiation and 

12 extraction of medical isotopes. 

13 ‘‘(B) IMPOSITION OF ADDITIONAL RE14 QUIREMENTS.—If the Commission determines 

15 that additional physical protection requirements 

16 are necessary (including a limit on the quantity 

17 of highly enriched uranium that may be con18 tained in a single shipment), the Commission 

19 shall impose such requirements as license condi20 tions or through other appropriate means. 

21 ‘‘(4) FIRST REPORT TO CONGRESS.—

22 ‘‘(A) NAS STUDY.—The Secretary shall 

23 enter into an arrangement with the National 

24 Academy of Sciences to conduct a study to de25 termine—
223

•HR 1640 IH 

1 ‘‘(i) the feasibility of procuring sup2 plies of medical isotopes from commercial 

3 sources that do not use highly enriched 

4 uranium; 

5 ‘‘(ii) the current and projected de6 mand and availability of medical isotopes 

7 in regular current domestic use; 

8 ‘‘(iii) the progress that is being made 

9 by the Department of Energy and others 

10 to eliminate all use of highly enriched ura11 nium in reactor fuel, reactor targets, and 

12 medical isotope production facilities; and 

13 ‘‘(iv) the potential cost differential in 

14 medical isotope production in the reactors 

15 and target processing facilities if the prod16 ucts were derived from production systems 

17 that do not involve fuels and targets with 

18 highly enriched uranium. 

19 ‘‘(B) FEASIBILITY.—For the purpose of 

20 this subsection, the use of low enriched uranium 

21 to produce medical isotopes shall be determined 

22 to be feasible if—

23 ‘‘(i) low enriched uranium targets 

24 have been developed and demonstrated for 

25 use in the reactors and target processing 
224

•HR 1640 IH 

1 facilities that produce significant quantities 

2 of medical isotopes to serve United States 

3 needs for such isotopes; 

4 ‘‘(ii) sufficient quantities of medical 

5 isotopes are available from low enriched 

6 uranium targets and fuel to meet United 

7 States domestic needs; and 

8 ‘‘(iii) the average anticipated total 

9 cost increase from production of medical 

10 isotopes in such facilities without use of 

11 highly enriched uranium is less than 10 

12 percent. 

13 ‘‘(C) REPORT BY THE SECRETARY.—Not 

14 later than 5 years after the date of enactment 

15 of the Energy Policy Act of 2005, the Secretary 

16 shall submit to Congress a report that—

17 ‘‘(i) contains the findings of the Na18 tional Academy of Sciences made in the 

19 study under subparagraph (A); and 

20 ‘‘(ii) discloses the existence of any 

21 commitments from commercial producers 

22 to provide domestic requirements for med23 ical isotopes without use of highly enriched 

24 uranium consistent with the feasibility cri25 teria described in subparagraph (B) not 
225

•HR 1640 IH 

1 later than the date that is 4 years after 

2 the date of submission of the report. 

3 ‘‘(5) SECOND REPORT TO CONGRESS.—If the 

4 study of the National Academy of Sciences deter5 mines under paragraph (4)(A)(i) that the procure6 ment of supplies of medical isotopes from commer7 cial sources that do not use highly enriched uranium 

8 is feasible, but the Secretary is unable to report the 

9 existence of commitments under paragraph 

10 (4)(C)(ii), not later than the date that is 6 years 

11 after the date of enactment of the Energy Policy Act 

12 of 2005, the Secretary shall submit to Congress a 

13 report that describes options for developing domestic 

14 supplies of medical isotopes in quantities that are 

15 adequate to meet domestic demand without the use 

16 of highly enriched uranium consistent with the cost 

17 increase described in paragraph (4)(B)(iii). 

18 ‘‘(6) CERTIFICATION.—At such time as com19 mercial facilities that do not use highly enriched 

20 uranium are capable of meeting domestic require21 ments for medical isotopes, within the cost increase 

22 described in paragraph (4)(B)(iii) and without im23 pairing the reliable supply of medical isotopes for 

24 domestic utilization, the Secretary shall submit to 

25 Congress a certification to that effect. 
226

•HR 1640 IH 

1 ‘‘(7) SUNSET PROVISION.—After the Secretary 

2 submits a certification under paragraph (6), the 

3 Commission shall, by rule, terminate its review of 

4 export license applications under this subsection.’’. 

5 SEC. 634. FERNALD BYPRODUCT MATERIAL. 

6 Title III of the Nuclear Waste Policy Act of 1982 

7 (42 U.S.C. 10221 et seq.) is amended by adding at the 

8 end the following new section: 

9 ‘‘FERNALD BYPRODUCT MATERIAL

10 ‘‘SEC. 307. Notwithstanding any other law, the mate11 rial in the concrete silos at the Fernald uranium proc12 essing facility managed on the date of enactment of this 

13 section by the Department shall be considered byproduct 

14 material (as defined by section 11 e.(2) of the Atomic En15 ergy Act of 1954 (42 U.S.C. 2014(e)(2))). The Depart16 ment may dispose of the material in a facility regulated 

17 by the Commission or by an Agreement State. If the De18 partment disposes of the material in such a facility, the 

19 Commission or the Agreement State shall regulate the ma20 terial as byproduct material under that Act. This material 

21 shall remain subject to the jurisdiction of the Department 

22 until it is received at a commercial, Commission-licensed, 

23 or Agreement State-licensed facility, at which time the 

24 material shall be subject to the health and safety require25 ments of the Commission or the Agreement State with ju26 risdiction over the disposal site.’’. 
227

•HR 1640 IH 

1 SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA2 DIOACTIVE WASTE. 

3 Subtitle D of title I of the Nuclear Waste Policy Act 

4 of 1982 (42 U.S.C. 10171) is amended by adding at the 

5 end the following new section: 

6 ‘‘SAFE DISPOSAL OF GREATER-THAN-CLASS C

7 RADIOACTIVE WASTE

8 ‘‘SEC. 152. (a) DESIGNATION OF RESPONSIBILITY.—

9 The Secretary shall designate an Office within the Depart10 ment to have the responsibility for activities needed to de11 velop a new, or use an existing, facility for safely disposing 

12 of all low-level radioactive waste with concentrations of 

13 radionuclides that exceed the limits established by the 

14 Commission for Class C radioactive waste (referred to in 

15 this section as ‘GTCC waste’). 

16 ‘‘(b) COMPREHENSIVE PLAN.—The Secretary shall 

17 develop a comprehensive plan for permanent disposal of 

18 GTCC waste which includes plans for a disposal facility. 

19 This plan shall be transmitted to Congress in a series of 

20 reports, including the following: 

21 ‘‘(1) REPORT ON SHORT-TERM PLAN.—Not 

22 later than 180 days after the date of enactment of 

23 this section, the Secretary shall submit to Congress 

24 a plan describing the Secretary’s operational strat25 egy for continued recovery and storage of GTCC 

26 waste until a permanent disposal facility is available. 
228

•HR 1640 IH 

1 ‘‘(2) UPDATE OF 1987 REPORT.—

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

3 after the date of enactment of this section, the 

4 Secretary shall submit to Congress an update of 

5 the Secretary’s February 1987 report submitted 

6 to Congress that made comprehensive rec7 ommendations for the disposal of GTCC waste. 

8 ‘‘(B) CONTENTS.—The update under this 

9 paragraph shall contain—

10 ‘‘(i) a detailed description and identi11 fication of the GTCC waste that is to be 

12 disposed; 

13 ‘‘(ii) a description of current domestic 

14 and international programs, both Federal 

15 and commercial, for management and dis16 position of GTCC waste; 

17 ‘‘(iii) an identification of the Federal 

18 and private options and costs for the safe 

19 disposal of GTCC waste; 

20 ‘‘(iv) an identification of the options 

21 for ensuring that, wherever possible, gen22 erators and users of GTCC waste bear all 

23 reasonable costs of waste disposal; 
229

•HR 1640 IH 

1 ‘‘(v) an identification of any new stat2 utory authority required for disposal of 

3 GTCC waste; and 

4 ‘‘(vi) in coordination with the Envi5 ronmental Protection Agency and the Com6 mission, an identification of any new regu7 latory guidance needed for the disposal of 

8 GTCC waste. 

9 ‘‘(3) REPORT ON COST AND SCHEDULE FOR

10 COMPLETION OF ENVIRONMENTAL IMPACT STATE11 MENT AND RECORD OF DECISION.—Not later than 

12 180 days after the date of submission of the update 

13 required under paragraph (2), the Secretary shall 

14 submit to Congress a report containing an estimate 

15 of the cost and schedule to complete a draft and 

16 final environmental impact statement and to issue a 

17 record of decision for a permanent disposal facility, 

18 utilizing either a new or existing facility, for GTCC 

19 waste.’’. 

20 SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN21 TRIES THAT SPONSOR TERRORISM. 

22 (a) IN GENERAL.—Section 129 of the Atomic Energy 

23 Act of 1954 (42 U.S.C. 2158) is amended—

24 (1) by inserting ‘‘a.’’ before ‘‘No nuclear mate25 rials and equipment’’; and 
230

•HR 1640 IH 

1 (2) by adding at the end the following new sub2 section: 

3 ‘‘b.(1) Notwithstanding any other provision of law, 

4 including specifically section 121 of this Act, and except 

5 as provided in paragraphs (2) and (3), no nuclear mate6 rials and equipment or sensitive nuclear technology, in7 cluding items and assistance authorized by section 57 b. 

8 of this Act and regulated under part 810 of title 10, Code 

9 of Federal Regulations, and nuclear-related items on the 

10 Commerce Control List maintained under part 774 of title 

11 15 of the Code of Federal Regulations, shall be exported 

12 or reexported, or transferred or retransferred whether di13 rectly or indirectly, and no Federal agency shall issue any 

14 license, approval, or authorization for the export or reex15 port, or transfer, or retransfer, whether directly or indi16 rectly, of these items or assistance (as defined in this para17 graph) to any country whose government has been identi18 fied by the Secretary of State as engaged in state sponsor19 ship of terrorist activities (specifically including any coun20 try the government of which has been determined by the 

21 Secretary of State under section 620A(a) of the Foreign 

22 Assistance Act of 1961 (22 U.S.C. 2371(a)), section 

23 6(j)(1) of the Export Administration Act of 1979 (50 

24 U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex-
231

•HR 1640 IH 

1 port Control Act (22 U.S.C. 2780(d)) to have repeatedly 

2 provided support for acts of international terrorism). 

3 ‘‘(2) This subsection shall not apply to exports, reex4 ports, transfers, or retransfers of radiation monitoring 

5 technologies, surveillance equipment, seals, cameras, tam6 per-indication devices, nuclear detectors, monitoring sys7 tems, or equipment necessary to safely store, transport, 

8 or remove hazardous materials, whether such items, serv9 ices, or information are regulated by the Department of 

10 Energy, the Department of Commerce, or the Nuclear 

11 Regulatory Commission, except to the extent that such 

12 technologies, equipment, seals, cameras, devices, detectors, 

13 or systems are available for use in the design or construc14 tion of nuclear reactors or nuclear weapons. 

15 ‘‘(3) The President may waive the application of 

16 paragraph (1) to a country if the President determines 

17 and certifies to Congress that the waiver will not result 

18 in any increased risk that the country receiving the waiver 

19 will acquire nuclear weapons, nuclear reactors, or any ma20 terials or components of nuclear weapons and—

21 ‘‘(A) the government of such country has not 

22 within the preceding 12-month period willfully aided 

23 or abetted the international proliferation of nuclear 

24 explosive devices to individuals or groups or willfully 
232

•HR 1640 IH 

1 aided and abetted an individual or groups in acquir2 ing unsafeguarded nuclear materials; 

3 ‘‘(B) in the judgment of the President, the gov4 ernment of such country has provided adequate, 

5 verifiable assurances that it will cease its support for 

6 acts of international terrorism; 

7 ‘‘(C) the waiver of that paragraph is in the vital 

8 national security interest of the United States; or 

9 ‘‘(D) such a waiver is essential to prevent or re10 spond to a serious radiological hazard in the country 

11 receiving the waiver that may or does threaten pub12 lic health and safety.’’. 

13 (b) APPLICABILITY TO EXPORTS APPROVED FOR

14 TRANSFER BUT NOT TRANSFERRED.—Subsection b. of 

15 section 129 of Atomic Energy Act of 1954, as added by 

16 subsection (a) of this section, shall apply with respect to 

17 exports that have been approved for transfer as of the date 

18 of the enactment of this Act but have not yet been trans19 ferred as of that date. 

20 SEC. 638. NATIONAL URANIUM STOCKPILE. 

21 The USEC Privatization Act (42 U.S.C. 2297h et 

22 seq.) is amended by adding at the end the following new 

23 section: 
233

•HR 1640 IH 

1 ‘‘SEC. 3118. NATIONAL URANIUM STOCKPILE. 

2 ‘‘(a) STOCKPILE CREATION.—The Secretary of En3 ergy may create a national low-enriched uranium stockpile 

4 with the goals to—

5 ‘‘(1) enhance national energy security; and 

6 ‘‘(2) reduce global proliferation threats. 

7 ‘‘(b) SOURCE OF MATERIAL.—The Secretary shall 

8 obtain material for the stockpile from—

9 ‘‘(1) material derived from blend-down of Rus10 sian highly enriched uranium derived from weapons 

11 materials; and 

12 ‘‘(2) domestically mined and enriched uranium. 

13 ‘‘(c) LIMITATION ON SALES OR TRANSFERS.—Sales 

14 or transfer of materials in the stockpile shall occur pursu15 ant to section 3112.’’. 

16 SEC. 639. NUCLEAR REGULATORY COMMISSION MEETINGS. 

17 If a quorum of the Nuclear Regulatory Commission 

18 gathers to discuss official Commission business the discus19 sions shall be recorded, and the Commission shall notify 

20 the public of such discussions within 15 days after they 

21 occur. The Commission shall promptly make a transcript 

22 of the recording available to the public on request, except 

23 to the extent that public disclosure is exempted or prohib24 ited by law. This section shall not apply to a meeting, 

25 within the meaning of that term under section 552b(a)(2) 

26 of title 5, United States Code. 
234

•HR 1640 IH 

1 SEC. 640. EMPLOYEE BENEFITS. 

2 Section 3110 of the USEC Privatization Act (42 

3 U.S.C. 2297h-8(a)) is amended by adding at the end the 

4 following new paragraph: 

5 ‘‘(8) CONTINUITY OF BENEFITS.—Not later than 30 

6 days after the date of enactment of this paragraph, the 

7 Secretary shall implement such actions as are necessary 

8 to ensure that any employee who—

9 ‘‘(A) is involved in providing infrastructure or 

10 environmental remediation services at the Ports11 mouth, Ohio, or the Paducah, Kentucky, Gaseous 

12 Diffusion Plant; 

13 ‘‘(B) has been an employee of the Department 

14 of Energy’s predecessor management and inte15 grating contractor (or its first or second tier sub16 contractors), or of the Corporation, at the Ports17 mouth, Ohio, or the Paducah, Kentucky, facility; 

18 and 

19 ‘‘(C) was eligible as of April 1, 2005, to partici20 pate in or transfer into the Multiple Employer Pen21 sion Plan or the associated multiple employer retiree 

22 health care benefit plans, as defined in those plans, 

23 shall continue to be eligible to participate in or transfer 

24 into such pension or health care benefit plans.’’. 
235

•HR 1640 IH 

1 Subtitle C—Additional Hydrogen 

2 Production Provisions 

3 SEC. 651. HYDROGEN PRODUCTION PROGRAMS. 

4 (a) ADVANCED REACTOR HYDROGEN COGENERA5 TION PROJECT.—

6 (1) PROJECT ESTABLISHMENT.— The Sec7 retary is directed to establish an Advanced Reactor 

8 Hydrogen Cogeneration Project. 

9 (2) PROJECT DEFINITION.— The project shall 

10 consist of the research, development, design, con11 struction, and operation of a hydrogen production 

12 cogeneration research facility that, relative to the 

13 current commercial reactors, enhances safety fea14 tures, reduces waste production, enhances thermal 

15 efficiencies, increases proliferation resistance, and 

16 has the potential for improved economics and phys17 ical security in reactor siting. This facility shall be 

18 constructed so as to enable research and develop19 ment on advanced reactors of the type selected and 

20 on alternative approaches for reactor-based produc21 tion of hydrogen. 

22 (3) PROJECT MANAGEMENT.—

23 (A) MANAGEMENT.—The project shall be 

24 managed within the Department by the Office 

25 of Nuclear Energy, Science, and Technology. 
236

•HR 1640 IH 

1 (B) LEAD LABORATORY.—The lead labora2 tory for the project, providing the site for the 

3 reactor construction, shall be the Idaho Na4 tional Laboratory (in this subsection referred to 

5 as ‘‘INL’’). 

6 (C) STEERING COMMITTEE.—The Sec7 retary shall establish a national steering com8 mittee with membership from the national lab9 oratories, universities, and industry to provide 

10 advice to the Secretary and the Director of the 

11 Office of Nuclear Energy, Science, and Tech12 nology on technical and program management 

13 aspects of the project. 

14 (D) COLLABORATION.—Project activities 

15 shall be conducted at INL, other national lab16 oratories, universities, domestic industry, and 

17 international partners. 

18 (4) PROJECT REQUIREMENTS.—

19 (A) RESEARCH AND DEVELOPMENT.—

20 (i) IN GENERAL.—The project shall 

21 include planning, research and develop22 ment, design, and construction of an ad23 vanced, next-generation, nuclear energy 

24 system suitable for enabling further re25 search and development on advanced reac-
237

•HR 1640 IH 

1 tor technologies and alternative approaches 

2 for reactor-based generation of hydrogen. 

3 (ii) REACTOR TEST CAPABILITIES AT

4 INL.—The project shall utilize, where ap5 propriate, extensive reactor test capabilities 

6 resident at INL. 

7 (iii) ALTERNATIVES.—The project 

8 shall be designed to explore technical, envi9 ronmental, and economic feasibility of al10 ternative approaches for reactor-based hy11 drogen production. 

12 (iv) INDUSTRIAL LEAD.—The indus13 trial lead for the project shall be a com14 pany incorporated in the United States. 

15 (B) INTERNATIONAL COLLABORATION.—

16 (i) IN GENERAL.—The Secretary shall 

17 seek international cooperation, participa18 tion, and financial contribution in this 

19 project. 

20 (ii) ASSISTANCE FROM INTER21 NATIONAL PARTNERS.—The Secretary may 

22 contract for assistance from specialists or 

23 facilities from member countries of the 

24 Generation IV International Forum, the 

25 Russian Federation, or other international 
238

•HR 1640 IH 

1 partners where such specialists or facilities 

2 provide access to cost-effective and relevant 

3 skills or test capabilities. 

4 (iii) GENERATION IV INTERNATIONAL

5 FORUM.—International activities shall be 

6 coordinated with the Generation IV Inter7 national Forum. 

8 (iv) GENERATION IV NUCLEAR EN9 ERGY SYSTEMS PROGRAM.—The Secretary 

10 may combine this project with the Genera11 tion IV Nuclear Energy Systems Program. 

12 (C) DEMONSTRATION.—The overall 

13 project, which may involve demonstration of se14 lected project objectives in a partner nation, 

15 must demonstrate both electricity and hydrogen 

16 production and may provide flexibility, where 

17 technically and economically feasible in the de18 sign and construction, to enable tests of alter19 native reactor core and cooling configurations. 

20 (D) PARTNERSHIPS.—The Secretary shall 

21 establish cost-shared partnerships with domestic 

22 industry or international participants for the re23 search, development, design, construction, and 

24 operation of the research facility, and pref25 erence in determining the final project structure 
239

•HR 1640 IH 

1 shall be given to an overall project which re2 tains United States leadership while maximizing 

3 cost sharing opportunities and minimizing Fed4 eral funding responsibilities. 

5 (E) TARGET DATE.—The Secretary shall 

6 select technologies and develop the project to 

7 provide initial testing of either hydrogen pro8 duction or electricity generation by 2011, or 

9 provide a report to Congress explaining why 

10 this date is not feasible. 

11 (F) WAIVER OF CONSTRUCTION

12 TIMELINES.—The Secretary is authorized to 

13 conduct the Advanced Reactor Hydrogen Co14 generation Project without the constraints of 

15 DOE Order 413.3, relating to program and 

16 project management for the acquisition of cap17 ital assets, as necessary to meet the specified 

18 operational date. 

19 (G) COMPETITION.—The Secretary may 

20 fund up to 2 teams for up to 1 year to develop 

21 detailed proposals for competitive evaluation 

22 and selection of a single proposal and concept 

23 for further progress. The Secretary shall define 

24 the format of the competitive evaluation of pro25 posals. 
240

•HR 1640 IH 

1 (H) USE OF FACILITIES.—Research facili2 ties in industry, national laboratories, or univer3 sities either within the United States or with 

4 cooperating international partners may be used 

5 to develop the enabling technologies for the re6 search facility. Utilization of domestic univer7 sity-based facilities shall be encouraged to pro8 vide educational opportunities for student devel9 opment. 

10 (I) ROLE OF NUCLEAR REGULATORY COM11 MISSION.—

12 (i) IN GENERAL.—The Nuclear Regu13 latory Commission shall have licensing and 

14 regulatory authority for any reactor au15 thorized under this subsection, pursuant to 

16 section 202 of the Energy Reorganization 

17 Act of 1974 (42 U.S.C. 5842). 

18 (ii) RISK-BASED CRITERIA.—The Sec19 retary shall seek active participation of the 

20 Nuclear Regulatory Commission through21 out the project to develop risk-based cri22 teria for any future commercial develop23 ment of a similar reactor architecture. 

24 (J) REPORT.—The Secretary shall develop 

25 and transmit to Congress a comprehensive 
241

•HR 1640 IH 

1 project plan not later than 3 months after the 

2 date of enactment of this Act. The project plan 

3 shall be updated annually with each annual 

4 budget submission. 

5 (b) ADVANCED NUCLEAR REACTOR TECH6 NOLOGIES.—The Secretary shall—

7 (1) prepare a detailed roadmap for carrying out 

8 the provisions in this subtitle related to advanced 

9 nuclear reactor technologies and for implementing 

10 the recommendations related to advanced nuclear re11 actor technologies that are included in the report 

12 transmitted under subsection (d); and 

13 (2) provide for the establishment of 5 projects 

14 in geographic areas that are regionally and climati15 cally diverse to demonstrate the commercial produc16 tion of hydrogen at existing nuclear power plants, 

17 including one demonstration project at a national 

18 laboratory or institution of higher education using 

19 an advanced gas-cooled reactor. 

20 (c) COLLOCATION WITH HYDROGEN PRODUCTION

21 FACILITY.—Section 103 of the Atomic Energy Act of 

22 1954 (42 U.S.C. 2011) is amended by adding at the end 

23 the following new subsection: 

24 ‘‘g. The Commission shall give priority to the licens25 ing of a utilization facility that is collocated with a hydro-
242

•HR 1640 IH 

1 gen production facility. The Commission shall issue a final 

2 decision approving or disapproving the issuance of a li3 cense to construct and operate a utilization facility not 

4 later than the expiration of 3 years after the date of the 

5 submission of such application, if the application ref6 erences a Commission-certified design and an early site 

7 permit, unless the Commission determines that the appli8 cant has proposed material and substantial changes to the 

9 design or the site design parameters.’’. 

10 (d) REPORT.—The Secretary shall transmit to the 

11 Congress not later than 120 days after the date of enact12 ment of this Act a report containing detailed summaries 

13 of the roadmaps prepared under subsection (b)(1), de14 scriptions of the Secretary’s progress in establishing the 

15 projects and other programs required under this section, 

16 and recommendations for promoting the availability of ad17 vanced nuclear reactor energy technologies for the produc18 tion of hydrogen. 

19 (e) AUTHORIZATION OF APPROPRIATIONS.—For the 

20 purpose of supporting research programs related to the 

21 development of advanced nuclear reactor technologies 

22 under this section, there are authorized to be appropriated 

23 to the Secretary—

24 (1) $65,000,000 for fiscal year 2006; 

25 (2) $74,750,000 for fiscal year 2007; 
243

•HR 1640 IH 

1 (3) $85,962,500 for fiscal year 2008; 

2 (4) $98,856,875 for fiscal year 2009; 

3 (5) $113,685,406 for fiscal year 2010; 

4 (6) $130,738,217 for fiscal year 2011; 

5 (7) $150,348,950 for fiscal year 2012; 

6 (8) $172,901,292 for fiscal year 2013; 

7 (9) $198,836,486 for fiscal year 2014; and 

8 (10) $228,661,959 for fiscal year 2015. 

9 SEC. 652. DEFINITIONS. 

10 For purposes of this subtitle—

11 (1) the term ‘‘advanced nuclear reactor tech12 nologies’’ means—

13 (A) technologies related to advanced light 

14 water reactors that may be commercially avail15 able in the near-term, including mid-sized reac16 tors with passive safety features, for the gen17 eration of electric power from nuclear fission 

18 and the production of hydrogen; and 

19 (B) technologies related to other nuclear 

20 reactors that may require prototype demonstra21 tion prior to availability in the mid-term or 

22 long-term, including high-temperature, gas23 cooled reactors and liquid metal reactors, for 

24 the generation of electric power from nuclear 

25 fission and the production of hydrogen; 
244

•HR 1640 IH 

1 (2) the term ‘‘institution of higher education’’ 

2 has the meaning given to that term in section 

3 101(a) of the Higher Education Act of 1965 (20 

4 U.S.C. 1001(a)); and 

5 (3) the term ‘‘Secretary’’ means the Secretary 

6 of Energy. 

7 Subtitle D—Nuclear Security 

8 SEC. 661. NUCLEAR FACILITY THREATS. 

9 (a) STUDY.—The President, in consultation with the 

10 Nuclear Regulatory Commission (referred to in this sub11 title as the ‘‘Commission’’) and other appropriate Federal, 

12 State, and local agencies and private entities, shall con13 duct a study to identify the types of threats that pose an 

14 appreciable risk to the security of the various classes of 

15 facilities licensed by the Commission under the Atomic 

16 Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study 

17 shall take into account, but not be limited to—

18 (1) the events of September 11, 2001; 

19 (2) an assessment of physical, cyber, bio20 chemical, and other terrorist threats; 

21 (3) the potential for attack on facilities by mul22 tiple coordinated teams of a large number of individ23 uals; 

24 (4) the potential for assistance in an attack 

25 from several persons employed at the facility; 
245

•HR 1640 IH 

1 (5) the potential for suicide attacks; 

2 (6) the potential for water-based and air-based 

3 threats; 

4 (7) the potential use of explosive devices of con5 siderable size and other modern weaponry; 

6 (8) the potential for attacks by persons with a 

7 sophisticated knowledge of facility operations; 

8 (9) the potential for fires, especially fires of 

9 long duration; 

10 (10) the potential for attacks on spent fuel 

11 shipments by multiple coordinated teams of a large 

12 number of individuals; 

13 (11) the adequacy of planning to protect the 

14 public health and safety at and around nuclear fa15 cilities, as appropriate, in the event of a terrorist at16 tack against a nuclear facility; and 

17 (12) the potential for theft and diversion of nu18 clear materials from such facilities. 

19 (b) SUMMARY AND CLASSIFICATION REPORT.—Not 

20 later than 180 days after the date of the enactment of 

21 this Act, the President shall transmit to Congress and the 

22 Commission a report—

23 (1) summarizing the types of threats identified 

24 under subsection (a); and 
246

•HR 1640 IH 

1 (2) classifying each type of threat identified 

2 under subsection (a), in accordance with existing 

3 laws and regulations, as either—

4 (A) involving attacks and destructive acts, 

5 including sabotage, directed against the facility 

6 by an enemy of the United States, whether a 

7 foreign government or other person, or other8 wise falling under the responsibilities of the 

9 Federal Government; or 

10 (B) involving the type of risks that Com11 mission licensees should be responsible for 

12 guarding against. 

13 (c) FEDERAL ACTION REPORT.—Not later than 90 

14 days after the date on which a report is transmitted under 

15 subsection (b), the President shall transmit to Congress 

16 a report on actions taken, or to be taken, to address the 

17 types of threats identified under subsection (b)(2)(A), in18 cluding identification of the Federal, State, and local 

19 agencies responsible for carrying out the obligations and 

20 authorities of the United States. Such report may include 

21 a classified annex, as appropriate. 

22 (d) REGULATIONS.—Not later than 180 days after 

23 the date on which a report is transmitted under subsection 

24 (b), the Commission may revise, by rule, the design basis 

25 threats issued before the date of enactment of this section 
247

•HR 1640 IH 

1 as the Commission considers appropriate based on the 

2 summary and classification report. 

3 (e) PHYSICAL SECURITY PROGRAM.—The Commis4 sion shall establish an operational safeguards response 

5 evaluation program that ensures that the physical protec6 tion capability and operational safeguards response for 

7 sensitive nuclear facilities, as determined by the Commis8 sion consistent with the protection of public health and 

9 the common defense and security, shall be tested periodi10 cally through Commission approved or designed, observed, 

11 and evaluated force-on-force exercises to determine wheth12 er the ability to defeat the design basis threat is being 

13 maintained. For purposes of this subsection, the term 

14 ‘‘sensitive nuclear facilities’’ includes at a minimum com15 mercial nuclear power plants and category I fuel cycle fa16 cilities. 

17 (f) CONTROL OF INFORMATION.—Notwithstanding 

18 any other provision of law, the Commission may undertake 

19 any rulemaking under this subtitle in a manner that will 

20 fully protect safeguards and classified national security in21 formation. 

22 (g) FEDERAL SECURITY COORDINATORS.—

23 (1) REGIONAL OFFICES.—Not later than 18 

24 months after the date of enactment of this Act, the 

25 Commission shall assign a Federal security coordi-
248

•HR 1640 IH 

1 nator, under the employment of the Commission, to 

2 each region of the Commission. 

3 (2) RESPONSIBILITIES.—The Federal security 

4 coordinator shall be responsible for—

5 (A) communicating with the Commission 

6 and other Federal, State, and local authorities 

7 concerning threats, including threats against 

8 such classes of facilities as the Commission de9 termines to be appropriate; 

10 (B) ensuring that such classes of facilities 

11 as the Commission determines to be appropriate 

12 maintain security consistent with the security 

13 plan in accordance with the appropriate threat 

14 level; and 

15 (C) assisting in the coordination of secu16 rity measures among the private security forces 

17 at such classes of facilities as the Commission 

18 determines to be appropriate and Federal, 

19 State, and local authorities, as appropriate. 

20 (h) TRAINING PROGRAM.—The President shall estab21 lish a program to provide technical assistance and training 

22 to Federal agencies, the National Guard, and State and 

23 local law enforcement and emergency response agencies in 

24 responding to threats against a designated nuclear facility. 
249

•HR 1640 IH 

1 SEC. 662. FINGERPRINTING FOR CRIMINAL HISTORY 

2 RECORD CHECKS. 

3 (a) IN GENERAL.—Subsection a. of section 149 of 

4 the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is 

5 amended—

6 (1) by striking ‘‘a. The Nuclear’’ and all that 

7 follows through ‘‘section 147.’’ and inserting the fol8 lowing: 

9 ‘‘a. IN GENERAL.—

10 ‘‘(1) REQUIREMENTS.—

11 ‘‘(A) IN GENERAL.—The Commission shall 

12 require each individual or entity—

13 ‘‘(i) that is licensed or certified to en14 gage in an activity subject to regulation by 

15 the Commission; 

16 ‘‘(ii) that has filed an application for 

17 a license or certificate to engage in an ac18 tivity subject to regulation by the Commis19 sion; or 

20 ‘‘(iii) that has notified the Commis21 sion, in writing, of an intent to file an ap22 plication for licensing, certification, permit23 ting, or approval of a product or activity 

24 subject to regulation by the Commission, 

25 to fingerprint each individual described in sub26 paragraph (B) before the individual is per-
250

•HR 1640 IH 

1 mitted unescorted access or access, whichever is 

2 applicable, as described in subparagraph (B). 

3 ‘‘(B) INDIVIDUALS REQUIRED TO BE

4 FINGERPRINTED.—The Commission shall re5 quire to be fingerprinted each individual who—

6 ‘‘(i) is permitted unescorted access 

7 to—

8 ‘‘(I) a utilization facility; or 

9 ‘‘(II) radioactive material or 

10 other property subject to regulation 

11 by the Commission that the Commis12 sion determines to be of such signifi13 cance to the public health and safety 

14 or the common defense and security 

15 as to warrant fingerprinting and back16 ground checks; or 

17 ‘‘(ii) is permitted access to safeguards 

18 information under section 147.’’; 

19 (2) by striking ‘‘All fingerprints obtained by a 

20 licensee or applicant as required in the preceding 

21 sentence’’ and inserting the following: 

22 ‘‘(2) SUBMISSION TO THE ATTORNEY GEN23 ERAL.—All fingerprints obtained by an individual or 

24 entity as required in paragraph (1)’’; 
251

•HR 1640 IH 

1 (3) by striking ‘‘The costs of any identification 

2 and records check conducted pursuant to the pre3 ceding sentence shall be paid by the licensee or ap4 plicant.’’ and inserting the following: 

5 ‘‘(3) COSTS.—The costs of any identification 

6 and records check conducted pursuant to paragraph 

7 (1) shall be paid by the individual or entity required 

8 to conduct the fingerprinting under paragraph 

9 (1)(A).’’; and 

10 (4) by striking ‘‘Notwithstanding any other pro11 vision of law, the Attorney General may provide all 

12 the results of the search to the Commission, and, in 

13 accordance with regulations prescribed under this 

14 section, the Commission may provide such results to 

15 licensee or applicant submitting such fingerprints.’’ 

16 and inserting the following: 

17 ‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE18 QUIRED TO CONDUCT FINGERPRINTING.—Notwith19 standing any other provision of law, the Attorney 

20 General may provide all the results of the search to 

21 the Commission, and, in accordance with regulations 

22 prescribed under this section, the Commission may 

23 provide such results to the individual or entity re24 quired to conduct the fingerprinting under para25 graph (1)(A).’’. 
252

•HR 1640 IH 

1 (b) ADMINISTRATION.—Subsection c. of section 149 

2 of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) 

3 is amended—

4 (1) by striking ‘‘, subject to public notice and 

5 comment, regulations—’’ and inserting ‘‘require6 ments—’’; and 

7 (2) by striking, in paragraph (2)(B), 

8 ‘‘unescorted access to the facility of a licensee or ap9 plicant’’ and inserting ‘‘unescorted access to a utili10 zation facility, radioactive material, or other prop11 erty described in subsection a.(1)(B)’’. 

12 (c) BIOMETRIC METHODS.—Subsection d. of section 

13 149 of the Atomic Energy Act of 1954 (42 U.S.C. 

14 2169(d)) is redesignated as subsection e., and the fol15 lowing is inserted after subsection c.: 

16 ‘‘d. USE OF OTHER BIOMETRIC METHODS.—The 

17 Commission may satisfy any requirement for a person to 

18 conduct fingerprinting under this section using any other 

19 biometric method for identification approved for use by 

20 the Attorney General, after the Commission has approved 

21 the alternative method by rule.’’. 
253

•HR 1640 IH 

1 SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF 

2 LICENSEES AND CERTIFICATE HOLDERS OF 

3 THE COMMISSION. 

4 Section 161 of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2201) is amended by adding at the end the fol6 lowing subsection: 

7 ‘‘(z)(1) notwithstanding section 922(o), (v), and 

8 (w) of title 18, United States Code, or any similar 

9 provision of any State law or any similar rule or reg10 ulation of a State or any political subdivision of a 

11 State prohibiting the transfer or possession of a 

12 handgun, a rifle or shotgun, a short-barreled shot13 gun, a short-barreled rifle, a machinegun, a semi14 automatic assault weapon, ammunition for the fore15 going, or a large capacity ammunition feeding de16 vice, authorize security personnel of licensees and 

17 certificate holders of the Commission (including em18 ployees of contractors of licensees and certificate 

19 holders) to receive, possess, transport, import, and 

20 use 1 or more of those weapons, ammunition, or de21 vices, if the Commission determines that—

22 ‘‘(A) such authorization is necessary to the 

23 discharge of the security personnel’s official du24 ties; and 

25 ‘‘(B) the security personnel—
254

•HR 1640 IH 

1 ‘‘(i) are not otherwise prohibited from 

2 possessing or receiving a firearm under 

3 Federal or State laws pertaining to posses4 sion of firearms by certain categories of 

5 persons; 

6 ‘‘(ii) have successfully completed re7 quirements established through guidelines 

8 implementing this subsection for training 

9 in use of firearms and tactical maneuvers; 

10 ‘‘(iii) are engaged in the protection 

11 of—

12 ‘‘(I) facilities owned or operated 

13 by a Commission licensee or certifi14 cate holder that are designated by the 

15 Commission; or 

16 ‘‘(II) radioactive material or 

17 other property owned or possessed by 

18 a person that is a licensee or certifi19 cate holder of the Commission, or that 

20 is being transported to or from a fa21 cility owned or operated by such a li22 censee or certificate holder, and that 

23 has been determined by the Commis24 sion to be of significance to the com-
255

•HR 1640 IH 

1 mon defense and security or public 

2 health and safety; and 

3 ‘‘(iv) are discharging their official du4 ties. 

5 ‘‘(2) Such receipt, possession, transportation, 

6 importation, or use shall be subject to—

7 ‘‘(A) chapter 44 of title 18, United States 

8 Code, except for section 922(a)(4), (o), (v), and 

9 (w); 

10 ‘‘(B) chapter 53 of title 26, United States 

11 Code, except for section 5844; and 

12 ‘‘(C) a background check by the Attorney 

13 General, based on fingerprints and including a 

14 check of the system established under section 

15 103(b) of the Brady Handgun Violence Preven16 tion Act (18 U.S.C. 922 note) to determine 

17 whether the person applying for the authority is 

18 prohibited from possessing or receiving a fire19 arm under Federal or State law. 

20 ‘‘(3) This subsection shall become effective 

21 upon the issuance of guidelines by the Commission, 

22 with the approval of the Attorney General, to govern 

23 the implementation of this subsection. 

24 ‘‘(4) In this subsection, the terms ‘handgun’, 

25 ‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
256

•HR 1640 IH 

1 gun’, ‘semiautomatic assault weapon’, ‘large capacity 

2 ammunition feeding device’, ‘short-barreled shotgun’, 

3 and ‘short-barreled rifle’ shall have the meanings 

4 given those terms in section 921(a) of title 18, 

5 United States Code.’’. 

6 SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS 

7 WEAPONS. 

8 Section 229 a. of the Atomic Energy Act of 1954 (42 

9 U.S.C. 2278a(a)) is amended in the first sentence by in10 serting ‘‘or subject to the licensing authority of the Com11 mission or to certification by the Commission under this 

12 Act or any other Act’’ before the period at the end. 

13 SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL. 

14 (a) IN GENERAL.—Section 236 a. of the Atomic En15 ergy Act of 1954 (42 U.S.C. 2284(a)) is amended—

16 (1) in paragraph (2), by striking ‘‘storage facil17 ity’’ and inserting ‘‘storage, treatment, or disposal 

18 facility’’; 

19 (2) in paragraph (3)—

20 (A) by striking ‘‘such a utilization facility’’ 

21 and inserting ‘‘a utilization facility licensed 

22 under this Act’’; and 

23 (B) by striking ‘‘or’’ at the end; 

24 (3) in paragraph (4)—
257

•HR 1640 IH 

1 (A) by striking ‘‘facility licensed’’ and in2 serting ‘‘, uranium conversion, or nuclear fuel 

3 fabrication facility licensed or certified’’; and 

4 (B) by striking the comma at the end and 

5 inserting a semicolon; and 

6 (4) by inserting after paragraph (4) the fol7 lowing: 

8 ‘‘(5) any production, utilization, waste storage, 

9 waste treatment, waste disposal, uranium enrich10 ment, uranium conversion, or nuclear fuel fabrica11 tion facility subject to licensing or certification 

12 under this Act during construction of the facility, if 

13 the destruction or damage caused or attempted to be 

14 caused could adversely affect public health and safe15 ty during the operation of the facility; 

16 ‘‘(6) any primary facility or backup facility 

17 from which a radiological emergency preparedness 

18 alert and warning system is activated; or 

19 ‘‘(7) any radioactive material or other property 

20 subject to regulation by the Nuclear Regulatory 

21 Commission that, before the date of the offense, the 

22 Nuclear Regulatory Commission determines, by 

23 order or regulation published in the Federal Reg24 ister, is of significance to the public health and safe25 ty or to common defense and security,’’. 
258

•HR 1640 IH 

1 (b) PENALTIES.—Section 236 of the Atomic Energy 

2 Act of 1954 (42 U.S.C. 2284) is amended by striking 

3 ‘‘$10,000 or imprisoned for not more than 20 years, or 

4 both, and, if death results to any person, shall be impris5 oned for any term of years or for life’’ both places it ap6 pears and inserting ‘‘$1,000,000 or imprisoned for up to 

7 life without parole’’. 

8 SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS. 

9 (a) AMENDMENT.—Chapter 14 of the Atomic Energy 

10 Act of 1954 (42 U.S.C. 2201–2210b) is amended by add11 ing at the end the following new section: 

12 ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 

13 ‘‘a. The Nuclear Regulatory Commission shall estab14 lish a system to ensure that materials described in sub15 section b., when transferred or received in the United 

16 States by any party pursuant to an import or export li17 cense issued pursuant to this Act, are accompanied by a 

18 manifest describing the type and amount of materials 

19 being transferred or received. Each individual receiving or 

20 accompanying the transfer of such materials shall be sub21 ject to a security background check conducted by appro22 priate Federal entities. 

23 ‘‘b. Except as otherwise provided by the Commission 

24 by regulation, the materials referred to in subsection a. 

25 are byproduct materials, source materials, special nuclear 
259

•HR 1640 IH 

1 materials, high-level radioactive waste, spent nuclear fuel, 

2 transuranic waste, and low-level radioactive waste (as de3 fined in section 2(16) of the Nuclear Waste Policy Act 

4 of 1982 (42 U.S.C. 10101(16))).’’. 

5 (b) REGULATIONS.—Not later than 1 year after the 

6 date of the enactment of this Act, and from time to time 

7 thereafter as it considers necessary, the Nuclear Regu8 latory Commission shall issue regulations identifying ra9 dioactive materials or classes of individuals that, con10 sistent with the protection of public health and safety and 

11 the common defense and security, are appropriate excep12 tions to the requirements of section 170C of the Atomic 

13 Energy Act of 1954, as added by subsection (a) of this 

14 section. 

15 (c) EFFECTIVE DATE.—The amendment made by 

16 subsection (a) shall take effect upon the issuance of regu17 lations under subsection (b), except that the background 

18 check requirement shall become effective on a date estab19 lished by the Commission. 

20 (d) EFFECT ON OTHER LAW.—Nothing in this sec21 tion or the amendment made by this section shall waive, 

22 modify, or affect the application of chapter 51 of title 49, 

23 United States Code, part A of subtitle V of title 49, 

24 United States Code, part B of subtitle VI of title 49, 

25 United States Code, and title 23, United States Code. 
260

•HR 1640 IH 

1 (e) TABLE OF SECTIONS AMENDMENT.—The table of 

2 sections for chapter 14 of the Atomic Energy Act of 1954 

3 is amended by adding at the end the following new item:

‘‘Sec. 170C. Secure transfer of nuclear materials.’’.

4 SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON5 SULTATION. 

6 Before issuing a license for a utilization facility, the 

7 Nuclear Regulatory Commission shall consult with the De8 partment of Homeland Security concerning the potential 

9 vulnerabilities of the location of the proposed facility to 

10 terrorist attack. 

11 SEC. 668. AUTHORIZATION OF APPROPRIATIONS. 

12 (a) IN GENERAL.—There are authorized to be appro13 priated such sums as are necessary to carry out this sub14 title and the amendments made by this subtitle. 

15 (b) NUCLEAR REGULATORY COMMISSION USER FEES

16 AND ANNUAL CHARGES.—Section 6101 of the Omnibus 

17 Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is 

18 amended—

19 (1) in subsection (a)—

20 (A) by striking ‘‘Except as provided in 

21 paragraph (3), the’’ and inserting ‘‘The’’ in 

22 paragraph (1); and 

23 (B) by striking paragraph (3); and 

24 (2) in subsection (c)—
261

•HR 1640 IH 

1 (A) by striking ‘‘and’’ at the end of para2 graph (2)(A)(i); 

3 (B) by striking the period at the end of 

4 paragraph (2)(A)(ii) and inserting a semicolon; 

5 (C) by adding at the end of paragraph 

6 (2)(A) the following new clauses: 

7 ‘‘(iii) amounts appropriated to the 

8 Commission for the fiscal year for imple9 mentation of section 3116 of the Ronald 

10 W. Reagan National Defense Authorization 

11 Act for Fiscal Year 2005; and 

12 ‘‘(iv) amounts appropriated to the 

13 Commission for homeland security activi14 ties of the Commission for the fiscal year, 

15 except for the costs of fingerprinting and 

16 background checks required by section 149 

17 of the Atomic Energy Act of 1954 (42 

18 U.S.C. 2169) and the costs of conducting 

19 security inspections.’’; and 

20 (D) by amending paragraph (2)(B)(v) to 

21 read as follows: 

22 ‘‘(v) 90 percent for fiscal year 2005 

23 and each fiscal year thereafter.’’. 
262

•HR 1640 IH 

1 (c) REPEAL.—Section 7601 of the Consolidated Om2 nibus Budget Reconciliation Act of 1985 (42 U.S.C. 2213) 

3 is repealed. 

4 TITLE VII—VEHICLES AND 

5 FUELS 

6 Subtitle A—Existing Programs 

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

8 VEHICLES. 

9 Section 400AA(a)(3)(E) of the Energy Policy and 

10 Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended 

11 to read as follows: 

12 ‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 

13 section shall be operated on alternative fuels unless the 

14 Secretary determines that an agency qualifies for a waiver 

15 of such requirement for vehicles operated by the agency 

16 in a particular geographic area in which—

17 ‘‘(I) the alternative fuel otherwise required to 

18 be used in the vehicle is not reasonably available to 

19 retail purchasers of the fuel, as certified to the Sec20 retary by the head of the agency; or 

21 ‘‘(II) the cost of the alternative fuel otherwise 

22 required to be used in the vehicle is unreasonably 

23 more expensive compared to gasoline, as certified to 

24 the Secretary by the head of the agency. 
263

•HR 1640 IH 

1 ‘‘(ii) The Secretary shall monitor compliance with 

2 this subparagraph by all such fleets and shall report annu3 ally to Congress on the extent to which the requirements 

4 of this subparagraph are being achieved. The report shall 

5 include information on annual reductions achieved from 

6 the use of petroleum-based fuels and the problems, if any, 

7 encountered in acquiring alternative fuels.’’. 

8 SEC. 704. INCREMENTAL COST ALLOCATION. 

9 Section 303(c) of the Energy Policy Act of 1992 (42 

10 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in11 serting ‘‘shall’’. 

12 SEC. 705. LEASE CONDENSATES. 

13 (a) LEASE CONDENSATE FUELS.—Section 301 of the 

14 Energy Policy Act of 1992 (42 U.S.C. 13211) is amend15 ed—

16 (1) in paragraph (2), by inserting ‘‘mixtures 

17 containing 50 percent or more by volume of lease 

18 condensate or fuels extracted from lease conden19 sate;’’ after ‘‘liquefied petroleum gas;’’; 

20 (2) in paragraph (13), by striking ‘‘and’’ at the 

21 end; 

22 (3) in paragraph (14)—

23 (A) by inserting ‘‘mixtures containing 50 

24 percent or more by volume of lease condensate 
264

•HR 1640 IH 

1 or fuels extracted from lease condensate,’’ after 

2 ‘‘liquefied petroleum gas,’’; and 

3 (B) by striking the period and inserting ‘‘; 

4 and’’; and 

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

6 ‘‘(15) the term ‘lease condensate’ means a mix7 ture, primarily of pentanes and heavier hydro8 carbons, that is recovered as a liquid from natural 

9 gas in lease separation facilities.’’. 

10 (b) LEASE CONDENSATE USE CREDITS.—

11 (1) IN GENERAL.—Title III of the Energy Pol12 icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend13 ed by adding at the end the following: 

14 ‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 

15 ‘‘(a) IN GENERAL.—Subject to subsection (d), the 

16 Secretary shall allocate 1 credit under this section to a 

17 fleet or covered person for each qualifying volume of the 

18 lease condensate component of fuel containing at least 50 

19 percent lease condensate, or fuels extracted from lease 

20 condensate, after the date of enactment of this section for 

21 use by the fleet or covered person in vehicles owned or 

22 operated by the fleet or covered person that weigh more 

23 than 8,500 pounds gross vehicle weight rating. 

24 ‘‘(b) REQUIREMENTS.—A credit allocated under this 

25 section—
265

•HR 1640 IH 

1 ‘‘(1) shall be subject to the same exceptions, 

2 authority, documentation, and use of credits that are 

3 specified for qualifying volumes of biodiesel in sec4 tion 312; and 

5 ‘‘(2) shall not be considered a credit under sec6 tion 508. 

7 ‘‘(c) REGULATION.—

8 ‘‘(1) IN GENERAL.—Subject to subsection (d), 

9 not later than January 1, 2006, after the collection 

10 of appropriate information and data that consider 

11 usage options, uses in other industries, products, or 

12 processes, potential volume capacities, costs, air 

13 emissions, and fuel efficiencies, the Secretary shall 

14 issue a regulation establishing requirements and pro15 cedures for the implementation of this section. 

16 ‘‘(2) QUALIFYING VOLUME.—The regulation 

17 shall include a determination of an appropriate 

18 qualifying volume for lease condensate, except that 

19 in no case shall the Secretary determine that the 

20 qualifying volume for lease condensate is less than 

21 1,125 gallons. 

22 ‘‘(d) APPLICABILITY.—This section applies unless the 

23 Secretary finds that the use of lease condensate as an al24 ternative fuel would adversely affect public health or safe25 ty or ambient air quality or the environment.’’. 
266

•HR 1640 IH 

1 (2) TABLE OF CONTENTS AMENDMENT.—The 

2 table of contents of the Energy Policy Act of 1992 

3 (42 U.S.C. prec. 13201) is amended by adding at 

4 the end of the items relating to title III the fol5 lowing:

‘‘Sec. 313. Lease condensate use credits.’’.

6 (c) EMERGENCY EXEMPTION.—Section 301 of the 

7 Energy Policy Act of 1992 (42 U.S.C. 13211) is amended 

8 in paragraph (9)(E) by inserting before the semicolon at 

9 the end ‘‘, including vehicles directly used in the emer10 gency repair of transmission lines and in the restoration 

11 of electricity service following power outages, as deter12 mined by the Secretary’’. 

13 SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO14 GRAMS. 

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

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

17 shall complete a study to determine the effect that titles 

18 III, IV, and V of the Energy Policy Act of 1992 (42 

19 U.S.C. 13211 et seq.) have had on—

20 (1) the development of alternative fueled vehicle 

21 technology; 

22 (2) the availability of that technology in the 

23 market; and 

24 (3) the cost of alternative fueled vehicles. 
267

•HR 1640 IH 

1 (b) TOPICS.—As part of the study under subsection 

2 (a), the Secretary shall specifically identify—

3 (1) the number of alternative fueled vehicles ac4 quired by fleets or covered persons required to ac5 quire alternative fueled vehicles; 

6 (2) the quantity, by type, of alternative fuel ac7 tually used in alternative fueled vehicles acquired by 

8 fleets or covered persons; 

9 (3) the quantity of petroleum displaced by the 

10 use of alternative fuels in alternative fueled vehicles 

11 acquired by fleets or covered persons; 

12 (4) the direct and indirect costs of compliance 

13 with requirements under titles III, IV, and V of the 

14 Energy Policy Act of 1992 (42 U.S.C. 13211 et 

15 seq.), including—

16 (A) vehicle acquisition requirements im17 posed on fleets or covered persons; 

18 (B) administrative and recordkeeping ex19 penses; 

20 (C) fuel and fuel infrastructure costs; 

21 (D) associated training and employee ex22 penses; and 

23 (E) any other factors or expenses the Sec24 retary determines to be necessary to compile re25 liable estimates of the overall costs and benefits 
268

•HR 1640 IH 

1 of complying with programs under those titles 

2 for fleets, covered persons, and the national 

3 economy; 

4 (5) the existence of obstacles preventing compli5 ance with vehicle acquisition requirements and in6 creased use of alternative fuel in alternative fueled 

7 vehicles acquired by fleets or covered persons; and 

8 (6) the projected impact of amendments to the 

9 Energy Policy Act of 1992 made by this title. 

10 (c) REPORT.—Upon completion of the study under 

11 this section, the Secretary shall submit to Congress a re12 port that describes the results of the study and includes 

13 any recommendations of the Secretary for legislative or 

14 administrative changes concerning the alternative fueled 

15 vehicle requirements under titles III, IV and V of the En16 ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.). 

17 SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL18 TERNATIVE FUELED VEHICLE PURCHASING 

19 REQUIREMENTS. 

20 Section 310(b)(1) of the Energy Policy Act of 1992 

21 (42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year 

22 after the date of enactment of this subsection’’ and insert23 ing ‘‘February 15, 2006’’. 
269

•HR 1640 IH 

1 Subtitle B—Hybrid Vehicles, Ad2 vanced Vehicles, and Fuel Cell 

3 Buses 

4 PART 1—HYBRID VEHICLES 

5 SEC. 711. HYBRID VEHICLES. 

6 The Secretary of Energy shall accelerate efforts di7 rected toward the improvement of batteries and other re8 chargeable energy storage systems, power electronics, hy9 brid systems integration, and other technologies for use 

10 in hybrid vehicles. 

11 SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION 

12 PROGRAM. 

13 (a) ESTABLISHMENT.—The Administrator of the En14 vironmental Protection Agency, in consultation with the 

15 Secretary, shall establish a program for awarding grants 

16 on a competitive basis to entities for the installation of 

17 hybrid retrofit and electric conversion technologies for 

18 combustion engine vehicles. 

19 (b) ELIGIBLE RECIPIENTS.—A grant shall be award20 ed under this section only—

21 (1) to a local or State governmental entity; 

22 (2) to a for-profit or nonprofit corporation or 

23 other person; or 
270

•HR 1640 IH 

1 (3) to 1 or more contracting entities that serv2 ice combustion engine vehicles for an entity de3 scribed in paragraph (1) or (2). 

4 (c) AWARDS.—

5 (1) IN GENERAL.—The Administrator shall 

6 seek, to the maximum extent practicable, to ensure 

7 a broad geographic distribution of grants under this 

8 section. 

9 (2) PREFERENCES.—In making awards of 

10 grants under this section, the Administrator shall 

11 give preference to proposals that—

12 (A) will achieve the greatest reductions in 

13 emissions per proposal or per vehicle; or 

14 (B) involve the use of emissions control 

15 retrofit or conversion technology. 

16 (d) CONDITIONS OF GRANT.—A grant shall be pro17 vided under this section on the conditions that—

18 (1) combustion engine vehicles on which hybrid 

19 retrofit or conversion technology are to be dem20 onstrated—

21 (A) with the retrofit or conversion tech22 nology applied will achieve low-emission stand23 ards consistent with the Voluntary National 

24 Low Emission Vehicle Program for Light-Duty 
271

•HR 1640 IH 

1 Vehicles and Light-Duty Trucks (40 CFR Part 

2 86) without model year restrictions; and 

3 (B) will be used for a minimum of 3 years; 

4 (2) grant funds will be used for the purchase of 

5 hybrid retrofit or conversion technology, including 

6 State taxes and contract fees; and 

7 (3) grant recipients will provide at least 15 per8 cent of the total cost of the retrofit or conversion, 

9 including the purchase of hybrid retrofit or conver10 sion technology and all necessary labor for installa11 tion of the retrofit or conversion. 

12 (e) VERIFICATION.—Not later than 90 days after the 

13 date of enactment of this Act, the Administrator shall 

14 publish in the Federal Register procedures to verify—

15 (1) the hybrid retrofit or conversion technology 

16 to be demonstrated; and 

17 (2) that grants are administered in accordance 

18 with this section. 

19 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to the Administrator to 

21 carry out this section, to remain available until ex22 pended—

23 (1) $20,000,000 for fiscal year 2005; 

24 (2) $35,000,000 for fiscal year 2006; 

25 (3) $45,000,000 for fiscal year 2007; and 
272

•HR 1640 IH 

1 (4) such sums as are necessary for each of fis2 cal years 2008 and 2009. 

3 PART 2—ADVANCED VEHICLES 

4 SEC. 721. DEFINITIONS. 

5 In this part: 

6 (1) ALTERNATIVE FUELED VEHICLE.—

7 (A) IN GENERAL.—The term ‘‘alternative 

8 fueled vehicle’’ means a vehicle propelled solely 

9 on an alternative fuel (as defined in section 301 

10 of the Energy Policy Act of 1992 (42 U.S.C. 

11 13211)). 

12 (B) EXCLUSION.—The term ‘‘alternative 

13 fueled vehicle’’ does not include a vehicle that 

14 the Secretary determines, by regulation, does 

15 not yield substantial environmental benefits 

16 over a vehicle operating solely on gasoline or 

17 diesel derived from fossil fuels. 

18 (2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

19 vehicle’’ means a vehicle propelled by an electric 

20 motor powered by a fuel cell system that converts 

21 chemical energy into electricity by combining oxygen 

22 (from air) with hydrogen fuel that is stored on the 

23 vehicle or is produced onboard by reformation of a 

24 hydrocarbon fuel. Such fuel cell system may or may 
273

•HR 1640 IH 

1 not include the use of auxiliary energy storage sys2 tems to enhance vehicle performance. 

3 (3) HYBRID VEHICLE.—The term ‘‘hybrid vehi4 cle’’ means a medium or heavy duty vehicle propelled 

5 by an internal combustion engine or heat engine 

6 using any combustible fuel and an onboard recharge7 able energy storage device. 

8 (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 

9 term ‘‘neighborhood electric vehicle’’ means a motor 

10 vehicle that—

11 (A) meets the definition of a low-speed ve12 hicle (as defined in part 571 of title 49, Code 

13 of Federal Regulations); 

14 (B) meets the definition of a zero-emission 

15 vehicle (as defined in section 86.1702–99 of 

16 title 40, Code of Federal Regulations); 

17 (C) meets the requirements of Federal 

18 Motor Vehicle Safety Standard No. 500; and 

19 (D) has a maximum speed of not greater 

20 than 25 miles per hour. 

21 (5) PILOT PROGRAM.—The term ‘‘pilot pro22 gram’’ means the competitive grant program estab23 lished under section 722. 

24 (6) SECRETARY.—The term ‘‘Secretary’’ means 

25 the Secretary of Energy. 
274

•HR 1640 IH 

1 (7) ULTRA-LOW SULFUR DIESEL VEHICLE.—

2 The term ‘‘ultra-low sulfur diesel vehicle’’ means a 

3 vehicle manufactured in any of model years 2004 

4 through 2006 powered by a heavy-duty diesel engine 

5 that—

6 (A) is fueled by diesel fuel that contains 

7 sulfur at not more than 15 parts per million; 

8 and 

9 (B) emits not more than the lesser of—

10 (i) for vehicles manufactured in model 

11 years 2004 through 2006, 2.5 grams per 

12 brake horsepower-hour of nonmethane hy13 drocarbons and oxides of nitrogen and .01 

14 grams per brake horsepower-hour of par15 ticulate matter; or 

16 (ii) the quantity of emissions of non17 methane hydrocarbons, oxides of nitrogen, 

18 and particulate matter of the best-per19 forming technology of ultra-low sulfur die20 sel vehicles of the same class and applica21 tion that are commercially available. 

22 SEC. 722. PILOT PROGRAM. 

23 (a) ESTABLISHMENT.—The Secretary, in consulta24 tion with the Secretary of Transportation, shall establish 

25 a competitive grant pilot program, to be administered 
275

•HR 1640 IH 

1 through the Clean Cities Program of the Department of 

2 Energy, to provide not more than 15 geographically dis3 persed project grants to State governments, local govern4 ments, or metropolitan transportation authorities to carry 

5 out a project or projects for the purposes described in sub6 section (b). 

7 (b) GRANT PURPOSES.—A grant under this section 

8 may be used for the following purposes: 

9 (1) The acquisition of alternative fueled vehicles 

10 or fuel cell vehicles, including—

11 (A) passenger vehicles (including neighbor12 hood electric vehicles); and 

13 (B) motorized 2-wheel bicycles, scooters, or 

14 other vehicles for use by law enforcement per15 sonnel or other State or local government or 

16 metropolitan transportation authority employ17 ees. 

18 (2) The acquisition of alternative fueled vehi19 cles, hybrid vehicles, or fuel cell vehicles, including—

20 (A) buses used for public transportation or 

21 transportation to and from schools; 

22 (B) delivery vehicles for goods or services; 

23 and 

24 (C) ground support vehicles at public air25 ports (including vehicles to carry baggage or 
276

•HR 1640 IH 

1 push or pull airplanes toward or away from ter2 minal gates). 

3 (3) The acquisition of ultra-low sulfur diesel ve4 hicles. 

5 (4) Installation or acquisition of infrastructure 

6 necessary to directly support an alternative fueled 

7 vehicle, fuel cell vehicle, or hybrid vehicle project 

8 funded by the grant, including fueling and other 

9 support equipment. 

10 (5) Operation and maintenance of vehicles, in11 frastructure, and equipment acquired as part of a 

12 project funded by the grant. 

13 (c) APPLICATIONS.—

14 (1) REQUIREMENTS.—

15 (A) IN GENERAL.—The Secretary shall 

16 issue requirements for applying for grants 

17 under the pilot program. 

18 (B) MINIMUM REQUIREMENTS.—At a min19 imum, the Secretary shall require that an appli20 cation for a grant—

21 (i) be submitted by the head of a 

22 State or local government or a metropoli23 tan transportation authority, or any com24 bination thereof, and a registered partici-
277

•HR 1640 IH 

1 pant in the Clean Cities Program of the 

2 Department of Energy; and 

3 (ii) include—

4 (I) a description of the project 

5 proposed in the application, including 

6 how the project meets the require7 ments of this part; 

8 (II) an estimate of the ridership 

9 or degree of use of the project; 

10 (III) an estimate of the air pollu11 tion emissions reduced and fossil fuel 

12 displaced as a result of the project, 

13 and a plan to collect and disseminate 

14 environmental data, related to the 

15 project to be funded under the grant, 

16 over the life of the project; 

17 (IV) a description of how the 

18 project will be sustainable without 

19 Federal assistance after the comple20 tion of the term of the grant; 

21 (V) a complete description of the 

22 costs of the project, including acquisi23 tion, construction, operation, and 

24 maintenance costs over the expected 

25 life of the project; 
278

•HR 1640 IH 

1 (VI) a description of which costs 

2 of the project will be supported by 

3 Federal assistance under this part; 

4 and 

5 (VII) documentation to the satis6 faction of the Secretary that diesel 

7 fuel containing sulfur at not more 

8 than 15 parts per million is available 

9 for carrying out the project, and a 

10 commitment by the applicant to use 

11 such fuel in carrying out the project. 

12 (2) PARTNERS.—An applicant under paragraph 

13 (1) may carry out a project under the pilot program 

14 in partnership with public and private entities. 

15 (d) SELECTION CRITERIA.—In evaluating applica16 tions under the pilot program, the Secretary shall—

17 (1) consider each applicant’s previous experi18 ence with similar projects; and 

19 (2) give priority consideration to applications 

20 that—

21 (A) are most likely to maximize protection 

22 of the environment; 

23 (B) demonstrate the greatest commitment 

24 on the part of the applicant to ensure funding 

25 for the proposed project and the greatest likeli-
279

•HR 1640 IH 

1 hood that the project will be maintained or ex2 panded after Federal assistance under this part 

3 is completed; and 

4 (C) exceed the minimum requirements of 

5 subsection (c)(1)(B)(ii). 

6 (e) PILOT PROJECT REQUIREMENTS.—

7 (1) MAXIMUM AMOUNT.—The Secretary shall 

8 not provide more than $20,000,000 in Federal as9 sistance under the pilot program to any applicant. 

10 (2) COST SHARING.—The Secretary shall not 

11 provide more than 50 percent of the cost, incurred 

12 during the period of the grant, of any project under 

13 the pilot program. 

14 (3) MAXIMUM PERIOD OF GRANTS.—The Sec15 retary shall not fund any applicant under the pilot 

16 program for more than 5 years. 

17 (4) DEPLOYMENT AND DISTRIBUTION.—The 

18 Secretary shall seek to the maximum extent prac19 ticable to ensure a broad geographic distribution of 

20 project sites. 

21 (5) TRANSFER OF INFORMATION AND KNOWL22 EDGE.—The Secretary shall establish mechanisms to 

23 ensure that the information and knowledge gained 

24 by participants in the pilot program are transferred 

25 among the pilot program participants and to other 
280

•HR 1640 IH 

1 interested parties, including other applicants that 

2 submitted applications. 

3 (f) SCHEDULE.—

4 (1) PUBLICATION.—Not later than 90 days 

5 after the date of enactment of this Act, the Sec6 retary shall publish in the Federal Register, Com7 merce Business Daily, and elsewhere as appropriate, 

8 a request for applications to undertake projects 

9 under the pilot program. Applications shall be due 

10 not later than 180 days after the date of publication 

11 of the notice. 

12 (2) SELECTION.—Not later than 180 days after 

13 the date by which applications for grants are due, 

14 the Secretary shall select by competitive, peer re15 viewed proposal, all applications for projects to be 

16 awarded a grant under the pilot program. 

17 (g) LIMIT ON FUNDING.—The Secretary shall pro18 vide not less than 20 nor more than 25 percent of the 

19 grant funding made available under this section for the 

20 acquisition of ultra-low sulfur diesel vehicles. 

21 SEC. 723. REPORTS TO CONGRESS. 

22 (a) INITIAL REPORT.—Not later than 60 days after 

23 the date on which grants are awarded under this part, 

24 the Secretary shall submit to Congress a report con25 taining—
281

•HR 1640 IH 

1 (1) an identification of the grant recipients and 

2 a description of the projects to be funded; 

3 (2) an identification of other applicants that 

4 submitted applications for the pilot program; and 

5 (3) a description of the mechanisms used by the 

6 Secretary to ensure that the information and knowl7 edge gained by participants in the pilot program are 

8 transferred among the pilot program participants 

9 and to other interested parties, including other ap10 plicants that submitted applications. 

11 (b) EVALUATION.—Not later than 3 years after the 

12 date of enactment of this Act, and annually thereafter 

13 until the pilot program ends, the Secretary shall submit 

14 to Congress a report containing an evaluation of the effec15 tiveness of the pilot program, including—

16 (1) an assessment of the benefits to the envi17 ronment derived from the projects included in the 

18 pilot program; and 

19 (2) an estimate of the potential benefits to the 

20 environment to be derived from widespread applica21 tion of alternative fueled vehicles and ultra-low sul22 fur diesel vehicles. 
282

•HR 1640 IH 

1 SEC. 724. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated to the Sec3 retary to carry out this part $200,000,000, to remain 

4 available until expended. 

5 PART 3—FUEL CELL BUSES 

6 SEC. 731. FUEL CELL TRANSIT BUS DEMONSTRATION. 

7 (a) IN GENERAL.—The Secretary of Energy, in con8 sultation with the Secretary of Transportation, shall es9 tablish a transit bus demonstration program to make com10 petitive, merit-based awards for 5-year projects to dem11 onstrate not more than 25 fuel cell transit buses (and nec12 essary infrastructure) in 5 geographically dispersed local13 ities. 

14 (b) PREFERENCE.—In selecting projects under this 

15 section, the Secretary of Energy shall give preference to 

16 projects that are most likely to mitigate congestion and 

17 improve air quality. 

18 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

19 are authorized to be appropriated to the Secretary of En20 ergy to carry out this section $10,000,000 for each of fis21 cal years 2006 through 2010. 

22 Subtitle C—Clean School Buses 

23 SEC. 741. DEFINITIONS. 

24 In this subtitle: 
283

•HR 1640 IH 

1 (1) ADMINISTRATOR.—The term ‘‘Adminis2 trator’’ means the Administrator of the Environ3 mental Protection Agency. 

4 (2) ALTERNATIVE FUEL.—The term ‘‘alter5 native fuel’’ means liquefied natural gas, compressed 

6 natural gas, liquefied petroleum gas, hydrogen, pro7 pane, or methanol or ethanol at no less than 85 per8 cent by volume. 

9 (3) ALTERNATIVE FUEL SCHOOL BUS.—The 

10 term ‘‘alternative fuel school bus’’ means a school 

11 bus that meets all of the requirements of this sub12 title and is operated solely on an alternative fuel. 

13 (4) EMISSIONS CONTROL RETROFIT TECH14 NOLOGY.—The term ‘‘emissions control retrofit tech15 nology’’ means a particulate filter or other emissions 

16 control equipment that is verified or certified by the 

17 Administrator or the California Air Resources Board 

18 as an effective emission reduction technology when 

19 installed on an existing school bus. 

20 (5) IDLING.—The term ‘‘idling’’ means oper21 ating an engine while remaining stationary for more 

22 than approximately 15 minutes, except that the term 

23 does not apply to routine stoppages associated with 

24 traffic movement or congestion. 
284

•HR 1640 IH 

1 (6) SECRETARY.—The term ‘‘Secretary’’ means 

2 the Secretary of Energy. 

3 (7) ULTRA-LOW SULFUR DIESEL FUEL.—The 

4 term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 

5 that contains sulfur at not more than 15 parts per 

6 million. 

7 (8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL

8 BUS.—The term ‘‘ultra-low sulfur diesel fuel school 

9 bus’’ means a school bus that meets all of the re10 quirements of this subtitle and is operated solely on 

11 ultra-low sulfur diesel fuel. 

12 SEC. 742. PROGRAM FOR REPLACEMENT OF CERTAIN 

13 SCHOOL BUSES WITH CLEAN SCHOOL BUSES. 

14 (a) ESTABLISHMENT.—The Administrator, in con15 sultation with the Secretary and other appropriate Federal 

16 departments and agencies, shall establish a program for 

17 awarding grants on a competitive basis to eligible entities 

18 for the replacement of existing school buses manufactured 

19 before model year 1991 with alternative fuel school buses 

20 and ultra-low sulfur diesel fuel school buses. 

21 (b) REQUIREMENTS.—

22 (1) IN GENERAL.—Not later than 90 days after 

23 the date of enactment of this Act, the Administrator 

24 shall establish and publish in the Federal Register 

25 grant requirements on eligibility for assistance, and 
285

•HR 1640 IH 

1 on implementation of the program established under 

2 subsection (a), including instructions for the submis3 sion of grant applications and certification require4 ments to ensure compliance with this subtitle. 

5 (2) APPLICATION DEADLINES.—The require6 ments established under paragraph (1) shall require 

7 submission of grant applications not later than—

8 (A) in the case of the first year of program 

9 implementation, the date that is 180 days after 

10 the publication of the requirements in the Fed11 eral Register; and 

12 (B) in the case of each subsequent year, 

13 June 1 of the year. 

14 (c) ELIGIBLE RECIPIENTS.—A grant shall be award15 ed under this section only—

16 (1) to 1 or more local or State governmental 

17 entities responsible for providing school bus service 

18 to 1 or more public school systems or responsible for 

19 the purchase of school buses; 

20 (2) to 1 or more contracting entities that pro21 vide school bus service to 1 or more public school 

22 systems, if the grant application is submitted jointly 

23 with the 1 or more school systems to be served by 

24 the buses, except that the application may provide 

25 that buses purchased using funds awarded shall be 
286

•HR 1640 IH 

1 owned, operated, and maintained exclusively by the 

2 1 or more contracting entities; or 

3 (3) to a nonprofit school transportation associa4 tion representing private contracting entities, if the 

5 association has notified and received approval from 

6 the 1 or more school systems to be served by the 

7 buses. 

8 (d) AWARD DEADLINES.—

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

10 the Administrator shall award a grant made to a 

11 qualified applicant for a fiscal year—

12 (A) in the case of the first fiscal year of 

13 program implementation, not later than the 

14 date that is 90 days after the application dead15 line established under subsection (b)(2); and 

16 (B) in the case of each subsequent fiscal 

17 year, not later than August 1 of the fiscal year. 

18 (2) INSUFFICIENT NUMBER OF QUALIFIED

19 GRANT APPLICATIONS.—If the Administrator does 

20 not receive a sufficient number of qualified grant ap21 plications to meet the requirements of subsection 

22 (i)(1) for a fiscal year, the Administrator shall 

23 award a grant made to a qualified applicant under 

24 subsection (i)(2) not later than September 30 of the 

25 fiscal year. 
287

•HR 1640 IH 

1 (e) TYPES OF GRANTS.—

2 (1) IN GENERAL.—A grant under this section 

3 shall be used for the replacement of school buses 

4 manufactured before model year 1991 with alter5 native fuel school buses and ultra-low sulfur diesel 

6 fuel school buses. 

7 (2) NO ECONOMIC BENEFIT.—Other than the 

8 receipt of the grant, a recipient of a grant under this 

9 section may not receive any economic benefit in con10 nection with the receipt of the grant. 

11 (3) PRIORITY OF GRANT APPLICATIONS.—The 

12 Administrator shall give priority to applicants that 

13 propose to replace school buses manufactured before 

14 model year 1977. 

15 (f) CONDITIONS OF GRANT.—A grant provided under 

16 this section shall include the following conditions: 

17 (1) SCHOOL BUS FLEET.—All buses acquired 

18 with funds provided under the grant shall be oper19 ated as part of the school bus fleet for which the 

20 grant was made for a minimum of 5 years. 

21 (2) USE OF FUNDS.—Funds provided under the 

22 grant may only be used—

23 (A) to pay the cost, except as provided in 

24 paragraph (3), of new alternative fuel school 

25 buses or ultra-low sulfur diesel fuel school 
288

•HR 1640 IH 

1 buses, including State taxes and contract fees 

2 associated with the acquisition of such buses; 

3 and 

4 (B) to provide—

5 (i) up to 20 percent of the price of the 

6 alternative fuel school buses acquired, for 

7 necessary alternative fuel infrastructure if 

8 the infrastructure will only be available to 

9 the grant recipient; and 

10 (ii) up to 25 percent of the price of 

11 the alternative fuel school buses acquired, 

12 for necessary alternative fuel infrastructure 

13 if the infrastructure will be available to the 

14 grant recipient and to other bus fleets. 

15 (3) GRANT RECIPIENT FUNDS.—The grant re16 cipient shall be required to provide at least—

17 (A) in the case of a grant recipient de18 scribed in paragraph (1) or (3) of subsection 

19 (c), the lesser of—

20 (i) an amount equal to 15 percent of 

21 the total cost of each bus received; or 

22 (ii) $15,000 per bus; and 

23 (B) in the case of a grant recipient de24 scribed in subsection (c)(2), the lesser of—
289

•HR 1640 IH 

1 (i) an amount equal to 20 percent of 

2 the total cost of each bus received; or 

3 (ii) $20,000 per bus. 

4 (4) ULTRA-LOW SULFUR DIESEL FUEL.—In the 

5 case of a grant recipient receiving a grant for ultra6 low sulfur diesel fuel school buses, the grant recipi7 ent shall be required to provide documentation to 

8 the satisfaction of the Administrator that diesel fuel 

9 containing sulfur at not more than 15 parts per mil10 lion is available for carrying out the purposes of the 

11 grant, and a commitment by the applicant to use 

12 such fuel in carrying out the purposes of the grant. 

13 (5) TIMING.—All alternative fuel school buses, 

14 ultra-low sulfur diesel fuel school buses, or alter15 native fuel infrastructure acquired under a grant 

16 awarded under this section shall be purchased and 

17 placed in service as soon as practicable. 

18 (g) BUSES.—

19 (1) IN GENERAL.—Except as provided in para20 graph (2), funding under a grant made under this 

21 section for the acquisition of new alternative fuel 

22 school buses or ultra-low sulfur diesel fuel school 

23 buses shall only be used to acquire school buses—

24 (A) with a gross vehicle weight of greater 

25 than 14,000 pounds; 
290

•HR 1640 IH 

1 (B) that are powered by a heavy duty en2 gine; 

3 (C) in the case of alternative fuel school 

4 buses manufactured in model years 2004 

5 through 2006, that emit not more than 1.8 

6 grams per brake horsepower-hour of non7 methane hydrocarbons and oxides of nitrogen 

8 and .01 grams per brake horsepower-hour of 

9 particulate matter; and 

10 (D) in the case of ultra-low sulfur diesel 

11 fuel school buses manufactured in model years 

12 2004 through 2006, that emit not more than 

13 2.5 grams per brake horsepower-hour of non14 methane hydrocarbons and oxides of nitrogen 

15 and .01 grams per brake horsepower-hour of 

16 particulate matter. 

17 (2) LIMITATIONS.—A bus shall not be acquired 

18 under this section that emits nonmethane hydro19 carbons, oxides of nitrogen, or particulate matter at 

20 a rate greater than the best performing technology 

21 of the same class of ultra-low sulfur diesel fuel 

22 school buses commercially available at the time the 

23 grant is made. 

24 (h) DEPLOYMENT AND DISTRIBUTION.—The Admin25 istrator shall—
291

•HR 1640 IH 

1 (1) seek, to the maximum extent practicable, to 

2 achieve nationwide deployment of alternative fuel 

3 school buses and ultra-low sulfur diesel fuel school 

4 buses through the program under this section; and 

5 (2) ensure a broad geographic distribution of 

6 grant awards, with a goal of no State receiving more 

7 than 10 percent of the grant funding made available 

8 under this section for a fiscal year. 

9 (i) ALLOCATION OF FUNDS.—

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

11 the amount of grant funding made available to carry 

12 out this section for any fiscal year, the Adminis13 trator shall use—

14 (A) 70 percent for the acquisition of alter15 native fuel school buses or supporting infra16 structure; and 

17 (B) 30 percent for the acquisition of ultra18 low sulfur diesel fuel school buses. 

19 (2) INSUFFICIENT NUMBER OF QUALIFIED

20 GRANT APPLICATIONS.—After the first fiscal year in 

21 which this program is in effect, if the Administrator 

22 does not receive a sufficient number of qualified 

23 grant applications to meet the requirements of sub24 paragraph (A) or (B) of paragraph (1) for a fiscal 

25 year, effective beginning on August 1 of the fiscal 
292

•HR 1640 IH 

1 year, the Administrator shall make the remaining 

2 funds available to other qualified grant applicants 

3 under this section. 

4 (j) REDUCTION OF SCHOOL BUS IDLING.—Each 

5 local educational agency (as defined in section 9101 of the 

6 Elementary and Secondary Education Act of 1965 (20 

7 U.S.C. 7801)) that receives Federal funds under the Ele8 mentary and Secondary Education Act of 1965 (20 U.S.C. 

9 6301 et seq.) is encouraged to develop a policy, consistent 

10 with the health, safety, and welfare of students and the 

11 proper operation and maintenance of school buses, to re12 duce the incidence of unnecessary school bus idling at 

13 schools when picking up and unloading students. 

14 (k) ANNUAL REPORT.—

15 (1) IN GENERAL.—Not later than January 31 

16 of each year, the Administrator shall transmit to 

17 Congress a report evaluating implementation of the 

18 programs under this section and section 743. 

19 (2) COMPONENTS.—The reports shall include a 

20 description of—

21 (A) the total number of grant applications 

22 received; 

23 (B) the number and types of alternative 

24 fuel school buses, ultra-low sulfur diesel fuel 
293

•HR 1640 IH 

1 school buses, and retrofitted buses requested in 

2 grant applications; 

3 (C) grants awarded and the criteria used 

4 to select the grant recipients; 

5 (D) certified engine emission levels of all 

6 buses purchased or retrofitted under the pro7 grams under this section and section 743; 

8 (E) an evaluation of the in-use emission 

9 level of buses purchased or retrofitted under the 

10 programs under this section and section 743; 

11 and 

12 (F) any other information the Adminis13 trator considers appropriate. 

14 (l) AUTHORIZATION OF APPROPRIATIONS.—There 

15 are authorized to be appropriated to the Administrator to 

16 carry out this section, to remain available until ex17 pended—

18 (1) $45,000,000 for fiscal year 2005; 

19 (2) $65,000,000 for fiscal year 2006; 

20 (3) $90,000,000 for fiscal year 2007; and 

21 (4) such sums as are necessary for each of fis22 cal years 2008 and 2009. 

23 SEC. 743. DIESEL RETROFIT PROGRAM. 

24 (a) ESTABLISHMENT.—The Administrator, in con25 sultation with the Secretary, shall establish a program for 
294

•HR 1640 IH 

1 awarding grants on a competitive basis to entities for the 

2 installation of retrofit technologies for diesel school buses. 

3 (b) ELIGIBLE RECIPIENTS.—A grant shall be award4 ed under this section only—

5 (1) to a local or State governmental entity re6 sponsible for providing school bus service to 1 or 

7 more public school systems; 

8 (2) to 1 or more contracting entities that pro9 vide school bus service to 1 or more public school 

10 systems, if the grant application is submitted jointly 

11 with the 1 or more school systems that the buses 

12 will serve, except that the application may provide 

13 that buses purchased using funds awarded shall be 

14 owned, operated, and maintained exclusively by the 

15 1 or more contracting entities; or 

16 (3) to a nonprofit school transportation associa17 tion representing private contracting entities, if the 

18 association has notified and received approval from 

19 the 1 or more school systems to be served by the 

20 buses. 

21 (c) AWARDS.—

22 (1) IN GENERAL.—The Administrator shall 

23 seek, to the maximum extent practicable, to ensure 

24 a broad geographic distribution of grants under this 

25 section. 
295

•HR 1640 IH 

1 (2) PREFERENCES.—In making awards of 

2 grants under this section, the Administrator shall 

3 give preference to proposals that—

4 (A) will achieve the greatest reductions in 

5 emissions of nonmethane hydrocarbons, oxides 

6 of nitrogen, or particulate matter per proposal 

7 or per bus; or 

8 (B) involve the use of emissions control 

9 retrofit technology on diesel school buses that 

10 operate solely on ultra-low sulfur diesel fuel. 

11 (d) CONDITIONS OF GRANT.—A grant shall be pro12 vided under this section on the conditions that—

13 (1) buses on which retrofit emissions-control 

14 technology are to be demonstrated—

15 (A) will operate on ultra-low sulfur diesel 

16 fuel where such fuel is reasonably available or 

17 required for sale by State or local law or regula18 tion; 

19 (B) were manufactured in model year 1991 

20 or later; and 

21 (C) will be used for the transportation of 

22 school children to and from school for a min23 imum of 5 years; 
296

•HR 1640 IH 

1 (2) grant funds will be used for the purchase of 

2 emission control retrofit technology, including State 

3 taxes and contract fees; and 

4 (3) grant recipients will provide at least 15 per5 cent of the total cost of the retrofit, including the 

6 purchase of emission control retrofit technology and 

7 all necessary labor for installation of the retrofit. 

8 (e) VERIFICATION.—Not later than 90 days after the 

9 date of enactment of this Act, the Administrator shall 

10 publish in the Federal Register procedures to verify—

11 (1) the retrofit emissions-control technology to 

12 be demonstrated; 

13 (2) that buses powered by ultra-low sulfur die14 sel fuel on which retrofit emissions-control tech15 nology are to be demonstrated will operate on diesel 

16 fuel containing not more than 15 parts per million 

17 of sulfur; and 

18 (3) that grants are administered in accordance 

19 with this section. 

20 (f) AUTHORIZATION OF APPROPRIATIONS.—There 

21 are authorized to be appropriated to the Administrator to 

22 carry out this section, to remain available until ex23 pended—

24 (1) $20,000,000 for fiscal year 2005; 

25 (2) $35,000,000 for fiscal year 2006; 
297

•HR 1640 IH 

1 (3) $45,000,000 for fiscal year 2007; and 

2 (4) such sums as are necessary for each of fis3 cal years 2008 and 2009. 

4 SEC. 744. FUEL CELL SCHOOL BUSES. 

5 (a) ESTABLISHMENT.—The Secretary shall establish 

6 a program for entering into cooperative agreements—

7 (1) with private sector fuel cell bus developers 

8 for the development of fuel cell-powered school 

9 buses; and 

10 (2) subsequently, with not less than 2 units of 

11 local government using natural gas-powered school 

12 buses and such private sector fuel cell bus developers 

13 to demonstrate the use of fuel cell-powered school 

14 buses. 

15 (b) COST SHARING.—The non-Federal contribution 

16 for activities funded under this section shall be not less 

17 than—

18 (1) 20 percent for fuel infrastructure develop19 ment activities; and 

20 (2) 50 percent for demonstration activities and 

21 for development activities not described in paragraph 

22 (1). 

23 (c) REPORTS TO CONGRESS.—Not later than 3 years 

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

25 transmit to Congress a report that—
298

•HR 1640 IH 

1 (1) evaluates the process of converting natural 

2 gas infrastructure to accommodate fuel cell-powered 

3 school buses; and 

4 (2) assesses the results of the development and 

5 demonstration program under this section. 

6 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

7 are authorized to be appropriated to the Secretary to carry 

8 out this section $25,000,000 for the period of fiscal years 

9 2005 through 2007. 

10 Subtitle D—Miscellaneous 

11 SEC. 751. RAILROAD EFFICIENCY. 

12 (a) ESTABLISHMENT.—The Secretary of Energy 

13 shall, in cooperation with the Secretary of Transportation 

14 and the Administrator of the Environmental Protection 

15 Agency, establish a cost-shared, public-private research 

16 partnership involving the Federal Government, railroad 

17 carriers, locomotive manufacturers and equipment sup18 pliers, and the Association of American Railroads, to de19 velop and demonstrate railroad locomotive technologies 

20 that increase fuel economy, reduce emissions, and lower 

21 costs of operation. 

22 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

23 are authorized to be appropriated to the Secretary of En24 ergy to carry out this section—

25 (1) $25,000,000 for fiscal year 2006; 
299

•HR 1640 IH 

1 (2) $35,000,000 for fiscal year 2007; and 

2 (3) $50,000,000 for fiscal year 2008. 

3 SEC. 752. MOBILE EMISSION REDUCTIONS TRADING AND 

4 CREDITING. 

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

6 date of enactment of this Act, the Administrator of the 

7 Environmental Protection Agency shall submit to Con8 gress a report on the experience of the Administrator with 

9 the trading of mobile source emission reduction credits for 

10 use by owners and operators of stationary source emission 

11 sources to meet emission offset requirements within a non12 attainment area. 

13 (b) CONTENTS.—The report shall describe—

14 (1) projects approved by the Administrator that 

15 include the trading of mobile source emission reduc16 tion credits for use by stationary sources in com17 plying with offset requirements, including a descrip18 tion of—

19 (A) project and stationary sources location; 

20 (B) volumes of emissions offset and trad21 ed; 

22 (C) the sources of mobile emission reduc23 tion credits; and 

24 (D) if available, the cost of the credits; 
300

•HR 1640 IH 

1 (2) the significant issues identified by the Ad2 ministrator in consideration and approval of trading 

3 in the projects; 

4 (3) the requirements for monitoring and assess5 ing the air quality benefits of any approved project; 

6 (4) the statutory authority on which the Admin7 istrator has based approval of the projects; 

8 (5) an evaluation of how the resolution of issues 

9 in approved projects could be used in other projects; 

10 and 

11 (6) any other issues that the Administrator con12 siders relevant to the trading and generation of mo13 bile source emission reduction credits for use by sta14 tionary sources or for other purposes. 

15 SEC. 753. AVIATION FUEL CONSERVATION AND EMISSIONS. 

16 (a) IN GENERAL.—Not later than 60 days after the 

17 date of enactment of this Act, the Administrator of the 

18 Federal Aviation Administration and the Administrator of 

19 the Environmental Protection Agency shall jointly initiate 

20 a study to identify—

21 (1) the impact of aircraft emissions on air qual22 ity in nonattainment areas; and 

23 (2) ways to promote fuel conservation measures 

24 for aviation to—

25 (A) enhance fuel efficiency; and 
301

•HR 1640 IH 

1 (B) reduce emissions. 

2 (b) FOCUS.—The study under subsection (a) shall 

3 focus on how air traffic management inefficiencies, such 

4 as aircraft idling at airports, result in unnecessary fuel 

5 burn and air emissions. 

6 (c) REPORT.—Not later than 1 year after the date 

7 of the initiation of the study under subsection (a), the Ad8 ministrator of the Federal Aviation Administration and 

9 the Administrator of the Environmental Protection Agen10 cy shall jointly submit to the Committee on Energy and 

11 Commerce and the Committee on Transportation and In12 frastructure of the House of Representatives and the Com13 mittee on Environment and Public Works and the Com14 mittee on Commerce, Science, and Transportation of the 

15 Senate a report that—

16 (1) describes the results of the study; and 

17 (2) includes any recommendations on ways in 

18 which unnecessary fuel use and emissions affecting 

19 air quality may be reduced—

20 (A) without adversely affecting safety and 

21 security and increasing individual aircraft noise; 

22 and 

23 (B) while taking into account all aircraft 

24 emissions and the impact of the emissions on 

25 human health. 
302

•HR 1640 IH 

1 SEC. 754. DIESEL FUELED VEHICLES. 

2 (a) DEFINITION OF TIER 2 EMISSION STANDARDS.—

3 In this section, the term ‘‘tier 2 emission standards’’ 

4 means the motor vehicle emission standards that apply to 

5 passenger cars, light trucks, and larger passenger vehicles 

6 manufactured after the 2003 model year, as issued on 

7 February 10, 2000, by the Administrator of the Environ8 mental Protection Agency under sections 202 and 211 of 

9 the Clean Air Act (42 U.S.C. 7521, 7545). 

10 (b) DIESEL COMBUSTION AND AFTER-TREATMENT

11 TECHNOLOGIES.—The Secretary of Energy shall accel12 erate efforts to improve diesel combustion and after-treat13 ment technologies for use in diesel fueled motor vehicles. 

14 (c) GOALS.—The Secretary shall carry out subsection 

15 (b) with a view toward achieving the following goals: 

16 (1) Developing and demonstrating diesel tech17 nologies that, not later than 2010, meet the fol18 lowing standards: 

19 (A) Tier 2 emission standards. 

20 (B) The heavy-duty emissions standards of 

21 2007 that are applicable to heavy-duty vehicles 

22 under regulations issued by the Administrator 

23 of the Environmental Protection Agency as of 

24 the date of enactment of this Act. 

25 (2) Developing the next generation of low-emis26 sion, high efficiency diesel engine technologies, in-
303

•HR 1640 IH 

1 cluding homogeneous charge compression ignition 

2 technology. 

3 SEC. 757. BIODIESEL ENGINE TESTING PROGRAM. 

4 (a) IN GENERAL.—Not later that 180 days after the 

5 date of enactment of this Act, the Secretary shall initiate 

6 a partnership with diesel engine, diesel fuel injection sys7 tem, and diesel vehicle manufacturers and diesel and bio8 diesel fuel providers, to include biodiesel testing in ad9 vanced diesel engine and fuel system technology. 

10 (b) SCOPE.—The program shall provide for testing 

11 to determine the impact of biodiesel from different sources 

12 on current and future emission control technologies, with 

13 emphasis on—

14 (1) the impact of biodiesel on emissions war15 ranty, in-use liability, and antitampering provisions; 

16 (2) the impact of long-term use of biodiesel on 

17 engine operations; 

18 (3) the options for optimizing these technologies 

19 for both emissions and performance when switching 

20 between biodiesel and diesel fuel; and 

21 (4) the impact of using biodiesel in these fuel22 ing systems and engines when used as a blend with 

23 2006 Environmental Protection Agency-mandated 

24 diesel fuel containing a maximum of 15-parts-per25 million sulfur content. 
304

•HR 1640 IH 

1 (c) REPORT.—Not later than 2 years after the date 

2 of enactment of this Act, the Secretary shall provide an 

3 interim report to Congress on the findings of the program, 

4 including a comprehensive analysis of impacts from bio5 diesel on engine operation for both existing and expected 

6 future diesel technologies, and recommendations for en7 suring optimal emissions reductions and engine perform8 ance with biodiesel. 

9 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated $5,000,000 for each of 

11 fiscal years 2006 through 2010 to carry out this section. 

12 (e) DEFINITION.—For purposes of this section, the 

13 term ‘‘biodiesel’’ means a diesel fuel substitute produced 

14 from nonpetroleum renewable resources that meets the 

15 registration requirements for fuels and fuel additives es16 tablished by the Environmental Protection Agency under 

17 section 211 of the Clean Air Act (42 U.S.C. 7545) and 

18 that meets the American Society for Testing and Materials 

19 D6751–02a Standard Specification for Biodiesel Fuel 

20 (B100) Blend Stock for Distillate Fuels. 

21 SEC. 759. ULTRA-EFFICIENT ENGINE TECHNOLOGY FOR 

22 AIRCRAFT. 

23 (a) ULTRA-EFFICIENT ENGINE TECHNOLOGY PART24 NERSHIP.—The Secretary of Energy shall enter into a co25 operative agreement with the National Aeronautics and 
305

•HR 1640 IH 

1 Space Administration for the development of ultra-effi2 cient engine technology for aircraft. 

3 (b) PERFORMANCE OBJECTIVE.—The Secretary of 

4 Energy shall establish the following performance objec5 tives for the program set forth in subsection (a): 

6 (1) A fuel efficiency increase of 10 percent. 

7 (2) A reduction in the impact of landing and 

8 takeoff nitrogen oxides emissions on local air quality 

9 of 70 percent. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

11 are authorized to be appropriated to the Secretary of En12 ergy for carrying out this section $45,000,000 for each 

13 of the fiscal years 2006, 2007, 2008, 2009, and 2010. 

14 Subtitle E—Automobile Efficiency 

15 SEC. 771. AUTHORIZATION OF APPROPRIATIONS FOR IM16 PLEMENTATION AND ENFORCEMENT OF 

17 FUEL ECONOMY STANDARDS. 

18 In addition to any other funds authorized by law, 

19 there are authorized to be appropriated to the National 

20 Highway Traffic Safety Administration to carry out its ob21 ligations with respect to average fuel economy standards 

22 $2,000,000 for each of fiscal years 2006 through 2010. 
306

•HR 1640 IH 

1 SEC. 772. REVISED CONSIDERATIONS FOR DECISIONS ON 

2 MAXIMUM FEASIBLE AVERAGE FUEL ECON3 OMY. 

4 Section 32902(f) of title 49, United States Code, is 

5 amended to read as follows: 

6 ‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM

7 FEASIBLE AVERAGE FUEL ECONOMY.—When deciding 

8 maximum feasible average fuel economy under this sec9 tion, the Secretary of Transportation shall consider the 

10 following matters: 

11 ‘‘(1) Technological feasibility. 

12 ‘‘(2) Economic practicability. 

13 ‘‘(3) The effect of other motor vehicle standards 

14 of the Government on fuel economy. 

15 ‘‘(4) The need of the United States to conserve 

16 energy. 

17 ‘‘(5) The effects of fuel economy standards on 

18 passenger automobiles, nonpassenger automobiles, 

19 and occupant safety. 

20 ‘‘(6) The effects of compliance with average fuel 

21 economy standards on levels of automobile industry 

22 employment in the United States.’’. 
307

•HR 1640 IH 

1 SEC. 773. EXTENSION OF MAXIMUM FUEL ECONOMY IN2 CREASE FOR ALTERNATIVE FUELED VEHI3 CLES. 

4 (a) MANUFACTURING INCENTIVES.—Section 32905 

5 of title 49, United States Code, is amended—

6 (1) in each of subsections (b) and (d), by strik7 ing ‘‘1993–2004’’ and inserting ‘‘1993–2010’’; 

8 (2) in subsection (f), by striking ‘‘2001’’ and 

9 inserting ‘‘2007’’; and 

10 (3) in subsection (f)(1), by striking ‘‘2004’’ and 

11 inserting ‘‘2010’’. 

12 (b) MAXIMUM FUEL ECONOMY INCREASE.—Sub13 section (a)(1) of section 32906 of title 49, United States 

14 Code, is amended—

15 (1) in subparagraph (A), by striking ‘‘the model 

16 years 1993–2004’’ and inserting ‘‘model years 

17 1993–2010’’; and 

18 (2) in subparagraph (B), by striking ‘‘the model 

19 years 2005–2008’’ and inserting ‘‘model years 

20 2011–2014’’. 

21 SEC. 774. STUDY OF FEASIBILITY AND EFFECTS OF REDUC22 ING USE OF FUEL FOR AUTOMOBILES. 

23 (a) IN GENERAL.—Not later than 30 days after the 

24 date of the enactment of this Act, the Administrator of 

25 the National Highway Traffic Safety Administration shall 

26 initiate a study of the feasibility and effects of reducing 
308

•HR 1640 IH 

1 by model year 2014, by a significant percentage, the 

2 amount of fuel consumed by automobiles. 

3 (b) SUBJECTS OF STUDY.—The study under this sec4 tion shall include—

5 (1) examination of, and recommendation of al6 ternatives to, the policy under current Federal law 

7 of establishing average fuel economy standards for 

8 automobiles and requiring each automobile manufac9 turer to comply with average fuel economy standards 

10 that apply to the automobiles it manufactures; 

11 (2) examination of how automobile manufactur12 ers could contribute toward achieving the reduction 

13 referred to in subsection (a); 

14 (3) examination of the potential of fuel cell 

15 technology in motor vehicles in order to determine 

16 the extent to which such technology may contribute 

17 to achieving the reduction referred to in subsection 

18 (a); and 

19 (4) examination of the effects of the reduction 

20 referred to in subsection (a) on—

21 (A) gasoline supplies; 

22 (B) the automobile industry, including 

23 sales of automobiles manufactured in the 

24 United States; 

25 (C) motor vehicle safety; and 
309

•HR 1640 IH 

1 (D) air quality. 

2 (c) REPORT.—The Administrator shall submit to 

3 Congress a report on the findings, conclusion, and rec4 ommendations of the study under this section by not later 

5 than 1 year after the date of the enactment of this Act. 

6 TITLE VIII—HYDROGEN 

7 SEC. 801. DEFINITIONS. 

8 In this title: 

9 (1) ADVISORY COMMITTEE.—The term ‘‘Advi10 sory Committee’’ means the Hydrogen Technical and 

11 Fuel Cell Advisory Committee established under sec12 tion 805. 

13 (2) DEPARTMENT.—The term ‘‘Department’’ 

14 means the Department of Energy. 

15 (3) FUEL CELL.—The term ‘‘fuel cell’’ means a 

16 device that directly converts the chemical energy of 

17 a fuel and an oxidant into electricity by an electro18 chemical process taking place at separate electrodes 

19 in the device. 

20 (4) INFRASTRUCTURE.—The term ‘‘infrastruc21 ture’’ means the equipment, systems, or facilities 

22 used to produce, distribute, deliver, or store hydro23 gen. 

24 (5) LIGHT DUTY VEHICLE.—The term ‘‘light 

25 duty vehicle’’ means a car or truck classified by the 
310

•HR 1640 IH 

1 Department of Transportation as a Class I or IIA 

2 vehicle. 

3 (6) SECRETARY.—The term ‘‘Secretary’’ means 

4 the Secretary of Energy. 

5 SEC. 802. PLAN. 

6 Not later than 6 months after the date of enactment 

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

8 coordinated plan for the programs described in this title 

9 and any other programs of the Department that are di10 rectly related to fuel cells or hydrogen. The plan shall de11 scribe, at a minimum—

12 (1) the agenda for the next 5 years for the pro13 grams authorized under this title, including the 

14 agenda for each activity enumerated in section 

15 803(a); 

16 (2) the types of entities that will carry out the 

17 activities under this title and what role each entity 

18 is expected to play; 

19 (3) the milestones that will be used to evaluate 

20 the programs for the next 5 years; 

21 (4) the most significant technical and nontech22 nical hurdles that stand in the way of achieving the 

23 goals described in section 803(b), and how the pro24 grams will address those hurdles; and 
311

•HR 1640 IH 

1 (5) the policy assumptions that are implicit in 

2 the plan, including any assumptions that would af3 fect the sources of hydrogen or the marketability of 

4 hydrogen-related products. 

5 SEC. 803. PROGRAMS. 

6 (a) ACTIVITIES.—The Secretary, in partnership with 

7 the private sector, shall conduct programs to address—

8 (1) production of hydrogen from diverse energy 

9 sources, including—

10 (A) fossil fuels, which may include carbon 

11 capture and sequestration; 

12 (B) hydrogen-carrier fuels (including eth13 anol and methanol); 

14 (C) renewable energy resources, including 

15 biomass; and 

16 (D) nuclear energy; 

17 (2) use of hydrogen for commercial, industrial, 

18 and residential electric power generation; 

19 (3) safe delivery of hydrogen or hydrogen-car20 rier fuels, including—

21 (A) transmission by pipeline and other dis22 tribution methods; and 

23 (B) convenient and economic refueling of 

24 vehicles either at central refueling stations or 

25 through distributed on-site generation; 
312

•HR 1640 IH 

1 (4) advanced vehicle technologies, including—

2 (A) engine and emission control systems; 

3 (B) energy storage, electric propulsion, and 

4 hybrid systems; 

5 (C) automotive materials; and 

6 (D) other advanced vehicle technologies; 

7 (5) storage of hydrogen or hydrogen-carrier 

8 fuels, including development of materials for safe 

9 and economic storage in gaseous, liquid, or solid 

10 form at refueling facilities and onboard vehicles; 

11 (6) development of safe, durable, affordable, 

12 and efficient fuel cells, including fuel-flexible fuel cell 

13 power systems, improved manufacturing processes, 

14 high-temperature membranes, cost-effective fuel 

15 processing for natural gas, fuel cell stack and system 

16 reliability, low temperature operation, and cold start 

17 capability; 

18 (7) development, after consultation with the pri19 vate sector, of necessary codes and standards (in20 cluding international codes and standards and vol21 untary consensus standards adopted in accordance 

22 with OMB Circular A–119) and safety practices for 

23 the production, distribution, storage, and use of hy24 drogen, hydrogen-carrier fuels, and related products; 
313

•HR 1640 IH 

1 (8) a public education program to develop im2 proved knowledge and acceptability of hydrogen3 based systems; and 

4 (9) the ability of domestic automobile manufac5 turers to manufacture commercially available com6 petitive hybrid vehicle technologies in the United 

7 States. 

8 (b) PROGRAM GOALS.—

9 (1) VEHICLES.—For vehicles, the goals of the 

10 program are—

11 (A) to enable a commitment by auto12 makers no later than year 2015 to offer safe, 

13 affordable, and technically viable hydrogen fuel 

14 cell vehicles in the mass consumer market; and 

15 (B) to enable production, delivery, and ac16 ceptance by consumers of model year 2020 hy17 drogen fuel cell and other hydrogen-powered ve18 hicles that will have—

19 (i) a range of at least 300 miles; 

20 (ii) improved performance and ease of 

21 driving; 

22 (iii) safety and performance com23 parable to vehicle technologies in the mar24 ket; and 
314

•HR 1640 IH 

1 (iv) when compared to light duty vehi2 cles in model year 2003—

3 (I) fuel economy that is substan4 tially higher; 

5 (II) substantially lower emissions 

6 of air pollutants; and 

7 (III) equivalent or improved vehi8 cle fuel system crash integrity and oc9 cupant protection. 

10 (2) HYDROGEN ENERGY AND ENERGY INFRA11 STRUCTURE.—For hydrogen energy and energy in12 frastructure, the goals of the program are to enable 

13 a commitment not later than 2015 that will lead to 

14 infrastructure by 2020 that will provide—

15 (A) safe and convenient refueling; 

16 (B) improved overall efficiency; 

17 (C) widespread availability of hydrogen 

18 from domestic energy sources through—

19 (i) production, with consideration of 

20 emissions levels; 

21 (ii) delivery, including transmission by 

22 pipeline and other distribution methods for 

23 hydrogen; and 

24 (iii) storage, including storage in sur25 face transportation vehicles; 
315

•HR 1640 IH 

1 (D) hydrogen for fuel cells, internal com2 bustion engines, and other energy conversion 

3 devices for portable, stationary, and transpor4 tation applications; and 

5 (E) other technologies consistent with the 

6 Department’s plan. 

7 (3) FUEL CELLS.—The goals for fuel cells and 

8 their portable, stationary, and transportation appli9 cations are to enable—

10 (A) safe, economical, and environmentally 

11 sound hydrogen fuel cells; 

12 (B) fuel cells for light duty and other vehi13 cles; and 

14 (C) other technologies consistent with the 

15 Department’s plan. 

16 (c) DEMONSTRATION.—In carrying out the programs 

17 under this section, the Secretary shall fund a limited num18 ber of demonstration projects, consistent with a deter19 mination of the maturity, cost-effectiveness, and environ20 mental impacts of technologies supporting each project. In 

21 selecting projects under this subsection, the Secretary 

22 shall, to the extent practicable and in the public interest, 

23 select projects that—

24 (1) involve using hydrogen and related products 

25 at existing facilities or installations, such as existing 
316

•HR 1640 IH 

1 office buildings, military bases, vehicle fleet centers, 

2 transit bus authorities, or units of the National Park 

3 System; 

4 (2) depend on reliable power from hydrogen to 

5 carry out essential activities; 

6 (3) lead to the replication of hydrogen tech7 nologies and draw such technologies into the market8 place; 

9 (4) include vehicle, portable, and stationary 

10 demonstrations of fuel cell and hydrogen-based en11 ergy technologies; 

12 (5) address the interdependency of demand for 

13 hydrogen fuel cell applications and hydrogen fuel in14 frastructure; 

15 (6) raise awareness of hydrogen technology 

16 among the public; 

17 (7) facilitate identification of an optimum tech18 nology among competing alternatives; 

19 (8) address distributed generation using renew20 able sources; and 

21 (9) address applications specific to rural or re22 mote locations, including isolated villages and is23 lands, the National Park System, and tribal entities. 
317

•HR 1640 IH 

1 The Secretary shall give preference to projects which ad2 dress multiple elements contained in paragraphs (1) 

3 through (9). 

4 (d) DEPLOYMENT.—In carrying out the programs 

5 under this section, the Secretary shall, in partnership with 

6 the private sector, conduct activities to facilitate the de7 ployment of hydrogen energy and energy infrastructure, 

8 fuel cells, and advanced vehicle technologies. 

9 (e) FUNDING.—

10 (1) IN GENERAL.—The Secretary shall carry 

11 out the programs under this section using a competi12 tive, merit-based review process and consistent with 

13 the generally applicable Federal laws and regulations 

14 governing awards of financial assistance, contracts, 

15 or other agreements. 

16 (2) RESEARCH CENTERS.—Activities under this 

17 section may be carried out by funding nationally rec18 ognized university-based or Federal laboratory re19 search centers. 

20 (f) COST SHARING.—

21 (1) RESEARCH AND DEVELOPMENT.—Except as 

22 otherwise provided in this title, for research and de23 velopment programs carried out under this title the 

24 Secretary shall require a commitment from non-Fed25 eral sources of at least 20 percent of the cost of the 
318

•HR 1640 IH 

1 project. The Secretary may reduce or eliminate the 

2 non-Federal requirement under this paragraph if the 

3 Secretary determines that the research and develop4 ment is of a basic or fundamental nature or involves 

5 technical analyses or educational activities. 

6 (2) DEMONSTRATION AND COMMERCIAL APPLI7 CATION.—Except as otherwise provided in this title, 

8 the Secretary shall require at least 50 percent of the 

9 costs directly and specifically related to any dem10 onstration or commercial application project under 

11 this title to be provided from non-Federal sources. 

12 The Secretary may reduce the non-Federal require13 ment under this paragraph if the Secretary deter14 mines that the reduction is necessary and appro15 priate considering the technological risks involved in 

16 the project and is necessary to meet the objectives 

17 of this title. 

18 (3) CALCULATION OF AMOUNT.—In calculating 

19 the amount of the non-Federal commitment under 

20 paragraph (1) or (2), the Secretary may include per21 sonnel, services, equipment, and other resources. 

22 (4) SIZE OF NON-FEDERAL SHARE.—The Sec23 retary may consider the size of the non-Federal 

24 share in selecting projects. 
319

•HR 1640 IH 

1 (g) DISCLOSURE.—Section 623 of the Energy Policy 

2 Act of 1992 (42 U.S.C. 13293) relating to the protection 

3 of information shall apply to projects carried out through 

4 grants, cooperative agreements, or contracts under this 

5 title. 

6 SEC. 804. INTERAGENCY TASK FORCE. 

7 (a) ESTABLISHMENT.—Not later than 120 days after 

8 the date of enactment of this Act, the President shall es9 tablish an interagency task force chaired by the Secretary 

10 with representatives from each of the following: 

11 (1) The Office of Science and Technology Pol12 icy within the Executive Office of the President. 

13 (2) The Department of Transportation. 

14 (3) The Department of Defense. 

15 (4) The Department of Commerce (including 

16 the National Institute of Standards and Tech17 nology). 

18 (5) The Department of State. 

19 (6) The Environmental Protection Agency. 

20 (7) The National Aeronautics and Space Ad21 ministration. 

22 (8) Other Federal agencies as the Secretary de23 termines appropriate. 

24 (b) DUTIES.—
320

•HR 1640 IH 

1 (1) PLANNING.—The interagency task force 

2 shall work toward—

3 (A) a safe, economical, and environ4 mentally sound fuel infrastructure for hydrogen 

5 and hydrogen-carrier fuels, including an infra6 structure that supports buses and other fleet 

7 transportation; 

8 (B) fuel cells in government and other ap9 plications, including portable, stationary, and 

10 transportation applications; 

11 (C) distributed power generation, including 

12 the generation of combined heat, power, and 

13 clean fuels including hydrogen; 

14 (D) uniform hydrogen codes, standards, 

15 and safety protocols; and 

16 (E) vehicle hydrogen fuel system integrity 

17 safety performance. 

18 (2) ACTIVITIES.—The interagency task force 

19 may organize workshops and conferences, may issue 

20 publications, and may create databases to carry out 

21 its duties. The interagency task force shall—

22 (A) foster the exchange of generic, non23 proprietary information and technology among 

24 industry, academia, and government; 
321

•HR 1640 IH 

1 (B) develop and maintain an inventory and 

2 assessment of hydrogen, fuel cells, and other 

3 advanced technologies, including the commercial 

4 capability of each technology for the economic 

5 and environmentally safe production, distribu6 tion, delivery, storage, and use of hydrogen; 

7 (C) integrate technical and other informa8 tion made available as a result of the programs 

9 and activities under this title; 

10 (D) promote the marketplace introduction 

11 of infrastructure for hydrogen fuel vehicles; and 

12 (E) conduct an education program to pro13 vide hydrogen and fuel cell information to po14 tential end-users. 

15 (c) AGENCY COOPERATION.—The heads of all agen16 cies, including those whose agencies are not represented 

17 on the interagency task force, shall cooperate with and 

18 furnish information to the interagency task force, the Ad19 visory Committee, and the Department. 

20 SEC. 805. ADVISORY COMMITTEE. 

21 (a) ESTABLISHMENT.—The Hydrogen Technical and 

22 Fuel Cell Advisory Committee is established to advise the 

23 Secretary on the programs and activities under this title. 

24 (b) MEMBERSHIP.—
322

•HR 1640 IH 

1 (1) MEMBERS.—The Advisory Committee shall 

2 be comprised of not fewer than 12 nor more than 25 

3 members. The members shall be appointed by the 

4 Secretary to represent domestic industry, academia, 

5 professional societies, government agencies, Federal 

6 laboratories, previous advisory panels, and financial, 

7 environmental, and other appropriate organizations 

8 based on the Department’s assessment of the tech9 nical and other qualifications of committee members 

10 and the needs of the Advisory Committee. 

11 (2) TERMS.—The term of a member of the Ad12 visory Committee shall not be more than 3 years. 

13 The Secretary may appoint members of the Advisory 

14 Committee in a manner that allows the terms of the 

15 members serving at any time to expire at spaced in16 tervals so as to ensure continuity in the functioning 

17 of the Advisory Committee. A member of the Advi18 sory Committee whose term is expiring may be re19 appointed. 

20 (3) CHAIRPERSON.—The Advisory Committee 

21 shall have a chairperson, who is elected by the mem22 bers from among their number. 

23 (c) REVIEW.—The Advisory Committee shall review 

24 and make recommendations to the Secretary on—
323

•HR 1640 IH 

1 (1) the implementation of programs and activi2 ties under this title; 

3 (2) the safety, economical, and environmental 

4 consequences of technologies for the production, dis5 tribution, delivery, storage, or use of hydrogen en6 ergy and fuel cells; and 

7 (3) the plan under section 802. 

8 (d) RESPONSE.—

9 (1) CONSIDERATION OF RECOMMENDATIONS.—

10 The Secretary shall consider, but need not adopt, 

11 any recommendations of the Advisory Committee 

12 under subsection (c). 

13 (2) BIENNIAL REPORT.—The Secretary shall 

14 transmit a biennial report to Congress describing 

15 any recommendations made by the Advisory Com16 mittee since the previous report. The report shall in17 clude a description of how the Secretary has imple18 mented or plans to implement the recommendations, 

19 or an explanation of the reasons that a recommenda20 tion will not be implemented. The report shall be 

21 transmitted along with the President’s budget pro22 posal. 

23 (e) SUPPORT.—The Secretary shall provide resources 

24 necessary in the judgment of the Secretary for the Advi-
324

•HR 1640 IH 

1 sory Committee to carry out its responsibilities under this 

2 title. 

3 SEC. 806. EXTERNAL REVIEW. 

4 (a) PLAN.—The Secretary shall enter into an ar5 rangement with the National Academy of Sciences to re6 view the plan prepared under section 802, which shall be 

7 completed not later than 6 months after the Academy re8 ceives the plan. Not later than 45 days after receiving the 

9 review, the Secretary shall transmit the review to Congress 

10 along with a plan to implement the review’s recommenda11 tions or an explanation of the reasons that a recommenda12 tion will not be implemented. 

13 (b) ADDITIONAL REVIEW.—The Secretary shall enter 

14 into an arrangement with the National Academy of 

15 Sciences under which the Academy will review the pro16 grams under section 803 during the fourth year following 

17 the date of enactment of this Act. The Academy’s review 

18 shall include the research priorities and technical mile19 stones, and evaluate the progress toward achieving them. 

20 The review shall be completed not later than 5 years after 

21 the date of enactment of this Act. Not later than 45 days 

22 after receiving the review, the Secretary shall transmit the 

23 review to Congress along with a plan to implement the 

24 review’s recommendations or an explanation for the rea25 sons that a recommendation will not be implemented. 
325

•HR 1640 IH 

1 SEC. 807. MISCELLANEOUS PROVISIONS. 

2 (a) REPRESENTATION.—The Secretary may rep3 resent the United States interests with respect to activities 

4 and programs under this title, in coordination with the 

5 Department of Transportation, the National Institute of 

6 Standards and Technology, and other relevant Federal 

7 agencies, before governments and nongovernmental orga8 nizations including—

9 (1) other Federal, State, regional, and local 

10 governments and their representatives; 

11 (2) industry and its representatives, including 

12 members of the energy and transportation indus13 tries; and 

14 (3) in consultation with the Department of 

15 State, foreign governments and their representatives 

16 including international organizations. 

17 (b) REGULATORY AUTHORITY.—Nothing in this title 

18 shall be construed to alter the regulatory authority of the 

19 Department. 

20 SEC. 808. SAVINGS CLAUSE. 

21 Nothing in this title shall be construed to affect the 

22 authority of the Secretary of Transportation that may 

23 exist prior to the date of enactment of this Act with re24 spect to—

25 (1) research into, and regulation of, hydrogen26 powered vehicles fuel systems integrity, standards, 
326

•HR 1640 IH 

1 and safety under subtitle VI of title 49, United 

2 States Code; 

3 (2) regulation of hazardous materials transpor4 tation under chapter 51 of title 49, United States 

5 Code; 

6 (3) regulation of pipeline safety under chapter 

7 601 of title 49, United States Code; 

8 (4) encouragement and promotion of research, 

9 development, and deployment activities relating to 

10 advanced vehicle technologies under section 5506 of 

11 title 49, United States Code; 

12 (5) regulation of motor vehicle safety under 

13 chapter 301 of title 49, United States Code; 

14 (6) automobile fuel economy under chapter 329 

15 of title 49, United States Code; or 

16 (7) representation of the interests of the United 

17 States with respect to the activities and programs 

18 under the authority of title 49, United States Code. 

19 SEC. 809. AUTHORIZATION OF APPROPRIATIONS. 

20 There are authorized to be appropriated to the Sec21 retary to carry out this title, in addition to any amounts 

22 made available for these purposes under other Acts—

23 (1) $546,000,000 for fiscal year 2006; 

24 (2) $750,000,000 for fiscal year 2007; 

25 (3) $850,000,000 for fiscal year 2008; 
327

•HR 1640 IH 

1 (4) $900,000,000 for fiscal year 2009; and 

2 (5) $1,000,000,000 for fiscal year 2010. 

3 SEC. 810. SOLAR AND WIND TECHNOLOGIES. 

4 (a) SOLAR ENERGY TECHNOLOGIES.—The Secretary 

5 shall—

6 (1) prepare a detailed roadmap for carrying out 

7 the provisions in this subtitle related to solar energy 

8 technologies and for implementing the recommenda9 tions related to solar energy technologies that are in10 cluded in the report transmitted under subsection 

11 (c); 

12 (2) provide for the establishment of 5 projects 

13 in geographic areas that are regionally and climati14 cally diverse to demonstrate the production of hydro15 gen at solar energy facilities, including one dem16 onstration project at a national laboratory or institu17 tion of higher education; 

18 (3) establish a research and development pro19 gram—

20 (A) to develop optimized concentrating 

21 solar power devices that may be used for the 

22 production of both electricity and hydrogen; and 

23 (B) to evaluate the use of thermochemical 

24 cycles for hydrogen production at the tempera-
328

•HR 1640 IH 

1 tures attainable with concentrating solar power 

2 devices; 

3 (4) coordinate with activities sponsored by the 

4 Department of Energy’s Office of Nuclear Energy, 

5 Science, and Technology on high-temperature mate6 rials, thermochemical cycles, and economic issues re7 lated to solar energy; 

8 (5) provide for the construction and operation 

9 of new concentrating solar power devices or solar 

10 power cogeneration facilities that produce hydrogen 

11 either concurrently with, or independently of, the 

12 production of electricity; 

13 (6) support existing facilities and research pro14 grams dedicated to the development and advance15 ment of concentrating solar power devices; and 

16 (7) establish a program—

17 (A) to research and develop methods that 

18 use electricity from photovoltaic devices for the 

19 onsite production of hydrogen, such that no in20 termediate transmission or distribution infra21 structure is required or used and future de22 mand growth may be accommodated; 

23 (B) to evaluate the economics of small24 scale electrolysis for hydrogen production; and 
329

•HR 1640 IH 

1 (C) to research the potential of modular 

2 photovoltaic devices for the development of a 

3 hydrogen infrastructure, the security implica4 tions of a hydrogen infrastructure, and the ben5 efits potentially derived from a hydrogen infra6 structure. 

7 (b) WIND ENERGY TECHNOLOGIES.—The Secretary 

8 shall—

9 (1) prepare a detailed roadmap for carrying out 

10 the provisions in this subtitle related to wind energy 

11 technologies and for implementing the recommenda12 tions related to wind energy technologies that are in13 cluded in the report transmitted under subsection 

14 (c); and 

15 (2) provide for the establishment of 5 projects 

16 in geographic areas that are regionally and climati17 cally diverse to demonstrate the production of hydro18 gen at existing wind energy facilities, including one 

19 demonstration project at a national laboratory or in20 stitution of higher education. 

21 (c) PROGRAM SUPPORT.—The Secretary shall sup22 port research programs at institutions of higher education 

23 for the development of solar energy technologies and wind 

24 energy technologies for the production of hydrogen. The 
330

•HR 1640 IH 

1 research programs supported under this subsection 

2 shall—

3 (1) enhance fellowship and faculty assistance 

4 programs; 

5 (2) provide support for fundamental research; 

6 (3) encourage collaborative research among in7 dustry, national laboratories, and institutions of 

8 higher education; 

9 (4) support communication and outreach; and 

10 (5) to the greatest extent possible—

11 (A) be located in geographic areas that are 

12 regionally and climatically diverse; and 

13 (B) be located at part B institutions, mi14 nority institutions, and institutions of higher 

15 education located in States participating in the 

16 Experimental Program to Stimulate Competi17 tive Research of the Department of Energy. 

18 (d) INSTITUTIONS OF HIGHER EDUCATION AND NA19 TIONAL LABORATORY INTERACTIONS.—In conjunction 

20 with the programs supported under this section, the Sec21 retary shall develop sabbatical, fellowship, and visiting sci22 entist programs to encourage national laboratories and in23 stitutions of higher education to share and exchange per24 sonnel. 

25 (e) DEFINITIONS.—For purposes of this section—
331

•HR 1640 IH 

1 (1) the term ‘‘concentrating solar power de2 vices’’ means devices that concentrate the power of 

3 the sun by reflection or refraction to improve the ef4 ficiency of a photovoltaic or thermal generation proc5 ess; 

6 (2) the term ‘‘institution of higher education’’ 

7 has the meaning given to that term in section 

8 101(a) of the Higher Education Act of 1965 (20 

9 U.S.C. 1001(a)); 

10 (3) the term ‘‘minority institution’’ has the 

11 meaning given to that term in section 365 of the 

12 Higher Education Act of 1965 (20 U.S.C. 1067k); 

13 (4) the term ‘‘part B institution’’ has the mean14 ing given to that term in section 322 of the Higher 

15 Education Act of 1965 (20 U.S.C. 1061); and 

16 (5) the term ‘‘photovoltaic devices’’ means de17 vices that convert light directly into electricity 

18 through a solid-state, semiconductor process. 

19 TITLE IX—STUDIES AND 

20 PROGRAM SUPPORT 

21 SEC. 901. GOALS. 

22 (a) IN GENERAL.—The Secretary shall conduct a bal23 anced set of programs of study to support Federal energy 

24 policy and programs by the Department. Such programs 

25 shall be focused on— 
332

•HR 1640 IH 

1 (1) increasing the efficiency of all energy inten2 sive sectors through conservation and improved tech3 nologies; 

4 (2) promoting diversity of energy supply; 

5 (3) decreasing the Nation’s dependence on for6 eign energy supplies; 

7 (4) improving United States energy security; 

8 and 

9 (5) decreasing the environmental impact of en10 ergy-related activities. 

11 (b) GOALS.—The Secretary shall publish measurable 

12 5-year cost and performance-based goals with each annual 

13 budget submission in at least the following areas: 

14 (1) Energy efficiency for buildings, energy-con15 suming industries, and vehicles. 

16 (2) Electric energy generation (including dis17 tributed generation), transmission, and storage. 

18 (3) Renewable energy technologies including 

19 wind power, photovoltaics, solar thermal systems, 

20 geothermal energy, hydrogen-fueled systems, bio21 mass-based systems, biofuels, and hydropower. 

22 (4) Fossil energy including power generation, 

23 onshore and offshore oil and gas resource recovery, 

24 and transportation. 
333

•HR 1640 IH 

1 (5) Nuclear energy including programs for ex2 isting and advanced reactors and education of future 

3 specialists. 

4 (c) PUBLIC COMMENT.—The Secretary shall provide 

5 mechanisms for input on the annually published goals 

6 from industry, university, and other public sources. 

7 (d) EFFECT OF GOALS.—

8 (1) NO NEW AUTHORITY OR REQUIREMENT.—

9 Nothing in subsection (a) or the annually published 

10 goals shall—

11 (A) create any new—

12 (i) authority for any Federal agency; 

13 or 

14 (ii) requirement for any other person; 

15 (B) be used by a Federal agency to sup16 port the establishment of regulatory standards 

17 or regulatory requirements; or 

18 (C) alter the authority of the Secretary to 

19 make grants or other awards. 

20 (2) NO LIMITATION.—Nothing in this sub21 section shall be construed to limit the authority of 

22 the Secretary to impose conditions on grants or 

23 other awards based on the goals in subsection (a) or 

24 any subsequent modification thereto. 
334

•HR 1640 IH 

1 SEC. 902. DEFINITIONS. 

2 For purposes of this title: 

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

4 means the Department of Energy. 

5 (2) DEPARTMENTAL MISSION.—The term ‘‘de6 partmental mission’’ means any of the functions 

7 vested in the Secretary of Energy by the Depart8 ment of Energy Organization Act (42 U.S.C. 7101 

9 et seq.) or other law. 

10 (3) INSTITUTION OF HIGHER EDUCATION.—The 

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

12 meaning given that term in section 101(a) of the 

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

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

15 the Secretary of Energy. 

16 Subtitle A—Energy Efficiency 

17 SEC. 904. ENERGY EFFICIENCY. 

18 (a) IN GENERAL.—The following sums are author19 ized to be appropriated to the Secretary for energy effi20 ciency and conservation activities, including activities au21 thorized under this subtitle: 

22 (1) For fiscal year 2006, $616,000,000. 

23 (2) For fiscal year 2007, $695,000,000. 

24 (3) For fiscal year 2008, $772,000,000. 

25 (4) For fiscal year 2009, $865,000,000. 

26 (5) For fiscal year 2010, $920,000,000. 
335

•HR 1640 IH 

1 (b) ALLOCATIONS.—From amounts authorized under 

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

3 (1) For activities under section 905—

4 (A) for fiscal year 2006, $20,000,000; 

5 (B) for fiscal year 2007, $30,000,000; 

6 (C) for fiscal year 2008, $50,000,000; 

7 (D) for fiscal year 2009, $50,000,000; and 

8 (E) for fiscal year 2010, $50,000,000. 

9 (2) For activities under section 907—

10 (A) for fiscal year 2006, $4,000,000; and 

11 (B) for each of fiscal years 2007 through 

12 2010, $7,000,000. 

13 (3) For activities under section 908—

14 (A) for fiscal year 2006, $20,000,000; 

15 (B) for fiscal year 2007, $25,000,000; 

16 (C) for fiscal year 2008, $30,000,000; 

17 (D) for fiscal year 2009, $35,000,000; and 

18 (E) for fiscal year 2010, $40,000,000. 

19 (4) For activities under section 909, 

20 $2,000,000 for each of fiscal years 2007 through 

21 2010. 

22 (c) EXTENDED AUTHORIZATION.—There are author23 ized to be appropriated to the Secretary for activities 

24 under section 905, $50,000,000 for each of fiscal years 

25 2011 through 2015. 
336

•HR 1640 IH 

1 (d) LIMITATION ON USE OF FUNDS.—None of the 

2 funds authorized to be appropriated under this section 

3 may be used for—

4 (1) the issuance and implementation of energy 

5 efficiency regulations; 

6 (2) the Weatherization Assistance Program 

7 under part A of title IV of the Energy Conservation 

8 and Production Act (42 U.S.C. 6861 et seq.); 

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

10 title III of the Energy Policy and Conservation Act 

11 (42 U.S.C. 6321 et seq.); or 

12 (4) the Federal Energy Management Program 

13 under part 3 of title V of the National Energy Con14 servation Policy Act (42 U.S.C. 8251 et seq.). 

15 SEC. 905. NEXT GENERATION LIGHTING INITIATIVE. 

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

17 Next Generation Lighting Initiative in accordance with 

18 this section to support activities related to advanced solid19 state lighting technologies based on white light emitting 

20 diodes. 

21 (b) OBJECTIVES.—The objectives of the initiative 

22 shall be to develop advanced solid-state organic and inor23 ganic lighting technologies based on white light emitting 

24 diodes that, compared to incandescent and fluorescent 

25 lighting technologies, are longer lasting; more energy-effi-
337

•HR 1640 IH 

1 cient; and cost-competitive, and have less environmental 

2 impact. 

3 (c) INDUSTRY ALLIANCE.—The Secretary shall, not 

4 later than 3 months after the date of enactment of this 

5 section, competitively select an Industry Alliance to rep6 resent participants that are private, for-profit firms which, 

7 as a group, are broadly representative of United States 

8 solid state lighting expertise as a whole. 

9 (d) STUDY.—

10 (1) IN GENERAL.—The Secretary shall carry 

11 out the activities of the Next Generation Lighting 

12 Initiative through competitively awarded grants, in13 cluding to Industry Alliance participants, National 

14 Laboratories, and institutions of higher education. 

15 (2) ASSISTANCE FROM THE INDUSTRY ALLI16 ANCE.—The Secretary shall annually solicit from the 

17 Industry Alliance—

18 (A) comments to identify solid-state light19 ing technology needs; 

20 (B) assessment of the progress of the Ini21 tiative’s research activities; and 

22 (C) assistance in annually updating solid23 state lighting technology roadmaps. 

24 (3) AVAILABILITY OF INFORMATION AND ROAD25 MAPS.—The information and roadmaps under para-
338

•HR 1640 IH 

1 graph (2) shall be available to the public and public 

2 response shall be solicited by the Secretary. 

3 (e) INTELLECTUAL PROPERTY.—The Secretary may 

4 require, in accordance with the authorities provided in sec5 tion 202(a)(ii) of title 35, United States Code, section 152 

6 of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 

7 section 9 of the Federal Nonnuclear Energy Research and 

8 Development Act of 1974 (42 U.S.C. 5908), that—

9 (1) for any new invention resulting from activi10 ties under subsection (d)—

11 (A) the Industry Alliance members that 

12 are active participants in research, development, 

13 and demonstration activities related to the ad14 vanced solid-state lighting technologies that are 

15 the subject of this section shall be granted first 

16 option to negotiate with the invention owner 

17 nonexclusive licenses and royalties for uses of 

18 the invention related to solid-state lighting on 

19 terms that are reasonable under the cir20 cumstances; and 

21 (B)(i) for 1 year after a United States pat22 ent is issued for the invention, the patent hold23 er shall not negotiate any license or royalty 

24 with any entity that is not a participant in the 
339

•HR 1640 IH 

1 Industry Alliance described in subparagraph 

2 (A); and 

3 (ii) during the year described in clause (i), 

4 the invention owner shall negotiate nonexclusive 

5 licenses and royalties in good faith with any in6 terested participant in the Industry Alliance de7 scribed in subparagraph (A); and 

8 (2) such other terms as the Secretary deter9 mines are required to promote accelerated commer10 cialization of inventions made under the Initiative. 

11 (f) NATIONAL ACADEMY REVIEW.—The Secretary 

12 shall enter into an arrangement with the National Acad13 emy of Sciences to conduct periodic reviews of the Next 

14 Generation Lighting Initiative. The Academy shall review 

15 the priorities, technical milestones, and plans for tech16 nology transfer and progress towards achieving them. The 

17 Secretary shall consider the results of such reviews in eval18 uating the information obtained under subsection (d)(2). 

19 (g) DEFINITIONS.—As used in this section: 

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

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

22 semiconducting device package and delivery system 

23 that produces white light using externally applied 

24 voltage. 
340

•HR 1640 IH 

1 (2) INDUSTRY ALLIANCE.—The term ‘‘Industry 

2 Alliance’’ means an entity selected by the Secretary 

3 under subsection (c). 

4 (3) WHITE LIGHT EMITTING DIODE.—The term 

5 ‘‘white light emitting diode’’ means a 

6 semiconducting package, utilizing either organic or 

7 inorganic materials, that produces white light using 

8 externally applied voltage. 

9 SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE. 

10 (a) INTERAGENCY GROUP.—Not later than 90 days 

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

12 establish an interagency group to develop, in coordination 

13 with the advisory committee established under subsection 

14 (e), a National Building Performance Initiative (in this 

15 section referred to as the ‘‘Initiative’’). The interagency 

16 group shall be co-chaired by appropriate officials of the 

17 Department and the Department of Commerce, who shall 

18 jointly arrange for the provision of necessary administra19 tive support to the group. 

20 (b) INTEGRATION OF EFFORTS.—The Initiative, 

21 working with the National Institute of Building Sciences, 

22 shall integrate Federal, State, and voluntary private sector 

23 efforts to reduce the costs of construction, operation, 

24 maintenance, and renovation of commercial, industrial, in25 stitutional, and residential buildings. 
341

•HR 1640 IH 

1 (c) DEPARTMENT OF ENERGY ROLE.—Within the 

2 Federal portion of the Initiative, the Department shall be 

3 the lead agency for all aspects of building performance re4 lated to use and conservation of energy. 

5 (d) ADVISORY COMMITTEE.—

6 (1) ESTABLISHMENT.—The Secretary, in con7 sultation with the Secretary of Commerce and the 

8 Director of the Office of Science and Technology 

9 Policy, shall establish an advisory committee to—

10 (A) analyze and provide recommendations 

11 on potential private sector roles and participa12 tion in the Initiative; and 

13 (B) review and provide recommendations 

14 on the plan described in subsection (c). 

15 (2) MEMBERSHIP.—Membership of the advisory 

16 committee shall include representatives with a broad 

17 range of appropriate expertise, including expertise 

18 in—

19 (A) building technology; 

20 (B) architecture, engineering, and building 

21 materials and systems; and 

22 (C) the residential, commercial, and indus23 trial sectors of the construction industry. 
342

•HR 1640 IH 

1 (e) CONSTRUCTION.—Nothing in this section pro2 vides any Federal agency with new authority to regulate 

3 building performance. 

4 SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE 

5 PROGRAM. 

6 (a) DEFINITIONS.—For purposes of this section: 

7 (1) ASSOCIATED EQUIPMENT.—The term ‘‘asso8 ciated equipment’’ means equipment located where 

9 the batteries will be used that is necessary to enable 

10 the use of the energy stored in the batteries. 

11 (2) BATTERY.—The term ‘‘battery’’ means an 

12 energy storage device that previously has been used 

13 to provide motive power in a vehicle powered in 

14 whole or in part by electricity. 

15 (b) PROGRAM.—The Secretary shall establish and 

16 conduct a program of study for the secondary use of bat17 teries if the Secretary finds that there are sufficient num18 bers of such batteries to support the program. The pro19 gram shall be—

20 (1) designed to demonstrate the use of batteries 

21 in secondary applications, including utility and com22 mercial power storage and power quality; 

23 (2) structured to evaluate the performance, in24 cluding useful service life and costs, of such bat25 teries in field operations, and the necessary sup-
343

•HR 1640 IH 

1 porting infrastructure, including reuse and disposal 

2 of batteries; and 

3 (3) coordinated with ongoing secondary battery 

4 use programs at the National Laboratories and in 

5 industry. 

6 (c) SOLICITATION.—Not later than 180 days after 

7 the date of enactment of this Act, if the Secretary finds 

8 under subsection (b) that there are sufficient numbers of 

9 batteries to support the program, the Secretary shall so10 licit proposals to demonstrate the secondary use of bat11 teries and associated equipment and supporting infra12 structure in geographic locations throughout the United 

13 States. The Secretary may make additional solicitations 

14 for proposals if the Secretary determines that such solici15 tations are necessary to carry out this section. 

16 (d) SELECTION OF PROPOSALS.—

17 (1) IN GENERAL.—The Secretary shall, not 

18 later than 90 days after the closing date established 

19 by the Secretary for receipt of proposals under sub20 section (c), select up to 5 proposals which may re21 ceive financial assistance under this section, subject 

22 to the availability of appropriations. 

23 (2) DIVERSITY; ENVIRONMENTAL EFFECT.—In 

24 selecting proposals, the Secretary shall consider di25 versity of battery type, geographic and climatic di-
344

•HR 1640 IH 

1 versity, and life-cycle environmental effects of the 

2 approaches. 

3 (3) LIMITATION.—No 1 project selected under 

4 this section shall receive more than 25 percent of the 

5 funds authorized for the program under this section. 

6 (4) OPTIMIZATION OF FEDERAL RESOURCES.—

7 The Secretary shall consider the extent of involve8 ment of State or local government and other persons 

9 in each demonstration project to optimize use of 

10 Federal resources. 

11 (5) OTHER CRITERIA.—The Secretary may con12 sider such other criteria as the Secretary considers 

13 appropriate. 

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

15 (1) relevant information be provided to the De16 partment, the users of the batteries, the proposers, 

17 and the battery manufacturers; 

18 (2) the proposer provide at least 50 percent of 

19 the costs associated with the proposal; and 

20 (3) the proposer provide to the Secretary such 

21 information regarding the disposal of the batteries 

22 as the Secretary may require to ensure that the pro23 poser disposes of the batteries in accordance with 

24 applicable law. 
345

•HR 1640 IH 

1 SEC. 908. ENERGY EFFICIENCY STUDY INITIATIVE. 

2 (a) ESTABLISHMENT.—The Secretary shall establish 

3 an Energy Efficiency Science Initiative to be managed by 

4 the Assistant Secretary in the Department with responsi5 bility for energy conservation under section 203(a)(9) of 

6 the Department of Energy Organization Act (42 U.S.C. 

7 7133(a)(9)), in consultation with the Director of the Of8 fice of Science, for grants to be competitively awarded and 

9 subject to peer review for studies relating to energy effi10 ciency. 

11 (b) REPORT.—The Secretary shall submit to Con12 gress, along with the President’s annual budget request 

13 under section 1105(a) of title 31, United States Code, a 

14 report on the activities of the Energy Efficiency Science 

15 Initiative, including a description of the process used to 

16 award the funds and an explanation of how the studies 

17 relate to energy efficiency. 

18 SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY. 

19 The Secretary shall conduct a program of study on 

20 advanced control devices to improve the energy efficiency 

21 of electric motors used in heating, ventilation, air condi22 tioning, and comparable systems. 
346

•HR 1640 IH 

1 Subtitle B—Distributed Energy and 

2 Electric Energy Systems 

3 SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 

4 SYSTEMS. 

5 (a) IN GENERAL.—The following sums are author6 ized to be appropriated to the Secretary for distributed 

7 energy and electric energy systems activities, including ac8 tivities authorized under this subtitle: 

9 (1) For fiscal year 2006, $190,000,000. 

10 (2) For fiscal year 2007, $200,000,000. 

11 (3) For fiscal year 2008, $220,000,000. 

12 (4) For fiscal year 2009, $240,000,000. 

13 (5) For fiscal year 2010, $260,000,000. 

14 (b) MICRO-COGENERATION ENERGY TECH15 NOLOGY.—From amounts authorized under subsection 

16 (a), $20,000,000 for each of fiscal years 2006 and 2007 

17 is authorized for activities under section 914. 

18 SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM. 

19 The Secretary shall establish a comprehensive pro20 gram of study to improve energy efficiency of high power 

21 density facilities, including data centers, server farms, and 

22 telecommunications facilities. Such program shall consider 

23 technologies that provide significant improvement in ther24 mal controls, metering, load management, peak load re25 duction, or the efficient cooling of electronics. 
347

•HR 1640 IH 

1 SEC. 916. RECIPROCATING POWER. 

2 The Secretary shall conduct a program of study re3 garding fuel system optimization and emissions reduction 

4 after-treatment technologies for industrial reciprocating 

5 engines. Such after-treatment technologies shall use proc6 esses that reduce emissions by recirculating exhaust gases 

7 and shall be designed to be retrofitted to any new or exist8 ing diesel or natural gas engine used for power generation, 

9 peaking power generation, combined heat and power, or 

10 compression. 

11 SEC. 917. ADVANCED PORTABLE POWER DEVICES. 

12 (a) PROGRAM.—The Secretary shall—

13 (1) establish a program to develop working 

14 models of small scale portable power devices; and 

15 (2) to the fullest extent practicable, identify and 

16 utilize the resources of universities that have shown 

17 expertise with respect to advanced portable power 

18 devices for either civilian or military use. 

19 (b) ORGANIZATION.—The universities identified and 

20 utilized under subsection (a)(2) are authorized to establish 

21 an organization to promote small scale portable power de22 vices. 

23 (c) DEFINITION.—For purposes of this section, the 

24 term ‘‘small scale portable power device’’ means a field 

25 deployable portable mechanical or electromechanical device 

26 that can be used for applications such as communications, 
348

•HR 1640 IH 

1 computation, mobility enhancement, weapons systems, op2 tical devices, cooling, sensors, medical devices and active 

3 biological agent detection systems. 

4 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

5 are authorized to be appropriated to the Secretary for car6 rying out this section $8,000,000 for the period encom7 passing fiscal years 2006 through 2010. 

8 Subtitle C—Renewable Energy 

9 SEC. 918. RENEWABLE ENERGY. 

10 (a) IN GENERAL.—The following sums are author11 ized to be appropriated to the Secretary for renewable en12 ergy activities, including activities authorized under this 

13 subtitle: 

14 (1) For fiscal year 2006, $480,000,000. 

15 (2) For fiscal year 2007, $550,000,000. 

16 (3) For fiscal year 2008, $610,000,000. 

17 (4) For fiscal year 2009, $659,000,000. 

18 (5) For fiscal year 2010, $710,000,000. 

19 (b) BIOENERGY.—From the amounts authorized 

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

21 to be appropriated to carry out section 919: 

22 (1) For fiscal year 2006, $135,425,000. 

23 (2) For fiscal year 2007, $155,600,000. 

24 (3) For fiscal year 2008, $167,650,000. 

25 (4) For fiscal year 2009, $180,000,000. 
349

•HR 1640 IH 

1 (5) For fiscal year 2010, $192,000,000. 

2 (c) CONCENTRATING SOLAR POWER.—From 

3 amounts authorized under subsection (a), the following 

4 sums are authorized to be appropriated to carry out sec5 tion 920: 

6 (1) For fiscal year 2006, $20,000,000. 

7 (2) For fiscal year 2007, $40,000,000. 

8 (3) For each of fiscal years 2008, 2009, and 

9 2010, $50,000,000. 

10 (d) PUBLIC BUILDINGS.—From the amounts author11 ized under subsection (a), $30,000,000 for each of the fis12 cal years 2006 through 2010 are authorized to be appro13 priated to carry out section 922. 

14 (e) LIMITS ON USE OF FUNDS.—

15 (1) NO FUNDS FOR RENEWABLE SUPPORT AND

16 IMPLEMENTATION.—None of the funds authorized to 

17 be appropriated under this section may be used for 

18 Renewable Support and Implementation. 

19 (2) GRANTS.—Of the funds authorized under 

20 subsection (b), not less than $5,000,000 for each fis21 cal year shall be made available for grants to His22 torically Black Colleges and Universities, Tribal Col23 leges, and Hispanic-Serving Institutions. 

24 (3) REGIONAL FIELD VERIFICATION PRO25 GRAM.—Of the funds authorized under subsection 
350

•HR 1640 IH 

1 (a), not less than $4,000,000 for each fiscal year 

2 shall be made available for the Regional Field 

3 Verification Program of the Department. 

4 (4) OFF-STREAM PUMPED STORAGE HYDRO5 POWER.—Of the funds authorized under subsection 

6 (a), such sums as may be necessary shall be made 

7 available for demonstration projects of off-stream 

8 pumped storage hydropower. 

9 (f) CONSULTATION.—In carrying out this subtitle, 

10 the Secretary, in consultation with the Secretary of Agri11 culture, shall demonstrate the use of advanced wind power 

12 technology, including combined use with coal gasification; 

13 biomass; geothermal energy systems; and other renewable 

14 energy technologies to assist in delivering electricity to 

15 rural and remote locations. 

16 SEC. 919. BIOENERGY PROGRAMS. 

17 (a) DEFINITIONS.—For the purposes of this section: 

18 (1) The term ‘‘agricultural byproducts’’ in19 cludes waste products, including poultry fat and 

20 poultry waste. 

21 (2) The term ‘‘cellulosic biomass’’ means any 

22 portion of a crop containing lignocellulose or hemi23 cellulose, including barley grain, grapeseed, forest 

24 thinnings, rice bran, rice hulls, rice straw, soybean 

25 matter, and sugarcane bagasse, or any crop grown 
351

•HR 1640 IH 

1 specifically for the purpose of producing cellulosic 

2 feedstocks. 

3 (b) PROGRAM.—The Secretary shall conduct a pro4 gram of study for bioenergy, including—

5 (1) biopower energy systems; 

6 (2) biofuels; 

7 (3) bio-based products; 

8 (4) integrated biorefineries that may produce 

9 biopower, biofuels, and bio-based products; 

10 (5) cross-cutting research and development in 

11 feedstocks and enzymes; and 

12 (6) economic analysis. 

13 (c) BIOFUELS AND BIO-BASED PRODUCTS.—The 

14 goals of the biofuels and bio-based products programs 

15 shall be to promote, in partnership with industry—

16 (1) advanced biochemical and thermochemical 

17 conversion technologies capable of making biofuels 

18 that are price-competitive with gasoline or diesel in 

19 either internal combustion engines or fuel cell-pow20 ered vehicles, and bio-based products from a variety 

21 of feedstocks, including grains, cellulosic biomass, 

22 and other agricultural byproducts; and 

23 (2) advanced biotechnology processes capable of 

24 making biofuels and bio-based products with empha-
352

•HR 1640 IH 

1 sis on development of biorefinery technologies using 

2 enzyme-based processing systems. 

3 SEC. 920. CONCENTRATING SOLAR POWER STUDY PRO4 GRAM. 

5 (a) IN GENERAL.—The Secretary shall conduct a 

6 program of study to evaluate the potential of concen7 trating solar power for hydrogen production, including co8 generation approaches for both hydrogen and electricity. 

9 Such program shall take advantage of existing facilities 

10 to the extent possible and shall include—

11 (1) development of optimized technologies that 

12 are common to both electricity and hydrogen produc13 tion; 

14 (2) evaluation of thermochemical cycles for hy15 drogen production at the temperatures attainable 

16 with concentrating solar power; 

17 (3) evaluation of materials issues for the 

18 thermochemical cycles described in paragraph (2); 

19 (4) system architectures and economics studies; 

20 and 

21 (5) coordination with activities in the Advanced 

22 Reactor Hydrogen Cogeneration Project on high 

23 temperature materials, thermochemical cycles, and 

24 economic issues. 
353

•HR 1640 IH 

1 (b) ASSESSMENT.—In carrying out the program 

2 under this section, the Secretary shall—

3 (1) assess conflicting guidance on the economic 

4 potential of concentrating solar power for electricity 

5 production received from the National Research 

6 Council report entitled ‘‘Renewable Power Pathways: 

7 A Review of the U.S. Department of Energy’s Re8 newable Energy Programs’’ in 2000 and subsequent 

9 Department-funded reviews of that report; and 

10 (2) provide an assessment of the potential im11 pact of the technology before, or concurrent with, 

12 submission of the fiscal year 2008 budget. 

13 (c) REPORT.—Not later than 5 years after the date 

14 of enactment of this Act, the Secretary shall provide a re15 port to Congress on the economic and technical potential 

16 for electricity or hydrogen production, with or without co17 generation, with concentrating solar power. 

18 SEC. 921. MISCELLANEOUS PROJECTS. 

19 The Secretary may conduct studies for—

20 (1) ocean energy, including wave energy; and 

21 (2) the combined use of renewable energy tech22 nologies with one another and with other energy 

23 technologies, including the combined use of wind 

24 power and coal gasification technologies. 
354

•HR 1640 IH 

1 SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS. 

2 (a) TECHNOLOGY TRANSFER PROGRAM.—The Sec3 retary shall establish a program for the transfer of innova4 tive technologies for solar and other renewable energy 

5 sources in buildings owned or operated by a State or local 

6 government, and for the dissemination of information re7 sulting from an assessment of such program to interested 

8 parties. 

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

10 shall provide under this section no more than 40 percent 

11 of the incremental costs of the solar or other renewable 

12 energy source project funded. 

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

14 awards under this section, the Secretary shall require all 

15 applicants—

16 (1) to demonstrate a continuing commitment to 

17 the use of solar and other renewable energy sources 

18 in buildings they own or operate; and 

19 (2) to state how they expect any award to fur20 ther their transition to the significant use of renew21 able energy. 

22 SEC. 923. UNIVERSITY BIODIESEL PROGRAM. 

23 (a) IN GENERAL.—The Secretary shall establish a 

24 program regarding the feasibility of the operation of diesel 

25 electric power generators, using biodiesel fuels, with rat-
355

•HR 1640 IH 

1 ings as high as B100 at a university electric generation 

2 facility. The program shall examine—

3 (1) heat rates of diesel fuels with large quan4 tities of cellulosic content; 

5 (2) the reliability of operation of various fuel 

6 blends; 

7 (3) performance in cold or freezing weather; 

8 (4) stability of fuel after extended storage; and 

9 (5) other criteria, as determined by the Sec10 retary. 

11 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

12 are authorized to be appropriated to the Secretary 

13 $400,000 to carry out subsection (a). Such funds shall re14 main available until expended. 

15 Subtitle D—Nuclear Energy 

16 SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE 

17 SOURCES. 

18 (a) STUDY.—The Secretary shall conduct a study and 

19 provide a report to Congress not later than August 1, 

20 2006. The study shall—

21 (1) survey industrial applications of large radio22 active sources, including well-logging sources; 

23 (2) review current domestic and international 

24 Department, Department of Defense, Department of 
356

•HR 1640 IH 

1 State, and commercial programs to manage and dis2 pose of radioactive sources; 

3 (3) discuss disposal options and practices for 

4 currently deployed or future sources and, if defi5 ciencies are noted in existing disposal options or 

6 practices for either deployed or future sources, rec7 ommend options to remedy deficiencies; and 

8 (4) develop a program plan for research and de9 velopment to develop alternatives to large industrial 

10 sources that reduce safety, environmental, or pro11 liferation risks to either workers using the sources or 

12 the public. 

13 (b) PROGRAM.—The Secretary shall establish a re14 search and development program to implement the pro15 gram plan developed under subsection (a)(4). The pro16 gram shall include miniaturized particle accelerators for 

17 well-logging or other industrial applications and portable 

18 accelerators for production of short-lived radioactive mate19 rials at an industrial site. 

20 SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL. 

21 The Secretary shall conduct a study to determine the 

22 feasibility of deep borehole disposal of spent nuclear fuel 

23 and high-level radioactive waste. The study shall empha24 size geological, chemical, and hydrological characterization 

25 of, and design of engineered structures for, deep borehole 
357

•HR 1640 IH 

1 environments. Not later than 1 year after the date of en2 actment of this Act, the Secretary shall transmit the study 

3 to Congress. 

4 Subtitle E—Fossil Energy 

5 PART I—STUDIES AND PROGRAM SUPPORT 

6 SEC. 931. FOSSIL ENERGY. 

7 (a) IN GENERAL.—The following sums are author8 ized to be appropriated to the Secretary for fossil energy 

9 activities, including activities authorized under this part: 

10 (1) For fiscal year 2006, $530,000,000. 

11 (2) For fiscal year 2007, $556,000,000. 

12 (3) For fiscal year 2008, $583,000,000. 

13 (4) For fiscal year 2009, $611,000,000. 

14 (5) For fiscal year 2010, $626,000,000. 

15 (b) ALLOCATIONS.—From amounts authorized under 

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

17 (1) For activities under section 932(b)(2), 

18 $28,000,000 for each of the fiscal years 2006 

19 through 2010. 

20 (2) For activities under section 934—

21 (A) for fiscal year 2006, $12,000,000; 

22 (B) for fiscal year 2007, $15,000,000; and 

23 (C) for each of fiscal years 2008 through 

24 2010, $20,000,000. 

25 (3) For activities under section 935—
358

•HR 1640 IH 

1 (A) for fiscal year 2006, $259,000,000; 

2 (B) for fiscal year 2007, $272,000,000; 

3 (C) for fiscal year 2008, $285,000,000; 

4 (D) for fiscal year 2009, $298,000,000; 

5 and 

6 (E) for fiscal year 2010, $308,000,000. 

7 (4) For the Office of Arctic Energy under sec8 tion 3197 of the Floyd D. Spence National Defense 

9 Authorization Act for Fiscal Year 2001 (42 U.S.C. 

10 7144d), $25,000,000 for each of fiscal years 2006 

11 through 2010. 

12 (5) For activities under section 933, 

13 $4,000,000 for fiscal year 2006 and $2,000,000 for 

14 each of fiscal years 2007 through 2010. 

15 (c) EXTENDED AUTHORIZATION.—There are author16 ized to be appropriated to the Secretary for the Office of 

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

18 National Defense Authorization Act for Fiscal Year 2001 

19 (42 U.S.C. 7144d), $25,000,000 for each of fiscal years 

20 2009 through 2012. 

21 (d) LIMITS ON USE OF FUNDS.—

22 (1) NO FUNDS FOR CERTAIN PROGRAMS.—None 

23 of the funds authorized under this section may be 

24 used for Fossil Energy Environmental Restoration 

25 or Import/Export Authorization. 
359

•HR 1640 IH 

1 (2) INSTITUTIONS OF HIGHER EDUCATION.—Of 

2 the funds authorized under subsection (b)(2), not 

3 less than 20 percent of the funds appropriated for 

4 each fiscal year shall be dedicated to activities car5 ried out at institutions of higher education. 

6 SEC. 932. OIL AND GAS STUDIES. 

7 (a) OIL AND GAS STUDIES.—The Secretary shall 

8 conduct a program of studies on oil and gas, including—

9 (1) exploration and production; 

10 (2) gas hydrates; 

11 (3) reservoir life and extension; 

12 (4) transportation and distribution infrastruc13 ture; 

14 (5) ultraclean fuels; 

15 (6) heavy oil and oil shale; 

16 (7) related environmental research; and 

17 (8) compressed natural gas marine transport. 

18 (b) FUEL CELLS.—

19 (1) IN GENERAL.—The Secretary shall conduct 

20 a program of studies on fuel cells for low-cost, high21 efficiency, fuel-flexible, modular power systems. 

22 (2) IMPROVED MANUFACTURING PRODUCTION

23 AND PROCESSES.—The studies under paragraph (1) 

24 shall include fuel cell technology for commercial, res25 idential, and transportation applications, and distrib-
360

•HR 1640 IH 

1 uted generation systems, utilizing improved manu2 facturing production and processes. 

3 (c) NATURAL GAS AND OIL DEPOSITS REPORT.—

4 Not later than 2 years after the date of enactment of this 

5 Act, and every 2 years thereafter, the Secretary of the In6 terior, in consultation with other appropriate Federal 

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

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

9 and undiscovered resources in Federal and State waters 

10 off the coast of Louisiana and Texas. 

11 (d) INTEGRATED CLEAN POWER AND ENERGY.—

12 (1) NATIONAL CENTER OR CONSORTIUM OF EX13 CELLENCE.—The Secretary shall establish a na14 tional center or consortium of excellence in clean en15 ergy and power generation to address the Nation’s 

16 critical dependence on energy and the need to reduce 

17 emissions. 

18 (2) PROGRAM.—The center or consortium shall 

19 conduct a program integrating the following focus 

20 areas: 

21 (A) Efficiency and reliability of gas tur22 bines for power generation. 

23 (B) Reduction in emissions from power 

24 generation. 
361

•HR 1640 IH 

1 (C) Promotion of energy conservation 

2 issues. 

3 (D) Effectively utilizing alternative fuels 

4 and renewable energy. 

5 (E) Advanced materials technology for oil 

6 and gas exploration and utilization in harsh en7 vironments. 

8 (F) Education on energy and power gen9 eration issues. 

10 SEC. 933. TECHNOLOGY TRANSFER. 

11 The Secretary shall establish a competitive program 

12 to award a contract to a nonprofit entity for the purpose 

13 of transferring technologies developed with public funds. 

14 The entity selected under this section shall have experi15 ence in offshore oil and gas technology management, in 

16 the transfer of technologies developed with public funds 

17 to the offshore and maritime industry, and in management 

18 of an offshore and maritime industry consortium. The pro19 gram consortium selected under section 942 shall not be 

20 eligible for selection under this section. When appropriate, 

21 the Secretary shall consider utilizing the entity selected 

22 under this section when implementing the activities au23 thorized by section 975. 
362

•HR 1640 IH 

1 SEC. 934. COAL MINING TECHNOLOGIES. 

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

3 a program of studies on coal mining technologies. The 

4 Secretary shall cooperate with appropriate Federal agen5 cies, coal producers, trade associations, equipment manu6 facturers, institutions of higher education with mining en7 gineering departments, and other relevant entities. 

8 (b) PROGRAM.—The activities carried out under this 

9 section shall—

10 (1) be guided by the mining priorities identified 

11 by the Mining Industry of the Future Program and 

12 in the recommendations from relevant reports of the 

13 National Academy of Sciences on mining tech14 nologies; and 

15 (2) include activities exploring minimization of 

16 contaminants in mined coal that contribute to envi17 ronmental concerns. 

18 SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM. 

19 (a) IN GENERAL.—In addition to the programs au20 thorized under title IV, the Secretary shall conduct a pro21 gram of technology to study coal and power systems, in22 cluding programs to facilitate production and generation 

23 of coal-based power through—

24 (1) innovations for existing plants; 

25 (2) integrated gasification combined cycle; 

26 (3) advanced combustion systems; 
363

•HR 1640 IH 

1 (4) turbines for synthesis gas derived from coal; 

2 (5) carbon capture and sequestration; 

3 (6) coal-derived transportation fuels and chemi4 cals; 

5 (7) solid fuels and feedstocks; 

6 (8) advanced studies; 

7 (9) advanced separation technologies; and 

8 (10) a joint project for permeability enhance9 ment in coals for natural gas production and carbon 

10 dioxide sequestration. 

11 (b) COST AND PERFORMANCE GOALS.—In carrying 

12 out programs authorized by this section, the Secretary 

13 shall identify cost and performance goals for coal-based 

14 technologies that would permit the continued cost-com15 petitive use of coal for electricity generation, as chemical 

16 feedstocks, and as transportation fuel in 2007, 2015, and 

17 the years after 2020. In establishing such cost and per18 formance goals, the Secretary shall—

19 (1) consider activities and studies undertaken 

20 to date by industry in cooperation with the Depart21 ment in support of such assessment; 

22 (2) consult with interested entities, including 

23 coal producers, industries using coal, organizations 

24 to promote coal and advanced coal technologies, en-
364

•HR 1640 IH 

1 vironmental organizations, and organizations rep2 resenting workers; 

3 (3) not later than 120 days after the date of 

4 enactment of this Act, publish in the Federal Reg5 ister proposed draft cost and performance goals for 

6 public comments; and 

7 (4) not later than 180 days after the date of 

8 enactment of this Act and every 4 years thereafter, 

9 submit to Congress a report describing final cost 

10 and performance goals for such technologies that in11 cludes a list of technical milestones as well as an ex12 planation of how programs authorized in this section 

13 will not duplicate the activities authorized under the 

14 Clean Coal Power Initiative authorized under sub15 title A of title IV. 

16 SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACIL17 ITY. 

18 The Secretary, in coordination with industry leaders 

19 in extended research drilling technology, shall establish a 

20 Complex Well Technology Testing Facility at the Rocky 

21 Mountain Oilfield Testing Center to increase the range of 

22 extended drilling technologies. 
365

•HR 1640 IH 

1 PART II—ULTRA-DEEPWATER AND UNCONVEN2 TIONAL NATURAL GAS AND OTHER PETRO3 LEUM RESOURCES 

4 SEC. 941. PROGRAM AUTHORITY. 

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

6 program under this part regarding technologies for ultra7 deepwater and unconventional natural gas and other pe8 troleum resource exploration and production, including ad9 dressing the technology challenges for small producers, 

10 safe operations, and environmental mitigation (including 

11 reduction of greenhouse gas emissions and sequestration 

12 of carbon). 

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

14 part shall address the following areas, including improving 

15 safety and minimizing environmental impacts of activities 

16 within each area: 

17 (1) Ultra-deepwater technology, including drill18 ing to formations in the Outer Continental Shelf to 

19 depths greater than 15,000 feet. 

20 (2) Ultra-deepwater architecture. 

21 (3) Unconventional natural gas and other petro22 leum resource exploration and production tech23 nology, including the technology challenges of small 

24 producers. 
366

•HR 1640 IH 

1 (c) LIMITATION ON LOCATION OF FIELD ACTIVI2 TIES.—Field activities under the program under this part 

3 shall be carried out only—

4 (1) in—

5 (A) areas in the territorial waters of the 

6 United States not under any Outer Continental 

7 Shelf moratorium as of September 30, 2002; 

8 (B) areas onshore in the United States on 

9 public land administered by the Secretary of the 

10 Interior available for oil and gas leasing, where 

11 consistent with applicable law and land use 

12 plans; and 

13 (C) areas onshore in the United States on 

14 State or private land, subject to applicable law; 

15 and 

16 (2) with the approval of the appropriate Fed17 eral or State land management agency or private 

18 land owner. 

19 (d) CONSULTATION WITH SECRETARY OF THE INTE20 RIOR.—In carrying out this part, the Secretary shall con21 sult regularly with the Secretary of the Interior. 

22 SEC. 942. ULTRA-DEEPWATER PROGRAM. 

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

24 activities under section 941(a), to maximize the use of the 

25 ultra-deepwater natural gas and other petroleum resources 
367

•HR 1640 IH 

1 of the United States by increasing the supply of such re2 sources, through reducing the cost and increasing the effi3 ciency of exploration for and production of such resources, 

4 while improving safety and minimizing environmental im5 pacts. 

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

7 have ultimate responsibility for, and oversight of, all as8 pects of the program under this section. 

9 (c) ROLE OF THE PROGRAM CONSORTIUM.—

10 (1) IN GENERAL.—The Secretary may contract 

11 with a consortium to—

12 (A) manage awards pursuant to subsection 

13 (f)(4); 

14 (B) make recommendations to the Sec15 retary for project solicitations; 

16 (C) disburse funds awarded under sub17 section (f) as directed by the Secretary in ac18 cordance with the annual plan under subsection 

19 (e); and 

20 (D) carry out other activities assigned to 

21 the program consortium by this section. 

22 (2) LIMITATION.—The Secretary may not as23 sign any activities to the program consortium except 

24 as specifically authorized under this section. 

25 (3) CONFLICT OF INTEREST.—
368

•HR 1640 IH 

1 (A) PROCEDURES.—The Secretary shall 

2 establish procedures—

3 (i) to ensure that each board member, 

4 officer, or employee of the program consor5 tium who is in a decision-making capacity 

6 under subsection (f)(3) or (4) shall disclose 

7 to the Secretary any financial interests in, 

8 or financial relationships with, applicants 

9 for or recipients of awards under this sec10 tion, including those of his or her spouse 

11 or minor child, unless such relationships or 

12 interests would be considered to be remote 

13 or inconsequential; and 

14 (ii) to require any board member, offi15 cer, or employee with a financial relation16 ship or interest disclosed under clause (i) 

17 to recuse himself or herself from any re18 view under subsection (f)(3) or oversight 

19 under subsection (f)(4) with respect to 

20 such applicant or recipient. 

21 (B) FAILURE TO COMPLY.—The Secretary 

22 may disqualify an application or revoke an 

23 award under this section if a board member, of24 ficer, or employee has failed to comply with pro25 cedures required under subparagraph (A)(ii). 
369

•HR 1640 IH 

1 (d) SELECTION OF THE PROGRAM CONSORTIUM.—

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

3 the program consortium through an open, competi4 tive process. 

5 (2) MEMBERS.—The program consortium may 

6 include corporations, trade associations, institutions 

7 of higher education, National Laboratories, or other 

8 research institutions. After submitting a proposal 

9 under paragraph (4), the program consortium may 

10 not add members without the consent of the Sec11 retary. 

12 (3) TAX STATUS.—The program consortium 

13 shall be an entity that is exempt from tax under sec14 tion 501(c)(3) of the Internal Revenue Code of 

15 1986. 

16 (4) SCHEDULE.—Not later than 180 days after 

17 the date of enactment of this Act, the Secretary 

18 shall solicit proposals from eligible consortia to per19 form the duties in subsection (c)(1), which shall be 

20 submitted not later than 360 days after the date of 

21 enactment of this Act. The Secretary shall select the 

22 program consortium not later than 18 months after 

23 such date of enactment. 
370

•HR 1640 IH 

1 (5) APPLICATION.—Applicants shall submit a 

2 proposal including such information as the Secretary 

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

4 (A) list all members of the consortium; 

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

8 (C) describe how the applicant would carry 

9 out the activities of the program consortium 

10 under this section. 

11 (6) CRITERION.—The Secretary shall consider 

12 the amount of the fee an applicant proposes to re13 ceive under subsection (g) in selecting a consortium 

14 under this section. 

15 (e) ANNUAL PLAN.—

16 (1) IN GENERAL.—The program under this sec17 tion shall be carried out pursuant to an annual plan 

18 prepared by the Secretary in accordance with para19 graph (2). 

20 (2) DEVELOPMENT.—

21 (A) SOLICITATION OF RECOMMENDA22 TIONS.—Before drafting an annual plan under 

23 this subsection, the Secretary shall solicit spe24 cific written recommendations from the pro25 gram consortium for each element to be ad-
371

•HR 1640 IH 

1 dressed in the plan, including those described in 

2 paragraph (4). The Secretary may request that 

3 the program consortium submit its rec4 ommendations in the form of a draft annual 

5 plan. 

6 (B) SUBMISSION OF RECOMMENDATIONS; 

7 OTHER COMMENT.—The Secretary shall submit 

8 the recommendations of the program consor9 tium under subparagraph (A) to the Ultra10 Deepwater Advisory Committee established 

11 under section 945(a) for review, and such Advi12 sory Committee shall provide to the Secretary 

13 written comments by a date determined by the 

14 Secretary. The Secretary may also solicit com15 ments from any other experts. 

16 (C) CONSULTATION.—The Secretary shall 

17 consult regularly with the program consortium 

18 throughout the preparation of the annual plan. 

19 (3) PUBLICATION.—The Secretary shall trans20 mit to Congress and publish in the Federal Register 

21 the annual plan, along with any written comments 

22 received under paragraph (2)(A) and (B). 

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

24 the ongoing and prospective activities of the pro25 gram under this section and shall include—
372

•HR 1640 IH 

1 (A) a list of any solicitations for awards 

2 that the Secretary plans to issue to carry out 

3 research, development, demonstration, or com4 mercial application activities, including the top5 ics for such work, who would be eligible to 

6 apply, selection criteria, and the duration of 

7 awards; and 

8 (B) a description of the activities expected 

9 of the program consortium to carry out sub10 section (f)(4). 

11 (5) ESTIMATES OF INCREASED ROYALTY RE12 CEIPTS.—The Secretary, in consultation with the 

13 Secretary of the Interior, shall provide an annual re14 port to Congress with the President’s budget on the 

15 estimated cumulative increase in Federal royalty re16 ceipts (if any) resulting from the implementation of 

17 this part. The initial report under this paragraph 

18 shall be submitted in the first President’s budget fol19 lowing the completion of the first annual plan re20 quired under this subsection. 

21 (f) AWARDS.—

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

23 awards to carry out activities under the program 

24 under this section. The program consortium shall 
373

•HR 1640 IH 

1 not be eligible to receive such awards, but members 

2 of the program consortium may receive such awards. 

3 (2) PROPOSALS.—The Secretary shall solicit 

4 proposals for awards under this subsection in such 

5 manner and at such time as the Secretary may pre6 scribe, in consultation with the program consortium. 

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

8 under this subsection through a competitive process, 

9 which shall include a review by individuals selected 

10 by the Secretary. Such individuals shall include, for 

11 each application, Federal officials, the program con12 sortium, and non-Federal experts who are not board 

13 members, officers, or employees of the program con14 sortium or of a member of the program consortium. 

15 (4) OVERSIGHT.—

16 (A) IN GENERAL.—The program consor17 tium shall oversee the implementation of 

18 awards under this subsection, consistent with 

19 the annual plan under subsection (e), including 

20 disbursing funds and monitoring activities car21 ried out under such awards for compliance with 

22 the terms and conditions of the awards. 

23 (B) EFFECT.—Nothing in subparagraph 

24 (A) shall limit the authority or responsibility of 

25 the Secretary to oversee awards, or limit the 
374

•HR 1640 IH 

1 authority of the Secretary to review or revoke 

2 awards. 

3 (C) PROVISION OF INFORMATION.—The 

4 Secretary shall provide to the program consor5 tium the information necessary for the program 

6 consortium to carry out its responsibilities 

7 under this paragraph. 

8 (g) ADMINISTRATIVE COSTS.—

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

10 consortium for carrying out its activities under this 

11 section, the Secretary shall provide to the program 

12 consortium funds sufficient to administer the pro13 gram. This compensation may include a manage14 ment fee consistent with Department of Energy con15 tracting practices and procedures. 

16 (2) ADVANCE.—The Secretary shall advance 

17 funds to the program consortium upon selection of 

18 the consortium, which shall be deducted from 

19 amounts to be provided under paragraph (1). 

20 (h) AUDIT.—The Secretary shall retain an inde21 pendent, commercial auditor to determine the extent to 

22 which funds provided to the program consortium, and 

23 funds provided under awards made under subsection (f), 

24 have been expended in a manner consistent with the pur25 poses and requirements of this part. The auditor shall 
375

•HR 1640 IH 

1 transmit a report annually to the Secretary, who shall 

2 transmit the report to Congress, along with a plan to rem3 edy any deficiencies cited in the report. 

4 SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PE5 TROLEUM RESOURCES PROGRAM. 

6 (a) IN GENERAL.—The Secretary shall carry out ac7 tivities under subsection 941(b)(3), to maximize the use 

8 of the onshore unconventional natural gas and other petro9 leum resources of the United States, by increasing the 

10 supply of such resources, through reducing the cost and 

11 increasing the efficiency of exploration for and production 

12 of such resources, while improving safety and minimizing 

13 environmental impacts. 

14 (b) AWARDS.—

15 (1) IN GENERAL.—The Secretary shall carry 

16 out this section through awards to consortia made 

17 through an open, competitive process. As a condition 

18 of award of funds, qualified consortia shall—

19 (A) demonstrate capability and experience 

20 in unconventional onshore natural gas or other 

21 petroleum technologies; 

22 (B) provide a research plan that dem23 onstrates how additional natural gas or oil pro24 duction will be achieved; and 
376

•HR 1640 IH 

1 (C) at the request of the Secretary, provide 

2 technical advice to the Secretary for the pur3 poses of developing the annual plan required 

4 under subsection (e). 

5 (2) PRODUCTION POTENTIAL.—The Secretary 

6 shall seek to ensure that the number and types of 

7 awards made under this subsection have reasonable 

8 potential to lead to additional oil and natural gas 

9 production on Federal lands. 

10 (3) SCHEDULE.—To carry out this subsection, 

11 not later than 180 days after the date of enactment 

12 of this Act, the Secretary shall solicit proposals from 

13 consortia, which shall be submitted not later than 

14 360 days after the date of enactment of this Act. 

15 The Secretary shall select the first group of research 

16 consortia to receive awards under this subsection not 

17 later than 18 months after such date of enactment. 

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

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

22 purposes and requirements of this part. The auditor shall 

23 transmit a report annually to the Secretary, who shall 

24 transmit the report to Congress, along with a plan to rem25 edy any deficiencies cited in the report. 
377

•HR 1640 IH 

1 (d) FOCUS AREAS FOR AWARDS.—

2 (1) UNCONVENTIONAL RESOURCES.—Awards 

3 from allocations under section 949(d)(2) shall focus 

4 on areas including advanced coalbed methane, deep 

5 drilling, natural gas production from tight sands, 

6 natural gas production from gas shales, stranded 

7 gas, innovative exploration and production tech8 niques, enhanced recovery techniques, and environ9 mental mitigation of unconventional natural gas and 

10 other petroleum resources exploration and produc11 tion. 

12 (2) SMALL PRODUCERS.—Awards from alloca13 tions under section 949(d)(3) shall be made to con14 sortia consisting of small producers or organized pri15 marily for the benefit of small producers, and shall 

16 focus on areas including complex geology involving 

17 rapid changes in the type and quality of the oil and 

18 gas reservoirs across the reservoir; low reservoir 

19 pressure; unconventional natural gas reservoirs in 

20 coalbeds, deep reservoirs, tight sands, or shales; and 

21 unconventional oil reservoirs in tar sands and oil 

22 shales. 

23 (e) ANNUAL PLAN.—

24 (1) IN GENERAL.—The program under this sec25 tion shall be carried out pursuant to an annual plan 
378

•HR 1640 IH 

1 prepared by the Secretary in accordance with para2 graph (2). 

3 (2) DEVELOPMENT.—

4 (A) WRITTEN RECOMMENDATIONS.—Be5 fore drafting an annual plan under this sub6 section, the Secretary shall solicit specific writ7 ten recommendations from the consortia receiv8 ing awards under subsection (b) and the Un9 conventional Resources Technology Advisory 

10 Committee for each element to be addressed in 

11 the plan, including those described in subpara12 graph (D). 

13 (B) CONSULTATION.—The Secretary shall 

14 consult regularly with the consortia throughout 

15 the preparation of the annual plan. 

16 (C) PUBLICATION.—The Secretary shall 

17 transmit to Congress and publish in the Fed18 eral Register the annual plan, along with any 

19 written comments received under subparagraph 

20 (A). 

21 (D) CONTENTS.—The annual plan shall 

22 describe the ongoing and prospective activities 

23 under this section and shall include a list of any 

24 solicitations for awards that the Secretary plans 

25 to issue to carry out activities, including the 
379

•HR 1640 IH 

1 topics for such work, who would be eligible to 

2 apply, selection criteria, and the duration of 

3 awards. 

4 (3) ESTIMATES OF INCREASED ROYALTY RE5 CEIPTS.—The Secretary, in consultation with the 

6 Secretary of the Interior, shall provide an annual re7 port to Congress with the President’s budget on the 

8 estimated cumulative increase in Federal royalty re9 ceipts (if any) resulting from the implementation of 

10 this part. The initial report under this paragraph 

11 shall be submitted in the first President’s budget fol12 lowing the completion of the first annual plan re13 quired under this subsection. 

14 SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS. 

15 (a) DEMONSTRATION PROJECTS.—An application for 

16 an award under this part for a demonstration project shall 

17 describe with specificity the intended commercial use of 

18 the technology to be demonstrated. 

19 (b) FLEXIBILITY IN LOCATING DEMONSTRATION

20 PROJECTS.—Subject to the limitation in section 941(c), 

21 a demonstration project under this part relating to an 

22 ultra-deepwater technology or an ultra-deepwater architec23 ture may be conducted in deepwater depths. 

24 (c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 

25 award under this part is made to a consortium (other than 
380

•HR 1640 IH 

1 the program consortium), the consortium shall provide to 

2 the Secretary a signed contract agreed to by all members 

3 of the consortium describing the rights of each member 

4 to intellectual property used or developed under the award. 

5 (d) TECHNOLOGY TRANSFER.—2.5 percent of the 

6 amount of each award made under this part shall be des7 ignated for technology transfer and outreach activities 

8 under this title. 

9 (e) COST SHARING REDUCTION FOR INDEPENDENT

10 PRODUCERS.—In applying the cost sharing requirements 

11 under section 972 to an award under this part the Sec12 retary may reduce or eliminate the non-Federal require13 ment if the Secretary determines that the reduction is nec14 essary and appropriate considering the technological risks 

15 involved in the project. 

16 SEC. 945. ADVISORY COMMITTEES. 

17 (a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—

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

19 after the date of enactment of this Act, the Sec20 retary shall establish an advisory committee to be 

21 known as the Ultra-Deepwater Advisory Committee. 

22 (2) MEMBERSHIP.—The advisory committee 

23 under this subsection shall be composed of members 

24 appointed by the Secretary including—
381

•HR 1640 IH 

1 (A) individuals with extensive experience or 

2 operational knowledge of offshore natural gas 

3 and other petroleum exploration and produc4 tion; 

5 (B) individuals broadly representative of 

6 the affected interests in ultra-deepwater natural 

7 gas and other petroleum production, including 

8 interests in environmental protection and safe 

9 operations; 

10 (C) no individuals who are Federal employ11 ees; and 

12 (D) no individuals who are board members, 

13 officers, or employees of the program consor14 tium. 

15 (3) DUTIES.—The advisory committee under 

16 this subsection shall—

17 (A) advise the Secretary on the develop18 ment and implementation of programs under 

19 this part related to ultra-deepwater natural gas 

20 and other petroleum resources; and 

21 (B) carry out section 942(e)(2)(B). 

22 (4) COMPENSATION.—A member of the advi23 sory committee under this subsection shall serve 

24 without compensation but shall receive travel ex25 penses in accordance with applicable provisions 
382

•HR 1640 IH 

1 under subchapter I of chapter 57 of title 5, United 

2 States Code. 

3 (b) UNCONVENTIONAL RESOURCES TECHNOLOGY

4 ADVISORY COMMITTEE.—

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

6 after the date of enactment of this Act, the Sec7 retary shall establish an advisory committee to be 

8 known as the Unconventional Resources Technology 

9 Advisory Committee. 

10 (2) MEMBERSHIP.—The advisory committee 

11 under this subsection shall be composed of members 

12 appointed by the Secretary including—

13 (A) a majority of members who are em14 ployees or representatives of independent pro15 ducers of natural gas and other petroleum, in16 cluding small producers; 

17 (B) individuals with extensive research ex18 perience or operational knowledge of unconven19 tional natural gas and other petroleum resource 

20 exploration and production; 

21 (C) individuals broadly representative of 

22 the affected interests in unconventional natural 

23 gas and other petroleum resource exploration 

24 and production, including interests in environ25 mental protection and safe operations; and 
383

•HR 1640 IH 

1 (D) no individuals who are Federal em2 ployees. 

3 (3) DUTIES.—The advisory committee under 

4 this subsection shall advise the Secretary on the de5 velopment and implementation of activities under 

6 this part related to unconventional natural gas and 

7 other petroleum resources. 

8 (4) COMPENSATION.—A member of the advi9 sory committee under this subsection shall serve 

10 without compensation but shall receive travel ex11 penses in accordance with applicable provisions 

12 under subchapter I of chapter 57 of title 5, United 

13 States Code. 

14 (c) PROHIBITION.—No advisory committee estab15 lished under this section shall make recommendations on 

16 funding awards to particular consortia or other entities, 

17 or for specific projects. 

18 SEC. 946. LIMITS ON PARTICIPATION. 

19 An entity shall be eligible to receive an award under 

20 this part only if the Secretary finds—

21 (1) that the entity’s participation in the pro22 gram under this part would be in the economic in23 terest of the United States; and 

24 (2) that either—
384

•HR 1640 IH 

1 (A) the entity is a United States-owned en2 tity organized under the laws of the United 

3 States; or 

4 (B) the entity is organized under the laws 

5 of the United States and has a parent entity or6 ganized under the laws of a country that af7 fords—

8 (i) to United States-owned entities op9 portunities, comparable to those afforded 

10 to any other entity, to participate in any 

11 cooperative research venture similar to 

12 those authorized under this part; 

13 (ii) to United States-owned entities 

14 local investment opportunities comparable 

15 to those afforded to any other entity; and 

16 (iii) adequate and effective protection 

17 for the intellectual property rights of 

18 United States-owned entities. 

19 SEC. 947. SUNSET. 

20 The authority provided by this part shall terminate 

21 on September 30, 2014. 

22 SEC. 948. DEFINITIONS. 

23 In this part: 
385

•HR 1640 IH 

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

2 means a water depth that is greater than 200 but 

3 less than 1,500 meters. 

4 (2) INDEPENDENT PRODUCER OF OIL OR

5 GAS.—

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

7 producer of oil or gas’’ means any person that 

8 produces oil or gas other than a person to 

9 whom subsection (c) of section 613A of the In10 ternal Revenue Code of 1986 does not apply by 

11 reason of paragraph (2) (relating to certain re12 tailers) or paragraph (4) (relating to certain re13 finers) of section 613A(d) of such Code. 

14 (B) RULES FOR APPLYING PARAGRAPHS (2)

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

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

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

18 of 1986 shall be applied by substituting ‘‘cal19 endar year’’ for ‘‘taxable year’’ each place it ap20 pears in such paragraphs. 

21 (3) PROGRAM CONSORTIUM.—The term ‘‘pro22 gram consortium’’ means the consortium selected 

23 under section 942(d). 

24 (4) REMOTE OR INCONSEQUENTIAL.—The term 

25 ‘‘remote or inconsequential’’ has the meaning given 
386

•HR 1640 IH 

1 that term in regulations issued by the Office of Gov2 ernment Ethics under section 208(b)(2) of title 18, 

3 United States Code. 

4 (5) SMALL PRODUCER.—The term ‘‘small pro5 ducer’’ means an entity organized under the laws of 

6 the United States with production levels of less than 

7 1,000 barrels per day of oil equivalent. 

8 (6) ULTRA-DEEPWATER.—The term ‘‘ultra9 deepwater’’ means a water depth that is equal to or 

10 greater than 1,500 meters. 

11 (7) ULTRA-DEEPWATER ARCHITECTURE.—The 

12 term ‘‘ultra-deepwater architecture’’ means the inte13 gration of technologies for the exploration for, or 

14 production of, natural gas or other petroleum re15 sources located at ultra-deepwater depths. 

16 (8) ULTRA-DEEPWATER TECHNOLOGY.—The 

17 term ‘‘ultra-deepwater technology’’ means a discrete 

18 technology that is specially suited to address 1 or 

19 more challenges associated with the exploration for, 

20 or production of, natural gas or other petroleum re21 sources located at ultra-deepwater depths. 

22 (9) UNCONVENTIONAL NATURAL GAS AND

23 OTHER PETROLEUM RESOURCE.—The term ‘‘uncon24 ventional natural gas and other petroleum resource’’ 

25 means natural gas and other petroleum resource lo-
387

•HR 1640 IH 

1 cated onshore in an economically inaccessible geo2 logical formation, including resources of small pro3 ducers. 

4 SEC. 949. FUNDING. 

5 (a) IN GENERAL.—

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

7 fiscal years 2005 through 2014, from any Federal 

8 royalties, rents, and bonuses derived from Federal 

9 onshore and offshore oil and gas leases issued under 

10 the Outer Continental Shelf Lands Act and the Min11 eral Leasing Act which are deposited in the Treas12 ury, and after distribution of any such funds as de13 scribed in subsection (c), $50,000,000 shall be de14 posited into the Ultra-Deepwater and Unconven15 tional Natural Gas and Other Petroleum Research 

16 Fund (in this section referred to as the Fund). For 

17 purposes of this section, the term ‘‘royalties’’ ex18 cludes proceeds from the sale of royalty production 

19 taken in kind and royalty production that is trans20 ferred under section 27(a)(3) of the Outer Conti21 nental Shelf Lands Act (43 U.S.C. 1353(a)(3)). 

22 (2) AUTHORIZATION OF APPROPRIATIONS.—In 

23 addition to amounts described in paragraph (1), 

24 there are authorized to be appropriated to the Sec25 retary, to be deposited in the Fund, $150,000,000 
388

•HR 1640 IH 

1 for each of the fiscal years 2005 through 2014, to 

2 remain available until expended. 

3 (b) OBLIGATIONAL AUTHORITY.—Monies in the 

4 Fund shall be available to the Secretary for obligation 

5 under this part without fiscal year limitation, to remain 

6 available until expended. 

7 (c) PRIOR DISTRIBUTIONS.—The distributions de8 scribed in subsection (a) are those required by law—

9 (1) to States and to the Reclamation Fund 

10 under the Mineral Leasing Act (30 U.S.C. 191(a)); 

11 and 

12 (2) to other funds receiving monies from Fed13 eral oil and gas leasing programs, including—

14 (A) any recipients pursuant to section 8(g) 

15 of the Outer Continental Shelf Lands Act (43 

16 U.S.C. 1337(g)); 

17 (B) the Land and Water Conservation 

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

19 Water Conservation Fund Act of 1965 (16 

20 U.S.C. 4601–5(c)); 

21 (C) the Historic Preservation Fund, pursu22 ant to section 108 of the National Historic 

23 Preservation Act (16 U.S.C. 470h); and 

24 (D) the Secure Energy Reinvestment 

25 Fund. 
389

•HR 1640 IH 

1 (d) ALLOCATION.—Amounts obligated from the Fund 

2 under this section in each fiscal year shall be allocated 

3 as follows: 

4 (1) 50 percent shall be for activities under sec5 tion 942. 

6 (2) 35 percent shall be for activities under sec7 tion 943(d)(1). 

8 (3) 10 percent shall be for activities under sec9 tion 943(d)(2). 

10 (4) 5 percent shall be for research under section 

11 941(d). 

12 (e) FUND.—There is hereby established in the Treas13 ury of the United States a separate fund to be known as 

14 the ‘‘Ultra-Deepwater and Unconventional Natural Gas 

15 and Other Petroleum Research Fund’’. 

16 Subtitle F—Energy Sciences 

17 SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM. 

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

19 of the United States to conduct a program of activities 

20 to ensure that the United States is competitive with other 

21 nations in providing fusion energy for its own needs and 

22 the needs of other nations. 

23 (b) PLANNING.—

24 (1) IN GENERAL.—Not later than 180 days 

25 after the date of enactment of this Act, the Sec-
390

•HR 1640 IH 

1 retary shall present to Congress a plan, with pro2 posed cost estimates, budgets, and potential inter3 national partners, for the implementation of the pol4 icy described in subsection (a). 

5 (2) COSTS AND SCHEDULES.—Such plan shall 

6 also address the status of and, to the degree pos7 sible, costs and schedules for—

8 (A) the design and implementation of 

9 international or national facilities for the test10 ing of fusion materials; and 

11 (B) the design and implementation of 

12 international or national facilities for the test13 ing and development of key fusion technologies. 

14 SEC. 954. SPALLATION NEUTRON SOURCE. 

15 (a) DEFINITION.—For the purposes of this section, 

16 the term ‘‘Spallation Neutron Source’’ means Department 

17 Project 99–E–334, Oak Ridge National Laboratory, Oak 

18 Ridge, Tennessee. 

19 (b) REPORT.—The Secretary shall report on the 

20 Spallation Neutron Source as part of the Department’s 

21 annual budget submission, including a description of the 

22 achievement of milestones, a comparison of actual costs 

23 to estimated costs, and any changes in estimated project 

24 costs or schedule. 
391

•HR 1640 IH 

1 (c) LIMITATIONS.—The total amount obligated by the 

2 Department, including prior year appropriations, for the 

3 Spallation Neutron Source shall not exceed—

4 (1) $1,192,700,000 for costs of construction; 

5 (2) $219,000,000 for other project costs; and 

6 (3) $1,411,700,000 for total project cost. 

7 SEC. 962. NITROGEN FIXATION. 

8 The Secretary shall conduct studies on biological ni9 trogen fixation, including plant genomics research relevant 

10 to the development of commercial crop varieties with en11 hanced nitrogen fixation efficiency and ability. 

12 Subtitle G—Energy and 

13 Environment 

14 SEC. 966. WASTE REDUCTION AND USE OF ALTERNATIVES. 

15 (a) GRANT AUTHORITY.—The Secretary may make 

16 a single grant to a qualified institution to examine burning 

17 post-consumer carpet in cement kilns as an alternative en18 ergy source. The purposes of the grant shall include deter19 mining—

20 (1) how post-consumer carpet can be burned 

21 without disrupting kiln operations; 

22 (2) the extent to which overall kiln emissions 

23 may be reduced; 

24 (3) the emissions of air pollutants and other 

25 relevant environmental impacts; and 
392

•HR 1640 IH 

1 (4) how this process provides benefits to both 

2 cement kiln operations and carpet suppliers. 

3 (b) QUALIFIED INSTITUTION.—For the purposes of 

4 subsection (a), a qualified institution is an institution of 

5 higher education with demonstrated expertise in the fields 

6 of fiber recycling and logistical modeling of carpet waste 

7 collection and preparation. 

8 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

9 are authorized to be appropriated to the Secretary for car10 rying out this section $500,000. 

11 SEC. 967. REPORT ON FUEL CELL TEST CENTER. 

12 (a) REPORT.—Not later than 1 year after the date 

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

14 Congress a report on the results of a study of the estab15 lishment of a test center for next-generation fuel cells at 

16 an institution of higher education that has available a con17 tinuous source of hydrogen and access to the electric 

18 transmission grid. Such report shall include a conceptual 

19 design for such test center and a projection of the costs 

20 of establishing the test center. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Secretary for car23 rying out this section $500,000. 
393

•HR 1640 IH 

1 SEC. 968. ARCTIC ENGINEERING RESEARCH CENTER. 

2 (a) IN GENERAL.—The Secretary of Energy (referred 

3 to in this section as the ‘‘Secretary’’) in consultation with 

4 the Secretary of Transportation and the United States 

5 Arctic Research Commission shall provide annual grants 

6 to a university located adjacent to the Arctic Energy Of7 fice of the Department of Energy, to establish and operate 

8 a university research center to be headquartered in Fair9 banks and to be known as the ‘‘Arctic Engineering Re10 search Center’’ (referred to in this section as the ‘‘Cen11 ter’’). 

12 (b) PURPOSE.—The purpose of the Center shall be 

13 to conduct research on, and develop improved methods of, 

14 construction and use of materials to improve the overall 

15 performance of roads, bridges, residential, commercial, 

16 and industrial structures, and other infrastructure in the 

17 Arctic region, with an emphasis on developing—

18 (1) new construction techniques for roads, 

19 bridges, rail, and related transportation infrastruc20 ture and residential, commercial, and industrial in21 frastructure that are capable of withstanding the 

22 Arctic environment and using limited energy re23 sources as efficiently as possible; 

24 (2) technologies and procedures for increasing 

25 road, bridge, rail, and related transportation infra26 structure and residential, commercial, and industrial 
394

•HR 1640 IH 

1 infrastructure safety, reliability, and integrity in the 

2 Arctic region; 

3 (3) new materials and improving the perform4 ance and energy efficiency of existing materials for 

5 the construction of roads, bridges, rail, and related 

6 transportation infrastructure and residential, com7 mercial, and industrial infrastructure in the Arctic 

8 region; and 

9 (4) recommendations for new local, regional, 

10 and State permitting and building codes to ensure 

11 transportation and building safety and efficient en12 ergy use when constructing, using, and occupying 

13 such infrastructure in the Arctic region. 

14 (c) OBJECTIVES.—The Center shall carry out—

15 (1) basic and applied research in the subjects 

16 described in subsection (b), the products of which 

17 shall be judged by peers or other experts in the field 

18 to advance the body of knowledge in road, bridge, 

19 rail, and infrastructure engineering in the Arctic re20 gion; and 

21 (2) an ongoing program of technology transfer 

22 that makes research results available to potential 

23 users in a form that can be implemented. 

24 (d) AMOUNT OF GRANT.—For each of fiscal years 

25 2005 through 2010, the Secretary shall provide a grant 
395

•HR 1640 IH 

1 in the amount of $3,000,000 to the institution specified 

2 in subsection (a) to carry out this section. 

3 (e) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to carry out this section 

5 $3,000,000 for each of fiscal years 2005 through 2010. 

6 SEC. 970. WESTERN MICHIGAN DEMONSTRATION PROJECT. 

7 The Administrator of the Environmental Protection 

8 Agency, in consultation with the State of Michigan and 

9 affected local officials, shall conduct a demonstration 

10 project to address the effect of transported ozone and 

11 ozone precursors in Southwestern Michigan. The dem12 onstration program shall address projected nonattainment 

13 areas in Southwestern Michigan that include counties with 

14 design values for ozone of less than .095 based on years 

15 2000 to 2002 or the most current 3-year period of air 

16 quality data. The Administrator shall assess any difficul17 ties such areas may experience in meeting the 8 hour na18 tional ambient air quality standard for ozone due to the 

19 effect of transported ozone or ozone precursors into the 

20 areas. The Administrator shall work with State and local 

21 officials to determine the extent of ozone and ozone pre22 cursor transport, to assess alternatives to achieve compli23 ance with the 8 hour standard apart from local controls, 

24 and to determine the timeframe in which such compliance 

25 could take place. The Administrator shall complete this 
396

•HR 1640 IH 

1 demonstration project no later than 2 years after the date 

2 of enactment of this section and shall not impose any re3 quirement or sanction that might otherwise apply during 

4 the pendency of the demonstration project. 

5 SEC. 971. LOW-COST HYDROGEN PROPULSION AND INFRA6 STRUCTURE. 

7 (a) PROGRAM.—The Secretary of Energy shall—

8 (1) establish a program with respect to the fea9 sibility of using hydrogen propulsion in light-weight 

10 vehicles and the integration of the associated hydro11 gen production infrastructure using off-the-shelf 

12 components; and 

13 (2) identify universities and institutions that—

14 (A) have expertise in operating and testing 

15 vehicles fueled by hydrogen, methane, and other 

16 fuels; 

17 (B) have expertise in integrating off-the18 shelf components to minimize cost; and 

19 (C) within two years can test a vehicle 

20 based on an existing commercially available 

21 platform with a curb weight of not less than 

22 2,000 pounds before modifications, that—

23 (i) operates solely on hydrogen gas; 

24 (ii) can travel a minimum of 300 

25 miles under normal road conditions; and 
397

•HR 1640 IH 

1 (iii) uses hydrogen produced from 

2 water using only solar energy. 

3 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

4 are authorized to be appropriated to the Secretary of En5 ergy for carrying out this section $200,000 for fiscal year 

6 2006. Such sums shall remain available until expended. 

7 SEC. 972. CARBON-BASED FUEL CELL DEVELOPMENT. 

8 (a) GRANT AUTHORITY.—The Secretary of Energy is 

9 authorized to make a single grant to a qualified institution 

10 to design and fabricate a 5-kilowatt prototype coal-based 

11 fuel cell with the following performance objectives: 

12 (1) A current density of 600 milliamps per 

13 square centimeter at a cell voltage of 0.8 volts. 

14 (2) An operating temperature range not to ex15 ceed 900 degrees celsius. 

16 (b) QUALIFIED INSTITUTION.—For the purposes of 

17 subsection (a), a qualified institution is a research-inten18 sive institution of higher education with demonstrated ex19 pertise in the development of carbon-based fuel cells allow20 ing the direct use of high sulfur content coal as fuel, and 

21 which has produced a laboratory-scale carbon-based fuel 

22 cell with a proven current density of 100 milliamps per 

23 square centimeter at a voltage of 0.6 volts. 

24 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

25 are authorized to be appropriated to the Secretary of En-
398

•HR 1640 IH 

1 ergy for carrying out this section $850,000 for fiscal year 

2 2006. 

3 Subtitle H—International 

4 Cooperation 

5 SEC. 981. UNITED STATES-ISRAEL COOPERATION. 

6 (a) FINDINGS.—The Congress finds that—

7 (1) on February 1, 1996, United States Sec8 retary of Energy Hazel R. O’Leary and Israeli Min9 ister of Energy and Infrastructure Gonen Segev 

10 signed the Agreement between the Department of 

11 Energy of the United States of America and the 

12 Ministry of Energy and Infrastructure of Israel Con13 cerning Energy Cooperation, to establish a frame14 work for collaboration between the United States 

15 and Israel in energy research and development ac16 tivities; 

17 (2) the Agreement entered into force in Feb18 ruary 2000; 

19 (3) in February 2005, the Agreement was auto20 matically renewed for one additional 5-year period 

21 pursuant to Article X of the Agreement; and 

22 (4) under the Agreement, the United States 

23 and Israel may cooperate in energy research and de24 velopment in a variety of alternative and advanced 

25 energy sectors. 
399

•HR 1640 IH 

1 (b) REPORT TO CONGRESS.—(1) The Secretary of 

2 Energy shall report to the Committee on Energy and 

3 Commerce of the House of Representatives and the Com4 mittee on Energy and Natural Resources of the Senate 

5 on—

6 (A) how the United States and Israel have co7 operated on energy research and development activi8 ties under the Agreement; 

9 (B) projects initiated pursuant to the Agree10 ment; and 

11 (C) plans for future cooperation and joint 

12 projects under the Agreement. 

13 (2) The report shall be submitted no later than three 

14 months after the date of enactment of this Act. 

15 (c) SENSE OF CONGRESS.—It is the sense of the Con16 gress that energy cooperation between the Governments 

17 of the United States and Israel is mutually beneficial in 

18 the development of energy technology. 

19 TITLE X—DEPARTMENT OF 

20 ENERGY MANAGEMENT 

21 SEC. 1001. ADDITIONAL ASSISTANT SECRETARY POSITION. 

22 (a) ADDITIONAL ASSISTANT SECRETARY POSITION

23 TO ENABLE IMPROVED MANAGEMENT OF NUCLEAR EN24 ERGY ISSUES.—
400

•HR 1640 IH 

1 (1) IN GENERAL.—Section 203(a) of the De2 partment of Energy Organization Act (42 U.S.C. 

3 7133(a)) is amended by striking ‘‘six Assistant Sec4 retaries’’ and inserting ‘‘7 Assistant Secretaries’’. 

5 (2) SENSE OF CONGRESS.—It is the sense of 

6 Congress that the leadership for departmental mis7 sions in nuclear energy should be at the Assistant 

8 Secretary level. 

9 (b) TECHNICAL AND CONFORMING AMENDMENTS.—

10 (1) TITLE 5.—Section 5315 of title 5, United 

11 States Code, is amended by striking ‘‘Assistant Sec12 retaries of Energy (6)’’ and inserting ‘‘Assistant 

13 Secretaries of Energy (7)’’. 

14 (2) DEPARTMENT OF ENERGY ORGANIZATION

15 ACT.—The table of contents for the Department of 

16 Energy Organization Act (42 U.S.C. 7101 note) is 

17 amended—

18 (A) by striking ‘‘Section 209’’ and insert19 ing ‘‘Sec. 209’’; 

20 (B) by striking ‘‘213.’’ and inserting ‘‘Sec. 

21 213.’’; 

22 (C) by striking ‘‘214.’’ and inserting ‘‘Sec. 

23 214.’’; 

24 (D) by striking ‘‘215.’’ and inserting ‘‘Sec. 

25 215.’’; and 
401

•HR 1640 IH 

1 (E) by striking ‘‘216.’’ and inserting ‘‘Sec. 

2 216.’’. 

3 SEC. 1002. OTHER TRANSACTIONS AUTHORITY. 

4 Section 646 of the Department of Energy Organiza5 tion Act (42 U.S.C. 7256) is amended by adding at the 

6 end the following: 

7 ‘‘(g)(1) In addition to other authorities granted to the 

8 Secretary under law, the Secretary may enter into other 

9 transactions on such terms as the Secretary may deem 

10 appropriate in furtherance of research, development, or 

11 demonstration functions vested in the Secretary. Such 

12 other transactions shall not be subject to the provisions 

13 of section 9 of the Federal Nonnuclear Energy Research 

14 and Development Act of 1974 (42 U.S.C. 5908) or section 

15 152 of the Atomic Energy Act of 1954 (42 U.S.C. 2182). 

16 ‘‘(2)(A) The Secretary shall ensure that—

17 ‘‘(i) to the maximum extent the Secretary de18 termines practicable, no transaction entered into 

19 under paragraph (1) provides for research, develop20 ment, or demonstration that duplicates research, de21 velopment, or demonstration being conducted under 

22 existing projects carried out by the Department; 

23 ‘‘(ii) to the extent the Secretary determines 

24 practicable, the funds provided by the Government 

25 under a transaction authorized by paragraph (1) do 
402

•HR 1640 IH 

1 not exceed the total amount provided by other par2 ties to the transaction; and 

3 ‘‘(iii) to the extent the Secretary determines 

4 practicable, competitive, merit-based selection proce5 dures shall be used when entering into transactions 

6 under paragraph (1). 

7 ‘‘(B) A transaction authorized by paragraph (1) may 

8 be used for a research, development, or demonstration 

9 project only if the Secretary makes a written determina10 tion that the use of a standard contract, grant, or coopera11 tive agreement for the project is not feasible or appro12 priate. 

13 ‘‘(3)(A) The Secretary shall protect from disclosure, 

14 including disclosure under section 552 of title 5, United 

15 States Code, for up to 5 years after the date the informa16 tion is received by the Secretary—

17 ‘‘(i) a proposal, proposal abstract, and sup18 porting documents submitted to the Department in 

19 a competitive or noncompetitive process having the 

20 potential for resulting in an award under paragraph 

21 (1) to the party submitting the information; and 

22 ‘‘(ii) a business plan and technical information 

23 relating to a transaction authorized by paragraph 

24 (1) submitted to the Department as confidential 

25 business information. 
403

•HR 1640 IH 

1 ‘‘(B) The Secretary may protect from disclosure, for 

2 up to 5 years after the information was developed, any 

3 information developed pursuant to a transaction under 

4 paragraph (1) which developed information is of a char5 acter that it would be protected from disclosure under sec6 tion 552(b)(4) of title 5, United States Code, if obtained 

7 from a person other than a Federal agency. 

8 ‘‘(4) Not later than 90 days after the date of enact9 ment of this subsection, the Secretary shall prescribe 

10 guidelines for using other transactions authorized by para11 graph (1). Such guidelines shall be published in the Fed12 eral Register for public comment under rulemaking proce13 dures of the Department. 

14 ‘‘(5) The authority of the Secretary under this sub15 section may be delegated only to an officer of the Depart16 ment who is appointed by the President by and with the 

17 advice and consent of the Senate and may not be delegated 

18 to any other person. 

19 ‘‘(6)(A) Not later than September 31, 2006, the 

20 Comptroller General of the United States shall report to 

21 Congress on the Department’s use of the authorities 

22 granted under this section, including the ability to attract 

23 nontraditional government contractors and whether addi24 tional safeguards are needed with respect to the use of 

25 such authorities. 
404

•HR 1640 IH 

1 ‘‘(B) In this section, the term ‘nontraditional Govern2 ment contractor’ has the same meaning as the term ‘non3 traditional defense contractor’ as defined in section 845(e) 

4 of the National Defense Authorization Act for Fiscal Year 

5 1994 (Public Law 103–160; 10 U.S.C. 2371 note).’’. 

6 SEC. 1003. UNIVERSITY COLLABORATION. 

7 Not later than 2 years after the date of enactment 

8 of this Act, the Secretary of Energy shall transmit to the 

9 Congress a report that examines the feasibility of pro10 moting collaborations between major universities and 

11 other colleges and universities in grants, contracts, and 

12 cooperative agreements made by the Secretary for energy 

13 projects. For purposes of this section, major universities 

14 are schools listed by the Carnegie Foundation as Doctoral 

15 Research Extensive Universities. The Secretary shall also 

16 consider providing incentives to increase the inclusion of 

17 small institutions of higher education, including minority18 serving institutions, in energy grants, contracts, and coop19 erative agreements. 

20 SEC. 1004. SENSE OF CONGRESS. 

21 It is the sense of the Congress that—

22 (1) the Secretary of Energy should develop and 

23 implement more stringent procurement and inven24 tory controls, including controls on the purchase 

25 card program, to prevent waste, fraud, and abuse of 
405

•HR 1640 IH 

1 taxpayer funds by employees and contractors of the 

2 Department of Energy; and 

3 (2) the Department’s Inspector General should 

4 continue to closely review purchase card purchases 

5 and other procurement and inventory practices at 

6 the Department. 

7 TITLE XII—ELECTRICITY 

8 SEC. 1201. SHORT TITLE. 

9 This title may be cited as the ‘‘Electric Reliability 

10 Act of 2005’’. 

11 Subtitle A—Reliability Standards 

12 SEC. 1211. ELECTRIC RELIABILITY STANDARDS. 

13 (a) IN GENERAL.—Part II of the Federal Power Act 

14 (16 U.S.C 824 et seq.) is amended by adding at the end 

15 the following: 

16 ‘‘SEC. 215. ELECTRIC RELIABILITY. 

17 ‘‘(a) DEFINITIONS.—For purposes of this section: 

18 ‘‘(1) The term ‘bulk-power system’ means—

19 ‘‘(A) facilities and control systems nec20 essary for operating an interconnected electric 

21 energy transmission network (or any portion 

22 thereof); and 

23 ‘‘(B) electric energy from generation facili24 ties needed to maintain transmission system re25 liability. 
406

•HR 1640 IH 

1 The term does not include facilities used in the local 

2 distribution of electric energy. 

3 ‘‘(2) The terms ‘Electric Reliability Organiza4 tion’ and ‘ERO’ mean the organization certified by 

5 the Commission under subsection (c) the purpose of 

6 which is to establish and enforce reliability stand7 ards for the bulk-power system, subject to Commis8 sion review. 

9 ‘‘(3) The term ‘reliability standard’ means a re10 quirement, approved by the Commission under this 

11 section, to provide for reliable operation of the bulk12 power system. The term includes requirements for 

13 the operation of existing bulk-power system facilities, 

14 including cybersecurity protection, and the design of 

15 planned additions or modifications to such facilities 

16 to the extent necessary to provide for reliable oper17 ation of the bulk-power system, but the term does 

18 not include any requirement to enlarge such facilities 

19 or to construct new transmission capacity or genera20 tion capacity. 

21 ‘‘(4) The term ‘reliable operation’ means oper22 ating the elements of the bulk-power system within 

23 equipment and electric system thermal, voltage, and 

24 stability limits so that instability, uncontrolled sepa25 ration, or cascading failures of such system will not 
407

•HR 1640 IH 

1 occur as a result of a sudden disturbance, including 

2 a cybersecurity incident, or unanticipated failure of 

3 system elements. 

4 ‘‘(5) The term ‘Interconnection’ means a geo5 graphic area in which the operation of bulk-power 

6 system components is synchronized such that the 

7 failure of 1 or more of such components may ad8 versely affect the ability of the operators of other 

9 components within the system to maintain reliable 

10 operation of the facilities within their control. 

11 ‘‘(6) The term ‘transmission organization’ 

12 means a Regional Transmission Organization, Inde13 pendent System Operator, independent transmission 

14 provider, or other transmission organization finally 

15 approved by the Commission for the operation of 

16 transmission facilities. 

17 ‘‘(7) The term ‘regional entity’ means an entity 

18 having enforcement authority pursuant to subsection 

19 (e)(4). 

20 ‘‘(8) The term ‘cybersecurity incident’ means a 

21 malicious act or suspicious event that disrupts, or 

22 was an attempt to disrupt, the operation of those 

23 programmable electronic devices and communication 

24 networks including hardware, software and data that 
408

•HR 1640 IH 

1 are essential to the reliable operation of the bulk 

2 power system. 

3 ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 

4 Commission shall have jurisdiction, within the United 

5 States, over the ERO certified by the Commission under 

6 subsection (c), any regional entities, and all users, owners 

7 and operators of the bulk-power system, including but not 

8 limited to the entities described in section 201(f), for pur9 poses of approving reliability standards established under 

10 this section and enforcing compliance with this section. All 

11 users, owners and operators of the bulk-power system 

12 shall comply with reliability standards that take effect 

13 under this section. 

14 ‘‘(2) The Commission shall issue a final rule to imple15 ment the requirements of this section not later than 180 

16 days after the date of enactment of this section. 

17 ‘‘(c) CERTIFICATION.—Following the issuance of a 

18 Commission rule under subsection (b)(2), any person may 

19 submit an application to the Commission for certification 

20 as the Electric Reliability Organization. The Commission 

21 may certify 1 such ERO if the Commission determines 

22 that such ERO—

23 ‘‘(1) has the ability to develop and enforce, sub24 ject to subsection (e)(2), reliability standards that 
409

•HR 1640 IH 

1 provide for an adequate level of reliability of the 

2 bulk-power system; and 

3 ‘‘(2) has established rules that—

4 ‘‘(A) assure its independence of the users 

5 and owners and operators of the bulk-power 

6 system, while assuring fair stakeholder rep7 resentation in the selection of its directors and 

8 balanced decisionmaking in any ERO com9 mittee or subordinate organizational structure; 

10 ‘‘(B) allocate equitably reasonable dues, 

11 fees, and other charges among end users for all 

12 activities under this section; 

13 ‘‘(C) provide fair and impartial procedures 

14 for enforcement of reliability standards through 

15 the imposition of penalties in accordance with 

16 subsection (e) (including limitations on activi17 ties, functions, or operations, or other appro18 priate sanctions); 

19 ‘‘(D) provide for reasonable notice and op20 portunity for public comment, due process, 

21 openness, and balance of interests in developing 

22 reliability standards and otherwise exercising its 

23 duties; and 
410

•HR 1640 IH 

1 ‘‘(E) provide for taking, after certification, 

2 appropriate steps to gain recognition in Canada 

3 and Mexico. 

4 The total amount of all dues, fees, and other charges 

5 collected by the ERO in each of the fiscal years 

6 2006 through 2015 and allocated under subpara7 graph (B) shall not exceed $50,000,000. 

8 ‘‘(d) RELIABILITY STANDARDS.—(1) The Electric 

9 Reliability Organization shall file each reliability standard 

10 or modification to a reliability standard that it proposes 

11 to be made effective under this section with the Commis12 sion. 

13 ‘‘(2) The Commission may approve, by rule or order, 

14 a proposed reliability standard or modification to a reli15 ability standard if it determines that the standard is just, 

16 reasonable, not unduly discriminatory or preferential, and 

17 in the public interest. The Commission shall give due 

18 weight to the technical expertise of the Electric Reliability 

19 Organization with respect to the content of a proposed 

20 standard or modification to a reliability standard and to 

21 the technical expertise of a regional entity organized on 

22 an Interconnection-wide basis with respect to a reliability 

23 standard to be applicable within that Interconnection, but 

24 shall not defer with respect to the effect of a standard 
411

•HR 1640 IH 

1 on competition. A proposed standard or modification shall 

2 take effect upon approval by the Commission. 

3 ‘‘(3) The Electric Reliability Organization shall 

4 rebuttably presume that a proposal from a regional entity 

5 organized on an Interconnection-wide basis for a reliability 

6 standard or modification to a reliability standard to be ap7 plicable on an Interconnection-wide basis is just, reason8 able, and not unduly discriminatory or preferential, and 

9 in the public interest. 

10 ‘‘(4) The Commission shall remand to the Electric 

11 Reliability Organization for further consideration a pro12 posed reliability standard or a modification to a reliability 

13 standard that the Commission disapproves in whole or in 

14 part. 

15 ‘‘(5) The Commission, upon its own motion or upon 

16 complaint, may order the Electric Reliability Organization 

17 to submit to the Commission a proposed reliability stand18 ard or a modification to a reliability standard that ad19 dresses a specific matter if the Commission considers such 

20 a new or modified reliability standard appropriate to carry 

21 out this section. 

22 ‘‘(6) The final rule adopted under subsection (b)(2) 

23 shall include fair processes for the identification and time24 ly resolution of any conflict between a reliability standard 

25 and any function, rule, order, tariff, rate schedule, or 
412

•HR 1640 IH 

1 agreement accepted, approved, or ordered by the Commis2 sion applicable to a transmission organization. Such trans3 mission organization shall continue to comply with such 

4 function, rule, order, tariff, rate schedule or agreement ac5 cepted approved, or ordered by the Commission until—

6 ‘‘(A) the Commission finds a conflict exists be7 tween a reliability standard and any such provision; 

8 ‘‘(B) the Commission orders a change to such 

9 provision pursuant to section 206 of this part; and 

10 ‘‘(C) the ordered change becomes effective 

11 under this part. 

12 If the Commission determines that a reliability standard 

13 needs to be changed as a result of such a conflict, it shall 

14 order the ERO to develop and file with the Commission 

15 a modified reliability standard under paragraph (4) or (5) 

16 of this subsection. 

17 ‘‘(e) ENFORCEMENT.—(1) The ERO may impose, 

18 subject to paragraph (2), a penalty on a user or owner 

19 or operator of the bulk-power system for a violation of a 

20 reliability standard approved by the Commission under 

21 subsection (d) if the ERO, after notice and an opportunity 

22 for a hearing—

23 ‘‘(A) finds that the user or owner or operator 

24 has violated a reliability standard approved by the 

25 Commission under subsection (d); and 
413

•HR 1640 IH 

1 ‘‘(B) files notice and the record of the pro2 ceeding with the Commission. 

3 ‘‘(2) A penalty imposed under paragraph (1) may 

4 take effect not earlier than the 31st day after the ERO 

5 files with the Commission notice of the penalty and the 

6 record of proceedings. Such penalty shall be subject to re7 view by the Commission, on its own motion or upon appli8 cation by the user, owner or operator that is the subject 

9 of the penalty filed within 30 days after the date such 

10 notice is filed with the Commission. Application to the 

11 Commission for review, or the initiation of review by the 

12 Commission on its own motion, shall not operate as a stay 

13 of such penalty unless the Commission otherwise orders 

14 upon its own motion or upon application by the user, 

15 owner or operator that is the subject of such penalty. In 

16 any proceeding to review a penalty imposed under para17 graph (1), the Commission, after notice and opportunity 

18 for hearing (which hearing may consist solely of the record 

19 before the ERO and opportunity for the presentation of 

20 supporting reasons to affirm, modify, or set aside the pen21 alty), shall by order affirm, set aside, reinstate, or modify 

22 the penalty, and, if appropriate, remand to the ERO for 

23 further proceedings. The Commission shall implement ex24 pedited procedures for such hearings. 
414

•HR 1640 IH 

1 ‘‘(3) On its own motion or upon complaint, the Com2 mission may order compliance with a reliability standard 

3 and may impose a penalty against a user or owner or oper4 ator of the bulk-power system if the Commission finds, 

5 after notice and opportunity for a hearing, that the user 

6 or owner or operator of the bulk-power system has en7 gaged or is about to engage in any acts or practices that 

8 constitute or will constitute a violation of a reliability 

9 standard. 

10 ‘‘(4) The Commission shall issue regulations author11 izing the ERO to enter into an agreement to delegate au12 thority to a regional entity for the purpose of proposing 

13 reliability standards to the ERO and enforcing reliability 

14 standards under paragraph (1) if—

15 ‘‘(A) the regional entity is governed by—

16 ‘‘(i) an independent board; 

17 ‘‘(ii) a balanced stakeholder board; or 

18 ‘‘(iii) a combination independent and bal19 anced stakeholder board. 

20 ‘‘(B) the regional entity otherwise satisfies the 

21 provisions of subsection (c)(1) and (2); and 

22 ‘‘(C) the agreement promotes effective and effi23 cient administration of bulk-power system reliability. 

24 The Commission may modify such delegation. The ERO 

25 and the Commission shall rebuttably presume that a pro-
415

•HR 1640 IH 

1 posal for delegation to a regional entity organized on an 

2 Interconnection-wide basis promotes effective and efficient 

3 administration of bulk-power system reliability and should 

4 be approved. Such regulation may provide that the Com5 mission may assign the ERO’s authority to enforce reli6 ability standards under paragraph (1) directly to a re7 gional entity consistent with the requirements of this para8 graph. 

9 ‘‘(5) The Commission may take such action as is nec10 essary or appropriate against the ERO or a regional entity 

11 to ensure compliance with a reliability standard or any 

12 Commission order affecting the ERO or a regional entity. 

13 ‘‘(6) Any penalty imposed under this section shall 

14 bear a reasonable relation to the seriousness of the viola15 tion and shall take into consideration the efforts of such 

16 user, owner, or operator to remedy the violation in a time17 ly manner. 

18 ‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA19 TION RULES.—The Electric Reliability Organization shall 

20 file with the Commission for approval any proposed rule 

21 or proposed rule change, accompanied by an explanation 

22 of its basis and purpose. The Commission, upon its own 

23 motion or complaint, may propose a change to the rules 

24 of the ERO. A proposed rule or proposed rule change shall 

25 take effect upon a finding by the Commission, after notice 
416

•HR 1640 IH 

1 and opportunity for comment, that the change is just, rea2 sonable, not unduly discriminatory or preferential, is in 

3 the public interest, and satisfies the requirements of sub4 section (c). 

5 ‘‘(g) RELIABILITY REPORTS.—The ERO shall con6 duct periodic assessments of the reliability and adequacy 

7 of the bulk-power system in North America. 

8 ‘‘(h) COORDINATION WITH CANADA AND MEXICO.—

9 The President is urged to negotiate international agree10 ments with the governments of Canada and Mexico to pro11 vide for effective compliance with reliability standards and 

12 the effectiveness of the ERO in the United States and 

13 Canada or Mexico. 

14 ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have 

15 authority to develop and enforce compliance with reli16 ability standards for only the bulk-power system. 

17 ‘‘(2) This section does not authorize the ERO or the 

18 Commission to order the construction of additional gen19 eration or transmission capacity or to set and enforce com20 pliance with standards for adequacy or safety of electric 

21 facilities or services. 

22 ‘‘(3) Nothing in this section shall be construed to pre23 empt any authority of any State to take action to ensure 

24 the safety, adequacy, and reliability of electric service 

25 within that State, as long as such action is not incon-
417

•HR 1640 IH 

1 sistent with any reliability standard, except that the State 

2 of New York may establish rules that result in greater 

3 reliability within that State, as long as such action does 

4 not result in lesser reliability outside the State than that 

5 provided by the reliability standards. 

6 ‘‘(4) Within 90 days of the application of the Electric 

7 Reliability Organization or other affected party, and after 

8 notice and opportunity for comment, the Commission shall 

9 issue a final order determining whether a State action is 

10 inconsistent with a reliability standard, taking into consid11 eration any recommendation of the ERO. 

12 ‘‘(5) The Commission, after consultation with the 

13 ERO and the State taking action, may stay the effective14 ness of any State action, pending the Commission’s 

15 issuance of a final order. 

16 ‘‘(j) REGIONAL ADVISORY BODIES.—The Commis17 sion shall establish a regional advisory body on the petition 

of at least 2 18 ⁄3 of the States within a region that have more 

than 1 19 ⁄2 of their electric load served within the region. A 

20 regional advisory body shall be composed of 1 member 

21 from each participating State in the region, appointed by 

22 the Governor of each State, and may include representa23 tives of agencies, States, and provinces outside the United 

24 States. A regional advisory body may provide advice to the 

25 Electric Reliability Organization, a regional entity, or the 
418

•HR 1640 IH 

1 Commission regarding the governance of an existing or 

2 proposed regional entity within the same region, whether 

3 a standard proposed to apply within the region is just, 

4 reasonable, not unduly discriminatory or preferential, and 

5 in the public interest, whether fees proposed to be assessed 

6 within the region are just, reasonable, not unduly discrimi7 natory or preferential, and in the public interest and any 

8 other responsibilities requested by the Commission. The 

9 Commission may give deference to the advice of any such 

10 regional advisory body if that body is organized on an 

11 Interconnection-wide basis. 

12 ‘‘(k) ALASKA AND HAWAII.—The provisions of this 

13 section do not apply to Alaska or Hawaii.’’. 

14 (b) STATUS OF ERO.—The Electric Reliability Orga15 nization certified by the Federal Energy Regulatory Com16 mission under section 215(c) of the Federal Power Act 

17 and any regional entity delegated enforcement authority 

18 pursuant to section 215(e)(4) of that Act are not depart19 ments, agencies, or instrumentalities of the United States 

20 Government. 

21 (c) LIMITATION ON ANNUAL APPROPRIATIONS.—

22 There is authorized to be appropriated not more than 

23 $50,000,000 per year for fiscal years 2006 through 2015 

24 for all activities under the amendment made by subsection 

25 (a). 
419

•HR 1640 IH 

1 Subtitle B—Transmission 

2 Infrastructure Modernization 

3 SEC. 1221. SITING OF INTERSTATE ELECTRIC TRANS4 MISSION FACILITIES. 

5 (a) AMENDMENT OF FEDERAL POWER ACT.—Part 

6 II of the Federal Power Act is amended by adding at the 

7 end the following: 

8 ‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANS9 MISSION FACILITIES. 

10 ‘‘(a) DESIGNATION OF NATIONAL INTEREST ELEC11 TRIC TRANSMISSION CORRIDORS.—

12 ‘‘(1) TRANSMISSION CONGESTION STUDY.—

13 Within 1 year after the enactment of this section, 

14 and every 3 years thereafter, the Secretary of En15 ergy, in consultation with affected States, shall con16 duct a study of electric transmission congestion. 

17 After considering alternatives and recommendations 

18 from interested parties, including an opportunity for 

19 comment from affected States, the Secretary shall 

20 issue a report, based on such study, which may des21 ignate any geographic area experiencing electric en22 ergy transmission capacity constraints or congestion 

23 that adversely affects consumers as a national inter24 est electric transmission corridor. The Secretary 

25 shall conduct the study and issue the report in con-
420

•HR 1640 IH 

1 sultation with any appropriate regional entity ref2 erenced in section 215 of this Act. 

3 ‘‘(2) CONSIDERATIONS.—In determining wheth4 er to designate a national interest electric trans5 mission corridor referred to in paragraph (1) under 

6 this section, the Secretary may consider whether—

7 ‘‘(A) the economic vitality and development 

8 of the corridor, or the end markets served by 

9 the corridor, may be constrained by lack of ade10 quate or reasonably priced electricity; 

11 ‘‘(B)(i) economic growth in the corridor, or 

12 the end markets served by the corridor, may be 

13 jeopardized by reliance on limited sources of en14 ergy; and 

15 ‘‘(ii) a diversification of supply is war16 ranted; 

17 ‘‘(C) the energy independence of the 

18 United States would be served by the designa19 tion; 

20 ‘‘(D) the designation would be in the inter21 est of national energy policy; and 

22 ‘‘(E) the designation would enhance na23 tional defense and homeland security. 

24 ‘‘(b) CONSTRUCTION PERMIT.—Except as provided 

25 in subsection (i), the Commission is authorized, after no-
421

•HR 1640 IH 

1 tice and an opportunity for hearing, to issue a permit or 

2 permits for the construction or modification of electric 

3 transmission facilities in a national interest electric trans4 mission corridor designated by the Secretary under sub5 section (a) if the Commission finds that—

6 ‘‘(1)(A) a State in which the transmission fa7 cilities are to be constructed or modified is without 

8 authority to—

9 ‘‘(i) approve the siting of the facilities; or 

10 ‘‘(ii) consider the interstate benefits ex11 pected to be achieved by the proposed construc12 tion or modification of transmission facilities in 

13 the State; 

14 ‘‘(B) the applicant for a permit is a transmit15 ting utility under this Act but does not qualify to 

16 apply for a permit or siting approval for the pro17 posed project in a State because the applicant does 

18 not serve end-use customers in the State; or 

19 ‘‘(C) a State commission or other entity that 

20 has authority to approve the siting of the facilities 

21 has—

22 ‘‘(i) withheld approval for more than 1 

23 year after the filing of an application pursuant 

24 to applicable law seeking approval or 1 year 

25 after the designation of the relevant national in-
422

•HR 1640 IH 

1 terest electric transmission corridor, whichever 

2 is later; or 

3 ‘‘(ii) conditioned its approval in such a 

4 manner that the proposed construction or modi5 fication will not significantly reduce trans6 mission congestion in interstate commerce or is 

7 not economically feasible; 

8 ‘‘(2) the facilities to be authorized by the per9 mit will be used for the transmission of electric en10 ergy in interstate commerce; 

11 ‘‘(3) the proposed construction or modification 

12 is consistent with the public interest; 

13 ‘‘(4) the proposed construction or modification 

14 will significantly reduce transmission congestion in 

15 interstate commerce and protects or benefits con16 sumers; and 

17 ‘‘(5) the proposed construction or modification 

18 is consistent with sound national energy policy and 

19 will enhance energy independence. 

20 ‘‘(c) PERMIT APPLICATIONS.—Permit applications 

21 under subsection (b) shall be made in writing to the Com22 mission. The Commission shall issue rules setting forth 

23 the form of the application, the information to be con24 tained in the application, and the manner of service of no25 tice of the permit application upon interested persons. 
423

•HR 1640 IH 

1 ‘‘(d) COMMENTS.—In any proceeding before the 

2 Commission under subsection (b), the Commission shall 

3 afford each State in which a transmission facility covered 

4 by the permit is or will be located, each affected Federal 

5 agency and Indian tribe, private property owners, and 

6 other interested persons, a reasonable opportunity to 

7 present their views and recommendations with respect to 

8 the need for and impact of a facility covered by the permit. 

9 ‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 

10 subsection (b) for electric transmission facilities to be lo11 cated on property other than property owned by the 

12 United States or a State, if the permit holder cannot ac13 quire by contract, or is unable to agree with the owner 

14 of the property to the compensation to be paid for, the 

15 necessary right-of-way to construct or modify such trans16 mission facilities, the permit holder may acquire the right17 of-way by the exercise of the right of eminent domain in 

18 the district court of the United States for the district in 

19 which the property concerned is located, or in the appro20 priate court of the State in which the property is located. 

21 The practice and procedure in any action or proceeding 

22 for that purpose in the district court of the United States 

23 shall conform as nearly as may be with the practice and 

24 procedure in similar action or proceeding in the courts of 

25 the State where the property is situated. 
424

•HR 1640 IH 

1 ‘‘(f) STATE LAW.—Nothing in this section shall pre2 clude any person from constructing or modifying any 

3 transmission facility pursuant to State law. 

4 ‘‘(g) COMPENSATION.—Any exercise of eminent do5 main authority pursuant to this section shall be considered 

6 a taking of private property for which just compensation 

7 is due. Just compensation shall be an amount equal to 

8 the full fair market value of the property taken on the 

9 date of the exercise of eminent domain authority, except 

10 that the compensation shall exceed fair market value if 

11 necessary to make the landowner whole for decreases in 

12 the value of any portion of the land not subject to eminent 

13 domain. Any parcel of land acquired by eminent domain 

14 under this subsection shall be transferred back to the 

15 owner from whom it was acquired (or his heirs or assigns) 

16 if the land is not used for the construction or modification 

17 of electric transmission facilities within a reasonable pe18 riod of time after the acquisition. Other than construction, 

19 modification, operation, or maintenance of electric trans20 mission facilities and related facilities, property acquired 

21 under subsection (e) may not be used for any purpose (in22 cluding use for any heritage area, recreational trail, or 

23 park) without the consent of the owner of the parcel from 

24 whom the property was acquired (or the owner’s heirs or 

25 assigns). 
425

•HR 1640 IH 

1 ‘‘(h) COORDINATION OF FEDERAL AUTHORIZATIONS

2 FOR TRANSMISSION AND DISTRIBUTION FACILITIES.—

3 ‘‘(1) LEAD AGENCY.—If an applicant, or pro4 spective applicant, for a Federal authorization re5 lated to an electric transmission or distribution facil6 ity so requests, the Department of Energy (DOE) 

7 shall act as the lead agency for purposes of coordi8 nating all applicable Federal authorizations and re9 lated environmental reviews of the facility. For pur10 poses of this subsection, the term ‘Federal author11 ization’ means any authorization required under 

12 Federal law in order to site a transmission or dis13 tribution facility, including but not limited to such 

14 permits, special use authorizations, certifications, 

15 opinions, or other approvals as may be required, 

16 whether issued by a Federal or a State agency. To 

17 the maximum extent practicable under applicable 

18 Federal law, the Secretary of Energy shall coordi19 nate this Federal authorization and review process 

20 with any Indian tribes, multi-State entities, and 

21 State agencies that are responsible for conducting 

22 any separate permitting and environmental reviews 

23 of the facility, to ensure timely and efficient review 

24 and permit decisions. 
426

•HR 1640 IH 

1 ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 

2 agency, the Department of Energy, in consultation 

3 with agencies responsible for Federal authorizations 

4 and, as appropriate, with Indian tribes, multi-State 

5 entities, and State agencies that are willing to co6 ordinate their own separate permitting and environ7 mental reviews with the Federal authorization and 

8 environmental reviews, shall establish prompt and 

9 binding intermediate milestones and ultimate dead10 lines for the review of, and Federal authorization de11 cisions relating to, the proposed facility. The Sec12 retary of Energy shall ensure that once an applica13 tion has been submitted with such data as the Sec14 retary considers necessary, all permit decisions and 

15 related environmental reviews under all applicable 

16 Federal laws shall be completed within 1 year or, if 

17 a requirement of another provision of Federal law 

18 makes this impossible, as soon thereafter as is prac19 ticable. The Secretary of Energy also shall provide 

20 an expeditious pre-application mechanism for pro21 spective applicants to confer with the agencies in22 volved to have each such agency determine and com23 municate to the prospective applicant within 60 days 

24 of when the prospective applicant submits a request 

25 for such information concerning—
427

•HR 1640 IH 

1 ‘‘(A) the likelihood of approval for a poten2 tial facility; and 

3 ‘‘(B) key issues of concern to the agencies 

4 and public. 

5 ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW

6 AND RECORD OF DECISION.—As lead agency head, 

7 the Secretary of Energy, in consultation with the af8 fected agencies, shall prepare a single environmental 

9 review document, which shall be used as the basis 

10 for all decisions on the proposed project under Fed11 eral law. The document may be an environmental as12 sessment or environmental impact statement under 

13 the National Environmental Policy Act of 1969 if 

14 warranted, or such other form of analysis as may be 

15 warranted. The Secretary of Energy and the heads 

16 of other agencies shall streamline the review and 

17 permitting of transmission and distribution facilities 

18 within corridors designated under section 503 of the 

19 Federal Land Policy and Management Act (43 

20 U.S.C. 1763) by fully taking into account prior anal21 yses and decisions relating to the corridors. Such 

22 document shall include consideration by the relevant 

23 agencies of any applicable criteria or other matters 

24 as required under applicable laws. 
428

•HR 1640 IH 

1 ‘‘(4) APPEALS.—In the event that any agency 

2 has denied a Federal authorization required for a 

3 transmission or distribution facility, or has failed to 

4 act by the deadline established by the Secretary pur5 suant to this section for deciding whether to issue 

6 the authorization, the applicant or any State in 

7 which the facility would be located may file an ap8 peal with the Secretary, who shall, in consultation 

9 with the affected agency, review the denial or take 

10 action on the pending application. Based on the 

11 overall record and in consultation with the affected 

12 agency, the Secretary may then either issue the nec13 essary authorization with any appropriate condi14 tions, or deny the application. The Secretary shall 

15 issue a decision within 90 days of the filing of the 

16 appeal. In making a decision under this paragraph, 

17 the Secretary shall comply with applicable require18 ments of Federal law, including any requirements of 

19 the Endangered Species Act, the Clean Water Act, 

20 the National Forest Management Act, the National 

21 Environmental Policy Act of 1969, and the Federal 

22 Land Policy and Management Act. 

23 ‘‘(5) CONFORMING REGULATIONS AND MEMO24 RANDA OF UNDERSTANDING.—Not later than 18 

25 months after the date of enactment of this section, 
429

•HR 1640 IH 

1 the Secretary of Energy shall issue any regulations 

2 necessary to implement this subsection. Not later 

3 than 1 year after the date of enactment of this sec4 tion, the Secretary and the heads of all Federal 

5 agencies with authority to issue Federal authoriza6 tions shall enter into Memoranda of Understanding 

7 to ensure the timely and coordinated review and per8 mitting of electricity transmission and distribution 

9 facilities. The head of each Federal agency with au10 thority to issue a Federal authorization shall des11 ignate a senior official responsible for, and dedicate 

12 sufficient other staff and resources to ensure, full 

13 implementation of the DOE regulations and any 

14 Memoranda. Interested Indian tribes, multi-State 

15 entities, and State agencies may enter such Memo16 randa of Understanding. 

17 ‘‘(6) DURATION AND RENEWAL.—Each Federal 

18 land use authorization for an electricity transmission 

19 or distribution facility shall be issued—

20 ‘‘(A) for a duration, as determined by the 

21 Secretary of Energy, commensurate with the 

22 anticipated use of the facility, and 

23 ‘‘(B) with appropriate authority to manage 

24 the right-of-way for reliability and environ25 mental protection. 
430

•HR 1640 IH 

1 Upon the expiration of any such authorization (in2 cluding an authorization issued prior to enactment 

3 of this section), the authorization shall be reviewed 

4 for renewal taking fully into account reliance on 

5 such electricity infrastructure, recognizing its impor6 tance for public health, safety and economic welfare 

7 and as a legitimate use of Federal lands. 

8 ‘‘(7) MAINTAINING AND ENHANCING THE

9 TRANSMISSION INFRASTRUCTURE.—In exercising the 

10 responsibilities under this section, the Secretary of 

11 Energy shall consult regularly with the Federal En12 ergy Regulatory Commission (FERC), FERC-ap13 proved electric reliability organizations (including re14 lated regional entities), and FERC-approved Re15 gional Transmission Organizations and Independent 

16 System Operators. 

17 ‘‘(i) INTERSTATE COMPACTS.—The consent of Con18 gress is hereby given for 3 or more contiguous States to 

19 enter into an interstate compact, subject to approval by 

20 Congress, establishing regional transmission siting agen21 cies to facilitate siting of future electric energy trans22 mission facilities within such States and to carry out the 

23 electric energy transmission siting responsibilities of such 

24 States. The Secretary of Energy may provide technical as25 sistance to regional transmission siting agencies estab-
431

•HR 1640 IH 

1 lished under this subsection. Such regional transmission 

2 siting agencies shall have the authority to review, certify, 

3 and permit siting of transmission facilities, including fa4 cilities in national interest electric transmission corridors 

5 (other than facilities on property owned by the United 

6 States). The Commission shall have no authority to issue 

7 a permit for the construction or modification of electric 

8 transmission facilities within a State that is a party to 

9 a compact, unless the members of a compact are in dis10 agreement and the Secretary makes, after notice and an 

11 opportunity for a hearing, the finding described in sub12 section (b)(1)(C). 

13 ‘‘(j) SAVINGS CLAUSE.—Nothing in this section shall 

14 be construed to affect any requirement of the environ15 mental laws of the United States, including, but not lim16 ited to, the National Environmental Policy Act of 1969. 

17 Subsection (h)(4) of this section shall not apply to any 

18 Congressionally-designated components of the National 

19 Wilderness Preservation System, the National Wild and 

20 Scenic Rivers System, or the National Park system (in21 cluding National Monuments therein). 

22 ‘‘(k) ERCOT.—This section shall not apply within 

23 the area referred to in section 212(k)(2)(A).’’. 

24 (b) REPORTS TO CONGRESS ON CORRIDORS AND

25 RIGHTS OF WAY ON FEDERAL LANDS.—The Secretary of 
432

•HR 1640 IH 

1 the Interior, the Secretary of Energy, the Secretary of Ag2 riculture, and the Chairman of the Council on Environ3 mental Quality shall, within 90 days of the date of enact4 ment of this subsection, submit a joint report to Congress 

5 identifying each of the following: 

6 (1) All existing designated transmission and 

7 distribution corridors on Federal land and the status 

8 of work related to proposed transmission and dis9 tribution corridor designations under Title V of the 

10 Federal Land Policy and Management Act (43 

11 U.S.C. 1761 et. Seq.), the schedule for completing 

12 such work, any impediments to completing the work, 

13 and steps that Congress could take to expedite the 

14 process. 

15 (2) The number of pending applications to lo16 cate transmission and distribution facilities on Fed17 eral lands, key information relating to each such fa18 cility, how long each application has been pending, 

19 the schedule for issuing a timely decision as to each 

20 facility, and progress in incorporating existing and 

21 new such rights-of-way into relevant land use and 

22 resource management plans or their equivalent. 

23 (3) The number of existing transmission and 

24 distribution rights-of-way on Federal lands that will 

25 come up for renewal within the following 5, 10, and 
433

•HR 1640 IH 

1 15 year periods, and a description of how the Secre2 taries plan to manage such renewals. 

3 SEC. 1222. THIRD-PARTY FINANCE. 

4 (a) EXISTING FACILITIES.—The Secretary of Energy 

5 (hereinafter in this section referred to as the ‘‘Secretary’’), 

6 acting through the Administrator of the Western Area 

7 Power Administration (hereinafter in this section referred 

8 to as ‘‘WAPA’’), or through the Administrator of the 

9 Southwestern Power Administration (hereinafter in this 

10 section referred to as ‘‘SWPA’’), or both, may design, de11 velop, construct, operate, maintain, or own, or participate 

12 with other entities in designing, developing, constructing, 

13 operating, maintaining, or owning, an electric power 

14 transmission facility and related facilities (‘‘Project’’) 

15 needed to upgrade existing transmission facilities owned 

16 by SWPA or WAPA if the Secretary of Energy, in con17 sultation with the applicable Administrator, determines 

18 that the proposed Project—

19 (1)(A) is located in a national interest electric 

20 transmission corridor designated under section 

21 216(a) of the Federal Power Act and will reduce 

22 congestion of electric transmission in interstate com23 merce; or 
434

•HR 1640 IH 

1 (B) is necessary to accommodate an actual or 

2 projected increase in demand for electric trans3 mission capacity; 

4 (2) is consistent with—

5 (A) transmission needs identified, in a 

6 transmission expansion plan or otherwise, by 

7 the appropriate Regional Transmission Organi8 zation or Independent System Operator (as de9 fined in the Federal Power Act), if any, or ap10 proved regional reliability organization; and 

11 (B) efficient and reliable operation of the 

12 transmission grid; and 

13 (3) would be operated in conformance with pru14 dent utility practice. 

15 (b) NEW FACILITIES.—The Secretary, acting 

16 through WAPA or SWPA, or both, may design, develop, 

17 construct, operate, maintain, or own, or participate with 

18 other entities in designing, developing, constructing, oper19 ating, maintaining, or owning, a new electric power trans20 mission facility and related facilities (‘‘Project’’) located 

21 within any State in which WAPA or SWPA operates if 

22 the Secretary, in consultation with the applicable Adminis23 trator, determines that the proposed Project—

24 (1)(A) is located in an area designated under 

25 section 216(a) of the Federal Power Act and will re-
435

•HR 1640 IH 

1 duce congestion of electric transmission in interstate 

2 commerce; or 

3 (B) is necessary to accommodate an actual or 

4 projected increase in demand for electric trans5 mission capacity; 

6 (2) is consistent with—

7 (A) transmission needs identified, in a 

8 transmission expansion plan or otherwise, by 

9 the appropriate Regional Transmission Organi10 zation or Independent System Operator, if any, 

11 or approved regional reliability organization; 

12 and 

13 (B) efficient and reliable operation of the 

14 transmission grid; 

15 (3) will be operated in conformance with pru16 dent utility practice; 

17 (4) will be operated by, or in conformance with 

18 the rules of, the appropriate (A) Regional Trans19 mission Organization or Independent System Oper20 ator, if any, or (B) if such an organization does not 

21 exist, regional reliability organization; and 

22 (5) will not duplicate the functions of existing 

23 transmission facilities or proposed facilities which 

24 are the subject of ongoing or approved siting and re25 lated permitting proceedings. 
436

•HR 1640 IH 

1 (c) OTHER FUNDS.—

2 (1) IN GENERAL.—In carrying out a Project 

3 under subsection (a) or (b), the Secretary may ac4 cept and use funds contributed by another entity for 

5 the purpose of carrying out the Project. 

6 (2) AVAILABILITY.—The contributed funds 

7 shall be available for expenditure for the purpose of 

8 carrying out the Project—

9 (A) without fiscal year limitation; and 

10 (B) as if the funds had been appropriated 

11 specifically for that Project. 

12 (3) ALLOCATION OF COSTS.—In carrying out a 

13 Project under subsection (a) or (b), any costs of the 

14 Project not paid for by contributions from another 

15 entity shall be collected through rates charged to 

16 customers using the new transmission capability pro17 vided by the Project and allocated equitably among 

18 these project beneficiaries using the new trans19 mission capability. 

20 (d) RELATIONSHIP TO OTHER LAWS.—Nothing in 

21 this section affects any requirement of—

22 (1) any Federal environmental law, including 

23 the National Environmental Policy Act of 1969 (42 

24 U.S.C. 4321 et seq.); 
437

•HR 1640 IH 

1 (2) any Federal or State law relating to the 

2 siting of energy facilities; or 

3 (3) any existing authorizing statutes. 

4 (e) SAVINGS CLAUSE.—Nothing in this section shall 

5 constrain or restrict an Administrator in the utilization 

6 of other authority delegated to the Administrator of 

7 WAPA or SWPA. 

8 (f) SECRETARIAL DETERMINATIONS.—Any deter9 mination made pursuant to subsections (a) or (b) shall 

10 be based on findings by the Secretary using the best avail11 able data. 

12 (g) MAXIMUM FUNDING AMOUNT.—The Secretary 

13 shall not accept and use more than $100,000,000 under 

14 subsection (c)(1) for the period encompassing fiscal years 

15 2006 through 2015. 

16 SEC. 1223. TRANSMISSION SYSTEM MONITORING. 

17 Within 6 months after the date of enactment of this 

18 Act, the Secretary of Energy and the Federal Energy Reg19 ulatory Commission shall study and report to Congress on 

20 the steps which must be taken to establish a system to 

21 make available to all transmission system owners and Re22 gional Transmission Organizations (as defined in the Fed23 eral Power Act) within the Eastern and Western Inter24 connections real-time information on the functional status 

25 of all transmission lines within such Interconnections. In 
438

•HR 1640 IH 

1 such study, the Commission shall assess technical means 

2 for implementing such transmission information system 

3 and identify the steps the Commission or Congress must 

4 take to require the implementation of such system. 

5 SEC. 1224. ADVANCED TRANSMISSION TECHNOLOGIES. 

6 (a) AUTHORITY.—The Federal Energy Regulatory 

7 Commission, in the exercise of its authorities under the 

8 Federal Power Act and the Public Utility Regulatory Poli9 cies Act of 1978, shall encourage the deployment of ad10 vanced transmission technologies. 

11 (b) DEFINITION.—For the purposes of this section, 

12 the term ‘‘advanced transmission technologies’’ means 

13 technologies that increase the capacity, efficiency, or reli14 ability of existing or new transmission facilities, including, 

15 but not limited to—

16 (1) high-temperature lines (including super17 conducting cables); 

18 (2) underground cables; 

19 (3) advanced conductor technology (including 

20 advanced composite conductors, high-temperature 

21 low-sag conductors, and fiber optic temperature 

22 sensing conductors); 

23 (4) high-capacity ceramic electric wire, connec24 tors, and insulators; 
439

•HR 1640 IH 

1 (5) optimized transmission line configurations 

2 (including multiple phased transmission lines); 

3 (6) modular equipment; 

4 (7) wireless power transmission; 

5 (8) ultra-high voltage lines; 

6 (9) high-voltage DC technology; 

7 (10) flexible AC transmission systems; 

8 (11) energy storage devices (including pumped 

9 hydro, compressed air, superconducting magnetic en10 ergy storage, flywheels, and batteries); 

11 (12) controllable load; 

12 (13) distributed generation (including PV, fuel 

13 cells, microturbines); 

14 (14) enhanced power device monitoring; 

15 (15) direct system state sensors; 

16 (16) fiber optic technologies; 

17 (17) power electronics and related software (in18 cluding real time monitoring and analytical soft19 ware); and 

20 (18) any other technologies the Commission 

21 considers appropriate. 

22 (c) OBSOLETE OR IMPRACTICABLE TECH23 NOLOGIES.—The Commission is authorized to cease en24 couraging the deployment of any technology described in 
440

•HR 1640 IH 

1 this section on a finding that such technology has been 

2 rendered obsolete or otherwise impracticable to deploy. 

3 SEC. 1225. ELECTRIC TRANSMISSION AND DISTRIBUTION 

4 PROGRAMS. 

5 (a) ELECTRIC TRANSMISSION AND DISTRIBUTION

6 PROGRAM.—The Secretary of Energy (hereinafter in this 

7 section referred to as the ‘‘Secretary’’) acting through the 

8 Director of the Office of Electric Transmission and Dis9 tribution shall establish a comprehensive research, devel10 opment, demonstration and commercial application pro11 gram to promote improved reliability and efficiency of 

12 electrical transmission and distribution systems. This pro13 gram shall include—

14 (1) advanced energy delivery and storage tech15 nologies, materials, and systems, including new 

16 transmission technologies, such as flexible alter17 nating current transmission systems, composite con18 ductor materials and other technologies that enhance 

19 reliability, operational flexibility, or power-carrying 

20 capability; 

21 (2) advanced grid reliability and efficiency tech22 nology development; 

23 (3) technologies contributing to significant load 

24 reductions; 
441

•HR 1640 IH 

1 (4) advanced metering, load management, and 

2 control technologies; 

3 (5) technologies to enhance existing grid compo4 nents; 

5 (6) the development and use of high-tempera6 ture superconductors to—

7 (A) enhance the reliability, operational 

8 flexibility, or power-carrying capability of elec9 tric transmission or distribution systems; or 

10 (B) increase the efficiency of electric en11 ergy generation, transmission, distribution, or 

12 storage systems; 

13 (7) integration of power systems, including sys14 tems to deliver high-quality electric power, electric 

15 power reliability, and combined heat and power; 

16 (8) supply of electricity to the power grid by 

17 small scale, distributed and residential-based power 

18 generators; 

19 (9) the development and use of advanced grid 

20 design, operation and planning tools; 

21 (10) any other infrastructure technologies, as 

22 appropriate; and 

23 (11) technology transfer and education. 

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

25 date of the enactment of this legislation, the Secretary, 
442

•HR 1640 IH 

1 in consultation with other appropriate Federal agencies, 

2 shall prepare and transmit to Congress a 5-year program 

3 plan to guide activities under this section. In preparing 

4 the program plan, the Secretary may consult with utilities, 

5 energy services providers, manufacturers, institutions of 

6 higher education, other appropriate State and local agen7 cies, environmental organizations, professional and tech8 nical societies, and any other persons the Secretary con9 siders appropriate. 

10 (c) IMPLEMENTATION.—The Secretary shall consider 

11 implementing this program using a consortium of indus12 try, university and national laboratory participants. 

13 (d) REPORT.—Not later than 2 years after the trans14 mittal of the plan under subsection (b), the Secretary shall 

15 transmit a report to Congress describing the progress 

16 made under this section and identifying any additional re17 sources needed to continue the development and commer18 cial application of transmission and distribution infra19 structure technologies. 

20 (e) POWER DELIVERY RESEARCH INITIATIVE.—

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

22 a research, development, demonstration, and com23 mercial application initiative specifically focused on 

24 power delivery utilizing components incorporating 

25 high temperature superconductivity. 
443

•HR 1640 IH 

1 (2) GOALS.—The goals of this initiative shall be 

2 to—

3 (A) establish facilities to develop high tem4 perature superconductivity power applications 

5 in partnership with manufacturers and utilities; 

6 (B) provide technical leadership for estab7 lishing reliability for high temperature super8 conductivity power applications including suit9 able modeling and analysis; 

10 (C) facilitate commercial transition toward 

11 direct current power transmission, storage, and 

12 use for high power systems utilizing high tem13 perature superconductivity; and 

14 (D) facilitate the integration of very low 

15 impedance high temperature superconducting 

16 wires and cables in existing electric networks to 

17 improve system performance, power flow control 

18 and reliability. 

19 (3) REQUIREMENTS.—The initiative shall in20 clude—

21 (A) feasibility analysis, planning, research, 

22 and design to construct demonstrations of 

23 superconducting links in high power, direct cur24 rent and controllable alternating current trans25 mission systems; 
444

•HR 1640 IH 

1 (B) public-private partnerships to dem2 onstrate deployment of high temperature super3 conducting cable into testbeds simulating a re4 alistic transmission grid and under varying 

5 transmission conditions, including actual grid 

6 insertions; and 

7 (C) testbeds developed in cooperation with 

8 national laboratories, industries, and univer9 sities to demonstrate these technologies, pre10 pare the technologies for commercial introduc11 tion, and address cost or performance road12 blocks to successful commercial use. 

13 (4) AUTHORIZATION OF APPROPRIATIONS.—For 

14 purposes of carrying out this subsection, there are 

15 authorized to be appropriated—

16 (A) for fiscal year 2006, $15,000,000; 

17 (B) for fiscal year 2007, $20,000,000; 

18 (C) for fiscal year 2008, $30,000,000; 

19 (D) for fiscal year 2009, $35,000,000; and 

20 (E) for fiscal year 2010, $40,000,000. 

21 SEC. 1226. ADVANCED POWER SYSTEM TECHNOLOGY IN22 CENTIVE PROGRAM. 

23 (a) PROGRAM.—The Secretary of Energy is author24 ized to establish an Advanced Power System Technology 

25 Incentive Program to support the deployment of certain 
445

•HR 1640 IH 

1 advanced power system technologies and to improve and 

2 protect certain critical governmental, industrial, and com3 mercial processes. Funds provided under this section shall 

4 be used by the Secretary to make incentive payments to 

5 eligible owners or operators of advanced power system 

6 technologies to increase power generation through en7 hanced operational, economic, and environmental perform8 ance. Payments under this section may only be made upon 

9 receipt by the Secretary of an incentive payment applica10 tion establishing an applicant as either—

11 (1) a qualifying advanced power system tech12 nology facility; or 

13 (2) a qualifying security and assured power fa14 cility. 

15 (b) INCENTIVES.—Subject to availability of funds, a 

16 payment of 1.8 cents per kilowatt-hour shall be paid to 

17 the owner or operator of a qualifying advanced power sys18 tem technology facility under this section for electricity 

19 generated at such facility. An additional 0.7 cents per kilo20 watt-hour shall be paid to the owner or operator of a quali21 fying security and assured power facility for electricity 

22 generated at such facility. Any facility qualifying under 

23 this section shall be eligible for an incentive payment for 

24 up to, but not more than, the first 10,000,000 kilowatt25 hours produced in any fiscal year. 
446

•HR 1640 IH 

1 (c) ELIGIBILITY.—For purposes of this section: 

2 (1) QUALIFYING ADVANCED POWER SYSTEM

3 TECHNOLOGY FACILITY.—The term ‘‘qualifying ad4 vanced power system technology facility’’ means a 

5 facility using an advanced fuel cell, turbine, or hy6 brid power system or power storage system to gen7 erate or store electric energy. 

8 (2) QUALIFYING SECURITY AND ASSURED

9 POWER FACILITY.—The term ‘‘qualifying security 

10 and assured power facility’’ means a qualifying ad11 vanced power system technology facility determined 

12 by the Secretary of Energy, in consultation with the 

13 Secretary of Homeland Security, to be in critical 

14 need of secure, reliable, rapidly available, high-qual15 ity power for critical governmental, industrial, or 

16 commercial applications. 

17 (d) AUTHORIZATION.—There are authorized to be ap18 propriated to the Secretary of Energy for the purposes 

19 of this section, $10,000,000 for each of the fiscal years 

20 2006 through 2012. 

21 SEC. 1227. OFFICE OF ELECTRIC TRANSMISSION AND DIS22 TRIBUTION. 

23 (a) CREATION OF AN OFFICE OF ELECTRIC TRANS24 MISSION AND DISTRIBUTION.—Title II of the Department 

25 of Energy Organization Act (42 U.S.C. 7131 et seq.) (as 
447

•HR 1640 IH 

1 amended by section 502(a) of this Act) is amended by in2 serting the following after section 217, as added by title 

3 V of this Act: 

4 ‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DIS5 TRIBUTION. 

6 ‘‘(a) ESTABLISHMENT.—There is established within 

7 the Department an Office of Electric Transmission and 

8 Distribution. This Office shall be headed by a Director, 

9 subject to the authority of the Secretary. The Director 

10 shall be appointed by the Secretary. The Director shall 

11 be compensated at the annual rate prescribed for level IV 

12 of the Executive Schedule under section 5315 of title 5, 

13 United States Code. 

14 ‘‘(b) DIRECTOR.—The Director shall—

15 ‘‘(1) coordinate and develop a comprehensive, 

16 multi-year strategy to improve the Nation’s elec17 tricity transmission and distribution; 

18 ‘‘(2) implement or, where appropriate, coordi19 nate the implementation of, the recommendations 

20 made in the Secretary’s May 2002 National Trans21 mission Grid Study; 

22 ‘‘(3) oversee research, development, and dem23 onstration to support Federal energy policy related 

24 to electricity transmission and distribution; 
448

•HR 1640 IH 

1 ‘‘(4) grant authorizations for electricity import 

2 and export pursuant to section 202(c), (d), (e), and 

3 (f) of the Federal Power Act (16 U.S.C. 824a); 

4 ‘‘(5) perform other functions, assigned by the 

5 Secretary, related to electricity transmission and dis6 tribution; and 

7 ‘‘(6) develop programs for workforce training in 

8 power and transmission engineering.’’. 

9 (b) CONFORMING AMENDMENTS.—(1) The table of 

10 contents of the Department of Energy Organization Act 

11 (42 U.S.C. 7101 note) is amended by inserting after the 

12 item relating to section 217 the following new item:

‘‘Sec. 218. Office of Electric Transmission and Distribution.’’.

13 (2) Section 5315 of title 5, United States Code, is 

14 amended by inserting after the item relating to ‘‘Inspector 

15 General, Department of Energy.’’ the following: 

16 ‘‘Director, Office of Electric Transmission and 

17 Distribution, Department of Energy.’’. 

18 Subtitle C—Transmission 

19 Operation Improvements 

20 SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 

21 Part II of the Federal Power Act (16 U.S.C. 824 et 

22 seq.) is amended by inserting after section 211 the fol23 lowing new section: 
449

•HR 1640 IH 

1 ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT2 TING UTILITIES. 

3 ‘‘(a) TRANSMISSION SERVICES.—Subject to section 

4 212(h), the Commission may, by rule or order, require an 

5 unregulated transmitting utility to provide transmission 

6 services—

7 ‘‘(1) at rates that are comparable to those that 

8 the unregulated transmitting utility charges itself; 

9 and 

10 ‘‘(2) on terms and conditions (not relating to 

11 rates) that are comparable to those under which 

12 such unregulated transmitting utility provides trans13 mission services to itself and that are not unduly 

14 discriminatory or preferential. 

15 ‘‘(b) EXEMPTION.—The Commission shall exempt 

16 from any rule or order under this section any unregulated 

17 transmitting utility that—

18 ‘‘(1) sells no more than 4,000,000 megawatt 

19 hours of electricity per year; or 

20 ‘‘(2) does not own or operate any transmission 

21 facilities that are necessary for operating an inter22 connected transmission system (or any portion 

23 thereof); or 

24 ‘‘(3) meets other criteria the Commission deter25 mines to be in the public interest. 
450

•HR 1640 IH 

1 ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The re2 quirements of subsection (a) shall not apply to facilities 

3 used in local distribution. 

4 ‘‘(d) EXEMPTION TERMINATION.—Whenever the 

5 Commission, after an evidentiary hearing held upon a 

6 complaint and after giving consideration to reliability 

7 standards established under section 215, finds on the 

8 basis of a preponderance of the evidence that any exemp9 tion granted pursuant to subsection (b) unreasonably im10 pairs the continued reliability of an interconnected trans11 mission system, it shall revoke the exemption granted to 

12 that transmitting utility. 

13 ‘‘(e) APPLICATION TO UNREGULATED TRANSMIT14 TING UTILITIES.—The rate changing procedures applica15 ble to public utilities under subsections (c) and (d) of sec16 tion 205 are applicable to unregulated transmitting utili17 ties for purposes of this section. 

18 ‘‘(f) REMAND.—In exercising its authority under 

19 paragraph (1) of subsection (a), the Commission may re20 mand transmission rates to an unregulated transmitting 

21 utility for review and revision where necessary to meet the 

22 requirements of subsection (a). 

23 ‘‘(g) OTHER REQUESTS.—The provision of trans24 mission services under subsection (a) does not preclude a 

25 request for transmission services under section 211. 
451

•HR 1640 IH 

1 ‘‘(h) LIMITATION.—The Commission may not require 

2 a State or municipality to take action under this section 

3 that would violate a private activity bond rule for purposes 

4 of section 141 of the Internal Revenue Code of 1986 (26 

5 U.S.C. 141). 

6 ‘‘(i) TRANSFER OF CONTROL OF TRANSMITTING FA7 CILITIES.—Nothing in this section authorizes the Commis8 sion to require an unregulated transmitting utility to 

9 transfer control or operational control of its transmitting 

10 facilities to an RTO or any other Commission-approved 

11 independent transmission organization designated to pro12 vide nondiscriminatory transmission access. 

13 ‘‘(j) DEFINITION.—For purposes of this section, the 

14 term ‘unregulated transmitting utility’ means an entity 

15 that—

16 ‘‘(1) owns or operates facilities used for the 

17 transmission of electric energy in interstate com18 merce; and 

19 ‘‘(2) is an entity described in section 201(f).’’. 

20 SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANS21 MISSION ORGANIZATIONS. 

22 It is the sense of Congress that, in order to promote 

23 fair, open access to electric transmission service, benefit 

24 retail consumers, facilitate wholesale competition, improve 

25 efficiencies in transmission grid management, promote 
452

•HR 1640 IH 

1 grid reliability, remove opportunities for unduly discrimi2 natory or preferential transmission practices, and provide 

3 for the efficient development of transmission infrastruc4 ture needed to meet the growing demands of competitive 

5 wholesale power markets, all transmitting utilities in inter6 state commerce should voluntarily become members of Re7 gional Transmission Organizations as defined in section 

8 3 of the Federal Power Act. 

9 SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION AP10 PLICATIONS PROGRESS REPORT. 

11 Not later than 120 days after the date of enactment 

12 of this section, the Federal Energy Regulatory Commis13 sion shall submit to Congress a report containing each of 

14 the following: 

15 (1) A list of all regional transmission organiza16 tion applications filed at the Commission pursuant 

17 to subpart F of part 35 of title 18, Code of Federal 

18 Regulations (in this section referred to as ‘‘Order 

19 No. 2000’’), including an identification of each pub20 lic utility and other entity included within the pro21 posed membership of the regional transmission orga22 nization. 

23 (2) A brief description of the status of each 

24 pending regional transmission organization applica25 tion, including a precise explanation of how each 
453

•HR 1640 IH 

1 fails to comply with the minimal requirements of 

2 Order No. 2000 and what steps need to be taken to 

3 bring each application into such compliance. 

4 (3) For any application that has not been fi5 nally approved by the Commission, a detailed de6 scription of every aspect of the application that the 

7 Commission has determined does not conform to the 

8 requirements of Order No. 2000. 

9 (4) For any application that has not been fi10 nally approved by the Commission, an explanation 

11 by the Commission of why the items described pur12 suant to paragraph (3) constitute material non13 compliance with the requirements of the Commis14 sion’s Order No. 2000 sufficient to justify denial of 

15 approval by the Commission. 

16 (5) For all regional transmission organization 

17 applications filed pursuant to the Commission’s 

18 Order No. 2000, whether finally approved or not—

19 (A) a discussion of that regional trans20 mission organization’s efforts to minimize rate 

21 seams between itself and—

22 (i) other regional transmission organi23 zations; and 

24 (ii) entities not participating in a re25 gional transmission organization; 
454

•HR 1640 IH 

1 (B) a discussion of the impact of such 

2 seams on consumers and wholesale competition; 

3 and 

4 (C) a discussion of minimizing cost-shifting 

5 on consumers. 

6 SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL 

7 TRANSMISSION ORGANIZATIONS. 

8 (a) DEFINITIONS.—For purposes of this section—

9 (1) APPROPRIATE FEDERAL REGULATORY AU10 THORITY.—The term ‘‘appropriate Federal regu11 latory authority’’ means—

12 (A) with respect to a Federal power mar13 keting agency (as defined in the Federal Power 

14 Act), the Secretary of Energy, except that the 

15 Secretary may designate the Administrator of a 

16 Federal power marketing agency to act as the 

17 appropriate Federal regulatory authority with 

18 respect to the transmission system of that Fed19 eral power marketing agency; and 

20 (B) with respect to the Tennessee Valley 

21 Authority, the Board of Directors of the Ten22 nessee Valley Authority. 

23 (2) FEDERAL UTILITY.—The term ‘‘Federal 

24 utility’’ means a Federal power marketing agency or 

25 the Tennessee Valley Authority. 
455

•HR 1640 IH 

1 (3) TRANSMISSION SYSTEM.—The term ‘‘trans2 mission system’’ means electric transmission facili3 ties owned, leased, or contracted for by the United 

4 States and operated by a Federal utility. 

5 (b) TRANSFER.—The appropriate Federal regulatory 

6 authority is authorized to enter into a contract, agreement 

7 or other arrangement transferring control and use of all 

8 or part of the Federal utility’s transmission system to an 

9 RTO or ISO (as defined in the Federal Power Act), ap10 proved by the Federal Energy Regulatory Commission. 

11 Such contract, agreement or arrangement shall include—

12 (1) performance standards for operation and 

13 use of the transmission system that the head of the 

14 Federal utility determines necessary or appropriate, 

15 including standards that assure recovery of all the 

16 Federal utility’s costs and expenses related to the 

17 transmission facilities that are the subject of the 

18 contract, agreement or other arrangement; consist19 ency with existing contracts and third-party financ20 ing arrangements; and consistency with said Federal 

21 utility’s statutory authorities, obligations, and limi22 tations; 

23 (2) provisions for monitoring and oversight by 

24 the Federal utility of the RTO’s or ISO’s fulfillment 

25 of the terms and conditions of the contract, agree-
456

•HR 1640 IH 

1 ment or other arrangement, including a provision for 

2 the resolution of disputes through arbitration or 

3 other means with the regional transmission organi4 zation or with other participants, notwithstanding 

5 the obligations and limitations of any other law re6 garding arbitration; and 

7 (3) a provision that allows the Federal utility to 

8 withdraw from the RTO or ISO and terminate the 

9 contract, agreement or other arrangement in accord10 ance with its terms. 

11 Neither this section, actions taken pursuant to it, nor any 

12 other transaction of a Federal utility using an RTO or 

13 ISO shall confer upon the Federal Energy Regulatory 

14 Commission jurisdiction or authority over the Federal util15 ity’s electric generation assets, electric capacity or energy 

16 that the Federal utility is authorized by law to market, 

17 or the Federal utility’s power sales activities. 

18 (c) EXISTING STATUTORY AND OTHER OBLIGA19 TIONS.—

20 (1) SYSTEM OPERATION REQUIREMENTS.—No 

21 statutory provision requiring or authorizing a Fed22 eral utility to transmit electric power or to construct, 

23 operate or maintain its transmission system shall be 

24 construed to prohibit a transfer of control and use 
457

•HR 1640 IH 

1 of its transmission system pursuant to, and subject 

2 to all requirements of subsection (b). 

3 (2) OTHER OBLIGATIONS.—This subsection 

4 shall not be construed to—

5 (A) suspend, or exempt any Federal utility 

6 from, any provision of existing Federal law, in7 cluding but not limited to any requirement or 

8 direction relating to the use of the Federal util9 ity’s transmission system, environmental protec10 tion, fish and wildlife protection, flood control, 

11 navigation, water delivery, or recreation; or 

12 (B) authorize abrogation of any contract 

13 or treaty obligation. 

14 (3) REPEAL.—Section 311 of title III of Appen15 dix B of the Act of October 27, 2000 (P.L. 106–

16 377, section 1(a)(2); 114 Stat. 1441, 1441A–80; 16 

17 U.S.C. 824n) is repealed. 

18 SEC. 1235. STANDARD MARKET DESIGN. 

19 (a) REMAND.—The Commission’s proposed rule20 making entitled ‘‘Remedying Undue Discrimination 

21 through Open Access Transmission Service and Standard 

22 Electricity Market Design’’ (Docket No. RM01–12–000) 

23 (‘‘SMD NOPR’’) is remanded to the Commission for re24 consideration. No final rule mandating a standard elec25 tricity market design pursuant to the proposed rule-
458

•HR 1640 IH 

1 making, including any rule or order of general applica2 bility within the scope of the proposed rulemaking, may 

3 be issued before October 31, 2006, or take effect before 

4 December 31, 2006. Any final rule issued by the Commis5 sion pursuant to the proposed rulemaking shall be pre6 ceded by a second notice of proposed rulemaking issued 

7 after the date of enactment of this Act and an opportunity 

8 for public comment. 

9 (b) SAVINGS CLAUSE.—This section shall not be con10 strued to modify or diminish any authority or obligation 

11 the Commission has under this Act, the Federal Power 

12 Act, or other applicable law, including, but not limited to, 

13 any authority to—

14 (1) issue any rule or order (of general or par15 ticular applicability) pursuant to any such authority 

16 or obligation; or 

17 (2) act on a filing or filings by 1 or more trans18 mitting utilities for the voluntary formation of a Re19 gional Transmission Organization or Independent 

20 System Operator (as defined in the Federal Power 

21 Act) (and related market structures or rules) or vol22 untary modification of an existing Regional Trans23 mission Organization or Independent System Oper24 ator (and related market structures or rules). 
459

•HR 1640 IH 

1 SEC. 1236. NATIVE LOAD SERVICE OBLIGATION. 

2 Part II of the Federal Power Act (16 U.S.C. 824 et 

3 seq.) is amended by adding at the end the following: 

4 ‘‘SEC. 217. NATIVE LOAD SERVICE OBLIGATION. 

5 ‘‘(a) MEETING SERVICE OBLIGATIONS.—(1) Any 

6 load-serving entity that, as of the date of enactment of 

7 this section—

8 ‘‘(A) owns generation facilities, markets the 

9 output of Federal generation facilities, or holds 

10 rights under 1 or more wholesale contracts to pur11 chase electric energy, for the purpose of meeting a 

12 service obligation, and 

13 ‘‘(B) by reason of ownership of transmission fa14 cilities, or 1 or more contracts or service agreements 

15 for firm transmission service, holds firm trans16 mission rights for delivery of the output of such gen17 eration facilities or such purchased energy to meet 

18 such service obligation, 

19 is entitled to use such firm transmission rights, or, equiva20 lent tradable or financial transmission rights, in order to 

21 deliver such output or purchased energy, or the output of 

22 other generating facilities or purchased energy to the ex23 tent deliverable using such rights, to the extent required 

24 to meet its service obligation. 

25 ‘‘(2) To the extent that all or a portion of the service 

26 obligation covered by such firm transmission rights or 
460

•HR 1640 IH 

1 equivalent tradable or financial transmission rights is 

2 transferred to another load-serving entity, the successor 

3 load-serving entity shall be entitled to use the firm trans4 mission rights or equivalent tradable or financial trans5 mission rights associated with the transferred service obli6 gation. Subsequent transfers to another load-serving enti7 ty, or back to the original load-serving entity, shall be enti8 tled to the same rights. 

9 ‘‘(3) The Commission shall exercise its authority 

10 under this Act in a manner that facilitates the planning 

11 and expansion of transmission facilities to meet the rea12 sonable needs of load-serving entities to satisfy their serv13 ice obligations, and enables load-serving entities to secure 

14 firm transmission rights (or equivalent tradable or finan15 cial rights) on a long term basis for long term power sup16 ply arrangements made, or planned, to meet such needs. 

17 ‘‘(b) ALLOCATION OF TRANSMISSION RIGHTS.—

18 Nothing in subsections (a)(1) and (a)(2) of this section 

19 shall affect any existing or future methodology employed 

20 by an RTO or ISO for allocating or auctioning trans21 mission rights if such RTO or ISO was authorized by the 

22 Commission to allocate or auction financial transmission 

23 rights on its system as of January 1, 2005, and the Com24 mission determines that any future allocation or auction 

25 is just, reasonable and not unduly discriminatory or pref-
461

•HR 1640 IH 

1 erential, provided, however, that if such an RTO or ISO 

2 never allocated financial transmission rights on its system 

3 that pertained to a period before January 1, 2005, with 

4 respect to any application by such RTO or ISO that would 

5 change its methodology the Commission shall exercise its 

6 authority in a manner consistent with the Act and the 

7 policies expressed in subsections (a)(1) and (a)(2) as ap8 plied to firm transmission rights held by a load serving 

9 entity as of January 1, 2005, to the extent the associated 

10 generation ownership or power purchase arrangements re11 main in effect. 

12 ‘‘(c) CERTAIN TRANSMISSION RIGHTS.—The Com13 mission may exercise authority under this Act to make 

14 transmission rights not used to meet an obligation covered 

15 by subsection (a) available to other entities in a manner 

16 determined by the Commission to be just, reasonable, and 

17 not unduly discriminatory or preferential. 

18 ‘‘(d) OBLIGATION TO BUILD.—Nothing in this Act 

19 shall relieve a load-serving entity from any obligation 

20 under State or local law to build transmission or distribu21 tion facilities adequate to meet its service obligations. 

22 ‘‘(e) CONTRACTS.—Nothing in this section shall pro23 vide a basis for abrogating any contract or service agree24 ment for firm transmission service or rights in effect as 

25 of the date of the enactment of this subsection. If an ISO 
462

•HR 1640 IH 

1 in the Western Interconnection had allocated financial 

2 transmission rights prior to the date of enactment of this 

3 section but had not done so with respect to one or more 

4 load-serving entities’ firm transmission rights held under 

5 contracts to which the preceding sentence applies (or held 

6 by reason of ownership of transmission facilities), such 

7 load-serving entities may not be required, without their 

8 consent, to convert such firm transmission rights to 

9 tradable or financial rights, except where the load-serving 

10 entity has voluntarily joined the ISO as a participating 

11 transmission owner (or its successor) in accordance with 

12 the ISO tariff. 

13 ‘‘(f) WATER PUMPING FACILITIES.—The Commis14 sion shall ensure that any entity described in section 

15 201(f) that owns transmission facilities used predomi16 nately to support its own water pumping facilities shall 

17 have, with respect to such facilities, protections for trans18 mission service comparable to those provided to load-serv19 ing entities pursuant to this section. 

20 ‘‘(g) FERC RULEMAKING ON LONG-TERM TRANS21 MISSION RIGHTS IN ORGANIZED MARKETS.—Within one 

22 year after the date of enactment of this section and after 

23 notice and an opportunity for comment, the Commission 

24 shall by rule or order implement subsection (a)(3) in Com-
463

•HR 1640 IH 

1 mission-approved RTOs and ISOs with organized elec2 tricity markets. 

3 ‘‘(h) ERCOT.—This section shall not apply within 

4 the area referred to in section 212(k)(2)(A). 

5 ‘‘(i) JURISDICTION.—This section does not authorize 

6 the Commission to take any action not otherwise within 

7 its jurisdiction. 

8 ‘‘(j) EFFECT OF EXERCISING RIGHTS.—An entity 

9 that lawfully exercises rights granted under subsection (a) 

10 shall not be considered by such action as engaging in 

11 undue discrimination or preference under this Act. 

12 ‘‘(k) TVA AREA.—For purposes of subsection 

13 (a)(1)(B), a load-serving entity that is located within the 

14 service area of the Tennessee Valley Authority and that 

15 has a firm wholesale power supply contract with the Ten16 nessee Valley Authority shall be deemed to hold firm 

17 transmission rights for the transmission of such power. 

18 ‘‘(l) DEFINITIONS.—For purposes of this section: 

19 ‘‘(1) The term ‘distribution utility’ means an 

20 electric utility that has a service obligation to end21 users or to a State utility or electric cooperative 

22 that, directly or indirectly, through 1 or more addi23 tional State utilities or electric cooperatives, provides 

24 electric service to end-users. 
464

•HR 1640 IH 

1 ‘‘(2) The term ‘load-serving entity’ means a dis2 tribution utility or an electric utility that has a serv3 ice obligation. 

4 ‘‘(3) The term ‘service obligation’ means a re5 quirement applicable to, or the exercise of authority 

6 granted to, an electric utility under Federal, State 

7 or local law or under long-term contracts to provide 

8 electric service to end-users or to a distribution util9 ity. 

10 ‘‘(4) The term ‘State utility’ means a State or 

11 any political subdivision of a State, or any agency, 

12 authority, or instrumentality of any 1 or more of the 

13 foregoing, or a corporation which is wholly owned, 

14 directly or indirectly, by any 1 or more of the fore15 going, competent to carry on the business of devel16 oping, transmitting, utilizing or distributing power’’. 

17 SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DIS18 PATCH. 

19 (a) STUDY.—The Secretary of Energy, in coordina20 tion and consultation with the States, shall conduct a 

21 study on—

22 (1) the procedures currently used by electric 

23 utilities to perform economic dispatch; 

24 (2) identifying possible revisions to those proce25 dures to improve the ability of nonutility generation 
465

•HR 1640 IH 

1 resources to offer their output for sale for the pur2 pose of inclusion in economic dispatch; and 

3 (3) the potential benefits to residential, com4 mercial, and industrial electricity consumers nation5 ally and in each state if economic dispatch proce6 dures were revised to improve the ability of non7 utility generation resources to offer their output for 

8 inclusion in economic dispatch. 

9 (b) DEFINITION.—The term ‘‘economic dispatch’’ 

10 when used in this section means the operation of genera11 tion facilities to produce energy at the lowest cost to reli12 ably serve consumers, recognizing any operational limits 

13 of generation and transmission facilities. 

14 (c) REPORT TO CONGRESS AND THE STATES.—Not 

15 later than 90 days after the date of enactment of this Act, 

16 and on a yearly basis following, the Secretary of Energy 

17 shall submit a report to Congress and the States on the 

18 results of the study conducted under subsection (a), in19 cluding recommendations to Congress and the States for 

20 any suggested legislative or regulatory changes. 

21 Subtitle D—Transmission Rate 

22 Reform 

23 SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

24 Part II of the Federal Power Act (16 U.S.C. 824 et 

25 seq.) is amended by adding at the end the following: 
466

•HR 1640 IH 

1 ‘‘SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

2 ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 year 

3 after the enactment of this section, the Commission shall 

4 establish, by rule, incentive-based (including, but not lim5 ited to performance-based) rate treatments for the trans6 mission of electric energy in interstate commerce by public 

7 utilities for the purpose of benefiting consumers by ensur8 ing reliability and reducing the cost of delivered power by 

9 reducing transmission congestion. Such rule shall—

10 ‘‘(1) promote reliable and economically efficient 

11 transmission and generation of electricity by pro12 moting capital investment in the enlargement, im13 provement, maintenance and operation of facilities 

14 for the transmission of electric energy in interstate 

15 commerce; 

16 ‘‘(2) provide a return on equity that attracts 

17 new investment in transmission facilities (including 

18 related transmission technologies); 

19 ‘‘(3) encourage deployment of transmission 

20 technologies and other measures to increase the ca21 pacity and efficiency of existing transmission facili22 ties and improve the operation of such facilities; and 

23 ‘‘(4) allow recovery of all prudently incurred 

24 costs necessary to comply with mandatory reliability 

25 standards issued pursuant to section 215 of this 

26 Act. 
467

•HR 1640 IH 

1 The Commission may, from time to time, revise such rule. 

2 ‘‘(b) ADDITIONAL INCENTIVES FOR RTO PARTICIPA3 TION.—In the rule issued under this section, the Commis4 sion shall, to the extent within its jurisdiction, provide for 

5 incentives to each transmitting utility or electric utility 

6 that joins a Regional Transmission Organization or Inde7 pendent System Operator. Incentives provided by the 

8 Commission pursuant to such rule shall include—

9 ‘‘(1) recovery of all prudently incurred costs to 

10 develop and participate in any proposed or approved 

11 RTO, ISO, or independent transmission company; 

12 ‘‘(2) recovery of all costs previously approved by 

13 a State commission which exercised jurisdiction over 

14 the transmission facilities prior to the utility’s par15 ticipation in the RTO or ISO, including costs nec16 essary to honor preexisting transmission service con17 tracts, in a manner which does not reduce the reve18 nues the utility receives for transmission services for 

19 a reasonable transition period after the utility joins 

20 the RTO or ISO; 

21 ‘‘(3) recovery as an expense in rates of the 

22 costs prudently incurred to conduct transmission 

23 planning and reliability activities, including the costs 

24 of participating in RTO, ISO and other regional 

25 planning activities and design, study and other 
468

•HR 1640 IH 

1 precertification costs involved in seeking permits and 

2 approvals for proposed transmission facilities; 

3 ‘‘(4) a current return in rates for construction 

4 work in progress for transmission facilities and full 

5 recovery of prudently incurred costs for constructing 

6 transmission facilities; 

7 ‘‘(5) formula transmission rates; and 

8 ‘‘(6) a maximum 15 year accelerated deprecia9 tion on new transmission facilities for rate treatment 

10 purposes. 

11 The Commission shall ensure that any costs recoverable 

12 pursuant to this subsection may be recovered by such util13 ity through the transmission rates charged by such utility 

14 or through the transmission rates charged by the RTO 

15 or ISO that provides transmission service to such utility. 

16 ‘‘(c) JUST AND REASONABLE RATES.—All rates ap17 proved under the rules adopted pursuant to this section, 

18 including any revisions to such rules, are subject to the 

19 requirement of sections 205 and 206 that all rates, 

20 charges, terms, and conditions be just and reasonable and 

21 not unduly discriminatory or preferential.’’. 

22 Subtitle E—Amendments to PURPA 

23 SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 

24 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

25 the Public Utility Regulatory Policies Act of 1978 (16 
469

•HR 1640 IH 

1 U.S.C. 2621(d)) is amended by adding at the end the fol2 lowing: 

3 ‘‘(11) NET METERING.—Each electric utility 

4 shall make available upon request net metering serv5 ice to any electric consumer that the electric utility 

6 serves. For purposes of this paragraph, the term 

7 ‘net metering service’ means service to an electric 

8 consumer under which electric energy generated by 

9 that electric consumer from an eligible on-site gener10 ating facility and delivered to the local distribution 

11 facilities may be used to offset electric energy pro12 vided by the electric utility to the electric consumer 

13 during the applicable billing period. 

14 ‘‘(12) FUEL SOURCES.—Each electric utility 

15 shall develop a plan to minimize dependence on 1 

16 fuel source and to ensure that the electric energy it 

17 sells to consumers is generated using a diverse range 

18 of fuels and technologies, including renewable tech19 nologies. 

20 ‘‘(13) FOSSIL FUEL GENERATION EFFI21 CIENCY.—Each electric utility shall develop and im22 plement a 10-year plan to increase the efficiency of 

23 its fossil fuel generation.’’. 

24 (b) COMPLIANCE.—
470

•HR 1640 IH 

1 (1) TIME LIMITATIONS.—Section 112(b) of the 

2 Public Utility Regulatory Policies Act of 1978 (16 

3 U.S.C. 2622(b)) is amended by adding at the end 

4 the following: 

5 ‘‘(3)(A) Not later than 2 years after the enactment 

6 of this paragraph, each State regulatory authority (with 

7 respect to each electric utility for which it has ratemaking 

8 authority) and each nonregulated electric utility shall com9 mence the consideration referred to in section 111, or set 

10 a hearing date for such consideration, with respect to each 

11 standard established by paragraphs (11) through (13) of 

12 section 111(d). 

13 ‘‘(B) Not later than 3 years after the date of the en14 actment of this paragraph, each State regulatory authority 

15 (with respect to each electric utility for which it has rate16 making authority), and each nonregulated electric utility, 

17 shall complete the consideration, and shall make the deter18 mination, referred to in section 111 with respect to each 

19 standard established by paragraphs (11) through (13) of 

20 section 111(d).’’. 

21 (2) FAILURE TO COMPLY.—Section 112(c) of 

22 the Public Utility Regulatory Policies Act of 1978 

23 (16 U.S.C. 2622(c)) is amended by adding at the 

24 end the following: 
471

•HR 1640 IH 

1 ‘‘In the case of each standard established by paragraphs 

2 (11) through (13) of section 111(d), the reference con3 tained in this subsection to the date of enactment of this 

4 Act shall be deemed to be a reference to the date of enact5 ment of such paragraphs (11) through (13).’’. 

6 (3) PRIOR STATE ACTIONS.—

7 (A) IN GENERAL.—Section 112 of the 

8 Public Utility Regulatory Policies Act of 1978 

9 (16 U.S.C. 2622) is amended by adding at the 

10 end the following: 

11 ‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and 

12 (c) of this section shall not apply to the standards estab13 lished by paragraphs (11) through (13) of section 111(d) 

14 in the case of any electric utility in a State if, before the 

15 enactment of this subsection—

16 ‘‘(1) the State has implemented for such utility 

17 the standard concerned (or a comparable standard); 

18 ‘‘(2) the State regulatory authority for such 

19 State or relevant nonregulated electric utility has 

20 conducted a proceeding to consider implementation 

21 of the standard concerned (or a comparable stand22 ard) for such utility; or 

23 ‘‘(3) the State legislature has voted on the im24 plementation of such standard (or a comparable 

25 standard) for such utility.’’. 
472

•HR 1640 IH 

1 (B) CROSS REFERENCE.—Section 124 of 

2 such Act (16 U.S.C. 2634) is amended by add3 ing the following at the end thereof: ‘‘In the 

4 case of each standard established by paragraphs 

5 (11) through (13) of section 111(d), the ref6 erence contained in this subsection to the date 

7 of enactment of this Act shall be deemed to be 

8 a reference to the date of enactment of such 

9 paragraphs (11) through (13).’’. 

10 SEC. 1252. SMART METERING. 

11 (a) IN GENERAL.—Section 111(d) of the Public Utili12 ties Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) 

13 is amended by adding at the end the following: 

14 ‘‘(14) TIME-BASED METERING AND COMMU15 NICATIONS.—

16 ‘‘(A) Not later than 18 months after the 

17 date of enactment of this paragraph, each elec18 tric utility shall offer each of its customer class19 es, and provide individual customers upon cus20 tomer request, a time-based rate schedule under 

21 which the rate charged by the electric utility 

22 varies during different time periods and reflects 

23 the variance, if any, in the utility’s costs of gen24 erating and purchasing electricity at the whole25 sale level. The time-based rate schedule shall 
473

•HR 1640 IH 

1 enable the electric consumer to manage energy 

2 use and cost through advanced metering and 

3 communications technology. 

4 ‘‘(B) The types of time-based rate sched5 ules that may be offered under the schedule re6 ferred to in subparagraph (A) include, among 

7 others—

8 ‘‘(i) time-of-use pricing whereby elec9 tricity prices are set for a specific time pe10 riod on an advance or forward basis, typi11 cally not changing more often than twice a 

12 year, based on the utility’s cost of gener13 ating and/or purchasing such electricity at 

14 the wholesale level for the benefit of the 

15 consumer. Prices paid for energy consumed 

16 during these periods shall be pre-estab17 lished and known to consumers in advance 

18 of such consumption, allowing them to 

19 vary their demand and usage in response 

20 to such prices and manage their energy 

21 costs by shifting usage to a lower cost pe22 riod or reducing their consumption overall; 

23 ‘‘(ii) critical peak pricing whereby 

24 time-of-use prices are in effect except for 

25 certain peak days, when prices may reflect 
474

•HR 1640 IH 

1 the costs of generating and/or purchasing 

2 electricity at the wholesale level and when 

3 consumers may receive additional discounts 

4 for reducing peak period energy consump5 tion; 

6 ‘‘(iii) real-time pricing whereby elec7 tricity prices are set for a specific time pe8 riod on an advanced or forward basis, re9 flecting the utility’s cost of generating and/

10 or purchasing electricity at the wholesale 

11 level, and may change as often as hourly; 

12 and 

13 ‘‘(iv) credits for consumers with large 

14 loads who enter into pre-established peak 

15 load reduction agreements that reduce a 

16 utility’s planned capacity obligations. 

17 ‘‘(C) Each electric utility subject to sub18 paragraph (A) shall provide each customer re19 questing a time-based rate with a time-based 

20 meter capable of enabling the utility and cus21 tomer to offer and receive such rate, respec22 tively. 

23 ‘‘(D) For purposes of implementing this 

24 paragraph, any reference contained in this sec25 tion to the date of enactment of the Public Util-
475

•HR 1640 IH 

1 ity Regulatory Policies Act of 1978 shall be 

2 deemed to be a reference to the date of enact3 ment of this paragraph. 

4 ‘‘(E) In a State that permits third-party 

5 marketers to sell electric energy to retail elec6 tric consumers, such consumers shall be entitled 

7 to receive the same time-based metering and 

8 communications device and service as a retail 

9 electric consumer of the electric utility. 

10 ‘‘(F) Notwithstanding subsections (b) and 

11 (c) of section 112, each State regulatory au12 thority shall, not later than 18 months after the 

13 date of enactment of this paragraph conduct an 

14 investigation in accordance with section 115(i) 

15 and issue a decision whether it is appropriate to 

16 implement the standards set out in subpara17 graphs (A) and (C).’’. 

18 (b) STATE INVESTIGATION OF DEMAND RESPONSE

19 AND TIME-BASED METERING.—Section 115 of the Public 

20 Utilities Regulatory Policies Act of 1978 (16 U.S.C. 2625) 

21 is amended as follows: 

22 (1) By inserting in subsection (b) after the 

23 phrase ‘‘the standard for time-of-day rates estab24 lished by section 111(d)(3)’’ the following: ‘‘and the 
476

•HR 1640 IH 

1 standard for time-based metering and communica2 tions established by section 111(d)(14)’’. 

3 (2) By inserting in subsection (b) after the 

4 phrase ‘‘are likely to exceed the metering’’ the fol5 lowing: ‘‘and communications’’. 

6 (3) By adding the at the end the following: 

7 ‘‘(i) TIME-BASED METERING AND COMMUNICA8 TIONS.—In making a determination with respect to the 

9 standard established by section 111(d)(14), the investiga10 tion requirement of section 111(d)(14)(F) shall be as fol11 lows: Each State regulatory authority shall conduct an in12 vestigation and issue a decision whether or not it is appro13 priate for electric utilities to provide and install time-based 

14 meters and communications devices for each of their cus15 tomers which enable such customers to participate in time16 based pricing rate schedules and other demand response 

17 programs.’’. 

18 (c) FEDERAL ASSISTANCE ON DEMAND RE19 SPONSE.—Section 132(a) of the Public Utility Regulatory 

20 Policies Act of 1978 (16 U.S.C. 2642(a)) is amended by 

21 striking ‘‘and’’ at the end of paragraph (3), striking the 

22 period at the end of paragraph (4) and inserting ‘‘; and’’, 

23 and by adding the following at the end thereof: 

24 ‘‘(5) technologies, techniques, and rate-making 

25 methods related to advanced metering and commu-
477

•HR 1640 IH 

1 nications and the use of these technologies, tech2 niques and methods in demand response programs.’’. 

3 (d) FEDERAL GUIDANCE.—Section 132 of the Public 

4 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) 

5 is amended by adding the following at the end thereof: 

6 ‘‘(d) DEMAND RESPONSE.—The Secretary shall be 

7 responsible for—

8 ‘‘(1) educating consumers on the availability, 

9 advantages, and benefits of advanced metering and 

10 communications technologies, including the funding 

11 of demonstration or pilot projects; 

12 ‘‘(2) working with States, utilities, other energy 

13 providers and advanced metering and communica14 tions experts to identify and address barriers to the 

15 adoption of demand response programs; and 

16 ‘‘(3) not later than 180 days after the date of 

17 enactment of the Energy Policy Act of 2005, pro18 viding Congress with a report that identifies and 

19 quantifies the national benefits of demand response 

20 and makes a recommendation on achieving specific 

21 levels of such benefits by January 1, 2007.’’. 

22 (e) DEMAND RESPONSE AND REGIONAL COORDINA23 TION.—

24 (1) IN GENERAL.—It is the policy of the United 

25 States to encourage States to coordinate, on a re-
478

•HR 1640 IH 

1 gional basis, State energy policies to provide reliable 

2 and affordable demand response services to the pub3 lic. 

4 (2) TECHNICAL ASSISTANCE.—The Secretary of 

5 Energy shall provide technical assistance to States 

6 and regional organizations formed by 2 or more 

7 States to assist them in—

8 (A) identifying the areas with the greatest 

9 demand response potential; 

10 (B) identifying and resolving problems in 

11 transmission and distribution networks, includ12 ing through the use of demand response; 

13 (C) developing plans and programs to use 

14 demand response to respond to peak demand or 

15 emergency needs; and 

16 (D) identifying specific measures con17 sumers can take to participate in these demand 

18 response programs. 

19 (3) REPORT.—Not later than 1 year after the 

20 date of enactment of the Energy Policy Act of 2005, 

21 the Commission shall prepare and publish an annual 

22 report, by appropriate region, that assesses demand 

23 response resources, including those available from all 

24 consumer classes, and which identifies and reviews—
479

•HR 1640 IH 

1 (A) saturation and penetration rate of ad2 vanced meters and communications tech3 nologies, devices and systems; 

4 (B) existing demand response programs 

5 and time-based rate programs; 

6 (C) the annual resource contribution of de7 mand resources; 

8 (D) the potential for demand response as 

9 a quantifiable, reliable resource for regional 

10 planning purposes; 

11 (E) steps taken to ensure that, in regional 

12 transmission planning and operations, demand 

13 resources are provided equitable treatment as a 

14 quantifiable, reliable resource relative to the re15 source obligations of any load-serving entity, 

16 transmission provider, or transmitting party; 

17 and 

18 (F) regulatory barriers to improved cus19 tomer participation in demand response, peak 

20 reduction and critical period pricing programs. 

21 (f) FEDERAL ENCOURAGEMENT OF DEMAND RE22 SPONSE DEVICES.—It is the policy of the United States 

23 that time-based pricing and other forms of demand re24 sponse, whereby electricity customers are provided with 

25 electricity price signals and the ability to benefit by re-
480

•HR 1640 IH 

1 sponding to them, shall be encouraged, the deployment of 

2 such technology and devices that enable electricity cus3 tomers to participate in such pricing and demand response 

4 systems shall be facilitated, and unnecessary barriers to 

5 demand response participation in energy, capacity and an6 cillary service markets shall be eliminated. It is further 

7 the policy of the United States that the benefits of such 

8 demand response that accrue to those not deploying such 

9 technology and devices, but who are part of the same re10 gional electricity entity, shall be recognized. 

11 (g) TIME LIMITATIONS.—Section 112(b) of the Pub12 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

13 2622(b)) is amended by adding at the end the following: 

14 ‘‘(4)(A) Not later than 1 year after the enact15 ment of this paragraph, each State regulatory au16 thority (with respect to each electric utility for which 

17 it has ratemaking authority) and each nonregulated 

18 electric utility shall commence the consideration re19 ferred to in section 111, or set a hearing date for 

20 such consideration, with respect to the standard es21 tablished by paragraph (14) of section 111(d). 

22 ‘‘(B) Not later than 2 years after the date of 

23 the enactment of this paragraph, each State regu24 latory authority (with respect to each electric utility 

25 for which it has ratemaking authority), and each 
481

•HR 1640 IH 

1 nonregulated electric utility, shall complete the con2 sideration, and shall make the determination, re3 ferred to in section 111 with respect to the standard 

4 established by paragraph (14) of section 111(d).’’. 

5 (h) FAILURE TO COMPLY.—Section 112(c) of the 

6 Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

7 2622(c)) is amended by adding at the end the following: 

8 ‘‘In the case of the standard established by paragraph (14) 

9 of section 111(d), the reference contained in this sub10 section to the date of enactment of this Act shall be 

11 deemed to be a reference to the date of enactment of such 

12 paragraph (14).’’. 

13 (i) PRIOR STATE ACTIONS REGARDING SMART ME14 TERING STANDARDS.—

15 (1) IN GENERAL.—Section 112 of the Public 

16 Utility Regulatory Policies Act of 1978 (16 U.S.C. 

17 2622) is amended by adding at the end the fol18 lowing: 

19 ‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and 

20 (c) of this section shall not apply to the standard estab21 lished by paragraph (14) of section 111(d) in the case of 

22 any electric utility in a State if, before the enactment of 

23 this subsection—

24 ‘‘(1) the State has implemented for such utility 

25 the standard concerned (or a comparable standard); 
482

•HR 1640 IH 

1 ‘‘(2) the State regulatory authority for such 

2 State or relevant nonregulated electric utility has 

3 conducted a proceeding to consider implementation 

4 of the standard concerned (or a comparable stand5 ard) for such utility within the previous 3 years; or 

6 ‘‘(3) the State legislature has voted on the im7 plementation of such standard (or a comparable 

8 standard) for such utility within the previous 3 

9 years.’’. 

10 (2) CROSS REFERENCE.—Section 124 of such 

11 Act (16 U.S.C. 2634) is amended by adding the fol12 lowing at the end thereof: ‘‘In the case of the stand13 ard established by paragraph (14) of section 111(d), 

14 the reference contained in this subsection to the date 

15 of enactment of this Act shall be deemed to be a ref16 erence to the date of enactment of such paragraph 

17 (14).’’. 

18 SEC. 1253. COGENERATION AND SMALL POWER PRODUC19 TION PURCHASE AND SALE REQUIREMENTS. 

20 (a) TERMINATION OF MANDATORY PURCHASE AND

21 SALE REQUIREMENTS.—Section 210 of the Public Utility 

22 Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 

23 amended by adding at the end the following: 

24 ‘‘(m) TERMINATION OF MANDATORY PURCHASE AND

25 SALE REQUIREMENTS.—
483

•HR 1640 IH 

1 ‘‘(1) OBLIGATION TO PURCHASE.—After the 

2 date of enactment of this subsection, no electric util3 ity shall be required to enter into a new contract or 

4 obligation to purchase electric energy from a quali5 fying cogeneration facility or a qualifying small 

6 power production facility under this section if the 

7 Commission finds that the qualifying cogeneration 

8 facility or qualifying small power production facility 

9 has nondiscriminatory access to—

10 ‘‘(A)(i) independently administered, auc11 tion-based day ahead and real time wholesale 

12 markets for the sale of electric energy; and 

13 ‘‘(ii) wholesale markets for long-term sales 

14 of capacity and electric energy; or 

15 ‘‘(B)(i) transmission and interconnection 

16 services that are provided by a Commission-ap17 proved regional transmission entity and admin18 istered pursuant to an open access transmission 

19 tariff that affords nondiscriminatory treatment 

20 to all customers; and 

21 ‘‘(ii) competitive wholesale markets that 

22 provide a meaningful opportunity to sell capac23 ity, including long-term and short-term sales, 

24 and electric energy, including long-term, short25 term and real-time sales, to buyers other than 
484

•HR 1640 IH 

1 the utility to which the qualifying facility is 

2 interconnected. In determining whether a mean3 ingful opportunity to sell exists, the Commis4 sion shall consider, among other factors, evi5 dence of transactions within the relevant mar6 ket; or 

7 ‘‘(C) wholesale markets for the sale of ca8 pacity and electric energy that are, at a min9 imum, of comparable competitive quality as 

10 markets described in subparagraphs (A) and 

11 (B). 

12 ‘‘(2) REVISED PURCHASE AND SALE OBLIGA13 TION FOR NEW FACILITIES.—(A) After the date of 

14 enactment of this subsection, no electric utility shall 

15 be required pursuant to this section to enter into a 

16 new contract or obligation to purchase from or sell 

17 electric energy to a facility that is not an existing 

18 qualifying cogeneration facility unless the facility 

19 meets the criteria for qualifying cogeneration facili20 ties established by the Commission pursuant to the 

21 rulemaking required by subsection (n). 

22 ‘‘(B) For the purposes of this paragraph, the 

23 term ‘existing qualifying cogeneration facility’ means 

24 a facility that—
485

•HR 1640 IH 

1 ‘‘(i) was a qualifying cogeneration facility 

2 on the date of enactment of subsection (m); or 

3 ‘‘(ii) had filed with the Commission a no4 tice of self-certification, self recertification or 

5 an application for Commission certification 

6 under 18 C.F.R. 292.207 prior to the date on 

7 which the Commission issues the final rule re8 quired by subsection (n). 

9 ‘‘(3) COMMISSION REVIEW.—Any electric utility 

10 may file an application with the Commission for re11 lief from the mandatory purchase obligation pursu12 ant to this subsection on a service territory-wide 

13 basis. Such application shall set forth the factual 

14 basis upon which relief is requested and describe 

15 why the conditions set forth in subparagraphs (A), 

16 (B) or (C) of paragraph (1) of this subsection have 

17 been met. After notice, including sufficient notice to 

18 potentially affected qualifying cogeneration facilities 

19 and qualifying small power production facilities, and 

20 an opportunity for comment, the Commission shall 

21 make a final determination within 90 days of such 

22 application regarding whether the conditions set 

23 forth in subparagraphs (A), (B) or (C) of paragraph 

24 (1) have been met. 
486

•HR 1640 IH 

1 ‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR2 CHASE.—At any time after the Commission makes a 

3 finding under paragraph (3) relieving an electric 

4 utility of its obligation to purchase electric energy, 

5 a qualifying cogeneration facility, a qualifying small 

6 power production facility, a State agency, or any 

7 other affected person may apply to the Commission 

8 for an order reinstating the electric utility’s obliga9 tion to purchase electric energy under this section. 

10 Such application shall set forth the factual basis 

11 upon which the application is based and describe 

12 why the conditions set forth in subparagraphs (A), 

13 (B) or (C) of paragraph (1) of this subsection are 

14 no longer met. After notice, including sufficient no15 tice to potentially affected utilities, and opportunity 

16 for comment, the Commission shall issue an order 

17 within 90 days of such application reinstating the 

18 electric utility’s obligation to purchase electric en19 ergy under this section if the Commission finds that 

20 the conditions set forth in subparagraphs (A), (B) or 

21 (C) of paragraph (1) which relieved the obligation to 

22 purchase, are no longer met. 

23 ‘‘(5) OBLIGATION TO SELL.—After the date of 

24 enactment of this subsection, no electric utility shall 

25 be required to enter into a new contract or obliga-
487

•HR 1640 IH 

1 tion to sell electric energy to a qualifying cogenera2 tion facility or a qualifying small power production 

3 facility under this section if the Commission finds 

4 that—

5 ‘‘(A) competing retail electric suppliers are 

6 willing and able to sell and deliver electric en7 ergy to the qualifying cogeneration facility or 

8 qualifying small power production facility; and 

9 ‘‘(B) the electric utility is not required by 

10 State law to sell electric energy in its service 

11 territory. 

12 ‘‘(6) NO EFFECT ON EXISTING RIGHTS AND

13 REMEDIES.—Nothing in this subsection affects the 

14 rights or remedies of any party under any contract 

15 or obligation, in effect or pending approval before 

16 the appropriate State regulatory authority or non17 regulated electric utility on the date of enactment of 

18 this subsection, to purchase electric energy or capac19 ity from or to sell electric energy or capacity to a 

20 qualifying cogeneration facility or qualifying small 

21 power production facility under this Act (including 

22 the right to recover costs of purchasing electric en23 ergy or capacity). 

24 ‘‘(7) RECOVERY OF COSTS.—(A) The Commis25 sion shall issue and enforce such regulations as are 
488

•HR 1640 IH 

1 necessary to ensure that an electric utility that pur2 chases electric energy or capacity from a qualifying 

3 cogeneration facility or qualifying small power pro4 duction facility in accordance with any legally en5 forceable obligation entered into or imposed under 

6 this section recovers all prudently incurred costs as7 sociated with the purchase. 

8 ‘‘(B) A regulation under subparagraph (A) shall 

9 be enforceable in accordance with the provisions of 

10 law applicable to enforcement of regulations under 

11 the Federal Power Act (16 U.S.C. 791a et seq.). 

12 ‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILI13 TIES.—(1)(A) Not later than 180 days after the date of 

14 enactment of this section, the Commission shall issue a 

15 rule revising the criteria in 18 C.F.R. 292.205 for new 

16 qualifying cogeneration facilities seeking to sell electric en17 ergy pursuant to section 210 of this Act to ensure—

18 ‘‘(i) that the thermal energy output of a new 

19 qualifying cogeneration facility is used in a produc20 tive and beneficial manner; 

21 ‘‘(ii) the electrical, thermal, and chemical out22 put of the cogeneration facility is used fundamen23 tally for industrial, commercial, or institutional pur24 poses and is not intended fundamentally for sale to 

25 an electric utility, taking into account technological, 
489

•HR 1640 IH 

1 efficiency, economic, and variable thermal energy re2 quirements, as well as State laws applicable to sales 

3 of electric energy from a qualifying facility to its 

4 host facility; and 

5 ‘‘(iii) continuing progress in the development of 

6 efficient electric energy generating technology. 

7 ‘‘(B) The rule issued pursuant to paragraph (1)(A) 

8 of this subsecvtion shall be applicable only to facilities that 

9 seek to sell electric energy pursuant to section 210 of this 

10 Act. For all other purposes, except as specifically provided 

11 in subsection (m)(2)(A), qualifying facility status shall be 

12 determined in accordance with the rules and regulations 

13 of this Act. 

14 ‘‘(2) Notwithstanding rule revisions under paragraph 

15 (1), the Commission’s criteria for qualifying cogeneration 

16 facilities in effect prior to the date on which the Commis17 sion issues the final rule required by paragraph (1) shall 

18 continue to apply to any cogeneration facility that—

19 ‘‘(A) was a qualifying cogeneration facility on 

20 the date of enactment of subsection (m), or 

21 ‘‘(B) had filed with the Commission a notice of 

22 self-certification, self-recertification or an application 

23 for Commission certification under 18 C.F.R. 

24 292.207 prior to the date on which the Commission 

25 issues the final rule required by paragraph (1).’’. 
490

•HR 1640 IH 

1 (b) ELIMINATION OF OWNERSHIP LIMITATIONS.—

2 (1) QUALIFYING SMALL POWER PRODUCTION

3 FACILITY.—Section 3(17)(C) of the Federal Power 

4 Act (16 U.S.C. 796(17)(C)) is amended to read as 

5 follows: 

6 ‘‘(C) ‘qualifying small power production fa7 cility’ means a small power production facility 

8 that the Commission determines, by rule, meets 

9 such requirements (including requirements re10 specting fuel use, fuel efficiency, and reliability) 

11 as the Commission may, by rule, prescribe;’’. 

12 (2) QUALIFYING COGENERATION FACILITY.—

13 Section 3(18)(B) of the Federal Power Act (16 

14 U.S.C. 796(18)(B)) is amended to read as follows: 

15 ‘‘(B) ‘qualifying cogeneration facility’ 

16 means a cogeneration facility that the Commis17 sion determines, by rule, meets such require18 ments (including requirements respecting min19 imum size, fuel use, and fuel efficiency) as the 

20 Commission may, by rule, prescribe;’’. 

21 SEC. 1254. INTERCONNECTION. 

22 (a) ADOPTION OF STANDARDS.—Section 111(d) of 

23 the Public Utility Regulatory Policies Act of 1978 (16 

24 U.S.C. 2621(d)) is amended by adding at the end the fol25 lowing: 
491

•HR 1640 IH 

1 ‘‘(16) INTERCONNECTION.—Each electric utility 

2 shall make available, upon request, interconnection 

3 service to any electric consumer that the electric 

4 utility serves. For purposes of this paragraph, the 

5 term ‘interconnection service’ means service to an 

6 electric consumer under which an on-site generating 

7 facility on the consumer’s premises shall be con8 nected to the local distribution facilities. Inter9 connection services shall be offered based upon the 

10 standards developed by the Institute of Electrical 

11 and Electronics Engineers: IEEE Standard 1547 for 

12 Interconnecting Distributed Resources with Electric 

13 Power Systems, as they may be amended from time 

14 to time. In addition, agreements and procedures 

15 shall be established whereby the services are offered 

16 shall promote current best practices of interconnec17 tion for distributed generation, including but not 

18 limited to practices stipulated in model codes adopt19 ed by associations of state regulatory agencies. All 

20 such agreements and procedures shall be just and 

21 reasonable, and not unduly discriminatory or pref22 erential.’’. 

23 (b) COMPLIANCE.—

24 (1) TIME LIMITATIONS.—Section 112 (b) of the 

25 Public Utility Regulatory Policies Act of 1978 (16 
492

•HR 1640 IH 

1 U.S.C. 2622(b)) is amended by adding at the end 

2 the following: 

3 ‘‘(3)(A) Not later than one year after the enact4 ment of this paragraph, each State regulatory au5 thority (with respect to each electric utility for which 

6 it has ratemaking authority) and each nonregulated 

7 utility shall commence the consideration referred to 

8 in section 111, or set a hearing date for consider9 ation, with respect to the standard established by 

10 paragraph (16) of section 111(d). 

11 ‘‘(B) Not later than two years after the date of 

12 the enactment of the this paragraph, each State reg13 ulatory authority (with respect to each electric utility 

14 for which it has ratemaking authority), and each 

15 nonregulated electric utility, shall complete the con16 sideration, and shall make the determination, re17 ferred to in section 111 with respect to each stand18 ard established by paragraph (16) of section 

19 111(d).’’. 

20 (2) FAILURE TO COMPLY.—Section 112 (d) f 

21 the Public Utility Regulatory Policies Act of 1978 

22 (16 U.S.C. 2622 (c)) is amended by adding at the 

23 end the following: ‘‘In the case of the standard es24 tablished by paragraph (16), the reference contained 

25 in this subsection to the date of enactment of this 
493

•HR 1640 IH 

1 Act shall be deemed to be a reference to the date of 

2 enactment of paragraph (16).’’. 

3 (3) PRIOR STATE ACTIONS.—

4 (A) IN GENERAL.—Section 112 of the 

5 Public Utility Regulatory Policies Act of 1978 

6 (16 U.S.C. 2622) is amended by adding at the 

7 end the following: 

8 ‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and 

9 (c) of this section shall not apply to the standards estab10 lished by paragraphs (16) of section 111(d) in the case 

11 of any electric utility in a State if, before the enactment 

12 of this subsection—

13 ‘‘(1) the State has implemented for such utility 

14 the standard concerned (or a comparable standard); 

15 ‘‘(2) the State regulatory authority for such 

16 State or relevant nonregulated electric utility has 

17 conducted a proceeding to consider implementation 

18 of the standard concerned (or a comparable stand19 ard) for such utility; or 

20 ‘‘(3) the State legislature has voted on the im21 plementation of such standard (or a comparable 

22 standard) for such utility.’’. 

23 (B) CROSS REFERENCE.—Section 124 of 

24 such Act (16 U.S.C. 2634) is amended by add25 ing the following at the end thereof: ‘‘In the 
494

•HR 1640 IH 

1 case of each standard established by paragraph 

2 (16) of section 111(d), the reference contained 

3 in this subsection to the date of enactment of 

4 the Act shall be deemed to be a reference to the 

5 date of enactment of paragraph (16).’’. 

6 Subtitle F—Repeal of PUHCA 

7 SEC. 1261. SHORT TITLE. 

8 This subtitle may be cited as the ‘‘Public Utility 

9 Holding Company Act of 2005’’. 

10 SEC. 1262. DEFINITIONS. 

11 For purposes of this subtitle: 

12 (1) AFFILIATE.—The term ‘‘affiliate’’ of a com13 pany means any company, 5 percent or more of the 

14 outstanding voting securities of which are owned, 

15 controlled, or held with power to vote, directly or in16 directly, by such company. 

17 (2) ASSOCIATE COMPANY.—The term ‘‘associate 

18 company’’ of a company means any company in the 

19 same holding company system with such company. 

20 (3) COMMISSION.—The term ‘‘Commission’’ 

21 means the Federal Energy Regulatory Commission. 

22 (4) COMPANY.—The term ‘‘company’’ means a 

23 corporation, partnership, association, joint stock 

24 company, business trust, or any organized group of 

25 persons, whether incorporated or not, or a receiver, 
495

•HR 1640 IH 

1 trustee, or other liquidating agent of any of the fore2 going. 

3 (5) ELECTRIC UTILITY COMPANY.—The term 

4 ‘‘electric utility company’’ means any company that 

5 owns or operates facilities used for the generation, 

6 transmission, or distribution of electric energy for 

7 sale. 

8 (6) EXEMPT WHOLESALE GENERATOR AND

9 FOREIGN UTILITY COMPANY.—The terms ‘‘exempt 

10 wholesale generator’’ and ‘‘foreign utility company’’ 

11 have the same meanings as in sections 32 and 33, 

12 respectively, of the Public Utility Holding Company 

13 Act of 1935 (15 U.S.C. 79z–5a, 79z–5b), as those 

14 sections existed on the day before the effective date 

15 of this subtitle. 

16 (7) GAS UTILITY COMPANY.—The term ‘‘gas 

17 utility company’’ means any company that owns or 

18 operates facilities used for distribution at retail 

19 (other than the distribution only in enclosed portable 

20 containers or distribution to tenants or employees of 

21 the company operating such facilities for their own 

22 use and not for resale) of natural or manufactured 

23 gas for heat, light, or power. 

24 (8) HOLDING COMPANY.—The term ‘‘holding 

25 company’’ means—
496

•HR 1640 IH 

1 (A) any company that directly or indirectly 

2 owns, controls, or holds, with power to vote, 10 

3 percent or more of the outstanding voting secu4 rities of a public-utility company or of a holding 

5 company of any public-utility company; and 

6 (B) any person, determined by the Com7 mission, after notice and opportunity for hear8 ing, to exercise directly or indirectly (either 

9 alone or pursuant to an arrangement or under10 standing with 1 or more persons) such a con11 trolling influence over the management or poli12 cies of any public-utility company or holding 

13 company as to make it necessary or appropriate 

14 for the rate protection of utility customers with 

15 respect to rates that such person be subject to 

16 the obligations, duties, and liabilities imposed 

17 by this subtitle upon holding companies. 

18 (9) HOLDING COMPANY SYSTEM.—The term 

19 ‘‘holding company system’’ means a holding com20 pany, together with its subsidiary companies. 

21 (10) JURISDICTIONAL RATES.—The term ‘‘ju22 risdictional rates’’ means rates accepted or estab23 lished by the Commission for the transmission of 

24 electric energy in interstate commerce, the sale of 

25 electric energy at wholesale in interstate commerce, 
497

•HR 1640 IH 

1 the transportation of natural gas in interstate com2 merce, and the sale in interstate commerce of nat3 ural gas for resale for ultimate public consumption 

4 for domestic, commercial, industrial, or any other 

5 use. 

6 (11) NATURAL GAS COMPANY.—The term ‘‘nat7 ural gas company’’ means a person engaged in the 

8 transportation of natural gas in interstate commerce 

9 or the sale of such gas in interstate commerce for 

10 resale. 

11 (12) PERSON.—The term ‘‘person’’ means an 

12 individual or company. 

13 (13) PUBLIC UTILITY.—The term ‘‘public util14 ity’’ means any person who owns or operates facili15 ties used for transmission of electric energy in inter16 state commerce or sales of electric energy at whole17 sale in interstate commerce. 

18 (14) PUBLIC-UTILITY COMPANY.—The term 

19 ‘‘public-utility company’’ means an electric utility 

20 company or a gas utility company. 

21 (15) STATE COMMISSION.—The term ‘‘State 

22 commission’’ means any commission, board, agency, 

23 or officer, by whatever name designated, of a State, 

24 municipality, or other political subdivision of a State 
498

•HR 1640 IH 

1 that, under the laws of such State, has jurisdiction 

2 to regulate public utility companies. 

3 (16) SUBSIDIARY COMPANY.—The term ‘‘sub4 sidiary company’’ of a holding company means—

5 (A) any company, 10 percent or more of 

6 the outstanding voting securities of which are 

7 directly or indirectly owned, controlled, or held 

8 with power to vote, by such holding company; 

9 and 

10 (B) any person, the management or poli11 cies of which the Commission, after notice and 

12 opportunity for hearing, determines to be sub13 ject to a controlling influence, directly or indi14 rectly, by such holding company (either alone or 

15 pursuant to an arrangement or understanding 

16 with 1 or more other persons) so as to make it 

17 necessary for the rate protection of utility cus18 tomers with respect to rates that such person 

19 be subject to the obligations, duties, and liabil20 ities imposed by this subtitle upon subsidiary 

21 companies of holding companies. 

22 (17) VOTING SECURITY.—The term ‘‘voting se23 curity’’ means any security presently entitling the 

24 owner or holder thereof to vote in the direction or 

25 management of the affairs of a company. 
499

•HR 1640 IH 

1 SEC. 1263. REPEAL OF THE PUBLIC UTILITY HOLDING COM2 PANY ACT OF 1935. 

3 The Public Utility Holding Company Act of 1935 (15 

4 U.S.C. 79 et seq.) is repealed. 

5 SEC. 1264. FEDERAL ACCESS TO BOOKS AND RECORDS. 

6 (a) IN GENERAL.—Each holding company and each 

7 associate company thereof shall maintain, and shall make 

8 available to the Commission, such books, accounts, memo9 randa, and other records as the Commission determines 

10 are relevant to costs incurred by a public utility or natural 

11 gas company that is an associate company of such holding 

12 company and necessary or appropriate for the protection 

13 of utility customers with respect to jurisdictional rates. 

14 (b) AFFILIATE COMPANIES.—Each affiliate of a hold15 ing company or of any subsidiary company of a holding 

16 company shall maintain, and shall make available to the 

17 Commission, such books, accounts, memoranda, and other 

18 records with respect to any transaction with another affil19 iate, as the Commission determines are relevant to costs 

20 incurred by a public utility or natural gas company that 

21 is an associate company of such holding company and nec22 essary or appropriate for the protection of utility cus23 tomers with respect to jurisdictional rates. 

24 (c) HOLDING COMPANY SYSTEMS.—The Commission 

25 may examine the books, accounts, memoranda, and other 

26 records of any company in a holding company system, or 
500

•HR 1640 IH 

1 any affiliate thereof, as the Commission determines are 

2 relevant to costs incurred by a public utility or natural 

3 gas company within such holding company system and 

4 necessary or appropriate for the protection of utility cus5 tomers with respect to jurisdictional rates. 

6 (d) CONFIDENTIALITY.—No member, officer, or em7 ployee of the Commission shall divulge any fact or infor8 mation that may come to his or her knowledge during the 

9 course of examination of books, accounts, memoranda, or 

10 other records as provided in this section, except as may 

11 be directed by the Commission or by a court of competent 

12 jurisdiction. 

13 SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS. 

14 (a) IN GENERAL.—Upon the written request of a 

15 State commission having jurisdiction to regulate a public16 utility company in a holding company system, the holding 

17 company or any associate company or affiliate thereof, 

18 other than such public-utility company, wherever located, 

19 shall produce for inspection books, accounts, memoranda, 

20 and other records that—

21 (1) have been identified in reasonable detail in 

22 a proceeding before the State commission; 

23 (2) the State commission determines are rel24 evant to costs incurred by such public-utility com25 pany; and 
501

•HR 1640 IH 

1 (3) are necessary for the effective discharge of 

2 the responsibilities of the State commission with re3 spect to such proceeding. 

4 (b) LIMITATION.—Subsection (a) does not apply to 

5 any person that is a holding company solely by reason of 

6 ownership of 1 or more qualifying facilities under the Pub7 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

8 2601 et seq.). 

9 (c) CONFIDENTIALITY OF INFORMATION.—The pro10 duction of books, accounts, memoranda, and other records 

11 under subsection (a) shall be subject to such terms and 

12 conditions as may be necessary and appropriate to safe13 guard against unwarranted disclosure to the public of any 

14 trade secrets or sensitive commercial information. 

15 (d) EFFECT ON STATE LAW.—Nothing in this sec16 tion shall preempt applicable State law concerning the pro17 vision of books, accounts, memoranda, and other records, 

18 or in any way limit the rights of any State to obtain books, 

19 accounts, memoranda, and other records under any other 

20 Federal law, contract, or otherwise. 

21 (e) COURT JURISDICTION.—Any United States dis22 trict court located in the State in which the State commis23 sion referred to in subsection (a) is located shall have ju24 risdiction to enforce compliance with this section. 
502

•HR 1640 IH 

1 SEC. 1266. EXEMPTION AUTHORITY. 

2 (a) RULEMAKING.—Not later than 90 days after the 

3 effective date of this subtitle, the Commission shall issue 

4 a final rule to exempt from the requirements of section 

5 1264 (relating to Federal access to books and records) any 

6 person that is a holding company, solely with respect to 

7 1 or more—

8 (1) qualifying facilities under the Public Utility 

9 Regulatory Policies Act of 1978 (16 U.S.C. 2601 et 

10 seq.); 

11 (2) exempt wholesale generators; or 

12 (3) foreign utility companies. 

13 (b) OTHER AUTHORITY.—The Commission shall ex14 empt a person or transaction from the requirements of 

15 section 1264 (relating to Federal access to books and 

16 records) if, upon application or upon the motion of the 

17 Commission—

18 (1) the Commission finds that the books, ac19 counts, memoranda, and other records of any person 

20 are not relevant to the jurisdictional rates of a pub21 lic utility or natural gas company; or 

22 (2) the Commission finds that any class of 

23 transactions is not relevant to the jurisdictional 

24 rates of a public utility or natural gas company. 
503

•HR 1640 IH 

1 SEC. 1267. AFFILIATE TRANSACTIONS. 

2 (a) COMMISSION AUTHORITY UNAFFECTED.—Noth3 ing in this subtitle shall limit the authority of the Commis4 sion under the Federal Power Act (16 U.S.C. 791a et seq.) 

5 to require that jurisdictional rates are just and reasonable, 

6 including the ability to deny or approve the pass through 

7 of costs, the prevention of cross-subsidization, and the 

8 issuance of such rules and regulations as are necessary 

9 or appropriate for the protection of utility consumers. 

10 (b) RECOVERY OF COSTS.—Nothing in this subtitle 

11 shall preclude the Commission or a State commission from 

12 exercising its jurisdiction under otherwise applicable law 

13 to determine whether a public-utility company, public util14 ity, or natural gas company may recover in rates any costs 

15 of an activity performed by an associate company, or any 

16 costs of goods or services acquired by such public-utility 

17 company from an associate company. 

18 SEC. 1268. APPLICABILITY. 

19 Except as otherwise specifically provided in this sub20 title, no provision of this subtitle shall apply to, or be 

21 deemed to include—

22 (1) the United States; 

23 (2) a State or any political subdivision of a 

24 State; 

25 (3) any foreign governmental authority not op26 erating in the United States; 
504

•HR 1640 IH 

1 (4) any agency, authority, or instrumentality of 

2 any entity referred to in paragraph (1), (2), or (3); 

3 or 

4 (5) any officer, agent, or employee of any entity 

5 referred to in paragraph (1), (2), (3), or (4) acting 

6 as such in the course of his or her official duty. 

7 SEC. 1269. EFFECT ON OTHER REGULATIONS. 

8 Nothing in this subtitle precludes the Commission or 

9 a State commission from exercising its jurisdiction under 

10 otherwise applicable law to protect utility customers. 

11 SEC. 1270. ENFORCEMENT. 

12 The Commission shall have the same powers as set 

13 forth in sections 306 through 317 of the Federal Power 

14 Act (16 U.S.C. 825e–825p) to enforce the provisions of 

15 this subtitle. 

16 SEC. 1271. SAVINGS PROVISIONS. 

17 (a) IN GENERAL.—Nothing in this subtitle, or other18 wise in the Public Utility Holding Company Act of 1935, 

19 or rules, regulations, or orders thereunder, prohibits a per20 son from engaging in or continuing to engage in activities 

21 or transactions in which it is legally engaged or authorized 

22 to engage on the date of enactment of this Act, if that 

23 person continues to comply with the terms (other than an 

24 expiration date or termination date) of any such author25 ization, whether by rule or by order. 
505

•HR 1640 IH 

1 (b) EFFECT ON OTHER COMMISSION AUTHORITY.—

2 Nothing in this subtitle limits the authority of the Com3 mission under the Federal Power Act (16 U.S.C. 791a et 

4 seq.) or the Natural Gas Act (15 U.S.C. 717 et seq.). 

5 SEC. 1272. IMPLEMENTATION. 

6 Not later than 12 months after the date of enactment 

7 of this subtitle, the Commission shall—

8 (1) issue such regulations as may be necessary 

9 or appropriate to implement this subtitle (other than 

10 section 1265, relating to State access to books and 

11 records); and 

12 (2) submit to Congress detailed recommenda13 tions on technical and conforming amendments to 

14 Federal law necessary to carry out this subtitle and 

15 the amendments made by this subtitle. 

16 SEC. 1273. TRANSFER OF RESOURCES. 

17 All books and records that relate primarily to the 

18 functions transferred to the Commission under this sub19 title shall be transferred from the Securities and Exchange 

20 Commission to the Commission. 

21 SEC. 1274. EFFECTIVE DATE. 

22 (a) IN GENERAL.—Except for section 1272 (relating 

23 to implementation), this subtitle shall take effect 12 

24 months after the date of enactment of this subtitle. 
506

•HR 1640 IH 

1 (b) COMPLIANCE WITH CERTAIN RULES.—If the 

2 Commission approves and makes effective any final rule3 making modifying the standards of conduct governing en4 tities that own, operate, or control facilities for trans5 mission of electricity in interstate commerce or transpor6 tation of natural gas in interstate commerce prior to the 

7 effective date of this subtitle, any action taken by a public8 utility company or utility holding company to comply with 

9 the requirements of such rulemaking shall not subject 

10 such public-utility company or utility holding company to 

11 any regulatory requirement applicable to a holding com12 pany under the Public Utility Holding Company Act of 

13 1935 (15 U.S.C. 79 et seq.). 

14 SEC. 1275. SERVICE ALLOCATION. 

15 (a) FERC REVIEW.—In the case of non-power goods 

16 or administrative or management services provided by an 

17 associate company organized specifically for the purpose 

18 of providing such goods or services to any public utility 

19 in the same holding company system, at the election of 

20 the system or a State commission having jurisdiction over 

21 the public utility, the Commission, after the effective date 

22 of this subtitle, shall review and authorize the allocation 

23 of the costs for such goods or services to the extent rel24 evant to that associate company in order to assure that 
507

•HR 1640 IH 

1 each allocation is appropriate for the protection of inves2 tors and consumers of such public utility. 

3 (b) COST ALLOCATION.—Nothing in this section shall 

4 preclude the Commission or a State commission from exer5 cising its jurisdiction under other applicable law with re6 spect to the review or authorization of any costs allocated 

7 to a public utility in a holding company system located 

8 in the affected State as a result of the acquisition of non9 power goods or administrative and management services 

10 by such public utility from an associate company orga11 nized specifically for that purpose. 

12 (c) RULES.—Not later than 6 months after the date 

13 of enactment of this Act, the Commission shall issue rules 

14 (which rules shall be effective no earlier than the effective 

15 date of this subtitle) to exempt from the requirements of 

16 this section any company in a holding company system 

17 whose public utility operations are confined substantially 

18 to a single State and any other class of transactions that 

19 the Commission finds is not relevant to the jurisdictional 

20 rates of a public utility. 

21 (d) PUBLIC UTILITY.—As used in this section, the 

22 term ‘‘public utility’’ has the meaning given that term in 

23 section 201(e) of the Federal Power Act. 
508

•HR 1640 IH 

1 SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such funds 

3 as may be necessary to carry out this subtitle. 

4 SEC. 1277. CONFORMING AMENDMENTS TO THE FEDERAL 

5 POWER ACT. 

6 (a) CONFLICT OF JURISDICTION.—Section 318 of the 

7 Federal Power Act (16 U.S.C. 825q) is repealed. 

8 (b) DEFINITIONS.—(1) Section 201(g)(5) of the Fed9 eral Power Act (16 U.S.C. 824(g)(5)) is amended by strik10 ing ‘‘1935’’ and inserting ‘‘2005’’. 

11 (2) Section 214 of the Federal Power Act (16 U.S.C. 

12 824m) is amended by striking ‘‘1935’’ and inserting 

13 ‘‘2005’’. 

14 Subtitle G—Market Transparency, 

15 Enforcement, and Consumer 

16 Protection 

17 SEC. 1281. MARKET TRANSPARENCY RULES. 

18 Part II of the Federal Power Act (16 U.S.C. 824 et 

19 seq.) is amended by adding at the end the following: 

20 ‘‘SEC. 220. MARKET TRANSPARENCY RULES. 

21 ‘‘(a) IN GENERAL.—Not later than 180 days after 

22 the date of enactment of this section, the Commission 

23 shall issue rules establishing an electronic information sys24 tem to provide the Commission and the public with access 

25 to such information as is necessary or appropriate to fa26 cilitate price transparency and participation in markets 
509

•HR 1640 IH 

1 subject to the Commission’s jurisdiction under this Act. 

2 Such systems shall provide information about the avail3 ability and market price of wholesale electric energy and 

4 transmission services to the Commission, State commis5 sions, buyers and sellers of wholesale electric energy, users 

6 of transmission services, and the public on a timely basis. 

7 The Commission shall have authority to obtain such infor8 mation from any electric utility or transmitting utility, in9 cluding any entity described in section 201(f). 

10 ‘‘(b) EXEMPTIONS.—The Commission shall exempt 

11 from disclosure information it determines would, if dis12 closed, be detrimental to the operation of an effective mar13 ket or jeopardize system security. This section shall not 

14 apply to transactions for the purchase or sale of wholesale 

15 electric energy or transmission services within the area de16 scribed in section 212(k)(2)(A). In determining the infor17 mation to be made available under this section and time 

18 to make such information available, the Commission shall 

19 seek to ensure that consumers and competitive markets 

20 are protected from the adverse effects of potential collu21 sion or other anti-competitive behaviors that can be facili22 tated by untimely public disclosure of transaction-specific 

23 information. 

24 ‘‘(c) COMMODITY FUTURES TRADING COMMIS25 SION.—This section shall not affect the exclusive jurisdic-
510

•HR 1640 IH 

1 tion of the Commodity Futures Trading Commission with 

2 respect to accounts, agreements, contracts, or transactions 

3 in commodities under the Commodity Exchange Act (7 

4 U.S.C. 1 et seq.). 

5 ‘‘(d) SAVINGS PROVISION.—In exercising its author6 ity under this section, the Commission shall not—

7 ‘‘(1) compete with, or displace from the market 

8 place, any price publisher; or 

9 ‘‘(2) regulate price publishers or impose any re10 quirements on the publication of information.’’. 

11 SEC. 1282. MARKET MANIPULATION. 

12 Part II of the Federal Power Act (16 U.S.C. 824 et 

13 seq.) is amended by adding at the end the following: 

14 ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 

15 ‘‘No person or other entity (including an entity de16 scribed in section 201(f)) shall willfully and knowingly re17 port any information relating to the price of electricity 

18 sold at wholesale or availability of transmission capacity, 

19 which information the person or any other entity knew to 

20 be false at the time of the reporting, to a Federal agency 

21 with intent to fraudulently affect the data being compiled 

22 by such Federal agency. 

23 ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 

24 ‘‘(a) PROHIBITION.—No person or other entity (in25 cluding an entity described in section 201(f)) shall willfully 
511

•HR 1640 IH 

1 and knowingly enter into any contract or other arrange2 ment to execute a ‘round trip trade’ for the purchase or 

3 sale of electric energy at wholesale. 

4 ‘‘(b) DEFINITION.—For the purposes of this section, 

5 the term ‘round trip trade’ means a transaction, or com6 bination of transactions, in which a person or any other 

7 entity—

8 ‘‘(1) enters into a contract or other arrange9 ment to purchase from, or sell to, any other person 

10 or other entity electric energy at wholesale; 

11 ‘‘(2) simultaneously with entering into the con12 tract or arrangement described in paragraph (1), ar13 ranges a financially offsetting trade with such other 

14 person or entity for the same such electric energy, 

15 at the same location, price, quantity and terms so 

16 that, collectively, the purchase and sale transactions 

17 in themselves result in no financial gain or loss; and 

18 ‘‘(3) enters into the contract or arrangement 

19 with a specific intent to fraudulently affect reported 

20 revenues, trading volumes, or prices.’’. 

21 SEC. 1283. ENFORCEMENT. 

22 (a) COMPLAINTS.—Section 306 of the Federal Power 

23 Act (16 U.S.C. 825e) is amended as follows: 

24 (1) By inserting ‘‘electric utility,’’ after ‘‘Any 

25 person,’’. 
512

•HR 1640 IH 

1 (2) By inserting ‘‘, transmitting utility,’’ after 

2 ‘‘licensee’’ each place it appears. 

3 (b) REVIEW OF COMMISSION ORDERS.—Section 

4 313(a) of the Federal Power Act (16 U.S.C. 8251) is 

5 amended by inserting ‘‘electric utility,’’ after ‘‘person,’’ in 

6 the first 2 places it appears and by striking ‘‘any person 

7 unless such person’’ and inserting ‘‘any entity unless such 

8 entity’’. 

9 (c) INVESTIGATIONS.—Section 307(a) of the Federal 

10 Power Act (16 U.S.C. 825f(a)) is amended as follows: 

11 (1) By inserting ‘‘, electric utility, transmitting 

12 utility, or other entity’’ after ‘‘person’’ each time it 

13 appears. 

14 (2) By striking the period at the end of the 

15 first sentence and inserting the following: ‘‘or in ob16 taining information about the sale of electric energy 

17 at wholesale in interstate commerce and the trans18 mission of electric energy in interstate commerce.’’. 

19 (d) CRIMINAL PENALTIES.—Section 316 of the Fed20 eral Power Act (16 U.S.C. 825o) is amended—

21 (1) in subsection (a), by striking ‘‘$5,000’’ and 

22 inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 

23 and inserting ‘‘5 years’’; 

24 (2) in subsection (b), by striking ‘‘$500’’ and 

25 inserting ‘‘$25,000’’; and 
513

•HR 1640 IH 

1 (3) by striking subsection (c). 

2 (e) CIVIL PENALTIES.—Section 316A of the Federal 

3 Power Act (16 U.S.C. 825o–1) is amended as follows: 

4 (1) In subsections (a) and (b), by striking ‘‘sec5 tion 211, 212, 213, or 214’’ each place it appears 

6 and inserting ‘‘Part II’’. 

7 (2) In subsection (b), by striking ‘‘$10,000’’ 

8 and inserting ‘‘$1,000,000’’. 

9 SEC. 1284. REFUND EFFECTIVE DATE. 

10 Section 206(b) of the Federal Power Act (16 U.S.C. 

11 824e(b)) is amended as follows: 

12 (1) By striking ‘‘the date 60 days after the fil13 ing of such complaint nor later than 5 months after 

14 the expiration of such 60-day period’’ in the second 

15 sentence and inserting ‘‘the date of the filing of such 

16 complaint nor later than 5 months after the filing of 

17 such complaint’’. 

18 (2) By striking ‘‘60 days after’’ in the third 

19 sentence and inserting ‘‘of’’. 

20 (3) By striking ‘‘expiration of such 60-day pe21 riod’’ in the third sentence and inserting ‘‘publica22 tion date’’. 

23 (4) By striking the fifth sentence and inserting 

24 the following: ‘‘If no final decision is rendered by the 

25 conclusion of the 180-day period commencing upon 
514

•HR 1640 IH 

1 initiation of a proceeding pursuant to this section, 

2 the Commission shall state the reasons why it has 

3 failed to do so and shall state its best estimate as 

4 to when it reasonably expects to make such deci5 sion.’’. 

6 SEC. 1285. REFUND AUTHORITY. 

7 Section 206 of the Federal Power Act (16 U.S.C. 

8 824e) is amended by adding the following new subsection 

9 at the end thereof: 

10 ‘‘(e)(1) Except as provided in paragraph (2), if an 

11 entity described in section 201(f) voluntarily makes a 

12 short-term sale of electric energy and the sale violates 

13 Commission rules in effect at the time of the sale, such 

14 entity shall be subject to the Commission’s refund author15 ity under this section with respect to such violation. 

16 ‘‘(2) This section shall not apply to—

17 ‘‘(A) any entity that sells less than 8,000,000 

18 megawatt hours of electricity per year; or 

19 ‘‘(B) any electric cooperative. 

20 ‘‘(3) For purposes of this subsection, the term ‘short21 term sale’ means an agreement for the sale of electric en22 ergy at wholesale in interstate commerce that is for a pe23 riod of 31 days or less (excluding monthly contracts sub24 ject to automatic renewal). 
515

•HR 1640 IH 

1 ‘‘(4) The Commission shall have refund authority 

2 under subsection (e)(1) with respect to a voluntary short3 term sale of electric energy by the Bonneville Power Ad4 ministration (in this section ‘Bonneville’) only if the sale 

5 is at an unjust and unreasonable rate and, in that event, 

6 may order a refund only for short-term sales made by 

7 Bonneville at rates that are higher than the highest just 

8 and reasonable rate charged by any other entity for a 

9 short-term sale of electric energy in the same geographic 

10 market for the same, or most nearly comparable, period 

11 as the sale by Bonneville. 

12 ‘‘(5) With respect to any Federal power marketing 

13 agency or the Tennessee Valley Authority, the Commission 

14 shall not assert or exercise any regulatory authority or 

15 powers under subsection (e)(1) other than the ordering of 

16 refunds to achieve a just and reasonable rate.’’. 

17 SEC. 1286. SANCTITY OF CONTRACT. 

18 (a) IN GENERAL.—The Federal Energy Regulatory 

19 Commission (in this section, ‘‘the Commission’’) shall have 

20 no authority to abrogate or modify any provision of an 

21 executed contract or executed contract amendment de22 scribed in subsection (b) that has been entered into or 

23 taken effect, except upon a finding that failure to take 

24 such action would be contrary to the public interest. 
516

•HR 1640 IH 

1 (b) LIMITATION.—Except as provided in subsection 

2 (c), this section shall apply only to a contract or contract 

3 amendment—

4 (1) executed on or after the date of enactment 

5 of this Act; and 

6 (2) entered into—

7 (A) for the purchase or sale of electric en8 ergy under section 205 of the Federal Power 

9 Act (16 U.S.C. 824d) where the seller has been 

10 authorized by the Commission to charge mar11 ket-based rates; or 

12 (B) under section 4 of the Natural Gas 

13 Act (15 U.S.C. 717c) where the natural gas 

14 company has been authorized by the Commis15 sion to charge market-based rates for the serv16 ice described in the contract. 

17 (c) EXCLUSION.—This section shall not apply to an 

18 executed contract or executed contract amendment that 

19 expressly provides for a standard of review other than the 

20 public interest standard. 

21 (d) SAVINGS PROVISION.—With respect to contracts 

22 to which this section does not apply, nothing in this sec23 tion alters existing law regarding the applicable standard 

24 of review for a contract subject to the jurisdiction of the 

25 Commission. 
517

•HR 1640 IH 

1 SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRAC2 TICES. 

3 (a) PRIVACY.—The Federal Trade Commission may 

4 issue rules protecting the privacy of electric consumers 

5 from the disclosure of consumer information obtained in 

6 connection with the sale or delivery of electric energy to 

7 electric consumers. 

8 (b) SLAMMING.—The Federal Trade Commission 

9 may issue rules prohibiting the change of selection of an 

10 electric utility except with the informed consent of the 

11 electric consumer or if approved by the appropriate State 

12 regulatory authority. 

13 (c) CRAMMING.—The Federal Trade Commission 

14 may issue rules prohibiting the sale of goods and services 

15 to an electric consumer unless expressly authorized by law 

16 or the electric consumer. 

17 (d) RULEMAKING.—The Federal Trade Commission 

18 shall proceed in accordance with section 553 of title 5, 

19 United States Code, when prescribing a rule under this 

20 section. 

21 (e) STATE AUTHORITY.—If the Federal Trade Com22 mission determines that a State’s regulations provide 

23 equivalent or greater protection than the provisions of this 

24 section, such State regulations shall apply in that State 

25 in lieu of the regulations issued by the Commission under 

26 this section. 
518

•HR 1640 IH 

1 (f) DEFINITIONS.—For purposes of this section: 

2 (1) STATE REGULATORY AUTHORITY.—The 

3 term ‘‘State regulatory authority’’ has the meaning 

4 given that term in section 3(21) of the Federal 

5 Power Act (16 U.S.C. 796(21)). 

6 (2) ELECTRIC CONSUMER AND ELECTRIC UTIL7 ITY.—The terms ‘‘electric consumer’’ and ‘‘electric 

8 utility’’ have the meanings given those terms in sec9 tion 3 of the Public Utility Regulatory Policies Act 

10 of 1978 (16 U.S.C. 2602). 

11 Subtitle H—Merger Reform 

12 SEC. 1291. MERGER REVIEW REFORM AND ACCOUNT13 ABILITY. 

14 (a) MERGER REVIEW REFORM.—Within 180 days 

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

16 Energy, in consultation with the Federal Energy Regu17 latory Commission and the Attorney General of the United 

18 States, shall prepare, and transmit to Congress each of 

19 the following: 

20 (1) A study of the extent to which the authori21 ties vested in the Federal Energy Regulatory Com22 mission under section 203 of the Federal Power Act 

23 are duplicative of authorities vested in—

24 (A) other agencies of Federal and State 

25 Government; and 
519

•HR 1640 IH 

1 (B) the Federal Energy Regulatory Com2 mission, including under sections 205 and 206 

3 of the Federal Power Act. 

4 (2) Recommendations on reforms to the Fed5 eral Power Act that would eliminate any unneces6 sary duplication in the exercise of regulatory author7 ity or unnecessary delays in the approval (or dis8 approval) of applications for the sale, lease, or other 

9 disposition of public utility facilities. 

10 (b) MERGER REVIEW ACCOUNTABILITY.—Not later 

11 than 1 year after the date of enactment of this Act and 

12 annually thereafter, with respect to all orders issued with13 in the preceding year that impose a condition on a sale, 

14 lease, or other disposition of public utility facilities under 

15 section 203(b) of the Federal Power Act, the Federal En16 ergy Regulatory Commission shall transmit a report to 

17 Congress explaining each of the following: 

18 (1) The condition imposed. 

19 (2) Whether the Commission could have im20 posed such condition by exercising its authority 

21 under any provision of the Federal Power Act other 

22 than under section 203(b). 

23 (3) If the Commission could not have imposed 

24 such condition other than under section 203(b), why 
520

•HR 1640 IH 

1 the Commission determined that such condition was 

2 consistent with the public interest. 

3 SEC. 1292. ELECTRIC UTILITY MERGERS. 

4 (a) AMENDMENT.—Section 203(a) of the Federal 

5 Power Act (16 U.S.C. 824b(a)) is amended to read as fol6 lows: 

7 ‘‘(a)(1) No public utility shall, without first having 

8 secured an order of the Commission authorizing it to do 

9 so—

10 ‘‘(A) sell, lease, or otherwise dispose of the 

11 whole of its facilities subject to the jurisdiction of 

12 the Commission, or any part thereof of a value in 

13 excess of $10,000,000; 

14 ‘‘(B) merge or consolidate, directly or indi15 rectly, such facilities or any part thereof with those 

16 of any other person, by any means whatsoever; or 

17 ‘‘(C) purchase, acquire, or take any security 

18 with a value in excess of $10,000,000 of any other 

19 public utility. 

20 ‘‘(2) No holding company in a holding company sys21 tem that includes a public utility shall purchase, acquire, 

22 or take any security with a value in excess of $10,000,000 

23 of, or, by any means whatsoever, directly or indirectly, 

24 merge or consolidate with, a public utility or a holding 

25 company in a holding company system that includes a 
521

•HR 1640 IH 

1 public utility with a value in excess of $10,000,000 with2 out first having secured an order of the Commission au3 thorizing it to do so. 

4 ‘‘(3) Upon receipt of an application for such approval 

5 the Commission shall give reasonable notice in writing to 

6 the Governor and State commission of each of the States 

7 in which the physical property affected, or any part there8 of, is situated, and to such other persons as it may deem 

9 advisable. 

10 ‘‘(4) After notice and opportunity for hearing, the 

11 Commission shall approve the proposed disposition, con12 solidation, acquisition, or change in control, if it finds that 

13 the proposed transaction will be consistent with the public 

14 interest. In evaluating whether a transaction will be con15 sistent with the public interest, the Commission shall con16 sider whether the proposed transaction—

17 ‘‘(A) will adequately protect consumer interests; 

18 ‘‘(B) will be consistent with competitive whole19 sale markets; 

20 ‘‘(C) will impair the financial integrity of any 

21 public utility that is a party to the transaction or an 

22 associate company of any party to the transaction; 

23 and 

24 ‘‘(D) satisfies such other criteria as the Com25 mission considers consistent with the public interest. 
522

•HR 1640 IH 

1 ‘‘(5) The Commission shall, by rule, adopt procedures 

2 for the expeditious consideration of applications for the 

3 approval of dispositions, consolidations, or acquisitions 

4 under this section. Such rules shall identify classes of 

5 transactions, or specify criteria for transactions, that nor6 mally meet the standards established in paragraph (4). 

7 The Commission shall provide expedited review for such 

8 transactions. The Commission shall grant or deny any 

9 other application for approval of a transaction not later 

10 than 180 days after the application is filed. If the Com11 mission does not act within 180 days, such application 

12 shall be deemed granted unless the Commission finds, 

13 based on good cause, that further consideration is required 

14 to determine whether the proposed transaction meets the 

15 standards of paragraph (4) and issues an order tolling the 

16 time for acting on the application for not more than 180 

17 days, at the end of which additional period the Commis18 sion shall grant or deny the application. 

19 ‘‘(6) For purposes of this subsection, the terms ‘asso20 ciate company’, ‘holding company’, and ‘holding company 

21 system’ have the meaning given those terms in the Public 

22 Utility Holding Company Act of 2005.’’. 

23 (b) EFFECTIVE DATE.—The amendments made by 

24 this section shall take effect 12 months after the date of 

25 enactment of this section. 
523

•HR 1640 IH 

1 Subtitle I—Definitions 

2 SEC. 1295. DEFINITIONS. 

3 (a) ELECTRIC UTILITY.—Section 3(22) of the Fed4 eral Power Act (16 U.S.C. 796(22)) is amended to read 

5 as follows: 

6 ‘‘(22) ELECTRIC UTILITY.—The term ‘electric 

7 utility’ means any person or Federal or State agency 

8 (including any entity described in section 201(f)) 

9 that sells electric energy; such term includes the 

10 Tennessee Valley Authority and each Federal power 

11 marketing administration.’’. 

12 (b) TRANSMITTING UTILITY.—Section 3(23) of the 

13 Federal Power Act (16 U.S.C. 796(23)) is amended to 

14 read as follows: 

15 ‘‘(23) TRANSMITTING UTILITY.—The term 

16 ‘transmitting utility’ means an entity, including any 

17 entity described in section 201(f), that owns, oper18 ates, or controls facilities used for the transmission 

19 of electric energy—

20 ‘‘(A) in interstate commerce; or 

21 ‘‘(B) for the sale of electric energy at 

22 wholesale.’’. 

23 (c) ADDITIONAL DEFINITIONS.—Section 3 of the 

24 Federal Power Act (16 U.S.C. 796) is amended by adding 

25 at the end the following: 
524

•HR 1640 IH 

1 ‘‘(26) ELECTRIC COOPERATIVE.—The term 

2 ‘electric cooperative’ means a cooperatively owned 

3 electric utility. 

4 ‘‘(27) RTO.—The term ‘Regional Transmission 

5 Organization’ or ‘RTO’ means an entity of sufficient 

6 regional scope approved by the Commission to exer7 cise operational or functional control of facilities 

8 used for the transmission of electric energy in inter9 state commerce and to ensure nondiscriminatory ac10 cess to such facilities. 

11 ‘‘(28) ISO.—The term ‘Independent System 

12 Operator’ or ‘ISO’ means an entity approved by the 

13 Commission to exercise operational or functional 

14 control of facilities used for the transmission of elec15 tric energy in interstate commerce and to ensure 

16 nondiscriminatory access to such facilities.’’. 

17 (d) COMMISSION.—For the purposes of this title, the 

18 term ‘‘Commission’’ means the Federal Energy Regu19 latory Commission. 

20 (e) APPLICABILITY.—Section 201(f) of the Federal 

21 Power Act (16 U.S.C. 824(f)) is amended by adding after 

22 ‘‘political subdivision of a state,’’ the following: ‘‘an elec23 tric cooperative that has financing under the Rural Elec24 trification Act of 1936 (7 U.S.C. 901 et seq.) or that sells 
525

•HR 1640 IH 

1 less than 4,000,000 megawatt hours of electricity per 

2 year,’’. 

3 Subtitle J—Technical and 

4 Conforming Amendments 

5 SEC. 1297. CONFORMING AMENDMENTS. 

6 The Federal Power Act is amended as follows: 

7 (1) Section 201(b)(2) of such Act (16 U.S.C. 

8 824(b)(2)) is amended as follows: 

9 (A) In the first sentence by striking ‘‘210, 

10 211, and 212’’ and inserting ‘‘203(a)(2), 

11 206(e), 210, 211, 211A, 212, 215, 216, 217, 

12 218, 219, 220, 221, and 222’’. 

13 (B) In the second sentence by striking 

14 ‘‘210 or 211’’ and inserting ‘‘203(a)(2), 206(e), 

15 210, 211, 211A, 212, 215, 216, 217, 218, 219, 

16 220, 221, and 222’’. 

17 (C) Section 201(b)(2) of such Act is 

18 amended by striking ‘‘The’’ in the first place it 

19 appears and inserting ‘‘Notwithstanding section 

20 201(f), the’’ and in the second sentence after 

21 ‘‘any order’’ by inserting ‘‘or rule’’. 

22 (2) Section 201(e) of such Act is amended by 

23 striking ‘‘210, 211, or 212’’ and inserting ‘‘206(e), 

24 206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 

25 219, 220, 221, and 222’’. 
526

•HR 1640 IH 

1 (3) Section 206 of such Act (16 U.S.C. 824e) 

2 is amended as follows: 

3 (A) In subsection (b), in the seventh sen4 tence, by striking ‘‘the public utility to make’’. 

5 (B) In the first sentence of subsection (a), 

6 by striking ‘‘hearing had’’ and inserting ‘‘hear7 ing held’’. 

8 (4) Section 211(c) of such Act (16 U.S.C. 

9 824j(c)) is amended by—

10 (A) striking ‘‘(2)’’; 

11 (B) striking ‘‘(A)’’ and inserting ‘‘(1)’’; 

12 (C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; 

13 and 

14 (D) striking ‘‘termination of modification’’ 

15 and inserting ‘‘termination or modification’’. 

16 (5) Section 211(d)(1) of such Act (16 U.S.C. 

17 824j(d)(1)) is amended by striking ‘‘electric utility’’ 

18 the second time it appears and inserting ‘‘transmit19 ting utility’’. 

20 (6) Section 315 (c) of such Act (16 U.S.C. 

21 825n(c)) is amended by striking ‘‘subsection’’ and 

22 inserting ‘‘section’’. 
527

•HR 1640 IH 

1 Subtitle K—Economic Dispatch 

2 SEC. 1298. ECONOMIC DISPATCH. 

3 Part II of the Federal Power Act (16 U.S.C. 824 et 

4 seq.) is amended by adding at the end the following: 

5 ‘‘SEC. 223. JOINT BOARD ON ECONOMIC DISPATCH. 

6 ‘‘(a) IN GENERAL.—The Commission shall convene 

7 a joint board pursuant to section 209 of this Act to study 

8 the issue of security constrained economic dispatch for a 

9 market region. 

10 ‘‘(b) MEMBERSHIP.—The Commission shall request 

11 each State to nominate a representative for such joint 

12 board. 

13 ‘‘(c) POWERS.—The board’s sole authority shall be 

14 to consider issues relevant to what constitutes ‘security 

15 constrained economic dispatch’ and how such a mode of 

16 operating an electric energy system affects or enhances the 

17 reliability and affordability of service to customers. 

18 ‘‘(d) REPORT TO THE CONGRESS.—The board shall 

19 issue a report on these matters within one year of enact20 ment of this section, including any consensus rec21 ommendations for statutory or regulatory reform.’’. 
528

•HR 1640 IH 

1 TITLE XIV—MISCELLANEOUS 

2 Subtitle C—Other Provisions 

3 SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY 

4 ORDER. 

5 Department of Energy Order No. 202–03–2, issued 

6 by the Secretary of Energy on August 28, 2003, shall re7 main in effect unless rescinded by Federal statute. 

8 SEC. 1442. REVIEW OF AGENCY DETERMINATIONS. 

9 Section 7 of the Natural Gas Act (15 U.S.C. 717f) 

10 is amended by adding at the end the following: 

11 ‘‘(i)(1) The United States Court of Appeals for the 

12 District of Columbia Circuit shall have original and exclu13 sive jurisdiction over any civil action—

14 ‘‘(A) for review of any order or action of any 

15 Federal or State administrative agency or officer to 

16 issue, condition, or deny any permit, license, concur17 rence, or approval issued under authority of any 

18 Federal law, other than the Coastal Zone Manage19 ment Act of 1972 (16 U.S.C. 1451 et seq.), required 

20 for the construction of a natural gas pipeline for 

21 which a certificate of public convenience and neces22 sity is issued by the Commission under this section; 

23 ‘‘(B) alleging unreasonable delay by any Fed24 eral or State administrative agency or officer in en-
529

•HR 1640 IH 

1 tering an order or taking other action described in 

2 subparagraph (A); or 

3 ‘‘(C) challenging any decision made or action 

4 taken under this subsection. 

5 ‘‘(2)(A) If the Court finds that the order, action, or 

6 failure to act is not consistent with the public convenience 

7 and necessity (as determined by the Commission under 

8 this section), or would prevent the construction and oper9 ation of natural gas facilities authorized by the certificate 

10 of public convenience and necessity, the permit, license, 

11 concurrence, or approval that is the subject of the order, 

12 action, or failure to act shall be deemed to have been 

13 issued subject to any conditions set forth in the reviewed 

14 order or action that the Court finds to be consistent with 

15 the public convenience and necessity. 

16 ‘‘(B) For purposes of paragraph (1)(B), the failure 

17 of an agency or officer to issue any such permit, license, 

18 concurrence, or approval within the later of 1 year after 

19 the date of filing of an application for the permit, license, 

20 concurrence, or approval or 60 days after the date of 

21 issuance of the certificate of public convenience and neces22 sity under this section, shall be considered to be unreason23 able delay unless the Court, for good cause shown, deter24 mines otherwise. 
530

•HR 1640 IH 

1 ‘‘(C) The Court shall set any action brought under 

2 paragraph (1) for expedited consideration.’’. 

3 SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE 

4 NONATTAINMENT AREAS. 

5 Section 181 of the Clean Air Act (42 U.S.C.7511) 

6 is amended by adding the following new subsection at the 

7 end thereof: 

8 ‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN

9 DOWNWIND AREAS.—

10 ‘‘(1) DEFINITIONS.—(A) The term ‘upwind 

11 area’ means an area that—

12 ‘‘(i) significantly contributes to nonattain13 ment in another area, hereinafter referred to as 

14 a ‘downwind area’; and 

15 ‘‘(ii) is either—

16 ‘‘(I) a nonattainment area with a later 

17 attainment date than the downwind area, 

18 or 

19 ‘‘(II) an area in another State that 

20 the Administrator has found to be signifi21 cantly contributing to nonattainment in 

22 the downwind area in violation of section 

23 110(a)(2)(D) and for which the Adminis24 trator has established requirements 

25 through notice and comment rulemaking to 
531

•HR 1640 IH 

1 eliminate the emissions causing such sig2 nificant contribution. 

3 ‘‘(B) The term ‘current classification’ means 

4 the classification of a downwind area under this sec5 tion at the time of the determination under para6 graph (2). 

7 ‘‘(2) EXTENSION.—If the Administrator—

8 ‘‘(A) determines that any area is a down9 wind area with respect to a particular national 

10 ambient air quality standard for ozone; and 

11 ‘‘(B) approves a plan revision for such 

12 area as provided in paragraph (3) prior to a re13 classification under subsection (b)(2)(A), 

14 the Administrator, in lieu of such reclassification, 

15 shall extend the attainment date for such downwind 

16 area for such standard in accordance with paragraph 

17 (5). 

18 ‘‘(3) REQUIRED APPROVAL.—In order to extend 

19 the attainment date for a downwind area under this 

20 subsection, the Administrator must approve a revi21 sion of the applicable implementation plan for the 

22 downwind area for such standard that—

23 ‘‘(A) complies with all requirements of this 

24 Act applicable under the current classification 

25 of the downwind area, including any require-
532

•HR 1640 IH 

1 ments applicable to the area under section 

2 172(c) for such standard; and 

3 ‘‘(B) includes any additional measures 

4 needed to demonstrate attainment by the ex5 tended attainment date provided under this 

6 subsection. 

7 ‘‘(4) PRIOR RECLASSIFICATION DETERMINA8 TION.—If, no more than 18 months prior to the date 

9 of enactment of this subsection, the Administrator 

10 made a reclassification determination under sub11 section (b)(2)(A) for any downwind area, and the 

12 Administrator approves the plan revision referred to 

13 in paragraph (3) for such area within 12 months 

14 after the date of enactment of this subsection, the 

15 reclassification shall be withdrawn and the attain16 ment date extended in accordance with paragraph 

17 (5) upon such approval. The Administrator shall 

18 also withdraw a reclassification determination under 

19 subsection (b)(2)(A) made after the date of enact20 ment of this subsection and extend the attainment 

21 date in accordance with paragraph (5) if the Admin22 istrator approves the plan revision referred to in 

23 paragraph (3) within 12 months of the date the re24 classification determination under subsection 

25 (b)(2)(A) is issued. In such instances the ‘current 
533

•HR 1640 IH 

1 classification’ used for evaluating the revision of the 

2 applicable implementation plan under paragraph (3) 

3 shall be the classification of the downwind area 

4 under this section immediately prior to such reclassi5 fication. 

6 ‘‘(5) EXTENDED DATE.—The attainment date 

7 extended under this subsection shall provide for at8 tainment of such national ambient air quality stand9 ard for ozone in the downwind area as expeditiously 

10 as practicable but no later than the date on which 

11 the last reductions in pollution transport necessary 

12 for attainment in the downwind area are required to 

13 be achieved by the upwind area or areas.’’. 

14 SEC. 1444. ENERGY PRODUCTION INCENTIVES. 

15 (a) IN GENERAL.—A State may provide to any enti16 ty—

17 (1) a credit against any tax or fee owed to the 

18 State under a State law, or 

19 (2) any other tax incentive, 

20 determined by the State to be appropriate, in the amount 

21 calculated under and in accordance with a formula deter22 mined by the State, for production described in subsection 

23 (b) in the State by the entity that receives such credit or 

24 such incentive. 
534

•HR 1640 IH 

1 (b) ELIGIBLE ENTITIES.—Subsection (a) shall apply 

2 with respect to the production in the State of—

3 (1) electricity from coal mined in the State and 

4 used in a facility, if such production meets all appli5 cable Federal and State laws and if such facility 

6 uses scrubbers or other forms of clean coal tech7 nology, 

8 (2) electricity from a renewable source such as 

9 wind, solar, or biomass, or 

10 (3) ethanol. 

11 (c) EFFECT ON INTERSTATE COMMERCE.—Any ac12 tion taken by a State in accordance with this section with 

13 respect to a tax or fee payable, or incentive applicable, 

14 for any period beginning after the date of the enactment 

15 of this Act shall—

16 (1) be considered to be a reasonable regulation 

17 of commerce; and 

18 (2) not be considered to impose an undue bur19 den on interstate commerce or to otherwise impair, 

20 restrain, or discriminate, against interstate com21 merce. 

22 SEC. 1446. REGULATION OF CERTAIN OIL USED IN TRANS23 FORMERS. 

24 Notwithstanding any other provision of law, or rule 

25 promulgated by the Environmental Protection Agency, 
535

•HR 1640 IH 

1 vegetable oil made from soybeans and used in electric 

2 transformers as thermal insulation shall not be regulated 

3 as an oil as defined under section 2(a)(1)(A) of the Edible 

4 Oil Regulatory Reform Act (33 U.S.C. 2720(a)(1)(A)). 

5 SEC. 1447. RISK ASSESSMENTS. 

6 Subtitle B of title XXX of the Energy Policy Act of 

7 1992 is amended by adding at the end the following new 

8 section: 

9 ‘‘SEC. 3022. RISK ASSESSMENT. 

10 ‘‘Federal agencies conducting assessments of risks to 

11 human health and the environment from energy tech12 nology, production, transport, transmission, distribution, 

13 storage, use, or conservation activities shall use sound and 

14 objective scientific practices in assessing such risks, shall 

15 consider the best available science (including peer reviewed 

16 studies), and shall include a description of the weight of 

17 the scientific evidence concerning such risks.’’. 

18 SEC. 1448. OXYGEN-FUEL. 

19 (a) PROGRAM.—The Secretary of Energy shall estab20 lish a program on oxygen-fuel systems. If feasible, the pro21 gram shall include renovation of at least one existing large 

22 unit and one existing small unit, and construction of one 

23 new large unit and one new small unit. Cost sharing shall 

24 not be required. 
536

•HR 1640 IH 

1 (b) AUTHORIZATION OF APPROPRIATIONS.—There 

2 are authorized to be appropriated to the Secretary for car3 rying out this section—

4 (1) $100,000,000 for fiscal year 2006; 

5 (2) $100,000,000 for fiscal year 2007; and 

6 (3) $100,000,000 for fiscal year 2008. 

7 (c) DEFINITIONS.—For purposes of this section—

8 (1) the term ‘‘large unit’’ means a unit with a 

9 generating capacity of 100 megawatts or more; 

10 (2) the term ‘‘oxygen-fuel systems’’ means sys11 tems that utilize fuel efficiency benefits of oil, gas, 

12 coal, and biomass combustion using substantially 

13 pure oxygen, with high flame temperatures and the 

14 exclusion of air from the boiler, in industrial or elec15 tric utility steam generating units; and 

16 (3) the term ‘‘small unit’’ means a unit with a 

17 generating capacity in the 10–50 megawatt range. 

18 SEC. 1449. PETROCHEMICAL AND OIL REFINERY FACILITY 

19 HEALTH ASSESSMENT. 

20 (a) ESTABLISHMENT.—The Secretary of Energy 

21 shall conduct a study of direct and significant health im22 pacts to persons resulting from living in proximity to pe23 trochemical and oil refinery facilities. The Secretary shall 

24 consult with the Director of the National Cancer Institute 

25 and other Federal Government bodies with expertise in the 
537

•HR 1640 IH 

1 field it deems appropriate in the design of such study. The 

2 study shall be conducted according to sound and objective 

3 scientific practices and present the weight of the scientific 

4 evidence. The Secretary shall obtain scientific peer review 

5 of the draft study. 

6 (b) REPORT TO CONGRESS.—The Secretary shall 

7 transmit the results of the study to Congress within 6 

8 months of the enactment of this section. 

9 (c) AUTHORIZATION OF APPROPRIATIONS.—There 

10 are authorized to be appropriated to the Secretary for ac11 tivities under this section such sums as are necessary for 

12 the completion of the study. 

13 TITLE XV—ETHANOL AND 

14 MOTOR FUELS 

15 Subtitle A—General Provisions 

16 SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE 

17 FUEL. 

18 (a) IN GENERAL.—Section 211 of the Clean Air Act 

19 (42 U.S.C. 7545) is amended—

20 (1) by redesignating subsection (o) as sub21 section (q); and 

22 (2) by inserting after subsection (n) the fol23 lowing: 

24 ‘‘(o) RENEWABLE FUEL PROGRAM.—

25 ‘‘(1) DEFINITIONS.—In this section: 
538

•HR 1640 IH 

1 ‘‘(A) ETHANOL.—(i) The term ‘cellulosic 

2 biomass ethanol’ means ethanol derived from 

3 any lignocellulosic or hemicellulosic matter that 

4 is available on a renewable or recurring basis, 

5 including—

6 ‘‘(I) dedicated energy crops and trees; 

7 ‘‘(II) wood and wood residues; 

8 ‘‘(III) plants; 

9 ‘‘(IV) grasses; 

10 ‘‘(V) agricultural residues; and 

11 ‘‘(VI) fibers. 

12 ‘‘(ii) The term ‘waste derived ethanol’ 

13 means ethanol derived from—

14 ‘‘(I) animal wastes, including poultry 

15 fats and poultry wastes, and other waste 

16 materials; or 

17 ‘‘(II) municipal solid waste. 

18 ‘‘(B) RENEWABLE FUEL.—

19 ‘‘(i) IN GENERAL.—The term ‘renew20 able fuel’ means motor vehicle fuel that—

21 ‘‘(I)(aa) is produced from grain, 

22 starch, oilseeds, or other biomass; or 

23 ‘‘(bb) is natural gas produced 

24 from a biogas source, including a 

25 landfill, sewage waste treatment plant, 
539

•HR 1640 IH 

1 feedlot, or other place where decaying 

2 organic material is found; and 

3 ‘‘(II) is used to replace or reduce 

4 the quantity of fossil fuel present in a 

5 fuel mixture used to operate a motor 

6 vehicle. 

7 ‘‘(ii) INCLUSION.—The term ‘renew8 able fuel’ includes cellulosic biomass eth9 anol, waste derived ethanol, and biodiesel 

10 (as defined in section 312(f) of the Energy 

11 Policy Act of 1992 (42 U.S.C. 13220(f)) 

12 and any blending components derived from 

13 renewable fuel (provided that only the re14 newable fuel portion of any such blending 

15 component shall be considered part of the 

16 applicable volume under the renewable fuel 

17 program established by this subsection). 

18 ‘‘(C) SMALL REFINERY.—The term ‘small 

19 refinery’ means a refinery for which average ag20 gregate daily crude oil throughput for the cal21 endar year (as determined by dividing the ag22 gregate throughput for the calendar year by the 

23 number of days in the calendar year) does not 

24 exceed 75,000 barrels. 

25 ‘‘(2) RENEWABLE FUEL PROGRAM.—
540

•HR 1640 IH 

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

2 after the enactment of this subsection, the Ad3 ministrator shall promulgate regulations ensur4 ing that motor vehicle fuel sold or dispensed to 

5 consumers in the contiguous United States, on 

6 an annual average basis, contains the applicable 

7 volume of renewable fuel as specified in sub8 paragraph (B). Regardless of the date of pro9 mulgation, such regulations shall contain com10 pliance provisions for refiners, blenders, and 

11 importers, as appropriate, to ensure that the re12 quirements of this section are met, but shall not 

13 restrict where renewable fuel can be used, or 

14 impose any per-gallon obligation for the use of 

15 renewable fuel. If the Administrator does not 

16 promulgate such regulations, the applicable per17 centage referred to in paragraph (4), on a vol18 ume percentage of gasoline basis, shall be 2.2 

19 in 2005. 

20 ‘‘(B) APPLICABLE VOLUME.—

21 ‘‘(i) CALENDAR YEARS 2005 THROUGH

22 2012.—For the purpose of subparagraph 

23 (A), the applicable volume for any of cal24 endar years 2005 through 2012 shall be 
541

•HR 1640 IH 

1 determined in accordance with the fol2 lowing table:

Applicable volume of 

renewable fuel 

‘‘Calendar year (in billions of gallons) 

2005 ................................................................................................... 3.1

2006 ................................................................................................... 3.3

2007 ................................................................................................... 3.5

2008 ................................................................................................... 3.8

2009 ................................................................................................... 4.1

2010 ................................................................................................... 4.4

2011 ................................................................................................... 4.7

2012 ................................................................................................... 5.0

3 ‘‘(ii) CALENDAR YEAR 2013 AND

4 THEREAFTER.—For the purpose of sub5 paragraph (A), the applicable volume for 

6 calendar year 2013 and each calendar year 

7 thereafter shall be equal to the product ob8 tained by multiplying—

9 ‘‘(I) the number of gallons of 

10 gasoline that the Administrator esti11 mates will be sold or introduced into 

12 commerce in the calendar year; and 

13 ‘‘(II) the ratio that—

14 ‘‘(aa) 5.0 billion gallons of 

15 renewable fuels; bears to 

16 ‘‘(bb) the number of gallons 

17 of gasoline sold or introduced 

18 into commerce in calendar year 

19 2012. 
542

•HR 1640 IH 

1 ‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon 

2 the petition of a non-contiguous State, the Adminis3 trator may allow the renewable fuel program estab4 lished by subtitle A of title XV of the Energy Policy 

5 Act of 2005 to apply in such non-contiguous State 

6 at the same time or any time after the Adminis7 trator promulgates regulations under paragraph (2). 

8 The Administrator may promulgate or revise regula9 tions under paragraph (2), establish applicable per10 centages under paragraph (4), provide for the gen11 eration of credits under paragraph (6), and take 

12 such other actions as may be necessary to allow for 

13 the application of the renewable fuels program in a 

14 non-contiguous State. 

15 ‘‘(4) APPLICABLE PERCENTAGES.—

16 ‘‘(A) PROVISION OF ESTIMATE OF VOL17 UMES OF GASOLINE SALES.—Not later than Oc18 tober 31 of each of calendar years 2005 

19 through 2011, the Administrator of the Energy 

20 Information Administration shall provide to the 

21 Administrator of the Environmental Protection 

22 Agency an estimate of the volumes of gasoline 

23 that will be sold or introduced into commerce in 

24 the United States during the following calendar 

25 year. 
543

•HR 1640 IH 

1 ‘‘(B) DETERMINATION OF APPLICABLE

2 PERCENTAGES.—

3 ‘‘(i) IN GENERAL.—Not later than 

4 November 30 of each of the calendar years 

5 2005 through 2011, based on the estimate 

6 provided under subparagraph (A), the Ad7 ministrator shall determine and publish in 

8 the Federal Register, with respect to the 

9 following calendar year, the renewable fuel 

10 obligation that ensures that the require11 ments of paragraph (2) are met. 

12 ‘‘(ii) REQUIRED ELEMENTS.—The re13 newable fuel obligation determined for a 

14 calendar year under clause (i) shall—

15 ‘‘(I) be applicable to refiners, 

16 blenders, and importers, as appro17 priate; 

18 ‘‘(II) be expressed in terms of a 

19 volume percentage of gasoline sold or 

20 introduced into commerce; and 

21 ‘‘(III) subject to subparagraph 

22 (C)(i), consist of a single applicable 

23 percentage that applies to all cat24 egories of persons specified in sub25 clause (I). 
544

•HR 1640 IH 

1 ‘‘(C) ADJUSTMENTS.—In determining the 

2 applicable percentage for a calendar year, the 

3 Administrator shall make adjustments—

4 ‘‘(i) to prevent the imposition of re5 dundant obligations to any person specified 

6 in subparagraph (B)(ii)(I); and 

7 ‘‘(ii) to account for the use of renew8 able fuel during the previous calendar year 

9 by small refineries that are exempt under 

10 paragraph (11). 

11 ‘‘(5) EQUIVALENCY.—For the purpose of para12 graph (2), 1 gallon of either cellulosic biomass eth13 anol or waste derived ethanol—

14 ‘‘(A) shall be considered to be the equiva15 lent of 1.5 gallon of renewable fuel; or 

16 ‘‘(B) if the cellulostic biomass ethanol or 

17 waste derived ethanol is derived from agricul18 tural residue or wood residue or is an agricul19 tural byproduct (as that term is used in section 

20 919 of the Energy Policy Act of 2005), shall be 

21 considered to be the equivalent of 2.5 gallons of 

22 renewable fuel. 

23 ‘‘(6) CREDIT PROGRAM.—

24 ‘‘(A) IN GENERAL.—The regulations pro25 mulgated to carry out this subsection shall pro-
545

•HR 1640 IH 

1 vide for the generation of an appropriate 

2 amount of credits by any person that refines, 

3 blends, or imports gasoline that contains a 

4 quantity of renewable fuel that is greater than 

5 the quantity required under paragraph (2). 

6 Such regulations shall provide for the genera7 tion of an appropriate amount of credits for 

8 biodiesel fuel. If a small refinery notifies the 

9 Administrator that it waives the exemption pro10 vided paragraph (11), the regulations shall pro11 vide for the generation of credits by the small 

12 refinery beginning in the year following such 

13 notification. 

14 ‘‘(B) USE OF CREDITS.—A person that 

15 generates credits under subparagraph (A) may 

16 use the credits, or transfer all or a portion of 

17 the credits to another person, for the purpose 

18 of complying with paragraph (2). 

19 ‘‘(C) LIFE OF CREDITS.—A credit gen20 erated under this paragraph shall be valid to 

21 show compliance—

22 ‘‘(i) in the calendar year in which the 

23 credit was generated or the next calendar 

24 year; or 
546

•HR 1640 IH 

1 ‘‘(ii) in the calendar year in which the 

2 credit was generated or next two consecu3 tive calendar years if the Administrator 

4 promulgates regulations under paragraph 

5 (7). 

6 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

7 CREDITS.—The regulations promulgated to 

8 carry out this subsection shall include provi9 sions allowing any person that is unable to gen10 erate or purchase sufficient credits to meet the 

11 requirements under paragraph (2) to carry for12 ward a renewable fuel deficit provided that, in 

13 the calendar year following the year in which 

14 the renewable fuel deficit is created, such per15 son shall achieve compliance with the renewable 

16 fuel requirement under paragraph (2), and shall 

17 generate or purchase additional renewable fuel 

18 credits to offset the renewable fuel deficit of the 

19 previous year. 

20 ‘‘(7) SEASONAL VARIATIONS IN RENEWABLE

21 FUEL USE.—

22 ‘‘(A) STUDY.—For each of the calendar 

23 years 2005 through 2012, the Administrator of 

24 the Energy Information Administration shall 

25 conduct a study of renewable fuels blending to 
547

•HR 1640 IH 

1 determine whether there are excessive seasonal 

2 variations in the use of renewable fuels. 

3 ‘‘(B) REGULATION OF EXCESSIVE SEA4 SONAL VARIATIONS.—If, for any calendar year, 

5 the Administrator of the Energy Information 

6 Administration, based on the study under sub7 paragraph (A), makes the determinations speci8 fied in subparagraph (C), the Administrator 

9 shall promulgate regulations to ensure that 35 

10 percent or more of the quantity of renewable 

11 fuels necessary to meet the requirement of 

12 paragraph (2) is used during each of the peri13 ods specified in subparagraph (D) of each sub14 sequent calendar year. 

15 ‘‘(C) DETERMINATIONS.—The determina16 tions referred to in subparagraph (B) are 

17 that—

18 ‘‘(i) less than 35 percent of the quan19 tity of renewable fuels necessary to meet 

20 the requirement of paragraph (2) has been 

21 used during one of the periods specified in 

22 subparagraph (D) of the calendar year; 

23 ‘‘(ii) a pattern of excessive seasonal 

24 variation described in clause (i) will con25 tinue in subsequent calendar years; and 
548

•HR 1640 IH 

1 ‘‘(iii) promulgating regulations or 

2 other requirements to impose a 35 percent 

3 or more seasonal use of renewable fuels 

4 will not prevent or interfere with the at5 tainment of national ambient air quality 

6 standards or significantly increase the 

7 price of motor fuels to the consumer. 

8 ‘‘(D) PERIODS.—The two periods referred 

9 to in this paragraph are—

10 ‘‘(i) April through September; and 

11 ‘‘(ii) January through March and Oc12 tober through December. 

13 ‘‘(E) EXCLUSIONS.—Renewable fuels 

14 blended or consumed in 2005 in a State which 

15 has received a waiver under section 209(b) shall 

16 not be included in the study in subparagraph 

17 (A). 

18 ‘‘(8) WAIVERS.—

19 ‘‘(A) IN GENERAL.—The Administrator, in 

20 consultation with the Secretary of Agriculture 

21 and the Secretary of Energy, may waive the re22 quirement of paragraph (2) in whole or in part 

23 on petition by one or more States by reducing 

24 the national quantity of renewable fuel required 

25 under this subsection—
549

•HR 1640 IH 

1 ‘‘(i) based on a determination by the 

2 Administrator, after public notice and op3 portunity for comment, that implementa4 tion of the requirement would severely 

5 harm the economy or environment of a 

6 State, a region, or the United States; or 

7 ‘‘(ii) based on a determination by the 

8 Administrator, after public notice and op9 portunity for comment, that there is an in10 adequate domestic supply or distribution 

11 capacity to meet the requirement. 

12 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad13 ministrator, in consultation with the Secretary 

14 of Agriculture and the Secretary of Energy, 

15 shall approve or disapprove a State petition for 

16 a waiver of the requirement of paragraph (2) 

17 within 90 days after the date on which the peti18 tion is received by the Administrator. 

19 ‘‘(C) TERMINATION OF WAIVERS.—A waiv20 er granted under subparagraph (A) shall termi21 nate after 1 year, but may be renewed by the 

22 Administrator after consultation with the Sec23 retary of Agriculture and the Secretary of En24 ergy. 
550

•HR 1640 IH 

1 ‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF

2 PROGRAM.—Not later than 180 days after the enact3 ment of this subsection, the Secretary of Energy 

4 shall complete for the Administrator a study assess5 ing whether the renewable fuels requirement under 

6 paragraph (2) will likely result in significant adverse 

7 consumer impacts in 2005, on a national, regional, 

8 or State basis. Such study shall evaluate renewable 

9 fuel supplies and prices, blendstock supplies, and 

10 supply and distribution system capabilities. Based 

11 on such study, the Secretary shall make specific rec12 ommendations to the Administrator regarding waiv13 er of the requirements of paragraph (2), in whole or 

14 in part, to avoid any such adverse impacts. Within 

15 270 days after the enactment of this subsection, the 

16 Administrator shall, consistent with the rec17 ommendations of the Secretary, waive, in whole or in 

18 part, the renewable fuels requirement under para19 graph (2) by reducing the national quantity of re20 newable fuel required under this subsection in 2005. 

21 This paragraph shall not be interpreted as limiting 

22 the Administrator’s authority to waive the require23 ments of paragraph (2) in whole, or in part, under 

24 paragraph (8) or paragraph (10), pertaining to 

25 waivers. 
551

•HR 1640 IH 

1 ‘‘(10) ASSESSMENT AND WAIVER.—The Admin2 istrator, in consultation with the Secretary of En3 ergy and the Secretary of Agriculture, shall evaluate 

4 the requirement of paragraph (2) and determine, 

5 prior to January 1, 2007, and prior to January 1 

6 of any subsequent year in which the applicable vol7 ume of renewable fuel is increased under paragraph 

8 (2)(B), whether the requirement of paragraph (2), 

9 including the applicable volume of renewable fuel 

10 contained in paragraph (2)(B) should remain in ef11 fect, in whole or in part, during 2007 or any year 

12 or years subsequent to 2007. In evaluating the re13 quirement of paragraph (2) and in making any de14 termination under this section, the Administrator 

15 shall consider the best available information and 

16 data collected by accepted methods or best available 

17 means regarding—

18 ‘‘(A) the capacity of renewable fuel pro19 ducers to supply an adequate amount of renew20 able fuel at competitive prices to fulfill the re21 quirement of paragraph (2); 

22 ‘‘(B) the potential of the requirement of 

23 paragraph (2) to significantly raise the price of 

24 gasoline, food (excluding the net price impact 

25 on the requirement in paragraph (2) on com-
552

•HR 1640 IH 

1 modities used in the production of ethanol), or 

2 heating oil for consumers in any significant 

3 area or region of the country above the price 

4 that would otherwise apply to such commodities 

5 in the absence of such requirement; 

6 ‘‘(C) the potential of the requirement of 

7 paragraph (2) to interfere with the supply of 

8 fuel in any significant gasoline market or region 

9 of the country, including interference with the 

10 efficient operation of refiners, blenders, import11 ers, wholesale suppliers, and retail vendors of 

12 gasoline, and other motor fuels; and 

13 ‘‘(D) the potential of the requirement of 

14 paragraph (2) to cause or promote exceedances 

15 of Federal, State, or local air quality standards. 

16 If the Administrator determines, by clear and con17 vincing information, after public notice and the op18 portunity for comment, that the requirement of 

19 paragraph (2) would have significant and meaning20 ful adverse impact on the supply of fuel and related 

21 infrastructure or on the economy, public health, or 

22 environment of any significant area or region of the 

23 country, the Administrator may waive, in whole or 

24 in part, the requirement of paragraph (2) in any one 

25 year for which the determination is made for that 
553

•HR 1640 IH 

1 area or region of the country, except that any such 

2 waiver shall not have the effect of reducing the ap3 plicable volume of renewable fuel specified in para4 graph (2)(B) with respect to any year for which the 

5 determination is made. In determining economic im6 pact under this paragraph, the Administrator shall 

7 not consider the reduced revenues available from the 

8 Highway Trust Fund (section 9503 of the Internal 

9 Revenue Code of 1986) as a result of the use of eth10 anol. 

11 ‘‘(11) SMALL REFINERIES.—

12 ‘‘(A) IN GENERAL.—The requirement of 

13 paragraph (2) shall not apply to small refineries 

14 until the first calendar year beginning more 

15 than 5 years after the first year set forth in the 

16 table in paragraph (2)(B)(i). Not later than De17 cember 31, 2007, the Secretary of Energy shall 

18 complete for the Administrator a study to de19 termine whether the requirement of paragraph 

20 (2) would impose a disproportionate economic 

21 hardship on small refineries. For any small re22 finery that the Secretary of Energy determines 

23 would experience a disproportionate economic 

24 hardship, the Administrator shall extend the 
554

•HR 1640 IH 

1 small refinery exemption for such small refinery 

2 for no less than two additional years. 

3 ‘‘(B) ECONOMIC HARDSHIP.—

4 ‘‘(i) EXTENSION OF EXEMPTION.—A 

5 small refinery may at any time petition the 

6 Administrator for an extension of the ex7 emption from the requirement of para8 graph (2) for the reason of dispropor9 tionate economic hardship. In evaluating a 

10 hardship petition, the Administrator, in 

11 consultation with the Secretary of Energy, 

12 shall consider the findings of the study in 

13 addition to other economic factors. 

14 ‘‘(ii) DEADLINE FOR ACTION ON PETI15 TIONS.—The Administrator shall act on 

16 any petition submitted by a small refinery 

17 for a hardship exemption not later than 90 

18 days after the receipt of the petition. 

19 ‘‘(C) CREDIT PROGRAM.—If a small refin20 ery notifies the Administrator that it waives the 

21 exemption provided by this Act, the regulations 

22 shall provide for the generation of credits by 

23 the small refinery beginning in the year fol24 lowing such notification. 
555

•HR 1640 IH 

1 ‘‘(D) OPT-IN FOR SMALL REFINERS.—A 

2 small refinery shall be subject to the require3 ments of this section if it notifies the Adminis4 trator that it waives the exemption under sub5 paragraph (A). 

6 ‘‘(12) ETHANOL MARKET CONCENTRATION

7 ANALYSIS.—

8 ‘‘(A) ANALYSIS.—

9 ‘‘(i) IN GENERAL.—Not later than 

10 180 days after the date of enactment of 

11 this subsection, and annually thereafter, 

12 the Federal Trade Commission shall per13 form a market concentration analysis of 

14 the ethanol production industry using the 

15 Herfindahl-Hirschman Index to determine 

16 whether there is sufficient competition 

17 among industry participants to avoid price 

18 setting and other anticompetitive behavior. 

19 ‘‘(ii) SCORING.—For the purpose of 

20 scoring under clause (i) using the 

21 Herfindahl-Hirschman Index, all mar22 keting arrangements among industry par23 ticipants shall be considered. 

24 ‘‘(B) REPORT.—Not later than December 

25 1, 2005, and annually thereafter, the Federal 
556

•HR 1640 IH 

1 Trade Commission shall submit to Congress 

2 and the Administrator a report on the results 

3 of the market concentration analysis performed 

4 under subparagraph (A)(i).’’. 

5 (b) PENALTIES AND ENFORCEMENT.—Section 

6 211(d) of the Clean Air Act (42 U.S.C. 7545(d)) is 

7 amended as follows: 

8 (1) In paragraph (1)—

9 (A) in the first sentence, by striking ‘‘or 

10 (n)’’ each place it appears and inserting ‘‘(n), 

11 or (o)’’; and 

12 (B) in the second sentence, by striking ‘‘or 

13 (m)’’ and inserting ‘‘(m), or (o)’’. 

14 (2) In the first sentence of paragraph (2), by 

15 striking ‘‘and (n)’’ each place it appears and insert16 ing ‘‘(n), and (o)’’. 

17 (c) SURVEY OF RENEWABLE FUEL MARKET.—

18 (1) SURVEY AND REPORT.—Not later than De19 cember 1, 2006, and annually thereafter, the Admin20 istrator of the Environmental Protection Agency (in 

21 consultation with the Secretary of Energy acting 

22 through the Administrator of the Energy Informa23 tion Administration) shall—

24 (A) conduct, with respect to each conven25 tional gasoline use area and each reformulated 
557

•HR 1640 IH 

1 gasoline use area in each State, a survey to de2 termine the market shares of—

3 (i) conventional gasoline containing 

4 ethanol; 

5 (ii) reformulated gasoline containing 

6 ethanol; 

7 (iii) conventional gasoline containing 

8 renewable fuel; and 

9 (iv) reformulated gasoline containing 

10 renewable fuel; and 

11 (B) submit to Congress, and make publicly 

12 available, a report on the results of the survey 

13 under subparagraph (A). 

14 (2) RECORDKEEPING AND REPORTING RE15 QUIREMENTS.—The Administrator of the Environ16 mental Protection Agency (hereinafter in this sub17 section referred to as the ‘‘Administrator’’) may re18 quire any refiner, blender, or importer to keep such 

19 records and make such reports as are necessary to 

20 ensure that the survey conducted under paragraph 

21 (1) is accurate. The Administrator, to avoid duplica22 tive requirements, shall rely, to the extent prac23 ticable, on existing reporting and recordkeeping re24 quirements and other information available to the 
558

•HR 1640 IH 

1 Administrator including gasoline distribution pat2 terns that include multistate use areas. 

3 (3) APPLICABLE LAW.—Activities carried out 

4 under this subsection shall be conducted in a man5 ner designed to protect confidentiality of individual 

6 responses. 

7 SEC. 1502. FUELS SAFE HARBOR. 

8 (a) IN GENERAL.—Notwithstanding any other provi9 sion of Federal or State law, no renewable fuel, as defined 

10 by section 211(o)(1) of the Clean Air Act, or methyl ter11 tiary butyl ether (hereinafterin this section referred to as 

12 ‘‘MTBE’’), used or intended to be used as a motor vehicle 

13 fuel, nor any motor vehicle fuel containing such renewable 

14 fuel or MTBE, shall be deemed a defective product by vir15 tue of the fact that it is, or contains, such a renewable 

16 fuel or MTBE, if it does not violate a control or prohibi17 tion imposed by the Administrator of the Environmental 

18 Protection Agency (hereinafter in this section referred to 

19 as the ‘‘Administrator’’) under section 211 of such Act, 

20 and the manufacturer is in compliance with all requests 

21 for information under subsection (b) of such section 211 

22 of such Act. If the safe harbor provided by this section 

23 does not apply, the existence of a claim of defective prod24 uct shall be determined under otherwise applicable law. 

25 Nothing in this subsection shall be construed to affect the 
559

•HR 1640 IH 

1 liability of any person for environmental remediation costs, 

2 drinking water contamination, negligence for spills or 

3 other reasonably foreseeable events, public or private nui4 sance, trespass, breach of warranty, breach of contract, 

5 or any other liability other than liability based upon a 

6 claim of defective product. 

7 (b) EFFECTIVE DATE.—This section shall be effec8 tive as of September 5, 2003, and shall apply with respect 

9 to all claims filed on or after that date. 

10 SEC. 1503. FINDINGS AND MTBE TRANSITION ASSISTANCE. 

11 (a) FINDINGS.—Congress finds that—

12 (1) since 1979, methyl tertiary butyl ether 

13 (hereinafter in this section referred to as ‘‘MTBE’’) 

14 has been used nationwide at low levels in gasoline to 

15 replace lead as an octane booster or anti-knocking 

16 agent; 

17 (2) Public Law 101–549 (commonly known as 

18 the ‘‘Clean Air Act Amendments of 1990’’) (42 

19 U.S.C. 7401 et seq.) established a fuel oxygenate 

20 standard under which reformulated gasoline must 

21 contain at least 2 percent oxygen by weight; 

22 (3) at the time of the adoption of the fuel oxy23 gen standard, Congress was aware that significant 

24 use of MTBE would result from the adoption of that 

25 standard, and that the use of MTBE would likely be 
560

•HR 1640 IH 

1 important to the cost-effective implementation of 

2 that program; 

3 (4) Congress was aware that gasoline and its 

4 component additives can and do leak from storage 

5 tanks; 

6 (5) the fuel industry responded to the fuel oxy7 genate standard established by Public Law 101–549 

8 by making substantial investments in—

9 (A) MTBE production capacity; and 

10 (B) systems to deliver MTBE-containing 

11 gasoline to the marketplace; 

12 (6) having previously required oxygenates like 

13 MTBE for air quality purposes, Congress has—

14 (A) reconsidered the relative value of 

15 MTBE in gasoline; 

16 (B) decided to establish a date certain for 

17 action by the Environmental Protection Agency 

18 to prohibit the use of MTBE in gasoline; and 

19 (C) decided to provide for the elimination 

20 of the oxygenate requirement for reformulated 

21 gasoline and to provide for a renewable fuels 

22 content requirement for motor fuel; and 

23 (7) it is appropriate for Congress to provide 

24 some limited transition assistance—
561

•HR 1640 IH 

1 (A) to merchant producers of MTBE who 

2 produced MTBE in response to a market cre3 ated by the oxygenate requirement contained in 

4 the Clean Air Act; and 

5 (B) for the purpose of mitigating any fuel 

6 supply problems that may result from the elimi7 nation of the oxygenate requirement for refor8 mulated gasoline and from the decision to es9 tablish a date certain for action by the Environ10 mental Protection Agency to prohibit the use of 

11 MTBE in gasoline. 

12 (b) PURPOSES.—The purpose of this section is to 

13 provide assistance to merchant producers of MTBE in 

14 making the transition from producing MTBE to producing 

15 other fuel additives. 

16 (c) MTBE MERCHANT PRODUCER CONVERSION AS17 SISTANCE.—Section 211(c) of the Clean Air Act (42 

18 U.S.C. 7545(c)) is amended by adding at the end the fol19 lowing: 

20 ‘‘(5) MTBE MERCHANT PRODUCER CONVER21 SION ASSISTANCE.—

22 ‘‘(A) IN GENERAL.—

23 ‘‘(i) GRANTS.—The Secretary of En24 ergy, in consultation with the Adminis25 trator, may make grants to merchant pro-
562

•HR 1640 IH 

1 ducers of methyl tertiary butyl ether (here2 inafter in this subsection referred to as 

3 ‘MTBE’) in the United States to assist the 

4 producers in the conversion of eligible pro5 duction facilities described in subpara6 graph (C) to the production of iso-octane, 

7 iso-octene, alkylates, or renewable fuels. 

8 ‘‘(ii) DETERMINATION.—The Admin9 istrator, in consultation with the Secretary 

10 of Energy, may determine that transition 

11 assistance for the production of iso-octane, 

12 iso-octene, alkylates, or renewable fuels is 

13 inconsistent with the provisions of sub14 paragraph (B) and, on that basis, may 

15 deny applications for grants authorized by 

16 this paragraph. 

17 ‘‘(B) FURTHER GRANTS.—The Secretary 

18 of Energy, in consultation with the Adminis19 trator, may also further make grants to mer20 chant producers of MTBE in the United States 

21 to assist the producers in the conversion of eli22 gible production facilities described in subpara23 graph (C) to the production of such other fuel 

24 additives (unless the Administrator determines 

25 that such fuel additives may reasonably be an-
563

•HR 1640 IH 

1 ticipated to endanger public health or the envi2 ronment) that, consistent with this subsection—

3 ‘‘(i) have been registered and have 

4 been tested or are being tested in accord5 ance with the requirements of this section; 

6 and 

7 ‘‘(ii) will contribute to replacing gaso8 line volumes lost as a result of amend9 ments made to subsection (k) of this sec10 tion by section 1504(a) and 1506 of the 

11 Energy Policy Act of 2005. 

12 ‘‘(C) ELIGIBLE PRODUCTION FACILI13 TIES.—A production facility shall be eligible to 

14 receive a grant under this paragraph if the pro15 duction facility—

16 ‘‘(i) is located in the United States; 

17 and 

18 ‘‘(ii) produced MTBE for consump19 tion before April 1, 2003 and ceased pro20 duction at any time after the date of en21 actment of this paragraph. 

22 ‘‘(D) AUTHORIZATION OF APPROPRIA23 TIONS.—There are authorized to be appro24 priated to carry out this paragraph 

25 $250,000,000 for each of fiscal years 2005 
564

•HR 1640 IH 

1 through 2012, to remain available until ex2 pended.’’. 

3 SEC. 1504. USE OF MTBE. 

4 (a) IN GENERAL.—Subject to subsections (e) and (f), 

5 not later than December 31, 2014, the use of methyl ter6 tiary butyl ether (hereinafter in this section referred to 

7 as ‘‘MTBE’’) in motor vehicle fuel in any State other than 

8 a State described in subsection (c) is prohibited. 

9 (b) REGULATIONS.—The Administrator of the Envi10 ronmental Protection Agency (hereafter referred to in this 

11 section as the ‘‘Administrator’’) shall promulgate regula12 tions to effect the prohibition in subsection (a). 

13 (c) STATES THAT AUTHORIZE USE.—A State de14 scribed in this subsection is a State in which the Governor 

15 of the State submits a notification to the Administrator 

16 authorizing the use of MTBE in motor vehicle fuel sold 

17 or used in the State. 

18 (d) PUBLICATION OF NOTICE.—The Administrator 

19 shall publish in the Federal Register each notice submitted 

20 by a State under subsection (c). 

21 (e) TRACE QUANTITIES.—In carrying out subsection 

22 (a), the Administrator may allow trace quantities of 

23 MTBE, not to exceed 0.5 percent by volume, to be present 

24 in motor vehicle fuel in cases that the Administrator deter25 mines to be appropriate. 
565

•HR 1640 IH 

1 (f) LIMITATION.—The Administrator, under author2 ity of subsection (a), shall not prohibit or control the pro3 duction of MTBE for export from the United States or 

4 for any other use other than for use in motor vehicle fuel. 

5 (g) EFFECT ON STATE LAW.—The amendments 

6 made by this title have no effect regarding any available 

7 authority of States to limit the use of methyl tertiary butyl 

8 ether in motor vehicle fuel. 

9 SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND 

10 PRESIDENTIAL DETERMINATION. 

11 (a) NAS REVIEW.—Not later than May 31, 2013, the 

12 Secretary shall enter into an arrangement with the Na13 tional Academy of Sciences to review the use of methyl 

14 tertiary butyl ether (hereafter referred to in this section 

15 as ‘‘MTBE’’) in fuel and fuel additives. The review shall 

16 only use the best available scientific information and data 

17 collected by accepted methods or the best available means. 

18 The review shall examine the use of MTBE in fuel and 

19 fuel additives, significant beneficial and detrimental ef20 fects of this use on environmental quality or public health 

21 or welfare including the costs and benefits of such effects, 

22 likely effects of controls or prohibitions on MTBE regard23 ing fuel availability and price, and other appropriate and 

24 reasonable actions that are available to protect the envi25 ronment or public health or welfare from any detrimental 
566

•HR 1640 IH 

1 effects of the use of MTBE in fuel or fuel additives. The 

2 review shall be peer-reviewed prior to publication and all 

3 supporting data and analytical models shall be available 

4 to the public. The review shall be completed no later than 

5 May 31, 2014. 

6 (b) PRESIDENTIAL DETERMINATION.—No later than 

7 June 30, 2014, the President may make a determination 

8 that restrictions on the use of MTBE to be implemented 

9 pursuant to section 1504 shall not take place and that 

10 the legal authority contained in section 1504 to prohibit 

11 the use of MTBE in motor vehicle fuel shall become null 

12 and void. 

13 SEC. 1506. ELIMINATION OF OXYGEN CONTENT REQUIRE14 MENT FOR REFORMULATED GASOLINE. 

15 (a) ELIMINATION.—

16 (1) IN GENERAL.—Section 211(k) of the Clean 

17 Air Act (42 U.S.C. 7545(k)) is amended as follows: 

18 (A) In paragraph (2)—

19 (i) in the second sentence of subpara20 graph (A), by striking ‘‘(including the oxy21 gen content requirement contained in sub22 paragraph (B))’’; 

23 (ii) by striking subparagraph (B); and 
567

•HR 1640 IH 

1 (iii) by redesignating subparagraphs 

2 (C) and (D) as subparagraphs (B) and 

3 (C), respectively. 

4 (B) In paragraph (3)(A), by striking 

5 clause (v). 

6 (C) In paragraph (7)—

7 (i) in subparagraph (A)—

8 (I) by striking clause (i); and 

9 (II) by redesignating clauses (ii) 

10 and (iii) as clauses (i) and (ii), respec11 tively; and 

12 (ii) in subparagraph (C)—

13 (I) by striking clause (ii). 

14 (II) by redesignating clause (iii) 

15 as clause (ii). 

16 (2) EFFECTIVE DATE.—The amendments made 

17 by paragraph (1) take effect 270 days after the date 

18 of enactment of this Act, except that such amend19 ments shall take effect upon such date of enactment 

20 in any State that has received a waiver under sec21 tion 209(b) of the Clean Air Act. 

22 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS23 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air 

24 Act (42 U.S.C. 7545(k)(1)) is amended as follows: 
568

•HR 1640 IH 

1 (1) By striking ‘‘Within 1 year after the enact2 ment of the Clean Air Act Amendments of 1990,’’ 

3 and inserting the following: 

4 ‘‘(A) IN GENERAL.—Not later than No5 vember 15, 1991,’’. 

6 (2) By adding at the end the following: 

7 ‘‘(B) MAINTENANCE OF TOXIC AIR POL8 LUTANT EMISSIONS REDUCTIONS FROM REFOR9 MULATED GASOLINE.—

10 ‘‘(i) DEFINITIONS.—In this subpara11 graph the term ‘PADD’ means a Petro12 leum Administration for Defense District. 

13 ‘‘(ii) REGULATIONS REGARDING EMIS14 SIONS OF TOXIC AIR POLLUTANTS.—Not 

15 later than 270 days after the date of en16 actment of this subparagraph the Adminis17 trator shall establish, for each refinery or 

18 importer, standards for toxic air pollutants 

19 from use of the reformulated gasoline pro20 duced or distributed by the refinery or im21 porter that maintain the reduction of the 

22 average annual aggregate emissions of 

23 toxic air pollutants for reformulated gaso24 line produced or distributed by the refinery 

25 or importer during calendar years 1999 
569

•HR 1640 IH 

1 and 2000, determined on the basis of data 

2 collected by the Administrator with respect 

3 to the refinery or importer. 

4 ‘‘(iii) STANDARDS APPLICABLE TO

5 SPECIFIC REFINERIES OR IMPORTERS.—

6 ‘‘(I) APPLICABILITY OF STAND7 ARDS.—For any calendar year, the 

8 standards applicable to a refinery or 

9 importer under clause (ii) shall apply 

10 to the quantity of gasoline produced 

11 or distributed by the refinery or im12 porter in the calendar year only to the 

13 extent that the quantity is less than 

14 or equal to the average annual quan15 tity of reformulated gasoline produced 

16 or distributed by the refinery or im17 porter during calendar years 1999 

18 and 2000. 

19 ‘‘(II) APPLICABILITY OF OTHER

20 STANDARDS.—For any calendar year, 

21 the quantity of gasoline produced or 

22 distributed by a refinery or importer 

23 that is in excess of the quantity sub24 ject to subclause (I) shall be subject 

25 to standards for toxic air pollutants 
570

•HR 1640 IH 

1 promulgated under subparagraph (A) 

2 and paragraph (3)(B). 

3 ‘‘(iv) CREDIT PROGRAM.—The Admin4 istrator shall provide for the granting and 

5 use of credits for emissions of toxic air pol6 lutants in the same manner as provided in 

7 paragraph (7). 

8 ‘‘(v) REGIONAL PROTECTION OF

9 TOXICS REDUCTION BASELINES.—

10 ‘‘(I) IN GENERAL.—Not later 

11 than 60 days after the date of enact12 ment of this subparagraph, and not 

13 later than April 1 of each calendar 

14 year that begins after that date of en15 actment, the Administrator shall pub16 lish in the Federal Register a report 

17 that specifies, with respect to the pre18 vious calendar year—

19 ‘‘(aa) the quantity of refor20 mulated gasoline produced that is 

21 in excess of the average annual 

22 quantity of reformulated gasoline 

23 produced in 1999 and 2000; and 

24 ‘‘(bb) the reduction of the 

25 average annual aggregate emis-
571

•HR 1640 IH 

1 sions of toxic air pollutants in 

2 each PADD, based on retail sur3 vey data or data from other ap4 propriate sources. 

5 ‘‘(II) EFFECT OF FAILURE TO

6 MAINTAIN AGGREGATE TOXICS RE7 DUCTIONS.—If, in any calendar year, 

8 the reduction of the average annual 

9 aggregate emissions of toxic air pol10 lutants in a PADD fails to meet or 

11 exceed the reduction of the average 

12 annual aggregate emissions of toxic 

13 air pollutants in the PADD in cal14 endar years 1999 and 2000, the Ad15 ministrator, not later than 90 days 

16 after the date of publication of the re17 port for the calendar year under sub18 clause (I), shall—

19 ‘‘(aa) identify, to the max20 imum extent practicable, the rea21 sons for the failure, including the 

22 sources, volumes, and character23 istics of reformulated gasoline 

24 that contributed to the failure; 

25 and 
572

•HR 1640 IH 

1 ‘‘(bb) promulgate revisions 

2 to the regulations promulgated 

3 under clause (ii), to take effect 

4 not earlier than 180 days but not 

5 later than 270 days after the 

6 date of promulgation, to provide 

7 that, notwithstanding clause 

8 (iii)(II), all reformulated gasoline 

9 produced or distributed at each 

10 refinery or importer shall meet 

11 the standards applicable under 

12 clause (ii) not later than April 1 

13 of the year following the report 

14 in subclause (II) and for subse15 quent years. 

16 ‘‘(vi) REGULATIONS TO CONTROL

17 HAZARDOUS AIR POLLUTANTS FROM

18 MOTOR VEHICLES AND MOTOR VEHICLE

19 FUELS.—Not later than July 1, 2005, the 

20 Administrator shall promulgate final regu21 lations to control hazardous air pollutants 

22 from motor vehicles and motor vehicle 

23 fuels, as provided for in section 80.1045 of 

24 title 40, Code of Federal Regulations (as 
573

•HR 1640 IH 

1 in effect on the date of enactment of this 

2 subparagraph).’’. 

3 (c) CONSOLIDATION IN REFORMULATED GASOLINE

4 REGULATIONS.—Not later than 180 days after the date 

5 of enactment of this Act, the Administrator of the Envi6 ronmental Protection Agency shall revise the reformulated 

7 gasoline regulations under subpart D of part 80 of title 

8 40, Code of Federal Regulations, to consolidate the regula9 tions applicable to VOC-Control Regions 1 and 2 under 

10 section 80.41 of that title by eliminating the less stringent 

11 requirements applicable to gasoline designated for VOC12 Control Region 2 and instead applying the more stringent 

13 requirements applicable to gasoline designated for VOC14 Control Region 1. 

15 (d) SAVINGS CLAUSE.—Nothing in this section is in16 tended to affect or prejudice either any legal claims or ac17 tions with respect to regulations promulgated by the Ad18 ministrator of the Environmental Protection Agency 

19 (hereinafter in this subsection referred to as the ‘‘Admin20 istrator’’) prior to the date of enactment of this Act re21 garding emissions of toxic air pollutants from motor vehi22 cles or the adjustment of standards applicable to a specific 

23 refinery or importer made under such prior regulations 

24 and the Administrator may apply such adjustments to the 

25 standards applicable to such refinery or importer under 
574

•HR 1640 IH 

1 clause (iii)(I) of section 211(k)(1)(B) of the Clean Air Act, 

2 except that—

3 (1) the Administrator shall revise such adjust4 ments to be based only on calendar years 1999–

5 2000; and 

6 (2) for adjustments based on toxic air pollutant 

7 emissions from reformulated gasoline significantly 

8 below the national annual average emissions of toxic 

9 air pollutants from all reformulated gasoline, the 

10 Administrator may revise such adjustments to take 

11 account of the scope of Federal or State prohibitions 

12 on the use of methyl tertiary butyl ether imposed 

13 after the date of the enactment of this paragraph, 

14 except that any such adjustment shall require such 

15 refiner or importer, to the greatest extent prac16 ticable, to maintain the reduction achieved during 

17 calendar years 1999–2000 in the average annual ag18 gregate emissions of toxic air pollutants from refor19 mulated gasoline produced or distributed by the re20 finery or importer; Provided, that any such adjust21 ment shall not be made at a level below the average 

22 percentage of reductions of emissions of toxic air 

23 pollutants for reformulated gasoline supplied to 

24 PADD I during calendar years 1999–2000. 
575

•HR 1640 IH 

1 SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

2 Section 211 of the Clean Air Act (42 U.S.C. 7545) 

3 is amended by inserting after subsection (o) the following: 

4 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

5 AND EMISSIONS MODEL.—

6 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.—

7 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

8 years after the date of enactment of this sub9 section, the Administrator shall publish for pub10 lic comment a draft analysis of the changes in 

11 emissions of air pollutants and air quality due 

12 to the use of motor vehicle fuel and fuel addi13 tives resulting from implementation of the 

14 amendments made by subtitle A of title XV of 

15 the Energy Policy Act of 2005. 

16 ‘‘(B) FINAL ANALYSIS.—After providing a 

17 reasonable opportunity for comment but not 

18 later than 5 years after the date of enactment 

19 of this paragraph, the Administrator shall pub20 lish the analysis in final form. 

21 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

22 this subsection, as soon as the necessary data are 

23 available, the Administrator shall develop and final24 ize an emissions model that reasonably reflects the 

25 effects of gasoline characteristics or components on 
576

•HR 1640 IH 

1 emissions from vehicles in the motor vehicle fleet 

2 during calendar year 2005.’’. 

3 SEC. 1508. DATA COLLECTION. 

4 Section 205 of the Department of Energy Organiza5 tion Act (42 U.S.C. 7135) is amended by adding at the 

6 end the following: 

7 ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 

8 improve the ability to evaluate the effectiveness of the Na9 tion’s renewable fuels mandate, the Administrator shall 

10 conduct and publish the results of a survey of renewable 

11 fuels demand in the motor vehicle fuels market in the 

12 United States monthly, and in a manner designed to pro13 tect the confidentiality of individual responses. In con14 ducting the survey, the Administrator shall collect infor15 mation both on a national and regional basis, including 

16 each of the following: 

17 ‘‘(A) The quantity of renewable fuels produced. 

18 ‘‘(B) The quantity of renewable fuels blended. 

19 ‘‘(C) The quantity of renewable fuels imported. 

20 ‘‘(D) The quantity of renewable fuels de21 manded. 

22 ‘‘(E) Market price data. 

23 ‘‘(F) Such other analyses or evaluations as the 

24 Administrator finds is necessary to achieve the pur25 poses of this section. 
577

•HR 1640 IH 

1 ‘‘(2) The Administrator shall also collect or estimate 

2 information both on a national and regional basis, pursu3 ant to subparagraphs (A) through (F) of paragraph (1), 

4 for the 5 years prior to implementation of this subsection. 

5 ‘‘(3) This subsection does not affect the authority of 

6 the Administrator to collect data under section 52 of the 

7 Federal Energy Administration Act of 1974 (15 U.S.C. 

8 790a).’’. 

9 SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL 

10 CONTROLS. 

11 (a) EPA APPROVAL OF STATE PLANS WITH FUEL

12 CONTROLS.—Section 211(c)(4)(C) of the Clean Air Act 

13 (42 U.S.C. 7545(c)(4)(C)) is amended by adding at the 

14 end the following: ‘‘The Administrator shall not approve 

15 a control or prohibition respecting the use of a fuel or fuel 

16 additive under this subparagraph unless the Adminis17 trator, after consultation with the Secretary of Energy, 

18 publishes in the Federal Register a finding that, in the 

19 Administrator’s judgment, such control or prohibition will 

20 not cause fuel supply or distribution interruptions or have 

21 a significant adverse impact on fuel producibility in the 

22 affected area or contiguous areas.’’. 

23 (b) STUDY.—The Administrator of the Environ24 mental Protection Agency (hereinafter in this subsection 

25 referred to as the ‘‘Administrator’’), in cooperation with 
578

•HR 1640 IH 

1 the Secretary of Energy, shall undertake a study of the 

2 projected effects on air quality, the proliferation of fuel 

3 blends, fuel availability, and fuel costs of providing a pref4 erence for each of the following: 

5 (A) Reformulated gasoline referred to in sub6 section (k) of section 211 of the Clean Air Act. 

7 (B) A low RVP gasoline blend that has been 

8 certified by the Administrator as having a Reid 

9 Vapor Pressure of 7.0 pounds per square inch (psi). 

10 (C) A low RVP gasoline blend that has been 

11 certified by the Administrator as having a Reid 

12 Vapor Pressure of 7.8 pounds per square inch (psi). 

13 In carrying out such study, the Administrator shall obtain 

14 comments from affected parties. The Administrator shall 

15 submit the results of such study to the Congress not later 

16 than 18 months after the date of enactment of this Act, 

17 together with any recommended legislative changes. 

18 SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

19 STUDY. 

20 (a) STUDY.—

21 (1) IN GENERAL.—The Administrator of the 

22 Environmental Protection Agency (hereinafter in 

23 this section referred to as the ‘‘Administrator’’) and 

24 the Secretary of Energy shall jointly conduct a study 
579

•HR 1640 IH 

1 of Federal, State, and local requirements concerning 

2 motor vehicle fuels, including—

3 (A) requirements relating to reformulated 

4 gasoline, volatility (measured in Reid vapor 

5 pressure), oxygenated fuel, and diesel fuel; and 

6 (B) other requirements that vary from 

7 State to State, region to region, or locality to 

8 locality. 

9 (2) REQUIRED ELEMENTS.—The study shall as10 sess—

11 (A) the effect of the variety of require12 ments described in paragraph (1) on the supply, 

13 quality, and price of motor vehicle fuels avail14 able to consumers in various States and local15 ities; 

16 (B) the effect of the requirements de17 scribed in paragraph (1) on achievement of—

18 (i) national, regional, and local air 

19 quality standards and goals; and 

20 (ii) related environmental and public 

21 health protection standards and goals; 

22 (C) the effect of Federal, State, and local 

23 motor vehicle fuel regulations, including mul24 tiple motor vehicle fuel requirements, on—

25 (i) domestic refineries; 
580

•HR 1640 IH 

1 (ii) the fuel distribution system; and 

2 (iii) industry investment in new capac3 ity; 

4 (D) the effect of the requirements de5 scribed in paragraph (1) on emissions from ve6 hicles, refineries, and fuel handling facilities; 

7 (E) the feasibility of developing national or 

8 regional motor vehicle fuel slates for the 48 

9 contiguous States that, while improving air 

10 quality at the national, regional and local levels 

11 consistent with the attainment of national am12 bient air quality standards, could—

13 (i) enhance flexibility in the fuel dis14 tribution infrastructure and improve fuel 

15 fungibility; 

16 (ii) reduce price volatility and costs to 

17 consumers and producers; 

18 (iii) provide increased liquidity to the 

19 gasoline market; and 

20 (iv) enhance fuel quality, consistency, 

21 and supply; 

22 (F) the feasibility of providing incentives 

23 to promote cleaner burning motor vehicle fuel; 

24 and 
581

•HR 1640 IH 

1 (G) the extent to which improvements in 

2 air quality and any increases or decreases in 

3 the price of motor fuel can be projected to re4 sult from the Environmental Protection Agen5 cy’s Tier II requirements for conventional gaso6 line and vehicle emission systems, the reformu7 lated gasoline program, the renewable content 

8 requirements established by this subtitle, State 

9 programs regarding gasoline volatility, and any 

10 other requirements imposed by States or local11 ities affecting the composition of motor fuel. 

12 (b) REPORT.—

13 (1) IN GENERAL.—Not later than December 31, 

14 2007, the Administrator and the Secretary of En15 ergy shall submit to Congress a report on the results 

16 of the study conducted under subsection (a). 

17 (2) RECOMMENDATIONS.—

18 (A) IN GENERAL.—The report under this 

19 subsection shall contain recommendations for 

20 legislative and administrative actions that may 

21 be taken—

22 (i) to improve air quality; 

23 (ii) to reduce costs to consumers and 

24 producers; and 

25 (iii) to increase supply liquidity. 
582

•HR 1640 IH 

1 (B) REQUIRED CONSIDERATIONS.—The 

2 recommendations under subparagraph (A) shall 

3 take into account the need to provide advance 

4 notice of required modifications to refinery and 

5 fuel distribution systems in order to ensure an 

6 adequate supply of motor vehicle fuel in all 

7 States. 

8 (3) CONSULTATION.—In developing the report 

9 under this subsection, the Administrator and the 

10 Secretary of Energy shall consult with—

11 (A) the Governors of the States; 

12 (B) automobile manufacturers; 

13 (C) motor vehicle fuel producers and dis14 tributors; and 

15 (D) the public. 

16 SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 

17 SOLID WASTE AND CELLULOSIC BIOMASS 

18 LOAN GUARANTEE PROGRAM. 

19 (a) DEFINITION OF MUNICIPAL SOLID WASTE.—In 

20 this section, the term ‘‘municipal solid waste’’ has the 

21 meaning given the term ‘‘solid waste’’ in section 1004 of 

22 the Solid Waste Disposal Act (42 U.S.C. 6903). 

23 (b) ESTABLISHMENT OF PROGRAM.—The Secretary 

24 of Energy (hereinafter in this section referred to as the 

25 ‘‘Secretary’’) shall establish a program to provide guaran-
583

•HR 1640 IH 

1 tees of loans by private institutions for the construction 

2 of facilities for the processing and conversion of municipal 

3 solid waste and cellulosic biomass into fuel ethanol and 

4 other commercial byproducts. 

5 (c) REQUIREMENTS.—The Secretary may provide a 

6 loan guarantee under subsection (b) to an applicant if—

7 (1) without a loan guarantee, credit is not 

8 available to the applicant under reasonable terms or 

9 conditions sufficient to finance the construction of a 

10 facility described in subsection (b); 

11 (2) the prospective earning power of the appli12 cant and the character and value of the security 

13 pledged provide a reasonable assurance of repayment 

14 of the loan to be guaranteed in accordance with the 

15 terms of the loan; and 

16 (3) the loan bears interest at a rate determined 

17 by the Secretary to be reasonable, taking into ac18 count the current average yield on outstanding obli19 gations of the United States with remaining periods 

20 of maturity comparable to the maturity of the loan. 

21 (d) CRITERIA.—In selecting recipients of loan guar22 antees from among applicants, the Secretary shall give 

23 preference to proposals that—

24 (1) meet all applicable Federal and State per25 mitting requirements; 
584

•HR 1640 IH 

1 (2) are most likely to be successful; and 

2 (3) are located in local markets that have the 

3 greatest need for the facility because of—

4 (A) the limited availability of land for 

5 waste disposal; 

6 (B) the availability of sufficient quantities 

7 of cellulosic biomass; or 

8 (C) a high level of demand for fuel ethanol 

9 or other commercial byproducts of the facility. 

10 (e) MATURITY.—A loan guaranteed under subsection 

11 (b) shall have a maturity of not more than 20 years. 

12 (f) TERMS AND CONDITIONS.—The loan agreement 

13 for a loan guaranteed under subsection (b) shall provide 

14 that no provision of the loan agreement may be amended 

15 or waived without the consent of the Secretary. 

16 (g) ASSURANCE OF REPAYMENT.—The Secretary 

17 shall require that an applicant for a loan guarantee under 

18 subsection (b) provide an assurance of repayment in the 

19 form of a performance bond, insurance, collateral, or other 

20 means acceptable to the Secretary in an amount equal to 

21 not less than 20 percent of the amount of the loan. 

22 (h) GUARANTEE FEE.—The recipient of a loan guar23 antee under subsection (b) shall pay the Secretary an 

24 amount determined by the Secretary to be sufficient to 
585

•HR 1640 IH 

1 cover the administrative costs of the Secretary relating to 

2 the loan guarantee. 

3 (i) FULL FAITH AND CREDIT.—The full faith and 

4 credit of the United States is pledged to the payment of 

5 all guarantees made under this section. Any such guar6 antee made by the Secretary shall be conclusive evidence 

7 of the eligibility of the loan for the guarantee with respect 

8 to principal and interest. The validity of the guarantee 

9 shall be incontestable in the hands of a holder of the guar10 anteed loan. 

11 (j) REPORTS.—Until each guaranteed loan under this 

12 section has been repaid in full, the Secretary shall annu13 ally submit to Congress a report on the activities of the 

14 Secretary under this section. 

15 (k) AUTHORIZATION OF APPROPRIATIONS.—There 

16 are authorized to be appropriated such sums as are nec17 essary to carry out this section. 

18 (l) TERMINATION OF AUTHORITY.—The authority of 

19 the Secretary to issue a loan guarantee under subsection 

20 (b) terminates on the date that is 10 years after the date 

21 of enactment of this Act. 

22 SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED 

23 ETHANOL CONVERSION ASSISTANCE. 

24 Section 211 of the Clean Air Act (42 U.S.C. 7545) 

25 is amended by adding at the end the following: 
586

•HR 1640 IH 

1 ‘‘(r) CELLULOSIC BIOMASS AND WASTE-DERIVED

2 ETHANOL CONVERSION ASSISTANCE.—

3 ‘‘(1) IN GENERAL.—The Secretary of Energy 

4 may provide grants to merchant producers of cel5 lulosic biomass ethanol and waste-derived ethanol in 

6 the United States to assist the producers in building 

7 eligible production facilities described in paragraph 

8 (2) for the production of ethanol. 

9 ‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A 

10 production facility shall be eligible to receive a grant 

11 under this subsection if the production facility—

12 ‘‘(A) is located in the United States; and 

13 ‘‘(B) uses cellulosic biomass or waste-de14 rived feedstocks derived from agricultural resi15 dues, wood residues, municipal solid waste, or 

16 agricultural byproducts as that term is used in 

17 section 919 of the Energy Policy Act of 2005. 

18 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.—

19 There are authorized to be appropriated the fol20 lowing amounts to carry out this subsection: 

21 ‘‘(A) $100,000,000 for fiscal year 2005. 

22 ‘‘(B) $250,000,000 for fiscal year 2006. 

23 ‘‘(C) $400,000,000 for fiscal year 2007.’’. 
587

•HR 1640 IH 

1 SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GAS2 OLINES. 

3 Section 211 of the Clean Air Act (42 U.S.C. 7545) 

4 is amended by adding at the end the following: 

5 ‘‘(s) BLENDING OF COMPLIANT REFORMULATED

6 GASOLINES.—

7 ‘‘(1) IN GENERAL.—Notwithstanding sub8 sections (h) and (k) and subject to the limitations in 

9 paragraph (2) of this subsection, it shall not be a 

10 violation of this subtitle for a gasoline retailer, dur11 ing any month of the year, to blend at a retail loca12 tion batches of ethanol-blended and non-ethanol13 blended reformulated gasoline, provided that—

14 ‘‘(A) each batch of gasoline to be blended 

15 has been individually certified as in compliance 

16 with subsections (h) and (k) prior to being 

17 blended; 

18 ‘‘(B) the retailer notifies the Administrator 

19 prior to such blending, and identifies the exact 

20 location of the retail station and the specific 

21 tank in which such blending will take place; 

22 ‘‘(C) the retailer retains and, as requested 

23 by the Administrator or the Administrator’s 

24 designee, makes available for inspection such 

25 certifications accounting for all gasoline at the 

26 retail outlet; and 
588

•HR 1640 IH 

1 ‘‘(D) the retailer does not, between June 1 

2 and September 15 of each year, blend a batch 

3 of VOC-controlled, or ‘summer’, gasoline with a 

4 batch of non-VOC-controlled, or ‘winter’, gaso5 line (as these terms are defined under sub6 sections (h) and (k)). 

7 ‘‘(2) LIMITATIONS.—

8 ‘‘(A) FREQUENCY LIMITATION.—A retailer 

9 shall only be permitted to blend batches of com10 pliant reformulated gasoline under this sub11 section a maximum of two blending periods be12 tween May 1 and September 15 of each cal13 endar year. 

14 ‘‘(B) DURATION OF BLENDING PERIOD.—

15 Each blending period authorized under sub16 paragraph (A) shall extend for a period of no 

17 more than 10 consecutive calendar days. 

18 ‘‘(3) SURVEYS.—A sample of gasoline taken 

19 from a retail location that has blended gasoline with20 in the past 30 days and is in compliance with sub21 paragraphs (A), (B), (C), and (D) of paragraph (1) 

22 shall not be used in a VOC survey mandated by 40 

23 C.F.R. Part 80. 

24 ‘‘(4) STATE IMPLEMENTATION PLANS.—A State 

25 shall be held harmless and shall not be required to 
589

•HR 1640 IH 

1 revise its State implementation plan under section 

2 110 to account for the emissions from blended gaso3 line authorized under paragraph (1). 

4 ‘‘(5) PRESERVATION OF STATE LAW.—Nothing 

5 in this subsection shall—

6 ‘‘(A) preempt existing State laws or regu7 lations regulating the blending of compliant 

8 gasolines; or 

9 ‘‘(B) prohibit a State from adopting such 

10 restrictions in the future. 

11 ‘‘(6) REGULATIONS.—The Administrator shall 

12 promulgate, after notice and comment, regulations 

13 implementing this subsection within one year after 

14 the date of enactment of this subsection. 

15 ‘‘(7) EFFECTIVE DATE.—This subsection shall 

16 become effective 15 months after the date of its en17 actment and shall apply to blended batches of refor18 mulated gasoline on or after that date, regardless of 

19 whether the implementing regulations required by 

20 paragraph (6) have been promulgated by the Admin21 istrator by that date. 

22 ‘‘(8) LIABILITY.—No person other than the 

23 person responsible for blending under this subsection 

24 shall be subject to an enforcement action or pen25 alties under subsection (d) solely arising from the 
590

•HR 1640 IH 

1 blending of compliant reformulated gasolines by the 

2 retailers. 

3 ‘‘(9) FORMULATION OF GASOLINE.—This sub4 section does not grant authority to the Adminis5 trator or any State (or any subdivision thereof) to 

6 require reformulation of gasoline at the refinery to 

7 adjust for potential or actual emissions increases due 

8 to the blending authorized by this subsection.’’. 

9 Subtitle B—Underground Storage 

10 Tank Compliance 

11 SEC. 1521. SHORT TITLE. 

12 This subtitle may be cited as the ‘‘Underground Stor13 age Tank Compliance Act of 2005’’. 

14 SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS. 

15 (a) IN GENERAL.—Section 9004 of the Solid Waste 

16 Disposal Act (42 U.S.C. 6991c) is amended by adding at 

17 the end the following: 

18 ‘‘(f) TRUST FUND DISTRIBUTION.—

19 ‘‘(1) IN GENERAL.—

20 ‘‘(A) AMOUNT AND PERMITTED USES OF

21 DISTRIBUTION.—The Administrator shall dis22 tribute to States not less than 80 percent of the 

23 funds from the Trust Fund that are made 

24 available to the Administrator under section 

25 9014(2)(A) for each fiscal year for use in pay-
591

•HR 1640 IH 

1 ing the reasonable costs, incurred under a coop2 erative agreement with any State for—

3 ‘‘(i) corrective actions taken by the 

4 State under section 9003(h)(7)(A); 

5 ‘‘(ii) necessary administrative ex6 penses, as determined by the Adminis7 trator, that are directly related to State 

8 fund or State assurance programs under 

9 subsection (c)(1); or 

10 ‘‘(iii) enforcement, by a State or a 

11 local government, of State or local regula12 tions pertaining to underground storage 

13 tanks regulated under this subtitle. 

14 ‘‘(B) USE OF FUNDS FOR ENFORCE15 MENT.—In addition to the uses of funds au16 thorized under subparagraph (A), the Adminis17 trator may use funds from the Trust Fund that 

18 are not distributed to States under subpara19 graph (A) for enforcement of any regulation 

20 promulgated by the Administrator under this 

21 subtitle. 

22 ‘‘(C) PROHIBITED USES.—Funds provided 

23 to a State by the Administrator under subpara24 graph (A) shall not be used by the State to pro25 vide financial assistance to an owner or oper-
592

•HR 1640 IH 

1 ator to meet any requirement relating to under2 ground storage tanks under subparts B, C, D, 

3 H, and G of part 280 of title 40, Code of Fed4 eral Regulations (as in effect on the date of en5 actment of this subsection). 

6 ‘‘(2) ALLOCATION.—

7 ‘‘(A) PROCESS.—Subject to subparagraphs 

8 (B) and (C), in the case of a State with which 

9 the Administrator has entered into a coopera10 tive agreement under section 9003(h)(7)(A), 

11 the Administrator shall distribute funds from 

12 the Trust Fund to the State using an allocation 

13 process developed by the Administrator. 

14 ‘‘(B) DIVERSION OF STATE FUNDS.—The 

15 Administrator shall not distribute funds under 

16 subparagraph (A)(iii) of subsection (f)(1) to 

17 any State that has diverted funds from a State 

18 fund or State assurance program for purposes 

19 other than those related to the regulation of un20 derground storage tanks covered by this sub21 title, with the exception of those transfers that 

22 had been completed earlier than the date of en23 actment of this subsection. 
593

•HR 1640 IH 

1 ‘‘(C) REVISIONS TO PROCESS.—The Ad2 ministrator may revise the allocation process re3 ferred to in subparagraph (A) after—

4 ‘‘(i) consulting with State agencies re5 sponsible for overseeing corrective action 

6 for releases from underground storage 

7 tanks; and 

8 ‘‘(ii) taking into consideration, at a 

9 minimum, each of the following: 

10 ‘‘(I) The number of confirmed re11 leases from federally regulated leaking 

12 underground storage tanks in the 

13 States. 

14 ‘‘(II) The number of federally 

15 regulated underground storage tanks 

16 in the States. 

17 ‘‘(III) The performance of the 

18 States in implementing and enforcing 

19 the program. 

20 ‘‘(IV) The financial needs of the 

21 States. 

22 ‘‘(V) The ability of the States to 

23 use the funds referred to in subpara24 graph (A) in any year. 
594

•HR 1640 IH 

1 ‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.—

2 Distributions from the Trust Fund under this sub3 section shall be made directly to a State agency 

4 that—

5 ‘‘(A) enters into a cooperative agreement 

6 referred to in paragraph (2)(A); or 

7 ‘‘(B) is enforcing a State program ap8 proved under this section.’’. 

9 (b) WITHDRAWAL OF APPROVAL OF STATE

10 FUNDS.—Section 9004(c) of the Solid Waste Disposal Act 

11 (42 U.S.C. 6991c(c)) is amended by inserting the fol12 lowing new paragraph at the end thereof: 

13 ‘‘(6) WITHDRAWAL OF APPROVAL.—After an 

14 opportunity for good faith, collaborative efforts to 

15 correct financial deficiencies with a State fund, the 

16 Administrator may withdraw approval of any State 

17 fund or State assurance program to be used as a fi18 nancial responsibility mechanism without with19 drawing approval of a State underground storage 

20 tank program under section 9004(a).’’. 

21 (c) ABILITY TO PAY.—Section 9003(h)(6) of the 

22 Solid Waste Disposal Act (42 U.S.C. 6591a(h)(6)) is 

23 amended by adding the following new subparagraph at the 

24 end thereof: 
595

•HR 1640 IH 

1 ‘‘(E) INABILITY OR LIMITED ABILITY TO

2 PAY.—

3 ‘‘(i) IN GENERAL.—In determining 

4 the level of recovery effort, or amount that 

5 should be recovered, the Administrator (or 

6 the State pursuant to paragraph (7)) shall 

7 consider the owner or operator’s ability to 

8 pay. An inability or limited ability to pay 

9 corrective action costs must be dem10 onstrated to the Administrator (or the 

11 State pursuant to paragraph (7)) by the 

12 owner or operator. 

13 ‘‘(ii) CONSIDERATIONS.—In deter14 mining whether or not a demonstration is 

15 made under clause (i), the Administrator 

16 (or the State pursuant to paragraph (7)) 

17 shall take into consideration the ability of 

18 the owner or operator to pay corrective ac19 tion costs and still maintain its basic busi20 ness operations, including consideration of 

21 the overall financial condition of the owner 

22 or operator and demonstrable constraints 

23 on the ability of the owner or operator to 

24 raise revenues. 
596

•HR 1640 IH 

1 ‘‘(iii) INFORMATION.—An owner or 

2 operator requesting consideration under 

3 this subparagraph shall promptly provide 

4 the Administrator (or the State pursuant 

5 to paragraph (7)) with all relevant infor6 mation needed to determine the ability of 

7 the owner or operator to pay corrective ac8 tion costs. 

9 ‘‘(iv) ALTERNATIVE PAYMENT METH10 ODS.—The Administrator (or the State 

11 pursuant to paragraph (7)) shall consider 

12 alternative payment methods as may be 

13 necessary or appropriate if the Adminis14 trator (or the State pursuant to paragraph 

15 (7)) determines that an owner or operator 

16 cannot pay all or a portion of the costs in 

17 a lump sum payment. 

18 ‘‘(v) MISREPRESENTATION.—If an 

19 owner or operator provides false informa20 tion or otherwise misrepresents their finan21 cial situation under clause (ii), the Admin22 istrator (or the State pursuant to para23 graph (7)) shall seek full recovery of the 

24 costs of all such actions pursuant to the 

25 provisions of subparagraph (A) without 
597

•HR 1640 IH 

1 consideration of the factors in subpara2 graph (B).’’. 

3 SEC. 1523. INSPECTION OF UNDERGROUND STORAGE 

4 TANKS. 

5 (a) INSPECTION REQUIREMENTS.—Section 9005 of 

6 the Solid Waste Disposal Act (42 U.S.C. 6991d) is amend7 ed by inserting the following new subsection at the end 

8 thereof: 

9 ‘‘(c) INSPECTION REQUIREMENTS.—

10 ‘‘(1) UNINSPECTED TANKS.—In the case of un11 derground storage tanks regulated under this sub12 title that have not undergone an inspection since De13 cember 22, 1998, not later than 2 years after the 

14 date of enactment of this subsection, the Adminis15 trator or a State that receives funding under this 

16 subtitle, as appropriate, shall conduct on-site inspec17 tions of all such tanks to determine compliance with 

18 this subtitle and the regulations under this subtitle 

19 (40 C.F.R. 280) or a requirement or standard of a 

20 State program developed under section 9004. 

21 ‘‘(2) PERIODIC INSPECTIONS.—After completion 

22 of all inspections required under paragraph (1), the 

23 Administrator or a State that receives funding under 

24 this subtitle, as appropriate, shall conduct on-site in25 spections of each underground storage tank regu-
598

•HR 1640 IH 

1 lated under this subtitle at least once every 3 years 

2 to determine compliance with this subtitle and the 

3 regulations under this subtitle (40 C.F.R. 280) or a 

4 requirement or standard of a State program devel5 oped under section 9004. The Administrator may ex6 tend for up to one additional year the first 3-year 

7 inspection interval under this paragraph if the State 

8 demonstrates that it has insufficient resources to 

9 complete all such inspections within the first 3-year 

10 period. 

11 ‘‘(3) INSPECTION AUTHORITY.—Nothing in this 

12 section shall be construed to diminish the Adminis13 trator’s or a State’s authorities under section 

14 9005(a).’’. 

15 (b) STUDY OF ALTERNATIVE INSPECTION PRO16 GRAMS.—The Administrator of the Environmental Protec17 tion Agency, in coordination with a State, shall gather in18 formation on compliance assurance programs that could 

19 serve as an alternative to the inspection programs under 

20 section 9005(c) of the Solid Waste Disposal Act (42 

21 U.S.C. 6991d(c)) and shall, within 4 years after the date 

22 of enactment of this Act, submit a report to the Congress 

23 containing the results of such study. 
599

•HR 1640 IH 

1 SEC. 1524. OPERATOR TRAINING. 

2 (a) IN GENERAL.—Section 9010 of the Solid Waste 

3 Disposal Act (42 U.S.C. 6991i) is amended to read as fol4 lows: 

5 ‘‘SEC. 9010. OPERATOR TRAINING. 

6 ‘‘(a) GUIDELINES.—

7 ‘‘(1) IN GENERAL.—Not later than 2 years 

8 after the date of enactment of the Underground 

9 Storage Tank Compliance Act of 2005, in consulta10 tion and cooperation with States and after public no11 tice and opportunity for comment, the Administrator 

12 shall publish guidelines that specify training require13 ments for—

14 ‘‘(A) persons having primary responsibility 

15 for on-site operation and maintenance of under16 ground storage tank systems; 

17 ‘‘(B) persons having daily on-site responsi18 bility for the operation and maintenance of un19 derground storage tanks systems; and 

20 ‘‘(C) daily, on-site employees having pri21 mary responsibility for addressing emergencies 

22 presented by a spill or release from an under23 ground storage tank system. 

24 ‘‘(2) CONSIDERATIONS.—The guidelines de25 scribed in paragraph (1) shall take into account—
600

•HR 1640 IH 

1 ‘‘(A) State training programs in existence 

2 as of the date of publication of the guidelines; 

3 ‘‘(B) training programs that are being em4 ployed by tank owners and tank operators as of 

5 the date of enactment of the Underground Stor6 age Tank Compliance Act of 2005; 

7 ‘‘(C) the high turnover rate of tank opera8 tors and other personnel; 

9 ‘‘(D) the frequency of improvement in un10 derground storage tank equipment technology; 

11 ‘‘(E) the nature of the businesses in which 

12 the tank operators are engaged; 

13 ‘‘(F) the substantial differences in the 

14 scope and length of training needed for the dif15 ferent classes of persons described in subpara16 graphs (A), (B), and (C) of paragraph (1); and 

17 ‘‘(G) such other factors as the Adminis18 trator determines to be necessary to carry out 

19 this section. 

20 ‘‘(b) STATE PROGRAMS.—

21 ‘‘(1) IN GENERAL.—Not later than 2 years 

22 after the date on which the Administrator publishes 

23 the guidelines under subsection (a)(1), each State 

24 that receives funding under this subtitle shall de25 velop State-specific training requirements that are 
601

•HR 1640 IH 

1 consistent with the guidelines developed under sub2 section (a)(1). 

3 ‘‘(2) REQUIREMENTS.—State requirements de4 scribed in paragraph (1) shall—

5 ‘‘(A) be consistent with subsection (a); 

6 ‘‘(B) be developed in cooperation with tank 

7 owners and tank operators; 

8 ‘‘(C) take into consideration training pro9 grams implemented by tank owners and tank 

10 operators as of the date of enactment of this 

11 section; and 

12 ‘‘(D) be appropriately communicated to 

13 tank owners and operators. 

14 ‘‘(3) FINANCIAL INCENTIVE.—The Adminis15 trator may award to a State that develops and im16 plements requirements described in paragraph (1), 

17 in addition to any funds that the State is entitled to 

18 receive under this subtitle, not more than $200,000, 

19 to be used to carry out the requirements. 

20 ‘‘(c) TRAINING.—All persons that are subject to the 

21 operator training requirements of subsection (a) shall—

22 ‘‘(1) meet the training requirements developed 

23 under subsection (b); and 

24 ‘‘(2) repeat the applicable requirements devel25 oped under subsection (b), if the tank for which they 
602

•HR 1640 IH 

1 have primary daily on-site management responsibil2 ities is determined to be out of compliance with—

3 ‘‘(A) a requirement or standard promul4 gated by the Administrator under section 9003; 

5 or 

6 ‘‘(B) a requirement or standard of a State 

7 program approved under section 9004.’’. 

8 (b) STATE PROGRAM REQUIREMENT.—Section 

9 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 

10 6991c(a)) is amended by striking ‘‘and’’ at the end of 

11 paragraph (7), by striking the period at the end of para12 graph (8) and inserting ‘‘; and’’, and by adding the fol13 lowing new paragraph at the end thereof: 

14 ‘‘(9) State-specific training requirements as re15 quired by section 9010.’’. 

16 (c) ENFORCEMENT.—Section 9006(d)(2) of such Act 

17 (42 U.S.C. 6991e) is amended as follows: 

18 (1) By striking ‘‘or’’ at the end of subpara19 graph (B). 

20 (2) By adding the following new subparagraph 

21 after subparagraph (C): 

22 ‘‘(D) the training requirements established by 

23 States pursuant to section 9010 (relating to oper24 ator training); or’’. 
603

•HR 1640 IH 

1 (d) TABLE OF CONTENTS.—The item relating to sec2 tion 9010 in table of contents for the Solid Waste Disposal 

3 Act is amended to read as follows:

‘‘Sec. 9010. Operator training.’’.

4 SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDI5 TIVES. 

6 Section 9003(h) of the Solid Waste Disposal Act (42 

7 U.S.C. 6991b(h)) is amended as follows: 

8 (1) In paragraph (7)(A)—

9 (A) by striking ‘‘paragraphs (1) and (2) of 

10 this subsection’’ and inserting ‘‘paragraphs (1), 

11 (2), and (12)’’ ; and 

12 (B) by striking ‘‘and including the authori13 ties of paragraphs (4), (6), and (8) of this sub14 section’’ and inserting ‘‘and the authority under 

15 sections 9011 and 9012 and paragraphs (4), 

16 (6), and (8),’’. 

17 (2) By adding at the end the following: 

18 ‘‘(12) REMEDIATION OF OXYGENATED FUEL

19 CONTAMINATION.—

20 ‘‘(A) IN GENERAL.—The Administrator 

21 and the States may use funds made available 

22 under section 9014(2)(B) to carry out correc23 tive actions with respect to a release of a fuel 

24 containing an oxygenated fuel additive that pre-
604

•HR 1640 IH 

1 sents a threat to human health or welfare or 

2 the environment. 

3 ‘‘(B) APPLICABLE AUTHORITY.—The Ad4 ministrator or a State shall carry out subpara5 graph (A) in accordance with paragraph (2), 

6 and in the case of a State, in accordance with 

7 a cooperative agreement entered into by the Ad8 ministrator and the State under paragraph 

9 (7).’’. 

10 SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND EN11 FORCEMENT. 

12 (a) RELEASE PREVENTION AND COMPLIANCE.—Sub13 title I of the Solid Waste Disposal Act (42 U.S.C. 6991 

14 et seq.) is amended by adding at the end the following: 

15 ‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND 

16 COMPLIANCE. 

17 ‘‘Funds made available under section 9014(2)(D) 

18 from the Trust Fund may be used to conduct inspections, 

19 issue orders, or bring actions under this subtitle—

20 ‘‘(1) by a State, in accordance with a grant or 

21 cooperative agreement with the Administrator, of 

22 State regulations pertaining to underground storage 

23 tanks regulated under this subtitle; and 
605

•HR 1640 IH 

1 ‘‘(2) by the Administrator, for tanks regulated 

2 under this subtitle (including under a State program 

3 approved under section 9004).’’. 

4 (b) GOVERNMENT-OWNED TANKS.—Section 9003 of 

5 the Solid Waste Disposal Act (42 U.S.C. 6991b) is amend6 ed by adding at the end the following: 

7 ‘‘(i) GOVERNMENT-OWNED TANKS.—

8 ‘‘(1) STATE COMPLIANCE REPORT.—(A) Not 

9 later than 2 years after the date of enactment of 

10 this subsection, each State that receives funding 

11 under this subtitle shall submit to the Administrator 

12 a State compliance report that—

13 ‘‘(i) lists the location and owner of each 

14 underground storage tank described in subpara15 graph (B) in the State that, as of the date of 

16 submission of the report, is not in compliance 

17 with section 9003; and 

18 ‘‘(ii) specifies the date of the last inspec19 tion and describes the actions that have been 

20 and will be taken to ensure compliance of the 

21 underground storage tank listed under clause 

22 (i) with this subtitle. 

23 ‘‘(B) An underground storage tank described in 

24 this subparagraph is an underground storage tank 

25 that is—
606

•HR 1640 IH 

1 ‘‘(i) regulated under this subtitle; and 

2 ‘‘(ii) owned or operated by the Federal, 

3 State, or local government. 

4 ‘‘(C) The Administrator shall make each report, 

5 received under subparagraph (A), available to the 

6 public through an appropriate media. 

7 ‘‘(2) FINANCIAL INCENTIVE.—The Adminis8 trator may award to a State that develops a report 

9 described in paragraph (1), in addition to any other 

10 funds that the State is entitled to receive under this 

11 subtitle, not more than $50,000, to be used to carry 

12 out the report. 

13 ‘‘(3) NOT A SAFE HARBOR.—This subsection 

14 does not relieve any person from any obligation or 

15 requirement under this subtitle.’’. 

16 (c) PUBLIC RECORD.—Section 9002 of the Solid 

17 Waste Disposal Act (42 U.S.C. 6991a) is amended by add18 ing at the end the following: 

19 ‘‘(d) PUBLIC RECORD.—

20 ‘‘(1) IN GENERAL.—The Administrator shall re21 quire each State that receives Federal funds to carry 

22 out this subtitle to maintain, update at least annu23 ally, and make available to the public, in such man24 ner and form as the Administrator shall prescribe 
607

•HR 1640 IH 

1 (after consultation with States), a record of under2 ground storage tanks regulated under this subtitle. 

3 ‘‘(2) CONSIDERATIONS.—To the maximum ex4 tent practicable, the public record of a State, respec5 tively, shall include, for each year—

6 ‘‘(A) the number, sources, and causes of 

7 underground storage tank releases in the State; 

8 ‘‘(B) the record of compliance by under9 ground storage tanks in the State with—

10 ‘‘(i) this subtitle; or 

11 ‘‘(ii) an applicable State program ap12 proved under section 9004; and 

13 ‘‘(C) data on the number of underground 

14 storage tank equipment failures in the State.’’. 

15 (d) INCENTIVE FOR PERFORMANCE.—Section 9006 

16 of the Solid Waste Disposal Act (42 U.S.C. 6991e) is 

17 amended by adding at the end the following: 

18 ‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of the 

19 following may be taken into account in determining the 

20 terms of a civil penalty under subsection (d): 

21 ‘‘(1) The compliance history of an owner or op22 erator in accordance with this subtitle or a program 

23 approved under section 9004. 

24 ‘‘(2) Any other factor the Administrator con25 siders appropriate.’’. 
608

•HR 1640 IH 

1 (e) TABLE OF CONTENTS.—The table of contents for 

2 such subtitle I is amended by adding the following new 

3 item at the end thereof:

‘‘Sec. 9011. Use of funds for release prevention and compliance.’’.

4 SEC. 1527. DELIVERY PROHIBITION. 

5 (a) IN GENERAL.—Subtitle I of the Solid Waste Dis6 posal Act (42 U.S.C. 6991 et seq.) is amended by adding 

7 at the end the following: 

8 ‘‘SEC. 9012. DELIVERY PROHIBITION. 

9 ‘‘(a) REQUIREMENTS.—

10 ‘‘(1) PROHIBITION OF DELIVERY OR DE11 POSIT.—Beginning 2 years after the date of enact12 ment of this section, it shall be unlawful to deliver 

13 to, deposit into, or accept a regulated substance into 

14 an underground storage tank at a facility which has 

15 been identified by the Administrator or a State im16 plementing agency to be ineligible for fuel delivery or 

17 deposit. 

18 ‘‘(2) GUIDANCE.—Within 1 year after the date 

19 of enactment of this section, the Administrator and 

20 States that receive funding under this subtitle shall, 

21 in consultation with the underground storage tank 

22 owner and product delivery industries, for territory 

23 for which they are the primary implementing agen24 cies, publish guidelines detailing the specific proc25 esses and procedures they will use to implement the 
609

•HR 1640 IH 

1 provisions of this section. The processes and proce2 dures include, at a minimum—

3 ‘‘(A) the criteria for determining which un4 derground storage tank facilities are ineligible 

5 for delivery or deposit; 

6 ‘‘(B) the mechanisms for identifying which 

7 facilities are ineligible for delivery or deposit to 

8 the underground storage tank owning and fuel 

9 delivery industries; 

10 ‘‘(C) the process for reclassifying ineligible 

11 facilities as eligible for delivery or deposit; and 

12 ‘‘(D) a delineation of, or a process for de13 termining, the specified geographic areas sub14 ject to paragraph (4). 

15 ‘‘(3) DELIVERY PROHIBITION NOTICE.—

16 ‘‘(A) ROSTER.—The Administrator and 

17 each State implementing agency that receives 

18 funding under this subtitle shall establish with19 in 24 months after the date of enactment of 

20 this section a Delivery Prohibition Roster list21 ing underground storage tanks under the Ad22 ministrator’s or the State’s jurisdiction that are 

23 determined to be ineligible for delivery or de24 posit pursuant to paragraph (2). 
610

•HR 1640 IH 

1 ‘‘(B) NOTIFICATION.—The Administrator 

2 and each State, as appropriate, shall make 

3 readily known, to underground storage tank 

4 owners and operators and to product delivery 

5 industries, the underground storage tanks listed 

6 on a Delivery Prohibition Roster by: 

7 ‘‘(i) posting such Rosters, including 

8 the physical location and street address of 

9 each listed underground storage tank, on 

10 official web sites and, if the Administrator 

11 or the State so chooses, other electronic 

12 means; 

13 ‘‘(ii) updating these Rosters periodi14 cally; and 

15 ‘‘(iii) installing a tamper-proof tag, 

16 seal, or other device blocking the fill pipes 

17 of such underground storage tanks to pre18 vent the delivery of product into such un19 derground storage tanks. 

20 ‘‘(C) ROSTER UPDATES.—The Adminis21 trator and the State shall update the Delivery 

22 Prohibition Rosters as appropriate, but not less 

23 than once a month on the first day of the 

24 month. 

25 ‘‘(D) TAMPERING WITH DEVICE.—
611

•HR 1640 IH 

1 ‘‘(i) PROHIBITION.—It shall be unlaw2 ful for any person, other than an author3 ized representative of the Administrator or 

4 a State, as appropriate, to remove, tamper 

5 with, destroy, or damage a device installed 

6 by the Administrator or a State, as appro7 priate, under subparagraph (B)(iii) of this 

8 subsection. 

9 ‘‘(ii) CIVIL PENALTIES.—Any person 

10 violating clause (i) of this subparagraph 

11 shall be subject to a civil penalty not to ex12 ceed $10,000 for each violation. 

13 ‘‘(4) LIMITATION.—

14 ‘‘(A) RURAL AND REMOTE AREAS.—Sub15 ject to subparagraph (B), the Administrator or 

16 a State shall not include an underground stor17 age tank on a Delivery Prohibition Roster 

18 under paragraph (3) if an urgent threat to pub19 lic health, as determined by the Administrator, 

20 does not exist and if such a delivery prohibition 

21 would jeopardize the availability of, or access 

22 to, fuel in any rural and remote areas. 

23 ‘‘(B) APPLICABILITY OF LIMITATION.—

24 The limitation under subparagraph (A) shall 

25 apply only during the 180-day period following 
612

•HR 1640 IH 

1 the date of a determination by the Adminis2 trator or the appropriate State that exercising 

3 the authority of paragraph (3) is limited by 

4 subparagraph (A). 

5 ‘‘(b) EFFECT ON STATE AUTHORITY.—Nothing in 

6 this section shall affect the authority of a State to prohibit 

7 the delivery of a regulated substance to an underground 

8 storage tank. 

9 ‘‘(c) DEFENSE TO VIOLATION.—A person shall not 

10 be in violation of subsection (a)(1) if the underground 

11 storage tank into which a regulated substance is delivered 

12 is not listed on the Administrator’s or the appropriate 

13 State’s Prohibited Delivery Roster 7 calendar days prior 

14 to the delivery being made.’’. 

15 (b) ENFORCEMENT.—Section 9006(d)(2) of such Act 

16 (42 U.S.C. 6991e(d)(2)) is amended as follows: 

17 (1) By adding the following new subparagraph 

18 after subparagraph (D): 

19 ‘‘(E) the delivery prohibition requirement estab20 lished by section 9012,’’. 

21 (2) By adding the following new sentence at the 

22 end thereof: ‘‘Any person making or accepting a de23 livery or deposit of a regulated substance to an un24 derground storage tank at an ineligible facility in 
613

•HR 1640 IH 

1 violation of section 9012 shall also be subject to the 

2 same civil penalty for each day of such violation.’’. 

3 (c) TABLE OF CONTENTS.—The table of contents for 

4 such subtitle I is amended by adding the following new 

5 item at the end thereof:

‘‘Sec. 9012. Delivery prohibition.’’.

6 SEC. 1528. FEDERAL FACILITIES. 

7 Section 9007 of the Solid Waste Disposal Act (42 

8 U.S.C. 6991f) is amended to read as follows: 

9 ‘‘SEC. 9007. FEDERAL FACILITIES. 

10 ‘‘(a) IN GENERAL.—Each department, agency, and 

11 instrumentality of the executive, legislative, and judicial 

12 branches of the Federal Government (1) having jurisdic13 tion over any underground storage tank or underground 

14 storage tank system, or (2) engaged in any activity result15 ing, or which may result, in the installation, operation, 

16 management, or closure of any underground storage tank, 

17 release response activities related thereto, or in the deliv18 ery, acceptance, or deposit of any regulated substance to 

19 an underground storage tank or underground storage tank 

20 system shall be subject to, and comply with, all Federal, 

21 State, interstate, and local requirements, both substantive 

22 and procedural (including any requirement for permits or 

23 reporting or any provisions for injunctive relief and such 

24 sanctions as may be imposed by a court to enforce such 

25 relief), respecting underground storage tanks in the same 
614

•HR 1640 IH 

1 manner, and to the same extent, as any person is subject 

2 to such requirements, including the payment of reasonable 

3 service charges. The Federal, State, interstate, and local 

4 substantive and procedural requirements referred to in 

5 this subsection include, but are not limited to, all adminis6 trative orders and all civil and administrative penalties 

7 and fines, regardless of whether such penalties or fines 

8 are punitive or coercive in nature or are imposed for iso9 lated, intermittent, or continuing violations. The United 

10 States hereby expressly waives any immunity otherwise 

11 applicable to the United States with respect to any such 

12 substantive or procedural requirement (including, but not 

13 limited to, any injunctive relief, administrative order or 

14 civil or administrative penalty or fine referred to in the 

15 preceding sentence, or reasonable service charge). The rea16 sonable service charges referred to in this subsection in17 clude, but are not limited to, fees or charges assessed in 

18 connection with the processing and issuance of permits, 

19 renewal of permits, amendments to permits, review of 

20 plans, studies, and other documents, and inspection and 

21 monitoring of facilities, as well as any other nondiscrim22 inatory charges that are assessed in connection with a 

23 Federal, State, interstate, or local underground storage 

24 tank regulatory program. Neither the United States, nor 

25 any agent, employee, or officer thereof, shall be immune 
615

•HR 1640 IH 

1 or exempt from any process or sanction of any State or 

2 Federal Court with respect to the enforcement of any such 

3 injunctive relief. No agent, employee, or officer of the 

4 United States shall be personally liable for any civil pen5 alty under any Federal, State, interstate, or local law con6 cerning underground storage tanks with respect to any act 

7 or omission within the scope of the official duties of the 

8 agent, employee, or officer. An agent, employee, or officer 

9 of the United States shall be subject to any criminal sanc10 tion (including, but not limited to, any fine or imprison11 ment) under any Federal or State law concerning under12 ground storage tanks, but no department, agency, or in13 strumentality of the executive, legislative, or judicial 

14 branch of the Federal Government shall be subject to any 

15 such sanction. The President may exempt any under16 ground storage tank of any department, agency, or instru17 mentality in the executive branch from compliance with 

18 such a requirement if he determines it to be in the para19 mount interest of the United States to do so. No such 

20 exemption shall be granted due to lack of appropriation 

21 unless the President shall have specifically requested such 

22 appropriation as a part of the budgetary process and the 

23 Congress shall have failed to make available such re24 quested appropriation. Any exemption shall be for a period 

25 not in excess of one year, but additional exemptions may 
616

•HR 1640 IH 

1 be granted for periods not to exceed one year upon the 

2 President’s making a new determination. The President 

3 shall report each January to the Congress all exemptions 

4 from the requirements of this section granted during the 

5 preceding calendar year, together with his reason for 

6 granting each such exemption. 

7 ‘‘(b) REVIEW OF AND REPORT ON FEDERAL UNDER8 GROUND STORAGE TANKS.—

9 ‘‘(1) REVIEW.—Not later than 12 months after 

10 the date of enactment of the Underground Storage 

11 Tank Compliance Act of 2005, each Federal agency 

12 that owns or operates 1 or more underground stor13 age tanks, or that manages land on which 1 or more 

14 underground storage tanks are located, shall submit 

15 to the Administrator, the Committee on Energy and 

16 Commerce of the United States House of Represent17 atives, and the Committee on the Environment and 

18 Public Works of the United States Senate a compli19 ance strategy report that—

20 ‘‘(A) lists the location and owner of each 

21 underground storage tank described in this 

22 paragraph; 

23 ‘‘(B) lists all tanks that are not in compli24 ance with this subtitle that are owned or oper25 ated by the Federal agency; 
617

•HR 1640 IH 

1 ‘‘(C) specifies the date of the last inspec2 tion by a State or Federal inspector of each un3 derground storage tank owned or operated by 

4 the agency; 

5 ‘‘(D) lists each violation of this subtitle re6 specting any underground storage tank owned 

7 or operated by the agency; 

8 ‘‘(E) describes the operator training that 

9 has been provided to the operator and other 

10 persons having primary daily on-site manage11 ment responsibility for the operation and main12 tenance of underground storage tanks owned or 

13 operated by the agency; and 

14 ‘‘(F) describes the actions that have been 

15 and will be taken to ensure compliance for each 

16 underground storage tank identified under sub17 paragraph (B). 

18 ‘‘(2) NOT A SAFE HARBOR.—This subsection 

19 does not relieve any person from any obligation or 

20 requirement under this subtitle.’’. 

21 SEC. 1529. TANKS ON TRIBAL LANDS. 

22 (a) IN GENERAL.—Subtitle I of the Solid Waste Dis23 posal Act (42 U.S.C. 6991 et seq.) is amended by adding 

24 the following at the end thereof: 
618

•HR 1640 IH 

1 ‘‘SEC. 9013. TANKS ON TRIBAL LANDS. 

2 ‘‘(a) STRATEGY.—The Administrator, in coordination 

3 with Indian tribes, shall, not later than 1 year after the 

4 date of enactment of this section, develop and implement 

5 a strategy—

6 ‘‘(1) giving priority to releases that present the 

7 greatest threat to human health or the environment, 

8 to take necessary corrective action in response to re9 leases from leaking underground storage tanks lo10 cated wholly within the boundaries of—

11 ‘‘(A) an Indian reservation; or 

12 ‘‘(B) any other area under the jurisdiction 

13 of an Indian tribe; and 

14 ‘‘(2) to implement and enforce requirements 

15 concerning underground storage tanks located wholly 

16 within the boundaries of—

17 ‘‘(A) an Indian reservation; or 

18 ‘‘(B) any other area under the jurisdiction 

19 of an Indian tribe. 

20 ‘‘(b) REPORT.—Not later than 2 years after the date 

21 of enactment of this section, the Administrator shall sub22 mit to Congress a report that summarizes the status of 

23 implementation and enforcement of this subtitle in areas 

24 located wholly within—

25 ‘‘(1) the boundaries of Indian reservations; and 
619

•HR 1640 IH 

1 ‘‘(2) any other areas under the jurisdiction of 

2 an Indian tribe. 

3 The Administrator shall make the report under this sub4 section available to the public. 

5 ‘‘(c) NOT A SAFE HARBOR.—This section does not 

6 relieve any person from any obligation or requirement 

7 under this subtitle. 

8 ‘‘(d) STATE AUTHORITY.—Nothing in this section 

9 applies to any underground storage tank that is located 

10 in an area under the jurisdiction of a State, or that is 

11 subject to regulation by a State, as of the date of enact12 ment of this section.’’. 

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

14 such subtitle I is amended by adding the following new 

15 item at the end thereof:

‘‘Sec. 9013. Tanks on Tribal lands.’’.

16 SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUND17 WATER. 

18 (a) IN GENERAL.—Section 9003 of the Solid Waste 

19 Disposal Act (42 U.S.C. 6991b) is amended by adding the 

20 following new subsection at the end: 

21 ‘‘(i) ADDITIONAL MEASURES TO PROTECT GROUND22 WATER FROM CONTAMINATION.—The Administrator shall 

23 require each State that receives funding under this sub24 title to require one of the following: 
620

•HR 1640 IH 

1 ‘‘(1) TANK AND PIPING SECONDARY CONTAIN2 MENT.—(A) Each new underground storage tank, or 

3 piping connected to any such new tank, installed 

4 after the effective date of this subsection, or any ex5 isting underground storage tank, or existing piping 

6 connected to such existing tank, that is replaced 

7 after the effective date of this subsection, shall be 

8 secondarily contained and monitored for leaks if the 

9 new or replaced underground storage tank or piping 

10 is within 1,000 feet of any existing community water 

11 system or any existing potable drinking water well. 

12 ‘‘(B) In the case of a new underground storage 

13 tank system consisting of one or more underground 

14 storage tanks and connected by piping, subpara15 graph (A) shall apply to all underground storage 

16 tanks and connected pipes comprising such system. 

17 ‘‘(C) In the case of a replacement of an existing 

18 underground storage tank or existing piping con19 nected to the underground storage tank, subpara20 graph (A) shall apply only to the specific under21 ground storage tank or piping being replaced, not to 

22 other underground storage tanks and connected 

23 pipes comprising such system. 

24 ‘‘(D) Each installation of a new motor fuel dis25 penser system, after the effective date of this sub-
621

•HR 1640 IH 

1 section, shall include under-dispenser spill contain2 ment if the new dispenser is within 1,000 feet of any 

3 existing community water system or any existing po4 table drinking water well. 

5 ‘‘(E) This paragraph shall not apply to repairs 

6 to an underground storage tank, piping, or dispenser 

7 that are meant to restore a tank, pipe, or dispenser 

8 to operating condition 

9 ‘‘(F) As used in this subsection: 

10 ‘‘(i) The term ‘secondarily contained’ 

11 means a release detection and prevention sys12 tem that meets the requirements of 40 CFR 

13 280.43(g), but shall not include under-dispenser 

14 spill containment or control systems. 

15 ‘‘(ii) The term ‘underground storage tank’ 

16 has the meaning given to it in section 9001, ex17 cept that such term does not include tank com18 binations or more than a single underground 

19 pipe connected to a tank. 

20 ‘‘(iii) The term ‘installation of a new motor 

21 fuel dispenser system’ means the installation of 

22 a new motor fuel dispenser and the equipment 

23 necessary to connect the dispenser to the under24 ground storage tank system, but does not mean 

25 the installation of a motor fuel dispenser in-
622

•HR 1640 IH 

1 stalled separately from the equipment need to 

2 connect the dispenser to the underground stor3 age tank system. 

4 ‘‘(G) The Administrator may issue regulations 

5 or guidelines implementing the requirements of this 

6 subsection. 

7 ‘‘(2) EVIDENCE OF FINANCIAL RESPONSIBILITY

8 AND CERTIFICATION.—

9 ‘‘(A) MANUFACTURER AND INSTALLER FI10 NANCIAL RESPONSIBILITY.—A person that 

11 manufactures an underground storage tank or 

12 piping for an underground storage tank system 

13 or that installs an underground storage tank 

14 system is required to maintain evidence of fi15 nancial responsibility under section 9003(d) in 

16 order to provide for the costs of corrective ac17 tions directly related to releases caused by im18 proper manufacture or installation unless the 

19 person can demonstrate themselves to be al20 ready covered as an owner or operator of an 

21 underground storage tank under section 9003. 

22 ‘‘(B) INSTALLER CERTIFICATION.—The 

23 Administrator and each State that receives 

24 funding under this subtitle, as appropriate, 
623

•HR 1640 IH 

1 shall require that a person that installs an un2 derground storage tank system is—

3 ‘‘(i) certified or licensed by the tank 

4 and piping manufacturer; 

5 ‘‘(ii) certified or licensed by the Ad6 ministrator or a State, as appropriate; 

7 ‘‘(iii) has their underground storage 

8 tank system installation certified by a reg9 istered professional engineer with edu10 cation and experience in underground stor11 age tank system installation; 

12 ‘‘(iv) has had their installation of the 

13 underground storage tank inspected and 

14 approved by the Administrator or the 

15 State, as appropriate; 

16 ‘‘(v) compliant with a code of practice 

17 developed by a nationally recognized asso18 ciation of independent testing laboratory 

19 and in accordance with the manufacturers 

20 instructions; or 

21 ‘‘(vi) compliant with another method 

22 that is determined by the Administrator or 

23 a State, as appropriate, to be no less pro24 tective of human health and the environ25 ment.’’. 
624

•HR 1640 IH 

1 (b) EFFECTIVE DATE.—This subsection shall take 

2 effect 18 months after the date of enactment of this sub3 section 

4 (c) PROMULGATION OF REGULATIONS OR GUIDE5 LINES.—The Administrator shall issue regulations or 

6 guidelines implementing the requirements of this sub7 section, including guidance to differentiate between the 

8 terms ‘‘repair’’ and ‘‘replace’’ for the purposes of section 

9 9003(i)(1) of the Solid Waste Disposal Act. 

10 (d) PENALTIES.—Section 9006(d)(2) of such Act (42 

11 U.S.C. 6991e(d)(2)) is amended as follows: 

12 (1) By striking ‘‘or’’ at the end of subpara13 graph (B). 

14 (2) By inserting ‘‘; or’’ at the end of subpara15 graph (C). 

16 (3) By adding the following new subparagraph 

17 after subparagraph (C): 

18 ‘‘(D) the requirements establishd in section 

19 9003(i),’’. 

20 SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. 

21 (a) IN GENERAL.—Subtitle I of the Solid Waste Dis22 posal Act (42 U.S.C. 6991 et seq.) is amended by adding 

23 at the end the following: 
625

•HR 1640 IH 

1 ‘‘SEC. 9014. AUTHORIZATION OF APPROPRIATIONS. 

2 ‘‘There are authorized to be appropriated to the Ad3 ministrator the following amounts: 

4 ‘‘(1) To carry out subtitle I (except sections 

5 9003(h), 9005(c), 9011 and 9012) $50,000,000 for 

6 each of fiscal years 2005 through 2009. 

7 ‘‘(2) From the Trust Fund, notwithstanding 

8 section 9508(c)(1) of the Internal Revenue Code of 

9 1986: 

10 ‘‘(A) to carry out section 9003(h) (except 

11 section 9003(h)(12)) $200,000,000 for each of 

12 fiscal years 2005 through 2009; 

13 ‘‘(B) to carry out section 9003(h)(12), 

14 $200,000,000 for each of fiscal years 2005 

15 through 2009; 

16 ‘‘(C) to carry out sections 9004(f) and 

17 9005(c) $100,000,000 for each of fiscal years 

18 2005 through 2009; and 

19 ‘‘(D) to carry out sections 9011 and 9012 

20 $55,000,000 for each of fiscal years 2005 

21 through 2009.’’. 

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

23 such subtitle I is amended by adding the following new 

24 item at the end thereof:

‘‘Sec. 9014. Authorization of appropriations.’’.
626

•HR 1640 IH 

1 SEC. 1532. CONFORMING AMENDMENTS. 

2 (a) IN GENERAL.—Section 9001 of the Solid Waste 

3 Disposal Act (42 U.S.C. 6991) is amended as follows: 

4 (1) By striking ‘‘For the purposes of this sub5 title—’’ and inserting ‘‘In this subtitle:’’. 

6 (2) By redesignating paragraphs (1), (2), (3), 

7 (4), (5), (6), (7), and (8) as paragraphs (10), (7), 

8 (4), (3), (8), (5), (2), and (6), respectively. 

9 (3) By inserting before paragraph (2) (as redes10 ignated by paragraph (2) of this subsection) the fol11 lowing: 

12 ‘‘(1) INDIAN TRIBE.—

13 ‘‘(A) IN GENERAL.—The term ‘Indian 

14 tribe’ means any Indian tribe, band, nation, or 

15 other organized group or community that is rec16 ognized as being eligible for special programs 

17 and services provided by the United States to 

18 Indians because of their status as Indians. 

19 ‘‘(B) INCLUSIONS.—The term ‘Indian 

20 tribe’ includes an Alaska Native village, as de21 fined in or established under the Alaska Native 

22 Claims Settlement Act (43 U.S.C. 1601 et 

23 seq.); and’’. 

24 (4) By inserting after paragraph (8) (as redes25 ignated by paragraph (2) of this subsection) the fol26 lowing: 
627

•HR 1640 IH 

1 ‘‘(9) TRUST FUND.—The term ‘Trust Fund’ 

2 means the Leaking Underground Storage Tank 

3 Trust Fund established by section 9508 of the Inter4 nal Revenue Code of 1986.’’. 

5 (b) CONFORMING AMENDMENTS.—The Solid Waste 

6 Disposal Act (42 U.S.C. 6901 and following) is amended 

7 as follows: 

8 (1) Section 9003(f) (42 U.S.C. 6991b(f)) is 

9 amended—

10 (A) in paragraph (1), by striking 

11 ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 

12 (B) in paragraphs (2) and (3), by striking 

13 ‘‘9001(2)(A)’’ each place it appears and insert14 ing ‘‘9001(7)(A)’’. 

15 (2) Section 9003(h) (42 U.S.C. 6991b(h)) is 

16 amended in paragraphs (1), (2)(C), (7)(A), and (11) 

17 by striking ‘‘Leaking Underground Storage Tank 

18 Trust Fund’’ each place it appears and inserting 

19 ‘‘Trust Fund’’. 

20 (3) Section 9009 (42 U.S.C. 6991h) is amend21 ed—

22 (A) in subsection (a), by striking 

23 ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 
628

•HR 1640 IH 

1 (B) in subsection (d), by striking ‘‘section 

2 9001(1) (A) and (B)’’ and inserting ‘‘subpara3 graphs (A) and (B) of section 9001(10)’’. 

4 SEC. 1533. TECHNICAL AMENDMENTS. 

5 The Solid Waste Disposal Act is amended as follows: 

6 (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) 

7 is amended by striking ‘‘sustances’’ and inserting 

8 ‘‘substances’’. 

9 (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) 

10 is amended by striking ‘‘subsection (c) and (d) of 

11 this section’’ and inserting ‘‘subsections (c) and 

12 (d)’’. 

13 (3) Section 9004(a) (42 U.S.C. 6991c(a)) is 

14 amended by striking ‘‘in 9001(2) (A) or (B) or 

15 both’’ and inserting ‘‘in subparagraph (A) or (B) of 

16 section 9001(7)’’. 

17 (4) Section 9005 (42 U.S.C. 6991d) is amend18 ed—

19 (A) in subsection (a), by striking ‘‘study 

20 taking’’ and inserting ‘‘study, taking’’; 

21 (B) in subsection (b)(1), by striking 

22 ‘‘relevent’’ and inserting ‘‘relevant’’; and 

23 (C) in subsection (b)(4), by striking 

24 ‘‘Evironmental’’ and inserting ‘‘Environ25 mental’’. 
629

•HR 1640 IH 

1 Subtitle C—Boutique Fuels 

2 SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE 

3 FUELS. 

4 (a) TEMPORARY WAIVERS DURING SUPPLY EMER5 GENCIES.—Section 211(c)(4)(C) of the Clean Air Act (42 

6 U.S.C. 7545(c)(4)(C)) is amended by inserting ‘‘(i)’’ after 

7 ‘‘(C)’’ and by adding the following new clauses at the end 

8 thereof: 

9 ‘‘(ii) The Administrator may temporarily waive a con10 trol or prohibition respecting the use of a fuel or fuel addi11 tive required or regulated by the Administrator pursuant 

12 to subsection (c), (h), (i), (k), or (m) of this section or 

13 prescribed in an applicable implementation plan under sec14 tion 110 approved by the Administrator under clause (i) 

15 of this subparagraph if, after consultation with, and con16 currence by, the Secretary of Energy, the Administrator 

17 determines that—

18 ‘‘(I) extreme and unusual fuel or fuel additive 

19 supply circumstances exist in a State or region of 

20 the Nation which prevent the distribution of an ade21 quate supply of the fuel or fuel additive to con22 sumers; 

23 ‘‘(II) such extreme and unusual fuel and fuel 

24 additive supply circumstances are the result of a 

25 natural disaster, an Act of God, a pipeline or refin-
630

•HR 1640 IH 

1 ery equipment failure, or another event that could 

2 not reasonably have been foreseen or prevented and 

3 not the lack of prudent planning on the part of the 

4 suppliers of the fuel or fuel additive to such State 

5 or region; and 

6 ‘‘(III) it is in the public interest to grant the 

7 waiver (for example, when a waiver is necessary to 

8 meet projected temporary shortfalls in the supply of 

9 the fuel or fuel additive in a State or region of the 

10 Nation which cannot otherwise be compensated for). 

11 ‘‘(iii) If the Administrator makes the determinations 

12 required under clause (ii), such a temporary extreme and 

13 unusual fuel and fuel additive supply circumstances waiver 

14 shall be permitted only if—

15 ‘‘(I) the waiver applies to the smallest geo16 graphic area necessary to address the extreme and 

17 unusual fuel and fuel additive supply circumstances; 

18 ‘‘(II) the waiver is effective for a period of 20 

19 calendar days or, if the Administrator determines 

20 that a shorter waiver period is adequate, for the 

21 shortest practicable time period necessary to permit 

22 the correction of the extreme and unusual fuel and 

23 fuel additive supply circumstances and to mitigate 

24 impact on air quality; 
631

•HR 1640 IH 

1 ‘‘(III) the waiver permits a transitional period, 

2 the exact duration of which shall be determined by 

3 the Administrator, after the termination of the tem4 porary waiver to permit wholesalers and retailers to 

5 blend down their wholesale and retail inventory; 

6 ‘‘(IV) the waiver applies to all persons in the 

7 motor fuel distribution system; and 

8 ‘‘(V) the Administrator has given public notice 

9 to all parties in the motor fuel distribution system, 

10 and local and State regulators, in the State or re11 gion to be covered by the waiver. 

12 The term ‘motor fuel distribution system’ as used in this 

13 clause shall be defined by the Administrator through rule14 making. 

15 ‘‘(iv) Within 180 days of the date of enactment of 

16 this clause, the Administrator shall promulgate regula17 tions to implement clauses (ii) and (iii). 

18 ‘‘(v) Nothing in this subparagraph shall—

19 ‘‘(I) limit or otherwise affect the application of 

20 any other waiver authority of the Administrator pur21 suant to this section or pursuant to a regulation 

22 promulgated pursuant to this section; and 

23 ‘‘(II) subject any State or person to an enforce24 ment action, penalties, or liability solely arising from 
632

•HR 1640 IH 

1 actions taken pursuant to the issuance of a waiver 

2 under this subparagraph.’’. 

3 (b) LIMIT ON NUMBER OF BOUTIQUE FUELS.—Sec4 tion 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

5 7545(c)(4)), as amended by subsection (a), is further 

6 amended by adding at the end the following: 

7 ‘‘(v)(I) The Administrator shall have no authority, 

8 when considering a State implementation plan or a State 

9 implementation plan revision, to approve under this para10 graph any fuel included in such plan or revision if the ef11 fect of such approval increases the total number of fuels 

12 approved under this paragraph as of September 1, 2004, 

13 in all State implementation plans. 

14 ‘‘(II) The Administrator, in consultation with the 

15 Secretary of Energy, shall determine the total number of 

16 fuels approved under this paragraph as of September 1, 

17 2004, in all State implementation plans and shall publish 

18 a list of such fuels, including the states and Petroleum 

19 Administration for Defense District in which they are 

20 used, in the Federal Register for public review and com21 ment no later than 90 days after enactment. 

22 ‘‘(III) The Administrator shall remove a fuel from the 

23 list published under subclause (II) if a fuel ceases to be 

24 included in a State implementation plan or if a fuel in 

25 a State implementation plan is identical to a Federal fuel 
633

•HR 1640 IH 

1 formulation implemented by the Administrator, but the 

2 Administrator shall not reduce the total number of fuels 

3 authorized under the list published under subclause (II). 

4 ‘‘(IV) Subclause (I) shall not limit the Administra5 tor’s authority to approve a control or prohibition respect6 ing any new fuel under this paragraph in a State imple7 mentation plan or revision to a State implementation plan 

8 if such new fuel: 

9 ‘‘(aa) completely replaces a fuel on the list pub10 lished under subclause (II); or 

11 ‘‘(bb) does not increase the total number of 

12 fuels on the list published under subclause (II) as of 

13 September 1, 2004. 

14 In the event that the total number of fuels on the list pub15 lished under subclause (II) at the time of the Administra16 tor’s consideration of a control or prohibition respecting 

17 a new fuel is lower than the total number of fuels on such 

18 list as of September 1, 2004, the Administrator may ap19 prove a control or prohibition respecting a new fuel under 

20 this subclause if the Administrator, after consultation with 

21 the Secretary of Energy, publishes in the Federal Register 

22 after notice and comment a finding that, in the Adminis23 trator’s judgment, such control or prohibition respecting 

24 a new fuel will not cause fuel supply or distribution inter-
634

•HR 1640 IH 

1 ruptions or have a significant adverse impact on fuel 

2 producibility in the affected area or contiguous areas. 

3 ‘‘(V) The Administrator shall have no authority 

4 under this paragraph, when considering any particular 

5 State’s implementation plan or a revision to that State’s 

6 implementation plan, to approve any fuel unless that fuel 

7 was, as of the date of such consideration, approved in at 

8 least one State implementation plan in the applicable Pe9 troleum Administration for Defense District. However, the 

10 Administrator may approve as part of a State implementa11 tion plan or State implementation plan revision a fuel with 

12 a summertime Reid Vapor Pressure of 7.0 psi. In no event 

13 shall such approval by the Administrator cause an increase 

14 in the total number of fuels on the list published under 

15 subclause (II). 

16 ‘‘(VI) Nothing in this clause shall be construed to 

17 have any effect regarding any available authority of States 

18 to require the use of any fuel additive registered in accord19 ance with subsection (b), including any fuel additive reg20 istered in accordance with subsection (b) after the enact21 ment of this subclause.’’. 

22 (c) STUDY AND REPORT TO CONGRESS ON BOU23 TIQUE FUELS.—

24 (1) JOINT STUDY.—The Administrator of the 

25 Environmental Protection Agency and the Secretary 
635

•HR 1640 IH 

1 of Energy shall undertake a study of the effects on 

2 air quality, on the number of fuel blends, on fuel 

3 availability, on fuel fungibility, and on fuel costs of 

4 the State plan provisions adopted pursuant to sec5 tion 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

6 7545(c)(4)(C)). 

7 (2) FOCUS OF STUDY.—The primary focus of 

8 the study required under paragraph (1) shall be to 

9 determine how to develop a Federal fuels system 

10 that maximizes motor fuel fungibility and supply, 

11 preserves air quality standards, and reduces motor 

12 fuel price volatility that results from the prolifera13 tion of boutique fuels, and to recommend to Con14 gress such legislative changes as are necessary to 

15 implement such a system. The study should include 

16 the impacts on overall energy supply, distribution, 

17 and use as a result of the legislative changes rec18 ommended. 

19 (3) RESPONSIBILITY OF ADMINISTRATOR.—In 

20 carrying out the study required by this section, the 

21 Administrator shall coordinate obtaining comments 

22 from affected parties interested in the air quality 

23 impact assessment portion of the study. The Admin24 istrator shall use sound and objective science prac25 tices, shall consider the best available science, and 
636

•HR 1640 IH 

1 shall consider and include a description of the 

2 weight of the scientific evidence. 

3 (4) RESPONSIBILITY OF SECRETARY.—In car4 rying out the study required by this section, the Sec5 retary shall coordinate obtaining comments from af6 fected parties interested in the fuel availability, 

7 number of fuel blends, fuel fungibility and fuel costs 

8 portion of the study. 

9 (5) REPORT TO CONGRESS.—The Administrator 

10 and the Secretary jointly shall submit the results of 

11 the study required by this section in a report to the 

12 Congress not later than 12 months after the date of 

13 the enactment of this Act, together with any rec14 ommended regulatory and legislative changes. Such 

15 report shall be submitted to the Committee on En16 ergy and Commerce of the House of Representatives 

17 and the Committee on Environment and Public 

18 Works of the Senate. 

19 (6) AUTHORIZATION OF APPROPRIATIONS.—

20 There is authorized to be appropriated jointly to the 

21 Administrator and the Secretary $500,000 for the 

22 completion of the study required under this sub23 section. 

24 (d) DEFINITIONS.—In this section: 
637

•HR 1640 IH 

1 (1) The term ‘‘Administrator’’ means the Ad2 ministrator of the Environmental Protection Agency. 

3 (2) The term ‘‘Secretary’’ means the Secretary 

4 of Energy. 

5 (3) The term ‘‘fuel’’ means gasoline, diesel fuel, 

6 and any other liquid petroleum product commercially 

7 known as gasoline and diesel fuel for use in highway 

8 and nonroad motor vehicles. 

9 (4) The term ‘‘a control or prohibition respect10 ing a new fuel’’ means a control or prohibition on 

11 the formulation, composition, or emissions character12 istics of a fuel that would require the increase or de13 crease of a constituent in gasoline or diesel fuel. 

14 TITLE XVI—STUDIES 

15 SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND 

16 NATURAL GAS STORAGE. 

17 (a) DEFINITION.—For purposes of this section ‘‘pe18 troleum’’ means crude oil, motor gasoline, jet fuel, dis19 tillates, and propane. 

20 (b) STUDY.—The Secretary of Energy shall conduct 

21 a study on petroleum and natural gas storage capacity and 

22 operational inventory levels, nationwide and by major geo23 graphical regions. 

24 (c) CONTENTS.—The study shall address—
638

•HR 1640 IH 

1 (1) historical normal ranges for petroleum and 

2 natural gas inventory levels; 

3 (2) historical and projected storage capacity 

4 trends; 

5 (3) estimated operation inventory levels below 

6 which outages, delivery slowdown, rationing, inter7 ruptions in service, or other indicators of shortage 

8 begin to appear; 

9 (4) explanations for inventory levels dropping 

10 below normal ranges; and 

11 (5) the ability of industry to meet United 

12 States demand for petroleum and natural gas with13 out shortages or price spikes, when inventory levels 

14 are below normal ranges. 

15 (d) REPORT TO CONGRESS.—Not later than 1 year 

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

17 Energy shall submit a report to Congress on the results 

18 of the study, including findings and any recommendations 

19 for preventing future supply shortages. 

20 SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS. 

21 The Secretary of Energy shall contract with the Na22 tional Academy of Sciences for a study, to be completed 

23 within 1 year after the date of enactment of this Act, to 

24 examine whether the goals of energy efficiency standards 

25 are best served by measurement of energy consumed, and 
639

•HR 1640 IH 

1 efficiency improvements, at the actual site of energy con2 sumption, or through the full fuel cycle, beginning at the 

3 source of energy production. The Secretary shall submit 

4 the report to Congress. 

5 SEC. 1606. TELECOMMUTING STUDY. 

6 (a) STUDY REQUIRED.—The Secretary, in consulta7 tion with the Commission, the Director of the Office of 

8 Personnel Management, the Administrator of General 

9 Services, and the Administrator of NTIA, shall conduct 

10 a study of the energy conservation implications of the 

11 widespread adoption of telecommuting by Federal employ12 ees in the United States. 

13 (b) REQUIRED SUBJECTS OF STUDY.—The study re14 quired by subsection (a) shall analyze the following sub15 jects in relation to the energy saving potential of telecom16 muting by Federal employees: 

17 (1) Reductions of energy use and energy costs 

18 in commuting and regular office heating, cooling, 

19 and other operations. 

20 (2) Other energy reductions accomplished by 

21 telecommuting. 

22 (3) Existing regulatory barriers that hamper 

23 telecommuting, including barriers to broadband tele24 communications services deployment. 
640

•HR 1640 IH 

1 (4) Collateral benefits to the environment, fam2 ily life, and other values. 

3 (c) REPORT REQUIRED.—The Secretary shall submit 

4 to the President and Congress a report on the study re5 quired by this section not later than 6 months after the 

6 date of enactment of this Act. Such report shall include 

7 a description of the results of the analysis of each of the 

8 subject described in subsection (b). 

9 (d) DEFINITIONS.—As used in this section: 

10 (1) SECRETARY.—The term ‘‘Secretary’’ means 

11 the Secretary of Energy. 

12 (2) COMMISSION.—The term ‘‘Commission’’ 

13 means the Federal Communications Commission. 

14 (3) NTIA.—The term ‘‘NTIA’’ means the Na15 tional Telecommunications and Information Admin16 istration of the Department of Commerce. 

17 (4) TELECOMMUTING.—The term ‘‘telecom18 muting’’ means the performance of work functions 

19 using communications technologies, thereby elimi20 nating or substantially reducing the need to com21 mute to and from traditional worksites. 

22 (5) FEDERAL EMPLOYEE.—The term ‘‘Federal 

23 employee’’ has the meaning provided the term ‘‘em24 ployee’’ by section 2105 of title 5, United States 

25 Code. 
641

•HR 1640 IH 

1 SEC. 1607. LIHEAP REPORT. 

2 Not later than 1 year after the date of enactment 

3 of this Act, the Secretary of Health and Human Services 

4 shall transmit to Congress a report on how the Low-In5 come Home Energy Assistance Program could be used 

6 more effectively to prevent loss of life from extreme tem7 peratures. In preparing such report, the Secretary shall 

8 consult with appropriate officials in all 50 States and the 

9 District of Columbia. 

10 SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY. 

11 The Secretary of Energy and the Administrator of 

12 the Environmental Protection Agency shall—

13 (1) conduct a joint study of the benefits of oil 

14 bypass filtration technology in reducing demand for 

15 oil and protecting the environment; 

16 (2) examine the feasibility of using oil bypass 

17 filtration technology in Federal motor vehicle fleets; 

18 and 

19 (3) include in such study, prior to any deter20 mination of the feasibility of using oil bypass filtra21 tion technology, the evaluation of products and var22 ious manufacturers. 

23 SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS. 

24 The Secretary of Energy shall—
642

•HR 1640 IH 

1 (1) conduct a study of the benefits of total inte2 grated thermal systems in reducing demand for oil 

3 and protecting the environment; and 

4 (2) examine the feasibility of using total inte5 grated thermal systems in Department of Defense 

6 and other Federal motor vehicle fleets. 

7 SEC. 1610. UNIVERSITY COLLABORATION. 

8 Not later than 2 years after the date of enactment 

9 of this Act, the Secretary of Energy shall transmit to Con10 gress a report that examines the feasibility of promoting 

11 collaborations between large institutions of higher edu12 cation and small institutions of higher education through 

13 grants, contracts, and cooperative agreements made by the 

14 Secretary for energy projects. The Secretary shall also 

15 consider providing incentives for the inclusion of small in16 stitutions of higher education, including minority-serving 

17 institutions, in energy research grants, contracts, and co18 operative agreements. 

19 SEC. 1611. RELIABILITY AND CONSUMER PROTECTION AS20 SESSMENT. 

21 Not later than 5 years after the date of enactment 

22 of this Act, and each 5 years thereafter, the Federal En23 ergy Regulatory Commission shall assess the effects of the 

24 exemption of electric cooperatives and government-owned 

25 utilities from Commission regulation under section 201(f) 
643

•HR 1640 IH 

1 of the Federal Power Act. The assessment shall include 

2 any effects on—

3 (1) reliability of interstate electric transmission 

4 networks; 

5 (2) benefit to consumers, and efficiency, of 

6 competitive wholesale electricity markets; 

7 (3) just and reasonable rates for electricity con8 sumers; and 

9 (4) the ability of the Commission to protect 

10 electricity consumers. 

11 If the Commission finds that the 201(f) exemption results 

12 in adverse effects on consumers or electric reliability, the 

13 Commission shall make appropriate recommendations to 

14 Congress pursuant to section 311 of the Federal Power 

15 Act. 

16 SEC. 1612. REPORT ON ENERGY INTEGRATION WITH LATIN 

17 AMERICA. 

18 The Secretary of Energy shall submit an annual re19 port to the Committee on Energy and Commerce of the 

20 United States House of Representatives and to the Com21 mittee on Energy and Natural Resources of the United 

22 States Senate concerning the status of energy export de23 velopment in Latin America and efforts by the Secretary 

24 and other departments and agencies of the United States 

25 to promote energy integration with Latin America. The 
644

•HR 1640 IH 

1 report shall contain a detailed analysis of the status of 

2 energy export development in Mexico and a description of 

3 all significant efforts by the Secretary and other depart4 ments and agencies to promote a constructive relationship 

5 with Mexico regarding the development of that nation’s 

6 energy capacity. In particular this report shall outline ef7 forts the Secretary and other departments and agencies 

8 have made to ensure that regulatory approval and over9 sight of United States/Mexico border projects that result 

10 in the expansion of Mexican energy capacity are effectively 

11 coordinated across departments and with the Mexican gov12 ernment. 

13 SEC. 1613. LOW-VOLUME GAS RESERVOIR STUDY. 

14 (a) STUDY.—The Secretary of Energy shall make a 

15 grant to an organization of oil and gas producing States, 

16 specifically those containing significant numbers of mar17 ginal oil and natural gas wells, for conducting an annual 

18 study of low-volume natural gas reservoirs. Such organiza19 tion shall work with the State geologist of each State being 

20 studied. 

21 (b) CONTENTS.—The studies under this section 

22 shall—

23 (1) determine the status and location of mar24 ginal wells and gas reservoirs; 
645

•HR 1640 IH 

1 (2) gather the production information of these 

2 marginal wells and reservoirs; 

3 (3) estimate the remaining producible reserves 

4 based on variable pipeline pressures; 

5 (4) locate low-pressure gathering facilities and 

6 pipelines; 

7 (5) recommend incentives which will enable the 

8 continued production of these resources; 

9 (6) produce maps and literature to disseminate 

10 to States to promote conservation of natural gas re11 serves; and 

12 (7) evaluate the amount of natural gas that is 

13 being wasted through the practice of venting or flar14 ing of natural gas produced in association with 

15 crude oil well production. 

16 (c) DATA ANALYSIS.—Data development and anal17 ysis under this section shall be performed by an institution 

18 of higher education with GIS capabilities. If the organiza19 tion receiving the grant under subsection (a) does not have 

20 GIS capabilities, such organization shall contract with one 

21 or more entities with—

22 (1) technological capabilities and resources to 

23 perform advanced image processing, GIS program24 ming, and data analysis; and 

25 (2) the ability to—
646

•HR 1640 IH 

1 (A) process remotely sensed imagery with 

2 high spatial resolution; 

3 (B) deploy global positioning systems; 

4 (C) process and synthesize existing, vari5 able-format gas well, pipeline, gathering facility, 

6 and reservoir data; 

7 (D) create and query GIS databases with 

8 infrastructure location and attribute informa9 tion; 

10 (E) write computer programs to customize 

11 relevant GIS software; 

12 (F) generate maps, charts, and graphs 

13 which summarize findings from data research 

14 for presentation to different audiences; and 

15 (G) deliver data in a variety of formats, in16 cluding Internet Map Server for query and dis17 play, desktop computer display, and access 

18 through handheld personal digital assistants. 

19 (d) AUTHORIZATION OF APPROPRIATIONS.—There 

20 are authorized to be appropriated to the Secretary of En21 ergy for carrying out this section—

22 (1) $1,500,000 for fiscal year 2006; and 

23 (2) $450,000 for each of the fiscal years 2007 

24 through 2010. 
647

•HR 1640 IH 

1 (e) DEFINITIONS.—For purposes of this section, the 

2 term ‘‘GIS’’ means geographic information systems tech3 nology that facilitates the organization and management 

4 of data with a geographic component.

Æ