IB 

Union Calendar No. 122 

109TH CONGRESS 

1ST SESSION H. R. 1640 

[Report No. 109–215, Part I] 

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 

JULY 29, 2005 

Additional sponsors: Mr. OTTER and Mr. BURGESS

JULY 29, 2005 

Reported from the Committee on Energy and Commerce with an amendment 

[Strike out all after the enacting clause and insert the part printed in italic] 

JULY 29, 2005 

Committees on Science, Resources, Education and the Workforce, Transportation and Infrastructure, Financial Services, and Agriculture discharged; 

committed to the Committee of the Whole House on the State of the 

Union and ordered to be printed 
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[For text of introduced bill, see copy of bill as introduced on April 14, 2005] 

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 ‘‘En5 ergy 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. 

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. 
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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. 

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. 
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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 

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. 
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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. 

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. 
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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. 

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. 
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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. 

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. 
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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 

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. 
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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. 

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. 
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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. 

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. 
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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 ‘‘(1) shall develop, update, and implement a cost12 effective energy conservation and management plan 

13 (referred to in this section as the ‘plan’) for all facili14 ties administered by Congress (referred to in this sec15 tion as ‘congressional buildings’) to meet the energy 

16 performance requirements for Federal buildings estab17 lished under section 543(a)(1); and 

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

19 than 180 days after the date of enactment of this sec20 tion. 

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

2 used to determine the cost-effectiveness of proposed en3 ergy efficiency projects; 

4 ‘‘(2) a schedule of energy surveys to ensure com5 plete surveys of all congressional buildings every 5 

6 years to determine the cost and payback period of en7 ergy and water conservation measures; 

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

10 ‘‘(4) the results of a study of the costs and bene11 fits of installation of submetering in congressional 

12 buildings; and 

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

14 for each Member and employing authority of Congress 

15 that detail simple, cost-effective methods to save en16 ergy and taxpayer dollars in the workplace. 

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

18 shall submit to Congress annually a report on congressional 

19 energy management and conservation programs required 

20 under this section that describes in detail— 

21 ‘‘(1) energy expenditures and savings estimates 

22 for each facility; 

23 ‘‘(2) energy management and conservation 

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

2 this section.’’. 

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

4 contents of the National Energy Conservation Policy Act 

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

6 part 3 of title V the following new item: 

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

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

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

9 (d) ENERGY INFRASTRUCTURE.—The Architect of the 

10 Capitol, building on the Master Plan Study completed in 

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

12 infrastructure of the Capital Complex to determine how the 

13 infrastructure could be augmented to become more energy 

14 efficient, using unconventional and renewable energy re15 sources, in a way that would enable the Complex to have 

16 reliable utility service in the event of power fluctuations, 

17 shortages, or outages. 

18 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

19 authorized to be appropriated to the Architect of the Capitol 

20 to carry out subsection (d), $2,000,000 for each of fiscal 

21 years 2006 through 2010. 

22 SEC. 102. ENERGY MANAGEMENT REQUIREMENTS. 

23 (a) ENERGY REDUCTION GOALS.— 

24 (1) AMENDMENT.—Section 543(a)(1) of the Na25 tional Energy Conservation Policy Act (42 U.S.C. 
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1 8253(a)(1)) is amended by striking ‘‘its Federal 

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

3 end and inserting ‘‘the Federal buildings of the agen4 cy (including each industrial or laboratory facility) 

5 so that the energy consumption per gross square foot 

6 of the Federal buildings of the agency in fiscal years 

7 2006 through 2015 is reduced, as compared with the 

8 energy consumption per gross square foot of the Fed9 eral buildings of the agency in fiscal year 2003, by 

10 the percentage specified in the following table: ‘‘Fiscal Year Percentage reduction 

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

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

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

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

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

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

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

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

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

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

11 (2) REPORTING BASELINE.—The energy reduc12 tion goals and baseline established in paragraph (1) 

13 of section 543(a) of the National Energy Conservation 

14 Policy Act (42 U.S.C. 8253(a)(1)), as amended by 

15 this subsection, supersede all previous goals and base16 lines under such paragraph, and related reporting re17 quirements. 

18 (b) REVIEW AND REVISION OF ENERGY PERFORMANCE

19 REQUIREMENT.—Section 543(a) of the National Energy 
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1 Conservation Policy Act (42 U.S.C. 8253(a)) is further 

2 amended by adding at the end the following: 

3 ‘‘(3) Not later than December 31, 2014, the Secretary 

4 shall review the results of the implementation of the energy 

5 performance requirement established under paragraph (1) 

6 and submit to Congress recommendations concerning en7 ergy performance requirements for fiscal years 2016 

8 through 2025.’’. 

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

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

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

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

13 exclude, from the energy performance requirement for a fis14 cal year established under subsection (a) and the energy 

15 management requirement established under subsection (b), 

16 any Federal building or collection of Federal buildings, if 

17 the head of the agency finds that— 

18 ‘‘(i) compliance with those requirements would 

19 be impracticable; 

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

21 federally required energy management reports; 

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

23 the energy efficiency requirements of this Act, the En24 ergy Policy Act of 1992, Executive orders, and other 

25 Federal law; and 
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1 ‘‘(iv) the agency has implemented all practicable, 

2 life cycle cost-effective projects with respect to the Fed3 eral building or collection of Federal buildings to be 

4 excluded. 

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

7 ‘‘(i) the energy intensiveness of activities carried 

8 out in the Federal building or collection of Federal 

9 buildings; or 

10 ‘‘(ii) the fact that the Federal building or collec11 tion of Federal buildings is used in the performance 

12 of a national security function.’’. 

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

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

15 8253(c)(2)) is amended— 

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

17 inserting ‘‘standards for exclusion’’; 

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

19 and inserting ‘‘the exclusion’’; and 

20 (3) by striking ‘‘energy consumption require21 ments’’ and inserting ‘‘requirements of subsections (a) 

22 and (b)(1)’’. 

23 (e) CRITERIA.—Section 543(c) of the National Energy 

24 Conservation Policy Act (42 U.S.C. 8253(c)) is further 

25 amended by adding at the end the following: 
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1 ‘‘(3) Not later than 180 days after the date of enact2 ment of this paragraph, the Secretary shall issue guidelines 

3 that establish criteria for exclusions under paragraph (1).’’. 

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

5 Section 546 of the National Energy Conservation Policy Act 

6 (42 U.S.C. 8256) is amended by adding at the end the fol7 lowing new subsection: 

8 ‘‘(e) RETENTION OF ENERGY AND WATER SAVINGS.— 

9 An agency may retain any funds appropriated to that 

10 agency for energy expenditures, water expenditures, or 

11 wastewater treatment expenditures, at buildings subject to 

12 the requirements of section 543(a) and (b), that are not 

13 made because of energy savings or water savings. Except 

14 as otherwise provided by law, such funds may be used only 

15 for energy efficiency, water conservation, or unconventional 

16 and renewable energy resources projects.’’. 

17 (g) REPORTS.—Section 548(b) of the National Energy 

18 Conservation Policy Act (42 U.S.C. 8258(b)) is amended— 

19 (1) in the subsection heading, by inserting ‘‘THE

20 PRESIDENT AND’’ before ‘‘CONGRESS’’; and 

21 (2) by inserting ‘‘President and’’ before ‘‘Con22 gress’’. 

23 (h) CONFORMING AMENDMENT.—Section 550(d) of the 

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

25 8258b(d)) is amended in the second sentence by striking 
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1 ‘‘the 20 percent reduction goal established under section 

2 543(a) of the National Energy Conservation Policy Act (42 

3 U.S.C. 8253(a)).’’ and inserting ‘‘each of the energy reduc4 tion goals established under section 543(a).’’. 

5 SEC. 103. ENERGY USE MEASUREMENT AND ACCOUNT6 ABILITY. 

7 Section 543 of the National Energy Conservation Pol8 icy Act (42 U.S.C. 8253) is further amended by adding at 

9 the end the following: 

10 ‘‘(e) METERING OF ENERGY USE.— 

11 ‘‘(1) DEADLINE.—By October 1, 2012, in accord12 ance with guidelines established by the Secretary 

13 under paragraph (2), all Federal buildings shall, for 

14 the purposes of efficient use of energy and reduction 

15 in the cost of electricity used in such buildings, be me16 tered or submetered. Each agency shall use, to the 

17 maximum extent practicable, advanced meters or ad18 vanced metering devices that provide data at least 

19 daily and that measure at least hourly consumption 

20 of electricity in the Federal buildings of the agency. 

21 Such data shall be incorporated into existing Federal 

22 energy tracking systems and made available to Fed23 eral facility energy managers. 

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

2 days after the date of enactment of this sub3 section, the Secretary, in consultation with the 

4 Department of Defense, the General Services Ad5 ministration, representatives from the metering 

6 industry, utility industry, energy services indus7 try, energy efficiency industry, energy efficiency 

8 advocacy organizations, national laboratories, 

9 universities, and Federal facility energy man10 agers, shall establish guidelines for agencies to 

11 carry out paragraph (1). 

12 ‘‘(B) REQUIREMENTS FOR GUIDELINES.— 

13 The guidelines shall— 

14 ‘‘(i) take into consideration— 

15 ‘‘(I) the cost of metering and sub16 metering and the reduced cost of oper17 ation and maintenance expected to re18 sult from metering and submetering; 

19 ‘‘(II) the extent to which metering 

20 and submetering are expected to result 

21 in increased potential for energy man22 agement, increased potential for energy 

23 savings and energy efficiency improve24 ment, and cost and energy savings due 

25 to utility contract aggregation; and 
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1 ‘‘(III) the measurement and 

2 verification protocols of the Depart3 ment of Energy; 

4 ‘‘(ii) include recommendations con5 cerning the amount of funds and the num6 ber of trained personnel necessary to gather 

7 and use the metering information to track 

8 and reduce energy use; 

9 ‘‘(iii) establish priorities for types and 

10 locations of buildings to be metered and 

11 submetered based on cost-effectiveness and a 

12 schedule of 1 or more dates, not later than 

13 1 year after the date of issuance of the 

14 guidelines, on which the requirements speci15 fied in paragraph (1) shall take effect; and 

16 ‘‘(iv) establish exclusions from the re17 quirements specified in paragraph (1) based 

18 on the de minimis quantity of energy use of 

19 a Federal building, industrial process, or 

20 structure. 

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

22 date guidelines are established under paragraph (2), 

23 in a report submitted by the agency under section 

24 548(a), each agency shall submit to the Secretary a 

25 plan describing how the agency will implement the 
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1 requirements of paragraph (1), including (A) how the 

2 agency will designate personnel primarily responsible 

3 for achieving the requirements and (B) demonstration 

4 by the agency, complete with documentation, of any 

5 finding that advanced meters or advanced metering 

6 devices, as defined in paragraph (1), are not prac7 ticable.’’. 

8 SEC. 104. PROCUREMENT OF ENERGY EFFICIENT PROD9 UCTS. 

10 (a) REQUIREMENTS.—Part 3 of title V of the National 

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

12 as amended by section 101, is amended by adding at the 

13 end the following: 

14 ‘‘SEC. 553. FEDERAL PROCUREMENT OF ENERGY EFFICIENT 

15 PRODUCTS. 

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

17 ‘‘(1) AGENCY.—The term ‘agency’ has the mean18 ing given that term in section 7902(a) of title 5, 

19 United States Code. 

20 ‘‘(2) ENERGY STAR PRODUCT.—The term ‘En21 ergy Star product’ means a product that is rated for 

22 energy efficiency under an Energy Star program. 

23 ‘‘(3) ENERGY STAR PROGRAM.—The term ‘En24 ergy Star program’ means the program established by 
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1 section 324A of the Energy Policy and Conservation 

2 Act. 

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

4 ‘FEMP designated product’ means a product that is 

5 designated under the Federal Energy Management 

6 Program of the Department of Energy as being 

7 among the highest 25 percent of equivalent products 

8 for energy efficiency. 

9 ‘‘(b) PROCUREMENT OF ENERGY EFFICIENT PROD10 UCTS.— 

11 ‘‘(1) REQUIREMENT.—To meet the requirements 

12 of an agency for an energy consuming product, the 

13 head of the agency shall, except as provided in para14 graph (2), procure— 

15 ‘‘(A) an Energy Star product; or 

16 ‘‘(B) a FEMP designated product. 

17 ‘‘(2) EXCEPTIONS.—The head of an agency is not 

18 required to procure an Energy Star product or 

19 FEMP designated product under paragraph (1) if the 

20 head of the agency finds in writing that— 

21 ‘‘(A) an Energy Star product or FEMP des22 ignated product is not cost-effective over the life 

23 of the product taking energy cost savings into ac24 count; or 
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1 ‘‘(B) no Energy Star product or FEMP des2 ignated product is reasonably available that 

3 meets the functional requirements of the agency. 

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

5 agency shall incorporate into the specifications for all 

6 procurements involving energy consuming products 

7 and systems, including guide specifications, project 

8 specifications, and construction, renovation, and serv9 ices contracts that include provision of energy con10 suming products and systems, and into the factors for 

11 the evaluation of offers received for the procurement, 

12 criteria for energy efficiency that are consistent with 

13 the criteria used for rating Energy Star products and 

14 for rating FEMP designated products. 

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

16 FEDERAL CATALOGS.—Energy Star products and FEMP 

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

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

21 Defense Logistics Agency shall supply only Energy Star 

22 products or FEMP designated products for all product cat23 egories covered by the Energy Star program or the Federal 

24 Energy Management Program, except in cases where the 

25 agency ordering a product specifies in writing that no En-
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1 ergy Star product or FEMP designated product is available 

2 to meet the buyer’s functional requirements, or that no En3 ergy Star product or FEMP designated product is cost-effec4 tive for the intended application over the life of the product, 

5 taking energy cost savings into account. 

6 ‘‘(d) SPECIFIC PRODUCTS.—(1) In the case of electric 

7 motors of 1 to 500 horsepower, agencies shall select only 

8 premium efficient motors that meet a standard designated 

9 by the Secretary. The Secretary shall designate such a 

10 standard not later than 120 days after the date of the enact11 ment of this section, after considering the recommendations 

12 of associated electric motor manufacturers and energy effi13 ciency groups. 

14 ‘‘(2) All Federal agencies are encouraged to take ac15 tions to maximize the efficiency of air conditioning and re16 frigeration equipment, including appropriate cleaning and 

17 maintenance, including the use of any system treatment or 

18 additive that will reduce the electricity consumed by air 

19 conditioning and refrigeration equipment. Any such treat20 ment or additive must be— 

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

22 in increasing the efficiency of air conditioning and 

23 refrigeration equipment without having an adverse 

24 impact on air conditioning performance (including 

25 cooling capacity) or equipment useful life; 
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1 ‘‘(B) determined by the Administrator of the En2 vironmental Protection Agency to be environmentally 

3 safe; and 

4 ‘‘(C) shown to increase seasonal energy efficiency 

5 ratio (SEER) or energy efficiency ratio (EER) when 

6 tested by the National Institute of Standards and 

7 Technology according to Department of Energy test 

8 procedures without causing any adverse impact on 

9 the system, system components, the refrigerant or lu10 bricant, or other materials in the system. 

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

12 published in the Federal Register for public review and 

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

14 or primary refrigerant shall not be considered an additive. 

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

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

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

18 (b) CONFORMING AMENDMENT.—The table of contents 

19 of the National Energy Conservation Policy Act is further 

20 amended by inserting after the item relating to section 552 

21 the following new item: 

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

22 SEC. 105. ENERGY SAVINGS PERFORMANCE CONTRACTS. 

23 (a) LIMITATIONS.— 

24 (1) IN GENERAL.—Section 801(a)(2) of the Na25 tional Energy Conservation Policy Act (42 U.S.C. 
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1 8287(a)(2)) is amended by adding at the end the fol2 lowing subparagraph: 

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

4 date of enactment of the Energy Policy Act of 2005, enter 

5 into more than a total of 100 contracts under this title. 

6 Payments made by the Federal Government under all con7 tracts permitted by this subparagraph combined shall not 

8 exceed a total of $500,000,000. Each Federal agency shall 

9 appoint a coordinator for Energy Savings Performance 

10 Contracts with the responsibility to monitor the number of 

11 such contracts for that Federal agency and the investment 

12 value of each contract. The coordinators for each Federal 

13 agency shall meet monthly to ensure that the limits speci14 fied in this subparagraph on the number of contracts and 

15 the payments made for the contracts are not exceeded.’’. 

16 (2) DEFINITION.—Section 804(1) of the National 

17 Energy Conservation Policy Act (42 U.S.C. 8287c(1)) 

18 is amended to read as follows: 

19 ‘‘(1) The term ‘Federal agency’ means the De20 partment of Defense, the Department of Veterans Af21 fairs, and the Department of Energy.’’. 

22 (3) VALIDITY OF CONTRACTS.—The amendments 

23 made by this subsection shall not affect the validity 

24 of contracts entered into under title VIII of the Na25 tional Energy Conservation Policy Act (42 U.S.C. 
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1 8287 et seq.) before the date of enactment of this Act, 

2 or of contracts described in subsection (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) REVIEW.—Not later than 180 days after the date 

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

8 complete a review of the Energy Savings Performance Con9 tract program to identify statutory, regulatory, and admin10 istrative obstacles that prevent Federal agencies from fully 

11 utilizing the program. In addition, this review shall iden12 tify all areas for increasing program flexibility and effec13 tiveness, including audit and measurement verification re14 quirements, accounting for energy use in determining sav15 ings, contracting requirements, including the identification 

16 of additional qualified contractors, and energy efficiency 

17 services covered. The Secretary shall report these findings 

18 to Congress and shall implement identified administrative 

19 and regulatory changes to increase program flexibility and 

20 effectiveness to the extent that such changes are consistent 

21 with statutory authority. 

22 (d) EXTENSION OF AUTHORITY.—Any energy savings 

23 performance contract entered into under section 801 of the 

24 National Energy Conservation Policy Act (42 U.S.C. 8287) 

25 after October 1, 2006, and before the date of enactment of 
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1 this Act, shall be deemed to have been entered into pursuant 

2 to such section 801 as amended by subsection (a) of this 

3 section. 

4 SEC. 107. VOLUNTARY COMMITMENTS TO REDUCE INDUS5 TRIAL ENERGY INTENSITY. 

6 (a) VOLUNTARY AGREEMENTS.—The Secretary of En7 ergy is authorized to enter into voluntary agreements with 

8 1 or more persons in industrial sectors that consume sig9 nificant amounts of primary energy per unit of physical 

10 output to reduce the energy intensity of their production 

11 activities by a significant amount relative to improvements 

12 in each sector in recent years. 

13 (b) RECOGNITION.—The Secretary of Energy, in co14 operation with the Administrator of the Environmental 

15 Protection Agency and other appropriate Federal agencies, 

16 shall recognize and publicize the achievements of partici17 pants in voluntary agreements under this section. 

18 (c) DEFINITION.—In this section, the term ‘‘energy in19 tensity’’ means the primary energy consumed per unit of 

20 physical output in an industrial process. 

21 SEC. 108. ADVANCED BUILDING EFFICIENCY TESTBED. 

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

23 consultation with the Administrator of General Services, 

24 shall establish an Advanced Building Efficiency Testbed 

25 program for the development, testing, and demonstration of 
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1 advanced engineering systems, components, and materials 

2 to enable innovations in building technologies. The program 

3 shall evaluate efficiency concepts for government and indus4 try buildings, and demonstrate the ability of next genera5 tion buildings to support individual and organizational 

6 productivity and health (including by improving indoor air 

7 quality) as well as flexibility and technological change to 

8 improve environmental sustainability. Such program shall 

9 complement and not duplicate existing national programs. 

10 (b) PARTICIPANTS.—The program established under 

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

12 to combine the expertise from numerous academic fields in13 cluding, at a minimum, intelligent workplaces and ad14 vanced building systems and engineering, electrical and 

15 computer engineering, computer science, architecture, 

16 urban design, and environmental and mechanical engineer17 ing. Such university shall partner with other universities 

18 and entities who have established programs and the capa19 bility of advancing innovative building efficiency tech20 nologies. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary of Energy 

23 to carry out this section $6,000,000 for each of the fiscal 

24 years 2006 through 2008, to remain available until ex25 pended. For any fiscal year in which funds are expended 
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under this section, the Secretary shall provide 1 1 ⁄3 of the total 

2 amount to the lead university described in subsection (b), 

and provide the remaining 2 3 ⁄3 to the other participants re4 ferred to in subsection (b) on an equal basis. 

5 SEC. 109. FEDERAL BUILDING PERFORMANCE STANDARDS. 

6 Section 305(a) of the Energy Conservation and Pro7 duction Act (42 U.S.C. 6834(a)) is amended— 

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

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

10 International Energy Conservation Code’’; and 

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

12 ‘‘(3) REVISED FEDERAL BUILDING ENERGY EFFI13 CIENCY PERFORMANCE STANDARDS.— 

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

15 the date of enactment of this paragraph, the Secretary 

16 of Energy shall establish, by rule, revised Federal 

17 building energy efficiency performance standards that 

18 require that— 

19 ‘‘(i) if life-cycle cost-effective, for new Fed20 eral buildings— 

21 ‘‘(I) such buildings be designed so as to 

22 achieve energy consumption levels at least 

23 30 percent below those of the version current 

24 as of the date of enactment of this para25 graph of the ASHRAE Standard or the 
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1 International Energy Conservation Code, as 

2 appropriate; and 

3 ‘‘(II) sustainable design principles are 

4 applied to the siting, design, and construc5 tion of all new and replacement buildings; 

6 and 

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

8 efficiency, water conservation technologies shall 

9 be applied to the extent they are life-cycle cost ef10 fective. 

11 ‘‘(B) ADDITIONAL REVISIONS.—Not later than 1 

12 year after the date of approval of each subsequent re13 vision of the ASHRAE Standard or the International 

14 Energy Conservation Code, as appropriate, the Sec15 retary of Energy shall determine, based on the cost16 effectiveness of the requirements under the amend17 ments, whether the revised standards established 

18 under this paragraph should be updated to reflect the 

19 amendments. 

20 ‘‘(C) STATEMENT ON COMPLIANCE OF NEW

21 BUILDINGS.—In the budget request of the Federal 

22 agency for each fiscal year and each report submitted 

23 by the Federal agency under section 548(a) of the Na24 tional Energy Conservation Policy Act (42 U.S.C. 
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1 8258(a)), the head of each Federal agency shall in2 clude— 

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

4 owned, operated, or controlled by the Federal 

5 agency; and 

6 ‘‘(ii) a statement concerning whether the 

7 Federal buildings meet or exceed the revised 

8 standards established under this paragraph.’’. 

9 SEC. 110. DAYLIGHT SAVINGS. 

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

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

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

13 and 

14 (2) by striking ‘‘October’’ and inserting ‘‘Novem15 ber’’. 

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

17 after the date of enactment of this Act, the Secretary of En18 ergy shall report to Congress on the impact this section on 

19 energy consumption in the United States. 

20 Subtitle B—Energy Assistance and 

21 State Programs 

22 SEC. 121. LOW INCOME HOME ENERGY ASSISTANCE PRO23 GRAM. 

24 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

25 2602(b) of the Low-Income Home Energy Assistance Act of 
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1 1981 (42 U.S.C. 8621(b)) is amended by striking ‘‘and 

2 $2,000,000,000 for each of fiscal years 2002 through 2004’’ 

3 and inserting ‘‘and $5,100,000,000 for each of fiscal years 

4 2005 through 2007’’. 

5 (b) RENEWABLE FUELS.—The Low-Income Home En6 ergy Assistance Act of 1981 (42 U.S.C. 8621 et seq.) is 

7 amended by adding at the end the following new section: 

8 ‘‘RENEWABLE FUELS

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

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

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

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

13 (c) REPORT TO CONGRESS.—The Secretary of Energy 

14 shall report to Congress on the use of renewable fuels in 

15 providing assistance under the Low-Income Home Energy 

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

17 SEC. 122. WEATHERIZATION ASSISTANCE. 

18 (a) AUTHORIZATION OF APPROPRIATIONS.—Section 

19 422 of the Energy Conservation and Production Act (42 

20 U.S.C. 6872) is amended by striking ‘‘for fiscal years 1999 

21 through 2003 such sums as may be necessary’’ and inserting 

22 ‘‘$500,000,000 for fiscal year 2006, $600,000,000 for fiscal 

23 year 2007, and $700,000,000 for fiscal year 2008’’. 

24 (b) ELIGIBILITY.—Section 412(7) of the Energy Con25 servation and Production Act (42 U.S.C. 6862(7)) is 
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1 amended by striking ‘‘125 percent’’ both places it appears 

2 and inserting ‘‘150 percent’’. 

3 SEC. 123. STATE ENERGY PROGRAMS. 

4 (a) STATE ENERGY CONSERVATION PLANS.—Section 

5 362 of the Energy Policy and Conservation Act (42 U.S.C. 

6 6322) is amended by inserting at the end the following new 

7 subsection: 

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

9 invite the Governor of each State to review and, if nec10 essary, revise the energy conservation plan of such State 

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

12 consider the energy conservation plans of other States with13 in the region, and identify opportunities and actions car14 ried out in pursuit of common energy conservation goals.’’. 

15 (b) STATE ENERGY EFFICIENCY GOALS.—Section 364 

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

17 6324) is amended to read as follows: 

18 ‘‘STATE ENERGY EFFICIENCY GOALS

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

20 respect to which assistance is made available under this 

21 part on or after the date of enactment of the Energy Policy 

22 Act of 2005 shall contain a goal, consisting of an improve23 ment of 25 percent or more in the efficiency of use of energy 

24 in the State concerned in calendar year 2012 as compared 

25 to calendar year 1990, and may contain interim goals.’’. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS.—Section 

2 365(f) of the Energy Policy and Conservation Act (42 

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

4 1999 through 2003 such sums as may be necessary’’ and 

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

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

7 SEC. 124. ENERGY EFFICIENT APPLIANCE REBATE PRO8 GRAMS. 

9 (a) DEFINITIONS.—In this section: 

10 (1) ELIGIBLE STATE.—The term ‘‘eligible State’’ 

11 means a State that meets the requirements of sub12 section (b). 

13 (2) ENERGY STAR PROGRAM.—The term ‘‘Energy 

14 Star program’’ means the program established by sec15 tion 324A of the Energy Policy and Conservation Act. 

16 (3) RESIDENTIAL ENERGY STAR PRODUCT.—The 

17 term ‘‘residential Energy Star product’’ means a 

18 product for a residence that is rated for energy effi19 ciency under the Energy Star program. 

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

21 the Secretary of Energy. 

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

23 energy office’’ means the State agency responsible for 

24 developing State energy conservation plans under sec-
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1 tion 362 of the Energy Policy and Conservation Act 

2 (42 U.S.C. 6322). 

3 (6) STATE PROGRAM.—The term ‘‘State pro4 gram’’ means a State energy efficient appliance re5 bate program described in subsection (b)(1). 

6 (b) ELIGIBLE STATES.—A State shall be eligible to re7 ceive an allocation under subsection (c) if the State— 

8 (1) establishes (or has established) a State energy 

9 efficient appliance rebate program to provide rebates 

10 to residential consumers for the purchase of residen11 tial Energy Star products to replace used appliances 

12 of the same type; 

13 (2) submits an application for the allocation at 

14 such time, in such form, and containing such infor15 mation as the Secretary may require; and 

16 (3) provides assurances satisfactory to the Sec17 retary that the State will use the allocation to supple18 ment, but not supplant, funds made available to 

19 carry out the State program. 

20 (c) AMOUNT OF ALLOCATIONS.— 

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

22 each fiscal year, the Secretary shall allocate to the 

23 State energy office of each eligible State to carry out 

24 subsection (d) an amount equal to the product ob25 tained by multiplying the amount made available 
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1 under subsection (f) for the fiscal year by the ratio 

2 that the population of the State in the most recent 

3 calendar year for which data are available bears to 

4 the total population of all eligible States in that cal5 endar year. 

6 (2) MINIMUM ALLOCATIONS.—For each fiscal 

7 year, the amounts allocated under this subsection 

8 shall be adjusted proportionately so that no eligible 

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

10 determined by the Secretary. 

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

12 State energy office under subsection (c) may be used to pay 

13 up to 50 percent of the cost of establishing and carrying 

14 out a State program. 

15 (e) ISSUANCE OF REBATES.—Rebates may be provided 

16 to residential consumers that meet the requirements of the 

17 State program. The amount of a rebate shall be determined 

18 by the State energy office, taking into consideration— 

19 (1) the amount of the allocation to the State en20 ergy office under subsection (c); 

21 (2) the amount of any Federal or State tax in22 centive available for the purchase of the residential 

23 Energy Star product; and 

24 (3) the difference between the cost of the residen25 tial Energy Star product and the cost of an appliance 
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1 that is not a residential Energy Star product, but is 

2 of the same type as, and is the nearest capacity, per3 formance, and other relevant characteristics (as deter4 mined by the State energy office) to, the residential 

5 Energy Star product. 

6 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

7 authorized to be appropriated to the Secretary to carry out 

8 this section $50,000,000 for each of the fiscal years 2006 

9 through 2010. 

10 SEC. 125. ENERGY EFFICIENT PUBLIC BUILDINGS. 

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

12 grants to the State agency responsible for developing State 

13 energy conservation plans under section 362 of the Energy 

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

15 such agency exists, a State agency designated by the Gov16 ernor of the State, to assist units of local government in 

17 the State in improving the energy efficiency of public build18 ings and facilities— 

19 (1) through construction of new energy efficient 

20 public buildings that use at least 30 percent less en21 ergy than a comparable public building constructed 

22 in compliance with standards prescribed in the most 

23 recent version of the International Energy Conserva24 tion Code, or a similar State code intended to achieve 

25 substantially equivalent efficiency levels; or 
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1 (2) through renovation of existing public build2 ings to achieve reductions in energy use of at least 30 

3 percent as compared to the baseline energy use in 

4 such buildings prior to renovation, assuming a 3- 

5 year, weather-normalized average for calculating such 

6 baseline. 

7 (b) ADMINISTRATION.—State energy offices receiving 

8 grants under this section shall— 

9 (1) maintain such records and evidence of com10 pliance as the Secretary may require; and 

11 (2) develop and distribute information and ma12 terials and conduct programs to provide technical 

13 services and assistance to encourage planning, financ14 ing, and design of energy efficient public buildings by 

15 units of local government. 

16 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

17 purposes of this section, there are authorized to be appro18 priated to the Secretary of Energy $30,000,000 for each of 

19 fiscal years 2006 through 2010. Not more than 10 percent 

20 of appropriated funds shall be used for administration. 

21 SEC. 126. LOW INCOME COMMUNITY ENERGY EFFICIENCY 

22 PILOT PROGRAM. 

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

24 to make grants to units of local government, private, non25 profit community development organizations, and Indian 
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1 tribe economic development entities to improve energy effi2 ciency; identify and develop alternative, renewable, and dis3 tributed energy supplies; and increase energy conservation 

4 in low income rural and urban communities. 

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

6 grants on a competitive basis for— 

7 (1) investments that develop alternative, renew8 able, and distributed energy supplies; 

9 (2) energy efficiency projects and energy con10 servation programs; 

11 (3) studies and other activities that improve en12 ergy efficiency in low income rural and urban com13 munities; 

14 (4) planning and development assistance for in15 creasing the energy efficiency of buildings and facili16 ties; and 

17 (5) technical and financial assistance to local 

18 government and private entities on developing new 

19 renewable and distributed sources of power or com20 bined heat and power generation. 

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

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

23 or other organized group or community, including any 

24 Alaskan Native village or regional or village corporation 

25 as defined in or established pursuant to the Alaska Native 
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1 Claims Settlement Act (43 U.S.C. 1601 et seq.), that is rec2 ognized as eligible for the special programs and services 

3 provided by the United States to Indians because of their 

4 status as Indians. 

5 (d) AUTHORIZATION OF APPROPRIATIONS.—For the 

6 purposes of this section there are authorized to be appro7 priated to the Secretary of Energy $20,000,000 for each of 

8 fiscal years 2006 through 2008. 

9 Subtitle C—Energy Efficient 

10 Products 

11 SEC. 131. ENERGY STAR PROGRAM. 

12 (a) AMENDMENT.—The Energy Policy and Conserva13 tion Act (42 U.S.C. 6201 et seq.) is amended by inserting 

14 the following after section 324: 

15 ‘‘SEC. 324A. ENERGY STAR PROGRAM. 

16 ‘‘There is established at the Department of Energy and 

17 the Environmental Protection Agency a voluntary program 

18 to identify and promote energy-efficient products and build19 ings in order to reduce energy consumption, improve energy 

20 security, and reduce pollution through voluntary labeling 

21 of or other forms of communication about products and 

22 buildings that meet the highest energy efficiency standards. 

23 Responsibilities under the program shall be divided between 

24 the Department of Energy and the Environmental Protec-
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1 tion Agency consistent with the terms of agreements between 

2 the 2 agencies. The Administrator and the Secretary shall— 

3 ‘‘(1) promote Energy Star compliant technologies 

4 as the preferred technologies in the marketplace for 

5 achieving energy efficiency and to reduce pollution; 

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

7 Energy Star label, including special outreach to small 

8 businesses; 

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

10 label; 

11 ‘‘(4) solicit comments from interested parties 

12 prior to establishing or revising an Energy Star 

13 product category, specification, or criterion (or effec14 tive dates for any of the foregoing); 

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

16 category, specification, or criterion, provide reason17 able notice to interested parties of any changes (in18 cluding effective dates) in product categories, speci19 fications, or criteria along with an explanation of 

20 such changes and, where appropriate, responses to 

21 comments submitted by interested parties; and 

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

23 be 9 months, unless the Agency or Department deter24 mines otherwise) prior to the effective date for a new 

25 or a significant revision to a product category, speci-
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1 fication, or criterion, taking into account the timing 

2 requirements of the manufacturing, product mar3 keting, and distribution process for the specific prod4 uct addressed.’’. 

5 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

6 contents of the Energy Policy and Conservation Act is 

7 amended by inserting after the item relating to section 324 

8 the following new item: 

‘‘Sec. 324A. Energy Star program.’’. 

9 SEC. 132. HVAC MAINTENANCE CONSUMER EDUCATION 

10 PROGRAM. 

11 Section 337 of the Energy Policy and Conservation Act 

12 (42 U.S.C. 6307) is amended by adding at the end the fol13 lowing: 

14 ‘‘(c) HVAC MAINTENANCE.—For the purpose of ensur15 ing that installed air conditioning and heating systems op16 erate at their maximum rated efficiency levels, the Sec17 retary shall, not later than 180 days after the date of enact18 ment of this subsection, carry out a program to educate 

19 homeowners and small business owners concerning the en20 ergy savings resulting from properly conducted mainte21 nance of air conditioning, heating, and ventilating systems. 

22 The Secretary shall carry out the program in a cost-shared 

23 manner in cooperation with the Administrator of the Envi24 ronmental Protection Agency and such other entities as the 

25 Secretary considers appropriate, including industry trade 
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1 associations, industry members, and energy efficiency orga2 nizations. 

3 ‘‘(d) SMALL BUSINESS EDUCATION AND ASSIST4 ANCE.—The Administrator of the Small Business Adminis5 tration, in consultation with the Secretary of Energy and 

6 the Administrator of the Environmental Protection Agency, 

7 shall develop and coordinate a Government-wide program, 

8 building on the existing Energy Star for Small Business 

9 Program, to assist small businesses to become more energy 

10 efficient, understand the cost savings obtainable through ef11 ficiencies, and identify financing options for energy effi12 ciency upgrades. The Secretary and the Administrator of 

13 the Small Business Administration shall make the program 

14 information available directly to small businesses and 

15 through other Federal agencies, including the Federal 

16 Emergency Management Program and the Department of 

17 Agriculture.’’. 

18 SEC. 133. ENERGY CONSERVATION STANDARDS FOR ADDI19 TIONAL PRODUCTS. 

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

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

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

23 and adding at the end the following: ‘‘but does not in24 clude any lamp specifically designed to be used for 

25 special purpose applications and that is unlikely to 
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1 be used in general purpose applications such as those 

2 described in subparagraph (D), and also does not in3 clude any lamp not described in subparagraph (D) 

4 that is excluded by the Secretary, by rule, because the 

5 lamp is designed for special applications and is un6 likely to be used in general purpose applications.’’; 

7 and 

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

9 ‘‘(32) The term ‘battery charger’ means a device 

10 that charges batteries for consumer products and in11 cludes battery chargers embedded in other consumer 

12 products. 

13 ‘‘(33) The term ‘commercial refrigerators, freez14 ers, and refrigerator-freezers’ means refrigerators, 

15 freezers, or refrigerator-freezers that— 

16 ‘‘(A) are not consumer products regulated 

17 under this Act; and 

18 ‘‘(B) incorporate most components involved 

19 in the vapor-compression cycle and the refrig20 erated compartment in a single package. 

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

22 an external power supply circuit that is used to con23 vert household electric current into either DC current 

24 or lower-voltage AC current to operate a consumer 

25 product. 
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1 ‘‘(35) The term ‘illuminated exit sign’ means a 

2 sign that— 

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

4 place to identify an exit; and 

5 ‘‘(B) consists of an electrically powered in6 tegral light source that illuminates the legend 

7 ‘EXIT’ and any directional indicators and pro8 vides contrast between the legend, any direc9 tional indicators, and the background. 

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

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

12 transformer that— 

13 ‘‘(i) has an input voltage of 34.5 kilovolts or 

14 less; 

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

16 less; and 

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

18 of 60 Hertz. 

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

20 not include— 

21 ‘‘(i) transformers with multiple voltage 

22 taps, with the highest voltage tap equaling at 

23 least 20 percent more than the lowest voltage tap; 

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

25 known as drive transformers, rectifier trans-
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1 formers, auto-transformers, Uninterruptible 

2 Power System transformers, impedance trans3 formers, regulating transformers, sealed and non4 ventilating transformers, machine tool trans5 formers, welding transformers, grounding trans6 formers, or testing transformers, that are de7 signed to be used in a special purpose applica8 tion and are unlikely to be used in general pur9 pose applications; or 

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

11 (ii) that is excluded by the Secretary by rule be12 cause— 

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

14 special application; 

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

16 used in general purpose applications; and 

17 ‘‘(III) the application of standards to 

18 the transformer would not result in signifi19 cant energy savings. 

20 ‘‘(37) The term ‘low-voltage dry-type distribution 

21 transformer’ means a distribution transformer that— 

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

23 less; 

24 ‘‘(B) is air-cooled; and 

25 ‘‘(C) does not use oil as a coolant. 
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1 ‘‘(38) The term ‘standby mode’ means the lowest 

2 power consumption mode that— 

3 ‘‘(A) cannot be switched off or influenced by 

4 the user; and 

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

6 when an appliance is connected to the main elec7 tricity supply and used in accordance with the 

8 manufacturer’s instructions, 

9 as defined on an individual product basis by the Sec10 retary. 

11 ‘‘(39) The term ‘torchiere’ means a portable elec12 tric lamp with a reflector bowl that directs light up13 ward so as to give indirect illumination. 

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

15 standard 8-inch (200mm) or 12-inch (300mm) traffic 

16 signal indication, consisting of a light source, a lens, 

17 and all other parts necessary for operation, that com18 municates movement messages to drivers through red, 

19 amber, and green colors. 

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

21 consisting of 2 or more coils of insulated wire that 

22 transfers alternating current by electromagnetic in23 duction from 1 coil to another to change the original 

24 voltage or current value. 
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1 ‘‘(42) The term ‘unit heater’ means a self-con2 tained fan-type heater designed to be installed within 

3 the heated space, except that such term does not in4 clude a warm air furnace. 

5 ‘‘(43) The term ‘ceiling fan’ means a non-port6 able device that is suspended from a ceiling for circu7 lating air via the rotation of fan blades. 

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

9 equipment designed to provide light from a ceiling 

10 fan which can be— 

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

12 attached to the ceiling fan prior to the time of 

13 retail sale; or 

14 ‘‘(B) attachable, such that at the time of re15 tail sale the equipment is not physically attached 

16 to the ceiling fan, but may be included inside the 

17 ceiling fan package at the time of sale or sold 

18 separately for subsequent attachment to the 

19 fan.’’. 

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

21 Policy and Conservation Act (42 U.S.C. 6293) is amend22 ed— 

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

24 following: 
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1 ‘‘(9) Test procedures for illuminated exit signs shall 

2 be based on the test method used under Version 2.0 of the 

3 Energy Star program of the Environmental Protection 

4 Agency for illuminated exit signs. 

5 ‘‘(10) Test procedures for distribution transformers 

6 and low voltage dry-type distribution transformers shall be 

7 based on the ‘Standard Test Method for Measuring the En8 ergy Consumption of Distribution Transformers’ prescribed 

9 by the National Electrical Manufacturers Association 

10 (NEMA TP 2–1998). The Secretary may review and revise 

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

12 procedure shall be deemed to be testing requirements pre13 scribed by the Secretary under section 346(a)(1) for dis14 tribution transformers for which the Secretary makes a de15 termination that energy conservation standards would be 

16 technologically feasible and economically justified, and 

17 would result in significant energy savings. 

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

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

20 program of the Environmental Protection Agency for traffic 

21 signal modules, as in effect on the date of enactment of this 

22 paragraph. 

23 ‘‘(12) Test procedures for medium base compact fluo24 rescent lamps shall be based on the test methods used under 

25 the August 9, 2001, version of the Energy Star program 
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1 of the Environmental Protection Agency and Department 

2 of Energy for compact fluorescent lamps. Covered products 

3 shall meet all test requirements for regulated parameters in 

4 section 325(bb). However, covered products may be mar5 keted prior to completion of lamp life and lumen mainte6 nance at 40 percent of rated life testing provided manufac7 turers document engineering predictions and analysis that 

8 support expected attainment of lumen maintenance at 40 

9 percent rated life and lamp life time. 

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

11 after the date of enactment of this paragraph, prescribe test12 ing requirements for ceiling fans and ceiling fan light 

13 kits.’’; and 

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

15 ‘‘(f) ADDITIONAL CONSUMER AND COMMERCIAL PROD16 UCTS.—The Secretary shall, not later than 24 months after 

17 the date of enactment of this subsection, prescribe testing 

18 requirements for suspended ceiling fans, refrigerated bottled 

19 or canned beverage vending machines, and commercial re20 frigerators, freezers, and refrigerator-freezers. Such testing 

21 requirements shall be based on existing test procedures used 

22 in industry to the extent practical and reasonable. In the 

23 case of suspended ceiling fans, such test procedures shall in24 clude efficiency at both maximum output and at an output 

25 no more than 50 percent of the maximum output.’’. 
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1 (c) NEW STANDARDS.—Section 325 of the Energy Pol2 icy and Conservation Act (42 U.S.C. 6295) is amended by 

3 adding at the end the following: 

4 ‘‘(u) BATTERY CHARGER AND EXTERNAL POWER SUP5 PLY 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 and 

13 test procedures used for measuring energy consump14 tion in standby mode and other modes and assess the 

15 current and projected future market for battery char16 gers and external power supplies. This assessment 

17 shall include estimates of the significance of potential 

18 energy savings from technical improvements to these 

19 products and suggested product classes for standards. 

20 Prior to the end of this time period, the Secretary 

21 shall hold a scoping workshop to discuss and receive 

22 comments on plans for developing energy conservation 

23 standards for energy use for these products. 

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

25 the date of enactment of this subsection, issue a final 
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1 rule that determines whether energy conservation 

2 standards shall be issued for battery chargers and ex3 ternal power supplies or classes thereof. For each 

4 product class, any such standards shall be set at the 

5 lowest level of energy use that— 

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

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

8 ‘‘(ii) will result in significant overall an9 nual energy savings, considering both standby 

10 mode and other operating modes. 

11 ‘‘(2) REVIEW OF STANDBY ENERGY USE IN COV12 ERED PRODUCTS.—In determining pursuant to sec13 tion 323 whether test procedures and energy conserva14 tion standards pursuant to this section should be re15 vised, the Secretary shall consider, for covered prod16 ucts that are major sources of standby mode energy 

17 consumption, whether to incorporate standby mode 

18 into such test procedures and energy conservation 

19 standards, taking into account, among other relevant 

20 factors, standby mode power consumption compared 

21 to overall product energy consumption. 

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

23 propose a standard under this section unless the Sec24 retary has issued applicable test procedures for each 

25 product pursuant to section 323. 
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1 ‘‘(4) EFFECTIVE DATE.—Any standard issued 

2 under this subsection shall be applicable to products 

3 manufactured or imported 3 years after the date of 

4 issuance. 

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

6 and the Administrator shall collaborate and develop 

7 programs, including programs pursuant to section 

8 324A (relating to Energy Star Programs) and other 

9 voluntary industry agreements or codes of conduct, 

10 that are designed to reduce standby mode energy use. 

11 ‘‘(v) SUSPENDED CEILING FANS, VENDING MACHINES, 

12 AND COMMERCIAL REFRIGERATORS, FREEZERS, AND RE13 FRIGERATOR-FREEZERS.—The Secretary shall not later 

14 than 36 months after the date on which testing requirements 

15 are prescribed by the Secretary pursuant to section 323(f), 

16 prescribe, by rule, energy conservation standards for sus17 pended ceiling fans, refrigerated bottled or canned beverage 

18 vending machines, and commercial refrigerators, freezers, 

19 and refrigerator-freezers. In establishing standards under 

20 this subsection, the Secretary shall use the criteria and pro21 cedures contained in subsections (o) and (p). Any standard 

22 prescribed under this subsection shall apply to products 

23 manufactured 3 years after the date of publication of a final 

24 rule establishing such standard. 
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1 ‘‘(w) ILLUMINATED EXIT SIGNS.—Illuminated exit 

2 signs manufactured on or after January 1, 2006, shall meet 

3 the Version 2.0 Energy Star Program performance require4 ments for illuminated exit signs prescribed by the Environ5 mental Protection Agency. 

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

7 after January 1, 2006— 

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

9 power; and 

10 ‘‘(2) shall not be capable of operating with lamps 

11 that total more than 190 watts. 

12 ‘‘(y) LOW VOLTAGE DRY-TYPE DISTRIBUTION TRANS13 FORMERS.—The efficiency of low voltage dry-type distribu14 tion transformers manufactured on or after January 1, 

15 2006, shall be the Class I Efficiency Levels for distribution 

16 transformers specified in Table 4–2 of the ‘Guide for Deter17 mining Energy Efficiency for Distribution Transformers’ 

18 published by the National Electrical Manufacturers Asso19 ciation (NEMA TP–1–2002). 

20 ‘‘(z) TRAFFIC SIGNAL MODULES.—Traffic signal mod21 ules manufactured on or after January 1, 2006, shall meet 

22 the performance requirements used under the Energy Star 

23 program of the Environmental Protection Agency for traffic 

24 signals, as in effect on the date of enactment of this sub25 section, and shall be installed with compatible, electrically 
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1 connected signal control interface devices and conflict moni2 toring systems. 

3 ‘‘(aa) UNIT HEATERS.—Unit heaters manufactured on 

4 or after the date that is 3 years after the date of enactment 

5 of this subsection shall be equipped with an intermittent 

6 ignition device and shall have either power venting or an 

7 automatic flue damper. 

8 ‘‘(bb) MEDIUM BASE COMPACT FLUORESCENT

9 LAMPS.—Bare lamp and covered lamp (no reflector) me10 dium base compact fluorescent lamps manufactured on or 

11 after January 1, 2006, shall meet the following require12 ments prescribed by the August 9, 2001, version of the En13 ergy Star Program Requirements for Compact Fluorescent 

14 Lamps, Energy Star Eligibility Criteria, Energy-Effi15 ciency Specification issued by the Environmental Protec16 tion Agency and Department of Energy: minimum initial 

17 efficacy; lumen maintenance at 1000 hours; lumen mainte18 nance at 40 percent of rated life; rapid cycle stress test; 

19 and lamp life. The Secretary may, by rule, establish re20 quirements for color quality (CRI); power factor; operating 

21 frequency; and maximum allowable start time based on the 

22 requirements prescribed by the August 9, 2001, version of 

23 the Energy Star Program Requirements for Compact Fluo24 rescent Lamps. The Secretary may, by rule, revise these re-
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1 quirements or establish other requirements considering en2 ergy savings, cost effectiveness, and consumer satisfaction. 

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

4 ‘‘(1) to products for which standards are to be es5 tablished under subsections (u) and (v) on the date on 

6 which a final rule is issued by the Department of En7 ergy, except that any State or local standards pre8 scribed or enacted for any such product prior to the 

9 date on which such final rule is issued shall not be 

10 preempted until the standard established under sub11 section (u) or (v) for that product takes effect; and 

12 ‘‘(2) to products for which standards are estab13 lished under subsections (w) through (bb) on the date 

14 of enactment of those subsections, except that any 

15 State or local standards prescribed or enacted prior 

16 to the date of enactment of those subsections shall not 

17 be preempted until the standards established under 

18 subsections (w) through (bb) take effect. 

19 ‘‘(dd) CEILING FANS.— 

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

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

22 features: 

23 ‘‘(A) Lighting controls operate independ24 ently from fan speed controls. 
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1 ‘‘(B) Adjustable speed controls (either more 

2 than 1 speed or variable speed). 

3 ‘‘(C) The capability of reversible fan action, 

4 except for fans sold for industrial applications, 

5 outdoor applications, and where safety standards 

6 would be violated by the use of the reversible 

7 mode. The Secretary may promulgate regulations 

8 to define in greater detail the exceptions pro9 vided under this subparagraph but may not sub10 stantively expand the exceptions. 

11 ‘‘(2) REVISED STANDARDS.— 

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

13 provision of this Act, if the requirements of sub14 sections (o) and (p) are met, the Secretary may 

15 consider and prescribe energy efficiency or en16 ergy use standards for electricity used by ceiling 

17 fans to circulate air in a room. 

18 ‘‘(B) SPECIAL CONSIDERATION.—If the Sec19 retary sets such standards, the Secretary shall 

20 consider— 

21 ‘‘(i) exempting or setting different 

22 standards for certain product classes for 

23 which the primary standards are not tech24 nically feasible or economically justified; 

25 and 
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1 ‘‘(ii) establishing separate exempted 

2 product classes for highly decorative fans for 

3 which air movement performance is a sec4 ondary design feature. 

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

6 standard prescribed under this subsection shall 

7 apply to products manufactured on or after the 

8 date that is 3 years after the date of publication 

9 of a final rule establishing the standard.’’. 

10 (d) RESIDENTIAL FURNACE FANS.—Section 325(f)(3) 

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

12 6295(f)(3)) is amended by adding the following new sub13 paragraph at the end: 

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

15 Secretary may consider, and prescribe, if the requirements 

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

17 or energy use standards for electricity used for purposes of 

18 circulating air through duct work.’’. 

19 SEC. 134. ENERGY LABELING. 

20 (a) RULEMAKING ON EFFECTIVENESS OF CONSUMER

21 PRODUCT LABELING.—Section 324(a)(2) of the Energy Pol22 icy and Conservation Act (42 U.S.C. 6294(a)(2)) is amend23 ed by adding at the end the following: 

24 ‘‘(F) Not later than 3 months after the date of enact25 ment of this subparagraph, the Commission shall initiate 
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1 a rulemaking to consider the effectiveness of the current con2 sumer products labeling program in assisting consumers in 

3 making purchasing decisions and improving energy effi4 ciency and to consider changes to the labeling rules that 

5 would improve the effectiveness of consumer product labels. 

6 Such rulemaking shall be completed not later than 2 years 

7 after the date of enactment of this subparagraph. 

8 ‘‘(G)(i) Not later than 18 months after date of enact9 ment of this subparagraph, the Commission shall prescribe 

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

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

12 room. 

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

14 to products manufactured after the later of— 

15 ‘‘(I) January 1, 2009; or 

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

17 is prescribed.’’. 

18 (b) RULEMAKING ON LABELING FOR ADDITIONAL

19 PRODUCTS.—Section 324(a) of the Energy Policy and Con20 servation Act (42 U.S.C. 6294(a)) is further amended by 

21 adding at the end the following: 

22 ‘‘(5) The Secretary or the Commission, as appropriate, 

23 may, for covered products referred to in subsections (u) 

24 through (aa) of section 325, prescribe, by rule, pursuant to 

25 this section, labeling requirements for such products after 
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1 a test procedure has been set pursuant to section 323. In 

2 the case of products to which TP–1 standards under section 

3 325(y) apply, labeling requirements shall be based on the 

4 ‘Standard for the Labeling of Distribution Transformer Ef5 ficiency’ prescribed by the National Electrical Manufactur6 ers Association (NEMA TP–3) as in effect upon the date 

7 of enactment of this paragraph.’’. 

8 SEC. 135. PREEMPTION. 

9 Section 327 of the Energy Policy and Conservation Act 

10 (42 U.S.C. 6297) is amended by adding at the end the fol11 lowing: 

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

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

14 standards prescribed or enacted for ceiling fans and ceiling 

15 fan light kits.’’. 

16 SEC. 136. STATE CONSUMER PRODUCT ENERGY EFFICIENCY 

17 STANDARDS. 

18 Section 327 of the Energy Policy and Conservation Act 

19 (42 U.S.C. 6297) is amended by adding at the end the fol20 lowing new subsection: 

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

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

23 of energy consumption or water use of any covered product 

24 during any period of time— 
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1 ‘‘(1) after the date which is 3 years after a Fed2 eral standard is required by law to be established or 

3 revised, but has not been established or revised; and 

4 ‘‘(2) before the date on which such Federal stand5 ard is established or revised.’’. 

6 Subtitle D—Public Housing 

7 SEC. 145. GRANTS FOR ENERGY-CONSERVING IMPROVE8 MENTS FOR ASSISTED HOUSING. 

9 Section 251(b)(1) of the National Energy Conservation 

10 Policy Act (42 U.S.C. 8231(1)) is amended— 

11 (1) by striking ‘‘financed with loans’’ and insert12 ing ‘‘assisted’’; 

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

14 ‘‘which are eligible multifamily housing projects (as 

15 such term is defined in section 512 of the Multifamily 

16 Assisted Housing Reform and Affordability Act of 

17 1997 (42 U.S.C. 1437f note)) and are subject to mort18 gage restructuring and rental assistance sufficiency 

19 plans under such Act,’’; and 

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

21 first sentence the following new sentence: ‘‘Such im22 provements may also include the installation of en23 ergy and water conserving fixtures and fittings that 

24 conform to the American Society of Mechanical Engi25 neers/American National Standards Institute stand-
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1 ards A112.19.2–1998 and A112.18.1–2000, or any re2 vision thereto, applicable at the time of installation.’’. 

3 SEC. 147. ENERGY-EFFICIENT APPLIANCES. 

4 In purchasing appliances, a public housing agency 

5 shall purchase energy-efficient appliances that are Energy 

6 Star products or FEMP-designated products, as such terms 

7 are defined in section 553 of the National Energy Conserva8 tion Policy Act (as amended by this title), unless the pur9 chase of energy-efficient appliances is not cost-effective to 

10 the agency. 

11 SEC. 149. ENERGY STRATEGY FOR HUD. 

12 The Secretary of Housing and Urban Development 

13 shall develop and implement an integrated strategy to re14 duce utility expenses through cost-effective energy conserva15 tion and efficiency measures and energy efficient design 

16 and construction of public and assisted housing. The energy 

17 strategy shall include the development of energy reduction 

18 goals and incentives for public housing agencies. The Sec19 retary shall submit a report to Congress, not later than 1 

20 year after the date of the enactment of this Act, on the en21 ergy strategy and the actions taken by the Department of 

22 Housing and Urban Development to monitor the energy 

23 usage of public housing agencies and shall submit an up24 date every 2 years thereafter on progress in implementing 

25 the strategy. 
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1 TITLE II—RENEWABLE ENERGY 

2 Subtitle A—General Provisions 

3 SEC. 201. ASSESSMENT OF RENEWABLE ENERGY RE4 SOURCES. 

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

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

7 year thereafter, the Secretary of Energy shall review the 

8 available assessments of renewable energy resources within 

9 the United States, including solar, wind, biomass, ocean 

10 (tidal, wave, current, and thermal), geothermal, and hydro11 electric energy resources, and undertake new assessments as 

12 necessary, taking into account changes in market condi13 tions, available technologies, and other relevant factors. 

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

15 after the date of enactment of this Act, and each year there16 after, the Secretary shall publish a report based on the as17 sessment under subsection (a). The report shall contain— 

18 (1) a detailed inventory describing the available 

19 amount and characteristics of the renewable energy 

20 resources; and 

21 (2) such other information as the Secretary be22 lieves would be useful in developing such renewable 

23 energy resources, including descriptions of sur24 rounding terrain, population and load centers, near25 by energy infrastructure, location of energy and water 
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1 resources, and available estimates of the costs needed 

2 to develop each resource, together with an identifica3 tion of any barriers to providing adequate trans4 mission for remote sources of renewable energy re5 sources to current and emerging markets, rec6 ommendations for removing or addressing such bar7 riers, and ways to provide access to the grid that do 

8 not unfairly disadvantage renewable or other energy 

9 producers. 

10 (c) AUTHORIZATION OF APPROPRIATIONS.—For the 

11 purposes of this section, there are authorized to be appro12 priated to the Secretary of Energy $10,000,000 for each of 

13 fiscal years 2006 through 2010. 

14 SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 

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

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

17 by striking ‘‘and which satisfies’’ and all that follows 

18 through ‘‘Secretary shall establish.’’ and inserting ‘‘. If there 

19 are insufficient appropriations to make full payments for 

20 electric production from all qualified renewable energy fa21 cilities in any given year, the Secretary shall assign 60 per22 cent of appropriated funds for that year to facilities that 

23 use solar, wind, geothermal, or closed-loop (dedicated energy 

24 crops) biomass technologies to generate electricity, and as25 sign the remaining 40 percent to other projects. The Sec-
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1 retary may, after transmitting to Congress an explanation 

2 of the reasons therefor, alter the percentage requirements of 

3 the preceding sentence.’’. 

4 (b) QUALIFIED RENEWABLE ENERGY FACILITY.—Sec5 tion 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 

6 13317(b)) is amended— 

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

8 all that follows through ‘‘nonprofit electrical coopera9 tive’’ and inserting ‘‘a not-for-profit electric coopera10 tive, a public utility described in section 115 of the 

11 Internal Revenue Code of 1986, a State, Common12 wealth, territory, or possession of the United States or 

13 the District of Columbia, or a political subdivision 

14 thereof, or an Indian tribal government or subdivi15 sion thereof,’’; and 

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

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

18 ‘‘wind, biomass,’’. 

19 (c) ELIGIBILITY WINDOW.—Section 1212(c) of the En20 ergy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended 

21 by striking ‘‘during the 10-fiscal year period beginning 

22 with the first full fiscal year occurring after the enactment 

23 of this section’’ and inserting ‘‘after October 1, 2005, and 

24 before October 1, 2015’’. 
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1 (d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of the 

2 Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is 

3 amended by inserting ‘‘landfill gas, livestock methane, 

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

5 biomass,’’. 

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

7 of 1992 (42 U.S.C. 13317(f)) is amended by striking ‘‘the 

8 expiration of’’ and all that follows through ‘‘of this section’’ 

9 and inserting ‘‘September 30, 2025’’. 

10 (f) AUTHORIZATION OF APPROPRIATIONS.—Section 

11 1212(g) of the Energy Policy Act of 1992 (42 U.S.C. 

12 13317(g)) is amended to read as follows: 

13 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.— 

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

15 there are authorized to be appropriated such sums as 

16 may be necessary to carry out this section for fiscal 

17 years 2005 through 2025. 

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

19 available under paragraph (1) shall remain available 

20 until expended.’’. 

21 SEC. 203. FEDERAL PURCHASE REQUIREMENT. 

22 (a) REQUIREMENT.—The President, acting through the 

23 Secretary of Energy, shall seek to ensure that, to the extent 

24 economically feasible and technically practicable, of the 

25 total amount of electric energy the Federal Government con-
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1 sumes during any fiscal year, the following amounts shall 

2 be renewable energy: 

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

4 through 2009. 

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

6 through 2012. 

7 (3) Not less than 7.5 percent in fiscal year 2013 

8 and each fiscal year thereafter. 

9 (b) DEFINITIONS.—In this section: 

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

11 solid, nonhazardous, cellulosic material that is de12 rived from— 

13 (A) any of the following forest-related re14 sources: mill residues, precommercial thinnings, 

15 slash, and brush, or nonmerchantable material; 

16 (B) solid wood waste materials, including 

17 waste pallets, crates, dunnage, manufacturing 

18 and construction wood wastes (other than pres19 sure-treated, chemically-treated, or painted wood 

20 wastes), and landscape or right-of-way tree trim21 mings, but not including municipal solid waste 

22 (garbage), gas derived from the biodegradation of 

23 solid waste, or paper that is commonly recycled; 

24 (C) agriculture wastes, including orchard 

25 tree crops, vineyard, grain, legumes, sugar, and 
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1 other crop by-products or residues, and livestock 

2 waste nutrients; or 

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

4 fuel for the production of electricity. 

5 (2) RENEWABLE ENERGY.—The term ‘‘renewable 

6 energy’’ means electric energy generated from solar, 

7 wind, biomass, landfill gas, ocean (tidal, wave, cur8 rent, and thermal), geothermal, municipal solid 

9 waste, or new hydroelectric generation capacity 

10 achieved from increased efficiency or additions of new 

11 capacity at an existing hydroelectric project. 

12 (c) CALCULATION.—For purposes of determining com13 pliance with the requirement of this section, the amount of 

14 renewable energy shall be doubled if— 

15 (1) the renewable energy is produced and used 

16 on-site at a Federal facility; 

17 (2) the renewable energy is produced on Federal 

18 lands and used at a Federal facility; or 

19 (3) the renewable energy is produced on Indian 

20 land as defined in title XXVI of the Energy Policy 

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

22 Federal facility. 

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

24 every 2 years thereafter, the Secretary of Energy shall pro-
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1 vide a report to Congress on the progress of the Federal Gov2 ernment in meeting the goals established by this section. 

3 SEC. 204. INSULAR AREAS ENERGY SECURITY. 

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

5 appropriations for certain insular areas of the United 

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

7 1980 (48 U.S.C. 1492), is amended— 

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

9 and inserting a semicolon; 

10 (2) by adding at the end of subsection (a) the fol11 lowing new paragraphs: 

12 ‘‘(5) electric power transmission and distribution 

13 lines in insular areas are inadequate to withstand 

14 damage caused by the hurricanes and typhoons which 

15 frequently occur in insular areas and such damage 

16 often costs millions of dollars to repair; and 

17 ‘‘(6) the refinement of renewable energy tech18 nologies since the publication of the 1982 Territorial 

19 Energy Assessment prepared pursuant to subsection 

20 (c) reveals the need to reassess the state of energy pro21 duction, consumption, infrastructure, reliance on im22 ported energy, opportunities for energy conservation 

23 and increased energy efficiency, and indigenous 

24 sources in regard to the insular areas.’’; 
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1 (3) by amending subsection (e) to read as fol2 lows: 

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

4 with the Secretary of Energy and the head of government 

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

6 subsection (c) by— 

7 ‘‘(A) updating the contents required by sub8 section (c); 

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

10 insular areas with the objective of reducing, to the ex11 tent feasible, their reliance on energy imports by the 

12 year 2012, increasing energy conservation and energy 

13 efficiency, and maximizing, to the extent feasible, use 

14 of indigenous energy sources; and 

15 ‘‘(C) drafting long-term energy transmission line 

16 plans for such insular areas with the objective that 

17 the maximum percentage feasible of electric power 

18 transmission and distribution lines in each insular 

19 area be protected from damage caused by hurricanes 

20 and typhoons. 

21 ‘‘(2) Not later than December 31, 2007, the Secretary 

22 of the Interior shall submit to Congress the updated plans 

23 for each insular area required by this subsection.’’; and 

24 (4) by amending subsection (g)(4) to read as fol25 lows: 
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1 ‘‘(4) POWER LINE GRANTS FOR INSULAR

2 AREAS.— 

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

4 Interior is authorized to make grants to govern5 ments of insular areas of the United States to 

6 carry out eligible projects to protect electric 

7 power transmission and distribution lines in 

8 such insular areas from damage caused by hurri9 canes and typhoons. 

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

11 may award grants under subparagraph (A) only 

12 to governments of insular areas of the United 

13 States that submit written project plans to the 

14 Secretary for projects that meet the following cri15 teria: 

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

17 electric power transmission and distribution 

18 lines located in 1 or more of the insular 

19 areas of the United States from damage 

20 caused by hurricanes and typhoons. 

21 ‘‘(ii) The project is likely to substan22 tially reduce the risk of future damage, 

23 hardship, loss, or suffering. 

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

25 problems that have been repetitive or that 
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1 pose a significant risk to public health and 

2 safety. 

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

4 more than the value of the reduction in di5 rect damage and other negative impacts 

6 that the project is designed to prevent or 

7 mitigate. The cost benefit analysis required 

8 by this criterion shall be computed on a net 

9 present value basis. 

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

11 consideration long-term changes to the areas 

12 and persons it is designed to protect and 

13 has manageable future maintenance and 

14 modification requirements. 

15 ‘‘(vi) The project plan includes an 

16 analysis of a range of options to address the 

17 problem it is designed to prevent or miti18 gate and a justification for the selection of 

19 the project in light of that analysis. 

20 ‘‘(vii) The applicant has demonstrated 

21 to the Secretary that the matching funds re22 quired by subparagraph (D) are available. 

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

24 under this paragraph, the Secretary shall give 
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1 priority to grants for projects which are likely 

2 to— 

3 ‘‘(i) have the greatest impact on reduc4 ing future disaster losses; and 

5 ‘‘(ii) best conform with plans that have 

6 been approved by the Federal Government 

7 or the government of the insular area where 

8 the project is to be carried out for develop9 ment or hazard mitigation for that insular 

10 area. 

11 ‘‘(D) MATCHING REQUIREMENT.—The Fed12 eral share of the cost for a project for which a 

13 grant is provided under this paragraph shall not 

14 exceed 75 percent of the total cost of that project. 

15 The non-Federal share of the cost may be pro16 vided in the form of cash or services. 

17 ‘‘(E) TREATMENT OF FUNDS FOR CERTAIN

18 PURPOSES.—Grants provided under this para19 graph shall not be considered as income, a re20 source, or a duplicative program when deter21 mining eligibility or benefit levels for Federal 

22 major disaster and emergency assistance. 

23 ‘‘(F) AUTHORIZATION OF APPROPRIA24 TIONS.—There are authorized to be appropriated 

25 to carry out this paragraph $5,000,000 for each 
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1 fiscal year beginning after the date of the enact2 ment of this paragraph.’’. 

3 SEC. 205. USE OF PHOTOVOLTAIC ENERGY IN PUBLIC 

4 BUILDINGS. 

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

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

7 is amended by adding at the end the following: 

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

9 BUILDINGS. 

10 ‘‘(a) PHOTOVOLTAIC ENERGY COMMERCIALIZATION

11 PROGRAM.— 

12 ‘‘(1) IN GENERAL.—The Secretary may establish 

13 a photovoltaic energy commercialization program for 

14 the procurement and installation of photovoltaic solar 

15 electric systems for electric production in new and ex16 isting public buildings. 

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

18 shall be to accomplish the following: 

19 ‘‘(A) To accelerate the growth of a commer20 cially viable photovoltaic industry to make this 

21 energy system available to the general public as 

22 an option which can reduce the national con23 sumption of fossil fuel. 

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

25 and costs of the Federal Government. 
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1 ‘‘(C) To attain the goal of installing solar 

2 energy systems in 20,000 Federal buildings by 

3 2010, as contained in the Federal Government’s 

4 Million Solar Roof Initiative of 1997. 

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

6 the Federal Government of life-cycle costing and 

7 innovative procurement methods. 

8 ‘‘(E) To develop program performance data 

9 to support policy decisions on future incentive 

10 programs with respect to energy. 

11 ‘‘(3) ACQUISITION OF PHOTOVOLTAIC SOLAR

12 ELECTRIC SYSTEMS.— 

13 ‘‘(A) IN GENERAL.—The program shall pro14 vide for the acquisition of photovoltaic solar elec15 tric systems and associated storage capability for 

16 use in public buildings. 

17 ‘‘(B) ACQUISITION LEVELS.—The acquisi18 tion of photovoltaic electric systems shall be at a 

19 level substantial enough to allow use of low-cost 

20 production techniques with at least 150 

21 megawatts (peak) cumulative acquired during 

22 the 5 years of the program. 

23 ‘‘(4) ADMINISTRATION.—The Secretary shall ad24 minister the program and shall— 
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1 ‘‘(A) issue such rules and regulations as 

2 may be appropriate to monitor and assess the 

3 performance and operation of photovoltaic solar 

4 electric systems installed pursuant to this sub5 section; 

6 ‘‘(B) develop innovative procurement strate7 gies for the acquisition of such systems; and 

8 ‘‘(C) transmit to Congress an annual report 

9 on the results of the program. 

10 ‘‘(b) PHOTOVOLTAIC SYSTEMS EVALUATION PRO11 GRAM.— 

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

13 the date of enactment of this section, the Secretary 

14 shall establish a photovoltaic solar energy systems 

15 evaluation program to evaluate such photovoltaic 

16 solar energy systems as are required in public build17 ings. 

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

19 photovoltaic solar energy systems under the program, 

20 the Secretary shall ensure that such systems reflect the 

21 most advanced technology. 

22 ‘‘(c) AUTHORIZATION OF APPROPRIATIONS.— 

23 ‘‘(1) PHOTOVOLTAIC ENERGY COMMERCIALIZA24 TION PROGRAM.—There are authorized to be appro25 priated to carry out subsection (a) $50,000,000 for 
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1 each of fiscal years 2006 through 2010. Such sums 

2 shall remain available until expended. 

3 ‘‘(2) PHOTOVOLTAIC SYSTEMS EVALUATION PRO4 GRAM.—There are authorized to be appropriated to 

5 carry out subsection (b) $10,000,000 for each of fiscal 

6 years 2006 through 2010. Such sums shall remain 

7 available until expended.’’. 

8 (b) CONFORMING AMENDMENT.—The table of sections 

9 for the National Energy Conservation Policy Act is amend10 ed by inserting after the item relating to section 569 the 

11 following: 

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

12 SEC. 206. GRANTS TO IMPROVE THE COMMERCIAL VALUE 

13 OF FOREST BIOMASS FOR ELECTRIC ENERGY, 

14 USEFUL HEAT, TRANSPORTATION FUELS, PE15 TROLEUM-BASED PRODUCT SUBSTITUTES, 

16 AND OTHER COMMERCIAL PURPOSES. 

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

18 (1) Thousands of communities in the United 

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

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

21 managed by the Secretary of Agriculture and the Sec22 retary of the Interior are at risk of catastrophic fire 

23 in the near future. The accumulation of heavy forest 

24 fuel loads continues to increase as a result of disease, 
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1 insect infestations, and drought, further raising the 

2 risk of fire each year. 

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

4 across all land ownerships are at risk to higher than 

5 normal mortality over the next 15 years from insect 

6 infestation and disease. High levels of tree mortality 

7 from insects and disease result in increased fire risk, 

8 loss of old growth, degraded watershed conditions, and 

9 changes in species diversity and productivity, as well 

10 as diminished fish and wildlife habitat and decreased 

11 timber values. 

12 (3) Preventive treatments such as removing fuel 

13 loading, ladder fuels, and hazard trees, planting 

14 proper species mix and restoring and protecting early 

15 successional habitat, and other specific restoration 

16 treatments designed to reduce the susceptibility of for17 est land, woodland, and rangeland to insect out18 breaks, disease, and catastrophic fire present the 

19 greatest opportunity for long-term forest health by 

20 creating a mosaic of species-mix and age distribution. 

21 Such prevention treatments are widely acknowledged 

22 to be more successful and cost effective than suppres23 sion treatments in the case of insects, disease, and 

24 fire. 
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1 (4) The byproducts of preventive treatment 

2 (wood, brush, thinnings, chips, slash, and other haz3 ardous fuels) removed from forest lands, woodlands 

4 and rangelands represent an abundant supply of bio5 mass for biomass-to-energy facilities and raw mate6 rial for business. There are currently few markets for 

7 the extraordinary volumes of byproducts being gen8 erated as a result of the necessary large-scale preven9 tive treatment activities. 

10 (5) The United States should— 

11 (A) promote economic and entrepreneurial 

12 opportunities in using byproducts removed 

13 through preventive treatment activities related to 

14 hazardous fuels reduction, disease, and insect in15 festation; and 

16 (B) develop and expand markets for tradi17 tionally underused wood and biomass as an out18 let for byproducts of preventive treatment activi19 ties. 

20 (b) DEFINITIONS.—In this section: 

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

22 and woody plants, including limbs, tops, needles, and 

23 other woody parts, and byproducts of preventive 

24 treatment, such as wood, brush, thinnings, chips, and 

25 slash, that are removed— 
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1 (A) to reduce hazardous fuels; or 

2 (B) to reduce the risk of or to contain dis3 ease or insect infestation. 

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

5 the meaning given the term in section 4(e) of the In6 dian Self-Determination and Education Assistance 

7 Act (25 U.S.C. 450b(e)). 

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

9 (A) an individual; 

10 (B) a community (as determined by the 

11 Secretary concerned); 

12 (C) an Indian tribe; 

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

14 corporation that is incorporated in the United 

15 States; and 

16 (E) a nonprofit organization. 

17 (4) PREFERRED COMMUNITY.—The term ‘‘pre18 ferred community’’ means— 

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

20 other similar unit of local government (as deter21 mined by the Secretary concerned) that— 

22 (i) has a population of not more than 

23 50,000 individuals; and 

24 (ii) the Secretary concerned, in the sole 

25 discretion of the Secretary concerned, deter-
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1 mines contains or is located near land, the 

2 condition of which is at significant risk of 

3 catastrophic wildfire, disease, or insect in4 festation or which suffers from disease or 

5 insect infestation; or 

6 (B) any county that— 

7 (i) is not contained within a metro8 politan statistical area; and 

9 (ii) the Secretary concerned, in the sole 

10 discretion of the Secretary concerned, deter11 mines contains or is located near land, the 

12 condition of which is at significant risk of 

13 catastrophic wildfire, disease, or insect in14 festation or which suffers from disease or 

15 insect infestation. 

16 (5) SECRETARY CONCERNED.—The term ‘‘Sec17 retary concerned’’ means— 

18 (A) the Secretary of Agriculture with re19 spect to National Forest System lands; and 

20 (B) the Secretary of the Interior with re21 spect to Federal lands under the jurisdiction of 

22 the Secretary of the Interior and Indian lands. 

23 (c) BIOMASS COMMERCIAL USE GRANT PROGRAM.— 

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

25 make grants to any person that owns or operates a 
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1 facility that uses biomass as a raw material to 

2 produce electric energy, sensible heat, transportation 

3 fuels, or substitutes for petroleum-based products to 

4 offset the costs incurred to purchase biomass for use 

5 by such facility. 

6 (2) GRANT AMOUNTS.—A grant under this sub7 section may not exceed $20 per green ton of biomass 

8 delivered. 

9 (3) MONITORING OF GRANT RECIPIENT ACTIVI10 TIES.—As a condition of a grant under this sub11 section, the grant recipient shall keep such records as 

12 the Secretary concerned may require to fully and cor13 rectly disclose the use of the grant funds and all 

14 transactions involved in the purchase of biomass. 

15 Upon notice by a representative of the Secretary con16 cerned, the grant recipient shall afford the representa17 tive reasonable access to the facility that purchases or 

18 uses biomass and an opportunity to examine the in19 ventory and records of the facility. 

20 (d) IMPROVED BIOMASS USE GRANT PROGRAM.— 

21 (1) IN GENERAL.—The Secretary concerned may 

22 make grants to persons to offset the cost of projects to 

23 develop or research opportunities to improve the use 

24 of, or add value to, biomass. In making such grants, 
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1 the Secretary concerned shall give preference to per2 sons in preferred communities. 

3 (2) SELECTION.—The Secretary concerned shall 

4 select a grant recipient under paragraph (1) after 

5 giving consideration to the anticipated public benefits 

6 of the project, including the potential to develop ther7 mal or electric energy resources or affordable energy, 

8 opportunities for the creation or expansion of small 

9 businesses and micro-businesses, and the potential for 

10 new job creation. 

11 (3) GRANT AMOUNT.—A grant under this sub12 section may not exceed $500,000. 

13 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

14 authorized to be appropriated $50,000,000 for each of the 

15 fiscal years 2006 through 2016 to carry out this section. 

16 (f) REPORT.—Not later than October 1, 2012, the Sec17 retary of Agriculture, in consultation with the Secretary of 

18 the Interior, shall submit to the Committee on Energy and 

19 Natural Resources and the Committee on Agriculture, Nu20 trition, and Forestry of the Senate and the Committee on 

21 Resources, the Committee on Energy and Commerce, and 

22 the Committee on Agriculture of the House of Representa23 tives a report describing the results of the grant programs 

24 authorized by this section. The report shall include the fol25 lowing: 
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1 (1) An identification of the size, type, and the 

2 use of biomass by persons that receive grants under 

3 this section. 

4 (2) The distance between the land from which the 

5 biomass was removed and the facility that used the 

6 biomass. 

7 (3) The economic impacts, particularly new job 

8 creation, resulting from the grants to and operation 

9 of the eligible operations. 

10 SEC. 207. BIOBASED PRODUCTS. 

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

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

13 by inserting ‘‘or such items that comply with the regula14 tions issued under section 103 of Public Law 100–556 (42 

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

16 SEC. 208. RENEWABLE ENERGY SECURITY. 

17 (a) WEATHERIZATION ASSISTANCE.—Section 415(c) of 

18 the Energy Conservation and Production Act (42 U.S.C. 

19 6865(c)) is amended— 

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

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

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

23 dwelling unit average provided in paragraph (1)’’ 

24 and inserting ‘‘dwelling unit averages provided in 

25 paragraphs (1) and (4)’’; and 
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1 (3) by adding at the end the following new para2 graphs: 

3 ‘‘(4) The expenditure of financial assistance provided 

4 under this part for labor, weatherization materials, and re5 lated matters for a renewable energy system shall not exceed 

6 an average of $3,000 per dwelling unit. 

7 ‘‘(5)(A) The Secretary shall by regulations— 

8 ‘‘(i) establish the criteria which are to be used in 

9 prescribing performance and quality standards under 

10 paragraph (6)(A)(ii) or in specifying any form of re11 newable energy under paragraph (6)(A)(i)(I); and 

12 ‘‘(ii) establish a procedure under which a manu13 facturer of an item may request the Secretary to cer14 tify that the item will be treated, for purposes of this 

15 paragraph, as a renewable energy system. 

16 ‘‘(B) The Secretary shall make a final determination 

17 with respect to any request filed under subparagraph 

18 (A)(ii) within 1 year after the filing of the request, together 

19 with any information required to be filed with such request 

20 under subparagraph (A)(ii). 

21 ‘‘(C) Each month the Secretary shall publish a report 

22 of any request under subparagraph (A)(ii) which has been 

23 denied during the preceding month and the reasons for the 

24 denial. 
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1 ‘‘(D) The Secretary shall not specify any form of re2 newable energy under paragraph (6)(A)(i)(I) unless the 

3 Secretary determines that— 

4 ‘‘(i) there will be a reduction in oil or natural 

5 gas consumption as a result of such specification; 

6 ‘‘(ii) such specification will not result in an in7 creased use of any item which is known to be, or rea8 sonably suspected to be, environmentally hazardous or 

9 a threat to public health or safety; and 

10 ‘‘(iii) available Federal subsidies do not make 

11 such specification unnecessary or inappropriate (in 

12 the light of the most advantageous allocation of eco13 nomic resources). 

14 ‘‘(6) In this subsection— 

15 ‘‘(A) the term ‘renewable energy system’ means a 

16 system which— 

17 ‘‘(i) when installed in connection with a 

18 dwelling, transmits or uses— 

19 ‘‘(I) solar energy, energy derived from 

20 the geothermal deposits, energy derived from 

21 biomass, or any other form of renewable en22 ergy which the Secretary specifies by regu23 lations, for the purpose of heating or cooling 

24 such dwelling or providing hot water or 

25 electricity for use within such dwelling; or 
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1 ‘‘(II) wind energy for nonbusiness resi2 dential purposes; 

3 ‘‘(ii) meets the performance and quality 

4 standards (if any) which have been prescribed by 

5 the Secretary by regulations; 

6 ‘‘(iii) in the case of a combustion rated sys7 tem, has a thermal efficiency rating of at least 

8 75 percent; and 

9 ‘‘(iv) in the case of a solar system, has a 

10 thermal efficiency rating of at least 15 percent; 

11 and 

12 ‘‘(B) the term ‘biomass’ means any organic mat13 ter 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 (b) DISTRICT HEATING AND COOLING PROGRAMS.— 

20 Section 172 of the Energy Policy Act of 1992 (42 U.S.C. 

21 13451 note) is amended— 

22 (1) in subsection (a)— 

23 (A) by striking ‘‘and’’ at the end of para24 graph (3); 
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1 (B) by striking the period at the end of 

2 paragraph (4) and inserting ‘‘; and’’; and 

3 (C) by adding at the end the following new 

4 paragraph: 

5 ‘‘(5) evaluate the use of renewable energy systems 

6 (as such term is defined in section 415(c) of the En7 ergy Conservation and Production Act (42 U.S.C. 

8 6865(c))) in residential buildings.’’; and 

9 (2) in subsection (b), by striking ‘‘this Act’’ and 

10 inserting ‘‘the Energy Policy Act of 2005’’. 

11 (c) DEFINITION OF BIOMASS.—Section 203(2) of the 

12 Biomass Energy and Alcohol Fuels Act of 1980 (42 U.S.C. 

13 8802(2)) is amended to read as follows: 

14 ‘‘(2) The term ‘biomass’ means any organic mat15 ter that is available on a renewable or recurring 

16 basis, including agricultural crops and trees, wood 

17 and wood wastes and residues, plants (including 

18 aquatic plants), grasses, residues, fibers, and animal 

19 wastes, municipal wastes, and other waste mate20 rials.’’. 

21 (d) REBATE PROGRAM.— 

22 (1) ESTABLISHMENT.—The Secretary of Energy 

23 shall establish a program providing rebates for con24 sumers for expenditures made for the installation of 
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1 a renewable energy system in connection with a 

2 dwelling unit or small business. 

3 (2) AMOUNT OF REBATE.—Rebates provided 

4 under the program established under paragraph (1) 

5 shall be in an amount not to exceed the lesser of— 

6 (A) 25 percent of the expenditures described 

7 in paragraph (1) made by the consumer; or 

8 (B) $3,000. 

9 (3) DEFINITION.—For purposes of this sub10 section, the term ‘‘renewable energy system’’ has the 

11 meaning given that term in section 415(c)(6)(A) of 

12 the Energy Conservation and Production Act (42 

13 U.S.C. 6865(c)(6)(A)), as added by subsection (a)(3) 

14 of this section. 

15 (4) AUTHORIZATION OF APPROPRIATIONS.— 

16 There are authorized to be appropriated to the Sec17 retary of Energy for carrying out this subsection, to 

18 remain available until expended— 

19 (A) $150,000,000 for fiscal year 2006; 

20 (B) $150,000,000 for fiscal year 2007; 

21 (C) $200,000,000 for fiscal year 2008; 

22 (D) $250,000,000 for fiscal year 2009; 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-
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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 sec7 tion 

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 insert13 ing after ‘‘adequate protection and utilization of such res14 ervation.’’ at the end of the first proviso the following: ‘‘The 

15 license applicant shall be entitled to a determination on the 

16 record, after opportunity for an expedited agency trial-type 

17 hearing of any disputed issues of material fact, with respect 

18 to such conditions. Such hearing may be conducted in ac19 cordance with procedures established by agency regulation 

20 in consultation with the Federal Energy Regulatory Com21 mission.’’. 

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-
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1 tled to a determination on the record, after opportunity for 

2 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 PRESCRIPTIONS.— 

8 Part I of the Federal Power Act (16 U.S.C. 791a et seq.) 

9 is amended by adding the following new section at the end 

10 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 of 

15 the department under whose supervision such reservation 

16 falls (referred to in this subsection as ‘the Secretary’) deems 

17 a condition to such license to be necessary under the first 

18 proviso of section 4(e), the license applicant may propose 

19 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 shall 

23 include in the license such alternative condition, if the Sec24 retary determines, based on substantial evidence provided 
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1 by the license applicant or otherwise available to the Sec2 retary, 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 record 

12 of the Commission proceeding with any condition under 

13 section 4(e) or alternative condition it accepts under this 

14 section, a written statement explaining the basis for such 

15 condition, and reason for not accepting any alternative con16 dition under this section. The written statement must dem17 onstrate that the Secretary gave equal consideration to the 

18 effects of the condition adopted and alternatives not accept19 ed on energy supply, distribution, cost, and use; flood con20 trol; navigation; water supply; and air quality (in addition 

21 to the preservation of other aspects of environmental qual22 ity); based on such information as may be available to the 

23 Secretary, including information voluntarily provided in 

24 a timely manner by the applicant and others. The Secretary 

25 shall also submit, together with the aforementioned written 
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1 statement, all studies, data, and other factual information 

2 available to the Secretary and relevant to the Secretary’s 

3 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 applicant 

23 or licensee may propose an alternative to such prescription 

24 to construct, maintain, or operate a fishway. 
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1 ‘‘(2) Notwithstanding section 18, the Secretary of the 

2 Interior or the Secretary of Commerce, as appropriate, shall 

3 accept and prescribe, and the Commission shall require, the 

4 proposed alternative referred to in paragraph (1), if the 

5 Secretary of the appropriate department determines, based 

6 on substantial evidence provided by the licensee or otherwise 

7 available to the Secretary, that such alternative— 

8 ‘‘(A) will be no less protective than the fishway 

9 initially prescribed by the Secretary; and 

10 ‘‘(B) will either— 

11 ‘‘(i) cost less to implement; or 

12 ‘‘(ii) result in improved operation of the 

13 project works for electricity production, 

14 as compared to the fishway initially deemed necessary 

15 by the Secretary. 

16 ‘‘(3) The Secretary concerned shall submit into the 

17 public record of the Commission proceeding with any pre18 scription under section 18 or alternative prescription it ac19 cepts under this section, a written statement explaining the 

20 basis for such prescription, and reason for not accepting 

21 any alternative prescription under this section. The written 

22 statement must demonstrate that the Secretary gave equal 

23 consideration to the effects of the condition adopted and al24 ternatives not accepted on energy supply, distribution, cost, 

25 and use; flood control; navigation; water supply; and air 
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1 quality (in addition to the preservation of other aspects of 

2 environmental quality); based on such information as may 

3 be available to the Secretary, including information volun4 tarily provided in a timely manner by the applicant and 

5 others. The Secretary shall also submit, together with the 

6 aforementioned written statement, all studies, data, and 

7 other factual information available to the Secretary and rel8 evant to the Secretary’s decision. 

9 ‘‘(4) Nothing in this section shall prohibit other inter10 ested parties from proposing alternative prescriptions. 

11 ‘‘(5) If the Secretary concerned does not accept an ap12 plicant’s alternative prescription under this section, and 

13 the Commission finds that the Secretary’s prescription 

14 would be inconsistent with the purposes of this part, or 

15 other applicable law, the Commission may refer the dispute 

16 to the Commission’s Dispute Resolution Service. The Dis17 pute Resolution Service shall consult with the Secretary and 

18 the Commission and issue a non-binding advisory within 

19 90 days. The Secretary may accept the Dispute Resolution 

20 Service advisory unless the Secretary finds that the rec21 ommendation will be less protective than the fishway ini22 tially prescribed by the Secretary. The Secretary shall sub23 mit the advisory and the Secretary’s final written deter24 mination into the record of the Commission’s proceeding.’’. 
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1 PART II—ADDITIONAL HYDROPOWER 

2 SEC. 241. HYDROELECTRIC PRODUCTION INCENTIVES. 

3 (a) INCENTIVE PAYMENTS.—For electric energy gen4 erated and sold by a qualified hydroelectric facility during 

5 the incentive period, the Secretary of Energy (referred to 

6 in this section as the ‘‘Secretary’’) shall make, subject to 

7 the availability of appropriations, incentive payments to 

8 the owner or operator of such facility. The amount of such 

9 payment made to any such owner or operator shall be as 

10 determined under subsection (e) of this section. Payments 

11 under this section may only be made upon receipt by the 

12 Secretary of an incentive payment application which estab13 lishes that the applicant is eligible to receive such payment 

14 and which satisfies such other requirements as the Secretary 

15 deems necessary. Such application shall be in such form, 

16 and shall be submitted at such time, as the Secretary shall 

17 establish. 

18 (b) DEFINITIONS.—For purposes of this section: 

19 (1) QUALIFIED HYDROELECTRIC FACILITY.—The 

20 term ‘‘qualified hydroelectric facility’’ means a tur21 bine or other generating device owned or solely oper22 ated by a non-Federal entity which generates hydro23 electric energy for sale and which is added to an ex24 isting dam or conduit. 

25 (2) EXISTING DAM OR CONDUIT.—The term ‘‘ex26 isting dam or conduit’’ means any dam or conduit 
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1 the construction of which was completed before the 

2 date of the enactment of this section and which does 

3 not require any construction or enlargement of im4 poundment or diversion structures (other than repair 

5 or reconstruction) in connection with the installation 

6 of a turbine or other generating device. 

7 (3) CONDUIT.—The term ‘‘conduit’’ has the same 

8 meaning as when used in section 30(a)(2) of the Fed9 eral Power Act (16 U.S.C. 823a(a)(2)). 

10 The terms defined in this subsection shall apply without 

11 regard to the hydroelectric kilowatt capacity of the facility 

12 concerned, without regard to whether the facility uses a dam 

13 owned by a governmental or nongovernmental entity, and 

14 without regard to whether the facility begins operation on 

15 or after the date of the enactment of this section. 

16 (c) ELIGIBILITY WINDOW.—Payments may be made 

17 under this section only for electric energy generated from 

18 a qualified hydroelectric facility which begins operation 

19 during the period of 10 fiscal years beginning with the first 

20 full fiscal year occurring after the date of enactment of this 

21 subtitle. 

22 (d) INCENTIVE PERIOD.—A qualified hydroelectric fa23 cility may receive payments under this section for a period 

24 of 10 fiscal years (referred to in this section as the ‘‘incen25 tive period’’). Such period shall begin with the fiscal year 
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1 in which electric energy generated from the facility is first 

2 eligible for such payments. 

3 (e) AMOUNT OF PAYMENT.— 

4 (1) IN GENERAL.—Payments made by the Sec5 retary under this section to the owner or operator of 

6 a qualified hydroelectric facility shall be based on the 

7 number of kilowatt hours of hydroelectric energy gen8 erated by the facility during the incentive period. For 

9 any such facility, the amount of such payment shall 

10 be 1.8 cents per kilowatt hour (adjusted as provided 

11 in paragraph (2)), subject to the availability of ap12 propriations under subsection (g), except that no fa13 cility may receive more than $750,000 in 1 calendar 

14 year. 

15 (2) ADJUSTMENTS.—The amount of the payment 

16 made to any person under this section as provided in 

17 paragraph (1) shall be adjusted for inflation for each 

18 fiscal year beginning after calendar year 2005 in the 

19 same manner as provided in the provisions of section 

20 29(d)(2)(B) of the Internal Revenue Code of 1986, ex21 cept that in applying such provisions the calendar 

22 year 2005 shall be substituted for calendar year 1979. 

23 (f) SUNSET.—No payment may be made under this 

24 section to any qualified hydroelectric facility after the expi25 ration of the period of 20 fiscal years beginning with the 
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1 first full fiscal year occurring after the date of enactment 

2 of this subtitle, and no payment may be made under this 

3 section to any such facility after a payment has been made 

4 with respect to such facility for a period of 10 fiscal years. 

5 (g) AUTHORIZATION OF APPROPRIATIONS.—There are 

6 authorized to be appropriated to the Secretary to carry out 

7 the purposes of this section $10,000,000 for each of the fiscal 

8 years 2006 through 2015. 

9 SEC. 242. HYDROELECTRIC EFFICIENCY IMPROVEMENT. 

10 (a) INCENTIVE PAYMENTS.—The Secretary of Energy 

11 shall make incentive payments to the owners or operators 

12 of hydroelectric facilities at existing dams to be used to 

13 make capital improvements in the facilities that are di14 rectly related to improving the efficiency of such facilities 

15 by at least 3 percent. 

16 (b) LIMITATIONS.—Incentive payments under this sec17 tion shall not exceed 10 percent of the costs of the capital 

18 improvement concerned and not more than 1 payment may 

19 be made with respect to improvements at a single facility. 

20 No payment in excess of $750,000 may be made with respect 

21 to improvements at a single facility. 

22 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

23 authorized to be appropriated to carry out this section not 

24 more than $10,000,000 for each of the fiscal years 2006 

25 through 2015. 
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1 SEC. 243. SMALL HYDROELECTRIC POWER PROJECTS. 

2 Section 408(a)(6) of the Public Utility Regulatory 

3 Policies Act of 1978 (16 U.S.C. 2708(a)(6)) is amended by 

4 striking ‘‘April 20, 1977’’ and inserting ‘‘March 4, 2003’’. 

5 SEC. 244. INCREASED HYDROELECTRIC GENERATION AT EX6 ISTING FEDERAL FACILITIES. 

7 (a) IN GENERAL.—The Secretary of the Interior and 

8 the Secretary of Energy, in consultation with the Secretary 

9 of the Army, shall jointly conduct a study of the potential 

10 for increasing electric power production capability at feder11 ally owned or operated water regulation, storage, and con12 veyance facilities. 

13 (b) CONTENT.—The study under this section shall in14 clude identification and description in detail of each facil15 ity that is capable, with or without modification, of pro16 ducing additional hydroelectric power, including esti17 mation of the existing potential for the facility to generate 

18 hydroelectric power. 

19 (c) REPORT.—The Secretaries shall submit to the Com20 mittees on Energy and Commerce, Resources, and Trans21 portation and Infrastructure of the House of Representa22 tives and the Committee on Energy and Natural Resources 

23 of the Senate a report on the findings, conclusions, and rec24 ommendations of the study under this section by not later 

25 than 18 months after the date of the enactment of this Act. 

26 The report shall include each of the following: 
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1 (1) The identifications, descriptions, and esti2 mations referred to in subsection (b). 

3 (2) A description of activities currently con4 ducted or considered, or that could be considered, to 

5 produce additional hydroelectric power from each 

6 identified facility. 

7 (3) A summary of prior actions taken by the 

8 Secretaries to produce additional hydroelectric power 

9 from each identified facility. 

10 (4) The costs to install, upgrade, or modify 

11 equipment or take other actions to produce additional 

12 hydroelectric power from each identified facility and 

13 the level of Federal power customer involvement in the 

14 determination of such costs. 

15 (5) The benefits that would be achieved by such 

16 installation, upgrade, modification, or other action, 

17 including quantified estimates of any additional en18 ergy or capacity from each facility identified under 

19 subsection (b). 

20 (6) A description of actions that are planned, 

21 underway, or might reasonably be considered to in22 crease hydroelectric power production by replacing 

23 turbine runners, by performing generator upgrades or 

24 rewinds, or construction of pumped storage facilities. 
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1 (7) The impact of increased hydroelectric power 

2 production on irrigation, fish, wildlife, Indian tribes, 

3 river health, water quality, navigation, recreation, 

4 fishing, and flood control. 

5 (8) Any additional recommendations to increase 

6 hydroelectric power production from, and reduce costs 

7 and improve efficiency at, federally owned or oper8 ated water regulation, storage, and conveyance facili9 ties. 

10 SEC. 245. SHIFT OF PROJECT LOADS TO OFF-PEAK PERI11 ODS. 

12 (a) IN GENERAL.—The Secretary of the Interior 

13 shall— 

14 (1) review electric power consumption by Bureau 

15 of Reclamation facilities for water pumping purposes; 

16 and 

17 (2) make such adjustments in such pumping as 

18 possible to minimize the amount of electric power 

19 consumed for such pumping during periods of peak 

20 electric power consumption, including by performing 

21 as much of such pumping as possible during off-peak 

22 hours at night. 

23 (b) CONSENT OF AFFECTED IRRIGATION CUSTOMERS

24 REQUIRED.—The Secretary may not under this section 

25 make any adjustment in pumping at a facility without the 
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1 consent of each person that has contracted with the United 

2 States for delivery of water from the facility for use for irri3 gation and that would be affected by such adjustment. 

4 (c) EXISTING OBLIGATIONS NOT AFFECTED.—This sec5 tion shall not be construed to affect any existing obligation 

6 of the Secretary to provide electric power, water, or other 

7 benefits from Bureau of Reclamation facilities, including 

8 recreational releases. 

9 TITLE III—OIL AND GAS 

10 Subtitle A—Petroleum Reserve and 

11 Home Heating Oil 

12 SEC. 301. PERMANENT AUTHORITY TO OPERATE THE STRA13 TEGIC PETROLEUM RESERVE AND OTHER EN14 ERGY PROGRAMS. 

15 (a) AMENDMENT TO TITLE I OF THE ENERGY POLICY

16 AND CONSERVATION ACT.—Title I of the Energy Policy and 

17 Conservation Act (42 U.S.C. 6211 et seq.) is amended— 

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

19 inserting the following: 

20 ‘‘AUTHORIZATION OF APPROPRIATIONS

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

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

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

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

26 and 
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1 (3) by striking part E (42 U.S.C. 6251; relating 

2 to the expiration of title I of the Act). 

3 (b) AMENDMENT TO TITLE II OF THE ENERGY POLICY

4 AND CONSERVATION ACT.—Title II of the Energy Policy 

5 and Conservation Act (42 U.S.C. 6271 et seq.) is amend6 ed— 

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

8 6283) the following: 

9 ‘‘PART C—SUMMER FILL AND FUEL BUDGETING 

10 PROGRAMS’’; 

11 (2) by striking section 273(e) (42 U.S.C. 6283(e); 

12 relating to the expiration of summer fill and fuel 

13 budgeting programs); and 

14 (3) by striking part D (42 U.S.C. 6285; relating 

15 to the expiration of title II of the Act). 

16 (c) TECHNICAL AMENDMENTS.—The table of contents 

17 for the Energy Policy and Conservation Act is amended— 

18 (1) by amending part D of title I to read as fol19 lows: 

‘‘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.’’; 

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

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

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

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

2 title II. 

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

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

6 by striking all after ‘‘increases’’ through ‘‘mid-October 

7 through March’’ and inserting ‘‘by more than 60 percent 

8 over its 5-year rolling average for the months of mid-Octo9 ber through March (considered as a heating season aver10 age)’’. 

11 (e) FILL STRATEGIC PETROLEUM RESERVE TO CAPAC12 ITY.—The Secretary of Energy shall, as expeditiously as 

13 practicable, acquire petroleum in amounts sufficient to fill 

14 the Strategic Petroleum Reserve to the 1,000,000,000 barrel 

15 capacity authorized under section 154(a) of the Energy Pol16 icy and Conservation Act (42 U.S.C. 6234(a)), consistent 

17 with the provisions of sections 159 and 160 of such Act (42 

18 U.S.C. 6239, 6240). 

19 SEC. 302. NATIONAL OILHEAT RESEARCH ALLIANCE. 

20 Section 713 of the Energy Act of 2000 (42 U.S.C. 6201 

21 note) is amended by striking ‘‘4’’ and inserting ‘‘9’’. 

22 SEC. 303. SITE SELECTION. 

23 Not later than 1 year after the date of enactment of 

24 this Act, the Secretary of Energy shall complete a pro-
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1 ceeding to select, from sites that the Secretary has pre2 viously studied, sites necessary to enable acquisition by the 

3 Secretary of the full authorized volume of the Strategic Pe4 troleum Reserve. 

5 SEC. 304. SUSPENSION OF STRATEGIC PETROLEUM RE6 SERVE DELIVERIES. 

7 The Secretary of Energy shall suspend deliveries of 

8 royalty-in-kind oil to the Strategic Petroleum Reserve until 

9 the price of oil falls below $40 per barrel for 2 consecutive 

10 weeks on the New York Mercantile Exchange. 

11 Subtitle B—Production Incentives 

12 SEC. 320. LIQUEFACTION OR GASIFICATION NATURAL GAS 

13 TERMINALS. 

14 (a) SCOPE OF NATURAL GAS ACT.—Section 1(b) of the 

15 Natural Gas Act (15 U.S.C. 717(b)) is amended by insert16 ing ‘‘and to the importation or exportation of natural gas 

17 in foreign commerce and to persons engaged in such impor18 tation or exportation,’’ after ‘‘such transportation or sale,’’. 

19 (b) DEFINITION.—Section 2 of the Natural Gas Act (15 

20 U.S.C. 717a) is amended by adding at the end the following 

21 new paragraph: 

22 ‘‘(11) ‘Liquefaction or gasification natural gas 

23 terminal’ includes all facilities located onshore or in 

24 State waters that are used to receive, unload, load, 

25 store, transport, gasify, liquefy, or process natural gas 
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1 that is imported to the United States from a foreign 

2 country, exported to a foreign country from the 

3 United States, or transported in interstate commerce 

4 by waterborne tanker, but does not include— 

5 ‘‘(A) waterborne tankers used to deliver nat6 ural gas to or from any such facility; or 

7 ‘‘(B) any pipeline or storage facility subject 

8 to the jurisdiction of the Commission under sec9 tion 7.’’. 

10 (c) AUTHORIZATION FOR CONSTRUCTION, EXPANSION, 

11 OR OPERATION OF LIQUEFACTION OR GASIFICATION NAT12 URAL GAS TERMINALS.—(1) The title for section 3 of the 

13 Natural Gas Act (15 U.S.C. 717b) is amended by inserting 

14 ‘‘; LIQUEFACTION OR GASIFICATION NATURAL GAS TERMI15 NALS’’ after ‘‘EXPORTATION OR IMPORTATION OF NATURAL

16 GAS’’. 

17 (2) Section 3 of the Natural Gas Act (15 U.S.C. 717b) 

18 is amended by adding at the end the following: 

19 ‘‘(d) AUTHORIZATION FOR CONSTRUCTION, EXPAN20 SION, OR OPERATION OF LIQUEFACTION OR GASIFICATION

21 NATURAL GAS TERMINALS.— 

22 ‘‘(1) COMMISSION AUTHORIZATION REQUIRED.— 

23 No person shall construct, expand, or operate a lique24 faction or gasification natural gas terminal without 
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1 an order from the Commission authorizing such per2 son to do so. 

3 ‘‘(2) AUTHORIZATION PROCEDURES.— 

4 ‘‘(A) NOTICE AND HEARING.—Upon the fil5 ing of any application to construct, expand, or 

6 operate a liquefaction or gasification natural gas 

7 terminal, the Commission shall— 

8 ‘‘(i) set the matter for hearing; 

9 ‘‘(ii) give reasonable notice of the hear10 ing to all interested persons, including the 

11 State commission of the State in which the 

12 liquefaction or gasification natural gas ter13 minal is located; 

14 ‘‘(iii) decide the matter in accordance 

15 with this subsection; and 

16 ‘‘(iv) issue or deny the appropriate 

17 order accordingly. 

18 ‘‘(B) DESIGNATION AS LEAD AGENCY.— 

19 ‘‘(i) IN GENERAL.—The Commission 

20 shall act as the lead agency for the purposes 

21 of coordinating all applicable Federal au22 thorizations and for the purposes of com23 plying with the National Environmental 

24 Policy Act of 1969 (42 U.S.C. 4312 et seq.) 
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1 for a liquefaction or gasification natural 

2 gas terminal. 

3 ‘‘(ii) OTHER AGENCIES.—Each Federal 

4 agency considering an aspect of the con5 struction, expansion, or operation of a liq6 uefaction or gasification natural gas ter7 minal shall cooperate with the Commission 

8 and comply with the deadlines established 

9 by the Commission. 

10 ‘‘(C) SCHEDULE.— 

11 ‘‘(i) COMMISSION AUTHORITY TO SET

12 SCHEDULE.—The Commission shall estab13 lish a schedule for all Federal and State ad14 ministrative proceedings required under au15 thority of Federal law to construct, expand, 

16 or operate a liquefaction or gasification 

17 natural gas terminal. In establishing the 

18 schedule, the Commission shall— 

19 ‘‘(I) ensure expeditious completion 

20 of all such proceedings; and 

21 ‘‘(II) accommodate the applicable 

22 schedules established by Federal law for 

23 such proceedings. 

24 ‘‘(ii) FAILURE TO MEET SCHEDULE.— 

25 If a Federal or State administrative agency 
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1 does not complete a proceeding for an ap2 proval that is required before a person may 

3 construct, expand, or operate the lique4 faction or gasification natural gas terminal, 

5 in accordance with the schedule established 

6 by the Commission under this subpara7 graph, and if— 

8 ‘‘(I) a determination has been 

9 made by the Court pursuant to section 

10 19(d) that such delay is unreasonable; 

11 and 

12 ‘‘(II) the agency has failed to act 

13 on any remand by the Court within 

14 the deadline set by the Court, 

15 that approval may be conclusively presumed 

16 by the Commission. 

17 ‘‘(D) EXCLUSIVE RECORD.—The Commis18 sion shall, with the cooperation of Federal and 

19 State administrative agencies and officials, 

20 maintain a complete consolidated record of all 

21 decisions made or actions taken by the Commis22 sion or by a Federal administrative agency or 

23 officer (or State administrative agency or officer 

24 acting under delegated Federal authority) with 

25 respect to the construction, expansion, or oper-
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1 ation of a liquefaction or gasification natural 

2 gas terminal. Such record shall be the exclusive 

3 record for any Federal administrative proceeding 

4 that is an appeal or review of any such decision 

5 made or action taken. 

6 ‘‘(E) STATE AND LOCAL SAFETY CONSIDER7 ATIONS.— 

8 ‘‘(i) IN GENERAL.—The Commission 

9 shall consult with the State commission of 

10 the State in which the liquefaction or gasifi11 cation natural gas terminal is located re12 garding State and local safety consider13 ations prior to issuing an order pursuant to 

14 this subsection and consistent with the 

15 schedule established under subparagraph 

16 (C). 

17 ‘‘(ii) STATE SAFETY INSPECTIONS.— 

18 The State commission of the State in which 

19 a liquefaction or gasification natural gas 

20 terminal is located may, after the terminal 

21 is operational, conduct safety inspections 

22 with respect to the liquefaction or gasifi23 cation natural gas terminal if— 
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1 ‘‘(I) the State commission pro2 vides written notice to the Commission 

3 of its intention to do so; and 

4 ‘‘(II) the inspections will be car5 ried out in conformance with Federal 

6 regulations and guidelines. 

7 Enforcement of any safety violation discov8 ered by a State commission pursuant to this 

9 clause shall be carried out by Federal offi10 cials. The Commission shall take appro11 priate action in response to a report of a 

12 violation not later that 90 days after receiv13 ing such report. 

14 ‘‘(iii) STATE AND LOCAL SAFETY CON15 SIDERATIONS.—For the purposes of this 

16 subparagraph, State and local safety con17 siderations include— 

18 ‘‘(I) the kind and use of the facil19 ity; 

20 ‘‘(II) the existing and projected 

21 population and demographic charac22 teristics of the location; 

23 ‘‘(III) the existing and proposed 

24 land use near the location; 
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1 ‘‘(IV) the natural and physical 

2 aspects of the location; 

3 ‘‘(V) the medical, law enforce4 ment, and fire prevention capabilities 

5 near the location that can respond at 

6 the facility; and 

7 ‘‘(VI) the feasibility of remote 

8 siting. 

9 ‘‘(3) ISSUANCE OF COMMISSION ORDER.— 

10 ‘‘(A) IN GENERAL.—The Commission shall 

11 issue an order authorizing, in whole or in part, 

12 the construction, expansion, or operation covered 

13 by the application to any qualified applicant— 

14 ‘‘(i) unless the Commission finds such 

15 actions or operations will not be consistent 

16 with the public interest; and 

17 ‘‘(ii) if the Commission has found that 

18 the applicant is— 

19 ‘‘(I) able and willing to carry out 

20 the actions and operations proposed; 

21 and 

22 ‘‘(II) willing to conform to the 

23 provisions of this Act and any require24 ments, rules, and regulations of the 

25 Commission set forth under this Act. 
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1 ‘‘(B) TERMS AND CONDITIONS.—The Com2 mission may by its order grant an application, 

3 in whole or in part, with such modification and 

4 upon such terms and conditions as the Commis5 sion may find necessary or appropriate. 

6 ‘‘(C) LIMITATIONS ON TERMS AND CONDI7 TIONS TO COMMISSION ORDER.— 

8 ‘‘(i) IN GENERAL.—Any Commission 

9 order issued pursuant to this subsection be10 fore January 1, 2011, shall not be condi11 tioned on— 

12 ‘‘(I) a requirement that the lique13 faction or gasification natural gas ter14 minal offer service to persons other 

15 than the person, or any affiliate there16 of, securing the order; or 

17 ‘‘(II) any regulation of the lique18 faction or gasification natural gas ter19 minal’s rates, charges, terms, or condi20 tions of service. 

21 ‘‘(ii) INAPPLICABLE TO TERMINAL EXIT

22 PIPELINE.—Clause (i) shall not apply to 

23 any pipeline subject to the jurisdiction of 

24 the Commission under section 7 exiting a 
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1 liquefaction or gasification natural gas ter2 minal. 

3 ‘‘(iii) EXPANSION OF REGULATED TER4 MINAL.—An order issued under this para5 graph that relates to an expansion of an ex6 isting liquefaction or gasification natural 

7 gas terminal, where any portion of the ex8 isting terminal continues to be subject to 

9 Commission regulation of rates, charges, 

10 terms, or conditions of service, may not re11 sult in— 

12 ‘‘(I) subsidization of the expan13 sion by regulated terminal users; 

14 ‘‘(II) degradation of service to the 

15 regulated terminal users; or 

16 ‘‘(III) undue discrimination 

17 against the regulated terminal users. 

18 ‘‘(iv) EXPIRATION.—This subpara19 graph shall cease to have effect on January 

20 1, 2021. 

21 ‘‘(4) DEFINITION.—For the purposes of this sub22 section, the term ‘Federal authorization’ means any 

23 authorization required under Federal law in order to 

24 construct, expand, or operate a liquefaction or gasifi25 cation natural gas terminal, including such permits, 
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1 special use authorizations, certifications, opinions, or 

2 other approvals as may be required, whether issued by 

3 a Federal or State agency.’’. 

4 (d) JUDICIAL REVIEW.—Section 19 of the Natural Gas 

5 Act (15 U.S.C. 717r) is amended by adding at the end the 

6 following: 

7 ‘‘(d) JUDICIAL REVIEW.— 

8 ‘‘(1) IN GENERAL.—The United States Court of 

9 Appeals for the District of Columbia Circuit shall 

10 have original and exclusive jurisdiction over any civil 

11 action— 

12 ‘‘(A) for review of any order, action, or fail13 ure to act of any Federal or State administrative 

14 agency to issue, condition, or deny any permit, 

15 license, concurrence, or approval required under 

16 Federal law for the construction, expansion, or 

17 operation of a liquefaction or gasification nat18 ural gas terminal; 

19 ‘‘(B) alleging unreasonable delay, in meet20 ing a schedule established under section 

21 3(d)(2)(C) or otherwise, by any Federal or State 

22 administrative agency in entering an order or 

23 taking other action described in subparagraph 

24 (A); or 
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1 ‘‘(C) challenging any decision made or ac2 tion taken by the Commission under section 3(d). 

3 ‘‘(2) COMMISSION ACTION.—For any action de4 scribed in this subsection, the Commission shall file 

5 with the Court the consolidated record maintained 

6 under section 3(d)(2)(D). 

7 ‘‘(3) COURT ACTION.—If the Court finds under 

8 paragraph (1)(A) or (B) that an order, action, failure 

9 to act, or delay is inconsistent with applicable Fed10 eral law, and would prevent the construction, expan11 sion, or operation of a liquefaction or gasification 

12 natural gas terminal, the order or action shall be 

13 deemed to have been issued or taken, subject to any 

14 conditions established by the Federal or State admin15 istrative agency upon remand from the Court, such 

16 conditions to be consistent with the order of the Court. 

17 If the Court remands the order or action to the Fed18 eral or State agency, the Court shall set a reasonable 

19 deadline for the agency to act on remand. 

20 ‘‘(4) UNREASONABLE DELAY.—For the purposes 

21 of paragraph (1)(B), the failure of an agency to issue 

22 a permit, license, concurrence, or approval within the 

23 later of— 
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1 ‘‘(A) 1 year after the date of filing of an ap2 plication for the permit, license, concurrence, or 

3 approval; or 

4 ‘‘(B) 60 days after the date of issuance of 

5 the order under section 3(d), 

6 shall be considered unreasonable delay unless the 

7 Court, for good cause shown, determines otherwise. 

8 ‘‘(5) EXPEDITED REVIEW.—The Court shall set 

9 any action brought under this subsection for expedited 

10 consideration.’’. 

11 SEC. 327. HYDRAULIC FRACTURING. 

12 Paragraph (1) of section 1421(d) of the Safe Drinking 

13 Water Act (42 U.S.C. 300h(d)) is amended to read as fol14 lows: 

15 ‘‘(1) UNDERGROUND INJECTION.—The term ‘un16 derground injection’— 

17 ‘‘(A) means the subsurface emplacement of 

18 fluids by well injection; and 

19 ‘‘(B) excludes— 

20 ‘‘(i) the underground injection of nat21 ural gas for purposes of storage; and 

22 ‘‘(ii) the underground injection of 

23 fluids or propping agents pursuant to hy24 draulic fracturing operations related to oil 

25 or gas production activities.’’. 
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1 SEC. 330. APPEALS RELATING TO PIPELINE CONSTRUCTION 

2 OR OFFSHORE MINERAL DEVELOPMENT 

3 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 authority 

9 for an interstate natural gas pipeline construction project, 

10 including construction of natural gas storage and liquefied 

11 natural gas facilities, shall use as its exclusive record for 

12 all purposes the record compiled by the Federal Energy Reg13 ulatory Commission pursuant to the Commission’s pro14 ceeding under sections 3 and 7 of the Natural Gas Act (15 

15 U.S.C. 717b, 717f). 

16 (b) SENSE OF CONGRESS.—It is the sense of Congress 

17 that all Federal and State agencies with jurisdiction over 

18 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 of 

22 the Natural Gas Act (15 U.S.C. 717b, 717f) to determine 

23 whether a certificate of public convenience and necessity 

24 should be issued for a proposed interstate natural gas pipe25 line. 
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1 (c) AGENCY OF RECORD, OFFSHORE MINERAL DEVEL2 OPMENT PROJECTS.—Any Federal administrative agency 

3 proceeding that is an appeal or review under section 319 

4 of the Coastal Zone Management Act of 1972 (16 U.S.C. 

5 1465), as amended by this Act, related to Federal authority 

6 for the permitting, approval, or other authorization of en7 ergy projects, including projects to explore, develop, or 

8 produce mineral resources in or underlying the outer Conti9 nental Shelf shall use as its exclusive record for all purposes 

10 (except for the filing of pleadings) the record compiled by 

11 the relevant Federal permitting agency. 

12 SEC. 333. NATURAL GAS MARKET TRANSPARENCY. 

13 The Natural Gas Act (15 U.S.C 717 et seq.) is amend14 ed— 

15 (1) by redesignating section 24 as section 25; 

16 and 

17 (2) by inserting after section 23 the following: 

18 ‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY. 

19 ‘‘(a) AUTHORIZATION.—(1) Not later than 180 days 

20 after the date of enactment of the Energy Policy Act of 

21 2005, the Federal Energy Regulatory Commission shall 

22 issue rules directing all entities subject to the Commission’s 

23 jurisdiction as provided under this Act to timely report in24 formation about the availability and prices of natural gas 
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1 sold at wholesale in interstate commerce to the Commission 

2 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 sub17 ject to any penalty under this section with respect to a vio18 lation occurring more than 3 years before the date on which 

19 the Federal Energy Regulatory Commission seeks to assess 

20 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. 
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1 ‘‘(2) Natural gas sales by a producer that are attrib2 utable to volumes of natural gas produced by such producer 

3 shall not be subject to the rules issued pursuant to this sec4 tion. 

5 ‘‘(3) The Commission shall not require natural gas 

6 producers, processors, or users who have a de minimis mar7 ket presence to participate in the reporting requirements 

8 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 lines 

24 of authority that ensure timely processing of oil and 

25 gas lease applications, surface use plans of operation, 
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1 and applications for permits to drill, including steps 

2 for processing surface use plans and applications for 

3 permits to drill consistent with the timelines estab4 lished by the amendment made by section 348; 

5 (2) eliminate duplication of effort by providing 

6 for coordination of planning and environmental com7 pliance efforts; and 

8 (3) ensure that lease stipulations are— 

9 (A) applied consistently; 

10 (B) coordinated between agencies; and 

11 (C) only as restrictive as necessary to pro12 tect the resource for which the stipulations are 

13 applied. 

14 (c) DATA RETRIEVAL SYSTEM.— 

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

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

17 Interior and the Secretary of Agriculture shall estab18 lish a joint data retrieval system that is capable of— 

19 (A) tracking applications and formal re20 quests made in accordance with procedures of the 

21 Federal onshore oil and gas leasing program; 

22 and 

23 (B) providing information regarding the 

24 status of the applications and requests within the 
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1 Department of the Interior and the Department 

2 of Agriculture. 

3 (2) RESOURCE MAPPING.—Not later than 2 years 

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

5 of the Interior and the Secretary of Agriculture shall 

6 establish a joint Geographic Information System 

7 mapping system for use in— 

8 (A) tracking surface resource values to aid 

9 in resource management; and 

10 (B) processing surface use plans of oper11 ation and applications for permits to drill. 

12 SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER 13211; AC13 TIONS CONCERNING REGULATIONS THAT 

14 SIGNIFICANTLY AFFECT ENERGY SUPPLY, 

15 DISTRIBUTION, OR USE. 

16 (a) REQUIREMENT.—The head of each Federal agency 

17 shall require that before the Federal agency takes any action 

18 that could have a significant adverse effect on the supply 

19 of domestic energy resources from Federal public land, the 

20 Federal agency taking the action shall comply with Execu21 tive Order No. 13211 (42 U.S.C. 13201 note). 

22 (b) GUIDANCE.—Not later than 180 days after the date 

23 of enactment of this Act, the Secretary of Energy shall pub24 lish guidance for purposes of this section describing what 

25 constitutes a significant adverse effect on the supply of do-
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1 mestic energy resources under Executive Order No. 13211 

2 (42 U.S.C. 13201 note). 

3 (c) MEMORANDUM OF UNDERSTANDING.—The Sec4 retary of the Interior and the Secretary of Agriculture shall 

5 include in the memorandum of understanding under section 

6 344 provisions for implementing subsection (a) of this sec7 tion. 

8 SEC. 350. ENERGY FACILITY RIGHTS-OF-WAY AND COR9 RIDORS ON FEDERAL LAND. 

10 (a) REPORT TO CONGRESS.— 

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

12 the date of enactment of this Act, the Secretary of Ag13 riculture and the Secretary of the Interior, in con14 sultation with the Secretary of Commerce, the Sec15 retary of Defense, the Secretary of Energy, and the 

16 Federal Energy Regulatory Commission, shall submit 

17 to Congress a joint report— 

18 (A) that addresses— 

19 (i) the location of existing rights-of20 way and designated and de facto corridors 

21 for oil and gas pipelines and electric trans22 mission and distribution facilities on Fed23 eral land; and 

24 (ii) opportunities for additional oil 

25 and gas pipeline and electric transmission 
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1 capacity within those rights-of-way and cor2 ridors; and 

3 (B) that includes a plan for making avail4 able, on request, to the appropriate Federal, 

5 State, and local agencies, tribal governments, 

6 and other persons involved in the siting of oil 

7 and gas pipelines and electricity transmission 

8 facilities Geographic Information System-based 

9 information regarding the location of the exist10 ing rights-of-way and corridors and any planned 

11 rights-of-way and corridors. 

12 (2) CONSULTATIONS AND CONSIDERATIONS.—In 

13 preparing the report, the Secretary of the Interior 

14 and the Secretary of Agriculture shall consult with— 

15 (A) other agencies of Federal, State, tribal, 

16 or local units of government, as appropriate; 

17 (B) persons involved in the siting of oil and 

18 gas pipelines and electric transmission facilities; 

19 and 

20 (C) other interested members of the public. 

21 (3) LIMITATION.—The Secretary of the Interior 

22 and the Secretary of Agriculture shall limit the dis23 tribution of the report and Geographic Information 

24 System-based information referred to in paragraph 

25 (1) as necessary for national and infrastructure secu-
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1 rity reasons, if either Secretary determines that the 

2 information may be withheld from public disclosure 

3 under a national security or other exception under 

4 section 552(b) of title 5, United States Code. 

5 (b) CORRIDOR DESIGNATIONS.— 

6 (1) 11 CONTIGUOUS WESTERN STATES.—Not 

7 later than 2 years after the date of enactment of this 

8 Act, the Secretary of Agriculture, the Secretary of 

9 Commerce, the Secretary of Defense, the Secretary of 

10 Energy, and the Secretary of the Interior, in con11 sultation with the Federal Energy Regulatory Com12 mission and the affected utility industries, shall joint13 ly— 

14 (A) designate, under title V of the Federal 

15 Land Policy and Management Act of 1976 (43 

16 U.S.C. 1761 et seq.) and other applicable Federal 

17 laws, corridors for oil and gas pipelines and elec18 tricity transmission and facilities on Federal 

19 land in the eleven contiguous Western States (as 

20 defined in section 103 of the Federal Land Pol21 icy and Management Act of 1976 (43 U.S.C. 

22 1702)); 

23 (B) perform any environmental reviews 

24 that may be required to complete the designa25 tions of corridors for the facilities on Federal 
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1 land in the eleven contiguous Western States; 

2 and 

3 (C) incorporate the designated corridors 

4 into— 

5 (i) the relevant departmental and 

6 agency land use and resource management 

7 plans; or 

8 (ii) equivalent plans. 

9 (2) OTHER STATES.—Not later than 4 years 

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

11 of Agriculture, the Secretary of Commerce, the Sec12 retary of Defense, the Secretary of Energy, and the 

13 Secretary of the Interior, in consultation with the 

14 Federal Energy Regulatory Commission and the af15 fected utility industries, shall jointly— 

16 (A) identify corridors for oil and gas pipe17 lines and electricity transmission and distribu18 tion facilities on Federal land in the States other 

19 than those described in paragraph (1); and 

20 (B) schedule prompt action to identify, des21 ignate, and incorporate the corridors into the 

22 land use plan. 

23 (3) ONGOING RESPONSIBILITIES.—The Secretary 

24 of Agriculture, the Secretary of Commerce, the Sec25 retary of Defense, the Secretary of Energy, and the 
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1 Secretary of the Interior, with respect to lands under 

2 their respective jurisdictions, in consultation with the 

3 Federal Energy Regulatory Commission and the af4 fected utility industries, shall establish procedures 

5 that— 

6 (A) ensure that additional corridors for oil 

7 and gas pipelines and electricity transmission 

8 and distribution facilities on Federal land are 

9 promptly identified and designated; and 

10 (B) expedite applications to construct or 

11 modify oil and gas pipelines and electricity 

12 transmission and distribution facilities within 

13 the corridors, taking into account prior analyses 

14 and environmental reviews undertaken during 

15 the designation of corridors. 

16 (c) CONSIDERATIONS.—In carrying out this section, 

17 the Secretaries shall take into account the need for upgraded 

18 and new electricity transmission and distribution facilities 

19 to— 

20 (1) improve reliability; 

21 (2) relieve congestion; and 

22 (3) enhance the capability of the national grid to 

23 deliver electricity. 

24 (d) DEFINITION OF CORRIDOR.— 
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1 (1) IN GENERAL.—In this section and title V of 

2 the Federal Land Policy and Management Act of 

3 1976 (43 U.S.C. 1761 et seq.), the term ‘‘corridor’’ 

4 means— 

5 (A) a linear strip of land— 

6 (i) with a width determined with con7 sideration given to technological, environ8 mental, and topographical factors; and 

9 (ii) that contains, or may in the future 

10 contain, 1 or more utility, communication, 

11 or transportation facilities; 

12 (B) a land use designation that is estab13 lished— 

14 (i) by law; 

15 (ii) by Secretarial Order; 

16 (iii) through the land use planning 

17 process; or 

18 (iv) by other management decision; 

19 and 

20 (C) a designation made for the purpose of 

21 establishing the preferred location of compatible 

22 linear facilities and land uses. 

23 (2) SPECIFICATIONS OF CORRIDOR.—On designa24 tion of a corridor under this section, the centerline, 
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1 width, and compatible uses of a corridor shall be spec2 ified. 

3 SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS DRILL4 ING BAN. 

5 Congress encourages no Federal or State permit or 

6 lease to be issued for new oil and gas slant, directional, 

7 or offshore drilling in or under one or more of the Great 

8 Lakes. 

9 SEC. 358. FEDERAL COALBED METHANE REGULATION. 

10 Any State currently on the list of Affected States estab11 lished under section 1339(b) of the Energy Policy Act of 

12 1992 (42 U.S.C. 13368(b)) shall be removed from the list 

13 if, not later than 3 years after the date of enactment of 

14 this Act, the State takes, or prior to the date of enactment 

15 has taken, any of the actions required for removal from the 

16 list under such section 1339(b). 

17 Subtitle D—Refining Revitalization 

18 SEC. 371. SHORT TITLE. 

19 This subtitle may be cited as the ‘‘United States Refin20 ery Revitalization Act of 2005’’. 

21 SEC. 372. FINDINGS. 

22 Congress finds the following: 

23 (1) It serves the national interest to increase pe24 troleum refining capacity for gasoline, heating oil, 

25 diesel fuel, jet fuel, kerosene, and petrochemical feed-
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1 stocks wherever located within the United States, to 

2 bring more supply to the markets for use by the 

3 American people. Nearly 50 percent of the petroleum 

4 in the United States is used for the production of gas5 oline. Refined petroleum products have a significant 

6 impact on interstate commerce. 

7 (2) United States demand for refined petroleum 

8 products currently exceeds the country’s petroleum re9 fining capacity to produce such products. By 2025, 

10 United States gasoline consumption is projected to 

11 rise from 8,900,000 barrels per day to 12,900,000 

12 barrels per day. Diesel fuel and home heating oil are 

13 becoming larger components of an increasing demand 

14 for refined petroleum supply. With the increase in air 

15 travel, jet fuel consumption is projected to be 789,000 

16 barrels per day higher in 2025 than today. 

17 (3) The petroleum refining industry is operating 

18 at 95 percent of capacity. The United States is cur19 rently importing 5 percent of its refined petroleum 

20 products and because of the stringent United States 

21 gasoline and diesel fuel specifications, few foreign re22 finers can produce the clean fuels required in the 

23 United States and the number of foreign suppliers 

24 that can produce United States quality gasoline is de25 creasing. 
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1 (4) Refiners are subject to significant environ2 mental and other regulations and face several new 

3 Clean Air Act requirements over the next decade. New 

4 Clean Air Act requirements will benefit the environ5 ment but will also require substantial capital invest6 ment and additional government permits. 

7 (5) No new refinery has been built in the United 

8 States since 1976 and many smaller domestic refin9 eries have become idle since the removal of the Domes10 tic Crude Oil Allocation Program and because of reg11 ulatory uncertainty and generally low returns on 

12 capital employed. Today, the United States has 149 

13 refineries, down from 324 in 1981. Restoration of re14 cently idled refineries alone would amount to 483,570 

15 barrels a day in additional capacity, or approxi16 mately 3.3 percent of the total operating capacity. 

17 (6) Refiners have met growing demand by in18 creasing the use of existing equipment and increasing 

19 the efficiency and capacity of existing plants. But re20 fining capacity has begun to lag behind peak summer 

21 demand. 

22 (7) Heavy industry and manufacturing jobs 

23 have closed or relocated due to barriers to investment, 

24 burdensome regulation, and high costs of operation, 

25 among other reasons. 
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1 (8) Because the production and disruption in 

2 supply of refined petroleum products has a significant 

3 impact on interstate commerce, it serves the national 

4 interest to increase the domestic refining operating 

5 capacity. 

6 (10) More regulatory certainty for refinery own7 ers is needed to stimulate investment in increased re8 finery capacity and required procedures for Federal, 

9 State, and local regulatory approvals need to be 

10 streamlined to ensure that increased refinery capacity 

11 can be developed and operated in a safe, timely, and 

12 cost-effective manner. 

13 (11) The proposed Yuma Arizona Refinery, a 

14 grassroots refinery facility, which only recently re15 ceived its Federal air quality permit after 5 years 

16 under the current regulatory process, and is just now 

17 beginning its environmental impact statement and 

18 local permitting process, serves as an example of the 

19 obstacles a refiner would have to overcome to reopen 

20 an idle refinery. 

21 SEC. 373. PURPOSE. 

22 The purpose of this subtitle is to encourage the expan23 sion of the United States refining capacity by providing 

24 an accelerated review and approval process of all regulatory 

25 approvals for certain idle refineries and lending cor-
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1 responding legal and technical assistance to States with re2 sources that may be inadequate to meet such permit review 

3 demands. 

4 SEC. 374. DESIGNATION OF REFINERY REVITALIZATION 

5 ZONES. 

6 Not later than 90 days after the date of enactment of 

7 this Act, the Secretary shall designate as a Refinery Revi8 talization Zone any area— 

9 (1) that— 

10 (A) has experienced mass layoffs at manu11 facturing facilities, as determined by the Sec12 retary of Labor; or 

13 (B) contains an idle refinery; and 

14 (2) that has an unemployment rate that exceeds 

15 the national average by at least 10 percent of the na16 tional average, as set by the Department of Labor, 

17 Bureau of Labor Statistics, at the time of the designa18 tion as a Refinery Revitalization Zone. 

19 SEC. 375. MEMORANDUM OF UNDERSTANDING. 

20 (a) IN GENERAL.—Not later than 90 days after the 

21 date of enactment of this Act, the Secretary shall enter into 

22 a memorandum of understanding with the Administrator 

23 for the purposes of this subtitle. The Secretary and the Ad24 ministrator shall each designate a senior official responsible 

25 for, and dedicate sufficient other staff and resources to en-
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1 sure, full implementation of the purposes of this subtitle and 

2 any regulations enacted pursuant to this subtitle. 

3 (b) ADDITIONAL SIGNATORIES.—The Governor of any 

4 State, and the appropriate representative of any Indian 

5 Tribe, with jurisdiction over a Refinery Revitalization 

6 Zone, as designated by the Secretary pursuant to section 

7 374, may be signatories to the memorandum of under8 standing under this section. 

9 SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSIST10 ANCE. 

11 Not later than 30 days after a Revitalization Program 

12 Qualifying State becomes a signatory to the memorandum 

13 of understanding under section 375(b)— 

14 (1) the Secretary shall designate one or more em15 ployees of the Department with expertise relating to 

16 the siting and operation of refineries to provide legal 

17 and technical assistance to that Revitalization Pro18 gram Qualifying State; and 

19 (2) the Administrator shall designate, to provide 

20 legal and technical assistance for that Revitalization 

21 Program Qualifying State, one or more employees of 

22 the Environmental Protection Agency with expertise 

23 on regulatory issues, relating to the siting and oper24 ation of refineries, with respect to each of— 
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1 (A) the Clean Air Act (42 U.S.C. 7401 et 

2 seq.); 

3 (B) the Federal Water Pollution Control Act 

4 (33 U.S.C. 1251 et seq.); 

5 (C) the Safe Drinking Water Act (42 U.S.C. 

6 300f et seq.); 

7 (D) the Comprehensive Environmental Re8 sponse, Compensation, and Liability Act of 1980 

9 (42 U.S.C. 9601 et seq.); 

10 (E) the Solid Waste Disposal Act (42 

11 U.S.C. 6901 et seq.); 

12 (F) the Toxic Substances Control Act (15 

13 U.S.C. 2601 et seq.); 

14 (G) the National Historic Preservation Act 

15 (16 U.S.C. 470 et seq.); and 

16 (H) the National Environmental Policy Act 

17 of 1969 (42 U.S.C. 4321 et seq.). 

18 SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF 

19 PERMITTING PROCESS. 

20 (a) DEPARTMENT OF ENERGY AS LEAD AGENCY.— 

21 Upon written request of a prospective applicant for Federal 

22 authorization for a refinery facility in a Refinery Revital23 ization Zone, the Department shall act as the lead Federal 

24 agency for the purposes of coordinating all applicable Fed25 eral authorizations and environmental reviews of the refin-
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1 ing facility. To the maximum extent practicable under ap2 plicable Federal law, the Secretary shall coordinate this 

3 Federal authorization and review process with any Indian 

4 Tribes and State and local agencies responsible for con5 ducting any separate permitting and environmental re6 views of the refining facility. 

7 (b) SCHEDULE.— 

8 (1) IN GENERAL.—The Secretary, in coordina9 tion with the agencies with authority over Federal 

10 authorizations and, as appropriate, with Indian 

11 Tribes and State and local agencies that are willing 

12 to coordinate their separate permitting and environ13 mental reviews with the Federal authorizations and 

14 environmental reviews, shall establish a schedule with 

15 prompt and binding intermediate and ultimate dead16 lines for the review of, and Federal authorization de17 cisions relating to, refinery facility siting and oper18 ation. 

19 (2) PREAPPLICATION PROCESS.—Prior to estab20 lishing the schedule, the Secretary shall provide an 

21 expeditious preapplication mechanism for applicants 

22 to confer with the agencies involved and to have each 

23 agency communicate to the prospective applicant 

24 within 60 days concerning— 
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1 (A) the likelihood of approval for a poten2 tial refinery facility; and 

3 (B) key issues of concern to the agencies and 

4 local community. 

5 (3) SCHEDULE.—The Secretary shall consider 

6 the preapplication findings under paragraph (2) in 

7 setting the schedule and shall ensure that once an ap8 plication has been submitted with such information 

9 as the Secretary considers necessary, all permit deci10 sions and related environmental reviews under all ap11 plicable Federal laws shall be completed within 6 

12 months or, where circumstances require otherwise, as 

13 soon as thereafter practicable. 

14 (c) CONSOLIDATED ENVIRONMENTAL REVIEW.— 

15 (1) LEAD AGENCY.—In carrying out its role as 

16 the lead Federal agency for environmental review, the 

17 Department shall coordinate all applicable Federal 

18 actions for complying with the National Environ19 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

20 and shall be responsible for preparing any environ21 mental impact statement required by section 

22 102(2)(C) of that Act (42 U.S.C. 4332(2)(C)) or such 

23 other form of environmental review as is required. 

24 (2) CONSOLIDATION OF STATEMENTS.—In car25 rying out paragraph (1), if the Department deter-
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1 mines an environmental impact statement is re2 quired, the Department shall prepare a single envi3 ronmental impact statement, which shall consolidate 

4 the environmental reviews of all Federal agencies con5 sidering any aspect of the project covered by the envi6 ronmental impact statement. 

7 (d) OTHER AGENCIES.—Each Federal agency consid8 ering an aspect of the siting or operation of a refinery facil9 ity in a Refinery Revitalization Zone shall cooperate with 

10 the Department and comply with the deadlines established 

11 by the Department in the preparation of any environmental 

12 impact statement or such other form of review as is re13 quired. 

14 (e) EXCLUSIVE RECORD.—The Department shall, with 

15 the cooperation of Federal and State administrative agen16 cies and officials, maintain a complete consolidated record 

17 of all decisions made or actions taken by the Department 

18 or by a Federal administrative agency or officer (or State 

19 administrative agency or officer acting under delegated 

20 Federal authority) with respect to the siting or operation 

21 of a refinery facility in a Refinery Revitalization Zone. 

22 Such record shall be the exclusive record for any Federal 

23 administrative proceeding that is an appeal or review of 

24 any such decision made or action taken. 
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1 (f) APPEALS.—In the event any agency has denied a 

2 Federal authorization required for a refinery facility in a 

3 Refinery Revitalization Zone, or has failed to act by a 

4 deadline established by the Secretary pursuant to subsection 

5 (b) for deciding whether to issue the Federal authorization, 

6 the applicant or any State in which the refinery facility 

7 would be located may file an appeal with the Secretary. 

8 Based on the record maintained under subsection (e), and 

9 in consultation with the affected agency, the Secretary may 

10 then either issue the necessary Federal authorization with 

11 appropriate conditions, or deny the appeal. The Secretary 

12 shall issue a decision within 60 days after the filing of the 

13 appeal. In making a decision under this subsection, the Sec14 retary shall comply with applicable requirements of Federal 

15 law, including each of the laws referred to in section 

16 376(2)(A) through (H). Any judicial appeal of the Sec17 retary’s decision shall be to the United States Court of Ap18 peals for the District of Columbia. 

19 (g) CONFORMING REGULATIONS.—Not later than 6 

20 months after the date of enactment of this Act, the Secretary 

21 shall issue any regulations necessary to implement this sub22 title. 
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1 SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGU2 LATIONS REQUIRED. 

3 Nothing in this subtitle shall be construed to waive the 

4 applicability of environmental laws and regulations to any 

5 refinery facility. 

6 SEC. 379. DEFINITIONS. 

7 For the purposes of this subtitle, the term— 

8 (1) ‘‘Administrator’’ means the Administrator of 

9 the Environmental Protection Agency; 

10 (2) ‘‘Department’’ means the Department of En11 ergy; 

12 (3) ‘‘Federal authorization’’ means any author13 ization required under Federal law (including the 

14 Clean Air Act, the Federal Water Pollution Control 

15 Act, the Safe Drinking Water Act, the Comprehensive 

16 Environmental Response, Compensation, and Liabil17 ity Act of 1980, the Solid Waste Disposal Act, the 

18 Toxic Substances Control Act, the National Historic 

19 Preservation Act, and the National Environmental 

20 Policy Act of 1969) in order to site, construct, up21 grade, or operate a refinery facility within a Refinery 

22 Revitalization Zone, including such permits, special 

23 use authorizations, certifications, opinions, or other 

24 approvals as may be required, whether issued by a 

25 Federal, State, or local agency; 
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1 (4) ‘‘idle refinery’’ means any real property site 

2 that has been used at any time for a refinery facility 

3 since December 31, 1979, that has not been in oper4 ation after April 1, 2005; 

5 (5) ‘‘refinery facility’’ means any facility de6 signed and operated to receive, unload, store, process 

7 and refine raw crude oil by any chemical or physical 

8 process, including distillation, fluid catalytic crack9 ing, hydrocracking, coking, alkylation, etherification, 

10 polymerization, catalytic reforming, isomerization, 

11 hydrotreating, blending, and any combination thereof; 

12 (6) ‘‘Revitalization Program Qualifying State’’ 

13 means a State or Indian Tribe that— 

14 (A) has entered into the memorandum of 

15 understanding pursuant to section 375(b); and 

16 (B) has established a refining infrastructure 

17 coordination office that the Secretary finds will 

18 facilitate Federal-State cooperation for the pur19 poses of this subtitle; and 

20 (7) ‘‘Secretary’’ means the Secretary of Energy. 
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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 each 

9 of fiscal years 2006 through 2014, to remain available until 

10 expended. 

11 (b) REPORT.—The Secretary shall submit to Congress 

12 the report required by this subsection not later than March 

13 31, 2007. The report shall include, with respect to subsection 

14 (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 each 

22 coal and related technology that will be pursued; and 

23 (4) a detailed description of how the program 

24 will avoid problems enumerated in General Account25 ing Office reports on the Clean Coal Technology Pro-
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1 gram, including problems that have resulted in 

2 unspent funds and projects that failed either finan3 cially or scientifically. 

4 SEC. 402. PROJECT CRITERIA. 

5 (a) IN GENERAL.—The Secretary shall not provide 

6 funding under this subtitle for any project that does not 

7 advance efficiency, environmental performance, and cost 

8 competitiveness well beyond the level of technologies that are 

9 in commercial service or have been demonstrated on a scale 

10 that the Secretary determines is sufficient to demonstrate 

11 that commercial service is viable as of the date of enactment 

12 of this Act. 

13 (b) TECHNICAL CRITERIA FOR CLEAN COAL POWER

14 INITIATIVE.— 

15 (1) GASIFICATION PROJECTS.— 

16 (A) IN GENERAL.—In allocating the funds 

17 made available under section 401(a), the Sec18 retary shall ensure that at least 60 percent of the 

19 funds are used only for projects on coal-based 

20 gasification technologies, including gasification 

21 combined cycle, gasification fuel cells, gasifi22 cation coproduction, and hybrid gasification/ 

23 combustion. 

24 (B) TECHNICAL MILESTONES.—The Sec25 retary shall periodically set technical milestones 
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1 specifying the emission and thermal efficiency 

2 levels that coal gasification projects under this 

3 subtitle shall be designed, and reasonably ex4 pected, to achieve. The technical milestones shall 

5 become more restrictive during the life of the pro6 gram. The Secretary shall set the periodic mile7 stones so as to achieve by 2020 coal gasification 

8 projects able— 

9 (i) to remove 99 percent of sulfur diox10 ide; 

11 (ii) to emit not more than .05 lbs of 

12 NOx per million Btu; 

13 (iii) to achieve substantial reductions 

14 in mercury emissions; and 

15 (iv) to achieve a thermal efficiency 

16 of— 

17 (I) 60 percent for coal of more 

18 than 9,000 Btu; 

19 (II) 59 percent for coal of 7,000 to 

20 9,000 Btu; and 

21 (III) 50 percent for coal of less 

22 than 7,000 Btu. 

23 (2) OTHER PROJECTS.—The Secretary shall pe24 riodically set technical milestones and ensure that up 

25 to 40 percent of the funds appropriated pursuant to 
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1 section 401(a) are used for projects not described in 

2 paragraph (1). The milestones shall specify the emis3 sion and thermal efficiency levels that projects funded 

4 under this paragraph shall be designed to and reason5 ably expected to achieve. The technical milestones 

6 shall become more restrictive during the life of the 

7 program. The Secretary shall set the periodic mile8 stones so as to achieve by 2010 projects able— 

9 (A) to remove 97 percent of sulfur dioxide; 

10 (B) to emit no more than .08 lbs of NOx per 

11 million Btu; 

12 (C) to achieve substantial reductions in 

13 mercury emissions; and 

14 (D) to achieve a thermal efficiency of— 

15 (i) 45 percent for coal of more than 

16 9,000 Btu; 

17 (ii) 44 percent for coal of 7,000 to 

18 9,000 Btu; and 

19 (iii) 40 percent for coal of less than 

20 7,000 Btu. 

21 (3) CONSULTATION.—Before setting the technical 

22 milestones under paragraphs (1)(B) and (2), the Sec23 retary shall consult with the Administrator of the En24 vironmental Protection Agency and interested enti25 ties, including coal producers, industries using coal, 
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1 organizations to promote coal or advanced coal tech2 nologies, environmental organizations, and organiza3 tions representing workers. 

4 (4) EXISTING UNITS.—In the case of projects at 

5 units in existence on the date of enactment of this 

6 Act, in lieu of the thermal efficiency requirements set 

7 forth in paragraph (1)(B)(iv) and (2)(D), the mile8 stones shall be designed to achieve an overall thermal 

9 design efficiency improvement, compared to the effi10 ciency of the unit as operated, of not less than— 

11 (A) 7 percent for coal of more than 9,000 

12 Btu; 

13 (B) 6 percent for coal of 7,000 to 9,000 Btu; 

14 or 

15 (C) 4 percent for coal of less than 7,000 

16 Btu. 

17 (5) PERMITTED USES.—In carrying out this sub18 title, the Secretary may fund projects that include, as 

19 part of the project, the separation and capture of car20 bon dioxide. The thermal efficiency goals of para21 graphs (1), (2), and (4) shall not apply for projects 

22 that separate and capture at least 50 percent of the 

23 facility’s potential emissions of carbon dioxide. 
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1 (c) FINANCIAL CRITERIA.—The Secretary shall not 

2 provide a funding award under this subtitle unless the re3 cipient documents to the satisfaction of the Secretary that— 

4 (1) the award recipient is financially viable 

5 without the receipt of additional Federal funding; 

6 (2) the recipient will provide sufficient informa7 tion to the Secretary to enable the Secretary to ensure 

8 that the award funds are spent efficiently and effec9 tively; and 

10 (3) a market exists for the technology being dem11 onstrated or applied, as evidenced by statements of 

12 interest in writing from potential purchasers of the 

13 technology. 

14 (d) FINANCIAL ASSISTANCE.—The Secretary shall pro15 vide financial assistance to projects that meet the require16 ments of subsections (a), (b), and (c) and are likely to— 

17 (1) achieve overall cost reductions in the utiliza18 tion of coal to generate useful forms of energy; 

19 (2) improve the competitiveness of coal among 

20 various forms of energy in order to maintain a diver21 sity of fuel choices in the United States to meet elec22 tricity generation requirements; and 

23 (3) demonstrate methods and equipment that are 

24 applicable to 25 percent of the electricity generating 

25 facilities, using various types of coal, that use coal as 
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1 the primary feedstock as of the date of enactment of 

2 this Act. 

3 (e) FEDERAL SHARE.—The Federal share of the cost 

4 of a coal or related technology project funded by the Sec5 retary under this subtitle shall not exceed 50 percent. 

6 (f) APPLICABILITY.—No technology, or level of emis7 sion reduction, shall be treated as adequately demonstrated 

8 for purposes of section 111 of the Clean Air Act (42 U.S.C. 

9 7411), achievable for purposes of section 169 of that Act 

10 (42 U.S.C. 7479), or achievable in practice for purposes of 

11 section 171 of that Act (42 U.S.C. 7501) solely by reason 

12 of the use of such technology, or the achievement of such 

13 emission reduction, by 1 or more facilities receiving assist14 ance under this subtitle. 

15 SEC. 403. REPORT. 

16 Not later than 1 year after the date of enactment of 

17 this Act, and once every 2 years thereafter through 2014, 

18 the Secretary, in consultation with other appropriate Fed19 eral agencies, shall submit to Congress a report describ20 ing— 

21 (1) the technical milestones set forth in section 

22 402 and how those milestones ensure progress toward 

23 meeting the requirements of subsections (b)(1)(B) and 

24 (b)(2) of section 402; and 
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1 (2) the status of projects funded under this sub2 title. 

3 SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE. 

4 As part of the program authorized in section 401, the 

5 Secretary shall award competitive, merit-based grants to 

6 universities for the establishment of Centers of Excellence 

7 for Energy Systems of the Future. The Secretary shall pro8 vide grants to universities that show the greatest potential 

9 for advancing new clean coal technologies. 

10 Subtitle B—Clean Power Projects 

11 SEC. 411. COAL TECHNOLOGY LOAN. 

12 There are authorized to be appropriated to the Sec13 retary $125,000,000 to provide a loan to the owner of the 

14 experimental plant constructed under United States De15 partment of Energy cooperative agreement number DE-FC16 22–91PC90544 on such terms and conditions as the Sec17 retary determines, including interest rates and upfront 

18 payments. 

19 SEC. 412. COAL GASIFICATION. 

20 The Secretary is authorized to provide loan guarantees 

21 for a project to produce energy from a plant using inte22 grated gasification combined cycle technology of at least 400 

23 megawatts in capacity that produces power at competitive 

24 rates in deregulated energy generation markets and that 
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1 does not receive any subsidy (direct or indirect) from rate2 payers. 

3 SEC. 414. PETROLEUM COKE GASIFICATION. 

4 The Secretary is authorized to provide loan guarantees 

5 for at least 5 petroleum coke gasification projects. 

6 SEC. 416. ELECTRON SCRUBBING DEMONSTRATION. 

7 The Secretary shall use $5,000,000 from amounts ap8 propriated to initiate, through the Chicago Operations Of9 fice, a project to demonstrate the viability of high-energy 

10 electron scrubbing technology on commercial-scale electrical 

11 generation using high-sulfur coal. 

12 Subtitle D—Coal and Related 

13 Programs 

14 SEC. 441. CLEAN AIR COAL PROGRAM. 

15 (a) AMENDMENT.—The Energy Policy Act of 1992 is 

16 amended by adding the following new title at the end there17 of: 

18 ‘‘TITLE XXXI—CLEAN AIR COAL 

19 PROGRAM 

20 ‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS. 

21 ‘‘(a) FINDINGS.—The Congress finds that— 

22 ‘‘(1) new environmental regulations present ad23 ditional challenges for coal-fired electrical generation 

24 in the private marketplace; and 
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1 ‘‘(2) the Department of Energy, in cooperation 

2 with industry, has already fully developed and com3 mercialized several new clean-coal technologies that 

4 will allow the clean use of coal. 

5 ‘‘(b) PURPOSES.—The purposes of this title are to— 

6 ‘‘(1) promote national energy policy and energy 

7 security, diversity, and economic competitiveness ben8 efits that result from the increased use of coal; 

9 ‘‘(2) mitigate financial risks, reduce the cost, 

10 and increase the marketplace acceptance of the new 

11 clean coal technologies; and 

12 ‘‘(3) advance the deployment of pollution control 

13 equipment to meet the current and future obligations 

14 of coal-fired generation units regulated under the 

15 Clean Air Act (42 U.S.C. 7402 and following). 

16 ‘‘SEC. 3102. AUTHORIZATION OF PROGRAM. 

17 ‘‘The Secretary shall carry out a program to facilitate 

18 production and generation of coal-based power and the in19 stallation of pollution control equipment. 

20 ‘‘SEC. 3103. AUTHORIZATION OF APPROPRIATIONS. 

21 ‘‘(a) POLLUTION CONTROL PROJECTS.—There are au22 thorized to be appropriated to the Secretary $300,000,000 

23 for fiscal year 2006, $100,000,000 for fiscal year 2007, 

24 $40,000,000 for fiscal year 2008, $30,000,000 for fiscal year 

25 2009, and $30,000,000 for fiscal year 2010, to remain 
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1 available until expended, for carrying out the program for 

2 pollution control projects, which may include— 

3 ‘‘(1) pollution control equipment and processes 

4 for the control of mercury air emissions; 

5 ‘‘(2) pollution control equipment and processes 

6 for the control of nitrogen dioxide air emissions or 

7 sulfur dioxide emissions; 

8 ‘‘(3) pollution control equipment and processes 

9 for the mitigation or collection of more than one pol10 lutant; 

11 ‘‘(4) advanced combustion technology for the con12 trol of at least two pollutants, including mercury, 

13 particulate matter, nitrogen oxides, and sulfur diox14 ide, which may also be designed to improve the energy 

15 efficiency of the unit; and 

16 ‘‘(5) advanced pollution control equipment and 

17 processes designed to allow use of the waste byprod18 ucts or other byproducts of the equipment or an elec19 trical generation unit designed to allow the use of by20 products. 

21 Funds appropriated under this subsection which are not 

22 awarded before fiscal year 2012 may be applied to projects 

23 under subsection (b), in addition to amounts authorized 

24 under subsection (b). 
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1 ‘‘(b) GENERATION PROJECTS.—There are authorized 

2 to be appropriated to the Secretary $250,000,000 for fiscal 

3 year 2007, $350,000,000 for fiscal year 2008, $400,000,000 

4 for fiscal year 2009, $400,000,000 for fiscal year 2010, 

5 $400,000,000 for fiscal year 2011, $400,000,000 for fiscal 

6 year 2012, and $300,000,000 for fiscal year 2013, to remain 

7 available until expended, for generation projects and air 

8 pollution control projects. Such projects may include— 

9 ‘‘(1) coal-based electrical generation equipment 

10 and processes, including gasification combined cycle 

11 or other coal-based generation equipment and proc12 esses; 

13 ‘‘(2) associated environmental control equipment, 

14 that will be cost-effective and that is designed to meet 

15 anticipated regulatory requirements; 

16 ‘‘(3) coal-based electrical generation equipment 

17 and processes, including gasification fuel cells, gasifi18 cation coproduction, and hybrid gasification/combus19 tion projects; and 

20 ‘‘(4) advanced coal-based electrical generation 

21 equipment and processes, including oxidation combus22 tion techniques, ultra-supercritical boilers, and chem23 ical looping, which the Secretary determines will be 

24 cost-effective and could substantially contribute to 

25 meeting anticipated environmental or energy needs. 
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1 ‘‘(c) LIMITATION.—Funds placed at risk during any 

2 fiscal year for Federal loans or loan guarantees pursuant 

3 to this title may not exceed 30 percent of the total funds 

4 obligated under this title. 

5 ‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA. 

6 ‘‘The Secretary shall pursuant to authorizations con7 tained in section 3103 provide funding for air pollution 

8 control projects designed to facilitate compliance with Fed9 eral and State environmental regulations, including any 

10 regulation that may be established with respect to mercury. 

11 ‘‘SEC. 3105. CRITERIA FOR GENERATION PROJECTS. 

12 ‘‘(a) CRITERIA.—The Secretary shall establish criteria 

13 on which selection of individual projects described in section 

14 3103(b) should be based. The Secretary may modify the cri15 teria as appropriate to reflect improvements in equipment, 

16 except that the criteria shall not be modified to be less strin17 gent. These selection criteria shall include— 

18 ‘‘(1) prioritization of projects whose installation 

19 is likely to result in significant air quality improve20 ments in nonattainment air quality areas; 

21 ‘‘(2) prioritization of projects that result in the 

22 repowering or replacement of older, less efficient 

23 units; 

24 ‘‘(3) documented broad interest in the procure25 ment of the equipment and utilization of the processes 
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1 used in the projects by electrical generator owners or 

2 operators; 

3 ‘‘(4) equipment and processes beginning in 2006 

4 through 2011 that are projected to achieve an thermal 

5 efficiency of— 

6 ‘‘(A) 40 percent for coal of more than 9,000 

7 Btu per pound based on higher heating values; 

8 ‘‘(B) 38 percent for coal of 7,000 to 9,000 

9 Btu per pound based on higher heating values; 

10 and 

11 ‘‘(C) 36 percent for coal of less than 7,000 

12 Btu per pound based on higher heating values, 

13 except that energy used for coproduction or cogenera14 tion shall not be counted in calculating the thermal 

15 efficiency under this paragraph; and 

16 ‘‘(5) equipment and processes beginning in 2012 

17 and 2013 that are projected to achieve an thermal ef18 ficiency of— 

19 ‘‘(A) 45 percent for coal of more than 9,000 

20 Btu per pound based on higher heating values; 

21 ‘‘(B) 44 percent for coal of 7,000 to 9,000 

22 Btu per pound based on higher heating values; 

23 and 

24 ‘‘(C) 40 percent for coal of less than 7,000 

25 Btu per pound based on higher heating values, 
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1 except that energy used for coproduction or cogenera2 tion shall not be counted in calculating the thermal 

3 efficiency under this paragraph. 

4 ‘‘(b) SELECTION.—(1) In selecting the projects, up to 

5 25 percent of the projects selected may be either coproduc6 tion or cogeneration or other gasification projects, but at 

7 least 25 percent of the projects shall be for the sole purpose 

8 of electrical generation, and priority should be given to 

9 equipment and projects less than 600 MW to foster and pro10 mote standard designs. 

11 ‘‘(2) The Secretary shall give priority to projects that 

12 have been developed and demonstrated that are not yet cost 

13 competitive, and for coal energy generation projects that ad14 vance efficiency, environmental performance, or cost com15 petitiveness significantly beyond the level of pollution con16 trol equipment that is in operation on a full scale. 

17 ‘‘SEC. 3106. FINANCIAL CRITERIA. 

18 ‘‘(a) IN GENERAL.—The Secretary shall only provide 

19 financial assistance to projects that meet the requirements 

20 of sections 3103 and 3104 and are likely to— 

21 ‘‘(1) achieve overall cost reductions in the utili22 zation of coal to generate useful forms of energy; and 

23 ‘‘(2) improve the competitiveness of coal in order 

24 to maintain a diversity of domestic fuel choices in the 
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1 United States to meet electricity generation require2 ments. 

3 ‘‘(b) CONDITIONS.—The Secretary shall not provide a 

4 funding award under this title unless— 

5 ‘‘(1) the award recipient is financially viable 

6 without the receipt of additional Federal funding; 

7 and 

8 ‘‘(2) the recipient provides sufficient information 

9 to the Secretary for the Secretary to ensure that the 

10 award funds are spent efficiently and effectively. 

11 ‘‘(c) EQUAL ACCESS.—The Secretary shall, to the ex12 tent practical, utilize cooperative agreement, loan guar13 antee, and direct Federal loan mechanisms designed to en14 sure that all electrical generation owners have equal access 

15 to these technology deployment incentives. The Secretary 

16 shall develop and direct a competitive solicitation process 

17 for the selection of technologies and projects under this title. 

18 ‘‘SEC. 3107. FEDERAL SHARE. 

19 ‘‘The Federal share of the cost of a coal or related tech20 nology project funded by the Secretary under this title shall 

21 not exceed 50 percent. For purposes of this title, Federal 

22 funding includes only appropriated funds. 

23 ‘‘SEC. 3108. APPLICABILITY. 

24 ‘‘No technology, or level of emission reduction, shall be 

25 treated as adequately demonstrated for purposes of section 
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1 111 of the Clean Air Act (42 U.S.C. 7411), achievable for 

2 purposes of section 169 of the Clean Air Act (42 U.S.C. 

3 7479), or achievable in practice for purposes of section 171 

4 of the Clean Air Act (42 U.S.C. 7501) solely by reason of 

5 the use of such technology, or the achievement of such emis6 sion reduction, by one or more facilities receiving assistance 

7 under this title.’’. 

8 (b) TABLE OF CONTENTS AMENDMENT.—The table of 

9 contents of the Energy Policy Act of 1992 is amended by 

10 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.’’. 

11 TITLE V—INDIAN ENERGY 

12 SEC. 501. SHORT TITLE. 

13 This title may be cited as the ‘‘Indian Tribal Energy 

14 Development and Self-Determination Act of 2005’’. 

15 SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO16 GRAMS. 

17 (a) IN GENERAL.—Title II of the Department of En18 ergy Organization Act (42 U.S.C. 7131 et seq.) is amended 

19 by adding at the end the following: 
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1 ‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS

2 ‘‘SEC. 217. (a) ESTABLISHMENT.—There is established 

3 within the Department an Office of Indian Energy Policy 

4 and Programs (referred to in this section as the ‘Office’). 

5 The Office shall be headed by a Director, who shall be ap6 pointed by the Secretary and compensated at a rate equal 

7 to that of level IV of the Executive Schedule under section 

8 5315 of title 5, United States Code. 

9 ‘‘(b) DUTIES OF DIRECTOR.—The Director, in accord10 ance with Federal policies promoting Indian self-deter11 mination and the purposes of this Act, shall provide, direct, 

12 foster, coordinate, and implement energy planning, edu13 cation, management, conservation, and delivery programs 

14 of the Department that— 

15 ‘‘(1) promote Indian tribal energy development, 

16 efficiency, and use; 

17 ‘‘(2) reduce or stabilize energy costs; 

18 ‘‘(3) enhance and strengthen Indian tribal en19 ergy and economic infrastructure relating to natural 

20 resource development and electrification; and 

21 ‘‘(4) bring electrical power and service to Indian 

22 land and the homes of tribal members located on In23 dian lands or acquired, constructed, or improved (in 

24 whole or in part) with Federal funds.’’. 

25 (b) CONFORMING AMENDMENTS.— 
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1 (1) The table of contents of the Department of 

2 Energy Organization Act (42 U.S.C. prec. 7101) is 

3 amended— 

4 (A) in the item relating to section 209, by 

5 striking ‘‘Section’’ and inserting ‘‘Sec.’’; and 

6 (B) by striking the items relating to sections 

7 213 through 216 and inserting the following: 

‘‘Sec. 213. Establishment of policy for National Nuclear Security Administration. 

‘‘Sec. 214. Establishment of security, counterintelligence, and intelligence policies. 

‘‘Sec. 215. Office of Counterintelligence. 

‘‘Sec. 216. Office of Intelligence. 

‘‘Sec. 217. Office of Indian Energy Policy and Programs.’’. 

8 (2) Section 5315 of title 5, United States Code, 

9 is amended by inserting after ‘‘Inspector General, De10 partment of Energy.’’ the following: 

11 ‘‘Director, Office of Indian Energy Policy 

12 and Programs, Department of Energy.’’ 

13 § 503. Indian energy 

14 (a) IN GENERAL.—Title XXVI of the Energy Policy 

15 Act of 1992 (25 U.S.C. 3501 et seq.) is amended to read 

16 as follows: 

17 ‘‘TITLE XXVI—INDIAN ENERGY 

18 ‘‘SEC. 2601. DEFINITIONS. 

19 ‘‘For purposes of this title: 

20 ‘‘(1) The term ‘Director’ means the Director of 

21 the Office of Indian Energy Policy and Programs, 

22 Department of Energy. 

23 ‘‘(2) The term ‘Indian land’ means— 
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1 ‘‘(A) any land located within the bound2 aries of an Indian reservation, pueblo, or 

3 rancheria; 

4 ‘‘(B) any land not located within the 

5 boundaries of an Indian reservation, pueblo, or 

6 rancheria, the title to which is held— 

7 ‘‘(i) in trust by the United States for 

8 the benefit of an Indian tribe or an indi9 vidual Indian; 

10 ‘‘(ii) by an Indian tribe or an indi11 vidual Indian, subject to restriction against 

12 alienation under laws of the United States; 

13 or 

14 ‘‘(iii) by a dependent Indian commu15 nity; and 

16 ‘‘(C) land that is owned by an Indian tribe 

17 and was conveyed by the United States to a Na18 tive Corporation pursuant to the Alaska Native 

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

20 or that was conveyed by the United States to a 

21 Native Corporation in exchange for such land. 

22 ‘‘(3) The term ‘Indian reservation’ includes— 

23 ‘‘(A) an Indian reservation in existence in 

24 any State or States as of the date of enactment 

25 of this paragraph; 
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1 ‘‘(B) a public domain Indian allotment; 

2 and 

3 ‘‘(C) a dependent Indian community lo4 cated within the borders of the United States, re5 gardless of whether the community is located— 

6 ‘‘(i) on original or acquired territory 

7 of the community; or 

8 ‘‘(ii) within or outside the boundaries 

9 of any particular State. 

10 ‘‘(4) The term ‘Indian tribe’ has the meaning 

11 given the term in section 4 of the Indian Self-Deter12 mination and Education Assistance Act (25 U.S.C. 

13 450b), except that the term ‘Indian tribe’, for the pur14 pose of paragraph (11) and sections 2603(b)(3) and 

15 2604, shall not include any Native Corporation. 

16 ‘‘(5) The term ‘integration of energy resources’ 

17 means any project or activity that promotes the loca18 tion and operation of a facility (including any pipe19 line, gathering system, transportation system or facil20 ity, or electric transmission or distribution facility) 

21 on or near Indian land to process, refine, generate 

22 electricity from, or otherwise develop energy resources 

23 on, Indian land. 
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1 ‘‘(6) The term ‘Native Corporation’ has the 

2 meaning given the term in section 3 of the Alaska Na3 tive Claims Settlement Act (43 U.S.C. 1602). 

4 ‘‘(7) The term ‘organization’ means a partner5 ship, joint venture, limited liability company, or 

6 other unincorporated association or entity that is es7 tablished to develop Indian energy resources. 

8 ‘‘(8) The term ‘Program’ means the Indian en9 ergy resource development program established under 

10 section 2602(a). 

11 ‘‘(9) The term ‘Secretary’ means the Secretary of 

12 the Interior. 

13 ‘‘(10) The term ‘tribal energy resource develop14 ment organization’ means an organization of 2 or 

15 more entities, at least 1 of which is an Indian tribe, 

16 that has the written consent of the governing bodies 

17 of all Indian tribes participating in the organization 

18 to apply for a grant, loan, or other assistance author19 ized by section 2602. 

20 ‘‘(11) The term ‘tribal land’ means any land or 

21 interests in land owned by any Indian tribe, title to 

22 which is held in trust by the United States or which 

23 is subject to a restriction against alienation under 

24 laws of the United States. 
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1 ‘‘SEC. 2602. INDIAN TRIBAL ENERGY RESOURCE DEVELOP2 MENT. 

3 ‘‘(a) DEPARTMENT OF THE INTERIOR PROGRAM.— 

4 ‘‘(1) To assist Indian tribes in the development 

5 of energy resources and further the goal of Indian self6 determination, the Secretary shall establish and im7 plement an Indian energy resource development pro8 gram to assist consenting Indian tribes and tribal en9 ergy resource development organizations in achieving 

10 the purposes of this title. 

11 ‘‘(2) In carrying out the Program, the Secretary 

12 shall— 

13 ‘‘(A) provide development grants to Indian 

14 tribes and tribal energy resource development or15 ganizations for use in developing or obtaining 

16 the managerial and technical capacity needed to 

17 develop energy resources on Indian land, and to 

18 properly account for resulting energy production 

19 and revenues; 

20 ‘‘(B) provide grants to Indian tribes and 

21 tribal energy resource development organizations 

22 for use in carrying out projects to promote the 

23 integration of energy resources, and to process, 

24 use, or develop those energy resources, on Indian 

25 land; and 
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1 ‘‘(C) provide low-interest loans to Indian 

2 tribes and tribal energy resource development or3 ganizations for use in the promotion of energy 

4 resource development on Indian land and inte5 gration of energy resources. 

6 ‘‘(3) There are authorized to be appropriated to 

7 carry out this subsection such sums as are necessary 

8 for each of fiscal years 2006 through 2016. 

9 ‘‘(b) DEPARTMENT OF ENERGY INDIAN ENERGY EDU10 CATION PLANNING AND MANAGEMENT ASSISTANCE PRO11 GRAM.— 

12 ‘‘(1) The Director shall establish programs to as13 sist consenting Indian tribes in meeting energy edu14 cation, research and development, planning, and 

15 management needs. 

16 ‘‘(2) In carrying out this subsection, the Director 

17 may provide grants, on a competitive basis, to an In18 dian tribe or tribal energy resource development orga19 nization for use in carrying out— 

20 ‘‘(A) energy, energy efficiency, and energy 

21 conservation programs; 

22 ‘‘(B) studies and other activities supporting 

23 tribal acquisitions of energy supplies, services, 

24 and facilities; 
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1 ‘‘(C) planning, construction, development, 

2 operation, maintenance, and improvement of 

3 tribal electrical generation, transmission, and 

4 distribution facilities located on Indian land; 

5 and 

6 ‘‘(D) development, construction, and inter7 connection of electric power transmission facili8 ties located on Indian land with other electric 

9 transmission facilities. 

10 ‘‘(3)(A) The Director may develop, in consulta11 tion with Indian tribes, a formula for providing 

12 grants under this subsection. 

13 ‘‘(B) In providing a grant under this subsection, 

14 the Director shall give priority to an application re15 ceived from an Indian tribe with inadequate electric 

16 service (as determined by the Director). 

17 ‘‘(4) The Secretary of Energy may issue such 

18 regulations as necessary to carry out this subsection. 

19 ‘‘(5) There are authorized to be appropriated to 

20 carry out this subsection $20,000,000 for each of fiscal 

21 years 2006 through 2016. 

22 ‘‘(c) DEPARTMENT OF ENERGY LOAN GUARANTEE

23 PROGRAM.— 

24 ‘‘(1) Subject to paragraph (3), the Secretary of 

25 Energy may provide loan guarantees (as defined in 
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1 section 502 of the Federal Credit Reform Act of 1990 

2 (2 U.S.C. 661a)) for not more than 90 percent of the 

3 unpaid principal and interest due on any loan made 

4 to any Indian tribe for energy development. 

5 ‘‘(2) A loan guarantee under this subsection shall 

6 be made by— 

7 ‘‘(A) a financial institution subject to ex8 amination by the Secretary of Energy; or 

9 ‘‘(B) an Indian tribe, from funds of the In10 dian tribe. 

11 ‘‘(3) The aggregate outstanding amount guaran12 teed by the Secretary of Energy at any time under 

13 this subsection shall not exceed $2,000,000,000. 

14 ‘‘(4) The Secretary of Energy may issue such 

15 regulations as the Secretary of Energy determines are 

16 necessary to carry out this subsection. 

17 ‘‘(5) There are authorized to be appropriated 

18 such sums as are necessary to carry out this sub19 section, to remain available until expended. 

20 ‘‘(6) Not later than 1 year from the date of en21 actment of this section, the Secretary of Energy shall 

22 report to Congress on the financing requirements of 

23 Indian tribes for energy development on Indian land. 

24 ‘‘(d) FEDERAL AGENCIES—INDIAN ENERGY PREF25 ERENCE.— 
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1 ‘‘(1) In purchasing electricity or any other en2 ergy product or byproduct, a Federal agency or de3 partment may give preference to an energy and re4 source production enterprise, partnership, consortium, 

5 corporation, or other type of business organization the 

6 majority of the interest in which is owned and con7 trolled by 1 or more Indian tribes. 

8 ‘‘(2) In carrying out this subsection, a Federal 

9 agency or department shall not— 

10 ‘‘(A) pay more than the prevailing market 

11 price for an energy product or byproduct; or 

12 ‘‘(B) obtain less than prevailing market 

13 terms and conditions. 

14 ‘‘SEC. 2603. INDIAN TRIBAL ENERGY RESOURCE REGULA15 TION. 

16 ‘‘(a) GRANTS.—The Secretary may provide to Indian 

17 tribes, on an annual basis, grants for use in accordance 

18 with subsection (b). 

19 ‘‘(b) USE OF FUNDS.—Funds from a grant provided 

20 under this section may be used— 

21 ‘‘(1) by an Indian tribe for the development of 

22 a tribal energy resource inventory or tribal energy re23 source on Indian land; 
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1 ‘‘(2) by an Indian tribe for the development of 

2 a feasibility study or other report necessary to the de3 velopment of energy resources on Indian land; 

4 ‘‘(3) by an Indian tribe (other than an Indian 

5 Tribe in Alaska except the Metlakatla Indian Com6 munity) for the development and enforcement of tribal 

7 laws (including regulations) relating to tribal energy 

8 resource development and the development of technical 

9 infrastructure to protect the environment under ap10 plicable law; or 

11 ‘‘(4) by a Native Corporation for the develop12 ment and implementation of corporate policies and 

13 the development of technical infrastructure to protect 

14 the environment under applicable law; and 

15 ‘‘(5) by an Indian tribe for the training of em16 ployees that— 

17 ‘‘(A) are engaged in the development of en18 ergy resources on Indian land; or 

19 ‘‘(B) are responsible for protecting the envi20 ronment. 

21 ‘‘(c) OTHER ASSISTANCE.—In carrying out the obliga22 tions of the United States under this title, the Secretary 

23 shall ensure, to the maximum extent practicable and to the 

24 extent of available resources, that upon the request of an 

25 Indian tribe, the Indian tribe shall have available scientific 
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1 and technical information and expertise, for use in the In2 dian tribe’s regulation, development, and management of 

3 energy resources on Indian land. The Secretary may fulfill 

4 this responsibility either directly, through the use of Federal 

5 officials, or indirectly, by providing financial assistance to 

6 the Indian tribe to secure independent assistance. 

7 ‘‘SEC. 2604. LEASES, BUSINESS AGREEMENTS, AND RIGHTS8 OF-WAY INVOLVING ENERGY DEVELOPMENT 

9 OR TRANSMISSION. 

10 ‘‘(a) LEASES AND BUSINESS AGREEMENTS.—Subject 

11 to the provisions of this section— 

12 ‘‘(1) an Indian tribe may, at its discretion, enter 

13 into a lease or business agreement for the purpose of 

14 energy resource development on tribal land, including 

15 a lease or business agreement for— 

16 ‘‘(A) exploration for, extraction of, proc17 essing of, or other development of the Indian 

18 tribe’s energy mineral resources located on tribal 

19 land; and 

20 ‘‘(B) construction or operation of an electric 

21 generation, transmission, or distribution facility 

22 located on tribal land or a facility to process or 

23 refine energy resources developed on tribal land; 

24 and 
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1 ‘‘(2) such lease or business agreement described 

2 in paragraph (1) shall not require the approval of the 

3 Secretary under section 2103 of the Revised Statutes 

4 (25 U.S.C. 81) or any other provision of law, if— 

5 ‘‘(A) the lease or business agreement is exe6 cuted pursuant to a tribal energy resource agree7 ment approved by the Secretary under subsection 

8 (e); 

9 ‘‘(B) the term of the lease or business agree10 ment does not exceed— 

11 ‘‘(i) 30 years; or 

12 ‘‘(ii) in the case of a lease for the pro13 duction of oil resources, gas resources, or 

14 both, 10 years and as long thereafter as oil 

15 or gas is produced in paying quantities; 

16 and 

17 ‘‘(C) the Indian tribe has entered into a 

18 tribal energy resource agreement with the Sec19 retary, as described in subsection (e), relating to 

20 the development of energy resources on tribal 

21 land (including the periodic review and evalua22 tion of the activities of the Indian tribe under 

23 the agreement, to be conducted pursuant to the 

24 provisions required by subsection (e)(2)(D)(i)). 
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1 ‘‘(b) RIGHTS-OF-WAY FOR PIPELINES OR ELECTRIC

2 TRANSMISSION OR DISTRIBUTION LINES.—An Indian tribe 

3 may grant a right-of-way over tribal land for a pipeline 

4 or an electric transmission or distribution line without ap5 proval by the Secretary if— 

6 ‘‘(1) the right-of-way is executed in accordance 

7 with a tribal energy resource agreement approved by 

8 the Secretary under subsection (e); 

9 ‘‘(2) the term of the right-of-way does not exceed 

10 30 years; 

11 ‘‘(3) the pipeline or electric transmission or dis12 tribution line serves— 

13 ‘‘(A) an electric generation, transmission, or 

14 distribution facility located on tribal land; or 

15 ‘‘(B) a facility located on tribal land that 

16 processes or refines energy resources developed on 

17 tribal land; and 

18 ‘‘(4) the Indian tribe has entered into a tribal 

19 energy resource agreement with the Secretary, as de20 scribed in subsection (e), relating to the development 

21 of energy resources on tribal land (including the peri22 odic review and evaluation of the Indian tribe’s ac23 tivities under such agreement described in subpara24 graphs (D) and (E) of subsection (e)(2)). 
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1 ‘‘(c) RENEWALS.—A lease or business agreement en2 tered into or a right-of-way granted by an Indian tribe 

3 under this section may be renewed at the discretion of the 

4 Indian tribe in accordance with this section. 

5 ‘‘(d) VALIDITY.—No lease, business agreement, or 

6 right-of-way relating to the development of tribal energy re7 sources pursuant to the provisions of this section shall be 

8 valid unless the lease, business agreement, or right-of-way 

9 is authorized by the provisions of a tribal energy resource 

10 agreement approved by the Secretary under subsection 

11 (e)(2). 

12 ‘‘(e) TRIBAL ENERGY RESOURCE AGREEMENTS.— 

13 ‘‘(1) On issuance of regulations under paragraph 

14 (8), an Indian tribe may submit to the Secretary for 

15 approval a tribal energy resource agreement gov16 erning leases, business agreements, and rights-of-way 

17 under this section. 

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

19 on which the Secretary receives a tribal energy re20 source agreement submitted by an Indian tribe under 

21 paragraph (1), or not later than 60 days after the 

22 Secretary receives a revised tribal energy resource 

23 agreement submitted by an Indian tribe under para24 graph (4)(C), (or such later date as may be agreed to 

25 by the Secretary and the Indian tribe), the Secretary 
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1 shall approve or disapprove the tribal energy resource 

2 agreement. 

3 ‘‘(B) The Secretary shall approve a tribal energy 

4 resource agreement submitted under paragraph (1) 

5 if— 

6 ‘‘(i) the Secretary determines that the In7 dian tribe has demonstrated that the Indian 

8 tribe has sufficient capacity to regulate the devel9 opment of energy resources of the Indian tribe; 

10 ‘‘(ii) the tribal energy resource agreement 

11 includes provisions required under subparagraph 

12 (D); and 

13 ‘‘(iii) the tribal energy resource agreement 

14 includes provisions that, with respect to a lease, 

15 business agreement, or right-of-way under this 

16 section— 

17 ‘‘(I) ensure the acquisition of necessary 

18 information from the applicant for the 

19 lease, business agreement, or right-of-way; 

20 ‘‘(II) address the term of the lease or 

21 business agreement or the term of convey22 ance of the right-of-way; 

23 ‘‘(III) address amendments and renew24 als; 
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1 ‘‘(IV) address the economic return to 

2 the Indian tribe under leases, business 

3 agreements, and rights-of-way; 

4 ‘‘(V) address technical or other relevant 

5 requirements; 

6 ‘‘(VI) establish requirements for envi7 ronmental review in accordance with sub8 paragraph (C); 

9 ‘‘(VII) ensure compliance with all ap10 plicable environmental laws; 

11 ‘‘(VIII) identify final approval author12 ity; 

13 ‘‘(IX) provide for public notification of 

14 final approvals; 

15 ‘‘(X) establish a process for consulta16 tion with any affected States concerning off17 reservation impacts, if any, identified pur18 suant to the provisions required under sub19 paragraph (C)(i); 

20 ‘‘(XI) describe the remedies for breach 

21 of the lease, business agreement, or right-of22 way; 

23 ‘‘(XII) require each lease, business 

24 agreement, and right-of-way to include a 

25 statement that, in the event that any of its 
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1 provisions violates an express term or re2 quirement set forth in the tribal energy re3 source agreement pursuant to which it was 

4 executed— 

5 ‘‘(aa) such provision shall be null 

6 and void; and 

7 ‘‘(bb) if the Secretary determines 

8 such provision to be material, the Sec9 retary shall have the authority to sus10 pend or rescind the lease, business 

11 agreement, or right-of-way or take 

12 other appropriate action that the Sec13 retary determines to be in the best in14 terest of the Indian tribe; 

15 ‘‘(XIII) require each lease, business 

16 agreement, and right-of-way to provide that 

17 it will become effective on the date on which 

18 a copy of the executed lease, business agree19 ment, or right-of-way is delivered to the 

20 Secretary in accordance with regulations 

21 adopted pursuant to this subsection; and 

22 ‘‘(XIV) include citations to tribal laws, 

23 regulations, or procedures, if any, that set 

24 out tribal remedies that must be exhausted 
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1 before a petition may be submitted to the 

2 Secretary pursuant to paragraph (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 lease, 

7 business agreement, or right-of-way under this sec8 tion, 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— 
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1 ‘‘(i) provisions requiring the Secretary to 

2 conduct a periodic review and evaluation to 

3 monitor the performance of the Indian tribe’s ac4 tivities associated with the development of energy 

5 resources under the tribal energy resource agree6 ment; 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 necessary 

14 to protect such asset, which actions may include 

15 reassumption of responsibility for activities asso16 ciated with the development of energy resources 

17 on tribal land until the violation and conditions 

18 that gave rise to such jeopardy have been cor19 rected. 

20 ‘‘(E) The periodic review and evaluation de21 scribed in subparagraph (D) shall be conducted on an 

22 annual basis, except that, after the third such annual 

23 review and evaluation, the Secretary and the Indian 

24 tribe may mutually agree to amend the tribal energy 

25 resource agreement to authorize the review and eval-
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1 uation required by subparagraph (D) to be conducted 

2 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 para6 graph (1). The Secretary’s review of a tribal energy 

7 resource agreement under the National Environ8 mental Policy Act of 1969 (42 U.S.C. 4321 et seq.) 

9 shall be limited to the direct effects of that approval. 

10 ‘‘(4) If the Secretary disapproves a tribal energy 

11 resource agreement submitted by an Indian tribe 

12 under paragraph (1), the Secretary shall, not later 

13 than 10 days after the date of disapproval— 

14 ‘‘(A) notify the Indian tribe in writing of 

15 the basis for the disapproval; 

16 ‘‘(B) identify what changes or other actions 

17 are required to address the concerns of the Sec18 retary; and 

19 ‘‘(C) provide the Indian tribe with an op20 portunity to revise and resubmit the tribal en21 ergy resource agreement. 

22 ‘‘(5) If an Indian tribe executes a lease or busi23 ness agreement or grants a right-of-way in accordance 

24 with a tribal energy resource agreement approved 

25 under this subsection, the Indian tribe shall, in ac-
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1 cordance with the process and requirements set forth 

2 in the Secretary’s regulations adopted pursuant to 

3 paragraph (8), provide to the Secretary— 

4 ‘‘(A) a copy of the lease, business agreement, 

5 or right-of-way document (including all amend6 ments to and renewals of the document); and 

7 ‘‘(B) in the case of a tribal energy resource 

8 agreement or a lease, business agreement, or 

9 right-of-way that permits payments to be made 

10 directly to the Indian tribe, information and 

11 documentation of those payments sufficient to 

12 enable the Secretary to discharge the trust re13 sponsibility of the United States to enforce the 

14 terms of, and protect the Indian tribe’s rights 

15 under, the lease, business agreement, or right-of16 way. 

17 ‘‘(6)(A) For purposes of the activities to be un18 dertaken by the Secretary pursuant to this section, the 

19 Secretary shall— 

20 ‘‘(i) carry out such activities in a manner 

21 consistent with the trust responsibility of the 

22 United States relating to mineral and other trust 

23 resources; and 

24 ‘‘(ii) act in good faith and in the best inter25 ests of the Indian tribes. 
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1 ‘‘(B) Subject to the provisions of subsections 

2 (a)(2), (b), and (c) waiving the requirement of Secre3 tarial approval of leases, business agreements, and 

4 rights-of-way executed pursuant to tribal energy re5 source agreements approved under this section, and 

6 the provisions of subparagraph (D), nothing in this 

7 section shall absolve the United States from any re8 sponsibility to Indians or Indian tribes, including, 

9 but not limited to, those which derive from the trust 

10 relationship or from any treaties, statutes, and other 

11 laws of the United States, Executive Orders, or agree12 ments between the United States and any Indian 

13 tribe. 

14 ‘‘(C) The Secretary shall continue to have a trust 

15 obligation to ensure that the rights and interests of an 

16 Indian tribe are protected in the event that— 

17 ‘‘(i) any other party to any such lease, busi18 ness agreement, or right-of-way violates any ap19 plicable provision of Federal law or the terms of 

20 any lease, business agreement, or right-of-way 

21 under this section; or 

22 ‘‘(ii) any provision in such lease, business 

23 agreement, or right-of-way violates any express 

24 provision or requirement set forth in the tribal 

25 energy resource agreement pursuant to which the 
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1 lease, business agreement, or right-of-way was 

2 executed. 

3 ‘‘(D) Notwithstanding subparagraph (B), the 

4 United States shall not be liable to any party (includ5 ing any Indian tribe) for any of the negotiated terms 

6 of, or any losses resulting from the negotiated terms 

7 of, a lease, business agreement, or right-of-way exe8 cuted pursuant to and in accordance with a tribal en9 ergy resource agreement approved by the Secretary 

10 under paragraph (2). For the purpose of this sub11 paragraph, the term ‘negotiated terms’ means any 

12 terms or provisions that are negotiated by an Indian 

13 tribe and any other party or parties to a lease, busi14 ness agreement, or right-of-way entered into pursuant 

15 to an approved tribal energy resource agreement. 

16 ‘‘(7)(A) In this paragraph, the term ‘interested 

17 party’ means any person or entity the interests of 

18 which have sustained or will sustain a significant ad19 verse environmental impact as a result of the failure 

20 of an Indian tribe to comply with a tribal energy re21 source agreement of the Indian tribe approved by the 

22 Secretary under paragraph (2). 

23 ‘‘(B) After exhaustion of tribal remedies, and in 

24 accordance with the process and requirements set 

25 forth in regulations adopted by the Secretary pursu-
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1 ant to paragraph (8), an interested party may submit 

2 to the Secretary a petition to review compliance of an 

3 Indian tribe with a tribal energy resource agreement 

4 of the Indian tribe approved by the Secretary under 

5 paragraph (2). 

6 ‘‘(C)(i) Not later than 120 days after the date on 

7 which the Secretary receives a petition under sub8 paragraph (B), the Secretary shall determine whether 

9 the Indian tribe is not in compliance with the tribal 

10 energy resource agreement, as alleged in the petition. 

11 ‘‘(ii) The Secretary may adopt procedures under 

12 paragraph (8) authorizing an extension of time, not 

13 to exceed 120 days, for making the determination 

14 under clause (i) in any case in which the Secretary 

15 determines that additional time is necessary to evalu16 ate the allegations of the petition. 

17 ‘‘(iii) Subject to subparagraph (D), if the Sec18 retary determines that the Indian tribe is not in com19 pliance with the tribal energy resource agreement as 

20 alleged in the petition, the Secretary shall take such 

21 action as is necessary to ensure compliance with the 

22 provisions of the tribal energy resource agreement, 

23 which action may include— 

24 ‘‘(I) temporarily suspending some or all ac25 tivities under a lease, business agreement, or 
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1 right-of-way under this section until the Indian 

2 tribe or such activities are in compliance with 

3 the provisions of the approved tribal energy re4 source agreement; or 

5 ‘‘(II) rescinding approval of all or part of 

6 the tribal energy resource agreement, and if all 

7 of such agreement is rescinded, reassuming the 

8 responsibility for approval of any future leases, 

9 business agreements, or rights-of-way described 

10 in subsections (a) and (b). 

11 ‘‘(D) Prior to seeking to ensure compliance with 

12 the provisions of the tribal energy resource agreement 

13 of an Indian tribe under subparagraph (C)(iii), the 

14 Secretary shall— 

15 ‘‘(i) make a written determination that de16 scribes the manner in which the tribal energy re17 source agreement has been violated; 

18 ‘‘(ii) provide the Indian tribe with a writ19 ten notice of the violations together with the 

20 written determination; and 

21 ‘‘(iii) before taking any action described in 

22 subparagraph (C)(iii) or seeking any other rem23 edy, provide the Indian tribe with a hearing and 

24 a reasonable opportunity to attain compliance 

25 with the tribal energy resource agreement. 
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1 ‘‘(E) An Indian tribe described in subparagraph 

2 (D) shall retain all rights to appeal as provided in 

3 regulations issued by the Secretary. 

4 ‘‘(8) Not later than 1 year after the date of en5 actment of the Indian Tribal Energy Development 

6 and Self-Determination Act of 2005, the Secretary 

7 shall issue regulations that implement the provisions 

8 of this subsection, including— 

9 ‘‘(A) criteria to be used in determining the 

10 capacity of an Indian tribe described in para11 graph (2)(B)(i), including the experience of the 

12 Indian tribe in managing natural resources and 

13 financial and administrative resources available 

14 for use by the Indian tribe in implementing the 

15 approved tribal energy resource agreement of the 

16 Indian tribe; 

17 ‘‘(B) a process and requirements in accord18 ance with which an Indian tribe may— 

19 ‘‘(i) voluntarily rescind a tribal energy 

20 resource agreement approved by the Sec21 retary under this subsection; and 

22 ‘‘(ii) return to the Secretary the re23 sponsibility to approve any future leases, 

24 business agreements, and rights-of-way de25 scribed in this subsection; 
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1 ‘‘(C) provisions setting forth the scope of, 

2 and procedures for, the periodic review and eval3 uation described in subparagraphs (D) and (E) 

4 of paragraph (2), including provisions for review 

5 of transactions, reports, site inspections, and any 

6 other review activities the Secretary determines 

7 to be appropriate; and 

8 ‘‘(D) provisions defining final agency ac9 tions after exhaustion of administrative appeals 

10 from determinations of the Secretary under 

11 paragraph (7). 

12 ‘‘(f) NO EFFECT ON OTHER LAW.—Nothing in this sec13 tion affects the application of— 

14 ‘‘(1) any Federal environment law; 

15 ‘‘(2) the Surface Mining Control and Reclama16 tion Act of 1977 (30 U.S.C. 1201 et seq.); or 

17 ‘‘(3) except as otherwise provided in this title, 

18 the Indian Mineral Development Act of 1982 (25 

19 U.S.C. 2101 et seq.) and the National Environmental 

20 Policy Act of 1969 (42 U.S.C. 4321 et seq.). 

21 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There 

22 are authorized to be appropriated to the Secretary such 

23 sums as are necessary for each of fiscal years 2006 through 

24 2016 to implement the provisions of this section and to 

25 make grants or provide other appropriate assistance to In-
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1 dian tribes to assist the Indian tribes in developing and 

2 implementing tribal energy resource agreements in accord3 ance with the provisions of this section. 

4 ‘‘SEC. 2605. INDIAN MINERAL DEVELOPMENT REVIEW. 

5 ‘‘(a) IN GENERAL.—The Secretary shall conduct a re6 view of all activities being conducted under the Indian Min7 eral Development Act of 1982 (25 U.S.C. 2101 et seq.) as 

8 of that date. 

9 ‘‘(b) REPORT.—Not later than 1 year after the date 

10 of enactment of the Indian Tribal Energy Development and 

11 Self-Determination Act of 2005, the Secretary shall submit 

12 to Congress a report that includes— 

13 ‘‘(1) the results of the review; 

14 ‘‘(2) recommendations to ensure that Indian 

15 tribes have the opportunity to develop Indian energy 

16 resources; and 

17 ‘‘(3) an analysis of the barriers to the develop18 ment of energy resources on Indian land (including 

19 legal, fiscal, market, and other barriers), along with 

20 recommendations for the removal of those barriers.’’. 

21 (b) CONFORMING AMENDMENTS.—The table of contents 

22 for the Energy Policy Act of 1992 is amended by striking 

23 the items relating to title XXVI and inserting the following: 

‘‘Sec. 2601. Definitions. 

‘‘Sec. 2602. Indian tribal energy resource development. 

‘‘Sec. 2603. Indian tribal energy resource regulation. 
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‘‘Sec. 2604. Leases, business agreements, and rights-of-way involving energy development or transmission. 

‘‘Sec. 2605. Indian mineral development review.’’. 

1 § 504. Four Corners transmission line project 

2 The Dine Power Authority, an enterprise of the Navajo 

3 Nation, shall be eligible to receive grants and other assist4 ance as authorized by section 217 of the Department of En5 ergy Organization Act, as added by section 502 of this title, 

6 and section 2602 of the Energy Policy Act of 1992, as 

7 amended by this title, for activities associated with the de8 velopment of a transmission line from the Four Corners 

9 Area to southern Nevada, including related power genera10 tion opportunities. 

11 § 505. Energy efficiency in federally assisted housing 

12 (a) IN GENERAL.—The Secretary of Housing and 

13 Urban Development shall promote energy conservation in 

14 housing that is located on Indian land and assisted with 

15 Federal resources through— 

16 (1) the use of energy-efficient technologies and 

17 innovations (including the procurement of energy-effi18 cient refrigerators and other appliances); 

19 (2) the promotion of shared savings contracts; 

20 and 

21 (3) the use and implementation of such other 

22 similar technologies and innovations as the Secretary 

23 of Housing and Urban Development considers to be 

24 appropriate. 
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1 (b) AMENDMENT.—Section 202(2) of the Native Amer2 ican Housing and Self-Determination Act of 1996 (25 

3 U.S.C. 4132(2)) is amended by inserting ‘‘improvement to 

4 achieve greater energy efficiency,’’ after ‘‘planning,’’. 

5 § 506. Consultation with Indian tribes 

6 In carrying out this title and the amendments made 

7 by this title, the Secretary of Energy and the Secretary 

8 shall, as appropriate and to the maximum extent prac9 ticable, involve and consult with Indian tribes in a manner 

10 that is consistent with the Federal trust and the govern11 ment-to-government relationships between Indian tribes 

12 and the United States. 

13 TITLE VI—NUCLEAR MATTERS 

14 Subtitle A—Price-Anderson Act Amendments 

15 § 601. Short title 

16 This subtitle may be cited as the ‘‘Price-Anderson 

17 Amendments Act of 2005’’ . 

18 § 602. Extension of indemnification authority 

19 (a) INDEMNIFICATION OF NUCLEAR REGULATORY

20 COMMISSION LICENSEES.—Section 170 c. of the Atomic En21 ergy Act of 1954 (42 U.S.C. 2210(c)) is amended— 

22 (1) in the subsection heading, by striking ‘‘LI23 CENSES’’ and inserting ‘‘LICENSEES’’; and 

24 (2) by striking ‘‘December 31, 2003’’ each place 

25 it appears and inserting ‘‘December 31, 2025’’. 
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1 (b) INDEMNIFICATION OF DEPARTMENT OF ENERGY

2 CONTRACTORS.—Section 170 d.(1)(A) of the Atomic Energy 

3 Act of 1954 (42 U.S.C. 2210(d)(1)(A)) is amended by strik4 ing ‘‘December 31, 2006’’ and inserting ‘‘December 31, 

5 2025’’. 

6 (c) INDEMNIFICATION OF NONPROFIT EDUCATIONAL

7 INSTITUTIONS.—Section 170 k. of the Atomic Energy Act 

8 of 1954 (42 U.S.C. 2210(k)) is amended by striking ‘‘August 

9 1, 2002’’ each place it appears and inserting ‘‘December 

10 31, 2025’’. 

11 § 603. Maximum assessment 

12 Section 170 of the Atomic Energy Act of 1954 (42 

13 U.S.C. 2210) is amended— 

14 (1) in the second proviso of the third sentence of 

15 subsection b.(1)— 

16 (A) by striking ‘‘$63,000,000’’ and inserting 

17 ‘‘$95,800,000’’; and 

18 (B) by striking ‘‘$10,000,000 in any 1 

19 year’’ and inserting ‘‘$15,000,000 in any 1 year 

20 (subject to adjustment for inflation under sub21 section t.)’’; and 

22 (2) in subsection t.(1)— 

23 (A) by inserting ‘‘total and annual’’ after 

24 ‘‘amount of the maximum’’; 
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1 (B) by striking ‘‘the date of the enactment 

2 of the Price-Anderson Amendments Act of 1988’’ 

3 and inserting ‘‘August 20, 2003’’; and 

4 (C) in subparagraph (A), by striking ‘‘such 

5 date of enactment’’ and inserting ‘‘August 20, 

6 2003’’. 

7 § 604. Department of Energy liability limit 

8 (a) INDEMNIFICATION OF DEPARTMENT OF ENERGY

9 CONTRACTORS.—Section 170 d. of the Atomic Energy Act 

10 of 1954 (42 U.S.C. 2210(d)) is amended by striking para11 graph (2) and inserting the following: 

12 ‘‘(2) In an agreement of indemnification entered into 

13 under paragraph (1), the Secretary— 

14 ‘‘(A) may require the contractor to provide and 

15 maintain financial protection of such a type and in 

16 such amounts as the Secretary shall determine to be 

17 appropriate to cover public liability arising out of or 

18 in connection with the contractual activity; and 

19 ‘‘(B) shall indemnify the persons indemnified 

20 against such liability above the amount of the finan21 cial protection required, in the amount of 

22 $10,000,000,000 (subject to adjustment for inflation 

23 under subsection t.), in the aggregate, for all persons 

24 indemnified in connection with the contract and for 
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1 each nuclear incident, including such legal costs of the 

2 contractor as are approved by the Secretary.’’. 

3 (b) CONTRACT AMENDMENTS.—Section 170 d. of the 

4 Atomic Energy Act of 1954 (42 U.S.C. 2210(d)) is further 

5 amended by striking paragraph (3) and inserting the fol6 lowing— 

7 ‘‘(3) All agreements of indemnification under which 

8 the Department of Energy (or its predecessor agencies) may 

9 be required to indemnify any person under this section shall 

10 be deemed to be amended, on the date of enactment of the 

11 Price-Anderson Amendments Act of 2005, to reflect the 

12 amount of indemnity for public liability and any applica13 ble financial protection required of the contractor under this 

14 subsection.’’. 

15 (c) LIABILITY LIMIT.—Section 170 e.(1)(B) of the 

16 Atomic Energy Act of 1954 (42 U.S.C. 2210(e)(1)(B)) is 

17 amended— 

18 (1) by striking ‘‘the maximum amount of finan19 cial protection required under subsection b. or’’; and 

20 (2) by striking ‘‘paragraph (3) of subsection d., 

21 whichever amount is more’’ and inserting ‘‘paragraph 

22 (2) of subsection d.’’. 

23 § 605. Incidents outside the United States 

24 (a) AMOUNT OF INDEMNIFICATION.—Section 170 d.(5) 

25 of the Atomic Energy Act of 1954 (42 U.S.C. 2210(d)(5)) 
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1 is amended by striking ‘‘$100,000,000’’ and inserting 

2 ‘‘$500,000,000’’. 

3 (b) LIABILITY LIMIT.—Section 170 e.(4) of the Atomic 

4 Energy Act of 1954 (42 U.S.C. 2210(e)(4)) is amended by 

5 striking ‘‘$100,000,000’’ and inserting ‘‘$500,000,000’’. 

6 § 606. Reports 

7 Section 170 p. of the Atomic Energy Act of 1954 (42 

8 U.S.C. 2210(p)) is amended by striking ‘‘August 1, 1998’’ 

9 and inserting ‘‘December 31, 2021’’. 

10 § 607. Inflation adjustment 

11 Section 170 t. of the Atomic Energy Act of 1954 (42 

12 U.S.C. 2210(t)) is amended— 

13 (1) by redesignating paragraph (2) as para14 graph (3); and 

15 (2) by inserting after paragraph (1) the fol16 lowing: 

17 ‘‘(2) The Secretary shall adjust the amount of indem18 nification provided under an agreement of indemnification 

19 under subsection d. not less than once during each 5-year 

20 period following July 1, 2003, in accordance with the aggre21 gate percentage change in the Consumer Price Index 

22 since— 

23 ‘‘(A) that date, in the case of the first adjustment 

24 under this paragraph; or 
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1 ‘‘(B) the previous adjustment under this para2 graph.’’. 

3 § 608. Treatment of modular reactors 

4 Section 170 b. of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2210(b)) is amended by adding at the end the fol6 lowing: 

7 ‘‘(5)(A) For purposes of this section only, the Commis8 sion shall consider a combination of facilities described in 

9 subparagraph (B) to be a single facility having a rated ca10 pacity of 100,000 electrical kilowatts or more. 

11 ‘‘(B) A combination of facilities referred to in subpara12 graph (A) is 2 or more facilities located at a single site, 

13 each of which has a rated capacity of 100,000 electrical kilo14 watts or more but not more than 300,000 electrical kilo15 watts, with a combined rated capacity of not more than 

16 1,300,000 electrical kilowatts.’’. 

17 § 609. Applicability 

18 The amendments made by sections 603, 604, and 605 

19 do not apply to a nuclear incident that occurs before the 

20 date of the enactment of this Act. 
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1 § 610. Prohibition on assumption by United States 

2 Government of liability for certain foreign 

3 incidents 

4 Section 170 of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2210) is amended by adding at the end the following 

6 new subsection: 

7 ‘‘u. PROHIBITION ON ASSUMPTION OF LIABILITY FOR

8 CERTAIN FOREIGN INCIDENTS.—Notwithstanding this sec9 tion or any other provision of law, no officer of the United 

10 States or of any department, agency, or instrumentality of 

11 the United States Government may enter into any contract 

12 or other arrangement, or into any amendment or modifica13 tion of a contract or other arrangement, the purpose or ef14 fect of which would be to directly or indirectly impose li15 ability on the United States Government, or any depart16 ment, agency, or instrumentality of the United States Gov17 ernment, or to otherwise directly or indirectly require an 

18 indemnity by the United States Government, for nuclear 

19 incidents occurring in connection with the design, construc20 tion, or operation of a production facility or utilization fa21 cility in any country whose government has been identified 

22 by the Secretary of State as engaged in state sponsorship 

23 of terrorist activities (specifically including any country the 

24 government of which, as of September 11, 2001, had been 

25 determined by the Secretary of State under section 620A(a) 

26 of the Foreign Assistance Act of 1961 (22 U.S.C. 2371(a)), 
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1 section 6(j)(1) of the Export Administration Act of 1979 

2 (50 U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms 

3 Export Control Act (22 U.S.C. 2780(d)) to have repeatedly 

4 provided support for acts of international terrorism). This 

5 subsection shall not apply to nuclear incidents occurring 

6 as a result of missions, carried out under the direction of 

7 the Secretary of Energy, the Secretary of Defense, or the 

8 Secretary of State, that are necessary to safely secure, store, 

9 transport, or remove nuclear materials for nuclear safety 

10 or nonproliferation purposes.’’. 

11 § 611. Civil penalties 

12 (a) REPEAL OF AUTOMATIC REMISSION.—Section 

13 234A b.(2) of the Atomic Energy Act of 1954 (42 U.S.C. 

14 2282a(b)(2)) is amended by striking the last sentence. 

15 (b) LIMITATION FOR NOT-FOR-PROFIT INSTITU16 TIONS.—Subsection d. of section 234A of the Atomic Energy 

17 Act of 1954 (42 U.S.C. 2282a(d)) is amended to read as 

18 follows: 

19 ‘‘d.(1) Notwithstanding subsection a., in the case of 

20 any not-for-profit contractor, subcontractor, or supplier, the 

21 total amount of civil penalties paid under subsection a. 

22 may not exceed the total amount of fees paid within any 

23 1-year period (as determined by the Secretary) under the 

24 contract under which the violation occurs. 
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1 ‘‘(2) For purposes of this section, the term ‘not-for2 profit’ means that no part of the net earnings of the con3 tractor, subcontractor, or supplier inures to the benefit of 

4 any natural person or for-profit artificial person.’’. 

5 (c) EFFECTIVE DATE.—The amendments made by this 

6 section shall not apply to any violation of the Atomic En7 ergy Act of 1954 (42 U.S.C. 2011 et seq.) occurring under 

8 a contract entered into before the date of enactment of this 

9 section. 

10 § 612. Financial accountability 

11 (a) AMENDMENT.—Section 170 of the Atomic Energy 

12 Act of 1954 (42 U.S.C. 2210) is amended by adding at the 

13 end the following new subsection: 

14 ‘‘v. FINANCIAL ACCOUNTABILITY.—(1) Notwith15 standing subsection d., the Attorney General may bring an 

16 action in the appropriate United States district court to 

17 recover from a contractor of the Secretary (or subcontractor 

18 or supplier of such contractor) amounts paid by the Federal 

19 Government under an agreement of indemnification under 

20 subsection d. for public liability resulting from conduct 

21 which constitutes intentional misconduct of any corporate 

22 officer, manager, or superintendent of such contractor (or 

23 subcontractor or supplier of such contractor). 

24 ‘‘(2) The Attorney General may recover under 

25 paragraph (1) an amount not to exceed the amount 
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1 of the profit derived by the defendant from the con2 tract. 

3 ‘‘(3) No amount recovered from any contractor 

4 (or subcontractor or supplier of such contractor) 

5 under paragraph (1) may be reimbursed directly or 

6 indirectly by the Department of Energy. 

7 ‘‘(4) Paragraph (1) shall not apply to any non8 profit entity conducting activities under contract for 

9 the Secretary. 

10 ‘‘(5) No waiver of a defense required under this 

11 section shall prevent a defendant from asserting such 

12 defense in an action brought under this subsection. 

13 ‘‘(6) The Secretary shall, by rule, define the 

14 terms ‘profit’ and ‘nonprofit entity’ for purposes of 

15 this subsection. Such rulemaking shall be completed 

16 not later than 180 days after the date of the enact17 ment of this subsection.’’. 

18 (b) EFFECTIVE DATE.—The amendment made by this 

19 section shall not apply to any agreement of indemnification 

20 entered into under section 170 d. of the Atomic Energy Act 

21 of 1954 (42 U.S.C. 2210(d)) before the date of the enactment 

22 of this Act. 
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1 Subtitle B—General Nuclear Matters 

2 § 621. Licenses 

3 Section 103 c. of the Atomic Energy Act of 1954 (42 

4 U.S.C. 2133(c)) is amended by inserting ‘‘from the author5 ization to commence operations’’ after ‘‘forty years’’. 

6 § 622. NRC training program 

7 (a) IN GENERAL.—In order to maintain the human 

8 resource investment and infrastructure of the United States 

9 in the nuclear sciences, health physics, and engineering 

10 fields, in accordance with the statutory authorities of the 

11 Nuclear Regulatory Commission relating to the civilian nu12 clear energy program, the Nuclear Regulatory Commission 

13 shall carry out a training and fellowship program to ad14 dress shortages of individuals with critical nuclear safety 

15 regulatory skills. 

16 (b) AUTHORIZATION OF APPROPRIATIONS.— 

17 (1) IN GENERAL.—There are authorized to be ap18 propriated to the Nuclear Regulatory Commission to 

19 carry out this section $1,000,000 for each of fiscal 

20 years 2005 through 2009. 

21 (2) AVAILABILITY.—Funds made available under 

22 paragraph (1) shall remain available until expended. 

23 § 623. Cost recovery from government agencies 

24 Section 161 w. of the Atomic Energy Act of 1954 (42 

25 U.S.C. 2201(w)) is amended— 
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1 (1) by striking ‘‘for or is issued’’ and all that fol2 lows through ‘‘1702’’ and inserting ‘‘to the Commis3 sion for, or is issued by the Commission, a license or 

4 certificate’’; 

5 (2) by striking ‘‘483a’’ and inserting ‘‘9701’’; 

6 and 

7 (3) by striking ‘‘, of applicants for, or holders of, 

8 such licenses or certificates’’. 

9 § 624. Elimination of pension offset 

10 Section 161 of the Atomic Energy Act of 1954 (42 

11 U.S.C. 2201) is amended by adding at the end the following: 

12 ‘‘y. Exempt from the application of sections 8344 and 

13 8468 of title 5, United States Code, an annuitant who was 

14 formerly an employee of the Commission who is hired by 

15 the Commission as a consultant, if the Commission finds 

16 that the annuitant has a skill that is critical to the perform17 ance of the duties of the Commission.’’. 

18 § 625. Antitrust review 

19 Section 105 c. of the Atomic Energy Act of 1954 (42 

20 U.S.C. 2135(c)) is amended by adding at the end the fol21 lowing: 

22 ‘‘(9) APPLICABILITY.—This subsection does not apply 

23 to an application for a license to construct or operate a 

24 utilization facility or production facility under section 103 
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1 or 104 b. that is filed on or after the date of enactment 

2 of this paragraph.’’. 

3 § 626. Decommissioning 

4 Section 161 i. of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2201(i)) is amended— 

6 (1) by striking ‘‘and (3)’’ and inserting ‘‘(3)’’; 

7 and 

8 (2) by inserting before the semicolon at the end 

9 the following: ‘‘, and (4) to ensure that sufficient 

10 funds will be available for the decommissioning of 

11 any production or utilization facility licensed under 

12 section 103 or 104 b., including standards and re13 strictions governing the control, maintenance, use, 

14 and disbursement by any former licensee under this 

15 Act that has control over any fund for the decommis16 sioning of the facility’’. 

17 § 627. Limitation on legal fee reimbursement 

18 Title II of the Energy Reorganization Act of 1974 (42 

19 U.S.C. 5841 et seq.) is amended by adding at the end the 

20 following new section: 

21 ‘‘LIMITATION ON LEGAL FEE REIMBURSEMENT

22 ‘‘SEC. 212. The Department of Energy shall not, except 

23 as required under a contract entered into before the date 

24 of enactment of this section, reimburse any contractor or 

25 subcontractor of the Department for any legal fees or ex26 penses incurred with respect to a complaint subsequent to— 
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1 ‘‘(1) an adverse determination on the merits 

2 with respect to such complaint against the contractor 

3 or subcontractor by the Director of the Department of 

4 Energy’s Office of Hearings and Appeals pursuant to 

5 part 708 of title 10, Code of Federal Regulations, or 

6 by a Department of Labor Administrative Law Judge 

7 pursuant to section 211 of this Act; or 

8 ‘‘(2) an adverse final judgment by any State or 

9 Federal court with respect to such complaint against 

10 the contractor or subcontractor for wrongful termi11 nation or retaliation due to the making of disclosures 

12 protected under chapter 12 of title 5, United States 

13 Code, section 211 of this Act, or any comparable 

14 State law, 

15 unless the adverse determination or final judgment is re16 versed upon further administrative or judicial review.’’. 

17 § 629. Report on feasibility of developing commercial 

18 nuclear energy generation facilities at ex19 isting Department of Energy sites 

20 Not later than 1 year after the date of the enactment 

21 of this Act, the Secretary of Energy shall submit to Congress 

22 a report on the feasibility of developing commercial nuclear 

23 energy generation facilities at Department of Energy sites 

24 in existence on the date of enactment of this Act. 
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1 § 630. Uranium sales 

2 (a) SALES, TRANSFERS, AND SERVICES.—Section 

3 3112 of the USEC Privatization Act (42 U.S.C. 2297h–10) 

4 is amended by striking subsections (d), (e), and (f) and in5 serting the following: 

6 ‘‘(3) The Secretary may transfer to the Corporation, 

7 notwithstanding subsections (b)(2) and (d), natural ura8 nium in amounts sufficient to fulfill the Department of En9 ergy’s commitments under Article 4(B) of the Agreement be10 tween the Department and the Corporation dated June 17, 

11 2002. 

12 ‘‘(d) INVENTORY SALES.—(1) In addition to the trans13 fers and sales authorized under subsections (b) and (c) and 

14 under paragraph (5) of this subsection, the United States 

15 Government may transfer or sell uranium in any form sub16 ject to paragraphs (2), (3), and (4). 

17 ‘‘(2) Except as provided in subsections (b) and (c) and 

18 paragraph (5) of this subsection, no sale or transfer of ura19 nium shall be made under this subsection by the United 

20 States Government unless— 

21 ‘‘(A) the President determines that the material 

22 is not necessary for national security needs and the 

23 sale or transfer has no adverse impact on implemen24 tation of existing government-to-government agree25 ments; 
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1 ‘‘(B) the price paid to the appropriate Federal 

2 agency, if the transaction is a sale, will not be less 

3 than the fair market value of the material; and 

4 ‘‘(C) the sale or transfer to commercial nuclear 

5 power end users is made pursuant to a contract of at 

6 least 3 years’ duration. 

7 ‘‘(3) Except as provided in paragraph (5), the United 

8 States Government shall not make any transfer or sale of 

9 uranium in any form under this subsection that would 

10 cause the total amount of uranium transferred or sold pur11 suant to this subsection that is delivered for consumption 

12 by commercial nuclear power end users to exceed— 

13 ‘‘(A) 3,000,000 pounds of U3 O8 equivalent in 

14 fiscal year 2005, 2006, 2007, 2008, or 2009; 

15 ‘‘(B) 5,000,000 pounds of U3O8 equivalent in fis16 cal year 2010 or 2011; 

17 ‘‘(C) 7,000,000 pounds of U3O8 equivalent in fis18 cal year 2012; and 

19 ‘‘(D) 10,000,000 pounds of U3O8 equivalent in 

20 fiscal year 2013 or any fiscal year thereafter. 

21 ‘‘(4) Except for sales or transfers under paragraph (5), 

22 for the purposes of this subsection, the recovery of uranium 

23 from uranium bearing materials transferred or sold by the 

24 United States Government to the domestic uranium indus25 try shall be the preferred method of making uranium avail-
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1 able. The recovered uranium shall be counted against the 

2 annual maximum deliveries set forth in this section, when 

3 such uranium is sold to end users. 

4 ‘‘(5) The United States Government may make the fol5 lowing sales and transfers: 

6 ‘‘(A) Sales or transfers to a Federal agency if the 

7 material is transferred for the use of the receiving 

8 agency without any resale or transfer to another enti9 ty and the material does not meet commercial speci10 fications. 

11 ‘‘(B) Sales or transfers to any person for na12 tional security purposes, as determined by the Sec13 retary. 

14 ‘‘(C) Sales or transfers to any State or local 

15 agency or nonprofit, charitable, or educational insti16 tution for use other than the generation of electricity 

17 for commercial use. 

18 ‘‘(D) Sales or transfers to the Department of En19 ergy research reactor sales program. 

20 ‘‘(E) Sales or transfers, at fair market value, for 

21 emergency purposes in the event of a disruption in 

22 supply to commercial nuclear power end users in the 

23 United States. 
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1 ‘‘(F) Sales or transfers, at fair market value, for 

2 use in a commercial reactor in the United States with 

3 nonstandard fuel requirements. 

4 ‘‘(G) Sales or transfers provided for under law 

5 for use by the Tennessee Valley Authority in relation 

6 to the Department of Energy’s highly enriched ura7 nium or tritium programs. 

8 ‘‘(6) For purposes of this subsection, the term ‘United 

9 States Government’ does not include the Tennessee Valley 

10 Authority. 

11 ‘‘(e) SAVINGS PROVISION.—Nothing in this subchapter 

12 modifies the terms of the Russian HEU Agreement. 

13 ‘‘(f) SERVICES.—Notwithstanding any other provision 

14 of this section, if the Secretary determines that the Corpora15 tion has failed, or may fail, to perform any obligation 

16 under the Agreement between the Department of Energy 

17 and the Corporation dated June 17, 2002, and as amended 

18 thereafter, which failure could result in termination of the 

19 Agreement, the Secretary shall notify Congress, in such a 

20 manner that affords Congress an opportunity to comment, 

21 prior to a determination by the Secretary whether termi22 nation, waiver, or modification of the Agreement is re23 quired. The Secretary is authorized to take such action as 

24 he determines necessary under the Agreement to terminate, 
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1 waive, or modify provisions of the Agreement to achieve its 

2 purposes.’’. 

3 (b) REPORT.—Not later than 3 years after the date 

4 of enactment of this Act, the Secretary of Energy shall re5 port to Congress on the implementation of this section. The 

6 report shall include a discussion of available excess ura7 nium inventories; all sales or transfers made by the United 

8 States Government; the impact of such sales or transfers 

9 on the domestic uranium industry, the spot market ura10 nium price, and the national security interests of the 

11 United States; and any steps taken to remediate any ad12 verse impacts of such sales or transfers. 

13 § 631. Cooperative research and development and spe14 cial demonstration projects for the ura15 nium mining industry 

16 (a) AUTHORIZATION OF APPROPRIATIONS.—There are 

17 authorized to be appropriated to the Secretary of Energy 

18 $10,000,000 for each of fiscal years 2006, 2007, and 2008 

19 for— 

20 (1) cooperative, cost-shared agreements between 

21 the Department of Energy and domestic uranium 

22 producers to identify, test, and develop improved in 

23 situ leaching mining technologies, including low-cost 

24 environmental restoration technologies that may be 
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1 applied to sites after completion of in situ leaching 

2 operations; and 

3 (2) funding for competitively selected demonstra4 tion projects with domestic uranium producers relat5 ing to— 

6 (A) enhanced production with minimal en7 vironmental impacts; 

8 (B) restoration of well fields; and 

9 (C) decommissioning and decontamination 

10 activities. 

11 (b) DOMESTIC URANIUM PRODUCER.—For purposes of 

12 this section, the term ‘‘domestic uranium producer’’ has the 

13 meaning given that term in section 1018(4) of the Energy 

14 Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except that the 

15 term shall not include any producer that has not produced 

16 uranium from domestic reserves on or after July 30, 1998. 

17 (c) LIMITATION.—No activities funded under this sec18 tion may be carried out in the State of New Mexico. 

19 § 632. Whistleblower protection 

20 (a) DEFINITION OF EMPLOYER.—Section 211(a)(2) of 

21 the Energy Reorganization Act of 1974 (42 U.S.C. 

22 5851(a)(2)) is amended— 

23 (1) in subparagraph (C), by striking ‘‘and’’ at 

24 the end; 
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1 (2) in subparagraph (D), by striking the period 

2 at the end and inserting ‘‘; and’’ and 

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

4 ‘‘(E) a contractor or subcontractor of the 

5 Commission.’’. 

6 (b) DE NOVO REVIEW.—Subsection (b) of such section 

7 211 is amended by adding at the end the following new 

8 paragraph: 

9 ‘‘(4) If the Secretary has not issued a final deci10 sion within 540 days after the filing of a complaint 

11 under paragraph (1), and there is no showing that 

12 such delay is due to the bad faith of the person seek13 ing relief under this paragraph, such person may 

14 bring an action at law or equity for de novo review 

15 in the appropriate district court of the United States, 

16 which shall have jurisdiction over such an action 

17 without regard to the amount in controversy.’’. 

18 § 633. Medical isotope production 

19 Section 134 of the Atomic Energy Act of 1954 (42 

20 U.S.C. 2160d) is amended— 

21 (1) in subsection a., by striking ‘‘a. The Commis22 sion’’ and inserting ‘‘a. IN GENERAL.—Except as 

23 provided in subsection b., the Commission’’; 

24 (2) by redesignating subsection b. as subsection 

25 c.; and 
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1 (3) by inserting after subsection a. the following: 

2 ‘‘b. MEDICAL ISOTOPE PRODUCTION.— 

3 ‘‘(1) DEFINITIONS.—In this subsection: 

4 ‘‘(A) HIGHLY ENRICHED URANIUM.—The 

5 term ‘highly enriched uranium’ means uranium 

6 enriched to include concentration of U–235 above 

7 20 percent. 

8 ‘‘(B) MEDICAL ISOTOPE.—The term ‘med9 ical isotope’ includes Molybdenum 99, Iodine 

10 131, Xenon 133, and other radioactive materials 

11 used to produce a radiopharmaceutical for diag12 nostic, therapeutic procedures or for research and 

13 development. 

14 ‘‘(C) RADIOPHARMACEUTICAL.—The term 

15 ‘radiopharmaceutical’ means a radioactive iso16 tope that— 

17 ‘‘(i) contains byproduct material com18 bined with chemical or biological material; 

19 and 

20 ‘‘(ii) is designed to accumulate tempo21 rarily in a part of the body for therapeutic 

22 purposes or for enabling the production of a 

23 useful image for use in a diagnosis of a 

24 medical condition. 
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1 ‘‘(D) RECIPIENT COUNTRY.—The term ‘re2 cipient country’ means Canada, Belgium, 

3 France, Germany, and the Netherlands. 

4 ‘‘(2) LICENSES.—The Commission may issue a 

5 license authorizing the export (including shipment to 

6 and use at intermediate and ultimate consignees spec7 ified in the license) to a recipient country of highly 

8 enriched uranium for medical isotope production if, 

9 in addition to any other requirements of this Act (ex10 cept subsection a.), the Commission determines that— 

11 ‘‘(A) a recipient country that supplies an 

12 assurance letter to the United States Government 

13 in connection with the consideration by the Com14 mission of the export license application has in15 formed the United States Government that any 

16 intermediate consignees and the ultimate con17 signee specified in the application are required 

18 to use the highly enriched uranium solely to 

19 produce medical isotopes; and 

20 ‘‘(B) the highly enriched uranium for med21 ical isotope production will be irradiated only in 

22 a reactor in a recipient country that— 

23 ‘‘(i) uses an alternative nuclear reactor 

24 fuel; or 
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1 ‘‘(ii) is the subject of an agreement 

2 with the United States Government to con3 vert to an alternative nuclear reactor fuel 

4 when alternative nuclear reactor fuel can be 

5 used in the reactor. 

6 ‘‘(3) REVIEW OF PHYSICAL PROTECTION RE7 QUIREMENTS.— 

8 ‘‘(A) IN GENERAL.—The Commission shall 

9 review the adequacy of physical protection re10 quirements that, as of the date of an application 

11 under paragraph (2), are applicable to the trans12 portation and storage of highly enriched ura13 nium for medical isotope production or control 

14 of residual material after irradiation and extrac15 tion of medical isotopes. 

16 ‘‘(B) IMPOSITION OF ADDITIONAL REQUIRE17 MENTS.—If the Commission determines that ad18 ditional physical protection requirements are 

19 necessary (including a limit on the quantity of 

20 highly enriched uranium that may be contained 

21 in a single shipment), the Commission shall im22 pose such requirements as license conditions or 

23 through other appropriate means. 

24 ‘‘(4) FIRST REPORT TO CONGRESS.— 
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1 ‘‘(A) NAS STUDY.—The Secretary shall 

2 enter into an arrangement with the National 

3 Academy of Sciences to conduct a study to deter4 mine— 

5 ‘‘(i) the feasibility of procuring sup6 plies of medical isotopes from commercial 

7 sources that do not use highly enriched ura8 nium; 

9 ‘‘(ii) the current and projected demand 

10 and availability of medical isotopes in reg11 ular current domestic use; 

12 ‘‘(iii) the progress that is being made 

13 by the Department of Energy and others to 

14 eliminate all use of highly enriched ura15 nium in reactor fuel, reactor targets, and 

16 medical isotope production facilities; and 

17 ‘‘(iv) the potential cost differential in 

18 medical isotope production in the reactors 

19 and target processing facilities if the prod20 ucts were derived from production systems 

21 that do not involve fuels and targets with 

22 highly enriched uranium. 

23 ‘‘(B) FEASIBILITY.—For the purpose of this 

24 subsection, the use of low enriched uranium to 
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1 produce medical isotopes shall be determined to 

2 be feasible if— 

3 ‘‘(i) low enriched uranium targets have 

4 been developed and demonstrated for use in 

5 the reactors and target processing facilities 

6 that produce significant quantities of med7 ical isotopes to serve United States needs for 

8 such isotopes; 

9 ‘‘(ii) sufficient quantities of medical 

10 isotopes are available from low enriched 

11 uranium targets and fuel to meet United 

12 States domestic needs; and 

13 ‘‘(iii) the average anticipated total cost 

14 increase from production of medical isotopes 

15 in such facilities without use of highly en16 riched uranium is less than 10 percent. 

17 ‘‘(C) REPORT BY THE SECRETARY.—Not 

18 later than 5 years after the date of enactment of 

19 the Energy Policy Act of 2005, the Secretary 

20 shall submit to Congress a report that— 

21 ‘‘(i) contains the findings of the Na22 tional Academy of Sciences made in the 

23 study under subparagraph (A); and 

24 ‘‘(ii) discloses the existence of any com25 mitments from commercial producers to 
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1 provide domestic requirements for medical 

2 isotopes without use of highly enriched ura3 nium consistent with the feasibility criteria 

4 described in subparagraph (B) not later 

5 than the date that is 4 years after the date 

6 of submission of the report. 

7 ‘‘(5) SECOND REPORT TO CONGRESS.—If the 

8 study of the National Academy of Sciences determines 

9 under paragraph (4)(A)(i) that the procurement of 

10 supplies of medical isotopes from commercial sources 

11 that do not use highly enriched uranium is feasible, 

12 but the Secretary is unable to report the existence of 

13 commitments under paragraph (4)(C)(ii), not later 

14 than the date that is 6 years after the date of enact15 ment of the Energy Policy Act of 2005, the Secretary 

16 shall submit to Congress a report that describes op17 tions for developing domestic supplies of medical iso18 topes in quantities that are adequate to meet domestic 

19 demand without the use of highly enriched uranium 

20 consistent with the cost increase described in para21 graph (4)(B)(iii). 

22 ‘‘(6) CERTIFICATION.—At such time as commer23 cial facilities that do not use highly enriched ura24 nium are capable of meeting domestic requirements 

25 for medical isotopes, within the cost increase described 
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1 in paragraph (4)(B)(iii) and without impairing the 

2 reliable supply of medical isotopes for domestic utili3 zation, the Secretary shall submit to Congress a cer4 tification to that effect. 

5 ‘‘(7) SUNSET PROVISION.—After the Secretary 

6 submits a certification under paragraph (6), the 

7 Commission shall, by rule, terminate its review of ex8 port license applications under this subsection.’’. 

9 § 634. Fernald byproduct material 

10 Title III of the Nuclear Waste Policy Act of 1982 (42 

11 U.S.C. 10221 et seq.) is amended by adding at the end the 

12 following new section: 

13 ‘‘FERNALD BYPRODUCT MATERIAL

14 ‘‘SEC. 307. Notwithstanding any other law, the mate15 rial in the concrete silos at the Fernald uranium processing 

16 facility managed on the date of enactment of this section 

17 by the Department shall be considered byproduct material 

18 (as defined by section 11 e.(2) of the Atomic Energy Act 

19 of 1954 (42 U.S.C. 2014(e)(2))). The Department may dis20 pose of the material in a facility regulated by the Commis21 sion or by an Agreement State. If the Department disposes 

22 of the material in such a facility, the Commission or the 

23 Agreement State shall regulate the material as byproduct 

24 material under that Act. This material shall remain subject 

25 to the jurisdiction of the Department until it is received 

26 at a commercial, Commission-licensed, or Agreement State- 
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1 licensed facility, at which time the material shall be subject 

2 to the health and safety requirements of the Commission 

3 or the Agreement State with jurisdiction over the disposal 

4 site.’’. 

5 § 635. Safe disposal of greater-than-class c radio6 active waste 

7 Subtitle D of title I of the Nuclear Waste Policy Act 

8 of 1982 (42 U.S.C. 10171) is amended by adding at the 

9 end the following new section: 

10 ‘‘SAFE DISPOSAL OF GREATER-THAN-CLASS C RADIOACTIVE

11 WASTE

12 ‘‘SEC. 152. (a) DESIGNATION OF RESPONSIBILITY.— 

13 The Secretary shall designate an Office within the Depart14 ment to have the responsibility for activities needed to de15 velop a new, or use an existing, facility for safely disposing 

16 of all low-level radioactive waste with concentrations of 

17 radionuclides that exceed the limits established by the Com18 mission for Class C radioactive waste (referred to in this 

19 section as ‘GTCC waste’). 

20 ‘‘(b) COMPREHENSIVE PLAN.—The Secretary shall de21 velop a comprehensive plan for permanent disposal of 

22 GTCC waste which includes plans for a disposal facility. 

23 This plan shall be transmitted to Congress in a series of 

24 reports, including the following: 

25 ‘‘(1) REPORT ON SHORT-TERM PLAN.—Not later 

26 than 180 days after the date of enactment of this sec-
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1 tion, the Secretary shall submit to Congress a plan 

2 describing the Secretary’s operational strategy for 

3 continued recovery and storage of GTCC waste until 

4 a permanent disposal facility is available. 

5 ‘‘(2) UPDATE OF 1987 REPORT.— 

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

7 after the date of enactment of this section, the 

8 Secretary shall submit to Congress an update of 

9 the Secretary’s February 1987 report submitted 

10 to Congress that made comprehensive rec11 ommendations for the disposal of GTCC waste. 

12 ‘‘(B) CONTENTS.—The update under this 

13 paragraph shall contain— 

14 ‘‘(i) a detailed description and identi15 fication of the GTCC waste that is to be dis16 posed; 

17 ‘‘(ii) a description of current domestic 

18 and international programs, both Federal 

19 and commercial, for management and dis20 position of GTCC waste; 

21 ‘‘(iii) an identification of the Federal 

22 and private options and costs for the safe 

23 disposal of GTCC waste; 

24 ‘‘(iv) an identification of the options 

25 for ensuring that, wherever possible, genera-
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1 tors and users of GTCC waste bear all rea2 sonable costs of waste disposal; 

3 ‘‘(v) an identification of any new stat4 utory authority required for disposal of 

5 GTCC waste; and 

6 ‘‘(vi) in coordination with the Envi7 ronmental Protection Agency and the Com8 mission, an identification of any new regu9 latory guidance needed for the disposal of 

10 GTCC waste. 

11 ‘‘(3) REPORT ON COST AND SCHEDULE FOR COM12 PLETION OF ENVIRONMENTAL IMPACT STATEMENT

13 AND RECORD OF DECISION.—Not later than 180 days 

14 after the date of submission of the update required 

15 under paragraph (2), the Secretary shall submit to 

16 Congress a report containing an estimate of the cost 

17 and schedule to complete a draft and final environ18 mental impact statement and to issue a record of de19 cision for a permanent disposal facility, utilizing ei20 ther a new or existing facility, for GTCC waste.’’. 

21 § 636. Prohibition on nuclear exports to countries that 

22 sponsor terrorism 

23 (a) IN GENERAL.—Section 129 of the Atomic Energy 

24 Act of 1954 (42 U.S.C. 2158) is amended— 
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1 (1) by inserting ‘‘a.’’ before ‘‘No nuclear mate2 rials and equipment’’; and 

3 (2) by adding at the end the following new sub4 section: 

5 ‘‘b.(1) Notwithstanding any other provision of law, in6 cluding specifically section 121 of this Act, and except as 

7 provided in paragraphs (2) and (3), no nuclear materials 

8 and equipment or sensitive nuclear technology, including 

9 items and assistance authorized by section 57 b. of this Act 

10 and regulated under part 810 of title 10, Code of Federal 

11 Regulations, and nuclear-related items on the Commerce 

12 Control List maintained under part 774 of title 15 of the 

13 Code of Federal Regulations, shall be exported or reexported, 

14 or transferred or retransferred whether directly or indi15 rectly, and no Federal agency shall issue any license, ap16 proval, or authorization for the export or reexport, or trans17 fer, or retransfer, whether directly or indirectly, of these 

18 items or assistance (as defined in this paragraph) to any 

19 country whose government has been identified by the Sec20 retary of State as engaged in state sponsorship of terrorist 

21 activities (specifically including any country the govern22 ment of which has been determined by the Secretary of State 

23 under section 620A(a) of the Foreign Assistance Act of 1961 

24 (22 U.S.C. 2371(a)), section 6(j)(1) of the Export Adminis25 tration Act of 1979 (50 U.S.C. App. 2405(j)(1)), or section 
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1 40(d) of the Arms Export Control Act (22 U.S.C. 2780(d)) 

2 to have repeatedly provided support for acts of inter3 national terrorism). 

4 ‘‘(2) This subsection shall not apply to exports, reex5 ports, transfers, or retransfers of radiation monitoring tech6 nologies, surveillance equipment, seals, cameras, tamper-in7 dication devices, nuclear detectors, monitoring systems, or 

8 equipment necessary to safely store, transport, or remove 

9 hazardous materials, whether such items, services, or infor10 mation are regulated by the Department of Energy, the De11 partment of Commerce, or the Nuclear Regulatory Commis12 sion, except to the extent that such technologies, equipment, 

13 seals, cameras, devices, detectors, or systems are available 

14 for use in the design or construction of nuclear reactors or 

15 nuclear weapons. 

16 ‘‘(3) The President may waive the application of para17 graph (1) to a country if the President determines and cer18 tifies to Congress that the waiver will not result in any 

19 increased risk that the country receiving the waiver will 

20 acquire nuclear weapons, nuclear reactors, or any materials 

21 or components of nuclear weapons and— 

22 ‘‘(A) the government of such country has not 

23 within the preceding 12-month period willfully aided 

24 or abetted the international proliferation of nuclear 

25 explosive devices to individuals or groups or willfully 
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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 public 

12 health and safety.’’. 

13 (b) APPLICABILITY TO EXPORTS APPROVED FOR

14 TRANSFER BUT NOT TRANSFERRED.—Subsection b. of sec15 tion 129 of Atomic Energy Act of 1954, as added by sub16 section (a) of this section, shall apply with respect to ex17 ports 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 § 638. National uranium stockpile 

21 The USEC Privatization Act (42 U.S.C. 2297h et seq.) 

22 is amended by adding at the end the following new section: 
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1 ‘‘SEC. 3118. NATIONAL URANIUM STOCKPILE. 

2 ‘‘(a) STOCKPILE CREATION.—The Secretary of Energy 

3 may create a national low-enriched uranium stockpile with 

4 the goals to— 

5 ‘‘(1) enhance national energy security; and 

6 ‘‘(2) reduce global proliferation threats. 

7 ‘‘(b) SOURCE OF MATERIAL.—The Secretary shall ob8 tain 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 or 

14 transfer of materials in the stockpile shall occur pursuant 

15 to section 3112.’’. 

16 § 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 the 

20 public of such discussions within 15 days after they occur. 

21 The Commission shall promptly make a transcript of the 

22 recording available to the public on request, except to the 

23 extent that public disclosure is exempted or prohibited by 

24 law. This section shall not apply to a meeting, within the 

25 meaning of that term under section 552b(a)(2) of title 5, 

26 United States Code. 
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1 § 640. Employee benefits 

2 Section 3110(a) 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 Sec7 retary shall implement such actions as are necessary to en8 sure 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 Dif12 fusion Plant; 

13 ‘‘(B) has been an employee of the Department of 

14 Energy’s predecessor management and integrating 

15 contractor (or its first or second tier subcontractors), 

16 or of the Corporation, at the Portsmouth, Ohio, or the 

17 Paducah, Kentucky, facility; and 

18 ‘‘(C) was eligible as of April 1, 2005, to partici19 pate in or transfer into the Multiple Employer Pen20 sion Plan or the associated multiple employer retiree 

21 health care benefit plans, as defined in those plans, 

22 shall continue to be eligible to participate in or transfer 

23 into such pension or health care benefit plans.’’. 
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1 Subtitle C—Additional Hydrogen Production 

2 Provisions 

3 § 651. Hydrogen production programs 

4 (a) ADVANCED REACTOR HYDROGEN COGENERATION

5 PROJECT.— 

6 (1) PROJECT ESTABLISHMENT.— The Secretary 

7 is directed to establish an Advanced Reactor Hydro8 gen Cogeneration Project. 

9 (2) PROJECT DEFINITION.— The project shall 

10 consist of the research, development, design, construc11 tion, and operation of a hydrogen production cogen12 eration research facility that, relative to the current 

13 commercial reactors, enhances safety features, reduces 

14 waste production, enhances thermal efficiencies, in15 creases proliferation resistance, and has the potential 

16 for improved economics and physical security in reac17 tor siting. This facility shall be constructed so as to 

18 enable research and development on advanced reactors 

19 of the type selected and on alternative approaches for 

20 reactor-based production of hydrogen. 

21 (3) PROJECT MANAGEMENT.— 

22 (A) MANAGEMENT.—The project shall be 

23 managed within the Department by the Office of 

24 Nuclear Energy, Science, and Technology. 

25 (B) LEAD LABORATORY.—The lead labora26 tory for the project, providing the site for the re-
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1 actor construction, shall be the Idaho National 

2 Laboratory (in this subsection referred to as 

3 ‘‘INL’’). 

4 (C) STEERING COMMITTEE.—The Secretary 

5 shall establish a national steering committee 

6 with membership from the national laboratories, 

7 universities, and industry to provide advice to 

8 the Secretary and the Director of the Office of 

9 Nuclear Energy, Science, and Technology on 

10 technical and program management aspects of 

11 the project. 

12 (D) COLLABORATION.—Project activities 

13 shall be conducted at INL, other national labora14 tories, universities, domestic industry, and inter15 national partners. 

16 (4) PROJECT REQUIREMENTS.— 

17 (A) RESEARCH AND DEVELOPMENT.— 

18 (i) IN GENERAL.—The project shall in19 clude planning, research and development, 

20 design, and construction of an advanced, 

21 next-generation, nuclear energy system suit22 able for enabling further research and devel23 opment on advanced reactor technologies 

24 and alternative approaches for reactor-based 

25 generation of hydrogen. 
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1 (ii) REACTOR TEST CAPABILITIES AT

2 INL.—The project shall utilize, where appro3 priate, extensive reactor test capabilities 

4 resident at INL. 

5 (iii) ALTERNATIVES.—The project shall 

6 be designed to explore technical, environ7 mental, and economic feasibility of alter8 native approaches for reactor-based hydro9 gen production. 

10 (iv) INDUSTRIAL LEAD.—The indus11 trial lead for the project shall be a company 

12 incorporated in the United States. 

13 (B) INTERNATIONAL COLLABORATION.— 

14 (i) IN GENERAL.—The Secretary shall 

15 seek international cooperation, participa16 tion, and financial contribution in this 

17 project. 

18 (ii) ASSISTANCE FROM INTERNATIONAL

19 PARTNERS.—The Secretary may contract 

20 for assistance from specialists or facilities 

21 from member countries of the Generation IV 

22 International Forum, the Russian Federa23 tion, or other international partners where 

24 such specialists or facilities provide access 
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1 to cost-effective and relevant skills or test 

2 capabilities. 

3 (iii) GENERATION IV INTERNATIONAL

4 FORUM.—International activities shall be 

5 coordinated with the Generation IV Inter6 national Forum. 

7 (iv) GENERATION IV NUCLEAR ENERGY

8 SYSTEMS PROGRAM.—The Secretary may 

9 combine this project with the Generation IV 

10 Nuclear Energy Systems Program. 

11 (C) DEMONSTRATION.—The overall project, 

12 which may involve demonstration of selected 

13 project objectives in a partner nation, must dem14 onstrate both electricity and hydrogen production 

15 and may provide flexibility, where technically 

16 and economically feasible in the design and con17 struction, to enable tests of alternative reactor 

18 core and cooling configurations. 

19 (D) PARTNERSHIPS.—The Secretary shall 

20 establish cost-shared partnerships with domestic 

21 industry or international participants for the re22 search, development, design, construction, and 

23 operation of the research facility, and preference 

24 in determining the final project structure shall 

25 be given to an overall project which retains 
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1 United States leadership while maximizing cost 

2 sharing opportunities and minimizing Federal 

3 funding responsibilities. 

4 (E) TARGET DATE.—The Secretary shall se5 lect technologies and develop the project to pro6 vide initial testing of either hydrogen production 

7 or electricity generation by 2011, or provide a 

8 report to Congress explaining why this date is 

9 not feasible. 

10 (F) WAIVER OF CONSTRUCTION

11 TIMELINES.—The Secretary is authorized to con12 duct the Advanced Reactor Hydrogen Cogenera13 tion Project without the constraints of DOE 

14 Order 413.3, relating to program and project 

15 management for the acquisition of capital assets, 

16 as necessary to meet the specified operational 

17 date. 

18 (G) COMPETITION.—The Secretary may 

19 fund up to 2 teams for up to 1 year to develop 

20 detailed proposals for competitive evaluation and 

21 selection of a single proposal and concept for fur22 ther progress. The Secretary shall define the for23 mat of the competitive evaluation of proposals. 

24 (H) USE OF FACILITIES.—Research facili25 ties in industry, national laboratories, or univer-
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1 sities either within the United States or with co2 operating international partners may be used to 

3 develop the enabling technologies for the research 

4 facility. Utilization of domestic university-based 

5 facilities shall be encouraged to provide edu6 cational opportunities for student development. 

7 (I) ROLE OF NUCLEAR REGULATORY COM8 MISSION.— 

9 (i) IN GENERAL.—The Nuclear Regu10 latory Commission shall have licensing and 

11 regulatory authority for any reactor author12 ized under this subsection, pursuant to sec13 tion 202 of the Energy Reorganization Act 

14 of 1974 (42 U.S.C. 5842). 

15 (ii) RISK-BASED CRITERIA.—The Sec16 retary shall seek active participation of the 

17 Nuclear Regulatory Commission throughout 

18 the project to develop risk-based criteria for 

19 any future commercial development of a 

20 similar reactor architecture. 

21 (J) REPORT.—The Secretary shall develop 

22 and transmit to Congress a comprehensive 

23 project plan not later than 3 months after the 

24 date of enactment of this Act. The project plan 
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1 shall be updated annually with each annual 

2 budget submission. 

3 (b) ADVANCED NUCLEAR REACTOR TECHNOLOGIES.— 

4 The Secretary shall— 

5 (1) prepare a detailed roadmap for carrying out 

6 the provisions in this subtitle related to advanced nu7 clear reactor technologies and for implementing the 

8 recommendations related to advanced nuclear reactor 

9 technologies that are included in the report trans10 mitted under subsection (d); and 

11 (2) provide for the establishment of 5 projects in 

12 geographic areas that are regionally and climatically 

13 diverse to demonstrate the commercial production of 

14 hydrogen at existing nuclear power plants, including 

15 one demonstration project at a national laboratory or 

16 institution of higher education using an advanced 

17 gas-cooled reactor. 

18 (c) COLLOCATION WITH HYDROGEN PRODUCTION FA19 CILITY.—Section 103 of the Atomic Energy Act of 1954 (42 

20 U.S.C. 2011) is amended by adding at the end the following 

21 new subsection: 

22 ‘‘g. The Commission shall give priority to the licensing 

23 of a utilization facility that is collocated with a hydrogen 

24 production facility. The Commission shall issue a final de25 cision approving or disapproving the issuance of a license 
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1 to construct and operate a utilization facility not later than 

2 the expiration of 3 years after the date of the submission 

3 of such application, if the application references a Commis4 sion-certified design and an early site permit, unless the 

5 Commission determines that the applicant has proposed 

6 material and substantial changes to the design or the site 

7 design parameters.’’. 

8 (d) REPORT.—The Secretary shall transmit to the 

9 Congress not later than 120 days after the date of enactment 

10 of this Act a report containing detailed summaries of the 

11 roadmaps prepared under subsection (b)(1), descriptions of 

12 the Secretary’s progress in establishing the projects and 

13 other programs required under this section, and rec14 ommendations for promoting the availability of advanced 

15 nuclear reactor energy technologies for the production of hy16 drogen. 

17 (e) AUTHORIZATION OF APPROPRIATIONS.—For the 

18 purpose of supporting research programs related to the de19 velopment of advanced nuclear reactor technologies under 

20 this section, there are authorized to be appropriated to the 

21 Secretary— 

22 (1) $65,000,000 for fiscal year 2006; 

23 (2) $74,750,000 for fiscal year 2007; 

24 (3) $85,962,500 for fiscal year 2008; 

25 (4) $98,856,875 for fiscal year 2009; 
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1 (5) $113,685,406 for fiscal year 2010; 

2 (6) $130,738,217 for fiscal year 2011; 

3 (7) $150,348,950 for fiscal year 2012; 

4 (8) $172,901,292 for fiscal year 2013; 

5 (9) $198,836,486 for fiscal year 2014; and 

6 (10) $228,661,959 for fiscal year 2015. 

7 § 652. Definitions 

8 For purposes of this subtitle— 

9 (1) the term ‘‘advanced nuclear reactor tech10 nologies’’ means— 

11 (A) technologies related to advanced light 

12 water reactors that may be commercially avail13 able in the near-term, including mid-sized reac14 tors with passive safety features, for the genera15 tion of electric power from nuclear fission and 

16 the production of hydrogen; and 

17 (B) technologies related to other nuclear re18 actors that may require prototype demonstration 

19 prior to availability in the mid-term or long20 term, including high-temperature, gas-cooled re21 actors and liquid metal reactors, for the genera22 tion of electric power from nuclear fission and 

23 the production of hydrogen; 

24 (2) the term ‘‘institution of higher education’’ 

25 has the meaning given to that term in section 101(a) 
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1 of the Higher Education Act of 1965 (20 U.S.C. 

2 1001(a)); and 

3 (3) the term ‘‘Secretary’’ means the Secretary of 

4 Energy. 

5 Subtitle D—Nuclear Security 

6 § 661. Nuclear facility threats 

7 (a) STUDY.—The President, in consultation with the 

8 Nuclear Regulatory Commission (referred to in this subtitle 

9 as the ‘‘Commission’’) and other appropriate Federal, 

10 State, and local agencies and private entities, shall conduct 

11 a study to identify the types of threats that pose an appre12 ciable risk to the security of the various classes of facilities 

13 licensed by the Commission under the Atomic Energy Act 

14 of 1954 (42 U.S.C. 2011 et seq.). Such study shall take into 

15 account, but not be limited to— 

16 (1) the events of September 11, 2001; 

17 (2) an assessment of physical, cyber, biochemical, 

18 and other terrorist threats; 

19 (3) the potential for attack on facilities by mul20 tiple coordinated teams of a large number of individ21 uals; 

22 (4) the potential for assistance in an attack from 

23 several persons employed at the facility; 

24 (5) the potential for suicide attacks; 
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1 (6) the potential for water-based and air-based 

2 threats; 

3 (7) the potential use of explosive devices of con4 siderable size and other modern weaponry; 

5 (8) the potential for attacks by persons with a 

6 sophisticated knowledge of facility operations; 

7 (9) the potential for fires, especially fires of long 

8 duration; 

9 (10) the potential for attacks on spent fuel ship10 ments by multiple coordinated teams of a large num11 ber of individuals; 

12 (11) the adequacy of planning to protect the pub13 lic health and safety at and around nuclear facilities, 

14 as appropriate, in the event of a terrorist attack 

15 against a nuclear facility; and 

16 (12) the potential for theft and diversion of nu17 clear materials from such facilities. 

18 (b) SUMMARY AND CLASSIFICATION REPORT.—Not 

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

20 Act, the President shall transmit to Congress and the Com21 mission a report— 

22 (1) summarizing the types of threats identified 

23 under subsection (a); and 
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1 (2) classifying each type of threat identified 

2 under subsection (a), in accordance with existing laws 

3 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 for7 eign government or other person, or otherwise 

8 falling under the responsibilities of the Federal 

9 Government; or 

10 (B) involving the type of risks that Com11 mission licensees should be responsible for guard12 ing 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 a 

16 report on actions taken, or to be taken, to address the types 

17 of threats identified under subsection (b)(2)(A), including 

18 identification of the Federal, State, and local agencies re19 sponsible for carrying out the obligations and authorities 

20 of the United States. Such report may include a classified 

21 annex, as appropriate. 

22 (d) REGULATIONS.—Not later than 180 days after the 

23 date on which a report is transmitted under subsection (b), 

24 the Commission may revise, by rule, the design basis threats 

25 issued before the date of enactment of this section as the 
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1 Commission considers appropriate based on the summary 

2 and classification report. 

3 (e) PHYSICAL SECURITY PROGRAM.—The Commission 

4 shall establish an operational safeguards response evalua5 tion program that ensures that the physical protection ca6 pability and operational safeguards response for sensitive 

7 nuclear facilities, as determined by the Commission con8 sistent with the protection of public health and the common 

9 defense and security, shall be tested periodically through 

10 Commission approved or designed, observed, and evaluated 

11 force-on-force exercises to determine whether the ability to 

12 defeat the design basis threat is being maintained. For pur13 poses of this subsection, the term ‘‘sensitive nuclear facili14 ties’’ includes at a minimum commercial nuclear power 

15 plants and category I fuel cycle facilities. 

16 (f) CONTROL OF INFORMATION.—Notwithstanding any 

17 other provision of law, the Commission may undertake any 

18 rulemaking under this subtitle in a manner that will fully 

19 protect safeguards and classified national security informa20 tion. 

21 (g) FEDERAL SECURITY COORDINATORS.— 

22 (1) REGIONAL OFFICES.—Not later than 18 

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

24 Commission shall assign a Federal security coordi-
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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 deter9 mines 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 security 

16 measures among the private security forces at 

17 such classes of facilities as the Commission deter18 mines to be appropriate and Federal, State, and 

19 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. 
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1 § 662. Fingerprinting for criminal history record 

2 checks 

3 (a) IN GENERAL.—Subsection a. of section 149 of the 

4 Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is amend5 ed— 

6 (1) by striking ‘‘a. The Nuclear’’ and all that fol7 lows 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 permitted 
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1 unescorted access or access, whichever is applica2 ble, as described in subparagraph (B). 

3 ‘‘(B) INDIVIDUALS REQUIRED TO BE

4 FINGERPRINTED.—The Commission shall require 

5 to be fingerprinted each individual who— 

6 ‘‘(i) is permitted unescorted access to— 

7 ‘‘(I) a utilization facility; or 

8 ‘‘(II) radioactive material or other 

9 property subject to regulation by the 

10 Commission that the Commission de11 termines to be of such significance to 

12 the public health and safety or the 

13 common defense and security as to 

14 warrant fingerprinting and back15 ground checks; or 

16 ‘‘(ii) is permitted access to safeguards 

17 information under section 147.’’; 

18 (2) by striking ‘‘All fingerprints obtained by a 

19 licensee or applicant as required in the preceding sen20 tence’’ and inserting the following: 

21 ‘‘(2) SUBMISSION TO THE ATTORNEY GEN22 ERAL.—All fingerprints obtained by an individual or 

23 entity as required in paragraph (1)’’; 

24 (3) by striking ‘‘The costs of any identification 

25 and records check conducted pursuant to the pre-
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1 ceding sentence shall be paid by the licensee or appli2 cant.’’ and inserting the following: 

3 ‘‘(3) COSTS.—The costs of any identification and 

4 records check conducted pursuant to paragraph (1) 

5 shall be paid by the individual or entity required to 

6 conduct the fingerprinting under paragraph (1)(A).’’; 

7 and 

8 (4) by striking ‘‘Notwithstanding any other pro9 vision of law, the Attorney General may provide all 

10 the results of the search to the Commission, and, in 

11 accordance with regulations prescribed under this sec12 tion, the Commission may provide such results to the 

13 licensee or applicant submitting such fingerprints.’’ 

14 and inserting the following: 

15 ‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE16 QUIRED TO CONDUCT FINGERPRINTING.—Notwith17 standing any other provision of law, the Attorney 

18 General may provide all the results of the search to 

19 the Commission, and, in accordance with regulations 

20 prescribed under this section, the Commission may 

21 provide such results to the individual or entity re22 quired to conduct the fingerprinting under paragraph 

23 (1)(A).’’. 
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1 (b) ADMINISTRATION.—Subsection c. of section 149 of 

2 the Atomic Energy Act of 1954 (42 U.S.C. 2169(c)) is 

3 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), ‘‘unescorted 

8 access to the facility of a licensee or applicant’’ and 

9 inserting ‘‘unescorted access to a utilization facility, 

10 radioactive material, or other property described in 

11 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. 2169(d)) 

14 is redesignated as subsection e., and the following is inserted 

15 after subsection c.: 

16 ‘‘d. USE OF OTHER BIOMETRIC METHODS.—The Com17 mission may satisfy any requirement for a person to con18 duct fingerprinting under this section using any other bio19 metric method for identification approved for use by the 

20 Attorney General, after the Commission has approved the 

21 alternative method by rule.’’. 
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1 § 663. Use of firearms by security personnel of licens2 ees and certificate holders of the Commis3 sion 

4 Section 161 of the Atomic Energy Act of 1954 (42 

5 U.S.C. 2201) is amended by adding at the end the following 

6 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 hand12 gun, a rifle or shotgun, a short-barreled shotgun, a 

13 short-barreled rifle, a machinegun, a semiautomatic 

14 assault weapon, ammunition for the foregoing, or a 

15 large capacity ammunition feeding device, authorize 

16 security personnel of licensees and certificate holders 

17 of the Commission (including employees of contractors 

18 of licensees and certificate holders) to receive, possess, 

19 transport, import, and use 1 or more of those weap20 ons, ammunition, or devices, if the Commission deter21 mines 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— 
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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 per5 sons; 

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 certificate 

14 holder that are designated by the Com15 mission; or 

16 ‘‘(II) radioactive material or other 

17 property owned or possessed by a per18 son that is a licensee or certificate 

19 holder of the Commission, or that is 

20 being transported to or from a facility 

21 owned or operated by such a licensee or 

22 certificate holder, and that has been de23 termined by the Commission to be of 

24 significance to the common defense and 
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1 security or public health and safety; 

2 and 

3 ‘‘(iv) are discharging their official du4 ties. 

5 ‘‘(2) Such receipt, possession, transportation, im6 portation, 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 firearm 

19 under Federal or State law. 

20 ‘‘(3) This subsection shall become effective upon 

21 the issuance of guidelines by the Commission, with 

22 the approval of the Attorney General, to govern the 

23 implementation of this subsection. 

24 ‘‘(4) In this subsection, the terms ‘handgun’, 

25 ‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
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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, United 

5 States Code.’’. 

6 § 664. Unauthorized introduction of dangerous weap7 ons 

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 insert10 ing ‘‘or subject to the licensing authority of the Commission 

11 or to certification by the Commission under this Act or any 

12 other Act’’ before the period at the end. 

13 § 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 fa18 cility’’; 

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)— 
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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 enrichment, 

10 uranium conversion, or nuclear fuel fabrication facil11 ity subject to licensing or certification under this Act 

12 during construction of the facility, if the destruction 

13 or damage caused or attempted to be caused could ad14 versely affect public health and safety during the op15 eration 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 Com21 mission that, before the date of the offense, the Nuclear 

22 Regulatory Commission determines, by order or regu23 lation published in the Federal Register, is of signifi24 cance to the public health and safety or to common 

25 defense and security,’’. 
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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 both, 

4 and, if death results to any person, shall be imprisoned for 

5 any term of years or for life’’ both places it appears and 

6 inserting ‘‘$1,000,000 or imprisoned for up to life without 

7 parole’’. 

8 § 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 adding 

11 at the end the following new section: 

12 ‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS. 

13 ‘‘a. The Nuclear Regulatory Commission shall establish 

14 a system to ensure that materials described in subsection 

15 b., when transferred or received in the United States by any 

16 party pursuant to an import or export license issued pursu17 ant to this Act, are accompanied by a manifest describing 

18 the type and amount of materials being transferred or re19 ceived. Each individual receiving or accompanying the 

20 transfer of such materials shall be subject to a security back21 ground check conducted by appropriate Federal entities. 

22 ‘‘b. Except as otherwise provided by the Commission 

23 by regulation, the materials referred to in subsection a. are 

24 byproduct materials, source materials, special nuclear ma25 terials, high-level radioactive waste, spent nuclear fuel, 
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1 transuranic waste, and low-level radioactive waste (as de2 fined in section 2(16) of the Nuclear Waste Policy Act of 

3 1982 (42 U.S.C. 10101(16))).’’. 

4 (b) REGULATIONS.—Not later than 1 year after the 

5 date of the enactment of this Act, and from time to time 

6 thereafter as it considers necessary, the Nuclear Regulatory 

7 Commission shall issue regulations identifying radioactive 

8 materials or classes of individuals that, consistent with the 

9 protection of public health and safety and the common de10 fense and security, are appropriate exceptions to the re11 quirements of section 170C of the Atomic Energy Act of 

12 1954, as added by subsection (a) of this section. 

13 (c) EFFECTIVE DATE.—The amendment made by sub14 section (a) shall take effect upon the issuance of regulations 

15 under subsection (b), except that the background check re16 quirement shall become effective on a date established by 

17 the Commission. 

18 (d) EFFECT ON OTHER LAW.—Nothing in this section 

19 or the amendment made by this section shall waive, modify, 

20 or affect the application of chapter 51 of title 49, United 

21 States Code, part A of subtitle V of title 49, United States 

22 Code, part B of subtitle VI of title 49, United States Code, 

23 and title 23, United States Code. 
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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 § 667. Department of Homeland Security consultation 

5 Before issuing a license for a utilization facility, the 

6 Nuclear Regulatory Commission shall consult with the De7 partment of Homeland Security concerning the potential 

8 vulnerabilities of the location of the proposed facility to ter9 rorist attack. 

10 § 668. Authorization of appropriations 

11 (a) IN GENERAL.—There are authorized to be appro12 priated such sums as are necessary to carry out this subtitle 

13 and the amendments made by this subtitle. 

14 (b) NUCLEAR REGULATORY COMMISSION USER FEES

15 AND ANNUAL CHARGES.—Section 6101 of the Omnibus 

16 Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is 

17 amended— 

18 (1) in subsection (a)— 

19 (A) by striking ‘‘Except as provided in 

20 paragraph (3), the’’ and inserting ‘‘The’’ in 

21 paragraph (1); and 

22 (B) by striking paragraph (3); and 

23 (2) in subsection (c)— 

24 (A) by striking ‘‘and’’ at the end of para25 graph (2)(A)(i); 
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1 (B) by striking the period at the end of 

2 paragraph (2)(A)(ii) and inserting a semicolon; 

3 (C) by adding at the end of paragraph 

4 (2)(A) the following new clauses: 

5 ‘‘(iii) amounts appropriated to the 

6 Commission for the fiscal year for imple7 mentation of section 3116 of the Ronald W. 

8 Reagan National Defense Authorization Act 

9 for Fiscal Year 2005; and 

10 ‘‘(iv) amounts appropriated to the 

11 Commission for homeland security activities 

12 of the Commission for the fiscal year, except 

13 for the costs of fingerprinting and back14 ground checks required by section 149 of the 

15 Atomic Energy Act of 1954 (42 U.S.C. 

16 2169) and the costs of conducting security 

17 inspections.’’; and 

18 (D) by amending paragraph (2)(B)(v) to 

19 read as follows: 

20 ‘‘(v) 90 percent for fiscal year 2005 

21 and each fiscal year thereafter.’’. 

22 (c) REPEAL.—Section 7601 of the Consolidated Omni23 bus Budget Reconciliation Act of 1985 (42 U.S.C. 2213) 

24 is repealed. 
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1 TITLE VII—VEHICLES AND 

2 FUELS 

3 Subtitle A—Existing Programs 

4 § 701. Use of alternative fuels by dual-fueled vehicles 

5 Section 400AA(a)(3)(E) of the Energy Policy and 

6 Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended to 

7 read as follows: 

8 ‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 

9 section shall be operated on alternative fuels unless the Sec10 retary determines that an agency qualifies for a waiver of 

11 such requirement for vehicles operated by the agency in a 

12 particular geographic area in which— 

13 ‘‘(I) the alternative fuel otherwise required to be 

14 used in the vehicle is not reasonably available to re15 tail purchasers of the fuel, as certified to the Sec16 retary by the head of the agency; or 

17 ‘‘(II) the cost of the alternative fuel otherwise re18 quired to be used in the vehicle is unreasonably more 

19 expensive compared to gasoline, as certified to the 

20 Secretary by the head of the agency. 

21 ‘‘(ii) The Secretary shall monitor compliance with this 

22 subparagraph by all such fleets and shall report annually 

23 to Congress on the extent to which the requirements of this 

24 subparagraph are being achieved. The report shall include 

25 information on annual reductions achieved from the use of 
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1 petroleum-based fuels and the problems, if any, encountered 

2 in acquiring alternative fuels.’’. 

3 § 704. Incremental cost allocation 

4 Section 303(c) of the Energy Policy Act of 1992 (42 

5 U.S.C. 13212(c)) is amended by striking ‘‘may’’ and insert6 ing ‘‘shall’’. 

7 § 705. Lease condensates 

8 (a) LEASE CONDENSATE FUELS.—Section 301 of the 

9 Energy Policy Act of 1992 (42 U.S.C. 13211) is amended— 

10 (1) in paragraph (2), by inserting ‘‘mixtures 

11 containing 50 percent or more by volume of lease con12 densate or fuels extracted from lease condensate;’’ 

13 after ‘‘liquefied petroleum gas;’’; 

14 (2) in paragraph (13), by striking ‘‘and’’ at the 

15 end; 

16 (3) in paragraph (14)— 

17 (A) by inserting ‘‘mixtures containing 50 

18 percent or more by volume of lease condensate or 

19 fuels extracted from lease condensate,’’ after ‘‘liq20 uefied petroleum gas,’’; and 

21 (B) by striking the period and inserting ‘‘; 

22 and’’; 

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

24 ‘‘(15) the term ‘lease condensate’ means a mix25 ture, primarily of pentanes and heavier hydrocarbons, 
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1 that is recovered as a liquid from natural gas in lease 

2 separation facilities.’’. 

3 (b) LEASE CONDENSATE USE CREDITS.— 

4 (1) IN GENERAL.—Title III of the Energy Policy 

5 Act of 1992 (42 U.S.C. 13211 et seq.) is amended by 

6 adding at the end the following: 

7 ‘‘SEC. 313. LEASE CONDENSATE USE CREDITS. 

8 ‘‘(a) IN GENERAL.—Subject to subsection (d), the Sec9 retary shall allocate 1 credit under this section to a fleet 

10 or covered person for each qualifying volume of the lease 

11 condensate component of fuel containing at least 50 percent 

12 lease condensate, or fuels extracted from lease condensate, 

13 after the date of enactment of this section for use by the 

14 fleet or covered person in vehicles owned or operated by the 

15 fleet or covered person that weigh more than 8,500 pounds 

16 gross vehicle weight rating. 

17 ‘‘(b) REQUIREMENTS.—A credit allocated under this 

18 section— 

19 ‘‘(1) shall be subject to the same exceptions, au20 thority, documentation, and use of credits that are 

21 specified for qualifying volumes of biodiesel in section 

22 312; and 

23 ‘‘(2) shall not be considered a credit under sec24 tion 508. 

25 ‘‘(c) REGULATION.— 
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1 ‘‘(1) IN GENERAL.—Subject to subsection (d), not 

2 later than January 1, 2006, after the collection of ap3 propriate information and data that consider usage 

4 options, uses in other industries, products, or proc5 esses, potential volume capacities, costs, air emissions, 

6 and fuel efficiencies, the Secretary shall issue a regu7 lation establishing requirements and procedures for 

8 the implementation of this section. 

9 ‘‘(2) QUALIFYING VOLUME.—The regulation shall 

10 include a determination of an appropriate qualifying 

11 volume for lease condensate, except that in no case 

12 shall the Secretary determine that the qualifying vol13 ume for lease condensate is less than 1,125 gallons. 

14 ‘‘(d) APPLICABILITY.—This section applies unless the 

15 Secretary finds that the use of lease condensate as an alter16 native fuel would adversely affect public health or safety 

17 or ambient air quality or the environment.’’. 

18 (2) TABLE OF CONTENTS AMENDMENT.—The 

19 table of contents of the Energy Policy Act of 1992 (42 

20 U.S.C. prec. 13201) is amended by adding at the end 

21 of the items relating to title III the following: 

‘‘Sec. 313. Lease condensate use credits.’’. 

22 (c) EMERGENCY EXEMPTION.—Section 301 of the En23 ergy Policy Act of 1992 (42 U.S.C. 13211) is amended in 

24 paragraph (9)(E) by inserting before the semicolon at the 

25 end ‘‘, including vehicles directly used in the emergency re-
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1 pair of transmission lines and in the restoration of elec2 tricity service following power outages, as determined by 

3 the Secretary’’. 

4 § 706. Review of Energy Policy Act of 1992 programs 

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

6 date of enactment of this section, the Secretary of Energy 

7 shall complete a study to determine the effect that titles III, 

8 IV, and V of the Energy Policy Act of 1992 (42 U.S.C. 

9 13211 et seq.) have had on— 

10 (1) the development of alternative fueled vehicle 

11 technology; 

12 (2) the availability of that technology in the 

13 market; and 

14 (3) the cost of alternative fueled vehicles. 

15 (b) TOPICS.—As part of the study under subsection 

16 (a), the Secretary shall specifically identify— 

17 (1) the number of alternative fueled vehicles ac18 quired by fleets or covered persons required to acquire 

19 alternative fueled vehicles; 

20 (2) the quantity, by type, of alternative fuel ac21 tually used in alternative fueled vehicles acquired by 

22 fleets or covered persons; 

23 (3) the quantity of petroleum displaced by the 

24 use of alternative fuels in alternative fueled vehicles 

25 acquired by fleets or covered persons; 
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1 (4) the direct and indirect costs of compliance 

2 with requirements under titles III, IV, and V of the 

3 Energy Policy Act of 1992 (42 U.S.C. 13211 et seq.), 

4 including— 

5 (A) vehicle acquisition requirements im6 posed on fleets or covered persons; 

7 (B) administrative and recordkeeping ex8 penses; 

9 (C) fuel and fuel infrastructure costs; 

10 (D) associated training and employee ex11 penses; and 

12 (E) any other factors or expenses the Sec13 retary determines to be necessary to compile reli14 able estimates of the overall costs and benefits of 

15 complying with programs under those titles for 

16 fleets, covered persons, and the national economy; 

17 (5) the existence of obstacles preventing compli18 ance with vehicle acquisition requirements and in19 creased use of alternative fuel in alternative fueled ve20 hicles acquired by fleets or covered persons; and 

21 (6) the projected impact of amendments to the 

22 Energy Policy Act of 1992 made by this title. 

23 (c) REPORT.—Upon completion of the study under this 

24 section, the Secretary shall submit to Congress a report that 

25 describes the results of the study and includes any rec-
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1 ommendations of the Secretary for legislative or adminis2 trative changes concerning the alternative fueled vehicle re3 quirements under titles III, IV and V of the Energy Policy 

4 Act of 1992 (42 U.S.C. 13211 et seq.). 

5 § 707. Report concerning compliance with alternative 

6 fueled vehicle purchasing requirements 

7 Section 310(b)(1) of the Energy Policy Act of 1992 (42 

8 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year after 

9 the date of enactment of this subsection’’ and inserting 

10 ‘‘February 15, 2006’’. 

11 Subtitle B—Hybrid Vehicles, Advanced Vehicles, and 

12 Fuel Cell Buses 

13 PART 1—HYBRID VEHICLES 

14 § 711. Hybrid vehicles 

15 The Secretary of Energy shall accelerate efforts di16 rected toward the improvement of batteries and other re17 chargeable energy storage systems, power electronics, hybrid 

18 systems integration, and other technologies for use in hybrid 

19 vehicles. 

20 § 712. Hybrid retrofit and electric conversion program 

21 (a) ESTABLISHMENT.—The Administrator of the En22 vironmental Protection Agency, in consultation with the 

23 Secretary, shall establish a program for awarding grants 

24 on a competitive basis to entities for the installation of hy-
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1 brid retrofit and electric conversion technologies for combus2 tion engine vehicles. 

3 (b) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

4 under this section only— 

5 (1) to a local or State governmental entity; 

6 (2) to a for-profit or nonprofit corporation or 

7 other person; or 

8 (3) to 1 or more contracting entities that service 

9 combustion engine vehicles for an entity described in 

10 paragraph (1) or (2). 

11 (c) AWARDS.— 

12 (1) IN GENERAL.—The Administrator shall seek, 

13 to the maximum extent practicable, to ensure a broad 

14 geographic distribution of grants under this section. 

15 (2) PREFERENCES.—In making awards of 

16 grants under this section, the Administrator shall give 

17 preference to proposals that— 

18 (A) will achieve the greatest reductions in 

19 emissions per proposal or per vehicle; or 

20 (B) involve the use of emissions control ret21 rofit or conversion technology. 

22 (d) CONDITIONS OF GRANT.—A grant shall be pro23 vided under this section on the conditions that— 
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1 (1) combustion engine vehicles on which hybrid 

2 retrofit or conversion technology are to be dem3 onstrated— 

4 (A) with the retrofit or conversion tech5 nology applied will achieve low-emission stand6 ards consistent with the Voluntary National Low 

7 Emission Vehicle Program for Light-Duty Vehi8 cles and Light-Duty Trucks (40 CFR Part 86) 

9 without model year restrictions; and 

10 (B) will be used for a minimum of 3 years; 

11 (2) grant funds will be used for the purchase of 

12 hybrid retrofit or conversion technology, including 

13 State taxes and contract fees; and 

14 (3) grant recipients will provide at least 15 per15 cent of the total cost of the retrofit or conversion, in16 cluding the purchase of hybrid retrofit or conversion 

17 technology and all necessary labor for installation of 

18 the retrofit or conversion. 

19 (e) VERIFICATION.—Not later than 90 days after the 

20 date of enactment of this Act, the Administrator shall pub21 lish in the Federal Register procedures to verify— 

22 (1) the hybrid retrofit or conversion technology 

23 to be demonstrated; and 

24 (2) that grants are administered in accordance 

25 with this section. 
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1 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated to the Administrator to carry 

3 out this section, to remain available until expended— 

4 (1) $20,000,000 for fiscal year 2005; 

5 (2) $35,000,000 for fiscal year 2006; 

6 (3) $45,000,000 for fiscal year 2007; and 

7 (4) such sums as are necessary for each of fiscal 

8 years 2008 and 2009. 

9 PART 2—ADVANCED VEHICLES 

10 § 721. Definitions 

11 In this part: 

12 (1) ALTERNATIVE FUELED VEHICLE.— 

13 (A) IN GENERAL.—The term ‘‘alternative 

14 fueled vehicle’’ means a vehicle propelled solely 

15 on an alternative fuel (as defined in section 301 

16 of the Energy Policy Act of 1992 (42 U.S.C. 

17 13211)). 

18 (B) EXCLUSION.—The term ‘‘alternative 

19 fueled vehicle’’ does not include a vehicle that the 

20 Secretary determines, by regulation, does not 

21 yield substantial environmental benefits over a 

22 vehicle operating solely on gasoline or diesel de23 rived from fossil fuels. 

24 (2) FUEL CELL VEHICLE.—The term ‘‘fuel cell 

25 vehicle’’ means a vehicle propelled by an electric 
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1 motor powered by a fuel cell system that converts 

2 chemical energy into electricity by combining oxygen 

3 (from air) with hydrogen fuel that is stored on the ve4 hicle or is produced onboard by reformation of a hy5 drocarbon fuel. Such fuel cell system may or may not 

6 include the use of auxiliary energy storage systems to 

7 enhance vehicle performance. 

8 (3) HYBRID VEHICLE.—The term ‘‘hybrid vehi9 cle’’ means a medium or heavy duty vehicle propelled 

10 by an internal combustion engine or heat engine 

11 using any combustible fuel and an onboard recharge12 able energy storage device. 

13 (4) NEIGHBORHOOD ELECTRIC VEHICLE.—The 

14 term ‘‘neighborhood electric vehicle’’ means a motor 

15 vehicle that— 

16 (A) meets the definition of a low-speed vehi17 cle (as defined in part 571 of title 49, Code of 

18 Federal Regulations); 

19 (B) meets the definition of a zero-emission 

20 vehicle (as defined in section 86.1702–99 of title 

21 40, Code of Federal Regulations); 

22 (C) meets the requirements of Federal Motor 

23 Vehicle Safety Standard No. 500; and 

24 (D) has a maximum speed of not greater 

25 than 25 miles per hour. 
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1 (5) PILOT PROGRAM.—The term ‘‘pilot program’’ 

2 means the competitive grant program established 

3 under section 722. 

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

5 the Secretary of Energy. 

6 (7) ULTRA-LOW SULFUR DIESEL VEHICLE.—The 

7 term ‘‘ultra-low sulfur diesel vehicle’’ means a vehicle 

8 manufactured in any of model years 2004 through 

9 2006 powered by a heavy-duty diesel engine that— 

10 (A) is fueled by diesel fuel that contains sul11 fur at not more than 15 parts per million; and 

12 (B) emits not more than the lesser of— 

13 (i) for vehicles manufactured in model 

14 years 2004 through 2006, 2.5 grams per 

15 brake horsepower-hour of nonmethane hy16 drocarbons and oxides of nitrogen and .01 

17 grams per brake horsepower-hour of partic18 ulate matter; or 

19 (ii) the quantity of emissions of non20 methane hydrocarbons, oxides of nitrogen, 

21 and particulate matter of the best-per22 forming technology of ultra-low sulfur diesel 

23 vehicles of the same class and application 

24 that are commercially available. 
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1 § 722. Pilot program 

2 (a) ESTABLISHMENT.—The Secretary, in consultation 

3 with the Secretary of Transportation, shall establish a com4 petitive grant pilot program, to be administered through 

5 the Clean Cities Program of the Department of Energy, to 

6 provide not more than 15 geographically dispersed project 

7 grants to State governments, local governments, or metro8 politan transportation authorities to carry out a project or 

9 projects for the purposes described in subsection (b). 

10 (b) GRANT PURPOSES.—A grant under this section 

11 may be used for the following purposes: 

12 (1) The acquisition of alternative fueled vehicles 

13 or fuel cell vehicles, including— 

14 (A) passenger vehicles (including neighbor15 hood electric vehicles); and 

16 (B) motorized 2-wheel bicycles, scooters, or 

17 other vehicles for use by law enforcement per18 sonnel or other State or local government or met19 ropolitan transportation authority employees. 

20 (2) The acquisition of alternative fueled vehicles, 

21 hybrid vehicles, or fuel cell vehicles, including— 

22 (A) buses used for public transportation or 

23 transportation to and from schools; 

24 (B) delivery vehicles for goods or services; 

25 and 
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1 (C) ground support vehicles at public air2 ports (including vehicles to carry baggage or 

3 push or pull airplanes toward or away from ter4 minal gates). 

5 (3) The acquisition of ultra-low sulfur diesel ve6 hicles. 

7 (4) Installation or acquisition of infrastructure 

8 necessary to directly support an alternative fueled ve9 hicle, fuel cell vehicle, or hybrid vehicle project funded 

10 by the grant, including fueling and other support 

11 equipment. 

12 (5) Operation and maintenance of vehicles, in13 frastructure, and equipment acquired as part of a 

14 project funded by the grant. 

15 (c) APPLICATIONS.— 

16 (1) REQUIREMENTS.— 

17 (A) IN GENERAL.—The Secretary shall issue 

18 requirements for applying for grants under the 

19 pilot program. 

20 (B) MINIMUM REQUIREMENTS.—At a min21 imum, the Secretary shall require that an appli22 cation for a grant— 

23 (i) be submitted by the head of a State 

24 or local government or a metropolitan 

25 transportation authority, or any combina-
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1 tion thereof, and a registered participant in 

2 the Clean Cities Program of the Department 

3 of Energy; and 

4 (ii) include— 

5 (I) a description of the project 

6 proposed in the application, including 

7 how the project meets the requirements 

8 of this part; 

9 (II) an estimate of the ridership 

10 or degree of use of the project; 

11 (III) an estimate of the air pollu12 tion emissions reduced and fossil fuel 

13 displaced as a result of the project, and 

14 a plan to collect and disseminate envi15 ronmental data, related to the project 

16 to be funded under the grant, over the 

17 life of the project; 

18 (IV) a description of how the 

19 project will be sustainable without Fed20 eral assistance after the completion of 

21 the term of the grant; 

22 (V) a complete description of the 

23 costs of the project, including acquisi24 tion, construction, operation, and 
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1 maintenance costs over the expected life 

2 of the project; 

3 (VI) a description of which costs 

4 of the project will be supported by Fed5 eral assistance under this part; and 

6 (VII) documentation to the satis7 faction of the Secretary that diesel fuel 

8 containing sulfur at not more than 15 

9 parts per million is available for car10 rying out the project, and a commit11 ment by the applicant to use such fuel 

12 in carrying out the project. 

13 (2) PARTNERS.—An applicant under paragraph 

14 (1) may carry out a project under the pilot program 

15 in partnership with public and private entities. 

16 (d) SELECTION CRITERIA.—In evaluating applica17 tions under the pilot program, the Secretary shall— 

18 (1) consider each applicant’s previous experience 

19 with similar projects; and 

20 (2) give priority consideration to applications 

21 that— 

22 (A) are most likely to maximize protection 

23 of the environment; 

24 (B) demonstrate the greatest commitment 

25 on the part of the applicant to ensure funding 
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1 for the proposed project and the greatest likeli2 hood that the project will be maintained or ex3 panded after Federal assistance under this part 

4 is completed; and 

5 (C) exceed the minimum requirements of 

6 subsection (c)(1)(B)(ii). 

7 (e) PILOT PROJECT REQUIREMENTS.— 

8 (1) MAXIMUM AMOUNT.—The Secretary shall not 

9 provide more than $20,000,000 in Federal assistance 

10 under the pilot program to any applicant. 

11 (2) COST SHARING.—The Secretary shall not 

12 provide more than 50 percent of the cost, incurred 

13 during the period of the grant, of any project under 

14 the pilot program. 

15 (3) MAXIMUM PERIOD OF GRANTS.—The Sec16 retary shall not fund any applicant under the pilot 

17 program for more than 5 years. 

18 (4) DEPLOYMENT AND DISTRIBUTION.—The Sec19 retary shall seek to the maximum extent practicable 

20 to ensure a broad geographic distribution of project 

21 sites. 

22 (5) TRANSFER OF INFORMATION AND KNOWL23 EDGE.—The Secretary shall establish mechanisms to 

24 ensure that the information and knowledge gained by 

25 participants in the pilot program are transferred 
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1 among the pilot program participants and to other 

2 interested parties, including other applicants that 

3 submitted applications. 

4 (f) SCHEDULE.— 

5 (1) PUBLICATION.—Not later than 90 days after 

6 the date of enactment of this Act, the Secretary shall 

7 publish in the Federal Register, Commerce Business 

8 Daily, and elsewhere as appropriate, a request for ap9 plications to undertake projects under the pilot pro10 gram. Applications shall be due not later than 180 

11 days after the date of publication of the notice. 

12 (2) SELECTION.—Not later than 180 days after 

13 the date by which applications for grants are due, the 

14 Secretary shall select by competitive, peer reviewed 

15 proposal, all applications for projects to be awarded 

16 a grant under the pilot program. 

17 (g) LIMIT ON FUNDING.—The Secretary shall provide 

18 not less than 20 nor more than 25 percent of the grant fund19 ing made available under this section for the acquisition 

20 of ultra-low sulfur diesel vehicles. 

21 § 723. Reports to Congress 

22 (a) INITIAL REPORT.—Not later than 60 days after the 

23 date on which grants are awarded under this part, the Sec24 retary shall submit to Congress a report containing— 
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1 (1) an identification of the grant recipients and 

2 a description of the projects to be funded; 

3 (2) an identification of other applicants that 

4 submitted applications for the pilot program; and 

5 (3) a description of the mechanisms used by the 

6 Secretary to ensure that the information and knowl7 edge gained by participants in the pilot program are 

8 transferred among the pilot program participants 

9 and to other interested parties, including other appli10 cants that submitted applications. 

11 (b) EVALUATION.—Not later than 3 years after the 

12 date of enactment of this Act, and annually thereafter until 

13 the pilot program ends, the Secretary shall submit to Con14 gress a report containing an evaluation of the effectiveness 

15 of the pilot program, including— 

16 (1) an assessment of the benefits to the environ17 ment derived from the projects included in the pilot 

18 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 sulfur 

22 diesel vehicles. 
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1 § 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 avail4 able until expended. 

5 PART 3—FUEL CELL BUSES 

6 § 731. Fuel cell transit bus demonstration 

7 (a) IN GENERAL.—The Secretary of Energy, in con8 sultation with the Secretary of Transportation, shall estab9 lish a transit bus demonstration program to make competi10 tive, merit-based awards for 5-year projects to demonstrate 

11 not more than 25 fuel cell transit buses (and necessary in12 frastructure) in 5 geographically dispersed localities. 

13 (b) PREFERENCE.—In selecting projects under this sec14 tion, the Secretary of Energy shall give preference to 

15 projects that are most likely to mitigate congestion and im16 prove air quality. 

17 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

18 authorized to be appropriated to the Secretary of Energy 

19 to carry out this section $10,000,000 for each of fiscal years 

20 2006 through 2010. 

21 Subtitle C—Clean School Buses 

22 § 741. Definitions 

23 In this subtitle: 

24 (1) ADMINISTRATOR.—The term ‘‘Adminis25 trator’’ means the Administrator of the Environ26 mental Protection Agency. 
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1 (2) ALTERNATIVE FUEL.—The term ‘‘alternative 

2 fuel’’ means liquefied natural gas, compressed natural 

3 gas, liquefied petroleum gas, hydrogen, propane, or 

4 methanol or ethanol at no less than 85 percent by vol5 ume. 

6 (3) ALTERNATIVE FUEL SCHOOL BUS.—The term 

7 ‘‘alternative fuel school bus’’ means a school bus that 

8 meets all of the requirements of this subtitle and is 

9 operated solely on an alternative fuel. 

10 (4) EMISSIONS CONTROL RETROFIT TECH11 NOLOGY.—The term ‘‘emissions control retrofit tech12 nology’’ means a particulate filter or other emissions 

13 control equipment that is verified or certified by the 

14 Administrator or the California Air Resources Board 

15 as an effective emission reduction technology when in16 stalled on an existing school bus. 

17 (5) IDLING.—The term ‘‘idling’’ means operating 

18 an engine while remaining stationary for more than 

19 approximately 15 minutes, except that the term does 

20 not apply to routine stoppages associated with traffic 

21 movement or congestion. 

22 (6) SECRETARY.—The term ‘‘Secretary’’ means 

23 the Secretary of Energy. 

24 (7) ULTRA-LOW SULFUR DIESEL FUEL.—The 

25 term ‘‘ultra-low sulfur diesel fuel’’ means diesel fuel 
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1 that contains sulfur at not more than 15 parts per 

2 million. 

3 (8) ULTRA-LOW SULFUR DIESEL FUEL SCHOOL

4 BUS.—The term ‘‘ultra-low sulfur diesel fuel school 

5 bus’’ means a school bus that meets all of the require6 ments of this subtitle and is operated solely on ultra7 low sulfur diesel fuel. 

8 § 742. Program for replacement of certain school 

9 buses with clean school buses 

10 (a) ESTABLISHMENT.—The Administrator, in con11 sultation with the Secretary and other appropriate Federal 

12 departments and agencies, shall establish a program for 

13 awarding grants on a competitive basis to eligible entities 

14 for the replacement of existing school buses manufactured 

15 before model year 1991 with alternative fuel school buses 

16 and ultra-low sulfur diesel fuel school buses. 

17 (b) REQUIREMENTS.— 

18 (1) IN GENERAL.—Not later than 90 days after 

19 the date of enactment of this Act, the Administrator 

20 shall establish and publish in the Federal Register 

21 grant requirements on eligibility for assistance, and 

22 on implementation of the program established under 

23 subsection (a), including instructions for the submis24 sion of grant applications and certification require25 ments to ensure compliance with this subtitle. 
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1 (2) APPLICATION DEADLINES.—The requirements 

2 established under paragraph (1) shall require submis3 sion of grant applications not later than— 

4 (A) in the case of the first year of program 

5 implementation, the date that is 180 days after 

6 the publication of the requirements in the Fed7 eral Register; and 

8 (B) in the case of each subsequent year, 

9 June 1 of the year. 

10 (c) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

11 under this section only— 

12 (1) to 1 or more local or State governmental en13 tities responsible for providing school bus service to 1 

14 or more public school systems or responsible for the 

15 purchase of school buses; 

16 (2) to 1 or more contracting entities that provide 

17 school bus service to 1 or more public school systems, 

18 if the grant application is submitted jointly with the 

19 1 or more school systems to be served by the buses, ex20 cept that the application may provide that buses pur21 chased using funds awarded shall be owned, operated, 

22 and maintained exclusively by the 1 or more con23 tracting entities; or 

24 (3) to a nonprofit school transportation associa25 tion representing private contracting entities, if the 
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1 association has notified and received approval from 

2 the 1 or more school systems to be served by the buses. 

3 (d) AWARD DEADLINES.— 

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

5 Administrator shall award a grant made to a quali6 fied applicant for a fiscal year— 

7 (A) in the case of the first fiscal year of pro8 gram implementation, not later than the date 

9 that is 90 days after the application deadline es10 tablished under subsection (b)(2); and 

11 (B) in the case of each subsequent fiscal 

12 year, not later than August 1 of the fiscal year. 

13 (2) INSUFFICIENT NUMBER OF QUALIFIED GRANT

14 APPLICATIONS.—If the Administrator does not receive 

15 a sufficient number of qualified grant applications to 

16 meet the requirements of subsection (i)(1) for a fiscal 

17 year, the Administrator shall award a grant made to 

18 a qualified applicant under subsection (i)(2) not later 

19 than September 30 of the fiscal year. 

20 (e) TYPES OF GRANTS.— 

21 (1) IN GENERAL.—A grant under this section 

22 shall be used for the replacement of school buses man23 ufactured before model year 1991 with alternative fuel 

24 school buses and ultra-low sulfur diesel fuel school 

25 buses. 
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1 (2) NO ECONOMIC BENEFIT.—Other than the re2 ceipt of the grant, a recipient of a grant under this 

3 section may not receive any economic benefit in con4 nection with the receipt of the grant. 

5 (3) PRIORITY OF GRANT APPLICATIONS.—The 

6 Administrator shall give priority to applicants that 

7 propose to replace school buses manufactured before 

8 model year 1977. 

9 (f) CONDITIONS OF GRANT.—A grant provided under 

10 this section shall include the following conditions: 

11 (1) SCHOOL BUS FLEET.—All buses acquired 

12 with funds provided under the grant shall be operated 

13 as part of the school bus fleet for which the grant was 

14 made for a minimum of 5 years. 

15 (2) USE OF FUNDS.—Funds provided under the 

16 grant may only be used— 

17 (A) to pay the cost, except as provided in 

18 paragraph (3), of new alternative fuel school 

19 buses or ultra-low sulfur diesel fuel school buses, 

20 including State taxes and contract fees associ21 ated with the acquisition of such buses; and 

22 (B) to provide— 

23 (i) up to 20 percent of the price of the 

24 alternative fuel school buses acquired, for 

25 necessary alternative fuel infrastructure if 
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1 the infrastructure will only be available to 

2 the grant recipient; and 

3 (ii) up to 25 percent of the price of the 

4 alternative fuel school buses acquired, for 

5 necessary alternative fuel infrastructure if 

6 the infrastructure will be available to the 

7 grant recipient and to other bus fleets. 

8 (3) GRANT RECIPIENT FUNDS.—The grant re9 cipient shall be required to provide at least— 

10 (A) in the case of a grant recipient de11 scribed in paragraph (1) or (3) of subsection (c), 

12 the lesser of— 

13 (i) an amount equal to 15 percent of 

14 the total cost of each bus received; or 

15 (ii) $15,000 per bus; and 

16 (B) in the case of a grant recipient de17 scribed in subsection (c)(2), the lesser of— 

18 (i) an amount equal to 20 percent of 

19 the total cost of each bus received; or 

20 (ii) $20,000 per bus. 

21 (4) ULTRA-LOW SULFUR DIESEL FUEL.—In the 

22 case of a grant recipient receiving a grant for ultra23 low sulfur diesel fuel school buses, the grant recipient 

24 shall be required to provide documentation to the sat25 isfaction of the Administrator that diesel fuel con-
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1 taining sulfur at not more than 15 parts per million 

2 is available for carrying out the purposes of the 

3 grant, and a commitment by the applicant to use 

4 such fuel in carrying out the purposes of the grant. 

5 (5) TIMING.—All alternative fuel school buses, 

6 ultra-low sulfur diesel fuel school buses, or alternative 

7 fuel infrastructure acquired under a grant awarded 

8 under this section shall be purchased and placed in 

9 service as soon as practicable. 

10 (g) BUSES.— 

11 (1) IN GENERAL.—Except as provided in para12 graph (2), funding under a grant made under this 

13 section for the acquisition of new alternative fuel 

14 school buses or ultra-low sulfur diesel fuel school buses 

15 shall only be used to acquire school buses— 

16 (A) with a gross vehicle weight of greater 

17 than 14,000 pounds; 

18 (B) that are powered by a heavy duty en19 gine; 

20 (C) in the case of alternative fuel school 

21 buses manufactured in model years 2004 through 

22 2006, that emit not more than 1.8 grams per 

23 brake horsepower-hour of nonmethane hydro24 carbons and oxides of nitrogen and .01 grams 
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1 per brake horsepower-hour of particulate matter; 

2 and 

3 (D) in the case of ultra-low sulfur diesel 

4 fuel school buses manufactured in model years 

5 2004 through 2006, that emit not more than 2.5 

6 grams per brake horsepower-hour of nonmethane 

7 hydrocarbons and oxides of nitrogen and .01 

8 grams per brake horsepower-hour of particulate 

9 matter. 

10 (2) LIMITATIONS.—A bus shall not be acquired 

11 under this section that emits nonmethane hydro12 carbons, oxides of nitrogen, or particulate matter at 

13 a rate greater than the best performing technology of 

14 the same class of ultra-low sulfur diesel fuel school 

15 buses commercially available at the time the grant is 

16 made. 

17 (h) DEPLOYMENT AND DISTRIBUTION.—The Adminis18 trator shall— 

19 (1) seek, to the maximum extent practicable, to 

20 achieve nationwide deployment of alternative fuel 

21 school buses and ultra-low sulfur diesel fuel school 

22 buses through the program under this section; and 

23 (2) ensure a broad geographic distribution of 

24 grant awards, with a goal of no State receiving more 
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1 than 10 percent of the grant funding made available 

2 under this section for a fiscal year. 

3 (i) ALLOCATION OF FUNDS.— 

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

5 the amount of grant funding made available to carry 

6 out this section for any fiscal year, the Administrator 

7 shall use— 

8 (A) 70 percent for the acquisition of alter9 native fuel school buses or supporting infrastruc10 ture; and 

11 (B) 30 percent for the acquisition of ultra12 low sulfur diesel fuel school buses. 

13 (2) INSUFFICIENT NUMBER OF QUALIFIED GRANT

14 APPLICATIONS.—After the first fiscal year in which 

15 this program is in effect, if the Administrator does 

16 not receive a sufficient number of qualified grant ap17 plications to meet the requirements of subparagraph 

18 (A) or (B) of paragraph (1) for a fiscal year, effective 

19 beginning on August 1 of the fiscal year, the Admin20 istrator shall make the remaining funds available to 

21 other qualified grant applicants under this section. 

22 (j) REDUCTION OF SCHOOL BUS IDLING.—Each local 

23 educational agency (as defined in section 9101 of the Ele24 mentary and Secondary Education Act of 1965 (20 U.S.C. 

25 7801)) that receives Federal funds under the Elementary 
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1 and Secondary Education Act of 1965 (20 U.S.C. 6301 et 

2 seq.) is encouraged to develop a policy, consistent with the 

3 health, safety, and welfare of students and the proper oper4 ation and maintenance of school buses, to reduce the inci5 dence of unnecessary school bus idling at schools when pick6 ing up and unloading students. 

7 (k) ANNUAL REPORT.— 

8 (1) IN GENERAL.—Not later than January 31 of 

9 each year, the Administrator shall transmit to Con10 gress a report evaluating implementation of the pro11 grams under this section and section 743. 

12 (2) COMPONENTS.—The reports shall include a 

13 description of— 

14 (A) the total number of grant applications 

15 received; 

16 (B) the number and types of alternative fuel 

17 school buses, ultra-low sulfur diesel fuel school 

18 buses, and retrofitted buses requested in grant 

19 applications; 

20 (C) grants awarded and the criteria used to 

21 select the grant recipients; 

22 (D) certified engine emission levels of all 

23 buses purchased or retrofitted under the pro24 grams under this section and section 743; 
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1 (E) an evaluation of the in-use emission 

2 level of buses purchased or retrofitted under the 

3 programs under this section and section 743; 

4 and 

5 (F) any other information the Adminis6 trator considers appropriate. 

7 (l) AUTHORIZATION OF APPROPRIATIONS.—There are 

8 authorized to be appropriated to the Administrator to carry 

9 out this section, to remain available until expended— 

10 (1) $45,000,000 for fiscal year 2005; 

11 (2) $65,000,000 for fiscal year 2006; 

12 (3) $90,000,000 for fiscal year 2007; and 

13 (4) such sums as are necessary for each of fiscal 

14 years 2008 and 2009. 

15 § 743. Diesel retrofit program 

16 (a) ESTABLISHMENT.—The Administrator, in con17 sultation with the Secretary, shall establish a program for 

18 awarding grants on a competitive basis to entities for the 

19 installation of retrofit technologies for diesel school buses. 

20 (b) ELIGIBLE RECIPIENTS.—A grant shall be awarded 

21 under this section only— 

22 (1) to a local or State governmental entity re23 sponsible for providing school bus service to 1 or more 

24 public school systems; 
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1 (2) to 1 or more contracting entities that provide 

2 school bus service to 1 or more public school systems, 

3 if the grant application is submitted jointly with the 

4 1 or more school systems that the buses will serve, ex5 cept that the application may provide that buses pur6 chased using funds awarded shall be owned, operated, 

7 and maintained exclusively by the 1 or more con8 tracting entities; or 

9 (3) to a nonprofit school transportation associa10 tion representing private contracting entities, if the 

11 association has notified and received approval from 

12 the 1 or more school systems to be served by the buses. 

13 (c) AWARDS.— 

14 (1) IN GENERAL.—The Administrator shall seek, 

15 to the maximum extent practicable, to ensure a broad 

16 geographic distribution of grants under this section. 

17 (2) PREFERENCES.—In making awards of 

18 grants under this section, the Administrator shall give 

19 preference to proposals that— 

20 (A) will achieve the greatest reductions in 

21 emissions of nonmethane hydrocarbons, oxides of 

22 nitrogen, or particulate matter per proposal or 

23 per bus; or 
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1 (B) involve the use of emissions control ret2 rofit technology on diesel school buses that oper3 ate solely on ultra-low sulfur diesel fuel. 

4 (d) CONDITIONS OF GRANT.—A grant shall be pro5 vided under this section on the conditions that— 

6 (1) buses on which retrofit emissions-control 

7 technology are to be demonstrated— 

8 (A) will operate on ultra-low sulfur diesel 

9 fuel where such fuel is reasonably available or re10 quired for sale by State or local law or regula11 tion; 

12 (B) were manufactured in model year 1991 

13 or later; and 

14 (C) will be used for the transportation of 

15 school children to and from school for a min16 imum of 5 years; 

17 (2) grant funds will be used for the purchase of 

18 emission control retrofit technology, including State 

19 taxes and contract fees; and 

20 (3) grant recipients will provide at least 15 per21 cent of the total cost of the retrofit, including the pur22 chase of emission control retrofit technology and all 

23 necessary labor for installation of the retrofit. 
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1 (e) VERIFICATION.—Not later than 90 days after the 

2 date of enactment of this Act, the Administrator shall pub3 lish in the Federal Register procedures to verify— 

4 (1) the retrofit emissions-control technology to be 

5 demonstrated; 

6 (2) that buses powered by ultra-low sulfur diesel 

7 fuel on which retrofit emissions-control technology are 

8 to be demonstrated will operate on diesel fuel con9 taining not more than 15 parts per million of sulfur; 

10 and 

11 (3) that grants are administered in accordance 

12 with this section. 

13 (f) AUTHORIZATION OF APPROPRIATIONS.—There are 

14 authorized to be appropriated to the Administrator to carry 

15 out this section, to remain available until expended— 

16 (1) $20,000,000 for fiscal year 2005; 

17 (2) $35,000,000 for fiscal year 2006; 

18 (3) $45,000,000 for fiscal year 2007; and 

19 (4) such sums as are necessary for each of fiscal 

20 years 2008 and 2009. 

21 § 744. Fuel cell school buses 

22 (a) ESTABLISHMENT.—The Secretary shall establish a 

23 program for entering into cooperative agreements— 

24 (1) with private sector fuel cell bus developers for 

25 the development of fuel cell-powered school buses; and 
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1 (2) subsequently, with not less than 2 units of 

2 local government using natural gas-powered school 

3 buses and such private sector fuel cell bus developers 

4 to demonstrate the use of fuel cell-powered school 

5 buses. 

6 (b) COST SHARING.—The non-Federal contribution for 

7 activities funded under this section shall be not less than— 

8 (1) 20 percent for fuel infrastructure develop9 ment activities; and 

10 (2) 50 percent for demonstration activities and 

11 for development activities not described in paragraph 

12 (1). 

13 (c) REPORTS TO CONGRESS.—Not later than 3 years 

14 after the date of enactment of this Act, the Secretary shall 

15 transmit to Congress a report that— 

16 (1) evaluates the process of converting natural 

17 gas infrastructure to accommodate fuel cell-powered 

18 school buses; and 

19 (2) assesses the results of the development and 

20 demonstration program under this section. 

21 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary to carry out 

23 this section $25,000,000 for the period of fiscal years 2005 

24 through 2007. 
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1 Subtitle D—Miscellaneous 

2 § 751. Railroad efficiency 

3 (a) ESTABLISHMENT.—The Secretary of Energy shall, 

4 in cooperation with the Secretary of Transportation and 

5 the Administrator of the Environmental Protection Agency, 

6 establish a cost-shared, public-private research partnership 

7 involving the Federal Government, railroad carriers, loco8 motive manufacturers and equipment suppliers, and the As9 sociation of American Railroads, to develop and dem10 onstrate railroad locomotive technologies that increase fuel 

11 economy, reduce emissions, and lower costs of operation. 

12 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

13 authorized to be appropriated to the Secretary of Energy 

14 to carry out this section— 

15 (1) $25,000,000 for fiscal year 2006; 

16 (2) $35,000,000 for fiscal year 2007; and 

17 (3) $50,000,000 for fiscal year 2008. 

18 § 752. Mobile emission reductions trading and cred19 iting 

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

21 date of enactment of this Act, the Administrator of the En22 vironmental Protection Agency shall submit to Congress a 

23 report on the experience of the Administrator with the trad24 ing of mobile source emission reduction credits for use by 

25 owners and operators of stationary source emission sources 
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1 to meet emission offset requirements within a nonattain2 ment area. 

3 (b) CONTENTS.—The report shall describe— 

4 (1) projects approved by the Administrator that 

5 include the trading of mobile source emission reduc6 tion credits for use by stationary sources in com7 plying with offset requirements, including a descrip8 tion of— 

9 (A) project and stationary sources location; 

10 (B) volumes of emissions offset and traded; 

11 (C) the sources of mobile emission reduction 

12 credits; and 

13 (D) if available, the cost of the credits; 

14 (2) the significant issues identified by the Ad15 ministrator in consideration and approval of trading 

16 in the projects; 

17 (3) the requirements for monitoring and assess18 ing the air quality benefits of any approved project; 

19 (4) the statutory authority on which the Admin20 istrator has based approval of the projects; 

21 (5) an evaluation of how the resolution of issues 

22 in approved projects could be used in other projects; 

23 and 

24 (6) any other issues that the Administrator con25 siders relevant to the trading and generation of mo-
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1 bile source emission reduction credits for use by sta2 tionary sources or for other purposes. 

3 § 753. Aviation fuel conservation and emissions 

4 (a) IN GENERAL.—Not later than 60 days after the 

5 date of enactment of this Act, the Administrator of the Fed6 eral Aviation Administration and the Administrator of the 

7 Environmental Protection Agency shall jointly initiate a 

8 study to identify— 

9 (1) the impact of aircraft emissions on air qual10 ity in nonattainment areas; and 

11 (2) ways to promote fuel conservation measures 

12 for aviation to— 

13 (A) enhance fuel efficiency; and 

14 (B) reduce emissions. 

15 (b) FOCUS.—The study under subsection (a) shall focus 

16 on how air traffic management inefficiencies, such as air17 craft idling at airports, result in unnecessary fuel burn and 

18 air emissions. 

19 (c) REPORT.—Not later than 1 year after the date of 

20 the initiation of the study under subsection (a), the Admin21 istrator of the Federal Aviation Administration and the Ad22 ministrator of the Environmental Protection Agency shall 

23 jointly submit to the Committee on Energy and Commerce 

24 and the Committee on Transportation and Infrastructure 

25 of the House of Representatives and the Committee on Envi-
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1 ronment and Public Works and the Committee on Com2 merce, Science, and Transportation of the Senate a report 

3 that— 

4 (1) describes the results of the study; and 

5 (2) includes any recommendations on ways in 

6 which unnecessary fuel use and emissions affecting 

7 air quality may be reduced— 

8 (A) without adversely affecting safety and 

9 security and increasing individual aircraft 

10 noise; and 

11 (B) while taking into account all aircraft 

12 emissions and the impact of the emissions on 

13 human health. 

14 § 754. Diesel fueled vehicles 

15 (a) DEFINITION OF TIER 2 EMISSION STANDARDS.— 

16 In this section, the term ‘‘tier 2 emission standards’’ means 

17 the motor vehicle emission standards that apply to pas18 senger cars, light trucks, and larger passenger vehicles man19 ufactured after the 2003 model year, as issued on February 

20 10, 2000, by the Administrator of the Environmental Pro21 tection Agency under sections 202 and 211 of the Clean Air 

22 Act (42 U.S.C. 7521, 7545). 

23 (b) DIESEL COMBUSTION AND AFTER-TREATMENT

24 TECHNOLOGIES.—The Secretary of Energy shall accelerate 
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1 efforts to improve diesel combustion and after-treatment 

2 technologies for use in diesel fueled motor vehicles. 

3 (c) GOALS.—The Secretary shall carry out subsection 

4 (b) with a view toward achieving the following goals: 

5 (1) Developing and demonstrating diesel tech6 nologies that, not later than 2010, meet the following 

7 standards: 

8 (A) Tier 2 emission standards. 

9 (B) The heavy-duty emissions standards of 

10 2007 that are applicable to heavy-duty vehicles 

11 under regulations issued by the Administrator of 

12 the Environmental Protection Agency as of the 

13 date of enactment of this Act. 

14 (2) Developing the next generation of low-emis15 sion, high efficiency diesel engine technologies, includ16 ing homogeneous charge compression ignition tech17 nology. 

18 § 757. Biodiesel engine testing program 

19 (a) IN GENERAL.—Not later that 180 days after the 

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

21 a partnership with diesel engine, diesel fuel injection sys22 tem, and diesel vehicle manufacturers and diesel and bio23 diesel fuel providers, to include biodiesel testing in ad24 vanced diesel engine and fuel system technology. 
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1 (b) SCOPE.—The program shall provide for testing to 

2 determine the impact of biodiesel from different sources on 

3 current and future emission control technologies, with em4 phasis on— 

5 (1) the impact of biodiesel on emissions war6 ranty, in-use liability, and antitampering provisions; 

7 (2) the impact of long-term use of biodiesel on 

8 engine operations; 

9 (3) the options for optimizing these technologies 

10 for both emissions and performance when switching 

11 between biodiesel and diesel fuel; and 

12 (4) the impact of using biodiesel in these fueling 

13 systems and engines when used as a blend with 2006 

14 Environmental Protection Agency-mandated diesel 

15 fuel containing a maximum of 15-parts-per-million 

16 sulfur content. 

17 (c) REPORT.—Not later than 2 years after the date of 

18 enactment of this Act, the Secretary shall provide an in19 terim report to Congress on the findings of the program, 

20 including a comprehensive analysis of impacts from bio21 diesel on engine operation for both existing and expected 

22 future diesel technologies, and recommendations for ensur23 ing optimal emissions reductions and engine performance 

24 with biodiesel. 
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1 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated $5,000,000 for each of fiscal 

3 years 2006 through 2010 to carry out this section. 

4 (e) DEFINITION.—For purposes of this section, the 

5 term ‘‘biodiesel’’ means a diesel fuel substitute produced 

6 from nonpetroleum renewable resources that meets the reg7 istration requirements for fuels and fuel additives estab8 lished by the Environmental Protection Agency under sec9 tion 211 of the Clean Air Act (42 U.S.C. 7545) and that 

10 meets the American Society for Testing and Materials 

11 D6751–02a Standard Specification for Biodiesel Fuel 

12 (B100) Blend Stock for Distillate Fuels. 

13 § 759. Ultra-efficient engine technology for aircraft 

14 (a) ULTRA-EFFICIENT ENGINE TECHNOLOGY PART15 NERSHIP.—The Secretary of Energy shall enter into a coop16 erative agreement with the National Aeronautics and Space 

17 Administration for the development of ultra-efficient engine 

18 technology for aircraft. 

19 (b) PERFORMANCE OBJECTIVE.—The Secretary of En20 ergy shall establish the following performance objectives for 

21 the program set forth in subsection (a): 

22 (1) A fuel efficiency increase of 10 percent. 

23 (2) A reduction in the impact of landing and 

24 takeoff nitrogen oxides emissions on local air quality 

25 of 70 percent. 
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1 (c) AUTHORIZATION OF APPROPRIATIONS .—There are 

2 authorized to be appropriated to the Secretary of Energy 

3 for carrying out this section $45,000,000 for each of the fis4 cal years 2006, 2007, 2008, 2009, and 2010. 

5 Subtitle E—Automobile Efficiency 

6 § 771. Authorization of appropriations for implemen7 tation and enforcement of fuel economy 

8 standards 

9 In addition to any other funds authorized by law, 

10 there are authorized to be appropriated to the National 

11 Highway Traffic Safety Administration to carry out its ob12 ligations with respect to average fuel economy standards 

13 $2,000,000 for each of fiscal years 2006 through 2010. 

14 § 772. Revised considerations for decisions on max15 imum feasible average fuel economy 

16 Section 32902(f) of title 49, United States Code, is 

17 amended to read as follows: 

18 ‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM

19 FEASIBLE AVERAGE FUEL ECONOMY.—When deciding 

20 maximum feasible average fuel economy under this section, 

21 the Secretary of Transportation shall consider the following 

22 matters: 

23 ‘‘(1) Technological feasibility. 

24 ‘‘(2) Economic practicability. 
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1 ‘‘(3) The effect of other motor vehicle standards 

2 of the Government on fuel economy. 

3 ‘‘(4) The need of the United States to conserve 

4 energy. 

5 ‘‘(5) The effects of fuel economy standards on 

6 passenger automobiles, nonpassenger automobiles, and 

7 occupant safety. 

8 ‘‘(6) The effects of compliance with average fuel 

9 economy standards on levels of automobile industry 

10 employment in the United States.’’. 

11 § 773. Extension of maximum fuel economy increase 

12 for alternative fueled vehicles 

13 (a) MANUFACTURING INCENTIVES.—Section 32905 of 

14 title 49, United States Code, is amended— 

15 (1) in each of subsections (b) and (d), by striking 

16 ‘‘1993–2004’’ and inserting ‘‘1993–2010’’; 

17 (2) in subsection (f), by striking ‘‘2001’’ and in18 serting ‘‘2007’’; and 

19 (3) in subsection (f)(1), by striking ‘‘2004’’ and 

20 inserting ‘‘2010’’. 

21 (b) MAXIMUM FUEL ECONOMY INCREASE.—Subsection 

22 (a)(1) of section 32906 of title 49, United States Code, is 

23 amended— 
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1 (1) in subparagraph (A), by striking ‘‘the model 

2 years 1993–2004’’ and inserting ‘‘model years 1993– 

3 2010’’; and 

4 (2) in subparagraph (B), by striking ‘‘the model 

5 years 2005–2008’’ and inserting ‘‘model years 2011– 

6 2014’’. 

7 § 774. Study of feasibility and effects of reducing use 

8 of fuel for automobiles 

9 (a) IN GENERAL.—Not later than 30 days after the 

10 date of the enactment of this Act, the Administrator of the 

11 National Highway Traffic Safety Administration shall ini12 tiate a study of the feasibility and effects of reducing by 

13 model year 2014, by a significant percentage, the amount 

14 of fuel consumed by automobiles. 

15 (b) SUBJECTS OF STUDY.—The study under this sec16 tion shall include— 

17 (1) examination of, and recommendation of al18 ternatives to, the policy under current Federal law of 

19 establishing average fuel economy standards for auto20 mobiles and requiring each automobile manufacturer 

21 to comply with average fuel economy standards that 

22 apply to the automobiles it manufactures; 

23 (2) examination of how automobile manufactur24 ers could contribute toward achieving the reduction 

25 referred to in subsection (a); 
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1 (3) examination of the potential of fuel cell tech2 nology in motor vehicles in order to determine the ex3 tent to which such technology may contribute to 

4 achieving the reduction referred to in subsection (a); 

5 and 

6 (4) examination of the effects of the reduction re7 ferred to in subsection (a) on— 

8 (A) gasoline supplies; 

9 (B) the automobile industry, including sales 

10 of automobiles manufactured in the United 

11 States; 

12 (C) motor vehicle safety; and 

13 (D) air quality. 

14 (c) REPORT.—The Administrator shall submit to Con15 gress a report on the findings, conclusion, and recommenda16 tions of the study under this section by not later than 1 

17 year after the date of the enactment of this Act. 

18 TITLE VIII—HYDROGEN 

19 § 801. Definitions 

20 In this title: 

21 (1) ADVISORY COMMITTEE.—The term ‘‘Advisory 

22 Committee’’ means the Hydrogen Technical and Fuel 

23 Cell Advisory Committee established under section 

24 805. 
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1 (2) DEPARTMENT.—The term ‘‘Department’’ 

2 means the Department of Energy. 

3 (3) FUEL CELL.—The term ‘‘fuel cell’’ means a 

4 device that directly converts the chemical energy of a 

5 fuel and an oxidant into electricity by an electro6 chemical process taking place at separate electrodes in 

7 the device. 

8 (4) INFRASTRUCTURE.—The term ‘‘infrastruc9 ture’’ means the equipment, systems, or facilities used 

10 to produce, distribute, deliver, or store hydrogen. 

11 (5) LIGHT DUTY VEHICLE.—The term ‘‘light 

12 duty vehicle’’ means a car or truck classified by the 

13 Department of Transportation as a Class I or IIA ve14 hicle. 

15 (6) SECRETARY.—The term ‘‘Secretary’’ means 

16 the Secretary of Energy. 

17 § 802. Plan 

18 Not later than 6 months after the date of enactment 

19 of this Act, the Secretary shall transmit to Congress a co20 ordinated plan for the programs described in this title and 

21 any other programs of the Department that are directly re22 lated to fuel cells or hydrogen. The plan shall describe, at 

23 a minimum— 
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1 (1) the agenda for the next 5 years for the pro2 grams authorized under this title, including the agen3 da for each activity enumerated in section 803(a); 

4 (2) the types of entities that will carry out the 

5 activities under this title and what role each entity 

6 is expected to play; 

7 (3) the milestones that will be used to evaluate 

8 the programs for the next 5 years; 

9 (4) the most significant technical and nontech10 nical hurdles that stand in the way of achieving the 

11 goals described in section 803(b), and how the pro12 grams will address those hurdles; and 

13 (5) the policy assumptions that are implicit in 

14 the plan, including any assumptions that would affect 

15 the sources of hydrogen or the marketability of hydro16 gen-related products. 

17 § 803. Programs 

18 (a) ACTIVITIES.—The Secretary, in partnership with 

19 the private sector, shall conduct programs to address— 

20 (1) production of hydrogen from diverse energy 

21 sources, including— 

22 (A) fossil fuels, which may include carbon 

23 capture and sequestration; 

24 (B) hydrogen-carrier fuels (including eth25 anol and methanol); 
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1 (C) renewable energy resources, including 

2 biomass; and 

3 (D) nuclear energy; 

4 (2) use of hydrogen for commercial, industrial, 

5 and residential electric power generation; 

6 (3) safe delivery of hydrogen or hydrogen-carrier 

7 fuels, including— 

8 (A) transmission by pipeline and other dis9 tribution methods; and 

10 (B) convenient and economic refueling of 

11 vehicles either at central refueling stations or 

12 through distributed on-site generation; 

13 (4) advanced vehicle technologies, including— 

14 (A) engine and emission control systems; 

15 (B) energy storage, electric propulsion, and 

16 hybrid systems; 

17 (C) automotive materials; and 

18 (D) other advanced vehicle technologies; 

19 (5) storage of hydrogen or hydrogen-carrier fuels, 

20 including development of materials for safe and eco21 nomic storage in gaseous, liquid, or solid form at re22 fueling facilities and onboard vehicles; 

23 (6) development of safe, durable, affordable, and 

24 efficient fuel cells, including fuel-flexible fuel cell 

25 power systems, improved manufacturing processes, 
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1 high-temperature membranes, cost-effective fuel proc2 essing for natural gas, fuel cell stack and system reli3 ability, low temperature operation, and cold start ca4 pability; 

5 (7) development, after consultation with the pri6 vate sector, of necessary codes and standards (includ7 ing international codes and standards and voluntary 

8 consensus standards adopted in accordance with OMB 

9 Circular A–119) and safety practices for the produc10 tion, distribution, storage, and use of hydrogen, hy11 drogen-carrier fuels, and related products; 

12 (8) a public education program to develop im13 proved knowledge and acceptability of hydrogen-based 

14 systems; and 

15 (9) the ability of domestic automobile manufac16 turers to manufacture commercially available com17 petitive hybrid vehicle technologies in the United 

18 States. 

19 (b) PROGRAM GOALS.— 

20 (1) VEHICLES.—For vehicles, the goals of the 

21 program are— 

22 (A) to enable a commitment by automakers 

23 no later than year 2015 to offer safe, affordable, 

24 and technically viable hydrogen fuel cell vehicles 

25 in the mass consumer market; and 
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1 (B) to enable production, delivery, and ac2 ceptance by consumers of model year 2020 hy3 drogen fuel cell and other hydrogen-powered ve4 hicles that will have— 

5 (i) a range of at least 300 miles; 

6 (ii) improved performance and ease of 

7 driving; 

8 (iii) safety and performance com9 parable to vehicle technologies in the mar10 ket; and 

11 (iv) when compared to light duty vehi12 cles in model year 2003— 

13 (I) fuel economy that is substan14 tially higher; 

15 (II) substantially lower emissions 

16 of air pollutants; and 

17 (III) equivalent or improved vehi18 cle fuel system crash integrity and oc19 cupant protection. 

20 (2) HYDROGEN ENERGY AND ENERGY INFRA21 STRUCTURE.—For hydrogen energy and energy infra22 structure, the goals of the program are to enable a 

23 commitment not later than 2015 that will lead to in24 frastructure by 2020 that will provide— 

25 (A) safe and convenient refueling; 
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1 (B) improved overall efficiency; 

2 (C) widespread availability of hydrogen 

3 from domestic energy sources through— 

4 (i) production, with consideration of 

5 emissions levels; 

6 (ii) delivery, including transmission 

7 by pipeline and other distribution methods 

8 for hydrogen; and 

9 (iii) storage, including storage in sur10 face transportation vehicles; 

11 (D) hydrogen for fuel cells, internal combus12 tion engines, and other energy conversion devices 

13 for portable, stationary, and transportation ap14 plications; and 

15 (E) other technologies consistent with the 

16 Department’s plan. 

17 (3) FUEL CELLS.—The goals for fuel cells and 

18 their portable, stationary, and transportation appli19 cations are to enable— 

20 (A) safe, economical, and environmentally 

21 sound hydrogen fuel cells; 

22 (B) fuel cells for light duty and other vehi23 cles; and 

24 (C) other technologies consistent with the 

25 Department’s plan. 
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1 (c) DEMONSTRATION.—In carrying out the programs 

2 under this section, the Secretary shall fund a limited num3 ber of demonstration projects, consistent with a determina4 tion of the maturity, cost-effectiveness, and environmental 

5 impacts of technologies supporting each project. In selecting 

6 projects under this subsection, the Secretary shall, to the 

7 extent practicable and in the public interest, select projects 

8 that— 

9 (1) involve using hydrogen and related products 

10 at existing facilities or installations, such as existing 

11 office buildings, military bases, vehicle fleet centers, 

12 transit bus authorities, or units of the National Park 

13 System; 

14 (2) depend on reliable power from hydrogen to 

15 carry out essential activities; 

16 (3) lead to the replication of hydrogen tech17 nologies and draw such technologies into the market18 place; 

19 (4) include vehicle, portable, and stationary 

20 demonstrations of fuel cell and hydrogen-based energy 

21 technologies; 

22 (5) address the interdependency of demand for 

23 hydrogen fuel cell applications and hydrogen fuel in24 frastructure; 
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1 (6) raise awareness of hydrogen technology 

2 among the public; 

3 (7) facilitate identification of an optimum tech4 nology among competing alternatives; 

5 (8) address distributed generation using renew6 able sources; and 

7 (9) address applications specific to rural or re8 mote locations, including isolated villages and is9 lands, the National Park System, and tribal entities. 

10 The Secretary shall give preference to projects which address 

11 multiple elements contained in paragraphs (1) through (9). 

12 (d) DEPLOYMENT.—In carrying out the programs 

13 under this section, the Secretary shall, in partnership with 

14 the private sector, conduct activities to facilitate the deploy15 ment of hydrogen energy and energy infrastructure, fuel 

16 cells, and advanced vehicle technologies. 

17 (e) FUNDING.— 

18 (1) IN GENERAL.—The Secretary shall carry out 

19 the programs under this section using a competitive, 

20 merit-based review process and consistent with the 

21 generally applicable Federal laws and regulations 

22 governing awards of financial assistance, contracts, 

23 or other agreements. 

24 (2) RESEARCH CENTERS.—Activities under this 

25 section may be carried out by funding nationally rec-
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1 ognized university-based or Federal laboratory re2 search centers. 

3 (f) COST SHARING.— 

4 (1) RESEARCH AND DEVELOPMENT.—Except as 

5 otherwise provided in this title, for research and de6 velopment programs carried out under this title the 

7 Secretary shall require a commitment from non-Fed8 eral sources of at least 20 percent of the cost of the 

9 project. The Secretary may reduce or eliminate the 

10 non-Federal requirement under this paragraph if the 

11 Secretary determines that the research and develop12 ment is of a basic or fundamental nature or involves 

13 technical analyses or educational activities. 

14 (2) DEMONSTRATION AND COMMERCIAL APPLICA15 TION.—Except as otherwise provided in this title, the 

16 Secretary shall require at least 50 percent of the costs 

17 directly and specifically related to any demonstration 

18 or commercial application project under this title to 

19 be provided from non-Federal sources. The Secretary 

20 may reduce the non-Federal requirement under this 

21 paragraph if the Secretary determines that the reduc22 tion is necessary and appropriate considering the 

23 technological risks involved in the project and is nec24 essary to meet the objectives of this title. 
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1 (3) CALCULATION OF AMOUNT.—In calculating 

2 the amount of the non-Federal commitment under 

3 paragraph (1) or (2), the Secretary may include per4 sonnel, services, equipment, and other resources. 

5 (4) SIZE OF NON-FEDERAL SHARE.—The Sec6 retary may consider the size of the non-Federal share 

7 in selecting projects. 

8 (g) DISCLOSURE.—Section 623 of the Energy Policy 

9 Act of 1992 (42 U.S.C. 13293) relating to the protection 

10 of information shall apply to projects carried out through 

11 grants, cooperative agreements, or contracts under this title. 

12 § 804. Interagency task force 

13 (a) ESTABLISHMENT.—Not later than 120 days after 

14 the date of enactment of this Act, the President shall estab15 lish an interagency task force chaired by the Secretary with 

16 representatives from each of the following: 

17 (1) The Office of Science and Technology Policy 

18 within the Executive Office of the President. 

19 (2) The Department of Transportation. 

20 (3) The Department of Defense. 

21 (4) The Department of Commerce (including the 

22 National Institute of Standards and Technology). 

23 (5) The Department of State. 

24 (6) The Environmental Protection Agency. 
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1 (7) The National Aeronautics and Space Admin2 istration. 

3 (8) Other Federal agencies as the Secretary de4 termines appropriate. 

5 (b) DUTIES.— 

6 (1) PLANNING.—The interagency task force shall 

7 work toward— 

8 (A) a safe, economical, and environmentally 

9 sound fuel infrastructure for hydrogen and hy10 drogen-carrier fuels, including an infrastructure 

11 that supports buses and other fleet transpor12 tation; 

13 (B) fuel cells in government and other ap14 plications, including portable, stationary, and 

15 transportation applications; 

16 (C) distributed power generation, including 

17 the generation of combined heat, power, and 

18 clean fuels including hydrogen; 

19 (D) uniform hydrogen codes, standards, and 

20 safety protocols; and 

21 (E) vehicle hydrogen fuel system integrity 

22 safety performance. 

23 (2) ACTIVITIES.—The interagency task force may 

24 organize workshops and conferences, may issue publi-
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1 cations, and may create databases to carry out its du2 ties. The interagency task force shall— 

3 (A) foster the exchange of generic, non4 proprietary information and technology among 

5 industry, academia, and government; 

6 (B) develop and maintain an inventory and 

7 assessment of hydrogen, fuel cells, and other ad8 vanced technologies, including the commercial 

9 capability of each technology for the economic 

10 and environmentally safe production, distribu11 tion, delivery, storage, and use of hydrogen; 

12 (C) integrate technical and other informa13 tion made available as a result of the programs 

14 and activities under this title; 

15 (D) promote the marketplace introduction of 

16 infrastructure for hydrogen fuel vehicles; and 

17 (E) conduct an education program to pro18 vide hydrogen and fuel cell information to poten19 tial end-users. 

20 (c) AGENCY COOPERATION.—The heads of all agencies, 

21 including those whose agencies are not represented on the 

22 interagency task force, shall cooperate with and furnish in23 formation to the interagency task force, the Advisory Com24 mittee, and the Department. 
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1 § 805. Advisory Committee 

2 (a) ESTABLISHMENT.—The Hydrogen Technical and 

3 Fuel Cell Advisory Committee is established to advise the 

4 Secretary on the programs and activities under this title. 

5 (b) MEMBERSHIP.— 

6 (1) MEMBERS.—The Advisory Committee shall 

7 be comprised of not fewer than 12 nor more than 25 

8 members. The members shall be appointed by the Sec9 retary to represent domestic industry, academia, pro10 fessional societies, government agencies, Federal lab11 oratories, previous advisory panels, and financial, en12 vironmental, and other appropriate organizations 

13 based on the Department’s assessment of the technical 

14 and other qualifications of committee members and 

15 the needs of the Advisory Committee. 

16 (2) TERMS.—The term of a member of the Advi17 sory Committee shall not be more than 3 years. The 

18 Secretary may appoint members of the Advisory 

19 Committee in a manner that allows the terms of the 

20 members serving at any time to expire at spaced in21 tervals so as to ensure continuity in the functioning 

22 of the Advisory Committee. A member of the Advisory 

23 Committee whose term is expiring may be re24 appointed. 
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1 (3) CHAIRPERSON.—The Advisory Committee 

2 shall have a chairperson, who is elected by the mem3 bers from among their number. 

4 (c) REVIEW.—The Advisory Committee shall review 

5 and make recommendations to the Secretary on— 

6 (1) the implementation of programs and activi7 ties under this title; 

8 (2) the safety, economical, and environmental 

9 consequences of technologies for the production, dis10 tribution, delivery, storage, or use of hydrogen energy 

11 and fuel cells; and 

12 (3) the plan under section 802. 

13 (d) RESPONSE.— 

14 (1) CONSIDERATION OF RECOMMENDATIONS.— 

15 The Secretary shall consider, but need not adopt, any 

16 recommendations of the Advisory Committee under 

17 subsection (c). 

18 (2) BIENNIAL REPORT.—The Secretary shall 

19 transmit a biennial report to Congress describing any 

20 recommendations made by the Advisory Committee 

21 since the previous report. The report shall include a 

22 description of how the Secretary has implemented or 

23 plans to implement the recommendations, or an ex24 planation of the reasons that a recommendation will 
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1 not be implemented. The report shall be transmitted 

2 along with the President’s budget proposal. 

3 (e) SUPPORT.—The Secretary shall provide resources 

4 necessary in the judgment of the Secretary for the Advisory 

5 Committee to carry out its responsibilities under this title. 

6 § 806. External review 

7 (a) PLAN.—The Secretary shall enter into an arrange8 ment with the National Academy of Sciences to review the 

9 plan prepared under section 802, which shall be completed 

10 not later than 6 months after the Academy receives the plan. 

11 Not later than 45 days after receiving the review, the Sec12 retary shall transmit the review to Congress along with a 

13 plan to implement the review’s recommendations or an ex14 planation of the reasons that a recommendation will not 

15 be implemented. 

16 (b) ADDITIONAL REVIEW.—The Secretary shall enter 

17 into an arrangement with the National Academy of 

18 Sciences under which the Academy will review the pro19 grams under section 803 during the fourth year following 

20 the date of enactment of this Act. The Academy’s review 

21 shall include the research priorities and technical mile22 stones, and evaluate the progress toward achieving them. 

23 The review shall be completed not later than 5 years after 

24 the date of enactment of this Act. Not later than 45 days 

25 after receiving the review, the Secretary shall transmit the 
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1 review to Congress along with a plan to implement the re2 view’s recommendations or an explanation for the reasons 

3 that a recommendation will not be implemented. 

4 § 807. Miscellaneous provisions 

5 (a) REPRESENTATION.—The Secretary may represent 

6 the United States interests with respect to activities and 

7 programs under this title, in coordination with the Depart8 ment of Transportation, the National Institute of Stand9 ards and Technology, and other relevant Federal agencies, 

10 before governments and nongovernmental organizations in11 cluding— 

12 (1) other Federal, State, regional, and local gov13 ernments and their representatives; 

14 (2) industry and its representatives, including 

15 members of the energy and transportation industries; 

16 and 

17 (3) in consultation with the Department of 

18 State, foreign governments and their representatives 

19 including international organizations. 

20 (b) REGULATORY AUTHORITY.—Nothing in this title 

21 shall be construed to alter the regulatory authority of the 

22 Department. 
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1 § 808. Savings clause 

2 Nothing in this title shall be construed to affect the 

3 authority of the Secretary of Transportation that may exist 

4 prior to the date of enactment of this Act with respect to— 

5 (1) research into, and regulation of, hydrogen6 powered vehicles fuel systems integrity, standards, 

7 and safety under subtitle VI of title 49, United States 

8 Code; 

9 (2) regulation of hazardous materials transpor10 tation under chapter 51 of title 49, United States 

11 Code; 

12 (3) regulation of pipeline safety under chapter 

13 601 of title 49, United States Code; 

14 (4) encouragement and promotion of research, 

15 development, and deployment activities relating to 

16 advanced vehicle technologies under section 5506 of 

17 title 49, United States Code; 

18 (5) regulation of motor vehicle safety under 

19 chapter 301 of title 49, United States Code; 

20 (6) automobile fuel economy under chapter 329 

21 of title 49, United States Code; or 

22 (7) representation of the interests of the United 

23 States with respect to the activities and programs 

24 under the authority of title 49, United States Code. 
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1 § 809. Authorization of appropriations 

2 There are authorized to be appropriated to the Sec3 retary to carry out this title, in addition to any amounts 

4 made available for these purposes under other Acts— 

5 (1) $546,000,000 for fiscal year 2006; 

6 (2) $750,000,000 for fiscal year 2007; 

7 (3) $850,000,000 for fiscal year 2008; 

8 (4) $900,000,000 for fiscal year 2009; and 

9 (5) $1,000,000,000 for fiscal year 2010. 

10 § 810. Solar and wind technologies 

11 (a) SOLAR ENERGY TECHNOLOGIES.—The Secretary 

12 shall— 

13 (1) prepare a detailed roadmap for carrying out 

14 the provisions in this subtitle related to solar energy 

15 technologies and for implementing the recommenda16 tions related to solar energy technologies that are in17 cluded in the report transmitted under subsection (c); 

18 (2) provide for the establishment of 5 projects in 

19 geographic areas that are regionally and climatically 

20 diverse to demonstrate the production of hydrogen at 

21 solar energy facilities, including one demonstration 

22 project at a national laboratory or institution of 

23 higher education; 

24 (3) establish a research and development pro25 gram— 
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1 (A) to develop optimized concentrating solar 

2 power devices that may be used for the produc3 tion of both electricity and hydrogen; and 

4 (B) to evaluate the use of thermochemical 

5 cycles for hydrogen production at the tempera6 tures attainable with concentrating solar power 

7 devices; 

8 (4) coordinate with activities sponsored by the 

9 Department of Energy’s Office of Nuclear Energy, 

10 Science, and Technology on high-temperature mate11 rials, thermochemical cycles, and economic issues re12 lated to solar energy; 

13 (5) provide for the construction and operation of 

14 new concentrating solar power devices or solar power 

15 cogeneration facilities that produce hydrogen either 

16 concurrently with, or independently of, the production 

17 of electricity; 

18 (6) support existing facilities and research pro19 grams dedicated to the development and advancement 

20 of concentrating solar power devices; and 

21 (7) establish a program— 

22 (A) to research and develop methods that 

23 use electricity from photovoltaic devices for the 

24 onsite production of hydrogen, such that no in25 termediate transmission or distribution infra-
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1 structure is required or used and future demand 

2 growth may be accommodated; 

3 (B) to evaluate the economics of small-scale 

4 electrolysis for hydrogen production; and 

5 (C) to research the potential of modular 

6 photovoltaic devices for the development of a hy7 drogen infrastructure, the security implications 

8 of a hydrogen infrastructure, and the benefits po9 tentially derived from a hydrogen infrastructure. 

10 (b) WIND ENERGY TECHNOLOGIES.—The Secretary 

11 shall— 

12 (1) prepare a detailed roadmap for carrying out 

13 the provisions in this subtitle related to wind energy 

14 technologies and for implementing the recommenda15 tions related to wind energy technologies that are in16 cluded in the report transmitted under subsection (c); 

17 and 

18 (2) provide for the establishment of 5 projects in 

19 geographic areas that are regionally and climatically 

20 diverse to demonstrate the production of hydrogen at 

21 existing wind energy facilities, including one dem22 onstration project at a national laboratory or institu23 tion of higher education. 

24 (c) PROGRAM SUPPORT.—The Secretary shall support 

25 research programs at institutions of higher education for 
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1 the development of solar energy technologies and wind en2 ergy technologies for the production of hydrogen. The re3 search programs supported under this subsection shall— 

4 (1) enhance fellowship and faculty assistance 

5 programs; 

6 (2) provide support for fundamental research; 

7 (3) encourage collaborative research among in8 dustry, national laboratories, and institutions of 

9 higher education; 

10 (4) support communication and outreach; and 

11 (5) to the greatest extent possible— 

12 (A) be located in geographic areas that are 

13 regionally and climatically diverse; and 

14 (B) be located at part B institutions, mi15 nority institutions, and institutions of higher 

16 education located in States participating in the 

17 Experimental Program to Stimulate Competitive 

18 Research of the Department of Energy. 

19 (d) INSTITUTIONS OF HIGHER EDUCATION AND NA20 TIONAL LABORATORY INTERACTIONS.—In conjunction with 

21 the programs supported under this section, the Secretary 

22 shall develop sabbatical, fellowship, and visiting scientist 

23 programs to encourage national laboratories and institu24 tions of higher education to share and exchange personnel. 

25 (e) DEFINITIONS.—For purposes of this section— 
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1 (1) the term ‘‘concentrating solar power devices’’ 

2 means devices that concentrate the power of the sun 

3 by reflection or refraction to improve the efficiency of 

4 a photovoltaic or thermal generation process; 

5 (2) the term ‘‘institution of higher education’’ 

6 has the meaning given to that term in section 101(a) 

7 of the Higher Education Act of 1965 (20 U.S.C. 

8 1001(a)); 

9 (3) the term ‘‘minority institution’’ has the 

10 meaning given to that term in section 365 of the 

11 Higher Education Act of 1965 (20 U.S.C. 1067k); 

12 (4) the term ‘‘part B institution’’ has the mean13 ing given to that term in section 322 of the Higher 

14 Education Act of 1965 (20 U.S.C. 1061); and 

15 (5) the term ‘‘photovoltaic devices’’ means devices 

16 that convert light directly into electricity through a 

17 solid-state, semiconductor process. 

18 TITLE IX—STUDIES AND 

19 PROGRAM SUPPORT 

20 § 901. Goals 

21 (a) IN GENERAL.—The Secretary shall conduct a bal22 anced set of programs of study to support Federal energy 

23 policy and programs by the Department. Such programs 

24 shall be focused on— 
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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 foreign 

6 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 distrib17 uted generation), transmission, and storage. 

18 (3) Renewable energy technologies including 

19 wind power, photovoltaics, solar thermal systems, geo20 thermal energy, hydrogen-fueled systems, biomass21 based systems, biofuels, and hydropower. 

22 (4) Fossil energy including power generation, 

23 onshore and offshore oil and gas resource recovery, 

24 and transportation. 
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1 (5) Nuclear energy including programs for exist2 ing 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 from 

6 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 support 

16 the establishment of regulatory standards or reg17 ulatory requirements; or 

18 (C) alter the authority of the Secretary to 

19 make grants or other awards. 

20 (2) NO LIMITATION.—Nothing in this subsection 

21 shall be construed to limit the authority of the Sec22 retary to impose conditions on grants or other awards 

23 based on the goals in subsection (a) or any subsequent 

24 modification thereto. 
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1 § 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 vest7 ed in the Secretary of Energy by the Department of 

8 Energy Organization Act (42 U.S.C. 7101 et seq.) or 

9 other law. 

10 (3) INSTITUTION OF HIGHER EDUCATION.—The 

11 term ‘‘institution of higher education’’ has the mean12 ing given that term in section 101(a) of the Higher 

13 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 § 904. Energy efficiency 

18 (a) IN GENERAL.—The following sums are authorized 

19 to be appropriated to the Secretary for energy efficiency and 

20 conservation activities, including activities authorized 

21 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. 
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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, $2,000,000 

20 for each of fiscal years 2007 through 2010. 

21 (c) EXTENDED AUTHORIZATION.—There are author22 ized to be appropriated to the Secretary for activities under 

23 section 905, $50,000,000 for each of fiscal years 2011 

24 through 2015. 
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1 (d) LIMITATION ON USE OF FUNDS.—None of the 

2 funds authorized to be appropriated under this section may 

3 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 § 905. Next Generation Lighting Initiative 

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

17 Next Generation Lighting Initiative in accordance with this 

18 section to support activities related to advanced solid-state 

19 lighting technologies based on white light emitting diodes. 

20 (b) OBJECTIVES.—The objectives of the initiative shall 

21 be to develop advanced solid-state organic and inorganic 

22 lighting technologies based on white light emitting diodes 

23 that, compared to incandescent and fluorescent lighting 

24 technologies, are longer lasting; more energy-efficient; and 

25 cost-competitive, and have less environmental impact. 
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1 (c) INDUSTRY ALLIANCE.—The Secretary shall, not 

2 later than 3 months after the date of enactment of this sec3 tion, competitively select an Industry Alliance to represent 

4 participants that are private, for-profit firms which, as a 

5 group, are broadly representative of United States solid 

6 state lighting expertise as a whole. 

7 (d) STUDY.— 

8 (1) IN GENERAL.—The Secretary shall carry out 

9 the activities of the Next Generation Lighting Initia10 tive through competitively awarded grants, including 

11 to Industry Alliance participants, National Labora12 tories, and institutions of higher education. 

13 (2) ASSISTANCE FROM THE INDUSTRY ALLI14 ANCE.—The Secretary shall annually solicit from the 

15 Industry Alliance— 

16 (A) comments to identify solid-state lighting 

17 technology needs; 

18 (B) assessment of the progress of the Initia19 tive’s research activities; and 

20 (C) assistance in annually updating solid21 state lighting technology roadmaps. 

22 (3) AVAILABILITY OF INFORMATION AND ROAD23 MAPS.—The information and roadmaps under para24 graph (2) shall be available to the public and public 

25 response shall be solicited by the Secretary. 
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1 (e) INTELLECTUAL PROPERTY.—The Secretary may 

2 require, in accordance with the authorities provided in sec3 tion 202(a)(ii) of title 35, United States Code, section 152 

4 of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 

5 section 9 of the Federal Nonnuclear Energy Research and 

6 Development Act of 1974 (42 U.S.C. 5908), that— 

7 (1) for any new invention resulting from activi8 ties under subsection (d)— 

9 (A) the Industry Alliance members that are 

10 active participants in research, development, and 

11 demonstration activities related to the advanced 

12 solid-state lighting technologies that are the sub13 ject of this section shall be granted first option 

14 to negotiate with the invention owner nonexclu15 sive licenses and royalties for uses of the inven16 tion related to solid-state lighting on terms that 

17 are reasonable under the circumstances; and 

18 (B)(i) for 1 year after a United States pat19 ent is issued for the invention, the patent holder 

20 shall not negotiate any license or royalty with 

21 any entity that is not a participant in the In22 dustry Alliance described in subparagraph (A); 

23 and 

24 (ii) during the year described in clause (i), 

25 the invention owner shall negotiate nonexclusive 
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1 licenses and royalties in good faith with any in2 terested participant in the Industry Alliance de3 scribed in subparagraph (A); and 

4 (2) such other terms as the Secretary determines 

5 are required to promote accelerated commercialization 

6 of inventions made under the Initiative. 

7 (f) NATIONAL ACADEMY REVIEW.—The Secretary shall 

8 enter into an arrangement with the National Academy of 

9 Sciences to conduct periodic reviews of the Next Generation 

10 Lighting Initiative. The Academy shall review the prior11 ities, technical milestones, and plans for technology transfer 

12 and progress towards achieving them. The Secretary shall 

13 consider the results of such reviews in evaluating the infor14 mation obtained under subsection (d)(2). 

15 (g) DEFINITIONS.—As used in this section: 

16 (1) ADVANCED SOLID-STATE LIGHTING.—The 

17 term ‘‘advanced solid-state lighting’’ means a 

18 semiconducting device package and delivery system 

19 that produces white light using externally applied 

20 voltage. 

21 (2) INDUSTRY ALLIANCE.—The term ‘‘Industry 

22 Alliance’’ means an entity selected by the Secretary 

23 under subsection (c). 

24 (3) WHITE LIGHT EMITTING DIODE.—The term 

25 ‘‘white light emitting diode’’ means a semiconducting 
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1 package, utilizing either organic or inorganic mate2 rials, that produces white light using externally ap3 plied voltage. 

4 § 906. National Building Performance Initiative 

5 (a) INTERAGENCY GROUP.—Not later than 90 days 

6 after the date of enactment of this Act, the President shall 

7 establish an interagency group to develop, in coordination 

8 with the advisory committee established under subsection 

9 (e), a National Building Performance Initiative (in this 

10 section referred to as the ‘‘Initiative’’). The interagency 

11 group shall be co-chaired by appropriate officials of the De12 partment and the Department of Commerce, who shall 

13 jointly arrange for the provision of necessary administra14 tive support to the group. 

15 (b) INTEGRATION OF EFFORTS.—The Initiative, work16 ing with the National Institute of Building Sciences, shall 

17 integrate Federal, State, and voluntary private sector ef18 forts to reduce the costs of construction, operation, mainte19 nance, and renovation of commercial, industrial, institu20 tional, and residential buildings. 

21 (c) DEPARTMENT OF ENERGY ROLE.—Within the Fed22 eral portion of the Initiative, the Department shall be the 

23 lead agency for all aspects of building performance related 

24 to use and conservation of energy. 

25 (d) ADVISORY COMMITTEE.— 
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1 (1) ESTABLISHMENT.—The Secretary, in con2 sultation with the Secretary of Commerce and the Di3 rector of the Office of Science and Technology Policy, 

4 shall establish an advisory committee to— 

5 (A) analyze and provide recommendations 

6 on potential private sector roles and participa7 tion in the Initiative; and 

8 (B) review and provide recommendations on 

9 the plan described in subsection (c). 

10 (2) MEMBERSHIP.—Membership of the advisory 

11 committee shall include representatives with a broad 

12 range of appropriate expertise, including expertise 

13 in— 

14 (A) building technology; 

15 (B) architecture, engineering, and building 

16 materials and systems; and 

17 (C) the residential, commercial, and indus18 trial sectors of the construction industry. 

19 (e) CONSTRUCTION.—Nothing in this section provides 

20 any Federal agency with new authority to regulate building 

21 performance. 

22 § 907. Secondary electric vehicle battery use program 

23 (a) DEFINITIONS.—For purposes of this section: 

24 (1) ASSOCIATED EQUIPMENT.—The term ‘‘associ25 ated equipment’’ means equipment located where the 
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1 batteries will be used that is necessary to enable the 

2 use of the energy stored in the batteries. 

3 (2) BATTERY.—The term ‘‘battery’’ means an en4 ergy storage device that previously has been used to 

5 provide motive power in a vehicle powered in whole 

6 or in part by electricity. 

7 (b) PROGRAM.—The Secretary shall establish and con8 duct a program of study for the secondary use of batteries 

9 if the Secretary finds that there are sufficient numbers of 

10 such batteries to support the program. The program shall 

11 be— 

12 (1) designed to demonstrate the use of batteries 

13 in secondary applications, including utility and com14 mercial power storage and power quality; 

15 (2) structured to evaluate the performance, in16 cluding useful service life and costs, of such batteries 

17 in field operations, and the necessary supporting in18 frastructure, including reuse and disposal of batteries; 

19 and 

20 (3) coordinated with ongoing secondary battery 

21 use programs at the National Laboratories and in in22 dustry. 

23 (c) SOLICITATION.—Not later than 180 days after the 

24 date of enactment of this Act, if the Secretary finds under 

25 subsection (b) that there are sufficient numbers of batteries 
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1 to support the program, the Secretary shall solicit proposals 

2 to demonstrate the secondary use of batteries and associated 

3 equipment and supporting infrastructure in geographic lo4 cations throughout the United States. The Secretary may 

5 make additional solicitations for proposals if the Secretary 

6 determines that such solicitations are necessary to carry out 

7 this section. 

8 (d) SELECTION OF PROPOSALS.— 

9 (1) IN GENERAL.—The Secretary shall, not later 

10 than 90 days after the closing date established by the 

11 Secretary for receipt of proposals under subsection 

12 (c), select up to 5 proposals which may receive finan13 cial assistance under this section, subject to the avail14 ability of appropriations. 

15 (2) DIVERSITY; ENVIRONMENTAL EFFECT.—In 

16 selecting proposals, the Secretary shall consider diver17 sity of battery type, geographic and climatic diver18 sity, and life-cycle environmental effects of the ap19 proaches. 

20 (3) LIMITATION.—No 1 project selected under 

21 this section shall receive more than 25 percent of the 

22 funds authorized for the program under this section. 

23 (4) OPTIMIZATION OF FEDERAL RESOURCES.— 

24 The Secretary shall consider the extent of involvement 

25 of State or local government and other persons in 
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1 each demonstration project to optimize use of Federal 

2 resources. 

3 (5) OTHER CRITERIA.—The Secretary may con4 sider such other criteria as the Secretary considers 

5 appropriate. 

6 (e) CONDITIONS.—The Secretary shall require that— 

7 (1) relevant information be provided to the De8 partment, the users of the batteries, the proposers, and 

9 the battery manufacturers; 

10 (2) the proposer provide at least 50 percent of 

11 the costs associated with the proposal; and 

12 (3) the proposer provide to the Secretary such in13 formation regarding the disposal of the batteries as 

14 the Secretary may require to ensure that the proposer 

15 disposes of the batteries in accordance with applicable 

16 law. 

17 § 908. Energy efficiency study initiative 

18 (a) ESTABLISHMENT.—The Secretary shall establish 

19 an Energy Efficiency Science Initiative to be managed by 

20 the Assistant Secretary in the Department with responsi21 bility for energy conservation under section 203(a)(9) of the 

22 Department of Energy Organization Act (42 U.S.C. 

23 7133(a)(9)), in consultation with the Director of the Office 

24 of Science, for grants to be competitively awarded and sub25 ject to peer review for studies relating to energy efficiency. 
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1 (b) REPORT.—The Secretary shall submit to Congress, 

2 along with the President’s annual budget request under sec3 tion 1105(a) of title 31, United States Code, a report on 

4 the activities of the Energy Efficiency Science Initiative, 

5 including a description of the process used to award the 

6 funds and an explanation of how the studies relate to energy 

7 efficiency. 

8 § 909. Electric motor control technology 

9 The Secretary shall conduct a program of study on ad10 vanced control devices to improve the energy efficiency of 

11 electric motors used in heating, ventilation, air condi12 tioning, and comparable systems. 

13 Subtitle B—Distributed Energy and Electric Energy 

14 Systems 

15 § 911. Distributed energy and electric energy systems 

16 (a) IN GENERAL.—The following sums are authorized 

17 to be appropriated to the Secretary for distributed energy 

18 and electric energy systems activities, including activities 

19 authorized under this subtitle: 

20 (1) For fiscal year 2006, $190,000,000. 

21 (2) For fiscal year 2007, $200,000,000. 

22 (3) For fiscal year 2008, $220,000,000. 

23 (4) For fiscal year 2009, $240,000,000. 

24 (5) For fiscal year 2010, $260,000,000. 
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1 (b) MICRO-COGENERATION ENERGY TECHNOLOGY.— 

2 From amounts authorized under subsection (a), 

3 $20,000,000 for each of fiscal years 2006 and 2007 is au4 thorized for activities under section 914. 

5 § 913. High power density industry program 

6 The Secretary shall establish a comprehensive program 

7 of study to improve energy efficiency of high power density 

8 facilities, including data centers, server farms, and tele9 communications facilities. Such program shall consider 

10 technologies that provide significant improvement in ther11 mal controls, metering, load management, peak load reduc12 tion, or the efficient cooling of electronics. 

13 § 916. Reciprocating power 

14 The Secretary shall conduct a program of study re15 garding fuel system optimization and emissions reduction 

16 after-treatment technologies for industrial reciprocating en17 gines. Such after-treatment technologies shall use processes 

18 that reduce emissions by recirculating exhaust gases and 

19 shall be designed to be retrofitted to any new or existing 

20 diesel or natural gas engine used for power generation, 

21 peaking power generation, combined heat and power, or 

22 compression. 

23 § 917. Advanced portable power devices 

24 (a) PROGRAM.—The Secretary shall— 
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1 (1) establish a program to develop working mod2 els of small scale portable power devices; and 

3 (2) to the fullest extent practicable, identify and 

4 utilize the resources of universities that have shown 

5 expertise with respect to advanced portable power de6 vices for either civilian or military use. 

7 (b) ORGANIZATION.—The universities identified and 

8 utilized under subsection (a)(2) are authorized to establish 

9 an organization to promote small scale portable power de10 vices. 

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

12 term ‘‘small scale portable power device’’ means a field 

13 deployable portable mechanical or electromechanical device 

14 that can be used for applications such as communications, 

15 computation, mobility enhancement, weapons systems, opti16 cal devices, cooling, sensors, medical devices and active bio17 logical agent detection systems. 

18 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

19 authorized to be appropriated to the Secretary for carrying 

20 out this section $8,000,000 for the period encompassing fis21 cal years 2006 through 2010. 

22 Subtitle C—Renewable Energy 

23 § 918. Renewable energy 

24 (a) IN GENERAL.—The following sums are authorized 

25 to be appropriated to the Secretary for renewable energy 
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1 activities, including activities authorized under this sub2 title: 

3 (1) For fiscal year 2006, $480,000,000. 

4 (2) For fiscal year 2007, $550,000,000. 

5 (3) For fiscal year 2008, $610,000,000. 

6 (4) For fiscal year 2009, $659,000,000. 

7 (5) For fiscal year 2010, $710,000,000. 

8 (b) BIOENERGY.—From the amounts authorized under 

9 subsection (a), the following sums are authorized to be ap10 propriated to carry out section 919: 

11 (1) For fiscal year 2006, $135,425,000. 

12 (2) For fiscal year 2007, $155,600,000. 

13 (3) For fiscal year 2008, $167,650,000. 

14 (4) For fiscal year 2009, $180,000,000. 

15 (5) For fiscal year 2010, $192,000,000. 

16 (c) CONCENTRATING SOLAR POWER.—From amounts 

17 authorized under subsection (a), the following sums are au18 thorized to be appropriated to carry out section 920: 

19 (1) For fiscal year 2006, $20,000,000. 

20 (2) For fiscal year 2007, $40,000,000. 

21 (3) For each of fiscal years 2008, 2009, and 

22 2010, $50,000,000. 

23 (d) PUBLIC BUILDINGS.—From the amounts author24 ized under subsection (a), $30,000,000 for each of the fiscal 
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1 years 2006 through 2010 are authorized to be appropriated 

2 to carry out section 922. 

3 (e) LIMITS ON USE OF FUNDS.— 

4 (1) NO FUNDS FOR RENEWABLE SUPPORT AND

5 IMPLEMENTATION.—None of the funds authorized to 

6 be appropriated under this section may be used for 

7 Renewable Support and Implementation. 

8 (2) GRANTS.—Of the funds authorized under 

9 subsection (b), not less than $5,000,000 for each fiscal 

10 year shall be made available for grants to Histori11 cally Black Colleges and Universities, Tribal Colleges, 

12 and Hispanic-Serving Institutions. 

13 (3) REGIONAL FIELD VERIFICATION PROGRAM.— 

14 Of the funds authorized under subsection (a), not less 

15 than $4,000,000 for each fiscal year shall be made 

16 available for the Regional Field Verification Program 

17 of the Department. 

18 (4) OFF-STREAM PUMPED STORAGE HYDRO19 POWER.—Of the funds authorized under subsection 

20 (a), such sums as may be necessary shall be made 

21 available for demonstration projects of off-stream 

22 pumped storage hydropower. 

23 (f) CONSULTATION.—In carrying out this subtitle, the 

24 Secretary, in consultation with the Secretary of Agri25 culture, shall demonstrate the use of advanced wind power 
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1 technology, including combined use with coal gasification; 

2 biomass; geothermal energy systems; and other renewable 

3 energy technologies to assist in delivering electricity to 

4 rural and remote locations. 

5 § 919. Bioenergy programs 

6 (a) DEFINITIONS.—For the purposes of this section: 

7 (1) The term ‘‘agricultural byproducts’’ includes 

8 waste products, including poultry fat and poultry 

9 waste. 

10 (2) The term ‘‘cellulosic biomass’’ means any 

11 portion of a crop containing lignocellulose or hemi12 cellulose, including barley grain, grapeseed, forest 

13 thinnings, rice bran, rice hulls, rice straw, soybean 

14 matter, and sugarcane bagasse, or any crop grown 

15 specifically for the purpose of producing cellulosic 

16 feedstocks. 

17 (b) PROGRAM.—The Secretary shall conduct a pro18 gram of study for bioenergy, including— 

19 (1) biopower energy systems; 

20 (2) biofuels; 

21 (3) bio-based products; 

22 (4) integrated biorefineries that may produce 

23 biopower, biofuels, and bio-based products; 

24 (5) cross-cutting research and development in 

25 feedstocks and enzymes; and 
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1 (6) economic analysis. 

2 (c) BIOFUELS AND BIO-BASED PRODUCTS.—The goals 

3 of the biofuels and bio-based products programs shall be to 

4 promote, in partnership with industry— 

5 (1) advanced biochemical and thermochemical 

6 conversion technologies capable of making biofuels 

7 that are price-competitive with gasoline or diesel in 

8 either internal combustion engines or fuel cell-pow9 ered vehicles, and bio-based products from a variety 

10 of feedstocks, including grains, cellulosic biomass, and 

11 other agricultural byproducts; and 

12 (2) advanced biotechnology processes capable of 

13 making biofuels and bio-based products with empha14 sis on development of biorefinery technologies using 

15 enzyme-based processing systems. 

16 § 920. Concentrating solar power study program 

17 (a) IN GENERAL.—The Secretary shall conduct a pro18 gram of study to evaluate the potential of concentrating 

19 solar power for hydrogen production, including cogenera20 tion approaches for both hydrogen and electricity. Such pro21 gram shall take advantage of existing facilities to the extent 

22 possible and shall include— 

23 (1) development of optimized technologies that 

24 are common to both electricity and hydrogen produc25 tion; 
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1 (2) evaluation of thermochemical cycles for hy2 drogen production at the temperatures attainable 

3 with concentrating solar power; 

4 (3) evaluation of materials issues for the 

5 thermochemical cycles described in paragraph (2); 

6 (4) system architectures and economics studies; 

7 and 

8 (5) coordination with activities in the Advanced 

9 Reactor Hydrogen Cogeneration Project on high tem10 perature materials, thermochemical cycles, and eco11 nomic issues. 

12 (b) ASSESSMENT.—In carrying out the program under 

13 this section, the Secretary shall— 

14 (1) assess conflicting guidance on the economic 

15 potential of concentrating solar power for electricity 

16 production received from the National Research Coun17 cil report entitled ‘‘Renewable Power Pathways: A 

18 Review of the U.S. Department of Energy’s Renew19 able Energy Programs’’ in 2000 and subsequent De20 partment-funded reviews of that report; and 

21 (2) provide an assessment of the potential im22 pact of the technology before, or concurrent with, sub23 mission of the fiscal year 2008 budget. 

24 (c) REPORT.—Not later than 5 years after the date of 

25 enactment of this Act, the Secretary shall provide a report 
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1 to Congress on the economic and technical potential for elec2 tricity or hydrogen production, with or without cogenera3 tion, with concentrating solar power. 

4 § 921. Miscellaneous projects 

5 The Secretary may conduct studies for— 

6 (1) ocean energy, including wave energy; and 

7 (2) the combined use of renewable energy tech8 nologies with one another and with other energy tech9 nologies, including the combined use of wind power 

10 and coal gasification technologies. 

11 § 922. Renewable energy in public buildings 

12 (a) TECHNOLOGY TRANSFER PROGRAM.—The Sec13 retary shall establish a program for the transfer of innova14 tive technologies for solar and other renewable energy 

15 sources in buildings owned or operated by a State or local 

16 government, and for the dissemination of information re17 sulting from an assessment of such program to interested 

18 parties. 

19 (b) LIMIT ON FEDERAL FUNDING.—The Secretary 

20 shall provide under this section no more than 40 percent 

21 of the incremental costs of the solar or other renewable en22 ergy source project funded. 

23 (c) REQUIREMENT.—As part of the application for 

24 awards under this section, the Secretary shall require all 

25 applicants— 
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1 (1) to demonstrate a continuing commitment to 

2 the use of solar and other renewable energy sources in 

3 buildings they own or operate; and 

4 (2) to state how they expect any award to further 

5 their transition to the significant use of renewable en6 ergy. 

7 § 923. University biodiesel program 

8 (a) IN GENERAL.—The Secretary shall establish a pro9 gram regarding the feasibility of the operation of diesel elec10 tric power generators, using biodiesel fuels, with ratings as 

11 high as B100 at a university electric generation facility. 

12 The program shall examine— 

13 (1) heat rates of diesel fuels with large quantities 

14 of cellulosic content; 

15 (2) the reliability of operation of various fuel 

16 blends; 

17 (3) performance in cold or freezing weather; 

18 (4) stability of fuel after extended storage; and 

19 (5) other criteria, as determined by the Sec20 retary. 

21 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary $400,000 to 

23 carry out subsection (a). Such funds shall remain available 

24 until expended. 
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1 Subtitle D—Nuclear Energy 

2 § 929. Alternatives to industrial radioactive sources 

3 (a) STUDY.—The Secretary shall conduct a study and 

4 provide a report to Congress not later than August 1, 2006. 

5 The study shall— 

6 (1) survey industrial applications of large radio7 active sources, including well-logging sources; 

8 (2) review current domestic and international 

9 Department, Department of Defense, Department of 

10 State, and commercial programs to manage and dis11 pose of radioactive sources; 

12 (3) discuss disposal options and practices for 

13 currently deployed or future sources and, if defi14 ciencies are noted in existing disposal options or 

15 practices for either deployed or future sources, rec16 ommend options to remedy deficiencies; and 

17 (4) develop a program plan for research and de18 velopment to develop alternatives to large industrial 

19 sources that reduce safety, environmental, or pro20 liferation risks to either workers using the sources or 

21 the public. 

22 (b) PROGRAM.—The Secretary shall establish a re23 search and development program to implement the program 

24 plan developed under subsection (a)(4). The program shall 

25 include miniaturized particle accelerators for well-logging 

26 or other industrial applications and portable accelerators 
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1 for production of short-lived radioactive materials at an in2 dustrial site. 

3 § 930. Geological isolation of spent fuel 

4 The Secretary shall conduct a study to determine the 

5 feasibility of deep borehole disposal of spent nuclear fuel 

6 and high-level radioactive waste. The study shall emphasize 

7 geological, chemical, and hydrological characterization of, 

8 and design of engineered structures for, deep borehole envi9 ronments. Not later than 1 year after the date of enactment 

10 of this Act, the Secretary shall transmit the study to Con11 gress. 

12 Subtitle E—Fossil Energy 

13 PART I—STUDIES AND PROGRAM SUPPORT 

14 § 931. Fossil energy 

15 (a) IN GENERAL.—The following sums are authorized 

16 to be appropriated to the Secretary for fossil energy activi17 ties, including activities authorized under this part: 

18 (1) For fiscal year 2006, $530,000,000. 

19 (2) For fiscal year 2007, $556,000,000. 

20 (3) For fiscal year 2008, $583,000,000. 

21 (4) For fiscal year 2009, $611,000,000. 

22 (5) For fiscal year 2010, $626,000,000. 

23 (b) ALLOCATIONS.—From amounts authorized under 

24 subsection (a), the following sums are authorized: 
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1 (1) For activities under section 932(b)(2), 

2 $28,000,000 for each of the fiscal years 2006 through 

3 2010. 

4 (2) For activities under section 934— 

5 (A) for fiscal year 2006, $12,000,000; 

6 (B) for fiscal year 2007, $15,000,000; and 

7 (C) for each of fiscal years 2008 through 

8 2010, $20,000,000. 

9 (3) For activities under section 935— 

10 (A) for fiscal year 2006, $259,000,000; 

11 (B) for fiscal year 2007, $272,000,000; 

12 (C) for fiscal year 2008, $285,000,000; 

13 (D) for fiscal year 2009, $298,000,000; and 

14 (E) for fiscal year 2010, $308,000,000. 

15 (4) For the Office of Arctic Energy under section 

16 3197 of the Floyd D. Spence National Defense Au17 thorization Act for Fiscal Year 2001 (42 U.S.C. 

18 7144d), $25,000,000 for each of fiscal years 2006 

19 through 2010. 

20 (5) For activities under section 933, $4,000,000 

21 for fiscal year 2006 and $2,000,000 for each of fiscal 

22 years 2007 through 2010. 

23 (c) EXTENDED AUTHORIZATION.—There are author24 ized to be appropriated to the Secretary for the Office of 

25 Arctic Energy under section 3197 of the Floyd D. Spence 
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1 National Defense Authorization Act for Fiscal Year 2001 

2 (42 U.S.C. 7144d), $25,000,000 for each of fiscal years 2009 

3 through 2012. 

4 (d) LIMITS ON USE OF FUNDS.— 

5 (1) NO FUNDS FOR CERTAIN PROGRAMS.—None 

6 of the funds authorized under this section may be 

7 used for Fossil Energy Environmental Restoration or 

8 Import/Export Authorization. 

9 (2) INSTITUTIONS OF HIGHER EDUCATION.—Of 

10 the funds authorized under subsection (b)(2), not less 

11 than 20 percent of the funds appropriated for each 

12 fiscal year shall be dedicated to activities carried out 

13 at institutions of higher education. 

14 § 932. Oil and gas studies 

15 (a) OIL AND GAS STUDIES.—The Secretary shall con16 duct a program of studies on oil and gas, including— 

17 (1) exploration and production; 

18 (2) gas hydrates; 

19 (3) reservoir life and extension; 

20 (4) transportation and distribution infrastruc21 ture; 

22 (5) ultraclean fuels; 

23 (6) heavy oil and oil shale; 

24 (7) related environmental research; and 

25 (8) compressed natural gas marine transport. 
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1 (b) FUEL CELLS.— 

2 (1) IN GENERAL.—The Secretary shall conduct a 

3 program of studies on fuel cells for low-cost, high-effi4 ciency, fuel-flexible, modular power systems. 

5 (2) IMPROVED MANUFACTURING PRODUCTION

6 AND PROCESSES.—The studies under paragraph (1) 

7 shall include fuel cell technology for commercial, resi8 dential, and transportation applications, and distrib9 uted generation systems, utilizing improved manufac10 turing production and processes. 

11 (c) NATURAL GAS AND OIL DEPOSITS REPORT.—Not 

12 later than 2 years after the date of enactment of this Act, 

13 and every 2 years thereafter, the Secretary of the Interior, 

14 in consultation with other appropriate Federal agencies, 

15 shall transmit a report to Congress of the latest estimates 

16 of natural gas and oil reserves, reserves growth, and undis17 covered resources in Federal and State waters off the coast 

18 of Louisiana and Texas. 

19 (d) INTEGRATED CLEAN POWER AND ENERGY.— 

20 (1) NATIONAL CENTER OR CONSORTIUM OF EX21 CELLENCE.—The Secretary shall establish a national 

22 center or consortium of excellence in clean energy and 

23 power generation to address the Nation’s critical de24 pendence on energy and the need to reduce emissions. 
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1 (2) PROGRAM.—The center or consortium shall 

2 conduct a program integrating the following focus 

3 areas: 

4 (A) Efficiency and reliability of gas tur5 bines for power generation. 

6 (B) Reduction in emissions from power gen7 eration. 

8 (C) Promotion of energy conservation 

9 issues. 

10 (D) Effectively utilizing alternative fuels 

11 and renewable energy. 

12 (E) Advanced materials technology for oil 

13 and gas exploration and utilization in harsh en14 vironments. 

15 (F) Education on energy and power genera16 tion issues. 

17 § 933. Technology transfer 

18 The Secretary shall establish a competitive program 

19 to award a contract to a nonprofit entity for the purpose 

20 of transferring technologies developed with public funds. 

21 The entity selected under this section shall have experience 

22 in offshore oil and gas technology management, in the 

23 transfer of technologies developed with public funds to the 

24 offshore and maritime industry, and in management of an 

25 offshore and maritime industry consortium. The program 
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1 consortium selected under section 942 shall not be eligible 

2 for selection under this section. When appropriate, the Sec3 retary shall consider utilizing the entity selected under this 

4 section when implementing the activities authorized by sec5 tion 975. 

6 § 934. Coal mining technologies 

7 (a) ESTABLISHMENT.—The Secretary shall carry out 

8 a program of studies on coal mining technologies. The Sec9 retary shall cooperate with appropriate Federal agencies, 

10 coal producers, trade associations, equipment manufactur11 ers, institutions of higher education with mining engineer12 ing departments, and other relevant entities. 

13 (b) PROGRAM.—The activities carried out under this 

14 section shall— 

15 (1) be guided by the mining priorities identified 

16 by the Mining Industry of the Future Program and 

17 in the recommendations from relevant reports of the 

18 National Academy of Sciences on mining technologies; 

19 and 

20 (2) include activities exploring minimization of 

21 contaminants in mined coal that contribute to envi22 ronmental concerns. 

23 § 935. Coal and related technologies program 

24 (a) IN GENERAL.—In addition to the programs au25 thorized under title IV, the Secretary shall conduct a pro-
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1 gram of technology to study coal and power systems, includ2 ing programs to facilitate production and generation of 

3 coal-based power through— 

4 (1) innovations for existing plants; 

5 (2) integrated gasification combined cycle; 

6 (3) advanced combustion systems; 

7 (4) turbines for synthesis gas derived from coal; 

8 (5) carbon capture and sequestration; 

9 (6) coal-derived transportation fuels and chemi10 cals; 

11 (7) solid fuels and feedstocks; 

12 (8) advanced studies; 

13 (9) advanced separation technologies; and 

14 (10) a joint project for permeability enhance15 ment in coals for natural gas production and carbon 

16 dioxide sequestration. 

17 (b) COST AND PERFORMANCE GOALS.—In carrying 

18 out programs authorized by this section, the Secretary shall 

19 identify cost and performance goals for coal-based tech20 nologies that would permit the continued cost-competitive 

21 use of coal for electricity generation, as chemical feedstocks, 

22 and as transportation fuel in 2007, 2015, and the years 

23 after 2020. In establishing such cost and performance goals, 

24 the Secretary shall— 
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1 (1) consider activities and studies undertaken to 

2 date by industry in cooperation with the Department 

3 in support of such assessment; 

4 (2) consult with interested entities, including 

5 coal producers, industries using coal, organizations to 

6 promote coal and advanced coal technologies, environ7 mental organizations, and organizations representing 

8 workers; 

9 (3) not later than 120 days after the date of en10 actment of this Act, publish in the Federal Register 

11 proposed draft cost and performance goals for public 

12 comments; and 

13 (4) not later than 180 days after the date of en14 actment of this Act and every 4 years thereafter, sub15 mit to Congress a report describing final cost and 

16 performance goals for such technologies that includes 

17 a list of technical milestones as well as an expla18 nation of how programs authorized in this section 

19 will not duplicate the activities authorized under the 

20 Clean Coal Power Initiative authorized under subtitle 

21 A of title IV. 

22 § 936. Complex Well Technology Testing Facility 

23 The Secretary, in coordination with industry leaders 

24 in extended research drilling technology, shall establish a 

25 Complex Well Technology Testing Facility at the Rocky 
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1 Mountain Oilfield Testing Center to increase the range of 

2 extended drilling technologies. 

3 PART II—ULTRA-DEEPWATER AND UNCONVEN4 TIONAL NATURAL GAS AND OTHER PETRO5 LEUM RESOURCES 

6 § 941. Program authority 

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

8 program under this part regarding technologies for ultra9 deepwater and unconventional natural gas and other petro10 leum resource exploration and production, including ad11 dressing the technology challenges for small producers, safe 

12 operations, and environmental mitigation (including re13 duction of greenhouse gas emissions and sequestration of 

14 carbon). 

15 (b) PROGRAM ELEMENTS.—The program under this 

16 part shall address the following areas, including improving 

17 safety and minimizing environmental impacts of activities 

18 within each area: 

19 (1) Ultra-deepwater technology, including drill20 ing to formations in the Outer Continental Shelf to 

21 depths greater than 15,000 feet. 

22 (2) Ultra-deepwater architecture. 

23 (3) Unconventional natural gas and other petro24 leum resource exploration and production technology, 
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1 including the technology challenges of small pro2 ducers. 

3 (c) LIMITATION ON LOCATION OF FIELD ACTIVITIES.— 

4 Field activities under the program under this part shall 

5 be carried out only— 

6 (1) in— 

7 (A) areas in the territorial waters of the 

8 United States not under any Outer Continental 

9 Shelf moratorium as of September 30, 2002; 

10 (B) areas onshore in the United States on 

11 public land administered by the Secretary of the 

12 Interior available for oil and gas leasing, where 

13 consistent with applicable law and land use 

14 plans; and 

15 (C) areas onshore in the United States on 

16 State or private land, subject to applicable law; 

17 and 

18 (2) with the approval of the appropriate Federal 

19 or State land management agency or private land 

20 owner. 

21 (d) CONSULTATION WITH SECRETARY OF THE INTE22 RIOR.—In carrying out this part, the Secretary shall con23 sult regularly with the Secretary of the Interior. 
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1 § 942. Ultra-deepwater Program 

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

3 activities under section 941(a), to maximize the use of the 

4 ultra-deepwater natural gas and other petroleum resources 

5 of the United States by increasing the supply of such re6 sources, through reducing the cost and increasing the effi7 ciency of exploration for and production of such resources, 

8 while improving safety and minimizing environmental im9 pacts. 

10 (b) ROLE OF THE SECRETARY.—The Secretary shall 

11 have ultimate responsibility for, and oversight of, all aspects 

12 of the program under this section. 

13 (c) ROLE OF THE PROGRAM CONSORTIUM.— 

14 (1) IN GENERAL.—The Secretary may contract 

15 with a consortium to— 

16 (A) manage awards pursuant to subsection 

17 (f)(4); 

18 (B) make recommendations to the Secretary 

19 for project solicitations; 

20 (C) disburse funds awarded under sub21 section (f) as directed by the Secretary in accord22 ance with the annual plan under subsection (e); 

23 and 

24 (D) carry out other activities assigned to 

25 the program consortium by this section. 
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1 (2) LIMITATION.—The Secretary may not assign 

2 any activities to the program consortium except as 

3 specifically authorized under this section. 

4 (3) CONFLICT OF INTEREST.— 

5 (A) PROCEDURES.—The Secretary shall es6 tablish procedures— 

7 (i) to ensure that each board member, 

8 officer, or employee of the program consor9 tium who is in a decision-making capacity 

10 under subsection (f)(3) or (4) shall disclose 

11 to the Secretary any financial interests in, 

12 or financial relationships with, applicants 

13 for or recipients of awards under this sec14 tion, including those of his or her spouse or 

15 minor child, unless such relationships or in16 terests would be considered to be remote or 

17 inconsequential; and 

18 (ii) to require any board member, offi19 cer, or employee with a financial relation20 ship or interest disclosed under clause (i) to 

21 recuse himself or herself from any review 

22 under subsection (f)(3) or oversight under 

23 subsection (f)(4) with respect to such appli24 cant or recipient. 
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1 (B) FAILURE TO COMPLY.—The Secretary 

2 may disqualify an application or revoke an 

3 award under this section if a board member, offi4 cer, or employee has failed to comply with proce5 dures required under subparagraph (A)(ii). 

6 (d) SELECTION OF THE PROGRAM CONSORTIUM.— 

7 (1) IN GENERAL.—The Secretary shall select the 

8 program consortium through an open, competitive 

9 process. 

10 (2) MEMBERS.—The program consortium may 

11 include corporations, trade associations, institutions 

12 of higher education, National Laboratories, or other 

13 research institutions. After submitting a proposal 

14 under paragraph (4), the program consortium may 

15 not add members without the consent of the Secretary. 

16 (3) TAX STATUS.—The program consortium shall 

17 be an entity that is exempt from tax under section 

18 501(c)(3) of the Internal Revenue Code of 1986. 

19 (4) SCHEDULE.—Not later than 180 days after 

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

21 solicit proposals from eligible consortia to perform the 

22 duties in subsection (c)(1), which shall be submitted 

23 not later than 360 days after the date of enactment 

24 of this Act. The Secretary shall select the program 
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1 consortium not later than 18 months after such date 

2 of enactment. 

3 (5) APPLICATION.—Applicants shall submit a 

4 proposal including such information as the Secretary 

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

6 (A) list all members of the consortium; 

7 (B) fully describe the structure of the con8 sortium, including any provisions relating to in9 tellectual property; and 

10 (C) describe how the applicant would carry 

11 out the activities of the program consortium 

12 under this section. 

13 (6) CRITERION.—The Secretary shall consider 

14 the amount of the fee an applicant proposes to receive 

15 under subsection (g) in selecting a consortium under 

16 this section. 

17 (e) ANNUAL PLAN.— 

18 (1) IN GENERAL.—The program under this sec19 tion shall be carried out pursuant to an annual plan 

20 prepared by the Secretary in accordance with para21 graph (2). 

22 (2) DEVELOPMENT.— 

23 (A) SOLICITATION OF RECOMMENDA24 TIONS.—Before drafting an annual plan under 

25 this subsection, the Secretary shall solicit specific 
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1 written recommendations from the program con2 sortium for each element to be addressed in the 

3 plan, including those described in paragraph (4). 

4 The Secretary may request that the program 

5 consortium submit its recommendations in the 

6 form of a draft annual plan. 

7 (B) SUBMISSION OF RECOMMENDATIONS; 

8 OTHER COMMENT.—The Secretary shall submit 

9 the recommendations of the program consortium 

10 under subparagraph (A) to the Ultra-Deepwater 

11 Advisory Committee established under section 

12 945(a) for review, and such Advisory Committee 

13 shall provide to the Secretary written comments 

14 by a date determined by the Secretary. The Sec15 retary may also solicit comments from any other 

16 experts. 

17 (C) CONSULTATION.—The Secretary shall 

18 consult regularly with the program consortium 

19 throughout the preparation of the annual plan. 

20 (3) PUBLICATION.—The Secretary shall transmit 

21 to Congress and publish in the Federal Register the 

22 annual plan, along with any written comments re23 ceived under paragraph (2)(A) and (B). 
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1 (4) CONTENTS.—The annual plan shall describe 

2 the ongoing and prospective activities of the program 

3 under this section and shall include— 

4 (A) a list of any solicitations for awards 

5 that the Secretary plans to issue to carry out re6 search, development, demonstration, or commer7 cial application activities, including the topics 

8 for such work, who would be eligible to apply, se9 lection criteria, and the duration of awards; and 

10 (B) a description of the activities expected 

11 of the program consortium to carry out sub12 section (f)(4). 

13 (5) ESTIMATES OF INCREASED ROYALTY RE14 CEIPTS.—The Secretary, in consultation with the Sec15 retary of the Interior, shall provide an annual report 

16 to Congress with the President’s budget on the esti17 mated cumulative increase in Federal royalty receipts 

18 (if any) resulting from the implementation of this 

19 part. The initial report under this paragraph shall be 

20 submitted in the first President’s budget following the 

21 completion of the first annual plan required under 

22 this subsection. 

23 (f) AWARDS.— 

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

25 awards to carry out activities under the program 
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1 under this section. The program consortium shall not 

2 be eligible to receive such awards, but members of the 

3 program consortium may receive such awards. 

4 (2) PROPOSALS.—The Secretary shall solicit pro5 posals for awards under this subsection in such man6 ner and at such time as the Secretary may prescribe, 

7 in consultation with the program consortium. 

8 (3) REVIEW.—The Secretary shall make awards 

9 under this subsection through a competitive process, 

10 which shall include a review by individuals selected 

11 by the Secretary. Such individuals shall include, for 

12 each application, Federal officials, the program con13 sortium, and non-Federal experts who are not board 

14 members, officers, or employees of the program consor15 tium or of a member of the program consortium. 

16 (4) OVERSIGHT.— 

17 (A) IN GENERAL.—The program consortium 

18 shall oversee the implementation of awards under 

19 this subsection, consistent with the annual plan 

20 under subsection (e), including disbursing funds 

21 and monitoring activities carried out under such 

22 awards for compliance with the terms and condi23 tions of the awards. 

24 (B) EFFECT.—Nothing in subparagraph 

25 (A) shall limit the authority or responsibility of 
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1 the Secretary to oversee awards, or limit the au2 thority of the Secretary to review or revoke 

3 awards. 

4 (C) PROVISION OF INFORMATION.—The Sec5 retary shall provide to the program consortium 

6 the information necessary for the program con7 sortium to carry out its responsibilities under 

8 this paragraph. 

9 (g) ADMINISTRATIVE COSTS.— 

10 (1) IN GENERAL.—To compensate the program 

11 consortium for carrying out its activities under this 

12 section, the Secretary shall provide to the program 

13 consortium funds sufficient to administer the pro14 gram. This compensation may include a management 

15 fee consistent with Department of Energy contracting 

16 practices and procedures. 

17 (2) ADVANCE.—The Secretary shall advance 

18 funds to the program consortium upon selection of the 

19 consortium, which shall be deducted from amounts to 

20 be provided under paragraph (1). 

21 (h) AUDIT.—The Secretary shall retain an inde22 pendent, commercial auditor to determine the extent to 

23 which funds provided to the program consortium, and funds 

24 provided under awards made under subsection (f), have 

25 been expended in a manner consistent with the purposes 
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1 and requirements of this part. The auditor shall transmit 

2 a report annually to the Secretary, who shall transmit the 

3 report to Congress, along with a plan to remedy any defi4 ciencies cited in the report. 

5 § 943. Unconventional natural gas and other petro6 leum resources Program 

7 (a) IN GENERAL.—The Secretary shall carry out ac8 tivities under subsection 941(b)(3), to maximize the use of 

9 the onshore unconventional natural gas and other petroleum 

10 resources of the United States, by increasing the supply of 

11 such resources, through reducing the cost and increasing the 

12 efficiency of exploration for and production of such re13 sources, while improving safety and minimizing environ14 mental impacts. 

15 (b) AWARDS.— 

16 (1) IN GENERAL.—The Secretary shall carry out 

17 this section through awards to consortia made 

18 through an open, competitive process. As a condition 

19 of award of funds, qualified consortia shall— 

20 (A) demonstrate capability and experience 

21 in unconventional onshore natural gas or other 

22 petroleum technologies; 

23 (B) provide a research plan that dem24 onstrates how additional natural gas or oil pro25 duction will be achieved; and 
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1 (C) at the request of the Secretary, provide 

2 technical advice to the Secretary for the purposes 

3 of developing the annual plan required under 

4 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 360 

14 days after the date of enactment of this Act. The Sec15 retary shall select the first group of research consortia 

16 to receive awards under this subsection not later than 

17 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. 
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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 gas, 

7 innovative exploration and production techniques, en8 hanced recovery techniques, and environmental miti9 gation of unconventional natural gas and other petro10 leum resources exploration and production. 

11 (2) SMALL PRODUCERS.—Awards from alloca12 tions under section 949(d)(3) shall be made to con13 sortia consisting of small producers or organized pri14 marily for the benefit of small producers, and shall 

15 focus on areas including complex geology involving 

16 rapid changes in the type and quality of the oil and 

17 gas reservoirs across the reservoir; low reservoir pres18 sure; unconventional natural gas reservoirs in coal19 beds, deep reservoirs, tight sands, or shales; and un20 conventional oil reservoirs in tar sands and oil shales. 

21 (e) ANNUAL PLAN.— 

22 (1) IN GENERAL.—The program under this sec23 tion shall be carried out pursuant to an annual plan 

24 prepared by the Secretary in accordance with para25 graph (2). 
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1 (2) DEVELOPMENT.— 

2 (A) WRITTEN RECOMMENDATIONS.—Before 

3 drafting an annual plan under this subsection, 

4 the Secretary shall solicit specific written rec5 ommendations from the consortia receiving 

6 awards under subsection (b) and the Unconven7 tional Resources Technology Advisory Committee 

8 for each element to be addressed in the plan, in9 cluding those described in subparagraph (D). 

10 (B) CONSULTATION.—The Secretary shall 

11 consult regularly with the consortia throughout 

12 the preparation of the annual plan. 

13 (C) PUBLICATION.—The Secretary shall 

14 transmit to Congress and publish in the Federal 

15 Register the annual plan, along with any writ16 ten comments received under subparagraph (A). 

17 (D) CONTENTS.—The annual plan shall de18 scribe the ongoing and prospective activities 

19 under this section and shall include a list of any 

20 solicitations for awards that the Secretary plans 

21 to issue to carry out activities, including the top22 ics for such work, who would be eligible to apply, 

23 selection criteria, and the duration of awards. 

24 (3) ESTIMATES OF INCREASED ROYALTY RE25 CEIPTS.—The Secretary, in consultation with the Sec-
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1 retary of the Interior, shall provide an annual report 

2 to Congress with the President’s budget on the esti3 mated cumulative increase in Federal royalty receipts 

4 (if any) resulting from the implementation of this 

5 part. The initial report under this paragraph shall be 

6 submitted in the first President’s budget following the 

7 completion of the first annual plan required under 

8 this subsection. 

9 § 944. Additional requirements for awards 

10 (a) DEMONSTRATION PROJECTS.—An application for 

11 an award under this part for a demonstration project shall 

12 describe with specificity the intended commercial use of the 

13 technology to be demonstrated. 

14 (b) FLEXIBILITY IN LOCATING DEMONSTRATION

15 PROJECTS.—Subject to the limitation in section 941(c), a 

16 demonstration project under this part relating to an ultra17 deepwater technology or an ultra-deepwater architecture 

18 may be conducted in deepwater depths. 

19 (c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 

20 award under this part is made to a consortium (other than 

21 the program consortium), the consortium shall provide to 

22 the Secretary a signed contract agreed to by all members 

23 of the consortium describing the rights of each member to 

24 intellectual property used or developed under the award. 
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1 (d) TECHNOLOGY TRANSFER.—2.5 percent of the 

2 amount of each award made under this part shall be des3 ignated for technology transfer and outreach activities 

4 under this title. 

5 (e) COST SHARING REDUCTION FOR INDEPENDENT

6 PRODUCERS.—In applying the cost sharing requirements 

7 under section 972 to an award under this part the Sec8 retary may reduce or eliminate the non-Federal require9 ment if the Secretary determines that the reduction is nec10 essary and appropriate considering the technological risks 

11 involved in the project. 

12 § 945. Advisory committees 

13 (a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 

14 (1) ESTABLISHMENT.—Not later than 270 days 

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

16 shall establish an advisory committee to be known as 

17 the Ultra-Deepwater Advisory Committee. 

18 (2) MEMBERSHIP.—The advisory committee 

19 under this subsection shall be composed of members 

20 appointed by the Secretary including— 

21 (A) individuals with extensive experience or 

22 operational knowledge of offshore natural gas 

23 and other petroleum exploration and production; 

24 (B) individuals broadly representative of 

25 the affected interests in ultra-deepwater natural 
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1 gas and other petroleum production, including 

2 interests in environmental protection and safe 

3 operations; 

4 (C) no individuals who are Federal employ5 ees; and 

6 (D) no individuals who are board members, 

7 officers, or employees of the program consortium. 

8 (3) DUTIES.—The advisory committee under this 

9 subsection shall— 

10 (A) advise the Secretary on the development 

11 and implementation of programs under this part 

12 related to ultra-deepwater natural gas and other 

13 petroleum resources; and 

14 (B) carry out section 942(e)(2)(B). 

15 (4) COMPENSATION.—A member of the advisory 

16 committee under this subsection shall serve without 

17 compensation but shall receive travel expenses in ac18 cordance with applicable provisions under subchapter 

19 I of chapter 57 of title 5, United States Code. 

20 (b) UNCONVENTIONAL RESOURCES TECHNOLOGY AD21 VISORY COMMITTEE.— 

22 (1) ESTABLISHMENT.—Not later than 270 days 

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

24 shall establish an advisory committee to be known as 
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1 the Unconventional Resources Technology Advisory 

2 Committee. 

3 (2) MEMBERSHIP.—The advisory committee 

4 under this subsection shall be composed of members 

5 appointed by the Secretary including— 

6 (A) a majority of members who are employ7 ees or representatives of independent producers of 

8 natural gas and other petroleum, including 

9 small producers; 

10 (B) individuals with extensive research ex11 perience or operational knowledge of unconven12 tional natural gas and other petroleum resource 

13 exploration and production; 

14 (C) individuals broadly representative of 

15 the affected interests in unconventional natural 

16 gas and other petroleum resource exploration 

17 and production, including interests in environ18 mental protection and safe operations; and 

19 (D) no individuals who are Federal employ20 ees. 

21 (3) DUTIES.—The advisory committee under this 

22 subsection shall advise the Secretary on the develop23 ment and implementation of activities under this 

24 part related to unconventional natural gas and other 

25 petroleum resources. 
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1 (4) COMPENSATION.—A member of the advisory 

2 committee under this subsection shall serve without 

3 compensation but shall receive travel expenses in ac4 cordance with applicable provisions under subchapter 

5 I of chapter 57 of title 5, United States Code. 

6 (c) PROHIBITION.—No advisory committee established 

7 under this section shall make recommendations on funding 

8 awards to particular consortia or other entities, or for spe9 cific projects. 

10 § 946. Limits on participation 

11 An entity shall be eligible to receive an award under 

12 this part only if the Secretary finds— 

13 (1) that the entity’s participation in the pro14 gram under this part would be in the economic inter15 est of the United States; and 

16 (2) that either— 

17 (A) the entity is a United States-owned en18 tity organized under the laws of the United 

19 States; or 

20 (B) the entity is organized under the laws 

21 of the United States and has a parent entity or22 ganized under the laws of a country that af23 fords— 

24 (i) to United States-owned entities op25 portunities, comparable to those afforded to 
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1 any other entity, to participate in any co2 operative research venture similar to those 

3 authorized under this part; 

4 (ii) to United States-owned entities 

5 local investment opportunities comparable 

6 to those afforded to any other entity; and 

7 (iii) adequate and effective protection 

8 for the intellectual property rights of United 

9 States-owned entities. 

10 § 947. Sunset 

11 The authority provided by this part shall terminate 

12 on September 30, 2014. 

13 § 948. Definitions 

14 In this part: 

15 (1) DEEPWATER.—The term ‘‘deepwater’’ means 

16 a water depth that is greater than 200 but less than 

17 1,500 meters. 

18 (2) INDEPENDENT PRODUCER OF OIL OR GAS.— 

19 (A) IN GENERAL.—The term ‘‘independent 

20 producer of oil or gas’’ means any person that 

21 produces oil or gas other than a person to whom 

22 subsection (c) of section 613A of the Internal 

23 Revenue Code of 1986 does not apply by reason 

24 of paragraph (2) (relating to certain retailers) or 
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1 paragraph (4) (relating to certain refiners) of 

2 section 613A(d) of such Code. 

3 (B) RULES FOR APPLYING PARAGRAPHS (2)

4 AND (4)OF SECTION 613A(d).—For purposes of 

5 subparagraph (A), paragraphs (2) and (4) of 

6 section 613A(d) of the Internal Revenue Code of 

7 1986 shall be applied by substituting ‘‘calendar 

8 year’’ for ‘‘taxable year’’ each place it appears in 

9 such paragraphs. 

10 (3) PROGRAM CONSORTIUM.—The term ‘‘pro11 gram consortium’’ means the consortium selected 

12 under section 942(d). 

13 (4) REMOTE OR INCONSEQUENTIAL.—The term 

14 ‘‘remote or inconsequential’’ has the meaning given 

15 that term in regulations issued by the Office of Gov16 ernment Ethics under section 208(b)(2) of title 18, 

17 United States Code. 

18 (5) SMALL PRODUCER.—The term ‘‘small pro19 ducer’’ means an entity organized under the laws of 

20 the United States with production levels of less than 

21 1,000 barrels per day of oil equivalent. 

22 (6) ULTRA-DEEPWATER.—The term ‘‘ultra-deep23 water’’ means a water depth that is equal to or great24 er than 1,500 meters. 
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1 (7) ULTRA-DEEPWATER ARCHITECTURE.—The 

2 term ‘‘ultra-deepwater architecture’’ means the inte3 gration of technologies for the exploration for, or pro4 duction of, natural gas or other petroleum resources 

5 located at ultra-deepwater depths. 

6 (8) ULTRA-DEEPWATER TECHNOLOGY.—The term 

7 ‘‘ultra-deepwater technology’’ means a discrete tech8 nology that is specially suited to address 1 or more 

9 challenges associated with the exploration for, or pro10 duction of, natural gas or other petroleum resources 

11 located at ultra-deepwater depths. 

12 (9) UNCONVENTIONAL NATURAL GAS AND OTHER

13 PETROLEUM RESOURCE.—The term ‘‘unconventional 

14 natural gas and other petroleum resource’’ means nat15 ural gas and other petroleum resource located onshore 

16 in an economically inaccessible geological formation, 

17 including resources of small producers. 

18 § 949. Funding 

19 (a) IN GENERAL.— 

20 (1) OIL AND GAS LEASE INCOME.—For each of 

21 fiscal years 2005 through 2014, from any Federal 

22 royalties, rents, and bonuses derived from Federal on23 shore and offshore oil and gas leases issued under the 

24 Outer Continental Shelf Lands Act and the Mineral 

25 Leasing Act which are deposited in the Treasury, and 
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1 after distribution of any such funds as described in 

2 subsection (c), $50,000,000 shall be deposited into the 

3 Ultra-Deepwater and Unconventional Natural Gas 

4 and Other Petroleum Research Fund (in this section 

5 referred to as the Fund). For purposes of this section, 

6 the term ‘‘royalties’’ excludes proceeds from the sale of 

7 royalty production taken in kind and royalty produc8 tion that is transferred under section 27(a)(3) of the 

9 Outer Continental Shelf Lands Act (43 U.S.C. 

10 1353(a)(3)). 

11 (2) AUTHORIZATION OF APPROPRIATIONS.—In 

12 addition to amounts described in paragraph (1), there 

13 are authorized to be appropriated to the Secretary, to 

14 be deposited in the Fund, $150,000,000 for each of the 

15 fiscal years 2005 through 2014, to remain available 

16 until expended. 

17 (b) OBLIGATIONAL AUTHORITY.—Monies in the Fund 

18 shall be available to the Secretary for obligation under this 

19 part without fiscal year limitation, to remain available 

20 until expended. 

21 (c) PRIOR DISTRIBUTIONS.—The distributions de22 scribed in subsection (a) are those required by law— 

23 (1) to States and to the Reclamation Fund under 

24 the Mineral Leasing Act (30 U.S.C. 191(a)); and 
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1 (2) to other funds receiving monies from Federal 

2 oil and gas leasing programs, including— 

3 (A) any recipients pursuant to section 8(g) 

4 of the Outer Continental Shelf Lands Act (43 

5 U.S.C. 1337(g)); 

6 (B) the Land and Water Conservation 

7 Fund, pursuant to section 2(c) of the Land and 

8 Water Conservation Fund Act of 1965 (16 

9 U.S.C. 4601–5(c)); 

10 (C) the Historic Preservation Fund, pursu11 ant to section 108 of the National Historic Pres12 ervation Act (16 U.S.C. 470h); and 

13 (D) the Secure Energy Reinvestment Fund. 

14 (d) ALLOCATION.—Amounts obligated from the Fund 

15 under this section in each fiscal year shall be allocated as 

16 follows: 

17 (1) 50 percent shall be for activities under sec18 tion 942. 

19 (2) 35 percent shall be for activities under sec20 tion 943(d)(1). 

21 (3) 10 percent shall be for activities under sec22 tion 943(d)(2). 

23 (4) 5 percent shall be for research under section 

24 941(d). 
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1 (e) FUND.—There is hereby established in the Treasury 

2 of the United States a separate fund to be known as the 

3 ‘‘Ultra-Deepwater and Unconventional Natural Gas and 

4 Other Petroleum Research Fund’’. 

5 Subtitle F—Energy Sciences 

6 § 953. Plan for Fusion Energy Sciences Program 

7 (a) DECLARATION OF POLICY.—It shall be the policy 

8 of the United States to conduct a program of activities to 

9 ensure that the United States is competitive with other na10 tions in providing fusion energy for its own needs and the 

11 needs of other nations. 

12 (b) PLANNING.— 

13 (1) IN GENERAL.—Not later than 180 days after 

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

15 present to Congress a plan, with proposed cost esti16 mates, budgets, and potential international partners, 

17 for the implementation of the policy described in sub18 section (a). 

19 (2) COSTS AND SCHEDULES.—Such plan shall 

20 also address the status of and, to the degree possible, 

21 costs and schedules for— 

22 (A) the design and implementation of inter23 national or national facilities for the testing of 

24 fusion materials; and 
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1 (B) the design and implementation of inter2 national or national facilities for the testing and 

3 development of key fusion technologies. 

4 § 954. Spallation Neutron Source 

5 (a) DEFINITION.—For the purposes of this section, the 

6 term ‘‘Spallation Neutron Source’’ means Department 

7 Project 99–E–334, Oak Ridge National Laboratory, Oak 

8 Ridge, Tennessee. 

9 (b) REPORT.—The Secretary shall report on the Spall10 ation Neutron Source as part of the Department’s annual 

11 budget submission, including a description of the achieve12 ment of milestones, a comparison of actual costs to esti13 mated costs, and any changes in estimated project costs or 

14 schedule. 

15 (c) LIMITATIONS.—The total amount obligated by the 

16 Department, including prior year appropriations, for the 

17 Spallation Neutron Source shall not exceed— 

18 (1) $1,192,700,000 for costs of construction; 

19 (2) $219,000,000 for other project costs; and 

20 (3) $1,411,700,000 for total project cost. 

21 § 962. Nitrogen fixation 

22 The Secretary shall conduct studies on biological nitro23 gen fixation, including plant genomics research relevant to 

24 the development of commercial crop varieties with enhanced 

25 nitrogen fixation efficiency and ability. 
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1 Subtitle G—Energy and Environment 

2 § 966. Waste reduction and use of alternatives 

3 (a) GRANT AUTHORITY.—The Secretary may make a 

4 single grant to a qualified institution to examine burning 

5 post-consumer carpet in cement kilns as an alternative en6 ergy source. The purposes of the grant shall include deter7 mining— 

8 (1) how post-consumer carpet can be burned 

9 without disrupting kiln operations; 

10 (2) the extent to which overall kiln emissions 

11 may be reduced; 

12 (3) the emissions of air pollutants and other rel13 evant environmental impacts; and 

14 (4) how this process provides benefits to both ce15 ment kiln operations and carpet suppliers. 

16 (b) QUALIFIED INSTITUTION.—For the purposes of 

17 subsection (a), a qualified institution is an institution of 

18 higher education with demonstrated expertise in the fields 

19 of fiber recycling and logistical modeling of carpet waste 

20 collection and preparation. 

21 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

22 authorized to be appropriated to the Secretary for carrying 

23 out this section $500,000. 

24 § 967. Report on fuel cell test center 

25 (a) REPORT.—Not later than 1 year after the date of 

26 enactment of this Act, the Secretary shall transmit to Con-
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1 gress a report on the results of a study of the establishment 

2 of a test center for next-generation fuel cells at an institu3 tion of higher education that has available a continuous 

4 source of hydrogen and access to the electric transmission 

5 grid. Such report shall include a conceptual design for such 

6 test center and a projection of the costs of establishing the 

7 test center. 

8 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

9 authorized to be appropriated to the Secretary for carrying 

10 out this section $500,000. 

11 § 968. Arctic Engineering Research Center 

12 (a) IN GENERAL.—The Secretary of Energy (referred 

13 to in this section as the ‘‘Secretary’’) in consultation with 

14 the Secretary of Transportation and the United States Arc15 tic Research Commission shall provide annual grants to a 

16 university located adjacent to the Arctic Energy Office of 

17 the Department of Energy, to establish and operate a uni18 versity research center to be headquartered in Fairbanks 

19 and to be known as the ‘‘Arctic Engineering Research Cen20 ter’’ (referred to in this section as the ‘‘Center’’). 

21 (b) PURPOSE.—The purpose of the Center shall be to 

22 conduct research on, and develop improved methods of, con23 struction and use of materials to improve the overall per24 formance of roads, bridges, residential, commercial, and in-
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1 dustrial structures, and other infrastructure in the Arctic 

2 region, with an emphasis on developing— 

3 (1) new construction techniques for roads, 

4 bridges, rail, and related transportation infrastruc5 ture and residential, commercial, and industrial in6 frastructure that are capable of withstanding the Arc7 tic environment and using limited energy resources as 

8 efficiently as possible; 

9 (2) technologies and procedures for increasing 

10 road, bridge, rail, and related transportation infra11 structure and residential, commercial, and industrial 

12 infrastructure safety, reliability, and integrity in the 

13 Arctic region; 

14 (3) new materials and improving the perform15 ance and energy efficiency of existing materials for 

16 the construction of roads, bridges, rail, and related 

17 transportation infrastructure and residential, com18 mercial, and industrial infrastructure in the Arctic 

19 region; and 

20 (4) recommendations for new local, regional, and 

21 State permitting and building codes to ensure trans22 portation and building safety and efficient energy use 

23 when constructing, using, and occupying such infra24 structure in the Arctic region. 

25 (c) OBJECTIVES.—The Center shall carry out— 
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1 (1) basic and applied research in the subjects de2 scribed in subsection (b), the products of which shall 

3 be judged by peers or other experts in the field to ad4 vance the body of knowledge in road, bridge, rail, and 

5 infrastructure engineering in the Arctic region; and 

6 (2) an ongoing program of technology transfer 

7 that makes research results available to potential 

8 users in a form that can be implemented. 

9 (d) AMOUNT OF GRANT.—For each of fiscal years 2005 

10 through 2010, the Secretary shall provide a grant in the 

11 amount of $3,000,000 to the institution specified in sub12 section (a) to carry out this section. 

13 (e) AUTHORIZATION OF APPROPRIATIONS.—There are 

14 authorized to be appropriated to carry out this section 

15 $3,000,000 for each of fiscal years 2005 through 2010. 

16 § 970. Western Michigan demonstration project 

17 The Administrator of the Environmental Protection 

18 Agency, in consultation with the State of Michigan and af19 fected local officials, shall conduct a demonstration project 

20 to address the effect of transported ozone and ozone precur21 sors in Southwestern Michigan. The demonstration pro22 gram shall address projected nonattainment areas in South23 western Michigan that include counties with design values 

24 for ozone of less than .095 based on years 2000 to 2002 

25 or the most current 3-year period of air quality data. The 
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1 Administrator shall assess any difficulties such areas may 

2 experience in meeting the 8 hour national ambient air qual3 ity standard for ozone due to the effect of transported ozone 

4 or ozone precursors into the areas. The Administrator shall 

5 work with State and local officials to determine the extent 

6 of ozone and ozone precursor transport, to assess alter7 natives to achieve compliance with the 8 hour standard 

8 apart from local controls, and to determine the timeframe 

9 in which such compliance could take place. The Adminis10 trator shall complete this demonstration project no later 

11 than 2 years after the date of enactment of this section and 

12 shall not impose any requirement or sanction that might 

13 otherwise apply during the pendency of the demonstration 

14 project. 

15 § 971. Low-cost hydrogen propulsion and infrastruc16 ture 

17 (a) PROGRAM.—The Secretary of Energy shall— 

18 (1) establish a program with respect to the feasi19 bility of using hydrogen propulsion in light-weight 

20 vehicles and the integration of the associated hydrogen 

21 production infrastructure using off-the-shelf compo22 nents; and 

23 (2) identify universities and institutions that— 
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1 (A) have expertise in operating and testing 

2 vehicles fueled by hydrogen, methane, and other 

3 fuels; 

4 (B) have expertise in integrating off-the5 shelf components to minimize cost; and 

6 (C) within two years can test a vehicle 

7 based on an existing commercially available 

8 platform with a curb weight of not less than 

9 2,000 pounds before modifications, that— 

10 (i) operates solely on hydrogen gas; 

11 (ii) can travel a minimum of 300 

12 miles under normal road conditions; and 

13 (iii) uses hydrogen produced from 

14 water using only solar energy. 

15 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

16 authorized to be appropriated to the Secretary of Energy 

17 for carrying out this section $200,000 for fiscal year 2006. 

18 Such sums shall remain available until expended. 

19 § 972. Carbon-based fuel cell development 

20 (a) GRANT AUTHORITY.—The Secretary of Energy is 

21 authorized to make a single grant to a qualified institution 

22 to design and fabricate a 5-kilowatt prototype coal-based 

23 fuel cell with the following performance objectives: 

24 (1) A current density of 600 milliamps per 

25 square centimeter at a cell voltage of 0.8 volts. 
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1 (2) An operating temperature range not to ex2 ceed 900 degrees celsius. 

3 (b) QUALIFIED INSTITUTION.—For the purposes of 

4 subsection (a), a qualified institution is a research-intensive 

5 institution of higher education with demonstrated expertise 

6 in the development of carbon-based fuel cells allowing the 

7 direct use of high sulfur content coal as fuel, and which 

8 has produced a laboratory-scale carbon-based fuel cell with 

9 a proven current density of 100 milliamps per square centi10 meter at a voltage of 0.6 volts. 

11 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

12 authorized to be appropriated to the Secretary of Energy 

13 for carrying out this section $850,000 for fiscal year 2006. 

14 Subtitle H—International Cooperation 

15 § 981. United States-Israel cooperation 

16 (a) FINDINGS.—The Congress finds that— 

17 (1) on February 1, 1996, United States Sec18 retary of Energy Hazel R. O’Leary and Israeli Min19 ister of Energy and Infrastructure Gonen Segev 

20 signed the Agreement between the Department of En21 ergy of the United States of America and the Min22 istry of Energy and Infrastructure of Israel Con23 cerning Energy Cooperation, to establish a framework 

24 for collaboration between the United States and Israel 

25 in energy research and development activities; 
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1 (2) the Agreement entered into force in February 

2 2000; 

3 (3) in February 2005, the Agreement was auto4 matically renewed for one additional 5-year period 

5 pursuant to Article X of the Agreement; and 

6 (4) under the Agreement, the United States and 

7 Israel may cooperate in energy research and develop8 ment in a variety of alternative and advanced energy 

9 sectors. 

10 (b) REPORT TO CONGRESS.—(1) The Secretary of En11 ergy shall report to the Committee on Energy and Com12 merce of the House of Representatives and the Committee 

13 on Energy and Natural Resources of the Senate on— 

14 (A) how the United States and Israel have co15 operated on energy research and development activi16 ties under the Agreement; 

17 (B) projects initiated pursuant to the Agreement; 

18 and 

19 (C) plans for future cooperation and joint 

20 projects under the Agreement. 

21 (2) The report shall be submitted no later than three 

22 months after the date of enactment of this Act. 

23 (c) SENSE OF CONGRESS.—It is the sense of the Con24 gress that energy cooperation between the Governments of 
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1 the United States and Israel is mutually beneficial in the 

2 development of energy technology. 

3 TITLE X—DEPARTMENT OF 

4 ENERGY MANAGEMENT 

5 § 1001. Additional Assistant Secretary position 

6 (a) ADDITIONAL ASSISTANT SECRETARY POSITION TO

7 ENABLE IMPROVED MANAGEMENT OF NUCLEAR ENERGY

8 ISSUES.— 

9 (1) IN GENERAL.—Section 203(a) of the Depart10 ment of Energy Organization Act (42 U.S.C. 

11 7133(a)) is amended by striking ‘‘six Assistant Secre12 taries’’ and inserting ‘‘7 Assistant Secretaries’’. 

13 (2) SENSE OF CONGRESS.—It is the sense of 

14 Congress that the leadership for departmental mis15 sions in nuclear energy should be at the Assistant 

16 Secretary level. 

17 (b) TECHNICAL AND CONFORMING AMENDMENTS.— 

18 (1) TITLE 5.—Section 5315 of title 5, United 

19 States Code, is amended by striking ‘‘Assistant Secre20 taries of Energy (6)’’ and inserting ‘‘Assistant Secre21 taries of Energy (7)’’. 

22 (2) DEPARTMENT OF ENERGY ORGANIZATION

23 ACT.—The table of contents for the Department of En24 ergy Organization Act (42 U.S.C. 7101 note) is 

25 amended— 
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1 (A) by striking ‘‘Section 209’’ and inserting 

2 ‘‘Sec. 209’’; 

3 (B) by striking ‘‘213.’’ and inserting ‘‘Sec. 

4 213.’’; 

5 (C) by striking ‘‘214.’’ and inserting ‘‘Sec. 

6 214.’’; 

7 (D) by striking ‘‘215.’’ and inserting ‘‘Sec. 

8 215.’’; and 

9 (E) by striking ‘‘216.’’ and inserting ‘‘Sec. 

10 216.’’. 

11 § 1002. Other transactions authority 

12 Section 646 of the Department of Energy Organization 

13 Act (42 U.S.C. 7256) is amended by adding at the end the 

14 following: 

15 ‘‘(g)(1) In addition to other authorities granted to the 

16 Secretary under law, the Secretary may enter into other 

17 transactions on such terms as the Secretary may deem ap18 propriate in furtherance of research, development, or dem19 onstration functions vested in the Secretary. Such other 

20 transactions shall not be subject to the provisions of section 

21 9 of the Federal Nonnuclear Energy Research and Develop22 ment Act of 1974 (42 U.S.C. 5908) or section 152 of the 

23 Atomic Energy Act of 1954 (42 U.S.C. 2182). 

24 ‘‘(2)(A) The Secretary shall ensure that— 
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1 ‘‘(i) to the maximum extent the Secretary deter2 mines practicable, no transaction entered into under 

3 paragraph (1) provides for research, development, or 

4 demonstration that duplicates research, development, 

5 or demonstration being conducted under existing 

6 projects carried out by the Department; 

7 ‘‘(ii) to the extent the Secretary determines prac8 ticable, the funds provided by the Government under 

9 a transaction authorized by paragraph (1) do not ex10 ceed the total amount provided by other parties to the 

11 transaction; and 

12 ‘‘(iii) to the extent the Secretary determines 

13 practicable, competitive, merit-based selection proce14 dures shall be used when entering into transactions 

15 under paragraph (1). 

16 ‘‘(B) A transaction authorized by paragraph (1) may 

17 be used for a research, development, or demonstration 

18 project only if the Secretary makes a written determination 

19 that the use of a standard contract, grant, or cooperative 

20 agreement for the project is not feasible or appropriate. 

21 ‘‘(3)(A) The Secretary shall protect from disclosure, in22 cluding disclosure under section 552 of title 5, United 

23 States Code, for up to 5 years after the date the information 

24 is received by the Secretary— 
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1 ‘‘(i) a proposal, proposal abstract, and sup2 porting documents submitted to the Department in a 

3 competitive or noncompetitive process having the po4 tential for resulting in an award under paragraph 

5 (1) to the party submitting the information; and 

6 ‘‘(ii) a business plan and technical information 

7 relating to a transaction authorized by paragraph (1) 

8 submitted to the Department as confidential business 

9 information. 

10 ‘‘(B) The Secretary may protect from disclosure, for 

11 up to 5 years after the information was developed, any in12 formation developed pursuant to a transaction under para13 graph (1) which developed information is of a character 

14 that it would be protected from disclosure under section 

15 552(b)(4) of title 5, United States Code, if obtained from 

16 a person other than a Federal agency. 

17 ‘‘(4) Not later than 90 days after the date of enactment 

18 of this subsection, the Secretary shall prescribe guidelines 

19 for using other transactions authorized by paragraph (1). 

20 Such guidelines shall be published in the Federal Register 

21 for public comment under rulemaking procedures of the De22 partment. 

23 ‘‘(5) The authority of the Secretary under this sub24 section may be delegated only to an officer of the Depart25 ment who is appointed by the President by and with the 
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1 advice and consent of the Senate and may not be delegated 

2 to any other person. 

3 ‘‘(6)(A) Not later than September 31, 2006, the Comp4 troller General of the United States shall report to Congress 

5 on the Department’s use of the authorities granted under 

6 this section, including the ability to attract nontraditional 

7 government contractors and whether additional safeguards 

8 are needed with respect to the use of such authorities. 

9 ‘‘(B) In this section, the term ‘nontraditional Govern10 ment contractor’ has the same meaning as the term ‘non11 traditional defense contractor’ as defined in section 845(e) 

12 of the National Defense Authorization Act for Fiscal Year 

13 1994 (Public Law 103–160; 10 U.S.C. 2371 note).’’. 

14 § 1003. University collaboration 

15 Not later than 2 years after the date of enactment of 

16 this Act, the Secretary of Energy shall transmit to the Con17 gress a report that examines the feasibility of promoting 

18 collaborations between major universities and other colleges 

19 and universities in grants, contracts, and cooperative agree20 ments made by the Secretary for energy projects. For pur21 poses of this section, major universities are schools listed 

22 by the Carnegie Foundation as Doctoral Research Extensive 

23 Universities. The Secretary shall also consider providing 

24 incentives to increase the inclusion of small institutions of 
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1 higher education, including minority-serving institutions, 

2 in energy grants, contracts, and cooperative agreements. 

3 § 1004. Sense of Congress 

4 It is the sense of the Congress that— 

5 (1) the Secretary of Energy should develop and 

6 implement more stringent procurement and inventory 

7 controls, including controls on the purchase card pro8 gram, to prevent waste, fraud, and abuse of taxpayer 

9 funds by employees and contractors of the Department 

10 of Energy; and 

11 (2) the Department’s Inspector General should 

12 continue to closely review purchase card purchases 

13 and other procurement and inventory practices at the 

14 Department. 

15 TITLE XII—ELECTRICITY 

16 § 1201. Short title 

17 This title may be cited as the ‘‘Electric Reliability Act 

18 of 2005’’. 

19 Subtitle A—Reliability Standards 

20 § 1211. Electric reliability standards 

21 (a) IN GENERAL.—Part II of the Federal Power Act 

22 (16 U.S.C 824 et seq.) is amended by adding at the end 

23 the following: 

24 ‘‘SEC. 215. ELECTRIC RELIABILITY. 

25 ‘‘(a) DEFINITIONS.—For purposes of this section: 
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1 ‘‘(1) The term ‘bulk-power system’ means— 

2 ‘‘(A) facilities and control systems necessary 

3 for operating an interconnected electric energy 

4 transmission network (or any portion thereof); 

5 and 

6 ‘‘(B) electric energy from generation facili7 ties needed to maintain transmission system re8 liability. 

9 The term does not include facilities used in the local 

10 distribution of electric energy. 

11 ‘‘(2) The terms ‘Electric Reliability Organiza12 tion’ and ‘ERO’ mean the organization certified by 

13 the Commission under subsection (c) the purpose of 

14 which is to establish and enforce reliability standards 

15 for the bulk-power system, subject to Commission re16 view. 

17 ‘‘(3) The term ‘reliability standard’ means a re18 quirement, approved by the Commission under this 

19 section, to provide for reliable operation of the bulk20 power system. The term includes requirements for the 

21 operation of existing bulk-power system facilities, in22 cluding cybersecurity protection, and the design of 

23 planned additions or modifications to such facilities 

24 to the extent necessary to provide for reliable oper25 ation of the bulk-power system, but the term does not 
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1 include any requirement to enlarge such facilities or 

2 to construct new transmission capacity or generation 

3 capacity. 

4 ‘‘(4) The term ‘reliable operation’ means oper5 ating the elements of the bulk-power system within 

6 equipment and electric system thermal, voltage, and 

7 stability limits so that instability, uncontrolled sepa8 ration, or cascading failures of such system will not 

9 occur as a result of a sudden disturbance, including 

10 a cybersecurity incident, or unanticipated failure of 

11 system elements. 

12 ‘‘(5) The term ‘Interconnection’ means a geo13 graphic area in which the operation of bulk-power 

14 system components is synchronized such that the fail15 ure of 1 or more of such components may adversely 

16 affect the ability of the operators of other components 

17 within the system to maintain reliable operation of 

18 the facilities within their control. 

19 ‘‘(6) The term ‘transmission organization’ means 

20 a Regional Transmission Organization, Independent 

21 System Operator, independent transmission provider, 

22 or other transmission organization finally approved 

23 by the Commission for the operation of transmission 

24 facilities. 
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1 ‘‘(7) The term ‘regional entity’ means an entity 

2 having enforcement authority pursuant to subsection 

3 (e)(4). 

4 ‘‘(8) The term ‘cybersecurity incident’ means a 

5 malicious act or suspicious event that disrupts, or 

6 was an attempt to disrupt, the operation of those pro7 grammable electronic devices and communication net8 works including hardware, software and data that are 

9 essential to the reliable operation of the bulk power 

10 system. 

11 ‘‘(b) JURISDICTION AND APPLICABILITY.—(1) The 

12 Commission shall have jurisdiction, within the United 

13 States, over the ERO certified by the Commission under 

14 subsection (c), any regional entities, and all users, owners 

15 and operators of the bulk-power system, including but not 

16 limited to the entities described in section 201(f), for pur17 poses of approving reliability standards established under 

18 this section and enforcing compliance with this section. All 

19 users, owners and operators of the bulk-power system shall 

20 comply with reliability standards that take effect under this 

21 section. 

22 ‘‘(2) The Commission shall issue a final rule to imple23 ment the requirements of this section not later than 180 

24 days after the date of enactment of this section. 
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1 ‘‘(c) CERTIFICATION.—Following the issuance of a 

2 Commission rule under subsection (b)(2), any person may 

3 submit an application to the Commission for certification 

4 as the Electric Reliability Organization. The Commission 

5 may certify 1 such ERO if the Commission determines that 

6 such ERO— 

7 ‘‘(1) has the ability to develop and enforce, sub8 ject to subsection (e)(2), reliability standards that 

9 provide for an adequate level of reliability of the bulk10 power system; and 

11 ‘‘(2) has established rules that— 

12 ‘‘(A) assure its independence of the users 

13 and owners and operators of the bulk-power sys14 tem, while assuring fair stakeholder representa15 tion in the selection of its directors and balanced 

16 decisionmaking in any ERO committee or subor17 dinate organizational structure; 

18 ‘‘(B) allocate equitably reasonable dues, fees, 

19 and other charges among end users for all activi20 ties under this section; 

21 ‘‘(C) provide fair and impartial procedures 

22 for enforcement of reliability standards through 

23 the imposition of penalties in accordance with 

24 subsection (e) (including limitations on activi-
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1 ties, functions, or operations, or other appro2 priate sanctions); 

3 ‘‘(D) provide for reasonable notice and op4 portunity for public comment, due process, open5 ness, and balance of interests in developing reli6 ability standards and otherwise exercising its 

7 duties; and 

8 ‘‘(E) provide for taking, after certification, 

9 appropriate steps to gain recognition in Canada 

10 and Mexico. 

11 The total amount of all dues, fees, and other charges 

12 collected by the ERO in each of the fiscal years 2006 

13 through 2015 and allocated under subparagraph (B) 

14 shall not exceed $50,000,000. 

15 ‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reli16 ability Organization shall file each reliability standard or 

17 modification to a reliability standard that it proposes to 

18 be made effective under this section with the Commission. 

19 ‘‘(2) The Commission may approve, by rule or order, 

20 a proposed reliability standard or modification to a reli21 ability standard if it determines that the standard is just, 

22 reasonable, not unduly discriminatory or preferential, and 

23 in the public interest. The Commission shall give due weight 

24 to the technical expertise of the Electric Reliability Organi25 zation with respect to the content of a proposed standard 
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1 or modification to a reliability standard and to the tech2 nical expertise of a regional entity organized on an Inter3 connection-wide basis with respect to a reliability standard 

4 to be applicable within that Interconnection, but shall not 

5 defer with respect to the effect of a standard on competition. 

6 A proposed standard or modification shall take effect upon 

7 approval by the Commission. 

8 ‘‘(3) The Electric Reliability Organization shall 

9 rebuttably presume that a proposal from a regional entity 

10 organized on an Interconnection-wide basis for a reliability 

11 standard or modification to a reliability standard to be ap12 plicable on an Interconnection-wide basis is just, reason13 able, and not unduly discriminatory or preferential, and 

14 in the public interest. 

15 ‘‘(4) The Commission shall remand to the Electric Re16 liability Organization for further consideration a proposed 

17 reliability standard or a modification to a reliability stand18 ard that the Commission disapproves in whole or in part. 

19 ‘‘(5) The Commission, upon its own motion or upon 

20 complaint, may order the Electric Reliability Organization 

21 to submit to the Commission a proposed reliability stand22 ard or a modification to a reliability standard that address23 es a specific matter if the Commission considers such a new 

24 or modified reliability standard appropriate to carry out 

25 this section. 
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1 ‘‘(6) The final rule adopted under subsection (b)(2) 

2 shall include fair processes for the identification and timely 

3 resolution of any conflict between a reliability standard and 

4 any function, rule, order, tariff, rate schedule, or agreement 

5 accepted, approved, or ordered by the Commission applica6 ble to a transmission organization. Such transmission orga7 nization shall continue to comply with such function, rule, 

8 order, tariff, rate schedule or agreement accepted approved, 

9 or ordered by the Commission until— 

10 ‘‘(A) the Commission finds a conflict exists be11 tween a reliability standard and any such provision; 

12 ‘‘(B) the Commission orders a change to such 

13 provision pursuant to section 206 of this part; and 

14 ‘‘(C) the ordered change becomes effective under 

15 this part. 

16 If the Commission determines that a reliability standard 

17 needs to be changed as a result of such a conflict, it shall 

18 order the ERO to develop and file with the Commission a 

19 modified reliability standard under paragraph (4) or (5) 

20 of this subsection. 

21 ‘‘(e) ENFORCEMENT.—(1) The ERO may impose, sub22 ject to paragraph (2), a penalty on a user or owner or oper23 ator of the bulk-power system for a violation of a reliability 

24 standard approved by the Commission under subsection (d) 

25 if the ERO, after notice and an opportunity for a hearing— 
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1 ‘‘(A) finds that the user or owner or operator has 

2 violated a reliability standard approved by the Com3 mission under subsection (d); and 

4 ‘‘(B) files notice and the record of the proceeding 

5 with the Commission. 

6 ‘‘(2) A penalty imposed under paragraph (1) may take 

7 effect not earlier than the 31st day after the ERO files with 

8 the Commission notice of the penalty and the record of pro9 ceedings. Such penalty shall be subject to review by the 

10 Commission, on its own motion or upon application by the 

11 user, owner or operator that is the subject of the penalty 

12 filed within 30 days after the date such notice is filed with 

13 the Commission. Application to the Commission for review, 

14 or the initiation of review by the Commission on its own 

15 motion, shall not operate as a stay of such penalty unless 

16 the Commission otherwise orders upon its own motion or 

17 upon application by the user, owner or operator that is the 

18 subject of such penalty. In any proceeding to review a pen19 alty imposed under paragraph (1), the Commission, after 

20 notice and opportunity for hearing (which hearing may 

21 consist solely of the record before the ERO and opportunity 

22 for the presentation of supporting reasons to affirm, modify, 

23 or set aside the penalty), shall by order affirm, set aside, 

24 reinstate, or modify the penalty, and, if appropriate, re-
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1 mand to the ERO for further proceedings. The Commission 

2 shall implement expedited procedures for such hearings. 

3 ‘‘(3) On its own motion or upon complaint, the Com4 mission may order compliance with a reliability standard 

5 and may impose a penalty against a user or owner or oper6 ator of the bulk-power system if the Commission finds, after 

7 notice and opportunity for a hearing, that the user or owner 

8 or operator of the bulk-power system has engaged or is about 

9 to engage in any acts or practices that constitute or will 

10 constitute a violation of a reliability standard. 

11 ‘‘(4) The Commission shall issue regulations author12 izing the ERO to enter into an agreement to delegate au13 thority to a regional entity for the purpose of proposing 

14 reliability standards to the ERO and enforcing reliability 

15 standards under paragraph (1) if— 

16 ‘‘(A) the regional entity is governed by— 

17 ‘‘(i) an independent board; 

18 ‘‘(ii) a balanced stakeholder board; or 

19 ‘‘(iii) a combination independent and bal20 anced stakeholder board. 

21 ‘‘(B) the regional entity otherwise satisfies the 

22 provisions of subsection (c)(1) and (2); and 

23 ‘‘(C) the agreement promotes effective and effi24 cient administration of bulk-power system reliability. 
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1 The Commission may modify such delegation. The ERO 

2 and the Commission shall rebuttably presume that a pro3 posal for delegation to a regional entity organized on an 

4 Interconnection-wide basis promotes effective and efficient 

5 administration of bulk-power system reliability and should 

6 be approved. Such regulation may provide that the Com7 mission may assign the ERO’s authority to enforce reli8 ability standards under paragraph (1) directly to a re9 gional entity consistent with the requirements of this para10 graph. 

11 ‘‘(5) The Commission may take such action as is nec12 essary or appropriate against the ERO or a regional entity 

13 to ensure compliance with a reliability standard or any 

14 Commission order affecting the ERO or a regional entity. 

15 ‘‘(6) Any penalty imposed under this section shall bear 

16 a reasonable relation to the seriousness of the violation and 

17 shall take into consideration the efforts of such user, owner, 

18 or operator to remedy the violation in a timely manner. 

19 ‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA20 TION RULES.—The Electric Reliability Organization shall 

21 file with the Commission for approval any proposed rule 

22 or proposed rule change, accompanied by an explanation 

23 of its basis and purpose. The Commission, upon its own 

24 motion or complaint, may propose a change to the rules 

25 of the ERO. A proposed rule or proposed rule change shall 
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1 take effect upon a finding by the Commission, after notice 

2 and opportunity for comment, that the change is just, rea3 sonable, not unduly discriminatory or preferential, is in the 

4 public interest, and satisfies the requirements of subsection 

5 (c). 

6 ‘‘(g) RELIABILITY REPORTS.—The ERO shall conduct 

7 periodic assessments of the reliability and adequacy of the 

8 bulk-power system in North America. 

9 ‘‘(h) COORDINATION WITH CANADA AND MEXICO.— 

10 The President is urged to negotiate international agree11 ments with the governments of Canada and Mexico to pro12 vide for effective compliance with reliability standards and 

13 the effectiveness of the ERO in the United States and Can14 ada or Mexico. 

15 ‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have 

16 authority to develop and enforce compliance with reliability 

17 standards for only the bulk-power system. 

18 ‘‘(2) This section does not authorize the ERO or the 

19 Commission to order the construction of additional genera20 tion or transmission capacity or to set and enforce compli21 ance with standards for adequacy or safety of electric facili22 ties or services. 

23 ‘‘(3) Nothing in this section shall be construed to pre24 empt any authority of any State to take action to ensure 

25 the safety, adequacy, and reliability of electric service with-
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1 in that State, as long as such action is not inconsistent 

2 with any reliability standard, except that the State of New 

3 York may establish rules that result in greater reliability 

4 within that State, as long as such action does not result 

5 in lesser reliability outside the State than that provided by 

6 the reliability standards. 

7 ‘‘(4) Within 90 days of the application of the Electric 

8 Reliability Organization or other affected party, and after 

9 notice and opportunity for comment, the Commission shall 

10 issue a final order determining whether a State action is 

11 inconsistent with a reliability standard, taking into consid12 eration any recommendation of the ERO. 

13 ‘‘(5) The Commission, after consultation with the ERO 

14 and the State taking action, may stay the effectiveness of 

15 any State action, pending the Commission’s issuance of a 

16 final order. 

17 ‘‘(j) REGIONAL ADVISORY BODIES.—The Commission 

18 shall establish a regional advisory body on the petition of 

at least 2 19 ⁄3 of the States within a region that have more 

than 1 20 ⁄2 of their electric load served within the region. A 

21 regional advisory body shall be composed of 1 member from 

22 each participating State in the region, appointed by the 

23 Governor of each State, and may include representatives of 

24 agencies, States, and provinces outside the United States. 

25 A regional advisory body may provide advice to the Electric 
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1 Reliability Organization, a regional entity, or the Commis2 sion regarding the governance of an existing or proposed 

3 regional entity within the same region, whether a standard 

4 proposed to apply within the region is just, reasonable, not 

5 unduly discriminatory or preferential, and in the public 

6 interest, whether fees proposed to be assessed within the re7 gion are just, reasonable, not unduly discriminatory or 

8 preferential, and in the public interest and any other re9 sponsibilities requested by the Commission. The Commis10 sion may give deference to the advice of any such regional 

11 advisory body if that body is organized on an Interconnec12 tion-wide basis. 

13 ‘‘(k) ALASKA AND HAWAII.—The provisions of this sec14 tion do not apply to Alaska or Hawaii.’’. 

15 (b) STATUS OF ERO.—The Electric Reliability Orga16 nization certified by the Federal Energy Regulatory Com17 mission under section 215(c) of the Federal Power Act and 

18 any regional entity delegated enforcement authority pursu19 ant to section 215(e)(4) of that Act are not departments, 

20 agencies, or instrumentalities of the United States Govern21 ment. 

22 (c) LIMITATION ON ANNUAL APPROPRIATIONS.—There 

23 is authorized to be appropriated not more than $50,000,000 

24 per year for fiscal years 2006 through 2015 for all activities 

25 under the amendment made by subsection (a). 
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1 Subtitle B—Transmission Infrastructure 

2 Modernization 

3 § 1221. Siting of interstate electric transmission facili4 ties 

5 (a) AMENDMENT OF FEDERAL POWER ACT.—Part II 

6 of the Federal Power Act is amended by adding at the end 

7 the following: 

8 ‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANS9 MISSION FACILITIES. 

10 ‘‘(a) DESIGNATION OF NATIONAL INTEREST ELECTRIC

11 TRANSMISSION CORRIDORS.— 

12 ‘‘(1) TRANSMISSION CONGESTION STUDY.—With13 in 1 year after the enactment of this section, and 

14 every 3 years thereafter, the Secretary of Energy, in 

15 consultation with affected States, shall conduct a 

16 study of electric transmission congestion. After con17 sidering alternatives and recommendations from in18 terested parties, including an opportunity for com19 ment from affected States, the Secretary shall issue a 

20 report, based on such study, which may designate any 

21 geographic area experiencing electric energy trans22 mission capacity constraints or congestion that ad23 versely affects consumers as a national interest elec24 tric transmission corridor. The Secretary shall con25 duct the study and issue the report in consultation 
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1 with any appropriate regional entity referenced in 

2 section 215 of this Act. 

3 ‘‘(2) CONSIDERATIONS.—In determining whether 

4 to designate a national interest electric transmission 

5 corridor referred to in paragraph (1) under this sec6 tion, the Secretary may consider whether— 

7 ‘‘(A) the economic vitality and development 

8 of the corridor, or the end markets served by the 

9 corridor, may be constrained by lack of adequate 

10 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 United 

18 States would be served by the designation; 

19 ‘‘(D) the designation would be in the inter20 est of national energy policy; and 

21 ‘‘(E) the designation would enhance na22 tional defense and homeland security. 

23 ‘‘(b) CONSTRUCTION PERMIT.—Except as provided in 

24 subsection (i), the Commission is authorized, after notice 

25 and an opportunity for hearing, to issue a permit or per-
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1 mits for the construction or modification of electric trans2 mission facilities in a national interest electric trans3 mission corridor designated by the Secretary under sub4 section (a) if the Commission finds that— 

5 ‘‘(1)(A) a State in which the transmission facili6 ties are to be constructed or modified is without au7 thority to— 

8 ‘‘(i) approve the siting of the facilities; or 

9 ‘‘(ii) consider the interstate benefits expected 

10 to be achieved by the proposed construction or 

11 modification of transmission facilities in the 

12 State; 

13 ‘‘(B) the applicant for a permit is a transmit14 ting utility under this Act but does not qualify to 

15 apply for a permit or siting approval for the pro16 posed project in a State because the applicant does 

17 not serve end-use customers in the State; or 

18 ‘‘(C) a State commission or other entity that has 

19 authority to approve the siting of the facilities has— 

20 ‘‘(i) withheld approval for more than 1 year 

21 after the filing of an application pursuant to ap22 plicable law seeking approval or 1 year after the 

23 designation of the relevant national interest elec24 tric transmission corridor, whichever is later; or 
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1 ‘‘(ii) conditioned its approval in such a 

2 manner that the proposed construction or modi3 fication will not significantly reduce trans4 mission congestion in interstate commerce or is 

5 not economically feasible; 

6 ‘‘(2) the facilities to be authorized by the permit 

7 will be used for the transmission of electric energy in 

8 interstate commerce; 

9 ‘‘(3) the proposed construction or modification is 

10 consistent with the public interest; 

11 ‘‘(4) the proposed construction or modification 

12 will significantly reduce transmission congestion in 

13 interstate commerce and protects or benefits con14 sumers; and 

15 ‘‘(5) the proposed construction or modification is 

16 consistent with sound national energy policy and will 

17 enhance energy independence. 

18 ‘‘(c) PERMIT APPLICATIONS.—Permit applications 

19 under subsection (b) shall be made in writing to the Com20 mission. The Commission shall issue rules setting forth the 

21 form of the application, the information to be contained in 

22 the application, and the manner of service of notice of the 

23 permit application upon interested persons. 

24 ‘‘(d) COMMENTS.—In any proceeding before the Com25 mission under subsection (b), the Commission shall afford 
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1 each State in which a transmission facility covered by the 

2 permit is or will be located, each affected Federal agency 

3 and Indian tribe, private property owners, and other inter4 ested persons, a reasonable opportunity to present their 

5 views and recommendations with respect to the need for and 

6 impact of a facility covered by the permit. 

7 ‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 

8 subsection (b) for electric transmission facilities to be lo9 cated on property other than property owned by the United 

10 States or a State, if the permit holder cannot acquire by 

11 contract, or is unable to agree with the owner of the prop12 erty to the compensation to be paid for, the necessary right13 of-way to construct or modify such transmission facilities, 

14 the permit holder may acquire the right-of-way by the exer15 cise of the right of eminent domain in the district court 

16 of the United States for the district in which the property 

17 concerned is located, or in the appropriate court of the State 

18 in which the property is located. The practice and proce19 dure in any action or proceeding for that purpose in the 

20 district court of the United States shall conform as nearly 

21 as may be with the practice and procedure in similar action 

22 or proceeding in the courts of the State where the property 

23 is situated. 
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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 the 

8 full fair market value of the property taken on the date of 

9 the exercise of eminent domain authority, except that the 

10 compensation shall exceed fair market value if necessary to 

11 make the landowner whole for decreases in the value of any 

12 portion of the land not subject to eminent domain. Any par13 cel of land acquired by eminent domain under this sub14 section shall be transferred back to the owner from whom 

15 it was acquired (or his heirs or assigns) if the land is not 

16 used for the construction or modification of electric trans17 mission facilities within a reasonable period of time after 

18 the acquisition. Other than construction, modification, op19 eration, or maintenance of electric transmission facilities 

20 and related facilities, property acquired under subsection 

21 (e) may not be used for any purpose (including use for any 

22 heritage area, recreational trail, or park) without the con23 sent of the owner of the parcel from whom the property was 

24 acquired (or the owner’s heirs or assigns). 
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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 related 

5 to an electric transmission or distribution facility so 

6 requests, the Department of Energy (DOE) shall act 

7 as the lead agency for purposes of coordinating all 

8 applicable Federal authorizations and related envi9 ronmental reviews of the facility. For purposes of this 

10 subsection, the term ‘Federal authorization’ means 

11 any authorization required under Federal law in 

12 order to site a transmission or distribution facility, 

13 including but not limited to such permits, special use 

14 authorizations, certifications, opinions, or other ap15 provals as may be required, whether issued by a Fed16 eral or a State agency. To the maximum extent prac17 ticable under applicable Federal law, the Secretary of 

18 Energy shall coordinate this Federal authorization 

19 and review process with any Indian tribes, multi20 State entities, and State agencies that are responsible 

21 for conducting any separate permitting and environ22 mental reviews of the facility, to ensure timely and ef23 ficient review and permit decisions. 

24 ‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 

25 agency, the Department of Energy, in consultation 
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1 with agencies responsible for Federal authorizations 

2 and, as appropriate, with Indian tribes, multi-State 

3 entities, and State agencies that are willing to coordi4 nate their own separate permitting and environ5 mental reviews with the Federal authorization and 

6 environmental reviews, shall establish prompt and 

7 binding intermediate milestones and ultimate dead8 lines for the review of, and Federal authorization de9 cisions relating to, the proposed facility. The Sec10 retary of Energy shall ensure that once an applica11 tion has been submitted with such data as the Sec12 retary considers necessary, all permit decisions and 

13 related environmental reviews under all applicable 

14 Federal laws shall be completed within 1 year or, if 

15 a requirement of another provision of Federal law 

16 makes this impossible, as soon thereafter as is prac17 ticable. The Secretary of Energy also shall provide an 

18 expeditious pre-application mechanism for prospec19 tive applicants to confer with the agencies involved to 

20 have each such agency determine and communicate to 

21 the prospective applicant within 60 days of when the 

22 prospective applicant submits a request for such in23 formation concerning— 

24 ‘‘(A) the likelihood of approval for a poten25 tial facility; and 
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1 ‘‘(B) key issues of concern to the agencies 

2 and public. 

3 ‘‘(3) CONSOLIDATED ENVIRONMENTAL REVIEW

4 AND RECORD OF DECISION.—As lead agency head, the 

5 Secretary of Energy, in consultation with the affected 

6 agencies, shall prepare a single environmental review 

7 document, which shall be used as the basis for all de8 cisions on the proposed project under Federal law. 

9 The document may be an environmental assessment 

10 or environmental impact statement under the Na11 tional Environmental Policy Act of 1969 if war12 ranted, or such other form of analysis as may be war13 ranted. The Secretary of Energy and the heads of 

14 other agencies shall streamline the review and permit15 ting of transmission and distribution facilities within 

16 corridors designated under section 503 of the Federal 

17 Land Policy and Management Act (43 U.S.C. 1763) 

18 by fully taking into account prior analyses and deci19 sions relating to the corridors. Such document shall 

20 include consideration by the relevant agencies of any 

21 applicable criteria or other matters as required under 

22 applicable laws. 

23 ‘‘(4) APPEALS.—In the event that any agency 

24 has denied a Federal authorization required for a 

25 transmission or distribution facility, or has failed to 
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1 act by the deadline established by the Secretary pur2 suant to this section for deciding whether to issue the 

3 authorization, the applicant or any State in which 

4 the facility would be located may file an appeal with 

5 the Secretary, who shall, in consultation with the af6 fected agency, review the denial or take action on the 

7 pending application. Based on the overall record and 

8 in consultation with the affected agency, the Secretary 

9 may then either issue the necessary authorization 

10 with any appropriate conditions, or deny the applica11 tion. The Secretary shall issue a decision within 90 

12 days of the filing of the appeal. In making a decision 

13 under this paragraph, the Secretary shall comply 

14 with applicable requirements of Federal law, includ15 ing any requirements of the Endangered Species Act, 

16 the Clean Water Act, the National Forest Manage17 ment Act, the National Environmental Policy Act of 

18 1969, and the Federal Land Policy and Management 

19 Act. 

20 ‘‘(5) CONFORMING REGULATIONS AND MEMO21 RANDA OF UNDERSTANDING.—Not later than 18 

22 months after the date of enactment of this section, the 

23 Secretary of Energy shall issue any regulations nec24 essary to implement this subsection. Not later than 1 

25 year after the date of enactment of this section, the 
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1 Secretary and the heads of all Federal agencies with 

2 authority to issue Federal authorizations shall enter 

3 into Memoranda of Understanding to ensure the time4 ly and coordinated review and permitting of elec5 tricity transmission and distribution facilities. The 

6 head of each Federal agency with authority to issue 

7 a Federal authorization shall designate a senior offi8 cial responsible for, and dedicate sufficient other staff 

9 and resources to ensure, full implementation of the 

10 DOE regulations and any Memoranda. Interested In11 dian tribes, multi-State entities, and State agencies 

12 may enter such Memoranda of Understanding. 

13 ‘‘(6) DURATION AND RENEWAL.—Each Federal 

14 land use authorization for an electricity transmission 

15 or distribution facility shall be issued— 

16 ‘‘(A) for a duration, as determined by the 

17 Secretary of Energy, commensurate with the an18 ticipated use of the facility, and 

19 ‘‘(B) with appropriate authority to manage 

20 the right-of-way for reliability and environ21 mental protection. 

22 Upon the expiration of any such authorization (in23 cluding an authorization issued prior to enactment of 

24 this section), the authorization shall be reviewed for 

25 renewal taking fully into account reliance on such 
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1 electricity infrastructure, recognizing its importance 

2 for public health, safety and economic welfare and as 

3 a legitimate use of Federal lands. 

4 ‘‘(7) MAINTAINING AND ENHANCING THE TRANS5 MISSION INFRASTRUCTURE.—In exercising the respon6 sibilities under this section, the Secretary of Energy 

7 shall consult regularly with the Federal Energy Regu8 latory Commission (FERC), FERC-approved electric 

9 reliability organizations (including related regional 

10 entities), and FERC-approved Regional Transmission 

11 Organizations and Independent System Operators. 

12 ‘‘(i) INTERSTATE COMPACTS.—The consent of Congress 

13 is hereby given for 3 or more contiguous States to enter 

14 into an interstate compact, subject to approval by Congress, 

15 establishing regional transmission siting agencies to facili16 tate siting of future electric energy transmission facilities 

17 within such States and to carry out the electric energy 

18 transmission siting responsibilities of such States. The Sec19 retary of Energy may provide technical assistance to re20 gional transmission siting agencies established under this 

21 subsection. Such regional transmission siting agencies shall 

22 have the authority to review, certify, and permit siting of 

23 transmission facilities, including facilities in national in24 terest electric transmission corridors (other than facilities 

25 on property owned by the United States). The Commission 
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1 shall have no authority to issue a permit for the construc2 tion or modification of electric transmission facilities with3 in a State that is a party to a compact, unless the members 

4 of a compact are in disagreement and the Secretary makes, 

5 after notice and an opportunity for a hearing, the finding 

6 described in subsection (b)(1)(C). 

7 ‘‘(j) SAVINGS CLAUSE.—Nothing in this section shall 

8 be construed to affect any requirement of the environmental 

9 laws of the United States, including, but not limited to, 

10 the National Environmental Policy Act of 1969. Subsection 

11 (h)(4) of this section shall not apply to any Congression12 ally-designated components of the National Wilderness 

13 Preservation System, the National Wild and Scenic Rivers 

14 System, or the National Park system (including National 

15 Monuments therein). 

16 ‘‘(k) ERCOT.—This section shall not apply within the 

17 area referred to in section 212(k)(2)(A).’’. 

18 (b) REPORTS TO CONGRESS ON CORRIDORS AND

19 RIGHTS OF WAY ON FEDERAL LANDS.—The Secretary of 

20 the Interior, the Secretary of Energy, the Secretary of Agri21 culture, and the Chairman of the Council on Environ22 mental Quality shall, within 90 days of the date of enact23 ment of this subsection, submit a joint report to Congress 

24 identifying each of the following: 
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1 (1) All existing designated transmission and dis2 tribution corridors on Federal land and the status of 

3 work related to proposed transmission and distribu4 tion corridor designations under Title V of the Fed5 eral Land Policy and Management Act (43 U.S.C. 

6 1761 et. Seq.), the schedule for completing such work, 

7 any impediments to completing the work, and steps 

8 that Congress could take to expedite the process. 

9 (2) The number of pending applications to locate 

10 transmission and distribution facilities on Federal 

11 lands, key information relating to each such facility, 

12 how long each application has been pending, the 

13 schedule for issuing a timely decision as to each facil14 ity, and progress in incorporating existing and new 

15 such rights-of-way into relevant land use and resource 

16 management plans or their equivalent. 

17 (3) The number of existing transmission and dis18 tribution rights-of-way on Federal lands that will 

19 come up for renewal within the following 5, 10, and 

20 15 year periods, and a description of how the Secre21 taries plan to manage such renewals. 

22 § 1222. Third-party finance 

23 (a) EXISTING FACILITIES.—The Secretary of Energy 

24 (hereinafter in this section referred to as the ‘‘Secretary’’), 

25 acting through the Administrator of the Western Area 
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1 Power Administration (hereinafter in this section referred 

2 to as ‘‘WAPA’’), or through the Administrator of the South3 western Power Administration (hereinafter in this section 

4 referred to as ‘‘SWPA’’), or both, may design, develop, con5 struct, operate, maintain, or own, or participate with other 

6 entities in designing, developing, constructing, operating, 

7 maintaining, or owning, an electric power transmission fa8 cility and related facilities (‘‘Project’’) needed to upgrade 

9 existing transmission facilities owned by SWPA or WAPA 

10 if the Secretary of Energy, in consultation with the applica11 ble Administrator, determines that the proposed Project— 

12 (1)(A) is located in a national interest electric 

13 transmission corridor designated under section 216(a) 

14 of the Federal Power Act and will reduce congestion 

15 of electric transmission in interstate commerce; or 

16 (B) is necessary to accommodate an actual or 

17 projected increase in demand for electric transmission 

18 capacity; 

19 (2) is consistent with— 

20 (A) transmission needs identified, in a 

21 transmission expansion plan or otherwise, by the 

22 appropriate Regional Transmission Organiza23 tion or Independent System Operator (as defined 

24 in the Federal Power Act), if any, or approved 

25 regional reliability organization; and 
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1 (B) efficient and reliable operation of the 

2 transmission grid; and 

3 (3) would be operated in conformance with pru4 dent utility practice. 

5 (b) NEW FACILITIES.—The Secretary, acting through 

6 WAPA or SWPA, or both, may design, develop, construct, 

7 operate, maintain, or own, or participate with other enti8 ties in designing, developing, constructing, operating, 

9 maintaining, or owning, a new electric power transmission 

10 facility and related facilities (‘‘Project’’) located within any 

11 State in which WAPA or SWPA operates if the Secretary, 

12 in consultation with the applicable Administrator, deter13 mines that the proposed Project— 

14 (1)(A) is located in an area designated under 

15 section 216(a) of the Federal Power Act and will re16 duce congestion of electric transmission in interstate 

17 commerce; or 

18 (B) is necessary to accommodate an actual or 

19 projected increase in demand for electric transmission 

20 capacity; 

21 (2) is consistent with— 

22 (A) transmission needs identified, in a 

23 transmission expansion plan or otherwise, by the 

24 appropriate Regional Transmission Organiza-
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1 tion or Independent System Operator, if any, or 

2 approved regional reliability organization; and 

3 (B) efficient and reliable operation of the 

4 transmission grid; 

5 (3) will be operated in conformance with pru6 dent utility practice; 

7 (4) will be operated by, or in conformance with 

8 the rules of, the appropriate (A) Regional Trans9 mission Organization or Independent System Oper10 ator, if any, or (B) if such an organization does not 

11 exist, regional reliability organization; and 

12 (5) will not duplicate the functions of existing 

13 transmission facilities or proposed facilities which are 

14 the subject of ongoing or approved siting and related 

15 permitting proceedings. 

16 (c) OTHER FUNDS.— 

17 (1) IN GENERAL.—In carrying out a Project 

18 under subsection (a) or (b), the Secretary may accept 

19 and use funds contributed by another entity for the 

20 purpose of carrying out the Project. 

21 (2) AVAILABILITY.—The contributed funds shall 

22 be available for expenditure for the purpose of car23 rying out the Project— 

24 (A) without fiscal year limitation; and 
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1 (B) as if the funds had been appropriated 

2 specifically for that Project. 

3 (3) ALLOCATION OF COSTS.—In carrying out a 

4 Project under subsection (a) or (b), any costs of the 

5 Project not paid for by contributions from another en6 tity shall be collected through rates charged to cus7 tomers using the new transmission capability pro8 vided by the Project and allocated equitably among 

9 these project beneficiaries using the new transmission 

10 capability. 

11 (d) RELATIONSHIP TO OTHER LAWS.—Nothing in this 

12 section affects any requirement of— 

13 (1) any Federal environmental law, including 

14 the National Environmental Policy Act of 1969 (42 

15 U.S.C. 4321 et seq.); 

16 (2) any Federal or State law relating to the 

17 siting of energy facilities; or 

18 (3) any existing authorizing statutes. 

19 (e) SAVINGS CLAUSE.—Nothing in this section shall 

20 constrain or restrict an Administrator in the utilization of 

21 other authority delegated to the Administrator of WAPA or 

22 SWPA. 

23 (f) SECRETARIAL DETERMINATIONS.—Any determina24 tion made pursuant to subsections (a) or (b) shall be based 

25 on findings by the Secretary using the best available data. 
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1 (g) MAXIMUM FUNDING AMOUNT.—The Secretary shall 

2 not accept and use more than $100,000,000 under sub3 section (c)(1) for the period encompassing fiscal years 2006 

4 through 2015. 

5 § 1223. Transmission system monitoring 

6 Within 6 months after the date of enactment of this 

7 Act, the Secretary of Energy and the Federal Energy Regu8 latory Commission shall study and report to Congress on 

9 the steps which must be taken to establish a system to make 

10 available to all transmission system owners and Regional 

11 Transmission Organizations (as defined in the Federal 

12 Power Act) within the Eastern and Western Interconnec13 tions real-time information on the functional status of all 

14 transmission lines within such Interconnections. In such 

15 study, the Commission shall assess technical means for im16 plementing such transmission information system and 

17 identify the steps the Commission or Congress must take 

18 to require the implementation of such system. 

19 § 1224. Advanced transmission technologies 

20 (a) AUTHORITY.—The Federal Energy Regulatory 

21 Commission, in the exercise of its authorities under the Fed22 eral Power Act and the Public Utility Regulatory Policies 

23 Act of 1978, shall encourage the deployment of advanced 

24 transmission technologies. 
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1 (b) DEFINITION.—For the purposes of this section, the 

2 term ‘‘advanced transmission technologies’’ means tech3 nologies that increase the capacity, efficiency, or reliability 

4 of existing or new transmission facilities, including, but not 

5 limited to— 

6 (1) high-temperature lines (including super7 conducting cables); 

8 (2) underground cables; 

9 (3) advanced conductor technology (including 

10 advanced composite conductors, high-temperature low11 sag conductors, and fiber optic temperature sensing 

12 conductors); 

13 (4) high-capacity ceramic electric wire, connec14 tors, and insulators; 

15 (5) optimized transmission line configurations 

16 (including multiple phased transmission lines); 

17 (6) modular equipment; 

18 (7) wireless power transmission; 

19 (8) ultra-high voltage lines; 

20 (9) high-voltage DC technology; 

21 (10) flexible AC transmission systems; 

22 (11) energy storage devices (including pumped 

23 hydro, compressed air, superconducting magnetic en24 ergy storage, flywheels, and batteries); 

25 (12) controllable load; 
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1 (13) distributed generation (including PV, fuel 

2 cells, microturbines); 

3 (14) enhanced power device monitoring; 

4 (15) direct system state sensors; 

5 (16) fiber optic technologies; 

6 (17) power electronics and related software (in7 cluding real time monitoring and analytical soft8 ware); and 

9 (18) any other technologies the Commission con10 siders appropriate. 

11 (c) OBSOLETE OR IMPRACTICABLE TECHNOLOGIES.— 

12 The Commission is authorized to cease encouraging the de13 ployment of any technology described in this section on a 

14 finding that such technology has been rendered obsolete or 

15 otherwise impracticable to deploy. 

16 § 1225. Electric transmission and distribution pro17 grams 

18 (a) ELECTRIC TRANSMISSION AND DISTRIBUTION

19 PROGRAM.—The Secretary of Energy (hereinafter in this 

20 section referred to as the ‘‘Secretary’’) acting through the 

21 Director of the Office of Electric Transmission and Dis22 tribution shall establish a comprehensive research, develop23 ment, demonstration and commercial application program 

24 to promote improved reliability and efficiency of electrical 
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1 transmission and distribution systems. This program shall 

2 include— 

3 (1) advanced energy delivery and storage tech4 nologies, materials, and systems, including new trans5 mission technologies, such as flexible alternating cur6 rent transmission systems, composite conductor mate7 rials and other technologies that enhance reliability, 

8 operational flexibility, or power-carrying capability; 

9 (2) advanced grid reliability and efficiency tech10 nology development; 

11 (3) technologies contributing to significant load 

12 reductions; 

13 (4) advanced metering, load management, and 

14 control technologies; 

15 (5) technologies to enhance existing grid compo16 nents; 

17 (6) the development and use of high-temperature 

18 superconductors to— 

19 (A) enhance the reliability, operational 

20 flexibility, or power-carrying capability of elec21 tric transmission or distribution systems; or 

22 (B) increase the efficiency of electric energy 

23 generation, transmission, distribution, or storage 

24 systems; 
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1 (7) integration of power systems, including sys2 tems to deliver high-quality electric power, electric 

3 power reliability, and combined heat and power; 

4 (8) supply of electricity to the power grid by 

5 small scale, distributed and residential-based power 

6 generators; 

7 (9) the development and use of advanced grid de8 sign, operation and planning tools; 

9 (10) any other infrastructure technologies, as ap10 propriate; and 

11 (11) technology transfer and education. 

12 (b) PROGRAM PLAN.—Not later than 1 year after the 

13 date of the enactment of this legislation, the Secretary, in 

14 consultation with other appropriate Federal agencies, shall 

15 prepare and transmit to Congress a 5-year program plan 

16 to guide activities under this section. In preparing the pro17 gram plan, the Secretary may consult with utilities, energy 

18 services providers, manufacturers, institutions of higher 

19 education, other appropriate State and local agencies, envi20 ronmental organizations, professional and technical soci21 eties, and any other persons the Secretary considers appro22 priate. 

23 (c) IMPLEMENTATION.—The Secretary shall consider 

24 implementing this program using a consortium of industry, 

25 university and national laboratory participants. 
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1 (d) REPORT.—Not later than 2 years after the trans2 mittal of the plan under subsection (b), the Secretary shall 

3 transmit a report to Congress describing the progress made 

4 under this section and identifying any additional resources 

5 needed to continue the development and commercial appli6 cation of transmission and distribution infrastructure tech7 nologies. 

8 (e) POWER DELIVERY RESEARCH INITIATIVE.— 

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

10 a research, development, demonstration, and commer11 cial application initiative specifically focused on 

12 power delivery utilizing components incorporating 

13 high temperature superconductivity. 

14 (2) GOALS.—The goals of this initiative shall be 

15 to— 

16 (A) establish facilities to develop high tem17 perature superconductivity power applications 

18 in partnership with manufacturers and utilities; 

19 (B) provide technical leadership for estab20 lishing reliability for high temperature super21 conductivity power applications including suit22 able modeling and analysis; 

23 (C) facilitate commercial transition toward 

24 direct current power transmission, storage, and 
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1 use for high power systems utilizing high tem2 perature superconductivity; and 

3 (D) facilitate the integration of very low 

4 impedance high temperature superconducting 

5 wires and cables in existing electric networks to 

6 improve system performance, power flow control 

7 and reliability. 

8 (3) REQUIREMENTS.—The initiative shall in9 clude— 

10 (A) feasibility analysis, planning, research, 

11 and design to construct demonstrations of super12 conducting links in high power, direct current 

13 and controllable alternating current trans14 mission systems; 

15 (B) public-private partnerships to dem16 onstrate deployment of high temperature super17 conducting cable into testbeds simulating a real18 istic transmission grid and under varying trans19 mission conditions, including actual grid inser20 tions; and 

21 (C) testbeds developed in cooperation with 

22 national laboratories, industries, and univer23 sities to demonstrate these technologies, prepare 

24 the technologies for commercial introduction, and 
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1 address cost or performance roadblocks to suc2 cessful commercial use. 

3 (4) AUTHORIZATION OF APPROPRIATIONS.—For 

4 purposes of carrying out this subsection, there are au5 thorized to be appropriated— 

6 (A) for fiscal year 2006, $15,000,000; 

7 (B) for fiscal year 2007, $20,000,000; 

8 (C) for fiscal year 2008, $30,000,000; 

9 (D) for fiscal year 2009, $35,000,000; and 

10 (E) for fiscal year 2010, $40,000,000. 

11 § 1226. Advanced Power System Technology Incentive 

12 Program 

13 (a) PROGRAM.—The Secretary of Energy is authorized 

14 to establish an Advanced Power System Technology Incen15 tive Program to support the deployment of certain advanced 

16 power system technologies and to improve and protect cer17 tain critical governmental, industrial, and commercial 

18 processes. Funds provided under this section shall be used 

19 by the Secretary to make incentive payments to eligible 

20 owners or operators of advanced power system technologies 

21 to increase power generation through enhanced operational, 

22 economic, and environmental performance. Payments under 

23 this section may only be made upon receipt by the Secretary 

24 of an incentive payment application establishing an appli25 cant as either— 
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1 (1) a qualifying advanced power system tech2 nology facility; or 

3 (2) a qualifying security and assured power fa4 cility. 

5 (b) INCENTIVES.—Subject to availability of funds, a 

6 payment of 1.8 cents per kilowatt-hour shall be paid to the 

7 owner or operator of a qualifying advanced power system 

8 technology facility under this section for electricity gen9 erated at such facility. An additional 0.7 cents per kilowatt10 hour shall be paid to the owner or operator of a qualifying 

11 security and assured power facility for electricity generated 

12 at such facility. Any facility qualifying under this section 

13 shall be eligible for an incentive payment for up to, but 

14 not more than, the first 10,000,000 kilowatt-hours produced 

15 in any fiscal year. 

16 (c) ELIGIBILITY.—For purposes of this section: 

17 (1) QUALIFYING ADVANCED POWER SYSTEM

18 TECHNOLOGY FACILITY.—The term ‘‘qualifying ad19 vanced power system technology facility’’ means a fa20 cility using an advanced fuel cell, turbine, or hybrid 

21 power system or power storage system to generate or 

22 store electric energy. 

23 (2) QUALIFYING SECURITY AND ASSURED POWER

24 FACILITY.—The term ‘‘qualifying security and as25 sured power facility’’ means a qualifying advanced 
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1 power system technology facility determined by the 

2 Secretary of Energy, in consultation with the Sec3 retary of Homeland Security, to be in critical need of 

4 secure, reliable, rapidly available, high-quality power 

5 for critical governmental, industrial, or commercial 

6 applications. 

7 (d) AUTHORIZATION.—There are authorized to be ap8 propriated to the Secretary of Energy for the purposes of 

9 this section, $10,000,000 for each of the fiscal years 2006 

10 through 2012. 

11 § 1227. Office of Electric Transmission and Distribu12 tion 

13 (a) CREATION OF AN OFFICE OF ELECTRIC TRANS14 MISSION AND DISTRIBUTION.—Title II of the Department 

15 of Energy Organization Act (42 U.S.C. 7131 et seq.) (as 

16 amended by section 502(a) of this Act) is amended by in17 serting the following after section 217, as added by title V 

18 of this Act: 

19 ‘‘SEC. 218. OFFICE OF ELECTRIC TRANSMISSION AND DIS20 TRIBUTION. 

21 ‘‘(a) ESTABLISHMENT.—There is established within 

22 the Department an Office of Electric Transmission and 

23 Distribution. This Office shall be headed by a Director, sub24 ject to the authority of the Secretary. The Director shall 

25 be appointed by the Secretary. The Director shall be com-
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1 pensated at the annual rate prescribed for level IV of the 

2 Executive Schedule under section 5315 of title 5, United 

3 States Code. 

4 ‘‘(b) DIRECTOR.—The Director shall— 

5 ‘‘(1) coordinate and develop a comprehensive, 

6 multi-year strategy to improve the Nation’s electricity 

7 transmission and distribution; 

8 ‘‘(2) implement or, where appropriate, coordi9 nate the implementation of, the recommendations 

10 made in the Secretary’s May 2002 National Trans11 mission Grid Study; 

12 ‘‘(3) oversee research, development, and dem13 onstration to support Federal energy policy related to 

14 electricity transmission and distribution; 

15 ‘‘(4) grant authorizations for electricity import 

16 and export pursuant to section 202(c), (d), (e), and 

17 (f) of the Federal Power Act (16 U.S.C. 824a); 

18 ‘‘(5) perform other functions, assigned by the 

19 Secretary, related to electricity transmission and dis20 tribution; and 

21 ‘‘(6) develop programs for workforce training in 

22 power and transmission engineering.’’. 

23 (b) CONFORMING AMENDMENTS.—(1) The table of con24 tents of the Department of Energy Organization Act (42 
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1 U.S.C. 7101 note) is amended by inserting after the item 

2 relating to section 217 the following new item: 

‘‘Sec. 218. Office of Electric Transmission and Distribution.’’. 

3 (2) Section 5315 of title 5, United States Code, is 

4 amended by inserting after the item relating to ‘‘Inspector 

5 General, Department of Energy.’’ the following: 

6 ‘‘Director, Office of Electric Transmission and 

7 Distribution, Department of Energy.’’. 

8 Subtitle C—Transmission 

9 Operation Improvements 

10 SEC. 1231. OPEN NONDISCRIMINATORY ACCESS. 

11 Part II of the Federal Power Act (16 U.S.C. 824 et 

12 seq.) is amended by inserting after section 211 the following 

13 new section: 

14 ‘‘SEC. 211A. OPEN ACCESS BY UNREGULATED TRANSMIT15 TING UTILITIES. 

16 ‘‘(a) TRANSMISSION SERVICES.—Subject to section 

17 212(h), the Commission may, by rule or order, require an 

18 unregulated transmitting utility to provide transmission 

19 services— 

20 ‘‘(1) at rates that are comparable to those that 

21 the unregulated transmitting utility charges itself; 

22 and 

23 ‘‘(2) on terms and conditions (not relating to 

24 rates) that are comparable to those under which such 

25 unregulated transmitting utility provides trans-
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1 mission services to itself and that are not unduly dis2 criminatory or preferential. 

3 ‘‘(b) EXEMPTION.—The Commission shall exempt from 

4 any rule or order under this section any unregulated trans5 mitting utility that— 

6 ‘‘(1) sells no more than 4,000,000 megawatt 

7 hours of electricity per year; or 

8 ‘‘(2) does not own or operate any transmission 

9 facilities that are necessary for operating an inter10 connected transmission system (or any portion there11 of); or 

12 ‘‘(3) meets other criteria the Commission deter13 mines to be in the public interest. 

14 ‘‘(c) LOCAL DISTRIBUTION FACILITIES.—The require15 ments of subsection (a) shall not apply to facilities used 

16 in local distribution. 

17 ‘‘(d) EXEMPTION TERMINATION.—Whenever the Com18 mission, after an evidentiary hearing held upon a com19 plaint and after giving consideration to reliability stand20 ards established under section 215, finds on the basis of a 

21 preponderance of the evidence that any exemption granted 

22 pursuant to subsection (b) unreasonably impairs the con23 tinued reliability of an interconnected transmission system, 

24 it shall revoke the exemption granted to that transmitting 

25 utility. 
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1 ‘‘(e) APPLICATION TO UNREGULATED TRANSMITTING

2 UTILITIES.—The rate changing procedures applicable to 

3 public utilities under subsections (c) and (d) of section 205 

4 are applicable to unregulated transmitting utilities for pur5 poses of this section. 

6 ‘‘(f) REMAND.—In exercising its authority under para7 graph (1) of subsection (a), the Commission may remand 

8 transmission rates to an unregulated transmitting utility 

9 for review and revision where necessary to meet the require10 ments of subsection (a). 

11 ‘‘(g) OTHER REQUESTS.—The provision of trans12 mission services under subsection (a) does not preclude a 

13 request for transmission services under section 211. 

14 ‘‘(h) LIMITATION.—The Commission may not require 

15 a State or municipality to take action under this section 

16 that would violate a private activity bond rule for purposes 

17 of section 141 of the Internal Revenue Code of 1986 (26 

18 U.S.C. 141). 

19 ‘‘(i) TRANSFER OF CONTROL OF TRANSMITTING FA20 CILITIES.—Nothing in this section authorizes the Commis21 sion to require an unregulated transmitting utility to 

22 transfer control or operational control of its transmitting 

23 facilities to an RTO or any other Commission-approved 

24 independent transmission organization designated to pro25 vide nondiscriminatory transmission access. 
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1 ‘‘(j) DEFINITION.—For purposes of this section, the 

2 term ‘unregulated transmitting utility’ means an entity 

3 that— 

4 ‘‘(1) owns or operates facilities used for the 

5 transmission of electric energy in interstate com6 merce; and 

7 ‘‘(2) is an entity described in section 201(f).’’. 

8 SEC. 1232. SENSE OF CONGRESS ON REGIONAL TRANS9 MISSION ORGANIZATIONS. 

10 It is the sense of Congress that, in order to promote 

11 fair, open access to electric transmission service, benefit re12 tail consumers, facilitate wholesale competition, improve ef13 ficiencies in transmission grid management, promote grid 

14 reliability, remove opportunities for unduly discriminatory 

15 or preferential transmission practices, and provide for the 

16 efficient development of transmission infrastructure needed 

17 to meet the growing demands of competitive wholesale 

18 power markets, all transmitting utilities in interstate com19 merce should voluntarily become members of Regional 

20 Transmission Organizations as defined in section 3 of the 

21 Federal Power Act. 

22 SEC. 1233. REGIONAL TRANSMISSION ORGANIZATION AP23 PLICATIONS PROGRESS REPORT. 

24 Not later than 120 days after the date of enactment 

25 of this section, the Federal Energy Regulatory Commission 
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1 shall submit to Congress a report containing each of the 

2 following: 

3 (1) A list of all regional transmission organiza4 tion applications filed at the Commission pursuant to 

5 subpart F of part 35 of title 18, Code of Federal Reg6 ulations (in this section referred to as ‘‘Order No. 

7 2000’’), including an identification of each public 

8 utility and other entity included within the proposed 

9 membership of the regional transmission organiza10 tion. 

11 (2) A brief description of the status of each pend12 ing regional transmission organization application, 

13 including a precise explanation of how each fails to 

14 comply with the minimal requirements of Order No. 

15 2000 and what steps need to be taken to bring each 

16 application into such compliance. 

17 (3) For any application that has not been fi18 nally approved by the Commission, a detailed de19 scription of every aspect of the application that the 

20 Commission has determined does not conform to the 

21 requirements of Order No. 2000. 

22 (4) For any application that has not been fi23 nally approved by the Commission, an explanation 

24 by the Commission of why the items described pursu25 ant to paragraph (3) constitute material noncompli-
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1 ance with the requirements of the Commission’s Order 

2 No. 2000 sufficient to justify denial of approval by 

3 the Commission. 

4 (5) For all regional transmission organization 

5 applications filed pursuant to the Commission’s 

6 Order No. 2000, whether finally approved or not— 

7 (A) a discussion of that regional trans8 mission organization’s efforts to minimize rate 

9 seams between itself and— 

10 (i) other regional transmission organi11 zations; and 

12 (ii) entities not participating in a re13 gional transmission organization; 

14 (B) a discussion of the impact of such seams 

15 on consumers and wholesale competition; and 

16 (C) a discussion of minimizing cost-shifting 

17 on consumers. 

18 SEC. 1234. FEDERAL UTILITY PARTICIPATION IN REGIONAL 

19 TRANSMISSION ORGANIZATIONS. 

20 (a) DEFINITIONS.—For purposes of this section— 

21 (1) APPROPRIATE FEDERAL REGULATORY AU22 THORITY.—The term ‘‘appropriate Federal regulatory 

23 authority’’ means— 

24 (A) with respect to a Federal power mar25 keting agency (as defined in the Federal Power 
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1 Act), the Secretary of Energy, except that the 

2 Secretary may designate the Administrator of a 

3 Federal power marketing agency to act as the 

4 appropriate Federal regulatory authority with 

5 respect to the transmission system of that Fed6 eral power marketing agency; and 

7 (B) with respect to the Tennessee Valley Au8 thority, the Board of Directors of the Tennessee 

9 Valley Authority. 

10 (2) FEDERAL UTILITY.—The term ‘‘Federal util11 ity’’ means a Federal power marketing agency or the 

12 Tennessee Valley Authority. 

13 (3) TRANSMISSION SYSTEM.—The term ‘‘trans14 mission system’’ means electric transmission facilities 

15 owned, leased, or contracted for by the United States 

16 and operated by a Federal utility. 

17 (b) TRANSFER.—The appropriate Federal regulatory 

18 authority is authorized to enter into a contract, agreement 

19 or other arrangement transferring control and use of all or 

20 part of the Federal utility’s transmission system to an RTO 

21 or ISO (as defined in the Federal Power Act), approved 

22 by the Federal Energy Regulatory Commission. Such con23 tract, agreement or arrangement shall include— 

24 (1) performance standards for operation and use 

25 of the transmission system that the head of the Fed-
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1 eral utility determines necessary or appropriate, in2 cluding standards that assure recovery of all the Fed3 eral utility’s costs and expenses related to the trans4 mission facilities that are the subject of the contract, 

5 agreement or other arrangement; consistency with ex6 isting contracts and third-party financing arrange7 ments; and consistency with said Federal utility’s 

8 statutory authorities, obligations, and limitations; 

9 (2) provisions for monitoring and oversight by 

10 the Federal utility of the RTO’s or ISO’s fulfillment 

11 of the terms and conditions of the contract, agreement 

12 or other arrangement, including a provision for the 

13 resolution of disputes through arbitration or other 

14 means with the regional transmission organization or 

15 with other participants, notwithstanding the obliga16 tions and limitations of any other law regarding ar17 bitration; and 

18 (3) a provision that allows the Federal utility to 

19 withdraw from the RTO or ISO and terminate the 

20 contract, agreement or other arrangement in accord21 ance with its terms. 

22 Neither this section, actions taken pursuant to it, nor any 

23 other transaction of a Federal utility using an RTO or ISO 

24 shall confer upon the Federal Energy Regulatory Commis25 sion jurisdiction or authority over the Federal utility’s elec-
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1 tric generation assets, electric capacity or energy that the 

2 Federal utility is authorized by law to market, or the Fed3 eral utility’s power sales activities. 

4 (c) EXISTING STATUTORY AND OTHER OBLIGA5 TIONS.— 

6 (1) SYSTEM OPERATION REQUIREMENTS.—No 

7 statutory provision requiring or authorizing a Fed8 eral utility to transmit electric power or to construct, 

9 operate or maintain its transmission system shall be 

10 construed to prohibit a transfer of control and use of 

11 its transmission system pursuant to, and subject to 

12 all requirements of subsection (b). 

13 (2) OTHER OBLIGATIONS.—This subsection shall 

14 not be construed to— 

15 (A) suspend, or exempt any Federal utility 

16 from, any provision of existing Federal law, in17 cluding but not limited to any requirement or 

18 direction relating to the use of the Federal util19 ity’s transmission system, environmental protec20 tion, fish and wildlife protection, flood control, 

21 navigation, water delivery, or recreation; or 

22 (B) authorize abrogation of any contract or 

23 treaty obligation. 

24 (3) REPEAL.—Section 311 of title III of Appen25 dix B of the Act of October 27, 2000 (P.L. 106–377, 
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1 section 1(a)(2); 114 Stat. 1441, 1441A–80; 16 U.S.C. 

2 824n) is repealed. 

3 SEC. 1235. STANDARD MARKET DESIGN. 

4 (a) REMAND.—The Commission’s proposed rule5 making entitled ‘‘Remedying Undue Discrimination 

6 through Open Access Transmission Service and Standard 

7 Electricity Market Design’’ (Docket No. RM01–12–000) 

8 (‘‘SMD NOPR’’) is remanded to the Commission for recon9 sideration. No final rule mandating a standard electricity 

10 market design pursuant to the proposed rulemaking, includ11 ing any rule or order of general applicability within the 

12 scope of the proposed rulemaking, may be issued before Oc13 tober 31, 2006, or take effect before December 31, 2006. Any 

14 final rule issued by the Commission pursuant to the pro15 posed rulemaking shall be preceded by a second notice of 

16 proposed rulemaking issued after the date of enactment of 

17 this Act and an opportunity for public comment. 

18 (b) SAVINGS CLAUSE.—This section shall not be con19 strued to modify or diminish any authority or obligation 

20 the Commission has under this Act, the Federal Power Act, 

21 or other applicable law, including, but not limited to, any 

22 authority to— 

23 (1) issue any rule or order (of general or par24 ticular applicability) pursuant to any such authority 

25 or obligation; or 
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1 (2) act on a filing or filings by 1 or more trans2 mitting utilities for the voluntary formation of a Re3 gional Transmission Organization or Independent 

4 System Operator (as defined in the Federal Power 

5 Act) (and related market structures or rules) or vol6 untary modification of an existing Regional Trans7 mission Organization or Independent System Oper8 ator (and related market structures or rules). 

9 SEC. 1236. NATIVE LOAD SERVICE OBLIGATION. 

10 Part II of the Federal Power Act (16 U.S.C. 824 et 

11 seq.) is amended by adding at the end the following: 

12 ‘‘SEC. 217. NATIVE LOAD SERVICE OBLIGATION. 

13 ‘‘(a) MEETING SERVICE OBLIGATIONS.—(1) Any load14 serving entity that, as of the date of enactment of this sec15 tion— 

16 ‘‘(A) owns generation facilities, markets the out17 put of Federal generation facilities, or holds rights 

18 under 1 or more wholesale contracts to purchase elec19 tric energy, for the purpose of meeting a service obli20 gation, and 

21 ‘‘(B) by reason of ownership of transmission fa22 cilities, or 1 or more contracts or service agreements 

23 for firm transmission service, holds firm transmission 

24 rights for delivery of the output of such generation fa-
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1 cilities or such purchased energy to meet such service 

2 obligation, 

3 is entitled to use such firm transmission rights, or, equiva4 lent tradable or financial transmission rights, in order to 

5 deliver such output or purchased energy, or the output of 

6 other generating facilities or purchased energy to the extent 

7 deliverable using such rights, to the extent required to meet 

8 its service obligation. 

9 ‘‘(2) To the extent that all or a portion of the service 

10 obligation covered by such firm transmission rights or 

11 equivalent tradable or financial transmission rights is 

12 transferred to another load-serving entity, the successor 

13 load-serving entity shall be entitled to use the firm trans14 mission rights or equivalent tradable or financial trans15 mission rights associated with the transferred service obli16 gation. Subsequent transfers to another load-serving entity, 

17 or back to the original load-serving entity, shall be entitled 

18 to the same rights. 

19 ‘‘(3) The Commission shall exercise its authority under 

20 this Act in a manner that facilitates the planning and ex21 pansion of transmission facilities to meet the reasonable 

22 needs of load-serving entities to satisfy their service obliga23 tions, and enables load-serving entities to secure firm trans24 mission rights (or equivalent tradable or financial rights) 
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1 on a long term basis for long term power supply arrange2 ments made, or planned, to meet such needs. 

3 ‘‘(b) ALLOCATION OF TRANSMISSION RIGHTS.—Noth4 ing in subsections (a)(1) and (a) (2) of this section shall 

5 affect any existing or future methodology employed by an 

6 RTO or ISO for allocating or auctioning transmission 

7 rights if such RTO or ISO was authorized by the Commis8 sion to allocate or auction financial transmission rights on 

9 its system as of January 1, 2005, and the Commission de10 termines that any future allocation or auction is just, rea11 sonable and not unduly discriminatory or preferential, pro12 vided, however, that if such an RTO or ISO never allocated 

13 financial transmission rights on its system that pertained 

14 to a period before January 1, 2005, with respect to any 

15 application by such RTO or ISO that would change its 

16 methodology the Commission shall exercise its authority in 

17 a manner consistent with the Act and the policies expressed 

18 in subsections (a)(1) and (a)(2) as applied to firm trans19 mission rights held by a load serving entity as of January 

20 1, 2005, to the extent the associated generation ownership 

21 or power purchase arrangements remain in effect. 

22 ‘‘(c) CERTAIN TRANSMISSION RIGHTS.—The Commis23 sion may exercise authority under this Act to make trans24 mission rights not used to meet an obligation covered by 

25 subsection (a) available to other entities in a manner deter-
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1 mined by the Commission to be just, reasonable, and not 

2 unduly discriminatory or preferential. 

3 ‘‘(d) OBLIGATION TO BUILD.—Nothing in this Act 

4 shall relieve a load-serving entity from any obligation 

5 under State or local law to build transmission or distribu6 tion facilities adequate to meet its service obligations. 

7 ‘‘(e) CONTRACTS.—Nothing in this section shall pro8 vide a basis for abrogating any contract or service agree9 ment for firm transmission service or rights in effect as of 

10 the date of the enactment of this subsection. If an ISO in 

11 the Western Interconnection had allocated financial trans12 mission rights prior to the date of enactment of this section 

13 but had not done so with respect to one or more load-serving 

14 entities’ firm transmission rights held under contracts to 

15 which the preceding sentence applies (or held by reason of 

16 ownership of transmission facilities), such load-serving en17 tities may not be required, without their consent, to convert 

18 such firm transmission rights to tradable or financial 

19 rights, except where the load-serving entity has voluntarily 

20 joined the ISO as a participating transmission owner (or 

21 its successor) in accordance with the ISO tariff. 

22 ‘‘(f) WATER PUMPING FACILITIES.—The Commission 

23 shall ensure that any entity described in section 201(f) that 

24 owns transmission facilities used predominately to support 

25 its own water pumping facilities shall have, with respect 
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1 to such facilities, protections for transmission service com2 parable to those provided to load-serving entities pursuant 

3 to this section. 

4 ‘‘(g) FERC RULEMAKING ON LONG-TERM TRANS5 MISSION RIGHTS IN ORGANIZED MARKETS.—Within one 

6 year after the date of enactment of this section and after 

7 notice and an opportunity for comment, the Commission 

8 shall by rule or order implement subsection (a)(3) in Com9 mission-approved RTOs and ISOs with organized elec10 tricity markets. 

11 ‘‘(h) ERCOT.—This section shall not apply within the 

12 area referred to in section 212(k)(2)(A). 

13 ‘‘(i) JURISDICTION.—This section does not authorize 

14 the Commission to take any action not otherwise within 

15 its jurisdiction. 

16 ‘‘(j) EFFECT OF EXERCISING RIGHTS.—An entity that 

17 lawfully exercises rights granted under subsection (a) shall 

18 not be considered by such action as engaging in undue dis19 crimination or preference under this Act. 

20 ‘‘(k) TVA AREA.—For purposes of subsection 

21 (a)(1)(B), a load-serving entity that is located within the 

22 service area of the Tennessee Valley Authority and that has 

23 a firm wholesale power supply contract with the Tennessee 

24 Valley Authority shall be deemed to hold firm transmission 

25 rights for the transmission of such power. 
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1 ‘‘(l) DEFINITIONS.—For purposes of this section: 

2 ‘‘(1) The term ‘distribution utility’ means an 

3 electric utility that has a service obligation to end4 users or to a State utility or electric cooperative that, 

5 directly or indirectly, through 1 or more additional 

6 State utilities or electric cooperatives, provides elec7 tric service to end-users. 

8 ‘‘(2) The term ‘load-serving entity’ means a dis9 tribution utility or an electric utility that has a serv10 ice obligation. 

11 ‘‘(3) The term ‘service obligation’ means a re12 quirement applicable to, or the exercise of authority 

13 granted to, an electric utility under Federal, State or 

14 local law or under long-term contracts to provide elec15 tric service to end-users or to a distribution utility. 

16 ‘‘(4) The term ‘State utility’ means a State or 

17 any political subdivision of a State, or any agency, 

18 authority, or instrumentality of any 1 or more of the 

19 foregoing, or a corporation which is wholly owned, di20 rectly or indirectly, by any 1 or more of the foregoing, 

21 competent to carry on the business of developing, 

22 transmitting, utilizing or distributing power.’’. 
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1 SEC. 1237. STUDY ON THE BENEFITS OF ECONOMIC DIS2 PATCH. 

3 (a) STUDY.—The Secretary of Energy, in coordination 

4 and consultation with the States, shall conduct a study 

5 on— 

6 (1) the procedures currently used by electric util7 ities to perform economic dispatch; 

8 (2) identifying possible revisions to those proce9 dures to improve the ability of nonutility generation 

10 resources to offer their output for sale for the purpose 

11 of inclusion in economic dispatch; and 

12 (3) the potential benefits to residential, commer13 cial, and industrial electricity consumers nationally 

14 and in each state if economic dispatch procedures 

15 were revised to improve the ability of nonutility gen16 eration resources to offer their output for inclusion in 

17 economic dispatch. 

18 (b) DEFINITION.—The term ‘‘economic dispatch’’ when 

19 used in this section means the operation of generation fa20 cilities to produce energy at the lowest cost to reliably serve 

21 consumers, recognizing any operational limits of generation 

22 and transmission facilities. 

23 (c) REPORT TO CONGRESS AND THE STATES.—Not 

24 later than 90 days after the date of enactment of this Act, 

25 and on a yearly basis following, the Secretary of Energy 

26 shall submit a report to Congress and the States on the re-
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1 sults of the study conducted under subsection (a), including 

2 recommendations to Congress and the States for any sug3 gested legislative or regulatory changes. 

4 Subtitle D—Transmission Rate 

5 Reform 

6 SEC. 1241. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

7 Part II of the Federal Power Act (16 U.S.C. 824 et 

8 seq.) is amended by adding at the end the following: 

9 ‘‘SEC. 218. TRANSMISSION INFRASTRUCTURE INVESTMENT. 

10 ‘‘(a) RULEMAKING REQUIREMENT.—Within 1 year 

11 after the enactment of this section, the Commission shall 

12 establish, by rule, incentive-based (including, but not lim13 ited to performance-based) rate treatments for the trans14 mission of electric energy in interstate commerce by public 

15 utilities for the purpose of benefiting consumers by ensuring 

16 reliability and reducing the cost of delivered power by re17 ducing transmission congestion. Such rule shall— 

18 ‘‘(1) promote reliable and economically efficient 

19 transmission and generation of electricity by pro20 moting capital investment in the enlargement, im21 provement, maintenance and operation of facilities 

22 for the transmission of electric energy in interstate 

23 commerce; 
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1 ‘‘(2) provide a return on equity that attracts 

2 new investment in transmission facilities (including 

3 related transmission technologies); 

4 ‘‘(3) encourage deployment of transmission tech5 nologies and other measures to increase the capacity 

6 and efficiency of existing transmission facilities and 

7 improve the operation of such facilities; and 

8 ‘‘(4) allow recovery of all prudently incurred 

9 costs necessary to comply with mandatory reliability 

10 standards issued pursuant to section 215 of this Act. 

11 The Commission may, from time to time, revise such rule. 

12 ‘‘(b) ADDITIONAL INCENTIVES FOR RTO PARTICIPA13 TION.—In the rule issued under this section, the Commis14 sion shall, to the extent within its jurisdiction, provide for 

15 incentives to each transmitting utility or electric utility 

16 that joins a Regional Transmission Organization or Inde17 pendent System Operator. Incentives provided by the Com18 mission pursuant to such rule shall include— 

19 ‘‘(1) recovery of all prudently incurred costs to 

20 develop and participate in any proposed or approved 

21 RTO, ISO, or independent transmission company; 

22 ‘‘(2) recovery of all costs previously approved by 

23 a State commission which exercised jurisdiction over 

24 the transmission facilities prior to the utility’s par25 ticipation in the RTO or ISO, including costs nec-
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1 essary to honor preexisting transmission service con2 tracts, in a manner which does not reduce the reve3 nues the utility receives for transmission services for 

4 a reasonable transition period after the utility joins 

5 the RTO or ISO; 

6 ‘‘(3) recovery as an expense in rates of the costs 

7 prudently incurred to conduct transmission planning 

8 and reliability activities, including the costs of par9 ticipating in RTO, ISO and other regional planning 

10 activities and design, study and other precertification 

11 costs involved in seeking permits and approvals for 

12 proposed transmission facilities; 

13 ‘‘(4) a current return in rates for construction 

14 work in progress for transmission facilities and full 

15 recovery of prudently incurred costs for constructing 

16 transmission facilities; 

17 ‘‘(5) formula transmission rates; and 

18 ‘‘(6) a maximum 15 year accelerated deprecia19 tion on new transmission facilities for rate treatment 

20 purposes. 

21 The Commission shall ensure that any costs recoverable 

22 pursuant to this subsection may be recovered by such utility 

23 through the transmission rates charged by such utility or 

24 through the transmission rates charged by the RTO or ISO 

25 that provides transmission service to such utility. 
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1 ‘‘(c) JUST AND REASONABLE RATES.—All rates ap2 proved under the rules adopted pursuant to this section, in3 cluding any revisions to such rules, are subject to the re4 quirement of sections 205 and 206 that all rates, charges, 

5 terms, and conditions be just and reasonable and not un6 duly discriminatory or preferential.’’. 

7 Subtitle E—Amendments to PURPA 

8 SEC. 1251. NET METERING AND ADDITIONAL STANDARDS. 

9 (a) ADOPTION OF STANDARDS.—Section 111(d) of the 

10 Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

11 2621(d)) is amended by adding at the end the following: 

12 ‘‘(11) NET METERING.—Each electric utility 

13 shall make available upon request net metering serv14 ice to any electric consumer that the electric utility 

15 serves. For purposes of this paragraph, the term ‘net 

16 metering service’ means service to an electric con17 sumer under which electric energy generated by that 

18 electric consumer from an eligible on-site generating 

19 facility and delivered to the local distribution facili20 ties may be used to offset electric energy provided by 

21 the electric utility to the electric consumer during the 

22 applicable billing period. 

23 ‘‘(12) FUEL SOURCES.—Each electric utility 

24 shall develop a plan to minimize dependence on 1 fuel 

25 source and to ensure that the electric energy it sells 
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1 to consumers is generated using a diverse range of 

2 fuels and technologies, including renewable tech3 nologies. 

4 ‘‘(13) FOSSIL FUEL GENERATION EFFICIENCY.— 

5 Each electric utility shall develop and implement a 

6 10-year plan to increase the efficiency of its fossil fuel 

7 generation.’’. 

8 (b) COMPLIANCE.— 

9 (1) TIME LIMITATIONS.—Section 112(b) of the 

10 Public Utility Regulatory Policies Act of 1978 (16 

11 U.S.C. 2622(b)) is amended by adding at the end the 

12 following: 

13 ‘‘(3)(A) Not later than 2 years after the enactment of 

14 this paragraph, each State regulatory authority (with re15 spect to each electric utility for which it has ratemaking 

16 authority) and each nonregulated electric utility shall com17 mence the consideration referred to in section 111, or set 

18 a hearing date for such consideration, with respect to each 

19 standard established by paragraphs (11) through (13) of 

20 section 111(d). 

21 ‘‘(B) Not later than 3 years after the date of the enact22 ment of this paragraph, each State regulatory authority 

23 (with respect to each electric utility for which it has rate24 making authority), and each nonregulated electric utility, 

25 shall complete the consideration, and shall make the deter-
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1 mination, referred to in section 111 with respect to each 

2 standard established by paragraphs (11) through (13) of 

3 section 111(d).’’. 

4 (2) FAILURE TO COMPLY.—Section 112(c) of the 

5 Public Utility Regulatory Policies Act of 1978 (16 

6 U.S.C. 2622(c)) is amended by adding at the end the 

7 following: 

8 ‘‘In the case of each standard established by paragraphs 

9 (11) through (13) of section 111(d), the reference contained 

10 in this subsection to the date of enactment of this Act shall 

11 be deemed to be a reference to the date of enactment of such 

12 paragraphs (11) through (13).’’. 

13 (3) PRIOR STATE ACTIONS.— 

14 (A) IN GENERAL.—Section 112 of the Public 

15 Utility Regulatory Policies Act of 1978 (16 

16 U.S.C. 2622) is amended by adding at the end 

17 the following: 

18 ‘‘(d) PRIOR STATE ACTIONS.—Subsections (b) and (c) 

19 of this section shall not apply to the standards established 

20 by paragraphs (11) through (13) of section 111(d) in the 

21 case of any electric utility in a State if, before the enact22 ment of this subsection— 

23 ‘‘(1) the State has implemented for such utility 

24 the standard concerned (or a comparable standard); 
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1 ‘‘(2) the State regulatory authority for such 

2 State or relevant nonregulated electric utility has con3 ducted a proceeding to consider implementation of the 

4 standard concerned (or a comparable standard) for 

5 such utility; or 

6 ‘‘(3) the State legislature has voted on the imple7 mentation of such standard (or a comparable stand8 ard) for such utility.’’. 

9 (B) CROSS REFERENCE.—Section 124 of 

10 such Act (16 U.S.C. 2634) is amended by adding 

11 the following at the end thereof: ‘‘In the case of 

12 each standard established by paragraphs (11) 

13 through (13) of section 111(d), the reference con14 tained in this subsection to the date of enactment 

15 of this Act shall be deemed to be a reference to 

16 the date of enactment of such paragraphs (11) 

17 through (13).’’. 

18 SEC. 1252. SMART METERING. 

19 (a) IN GENERAL.—Section 111(d) of the Public Utility 

20 Regulatory Policies Act of 1978 (16 U.S.C. 2621(d)) is 

21 amended by adding at the end the following: 

22 ‘‘(14) TIME-BASED METERING AND COMMUNICA23 TIONS.— 

24 ‘‘(A) Not later than 18 months after the 

25 date of enactment of this paragraph, each electric 
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1 utility shall offer each of its customer classes, 

2 and provide individual customers upon customer 

3 request, a time-based rate schedule under which 

4 the rate charged by the electric utility varies 

5 during different time periods and reflects the 

6 variance, if any, in the utility’s costs of gener7 ating and purchasing electricity at the wholesale 

8 level. The time-based rate schedule shall enable 

9 the electric consumer to manage energy use and 

10 cost through advanced metering and communica11 tions technology. 

12 ‘‘(B) The types of time-based rate schedules 

13 that may be offered under the schedule referred 

14 to in subparagraph (A) include, among others— 

15 ‘‘(i) time-of-use pricing whereby elec16 tricity prices are set for a specific time pe17 riod on an advance or forward basis, typi18 cally not changing more often than twice a 

19 year, based on the utility’s cost of gener20 ating and/or purchasing such electricity at 

21 the wholesale level for the benefit of the con22 sumer. Prices paid for energy consumed 

23 during these periods shall be pre-established 

24 and known to consumers in advance of such 

25 consumption, allowing them to vary their 
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1 demand and usage in response to such 

2 prices and manage their energy costs by 

3 shifting usage to a lower cost period or re4 ducing their consumption overall; 

5 ‘‘(ii) critical peak pricing whereby 

6 time-of-use prices are in effect except for 

7 certain peak days, when prices may reflect 

8 the costs of generating and/or purchasing 

9 electricity at the wholesale level and when 

10 consumers may receive additional discounts 

11 for reducing peak period energy consump12 tion; 

13 ‘‘(iii) real-time pricing whereby elec14 tricity prices are set for a specific time pe15 riod on an advanced or forward basis, re16 flecting the utility’s cost of generating and/ 

17 or purchasing electricity at the wholesale 

18 level, and may change as often as hourly; 

19 and 

20 ‘‘(iv) credits for consumers with large 

21 loads who enter into pre-established peak 

22 load reduction agreements that reduce a 

23 utility’s planned capacity obligations. 

24 ‘‘(C) Each electric utility subject to sub25 paragraph (A) shall provide each customer re-
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1 questing a time-based rate with a time-based 

2 meter capable of enabling the utility and cus3 tomer to offer and receive such rate, respectively. 

4 ‘‘(D) For purposes of implementing this 

5 paragraph, any reference contained in this sec6 tion to the date of enactment of the Public Util7 ity Regulatory Policies Act of 1978 shall be 

8 deemed to be a reference to the date of enactment 

9 of this paragraph. 

10 ‘‘(E) In a State that permits third-party 

11 marketers to sell electric energy to retail electric 

12 consumers, such consumers shall be entitled to re13 ceive the same time-based metering and commu14 nications device and service as a retail electric 

15 consumer of the electric utility. 

16 ‘‘(F) Notwithstanding subsections (b) and 

17 (c) of section 112, each State regulatory author18 ity shall, not later than 18 months after the date 

19 of enactment of this paragraph conduct an inves20 tigation in accordance with section 115(i) and 

21 issue a decision whether it is appropriate to im22 plement the standards set out in subparagraphs 

23 (A) and (C).’’. 

24 (b) STATE INVESTIGATION OF DEMAND RESPONSE AND

25 TIME-BASED METERING.—Section 115 of the Public Utility 
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1 Regulatory Policies Act of 1978 (16 U.S.C. 2625) is amend2 ed as follows: 

3 (1) By inserting in subsection (b) after the 

4 phrase ‘‘the standard for time-of-day rates established 

5 by section 111(d)(3)’’ the following: ‘‘and the stand6 ard for time-based metering and communications es7 tablished by section 111(d)(14)’’. 

8 (2) By inserting in subsection (b) after the 

9 phrase ‘‘are likely to exceed the metering’’ the fol10 lowing: ‘‘and communications’’. 

11 (3) By adding the at the end the following: 

12 ‘‘(i) TIME-BASED METERING AND COMMUNICA13 TIONS.—In making a determination with respect to the 

14 standard established by section 111(d)(14), the investiga15 tion requirement of section 111(d)(14)(F) shall be as fol16 lows: Each State regulatory authority shall conduct an in17 vestigation and issue a decision whether or not it is appro18 priate for electric utilities to provide and install time-based 

19 meters and communications devices for each of their cus20 tomers which enable such customers to participate in time21 based pricing rate schedules and other demand response 

22 programs.’’. 

23 (c) FEDERAL ASSISTANCE ON DEMAND RESPONSE.— 

24 Section 132(a) of the Public Utility Regulatory Policies Act 

25 of 1978 (16 U.S.C. 2642(a)) is amended by striking ‘‘and’’ 
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1 at the end of paragraph (3), striking the period at the end 

2 of paragraph (4) and inserting ‘‘; and’’, and by adding the 

3 following at the end thereof: 

4 ‘‘(5) technologies, techniques, and rate-making 

5 methods related to advanced metering and commu6 nications and the use of these technologies, techniques 

7 and methods in demand response programs.’’. 

8 (d) FEDERAL GUIDANCE.—Section 132 of the Public 

9 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2642) 

10 is amended by adding the following at the end thereof: 

11 ‘‘(d) DEMAND RESPONSE.—The Secretary shall be re12 sponsible for— 

13 ‘‘(1) educating consumers on the availability, ad14 vantages, and benefits of advanced metering and com15 munications technologies, including the funding of 

16 demonstration or pilot projects; 

17 ‘‘(2) working with States, utilities, other energy 

18 providers and advanced metering and communica19 tions experts to identify and address barriers to the 

20 adoption of demand response programs; and 

21 ‘‘(3) not later than 180 days after the date of en22 actment of the Energy Policy Act of 2005, providing 

23 Congress with a report that identifies and quantifies 

24 the national benefits of demand response and makes 
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1 a recommendation on achieving specific levels of such 

2 benefits by January 1, 2007.’’. 

3 (e) DEMAND RESPONSE AND REGIONAL COORDINA4 TION.— 

5 (1) IN GENERAL.—It is the policy of the United 

6 States to encourage States to coordinate, on a re7 gional basis, State energy policies to provide reliable 

8 and affordable demand response services to the public. 

9 (2) TECHNICAL ASSISTANCE.—The Secretary of 

10 Energy shall provide technical assistance to States 

11 and regional organizations formed by 2 or more 

12 States to assist them in— 

13 (A) identifying the areas with the greatest 

14 demand response potential; 

15 (B) identifying and resolving problems in 

16 transmission and distribution networks, includ17 ing through the use of demand response; 

18 (C) developing plans and programs to use 

19 demand response to respond to peak demand or 

20 emergency needs; and 

21 (D) identifying specific measures consumers 

22 can take to participate in these demand response 

23 programs. 

24 (3) REPORT.—Not later than 1 year after the 

25 date of enactment of the Energy Policy Act of 2005, 
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1 the Commission shall prepare and publish an annual 

2 report, by appropriate region, that assesses demand 

3 response resources, including those available from all 

4 consumer classes, and which identifies and reviews— 

5 (A) saturation and penetration rate of ad6 vanced meters and communications technologies, 

7 devices and systems; 

8 (B) existing demand response programs and 

9 time-based rate programs; 

10 (C) the annual resource contribution of de11 mand resources; 

12 (D) the potential for demand response as a 

13 quantifiable, reliable resource for regional plan14 ning purposes; 

15 (E) steps taken to ensure that, in regional 

16 transmission planning and operations, demand 

17 resources are provided equitable treatment as a 

18 quantifiable, reliable resource relative to the re19 source obligations of any load-serving entity, 

20 transmission provider, or transmitting party; 

21 and 

22 (F) regulatory barriers to improved cus23 tomer participation in demand response, peak 

24 reduction and critical period pricing programs. 
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1 (f) FEDERAL ENCOURAGEMENT OF DEMAND RE2 SPONSE DEVICES.—It is the policy of the United States that 

3 time-based pricing and other forms of demand response, 

4 whereby electricity customers are provided with electricity 

5 price signals and the ability to benefit by responding to 

6 them, shall be encouraged, the deployment of such tech7 nology and devices that enable electricity customers to par8 ticipate in such pricing and demand response systems shall 

9 be facilitated, and unnecessary barriers to demand response 

10 participation in energy, capacity and ancillary service 

11 markets shall be eliminated. It is further the policy of the 

12 United States that the benefits of such demand response that 

13 accrue to those not deploying such technology and devices, 

14 but who are part of the same regional electricity entity, 

15 shall be recognized. 

16 (g) TIME LIMITATIONS.—Section 112(b) of the Public 

17 Utility Regulatory Policies Act of 1978 (16 U.S.C. 2622(b)) 

18 is amended by adding at the end the following: 

19 ‘‘(4)(A) Not later than 1 year after the enact20 ment of this paragraph, each State regulatory author21 ity (with respect to each electric utility for which it 

22 has ratemaking authority) and each nonregulated 

23 electric utility shall commence the consideration re24 ferred to in section 111, or set a hearing date for such 
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1 consideration, with respect to the standard established 

2 by paragraph (14) of section 111(d). 

3 ‘‘(B) Not later than 2 years after the date of the 

4 enactment of this paragraph, each State regulatory 

5 authority (with respect to each electric utility for 

6 which it has ratemaking authority), and each non7 regulated electric utility, shall complete the consider8 ation, and shall make the determination, referred to 

9 in section 111 with respect to the standard established 

10 by paragraph (14) of section 111(d).’’. 

11 (h) FAILURE TO COMPLY.—Section 112(c) of the Pub12 lic Utility Regulatory Policies Act of 1978 (16 U.S.C. 

13 2622(c)) is amended by adding at the end the following: 

14 ‘‘In the case of the standard established by paragraph (14) 

15 of section 111(d), the reference contained in this subsection 

16 to the date of enactment of this Act shall be deemed to be 

17 a reference to the date of enactment of such paragraph 

18 (14).’’. 

19 (i) PRIOR STATE ACTIONS REGARDING SMART ME20 TERING STANDARDS.— 

21 (1) IN GENERAL.—Section 112 of the Public 

22 Utility Regulatory Policies Act of 1978 (16 U.S.C. 

23 2622) is amended by adding at the end the following: 

24 ‘‘(e) PRIOR STATE ACTIONS.—Subsections (b) and (c) 

25 of this section shall not apply to the standard established 
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1 by paragraph (14) of section 111(d) in the case of any elec2 tric utility in a State if, before the enactment of this sub3 section— 

4 ‘‘(1) the State has implemented for such utility 

5 the standard concerned (or a comparable standard); 

6 ‘‘(2) the State regulatory authority for such 

7 State or relevant nonregulated electric utility has con8 ducted a proceeding to consider implementation of the 

9 standard concerned (or a comparable standard) for 

10 such utility within the previous 3 years; or 

11 ‘‘(3) the State legislature has voted on the imple12 mentation of such standard (or a comparable stand13 ard) for such utility within the previous 3 years.’’. 

14 (2) CROSS REFERENCE.—Section 124 of such Act 

15 (16 U.S.C. 2634) is amended by adding the following 

16 at the end thereof: ‘‘In the case of the standard estab17 lished by paragraph (14) of section 111(d), the ref18 erence contained in this subsection to the date of en19 actment of this Act shall be deemed to be a reference 

20 to the date of enactment of such paragraph (14).’’. 

21 SEC. 1253. COGENERATION AND SMALL POWER PRODUC22 TION PURCHASE AND SALE REQUIREMENTS. 

23 (a) TERMINATION OF MANDATORY PURCHASE AND

24 SALE REQUIREMENTS.—Section 210 of the Public Utility 
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1 Regulatory Policies Act of 1978 (16 U.S.C. 824a–3) is 

2 amended by adding at the end the following: 

3 ‘‘(m) TERMINATION OF MANDATORY PURCHASE AND

4 SALE REQUIREMENTS.— 

5 ‘‘(1) OBLIGATION TO PURCHASE.—After the date 

6 of enactment of this subsection, no electric utility 

7 shall be required to enter into a new contract or obli8 gation to purchase electric energy from a qualifying 

9 cogeneration facility or a qualifying small power pro10 duction facility under this section if the Commission 

11 finds that the qualifying cogeneration facility or 

12 qualifying small power production facility has non13 discriminatory access to— 

14 ‘‘(A)(i) independently administered, auc15 tion-based day ahead and real time wholesale 

16 markets for the sale of electric energy; and (ii) 

17 wholesale markets for long-term sales of capacity 

18 and electric energy; or 

19 ‘‘(B)(i) transmission and interconnection 

20 services that are provided by a Commission-ap21 proved regional transmission entity and admin22 istered pursuant to an open access transmission 

23 tariff that affords nondiscriminatory treatment 

24 to all customers; and (ii) competitive wholesale 

25 markets that provide a meaningful opportunity 
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1 to sell capacity, including long-term and short2 term sales, and electric energy, including long3 term, short-term and real-time sales, to buyers 

4 other than the utility to which the qualifying fa5 cility is interconnected. In determining whether 

6 a meaningful opportunity to sell exists, the Com7 mission shall consider, among other factors, evi8 dence of transactions within the relevant market; 

9 or 

10 ‘‘(C) wholesale markets for the sale of capac11 ity and electric energy that are, at a minimum, 

12 of comparable competitive quality as markets de13 scribed in subparagraphs (A) and (B). 

14 ‘‘(2) REVISED PURCHASE AND SALE OBLIGATION

15 FOR NEW FACILITIES.—(A) After the date of enact16 ment of this subsection, no electric utility shall be re17 quired pursuant to this section to enter into a new 

18 contract or obligation to purchase from or sell electric 

19 energy to a facility that is not an existing qualifying 

20 cogeneration facility unless the facility meets the cri21 teria for qualifying cogeneration facilities established 

22 by the Commission pursuant to the rulemaking re23 quired by subsection (n). 
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1 ‘‘(B) For the purposes of this paragraph, the 

2 term ‘existing qualifying cogeneration facility’ means 

3 a facility that— 

4 ‘‘(i) was a qualifying cogeneration facility 

5 on the date of enactment of subsection (m); or 

6 ‘‘(ii) had filed with the Commission a no7 tice of self-certification, self recertification or an 

8 application for Commission certification under 

9 18 C.F.R. 292.207 prior to the date on which the 

10 Commission issues the final rule required by sub11 section (n). 

12 ‘‘(3) COMMISSION REVIEW.—Any electric utility 

13 may file an application with the Commission for re14 lief from the mandatory purchase obligation pursuant 

15 to this subsection on a service territory-wide basis. 

16 Such application shall set forth the factual basis upon 

17 which relief is requested and describe why the condi18 tions set forth in subparagraphs (A), (B) or (C) of 

19 paragraph (1) of this subsection have been met. After 

20 notice, including sufficient notice to potentially af21 fected qualifying cogeneration facilities and quali22 fying small power production facilities, and an op23 portunity for comment, the Commission shall make a 

24 final determination within 90 days of such applica25 tion regarding whether the conditions set forth in sub-
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1 paragraphs (A), (B) or (C) of paragraph (1) have 

2 been met. 

3 ‘‘(4) REINSTATEMENT OF OBLIGATION TO PUR4 CHASE.—At any time after the Commission makes a 

5 finding under paragraph (3) relieving an electric 

6 utility of its obligation to purchase electric energy, a 

7 qualifying cogeneration facility, a qualifying small 

8 power production facility, a State agency, or any 

9 other affected person may apply to the Commission 

10 for an order reinstating the electric utility’s obliga11 tion to purchase electric energy under this section. 

12 Such application shall set forth the factual basis upon 

13 which the application is based and describe why the 

14 conditions set forth in subparagraphs (A), (B) or (C) 

15 of paragraph (1) of this subsection are no longer met. 

16 After notice, including sufficient notice to potentially 

17 affected utilities, and opportunity for comment, the 

18 Commission shall issue an order within 90 days of 

19 such application reinstating the electric utility’s obli20 gation to purchase electric energy under this section 

21 if the Commission finds that the conditions set forth 

22 in subparagraphs (A), (B) or (C) of paragraph (1) 

23 which relieved the obligation to purchase, are no 

24 longer met. 
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1 ‘‘(5) OBLIGATION TO SELL.—After the date of en2 actment of this subsection, no electric utility shall be 

3 required to enter into a new contract or obligation to 

4 sell electric energy to a qualifying cogeneration facil5 ity or a qualifying small power production facility 

6 under this section if the Commission finds that— 

7 ‘‘(A) competing retail electric suppliers are 

8 willing and able to sell and deliver electric en9 ergy to the qualifying cogeneration facility or 

10 qualifying small power production facility; and 

11 ‘‘(B) the electric utility is not required by 

12 State law to sell electric energy in its service ter13 ritory. 

14 ‘‘(6) NO EFFECT ON EXISTING RIGHTS AND REM15 EDIES.—Nothing in this subsection affects the rights 

16 or remedies of any party under any contract or obli17 gation, in effect or pending approval before the ap18 propriate State regulatory authority or non-regulated 

19 electric utility on the date of enactment of this sub20 section, to purchase electric energy or capacity from 

21 or to sell electric energy or capacity to a qualifying 

22 cogeneration facility or qualifying small power pro23 duction facility under this Act (including the right to 

24 recover costs of purchasing electric energy or capac25 ity). 
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1 ‘‘(7) RECOVERY OF COSTS.—(A) The Commission 

2 shall issue and enforce such regulations as are nec3 essary to ensure that an electric utility that purchases 

4 electric energy or capacity from a qualifying cogen5 eration facility or qualifying small power production 

6 facility in accordance with any legally enforceable ob7 ligation entered into or imposed under this section re8 covers all prudently incurred costs associated with the 

9 purchase. 

10 ‘‘(B) A regulation under subparagraph (A) shall 

11 be enforceable in accordance with the provisions of 

12 law applicable to enforcement of regulations under the 

13 Federal Power Act (16 U.S.C. 791a et seq.). 

14 ‘‘(n) RULEMAKING FOR NEW QUALIFYING FACILI15 TIES.—(1)(A) Not later than 180 days after the date of en16 actment of this section, the Commission shall issue a rule 

17 revising the criteria in 18 C.F.R. 292.205 for new quali18 fying cogeneration facilities seeking to sell electric energy 

19 pursuant to section 210 of this Act to ensure— 

20 ‘‘(i) that the thermal energy output of a new 

21 qualifying cogeneration facility is used in a produc22 tive and beneficial manner; 

23 ‘‘(ii) the electrical, thermal, and chemical output 

24 of the cogeneration facility is used fundamentally for 

25 industrial, commercial, or institutional purposes and 
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1 is not intended fundamentally for sale to an electric 

2 utility, taking into account technological, efficiency, 

3 economic, and variable thermal energy requirements, 

4 as well as State laws applicable to sales of electric en5 ergy from a qualifying facility to its host facility; 

6 and 

7 ‘‘(iii) continuing progress in the development of 

8 efficient electric energy generating technology. 

9 ‘‘(B) The rule issued pursuant to paragraph (1)(A) of 

10 this subsecvtion shall be applicable only to facilities that 

11 seek to sell electric energy pursuant to section 210 of this 

12 Act. For all other purposes, except as specifically provided 

13 in subsection (m)(2)(A), qualifying facility status shall be 

14 determined in accordance with the rules and regulations of 

15 this Act. 

16 ‘‘(2) Notwithstanding rule revisions under paragraph 

17 (1), the Commission’s criteria for qualifying cogeneration 

18 facilities in effect prior to the date on which the Commis19 sion issues the final rule required by paragraph (1) shall 

20 continue to apply to any cogeneration facility that— 

21 ‘‘(A) was a qualifying cogeneration facility on 

22 the date of enactment of subsection (m), or 

23 ‘‘(B) had filed with the Commission a notice of 

24 self-certification, self-recertification or an application 

25 for Commission certification under 18 C.F.R. 292.207 
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1 prior to the date on which the Commission issues the 

2 final rule required by paragraph (1).’’. 

3 (b) ELIMINATION OF OWNERSHIP LIMITATIONS.— 

4 (1) QUALIFYING SMALL POWER PRODUCTION FA5 CILITY.—Section 3(17)(C) of the Federal Power Act 

6 (16 U.S.C. 796(17)(C)) is amended to read as follows: 

7 ‘‘(C) ‘qualifying small power production fa8 cility’ means a small power production facility 

9 that the Commission determines, by rule, meets 

10 such requirements (including requirements re11 specting fuel use, fuel efficiency, and reliability) 

12 as the Commission may, by rule, prescribe;’’. 

13 (2) QUALIFYING COGENERATION FACILITY.—Sec14 tion 3(18)(B) of the Federal Power Act (16 U.S.C. 

15 796(18)(B)) is amended to read as follows: 

16 ‘‘(B) ‘qualifying cogeneration facility’ 

17 means a cogeneration facility that the Commis18 sion determines, by rule, meets such requirements 

19 (including requirements respecting minimum 

20 size, fuel use, and fuel efficiency) as the Commis21 sion may, by rule, prescribe;’’. 

22 SEC. 1254. INTERCONNECTION. 

23 (a) ADOPTION OF STANDARDS.—Section 111(d) of the 

24 Public Utility Regulatory Policies Act of 1978 (16 U.S.C. 

25 2621 (d) ) is amended by adding at the end the following: 
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1 ‘‘(16) INTERCONNECTION.—Each electric utility 

2 shall make available, upon request, interconnection 

3 service to any electric consumer that the electric util4 ity serves. For purposes of this paragraph, the term 

5 ‘interconnection service’ means service to an electric 

6 consumer under which an on-site generating facility 

7 on the consumer’s premises shall be connected to the 

8 local distribution facilities. Interconnection services 

9 shall be offered based upon the standards developed by 

10 the Institute of Electrical and Electronics Engineers: 

11 IEEE Standard 1547 for Interconnecting Distributed 

12 Resources with Electric Power Systems, as they may 

13 be amended from time to time. In addition, agree14 ments and procedures shall be established whereby the 

15 services are offered shall promote current best prac16 tices of interconnection for distributed generation, in17 cluding but not limited to practices stipulated in 

18 model codes adopted by associations of state regu19 latory agencies. All such agreements and procedures 

20 shall be just and reasonable, and not unduly dis21 criminatory or preferential.’’. 

22 (b) COMPLIANCE.— 

23 (1) TIME LIMITATIONS.—Section 112(b) of the 

24 Public Utility Regulatory Policies Act of 1978 (16 
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1 U.S.C. 2622(b)) is amended by adding at the end the 

2 following: 

3 ‘‘(5)(A) Not later than one year after the enact4 ment of this paragraph, each State regulatory author5 ity (with respect to each electric utility for which it 

6 has ratemaking authority) and each nonregulated 

7 utility shall commence the consideration referred to in 

8 section 111, or set a hearing date for consideration, 

9 with respect to the standard established by paragraph 

10 (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 regu13 latory 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, referred 

17 to in section 111 with respect to each standard estab18 lished by paragraph (16) of section 111(d).’’. 

19 (2) FAILURE TO COMPLY.—Section 112 (d) of the 

20 Public Utility Regulatory Policies Act of 1978 (16 

21 U.S.C. 2622 (c)) is amended by adding at the end the 

22 following: ‘‘In the case of the standard established by 

23 paragraph (16), the reference contained in this sub24 section to the date of enactment of this Act shall be 
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1 deemed to be a reference to the date of enactment of 

2 paragraph (16).’’. 

3 (3) PRIOR STATE ACTIONS.— 

4 (A) IN GENERAL.—Section 112 of the Public 

5 Utility Regulatory Policies Act of 1978 (16 

6 U.S.C. 2622) is amended by adding at the end 

7 the following: 

8 ‘‘(f) PRIOR STATE ACTIONS.—Subsections (b) and (c) 

9 of this section shall not apply to the standards established 

10 by paragraph (16) of section 111(d) in the case of any elec11 tric utility in a State if, before the enactment of this sub12 section— 

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 con17 ducted a proceeding to consider implementation of the 

18 standard concerned (or a comparable standard) for 

19 such utility; or 

20 ‘‘(3) the State legislature has voted on the imple21 mentation of such standard (or a comparable stand22 ard) for such utility.’’. 

23 (B) CROSS REFERENCE.—Section 124 of 

24 such Act (16 U.S.C. 2634) is amended by adding 

25 the following at the end thereof: ‘‘In the case of 
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1 each standard established by paragraph (16) of 

2 section 111(d), the reference contained in this 

3 subsection to the date of enactment of the Act 

4 shall be deemed to be a reference to the date of 

5 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 Hold9 ing 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, con15 trolled, or held with power to vote, directly or indi16 rectly, 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 com24 pany, business trust, or any organized group of per-
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1 sons, whether incorporated or not, or a receiver, trust2 ee, or other liquidating agent of any of the foregoing. 

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 FOR9 EIGN UTILITY COMPANY.—The terms ‘‘exempt whole10 sale generator’’ and ‘‘foreign utility company’’ have 

11 the same meanings as in sections 32 and 33, respec12 tively, of the Public Utility Holding Company Act of 

13 1935 (15 U.S.C. 79z–5a, 79z–5b), as those sections ex14 isted on the day before the effective date of this sub15 title. 

16 (7) GAS UTILITY COMPANY.—The term ‘‘gas util17 ity company’’ means any company that owns or op18 erates facilities used for distribution at retail (other 

19 than the distribution only in enclosed portable con20 tainers or distribution to tenants or employees of the 

21 company operating such facilities for their own use 

22 and not for resale) of natural or manufactured gas for 

23 heat, light, or power. 

24 (8) HOLDING COMPANY.—The term ‘‘holding 

25 company’’ means— 
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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 securi4 ties of a public-utility company or of a holding 

5 company of any public-utility company; and 

6 (B) any person, determined by the Commis7 sion, after notice and opportunity for hearing, to 

8 exercise directly or indirectly (either alone or 

9 pursuant to an arrangement or understanding 

10 with 1 or more persons) such a controlling influ11 ence over the management or policies of any 

12 public-utility company or holding company as to 

13 make it necessary or appropriate for the rate 

14 protection of utility customers with respect to 

15 rates that such person be subject to the obliga16 tions, duties, and liabilities imposed by this sub17 title 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 ‘‘juris22 dictional rates’’ means rates accepted or established 

23 by the Commission for the transmission of electric en24 ergy in interstate commerce, the sale of electric energy 

25 at wholesale in interstate commerce, the transpor-
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1 tation of natural gas in interstate commerce, and the 

2 sale in interstate commerce of natural gas for resale 

3 for ultimate public consumption for domestic, com4 mercial, industrial, or any other use. 

5 (11) NATURAL GAS COMPANY.—The term ‘‘nat6 ural gas company’’ means a person engaged in the 

7 transportation of natural gas in interstate commerce 

8 or the sale of such gas in interstate commerce for re9 sale. 

10 (12) PERSON.—The term ‘‘person’’ means an in11 dividual or company. 

12 (13) PUBLIC UTILITY.—The term ‘‘public util13 ity’’ means any person who owns or operates facilities 

14 used for transmission of electric energy in interstate 

15 commerce or sales of electric energy at wholesale in 

16 interstate commerce. 

17 (14) PUBLIC-UTILITY COMPANY.—The term ‘‘pub18 lic-utility company’’ means an electric utility com19 pany or a gas utility company. 

20 (15) STATE COMMISSION.—The term ‘‘State com21 mission’’ means any commission, board, agency, or 

22 officer, by whatever name designated, of a State, mu23 nicipality, or other political subdivision of a State 

24 that, under the laws of such State, has jurisdiction to 

25 regulate public utility companies. 
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1 (16) SUBSIDIARY COMPANY.—The term ‘‘sub2 sidiary company’’ of a holding company means— 

3 (A) any company, 10 percent or more of the 

4 outstanding voting securities of which are di5 rectly or indirectly owned, controlled, or held 

6 with power to vote, by such holding company; 

7 and 

8 (B) any person, the management or policies 

9 of which the Commission, after notice and oppor10 tunity for hearing, determines to be subject to a 

11 controlling influence, directly or indirectly, by 

12 such holding company (either alone or pursuant 

13 to an arrangement or understanding with 1 or 

14 more other persons) so as to make it necessary 

15 for the rate protection of utility customers with 

16 respect to rates that such person be subject to the 

17 obligations, duties, and liabilities imposed by 

18 this subtitle upon subsidiary companies of hold19 ing companies. 

20 (17) VOTING SECURITY.—The term ‘‘voting secu21 rity’’ means any security presently entitling the 

22 owner or holder thereof to vote in the direction or 

23 management of the affairs of a company. 
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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 are 

10 relevant to costs incurred by a public utility or natural gas 

11 company that is an associate company of such holding com12 pany and necessary or appropriate for the protection of 

13 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 in20 curred by a public utility or natural gas company that is 

21 an associate company of such holding company and nec22 essary or appropriate for the protection of utility customers 

23 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 
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1 any affiliate thereof, as the Commission determines are rel2 evant to costs incurred by a public utility or natural gas 

3 company within such holding company system and nec4 essary or appropriate for the protection of utility customers 

5 with respect to jurisdictional rates. 

6 (d) CONFIDENTIALITY.—No member, officer, or em7 ployee of the Commission shall divulge any fact or informa8 tion 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 be 

11 directed by the Commission or by a court of competent ju12 risdiction. 

13 SEC. 1265. STATE ACCESS TO BOOKS AND RECORDS. 

14 (a) IN GENERAL.—Upon the written request of a State 

15 commission having jurisdiction to regulate a public-utility 

16 company in a holding company system, the holding com17 pany or any associate company or affiliate thereof, other 

18 than such public-utility company, wherever located, shall 

19 produce for inspection books, accounts, memoranda, and 

20 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 relevant 

24 to costs incurred by such public-utility company; and 
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1 (3) are necessary for the effective discharge of the 

2 responsibilities of the State commission with respect 

3 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. 2601 

8 et seq.). 

9 (c) CONFIDENTIALITY OF INFORMATION.—The produc10 tion of books, accounts, memoranda, and other records 

11 under subsection (a) shall be subject to such terms and con12 ditions as may be necessary and appropriate to safeguard 

13 against unwarranted disclosure to the public of any trade 

14 secrets or sensitive commercial information. 

15 (d) EFFECT ON STATE LAW.—Nothing in this section 

16 shall preempt applicable State law concerning the provision 

17 of books, accounts, memoranda, and other records, or in any 

18 way limit the rights of any State to obtain books, accounts, 

19 memoranda, and other records under any other Federal 

20 law, contract, or otherwise. 

21 (e) COURT JURISDICTION.—Any United States district 

22 court located in the State in which the State commission 

23 referred to in subsection (a) is located shall have jurisdic24 tion to enforce compliance with this section. 
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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 a 

4 final rule to exempt from the requirements of section 1264 

5 (relating to Federal access to books and records) any person 

6 that is a holding company, solely with respect to 1 or 

7 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 sec15 tion 1264 (relating to Federal access to books and records) 

16 if, upon application or upon the motion of the Commis17 sion— 

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 public 

21 utility or natural gas company; or 

22 (2) the Commission finds that any class of trans23 actions is not relevant to the jurisdictional rates of a 

24 public utility or natural gas company. 
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1 SEC. 1267. AFFILIATE TRANSACTIONS. 

2 (a) COMMISSION AUTHORITY UNAFFECTED.—Nothing 

3 in this subtitle shall limit the authority of the Commission 

4 under the Federal Power Act (16 U.S.C. 791a et seq.) to 

5 require that jurisdictional rates are just and reasonable, in6 cluding the ability to deny or approve the pass through of 

7 costs, the prevention of cross-subsidization, and the issuance 

8 of such rules and regulations as are necessary or appro9 priate 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 oper26 ating in the United States; 
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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 Act 

14 (16 U.S.C. 825e–825p) to enforce the provisions of this sub15 title. 

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 person 

23 continues to comply with the terms (other than an expira24 tion date or termination date) of any such authorization, 

25 whether by rule or by order. 
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1 (b) EFFECT ON OTHER COMMISSION AUTHORITY.— 

2 Nothing in this subtitle limits the authority of the Commis3 sion under the Federal Power Act (16 U.S.C. 791a et seq.) 

4 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 or 

9 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 recommendations 

13 on technical and conforming amendments to Federal 

14 law necessary to carry out this subtitle and the 

15 amendments made by this subtitle. 

16 SEC. 1273. TRANSFER OF RESOURCES. 

17 All books and records that relate primarily to the func18 tions transferred to the Commission under this subtitle shall 

19 be transferred from the Securities and Exchange Commis20 sion 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 months 

24 after the date of enactment of this subtitle. 
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1 (b) COMPLIANCE WITH CERTAIN RULES.—If the Com2 mission approves and makes effective any final rulemaking 

3 modifying the standards of conduct governing entities that 

4 own, operate, or control facilities for transmission of elec5 tricity in interstate commerce or transportation of natural 

6 gas in interstate commerce prior to the effective date of this 

7 subtitle, any action taken by a public-utility company or 

8 utility holding company to comply with the requirements 

9 of such rulemaking shall not subject such public-utility com10 pany or utility holding company to any regulatory require11 ment applicable to a holding company under the Public 

12 Utility Holding Company Act of 1935 (15 U.S.C. 79 et 

13 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 of 

18 providing such goods or services to any public utility in 

19 the same holding company system, at the election of the sys20 tem or a State commission having jurisdiction over the pub21 lic utility, the Commission, after the effective date of this 

22 subtitle, shall review and authorize the allocation of the 

23 costs for such goods or services to the extent relevant to that 

24 associate company in order to assure that each allocation 
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1 is appropriate for the protection of investors and consumers 

2 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 by 

10 such public utility from an associate company organized 

11 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 term 

22 ‘‘public utility’’ has the meaning given that term in section 

23 201(e) of the Federal Power Act. 
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1 SEC. 1276. AUTHORIZATION OF APPROPRIATIONS. 

2 There are authorized to be appropriated such funds as 

3 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 the 

22 date of enactment of this section, the Commission shall issue 

23 rules establishing an electronic information system to pro24 vide the Commission and the public with access to such in25 formation as is necessary or appropriate to facilitate price 

26 transparency and participation in markets subject to the 
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1 Commission’s jurisdiction under this Act. Such systems 

2 shall provide information about the availability and market 

3 price of wholesale electric energy and transmission services 

4 to the Commission, State commissions, buyers and sellers 

5 of wholesale electric energy, users of transmission services, 

6 and the public on a timely basis. The Commission shall 

7 have authority to obtain such information from any electric 

8 utility or transmitting utility, including any entity de9 scribed 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 market 

13 or jeopardize system security. This section shall not apply 

14 to transactions for the purchase or sale of wholesale electric 

15 energy or transmission services within the area described 

16 in section 212(k)(2)(A). In determining the information to 

17 be made available under this section and time to make such 

18 information available, the Commission shall seek to ensure 

19 that consumers and competitive markets are protected from 

20 the adverse effects of potential collusion or other anti-com21 petitive behaviors that can be facilitated by untimely public 

22 disclosure of transaction-specific information. 

23 ‘‘(c) COMMODITY FUTURES TRADING COMMISSION.— 

24 This section shall not affect the exclusive jurisdiction of the 

25 Commodity Futures Trading Commission with respect to 
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1 accounts, agreements, contracts, or transactions in commod2 ities under the Commodity Exchange Act (7 U.S.C. 1 et 

3 seq.). 

4 ‘‘(d) SAVINGS PROVISION.—In exercising its authority 

5 under this section, the Commission shall not— 

6 ‘‘(1) compete with, or displace from the market 

7 place, any price publisher; or 

8 ‘‘(2) regulate price publishers or impose any re9 quirements on the publication of information.’’. 

10 SEC. 1282. MARKET MANIPULATION. 

11 Part II of the Federal Power Act (16 U.S.C. 824 et 

12 seq.) is amended by adding at the end the following: 

13 ‘‘SEC. 221. PROHIBITION ON FILING FALSE INFORMATION. 

14 ‘‘No person or other entity (including an entity de15 scribed in section 201(f)) shall willfully and knowingly re16 port any information relating to the price of electricity sold 

17 at wholesale or availability of transmission capacity, which 

18 information the person or any other entity knew to be false 

19 at the time of the reporting, to a Federal agency with intent 

20 to fraudulently affect the data being compiled by such Fed21 eral agency. 

22 ‘‘SEC. 222. PROHIBITION ON ROUND TRIP TRADING. 

23 ‘‘(a) PROHIBITION.—No person or other entity (includ24 ing an entity described in section 201(f)) shall willfully and 

25 knowingly enter into any contract or other arrangement to 
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1 execute a ‘round trip trade’ for the purchase or sale of elec2 tric energy at wholesale. 

3 ‘‘(b) DEFINITION.—For the purposes of this section, the 

4 term ‘round trip trade’ means a transaction, or combina5 tion of transactions, in which a person or any other enti6 ty— 

7 ‘‘(1) enters into a contract or other arrangement 

8 to purchase from, or sell to, any other person or other 

9 entity electric energy at wholesale; 

10 ‘‘(2) simultaneously with entering into the con11 tract or arrangement described in paragraph (1), ar12 ranges a financially offsetting trade with such other 

13 person or entity for the same such electric energy, at 

14 the same location, price, quantity and terms so that, 

15 collectively, the purchase and sale transactions in 

16 themselves result in no financial gain or loss; and 

17 ‘‘(3) enters into the contract or arrangement 

18 with a specific intent to fraudulently affect reported 

19 revenues, trading volumes, or prices.’’. 

20 SEC. 1283. ENFORCEMENT. 

21 (a) COMPLAINTS.—Section 306 of the Federal Power 

22 Act (16 U.S.C. 825e) is amended as follows: 

23 (1) By inserting ‘‘electric utility,’’ after ‘‘Any 

24 person,’’. 
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1 (2) By inserting ‘‘, transmitting utility,’’ after 

2 ‘‘licensee’’ each place it appears. 

3 (b) REVIEW OF COMMISSION ORDERS.—Section 313(a) 

4 of the Federal Power Act (16 U.S.C. 8251) is amended by 

5 inserting ‘‘electric utility,’’ after ‘‘person,’’ in the first 2 

6 places it appears and by striking ‘‘any person unless such 

7 person’’ and inserting ‘‘any entity unless such entity’’. 

8 (c) INVESTIGATIONS.—Section 307(a) of the Federal 

9 Power Act (16 U.S.C. 825f(a)) is amended as follows: 

10 (1) By inserting ‘‘, electric utility, transmitting 

11 utility, or other entity’’ after ‘‘person’’ each time it 

12 appears. 

13 (2) By striking the period at the end of the first 

14 sentence and inserting the following: ‘‘or in obtaining 

15 information about the sale of electric energy at whole16 sale in interstate commerce and the transmission of 

17 electric energy in interstate commerce.’’. 

18 (d) CRIMINAL PENALTIES.—Section 316 of the Federal 

19 Power Act (16 U.S.C. 825o) is amended— 

20 (1) in subsection (a), by striking ‘‘$5,000’’ and 

21 inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’ 

22 and inserting ‘‘5 years’’; 

23 (2) in subsection (b), by striking ‘‘$500’’ and in24 serting ‘‘$25,000’’; and 

25 (3) by striking subsection (c). 
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1 (e) CIVIL PENALTIES.—Section 316A of the Federal 

2 Power Act (16 U.S.C. 825o–1) is amended as follows: 

3 (1) In subsections (a) and (b), by striking ‘‘sec4 tion 211, 212, 213, or 214’’ each place it appears and 

5 inserting ‘‘Part II’’. 

6 (2) In subsection (b), by striking ‘‘$10,000’’ and 

7 inserting ‘‘$1,000,000’’. 

8 SEC. 1284. REFUND EFFECTIVE DATE. 

9 Section 206(b) of the Federal Power Act (16 U.S.C. 

10 824e(b)) is amended as follows: 

11 (1) By striking ‘‘the date 60 days after the filing 

12 of such complaint nor later than 5 months after the 

13 expiration of such 60-day period’’ in the second sen14 tence and inserting ‘‘the date of the filing of such 

15 complaint nor later than 5 months after the filing of 

16 such complaint’’. 

17 (2) By striking ‘‘60 days after’’ in the third sen18 tence and inserting ‘‘of’’. 

19 (3) By striking ‘‘expiration of such 60-day pe20 riod’’ in the third sentence and inserting ‘‘publication 

21 date’’. 

22 (4) By striking the fifth sentence and inserting 

23 the following: ‘‘If no final decision is rendered by the 

24 conclusion of the 180-day period commencing upon 

25 initiation of a proceeding pursuant to this section, 
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1 the Commission shall state the reasons why it has 

2 failed to do so and shall state its best estimate as to 

3 when it reasonably expects to make such decision.’’. 

4 SEC. 1285. REFUND AUTHORITY. 

5 Section 206 of the Federal Power Act (16 U.S.C. 824e) 

6 is amended by adding the following new subsection at the 

7 end thereof: 

8 ‘‘(e)(1) Except as provided in paragraph (2), if an en9 tity described in section 201(f) voluntarily makes a short10 term sale of electric energy and the sale violates Commission 

11 rules in effect at the time of the sale, such entity shall be 

12 subject to the Commission’s refund authority under this sec13 tion with respect to such violation. 

14 ‘‘(2) This section shall not apply to— 

15 ‘‘(A) any entity that sells less than 8,000,000 

16 megawatt hours of electricity per year; or 

17 ‘‘(B) any electric cooperative. 

18 ‘‘(3) For purposes of this subsection, the term ‘short19 term sale’ means an agreement for the sale of electric energy 

20 at wholesale in interstate commerce that is for a period of 

21 31 days or less (excluding monthly contracts subject to auto22 matic renewal). 

23 ‘‘(4) The Commission shall have refund authority 

24 under subsection (e)(1) with respect to a voluntary short25 term sale of electric energy by the Bonneville Power Admin-
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1 istration (in this section ‘Bonneville’) only if the sale is 

2 at an unjust and unreasonable rate and, in that event, may 

3 order a refund only for short-term sales made by Bonneville 

4 at rates that are higher than the highest just and reasonable 

5 rate charged by any other entity for a short-term sale of 

6 electric energy in the same geographic market for the same, 

7 or most nearly comparable, period as the sale by Bonneville. 

8 ‘‘(5) With respect to any Federal power marketing 

9 agency or the Tennessee Valley Authority, the Commission 

10 shall not assert or exercise any regulatory authority or pow11 ers under subsection (e)(1) other than the ordering of re12 funds to achieve a just and reasonable rate.’’. 

13 SEC. 1286. SANCTITY OF CONTRACT. 

14 (a) IN GENERAL.—The Federal Energy Regulatory 

15 Commission (in this section, ‘‘the Commission’’) shall have 

16 no authority to abrogate or modify any provision of an exe17 cuted contract or executed contract amendment described in 

18 subsection (b) that has been entered into or taken effect, ex19 cept upon a finding that failure to take such action would 

20 be contrary to the public interest. 

21 (b) LIMITATION.—Except as provided in subsection 

22 (c), this section shall apply only to a contract or contract 

23 amendment— 

24 (1) executed on or after the date of enactment of 

25 this Act; and 
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1 (2) entered into— 

2 (A) for the purchase or sale of electric en3 ergy under section 205 of the Federal Power Act 

4 (16 U.S.C. 824d) where the seller has been au5 thorized by the Commission to charge market6 based rates; or 

7 (B) under section 4 of the Natural Gas Act 

8 (15 U.S.C. 717c) where the natural gas company 

9 has been authorized by the Commission to charge 

10 market-based rates for the service described in 

11 the contract. 

12 (c) EXCLUSION.—This section shall not apply to an 

13 executed contract or executed contract amendment that ex14 pressly provides for a standard of review other than the 

15 public interest standard. 

16 (d) SAVINGS PROVISION.—With respect to contracts to 

17 which this section does not apply, nothing in this section 

18 alters existing law regarding the applicable standard of re19 view for a contract subject to the jurisdiction of the Com20 mission. 

21 SEC. 1287. CONSUMER PRIVACY AND UNFAIR TRADE PRAC22 TICES. 

23 (a) PRIVACY.—The Federal Trade Commission may 

24 issue rules protecting the privacy of electric consumers from 

25 the disclosure of consumer information obtained in connec-
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1 tion with the sale or delivery of electric energy to electric 

2 consumers. 

3 (b) SLAMMING.—The Federal Trade Commission may 

4 issue rules prohibiting the change of selection of an electric 

5 utility except with the informed consent of the electric con6 sumer or if approved by the appropriate State regulatory 

7 authority. 

8 (c) CRAMMING.—The Federal Trade Commission may 

9 issue rules prohibiting the sale of goods and services to an 

10 electric consumer unless expressly authorized by law or the 

11 electric consumer. 

12 (d) RULEMAKING.—The Federal Trade Commission 

13 shall proceed in accordance with section 553 of title 5, 

14 United States Code, when prescribing a rule under this sec15 tion. 

16 (e) STATE AUTHORITY.—If the Federal Trade Com17 mission determines that a State’s regulations provide equiv18 alent or greater protection than the provisions of this sec19 tion, such State regulations shall apply in that State in 

20 lieu of the regulations issued by the Commission under this 

21 section. 

22 (f) DEFINITIONS.—For purposes of this section: 

23 (1) STATE REGULATORY AUTHORITY.—The term 

24 ‘‘State regulatory authority’’ has the meaning given 
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1 that term in section 3(21) of the Federal Power Act 

2 (16 U.S.C. 796(21)). 

3 (2) ELECTRIC CONSUMER AND ELECTRIC UTIL4 ITY.—The terms ‘‘electric consumer’’ and ‘‘electric 

5 utility’’ have the meanings given those terms in sec6 tion 3 of the Public Utility Regulatory Policies Act 

7 of 1978 (16 U.S.C. 2602). 

8 Subtitle H—Merger Reform 

9 SEC. 1291. MERGER REVIEW REFORM AND ACCOUNT10 ABILITY. 

11 (a) MERGER REVIEW REFORM.—Within 180 days 

12 after the date of enactment of this Act, the Secretary of En13 ergy, in consultation with the Federal Energy Regulatory 

14 Commission and the Attorney General of the United States, 

15 shall prepare, and transmit to Congress each of the fol16 lowing: 

17 (1) A study of the extent to which the authorities 

18 vested in the Federal Energy Regulatory Commission 

19 under section 203 of the Federal Power Act are dupli20 cative of authorities vested in— 

21 (A) other agencies of Federal and State 

22 Government; and 

23 (B) the Federal Energy Regulatory Com24 mission, including under sections 205 and 206 of 

25 the Federal Power Act. 
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1 (2) Recommendations on reforms to the Federal 

2 Power Act that would eliminate any unnecessary du3 plication in the exercise of regulatory authority or 

4 unnecessary delays in the approval (or disapproval) 

5 of applications for the sale, lease, or other disposition 

6 of public utility facilities. 

7 (b) MERGER REVIEW ACCOUNTABILITY.—Not later 

8 than 1 year after the date of enactment of this Act and 

9 annually thereafter, with respect to all orders issued within 

10 the preceding year that impose a condition on a sale, lease, 

11 or other disposition of public utility facilities under section 

12 203(b) of the Federal Power Act, the Federal Energy Regu13 latory Commission shall transmit a report to Congress ex14 plaining each of the following: 

15 (1) The condition imposed. 

16 (2) Whether the Commission could have imposed 

17 such condition by exercising its authority under any 

18 provision of the Federal Power Act other than under 

19 section 203(b). 

20 (3) If the Commission could not have imposed 

21 such condition other than under section 203(b), why 

22 the Commission determined that such condition was 

23 consistent with the public interest. 
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1 SEC. 1292. ELECTRIC UTILITY MERGERS. 

2 (a) AMENDMENT.—Section 203(a) of the Federal 

3 Power Act (16 U.S.C. 824b(a)) is amended to read as fol4 lows: 

5 ‘‘(a)(1) No public utility shall, without first having se6 cured an order of the Commission authorizing it to do so— 

7 ‘‘(A) sell, lease, or otherwise dispose of the whole 

8 of its facilities subject to the jurisdiction of the Com9 mission, or any part thereof of a value in excess of 

10 $10,000,000; 

11 ‘‘(B) merge or consolidate, directly or indirectly, 

12 such facilities or any part thereof with those of any 

13 other person, by any means whatsoever; or 

14 ‘‘(C) purchase, acquire, or take any security with 

15 a value in excess of $10,000,000 of any other public 

16 utility. 

17 ‘‘(2) No holding company in a holding company sys18 tem that includes a public utility shall purchase, acquire, 

19 or take any security with a value in excess of $10,000,000 

20 of, or, by any means whatsoever, directly or indirectly, 

21 merge or consolidate with, a public utility or a holding 

22 company in a holding company system that includes a pub23 lic utility with a value in excess of $10,000,000 without 

24 first having secured an order of the Commission authorizing 

25 it to do so. 
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1 ‘‘(3) Upon receipt of an application for such approval 

2 the Commission shall give reasonable notice in writing to 

3 the Governor and State commission of each of the States 

4 in which the physical property affected, or any part thereof, 

5 is situated, and to such other persons as it may deem advis6 able. 

7 ‘‘(4) After notice and opportunity for hearing, the 

8 Commission shall approve the proposed disposition, consoli9 dation, acquisition, or change in control, if it finds that 

10 the proposed transaction will be consistent with the public 

11 interest. In evaluating whether a transaction will be con12 sistent with the public interest, the Commission shall con13 sider whether the proposed transaction— 

14 ‘‘(A) will adequately protect consumer interests; 

15 ‘‘(B) will be consistent with competitive whole16 sale markets; 

17 ‘‘(C) will impair the financial integrity of any 

18 public utility that is a party to the transaction or an 

19 associate company of any party to the transaction; 

20 and 

21 ‘‘(D) satisfies such other criteria as the Commis22 sion considers consistent with the public interest. 

23 ‘‘(5) The Commission shall, by rule, adopt procedures 

24 for the expeditious consideration of applications for the ap25 proval of dispositions, consolidations, or acquisitions under 
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1 this section. Such rules shall identify classes of transactions, 

2 or specify criteria for transactions, that normally meet the 

3 standards established in paragraph (4). The Commission 

4 shall provide expedited review for such transactions. The 

5 Commission shall grant or deny any other application for 

6 approval of a transaction not later than 180 days after the 

7 application is filed. If the Commission does not act within 

8 180 days, such application shall be deemed granted unless 

9 the Commission finds, based on good cause, that further 

10 consideration is required to determine whether the proposed 

11 transaction meets the standards of paragraph (4) and issues 

12 an order tolling the time for acting on the application for 

13 not more than 180 days, at the end of which additional 

14 period the Commission shall grant or deny the application. 

15 ‘‘(6) For purposes of this subsection, the terms ‘asso16 ciate company’, ‘holding company’, and ‘holding company 

17 system’ have the meaning given those terms in the Public 

18 Utility Holding Company Act of 2005.’’. 

19 (b) EFFECTIVE DATE.—The amendments made by this 

20 section shall take effect 12 months after the date of enact21 ment of this section. 
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1 Subtitle I—Definitions 

2 SEC. 1295. DEFINITIONS. 

3 (a) ELECTRIC UTILITY.—Section 3(22) of the Federal 

4 Power Act (16 U.S.C. 796(22)) is amended to read as fol5 lows: 

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)) that 

9 sells electric energy; such term includes the Tennessee 

10 Valley Authority and each Federal power marketing 

11 administration.’’. 

12 (b) TRANSMITTING UTILITY.—Section 3(23) of the 

13 Federal Power Act (16 U.S.C. 796(23)) is amended to read 

14 as follows: 

15 ‘‘(23) TRANSMITTING UTILITY.—The term ‘trans16 mitting utility’ means an entity, including any enti17 ty described in section 201(f), that owns, operates, or 

18 controls facilities used for the transmission of electric 

19 energy— 

20 ‘‘(A) in interstate commerce; or 

21 ‘‘(B) for the sale of electric energy at whole22 sale.’’. 

23 (c) ADDITIONAL DEFINITIONS.—Section 3 of the Fed24 eral Power Act (16 U.S.C. 796) is amended by adding at 

25 the end the following: 
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1 ‘‘(26) ELECTRIC COOPERATIVE.—The term ‘elec2 tric cooperative’ means a cooperatively owned electric 

3 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 used 

8 for the transmission of electric energy in interstate 

9 commerce and to ensure nondiscriminatory access to 

10 such facilities. 

11 ‘‘(28) ISO.—The term ‘Independent System Op12 erator’ or ‘ISO’ means an entity approved by the 

13 Commission to exercise operational or functional con14 trol of facilities used for the transmission of electric 

15 energy in interstate commerce and to ensure non16 discriminatory access to such facilities.’’. 

17 (d) COMMISSION.—For the purposes of this title, the 

18 term ‘‘Commission’’ means the Federal Energy Regulatory 

19 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 electric 

23 cooperative that has financing under the Rural Electrifica24 tion Act of 1936 (7 U.S.C. 901 et seq.) or that sells less 

25 than 4,000,000 megawatt hours of electricity per year,’’. 
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1 Subtitle J—Technical and 

2 Conforming Amendments 

3 SEC. 1297. CONFORMING AMENDMENTS. 

4 The Federal Power Act is amended as follows: 

5 (1) Section 201(b)(2) of such Act (16 U.S.C. 

6 824(b)(2)) is amended as follows: 

7 (A) In the first sentence by striking ‘‘210, 

8 211, and 212’’ and inserting ‘‘203(a)(2), 206(e), 

9 210, 211, 211A, 212, 215, 216, 217, 218, 219, 

10 220, 221, and 222’’. 

11 (B) In the second sentence by striking ‘‘210 

12 or 211’’ and inserting ‘‘203(a)(2), 206(e), 210, 

13 211, 211A, 212, 215, 216, 217, 218, 219, 220, 

14 221, and 222’’. 

15 (C) Section 201(b)(2) of such Act is amend16 ed by striking ‘‘The’’ in the first place it appears 

17 and inserting ‘‘Notwithstanding section 201(f), 

18 the’’ and in the second sentence after ‘‘any 

19 order’’ by inserting ‘‘or rule’’. 

20 (2) Section 201(e) of such Act is amended by 

21 striking ‘‘210, 211, or 212’’ and inserting ‘‘206(e), 

22 206(f), 210, 211, 211A, 212, 215, 216, 217, 218, 219, 

23 220, 221, and 222’’. 

24 (3) Section 206 of such Act (16 U.S.C. 824e) is 

25 amended as follows: 
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1 (A) In subsection (b), in the seventh sen2 tence, by striking ‘‘the public utility to make’’. 

3 (B) In the first sentence of subsection (a), 

4 by striking ‘‘hearing had’’ and inserting ‘‘hear5 ing held’’. 

6 (4) Section 211(c) of such Act (16 U.S.C. 

7 824j(c)) is amended by— 

8 (A) striking ‘‘(2)’’; 

9 (B) striking ‘‘(A)’’ and inserting ‘‘(1)’’ 

10 (C) striking ‘‘(B)’’ and inserting ‘‘(2)’’; and 

11 (D) striking ‘‘termination of modification’’ 

12 and inserting ‘‘termination or modification’’. 

13 (5) Section 211(d)(1) of such Act (16 U.S.C. 

14 824j(d)(1)) is amended by striking ‘‘electric utility’’ 

15 the second time it appears and inserting ‘‘transmit16 ting utility’’. 

17 (6) Section 315 (c) of such Act (16 U.S.C. 

18 825n(c)) is amended by striking ‘‘subsection’’ and in19 serting ‘‘section’’. 

20 Subtitle K—Economic Dispatch 

21 SEC. 1298. ECONOMIC DISPATCH. 

22 Part II of the Federal Power Act (16 U.S.C. 824 et 

23 seq.) is amended by adding at the end the following: 
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1 ‘‘SEC. 223. JOINT BOARD ON ECONOMIC DISPATCH. 

2 ‘‘(a) IN GENERAL.—The Commission shall convene a 

3 joint board pursuant to section 209 of this Act to study 

4 the issue of security constrained economic dispatch for a 

5 market region. 

6 ‘‘(b) MEMBERSHIP.—The Commission shall request 

7 each State to nominate a representative for such joint 

8 board. 

9 ‘‘(c) POWERS.—The board’s sole authority shall be to 

10 consider issues relevant to what constitutes ‘security con11 strained economic dispatch’ and how such a mode of oper12 ating an electric energy system affects or enhances the reli13 ability and affordability of service to customers. 

14 ‘‘(d) REPORT TO THE CONGRESS.—The board shall 

15 issue a report on these matters within one year of enactment 

16 of this section, including any consensus recommendations 

17 for statutory or regulatory reform.’’. 

18 TITLE XIV—MISCELLANEOUS 

19 Subtitle C—Other Provisions 

20 SEC. 1441. CONTINUATION OF TRANSMISSION SECURITY 

21 ORDER. 

22 Department of Energy Order No. 202–03–2, issued by 

23 the Secretary of Energy on August 28, 2003, shall remain 

24 in effect unless rescinded by Federal statute. 
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1 SEC. 1442. REVIEW OF AGENCY DETERMINATIONS. 

2 Section 7 of the Natural Gas Act (15 U.S.C. 717f) is 

3 amended by adding at the end the following: 

4 ‘‘(i)(1) The United States Court of Appeals for the Dis5 trict of Columbia Circuit shall have original and exclusive 

6 jurisdiction over any civil action— 

7 ‘‘(A) for review of any order or action of any 

8 Federal or State administrative agency or officer to 

9 issue, condition, or deny any permit, license, concur10 rence, or approval issued under authority of any Fed11 eral law, other than the Coastal Zone Management 

12 Act of 1972 (16 U.S.C. 1451 et seq.), required for the 

13 construction of a natural gas pipeline for which a 

14 certificate of public convenience and necessity is 

15 issued by the Commission under this section; 

16 ‘‘(B) alleging unreasonable delay by any Federal 

17 or State administrative agency or officer in entering 

18 an order or taking other action described in subpara19 graph (A); or 

20 ‘‘(C) challenging any decision made or action 

21 taken under this subsection. 

22 ‘‘(2)(A) If the Court finds that the order, action, or 

23 failure to act is not consistent with the public convenience 

24 and necessity (as determined by the Commission under this 

25 section), or would prevent the construction and operation 

26 of natural gas facilities authorized by the certificate of pub-
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1 lic convenience and necessity, the permit, license, concur2 rence, or approval that is the subject of the order, action, 

3 or failure to act shall be deemed to have been issued subject 

4 to any conditions set forth in the reviewed order or action 

5 that the Court finds to be consistent with the public conven6 ience and necessity. 

7 ‘‘(B) For purposes of paragraph (1)(B), the failure of 

8 an agency or officer to issue any such permit, license, con9 currence, or approval within the later of 1 year after the 

10 date of filing of an application for the permit, license, con11 currence, or approval or 60 days after the date of issuance 

12 of the certificate of public convenience and necessity under 

13 this section, shall be considered to be unreasonable delay 

14 unless the Court, for good cause shown, determines other15 wise. 

16 ‘‘(C) The Court shall set any action brought under 

17 paragraph (1) for expedited consideration.’’. 

18 SEC. 1443. ATTAINMENT DATES FOR DOWNWIND OZONE 

19 NONATTAINMENT AREAS. 

20 Section 181 of the Clean Air Act (42 U.S.C.7511) is 

21 amended by adding the following new subsection at the end 

22 thereof: 

23 ‘‘(d) EXTENDED ATTAINMENT DATE FOR CERTAIN

24 DOWNWIND AREAS.— 
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1 ‘‘(1) DEFINITIONS.—(A) The term ‘upwind area’ 

2 means an area that— 

3 ‘‘(i) significantly contributes to nonattain4 ment in another area, hereinafter referred to as 

5 a ‘downwind area’; and 

6 ‘‘(ii) is either— 

7 ‘‘(I) a nonattainment area with a later 

8 attainment date than the downwind area, 

9 or 

10 ‘‘(II) an area in another State that the 

11 Administrator has found to be significantly 

12 contributing to nonattainment in the down13 wind area in violation of section 

14 110(a)(2)(D) and for which the Adminis15 trator has established requirements through 

16 notice and comment rulemaking to elimi17 nate the emissions causing such significant 

18 contribution. 

19 ‘‘(B) The term ‘current classification’ means the 

20 classification of a downwind area under this section 

21 at the time of the determination under paragraph (2). 

22 ‘‘(2) EXTENSION.—If the Administrator— 

23 ‘‘(A) determines that any area is a down24 wind area with respect to a particular national 

25 ambient air quality standard for ozone; and 
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1 ‘‘(B) approves a plan revision for such area 

2 as provided in paragraph (3) prior to a reclassi3 fication under subsection (b)(2)(A), 

4 the Administrator, in lieu of such reclassification, 

5 shall extend the attainment date for such downwind 

6 area for such standard in accordance with paragraph 

7 (5). 

8 ‘‘(3) REQUIRED APPROVAL.—In order to extend 

9 the attainment date for a downwind area under this 

10 subsection, the Administrator must approve a revision 

11 of the applicable implementation plan for the down12 wind area for such standard that— 

13 ‘‘(A) complies with all requirements of this 

14 Act applicable under the current classification of 

15 the downwind area, including any requirements 

16 applicable to the area under section 172(c) for 

17 such standard; and 

18 ‘‘(B) includes any additional measures 

19 needed to demonstrate attainment by the ex20 tended attainment date provided under this sub21 section. 

22 ‘‘(4) PRIOR RECLASSIFICATION DETERMINA23 TION.—If, no more than 18 months prior to the date 

24 of enactment of this subsection, the Administrator 

25 made a reclassification determination under sub-
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1 section (b)(2)(A) for any downwind area, and the Ad2 ministrator approves the plan revision referred to in 

3 paragraph (3) for such area within 12 months after 

4 the date of enactment of this subsection, the reclassi5 fication shall be withdrawn and the attainment date 

6 extended in accordance with paragraph (5) upon such 

7 approval. The Administrator shall also withdraw a 

8 reclassification determination under subsection 

9 (b)(2)(A) made after the date of enactment of this 

10 subsection and extend the attainment date in accord11 ance with paragraph (5) if the Administrator ap12 proves the plan revision referred to in paragraph (3) 

13 within 12 months of the date the reclassification de14 termination under subsection (b)(2)(A) is issued. In 

15 such instances the ‘current classification’ used for 

16 evaluating the revision of the applicable implementa17 tion plan under paragraph (3) shall be the classifica18 tion of the downwind area under this section imme19 diately prior to such reclassification. 

20 ‘‘(5) EXTENDED DATE.—The attainment date ex21 tended under this subsection shall provide for attain22 ment of such national ambient air quality standard 

23 for ozone in the downwind area as expeditiously as 

24 practicable but no later than the date on which the 

25 last reductions in pollution transport necessary for 
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1 attainment in the downwind area are required to be 

2 achieved by the upwind area or areas.’’. 

3 SEC. 1444. ENERGY PRODUCTION INCENTIVES. 

4 (a) IN GENERAL.—A State may provide to any enti5 ty— 

6 (1) a credit against any tax or fee owed to the 

7 State under a State law, or 

8 (2) any other tax incentive, 

9 determined by the State to be appropriate, in the amount 

10 calculated under and in accordance with a formula deter11 mined by the State, for production described in subsection 

12 (b) in the State by the entity that receives such credit or 

13 such incentive. 

14 (b) ELIGIBLE ENTITIES.—Subsection (a) shall apply 

15 with respect to the production in the State of— 

16 (1) electricity from coal mined in the State and 

17 used in a facility, if such production meets all appli18 cable Federal and State laws and if such facility uses 

19 scrubbers or other forms of clean coal technology, 

20 (2) electricity from a renewable source such as 

21 wind, solar, or biomass, or 

22 (3) ethanol. 

23 (c) EFFECT ON INTERSTATE COMMERCE.—Any action 

24 taken by a State in accordance with this section with re25 spect to a tax or fee payable, or incentive applicable, for 
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1 any period beginning after the date of the enactment of this 

2 Act shall— 

3 (1) be considered to be a reasonable regulation of 

4 commerce; and 

5 (2) not be considered to impose an undue burden 

6 on interstate commerce or to otherwise impair, re7 strain, or discriminate, against interstate commerce. 

8 SEC. 1446. REGULATION OF CERTAIN OIL USED IN TRANS9 FORMERS. 

10 Notwithstanding any other provision of law, or rule 

11 promulgated by the Environmental Protection Agency, veg12 etable oil made from soybeans and used in electric trans13 formers as thermal insulation shall not be regulated as an 

14 oil as defined under section 2(a)(1)(A) of the Edible Oil 

15 Regulatory Reform Act (33 U.S.C. 2720(a)(1)(A)). 

16 SEC. 1447. RISK ASSESSMENTS. 

17 Subtitle B of title XXX of the Energy Policy Act of 

18 1992 is amended by adding at the end the following new 

19 section: 

20 ‘‘SEC. 3022. RISK ASSESSMENT. 

21 ‘‘Federal agencies conducting assessments of risks to 

22 human health and the environment from energy technology, 

23 production, transport, transmission, distribution, storage, 

24 use, or conservation activities shall use sound and objective 

25 scientific practices in assessing such risks, shall consider the 
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1 best available science (including peer reviewed studies), and 

2 shall include a description of the weight of the scientific 

3 evidence concerning such risks.’’. 

4 SEC. 1448. OXYGEN-FUEL. 

5 (a) PROGRAM.—The Secretary of Energy shall estab6 lish a program on oxygen-fuel systems. If feasible, the pro7 gram shall include renovation of at least one existing large 

8 unit and one existing small unit, and construction of one 

9 new large unit and one new small unit. Cost sharing shall 

10 not be required. 

11 (b) AUTHORIZATION OF APPROPRIATIONS.—There are 

12 authorized to be appropriated to the Secretary for carrying 

13 out this section— 

14 (1) $100,000,000 for fiscal year 2006; 

15 (2) $100,000,000 for fiscal year 2007; and 

16 (3) $100,000,000 for fiscal year 2008. 

17 (c) DEFINITIONS.—For purposes of this section— 

18 (1) the term ‘‘large unit’’ means a unit with a 

19 generating capacity of 100 megawatts or more; 

20 (2) the term ‘‘oxygen-fuel systems’’ means sys21 tems that utilize fuel efficiency benefits of oil, gas, 

22 coal, and biomass combustion using substantially 

23 pure oxygen, with high flame temperatures and the 

24 exclusion of air from the boiler, in industrial or elec25 tric utility steam generating units; and 
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1 (3) the term ‘‘small unit’’ means a unit with a 

2 generating capacity in the 10–50 megawatt range. 

3 SEC. 1449. PETROCHEMICAL AND OIL REFINERY FACILITY 

4 HEALTH ASSESSMENT. 

5 (a) ESTABLISHMENT.—The Secretary of Energy shall 

6 conduct a study of direct and significant health impacts 

7 to persons resulting from living in proximity to petro8 chemical and oil refinery facilities. The Secretary shall con9 sult with the Director of the National Cancer Institute and 

10 other Federal Government bodies with expertise in the field 

11 it deems appropriate in the design of such study. The study 

12 shall be conducted according to sound and objective sci13 entific practices and present the weight of the scientific evi14 dence. The Secretary shall obtain scientific peer review of 

15 the draft study. 

16 (b) REPORT TO CONGRESS.—The Secretary shall 

17 transmit the results of the study to Congress within 6 

18 months of the enactment of this section. 

19 (c) AUTHORIZATION OF APPROPRIATIONS.—There are 

20 authorized to be appropriated to the Secretary for activities 

21 under this section such sums as are necessary for the com22 pletion of the study. 
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1 TITLE XV—ETHANOL AND 

2 MOTOR FUELS 

3 Subtitle A—General Provisions 

4 SEC. 1501. RENEWABLE CONTENT OF MOTOR VEHICLE 

5 FUEL. 

6 (a) IN GENERAL.—Section 211 of the Clean Air Act 

7 (42 U.S.C. 7545) is amended— 

8 (1) by redesignating subsection (o) as subsection 

9 (q); and 

10 (2) by inserting after subsection (n) the fol11 lowing: 

12 ‘‘(o) RENEWABLE FUEL PROGRAM.— 

13 ‘‘(1) DEFINITIONS.—In this section: 

14 ‘‘(A) ETHANOL.—(i) The term ‘cellulosic 

15 biomass ethanol’ means ethanol derived from any 

16 lignocellulosic or hemicellulosic matter that is 

17 available on a renewable or recurring basis, in18 cluding— 

19 ‘‘(I) dedicated energy crops and trees; 

20 ‘‘(II) wood and wood residues; 

21 ‘‘(III) plants; 

22 ‘‘(IV) grasses; 

23 ‘‘(V) agricultural residues; and 

24 ‘‘(VI) fibers. 
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1 ‘‘(ii) The term ‘waste derived ethanol’ 

2 means ethanol derived from— 

3 ‘‘(I) animal wastes, including poultry 

4 fats and poultry wastes, and other waste 

5 materials; or 

6 ‘‘(II) municipal solid waste. 

7 ‘‘(B) RENEWABLE FUEL.— 

8 ‘‘(i) IN GENERAL.—The term ‘renew9 able fuel’ means motor vehicle fuel that— 

10 ‘‘(I)(aa) is produced from grain, 

11 starch, oilseeds, or other biomass; or 

12 ‘‘(bb) is natural gas produced 

13 from a biogas source, including a land14 fill, sewage waste treatment plant, 

15 feedlot, or other place where decaying 

16 organic material is found; and 

17 ‘‘(II) is used to replace or reduce 

18 the quantity of fossil fuel present in a 

19 fuel mixture used to operate a motor 

20 vehicle. 

21 ‘‘(ii) INCLUSION.—The term ‘renewable 

22 fuel’ includes cellulosic biomass ethanol, 

23 waste derived ethanol, and biodiesel (as de24 fined in section 312(f) of the Energy Policy 

25 Act of 1992 (42 U.S.C. 13220(f)) and any 
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1 blending components derived from renew2 able fuel (provided that only the renewable 

3 fuel portion of any such blending compo4 nent shall be considered part of the applica5 ble volume under the renewable fuel pro6 gram established by this subsection). 

7 ‘‘(C) SMALL REFINERY.—The term ‘small 

8 refinery’ means a refinery for which average ag9 gregate daily crude oil throughput for the cal10 endar year (as determined by dividing the aggre11 gate throughput for the calendar year by the 

12 number of days in the calendar year) does not 

13 exceed 75,000 barrels. 

14 ‘‘(2) RENEWABLE FUEL PROGRAM.— 

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

16 after the enactment of this subsection, the Ad17 ministrator shall promulgate regulations ensur18 ing that motor vehicle fuel sold or dispensed to 

19 consumers in the contiguous United States, on 

20 an annual average basis, contains the applicable 

21 volume of renewable fuel as specified in subpara22 graph (B). Regardless of the date of promulga23 tion, such regulations shall contain compliance 

24 provisions for refiners, blenders, and importers, 

25 as appropriate, to ensure that the requirements 
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1 of this section are met, but shall not restrict 

2 where renewable fuel can be used, or impose any 

3 per-gallon obligation for the use of renewable 

4 fuel. If the Administrator does not promulgate 

5 such regulations, the applicable percentage re6 ferred to in paragraph (4), on a volume percent7 age of gasoline basis, shall be 2.2 in 2005. 

8 ‘‘(B) APPLICABLE VOLUME.— 

9 ‘‘(i) CALENDAR YEARS 2005 THROUGH

10 2012.—For the purpose of subparagraph (A), 

11 the applicable volume for any of calendar 

12 years 2005 through 2012 shall be deter13 mined in accordance with the following 

14 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 

15 ‘‘(ii) CALENDAR YEAR 2013 AND

16 THEREAFTER.—For the purpose of subpara17 graph (A), the applicable volume for cal18 endar year 2013 and each calendar year 

19 thereafter shall be equal to the product ob20 tained by multiplying— 
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1 ‘‘(I) the number of gallons of gaso2 line that the Administrator estimates 

3 will be sold or introduced into com4 merce in the calendar year; and 

5 ‘‘(II) the ratio that— 

6 ‘‘(aa) 5.0 billion gallons of 

7 renewable fuels; bears to 

8 ‘‘(bb) the number of gallons 

9 of gasoline sold or introduced into 

10 commerce in calendar year 2012. 

11 ‘‘(3) NON-CONTIGUOUS STATE OPT-IN.—Upon the 

12 petition of a non-contiguous State, the Administrator 

13 may allow the renewable fuel program established by 

14 subtitle A of title XV of the Energy Policy Act of 2005 

15 to apply in such non-contiguous State at the same 

16 time or any time after the Administrator promulgates 

17 regulations under paragraph (2). The Administrator 

18 may promulgate or revise regulations under para19 graph (2), establish applicable percentages under 

20 paragraph (4), provide for the generation of credits 

21 under paragraph (6), and take such other actions as 

22 may be necessary to allow for the application of the 

23 renewable fuels program in a non-contiguous State. 

24 ‘‘(4) APPLICABLE PERCENTAGES.— 
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1 ‘‘(A) PROVISION OF ESTIMATE OF VOLUMES

2 OF GASOLINE SALES.—Not later than October 31 

3 of each of calendar years 2005 through 2011, the 

4 Administrator of the Energy Information Ad5 ministration shall provide to the Administrator 

6 of the Environmental Protection Agency an esti7 mate of the volumes of gasoline that will be sold 

8 or introduced into commerce in the United 

9 States during the following calendar year. 

10 ‘‘(B) DETERMINATION OF APPLICABLE PER11 CENTAGES.— 

12 ‘‘(i) IN GENERAL.—Not later than No13 vember 30 of each of the calendar years 

14 2005 through 2011, based on the estimate 

15 provided under subparagraph (A), the Ad16 ministrator shall determine and publish in 

17 the Federal Register, with respect to the fol18 lowing calendar year, the renewable fuel ob19 ligation that ensures that the requirements 

20 of paragraph (2) are met. 

21 ‘‘(ii) REQUIRED ELEMENTS.—The re22 newable fuel obligation determined for a 

23 calendar year under clause (i) shall— 
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1 ‘‘(I) be applicable to refiners, 

2 blenders, and importers, as appro3 priate; 

4 ‘‘(II) be expressed in terms of a 

5 volume percentage of gasoline sold or 

6 introduced into commerce; and 

7 ‘‘(III) subject to subparagraph 

8 (C)(i), consist of a single applicable 

9 percentage that applies to all categories 

10 of persons specified in subclause (I). 

11 ‘‘(C) ADJUSTMENTS.—In determining the 

12 applicable percentage for a calendar year, the 

13 Administrator shall make adjustments— 

14 ‘‘(i) to prevent the imposition of redun15 dant obligations to any person specified in 

16 subparagraph (B)(ii)(I); and 

17 ‘‘(ii) to account for the use of renew18 able fuel during the previous calendar year 

19 by small refineries that are exempt under 

20 paragraph (11). 

21 ‘‘(5) EQUIVALENCY.—For the purpose of para22 graph (2), 1 gallon of either cellulosic biomass ethanol 

23 or waste derived ethanol— 

24 ‘‘(A) shall be considered to be the equivalent 

25 of 1.5 gallon of renewable fuel; or 
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1 ‘‘(B) if the cellulostic biomass ethanol or 

2 waste derived ethanol is derived from agricul3 tural residue or wood residue or is an agricul4 tural byproduct (as that term is used in section 

5 919 of the Energy Policy Act of 2005), shall be 

6 considered to be the equivalent of 2.5 gallons of 

7 renewable fuel. 

8 ‘‘(6) CREDIT PROGRAM.— 

9 ‘‘(A) IN GENERAL.—The regulations pro10 mulgated to carry out this subsection shall pro11 vide for the generation of an appropriate 

12 amount of credits by any person that refines, 

13 blends, or imports gasoline that contains a quan14 tity of renewable fuel that is greater than the 

15 quantity required under paragraph (2). Such 

16 regulations shall provide for the generation of an 

17 appropriate amount of credits for biodiesel fuel. 

18 If a small refinery notifies the Administrator 

19 that it waives the exemption provided paragraph 

20 (11), the regulations shall provide for the genera21 tion of credits by the small refinery beginning in 

22 the year following such notification. 

23 ‘‘(B) USE OF CREDITS.—A person that gen24 erates credits under subparagraph (A) may use 

25 the credits, or transfer all or a portion of the 
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1 credits to another person, for the purpose of com2 plying with paragraph (2). 

3 ‘‘(C) LIFE OF CREDITS.—A credit generated 

4 under this paragraph shall be valid to show com5 pliance— 

6 ‘‘(i) in the calendar year in which the 

7 credit was generated or the next calendar 

8 year; or 

9 ‘‘(ii) in the calendar year in which the 

10 credit was generated or next two consecutive 

11 calendar years if the Administrator promul12 gates regulations under paragraph (7). 

13 ‘‘(D) INABILITY TO PURCHASE SUFFICIENT

14 CREDITS.—The regulations promulgated to carry 

15 out this subsection shall include provisions al16 lowing any person that is unable to generate or 

17 purchase sufficient credits to meet the require18 ments under paragraph (2) to carry forward a 

19 renewable fuel deficit provided that, in the cal20 endar year following the year in which the re21 newable fuel deficit is created, such person shall 

22 achieve compliance with the renewable fuel re23 quirement under paragraph (2), and shall gen24 erate or purchase additional renewable fuel cred-
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1 its to offset the renewable fuel deficit of the pre2 vious year. 

3 ‘‘(7) SEASONAL VARIATIONS IN RENEWABLE

4 FUEL USE.— 

5 ‘‘(A) STUDY.—For each of the calendar 

6 years 2005 through 2012, the Administrator of 

7 the Energy Information Administration shall 

8 conduct a study of renewable fuels blending to 

9 determine whether there are excessive seasonal 

10 variations in the use of renewable fuels. 

11 ‘‘(B) REGULATION OF EXCESSIVE SEASONAL

12 VARIATIONS.—If, for any calendar year, the Ad13 ministrator of the Energy Information Adminis14 tration, based on the study under subparagraph 

15 (A), makes the determinations specified in sub16 paragraph (C), the Administrator shall promul17 gate regulations to ensure that 35 percent or 

18 more of the quantity of renewable fuels necessary 

19 to meet the requirement of paragraph (2) is used 

20 during each of the periods specified in subpara21 graph (D) of each subsequent calendar year. 

22 ‘‘(C) DETERMINATIONS.—The determina23 tions referred to in subparagraph (B) are that— 

24 ‘‘(i) less than 35 percent of the quan25 tity of renewable fuels necessary to meet the 
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1 requirement of paragraph (2) has been used 

2 during one of the periods specified in sub3 paragraph (D) of the calendar year; 

4 ‘‘(ii) a pattern of excessive seasonal 

5 variation described in clause (i) will con6 tinue in subsequent calendar years; and 

7 ‘‘(iii) promulgating regulations or 

8 other requirements to impose a 35 percent 

9 or more seasonal use of renewable fuels will 

10 not prevent or interfere with the attainment 

11 of national ambient air quality standards 

12 or significantly increase the price of motor 

13 fuels to the consumer. 

14 ‘‘(D) PERIODS.—The two periods referred to 

15 in this paragraph are— 

16 ‘‘(i) April through September; and 

17 ‘‘(ii) January through March and Oc18 tober through December. 

19 ‘‘(E) EXCLUSIONS.—Renewable fuels blend20 ed or consumed in 2005 in a State which has re21 ceived a waiver under section 209(b) shall not be 

22 included in the study in subparagraph (A). 

23 ‘‘(8) WAIVERS.— 

24 ‘‘(A) IN GENERAL.—The Administrator, in 

25 consultation with the Secretary of Agriculture 
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1 and the Secretary of Energy, may waive the re2 quirement of paragraph (2) in whole or in part 

3 on petition by one or more States by reducing 

4 the national quantity of renewable fuel required 

5 under this subsection— 

6 ‘‘(i) based on a determination by the 

7 Administrator, after public notice and op8 portunity for comment, that implementa9 tion of the requirement would severely harm 

10 the economy or environment of a State, a 

11 region, or the United States; or 

12 ‘‘(ii) based on a determination by the 

13 Administrator, after public notice and op14 portunity for comment, that there is an in15 adequate domestic supply or distribution 

16 capacity to meet the requirement. 

17 ‘‘(B) PETITIONS FOR WAIVERS.—The Ad18 ministrator, in consultation with the Secretary 

19 of Agriculture and the Secretary of Energy, shall 

20 approve or disapprove a State petition for a 

21 waiver of the requirement of paragraph (2) with22 in 90 days after the date on which the petition 

23 is received by the Administrator. 

24 ‘‘(C) TERMINATION OF WAIVERS.—A waiver 

25 granted under subparagraph (A) shall terminate 
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1 after 1 year, but may be renewed by the Admin2 istrator after consultation with the Secretary of 

3 Agriculture and the Secretary of Energy. 

4 ‘‘(9) STUDY AND WAIVER FOR INITIAL YEAR OF

5 PROGRAM.—Not later than 180 days after the enact6 ment of this subsection, the Secretary of Energy shall 

7 complete for the Administrator a study assessing 

8 whether the renewable fuels requirement under para9 graph (2) will likely result in significant adverse con10 sumer impacts in 2005, on a national, regional, or 

11 State basis. Such study shall evaluate renewable fuel 

12 supplies and prices, blendstock supplies, and supply 

13 and distribution system capabilities. Based on such 

14 study, the Secretary shall make specific recommenda15 tions to the Administrator regarding waiver of the re16 quirements of paragraph (2), in whole or in part, to 

17 avoid any such adverse impacts. Within 270 days 

18 after the enactment of this subsection, the Adminis19 trator shall, consistent with the recommendations of 

20 the Secretary, waive, in whole or in part, the renew21 able fuels requirement under paragraph (2) by reduc22 ing the national quantity of renewable fuel required 

23 under this subsection in 2005. This paragraph shall 

24 not be interpreted as limiting the Administrator’s au25 thority to waive the requirements of paragraph (2) in 
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1 whole, or in part, under paragraph (8) or paragraph 

2 (10), pertaining to waivers. 

3 ‘‘(10) ASSESSMENT AND WAIVER.—The Adminis4 trator, in consultation with the Secretary of Energy 

5 and the Secretary of Agriculture, shall evaluate the 

6 requirement of paragraph (2) and determine, prior to 

7 January 1, 2007, and prior to January 1 of any sub8 sequent year in which the applicable volume of renew9 able fuel is increased under paragraph (2)(B), wheth10 er the requirement of paragraph (2), including the 

11 applicable volume of renewable fuel contained in 

12 paragraph (2)(B) should remain in effect, in whole or 

13 in part, during 2007 or any year or years subsequent 

14 to 2007. In evaluating the requirement of paragraph 

15 (2) and in making any determination under this sec16 tion, the Administrator shall consider the best avail17 able information and data collected by accepted meth18 ods or best available means regarding— 

19 ‘‘(A) the capacity of renewable fuel pro20 ducers to supply an adequate amount of renew21 able fuel at competitive prices to fulfill the re22 quirement of paragraph (2); 

23 ‘‘(B) the potential of the requirement of 

24 paragraph (2) to significantly raise the price of 

25 gasoline, food (excluding the net price impact on 
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1 the requirement in paragraph (2) on commod2 ities used in the production of ethanol), or heat3 ing oil for consumers in any significant area or 

4 region of the country above the price that would 

5 otherwise apply to such commodities in the ab6 sence of such requirement; 

7 ‘‘(C) the potential of the requirement of 

8 paragraph (2) to interfere with the supply of fuel 

9 in any significant gasoline market or region of 

10 the country, including interference with the effi11 cient operation of refiners, blenders, importers, 

12 wholesale suppliers, and retail vendors of gaso13 line, and other motor fuels; and 

14 ‘‘(D) the potential of the requirement of 

15 paragraph (2) to cause or promote exceedances of 

16 Federal, State, or local air quality standards. 

17 If the Administrator determines, by clear and con18 vincing information, after public notice and the op19 portunity for comment, that the requirement of para20 graph (2) would have significant and meaningful ad21 verse impact on the supply of fuel and related infra22 structure or on the economy, public health, or envi23 ronment of any significant area or region of the coun24 try, the Administrator may waive, in whole or in 

25 part, the requirement of paragraph (2) in any one 
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1 year for which the determination is made for that 

2 area or region of the country, except that any such 

3 waiver shall not have the effect of reducing the appli4 cable volume of renewable fuel specified in paragraph 

5 (2)(B) with respect to any year for which the deter6 mination is made. In determining economic impact 

7 under this paragraph, the Administrator shall not 

8 consider the reduced revenues available from the 

9 Highway Trust Fund (section 9503 of the Internal 

10 Revenue Code of 1986) as a result of the use of eth11 anol. 

12 ‘‘(11) SMALL REFINERIES.— 

13 ‘‘(A) IN GENERAL.—The requirement of 

14 paragraph (2) shall not apply to small refineries 

15 until the first calendar year beginning more 

16 than 5 years after the first year set forth in the 

17 table in paragraph (2)(B)(i). Not later than De18 cember 31, 2007, the Secretary of Energy shall 

19 complete for the Administrator a study to deter20 mine whether the requirement of paragraph (2) 

21 would impose a disproportionate economic hard22 ship on small refineries. For any small refinery 

23 that the Secretary of Energy determines would 

24 experience a disproportionate economic hardship, 

25 the Administrator shall extend the small refinery 
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1 exemption for such small refinery for no less 

2 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 paragraph 

8 (2) for the reason of disproportionate eco9 nomic hardship. In evaluating a hardship 

10 petition, the Administrator, in consultation 

11 with the Secretary of Energy, shall consider 

12 the findings of the study in addition to 

13 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 the 

23 small refinery beginning in the year following 

24 such notification. 
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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 ANAL7 YSIS.— 

8 ‘‘(A) ANALYSIS.— 

9 ‘‘(i) IN GENERAL.—Not later than 180 

10 days after the date of enactment of this sub11 section, and annually thereafter, the Federal 

12 Trade Commission shall perform a market 

13 concentration analysis of the ethanol pro14 duction industry using the Herfindahl15 Hirschman Index to determine whether 

16 there is sufficient competition among indus17 try participants to avoid price setting and 

18 other anticompetitive behavior. 

19 ‘‘(ii) SCORING.—For the purpose of 

20 scoring under clause (i) using the 

21 Herfindahl-Hirschman Index, all marketing 

22 arrangements among industry participants 

23 shall be considered. 

24 ‘‘(B) REPORT.—Not later than December 1, 

25 2005, and annually thereafter, the Federal Trade 
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1 Commission shall submit to Congress and the 

2 Administrator a report on the results of the mar3 ket concentration analysis performed under sub4 paragraph (A)(i).’’. 

5 (b) PENALTIES AND ENFORCEMENT.—Section 211(d) 

6 of the Clean Air Act (42 U.S.C. 7545(d)) is amended as 

7 follows: 

8 (1) In paragraph (1)— 

9 (A) in the first sentence, by striking ‘‘or 

10 (n)’’ each place it appears and inserting ‘‘(n), or 

11 (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 Information 

23 Administration) shall— 

24 (A) conduct, with respect to each conven25 tional gasoline use area and each reformulated 
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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 REQUIRE15 MENTS.—The Administrator of the Environmental 

16 Protection Agency (hereinafter in this subsection re17 ferred to as the ‘‘Administrator’’) may require any re18 finer, blender, or importer to keep such records and 

19 make such reports as are necessary to ensure that the 

20 survey conducted under paragraph (1) is accurate. 

21 The Administrator, to avoid duplicative requirements, 

22 shall rely, to the extent practicable, on existing re23 porting and recordkeeping requirements and other in24 formation available to the Administrator including 
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1 gasoline distribution patterns that include multistate 

2 use areas. 

3 (3) APPLICABLE LAW.—Activities carried out 

4 under this subsection shall be conducted in a manner 

5 designed to protect confidentiality of individual re6 sponses. 

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 tertiary 

11 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 virtue 

15 of the fact that it is, or contains, such a renewable fuel or 

16 MTBE, if it does not violate a control or prohibition im17 posed by the Administrator of the Environmental Protec18 tion Agency (hereinafter in this section referred to as the 

19 ‘‘Administrator’’) under section 211 of such Act, and the 

20 manufacturer is in compliance with all requests for infor21 mation under subsection (b) of such section 211 of such Act. 

22 If the safe harbor provided by this section does not apply, 

23 the existence of a claim of defective product shall be deter24 mined under otherwise applicable law. Nothing in this sub25 section shall be construed to affect the liability of any per-
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1 son for environmental remediation costs, drinking water 

2 contamination, negligence for spills or other reasonably 

3 foreseeable events, public or private nuisance, trespass, 

4 breach of warranty, breach of contract, or any other liabil5 ity other than liability based upon a claim of defective 

6 product. 

7 (b) EFFECTIVE DATE.—This section shall be effective 

8 as of September 5, 2003, and shall apply with respect to 

9 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 (here13 inafter in this section referred to as ‘‘MTBE’’) has 

14 been used nationwide at low levels in gasoline to re15 place 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 U.S.C. 

19 7401 et seq.) established a fuel oxygenate standard 

20 under which reformulated gasoline must contain at 

21 least 2 percent oxygen by weight; 

22 (3) at the time of the adoption of the fuel oxygen 

23 standard, Congress was aware that significant use of 

24 MTBE would result from the adoption of that stand25 ard, and that the use of MTBE would likely be im-
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1 portant to the cost-effective implementation of that 

2 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 MTBE 

15 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 of 

20 the oxygenate requirement for reformulated gaso21 line and to provide for a renewable fuels content 

22 requirement for motor fuel; and 

23 (7) it is appropriate for Congress to provide 

24 some limited transition assistance— 
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1 (A) to merchant producers of MTBE who 

2 produced MTBE in response to a market created 

3 by the oxygenate requirement contained in the 

4 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 reformu8 lated gasoline and from the decision to establish 

9 a date certain for action by the Environmental 

10 Protection Agency to prohibit the use of MTBE 

11 in gasoline. 

12 (b) PURPOSES.—The purpose of this section is to pro13 vide assistance to merchant producers of MTBE in making 

14 the transition from producing MTBE to producing other 

15 fuel additives. 

16 (c) MTBE MERCHANT PRODUCER CONVERSION AS17 SISTANCE.—Section 211(c) of the Clean Air Act (42 U.S.C. 

18 7545(c)) is amended by adding at the end the following: 

19 ‘‘(5) MTBE MERCHANT PRODUCER CONVERSION

20 ASSISTANCE.— 

21 ‘‘(A) IN GENERAL.— 

22 ‘‘(i) GRANTS.—The Secretary of En23 ergy, in consultation with the Adminis24 trator, may make grants to merchant pro25 ducers of methyl tertiary butyl ether (here-
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1 inafter in this subsection referred to as 

2 ‘MTBE’) in the United States to assist the 

3 producers in the conversion of eligible pro4 duction facilities described in subparagraph 

5 (C) to the production of iso-octane, iso6 octene, alkylates, or renewable fuels. 

7 ‘‘(ii) DETERMINATION.—The Adminis8 trator, in consultation with the Secretary of 

9 Energy, may determine that transition as10 sistance for the production of iso-octane, 

11 iso-octene, alkylates, or renewable fuels is 

12 inconsistent with the provisions of subpara13 graph (B) and, on that basis, may deny ap14 plications for grants authorized by this 

15 paragraph. 

16 ‘‘(B) FURTHER GRANTS.—The Secretary of 

17 Energy, in consultation with the Administrator, 

18 may also further make grants to merchant pro19 ducers of MTBE in the United States to assist 

20 the producers in the conversion of eligible pro21 duction facilities described in subparagraph (C) 

22 to the production of such other fuel additives 

23 (unless the Administrator determines that such 

24 fuel additives may reasonably be anticipated to 
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1 endanger public health or the environment) that, 

2 consistent with this subsection— 

3 ‘‘(i) have been registered and have been 

4 tested or are being tested in accordance with 

5 the requirements of this section; and 

6 ‘‘(ii) will contribute to replacing gaso7 line volumes lost as a result of amendments 

8 made to subsection (k) of this section by sec9 tion 1504(a) and 1506 of the Energy Policy 

10 Act of 2005. 

11 ‘‘(C) ELIGIBLE PRODUCTION FACILITIES.— 

12 A production facility shall be eligible to receive 

13 a grant under this paragraph if the production 

14 facility— 

15 ‘‘(i) is located in the United States; 

16 and 

17 ‘‘(ii) produced MTBE for consumption 

18 before April 1, 2003 and ceased production 

19 at any time after the date of enactment of 

20 this paragraph. 

21 ‘‘(D) AUTHORIZATION OF APPROPRIA22 TIONS.—There are authorized to be appropriated 

23 to carry out this paragraph $250,000,000 for 

24 each of fiscal years 2005 through 2012, to re25 main available until expended.’’. 
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1 SEC. 1504. USE OF MTBE. 

2 (a) IN GENERAL.—Subject to subsections (e) and (f), 

3 not later than December 31, 2014, the use of methyl tertiary 

4 butyl ether (hereinafter in this section referred to as 

5 ‘‘MTBE’’) in motor vehicle fuel in any State other than 

6 a State described in subsection (c) is prohibited. 

7 (b) REGULATIONS.—The Administrator of the Envi8 ronmental Protection Agency (hereafter referred to in this 

9 section as the ‘‘Administrator’’) shall promulgate regula10 tions to effect the prohibition in subsection (a). 

11 (c) STATES THAT AUTHORIZE USE.—A State de12 scribed in this subsection is a State in which the Governor 

13 of the State submits a notification to the Administrator au14 thorizing the use of MTBE in motor vehicle fuel sold or 

15 used in the State. 

16 (d) PUBLICATION OF NOTICE.—The Administrator 

17 shall publish in the Federal Register each notice submitted 

18 by a State under subsection (c). 

19 (e) TRACE QUANTITIES.—In carrying out subsection 

20 (a), the Administrator may allow trace quantities of 

21 MTBE, not to exceed 0.5 percent by volume, to be present 

22 in motor vehicle fuel in cases that the Administrator deter23 mines to be appropriate. 

24 (f) LIMITATION.—The Administrator, under authority 

25 of subsection (a), shall not prohibit or control the produc-
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1 tion of MTBE for export from the United States or for any 

2 other use other than for use in motor vehicle fuel. 

3 (g) EFFECT ON STATE LAW.—The amendments made 

4 by this title have no effect regarding any available author5 ity of States to limit the use of methyl tertiary butyl ether 

6 in motor vehicle fuel. 

7 SEC. 1505. NATIONAL ACADEMY OF SCIENCES REVIEW AND 

8 PRESIDENTIAL DETERMINATION. 

9 (a) NAS REVIEW.—Not later than May 31, 2013, the 

10 Secretary shall enter into an arrangement with the Na11 tional Academy of Sciences to review the use of methyl ter12 tiary butyl ether (hereafter referred to in this section as 

13 ‘‘MTBE’’) in fuel and fuel additives. The review shall only 

14 use the best available scientific information and data col15 lected by accepted methods or the best available means. The 

16 review shall examine the use of MTBE in fuel and fuel ad17 ditives, significant beneficial and detrimental effects of this 

18 use on environmental quality or public health or welfare 

19 including the costs and benefits of such effects, likely effects 

20 of controls or prohibitions on MTBE regarding fuel avail21 ability and price, and other appropriate and reasonable ac22 tions that are available to protect the environment or public 

23 health or welfare from any detrimental effects of the use 

24 of MTBE in fuel or fuel additives. The review shall be peer25 reviewed prior to publication and all supporting data and 
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1 analytical models shall be available to the public. The re2 view shall be completed no later than May 31, 2014. 

3 (b) PRESIDENTIAL DETERMINATION.—No later than 

4 June 30, 2014, the President may make a determination 

5 that restrictions on the use of MTBE to be implemented 

6 pursuant to section 1504 shall not take place and that the 

7 legal authority contained in section 1504 to prohibit the 

8 use of MTBE in motor vehicle fuel shall become null and 

9 void. 

10 SEC. 1506. ELIMINATION OF OXYGEN CONTENT REQUIRE11 MENT FOR REFORMULATED GASOLINE. 

12 (a) ELIMINATION.— 

13 (1) IN GENERAL.—Section 211(k) of the Clean 

14 Air Act (42 U.S.C. 7545(k)) is amended as follows: 

15 (A) In paragraph (2)— 

16 (i) in the second sentence of subpara17 graph (A), by striking ‘‘(including the oxy18 gen content requirement contained in sub19 paragraph (B))’’; 

20 (ii) by striking subparagraph (B); and 

21 (iii) by redesignating subparagraphs 

22 (C) and (D) as subparagraphs (B) and (C), 

23 respectively. 

24 (B) In paragraph (3)(A), by striking clause 

25 (v). 
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1 (C) In paragraph (7)— 

2 (i) in subparagraph (A)— 

3 (I) by striking clause (i); and 

4 (II) by redesignating clauses (ii) 

5 and (iii) as clauses (i) and (ii), respec6 tively; and 

7 (ii) in subparagraph (C)— 

8 (I) by striking clause (ii). 

9 (II) by redesignating clause (iii) 

10 as clause (ii). 

11 (2) EFFECTIVE DATE.—The amendments made 

12 by paragraph (1) take effect 270 days after the date 

13 of enactment of this Act, except that such amendments 

14 shall take effect upon such date of enactment in any 

15 State that has received a waiver under section 209(b) 

16 of the Clean Air Act. 

17 (b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS18 SION REDUCTIONS.—Section 211(k)(1) of the Clean Air Act 

19 (42 U.S.C. 7545(k)(1)) is amended as follows: 

20 (1) By striking ‘‘Within 1 year after the enact21 ment of the Clean Air Act Amendments of 1990,’’ and 

22 inserting the following: 

23 ‘‘(A) IN GENERAL.—Not later than Novem24 ber 15, 1991,’’. 

25 (2) By adding at the end the following: 
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1 ‘‘(B) MAINTENANCE OF TOXIC AIR POLLUT2 ANT EMISSIONS REDUCTIONS FROM REFORMU3 LATED GASOLINE.— 

4 ‘‘(i) DEFINITIONS.—In this subpara5 graph the term ‘PADD’ means a Petroleum 

6 Administration for Defense District. 

7 ‘‘(ii) REGULATIONS REGARDING EMIS8 SIONS OF TOXIC AIR POLLUTANTS.—Not 

9 later than 270 days after the date of enact10 ment of this subparagraph the Adminis11 trator shall establish, for each refinery or 

12 importer, standards for toxic air pollutants 

13 from use of the reformulated gasoline pro14 duced or distributed by the refinery or im15 porter that maintain the reduction of the 

16 average annual aggregate emissions of toxic 

17 air pollutants for reformulated gasoline pro18 duced or distributed by the refinery or im19 porter during calendar years 1999 and 

20 2000, determined on the basis of data col21 lected by the Administrator with respect to 

22 the refinery or importer. 

23 ‘‘(iii) STANDARDS APPLICABLE TO SPE24 CIFIC REFINERIES OR IMPORTERS.— 
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1 ‘‘(I) APPLICABILITY OF STAND2 ARDS.—For any calendar year, the 

3 standards applicable to a refinery or 

4 importer under clause (ii) shall apply 

5 to the quantity of gasoline produced or 

6 distributed by the refinery or importer 

7 in the calendar year only to the extent 

8 that the quantity is less than or equal 

9 to the average annual quantity of re10 formulated gasoline produced or dis11 tributed by the refinery or importer 

12 during calendar years 1999 and 2000. 

13 ‘‘(II) APPLICABILITY OF OTHER

14 STANDARDS.—For any calendar year, 

15 the quantity of gasoline produced or 

16 distributed by a refinery or importer 

17 that is in excess of the quantity subject 

18 to subclause (I) shall be subject to 

19 standards for toxic air pollutants pro20 mulgated under subparagraph (A) and 

21 paragraph (3)(B). 

22 ‘‘(iv) CREDIT PROGRAM.—The Admin23 istrator shall provide for the granting and 

24 use of credits for emissions of toxic air pol-
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1 lutants in the same manner as provided in 

2 paragraph (7). 

3 ‘‘(v) REGIONAL PROTECTION OF TOXICS

4 REDUCTION BASELINES.— 

5 ‘‘(I) IN GENERAL.—Not later than 

6 60 days after the date of enactment of 

7 this subparagraph, and not later than 

8 April 1 of each calendar year that be9 gins after that date of enactment, the 

10 Administrator shall publish in the 

11 Federal Register a report that specifies, 

12 with respect to the previous calendar 

13 year— 

14 ‘‘(aa) the quantity of refor15 mulated gasoline produced that is 

16 in excess of the average annual 

17 quantity of reformulated gasoline 

18 produced in 1999 and 2000; and 

19 ‘‘(bb) the reduction of the av20 erage annual aggregate emissions 

21 of toxic air pollutants in each 

22 PADD, based on retail survey 

23 data or data from other appro24 priate sources. 
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1 ‘‘(II) EFFECT OF FAILURE TO

2 MAINTAIN AGGREGATE TOXICS REDUC3 TIONS.—If, in any calendar year, the 

4 reduction of the average annual aggre5 gate emissions of toxic air pollutants 

6 in a PADD fails to meet or exceed the 

7 reduction of the average annual aggre8 gate emissions of toxic air pollutants 

9 in the PADD in calendar years 1999 

10 and 2000, the Administrator, not later 

11 than 90 days after the date of publica12 tion of the report for the calendar year 

13 under subclause (I), shall— 

14 ‘‘(aa) identify, to the max15 imum extent practicable, the rea16 sons for the failure, including the 

17 sources, volumes, and characteris18 tics of reformulated gasoline that 

19 contributed to the failure; and 

20 ‘‘(bb) promulgate revisions to 

21 the regulations promulgated under 

22 clause (ii), to take effect not ear23 lier than 180 days but not later 

24 than 270 days after the date of 

25 promulgation, to provide that, 
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1 notwithstanding clause (iii)(II), 

2 all reformulated gasoline produced 

3 or distributed at each refinery or 

4 importer shall meet the standards 

5 applicable under clause (ii) not 

6 later than April 1 of the year fol7 lowing the report in subclause (II) 

8 and for subsequent years. 

9 ‘‘(vi) REGULATIONS TO CONTROL HAZ10 ARDOUS AIR POLLUTANTS FROM MOTOR VE11 HICLES AND MOTOR VEHICLE FUELS.—Not 

12 later than July 1, 2005, the Administrator 

13 shall promulgate final regulations to control 

14 hazardous air pollutants from motor vehi15 cles and motor vehicle fuels, as provided for 

16 in section 80.1045 of title 40, Code of Fed17 eral Regulations (as in effect on the date of 

18 enactment of this subparagraph).’’. 

19 (c) CONSOLIDATION IN REFORMULATED GASOLINE

20 REGULATIONS.—Not later than 180 days after the date of 

21 enactment of this Act, the Administrator of the Environ22 mental Protection Agency shall revise the reformulated gas23 oline regulations under subpart D of part 80 of title 40, 

24 Code of Federal Regulations, to consolidate the regulations 

25 applicable to VOC-Control Regions 1 and 2 under section 
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1 80.41 of that title by eliminating the less stringent require2 ments applicable to gasoline designated for VOC-Control 

3 Region 2 and instead applying the more stringent require4 ments applicable to gasoline designated for VOC-Control 

5 Region 1. 

6 (d) SAVINGS CLAUSE.—Nothing in this section is in7 tended to affect or prejudice either any legal claims or ac8 tions with respect to regulations promulgated by the Ad9 ministrator of the Environmental Protection Agency (here10 inafter in this subsection referred to as the ‘‘Adminis11 trator’’) prior to the date of enactment of this Act regarding 

12 emissions of toxic air pollutants from motor vehicles or the 

13 adjustment of standards applicable to a specific refinery or 

14 importer made under such prior regulations and the Ad15 ministrator may apply such adjustments to the standards 

16 applicable to such refinery or importer under clause (iii)(I) 

17 of section 211(k)(1)(B) of the Clean Air Act, except that— 

18 (1) the Administrator shall revise such adjust19 ments to be based only on calendar years 1999–2000; 

20 and 

21 (2) for adjustments based on toxic air pollutant 

22 emissions from reformulated gasoline significantly 

23 below the national annual average emissions of toxic 

24 air pollutants from all reformulated gasoline, the Ad25 ministrator may revise such adjustments to take ac-
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1 count of the scope of Federal or State prohibitions on 

2 the use of methyl tertiary butyl ether imposed after 

3 the date of the enactment of this paragraph, except 

4 that any such adjustment shall require such refiner or 

5 importer, to the greatest extent practicable, to main6 tain the reduction achieved during calendar years 

7 1999–2000 in the average annual aggregate emissions 

8 of toxic air pollutants from reformulated gasoline pro9 duced or distributed by the refinery or importer; Pro10 vided, that any such adjustment shall not be made at 

11 a level below the average percentage of reductions of 

12 emissions of toxic air pollutants for reformulated gas13 oline supplied to PADD I during calendar years 

14 1999–2000. 

15 SEC. 1507. ANALYSES OF MOTOR VEHICLE FUEL CHANGES. 

16 Section 211 of the Clean Air Act (42 U.S.C. 7545) is 

17 amended by inserting after subsection (o) the following: 

18 ‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES

19 AND EMISSIONS MODEL.— 

20 ‘‘(1) ANTI-BACKSLIDING ANALYSIS.— 

21 ‘‘(A) DRAFT ANALYSIS.—Not later than 4 

22 years after the date of enactment of this sub23 section, the Administrator shall publish for pub24 lic comment a draft analysis of the changes in 

25 emissions of air pollutants and air quality due 
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1 to the use of motor vehicle fuel and fuel additives 

2 resulting from implementation of the amend3 ments made by subtitle A of title XV of the En4 ergy Policy Act of 2005. 

5 ‘‘(B) FINAL ANALYSIS.—After providing a 

6 reasonable opportunity for comment but not 

7 later than 5 years after the date of enactment of 

8 this paragraph, the Administrator shall publish 

9 the analysis in final form. 

10 ‘‘(2) EMISSIONS MODEL.—For the purposes of 

11 this subsection, as soon as the necessary data are 

12 available, the Administrator shall develop and final13 ize an emissions model that reasonably reflects the ef14 fects of gasoline characteristics or components on 

15 emissions from vehicles in the motor vehicle fleet dur16 ing calendar year 2005.’’. 

17 SEC. 1508. DATA COLLECTION. 

18 Section 205 of the Department of Energy Organization 

19 Act (42 U.S.C. 7135) is amended by adding at the end the 

20 following: 

21 ‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to 

22 improve the ability to evaluate the effectiveness of the Na23 tion’s renewable fuels mandate, the Administrator shall con24 duct and publish the results of a survey of renewable fuels 

25 demand in the motor vehicle fuels market in the United 
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1 States monthly, and in a manner designed to protect the 

2 confidentiality of individual responses. In conducting the 

3 survey, the Administrator shall collect information both on 

4 a national and regional basis, including each of the fol5 lowing: 

6 ‘‘(A) The quantity of renewable fuels produced. 

7 ‘‘(B) The quantity of renewable fuels blended. 

8 ‘‘(C) The quantity of renewable fuels imported. 

9 ‘‘(D) The quantity of renewable fuels demanded. 

10 ‘‘(E) Market price data. 

11 ‘‘(F) Such other analyses or evaluations as the 

12 Administrator finds is necessary to achieve the pur13 poses of this section. 

14 ‘‘(2) The Administrator shall also collect or estimate 

15 information both on a national and regional basis, pursu16 ant to subparagraphs (A) through (F) of paragraph (1), 

17 for the 5 years prior to implementation of this subsection. 

18 ‘‘(3) This subsection does not affect the authority of 

19 the Administrator to collect data under section 52 of the 

20 Federal Energy Administration Act of 1974 (15 U.S.C. 

21 790a).’’. 

22 SEC. 1509. REDUCING THE PROLIFERATION OF STATE FUEL 

23 CONTROLS. 

24 (a) EPA APPROVAL OF STATE PLANS WITH FUEL

25 CONTROLS.—Section 211(c)(4)(C) of the Clean Air Act (42 
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1 U.S.C. 7545(c)(4)(C)) is amended by adding at the end the 

2 following: ‘‘The Administrator shall not approve a control 

3 or prohibition respecting the use of a fuel or fuel additive 

4 under this subparagraph unless the Administrator, after 

5 consultation with the Secretary of Energy, publishes in the 

6 Federal Register a finding that, in the Administrator’s 

7 judgment, such control or prohibition will not cause fuel 

8 supply or distribution interruptions or have a significant 

9 adverse impact on fuel producibility in the affected area 

10 or contiguous areas.’’. 

11 (b) STUDY.—The Administrator of the Environmental 

12 Protection Agency (hereinafter in this subsection referred 

13 to as the ‘‘Administrator’’), in cooperation with the Sec14 retary of Energy, shall undertake a study of the projected 

15 effects on air quality, the proliferation of fuel blends, fuel 

16 availability, and fuel costs of providing a preference for 

17 each of the following: 

18 (A) Reformulated gasoline referred to in sub19 section (k) of section 211 of the Clean Air Act. 

20 (B) A low RVP gasoline blend that has been cer21 tified by the Administrator as having a Reid Vapor 

22 Pressure of 7.0 pounds per square inch (psi). 

23 (C) A low RVP gasoline blend that has been cer24 tified by the Administrator as having a Reid Vapor 

25 Pressure of 7.8 pounds per square inch (psi). 
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1 In carrying out such study, the Administrator shall obtain 

2 comments from affected parties. The Administrator shall 

3 submit the results of such study to the Congress not later 

4 than 18 months after the date of enactment of this Act, to5 gether with any recommended legislative changes. 

6 SEC. 1510. FUEL SYSTEM REQUIREMENTS HARMONIZATION 

7 STUDY. 

8 (a) STUDY.— 

9 (1) IN GENERAL.—The Administrator of the En10 vironmental Protection Agency (hereinafter in this 

11 section referred to as the ‘‘Administrator’’) and the 

12 Secretary of Energy shall jointly conduct a study of 

13 Federal, State, and local requirements concerning 

14 motor vehicle fuels, including— 

15 (A) requirements relating to reformulated 

16 gasoline, volatility (measured in Reid vapor 

17 pressure), oxygenated fuel, and diesel fuel; and 

18 (B) other requirements that vary from State 

19 to State, region to region, or locality to locality. 

20 (2) REQUIRED ELEMENTS.—The study shall as21 sess— 

22 (A) the effect of the variety of requirements 

23 described in paragraph (1) on the supply, qual24 ity, and price of motor vehicle fuels available to 

25 consumers in various States and localities; 
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1 (B) the effect of the requirements described 

2 in paragraph (1) on achievement of— 

3 (i) national, regional, and local air 

4 quality standards and goals; and 

5 (ii) related environmental and public 

6 health protection standards and goals; 

7 (C) the effect of Federal, State, and local 

8 motor vehicle fuel regulations, including multiple 

9 motor vehicle fuel requirements, on— 

10 (i) domestic refineries; 

11 (ii) the fuel distribution system; and 

12 (iii) industry investment in new ca13 pacity; 

14 (D) the effect of the requirements described 

15 in paragraph (1) on emissions from vehicles, re16 fineries, and fuel handling facilities; 

17 (E) the feasibility of developing national or 

18 regional motor vehicle fuel slates for the 48 con19 tiguous States that, while improving air quality 

20 at the national, regional and local levels con21 sistent with the attainment of national ambient 

22 air quality standards, could— 

23 (i) enhance flexibility in the fuel dis24 tribution infrastructure and improve fuel 

25 fungibility; 
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1 (ii) reduce price volatility and costs to 

2 consumers and producers; 

3 (iii) provide increased liquidity to the 

4 gasoline market; and 

5 (iv) enhance fuel quality, consistency, 

6 and supply; 

7 (F) the feasibility of providing incentives to 

8 promote cleaner burning motor vehicle fuel; and 

9 (G) the extent to which improvements in air 

10 quality and any increases or decreases in the 

11 price of motor fuel can be projected to result 

12 from the Environmental Protection Agency’s 

13 Tier II requirements for conventional gasoline 

14 and vehicle emission systems, the reformulated 

15 gasoline program, the renewable content require16 ments established by this subtitle, State pro17 grams regarding gasoline volatility, and any 

18 other requirements imposed by States or local19 ities affecting the composition of motor fuel. 

20 (b) REPORT.— 

21 (1) IN GENERAL.—Not later than December 31, 

22 2007, the Administrator and the Secretary of Energy 

23 shall submit to Congress a report on the results of the 

24 study conducted under subsection (a). 

25 (2) RECOMMENDATIONS.— 
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1 (A) IN GENERAL.—The report under this 

2 subsection shall contain recommendations for leg3 islative and administrative actions that may be 

4 taken— 

5 (i) to improve air quality; 

6 (ii) to reduce costs to consumers and 

7 producers; and 

8 (iii) to increase supply liquidity. 

9 (B) REQUIRED CONSIDERATIONS.—The rec10 ommendations under subparagraph (A) shall 

11 take into account the need to provide advance 

12 notice of required modifications to refinery and 

13 fuel distribution systems in order to ensure an 

14 adequate supply of motor vehicle fuel in all 

15 States. 

16 (3) CONSULTATION.—In developing the report 

17 under this subsection, the Administrator and the Sec18 retary of Energy shall consult with— 

19 (A) the Governors of the States; 

20 (B) automobile manufacturers; 

21 (C) motor vehicle fuel producers and dis22 tributors; and 

23 (D) the public. 
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1 SEC. 1511. COMMERCIAL BYPRODUCTS FROM MUNICIPAL 

2 SOLID WASTE AND CELLULOSIC BIOMASS 

3 LOAN GUARANTEE PROGRAM. 

4 (a) DEFINITION OF MUNICIPAL SOLID WASTE.—In 

5 this section, the term ‘‘municipal solid waste’’ has the 

6 meaning given the term ‘‘solid waste’’ in section 1004 of 

7 the Solid Waste Disposal Act (42 U.S.C. 6903). 

8 (b) ESTABLISHMENT OF PROGRAM.—The Secretary of 

9 Energy (hereinafter in this section referred to as the ‘‘Sec10 retary’’) shall establish a program to provide guarantees of 

11 loans by private institutions for the construction of facili12 ties for the processing and conversion of municipal solid 

13 waste and cellulosic biomass into fuel ethanol and other 

14 commercial byproducts. 

15 (c) REQUIREMENTS.—The Secretary may provide a 

16 loan guarantee under subsection (b) to an applicant if— 

17 (1) without a loan guarantee, credit is not avail18 able to the applicant under reasonable terms or condi19 tions sufficient to finance the construction of a facil20 ity described in subsection (b); 

21 (2) the prospective earning power of the appli22 cant and the character and value of the security 

23 pledged provide a reasonable assurance of repayment 

24 of the loan to be guaranteed in accordance with the 

25 terms of the loan; and 
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1 (3) the loan bears interest at a rate determined 

2 by the Secretary to be reasonable, taking into account 

3 the current average yield on outstanding obligations 

4 of the United States with remaining periods of matu5 rity comparable to the maturity of the loan. 

6 (d) CRITERIA.—In selecting recipients of loan guaran7 tees from among applicants, the Secretary shall give pref8 erence to proposals that— 

9 (1) meet all applicable Federal and State per10 mitting requirements; 

11 (2) are most likely to be successful; and 

12 (3) are located in local markets that have the 

13 greatest need for the facility because of— 

14 (A) the limited availability of land for 

15 waste disposal; 

16 (B) the availability of sufficient quantities 

17 of cellulosic biomass; or 

18 (C) a high level of demand for fuel ethanol 

19 or other commercial byproducts of the facility. 

20 (e) MATURITY.—A loan guaranteed under subsection 

21 (b) shall have a maturity of not more than 20 years. 

22 (f) TERMS AND CONDITIONS.—The loan agreement for 

23 a loan guaranteed under subsection (b) shall provide that 

24 no provision of the loan agreement may be amended or 

25 waived without the consent of the Secretary. 
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1 (g) ASSURANCE OF REPAYMENT.—The Secretary shall 

2 require that an applicant for a loan guarantee under sub3 section (b) provide an assurance of repayment in the form 

4 of a performance bond, insurance, collateral, or other means 

5 acceptable to the Secretary in an amount equal to not less 

6 than 20 percent of the amount of the loan. 

7 (h) GUARANTEE FEE.—The recipient of a loan guar8 antee under subsection (b) shall pay the Secretary an 

9 amount determined by the Secretary to be sufficient to cover 

10 the administrative costs of the Secretary relating to the loan 

11 guarantee. 

12 (i) FULL FAITH AND CREDIT.—The full faith and 

13 credit of the United States is pledged to the payment of 

14 all guarantees made under this section. Any such guarantee 

15 made by the Secretary shall be conclusive evidence of the 

16 eligibility of the loan for the guarantee with respect to prin17 cipal and interest. The validity of the guarantee shall be 

18 incontestable in the hands of a holder of the guaranteed 

19 loan. 

20 (j) REPORTS.—Until each guaranteed loan under this 

21 section has been repaid in full, the Secretary shall annually 

22 submit to Congress a report on the activities of the Sec23 retary under this section. 
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1 (k) AUTHORIZATION OF APPROPRIATIONS.—There are 

2 authorized to be appropriated such sums as are necessary 

3 to carry out this section. 

4 (l) TERMINATION OF AUTHORITY.—The authority of 

5 the Secretary to issue a loan guarantee under subsection 

6 (b) terminates on the date that is 10 years after the date 

7 of enactment of this Act. 

8 SEC. 1512. CELLULOSIC BIOMASS AND WASTE-DERIVED 

9 ETHANOL CONVERSION ASSISTANCE. 

10 Section 211 of the Clean Air Act (42 U.S.C. 7545) is 

11 amended by adding at the end the following: 

12 ‘‘(r) CELLULOSIC BIOMASS AND WASTE-DERIVED

13 ETHANOL CONVERSION ASSISTANCE.— 

14 ‘‘(1) IN GENERAL.—The Secretary of Energy 

15 may provide grants to merchant producers of cel16 lulosic biomass ethanol and waste-derived ethanol in 

17 the United States to assist the producers in building 

18 eligible production facilities described in paragraph 

19 (2) for the production of ethanol. 

20 ‘‘(2) ELIGIBLE PRODUCTION FACILITIES.—A pro21 duction facility shall be eligible to receive a grant 

22 under this subsection if the production facility— 

23 ‘‘(A) is located in the United States; and 

24 ‘‘(B) uses cellulosic biomass or waste-de25 rived feedstocks derived from agricultural resi-
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1 dues, wood residues, municipal solid waste, or 

2 agricultural byproducts as that term is used in 

3 section 919 of the Energy Policy Act of 2005. 

4 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 

5 There are authorized to be appropriated the following 

6 amounts to carry out this subsection: 

7 ‘‘(A) $100,000,000 for fiscal year 2005. 

8 ‘‘(B) $250,000,000 for fiscal year 2006. 

9 ‘‘(C) $400,000,000 for fiscal year 2007.’’. 

10 SEC. 1513. BLENDING OF COMPLIANT REFORMULATED GAS11 OLINES. 

12 Section 211 of the Clean Air Act (42 U.S.C. 7545) is 

13 amended by adding at the end the following: 

14 ‘‘(s) BLENDING OF COMPLIANT REFORMULATED GASO15 LINES.— 

16 ‘‘(1) IN GENERAL.—Notwithstanding subsections 

17 (h) and (k) and subject to the limitations in para18 graph (2) of this subsection, it shall not be a violation 

19 of this subtitle for a gasoline retailer, during any 

20 month of the year, to blend at a retail location 

21 batches of ethanol-blended and non-ethanol-blended re22 formulated gasoline, provided that— 

23 ‘‘(A) each batch of gasoline to be blended 

24 has been individually certified as in compliance 
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1 with subsections (h) and (k) prior to being blend2 ed; 

3 ‘‘(B) the retailer notifies the Administrator 

4 prior to such blending, and identifies the exact 

5 location of the retail station and the specific 

6 tank in which such blending will take place; 

7 ‘‘(C) the retailer retains and, as requested 

8 by the Administrator or the Administrator’s des9 ignee, makes available for inspection such certifi10 cations accounting for all gasoline at the retail 

11 outlet; and 

12 ‘‘(D) the retailer does not, between June 1 

13 and September 15 of each year, blend a batch of 

14 VOC-controlled, or ‘summer’, gasoline with a 

15 batch of non-VOC-controlled, or ‘winter’, gasoline 

16 (as these terms are defined under subsections (h) 

17 and (k)). 

18 ‘‘(2) LIMITATIONS.— 

19 ‘‘(A) FREQUENCY LIMITATION.—A retailer shall 

20 only be permitted to blend batches of compliant refor21 mulated gasoline under this subsection a maximum of 

22 two blending periods between May 1 and September 

23 15 of each calendar year. 

24 ‘‘(B) DURATION OF BLENDING PERIOD.—Each 

25 blending period authorized under subparagraph (A) 
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1 shall extend for a period of no more than 10 consecu2 tive calendar days. 

3 ‘‘(3) SURVEYS.—A sample of gasoline taken from 

4 a retail location that has blended gasoline within the 

5 past 30 days and is in compliance with subpara6 graphs (A), (B), (C), and (D) of paragraph (1) shall 

7 not be used in a VOC survey mandated by 40 C.F.R. 

8 Part 80. 

9 ‘‘(4) STATE IMPLEMENTATION PLANS.—A State 

10 shall be held harmless and shall not be required to re11 vise its State implementation plan under section 110 

12 to account for the emissions from blended gasoline au13 thorized under paragraph (1). 

14 ‘‘(5) PRESERVATION OF STATE LAW.—Nothing in 

15 this subsection shall— 

16 ‘‘(A) preempt existing State laws or regula17 tions regulating the blending of compliant gaso18 lines; or 

19 ‘‘(B) prohibit a State from adopting such 

20 restrictions in the future. 

21 ‘‘(6) REGULATIONS.—The Administrator shall 

22 promulgate, after notice and comment, regulations 

23 implementing this subsection within one year after 

24 the date of enactment of this subsection. 
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1 ‘‘(7) EFFECTIVE DATE.—This subsection shall be2 come effective 15 months after the date of its enact3 ment and shall apply to blended batches of reformu4 lated gasoline on or after that date, regardless of 

5 whether the implementing regulations required by 

6 paragraph (6) have been promulgated by the Admin7 istrator by that date. 

8 ‘‘(8) LIABILITY.—No person other than the per9 son responsible for blending under this subsection 

10 shall be subject to an enforcement action or penalties 

11 under subsection (d) solely arising from the blending 

12 of compliant reformulated gasolines by the retailers. 

13 ‘‘(9) FORMULATION OF GASOLINE.—This sub14 section does not grant authority to the Administrator 

15 or any State (or any subdivision thereof) to require 

16 reformulation of gasoline at the refinery to adjust for 

17 potential or actual emissions increases due to the 

18 blending authorized by this subsection.’’. 

19 Subtitle B—Underground Storage 

20 Tank Compliance 

21 SEC. 1521. SHORT TITLE. 

22 This subtitle may be cited as the ‘‘Underground Stor23 age Tank Compliance Act of 2005’’. 
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1 SEC. 1522. LEAKING UNDERGROUND STORAGE TANKS. 

2 (a) IN GENERAL.—Section 9004 of the Solid Waste 

3 Disposal Act (42 U.S.C. 6991c) is amended by adding at 

4 the end the following: 

5 ‘‘(f) TRUST FUND DISTRIBUTION.— 

6 ‘‘(1) IN GENERAL.— 

7 ‘‘(A) AMOUNT AND PERMITTED USES OF

8 DISTRIBUTION.—The Administrator shall dis9 tribute to States not less than 80 percent of the 

10 funds from the Trust Fund that are made avail11 able to the Administrator under section 

12 9014(2)(A) for each fiscal year for use in paying 

13 the reasonable costs, incurred under a coopera14 tive agreement with any State for— 

15 ‘‘(i) corrective actions taken by the 

16 State under section 9003(h)(7)(A); 

17 ‘‘(ii) necessary administrative ex18 penses, as determined by the Administrator, 

19 that are directly related to State fund or 

20 State assurance programs under subsection 

21 (c)(1); or 

22 ‘‘(iii) enforcement, by a State or a 

23 local government, of State or local regula24 tions pertaining to underground storage 

25 tanks regulated under this subtitle. 
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1 ‘‘(B) USE OF FUNDS FOR ENFORCEMENT.— 

2 In addition to the uses of funds authorized under 

3 subparagraph (A), the Administrator may use 

4 funds from the Trust Fund that are not distrib5 uted to States under subparagraph (A) for en6 forcement of any regulation promulgated by the 

7 Administrator under this subtitle. 

8 ‘‘(C) PROHIBITED USES.—Funds provided 

9 to a State by the Administrator under subpara10 graph (A) shall not be used by the State to pro11 vide financial assistance to an owner or operator 

12 to meet any requirement relating to underground 

13 storage tanks under subparts B, C, D, H, and G 

14 of part 280 of title 40, Code of Federal Regula15 tions (as in effect on the date of enactment of 

16 this subsection). 

17 ‘‘(2) ALLOCATION.— 

18 ‘‘(A) PROCESS.—Subject to subparagraphs 

19 (B) and (C), in the case of a State with which 

20 the Administrator has entered into a cooperative 

21 agreement under section 9003(h)(7)(A), the Ad22 ministrator shall distribute funds from the Trust 

23 Fund to the State using an allocation process de24 veloped by the Administrator. 
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1 ‘‘(B) DIVERSION OF STATE FUNDS.—The 

2 Administrator shall not distribute funds under 

3 subparagraph (A)(iii) of subsection (f)(1) to any 

4 State that has diverted funds from a State fund 

5 or State assurance program for purposes other 

6 than those related to the regulation of under7 ground storage tanks covered by this subtitle, 

8 with the exception of those transfers that had 

9 been completed earlier than the date of enact10 ment of this subsection. 

11 ‘‘(C) REVISIONS TO PROCESS.—The Admin12 istrator may revise the allocation process referred 

13 to in subparagraph (A) after— 

14 ‘‘(i) consulting with State agencies re15 sponsible for overseeing corrective action for 

16 releases from underground storage tanks; 

17 and 

18 ‘‘(ii) taking into consideration, at a 

19 minimum, each of the following: 

20 ‘‘(I) The number of confirmed re21 leases from federally regulated leaking 

22 underground storage tanks in the 

23 States. 
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1 ‘‘(II) The number of federally reg2 ulated underground storage tanks in 

3 the States. 

4 ‘‘(III) The performance of the 

5 States in implementing and enforcing 

6 the program. 

7 ‘‘(IV) The financial needs of the 

8 States. 

9 ‘‘(V) The ability of the States to 

10 use the funds referred to in subpara11 graph (A) in any year. 

12 ‘‘(3) DISTRIBUTIONS TO STATE AGENCIES.—Dis13 tributions from the Trust Fund under this subsection 

14 shall be made directly to a State agency that— 

15 ‘‘(A) enters into a cooperative agreement re16 ferred to in paragraph (2)(A); or 

17 ‘‘(B) is enforcing a State program approved 

18 under this section.’’. 

19 (b) WITHDRAWAL OF APPROVAL OF STATE FUNDS.— 

20 Section 9004(c) of the Solid Waste Disposal Act (42 U.S.C. 

21 6991c(c)) is amended by inserting the following new para22 graph at the end thereof: 

23 ‘‘(6) WITHDRAWAL OF APPROVAL.—After an op24 portunity for good faith, collaborative efforts to cor25 rect financial deficiencies with a State fund, the Ad-
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1 ministrator may withdraw approval of any State 

2 fund or State assurance program to be used as a fi3 nancial responsibility mechanism without with4 drawing approval of a State underground storage 

5 tank program under section 9004(a).’’. 

6 (c) ABILITY TO PAY.—Section 9003(h)(6) of the Solid 

7 Waste Disposal Act (42 U.S.C. 6591a(h)(6)) is amended by 

8 adding the following new subparagraph at the end thereof: 

9 ‘‘(E) INABILITY OR LIMITED ABILITY TO

10 PAY.— 

11 ‘‘(i) IN GENERAL.—In determining the 

12 level of recovery effort, or amount that 

13 should be recovered, the Administrator (or 

14 the State pursuant to paragraph (7)) shall 

15 consider the owner or operator’s ability to 

16 pay. An inability or limited ability to pay 

17 corrective action costs must be demonstrated 

18 to the Administrator (or the State pursuant 

19 to paragraph (7)) by the owner or operator. 

20 ‘‘(ii) CONSIDERATIONS.—In deter21 mining whether or not a demonstration is 

22 made under clause (i), the Administrator 

23 (or the State pursuant to paragraph (7)) 

24 shall take into consideration the ability of 

25 the owner or operator to pay corrective ac-
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1 tion costs and still maintain its basic busi2 ness operations, including consideration of 

3 the overall financial condition of the owner 

4 or operator and demonstrable constraints on 

5 the ability of the owner or operator to raise 

6 revenues. 

7 ‘‘(iii) INFORMATION.—An owner or op8 erator requesting consideration under this 

9 subparagraph shall promptly provide the 

10 Administrator (or the State pursuant to 

11 paragraph (7)) with all relevant informa12 tion needed to determine the ability of the 

13 owner or operator to pay corrective action 

14 costs. 

15 ‘‘(iv) ALTERNATIVE PAYMENT METH16 ODS.—The Administrator (or the State pur17 suant to paragraph (7)) shall consider al18 ternative payment methods as may be nec19 essary or appropriate if the Administrator 

20 (or the State pursuant to paragraph (7)) 

21 determines that an owner or operator can22 not pay all or a portion of the costs in a 

23 lump sum payment. 

24 ‘‘(v) MISREPRESENTATION.—If an 

25 owner or operator provides false informa-
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1 tion or otherwise misrepresents their finan2 cial situation under clause (ii), the Admin3 istrator (or the State pursuant to para4 graph (7)) shall seek full recovery of the 

5 costs of all such actions pursuant to the 

6 provisions of subparagraph (A) without 

7 consideration of the factors in subparagraph 

8 (B).’’. 

9 SEC. 1523. INSPECTION OF UNDERGROUND STORAGE 

10 TANKS. 

11 (a) INSPECTION REQUIREMENTS.—Section 9005 of the 

12 Solid Waste Disposal Act (42 U.S.C. 6991d) is amended 

13 by inserting the following new subsection at the end thereof: 

14 ‘‘(c) INSPECTION REQUIREMENTS.— 

15 ‘‘(1) UNINSPECTED TANKS.—In the case of un16 derground storage tanks regulated under this subtitle 

17 that have not undergone an inspection since December 

18 22, 1998, not later than 2 years after the date of en19 actment of this subsection, the Administrator or a 

20 State that receives funding under this subtitle, as ap21 propriate, shall conduct on-site inspections of all such 

22 tanks to determine compliance with this subtitle and 

23 the regulations under this subtitle (40 C.F.R. 280) or 

24 a requirement or standard of a State program devel25 oped under section 9004. 
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1 ‘‘(2) PERIODIC INSPECTIONS.—After completion 

2 of all inspections required under paragraph (1), the 

3 Administrator or a State that receives funding under 

4 this subtitle, as appropriate, shall conduct on-site in5 spections of each underground storage tank regulated 

6 under this subtitle at least once every 3 years to de7 termine compliance with this subtitle and the regula8 tions under this subtitle (40 C.F.R. 280) or a require9 ment or standard of a State program developed under 

10 section 9004. The Administrator may extend for up 

11 to one additional year the first 3-year inspection in12 terval under this paragraph if the State demonstrates 

13 that it has insufficient resources to complete all such 

14 inspections within the first 3-year period. 

15 ‘‘(3) INSPECTION AUTHORITY.—Nothing in this 

16 section shall be construed to diminish the Administra17 tor’s or a State’s authorities under section 9005(a).’’. 

18 (b) STUDY OF ALTERNATIVE INSPECTION PRO19 GRAMS.—The Administrator of the Environmental Protec20 tion Agency, in coordination with a State, shall gather in21 formation on compliance assurance programs that could 

22 serve as an alternative to the inspection programs under 

23 section 9005(c) of the Solid Waste Disposal Act (42 U.S.C. 

24 6991d(c)) and shall, within 4 years after the date of enact-
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1 ment of this Act, submit a report to the Congress containing 

2 the results of such study. 

3 SEC. 1524. OPERATOR TRAINING. 

4 (a) IN GENERAL.—Section 9010 of the Solid Waste 

5 Disposal Act (42 U.S.C. 6991i) is amended to read as fol6 lows: 

7 ‘‘SEC. 9010. OPERATOR TRAINING. 

8 ‘‘(a) GUIDELINES.— 

9 ‘‘(1) IN GENERAL.—Not later than 2 years after 

10 the date of enactment of the Underground Storage 

11 Tank Compliance Act of 2005, in consultation and 

12 cooperation with States and after public notice and 

13 opportunity for comment, the Administrator shall 

14 publish guidelines that specify training requirements 

15 for— 

16 ‘‘(A) persons having primary responsibility 

17 for on-site operation and maintenance of under18 ground storage tank systems; 

19 ‘‘(B) persons having daily on-site responsi20 bility for the operation and maintenance of un21 derground storage tanks systems; and 

22 ‘‘(C) daily, on-site employees having pri23 mary responsibility for addressing emergencies 

24 presented by a spill or release from an under25 ground storage tank system. 
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1 ‘‘(2) CONSIDERATIONS.—The guidelines described 

2 in paragraph (1) shall take into account— 

3 ‘‘(A) State training programs in existence 

4 as of the date of publication of the guidelines; 

5 ‘‘(B) training programs that are being em6 ployed by tank owners and tank operators as of 

7 the date of enactment of the Underground Stor8 age Tank Compliance Act of 2005; 

9 ‘‘(C) the high turnover rate of tank opera10 tors and other personnel; 

11 ‘‘(D) the frequency of improvement in un12 derground storage tank equipment technology; 

13 ‘‘(E) the nature of the businesses in which 

14 the tank operators are engaged; 

15 ‘‘(F) the substantial differences in the scope 

16 and length of training needed for the different 

17 classes of persons described in subparagraphs 

18 (A), (B), and (C) of paragraph (1); and 

19 ‘‘(G) such other factors as the Administrator 

20 determines to be necessary to carry out this sec21 tion. 

22 ‘‘(b) STATE PROGRAMS.— 

23 ‘‘(1) IN GENERAL.—Not later than 2 years after 

24 the date on which the Administrator publishes the 

25 guidelines under subsection (a)(1), each State that re-
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1 ceives funding under this subtitle shall develop State2 specific training requirements that are consistent 

3 with the guidelines developed under subsection (a)(1). 

4 ‘‘(2) REQUIREMENTS.—State requirements de5 scribed in paragraph (1) shall— 

6 ‘‘(A) be consistent with subsection (a); 

7 ‘‘(B) be developed in cooperation with tank 

8 owners and tank operators; 

9 ‘‘(C) take into consideration training pro10 grams implemented by tank owners and tank op11 erators as of the date of enactment of this sec12 tion; and 

13 ‘‘(D) be appropriately communicated to 

14 tank owners and operators. 

15 ‘‘(3) FINANCIAL INCENTIVE.—The Administrator 

16 may award to a State that develops and implements 

17 requirements described in paragraph (1), in addition 

18 to any funds that the State is entitled to receive 

19 under this subtitle, not more than $200,000, to be 

20 used to carry out the requirements. 

21 ‘‘(c) TRAINING.—All persons that are subject to the op22 erator training requirements of subsection (a) shall— 

23 ‘‘(1) meet the training requirements developed 

24 under subsection (b); and 
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1 ‘‘(2) repeat the applicable requirements developed 

2 under subsection (b), if the tank for which they have 

3 primary daily on-site management responsibilities is 

4 determined to be out of compliance with— 

5 ‘‘(A) a requirement or standard promul6 gated by the Administrator under section 9003; 

7 or 

8 ‘‘(B) a requirement or standard of a State 

9 program approved under section 9004.’’. 

10 (b) STATE PROGRAM REQUIREMENT.—Section 

11 9004(a) of the Solid Waste Disposal Act (42 U.S.C. 

12 6991c(a)) is amended by striking ‘‘and’’ at the end of para13 graph (7), by striking the period at the end of paragraph 

14 (8) and inserting ‘‘; and’’, and by adding the following new 

15 paragraph at the end thereof: 

16 ‘‘(9) State-specific training requirements as re17 quired by section 9010.’’. 

18 (c) ENFORCEMENT.—Section 9006(d)(2) of such Act 

19 (42 U.S.C. 6991e) is amended as follows: 

20 (1) By striking ‘‘or’’ at the end of subparagraph 

21 (B). 

22 (2) By adding the following new subparagraph 

23 after subparagraph (C): 
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1 ‘‘(D) the training requirements established by 

2 States pursuant to section 9010 (relating to operator 

3 training); or’’. 

4 (d) TABLE OF CONTENTS.—The item relating to sec5 tion 9010 in table of contents for the Solid Waste Disposal 

6 Act is amended to read as follows: 

‘‘Sec. 9010. Operator training.’’. 

7 SEC. 1525. REMEDIATION FROM OXYGENATED FUEL ADDI8 TIVES. 

9 Section 9003(h) of the Solid Waste Disposal Act (42 

10 U.S.C. 6991b(h)) is amended as follows: 

11 (1) In paragraph (7)(A)— 

12 (A) by striking ‘‘paragraphs (1) and (2) of 

13 this subsection’’ and inserting ‘‘paragraphs (1), 

14 (2), and (12)’’ ; and 

15 (B) by striking ‘‘and including the authori16 ties of paragraphs (4), (6), and (8) of this sub17 section’’ and inserting ‘‘and the authority under 

18 sections 9011 and 9012 and paragraphs (4), (6), 

19 and (8),’’. 

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

21 ‘‘(12) REMEDIATION OF OXYGENATED FUEL CON22 TAMINATION.— 

23 ‘‘(A) IN GENERAL.—The Administrator and 

24 the States may use funds made available under 

25 section 9014(2)(B) to carry out corrective actions 
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1 with respect to a release of a fuel containing an 

2 oxygenated fuel additive that presents a threat to 

3 human health or welfare or the environment. 

4 ‘‘(B) APPLICABLE AUTHORITY.—The Ad5 ministrator or a State shall carry out subpara6 graph (A) in accordance with paragraph (2), 

7 and in the case of a State, in accordance with 

8 a cooperative agreement entered into by the Ad9 ministrator and the State under paragraph 

10 (7).’’. 

11 SEC. 1526. RELEASE PREVENTION, COMPLIANCE, AND EN12 FORCEMENT. 

13 (a) RELEASE PREVENTION AND COMPLIANCE.—Sub14 title I of the Solid Waste Disposal Act (42 U.S.C. 6991 et 

15 seq.) is amended by adding at the end the following: 

16 ‘‘SEC. 9011. USE OF FUNDS FOR RELEASE PREVENTION AND 

17 COMPLIANCE. 

18 ‘‘Funds made available under section 9014(2)(D) from 

19 the Trust Fund may be used to conduct inspections, issue 

20 orders, or bring actions under this subtitle— 

21 ‘‘(1) by a State, in accordance with a grant or 

22 cooperative agreement with the Administrator, of 

23 State regulations pertaining to underground storage 

24 tanks regulated under this subtitle; and 
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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 the 

5 Solid Waste Disposal Act (42 U.S.C. 6991b) is amended 

6 by adding at the end the following: 

7 ‘‘(i) GOVERNMENT-OWNED TANKS.— 

8 ‘‘(1) STATE COMPLIANCE REPORT.—(A) Not later 

9 than 2 years after the date of enactment of this sub10 section, each State that receives funding under this 

11 subtitle shall submit to the Administrator a State 

12 compliance report that— 

13 ‘‘(i) lists the location and owner of each un14 derground 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 inspection 

19 and describes the actions that have been and will 

20 be taken to ensure compliance of the under21 ground storage tank listed under clause (i) with 

22 this subtitle. 

23 ‘‘(B) An underground storage tank described in 

24 this subparagraph is an underground storage tank 

25 that is— 
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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 Administrator 

8 may award to a State that develops a report de9 scribed 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 does 

14 not relieve any person from any obligation or require15 ment under this subtitle.’’. 

16 (c) PUBLIC RECORD.—Section 9002 of the Solid Waste 

17 Disposal Act (42 U.S.C. 6991a) is amended by adding at 

18 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 
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1 (after consultation with States), a record of under2 ground storage tanks regulated under this subtitle. 

3 ‘‘(2) CONSIDERATIONS.—To the maximum extent 

4 practicable, the public record of a State, respectively, 

5 shall include, for each year— 

6 ‘‘(A) the number, sources, and causes of un7 derground 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 of 

16 the Solid Waste Disposal Act (42 U.S.C. 6991e) is amended 

17 by adding at the end the following: 

18 ‘‘(e) INCENTIVE FOR PERFORMANCE.—Both of the fol19 lowing may be taken into account in determining the terms 

20 of a civil penalty under subsection (d): 

21 ‘‘(1) The compliance history of an owner or oper22 ator in accordance with this subtitle or a program 

23 approved under section 9004. 

24 ‘‘(2) Any other factor the Administrator con25 siders appropriate.’’. 
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1 (e) TABLE OF CONTENTS.—The table of contents for 

2 such subtitle I is amended by adding the following new item 

3 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 DEPOSIT.— 

11 Beginning 2 years after the date of enactment of this 

12 section, it shall be unlawful to deliver to, deposit into, 

13 or accept a regulated substance into an underground 

14 storage tank at a facility which has been identified by 

15 the Administrator or a State implementing agency to 

16 be ineligible for fuel delivery or deposit. 

17 ‘‘(2) GUIDANCE.—Within 1 year after the date of 

18 enactment of this section, the Administrator and 

19 States that receive funding under this subtitle shall, 

20 in consultation with the underground storage tank 

21 owner and product delivery industries, for territory 

22 for which they are the primary implementing agen23 cies, publish guidelines detailing the specific processes 

24 and procedures they will use to implement the provi-
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1 sions of this section. The processes and procedures in2 clude, 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 deter13 mining, the specified geographic areas subject to 

14 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 within 

19 24 months after the date of enactment of this sec20 tion a Delivery Prohibition Roster listing under21 ground storage tanks under the Administrator’s 

22 or the State’s jurisdiction that are determined to 

23 be ineligible for delivery or deposit pursuant to 

24 paragraph (2). 
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1 ‘‘(B) NOTIFICATION.—The Administrator 

2 and each State, as appropriate, shall make read3 ily known, to underground storage tank owners 

4 and operators and to product delivery industries, 

5 the underground storage tanks listed on a Deliv6 ery Prohibition Roster by: 

7 ‘‘(i) posting such Rosters, including the 

8 physical location and street address of each 

9 listed underground storage tank, on official 

10 web sites and, if the Administrator or the 

11 State so chooses, other electronic means; 

12 ‘‘(ii) updating these Rosters periodi13 cally; and 

14 ‘‘(iii) installing a tamper-proof tag, 

15 seal, or other device blocking the fill pipes 

16 of such underground storage tanks to pre17 vent the delivery of product into such un18 derground storage tanks. 

19 ‘‘(C) ROSTER UPDATES.—The Adminis20 trator and the State shall update the Delivery 

21 Prohibition Rosters as appropriate, but not less 

22 than once a month on the first day of the month. 

23 ‘‘(D) TAMPERING WITH DEVICE.— 

24 ‘‘(i) PROHIBITION.—It shall be unlaw25 ful for any person, other than an authorized 
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1 representative of the Administrator or a 

2 State, as appropriate, to remove, tamper 

3 with, destroy, or damage a device installed 

4 by the Administrator or a State, as appro5 priate, under subparagraph (B)(iii) of this 

6 subsection. 

7 ‘‘(ii) CIVIL PENALTIES.—Any person 

8 violating clause (i) of this subparagraph 

9 shall be subject to a civil penalty not to ex10 ceed $10,000 for each violation. 

11 ‘‘(4) LIMITATION.— 

12 ‘‘(A) RURAL AND REMOTE AREAS.—Subject 

13 to subparagraph (B), the Administrator or a 

14 State shall not include an underground storage 

15 tank on a Delivery Prohibition Roster under 

16 paragraph (3) if an urgent threat to public 

17 health, as determined by the Administrator, does 

18 not exist and if such a delivery prohibition 

19 would jeopardize the availability of, or access to, 

20 fuel in any rural and remote areas. 

21 ‘‘(B) APPLICABILITY OF LIMITATION.—The 

22 limitation under subparagraph (A) shall apply 

23 only during the 180-day period following the 

24 date of a determination by the Administrator or 

25 the appropriate State that exercising the author-
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1 ity of paragraph (3) is limited by subparagraph 

2 (A). 

3 ‘‘(b) EFFECT ON STATE AUTHORITY.—Nothing in this 

4 section shall affect the authority of a State to prohibit the 

5 delivery of a regulated substance to an underground storage 

6 tank. 

7 ‘‘(c) DEFENSE TO VIOLATION.—A person shall not be 

8 in violation of subsection (a)(1) if the underground storage 

9 tank into which a regulated substance is delivered is not 

10 listed on the Administrator’s or the appropriate State’s 

11 Prohibited Delivery Roster 7 calendar days prior to the de12 livery being made.’’. 

13 (b) ENFORCEMENT.—Section 9006(d)(2) of such Act 

14 (42 U.S.C. 6991e(d)(2)) is amended as follows: 

15 (1) By adding the following new subparagraph 

16 after subparagraph (D): 

17 ‘‘(E) the delivery prohibition requirement estab18 lished by section 9012,’’. 

19 (2) By adding the following new sentence at the 

20 end thereof: ‘‘Any person making or accepting a deliv21 ery or deposit of a regulated substance to an under22 ground storage tank at an ineligible facility in viola23 tion of section 9012 shall also be subject to the same 

24 civil penalty for each day of such violation.’’. 
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1 (c) TABLE OF CONTENTS.—The table of contents for 

2 such subtitle I is amended by adding the following new item 

3 at the end thereof: 

‘‘Sec. 9012. Delivery prohibition.’’. 

4 SEC. 1528. FEDERAL FACILITIES. 

5 Section 9007 of the Solid Waste Disposal Act (42 

6 U.S.C. 6991f) is amended to read as follows: 

7 ‘‘SEC. 9007. FEDERAL FACILITIES. 

8 ‘‘(a) IN GENERAL.—Each department, agency, and in9 strumentality of the executive, legislative, and judicial 

10 branches of the Federal Government (1) having jurisdiction 

11 over any underground storage tank or underground storage 

12 tank system, or (2) engaged in any activity resulting, or 

13 which may result, in the installation, operation, manage14 ment, or closure of any underground storage tank, release 

15 response activities related thereto, or in the delivery, accept16 ance, or deposit of any regulated substance to an under17 ground storage tank or underground storage tank system 

18 shall be subject to, and comply with, all Federal, State, 

19 interstate, and local requirements, both substantive and 

20 procedural (including any requirement for permits or re21 porting or any provisions for injunctive relief and such 

22 sanctions as may be imposed by a court to enforce such 

23 relief), respecting underground storage tanks in the same 

24 manner, and to the same extent, as any person is subject 

25 to such requirements, including the payment of reasonable 
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1 service charges. The Federal, State, interstate, and local 

2 substantive and procedural requirements referred to in this 

3 subsection include, but are not limited to, all administra4 tive orders and all civil and administrative penalties and 

5 fines, regardless of whether such penalties or fines are puni6 tive or coercive in nature or are imposed for isolated, inter7 mittent, or continuing violations. The United States hereby 

8 expressly waives any immunity otherwise applicable to the 

9 United States with respect to any such substantive or proce10 dural requirement (including, but not limited to, any in11 junctive relief, administrative order or civil or administra12 tive penalty or fine referred to in the preceding sentence, 

13 or reasonable service charge). The reasonable service charges 

14 referred to in this subsection include, but are not limited 

15 to, fees or charges assessed in connection with the processing 

16 and issuance of permits, renewal of permits, amendments 

17 to permits, review of plans, studies, and other documents, 

18 and inspection and monitoring of facilities, as well as any 

19 other nondiscriminatory charges that are assessed in con20 nection with a Federal, State, interstate, or local under21 ground storage tank regulatory program. Neither the 

22 United States, nor any agent, employee, or officer thereof, 

23 shall be immune or exempt from any process or sanction 

24 of any State or Federal Court with respect to the enforce25 ment of any such injunctive relief. No agent, employee, or 
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1 officer of the United States shall be personally liable for 

2 any civil penalty under any Federal, State, interstate, or 

3 local law concerning underground storage tanks with re4 spect to any act or omission within the scope of the official 

5 duties of the agent, employee, or officer. An agent, employee, 

6 or officer of the United States shall be subject to any crimi7 nal sanction (including, but not limited to, any fine or im8 prisonment) under any Federal or State law concerning un9 derground storage tanks, but no department, agency, or in10 strumentality of the executive, legislative, or judicial branch 

11 of the Federal Government shall be subject to any such sanc12 tion. The President may exempt any underground storage 

13 tank of any department, agency, or instrumentality in the 

14 executive branch from compliance with such a requirement 

15 if he determines it to be in the paramount interest of the 

16 United States to do so. No such exemption shall be granted 

17 due to lack of appropriation unless the President shall have 

18 specifically requested such appropriation as a part of the 

19 budgetary process and the Congress shall have failed to 

20 make available such requested appropriation. Any exemp21 tion shall be for a period not in excess of one year, but 

22 additional exemptions may be granted for periods not to 

23 exceed one year upon the President’s making a new deter24 mination. The President shall report each January to the 

25 Congress all exemptions from the requirements of this sec-
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1 tion granted during the preceding calendar year, together 

2 with his reason for granting each such exemption. 

3 ‘‘(b) REVIEW OF AND REPORT ON FEDERAL UNDER4 GROUND STORAGE TANKS.— 

5 ‘‘(1) REVIEW.—Not later than 12 months after 

6 the date of enactment of the Underground Storage 

7 Tank Compliance Act of 2005, each Federal agency 

8 that owns or operates 1 or more underground storage 

9 tanks, or that manages land on which 1 or more un10 derground storage tanks are located, shall submit to 

11 the Administrator, the Committee on Energy and 

12 Commerce of the United States House of Representa13 tives, and the Committee on the Environment and 

14 Public Works of the United States Senate a compli15 ance strategy report that— 

16 ‘‘(A) lists the location and owner of each 

17 underground storage tank described in this para18 graph; 

19 ‘‘(B) lists all tanks that are not in compli20 ance with this subtitle that are owned or oper21 ated by the Federal agency; 

22 ‘‘(C) specifies the date of the last inspection 

23 by a State or Federal inspector of each under24 ground storage tank owned or operated by the 

25 agency; 
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1 ‘‘(D) lists each violation of this subtitle re2 specting any underground storage tank owned or 

3 operated by the agency; 

4 ‘‘(E) describes the operator training that 

5 has been provided to the operator and other per6 sons having primary daily on-site management 

7 responsibility for the operation and maintenance 

8 of underground storage tanks owned or operated 

9 by the agency; and 

10 ‘‘(F) describes the actions that have been 

11 and will be taken to ensure compliance for each 

12 underground storage tank identified under sub13 paragraph (B). 

14 ‘‘(2) NOT A SAFE HARBOR.—This subsection does 

15 not relieve any person from any obligation or require16 ment under this subtitle.’’. 

17 SEC. 1529. TANKS ON TRIBAL LANDS. 

18 (a) IN GENERAL.—Subtitle I of the Solid Waste Dis19 posal Act (42 U.S.C. 6991 et seq.) is amended by adding 

20 the following at the end thereof: 

21 ‘‘SEC. 9013. TANKS ON TRIBAL LANDS. 

22 ‘‘(a) STRATEGY.—The Administrator, in coordination 

23 with Indian tribes, shall, not later than 1 year after the 

24 date of enactment of this section, develop and implement 

25 a strategy— 
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1 ‘‘(1) giving priority to releases that present the 

2 greatest threat to human health or the environment, 

3 to take necessary corrective action in response to re4 leases from leaking underground storage tanks located 

5 wholly within the boundaries of— 

6 ‘‘(A) an Indian reservation; or 

7 ‘‘(B) any other area under the jurisdiction 

8 of an Indian tribe; and 

9 ‘‘(2) to implement and enforce requirements con10 cerning underground storage tanks located wholly 

11 within the boundaries of— 

12 ‘‘(A) an Indian reservation; or 

13 ‘‘(B) any other area under the jurisdiction 

14 of an Indian tribe. 

15 ‘‘(b) REPORT.—Not later than 2 years after the date 

16 of enactment of this section, the Administrator shall submit 

17 to Congress a report that summarizes the status of imple18 mentation and enforcement of this subtitle in areas located 

19 wholly within— 

20 ‘‘(1) the boundaries of Indian reservations; and 

21 ‘‘(2) any other areas under the jurisdiction of an 

22 Indian tribe. 

23 The Administrator shall make the report under this sub24 section available to the public. 
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1 ‘‘(c) NOT A SAFE HARBOR.—This section does not re2 lieve any person from any obligation or requirement under 

3 this subtitle. 

4 ‘‘(d) STATE AUTHORITY.—Nothing in this section ap5 plies to any underground storage tank that is located in 

6 an area under the jurisdiction of a State, or that is subject 

7 to regulation by a State, as of the date of enactment of this 

8 section.’’. 

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

10 such subtitle I is amended by adding the following new item 

11 at the end thereof: 

‘‘Sec. 9013. Tanks on Tribal lands.’’. 

12 SEC. 1530. ADDITIONAL MEASURES TO PROTECT GROUND13 WATER. 

14 (a) IN GENERAL.—Section 9003 of the Solid Waste 

15 Disposal Act (42 U.S.C. 6991b) is amended by adding the 

16 following new subsection at the end: 

17 ‘‘(i) ADDITIONAL MEASURES TO PROTECT GROUND18 WATER FROM CONTAIMINATION.—The Administrator shall 

19 require each State that receives funding under this subtitle 

20 to require one of the following: 

21 ‘‘(1) TANK AND PIPING SECONDARY CONTAIN22 MENT.—(A) Each new underground storage tank, or 

23 piping connected to any such new tank, installed 

24 after the effective date of this subsection, or any exist25 ing underground storage tank, or existing piping con-
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1 nected to such existing tank, that is replaced after the 

2 effective date of this subsection, shall be secondarily 

3 contained and monitored for leaks if the new or re4 placed underground storage tank or piping is within 

5 1,000 feet of any existing community water system or 

6 any existing potable drinking water well. 

7 ‘‘(B) In the case of a new underground storage 

8 tank system consisting of one or more underground 

9 storage tanks and connected by piping, subparagraph 

10 (A) shall apply to all underground storage tanks and 

11 connected pipes comprising such system. 

12 ‘‘(C) In the case of a replacement of an existing 

13 underground storage tank or existing piping con14 nected to the underground storage tank, subparagraph 

15 (A) shall apply only to the specific underground stor16 age tank or piping being replaced, not to other under17 ground storage tanks and connected pipes comprising 

18 such system. 

19 ‘‘(D) Each installation of a new motor fuel dis20 penser system, after the effective date of this sub21 section, shall include under-dispenser spill contain22 ment if the new dispenser is within 1,000 feet of any 

23 existing community water system or any existing po24 table drinking water well. 
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1 ‘‘(E) This paragraph shall not apply to repairs 

2 to an underground storage tank, piping, or dispenser 

3 that are meant to restore a tank, pipe, or dispenser 

4 to operating condition 

5 ‘‘(F) As used in this subsection: 

6 ‘‘(i) The term ‘secondarily contained’ means 

7 a release detection and prevention system that 

8 meets the requirements of 40 CFR 280.43(g), but 

9 shall not include under-dispenser spill contain10 ment or control systems. 

11 ‘‘(ii) The term ‘underground storage tank’ 

12 has the meaning given to it in section 9001, ex13 cept that such term does not include tank com14 binations or more than a single underground 

15 pipe connected to a tank. 

16 ‘‘(iii) The term ‘installation of a new motor 

17 fuel dispenser system’ means the installation of 

18 a new motor fuel dispenser and the equipment 

19 necessary to connect the dispenser to the under20 ground storage tank system, but does not mean 

21 the installation of a motor fuel dispenser in22 stalled separately from the equipment need to 

23 connect the dispenser to the underground storage 

24 tank system. 
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1 ‘‘(G) The Administrator may issue regulations 

2 or guidelines implementing the requirements of this 

3 subsection. 

4 ‘‘(2) EVIDENCE OF FINANCIAL RESPONSIBILITY

5 AND CERTIFICATION.— 

6 ‘‘(A) MANUFACTURER AND INSTALLER FI7 NANCIAL RESPONSIBILITY.—A person that manu8 factures an underground storage tank or piping 

9 for an underground storage tank system or that 

10 installs an underground storage tank system is 

11 required to maintain evidence of financial re12 sponsibility under section 9003(d) in order to 

13 provide for the costs of corrective actions directly 

14 related to releases caused by improper manufac15 ture or installation unless the person can dem16 onstrate themselves to be already covered as an 

17 owner or operator of an underground storage 

18 tank under section 9003. 

19 ‘‘(B) INSTALLER CERTIFICATION.—The Ad20 ministrator and each State that receives funding 

21 under this subtitle, as appropriate, shall require 

22 that a person that installs an underground stor23 age tank system is— 

24 ‘‘(i) certified or licensed by the tank 

25 and piping manufacturer; 
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1 ‘‘(ii) certified or licensed by the Ad2 ministrator or a State, as appropriate; 

3 ‘‘(iii) has their underground storage 

4 tank system installation certified by a reg5 istered professional engineer with education 

6 and experience in underground storage tank 

7 system installation; 

8 ‘‘(iv) has had their installation of the 

9 underground storage tank inspected and ap10 proved by the Administrator or the State, 

11 as appropriate; 

12 ‘‘(v) compliant with a code of practice 

13 developed by a nationally recognized asso14 ciation of independent testing laboratory 

15 and in accordance with the manufacturers 

16 instructions; or 

17 ‘‘(vi) compliant with another method 

18 that is determined by the Administrator or 

19 a State, as appropriate, to be no less protec20 tive of human health and the environ21 ment.’’. 

22 (b) EFFECTIVE DATE.—This subsection shall take ef23 fect 18 months after the date of enactment of this subsection 

24 (c) PROMULGATION OF REGULATIONS OR GUIDE25 LINES.—The Administrator shall issue regulations or 
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1 guidelines implementing the requirements of this subsection, 

2 including guidance to differentiate between the terms ‘‘re3 pair’’ and ‘‘replace’’ for the purposes of section 9003(i)(1) 

4 of the Solid Waste Disposal Act. 

5 (d) PENALTIES.—Section 9006(d)(2) of such Act (42 

6 U.S.C. 6991e(d)(2)) is amended by adding the following 

7 new subparagraph after subparagraph (C): 

8 ‘‘(D) the requirements establishd in section 

9 9003(i),’’. 

10 SEC. 1531. AUTHORIZATION OF APPROPRIATIONS. 

11 (a) IN GENERAL.—Subtitle I of the Solid Waste Dis12 posal Act (42 U.S.C. 6991 et seq.) is amended by adding 

13 at the end the following: 

14 ‘‘SEC. 9014. AUTHORIZATION OF APPROPRIATIONS. 

15 ‘‘There are authorized to be appropriated to the Ad16 ministrator the following amounts: 

17 ‘‘(1) To carry out subtitle I (except sections 

18 9003(h), 9005(c), 9011 and 9012) $50,000,000 for 

19 each of fiscal years 2005 through 2009. 

20 ‘‘(2) From the Trust Fund, notwithstanding sec21 tion 9508(c)(1) of the Internal Revenue Code of 1986: 

22 ‘‘(A) to carry out section 9003(h) (except 

23 section 9003(h)(12)) $200,000,000 for each of fis24 cal years 2005 through 2009; 
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1 ‘‘(B) to carry out section 9003(h)(12), 

2 $200,000,000 for each of fiscal years 2005 

3 through 2009; 

4 ‘‘(C) to carry out sections 9004(f) and 

5 9005(c) $100,000,000 for each of fiscal years 

6 2005 through 2009; and 

7 ‘‘(D) to carry out sections 9011 and 9012 

8 $55,000,000 for each of fiscal years 2005 through 

9 2009.’’. 

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

11 such subtitle I is amended by adding the following new item 

12 at the end thereof: 

‘‘Sec. 9014. Authorization of appropriations.’’. 

13 SEC. 1532. CONFORMING AMENDMENTS. 

14 (a) IN GENERAL.—Section 9001 of the Solid Waste 

15 Disposal Act (42 U.S.C. 6991) is amended as follows: 

16 (1) By striking ‘‘For the purposes of this sub17 title—’’ and inserting ‘‘In this subtitle:’’. 

18 (2) By redesignating paragraphs (1), (2), (3), 

19 (4), (5), (6), (7), and (8) as paragraphs (10), (7), (4), 

20 (3), (8), (5), (2), and (6), respectively. 

21 (3) By inserting before paragraph (2) (as redes22 ignated by paragraph (2) of this subsection) the fol23 lowing: 

24 ‘‘(1) INDIAN TRIBE.— 
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1 ‘‘(A) IN GENERAL.—The term ‘Indian tribe’ 

2 means any Indian tribe, band, nation, or other 

3 organized group or community that is recognized 

4 as being eligible for special programs and serv5 ices provided by the United States to Indians be6 cause of their status as Indians. 

7 ‘‘(B) INCLUSIONS.—The term ‘Indian tribe’ 

8 includes an Alaska Native village, as defined in 

9 or established under the Alaska Native Claims 

10 Settlement Act (43 U.S.C. 1601 et seq.).’’. 

11 (4) By inserting after paragraph (8) (as redesig12 nated by paragraph (2) of this subsection) the fol13 lowing: 

14 ‘‘(9) TRUST FUND.—The term ‘Trust Fund’ 

15 means the Leaking Underground Storage Tank Trust 

16 Fund established by section 9508 of the Internal Rev17 enue Code of 1986.’’. 

18 (b) CONFORMING AMENDMENTS.—The Solid Waste 

19 Disposal Act (42 U.S.C. 6901 and following) is amended 

20 as follows: 

21 (1) Section 9003(f) (42 U.S.C. 6991b(f)) is 

22 amended— 

23 (A) in paragraph (1), by striking 

24 ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 
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1 (B) in paragraphs (2) and (3), by striking 

2 ‘‘9001(2)(A)’’ each place it appears and insert3 ing ‘‘9001(7)(A)’’. 

4 (2) Section 9003(h) (42 U.S.C. 6991b(h)) is 

5 amended in paragraphs (1), (2)(C), (7)(A), and (11) 

6 by striking ‘‘Leaking Underground Storage Tank 

7 Trust Fund’’ each place it appears and inserting 

8 ‘‘Trust Fund’’. 

9 (3) Section 9009 (42 U.S.C. 6991h) is amend10 ed— 

11 (A) in subsection (a), by striking 

12 ‘‘9001(2)(B)’’ and inserting ‘‘9001(7)(B)’’; and 

13 (B) in subsection (d), by striking ‘‘section 

14 9001(1) (A) and (B)’’ and inserting ‘‘subpara15 graphs (A) and (B) of section 9001(10)’’. 

16 SEC. 1533. TECHNICAL AMENDMENTS. 

17 The Solid Waste Disposal Act is amended as follows: 

18 (1) Section 9001(4)(A) (42 U.S.C. 6991(4)(A)) is 

19 amended by striking ‘‘sustances’’ and inserting ‘‘sub20 stances’’. 

21 (2) Section 9003(f)(1) (42 U.S.C. 6991b(f)(1)) is 

22 amended by striking ‘‘subsection (c) and (d) of this 

23 section’’ and inserting ‘‘subsections (c) and (d)’’. 

24 (3) Section 9004(a) (42 U.S.C. 6991c(a)) is 

25 amended by striking ‘‘in 9001(2) (A) or (B) or both’’ 
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1 and inserting ‘‘in subparagraph (A) or (B) of section 

2 9001(7)’’. 

3 (4) Section 9005 (42 U.S.C. 6991d) is amend4 ed— 

5 (A) in subsection (a), by striking ‘‘study 

6 taking’’ and inserting ‘‘study, taking’’; 

7 (B) in subsection (b)(1), by striking 

8 ‘‘relevent’’ and inserting ‘‘relevant’’; and 

9 (C) in subsection (b)(4), by striking 

10 ‘‘Evironmental’’ and inserting ‘‘Environmental’’. 

11 Subtitle C—Boutique Fuels 

12 SEC. 1541. REDUCING THE PROLIFERATION OF BOUTIQUE 

13 FUELS. 

14 (a) TEMPORARY WAIVERS DURING SUPPLY EMER15 GENCIES.—Section 211(c)(4)(C) of the Clean Air Act (42 

16 U.S.C. 7545(c)(4)(C)) is amended by inserting ‘‘(i)’’ after 

17 ‘‘(C)’’ and by adding the following new clauses at the end 

18 thereof: 

19 ‘‘(ii) The Administrator may temporarily waive a con20 trol or prohibition respecting the use of a fuel or fuel addi21 tive required or regulated by the Administrator pursuant 

22 to subsection (c), (h), (i), (k), or (m) of this section or pre23 scribed in an applicable implementation plan under section 

24 110 approved by the Administrator under clause (i) of this 

25 subparagraph if, after consultation with, and concurrence 
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1 by, the Secretary of Energy, the Administrator determines 

2 that— 

3 ‘‘(I) extreme and unusual fuel or fuel additive 

4 supply circumstances exist in a State or region of the 

5 Nation which prevent the distribution of an adequate 

6 supply of the fuel or fuel additive to consumers; 

7 ‘‘(II) such extreme and unusual fuel and fuel ad8 ditive supply circumstances are the result of a nat9 ural disaster, an Act of God, a pipeline or refinery 

10 equipment failure, or another event that could not 

11 reasonably have been foreseen or prevented and not 

12 the lack of prudent planning on the part of the sup13 pliers of the fuel or fuel additive to such State or re14 gion; and 

15 ‘‘(III) it is in the public interest to grant the 

16 waiver (for example, when a waiver is necessary to 

17 meet projected temporary shortfalls in the supply of 

18 the fuel or fuel additive in a State or region of the 

19 Nation which cannot otherwise be compensated for). 

20 ‘‘(iii) If the Administrator makes the determinations 

21 required under clause (ii), such a temporary extreme and 

22 unusual fuel and fuel additive supply circumstances waiver 

23 shall be permitted only if— 
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1 ‘‘(I) the waiver applies to the smallest geographic 

2 area necessary to address the extreme and unusual 

3 fuel and fuel additive supply circumstances; 

4 ‘‘(II) the waiver is effective for a period of 20 

5 calendar days or, if the Administrator determines 

6 that a shorter waiver period is adequate, for the 

7 shortest practicable time period necessary to permit 

8 the correction of the extreme and unusual fuel and 

9 fuel additive supply circumstances and to mitigate 

10 impact on air quality; 

11 ‘‘(III) the waiver permits a transitional period, 

12 the exact duration of which shall be determined by the 

13 Administrator, after the termination of the temporary 

14 waiver to permit wholesalers and retailers to blend 

15 down their wholesale and retail inventory; 

16 ‘‘(IV) the waiver applies to all persons in the 

17 motor fuel distribution system; and 

18 ‘‘(V) the Administrator has given public notice 

19 to all parties in the motor fuel distribution system, 

20 and local and State regulators, in the State or region 

21 to be covered by the waiver. 

22 The term ‘motor fuel distribution system’ as used in this 

23 clause shall be defined by the Administrator through rule24 making. 
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1 ‘‘(iv) Within 180 days of the date of enactment of this 

2 clause, the Administrator shall promulgate regulations to 

3 implement clauses (ii) and (iii). 

4 ‘‘(v) Nothing in this subparagraph shall— 

5 ‘‘(I) limit or otherwise affect the application of 

6 any other waiver authority of the Administrator pur7 suant to this section or pursuant to a regulation pro8 mulgated pursuant to this section; and 

9 ‘‘(II) subject any State or person to an enforce10 ment action, penalties, or liability solely arising from 

11 actions taken pursuant to the issuance of a waiver 

12 under this subparagraph.’’. 

13 (b) LIMIT ON NUMBER OF BOUTIQUE FUELS.—Section 

14 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 7545(c)(4)), 

15 as amended by subsection (a), is further amended by adding 

16 at the end the following: 

17 ‘‘(vi)(I) The Administrator shall have no authority, 

18 when considering a State implementation plan or a State 

19 implementation plan revision, to approve under this para20 graph any fuel included in such plan or revision if the effect 

21 of such approval increases the total number of fuels ap22 proved under this paragraph as of September 1, 2004, in 

23 all State implementation plans. 

24 ‘‘(II) The Administrator, in consultation with the Sec25 retary of Energy, shall determine the total number of fuels 
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1 approved under this paragraph as of September 1, 2004, 

2 in all State implementation plans and shall publish a list 

3 of such fuels, including the states and Petroleum Adminis4 tration for Defense District in which they are used, in the 

5 Federal Register for public review and comment no later 

6 than 90 days after enactment. 

7 ‘‘(III) The Administrator shall remove a fuel from the 

8 list published under subclause (II) if a fuel ceases to be in9 cluded in a State implementation plan or if a fuel in a 

10 State implementation plan is identical to a Federal fuel 

11 formulation implemented by the Administrator, but the Ad12 ministrator shall not reduce the total number of fuels au13 thorized under the list published under subclause (II). 

14 ‘‘(IV) Subclause (I) shall not limit the Administrator’s 

15 authority to approve a control or prohibition respecting 

16 any new fuel under this paragraph in a State implementa17 tion plan or revision to a State implementation plan if such 

18 new fuel: 

19 ‘‘(aa) completely replaces a fuel on the list pub20 lished under subclause (II); or 

21 ‘‘(bb) does not increase the total number of fuels 

22 on the list published under subclause (II) as of Sep23 tember 1, 2004. 

24 In the event that the total number of fuels on the list pub25 lished under subclause (II) at the time of the Administra-
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1 tor’s consideration of a control or prohibition respecting a 

2 new fuel is lower than the total number of fuels on such 

3 list as of September 1, 2004, the Administrator may ap4 prove a control or prohibition respecting a new fuel under 

5 this subclause if the Administrator, after consultation with 

6 the Secretary of Energy, publishes in the Federal Register 

7 after notice and comment a finding that, in the Adminis8 trator’s judgment, such control or prohibition respecting a 

9 new fuel will not cause fuel supply or distribution interrup10 tions or have a significant adverse impact on fuel 

11 producibility in the affected area or contiguous areas. 

12 ‘‘(V) The Administrator shall have no authority under 

13 this paragraph, when considering any particular State’s 

14 implementation plan or a revision to that State’s imple15 mentation plan, to approve any fuel unless that fuel was, 

16 as of the date of such consideration, approved in at least 

17 one State implementation plan in the applicable Petroleum 

18 Administration for Defense District. However, the Adminis19 trator may approve as part of a State implementation plan 

20 or State implementation plan revision a fuel with a sum21 mertime Reid Vapor Pressure of 7.0 psi. In no event shall 

22 such approval by the Administrator cause an increase in 

23 the total number of fuels on the list published under sub24 clause (II). 
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1 ‘‘(VI) Nothing in this clause shall be construed to have 

2 any effect regarding any available authority of States to 

3 require the use of any fuel additive registered in accordance 

4 with subsection (b), including any fuel additive registered 

5 in accordance with subsection (b) after the enactment of this 

6 subclause.’’. 

7 (c) STUDY AND REPORT TO CONGRESS ON BOUTIQUE

8 FUELS.— 

9 (1) JOINT STUDY.—The Administrator of the 

10 Environmental Protection Agency and the Secretary 

11 of Energy shall undertake a study of the effects on air 

12 quality, on the number of fuel blends, on fuel avail13 ability, on fuel fungibility, and on fuel costs of the 

14 State plan provisions adopted pursuant to section 

15 211(c)(4)(C) of the Clean Air Act (42 U.S.C. 

16 7545(c)(4)(C)). 

17 (2) FOCUS OF STUDY.—The primary focus of the 

18 study required under paragraph (1) shall be to deter19 mine how to develop a Federal fuels system that 

20 maximizes motor fuel fungibility and supply, pre21 serves air quality standards, and reduces motor fuel 

22 price volatility that results from the proliferation of 

23 boutique fuels, and to recommend to Congress such 

24 legislative changes as are necessary to implement such 

25 a system. The study should include the impacts on 
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1 overall energy supply, distribution, and use as a re2 sult of the legislative changes recommended. 

3 (3) RESPONSIBILITY OF ADMINISTRATOR.—In 

4 carrying out the study required by this section, the 

5 Administrator shall coordinate obtaining comments 

6 from affected parties interested in the air quality im7 pact assessment portion of the study. The Adminis8 trator shall use sound and objective science practices, 

9 shall consider the best available science, and shall 

10 consider and include a description of the weight of the 

11 scientific evidence. 

12 (4) RESPONSIBILITY OF SECRETARY.—In car13 rying out the study required by this section, the Sec14 retary shall coordinate obtaining comments from af15 fected parties interested in the fuel availability, num16 ber of fuel blends, fuel fungibility and fuel costs por17 tion of the study. 

18 (5) REPORT TO CONGRESS.—The Administrator 

19 and the Secretary jointly shall submit the results of 

20 the study required by this section in a report to the 

21 Congress not later than 12 months after the date of 

22 the enactment of this Act, together with any rec23 ommended regulatory and legislative changes. Such 

24 report shall be submitted to the Committee on Energy 

25 and Commerce of the House of Representatives and 
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1 the Committee on Environment and Public Works of 

2 the Senate. 

3 (6) AUTHORIZATION OF APPROPRIATIONS.— 

4 There is authorized to be appropriated jointly to the 

5 Administrator and the Secretary $500,000 for the 

6 completion of the study required under this sub7 section. 

8 (d) DEFINITIONS.—In this section: 

9 (1) The term ‘‘Administrator’’ means the Admin10 istrator of the Environmental Protection Agency. 

11 (2) The term ‘‘Secretary’’ means the Secretary of 

12 Energy. 

13 (3) The term ‘‘fuel’’ means gasoline, diesel fuel, 

14 and any other liquid petroleum product commercially 

15 known as gasoline and diesel fuel for use in highway 

16 and nonroad motor vehicles. 

17 (4) The term ‘‘a control or prohibition respecting 

18 a new fuel’’ means a control or prohibition on the for19 mulation, composition, or emissions characteristics of 

20 a fuel that would require the increase or decrease of 

21 a constituent in gasoline or diesel fuel. 
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1 TITLE XVI—STUDIES 

2 SEC. 1601. STUDY ON INVENTORY OF PETROLEUM AND NAT3 URAL GAS STORAGE. 

4 (a) DEFINITION.—For purposes of this section ‘‘petro5 leum’’ means crude oil, motor gasoline, jet fuel, distillates, 

6 and propane. 

7 (b) STUDY.—The Secretary of Energy shall conduct a 

8 study on petroleum and natural gas storage capacity and 

9 operational inventory levels, nationwide and by major geo10 graphical regions. 

11 (c) CONTENTS.—The study shall address— 

12 (1) historical normal ranges for petroleum and 

13 natural gas inventory levels; 

14 (2) historical and projected storage capacity 

15 trends; 

16 (3) estimated operation inventory levels below 

17 which outages, delivery slowdown, rationing, inter18 ruptions in service, or other indicators of shortage 

19 begin to appear; 

20 (4) explanations for inventory levels dropping 

21 below normal ranges; and 

22 (5) the ability of industry to meet United States 

23 demand for petroleum and natural gas without short24 ages or price spikes, when inventory levels are below 

25 normal ranges. 
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1 (d) REPORT TO CONGRESS.—Not later than 1 year 

2 after the date of enactment of this Act, the Secretary of En3 ergy shall submit a report to Congress on the results of the 

4 study, including findings and any recommendations for 

5 preventing future supply shortages. 

6 SEC. 1605. STUDY OF ENERGY EFFICIENCY STANDARDS. 

7 The Secretary of Energy shall contract with the Na8 tional Academy of Sciences for a study, to be completed 

9 within 1 year after the date of enactment of this Act, to 

10 examine whether the goals of energy efficiency standards are 

11 best served by measurement of energy consumed, and effi12 ciency improvements, at the actual site of energy consump13 tion, or through the full fuel cycle, beginning at the source 

14 of energy production. The Secretary shall submit the report 

15 to Congress. 

16 SEC. 1606. TELECOMMUTING STUDY. 

17 (a) STUDY REQUIRED.—The Secretary, in consulta18 tion with the Commission, the Director of the Office of Per19 sonnel Management, the Administrator of General Services, 

20 and the Administrator of NTIA, shall conduct a study of 

21 the energy conservation implications of the widespread 

22 adoption of telecommuting by Federal employees in the 

23 United States. 

24 (b) REQUIRED SUBJECTS OF STUDY.—The study re25 quired by subsection (a) shall analyze the following subjects 
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1 in relation to the energy saving potential of telecommuting 

2 by Federal employees: 

3 (1) Reductions of energy use and energy costs in 

4 commuting and regular office heating, cooling, and 

5 other operations. 

6 (2) Other energy reductions accomplished by tele7 commuting. 

8 (3) Existing regulatory barriers that hamper 

9 telecommuting, including barriers to broadband tele10 communications services deployment. 

11 (4) Collateral benefits to the environment, family 

12 life, and other values. 

13 (c) REPORT REQUIRED.—The Secretary shall submit 

14 to the President and Congress a report on the study required 

15 by this section not later than 6 months after the date of 

16 enactment of this Act. Such report shall include a descrip17 tion of the results of the analysis of each of the subject de18 scribed in subsection (b). 

19 (d) DEFINITIONS.—As used in this section: 

20 (1) SECRETARY.—The term ‘‘Secretary’’ means 

21 the Secretary of Energy. 

22 (2) COMMISSION.—The term ‘‘Commission’’ 

23 means the Federal Communications Commission. 
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1 (3) NTIA.—The term ‘‘NTIA’’ means the Na2 tional Telecommunications and Information Admin3 istration of the Department of Commerce. 

4 (4) TELECOMMUTING.—The term ‘‘telecom5 muting’’ means the performance of work functions 

6 using communications technologies, thereby elimi7 nating or substantially reducing the need to commute 

8 to and from traditional worksites. 

9 (5) FEDERAL EMPLOYEE.—The term ‘‘Federal 

10 employee’’ has the meaning provided the term ‘‘em11 ployee’’ by section 2105 of title 5, United States Code. 

12 SEC. 1607. LIHEAP REPORT. 

13 Not later than 1 year after the date of enactment of 

14 this Act, the Secretary of Health and Human Services shall 

15 transmit to Congress a report on how the Low-Income 

16 Home Energy Assistance Program could be used more effec17 tively to prevent loss of life from extreme temperatures. In 

18 preparing such report, the Secretary shall consult with ap19 propriate officials in all 50 States and the District of Co20 lumbia. 

21 SEC. 1608. OIL BYPASS FILTRATION TECHNOLOGY. 

22 The Secretary of Energy and the Administrator of the 

23 Environmental Protection Agency shall— 
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1 (1) conduct a joint study of the benefits of oil by2 pass filtration technology in reducing demand for oil 

3 and protecting the environment; 

4 (2) examine the feasibility of using oil bypass 

5 filtration technology in Federal motor vehicle fleets; 

6 and 

7 (3) include in such study, prior to any deter8 mination of the feasibility of using oil bypass filtra9 tion technology, the evaluation of products and var10 ious manufacturers. 

11 SEC. 1609. TOTAL INTEGRATED THERMAL SYSTEMS. 

12 The Secretary of Energy shall— 

13 (1) conduct a study of the benefits of total inte14 grated thermal systems in reducing demand for oil 

15 and protecting the environment; and 

16 (2) examine the feasibility of using total inte17 grated thermal systems in Department of Defense and 

18 other Federal motor vehicle fleets. 

19 SEC. 1610. UNIVERSITY COLLABORATION. 

20 Not later than 2 years after the date of enactment of 

21 this Act, the Secretary of Energy shall transmit to Congress 

22 a report that examines the feasibility of promoting collabo23 rations between large institutions of higher education and 

24 small institutions of higher education through grants, con25 tracts, and cooperative agreements made by the Secretary 
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1 for energy projects. The Secretary shall also consider pro2 viding incentives for the inclusion of small institutions of 

3 higher education, including minority-serving institutions, 

4 in energy research grants, contracts, and cooperative agree5 ments. 

6 SEC. 1611. RELIABILITY AND CONSUMER PROTECTION AS7 SESSMENT. 

8 Not later than 5 years after the date of enactment of 

9 this Act, and each 5 years thereafter, the Federal Energy 

10 Regulatory Commission shall assess the effects of the exemp11 tion of electric cooperatives and government-owned utilities 

12 from Commission regulation under section 201(f) of the 

13 Federal Power Act. The assessment shall include any effects 

14 on— 

15 (1) reliability of interstate electric transmission 

16 networks; 

17 (2) benefit to consumers, and efficiency, of com18 petitive wholesale electricity markets; 

19 (3) just and reasonable rates for electricity con20 sumers; and 

21 (4) the ability of the Commission to protect elec22 tricity consumers. 

23 If the Commission finds that the 201(f) exemption results 

24 in adverse effects on consumers or electric reliability, the 
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1 Commission shall make appropriate recommendations to 

2 Congress pursuant to section 311 of the Federal Power Act. 

3 SEC. 1612. REPORT ON ENERGY INTEGRATION WITH LATIN 

4 AMERICA. 

5 The Secretary of Energy shall submit an annual re6 port to the Committee on Energy and Commerce of the 

7 United States House of Representatives and to the Com8 mittee on Energy and Natural Resources of the United 

9 States Senate concerning the status of energy export devel10 opment in Latin America and efforts by the Secretary and 

11 other departments and agencies of the United States to pro12 mote energy integration with Latin America. The report 

13 shall contain a detailed analysis of the status of energy ex14 port development in Mexico and a description of all signifi15 cant efforts by the Secretary and other departments and 

16 agencies to promote a constructive relationship with Mexico 

17 regarding the development of that nation’s energy capacity. 

18 In particular this report shall outline efforts the Secretary 

19 and other departments and agencies have made to ensure 

20 that regulatory approval and oversight of United States/ 

21 Mexico border projects that result in the expansion of Mexi22 can energy capacity are effectively coordinated across de23 partments and with the Mexican government. 
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1 SEC. 1613. LOW-VOLUME GAS RESERVOIR STUDY. 

2 (a) STUDY.—The Secretary of Energy shall make a 

3 grant to an organization of oil and gas producing States, 

4 specifically those containing significant numbers of mar5 ginal oil and natural gas wells, for conducting an annual 

6 study of low-volume natural gas reservoirs. Such organiza7 tion shall work with the State geologist of each State being 

8 studied. 

9 (b) CONTENTS.—The studies under this section shall— 

10 (1) determine the status and location of mar11 ginal wells and gas reservoirs; 

12 (2) gather the production information of these 

13 marginal wells and reservoirs; 

14 (3) estimate the remaining producible reserves 

15 based on variable pipeline pressures; 

16 (4) locate low-pressure gathering facilities and 

17 pipelines; 

18 (5) recommend incentives which will enable the 

19 continued production of these resources; 

20 (6) produce maps and literature to disseminate 

21 to States to promote conservation of natural gas re22 serves; and 

23 (7) evaluate the amount of natural gas that is 

24 being wasted through the practice of venting or flar25 ing of natural gas produced in association with crude 

26 oil well production. 
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•HR 1640 RH 

1 (c) DATA ANALYSIS.—Data development and analysis 

2 under this section shall be performed by an institution of 

3 higher education with GIS capabilities. If the organization 

4 receiving the grant under subsection (a) does not have GIS 

5 capabilities, such organization shall contract with one or 

6 more entities with— 

7 (1) technological capabilities and resources to 

8 perform advanced image processing, GIS program9 ming, and data analysis; and 

10 (2) the ability to— 

11 (A) process remotely sensed imagery with 

12 high spatial resolution; 

13 (B) deploy global positioning systems; 

14 (C) process and synthesize existing, vari15 able-format gas well, pipeline, gathering facility, 

16 and reservoir data; 

17 (D) create and query GIS databases with 

18 infrastructure location and attribute informa19 tion; 

20 (E) write computer programs to customize 

21 relevant GIS software; 

22 (F) generate maps, charts, and graphs 

23 which summarize findings from data research for 

24 presentation to different audiences; and 
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•HR 1640 RH 

1 (G) deliver data in a variety of formats, in2 cluding Internet Map Server for query and dis3 play, desktop computer display, and access 

4 through handheld personal digital assistants. 

5 (d) AUTHORIZATION OF APPROPRIATIONS.—There are 

6 authorized to be appropriated to the Secretary of Energy 

7 for carrying out this section— 

8 (1) $1,500,000 for fiscal year 2006; and 

9 (2) $450,000 for each of the fiscal years 2007 

10 through 2010. 

11 (e) DEFINITIONS.—For purposes of this section, the 

12 term ‘‘GIS’’ means geographic information systems tech13 nology that facilitates the organization and management of 

14 data with a geographic component. 

Union Calendar No. 122 

109TH CONGRESS 

1ST SESSION H. R. 1640 

[Report No. 109–215, Part I] 

A BILL 

To ensure jobs for our future with secure and 

reliable energy. 

JULY 29, 2005 

Reported from the Committee on Energy and Commerce 

with an amendment 

JULY 29, 2005 

Committees on Science, Resources, Education and the 

Union and ordered to be printed the Committee of the Whole House on the State of the cial Services, and Agriculture discharged; committed to Workforce, Transportation and Infrastructure, Finan-