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Subtitle C—Next Generation 
Nuclear Plant Project 
SEC. 631. PROJECT ESTABLISHMENT. 
(a) ESTABLISHMENT.—The Secretary shall establish a 
project to be known as the ‘‘Next Generation Nuclear Plant 
Project’’ (referred to in this subtitle as the ‘‘Project’’). 
(b) CONTENT.—The Project shall consist of the re-
search, development, design, construction, and operation of 
a prototype plant, including a nuclear reactor that— 
(1) is based on research and development activi-
ties supported by the Generation IV Nuclear Energy 
Systems Initiative under section 942(d); and 
(2) shall be used— 
(A) to generate electricity; 
(B) to produce hydrogen; or 
(C) both to generate electricity and to 
produce hydrogen. 
SEC. 632. PROJECT MANAGEMENT. 
(a) DEPARTMENTAL MANAGEMENT.— 
(1) IN GENERAL.—The Project shall be managed 
in the Department by the Office of Nuclear Energy, 
Science, and Technology. 
(2) GENERATION IV NUCLEAR ENERGY SYSTEMS 
PROGRAM.—The Secretary may combine the Project
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with the Generation IV Nuclear Energy Systems Ini-
tiative. 
(3) EXISTING DOE PROJECT MANAGEMENT EX-
PERTISE.—The Secretary may utilize capabilities for 
review of construction projects for advanced scientific 
facilities within the Office of Science to track the 
progress of the Project. 
(b) LABORATORY MANAGEMENT.— 
(1) LEAD
LABORATORY.—The Idaho National 
Laboratory shall be the lead National Laboratory for 
the Project and shall collaborate with other National 
Laboratories, institutions of higher education, other 
research institutes, industrial researchers, and inter-
national researchers to carry out the Project. 
(2) INDUSTRIAL PARTNERSHIPS.— 
(A) IN
GENERAL.—The Idaho National 
Laboratory shall organize a consortium of ap-
propriate industrial partners that will carry out 
cost-shared research, development, design, and 
construction activities, and operate research fa-
cilities, on behalf of the Project. 
(B) COST-SHARING.—Activities of indus-
trial partners funded by the Project shall be cost- 
shared in accordance with section 1002.
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(C) PREFERENCE.—Preference in deter-
mining the final structure of the consortium or 
any partnerships under this subtitle shall be 
given to a structure (including designating as a 
lead industrial partner an entity incorporated 
in the United States) that retains United States 
technological leadership in the Project while 
maximizing cost sharing opportunities and 
minimizing Federal funding responsibilities. 
(3) PROTOTYPE PLANT SITING.—The prototype 
nuclear reactor and associated plant shall be sited at 
the Idaho National Laboratory in Idaho. 
(4) REACTOR TEST CAPABILITIES.—The Project 
shall use, if appropriate, reactor test capabilities at 
the Idaho National Laboratory. 
(5) OTHER
LABORATORY
CAPABILITIES.—The 
Project may use, if appropriate, facilities at other 
National Laboratories. 
SEC. 633. PROJECT ORGANIZATION. 
(a) MAJOR PROJECT ELEMENTS.—The Project shall 
consist of the following major program elements: 
(1) High-temperature hydrogen production tech-
nology development and validation. 
(2) Energy conversion technology development 
and validation.
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(3) Nuclear fuel development, characterization, 
and qualification. 
(4) Materials selection, development, testing, and 
qualification. 
(5) Reactor and balance-of-plant design, engi-
neering, safety analysis, and qualification. 
(b) PROJECT PHASES.—The Project shall be conducted 
in the following phases: 
(1) FIRST
PROJECT
PHASE.—A first project 
phase shall be conducted to— 
(A) select and validate the appropriate tech-
nology under subsection (a)(1); 
(B) carry out enabling research, develop-
ment, and demonstration activities on tech-
nologies and components under paragraphs (2) 
through (4) of subsection (a); 
(C) determine whether it is appropriate to 
combine electricity generation and hydrogen pro-
duction in a single prototype nuclear reactor 
and plant; and 
(D) carry out initial design activities for a 
prototype nuclear reactor and plant, including 
development of design methods and safety ana-
lytical methods and studies under subsection 
(a)(5).
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(2) SECOND PROJECT PHASE.—A second project 
phase shall be conducted to— 
(A) continue appropriate activities under 
paragraphs (1) though (5) of subsection (a); 
(B) develop, through a competitive process, 
a final design for the prototype nuclear reactor 
and plant; 
(C) apply for licenses to construct and oper-
ate the prototype nuclear reactor from the Nu-
clear Regulatory Commission; and 
(D) construct and start up operations of the 
prototype nuclear reactor and its associated hy-
drogen or electricity production facilities. 
(c) PROJECT REQUIREMENTS.— 
(1) IN
GENERAL.—The Secretary shall ensure 
that the Project is structured so as to maximize the 
technical interchange and transfer of technologies and 
ideas into the Project from other sources of relevant 
expertise, including— 
(A) the nuclear power industry, including 
nuclear powerplant construction firms, particu-
larly with respect to issues associated with plant 
design, construction, and operational and safety 
issues;
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(B) the chemical processing industry, par-
ticularly with respect to issues relating to— 
(i) the use of process energy for produc-
tion of hydrogen; and 
(ii) the integration of technologies de-
veloped by the Project into chemical proc-
essing environments; and 
(C) international efforts in areas related to 
the Project, particularly with respect to hydrogen 
production technologies. 
(2) INTERNATIONAL COLLABORATION.— 
(A) IN GENERAL.—The Secretary shall seek 
international cooperation, participation, and fi-
nancial contributions for the Project. 
(B) 
ASSISTANCE
FROM
INTERNATIONAL 
PARTNERS.—The Secretary, through the Idaho 
National Laboratory, may contract for assist-
ance from specialists or facilities from member 
countries of the Generation IV International 
Forum, the Russian Federation, or other inter-
national partners if the specialists or facilities 
provide access to cost-effective and relevant skills 
or test capabilities.
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(C) PARTNER NATIONS.—The Project may 
involve demonstration of selected project objec-
tives in a partner country. 
(D) 
GENERATION
IV
INTERNATIONAL 
FORUM.—The Secretary shall ensure that inter-
national activities of the Project are coordinated 
with the Generation IV International Forum. 
(3) REVIEW BY NUCLEAR ENERGY RESEARCH AD-
VISORY COMMITTEE.— 
(A) IN GENERAL.—The Nuclear Energy Re-
search Advisory Committee of the Department 
(referred to in this paragraph as the ‘‘NERAC’’) 
shall— 
(i) review all program plans for the 
Project and all progress under the Project 
on an ongoing basis; and 
(ii) ensure that important scientific, 
technical, safety, and program management 
issues receive attention in the Project and 
by the Secretary. 
(B) ADDITIONAL EXPERTISE.—The NERAC 
shall supplement the expertise of NERAC or ap-
point subpanels to incorporate into the review by 
NERAC the relevant sources of expertise de-
scribed under paragraph (1).
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(C) INITIAL REVIEW.—Not later than 180 
days after the date of enactment of this Act, the 
NERAC shall— 
(i) review existing program plans for 
the Project in light of the recommendations 
of the document entitled ‘‘Design Features 
and Technology Uncertainties for the Next 
Generation Nuclear Plant,’’ dated June 30, 
2004; and 
(ii) address any recommendations of 
the document not incorporated in program 
plans for the Project. 
(D) FIRST PROJECT PHASE REVIEW.—On a 
determination by the Secretary that the appro-
priate activities under the first project phase 
under subsection (b)(1) are nearly complete, the 
Secretary shall request the NERAC to conduct a 
comprehensive review of the Project and to report 
to the Secretary the recommendation of NERAC 
concerning whether the Project is ready to pro-
ceed to the second project phase under subsection 
(b)(2). 
(E) TRANSMITTAL
OF
REPORTS
TO
CON-
GRESS.—Not later than 60 days after receiving 
any report from the NERAC related to the
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Project, the Secretary shall submit to the appro-
priate committees of the Senate and the House of 
Representatives a copy of the report, along with 
any additional views of the Secretary that the 
Secretary may consider appropriate. 
SEC. 634. NUCLEAR REGULATORY COMMISSION. 
(a) IN GENERAL.—In accordance with section 202 of 
the Energy Reorganization Act of 1974 (42 U.S.C. 5842), 
the Nuclear Regulatory Commission shall have licensing 
and regulatory authority for any reactor authorized under 
this subtitle. 
(b) LICENSING STRATEGY.—Not later than 3 years 
after the date of enactment of this Act, the Secretary and 
the Chairman of the Nuclear Regulatory Commission shall 
jointly submit to the appropriate committees of the Senate 
and the House of Representatives a licensing strategy for 
the prototype nuclear reactor, including— 
(1) a description of ways in which current li-
censing requirements relating to light-water reactors 
need to be adapted for the types of prototype nuclear 
reactor being considered by the Project; 
(2) a description of analytical tools that the Nu-
clear Regulatory Commission will have to develop to 
independently verify designs and performance charac-
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teristics of components, equipment, systems, or struc-
tures associated with the prototype nuclear reactor; 
(3) other research or development activities that 
may be required on the part of the Nuclear Regu-
latory Commission in order to review a license appli-
cation for the prototype nuclear reactor; and 
(4) an estimate of the budgetary requirements as-
sociated with the licensing strategy. 
(c) ONGOING INTERACTION.—The Secretary shall seek 
the active participation of the Nuclear Regulatory Commis-
sion throughout the duration of the Project to— 
(1) avoid design decisions that will compromise 
adequate safety margins in the design of the reactor 
or impair the accessibility of nuclear safety-related 
components of the prototype reactor for inspection 
and maintenance; 
(2) develop tools to facilitate inspection and 
maintenance needed for safety purposes; and 
(3) develop risk-based criteria for any future 
commercial development of a similar reactor architec-
tures. 
SEC. 635. PROJECT TIMELINES AND AUTHORIZATION OF 
APPROPRIATIONS. 
(a) TARGET DATE TO COMPLETE THE FIRST PROJECT 
PHASE.—Not later than September 30, 2011—
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(1) the Secretary shall select the technology to be 
used by the Project for high-temperature hydrogen 
production and the initial design parameters for the 
prototype nuclear plant; or 
(2) submit to Congress a report establishing an 
alternative date for making the selection. 
(b) DESIGN COMPETITION
FOR SECOND PROJECT 
PHASE.— 
(1) IN GENERAL.—The Secretary, acting through 
the Idaho National Laboratory, shall fund not more 
than 4 teams for not more than 2 years to develop de-
tailed proposals for competitive evaluation and selec-
tion of a single proposal for a final design of the pro-
totype nuclear reactor. 
(2) SYSTEMS INTEGRATION.—The Secretary may 
structure Project activities in the second project phase 
to use the lead industrial partner of the competitively 
selected design under paragraph (1) in a systems in-
tegration role for final design and construction of the 
Project. 
(c) TARGET DATE TO COMPLETE PROJECT CONSTRUC-
TION.—Not later than September 30, 2021— 
(1) the Secretary shall complete construction and 
begin operations of the prototype nuclear reactor and 
associated energy or hydrogen facilities; or
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(2) submit to Congress a report establishing an 
alternative date for completion. 
(d) AUTHORIZATION OF APPROPRIATIONS.—There is 
authorized to be appropriated to the Secretary for research 
and construction activities under this subtitle (including for 
transfer to the Nuclear Regulatory Commission for activi-
ties under section 634 as appropriate)— 
(1) $1,250,000,000 for the period of fiscal years 
2006 through 2015; and 
(2) such sums as are necessary for each of fiscal 
years 2016 through 2021. 
TITLE VII—VEHICLES AND 
FUELS 
Subtitle A—Existing Programs 
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED 
VEHICLES. 
Section 400AA(a)(3) of the Energy Policy and Con-
servation Act (42 U.S.C. 6374(a)(3)) is amended by strik-
ing subparagraph (E) and inserting the following: 
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this 
section shall be operated on alternative fuels unless the Sec-
retary determines that an agency qualifies for a waiver of 
the requirements of this section for vehicles operated by the 
agency in a particular geographic area in which—
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‘‘(I) the alternative fuel otherwise required to be 
used in the vehicle is not reasonably available to re-
tail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or 
‘‘(II) the cost of the alternative fuel otherwise re-
quired to be used in the vehicle is unreasonably more 
expensive compared to gasoline, as certified to the 
Secretary by the head of the agency. 
‘‘(ii) The Secretary shall monitor compliance with this 
subparagraph by all fleets receiving a waiver. 
‘‘(iii) The Secretary shall report annually to Congress 
on the extent to which the requirements of this subpara-
graph are being achieved, including information on annual 
reductions achieved from the use of petroleum-based fuels 
and the problems, if any, encountered in acquiring alter-
native fuels.’’. 
SEC. 702. FUEL USE CREDITS. 
(a) IN GENERAL.—Section 312 of the Energy Policy 
Act of 1992 (42 U.S.C. 13220) is amended to read as fol-
lows: 
‘‘SEC. 312. FUEL USE CREDITS. 
‘‘(a) DEFINITIONS.—In this section: 
‘‘(1) BIODIESEL.—The term ‘biodiesel’ means a 
diesel fuel substitute produced from nonpetroleum re-
newable resources that meets the registration require-
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ments for fuels and fuel additives established by the 
Environmental Protection Agency under section 211 
of the Clean Air Act (42 U.S.C. 7545). 
‘‘(2) QUALIFYING
VOLUME.—The term ‘quali-
fying volume’ means— 
‘‘(A) in the case of biodiesel, when used as 
a component of fuel containing at least 20 per-
cent biodiesel by volume— 
‘‘(i) 450 gallons; or 
‘‘(ii) if the Secretary determines by 
rule that the average annual alternative fuel 
use in light duty vehicles by fleets and cov-
ered persons exceeds 450 gallons or gallon 
equivalents, the amount of the average an-
nual alternative fuel use; and 
‘‘(B) in the case of an alternative fuel, the 
amount of the fuel determined by the Secretary 
to have an equivalent energy content to the 
amount of biodiesel defined as a qualifying vol-
ume under subparagraph (A). 
‘‘(b) ALLOCATION.— 
‘‘(1) IN GENERAL.—The Secretary shall allocate 
1 credit under this section to a fleet or covered person 
for each qualifying volume of alternative fuel or bio-
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diesel purchased for use in a vehicle operated by the 
fleet. 
‘‘(2) LIMITATION.—The Secretary may not allo-
cate a credit under this section for the purchase of an 
alternative fuel or biodiesel that is required by Fed-
eral or State law. 
‘‘(3) DOCUMENTATION.—A fleet or covered person 
seeking a credit under paragraph (1) shall provide 
written documentation to the Secretary supporting 
the allocation of the credit to the fleet or covered per-
son. 
‘‘(c) USE.—At the request of a fleet or covered person 
allocated a credit under subsection (b), the Secretary shall, 
for the year in which the purchase of a qualifying volume 
is made, consider the purchase to be the acquisition of 1 
alternative fueled vehicle that the fleet or covered person is 
required to acquire under this title, title IV, or title V. 
‘‘(d) TREATMENT.—A credit provided to a fleet or cov-
ered person under this section shall be considered to be a 
credit under section 508. 
‘‘(e) ISSUANCE OF RULE.—Not later than 180 days 
after the date of enactment of the Energy Policy Act of 
2005, the Secretary shall issue a rule establishing proce-
dures for the implementation of this section.’’.
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(b) TABLE OF CONTENTS AMENDMENT.—The table of 
contents of the Energy Policy Act of 1992 is amended by 
striking the item relating to section 312 and inserting the 
following: 
‘‘Sec. 312. Fuel use credits.’’. 
SEC. 703. INCREMENTAL COST ALLOCATION. 
Section 303(c) of the Energy Policy Act of 1992 (42 
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and insert-
ing ‘‘shall’’. 
SEC. 704. ALTERNATIVE COMPLIANCE AND FLEXIBILITY. 
(a) ALTERNATIVE COMPLIANCE.—Title V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13251 et seq.) is amend-
ed— 
(1) by redesignating section 514 (42 U.S.C. 
13264) as section 515; and 
(2) by inserting after section 513 (42 U.S.C. 
13263) the following: 
‘‘SEC. 514. ALTERNATIVE COMPLIANCE. 
‘‘(a) APPLICATION FOR WAIVER.—Any covered person 
subject to section 501 and any State subject to section 
507(o) may petition the Secretary for a waiver of the appli-
cable requirements of section 501 or 507(o). 
‘‘(b) GRANT OF WAIVER.—The Secretary shall grant 
a waiver of the requirements of section 501 or 507(o) on 
a showing that the fleet owned, operated, leased, or other-
wise controlled by the State or covered person—
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‘‘(1) will achieve a reduction in the annual con-
sumption of petroleum fuels by the fleet equal to— 
‘‘(A) the reduction in consumption of petro-
leum that would result from 100 percent cumu-
lative compliance with the fuel use requirements 
of section 501; or 
‘‘(B) in the case of an entity covered under 
section 507(o), a reduction equal to the annual 
consumption by the State entity of alternative 
fuels if all of the cumulative alternative fuel ve-
hicles of the State entity given credit under sec-
tion 508 were to use alternative fuel 100 percent 
of the time; and 
‘‘(2) is in compliance with all applicable vehicle 
emission standards established by the Administrator 
of the Environmental Protection Agency under the 
Clean Air Act (42 U.S.C. 7401 et seq.). 
‘‘(c) REVOCATION OF WAIVER.—The Secretary shall 
revoke any waiver granted under this section if the State 
or covered person fails to comply with subsection (b).’’. 
(b) CREDITS.—Section 508(a) of the Energy Policy 
Act of 1992 (42 U.S.C. 13258(a)) is amended— 
(1) by striking ‘‘The Secretary’’ and inserting 
the following: 
‘‘(1) The Secretary’’; and
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(2) by adding at the end the following: 
‘‘(2) Not later than January 31, 2007, the Sec-
retary shall— 
‘‘(A) allocate credit in an amount to be de-
termined by the Secretary for— 
‘‘(i) acquisition of— 
‘‘(I) a light-duty hybrid electric 
vehicle; 
‘‘(II) a plug-in hybrid electric ve-
hicle; 
‘‘(III) a fuel cell electric vehicle; 
‘‘(IV) a medium- or heavy-duty 
hybrid electric vehicle; 
‘‘(V) a neighborhood electric vehi-
cle; or 
‘‘(VI) a medium- or heavy-duty 
dedicated vehicle; and 
‘‘(ii) investment in qualified alter-
native fuel infrastructure or nonroad equip-
ment, as determined by the Secretary; and 
‘‘(B) allocate more than 1, but not to exceed 
5, credits for investment in an emerging tech-
nology relating to any vehicle described in sub-
paragraph (A) to encourage— 
‘‘(i) a reduction in petroleum demand;
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‘‘(ii) technological advancement; and 
‘‘(iii) environmental safety.’’. 
(c) TABLE OF CONTENTS AMENDMENT.—The table of 
contents of the Energy Policy Act of 1992 (42 U.S.C. prec. 
13201) is amended by striking the item relating to section 
514 and inserting the following: 
‘‘Sec. 514. Alternative compliance. 
‘‘Sec. 515. Authorization of appropriations. 
‘‘Sec. 516. Termination of authority.’’. 
SEC. 705. REPORT CONCERNING COMPLIANCE WITH ALTER-
NATIVE FUELED VEHICLE PURCHASING RE-
QUIREMENTS. 
Section 310(b)(1) of the Energy Policy Act of 1992 (42 
U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year after 
the date of enactment of this subsection’’ and inserting 
‘‘February 15, 2006’’. 
SEC. 706. JOINT FLEXIBLE FUEL/HYBRID VEHICLE COMMER-
CIALIZATION INITIATIVE. 
(a) DEFINITIONS.—In this section: 
(1) ELIGIBLE ENTITY.—The term eligible entity 
means— 
(A) a for-profit corporation; 
(B) a nonprofit corporation; or 
(C) an institution of higher education. 
(2) PROGRAM.—The term ‘‘program’’ means the 
applied research program established under subsection 
(b).
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(b) ESTABLISHMENT.—The Secretary shall establish 
an applied research program to improve technologies for the 
commercialization of— 
(1) a combination hybrid/flexible fuel vehicle; or 
(2) a plug-in hybrid/flexible fuel vehicle. 
(c) GRANTS.—In carrying out the program, the Sec-
retary shall provide grants that give preference to proposals 
that— 
(1) achieve the greatest reduction in miles per 
gallon of petroleum fuel consumption; 
(2) achieve not less than 250 miles per gallon of 
petroleum fuel consumption; and 
(3) have the greatest potential of commercializa-
tion to the general public within 5 years. 
(d) VERIFICATION.—Not later than 90 days after the 
date of enactment of this Act, the Secretary shall publish 
in the Federal Register procedures to verify— 
(1) the hybrid/flexible fuel vehicle technologies to 
be demonstrated; and 
(2) that grants are administered in accordance 
with this section. 
(e) REPORT.—Not later than 260 days after the date 
of enactment of this Act, and annually thereafter, the Sec-
retary shall submit to Congress a report that— 
(1) identifies the grant recipients;