732
(3) CONFORMING AMENDMENTS.—
(A) Section 30(b)(2)(A), as redesignated
by section 110(a), is amended by striking ‘‘sec-
tions 27 and 29’’ and inserting ‘‘section 27’’.
(B) Section 30B(d), as added by section
41011, is amended by striking ‘‘, 29,’’.
(C) Section 39(d) is amended by adding at
the end the following new paragraph:
‘‘(13) NO CARRYBACK FOR NONCONVENTIONAL
SOURCE PRODUCTION CREDIT.—No portion of the
unused business credit for any taxable year which is
attributable to the credit under section 45J may be
carried back to a taxable year ending before April 1,
2003.’’.
(D) Sections 43(b)(2), 45I(b)(2)(C) (as
added by section 43001), and 613A(c)(6)(C)
are 
each 
amended 
by 
striking 
‘‘section
29(d)(2)(C)’’ 
and 
inserting 
‘‘section
45J(d)(2)(C)’’.
(E) Paragraph (9) of section 45(c), as
added by section 41002(c), is amended by strik-
ing ‘‘section 29’’ and inserting ‘‘section 45J’’
and by striking ‘‘SECTION 29’’ in the heading of
such paragraph and inserting ‘‘SECTION 45J’’.
733
(F) Section 45I(d)(3), as added by section
43001, is amended by striking ‘‘section 29’’
each place it appears and inserting ‘‘section
45J’’.
(G) Section 45J(a), as amended by section
43001(d) and redesignated by paragraph (1), is
amended by striking ‘‘At the election of the tax-
payer, there shall be allowed as a credit against
the tax imposed by this chapter for the taxable
year’’ and inserting ‘‘For purposes of section
38, if the taxpayer elects to have this section
apply, the nonconventional source production
credit determined under this section for the tax-
able year is’’.
(H) Section 45J(b), as so redesignated, is
amended by striking paragraph (6).
(I) Section 53(d)(1)(B)(iii) is amended by
striking ‘‘under section 29’’ and all that follows
through ‘‘or not allowed’’.
(J) Section 55(c)(2) is amended by strik-
ing ‘‘29(b)(6),’’.
(K) Subsection (a) of section 772 is
amended by inserting ‘‘and’’ at the end of para-
graph (9), by striking paragraph (10), and by
734
redesignating paragraph (11) as paragraph
(10).
(L) Paragraph (5) of section 772(d) is
amended by striking ‘‘the foreign tax credit,
and the credit allowable under section 29’’ and
inserting ‘‘and the foreign tax credit’’.
(M) The table of sections for subpart B of
part IV of subchapter A of chapter 1 is amend-
ed by striking the item relating to section 29.
(N) The table of sections for subpart D of
part IV of subchapter A of chapter 1 is amend-
ed by inserting after the item relating to section
45I the following new item:
‘‘Sec. 45J. Credit for producing fuel from a nonconventional
source.’’.
(c) EFFECTIVE DATES.—
(1) IN
GENERAL.—The amendment made by
subsection (a) shall apply to fuel sold after March
31, 2003, in taxable years ending after such date.
(2) TREATMENT
AS
BUSINESS
CREDIT.—The
amendments made by subsection (b) shall apply to
taxable years ending after March 31, 2003.
735
SEC. 43006. BUSINESS RELATED ENERGY CREDITS AL-
LOWED AGAINST REGULAR AND MINIMUM
TAX.
(a) IN GENERAL.—Subsection (c) of section 38 (re-
lating to limitation based on amount of tax) is amended
by redesignating paragraph (4) as paragraph (5) and by
inserting after paragraph (3) the following new paragraph:
‘‘(4) SPECIAL RULES FOR SPECIFIED ENERGY
CREDITS.—
‘‘(A) IN GENERAL.—In the case of speci-
fied energy credits—
‘‘(i) this section and section 39 shall
be applied separately with respect to such
credits, and
‘‘(ii) in applying paragraph (1) to
such credits—
‘‘(I) the tentative minimum tax
shall be treated as being zero, and
‘‘(II) the limitation under para-
graph (1) (as modified by subclause
(I)) shall be reduced by the credit al-
lowed under subsection (a) for the
taxable year (other than the specified
energy credits).
‘‘(B) SPECIFIED
ENERGY
CREDITS.—For
purposes of this subsection, the term ‘specified
736
energy credits’ means the credits determined
under sections 45G, 45H, and 45I.
‘‘(C) SPECIAL RULE FOR QUALIFIED WIND
FACILITIES.—For purposes of this subsection,
the term ‘specified energy credits’ shall include
the credit determined under section 45 to the
extent that such credit is attributable to elec-
tricity produced—
‘‘(i) at a facility using wind to
produce electricity which is originally
placed in service after the date of the en-
actment of this paragraph, and
‘‘(ii) during the 4-year period begin-
ning on the date that such facility was
originally placed in service.’’.
(b) 
CONFORMING
AMENDMENTS.—Paragraphs
(2)(A)(ii)(II) and (3)(A)(ii)(II) of section 38(c) are each
amended by inserting ‘‘or the specified energy credits’’
after ‘‘employee credit’’.
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after the
date of the enactment of this Act.
737
SEC. 43007. TEMPORARY REPEAL OF ALTERNATIVE MIN-
IMUM TAX PREFERENCE FOR INTANGIBLE
DRILLING COSTS.
(a) IN GENERAL.—Clause (ii) of section 57(a)(2)(E)
is amended by adding at the end the following new sen-
tence: ‘‘The preceding sentence shall not apply to taxable
years beginning after December 31, 2003, and before Jan-
uary 1, 2006.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2003.
SEC. 43008. ALLOWANCE OF ENHANCED RECOVERY CREDIT
AGAINST THE ALTERNATIVE MINIMUM TAX.
(a) IN GENERAL.—Subparagraph (B) of section
38(c)(4), as amended by section 43006, is amended by
adding at the end the following new sentence: ‘‘For taxable
years beginning after December 31, 2003, and before Jan-
uary 1, 2006, such term includes the credit determined
under section 43.’’.
(b) EFFECTIVE DATE.—The amendment made by
this section shall apply to taxable years beginning after
December 31, 2003.
738
TITLE IV—CORPORATE
EXPATRIATION
SEC. 44001. TAX TREATMENT OF CORPORATE EXPATRIA-
TION.
(a) IN GENERAL.—Subchapter C of chapter 80 (re-
lating to provisions affecting more than one subtitle) is
amended by adding at the end the following new section:
‘‘SEC. 7874. TAX TREATMENT OF CORPORATE EXPATRIA-
TION.
‘‘(a) INVERTED CORPORATIONS TREATED AS DOMES-
TIC CORPORATIONS.—
‘‘(1) IN GENERAL.—If a foreign incorporated
entity is treated as an inverted domestic corporation,
then, notwithstanding section 7701(a)(4), such enti-
ty shall be treated for purposes of this title as a do-
mestic corporation.
‘‘(2) INVERTED DOMESTIC CORPORATION.—For
purposes of this section, a foreign incorporated enti-
ty shall be treated as an inverted domestic corpora-
tion if, pursuant to a plan (or a series of related
transactions)—
‘‘(A) the entity completes after March 4,
2003, the direct or indirect acquisition of sub-
stantially all of the properties held directly or
indirectly by a domestic corporation or substan-
739
tially all of the properties constituting a trade
or business of a domestic partnership,
‘‘(B) after the acquisition at least 80 per-
cent of the stock (by vote or value) of the entity
is held—
‘‘(i) in the case of an acquisition with
respect to a domestic corporation, by
former shareholders of the domestic cor-
poration by reason of holding stock in the
domestic corporation, or
‘‘(ii) in the case of an acquisition with
respect to a domestic partnership, by
former partners of the domestic partner-
ship by reason of holding a capital or prof-
its interest in the domestic partnership,
and
‘‘(C) the expanded affiliated group which
after the acquisition includes the entity does
not have substantial business activities in the
foreign country in which or under the law of
which the entity is created or organized when
compared to the total business activities of such
expanded affiliated group.
740
‘‘(3) TERMINATION.—This subsection shall not
apply to any acquisition completed after December
31, 2004.
‘‘(b) DEFINITIONS AND SPECIAL RULES.—For pur-
poses of this section—
‘‘(1) FOREIGN
INCORPORATED
ENTITY.—The
term ‘foreign incorporated entity’ means any entity
which is, or but for subsection (a) would be, treated
as a foreign corporation for purposes of this title.
‘‘(2) EXPANDED
AFFILIATED
GROUP.—The
term ‘expanded affiliated group’ means an affiliated
group as defined in section 1504(a) but without re-
gard to paragraphs (2), (3), and (4) of section
1504(b), except that section 1504(a) shall be applied
by substituting ‘more than 50 percent’ for ‘at least
80 percent’ each place it appears.
‘‘(3) CERTAIN
STOCK
DISREGARDED.—There
shall not be taken into account in determining own-
ership under subsection (a)(3)(B)—
‘‘(A) stock held by members of the ex-
panded affiliated group which includes the for-
eign incorporated entity, or
‘‘(B) stock of such foreign incorporated en-
tity which is sold in a public offering related to
741
the 
acquisition 
described 
in 
subsection
(a)(3)(A).
‘‘(4) PLAN DEEMED IN CERTAIN CASES.—If a
foreign incorporated entity acquires directly or indi-
rectly substantially all of the properties of a domes-
tic corporation or partnership during the 4-year pe-
riod beginning on the date which is 2 years before
the ownership requirements of subsection (a)(3)(B)
are met, such actions shall be treated as pursuant
to a plan.
‘‘(5) CERTAIN TRANSFERS DISREGARDED.—The
transfer of properties or liabilities (including by con-
tribution or distribution) shall be disregarded if such
transfers are part of a plan a principal purpose of
which is to avoid the purposes of this section.
‘‘(6) SPECIAL RULE FOR RELATED PARTNER-
SHIPS.—For 
purposes 
of 
applying 
subsection
(a)(3)(B) to the acquisition of a domestic partner-
ship, except as provided in regulations, all partner-
ships which are under common control (within the
meaning of section 482) shall be treated as 1 part-
nership.
‘‘(7) REGULATIONS.—The Secretary shall pre-
scribe such regulations as may be appropriate to de-
742
termine whether a corporation is an inverted domes-
tic corporation, including regulations—
‘‘(A) to treat warrants, options, contracts
to acquire stock, convertible debt interests, and
other similar interests as stock, and
‘‘(B) to treat stock as not stock.
‘‘(c) SPECIAL RULE FOR TREATIES.—Nothing in sec-
tion 894 or 7852(d) or in any other provision of law shall
be construed as permitting an exemption, by reason of any
treaty obligation of the United States heretofore or here-
after entered into, from the provisions of this section.
‘‘(d) REGULATIONS.—The Secretary shall provide
such regulations as are necessary to carry out this section,
including regulations providing for such adjustments to
the application of this section as are necessary to prevent
the avoidance of the purposes of this section, including the
avoidance of such purposes through—
‘‘(1) the use of related persons, pass-through or
other noncorporate entities, or other intermediaries,
or
‘‘(2) transactions designed to have persons
cease to be (or not become) members of expanded
affiliated groups or related persons.’’.
743
(b) CONFORMING AMENDMENT.—The table of sec-
tions for subchapter C of chapter 80 is amended by adding
at the end the following new item:
‘‘Sec. 7874. Tax treatment of corporate expatriation.’’
(c) EFFECTIVE DATE.—The amendments made by
this section shall apply to taxable years ending after
March 4, 2003.
SEC. 44002. EXPRESSING THE SENSE OF THE CONGRESS
THAT TAX REFORM IS NEEDED TO ADDRESS
THE ISSUE OF CORPORATE EXPATRIATION.
(a) FINDINGS.—The Congress finds that—
(1) the tax laws of the United States are overly
complex;
(2) the tax laws of the United States are among
the most burdensome and uncompetitive in the
world;
(3) the tax laws of the United States make it
difficult for domestically-owned United States com-
panies to compete abroad and in the United States;
(4) a domestically-owned corporation is dis-
advantaged compared to a United States subsidiary
of a foreign-owned corporation; and
(5) international competitiveness is forcing
many United States corporations to make a choice
they do not want to make–go out of business, sell
the business to a foreign competitor, or become a
744
subsidiary of a foreign corporation (i.e., engage in
an inversion transaction).
(b) SENSE OF CONGRESS.—It is the sense of Con-
gress that passage of legislation to fix the underlying prob-
lems with our tax laws is essential and should occur as
soon as possible, so United States corporations will not
face the current pressures to engage in inversion trans-
actions.
DIVISION E—CLEAN COAL
SEC. 50001. AUTHORIZATION OF APPROPRIATIONS.
(a) CLEAN COAL POWER INITIATIVE.—Except as
provided in subsection (b), there are authorized to be ap-
propriated to the Secretary to carry out the activities au-
thorized by this division $200,000,000 for each of the fis-
cal years 2004 through 2012, to remain available until ex-
pended.
(b) LIMIT ON USE OF FUNDS.—The Secretary shall
transmit to the Committee on Energy and Commerce and
the Committee on Science of the House of Representa-
tives, and to the Senate, the report required by this sub-
section not later than March 31, 2005. Notwithstanding
subsection (a), no funds may be used to carry out the ac-
tivities authorized by this division after September 30,
2005, unless the report has been transmitted and one
month has elapsed since that transmission. The report
745
shall include, with respect to subsection (a), a 10-year
plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are
the appropriate funding levels for that program;
(2) a detailed description of how proposals will
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken;
(3) a detailed list of technical milestones for
each coal and related technology that will be pur-
sued; and
(4) a detailed description of how the program
will avoid problems enumerated in General Account-
ing Office reports on the Clean Coal Technology
Program, including problems that have resulted in
unspent funds and projects that failed either finan-
cially or scientifically.
(c) APPLICABILITY.—Subsection (b) shall not apply
to any project begun before September 30, 2005.
SEC. 50002. PROJECT CRITERIA.
(a) IN GENERAL.—The Secretary shall not provide
funding under this division for any project that does not
advance efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in commercial service or have been demonstrated on
746
a scale that the Secretary determines is sufficient to dem-
onstrate that commercial service is viable as of the date
of the enactment of this Act.
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER
INITIATIVE.—
(1) GASIFICATION.—(A) In allocating the funds
made available under section 50001(a), the Sec-
retary shall ensure that at least 60 percent of the
funds are used only for projects on coal-based gasifi-
cation technologies, including gasification combined
cycle, gasification fuel cells, gasification coproduc-
tion, and hybrid gasification/combustion.
(B) The Secretary shall periodically set tech-
nical milestones specifying the emission and thermal
efficiency levels that coal gasification projects must
be designed to and reasonably expected to achieve.
The technical milestones shall get more restrictive
during the life of the program. The Secretary shall
set the periodic milestones so as to achieve by 2020
coal gasification projects able—
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit no more than .05 lbs of NOx
per million BTU;
(iii) to achieve substantial reductions in
mercury emissions; and
747
(iv) to achieve a thermal efficiency of—
(I) 60 percent for coal of more than
9,000 Btu;
(II) 59 percent for coal of 7,000 to
9,000 Btu; and
(III) 50 percent for coal of less than
7,000 Btu.
(2) OTHER PROJECTS.—The Secretary shall pe-
riodically set technical milestones for projects not
described in paragraph (1). The milestones shall
specify the emission and thermal efficiency levels
that projects funded under this paragraph must be
designed to and reasonably expected to achieve. The
technical milestones shall get more restrictive during
the life of the program. The Secretary shall set the
periodic milestones so as to achieve by 2010 projects
able—
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx
per million BTU;
(C) to achieve substantial reductions in
mercury emissions; and
(D) to achieve a thermal efficiency of—
(i) 45 percent for coal of more than
9,000 Btu;
748
(ii) 44 percent for coal of 7,000 to
9,000 Btu; and
(iii) 40 percent for coal of less than
7,000 Btu.
(3) CONSULTATION.—Before setting the tech-
nical milestones under paragraphs (1)(B) and (2),
the Secretary shall consult with the Administrator of
the Environmental Protection Agency and interested
entities, including coal producers, industries using
coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and orga-
nizations representing workers.
(4) EXISTING UNITS.—In the case of projects
at existing units, in lieu of the thermal efficiency re-
quirements set forth in paragraph (1)(B)(iv) and
(2)(D), the milestones shall be designed to achieve
an overall thermal design efficiency improvement
compared to the efficiency of the unit as operated,
of not less than—
(A) 7 percent for coal of more than 9,000
Btu;
(B) 6 percent for coal of 7,000 to 9,000
Btu; or
(C) 4 percent for coal of less than 7,000
Btu.
749
(5) PERMITTED
USES.—In allocating funds
made available under section 50001, the Secretary
may fund projects that include, as part of the
project, the separation and capture of carbon diox-
ide.
(c) FINANCIAL CRITERIA.—The Secretary shall not
provide a funding award under this division unless the re-
cipient has documented to the satisfaction of the Secretary
that—
(1) the award recipient is financially viable
without the receipt of additional Federal funding;
(2) the recipient will provide sufficient informa-
tion to the Secretary for the Secretary to ensure
that the award funds are spent efficiently and effec-
tively; and
(3) a market exists for the technology being
demonstrated or applied, as evidenced by statements
of interest in writing from potential purchasers of
the technology.
(d) FINANCIAL ASSISTANCE.—The Secretary shall
provide financial assistance to projects that meet the re-
quirements of subsections (a), (b), and (c) and are likely
to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy;
750
(2) improve the competitiveness of coal among
various forms of energy in order to maintain a diver-
sity of fuel choices in the United States to meet elec-
tricity generation requirements; and
(3) demonstrate methods and equipment that
are applicable to 25 percent of the electricity gener-
ating facilities, using different types of coal, that use
coal as the primary feedstock as of the date of the
enactment of this Act.
(e) FEDERAL SHARE.—The Federal share of the cost
of a coal or related technology project funded by the Sec-
retary under this division shall not exceed 50 percent.
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately dem-
onstrated for purposes of section 111 of the Clean Air Act,
achievable for purposes of section 169 of that Act, or
achievable in practice for purposes of section 171 of that
Act solely by reason of the use of such technology, or the
achievement of such emission reduction, by one or more
facilities receiving assistance under this division.
SEC. 50003. REPORT.
Not later than 1 year after the date of the enactment
of this Act, and once every 2 years thereafter through
2011, the Secretary, in consultation with other appro-
priate Federal agencies, shall transmit to the Committee
751
on Energy and Commerce and the Committee on Science
of the House of Representatives, and to the Senate, a re-
port describing—
(1) the technical milestones set forth in section
50002 and how those milestones ensure progress to-
ward meeting the requirements of subsections
(b)(1)(B) and (b)(2) of section 50002; and
(2) the status of projects funded under this di-
vision.
SEC. 50004. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 50001,
the Secretary shall award competitive, merit-based grants
to universities for the establishment of Centers of Excel-
lence for Energy Systems of the Future. The Secretary
shall provide grants to universities that can show the
greatest potential for advancing new clean coal tech-
nologies.
DIVISION F—HYDROGEN
SEC. 60001. DEFINITIONS.
In this division:
(1) The term ‘‘Advisory Committee’’ means the
Hydrogen Technical and Fuel Cell Advisory Com-
mittee established under section 60005 of this Act.
(2) The term ‘‘Department’’ means the Depart-
ment of Energy.
752
(3) The term ‘‘fuel cell’’ means a device that di-
rectly converts the chemical energy of a fuel and an
oxidant into electricity by an electrochemical process
taking place at separate electrodes in the device.
(4) The term ‘‘infrastructure’’ means the equip-
ment, systems, or facilities used to produce, dis-
tribute, deliver, or store hydrogen and other ad-
vanced clean fuels.
(5) The term ‘‘light duty vehicle’’ means a car
or truck, classified by the Department of Transpor-
tation as a Class I or IIA vehicle.
(6) The term ‘‘Secretary’’ means the Secretary
of Energy.
SEC. 60002. PLAN.
Not later than six months after the date of enactment
of this Act, the Secretary shall transmit to the Congress
a coordinated plan for the programs described in this divi-
sion and any other programs of the Department that are
directly related to fuel cells or hydrogen. The plan shall
describe, at a minimum—
(1) the agenda for the next five years for the
programs authorized under this division, including
the agenda for each activity enumerated in section
60003(a);
753
(2) the types of entities that will carry out the
activities under this division and what role each enti-
ty is expected to play;
(3) the milestones that will be used to evaluate
the programs for the next five years;
(4) the most significant technical and nontech-
nical hurdles that stand in the way of achieving the
goals described in section 60003(b), and how the
programs will address those hurdles; and
(5) the policy assumptions that are implicit in
the plan, including any assumptions that would af-
fect the sources of hydrogen or the marketability of
hydrogen-related products.
SEC. 60003. PROGRAM.
(a) ACTIVITIES.—The Secretary, in partnership with
the private sector, shall conduct a program to address—
(1) production of hydrogen from diverse energy
sources, including—
(A) fossil fuels, which may include carbon
capture and sequestration;
(B) hydrogen-carrier fuels (including eth-
anol and methanol);
(C) renewable energy resources; and
(D) nuclear energy;
754
(2) the safe delivery of hydrogen or hydrogen-
carrier fuels, including—
(A) transmission by pipeline and other dis-
tribution methods; and
(B) convenient and economic refueling of
vehicles either at central refueling stations or
through distributed on-site generation;
(3) advanced vehicle technologies, including—
(A) engine and emission control systems;
(B) energy storage, electric propulsion, and
hybrid systems;
(C) automotive materials;
(D) clean fuels in addition to hydrogen;
and
(E) other advanced vehicle technologies;
(4) storage of hydrogen or hydrogen-carrier
fuels, including development of materials for safe
and economic storage in gaseous, liquid, or solid
form at refueling facilities and onboard vehicles;
(5) development of safe, durable, affordable,
and efficient fuel cells, including research and devel-
opment on fuel-flexible fuel cell power systems, im-
proved manufacturing processes, high-temperature
membranes, cost-effective fuel processing for natural
755
gas, fuel cell stack and system reliability, low tem-
perature operation, and cold start capability; and
(6) development of necessary codes and stand-
ards (including international codes and standards)
and safety practices for the production, distribution,
storage, and use of hydrogen, hydrogen-carrier fuels
and related products.
(b) PROGRAM GOALS.—
(1) VEHICLES.—For vehicles, the goals of the
program are—
(A) to enable a commitment by auto-
makers no later than year 2015 to offer safe,
affordable, and technically viable hydrogen fuel
cell vehicles in the mass consumer market; and
(B) to enable production, delivery, and ac-
ceptance by consumers of model year 2020 hy-
drogen fuel cell and other vehicles that will
have—
(i) a range of at least three hundred
miles;
(ii) improved performance and ease of
driving;
(iii) safety and performance com-
parable to vehicle technologies in the mar-
ket;
756
(iv) when compared to light duty vehi-
cles in model year 2003—
(I) a fuel economy that is two
and one half times the equivalent fuel
economy of comparable light duty ve-
hicles in model year 2003; and
(II) near zero emissions of air
pollutants; and
(v) vehicle fuel system crash integrity
and occupant protection.
(2) HYDROGEN ENERGY AND ENERGY INFRA-
STRUCTURE.—For hydrogen energy and energy in-
frastructure, the goals of the program are to enable
a commitment not later than 2015 that will lead to
infrastructure by 2020 that will provide—
(A) safe and convenient refueling;
(B) improved overall efficiency;
(C) widespread availability of hydrogen
from domestic energy sources through—
(i) production, with consideration of
emissions levels;
(ii) delivery, including transmission by
pipeline and other distribution methods for
hydrogen; and
757
(iii) storage, including storage in sur-
face transportation vehicles;
(D) hydrogen for fuel cells, internal com-
bustion engines, and other energy conversion
devices for portable, stationary, and transpor-
tation applications; and
(E) other technologies consistent with the
Department’s plan.
(3) FUEL CELLS.—The goals for fuel cells and
their portable, stationary, and transportation appli-
cations are to enable—
(A) safe, economical, and environmentally
sound hydrogen fuel cells;
(B) fuel cells for light duty and other vehi-
cles; and
(C) other technologies consistent with the
Department’s plan.
(c) DEMONSTRATION.—In carrying out the program
under this section, the Secretary shall fund a limited num-
ber of demonstration projects. In selecting projects under
this subsection, the Secretary shall, to the extent prac-
ticable and in the public interest, select projects that—
(1) involve using hydrogen and related products
at facilities or installations that would exist without
the demonstration program, such as existing office
758
buildings, military bases, vehicle fleet centers, tran-
sit bus authorities, or parks;
(2) depend on reliable power from hydrogen to
carry out essential activities;
(3) lead to the replication of hydrogen tech-
nologies and draw such technologies into the market-
place;
(4) integrate in a single project both mobile and
stationary applications of hydrogen fuel cells;
(5) address the interdependency of demand for
hydrogen fuel cell applications and hydrogen fuel in-
frastructure; and
(6) raise awareness of hydrogen technology
among the public.
(d) DEPLOYMENT.—In carrying out the program
under this section, the Secretary shall, in partnership with
the private sector, conduct activities to facilitate the de-
ployment of—
(1) hydrogen energy and energy infrastructure;
(2) fuel cells;
(3) advanced vehicle technologies; and
(4) clean fuels in addition to hydrogen.
(e) FUNDING.—(1) The Secretary shall carry out the
program under this section using a competitive, merit-re-
view process and consistent with the generally applicable
759
Federal laws and regulations governing awards of finan-
cial assistance, contracts, or other agreements.
(2) Activities under this section may be carried out
by funding nationally recognized university-based research
centers.
(3) The Secretary shall endeavor to avoid duplication
or displacement of other research and development pro-
grams and activities.
(f) COST SHARING.—
(1) REQUIREMENT.—For projects carried out
through grants, cooperative agreements, or contracts
under this section, the Secretary shall require a
commitment from non-Federal sources of at least—
(A) 20 percent of the cost of a project, ex-
cept projects carried out under subsections (c)
and (d); and
(B) 50 percent of the cost of a project car-
ried out under subsection (c) or (d).
(2) REDUCTION.—The Secretary may reduce
the non-Federal requirement under paragraph (1) if
the Secretary determines that—
(A) the reduction is appropriate consid-
ering the technological risks involved; or
760
(B) the project is for technical analyses or
other activities that the Secretary does not ex-
pect to result in a marketable product.
(3) SIZE OF NON-FEDERAL SHARE.—The Sec-
retary may consider the size of the non-Federal
share in selecting projects.
SEC. 60004. INTERAGENCY TASK FORCE.
(a) ESTABLISHMENT.—Not later than 120 days after
the date of enactment of this Act, the President shall es-
tablish an interagency task force chaired by the Secretary
or his designee with representatives from each of the fol-
lowing:
(1) The Office of Science and Technology Pol-
icy within the Executive Office of the President.
(2) The Department of Transportation.
(3) The Department of Defense.
(4) The Department of Commerce (including
the National Institute of Standards and Tech-
nology).
(5) The Environmental Protection Agency.
(6) The National Aeronautics and Space Ad-
ministration.
(7) Other Federal agencies as the Secretary de-
termines appropriate.
(b) DUTIES.—
761
(1) PLANNING.—The interagency task force
shall work toward—
(A) a safe, economical, and environ-
mentally sound fuel infrastructure for hydrogen
and hydrogen-carrier fuels, including an infra-
structure that supports buses and other fleet
transportation;
(B) fuel cells in government and other ap-
plications, including portable, stationary, and
transportation applications;
(C) distributed power generation, including
the generation of combined heat, power, and
clean fuels including hydrogen;
(D) uniform hydrogen codes, standards,
and safety protocols; and
(E) vehicle hydrogen fuel system integrity
safety performance.
(2) ACTIVITIES.—The interagency task force
may organize workshops and conferences, may issue
publications, and may create databases to carry out
its duties. The interagency task force shall—
(A) foster the exchange of generic, non-
proprietary information and technology among
industry, academia, and government;
762
(B) develop and maintain an inventory and
assessment of hydrogen, fuel cells, and other
advanced technologies, including the commercial
capability of each technology for the economic
and environmentally safe production, distribu-
tion, delivery, storage, and use of hydrogen;
(C) integrate technical and other informa-
tion made available as a result of the programs
and activities under this division;
(D) promote the marketplace introduction
of infrastructure for hydrogen and other clean
fuel vehicles; and
(E) conduct an education program to pro-
vide hydrogen and fuel cell information to po-
tential end-users.
(c) AGENCY COOPERATION.—The heads of all agen-
cies, including those whose agencies are not represented
on the interagency task force, shall cooperate with and
furnish information to the interagency task force, the Ad-
visory Committee, and the Department.
SEC. 60005. ADVISORY COMMITTEE.
(a) ESTABLISHMENT.—The Hydrogen Technical and
Fuel Cell Advisory Committee is established to advise the
Secretary on the programs and activities under this divi-
sion.
763
(b) MEMBERSHIP.—
(1) MEMBERS.—The Advisory Committee is
comprised of not fewer than 12 nor more than 25
members. These members shall be appointed by the
Secretary to represent domestic industry, academia,
professional societies, government agencies, and fi-
nancial, environmental, and other appropriate orga-
nizations based on the Department’s assessment of
the technical and other qualifications of committee
members and the needs of the Advisory Committee.
(2) TERMS.—The term of a member of the Ad-
visory Committee shall not be more than 3 years.
The Secretary may appoint members of the Advisory
Committee in a manner that allows the terms of the
members serving at any time to expire at spaced in-
tervals so as to ensure continuity in the functioning
of the Advisory Committee. A member of the Advi-
sory Committee whose term is expiring may be re-
appointed.
(3) CHAIRPERSON.—The Advisory Committee
shall have a chairperson, who is elected by the mem-
bers from among their number.
(c) REVIEW.—The Advisory Committee shall review
and make recommendations to the Secretary on—
764
(1) the implementation of programs and activi-
ties under this division;
(2) the safety, economical, and environmental
consequences of technologies for the production, dis-
tribution, delivery, storage, or use of hydrogen en-
ergy and fuel cells; and
(3) the plan under section 60002.
(d) RESPONSE.—(1) The Secretary shall consider,
but need not adopt, any recommendations of the Advisory
Committee under subsection (c).
(2) The Secretary shall transmit a biennial report to
the Congress describing any recommendations made by
the Advisory Committee since the previous report. The re-
port shall include a description of how the Secretary has
implemented or plans to implement the recommendations,
or an explanation of the reasons that a recommendation
will not be implemented. The report shall be transmitted
along with the President’s budget proposal.
(e) SUPPORT.—The Secretary shall provide resources
necessary in the judgment of the Secretary for the Advi-
sory Committee to carry out its responsibilities under this
division.
SEC. 60006. EXTERNAL REVIEW.
(a) PLAN.—The Secretary shall enter into an ar-
rangement with a competitively selected nongovernmental
765
entity, such as the National Academy of Sciences, to re-
view the plan prepared under section 60002, which shall
be completed not later than six months after the entity
receives the plan. Not later than 45 days after receiving
the review, the Secretary shall transmit the review to the
Congress along with a plan to implement the review’s rec-
ommendations or an explanation of the reasons that a rec-
ommendation will not be implemented.
(b) ADDITIONAL REVIEW.—The Secretary shall enter
into an arrangement with a competitively selected non-
governmental entity, such as the National Academy of
Sciences, under which the entity will review the program
under section 60003 during the fourth year following the
date of enactment of this Act. The entity’s review shall
include the research priorities and technical milestones,
and evaluate the progress toward achieving them. The re-
view shall be completed no later than five years after the
date of enactment of this Act. Not later than 45 days after
receiving the review, the Secretary shall transmit the re-
view to the Congress along with a plan to implement the
review’s recommendations or an explanation for the rea-
sons that a recommendation will not be implemented.
SEC. 60007. MISCELLANEOUS PROVISIONS.
(a) REPRESENTATION.—The Secretary may rep-
resent the United States interests with respect to activities
766
and programs under this division, in coordination with the
Department of Transportation, the National Institute of
Standards and Technology, and other relevant Federal
agencies, before governments and nongovernmental orga-
nizations including—
(1) other Federal, State, regional, and local
governments and their representatives;
(2) industry and its representatives, including
members of the energy and transportation indus-
tries; and
(3) in consultation with the Department of
State, foreign governments and their representatives
including international organizations.
(b) REGULATORY AUTHORITY.—Nothing in this divi-
sion shall be construed to alter the regulatory authority
of the Department.
SEC. 60008. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to carry out
this division, in addition to any amounts made available
for these purposes under other Acts—
(1) $273,500,000 for fiscal year 2004;
(2) $325,000,000 for fiscal year 2005;
(3) $375,000,000 for fiscal year 2006;
(4) $400,000,000 for fiscal year 2007; and
(5) $425,000,000 for fiscal year 2008.’’.
767
SEC. 60009. FUEL CELL PROGRAM AT NATIONAL PARKS.
The Secretary of Energy, in cooperation with the Sec-
retary of Interior and the National Park Service, is au-
thorized to establish a program to provide matching funds
to assist in the deployment of fuel cells at one or more
prominent National Parks. The Secretary of Energy shall
transmit to Congress within 1 year, and annually there-
after, a report describing any activities taken pursuant to
such program. The report shall address whether activities
taken pursuant to such program reduce the environmental
impacts of energy use at National Parks. There are au-
thorized to be appropriated $2,000,000 for each of fiscal
years 2004 through 2010 to carry out the purposes of this
section.
SEC. 60010. ADVANCED POWER SYSTEM TECHNOLOGY IN-
CENTIVE PROGRAM.
(a) PROGRAM.—The Secretary of Energy is author-
ized to establish an Advanced Power System Technology
Incentive Program to support the deployment of certain
advanced power system technologies and to improve and
protect certain critical governmental, industrial, and com-
mercial processes. Funds provided under this section shall
be used by the Secretary to make incentive payments to
eligible owners or operators of advanced power system
technologies to increase power generation through en-
hanced operational, economic, and environmental perform-
769
(2) the term ‘‘qualifying security and assured
power facility’’ means a qualifying advanced power
system technology facility determined by the Sec-
retary of Energy, in consultation with the Secretary
of Homeland Security, to be in critical need of se-
cure, reliable, rapidly available, high-quality power
for critical governmental, industrial, or commercial
applications.
(d) AUTHORIZATION.—There are authorized to be ap-
propriated to the Secretary of Energy for the purposes
of this section, $10,000,000 for each of the fiscal years
2004 through 2010.
DIVISION G—HOUSING
SEC. 70001. CAPACITY BUILDING FOR ENERGY-EFFICIENT,
AFFORDABLE HOUSING.
Section 4(b) of the HUD Demonstration Act of 1993
(42 U.S.C. 9816 note) is amended—
(1) in paragraph (1), by inserting before the
semicolon at the end the following: ‘‘, including ca-
pabilities regarding the provision of energy efficient,
affordable housing and residential energy conserva-
tion measures’’; and
(2) in paragraph (2), by inserting before the
semicolon the following: ‘‘, including such activities
relating to the provision of energy efficient, afford-
770
able housing and residential energy conservation
measures that benefit low-income families’’.
SEC. 70002. INCREASE OF CDBG PUBLIC SERVICES CAP FOR
ENERGY CONSERVATION AND EFFICIENCY
ACTIVITIES.
Section 105(a)(8) of the Housing and Community
Development Act of 1974 (42 U.S.C. 5305(a)(8)) is
amended—
(1) by inserting ‘‘or efficiency’’ after ‘‘energy
conservation’’;
(2) by striking ‘‘, and except that’’ and insert-
ing ‘‘; except that’’; and
(3) by inserting before the period at the end the
following: ‘‘; and except that each percentage limita-
tion under this paragraph on the amount of assist-
ance provided under this title that may be used for
the provision of public services is hereby increased
by 10 percent, but such percentage increase may be
used only for the provision of public services con-
cerning energy conservation or efficiency’’.
SEC. 70003. FHA MORTGAGE INSURANCE INCENTIVES FOR
ENERGY EFFICIENT HOUSING.
(a) SINGLE FAMILY HOUSING MORTGAGE INSUR-
ANCE.—Section 203(b)(2) of the National Housing Act
(12 U.S.C. 1709(b)(2)) is amended, in the first undesig-
771
nated paragraph beginning after subparagraph (B)(ii)(IV)
(relating to solar energy systems), by striking ‘‘20 per-
cent’’ and inserting ‘‘30 percent’’.
(b) MULTIFAMILY
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 207(c) of the National Housing Act (12
U.S.C. 1713(c)) is amended, in the second undesignated
paragraph beginning after paragraph (3) (relating to solar
energy systems and residential energy conservation meas-
ures), by striking ‘‘20 percent’’ and inserting ‘‘30 per-
cent’’.
(c) COOPERATIVE
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 213(p) of the National Housing Act (12
U.S.C. 1715e(p)) is amended by striking ‘‘20 per centum’’
and inserting ‘‘30 percent’’.
(d) REHABILITATION
AND NEIGHBORHOOD CON-
SERVATION HOUSING MORTGAGE INSURANCE.—Section
220(d)(3)(B)(iii)(IV) of the National Housing Act (12
U.S.C. 1715k(d)(3)(B)(iii)(IV)) is amended by striking
‘‘20 per centum’’ and inserting ‘‘30 percent’’.
(e) LOW-INCOME MULTIFAMILY HOUSING MORT-
GAGE INSURANCE.—Section 221(k) of the National Hous-
ing Act (12 U.S.C. 1715l(k)) is amended by striking ‘‘20
per centum’’ and inserting ‘‘30 percent’’.
(f) ELDERLY HOUSING MORTGAGE INSURANCE.—
Section 231(c)(2)(C) of the National Housing Act (12
772
U.S.C. 1715v(c)(2)(C)) is amended by striking ‘‘20 per
centum’’ and inserting ‘‘30 percent’’.
(g) CONDOMINIUM
HOUSING
MORTGAGE
INSUR-
ANCE.—Section 234(j) of the National Housing Act (12
U.S.C. 1715y(j)) is amended by striking ‘‘20 per centum’’
and inserting ‘‘30 percent’’.
SEC. 70004. PUBLIC HOUSING CAPITAL FUND.
Section 9 of the United States Housing Act of 1937
(42 U.S.C. 1437g) is amended—
(1) in subsection (d)(1)—
(A) in subparagraph (I), by striking ‘‘and’’
at the end;
(B) in subparagraph (J), by striking the
period at the end and inserting a semicolon;
and
(C) by adding at the end the following new
subparagraphs:
‘‘(K) improvement of energy and water-use
efficiency by installing fixtures and fittings that
conform to the American Society of Mechanical
Engineers/American National Standards Insti-
tute standards A112.19.2-1998 and A112.18.1-
2000, or any revision thereto, applicable at the
time of installation, and by increasing energy
efficiency and water conservation by such other
773
means as the Secretary determines are appro-
priate; and
‘‘(L) integrated utility management and
capital planning to maximize energy conserva-
tion and efficiency measures.’’; and
(2) in subsection (e)(2)(C)—
(A) by striking ‘‘The’’ and inserting the
following:
‘‘(i) IN GENERAL.—The’’; and
(B) by adding at the end the following:
‘‘(ii) THIRD
PARTY
CONTRACTS.—
Contracts described in clause (i) may in-
clude contracts for equipment conversions
to less costly utility sources, projects with
resident-paid utilities, and adjustments to
frozen base year consumption, including
systems repaired to meet applicable build-
ing and safety codes and adjustments for
occupancy rates increased by rehabilita-
tion.
‘‘(iii) TERM OF CONTRACT.—The total
term of a contract described in clause (i)
shall not exceed 20 years to allow longer
payback periods for retrofits, including
windows, heating system replacements,
774
wall insulation, site-based generations, ad-
vanced energy savings technologies, includ-
ing renewable energy generation, and other
such retrofits.’’.
SEC. 70005. GRANTS FOR ENERGY-CONSERVING IMPROVE-
MENTS FOR ASSISTED HOUSING.
Section 251(b)(1) of the National Energy Conserva-
tion Policy Act (42 U.S.C. 8231(1)) is amended—
(1) by striking ‘‘financed with loans’’ and in-
serting ‘‘assisted’’;
(2) by inserting after ‘‘1959,’’ the following:
‘‘which are eligible multifamily housing projects (as
such term is defined in section 512 of the Multi-
family Assisted Housing Reform and Affordability
Act of 1997 (42 U.S.C. 1437f note)) and are subject
to mortgage restructuring and rental assistance suf-
ficiency plans under such Act,’’; and
(3) by inserting after the period at the end of
the first sentence the following new sentence: ‘‘Such
improvements may also include the installation of
energy and water conserving fixtures and fittings
that conform to the American Society of Mechanical
Engineers/American National Standards Institute
standards A112.19.2-1998 and A112.18.1-2000, or
775
any revision thereto, applicable at the time of instal-
lation.’’.
SEC. 70006. NORTH AMERICAN DEVELOPMENT BANK.
Part 2 of subtitle D of title V of the North American
Free Trade Agreement Implementation Act (22 U.S.C.
290m–290m-3) is amended by adding at the end the fol-
lowing:
‘‘SEC. 545. SUPPORT FOR CERTAIN ENERGY POLICIES.
‘‘Consistent with the focus of the Bank’s Charter on
environmental infrastructure projects, the Board members
representing the United States should use their voice and
vote to encourage the Bank to finance projects related to
clean and efficient energy, including energy conservation,
that prevent, control, or reduce environmental pollutants
or contaminants.’’.
SEC. 70007. ENERGY-EFFICIENT APPLIANCES.
In purchasing appliances, a public housing agency
shall purchase energy-efficient appliances that are Energy
Star products or FEMP-designated products, as such
terms are defined in section 552 of the National Energy
Policy and Conservation Act (as amended by this Act),
unless the purchase of energy-efficient appliances is not
cost-effective to the agency.
776
SEC. 70008. ENERGY EFFICIENCY STANDARDS.
Section 109 of the Cranston-Gonzalez National Af-
fordable Housing Act (42 U.S.C. 12709) is amended—
(1) in subsection (a)—
(A) in paragraph (1)—
(i) by striking ‘‘1 year after the date
of the enactment of the Energy Policy Act
of 1992’’ and inserting ‘‘September 30,
2004’’;
(ii) in subparagraph (A), by striking
‘‘and’’ at the end;
(iii) in subparagraph (B), by striking
the period at the end and inserting ‘‘;
and’’; and
(iv) by adding at the end the fol-
lowing:
‘‘(C) rehabilitation and new construction of
public and assisted housing funded by HOPE
VI revitalization grants under section 24 of the
United States Housing Act of 1937 (42 U.S.C.
1437v), where such standards are determined
to be cost effective by the Secretary of Housing
and Urban Development.’’; and
(B) in paragraph (2), by striking ‘‘Council
of American’’ and all that follows through
777
‘‘90.1–1989’)’’ and inserting ‘‘2000 Inter-
national Energy Conservation Code’’;
(2) in subsection (b)—
(A) by striking ‘‘1 year after the date of
the enactment of the Energy Policy Act of
1992’’ and inserting ‘‘September 30, 2004’’;
and
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2000
International Energy Conservation Code’’; and
(3) in subsection (c)—
(A) in the heading, by striking ‘‘MODEL
ENERGY CODE’’ and inserting ‘‘THE INTER-
NATIONAL
ENERGY
CONSERVATION
CODE’’;
and
(B) by striking ‘‘CABO’’ and all that fol-
lows through ‘‘1989’’ and inserting ‘‘the 2000
International Energy Conservation Code’’.
SEC. 70009. ENERGY STRATEGY FOR HUD.
The Secretary of Housing and Urban Development
shall develop and implement an integrated strategy to re-
duce utility expenses through cost-effective energy con-
servation and efficiency measures and energy efficient de-
sign and construction of public and assisted housing. The
energy strategy shall include the development of energy
778
reduction goals and incentives for public housing agencies.
The Secretary shall submit a report to Congress, not later
than one year after the date of the enactment of this Act,
on the energy strategy and the actions taken by the De-
partment of Housing and Urban Development to monitor
the energy usage of public housing agencies and shall sub-
mit an update every two years thereafter on progress in
implementing the strategy.
Passed the House of Representatives April 11, 2003.
Attest:
Clerk.