SEC. 407. GEOTHERMAL. 
The Secretary shall conduct a program of research, 
development, demonstration, and commercial application 
for geothermal energy. The program shall focus on devel-
oping improved technologies for reducing the costs of geo-
thermal energy installations, including technologies for— 
(1) improving detection of geothermal re-
sources; 
(2) decreasing drilling costs; 
(3) decreasing maintenance costs through im-
proved materials; 
(4) increasing the potential for other revenue 
sources, such as mineral production; and 
(5) increasing the understanding of reservoir 
life cycle and management. 
SEC. 408. PHOTOVOLTAIC DEMONSTRATION PROGRAM. 
(a) IN GENERAL.—The Secretary shall establish a 
program of grants to States to demonstrate advanced pho-
tovoltaic technology. 
(b) REQUIREMENTS.—(1) To receive funding under 
the program under this section, a State must submit a 
proposal that demonstrates, to the satisfaction of the Sec-
retary, that the State will meet the requirements of sub-
section (f). 
(2) If a State has received funding under this section 
for the preceding year, the State must demonstrate, to the
satisfaction of the Secretary, that it complied with the re-
quirements of subsection (f) in carrying out the program 
during that preceding year, and that it will do so in the 
future. 
(3) Except as provided in subsection (c), each State 
submitting a qualifying proposal shall receive funding 
under the program based on the proportion of United 
States population in the State according to the 2000 cen-
sus. In each fiscal year, the portion of funds attributable 
under this paragraph to States that have not submitted 
qualifying proposals in the time and manner specified by 
the Secretary shall be distributed pro rata to the States 
that have submitted qualifying proposals in the specified 
time and manner. 
(c) COMPETITION.—If more than $80,000,000 is 
available for the program under this section for any fiscal 
year, the Secretary shall allocate 75 percent of the funds 
available according to subsection (b), and shall award the 
remaining 25 percent on a competitive basis to the States 
with the proposals the Secretary considers most likely to 
encourage the widespread adoption of photovoltaic tech-
nologies. 
(d) PROPOSALS.—Not later than 6 months after the 
date of enactment of this Act, and in each subsequent fis-
cal year for the life of the program, the Secretary shall
solicit proposals from the States to participate in the pro-
gram under this section. 
(e) COMPETITIVE CRITERIA.—In awarding funds in 
a competitive allocation under subsection (c), the Sec-
retary shall consider— 
(1) the likelihood of a proposal to encourage the 
demonstration of, or lower the costs of, advanced 
photovoltaic technologies; and 
(2) the extent to which a proposal is likely to— 
(A) maximize the amount of photovoltaics 
demonstrated; 
(B) maximize the proportion of non-Fed-
eral cost share; and 
(C) limit State administrative costs. 
(f) STATE PROGRAM.—A program operated by a 
State with funding under this section shall provide com-
petitive awards for the demonstration of advanced photo-
voltaic technologies. Each State program shall— 
(1) require a contribution of at least 60 percent 
per award from non-Federal sources, which may in-
clude any combination of State, local, and private 
funds, except that at least 10 percent of the funding 
must be supplied by the State; 
(2) limit awards for any single project to a 
maximum of $1,000,000;
(3) prohibit any nongovernmental recipient 
from receiving more than $1,000,000 per year; 
(4) endeavor to fund recipients in the commer-
cial, industrial, institutional, governmental, and resi-
dential sectors; 
(5) limit State administrative costs to no more 
than 10 percent of the grant; 
(6) report annually to the Department on— 
(A) the amount of funds disbursed; 
(B) the amount of photovoltaics purchased; 
and 
(C) the results of the monitoring under 
paragraph (7); 
(7) provide for measurement and verification of 
the output of a representative sample of the 
photovoltaics systems demonstrated throughout the 
average working life of the systems, or at least 20 
years; and 
(8) require that applicant buildings must have 
received an independent energy efficiency audit dur-
ing the 6-month period preceding the filing of the 
application. 
(g) UNEXPENDED FUNDS.—If a State fails to expend 
any funds received under subsection (b) or (c) within 3
years of receipt, such remaining funds shall be returned 
to the Treasury. 
(h) REPORTS.—The Secretary shall report to Con-
gress 5 years after funds are first distributed to the States 
under this section— 
(1) the amount of photovoltaics demonstrated; 
(2) the number of projects undertaken; 
(3) the administrative costs of the program; 
(4) the amount of funds that each State has 
not received because of a failure to submit a quali-
fying proposal, as described in subsection (b)(3); 
(5) the results of the monitoring under sub-
section (f)(7); and 
(6) the total amount of funds distributed, in-
cluding a breakdown by State. 
SEC. 409. ADDITIONAL PROGRAMS. 
(a) IN GENERAL.—The Secretary may conduct re-
search, development, demonstration, and commercial ap-
plication programs of— 
(1) ocean energy, including wave energy; 
(2) kinetic hydro turbines; and 
(3) the combined use of renewable energy tech-
nologies with one another and with other energy 
technologies. 
(b) MARINE RENEWABLE ENERGY STUDY.—
(1) STUDY.—The Secretary shall enter into an 
arrangement with the National Academy of Sciences 
to conduct a study on— 
(A) the feasibility of various methods of re-
newable generation of energy from the ocean, 
including energy from waves, tides, currents, 
and thermal gradients; and 
(B) the research, development, demonstra-
tion, and commercial application activities re-
quired to make marine renewable energy gen-
eration competitive with other forms of elec-
tricity generation. 
(2) TRANSMITTAL.—Not later than 1 year after 
the date of enactment of this Act, the Secretary 
shall transmit the study to Congress along with the 
Secretary’s recommendations for implementing the 
results of the study. 
SEC. 410. ANALYSIS AND EVALUATION. 
(a) IN GENERAL.—The Secretary shall conduct anal-
ysis and evaluation in support of the renewable energy 
programs under this title. These activities shall be used 
to guide budget and program decisions, and shall in-
clude— 
(1) economic and technical analysis of renew-
able energy potential, including resource assessment;