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(B) such other information as the Secretary 
determines would be useful in developing the re-
newable energy resources, including— 
(i) descriptions of surrounding terrain, 
population and load centers, nearby energy 
infrastructure, and the location of energy 
and water resources; 
(ii) available estimates of the costs 
needed to develop each resource; 
(iii) an identification of any barriers 
to providing adequate transmission for re-
mote sources of renewable energy resources 
to current and emerging markets; 
(iv) recommendations for removing or 
addressing those barriers; and 
(v) recommendations for providing ac-
cess to the electrical grid that do not un-
fairly disadvantage renewable or other en-
ergy producers. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary to carry out 
this section $10,000,000 for each of fiscal years 2006 
through 2010.
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SEC. 202. RENEWABLE ENERGY PRODUCTION INCENTIVE. 
(a) INCENTIVE PAYMENTS.—Section 1212(a) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is amend-
ed— 
(1) by striking the last sentence; 
(2) by designating the first, second, and third 
sentences as paragraphs (1), (2), and (3), respectively; 
(3) in paragraph (3) (as so designated), by strik-
ing ‘‘and which satisfies’’ and all that follows through 
‘‘deems necessary’’; and 
(4) by adding at the end the following: 
‘‘(4)(A) Subject to subparagraph (B), if there are in-
sufficient appropriations to make full payments for electric 
production from all qualified renewable energy facilities for 
a fiscal year, the Secretary shall assign— 
‘‘(i) 60 percent of appropriated funds for the fis-
cal year to facilities that use solar, wind, ocean 
(tidal, wave, current, and thermal), geothermal, or 
closed-loop (dedicated energy crops) biomass tech-
nologies to generate electricity; and 
‘‘(ii) 40 percent of appropriated funds for the 
fiscal year to other projects. 
‘‘(B) After submitting to Congress an explanation of 
the reasons for the alteration, the Secretary may alter the 
percentage requirements of subparagraph (A).’’.
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(b) QUALIFIED RENEWABLE ENERGY FACILITY.—Sec-
tion 1212(b) of the Energy Policy Act of 1992 (42 U.S.C. 
13317(b)) is amended— 
(1) by striking ‘‘a State or any political’’ and 
all that follows through ‘‘nonprofit electrical coopera-
tive’’ and inserting ‘‘a not-for-profit electric coopera-
tive, a public utility described in section 115 of the 
Internal Revenue Code of 1986, a State, Common-
wealth, territory, or possession of the United States, 
or the District of Columbia, or a political subdivision 
thereof, an Indian tribal government or subdivision 
thereof, or a Native Corporation (as defined in section 
3 of the Alaska Native Claims Settlement Act (43 
U.S.C. 1602)),’’; and 
(2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio-
mass,’’. 
(c) ELIGIBILITY WINDOW.—Section 1212(c) of the En-
ergy Policy Act of 1992 (42 U.S.C. 13317(c)) is amended 
by striking ‘‘during the 10-fiscal year period beginning 
with the first full fiscal year occurring after the enactment 
of this section’’ and inserting ‘‘before October 1, 2016’’. 
(d) PAYMENT PERIOD.—Section 1212(d) of the Energy 
Policy Act of 1992 (42 U.S.C. 13317(d)) is amended in the 
second sentence by inserting ‘‘, or in which the Secretary 
determines that all necessary Federal and State authoriza-
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tions have been obtained to begin construction of the facil-
ity’’ after ‘‘eligible for such payments’’. 
(e) AMOUNT OF PAYMENT.—Section 1212(e)(1) of the 
Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1)) is 
amended in the first sentence by inserting ‘‘landfill gas,’’ 
after ‘‘wind, biomass,’’. 
(f) TERMINATION OF AUTHORITY.—Section 1212(f) of 
the Energy Policy Act of 1992 (42 U.S.C. 13317(f)) is 
amended by striking ‘‘the expiration of’’ and all that follows 
through ‘‘of this section’’ and inserting ‘‘September 30, 
2026’’. 
(g) AUTHORIZATION
OF APPROPRIATIONS.—Section 
1212 of the Energy Policy Act of 1992 (42 U.S.C. 13317) 
is amended by striking subsection (g) and inserting the fol-
lowing: 
‘‘(g) AUTHORIZATION
OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as are nec-
essary to carry out this section for each of fiscal years 2006 
through 2026, to remain available until expended.’’. 
SEC. 203. FEDERAL PURCHASE REQUIREMENT. 
(a) DEFINITIONS.—In this section: 
(1) BIOMASS.—The term ‘‘biomass’’ means any 
solid, nonhazardous, cellulosic material that is de-
rived from—
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(A) any of the following forest-related re-
sources: mill residue, precommercial thinning, 
slash, brush, or nonmerchantable material; 
(B) a solid wood waste material— 
(i) including a waste pallet, crate, 
dunnage, manufacturing and construction 
wood waste (other than pressure-treated, 
chemically-treated, or painted wood waste), 
and landscape or right-of-way tree trim-
ming; but 
(ii) not including municipal solid 
waste (garbage), gas derived from the bio-
degradation of solid waste, or paper that is 
commonly recycled; 
(C) agriculture waste, including an orchard 
tree crop, vineyard, grain, legume, sugar, and 
other crop byproduct or residue, and a livestock 
waste nutrient; or 
(D) a plant that is grown exclusively as a 
fuel for the production of electricity. 
(2) RENEWABLE ENERGY.—The term ‘‘renewable 
energy’’ means electric energy generated from solar, 
wind, biomass, ocean (tidal, wave, current, and ther-
mal), landfill gas, geothermal, municipal solid waste, 
or new hydroelectric generation capacity achieved
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from increased efficiency or additions of new capacity 
at an existing hydroelectric project. 
(b) REQUIREMENT.—The President, acting through the 
Secretary, shall seek to ensure that, to the extent economi-
cally feasible and technically practicable, of the total quan-
tity of electric energy the Federal Government consumes 
during any fiscal year, the following amounts shall be re-
newable energy: 
(1) Not less than 3 percent in each of fiscal years 
2007 through 2009. 
(2) Not less than 5 percent in each of fiscal years 
2010 through 2012. 
(3) Not less than 7.5 percent in fiscal year 2013 
and each fiscal year thereafter. 
(c) CALCULATION.—For purposes of determining com-
pliance with the requirement of this section, the quantity 
of renewable energy shall be doubled if— 
(1) the renewable energy is produced and used 
onsite at a Federal facility; 
(2) the renewable energy is produced on Federal 
land and used at a Federal facility; or 
(3) the renewable energy is produced on Indian 
land (as defined in section 2601 of the Energy Policy 
Act of 1992) and used at a Federal facility.
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(d) REPORT.—Not later than April 15, 2007, and 
every 2 years thereafter, the Secretary shall provide to Con-
gress a report on the progress of the Federal Government 
in meeting the goals established by this section. 
Subtitle B—Reliable Fuels 
SEC. 211. RENEWABLE CONTENT OF GASOLINE. 
(a) IN GENERAL.—Section 211 of the Clean Air Act 
(42 U.S.C. 7545) is amended— 
(1) by redesignating subsection (o) as subsection 
(r); and 
(2) by inserting after subsection (n) the fol-
lowing: 
‘‘(o) RENEWABLE FUEL PROGRAM.— 
‘‘(1) DEFINITIONS.—In this section: 
‘‘(A) CELLULOSIC BIOMASS ETHANOL.—The 
term ‘cellulosic biomass ethanol’ means ethanol 
derived from any lignocellulosic or hemicellulosic 
matter that is available on a renewable or recur-
ring basis, including— 
‘‘(i) dedicated energy crops and trees; 
‘‘(ii) wood and wood residues; 
‘‘(iii) plants; 
‘‘(iv) grasses; 
‘‘(v) agricultural residues; 
‘‘(vi) fibers;
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‘‘(vii) animal wastes and other waste 
materials; and 
‘‘(viii) municipal solid waste. 
‘‘(B) RENEWABLE FUEL.— 
‘‘(i) IN GENERAL.—The term ‘renew-
able fuel’ means motor vehicle fuel that— 
‘‘(I)(aa) is produced from grain, 
starch, oilseeds, sugarcane, sugar beets, 
sugar components, tobacco, potatoes, or 
other biomass; or 
‘‘(bb) is natural gas produced 
from a biogas source, including a land-
fill, sewage waste treatment plant, 
feedlot, or other place where decaying 
organic material is found; and 
‘‘(II) is used to replace or reduce 
the quantity of fossil fuel present in a 
fuel mixture used to operate a motor 
vehicle. 
‘‘(ii) INCLUSION.—The term ‘renewable 
fuel’ includes— 
‘‘(I) cellulosic biomass ethanol; 
and
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‘‘(II) biodiesel (as defined in sec-
tion 312(f) of the Energy Policy Act of 
1992 (42 U.S.C. 13220(f))). 
‘‘(C) SMALL
REFINERY.—The term ‘small 
refinery’ means a refinery for which the average 
aggregate daily crude oil throughput for a cal-
endar year (as determined by dividing the aggre-
gate throughput for the calendar year by the 
number of days in the calendar year) does not 
exceed 75,000 barrels. 
‘‘(2) RENEWABLE FUEL PROGRAM.— 
‘‘(A) REGULATIONS.— 
‘‘(i) IN GENERAL.—Not later than 1 
year after the date of enactment of this 
paragraph, the Administrator shall promul-
gate regulations to ensure that gasoline sold 
or introduced into commerce in the United 
States (except in noncontiguous States or 
territories), on an annual average basis, 
contains the applicable volume of renewable 
fuel determined in accordance with sub-
paragraph (B). 
‘‘(ii) NONCONTIGUOUS
STATE
OPT- 
IN.—
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‘‘(I) IN GENERAL.—On the peti-
tion of a noncontiguous State or terri-
tory, the Administrator may allow the 
renewable fuel program established 
under this subsection to apply in the 
noncontiguous State or territory at the 
same time or any time after the Ad-
ministrator promulgates regulations 
under this subparagraph. 
‘‘(II) OTHER
ACTIONS.—In car-
rying out this clause, the Adminis-
trator may— 
‘‘(aa) issue or revise regula-
tions under this paragraph; 
‘‘(bb) 
establish 
applicable 
percentages under paragraph (3); 
‘‘(cc) provide for the genera-
tion of credits under paragraph 
(5); and 
‘‘(dd) take such other actions 
as are necessary to allow for the 
application of the renewable fuels 
program in a noncontiguous State 
or territory.
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‘‘(iii) PROVISIONS OF REGULATIONS.— 
Regardless of the date of promulgation, the 
regulations promulgated under clause (i)— 
‘‘(I) shall contain compliance pro-
visions applicable to refineries, blend-
ers, distributors, and importers, as ap-
propriate, to ensure that the require-
ments of this paragraph are met; but 
‘‘(II) shall not— 
‘‘(aa) 
restrict 
geographic 
areas in which renewable fuel 
may be used; or 
‘‘(bb) impose any per-gallon 
obligation for the use of renewable 
fuel. 
‘‘(iv) REQUIREMENT IN CASE OF FAIL-
URE
TO
PROMULGATE
REGULATIONS.—If 
the Administrator does not promulgate reg-
ulations under clause (i), the percentage of 
renewable fuel in gasoline sold or dispensed 
to consumers in the United States, on a vol-
ume basis, shall be 3.2 percent for calendar 
year 2006. 
‘‘(B) APPLICABLE VOLUME.—
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‘‘(i) CALENDAR YEARS 2006 THROUGH 
2012.—For the purpose of subparagraph (A), 
the applicable volume for any of calendar 
years 2006 through 2012 shall be deter-
mined in accordance with the following 
table: 
Applicable volume of 
renewable fuel 
‘‘Calendar year: 
(in billions of gallons): 
2006 ................................................................................................
4.0 
2007 ................................................................................................
4.7 
2008 ................................................................................................
5.4 
2009 ................................................................................................
6.1 
2010 ................................................................................................
6.8 
2011 ................................................................................................
7.4 
2012 ................................................................................................
8.0. 
‘‘(ii) 
CALENDAR
YEAR
2013
AND 
THEREAFTER.—Subject to clauses (iii) and 
(iv), for the purposes of subparagraph (A), 
the applicable volume for calendar year 
2013 and each calendar year thereafter 
shall be determined by the Administrator, 
in coordination with the Secretary of Agri-
culture and the Secretary of Energy, based 
on a review of the implementation of the 
program 
during 
calendar 
years 
2006 
through 2012, including a review of— 
‘‘(I) the impact of the use of re-
newable fuels on the environment, air
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quality, energy security, job creation, 
and rural economic development; and 
‘‘(II) the expected annual rate of 
future production of renewable fuels, 
including cellulosic ethanol. 
‘‘(iii) MINIMUM
QUANTITY
DERIVED 
FROM CELLULOSIC BIOMASS.—For calendar 
year 2013 and each calendar year there-
after— 
‘‘(I) the applicable volume re-
ferred to in clause (ii) shall contain a 
minimum of 250,000,000 gallons that 
are derived from cellulosic biomass; 
and 
‘‘(II) the 2.5-to-1 ratio referred to 
in paragraph (4) shall not apply. 
‘‘(iv) 
MINIMUM
APPLICABLE
VOL-
UME.—For the purpose of subparagraph 
(A), the applicable volume for calendar year 
2013 and each calendar year thereafter 
shall be not less than the product obtained 
by multiplying— 
‘‘(I) the number of gallons of gaso-
line that the Administrator estimates
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will be sold or introduced into com-
merce in the calendar year; and 
‘‘(II) the ratio that— 
‘‘(aa) 8,000,000,000 gallons 
of renewable fuel; bears to 
‘‘(bb) the number of gallons 
of gasoline sold or introduced into 
commerce in calendar year 2012. 
‘‘(3) APPLICABLE PERCENTAGES.— 
‘‘(A) PROVISION OF ESTIMATE OF VOLUMES 
OF GASOLINE SALES.—Not later than October 31 
of each of calendar years 2005 through 2011, the 
Administrator of the Energy Information Ad-
ministration shall provide to the Administrator 
of the Environmental Protection Agency an esti-
mate, with respect to the following calendar year, 
of the volumes of gasoline projected to be sold or 
introduced into commerce in the United States. 
‘‘(B) DETERMINATION OF APPLICABLE PER-
CENTAGES.— 
‘‘(i) IN GENERAL.—Not later than No-
vember 30 of each of calendar years 2005 
through 2012, based on the estimate pro-
vided under subparagraph (A), the Admin-
istrator of the Environmental Protection
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Agency shall determine and publish in the 
Federal Register, with respect to the fol-
lowing calendar year, the renewable fuel ob-
ligation that ensures that the requirements 
of paragraph (2) are met. 
‘‘(ii) REQUIRED ELEMENTS.—The re-
newable fuel obligation determined for a 
calendar year under clause (i) shall— 
‘‘(I) be applicable to refineries, 
blenders, and importers, as appro-
priate; 
‘‘(II) be expressed in terms of a 
volume percentage of gasoline sold or 
introduced 
into 
commerce 
in 
the 
United States; and 
‘‘(III) subject to subparagraph 
(C)(i), consist of a single applicable 
percentage that applies to all categories 
of persons specified in subclause (I). 
‘‘(C) ADJUSTMENTS.—In determining the 
applicable percentage for a calendar year, the 
Administrator shall make adjustments— 
‘‘(i) to prevent the imposition of redun-
dant obligations on any person specified in 
subparagraph (B)(ii)(I); and
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‘‘(ii) to account for the use of renew-
able fuel during the previous calendar year 
by small refineries that are exempt under 
paragraph (9). 
‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the 
purpose of paragraph (2), 1 gallon of cellulosic bio-
mass ethanol shall be considered to be the equivalent 
of 2.5 gallons of renewable fuel. 
‘‘(5) CREDIT PROGRAM.— 
‘‘(A) IN
GENERAL.—The regulations pro-
mulgated under paragraph (2)(A) shall pro-
vide— 
‘‘(i) for the generation of an appro-
priate amount of credits by any person that 
refines, blends, or imports gasoline that con-
tains a quantity of renewable fuel that is 
greater than the quantity required under 
paragraph (2); 
‘‘(ii) for the generation of an appro-
priate amount of credits for biodiesel; and 
‘‘(iii) for the generation of credits by 
small refineries in accordance with para-
graph (9)(C). 
‘‘(B) USE OF CREDITS.—A person that gen-
erates credits under subparagraph (A) may use
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the credits, or transfer all or a portion of the 
credits to another person, for the purpose of com-
plying with paragraph (2). 
‘‘(C) DURATION OF CREDITS.—A credit gen-
erated under this paragraph shall be valid to 
show compliance for the calendar year in which 
the credit was generated. 
‘‘(D) INABILITY
TO
GENERATE
OR
PUR-
CHASE
SUFFICIENT
CREDITS.—The regulations 
promulgated under paragraph (2)(A) shall in-
clude provisions allowing any person that is un-
able to generate or purchase sufficient credits to 
meet the requirements of paragraph (2) to carry 
forward a renewable fuel deficit on condition 
that the person, in the calendar year following 
the year in which the renewable fuel deficit is 
created— 
‘‘(i) achieves compliance with the re-
newable fuel requirement under paragraph 
(2); and 
‘‘(ii) generates or purchases additional 
renewable fuel credits to offset the renewable 
fuel deficit of the previous year. 
‘‘(6) SEASONAL
VARIATIONS
IN
RENEWABLE 
FUEL USE.—
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‘‘(A) STUDY.—For each of calendar years 
2006 through 2012, the Administrator of the En-
ergy Information Administration shall conduct a 
study of renewable fuel blending to determine 
whether there are excessive seasonal variations in 
the use of renewable fuel. 
‘‘(B) REGULATION OF EXCESSIVE SEASONAL 
VARIATIONS.—If, for any calendar year, the Ad-
ministrator of the Energy Information Adminis-
tration, based on the study under subparagraph 
(A), makes the determinations specified in sub-
paragraph (C), the Administrator of the Envi-
ronmental Protection Agency shall promulgate 
regulations to ensure that 35 percent or more of 
the quantity of renewable fuel necessary to meet 
the requirements of paragraph (2) is used during 
each of the 2 periods specified in subparagraph 
(D) of each subsequent calendar year. 
‘‘(C) DETERMINATIONS.—The determina-
tions referred to in subparagraph (B) are that— 
‘‘(i) less than 35 percent of the quan-
tity of renewable fuel necessary to meet the 
requirements of paragraph (2) has been 
used during 1 of the 2 periods specified in 
subparagraph (D) of the calendar year; and
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HR 6 PAP 
‘‘(ii) a pattern of excessive seasonal 
variation described in clause (i) will con-
tinue in subsequent calendar years. 
‘‘(D) PERIODS.—The 2 periods referred to 
in this paragraph are— 
‘‘(i) April through September; and 
‘‘(ii) January through March and Oc-
tober through December. 
‘‘(E) EXCLUSION.—Renewable fuel blended 
or consumed in calendar year 2006 in a State 
that has received a waiver under section 209(b) 
shall not be included in the study under sub-
paragraph (A). 
‘‘(F) STATE EXEMPTION FROM SEASONALITY 
REQUIREMENTS.—Notwithstanding 
any 
other 
provision of law, the seasonality requirement re-
lating to renewable fuel use established by this 
paragraph shall not apply to any State that has 
received a waiver under section 209(b). 
‘‘(7) WAIVERS.— 
‘‘(A) IN GENERAL.—The Administrator, in 
consultation with the Secretary of Agriculture 
and the Secretary of Energy, may waive the re-
quirements of paragraph (2) in whole or in part 
on petition by 1 or more States by reducing the