368 
(2) DEVELOPMENT.— 
(A) WRITTEN
RECOMMENDATIONS.—Before 
drafting an annual plan under this subsection, 
the Secretary shall solicit specific written rec-
ommendations from the consortia receiving 
awards under subsection (b) and the Unconven-
tional Resources Technology Advisory Committee 
for each element to be addressed in the plan, in-
cluding those described in subparagraph (D). 
(B) CONSULTATION.—The Secretary shall 
consult regularly with the consortia throughout 
the preparation of the annual plan. 
(C) PUBLICATION.—The Secretary shall 
transmit to Congress and publish in the Federal 
Register the annual plan, along with any writ-
ten comments received under subparagraph (A). 
(D) CONTENTS.—The annual plan shall de-
scribe the ongoing and prospective activities 
under this section and shall include a list of any 
solicitations for awards that the Secretary plans 
to issue to carry out activities, including the top-
ics for such work, who would be eligible to apply, 
selection criteria, and the duration of awards. 
(3) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the Sec-
369 
retary of the Interior, shall provide an annual report 
to Congress with the President’s budget on the esti-
mated cumulative increase in Federal royalty receipts 
(if any) resulting from the implementation of this 
part. The initial report under this paragraph shall be 
submitted in the first President’s budget following the 
completion of the first annual plan required under 
this subsection. 
§ 944. Additional requirements for awards 
(a) DEMONSTRATION PROJECTS.—An application for 
an award under this part for a demonstration project shall 
describe with specificity the intended commercial use of the 
technology to be demonstrated. 
(b) FLEXIBILITY
IN
LOCATING
DEMONSTRATION 
PROJECTS.—Subject to the limitation in section 941(c), a 
demonstration project under this part relating to an ultra- 
deepwater technology or an ultra-deepwater architecture 
may be conducted in deepwater depths. 
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 
award under this part is made to a consortium (other than 
the program consortium), the consortium shall provide to 
the Secretary a signed contract agreed to by all members 
of the consortium describing the rights of each member to 
intellectual property used or developed under the award.
370 
(d) TECHNOLOGY TRANSFER.—2.5 percent of the 
amount of each award made under this part shall be des-
ignated for technology transfer and outreach activities 
under this title. 
(e) COST SHARING REDUCTION FOR INDEPENDENT 
PRODUCERS.—In applying the cost sharing requirements 
under section 972 to an award under this part the Sec-
retary may reduce or eliminate the non-Federal require-
ment if the Secretary determines that the reduction is nec-
essary and appropriate considering the technological risks 
involved in the project. 
§ 945. Advisory committees 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Secretary 
shall establish an advisory committee to be known as 
the Ultra-Deepwater Advisory Committee. 
(2) 
MEMBERSHIP.—The 
advisory 
committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) individuals with extensive experience or 
operational knowledge of offshore natural gas 
and other petroleum exploration and production; 
(B) individuals broadly representative of 
the affected interests in ultra-deepwater natural
371 
gas and other petroleum production, including 
interests in environmental protection and safe 
operations; 
(C) no individuals who are Federal employ-
ees; and 
(D) no individuals who are board members, 
officers, or employees of the program consortium. 
(3) DUTIES.—The advisory committee under this 
subsection shall— 
(A) advise the Secretary on the development 
and implementation of programs under this part 
related to ultra-deepwater natural gas and other 
petroleum resources; and 
(B) carry out section 942(e)(2)(B). 
(4) COMPENSATION.—A member of the advisory 
committee under this subsection shall serve without 
compensation but shall receive travel expenses in ac-
cordance with applicable provisions under subchapter 
I of chapter 57 of title 5, United States Code. 
(b) UNCONVENTIONAL RESOURCES TECHNOLOGY AD-
VISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Secretary 
shall establish an advisory committee to be known as
372 
the Unconventional Resources Technology Advisory 
Committee. 
(2) 
MEMBERSHIP.—The 
advisory 
committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) a majority of members who are employ-
ees or representatives of independent producers of 
natural gas and other petroleum, including 
small producers; 
(B) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production; 
(C) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration 
and production, including interests in environ-
mental protection and safe operations; and 
(D) no individuals who are Federal employ-
ees. 
(3) DUTIES.—The advisory committee under this 
subsection shall advise the Secretary on the develop-
ment and implementation of activities under this 
part related to unconventional natural gas and other 
petroleum resources.
373 
(4) COMPENSATION.—A member of the advisory 
committee under this subsection shall serve without 
compensation but shall receive travel expenses in ac-
cordance with applicable provisions under subchapter 
I of chapter 57 of title 5, United States Code. 
(c) PROHIBITION.—No advisory committee established 
under this section shall make recommendations on funding 
awards to particular consortia or other entities, or for spe-
cific projects. 
§ 946. Limits on participation 
An entity shall be eligible to receive an award under 
this part only if the Secretary finds— 
(1) that the entity’s participation in the pro-
gram under this part would be in the economic inter-
est of the United States; and 
(2) that either— 
(A) the entity is a United States-owned en-
tity organized under the laws of the United 
States; or 
(B) the entity is organized under the laws 
of the United States and has a parent entity or-
ganized under the laws of a country that af-
fords— 
(i) to United States-owned entities op-
portunities, comparable to those afforded to
374 
any other entity, to participate in any co-
operative research venture similar to those 
authorized under this part; 
(ii) to United States-owned entities 
local investment opportunities comparable 
to those afforded to any other entity; and 
(iii) adequate and effective protection 
for the intellectual property rights of United 
States-owned entities. 
§ 947. Sunset 
The authority provided by this part shall terminate 
on September 30, 2014. 
§ 948. Definitions 
In this part: 
(1) DEEPWATER.—The term ‘‘deepwater’’ means 
a water depth that is greater than 200 but less than 
1,500 meters. 
(2) INDEPENDENT PRODUCER OF OIL OR GAS.— 
(A) IN GENERAL.—The term ‘‘independent 
producer of oil or gas’’ means any person that 
produces oil or gas other than a person to whom 
subsection (c) of section 613A of the Internal 
Revenue Code of 1986 does not apply by reason 
of paragraph (2) (relating to certain retailers) or
375 
paragraph (4) (relating to certain refiners) of 
section 613A(d) of such Code. 
(B) RULES FOR APPLYING PARAGRAPHS (2) 
AND (4) OF SECTION 613A(d).—For purposes of 
subparagraph (A), paragraphs (2) and (4) of 
section 613A(d) of the Internal Revenue Code of 
1986 shall be applied by substituting ‘‘calendar 
year’’ for ‘‘taxable year’’ each place it appears in 
such paragraphs. 
(3) PROGRAM
CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 942(d). 
(4) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(5) SMALL PRODUCER.—The term ‘‘small pro-
ducer’’ means an entity organized under the laws of 
the United States with production levels of less than 
1,000 barrels per day of oil equivalent. 
(6) ULTRA-DEEPWATER.—The term ‘‘ultra-deep-
water’’ means a water depth that is equal to or great-
er than 1,500 meters.
376 
(7) ULTRA-DEEPWATER
ARCHITECTURE.—The 
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or pro-
duction of, natural gas or other petroleum resources 
located at ultra-deepwater depths. 
(8) ULTRA-DEEPWATER TECHNOLOGY.—The term 
‘‘ultra-deepwater technology’’ means a discrete tech-
nology that is specially suited to address 1 or more 
challenges associated with the exploration for, or pro-
duction of, natural gas or other petroleum resources 
located at ultra-deepwater depths. 
(9) UNCONVENTIONAL NATURAL GAS AND OTHER 
PETROLEUM RESOURCE.—The term ‘‘unconventional 
natural gas and other petroleum resource’’ means nat-
ural gas and other petroleum resource located onshore 
in an economically inaccessible geological formation, 
including resources of small producers. 
§ 949. Funding 
(a) IN GENERAL.— 
(1) OIL AND GAS LEASE INCOME.—For each of 
fiscal years 2005 through 2014, from any Federal 
royalties, rents, and bonuses derived from Federal on-
shore and offshore oil and gas leases issued under the 
Outer Continental Shelf Lands Act and the Mineral 
Leasing Act which are deposited in the Treasury, and
377 
after distribution of any such funds as described in 
subsection (c), $50,000,000 shall be deposited into the 
Ultra-Deepwater and Unconventional Natural Gas 
and Other Petroleum Research Fund (in this section 
referred to as the Fund). For purposes of this section, 
the term ‘‘royalties’’ excludes proceeds from the sale of 
royalty production taken in kind and royalty produc-
tion that is transferred under section 27(a)(3) of the 
Outer Continental Shelf Lands Act (43 U.S.C. 
1353(a)(3)). 
(2) AUTHORIZATION
OF
APPROPRIATIONS.—In 
addition to amounts described in paragraph (1), there 
are authorized to be appropriated to the Secretary, to 
be deposited in the Fund, $150,000,000 for each of the 
fiscal years 2005 through 2014, to remain available 
until expended. 
(b) OBLIGATIONAL AUTHORITY.—Monies in the Fund 
shall be available to the Secretary for obligation under this 
part without fiscal year limitation, to remain available 
until expended. 
(c) PRIOR DISTRIBUTIONS.—The distributions de-
scribed in subsection (a) are those required by law— 
(1) to States and to the Reclamation Fund under 
the Mineral Leasing Act (30 U.S.C. 191(a)); and
378 
(2) to other funds receiving monies from Federal 
oil and gas leasing programs, including— 
(A) any recipients pursuant to section 8(g) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(g)); 
(B) the Land and Water Conservation 
Fund, pursuant to section 2(c) of the Land and 
Water Conservation Fund Act of 1965 (16 
U.S.C. 4601–5(c)); 
(C) the Historic Preservation Fund, pursu-
ant to section 108 of the National Historic Pres-
ervation Act (16 U.S.C. 470h); and 
(D) the Secure Energy Reinvestment Fund. 
(d) ALLOCATION.—Amounts obligated from the Fund 
under this section in each fiscal year shall be allocated as 
follows: 
(1) 50 percent shall be for activities under sec-
tion 942. 
(2) 35 percent shall be for activities under sec-
tion 943(d)(1). 
(3) 10 percent shall be for activities under sec-
tion 943(d)(2). 
(4) 5 percent shall be for research under section 
941(d).
379 
(e) FUND.—There is hereby established in the Treasury 
of the United States a separate fund to be known as the 
‘‘Ultra-Deepwater and Unconventional Natural Gas and 
Other Petroleum Research Fund’’. 
Subtitle F—Energy Sciences 
§ 953. Plan for Fusion Energy Sciences Program 
(a) DECLARATION OF POLICY.—It shall be the policy 
of the United States to conduct a program of activities to 
ensure that the United States is competitive with other na-
tions in providing fusion energy for its own needs and the 
needs of other nations. 
(b) PLANNING.— 
(1) IN GENERAL.—Not later than 180 days after 
the date of enactment of this Act, the Secretary shall 
present to Congress a plan, with proposed cost esti-
mates, budgets, and potential international partners, 
for the implementation of the policy described in sub-
section (a). 
(2) COSTS AND SCHEDULES.—Such plan shall 
also address the status of and, to the degree possible, 
costs and schedules for— 
(A) the design and implementation of inter-
national or national facilities for the testing of 
fusion materials; and
380 
(B) the design and implementation of inter-
national or national facilities for the testing and 
development of key fusion technologies. 
§ 954. Spallation Neutron Source 
(a) DEFINITION.—For the purposes of this section, the 
term ‘‘Spallation Neutron Source’’ means Department 
Project 99–E–334, Oak Ridge National Laboratory, Oak 
Ridge, Tennessee. 
(b) REPORT.—The Secretary shall report on the Spall-
ation Neutron Source as part of the Department’s annual 
budget submission, including a description of the achieve-
ment of milestones, a comparison of actual costs to esti-
mated costs, and any changes in estimated project costs or 
schedule. 
(c) LIMITATIONS.—The total amount obligated by the 
Department, including prior year appropriations, for the 
Spallation Neutron Source shall not exceed— 
(1) $1,192,700,000 for costs of construction; 
(2) $219,000,000 for other project costs; and 
(3) $1,411,700,000 for total project cost. 
§ 962. Nitrogen fixation 
The Secretary shall conduct studies on biological nitro-
gen fixation, including plant genomics research relevant to 
the development of commercial crop varieties with enhanced 
nitrogen fixation efficiency and ability.
381 
Subtitle G—Energy and Environment 
§ 966. Waste reduction and use of alternatives 
(a) GRANT AUTHORITY.—The Secretary may make a 
single grant to a qualified institution to examine burning 
post-consumer carpet in cement kilns as an alternative en-
ergy source. The purposes of the grant shall include deter-
mining— 
(1) how post-consumer carpet can be burned 
without disrupting kiln operations; 
(2) the extent to which overall kiln emissions 
may be reduced; 
(3) the emissions of air pollutants and other rel-
evant environmental impacts; and 
(4) how this process provides benefits to both ce-
ment kiln operations and carpet suppliers. 
(b) QUALIFIED INSTITUTION.—For the purposes of 
subsection (a), a qualified institution is an institution of 
higher education with demonstrated expertise in the fields 
of fiber recycling and logistical modeling of carpet waste 
collection and preparation. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary for carrying 
out this section $500,000. 
§ 967. Report on fuel cell test center 
(a) REPORT.—Not later than 1 year after the date of 
enactment of this Act, the Secretary shall transmit to Con-
382 
gress a report on the results of a study of the establishment 
of a test center for next-generation fuel cells at an institu-
tion of higher education that has available a continuous 
source of hydrogen and access to the electric transmission 
grid. Such report shall include a conceptual design for such 
test center and a projection of the costs of establishing the 
test center. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary for carrying 
out this section $500,000. 
§ 968. Arctic Engineering Research Center 
(a) IN GENERAL.—The Secretary of Energy (referred 
to in this section as the ‘‘Secretary’’) in consultation with 
the Secretary of Transportation and the United States Arc-
tic Research Commission shall provide annual grants to a 
university located adjacent to the Arctic Energy Office of 
the Department of Energy, to establish and operate a uni-
versity research center to be headquartered in Fairbanks 
and to be known as the ‘‘Arctic Engineering Research Cen-
ter’’ (referred to in this section as the ‘‘Center’’). 
(b) PURPOSE.—The purpose of the Center shall be to 
conduct research on, and develop improved methods of, con-
struction and use of materials to improve the overall per-
formance of roads, bridges, residential, commercial, and in-
383 
dustrial structures, and other infrastructure in the Arctic 
region, with an emphasis on developing— 
(1) new construction techniques for roads, 
bridges, rail, and related transportation infrastruc-
ture and residential, commercial, and industrial in-
frastructure that are capable of withstanding the Arc-
tic environment and using limited energy resources as 
efficiently as possible; 
(2) technologies and procedures for increasing 
road, bridge, rail, and related transportation infra-
structure and residential, commercial, and industrial 
infrastructure safety, reliability, and integrity in the 
Arctic region; 
(3) new materials and improving the perform-
ance and energy efficiency of existing materials for 
the construction of roads, bridges, rail, and related 
transportation infrastructure and residential, com-
mercial, and industrial infrastructure in the Arctic 
region; and 
(4) recommendations for new local, regional, and 
State permitting and building codes to ensure trans-
portation and building safety and efficient energy use 
when constructing, using, and occupying such infra-
structure in the Arctic region. 
(c) OBJECTIVES.—The Center shall carry out—
384 
(1) basic and applied research in the subjects de-
scribed in subsection (b), the products of which shall 
be judged by peers or other experts in the field to ad-
vance the body of knowledge in road, bridge, rail, and 
infrastructure engineering in the Arctic region; and 
(2) an ongoing program of technology transfer 
that makes research results available to potential 
users in a form that can be implemented. 
(d) AMOUNT OF GRANT.—For each of fiscal years 2005 
through 2010, the Secretary shall provide a grant in the 
amount of $3,000,000 to the institution specified in sub-
section (a) to carry out this section. 
(e) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to carry out this section 
$3,000,000 for each of fiscal years 2005 through 2010. 
§ 970. Western Michigan demonstration project 
The Administrator of the Environmental Protection 
Agency, in consultation with the State of Michigan and af-
fected local officials, shall conduct a demonstration project 
to address the effect of transported ozone and ozone precur-
sors in Southwestern Michigan. The demonstration pro-
gram shall address projected nonattainment areas in South-
western Michigan that include counties with design values 
for ozone of less than .095 based on years 2000 to 2002 
or the most current 3-year period of air quality data. The
385 
Administrator shall assess any difficulties such areas may 
experience in meeting the 8 hour national ambient air qual-
ity standard for ozone due to the effect of transported ozone 
or ozone precursors into the areas. The Administrator shall 
work with State and local officials to determine the extent 
of ozone and ozone precursor transport, to assess alter-
natives to achieve compliance with the 8 hour standard 
apart from local controls, and to determine the timeframe 
in which such compliance could take place. The Adminis-
trator shall complete this demonstration project no later 
than 2 years after the date of enactment of this section and 
shall not impose any requirement or sanction that might 
otherwise apply during the pendency of the demonstration 
project. 
§ 971. Low-cost hydrogen propulsion and infrastruc-
ture 
(a) PROGRAM.—The Secretary of Energy shall— 
(1) establish a program with respect to the feasi-
bility of using hydrogen propulsion in light-weight 
vehicles and the integration of the associated hydrogen 
production infrastructure using off-the-shelf compo-
nents; and 
(2) identify universities and institutions that—
386 
(A) have expertise in operating and testing 
vehicles fueled by hydrogen, methane, and other 
fuels; 
(B) have expertise in integrating off-the- 
shelf components to minimize cost; and 
(C) within two years can test a vehicle 
based on an existing commercially available 
platform with a curb weight of not less than 
2,000 pounds before modifications, that— 
(i) operates solely on hydrogen gas; 
(ii) can travel a minimum of 300 
miles under normal road conditions; and 
(iii) uses hydrogen produced from 
water using only solar energy. 
(b) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Energy 
for carrying out this section $200,000 for fiscal year 2006. 
Such sums shall remain available until expended. 
§ 972. Carbon-based fuel cell development 
(a) GRANT AUTHORITY.—The Secretary of Energy is 
authorized to make a single grant to a qualified institution 
to design and fabricate a 5-kilowatt prototype coal-based 
fuel cell with the following performance objectives: 
(1) A current density of 600 milliamps per 
square centimeter at a cell voltage of 0.8 volts.
387 
(2) An operating temperature range not to ex-
ceed 900 degrees celsius. 
(b) QUALIFIED INSTITUTION.—For the purposes of 
subsection (a), a qualified institution is a research-intensive 
institution of higher education with demonstrated expertise 
in the development of carbon-based fuel cells allowing the 
direct use of high sulfur content coal as fuel, and which 
has produced a laboratory-scale carbon-based fuel cell with 
a proven current density of 100 milliamps per square centi-
meter at a voltage of 0.6 volts. 
(c) AUTHORIZATION OF APPROPRIATIONS.—There are 
authorized to be appropriated to the Secretary of Energy 
for carrying out this section $850,000 for fiscal year 2006. 
Subtitle H—International Cooperation 
§ 981. United States-Israel cooperation 
(a) FINDINGS.—The Congress finds that— 
(1) on February 1, 1996, United States Sec-
retary of Energy Hazel R. O’Leary and Israeli Min-
ister of Energy and Infrastructure Gonen Segev 
signed the Agreement between the Department of En-
ergy of the United States of America and the Min-
istry of Energy and Infrastructure of Israel Con-
cerning Energy Cooperation, to establish a framework 
for collaboration between the United States and Israel 
in energy research and development activities;
388 
(2) the Agreement entered into force in February 
2000; 
(3) in February 2005, the Agreement was auto-
matically renewed for one additional 5-year period 
pursuant to Article X of the Agreement; and 
(4) under the Agreement, the United States and 
Israel may cooperate in energy research and develop-
ment in a variety of alternative and advanced energy 
sectors. 
(b) REPORT TO CONGRESS.—(1) The Secretary of En-
ergy shall report to the Committee on Energy and Com-
merce of the House of Representatives and the Committee 
on Energy and Natural Resources of the Senate on— 
(A) how the United States and Israel have co-
operated on energy research and development activi-
ties under the Agreement; 
(B) projects initiated pursuant to the Agreement; 
and 
(C) plans for future cooperation and joint 
projects under the Agreement. 
(2) The report shall be submitted no later than three 
months after the date of enactment of this Act. 
(c) SENSE OF CONGRESS.—It is the sense of the Con-
gress that energy cooperation between the Governments of
389 
the United States and Israel is mutually beneficial in the 
development of energy technology. 
TITLE X—DEPARTMENT OF 
ENERGY MANAGEMENT 
§ 1001. Additional Assistant Secretary position 
(a) ADDITIONAL ASSISTANT SECRETARY POSITION TO 
ENABLE IMPROVED MANAGEMENT OF NUCLEAR ENERGY 
ISSUES.— 
(1) IN GENERAL.—Section 203(a) of the Depart-
ment of Energy Organization Act (42 U.S.C. 
7133(a)) is amended by striking ‘‘six Assistant Secre-
taries’’ and inserting ‘‘7 Assistant Secretaries’’. 
(2) SENSE
OF
CONGRESS.—It is the sense of 
Congress that the leadership for departmental mis-
sions in nuclear energy should be at the Assistant 
Secretary level. 
(b) TECHNICAL AND CONFORMING AMENDMENTS.— 
(1) TITLE 5.—Section 5315 of title 5, United 
States Code, is amended by striking ‘‘Assistant Secre-
taries of Energy (6)’’ and inserting ‘‘Assistant Secre-
taries of Energy (7)’’. 
(2) DEPARTMENT
OF
ENERGY
ORGANIZATION 
ACT.—The table of contents for the Department of En-
ergy Organization Act (42 U.S.C. 7101 note) is 
amended—
390 
(A) by striking ‘‘Section 209’’ and inserting 
‘‘Sec. 209’’; 
(B) by striking ‘‘213.’’ and inserting ‘‘Sec. 
213.’’; 
(C) by striking ‘‘214.’’ and inserting ‘‘Sec. 
214.’’; 
(D) by striking ‘‘215.’’ and inserting ‘‘Sec. 
215.’’; and 
(E) by striking ‘‘216.’’ and inserting ‘‘Sec. 
216.’’. 
§ 1002. Other transactions authority 
Section 646 of the Department of Energy Organization 
Act (42 U.S.C. 7256) is amended by adding at the end the 
following: 
‘‘(g)(1) In addition to other authorities granted to the 
Secretary under law, the Secretary may enter into other 
transactions on such terms as the Secretary may deem ap-
propriate in furtherance of research, development, or dem-
onstration functions vested in the Secretary. Such other 
transactions shall not be subject to the provisions of section 
9 of the Federal Nonnuclear Energy Research and Develop-
ment Act of 1974 (42 U.S.C. 5908) or section 152 of the 
Atomic Energy Act of 1954 (42 U.S.C. 2182). 
‘‘(2)(A) The Secretary shall ensure that—
391 
‘‘(i) to the maximum extent the Secretary deter-
mines practicable, no transaction entered into under 
paragraph (1) provides for research, development, or 
demonstration that duplicates research, development, 
or demonstration being conducted under existing 
projects carried out by the Department; 
‘‘(ii) to the extent the Secretary determines prac-
ticable, the funds provided by the Government under 
a transaction authorized by paragraph (1) do not ex-
ceed the total amount provided by other parties to the 
transaction; and 
‘‘(iii) to the extent the Secretary determines 
practicable, competitive, merit-based selection proce-
dures shall be used when entering into transactions 
under paragraph (1). 
‘‘(B) A transaction authorized by paragraph (1) may 
be used for a research, development, or demonstration 
project only if the Secretary makes a written determination 
that the use of a standard contract, grant, or cooperative 
agreement for the project is not feasible or appropriate. 
‘‘(3)(A) The Secretary shall protect from disclosure, in-
cluding disclosure under section 552 of title 5, United 
States Code, for up to 5 years after the date the information 
is received by the Secretary—
392 
‘‘(i) a proposal, proposal abstract, and sup-
porting documents submitted to the Department in a 
competitive or noncompetitive process having the po-
tential for resulting in an award under paragraph 
(1) to the party submitting the information; and 
‘‘(ii) a business plan and technical information 
relating to a transaction authorized by paragraph (1) 
submitted to the Department as confidential business 
information. 
‘‘(B) The Secretary may protect from disclosure, for 
up to 5 years after the information was developed, any in-
formation developed pursuant to a transaction under para-
graph (1) which developed information is of a character 
that it would be protected from disclosure under section 
552(b)(4) of title 5, United States Code, if obtained from 
a person other than a Federal agency. 
‘‘(4) Not later than 90 days after the date of enactment 
of this subsection, the Secretary shall prescribe guidelines 
for using other transactions authorized by paragraph (1). 
Such guidelines shall be published in the Federal Register 
for public comment under rulemaking procedures of the De-
partment. 
‘‘(5) The authority of the Secretary under this sub-
section may be delegated only to an officer of the Depart-
ment who is appointed by the President by and with the
393 
advice and consent of the Senate and may not be delegated 
to any other person. 
‘‘(6)(A) Not later than September 31, 2006, the Comp-
troller General of the United States shall report to Congress 
on the Department’s use of the authorities granted under 
this section, including the ability to attract nontraditional 
government contractors and whether additional safeguards 
are needed with respect to the use of such authorities. 
‘‘(B) In this section, the term ‘nontraditional Govern-
ment contractor’ has the same meaning as the term ‘non-
traditional defense contractor’ as defined in section 845(e) 
of the National Defense Authorization Act for Fiscal Year 
1994 (Public Law 103–160; 10 U.S.C. 2371 note).’’. 
§ 1003. University collaboration 
Not later than 2 years after the date of enactment of 
this Act, the Secretary of Energy shall transmit to the Con-
gress a report that examines the feasibility of promoting 
collaborations between major universities and other colleges 
and universities in grants, contracts, and cooperative agree-
ments made by the Secretary for energy projects. For pur-
poses of this section, major universities are schools listed 
by the Carnegie Foundation as Doctoral Research Extensive 
Universities. The Secretary shall also consider providing 
incentives to increase the inclusion of small institutions of
394 
higher education, including minority-serving institutions, 
in energy grants, contracts, and cooperative agreements. 
§ 1004. Sense of Congress 
It is the sense of the Congress that— 
(1) the Secretary of Energy should develop and 
implement more stringent procurement and inventory 
controls, including controls on the purchase card pro-
gram, to prevent waste, fraud, and abuse of taxpayer 
funds by employees and contractors of the Department 
of Energy; and 
(2) the Department’s Inspector General should 
continue to closely review purchase card purchases 
and other procurement and inventory practices at the 
Department. 
TITLE XII—ELECTRICITY 
§ 1201. Short title 
This title may be cited as the ‘‘Electric Reliability Act 
of 2005’’. 
Subtitle A—Reliability Standards 
§ 1211. Electric reliability standards 
(a) IN GENERAL.—Part II of the Federal Power Act 
(16 U.S.C 824 et seq.) is amended by adding at the end 
the following: 
‘‘SEC. 215. ELECTRIC RELIABILITY. 
‘‘(a) DEFINITIONS.—For purposes of this section:
395 
‘‘(1) The term ‘bulk-power system’ means— 
‘‘(A) facilities and control systems necessary 
for operating an interconnected electric energy 
transmission network (or any portion thereof); 
and 
‘‘(B) electric energy from generation facili-
ties needed to maintain transmission system re-
liability. 
The term does not include facilities used in the local 
distribution of electric energy. 
‘‘(2) The terms ‘Electric Reliability Organiza-
tion’ and ‘ERO’ mean the organization certified by 
the Commission under subsection (c) the purpose of 
which is to establish and enforce reliability standards 
for the bulk-power system, subject to Commission re-
view. 
‘‘(3) The term ‘reliability standard’ means a re-
quirement, approved by the Commission under this 
section, to provide for reliable operation of the bulk- 
power system. The term includes requirements for the 
operation of existing bulk-power system facilities, in-
cluding cybersecurity protection, and the design of 
planned additions or modifications to such facilities 
to the extent necessary to provide for reliable oper-
ation of the bulk-power system, but the term does not
396 
include any requirement to enlarge such facilities or 
to construct new transmission capacity or generation 
capacity. 
‘‘(4) The term ‘reliable operation’ means oper-
ating the elements of the bulk-power system within 
equipment and electric system thermal, voltage, and 
stability limits so that instability, uncontrolled sepa-
ration, or cascading failures of such system will not 
occur as a result of a sudden disturbance, including 
a cybersecurity incident, or unanticipated failure of 
system elements. 
‘‘(5) The term ‘Interconnection’ means a geo-
graphic area in which the operation of bulk-power 
system components is synchronized such that the fail-
ure of 1 or more of such components may adversely 
affect the ability of the operators of other components 
within the system to maintain reliable operation of 
the facilities within their control. 
‘‘(6) The term ‘transmission organization’ means 
a Regional Transmission Organization, Independent 
System Operator, independent transmission provider, 
or other transmission organization finally approved 
by the Commission for the operation of transmission 
facilities.
397 
‘‘(7) The term ‘regional entity’ means an entity 
having enforcement authority pursuant to subsection 
(e)(4). 
‘‘(8) The term ‘cybersecurity incident’ means a 
malicious act or suspicious event that disrupts, or 
was an attempt to disrupt, the operation of those pro-
grammable electronic devices and communication net-
works including hardware, software and data that are 
essential to the reliable operation of the bulk power 
system. 
‘‘(b) JURISDICTION
AND APPLICABILITY.—(1) The 
Commission shall have jurisdiction, within the United 
States, over the ERO certified by the Commission under 
subsection (c), any regional entities, and all users, owners 
and operators of the bulk-power system, including but not 
limited to the entities described in section 201(f), for pur-
poses of approving reliability standards established under 
this section and enforcing compliance with this section. All 
users, owners and operators of the bulk-power system shall 
comply with reliability standards that take effect under this 
section. 
‘‘(2) The Commission shall issue a final rule to imple-
ment the requirements of this section not later than 180 
days after the date of enactment of this section.
398 
‘‘(c) CERTIFICATION.—Following the issuance of a 
Commission rule under subsection (b)(2), any person may 
submit an application to the Commission for certification 
as the Electric Reliability Organization. The Commission 
may certify 1 such ERO if the Commission determines that 
such ERO— 
‘‘(1) has the ability to develop and enforce, sub-
ject to subsection (e)(2), reliability standards that 
provide for an adequate level of reliability of the bulk- 
power system; and 
‘‘(2) has established rules that— 
‘‘(A) assure its independence of the users 
and owners and operators of the bulk-power sys-
tem, while assuring fair stakeholder representa-
tion in the selection of its directors and balanced 
decisionmaking in any ERO committee or subor-
dinate organizational structure; 
‘‘(B) allocate equitably reasonable dues, fees, 
and other charges among end users for all activi-
ties under this section; 
‘‘(C) provide fair and impartial procedures 
for enforcement of reliability standards through 
the imposition of penalties in accordance with 
subsection (e) (including limitations on activi-
399 
ties, functions, or operations, or other appro-
priate sanctions); 
‘‘(D) provide for reasonable notice and op-
portunity for public comment, due process, open-
ness, and balance of interests in developing reli-
ability standards and otherwise exercising its 
duties; and 
‘‘(E) provide for taking, after certification, 
appropriate steps to gain recognition in Canada 
and Mexico. 
The total amount of all dues, fees, and other charges 
collected by the ERO in each of the fiscal years 2006 
through 2015 and allocated under subparagraph (B) 
shall not exceed $50,000,000. 
‘‘(d) RELIABILITY STANDARDS.—(1) The Electric Reli-
ability Organization shall file each reliability standard or 
modification to a reliability standard that it proposes to 
be made effective under this section with the Commission. 
‘‘(2) The Commission may approve, by rule or order, 
a proposed reliability standard or modification to a reli-
ability standard if it determines that the standard is just, 
reasonable, not unduly discriminatory or preferential, and 
in the public interest. The Commission shall give due weight 
to the technical expertise of the Electric Reliability Organi-
zation with respect to the content of a proposed standard
400 
or modification to a reliability standard and to the tech-
nical expertise of a regional entity organized on an Inter-
connection-wide basis with respect to a reliability standard 
to be applicable within that Interconnection, but shall not 
defer with respect to the effect of a standard on competition. 
A proposed standard or modification shall take effect upon 
approval by the Commission. 
‘‘(3) The Electric Reliability Organization shall 
rebuttably presume that a proposal from a regional entity 
organized on an Interconnection-wide basis for a reliability 
standard or modification to a reliability standard to be ap-
plicable on an Interconnection-wide basis is just, reason-
able, and not unduly discriminatory or preferential, and 
in the public interest. 
‘‘(4) The Commission shall remand to the Electric Re-
liability Organization for further consideration a proposed 
reliability standard or a modification to a reliability stand-
ard that the Commission disapproves in whole or in part. 
‘‘(5) The Commission, upon its own motion or upon 
complaint, may order the Electric Reliability Organization 
to submit to the Commission a proposed reliability stand-
ard or a modification to a reliability standard that address-
es a specific matter if the Commission considers such a new 
or modified reliability standard appropriate to carry out 
this section.
401 
‘‘(6) The final rule adopted under subsection (b)(2) 
shall include fair processes for the identification and timely 
resolution of any conflict between a reliability standard and 
any function, rule, order, tariff, rate schedule, or agreement 
accepted, approved, or ordered by the Commission applica-
ble to a transmission organization. Such transmission orga-
nization shall continue to comply with such function, rule, 
order, tariff, rate schedule or agreement accepted approved, 
or ordered by the Commission until— 
‘‘(A) the Commission finds a conflict exists be-
tween a reliability standard and any such provision; 
‘‘(B) the Commission orders a change to such 
provision pursuant to section 206 of this part; and 
‘‘(C) the ordered change becomes effective under 
this part. 
If the Commission determines that a reliability standard 
needs to be changed as a result of such a conflict, it shall 
order the ERO to develop and file with the Commission a 
modified reliability standard under paragraph (4) or (5) 
of this subsection. 
‘‘(e) ENFORCEMENT.—(1) The ERO may impose, sub-
ject to paragraph (2), a penalty on a user or owner or oper-
ator of the bulk-power system for a violation of a reliability 
standard approved by the Commission under subsection (d) 
if the ERO, after notice and an opportunity for a hearing—
402 
‘‘(A) finds that the user or owner or operator has 
violated a reliability standard approved by the Com-
mission under subsection (d); and 
‘‘(B) files notice and the record of the proceeding 
with the Commission. 
‘‘(2) A penalty imposed under paragraph (1) may take 
effect not earlier than the 31st day after the ERO files with 
the Commission notice of the penalty and the record of pro-
ceedings. Such penalty shall be subject to review by the 
Commission, on its own motion or upon application by the 
user, owner or operator that is the subject of the penalty 
filed within 30 days after the date such notice is filed with 
the Commission. Application to the Commission for review, 
or the initiation of review by the Commission on its own 
motion, shall not operate as a stay of such penalty unless 
the Commission otherwise orders upon its own motion or 
upon application by the user, owner or operator that is the 
subject of such penalty. In any proceeding to review a pen-
alty imposed under paragraph (1), the Commission, after 
notice and opportunity for hearing (which hearing may 
consist solely of the record before the ERO and opportunity 
for the presentation of supporting reasons to affirm, modify, 
or set aside the penalty), shall by order affirm, set aside, 
reinstate, or modify the penalty, and, if appropriate, re-
403 
mand to the ERO for further proceedings. The Commission 
shall implement expedited procedures for such hearings. 
‘‘(3) On its own motion or upon complaint, the Com-
mission may order compliance with a reliability standard 
and may impose a penalty against a user or owner or oper-
ator of the bulk-power system if the Commission finds, after 
notice and opportunity for a hearing, that the user or owner 
or operator of the bulk-power system has engaged or is about 
to engage in any acts or practices that constitute or will 
constitute a violation of a reliability standard. 
‘‘(4) The Commission shall issue regulations author-
izing the ERO to enter into an agreement to delegate au-
thority to a regional entity for the purpose of proposing 
reliability standards to the ERO and enforcing reliability 
standards under paragraph (1) if— 
‘‘(A) the regional entity is governed by— 
‘‘(i) an independent board; 
‘‘(ii) a balanced stakeholder board; or 
‘‘(iii) a combination independent and bal-
anced stakeholder board. 
‘‘(B) the regional entity otherwise satisfies the 
provisions of subsection (c)(1) and (2); and 
‘‘(C) the agreement promotes effective and effi-
cient administration of bulk-power system reliability.
404 
The Commission may modify such delegation. The ERO 
and the Commission shall rebuttably presume that a pro-
posal for delegation to a regional entity organized on an 
Interconnection-wide basis promotes effective and efficient 
administration of bulk-power system reliability and should 
be approved. Such regulation may provide that the Com-
mission may assign the ERO’s authority to enforce reli-
ability standards under paragraph (1) directly to a re-
gional entity consistent with the requirements of this para-
graph. 
‘‘(5) The Commission may take such action as is nec-
essary or appropriate against the ERO or a regional entity 
to ensure compliance with a reliability standard or any 
Commission order affecting the ERO or a regional entity. 
‘‘(6) Any penalty imposed under this section shall bear 
a reasonable relation to the seriousness of the violation and 
shall take into consideration the efforts of such user, owner, 
or operator to remedy the violation in a timely manner. 
‘‘(f) CHANGES IN ELECTRIC RELIABILITY ORGANIZA-
TION RULES.—The Electric Reliability Organization shall 
file with the Commission for approval any proposed rule 
or proposed rule change, accompanied by an explanation 
of its basis and purpose. The Commission, upon its own 
motion or complaint, may propose a change to the rules 
of the ERO. A proposed rule or proposed rule change shall
405 
take effect upon a finding by the Commission, after notice 
and opportunity for comment, that the change is just, rea-
sonable, not unduly discriminatory or preferential, is in the 
public interest, and satisfies the requirements of subsection 
(c). 
‘‘(g) RELIABILITY REPORTS.—The ERO shall conduct 
periodic assessments of the reliability and adequacy of the 
bulk-power system in North America. 
‘‘(h) COORDINATION WITH CANADA AND MEXICO.— 
The President is urged to negotiate international agree-
ments with the governments of Canada and Mexico to pro-
vide for effective compliance with reliability standards and 
the effectiveness of the ERO in the United States and Can-
ada or Mexico. 
‘‘(i) SAVINGS PROVISIONS.—(1) The ERO shall have 
authority to develop and enforce compliance with reliability 
standards for only the bulk-power system. 
‘‘(2) This section does not authorize the ERO or the 
Commission to order the construction of additional genera-
tion or transmission capacity or to set and enforce compli-
ance with standards for adequacy or safety of electric facili-
ties or services. 
‘‘(3) Nothing in this section shall be construed to pre-
empt any authority of any State to take action to ensure 
the safety, adequacy, and reliability of electric service with-
406 
in that State, as long as such action is not inconsistent 
with any reliability standard, except that the State of New 
York may establish rules that result in greater reliability 
within that State, as long as such action does not result 
in lesser reliability outside the State than that provided by 
the reliability standards. 
‘‘(4) Within 90 days of the application of the Electric 
Reliability Organization or other affected party, and after 
notice and opportunity for comment, the Commission shall 
issue a final order determining whether a State action is 
inconsistent with a reliability standard, taking into consid-
eration any recommendation of the ERO. 
‘‘(5) The Commission, after consultation with the ERO 
and the State taking action, may stay the effectiveness of 
any State action, pending the Commission’s issuance of a 
final order. 
‘‘(j) REGIONAL ADVISORY BODIES.—The Commission 
shall establish a regional advisory body on the petition of 
at least 2⁄3 of the States within a region that have more 
than 1⁄2 of their electric load served within the region. A 
regional advisory body shall be composed of 1 member from 
each participating State in the region, appointed by the 
Governor of each State, and may include representatives of 
agencies, States, and provinces outside the United States. 
A regional advisory body may provide advice to the Electric
407 
Reliability Organization, a regional entity, or the Commis-
sion regarding the governance of an existing or proposed 
regional entity within the same region, whether a standard 
proposed to apply within the region is just, reasonable, not 
unduly discriminatory or preferential, and in the public 
interest, whether fees proposed to be assessed within the re-
gion are just, reasonable, not unduly discriminatory or 
preferential, and in the public interest and any other re-
sponsibilities requested by the Commission. The Commis-
sion may give deference to the advice of any such regional 
advisory body if that body is organized on an Interconnec-
tion-wide basis. 
‘‘(k) ALASKA AND HAWAII.—The provisions of this sec-
tion do not apply to Alaska or Hawaii.’’. 
(b) STATUS OF ERO.—The Electric Reliability Orga-
nization certified by the Federal Energy Regulatory Com-
mission under section 215(c) of the Federal Power Act and 
any regional entity delegated enforcement authority pursu-
ant to section 215(e)(4) of that Act are not departments, 
agencies, or instrumentalities of the United States Govern-
ment. 
(c) LIMITATION ON ANNUAL APPROPRIATIONS.—There 
is authorized to be appropriated not more than $50,000,000 
per year for fiscal years 2006 through 2015 for all activities 
under the amendment made by subsection (a).
408 
Subtitle B—Transmission Infrastructure 
Modernization 
§ 1221. Siting of interstate electric transmission facili-
ties 
(a) AMENDMENT OF FEDERAL POWER ACT.—Part II 
of the Federal Power Act is amended by adding at the end 
the following: 
‘‘SEC. 216. SITING OF INTERSTATE ELECTRIC TRANS-
MISSION FACILITIES. 
‘‘(a) DESIGNATION OF NATIONAL INTEREST ELECTRIC 
TRANSMISSION CORRIDORS.— 
‘‘(1) TRANSMISSION CONGESTION STUDY.—With-
in 1 year after the enactment of this section, and 
every 3 years thereafter, the Secretary of Energy, in 
consultation with affected States, shall conduct a 
study of electric transmission congestion. After con-
sidering alternatives and recommendations from in-
terested parties, including an opportunity for com-
ment from affected States, the Secretary shall issue a 
report, based on such study, which may designate any 
geographic area experiencing electric energy trans-
mission capacity constraints or congestion that ad-
versely affects consumers as a national interest elec-
tric transmission corridor. The Secretary shall con-
duct the study and issue the report in consultation
409 
with any appropriate regional entity referenced in 
section 215 of this Act. 
‘‘(2) CONSIDERATIONS.—In determining whether 
to designate a national interest electric transmission 
corridor referred to in paragraph (1) under this sec-
tion, the Secretary may consider whether— 
‘‘(A) the economic vitality and development 
of the corridor, or the end markets served by the 
corridor, may be constrained by lack of adequate 
or reasonably priced electricity; 
‘‘(B)(i) economic growth in the corridor, or 
the end markets served by the corridor, may be 
jeopardized by reliance on limited sources of en-
ergy; and 
‘‘(ii) a diversification of supply is war-
ranted; 
‘‘(C) the energy independence of the United 
States would be served by the designation; 
‘‘(D) the designation would be in the inter-
est of national energy policy; and 
‘‘(E) the designation would enhance na-
tional defense and homeland security. 
‘‘(b) CONSTRUCTION PERMIT.—Except as provided in 
subsection (i), the Commission is authorized, after notice 
and an opportunity for hearing, to issue a permit or per-
410 
mits for the construction or modification of electric trans-
mission facilities in a national interest electric trans-
mission corridor designated by the Secretary under sub-
section (a) if the Commission finds that— 
‘‘(1)(A) a State in which the transmission facili-
ties are to be constructed or modified is without au-
thority to— 
‘‘(i) approve the siting of the facilities; or 
‘‘(ii) consider the interstate benefits expected 
to be achieved by the proposed construction or 
modification of transmission facilities in the 
State; 
‘‘(B) the applicant for a permit is a transmit-
ting utility under this Act but does not qualify to 
apply for a permit or siting approval for the pro-
posed project in a State because the applicant does 
not serve end-use customers in the State; or 
‘‘(C) a State commission or other entity that has 
authority to approve the siting of the facilities has— 
‘‘(i) withheld approval for more than 1 year 
after the filing of an application pursuant to ap-
plicable law seeking approval or 1 year after the 
designation of the relevant national interest elec-
tric transmission corridor, whichever is later; or
411 
‘‘(ii) conditioned its approval in such a 
manner that the proposed construction or modi-
fication will not significantly reduce trans-
mission congestion in interstate commerce or is 
not economically feasible; 
‘‘(2) the facilities to be authorized by the permit 
will be used for the transmission of electric energy in 
interstate commerce; 
‘‘(3) the proposed construction or modification is 
consistent with the public interest; 
‘‘(4) the proposed construction or modification 
will significantly reduce transmission congestion in 
interstate commerce and protects or benefits con-
sumers; and 
‘‘(5) the proposed construction or modification is 
consistent with sound national energy policy and will 
enhance energy independence. 
‘‘(c) PERMIT
APPLICATIONS.—Permit applications 
under subsection (b) shall be made in writing to the Com-
mission. The Commission shall issue rules setting forth the 
form of the application, the information to be contained in 
the application, and the manner of service of notice of the 
permit application upon interested persons. 
‘‘(d) COMMENTS.—In any proceeding before the Com-
mission under subsection (b), the Commission shall afford
412 
each State in which a transmission facility covered by the 
permit is or will be located, each affected Federal agency 
and Indian tribe, private property owners, and other inter-
ested persons, a reasonable opportunity to present their 
views and recommendations with respect to the need for and 
impact of a facility covered by the permit. 
‘‘(e) RIGHTS-OF-WAY.—In the case of a permit under 
subsection (b) for electric transmission facilities to be lo-
cated on property other than property owned by the United 
States or a State, if the permit holder cannot acquire by 
contract, or is unable to agree with the owner of the prop-
erty to the compensation to be paid for, the necessary right- 
of-way to construct or modify such transmission facilities, 
the permit holder may acquire the right-of-way by the exer-
cise of the right of eminent domain in the district court 
of the United States for the district in which the property 
concerned is located, or in the appropriate court of the State 
in which the property is located. The practice and proce-
dure in any action or proceeding for that purpose in the 
district court of the United States shall conform as nearly 
as may be with the practice and procedure in similar action 
or proceeding in the courts of the State where the property 
is situated.
413 
‘‘(f) STATE LAW.—Nothing in this section shall pre-
clude any person from constructing or modifying any 
transmission facility pursuant to State law. 
‘‘(g) COMPENSATION.—Any exercise of eminent do-
main authority pursuant to this section shall be considered 
a taking of private property for which just compensation 
is due. Just compensation shall be an amount equal to the 
full fair market value of the property taken on the date of 
the exercise of eminent domain authority, except that the 
compensation shall exceed fair market value if necessary to 
make the landowner whole for decreases in the value of any 
portion of the land not subject to eminent domain. Any par-
cel of land acquired by eminent domain under this sub-
section shall be transferred back to the owner from whom 
it was acquired (or his heirs or assigns) if the land is not 
used for the construction or modification of electric trans-
mission facilities within a reasonable period of time after 
the acquisition. Other than construction, modification, op-
eration, or maintenance of electric transmission facilities 
and related facilities, property acquired under subsection 
(e) may not be used for any purpose (including use for any 
heritage area, recreational trail, or park) without the con-
sent of the owner of the parcel from whom the property was 
acquired (or the owner’s heirs or assigns).
414 
‘‘(h) COORDINATION OF FEDERAL AUTHORIZATIONS 
FOR TRANSMISSION AND DISTRIBUTION FACILITIES.— 
‘‘(1) LEAD AGENCY.—If an applicant, or pro-
spective applicant, for a Federal authorization related 
to an electric transmission or distribution facility so 
requests, the Department of Energy (DOE) shall act 
as the lead agency for purposes of coordinating all 
applicable Federal authorizations and related envi-
ronmental reviews of the facility. For purposes of this 
subsection, the term ‘Federal authorization’ means 
any authorization required under Federal law in 
order to site a transmission or distribution facility, 
including but not limited to such permits, special use 
authorizations, certifications, opinions, or other ap-
provals as may be required, whether issued by a Fed-
eral or a State agency. To the maximum extent prac-
ticable under applicable Federal law, the Secretary of 
Energy shall coordinate this Federal authorization 
and review process with any Indian tribes, multi- 
State entities, and State agencies that are responsible 
for conducting any separate permitting and environ-
mental reviews of the facility, to ensure timely and ef-
ficient review and permit decisions. 
‘‘(2) AUTHORITY TO SET DEADLINES.—As lead 
agency, the Department of Energy, in consultation
415 
with agencies responsible for Federal authorizations 
and, as appropriate, with Indian tribes, multi-State 
entities, and State agencies that are willing to coordi-
nate their own separate permitting and environ-
mental reviews with the Federal authorization and 
environmental reviews, shall establish prompt and 
binding intermediate milestones and ultimate dead-
lines for the review of, and Federal authorization de-
cisions relating to, the proposed facility. The Sec-
retary of Energy shall ensure that once an applica-
tion has been submitted with such data as the Sec-
retary considers necessary, all permit decisions and 
related environmental reviews under all applicable 
Federal laws shall be completed within 1 year or, if 
a requirement of another provision of Federal law 
makes this impossible, as soon thereafter as is prac-
ticable. The Secretary of Energy also shall provide an 
expeditious pre-application mechanism for prospec-
tive applicants to confer with the agencies involved to 
have each such agency determine and communicate to 
the prospective applicant within 60 days of when the 
prospective applicant submits a request for such in-
formation concerning— 
‘‘(A) the likelihood of approval for a poten-
tial facility; and
416 
‘‘(B) key issues of concern to the agencies 
and public. 
‘‘(3) CONSOLIDATED
ENVIRONMENTAL
REVIEW 
AND RECORD OF DECISION.—As lead agency head, the 
Secretary of Energy, in consultation with the affected 
agencies, shall prepare a single environmental review 
document, which shall be used as the basis for all de-
cisions on the proposed project under Federal law. 
The document may be an environmental assessment 
or environmental impact statement under the Na-
tional Environmental Policy Act of 1969 if war-
ranted, or such other form of analysis as may be war-
ranted. The Secretary of Energy and the heads of 
other agencies shall streamline the review and permit-
ting of transmission and distribution facilities within 
corridors designated under section 503 of the Federal 
Land Policy and Management Act (43 U.S.C. 1763) 
by fully taking into account prior analyses and deci-
sions relating to the corridors. Such document shall 
include consideration by the relevant agencies of any 
applicable criteria or other matters as required under 
applicable laws. 
‘‘(4) APPEALS.—In the event that any agency 
has denied a Federal authorization required for a 
transmission or distribution facility, or has failed to
417 
act by the deadline established by the Secretary pur-
suant to this section for deciding whether to issue the 
authorization, the applicant or any State in which 
the facility would be located may file an appeal with 
the Secretary, who shall, in consultation with the af-
fected agency, review the denial or take action on the 
pending application. Based on the overall record and 
in consultation with the affected agency, the Secretary 
may then either issue the necessary authorization 
with any appropriate conditions, or deny the applica-
tion. The Secretary shall issue a decision within 90 
days of the filing of the appeal. In making a decision 
under this paragraph, the Secretary shall comply 
with applicable requirements of Federal law, includ-
ing any requirements of the Endangered Species Act, 
the Clean Water Act, the National Forest Manage-
ment Act, the National Environmental Policy Act of 
1969, and the Federal Land Policy and Management 
Act. 
‘‘(5) CONFORMING
REGULATIONS
AND
MEMO-
RANDA
OF
UNDERSTANDING.—Not later than 18 
months after the date of enactment of this section, the 
Secretary of Energy shall issue any regulations nec-
essary to implement this subsection. Not later than 1 
year after the date of enactment of this section, the
418 
Secretary and the heads of all Federal agencies with 
authority to issue Federal authorizations shall enter 
into Memoranda of Understanding to ensure the time-
ly and coordinated review and permitting of elec-
tricity transmission and distribution facilities. The 
head of each Federal agency with authority to issue 
a Federal authorization shall designate a senior offi-
cial responsible for, and dedicate sufficient other staff 
and resources to ensure, full implementation of the 
DOE regulations and any Memoranda. Interested In-
dian tribes, multi-State entities, and State agencies 
may enter such Memoranda of Understanding. 
‘‘(6) DURATION AND RENEWAL.—Each Federal 
land use authorization for an electricity transmission 
or distribution facility shall be issued— 
‘‘(A) for a duration, as determined by the 
Secretary of Energy, commensurate with the an-
ticipated use of the facility, and 
‘‘(B) with appropriate authority to manage 
the right-of-way for reliability and environ-
mental protection. 
Upon the expiration of any such authorization (in-
cluding an authorization issued prior to enactment of 
this section), the authorization shall be reviewed for 
renewal taking fully into account reliance on such
419 
electricity infrastructure, recognizing its importance 
for public health, safety and economic welfare and as 
a legitimate use of Federal lands. 
‘‘(7) MAINTAINING AND ENHANCING THE TRANS-
MISSION INFRASTRUCTURE.—In exercising the respon-
sibilities under this section, the Secretary of Energy 
shall consult regularly with the Federal Energy Regu-
latory Commission (FERC), FERC-approved electric 
reliability organizations (including related regional 
entities), and FERC-approved Regional Transmission 
Organizations and Independent System Operators. 
‘‘(i) INTERSTATE COMPACTS.—The consent of Congress 
is hereby given for 3 or more contiguous States to enter 
into an interstate compact, subject to approval by Congress, 
establishing regional transmission siting agencies to facili-
tate siting of future electric energy transmission facilities 
within such States and to carry out the electric energy 
transmission siting responsibilities of such States. The Sec-
retary of Energy may provide technical assistance to re-
gional transmission siting agencies established under this 
subsection. Such regional transmission siting agencies shall 
have the authority to review, certify, and permit siting of 
transmission facilities, including facilities in national in-
terest electric transmission corridors (other than facilities 
on property owned by the United States). The Commission
420 
shall have no authority to issue a permit for the construc-
tion or modification of electric transmission facilities with-
in a State that is a party to a compact, unless the members 
of a compact are in disagreement and the Secretary makes, 
after notice and an opportunity for a hearing, the finding 
described in subsection (b)(1)(C). 
‘‘(j) SAVINGS CLAUSE.—Nothing in this section shall 
be construed to affect any requirement of the environmental 
laws of the United States, including, but not limited to, 
the National Environmental Policy Act of 1969. Subsection 
(h)(4) of this section shall not apply to any Congression-
ally-designated components of the National Wilderness 
Preservation System, the National Wild and Scenic Rivers 
System, or the National Park system (including National 
Monuments therein). 
‘‘(k) ERCOT.—This section shall not apply within the 
area referred to in section 212(k)(2)(A).’’. 
(b) REPORTS
TO CONGRESS
ON CORRIDORS
AND 
RIGHTS OF WAY ON FEDERAL LANDS.—The Secretary of 
the Interior, the Secretary of Energy, the Secretary of Agri-
culture, and the Chairman of the Council on Environ-
mental Quality shall, within 90 days of the date of enact-
ment of this subsection, submit a joint report to Congress 
identifying each of the following:
421 
(1) All existing designated transmission and dis-
tribution corridors on Federal land and the status of 
work related to proposed transmission and distribu-
tion corridor designations under Title V of the Fed-
eral Land Policy and Management Act (43 U.S.C. 
1761 et. Seq.), the schedule for completing such work, 
any impediments to completing the work, and steps 
that Congress could take to expedite the process. 
(2) The number of pending applications to locate 
transmission and distribution facilities on Federal 
lands, key information relating to each such facility, 
how long each application has been pending, the 
schedule for issuing a timely decision as to each facil-
ity, and progress in incorporating existing and new 
such rights-of-way into relevant land use and resource 
management plans or their equivalent. 
(3) The number of existing transmission and dis-
tribution rights-of-way on Federal lands that will 
come up for renewal within the following 5, 10, and 
15 year periods, and a description of how the Secre-
taries plan to manage such renewals. 
§ 1222. Third-party finance 
(a) EXISTING FACILITIES.—The Secretary of Energy 
(hereinafter in this section referred to as the ‘‘Secretary’’), 
acting through the Administrator of the Western Area
422 
Power Administration (hereinafter in this section referred 
to as ‘‘WAPA’’), or through the Administrator of the South-
western Power Administration (hereinafter in this section 
referred to as ‘‘SWPA’’), or both, may design, develop, con-
struct, operate, maintain, or own, or participate with other 
entities in designing, developing, constructing, operating, 
maintaining, or owning, an electric power transmission fa-
cility and related facilities (‘‘Project’’) needed to upgrade 
existing transmission facilities owned by SWPA or WAPA 
if the Secretary of Energy, in consultation with the applica-
ble Administrator, determines that the proposed Project— 
(1)(A) is located in a national interest electric 
transmission corridor designated under section 216(a) 
of the Federal Power Act and will reduce congestion 
of electric transmission in interstate commerce; or 
(B) is necessary to accommodate an actual or 
projected increase in demand for electric transmission 
capacity; 
(2) is consistent with— 
(A) transmission needs identified, in a 
transmission expansion plan or otherwise, by the 
appropriate Regional Transmission Organiza-
tion or Independent System Operator (as defined 
in the Federal Power Act), if any, or approved 
regional reliability organization; and
423 
(B) efficient and reliable operation of the 
transmission grid; and 
(3) would be operated in conformance with pru-
dent utility practice. 
(b) NEW FACILITIES.—The Secretary, acting through 
WAPA or SWPA, or both, may design, develop, construct, 
operate, maintain, or own, or participate with other enti-
ties in designing, developing, constructing, operating, 
maintaining, or owning, a new electric power transmission 
facility and related facilities (‘‘Project’’) located within any 
State in which WAPA or SWPA operates if the Secretary, 
in consultation with the applicable Administrator, deter-
mines that the proposed Project— 
(1)(A) is located in an area designated under 
section 216(a) of the Federal Power Act and will re-
duce congestion of electric transmission in interstate 
commerce; or 
(B) is necessary to accommodate an actual or 
projected increase in demand for electric transmission 
capacity; 
(2) is consistent with— 
(A) transmission needs identified, in a 
transmission expansion plan or otherwise, by the 
appropriate Regional Transmission Organiza-
424 
tion or Independent System Operator, if any, or 
approved regional reliability organization; and 
(B) efficient and reliable operation of the 
transmission grid; 
(3) will be operated in conformance with pru-
dent utility practice; 
(4) will be operated by, or in conformance with 
the rules of, the appropriate (A) Regional Trans-
mission Organization or Independent System Oper-
ator, if any, or (B) if such an organization does not 
exist, regional reliability organization; and 
(5) will not duplicate the functions of existing 
transmission facilities or proposed facilities which are 
the subject of ongoing or approved siting and related 
permitting proceedings. 
(c) OTHER FUNDS.— 
(1) IN
GENERAL.—In carrying out a Project 
under subsection (a) or (b), the Secretary may accept 
and use funds contributed by another entity for the 
purpose of carrying out the Project. 
(2) AVAILABILITY.—The contributed funds shall 
be available for expenditure for the purpose of car-
rying out the Project— 
(A) without fiscal year limitation; and
425 
(B) as if the funds had been appropriated 
specifically for that Project. 
(3) ALLOCATION OF COSTS.—In carrying out a 
Project under subsection (a) or (b), any costs of the 
Project not paid for by contributions from another en-
tity shall be collected through rates charged to cus-
tomers using the new transmission capability pro-
vided by the Project and allocated equitably among 
these project beneficiaries using the new transmission 
capability. 
(d) RELATIONSHIP TO OTHER LAWS.—Nothing in this 
section affects any requirement of— 
(1) any Federal environmental law, including 
the National Environmental Policy Act of 1969 (42 
U.S.C. 4321 et seq.); 
(2) any Federal or State law relating to the 
siting of energy facilities; or 
(3) any existing authorizing statutes. 
(e) SAVINGS CLAUSE.—Nothing in this section shall 
constrain or restrict an Administrator in the utilization of 
other authority delegated to the Administrator of WAPA or 
SWPA. 
(f) SECRETARIAL DETERMINATIONS.—Any determina-
tion made pursuant to subsections (a) or (b) shall be based 
on findings by the Secretary using the best available data.
426 
(g) MAXIMUM FUNDING AMOUNT.—The Secretary shall 
not accept and use more than $100,000,000 under sub-
section (c)(1) for the period encompassing fiscal years 2006 
through 2015. 
§ 1223. Transmission system monitoring 
Within 6 months after the date of enactment of this 
Act, the Secretary of Energy and the Federal Energy Regu-
latory Commission shall study and report to Congress on 
the steps which must be taken to establish a system to make 
available to all transmission system owners and Regional 
Transmission Organizations (as defined in the Federal 
Power Act) within the Eastern and Western Interconnec-
tions real-time information on the functional status of all 
transmission lines within such Interconnections. In such 
study, the Commission shall assess technical means for im-
plementing such transmission information system and 
identify the steps the Commission or Congress must take 
to require the implementation of such system. 
§ 1224. Advanced transmission technologies 
(a) AUTHORITY.—The Federal Energy Regulatory 
Commission, in the exercise of its authorities under the Fed-
eral Power Act and the Public Utility Regulatory Policies 
Act of 1978, shall encourage the deployment of advanced 
transmission technologies.
427 
(b) DEFINITION.—For the purposes of this section, the 
term ‘‘advanced transmission technologies’’ means tech-
nologies that increase the capacity, efficiency, or reliability 
of existing or new transmission facilities, including, but not 
limited to— 
(1) high-temperature lines (including super-
conducting cables); 
(2) underground cables; 
(3) advanced conductor technology (including 
advanced composite conductors, high-temperature low- 
sag conductors, and fiber optic temperature sensing 
conductors); 
(4) high-capacity ceramic electric wire, connec-
tors, and insulators; 
(5) optimized transmission line configurations 
(including multiple phased transmission lines); 
(6) modular equipment; 
(7) wireless power transmission; 
(8) ultra-high voltage lines; 
(9) high-voltage DC technology; 
(10) flexible AC transmission systems; 
(11) energy storage devices (including pumped 
hydro, compressed air, superconducting magnetic en-
ergy storage, flywheels, and batteries); 
(12) controllable load;
428 
(13) distributed generation (including PV, fuel 
cells, microturbines); 
(14) enhanced power device monitoring; 
(15) direct system state sensors; 
(16) fiber optic technologies; 
(17) power electronics and related software (in-
cluding real time monitoring and analytical soft-
ware); and 
(18) any other technologies the Commission con-
siders appropriate. 
(c) OBSOLETE OR IMPRACTICABLE TECHNOLOGIES.— 
The Commission is authorized to cease encouraging the de-
ployment of any technology described in this section on a 
finding that such technology has been rendered obsolete or 
otherwise impracticable to deploy. 
§ 1225. Electric transmission and distribution pro-
grams 
(a) ELECTRIC
TRANSMISSION
AND
DISTRIBUTION 
PROGRAM.—The Secretary of Energy (hereinafter in this 
section referred to as the ‘‘Secretary’’) acting through the 
Director of the Office of Electric Transmission and Dis-
tribution shall establish a comprehensive research, develop-
ment, demonstration and commercial application program 
to promote improved reliability and efficiency of electrical
429 
transmission and distribution systems. This program shall 
include— 
(1) advanced energy delivery and storage tech-
nologies, materials, and systems, including new trans-
mission technologies, such as flexible alternating cur-
rent transmission systems, composite conductor mate-
rials and other technologies that enhance reliability, 
operational flexibility, or power-carrying capability; 
(2) advanced grid reliability and efficiency tech-
nology development; 
(3) technologies contributing to significant load 
reductions; 
(4) advanced metering, load management, and 
control technologies; 
(5) technologies to enhance existing grid compo-
nents; 
(6) the development and use of high-temperature 
superconductors to— 
(A) enhance the reliability, operational 
flexibility, or power-carrying capability of elec-
tric transmission or distribution systems; or 
(B) increase the efficiency of electric energy 
generation, transmission, distribution, or storage 
systems;