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(4) include an assessment of the modifications
that would be required to convert compressed natural
gas vehicle engines to engines that use hythane as
fuel.
(d) GRANTS
FOR REPORT COMPLETION.—The Sec-
retary may use such sums as are available to the Secretary
to provide, to 1 or more colleges or universities selected by
the Secretary, grants for use in carrying out research to
assist the Secretary in preparing the reports required to
be submitted under subsection (a).
SEC. 1333. FINAL ACTION ON REFUNDS FOR EXCESSIVE
CHARGES.
(a) FINDINGS.—Congress finds that—
(1) The state of California experienced an energy
crisis;
(2) FERC issued an order requiring a refund of
the portion of charges on the sale of electric energy
that was unjust or unreasonable during that crisis;
(3) As of the date of enactment of this act, none
of the refunds ordered to date have been received by
the state of California; and
(4) the Commission has ruled that the state of
California is entitled to approximately $3 billion in
refunds; the state of California maintains that that
$8.9 billion in refunds is owed.
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(b) FERC shall—
(1) seek to conclude its investigation into the un-
just or unreasonable charges incurred by California
during the 2000–2001 electricity crisis as soon as pos-
sible;
(2) seek to ensure that refunds the Commission
determines are owed to the State of California are
paid to the state of California; and
(3) submit to Congress a report by December 31,
2005 describing the actions taken by the Commission
to date under this section and timetables for further
actions.
SEC. 1334. FUEL CELL AND HYDROGEN TECHNOLOGY
STUDY.
(a) FINDINGS.—Congress finds that—
(1) according to the National Academy of
Sciences, ‘‘Greenhouse gases are accumulating in
Earth’s atmosphere as a result of human activities,
causing surface air temperatures and subsurface
ocean temperatures to rise . . . Human-induced
warming and associated sea level rises are expected to
continue through the 21st century.’’;
(2) in 2001, the Intergovernmental Panel on Cli-
mate Change (IPCC) concluded that the average tem-
perature of the Earth can be expected to rise between
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2.5 and 10.4 degrees Fahrenheit in this century and
‘‘there is new and stronger evidence that most of the
warming observed over the last 50 years is attrib-
utable to human activities’’;
(3) the National Academy of Sciences has stated
that ‘‘the IPCC’s conclusion that most of the observed
warming of the last 50 years is likely to have been
due to the increase of greenhouse gas concentrations
accurately reflects the current thinking of the sci-
entific community on this issue’’ and that ‘‘there is
general agreement that the observed warming is real
and particularly strong within the past twenty
years’’;
(4) a significant Federal investment toward the
development of fuel cell technologies and the transi-
tion from petroleum to hydrogen in vehicles could sig-
nificantly contribute to the reduction of carbon diox-
ide emissions by reducing fuel consumption;
(5) a massive infusion of resources and leader-
ship from the Federal Government would be needed to
create the necessary fuel cell technologies that provide
alternatives to petroleum and the more efficient use of
energy; and
(6) the Federal Government would need to com-
mit to developing, in conjunction with private indus-
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try and academia, advanced vehicle technologies and
the necessary hydrogen infrastructure to provide al-
ternatives to petroleum.
(b) STUDY.—
(1) IN GENERAL.—As soon as practicable after
the date of enactment of this Act, the Secretary shall
enter into a contract with the National Academy of
Sciences and the National Research Council to carry
out a study of fuel cell technologies that provides a
budget roadmap for the development of fuel cell tech-
nologies and the transition from petroleum to hydro-
gen in a significant percentage of the vehicles sold by
2020.
(2) REQUIREMENTS.—In carrying out the study,
the National Academy of Sciences and the National
Research Council shall—
(A) establish as a goal the maximum per-
centage practicable of vehicles that the National
Academy of Sciences and the National Research
Council determines can be fueled by hydrogen by
2020;
(B) determine the amount of Federal and
private funding required to meet the goal estab-
lished under subparagraph (A);
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(C) determine what actions are required to
meet the goal established under subparagraph
(A);
(D) examine the need for expanded and en-
hanced Federal research and development pro-
grams, changes in regulations, grant programs,
partnerships between the Federal Government
and industry, private sector investments, infra-
structure investments by the Federal Government
and industry, educational and public informa-
tion initiatives, and Federal and State tax in-
centives to meet the goal established under sub-
paragraph (A);
(E) consider whether other technologies
would be less expensive or could be more quickly
implemented than fuel cell technologies to achieve
significant reductions in carbon dioxide emis-
sions;
(F) take into account any reports relating
to fuel cell technologies and hydrogen-fueled vehi-
cles, including—
(i) the report prepared by the National
Academy of Engineering and the National
Research Council in 2004 entitled ‘‘Hydro-
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gen Economy: Opportunities, Costs, Bar-
riers, and R&D Needs’’; and
(ii) the report prepared by the U.S.
Fuel Cell Council in 2003 entitled ‘‘Fuel
Cells and Hydrogen: The Path Forward’’;
(G) consider the challenges, difficulties, and
potential barriers to meeting the goal established
under subparagraph (A); and
(H) with respect to the budget roadmap—
(i) specify the amount of funding re-
quired on an annual basis from the Federal
Government and industry to carry out the
budget roadmap; and
(ii) specify the advantages and dis-
advantages to moving toward the transition
to hydrogen in vehicles in accordance with
the timeline established by the budget road-
map.
SEC. 1335. PASSIVE SOLAR TECHNOLOGIES.
(a) DEFINITION OF PASSIVE SOLAR TECHNOLOGY.—
In this section, the term ‘‘passive solar technology’’ means
a passive solar technology, including daylighting, that—
(1) is used exclusively to avoid electricity use;
and
(2) can be metered to determine energy savings.
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(b) STUDY.—The Secretary shall conduct a study to
determine—
(1) the range of levelized costs of avoided elec-
tricity for passive solar technologies;
(2) the quantity of electricity displaced using
passive solar technologies in the United States as of
the date of enactment of this Act; and
(3) the projected energy savings from passive
solar technologies in 5, 10, 15, 20, and 25 years after
the date of enactment of this Act if—
(A) incentives comparable to the incentives
provided for electricity generation technologies
were provided for passive solar technologies; and
(B) no new incentives for passive solar tech-
nologies were provided.
(c) REPORT.—Not later than 120 days after the date
of enactment of this Act, the Secretary shall submit to Con-
gress a report that describes the results of the study under
subsection (b).
SEC. 1336. STUDY OF LINK BETWEEN ENERGY SECURITY
AND INCREASES IN VEHICLE MILES TRAV-
ELED.
(a) IN GENERAL.—The Secretary shall enter into an
arrangement with the National Academy of Sciences under
which the Academy shall conduct a study to assess the im-
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plications on energy use and efficiency of land development
patterns in the United States.
(b) SCOPE.—The study shall consider—
(1) the correlation, if any, between land develop-
ment patterns and increases in vehicle miles traveled;
(2) whether petroleum use in the transportation
sector can be reduced through changes in the design
of development patterns;
(3) the potential benefits of—
(A) information and education programs
for State and local officials (including planning
officials) on the potential for energy savings
through planning, design, development, and in-
frastructure decisions;
(B) incorporation of location efficiency
models in transportation infrastructure planning
and investments; and
(C) transportation policies and strategies to
help transportation planners manage the de-
mand for the number and length of vehicle trips,
including trips that increase the viability of
other means of travel; and
(4) such other considerations relating to the
study topic as the National Academy of Sciences finds
appropriate.
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(c) REPORT.—Not later than 2 years after the date of
enactment of this Act, the National Academy of Sciences
shall submit to the Secretary and Congress a report on the
study conducted under this section.
SEC. 1337. STUDY OF AVAILABILITY OF SKILLED WORKERS.
(a) IN GENERAL.—The Secretary shall enter into an
arrangement with the National Academy of Sciences under
which the National Academy of Sciences shall conduct a
study of the short-term and long-term availability of skilled
workers to meet the energy and mineral security require-
ments of the United States.
(b) INCLUSIONS.—The study shall include an analysis
of—
(1) the need for and availability of workers for
the oil, gas, and mineral industries;
(2) the availability of skilled labor at both entry
level and more senior levels; and
(3) recommendations for future actions needed to
meet future labor requirements.
(c) REPORT.—Not later than 2 years after the date of
enactment of this Act, the Secretary shall submit to Con-
gress a report that describes the results of the study.
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SEC. 1338. SCIENCE STUDY ON CUMULATIVE IMPACTS OF
MULTIPLE OFFSHORE LIQUEFIED NATURAL
GAS FACILITIES.
(a) IN GENERAL.—The Secretary (in consultation
with the National Oceanic Atmospheric Administration, the
Commandant of the Coast Guard, affected recreational and
commercial fishing industries and affected energy and
transportation stakeholders) shall carry out a study and
compile existing science (including studies and data) to de-
termine the risks or benefits presented by cumulative im-
pacts of multiple offshore liquefied natural gas facilities
reasonably assumed to be constructed in an area of the Gulf
of Mexico using the open-rack vaporization system.
(b) ACCURACY.—In carrying out subsection (a), the
Secretary shall verify the accuracy of available science and
develop a science-based evaluation of significant short-term
and long-term cumulative impacts, both adverse and bene-
ficial, of multiple offshore liquefied natural gas facilities
reasonably assumed to be constructed in an area of the Gulf
of Mexico using or proposing the open-rack vaporization
system on the fisheries and marine populations in the vicin-
ity of the facility.
TITLE XIV—INCENTIVES FOR
INNOVATIVE TECHNOLOGIES
SEC. 1401. DEFINITIONS.
In this title:
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(1) COMMERCIAL TECHNOLOGY.—
(A) IN GENERAL.—The term ‘‘commercial
technology’’ means a technology in general use in
the commercial marketplace.
(B) INCLUSIONS.—The term ‘‘commercial
technology’’ does not include a technology solely
by use of the technology in a demonstration
project funded by the Department.
(2) COST.—The term ‘‘cost’’ has the meaning
given the term ‘‘cost of a loan guarantee’’ within the
meaning of section 502(5)(C) of the Federal Credit
Reform Act of 1990 (2 U.S.C. 661a(5)(C)).
(3) ELIGIBLE
PROJECT.—The term ‘‘eligible
project’’ means a project described in section 1403.
(4) GUARANTEE.—
(A) IN
GENERAL.—The term ‘‘guarantee’’
has the meaning given the term ‘‘loan guar-
antee’’ in section 502 of the Federal Credit Re-
form Act of 1990 (2 U.S.C. 661a).
(B) INCLUSION.—The term ‘‘guarantee’’ in-
cludes a loan guarantee commitment (as defined
in section 502 of the Federal Credit Reform Act
of 1990 (2 U.S.C. 661a)).
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(5) OBLIGATION.—The term ‘‘obligation’’ means
the loan or other debt obligation that is guaranteed
under this section.
SEC. 1402. TERMS AND CONDITIONS.
(a) IN GENERAL.—Except for division C of Public
Law 108–324, the Secretary shall make guarantees under
this or any other Act for projects on such terms and condi-
tions as the Secretary determines, after consultation with
the Secretary of the Treasury, only in accordance with this
section.
(b) SPECIFIC APPROPRIATION OR CONTRIBUTION.—No
guarantee shall be made unless—
(1) an appropriation for the cost has been made;
or
(2) the Secretary has received from the borrower
a payment in full for the cost of the obligation and
deposited the payment into the Treasury.
(c) AMOUNT.—Unless otherwise provided by law, a
guarantee by the Secretary shall not exceed an amount
equal to 80 percent of the project cost of the facility that
is the subject of the guarantee, as estimated at the time at
which the guarantee is issued.
(d) REPAYMENT.—
(1) IN GENERAL.—No guarantee shall be made
unless the Secretary determines that there is reason-
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able prospect of repayment of the principal and inter-
est on the obligation by the borrower.
(2) AMOUNT.—No guarantee shall be made un-
less the Secretary determines that the amount of the
obligation (when combined with amounts available to
the borrower from other sources) will be sufficient to
carry out the project.
(3) SUBORDINATION.—The obligation shall be
subject to the condition that the obligation is not sub-
ordinate to other financing.
(e) INTEREST RATE.—An obligation shall bear interest
at a rate that does not exceed a level that the Secretary
determines appropriate, taking into account the prevailing
rate of interest in the private sector for similar loans and
risks.
(f) TERM.—The term of an obligation shall require full
repayment over a period not to exceed the lesser of—
(1) 30 years; or
(2) 90 percent of the projected useful life of the
physical asset to be financed by the obligation (as de-
termined by the Secretary).
(g) DEFAULTS.—
(1) PAYMENT BY SECRETARY.—
(A) IN GENERAL.—If a borrower defaults on
the obligation (as defined in regulations promul-
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gated by the Secretary and specified in the guar-
antee contract), the holder of the guarantee shall
have the right to demand payment of the unpaid
amount from the Secretary.
(B) PAYMENT REQUIRED.—Within such pe-
riod as may be specified in the guarantee or re-
lated agreements, the Secretary shall pay to the
holder of the guarantee the unpaid interest on,
and unpaid principal of the obligation as to
which the borrower has defaulted, unless the Sec-
retary finds that there was no default by the bor-
rower in the payment of interest or principal or
that the default has been remedied.
(C) FORBEARANCE.—Nothing in this sub-
section precludes any forbearance by the holder
of the obligation for the benefit of the borrower
which may be agreed upon by the parties to the
obligation and approved by the Secretary.
(2) SUBROGATION.—
(A) IN GENERAL.—If the Secretary makes a
payment under paragraph (1), the Secretary
shall be subrogated to the rights of the recipient
of the payment as specified in the guarantee or
related agreements including, where appropriate,
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the authority (notwithstanding any other provi-
sion of law) to—
(i) complete, maintain, operate, lease,
or otherwise dispose of any property ac-
quired pursuant to such guarantee or re-
lated agreements; or
(ii) permit the borrower, pursuant to
an agreement with the Secretary, to con-
tinue to pursue the purposes of the project
if the Secretary determines this to be in the
public interest.
(B) SUPERIORITY OF RIGHTS.—The rights
of the Secretary, with respect to any property ac-
quired pursuant to a guarantee or related agree-
ments, shall be superior to the rights of any other
person with respect to the property.
(C) TERMS AND CONDITIONS.—A guarantee
agreement shall include such detailed terms and
conditions as the Secretary determines appro-
priate to—
(i) protect the interests of the United
States in the case of default; and
(ii) have available all the patents and
technology necessary for any person selected,
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including the Secretary, to complete and op-
erate the project.
(3) PAYMENT OF PRINCIPAL AND INTEREST BY
SECRETARY.—With respect to any obligation guaran-
teed under this section, the Secretary may enter into
a contract to pay, and pay, holders of the obligation,
for and on behalf of the borrower, from funds appro-
priated for that purpose, the principal and interest
payments which become due and payable on the un-
paid balance of the obligation if the Secretary finds
that—
(A)(i) the borrower is unable to meet the
payments and is not in default;
(ii) it is in the public interest to permit the
borrower to continue to pursue the purposes of
the project; and
(iii) the probable net benefit to the Federal
Government in paying the principal and interest
will be greater than that which would result in
the event of a default;
(B) the amount of the payment that the
Secretary is authorized to pay shall be no great-
er than the amount of principal and interest
that the borrower is obligated to pay under the
agreement being guaranteed; and
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(C) the borrower agrees to reimburse the
Secretary for the payment (including interest)
on terms and conditions that are satisfactory to
the Secretary.
(4) ACTION BY ATTORNEY GENERAL.—
(A) NOTIFICATION.—If the borrower de-
faults on an obligation, the Secretary shall notify
the Attorney General of the default.
(B) RECOVERY.—On notification, the Attor-
ney General shall take such action as is appro-
priate to recover the unpaid principal and inter-
est due from—
(i) such assets of the defaulting bor-
rower as are associated with the obligation;
or
(ii) any other security pledged to se-
cure the obligation.
(h) FEES.—
(1) IN
GENERAL.—The Secretary shall charge
and collect fees for guarantees in amounts the Sec-
retary determines are sufficient to cover applicable
administrative expenses.
(2) AVAILABILITY.—Fees collected under this
subsection shall—
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(A) be deposited by the Secretary into the
Treasury; and
(B) remain available until expended, subject
to such other conditions as are contained in an-
nual appropriations Acts.
(i) RECORDS; AUDITS.—
(1) IN GENERAL.—A recipient of a guarantee
shall keep such records and other pertinent documents
as the Secretary shall prescribe by regulation, includ-
ing such records as the Secretary may require to fa-
cilitate an effective audit.
(2) ACCESS.—The Secretary and the Comptroller
General of the United States, or their duly authorized
representatives, shall have access, for the purpose of
audit, to the records and other pertinent documents.
(j) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees issued under this section with respect to
principal and interest.
SEC. 1403. ELIGIBLE PROJECTS.
(a) IN GENERAL.—The Secretary may make guaran-
tees under this section only for projects that—
(1) avoid, reduce, or sequester air pollutants or
anthropogenic emissions of greenhouse gases; and
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(2) employ new or significantly improved tech-
nologies as compared to commercial technologies in
service in the United States at the time the guarantee
is issued.
(b) CATEGORIES.—Projects from the following cat-
egories shall be eligible for a guarantee under this section:
(1) Renewable energy systems.
(2) Advanced fossil energy technology (including
coal gasification meeting the criteria in subsection
(d)).
(3) Hydrogen fuel cell technology for residential,
industrial or transportation applications.
(4) Advanced nuclear energy facilities.
(5) Carbon capture and sequestration practices
and technologies, including agricultural and forestry
practices that store and sequester carbon.
(6) Efficient electrical generation, transmission,
and distribution technologies.
(7) Efficient end-use energy technologies.
(8) Notwithstanding subsection (a)(2), produc-
tion facilities for fuel efficient vehicles.
(c) GASIFICATION PROJECTS.—The Secretary may
make guarantees for the following gasification projects:
(1) INTEGRATED GASIFICATION COMBINED CYCLE
PROJECTS.—Integrated gasification combined cycle
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plants meeting the emission levels under subsection
(d), including—
(A) 
projects 
for 
the 
generation 
of
electricity—
(i) for which, during the term of the
guarantee—
(I) coal, biomass, petroleum coke,
or a combination of coal, biomass, and
petroleum coke will account for at least
65 percent of annual heat input; and
(II) electricity will account for at
least 65 percent of net useful annual
energy output;
(ii) that have a design that is deter-
mined by the Secretary to be capable of ac-
commodating the equipment likely to be
necessary to capture the carbon dioxide that
would otherwise be emitted in flue gas from
the plant;
(iii) that have an assured revenue
stream that covers project capital and oper-
ating costs (including servicing all debt ob-
ligations covered by the guarantee) that is
approved by the Secretary and the relevant
State public utility commission; and
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(iv) on which construction commences
not later than the date that is 3 years after
the date of the issuance of the guarantee;
(B) a project to produce energy from coal
(of not more than 13,000 Btu/lb and mined in
the western United States) using appropriate ad-
vanced integrated gasification combined cycle
technology that minimizes and offers the poten-
tial to sequester carbon dioxide emissions and
that—
(i) may include repowering of existing
facilities;
(ii) may be built in stages;
(iii) shall have a combined output of
at least 100 megawatts;
(iv) shall be located in a western State
at an altitude greater than 4,000 feet; and
(v) shall demonstrate the ability to use
coal with an energy content of not more
than 9,000 Btu/lb;
(C) a project located in a taconite-pro-
ducing region of the United States that is enti-
tled under the law of the State in which the
plant is located to enter into a long-term con-
tract approved by a State public utility commis-
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sion to sell at least 450 megawatts of output to
a utility; and
(D) facilities that—
(i) generate 1 or more hydrogen-rich
and carbon monoxide-rich product streams
from the gasification of coal or coal waste;
and
(ii) use those streams to facilitate the
production of ultra clean premium fuels
through the Fischer-Tropsch process.
(2) INDUSTRIAL GASIFICATION PROJECTS.—Fa-
cilities that gasify coal, biomass, or petroleum coke in
any combination to produce synthesis gas for use as
a fuel or feedstock and for which electricity accounts
for less than 65 percent of the useful energy output of
the facility.
(3) 
PETROLEUM
COKE
GASIFICATION
PROJECTS.—The Secretary is encouraged to make
loan guarantees under this title available for petro-
leum coke gasification projects.
(d) EMISSION LEVELS.—In addition to any other ap-
plicable Federal or State emission limitation requirements,
a project shall attain at least—
(1) total sulfur dioxide emissions in flue gas
from the project that do not exceed 0.05 lb/mmBTU;
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(2) a 90-percent removal rate (including any
fuel pretreatment) of mercury from the coal-derived
gas, and any other fuel, combusted by the project;
(3) total nitrogen oxide emissions in the flue gas
from the project that do not exceed 0.08 lb/mmBTU;
and
(4) total particulate emissions in the flue gas
from the project that do not exceed 0.01 lb/mmBTU.
(e) QUALIFICATION OF FACILITIES RECEIVING TAX
CREDITS.—A project that receives tax credits for clean coal
technology shall not be disqualified from receiving a guar-
antee under this title.
SEC. 1404. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated such sums as
are necessary to provide the cost of guarantees under this
title.
TITLE XV—ENERGY POLICY TAX
INCENTIVES
SEC. 1500. SHORT TITLE; AMENDMENT OF 1986 CODE.
(a) SHORT TITLE.—This title may be cited as the
‘‘Energy Policy Tax Incentives Act of 2005’’.
(b) AMENDMENT OF 1986 CODE.—Except as otherwise
expressly provided, whenever in this title an amendment
or repeal is expressed in terms of an amendment to, or re-
peal of, a section or other provision, the reference shall be