407
graph (2) shall be available to the public and public 
response shall be solicited by the Secretary. 
(e) DEVELOPMENT, DEMONSTRATION, AND COMMER-
CIAL APPLICATION.—The Secretary shall carry out a de-
velopment, demonstration, and commercial application 
program for the Next Generation Lighting Initiative 
through competitively selected awards. The Secretary may 
give preference to participants of the Industry Alliance se-
lected pursuant to subsection (c). 
(f) INTELLECTUAL PROPERTY.—The Secretary may 
require, in accordance with the authorities provided in sec-
tion 202(a)(ii) of title 35, United States Code, section 152 
of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 
section 9 of the Federal Nonnuclear Energy Research and 
Development Act of 1974 (42 U.S.C. 5908), that—
(1) for any new invention resulting from activi-
ties under subsection (d)—
(A) the Industry Alliance members that 
are active participants in research, development, 
and demonstration activities related to the ad-
vanced solid-state lighting technologies that are 
the subject of this section shall be granted first 
option to negotiate with the invention owner 
nonexclusive licenses and royalties for uses of 
the invention related to solid-state lighting on
408
terms that are reasonable under the cir-
cumstances; and 
(B)(i) for 1 year after a United States pat-
ent is issued for the invention, the patent hold-
er shall not negotiate any license or royalty 
with any entity that is not a participant in the 
Industry Alliance described in subparagraph 
(A); and 
(ii) during the year described in clause (i), 
the invention owner shall negotiate nonexclusive 
licenses and royalties in good faith with any in-
terested participant in the Industry Alliance de-
scribed in subparagraph (A); and 
(2) such other terms as the Secretary deter-
mines are required to promote accelerated commer-
cialization of inventions made under the Initiative. 
(g) NATIONAL ACADEMY REVIEW.—The Secretary 
shall enter into an arrangement with the National Acad-
emy of Sciences to conduct periodic reviews of the Next 
Generation Lighting Initiative. The Academy shall review 
the research priorities, technical milestones, and plans for 
technology transfer and progress towards achieving them. 
The Secretary shall consider the results of such reviews 
in evaluating the information obtained under subsection 
(d)(2).
409
(h) DEFINITIONS.—As used in this section: 
(1) ADVANCED
SOLID-STATE
LIGHTING.—The 
term ‘‘advanced solid-state lighting’’ means a 
semiconducting device package and delivery system 
that produces white light using externally applied 
voltage. 
(2) RESEARCH.—The term ‘‘research’’ includes 
research on the technologies, materials, and manu-
facturing processes required for white light emitting 
diodes. 
(3) INDUSTRY ALLIANCE.—The term ‘‘Industry 
Alliance’’ means an entity selected by the Secretary 
under subsection (c). 
(4) WHITE LIGHT EMITTING DIODE.—The term 
‘‘white 
light 
emitting 
diode’’ 
means 
a 
semiconducting package, utilizing either organic or 
inorganic materials, that produces white light using 
externally applied voltage. 
SEC. 929. DEFINITIONS. 
For the purposes of this chapter—
(1) the term ‘‘cost-effective’’ means resulting in 
a simple payback of costs in 10 years or less; and 
(2) the term ‘‘whole-buildings approach’’ in-
cludes, on a life-cycle basis, the energy use, cost of
410
operations, and ease of repair or upgrade of a build-
ing. 
SEC. 930. AUTHORIZATION OF APPROPRIATIONS. 
The following sums are authorized to be appropriated 
to the Secretary for the purposes of carrying out this 
chapter: 
(1) For fiscal year 2006, $620,000,000, includ-
ing—
(A) $200,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $100,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $100,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 925(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(F) $4,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and
411
(G) $20,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(2) For fiscal year 2007, $700,000,000, includ-
ing—
(A) $240,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $130,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $115,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 925(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(G) $30,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928.
412
(3) For fiscal year 2008, $800,000,000, includ-
ing—
(A) $270,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $160,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $140,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 925(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(G) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(4) For fiscal year 2009, $925,000,000, includ-
ing—
413
(A) $310,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $200,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b); 
(C) $170,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(F) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
(5) For fiscal year 2010, $1,000,000,000, in-
cluding—
(A) $340,000,000 for carrying out the ve-
hicles program under section 923; 
(B) $240,000,000 for carrying out the 
buildings program under section 924, of which 
$10,000,000 shall be for the grant program 
under section 924(b);
414
(C) $190,000,000 for carrying out the in-
dustries program under section 925(a); 
(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 926; 
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 927; and 
(F) $50,000,000 for carrying out the Next 
Generation Lighting Initiative under section 
928. 
SEC. 931. LIMITATION ON USE OF FUNDS. 
None of the funds authorized to be appropriated 
under this chapter may be used for—
(1) the issuance and implementation of energy 
efficiency regulations; 
(2) the Weatherization Assistance Program 
under part A of title IV of the Energy Conservation 
and Production Act (42 U.S.C. 6861 et seq.); 
(3) the State Energy Program under part D of 
title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6321 et seq.); or 
(4) the Federal Energy Management Program 
under part 3 of title V of the National Energy Con-
servation Policy Act (42 U.S.C. 8251 et seq.).
415
CHAPTER 2—DISTRIBUTED ENERGY AND 
ELECTRIC ENERGY SYSTEMS 
SEC. 932. DISTRIBUTED ENERGY. 
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of distributed energy resources and systems reli-
ability and efficiency research, development, demonstra-
tion, and commercial application to improve the reliability 
and efficiency of distributed energy resources and systems, 
including activities described in this chapter. The pro-
grams shall address advanced energy technologies and sys-
tems and advanced grid reliability technologies. The pro-
grams shall include the integration of—
(1) renewable energy resources; 
(2) fuel cells; 
(3) combined heat and power systems; 
(4) microturbines; 
(5) advanced natural gas turbines; 
(6) advanced internal combustion engine gen-
erators; 
(7) energy storage devices; 
(8) interconnection standards, protocols, and 
equipment; 
(9) ancillary equipment for dispatch and con-
trol; and
416
(10) any other energy technologies, as appro-
priate. 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—The Secretary shall make competitive, merit-
based grants to consortia for the development of micro-
cogeneration energy technology. The consortia shall ex-
plore—
(1) the use of small-scale combined heat and 
power in residential heating appliances; or 
(2) the use of excess power to operate other ap-
pliances within the residence and supply excess gen-
erated power to the power grid. 
(c) GOALS.—
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify performance 
goals, with quantifiable 5-year cost and energy sav-
ings target levels, for distributed energy resources 
and systems, and any other such goals the Secretary 
considers appropriate.
417
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing—
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
SEC. 933. ELECTRICITY TRANSMISSION AND DISTRIBUTION 
AND ENERGY ASSURANCE. 
(a) PROGRAM.—The Secretary shall conduct a re-
search, development, demonstration, and commercial ap-
plication program on advanced control devices to improve 
the energy efficiency and reliability of the electric trans-
mission and distribution systems and to protect the Na-
tion against severe energy supply disruptions. This pro-
gram shall address, at a minimum—
(1) advanced energy delivery and storage tech-
nologies, materials, and systems, including new 
transmission technologies, such as flexible alter-
nating current transmission systems, composite con-
ductor materials, and other technologies that en-
418
hance reliability, operational flexibility, or power-car-
rying 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-tempera-
ture 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 en-
ergy generation, transmission, distribution, or 
storage systems; 
(7) integration of power systems, including sys-
tems to deliver high-quality electric power, electric 
power reliability, and combined heat and power; 
(8) supply of electricity to the power grid by 
small-scale, distributed, and residential-based power 
generators;
419
(9) the development and use of advanced grid 
design, operation, and planning tools; 
(10) any other infrastructure technologies, as 
appropriate; and 
(11) technology transfer and education. 
(b) GOALS.—
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify performance 
goals, with quantifiable 5-year cost and energy sav-
ings target levels, for electricity transmission and 
distribution and energy assurance, and any other 
such goals the Secretary considers appropriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing—
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
420
pared to the baselines transmitted under para-
graph (1); and 
(B) any amendments to such goals. 
(c) HIGH VOLTAGE TRANSMISSION LINES.—As part 
of the program described in subsection (a), the Secretary 
shall award a grant to a university research program to 
design and test, in consultation with the Tennessee Valley 
Authority, state-of-the-art optimization techniques for 
power flow through existing high voltage transmission 
lines. 
SEC. 933A. ADVANCED PORTABLE POWER DEVICES. 
(a) PROGRAM.—The Secretary shall—
(1) establish a research, development, and dem-
onstration program to develop working models of 
small scale portable power devices; and 
(2) to the fullest extent practicable, identify and 
utilize the resources of universities that have shown 
expertise with respect to advanced portable power 
devices for either civilian or military use. 
(b) ORGANIZATION.—The universities identified and 
utilized under subsection (a)(2) are authorized to establish 
an organization to promote small scale portable power de-
vices. 
(c) DEFINITION.—For purposes of this section, the 
term ‘‘small scale portable power device’’ means a field
421
deployable portable mechanical or electromechanical device 
that can be used for applications such as communications, 
computation, mobility enhancement, weapons systems, op-
tical devices, cooling, sensors, medical devices and active 
biological agent detection systems. 
SEC. 934. AUTHORIZATION OF APPROPRIATIONS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for the purposes 
of carrying out this chapter: 
(1) For fiscal year 2006, $220,000,000. 
(2) For fiscal year 2007, $240,000,000. 
(3) For fiscal year 2008, $250,000,000. 
(4) For fiscal year 2009, $265,000,000. 
(5) For fiscal year 2010, $275,000,000. 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—From the amounts authorized under subsection 
(a), $20,000,000 for each of fiscal years 2006 and 2007 
are authorized for activities under section 932(b). 
(c) ELECTRICITY TRANSMISSION AND DISTRIBUTION 
AND ENERGY ASSURANCE.—From the amounts author-
ized under subsection (a), the following sums are author-
ized for activities under section 933: 
(1) For fiscal year 2006, $130,000,000, of 
which $2,000,000 shall be for the program under 
section 933(c).
422
(2) For fiscal year 2007, $140,000,000. 
(3) For fiscal year 2008, $150,000,000. 
(4) For fiscal year 2009, $160,000,000. 
(5) For fiscal year 2010, $165,000,000. 
Subtitle D—Renewable Energy 
SEC. 935. FINDINGS. 
Congress makes the following findings: 
(1) Renewable energy is a growth industry 
around the world. However, the United States has 
not been investing as heavily as other countries, and 
is losing market share. 
(2) Since 1996, the United States has lost sig-
nificant market share in the solar industry, dropping 
from 44 percent of the world market to 13 percent 
in 2003. 
(3) 
In 
2003, 
Japan 
spent 
more 
than 
$200,000,000 on solar research, development, dem-
onstration, and commercial application and other in-
centives, 
and 
Germany 
provided 
more 
than 
$750,000,000 in low cost financing for solar photo-
voltaic projects. This compares to United States 
Government spending of $139,000,000 in 2003 for 
research, development, demonstration, and commer-
cial application and other incentives.
423
(4) Germany and Japan each had domestic 
photovoltaic industries that employed more than 
10,000 people in 2003, while in the same year the 
United States photovoltaics industry employed only 
2,000 people. 
(5) The United States is becoming increasingly 
dependent on imported energy. 
(6) The high cost of fossil fuels is hurting the 
United States economy. 
(7) Small reductions in peak demand can result 
in very large reductions in price, according to energy 
market experts. 
(8) Although the United States has only 2 per-
cent of the world’s oil reserves and 3 percent of the 
world’s natural gas reserves, our Nation’s renewable 
energy resources are vast and largely untapped. 
(9) Renewable energy can reduce the demand 
for imported energy, reducing costs and decreasing 
the variability of energy prices. 
(10) By using domestic renewable energy re-
sources, the United States can reduce the amount of 
money sent into unstable regions of the world and 
keep it in the United States. 
(11) By supporting renewable energy research 
and development, and funding demonstration and
424
commercial application programs for renewable en-
ergy, the United States can create an export indus-
try and improve the balance of trade. 
(12) Renewable energy can significantly reduce 
the environmental impacts of energy production. 
SEC. 936. DEFINITIONS. 
For purposes of this subtitle: 
(1) BIOBASED PRODUCT.—The term ‘‘biobased 
product’’ means a product determined by the Sec-
retary to be a commercial or industrial product 
(other than food or feed) that is—
(A) composed, in whole or in significant 
part, of—
(i) biological products; 
(ii) renewable domestic agricultural 
materials (including plant, animal, and 
marine materials); or 
(iii) forestry materials; and 
(B) produced in connection with the con-
version of biomass to energy or fuel. 
(2) CELLULOSIC
BIOMASS.—The term ‘‘cel-
lulosic 
biomass’’ 
means 
a 
crop 
containing 
lignocellulose or hemicellulose, including barley 
grain, grapeseed, forest thinnings, rice bran, rice 
hulls, rice straw, soybean matter, sugarcane bagasse,
425
and any crop grown specifically for the purpose of 
producing cellulosic feedstocks. 
SEC. 937. PROGRAMS. 
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of renewable energy research, development, dem-
onstration, and commercial application, including activi-
ties described in this subtitle. Such programs shall be fo-
cused on the following objectives: 
(1) Increasing the conversion efficiency of all 
forms of renewable energy through improved tech-
nologies. 
(2) Decreasing the cost of renewable energy 
generation and delivery. 
(3) Promoting the diversity of the energy sup-
ply. 
(4) Decreasing the Nation’s dependence on for-
eign energy supplies. 
(5) Improving United States energy security. 
(6) Decreasing the environmental impact of en-
ergy-related activities. 
(7) Increasing the export of renewable genera-
tion equipment from the United States. 
(b) GOALS.—
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section