I
107TH CONGRESS
1ST SESSION
H. R. 2324
To establish a balanced energy program for the United States that unlocks
the potential of renewable energy and energy efficiency, and for other
purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 26, 2001
Ms. WOOLSEY (for herself, Mr. HALL of Texas, Ms. JACKSON-LEE of Texas,
Mr. LAMPSON, Mr. MATHESON, Mr. WU, Mr. BACA, Mr. BAIRD, Mr.
BARCIA, Mr. ETHERIDGE, Mr. GORDON, Mr. HOEFFEL, Mr. HONDA, Mr.
ISRAEL, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. LARSON of Con-
necticut, Ms. LOFGREN, Mr. MOORE, Ms. RIVERS, Mr. UDALL of Colo-
rado, and Mr. WEINER) introduced the following bill; which was referred
to the Committee on Science
A BILL
To establish a balanced energy program for the United
States that unlocks the potential of renewable energy
and energy efficiency, and for other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Renewable Energy and Energy Efficiency Act of 2001’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title; table of contents.
Sec. 2. Findings.
Sec. 3. National research and development policy.
Sec. 4. Definitions.
TITLE I—RESEARCH, DEVELOPMENT, AND DEMONSTRATION
Sec. 101. Enhanced energy efficiency research, development, and demonstra-
tion.
Sec. 102. Enhanced renewable energy research, development, and demonstra-
tion.
Sec. 103. Biomass energy and related chemical research, development, and
demonstration.
Sec. 104. Assessment of renewable energy resources.
Sec. 105. Enhanced aeronautical system energy efficiency research, develop-
ment, and demonstration.
Sec. 106. Progress report.
TITLE II—COMMERCIAL APPLICATIONS
Sec. 201. Study of financing for prototype technologies.
Sec. 202. Regulatory reviews for new technologies and processes.
Sec. 203. Commercialization assistance.
Sec. 204. Education and outreach.
SEC. 2. FINDINGS.
The Congress finds that—
(1) there is a need for a robust renewable en-
ergy and energy efficiency research and development
program that provides a basis for the development,
demonstration, and deployment of new energy tech-
nologies in partnership with industry;
(2) Federal budget authority for renewable en-
ergy and energy efficiency research and development
has declined significantly since 1980; and
(3) the President’s budget request for fiscal
year 2002 makes even greater reductions in these
programs, imperiling promising technologies that
have the potential to reduce energy consumption and
increase energy efficiency.
SEC. 3. NATIONAL RESEARCH AND DEVELOPMENT POLICY.
It shall be the policy of the United States that its
research, development, demonstration, and commercial ap-
plications programs be designed to enable 20 percent of
the energy generated in the United States from stationary
sources to be generated from nonhydropower renewable
energy sources by the year 2020.
SEC. 4. DEFINITIONS.
For purposes of this Act, except as otherwise
provided—
(1) the term ‘‘biomass’’ means any organic
matter that is available on a renewable or recurring
basis, including agricultural crops and trees, wood
and wood wastes and residues, plants (including
aquatic plants), grasses, residues, fibers, animal
wastes, and municipal wastes; and
(2) the term ‘‘renewable energy source’’
means—
(A) wind;
(B) biomass;
(C) a geothermal source;
(D) a solar source;
(E) a photovoltaic source; or
(F) additional hydroelectric generation ca-
pacity achieved from increased efficiency at an
existing hydroelectric dam.
TITLE I—RESEARCH, DEVELOP-
MENT, AND DEMONSTRATION
SEC. 101. ENHANCED ENERGY EFFICIENCY RESEARCH, DE-
VELOPMENT, AND DEMONSTRATION.
(a) GOALS.—In order to achieve the goal stated in
section 3, the United States shall have a balanced energy
research, development, and demonstration program to en-
hance energy efficiency with the following goals:
(1) For energy efficiency in housing, the pro-
gram should develop technologies, housing compo-
nents, designs, and production methods that will, by
2010—
(A) reduce the time needed to move tech-
nologies to market by 50 percent, compared to
the time needed as of the date of the enactment
of this Act;
(B) reduce the monthly cost of new hous-
ing by 20 percent, compared to the cost as of
the date of the enactment of this Act;
(C) cut the environmental impact and en-
ergy use of new housing by 50 percent, com-
pared to the impact and use as of the date of
the enactment of this Act;
(D) ensure that at least 15,000,000 homes
existing as of the date of the enactment of this
Act reduce their energy use by 30 percent, com-
pared to the use as of the date of the enact-
ment of this Act; and
(E) improve durability and reduce mainte-
nance costs by 50 percent compared to the du-
rability and costs as of the date of the enact-
ment of this Act.
(2) For industrial energy efficiency, the pro-
gram should, in cooperation with the affected
industries—
(A) develop a microturbine (40 to 300 kilo-
watt) that is more than 40 percent efficient by
2006, compared to the efficiency as of the date
of the enactment of this Act;
(B) develop a microturbine that is more
than 50 percent efficient by 2010, compared to
the efficiency as of the date of the enactment
of this Act;
(C) develop advanced materials for com-
bustion systems that reduce emissions of nitro-
gen oxides by 30 to 50 percent while increasing
efficiency 5 to 10 percent by 2007, compared
to such emissions as of the date of the enact-
ment of this Act; and
(D) improve the energy intensity of the
major energy-consuming industries by at least
25 percent by 2010, compared to the energy in-
tensity as of the date of the enactment of this
Act.
(3) For transportation energy efficiency, the
program should, in cooperation with affected
industries—
(A) develop a production prototype pas-
senger automobile that has fuel economy equiv-
alent to 80 miles per gallon of gasoline by
2004;
(B) develop class 7 and 8 heavy duty
trucks and buses with ultra low emissions and
the ability to use an alternative fuel that has an
average fuel economy equivalent to—
(i) 10 miles per gallon of gasoline by
2007; and
(ii) 13 miles per gallon of gasoline by
2010;
(C) develop a production prototype of a
passenger automobile with zero equivalent emis-
sions that has an average fuel economy of 100
miles per gallon of gasoline by 2010; and
(D) improve, by 2010, the average fuel
economy of trucks—
(i) in classes 1 and 2 by 300 percent;
and
(ii) in classes 3 through 6 by 200 per-
cent,
compared to the fuel economy as of the date of
the enactment of this Act.
(b) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘alternative fuel’’ has the meaning
given that term in section 301(2) of the Energy Pol-
icy Act of 1992; and
(2) the term ‘‘major energy-consuming indus-
tries’’ means—
(A) the forest product industry;
(B) the steel industry;
(C) the aluminum industry;
(D) the metal casting industry;
(E) the chemical industry;
(F) the petroleum refining industry; and
(G) the glass-making industry.
(c) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy for carrying out activities to achieve the goals de-
scribed in subsection (a), including State and local grants
and the Federal Energy Management Program—
(1) $900,000,000 for fiscal year 2002;
(2) $950,000,000 for fiscal year 2003;
(3) $1,025,000,000 for fiscal year 2004;
(4) $1,110,000,000 for fiscal year 2005; and
(5) $1,200,000,000 for fiscal year 2006.
SEC. 102. ENHANCED RENEWABLE ENERGY RESEARCH, DE-
VELOPMENT, AND DEMONSTRATION.
(a) GOALS.—In order to achieve the goal stated in
section 3, the United States shall have a balanced energy
research, development, and demonstration program to en-
hance renewable energy with the following goals:
(1) For wind power, the program should reduce
the cost of wind electricity by 50 percent by 2006,
compared to the cost as of the date of the enactment
of this Act, so that wind power can be widely com-
petitive with fossil-fuel-based electricity in a restruc-
tured electric industry, with concentration within the
program on a variety of advanced wind turbine con-
cepts and manufacturing technologies.
(2) For photovoltaics, the programs should pur-
sue research, development, and demonstration that
would lead to photovoltaic systems prices of $3,000
per kilowatt by January 1, 2003, and $1,500 per
kilowatt by January 1, 2006. Program activities
should include assisting industry in developing man-
ufacturing technologies, giving greater attention to
balance of system issues, and expanding funda-
mental research on relevant advanced materials.
(3) For solar thermal electric systems the pro-
gram should strengthen ongoing research, develop-
ment, and demonstration combining high-efficiency
and high-temperature receivers with advanced ther-
mal storage and power cycles, with the goal of mak-
ing solar-only power (including baseload solar power)
widely competitive with fossil fuel power by 2015.
(4) For geothermal energy, the program should
continue work on hydrothermal systems, and reac-
tivate research, development, and demonstration on
advanced concepts, giving top priority to high-grade
hot dry-rock geothermal energy.
(5) For hydrogen-based energy systems, the
program should support research, development, and
demonstration on hydrogen-using and hydrogen-pro-
ducing technologies. The program should also co-
ordinate hydrogen-using technology development
with proton exchange membrane fuel cell vehicle de-
velopment activities under the enhanced energy effi-
ciency program described in section 101.
(6) For hydropower, the program should pro-
vide a new generation of turbine technologies that
will increase generating capacity and will be less
damaging to fish and aquatic ecosystems.
(7) For electric energy and storage, the pro-
gram should develop high capacity superconducting
transmission lines and generators, and develop dis-
tributed generating systems to accommodate mul-
tiple types of energy sources under a common inter-
connect standard.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy for carrying out activities to achieve the goals de-
scribed in subsection (a)—
(1) $420,000,000 for fiscal year 2002;
(2) $470,000,000 for fiscal year 2003;
(3) $525,000,000 for fiscal year 2004;
(4) $585,000,000 for fiscal year 2005; and
(5) $655,000,000 for fiscal year 2006.
SEC. 103. BIOMASS ENERGY AND RELATED CHEMICAL RE-
SEARCH, DEVELOPMENT, AND DEMONSTRA-
TION.
(a) GOALS.—In order to achieve the goal stated in
section 3, the United States shall have a balanced energy
research, development, and demonstration program to en-
hance biomass energy and related chemical research, de-
velopment, and demonstration with the following goals:
(1) The program should enable the United
States to triple bioenergy use by 2010.
(2) For biomass-based power systems, the pro-
gram should enable commercialization, within five
years after the date of the enactment of this Act, of
integrated power-generating technologies that em-
ploy gas turbines and fuel cells integrated with bio-
mass gasifiers.
(3) For biofuels, the program should accelerate
research, development, and demonstration on ad-
vanced enzymatic hydrolysis technology for making
ethanol from cellulosic feedstock, with the goal that
between 2010 and 2015 ethanol produced from en-
ergy crops would be fully competitive in terms of
price with gasoline as a neat fuel, in either internal
combustion engines or fuel cell vehicles.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy for carrying out research, development, and dem-
onstration activities on biomass-related technologies, in-
cluding transportation, power, and related chemical pro-
duction technologies, under the Biomass Research and De-
velopment Act of 2000—
(1) for biomass transportation—
(A) $54,000,000 for fiscal year 2002;
(B) $65,000,000 for fiscal year 2003;
(C) $78,000,000 for fiscal year 2004;
(D) $94,000,000 for fiscal year 2005; and
(E) $113,000,000 for fiscal year 2006;
(2) for biomass power—
(A) $48,000,000 for fiscal year 2002;
(B) $58,000,000 for fiscal year 2003;
(C) $70,000,000 for fiscal year 2004;
(D) $84,000,000 for fiscal year 2005; and
(E) $101,000,000 for fiscal year 2006; and
(3) 
for 
biomass 
energy-related 
industrial
applications—
(A) $53,000,000 for fiscal year 2002;
(B) $58,000,000 for fiscal year 2003;
(C) $63,000,000 for fiscal year 2004;
(D) $68,000,000 for fiscal year 2005; and
(E) $73,000,000 for fiscal year 2006.
SEC. 104. ASSESSMENT OF RENEWABLE ENERGY RE-
SOURCES.
(a) IN GENERAL.—Not later than one year after the
date of the enactment of this Act, the Secretary of Energy
shall submit to the Congress an assessment of all renew-
able energy resources available for commercial applica-
tions within the United States.
(b) RESOURCE ASSESSMENT.—Such assessment shall
include a detailed inventory describing the available
amount and characteristics of renewable energy sources,
and an estimate of the research, development, demonstra-
tion, and commercial applications efforts necessary to de-
velop each resource. The assessment shall also include
such other information as the Secretary of Energy believes
would be useful in achieving wider commercial applications
of emerging and state-of-the-art renewable energy genera-
tion facilities or devices.
(c) AVAILABILITY.—The technology development in-
formation and cost estimates in the assessment shall be
updated annually and made available to the public, along
with the data used to create the assessment.
(d) AUTHORIZATION OF APPROPRIATIONS.—For the
purposes of carrying out this section, there are authorized
to be appropriated to the Secretary of Energy
$10,000,000 for fiscal year 2002, and such sums as may
be necessary for the fiscal years 2003 through 2020.
SEC. 105. ENHANCED AERONAUTICAL SYSTEM ENERGY EF-
FICIENCY RESEARCH, DEVELOPMENT, AND
DEMONSTRATION.
(a) GOALS.—For aeronautical system energy effi-
ciency, the National Aeronautics and Space Administra-
tion shall seek to—
(1) develop technologies that will enable a 50
percent increase in aircraft engine energy efficiencies
by 2010 as compared to the most energy efficient
engine in the United States commercial aircraft fleet
as of the date of the enactment of this Act; and
(2) develop air transportation management
operational concepts and procedures that will enable
a 25 percent increase in the energy efficiency of the
overall air transport system on a per flight basis by
2010 as compared to the efficiency as of the date of
the enactment of this Act.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Administrator of
the National Aeronautics and Space Administration for
carrying out activities to achieve the goals described in
subsection (a)—
(1) $50,000,000 for fiscal year 2002;
(2) $55,000,000 for fiscal year 2003;
(3) $60,000,000 for fiscal year 2004;
(4) $65,000,000 for fiscal year 2005; and
(5) $70,000,000 for fiscal year 2006.
SEC. 106. PROGRESS REPORT.
The Secretary of Energy shall transmit to the Com-
mittee on Science of the House of Representatives and the
Committee on Energy and Natural Resources of the Sen-
ate an annual report assessing the progress made pursu-
ant to this title in achieving the goal set forth in section
3. The first such report shall be transmitted along with
the first annual budget request from the President occur-
ring at least 6 months after the date of the enactment
of this Act.
TITLE II—COMMERCIAL
APPLICATIONS
SEC. 201. STUDY OF FINANCING FOR PROTOTYPE TECH-
NOLOGIES.
(a) INDEPENDENT ASSESSMENT.—The Secretary of
Energy shall commission an independent assessment of in-
novative financing techniques to facilitate construction of
new renewable energy and energy efficiency facilities that
might not otherwise be built in a competitive market.
(b) CONDUCT OF THE ASSESSMENT.—The Secretary
of Energy shall retain an independent contractor with
proven expertise in financing large capital projects or in
financial services consulting to conduct the assessment
under this section.
(c) CONTENT OF THE ASSESSMENT.—The assess-
ment shall include a comprehensive examination of all
available techniques to safeguard private investors against
risks (including both market-based and government-im-
posed risks) that are beyond the control of the investors.
Such techniques may include Federal loan guarantees,
Federal price guarantees, special tax considerations, and
direct Federal investment.
(d) REPORT.—The Secretary of Energy shall submit
the results of the independent assessment to the Congress
not later than 9 months after the date of enactment of
this section.
SEC. 202. REGULATORY REVIEWS FOR NEW TECHNOLOGIES
AND PROCESSES.
(a) REGULATORY REVIEWS.—Not later than one year
after the date of the enactment of this Act, and every five
years thereafter, the Director of the Office of Science and
Technology Policy shall oversee a review of each Federal
agency’s regulations and policies to identify—
(1) existing regulations and policies that act as
barriers to the development and commercialization of
emerging renewable energy and energy efficiency
technologies and processes (including fuel cells, com-
bined heat and power, distributed generation, and
small-scale renewable energy); and
(2) actions the agency is taking or could take
to—
(A) remove barriers to market entry for
emerging renewable energy and energy effi-
ciency technologies;
(B) increase energy efficiency; or
(C) encourage the use of new processes to
meet energy and environmental goals.
(b) REPORTS
TO CONGRESS.—Not later than 18
months after the date of the enactment of this Act, and
every five years thereafter, the Director of the Office of
Science and Technology Policy shall report to the Con-
gress on the results of the agency reviews conducted under
subsection (a).
(c) CONTENTS OF THE REPORTS.—The reports re-
quired under subsection (b) shall—
(1) identify all regulatory and policy barriers to
the development and commercialization of emerging
renewable energy and energy efficiency technologies
and processes;
(2) actions taken, or proposed to be taken, that
are identified under subsection (a)(2); and
(3) recommendations for changes in laws or
regulations that may be needed to—
(A) expedite the siting and development of
energy production and distribution facilities;
and
(B) encourage the adoption of energy effi-
ciency and process improvements.
SEC. 203. COMMERCIALIZATION ASSISTANCE.
(a) AUTHORITY.—The Secretary of Energy shall pro-
vide, through a competitive review process, assistance to
private sector entities for the commercial application of
renewable energy and energy efficiency technologies.
(b) APPLICATIONS.—The Secretary of Energy shall
establish requirements for applications for assistance
under this section. Such applications shall contain a com-
mercial application plan, including a description of the fi-
nancial, business, and technical support (including sup-
port from universities and national laboratories) the appli-
cant anticipates in its commercial application effort.
(c) SELECTION.—The Secretary of Energy shall se-
lect applicants to receive assistance under this section on
the basis of which applications are the most likely to result
in commercial application of renewable energy and energy
efficiency technologies. The Secretary shall ensure that at
least 50 percent of the funds provided under this section
are provided to small businesses or startup companies.