220
‘‘(C) the sale or transfer to commercial nuclear
power end users is made pursuant to a contract of
at least 3 years’ duration.
‘‘(3) Except as provided in paragraph (5), the United
States Government shall not make any transfer or sale
of uranium in any form under this subsection that would
cause the total amount of uranium transferred or sold pur-
suant to this subsection that is delivered for consumption
by commercial nuclear power end users to exceed—
‘‘(A) 3,000,000 pounds of U3 O8 equivalent in
fiscal year 2005, 2006, 2007, 2008, or 2009;
‘‘(B) 5,000,000 pounds of U3O8 equivalent in
fiscal year 2010 or 2011;
‘‘(C) 7,000,000 pounds of U3O8 equivalent in
fiscal year 2012; and
‘‘(D) 10,000,000 pounds of U3O8 equivalent in
fiscal year 2013 or any fiscal year thereafter.
‘‘(4) Except for sales or transfers under paragraph
(5), for the purposes of this subsection, the recovery of
uranium from uranium bearing materials transferred or
sold by the United States Government to the domestic
uranium industry shall be the preferred method of making
uranium available. The recovered uranium shall be count-
ed against the annual maximum deliveries set forth in this
section, when such uranium is sold to end users.
221
‘‘(5) The United States Government may make the
following sales and transfers:
‘‘(A) Sales or transfers to a Federal agency if
the material is transferred for the use of the receiv-
ing agency without any resale or transfer to another
entity and the material does not meet commercial
specifications.
‘‘(B) Sales or transfers to any person for na-
tional security purposes, as determined by the Sec-
retary.
‘‘(C) Sales or transfers to any State or local
agency or nonprofit, charitable, or educational insti-
tution for use other than the generation of electricity
for commercial use.
‘‘(D) Sales or transfers to the Department of
Energy research reactor sales program.
‘‘(E) Sales or transfers, at fair market value,
for emergency purposes in the event of a disruption
in supply to commercial nuclear power end users in
the United States.
‘‘(F) Sales or transfers, at fair market value,
for use in a commercial reactor in the United States
with nonstandard fuel requirements.
‘‘(G) Sales or transfers provided for under law
for use by the Tennessee Valley Authority in relation
222
to the Department of Energy’s highly enriched ura-
nium or tritium programs.
‘‘(6) For purposes of this subsection, the term
‘United States Government’ does not include the Ten-
nessee Valley Authority.
‘‘(e) SAVINGS PROVISION.—Nothing in this sub-
chapter modifies the terms of the Russian HEU Agree-
ment.
‘‘(f) SERVICES.—Notwithstanding any other provi-
sion of this section, if the Secretary determines that the
Corporation has failed, or may fail, to perform any obliga-
tion under the Agreement between the Department of En-
ergy and the Corporation dated June 17, 2002, and as
amended thereafter, which failure could result in termi-
nation of the Agreement, the Secretary shall notify Con-
gress, in such a manner that affords Congress an oppor-
tunity to comment, prior to a determination by the Sec-
retary whether termination, waiver, or modification of the
Agreement is required. The Secretary is authorized to take
such action as he determines necessary under the Agree-
ment to terminate, waive, or modify provisions of the
Agreement to achieve its purposes.’’.
(b) REPORT.—Not later than 3 years after the date
of enactment of this Act, the Secretary of Energy shall
report to Congress on the implementation of this section.
223
The report shall include a discussion of available excess
uranium inventories; all sales or transfers made by the
United States Government; the impact of such sales or
transfers on the domestic uranium industry, the spot mar-
ket uranium price, and the national security interests of
the United States; and any steps taken to remediate any
adverse impacts of such sales or transfers.
SEC. 631. COOPERATIVE RESEARCH AND DEVELOPMENT
AND SPECIAL DEMONSTRATION PROJECTS
FOR THE URANIUM MINING INDUSTRY.
(a) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy $10,000,000 for each of fiscal years 2006, 2007, and
2008 for—
(1) cooperative, cost-shared agreements between
the Department of Energy and domestic uranium
producers to identify, test, and develop improved in
situ leaching mining technologies, including low-cost
environmental restoration technologies that may be
applied to sites after completion of in situ leaching
operations; and
(2) funding for competitively selected dem-
onstration projects with domestic uranium producers
relating to—
224
(A) enhanced production with minimal en-
vironmental impacts;
(B) restoration of well fields; and
(C) decommissioning and decontamination
activities.
(b) DOMESTIC URANIUM PRODUCER.—For purposes
of this section, the term ‘‘domestic uranium producer’’ has
the meaning given that term in section 1018(4) of the En-
ergy Policy Act of 1992 (42 U.S.C. 2296b–7(4)), except
that the term shall not include any producer that has not
produced uranium from domestic reserves on or after July
30, 1998.
(c) LIMITATION.—No activities funded under this
section may be carried out in the State of New Mexico.
SEC. 632. WHISTLEBLOWER PROTECTION.
(a) DEFINITION OF EMPLOYER.—Section 211(a)(2)
of the Energy Reorganization Act of 1974 (42 U.S.C.
5851(a)(2)) is amended—
(1) in subparagraph (C), by striking ‘‘and’’ at
the end;
(2) in subparagraph (D), by striking the period
at the end and inserting ‘‘; and’’ and
(3) by adding at the end the following:
‘‘(E) a contractor or subcontractor of the
Commission.’’.
225
(b) DE NOVO REVIEW.—Subsection (b) of such sec-
tion 211 is amended by adding at the end the following
new paragraph:
‘‘(4) If the Secretary has not issued a final de-
cision within 540 days after the filing of a complaint
under paragraph (1), and there is no showing that
such delay is due to the bad faith of the person
seeking relief under this paragraph, such person
may bring an action at law or equity for de novo re-
view in the appropriate district court of the United
States, which shall have jurisdiction over such an ac-
tion without regard to the amount in controversy.’’.
SEC. 633. MEDICAL ISOTOPE PRODUCTION.
Section 134 of the Atomic Energy Act of 1954 (42
U.S.C. 2160d) is amended—
(1) in subsection a., by striking ‘‘a. The Com-
mission’’ and inserting ‘‘a. IN GENERAL.—Except as
provided in subsection b., the Commission’’;
(2) by redesignating subsection b. as subsection
c.; and
(3) by inserting after subsection a. the fol-
lowing:
‘‘b. MEDICAL ISOTOPE PRODUCTION.—
‘‘(1) DEFINITIONS.—In this subsection:
226
‘‘(A) HIGHLY ENRICHED URANIUM.—The
term ‘highly enriched uranium’ means uranium
enriched to include concentration of U–235
above 20 percent.
‘‘(B) MEDICAL ISOTOPE.—The term ‘med-
ical isotope’ includes Molybdenum 99, Iodine
131, Xenon 133, and other radioactive mate-
rials used to produce a radiopharmaceutical for
diagnostic, therapeutic procedures or for re-
search and development.
‘‘(C) RADIOPHARMACEUTICAL.—The term
‘radiopharmaceutical’ means a radioactive iso-
tope that—
‘‘(i) contains byproduct material com-
bined with chemical or biological material;
and
‘‘(ii) is designed to accumulate tempo-
rarily in a part of the body for therapeutic
purposes or for enabling the production of
a useful image for use in a diagnosis of a
medical condition.
‘‘(D) RECIPIENT COUNTRY.—The term ‘re-
cipient 
country’ 
means 
Canada, 
Belgium,
France, Germany, and the Netherlands.
227
‘‘(2) LICENSES.—The Commission may issue a
license authorizing the export (including shipment to
and use at intermediate and ultimate consignees
specified in the license) to a recipient country of
highly enriched uranium for medical isotope produc-
tion if, in addition to any other requirements of this
Act (except subsection a.), the Commission deter-
mines that—
‘‘(A) a recipient country that supplies an
assurance letter to the United States Govern-
ment in connection with the consideration by
the Commission of the export license applica-
tion has informed the United States Govern-
ment that any intermediate consignees and the
ultimate consignee specified in the application
are required to use the highly enriched uranium
solely to produce medical isotopes; and
‘‘(B) the highly enriched uranium for med-
ical isotope production will be irradiated only in
a reactor in a recipient country that—
‘‘(i) uses an alternative nuclear reac-
tor fuel; or
‘‘(ii) is the subject of an agreement
with the United States Government to con-
vert to an alternative nuclear reactor fuel
228
when alternative nuclear reactor fuel can
be used in the reactor.
‘‘(3) REVIEW
OF
PHYSICAL
PROTECTION
RE-
QUIREMENTS.—
‘‘(A) IN GENERAL.—The Commission shall
review the adequacy of physical protection re-
quirements that, as of the date of an applica-
tion under paragraph (2), are applicable to the
transportation and storage of highly enriched
uranium for medical isotope production or con-
trol of residual material after irradiation and
extraction of medical isotopes.
‘‘(B) IMPOSITION
OF
ADDITIONAL
RE-
QUIREMENTS.—If the Commission determines
that additional physical protection requirements
are necessary (including a limit on the quantity
of highly enriched uranium that may be con-
tained in a single shipment), the Commission
shall impose such requirements as license condi-
tions or through other appropriate means.
‘‘(4) FIRST REPORT TO CONGRESS.—
‘‘(A) NAS STUDY.—The Secretary shall
enter into an arrangement with the National
Academy of Sciences to conduct a study to
determine—
229
‘‘(i) the feasibility of procuring sup-
plies of medical isotopes from commercial
sources that do not use highly enriched
uranium;
‘‘(ii) the current and projected de-
mand and availability of medical isotopes
in regular current domestic use;
‘‘(iii) the progress that is being made
by the Department of Energy and others
to eliminate all use of highly enriched ura-
nium in reactor fuel, reactor targets, and
medical isotope production facilities; and
‘‘(iv) the potential cost differential in
medical isotope production in the reactors
and target processing facilities if the prod-
ucts were derived from production systems
that do not involve fuels and targets with
highly enriched uranium.
‘‘(B) FEASIBILITY.—For the purpose of
this subsection, the use of low enriched uranium
to produce medical isotopes shall be determined
to be feasible if—
‘‘(i) low enriched uranium targets
have been developed and demonstrated for
use in the reactors and target processing
230
facilities that produce significant quantities
of medical isotopes to serve United States
needs for such isotopes;
‘‘(ii) sufficient quantities of medical
isotopes are available from low enriched
uranium targets and fuel to meet United
States domestic needs; and
‘‘(iii) the average anticipated total
cost increase from production of medical
isotopes in such facilities without use of
highly enriched uranium is less than 10
percent.
‘‘(C) REPORT BY THE SECRETARY.—Not
later than 5 years after the date of enactment
of the Energy Policy Act of 2005, the Secretary
shall submit to Congress a report that—
‘‘(i) contains the findings of the Na-
tional Academy of Sciences made in the
study under subparagraph (A); and
‘‘(ii) discloses the existence of any
commitments from commercial producers
to provide domestic requirements for med-
ical isotopes without use of highly enriched
uranium consistent with the feasibility cri-
teria described in subparagraph (B) not
231
later than the date that is 4 years after
the date of submission of the report.
‘‘(5) SECOND REPORT TO CONGRESS.—If the
study of the National Academy of Sciences deter-
mines under paragraph (4)(A)(i) that the procure-
ment of supplies of medical isotopes from commer-
cial sources that do not use highly enriched uranium
is feasible, but the Secretary is unable to report the
existence 
of 
commitments 
under 
paragraph
(4)(C)(ii), not later than the date that is 6 years
after the date of enactment of the Energy Policy Act
of 2005, the Secretary shall submit to Congress a
report that describes options for developing domestic
supplies of medical isotopes in quantities that are
adequate to meet domestic demand without the use
of highly enriched uranium consistent with the cost
increase described in paragraph (4)(B)(iii).
‘‘(6) CERTIFICATION.—At such time as com-
mercial facilities that do not use highly enriched
uranium are capable of meeting domestic require-
ments for medical isotopes, within the cost increase
described in paragraph (4)(B)(iii) and without im-
pairing the reliable supply of medical isotopes for
domestic utilization, the Secretary shall submit to
Congress a certification to that effect.
232
‘‘(7) SUNSET PROVISION.—After the Secretary
submits a certification under paragraph (6), the
Commission shall, by rule, terminate its review of
export license applications under this subsection.’’.
SEC. 634. FERNALD BYPRODUCT MATERIAL.
Title III of the Nuclear Waste Policy Act of 1982
(42 U.S.C. 10221 et seq.) is amended by adding at the
end the following new section:
‘‘FERNALD BYPRODUCT MATERIAL
‘‘SEC. 307. Notwithstanding any other law, the mate-
rial in the concrete silos at the Fernald uranium proc-
essing facility managed on the date of enactment of this
section by the Department shall be considered byproduct
material (as defined by section 11 e.(2) of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2014(e)(2))). The Depart-
ment may dispose of the material in a facility regulated
by the Commission or by an Agreement State. If the De-
partment disposes of the material in such a facility, the
Commission or the Agreement State shall regulate the ma-
terial as byproduct material under that Act. This material
shall remain subject to the jurisdiction of the Department
until it is received at a commercial, Commission-licensed,
or Agreement State-licensed facility, at which time the
material shall be subject to the health and safety require-
ments of the Commission or the Agreement State with ju-
risdiction over the disposal site.’’.
233
SEC. 635. SAFE DISPOSAL OF GREATER-THAN-CLASS C RA-
DIOACTIVE WASTE.
Subtitle D of title I of the Nuclear Waste Policy Act
of 1982 (42 U.S.C. 10171) is amended by adding at the
end the following new section:
‘‘SAFE DISPOSAL OF GREATER-THAN-CLASS C
RADIOACTIVE WASTE
‘‘SEC. 152. (a) DESIGNATION OF RESPONSIBILITY.—
The Secretary shall designate an Office within the Depart-
ment to have the responsibility for activities needed to de-
velop a new, or use an existing, facility for safely disposing
of all low-level radioactive waste with concentrations of
radionuclides that exceed the limits established by the
Commission for Class C radioactive waste (referred to in
this section as ‘GTCC waste’).
‘‘(b) COMPREHENSIVE PLAN.—The Secretary shall
develop a comprehensive plan for permanent disposal of
GTCC waste which includes plans for a disposal facility.
This plan shall be transmitted to Congress in a series of
reports, including the following:
‘‘(1) REPORT
ON
SHORT-TERM
PLAN.—Not
later than 180 days after the date of enactment of
this section, the Secretary shall submit to Congress
a plan describing the Secretary’s operational strat-
egy for continued recovery and storage of GTCC
waste until a permanent disposal facility is available.
234
‘‘(2) UPDATE OF 1987 REPORT.—
‘‘(A) IN GENERAL.—Not later than 1 year
after the date of enactment of this section, the
Secretary shall submit to Congress an update of
the Secretary’s February 1987 report submitted
to Congress that made comprehensive rec-
ommendations for the disposal of GTCC waste.
‘‘(B) CONTENTS.—The update under this
paragraph shall contain—
‘‘(i) a detailed description and identi-
fication of the GTCC waste that is to be
disposed;
‘‘(ii) a description of current domestic
and international programs, both Federal
and commercial, for management and dis-
position of GTCC waste;
‘‘(iii) an identification of the Federal
and private options and costs for the safe
disposal of GTCC waste;
‘‘(iv) an identification of the options
for ensuring that, wherever possible, gen-
erators and users of GTCC waste bear all
reasonable costs of waste disposal;
235
‘‘(v) an identification of any new stat-
utory authority required for disposal of
GTCC waste; and
‘‘(vi) in coordination with the Envi-
ronmental Protection Agency and the Com-
mission, an identification of any new regu-
latory guidance needed for the disposal of
GTCC waste.
‘‘(3) REPORT
ON
COST
AND
SCHEDULE
FOR
COMPLETION
OF
ENVIRONMENTAL
IMPACT
STATE-
MENT AND RECORD OF DECISION.—Not later than
180 days after the date of submission of the update
required under paragraph (2), the Secretary shall
submit to Congress a report containing an estimate
of the cost and schedule to complete a draft and
final environmental impact statement and to issue a
record of decision for a permanent disposal facility,
utilizing either a new or existing facility, for GTCC
waste.’’.
SEC. 636. PROHIBITION ON NUCLEAR EXPORTS TO COUN-
TRIES THAT SPONSOR TERRORISM.
(a) IN GENERAL.—Section 129 of the Atomic Energy
Act of 1954 (42 U.S.C. 2158) is amended—
(1) by inserting ‘‘a.’’ before ‘‘No nuclear mate-
rials and equipment’’; and
236
(2) by adding at the end the following new sub-
section:
‘‘b.(1) Notwithstanding any other provision of law,
including specifically section 121 of this Act, and except
as provided in paragraphs (2) and (3), no nuclear mate-
rials and equipment or sensitive nuclear technology, in-
cluding items and assistance authorized by section 57 b.
of this Act and regulated under part 810 of title 10, Code
of Federal Regulations, and nuclear-related items on the
Commerce Control List maintained under part 774 of title
15 of the Code of Federal Regulations, shall be exported
or reexported, or transferred or retransferred whether di-
rectly or indirectly, and no Federal agency shall issue any
license, approval, or authorization for the export or reex-
port, or transfer, or retransfer, whether directly or indi-
rectly, of these items or assistance (as defined in this para-
graph) to any country whose government has been identi-
fied by the Secretary of State as engaged in state sponsor-
ship of terrorist activities (specifically including any coun-
try the government of which has been determined by the
Secretary of State under section 620A(a) of the Foreign
Assistance Act of 1961 (22 U.S.C. 2371(a)), section
6(j)(1) of the Export Administration Act of 1979 (50
U.S.C. App. 2405(j)(1)), or section 40(d) of the Arms Ex-
237
port Control Act (22 U.S.C. 2780(d)) to have repeatedly
provided support for acts of international terrorism).
‘‘(2) This subsection shall not apply to exports, reex-
ports, transfers, or retransfers of radiation monitoring
technologies, surveillance equipment, seals, cameras, tam-
per-indication devices, nuclear detectors, monitoring sys-
tems, or equipment necessary to safely store, transport,
or remove hazardous materials, whether such items, serv-
ices, or information are regulated by the Department of
Energy, the Department of Commerce, or the Nuclear
Regulatory Commission, except to the extent that such
technologies, equipment, seals, cameras, devices, detectors,
or systems are available for use in the design or construc-
tion of nuclear reactors or nuclear weapons.
‘‘(3) The President may waive the application of
paragraph (1) to a country if the President determines
and certifies to Congress that the waiver will not result
in any increased risk that the country receiving the waiver
will acquire nuclear weapons, nuclear reactors, or any ma-
terials or components of nuclear weapons and—
‘‘(A) the government of such country has not
within the preceding 12-month period willfully aided
or abetted the international proliferation of nuclear
explosive devices to individuals or groups or willfully
238
aided and abetted an individual or groups in acquir-
ing unsafeguarded nuclear materials;
‘‘(B) in the judgment of the President, the gov-
ernment of such country has provided adequate,
verifiable assurances that it will cease its support for
acts of international terrorism;
‘‘(C) the waiver of that paragraph is in the vital
national security interest of the United States; or
‘‘(D) such a waiver is essential to prevent or re-
spond to a serious radiological hazard in the country
receiving the waiver that may or does threaten pub-
lic health and safety.’’.
(b) APPLICABILITY
TO EXPORTS APPROVED
FOR
TRANSFER BUT NOT TRANSFERRED.—Subsection b. of
section 129 of Atomic Energy Act of 1954, as added by
subsection (a) of this section, shall apply with respect to
exports that have been approved for transfer as of the date
of the enactment of this Act but have not yet been trans-
ferred as of that date.
SEC. 638. NATIONAL URANIUM STOCKPILE.
The USEC Privatization Act (42 U.S.C. 2297h et
seq.) is amended by adding at the end the following new
section:
239
‘‘SEC. 3118. NATIONAL URANIUM STOCKPILE.
‘‘(a) STOCKPILE CREATION.—The Secretary of En-
ergy may create a national low-enriched uranium stockpile
with the goals to—
‘‘(1) enhance national energy security; and
‘‘(2) reduce global proliferation threats.
‘‘(b) SOURCE OF MATERIAL.—The Secretary shall
obtain material for the stockpile from—
‘‘(1) material derived from blend-down of Rus-
sian highly enriched uranium derived from weapons
materials; and
‘‘(2) domestically mined and enriched uranium.
‘‘(c) LIMITATION ON SALES OR TRANSFERS.—Sales
or transfer of materials in the stockpile shall occur pursu-
ant to section 3112.’’.
SEC. 639. NUCLEAR REGULATORY COMMISSION MEETINGS.
If a quorum of the Nuclear Regulatory Commission
gathers to discuss official Commission business the discus-
sions shall be recorded, and the Commission shall notify
the public of such discussions within 15 days after they
occur. The Commission shall promptly make a transcript
of the recording available to the public on request, except
to the extent that public disclosure is exempted or prohib-
ited by law. This section shall not apply to a meeting,
within the meaning of that term under section 552b(a)(2)
of title 5, United States Code.
240
SEC. 640. EMPLOYEE BENEFITS.
Section 3110(a) of the USEC Privatization Act (42
U.S.C. 2297h-8(a)) is amended by adding at the end the
following new paragraph:
‘‘(8) CONTINUITY OF BENEFITS.—To the extent ap-
propriations are provided in advance for this purpose or
are otherwise available, not later than 30 days after the
date of enactment of this paragraph, the Secretary shall
implement such actions as are necessary to ensure that
any employee who—
‘‘(A) is involved in providing infrastructure or
environmental remediation services at the Ports-
mouth, Ohio, or the Paducah, Kentucky, Gaseous
Diffusion Plant;
‘‘(B) has been an employee of the Department
of Energy’s predecessor management and inte-
grating contractor (or its first or second tier sub-
contractors), or of the Corporation, at the Ports-
mouth, Ohio, or the Paducah, Kentucky, facility;
and
‘‘(C) was eligible as of April 1, 2005, to partici-
pate in or transfer into the Multiple Employer Pen-
sion Plan or the associated multiple employer retiree
health care benefit plans, as defined in those plans,
shall continue to be eligible to participate in or transfer
into such pension or health care benefit plans.’’.
241
Subtitle C—Additional Hydrogen
Production Provisions
SEC. 651. HYDROGEN PRODUCTION PROGRAMS.
(a) ADVANCED REACTOR HYDROGEN COGENERA-
TION PROJECT.—
(1) PROJECT ESTABLISHMENT.—The Secretary
is directed to establish an Advanced Reactor Hydro-
gen Cogeneration Project.
(2) PROJECT
DEFINITION.—The project shall
consist of the research, development, design, con-
struction, and operation of a hydrogen production
cogeneration research facility that, relative to the
current commercial reactors, enhances safety fea-
tures, reduces waste production, enhances thermal
efficiencies, increases proliferation resistance, and
has the potential for improved economics and phys-
ical security in reactor siting. This facility shall be
constructed so as to enable research and develop-
ment on advanced reactors of the type selected and
on alternative approaches for reactor-based produc-
tion of hydrogen.
(3) PROJECT MANAGEMENT.—
(A) MANAGEMENT.—The project shall be
managed within the Department by the Office
of Nuclear Energy, Science, and Technology.
242
(B) LEAD LABORATORY.—The lead labora-
tory for the project, providing the site for the
reactor construction, shall be the Idaho Na-
tional Laboratory (in this subsection referred to
as ‘‘INL’’).
(C) STEERING
COMMITTEE.—The Sec-
retary shall establish a national steering com-
mittee with membership from the national lab-
oratories, universities, and industry to provide
advice to the Secretary and the Director of the
Office of Nuclear Energy, Science, and Tech-
nology on technical and program management
aspects of the project.
(D) COLLABORATION.—Project activities
shall be conducted at INL, other national lab-
oratories, universities, domestic industry, and
international partners.
(4) PROJECT REQUIREMENTS.—
(A) RESEARCH AND DEVELOPMENT.—
(i) IN
GENERAL.—The project shall
include planning, research and develop-
ment, design, and construction of an ad-
vanced, next-generation, nuclear energy
system suitable for enabling further re-
search and development on advanced reac-
243
tor technologies and alternative approaches
for reactor-based generation of hydrogen.
(ii) REACTOR TEST CAPABILITIES AT
INL.—The project shall utilize, where ap-
propriate, extensive reactor test capabilities
resident at INL.
(iii) 
ALTERNATIVES.—The 
project
shall be designed to explore technical, envi-
ronmental, and economic feasibility of al-
ternative approaches for reactor-based hy-
drogen production.
(iv) INDUSTRIAL
LEAD.—The indus-
trial lead for the project shall be a com-
pany incorporated in the United States.
(B) INTERNATIONAL COLLABORATION.—
(i) IN GENERAL.—The Secretary shall
seek international cooperation, participa-
tion, and financial contribution in this
project.
(ii) 
ASSISTANCE
FROM
INTER-
NATIONAL PARTNERS.—The Secretary may
contract for assistance from specialists or
facilities from member countries of the
Generation IV International Forum, the
Russian Federation, or other international
244
partners where such specialists or facilities
provide access to cost-effective and relevant
skills or test capabilities.
(iii) GENERATION IV INTERNATIONAL
FORUM.—International activities shall be
coordinated with the Generation IV Inter-
national Forum.
(iv) GENERATION
IV
NUCLEAR
EN-
ERGY SYSTEMS PROGRAM.—The Secretary
may combine this project with the Genera-
tion IV Nuclear Energy Systems Program.
(C) 
DEMONSTRATION.—The 
overall
project, which may involve demonstration of se-
lected project objectives in a partner nation,
must demonstrate both electricity and hydrogen
production and may provide flexibility, where
technically and economically feasible in the de-
sign and construction, to enable tests of alter-
native reactor core and cooling configurations.
(D) PARTNERSHIPS.—The Secretary shall
establish cost-shared partnerships with domestic
industry or international participants for the re-
search, development, design, construction, and
operation of the research facility, and pref-
erence in determining the final project structure
245
shall be given to an overall project which re-
tains United States leadership while maximizing
cost sharing opportunities and minimizing Fed-
eral funding responsibilities.
(E) TARGET DATE.—The Secretary shall
select technologies and develop the project to
provide initial testing of either hydrogen pro-
duction or electricity generation by 2011, or
provide a report to Congress explaining why
this date is not feasible.
(F) 
WAIVER
OF
CONSTRUCTION
TIMELINES.—The Secretary is authorized to
conduct the Advanced Reactor Hydrogen Co-
generation Project without the constraints of
DOE Order 413.3, relating to program and
project management for the acquisition of cap-
ital assets, as necessary to meet the specified
operational date.
(G) COMPETITION.—The Secretary may
fund up to 2 teams for up to 1 year to develop
detailed proposals for competitive evaluation
and selection of a single proposal and concept
for further progress. The Secretary shall define
the format of the competitive evaluation of pro-
posals.
246
(H) USE OF FACILITIES.—Research facili-
ties in industry, national laboratories, or univer-
sities either within the United States or with
cooperating international partners may be used
to develop the enabling technologies for the re-
search facility. Utilization of domestic univer-
sity-based facilities shall be encouraged to pro-
vide educational opportunities for student devel-
opment.
(I) ROLE OF NUCLEAR REGULATORY COM-
MISSION.—
(i) IN GENERAL.—The Nuclear Regu-
latory Commission shall have licensing and
regulatory authority for any reactor au-
thorized under this subsection, pursuant to
section 202 of the Energy Reorganization
Act of 1974 (42 U.S.C. 5842).
(ii) RISK-BASED CRITERIA.—The Sec-
retary shall seek active participation of the
Nuclear Regulatory Commission through-
out the project to develop risk-based cri-
teria for any future commercial develop-
ment of a similar reactor architecture.
(J) REPORT.—The Secretary shall develop
and transmit to Congress a comprehensive
247
project plan not later than 3 months after the
date of enactment of this Act. The project plan
shall be updated annually with each annual
budget submission.
(b) 
ADVANCED
NUCLEAR
REACTOR
TECH-
NOLOGIES.—The Secretary shall—
(1) prepare a detailed roadmap for carrying out
the provisions in this subtitle related to advanced
nuclear reactor technologies and for implementing
the recommendations related to advanced nuclear re-
actor technologies that are included in the report
transmitted under subsection (d); and
(2) provide for the establishment of 5 projects
in geographic areas that are regionally and climati-
cally diverse to demonstrate the commercial produc-
tion of hydrogen at existing nuclear power plants,
including one demonstration project at a national
laboratory or institution of higher education using
an advanced gas-cooled reactor.
(c) COLLOCATION WITH HYDROGEN PRODUCTION
FACILITY.—Section 103 of the Atomic Energy Act of
1954 (42 U.S.C. 2011) is amended by adding at the end
the following new subsection:
‘‘g. The Commission shall give priority to the licens-
ing of a utilization facility that is collocated with a hydro-
248
gen production facility. The Commission shall issue a final
decision approving or disapproving the issuance of a li-
cense to construct and operate a utilization facility not
later than the expiration of 3 years after the date of the
submission of such application, if the application ref-
erences a Commission-certified design and an early site
permit, unless the Commission determines that the appli-
cant has proposed material and substantial changes to the
design or the site design parameters.’’.
(d) REPORT.—The Secretary shall transmit to the
Congress not later than 120 days after the date of enact-
ment of this Act a report containing detailed summaries
of the roadmaps prepared under subsection (b)(1), de-
scriptions of the Secretary’s progress in establishing the
projects and other programs required under this section,
and recommendations for promoting the availability of ad-
vanced nuclear reactor energy technologies for the produc-
tion of hydrogen.
(e) AUTHORIZATION OF APPROPRIATIONS.—For the
purpose of supporting research programs related to the
development of advanced nuclear reactor technologies
under this section, there are authorized to be appropriated
to the Secretary—
(1) $65,000,000 for fiscal year 2006;
(2) $74,750,000 for fiscal year 2007;
249
(3) $85,962,500 for fiscal year 2008;
(4) $98,856,875 for fiscal year 2009;
(5) $113,685,406 for fiscal year 2010;
(6) $130,738,217 for fiscal year 2011;
(7) $150,348,950 for fiscal year 2012;
(8) $172,901,292 for fiscal year 2013;
(9) $198,836,486 for fiscal year 2014; and
(10) $228,661,959 for fiscal year 2015.
SEC. 652. DEFINITIONS.
For purposes of this subtitle—
(1) the term ‘‘advanced nuclear reactor tech-
nologies’’ means—
(A) technologies related to advanced light
water reactors that may be commercially avail-
able in the near-term, including mid-sized reac-
tors with passive safety features, for the gen-
eration of electric power from nuclear fission
and the production of hydrogen; and
(B) technologies related to other nuclear
reactors that may require prototype demonstra-
tion prior to availability in the mid-term or
long-term, including high-temperature, gas-
cooled reactors and liquid metal reactors, for
the generation of electric power from nuclear
fission and the production of hydrogen;
250
(2) the term ‘‘institution of higher education’’
has the meaning given to that term in section
101(a) of the Higher Education Act of 1965 (20
U.S.C. 1001(a)); and
(3) the term ‘‘Secretary’’ means the Secretary
of Energy.
Subtitle D—Nuclear Security
SEC. 661. NUCLEAR FACILITY THREATS.
(a) STUDY.—The President, in consultation with the
Nuclear Regulatory Commission (referred to in this sub-
title as the ‘‘Commission’’) and other appropriate Federal,
State, and local agencies and private entities, shall con-
duct a study to identify the types of threats that pose an
appreciable risk to the security of the various classes of
facilities licensed by the Commission under the Atomic
Energy Act of 1954 (42 U.S.C. 2011 et seq.). Such study
shall take into account, but not be limited to—
(1) the events of September 11, 2001;
(2) an assessment of physical, cyber, bio-
chemical, and other terrorist threats;
(3) the potential for attack on facilities by mul-
tiple coordinated teams of a large number of individ-
uals;
(4) the potential for assistance in an attack
from several persons employed at the facility;
251
(5) the potential for suicide attacks;
(6) the potential for water-based and air-based
threats;
(7) the potential use of explosive devices of con-
siderable size and other modern weaponry;
(8) the potential for attacks by persons with a
sophisticated knowledge of facility operations;
(9) the potential for fires, especially fires of
long duration;
(10) the potential for attacks on spent fuel
shipments by multiple coordinated teams of a large
number of individuals;
(11) the adequacy of planning to protect the
public health and safety at and around nuclear fa-
cilities, as appropriate, in the event of a terrorist at-
tack against a nuclear facility; and
(12) the potential for theft and diversion of nu-
clear materials from such facilities.
(b) SUMMARY AND CLASSIFICATION REPORT.—Not
later than 180 days after the date of the enactment of
this Act, the President shall transmit to Congress and the
Commission a report—
(1) summarizing the types of threats identified
under subsection (a); and
252
(2) classifying each type of threat identified
under subsection (a), in accordance with existing
laws and regulations, as either—
(A) involving attacks and destructive acts,
including sabotage, directed against the facility
by an enemy of the United States, whether a
foreign government or other person, or other-
wise falling under the responsibilities of the
Federal Government; or
(B) involving the type of risks that Com-
mission licensees should be responsible for
guarding against.
(c) FEDERAL ACTION REPORT.—Not later than 90
days after the date on which a report is transmitted under
subsection (b), the President shall transmit to Congress
a report on actions taken, or to be taken, to address the
types of threats identified under subsection (b)(2)(A), in-
cluding identification of the Federal, State, and local
agencies responsible for carrying out the obligations and
authorities of the United States. Such report may include
a classified annex, as appropriate.
(d) REGULATIONS.—Not later than 180 days after
the date on which a report is transmitted under subsection
(b), the Commission may revise, by rule, the design basis
threats issued before the date of enactment of this section
253
as the Commission considers appropriate based on the
summary and classification report.
(e) PHYSICAL SECURITY PROGRAM.—The Commis-
sion shall establish an operational safeguards response
evaluation program that ensures that the physical protec-
tion capability and operational safeguards response for
sensitive nuclear facilities, as determined by the Commis-
sion consistent with the protection of public health and
the common defense and security, shall be tested periodi-
cally through Commission approved or designed, observed,
and evaluated force-on-force exercises to determine wheth-
er the ability to defeat the design basis threat is being
maintained. For purposes of this subsection, the term
‘‘sensitive nuclear facilities’’ includes at a minimum com-
mercial nuclear power plants and category I fuel cycle fa-
cilities.
(f) CONTROL
OF INFORMATION.—Notwithstanding
any other provision of law, the Commission may undertake
any rulemaking under this subtitle in a manner that will
fully protect safeguards and classified national security in-
formation.
(g) FEDERAL SECURITY COORDINATORS.—
(1) REGIONAL
OFFICES.—Not later than 18
months after the date of enactment of this Act, the
Commission shall assign a Federal security coordi-
254
nator, under the employment of the Commission, to
each region of the Commission.
(2) RESPONSIBILITIES.—The Federal security
coordinator shall be responsible for—
(A) communicating with the Commission
and other Federal, State, and local authorities
concerning threats, including threats against
such classes of facilities as the Commission de-
termines to be appropriate;
(B) ensuring that such classes of facilities
as the Commission determines to be appropriate
maintain security consistent with the security
plan in accordance with the appropriate threat
level; and
(C) assisting in the coordination of secu-
rity measures among the private security forces
at such classes of facilities as the Commission
determines to be appropriate and Federal,
State, and local authorities, as appropriate.
(h) TRAINING PROGRAM.—The President shall estab-
lish a program to provide technical assistance and training
to Federal agencies, the National Guard, and State and
local law enforcement and emergency response agencies in
responding to threats against a designated nuclear facility.
255
SEC. 
662. 
FINGERPRINTING 
FOR 
CRIMINAL 
HISTORY
RECORD CHECKS.
(a) IN GENERAL.—Subsection a. of section 149 of
the Atomic Energy Act of 1954 (42 U.S.C. 2169(a)) is
amended—
(1) by striking ‘‘a. The Nuclear’’ and all that
follows through ‘‘section 147.’’ and inserting the fol-
lowing:
‘‘a. IN GENERAL.—
‘‘(1) REQUIREMENTS.—
‘‘(A) IN GENERAL.—The Commission shall
require each individual or entity—
‘‘(i) that is licensed or certified to en-
gage in an activity subject to regulation by
the Commission;
‘‘(ii) that has filed an application for
a license or certificate to engage in an ac-
tivity subject to regulation by the Commis-
sion; or
‘‘(iii) that has notified the Commis-
sion, in writing, of an intent to file an ap-
plication for licensing, certification, permit-
ting, or approval of a product or activity
subject to regulation by the Commission,
to fingerprint each individual described in sub-
paragraph (B) before the individual is per-
256
mitted unescorted access or access, whichever is
applicable, as described in subparagraph (B).
‘‘(B) INDIVIDUALS
REQUIRED
TO
BE
FINGERPRINTED.—The Commission shall re-
quire to be fingerprinted each individual who—
‘‘(i) is permitted unescorted access
to—
‘‘(I) a utilization facility; or
‘‘(II) 
radioactive 
material 
or
other property subject to regulation
by the Commission that the Commis-
sion determines to be of such signifi-
cance to the public health and safety
or the common defense and security
as to warrant fingerprinting and
background checks; or
‘‘(ii) is permitted access to safeguards
information under section 147.’’;
(2) by striking ‘‘All fingerprints obtained by a
licensee or applicant as required in the preceding
sentence’’ and inserting the following:
‘‘(2) SUBMISSION
TO
THE
ATTORNEY
GEN-
ERAL.—All fingerprints obtained by an individual or
entity as required in paragraph (1)’’;
257
(3) by striking ‘‘The costs of any identification
and records check conducted pursuant to the pre-
ceding sentence shall be paid by the licensee or ap-
plicant.’’ and inserting the following:
‘‘(3) COSTS.—The costs of any identification
and records check conducted pursuant to paragraph
(1) shall be paid by the individual or entity required
to conduct the fingerprinting under paragraph
(1)(A).’’; and
(4) by striking ‘‘Notwithstanding any other pro-
vision of law, the Attorney General may provide all
the results of the search to the Commission, and, in
accordance with regulations prescribed under this
section, the Commission may provide such results to
licensee or applicant submitting such fingerprints.’’
and inserting the following:
‘‘(4) PROVISION TO INDIVIDUAL OR ENTITY RE-
QUIRED
TO
CONDUCT
FINGERPRINTING.—Notwith-
standing any other provision of law, the Attorney
General may provide all the results of the search to
the Commission, and, in accordance with regulations
prescribed under this section, the Commission may
provide such results to the individual or entity re-
quired to conduct the fingerprinting under para-
graph (1)(A).’’.
258
(b) ADMINISTRATION.—Subsection c. of section 149
of the Atomic Energy Act of 1954 (42 U.S.C. 2169(c))
is amended—
(1) by striking ‘‘, subject to public notice and
comment, regulations—’’ and inserting ‘‘require-
ments—’’; and
(2) 
by 
striking, 
in 
paragraph 
(2)(B),
‘‘unescorted access to the facility of a licensee or ap-
plicant’’ and inserting ‘‘unescorted access to a utili-
zation facility, radioactive material, or other prop-
erty described in subsection a.(1)(B)’’.
(c) BIOMETRIC METHODS.—Subsection d. of section
149 of the Atomic Energy Act of 1954 (42 U.S.C.
2169(d)) is redesignated as subsection e., and the fol-
lowing is inserted after subsection c.:
‘‘d. USE
OF OTHER BIOMETRIC METHODS.—The
Commission may satisfy any requirement for a person to
conduct fingerprinting under this section using any other
biometric method for identification approved for use by
the Attorney General, after the Commission has approved
the alternative method by rule.’’.
259
SEC. 663. USE OF FIREARMS BY SECURITY PERSONNEL OF
LICENSEES AND CERTIFICATE HOLDERS OF
THE COMMISSION.
Section 161 of the Atomic Energy Act of 1954 (42
U.S.C. 2201) is amended by adding at the end the fol-
lowing subsection:
‘‘z.(1) notwithstanding section 922(a)(4) and
(o) of title 18, United States Code, or any similar
provision of any State law or any similar rule or reg-
ulation of a State or any political subdivision of a
State prohibiting the transfer or possession of a
handgun, a rifle or shotgun, a short-barreled shot-
gun, a short-barreled rifle, a machinegun, a semi-
automatic assault weapon, ammunition for the fore-
going, or a large capacity ammunition feeding de-
vice, authorize security personnel of licensees and
certificate holders of the Commission (including em-
ployees of contractors of licensees and certificate
holders) to receive, possess, transport, import, and
use 1 or more of those weapons, ammunition, or de-
vices, if the Commission determines that—
‘‘(A) such authorization is necessary to the
discharge of the security personnel’s official du-
ties; and
‘‘(B) the security personnel—
260
‘‘(i) are not otherwise prohibited from
possessing or receiving a firearm under
Federal or State laws pertaining to posses-
sion of firearms by certain categories of
persons;
‘‘(ii) have successfully completed re-
quirements established through guidelines
implementing this subsection for training
in use of firearms and tactical maneuvers;
‘‘(iii) are engaged in the protection
of—
‘‘(I) facilities owned or operated
by a Commission licensee or certifi-
cate holder that are designated by the
Commission; or
‘‘(II) 
radioactive 
material 
or
other property owned or possessed by
a person that is a licensee or certifi-
cate holder of the Commission, or that
is being transported to or from a fa-
cility owned or operated by such a li-
censee or certificate holder, and that
has been determined by the Commis-
sion to be of significance to the com-
261
mon defense and security or public
health and safety; and
‘‘(iv) are discharging their official du-
ties.
‘‘(2) Such receipt, possession, transportation,
importation, or use shall be subject to—
‘‘(A) chapter 44 of title 18, United States
Code, except for section 922(a)(4) and (o);
‘‘(B) chapter 53 of title 26, United States
Code, except for section 5844; and
‘‘(C) a background check by the Attorney
General, based on fingerprints and including a
check of the system established under section
103(b) of the Brady Handgun Violence Preven-
tion Act (18 U.S.C. 922 note) to determine
whether the person applying for the authority is
prohibited from possessing or receiving a fire-
arm under Federal or State law.
‘‘(3) This subsection shall become effective
upon the issuance of guidelines by the Commission,
with the approval of the Attorney General, to govern
the implementation of this subsection.
‘‘(4) In this subsection, the terms ‘handgun’,
‘rifle’, ‘shotgun’, ‘firearm’, ‘ammunition’, ‘machine-
gun’, ‘semiautomatic assault weapon’, ‘large capacity
262
ammunition feeding device’, ‘short-barreled shotgun’,
and ‘short-barreled rifle’ shall have the meanings
given those terms in section 921(a) of title 18,
United States Code.’’.
SEC. 664. UNAUTHORIZED INTRODUCTION OF DANGEROUS
WEAPONS.
Section 229 a. of the Atomic Energy Act of 1954 (42
U.S.C. 2278a(a)) is amended in the first sentence by in-
serting ‘‘or subject to the licensing authority of the Com-
mission or to certification by the Commission under this
Act or any other Act’’ before the period at the end.
SEC. 665. SABOTAGE OF NUCLEAR FACILITIES OR FUEL.
(a) IN GENERAL.—Section 236 a. of the Atomic En-
ergy Act of 1954 (42 U.S.C. 2284(a)) is amended—
(1) in paragraph (2), by striking ‘‘storage facil-
ity’’ and inserting ‘‘storage, treatment, or disposal
facility’’;
(2) in paragraph (3)—
(A) by striking ‘‘such a utilization facility’’
and inserting ‘‘a utilization facility licensed
under this Act’’; and
(B) by striking ‘‘or’’ at the end;
(3) in paragraph (4)—
263
(A) by striking ‘‘facility licensed’’ and in-
serting ‘‘, uranium conversion, or nuclear fuel
fabrication facility licensed or certified’’; and
(B) by striking the comma at the end and
inserting a semicolon; and
(4) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) any production, utilization, waste storage,
waste treatment, waste disposal, uranium enrich-
ment, uranium conversion, or nuclear fuel fabrica-
tion facility subject to licensing or certification
under this Act during construction of the facility, if
the destruction or damage caused or attempted to be
caused could adversely affect public health and safe-
ty during the operation of the facility;
‘‘(6) any primary facility or backup facility
from which a radiological emergency preparedness
alert and warning system is activated; or
‘‘(7) any radioactive material or other property
subject to regulation by the Nuclear Regulatory
Commission that, before the date of the offense, the
Nuclear Regulatory Commission determines, by
order or regulation published in the Federal Reg-
ister, is of significance to the public health and safe-
ty or to common defense and security,’’.
264
(b) PENALTIES.—Section 236 of the Atomic Energy
Act of 1954 (42 U.S.C. 2284) is amended by striking
‘‘$10,000 or imprisoned for not more than 20 years, or
both, and, if death results to any person, shall be impris-
oned for any term of years or for life’’ both places it ap-
pears and inserting ‘‘$1,000,000 or imprisoned for up to
life without parole’’.
SEC. 666. SECURE TRANSFER OF NUCLEAR MATERIALS.
(a) AMENDMENT.—Chapter 14 of the Atomic Energy
Act of 1954 (42 U.S.C. 2201–2210b) is amended by add-
ing at the end the following new section:
‘‘SEC. 170C. SECURE TRANSFER OF NUCLEAR MATERIALS.
‘‘a. The Nuclear Regulatory Commission shall estab-
lish a system to ensure that materials described in sub-
section b., when transferred or received in the United
States by any party pursuant to an import or export li-
cense issued pursuant to this Act, are accompanied by a
manifest describing the type and amount of materials
being transferred or received. Each individual receiving or
accompanying the transfer of such materials shall be sub-
ject to a security background check conducted by appro-
priate Federal entities.
‘‘b. Except as otherwise provided by the Commission
by regulation, the materials referred to in subsection a.
are byproduct materials, source materials, special nuclear
265
materials, high-level radioactive waste, spent nuclear fuel,
transuranic waste, and low-level radioactive waste (as de-
fined in section 2(16) of the Nuclear Waste Policy Act
of 1982 (42 U.S.C. 10101(16))).’’.
(b) REGULATIONS.—Not later than 1 year after the
date of the enactment of this Act, and from time to time
thereafter as it considers necessary, the Nuclear Regu-
latory Commission shall issue regulations identifying ra-
dioactive materials or classes of individuals that, con-
sistent with the protection of public health and safety and
the common defense and security, are appropriate excep-
tions to the requirements of section 170C of the Atomic
Energy Act of 1954, as added by subsection (a) of this
section.
(c) EFFECTIVE DATE.—The amendment made by
subsection (a) shall take effect upon the issuance of regu-
lations under subsection (b), except that the background
check requirement shall become effective on a date estab-
lished by the Commission.
(d) EFFECT ON OTHER LAW.—Nothing in this sec-
tion or the amendment made by this section shall waive,
modify, or affect the application of chapter 51 of title 49,
United States Code, part A of subtitle V of title 49,
United States Code, part B of subtitle VI of title 49,
United States Code, and title 23, United States Code.
266
(e) TABLE OF SECTIONS AMENDMENT.—The table of
sections for chapter 14 of the Atomic Energy Act of 1954
is amended by adding at the end the following new item:
‘‘Sec. 170C. Secure transfer of nuclear materials.’’.
SEC. 667. DEPARTMENT OF HOMELAND SECURITY CON-
SULTATION.
Before issuing a license for a utilization facility, the
Nuclear Regulatory Commission shall consult with the De-
partment of Homeland Security concerning the potential
vulnerabilities of the location of the proposed facility to
terrorist attack.
SEC. 668. AUTHORIZATION OF APPROPRIATIONS.
(a) IN GENERAL.—There are authorized to be appro-
priated such sums as are necessary to carry out this sub-
title and the amendments made by this subtitle.
(b) NUCLEAR REGULATORY COMMISSION USER FEES
AND ANNUAL CHARGES.—Section 6101 of the Omnibus
Budget Reconciliation Act of 1990 (42 U.S.C. 2214) is
amended—
(1) in subsection (a)—
(A) by striking ‘‘Except as provided in
paragraph (3), the’’ and inserting ‘‘The’’ in
paragraph (1); and
(B) by striking paragraph (3); and
(2) in subsection (c)—
267
(A) by striking ‘‘and’’ at the end of para-
graph (2)(A)(i);
(B) by striking the period at the end of
paragraph (2)(A)(ii) and inserting a semicolon;
(C) by adding at the end of paragraph
(2)(A) the following new clauses:
‘‘(iii) amounts appropriated to the
Commission for the fiscal year for imple-
mentation of section 3116 of the Ronald
W. Reagan National Defense Authorization
Act for Fiscal Year 2005; and
‘‘(iv) amounts appropriated to the
Commission for homeland security activi-
ties of the Commission for the fiscal year,
except for the costs of fingerprinting and
background checks required by section 149
of the Atomic Energy Act of 1954 (42
U.S.C. 2169) and the costs of conducting
security inspections.’’; and
(D) by amending paragraph (2)(B)(v) to
read as follows:
‘‘(v) 90 percent for fiscal year 2005
and each fiscal year thereafter.’’.
268
(c) REPEAL.—Section 7601 of the Consolidated Om-
nibus Budget Reconciliation Act of 1985 (42 U.S.C. 2213)
is repealed.
TITLE VII—VEHICLES AND
FUELS
Subtitle A—Existing Programs
SEC. 701. USE OF ALTERNATIVE FUELS BY DUAL-FUELED
VEHICLES.
Section 400AA(a)(3)(E) of the Energy Policy and
Conservation Act (42 U.S.C. 6374(a)(3)(E)) is amended
to read as follows:
‘‘(E)(i) Dual fueled vehicles acquired pursuant to this
section shall be operated on alternative fuels unless the
Secretary determines that an agency qualifies for a waiver
of such requirement for vehicles operated by the agency
in a particular geographic area in which—
‘‘(I) the alternative fuel otherwise required to
be used in the vehicle is not reasonably available to
retail purchasers of the fuel, as certified to the Sec-
retary by the head of the agency; or
‘‘(II) the cost of the alternative fuel otherwise
required to be used in the vehicle is unreasonably
more expensive compared to gasoline, as certified to
the Secretary by the head of the agency.
269
‘‘(ii) The Secretary shall monitor compliance with
this subparagraph by all such fleets and shall report annu-
ally to Congress on the extent to which the requirements
of this subparagraph are being achieved. The report shall
include information on annual reductions achieved from
the use of petroleum-based fuels and the problems, if any,
encountered in acquiring alternative fuels.’’.
SEC. 704. INCREMENTAL COST ALLOCATION.
Section 303(c) of the Energy Policy Act of 1992 (42
U.S.C. 13212(c)) is amended by striking ‘‘may’’ and in-
serting ‘‘shall’’.
SEC. 705. LEASE CONDENSATES.
(a) LEASE CONDENSATE FUELS.—Section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211) is
amended—
(1) in paragraph (2), by inserting ‘‘mixtures
containing 50 percent or more by volume of lease
condensate or fuels extracted from lease conden-
sate;’’ after ‘‘liquefied petroleum gas;’’;
(2) in paragraph (13), by striking ‘‘and’’ at the
end;
(3) in paragraph (14)—
(A) by inserting ‘‘mixtures containing 50
percent or more by volume of lease condensate
270
or fuels extracted from lease condensate,’’ after
‘‘liquefied petroleum gas,’’; and
(B) by striking the period and inserting ‘‘;
and’’;
(4) by adding at the end the following:
‘‘(15) the term ‘lease condensate’ means a mix-
ture, primarily of pentanes and heavier hydro-
carbons, that is recovered as a liquid from natural
gas in lease separation facilities.’’.
(b) LEASE CONDENSATE USE CREDITS.—
(1) IN GENERAL.—Title III of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211 et seq.) is amend-
ed by adding at the end the following:
‘‘SEC. 313. LEASE CONDENSATE USE CREDITS.
‘‘(a) IN GENERAL.—Subject to subsection (d), the
Secretary shall allocate 1 credit under this section to a
fleet or covered person for each qualifying volume of the
lease condensate component of fuel containing at least 50
percent lease condensate, or fuels extracted from lease
condensate, after the date of enactment of this section for
use by the fleet or covered person in vehicles owned or
operated by the fleet or covered person that weigh more
than 8,500 pounds gross vehicle weight rating.
‘‘(b) REQUIREMENTS.—A credit allocated under this
section—
271
‘‘(1) shall be subject to the same exceptions,
authority, documentation, and use of credits that are
specified for qualifying volumes of biodiesel in sec-
tion 312; and
‘‘(2) shall not be considered a credit under sec-
tion 508.
‘‘(c) REGULATION.—
‘‘(1) IN GENERAL.—Subject to subsection (d),
not later than January 1, 2006, after the collection
of appropriate information and data that consider
usage options, uses in other industries, products, or
processes, potential volume capacities, costs, air
emissions, and fuel efficiencies, the Secretary shall
issue a regulation establishing requirements and pro-
cedures for the implementation of this section.
‘‘(2) QUALIFYING
VOLUME.—The regulation
shall include a determination of an appropriate
qualifying volume for lease condensate, except that
in no case shall the Secretary determine that the
qualifying volume for lease condensate is less than
1,125 gallons.
‘‘(d) APPLICABILITY.—This section applies unless the
Secretary finds that the use of lease condensate as an al-
ternative fuel would adversely affect public health or safe-
ty or ambient air quality or the environment.’’.
272
(2) TABLE OF CONTENTS AMENDMENT.—The
table of contents of the Energy Policy Act of 1992
(42 U.S.C. prec. 13201) is amended by adding at
the end of the items relating to title III the fol-
lowing:
‘‘Sec. 313. Lease condensate use credits.’’.
(c) EMERGENCY EXEMPTION.—Section 301 of the
Energy Policy Act of 1992 (42 U.S.C. 13211) is amended
in paragraph (9)(E) by inserting before the semicolon at
the end ‘‘, including vehicles directly used in the emer-
gency repair of transmission lines and in the restoration
of electricity service following power outages, as deter-
mined by the Secretary’’.
SEC. 706. REVIEW OF ENERGY POLICY ACT OF 1992 PRO-
GRAMS.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this section, the Secretary of Energy
shall complete a study to determine the effect that titles
III, IV, and V of the Energy Policy Act of 1992 (42
U.S.C. 13211 et seq.) have had on—
(1) the development of alternative fueled vehicle
technology;
(2) the availability of that technology in the
market; and
(3) the cost of alternative fueled vehicles.
273
(b) TOPICS.—As part of the study under subsection
(a), the Secretary shall specifically identify—
(1) the number of alternative fueled vehicles ac-
quired by fleets or covered persons required to ac-
quire alternative fueled vehicles;
(2) the quantity, by type, of alternative fuel ac-
tually used in alternative fueled vehicles acquired by
fleets or covered persons;
(3) the quantity of petroleum displaced by the
use of alternative fuels in alternative fueled vehicles
acquired by fleets or covered persons;
(4) the direct and indirect costs of compliance
with requirements under titles III, IV, and V of the
Energy Policy Act of 1992 (42 U.S.C. 13211 et
seq.), including—
(A) vehicle acquisition requirements im-
posed on fleets or covered persons;
(B) administrative and recordkeeping ex-
penses;
(C) fuel and fuel infrastructure costs;
(D) associated training and employee ex-
penses; and
(E) any other factors or expenses the Sec-
retary determines to be necessary to compile re-
liable estimates of the overall costs and benefits
274
of complying with programs under those titles
for fleets, covered persons, and the national
economy;
(5) the existence of obstacles preventing compli-
ance with vehicle acquisition requirements and in-
creased use of alternative fuel in alternative fueled
vehicles acquired by fleets or covered persons; and
(6) the projected impact of amendments to the
Energy Policy Act of 1992 made by this title.
(c) REPORT.—Upon completion of the study under
this section, the Secretary shall submit to Congress a re-
port that describes the results of the study and includes
any recommendations of the Secretary for legislative or
administrative changes concerning the alternative fueled
vehicle requirements under titles III, IV and V of the En-
ergy Policy Act of 1992 (42 U.S.C. 13211 et seq.).
SEC. 707. REPORT CONCERNING COMPLIANCE WITH AL-
TERNATIVE FUELED VEHICLE PURCHASING
REQUIREMENTS.
Section 310(b)(1) of the Energy Policy Act of 1992
(42 U.S.C. 13218(b)(1)) is amended by striking ‘‘1 year
after the date of enactment of this subsection’’ and insert-
ing ‘‘February 15, 2006’’.
275
Subtitle B—Hybrid Vehicles, Ad-
vanced Vehicles, and Fuel Cell
Buses
PART 1—HYBRID VEHICLES
SEC. 711. HYBRID VEHICLES.
The Secretary of Energy shall accelerate efforts di-
rected toward the improvement of batteries and other re-
chargeable energy storage systems, power electronics, hy-
brid systems integration, and other technologies for use
in hybrid vehicles.
SEC. 712. HYBRID RETROFIT AND ELECTRIC CONVERSION
PROGRAM.
(a) ESTABLISHMENT.—The Administrator of the En-
vironmental Protection Agency, in consultation with the
Secretary, shall establish a program for awarding grants
on a competitive basis to entities for the installation of
hybrid retrofit and electric conversion technologies for
combustion engine vehicles.
(b) ELIGIBLE RECIPIENTS.—A grant shall be award-
ed under this section only—
(1) to a local or State governmental entity;
(2) to a for-profit or nonprofit corporation or
other person; or
276
(3) to 1 or more contracting entities that serv-
ice combustion engine vehicles for an entity de-
scribed in paragraph (1) or (2).
(c) AWARDS.—
(1) IN
GENERAL.—The Administrator shall
seek, to the maximum extent practicable, to ensure
a broad geographic distribution of grants under this
section.
(2) PREFERENCES.—In making awards of
grants under this section, the Administrator shall
give preference to proposals that—
(A) will achieve the greatest reductions in
emissions per proposal or per vehicle; or
(B) involve the use of emissions control
retrofit or conversion technology.
(d) CONDITIONS OF GRANT.—A grant shall be pro-
vided under this section on the conditions that—
(1) combustion engine vehicles on which hybrid
retrofit 
or 
conversion 
technology 
are 
to 
be
demonstrated—
(A) with the retrofit or conversion tech-
nology applied will achieve low-emission stand-
ards consistent with the Voluntary National
Low Emission Vehicle Program for Light-Duty
277
Vehicles and Light-Duty Trucks (40 CFR Part
86) without model year restrictions; and
(B) will be used for a minimum of 3 years;
(2) grant funds will be used for the purchase of
hybrid retrofit or conversion technology, including
State taxes and contract fees; and
(3) grant recipients will provide at least 15 per-
cent of the total cost of the retrofit or conversion,
including the purchase of hybrid retrofit or conver-
sion technology and all necessary labor for installa-
tion of the retrofit or conversion.
(e) VERIFICATION.—Not later than 90 days after the
date of enactment of this Act, the Administrator shall
publish in the Federal Register procedures to verify—
(1) the hybrid retrofit or conversion technology
to be demonstrated; and
(2) that grants are administered in accordance
with this section.
(f) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Administrator to
carry out this section, to remain available until
expended—
(1) $20,000,000 for fiscal year 2005;
(2) $35,000,000 for fiscal year 2006;
(3) $45,000,000 for fiscal year 2007; and
278
(4) such sums as are necessary for each of fis-
cal years 2008 and 2009.
SEC. 713. EFFICIENT HYBRID AND ADVANCED DIESEL VEHI-
CLES.
(a) PROGRAM.—The Administrator of the Environ-
mental Protection Agency shall establish a program to en-
courage domestic production and sales of efficient hybrid
and advanced diesel vehicles. The program shall include
grants to domestic automobile manufacturers to—
(1) encourage production of efficient hybrid and
advanced diesel vehicles; and
(2) provide consumer incentives, including dis-
counts and rebates, for the purchase of efficient hy-
brid and advanced diesel vehicles.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Administrator of
the Environmental Protection Agency for carrying out this
section $300,000,000 for each of the fiscal years 2006
through 2015.
PART 2—ADVANCED VEHICLES
SEC. 721. DEFINITIONS.
In this part:
(1) ALTERNATIVE FUELED VEHICLE.—
(A) IN GENERAL.—The term ‘‘alternative
fueled vehicle’’ means a vehicle propelled solely
279
on an alternative fuel (as defined in section 301
of the Energy Policy Act of 1992 (42 U.S.C.
13211)).
(B) EXCLUSION.—The term ‘‘alternative
fueled vehicle’’ does not include a vehicle that
the Secretary determines, by regulation, does
not yield substantial environmental benefits
over a vehicle operating solely on gasoline or
diesel derived from fossil fuels.
(2) FUEL CELL VEHICLE.—The term ‘‘fuel cell
vehicle’’ means a vehicle propelled by an electric
motor powered by a fuel cell system that converts
chemical energy into electricity by combining oxygen
(from air) with hydrogen fuel that is stored on the
vehicle or is produced onboard by reformation of a
hydrocarbon fuel. Such fuel cell system may or may
not include the use of auxiliary energy storage sys-
tems to enhance vehicle performance.
(3) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means a medium or heavy duty vehicle propelled
by an internal combustion engine or heat engine
using any combustible fuel and an onboard recharge-
able energy storage device.
280
(4) NEIGHBORHOOD ELECTRIC VEHICLE.—The
term ‘‘neighborhood electric vehicle’’ means a motor
vehicle that—
(A) meets the definition of a low-speed ve-
hicle (as defined in part 571 of title 49, Code
of Federal Regulations);
(B) meets the definition of a zero-emission
vehicle (as defined in section 86.1702–99 of
title 40, Code of Federal Regulations);
(C) meets the requirements of Federal
Motor Vehicle Safety Standard No. 500; and
(D) has a maximum speed of not greater
than 25 miles per hour.
(5) PILOT
PROGRAM.—The term ‘‘pilot pro-
gram’’ means the competitive grant program estab-
lished under section 722.
(6) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(7) ULTRA-LOW
SULFUR
DIESEL
VEHICLE.—
The term ‘‘ultra-low sulfur diesel vehicle’’ means a
vehicle manufactured in any of model years 2004
through 2006 powered by a heavy-duty diesel engine
that—
281
(A) is fueled by diesel fuel that contains
sulfur at not more than 15 parts per million;
and
(B) emits not more than the lesser of—
(i) for vehicles manufactured in model
years 2004 through 2006, 2.5 grams per
brake horsepower-hour of nonmethane hy-
drocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of par-
ticulate matter; or
(ii) the quantity of emissions of non-
methane hydrocarbons, oxides of nitrogen,
and particulate matter of the best-per-
forming technology of ultra-low sulfur die-
sel vehicles of the same class and applica-
tion that are commercially available.
SEC. 722. PILOT PROGRAM.
(a) ESTABLISHMENT.—The Secretary, in consulta-
tion with the Secretary of Transportation, shall establish
a competitive grant pilot program, to be administered
through the Clean Cities Program of the Department of
Energy, to provide not more than 30 geographically dis-
persed project grants to State governments, local govern-
ments, or metropolitan transportation authorities to carry
282
out a project or projects for the purposes described in sub-
section (b).
(b) GRANT PURPOSES.—A grant under this section
may be used for the following purposes:
(1) The acquisition of alternative fueled vehicles
or fuel cell vehicles, including—
(A) passenger vehicles (including neighbor-
hood electric vehicles); and
(B) motorized 2-wheel bicycles or other ve-
hicles for use by law enforcement personnel or
other State or local government or metropolitan
transportation authority employees.
(2) The acquisition of alternative fueled vehi-
cles, hybrid vehicles, or fuel cell vehicles, including—
(A) buses used for public transportation or
transportation to and from schools;
(B) delivery vehicles for goods or services;
and
(C) ground support vehicles at public air-
ports (including vehicles to carry baggage or
push or pull airplanes toward or away from ter-
minal gates).
(3) The acquisition of ultra-low sulfur diesel ve-
hicles.
283
(4) Installation or acquisition of infrastructure
necessary to directly support an alternative fueled
vehicle, fuel cell vehicle, or hybrid vehicle project
funded by the grant, including fueling and other
support equipment.
(5) Operation and maintenance of vehicles, in-
frastructure, and equipment acquired as part of a
project funded by the grant.
(c) APPLICATIONS.—
(1) REQUIREMENTS.—
(A) IN
GENERAL.—The Secretary shall
issue requirements for applying for grants
under the pilot program.
(B) MINIMUM REQUIREMENTS.—At a min-
imum, the Secretary shall require that an appli-
cation for a grant—
(i) be submitted by the head of a
State or local government or a metropoli-
tan transportation authority, or any com-
bination thereof, and a registered partici-
pant in the Clean Cities Program of the
Department of Energy; and
(ii) include—
(I) a description of the project
proposed in the application, including
284
how the project meets the require-
ments of this part;
(II) an estimate of the ridership
or degree of use of the project;
(III) an estimate of the air pollu-
tion emissions reduced and fossil fuel
displaced as a result of the project,
and a plan to collect and disseminate
environmental data, related to the
project to be funded under the grant,
over the life of the project;
(IV) a description of how the
project will be sustainable without
Federal assistance after the comple-
tion of the term of the grant;
(V) a complete description of the
costs of the project, including acquisi-
tion, 
construction, 
operation, 
and
maintenance costs over the expected
life of the project;
(VI) a description of which costs
of the project will be supported by
Federal assistance under this part;
and
285
(VII) documentation to the satis-
faction of the Secretary that diesel
fuel containing sulfur at not more
than 15 parts per million is available
for carrying out the project, and a
commitment by the applicant to use
such fuel in carrying out the project.
(2) PARTNERS.—An applicant under paragraph
(1) may carry out a project under the pilot program
in partnership with public and private entities.
(d) SELECTION CRITERIA.—In evaluating applica-
tions under the pilot program, the Secretary shall—
(1) consider each applicant’s previous experi-
ence with similar projects; and
(2) give priority consideration to applications
that—
(A) are most likely to maximize protection
of the environment;
(B) demonstrate the greatest commitment
on the part of the applicant to ensure funding
for the proposed project and the greatest likeli-
hood that the project will be maintained or ex-
panded after Federal assistance under this part
is completed; and
286
(C) exceed the minimum requirements of
subsection (c)(1)(B)(ii).
(e) PILOT PROJECT REQUIREMENTS.—
(1) MAXIMUM
AMOUNT.—The Secretary shall
not provide more than $15,000,000 in Federal as-
sistance under the pilot program to any applicant.
(2) COST SHARING.—The Secretary shall not
provide more than 50 percent of the cost, incurred
during the period of the grant, of any project under
the pilot program.
(3) MAXIMUM PERIOD OF GRANTS.—The Sec-
retary shall not fund any applicant under the pilot
program for more than 5 years.
(4) DEPLOYMENT
AND
DISTRIBUTION.—The
Secretary shall seek to the maximum extent prac-
ticable to ensure a broad geographic distribution of
project sites.
(5) TRANSFER OF INFORMATION AND KNOWL-
EDGE.—The Secretary shall establish mechanisms to
ensure that the information and knowledge gained
by participants in the pilot program are transferred
among the pilot program participants and to other
interested parties, including other applicants that
submitted applications.
(f) SCHEDULE.—
287
(1) PUBLICATION.—Not later than 90 days
after the date of enactment of this Act, the Sec-
retary shall publish in the Federal Register, Com-
merce Business Daily, and elsewhere as appropriate,
a request for applications to undertake projects
under the pilot program. Applications shall be due
not later than 180 days after the date of publication
of the notice.
(2) SELECTION.—Not later than 180 days after
the date by which applications for grants are due,
the Secretary shall select by competitive, peer re-
viewed proposal, all applications for projects to be
awarded a grant under the pilot program.
(g) LIMIT ON FUNDING.—The Secretary shall pro-
vide not less than 20 nor more than 25 percent of the
grant funding made available under this section for the
acquisition of ultra-low sulfur diesel vehicles.
SEC. 723. REPORTS TO CONGRESS.
(a) INITIAL REPORT.—Not later than 60 days after
the date on which grants are awarded under this part,
the Secretary shall submit to Congress a report
containing—
(1) an identification of the grant recipients and
a description of the projects to be funded;