260
(d) FEDERAL GUIDANCE.—Section 132 of the Public
Utility Regulatory Policies Act of 1978 (16 U.S.C. 2643)
is amended by adding the following at the end thereof:
‘‘(d) DEMAND RESPONSE.—The Secretary shall be
responsible for each of the following:
‘‘(1) Educating consumers on the availability,
advantages and benefits of advanced metering and
communications technologies including the funding
of demonstration or pilot projects.
‘‘(2) Working with States, utilities, other energy
providers and advanced metering and communica-
tions experts to identify and address barriers to the
adoption of demand response programs.
‘‘(3) Within 6 months of enactment, provide the
Congress with a report that identifies and quantifies
the national benefits of demand response and pro-
vides policy recommendations as to how to achieve
specific levels of such benefits by January 1, 2005.’’.
(e) DEMAND RESPONSE AND REGIONAL COORDINA-
TION.—
(1) POLICY.—It is the policy of the United
States to encourage States to coordinate, on a re-
gional basis, State energy policies to provide reliable
and affordable demand response services to the pub-
lic.
261
(2) TECHNICAL ASSISTANCE.—The Secretary of
Energy shall provide technical assistance to States
and regional organizations formed by two or more
States to assist them in—
(A) identifying the areas with the greatest
demand response potential;
(B) identifying and resolving problems in
transmission and distribution networks, includ-
ing through the use of demand response; and
(C) developing plans and programs to use
demand response to respond to peak demand or
emergency needs.
(3) REPORT.—The Federal Energy Regulatory
Commission shall prepare and publish an annual re-
port, by appropriate region, that assesses demand
response resources, including those available from all
consumer classes, and which identifies and reviews
each of the following:
(A) Saturation and penetration rate of ad-
vanced 
meters 
and 
communications 
tech-
nologies, devices and systems.
(B) Existing demand response programs
and time-based rate programs.
262
(C) The annual resource contribution of
demand resources, including the prior year and
following years.
(D) The potential for demand response as
a quantifiable, reliable resource for regional
planning purposes.
(E) Steps taken to ensure that, in regional
transmission planning and operations, that de-
mand resources are provided equitable treat-
ment as a quantifiable, reliable resource relative
to the resource obligations of any load-serving
entity, transmission provider or transmitting
party.
(f) COST RECOVERY OF DEMAND RESPONSE DE-
VICES.—It is the policy of the United States that time-
based pricing and other forms of demand response, where-
by electricity customers are provided with electricity price
signals and the ability to benefit by responding to them,
shall be encouraged and the deployment of such tech-
nology and devices that enable electricity customers to
participate in such pricing and demand response systems
shall be facilitated. It is further the policy of the United
States that the benefits of such demand response that ac-
crue to those not deploying such technology and devices,
263
but who are part of the same regional electricity entity,
shall be recognized.
Subtitle F—Renewable Energy
SEC. 16071. NET METERING.
(a) ADOPTION OF STANDARD.—Section 111(d) of the
Public Utility Regulatory Policies Act of 1978 (16 U.S.C.
2621(d)) is amended by adding at the end the following:
‘‘(14) NET METERING.—(A) Each electric util-
ity shall make available upon request net metering
service to any electric consumer that the electric
utility serves.
‘‘(B) For purposes of implementing this para-
graph, any reference contained in this section to the
date of enactment of the Public Utility Regulatory
Policies Act of 1978 shall be deemed to be a ref-
erence to the date of enactment of this paragraph.
‘‘(C) Notwithstanding subsections (b) and (c) of
section 112, each State regulatory authority shall
consider and make a determination concerning
whether it is appropriate to implement the standard
set out in subparagraph (A) not later than 1 year
after the date of enactment of this paragraph.’’.
(b) SPECIAL RULES FOR NET METERING.—Section
115 of the Public Utility Regulatory Policies Act of 1978
264
(16 U.S.C. 2625) is amended by adding at the end the
following:
‘‘(l) NET METERING.—In undertaking the consider-
ation and making the determination under section 111
with respect to the standard concerning net metering es-
tablished by section 111(d)(14), the term ‘net metering
service’ shall mean a service provided in accordance with
the following standards:
‘‘(1) 
RATES
AND
CHARGES.—An 
electric
utility—
‘‘(A) shall charge the owner or operator of
an on-site generating facility rates and charges
that are identical to those that would be
charged other electric consumers of the electric
utility in the same rate class; and
‘‘(B) shall not charge the owner or oper-
ator of an on-site generating facility any addi-
tional standby, capacity, interconnection, or
other rate or charge.
‘‘(2) MEASUREMENT.—An electric utility that
sells electric energy to the owner or operator of an
on-site generating facility shall measure the quantity
of electric energy produced by the on-site facility
and the quantity of electric energy consumed by the
owner or operator of an on-site generating facility
265
during a billing period in accordance with normal
metering practices.
‘‘(3) ELECTRIC ENERGY SUPPLIED EXCEEDING
ELECTRIC ENERGY GENERATED.—If the quantity of
electric energy sold by the electric utility to an on-
site generating facility exceeds the quantity of elec-
tric energy supplied by the on-site generating facility
to the electric utility during the billing period, the
electric utility may bill the owner or operator for the
net quantity of electric energy sold, in accordance
with normal metering practices.
‘‘(4) ELECTRIC ENERGY GENERATED EXCEED-
ING ELECTRIC ENERGY SUPPLIED.—If the quantity
of electric energy supplied by the on-site generating
facility to the electric utility exceeds the quantity of
electric energy sold by the electric utility to the on-
site generating facility during the billing period—
‘‘(A) the electric utility may bill the owner
or operator of the on-site generating facility for
the appropriate charges for the billing period in
accordance with paragraph (2); and
‘‘(B) the owner or operator of the on-site
generating facility shall be credited for the ex-
cess kilowatt-hours generated during the billing
266
period, with the kilowatt-hour credit appearing
on the bill for the following billing period.
‘‘(5) SAFETY
AND
PERFORMANCE
STAND-
ARDS.—An eligible on-site generating facility and
net metering system used by an electric consumer
shall meet all applicable safety, performance, reli-
ability, and interconnection standards established by
the National Electrical Code, the Institute of Elec-
trical and Electronics Engineers, and Underwriters
Laboratories.
‘‘(6) ADDITIONAL CONTROL AND TESTING RE-
QUIREMENTS.—The Commission, after consultation
with State regulatory authorities and nonregulated
electric utilities and after notice and opportunity for
comment, may adopt, by rule, additional control and
testing requirements for on-site generating facilities
and net metering systems that the Commission de-
termines are necessary to protect public safety and
system reliability.
‘‘(7) DEFINITIONS.—For purposes of this sub-
section:
‘‘(A) The term ‘eligible on-site generating
facility’ means—
‘‘(i) a facility on the site of a residen-
tial electric consumer with a maximum
267
generating capacity of 10 kilowatts or less
that is fueled by solar energy, wind energy,
or fuel cells; or
‘‘(ii) a facility on the site of a com-
mercial electric consumer with a maximum
generating capacity of 500 kilowatts or
less that is fueled solely by a renewable en-
ergy resource, landfill gas, or a high effi-
ciency system.
‘‘(B) The term ‘renewable energy resource’
means solar, wind, biomass, or geothermal en-
ergy.
‘‘(C) The term ‘high efficiency system’
means service fuel cells or combined heat and
power.
‘‘(D) The term ‘net metering’ means serv-
ice to an electric consumer under which electric
energy generated by that electric consumer
from an eligible on-site generating facility and
delivered to the local distribution facilities may
be used to offset electric energy provided by the
electric utility to the electric consumer during
the applicable billing period.’’.
268
SEC. 16072. RENEWABLE ENERGY PRODUCTION INCENTIVE.
(a) INCENTIVE PAYMENTS.—Section 1212(a) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(a)) is
amended by striking ‘‘and which satisfies’’ and all that
follows through ‘‘Secretary shall establish.’’ and inserting
‘‘. If there are insufficient appropriations to make full pay-
ments for electric production from all qualified renewable
energy facilities in any given year, the Secretary shall as-
sign 60 percent of appropriated funds for that year to fa-
cilities that use solar, wind, geothermal, or closed-loop
(dedicated energy crops) biomass technologies to generate
electricity, and assign the remaining 40 percent to other
projects. The Secretary may, after transmitting to the
Congress an explanation of the reasons therefor, alter the
percentage requirements of the preceding sentence.’’.
(b) QUALIFIED RENEWABLE ENERGY FACILITY.—
Section 1212(b) of the Energy Policy Act of 1992 (42
U.S.C. 13317(b)) is amended—
(1) by striking ‘‘a State or any political’’ and
all that follows through ‘‘nonprofit electrical cooper-
ative’’ and inserting ‘‘a not-for-profit electric cooper-
ative, a public utility described in section 115 of the
Internal Revenue Code of 1986, a State, Common-
wealth, territory, or possession of the United States
or the District of Columbia, or a political subdivision
269
thereof, or an Indian tribal government of subdivi-
sion thereof,’’; and
(2) by inserting ‘‘landfill gas,’’ after ‘‘wind, bio-
mass,’’.
(c) ELIGIBILITY WINDOW.—Section 1212(c) of the
Energy Policy Act of 1992 (42 U.S.C. 13317(c)) is
amended by striking ‘‘during the 10-fiscal year period be-
ginning with the first full fiscal year occurring after the
enactment of this section’’ and inserting ‘‘after October
1, 2003, and before October 1, 2013’’.
(d) AMOUNT OF PAYMENT.—Section 1212(e)(1) of
the Energy Policy Act of 1992 (42 U.S.C. 13317(e)(1))
is amended by inserting ‘‘landfill gas,’’ after ‘‘wind, bio-
mass,’’.
(e) SUNSET.—Section 1212(f) of the Energy Policy
Act of 1992 (42 U.S.C. 13317(f)) is amended by striking
‘‘the expiration of’’ and all that follows through ‘‘of this
section’’ and inserting ‘‘September 30, 2023’’.
(f) AUTHORIZATION OF APPROPRIATIONS.—Section
1212(g) of the Energy Policy Act of 1992 (42 U.S.C.
13317(g)) is amended to read as follows:
‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—Subject to paragraph (2),
there are authorized to be appropriated such sums
270
as may be necessary to carry out this section for fis-
cal years 2003 through 2023.
‘‘(2) AVAILABILITY OF FUNDS.—Funds made
available under paragraph (1) shall remain available
until expended.’’.
SEC. 16073. RENEWABLE ENERGY ON FEDERAL LANDS.
(a) REPORT TO CONGRESS.—Within 24 months after
the date of enactment of this section, the Secretary of the
Interior, in cooperation with the Secretary of Agriculture,
shall develop and report to the Congress recommendations
on opportunities to develop renewable energy on public
lands under the jurisdiction of the Secretary of the Inte-
rior and National Forest System lands under the jurisdic-
tion of the Secretary of Agriculture. The report shall
include—
(1) 5-year plans developed by the Secretary of
the Interior and the Secretary of Agriculture, re-
spectively, for encouraging the development of wind
and solar energy consistent with applicable law and
management plans; and
(2) an analysis of—
(A) the use of rights-of-ways, leases, or
other methods to develop wind and solar energy
on such lands;
271
(B) the anticipated benefits of grants,
loans, tax credits, or other provisions to pro-
mote wind and solar energy development on
such lands; and
(C) any issues that the Secretary of the
Interior or the Secretary of Agriculture have
encountered in managing wind or solar energy
projects on such lands, or believe are likely to
arise in relation to the development of wind or
solar energy on such lands;
(3) a list, developed in consultation with the
Secretary of Energy and the Secretary of Defense,
of lands under the jurisdiction of the Department of
Energy or Defense that would be suitable for devel-
opment for wind or solar energy, and any rec-
ommended statutory and regulatory mechanisms for
such development; and
(4) any recommendations pertaining to the
issues addressed in the report.
(b) NATIONAL ACADEMY OF SCIENCES STUDY.—
(1) IN
GENERAL.—Within 90 days after the
date of the enactment of this Act, the Secretary of
the Interior shall contract with the National Acad-
emy of Sciences to—
272
(A) study the potential for the development
of wind, solar, and ocean energy on the Outer
Continental Shelf;
(B) assess existing Federal authorities for
the development of such resources; and
(C) recommend statutory and regulatory
mechanisms for such development.
(2) TRANSMITTAL OF RESULTS.—The results of
the study shall be transmitted to the Congress with-
in 24 months after the date of the enactment of this
Act.
SEC. 16074. ASSESSMENT OF RENEWABLE ENERGY RE-
SOURCES.
(a) RESOURCE ASSESSMENT.—Not later than 3
months after the date of enactment of this Act, and each
year thereafter, the Secretary of Energy shall review the
available assessments of renewable energy resources avail-
able within the United States, including solar, wind, bio-
mass, ocean, geothermal, and hydroelectric energy re-
sources, and undertake new assessments as necessary,
taking into account changes in market conditions, avail-
able technologies, and other relevant factors.
(b) CONTENTS OF REPORTS.—Not later than 1 year
after the date of enactment of this Act, and each year
thereafter, the Secretary shall publish a report based on
273
the assessment under subsection (a). The report shall
contain—
(1) a detailed inventory describing the available
amount and characteristics of the renewable energy
resources; and
(2) such other information as the Secretary be-
lieves would be useful in developing such renewable
energy resources, including descriptions of sur-
rounding terrain, population and load centers, near-
by energy infrastructure, location of energy and
water resources, and available estimates of the costs
needed to develop each resource, together with an
identification of any barriers to providing adequate
transmission for remote sources of renewable energy
resources to current and emerging markets, rec-
ommendations for removing or addressing such bar-
riers, and ways to provide access to the grid that do
not unfairly disadvantage renewable or other energy
producers.
Subtitle G—Market Transparency,
Round Trip Trading Prohibi-
tion, and Enforcement
SEC. 16081. MARKET TRANSPARENCY RULES.
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof:
274
‘‘SEC. 219. MARKET TRANSPARENCY RULES.
‘‘(a) COMMISSION RULES.—Not later than 180 days
after the date of enactment of this section, the Commis-
sion shall issue rules establishing an electronic information
system to provide the Commission and the public with ac-
cess to such information as is necessary or appropriate
to facilitate price transparency and participation in mar-
kets subject to the Commission’s jurisdiction. Such sys-
tems shall provide information about the availability and
market price of sales of electric energy at wholesale in
interstate commerce and transmission of electric energy
in interstate commerce to the Commission, State commis-
sions, buyers and sellers of wholesale electric energy, users
of transmission services, and the public on a timely basis.
The Commission shall have authority to obtain such infor-
mation from any person, and any entity described in sec-
tion 201(f), who sells electric energy at wholesale in inter-
state commerce or provides transmission services in inter-
state commerce.
‘‘(b) EXEMPTIONS.—The Commission shall exempt
from disclosure information it determines would, if dis-
closed, (1) be detrimental to the operation of an effective
market; or (2) jeopardize system security. This section
shall not apply to an entity described in section
212(k)(2)(B) with respect to transactions for the purchase
275
or sale of wholesale electric energy and transmission serv-
ices within the area described in section 212(k)(2)(A).’’.
SEC. 16082. PROHIBITION ON ROUND TRIP TRADING.
Part II of the Federal Power Act is amended by add-
ing the following new section at the end thereof:
‘‘SEC. 220. PROHIBITION ON ROUND TRIP TRADING.
‘‘(a) PROHIBITION.—It shall be a violation of this Act
for any person, and any entity described in section 201(f),
willfully and knowingly to enter into any contract or other
arrangement to execute a round-trip trade for the pur-
chase or sale of electric energy at wholesale.
‘‘(b) DEFINITION OF ROUND-TRIP TRADE.—For the
purposes of this section, the term ‘round-trip trade’ means
a transaction, or combination of transactions, in which a
person or other entity—
‘‘(1) enters into a contract or other arrange-
ment to purchase from, or sell to, any other person
or other entity electric energy at wholesale;
‘‘(2) simultaneously with entering into the con-
tract described in paragraph (1), arranges a finan-
cially offsetting trade with such other person or enti-
ty for the same quantity of electric energy so that,
collectively, the purchase and sale transactions in
themselves result in no financial gain or loss; and
276
‘‘(3) has a specific intent to distort reported
revenues, trading volumes, or prices.’’.
SEC. 16083. CONFORMING CHANGES.
Section 201(e) of the Federal Power Act is amended
by striking ‘‘or 212’’ and inserting ‘‘212, 215, 216, 217,
218, 219, or 220’’. Section 201(b)(2) of such Act is
amended by striking ‘‘and 212’’ and inserting ‘‘212, 215,
216, 217, 218, 219, and 220’’.
SEC. 16084. ENFORCEMENT.
(a) COMPLAINTS.—Section 306 of the Federal Power
Act (16 U.S.C. 825e) is amended by—
(1) inserting ‘‘electric utility,’’ after ‘‘Any per-
son,’’; and
(2) inserting ‘‘, transmitting utility,’’ after ‘‘li-
censee’’ each place it appears.
(b) REVIEW
OF
COMMISSION
ORDERS.—Section
313(a) of the Federal Power Act (16 U.S.C. 8251) is
amended by inserting ‘‘electric utility,’’ after ‘‘person,’’ in
the first place it appears and by striking ‘‘any person un-
less such person’’ and inserting ‘‘any entity unless such
entity’’.
(c) CRIMINAL PENALTIES.—Section 316 of the Fed-
eral Power Act (16 U.S.C. 825o) is amended—
277
(1) in subsection (a), by striking ‘‘$5,000’’ and
inserting ‘‘$1,000,000’’, and by striking ‘‘two years’’
and inserting ‘‘five years’’;
(2) in subsection (b), by striking ‘‘$500’’ and
inserting ‘‘$25,000’’; and
(3) by striking subsection (c).
(d) CIVIL PENALTIES.—Section 316A of the Federal
Power Act (16 U.S.C. 825–1) is amended—
(1) in subsections (a) and (b), by striking ‘‘sec-
tion 211, 212, 213, or 214’’ each place it appears
and inserting ‘‘Part II’’; and
(2) in subsection (b), by striking ‘‘$10,000’’
and inserting ‘‘$1,000,000’’.
Subtitle H—Consumer Protections
SEC. 16091. REFUND EFFECTIVE DATE.
Section 206(b) of the Federal Power Act (16 U.S.C.
824e(b)) is amended by—
(1) striking ‘‘the date 60 days after the filing
of such complaint nor later than 5 months after the
expiration of such 60-day period’’ in the second sen-
tence and inserting ‘‘the date of the filing of such
complaint nor later than 5 months after the filing of
such complaint’’;
(2) striking ‘‘60 days after’’ in the third sen-
tence and inserting ‘‘of’’;
278
(3) striking ‘‘expiration of such 60-day period’’
in the third sentence and inserting ‘‘publication
date’’; and
(4) in the fifth sentence after ‘‘rendered by the’’
insert ‘‘date 60 days after the’’.
SEC. 16092. JURISDICTION OVER INTERSTATE SALES.
(a) SCOPE OF AUTHORITY.—Section 206 of the Fed-
eral Power Act (16 U.S.C. 824e) is amended by adding
the following new subsection at the end thereof:
‘‘(e)(1) If an entity that is not a public utility (includ-
ing an entity referred to in section 201(f)) voluntarily
makes a spot market sale of electric energy and such sale
violates Commission rules in effect at the time of such
sale, such entity shall be subject to the Commission’s re-
fund authority under this section with respect to such vio-
lation.
‘‘(2) This section shall not apply to any entity that
is either—
‘‘(A) an entity described in section 201(f); or
‘‘(B) a rural electric cooperative,
that does not sell more than 4,000,000 megawatt hours
of electricity per year.
‘‘(3) For purposes of this subsection, the term ‘spot
market sale’ means an agreement for the sale of electric
energy at wholesale in interstate commerce that is for 24
279
hours or less and that is entered into the day of, or the
day prior to, delivery.’’.
(b) CONFORMING AMENDMENTS.—(1) Section 206 of
the Federal Power Act (16 U.S.C. 824e) is amended as
follows:
(A) In subsection (b), in the seventh sentence,
by striking ‘‘the public utility to make’’.
(B) In the first sentence of subsection (a), by
striking ‘‘hearing had’’ and inserting ‘‘hearing held’’.
(2) Section 201(b)(2) of such Act (16 U.S.C.
824(b)(2)) is amended as follows:
(A) In the first sentence by striking ‘‘sections
210’’ and inserting ‘‘sections 206(f), 210’’.
(B) In the second sentence by striking ‘‘section
210’’ and inserting ‘‘section 206(f), 210,’’.
(3) Section 201(e) of the Federal Power Act is
amended by striking ‘‘section 210’’ and inserting ‘‘section
206(f), 210’’.
(c) UNIFORM INVESTIGATION AUTHORITY.—Section
307(a) of the Federal Power Act (16 U.S.C. 825f(a)) is
amended as follows:
(1) By inserting ‘‘, electric utility, transmitting
utility, or other entity’’ after ‘‘person’’ each time it
appears.
280
(2) By striking the period at the end of the
first sentence and inserting the following: ‘‘or in ob-
taining information about the sale of electric energy
at wholesale in interstate commerce and the trans-
mission of electric energy in interstate commerce.’’.
(d) SANCTITY OF CONTRACT.—(1) The Federal En-
ergy Regulatory Commission shall have no authority to ab-
rogate or modify any provision of a contract, except upon
a finding, after notice and opportunity for a hearing, that
such action is necessary to protect the public interest, un-
less such contract expressly provides for a different stand-
ard of review.
(2) For purposes of this subsection, a contract is any
agreement, in effect and subject to the jurisdiction of the
Commission—
(A) under section 4 of the Natural Gas Act or
section 205 of the Federal Power Act; and
(B) that is not for sales in an organized ex-
change or auction spot market.
(3) This subsection shall not apply to any contract
executed before the date of enactment of this section un-
less such contract is an interconnection agreement, nor
shall this subsection affect the outcome in any proceeding
regarding any contract for sales of electric power executed
before the date of enactment of this section.
281
SEC. 16093. CONSUMER PRIVACY.
(a) IN GENERAL.—The Federal Trade Commission
shall issue rules protecting the privacy of electric con-
sumers from the disclosure of consumer information ob-
tained in connection with the sale or delivery of electric
energy to electric consumers. The Federal Trade Commis-
sion shall proceed in accordance with section 553 of title
5, United States Code, when prescribing a rule under this
section.
(b) STATE AUTHORITY.—If the Federal Trade Com-
mission determines that a State’s regulations provide
equivalent or greater protection than the provisions of this
section, such State regulations shall apply in that State
in lieu of the regulations issued by the Commission under
this section.
SEC. 16094. UNFAIR TRADE PRACTICES.
(a) SLAMMING.—The Federal Trade Commission
shall issue rules prohibiting the change of selection of an
electric utility except with the informed consent of the
electric consumer or if approved by the appropriate State
regulatory authority.
(b) CRAMMING.—The Federal Trade Commission
shall issue rules prohibiting the sale of goods and services
to an electric consumer unless expressly authorized by law
or the electric consumer.
282
(c) RULEMAKING.—The Federal Trade Commission
shall proceed in accordance with section 553 of title 5,
United States Code, when prescribing a rule under this
section.
(d) STATE AUTHORITY.—If the Federal Trade Com-
mission determines that a State’s regulations provide
equivalent or greater protection than the provisions of this
section, such State regulations shall apply in that State
in lieu of the regulations issued by the Commission under
this section.
Subtitle I—Merger Review Reform
and Accountability
SEC. 16101. MERGER REVIEW REFORM AND ACCOUNT-
ABILITY.
(a) MERGER REVIEW REFORM.—Within 180 days
after the date of enactment of this Act, the Secretary of
Energy, in consultation with the Federal Energy Regu-
latory Commission and the Department of Justice, shall
prepare, and transmit to the Committee on Energy and
Commerce of the House of Representatives and the Com-
mittee on Energy and Natural Resources of the Senate
each of the following:
(1) A study of the extent to which the authori-
ties vested in the Federal Energy Regulatory Com-
283
mission under section 203 of the Federal Power Act
are duplicative of authorities vested in—
(A) other agencies of Federal and State
government; and
(B) the Federal Energy Regulatory Com-
mission, including under sections 205 and 206
of the Federal Power Act.
(2) Recommendations on reforms to the Fed-
eral Power Act that would eliminate any unneces-
sary duplication in the exercise of regulatory author-
ity or unnecessary delays in the approval (or dis-
approval) of applications for the sale, lease, or other
disposition of public utility facilities.
(b) MERGER REVIEW ACCOUNTABILITY.—Not later
than 1 year after the date of enactment of this Act and
annually thereafter, with respect to all orders issued with-
in the preceding year that impose a condition on a sale,
lease, or other disposition of public utility facilities under
section 203(b) of the Federal Power Act, the Federal En-
ergy Regulatory Commission shall transmit a report to the
Committee on Energy and Commerce of the House of
Representatives and the Committee on Energy and Nat-
ural Resources of the Senate explaining each of the fol-
lowing:
(1) The condition imposed.
284
(2) Whether the Commission could have im-
posed such condition by exercising its authority
under any provision of the Federal Power Act other
than under section 203(b).
(3) If the Commission could not have imposed
such condition other than under section 203(b), why
the Commission determined that such condition was
consistent with the public interest.
Subtitle J—Study of Economic
Dispatch
SEC. 16111. STUDY ON THE BENEFITS OF ECONOMIC DIS-
PATCH.
(a) STUDY.—The Secretary of Energy, in coordina-
tion and consultation with the States, shall conduct a
study on—
(1) the procedures currently used by electric
utilities to perform economic dispatch;
(2) identifying possible revisions to those proce-
dures to improve the ability of nonutility generation
resources to offer their output for sale for the pur-
pose of inclusion in economic dispatch; and
(3) the potential benefits to residential, com-
mercial, and industrial electricity consumers nation-
ally and in each state if economic dispatch proce-
dures were revised to improve the ability of non-
285
utility generation resources to offer their output for
inclusion in economic dispatch.
(b) DEFINITION.—The term ‘‘economic dispatch’’
when used in this section means the operation of genera-
tion facilities to produce energy at the lowest cost to reli-
ably serve consumers, recognizing any operational limits
of generation and transmission facilities.
(c) REPORT TO CONGRESS AND THE STATES.—Not
later than 90 days after the date of enactment of this Act,
and on a yearly basis following, the Secretary of Energy
shall submit a report to the Congress and the States on
the results of the study conducted under subsection (a),
including recommendations to the Congress and the States
for any suggested legislative or regulatory changes.
TITLE VII—MOTOR FUELS
Subtitle A—General Provisions
SEC. 17101. RENEWABLE CONTENT OF MOTOR VEHICLE
FUEL.
(a) IN GENERAL.—Section 211 of the Clean Air Act
(42 U.S.C. 7545) is amended—
(1) by redesignating subsection (o) as sub-
section (q); and
(2) by inserting after subsection (n) the fol-
lowing:
‘‘(o) RENEWABLE FUEL PROGRAM.—
286
‘‘(1) DEFINITIONS.—In this section:
‘‘(A) CELLULOSIC
BIOMASS
ETHANOL.—
The term ‘cellulosic biomass ethanol’ means
ethanol derived from any lignocellulosic or
hemicellulosic matter that is available on a re-
newable or recurring basis, including—
‘‘(i) dedicated energy crops and trees;
‘‘(ii) wood and wood residues;
‘‘(iii) plants;
‘‘(iv) grasses;
‘‘(v) agricultural residues;
‘‘(vi) fibers;
‘‘(vii) animal wastes, including poultry
fats and poultry wastes, and other waste
materials; and
‘‘(viii) municipal solid waste.
‘‘(B) RENEWABLE FUEL.—
‘‘(i) IN GENERAL.—The term ‘renew-
able fuel’ means motor vehicle fuel that—
‘‘(I)(aa) is produced from grain,
starch, oilseeds, or other biomass; or
‘‘(bb) is natural gas produced
from a biogas source, including a
landfill, sewage waste treatment plant,
287
feedlot, or other place where decaying
organic material is found; and
‘‘(II) is used to replace or reduce
the quantity of fossil fuel present in a
fuel mixture used to operate a motor
vehicle.
‘‘(ii) INCLUSION.—The term ‘renew-
able fuel’ includes cellulosic biomass eth-
anol and biodiesel (as defined in section
312(f) of the Energy Policy Act of 1992
(42 U.S.C. 13220(f)) and any blending
components derived from renewable fuel
(provided that only the renewable fuel por-
tion of any such blending component shall
be considered part of the applicable volume
under the renewable fuel program estab-
lished by this subsection).
‘‘(C) SMALL REFINERY.—The term ‘small
refinery’ means a refinery for which average ag-
gregate daily crude oil throughput for the cal-
endar year (as determined by dividing the ag-
gregate throughput for the calendar year by the
number of days in the calendar year) does not
exceed 75,000 barrels.
‘‘(2) RENEWABLE FUEL PROGRAM.—
288
‘‘(A) IN GENERAL.—Not later than 1 year
from enactment of this provision, the Adminis-
trator shall promulgate regulations ensuring
that gasoline sold or dispensed to consumers in
the contiguous United States, on an annual av-
erage basis, contains the applicable volume of
renewable fuel as specified in subparagraph
(B). Regardless of the date of promulgation,
such regulations shall contain compliance provi-
sions for refiners, blenders, and importers, as
appropriate, to ensure that the requirements of
this section are met, but shall not restrict where
renewables can be used, or impose any per-gal-
lon obligation for the use of renewables. If the
Administrator does not promulgate such regula-
tions, the applicable percentage, on a volume
percentage of gasoline basis, shall be 1.62 in
2005.
‘‘(B) APPLICABLE VOLUME.—
‘‘(i) CALENDAR YEARS 2005 THROUGH
2015.—For the purpose of subparagraph
(A), the applicable volume for any of cal-
endar years 2005 through 2015 shall be
determined in accordance with the fol-
lowing table:
Applicable volume of renewable fuel
289
‘‘Calendar year:
(In billions of gallons)
2005 .....................................................................................
2.7
2006 .....................................................................................
2.7
2007 .....................................................................................
2.9
2008 .....................................................................................
2.9
2009 .....................................................................................
3.4
2010 .....................................................................................
3.4
2011 .....................................................................................
3.4
2012 .....................................................................................
4.2
2013 .....................................................................................
4.2
2014 .....................................................................................
4.2
2015 .....................................................................................
5.0.
‘‘(ii) CALENDAR
YEAR
2016
AND
THEREAFTER.—For the purpose of sub-
paragraph (A), the applicable volume for
calendar year 2016 and each calendar year
thereafter shall be equal to the product ob-
tained by multiplying—
‘‘(I) the number of gallons of
gasoline that the Administrator esti-
mates will be sold or introduced into
commerce in the calendar year; and
‘‘(II) the ratio that—
‘‘(aa) 5.0 billion gallons of
renewable fuels; bears to
‘‘(bb) the number of gallons
of gasoline sold or introduced
into commerce in calendar year
2015.
‘‘(3) APPLICABLE
PERCENTAGES.—Not later
than October 31 of each calendar year after 2002,
the Administrator of the Energy Information Ad-
290
ministration shall provide the Administrator an esti-
mate of the volumes of gasoline sales in the United
States for the coming calendar year. Based on such
estimates, the Administrator shall, by November 30
of each calendar year after 2003, determine and
publish in the Federal Register, the renewable fuel
obligation, on a volume percentage of gasoline basis,
applicable to refiners, blenders, and importers, as
appropriate, for the coming calendar year, to ensure
that the requirements of paragraph (2) are met. For
each calendar year, the Administrator shall establish
a single applicable percentage that applies to all par-
ties, and make provision to avoid redundant obliga-
tions. In determining the applicable percentages, the
Administrator shall make adjustments to account for
the use of renewable fuels by exempt small refineries
during the previous year.
‘‘(4) CELLULOSIC BIOMASS ETHANOL.—For the
purpose of paragraph (2), 1 gallon of cellulosic bio-
mass ethanol shall be considered to be the equivalent
of 1.5 gallon of renewable fuel.
‘‘(5) CREDIT PROGRAM.—
‘‘(A) IN GENERAL.—The regulations pro-
mulgated to carry out this subsection shall pro-
vide for the generation of an appropriate
291
amount of credits by any person that refines,
blends, or imports gasoline that contains a
quantity of renewable fuel that is greater than
the quantity required under paragraph (2).
Such regulations shall provide for the genera-
tion of an appropriate amount of credits for
biodiesel fuel. If a small refinery notifies the
Administrator that it waives the exemption pro-
vided by this Act, the regulations shall provide
for the generation of credits by the small refin-
ery beginning in the year following such notifi-
cation.
‘‘(B) USE
OF
CREDITS.—A person that
generates credits under subparagraph (A) may
use the credits, or transfer all or a portion of
the credits to another person, for the purpose
of complying with paragraph (2).
‘‘(C) LIFE
OF
CREDITS.—A credit gen-
erated under this paragraph shall be valid to
show compliance:
‘‘(i) in the calendar year in which the
credit was generated or the next calendar
year, or
‘‘(ii) in the calendar year in which the
credit was generated or next two consecu-
292
tive calendar years if the Administrator
promulgates regulations under paragraph
(6).
‘‘(D) INABILITY TO PURCHASE SUFFICIENT
CREDITS.—The regulations promulgated to
carry out this subsection shall include provi-
sions allowing any person that is unable to gen-
erate or purchase sufficient credits to meet the
requirements under paragraph (2) to carry for-
ward a renewables deficit provided that, in the
calendar year following the year in which the
renewables deficit is created, such person shall
achieve compliance with the renewables require-
ment under paragraph (2), and shall generate
or purchase additional renewables credits to off-
set the renewables deficit of the previous year.
‘‘(6) SEASONAL
VARIATIONS
IN
RENEWABLE
FUEL USE.—
‘‘(A) STUDY.—For each of calendar years
2005 through 2015, the Administrator of the
Energy Information Administration, shall con-
duct a study of renewable fuels blending to de-
termine whether there are excessive seasonal
variations in the use of renewable fuels.
293
‘‘(B) REGULATION
OF
EXCESSIVE
SEA-
SONAL VARIATIONS.—If, for any calendar year,
the Administrator of the Energy Information
Administration, based on the study under sub-
paragraph (A), makes the determinations speci-
fied in subparagraph (C), the Administrator
shall promulgate regulations to ensure that 35
percent or more of the quantity of renewable
fuels necessary to meet the requirement of
paragraph (2) is used during each of the peri-
ods specified in subparagraph (D) of each sub-
sequent calendar year.
‘‘(C) DETERMINATIONS.—The determina-
tions referred to in subparagraph (B) are
that—
‘‘(i) less than 35 percent of the quan-
tity of renewable fuels necessary to meet
the requirement of paragraph (2) has been
used during one of the periods specified in
subparagraph (D) of the calendar year;
‘‘(ii) a pattern of excessive seasonal
variation described in clause (i) will con-
tinue in subsequent calendar years; and
‘‘(iii) promulgating regulations or
other requirements to impose a 35% or
294
more seasonal use of renewable fuels will
not prevent or interfere with the attain-
ment of national ambient air quality stand-
ards or significantly increase the price of
motor fuels to the consumer.
‘‘(D) PERIODS.—The two periods referred
to in this paragraph are—
‘‘(i) April through September; and
‘‘(ii) January through March and Oc-
tober through December.
‘‘(E) 
EXCLUSIONS.—Renewable 
fuels
blended or consumed in 2005 in a State which
has received a waiver under section 209(b) shall
not be included in the study in subparagraph
(A).
‘‘(7) WAIVERS.—
‘‘(A) IN GENERAL.—The Administrator, in
consultation with the Secretary of Agriculture
and the Secretary of Energy, may waive the re-
quirement of paragraph (2) in whole or in part
on petition by one or more States by reducing
the national quantity of renewable fuel required
under this subsection—
‘‘(i) based on a determination by the
Administrator, after public notice and op-
295
portunity for comment, that implementa-
tion of the requirement would have a sig-
nificant and meaningful adverse impact on
the economy or environment of a State, a
region, or the United States, or will pre-
vent or interfere with the attainment of a
national ambient air quality standard in
any area of a State; or
‘‘(ii) based on a determination by the
Administrator, after public notice and op-
portunity for comment, that there is an in-
adequate domestic supply or distribution
capacity to meet the requirement.
‘‘(B) PETITIONS FOR WAIVERS.—The Ad-
ministrator, in consultation with the Secretary
of Agriculture and the Secretary of Energy,
shall approve or disapprove a State petition for
a waiver of the requirement of paragraph (2)
within 90 days after the date on which the peti-
tion is received by the Administrator. If the Ad-
ministrator does not act to approve or dis-
approve a State petition for a waiver within 90
days, the Administrator shall publish a notice
setting forth the reasons for not acting within
the required 90-day period.
296
‘‘(C) TERMINATION OF WAIVERS.—A waiv-
er granted under subparagraph (A) shall termi-
nate after 1 year, but may be renewed by the
Administrator after consultation with the Sec-
retary of Agriculture and the Secretary of En-
ergy.
‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF
PROGRAM.—Not later than 180 days from enact-
ment, the Secretary of Energy shall complete for the
Administrator a study assessing whether the renew-
able fuels requirement under paragraph (2) will like-
ly result in significant adverse consumer impacts in
2005, on a national, regional or State basis. Such
study shall evaluate renewable fuel supplies and
prices, blendstock supplies, and supply and distribu-
tion system capabilities. Based on such study, the
Secretary shall make specific recommendations to
the Administrator regarding waiver of the require-
ments of paragraph (2), in whole or in part, to avoid
any such adverse impacts. Within 270 days from en-
actment, the Administrator shall, consistent with the
recommendations of the Secretary waive, in whole or
in part, the renewable fuels requirement under para-
graph (2) by reducing the national quantity of re-
newable fuel required under this subsection in 2005.
297
This provision shall not be interpreted as limiting
the Administrator’s authority to waive the require-
ments of paragraph (2) in whole, or in part, under
paragraph (7) or paragraph (9), pertaining to waiv-
ers.
‘‘(9) ASSESSMENT
AND
WAIVER.—The Sec-
retary of Energy, in consultation with the Adminis-
trator of the Environmental Protection Agency and
the Secretary of Agriculture on his own motion, or
upon petition of any State shall evaluate the require-
ment of paragraph (2) and determine, prior to Janu-
ary 1, 2007, or prior to January 1 of any subse-
quent year in which the applicable volume of renew-
able fuel is increased under paragraph (2)(B),
whether the requirement of paragraph (2), including
the applicable volume of renewable fuel contained in
paragraph (2)(B) should remain in effect, in whole
or in part, during 2007 or any year or years subse-
quent to 2007. In evaluating the requirement of
paragraph (2) and in making any determination
under this section, the Secretary shall consider the
best available information and data collected by ac-
cepted methods or best available means regarding—
‘‘(A) the capacity of renewable fuel pro-
ducers to supply an adequate amount of renew-
302
(ii) reformulated gasoline containing
ethanol;
(iii) conventional gasoline containing
renewable fuel; and
(iv) reformulated gasoline containing
renewable fuel; and
(B) submit to Congress, and make publicly
available, a report on the results of the survey
under subparagraph (A).
(2) RECORDKEEPING
AND
REPORTING
RE-
QUIREMENTS.—The Administrator may require any
refiner, blender, or importer to keep such records
and make such reports as are necessary to ensure
that the survey conducted under paragraph (1) is
accurate. The Administrator shall rely, to the extent
practicable, on existing reporting and recordkeeping
requirements to avoid duplicative requirements.
(3) APPLICABLE
LAW.—Activities carried out
under this subsection shall be conducted in a man-
ner designed to protect confidentiality of individual
responses.
(4) CALCULATION OF MARKET SHARES.—Mar-
ket shares for conventional gasoline and reformu-
lated gasoline use areas will be calculated on a state-
wide basis using information collected under para-
303
graph (2) and other information available to the Ad-
ministrator. Market share information may be based
upon gasoline distribution patterns that include
multistate use areas.
SEC. 17102. FUELS SAFE HARBOR.
(a) IN GENERAL.—Notwithstanding any other provi-
sion of Federal or State law, no renewable fuel, as defined
by section 211(o)(1) of the Clean Air Act, or fuel con-
taining MTBE, used or intended to be used as a motor
vehicle fuel, nor any motor vehicle fuel containing such
renewable fuel or MTBE, shall be deemed defective in de-
sign or manufacture by virtue of the fact that it is, or
contains, such a renewable fuel or MTBE, if it does not
violate a control or prohibition imposed by the Adminis-
trator under section 211 of such Act, and the manufac-
turer is in compliance with all requests for information
under subsection (b) of such section 211(b) of the Clean
Air Act. If the safe harbor provided by this section does
not apply, the existence of a design defect or manufac-
turing defect shall be determined under otherwise applica-
ble law. Nothing in this paragraph shall be construed to
affect the liability of any person for environmental remedi-
ation costs, drinking water contamination, negligence,
public nuisance or any other liability other than liability
304
for a defect in design or manufacture of a motor vehicle
fuel.
(b) EFFECTIVE DATE.—This section shall be effec-
tive as of the date of enactment and shall apply with re-
spect to all claims filed on or after that date.
SEC. 17103. FINDINGS AND MTBE TRANSITION ASSISTANCE.
(a) FINDINGS.—Congress finds that—
(1) since 1979, methyl tertiary butyl ether (re-
ferred to in this section as ‘‘MTBE’’) has been used
nationwide at low levels in gasoline to replace lead
as an octane booster or anti-knocking agent;
(2) Public Law 101–549 (commonly known as
the ‘‘Clean Air Act Amendments of 1990’’) (42
U.S.C. 7401 et seq.) established a fuel oxygenate
standard under which reformulated gasoline must
contain at least 2 percent oxygen by weight;
(3) at the time of the adoption of the fuel oxy-
gen standard, Congress was aware that significant
use of MTBE would result from the adoption of that
standard, and that the use of MTBE would likely be
important to the cost-effective implementation of
that program;
(4) Congress was aware that gasoline and its
component additives can and do leak from storage
tanks;
305
(5) the fuel industry responded to the fuel oxy-
genate standard established by Public Law 101–549
by making substantial investments in—
(A) MTBE production capacity; and
(B) systems to deliver MTBE-containing
gasoline to the marketplace;
(6) Congress has—
(A) reconsidered the relative value of the
oxygenate requirement for reformulated gaso-
line; and
(B) decided to provide for the elimination
of the oxygenate requirement for reformulated
gasoline and to provide for a renewable content
requirement for motor fuel; and
(7) it is appropriate for Congress to provide
some limited transition assistance—
(A) to merchant producers of MTBE who
produced MTBE in response to a market cre-
ated by the oxygenate requirement contained in
the Clean Air Act; and
(B) for the purpose of mitigating any fuel
supply problems that may result from the elimi-
nation of the oxygenate requirement for refor-
mulated gasoline.
306
(b) PURPOSES.—The purpose of this section is to
provide assistance to merchant producers of MTBE in
making the transition from producing MTBE to producing
other fuel additives.
(c) MTBE MERCHANT PRODUCER CONVERSION AS-
SISTANCE.—Section 211(c) of the Clean Air Act (42
U.S.C. 7545(c)) is amended by adding at the end the fol-
lowing:
‘‘(5) MTBE MERCHANT
PRODUCER
CONVER-
SION ASSISTANCE.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The Secretary of En-
ergy, in consultation with the Adminis-
trator, may make grants to merchant pro-
ducers of methyl tertiary butyl ether in the
United States to assist the producers in
the conversion of eligible production facili-
ties described in subparagraph (C) to the
production of iso-octane and alkylates.
‘‘(ii) DETERMINATION.—The Admin-
istrator, in consultation with the Secretary
of Energy, may determine that transition
assistance for the production of iso-octane
and alkylates is inconsistent with the pro-
visions of subparagraph (B) and, on that
307
basis, may deny applications for grants au-
thorized by this provision.
‘‘(B) FURTHER
GRANTS.—The Secretary
of Energy, in consultation with the Adminis-
trator, may also further make grants to mer-
chant producers of MTBE in the United States
to assist the producers in the conversion of eli-
gible production facilities described in subpara-
graph (C) to the production of such other fuel
additives that, consistent with this subsection—
‘‘(i) unless the Administrator deter-
mines that such fuel additives may reason-
ably be anticipated to endanger public
health or the environment;
‘‘(ii) have been registered and have
been tested or are being tested in accord-
ance with the requirements of this section;
and
‘‘(iii) will contribute to replacing gaso-
line volumes lost as a result of paragraph
(5).
‘‘(C) 
ELIGIBLE
PRODUCTION
FACILI-
TIES.—A production facility shall be eligible to
receive a grant under this paragraph if the pro-
duction facility—
308
‘‘(i) is located in the United States;
and
‘‘(ii) produced methyl tertiary butyl
ether for consumption before April 1, 2003
and ceased production at any time after
the date of enactment.
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $250,000,000 for
each of fiscal years 2004 through 2006, to re-
main available until expended.’’.
(d) EFFECT
ON STATE LAW.—The amendments
made to the Clean Air Act by this title have no effect re-
garding any available authority of States to limit the use
of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 17104. ELIMINATION OF OXYGEN CONTENT REQUIRE-
MENT FOR REFORMULATED GASOLINE.
(a) ELIMINATION.—
(1) IN GENERAL.—Section 211(k) of the Clean
Air Act (42 U.S.C. 7545(k)) is amended—
(A) in paragraph (2)—
(i) in the second sentence of subpara-
graph (A), by striking ‘‘(including the oxy-
gen content requirement contained in sub-
paragraph (B))’’;
309
(ii) by striking subparagraph (B); and
(iii) by redesignating subparagraphs
(C) and (D) as subparagraphs (B) and
(C), respectively;
(B) in paragraph (3)(A), by striking clause
(v);
(C) in paragraph (7)—
(i) in subparagraph (A)—
(I) by striking clause (i); and
(II) by redesignating clauses (ii)
and (iii) as clauses (i) and (ii), respec-
tively; and
(ii) in subparagraph (C)—
(I) by striking clause (ii); and
(II) by redesignating clause (iii)
as clause (ii); and
(2) EFFECTIVE DATE.—The amendments made
by paragraph (1) take effect 270 days after the date
of enactment of this Act, except that such amend-
ments shall take effect upon enactment in any State
that has received a waiver under section 209(b) of
the Clean Air Act.
(b) MAINTENANCE OF TOXIC AIR POLLUTANT EMIS-
SION REDUCTIONS.—Section 211(k)(1) of the Clean Air
Act (42 U.S.C. 7545(k)(1)) is amended—
310
(1) by striking ‘‘Within 1 year after the enact-
ment of the Clean Air Act Amendments of 1990,’’
and inserting the following:
‘‘(A) IN
GENERAL.—Not later than No-
vember 15, 1991,’’; and
(2) by adding at the end the following:
‘‘(B) MAINTENANCE OF TOXIC AIR POL-
LUTANT EMISSIONS REDUCTIONS FROM REFOR-
MULATED GASOLINE.—
‘‘(i) DEFINITIONS.—In this subpara-
graph the term ‘PADD’ means a Petro-
leum Administration for Defense District.
‘‘(ii) REGULATIONS REGARDING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not
later than 270 days after the date of en-
actment of this subparagraph the Adminis-
trator shall establish, for each refinery or
importer, standards for toxic air pollutants
from use of the reformulated gasoline pro-
duced or distributed by the refinery or im-
porter that maintain the reduction of the
average annual aggregate emissions of
toxic air pollutants for reformulated gaso-
line produced or distributed by the refinery
or importer during calendar years 1999
311
and 2000, determined on the basis of data
collected by the Administrator with respect
to the refinery or importer.
‘‘(iii) STANDARDS
APPLICABLE
TO
SPECIFIC REFINERIES OR IMPORTERS.—
‘‘(I) APPLICABILITY
OF
STAND-
ARDS.—For any calendar year, the
standards applicable to a refinery or
importer under clause (ii) shall apply
to the quantity of gasoline produced
or distributed by the refinery or im-
porter in the calendar year only to the
extent that the quantity is less than
or equal to the average annual quan-
tity of reformulated gasoline produced
or distributed by the refinery or im-
porter during calendar years 1999
and 2000.
‘‘(II) APPLICABILITY OF OTHER
STANDARDS.—For any calendar year,
the quantity of gasoline produced or
distributed by a refinery or importer
that is in excess of the quantity sub-
ject to subclause (I) shall be subject
to standards for toxic air pollutants
312
promulgated under subparagraph (A)
and paragraph (3)(B).
‘‘(iv) CREDIT PROGRAM.—The Admin-
istrator shall provide for the granting and
use of credits for emissions of toxic air pol-
lutants in the same manner as provided in
paragraph (7).
‘‘(v) 
REGIONAL
PROTECTION
OF
TOXICS REDUCTION BASELINES.—
‘‘(I) IN
GENERAL.—Not later
than 60 days after the date of enact-
ment of this subparagraph, and not
later than April 1 of each calendar
year that begins after that date of en-
actment, the Administrator shall pub-
lish in the Federal Register a report
that specifies, with respect to the pre-
vious calendar year—
‘‘(aa) the quantity of refor-
mulated gasoline produced that is
in excess of the average annual
quantity of reformulated gasoline
produced in 1999 and 2000; and
‘‘(bb) the reduction of the
average annual aggregate emis-
313
sions of toxic air pollutants in
each PADD, based on retail sur-
vey data or data from other ap-
propriate sources.
‘‘(II) EFFECT
OF
FAILURE
TO
MAINTAIN
AGGREGATE
TOXICS
RE-
DUCTIONS.—If, in any calendar year,
the reduction of the average annual
aggregate emissions of toxic air pol-
lutants in a PADD fails to meet or
exceed the reduction of the average
annual aggregate emissions of toxic
air pollutants in the PADD in cal-
endar years 1999 and 2000, the Ad-
ministrator, not later than 90 days
after the date of publication of the re-
port for the calendar year under sub-
clause (I), shall—
‘‘(aa) identify, to the max-
imum extent practicable, the rea-
sons for the failure, including the
sources, volumes, and character-
istics of reformulated gasoline
that contributed to the failure;
and
314
‘‘(bb) promulgate revisions
to the regulations promulgated
under clause (ii), to take effect
not earlier than 180 days but not
later than 270 days after the
date of promulgation, to provide
that, 
notwithstanding 
clause
(iii)(II), all reformulated gasoline
produced or distributed at each
refinery or importer shall meet
the standards applicable under
clause (ii) not later than April 1
of the year following the report
in subclause (II) and for subse-
quent years.
‘‘(vi) 
REGULATIONS
TO
CONTROL
HAZARDOUS
AIR
POLLUTANTS
FROM
MOTOR
VEHICLES
AND
MOTOR
VEHICLE
FUELS.—Not later than July 1, 2004, the
Administrator shall promulgate final regu-
lations to control hazardous air pollutants
from motor vehicles and motor vehicle
fuels, as provided for in section 80.1045 of
title 40, Code of Federal Regulations (as
315
in effect on the date of enactment of this
subparagraph).’’.
(c) CONSOLIDATION IN REFORMULATED GASOLINE
REGULATIONS.—Not later than 180 days after the date
of enactment of this Act, the Administrator shall revise
the reformulated gasoline regulations under subpart D of
part 80 of title 40, Code of Federal Regulations, to con-
solidate the regulations applicable to VOC-Control Re-
gions 1 and 2 under section 80.41 of that title by elimi-
nating the less stringent requirements applicable to gaso-
line designated for VOC-Control Region 2 and instead ap-
plying the more stringent requirements applicable to gaso-
line designated for VOC-Control Region 1.
(d) SAVINGS CLAUSE.—Nothing in this section is in-
tended to affect or prejudice either any legal claims or ac-
tions with respect to regulations promulgated by the Ad-
ministrator prior to enactment of this Act regarding emis-
sions of toxic air pollutants from motor vehicles or the
adjustment of standards applicable to a specific refinery
or importer made under such prior regulations and the
Administrator may apply such adjustments to the stand-
ards applicable to such refinery or importer under clause
(iii)(I) of section 211(k)(1)(B) of the Clean Air Act, ex-
cept that—
316
(1) the Administrator shall revise such adjust-
ments to be based only on calendar years 1999–
2000, and
(2) for adjustments based on toxic air pollutant
emissions from reformulated gasoline significantly
below the national annual average emissions of toxic
air pollutants from all reformulated gasoline, the
Administrator may revise such adjustments to take
account of the scope of any lawful and enforceable
Federal or State prohibition on methyl tertiary butyl
ether imposed after the effective date of the enact-
ment of this paragraph, except that any such adjust-
ment shall require such refiner or importer, to the
greatest extent practicable, to maintain the reduc-
tion achieved during calendar year 1999–2000 in the
average annual aggregate emissions of toxic air pol-
lutants from reformulated gasoline produced or dis-
tributed by the refinery or importer. Any such ad-
justment shall not be made at a level below the aver-
age percentage of reductions of emissions of toxic air
pollutants for reformulated gasoline supplied to
PADD I during calendar years 1999–2000.
SEC. 17105. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545)
is amended by inserting after subsection (o) the following:
317
‘‘(p) ANALYSES OF MOTOR VEHICLE FUEL CHANGES
AND EMISSIONS MODEL.—
‘‘(1) ANTI-BACKSLIDING ANALYSIS.—
‘‘(A) DRAFT ANALYSIS.—Not later than 4
years after the date of enactment of this para-
graph, the Administrator shall publish for pub-
lic comment a draft analysis of the changes in
emissions of air pollutants and air quality due
to the use of motor vehicle fuel and fuel addi-
tives resulting from implementation of the
amendments made by title VII of the Energy
Policy Act of 2003.
‘‘(B) FINAL ANALYSIS.—After providing a
reasonable opportunity for comment but not
later than 5 years after the date of enactment
of this paragraph, the Administrator shall pub-
lish the analysis in final form.
‘‘(2) EMISSIONS MODEL.—For the purposes of
this subsection, as soon as the necessary data are
available, the Administrator shall develop and final-
ize an emissions model that reasonably reflects the
effects of gasoline characteristics or components on
emissions from vehicles in the motor vehicle fleet
during calendar year 2005.’’.
318
SEC. 17106. DATA COLLECTION.
Section 205 of the Department of Energy Organiza-
tion Act (42 U.S.C. 7135) is amended by adding at the
end the following:
‘‘(m) RENEWABLE FUELS SURVEY.—(1) In order to
improve the ability to evaluate the effectiveness of the Na-
tion’s renewable fuels mandate, the Administrator shall
conduct and publish the results of a survey of renewable
fuels demand in the motor vehicle fuels market in the
United States monthly, and in a manner designed to pro-
tect the confidentiality of individual responses. In con-
ducting the survey, the Administrator shall collect infor-
mation both on a national and regional basis, including—
‘‘(A) the quantity of renewable fuels produced;
‘‘(B) the quantity of renewable fuels blended;
‘‘(C) the quantity of renewable fuels imported;
‘‘(D) the quantity of renewable fuels demanded;
‘‘(E) market price data; and
‘‘(F) such other analyses or evaluations as the
Administrator finds is necessary to achieve the pur-
poses of this section.
‘‘(2) The Administrator shall also collect or estimate
information both on a national and regional basis, pursu-
ant to subparagraphs (A) through (F) of paragraph (1),
for the five years prior to implementation of this sub-
section.
319
‘‘(3) This subsection does not affect the authority of
the Administrator to collect data under section 52 of the
Federal Energy Administration Act of 1974 (15 U.S.C.
790a).’’.
SEC. 17107. FUEL SYSTEM REQUIREMENTS HARMONI-
ZATION STUDY.
(a) STUDY.—
(1) IN
GENERAL.—The Administrator of the
Environmental Protection Agency and the Secretary
of Energy shall jointly conduct a study of Federal,
State, and local requirements concerning motor vehi-
cle fuels, including—
(A) requirements relating to reformulated
gasoline, volatility (measured in Reid vapor
pressure), oxygenated fuel, and diesel fuel; and
(B) other requirements that vary from
State to State, region to region, or locality to
locality.
(2) REQUIRED
ELEMENTS.—The study shall
assess—
(A) the effect of the variety of require-
ments described in paragraph (1) on the supply,
quality, and price of motor vehicle fuels avail-
able to consumers in various States and local-
ities;
320
(B) the effect of the requirements de-
scribed in paragraph (1) on achievement of—
(i) national, regional, and local air
quality standards and goals; and
(ii) related environmental and public
health protection standards and goals;
(C) the effect of Federal, State, and local
motor vehicle fuel regulations, including mul-
tiple motor vehicle fuel requirements, on—
(i) domestic refineries;
(ii) the fuel distribution system; and
(iii) industry investment in new capac-
ity;
(D) the effect of the requirements de-
scribed in paragraph (1) on emissions from ve-
hicles, refineries, and fuel handling facilities;
(E) the feasibility of developing national or
regional motor vehicle fuel slates for the 48
contiguous States that, while improving air
quality at the national, regional and local levels
consistent with the attainment of national am-
bient air quality standards, could—
(i) enhance flexibility in the fuel dis-
tribution infrastructure and improve fuel
fungibility;
321
(ii) reduce price volatility and costs to
consumers and producers;
(iii) provide increased liquidity to the
gasoline market; and
(iv) enhance fuel quality, consistency,
and supply;
(F) the feasibility of providing incentives,
to promote cleaner burning motor vehicle fuel;
and
(G) the extent to which improvements in
air quality and any increases or decreases in
the price of motor fuel can be projected to re-
sult from the Environmental Protection Agen-
cy’s Tier II requirements for conventional gaso-
line and vehicle emission systems, the reformu-
lated gasoline program, the renewable content
requirements established by this subtitle, State
programs regarding gasoline volatility, and any
other requirements imposed by States or local-
ities affecting the composition of motor fuel.
(b) REPORT.—
(1) IN GENERAL.—Not later than December 31,
2006, the Administrator of the Environmental Pro-
tection Agency and the Secretary of Energy shall
322
submit to Congress a report on the results of the
study conducted under subsection (a).
(2) RECOMMENDATIONS.—
(A) IN GENERAL.—The report shall con-
tain recommendations for legislative and admin-
istrative actions that may be taken—
(i) to improve air quality;
(ii) to reduce costs to consumers and
producers; and
(iii) to increase supply liquidity.
(B) 
REQUIRED
CONSIDERATIONS.—The
recommendations under subparagraph (A) shall
take into account the need to provide advance
notice of required modifications to refinery and
fuel distribution systems in order to ensure an
adequate supply of motor vehicle fuel in all
States.
(3) CONSULTATION.—In developing the report,
the Administrator of the Environmental Protection
Agency and the Secretary of Energy shall consult
with—
(A) the Governors of the States;
(B) automobile manufacturers;
(C) motor vehicle fuel producers and dis-
tributors; and
323
(D) the public.
SEC. 17107A. REDUCING THE PROLIFERATION BOUTIQUE
FUELS.
(a) EPA APPROVAL OF STATE PLANS WITH BOU-
TIQUE FUELS.—Section 211(c)(4) of the Clean Air Act
(42 U.S.C. 7545(c)(4)) is amended by adding the fol-
lowing at the end thereof:
‘‘(D) In the case of gasoline, after the enactment of
this subparagraph, the Administrator shall give a pref-
erence to the approval of implementation plan provisions
described in subparagraph (C) if the control or prohibition
in such provisions requires the use of either of the fol-
lowing:
‘‘(i) Federal clean burning fuel meeting the re-
quirements of subsection (p)(1).
‘‘(ii) Low RVP gasoline meeting the require-
ments of subsection (p)(2).’’.
(b) PREFERRED GASOLINE OPTIONS.—Section 211
of the Clean Air Act (42 U.S.C. 7545) is amended by add-
ing the following new subsection at the end thereof:
‘‘(r) PREFERRED GASOLINE OPTIONS.—
‘‘(1) FEDERAL CLEAN BURNING GASOLINE.—
For purposes of this section, the term ‘Federal clean
burning gasoline’ means reformulated gasoline as de-
fined in subsection (k), the Reid Vapor Pressure of
324
which is equal to 6.8 pounds per square inch (psi)
for the high ozone season (as determined by the Ad-
ministrator).
‘‘(2) LOW RVP GASOLINE.—The Administrator
shall promulgate regulations providing for a gasoline
blend for the high ozone season (as determined by
the Administrator) having a Reid Vapor Pressure of
7.8 pounds per square inch (psi).’’.
SEC. 17108. COMMERCIAL BYPRODUCTS FROM MUNICIPAL
SOLID WASTE LOAN GUARANTEE PROGRAM.
(a) DEFINITION OF MUNICIPAL SOLID WASTE.—In
this section, the term ‘‘municipal solid waste’’ has the
meaning given the term ‘‘solid waste’’ in section 1004 of
the Solid Waste Disposal Act (42 U.S.C. 6903).
(b) ESTABLISHMENT OF PROGRAM.—The Secretary
of Energy shall establish a program to provide guarantees
of loans by private institutions for the construction of fa-
cilities for the processing and conversion of municipal solid
waste into fuel ethanol and other commercial byproducts.
(c) REQUIREMENTS.—The Secretary may provide a
loan guarantee under subsection (b) to an applicant if—
(1) without a loan guarantee, credit is not
available to the applicant under reasonable terms or
conditions sufficient to finance the construction of a
facility described in subsection (b);
325
(2) the prospective earning power of the appli-
cant and the character and value of the security
pledged provide a reasonable assurance of repayment
of the loan to be guaranteed in accordance with the
terms of the loan; and
(3) the loan bears interest at a rate determined
by the Secretary to be reasonable, taking into ac-
count the current average yield on outstanding obli-
gations of the United States with remaining periods
of maturity comparable to the maturity of the loan.
(d) CRITERIA.—In selecting recipients of loan guar-
antees from among applicants, the Secretary shall give
preference to proposals that—
(1) meet all applicable Federal and State per-
mitting requirements;
(2) are most likely to be successful; and
(3) are located in local markets that have the
greatest need for the facility because of—
(A) the limited availability of land for
waste disposal; or
(B) a high level of demand for fuel ethanol
or other commercial byproducts of the facility.
(e) MATURITY.—A loan guaranteed under subsection
(b) shall have a maturity of not more than 20 years.
326
(f) TERMS AND CONDITIONS.—The loan agreement
for a loan guaranteed under subsection (b) shall provide
that no provision of the loan agreement may be amended
or waived without the consent of the Secretary.
(g) ASSURANCE
OF REPAYMENT.—The Secretary
shall require that an applicant for a loan guarantee under
subsection (b) provide an assurance of repayment in the
form of a performance bond, insurance, collateral, or other
means acceptable to the Secretary in an amount equal to
not less than 20 percent of the amount of the loan.
(h) GUARANTEE FEE.—The recipient of a loan guar-
antee under subsection (b) shall pay the Secretary an
amount determined by the Secretary to be sufficient to
cover the administrative costs of the Secretary relating to
the loan guarantee.
(i) FULL FAITH AND CREDIT.—The full faith and
credit of the United States is pledged to the payment of
all guarantees made under this section. Any such guar-
antee made by the Secretary shall be conclusive evidence
of the eligibility of the loan for the guarantee with respect
to principal and interest. The validity of the guarantee
shall be incontestable in the hands of a holder of the guar-
anteed loan.
(j) REPORTS.—Until each guaranteed loan under this
section has been repaid in full, the Secretary shall annu-
327
ally submit to Congress a report on the activities of the
Secretary under this section.
(k) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as are nec-
essary to carry out this section.
(l) TERMINATION OF AUTHORITY.—The authority of
the Secretary to issue a loan guarantee under subsection
(b) terminates on the date that is 10 years after the date
of enactment of this Act.
Subtitle B—MTBE Cleanup
SEC. 17201. FUNDING FOR MTBE CONTAMINATION.
Notwithstanding any other provision of law, there is
authorized to be appropriated to the Administrator of the
United States Environmental Protection Agency from the
Leaking Underground Storage Tank Trust Fund not more
than $850,000,000 to be used for taking such action lim-
ited to site assessment (including exposure assessment),
corrective action, inspection of underground storage tank
systems, and groundwater monitoring as the Adminis-
trator deems necessary to protect human health, welfare,
and the environment from underground storage tank re-
leases of fuel containing fuel oxygenates.
328
TITLE VIII—AUTOMOBILE
EFFICIENCY
SEC. 18001. AUTHORIZATION OF APPROPRIATIONS FOR IM-
PLEMENTATION 
AND 
ENFORCEMENT 
OF
FUEL ECONOMY STANDARDS.
In addition to any other funds authorized by law,
there are authorized to be appropriated to the National
Highway Traffic Safety Administration to implement and
enforce average fuel economy standards $5,000,000 for
fiscal years 2004 through 2006.
SEC. 18002. STUDY OF FEASIBILITY AND EFFECTS OF RE-
DUCING USE OF FUEL FOR AUTOMOBILES.
(a) IN GENERAL.—Not later than 30 days after the
date of the enactment of this Act, the Administrator of
the National Highway Traffic Safety Administration shall
study the feasibility and effects of reducing by model year
2012, by a significant percentage, the use of fuel for auto-
mobiles.
(b) SUBJECTS OF STUDY.—The study under this sec-
tion shall include—
(1) examination of, and recommendation of al-
ternatives to, the policy under current Federal law
of establishing average fuel economy standards for
automobiles and requiring each automobile manufac-
329
turer to comply with average fuel economy standards
that apply to the automobiles it manufactures;
(2) examination of how automobile manufactur-
ers could contribute toward achieving the reduction
referred to in subsection (a);
(3) examination of the potential of fuel cell
technology in motor vehicles in order to determine
the extent to which such technology may contribute
to achieving the reduction referred to in subsection
(a); and
(4) examination of the effects of the reduction
referred to in subsection (a) on—
(A) gasoline supplies;
(B) the automobile industry, including
sales of automobiles manufactured in the
United States;
(C) motor vehicle safety; and
(D) air quality.
(c) REPORT.—The Administrator shall submit to the
Congress a report on the findings, conclusion, and rec-
ommendations of the study under this section by not later
than 1 year after the date of the enactment of this Act.
DIVISION B—SCIENCE
SEC. 20001. PURPOSES.
The purposes of this division are to—
330
(1) contribute to a national energy strategy
through an energy research and development pro-
gram that supports basic energy research and pro-
vides mechanisms to develop, demonstrate, and pro-
mote the commercial application of new energy tech-
nologies in partnership with industry;
(2) protect and strengthen the Nation’s econ-
omy, standard of living, and national security by re-
ducing dependence on imported energy;
(3) meet future needs for energy services at the
lowest total cost to the Nation, giving balanced and
comprehensive consideration to technologies that im-
prove the efficiency of energy end uses and that en-
hance energy supply;
(4) reduce the environmental impacts of energy
production, distribution, transportation, and use;
(5) help increase domestic production of energy,
increase the availability of hydrocarbon reserves, and
lower energy prices; and
(6) stimulate economic growth and enhance the
ability of United States companies to compete in fu-
ture markets for advanced energy technologies.
SEC. 20002. GOALS.
(a) IN GENERAL.—In order to achieve the purposes
of this division, the Secretary shall conduct a balanced set
331
of programs of energy research, development, demonstra-
tion, and commercial application, guided by the following
goals:
(1) ENERGY EFFICIENCY.—
(A) BUILDINGS.—Develop, in partnership
with industry, technologies, designs, and pro-
duction methods that will enable an average 25
percent increase by 2010 in the energy effi-
ciency of all new buildings, as compared to a
new building in 1996.
(B) INDUSTRY.—Develop, in partnership
with industry, technologies, designs, and pro-
duction methods that will enable the energy in-
tensity of the major energy-consuming indus-
tries to improve by at least 25 percent by 2010
as compared to 1991.
(C) VEHICLES.—Develop, in partnership
with industry, technologies that will enable—
(i) by 2010, mid-sized passenger auto-
mobiles with a fuel economy of 80 miles
per gallon;
(ii) by 2010, light trucks (classes 1
and 2a) with a fuel economy of 60 miles
per gallon;
332
(iii) by 2010, medium trucks and
buses (classes 2b through 6 and class 8
transit buses) with a fuel economy, in ton-
miles per gallon for trucks and passenger
miles per gallon for buses, that is 3 times
that of year 2000 equivalent vehicles;
(iv) by 2010, heavy trucks (classes 7
and 8) with a fuel economy, in ton-miles
per gallon, that is 2 times that of year
2000 equivalent vehicles; and
(v) by 2020, meeting the goal of the
President’s Hydrogen Initiative.
(2) DISTRIBUTED ENERGY AND ELECTRIC EN-
ERGY SYSTEMS.—
(A) DISTRIBUTED GENERATION.—Develop,
in partnership with industry, technologies based
on natural gas that achieve electricity gener-
ating efficiencies greater than 40 percent by
2015 for on-site, or distributed, generation
technologies.
(B) ELECTRIC
ENERGY
SYSTEMS
AND
STORAGE.—Develop, 
in 
partnership 
with
industry—
(i) technologies for generators and
transmission, distribution, and storage sys-
333
tems that combine high capacity with high
efficiency (particularly for electric trans-
mission facilities in rural and remote
areas);
(ii) new transmission and distribution
technologies, including flexible alternating
current transmission systems, composite
conductor materials, advanced protection
devices, and controllers;
(iii) technologies for interconnection
of distributed energy resources with elec-
tric power systems;
(iv) high-temperature superconducting
materials for power delivery equipment
such as transmission and distribution ca-
bles, transformers, and generators; and
(v) real-time transmission and dis-
tribution system control technologies that
provide for continual exchange of informa-
tion between generation, transmission, dis-
tribution, and end-user facilities.
(3) RENEWABLE ENERGY.—
(A) WIND POWER.—Develop, in partner-
ship with industry, technologies and designs
that will—
334
(i) reduce the cost of wind power by
40 percent by 2012 as compared to 2000;
and
(ii) expand utilization of class 3 and 4
winds.
(B) PHOTOVOLTAICS.—Develop, in part-
nership with industry, total photovoltaic sys-
tems with installed costs of $5,000 per peak kil-
owatt by 2005 and $2000 per peak kilowatt by
2015.
(C) SOLAR THERMAL SYSTEMS.—Develop,
in partnership with industry, solar power tech-
nologies (including baseload solar power) that
combine high-efficiency and high-temperature
receivers with advanced thermal storage and
power cycles to accommodate peak loads and
reduce lifecycle costs.
(D) GEOTHERMAL ENERGY.—Develop, in
partnership with industry, technologies and
processes based on advanced hydrothermal sys-
tems and advanced heat and power systems, in-
cluding geothermal or ground source heat pump
technology, with a specific focus on—
(i) improving exploration and charac-
terization technology to increase the prob-
335
ability of drilling successful wells from 20
percent to 40 percent by 2010;
(ii) reducing the cost of drilling by
2008 to an average cost of $225 per foot;
(iii) developing enhanced geothermal
systems technology with the potential to
double the usable geothermal resource
base, as compared to the date of enact-
ment of this Act; and
(iv) reducing the cost of installing the
ground loop of ground-source heat pumps
by 30 percent by 2007 compared to the
cost in 2000.
(E) BIOMASS-BASED
POWER
SYSTEMS.—
Develop, in partnership with industry, inte-
grated power generating systems, advanced con-
version, and feedstock technologies capable of
producing electric power that is cost-competitive
with fossil-fuel generated electricity by 2010,
through co-production of fuels, chemicals, and
other products under subparagraph (F).
(F) BIOFUELS.—Develop, in partnership
with industry, new and emerging technologies
and 
biotechnology 
processes 
capable 
of
making—
336
(i) gaseous and liquid biofuels that
are price-competitive, by 2010, with gaso-
line or diesel in either internal combustion
engines or fuel cells; and
(ii) biofuels, biobased polymers, and
chemicals, including those derived from
lignocellulosic feedstock, with particular
emphasis on developing biorefineries that
use enzyme-based processing systems.
(G) HYDROPOWER.—Develop, in partner-
ship with industry, a new generation of turbine
technologies that will increase generating capac-
ity and be less damaging to fish and aquatic
ecosystems.
(4) FOSSIL ENERGY.—
(A) POWER
GENERATION.—Develop, in
partnership with industry, technologies, includ-
ing precombustion technologies, by 2015 with
the capability of realizing—
(i) electricity generating efficiencies of
75 percent (lower heating value) for nat-
ural gas; and
(ii) widespread commercial application
of combined heat and power with thermal
337
efficiencies of more than 85 percent (high-
er heating value).
(B) 
OFFSHORE
OIL
AND
GAS
RE-
SOURCES.—Develop, in partnership with indus-
try, technologies to—
(i) extract methane hydrates in coast-
al waters of the United States; and
(ii) develop natural gas and oil re-
serves in the ultra-deepwater of the Cen-
tral and Western Gulf of Mexico, with a
focus on improving, while lowering costs
and reducing environmental impacts, the
safety and efficiency of—
(I) the recovery of ultra-deep-
water resources; and
(II) sub-sea production tech-
nology used for such recovery.
(C) ONSHORE OIL AND GAS RESOURCES.—
Advance the science and technology available to
domestic onshore petroleum producers, particu-
larly independent producers of oil or gas,
through—
(i) advances in technology for explo-
ration and production of domestic petro-
338
leum resources, particularly those not ac-
cessible with current technology;
(ii) improvement in the ability to ex-
tract hydrocarbons (including heavy oil)
from known reservoirs and classes of res-
ervoirs; and
(iii) development of technologies and
practices that reduce the impact on the en-
vironment from petroleum exploration and
production.
(D) TRANSPORTATION
FUELS.—Increase
the availability of transportation fuels by focus-
ing research on—
(i) reducing the cost of producing
transportation fuels from coal and natural
gas; and
(ii) indirect liquefaction of coal and
biomass.
(5) NUCLEAR ENERGY.—
(A) EXISTING
REACTORS.—Support re-
search to extend the lifetimes of existing United
States nuclear power reactors, and increase
their reliability while optimizing their current
operations for greater efficiencies.
339
(B) ADVANCED
REACTORS.—Develop, in
partnership with industry—
(i) advanced, efficient, lower cost, and
passively safe reactor designs;
(ii) proliferation-resistant and high-
burn-up nuclear fuels; and
(iii) technologies to minimize genera-
tion of radioactive materials and improve
the management of nuclear waste.
(C) NUCLEAR
SCIENTISTS
AND
ENGI-
NEERS.—Attract new students and faculty to
the nuclear sciences, nuclear engineering, and
related fields (including health physics, nuclear
medicine, 
nuclear 
chemistry, 
and
radiochemistry).
(6) HYDROGEN.—Carry out programs related
to hydrogen in the Fossil Fuel Program and the Nu-
clear Energy Program.
(b) REVIEW AND ASSESSMENT OF GOALS.—
(1) EVALUATION
AND
MODIFICATION.—Based
on amounts appropriated and developments in
science and technology, the Secretary shall evaluate
the goals set forth in subsection (a) at least once
every 5 years, and shall report to the Congress any
proposed modifications to the goals.
340
(2) CONSULTATION.—In evaluating and pro-
posing modifications to the goals as provided in
paragraph (1), the Secretary shall solicit public
input.
(3) PUBLIC COMMENT.—(A) After consultation
under paragraph (2), the Secretary shall publish in
the Federal Register a set of draft modifications to
the goals for public comment.
(B) Not later than 60 days after the date of
publication of draft modifications under subpara-
graph (A), and after consideration of any public
comments received, the Secretary shall publish the
final modifications, including a summary of the pub-
lic comments received, in the Federal Register.
(4) EFFECTIVE
DATE.—No modification to
goals under this section shall take effect before the
date which is 5 years after the date of enactment of
this Act.
(c) EFFECT OF GOALS.—(1) Nothing in paragraphs
(1) through (6) of subsection (a), or any subsequent modi-
fication to the goals therein pursuant to subsection (b),
shall—
(A) create any new—
(i) authority for any Federal agency; or
(ii) requirement for any other person;
341
(B) be used by a Federal agency to support the
establishment of regulatory standards or regulatory
requirements; or
(C) alter the authority of the Secretary to make
grants or other awards.
(2) Nothing in this subsection shall be construed to
limit the authority of the Secretary to impose conditions
on grants or other awards based on the goals in subsection
(a) or any subsequent modification thereto.
SEC. 20003. DEFINITIONS.
For purposes of this division:
(1) DEPARTMENT.—The term ‘‘Department’’
means the Department of Energy.
(2) DEPARTMENTAL MISSION.—The term ‘‘de-
partmental mission’’ means any of the functions
vested in the Secretary of Energy by the Depart-
ment of Energy Organization Act (42 U.S.C. 7101
et seq.) or other law.
(3) INDEPENDENT
PRODUCER
OF
OIL
OR
GAS.—
(A) IN GENERAL.—The term ‘‘independent
producer of oil or gas’’ means any person who
produces oil or gas other than a person to
whom subsection (c) of section 613A of the In-
ternal Revenue Code of 1986 does not apply by
342
reason of paragraph (2) (relating to certain re-
tailers) or paragraph (4) (relating to certain re-
finers) of section 613A(d) of such Code.
(B) RULES FOR APPLYING PARAGRAPHS (2)
AND (4) OF SECTION 613A(d).—For purposes of
subparagraph (A), paragraphs (2) and (4) of
section 613A(d) of the Internal Revenue Code
of 1986 shall be applied by substituting ‘‘cal-
endar year’’ for ‘‘taxable year’’ each place it ap-
pears in such paragraphs.
(4) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the
meaning given that term in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(5) JOINT
VENTURE.—The term ‘‘joint ven-
ture’’ has the meaning given that term under section
2 of the National Cooperative Research and Produc-
tion Act of 1993 (15 U.S.C. 4301).
(6) NATIONAL LABORATORY.—The term ‘‘Na-
tional Laboratory’’ means any of the following lab-
oratories owned by the Department:
(A) Ames National Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Laboratory.
343
(E) Idaho National Engineering and Envi-
ronmental Laboratory.
(F) Lawrence Berkeley National Labora-
tory.
(G) Lawrence Livermore National Labora-
tory.
(H) Los Alamos National Laboratory.
(I) National Energy Technology Labora-
tory.
(J) National Renewable Energy Labora-
tory.
(K) Oak Ridge National Laboratory.
(L) Pacific Northwest National Labora-
tory.
(M) Princeton Plasma Physics Laboratory.
(N) Sandia National Laboratories.
(O) Thomas Jefferson National Accel-
erator Facility.
(7) NONMILITARY ENERGY LABORATORY.—The
term ‘‘nonmilitary energy laboratory’’ means any of
the following laboratories of the Department:
(A) Ames National Laboratory.
(B) Argonne National Laboratory.
(C) Brookhaven National Laboratory.
(D) Fermi National Laboratory.
344
(E) Lawrence Berkeley National Labora-
tory.
(F) Oak Ridge National Laboratory.
(G) Pacific Northwest National Labora-
tory.
(H) Princeton Plasma Physics Laboratory.
(I) Stanford Linear Accelerator Center.
(J) Thomas Jefferson National Accelerator
Facility.
(8) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
(9) SINGLE-PURPOSE
RESEARCH
FACILITY.—
The term ‘‘single-purpose research facility’’ means
any of the following primarily single-purpose entities
owned by the Department:
(A) East Tennessee Technology Park.
(B) Fernald Environmental Management
Project.
(C) Kansas City Plant.
(D) Nevada Test Site.
(E) New Brunswick Laboratory.
(F) Pantex Weapons Facility.
(G) Savannah River Technology Center.
(H) Stanford Linear Accelerator Center.
345
(I) Y–12 facility at Oak Ridge National
Laboratory.
(J) Waste Isolation Pilot Plant.
(K) Any other similar organization of the
Department designated by the Secretary that
engages in technology transfer, partnering, or
licensing activities.
TITLE I—RESEARCH AND
DEVELOPMENT
Subtitle A—Energy Efficiency
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21101. ENERGY EFFICIENCY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for energy effi-
ciency and conservation research, development, dem-
onstration, and commercial application activities, includ-
ing activities authorized under this subtitle:
(1) For fiscal year 2004, $616,000,000.
(2) For fiscal year 2005, $695,000,000.
(3) For fiscal year 2006, $772,000,000.
(4) For fiscal year 2007, $865,000,000.
(b) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
346
(1) LIGHTING SYSTEMS.—For activities under
section 21111, $50,000,000 for each of fiscal years
2004 through 2007.
(2) 
ELECTRIC
MOTOR
CONTROL
TECH-
NOLOGY.—For 
activities 
under 
section 
21122,
$2,000,000 for each of fiscal years 2004 through
2007.
(3) SECONDARY ELECTRIC VEHICLE BATTERY
USE
PROGRAM.—For 
activities 
under 
section
21132—
(A) for fiscal year 2004, $4,000,000;
(B) for fiscal year 2005, $7,000,000;
(C) for fiscal year 2006, $7,000,000; and
(D) for fiscal year 2007, $7,000,000.
(4) ENERGY
EFFICIENCY
SCIENCE
INITIA-
TIVE.—For activities under section 21141—
(A) for fiscal year 2004, $20,000,000;
(B) for fiscal year 2005, $25,000,000;
(C) for fiscal year 2006, $30,000,000; and
(D) for fiscal year 2007, $35,000,000.
(c) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for activities
under section 21111, $50,000,000 for each of fiscal years
2008 through 2012.
347
(d) LIMITS ON USE OF FUNDS.—None of the funds
authorized to be appropriated under this section may be
used for—
(1) the promulgation and implementation of en-
ergy efficiency regulations;
(2) the Weatherization Assistance Program
under part A of title IV of the Energy Conservation
and Production Act;
(3) the State Energy Program under part D of
title III of the Energy Policy and Conservation Act;
or
(4) the Federal Energy Management Program
under part 3 of title V of the National Energy Con-
servation Policy Act.
PART 2—LIGHTING SYSTEMS
SEC. 21111. NEXT GENERATION LIGHTING INITIATIVE.
(a) IN GENERAL.—The Secretary shall carry out a
Next Generation Lighting Initiative in accordance with
this section to support research, development, demonstra-
tion, and commercial application activities related to ad-
vanced solid-state lighting technologies based on white
light emitting diodes.
(b) OBJECTIVES.—The objectives of the initiative
shall be—
348
(1) to develop, by 2012, advanced solid-state
lighting technologies based on white light emitting
diodes that, compared to incandescent and fluores-
cent lighting technologies, are—
(A) longer lasting;
(B) more energy-efficient; and
(C) cost-competitive;
(2) to develop an inorganic white light emitting
diode that has an efficiency of 160 lumens per watt
and a 10-year lifetime; and
(3) to develop an organic white light emitting
diode with an efficiency of 100 lumens per watt with
a 5-year lifetime that—
(A) illuminates over a full color spectrum;
(B) covers large areas over flexible sur-
faces; and
(C) does not contain harmful pollutants,
such as mercury, typical of fluorescent lamps.
(c) FUNDAMENTAL RESEARCH.—
(1) CONSORTIUM.—The Secretary shall carry
out the fundamental research activities of the Next
Generation Lighting Initiative through a private
consortium (which may include private firms, trade
associations and institutions of higher education),
which the Secretary shall select through a competi-
349
tive process. Each proposed consortium shall submit
to the Secretary such information as the Secretary
may require, including a program plan agreed to by
all participants of the consortium.
(2) JOINT VENTURE.—The consortium shall be
structured as a joint venture among the participants
of the consortium. The Secretary shall serve on the
governing council of the consortium.
(3) ELIGIBILITY.—To be eligible to be selected
as the consortium under paragraph (1), an applicant
must be broadly representative of United States
solid-state lighting research, development, and man-
ufacturing expertise as a whole.
(4) GRANTS.—(A) The Secretary shall award
grants for fundamental research to the consortium,
which the consortium may disburse to researchers,
including those who are not participants of the con-
sortium.
(B) To receive a grant, the consortium must
provide a description to the Secretary of the pro-
posed research and list the parties that will receive
funding.
(C) Grants shall be matched by the consortium
pursuant to section 21802.
350
(5) NATIONAL LABORATORIES.—National Lab-
oratories may participate in the research described
in this section, and may receive funds from the con-
sortium.
(6) INTELLECTUAL PROPERTY.—Participants in
the consortium and the Federal Government shall
have royalty-free nonexclusive rights to use intellec-
tual property derived from research funded pursuant
to this subsection.
(d) DEVELOPMENT, DEMONSTRATION, AND COM-
MERCIAL APPLICATION.—The Secretary shall carry out
the development, demonstration, and commercial applica-
tion activities of the Next Generation Lighting Initiative
through awards to private firms, trade associations, and
institutions of higher education. In selecting awardees, the
Secretary may give preference to members of the consor-
tium selected pursuant to subsection (c).
(e) PLANS AND ASSESSMENTS.—(1) The consortium
shall formulate an annual operating plan which shall in-
clude research priorities, technical milestones, and plans
for technology transfer, and which shall be subject to ap-
proval by the Secretary.
(2) The Secretary shall enter into an arrangement
with the National Academy of Sciences to conduct periodic
reviews of the Next Generation Lighting Initiative. The
351
Academy shall review the research priorities, technical
milestones, and plans for technology transfer established
under paragraph (1) and evaluate the progress toward
achieving them. The Secretary shall consider the results
of such reviews in evaluating the plans submitted under
paragraph (1).
(f) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to perform an audit of the
consortium to determine the extent to which the funds au-
thorized by this section have been expended in a manner
consistent with the purposes of this section. The auditor
shall transmit a report annually to the Secretary, who
shall transmit the report to the Congress, along with a
plan to remedy any deficiencies cited in the report.
(g) SUNSET.—The Next Generation Lighting Initia-
tive shall terminate no later than September 30, 2013.
(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) 
FUNDAMENTAL
RESEARCH.—The 
term
‘‘fundamental research’’ includes basic research on
352
both solid-state materials and manufacturing proc-
esses.
(3) 
INORGANIC
WHITE
LIGHT
EMITTING
DIODE.—The term ‘‘inorganic white light emitting
diode’’ means an inorganic semiconducting package
that produces white light using externally applied
voltage.
(4) ORGANIC WHITE LIGHT EMITTING DIODE.—
The term ‘‘organic white light emitting diode’’
means an organic semiconducting compound that
produces white light using externally applied voltage.
PART 3—BUILDINGS
SEC. 21121. NATIONAL BUILDING PERFORMANCE INITIA-
TIVE.
(a) INTERAGENCY GROUP.—Not later than 3 months
after the date of enactment of this Act, the Director of
the Office of Science and Technology Policy shall establish
an interagency group to develop, in coordination with the
advisory committee established under subsection (e), a
National Building Performance Initiative (in this section
referred to as the ‘‘Initiative’’). The interagency group
shall be cochaired by appropriate officials of the Depart-
ment and the Department of Commerce, who shall jointly
arrange for the provision of necessary administrative sup-
port to the group.
353
(b) INTEGRATION
OF
EFFORTS.—The Initiative,
working with the National Institute of Building Sciences,
shall integrate Federal, State, and voluntary private sector
efforts to reduce the costs of construction, operation,
maintenance, and renovation of commercial, industrial, in-
stitutional, and residential buildings.
(c) PLAN.—Not later than 1 year after the date of
enactment of this Act, the interagency group shall submit
to Congress a plan for carrying out the appropriate Fed-
eral role in the Initiative. The plan shall be based on whole
building principles and shall include—
(1) research, development, demonstration, and
commercial application of systems and materials for
new construction and retrofit relating to the building
envelope and building system components; and
(2) the collection, analysis, and dissemination of
research results and other pertinent information on
enhancing building performance to industry, govern-
ment entities, and the public.
(d) DEPARTMENT OF ENERGY ROLE.—Within the
Federal portion of the Initiative, the Department shall be
the lead agency for all aspects of building performance re-
lated to use and conservation of energy.
(e) ADVISORY COMMITTEE.—
354
(1) ESTABLISHMENT.—The Director of the Of-
fice of Science and Technology Policy shall establish
an advisory committee to—
(A) analyze and provide recommendations
on potential private sector roles and participa-
tion in the Initiative; and
(B) review and provide recommendations
on the plan described in subsection (c).
(2) MEMBERSHIP.—Membership of the advisory
committee shall include representatives with a broad
range of appropriate expertise, including expertise
in—
(A) building research and technology;
(B) architecture, engineering, and building
materials and systems; and
(C) the residential, commercial, and indus-
trial sectors of the construction industry.
(f) CONSTRUCTION.—Nothing in this section provides
any Federal agency with new authority to regulate build-
ing performance.
SEC. 21122. ELECTRIC MOTOR CONTROL TECHNOLOGY.
The Secretary shall conduct a research, development,
demonstration, and commercial application program on
advanced control devices to improve the energy efficiency
355
of electric motors used in heating, ventilation, air condi-
tioning, and comparable systems.
PART 4—VEHICLES
SEC. 21131. DEFINITIONS.
For purposes of this part, the term—
(1) ‘‘battery’’ means an energy storage device
that previously has been used to provide motive
power in a vehicle powered in whole or in part by
electricity; and
(2) ‘‘associated equipment’’ means equipment
located where the batteries will be used that is nec-
essary to enable the use of the energy stored in the
batteries.
SEC. 21132. ESTABLISHMENT OF SECONDARY ELECTRIC VE-
HICLE BATTERY USE PROGRAM.
(a) PROGRAM.—The Secretary shall establish and
conduct a research, development, demonstration, and com-
mercial application program for the secondary use of bat-
teries. Such program shall be—
(1) designed to demonstrate the use of batteries
in secondary application, including utility and com-
mercial power storage and power quality;
(2) structured to evaluate the performance, in-
cluding useful service life and costs, of such bat-
teries in field operations, and evaluate the necessary
356
supporting infrastructure, including reuse and dis-
posal of batteries; and
(3) coordinated with ongoing secondary battery
use programs at the National Laboratories and in
industry.
(b) SOLICITATION.—(1) Not later than 6 months
after the date of the enactment of this Act, the Secretary
shall solicit proposals to demonstrate the secondary use
of batteries and associated equipment and supporting in-
frastructure in geographic locations throughout the
United States. The Secretary may make additional solici-
tations for proposals if the Secretary determines that such
solicitations are necessary to carry out this section.
(2)(A) Proposals submitted in response to a solicita-
tion under this section shall include—
(i) a description of the project, including the
batteries to be used in the project, the proposed lo-
cations and applications for the batteries, the num-
ber of batteries to be demonstrated, and the type,
characteristics, and estimated life-cycle costs of the
batteries compared to other energy storage devices
currently used;
(ii) the contribution, if any, of State or local
governments and other persons to the demonstration
project;
357
(iii) the type of associated equipment and sup-
porting infrastructure to be demonstrated; and
(iv) any other information the Secretary con-
siders appropriate.
(B) If the proposal includes a lease arrangement, the
proposal shall indicate the terms of such lease arrange-
ment for the batteries and associated equipment.
(c) SELECTION OF PROPOSALS.—(1)(A) The Sec-
retary shall, not later than 3 months after the closing date
established by the Secretary for receipt of proposals under
subsection (b), select at least 5 proposals to receive finan-
cial assistance under this section.
(B) No one project selected under this section shall
receive more than 25 percent of the funds authorized
under this section. No more than 3 projects selected under
this section shall demonstrate the same battery type.
(2) In selecting a proposal under this section, the
Secretary shall consider—
(A) the ability of the proposer to acquire the
batteries and associated equipment and to success-
fully manage and conduct the demonstration project,
including satisfying the reporting requirements set
forth in paragraph (3)(B);
(B) the geographic and climatic diversity of the
projects selected;
358
(C) the long-term technical and competitive via-
bility of the batteries to be used in the project and
of the original manufacturer of such batteries;
(D) the suitability of the batteries for their in-
tended uses;
(E) the technical performance of the batteries,
including the expected additional useful life and the
batteries’ ability to retain energy;
(F) the environmental effects of the use of and
disposal of the batteries proposed to be used in the
project selected;
(G) the extent of involvement of State or local
government and other persons in the demonstration
project and whether such involvement will—
(i) permit a reduction of the Federal cost
share per project; or
(ii) otherwise be used to allow the Federal
contribution to be provided to demonstrate a
greater number of batteries; and
(H) such other criteria as the Secretary con-
siders appropriate.
(3) CONDITIONS.—The Secretary shall require that—
(A) as a part of a demonstration project, the
users of the batteries provide to the proposer infor-
mation regarding the operation, maintenance, per-
359
formance, and use of the batteries, and the proposer
provide such information to the battery manufac-
turer, for 3 years after the beginning of the dem-
onstration project;
(B) the proposer provide to the Secretary such
information regarding the operation, maintenance,
performance, and use of the batteries as the Sec-
retary may request;
(C) the proposer provide to the Secretary such
information regarding the disposal of the batteries
as the Secretary may require to ensure that the pro-
poser disposes of the batteries in accordance with
applicable law; and
(D) the proposer provide at least 50 percent of
the costs associated with the proposal.
PART 5—ENERGY EFFICIENCY SCIENCE
INITIATIVE
SEC. 21141. ENERGY EFFICIENCY SCIENCE INITIATIVE.
(a) ESTABLISHMENT.—The Secretary shall establish
an Energy Efficiency Science Initiative to be managed by
the Assistant Secretary in the Department with responsi-
bility for energy conservation under section 203(a)(9) of
the Department of Energy Organization Act (42 U.S.C.
7133(a)(9)), in consultation with the Director of the Of-
fice of Science, for grants to be competitively awarded and
360
subject to peer review for research relating to energy effi-
ciency.
(b) REPORT.—The Secretary shall submit to the Con-
gress, along with the President’s annual budget request
under section 1105(a) of title 31, United States Code, a
report on the activities of the Energy Efficiency Science
Initiative, including a description of the process used to
award the funds and an explanation of how the research
relates to energy efficiency.
PART 6—ADVANCED ENERGY TECHNOLOGY
TRANSFER CENTERS
SEC. 21151. ADVANCED ENERGY TECHNOLOGY TRANSFER
CENTERS.
(a) GRANTS.—Not later than 18 months after the
date of the enactment of this Act, the Secretary shall
make grants to nonprofit institutions, State and local gov-
ernments, or universities (or consortia thereof), to estab-
lish a geographically dispersed network of Advanced En-
ergy Technology Transfer Centers, to be located in areas
the Secretary determines have the greatest need of the
services of such Centers.
(b) ACTIVITIES.—(1) Each Center shall operate a
program to encourage demonstration and commercial ap-
plication of advanced energy methods and technologies
through education and outreach to building and industrial
361
professionals, and to other individuals and organizations
with an interest in efficient energy use.
(2) Each Center shall establish an advisory panel to
advise the Center on how best to accomplish the activities
under paragraph (1).
(c) APPLICATION.—A person seeking a grant under
this section shall submit to the Secretary an application
in such form and containing such information as the Sec-
retary may require. The Secretary may award a grant
under this section to an entity already in existence if the
entity is otherwise eligible under this section.
(d) SELECTION
CRITERIA.—The Secretary shall
award grants under this section on the basis of the fol-
lowing criteria, at a minimum:
(1) The ability of the applicant to carry out the
activities in subsection (b).
(2) The extent to which the applicant will co-
ordinate the activities of the Center with other enti-
ties, such as State and local governments, utilities,
and educational and research institutions.
(e) MATCHING FUNDS.—The Secretary shall require
a non-Federal matching requirement of at least 50 percent
of the costs of establishing and operating each Center.
(f) ADVISORY COMMITTEE.—The Secretary shall es-
tablish an advisory committee to advise the Secretary on
362
the establishment of Centers under this section. The advi-
sory committee shall be composed of individuals with ex-
pertise in the area of advanced energy methods and tech-
nologies, including at least 1 representative from—
(1) State or local energy offices;
(2) energy professionals;
(3) trade or professional associations;
(4) architects, engineers, or construction profes-
sionals;
(5) manufacturers;
(6) the research community; and
(7) nonprofit energy or environmental organiza-
tions.
(g) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘advanced energy methods and
technologies’’ means all methods and technologies
that promote energy efficiency and conservation, in-
cluding distributed generation technologies, and life-
cycle analysis of energy use;
(2) the term ‘‘Center’’ means an Advanced En-
ergy Technology Transfer Center established pursu-
ant to this section; and
(3) the term ‘‘distributed generation’’ means an
electric power generation facility that is designed to
363
serve retail electric consumers at or near the facility
site.
Subtitle B—Distributed Energy and
Electric Energy Systems
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21201. DISTRIBUTED ENERGY AND ELECTRIC ENERGY
SYSTEMS.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for distributed
energy and electric energy systems activities, including ac-
tivities authorized under this subtitle:
(1) For fiscal year 2004, $190,000,000.
(2) For fiscal year 2005, $200,000,000.
(3) For fiscal year 2006, $220,000,000.
(4) For fiscal year 2007, $240,000,000.
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—From amounts authorized under subsection
(a), the following sums shall be available for activities
under section 21213:
(1) For fiscal year 2004, $5,000,000.
(2) For fiscal year 2005, $5,500,000.
(3) For fiscal year 2006, $6,000,000.
(4) For fiscal year 2007, $6,500,000.
364
PART 2—DISTRIBUTED POWER
SEC. 21211. STRATEGY.
(a) REQUIREMENT.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall develop
and transmit to the Congress a strategy for a comprehen-
sive research, development, demonstration, and commer-
cial application program to develop hybrid distributed
power systems that combine—
(1) one or more renewable electric power gen-
eration technologies of 10 megawatts or less located
near the site of electric energy use; and
(2) nonintermittent electric power generation
technologies suitable for use in a distributed power
system.
(b) CONTENTS.—The strategy shall—
(1) identify the needs best met with such hybrid
distributed power systems and the technological bar-
riers to the use of such systems;
(2) provide for the development of methods to
design, test, integrate into systems, and operate
such hybrid distributed power systems;
(3) include, as appropriate, research, develop-
ment, demonstration, and commercial application on
related technologies needed for the adoption of such
hybrid distributed power systems, including energy
365
storage devices and environmental control tech-
nologies;
(4) include research, development, demonstra-
tion, and commercial application of interconnection
technologies for communications and controls of dis-
tributed generation architectures, particularly tech-
nologies promoting real-time response to power mar-
ket information and physical conditions on the elec-
trical grid; and
(5) describe how activities under the strategy
will be integrated with other research, development,
demonstration, and commercial application activities
supported by the Department of Energy related to
electric power technologies.
SEC. 21212. HIGH POWER DENSITY INDUSTRY PROGRAM.
The Secretary shall establish a comprehensive re-
search, development, demonstration, and commercial ap-
plication program to improve energy efficiency of high
power density facilities, including data centers, server
farms, and telecommunications facilities. Such program
shall consider technologies that provide significant im-
provement in thermal controls, metering, load manage-
ment, peak load reduction, or the efficient cooling of elec-
tronics.
366
SEC. 21213. MICRO-COGENERATION ENERGY TECHNOLOGY.
The Secretary shall make competitive, merit-based
grants to consortia for the development of micro-cogenera-
tion energy technology. The consortia shall explore the use
of small-scale combined heat and power in residential
heating appliances.
PART 3—TRANSMISSION SYSTEMS
SEC. 21221. TRANSMISSION INFRASTRUCTURE SYSTEMS RE-
SEARCH, DEVELOPMENT, DEMONSTRATION,
AND COMMERCIAL APPLICATION.
(a) PROGRAM AUTHORIZED.—The Secretary shall de-
velop and implement a comprehensive research, develop-
ment, demonstration, and commercial application program
to promote improved reliability and efficiency of electrical
transmission systems. Such program may include—
(1) advanced energy technologies, materials,
and systems;
(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;
367
(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) any other infrastructure technologies, as ap-
propriate; and
(9) technology transfer and education.
(b) PROGRAM PLAN.—Not later than 1 year after the
date of the enactment of this Act, the Secretary, in con-
sultation with other appropriate Federal agencies, shall
prepare and transmit to Congress a 5-year program plan
to guide activities under this section. In preparing the pro-
gram plan, the Secretary shall consult with utilities, en-
ergy services providers, manufacturers, institutions of
higher education, other appropriate State and local agen-
cies, environmental organizations, professional and tech-
nical societies, and any other persons the Secretary con-
siders appropriate.
368
(c) REPORT.—Not later than 2 years after the trans-
mittal of the plan under subsection (b), the Secretary shall
transmit a report to Congress describing the progress
made under this section and identifying any additional re-
sources needed to continue the development and commer-
cial application of transmission infrastructure tech-
nologies.
Subtitle C—Renewable Energy
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21301. RENEWABLE ENERGY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for renewable en-
ergy research, development, demonstration, and commer-
cial application activities, including activities authorized
under this subtitle:
(1) For fiscal year 2004, $380,000,000.
(2) For fiscal year 2005, $420,000,000.
(3) For fiscal year 2006, $460,000,000.
(4) For fiscal year 2007, $499,000,000.
(b) BIOENERGY.—From the amounts authorized
under subsection (a), the following sums are authorized
to be appropriated to carry out section 21311 and section
21706:
(1) For fiscal year 2004, $135,425,000.
(2) For fiscal year 2005, $155,600,000.
369
(3) For fiscal year 2006, $167,650,000.
(4) For fiscal year 2007, $180,000,000.
(c) PUBLIC BUILDINGS.—From the amounts author-
ized under subsection (a), $30,000,000 for each of the fis-
cal years 2004 through 2007 are authorized to be appro-
priated to carry out section 21322.
(d) LIMITS ON USE OF FUNDS.—
(1) EXCLUSION.—None of the funds authorized
to be appropriated under this section may be used
for Renewable Support and Implementation.
(2) BIOENERGY.—Of the funds authorized
under subsection (b), not less than $5,000,000 for
each fiscal year shall be made available for grants to
Historically Black Colleges and Universities, Tribal
Colleges, and Hispanic-Serving Institutions.
(3) RURAL AND REMOTE LOCATIONS.—In car-
rying out this section, the Secretary, in consultation
with the Secretary of Agriculture, shall demonstrate
the use of advanced wind power technology, biomass,
geothermal energy systems, and other renewable en-
ergy technologies to assist in delivering electricity to
rural and remote locations.
(4) REGIONAL
FIELD
VERIFICATION.—Of the
funds authorized under subsection (a), not less than
$4,000,000 for each fiscal year shall be made avail-
370
able for the Regional Field Verification Program of
the Department.
(5) 
HYDROPOWER
DEMONSTRATION
PROJECTS.—Of the funds authorized under sub-
section (a), such sums as may be necessary shall be
made available for demonstration projects of off-
stream pumped storage hydropower.
PART 2—BIOENERGY
SEC. 21311. BIOENERGY PROGRAMS.
The Secretary shall conduct a program of research,
development, demonstration, and commercial application
for bioenergy, including—
(1) biopower energy systems;
(2) biofuels;
(3) integrated applications of both biopower and
biofuels;
(4) cross-cutting research and development in
feedstocks; and
(5) economic analysis.
PART 3—MISCELLANEOUS PROJECTS
SEC. 21321. MISCELLANEOUS PROJECTS.
(a) PROGRAMS.—The Secretary shall conduct re-
search, development, demonstration, and commercial ap-
plication programs for—
(1) ocean energy, including wave energy;
371
(2) the combined use of renewable energy tech-
nologies with one another and with other energy
technologies, including the combined use of wind
power and coal gasification technologies; and
(3) hydrogen carrier fuels.
(b) STUDY.—(1) The Secretary shall enter into an
arrangement with the National Academy of Sciences to
conduct a study on—
(A) the feasibility of various methods of renew-
able generation of energy from the ocean, including
energy from waves, tides, currents, and thermal gra-
dients; and
(B) the research, development, demonstration,
and commercial application activities required to
make marine renewable energy generation competi-
tive with other forms of electricity generation.
(2) Not later than 1 year after the date of the enact-
ment of this Act, the Secretary shall transmit the study
to the Congress along with the Secretary’s recommenda-
tions for implementing the results of the study.
SEC. 21322. RENEWABLE ENERGY IN PUBLIC BUILDINGS.
(a) DEMONSTRATION AND TECHNOLOGY TRANSFER
PROGRAM.—The Secretary shall establish a program for
the demonstration of innovative technologies for solar and
other renewable energy sources in buildings owned or op-
372
erated by a State or local government, and for the dissemi-
nation of information resulting from such demonstration
to interested parties.
(b) LIMIT ON FEDERAL FUNDING.—The Secretary
shall provide under this section no more than 40 percent
of the incremental costs of the solar or other renewable
energy source project funded.
(c) REQUIREMENT.—As part of the application for
awards under this section, the Secretary shall require all
applicants—
(1) to demonstrate a continuing commitment to
the use of solar and other renewable energy sources
in buildings they own or operate; and
(2) to state how they expect any award to fur-
ther their transition to the significant use of renew-
able energy.
Subtitle D—Nuclear Energy
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21401. NUCLEAR ENERGY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for nuclear energy
research, development, demonstration, and commercial ap-
plication activities, including activities authorized under
this subtitle:
(1) For fiscal year 2004, $388,000,000.
373
(2) For fiscal year 2005, $416,000,000.
(3) For fiscal year 2006, $445,000,000.
(4) For fiscal year 2007, $474,000,000.
(b) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
(1) NUCLEAR
INFRASTRUCTURE
SUPPORT.—
For activities under section 21411(e)—
(A) for fiscal year 2004, $125,000,000;
(B) for fiscal year 2005, $130,000,000;
(C) for fiscal year 2006, $135,000,000;
and
(D) for fiscal year 2007, $140,000,000.
(2) ADVANCED FUEL RECYCLING PROGRAM.—
For activities under section 21421—
(A) for fiscal year 2004, $80,000,000;
(B) for fiscal year 2005, $93,000,000;
(C) for fiscal year 2006, $106,000,000;
and
(D) for fiscal year 2007, $120,000,000.
(3) UNIVERSITY
PROGRAMS.—For activities
under section 21431—
(A) for fiscal year 2004, $35,200,000, of
which—
(i) $3,000,000 shall be for activities
under subsection (b)(1) of that section;
374
(ii) $4,275,000 shall be for activities
under subsection (b)(2) of that section;
(iii) $8,000,000 shall be for activities
under subsection (b)(3) of that section;
(iv) $500,000 shall be for activities
under subsection (b)(5) of that section;
(v) $7,000,000 shall be for activities
under subsection (c)(1) of that section;
(vi) $700,000 shall be for activities
under subsection (c)(2) of that section;
(vii) $10,000,000 shall be for activi-
ties under subsection (c)(3) of that section;
(viii) $1,000,000 shall be for activities
under subsection (d)(1) of that section;
and
(ix) $725,000 shall be for activities
under subsection (d)(2) of that section;
(B) for fiscal year 2005, $44,350,000, of
which—
(i) $3,100,000 shall be for activities
under subsection (b)(1) of that section;
(ii) $6,275,000 shall be for activities
under subsection (b)(2) of that section;
(iii) $12,000,000 shall be for activities
under subsection (b)(3) of that section;
375
(iv) $550,000 shall be for activities
under subsection (b)(5) of that section;
(v) $7,500,000 shall be for activities
under subsection (c)(1) of that section;
(vi) $1,100,000 shall be for activities
under subsection (c)(2) of that section;
(vii) $12,000,000 shall be for activi-
ties under subsection (c)(3) of that section;
(viii) $1,100,000 shall be for activities
under subsection (d)(1) of that section;
and
(ix) $725,000 shall be for activities
under subsection (d)(2) of that section;
(C) for fiscal year 2006, $49,200,000, of
which—
(i) $3,200,000 shall be for activities
under subsection (b)(1) of that section;
(ii) $7,150,000 shall be for activities
under subsection (b)(2) of that section;
(iii) $13,000,000 shall be for activities
under subsection (b)(3) of that section;
(iv) $600,000 shall be for activities
under subsection (b)(5) of that section;
(v) $8,000,000 shall be for activities
under subsection (c)(1) of that section;
376
(vi) $1,200,000 shall be for activities
under subsection (c)(2) of that section;
(vii) $14,000,000 shall be for activi-
ties under subsection (c)(3) of that section;
(viii) $1,200,000 shall be for activities
under subsection (d)(1) of that section;
and
(ix) $850,000 shall be for activities
under subsection (d)(2) of that section;
and
(D) for fiscal year 2007, $54,950,000, of
which—
(i) $3,200,000 shall be for activities
under subsection (b)(1) of that section;
(ii) $8,150,000 shall be for activities
under subsection (b)(2) of that section;
(iii) $15,000,000 shall be for activities
under subsection (b)(3) of that section;
(iv) $650,000 shall be for activities
under subsection (b)(5) of that section;
(v) $8,500,000 shall be for activities
under subsection (c)(1); of that section;
(vi) $1,300,000 shall be for activities
under subsection (c)(2) of that section;
377
(vii) $16,000,000 shall be for activi-
ties under subsection (c)(3) of that section;
(viii) $1,300,000 shall be for activities
under subsection (d)(1) of that section;
and
(ix) $850,000 shall be for activities
under subsection (d)(2) of that section.
(c) LIMIT ON USE OF FUNDS.—None of the funds
authorized under this section may be used for decommis-
sioning the Fast Flux Test Facility.
PART 2—NUCLEAR ENERGY RESEARCH
PROGRAMS
SEC. 21411. NUCLEAR ENERGY RESEARCH PROGRAMS.
(a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The
Secretary shall carry out a Nuclear Energy Research Ini-
tiative for research and development related to nuclear en-
ergy.
(b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO-
GRAM.—The Secretary shall carry out a Nuclear Energy
Plant Optimization Program to support research and de-
velopment activities addressing reliability, availability, pro-
ductivity, and component aging in existing nuclear power
plants.
(c) NUCLEAR POWER 2010 PROGRAM.—The Sec-
retary shall carry out a Nuclear Power 2010 Program,
378
consistent with recommendations in the October 2001 re-
port entitled ‘‘A Roadmap to Deploy New Nuclear Power
Plants in the United States by 2010’’ issued by the Nu-
clear Energy Research Advisory Committee of the Depart-
ment. The Program shall—
(1) rely on the expertise and capabilities of the
National Laboratories in the areas of advanced nu-
clear fuels cycles and fuels testing;
(2) pursue an approach that considers a variety
of reactor designs;
(3) include participation of international col-
laborators in research, development, and design ef-
forts as appropriate; and
(4) encourage industry participation.
(d) GENERATION IV NUCLEAR ENERGY SYSTEMS
INITIATIVE.—The Secretary shall carry out a Generation
IV Nuclear Energy Systems Initiative to develop an over-
all technology plan and to support research and develop-
ment necessary to make an informed technical decision
about the most promising candidates for eventual commer-
cial application. The Initiative shall examine advanced
proliferation-resistant and passively safe reactor designs,
including designs that—
(1) are economically competitive with other elec-
tric power generation plants;
379
(2) have higher efficiency, lower cost, and im-
proved safety compared to reactors in operation on
the date of enactment of this Act;
(3) use fuels that are proliferation resistant and
have substantially reduced production of high-level
waste per unit of output; and
(4) utilize improved instrumentation.
(e) NUCLEAR
INFRASTRUCTURE
SUPPORT.—The
Secretary shall develop and implement a strategy for the
facilities of the Office of Nuclear Energy, Science, and
Technology and shall transmit a report containing the
strategy along with the President’s budget request to the
Congress for fiscal year 2005. Such strategy shall provide
a cost-effective means for—
(1) maintaining existing facilities and infra-
structure, as needed;
(2) closing unneeded facilities;
(3) making facility upgrades and modifications;
and
(4) building new facilities.
PART 3—ADVANCED FUEL RECYCLING
SEC. 21421. ADVANCED FUEL RECYCLING PROGRAM.
(a) IN GENERAL.—The Secretary, through the Direc-
tor of the Office of Nuclear Energy, Science and Tech-
nology, shall conduct an advanced fuel recycling tech-
380
nology research and development program to evaluate pro-
liferation-resistant fuel recycling and transmutation tech-
nologies which minimize environmental or public health
and safety impacts as an alternative to aqueous reprocess-
ing technologies deployed as of the date of enactment of
this Act in support of evaluation of alternative national
strategies for spent nuclear fuel and the Generation IV
advanced reactor concepts, subject to annual review by the
Secretary’s Nuclear Energy Research Advisory Committee
or other independent entity, as appropriate. Opportunities
to enhance progress of this program through international
cooperation should be sought.
(b) REPORTS.—The Secretary shall report on the ac-
tivities of the advanced fuel recycling technology research
and development program, as part of the Department’s
annual budget submission.
PART 4—UNIVERSITY PROGRAMS
SEC. 21431. UNIVERSITY NUCLEAR SCIENCE AND ENGI-
NEERING SUPPORT.
(a) ESTABLISHMENT.—The Secretary shall support
a program to invest in human resources and infrastructure
in the nuclear sciences and engineering and related fields
(including health physics and nuclear and radiochemistry),
consistent with departmental missions related to civilian
nuclear research and development.
381
(b) DUTIES.—In carrying out the program under this
section, the Secretary shall—
(1) establish a graduate and undergraduate fel-
lowship program to attract new and talented stu-
dents;
(2) establish a Junior Faculty Research Initi-
ation Grant Program to assist institutions of higher
education in recruiting and retaining new faculty in
the nuclear sciences and engineering;
(3) support fundamental nuclear sciences and
engineering research through the Nuclear Engineer-
ing Education Research Program;
(4) encourage collaborative nuclear research
among industry, National Laboratories, and institu-
tions of higher education through the Nuclear En-
ergy Research Initiative; and
(5) support communication and outreach re-
lated to nuclear science and engineering.
(c) STRENGTHENING UNIVERSITY RESEARCH AND
TRAINING REACTORS
AND ASSOCIATED INFRASTRUC-
TURE.—Activities under this section may include—
(1) converting research reactors currently using
high-enrichment fuels to low-enrichment fuels, up-
grading operational instrumentation, and sharing of
reactors among institutions of higher education;
382
(2) providing technical assistance, in collabora-
tion with the United States nuclear industry, in reli-
censing and upgrading training reactors as part of
a student training program; and
(3) providing funding, through the Innovations
in Nuclear Infrastructure and Education Program,
for reactor improvements as part of a focused effort
that emphasizes research, training, and education.
(d) UNIVERSITY-NATIONAL
LABORATORY
INTER-
ACTIONS.—The Secretary shall develop—
(1) a sabbatical fellowship program for profes-
sors at institutions of higher education to spend ex-
tended periods of time at National Laboratories in
the areas of nuclear science and technology; and
(2) a visiting scientist program in which Na-
tional Laboratory staff can spend time in academic
nuclear science and engineering departments.
The Secretary may provide fellowships for students to
spend time at National Laboratories in the area of nuclear
science with a member of the Laboratory staff acting as
a mentor.
(e) OPERATING AND MAINTENANCE COSTS.—Fund-
ing for a research project provided under this section may
be used to offset a portion of the operating and mainte-
383
nance costs of a research reactor at an institution of high-
er education used in the research project.
PART 5—GEOLOGICAL ISOLATION OF SPENT
FUEL
SEC. 21441. GEOLOGICAL ISOLATION OF SPENT FUEL.
The Secretary shall conduct a study to determine the
feasibility of deep borehole disposal of spent nuclear fuel
and high-level radioactive waste. The study shall empha-
size geological, chemical, and hydrological characterization
of, and design of engineered structures for, deep borehole
environments. Not later than 1 year after the date of en-
actment of this Act, the Secretary shall transmit the study
to the Congress.
Subtitle E—Fossil Energy
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21501. FOSSIL ENERGY.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for fossil energy
research, development, demonstration, and commercial ap-
plication activities, other than those described in sub-
section (b), including activities authorized under this sub-
title but not including activities authorized under division
E:
(1) For fiscal year 2004, $530,000,000.
(2) For fiscal year 2005, $556,000,000.
384
(3) For fiscal year 2006, $583,000,000.
(4) For fiscal year 2007, $611,000,000.
No less than 60 percent of the amount appropriated for
each fiscal year under this subsection shall be available
for activities related to the coal research program under
section 21511(a).
(b) ULTRA-DEEPWATER AND UNCONVENTIONAL RE-
SOURCES.—
(1) OIL AND GAS LEASE INCOME.—For each of
fiscal years 2004 through 2010, from any royalties,
rents, and bonuses derived from Federal onshore
and offshore oil and gas leases issued under the
Outer Continental Shelf Lands Act and the Mineral
Leasing Act which are deposited in the Treasury,
and after distribution of any such funds as described
in paragraph (2), an amount equal to 7.5 percent of
the amount of royalties, rents, and bonuses derived
from those leases deposited in the Treasury shall be
deposited into the Ultra-Deepwater and Unconven-
tional Natural Gas and Other Petroleum Research
Fund (in this subsection referred to as the Fund).
For purposes of this subsection, the term ‘‘royalties’’
excludes proceeds from the sale of royalty production
taken in kind and royalty production that is trans-
ferred under section 27(a)(3) of the Outer Conti-
385
nental Shelf Lands Act (43 U.S.C. 1353(a)(3)).
Monies in the Fund shall be available to the Sec-
retary for obligation under part 3, without fiscal
year limitation, to the extent provided in advance in
appropriations Acts.
(2) PRIOR DISTRIBUTIONS.—The distributions
described in paragraph (1) are those required by
law—
(A) to States and to the Reclamation Fund
under the Mineral Leasing Act (30 U.S.C.
191(a)); and
(B) to other funds receiving monies from
Federal 
oil 
and 
gas 
leasing 
programs,
including—
(i) any recipients pursuant to section
8(g) of the Outer Continental Shelf Lands
Act (43 U.S.C. 1337(g));
(ii) the Land and Water Conservation
Fund, pursuant to section 2(c) of the Land
and Water Conservation Fund Act of 1965
(16 U.S.C. 4601–5(c)); and
(iii) the Historic Preservation Fund,
pursuant to section 108 of the National
Historic Preservation Act (16 U.S.C.
470h).
386
(3) ALLOCATION.—Amounts made available
under this subsection in each fiscal year shall be al-
located as follows:
(A) 67.5 percent shall be for ultra-deep-
water natural gas and other petroleum activities
under section 21522;
(B) 22.5 percent shall be for unconven-
tional natural gas and other petroleum resource
activities under section 21523; and
(C) 10 percent shall be for research com-
plementary 
to 
research 
under 
section
21521(b)(1) through (3).
(c) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
(1) FUEL CELL PROTON EXCHANGE MEMBRANE
TECHNOLOGY.—For 
activities 
under 
section
21511(c)(2), $28,000,000 for each of the fiscal
years 2004 through 2007.
(2) COAL MINING TECHNOLOGIES.—For activi-
ties under section 21512—
(A) for fiscal year 2004, $12,000,000; and
(B) for fiscal year 2005, $15,000,000.
(3) OFFICE OF ARCTIC ENERGY.—For the Of-
fice of Arctic Energy under section 3197 of the
Floyd D. Spence National Defense Authorization
387
Act for Fiscal Year 2001 (Public Law 106–398),
$25,000,000 for each of fiscal years 2004 through
2007.
(d) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for the Office of
Arctic Energy under section 3197 of the Floyd D. Spence
National Defense Authorization Act for Fiscal Year 2001
(Public Law 106–398), $25,000,000 for each of fiscal
years 2008 through 2011.
(e) LIMITS ON USE OF FUNDS.—
(1) EXCLUSIONS.—None of the funds author-
ized under this section may be used for—
(A) Fossil Energy Environmental Restora-
tion; or
(B) Import/Export Authorization.
(2) UNIVERSITY COAL MINING RESEARCH.—Of
the funds authorized under subsection (c)(2), not
less than 20 percent of the funds appropriated for
each fiscal year shall be dedicated to research and
development carried out at institutions of higher
education.
PART 2—RESEARCH PROGRAMS
SEC. 21511. FOSSIL ENERGY RESEARCH PROGRAMS.
(a) COAL RESEARCH.—(1) In addition to the Clean
Coal Power Initiative authorized under division E, the
388
Secretary shall conduct a program of research, develop-
ment, demonstration, and commercial application for coal
and power systems, including—
(A) central systems;
(B) sequestration research and development;
(C) fuels;
(D) advanced research; and
(E) advanced separation technologies.
(2) Not later than 6 months after the date of enact-
ment of this Act, the Secretary shall transmit to the Con-
gress a report providing—
(A) a detailed description of how proposals will
be solicited and evaluated;
(B) a list of activities and technical milestones;
and
(C) a description of how these activities will
complement and not duplicate the Clean Coal Power
Initiative authorized under division E.
(b) OIL AND GAS RESEARCH.—The Secretary shall
conduct a program of research, development, demonstra-
tion, and commercial application on oil and gas,
including—
(1) exploration and production;
(2) gas hydrates;
(3) reservoir life and extension;
389
(4) transportation and distribution infrastruc-
ture;
(5) ultraclean fuels;
(6) heavy oil and oil shale; and
(7) environmental research.
(c) FUEL CELLS.—(1) The Secretary shall conduct
a program of research, development, demonstration, and
commercial application on fuel cells for low-cost, high-effi-
ciency, fuel-flexible, modular power systems.
(2) The demonstrations shall include fuel cell proton
exchange membrane technology for commercial, residen-
tial, and transportation applications, and distributed gen-
eration systems, utilizing improved manufacturing produc-
tion and processes.
(d) TECHNOLOGY TRANSFER.—To the maximum ex-
tent practicable, existing technology transfer mechanisms
shall be used to implement oil and gas exploration and
production technology transfer programs.
SEC. 21512. RESEARCH AND DEVELOPMENT FOR COAL MIN-
ING TECHNOLOGIES.
(a) ESTABLISHMENT.—The Secretary shall carry out
a program of research and development on coal mining
technologies. The Secretary shall cooperate with appro-
priate Federal agencies, coal producers, trade associations,
equipment manufacturers, institutions of higher education
390
with mining engineering departments, and other relevant
entities.
(b) PROGRAM.—The research and development activi-
ties carried out under this section shall—
(1) be based on the mining research and devel-
opment priorities identified by the Mining Industry
of the Future Program and in the recommendations
from relevant reports of the National Academy of
Sciences on mining technologies; and
(2) expand mining research capabilities at insti-
tutions of higher education.
PART 3—ULTRA-DEEPWATER AND UNCONVEN-
TIONAL NATURAL GAS AND OTHER PETRO-
LEUM RESOURCES
SEC. 21521. PROGRAM AUTHORITY.
(a) IN GENERAL.—The Secretary shall carry out a
program under this part of research, development, dem-
onstration, and commercial application of technologies for
ultra-deepwater and unconventional natural gas and other
petroleum resource exploration and production, including
safe operations and environmental mitigation (including
reduction of greenhouse gas emissions and sequestration
of carbon).
(b) PROGRAM ELEMENTS.—The program under this
part shall address the following areas, including improving
391
safety and minimizing environmental impacts of activities
within each area:
(1) Ultra-deepwater technology.
(2) Ultra-deepwater architecture.
(3) Unconventional natural gas and other petro-
leum resource exploration and production tech-
nology.
(c) LIMITATION ON LOCATION OF FIELD ACTIVI-
TIES.—Field activities under the program under this part
shall be carried out only—
(1) in—
(A) areas in the territorial waters of the
United States not under any Outer Continental
Shelf moratorium as of September 30, 2002;
(B) areas onshore in the United States on
public land administered by the Secretary of the
Interior available for oil and gas leasing, where
consistent with applicable law and land use
plans; and
(C) areas onshore in the United States on
State or private land, subject to applicable law;
and
(2) with the approval of the appropriate Fed-
eral or State land management agency or private
land owner.
392
(d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY
LABORATORY.—The Secretary, through the National En-
ergy Technology Laboratory, shall carry out research com-
plementary to research under subsection (b).
(e) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this part, the Secretary shall con-
sult regularly with the Secretary of the Interior.
SEC. 21522. ULTRA-DEEPWATER PROGRAM.
(a) IN GENERAL.—The Secretary shall carry out the
activities under paragraphs (1) and (2) of section
21521(b), to maximize the value of the ultra-deepwater
natural gas and other petroleum resources of the United
States by increasing the supply of such resources and by
reducing the cost and increasing the efficiency of explo-
ration for and production of such resources, while improv-
ing safety and minimizing environmental impacts.
(b) ROLE OF THE SECRETARY.—The Secretary shall
have ultimate responsibility for, and oversight of, all as-
pects of the program under this section.
(c) ROLE OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall contract
with a consortium to—
(A) manage awards pursuant to subsection
(f)(4);
393
(B) make recommendations to the Sec-
retary for project solicitations;
(C) disburse funds awarded under sub-
section (f) as directed by the Secretary in ac-
cordance with the annual plan under subsection
(e); and
(D) carry out other activities assigned to
the program consortium by this section.
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except
as specifically authorized under this section.
(3) CONFLICT
OF
INTEREST.—(A) The Sec-
retary shall establish procedures—
(i) to ensure that each board member, offi-
cer, or employee of the program consortium
who is in a decisionmaking capacity under sub-
section (f)(3) or (4) shall disclose to the Sec-
retary any financial interests in, or financial re-
lationships with, applicants for or recipients of
awards under this section, including those of
his or her spouse or minor child, unless such re-
lationships or interests would be considered to
be remote or inconsequential; and
(ii) to require any board member, officer,
or employee with a financial relationship or in-
394
terest disclosed under clause (i) to recuse him-
self or herself from any review under subsection
(f)(3) or oversight under subsection (f)(4) with
respect to such applicant or recipient.
(B) The Secretary may disqualify an applica-
tion or revoke an award under this section if a board
member, officer, or employee has failed to comply
with 
procedures 
required 
under 
subparagraph
(A)(ii).
(d) SELECTION OF THE PROGRAM CONSORTIUM.—
(1) IN GENERAL.—The Secretary shall select
the program consortium through an open, competi-
tive process.
(2) MEMBERS.—The program consortium may
include corporations, institutions of higher edu-
cation, National Laboratories, or other research in-
stitutions. After submitting a proposal under para-
graph (4), the program consortium may not add
members without the consent of the Secretary.
(3) TAX
STATUS.—The program consortium
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of
1986.
(4) SCHEDULE.—Not later than 90 days after
the date of enactment of this Act, the Secretary
395
shall solicit proposals for the creation of the pro-
gram consortium, which must be submitted not less
than 180 days after the date of enactment of this
Act. The Secretary shall select the program consor-
tium not later than 240 days after such date of en-
actment.
(5) APPLICATION.—Applicants shall submit a
proposal including such information as the Secretary
may require. At a minimum, each proposal shall—
(A) list all members of the consortium;
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and –
(C) describe how the applicant would carry
out the activities of the program consortium
under this section.
(6) ELIGIBILITY.—To be eligible to be selected
as the program consortium, an applicant must be an
entity whose members collectively have demonstrated
capabilities in planning and managing research, de-
velopment, demonstration, and commercial applica-
tion programs in natural gas or other petroleum ex-
ploration or production.
(7) CRITERION.—The Secretary may consider
the amount of the fee an applicant proposes to re-
396
ceive under subsection (g) in selecting a consortium
under this section.
(e) ANNUAL PLAN.—
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan
prepared by the Secretary in accordance with para-
graph (2).
(2) DEVELOPMENT.—(A) Before drafting an
annual plan under this subsection, the Secretary
shall solicit specific written recommendations from
the program consortium for each element to be ad-
dressed in the plan, including those described in
paragraph (4). The Secretary may request that the
program consortium submit its recommendations in
the form of a draft annual plan.
(B) The Secretary shall submit the rec-
ommendations of the program consortium under
subparagraph (A) to the Ultra-Deepwater Advisory
Committee established under section 21525(a) for
review, and such Advisory Committee shall provide
to the Secretary written comments by a date deter-
mined by the Secretary. The Secretary may also so-
licit comments from any other experts.
397
(C) The Secretary shall consult regularly with
the program consortium throughout the preparation
of the annual plan.
(3) PUBLICATION.—The Secretary shall trans-
mit to the Congress and publish in the Federal Reg-
ister the annual plan, along with any written com-
ments received under paragraph (2)(A) and (B).
The annual plan shall be transmitted and published
not later than 60 days after the date of enactment
of an Act making appropriations for a fiscal year for
the program under this section.
(4) CONTENTS.—The annual plan shall describe
the ongoing and prospective activities of the pro-
gram under this section and shall include—
(A) a list of any solicitations for awards
that the Secretary plans to issue to carry out
research, development, demonstration, or com-
mercial application activities, including the top-
ics for such work, who would be eligible to
apply, selection criteria, and the duration of
awards; and
(B) a description of the activities expected
of the program consortium to carry out sub-
section (f)(4).
(f) AWARDS.—
398
(1) IN GENERAL.—The Secretary shall make
awards to carry out research, development, dem-
onstration, and commercial application activities
under the program under this section. The program
consortium shall not be eligible to receive such
awards, but members of the program consortium
may receive such awards.
(2) PROPOSALS.—The Secretary shall solicit
proposals for awards under this subsection in such
manner and at such time as the Secretary may pre-
scribe, in consultation with the program consortium.
(3) REVIEW.—The Secretary shall make awards
under this subsection through a competitive process,
which shall include a review by individuals selected
by the Secretary. Such individuals shall include, for
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board
members, officers, or employees of the program con-
sortium or of a member of the program consortium.
(4) OVERSIGHT.—(A) The program consortium
shall oversee the implementation of awards under
this subsection, consistent with the annual plan
under subsection (e), including disbursing funds and
monitoring activities carried out under such awards
399
for compliance with the terms and conditions of the
awards.
(B) Nothing in subparagraph (A) shall limit the
authority or responsibility of the Secretary to over-
see awards, or limit the authority of the Secretary
to review or revoke awards.
(C) The Secretary shall provide to the program
consortium the information necessary for the pro-
gram consortium to carry out its responsibilities
under this paragraph.
(g) FEE.—
(1) IN GENERAL.—To compensate the program
consortium for carrying out its activities under this
section, the Secretary shall provide to the program
consortium a fee in an amount not to exceed 7.5
percent of the amounts awarded under subsection (f)
for each fiscal year.
(2) ADVANCE.—The Secretary shall advance
funds to the program consortium upon selection of
the consortium, which shall be deducted from
amounts to be provided under paragraph (1).
(h) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to
which funds provided to the program consortium, and
funds provided under awards made under subsection (f),
400
have been expended in a manner consistent with the pur-
poses and requirements of this part. The auditor shall
transmit a report annually to the Secretary, who shall
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report.
SEC. 21523. UNCONVENTIONAL NATURAL GAS AND OTHER
PETROLEUM RESOURCES PROGRAM.
(a) IN GENERAL.—The Secretary shall carry out ac-
tivities under section 21521(b)(3), to maximize the value
of the onshore unconventional natural gas and other petro-
leum resources of the United States by increasing the sup-
ply of such resources and by reducing the cost and increas-
ing the efficiency of exploration for and production of such
resources, while improving safety and minimizing environ-
mental impacts.
(b) AWARDS.—
(1) IN
GENERAL.—The Secretary shall carry
out this section through awards made through an
open, competitive process.
(2) CONSORTIA.—In carrying out paragraph
(1), the Secretary shall give preference to making
awards to consortia.
(c) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to
which funds provided under awards made under this sec-
401
tion have been expended in a manner consistent with the
purposes and requirements of this part. The auditor shall
transmit a report annually to the Secretary, who shall
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report.
(d) FOCUS AREAS.—Awards under this section may
focus on areas including advanced coal-bed methane, deep
drilling, natural gas production from tight sands, natural
gas production from gas shales, innovative exploration and
production techniques, enhanced recovery techniques, and
environmental mitigation of unconventional natural gas
and other petroleum resources exploration and production.
(e) ACTIVITIES BY THE UNITED STATES GEOLOGI-
CAL SURVEY.—The Secretary of the Interior, through the
United States Geological Survey, shall, where appropriate,
carry out programs of long-term research to complement
the programs under this section.
SEC. 21524. ADDITIONAL REQUIREMENTS FOR AWARDS.
(a) DEMONSTRATION PROJECTS.—An application for
an award under this part for a demonstration project shall
describe with specificity the intended commercial use of
the technology to be demonstrated.
(b) FLEXIBILITY
IN LOCATING DEMONSTRATION
PROJECTS.—Subject to the limitation in section 21521(c),
a demonstration project under this part relating to an
402
ultra-deepwater technology or an ultra-deepwater architec-
ture may be conducted in deepwater depths.
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an
award under this part is made to a consortium (other than
the program consortium), the consortium shall provide to
the Secretary a signed contract agreed to by all members
of the consortium describing the rights of each member
to intellectual property used or developed under the award.
(d) TECHNOLOGY TRANSFER.—Each recipient of an
award under this part shall conduct technology transfer
activities, as appropriate, and outreach activities pursuant
to section 21809.
(e) COST-SHARING REDUCTION FOR INDEPENDENT
PRODUCERS.—In applying the cost-sharing requirements
under section 21802 to an award under this part made
solely to an independent producer of oil or gas, the Sec-
retary may reduce the applicable non-Federal requirement
in such section to a level not less than 10 percent of the
cost of the project.
SEC. 21525. ADVISORY COMMITTEES.
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 270 days
after the date of enactment of this section, the Sec-
retary shall establish an advisory committee to be
known as the Ultra-Deepwater Advisory Committee.
403
(2) MEMBERSHIP.—The advisory committee
under this subsection shall be composed of members
appointed by the Secretary and including—
(A) individuals with extensive research ex-
perience or operational knowledge of offshore
natural gas and other petroleum exploration
and production;
(B) individuals broadly representative of
the affected interests in ultra-deepwater natural
gas and other petroleum production, including
interests in environmental protection and safe
operations;
(C) no individuals who are Federal employ-
ees; and
(D) no individuals who are board members,
officers, or employees of the program consor-
tium.
(3) DUTIES.—The advisory committee under
this subsection shall—
(A) advise the Secretary on the develop-
ment and implementation of programs under
this part related to ultra-deepwater natural gas
and other petroleum resources; and
(B) carry out section 21522(e)(2)(B).
404
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve
without compensation but shall receive travel ex-
penses, including per diem in lieu of subsistence, in
accordance with applicable provisions under sub-
chapter I of chapter 57 of title 5, United States
Code.
(b) UNCONVENTIONAL
RESOURCES
TECHNOLOGY
ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 270 days
after the date of enactment of this section, the Sec-
retary shall establish an advisory committee to be
known as the Unconventional Resources Technology
Advisory Committee.
(2) MEMBERSHIP.—The advisory committee
under this subsection shall be composed of members
appointed by the Secretary and including—
(A) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource
exploration and production, including inde-
pendent oil and gas producers;
(B) individuals broadly representative of
the affected interests in unconventional natural
gas and other petroleum resource exploration
405
and production, including interests in environ-
mental protection and safe operations; and
(C) no individuals who are Federal employ-
ees.
(3) DUTIES.—The advisory committee under
this subsection shall advise the Secretary on the de-
velopment and implementation of activities under
this part related to unconventional natural gas and
other petroleum resources.
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve
without compensation but shall receive travel ex-
penses, including per diem in lieu of subsistence, in
accordance with applicable provisions under sub-
chapter I of chapter 57 of title 5, United States
Code.
(c) PROHIBITION.—No advisory committee estab-
lished under this section shall make recommendations on
funding awards to consortia or for specific projects.
SEC. 21526. LIMITS ON PARTICIPATION.
(a) IN GENERAL.—An entity shall be eligible to re-
ceive an award under this part only if the Secretary
finds—
406
(1) that the entity’s participation in the pro-
gram under this part would be in the economic in-
terest of the United States; and
(2) that either—
(A) the entity is a United States-owned en-
tity organized under the laws of the United
States; or
(B) the entity is organized under the laws
of the United States and has a parent entity or-
ganized under the laws of a country which
affords—
(i) to United States-owned entities op-
portunities, comparable to those afforded
to any other entity, to participate in any
cooperative research venture similar to
those authorized under this part;
(ii) to United States-owned entities
local investment opportunities comparable
to those afforded to any other entity; and
(iii) adequate and effective protection
for the intellectual property rights of
United States-owned entities.
(b) SENSE OF CONGRESS AND REPORT.—It is the
Sense of the Congress that ultra-deepwater technology de-
veloped under this part is to be developed primarily for
407
production of ultra-deepwater natural gas and other petro-
leum resources of the United States, and that this priority
is to be reflected in the terms of grants, contracts, and
cooperative agreements entered under this part. As part
of the annual Departmental budget submission, the Sec-
retary shall report on all steps taken to implement the pol-
icy described in this subsection.
SEC. 21527. FUND.
There is hereby established in the Treasury of the
United States a separate fund to be known as the ‘‘Ultra-
Deepwater and Unconventional Natural Gas and Other
Petroleum Research Fund’’.
SEC. 21528. TRANSFER OF ADVANCED OIL AND GAS EXPLO-
RATION AND PRODUCTION TECHNOLOGIES.
(a) ASSESSMENT.—The Secretary shall review tech-
nology programs throughout the Federal Government to
assess the suitability of technologies developed thereunder
for use in ultradeep drilling research, development, dem-
onstration, and commercial application.
(b) TECHNOLOGY TRANSFER.—Not later than 1 year
after the date of enactment of this Act, the Secretary shall
issue a solicitation seeking organizations knowledgeable of
the technology needs of the ultradeep drilling industry.
The Secretary shall select the most qualified applicant to
manage a program to transfer technologies the Secretary
408
determines suitable under subsection (a) to appropriate
entities. The organization selected under section 21522(d)
shall not be eligible for selection under this subsection.
(c) FUNDING.—From the funds available under sec-
tion 21501(b)(3)(C), $1,000,000 shall be available to
carry out this section in each of the fiscal years 2004
through 2007.
SEC. 21529. SUNSET.
The authority provided by this part shall terminate
on September 30, 2010.
SEC. 21530. DEFINITIONS.
In this part:
(1) 
DEEPWATER.—The 
term 
‘‘deepwater’’
means a water depth that is greater than 200 but
less than 1,500 meters.
(2) PROGRAM CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected
under section 21522(d).
(3) REMOTE OR INCONSEQUENTIAL.—The term
‘‘remote or inconsequential’’ has the meaning given
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18,
United States Code.
409
(4) ULTRA-DEEPWATER.—The term ‘‘ultra-
deepwater’’ means a water depth that is equal to or
greater than 1,500 meters.
(5) ULTRA-DEEPWATER
ARCHITECTURE.—The
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or
production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths.
(6) ULTRA-DEEPWATER
TECHNOLOGY.—The
term ‘‘ultra-deepwater technology’’ means a discrete
technology that is specially suited to address one or
more challenges associated with the exploration for,
or production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths.
(7) UNCONVENTIONAL
NATURAL
GAS
AND
OTHER PETROLEUM RESOURCE.—The term ‘‘uncon-
ventional natural gas and other petroleum resource’’
means natural gas and other petroleum resource lo-
cated onshore in an economically inaccessible geo-
logical formation.
Subtitle F—Science
PART 1—AUTHORIZATION OF APPROPRIATIONS
SEC. 21601. SCIENCE.
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for research, de-
410
velopment, demonstration, and commercial application ac-
tivities of the Office of Science, including activities author-
ized under this subtitle, including the amounts authorized
under the amendment made by section 21634(c)(2)(C),
and including basic energy sciences, advanced scientific
and computing research, biological and environmental re-
search, fusion energy sciences, high energy physics, nu-
clear physics, and research analysis and infrastructure
support:
(1) For fiscal year 2004, $3,785,000,000.
(2) For fiscal year 2005, $4,153,000,000.
(3) For fiscal year 2006, $4,618,000,000.
(4) For fiscal year 2007, $5,310,000,000.
(b) ALLOCATIONS.—From amounts authorized under
subsection (a), the following sums are authorized:
(1) FUSION ENERGY SCIENCES.—(A) For the
Fusion Energy Sciences Program, excluding activi-
ties under sections 21611 and 21612—
(i) for fiscal year 2004, $276,000,000;
(ii) for fiscal year 2005, $300,000,000;.
(iii) for fiscal year 2006, $340,000,000;
and
(iv) for fiscal year 2007, $350,000,000.
(B) For activities under section 21611 and for
the project described in section 21612—
411
(i) for fiscal year 2004, $12,000,000;
(ii) for fiscal year 2005, $20,000,000;
(iii) for fiscal year 2006, $50,000,000; and
(iv) for fiscal year 2007, $75,000,000.
(2) SPALLATION NEUTRON SOURCE.—
(A) CONSTRUCTION.—For construction of
the Spallation Neutron Source—
(i) for fiscal year 2004, $124,600,000;
(ii) for fiscal year 2005, $79,800,000;
and
(iii) for fiscal year 2006, $41,100,000
for completion of construction.
(B) 
OTHER
PROJECT
FUNDING.—For
other project costs (including research and de-
velopment necessary to complete the project,
preoperations costs, and capital equipment re-
lated to construction) of the Spallation Neutron
Source, $103,279,000 for the period encom-
passing fiscal years 2003 through 2006, to re-
main available until expended through Sep-
tember 30, 2006.
(3) NANOTECHNOLOGY RESEARCH AND DEVEL-
OPMENT.—For activities under section 21633—
(A) for fiscal year 2004, $265,000,000;
(B) for fiscal year 2005, $292,000,000;
412
(C) for fiscal year 2006, $322,000,000;
and
(D) for fiscal year 2007, $355,000,000.
(4) SCIENCE AND TECHNOLOGY SCHOLARSHIP
PROGRAM.—For activities under section 21636—
(A) for fiscal year 2004, $800,000;
(B) for fiscal year 2005, $1,600,000;
(C) for fiscal year 2006, $2,000,000; and
(D) for fiscal year 2007, $2,000,000.
(5) GENOMES TO LIFE.—For activities under
section 21641—
(A) $100,000,000 for fiscal year 2004; and
(B) such sums as may be necessary for fis-
cal years 2005 through 2007.
(c) LIMITS ON USE OF FUNDS.—Of the funds au-
thorized under subsection (b)(1), no funds shall be avail-
able for implementation of the plan described in section
21612.
PART 2—FUSION ENERGY SCIENCES
SEC. 21611. ITER.
(a) IN GENERAL.—The United States is authorized
to participate in ITER in accordance with the provisions
of this section.
413
(b) AGREEMENT.—(1) The Secretary is authorized to
negotiate an agreement for United States participation in
ITER.
(2) Any agreement for United States participation in
ITER shall, at a minimum—
(A) clearly define the United States financial
contribution to construction and operating costs;
(B) ensure that the share of ITER’s high-tech-
nology components manufactured in the United
States is at least proportionate to the United States
financial contribution to ITER;
(C) ensure that the United States will not be fi-
nancially responsible for cost overruns in compo-
nents manufactured in other ITER participating
countries;
(D) guarantee the United States full access to
all data generated by ITER;
(E) enable United States researchers to propose
and carry out an equitable share of the experiments
at ITER;
(F) provide the United States with a role in all
collective decisionmaking related to ITER; and
(G) describe the process for discontinuing or
decommissioning ITER and any United States role
in those processes.
414
(c) PLAN.—The Secretary, in consultation with the
Fusion Energy Sciences Advisory Committee, shall de-
velop a plan for the participation of United States sci-
entists in ITER that shall include the United States re-
search agenda for ITER, methods to evaluate whether
ITER is promoting progress toward making fusion a reli-
able and affordable source of power, and a description of
how work at ITER will relate to other elements of the
United States fusion program. The Secretary shall request
a review of the plan by the National Academy of Sciences.
(d) LIMITATION.—No funds shall be expended for the
construction of ITER until the Secretary has transmitted
to the Congress—
(1) the agreement negotiated pursuant to sub-
section (b) and 120 days have elapsed since that
transmission;
(2) a report describing the management struc-
ture of ITER and providing a fixed dollar estimate
of the cost of United States participation in the con-
struction of ITER, and 120 days have elapsed since
that transmission;
(3) a report describing how United States par-
ticipation in ITER will be funded without reducing
funding for other programs in the Office of Science,
415
including other fusion programs, and 60 days have
elapsed since that transmission; and
(4) the plan required by subsection (c) (but not
the National Academy of Sciences review of that
plan), and 60 days have elapsed since that trans-
mission.
(e) DEFINITIONS.—In this section—
(1) the term ‘‘construction’’ means the physical
construction of the ITER facility, and the physical
construction, purchase, or manufacture of equipment
or components that are specifically designed for the
ITER facility, but does not mean the design of the
facility, equipment, or components; and
(2) the term ‘‘ITER’’ means the international
burning plasma fusion research project in which the
President announced United States participation on
January 30, 2003.
SEC. 21612. PLAN FOR FUSION EXPERIMENT.
(a) IN GENERAL.—If at any time during the negotia-
tions on ITER, the Secretary determines that construction
and operation of ITER is unlikely or infeasible, the Sec-
retary shall send to Congress, as part of the budget re-
quest for the following year, a plan for implementing the
domestic burning plasma experiment known as FIRE, in-
cluding costs and schedules for such a plan. The Secretary
416
shall refine such plan in full consultation with the Fusion
Energy Sciences Advisory Committee and shall also trans-
mit such plan to the National Academy of Sciences for
review.
(b) DEFINITIONS.—As used in this section—
(1) the term ‘‘ITER’’ has the meaning given
that term in section 21611; and
(2) the term ‘‘FIRE’’ means the Fusion Igni-
tion Research Experiment, the fusion research ex-
periment for which design work has been supported
by the Department as a possible alternative burning
plasma experiment in the event that ITER fails to
move forward.
SEC. 21613. PLAN FOR FUSION ENERGY SCIENCES PRO-
GRAM.
(a) DECLARATION OF POLICY.—It shall be the policy
of the United States to conduct research, development,
demonstration, and commercial application to provide for
the scientific, engineering, and commercial infrastructure
necessary to ensure that the United States is competitive
with other nations in providing fusion energy for its own
needs and the needs of other nations, including by dem-
onstrating electric power or hydrogen production for the
United States energy grid utilizing fusion energy at the
earliest date possible.
417
(b) FUSION ENERGY PLAN.—
(1) IN GENERAL.—Within 6 months after the
date of enactment of this Act, the Secretary shall
transmit to Congress a plan for carrying out the pol-
icy set forth in subsection (a), including cost esti-
mates, proposed budgets, potential international
partners, and specific programs for implementing
such policy.
(2) REQUIREMENTS OF PLAN.—Such plan shall
also ensure that—
(A) existing fusion research facilities are
more fully utilized;
(B) fusion science, technology, theory, ad-
vanced computation, modeling, and simulation
are strengthened;
(C) new magnetic and inertial fusion re-
search facilities are selected based on scientific
innovation, cost effectiveness, and their poten-
tial to advance the goal of practical fusion en-
ergy at the earliest date possible;
(D) such facilities that are selected are
funded at a cost-effective rate;
(E) communication of scientific results and
methods between the fusion energy science com-
418
munity and the broader scientific and tech-
nology communities is improved;
(F) inertial confinement fusion facilities
are utilized to the extent practicable for the
purpose of inertial fusion energy research and
development; and
(G) attractive alternative inertial and mag-
netic fusion energy approaches are more fully
explored.
(3) REPORT ON FUSION MATERIALS AND TECH-
NOLOGY PROJECT.—In addition, the plan required
by this subsection shall also address the status of,
and to the degree possible, the costs and schedules
for—
(A) the design and implementation of
international or national facilities for the test-
ing of fusion materials; and
(B) the design and implementation of
international or national facilities for the test-
ing and development of key fusion technologies.
PART 3—SPALLATION NEUTRON SOURCE
SEC. 21621. DEFINITION.
For the purposes of this part, the term ‘‘Spallation
Neutron Source’’ means Department Project 99–E–334,
Oak Ridge National Laboratory, Oak Ridge, Tennessee.
419
SEC. 21622. REPORT.
The Secretary shall report on the Spallation Neutron
Source as part of the Department’s annual budget submis-
sion, including a description of the achievement of mile-
stones, a comparison of actual costs to estimated costs,
and any changes in estimated project costs or schedule.
SEC. 21623. LIMITATIONS.
The total amount obligated by the Department, in-
cluding prior year appropriations, for the Spallation Neu-
tron Source may not exceed—
(1) $1,192,700,000 for costs of construction;
(2) $219,000,000 for other project costs; and
(3) $1,411,700,000 for total project cost.
PART 4—MISCELLANEOUS
SEC. 21631. FACILITY AND INFRASTRUCTURE SUPPORT
FOR NONMILITARY ENERGY LABORATORIES.
(a) FACILITY POLICY.—The Secretary shall develop
and implement a strategy for the nonmilitary energy lab-
oratories and facilities of the Office of Science. Such strat-
egy shall provide a cost-effective means for—
(1) maintaining existing facilities and infra-
structure, as needed;
(2) closing unneeded facilities;
(3) making facility modifications; and
(4) building new facilities.
(b) REPORT.—
420
(1) TRANSMITTAL.—The Secretary shall pre-
pare and transmit, along with the President’s budget
request to the Congress for fiscal year 2005, a re-
port containing the strategy developed under sub-
section (a).
(2) CONTENTS.—For each nonmilitary energy
laboratory and facility, such report shall contain—
(A) the current priority list of proposed fa-
cilities and infrastructure projects, including
cost and schedule requirements;
(B) a current ten-year plan that dem-
onstrates the reconfiguration of its facilities and
infrastructure to meet its missions and to ad-
dress its long-term operational costs and return
on investment;
(C) the total current budget for all facili-
ties and infrastructure funding; and
(D) the current status of each facilities
and infrastructure project compared to the
original baseline cost, schedule, and scope.
SEC. 21632. RESEARCH REGARDING PRECIOUS METAL CA-
TALYSIS.
From the amounts authorized to be appropriated to
the Secretary under section 21601, such sums as may be
necessary for each of the fiscal years 2004, 2005, and
421
2006 may be used to carry out research in the use of pre-
cious metals (excluding platinum, palladium, and rho-
dium) in catalysis.
SEC. 21633. NANOTECHNOLOGY RESEARCH AND DEVELOP-
MENT.
(a) IN GENERAL.—The Secretary, acting through the
Office of Science, shall implement a Nanotechnology Re-
search 
and 
Development 
Program 
to 
promote
nanotechnology research, development, demonstration,
education, technology transfer, and commercial applica-
tion activities as necessary to ensure continued United
States leadership in nanotechnology across scientific and
engineering disciplines.
(b) PROGRAM ACTIVITIES.—The activities of the
Nanotechnology Research and Development Program shall
be designed to—
(1) 
provide 
sustained 
support 
for
nanotechnology research and development through—
(A) grants to individual investigators and
interdisciplinary teams of investigators; and
(B) establishment of interdisciplinary re-
search centers and advanced technology user fa-
cilities;
422
(2) ensure that solicitation and evaluation of
proposals under the Program encourage interdiscipli-
nary research;
(3) expand education and training of under-
graduate and graduate students in interdisciplinary
nanotechnology science and engineering;
(4) accelerate the commercial application of
nanotechnology innovations in the private sector;
(5) ensure that societal and ethical concerns
will be addressed as the technology is developed by—
(A) establishing a research program to
identify societal and ethical concerns related to
nanotechnology, and ensuring that the results
of such research are widely disseminated; and
(B) integrating, insofar as possible, re-
search on societal and ethical concerns with
nanotechnology research and development; and
(6) ensure that the potential of nanotechnology
to produce or facilitate the production of clean, inex-
pensive 
energy 
is 
realized 
by 
supporting
nanotechnology energy applications research and de-
velopment.
(c) 
DEFINITIONS.—For 
the 
purposes 
of 
this
section—
423
(1) the term ‘‘nanotechnology’’ means science
and engineering aimed at creating materials, devices,
and systems at the atomic and molecular level; and
(2) the term ‘‘advanced technology user facil-
ity’’ means a nanotechnology research and develop-
ment facility supported, in whole or in part, by Fed-
eral funds that is open to all United States research-
ers on a competitive, merit-reviewed basis.
(d) REPORT.—Within 2 years after the date of enact-
ment of this Act, the Secretary shall transmit to the Con-
gress a report describing the projects to identify societal
and ethical concerns related to nanotechnology and the
funding provided to support these projects.
SEC. 21634. ADVANCED SCIENTIFIC COMPUTING FOR EN-
ERGY MISSIONS.
(a) IN GENERAL.—The Secretary, acting through the
Office of Science, shall support a program to advance the
Nation’s computing capability across a diverse set of
grand challenge computationally based science problems
related to departmental missions.
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car-
rying out the program under this section, the Office of
Science shall—
(1) advance basic science through computation
by developing software to solve grand challenge
424
science problems on new generations of computing
platforms;
(2) enhance the foundations for scientific com-
puting by developing the basic mathematical and
computing systems software needed to take full ad-
vantage of the computing capabilities of computers
with peak speeds of 100 teraflops or more, some of
which may be unique to the scientific problem of in-
terest;
(3) enhance national collaboratory and net-
working capabilities by developing software to inte-
grate geographically separated researchers into ef-
fective research teams and to facilitate access to and
movement and analysis of large (petabyte) data sets;
(4) develop and maintain a robust scientific
computing hardware infrastructure to ensure that
the computing resources needed to address depart-
mental missions are available; and
(5) explore new computing approaches and
technologies that promise to advance scientific com-
puting.
(c) HIGH-PERFORMANCE COMPUTING ACT OF 1991
AMENDMENTS.—The High-Performance Computing Act
of 1991 is amended—
(1) in section 4 (15 U.S.C. 5503)—
425
(A) in paragraph (3)—
(i) by striking ‘‘means’’ and inserting
‘‘and ‘networking and information tech-
nology’ mean’’; and
(ii) by striking ‘‘(including vector
supercomputers and large scale parallel
systems)’’; and
(B) in paragraph (4), by striking ‘‘packet
switched’’; and
(2) in section 203 (15 U.S.C. 5523)—
(A) in subsection (a), by striking all after
‘‘As part of the’’ and inserting ‘‘Networking
and Information Technology Research and De-
velopment Program, the Secretary of Energy
shall conduct basic and applied research in net-
working and information technology, with em-
phasis on—
‘‘(1) supporting fundamental research in the
physical sciences and engineering, and energy appli-
cations;
‘‘(2) providing supercomputer access and ad-
vanced communication capabilities and facilities to
scientific researchers; and
‘‘(3) developing tools for distributed scientific
collaboration.’’;
426
(B) in subsection (b), by striking ‘‘Pro-
gram’’ and inserting ‘‘Networking and Informa-
tion Technology Research and Development
Program’’; and
(C) by amending subsection (e) to read as
follows:
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary of En-
ergy to carry out the Networking and Information Tech-
nology Research and Development Program such sums as
may be necessary for fiscal years 2004 through 2007.’’.
(d) COORDINATION.—The Secretary shall ensure that
the program under this section is integrated and con-
sistent with—
(1) the Accelerated Strategic Computing Initia-
tive of the National Nuclear Security Administra-
tion; and
(2) other national efforts related to advanced
scientific computing for science and engineering.
(e) REPORT.—(1) Before undertaking any new initia-
tive to develop new advanced architecture for high-speed
computing, the Secretary, through the Director of the Of-
fice of Science, shall transmit a report to the Congress
describing—
427
(A) the expected duration and cost of the initia-
tive;
(B) the technical milestones the initiative is de-
signed to achieve;
(C) how institutions of higher education and
private firms will participate in the initiative; and
(D) why the goals of the initiative could not be
achieved through existing programs.
(2) No funds may be expended on any initiative de-
scribed in paragraph (1) until 30 days after the report
required by that paragraph is transmitted to the Congress.
SEC. 21635. NITROGEN FIXATION.
The Secretary, acting through the Office of Science,
shall support a program of research, development, dem-
onstration, and commercial application on biological nitro-
gen fixation, including plant genomics research relevant
to the development of commercial crop varieties with en-
hanced nitrogen fixation efficiency and ability.
SEC. 21636. DEPARTMENT OF ENERGY SCIENCE AND TECH-
NOLOGY SCHOLARSHIP PROGRAM.
(a) ESTABLISHMENT OF PROGRAM.—
(1) IN GENERAL.—The Secretary shall establish
a Department of Energy Science and Technology
Scholarship Program to award scholarships to indi-
428
viduals that is designed to recruit and prepare stu-
dents for careers in the Department.
(2) COMPETITIVE PROCESS.—Individuals shall
be selected to receive scholarships under this section
through a competitive process primarily on the basis
of academic merit, with consideration given to finan-
cial need and the goal of promoting the participation
of individuals identified in section 33 or 34 of the
Science and Engineering Equal Opportunities Act
(42 U.S.C. 1885a or 1885b).
(3) SERVICE AGREEMENTS.—To carry out the
Program the Secretary shall enter into contractual
agreements with individuals selected under para-
graph (2) under which the individuals agree to serve
as full-time employees of the Department, for the
period described in subsection (f)(1), in positions
needed by the Department and for which the individ-
uals are qualified, in exchange for receiving a schol-
arship.
(b) SCHOLARSHIP ELIGIBILITY.—In order to be eligi-
ble to participate in the Program, an individual must—
(1) be enrolled or accepted for enrollment as a
full-time student at an institution of higher edu-
cation in an academic program or field of study de-
429
scribed in the list made available under subsection
(d);
(2) be a United States citizen; and
(3) at the time of the initial scholarship award,
not be a Federal employee as defined in section
2105 of title 5 of the United States Code.
(c) APPLICATION REQUIRED.—An individual seeking
a scholarship under this section shall submit an applica-
tion to the Secretary at such time, in such manner, and
containing such information, agreements, or assurances as
the Secretary may require.
(d) ELIGIBLE ACADEMIC PROGRAMS.—The Secretary
shall make publicly available a list of academic programs
and fields of study for which scholarships under the Pro-
gram may be utilized, and shall update the list as nec-
essary.
(e) SCHOLARSHIP REQUIREMENT.—
(1) IN GENERAL.—The Secretary may provide a
scholarship under the Program for an academic year
if the individual applying for the scholarship has
submitted to the Secretary, as part of the applica-
tion required under subsection (c), a proposed aca-
demic program leading to a degree in a program or
field of study on the list made available under sub-
section (d).
430
(2) DURATION OF ELIGIBILITY.—An individual
may not receive a scholarship under this section for
more than 4 academic years, unless the Secretary
grants a waiver.
(3) 
SCHOLARSHIP
AMOUNT.—The 
dollar
amount of a scholarship under this section for an
academic year shall be determined under regulations
issued by the Secretary, but shall in no case exceed
the cost of attendance.
(4) AUTHORIZED
USES.—A scholarship pro-
vided under this section may be expended for tuition,
fees, and other authorized expenses as established by
the Secretary by regulation.
(5) CONTRACTS REGARDING DIRECT PAYMENTS
TO INSTITUTIONS.—The Secretary may enter into a
contractual agreement with an institution of higher
education under which the amounts provided for a
scholarship under this section for tuition, fees, and
other authorized expenses are paid directly to the in-
stitution with respect to which the scholarship is
provided.
(f) PERIOD OF OBLIGATED SERVICE.—
(1) DURATION
OF
SERVICE.—The period of
service for which an individual shall be obligated to
serve as an employee of the Department is, except
431
as provided in subsection (h)(2), 24 months for each
academic year for which a scholarship under this
section is provided.
(2) SCHEDULE FOR SERVICE.—(A) Except as
provided in subparagraph (B), obligated service
under paragraph (1) shall begin not later than 60
days after the individual obtains the educational de-
gree for which the scholarship was provided.
(B) The Secretary may defer the obligation of
an individual to provide a period of service under
paragraph (1) if the Secretary determines that such
a deferral is appropriate. The Secretary shall pre-
scribe the terms and conditions under which a serv-
ice obligation may be deferred through regulation.
(g) PENALTIES
FOR
BREACH
OF
SCHOLARSHIP
AGREEMENT.—
(1) FAILURE TO COMPLETE ACADEMIC TRAIN-
ING.—Scholarship recipients who fail to maintain a
high level of academic standing, as defined by the
Secretary by regulation, who are dismissed from
their educational institutions for disciplinary rea-
sons, or who voluntarily terminate academic training
before graduation from the educational program for
which the scholarship was awarded, shall be in
breach of their contractual agreement and, in lieu of
432
any service obligation arising under such agreement,
shall be liable to the United States for repayment
within 1 year after the date of default of all scholar-
ship funds paid to them and to the institution of
higher education on their behalf under the agree-
ment, except as provided in subsection (h)(2). The
repayment period may be extended by the Secretary
when determined to be necessary, as established by
regulation.
(2) FAILURE
TO
BEGIN
OR
COMPLETE
THE
SERVICE
OBLIGATION
OR
MEET
THE
TERMS
AND
CONDITIONS
OF
DEFERMENT.—Scholarship recipi-
ents who, for any reason, fail to begin or complete
their service obligation after completion of academic
training, or fail to comply with the terms and condi-
tions of deferment established by the Secretary pur-
suant to subsection (f)(2)(B), shall be in breach of
their contractual agreement. When recipients breach
their agreements for the reasons stated in the pre-
ceding sentence, the recipient shall be liable to the
United States for an amount equal to—
(A) the total amount of scholarships re-
ceived by such individual under this section;
plus
433
(B) the interest on the amounts of such
awards which would be payable if at the time
the awards were received they were loans bear-
ing interest at the maximum legal prevailing
rate, as determined by the Treasurer of the
United States,
multiplied by 3.
(h) WAIVER OR SUSPENSION OF OBLIGATION.—
(1) DEATH OF INDIVIDUAL.—Any obligation of
an individual incurred under the Program (or a con-
tractual agreement thereunder) for service or pay-
ment shall be canceled upon the death of the indi-
vidual.
(2) IMPOSSIBILITY OR EXTREME HARDSHIP.—
The Secretary shall by regulation provide for the
partial or total waiver or suspension of any obliga-
tion of service or payment incurred by an individual
under the Program (or a contractual agreement
thereunder) whenever compliance by the individual is
impossible or would involve extreme hardship to the
individual, or if enforcement of such obligation with
respect to the individual would be contrary to the
best interests of the Government.
(i) DEFINITIONS.—In this section the following defi-
nitions apply:
434
(1) COST OF ATTENDANCE.—The term ‘‘cost of
attendance’’ has the meaning given that term in sec-
tion 472 of the Higher Education Act of 1965 (20
U.S.C. 1087ll).
(2) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the
meaning given that term in section 101(a) of the
Higher Education Act of 1965 (20 U.S.C. 1001(a)).
(3) PROGRAM.—The term ‘‘Program’’ means
the Department of Energy Science and Technology
Scholarship Program established under this section.
PART 5—GENOMES TO LIFE
SEC. 21641. GENOMES TO LIFE.
(a) PROGRAM.—
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a research, development, and demonstration
program in genetics, protein science, and computa-
tional biology of microbes and plants to support the
energy and environmental mission of the Depart-
ment.
(2) GRANTS.—The program shall support indi-
vidual investigators and multidisciplinary teams of
investigators through competitive, merit-reviewed
grants.
435
(3) CONSULTATION.—In carrying out the pro-
gram, the Secretary shall consult with other Federal
agencies that conduct genetic and protein research.
(b) GOALS.—The program shall have the goal of de-
veloping technologies and methods based on the biological
functions of microbes and plants that —
(1) can facilitate the production of fuels, includ-
ing hydrogen;
(2) convert carbon dioxide to organic carbon;
and
(3) detoxify soils and water at Department fa-
cilities contaminated with heavy metals and radio-
logical materials.
(c) PLAN.—
(1) DEVELOPMENT OF PLAN.—Within one year
after the date of enactment of this Act, the Sec-
retary shall prepare and transmit to the Congress a
research plan describing how the program author-
ized pursuant to this section will be undertaken to
accomplish the program goals established in sub-
section (b).
(2) REVIEW
OF
PLAN.—The Secretary shall
contract with the National Academy of Sciences to
review the research plan developed under this sub-
section. The Secretary shall transmit the review to
436
the Congress not later than 6 months after trans-
mittal of the research plan under paragraph (1),
along with the Secretary’s response to the rec-
ommendations contained in the review.
(d) FACILITIES.—In carrying out the program under
this section, the Secretary may construct, acquire, and op-
erate facilities necessary to carry out this section.
(e) PROHIBITION ON BIOMEDICAL OR HUMAN SUB-
JECT RESEARCH.—(1) In carrying out this program, the
Secretary shall not conduct biomedical research.
(2) Nothing in this section shall authorize the Sec-
retary to conduct any research or demonstrations—
(A) on human cells or human subjects; or
(B) designed to have any application with re-
spect to human cells or human subjects.
Subtitle G—Energy and
Environment
SEC. 21701. AUTHORIZATION OF APPROPRIATIONS.
(a) UNITED STATES-MEXICO ENERGY TECHNOLOGY
COOPERATION.—The following sums are authorized to be
appropriated to the Secretary to carry out activities under
section 21702:
(1) For fiscal year 2004, $5,000,000.
(2) For fiscal year 2005, $6,000,000.
(3) For fiscal year 2006, $6,000,000.
437
(4) For fiscal year 2007, $6,000,000.
(b) WASTE
REDUCTION
AND
USE
OF
ALTER-
NATIVES.—There are authorized to be appropriated to the
Secretary to carry out activities under section 21703,
$500,000 for fiscal year 2004.
SEC. 21702. UNITED STATES-MEXICO ENERGY TECHNOLOGY
COOPERATION.
(a) PROGRAM.—The Secretary shall establish a re-
search, development, demonstration, and commercial ap-
plication program to be carried out in collaboration with
entities in Mexico and the United States to promote en-
ergy efficient, environmentally sound economic develop-
ment along the United States-Mexico border.
(b) PROGRAM MANAGEMENT.—The program under
subsection (a) shall be managed by the Department of En-
ergy Carlsbad Environmental Management Field Office.
(c) TECHNOLOGY
TRANSFER.—In carrying out
projects and activities under this section, the Secretary
shall assess the applicability of technology developed under
the Environmental Management Science Program of the
Department.
(d) INTELLECTUAL PROPERTY.—In carrying out this
section, the Secretary shall comply with the requirements
of any agreement entered into between the United States
and Mexico regarding intellectual property protection.
438
SEC. 21703. WASTE REDUCTION AND USE OF ALTER-
NATIVES.
(a) GRANT AUTHORITY.—The Secretary is author-
ized to make a single grant to a qualified institution to
examine and develop the feasibility of burning post-con-
sumer carpet in cement kilns as an alternative energy
source. The purposes of the grant shall include
determining—
(1) how post-consumer carpet can be burned
without disrupting kiln operations;
(2) the extent to which overall kiln emissions
may be reduced;
(3) the emissions of air pollutants and other
relevant environmental impacts; and
(4) how this process provides benefits to both
cement kiln operations and carpet suppliers.
(b) QUALIFIED INSTITUTION.—For the purposes of
subsection (a), a qualified institution is a research-inten-
sive institution of higher education with demonstrated ex-
pertise in the fields of fiber recycling and logistical mod-
eling of carpet waste collection and preparation.
SEC. 21704. COAL GASIFICATION.
The Secretary is authorized to provide loan guaran-
tees for a project to produce energy from a plant using
integrated gasification combined cycle technology of at
least 400 megawatts in capacity that produces power at
439
competitive rates in deregulated energy generation mar-
kets and that does not receive any subsidy (direct or indi-
rect) from ratepayers.
SEC. 21705. PETROLEUM COKE GASIFICATION.
The Secretary is authorized to provide loan guaran-
tees for at least one petroleum coke gasification
polygeneration project.
SEC. 21706. OTHER BIOPOWER AND BIOENERGY.
The Secretary shall conduct a program to assist in
the planning, design, and implementation of projects to
convert rice straw, rice hulls, soybean matter, poultry fat,
poultry waste, sugarcane bagasse, forest thinnings, and
barley grain into biopower and biofuels.
SEC. 21707. COAL TECHNOLOGY LOAN.
There are authorized to be appropriated to the Sec-
retary $125,000,000 to provide a loan to the owner of the
experimental plant constructed under United States De-
partment of Energy cooperative agreement number DE–
FC22–91PC99544 on such terms and conditions as the
Secretary determines, including interest rates and upfront
payments.
SEC. 21708. FUEL CELL TEST CENTER.
(a) STUDY.—Not later than 1 year after the date of
enactment of this Act, the Secretary shall transmit to the
Congress a report on the results of a study of the estab-
440
lishment of a test center for next-generation fuel cells at
an institution of higher education that has available a con-
tinuous source of hydrogen and access to the electric
transmission grid. Such report shall include a conceptual
design for such test center and a projection of the costs
of establishing the test center.
(b) AUTHORIZATION
OF APPROPRIATIONS.—There
are authorized to be appropriated to the Secretary for car-
rying out this section $500,000.
SEC. 21709. FUEL CELL TRANSIT BUS DEMONSTRATION.
The Secretary shall establish a transit bus dem-
onstration program to make competitive, merit-based
awards for five-year projects to demonstrate not more
than 12 fuel cell transit buses (and necessary infrastruc-
ture) in three geographically dispersed localities. In select-
ing projects under this section, the Secretary shall give
preference to projects that are most likely to mitigate con-
gestion and improve air quality. There are authorized to
be appropriated to the Secretary $10,000,000 for each of
the fiscal years 2004 through 2007 for carrying out this
section.
Subtitle H—Management
SEC. 21801. AVAILABILITY OF FUNDS.
Funds authorized to be appropriated to the Depart-
ment under this title shall remain available until expended.
441
SEC. 21802. COST SHARING.
(a) RESEARCH AND DEVELOPMENT.—Except as oth-
erwise provided in this title, for research and development
programs carried out under this title, the Secretary shall
require a commitment from non-Federal sources of at
least 20 percent of the cost of the project. The Secretary
may reduce or eliminate the non-Federal requirement
under this subsection if the Secretary determines that the
research and development is of a basic or fundamental na-
ture.
(b) DEMONSTRATION
AND COMMERCIAL APPLICA-
TION.—Except as otherwise provided in this title, the Sec-
retary shall require at least 50 percent of the costs directly
and specifically related to any demonstration or commer-
cial application project under this title to be provided from
non-Federal sources. The Secretary may reduce the non-
Federal requirement under this subsection if the Secretary
determines that the reduction is necessary and appropriate
considering the technological risks involved in the project
and is necessary to meet the objectives of this title.
(c) CALCULATION OF AMOUNT.—In calculating the
amount of the non-Federal commitment under subsection
(a) or (b), the Secretary may include personnel, services,
equipment, and other resources.
442
SEC. 21803. MERIT REVIEW OF PROPOSALS.
Awards of funds authorized under this title shall be
made only after an impartial review of the scientific and
technical merit of the proposals for such awards has been
carried out by or for the Department.
SEC. 21804. EXTERNAL TECHNICAL REVIEW OF DEPART-
MENTAL PROGRAMS.
(a) NATIONAL ENERGY RESEARCH AND DEVELOP-
MENT ADVISORY BOARDS.—(1) The Secretary shall estab-
lish one or more advisory boards to review Department
research, development, demonstration, and commercial ap-
plication programs in the following areas:
(A) Energy efficiency.
(B) Renewable energy.
(C) Nuclear energy.
(D) Fossil energy.
(2) The Secretary may designate an existing advisory
board within the Department to fulfill the responsibilities
of an advisory board under this subsection, and may enter
into appropriate arrangements with the National Academy
of Sciences to establish such an advisory board.
(b) OFFICE OF SCIENCE ADVISORY COMMITTEES.—
(1) UTILIZATION OF EXISTING COMMITTEES.—
The Secretary shall continue to use the scientific
program advisory committees chartered under the
Federal Advisory Committee Act by the Office of
443
Science to oversee research and development pro-
grams under that Office.
(2) SCIENCE ADVISORY COMMITTEE.—
(A) ESTABLISHMENT.—There shall be in
the Office of Science a Science Advisory Com-
mittee that includes the chairs of each of the
advisory committees described in paragraph (1).
(B) RESPONSIBILITIES.—The Science Ad-
visory Committee shall—
(i) serve as the science advisor to the
Assistant Secretary for Science created
under section 209 of the Department of
Energy Organization Act, as added by sec-
tion 22001 of this Act;
(ii) advise the Assistant Secretary
with respect to the well-being and manage-
ment of the National Laboratories and sin-
gle-purpose research facilities;
(iii) advise the Assistant Secretary
with respect to education and workforce
training activities required for effective
short-term and long-term basic and applied
research activities of the Office of Science;
and
444
(iv) advise the Assistant Secretary
with respect to the well being of the uni-
versity research programs supported by the
Office of Science.
(c) MEMBERSHIP.—Each advisory board under this
section shall consist of persons with appropriate expertise
representing a diverse range of interests.
(d) MEETINGS
AND
PURPOSES.—Each advisory
board under this section shall meet at least semi-annually
to review and advise on the progress made by the respec-
tive research, development, demonstration, and commer-
cial application program or programs. The advisory board
shall also review the measurable cost and performance-
based goals for such programs as established under sec-
tion 20002, and the progress on meeting such goals.
(e) PERIODIC REVIEWS
AND ASSESSMENTS.—The
Secretary shall enter into appropriate arrangements with
the National Academy of Sciences to conduct periodic re-
views and assessments of the programs authorized by this
title, the measurable cost and performance-based goals for
such programs as established under section 20002, if any,
and the progress on meeting such goals. Such reviews and
assessments shall be conducted every 5 years, or more
often as the Secretary considers necessary, and the Sec-
445
retary shall transmit to the Congress reports containing
the results of all such reviews and assessments.
SEC. 21805. IMPROVED COORDINATION OF TECHNOLOGY
TRANSFER ACTIVITIES.
(a) TECHNOLOGY TRANSFER COORDINATOR.—The
Secretary shall designate a Technology Transfer Coordi-
nator to perform oversight of and policy development for
technology transfer activities at the Department. The
Technology Transfer Coordinator shall coordinate the ac-
tivities of the Technology Transfer Working Group, and
shall oversee the expenditure of funds allocated to the
Technology Transfer Working Group, and shall coordinate
with each technology partnership ombudsman appointed
under section 11 of the Technology Transfer Commer-
cialization Act of 2000 (42 U.S.C. 7261c).
(b) TECHNOLOGY TRANSFER WORKING GROUP.—
The Secretary shall establish a Technology Transfer
Working Group, which shall consist of representatives of
the National Laboratories and single-purpose research fa-
cilities, to—
(1) coordinate technology transfer activities oc-
curring at National Laboratories and single-purpose
research facilities;
(2) exchange information about technology
transfer practices, including alternative approaches
446
to resolution of disputes involving intellectual prop-
erty rights and other technology transfer matters;
and
(3) develop and disseminate to the public and
prospective technology partners information about
opportunities and procedures for technology transfer
with the Department, including those related to al-
ternative approaches to resolution of disputes involv-
ing intellectual property rights and other technology
transfer matters.
(c) TECHNOLOGY
TRANSFER
RESPONSIBILITY.—
Nothing in this section shall affect the technology transfer
responsibilities of Federal employees under the Stevenson-
Wydler Technology Innovation Act of 1980.
SEC. 21806. SMALL BUSINESS ADVOCACY AND ASSISTANCE.
(a) SMALL BUSINESS ADVOCATE.—The Secretary
shall require the Director of each National Laboratory,
and may require the Director of a single-purpose research
facility, to designate a small business advocate to—
(1) increase the participation of small business
concerns, including socially and economically dis-
advantaged small business concerns, in procurement,
collaborative research, technology licensing, and
technology transfer activities conducted by the Na-
tional Laboratory or single-purpose research facility;
447
(2) report to the Director of the National Lab-
oratory or single-purpose research facility on the ac-
tual participation of small business concerns in pro-
curement and collaborative research along with rec-
ommendations, if appropriate, on how to improve
participation;
(3) make available to small business concerns
training, mentoring, and clear, up-to-date informa-
tion on how to participate in the procurement and
collaborative research, including how to submit effec-
tive proposals, and information related to alternative
approaches to resolution of disputes involving intel-
lectual property rights and other technology transfer
matters;
(4) increase the awareness inside the National
Laboratory or single-purpose research facility of the
capabilities and opportunities presented by small
business concerns; and
(5) establish guidelines for the program under
subsection (b) and report on the effectiveness of
such program to the Director of the National Lab-
oratory or single-purpose research facility.
(b) ESTABLISHMENT OF SMALL BUSINESS ASSIST-
ANCE PROGRAM.—The Secretary shall require the Direc-
tor of each National Laboratory, and may require the Di-
448
rector of a single-purpose research facility, to establish a
program to provide small business concerns—
(1) assistance directed at making them more ef-
fective and efficient subcontractors or suppliers to
the National Laboratory or single-purpose research
facility; or
(2) general technical assistance, the cost of
which shall not exceed $10,000 per instance of as-
sistance, to improve the small business concern’s
products or services.
(c) USE OF FUNDS.—None of the funds expended
under subsection (b) may be used for direct grants to the
small business concerns.
(d) DEFINITIONS.—In this section:
(1) SMALL
BUSINESS
CONCERN.—The term
‘‘small business concern’’ has the meaning given
such term in section 3 of the Small Business Act
(15 U.S.C. 632).
(2) SOCIALLY AND ECONOMICALLY DISADVAN-
TAGED SMALL BUSINESS CONCERNS.—The term ‘‘so-
cially and economically disadvantaged small business
concerns’’ has the meaning given such term in sec-
tion 8(a)(4) of the Small Business Act (15 U.S.C.
637(a)(4)).
449
SEC. 21807. MOBILITY OF SCIENTIFIC AND TECHNICAL PER-
SONNEL.
Not later than 2 years after the date of enactment
of this section, the Secretary shall transmit a report to
the Congress identifying any policies or procedures of a
contractor operating a National Laboratory or single-pur-
pose research facility that create disincentives to the tem-
porary transfer of scientific and technical personnel
among the contractor-operated National Laboratories or
contractor-operated single-purpose research facilities.
SEC. 21808. NATIONAL ACADEMY OF SCIENCES REPORT.
Within 90 days after the date of enactment of this
Act, the Secretary shall enter into an arrangement with
the National Academy of Sciences for the Academy to—
(1) conduct studies on—
(A) the obstacles to accelerating the com-
mercial application of energy technology; and
(B) the adequacy of Department policies
and procedures for, and oversight of, technology
transfer-related disputes between contractors of
the Department and the private sector; and
(2) report to the Congress on recommendations
developed as a result of the studies.
SEC. 21809. OUTREACH.
The Secretary shall ensure that each program au-
thorized by this title includes an outreach component to
450
provide information, as appropriate, to manufacturers,
consumers, engineers, architects, builders, energy service
companies, institutions of higher education, facility plan-
ners and managers, State and local governments, and
other entities.
SEC. 21810. LIMITS ON USE OF FUNDS.
(a) COMPETITIVE
PROCEDURE
REQUIREMENT.—
None of the funds authorized to be appropriated to the
Secretary by this title may be used to award a manage-
ment and operating contract for a nonmilitary energy lab-
oratory of the Department unless such contract is com-
petitively awarded or the Secretary grants, on a case-by-
case basis, a waiver to allow for such a deviation. The Sec-
retary may not delegate the authority to grant such a
waiver.
(b) CONGRESSIONAL NOTICE.—At least 2 months be-
fore a contract award for which the Secretary intends to
grant such a waiver, the Secretary shall submit to the
Congress a report notifying the Congress of the waiver
and setting forth the reasons for the waiver.
SEC. 21811. REPROGRAMMING.
(a) DISTRIBUTION REPORT.—Not later than 60 days
after the date of the enactment of an Act appropriating
amounts authorized under this title, the Secretary shall
transmit to the appropriate authorizing committees of the