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drilling successful wells from 20 percent to 40
percent by 2006;
(B) reducing the cost of drilling by 2008 to
an average cost of $150 per foot; and
(C) developing enhanced geothermal systems
technology with the potential to double the use-
able geothermal resource base.
(6) BIOFUELS.—The goal of the biofuels program
shall be to develop, in partnership with industry—
(A) advanced biochemical and thermo-
chemical conversion technologies capable of mak-
ing liquid and gaseous fuels from cellulosic feed-
stocks that are price-competitive with gasoline or
diesel in either internal combustion engines or
fuel cell vehicles by 2010; and
(B) advanced biotechnology processes capa-
ble of making biofuels, biobased polymers, and
chemicals, with particular emphasis on the de-
velopment of biorefineries that use enzyme based
processing systems.
For purposes of this paragraph, the term ‘‘cellulosic
feedstock’’ means any portion of a food crop not nor-
mally used in food production or any nonfood crop
grown for the purpose of producing biomass feedstock.
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(7) HYDROGEN-BASED
ENERGY
SYSTEMS.—The
goals of the hydrogen program shall be to support re-
search and development on technologies for produc-
tion, storage, and use of hydrogen, including fuel cells
and, specifically, fuel-cell vehicle development activi-
ties under section 1211.
(8) HYDROPOWER.—The goal of the hydropower
program shall be to develop, in partnership with in-
dustry, a new generation of turbine technologies that
are less damaging to fish and aquatic ecosystems.
(9) ELECTRIC
ENERGY
SYSTEMS
AND
STOR-
AGE.—The goals of the electric energy and storage
program shall be to develop, in partnership with
industry—
(A) generators and transmission, distribu-
tion, and storage systems that combine high ca-
pacity with high efficiency;
(B) technologies to interconnect distributed
energy resources with electric power systems,
comply with any national interconnection stand-
ards, have a minimum 10-year useful life;
(C) advanced technologies to increase the
average efficiency of electric transmission facili-
ties in rural and remote areas, giving priority
for demonstrations to advanced transmission
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technologies that are being or have been field
tested;
(D) the use of new transmission tech-
nologies, including flexible alternating current
transmission systems, composite conductor mate-
rials, advanced protection devices, controllers,
and other cost-effective methods and technologies;
(E) the use of superconducting materials in
power delivery equipment such as transmission
and distribution cables, transformers, and gen-
erators;
(F) energy management technologies for en-
terprises with aggregated loads and distributed
generation, such as power parks;
(G) economic and system models to measure
the costs and benefits of improved system per-
formance;
(H) hybrid distributed energy systems to
optimize two or more distributed or on-site gen-
eration technologies; and
(I) real-time transmission and distribution
system control technologies that provide for con-
tinual exchange of information between genera-
tion, transmission, distribution, and end-user fa-
cilities.
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(c) SPECIAL PROJECTS.—In carrying out this section,
the Secretary shall demonstrate—
(1) the use of advanced wind power technology,
biomass, geothermal energy systems, and other renew-
able energy technologies to assist in delivering elec-
tricity to rural and remote locations;
(2) the combined use of wind power and coal
gasification technologies; and
(3) the use of high temperature superconducting
technology in projects to demonstrate the development
of superconductors that enhance the reliability, oper-
ational flexibility, or power-carrying capability of
electric transmission systems or increase the electrical
or operational efficiency of electric energy generation,
transmission, distribution and storage systems.
(d) FINANCIAL ASSISTANCE TO RURAL AREAS.—In
carrying out special projects under subsection (c), the Sec-
retary may provide financial assistance to rural electric co-
operatives and other rural entities.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary for carrying
out research, development, demonstration, and technology
deployment activities under this subtitle—
(1) $500,000,000 for fiscal year 2003;
(2) $595,000,000 for fiscal year 2004;
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(3) $683,000,000 for fiscal year 2005; and
(4) $733,000,000 for fiscal year 2006, of which
$100,000,000 may be allocated to meet the goals of
subsection (b)(1).
SEC. 1222. BIOENERGY PROGRAMS.
(a) PROGRAM DIRECTION.—The Secretary shall carry
out research, development, demonstration, and technology
development activities related to bioenergy, including pro-
grams under paragraphs (4) and (6) of section 1221(b).
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) 
BIOPOWER
ENERGY
SYSTEMS.—From
amounts authorized under section 1221(e), there are
authorized to be appropriated to the Secretary for
biopower energy systems—
(A) $60,300,000 for fiscal year 2003;
(B) $69,300,000 for fiscal year 2004;
(C) $79,600,000 for fiscal year 2005; and
(D) $86,250,000 for fiscal year 2006.
(2) 
BIOFUELS
ENERGY
SYSTEMS.—From
amounts authorized under section 1221(e), there are
authorized to be appropriated to the Secretary for
biofuels energy systems—
(A) $57,500,000 for fiscal year 2003;
(B) $66,125,000 for fiscal year 2004;
(C) $76,000,000 for fiscal year 2005; and
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(D) $81,400,000 for fiscal year 2006.
(3) INTEGRATED BIOENERGY RESEARCH AND DE-
VELOPMENT.—The Secretary may use funds author-
ized under paragraph (1) or (2) for programs,
projects, or activities that integrate applications for
both biopower and biofuels, including cross-cutting re-
search and development in feedstocks and economic
analysis.
SEC. 1223. HYDROGEN RESEARCH AND DEVELOPMENT.
(a) SHORT TITLE.—This section may be cited as the
‘‘Hydrogen Future Act of 2002’’.
(b) PURPOSES.—Section 102(b) of the Spark M. Mat-
sunaga Hydrogen Research, Development, and Demonstra-
tion Act of 1990 (42 U.S.C. 12401(b)) is amended by strik-
ing paragraphs (2) and (3) and inserting the following:
‘‘(2) to direct the Secretary to develop a program
of technology assessment, information transfer, and
education in which Federal agencies, members of the
transportation, energy, and other industries, and
other entities may participate;
‘‘(3) to develop methods of hydrogen production
that minimize production of greenhouse gases, includ-
ing developing—
‘‘(A) efficient production from nonrenewable
resources; and
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‘‘(B) cost-effective production from renew-
able resources such as biomass, geothermal, wind,
and solar energy; and
‘‘(4) to foster the use of hydrogen as a major en-
ergy source, including developing the use of hydrogen
in—
‘‘(A) isolated villages, islands, and commu-
nities in which other energy sources are not
available or are very expensive; and
‘‘(B) foreign economic development, to avoid
environmental damage from increased fossil fuel
use.’’.
(c) REPORT TO CONGRESS.—Section 103 of the Spark
M. Matsunaga Hydrogen Research, Development, and Dem-
onstration Act of 1990 (42 U.S.C. 12402) is amended—
(1) in subsection (a), by striking ‘‘January 1,
1999,’’ and inserting ‘‘1 year after the date of enact-
ment of the Hydrogen Future Act of 2002, and bien-
nially thereafter,’’;
(2) in subsection (b), by striking paragraphs (1)
and (2) and inserting the following:
‘‘(1) an analysis of hydrogen-related activities
throughout the United States Government to identify
productive areas for increased intragovernmental col-
laboration;
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‘‘(2) recommendations of the Hydrogen Technical
Advisory Panel established by section 108 for any im-
provements in the program that are needed, including
recommendations for additional legislation; and
‘‘(3) to the extent practicable, an analysis of
State and local hydrogen-related activities.’’; and
(3) by adding at the end the following:
‘‘(c) COORDINATION PLAN.—The report under sub-
section (a) shall be based on a comprehensive coordination
plan for hydrogen energy prepared by the Secretary in con-
sultation with other Federal agencies.’’.
(d) HYDROGEN RESEARCH AND DEVELOPMENT.—Sec-
tion 104 of the Spark M. Matsunaga Hydrogen Research,
Development, and Demonstration Act of 1990 (42 U.S.C.
12403) is amended—
(1) in subsection (b)(1), by striking ‘‘market-
place;’’ and inserting ‘‘marketplace, including foreign
markets, particularly where an energy infrastructure
is not well developed;’’;
(2) in subsection (e), by striking ‘‘this chapter’’
and inserting ‘‘this Act’’;
(3) by striking subsection (g) and inserting the
following:
‘‘(g) COST SHARING.—
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‘‘(1) INABILITY
TO
FUND
ENTIRE
COST.—The
Secretary shall not consider a proposal submitted by
a person from industry unless the proposal contains
a certification that—
‘‘(A) reasonable efforts to obtain non-Fed-
eral funding in the amount necessary to pay 100
percent of the cost of the project have been made;
and
‘‘(B) non-Federal funding in that amount
could not reasonably be obtained.
‘‘(2) NON-FEDERAL SHARE.—
‘‘(A) IN GENERAL.—The Secretary shall re-
quire a commitment from non-Federal sources of
at least 25 percent of the cost of the project.
‘‘(B) REDUCTION
OR
ELIMINATION.—The
Secretary may reduce or eliminate the cost-shar-
ing requirement under subparagraph (A) for the
proposed research and development project, in-
cluding for technical analyses, economic anal-
yses, outreach activities, and educational pro-
grams, if the Secretary determines that reduction
or elimination is necessary to achieve the objec-
tives of this Act.’’;
(4) in subsection (i), by striking ‘‘this chapter’’
and inserting ‘‘this Act’’.
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(e) DEMONSTRATIONS.—Section 105 of the Spark M.
Matsunaga Hydrogen Research, Development, and Dem-
onstration Act of 1990 (42 U.S.C. 12404) is amended by
striking subsection (c) and inserting the following:
‘‘(c) NON-FEDERAL SHARE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall require a commitment
from non-Federal sources of at least 50 percent of the
costs directly relating to a demonstration project
under this section.
‘‘(2) REDUCTION.—The Secretary may reduce
the non-Federal requirement under paragraph (1) if
the Secretary determines that the reduction is appro-
priate considering the technological risks involved in
the project and is necessary to meet the objectives of
this Act.’’.
(f) TECHNOLOGY TRANSFER.—Section 106 of the
Spark M. Matsunaga Hydrogen Research, Development,
and Demonstration Act of 1990 (42 U.S.C. 12405) is
amended—
(1) in subsection (a)—
(A) in the first sentence—
(i) by striking ‘‘The Secretary shall
conduct a program designed to accelerate
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wider application’’ and inserting the fol-
lowing:
‘‘(1) IN GENERAL.—The Secretary shall conduct
a program designed to—
‘‘(A) accelerate wider application’’; and
(ii) by striking ‘‘private sector’’ and
inserting ‘‘private sector; and
‘‘(B) accelerate wider application of hydro-
gen technologies in foreign countries to increase
the global market for the technologies and foster
global economic development without harmful en-
vironmental effects.’’; and
(B) in the second sentence, by striking ‘‘The
Secretary’’ and inserting the following:
‘‘(2) ADVICE AND ASSISTANCE.—The Secretary’’;
and
(2) in subsection (b)—
(A) in paragraph (2), by redesignating sub-
paragraphs (A) through (D) as clauses (i)
through (iv), respectively, and indenting appro-
priately;
(B) by redesignating paragraphs (1) and
(2) as subparagraphs (A) and (B), respectively,
and indenting appropriately;
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(C) by striking ‘‘The Secretary, in’’ and in-
serting the following:
‘‘(1) IN GENERAL.—The Secretary, in’’;
(D) by striking ‘‘The information’’ and in-
serting the following:
‘‘(2) ACTIVITIES.—The information’’; and
(E) in paragraph (1) (as designated by sub-
paragraph (C))—
(i) in subparagraph (A) (as redesig-
nated by subparagraph (B)), by striking
‘‘an inventory’’ and inserting ‘‘an update of
the inventory’’; and
(ii) in subparagraph (B) (as redesig-
nated by subparagraph (B)), by striking
‘‘develop’’ and all that follows through ‘‘to
improve’’ and inserting ‘‘develop with the
National Aeronautics and Space Adminis-
tration, the Department of Energy, other
Federal agencies as appropriate, and indus-
try, an information exchange program to
improve’’.
(g) TECHNICAL PANEL REVIEW.—
(1) IN GENERAL.—Section 108 of the Spark M.
Matsunaga Hydrogen Research, Development, and
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Demonstration Act of 1990 (42 U.S.C. 12407) is
amended—
(A) in subsection (b)—
(i) by striking ‘‘(b) MEMBERSHIP.—
The technical panel shall be appointed’’ and
inserting the following:
‘‘(b) MEMBERSHIP.—
‘‘(1) IN GENERAL.—The technical panel shall be
comprised of not fewer than 9 nor more than 15
members appointed’’;
(ii) by striking the second sentence and
inserting the following:
‘‘(2) TERMS.—
‘‘(A) IN GENERAL.—The term of a member
of the technical panel shall be not more than 3
years.
‘‘(B) STAGGERED
TERMS.—The Secretary
may appoint members of the technical panel in
a manner that allows the terms of the members
serving at any time to expire at spaced intervals
so as to ensure continuity in the functioning of
the technical panel.
‘‘(C) REAPPOINTMENT.—A member of the
technical panel whose term expires may be re-
appointed.’’; and
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(iii) by striking ‘‘The technical panel
shall have a chairman,’’ and inserting the
following:
‘‘(3) CHAIRPERSON.—The technical panel shall
have a chairperson,’’; and
(B) in subsection (d)—
(i) in the matter preceding paragraph
(1), by striking ‘‘the following items’’;
(ii) in paragraph (1), by striking
‘‘and’’ at the end;
(iii) in paragraph (2), by striking the
period at the end and inserting ‘‘; and’’;
and
(iv) by adding at the end the following:
‘‘(3) the plan developed by the interagency task
force under section 202(b) of the Hydrogen Future Act
of 1996.’’.
(2) NEW APPOINTMENTS.—Not later than 180
days after the date of enactment of this Act, the
Secretary—
(A) shall review the membership composi-
tion of the Hydrogen Technical Advisory Panel;
and
(B) may appoint new members consistent
with the amendments made by subsection (a).
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(h) AUTHORIZATION
OF APPROPRIATIONS.—Section
109 of the Spark M. Matsunaga Hydrogen Research, Devel-
opment, and Demonstration Act of 1990 (42 U.S.C. 12408)
is amended—
(1) in paragraph (8), by striking ‘‘and’’;
(2) in paragraph (9), by striking the period and
inserting a semicolon; and
(3) by adding at the end the following:
‘‘(10) $65,000,000 for fiscal year 2003;
‘‘(11) $70,000,000 for fiscal year 2004;
‘‘(12) $75,000,000 for fiscal year 2005; and
‘‘(13) $80,000,000 for fiscal year 2006.’’.
(i) FUEL CELLS.—
(1) INTEGRATION OF FUEL CELLS WITH HYDRO-
GEN PRODUCTION SYSTEMS.—Section 201 of the Hy-
drogen Future Act of 1996 is amended—
(A) in subsection (a) by striking ‘‘(a) Not
later than 180 days after the date of enactment
of this section, and subject’’ and inserting ‘‘(a)
IN GENERAL.—Subject’’;
(B) by striking ‘‘with—’’ and all that fol-
lows and inserting ‘‘into Federal, State, and
local government facilities for stationary and
transportation applications.’’;
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(C) in subsection (b), by striking ‘‘gas is’’
and inserting ‘‘basis’’;
(D) in subsection (c)(2), by striking ‘‘sys-
tems described in subsections (a)(1) and (a)(2)’’
and inserting ‘‘projects proposed’’; and
(E) by striking subsection (d) and inserting
the following:
‘‘(d) NON-FEDERAL SHARE.—
‘‘(1) IN GENERAL.—Except as provided in para-
graph (2), the Secretary shall require a commitment
from non-Federal sources of at least 50 percent of the
costs directly relating to a demonstration project
under this section.
‘‘(2) REDUCTION.—The Secretary may reduce
the non-Federal requirement under paragraph (1) if
the Secretary determines that the reduction is appro-
priate considering the technological risks involved in
the project and is necessary to meet the objectives of
this Act.’’.
(2) COOPERATIVE
AND
COST-SHARING
AGREE-
MENTS; INTEGRATION OF TECHNICAL INFORMATION.—
Title II of the Hydrogen Future Act of 1996 (42
U.S.C. 12403 note; Public Law 104–271) is amended
by striking section 202 and inserting the following:
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‘‘SEC. 202. INTERAGENCY TASK FORCE.
‘‘(a) ESTABLISHMENT.—Not later than 120 days after
the date of enactment of this section, the Secretary shall
establish an interagency task force led by a Deputy Assist-
ant Secretary of the Department of Energy and comprised
of representatives of—
‘‘(1) the Office of Science and Technology Policy;
‘‘(2) the Department of Transportation;
‘‘(3) the Department of Defense;
‘‘(4) the Department of Commerce (including the
National Institute for Standards and Technology);
‘‘(5) the Environmental Protection Agency;
‘‘(6) the National Aeronautics and Space Ad-
ministration; and
‘‘(7) other agencies as appropriate.
‘‘(b) DUTIES.—
‘‘(1) IN GENERAL.—The task force shall develop
a plan for carrying out this title.
‘‘(2) FOCUS OF PLAN.—The plan shall focus on
development and demonstration of integrated systems
and components for—
‘‘(A) hydrogen production, storage, and use
in Federal, State, and local government build-
ings and vehicles;
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‘‘(B) hydrogen-based infrastructure for buses
and other fleet transportation systems that in-
clude zero-emission vehicles; and
‘‘(C) hydrogen-based distributed power gen-
eration, including the generation of combined
heat, power, and hydrogen.
‘‘SEC. 203. COOPERATIVE AND COST-SHARING AGREE-
MENTS.
‘‘The Secretary shall enter into cooperative and cost-
sharing agreements with Federal, State, and local agencies
for participation by the agencies in demonstrations at fa-
cilities administered by the agencies, with the aim of inte-
grating high efficiency hydrogen systems using fuel cells
into the facilities to provide immediate benefits and pro-
mote a smooth transition to hydrogen as an energy source.
‘‘SEC. 204. INTEGRATION AND DISSEMINATION OF TECH-
NICAL INFORMATION.
‘‘The Secretary shall—
‘‘(1) integrate all the technical information that
becomes available as a result of development and dem-
onstration projects under this title;
‘‘(2) make the information available to all Fed-
eral and State agencies for dissemination to all inter-
ested persons; and
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‘‘(3) foster the exchange of generic, nonpropri-
etary information and technology developed under
this title among industry, academia, and Federal,
State, and local governments, to help the United
States economy attain the economic benefits of the in-
formation and technology.
‘‘SEC. 205. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated, for activities
under this title—
‘‘(1) $25,000,000 for fiscal year 2003;
‘‘(2) $30,000,000 for fiscal year 2004;
‘‘(3) $35,000,000 for fiscal year 2005; and
‘‘(4) $40,000,000 for fiscal year 2006.’’.
Subtitle C—Fossil Energy
SEC. 1231. ENHANCED FOSSIL ENERGY RESEARCH AND DE-
VELOPMENT.
(a) PROGRAM DIRECTION.—The Secretary shall con-
duct a balanced energy research, development, demonstra-
tion, and technology deployment program to enhance fossil
energy.
(b) PROGRAM GOALS.—
(1) CORE
FOSSIL
RESEARCH
AND
DEVELOP-
MENT.—The goals of the core fossil research and devel-
opment program shall be to reduce emissions from fos-
sil fuel use by developing technologies, including
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precombustion technologies, by 2015 with the capa-
bility of realizing—
(A) electricity generating efficiencies of 60
percent for coal and 75 percent for natural gas;
(B) combined heat and power thermal effi-
ciencies of more than 85 percent;
(C) fuels utilization efficiency of 75 percent
for the production of liquid transportation fuels
from coal;
(D) near zero emissions of mercury and of
emissions that form fine particles, smog, and
acid rain;
(E) reduction of carbon dioxide emissions
by at least 40 percent through efficiency im-
provements and 100 percent with sequestration;
and
(F) improved reliability, efficiency, reduc-
tions of air pollutant emissions, or reductions in
solid waste disposal requirements.
(2) OFFSHORE
OIL
AND
NATURAL
GAS
RE-
SOURCES.—The goal of the offshore oil and natural
gas resources program shall be to develop technologies
to—
(A) extract methane hydrates in coastal wa-
ters of the United States, and
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(B) develop natural gas and oil reserves in
the ultra-deepwater of the Central and Western
Gulf of Mexico.
(3) ONSHORE
OIL
AND
NATURAL
GAS
RE-
SOURCES.—The goal of the onshore oil and natural
gas resources program shall be to advance the science
and technology available to domestic onshore petro-
leum producers, particularly independent operators,
through—
(A) advances in technology for exploration
and production of domestic petroleum resources,
particularly those not accessible with current
technology;
(B) improvement in the ability to extract
hydrocarbons from known reservoirs and classes
of reservoirs; and
(C) development of technologies and prac-
tices that reduce the threat to the environment
from petroleum exploration and production and
decrease the cost of effective environmental com-
pliance.
(4) TRANSPORTATION FUELS.—The goals of the
transportation fuels program shall be to increase the
price elasticity of oil supply and demand by focusing
research on—
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(A) reducing the cost of producing transpor-
tation fuels from coal and natural gas; and
(B) indirect liquefaction of coal and bio-
mass.
(c) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary for carrying out research,
development, demonstration, and technology deploy-
ment activities under this section—
(A) $485,000,000 for fiscal year 2003;
(B) $508,000,000 for fiscal year 2004;
(C) $532,000,000 for fiscal year 2005; and
(D) $558,000,000 for fiscal year 2006.
(2) LIMITS
ON
USE
OF
FUNDS.—None of the
funds authorized in paragraph (1) may be used for—
(A) fossil energy environmental restoration;
(B) import/export authorization;
(C) program direction; or
(D) general plant projects.
(3) COAL-BASED
PROJECTS.—The coal-based
projects funded under this section shall be consistent
with the goals in subsection (b). The program shall
emphasize carbon capture and sequestration tech-
nologies and gasification technologies, including gas-
ification combined cycle, gasification fuel cells, gasifi-
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cation co-production, hybrid gasification/combustion,
or other technology with the potential to address the
goals in subparagraphs (D) or (E) of subsection
(b)(1).
SEC. 1232. POWER PLANT IMPROVEMENT INITIATIVE.
(a) PROGRAM DIRECTION.—The Secretary shall con-
duct a balanced energy research, development, demonstra-
tion, and technology deployment program to demonstrate
commercial applications of advanced lignite and coal-based
technologies applicable to new or existing power plants (in-
cluding co-production plants) that advance the efficiency,
environmental performance, and cost-competitiveness sub-
stantially beyond technologies that are in operation or have
been demonstrated by the date of enactment of this subtitle.
(b) TECHNICAL MILESTONES.—
(1) IN GENERAL.—The Secretary shall set tech-
nical milestones specifying efficiency and emissions
levels that projects shall be designed to achieve. The
milestones shall become more restrictive over the life
of the program.
(2) 2010 EFFICIENCY MILESTONES.—The mile-
stones shall be designed to achieve by 2010 interim
thermal efficiency of—
(A) forty-five percent for coal of more than
9,000 Btu;
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(B) forty-four percent for coal of 7,000 to
9,000 Btu; and
(C) forty-two percent for coal of less than
7,000 Btu.
(3) 2020 EFFICIENCY MILESTONES.—The mile-
stones shall be designed to achieve by 2020 thermal ef-
ficiency of—
(A) sixty percent for coal of more than
9,000 Btu;
(B) fifty-nine percent for coal of 7,000 to
9,000 Btu; and
(C) fifty-seven percent for coal of less than
7,000 Btu.
(4) EMISSIONS
MILESTONES.—The milestones
shall include near zero emissions of mercury and
greenhouse gases and of emissions that form fine par-
ticles, smog, and acid rain.
(5) REGIONAL AND QUALITY DIFFERENCES.—The
Secretary may consider regional and quality dif-
ferences in developing the efficiency milestones.
(c) PROJECT CRITERIA.—The demonstration activities
proposed to be conducted at a new or existing coal-based
electric generation unit having a nameplate rating of not
less than 100 megawatts, excluding a co-production plant,
shall include at least one of the following—
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(B) in the case of a new unit, achieve the
efficiency milestones set for in subsection (b)
compared to the efficiency of a typical unit as
operated on the date of enactment of this subtitle,
before any retrofit, repowering, replacement, or
installation.
(d) STUDY.—The Secretary, in consultation with the
Administrator of the Environmental Protection Agency, the
Secretary of the Interior, and interested entities (including
coal producers, industries using coal, organizations to pro-
mote coal or advanced coal technologies, environmental or-
ganizations, and organizations representing workers), shall
conduct an assessment that identifies performance criteria
that would be necessary for coal-based technologies to meet,
to enable future reliance on coal in an environmentally sus-
tainable manner for electricity generation, use as a chem-
ical feedstock, and use as a transportation fuel.
(e) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to the Secretary for carrying out activities
under this section $200,000,000 for each of fiscal
years 2003 through 2011.
(2) LIMITATION
ON
FUNDING
OF
PROJECTS.—
Eighty percent of the funding under this section shall
be limited to—
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(A) carbon capture and sequestration tech-
nologies;
(B) gasification technologies, including gas-
ification combined cycle, gasification fuel cells,
gasification co-production, or hybrid gasifi-
cation/combustion; or
(C) other technology either by itself or in
conjunction with other technologies that has the
potential to achieve near zero emissions.
SEC. 1233. RESEARCH AND DEVELOPMENT FOR ADVANCED
SAFE AND EFFICIENT COAL MINING TECH-
NOLOGIES.
(a) ESTABLISHMENT.—The Secretary of Energy shall
establish a cooperative research partnership involving ap-
propriate Federal agencies, coal producers, including asso-
ciations, equipment manufacturers, universities with min-
ing engineering departments, and other relevant entities
to—
(1) develop mining research 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;
(2) establish a process for conducting joint in-
dustry-Government research and development; and
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(3) expand mining research capabilities at insti-
tutions of higher education.
(b) AUTHORIZATION OF APPROPRIATIONS.—
(1) IN GENERAL.—There are authorized to be ap-
propriated to carry out activities under this section,
$12,000,000 in fiscal year 2003 and $15,000,000 in
fiscal year 2004.
(2) LIMIT ON USE OF FUNDS.—Not less than 20
percent of any funds appropriated in a given fiscal
year under this subsection shall be dedicated to re-
search carried out at institutions of higher education.
SEC. 1234. ULTRA-DEEPWATER AND UNCONVENTIONAL RE-
SOURCE EXPLORATION AND PRODUCTION
TECHNOLOGIES.
(a) DEFINITIONS.—In this section:
(1) ADVISORY COMMITTEE.—The term ‘‘Advisory
Committee’’ means the Ultra-Deepwater and Uncon-
ventional Resource Technology Advisory Committee
established under subsection (c).
(2) AWARD.—The term ‘‘award’’ means a cooper-
ative agreement, contract, award or other types of
agreement as appropriate.
(3) DEEPWATER.—The term ‘‘deepwater’’ means
a water depth that is greater than 200 but less than
1,500 meters.
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(4) ELIGIBLE AWARD RECIPIENT.—The term ‘‘el-
igible award recipient’’ includes—
(A) a research institution;
(B) an institution of higher education;
(C) a corporation; and
(D) a managing consortium formed among
entities described in subparagraphs (A) through
(C).
(5) INSTITUTION OF HIGHER EDUCATION.—The
term ‘‘institution of higher education’’ has the mean-
ing given the term in section 101 of the Higher Edu-
cation Act of 1965 (20 U.S.C. 1001).
(6) MANAGING CONSORTIUM.—The term ‘‘man-
aging consortium’’ means an entity that—
(A) exists as of the date of enactment of this
section;
(B)(i) is an organization described in sec-
tion 501(c)(3) of the Internal Revenue Code of
1986; and
(ii) is exempt from taxation under section
501(a) of that Code;
(C) is experienced in planning and man-
aging programs in natural gas or other petro-
leum exploration and production research, devel-
opment, and demonstration; and
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(D) has demonstrated capabilities and expe-
rience in representing the views and priorities of
industry, institutions of higher education and
other research institutions in formulating com-
prehensive research and development plans and
programs.
(7) PROGRAM.—The term ‘‘program’’ means the
program of research, development, and demonstration
established under subsection (b)(1)(A).
(8) ULTRA-DEEPWATER.—The term ‘‘ultra-deep-
water’’ means a water depth that is equal to or great-
er than 1,500 meters.
(9) ULTRA-DEEPWATER
ARCHITECTURE.—The
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies to explore and produce natural
gas or petroleum products located at ultra-deepwater
depths.
(10) ULTRA-DEEPWATER RESOURCE.—The term
‘‘ultra-deepwater resource’’ means natural gas or any
other petroleum resource (including methane hydrate)
located in an ultra-deepwater area.
(11) UNCONVENTIONAL
RESOURCE.—The term
‘‘unconventional resource’’ means natural gas or any
other petroleum resource located in a formation on
physically or economically inaccessible land currently
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available for lease for purposes of natural gas or other
petroleum exploration or production.
(b) ULTRA-DEEPWATER AND UNCONVENTIONAL EX-
PLORATION AND PRODUCTION PROGRAM.—
(1) ESTABLISHMENT.—
(A) IN GENERAL.—The Secretary shall es-
tablish a program of research into, and develop-
ment and demonstration of, ultra-deepwater re-
source and unconventional resource exploration
and production technologies.
(B) 
LOCATION; 
IMPLEMENTATION.—The
program under this subsection shall be carried
out—
(i) in areas on the outer Continental
Shelf that, as of the date of enactment of
this section, are available for leasing; and
(ii) on unconventional resources.
(2) COMPONENTS.—The program shall include
one or more programs for long-term research into—
(A) new deepwater ultra-deepwater resource
and unconventional resource exploration and
production technologies; or
(B) environmental mitigation technologies
for production of ultra-deepwater resource and
unconventional resource.
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(ii) at least three members shall have
extensive knowledge of unconventional re-
source exploration and production tech-
nologies.
(3) DUTIES.—The advisory committee shall ad-
vise the Secretary in the implementation of this sec-
tion.
(4) COMPENSATION.—A member of the advisory
committee shall serve without compensation but shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with applicable provisions
under subchapter I of chapter 57 of title 5, United
States Code.
(d) AWARDS.—
(1) TYPES OF AWARDS.—
(A) ULTRA-DEEPWATER RESOURCES.—
(i) IN GENERAL.—The Secretary shall
make awards for research into, and develop-
ment and demonstration of, ultra-deepwater
resource 
exploration 
and 
production
technologies—
(I) to maximize the value of the
ultra-deepwater resources of the United
States;
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(II) to increase the supply of
ultra-deepwater resources by lowering
the cost and improving the efficiency of
exploration and production of such re-
sources; and
(III) to improve safety and mini-
mize negative environmental impacts
of that exploration and production.
(ii) 
ULTRA-DEEPWATER
ARCHITEC-
TURE.—In furtherance of the purposes de-
scribed in clause (i), the Secretary shall,
where appropriate, solicit proposals from a
managing consortium to develop and dem-
onstrate next-generation architecture for
ultra-deepwater resource production.
(B) UNCONVENTIONAL
RESOURCES.—The
Secretary shall make awards—
(i) to carry out research into, and de-
velopment and demonstration of, tech-
nologies to maximize the value of unconven-
tional resources; and
(ii) 
to 
develop 
technologies 
to
simultaneously—
(I) increase the supply of uncon-
ventional resources by lowering the cost
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and improving the efficiency of explo-
ration and production of unconven-
tional resources; and
(II) improve safety and minimize
negative environmental impacts of that
exploration and production.
(2) CONDITIONS.—An award made under this
subsection shall be subject to the following conditions:
(A) MULTIPLE ENTITIES.—If an award re-
cipient is composed of more than one eligible or-
ganization, the recipient shall provide a signed
contract, agreed to by all eligible organizations
comprising the award recipient, that defines, in
a manner that is consistent with all applicable
law in effect as of the date of the contract, all
rights to intellectual property for—
(i) technology in existence as of that
date; and
(ii) future inventions conceived and de-
veloped using funds provided under the
award.
(B) COMPONENTS
OF
APPLICATION.—An
application for an award for a demonstration
project shall describe with specificity any in-
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tended commercial applications of the technology
to be demonstrated.
(C) COST SHARING.—Non-Federal cost shar-
ing shall be in accordance with section 1403.
(e) PLAN AND FUNDING.—
(1) IN GENERAL.—The Secretary, and where ap-
propriate, a managing consortium under subsection
(d)(1)(A)(ii), shall formulate annual operating and
performance objectives, develop multiyear technology
roadmaps, and establish research and development
priorities for the funding of activities under this sec-
tion which will serve as guidelines for making awards
including cost-matching objectives.
(2) INDUSTRY INPUT.—In carrying out this pro-
gram, the Secretary shall promote maximum industry
input through the use of managing consortia or other
organizations in planning and executing the research
areas and conducting workshops or reviews to ensure
that this program focuses on industry problems and
needs.
(f) AUDITING.—
(1) IN GENERAL.—The Secretary shall retain an
independent, commercial auditor to determine the ex-
tent to which funds authorized by this section, pro-
vided through a managing consortium, are expended
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in a manner consistent with the purposes of this sec-
tion.
(2) REPORTS.—The auditor retained under
paragraph (1) shall submit to the Secretary, and the
Secretary shall transmit to the appropriate congres-
sional committees, an annual report that describes—
(A) the findings of the auditor under para-
graph (1); and
(B) a plan under which the Secretary may
remedy any deficiencies identified by the audi-
tor.
(g) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums
as may be necessary to carry out this section.
(h) TERMINATION OF AUTHORITY.—The authority pro-
vided by this section shall terminate on September 30, 2009.
(i) SAVINGS PROVISION.—Nothing in this section is
intended to displace, duplicate or diminish any previously
authorized research activities of the Department of Energy.
SEC. 1235. RESEARCH AND DEVELOPMENT FOR NEW NAT-
URAL 
GAS 
TRANSPORTATION 
TECH-
NOLOGIES.
The Secretary of Energy shall conduct a comprehensive
5-year program for research, development and demonstra-
tion to improve the reliability, efficiency, safety and integ-
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rity of the natural gas transportation and distribution in-
frastructure and for distributed energy resources (including
microturbines, fuel cells, advanced engine-generators, gas
turbines, reciprocating engines, hybrid power generation
systems, and all ancillary equipment for dispatch, control
and maintenance).
SEC. 1236. AUTHORIZATION OF APPROPRIATIONS FOR OF-
FICE OF ARCTIC ENERGY.
There are authorized to be appropriated to the Sec-
retary 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) such sums as
may be necessary, but not to exceed $25,000,000 for each
of fiscal years 2003 through 2011.
SEC. 1237. CLEAN COAL TECHNOLOGY LOAN.
There is authorized to be appropriated not to exceed
$125,000,000 to the Secretary of Energy to provide a loan
to the owner of the experimental plant constructed under
United States Department of Energy cooperative agreement
number DE–FC22–91PC99544 on such terms and condi-
tions as the Secretary determines, including interest rates
and upfront payments.
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Subtitle D—Nuclear Energy
SEC. 1241. ENHANCED NUCLEAR ENERGY RESEARCH AND
DEVELOPMENT.
(a) PROGRAM DIRECTION.—The Secretary shall con-
duct an energy research, development, demonstration, and
technology deployment program to enhance nuclear energy.
(b) PROGRAM GOALS.—The program shall—
(1) support research related to existing United
States nuclear power reactors to extend their lifetimes
and increase their reliability while optimizing their
current operations for greater efficiencies;
(2) examine—
(A) advanced proliferation-resistant and
passively safe reactor designs;
(B) new reactor designs with higher effi-
ciency, lower cost, and improved safety;
(C) in coordination with activities carried
out under the amendments made by section
1223, designs for a high temperature reactor ca-
pable of producing large-scale quantities of hy-
drogen using thermochemical processes;
(D) proliferation-resistant and high-burn-
up nuclear fuels;
(E) minimization of generation of radio-
active materials;
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under paragraph (d)(2) for such leased tract shall be in-
versely proportional to the distance between the nearest
point on the coastline of such State and the geographic cen-
ter of each leased tract or portion of the leased tract (to
the nearest whole mile) that is within 200 miles of that
coastline, as determined by the Secretary. A leased tract or
portion of a leased tract shall be excluded if the tract or
portion is located in a geographic area where a moratorium
on new leasing was in effect on January 1, 2001, unless
the lease was issued prior to the establishment of the mora-
torium and was in production on January 1, 2001.
(f) PAYMENTS TO OCS POLITICAL SUBDIVISIONS.—
Thirty-five percent of each OCS Production State’s allo-
cable share as determined under subsection (e) shall be paid
directly to the OCS political subdivisions by the Secretary
based on the following formula:
(1) twenty-five percent shall be allocated based
on the ratio of such OCS political subdivision’s popu-
lation to the population of all OCS political subdivi-
sions in the OCS Production State.
(2) twenty-five percent shall be allocated based
on the ratio of such OCS political subdivision’s coast-
line miles to the coastline miles of all OCS political
subdivisions in the OCS Production State. For pur-
poses of this subsection, those OCS political subdivi-
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2002)’’ after ‘‘project’’ in clause (ii) (as so redesig-
nated),
(4) by adding at the end the following new sen-
tence: ‘‘This paragraph shall not apply with respect
to 
any 
facility 
described 
in 
subsection
(c)(3)(B)(i)(II).’’, and
(5) by striking ‘‘TAX-EXEMPT
BONDS,’’ in the
heading and inserting ‘‘CERTAIN’’.
(c) EFFECTIVE DATE.—The amendments made by this
section shall apply to electricity sold after the date of the
enactment of this Act, in taxable years ending after such
date.
SEC. 1905. CREDIT FOR ELECTRICITY PRODUCED FROM
SMALL IRRIGATION POWER.
(a) IN GENERAL.—Section 45(c)(1) (defining qualified
energy resources), as amended by this Act, is amended by
striking ‘‘and’’ at the end of subparagraph (F), by striking
the period at the end of subparagraph (G) and inserting
‘‘, and’’, and by adding at the end the following new sub-
paragraph:
‘‘(H) small irrigation power.’’.
(b) QUALIFIED FACILITY.—Section 45(c)(3) (relating
to qualified facility), as amended by this Act, is amended
by adding at the end the following new subparagraph:
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‘‘(B) to limit the capacity of any qualifying
advanced clean coal technology unit to which
this section applies so that the combined mega-
watt capacity of all such units to which this sec-
tion applies does not exceed 4,000 megawatts,
‘‘(C) to provide a certification process de-
scribed in section 45I(e)(3)(C),
‘‘(D) to carry out the purposes described in
subparagraphs (D), (E), and (F) of section
45I(e)(3), and
‘‘(E) to reallocate capacity which is not al-
located to any technology described in subpara-
graphs (A) through (D) of paragraph (1) because
an insufficient number of qualifying units re-
quest an allocation for such technology, to an-
other technology described in such subparagraphs
in order to maximize the amount of energy effi-
cient production encouraged with the available
tax credits.
‘‘(4) SELECTION
CRITERIA.—For purposes of
paragraph (3)(C), the selection criteria for allocating
the national megawatt capacity limitation to quali-
fying advanced clean coal technology units—
‘‘(A) shall be established by the Secretary of
Energy as part of a competitive solicitation,