H. R. 6—537
(2) INCLUSION.—The report shall include a description of 
the results of the analysis under subsection (a)(2). 
SEC. 1817. STUDY OF DISTRIBUTED GENERATION. 
(a) STUDY.— 
(1) IN GENERAL.— 
(A) POTENTIAL BENEFITS.—The Secretary, in consulta-
tion with the Federal Energy Regulatory Commission, shall 
conduct a study of the potential benefits of cogeneration 
and small power production. 
(B) RECIPIENTS.—The benefits described in subpara-
graph (A) include benefits that are received directly or 
indirectly by— 
(i) an electricity distribution or transmission 
service provider; 
(ii) other customers served by an electricity dis-
tribution or transmission service provider; and 
(iii) the general public in the area served by the 
public utility in which the cogenerator or small power 
producer is located. 
(2) INCLUSIONS.—The study shall include an analysis of— 
(A) the potential benefits of— 
(i) increased system reliability; 
(ii) improved power quality; 
(iii) the provision of ancillary services; 
(iv) reduction of peak power requirements through 
onsite generation; 
(v) the provision of reactive power or volt-ampere 
reactives; 
(vi) an emergency supply of power; 
(vii) offsets to investments in generation, trans-
mission, or distribution facilities that would otherwise 
be recovered through rates; 
(viii) diminished land use effects and right-of-way 
acquisition costs; and 
(ix) reducing the vulnerability of a system to ter-
rorism; and 
(B) any rate-related issue that may impede or other-
wise discourage the expansion of cogeneration and small 
power production facilities, including a review of whether 
rates, rules, or other requirements imposed on the facilities 
are comparable to rates imposed on customers of the same 
class that do not have cogeneration or small power produc-
tion. 
(3) VALUATION OF BENEFITS.—In carrying out the study, 
the Secretary shall determine an appropriate method of valuing 
potential benefits under varying circumstances for individual 
cogeneration or small power production units. 
(b) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Secretary shall— 
(1) complete the study; 
(2) provide an opportunity for public comment on the 
results of the study; and 
(3) submit to the President and Congress a report 
describing— 
(A) the results of the study; and
H. R. 6—538
(B) information relating to the public comments 
received under paragraph (2). 
(c) PUBLICATION.—After submission of the report under sub-
section (b) to the President and Congress, the Secretary shall pub-
lish the report. 
SEC. 1818. NATURAL GAS SUPPLY SHORTAGE REPORT. 
(a) IN GENERAL.—Not later than 180 days after the date of 
enactment of this Act, the Secretary shall submit to Congress 
a report on natural gas supplies and demand. 
(b) PURPOSE.—The purpose of the report under subsection (a) 
is to develop recommendations for achieving a balance between 
natural gas supply and demand in order to— 
(1) provide residential consumers with natural gas at 
reasonable and stable prices; 
(2) accommodate long-term maintenance and growth of 
domestic natural gas-dependent industrial, manufacturing, and 
commercial enterprises; 
(3) facilitate the attainment of national ambient air quality 
standards under the Clean Air Act (43 U.S.C. 7401 et seq.); 
(4) achieve continued progress in reducing the emissions 
associated with electric power generation; and 
(5) support the development of the preliminary phases of 
hydrogen-based energy technologies. 
(c) COMPREHENSIVE ANALYSIS.—The report shall include a com-
prehensive analysis of, for the period beginning on January 1, 
2004, and ending on December 31, 2015, natural gas supply and 
demand in the United States, including— 
(1) estimates of annual domestic demand for natural gas, 
taking into consideration the effect of Federal policies and 
actions that are likely to increase or decrease the demand 
for natural gas; 
(2) projections of annual natural gas supplies, from 
domestic and foreign sources, under Federal policies in exist-
ence on the date of enactment of this Act; 
(3) an identification of estimated natural gas supplies that 
are not available under those Federal policies; 
(4) scenarios for decreasing natural gas demand and 
increasing natural gas supplies that compare the relative eco-
nomic and environmental impacts of Federal policies that— 
(A) encourage or require the use of natural gas to 
meet air quality, carbon dioxide emission reduction, or 
energy security goals; 
(B) encourage or require the use of energy sources 
other than natural gas, including coal, nuclear, and renew-
able sources; 
(C) support technologies to develop alternative sources 
of natural gas and synthetic gas, including coal gasification 
technologies; 
(D) encourage or require the use of energy conservation 
and demand side management practices; and 
(E) affect access to domestic natural gas supplies; and 
(5) recommendations for Federal actions to achieve the 
purposes described in subsection (b), including recommenda-
tions that—
H. R. 6—539
(A) encourage or require the use of energy sources 
other than natural gas, including coal, nuclear, and renew-
able sources; 
(B) encourage or require the use of energy conservation 
or demand side management practices; 
(C) support technologies for the development of alter-
native sources of natural gas and synthetic gas, including 
coal gasification technologies; and 
(D) would improve access to domestic natural gas sup-
plies. 
(d) CONSULTATION.—In preparing the report under subsection 
(a), the Secretary shall consult with— 
(1) experts in natural gas supply and demand; and 
(2) representatives of— 
(A) State and local governments; 
(B) tribal organizations; and 
(C) consumer and other organizations. 
(e) HEARINGS.—In preparing the report under subsection (a), 
the Secretary may hold public hearings and provide other opportuni-
ties for public comment, as the Secretary considers appropriate. 
SEC. 1819. HYDROGEN PARTICIPATION STUDY. 
Not later than 1 year after the date of enactment of this 
Act, the Secretary shall submit to Congress a report evaluating 
methodologies to ensure the widest participation practicable in set-
ting goals and milestones under the hydrogen program of the 
Department, including international participants. 
SEC. 1820. OVERALL EMPLOYMENT IN A HYDROGEN ECONOMY. 
(a) STUDY.— 
(1) IN GENERAL.—The Secretary shall carry out a study 
of the likely effects of a transition to a hydrogen economy 
on overall employment in the United States. 
(2) CONTENTS.—In completing the study, the Secretary 
shall take into consideration— 
(A) the replacement effects of new goods and services; 
(B) international competition; 
(C) workforce training requirements; 
(D) multiple possible fuel cycles, including usage of 
raw materials; 
(E) rates of market penetration of technologies; and 
(F) regional variations based on geography. 
(b) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Secretary shall submit to Congress a report 
describing the findings, conclusions, and recommendations of the 
study under subsection (a). 
SEC. 1821. STUDY OF BEST MANAGEMENT PRACTICES FOR ENERGY 
RESEARCH AND DEVELOPMENT PROGRAMS. 
(a) IN GENERAL.—The Secretary shall enter into an arrange-
ment with the National Academy of Public Administration under 
which the Academy shall conduct a study to assess management 
practices for research, development, and demonstration programs 
at the Department. 
(b) SCOPE OF THE STUDY.—The study shall consider— 
(1) management practices that act as barriers between 
the Office of Science and offices conducting mission-oriented 
research;
H. R. 6—540
(2) recommendations for management practices that would 
improve coordination and bridge the innovation gap between 
the Office of Science and offices conducting mission-oriented 
research; 
(3) the applicability of the management practices used by 
the Department of Defense Advanced Research Projects Agency 
to research programs at the Department; 
(4) the advisability of creating an agency within the Depart-
ment modeled after the Department of Defense Advanced 
Research Projects Agency; 
(5) recommendations for management practices that could 
best encourage innovative research and efficiency at the Depart-
ment; and 
(6) any other relevant considerations. 
(c) REPORT.—Not later than 18 months after the date of enact-
ment of this Act, the Secretary shall submit to Congress a report 
on the study conducted under this section. 
SEC. 1822. EFFECT OF ELECTRICAL CONTAMINANTS ON RELIABILITY 
OF ENERGY PRODUCTION SYSTEMS. 
Not later than 180 days after the date of enactment of this 
Act, the Secretary shall enter into a contract with the National 
Academy of Sciences under which the National Academy of Sciences 
shall determine the effect that electrical contaminants (such as 
tin whiskers) may have on the reliability of energy production 
systems, including nuclear energy. 
SEC. 1823. ALTERNATIVE FUELS REPORTS. 
(a) IN GENERAL.—Not later than 1 year after the date of enact-
ment of this Act, the Secretary shall submit to Congress reports 
on the potential for each of biodiesel and hythane to become major, 
sustainable, alternative fuels. 
(b) BIODIESEL REPORT.—The report relating to biodiesel sub-
mitted under subsection (a) shall— 
(1) provide a detailed assessment of— 
(A) potential biodiesel markets and manufacturing 
capacity; and 
(B) environmental and energy security benefits with 
respect to the use of biodiesel; 
(2) identify any impediments, especially in infrastructure 
needed for production, distribution, and storage, to biodiesel 
becoming a substantial source of fuel for conventional diesel 
and heating oil applications; 
(3) identify strategies to enhance the commercial deploy-
ment of biodiesel; and 
(4) include an examination and recommendations, as appro-
priate, of the ways in which biodiesel may be modified to 
be a cleaner-burning fuel. 
(c) HYTHANE REPORT.—The report relating to hythane sub-
mitted under subsection (a) shall— 
(1) provide a detailed assessment of potential hythane mar-
kets and the research and development activities that are nec-
essary to facilitate the commercialization of hythane as a 
competitive, environmentally friendly transportation fuel; 
(2) address— 
(A) the infrastructure necessary to produce, blend, dis-
tribute, and store hythane for widespread commercial pur-
poses; and