SEC. 2. STRATEGIC PETROLEUM RESERVE. 
(a) PETROLEUM ACQUISITION FOR THE STRATEGIC 
PETROLEUM RESERVE.—Section 301(e)(1) of the Energy 
Policy Act of 2005 (42 U.S.C. 6240 note) is amended to 
read as follows: 
‘‘(1) IN GENERAL.—The Secretary shall, as ex-
peditiously as practical, without incurring excessive 
cost or appreciably affecting the price of petroleum 
products to consumers, acquire petroleum in quan-
tities sufficient to fill the available capacity of the 
Strategic Petroleum Reserve, subject to the following 
limitations: 
‘‘(A) SUSPENSION
OF
ROYALTY-IN-KIND 
TRANSFERS
TO
THE
STRATEGIC
PETROLEUM 
RESERVE.—No later than September 30, 2008, 
the Secretary shall sell 13,000,000 barrels of 
petroleum received under the royalty-in-kind 
program. Beginning October 1, 2008, the Sec-
retary shall suspend acquisition of petroleum 
for the Strategic Petroleum Reserve under the 
Royalty-In-Kind program, subject to resump-
tion as provided in subparagraph (B). 
‘‘(B) RESUMPTION OF PETROLEUM ACQUI-
SITION FOR THE STRATEGIC PETROLEUM RE-
SERVE.—The Secretary may resume acquisition 
of petroleum for the Strategic Petroleum Re-
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serve 30 days after notification to Congress 
that— 
‘‘(i)(I) the Secretary projects that the 
United States will fall short of its commit-
ments under the International Energy Pro-
gram within a period of 24 months from 
the date of the projection; or 
‘‘(II) the weighted average price of pe-
troleum for the most recent 90 day period 
is at least 25 percent less than the 24- 
month historical average price; and 
‘‘(ii) that resumption of Strategic Pe-
troleum Reserve fill will not have an appre-
ciable effect on the price of petroleum 
products to consumers within the following 
12-month period after the resumption of 
acquisition. 
‘‘(C) FUTURE SUSPENSION OF STRATEGIC 
PETROLEUM
RESERVE
PETROLEUM
ACQUISI-
TION.—During any period in which the Sec-
retary is acquiring petroleum for the Strategic 
Petroleum Reserve, the Secretary shall suspend 
acquisition activities if— 
‘‘(i) the monthly weighted average 
price of petroleum increases by more than 
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20 percent over any period of 6 months or 
less; or 
‘‘(ii) the Secretary determines that 
continued Strategic Petroleum Reserve fill 
may have an appreciable impact on prices 
of petroleum products in future months.’’. 
(b) REVISED PROCEDURES.—No later than 60 days 
after the date of the enactment of this section, the Sec-
retary shall publish revised procedures under section 
301(e)(2) of the Energy Policy Act of 2005 consistent 
with the provisions contained in the amendment made by 
subsection (a). 
SEC. 3. ENERGY INDEPENDENCE AND SECURITY FUND. 
(a) ESTABLISHMENT.—There is hereby established in 
the Treasury of the United States the ‘‘Energy Independ-
ence and Security Fund’’ (hereinafter in this section re-
ferred to as ‘‘the Fund’’). 
(b) ADMINISTRATION.—The Secretary of Energy 
shall be responsible for administering the Fund for the 
purpose of carrying out this section. 
(c) DEPOSITS.—All proceeds from sales of petroleum 
from the Strategic Petroleum Reserve, as authorized in 
section 301(e)(1) of the Energy Policy Act of 2005 (as 
amended by section 2 of this Act), after deduction of the 
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direct administrative costs associated with such sales, 
shall be deposited in the Fund. 
(d) DISTRIBUTION OF FUNDS.—The Secretary shall 
make available for obligation, without further appropria-
tion and without fiscal year limitation, the following 
amounts from the Fund: 
(1) ADVANCED RESEARCH PROJECTS AGENCY— 
ENERGY.—For fiscal year 2008, the Secretary shall 
transfer $100,000,000 to the ‘‘Energy Trans-
formation Acceleration Fund’’, as authorized in sec-
tion 5012(m) of the America COMPETES Act (42 
U.S.C. 16538(m)), to remain available until ex-
pended. Of the funds transferred, the Secretary shall 
further allocate the amounts made available for obli-
gation as follows: 
(A) $50,000,000 shall be available for uni-
versity-based research projects. 
(B) $10,000,000 shall be available for pro-
gram direction expenses. 
(2) RURAL
WIND
ENERGY.—For fiscal year 
2008, the Secretary shall transfer $15,000,000 to 
the account ‘‘Energy Efficiency and Renewable En-
ergy’’, to remain available until expended, for nec-
essary expenses for a program to support the devel-
opment of infrastructure necessary for deployment 
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of wind energy systems in rural areas, as authorized 
in section 931(f)(1) of the Energy Policy Act of 
2005 (42 U.S.C. 16231(f)(1)). 
(3) SOLAR ENERGY RESEARCH AND DEVELOP-
MENT.—For fiscal year 2008, the Secretary shall 
transfer $30,000,000 to the account ‘‘Energy Effi-
ciency and Renewable Energy’’, to remain available 
until expended, for necessary expenses for a program 
to accelerate the research, development, demonstra-
tion, and deployment of solar energy technologies, as 
authorized by section 931(a)(2)(A) of the Energy 
Policy Act of 2005 (42 U.S.C. 16231(a)(2)(A)). 
(4) LOW INCOME WEATHERIZATION.—For fiscal 
year 
2008, 
the 
Secretary 
shall 
transfer 
$100,000,000 to the account ‘‘Weatherization As-
sistance Program’’, to remain available until ex-
pended, for necessary expenses for a program to 
weatherize low income housing, as authorized by sec-
tion 411 of the Energy Independence and Security 
Act of 2007 (Public Law 110–140). 
(5) MARINE AND HYDROKINETIC RENEWABLE 
ELECTRIC ENERGY.—For fiscal year 2008, the Sec-
retary shall transfer $30,000,000 to the account 
‘‘Energy Efficiency and Renewable Energy’’, to re-
main available until expended, for necessary ex-
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penses for a program to accelerate the research, de-
velopment, demonstration, and deployment of ocean 
and wave energy, including hydrokinetic renewable 
energy, as authorized by section 931 of the Energy 
Policy Act of 2005 (42 U.S.C. 16231) and section 
636 of the Energy Independence and Security Act of 
2007 (Public Law 110–140). 
(6) INDUSTRIAL
ENERGY
EFFICIENCY
RE-
SEARCH AND DEVELOPMENT.—For fiscal year 2008, 
the Secretary shall transfer $110,000,000 to the ac-
count ‘‘Energy Efficiency and Renewable Energy’’, 
to remain available until expended, for necessary ex-
penses for a program to accelerate the research, de-
velopment, demonstration, and deployment of new 
technologies to improve the energy efficiency and re-
duce greenhouse gas emissions from industrial proc-
esses, as authorized in section 911(a)(2)(C) of the 
Energy 
Policy 
Act 
of 
2005 
(42 
U.S.C. 
16191(a)(2)(C)) and in section 452 of the Energy 
Independence and Security Act of 2007 (Public Law 
110–140). 
(7) BUILDING ENERGY EFFICIENCY RESEARCH 
AND DEVELOPMENT.—For fiscal year 2008, the Sec-
retary shall transfer $70,000,000 to the account 
‘‘Energy Efficiency and Renewable Energy’’, to re-
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(11) NONCONVENTIONAL
DOMESTIC
NATURAL 
GAS AND PETROLEUM PRODUCTION AND ENVIRON-
MENTAL RESEARCH.— 
(A) For fiscal year 2008, the Secretary 
shall transfer $50,000,000 to the ‘‘Ultra-Deep-
water and Unconventional Natural Gas and 
Other Petroleum Research Fund’’, to remain 
available until expended, as authorized by sec-
tion 999H(e) of the Energy Policy Act of 2005 
(42 U.S.C. 16378(e)). 
(B) For fiscal year 2008, the Secretary 
shall transfer $15,000,000 to the account ‘‘Fos-
sil Energy Research and Development’’, to re-
main available until expended, for necessary ex-
penses for a program of environmental research 
in support of small producers of domestic petro-
leum and natural gas, for regulatory analysis 
and for support for the stripper well consor-
tium. 
(12) HYDROGEN
RESEARCH
AND
DEVELOP-
MENT.—For fiscal year 2008, the Secretary shall 
transfer $5,000,000 to the account ‘‘Energy Effi-
ciency and Renewable Energy’’, to remain available 
until expended, for necessary expenses for the De-
partment’s H-Prize Program, as authorized by sec-
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tion 654 of the Energy Independence and Security 
Act of 2007 (Public Law 110–140). 
(e) AMENDMENTS.—(1) Section 999F of the Energy 
Policy Act of 2005 (42 U.S.C. 16376) is amended by 
striking ‘‘2014’’ and inserting ‘‘2017’’. 
(2) Section 999B(e) of that Act (42 U.S.C.16372(e)) 
is amended by striking paragraph (3) and inserting the 
following: 
‘‘(3) PUBLICATION.—The Secretary shall pub-
lish in the Federal Register the annual plan, along 
with any written comments received under para-
graph (2)(A) and (B).’’. 
(3) Section 999H(b) of that Act (42 U.S.C.16378(b)) 
is amended by inserting ‘‘, and shall be exempt from sub-
chapter II of chapter 15 of title 31, United States Code’’ 
after ‘‘available until expended’’. 
(f) TRANSFER PROCEDURES.—The Secretary shall 
make an initial transfer from the Fund no later than 30 
days after the initial deposit of monies into the Fund. The 
Secretary shall make additional transfers no later than 30 
days after subsequent deposits, until the full amounts au-
thorized for fiscal 2008 have been transferred. To the ex-
tent that any transfer in fiscal 2008 is less than the au-
thorized total, the transfers shall be made on a pro rata 
basis. 
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(g) MANAGEMENT AND OVERSIGHT.— 
(1) ADDITIONALITY
OF
FISCAL
YEAR
2008 
TRANSFERS.—All amounts transferred under sub-
section (d)(1) shall be in addition to, and shall not 
be substituted for, any funds appropriated for the 
same or similar purposes in the Consolidated Appro-
priations Act, 2008. 
(2) PROGRAM PLANS AND PERFORMANCE MEAS-
URES.—The Secretary shall prepare and publish in 
the Federal Register a plan for the proposed use of 
all funds authorized in subsection (d). The plan also 
shall identify how the use of these funds will be ad-
ditive to, and not displace annual appropriations. 
The plans also shall identify performance measures 
to assess the additional benefits that may be realized 
from the application of the additional funding pro-
vided under this section. The initial plan shall be 
published in the Federal Register within 90 days 
from enactment of this section, and shall be updated 
annually and submitted to Congress together with 
the President’s budget. 
(3) CONGRESSIONAL
OVERSIGHT
AND
RE-
VIEW.—Nothing in this section shall limit or restrict 
the review and oversight of program plans by the ap-
propriate committees of Congress. Nothing in this 
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section shall limit or restrict the authority of Con-
gress to set alternative spending limitations in an-
nual appropriations Acts. 
(4) APPORTIONMENT.—All transactions of the 
Fund shall be exempt from apportionment under the 
provisions of subchapter II of chapter 15 of title 31, 
United States Code. 
(5) USE
OF
OTHER
TRANSACTIONS
AUTHOR-
ITY.—(A) Any solicitation for research, development, 
or demonstration project proposals to be funded 
under this section shall provide for and encourage 
the use of Other Transactions Authority, including 
Technology Investment Agreements as authorized by 
section 646(g) of the Department of Energy Organi-
zation Act (42 U.S.C. 7256) and Part 603 of the 
Department of Energy Acquisition Regulation. 
(B) Any solicitation for a commercial dem-
onstration project under this section shall require 
the use of Other Transactions Authority, including 
Technology Investment Agreements, as authorized 
by section 646(g) of the Department of Energy Or-
ganization Act (42 U.S.C. 7256) and Part 603 of 
the Department of Energy Acquisition Regulation. 
Æ 
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