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ka Natural Gas Transportation Act of 1976 (15
U.S.C. 719–719o), which remains in effect;
(2) to establish a process for providing access to
such transportation project in order to promote com-
petition in the exploration, development and produc-
tion of Alaska natural gas;
(3) to clarify Federal authorities under the Alas-
ka Natural Gas Transportation Act; and
(4) to authorize Federal financial assistance to
an Alaska natural gas transportation project as pro-
vided in this subtitle.
SEC. 704. ISSUANCE OF CERTIFICATE OF PUBLIC CONVEN-
IENCE AND NECESSITY.
(a) AUTHORITY
OF
THE
COMMISSION.—Notwith-
standing the provisions of the Alaska Natural Gas Trans-
portation Act of 1976 (15 U.S.C. 719–719o), the Commis-
sion may, pursuant to section 7(c) of the Natural Gas Act
(15 U.S.C. 717f(c)), consider and act on an application for
the issuance of a certificate of public convenience and neces-
sity authorizing the construction and operation of an Alas-
ka natural gas transportation project other than the Alaska
Natural Gas Transportation System.
(b) ISSUANCE OF CERTIFICATE.—(1) The Commission
shall issue a certificate of public convenience and necessity
authorizing the construction and operation of an Alaska
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natural gas transportation project under this section if the
applicant has satisfied the requirements of section 7(e) of
the Natural Gas Act (15 U.S.C. 717f(e)).
(2) In considering an application under this section,
the Commission shall presume that—
(A) a public need exists to construct and operate
the proposed Alaska natural gas transportation
project; and
(B) sufficient downstream capacity will exist to
transport the Alaska natural gas moving through such
project to markets in the contiguous United States.
(c) EXPEDITED APPROVAL PROCESS.—The Commis-
sion shall issue a final order granting or denying any ap-
plication for a certificate of public convenience and neces-
sity under section 7(c) of the Natural Gas Act (15 U.S.C.
717f(c)) and this section not more than 60 days after the
issuance of the final environmental impact statement for
that project pursuant to section 705.
(d) PROHIBITION ON CERTAIN PIPELINE ROUTE.—No
license, permit, lease, right-of-way, authorization or other
approval required under Federal law for the construction
of any pipeline to transport natural gas from lands within
the Prudhoe Bay oil and gas lease area may be granted
for any pipeline that follows a route that traverses—
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(1) the submerged lands (as defined by the Sub-
merged Lands Act) beneath, or the adjacent shoreline
of, the Beaufort Sea; and
(2) enters Canada at any point north of 68 de-
grees North latitude.
(e) OPEN SEASON.—Except where an expansion is or-
dered pursuant to section 706, initial or expansion capacity
on any Alaska natural gas transportation project shall be
allocated in accordance with procedures to be established
by the Commission in regulations governing the conduct of
open seasons for such project. Such procedures shall include
the criteria for and timing of any open seasons, be con-
sistent with the purposes set forth in section 703(2) and,
for any open season for capacity beyond the initial capac-
ity, provide the opportunity for the transportation of nat-
ural gas other than from the Prudhoe Bay and Point
Thompson units. The Commission shall issue such regula-
tions no later than 120 days after the enactment of this
subtitle.
(f) PROJECTS IN THE CONTIGUOUS UNITED STATES.—
Applications for additional or expanded pipeline facilities
that may be required to transport Alaska natural gas from
Canada to markets in the contiguous United States may
be made pursuant to the Natural Gas Act. To the extent
such pipeline facilities include the expansion of any facility
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constructed pursuant to the Alaska Natural Gas Transpor-
tation Act of 1976, the provisions of that Act shall continue
to apply.
(g) STUDY OF IN-STATE NEEDS.—The holder of the
certificate of public convenience and necessity issued, modi-
fied, or amended by the Commission for an Alaska natural
gas transportation project shall demonstrate that it has con-
ducted a study of Alaska in-State needs, including tie-in
points along the Alaska natural gas transportation project
for in-State access.
(h) ALASKA ROYALTY GAS.—The Commission, upon
the request of the State of Alaska and after a hearing, may
provide for reasonable access to the Alaska natural gas
transportation project for the State of Alaska or its designee
for the transportation of the State’s royalty gas for local
consumption needs within the State: Provided, That the
rates of existing shippers of subscribed capacity on such
project shall not be increased as a result of such access.
(i) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section.
SEC. 705. ENVIRONMENTAL REVIEWS.
(a) COMPLIANCE WITH NEPA.—The issuance of a cer-
tificate of public convenience and necessity authorizing the
construction and operation of any Alaska natural gas
transportation project under section 704 shall be treated as
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a major Federal action significantly affecting the quality
of the human environment within the meaning of section
102(2)(C) of the National Environmental Policy Act of
1969 (42 U.S.C. 4332(2)(C)).
(b) DESIGNATION OF LEAD AGENCY.—The Commis-
sion shall be the lead agency for purposes of complying with
the National Environmental Policy Act of 1969, and shall
be responsible for preparing the statement required by sec-
tion 102(2)(c) of that Act (42 U.S.C. 4332(2)(c)) with re-
spect to an Alaska natural gas transportation project under
section 704. The Commission shall prepare a single environ-
mental statement under this section, which shall consolidate
the environmental reviews of all Federal agencies consid-
ering any aspect of the project.
(c) OTHER AGENCIES.—All Federal agencies consid-
ering aspects of the construction and operation of an Alaska
natural gas transportation project under section 704 shall
cooperate with the Commission, and shall comply with
deadlines established by the Commission in the preparation
of the statement under this section. The statement prepared
under this section shall be used by all such agencies to sat-
isfy their responsibilities under section 102(2)(C) of the Na-
tional Environmental Policy Act of 1969 (42 U.S.C.
4332(2)(C)) with respect to such project.
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(d) EXPEDITED PROCESS.—The Commission shall
issue a draft statement under this section not later than
12 months after the Commission determines the application
to be complete and shall issue the final statement not later
than 6 months after the Commission issues the draft state-
ment, unless the Commission for good cause finds that addi-
tional time is needed.
SEC. 706. PIPELINE EXPANSION.
(a) AUTHORITY.—With respect to any Alaska natural
gas transportation project, upon the request of one or more
persons and after giving notice and an opportunity for a
hearing, the Commission may order the expansion of such
project if it determines that such expansion is required by
the present and future public convenience and necessity.
(b) REQUIREMENTS.—Before ordering an expansion
the Commission shall—
(1) approve or establish rates for the expansion
service that are designed to ensure the recovery, on an
incremental or rolled-in basis, of the cost associated
with the expansion (including a reasonable rate of re-
turn on investment);
(2) ensure that the rates as established do not re-
quire existing shippers on the Alaska natural gas
transportation project to subsidize expansion ship-
pers;
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(3) find that the proposed shipper will comply
with, and the proposed expansion and the expansion
of service will be undertaken and implemented based
on, terms and conditions consistent with the then-ef-
fective tariff of the Alaska natural gas transportation
project;
(4) find that the proposed facilities will not ad-
versely affect the financial or economic viability of the
Alaska natural gas transportation project;
(5) find that the proposed facilities will not ad-
versely affect the overall operations of the Alaska nat-
ural gas transportation project;
(6) find that the proposed facilities will not di-
minish the contract rights of existing shippers to pre-
viously subscribed certificated capacity;
(7) ensure that all necessary environmental re-
views have been completed; and
(8) find that adequate downstream facilities exist
or are expected to exist to deliver incremental Alaska
natural gas to market.
(c) REQUIREMENT
FOR
A FIRM TRANSPORTATION
AGREEMENT.—Any order of the Commission issued pursu-
ant to this section shall be null and void unless the person
or persons requesting the order executes a firm transpor-
tation agreement with the Alaska natural gas transpor-
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tation project within a reasonable period of time as speci-
fied in such order.
(d) LIMITATION.—Nothing in this section shall be con-
strued to expand or otherwise affect any authorities of the
Commission with respect to any natural gas pipeline lo-
cated outside the State of Alaska.
(e) REGULATIONS.—The Commission may issue regu-
lations to carry out the provisions of this section.
SEC. 707. FEDERAL COORDINATOR.
(a) ESTABLISHMENT.—There is established as an inde-
pendent establishment in the executive branch, the Office
of the Federal Coordinator for Alaska Natural Gas Trans-
portation Projects.
(b) THE FEDERAL COORDINATOR.—The Office shall be
headed by a Federal Coordinator for Alaska Natural Gas
Transportation Projects, who shall—
(1) be appointed by the President, by and with
the advice of the Senate,
(2) hold office at the pleasure of the President,
and
(3) be compensated at the rate prescribed for
level III of the Executive Schedule (5 U.S.C. 5314).
(c) DUTIES.—The Federal Coordinator shall be respon-
sible for—
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(1) coordinating the expeditious discharge of all
activities by Federal agencies with respect to an Alas-
ka natural gas transportation project; and
(2) ensuring the compliance of Federal agencies
with the provisions of this subtitle.
(d) REVIEWS
AND ACTIONS
OF OTHER FEDERAL
AGENCIES.—(1) All reviews conducted and actions taken by
any Federal officer or agency relating to an Alaska natural
gas transportation project authorized under this section
shall be expedited, in a manner consistent with completion
of the necessary reviews and approvals by the deadlines set
forth in this subtitle.
(2) No Federal officer or agency shall have the author-
ity to include terms and conditions that are permitted, but
not required, by law on any certificate, right-of-way, per-
mit, lease or other authorization issued to an Alaska nat-
ural gas transportation project if the Federal Coordinator
determines that the terms and conditions would prevent or
impair in any significant respect the expeditious construc-
tion and operation of the project.
(3) Unless required by law, no Federal officer or agen-
cy shall add to, amend, or abrogate any certificate, right-
of-way, permit, lease or other authorization issued to an
Alaska natural gas transportation project if the Federal Co-
ordinator determines that such action would prevent or im-
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pair in any significant respect the expeditious construction
and operation of the project.
(e) STATE COORDINATION.—The Federal Coordinator
shall enter into a Joint Surveillance and Monitoring Agree-
ment, approved by the President and the Governor of Alas-
ka, with the State of Alaska similar to that in effect during
construction of the Trans-Alaska Oil Pipeline to monitor
the construction of the Alaska natural gas transportation
project. The Federal Government shall have primary sur-
veillance and monitoring responsibility where the Alaska
natural gas transportation project crosses Federal lands
and private lands, and the State government shall have pri-
mary surveillance and monitoring responsibility where the
Alaska natural gas transportation project crosses State
lands.
SEC. 708. JUDICIAL REVIEW.
(a) EXCLUSIVE JURISDICTION.—The United States
Court of Appeals for the District of Columbia Circuit shall
have exclusive jurisdiction to determine—
(1) the validity of any final order or action (in-
cluding a failure to act) of any Federal agency or of-
ficer under this subtitle;
(2) the constitutionality of any provision of this
subtitle, or any decision made or action taken there-
under; or
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(3) the adequacy of any environmental impact
statement prepared under the National Environ-
mental Policy Act of 1969 with respect to any action
under this subtitle.
(b) DEADLINE FOR FILING CLAIM.—Claims arising
under this subtitle may be brought not later than 60 days
after the date of the decision or action giving rise to the
claim.
(c) EXPEDITED CONSIDERATION.—The United States
Court of Appeals for the District of Columbia Circuit shall
set any action brought under subsection (a) of this section
for expedited consideration, taking into account the na-
tional interest as described in section 702 of this subtitle.
(d) AMENDMENT TO ANGTA.—Section 10(c) of the
Alaska Gas Transportation Act of 1976 (15 U.S.C. 719h)
is amended by adding the following paragraph:
‘‘(2) EXPEDITED CONSIDERATION.—The United
States Court of Appeals for the District of Columbia
Circuit shall set any action brought under subsection
(a) of this section for expedited consideration, taking
into account the national interest described in section
2 of this Act.’’.
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SEC. 709. STATE JURISDICTION OVER IN-STATE DELIVERY
OF NATURAL GAS.
(a) LOCAL DISTRIBUTION.—Any facility receiving
natural gas from the Alaska natural gas transportation
project for delivery to consumers within the State of Alaska
shall be deemed to be a local distribution facility within
the meaning of section 1(b) of the Natural Gas Act (15
U.S.C. 717), and therefore not subject to the jurisdiction
of the Federal Energy Regulatory Commission.
(b) ADDITIONAL PIPELINES.—Nothing in this subtitle,
except as provided in subsection 704(d), shall preclude or
affect a future gas pipeline that may be constructed to de-
liver natural gas to Fairbanks, Anchorage, Matanuska-
Susitna Valley, or the Kenai peninsula or Valdez or any
other site in the State of Alaska for consumption within
or distribution outside the State of Alaska.
(c) RATE COORDINATION.—Pursuant to the Natural
Gas Act, the Commission shall establish rates for the trans-
portation of natural gas on the Alaska natural gas trans-
portation project. In exercising such authority, the Commis-
sion, pursuant to Section 17(b) of the Natural Gas Act (15
U.S.C. 717p), shall confer with the State of Alaska regard-
ing rates (including rate settlements) applicable to natural
gas transported on and delivered from the Alaska natural
gas transportation project for use within the State of Alas-
ka.
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SEC. 710. LOAN GUARANTEE.
(a) AUTHORITY.—The Secretary of Energy may guar-
antee not more than 80 percent of the principal of any loan
made to the holder of a certificate of public convenience and
necessity issued under section 704(b) of this Act or section
9 of the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719g) for the purpose of constructing an Alaska
natural gas transportation project.
(b) CONDITIONS.—(1) The Secretary of Energy may
not guarantee a loan under this section unless the guarantee
has filed an application for a certificate of public conven-
ience and necessity under section 704(b) of this Act or for
an amended certificate under section 9 of the Alaska Nat-
ural Gas Transportation Act of 1976 (15 U.S.C. 719g) with
the Commission not later than 18 months after the date of
enactment of this subtitle.
(2) A loan guaranteed under this section shall be made
by a financial institution subject to the examination of the
Secretary.
(3) Loan requirements, including term, maximum size,
collateral requirements and other features shall be deter-
mined by the Secretary.
(c) LIMITATION ON AMOUNT.—Commitments to guar-
antee loans may be made by the Secretary of Energy only
to the extent that the total loan principal, any part of which
is guaranteed, will not exceed $10,000,000,000.
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(d) REGULATIONS.—The Secretary of Energy may
issue regulations to carry out the provisions of this section.
(e) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated to the Secretary such sums
as may be necessary to cover the cost of loan guarantees,
as defined by section 502(5) of the Federal Credit Reform
Act of 1990 (2 U.S.C. 661a(5)).
SEC. 711. STUDY OF ALTERNATIVE MEANS OF CONSTRUC-
TION.
(a) REQUIREMENT OF STUDY.—If no application for
the issuance of a certificate or amended certificate of public
convenience and necessity authorizing the construction and
operation of an Alaska natural gas transportation project
has been filed with the Commission within 18 months after
the date of enactment of this title, the Secretary of Energy
shall conduct a study of alternative approaches to the con-
struction and operation of the project.
(b) SCOPE OF STUDY.—The study shall consider the
feasibility of establishing a Government corporation to con-
struct an Alaska natural gas transportation project, and
alternative means of providing Federal financing and own-
ership (including alternative combinations of Government
and private corporate ownership) of the project.
(c) CONSULTATION.—In conducting the study, the Sec-
retary of Energy shall consult with the Secretary of the
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Treasury and the Secretary of the Army (acting through
the Commanding General of the Corps of Engineers).
(d) REPORT.—If the Secretary of Energy is required
to conduct a study under subsection (a), he shall submit
a report containing the results of the study, his rec-
ommendations, and any proposals for legislation to imple-
ment his recommendations to the Congress within 6 months
after the expiration of the Secretary of Energy’s authority
to guarantee a loan under section 710.
SEC. 712. CLARIFICATION OF ANGTA STATUS AND AUTHORI-
TIES.
(a) SAVINGS CLAUSE.—Nothing in this subtitle affects
any decision, certificate, permit, right-of-way, lease, or
other authorization issued under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g)
or any Presidential findings or waivers issued in accord-
ance with that Act.
(b) CLARIFICATION OF AUTHORITY TO AMEND TERMS
AND CONDITIONS TO MEET CURRENT PROJECT REQUIRE-
MENTS.—Any Federal officer or agency responsible for
granting or issuing any certificate, permit, right-of-way,
lease, or other authorization under section 9 of the Alaska
Natural Gas Transportation Act of 1976 (15 U.S.C. 719g)
may add to, amend, or abrogate any term or condition in-
cluded in such certificate, permit, right-of-way, lease, or
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other authorization to meet current project requirements
(including the physical design, facilities, and tariff speci-
fications), so long as such action does not compel a change
in the basic nature and general route of the Alaska Natural
Gas Transportation System as designated and described in
section 2 of the President’s Decision, or would otherwise
prevent or impair in any significant respect the expeditious
construction and initial operation of such transportation
system.
(c) UPDATED ENVIRONMENTAL REVIEWS.—The Sec-
retary of Energy shall require the sponsor of the Alaska
Natural Gas Transportation System to submit such up-
dated environmental data, reports, permits, and impact
analyses as the Secretary determines are necessary to de-
velop detailed terms, conditions, and compliance plans re-
quired by section 5 of the President’s Decision.
SEC. 713. DEFINITIONS.
For purposes of this subtitle:
(1) The term ‘‘Alaska natural gas’’ means nat-
ural gas derived from the area of the State of Alaska
lying north of 64 degrees North latitude.
(2) The term ‘‘Alaska natural gas transportation
project’’ means any natural gas pipeline system that
carries Alaska natural gas to the border between Alas-
ka and Canada (including related facilities subject to
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the jurisdiction of the Commission) that is authorized
under either—
(A) the Alaska Natural Gas Transportation
Act of 1976 (15 U.S.C. 719–719o); or
(B) section 704 of this subtitle.
(3) The term ‘‘Alaska Natural Gas Transpor-
tation System’’ means the Alaska natural gas trans-
portation project authorized under the Alaska Natural
Gas Transportation Act of 1976 and designated and
described in section 2 of the President’s Decision.
(4) The term ‘‘Commission’’ means the Federal
Energy Regulatory Commission.
(5) The term ‘‘President’s Decision’’ means the
Decision and Report to Congress on the Alaska Nat-
ural Gas Transportation system issued by the Presi-
dent on September 22, 1977 pursuant to section 7 of
the Alaska Natural Gas Transportation Act of 1976
(15 U.S.C. 719c) and approved by Public Law 95–
158.
SEC. 714. SENSE OF THE SENATE.
It is the sense of the Senate that an Alaska natural
gas transportation project will provide significant economic
benefits to the United States and Canada. In order to maxi-
mize those benefits, the Senate urges the sponsors of the
pipeline project to make every effort to use steel that is man-
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ufactured or produced in North America and to negotiate
a project labor agreement to expedite construction of the
pipeline.
SEC. 715. ALASKAN PIPELINE CONSTRUCTION TRAINING
PROGRAM.
(a) Within six months after enactment of this Act, the
Secretary of Labor (in this section referred to as the ‘‘Sec-
retary’’) shall submit a report to the Committee on Energy
and Natural Resources of the United States Senate and the
Committee on Resources of the United States House of Rep-
resentatives setting forth a program to train Alaska resi-
dents in the skills and crafts required in the design, con-
struction, and operation of an Alaska gas pipeline system
and that will enhance employment and contracting oppor-
tunities for Alaskan residents. The report shall also describe
any laws, rules, regulations and policies which act as a de-
terrent to hiring Alaskan residents or contracting with
Alaskan residents to perform work on Alaska gas pipelines,
together with any recommendations for change. For pur-
poses of this subsection, Alaskan residents shall be defined
as those individuals eligible to vote within the State of Alas-
ka on the date of enactment of this Act.
(b) Within 1 year of the date the report is transmitted
to Congress, the Secretary shall establish within the State
of Alaska, at such locations as are appropriate, one or more
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training centers for the express purpose of training Alaskan
residents in the skills and crafts necessary in the design,
construction and operation of gas pipelines in Alaska. Each
such training center shall also train Alaskan residents in
the skills required to write, offer, and monitor contracts in
support of the design, construction, and operation of Alaska
gas pipelines.
(c) In implementing the report and program described
in this subsection, the Secretary shall consult with the Alas-
kan Governor.
(d) There are authorized to be appropriated to the Sec-
retary such sums as may be necessary, but not to exceed
$20,000,000 for the purposes of this subsection.
Subtitle B—Operating Pipelines
SEC. 721. ENVIRONMENTAL REVIEW AND PERMITTING OF
NATURAL GAS PIPELINE PROJECTS.
(a) INTERAGENCY REVIEW.—The Chairman of the
Council on Environmental Quality, in coordination with
the Federal Energy Regulatory Commission, shall establish
an interagency task force to develop an interagency memo-
randum of understanding to expedite the environmental re-
view and permitting of natural gas pipeline projects.
(b) MEMBERSHIP OF INTERAGENCY TASK FORCE.—
The task force shall consist of—
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(1) the Chairman of the Council on Environ-
mental Quality, who shall serve as the Chairman of
the interagency task force,
(2) the Chairman of the Federal Energy Regu-
latory Commission,
(3) the Director of the Bureau of Land Manage-
ment,
(4) the Director of the United States Fish and
Wildlife Service,
(5) the Commanding General, United States
Army Corps of Engineers,
(6) the Chief of the Forest Service,
(7) the Administrator of the Environmental Pro-
tection Agency,
(8) the Chairman of the Advisory Council on
Historic Preservation, and
(9) the heads of such other agencies as the Chair-
man of the Council on Environmental Quality and
the Chairman of the Federal Energy Regulatory Com-
mission deem appropriate.
(c) MEMORANDUM OF UNDERSTANDING.—The agencies
represented by the members of the interagency task force
shall enter into the memorandum of understanding not
later than 1 year after the date of the enactment of this
section.
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Subtitle C—Pipeline Safety
PART I—SHORT TITLE; AMENDMENT OF
TITLE 49
SEC. 741. SHORT TITLE; AMENDMENT OF TITLE 49, UNITED
STATES CODE.
(a) SHORT TITLE.—This subtitle may be cited as the
‘‘Pipeline Safety Improvement Act of 2002’’.
(b) AMENDMENT
OF TITLE 49, UNITED STATES
CODE.—Except as otherwise expressly provided, whenever
in this subtitle an amendment or repeal is expressed in
terms of an amendment to, or a repeal of, a section or other
provision, the reference shall be considered to be made to
a section or other provision of title 49, United States Code.
PART II—PIPELINE SAFETY
IMPROVEMENT ACT OF 2002
SEC. 761. IMPLEMENTATION OF INSPECTOR GENERAL REC-
OMMENDATIONS.
(a) IN GENERAL.—Except as otherwise required by
this subtitle, the Secretary shall implement the safety im-
provement recommendations provided for in the Depart-
ment of Transportation Inspector General’s Report (RT–
2000–069).
(b) REPORTS BY THE SECRETARY.—Not later than 90
days after the date of enactment of this Act, and every 90
days thereafter until each of the recommendations referred
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to in subsection (a) has been implemented, the Secretary
shall transmit to the Committee on Commerce, Science, and
Transportation of the Senate and the Committee on Trans-
portation and Infrastructure of the House of Representa-
tives a report on the specific actions taken to implement
such recommendations.
(c) REPORTS BY THE INSPECTOR GENERAL.—The In-
spector General shall periodically transmit to the commit-
tees referred to in subsection (b) a report assessing the Sec-
retary’s progress in implementing the recommendations re-
ferred to in subsection (a) and identifying options for the
Secretary to consider in accelerating recommendation im-
plementation.
SEC. 762. NTSB SAFETY RECOMMENDATIONS.
(a) IN GENERAL.—The Secretary of Transportation,
the Administrator of Research and Special Program Ad-
ministration, and the Director of the Office of Pipeline
Safety shall fully comply with section 1135 of title 49,
United States Code, to ensure timely responsiveness to Na-
tional Transportation Safety Board recommendations
about pipeline safety.
(b) PUBLIC AVAILABILITY.—The Secretary, Adminis-
trator, or Director, respectively, shall make a copy of each
recommendation on pipeline safety and response, as de-
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scribed in sections 1135 (a) and (b) of title 49, United
States Code, available to the public at reasonable cost.
(c) REPORTS TO CONGRESS.—The Secretary, Admin-
istrator, or Director, respectively, shall submit to the Con-
gress by January 1 of each year a report containing each
recommendation on pipeline safety made by the Board dur-
ing the prior year and a copy of the response to each such
recommendation.
SEC. 763. QUALIFICATIONS OF PIPELINE PERSONNEL.
(a) QUALIFICATION PLAN.—Each pipeline operator
shall make available to the Secretary of Transportation, or,
in the case of an intrastate pipeline facility operator, the
appropriate State regulatory agency, a plan that is de-
signed to enhance the qualifications of pipeline personnel
and to reduce the likelihood of accidents and injuries. The
plan shall be made available not more than 6 months after
the date of enactment of this Act, and the operator shall
revise or update the plan as appropriate.
(b) REQUIREMENTS.—The enhanced qualification plan
shall include, at a minimum, criteria to demonstrate the
ability of an individual to safely and properly perform
tasks identified under section 60102 of title 49, United
States Code. The plan shall also provide for training and
periodic reexamination of pipeline personnel qualifications
and provide for requalification as appropriate. The Sec-
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retary, or, in the case of an intrastate pipeline facility oper-
ator, the appropriate State regulatory agency, may review
and certify the plans to determine if they are sufficient to
provide a safe operating environment and shall periodically
review the plans to ensure the continuation of a safe oper-
ation. The Secretary may establish minimum standards for
pipeline personnel training and evaluation, which may in-
clude written examination, oral examination, work per-
formance history review, observation during performance
on the job, on the job training, simulations, or other forms
of assessment.
(c) REPORT TO CONGRESS.—
(1) IN GENERAL.—The Secretary shall submit a
report to the Congress evaluating the effectiveness of
operator 
qualification 
and 
training 
efforts,
including—
(A) actions taken by inspectors;
(B) recommendations made by inspectors
for changes to operator qualification and train-
ing programs; and
(C) industry and employee organization re-
sponses to those actions and recommendations.
(2) CRITERIA.—The Secretary may establish cri-
teria for use in evaluating and reporting on operator
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qualification and training for purposes of this sub-
section.
(3) DUE DATE.—The Secretary shall submit the
report required by paragraph (1) to the Congress 3
years after the date of enactment of this Act.
SEC. 764. PIPELINE INTEGRITY INSPECTION PROGRAM.
Section 60109 is amended by adding at the end the
following:
‘‘(c) INTEGRITY MANAGEMENT.—
‘‘(1) GENERAL
REQUIREMENT.—The Secretary
shall promulgate regulations requiring operators of
hazardous liquid pipelines and natural gas trans-
mission pipelines to evaluate the risks to the opera-
tor’s pipeline facilities in areas identified pursuant to
subsection (a)(1), and to adopt and implement a pro-
gram for integrity management that reduces the risk
of an incident in those areas. The regulations shall be
issued no later than 1 year after the Secretary has
issued standards pursuant to subsections (a) and (b)
of this section or by December 31, 2003, whichever is
sooner.
‘‘(2) STANDARDS
FOR
PROGRAM.—In promul-
gating regulations under this section, the Secretary
shall require an operator’s integrity management
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plan to be based on risk analysis and each plan shall
include, at a minimum—
‘‘(A) periodic assessment of the integrity of
the pipeline through methods including internal
inspection, pressure testing, direct assessment, or
other effective methods. The assessment period
shall be no less than every 5 years unless the De-
partment of Transportation Inspector General,
after consultation with the Secretary determines
there is not a sufficient capability or it is
deemed unnecessary because of more technically
appropriate monitoring or creates undue inter-
ruption of necessary supply to fulfill the require-
ments under this paragraph;
‘‘(B) clearly defined criteria for evaluating
the results of the periodic assessment methods
carried out under subparagraph (A) and proce-
dures to ensure identified problems are corrected
in a timely manner; and
‘‘(C) measures, as appropriate, that prevent
and mitigate unintended releases, such as leak
detection, integrity evaluation, restrictive flow
devices, or other measures.
‘‘(3) CRITERIA FOR PROGRAM STANDARDS.—In
deciding how frequently the integrity assessment
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methods carried out under paragraph (2)(A) must be
conducted, an operator shall take into account the po-
tential for new defects developing or previously identi-
fied structural defects caused by construction or in-
stallation, the operational characteristics of the pipe-
line, and leak history. In addition, the Secretary may
establish a minimum testing requirement for opera-
tors of pipelines to conduct internal inspections.
‘‘(4) STATE ROLE.—A State authority that has
an agreement in effect with the Secretary under sec-
tion 60106 is authorized to review and assess an op-
erator’s risk analyses and integrity management
plans required under this section for interstate pipe-
lines located in that State. The reviewing State au-
thority shall provide the Secretary with a written as-
sessment of the plans, make recommendations, as ap-
propriate, to address safety concerns not adequately
addressed in the operator’s plans, and submit docu-
mentation explaining the State-proposed plan revi-
sions. The Secretary shall carefully consider the
State’s proposals and work in consultation with the
States and operators to address safety concerns.
‘‘(5) MONITORING IMPLEMENTATION.—The Sec-
retary of Transportation shall review the risk anal-
ysis and program for integrity management required
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under this section and provide for continued moni-
toring of such plans. Not later than 2 years after the
implementation of integrity management plans under
this section, the Secretary shall complete an assess-
ment and evaluation of the effects on safety and the
environment of extending all of the requirements
mandated by the regulations described in paragraph
(1) to additional areas. The Secretary shall submit
the assessment and evaluation to Congress along with
any recommendations to improve and expand the uti-
lization of integrity management plans.
‘‘(6) OPPORTUNITY FOR LOCAL INPUT ON INTEG-
RITY MANAGEMENT.—Within 18 months after the date
of enactment of the Pipeline Safety Improvement Act
of 2002, the Secretary shall, by regulation, establish
a process for raising and addressing local safety con-
cerns about pipeline integrity and the operator’s pipe-
line integrity plan. The process shall include—
‘‘(A) a requirement that an operator of a
hazardous liquid or natural gas transmission
pipeline facility provide information about the
risk analysis and integrity management plan re-
quired under this section to local officials in a
State in which the facility is located;
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‘‘(B) a description of the local officials re-
quired to be informed, the information that is to
be provided to them and the manner, which may
include traditional or electronic means, in which
it is provided;
‘‘(C) the means for receiving input from the
local officials that may include a public forum
sponsored by the Secretary or by the State, or
the submission of written comments through tra-
ditional or electronic means;
‘‘(D) the extent to which an operator of a
pipeline facility must participate in a public
forum sponsored by the Secretary or in another
means for receiving input from the local officials
or in the evaluation of that input; and
‘‘(E) the manner in which the Secretary
will notify the local officials about how their con-
cerns are being addressed.’’.
SEC. 765. ENFORCEMENT.
(a) IN GENERAL.—Section 60112 is amended—
(1) by striking subsection (a) and inserting the
following:
‘‘(a) GENERAL AUTHORITY.—After notice and an op-
portunity for a hearing, the Secretary of Transportation
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may decide a pipeline facility is hazardous if the Secretary
decides that—
‘‘(1) operation of the facility is or would be haz-
ardous to life, property, or the environment; or
‘‘(2) the facility is, or would be, constructed or
operated, or a component of the facility is, or would
be, constructed or operated with equipment, material,
or a technique that the Secretary decides is hazardous
to life, property, or the environment.’’; and
(2) by striking ‘‘is hazardous,’’ in subsection (d)
and inserting ‘‘is, or would be, hazardous,’’.
SEC. 766. PUBLIC EDUCATION, EMERGENCY PREPARED-
NESS, AND COMMUNITY RIGHT-TO-KNOW.
(a) Section 60116 is amended to read as follows:
‘‘§ 60116. Public education, emergency preparedness,
and community right-to-know
‘‘(a) PUBLIC
EDUCATION
PROGRAMS.—(1) Each
owner or operator of a gas or hazardous liquid pipeline fa-
cility shall carry out a continuing program to educate the
public on the use of a one-call notification system prior to
excavation and other damage prevention activities, the pos-
sible hazards associated with unintended releases from the
pipeline facility, the physical indications that such a re-
lease may have occurred, what steps should be taken for
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public safety in the event of a pipeline release, and how
to report such an event.
‘‘(2) Within 12 months after the date of enactment of
the Pipeline Safety Improvement Act of 2002, each owner
or operator of a gas or hazardous liquid pipeline facility
shall review its existing public education program for effec-
tiveness and modify the program as necessary. The com-
pleted program shall include activities to advise affected
municipalities, school districts, businesses, and residents of
pipeline facility locations. The completed program shall be
submitted to the Secretary or, in the case of an intrastate
pipeline facility operator, the appropriate State agency and
shall be periodically reviewed by the Secretary or, in the
case of an intrastate pipeline facility operator, the appro-
priate State agency.
‘‘(3) The Secretary may issue standards prescribing
the elements of an effective public education program. The
Secretary may also develop material for use in the program.
‘‘(b) EMERGENCY PREPAREDNESS.—
‘‘(1) OPERATOR
LIAISON.—Within 12 months
after the date of enactment of the Pipeline Safety Im-
provement Act of 2002, an operator of a gas trans-
mission or hazardous liquid pipeline facility shall
initiate and maintain liaison with the State emer-
gency response commissions, and local emergency
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planning committees in the areas of pipeline right-of-
way, established under section 301 of the Emergency
Planning and Community Right-To-Know Act of
1986 (42 U.S.C. 11001) in each State in which it op-
erates.
‘‘(2) INFORMATION.—An operator shall, upon re-
quest, make available to the State emergency response
commissions and local emergency planning commit-
tees, and shall make available to the Office of Pipeline
Safety in a standardized form for the purpose of pro-
viding the information to the public, the information
described in section 60102(d), the operator’s program
for integrity management, and information about im-
plementation of that program. The information about
the facility shall also include, at a minimum—
‘‘(A) the business name, address, telephone
number of the operator, including a 24-hour
emergency contact number;
‘‘(B) a description of the facility, including
pipe diameter, the product or products carried,
and the operating pressure;
‘‘(C) with respect to transmission pipeline
facilities, maps showing the location of the facil-
ity and, when available, any high consequence
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areas which the pipeline facility traverses or ad-
joins and abuts;
‘‘(D) a summary description of the integ-
rity measures the operator uses to assure safety
and protection for the environment; and
‘‘(E) a point of contact to respond to ques-
tions from emergency response representative.
‘‘(3) SMALLER COMMUNITIES.—In a community
without a local emergency planning committee, the
operator shall maintain liaison with the local fire,
police, and other emergency response agencies.
‘‘(4) PUBLIC ACCESS.—The Secretary shall pre-
scribe requirements for public access, as appropriate,
to this information, including a requirement that the
information be made available to the public by widely
accessible computerized database.
‘‘(c) COMMUNITY RIGHT-TO-KNOW.—Not later than 12
months after the date of enactment of the Pipeline Safety
Improvement Act of 2002, and annually thereafter, the
owner or operator of each gas transmission or hazardous
liquid pipeline facility shall provide to the governing body
of each municipality in which the pipeline facility is lo-
cated, a map identifying the location of such facility. The
map may be provided in electronic form. The Secretary
may provide technical assistance to the pipeline industry
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on developing public safety and public education program
content and best practices for program delivery, and on
evaluating the effectiveness of the programs. The Secretary
may also provide technical assistance to State and local of-
ficials in applying practices developed in these programs
to their activities to promote pipeline safety.
‘‘(d) PUBLIC AVAILABILITY OF REPORTS.—The Sec-
retary shall—
‘‘(1) make available to the public—
‘‘(A) a safety-related condition report filed
by an operator under section 60102(h);
‘‘(B) a report of a pipeline incident filed by
an operator;
‘‘(C) the results of any inspection by the Of-
fice of Pipeline Safety or a State regulatory offi-
cial; and
‘‘(D) a description of any corrective action
taken in response to a safety-related condition
reported under subparagraph (A), (B), or (C);
and
‘‘(2) prescribe requirements for public access, as
appropriate, to integrity management program infor-
mation prepared under this chapter, including re-
quirements that will ensure data accessibility to the
greatest extent feasible.’’.
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(b) 
SAFETY
CONDITION
REPORTS.—Section
60102(h)(2) is amended by striking ‘‘authorities.’’ and in-
serting ‘‘officials, including the local emergency respond-
ers.’’.
(c) CONFORMING AMENDMENT.—The chapter analysis
for chapter 601 is amended by striking the item relating
to section 60116 and inserting the following:
‘‘60116. Public education, emergency preparedness, community right-to-know.’’.
SEC. 767. PENALTIES.
(a) CIVIL PENALTIES.—Section 60122 is amended—
(1) by striking ‘‘$25,000’’ in subsection (a)(1)
and inserting ‘‘$500,000’’;
(2) by striking ‘‘$500,000’’ in subsection (a)(1)
and inserting ‘‘$1,000,000’’;
(3) by adding at the end of subsection (a)(1) the
following: ‘‘The preceding sentence does not apply to
judicial enforcement action under section 60120 or
60121.’’; and
(4) by striking subsection (b) and inserting the
following:
‘‘(b) PENALTY CONSIDERATIONS.—In determining the
amount of a civil penalty under this section—
‘‘(1) the Secretary shall consider—
‘‘(A) the nature, circumstances, and gravity
of the violation, including adverse impact on the
environment;
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‘‘(B) with respect to the violator, the degree
of culpability, any history of prior violations,
the ability to pay, any effect on ability to con-
tinue doing business; and
‘‘(C) good faith in attempting to comply;
and
‘‘(2) the Secretary may consider—
‘‘(A) the economic benefit gained from the
violation without any discount because of subse-
quent damages; and
‘‘(B) other matters that justice requires.’’.
(b) 
EXCAVATOR
DAMAGE.—Section 
60123(d) 
is
amended—
(1) by striking ‘‘knowingly and willfully’’;
(2) by inserting ‘‘knowingly and willfully’’ before
‘‘engages’’ in paragraph (1); and
(3) striking paragraph (2)(B) and inserting the
following:
‘‘(B) a pipeline facility, is aware of dam-
age, and does not report the damage promptly to
the operator of the pipeline facility and to other
appropriate authorities; or’’.
(c) CIVIL ACTIONS.—Section 60120(a)(1) is amended
to read as follows:
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‘‘(1) On the request of the Secretary of Transportation,
the Attorney General may bring a civil action in an appro-
priate district court of the United States to enforce this
chapter, including section 60112 of this chapter, or a regu-
lation prescribed or order issued under this chapter. The
court may award appropriate relief, including a temporary
or permanent injunction, punitive damages, and assessment
of civil penalties considering the same factors as prescribed
for the Secretary in an administrative case under section
60122.’’.
SEC. 768. STATE OVERSIGHT ROLE.
(a) STATE AGREEMENTS WITH CERTIFICATION.—Sec-
tion 60106 is amended—
(1) by striking ‘‘GENERAL AUTHORITY.—’’ in
subsection (a) and inserting ‘‘AGREEMENTS WITHOUT
CERTIFICATION.—’’;
(2) by redesignating subsections (b), (c), and (d)
as subsections (c), (d), and (e); and
(3) by inserting after subsection (a) the fol-
lowing:
‘‘(b) AGREEMENTS WITH CERTIFICATION.—
‘‘(1) IN GENERAL.—If the Secretary accepts a
certification under section 60105 of this title and
makes the determination required under this sub-
section, the Secretary may make an agreement with
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a State authority authorizing it to participate in the
oversight of interstate pipeline transportation. Each
such agreement shall include a plan for the State au-
thority to participate in special investigations involv-
ing incidents or new construction and allow the State
authority to participate in other activities overseeing
interstate pipeline transportation or to assume addi-
tional inspection or investigatory duties. Nothing in
this section modifies section 60104(c) or authorizes
the Secretary to delegate the enforcement of safety
standards prescribed under this chapter to a State
authority.
‘‘(2) DETERMINATIONS
REQUIRED.—The Sec-
retary may not enter into an agreement under this
subsection, unless the Secretary determines that—
‘‘(A) the agreement allowing participation
of the State authority is consistent with the Sec-
retary’s program for inspection and consistent
with the safety policies and provisions provided
under this chapter;
‘‘(B) the interstate participation agreement
would not adversely affect the oversight respon-
sibilities of intrastate pipeline transportation by
the State authority;
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‘‘(C) the State is carrying out a program
demonstrated to promote preparedness and risk
prevention activities that enable communities to
live safely with pipelines;
‘‘(D) the State meets the minimum stand-
ards for State one-call notification set forth in
chapter 61; and
‘‘(E) the actions planned under the agree-
ment would not impede interstate commerce or
jeopardize public safety.
‘‘(3) EXISTING
AGREEMENTS.—If requested by
the State authority, the Secretary shall authorize a
State authority which had an interstate agreement in
effect after January 1999, to oversee interstate pipe-
line transportation pursuant to the terms of that
agreement until the Secretary determines that the
State meets the requirements of paragraph (2) and
executes a new agreement, or until December 31,
2003, whichever is sooner. Nothing in this paragraph
shall prevent the Secretary, after affording the State
notice, hearing, and an opportunity to correct any al-
leged deficiencies, from terminating an agreement
that was in effect before enactment of the Pipeline
Safety Improvement Act of 2002 if—
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‘‘(A) the State authority fails to comply
with the terms of the agreement;
‘‘(B) implementation of the agreement has
resulted in a gap in the oversight responsibilities
of intrastate pipeline transportation by the State
authority; or
‘‘(C) continued participation by the State
authority in the oversight of interstate pipeline
transportation has had an adverse impact on
pipeline safety.’’.
(b) ENDING AGREEMENTS.—Subsection (e) of section
60106, as redesignated by subsection (a), is amended to read
as follows:
‘‘(e) ENDING AGREEMENTS.—
‘‘(1) PERMISSIVE TERMINATION.—The Secretary
may end an agreement under this section when the
Secretary finds that the State authority has not com-
plied with any provision of the agreement.
‘‘(2) MANDATORY
TERMINATION
OF
AGREE-
MENT.—The Secretary shall end an agreement for the
oversight of interstate pipeline transportation if the
Secretary finds that—
‘‘(A) implementation of such agreement has
resulted in a gap in the oversight responsibilities
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of intrastate pipeline transportation by the State
authority;
‘‘(B) the State actions under the agreement
have failed to meet the requirements under sub-
section (b); or
‘‘(C) continued participation by the State
authority in the oversight of interstate pipeline
transportation would not promote pipeline safe-
ty.
‘‘(3) PROCEDURAL
REQUIREMENTS.—The Sec-
retary shall give the notice and an opportunity for a
hearing to a State authority before ending an agree-
ment under this section. The Secretary may provide
a State an opportunity to correct any deficiencies be-
fore ending an agreement. The finding and decision
to end the agreement shall be published in the Federal
Register and may not become effective for at least 15
days after the date of publication unless the Secretary
finds that continuation of an agreement poses an im-
minent hazard.’’.
SEC. 769. IMPROVED DATA AND DATA AVAILABILITY.
(a) IN GENERAL.—Within 12 months after the date
of enactment of this Act, the Secretary shall develop and
implement a comprehensive plan for the collection and use
of gas and hazardous liquid pipeline data to revise the caus-
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al categories on the incident report forms to eliminate over-
lapping and confusing categories and include subcategories.
The plan shall include components to provide the capability
to perform sound incident trend analysis and evaluations
of pipeline operator performance using normalized accident
data.
(b) REPORT OF RELEASES EXCEEDING 5 GALLONS.—
Section 60117(b) is amended—
(1) by inserting ‘‘(1)’’ before ‘‘To’’;
(2) redesignating paragraphs (1) and (2) as sub-
paragraphs (A) and (B);
(3) inserting before the last sentence the fol-
lowing:
‘‘(2) A person owning or operating a hazardous liquid
pipeline facility shall report to the Secretary each release
to the environment greater than 5 gallons of the hazardous
liquid or carbon dioxide transported. This section applies
to releases from pipeline facilities regulated under this
chapter. A report must include the location of the release,
fatalities and personal injuries, type of product, amount
of product release, cause or causes of the release, extent of
damage to property and the environment, and the response
undertaken to clean up the release.
‘‘(3) During the course of an incident investigation,
a person owning or operating a pipeline facility shall make
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records, reports, and information required under subsection
(a) of this section or other reasonably described records, re-
ports, and information relevant to the incident investiga-
tion, available to the Secretary within the time limits pre-
scribed in a written request.’’; and
(4) indenting the first word of the last sentence
and inserting ‘‘(4)’’ before ‘‘The Secretary’’ in that
sentence.
(c) PENALTY AUTHORITIES.—(1) Section 60122(a) is
amended 
by 
striking 
‘‘60114(c)’’ 
and 
inserting
‘‘60117(b)(3)’’.
(2) Section 60123(a) is amended by striking
‘‘60114(c),’’ and inserting ‘‘60117(b)(3),’’.
(d) ESTABLISHMENT
OF NATIONAL DEPOSITORY.—
Section 60117 is amended by adding at the end the fol-
lowing:
‘‘(l) NATIONAL DEPOSITORY.—The Secretary shall es-
tablish a national depository of data on events and condi-
tions, including spill histories and corrective actions for
specific incidents, that can be used to evaluate the risk of,
and to prevent, pipeline failures and releases. The Secretary
shall administer the program through the Bureau of Trans-
portation Statistics, in cooperation with the Research and
Special Programs Administration, and shall make such in-
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formation available for use by State and local planning and
emergency response authorities and the public.’’.
SEC. 770. RESEARCH AND DEVELOPMENT.
(a) INNOVATIVE TECHNOLOGY DEVELOPMENT.—
(1) IN GENERAL.—As part of the Department of
Transportation’s research and development program,
the Secretary of Transportation shall direct research
attention 
to 
the 
development 
of 
alternative
technologies—
(A) to expand the capabilities of internal
inspection devices to identify and accurately
measure defects and anomalies;
(B) to inspect pipelines that cannot accom-
modate internal inspection devices available on
the date of enactment;
(C) to develop innovative techniques meas-
uring the structural integrity of pipelines;
(D) to improve the capability, reliability,
and practicality of external leak detection de-
vices; and
(E) to develop and improve alternative tech-
nologies to identify and monitor outside force
damage to pipelines.
(2) COOPERATIVE.—The Secretary may partici-
pate in additional technological development through
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cooperative agreements with trade associations, aca-
demic institutions, or other qualified organizations.
(b) PIPELINE SAFETY AND RELIABILITY RESEARCH
AND DEVELOPMENT.—
(1) IN GENERAL.—The Secretary of Transpor-
tation, in coordination with the Secretary of Energy,
shall develop and implement an accelerated coopera-
tive program of research and development to ensure
the integrity of natural gas and hazardous liquid
pipelines. This research and development program—
(A) shall include materials inspection tech-
niques, risk assessment methodology, and infor-
mation systems surety; and
(B) shall complement, and not replace, the
research program of the Department of Energy
addressing natural gas pipeline issues existing
on the date of enactment of this Act.
(2) PURPOSE.—The purpose of the cooperative
research program shall be to promote pipeline safety
research and development to—
(A) ensure long-term safety, reliability and
service life for existing pipelines;
(B) expand capabilities of internal inspec-
tion devices to identify and accurately measure
defects and anomalies;
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(C) develop inspection techniques for pipe-
lines that cannot accommodate the internal in-
spection devices available on the date of enact-
ment;
(D) develop innovative techniques to meas-
ure the structural integrity of pipelines to pre-
vent pipeline failures;
(E) develop improved materials and coat-
ings for use in pipelines;
(F) improve the capability, reliability, and
practicality of external leak detection devices;
(G) identify underground environments that
might lead to shortened service life;
(H) enhance safety in pipeline siting and
land use;
(I) minimize the environmental impact of
pipelines;
(J) demonstrate technologies that improve
pipeline safety, reliability, and integrity;
(K) provide risk assessment tools for opti-
mizing risk mitigation strategies; and
(L) provide highly secure information sys-
tems for controlling the operation of pipelines.
(3) AREAS.—In carrying out this subsection, the
Secretary of Transportation, in coordination with the
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Secretary of Energy, shall consider research and de-
velopment on natural gas, crude oil and petroleum
product pipelines for—
(A) early crack, defect, and damage detec-
tion, including real-time damage monitoring;
(B) automated internal pipeline inspection
sensor systems;
(C) land use guidance and set back manage-
ment along pipeline rights-of-way for commu-
nities;
(D) internal corrosion control;
(E) corrosion-resistant coatings;
(F) improved cathodic protection;
(G) inspection techniques where internal in-
spection is not feasible, including measurement
of structural integrity;
(H) external leak detection, including port-
able real-time video imaging technology, and the
advancement of computerized control center leak
detection systems utilizing real-time remote field
data input;
(I) longer life, high strength, non-corrosive
pipeline materials;
(J) assessing the remaining strength of ex-
isting pipes;
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(K) risk and reliability analysis models, to
be used to identify safety improvements that
could be realized in the near term resulting from
analysis of data obtained from a pipeline per-
formance tracking initiative;
(L) identification, monitoring, and preven-
tion of outside force damage, including satellite
surveillance; and
(M) any other areas necessary to ensuring
the public safety and protecting the environment.
(4) POINTS OF CONTACT.—
(A) IN GENERAL.—To coordinate and im-
plement the research and development programs
and activities authorized under this subsection—
(i) the Secretary of Transportation
shall designate, as the point of contact for
the Department of Transportation, an offi-
cer of the Department of Transportation
who has been appointed by the President
and confirmed by the Senate; and
(ii) the Secretary of Energy shall des-
ignate, as the point of contact for the De-
partment of Energy, an officer of the De-
partment of Energy who has been appointed
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by the President and confirmed by the Sen-
ate.
(B) DUTIES.—
(i) The point of contact for the Depart-
ment of Transportation shall have the pri-
mary responsibility for coordinating and
overseeing the implementation of the re-
search, development, and demonstration
program plan under paragraphs (5) and
(6).
(ii) The points of contact shall jointly
assist in arranging cooperative agreements
for research, development and demonstra-
tion involving their respective Departments,
national laboratories, universities, and in-
dustry research organizations.
(5) RESEARCH
AND
DEVELOPMENT
PROGRAM
PLAN.—Within 240 days after the date of enactment
of this Act, the Secretary of Transportation, in co-
ordination with the Secretary of Energy and the
Pipeline Integrity Technical Advisory Committee,
shall prepare and submit to the Congress a 5-year
program plan to guide activities under this sub-
section. In preparing the program plan, the Secretary
shall consult with appropriate representatives of the
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natural gas, crude oil, and petroleum product pipe-
line industries to select and prioritize appropriate
project proposals. The Secretary may also seek the ad-
vice of utilities, manufacturers, institutions of higher
learning, Federal agencies, the pipeline research insti-
tutions, national laboratories, State pipeline safety
officials, environmental organizations, pipeline safety
advocates, and professional and technical societies.
(6) IMPLEMENTATION.—The Secretary of Trans-
portation shall have primary responsibility for ensur-
ing the 5-year plan provided for in paragraph (5) is
implemented as intended. In carrying out the re-
search, development, and demonstration activities
under this paragraph, the Secretary of Transpor-
tation and the Secretary of Energy may use, to the
extent authorized under applicable provisions of law,
contracts, cooperative agreements, cooperative research
and development agreements under the Stevenson-
Wydler Technology Innovation Act of 1980 (15 U.S.C.
3701 et seq.), grants, joint ventures, other trans-
actions, and any other form of agreement available to
the Secretary consistent with the recommendations of
the Advisory Committee.
(7) REPORTS TO CONGRESS.—The Secretary of
Transportation shall report to the Congress annually
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as to the status and results to date of the implementa-
tion of the research and development program plan.
The report shall include the activities of the Depart-
ments of Transportation and Energy, the national
laboratories, universities, and any other research or-
ganizations, including industry research organiza-
tions.
SEC. 771. PIPELINE INTEGRITY TECHNICAL ADVISORY COM-
MITTEE.
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall enter into appropriate arrangements with the
National Academy of Sciences to establish and manage the
Pipeline Integrity Technical Advisory Committee for the
purpose of advising the Secretary of Transportation and
the Secretary of Energy on the development and implemen-
tation of the 5-year research, development, and demonstra-
tion program plan under section 770(b)(5). The Advisory
Committee shall have an ongoing role in evaluating the
progress and results of the research, development, and dem-
onstration carried out under that section.
(b) MEMBERSHIP.—The National Academy of Sciences
shall appoint the members of the Pipeline Integrity Tech-
nical Advisory Committee after consultation with the Sec-
retary of Transportation and the Secretary of Energy.
Members appointed to the Advisory Committee should have
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the necessary qualifications to provide technical contribu-
tions to the purposes of the Advisory Committee.
SEC. 772. AUTHORIZATION OF APPROPRIATIONS.
(a) 
GAS
AND
HAZARDOUS
LIQUIDS.—Section
60125(a) is amended to read as follows:
‘‘(a) GAS AND HAZARDOUS LIQUID.—To carry out
this chapter and other pipeline-related damage prevention
activities of this title (except for section 60107), there are
authorized to be appropriated to the Department of Trans-
portation—$30,000,000 for each of the fiscal years 2003,
2004, and 2005 of which $23,000,000 is to be derived from
user fees for fiscal years 2003, 2004, and 2005 collected
under section 60301 of this title.’’.
(b) GRANTS TO STATES.—Section 60125(c) is amended
to read as follows:
‘‘(c) STATE GRANTS.—Not more than the following
amounts may be appropriated to the Secretary to carry out
section 60107—$20,000,000 for the fiscal years 2003, 2004,
and 2005 of which $18,000,000 is to be derived from user
fees for fiscal years 2003, 2004, and 2005 collected under
section 60301 of this title.’’.
(c) OIL SPILLS.—Section 60125 is amended by redes-
ignating subsections (d), (e), and (f) as subsections (e), (f),
(g) and inserting after subsection (c) the following:
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‘‘(d) OIL SPILL LIABILITY TRUST FUND.—Of the
amounts available in the Oil Spill Liability Trust Fund,
$8,000,000 shall be transferred to the Secretary of Trans-
portation, as provided in appropriation Acts, to carry out
programs authorized in this title for each of fiscal years
2003, 2004, and 2005.’’.
(d) PIPELINE INTEGRITY PROGRAM.—(1) There are
authorized to be appropriated to the Secretary of Transpor-
tation for carrying out sections 770(b) and 771 of this sub-
title $3,000,000, to be derived from user fees under section
60301 of title 49, United States Code, for each of the fiscal
years 2003 through 2007.
(2) Of the amounts available in the Oil Spill Liability
Trust Fund established by section 9509 of the Internal Rev-
enue Code of 1986 (26 U.S.C. 9509), $3,000,000 shall be
transferred to the Secretary of Transportation, as provided
in appropriation Acts, to carry out programs for detection,
prevention and mitigation of oil spills under sections 770(b)
and 771 of this subtitle for each of the fiscal years 2003
through 2007.
(3) There are authorized to be appropriated to the Sec-
retary of Energy for carrying out sections 770(b) and 771
of this subtitle such sums as may be necessary for each of
the fiscal years 2003 through 2007.
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SEC. 773. OPERATOR ASSISTANCE IN INVESTIGATIONS.
(a) IN GENERAL.—If the Department of Transpor-
tation or the National Transportation Safety Board inves-
tigate an accident, the operator involved shall make avail-
able to the representative of the Department or the Board
all records and information that in any way pertain to
the accident (including integrity management plans and
test results), and shall afford all reasonable assistance in
the investigation of the accident.
(b) CORRECTIVE ACTION ORDERS.—Section 60112(d)
is amended—
(1) by inserting ‘‘(1)’’ after ‘‘CORRECTIVE AC-
TION ORDERS.—’’; and
(2) by adding at the end the following:
‘‘(2) If, in the case of a corrective action order issued
following an accident, the Secretary determines that the ac-
tions of an employee carrying out an activity regulated
under this chapter, including duties under section 60102(a),
may have contributed substantially to the cause of the acci-
dent, the Secretary shall direct the operator to relieve the
employee from performing those activities, reassign the em-
ployee, or place the employee on leave until the earlier of
the date on which—
‘‘(A) the Secretary determines, after notice and
an opportunity for a hearing, that the employee’s per-
formance of duty in carrying out the activity did not
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contribute substantially to the cause of the accident;
or
‘‘(B) the Secretary determines the employee has
been re-qualified or re-trained as provided for in sec-
tion 763 of the Pipeline Safety Improvement Act of
2002 and can safely perform those activities.
‘‘(3) Action taken by an operator under paragraph (2)
shall be in accordance with the terms and conditions of any
applicable collective bargaining agreement to the extent it
is not inconsistent with the requirements of this section.’’.
SEC. 774. PROTECTION OF EMPLOYEES PROVIDING PIPE-
LINE SAFETY INFORMATION.
(a) IN GENERAL.—Chapter 601 is amended by adding
at the end the following:
‘‘§ 60129. Protection of employees providing pipeline
safety information
‘‘(a) DISCRIMINATION AGAINST PIPELINE EMPLOY-
EES.—No pipeline operator or contractor or subcontractor
of a pipeline may discharge an employee or otherwise dis-
criminate against an employee with respect to compensa-
tion, terms, conditions, or privileges of employment because
the employee (or any person acting pursuant to a request
of the employee)—
‘‘(1) provided, caused to be provided, or is about
to provide (with any knowledge of the employer) or
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cause to be provided to the employer or Federal Gov-
ernment information relating to any violation or al-
leged violation of any order, regulation, or standard
of the Research and Special Programs Administration
or any other provision of Federal law relating to
pipeline safety under this chapter or any other law
of the United States;
‘‘(2) has filed, caused to be filed, or is about to
file (with any knowledge of the employer) or cause to
be filed a proceeding relating to any violation or al-
leged violation of any order, regulation, or standard
of the Administration or any other provision of Fed-
eral law relating to pipeline safety under this chapter
or any other law of the United States;
‘‘(3) testified or is about to testify in such a pro-
ceeding; or
‘‘(4) assisted or participated or is about to assist
or participate in such a proceeding.
‘‘(b) DEPARTMENT
OF LABOR COMPLAINT PROCE-
DURE.—
‘‘(1) FILING AND NOTIFICATION.—A person who
believes that he or she has been discharged or other-
wise discriminated against by any person in viola-
tion of subsection (a) may, not later than 90 days
after the date on which such violation occurs, file (or
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have any person file on his or her behalf) a complaint
with the Secretary of Labor alleging such discharge or
discrimination. Upon receipt of such a complaint, the
Secretary of Labor shall notify, in writing, the person
named in the complaint and the Administrator of the
Research and Special Programs Administration of the
filing of the complaint, of the allegations contained in
the complaint, of the substance of evidence supporting
the complaint, and of the opportunities that will be
afforded to such person under paragraph (2).
‘‘(2) INVESTIGATION; PRELIMINARY ORDER.—
‘‘(A) IN GENERAL.—Not later than 60 days
after the date of receipt of a complaint filed
under paragraph (1) and after affording the per-
son named in the complaint an opportunity to
submit to the Secretary of Labor a written re-
sponse to the complaint and an opportunity to
meet with a representative of the Secretary to
present statements from witnesses, the Secretary
of Labor shall conduct an investigation and de-
termine whether there is reasonable cause to be-
lieve that the complaint has merit and notify in
writing the complainant and the person alleged
to have committed a violation of subsection (a)
of the Secretary’s findings. If the Secretary of
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Labor concludes that there is reasonable cause to
believe that a violation of subsection (a) has oc-
curred, the Secretary shall accompany the Sec-
retary’s findings with a preliminary order pro-
viding the relief prescribed by paragraph (3)(B).
Not later than 30 days after the date of notifica-
tion of findings under this paragraph, either the
person alleged to have committed the violation or
the complainant may file objections to the find-
ings or preliminary order, or both, and request
a hearing on the record. The filing of such objec-
tions shall not operate to stay any reinstatement
remedy contained in the preliminary order. Such
hearings shall be conducted expeditiously. If a
hearing is not requested in such 30-day period,
the preliminary order shall be deemed a final
order that is not subject to judicial review.
‘‘(B) REQUIREMENTS.—
‘‘(i) REQUIRED
SHOWING
BY
COM-
PLAINANT.—The Secretary of Labor shall
dismiss a complaint filed under this sub-
section and shall not conduct an investiga-
tion otherwise required under subparagraph
(A) unless the complainant makes a prima
facie showing that any behavior described
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in paragraphs (1) through (4) of subsection
(a) was a contributing factor in the unfa-
vorable personnel action alleged in the com-
plaint.
‘‘(ii) SHOWING
BY
EMPLOYER.—Not-
withstanding a finding by the Secretary
that the complainant has made the showing
required under clause (i), no investigation
otherwise required under subparagraph (A)
shall be conducted if the employer dem-
onstrates, by clear and convincing evidence,
that the employer would have taken the
same unfavorable personnel action in the
absence of that behavior.
‘‘(iii) CRITERIA FOR DETERMINATION
BY SECRETARY.—The Secretary may deter-
mine that a violation of subsection (a) has
occurred only if the complainant dem-
onstrates that any behavior described in
paragraphs (1) through (4) of subsection (a)
was a contributing factor in the unfavorable
personnel action alleged in the complaint.
‘‘(iv) PROHIBITION.—Relief may not
be ordered under subparagraph (A) if the
employer demonstrates by clear and con-
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vincing evidence that the employer would
have taken the same unfavorable personnel
action in the absence of that behavior.
‘‘(3) FINAL ORDER.—
‘‘(A) DEADLINE
FOR
ISSUANCE; SETTLE-
MENT AGREEMENTS.—Not later than 120 days
after the date of conclusion of a hearing under
paragraph (2), the Secretary of Labor shall issue
a final order providing the relief prescribed by
this paragraph or denying the complaint. At any
time before issuance of a final order, a pro-
ceeding under this subsection may be terminated
on the basis of a settlement agreement entered
into by the Secretary of Labor, the complainant,
and the person alleged to have committed the
violation.
‘‘(B) REMEDY.—If, in response to a com-
plaint filed under paragraph (1), the Secretary
of Labor determines that a violation of sub-
section (a) has occurred, the Secretary of Labor
shall order the person who committed such viola-
tion to—
‘‘(i) take affirmative action to abate
the violation;
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‘‘(ii) reinstate the complainant to his
or her former position together with the
compensation (including back pay) and re-
store the terms, conditions, and privileges
associated with his or her employment; and
‘‘(iii) provide compensatory damages
to the complainant.
If such an order is issued under this paragraph,
the Secretary of Labor, at the request of the com-
plainant, shall assess against the person whom
the order is issued a sum equal to the aggregate
amount of all costs and expenses (including at-
torney’s and expert witness fees) reasonably in-
curred, as determined by the Secretary of Labor,
by the complainant for, or in connection with,
the bringing the complaint upon which the order
was issued.
‘‘(C) FRIVOLOUS COMPLAINTS.—If the Sec-
retary of Labor finds that a complaint under
paragraph (1) is frivolous or has been brought in
bad faith, the Secretary of Labor may award to
the prevailing employer a reasonable attorney’s
fee not exceeding $1,000.
‘‘(4) REVIEW.—
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‘‘(A) APPEAL TO COURT OF APPEALS.—Any
person adversely affected or aggrieved by an
order issued under paragraph (3) may obtain re-
view of the order in the United States Court of
Appeals for the circuit in which the violation,
with respect to which the order was issued, alleg-
edly occurred or the circuit in which the com-
plainant resided on the date of such violation.
The petition for review must be filed not later
than 60 days after the date of issuance of the
final order of the Secretary of Labor. Review
shall conform to chapter 7 of title 5, United
States Code. The commencement of proceedings
under this subparagraph shall not, unless or-
dered by the court, operate as a stay of the order.
‘‘(B) LIMITATION
ON
COLLATERAL
AT-
TACK.—An order of the Secretary of Labor with
respect to which review could have been obtained
under subparagraph (A) shall not be subject to
judicial review in any criminal or other civil
proceeding.
‘‘(5) ENFORCEMENT OF ORDER BY SECRETARY
OF LABOR.—Whenever any person has failed to com-
ply with an order issued under paragraph (3), the
Secretary of Labor may file a civil action in the
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United States district court for the district in which
the violation was found to occur to enforce such order.
In actions brought under this paragraph, the district
courts shall have jurisdiction to grant all appropriate
relief, including, but not to be limited to, injunctive
relief and compensatory damages.
‘‘(6) ENFORCEMENT OF ORDER BY PARTIES.—
‘‘(A) COMMENCEMENT OF ACTION.—A per-
son on whose behalf an order was issued under
paragraph (3) may commence a civil action
against the person to whom such order was
issued to require compliance with such order.
The appropriate United States district court
shall have jurisdiction, without regard to the
amount in controversy or the citizenship of the
parties, to enforce such order.
‘‘(B) ATTORNEY
FEES.—The court, in
issuing any final order under this paragraph,
may award costs of litigation (including reason-
able attorney and expert witness fees) to any
party whenever the court determines such award
costs is appropriate.
‘‘(c) MANDAMUS.—Any nondiscretionary duty im-
posed by this section shall be enforceable in a mandamus
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proceeding brought under section 1361 of title 28, United
States Code.
‘‘(d) NONAPPLICABILITY
TO
DELIBERATE
VIOLA-
TIONS.—Subsection (a) shall not apply with respect to an
employee of a pipeline, contractor or subcontractor who,
acting without direction from the pipeline contractor or
subcontractor (or such person’s agent), deliberately causes
a violation of any requirement relating to pipeline safety
under this chapter or any other law of the United States.
‘‘(e) CONTRACTOR DEFINED.—In this section, the term
‘contractor’ means a company that performs safety-sensitive
functions by contract for a pipeline.’’.
(b) CIVIL PENALTY.—Section 60122(a) is amended by
adding at the end the following:
‘‘(3) A person violating section 60129, or an order
issued thereunder, is liable to the Government for a civil
penalty of not more than $1,000 for each violation. The
penalties provided by paragraph (1) do not apply to a vio-
lation of section 60129 or an order issued thereunder.’’.
(c) CONFORMING AMENDMENT.—The chapter analysis
for chapter 601 is amended by adding at the end the fol-
lowing:
‘‘60129. Protection of employees providing pipeline safety information.’’.
SEC. 775. STATE PIPELINE SAFETY ADVISORY COMMITTEES.
Within 90 days after receiving recommendations for
improvements to pipeline safety from an advisory com-
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mittee appointed by the Governor of any State, the Sec-
retary of Transportation shall respond in writing to the
committee setting forth what action, if any, the Secretary
will take on those recommendations and the Secretary’s rea-
sons for acting or not acting upon any of the recommenda-
tions.
SEC. 776. FINES AND PENALTIES.
The Inspector General of the Department of Transpor-
tation shall conduct an analysis of the Department’s assess-
ment of fines and penalties on gas transmission and haz-
ardous liquid pipelines, including the cost of corrective ac-
tions required by the Department in lieu of fines, and, no
later than 6 months after the date of enactment of this Act,
shall provide a report to the Senate Committee on Com-
merce, Science, and Transportation and the House Com-
mittee on Transportation and Infrastructure on any find-
ings and recommendations for actions by the Secretary or
Congress to ensure the fines assessed are an effective deter-
rent for reducing safety risks.
SEC. 777. STUDY OF RIGHTS-OF-WAY.
The Secretary of Transportation is authorized to con-
duct a study on how best to preserve environmental re-
sources in conjunction with maintaining pipeline rights-
of-way. The study shall recognize pipeline operators’ regu-
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latory obligations to maintain rights-of-way and to protect
public safety.
SEC. 778. STUDY OF NATURAL GAS RESERVE.
(a) FINDINGS.—Congress finds that:
(1) In the last few months, natural gas prices
across the country have tripled.
(2) In California, natural gas prices have in-
creased twenty-fold, from $3 per million British ther-
mal units to nearly $60 per million British thermal
units.
(3) One of the major causes of these price in-
creases is a lack of supply, including a lack of nat-
ural gas reserves.
(4) The lack of a reserve was compounded by the
rupture of an El Paso Natural Gas Company pipe-
line in Carlsbad, New Mexico on August 1, 2000.
(5) Improving pipeline safety will help prevent
similar accidents that interrupt the supply of natural
gas and will help save lives.
(6) It is also necessary to find solutions for the
lack of natural gas reserves that could be used during
emergencies.
(b) 
STUDY
BY
THE
NATIONAL
ACADEMY
OF
SCIENCES.—The Secretary of Energy shall request the Na-
tional Academy of Sciences to—
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(1) conduct a study to—
(A) determine the causes of recent increases
in the price of natural gas, including whether
the increases have been caused by problems with
the supply of natural gas or by problems with
the natural gas transmission system;
(B) identify any Federal or State policies
that may have contributed to the price increases;
and
(C) determine what Federal action would be
necessary to improve the reserve supply of nat-
ural gas for use in situations of natural gas
shortages and price increases, including deter-
mining the feasibility and advisability of a Fed-
eral strategic natural gas reserve system; and
(2) not later than 60 days after the date of en-
actment of this Act, submit to Congress a report on
the results of the study.
SEC. 779. STUDY AND REPORT ON NATURAL GAS PIPELINE
AND STORAGE FACILITIES IN NEW ENGLAND.
(a) STUDY.—The Federal Energy Regulatory Commis-
sion, in consultation with the Department of Energy, shall
conduct a study on the natural gas pipeline transmission
network in New England and natural gas storage facilities
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associated with that network. In carrying out the study,
the Commission shall consider—
(1) the ability of natural gas pipeline and stor-
age facilities in New England to meet current and
projected demand by gas-fired power generation
plants and other consumers;
(2) capacity constraints during unusual weather
periods;
(3) potential constraint points in regional, inter-
state, and international pipeline capacity serving
New England; and
(4) the quality and efficiency of the Federal envi-
ronmental review and permitting process for natural
gas pipelines.
(b) REPORT.—Not later than 120 days after the date
of the enactment of this Act, the Federal Energy Regulatory
Commission shall prepare and submit to the Senate Com-
mittee on Energy and Natural Resources and the appro-
priate committee of the House of Representatives a report
containing the results of the study conducted under sub-
section (a), including recommendations for addressing po-
tential natural gas transmission and storage capacity prob-
lems in New England.
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PART III—PIPELINE SECURITY SENSITIVE
INFORMATION
SEC. 781. MEETING COMMUNITY RIGHT TO KNOW WITHOUT
SECURITY RISKS.
Section 60117 is amended by adding at the end the
following:
‘‘(l) WITHHOLDING CERTAIN INFORMATION.—
‘‘(1) IN GENERAL.—Notwithstanding any other
provision of this chapter requiring the Secretary to
provide information obtained by the Secretary or an
officer, employee, or agent in carrying out this chap-
ter to State or local government officials, the public,
or any other person, the Secretary shall withhold such
information if it is information that is described in
section 552(b)(1)(A) of title 5, United States Code.
‘‘(2) CONDITIONAL
RELEASE.—Notwithstanding
paragraph (1), upon the receipt of assurances satis-
factory to the Secretary that the information will be
handled appropriately, the Secretary may provide in-
formation permitted to be withheld under that
paragraph—
‘‘(A) to the owner or operator of the affected
pipeline system;
‘‘(B) to an officer, employee or agent of a
Federal, State, tribal, or local government, in-
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cluding a volunteer fire department, concerned
with carrying out this chapter, with protecting
the facilities, with protecting public safety, or
with national security issues;
‘‘(C) in an administrative or judicial pro-
ceeding brought under this chapter or an admin-
istrative or judicial proceeding that addresses
terrorist actions or threats of such actions; or
‘‘(D) to such other persons as the Secretary
determines necessary to protect public safety and
security.
‘‘(3) REPORT
TO
CONGRESS.—The Secretary
shall provide an annual report to the Congress, in ap-
propriate form as determined by the Secretary, con-
taining a summary of determinations made by the
Secretary during the preceding year to withhold in-
formation from release under paragraph (1).’’.
SEC. 782. TECHNICAL ASSISTANCE FOR SECURITY OF PIPE-
LINE FACILITIES.
The Secretary of Transportation may provide tech-
nical assistance to an operator of a pipeline facility or to
State, tribal, or local officials to prevent or respond to acts
of terrorism that may impact the pipeline facility,
including—
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(1) actions by the Secretary that support the use
of National Guard or State or Federal personnel to
provide additional security for a pipeline facility at
risk of terrorist attack or in response to such an at-
tack;
(2) use of resources available to the Secretary to
develop and implement security measures for a pipe-
line facility;
(3) identification of security issues with respect
to the operation of a pipeline facility; and
(4) the provision of information and guidance on
security practices that prevent damage to pipeline fa-
cilities from terrorist attacks.
SEC. 783. CRIMINAL PENALTIES FOR DAMAGING OR DE-
STROYING A FACILITY.
Section 60123(b) of title 49, United States Code, is
amended—
(1) by striking ‘‘or’’ after ‘‘gas pipeline facility’’
and inserting a comma; and
(2) by inserting after ‘‘liquid pipeline facility’’
the following: ‘‘, or either an intrastate gas pipeline
facility or an intrastate hazardous liquid pipeline fa-
cility that is used in interstate or foreign commerce
or in any activity affecting interstate or foreign com-
merce’’.
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DIVISION C—DIVERSIFYING EN-
ERGY DEMAND AND IMPROV-
ING EFFICIENCY
TITLE VIII—FUELS AND
VEHICLES
Subtitle A—CAFE Standards, Alter-
native 
Fuels, 
and 
Advanced
Technology
SEC. 801. INCREASED FUEL ECONOMY STANDARDS.
(a) REQUIREMENT FOR NEW REGULATIONS.—
(1) IN GENERAL.—The Secretary of Transpor-
tation shall issue, under section 32902 of title 49,
United States Code, new regulations setting forth in-
creased average fuel economy standards for auto-
mobiles that are determined on the basis of the max-
imum feasible average fuel economy levels for the
automobiles, taking into consideration the matters set
forth in subsection (f) of such section.
(2) TIME FOR ISSUING REGULATIONS.—
(A) NON-PASSENGER
AUTOMOBILES.—For
non-passenger automobiles, the Secretary of
Transportation shall issue the final regulations
not later than 15 months after the date of the en-
actment of this Act.
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(B) PASSENGER AUTOMOBILES.—For pas-
senger automobiles, the Secretary of Transpor-
tation shall issue—
(i) the proposed regulations not later
than 180 days after the date of the enact-
ment of this Act; and
(ii) the final regulations not later than
2 years after that date.
(b) PHASED INCREASES.—The regulations issued pur-
suant to subsection (a) shall specify standards that take ef-
fect successively over several vehicle model years not exceed-
ing 15 vehicle model years.
(c) CLARIFICATION OF AUTHORITY TO AMEND PAS-
SENGER AUTOMOBILE STANDARD.—Section 32902(b) of
title 49, United States Code, is amended by inserting before
the period at the end the following: ‘‘or such other number
as the Secretary prescribes under subsection (c)’’.
(d) ENVIRONMENTAL
ASSESSMENT.—When issuing
final regulations setting forth increased average fuel econ-
omy standards under this section, the Secretary of Trans-
portation shall also issue an environmental assessment of
the effects of the implementation of the increased standards
on the environment under the National Environmental Pol-
icy Act of 1969 (42 U.S.C. 4321 et seq.).
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(e) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Trans-
portation for fiscal year 2003, to remain available until
expended, $2,000,000 to carry out this section.
SEC. 802. EXPEDITED PROCEDURES FOR CONGRESSIONAL
INCREASE IN FUEL ECONOMY STANDARDS.
(a) CONDITION FOR APPLICABILITY.—If the Secretary
of Transportation fails to issue final regulations with re-
spect to non-passenger automobiles under section 801, or
fails to issue final regulations with respect to passenger
automobiles under such section, on or before the date by
which such final regulations are required by such section
to be issued, respectively, then this section shall apply with
respect to a bill described in subsection (b).
(b) BILL.—A bill referred to in this subsection is a
bill that satisfies the following requirements:
(1) INTRODUCTION.—The bill is introduced by
one or more Members of Congress not later than 60
days after the date referred to in subsection (a).
(2) TITLE.—The title of the bill is as follows: ‘‘A
bill to establish new average fuel economy standards
for certain motor vehicles.’’.
(3) TEXT.—The bill provides after the enacting
clause only the text specified in subparagraph (A) or
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(B) or any provision described in subparagraph (C),
as follows:
(A) NON-PASSENGER AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to non-passenger auto-
mobiles, the following text:
‘‘That, section 32902 of title 49, United States Code, is
amended by adding at the end the following new subsection:
‘‘ ‘(l) NON-PASSENGER AUTOMOBILES.—The average
fuel economy standard for non-passenger automobiles man-
ufactured by a manufacturer in a model year after model
year ll shall be ll miles per gallon.’ ’’, the first blank
space being filled in with a subsection designation, the sec-
ond blank space being filled in with the number of a year,
and the third blank space being filled in with a number.
(B) PASSENGER
AUTOMOBILES.—In the
case of a bill relating to a failure timely to issue
final regulations relating to passenger auto-
mobiles, the following text:
‘‘That, section 32902(b) of title 49, United States Code, is
amended to read as follows:
‘‘ ‘(b) PASSENGER AUTOMOBILES.—Except as provided
in this section, the average fuel economy standard for pas-
senger automobiles manufactured by a manufacturer in a
model year after model year ll shall be ll miles per
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gallon.’ ’’, the first blank space being filled in with the num-
ber of a year and the second blank space being filled in
with a number.
(C) SUBSTITUTE
TEXT.—Any text sub-
stituted by an amendment that is in order under
subsection (c)(3).
(c) EXPEDITED PROCEDURES.—A bill described in
subsection (b) shall be considered in a House of Congress
in accordance with the procedures provided for the consider-
ation of joint resolutions in paragraphs (3) through (8) of
section 8066(c) of the Department of Defense Appropria-
tions Act, 1985 (as contained in section 101(h) of Public
Law 98–473; 98 Stat. 1936), with the following exceptions:
(1) REFERENCES
TO
RESOLUTION.—The ref-
erences in such paragraphs to a resolution shall be
deemed to refer to the bill described in subsection (b).
(2) COMMITTEES OF JURISDICTION.—The com-
mittees to which the bill is referred under this sub-
section shall—
(A) in the Senate, be the Committee on
Commerce, Science, and Transportation; and
(B) in the House of Representatives, be the
Committee on Energy and Commerce.
(3) AMENDMENTS.—
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(A) AMENDMENTS
IN
ORDER.—Only four
amendments to the bill are in order in each
House, as follows:
(i) Two amendments proposed by the
majority leader of that House.
(ii) Two amendments proposed by the
minority leader of that House.
(B) FORM AND CONTENT.—To be in order
under subparagraph (A), an amendment shall
propose to strike all after the enacting clause and
substitute text that only includes the same text as
is proposed to be stricken except for one or more
different numbers in the text.
(C) DEBATE, ET
CETERA.—Subparagraph
(B) of section 8066(c)(5) of the Department of
Defense Appropriations Act, 1985 (98 Stat.
1936) shall apply to the consideration of each
amendment proposed pursuant to subparagraph
(A) of this paragraph in the same manner as
such subparagraph (B) applies to debatable mo-
tions.
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SEC. 803. REVISED CONSIDERATIONS FOR DECISIONS ON
MAXIMUM FEASIBLE AVERAGE FUEL ECON-
OMY.
Section 32902(f) of title 49, United States Code, is
amended to read as follows:
‘‘(f) CONSIDERATIONS FOR DECISIONS ON MAXIMUM
FEASIBLE
AVERAGE
FUEL
ECONOMY.—When deciding
maximum feasible average fuel economy under this section,
the Secretary of Transportation shall consider the following
matters:
‘‘(1) Technological feasibility.
‘‘(2) Economic practicability.
‘‘(3) The effect of other motor vehicle standards
of the Government on fuel economy.
‘‘(4) The need of the United States to conserve
energy.
‘‘(5) The desirability of reducing United States
dependence on imported oil.
‘‘(6) The effects of the average fuel economy
standards on motor vehicle and passenger safety.
‘‘(7) The effects of increased fuel economy on air
quality.
‘‘(8) The adverse effects of average fuel economy
standards on the relative competitiveness of manufac-
turers.
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‘‘(9) The effects of compliance with average fuel
economy standards on levels of employment in the
United States.
‘‘(10) The cost and lead time necessary for the
introduction of the necessary new technologies.
‘‘(11) The potential for advanced technology ve-
hicles, such as hybrid and fuel cell vehicles, to con-
tribute to the achievement of significant reductions in
fuel consumption.
‘‘(12) The extent to which the necessity for vehi-
cle manufacturers to incur near-term costs to comply
with the average fuel economy standards adversely af-
fects the availability of resources for the development
of advanced technology for the propulsion of motor ve-
hicles.
‘‘(13) The report of the National Research Coun-
cil that is entitled ‘Effectiveness and Impact of Cor-
porate Average Fuel Economy Standards’, issued in
January 2002.’’.
SEC. 804. EXTENSION OF MAXIMUM FUEL ECONOMY IN-
CREASE FOR ALTERNATIVE FUELED VEHI-
CLES.
Section 32906(a)(1) of title 49, United States Code,
is amended—
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(1) in subparagraph (A), by striking ‘‘1993–
2004’’ and inserting ‘‘1993 through 2008’’; and
(2) in subparagraph (B), by striking ‘‘2005–
2008’’ and inserting ‘‘2009 through 2012’’.
SEC. 805. PROCUREMENT OF ALTERNATIVE FUELED AND
HYBRID LIGHT DUTY TRUCKS.
(a) VEHICLE FLEETS NOT COVERED BY REQUIRE-
MENT IN ENERGY POLICY ACT OF 1992.—
(1) HYBRID VEHICLES.—The head of each agen-
cy of the executive branch shall coordinate with the
Administrator of General Services to ensure that only
hybrid vehicles are procured by or for each agency
fleet of light duty trucks that is not in a fleet of vehi-
cles to which section 303 of the Energy Policy Act of
1992 (42 U.S.C. 13212) applies.
(2) WAIVER AUTHORITY.—The head of an agen-
cy, in consultation with the Administrator, may
waive the applicability of the policy regarding the
procurement of hybrid vehicles in paragraph (1) to
that agency to the extent that the head of that agency
determines necessary—
(A) to meet specific requirements of the
agency for capabilities of light duty trucks;
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(B) to procure vehicles consistent with the
standards applicable to the procurement of fleet
vehicles for the Federal Government;
(C) to adjust to limitations on the commer-
cial availability of light duty trucks that are hy-
brid vehicles; or
(D) to avoid the necessity of procuring a
hybrid vehicle for the agency when each of the
hybrid vehicles available for meeting the require-
ments of the agency has a cost to the United
States that exceeds the costs of comparable non-
hybrid vehicles by a factor that is significantly
higher than the difference between—
(i) the real cost of the hybrid vehicle to
retail purchasers, taking into account the
benefit of any tax incentives available to re-
tail purchasers for the purchase of the hy-
brid vehicle; and
(ii) the costs of the comparable non-
hybrid vehicles to retail purchasers.
(3) APPLICABILITY
TO
PROCUREMENTS
AFTER
FISCAL YEAR 2004.—This subsection applies with re-
spect to procurements of light duty trucks in fiscal
year 2005 and subsequent fiscal years.
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(b) REQUIREMENT TO EXCEED REQUIREMENT IN EN-
ERGY POLICY ACT OF 1992.—
(1) LIGHT
DUTY
TRUCKS.—The head of each
agency of the executive branch shall coordinate with
the Administrator of General Services to ensure that,
of the light duty trucks procured in fiscal years after
fiscal year 2004 for the fleets of light duty vehicles of
the agency to which section 303 of the Energy Policy
Act of 1992 (42 U.S.C. 13212) applies—
(A) 5 percent of the total number of such
trucks that are procured in each of fiscal years
2005 and 2006 are alternative fueled vehicles or
hybrid vehicles; and
(B) 10 percent of the total number of such
trucks that are procured in each fiscal year after
fiscal year 2006 are alternative fueled vehicles or
hybrid vehicles.
(2) COUNTING OF TRUCKS.—Light duty trucks
acquired for an agency of the executive branch that
are counted to comply with section 303 of the Energy
Policy Act of 1992 (42 U.S.C. 13212) for a fiscal year
shall be counted to determine the total number of light
duty trucks procured for that agency for that fiscal
year for the purposes of paragraph (1), but shall not
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be counted to satisfy the requirement in that para-
graph.
(c) DEFINITIONS.—In this section:
(1) HYBRID VEHICLE.—The term ‘‘hybrid vehi-
cle’’ means—
(A) a motor vehicle that draws propulsion
energy from onboard sources of stored energy
that are both—
(i) an internal combustion or heat en-
gine using combustible fuel; and
(ii) a rechargeable energy storage sys-
tem; and
(B) any other vehicle that is defined as a
hybrid vehicle in regulations prescribed by the
Secretary of Energy for the administration of
title III of the Energy Policy Act of 1992.
(2) ALTERNATIVE FUELED VEHICLE.—The term
‘‘alternative fueled vehicle’’ has the meaning given
that term in section 301 of the Energy Policy Act of
1992 (42 U.S.C. 13211).
(d) INAPPLICABILITY
TO
DEPARTMENT
OF
DE-
FENSE.—This section does not apply to the Department of
Defense, which is subject to comparable requirements under
section 318 of the National Defense Authorization Act for
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Fiscal Year 2002 (Public Law 107–107; 115 Stat. 1055;
10 U.S.C. 2302 note).
SEC. 806. USE OF ALTERNATIVE FUELS.
(a) EXCLUSIVE USE OF ALTERNATIVE FUELS IN DUAL
FUELED VEHICLES.—The head of each agency of the execu-
tive branch shall coordinate with the Administrator of Gen-
eral Services to ensure that, not later than January 1, 2009,
the fuel actually used in the fleet of dual fueled vehicles used
by the agency is an alternative fuel.
(b) WAIVER AUTHORITY.—
(1) CAPABILITY WAIVER.—
(A) AUTHORITY.—If the Secretary of Trans-
portation determines that not all of the dual
fueled vehicles can operate on alternative fuels at
all times, the Secretary may waive the require-
ment of subsection (a) in part, but only to the
extent that—
(i) not later than January 1, 2009, not
less than 50 percent of the total annual vol-
ume of fuel used in the dual fueled vehicles
shall be alternative fuels; and
(ii) not later than January 1, 2011,
not less than 75 percent of the total annual
volume of fuel used in the dual fueled vehi-
cles shall be alternative fuels.
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(B) EXPIRATION.—In no case may a waiver
under subparagraph (A) remain in effect after
December 31, 2012.
(2) REGIONAL FUEL AVAILABILITY WAIVER.—The
Secretary may waive the applicability of the require-
ment of subsection (a) to vehicles used by an agency
in a particular geographic area where the alternative
fuel otherwise required to be used in the vehicles is
not reasonably available to retail purchasers of the
fuel, as certified to the Secretary by the head of the
agency.
(c) DEFINITIONS.—In this section:
(1) ALTERNATIVE FUEL.—The term ‘‘alternative
fuel’’ has the meaning given that term in section
32901(a)(1) of title 49, United States Code.
(2) DUAL FUELED VEHICLE.—The term ‘‘dual
fueled vehicle’’ has the meaning given the term ‘‘dual
fueled automobile’’ in section 32901(a)(8) of title 49,
United States Code.
(3) FLEET.—The term ‘‘fleet’’, with respect to
dual fueled vehicles, has the meaning that is given
that term with respect to light duty motor vehicles in
section 301(9) of the Energy Policy Act of 1992 (42
U.S.C. 13211(9)).
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SEC. 807. HYBRID ELECTRIC AND FUEL CELL VEHICLES.
(a) EXPANSION OF SCOPE.—The Secretary of Energy
shall expand the research and development program of the
Department of Energy on advanced technologies for improv-
ing the environmental cleanliness of vehicles to emphasize
research and development on the following:
(1) Fuel cells, including—
(A) high temperature membranes for fuel
cells; and
(B) fuel cell auxiliary power systems.
(2) Hydrogen storage.
(3) Advanced vehicle engine and emission control
systems.
(4) Advanced batteries and power electronics for
hybrid vehicles.
(5) Advanced fuels.
(6) Advanced materials.
(b) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Department of Energy
for fiscal year 2003, the amount of $225,000,000 for car-
rying out the expanded research and development program
provided for under this section.
SEC. 808. DIESEL FUELED VEHICLES.
(a) DIESEL COMBUSTION
AND AFTER TREATMENT
TECHNOLOGIES.—The Secretary of Energy shall accelerate
research and development directed toward the improvement
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of diesel combustion and after treatment technologies for use
in diesel fueled motor vehicles.
(b) GOAL.—
(1) COMPLIANCE WITH TIER 2 EMISSION STAND-
ARDS BY 2010.—The Secretary shall carry out sub-
section (a) with a view to developing and dem-
onstrating diesel technology meeting tier 2 emission
standards not later than 2010.
(2) TIER 2 EMISSION STANDARDS DEFINED.—In
this subsection, the term ‘‘tier 2 emission standards’’
means the motor vehicle emission standards promul-
gated by the Administrator of the Environmental
Protection Agency on February 10, 2000, under sec-
tions 202 and 211 of the Clean Air Act to apply to
passenger cars, light trucks, and larger passenger ve-
hicles of model years after the 2003 vehicle model
year.
SEC. 809. FUEL CELL DEMONSTRATION.
(a) PROGRAM REQUIRED.—The Secretary of Energy
and the Secretary of Defense shall jointly carry out a pro-
gram to demonstrate—
(1) fuel cell technologies developed in the PNGV
and Freedom Car programs;
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(2) fuel cell technologies developed in research
and development programs of the Department of De-
fense; and
(3) follow-on fuel cell technologies.
(b) PURPOSES OF PROGRAM.—The purposes of the pro-
gram are to identify and support technological advances
that are necessary to achieve accelerated availability of fuel
cell technology for use both for nonmilitary and military
purposes.
(c) COOPERATION WITH INDUSTRY.—
(1) IN GENERAL.—The demonstration program
shall be carried out in cooperation with industry, in-
cluding the automobile manufacturing industry and
the automotive systems and component suppliers in-
dustry.
(2) COST SHARING.—The Secretary of Energy
and the Secretary of Defense shall provide for indus-
try to bear, in cash or in kind, at least one-half of
the total cost of carrying out the demonstration pro-
gram.
(d) DEFINITIONS.—In this section:
(1) PNGV PROGRAM.—The term ‘‘PNGV pro-
gram’’ means the Partnership for a New Generation
of Vehicles, a cooperative program engaged in by the
Departments of Commerce, Energy, Transportation,
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and Defense, the Environmental Protection Agency,
the National Science Foundation, and the National
Aeronautics and Space Administration with the auto-
motive industry for the purpose of developing a new
generation of vehicles with capabilities resulting in
significantly improved fuel efficiency together with
low emissions without compromising the safety, per-
formance, affordability, or utility of the vehicles.
(2) FREEDOM CAR PROGRAM.—The term ‘‘Free-
dom Car program’’ means a cooperative research pro-
gram engaged in by the Department of Energy with
the United States Council on Automotive Research as
a follow-on to the PNGV program.
SEC. 810. BUS REPLACEMENT.
(a) REQUIREMENT
FOR STUDY.—The Secretary of
Transportation shall carry out a study to determine how
best to provide for converting the composition of the fleets
of buses in metropolitan areas and school systems from
buses utilizing current diesel technology to—
(1) buses that draw propulsion from onboard fuel
cells;
(2) buses that are hybrid electric vehicles;
(3) buses that are fueled by clean-burning fuels,
such as renewable fuels (including agriculture-based
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biodiesel fuels), natural gas, and ultra-low sulphur
diesel;
(4) buses that are powered by clean diesel en-
gines: or
(5) an assortment of buses described in para-
graphs (1), (2), (3), and (4).
(b) REPORT.—
(1) REQUIREMENT.—The Secretary of Transpor-
tation shall submit a report on the results of the study
on bus fleet conversions under subsection (a) to Con-
gress.
(2) CONTENT.—The report on bus fleet conver-
sions shall include the following:
(A) An assessment of effectuating conver-
sions by the following means:
(i) Replacement of buses.
(ii) Replacement of power and propul-
sion systems in buses utilizing current die-
sel technology.
(iii) Other means.
(B) Feasible schedules for carrying out the
conversions.
(C) Estimated costs of carrying out the con-
versions.
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(D) An assessment of the benefits of the con-
versions in terms of emissions control and reduc-
tion of fuel consumption.
SEC. 811. AVERAGE FUEL ECONOMY STANDARDS FOR PICK-
UP TRUCKS.
(a) IN GENERAL.—Section 32902(a) of title 49, United
States Code, is amended—
(1) by inserting ‘‘(1)’’ after the after ‘‘AUTO-
MOBILES.—’’; and
(2) by adding at the end the following new para-
graph:
‘‘(2) The average fuel economy standard for pickup
trucks manufactured by a manufacturer in a model year
after model year 2004 shall be no higher than 20.7 miles
per gallon. No average fuel economy standard prescribed
under another provision of this section shall apply to pick-
up trucks.’’.
(b) 
DEFINITION
OF
PICKUP
TRUCK.—Section
32901(a) of such title is amended by adding at the end the
following new paragraph:
‘‘(17) ‘pickup truck’ has the meaning given that
term in regulations prescribed by the Secretary for
the administration of this chapter, as in effect on
January 1, 2002, except that such term shall also in-
clude any additional vehicle that the Secretary de-
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fines as a pickup truck in regulations prescribed for
the administration of this chapter after such date.’’.
SEC. 812. EXCEPTION TO HOV PASSENGER REQUIREMENTS
FOR ALTERNATIVE FUEL VEHICLES.
Section 102(a)(1) of title 23, United States Code, is
amended by inserting after ‘‘required’’ the following: ‘‘(un-
less, in the discretion of the State transportation depart-
ment, the vehicle is being operated on, or is being fueled
by, an alternative fuel (as defined in section 301(2) of the
Energy Policy Act of 1992 (42 U.S.C. 13211(2)))’’.
SEC. 813. DATA COLLECTION.
Section 205 of the Department of Energy Organization
Act (42 U.S.C. 7135) is amended by adding at the end the
following:
‘‘(m) In order to improve the ability to evaluate the
effectiveness of the Nation’s renewable fuels mandate, the
Administrator shall conduct and publish the results of a
survey of renewable fuels consumption in the motor vehicle
fuels market in the United States monthly, and in a man-
ner designed to protect the confidentiality of individual re-
sponses. In conducting the survey, the Administrator shall
collect information retrospectively to 1998, both on a na-
tional basis and a regional basis, including—
(1) the quantity of renewable fuels produced;
(2) the cost of production;
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(3) the cost of blending and marketing;
(4) the quantity of renewable fuels blended;
(5) the quantity of renewable fuels imported; and
(6) market price data.
SEC. 814. GREEN SCHOOL BUS PILOT PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Energy and
the Secretary of Transportation shall jointly establish a
pilot program for awarding grants on a competitive basis
to eligible entities for the demonstration and commercial
application of alternative fuel school buses and ultra-low
sulfur diesel school buses.
(b) REQUIREMENTS.—Not later than 3 months after
the date of the enactment of this Act, the Secretary shall
establish and publish in the Federal Register grant require-
ments on eligibility for assistance, and on implementation
of the program established under subsection (a), including
certification requirements to ensure compliance with this
subtitle.
(c) SOLICITATION.—Not later than 6 months after the
date of the enactment of this Act, the Secretary shall solicit
proposals for grants under this section.
(d) ELIGIBLE RECIPIENTS.—A grant shall be awarded
under this section only—
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(1) to a local governmental entity responsible for
providing school bus service for one or more public
school systems; or
(2) jointly to an entity described in paragraph
(1) and a contracting entity that provides school bus
service to the public school system or systems.
(e) TYPES OF GRANTS.—
(1) IN
GENERAL.—Grants under this section
shall be for the demonstration and commercial appli-
cation of technologies to facilitate the use of alter-
native fuel school buses and ultra-low sulfur diesel
school buses instead of buses manufactured before
model year 1977 and diesel-powered buses manufac-
tured before model year 1991.
(2) NO ECONOMIC BENEFIT.—Other than the re-
ceipt of the grant, a recipient of a grant under this
section may not receive any economic benefit in con-
nection with the receipt of the grant.
(3) PRIORITY
OF
GRANT
APPLICATIONS.—The
Secretary shall give priority to awarding grants to
applicants who can demonstrate the use of alternative
fuel buses and ultra-low sulfur diesel school buses in-
stead of buses manufactured before model year 1977.
(f) CONDITIONS OF GRANT.—A grant provided under
this section shall include the following conditions:
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(1) All buses acquired with funds provided under
the grant shall be operated as part of the school bus
fleet for which the grant was made for a minimum
of 5 years.
(2) Funds provided under the grant may only be
used—
(A) to pay the cost, except as provided in
paragraph (3), of new alternative fuel school
buses or ultra-low sulfur diesel school buses, in-
cluding State taxes and contract fees; and
(B) to provide—
(i) up to 10 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the infra-
structure will only be available to the grant
recipient; and
(ii) up to 15 percent of the price of the
alternative fuel buses acquired, for necessary
alternative fuel infrastructure if the infra-
structure will be available to the grant re-
cipient and to other bus fleets.
(3) The grant recipient shall be required to pro-
vide at least the lesser of 15 percent of the total cost
of each bus received or $15,000 per bus.
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(4) In the case of a grant recipient receiving a
grant to demonstrate ultra-low sulfur diesel school
buses, the grant recipient shall be required to provide
documentation to the satisfaction of the Secretary
that diesel fuel containing sulfur at not more than 15
parts per million is available for carrying out the
purposes of the grant, and a commitment by the ap-
plicant to use such fuel in carrying out the purposes
of the grant.
(g) BUSES.—Funding under a grant made under this
section may only be used to demonstrate the use of new al-
ternative fuel school buses or ultra-low sulfur diesel school
buses that—
(1) have a gross vehicle weight greater than
14,000 pounds;
(2) are powered by a heavy duty engine;
(3) in the case of alternative fuel school buses,
emit not more than—
(A) for buses manufactured in model year
2002, 2.5 grams per brake horsepower-hour of
nonmethane hydrocarbons and oxides of nitrogen
and .01 grams per brake horsepower-hour of par-
ticulate matter; and
(B) for buses manufactured in model years
2003 through 2006, 1.8 grams per brake horse-
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power-hour of nonmethane hydrocarbons and ox-
ides of nitrogen and .01 grams per brake horse-
power-hour of particulate matter; and
(4) in the case of ultra-low sulfur diesel school
buses, emit not more than the lesser of—
(A) the emissions of nonmethane hydro-
carbons, oxides of nitrogen, and particulate mat-
ter of the best performing technology of the same
class of ultra-low sulfur diesel school buses com-
mercially available at the time the grant is
made; or
(B) the applicable following amounts—
(i) for buses manufactured in model
year 2002 or 2003, 3.0 grams per brake
horsepower-hour of oxides of nitrogen and
.01 grams per brake horsepower-hour of
particulate matter; and
(ii) for buses manufactured in model
years 2004 through 2006, 2.5 grams per
brake horsepower-hour of nonmethane hy-
drocarbons and oxides of nitrogen and .01
grams per brake horsepower-hour of partic-
ulate matter.
(h) DEPLOYMENT AND DISTRIBUTION.—The Secretary
shall seek to the maximum extent practicable to achieve na-
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tionwide deployment of alternative fuel school buses through
the program under this section, and shall ensure a broad
geographic distribution of grant awards, with a goal of no
State receiving more than 10 percent of the grant funding
made available under this section for a fiscal year.
(i) LIMIT ON FUNDING.—The Secretary shall provide
not less than 20 percent and not more than 25 percent of
the grant funding made available under this section for any
fiscal year for the acquisition of ultra-low sulfur diesel
school buses.
(j) DEFINITIONS.—For purposes of this section—
(1) the term ‘‘alternative fuel school bus’’ means
a bus powered substantially by electricity (including
electricity supplied by a fuel cell), or by liquefied nat-
ural gas, compressed natural gas, liquefied petroleum
gas, hydrogen, propane, or methanol or ethanol at no
less than 85 percent by volume;
(2) the term ‘‘idling’’ means not turning off an
engine while remaining stationary for more than ap-
proximately 3 minutes; and
(3) the term ‘‘ultra-low sulfur diesel school bus’’
means a school bus powered by diesel fuel which con-
tains sulfur at not more than 15 parts per million.
(k) REDUCTION OF SCHOOL BUS IDLING.—Each local
educational agency (as defined in section 9101 of the Ele-
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mentary and Secondary Education Act of 1965 (20 U.S.C.
7801)) that receives Federal funds under the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 6301 et
seq.) is encouraged to develop a policy to reduce the inci-
dence of school buses idling at schools when picking up and
unloading students.
SEC. 815. FUEL CELL BUS DEVELOPMENT AND DEMONSTRA-
TION PROGRAM.
(a) ESTABLISHMENT
OF PROGRAM.—The Secretary
shall establish a program for entering into cooperative
agreements with private sector fuel cell bus developers for
the development of fuel cell-powered school buses, and subse-
quently with not less than two units of local government
using natural gas-powered school buses and such private
sector fuel cell bus developers to demonstrate the use of fuel
cell-powered school buses.
(b) COST SHARING.—The non-Federal contribution for
activities funded under this section shall be not less than—
(1) 20 percent for fuel infrastructure develop-
ment activities; and
(2) 50 percent for demonstration activities and
for development activities not described in paragraph
(1).
(c) FUNDING.—No more than $25,000,000 of the
amounts authorized under section 815 may be used for car-
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rying out this section for the period encompassing fiscal
years 2003 through 2006.
(d) REPORTS TO CONGRESS.—Not later than 3 years
after the date of the enactment of this Act, and not later
than October 1, 2006, the Secretary shall transmit to the
appropriate congressional committees a report that—
(1) evaluates the process of converting natural
gas infrastructure to accommodate fuel cell-powered
school buses; and
(2) assesses the results of the development and
demonstration program under this section.
SEC. 816. AUTHORIZATION OF APPROPRIATIONS.
There are authorized to be appropriated to the Sec-
retary of Energy for carrying out sections 814 and 815,
to remain available until expended—
(1) $50,000,000 for fiscal year 2003;
(2) $60,000,000 for fiscal year 2004;
(3) $70,000,000 for fiscal year 2005; and
(4) $80,000,000 for fiscal year 2006.
SEC. 817. TEMPORARY BIODIESEL CREDIT EXPANSION.
(a) BIODIESEL CREDIT EXPANSION.—Section 312(b)
of the Energy Policy Act of 1992 (42 U.S.C. 13220(b)) is
amended by striking paragraph (2) and inserting the fol-
lowing:
‘‘(2) USE.—
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‘‘(A) IN
GENERAL.—A fleet or covered
person—
‘‘(i) may use credits allocated under
subsection (a) to satisfy more than 50 per-
cent of the alternative fueled vehicle require-
ments of a fleet or covered person under this
title, title IV, and title V; but
‘‘(ii) may use credits allocated under
subsection (a) to satisfy 100 percent of the
alternative fueled vehicle requirements of a
fleet or covered person under title V for 1 or
more of model years 2002 through 2005.
‘‘(B) APPLICABILITY.—Subparagraph (A)
does not apply to a fleet or covered person that
is a biodiesel alternative fuel provider described
in section 501(a)(2)(A).’’.
(b) TREATMENT AS SECTION 508 CREDITS.—Section
312(c) of the Energy Policy Act of 1992 (42 U.S.C.
13220(c)) is amended—
(1) in the subsection heading, by striking
‘‘CREDIT NOT’’ and inserting ‘‘TREATMENT AS’’; and
(2) by striking ‘‘shall not be considered’’ and in-
serting ‘‘shall be treated as’’.
(c) ALTERNATIVE FUELED VEHICLE STUDY AND RE-
PORT.—
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(1) DEFINITIONS.—In this subsection:
(A) ALTERNATIVE FUEL.—The term ‘‘alter-
native fuel’’ has the meaning given the term in
section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211).
(B) ALTERNATIVE FUELED VEHICLE.—The
term ‘‘alternative fueled vehicle’’ has the mean-
ing given the term in section 301 of the Energy
Policy Act of 1992 (42 U.S.C. 13211).
(C) LIGHT
DUTY
MOTOR
VEHICLE.—The
term ‘‘light duty motor vehicle’’ has the meaning
given the term in section 301 of the Energy Pol-
icy Act of 1992 (42 U.S.C. 13211).
(D) SECRETARY.—The term ‘‘Secretary’’
means the Secretary of Energy.
(2) BIODIESEL CREDIT EXTENSION STUDY.—As
soon as practicable after the date of enactment of this
Act, the Secretary shall conduct a study—
(A) to determine the availability and cost of
light duty motor vehicles that qualify as alter-
native fueled vehicles under title V of the Energy
Policy Act of 1992 (42 U.S.C. 13251 et seq.);
and
(B) to compare—
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(i) the availability and cost of bio-
diesel; with
(ii) the availability and cost of fuels
that qualify as alternative fuels under title
V of the Energy Policy Act of 1992 (42
U.S.C. 13251 et seq.).
(3) REPORT.—Not later than 1 year after the
date of enactment of this Act, the Secretary shall sub-
mit to Congress a report that—
(A) describes the results of the study con-
ducted under paragraph (2); and
(B) includes any recommendations of the
Secretary for legislation to extend the temporary
credit provided under subsection (a) beyond
model year 2005.
SEC. 818. NEIGHBORHOOD ELECTRIC VEHICLES.
Section 301 of the Energy Policy Act of 1992 (42
U.S.C. 13211) is amended—
(1) by striking ‘‘or a dual fueled vehicle’’ and in-
serting ‘‘, a dual fueled vehicle, or a neighborhood
electric vehicle’’;
(2) by striking ‘‘and’’ at the end of paragraph
(13);
(3) by striking the period at the end of subpara-
graph (14) and inserting ‘‘; and’’; and
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(4) by adding at the end the following:
‘‘(15) the term ‘neighborhood electric vehicle’
means a motor vehicle that qualifies as both—
‘‘(A) a low-speed vehicle, as such term is de-
fined in section 571.3(b) of title 49, Code of Fed-
eral Regulations; and
‘‘(B) a zero-emission vehicle, as such term is
defined in section 86.1703–99 of title 40, Code of
Federal Regulations.’’.
SEC. 819. CREDIT FOR HYBRID VEHICLES, DEDICATED AL-
TERNATIVE FUEL VEHICLES, AND INFRA-
STRUCTURE.
Section 507 of the Energy Policy Act of 1992 (42
U.S.C. 13258) is amended by adding at the end the fol-
lowing:
‘‘(p) CREDITS FOR NEW QUALIFIED HYBRID MOTOR
VEHICLES.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) 2000 MODEL YEAR CITY FUEL EFFI-
CIENCY.—The term ‘2000 model year city fuel ef-
ficiency’, with respect to a motor vehicle, means
fuel efficiency determined in accordance with the
following tables:
‘‘(i) In the case of a passenger auto-
mobile:
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The 2000 model year city
‘‘If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs ..........................................................................
43.7 mpg
2,000 lbs ..........................................................................................
38.3 mpg
2,250 lbs ..........................................................................................
34.1 mpg
2,500 lbs ..........................................................................................
30.7 mpg
2,750 lbs ..........................................................................................
27.9 mpg
3,000 lbs ..........................................................................................
25.6 mpg
3,500 lbs ..........................................................................................
22.0 mpg
4,000 lbs ..........................................................................................
19.3 mpg
4,500 lbs ..........................................................................................
17.2 mpg
5,000 lbs ..........................................................................................
15.5 mpg
5,500 lbs ..........................................................................................
14.1 mpg
6,000 lbs ..........................................................................................
12.9 mpg
6,500 lbs ..........................................................................................
11.9 mpg
7,000 to 8,500 lbs ...........................................................................
11.1 mpg.
‘‘(ii) In the case of a light truck:
The 2000 model year city
‘‘If vehicle inertia weight class is:
fuel efficiency is:
1,500 or 1,750 lbs ..........................................................................
37.6 mpg
2,000 lbs ..........................................................................................
33.7 mpg
2,250 lbs ..........................................................................................
30.6 mpg
2,500 lbs ..........................................................................................
28.0 mpg
2,750 lbs ..........................................................................................
25.9 mpg
3,000 lbs ..........................................................................................
24.1 mpg
3,500 lbs ..........................................................................................
21.3 mpg
4,000 lbs ..........................................................................................
19.0 mpg
4,500 lbs ..........................................................................................
17.3 mpg
5,000 lbs ..........................................................................................
15.8 mpg
5,500 lbs ..........................................................................................
14.6 mpg
6,000 lbs ..........................................................................................
13.6 mpg
6,500 lbs ..........................................................................................
12.8 mpg
7,000 to 8,500 lbs ...........................................................................
12.0 mpg.
‘‘(B) ADMINISTRATOR.—The term ‘Adminis-
trator’ means the Administrator of the Environ-
mental Protection Agency.
‘‘(C) ENERGY STORAGE DEVICE.—The term
‘energy storage device’ means an onboard re-
chargeable energy storage system or similar stor-
age device.
‘‘(D) FUEL EFFICIENCY.—The term ‘fuel ef-
ficiency’ means the percentage increased fuel effi-
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ciency specified in table 1 in paragraph (2)(C)
over the average 2000 model year city fuel effi-
ciency of vehicles in the same weight class.
‘‘(E) MAXIMUM
AVAILABLE
POWER.—The
term ‘maximum available power’, with respect to
a new qualified hybrid motor vehicle that is a
passenger vehicle or light truck, means the
quotient obtained by dividing—
‘‘(i) the maximum power available
from the electrical storage device of the new
qualified hybrid motor vehicle, during a
standard 10-second pulse power or equiva-
lent test; by
‘‘(ii) the sum of—
‘‘(I) the maximum power de-
scribed in clause (i); and
‘‘(II) the net power of the internal
combustion or heat engine, as deter-
mined in accordance with standards
established by the Society of Auto-
mobile Engineers.
‘‘(F) MOTOR
VEHICLE.—The term ‘motor
vehicle’ has the meaning given the term in sec-
tion 216 of the Clean Air Act (42 U.S.C. 7550).
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‘‘(G) NEW QUALIFIED HYBRID MOTOR VEHI-
CLE.—The term ‘new qualified hybrid motor ve-
hicle’ means a motor vehicle that—
‘‘(i) draws propulsion energy from
both—
‘‘(I) an internal combustion en-
gine (or heat engine that uses combus-
tible fuel); and
‘‘(II) an energy storage device;
‘‘(ii) in the case of a passenger auto-
mobile or light truck—
‘‘(I) in the case of a 2001 or later
model vehicle, receives a certificate of
conformity under the Clean Air Act
(42 U.S.C. 7401 et seq.) and produces
emissions at a level that is at or below
the applicable qualifying California
low emissions vehicle standards estab-
lished 
under 
authority 
of 
section
243(e)(2) of the Clean Air Act (42
U.S.C. 7583(e)(2)) for that make and
model year; and
‘‘(II) in the case of a 2004 or
later model vehicle, is certified by the
Administrator as producing emissions
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at a level that is at or below the level
established for Bin 5 vehicles in the
Tier 2 regulations promulgated by the
Administrator under section 202(i) of
the Clean Air Act (42 U.S.C. 7521(i))
for that make and model year vehicle;
and
‘‘(iii) employs a vehicle braking system
that recovers waste energy to charge an en-
ergy storage device.
‘‘(H) VEHICLE INERTIA WEIGHT CLASS.—
The term ‘vehicle inertia weight class’ has the
meaning given the term in regulations promul-
gated by the Administrator for purposes of the
administration of title II of the Clean Air Act
(42 U.S.C. 7521 et seq.).
‘‘(2) ALLOCATION.—
‘‘(A) IN GENERAL.—The Secretary shall al-
locate a partial credit to a fleet or covered person
under this title if the fleet or person acquires a
new qualified hybrid motor vehicle that is eligi-
ble to receive a credit under each of the tables in
subparagraph (C).
‘‘(B) AMOUNT.—The amount of a partial
credit allocated under subparagraph (A) for a
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vehicle described in that subparagraph shall be
equal to the sum of—
‘‘(i) the partial credits determined
under table 1 in subparagraph (C); and
‘‘(ii) the partial credits determined
under table 2 in subparagraph (C).
‘‘(C) TABLES.—The tables referred to in
subparagraphs (A) and (B) are as follows:
‘‘Table 1
Amount of
‘‘Partial credit for increased fuel efficiency:
credit:
At least 125% but less than 150% of 2000 model year city
fuel efficiency ......................................................................
0.14
At least 150% but less than 175% of 2000 model year city
fuel efficiency ......................................................................
0.21
At least 175% but less than 200% of 2000 model year city
fuel efficiency ......................................................................
0.28
At least 200% but less than 225% of 2000 model year city
fuel efficiency ......................................................................
0.35
At least 225% but less than 250% of 2000 model year city
fuel efficiency ......................................................................
0.50.
‘‘Table 2
Amount of
‘‘Partial credit for ‘Maximum Available Power’:
credit:
At least 5% but less than 10% ..............................................
0.125
At least 10% but less than 20% ............................................
0.250
At least 20% but less than 30% ............................................
0.375
At least 30% or more .............................................................
0.500.
‘‘(D) USE OF CREDITS.—At the request of a
fleet or covered person allocated a credit under
this subsection, the Secretary shall, for the year
in which the acquisition of the qualified hybrid
motor vehicle is made, treat that credit as the ac-
quisition of 1 alternative fueled vehicle that the
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fleet or covered person is required to acquire
under this title.
‘‘(3) REGULATIONS.—The Secretary shall pro-
mulgate regulations under which any Federal fleet
that acquires a new qualified hybrid motor vehicle
will receive partial credits determined under the ta-
bles contained in paragraph (2)(C) for purposes of
meeting the requirements of section 303.
‘‘(q) CREDIT FOR SUBSTANTIAL CONTRIBUTION TO-
WARDS USE OF DEDICATED VEHICLES IN NONCOVERED
FLEETS.—
‘‘(1) DEFINITIONS.—In this subsection:
‘‘(A) 
DEDICATED
VEHICLE.—The 
term
‘dedicated vehicle’ includes—
‘‘(i) a light, medium, or heavy duty ve-
hicle; and
‘‘(ii) a neighborhood electric vehicle.
‘‘(B) MEDIUM OR HEAVY DUTY VEHICLE.—
The term ‘medium or heavy duty vehicle’ in-
cludes a vehicle that—
‘‘(i) operates solely on alternative fuel;
and
‘‘(ii)(I) in the case of a medium duty
vehicle, has a gross vehicle weight rating of
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more than 8,500 pounds but not more than
14,000 pounds; or
‘‘(II) in the case of a heavy duty vehi-
cle, has a gross vehicle weight rating of
more than 14,000 pounds.
‘‘(C) 
SUBSTANTIAL
CONTRIBUTION.—The
term ‘substantial contribution’ (equal to 1 full
credit) means not less than $15,000 in cash or
in kind services, as determined by the Secretary.
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary
shall issue a credit to a fleet or covered person under
this title if the fleet or person makes a substantial
contribution toward the acquisition and use of dedi-
cated vehicles by a person that owns, operates, leases,
or otherwise controls a fleet that is not covered by this
title.
‘‘(3) MULTIPLE
CREDITS
FOR
MEDIUM
AND
HEAVY DUTY DEDICATED VEHICLES.—The Secretary
shall issue 2 full credits to a fleet or covered person
under this title if the fleet or person acquires a me-
dium or heavy duty dedicated vehicle.
‘‘(4) USE OF CREDITS.—At the request of a fleet
or covered person allocated a credit under this sub-
section, the Secretary shall, for the year in which the
acquisition of the dedicated vehicle is made, treat that
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credit as the acquisition of 1 alternative fueled vehicle
that the fleet or covered person is required to acquire
under this title.
‘‘(5) LIMITATION.—Per vehicle credits acquired
under this subsection shall not exceed the per vehicle
credits allowed under this section to a fleet for quali-
fying vehicles in each of the weight categories (light,
medium, or heavy duty).
‘‘(r) CREDIT FOR SUBSTANTIAL INVESTMENT IN AL-
TERNATIVE FUEL INFRASTRUCTURE.—
‘‘(1) DEFINITIONS.—In this section, the term
‘qualifying infrastructure’ means—
‘‘(A) equipment required to refuel or re-
charge alternative fueled vehicles;
‘‘(B) facilities or equipment required to
maintain, repair, or operate alternative fueled
vehicles;
‘‘(C) training programs, educational mate-
rials, or other activities necessary to provide in-
formation regarding the operation, maintenance,
or benefits associated with alternative fueled ve-
hicles; and
‘‘(D) such other activities the Secretary con-
siders to constitute an appropriate expenditure
in support of the operation, maintenance, or fur-
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ther widespread adoption of or utilization of al-
ternative fueled vehicles.
‘‘(2) ISSUANCE
OF
CREDITS.—The Secretary
shall issue a credit to a fleet or covered person under
this title for investment in qualifying infrastructure
if the qualifying infrastructure is open to the general
public during regular business hours.
‘‘(3) AMOUNT.—For the purposes of credits
under this subsection—
‘‘(A) 1 credit shall be equal to a minimum
investment of $25,000 in cash or in kind serv-
ices, as determined by the Secretary; and
‘‘(B) except in the case of a Federal or State
fleet, no part of the investment may be provided
by Federal or State funds.
‘‘(4) USE OF CREDITS.—At the request of a fleet
or covered person allocated a credit under this sub-
section, the Secretary shall, for the year in which the
investment is made, treat that credit as the acquisi-
tion of 1 alternative fueled vehicle that the fleet or
covered person is required to acquire under this
title.’’.
SEC. 820. RENEWABLE CONTENT OF MOTOR VEHICLE FUEL.
(a) IN GENERAL.—Section 211 of the Clean Air Act
(42 U.S.C. 7545) is amended—
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(1) by redesignating subsection (o) as subsection
(q); and
(2) by inserting after subsection (n) the fol-
lowing:
‘‘(o) RENEWABLE FUEL PPROGRAM.—
‘‘(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 renewable or recur-
ring 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 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
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‘‘(bb) is natural gas produced
from a biogas source, including a land-
fill, sewage waste treatment plant,
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 ‘renewable
fuel’ includes cellulosic biomass ethanol and
biodiesel (as defined in section 312(f) of the
Energy Policy Act of 1992 (42 U.S.C.
13220(f)).
‘‘(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 aggre-
gate throughput for the calendar year by the
number of days in the calendar year) does not
exceed 75,000 barrels.
‘‘(2) RENEWABLE FUEL PROGRAM.—
‘‘(A) IN GENERAL.—Not later than 1 year
from enactment of this provision, the Adminis-
trator shall promulgate regulations ensuring that
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gasoline sold or dispensed to consumers in the
United States, on an annual average basis, con-
tains the applicable volume of renewable fuel as
specified in subparagraph (B). Regardless of the
date of promulgation, such regulations shall con-
tain compliance provisions 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 im-
pose any per-gallon obligation for the use of re-
newables. If the Administrator does not promul-
gate such regulations, the applicable percentage,
on a volume percentage of gasoline basis, shall be
1.62 in 2004.
‘‘(B) APPLICABLE VOLUME.—
(i) CALENDAR
YEARS
2004
THROUGH
2012.—For the purpose of subparagraph (A),
the applicable volume for any of calendar
years 2004 through 2012 shall be deter-
mined in accordance with the following
table:
Applicable volume of renewable fuel
‘‘Calendar year:
(In billions of gallons)
2004 ............................................................................................
2.3
2005 ............................................................................................
2.6
2006 ............................................................................................
2.9
2007 ............................................................................................
3.2
2008 ............................................................................................
3.5
2009 ............................................................................................
3.9
2010 ............................................................................................
4.3
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‘‘Calendar year:
(In billions of gallons)
2011 ............................................................................................
4.7
2012 ............................................................................................
5.0.
‘‘(ii) 
CALENDAR
YEAR
2013
AND
THEREAFTER.—For the purpose of subpara-
graph (A), the applicable volume for cal-
endar year 2013 and each calendar year
thereafter shall be equal to the product ob-
tained by multiplying—
‘‘(I) the number of gallons of gaso-
line that the Administrator estimates
will be sold or introduced into com-
merce 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 2012.
‘‘(3) 
APPLICABLE
PERCENTAGES.—Not 
later
than October 31 of each calendar year, through 2011,
the Administrator of the Energy Information Admin-
istration shall provide the Administrator an estimate
of the volumes of gasoline sales in the United States
for the coming calendar year. Based on such esti-
mates, the Administrator shall by November 30 of
each calendar year, through 2011, determine and pub-
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lish in the Federal Register, the renewable fuel obliga-
tion, on a volume percentage of gasoline basis, appli-
cable to refiners, blenders, distributors and importers,
as appropriate, for the coming calendar year, to en-
sure that the requirements of paragraph (2) are met.
For each calendar year, the Administrator shall es-
tablish a single applicable percentage that applies to
all parties, and make provision to avoid redundant
obligations. In determining the applicable percent-
ages, the Administrator shall make adjustments to ac-
count 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
amount of credits by any person that refines,
blends, or imports gasoline that contains a quan-
tity of renewable fuel that is greater than the
quantity required under paragraph (2). Such
regulations shall provide for the generation of an
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appropriate amount of credits for biodiesel fuel.
If a small refinery notifies the Administrator
that it waives the exemption provided by this
Act, the regulations shall provide for the genera-
tion of credits by the small refinery beginning in
the year following such notification.
‘‘(B) USE OF CREDITS.—A person that gen-
erates credits under subparagraph (A) may use
the credits, or transfer all or a portion of the
credits to another person, for the purpose of com-
plying with paragraph (2).
‘‘(C) LIFE OF CREDITS.—A credit generated
under this paragraph shall be valid to show com-
pliance:
(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 consecutive
calendar years if the Administrator promul-
gates regulations under paragraph (6).
‘‘(D) INABILITY TO PURCHASE SUFFICIENT
CREDITS.—The regulations promulgated to carry
out this subsection shall include provisions al-
lowing any person that is unable to generate or
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purchase sufficient credits to meet the require-
ments under paragraph (2) to carry forward a
renewables deficit provided that, in the calendar
year following the year in which the renewables
deficit is created, such person shall achieve com-
pliance with the renewables requirement under
paragraph (2), and shall generate or purchase
additional renewables credits to offset the renew-
ables deficit of the previous year.
‘‘(6) SEASONAL
VARIATIONS
IN
RENEWABLE
FUEL USE.—
‘‘(A) STUDY.—For each of calendar years
2004 through 2012, the Administrator of the En-
ergy Information Administration, shall conduct
a study of renewable fuels blending to determine
whether there are excessive seasonal variations in
the use of renewable fuels.
‘‘(B) REGULATION OF EXCESSIVE SEASONAL
VARIATIONS.—If, for any calendar year, the Ad-
ministrator of the Energy Information Adminis-
tration, based on the study under subparagraph
(A), makes the determinations specified in sub-
paragraph (C), the Administrator shall promul-
gate regulations to ensure that 35 percent or
more of the quantity of renewable fuels necessary
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to meet the requirement of paragraph (2) is used
during each of the periods specified in subpara-
graph (D) of each subsequent 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 sub-
paragraph (D) of the calendar year; and
‘‘(ii) a pattern of excessive seasonal
variation described in clause (i) will con-
tinue in subsequent calendar years.
‘‘(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 blend-
ed or consumed in 2004 in a state which has re-
ceived 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
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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-
portunity for comment, that implementa-
tion of the requirement would severely harm
the economy or environment of a State, a
region, or the United States; 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) with-
in 90 days after the date on which the petition
is received by the Administrator.
‘‘(C) TERMINATION OF WAIVERS.—A waiver
granted under subparagraph (A) shall terminate
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after 1 year, but may be renewed by the Admin-
istrator after consultation with the Secretary of
Agriculture and the Secretary of Energy.
‘‘(8) STUDY AND WAIVER FOR INITIAL YEAR OF
PROGRAM.—Not later than 180 days from enactment,
the Secretary of Energy shall complete for the Admin-
istrator a study assessing whether the renewable fuels
requirement under paragraph (2) will likely result in
significant adverse consumer impacts in 2004, on a
national, regional or state basis. Such study shall
evaluate renewable fuel supplies and prices, blendstock
supplies, and supply and distribution system capa-
bilities. Based on such study, the Secretary shall
make specific recommendations to the Administrator
regarding waiver of the requirements of paragraph
(2), in whole or in part, to avoid any such adverse
impacts. Within 270 days from enactment, the Ad-
ministrator shall, consistent with the recommenda-
tions of the Secretary waive, in whole or in part, the
renewable fuels requirement under paragraph (2) by
reducing the national quantity of renewable fuel re-
quired under this subsection in 2004. This provision
shall not be interpreted as limiting the Administra-
tor’s authority to waive the requirements of para-
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graph (2) in whole, or in part, under paragraph (7),
pertaining to waivers.
‘‘(9) SMALL REFINERIES.—
‘‘(A) IN
GENERAL.—The requirement of
paragraph (2) shall not apply to small refineries
until January 1, 2008. Not later than December
31, 2006, the Secretary of Energy shall complete
for the Administrator a study to determine
whether the requirement of paragraph (2) would
impose a disproportionate economic hardship on
small refineries. For any small refinery that the
Secretary of Energy determines would experience
a disproportionate economic hardship, the Ad-
ministrator shall extend the small refinery ex-
emption for such small refinery for no less than
two additional years.
‘‘(B) ECONOMIC HARDSHIP.—
‘‘(i) EXTENSION
OF
EXEMPTION.—A
small refinery may at any time petition the
Administrator for an extension of the ex-
emption from the requirement of paragraph
(2) for the reason of disproportionate eco-
nomic hardship. In evaluating a hardship
petition, the Administrator, in consultation
with the Secretary of Energy, shall consider
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the findings of the study in addition to
other economic factors.
‘‘(ii) DEADLINE FOR ACTION ON PETI-
TIONS.—The Administrator shall act on
any petition submitted by a small refinery
for a hardship exemption not later than 90
days after the receipt of the petition.
‘‘(C) CREDIT PROGRAM.—If a small refin-
ery notifies the Administrator that it waives the
exemption provided by this Act, the regulations
shall provide for the generation of credits by the
small refinery beginning in the year following
such notification.
‘‘(D) OPT-IN
FOR
SMALL
REFINERS.—A
small refinery shall be subject to the require-
ments of this section if it notifies the Adminis-
trator that it waives the exemption under sub-
paragraph (A).
(b) PENALTIES AND ENFORCEMENT.—Section 211(d)
of the Clean Air Act (42 U.S.C. 7545(d)) is amended—
(1) in paragraph (1)—
(A) in the first sentence, by striking ‘‘or
(n)’’ each place it appears and inserting ‘‘(n) or
(o)’’; and
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(B) in the second sentence, by striking ‘‘or
(m)’’ and inserting ‘‘(m), or (o)’’; and
(2) in the first sentence of paragraph (2), by
striking ‘‘and (n)’’ each place it appears and insert-
ing ‘‘(n), and (o)’’.
(c) EXCLUSION FROM ETHANOL WAIVER.—Section
211(h) of the Clean Air Act (42 U.S.C. 7545(h)) is
amended—
(1) by redesignating paragraph (5) as para-
graph (6); and
(2) by inserting after paragraph (4) the fol-
lowing:
‘‘(5) EXCLUSION FROM ETHANOL WAIVER.—
‘‘(A) PROMULGATION
OF
REGULATIONS.—
Upon notification, accompanied by supporting
documentation, from the Governor of a State
that the Reid vapor pressure limitation estab-
lished by paragraph (4) will increase emissions
that contribute to air pollution in any area in
the State, the Administrator shall, by regulation,
apply, in lieu of the Reid vapor pressure limita-
tion established by paragraph (4), the Reid
vapor pressure limitation established by para-
graph (1) to all fuel blends containing gasoline
and 10 percent denatured anhydrous ethanol
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that are sold, offered for sale, dispensed, sup-
plied, offered for supply, transported or intro-
duced into commerce in the area during the high
ozone season.
‘‘(B) DEADLINE FOR PROMULGATION.—The
Administrator 
shall 
promulgate 
regulations
under subparagraph (A) not later than 90 days
after the date of receipt of a notification from a
Governor under that subparagraph.
‘‘(C) EFFECTIVE DATE.—
‘‘(i) IN GENERAL.—With respect to an
area in a State for which the Governor sub-
mits a notification under subparagraph
(A), the regulations under that subpara-
graph shall take effect on the later of—
‘‘(I) the first day of the first high
ozone season for the area that begins
after the date of receipt of the notifica-
tion; or
‘‘(II) 1 year after the date of re-
ceipt of the notification.
‘‘(ii) EXTENSION OF EFFECTIVE DATE
BASED
ON
DETERMINATION
OF
INSUFFI-
CIENT SUPPLY.—
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‘‘(I) IN
GENERAL.—If, after re-
ceipt of a notification with respect to
an area from a Governor of a State
under subparagraph (A), the Adminis-
trator determines, on the Administra-
tor’s own motion or on petition of any
person and after consultation with the
Secretary of Energy, that the promul-
gation of regulations described in sub-
paragraph (A) would result in an in-
sufficient supply of gasoline in the
State, 
the 
Administrator, 
by
regulation—
‘‘(aa) shall extend the effec-
tive date of the regulations under
clause (i) with respect to the area
for not more than 1 year; and
‘‘(bb) may renew the exten-
sion under item (aa) for two ad-
ditional periods, each of which
shall not exceed 1 year.
‘‘(II) DEADLINE FOR ACTION ON
PETITIONS.—The Administrator shall
act on any petition submitted under
subclause (I) not later than 180 days
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after the date of receipt of the peti-
tion.’’.
(d) SURVEY OF RENEWABLE FUEL MARKET.—
(1) SURVEY AND REPORT.—Not later than De-
cember 1, 2005, and annually thereafter, the Admin-
istrator shall—
(A) conduct, with respect to each conven-
tional gasoline use area and each reformulated
gasoline use area in each State, a survey to de-
termine the market shares of—
(i) conventional gasoline containing
ethanol;
(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 REQUIRE-
MENTS.—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
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conducted under paragraph (1) is accurate. The Ad-
ministrator shall rely, to the extent practicable, on ex-
isting reporting and recordkeeping requirements to
avoid duplicative requirements.
(3) APPLICABLE
LAW.—Activities carried out
under this subsection shall be conducted in a manner
designed to protect confidentiality of individual re-
sponses.
(e) RENEWABLE FUELS SAFE HARBOR.—
(1) IN
GENERAL.—Notwithstanding any other
provision of federal or state law, no renewable fuel, as
defined by this Act, used or intended to be used as a
motor vehicle fuel, nor any motor vehicle fuel con-
taining such renewable fuel, shall be deemed defective
in design or manufacture by virtue of the fact that it
is, or contains, such a renewable fuel, if it does not
violate a control or prohibition imposed by the Ad-
ministrator under section 211 of the Clean Air Act,
as amended by this Act, and the manufacturer is in
compliance with all requests for information under
section 211(b) of the Clean Air Act, as amended by
this Act. In the event that the safe harbor under this
section does not apply, the existence of a design defect
or manufacturing defect shall be determined under
otherwise applicable law.
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(2) EXCEPTIONS.—This subsection shall not
apply to ethers.
(3) EFFECTIVE DATE.—This subsection shall be
effective as of the date of enactment and shall apply
with respect to all claims filed on or after that date.
SEC. 820A. FEDERAL AGENCY ETHANOL-BLENDED GASO-
LINE AND BIODIESEL PURCHASING REQUIRE-
MENT.
Title III of the Energy Policy Act of 1992 is amended
by striking section 306 (42 U.S.C. 13215) and inserting the
following:
‘‘SEC. 306. FEDERAL AGENCY ETHANOL-BLENDED GASOLINE
AND BIODIESEL PURCHASING REQUIREMENT.
‘‘(a) ETHANOL-BLENDED GASOLINE.—The head of
each Federal agency shall ensure that, in areas in which
ethanol-blended gasoline is reasonably available at a gen-
erally competitive price, the Federal agency purchases eth-
anol-blended gasoline containing at least 10 percent ethanol
rather than nonethanol-blended gasoline, for use in vehicles
used by the agency that use gasoline.
‘‘(b) BIODIESEL.—
‘‘(1) DEFINITION OF BIODIESEL.—In this sub-
section, the term ‘biodiesel’ has the meaning given the
term in section 312(f).
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‘‘(2) REQUIREMENT.—The head of each Federal
agency shall ensure that the Federal agency pur-
chases, for use in fueling fleet vehicles that use diesel
fuel used by the Federal agency at the location at
which fleet vehicles of the Federal agency are centrally
fueled, in areas in which the biodiesel-blended diesel
fuel described in paragraphs (A) and (B) is available
at a generally competitive price—
‘‘(A) as of the date that is 5 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 2 per-
cent biodiesel, rather than nonbiodiesel-blended
diesel fuel; and
‘‘(B) as of the date that is 10 years after the
date of enactment of this paragraph, biodiesel-
blended diesel fuel that contains at least 20 per-
cent biodiesel, rather than nonbiodiesel-blended
diesel fuel.
‘‘(3) REQUIREMENT
OF FEDERAL LAW.—The
provisions of this subsection shall not be considered a
requirement of Federal law for the purposes of section
312.
‘‘(c) EXEMPTION.—This section does not apply to fuel
used in vehicles excluded from the definition of ‘fleet’ by
subparagraphs (A) through (H) of section 301(9).’’.
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SEC. 820B. 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 facili-
ties 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 avail-
able to the applicant under reasonable terms or condi-
tions sufficient to finance the construction of a facil-
ity described in subsection (b);
(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 account
the current average yield on outstanding obligations
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of the United States with remaining periods of matu-
rity comparable to the maturity of the loan.
(d) CRITERIA.—In selecting recipients of loan guaran-
tees from among applicants, the Secretary shall give pref-
erence 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.
(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 sub-
section (b) provide an assurance of repayment in the form
of a performance bond, insurance, collateral, or other means
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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 guarantee
made by the Secretary shall be conclusive evidence of the
eligibility of the loan for the guarantee with respect to prin-
cipal and interest. The validity of the guarantee shall be
incontestable in the hands of a holder of the guaranteed
loan.
(j) REPORTS.—Until each guaranteed loan under this
section has been repaid in full, the Secretary shall annually
submit to Congress an report on the activities of the Sec-
retary under this section.
(k) AUTHORIZATION OF APPROPRIATIONS.—There are
authorized to be appropriated such sums as are necessary
to carry out this section.
(l) TERMINATION OF AUTHORITY.—The authority of
the Secretary to issue a loan guarantee under subsection
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(b) terminates on the date that is 10 years after the date
of enactment of this Act.
Subtitle B—Additional Fuel
Efficiency Measures
SEC. 821. FUEL EFFICIENCY OF THE FEDERAL FLEET OF
AUTOMOBILES.
Section 32917 of title 49, United States Code, is
amended to read as follows:
‘‘§ 32917. Standards for executive agency automobiles
‘‘(a) BASELINE AVERAGE FUEL ECONOMY.—The head
of each executive agency shall determine, for all automobiles
in the agency’s fleet of automobiles that were leased or
bought as a new vehicle in fiscal year 1999, the average
fuel economy for such automobiles. For the purposes of this
section, the average fuel economy so determined shall be the
baseline average fuel economy for the agency’s fleet of auto-
mobiles.
‘‘(b) INCREASE OF AVERAGE FUEL ECONOMY.—The
head of an executive agency shall manage the procurement
of automobiles for that agency in such a manner that—
‘‘(1) not later than September 30, 2003, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 1 mile per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet; and
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‘‘(2) not later than September 30, 2005, the aver-
age fuel economy of the new automobiles in the agen-
cy’s fleet of automobiles is not less than 3 miles per
gallon higher than the baseline average fuel economy
determined under subsection (a) for that fleet.
‘‘(c) CALCULATION OF AVERAGE FUEL ECONOMY.—
Average fuel economy shall be calculated for the purposes
of this section in accordance with guidance which the Sec-
retary of Transportation shall prescribe for the implementa-
tion of this section.
‘‘(d) DEFINITIONS.—In this section:
‘‘(1) The term ‘automobile’ does not include any
vehicle designed for combat-related missions, law en-
forcement work, or emergency rescue work.
‘‘(2) The term ‘executive agency’ has the mean-
ing given that term in section 105 of title 5.
‘‘(3) The term ‘new automobile’, with respect to
the fleet of automobiles of an executive agency, means
an automobile that is leased for at least 60 consecu-
tive days or bought, by or for the agency, after Sep-
tember 30, 1999.’’.
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SEC. 822. IDLING REDUCTION SYSTEMS IN HEAVY DUTY VE-
HICLES.
Title III of the Energy Policy and Conservation Act
(42 U.S.C. 6291 et seq.) is amended by adding at the end
the following:
‘‘PART K—REDUCING TRUCK IDLING
‘‘SEC. 400AAA. REDUCING TRUCK IDLING.
‘‘(a) STUDY.—Not later than 18 months after the date
of enactment of this section, the Secretary shall, in consulta-
tion with the Secretary of Transportation, commence a
study to analyze the potential fuel savings resulting from
long duration idling of main drive engines in heavy-duty
vehicles.
‘‘(b) REGULATIONS.—Upon completion of the study
under subsection (a), the Secretary may issue regulations
requiring the installation of idling reduction systems on all
newly manufactured heavy-duty vehicles.
‘‘(c) DEFINITIONS.—As used in this section:
‘‘(1) The term ‘heavy-duty vehicle’ means a vehi-
cle that has a gross vehicle weight rating greater than
8,500 pounds and is powered by a diesel engine.
‘‘(2) The term ‘idling reduction system’ means a
device or system of devices used to reduce long dura-
tion idling of a diesel engine in a vehicle.
‘‘(3) The term ‘long duration idling’ means the
operation of a main drive engine of a heavy-duty ve-
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hicle for a period of more than 15 consecutive minutes
when the main drive engine is not engaged in gear,
except that such term does not include idling as a re-
sult of traffic congestion or other impediments to the
movement of a heavy-duty vehicle.
‘‘(4) The term ‘vehicle’ has the meaning given
such term in section 4 of title 1, United States
Code.’’.
SEC. 823. CONSERVE BY BICYCLING PROGRAM.
(a) ESTABLISHMENT.—The Secretary of Transpor-
tation shall establish a Conserve By Bicycling pilot pro-
gram that shall provide for up to 10 geographically dis-
persed projects to encourage the use of bicycles in place of
motor vehicles. Such projects shall use education and mar-
keting to convert motor vehicle trips to bike trips, document
project results and energy savings, and facilitate partner-
ships among entities in the fields of transportation, law en-
forcement, education, public health, environment, or energy.
At least 20 percent of the cost of each project shall be pro-
vided from State or local sources. Not later than 2 years
after implementation of the projects, the Secretary of Trans-
portation shall submit a report to Congress on the results
of the pilot program.
(b) NATIONAL ACADEMY STUDY.—The Secretary of
Transportation shall contract with the National Academy
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of Sciences to conduct a study on the feasibility and benefits
of converting motor vehicle trips to bicycle trips and to
issue a report, not later than 2 years after enactment of
this Act, on the findings of such study.
(c) AUTHORIZATION OF APPROPRIATIONS.—There is
authorized to be appropriated to the Secretary of’ Transpor-
tation $5,500,000, to remain available until expended, to
carry out the pilot program and study pursuant to this sec-
tion.
SEC. 824. FUEL CELL VEHICLE PROGRAM.
Not later than 1 year from date of enactment of this
section, the Secretary shall develop a program with time-
tables for developing technologies to enable at least 100,000
hydrogen-fueled fuel cell vehicles to be available for sale in
the United States by 2010 and at least 2.5 million of such
vehicles to be available by 2020 and annually thereafter.
The program shall also include timetables for development
of technologies to provide 50 million gasoline equivalent
gallons of hydrogen for sale in fueling stations in the United
States by 2010 and at least 2.5 billion gasoline equivalent
gallons by 2020 and annually thereafter. The Secretary
shall annually include a review of the progress toward meet-
ing the vehicle sales of Energy budget.
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Subtitle C—Federal Reformulated
Fuels
SEC. 831. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Reformu-
lated Fuels Act of 2002’’.
SEC. 832. LEAKING UNDERGROUND STORAGE TANKS.
(a) USE OF LUST FUNDS FOR REMEDIATION OF CON-
TAMINATION FROM ETHER FUEL ADDITIVES.—Section
9003(h) of the Solid Waste Disposal Act (42 U.S.C.
6991b(h)) is amended—
(1) in paragraph (7)(A)—
(A) by striking ‘‘paragraphs (1) and (2) of
this subsection’’ and inserting ‘‘paragraphs (1),
(2), and (12)’’; and
(B) by inserting ‘‘and section 9010’’ before
‘‘if’’; and
(2) by adding at the end the following:
‘‘(12) REMEDIATION
OF
CONTAMINATION
FROM
ETHER FUEL ADDITIVES.—
‘‘(A) IN GENERAL.—The Administrator and
the States may use funds made available under
section 9013(1) to carry out corrective actions
with respect to a release of methyl tertiary butyl
ether or other ether fuel additive that presents a
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threat to human health, welfare, or the environ-
ment.
‘‘(B) APPLICABLE
AUTHORITY.—Subpara-
graph (A) shall be carried out—
‘‘(i) in accordance with paragraph (2),
except that a release with respect to which
a corrective action is carried out under sub-
paragraph (A) shall not be required to be
from an underground storage tank; and
‘‘(ii) in the case of a State, in accord-
ance with a cooperative agreement entered
into by the Administrator and the State
under paragraph (7).’’.
(b) RELEASE PREVENTION AND COMPLIANCE.—Sub-
title I of the Solid Waste Disposal Act (42 U.S.C. 6991 et
seq.) is amended by striking section 9010 and inserting the
following:
‘‘SEC. 9010. RELEASE PREVENTION AND COMPLIANCE.
‘‘Funds made available under section 9013(2) from the
Leaking Underground Storage Tank Trust Fund may be
used for conducting inspections, or for issuing orders or
bringing actions under this subtitle—
‘‘(1) by a State (pursuant to section 9003(h)(7))
acting under—
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‘‘(A) a program approved under section
9004; or
‘‘(B) State requirements regulating under-
ground storage tanks that are similar or iden-
tical to this subtitle, as determined by the Ad-
ministrator; and
‘‘(2) by the Administrator, acting under this
subtitle or a State program approved under section
9004.
‘‘SEC. 9011. BEDROCK BIOREMEDIATION.
‘‘The Administrator shall establish, at an institution
of higher education (as defined in section 101 of the Higher
Education Act of 1965 (20 U.S.C. 1001)) with established
expertise in bioremediation of contaminated bedrock
aquifers, a resource center—
‘‘(1) to conduct research concerning bioremedi-
ation of methyl tertiary butyl ether in contaminated
underground aquifers, including contaminated bed-
rock; and
‘‘(2) to provide for States a technical assistance
clearinghouse for information concerning innovative
technologies for bioremediation described in para-
graph (1).
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‘‘SEC. 9012. SOIL REMEDIATION.
‘‘The Administrator may establish a program to con-
duct research concerning remediation of methyl tertiary
butyl ether contamination of soil, including granitic or vol-
canic soil.
‘‘SEC. 9013. AUTHORIZATION OF APPROPRIATIONS.
‘‘In addition to amounts made available under section
2007(f), there are authorized to be appropriated from the
Leaking Underground Storage Tank Trust Fund, notwith-
standing section 9508(c)(1) of the Internal Revenue Code
of 1986—
‘‘(1) 
to 
carry 
out 
section 
9003(h)(12),
$200,000,000 for fiscal year 2003, to remain available
until expended;
‘‘(2) to carry out section 9010—
‘‘(A) $50,000,000 for fiscal year 2003; and
‘‘(B) $30,000,000 for each of fiscal years
2004 through 2008;
‘‘(3) to carry out section 9011—
‘‘(A) $500,000 for fiscal year 2003; and
‘‘(B) $300,000 for each of fiscal years 2004
through 2008; and
‘‘(4) to carry out section 9012—
‘‘(A) $100,000 for fiscal year 2003; and
‘‘(B) $50,000 for each of fiscal years 2004
through 2008.
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(c) TECHNICAL AMENDMENTS.—(1) Section 1001 of
the Solid Waste Disposal Act (42 U.S.C. prec. 6901) is
amended by striking the item relating to section 9010 and
inserting the following:
‘‘Sec. 9010. Release prevention and compliance.
‘‘Sec. 9011. Bedrock bioremediation.
‘‘Sec. 9012. Soil remediation.
‘‘Sec. 9013. Authorization of appropriations.’’.
(2) Section 9001(3)(A) of the Solid Waste Disposal Act
(42 U.S.C. 6991(3)(A)) is amended by striking ‘‘sustances’’
and inserting ‘‘substances’’.
(3) Section 9003(f)(1) of the Solid Waste Disposal Act
(42 U.S.C. 6991b(f)(1)) is amended by striking ‘‘subsection
(c) and (d) of this section’’ and inserting ‘‘subsections (c)
and (d)’’.
(4) Section 9004(a) of the Solid Waste Disposal Act
(42 U.S.C. 6991c(a)) is amended in the second sentence by
striking ‘‘referred to’’ and all that follows and inserting ‘‘re-
ferred to in subparagraph (A) or (B), or both, of section
9001(2).’’.
(5) Section 9005 of the Solid Waste Disposal Act (42
U.S.C. 6991d) is amended—
(A) in subsection (a), by striking ‘‘study taking’’
and inserting ‘‘study, taking’’;
(B) in subsection (b)(1), by striking ‘‘relevent’’
and inserting ‘‘relevant’’; and
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(C) 
in 
subsection 
(b)(4), 
by 
striking
‘‘Evironmental’’ and inserting ‘‘Environmental’’.
SEC. 833. AUTHORITY FOR WATER QUALITY PROTECTION
FROM FUELS.
(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 oxygen
standard, Congress was aware that significant use of
MTBE could result from the adoption of that stand-
ard, and that the use of MTBE would likely be im-
portant to the cost-effective implementation of that
program;
(4) Congress is aware that gasoline and its com-
ponent additives have leaked from storage tanks, with
consequences for water quality;
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(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) when leaked or spilled into the environment,
MTBE may cause serious problems of drinking water
quality;
(7) in recent years, MTBE has been detected in
water sources throughout the United States;
(8) MTBE can be detected by smell and taste at
low concentrations;
(9) while small quantities of MTBE can render
water supplies unpalatable, the precise human health
effects of MTBE consumption at low levels are yet un-
known;
(10) in the report entitled ‘‘Achieving Clean Air
and Clean Water: The Report of the Blue Ribbon
Panel on Oxygenates in Gasoline’’ and dated Sep-
tember 1999, Congress was urged—
(A) to eliminate the fuel oxygenate stand-
ard;
(B) to greatly reduce use of MTBE; and
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(C) to maintain the environmental perform-
ance of reformulated gasoline;
(11) Congress has—
(A) reconsidered the relative value of MTBE
in gasoline; and
(B) decided to eliminate use of MTBE as a
fuel additive;
(12) the timeline for elimination of use of MTBE
as a fuel additive must be established in a manner
that achieves an appropriate balance among the goals
of—
(A) environmental protection;
(B) adequate energy supply; and
(C) reasonable fuel prices; and
(13) 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 created
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 elimi-
nation of a widely-used fuel additive.
(b) PURPOSES.—The purposes of this section are—
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(1) to eliminate use of MTBE as a fuel oxygen-
ate; and
(2) to provide assistance to merchant producers
of MTBE in making the transition from producing
MTBE to producing other fuel additives.
(c) AUTHORITY FOR WATER QUALITY PROTECTION
FROM FUELS.—Section 211(c) of the Clean Air Act (42
U.S.C. 7545(c)) is amended—
(1) in paragraph (1)(A)—
(A) by inserting ‘‘fuel or fuel additive or’’
after ‘‘Administrator any’’; and
(B) by striking ‘‘air pollution which’’ and
inserting ‘‘air pollution, or water pollution,
that’’;
(2) in paragraph (4)(B), by inserting ‘‘or water
quality protection,’’ after ‘‘emission control,’’; and
(3) by adding at the end the following:
‘‘(5) PROHIBITION ON USE OF MTBE.—
‘‘(A) IN
GENERAL.—Subject to subpara-
graph (E), not later than 4 years after the date
of enactment of this paragraph, the use of methyl
tertiary butyl ether in motor vehicle fuel in any
State other than a State described in subpara-
graph (C) is prohibited.
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‘‘(B) REGULATIONS.—The Administrator
shall promulgate regulations to effect the prohibi-
tion in subparagraph (A).
‘‘(C) STATES
THAT
AUTHORIZE
USE.—A
State described in this subparagraph is a State
that submits to the Administrator a notice that
the State authorizes use of methyl tertiary butyl
ether in motor vehicle fuel sold or used in the
State.
‘‘(D) PUBLICATION
OF
NOTICE.—The Ad-
ministrator shall publish in the Federal Register
each notice submitted by a State under subpara-
graph (C).
‘‘(E) TRACE QUANTITIES.—In carrying out
subparagraph (A), the Administrator may allow
trace quantities of methyl tertiary butyl ether,
not to exceed 0.5 percent by volume, to be present
in motor vehicle fuel in cases that the Adminis-
trator determines to be appropriate.
‘‘(6) MTBE MERCHANT PRODUCER CONVERSION
ASSISTANCE.—
‘‘(A) IN GENERAL.—
‘‘(i) GRANTS.—The Secretary of En-
ergy, in consultation with the Adminis-
trator, may make grants to merchant pro-
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ducers of methyl tertiary butyl ether in the
United States to assist the producers in the
conversion of eligible production facilities
described in subparagraph (C) to the pro-
duction of iso-octane and alkylates.
‘‘(ii) DETERMINATION.—The Adminis-
trator, in consultation with the Secretary of
Energy, may determine that transition as-
sistance for the production of iso-octane and
alkylates is inconsistent with the provisions
of subparagraph (B) and, on that basis,
may deny applications for grants author-
ized by this provision.
‘‘(B) FURTHER GRANTS.—The Secretary of
Energy, in consultation with the Administrator,
may also further make grants to merchant pro-
ducers of MTBE in the United States to assist
the producers in the conversion of eligible pro-
duction facilities described in subparagraph (C)
to the production of such other fuel additives
that, consistent with 211(c)—
‘‘(i) unless the Administrator deter-
mines that such fuel additives may reason-
ably be anticipated to endanger public
health or the environment;
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‘‘(ii) have been registered and have
been tested or are being tested in accordance
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 FACILITIES.—
A production facility shall be eligible to receive
a grant under this paragraph if the production
facility—
‘‘(i) is located in the United States;
and
‘‘(ii) produced methyl tertiary butyl
ether for consumption in nonattainment
areas during the period—
‘‘(I) beginning on the date of en-
actment of this paragraph; and
‘‘(II) ending on the effective date
of the prohibition on the use of methyl
tertiary butyl ether under paragraph
(5).
‘‘(D) 
AUTHORIZATION
OF
APPROPRIA-
TIONS.—There is authorized to be appropriated
to carry out this paragraph $250,000,000 for
each of fiscal years 2003 through 2005.’’.
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(d) NO EFFECT ON LAW CONCERNING STATE AUTHOR-
ITY.—The amendments made by subsection (c) have no ef-
fect on the law in effect on the day before the date of enact-
ment of this Act regarding the authority of States to limit
the use of methyl tertiary butyl ether in motor vehicle fuel.
SEC. 834. 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))’’;
(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
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(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 amendments
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—
(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 Novem-
ber 15, 1991,’’; and
(2) by adding at the end the following:
‘‘(B) MAINTENANCE OF TOXIC AIR POLLUT-
ANT
EMISSIONS
REDUCTIONS
FROM
REFORMU-
LATED GASOLINE.—
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‘‘(i) DEFINITIONS.—In this subpara-
graph the term ‘PADD’ means a Petroleum
Administration for Defense District.
‘‘(ii) REGULATIONS REGARDING EMIS-
SIONS
OF
TOXIC
AIR
POLLUTANTS.—Not
later than 270 days after the date of enact-
ment of this subparagraph, the Adminis-
trator shall establish, for each refinery or
importer (other than a refinery or importer
in a State that has received a waiver under
section 209(b) with regard to gasoline pro-
duced for use in that state), standards for
toxic air pollutants from use of the reformu-
lated gasoline produced or distributed by
the refinery or importer that maintain the
reduction of the average annual aggregate
emissions of toxic air pollutants for refor-
mulated gasoline produced or distributed by
the refinery or importer during calendar
years 1999 and 2000, determined on the
basis of data collected by the Administrator
with respect to the refinery or importer.
(iii) STANDARDS APPLICABLE TO SPE-
CIFIC REFINERIES OR IMPORTERS.—
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‘‘(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 importer
in the calendar year only to the extent
that the quantity is less than or equal
to the average annual quantity of re-
formulated gasoline produced or dis-
tributed by the refinery or importer
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 subject
to subclause (I) shall be subject to
standards for toxic air pollutants pro-
mulgated 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-
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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 enactment of
this subparagraph, and not later than
April 1 of each calendar year that be-
gins after that date of enactment, the
Administrator shall publish in the
Federal Register a report that specifies,
with respect to the previous 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 av-
erage annual aggregate emissions
of toxic air pollutants in each
PADD, based on retail survey
data or data from other appro-
priate sources.
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‘‘(II) EFFECT
OF
FAILURE
TO
MAINTAIN AGGREGATE TOXICS REDUC-
TIONS.—If, in any calendar year, the
reduction of the average annual aggre-
gate emissions of toxic air pollutants
in a PADD fails to meet or exceed the
reduction of the average annual aggre-
gate emissions of toxic air pollutants
in the PADD in calendar years 1999
and 2000, the Administrator, not later
than 90 days after the date of publica-
tion of the report for the calendar year
under subclause (I), shall—
‘‘(aa) identify, to the max-
imum extent practicable, the rea-
sons for the failure, including the
sources, volumes, and characteris-
tics of reformulated gasoline that
contributed to the failure; and
‘‘(bb) promulgate revisions to
the regulations promulgated under
clause (ii), to take effect not ear-
lier than 180 days but not later
than 270 days after the date of
promulgation, to provide that,
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notwithstanding clause (iii)(II),
all reformulated gasoline produced
or distributed at each refinery or
importer shall meet the standards
applicable under clause (iii) not
later than April 1 of the year fol-
lowing the report in subclause (II)
and for subsequent years.
‘‘(vi) REGULATIONS TO CONTROL HAZ-
ARDOUS AIR POLLUTANTS FROM MOTOR VE-
HICLES AND MOTOR VEHICLE FUELS.—Not
later than July 1, 2004, the Administrator
shall promulgate final regulations to control
hazardous air pollutants from motor vehi-
cles and motor vehicle fuels, as provided for
in section 80.1045 of title 40, Code of Fed-
eral Regulations (as 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 consolidate
the regulations applicable to VOC-Control Regions 1 and
2 under section 80.41 of that title by eliminating the less
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stringent requirements applicable to gasoline designated for
VOC-Control Region 2 and instead applying the more strin-
gent requirements applicable to gasoline designated for
VOC-Control Region 1.
(d) SAVINGS CLAUSE.—Nothing in this section is in-
tended to affect or prejudice any legal claims or actions
with respect to regulations promulgated by the Adminis-
trator prior to enactment of this Act regarding emissions
of toxic air pollutants from motor vehicles.
(e) DETERMINATION
REGARDING
A
STATE
PETI-
TION.—Section 211(k) of the Clean Air Act (42 U.S.C.
7545(k)) is amended by inserting after paragraph (10) the
following:
‘‘(11) DETERMINATION REGARDING A STATE PE-
TITION.—
‘‘(A) IN
GENERAL.—Notwithstanding any
other provision of this section, not less than 30
days after enactment of this paragraph the Ad-
ministrator must determine the adequacy of any
petition received from a Governor of a State to
exempt gasoline sold in that State from the re-
quirements of paragraph (2)(B).
‘‘(B) APPROVAL.—If the determination in
(A) is not made within thirty days of enactment
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of this paragraph, the petition shall be deemed
approved.’’.
SEC. 835. PUBLIC HEALTH AND ENVIRONMENTAL IMPACTS
OF FUELS AND FUEL ADDITIVES.
Section 211(b) of the Clean Air Act (42 U.S.C.
7545(b)) is amended—
(1) in paragraph (2)—
(A) by striking ‘‘may also’’ and inserting
‘‘shall, on a regular basis,’’; and
(B) by striking subparagraph (A) and in-
serting the following:
‘‘(A) to conduct tests to determine potential
public health and environmental effects of the
fuel 
or 
additive 
(including 
carcinogenic,
teratogenic, or mutagenic effects); and’’; and
(2) by adding at the end the following:
‘‘(4) STUDY ON CERTAIN FUEL ADDITIVES AND
BLENDSTOCKS.—
‘‘(A) IN GENERAL.—Not later than 2 years
after the date of enactment of this paragraph, the
Administrator shall—
‘‘(i) conduct a study on the effects on
public health, air quality, and water re-
sources of increased use of, and the feasi-
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bility of using as substitutes for methyl ter-
tiary butyl ether in gasoline—
‘‘(I) ethyl tertiary butyl ether;
‘‘(II) tertiary amyl methyl ether;
‘‘(III) di-isopropyl ether;
‘‘(IV) tertiary butyl alcohol;
‘‘(V) other ethers and heavy alco-
hols, as determined by then Adminis-
trator;
‘‘(VI) ethanol;
‘‘(VII) iso-octane; and
‘‘(VIII) alkylates; and
‘‘(ii) conduct a study on the effects on
public health, air quality, and water re-
sources of the adjustment for ethanol-blend-
ed reformulated gasoline to the VOC per-
formance requirements otherwise applicable
under sections 211(k)(1) and 211(k)(3) of
the Clean Air Act.
‘‘(iii) submit to the Committee on En-
vironment and Public Works of the Senate
and the Committee on Energy and Com-
merce of the House of Representatives a re-
port describing the results of these studies.
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‘‘(B) CONTRACTS FOR STUDY.—In carrying
out this paragraph, the Administrator may enter
into one or more contracts with nongovernmental
entities including but not limited to National
Energy Laboratories and institutions of higher
education (as defined in section 101 of the High-
er Education Act of 1965 (20 U.S.C. 1001)).’’.
SEC. 836. ANALYSES OF MOTOR VEHICLE FUEL CHANGES.
Section 211 of the Clean Air Act (42 U.S.C. 7545) (as
amended by section 820(a)) is amended by inserting after
subsection (o) the following:
‘‘(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 public
comment a draft analysis of the changes in emis-
sions of air pollutants and air quality due to the
use of motor vehicle fuel and fuel additives re-
sulting from implementation of the amendments
made by the Federal Reformulated Fuels Act of
2002.
‘‘(B) FINAL ANALYSIS.—After providing a
reasonable opportunity for comment but not
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later than 5 years after the date of enactment of
this paragraph, the Administrator shall publish
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 ef-
fects of gasoline characteristics or components on
emissions from vehicles in the motor vehicle fleet dur-
ing calendar year 2005.’’.
SEC. 837. ADDITIONAL OPT-IN AREAS UNDER REFORMU-
LATED GASOLINE PROGRAM.
Section 211(k)(6) of the Clean Air Act (42 U.S.C.
7545(k)(6)) is amended—
(1) by striking ‘‘(6) OPT-IN AREAS.—(A) Upon’’
and inserting the following:
‘‘(6) OPT-IN AREAS.—
‘‘(A) CLASSIFIED AREAS.—
‘‘(i) IN GENERAL.—Upon’’;
(2) in subparagraph (B), by striking ‘‘(B) If’’
and inserting the following:
‘‘(ii) EFFECT
OF
INSUFFICIENT
DO-
MESTIC CAPACITY TO PRODUCE REFORMU-
LATED GASOLINE.—If’’;
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(3) in subparagraph (A)(ii) (as redesignated by
paragraph (2))—
(A) in the first sentence, by striking ‘‘sub-
paragraph (A)’’ and inserting ‘‘clause (i)’’; and
(B) in the second sentence, by striking ‘‘this
paragraph’’ and inserting ‘‘this subparagraph’’;
and
(4) by adding at the end the following:
‘‘(B) OZONE TRANSPORT REGION.—
‘‘(i) APPLICATION OF PROHIBITION.—
‘‘(I) IN GENERAL.—In addition to
the provisions of subparagraph (A),
upon the application of the Governor
of a State in the ozone transport re-
gion established by section 184(a), the
Administrator, not later than 180 days
after the date of receipt of the applica-
tion, shall apply the prohibition speci-
fied in paragraph (5) to any area in
the State (other than an area classified
as a marginal, moderate, serious, or se-
vere ozone nonattainment area under
subpart 2 of part D of title I) unless
the Administrator determines under
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clause (iii) that there is insufficient ca-
pacity to supply reformulated gasoline.
‘‘(II) PUBLICATION
OF
APPLICA-
TION.—As soon as practicable after the
date of receipt of an application under
subclause (I), the Administrator shall
publish the application in the Federal
Register.
‘‘(ii) PERIOD
OF
APPLICABILITY.—
Under clause (i), the prohibition specified
in paragraph (5) shall apply in a State—
‘‘(I) commencing as soon as prac-
ticable but not later than 2 years after
the date of approval by the Adminis-
trator of the application of the Gov-
ernor of the State; and
‘‘(II) ending not earlier than 4
years after the commencement date de-
termined under subclause (I).
‘‘(iii) EXTENSION OF COMMENCEMENT
DATE BASED ON INSUFFICIENT CAPACITY.—
‘‘(I) IN
GENERAL.—If, after re-
ceipt of an application from a Gov-
ernor of a State under clause (i), the
Administrator determines, on the Ad-
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ministrator’s own motion or on peti-
tion of any person, after consultation
with the Secretary of Energy, that
there is insufficient capacity to supply
reformulated gasoline, the Adminis-
trator, by regulation—
‘‘(aa) shall extend the com-
mencement date with respect to
the State under clause (ii)(I) for
not more than 1 year; and
‘‘(bb) may renew the exten-
sion under item (aa) for two ad-
ditional periods, each of which
shall not exceed 1 year.
‘‘(II) DEADLINE FOR ACTION ON
PETITIONS.—The Administrator shall
act on any petition submitted under
subclause (I) not later than 180 days
after the date of receipt of the peti-
tion.’’.
SEC. 838. FEDERAL ENFORCEMENT OF STATE FUELS RE-
QUIREMENTS.
Section 211(c)(4)(C) of the Clean Air Act (42 U.S.C.
7545(c)(4)(C)) is amended—
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(1) by striking ‘‘(C) A State’’ and inserting the
following:
‘‘(C) AUTHORITY
OF
STATE
TO
CONTROL
FUELS AND FUEL ADDITIVES FOR REASONS OF
NECESSITY.—
‘‘(i) IN GENERAL.—A State’’; and
(2) by adding at the end the following:
‘‘(ii) ENFORCEMENT BY THE ADMINIS-
TRATOR.—In any case in which a State
prescribes and enforces a control or prohibi-
tion under clause (i), the Administrator, at
the request of the State, shall enforce the
control or prohibition as if the control or
prohibition had been adopted under the
other provisions of this section.’’.
SEC. 839. FUEL SYSTEM REQUIREMENTS HARMONIZATION
STUDY.
(a) STUDY.—
(1) IN GENERAL.—The Administrator of the En-
vironmental Protection Agency and the Secretary of
Energy shall jointly conduct a study of Federal,
State, and local requirements concerning motor vehi-
cle fuels, including—
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(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 requirements
described in paragraph (1) on the supply, qual-
ity, and price of motor vehicle fuels available to
the consumer;
(B) the effect of the requirements described
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 multiple
motor vehicle fuel requirements, on—
(i) domestic refineries;
(ii) the fuel distribution system; and
(iii) industry investment in new ca-
pacity;
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(D) the effect of the requirements described
in paragraph (1) on emissions from vehicles, re-
fineries, and fuel handling facilities;
(E) the feasibility of developing national or
regional motor vehicle fuel slates for the 48 con-
tiguous States that, while protecting and im-
proving air quality at the national, regional,
and local levels, could—
(i) enhance flexibility in the fuel dis-
tribution infrastructure and improve fuel
fungibility;
(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; and
(F) the feasibility of providing incentives,
and the need for the development of national
standards necessary, to promote cleaner burning
motor vehicle fuel.
(b) REPORT.—
(1) IN GENERAL.—Not later than June 1, 2006,
the Administrator of the Environmental Protection
Agency and the Secretary of Energy shall submit to
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fiscal year 2000, by the percentage specified in the
following table:
‘‘Fiscal Year
Percentage reduction
2002 ............................................................................................
2003 ............................................................................................
2004 ............................................................................................
2005 ............................................................................................
2006 ............................................................................................
2007 ............................................................................................
2008 ............................................................................................
2009 ............................................................................................
2010 ............................................................................................
2011 ............................................................................................
20.’’.
(b) REVIEW AND REVISION OF ENERGY PERFORMANCE
REQUIREMENT.—Section 543(a) of the National Energy
Conservation Policy Act (42 U.S.C. 8253(a)) is further
amended by adding at the end the following:
‘‘(3) Not later than December 31, 2010, the Sec-
retary shall review the results of the implementation
of the energy performance requirement established
under paragraph (1) and submit to Congress rec-
ommendations concerning energy performance re-
quirements for calendar years 2012 through 2021.’’.
(c) EXCLUSIONS.—Section 543(c)(1) of the National
Energy Conservation Policy Act (42 U.S.C. 8253(c)(1)) is
amended to read as follows:
‘‘(1)(A) An agency may exclude, from the energy
performance requirement for a calendar year estab-
lished under subsection (a) and the energy manage-
ment requirement established under subsection (b),
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(c) ADVISORY COMMITTEE.—
(1) ESTABLISHMENT.—Not later than 30 days
after the date of enactment of this section, the Sec-
retary shall establish an advisory committee to be
known as the ‘‘Ultra-Deepwater and Unconventional
Resource Technology Advisory Committee’’.
(2) MEMBERSHIP.—
(A) COMPOSITION.—Subject to subpara-
graph (B), the advisory committee shall be com-
posed of seven members appointed by the Sec-
retary that—
(i) have extensive operational knowl-
edge of and experience in the natural gas
and other petroleum exploration and pro-
duction industry; and
(ii) are not Federal employees or em-
ployees of contractors to a Federal agency.
(B) EXPERTISE.—Of the members of the ad-
visory committee appointed under subparagraph
(A)—
(i) at least four members shall have ex-
tensive knowledge of ultra-deepwater re-
source exploration and production tech-
nologies;
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‘‘(T) to pursue a long-term climate tech-
nology strategy designed to demonstrate a vari-
ety of technologies by which stabilization of
greenhouse gases might be best achieved, includ-
ing accelerated research, development, dem-
onstration and deployment of—
‘‘(i) renewable energy systems;
‘‘(ii) advanced fossil energy technology;
‘‘(iii) advanced nuclear power plant
design;
‘‘(iv) fuel cell technology for residen-
tial, industrial and transportation applica-
tions;
‘‘(v) carbon sequestration practices and
technologies, including agricultural and for-
estry practices that store and sequester car-
bon;
‘‘(vi) efficient electrical generation,
transmission and distribution technologies;
and
‘‘(vii) efficient end use energy tech-
nologies.’’.