431
(1) COST
AND
PERFORMANCE
GOALS.—The
term ‘‘cost and performance goals’’ means the cost
and performance goals established under section
5004.
(2) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Energy.
SEC. 5003. CLEAN COAL POWER INITIATIVE.
(a) IN GENERAL.—The Secretary shall carry out a
program under—
(1) this division;
(2) the Federal Nonnuclear Energy Research
and Development Act of 1974 (42 U.S.C. 5901 et
seq.);
(3) the Energy Reorganization Act of 1974 (42
U.S.C. 5801 et seq.); and
(4) title XIII of the Energy Policy Act of 1992
(42 U.S.C. 13331 et seq.),
to achieve cost and performance goals established by the
Secretary under section 5004.
SEC. 5004. COST AND PERFORMANCE GOALS.
(a) REVIEW AND ASSESSMENT.—The Secretary shall
perform an assessment that establishes measurable cost
and performance goals for 2005, 2010, 2015, and 2020
for the programs authorized by this division. Such assess-
432
ment shall be based on the latest scientific, economic, and
technical knowledge.
(b) CONSULTATION.—In establishing the cost and
performance goals, the Secretary shall consult with rep-
resentatives of—
(1) the United States coal industry;
(2) State coal development agencies;
(3) the electric utility industry;
(4) railroads and other transportation indus-
tries;
(5) manufacturers of advanced coal-based
equipment;
(6) institutions of higher learning, national lab-
oratories, and professional and technical societies;
(7) organizations representing workers;
(8) organizations formed to—
(A) promote the use of coal;
(B) further the goals of environmental pro-
tection; and
(C) promote the production and generation
of coal-based power from advanced facilities;
and
(9) other appropriate Federal and State agen-
cies.
(c) TIMING.—The Secretary shall—
433
(1) not later than 120 days after the date of
enactment of this Act, issue a set of draft cost and
performance goals for public comment; and
(2) not later than 180 days after the date of
enactment of this Act, after taking into consider-
ation any public comments received, submit to the
Committee on Energy and Commerce and the Com-
mittee on Science of the House of Representatives,
and to the Senate, the final cost and performance
goals.
SEC. 5005. AUTHORIZATION OF APPROPRIATIONS.
(a) CLEAN COAL POWER INITIATIVE.—Except as
provided in subsection (c), there are authorized to be ap-
propriated to the Secretary to carry out the Clean Coal
Power Initiative under section 5003 $200,000,000 for
each of the fiscal years 2002 through 2011, to remain
available until expended.
(b) LIMIT ON USE OF FUNDS.—Notwithstanding sub-
section (a), no funds may be used to carry out the activi-
ties authorized by this Act after September 30, 2002, un-
less the Secretary has transmitted to the Committee on
Energy and Commerce and the Committee on Science of
the House of Representatives, and to the Senate, the re-
port required by this subsection and 1 month has elapsed
434
since that transmission. The report shall include, with re-
spect to subsection (a), a 10-year plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are
the appropriate funding levels for that program;
(2) a detailed description of how proposals will
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken;
(3) a detailed list of technical milestones for
each coal and related technology that will be pur-
sued;
(4) recommendations for a mechanism for
recoupment of Federal funding for successful com-
mercial projects; and
(5) a detailed description of how the program
will avoid problems enumerated in General Account-
ing Office reports on the Clean Coal Technology
Program, including problems that have resulted in
unspent funds and projects that failed either finan-
cially or scientifically.
(c) APPLICABILITY.—Subsection (b) shall not apply
to any project begun before September 30, 2002.
SEC. 5006. PROJECT CRITERIA.
(a) IN GENERAL.—The Secretary shall not provide
funding under this division for any project that does not
435
advance efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in operation or have been demonstrated as of the date
of the enactment of this Act.
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER
INITIATIVE.—
(1) GASIFICATION.—(A) In allocating the funds
authorized under section 5005(a), the Secretary
shall ensure that at least 80 percent of the funds are
used only for projects on coal-based gasification
technologies, including gasification combined cycle,
gasification fuel cells, gasification coproduction and
hybrid gasification/combustion.
(B) The Secretary shall set technical milestones
specifying emissions levels that coal gasification
projects must be designed to and reasonably ex-
pected to achieve. The milestones shall get more re-
strictive through the life of the program. The mile-
stones shall be designed to achieve by 2020 coal gas-
ification projects able—
(i) to remove 99 percent of sulfur dioxide;
(ii) to emit no more than .05 lbs of NOx
per million BTU;
(iii) to achieve substantial reductions in
mercury emissions; and
436
(iv) to achieve a thermal efficiency of 60
percent (higher heating value).
(2) OTHER PROJECTS.—For projects not de-
scribed in paragraph (1), the Secretary shall set
technical milestones specifying emissions levels that
the projects must be designed to and reasonably ex-
pected to achieve. The milestones shall get more re-
strictive through the life of the program. The mile-
stones shall be designed to achieve by 2010 projects
able—
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx
per million BTU;
(C) to achieve substantial reductions in
mercury emissions; and
(D) to achieve a thermal efficiency of 45
percent (higher heating value).
(c) FINANCIAL CRITERIA.—The Secretary shall not
provide a funding award under this division unless the re-
cipient has documented to the satisfaction of the Secretary
that—
(1) the award recipient is financially viable
without the receipt of additional Federal funding;
(2) the recipient will provide sufficient informa-
tion to the Secretary for the Secretary to ensure
437
that the award funds are spent efficiently and effec-
tively; and
(3) a market exists for the technology being
demonstrated or applied, as evidenced by statements
of interest in writing from potential purchasers of
the technology.
(d) FEDERAL SHARE.—The Federal share of the cost
of a coal or related technology project funded by the Sec-
retary shall not exceed 50 percent.
(e) APPLICABILITY.—Neither the use of any par-
ticular technology, nor the achievement of any emission
reduction, by any facility receiving assistance under this
title shall be taken into account for purposes of making
any determination under the Clean Air Act in applying
the provisions of that Act to a facility not receiving assist-
ance under this title, including any determination con-
cerning new source performance standards, lowest achiev-
able emission rate, best available control technology, or
any other standard, requirement, or limitation.
SEC. 5007. STUDY.
(a) IN GENERAL.—Not later than 1 year after the
date of enactment of this Act, and once every 2 years
thereafter through 2016, the Secretary, in cooperation
with other appropriate Federal agencies, shall transmit to
the Committee on Energy and Commerce and the Com-
438
mittee on Science of the House of Representatives, and
to the Senate, a report containing the results of a study
to—
(1) identify efforts (and the costs and periods
of time associated with those efforts) that, by them-
selves or in combination with other efforts, may be
capable of achieving the cost and performance goals;
(2) develop recommendations for the Depart-
ment of Energy to promote the efforts identified
under paragraph (1); and
(3) develop recommendations for additional au-
thorities required to achieve the cost and perform-
ance goals.
(b) EXPERT ADVICE.—In carrying out this section,
the Secretary shall give due weight to the expert advice
of representatives of the entities described in section
5004(b).
DIVISION F
SEC. 6001. SHORT TITLE.
This division may be cited as the ‘‘Energy Security
Act’’.
439
TITLE 
I—GENERAL 
PROTEC-
TIONS FOR ENERGY SUPPLY
AND SECURITY
SEC. 6101. STUDY OF EXISTING RIGHTS-OF-WAY ON FED-
ERAL LANDS TO DETERMINE CAPABILITY TO
SUPPORT NEW PIPELINES OR OTHER TRANS-
MISSION FACILITIES.
(a) IN GENERAL.—Within one year after the date of
enactment of this Act, the head of each Federal agency
that has authorized a right-of-way across Federal lands
for transportation of energy supplies or transmission of
electricity shall review each such right-of-way and submit
a report to the Secretary of Energy and the Chairman
of 
the 
Federal 
Energy 
Regulatory 
Commission
regarding—
(1) whether the right-of-way can be used to
support new or additional capacity; and
(2) what modifications or other changes, if any,
would be necessary to accommodate such additional
capacity.
(b) CONSULTATIONS AND CONSIDERATIONS.—In per-
forming the review, the head of each agency shall—
(1) consult with agencies of State, tribal, or
local units of government as appropriate; and
440
(2) consider whether safety or other concerns
related to current uses might preclude the avail-
ability of a right-of-way for additional or new trans-
portation or transmission facilities, and set forth
those considerations in the report.
SEC. 6102. INVENTORY OF ENERGY PRODUCTION POTEN-
TIAL OF ALL FEDERAL PUBLIC LANDS.
(a) INVENTORY REQUIREMENT.—The Secretary of
the Interior, in consultation with the Secretary of Agri-
culture and the Secretary of Energy, shall conduct an in-
ventory of the energy production potential of all Federal
public lands other than national park lands and lands in
any wilderness area, with respect to wind, solar, coal, and
geothermal power production.
(b) LIMITATIONS.—
(1) IN GENERAL.—The Secretary shall not in-
clude in the inventory under this section the matters
to be identified in the inventory under section 604
of the Energy Act of 2000 (42 U.S.C. 6217).
(2) WIND AND SOLAR POWER.—The inventory
under this section—
(A) with respect to wind power production
shall be limited to sites having a mean average
wind speed—
441
(i) exceeding 12.5 miles per hour at a
height of 33 feet; and
(ii) exceeding 15.7 miles per hour at
a height of 164 feet; and
(B) with respect to solar power production
shall be limited to areas rated as receiving 450
watts per square meter or greater.
(c) EXAMINATION OF RESTRICTIONS AND IMPEDI-
MENTS.—The inventory shall identify the extent and na-
ture of any restrictions or impediments to the development
of such energy production potential.
(d) GEOTHERMAL POWER.—The inventory shall in-
clude an update of the 1978 Assessment of Geothermal
Resources by the United States Geological Survey.
(e) COMPLETION AND UPDATING.—The Secretary—
(1) shall complete the inventory by not later
than 2 years after the date of the enactment of this
Act; and
(2) shall update the inventory regularly there-
after.
(f) REPORTS.—The Secretary shall submit to the
Committee on Resources of the House of Representatives
and to the Committee on Energy and Natural Resources
of the Senate and make publicly available—
442
(1) a report containing the inventory under this
section, by not later than 2 years after the effective
date of this section; and
(2) each update of such inventory.
SEC. 6103. REVIEW OF REGULATIONS TO ELIMINATE BAR-
RIERS TO EMERGING ENERGY TECHNOLOGY.
(a) IN GENERAL.—Each Federal agency shall carry
out a review of its regulations and standards to determine
those that act as a barrier to market entry for emerging
energy-efficient technologies, including fuel cells, combined
heat and power, and distributed generation (including
small-scale renewable energy).
(b) REPORT
TO CONGRESS.—No later than 18
months after date of enactment of this Act, each agency
shall provide a report to the Congress and the President
detailing all regulatory barriers to emerging energy-effi-
cient technologies, along with actions the agency intends
to take, or has taken, to remove such barriers.
(c) PERIODIC REVIEW.—Each agency shall subse-
quently review its regulations and standards in this man-
ner no less frequently than every 5 years, and report their
findings to the Congress and the President. Such reviews
shall include a detailed analysis of all agency actions taken
to remove existing barriers to emerging energy tech-
nologies.
443
SEC. 
6104. 
INTERAGENCY 
AGREEMENT 
ON 
ENVIRON-
MENTAL REVIEW OF INTERSTATE NATURAL
GAS PIPELINE PROJECTS.
(a) IN GENERAL.—The Secretary of Energy, in co-
ordination with the Federal Energy Regulatory Commis-
sion, shall establish an administrative interagency task
force to develop an interagency agreement to expedite and
facilitate the environmental review and permitting of
interstate natural gas pipeline projects.
(b) TASK FORCE MEMBERS.—The task force shall in-
clude a representative of each of the Bureau of Land Man-
agement, the United States Fish and Wildlife Service, the
Army Corps of Engineers, the Forest Service, the Envi-
ronmental Protection Agency, the Advisory Council on
Historic Preservation, and such other agencies as the Sec-
retary of Energy and the Federal Energy Regulatory
Commission consider appropriate.
(c) TERMS OF AGREEMENT.—The interagency agree-
ment shall require that agencies complete their review of
interstate pipeline projects within a specific period of time
after referral of the matter by the Federal Energy Regu-
latory Commission.
(d) SUBMITTAL OF AGREEMENT.—The Secretary of
Energy shall submit a final interagency agreement under
this section to the Congress by not later than 6 months
after the effective date of this section.
444
SEC. 6105. ENHANCING ENERGY EFFICIENCY IN MANAGE-
MENT OF FEDERAL LANDS.
(a) SENSE OF THE CONGRESS.—It is the sense of
Congress that Federal land managing agencies should en-
hance the use of energy efficient technologies in the man-
agement of natural resources.
(b) ENERGY EFFICIENT BUILDINGS.—To the extent
economically practicable, the Secretary of the Interior and
the Secretary of Agriculture shall seek to incorporate en-
ergy efficient technologies in public and administrative
buildings associated with management of the National
Park System, National Wildlife Refuge System, National
Forest System, and other public lands and resources man-
aged by such Secretaries.
(c) ENERGY EFFICIENT VEHICLES.—To the extent
economically practicable, the Secretary of the Interior and
the Secretary of Agriculture shall seek to use energy effi-
cient motor vehicles, including vehicles equipped with bio-
diesel or hybrid engine technologies, in the management
of the National Park System, National Wildlife Refuge
System, and other public lands and managed by the Secre-
taries.
445
TITLE II—OIL AND GAS
DEVELOPMENT
Subtitle A—Offshore Oil and Gas
SEC. 6201. SHORT TITLE.
This subtitle may be referred to as the ‘‘Royalty Re-
lief Extension Act of 2001’’.
SEC. 6202. LEASE SALES IN WESTERN AND CENTRAL PLAN-
NING AREA OF THE GULF OF MEXICO.
(a) IN GENERAL.—For all tracts located in water
depths of greater than 200 meters in the Western and
Central Planning Area of the Gulf of Mexico, including
that portion of the Eastern Planning Area of the Gulf of
Mexico encompassing whole lease blocks lying west of 87
degrees, 30 minutes West longitude, any oil or gas lease
sale under the Outer Continental Shelf Lands Act occur-
ring within 2 years after the date of enactment of this
Act shall use the bidding system authorized in section
8(a)(1)(H) of the Outer Continental Shelf Lands Act (30
U.S.C. 1337(a)(1)(H)), except that the suspension of roy-
alties shall be set at a volume of not less than the fol-
lowing:
(1) 5 million barrels of oil equivalent for each
lease in water depths of 400 to 800 meters.
(2) 9 million barrels of oil equivalent for each
lease in water depths of 800 to 1,600 meters.
446
(3) 12 million barrels of oil equivalent for each
lease in water depths greater than 1,600 meters.
(b) RELATIONSHIP TO EXISTING AUTHORITY.—Ex-
cept as expressly provided in this section, nothing in this
section is intended to limit the authority of the Secretary
of the Interior under the Outer Continental Shelf Lands
Act (43 U.S.C. 1301 et seq.) to provide royalty suspen-
sion.
SEC. 6203. SAVINGS CLAUSE.
Nothing in this subtitle shall be construed to affect
any offshore pre-leasing, leasing, or development morato-
rium, including any moratorium applicable to the Eastern
Planning Area of the Gulf of Mexico located off the Gulf
Coast of Florida.
SEC. 6204. ANALYSIS OF GULF OF MEXICO FIELD SIZE DIS-
TRIBUTION, INTERNATIONAL COMPETITIVE-
NESS, AND INCENTIVES FOR DEVELOPMENT.
(a) IN GENERAL.—The Secretary of the Interior and
the Secretary of Energy shall enter into appropriate ar-
rangements with the National Academy of Sciences to
commission the Academy to perform the following:
(1) Conduct an analysis and review of existing
Gulf of Mexico oil and natural gas resource assess-
ments, including—
447
(A) analysis and review of assessments re-
cently performed by the Minerals Management
Service, the 1999 National Petroleum Council
Gas Study, the Department of Energy’s Off-
shore Marginal Property Study, and the Ad-
vanced Resources International, Inc. Deepwater
Gulf of Mexico model; and
(B) evaluation and comparison of the accu-
racy of assumptions of the existing assessments
with respect to resource field size distribution,
hydrocarbon potential, and scenarios for leas-
ing, exploration, and development.
(2) Evaluate the lease terms and conditions of-
fered by the Minerals Management Service for Lease
Sale 178, and compare the financial incentives of-
fered by such terms and conditions to financial in-
centives offered by the terms and conditions that
apply under leases for other offshore areas that are
competing for the same limited offshore oil and gas
exploration and development capital, including off-
shore areas of West Africa and Brazil.
(3) Recommend what level of incentives for all
water depths are appropriate in order to ensure that
the United States optimizes the domestic supply of
oil and natural gas from the offshore areas of the
448
Gulf of Mexico that are not subject to current leas-
ing moratoria. Recommendations under this para-
graph should be made in the context of the impor-
tance of the oil and natural gas resources of the
Gulf of Mexico to the future energy and economic
needs of the United States.
(b) REPORT.—Not later than 180 days after the date
of enactment of this Act, the Secretary of the Interior
shall submit a report to the Committee on Resources in
the House of Representatives and the Committee on En-
ergy and Natural Resources in the Senate, summarizing
the findings of the National Academy of Sciences pursuant
to subsection (a) and providing recommendations of the
Secretary for new policies or other actions that could help
to further increase oil and natural gas production from
the Gulf of Mexico.
Subtitle B—Improvements to
Federal Oil and Gas Management
SEC. 6221. SHORT TITLE.
This subtitle may be cited as the ‘‘Federal Oil and
Gas Lease Management Improvement Demonstration Pro-
gram Act of 2001’’.
449
SEC. 6222. STUDY OF IMPEDIMENTS TO EFFICIENT LEASE
OPERATIONS.
(a) IN GENERAL.—The Secretary of the Interior and
the Secretary of Agriculture shall jointly undertake a
study of the impediments to efficient oil and gas leasing
and operations on Federal onshore lands in order to iden-
tify means by which unnecessary impediments to the expe-
ditious exploration and production of oil and natural gas
on such lands can be removed.
(b) CONTENTS.—The study under subsection (a)
shall include the following:
(1) A review of the process by which Federal
land managers accept or reject an offer to lease, in-
cluding the timeframes in which such offers are
acted upon, the reasons for any delays in acting
upon such offers, and any recommendations for ex-
pediting the response to such offers.
(2) A review of the approval process for appli-
cations for permits to drill, including the timeframes
in which such applications are approved, the impact
of compliance with other Federal laws on such time-
frames, any other reasons for delays in making such
approvals, and any recommendations for expediting
such approvals.
(3) A review of the approval process for surface
use plans of operation, including the timeframes in
450
which such applications are approved, the impact of
compliance with other Federal laws on such time-
frames, any other reasons for delays in making such
approvals, and any recommendations for expediting
such approvals.
(4) A review of the process for administrative
appeal of decisions or orders of officers or employees
of the Bureau of Land Management with respect to
a Federal oil or gas lease, including the timeframes
in which such appeals are heard and decided, any
reasons for delays in hearing or deciding such ap-
peals, and any recommendations for expediting the
appeals process.
(c) REPORT.—The Secretaries shall report the find-
ings and recommendations resulting from the study re-
quired by this section to the Committee on Resources of
the House of Representatives and to the Committee on
Energy and Natural Resources of the Senate no later than
6 months after the date of the enactment of this Act.
SEC. 6223. ELIMINATION OF UNWARRANTED DENIALS AND
STAYS.
(a) IN GENERAL.—The Secretary shall ensure that
unwarranted denials and stays of lease issuance and un-
warranted restrictions on lease operations are eliminated
451
from the administration of oil and natural gas leasing on
Federal land.
(b) LAND DESIGNATED FOR MULTIPLE USE.—Fed-
eral land available for oil and natural gas leasing under
any Bureau of Land Management resource management
plan or Forest Service leasing analysis shall be available
without lease stipulations more stringent than restrictions
on surface use and operations imposed under the laws (in-
cluding regulations) of the oil and natural gas conserva-
tion authority of the State in which the lands are located,
unless the Secretary includes in the decision approving the
management plan or leasing analysis or in the Secretary’s
acceptance of an offer to lease a written explanation why
more stringent stipulations are warranted.
(c) REJECTION OF OFFER TO LEASE.—
(1) IN GENERAL.—If the Secretary rejects an
offer to lease Federal lands for oil or natural gas de-
velopment on the ground that the land is unavailable
for oil and natural gas leasing, the Secretary shall
provide a written, detailed explanation of the reasons
the land is unavailable for leasing.
(2) PREVIOUS RESOURCE MANAGEMENT DECI-
SION.—If the determination of unavailability is
based on a previous resource management decision,
the explanation shall include a careful assessment of
452
whether the reasons underlying the previous decision
are still persuasive.
(3) SEGREGATION OF AVAILABLE LAND FROM
UNAVAILABLE LAND.—The Secretary may not reject
an offer to lease Federal land for oil and natural gas
development that is available for such leasing on the
ground that the offer includes land unavailable for
leasing. The Secretary shall segregate available land
from unavailable land, on the offeror’s request fol-
lowing notice by the Secretary, before acting on the
offer to lease.
(d) DISAPPROVAL OR REQUIRED MODIFICATION OF
SURFACE USE PLANS OF OPERATIONS AND APPLICATION
FOR PERMIT TO DRILL.—The Secretary shall provide a
written, detailed explanation of the reasons for dis-
approving or requiring modifications of any surface use
plan of operations or application for permit to drill with
respect to oil or natural gas development on Federal lands.
SEC. 6224. LIMITATION ON COST RECOVERY FOR APPLICA-
TIONS.
Notwithstanding sections 304 and 504 of the Federal
Land Policy and Management Act of 1976 (43 U.S.C.
1734, 1764) and section 9701 of title 31, United States
Code, the Secretary shall not recover the Secretary’s costs
508
‘‘(ii) The project is likely to substan-
tially reduce the risk of future damage,
hardship, loss, or suffering.
‘‘(iii) The project addresses one or
more problems that have been repetitive or
that pose a significant risk to public health
and safety.
‘‘(iv) The project is not likely to cost
more than the value of the reduction in di-
rect damage and other negative impacts
that the project is designed to prevent or
mitigate. The cost benefit analysis required
by this criterion shall be computed on a
net present value basis.
‘‘(v) The project design has taken into
consideration long-term changes to the
areas and persons it is designed to protect
and has manageable future maintenance
and modification requirements.
‘‘(vi) The project plan includes an
analysis of a range of options to address
the problem it is designed to prevent or
mitigate and a justification for the selec-
tion of the project in light of that analysis.