505 
program for the Next Generation Lighting Initiative 
through competitively selected awards. The Secretary may 
give preference to participants of the Industry Alliance se-
lected pursuant to subsection (c). 
(f) INTELLECTUAL PROPERTY.—The Secretary may 
require, in accordance with the authorities provided in sec-
tion 202(a)(ii) of title 35, United States Code, section 152 
of the Atomic Energy Act of 1954 (42 U.S.C. 2182), and 
section 9 of the Federal Nonnuclear Energy Research and 
Development Act of 1974 (42 U.S.C. 5908), that— 
(1) for any new invention resulting from activi-
ties under subsection (d)— 
(A) the Industry Alliance members that 
are active participants in research, development, 
and demonstration activities related to the ad-
vanced solid-state lighting technologies that are 
the subject of this section shall be granted first 
option to negotiate with the invention owner 
nonexclusive licenses and royalties for uses of 
the invention related to solid-state lighting on 
terms that are reasonable under the cir-
cumstances; and 
(B)(i) for 1 year after a United States pat-
ent is issued for the invention, the patent hold-
er shall not negotiate any license or royalty
506 
with any entity that is not a participant in the 
Industry Alliance described in subparagraph 
(A); and 
(ii) during the year described in clause (i), 
the invention owner shall negotiate nonexclusive 
licenses and royalties in good faith with any in-
terested participant in the Industry Alliance de-
scribed in subparagraph (A); and 
(2) such other terms as the Secretary deter-
mines are required to promote accelerated commer-
cialization of inventions made under the Initiative. 
(g) NATIONAL ACADEMY REVIEW.—The Secretary 
shall enter into an arrangement with the National Acad-
emy of Sciences to conduct periodic reviews of the Next 
Generation Lighting Initiative. The Academy shall review 
the research priorities, technical milestones, and plans for 
technology transfer and progress towards achieving them. 
The Secretary shall consider the results of such reviews 
in evaluating the information obtained under subsection 
(d)(2). 
(h) DEFINITIONS.—As used in this section: 
(1) ADVANCED
SOLID-STATE
LIGHTING.—The 
term ‘‘advanced solid-state lighting’’ means a 
semiconducting device package and delivery system
507 
that produces white light using externally applied 
voltage. 
(2) RESEARCH.—The term ‘‘research’’ includes 
research on the technologies, materials, and manu-
facturing processes required for white light emitting 
diodes. 
(3) INDUSTRY ALLIANCE.—The term ‘‘Industry 
Alliance’’ means an entity selected by the Secretary 
under subsection (c). 
(4) WHITE LIGHT EMITTING DIODE.—The term 
‘‘white 
light 
emitting 
diode’’ 
means 
a 
semiconducting package, utilizing either organic or 
inorganic materials, that produces white light using 
externally applied voltage. 
SEC. 906. NATIONAL BUILDING PERFORMANCE INITIATIVE. 
(a) INTERAGENCY GROUP.—Not later than 90 days 
after the date of enactment of this Act, the Director of 
the Office of Science and Technology Policy shall establish 
an interagency group to develop, in coordination with the 
advisory committee established under subsection (e), a 
National Building Performance Initiative (in this section 
referred to as the ‘‘Initiative’’). The interagency group 
shall be co-chaired by appropriate officials of the Depart-
ment and the Department of Commerce, who shall jointly
508 
arrange for the provision of necessary administrative sup-
port to the group. 
(b) INTEGRATION
OF
EFFORTS.—The Initiative, 
working with the National Institute of Building Sciences, 
shall integrate Federal, State, and voluntary private sector 
efforts to reduce the costs of construction, operation, 
maintenance, and renovation of commercial, industrial, in-
stitutional, and residential buildings. 
(c) PLAN.—Not later than 1 year after the date of 
enactment of this Act, the interagency group shall submit 
to Congress a plan for carrying out the appropriate Fed-
eral role in the Initiative. The plan shall include— 
(1) research, development, demonstration, and 
commercial application of systems and materials for 
new construction and retrofit relating to the building 
envelope and building system components; and 
(2) the collection, analysis, and dissemination of 
research results and other pertinent information on 
enhancing building performance to industry, govern-
ment entities, and the public. 
(d) DEPARTMENT OF ENERGY ROLE.—Within the 
Federal portion of the Initiative, the Department shall be 
the lead agency for all aspects of building performance re-
lated to use and conservation of energy. 
(e) ADVISORY COMMITTEE.—
509 
(1) ESTABLISHMENT.—The Secretary, in con-
sultation with the Secretary of Commerce and the 
Director of the Office of Science and Technology 
Policy, shall establish an advisory committee to— 
(A) analyze and provide recommendations 
on potential private sector roles and participa-
tion in the Initiative; and 
(B) review and provide recommendations 
on the plan described in subsection (c). 
(2) MEMBERSHIP.—Membership of the advisory 
committee shall include representatives with a broad 
range of appropriate expertise, including expertise 
in— 
(A) building research and technology; 
(B) architecture, engineering, and building 
materials and systems; and 
(C) the residential, commercial, and indus-
trial sectors of the construction industry. 
(f) CONSTRUCTION.—Nothing in this section provides 
any Federal agency with new authority to regulate build-
ing performance. 
SEC. 907. SECONDARY ELECTRIC VEHICLE BATTERY USE 
PROGRAM. 
(a) DEFINITIONS.—For purposes of this section:
510 
(1) ASSOCIATED EQUIPMENT.—The term ‘‘asso-
ciated equipment’’ means equipment located where 
the batteries will be used that is necessary to enable 
the use of the energy stored in the batteries. 
(2) BATTERY.—The term ‘‘battery’’ means an 
energy storage device that previously has been used 
to provide motive power in a vehicle powered in 
whole or in part by electricity. 
(b) PROGRAM.—The Secretary shall establish and 
conduct a research, development, demonstration, and com-
mercial application program for the secondary use of bat-
teries if the Secretary finds that there are sufficient num-
bers of such batteries to support the program. The pro-
gram shall be— 
(1) designed to demonstrate the use of batteries 
in secondary applications, including utility and com-
mercial power storage and power quality; 
(2) structured to evaluate the performance, in-
cluding useful service life and costs, of such bat-
teries in field operations, and the necessary sup-
porting infrastructure, including reuse and disposal 
of batteries; and 
(3) coordinated with ongoing secondary battery 
use programs at the National Laboratories and in 
industry.
511 
(c) SOLICITATION.—Not later than 180 days after 
the date of enactment of this Act, if the Secretary finds 
under subsection (b) that there are sufficient numbers of 
batteries to support the program, the Secretary shall so-
licit proposals to demonstrate the secondary use of bat-
teries and associated equipment and supporting infra-
structure in geographic locations throughout the United 
States. The Secretary may make additional solicitations 
for proposals if the Secretary determines that such solici-
tations are necessary to carry out this section. 
(d) SELECTION OF PROPOSALS.— 
(1) IN
GENERAL.—The Secretary shall, not 
later than 90 days after the closing date established 
by the Secretary for receipt of proposals under sub-
section (c), select up to 5 proposals which may re-
ceive financial assistance under this section, subject 
to the availability of appropriations. 
(2) DIVERSITY; ENVIRONMENTAL EFFECT.—In 
selecting proposals, the Secretary shall consider di-
versity of battery type, geographic and climatic di-
versity, and life-cycle environmental effects of the 
approaches. 
(3) LIMITATION.—No 1 project selected under 
this section shall receive more than 25 percent of the 
funds authorized for the program under this section.
512 
(4) OPTIMIZATION OF FEDERAL RESOURCES.— 
The Secretary shall consider the extent of involve-
ment of State or local government and other persons 
in each demonstration project to optimize use of 
Federal resources. 
(5) OTHER CRITERIA.—The Secretary may con-
sider such other criteria as the Secretary considers 
appropriate. 
(e) CONDITIONS.—The Secretary shall require that— 
(1) relevant information be provided to the De-
partment, the users of the batteries, the proposers, 
and the battery manufacturers; 
(2) the proposer provide at least 50 percent of 
the costs associated with the proposal; and 
(3) the proposer provide to the Secretary such 
information regarding the disposal of the batteries 
as the Secretary may require to ensure that the pro-
poser disposes of the batteries in accordance with 
applicable law. 
SEC. 908. ENERGY EFFICIENCY SCIENCE INITIATIVE. 
(a) ESTABLISHMENT.—The Secretary shall establish 
an Energy Efficiency Science Initiative to be managed by 
the Assistant Secretary in the Department with responsi-
bility for energy conservation under section 203(a)(9) of 
the Department of Energy Organization Act (42 U.S.C.
513 
7133(a)(9)), in consultation with the Director of the Of-
fice of Science, for grants to be competitively awarded and 
subject to peer review for research relating to energy effi-
ciency. 
(b) REPORT.—The Secretary shall submit to Con-
gress, along with the President’s annual budget request 
under section 1105(a) of title 31, United States Code, a 
report on the activities of the Energy Efficiency Science 
Initiative, including a description of the process used to 
award the funds and an explanation of how the research 
relates to energy efficiency. 
SEC. 909. ELECTRIC MOTOR CONTROL TECHNOLOGY. 
The Secretary shall conduct a research, development, 
demonstration, and commercial application program on 
advanced control devices to improve the energy efficiency 
of electric motors used in heating, ventilation, air condi-
tioning, and comparable systems. 
SEC. 910. ADVANCED ENERGY TECHNOLOGY TRANSFER 
CENTERS. 
(a) GRANTS.—Not later than 18 months after the 
date of enactment of this Act, the Secretary shall make 
grants to nonprofit institutions, State and local govern-
ments, or universities (or consortia thereof), to establish 
a geographically dispersed network of Advanced Energy 
Technology Transfer Centers, to be located in areas the
514 
Secretary determines have the greatest need of the serv-
ices of such Centers. 
(b) ACTIVITIES.— 
(1) IN GENERAL.—Each Center shall operate a 
program to encourage demonstration and commer-
cial application of advanced energy methods and 
technologies through education and outreach to 
building and industrial professionals, and to other 
individuals and organizations with an interest in ef-
ficient energy use. 
(2) ADVISORY PANEL.—Each Center shall es-
tablish an advisory panel to advise the Center on 
how best to accomplish the activities under para-
graph (1). 
(c) APPLICATION.—A person seeking a grant under 
this section shall submit to the Secretary an application 
in such form and containing such information as the Sec-
retary may require. The Secretary may award a grant 
under this section to an entity already in existence if the 
entity is otherwise eligible under this section. 
(d) SELECTION
CRITERIA.—The Secretary shall 
award grants under this section on the basis of the fol-
lowing criteria, at a minimum: 
(1) The ability of the applicant to carry out the 
activities in subsection (b).
515 
(2) The extent to which the applicant will co-
ordinate the activities of the Center with other enti-
ties, such as State and local governments, utilities, 
and educational and research institutions. 
(e) MATCHING FUNDS.—The Secretary shall require 
a non-Federal matching requirement of at least 50 percent 
of the costs of establishing and operating each Center. 
(f) ADVISORY COMMITTEE.—The Secretary shall es-
tablish an advisory committee to advise the Secretary on 
the establishment of Centers under this section. The advi-
sory committee shall be composed of individuals with ex-
pertise in the area of advanced energy methods and tech-
nologies, including at least 1 representative from— 
(1) State or local energy offices; 
(2) energy professionals; 
(3) trade or professional associations; 
(4) architects, engineers, or construction profes-
sionals; 
(5) manufacturers; 
(6) the research community; and 
(7) nonprofit energy or environmental organiza-
tions. 
(g) DEFINITIONS.—For purposes of this section: 
(1) ADVANCED ENERGY METHODS AND TECH-
NOLOGIES.—The term ‘‘advanced energy methods
516 
and technologies’’ means all methods and tech-
nologies that promote energy efficiency and con-
servation, including distributed generation tech-
nologies, and life-cycle analysis of energy use. 
(2) CENTER.—The term ‘‘Center’’ means an 
Advanced Energy Technology Transfer Center estab-
lished pursuant to this section. 
(3) DISTRIBUTED
GENERATION.—The term 
‘‘distributed generation’’ means an electric power 
generation facility that is designed to serve retail 
electric consumers at or near the facility site. 
Subtitle B—Distributed Energy and 
Electric Energy Systems 
SEC. 911. DISTRIBUTED ENERGY AND ELECTRIC ENERGY 
SYSTEMS. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for distributed 
energy and electric energy systems activities, including ac-
tivities authorized under this subtitle: 
(1) For fiscal year 2004, $190,000,000. 
(2) For fiscal year 2005, $200,000,000. 
(3) For fiscal year 2006, $220,000,000. 
(4) For fiscal year 2007, $240,000,000. 
(5) For fiscal year 2008, $260,000,000.
517 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—From amounts authorized under subsection 
(a), $20,000,000 for each of fiscal years 2004 and 2005 
is authorized for activities under section 914. 
SEC. 912. HYBRID DISTRIBUTED POWER SYSTEMS. 
(a) REQUIREMENT.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall develop 
and transmit to Congress a strategy for a comprehensive 
research, development, demonstration, and commercial ap-
plication program to develop hybrid distributed power sys-
tems that combine— 
(1) 1 or more renewable electric power genera-
tion technologies of 10 megawatts or less located 
near the site of electric energy use; and 
(2) nonintermittent electric power generation 
technologies suitable for use in a distributed power 
system. 
(b) CONTENTS.—The strategy shall— 
(1) identify the needs best met with such hybrid 
distributed power systems and the technological bar-
riers to the use of such systems; 
(2) provide for the development of methods to 
design, test, integrate into systems, and operate 
such hybrid distributed power systems;
518 
(3) include, as appropriate, research, develop-
ment, demonstration, and commercial application on 
related technologies needed for the adoption of such 
hybrid distributed power systems, including energy 
storage devices and environmental control tech-
nologies; 
(4) include research, development, demonstra-
tion, and commercial application of interconnection 
technologies for communications and controls of dis-
tributed generation architectures, particularly tech-
nologies promoting real-time response to power mar-
ket information and physical conditions on the elec-
trical grid; and 
(5) describe how activities under the strategy 
will be integrated with other research, development, 
demonstration, and commercial application activities 
supported by the Department related to electric 
power technologies. 
SEC. 913. HIGH POWER DENSITY INDUSTRY PROGRAM. 
The Secretary shall establish a comprehensive re-
search, development, demonstration, and commercial ap-
plication program to improve energy efficiency of high 
power density facilities, including data centers, server 
farms, and telecommunications facilities. Such program 
shall consider technologies that provide significant im-
519 
provement in thermal controls, metering, load manage-
ment, peak load reduction, or the efficient cooling of elec-
tronics. 
SEC. 914. MICRO-COGENERATION ENERGY TECHNOLOGY. 
The Secretary shall make competitive, merit-based 
grants to consortia for the development of micro-cogenera-
tion energy technology. The consortia shall explore— 
(1) the use of small-scale combined heat and 
power in residential heating appliances; and 
(2) the use of excess power to operate other ap-
pliances within the residence and supply excess gen-
erated power to the power grid. 
SEC. 
915. 
DISTRIBUTED 
ENERGY 
TECHNOLOGY 
DEM-
ONSTRATION PROGRAM. 
The Secretary, within the sums authorized under sec-
tion 911(a), may provide financial assistance to coordi-
nating consortia of interdisciplinary participants for dem-
onstrations designed to accelerate the utilization of dis-
tributed energy technologies, such as fuel cells, microtur-
bines, reciprocating engines, thermally activated tech-
nologies, and combined heat and power systems, in highly 
energy intensive commercial applications. 
SEC. 916. RECIPROCATING POWER. 
The Secretary shall conduct a research, development, 
and demonstration program regarding fuel system optimi-
520 
zation and emissions reduction after-treatment tech-
nologies for industrial reciprocating engines. Such after- 
treatment technologies shall use processes that reduce 
emissions by recirculating exhaust gases and shall be de-
signed to be retrofitted to any new or existing diesel or 
natural gas engine used for power generation, peaking 
power generation, combined heat and power, or compres-
sion. 
Subtitle C—Renewable Energy 
SEC. 918. RENEWABLE ENERGY. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for renewable en-
ergy research, development, demonstration, and commer-
cial application activities, including activities authorized 
under this subtitle: 
(1) For fiscal year 2004, $480,000,000. 
(2) For fiscal year 2005, $550,000,000. 
(3) For fiscal year 2006, $610,000,000. 
(4) For fiscal year 2007, $659,000,000. 
(5) For fiscal year 2008, $710,000,000. 
(b) BIOENERGY.—From the amounts authorized 
under subsection (a), the following sums are authorized 
to be appropriated to carry out section 919: 
(1) For fiscal year 2004, $135,425,000. 
(2) For fiscal year 2005, $155,600,000.
521 
(3) For fiscal year 2006, $167,650,000. 
(4) For fiscal year 2007, $180,000,000. 
(5) For fiscal year 2008, $192,000,000. 
(c) 
CONCENTRATING
SOLAR
POWER.—From 
amounts authorized under subsection (a), the following 
sums are authorized to be appropriated to carry out sec-
tion 920: 
(1) For fiscal year 2004, $20,000,000. 
(2) For fiscal year 2005, $40,000,000. 
(3) For each of fiscal years 2006, 2007 and 
2008, $50,000,000. 
(d) PUBLIC BUILDINGS.—From the amounts author-
ized under subsection (a), $30,000,000 for each of the fis-
cal years 2004 through 2008 are authorized to be appro-
priated to carry out section 922. 
(e) LIMITS ON USE OF FUNDS.— 
(1) NO FUNDS FOR RENEWABLE SUPPORT AND 
IMPLEMENTATION.—None of the funds authorized to 
be appropriated under this section may be used for 
Renewable Support and Implementation. 
(2) GRANTS.—Of the funds authorized under 
subsection (b), not less than $5,000,000 for each fis-
cal year shall be made available for grants to His-
torically Black Colleges and Universities, Tribal Col-
leges, and Hispanic-Serving Institutions.
522 
(3) REGIONAL
FIELD
VERIFICATION
PRO-
GRAM.—Of the funds authorized under subsection 
(a), not less than $4,000,000 for each fiscal year 
shall be made available for the Regional Field 
Verification Program of the Department. 
(4) OFF-STREAM
PUMPED
STORAGE
HYDRO-
POWER.—Of the funds authorized under subsection 
(a), such sums as may be necessary shall be made 
available for demonstration projects of off-stream 
pumped storage hydropower. 
(f) CONSULTATION.—In carrying out this subtitle, 
the Secretary, in consultation with the Secretary of Agri-
culture, shall demonstrate the use of advanced wind power 
technology, including combined use with coal gasification; 
biomass; geothermal energy systems; and other renewable 
energy technologies to assist in delivering electricity to 
rural and remote locations. 
SEC. 919. BIOENERGY PROGRAMS. 
(a) DEFINITIONS.—For the purposes of this section: 
(1) The term ‘‘agricultural byproducts’’ in-
cludes waste products, including poultry fat and 
poultry waste. 
(2) The term ‘‘cellulosic biomass’’ means any 
portion of a crop containing lignocellulose or hemi-
cellulose, including barley grain, grapeseed, forest
523 
thinnings, rice bran, rice hulls, rice straw, soybean 
matter, and sugarcane bagasse, or any crop grown 
specifically for the purpose of producing cellulosic 
feedstocks. 
(b) PROGRAM.—The Secretary shall conduct a pro-
gram of research, development, demonstration, and com-
mercial application for bioenergy, including— 
(1) biopower energy systems; 
(2) biofuels; 
(3) bio-based products; 
(4) integrated biorefineries that may produce 
biopower, biofuels, and bio-based products; 
(5) cross-cutting research and development in 
feedstocks and enzymes; and 
(6) economic analysis. 
(c) BIOFUELS
AND BIO-BASED PRODUCTS.—The 
goals of the biofuels and bio-based products programs 
shall be to develop, in partnership with industry— 
(1) advanced biochemical and thermochemical 
conversion technologies capable of making biofuels 
that are price-competitive with gasoline or diesel in 
either internal combustion engines or fuel cell-pow-
ered vehicles, and bio-based products from a variety 
of feedstocks, including grains, cellulosic biomass, 
and other agricultural byproducts; and
524 
(2) advanced biotechnology processes capable of 
making biofuels and bio-based products with empha-
sis on development of biorefinery technologies using 
enzyme-based processing systems. 
SEC. 920. CONCENTRATING SOLAR POWER RESEARCH AND 
DEVELOPMENT PROGRAM. 
(a) IN GENERAL.—The Secretary shall conduct a 
program of research and development to evaluate the po-
tential of concentrating solar power for hydrogen produc-
tion, including cogeneration approaches for both hydrogen 
and electricity. Such program shall take advantage of ex-
isting facilities to the extent possible and shall include— 
(1) development of optimized technologies that 
are common to both electricity and hydrogen produc-
tion; 
(2) evaluation of thermochemical cycles for hy-
drogen production at the temperatures attainable 
with concentrating solar power; 
(3) evaluation of materials issues for the 
thermochemical cycles described in paragraph (2); 
(4) system architectures and economics studies; 
and 
(5) coordination with activities in the Advanced 
Reactor Hydrogen Cogeneration Project on high
525 
temperature materials, thermochemical cycles, and 
economic issues. 
(b) ASSESSMENT.—In carrying out the program 
under this section, the Secretary shall— 
(1) assess conflicting guidance on the economic 
potential of concentrating solar power for electricity 
production received from the National Research 
Council report entitled ‘‘Renewable Power Pathways: 
A Review of the U.S. Department of Energy’s Re-
newable Energy Programs’’ in 2000 and subsequent 
Department-funded reviews of that report; and 
(2) provide an assessment of the potential im-
pact of the technology before, or concurrent with, 
submission of the fiscal year 2006 budget. 
(c) REPORT.—Not later than 5 years after the date 
of enactment of this Act, the Secretary shall provide a re-
port to Congress on the economic and technical potential 
for electricity or hydrogen production, with or without co-
generation, with concentrating solar power, including the 
economic and technical feasibility of potential construction 
of a pilot demonstration facility suitable for commercial 
production of electricity or hydrogen from concentrating 
solar power.
526 
SEC. 921. MISCELLANEOUS PROJECTS. 
The Secretary may conduct research, development, 
demonstration, and commercial application programs 
for— 
(1) ocean energy, including wave energy; and 
(2) the combined use of renewable energy tech-
nologies with one another and with other energy 
technologies, including the combined use of wind 
power and coal gasification technologies. 
SEC. 922. RENEWABLE ENERGY IN PUBLIC BUILDINGS. 
(a) DEMONSTRATION AND TECHNOLOGY TRANSFER 
PROGRAM.—The Secretary shall establish a program for 
the demonstration of innovative technologies for solar and 
other renewable energy sources in buildings owned or op-
erated by a State or local government, and for the dissemi-
nation of information resulting from such demonstration 
to interested parties. 
(b) LIMIT ON FEDERAL FUNDING.—The Secretary 
shall provide under this section no more than 40 percent 
of the incremental costs of the solar or other renewable 
energy source project funded. 
(c) REQUIREMENT.—As part of the application for 
awards under this section, the Secretary shall require all 
applicants—
527 
(1) to demonstrate a continuing commitment to 
the use of solar and other renewable energy sources 
in buildings they own or operate; and 
(2) to state how they expect any award to fur-
ther their transition to the significant use of renew-
able energy. 
SEC. 923. STUDY OF MARINE RENEWABLE ENERGY OP-
TIONS. 
(a) IN GENERAL.—The Secretary shall enter into an 
arrangement with the National Academy of Sciences to 
conduct a study on— 
(1) the feasibility of various methods of renew-
able generation of energy from the ocean, including 
energy from waves, tides, currents, and thermal gra-
dients; and 
(2) the research, development, demonstration, 
and commercial application activities required to 
make marine renewable energy generation competi-
tive with other forms of electricity generation. 
(b) TRANSMITTAL.—Not later than 1 year after the 
date of enactment of this Act, the Secretary shall transmit 
the study to Congress along with the Secretary’s rec-
ommendations for implementing the results of the study.
528 
Subtitle D—Nuclear Energy 
SEC. 924. NUCLEAR ENERGY. 
(a) CORE PROGRAMS.—The following sums are au-
thorized to be appropriated to the Secretary for nuclear 
energy research, development, demonstration, and com-
mercial application activities, including activities author-
ized under this subtitle, other than those described in sub-
section (b): 
(1) For fiscal year 2004, $273,000,000. 
(2) For fiscal year 2005, $355,000,000. 
(3) For fiscal year 2006, $430,000,000. 
(4) For fiscal year 2007, $455,000,000. 
(5) For fiscal year 2008, $545,000,000. 
(b) NUCLEAR INFRASTRUCTURE SUPPORT.—The fol-
lowing sums are authorized to be appropriated to the Sec-
retary for activities under section 925(e): 
(1) For fiscal year 2004, $125,000,000. 
(2) For fiscal year 2005, $130,000,000. 
(3) For fiscal year 2006, $135,000,000. 
(4) For fiscal year 2007, $140,000,000. 
(5) For fiscal year 2008, $145,000,000. 
(c) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized: 
(1) For activities under section 926— 
(A) for fiscal year 2004, $140,000,000;
529 
(B) for fiscal year 2005, $145,000,000; 
(C) for fiscal year 2006, $150,000,000; 
(D) for fiscal year 2007, $155,000,000; 
and 
(E) for fiscal year 2008, $275,000,000. 
(2) For activities under section 927— 
(A) for fiscal year 2004, $35,200,000; 
(B) for fiscal year 2005, $44,350,000; 
(C) for fiscal year 2006, $49,200,000; 
(D) for fiscal year 2007, $54,950,000; and 
(E) for fiscal year 2008, $60,000,000. 
(3) For activities under section 929, for each of 
fiscal years 2004 through 2008, $6,000,000. 
(d) LIMITATION ON USE OF FUNDS.—None of the 
funds authorized under this section may be used for de-
commissioning the Fast Flux Test Facility. 
SEC. 925. NUCLEAR ENERGY RESEARCH AND DEVELOP-
MENT PROGRAMS. 
(a) NUCLEAR ENERGY RESEARCH INITIATIVE.—The 
Secretary shall carry out a Nuclear Energy Research Ini-
tiative for research and development related to nuclear en-
ergy. 
(b) NUCLEAR ENERGY PLANT OPTIMIZATION PRO-
GRAM.—The Secretary shall carry out a Nuclear Energy 
Plant Optimization Program to support research and de-
530 
velopment activities addressing reliability, availability, pro-
ductivity, component aging, safety, and security of existing 
nuclear power plants. 
(c) NUCLEAR POWER 2010 PROGRAM.—The Sec-
retary shall carry out a Nuclear Power 2010 Program, 
consistent with recommendations in the October 2001 re-
port entitled ‘‘A Roadmap to Deploy New Nuclear Power 
Plants in the United States by 2010’’ issued by the Nu-
clear Energy Research Advisory Committee of the Depart-
ment. Whatever type of reactor is chosen for the hydrogen 
cogeneration project under subtitle C of title VI, that type 
shall not be addressed in the Program under this section. 
The Program shall include— 
(1) support for first-of-a-kind engineering de-
sign and certification expenses of advanced nuclear 
power plant designs, which offer improved safety 
and economics over current conventional plants and 
the promise of near-term to medium-term commer-
cial deployment; 
(2) action by the Secretary to encourage domes-
tic power companies to install new nuclear plant ca-
pacity as soon as possible; 
(3) utilization of the expertise and capabilities 
of industry, universities, and National Laboratories
531 
in evaluation of advanced nuclear fuel cycles and 
fuels testing; 
(4) consideration of proliferation-resistant pas-
sively-safe, small reactors suitable for long-term elec-
tricity production without refueling and suitable for 
use in remote installations; 
(5) participation of international collaborators 
in research, development, design, and deployment ef-
forts as appropriate and consistent with United 
States interests in nonproliferation of nuclear weap-
ons; 
(6) encouragement for university and industry 
participation; and 
(7) selection of projects such as to strengthen 
the competitive position of the domestic nuclear 
power industrial infrastructure. 
(d) GENERATION IV NUCLEAR ENERGY SYSTEMS 
INITIATIVE.—The Secretary shall carry out a Generation 
IV Nuclear Energy Systems Initiative to develop an over-
all technology plan and to support research and develop-
ment necessary to make an informed technical decision 
about the most promising candidates for eventual commer-
cial application. The Initiative shall examine advanced 
proliferation-resistant and passively safe reactor designs, 
including designs that—
532 
(1) are economically competitive with other elec-
tric power generation plants; 
(2) have higher efficiency, lower cost, and im-
proved safety compared to reactors in operation on 
the date of enactment of this Act; 
(3) use fuels that are proliferation-resistant and 
have substantially reduced production of high-level 
waste per unit of output; and 
(4) use improved instrumentation. 
(e) NUCLEAR
INFRASTRUCTURE
SUPPORT.—The 
Secretary shall develop and implement a strategy for the 
facilities of the Office of Nuclear Energy, Science, and 
Technology and shall transmit a report containing the 
strategy along with the President’s budget request to Con-
gress for fiscal year 2006. 
SEC. 926. ADVANCED FUEL CYCLE INITIATIVE. 
(a) IN GENERAL.—The Secretary, through the Direc-
tor of the Office of Nuclear Energy, Science, and Tech-
nology, shall conduct an advanced fuel recycling tech-
nology research and development program to evaluate pro-
liferation-resistant fuel recycling and transmutation tech-
nologies that minimize environmental or public health and 
safety impacts as an alternative to aqueous reprocessing 
technologies deployed as of the date of enactment of this 
Act in support of evaluation of alternative national strate-
533 
gies for spent nuclear fuel and the Generation IV ad-
vanced reactor concepts, subject to annual review by the 
Secretary’s Nuclear Energy Research Advisory Committee 
or other independent entity, as appropriate. Opportunities 
to enhance progress of the program through international 
cooperation should be sought. 
(b) REPORTS.—The Secretary shall report on the ac-
tivities of the advanced fuel recycling technology research 
and development program as part of the Department’s an-
nual budget submission. 
SEC. 927. UNIVERSITY NUCLEAR SCIENCE AND ENGINEER-
ING SUPPORT. 
(a) ESTABLISHMENT.—The Secretary shall support 
a program to invest in human resources and infrastructure 
in the nuclear sciences and engineering and related fields 
(including health physics and nuclear and radiochemistry), 
consistent with departmental missions related to civilian 
nuclear research and development. 
(b) DUTIES.—In carrying out the program under this 
section, the Secretary shall establish fellowship and faculty 
assistance programs, as well as provide support for funda-
mental research and encourage collaborative research 
among industry, National Laboratories, and universities 
through the Nuclear Energy Research Initiative. The Sec-
retary is encouraged to support activities addressing the
534 
entire fuel cycle through involvement of both the Office 
of Nuclear Energy, Science, and Technology and the Of-
fice of Civilian Radioactive Waste Management. The Sec-
retary shall support communication and outreach related 
to nuclear science, engineering, and nuclear waste man-
agement, consistent with interests of the United States in 
nonproliferation of nuclear weapons capabilities. 
(c) STRENGTHENING UNIVERSITY RESEARCH AND 
TRAINING REACTORS
AND ASSOCIATED INFRASTRUC-
TURE.—Activities under this section may include— 
(1) converting research and training reactors 
currently using high-enrichment fuels to low-enrich-
ment fuels, upgrading operational instrumentation, 
and sharing of reactors among institutions of higher 
education; 
(2) providing technical assistance, in collabora-
tion with the United States nuclear industry, in reli-
censing and upgrading research and training reac-
tors as part of a student training program; and 
(3) providing funding, through the Innovations 
in Nuclear Infrastructure and Education Program, 
for reactor improvements as part of a focused effort 
that emphasizes research, training, and education. 
(d) UNIVERSITY NATIONAL LABORATORY INTER-
ACTIONS.—The Secretary shall develop sabbatical fellow-
535 
ship and visiting scientist programs to encourage sharing 
of personnel between National Laboratories and univer-
sities. 
(e) OPERATING AND MAINTENANCE COSTS.—Fund-
ing for a research project provided under this section may 
be used to offset a portion of the operating and mainte-
nance costs of a research and training reactor at an insti-
tution of higher education used in the research project. 
SEC. 928. SECURITY OF REACTOR DESIGNS. 
The Secretary, through the Director of the Office of 
Nuclear Energy, Science, and Technology, shall conduct 
a research and development program on cost-effective 
technologies for increasing the safety of reactor designs 
from natural phenomena and the security of reactor de-
signs from deliberate attacks. 
SEC. 929. ALTERNATIVES TO INDUSTRIAL RADIOACTIVE 
SOURCES. 
(a) STUDY.—The Secretary shall conduct a study and 
provide a report to Congress not later than August 1, 
2004. The study shall— 
(1) survey industrial applications of large radio-
active sources, including well-logging sources; 
(2) review current domestic and international 
Department, Department of Defense, Department of
536 
State, and commercial programs to manage and dis-
pose of radioactive sources; 
(3) discuss disposal options and practices for 
currently deployed or future sources and, if defi-
ciencies are noted in existing disposal options or 
practices for either deployed or future sources, rec-
ommend options to remedy deficiencies; and 
(4) develop a program plan for research and de-
velopment to develop alternatives to large industrial 
sources that reduce safety, environmental, or pro-
liferation risks to either workers using the sources or 
the public. 
(b) PROGRAM.—The Secretary shall establish a re-
search and development program to implement the pro-
gram plan developed under subsection (a)(4). The pro-
gram shall include miniaturized particle accelerators for 
well-logging or other industrial applications and portable 
accelerators for production of short-lived radioactive mate-
rials at an industrial site. 
SEC. 930. GEOLOGICAL ISOLATION OF SPENT FUEL. 
The Secretary shall conduct a study to determine the 
feasibility of deep borehole disposal of spent nuclear fuel 
and high-level radioactive waste. The study shall empha-
size geological, chemical, and hydrological characterization 
of, and design of engineered structures for, deep borehole
537 
environments. Not later than 1 year after the date of en-
actment of this Act, the Secretary shall transmit the study 
to Congress. 
Subtitle E—Fossil Energy 
PART I—RESEARCH PROGRAMS 
SEC. 931. FOSSIL ENERGY. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for fossil energy 
research, development, demonstration, and commercial ap-
plication activities, including activities authorized under 
this part: 
(1) For fiscal year 2004, $530,000,000. 
(2) For fiscal year 2005, $556,000,000. 
(3) For fiscal year 2006, $583,000,000. 
(4) For fiscal year 2007, $611,000,000. 
(5) For fiscal year 2008, $626,000,000. 
(b) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized: 
(1) For activities under section 932(b)(2), 
$28,000,000 for each of the fiscal years 2004 
through 2008. 
(2) For activities under section 934— 
(A) for fiscal year 2004, $12,000,000; 
(B) for fiscal year 2005, $15,000,000; and
538 
(C) for each of fiscal years 2006 through 
2008, $20,000,000. 
(3) For activities under section 935— 
(A) for fiscal year 2004, $259,000,000; 
(B) for fiscal year 2005, $272,000,000; 
(C) for fiscal year 2006, $285,000,000; 
(D) for fiscal year 2007, $298,000,000; 
and 
(E) for fiscal year 2008, $308,000,000. 
(4) For the Office of Arctic Energy under sec-
tion 3197 of the Floyd D. Spence National Defense 
Authorization Act for Fiscal Year 2001 (42 U.S.C. 
7144d), $25,000,000 for each of fiscal years 2004 
through 2008. 
(5) 
For 
activities 
under 
section 
933, 
$4,000,000 for fiscal year 2004 and $2,000,000 for 
each of fiscal years 2005 through 2008. 
(c) EXTENDED AUTHORIZATION.—There are author-
ized to be appropriated to the Secretary for the Office of 
Arctic Energy under section 3197 of the Floyd D. Spence 
National Defense Authorization Act for Fiscal Year 2001 
(42 U.S.C. 7144d), $25,000,000 for each of fiscal years 
2009 through 2012. 
(d) LIMITS ON USE OF FUNDS.—
539 
(1) NO FUNDS FOR CERTAIN PROGRAMS.—None 
of the funds authorized under this section may be 
used for Fossil Energy Environmental Restoration 
or Import/Export Authorization. 
(2) INSTITUTIONS OF HIGHER EDUCATION.—Of 
the funds authorized under subsection (b)(2), not 
less than 20 percent of the funds appropriated for 
each fiscal year shall be dedicated to research and 
development carried out at institutions of higher 
education. 
SEC. 932. OIL AND GAS RESEARCH PROGRAMS. 
(a) OIL AND GAS RESEARCH.—The Secretary shall 
conduct a program of research, development, demonstra-
tion, and commercial application on oil and gas, includ-
ing— 
(1) exploration and production; 
(2) gas hydrates; 
(3) reservoir life and extension; 
(4) transportation and distribution infrastruc-
ture; 
(5) ultraclean fuels; 
(6) heavy oil and oil shale; 
(7) related environmental research; and 
(8) compressed natural gas marine transport. 
(b) FUEL CELLS.—
540 
(1) IN GENERAL.—The Secretary shall conduct 
a program of research, development, demonstration, 
and commercial application on fuel cells for low-cost, 
high-efficiency, fuel-flexible, modular power systems. 
(2) IMPROVED
MANUFACTURING
PRODUCTION 
AND PROCESSES.—The demonstrations under para-
graph (1) shall include fuel cell technology for com-
mercial, residential, and transportation applications, 
and distributed generation systems, utilizing im-
proved manufacturing production and processes. 
(c) NATURAL GAS AND OIL DEPOSITS REPORT.— 
Not later than 2 years after the date of enactment of this 
Act, and every 2 years thereafter, the Secretary of the In-
terior, in consultation with other appropriate Federal 
agencies, shall transmit a report to Congress of the latest 
estimates of natural gas and oil reserves, reserves growth, 
and undiscovered resources in Federal and State waters 
off the coast of Louisiana and Texas. 
(d) INTEGRATED CLEAN POWER AND ENERGY RE-
SEARCH.— 
(1) NATIONAL CENTER OR CONSORTIUM OF EX-
CELLENCE.—The Secretary shall establish a na-
tional center or consortium of excellence in clean en-
ergy and power generation, utilizing the resources of 
the existing Clean Power and Energy Research Con-
541 
sortium, to address the Nation’s critical dependence 
on energy and the need to reduce emissions. 
(2) PROGRAM.—The center or consortium shall 
conduct a program of research, development, dem-
onstration, and commercial application on inte-
grating the following focus areas: 
(A) Efficiency and reliability of gas tur-
bines for power generation. 
(B) Reduction in emissions from power 
generation. 
(C) Promotion of energy conservation 
issues. 
(D) Effectively utilizing alternative fuels 
and renewable energy. 
(E) Development of advanced materials 
technology for oil and gas exploration and utili-
zation in harsh environments. 
(F) Education on energy and power gen-
eration issues. 
SEC. 933. TECHNOLOGY TRANSFER. 
The Secretary shall establish a competitive program 
to award a contract to a nonprofit entity for the purpose 
of transferring technologies developed with public funds. 
The entity selected under this section shall have experi-
ence in offshore oil and gas technology research manage-
542 
ment, in the transfer of technologies developed with public 
funds to the offshore and maritime industry, and in man-
agement of an offshore and maritime industry consortium. 
The program consortium selected under section 942 shall 
not be eligible for selection under this section. When ap-
propriate, the Secretary shall consider utilizing the entity 
selected under this section when implementing the activi-
ties authorized by section 975. 
SEC. 934. RESEARCH AND DEVELOPMENT FOR COAL MIN-
ING TECHNOLOGIES. 
(a) ESTABLISHMENT.—The Secretary shall carry out 
a program of research and development on coal mining 
technologies. The Secretary shall cooperate with appro-
priate Federal agencies, coal producers, trade associations, 
equipment manufacturers, institutions of higher education 
with mining engineering departments, and other relevant 
entities. 
(b) PROGRAM.—The research and development activi-
ties carried out under this section shall— 
(1) be guided by the mining research and devel-
opment priorities identified by the Mining Industry 
of the Future Program and in the recommendations 
from relevant reports of the National Academy of 
Sciences on mining technologies;
543 
(2) include activities exploring minimization of 
contaminants in mined coal that contribute to envi-
ronmental concerns including development and dem-
onstration of electromagnetic wave imaging ahead of 
mining operations; 
(3) develop and demonstrate electromagnetic 
wave imaging and radar techniques for horizontal 
drilling in coal beds in order to increase methane re-
covery efficiency, prevent spoilage of domestic coal 
reserves, and minimize water disposal associated 
with methane extraction; and 
(4) expand mining research capabilities at insti-
tutions of higher education. 
SEC. 935. COAL AND RELATED TECHNOLOGIES PROGRAM. 
(a) IN GENERAL.—In addition to the programs au-
thorized under title IV, the Secretary shall conduct a pro-
gram of technology research, development, demonstration, 
and commercial application for coal and power systems, 
including programs to facilitate production and generation 
of coal-based power through— 
(1) innovations for existing plants; 
(2) integrated gasification combined cycle; 
(3) advanced combustion systems; 
(4) turbines for synthesis gas derived from coal;
544 
(5) carbon capture and sequestration research 
and development; 
(6) coal-derived transportation fuels and chemi-
cals; 
(7) solid fuels and feedstocks; 
(8) advanced coal-related research; 
(9) advanced separation technologies; and 
(10) a joint project for permeability enhance-
ment in coals for natural gas production and carbon 
dioxide sequestration. 
(b) COST AND PERFORMANCE GOALS.—In carrying 
out programs authorized by this section, the Secretary 
shall identify cost and performance goals for coal-based 
technologies that would permit the continued cost-com-
petitive use of coal for electricity generation, as chemical 
feedstocks, and as transportation fuel in 2007, 2015, and 
the years after 2020. In establishing such cost and per-
formance goals, the Secretary shall— 
(1) consider activities and studies undertaken 
to date by industry in cooperation with the Depart-
ment in support of such assessment; 
(2) consult with interested entities, including 
coal producers, industries using coal, organizations 
to promote coal and advanced coal technologies, en-
545 
vironmental organizations, and organizations rep-
resenting workers; 
(3) not later than 120 days after the date of 
enactment of this Act, publish in the Federal Reg-
ister proposed draft cost and performance goals for 
public comments; and 
(4) not later than 180 days after the date of 
enactment of this Act and every 4 years thereafter, 
submit to Congress a report describing final cost 
and performance goals for such technologies that in-
cludes a list of technical milestones as well as an ex-
planation of how programs authorized in this section 
will not duplicate the activities authorized under the 
Clean Coal Power Initiative authorized under sub-
title A of title IV. 
SEC. 936. COMPLEX WELL TECHNOLOGY TESTING FACIL-
ITY. 
The Secretary, in coordination with industry leaders 
in extended research drilling technology, shall establish a 
Complex Well Technology Testing Facility at the Rocky 
Mountain Oilfield Testing Center to increase the range of 
extended drilling technologies.
546 
SEC. 937. FISCHER-TROPSCH DIESEL FUEL LOAN GUAR-
ANTEE PROGRAM. 
(a) DEFINITION
OF
FISCHER-TROPSCH
DIESEL 
FUEL.—In this section, the term ‘‘Fischer-Tropsch diesel 
fuel’’ means diesel fuel that— 
(1) contains less than 10 parts per million sul-
fur; and 
(2) is produced through the Fischer-Tropsch 
liquification process from coal or waste from coal 
that was mined in the United States. 
(b) LOAN GUARANTEES.— 
(1) ESTABLISHMENT OF PROGRAM.—The Sec-
retary of Energy shall establish a program to pro-
vide guarantees of loans by private lending institu-
tions for the construction of facilities for the produc-
tion of Fischer-Tropsch diesel fuel and commercial 
byproducts of that production. 
(2) REQUIREMENTS.—The Secretary may pro-
vide a loan guarantee under paragraph (1) if— 
(A) without a loan guarantee, credit is not 
available to the applicant under reasonable 
terms or conditions sufficient to finance the 
construction of a facility described in paragraph 
(1); 
(B) the prospective earning power of the 
applicant and the character and value of the se-
547 
curity pledged provide a reasonable assurance 
of repayment of the loan to be guaranteed in 
accordance with the terms of the loan; and 
(C) the loan bears interest at a rate deter-
mined by the Secretary to be reasonable, taking 
into account the current average yield on out-
standing obligations of the United States with 
remaining periods of maturity comparable to 
the maturity of the loan. 
(3) CRITERIA.—In selecting recipients of loan 
guarantees from among applicants, the Secretary 
shall give preference to proposals that— 
(A) meet all Federal and State permitting 
requirements; 
(B) are most likely to be successful; and 
(C) are located in local markets that have 
the greatest need for the facility because of— 
(i) the availability of domestic coal or 
coal waste for conversion; or 
(ii) a projected high level of demand 
for Fischer-Tropsch diesel fuel or other 
commercial byproducts of the facility. 
(4) MATURITY.—A loan guaranteed under 
paragraph (1) shall have a maturity of not more 
than 25 years.
548 
(5) TERMS AND CONDITIONS.—The loan agree-
ment for a loan guaranteed under paragraph (1) 
shall provide that no provision of the loan may be 
amended or waived without the consent of the Sec-
retary. 
(6) GUARANTEE FEE.—A recipient of a loan 
guarantee under paragraph (1) shall pay the Sec-
retary an amount to be determined by the Secretary 
to be sufficient to cover the administrative costs of 
the Secretary relating to the loan guarantee. 
(7) FULL FAITH AND CREDIT.— 
(A) IN GENERAL.—The full faith and cred-
it of the United States is pledged to payment 
of loan guarantees made under this section. 
(B) CONCLUSIVE
EVIDENCE.—Any loan 
guarantee made by the Secretary under this 
section shall be conclusive evidence of the eligi-
bility of the loan for the guarantee with respect 
to principal and interest. 
(C) VALIDITY.—The validity of a loan 
guarantee shall be incontestable in the hands of 
a holder of the guaranteed loan. 
(8) REPORTS.—Until each guaranteed loan 
under this section is repaid in full, the Secretary
549 
shall annually submit to Congress a report on the 
activities of the Secretary under this section. 
(9) AUTHORIZATION
OF
APPROPRIATIONS.— 
There are authorized to be appropriated such sums 
as are necessary to carry out this section. 
(10) TERMINATION OF AUTHORITY.—The au-
thority of the Secretary to issue a new loan guar-
antee under paragraph (1) terminates on the date 
that is 5 years after the date of enactment of this 
Act. 
PART II—ULTRA-DEEPWATER AND UNCONVEN-
TIONAL NATURAL GAS AND OTHER PETRO-
LEUM RESOURCES 
SEC. 941. PROGRAM AUTHORITY. 
(a) IN GENERAL.—The Secretary shall carry out a 
program under this part of research, development, dem-
onstration, and commercial application of technologies for 
ultra-deepwater and unconventional natural gas and other 
petroleum resource exploration and production, including 
addressing the technology challenges for small producers, 
safe operations, and environmental mitigation (including 
reduction of greenhouse gas emissions and sequestration 
of carbon). 
(b) PROGRAM ELEMENTS.—The program under this 
part shall address the following areas, including improving
550 
safety and minimizing environmental impacts of activities 
within each area: 
(1) Ultra-deepwater technology, including drill-
ing to formations in the Outer Continental Shelf to 
depths greater than 15,000 feet. 
(2) Ultra-deepwater architecture. 
(3) Unconventional natural gas and other petro-
leum resource exploration and production tech-
nology, including the technology challenges of small 
producers. 
(c) LIMITATION ON LOCATION OF FIELD ACTIVI-
TIES.—Field activities under the program under this part 
shall be carried out only— 
(1) in— 
(A) areas in the territorial waters of the 
United States not under any Outer Continental 
Shelf moratorium as of September 30, 2002; 
(B) areas onshore in the United States on 
public land administered by the Secretary of the 
Interior available for oil and gas leasing, where 
consistent with applicable law and land use 
plans; and 
(C) areas onshore in the United States on 
State or private land, subject to applicable law; 
and
551 
(2) with the approval of the appropriate Fed-
eral or State land management agency or private 
land owner. 
(d) RESEARCH AT NATIONAL ENERGY TECHNOLOGY 
LABORATORY.—The Secretary, through the National En-
ergy Technology Laboratory, shall carry out research com-
plementary to research under subsection (b). 
(e) CONSULTATION WITH SECRETARY OF THE INTE-
RIOR.—In carrying out this part, the Secretary shall con-
sult regularly with the Secretary of the Interior. 
SEC. 942. ULTRA-DEEPWATER PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out the 
activities under section 941(a), to maximize the use of the 
ultra-deepwater natural gas and other petroleum resources 
of the United States by increasing the supply of such re-
sources, through reducing the cost and increasing the effi-
ciency of exploration for and production of such resources, 
while improving safety and minimizing environmental im-
pacts. 
(b) ROLE OF THE SECRETARY.—The Secretary shall 
have ultimate responsibility for, and oversight of, all as-
pects of the program under this section. 
(c) ROLE OF THE PROGRAM CONSORTIUM.— 
(1) IN GENERAL.—The Secretary may contract 
with a consortium to—
552 
(A) manage awards pursuant to subsection 
(f)(4); 
(B) make recommendations to the Sec-
retary for project solicitations; 
(C) disburse funds awarded under sub-
section (f) as directed by the Secretary in ac-
cordance with the annual plan under subsection 
(e); and 
(D) carry out other activities assigned to 
the program consortium by this section. 
(2) LIMITATION.—The Secretary may not as-
sign any activities to the program consortium except 
as specifically authorized under this section. 
(3) CONFLICT OF INTEREST.— 
(A) PROCEDURES.—The Secretary shall 
establish procedures— 
(i) to ensure that each board member, 
officer, or employee of the program consor-
tium who is in a decision-making capacity 
under subsection (f)(3) or (4) shall disclose 
to the Secretary any financial interests in, 
or financial relationships with, applicants 
for or recipients of awards under this sec-
tion, including those of his or her spouse 
or minor child, unless such relationships or
553 
interests would be considered to be remote 
or inconsequential; and 
(ii) to require any board member, offi-
cer, or employee with a financial relation-
ship or interest disclosed under clause (i) 
to recuse himself or herself from any re-
view under subsection (f)(3) or oversight 
under subsection (f)(4) with respect to 
such applicant or recipient. 
(B) FAILURE TO COMPLY.—The Secretary 
may disqualify an application or revoke an 
award under this section if a board member, of-
ficer, or employee has failed to comply with pro-
cedures required under subparagraph (A)(ii). 
(d) SELECTION OF THE PROGRAM CONSORTIUM.— 
(1) IN GENERAL.—The Secretary shall select 
the program consortium through an open, competi-
tive process. 
(2) MEMBERS.—The program consortium may 
include corporations, trade associations, institutions 
of higher education, National Laboratories, or other 
research institutions. After submitting a proposal 
under paragraph (4), the program consortium may 
not add members without the consent of the Sec-
retary.
554 
(3) TAX
STATUS.—The program consortium 
shall be an entity that is exempt from tax under sec-
tion 501(c)(3) of the Internal Revenue Code of 
1986. 
(4) SCHEDULE.—Not later than 180 days after 
the date of enactment of this Act, the Secretary 
shall solicit proposals from eligible consortia to per-
form the duties in subsection (c)(1), which shall be 
submitted not later than 360 days after the date of 
enactment of this Act. The Secretary shall select the 
program consortium not later than 18 months after 
such date of enactment. 
(5) APPLICATION.—Applicants shall submit a 
proposal including such information as the Secretary 
may require. At a minimum, each proposal shall— 
(A) list all members of the consortium; 
(B) fully describe the structure of the con-
sortium, including any provisions relating to in-
tellectual property; and 
(C) describe how the applicant would carry 
out the activities of the program consortium 
under this section. 
(6) ELIGIBILITY.—To be eligible to be selected 
as the program consortium, an applicant must be an 
entity whose members collectively have demonstrated
555 
capabilities in planning and managing research, de-
velopment, demonstration, and commercial applica-
tion programs in natural gas or other petroleum ex-
ploration or production. 
(7) CRITERION.—The Secretary shall consider 
the amount of the fee an applicant proposes to re-
ceive under subsection (g) in selecting a consortium 
under this section. 
(e) ANNUAL PLAN.— 
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.— 
(A) 
SOLICITATION
OF
RECOMMENDA-
TIONS.—Before drafting an annual plan under 
this subsection, the Secretary shall solicit spe-
cific written recommendations from the pro-
gram consortium for each element to be ad-
dressed in the plan, including those described in 
paragraph (4). The Secretary may request that 
the 
program 
consortium 
submit 
its 
rec-
ommendations in the form of a draft annual 
plan.
556 
(B) SUBMISSION
OF
RECOMMENDATIONS; 
OTHER COMMENT.—The Secretary shall submit 
the recommendations of the program consor-
tium under subparagraph (A) to the Ultra- 
Deepwater Advisory Committee established 
under section 945(a) for review, and such Advi-
sory Committee shall provide to the Secretary 
written comments by a date determined by the 
Secretary. The Secretary may also solicit com-
ments from any other experts. 
(C) CONSULTATION.—The Secretary shall 
consult regularly with the program consortium 
throughout the preparation of the annual plan. 
(3) PUBLICATION.—The Secretary shall trans-
mit to Congress and publish in the Federal Register 
the annual plan, along with any written comments 
received under paragraph (2)(A) and (B). 
(4) CONTENTS.—The annual plan shall describe 
the ongoing and prospective activities of the pro-
gram under this section and shall include— 
(A) a list of any solicitations for awards 
that the Secretary plans to issue to carry out 
research, development, demonstration, or com-
mercial application activities, including the top-
ics for such work, who would be eligible to
557 
apply, selection criteria, and the duration of 
awards; and 
(B) a description of the activities expected 
of the program consortium to carry out sub-
section (f)(4). 
(5) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the 
Secretary of the Interior, shall provide an annual re-
port to Congress with the President’s budget on the 
estimated cumulative increase in Federal royalty re-
ceipts (if any) resulting from the implementation of 
this part. The initial report under this paragraph 
shall be submitted in the first President’s budget fol-
lowing the completion of the first annual plan re-
quired under this subsection. 
(f) AWARDS.— 
(1) IN GENERAL.—The Secretary shall make 
awards to carry out research, development, dem-
onstration, and commercial application activities 
under the program under this section. The program 
consortium shall not be eligible to receive such 
awards, but members of the program consortium 
may receive such awards. 
(2) PROPOSALS.—The Secretary shall solicit 
proposals for awards under this subsection in such
558 
manner and at such time as the Secretary may pre-
scribe, in consultation with the program consortium. 
(3) REVIEW.—The Secretary shall make awards 
under this subsection through a competitive process, 
which shall include a review by individuals selected 
by the Secretary. Such individuals shall include, for 
each application, Federal officials, the program con-
sortium, and non-Federal experts who are not board 
members, officers, or employees of the program con-
sortium or of a member of the program consortium. 
(4) OVERSIGHT.— 
(A) IN
GENERAL.—The program consor-
tium shall oversee the implementation of 
awards under this subsection, consistent with 
the annual plan under subsection (e), including 
disbursing funds and monitoring activities car-
ried out under such awards for compliance with 
the terms and conditions of the awards. 
(B) EFFECT.—Nothing in subparagraph 
(A) shall limit the authority or responsibility of 
the Secretary to oversee awards, or limit the 
authority of the Secretary to review or revoke 
awards. 
(C) PROVISION
OF
INFORMATION.—The 
Secretary shall provide to the program consor-
560 
SEC. 943. UNCONVENTIONAL NATURAL GAS AND OTHER PE-
TROLEUM RESOURCES PROGRAM. 
(a) IN GENERAL.—The Secretary shall carry out ac-
tivities under subsection 941(b)(3), to maximize the use 
of the onshore unconventional natural gas and other petro-
leum resources of the United States, by increasing the 
supply of such resources, through reducing the cost and 
increasing the efficiency of exploration for and production 
of such resources, while improving safety and minimizing 
environmental impacts. 
(b) AWARDS.— 
(1) IN
GENERAL.—The Secretary shall carry 
out this section through awards to research con-
sortia made through an open, competitive process. 
As a condition of award of funds, qualified research 
consortia shall— 
(A) demonstrate capability and experience 
in unconventional onshore natural gas or other 
petroleum research and development; 
(B) provide a research plan that dem-
onstrates how additional natural gas or oil pro-
duction will be achieved; and 
(C) at the request of the Secretary, provide 
technical advice to the Secretary for the pur-
poses of developing the annual plan required 
under subsection (e).
561 
(2) PRODUCTION
POTENTIAL.—The Secretary 
shall seek to ensure that the number and types of 
awards made under this subsection have reasonable 
potential to lead to additional oil and natural gas 
production on Federal lands. 
(3) SCHEDULE.—To carry out this subsection, 
not later than 180 days after the date of enactment 
of this Act, the Secretary shall solicit proposals from 
research consortia, which shall be submitted not 
later than 360 days after the date of enactment of 
this Act. The Secretary shall select the first group 
of research consortia to receive awards under this 
subsection not later than 18 months after such date 
of enactment. 
(c) AUDIT.—The Secretary shall retain an inde-
pendent, commercial auditor to determine the extent to 
which funds provided under awards made under this sec-
tion have been expended in a manner consistent with the 
purposes and requirements of this part. The auditor shall 
transmit a report annually to the Secretary, who shall 
transmit the report to Congress, along with a plan to rem-
edy any deficiencies cited in the report. 
(d) FOCUS AREAS FOR AWARDS.— 
(1) UNCONVENTIONAL
RESOURCES.—Awards 
from allocations under section 949(d)(2) shall focus
562 
on areas including advanced coalbed methane, deep 
drilling, natural gas production from tight sands, 
natural gas production from gas shales, stranded 
gas, innovative exploration and production tech-
niques, enhanced recovery techniques, and environ-
mental mitigation of unconventional natural gas and 
other petroleum resources exploration and produc-
tion. 
(2) SMALL PRODUCERS.—Awards from alloca-
tions under section 949(d)(3) shall be made to con-
sortia consisting of small producers or organized pri-
marily for the benefit of small producers, and shall 
focus on areas including complex geology involving 
rapid changes in the type and quality of the oil and 
gas reservoirs across the reservoir; low reservoir 
pressure; unconventional natural gas reservoirs in 
coalbeds, deep reservoirs, tight sands, or shales; and 
unconventional oil reservoirs in tar sands and oil 
shales. 
(e) ANNUAL PLAN.— 
(1) IN GENERAL.—The program under this sec-
tion shall be carried out pursuant to an annual plan 
prepared by the Secretary in accordance with para-
graph (2). 
(2) DEVELOPMENT.—
563 
(A) WRITTEN
RECOMMENDATIONS.—Be-
fore drafting an annual plan under this sub-
section, the Secretary shall solicit specific writ-
ten recommendations from the research con-
sortia receiving awards under subsection (b) 
and the Unconventional Resources Technology 
Advisory Committee for each element to be ad-
dressed in the plan, including those described in 
subparagraph (D). 
(B) CONSULTATION.—The Secretary shall 
consult regularly with the research consortia 
throughout the preparation of the annual plan. 
(C) PUBLICATION.—The Secretary shall 
transmit to Congress and publish in the Fed-
eral Register the annual plan, along with any 
written comments received under subparagraph 
(A). 
(D) CONTENTS.—The annual plan shall 
describe the ongoing and prospective activities 
under this section and shall include a list of any 
solicitations for awards that the Secretary plans 
to issue to carry out research, development, 
demonstration, or commercial application activi-
ties, including the topics for such work, who
564 
would be eligible to apply, selection criteria, and 
the duration of awards. 
(3) ESTIMATES
OF
INCREASED
ROYALTY
RE-
CEIPTS.—The Secretary, in consultation with the 
Secretary of the Interior, shall provide an annual re-
port to Congress with the President’s budget on the 
estimated cumulative increase in Federal royalty re-
ceipts (if any) resulting from the implementation of 
this part. The initial report under this paragraph 
shall be submitted in the first President’s budget fol-
lowing the completion of the first annual plan re-
quired under this subsection. 
(f) ACTIVITIES BY THE UNITED STATES GEOLOGI-
CAL SURVEY.—The Secretary of the Interior, through the 
United States Geological Survey, shall, where appropriate, 
carry out programs of long-term research to complement 
the programs under this section. 
SEC. 944. ADDITIONAL REQUIREMENTS FOR AWARDS. 
(a) DEMONSTRATION PROJECTS.—An application for 
an award under this part for a demonstration project shall 
describe with specificity the intended commercial use of 
the technology to be demonstrated. 
(b) FLEXIBILITY
IN LOCATING DEMONSTRATION 
PROJECTS.—Subject to the limitation in section 941(c), 
a demonstration project under this part relating to an
565 
ultra-deepwater technology or an ultra-deepwater architec-
ture may be conducted in deepwater depths. 
(c) INTELLECTUAL PROPERTY AGREEMENTS.—If an 
award under this part is made to a consortium (other than 
the program consortium), the consortium shall provide to 
the Secretary a signed contract agreed to by all members 
of the consortium describing the rights of each member 
to intellectual property used or developed under the award. 
(d) TECHNOLOGY TRANSFER.—2.5 percent of the 
amount of each award made under this part shall be des-
ignated for technology transfer and outreach activities 
under this title. 
(e) COST SHARING REDUCTION FOR INDEPENDENT 
PRODUCERS.—In applying the cost sharing requirements 
under section 972 to an award under this part the Sec-
retary may reduce or eliminate the non-Federal require-
ment if the Secretary determines that the reduction is nec-
essary and appropriate considering the technological risks 
involved in the project. 
SEC. 945. ADVISORY COMMITTEES. 
(a) ULTRA-DEEPWATER ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
retary shall establish an advisory committee to be 
known as the Ultra-Deepwater Advisory Committee.
566 
(2) MEMBERSHIP.—The advisory committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) individuals with extensive research ex-
perience or operational knowledge of offshore 
natural gas and other petroleum exploration 
and production; 
(B) individuals broadly representative of 
the affected interests in ultra-deepwater natural 
gas and other petroleum production, including 
interests in environmental protection and safe 
operations; 
(C) no individuals who are Federal employ-
ees; and 
(D) no individuals who are board members, 
officers, or employees of the program consor-
tium. 
(3) DUTIES.—The advisory committee under 
this subsection shall— 
(A) advise the Secretary on the develop-
ment and implementation of programs under 
this part related to ultra-deepwater natural gas 
and other petroleum resources; and 
(B) carry out section 942(e)(2)(B).
567 
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(b) UNCONVENTIONAL
RESOURCES
TECHNOLOGY 
ADVISORY COMMITTEE.— 
(1) ESTABLISHMENT.—Not later than 270 days 
after the date of enactment of this Act, the Sec-
retary shall establish an advisory committee to be 
known as the Unconventional Resources Technology 
Advisory Committee. 
(2) MEMBERSHIP.—The advisory committee 
under this subsection shall be composed of members 
appointed by the Secretary including— 
(A) a majority of members who are em-
ployees or representatives of independent pro-
ducers of natural gas and other petroleum, in-
cluding small producers; 
(B) individuals with extensive research ex-
perience or operational knowledge of unconven-
tional natural gas and other petroleum resource 
exploration and production;
568 
(C) individuals broadly representative of 
the affected interests in unconventional natural 
gas and other petroleum resource exploration 
and production, including interests in environ-
mental protection and safe operations; and 
(D) no individuals who are Federal em-
ployees. 
(3) DUTIES.—The advisory committee under 
this subsection shall advise the Secretary on the de-
velopment and implementation of activities under 
this part related to unconventional natural gas and 
other petroleum resources. 
(4) COMPENSATION.—A member of the advi-
sory committee under this subsection shall serve 
without compensation but shall receive travel ex-
penses in accordance with applicable provisions 
under subchapter I of chapter 57 of title 5, United 
States Code. 
(c) PROHIBITION.—No advisory committee estab-
lished under this section shall make recommendations on 
funding awards to particular consortia or other entities, 
or for specific projects. 
SEC. 946. LIMITS ON PARTICIPATION. 
An entity shall be eligible to receive an award under 
this part only if the Secretary finds—
569 
(1) that the entity’s participation in the pro-
gram under this part would be in the economic in-
terest of the United States; and 
(2) that either— 
(A) the entity is a United States-owned en-
tity organized under the laws of the United 
States; or 
(B) the entity is organized under the laws 
of the United States and has a parent entity or-
ganized under the laws of a country that af-
fords— 
(i) to United States-owned entities op-
portunities, comparable to those afforded 
to any other entity, to participate in any 
cooperative research venture similar to 
those authorized under this part; 
(ii) to United States-owned entities 
local investment opportunities comparable 
to those afforded to any other entity; and 
(iii) adequate and effective protection 
for the intellectual property rights of 
United States-owned entities. 
SEC. 947. SUNSET. 
The authority provided by this part shall terminate 
on September 30, 2011.
570 
SEC. 948. DEFINITIONS. 
In this part: 
(1) 
DEEPWATER.—The 
term 
‘‘deepwater’’ 
means a water depth that is greater than 200 but 
less than 1,500 meters. 
(2) INDEPENDENT
PRODUCER
OF
OIL
OR 
GAS.— 
(A) IN GENERAL.—The term ‘‘independent 
producer of oil or gas’’ means any person that 
produces oil or gas other than a person to 
whom subsection (c) of section 613A of the In-
ternal Revenue Code of 1986 does not apply by 
reason of paragraph (2) (relating to certain re-
tailers) or paragraph (4) (relating to certain re-
finers) of section 613A(d) of such Code. 
(B) RULES FOR APPLYING PARAGRAPHS (2) 
AND (4) OF SECTION 613A(d).—For purposes of 
subparagraph (A), paragraphs (2) and (4) of 
section 613A(d) of the Internal Revenue Code 
of 1986 shall be applied by substituting ‘‘cal-
endar year’’ for ‘‘taxable year’’ each place it ap-
pears in such paragraphs. 
(3) PROGRAM CONSORTIUM.—The term ‘‘pro-
gram consortium’’ means the consortium selected 
under section 942(d).
571 
(4) REMOTE OR INCONSEQUENTIAL.—The term 
‘‘remote or inconsequential’’ has the meaning given 
that term in regulations issued by the Office of Gov-
ernment Ethics under section 208(b)(2) of title 18, 
United States Code. 
(5) SMALL PRODUCER.—The term ‘‘small pro-
ducer’’ means an entity organized under the laws of 
the United States with production levels of less than 
1,000 barrels per day of oil equivalent. 
(6) ULTRA-DEEPWATER.—The term ‘‘ultra- 
deepwater’’ means a water depth that is equal to or 
greater than 1,500 meters. 
(7) ULTRA-DEEPWATER
ARCHITECTURE.—The 
term ‘‘ultra-deepwater architecture’’ means the inte-
gration of technologies for the exploration for, or 
production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths. 
(8) ULTRA-DEEPWATER
TECHNOLOGY.—The 
term ‘‘ultra-deepwater technology’’ means a discrete 
technology that is specially suited to address 1 or 
more challenges associated with the exploration for, 
or production of, natural gas or other petroleum re-
sources located at ultra-deepwater depths. 
(9) UNCONVENTIONAL
NATURAL
GAS
AND 
OTHER PETROLEUM RESOURCE.—The term ‘‘uncon-
572 
ventional natural gas and other petroleum resource’’ 
means natural gas and other petroleum resource lo-
cated onshore in an economically inaccessible geo-
logical formation, including resources of small pro-
ducers. 
SEC. 949. FUNDING. 
(a) IN GENERAL.— 
(1) OIL AND GAS LEASE INCOME.—For each of 
fiscal years 2004 through 2013, from any Federal 
royalties, rents, and bonuses derived from Federal 
onshore and offshore oil and gas leases issued under 
the Outer Continental Shelf Lands Act and the Min-
eral Leasing Act which are deposited in the Treas-
ury, and after distribution of any such funds as de-
scribed in subsection (c), $150,000,000 shall be de-
posited into the Ultra-Deepwater and Unconven-
tional Natural Gas and Other Petroleum Research 
Fund (in this section referred to as the Fund). For 
purposes of this section, the term ‘‘royalties’’ ex-
cludes proceeds from the sale of royalty production 
taken in kind and royalty production that is trans-
ferred under section 27(a)(3) of the Outer Conti-
nental Shelf Lands Act (43 U.S.C. 1353(a)(3)). 
(2) AUTHORIZATION OF APPROPRIATIONS.—In 
addition to amounts described in paragraph (1),
573 
there are authorized to be appropriated to the Sec-
retary, to be deposited in the Fund, $50,000,000 for 
each of the fiscal years 2004 through 2013, to re-
main available until expended. 
(b) OBLIGATIONAL
AUTHORITY.—Monies in the 
Fund shall be available to the Secretary for obligation 
under this part without fiscal year limitation, to remain 
available until expended. 
(c) PRIOR DISTRIBUTIONS.—The distributions de-
scribed in subsection (a) are those required by law— 
(1) to States and to the Reclamation Fund 
under the Mineral Leasing Act (30 U.S.C. 191(a)); 
and 
(2) to other funds receiving monies from Fed-
eral oil and gas leasing programs, including— 
(A) any recipients pursuant to section 8(g) 
of the Outer Continental Shelf Lands Act (43 
U.S.C. 1337(g)); 
(B) the Land and Water Conservation 
Fund, pursuant to section 2(c) of the Land and 
Water Conservation Fund Act of 1965 (16 
U.S.C. 4601–5(c)); 
(C) the Historic Preservation Fund, pursu-
ant to section 108 of the National Historic 
Preservation Act (16 U.S.C. 470h); and
574 
(D) the Secure Energy Reinvestment 
Fund. 
(d) ALLOCATION.—Amounts obligated from the Fund 
under this section in each fiscal year shall be allocated 
as follows: 
(1) 50 percent shall be for activities under sec-
tion 942. 
(2) 35 percent shall be for activities under sec-
tion 943(d)(1). 
(3) 10 percent shall be for activities under sec-
tion 943(d)(2). 
(4) 5 percent shall be for research under section 
941(d). 
(e) FUND.—There is hereby established in the Treas-
ury of the United States a separate fund to be known as 
the ‘‘Ultra-Deepwater and Unconventional Natural Gas 
and Other Petroleum Research Fund’’. 
Subtitle F—Science 
SEC. 951. SCIENCE. 
(a) IN GENERAL.—The following sums are author-
ized to be appropriated to the Secretary for research, de-
velopment, demonstration, and commercial application ac-
tivities of the Office of Science, including activities author-
ized under this subtitle, including the amounts authorized 
under the amendment made by section 958(c)(2)(C), and
575 
including basic energy sciences, advanced scientific com-
puting research, biological and environmental research, fu-
sion energy sciences, high energy physics, nuclear physics, 
and research analysis and infrastructure support: 
(1) For fiscal year 2004, $3,785,000,000. 
(2) For fiscal year 2005, $4,153,000,000. 
(3) For fiscal year 2006, $4,618,000,000. 
(4) For fiscal year 2007, $5,310,000,000. 
(5) For fiscal year 2008, $5,800,000,000. 
(b) ALLOCATIONS.—From amounts authorized under 
subsection (a), the following sums are authorized: 
(1) For activities of the Fusion Energy Sciences 
Program, including activities under sections 952 and 
953— 
(A) for fiscal year 2004, $335,000,000; 
(B) for fiscal year 2005, $349,000,000; 
(C) for fiscal year 2006, $362,000,000; 
(D) for fiscal year 2007, $377,000,000; 
and 
(E) for fiscal year 2008, $393,000,000. 
(2) For the Spallation Neutron Source— 
(A) for construction in fiscal year 2004, 
$124,600,000; 
(B) for construction in fiscal year 2005, 
$79,800,000;
576 
(C) for completion of construction in fiscal 
year 2006, $41,100,000; and 
(D) for other project costs (including re-
search and development necessary to complete 
the project, preoperations costs, and capital 
equipment 
related 
to 
construction), 
$103,279,000 for the period encompassing fis-
cal years 2003 through 2006, to remain avail-
able until expended through September 30, 
2006. 
(3) For Catalysis Research activities under sec-
tion 956— 
(A) for fiscal year 2004, $33,000,000; 
(B) for fiscal year 2005, $35,000,000; 
(C) for fiscal year 2006, $36,500,000; 
(D) for fiscal year 2007, $38,200,000; and 
(E) for fiscal year 2008, $40,100,000. 
(4) For Nanoscale Science and Engineering Re-
search activities under section 957— 
(A) for fiscal year 2004, $270,000,000; 
(B) for fiscal year 2005, $292,000,000; 
(C) for fiscal year 2006, $322,000,000; 
(D) for fiscal year 2007, $355,000,000; 
and 
(E) for fiscal year 2008, $390,000,000.
577 
(5) For activities under section 957(c), from 
the amounts authorized under paragraph (4) of this 
subsection— 
(A) for fiscal year 2004, $135,000,000; 
(B) for fiscal year 2005, $150,000,000; 
(C) for fiscal year 2006, $120,000,000; 
(D) for fiscal year 2007, $100,000,000; 
and 
(E) for fiscal year 2008, $125,000,000. 
(6) For activities in the Genomes to Life Pro-
gram under section 959— 
(A) for fiscal year 2004, $100,000,000; 
and 
(B) for fiscal years 2005 through 2008, 
such sums as may be necessary. 
(7) For activities in the Energy-Water Supply 
Program under section 961, $30,000,000 for each of 
fiscal years 2004 through 2008. 
(c) ITER CONSTRUCTION.—In addition to the funds 
authorized under subsection (b)(1), such sums as may be 
necessary for costs associated with ITER construction, 
consistent with limitations under section 952.
578 
SEC. 952. UNITED STATES PARTICIPATION IN ITER. 
(a) IN GENERAL.—The United States may partici-
pate in ITER in accordance with the provisions of this 
section. 
(b) AGREEMENT.— 
(1) IN GENERAL.—The Secretary is authorized 
to negotiate an agreement for United States partici-
pation in ITER. 
(2) CONTENTS.—Any agreement for United 
States participation in ITER shall, at a minimum— 
(A) clearly define the United States finan-
cial contribution to construction and operating 
costs; 
(B) ensure that the share of ITER’s high- 
technology components manufactured in the 
United States is at least proportionate to the 
United States financial contribution to ITER; 
(C) ensure that the United States will not 
be financially responsible for cost overruns in 
components manufactured in other ITER par-
ticipating countries; 
(D) guarantee the United States full ac-
cess to all data generated by ITER; 
(E) enable United States researchers to 
propose and carry out an equitable share of the 
experiments at ITER;
579 
(F) provide the United States with a role 
in all collective decisionmaking related to ITER; 
and 
(G) describe the process for discontinuing 
or decommissioning ITER and any United 
States role in those processes. 
(c) PLAN.—The Secretary, in consultation with the 
Fusion Energy Sciences Advisory Committee, shall de-
velop a plan for the participation of United States sci-
entists in ITER that shall include the United States re-
search agenda for ITER, methods to evaluate whether 
ITER is promoting progress toward making fusion a reli-
able and affordable source of power, and a description of 
how work at ITER will relate to other elements of the 
United States fusion program. The Secretary shall request 
a review of the plan by the National Academy of Sciences. 
(d) LIMITATION.—No funds shall be expended for the 
construction of ITER until the Secretary has transmitted 
to Congress— 
(1) the agreement negotiated pursuant to sub-
section (b) and 120 days have elapsed since that 
transmission; 
(2) a report describing the management struc-
ture of ITER and providing a fixed dollar estimate 
of the cost of United States participation in the con-
580 
struction of ITER, and 120 days have elapsed since 
that transmission; 
(3) a report describing how United States par-
ticipation in ITER will be funded without reducing 
funding for other programs in the Office of Science, 
including other fusion programs, and 60 days have 
elapsed since that transmission; and 
(4) the plan required by subsection (c) (but not 
the National Academy of Sciences review of that 
plan), and 60 days have elapsed since that trans-
mission. 
(e) ALTERNATIVE TO ITER.—If at any time during 
the negotiations on ITER, the Secretary determines that 
construction and operation of ITER is unlikely or infeasi-
ble, the Secretary shall send to Congress, as part of the 
budget request for the following year, a plan for imple-
menting the domestic burning plasma experiment known 
as FIRE, including costs and schedules for such a plan. 
The Secretary shall refine such plan in full consultation 
with the Fusion Energy Sciences Advisory Committee and 
shall also transmit such plan to the National Academy of 
Sciences for review. 
(f) DEFINITIONS.—In this section and sections 
951(b)(1) and (c):
581 
(1) CONSTRUCTION.—The term ‘‘construction’’ 
means the physical construction of the ITER facil-
ity, and the physical construction, purchase, or man-
ufacture of equipment or components that are spe-
cifically designed for the ITER facility, but does not 
mean the design of the facility, equipment, or com-
ponents. 
(2) FIRE.—The term ‘‘FIRE’’ means the Fu-
sion Ignition Research Experiment, the fusion re-
search experiment for which design work has been 
supported by the Department as a possible alter-
native burning plasma experiment in the event that 
ITER fails to move forward. 
(3) ITER.—The term ‘‘ITER’’ means the 
international burning plasma fusion research project 
in which the President announced United States 
participation on January 30, 2003. 
SEC. 953. PLAN FOR FUSION ENERGY SCIENCES PROGRAM. 
(a) DECLARATION OF POLICY.—It shall be the policy 
of the United States to conduct research, development, 
demonstration, and commercial application to provide for 
the scientific, engineering, and commercial infrastructure 
necessary to ensure that the United States is competitive 
with other nations in providing fusion energy for its own 
needs and the needs of other nations, including by dem-
582 
onstrating electric power or hydrogen production for the 
United States energy grid utilizing fusion energy at the 
earliest date possible. 
(b) PLANNING.— 
(1) IN
GENERAL.—Not later than 180 days 
after the date of enactment of this Act, the Sec-
retary shall present to Congress a plan, with pro-
posed cost estimates, budgets, and potential inter-
national partners, for the implementation of the pol-
icy described in subsection (a). The plan shall ensure 
that— 
(A) existing fusion research facilities are 
more fully utilized; 
(B) fusion science, technology, theory, ad-
vanced computation, modeling, and simulation 
are strengthened; 
(C) new magnetic and inertial fusion re-
search facilities are selected based on scientific 
innovation, cost effectiveness, and their poten-
tial to advance the goal of practical fusion en-
ergy at the earliest date possible, and those that 
are selected are funded at a cost-effective rate; 
(D) communication of scientific results and 
methods between the fusion energy science com-
583 
munity and the broader scientific and tech-
nology communities is improved; 
(E) inertial confinement fusion facilities 
are utilized to the extent practicable for the 
purpose of inertial fusion energy research and 
development; and 
(F) attractive alternative inertial and mag-
netic fusion energy approaches are more fully 
explored. 
(2) COSTS AND SCHEDULES.—Such plan shall 
also address the status of and, to the degree pos-
sible, costs and schedules for— 
(A) in coordination with the program 
under section 960, the design and implementa-
tion of international or national facilities for the 
testing of fusion materials; and 
(B) the design and implementation of 
international or national facilities for the test-
ing and development of key fusion technologies. 
SEC. 954. SPALLATION NEUTRON SOURCE. 
(a) DEFINITION.—For the purposes of this section, 
the term ‘‘Spallation Neutron Source’’ means Department 
Project 99–E–334, Oak Ridge National Laboratory, Oak 
Ridge, Tennessee.
584 
(b) REPORT.—The Secretary shall report on the 
Spallation Neutron Source as part of the Department’s 
annual budget submission, including a description of the 
achievement of milestones, a comparison of actual costs 
to estimated costs, and any changes in estimated project 
costs or schedule. 
(c) LIMITATIONS.—The total amount obligated by the 
Department, including prior year appropriations, for the 
Spallation Neutron Source shall not exceed— 
(1) $1,192,700,000 for costs of construction; 
(2) $219,000,000 for other project costs; and 
(3) $1,411,700,000 for total project cost. 
SEC. 955. SUPPORT FOR SCIENCE AND ENERGY FACILITIES 
AND INFRASTRUCTURE. 
(a) FACILITY AND INFRASTRUCTURE POLICY.—The 
Secretary shall develop and implement a strategy for fa-
cilities and infrastructure supported primarily from the 
Office of Science, the Office of Energy Efficiency and Re-
newable Energy, the Office of Fossil Energy, or the Office 
of Nuclear Energy, Science, and Technology Programs at 
all National Laboratories and single-purpose research fa-
cilities. Such strategy shall provide cost-effective means 
for— 
(1) maintaining existing facilities and infra-
structure, as needed;
585 
(2) closing unneeded facilities; 
(3) making facility modifications; and 
(4) building new facilities. 
(b) REPORT.— 
(1) IN GENERAL.—The Secretary shall prepare 
and transmit, along with the President’s budget re-
quest to Congress for fiscal year 2006, a report con-
taining the strategy developed under subsection (a). 
(2) CONTENTS.—For each National Laboratory 
and single-purpose research facility, for the facilities 
primarily used for science and energy research, such 
report shall contain— 
(A) the current priority list of proposed fa-
cilities and infrastructure projects, including 
cost and schedule requirements; 
(B) a current 10-year plan that dem-
onstrates the reconfiguration of its facilities and 
infrastructure to meet its missions and to ad-
dress its long-term operational costs and return 
on investment; 
(C) the total current budget for all facili-
ties and infrastructure funding; and 
(D) the current status of each facility and 
infrastructure project compared to the original 
baseline cost, schedule, and scope.
586 
SEC. 956. CATALYSIS RESEARCH AND DEVELOPMENT PRO-
GRAM. 
(a) ESTABLISHMENT.—The Secretary, through the 
Office of Science, shall support a program of research and 
development in catalysis science consistent with the De-
partment’s statutory authorities related to research and 
development. The program shall include efforts to— 
(1) enable catalyst design using combinations of 
experimental and mechanistic methodologies coupled 
with computational modeling of catalytic reactions at 
the molecular level; 
(2) develop techniques for high throughput syn-
thesis, assay, and characterization at nanometer and 
subnanometer scales in situ under actual operating 
conditions; 
(3) synthesize catalysts with specific site archi-
tectures; 
(4) conduct research on the use of precious 
metals for catalysis; and 
(5) translate molecular understanding to the 
design of catalytic compounds. 
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car-
rying out the program under this section, the Director of 
the Office of Science shall—
587 
(1) support both individual investigators and 
multidisciplinary teams of investigators to pioneer 
new approaches in catalytic design; 
(2) develop, plan, construct, acquire, share, or 
operate special equipment or facilities for the use of 
investigators in collaboration with national user fa-
cilities such as nanoscience and engineering centers; 
(3) support technology transfer activities to 
benefit industry and other users of catalysis science 
and engineering; and 
(4) coordinate research and development activi-
ties with industry and other Federal agencies. 
(c) TRIENNIAL ASSESSMENT.—The National Acad-
emy of Sciences shall review the catalysis program every 
3 years to report on gains made in the fundamental 
science of catalysis and its progress towards developing 
new fuels for energy production and material fabrication 
processes. 
SEC. 957. NANOSCALE SCIENCE AND ENGINEERING RE-
SEARCH, DEVELOPMENT, DEMONSTRATION, 
AND COMMERCIAL APPLICATION. 
(a) 
ESTABLISHMENT.—The 
Secretary, 
acting 
through the Office of Science, shall support a program of 
research, development, demonstration, and commercial ap-
plication in nanoscience and nanoengineering. The pro-
588 
gram shall include efforts to further the understanding of 
the chemistry, physics, materials science, and engineering 
of phenomena on the scale of nanometers and to apply 
that knowledge to the Department’s mission areas. 
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car-
rying out the program under this section, the Office of 
Science shall— 
(1) support both individual investigators and 
teams of investigators, including multidisciplinary 
teams; 
(2) carry out activities under subsection (c); 
(3) support technology transfer activities to 
benefit industry and other users of nanoscience and 
nanoengineering; 
(4) coordinate research and development activi-
ties with other Department programs, industry, and 
other Federal agencies; 
(5) ensure that societal and ethical concerns 
will be addressed as the technology is developed by— 
(A) establishing a research program to 
identify societal and ethical concerns related to 
nanotechnology, and ensuring that the results 
of such research are widely disseminated; and
589 
(B) integrating, insofar as possible, re-
search on societal and ethical concerns with 
nanotechnology research and development; and 
(6) ensure that the potential of nanotechnology 
to produce or facilitate the production of clean, inex-
pensive 
energy 
is 
realized 
by 
supporting 
nanotechnology energy applications research and de-
velopment. 
(c) NANOSCIENCE
AND
NANOENGINEERING
RE-
SEARCH CENTERS AND MAJOR INSTRUMENTATION.— 
(1) IN
GENERAL.—The Secretary shall carry 
out projects to develop, plan, construct, acquire, op-
erate, or support special equipment, instrumenta-
tion, or facilities for investigators conducting re-
search 
and 
development 
in 
nanoscience 
and 
nanoengineering. 
(2) ACTIVITIES.—Projects under paragraph (1) 
may include the measurement of properties at the 
scale of nanometers, manipulation at such scales, 
and the integration of technologies based on 
nanoscience or nanoengineering into bulk materials 
or other technologies. 
(3) FACILITIES.—Facilities under paragraph 
(1) may include electron microcharacterization facili-
590 
ties, microlithography facilities, scanning probe fa-
cilities, and related instrumentation. 
(4) COLLABORATIONS.—The Secretary shall en-
courage collaborations among Department programs, 
institutions of higher education, laboratories, and in-
dustry at facilities under this subsection. 
SEC. 958. ADVANCED SCIENTIFIC COMPUTING FOR ENERGY 
MISSIONS. 
(a) IN GENERAL.—The Secretary, acting through the 
Office of Science, shall support a program to advance the 
Nation’s computing capability across a diverse set of 
grand challenge, computationally based, science problems 
related to departmental missions. 
(b) DUTIES OF THE OFFICE OF SCIENCE.—In car-
rying out the program under this section, the Office of 
Science shall— 
(1) advance basic science through computation 
by developing software to solve grand challenge 
science problems on new generations of computing 
platforms in collaboration with other Department 
program offices; 
(2) enhance the foundations for scientific com-
puting by developing the basic mathematical and 
computing systems software needed to take full ad-
vantage of the computing capabilities of computers
591 
with peak speeds of 100 teraflops or more, some of 
which may be unique to the scientific problem of in-
terest; 
(3) enhance national collaboratory and net-
working capabilities by developing software to inte-
grate geographically separated researchers into ef-
fective research teams and to facilitate access to and 
movement and analysis of large (petabyte) data sets; 
(4) develop and maintain a robust scientific 
computing hardware infrastructure to ensure that 
the computing resources needed to address depart-
mental missions are available; and 
(5) explore new computing approaches and 
technologies that promise to advance scientific com-
puting, including developments in quantum com-
puting. 
(c) HIGH-PERFORMANCE COMPUTING ACT OF 1991 
AMENDMENTS.—The High-Performance Computing Act 
of 1991 is amended— 
(1) in section 4 (15 U.S.C. 5503)— 
(A) in paragraph (3) by striking ‘‘means’’ 
and inserting ‘‘and networking and information 
technology mean’’, and by striking ‘‘(including 
vector supercomputers and large scale parallel 
systems)’’; and
592 
(B) in paragraph (4), by striking ‘‘packet 
switched’’; and 
(2) in section 203 (15 U.S.C. 5523)— 
(A) in subsection (a), by striking all after 
‘‘As part of the’’ and inserting ‘‘Networking 
and Information Technology Research and De-
velopment Program, the Secretary of Energy 
shall conduct basic and applied research in net-
working and information technology, with em-
phasis on supporting fundamental research in 
the physical sciences and engineering, and en-
ergy applications; providing supercomputer ac-
cess and advanced communication capabilities 
and facilities to scientific researchers; and de-
veloping tools for distributed scientific collabo-
ration.’’; 
(B) in subsection (b), by striking ‘‘Pro-
gram’’ and inserting ‘‘Networking and Informa-
tion Technology Research and Development 
Program’’; and 
(C) by amending subsection (e) to read as 
follows: 
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated to the Secretary of En-
ergy to carry out the Networking and Information Tech-
593 
nology Research and Development Program such sums as 
may be necessary for fiscal years 2004 through 2008.’’. 
(d) COORDINATION.—The Secretary shall ensure that 
the program under this section is integrated and con-
sistent with— 
(1) the Advanced Simulation and Computing 
Program, formerly known as the Accelerated Stra-
tegic Computing Initiative, of the National Nuclear 
Security Administration; and 
(2) other national efforts related to advanced 
scientific computing for science and engineering. 
(e) REPORT.— 
(1) IN GENERAL.—Before undertaking any new 
initiative to develop any new advanced architecture 
for high-speed computing, the Secretary, through the 
Director of the Office of Science, shall transmit a re-
port to Congress describing— 
(A) the expected duration and cost of the 
initiative; 
(B) the technical milestones the initiative 
is designed to achieve; 
(C) how institutions of higher education 
and private firms will participate in the initia-
tive; and
594 
(D) why the goals of the initiative could 
not be achieved through existing programs. 
(2) LIMITATION.—No funds may be expended 
on any initiative described in paragraph (1) until 30 
days after the report required by that paragraph is 
transmitted to Congress. 
SEC. 959. GENOMES TO LIFE PROGRAM. 
(a) PROGRAM.— 
(1) ESTABLISHMENT.—The Secretary shall es-
tablish a research, development, and demonstration 
program in genetics, protein science, and computa-
tional biology to support the energy, national secu-
rity, and environmental mission of the Department. 
(2) GRANTS.—The program shall support indi-
vidual investigators and multidisciplinary teams of 
investigators through competitive, merit-reviewed 
grants. 
(3) CONSULTATION.—In carrying out the pro-
gram, the Secretary shall consult with other Federal 
agencies that conduct genetic and protein research. 
(b) GOALS.—The program shall have the goal of de-
veloping technologies and methods based on the biological 
functions of genomes, microbes, and plants that— 
(1) can facilitate the production of fuels, includ-
ing hydrogen;