(3) coordinated with ongoing secondary battery 
use programs at the National Laboratories and in 
industry. 
(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. 
(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. 307. DEFINITION OF COST-EFFECTIVE. 
For purposes of this subtitle, the term ‘‘cost-effec-
tive’’ means resulting in a simple payback of costs in 10 
years or less. 
SEC. 308. AUTHORIZATION OF APPROPRIATIONS. 
In addition to the sums authorized in the Steel and 
Aluminum Energy Conservation and Technology Competi-
tiveness Act of 1988, as amended in section 304 of this 
Act, the following sums are authorized to be appropriated 
to the Secretary for the purposes of carrying out this sub-
title: 
(1) For fiscal year 2006, $620,000,000, includ-
ing— 
(A) $200,000,000 for carrying out the ve-
hicles program under section 302; 
(B) $100,000,000 for carrying out the 
buildings program under section 303, of which 
$10,000,000 shall be for the grant program 
under section 303(c); 
(C) $100,000,000 for carrying out the in-
dustries program under section 304(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 304(b);
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 305; and 
(F) $4,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 306. 
(2) For fiscal year 2007, $700,000,000, includ-
ing— 
(A) $240,000,000 for carrying out the ve-
hicles program under section 302; 
(B) $130,000,000 for carrying out the 
buildings program under section 303, of which 
$10,000,000 shall be for the grant program 
under section 303(c); 
(C) $115,000,000 for carrying out the in-
dustries program under section 304(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 304(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 305; and 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 306.
(3) For fiscal year 2008, $800,000,000, includ-
ing— 
(A) $270,000,000 for carrying out the ve-
hicles program under section 302; 
(B) $160,000,000 for carrying out the 
buildings program under section 303, of which 
$10,000,000 shall be for the grant program 
under section 303(c); 
(C) $140,000,000 for carrying out the in-
dustries program under section 304(a); 
(D) $2,000,000 for carrying out the elec-
tric motor control technology program under 
section 304(b); 
(E) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 305; and 
(F) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 306. 
(4) For fiscal year 2009, $925,000,000, includ-
ing— 
(A) $310,000,000 for carrying out the ve-
hicles program under section 302; 
(B) $200,000,000 for carrying out the 
buildings program under section 303, of which
$10,000,000 shall be for the grant program 
under section 303(c); 
(C) $170,000,000 for carrying out the in-
dustries program under section 304(a); 
(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 305; and 
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 306. 
(5) For fiscal year 2010, $1,000,000,000, in-
cluding— 
(A) $340,000,000 for carrying out the ve-
hicles program under section 302; 
(B) $240,000,000 for carrying out the 
buildings program under section 303, of which 
$10,000,000 shall be for the grant program 
under section 303(c); 
(C) $190,000,000 for carrying out the in-
dustries program under section 304(a); 
(D) $10,000,000 for carrying out dem-
onstration and commercial applications activi-
ties under section 305; and
(E) $7,000,000 for carrying out the sec-
ondary electric vehicle battery use program 
under section 306. 
SEC. 309. LIMITATION ON USE OF FUNDS. 
None of the funds authorized to be appropriated 
under this subtitle may be used for— 
(1) the issuance and implementation of energy 
efficiency regulations; 
(2) the Weatherization Assistance Program 
under part A of title IV of the Energy Conservation 
and Production Act (42 U.S.C. 6861 et seq.); 
(3) the State Energy Program under part D of 
title III of the Energy Policy and Conservation Act 
(42 U.S.C. 6321 et seq.); or 
(4) the Federal Energy Management Program 
under part 3 of title V of the National Energy Con-
servation Policy Act (42 U.S.C. 8251 et seq.). 
Subtitle B—Distributed Energy and 
Electric Energy Systems 
SEC. 321. DISTRIBUTED ENERGY. 
(a) IN GENERAL.—The Secretary shall conduct pro-
grams of distributed energy resources and systems reli-
ability and efficiency research, development, demonstra-
tion, and commercial application to improve the reliability 
and efficiency of distributed energy resources and systems,
including activities described in this subtitle. The pro-
grams shall address advanced energy technologies and sys-
tems and advanced grid reliability technologies. The pro-
grams shall include the integration of— 
(1) renewable energy resources; 
(2) fuel cells; 
(3) combined heat and power systems; 
(4) microturbines; 
(5) advanced natural gas turbines; 
(6) advanced internal combustion engine gen-
erators; 
(7) energy storage devices; 
(8) interconnection standards, protocols, and 
equipment; 
(9) ancillary equipment for dispatch and con-
trol; and 
(10) any other energy technologies, as appro-
priate. 
(b) 
MICRO-COGENERATION
ENERGY
TECH-
NOLOGY.—The Secretary shall make competitive, merit- 
based grants to consortia for the development of micro- 
cogeneration energy technology. The consortia shall ex-
plore— 
(1) the use of small-scale combined heat and 
power in residential heating appliances; or
(2) the use of excess power to operate other ap-
pliances within the residence and supply excess gen-
erated power to the power grid. 
(c) GOALS.— 
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for 
fiscal year 2007, a report containing outcome meas-
ures with explicitly stated cost and performance 
baselines. The measures shall specify performance 
goals, with quantifiable 5-year cost and energy sav-
ings target levels, for distributed energy resources 
and systems, and any other such goals the Secretary 
considers appropriate. 
(2) SUBSEQUENT
TRANSMITTALS.—The Sec-
retary shall transmit to the Congress, along with the 
President’s annual budget request for each fiscal 
year after 2007, a report containing— 
(A) a description, including quantitative 
analysis, of progress in achieving performance 
goals transmitted under paragraph (1), as com-
pared to the baselines transmitted under para-
graph (1); and
(B) any amendments to such goals. 
SEC. 322. ELECTRICITY TRANSMISSION AND DISTRIBUTION 
AND ENERGY ASSURANCE. 
(a) PROGRAM.—The Secretary shall conduct a re-
search, development, demonstration, and commercial ap-
plication program on advanced control devices to improve 
the energy efficiency and reliability of the electric trans-
mission and distribution systems and to protect the Na-
tion against severe energy supply disruptions. This pro-
gram shall address, at a minimum— 
(1) advanced energy delivery and storage tech-
nologies, materials, and systems, including new 
transmission technologies, such as flexible alter-
nating current transmission systems, composite con-
ductor materials, and other technologies that en-
hance reliability, operational flexibility, or power-car-
rying capability; 
(2) advanced grid reliability and efficiency tech-
nology development; 
(3) technologies contributing to significant load 
reductions; 
(4) advanced metering, load management, and 
control technologies; 
(5) technologies to enhance existing grid compo-
nents;
(6) the development and use of high-tempera-
ture superconductors to— 
(A) enhance the reliability, operational 
flexibility, or power-carrying capability of elec-
tric transmission or distribution systems; or 
(B) increase the efficiency of electric en-
ergy generation, transmission, distribution, or 
storage systems; 
(7) integration of power systems, including sys-
tems to deliver high-quality electric power, electric 
power reliability, and combined heat and power; 
(8) supply of electricity to the power grid by 
small-scale, distributed, and residential-based power 
generators; 
(9) the development and use of advanced grid 
design, operation, and planning tools; 
(10) any other infrastructure technologies, as 
appropriate; and 
(11) technology transfer and education. 
(b) GOALS.— 
(1) INITIAL
GOALS.—In accordance with the 
performance plan and report requirements in section 
4 of the Government Performance Results Act of 
1993, the Secretary shall transmit to the Congress, 
along with the President’s annual budget request for