133
ment or willfully to enter or cause to be entered
for such other person any false record;
‘‘(C) willfully to deceive or attempt to de-
ceive such other person by any means whatso-
ever in regard to any order or contract or the
disposition or execution of any order or con-
tract, or in regard to any act of agency per-
formed, with respect to any order or contract
for or, in the case of subsection (a)(2), with
such other person; or
‘‘(D)(i) to bucket an order if such order is
either represented by such person as an order
to be executed, or required to be executed, on
or subject to the rules of a designated contract
market; or
‘‘(ii) to fill an order by offset against the
order or orders of any other person, or willfully
and knowingly and without the prior consent of
such other person to become the buyer in re-
spect to any selling order of such other person,
or become the seller in respect to any buying
order of such other person, if such order is ei-
ther represented by such person as an order to
be executed, or required to be executed, on or
134
subject to the rules of a designated contract
market.
‘‘(b) Subsection (a)(2) shall not obligate any person,
in connection with a transaction in a contract of sale of
a commodity for future delivery, or other agreement, con-
tract or transaction subject to section 5a(g) (1) and (2)
of this Act, with another person, to disclose to such other
person nonpublic information that may be material to the
market price of such commodity or transaction, except as
necessary to make any statement made to such other per-
son in connection with such transaction, not misleading
in any material respect.’’.
(c) JURISDICTION OF THE CFTC.—The Natural Gas
Act (15 U.S.C. 717 et seq.) is amended by adding at the
end:
‘‘SEC. 26. JURISDICTION.
‘‘This Act shall not affect the exclusive jurisdiction
of the Commodity Futures Trading Commission with re-
spect to accounts, agreements, contracts, or transactions
in commodities under the Commodity Exchange Act (7
U.S.C. 1 et seq.). Any request for information by the Com-
mission to a designated contract market, registered deriva-
tives transaction execution facility, board of trade, ex-
change, or market involving accounts, agreements, con-
tracts, or transactions in commodities (including natural
135
gas, electricity, and other energy commodities) within the
exclusive jurisdiction of the Commodity Futures Trading
Commission shall be directed to the Commodity Futures
Trading Commission, which shall cooperate in responding
to any information request by the Commission.’’.
(d) INCREASED PENALTIES.—Section 21 of the Nat-
ural Gas Act (15 U.S.C. 717t) is amended—
(1) in subsection (a)—
(A) by striking ‘‘$5,000’’ and inserting
‘‘$1,000,000’’; and
(B) by striking ‘‘two years’’ and inserting
‘‘5 years’’; and
(2) in subsection (b), by striking ‘‘$500’’ and
inserting ‘‘$50,000’’.
SEC. 333. NATURAL GAS MARKET TRANSPARENCY.
The Natural Gas Act (15 U.S.C 717 et seq.) is
amended—
(1) by redesignating section 24 as section 25;
and
(2) by inserting after section 23 the following:
‘‘SEC. 24. NATURAL GAS MARKET TRANSPARENCY.
‘‘(a) AUTHORIZATION.—(1) Not later than 180 days
after the date of enactment of the Energy Policy Act of
2005, the Federal Energy Regulatory Commission shall
issue rules directing all entities subject to the Commis-
136
sion’s jurisdiction as provided under this Act to timely re-
port information about the availability and prices of nat-
ural gas sold at wholesale in interstate commerce to the
Commission and price publishers.
‘‘(2) The Commission shall evaluate the data for ade-
quate price transparency and accuracy.
‘‘(3) Rules issued under this subsection requiring the
reporting of information to the Commission that may be-
come publicly available shall be limited to aggregate data
and transaction-specific data that are otherwise required
by the Commission to be made public.
‘‘(4) In exercising its authority under this section, the
Commission shall not—
‘‘(A) compete with, or displace from the market
place, any price publisher; or
‘‘(B) regulate price publishers or impose any re-
quirements on the publication of information.
‘‘(b) TIMELY ENFORCEMENT.—No person shall be
subject to any penalty under this section with respect to
a violation occurring more than 3 years before the date
on which the Federal Energy Regulatory Commission
seeks to assess a penalty.
‘‘(c) LIMITATION ON COMMISSION AUTHORITY.—(1)
The Commission shall not condition access to interstate
137
pipeline transportation upon the reporting requirements
authorized under this section.
‘‘(2) Natural gas sales by a producer that are attrib-
utable to volumes of natural gas produced by such pro-
ducer shall not be subject to the rules issued pursuant to
this section.
‘‘(3) The Commission shall not require natural gas
producers, processors, or users who have a de minimis
market presence to participate in the reporting require-
ments provided in this section.’’.
SEC. 334. OIL, GAS, AND MINERAL INDUSTRY WORKERS.
Congress recognizes that a critical component in
meeting expanded domestic oil and gas supplies is the
availability of adequate numbers of trained and skilled
workers who can undertake the difficult, complex, and
often hazardous tasks to bring new supplies into produc-
tion. Years of volatility in oil and gas prices, and uncer-
tainty over Federal policy on access to resources, has cre-
ated a severe shortage of skilled workers for the oil and
gas industry. To address this shortage, the Secretary of
Energy, in consultation with the Secretary of Labor, shall
evaluate both the short term and longer term availability
of skilled workers to meet the energy security require-
ments of the United States, addressing the availability
of skilled labor at both entry level and at more senior lev-
138
els in the oil, gas, and mineral industries. Within twelve
months of the date of enactment of this Act, the Secretary
of Energy, the Secretary of Labor, and the Secretary of
the Interior shall submit to Congress a report with rec-
ommendations as appropriate to meet the future labor re-
quirements for the domestic extraction industries.
Subtitle C—Access to Federal Land
SEC. 344. CONSULTATION REGARDING OIL AND GAS LEAS-
ING ON PUBLIC LAND.
(a) IN GENERAL.—Not later than 180 days after the
date of enactment of this Act, the Secretary of the Interior
and the Secretary of Agriculture shall enter into a memo-
randum of understanding regarding oil and gas leasing
on—
(1) public lands under the jurisdiction of the
Secretary of the Interior; and
(2) National Forest System lands under the ju-
risdiction of the Secretary of Agriculture.
(b) CONTENTS.—The memorandum of understanding
shall include provisions that—
(1) establish administrative procedures and
lines of authority that ensure timely processing of oil
and gas lease applications, surface use plans of oper-
ation, and applications for permits to drill, including
steps for processing surface use plans and applica-
139
tions for permits to drill consistent with the
timelines established by the amendment made by
section 348;
(2) eliminate duplication of effort by providing
for coordination of planning and environmental com-
pliance efforts; and
(3) ensure that lease stipulations are—
(A) applied consistently;
(B) coordinated between agencies; and
(C) only as restrictive as necessary to pro-
tect the resource for which the stipulations are
applied.
(c) DATA RETRIEVAL SYSTEM.—
(1) IN GENERAL.—Not later than 1 year after
the date of enactment of this Act, the Secretary of
the Interior and the Secretary of Agriculture shall
establish a joint data retrieval system that is capable
of—
(A) tracking applications and formal re-
quests made in accordance with procedures of
the Federal onshore oil and gas leasing pro-
gram; and
(B) providing information regarding the
status of the applications and requests within
140
the Department of the Interior and the Depart-
ment of Agriculture.
(2) RESOURCE
MAPPING.—Not later than 2
years after the date of enactment of this Act, the
Secretary of the Interior and the Secretary of Agri-
culture shall establish a joint Geographic Informa-
tion System mapping system for use in—
(A) tracking surface resource values to aid
in resource management; and
(B) processing surface use plans of oper-
ation and applications for permits to drill.
SEC. 346. COMPLIANCE WITH EXECUTIVE ORDER NO. 13211;
ACTIONS CONCERNING REGULATIONS THAT
SIGNIFICANTLY AFFECT ENERGY SUPPLY,
DISTRIBUTION, OR USE.
(a) REQUIREMENT.—The head of each Federal agen-
cy shall require that before the Federal agency takes any
action that could have a significant adverse effect on the
supply of domestic energy resources from Federal public
land, the Federal agency taking the action shall comply
with Executive Order No. 13211 (42 U.S.C. 13201 note).
(b) GUIDANCE.—Not later than 180 days after the
date of enactment of this Act, the Secretary of Energy
shall publish guidance for purposes of this section describ-
ing what constitutes a significant adverse effect on the
141
supply of domestic energy resources under Executive
Order No. 13211 (42 U.S.C. 13201 note).
(c) MEMORANDUM OF UNDERSTANDING.—The Sec-
retary of the Interior and the Secretary of Agriculture
shall include in the memorandum of understanding under
section 344 provisions for implementing subsection (a) of
this section.
SEC. 355. ENCOURAGING GREAT LAKES OIL AND GAS
DRILLING BAN.
Congress encourages no Federal or State permit or
lease to be issued for new oil and gas slant, directional,
or offshore drilling in or under one or more of the Great
Lakes.
SEC. 358. FEDERAL COALBED METHANE REGULATION.
Any State currently on the list of Affected States es-
tablished under section 1339(b) of the Energy Policy Act
of 1992 (42 U.S.C. 13368(b)) shall be removed from the
list if, not later than 3 years after the date of enactment
of this Act, the State takes, or prior to the date of enact-
ment has taken, any of the actions required for removal
from the list under such section 1339(b).
Subtitle D—Refining Revitalization
SEC. 371. SHORT TITLE.
This subtitle may be cited as the ‘‘United States Re-
finery Revitalization Act of 2005’’.
142
SEC. 372. FINDINGS.
Congress finds the following:
(1) It serves the national interest to increase
petroleum refining capacity for gasoline, heating oil,
diesel fuel, jet fuel, kerosene, and petrochemical
feedstocks wherever located within the United
States, to bring more supply to the markets for use
by the American people. Nearly 50 percent of the
petroleum in the United States is used for the pro-
duction of gasoline. Refined petroleum products have
a significant impact on interstate commerce.
(2) United States demand for refined petroleum
products currently exceeds the country’s petroleum
refining capacity to produce such products. By
2025, United States gasoline consumption is pro-
jected to rise from 8,900,000 barrels per day to
12,900,000 barrels per day. Diesel fuel and home
heating oil are becoming larger components of an in-
creasing demand for refined petroleum supply. With
the increase in air travel, jet fuel consumption is
projected to be 789,000 barrels per day higher in
2025 than today.
(3) The petroleum refining industry is oper-
ating at 95 percent of capacity. The United States
is currently importing 5 percent of its refined petro-
leum products and because of the stringent United
143
States gasoline and diesel fuel specifications, few
foreign refiners can produce the clean fuels required
in the United States and the number of foreign sup-
pliers that can produce United States quality gaso-
line is decreasing.
(4) Refiners are subject to significant environ-
mental and other regulations and face several new
Clean Air Act requirements over the next decade.
New Clean Air Act requirements will benefit the en-
vironment but will also require substantial capital
investment and additional government permits.
(5) No new refinery has been built in the
United States since 1976 and many smaller domes-
tic refineries have become idle since the removal of
the Domestic Crude Oil Allocation Program and be-
cause of regulatory uncertainty and generally low re-
turns on capital employed. Today, the United States
has 149 refineries, down from 324 in 1981. Restora-
tion of recently idled refineries alone would amount
to 483,570 barrels a day in additional capacity, or
approximately 3.3 percent of the total operating ca-
pacity.
(6) Refiners have met growing demand by in-
creasing the use of existing equipment and increas-
ing the efficiency and capacity of existing plants.
144
But refining capacity has begun to lag behind peak
summer demand.
(7) Heavy industry and manufacturing jobs
have closed or relocated due to barriers to invest-
ment, burdensome regulation, and high costs of op-
eration, among other reasons.
(8) Because the production and disruption in
supply of refined petroleum products has a signifi-
cant impact on interstate commerce, it serves the
national interest to increase the domestic refining
operating capacity.
(10) More regulatory certainty for refinery own-
ers is needed to stimulate investment in increased
refinery capacity and required procedures for Fed-
eral, State, and local regulatory approvals need to be
streamlined to ensure that increased refinery capac-
ity can be developed and operated in a safe, timely,
and cost-effective manner.
(11) The proposed Yuma Arizona Refinery, a
grassroots refinery facility, which only recently re-
ceived its Federal air quality permit after 5 years
under the current regulatory process, and is just
now beginning its environmental impact statement
and local permitting process, serves as an example
145
of the obstacles a refiner would have to overcome to
reopen an idle refinery.
SEC. 373. PURPOSE.
The purpose of this subtitle is to encourage the ex-
pansion of the United States refining capacity by pro-
viding an accelerated review and approval process of all
regulatory approvals for certain idle refineries and lending
corresponding legal and technical assistance to States with
resources that may be inadequate to meet such permit re-
view demands.
SEC. 374. DESIGNATION OF REFINERY REVITALIZATION
ZONES.
Not later than 90 days after the date of enactment
of this Act, the Secretary shall designate as a Refinery
Revitalization Zone any area—
(1) that—
(A) has experienced mass layoffs at manu-
facturing facilities, as determined by the Sec-
retary of Labor; or
(B) contains an idle refinery; and
(2) that has an unemployment rate that exceeds
the national average by at least 10 percent of the
national average, as set by the Department of
Labor, Bureau of Labor Statistics, at the time of
the designation as a Refinery Revitalization Zone.
146
SEC. 375. MEMORANDUM OF UNDERSTANDING.
(a) IN GENERAL.—Not later than 90 days after the
date of enactment of this Act, the Secretary shall enter
into a memorandum of understanding with the Adminis-
trator for the purposes of this subtitle. The Secretary and
the Administrator shall each designate a senior official re-
sponsible for, and dedicate sufficient other staff and re-
sources to ensure, full implementation of the purposes of
this subtitle and any regulations enacted pursuant to this
subtitle.
(b) ADDITIONAL SIGNATORIES.—The Governor of
any State, and the appropriate representative of any In-
dian Tribe, with jurisdiction over a Refinery Revitalization
Zone, as designated by the Secretary pursuant to section
374, may be signatories to the memorandum of under-
standing under this section.
SEC. 376. STATE ENVIRONMENTAL PERMITTING ASSIST-
ANCE.
Not later than 30 days after a Revitalization Pro-
gram Qualifying State becomes a signatory to the memo-
randum of understanding under section 375(b)—
(1) the Secretary shall designate one or more
employees of the Department with expertise relating
to the siting and operation of refineries to provide
legal and technical assistance to that Revitalization
Program Qualifying State; and
147
(2) the Administrator shall designate, to pro-
vide legal and technical assistance for that Revital-
ization Program Qualifying State, one or more em-
ployees of the Environmental Protection Agency
with expertise on regulatory issues, relating to the
siting and operation of refineries, with respect to
each of—
(A) the Clean Air Act (42 U.S.C. 7401 et
seq.);
(B) the Federal Water Pollution Control
Act (33 U.S.C. 1251 et seq.);
(C) the Safe Drinking Water Act (42
U.S.C. 300f et seq.);
(D) the Comprehensive Environmental Re-
sponse, Compensation, and Liability Act of
1980 (42 U.S.C. 9601 et seq.);
(E) the Solid Waste Disposal Act (42
U.S.C. 6901 et seq.);
(F) the Toxic Substances Control Act (15
U.S.C. 2601 et seq.);
(G) the National Historic Preservation Act
(16 U.S.C. 470 et seq.); and
(H) the National Environmental Policy Act
of 1969 (42 U.S.C. 4321 et seq.).
148
SEC. 377. COORDINATION AND EXPEDITIOUS REVIEW OF
PERMITTING PROCESS.
(a) DEPARTMENT OF ENERGY AS LEAD AGENCY.—
Upon written request of a prospective applicant for Fed-
eral authorization for a refinery facility in a Refinery Revi-
talization Zone, the Department shall act as the lead Fed-
eral agency for the purposes of coordinating all applicable
Federal authorizations and environmental reviews of the
refining facility. To the maximum extent practicable under
applicable Federal law, the Secretary shall coordinate this
Federal authorization and review process with any Indian
Tribes and State and local agencies responsible for con-
ducting any separate permitting and environmental re-
views of the refining facility.
(b) SCHEDULE.—
(1) IN GENERAL.—The Secretary, in coordina-
tion with the agencies with authority over Federal
authorizations and, as appropriate, with Indian
Tribes and State and local agencies that are willing
to coordinate their separate permitting and environ-
mental reviews with the Federal authorizations and
environmental reviews, shall establish a schedule
with prompt and binding intermediate and ultimate
deadlines for the review of, and Federal authoriza-
tion decisions relating to, refinery facility siting and
operation.
149
(2) PREAPPLICATION PROCESS.—Prior to estab-
lishing the schedule, the Secretary shall provide an
expeditious preapplication mechanism for applicants
to confer with the agencies involved and to have
each agency communicate to the prospective appli-
cant within 60 days concerning—
(A) the likelihood of approval for a poten-
tial refinery facility; and
(B) key issues of concern to the agencies
and local community.
(3) SCHEDULE.—The Secretary shall consider
the preapplication findings under paragraph (2) in
setting the schedule and shall ensure that once an
application has been submitted with such informa-
tion as the Secretary considers necessary, all permit
decisions and related environmental reviews under
all applicable Federal laws shall be completed within
6 months or, where circumstances require otherwise,
as soon as thereafter practicable.
(c) CONSOLIDATED ENVIRONMENTAL REVIEW.—
(1) LEAD AGENCY.—In carrying out its role as
the lead Federal agency for environmental review,
the Department shall coordinate all applicable Fed-
eral actions for complying with the National Envi-
ronmental Policy Act of 1969 (42 U.S.C. 4321 et
150
seq.) and shall be responsible for preparing any envi-
ronmental impact statement required by section
102(2)(C) of that Act (42 U.S.C. 4332(2)(C)) or
such other form of environmental review as is re-
quired.
(2) CONSOLIDATION OF STATEMENTS.—In car-
rying out paragraph (1), if the Department deter-
mines an environmental impact statement is re-
quired, the Department shall prepare a single envi-
ronmental impact statement, which shall consolidate
the environmental reviews of all Federal agencies
considering any aspect of the project covered by the
environmental impact statement.
(d) OTHER AGENCIES.—Each Federal agency consid-
ering an aspect of the siting or operation of a refinery
facility in a Refinery Revitalization Zone shall cooperate
with the Department and comply with the deadlines estab-
lished by the Department in the preparation of any envi-
ronmental impact statement or such other form of review
as is required.
(e) EXCLUSIVE RECORD.—The Department shall,
with the cooperation of Federal and State administrative
agencies and officials, maintain a complete consolidated
record of all decisions made or actions taken by the De-
partment or by a Federal administrative agency or officer
151
(or State administrative agency or officer acting under
delegated Federal authority) with respect to the siting or
operation of a refinery facility in a Refinery Revitalization
Zone. Such record shall be the exclusive record for any
Federal administrative proceeding that is an appeal or re-
view of any such decision made or action taken.
(f) APPEALS.—In the event any agency has denied
a Federal authorization required for a refinery facility in
a Refinery Revitalization Zone, or has failed to act by a
deadline established by the Secretary pursuant to sub-
section (b) for deciding whether to issue the Federal au-
thorization, the applicant or any State in which the refin-
ery facility would be located may file an appeal with the
Secretary. Based on the record maintained under sub-
section (e), and in consultation with the affected agency,
the Secretary may then either issue the necessary Federal
authorization with appropriate conditions, or deny the ap-
peal. The Secretary shall issue a decision within 60 days
after the filing of the appeal. In making a decision under
this subsection, the Secretary shall comply with applicable
requirements of Federal law, including each of the laws
referred to in section 376(2)(A) through (H). Any judicial
appeal of the Secretary’s decision shall be to the United
States Court of Appeals for the District of Columbia.
152
(g) CONFORMING REGULATIONS.—Not later than 6
months after the date of enactment of this Act, the Sec-
retary shall issue any regulations necessary to implement
this subtitle.
SEC. 378. COMPLIANCE WITH ALL ENVIRONMENTAL REGU-
LATIONS REQUIRED.
Nothing in this subtitle shall be construed to waive
the applicability of environmental laws and regulations to
any refinery facility.
SEC. 379. DEFINITIONS.
For the purposes of this subtitle, the term—
(1) ‘‘Administrator’’ means the Administrator
of the Environmental Protection Agency;
(2) ‘‘Department’’ means the Department of
Energy;
(3) ‘‘Federal authorization’’ means any author-
ization required under Federal law (including the
Clean Air Act, the Federal Water Pollution Control
Act, the Safe Drinking Water Act, the Comprehen-
sive Environmental Response, Compensation, and
Liability Act of 1980, the Solid Waste Disposal Act,
the Toxic Substances Control Act, the National His-
toric Preservation Act, and the National Environ-
mental Policy Act of 1969) in order to site, con-
struct, upgrade, or operate a refinery facility within
153
a Refinery Revitalization Zone, including such per-
mits, special use authorizations, certifications, opin-
ions, or other approvals as may be required, whether
issued by a Federal, State, or local agency;
(4) ‘‘idle refinery’’ means any real property site
that has been used at any time for a refinery facility
since December 31, 1979, that has not been in oper-
ation after April 1, 2005;
(5) ‘‘refinery facility’’ means any facility de-
signed and operated to receive, unload, store, proc-
ess and refine raw crude oil by any chemical or
physical process, including distillation, fluid catalytic
cracking, 
hydrocracking, 
coking, 
alkylation,
etherification, polymerization, catalytic reforming,
isomerization, hydrotreating, blending, and any com-
bination thereof;
(6) ‘‘Revitalization Program Qualifying State’’
means a State or Indian Tribe that—
(A) has entered into the memorandum of
understanding pursuant to section 375(b); and
(B) has established a refining infrastruc-
ture coordination office that the Secretary finds
will facilitate Federal-State cooperation for the
purposes of this subtitle; and
(7) ‘‘Secretary’’ means the Secretary of Energy.
154
TITLE IV—COAL
Subtitle A—Clean Coal Power
Initiative
SEC. 401. AUTHORIZATION OF APPROPRIATIONS.
(a) CLEAN COAL POWER INITIATIVE.—There are au-
thorized to be appropriated to the Secretary of Energy (re-
ferred to in this title as the ‘‘Secretary’’) to carry out the
activities authorized by this subtitle $200,000,000 for
each of fiscal years 2006 through 2014, to remain avail-
able until expended.
(b) REPORT.—The Secretary shall submit to Con-
gress the report required by this subsection not later than
March 31, 2007. The report shall include, with respect
to subsection (a), a 10-year plan containing—
(1) a detailed assessment of whether the aggre-
gate funding levels provided under subsection (a) are
the appropriate funding levels for that program;
(2) a detailed description of how proposals will
be solicited and evaluated, including a list of all ac-
tivities expected to be undertaken;
(3) a detailed list of technical milestones for
each coal and related technology that will be pur-
sued; and
(4) a detailed description of how the program
will avoid problems enumerated in General Account-
155
ing Office reports on the Clean Coal Technology
Program, including problems that have resulted in
unspent funds and projects that failed either finan-
cially or scientifically.
SEC. 402. PROJECT CRITERIA.
(a) IN GENERAL.—The Secretary shall not provide
funding under this subtitle for any project that does not
advance efficiency, environmental performance, and cost
competitiveness well beyond the level of technologies that
are in commercial service or have been demonstrated on
a scale that the Secretary determines is sufficient to dem-
onstrate that commercial service is viable as of the date
of enactment of this Act.
(b) TECHNICAL CRITERIA FOR CLEAN COAL POWER
INITIATIVE.—
(1) GASIFICATION PROJECTS.—
(A) IN GENERAL.—In allocating the funds
made available under section 401(a), the Sec-
retary shall ensure that at least 60 percent of
the funds are used only for projects on coal-
based gasification technologies, including gasifi-
cation combined cycle, gasification fuel cells,
gasification coproduction, and hybrid gasifi-
cation/combustion.
156
(B) TECHNICAL
MILESTONES.—The Sec-
retary shall periodically set technical milestones
specifying the emission and thermal efficiency
levels that coal gasification projects under this
subtitle shall be designed, and reasonably ex-
pected, to achieve. The technical milestones
shall become more restrictive during the life of
the program. The Secretary shall set the peri-
odic milestones so as to achieve by 2020 coal
gasification projects able—
(i) to remove 99 percent of sulfur di-
oxide;
(ii) to emit not more than .05 lbs of
NOx per million Btu;
(iii) to achieve substantial reductions
in mercury emissions; and
(iv) to achieve a thermal efficiency
of—
(I) 60 percent for coal of more
than 9,000 Btu;
(II) 59 percent for coal of 7,000
to 9,000 Btu; and
(III) 50 percent for coal of less
than 7,000 Btu.
157
(2) OTHER PROJECTS.—The Secretary shall pe-
riodically set technical milestones and ensure that up
to 40 percent of the funds appropriated pursuant to
section 401(a) are used for projects not described in
paragraph (1). The milestones shall specify the
emission and thermal efficiency levels that projects
funded under this paragraph shall be designed to
and reasonably expected to achieve. The technical
milestones shall become more restrictive during the
life of the program. The Secretary shall set the peri-
odic milestones so as to achieve by 2010 projects
able—
(A) to remove 97 percent of sulfur dioxide;
(B) to emit no more than .08 lbs of NOx
per million Btu;
(C) to achieve substantial reductions in
mercury emissions; and
(D) to achieve a thermal efficiency of—
(i) 45 percent for coal of more than
9,000 Btu;
(ii) 44 percent for coal of 7,000 to
9,000 Btu; and
(iii) 40 percent for coal of less than
7,000 Btu.
158
(3) CONSULTATION.—Before setting the tech-
nical milestones under paragraphs (1)(B) and (2),
the Secretary shall consult with the Administrator of
the Environmental Protection Agency and interested
entities, including coal producers, industries using
coal, organizations to promote coal or advanced coal
technologies, environmental organizations, and orga-
nizations representing workers.
(4) EXISTING UNITS.—In the case of projects
at units in existence on the date of enactment of this
Act, in lieu of the thermal efficiency requirements
set forth in paragraph (1)(B)(iv) and (2)(D), the
milestones shall be designed to achieve an overall
thermal design efficiency improvement, compared to
the efficiency of the unit as operated, of not less
than—
(A) 7 percent for coal of more than 9,000
Btu;
(B) 6 percent for coal of 7,000 to 9,000
Btu; or
(C) 4 percent for coal of less than 7,000
Btu.
(5) PERMITTED
USES.—In carrying out this
subtitle, the Secretary may fund projects that in-
clude, as part of the project, the separation and cap-
159
ture of carbon dioxide. The thermal efficiency goals
of paragraphs (1), (2), and (4) shall not apply for
projects that separate and capture at least 50 per-
cent of the facility’s potential emissions of carbon di-
oxide.
(c) FINANCIAL CRITERIA.—The Secretary shall not
provide a funding award under this subtitle unless the re-
cipient documents to the satisfaction of the Secretary
that—
(1) the award recipient is financially viable
without the receipt of additional Federal funding;
(2) the recipient will provide sufficient informa-
tion to the Secretary to enable the Secretary to en-
sure that the award funds are spent efficiently and
effectively; and
(3) a market exists for the technology being
demonstrated or applied, as evidenced by statements
of interest in writing from potential purchasers of
the technology.
(d) FINANCIAL ASSISTANCE.—The Secretary shall
provide financial assistance to projects that meet the re-
quirements of subsections (a), (b), and (c) and are likely
to—
(1) achieve overall cost reductions in the utiliza-
tion of coal to generate useful forms of energy;
160
(2) improve the competitiveness of coal among
various forms of energy in order to maintain a diver-
sity of fuel choices in the United States to meet elec-
tricity generation requirements; and
(3) demonstrate methods and equipment that
are applicable to 25 percent of the electricity gener-
ating facilities, using various types of coal, that use
coal as the primary feedstock as of the date of en-
actment of this Act.
(e) FEDERAL SHARE.—The Federal share of the cost
of a coal or related technology project funded by the Sec-
retary under this subtitle shall not exceed 50 percent.
(f) APPLICABILITY.—No technology, or level of emis-
sion reduction, shall be treated as adequately dem-
onstrated for purposes of section 111 of the Clean Air Act
(42 U.S.C. 7411), achievable for purposes of section 169
of that Act (42 U.S.C. 7479), or achievable in practice
for purposes of section 171 of that Act (42 U.S.C. 7501)
solely by reason of the use of such technology, or the
achievement of such emission reduction, by 1 or more fa-
cilities receiving assistance under this subtitle.
SEC. 403. REPORT.
Not later than 1 year after the date of enactment
of this Act, and once every 2 years thereafter through
2014, the Secretary, in consultation with other appro-
161
priate Federal agencies, shall submit to Congress a report
describing—
(1) the technical milestones set forth in section
402 and how those milestones ensure progress to-
ward meeting the requirements of subsections
(b)(1)(B) and (b)(2) of section 402; and
(2) the status of projects funded under this
subtitle.
SEC. 404. CLEAN COAL CENTERS OF EXCELLENCE.
As part of the program authorized in section 401,
the Secretary shall award competitive, merit-based grants
to universities for the establishment of Centers of Excel-
lence for Energy Systems of the Future. The Secretary
shall provide grants to universities that show the greatest
potential for advancing new clean coal technologies.
Subtitle B—Clean Power Projects
SEC. 411. COAL TECHNOLOGY LOAN.
There are authorized to be appropriated to the Sec-
retary $125,000,000 to provide a loan to the owner of the
experimental plant constructed under United States De-
partment of Energy cooperative agreement number DE-
FC-22–91PC90544 on such terms and conditions as the
Secretary determines, including interest rates and upfront
payments.
162
SEC. 412. COAL GASIFICATION.
The Secretary is authorized to provide loan guaran-
tees for a project to produce energy from a plant using
integrated gasification combined cycle technology of at
least 400 megawatts in capacity that produces power at
competitive rates in deregulated energy generation mar-
kets and that does not receive any subsidy (direct or indi-
rect) from ratepayers.
SEC. 414. PETROLEUM COKE GASIFICATION.
The Secretary is authorized to provide loan guaran-
tees for at least 5 petroleum coke gasification projects.
SEC. 416. ELECTRON SCRUBBING DEMONSTRATION.
The Secretary shall use $5,000,000 from amounts
appropriated to initiate, through the Chicago Operations
Office, a project to demonstrate the viability of high-en-
ergy electron scrubbing technology on commercial-scale
electrical generation using high-sulfur coal.
Subtitle D—Coal and Related
Programs
SEC. 441. CLEAN AIR COAL PROGRAM.
(a) AMENDMENT.—The Energy Policy Act of 1992
is amended by adding the following new title at the end
thereof:
163
‘‘TITLE XXXI—CLEAN AIR COAL
PROGRAM
‘‘SEC. 3101. FINDINGS; PURPOSES; DEFINITIONS.
‘‘(a) FINDINGS.—The Congress finds that—
‘‘(1) new environmental regulations present ad-
ditional challenges for coal-fired electrical generation
in the private marketplace; and
‘‘(2) the Department of Energy, in cooperation
with industry, has already fully developed and com-
mercialized several new clean-coal technologies that
will allow the clean use of coal.
‘‘(b) PURPOSES.—The purposes of this title are to—
‘‘(1) promote national energy policy and energy
security, diversity, and economic competitiveness
benefits that result from the increased use of coal;
‘‘(2) mitigate financial risks, reduce the cost,
and increase the marketplace acceptance of the new
clean coal technologies; and
‘‘(3) advance the deployment of pollution con-
trol equipment to meet the current and future obli-
gations of coal-fired generation units regulated
under the Clean Air Act (42 U.S.C. 7402 and fol-
lowing).
164
‘‘SEC. 3102. AUTHORIZATION OF PROGRAM.
‘‘The Secretary shall carry out a program to facilitate
production and generation of coal-based power and the in-
stallation of pollution control equipment.
‘‘SEC. 3103. AUTHORIZATION OF APPROPRIATIONS.
‘‘(a) POLLUTION CONTROL PROJECTS.—There are
authorized 
to 
be 
appropriated 
to 
the 
Secretary
$300,000,000 for fiscal year 2006, $100,000,000 for fis-
cal year 2007, $40,000,000 for fiscal year 2008,
$30,000,000 for fiscal year 2009, and $30,000,000 for fis-
cal year 2010, to remain available until expended, for car-
rying out the program for pollution control projects, which
may include—
‘‘(1) pollution control equipment and processes
for the control of mercury air emissions;
‘‘(2) pollution control equipment and processes
for the control of nitrogen dioxide air emissions or
sulfur dioxide emissions;
‘‘(3) pollution control equipment and processes
for the mitigation or collection of more than one pol-
lutant;
‘‘(4) advanced combustion technology for the
control of at least two pollutants, including mercury,
particulate matter, nitrogen oxides, and sulfur diox-
ide, which may also be designed to improve the en-
ergy efficiency of the unit; and
165
‘‘(5) advanced pollution control equipment and
processes designed to allow use of the waste byprod-
ucts or other byproducts of the equipment or an
electrical generation unit designed to allow the use
of byproducts.
Funds appropriated under this subsection which are not
awarded before fiscal year 2012 may be applied to projects
under subsection (b), in addition to amounts authorized
under subsection (b).
‘‘(b) GENERATION PROJECTS.—There are authorized
to be appropriated to the Secretary $250,000,000 for fis-
cal year 2007, $350,000,000 for fiscal year 2008,
$400,000,000 for fiscal year 2009, $400,000,000 for fis-
cal year 2010, $400,000,000 for fiscal year 2011,
$400,000,000 for fiscal year 2012, and $300,000,000 for
fiscal year 2013, to remain available until expended, for
generation projects and air pollution control projects.
Such projects may include—
‘‘(1) coal-based electrical generation equipment
and processes, including gasification combined cycle
or other coal-based generation equipment and proc-
esses;
‘‘(2) associated environmental control equip-
ment, that will be cost-effective and that is designed
to meet anticipated regulatory requirements;
166
‘‘(3) coal-based electrical generation equipment
and processes, including gasification fuel cells, gas-
ification coproduction, and hybrid gasification/com-
bustion projects; and
‘‘(4) advanced coal-based electrical generation
equipment and processes, including oxidation com-
bustion techniques, ultra-supercritical boilers, and
chemical looping, which the Secretary determines
will be cost-effective and could substantially con-
tribute to meeting anticipated environmental or en-
ergy needs.
‘‘(c) LIMITATION.—Funds placed at risk during any
fiscal year for Federal loans or loan guarantees pursuant
to this title may not exceed 30 percent of the total funds
obligated under this title.
‘‘SEC. 3104. AIR POLLUTION CONTROL PROJECT CRITERIA.
‘‘The Secretary shall pursuant to authorizations con-
tained in section 3103 provide funding for air pollution
control projects designed to facilitate compliance with
Federal and State environmental regulations, including
any regulation that may be established with respect to
mercury.
‘‘SEC. 3105. CRITERIA FOR GENERATION PROJECTS.
‘‘(a) CRITERIA.—The Secretary shall establish cri-
teria on which selection of individual projects described in
167
section 3103(b) should be based. The Secretary may mod-
ify the criteria as appropriate to reflect improvements in
equipment, except that the criteria shall not be modified
to be less stringent. These selection criteria shall include—
‘‘(1) prioritization of projects whose installation
is likely to result in significant air quality improve-
ments in nonattainment air quality areas;
‘‘(2) prioritization of projects that result in the
repowering or replacement of older, less efficient
units;
‘‘(3) documented broad interest in the procure-
ment of the equipment and utilization of the proc-
esses used in the projects by electrical generator
owners or operators;
‘‘(4) equipment and processes beginning in
2006 through 2011 that are projected to achieve an
thermal efficiency of—
‘‘(A) 40 percent for coal of more than
9,000 Btu per pound based on higher heating
values;
‘‘(B) 38 percent for coal of 7,000 to 9,000
Btu per pound based on higher heating values;
and
‘‘(C) 36 percent for coal of less than 7,000
Btu per pound based on higher heating values,
168
except that energy used for coproduction or cogen-
eration shall not be counted in calculating the ther-
mal efficiency under this paragraph; and
‘‘(5) equipment and processes beginning in
2012 and 2013 that are projected to achieve an
thermal efficiency of—
‘‘(A) 45 percent for coal of more than
9,000 Btu per pound based on higher heating
values;
‘‘(B) 44 percent for coal of 7,000 to 9,000
Btu per pound based on higher heating values;
and
‘‘(C) 40 percent for coal of less than 7,000
Btu per pound based on higher heating values,
except that energy used for coproduction or cogen-
eration shall not be counted in calculating the ther-
mal efficiency under this paragraph.
‘‘(b) SELECTION.—(1) In selecting the projects, up
to 25 percent of the projects selected may be either co-
production or cogeneration or other gasification projects,
but at least 25 percent of the projects shall be for the
sole purpose of electrical generation, and priority should
be given to equipment and projects less than or equal to
600 MW to foster and promote standard designs.
169
‘‘(2) The Secretary shall give priority to projects that
have been developed and demonstrated that are not yet
cost competitive, and for coal energy generation projects
that advance efficiency, environmental performance, or
cost competitiveness significantly beyond the level of pollu-
tion control equipment that is in operation on a full scale.
‘‘SEC. 3106. FINANCIAL CRITERIA.
‘‘(a) IN GENERAL.—The Secretary shall only provide
financial assistance to projects that meet the requirements
of sections 3103 and 3104 and are likely to—
‘‘(1) achieve overall cost reductions in the utili-
zation of coal to generate useful forms of energy;
and
‘‘(2) improve the competitiveness of coal in
order to maintain a diversity of domestic fuel choices
in the United States to meet electricity generation
requirements.
‘‘(b) CONDITIONS.—The Secretary shall not provide
a funding award under this title unless—
‘‘(1) the award recipient is financially viable
without the receipt of additional Federal funding;
and
‘‘(2) the recipient provides sufficient informa-
tion to the Secretary for the Secretary to ensure
170
that the award funds are spent efficiently and effec-
tively.
‘‘(c) EQUAL ACCESS.—The Secretary shall, to the ex-
tent practical, utilize cooperative agreement, loan guar-
antee, and direct Federal loan mechanisms designed to en-
sure that all electrical generation owners have equal access
to these technology deployment incentives. The Secretary
shall develop and direct a competitive solicitation process
for the selection of technologies and projects under this
title.
‘‘SEC. 3107. FEDERAL SHARE.
‘‘The Federal share of the cost of a coal or related
technology project funded by the Secretary under this title
shall not exceed 50 percent. For purposes of this title,
Federal funding includes only appropriated funds.
‘‘SEC. 3108. APPLICABILITY.
‘‘No technology, or level of emission reduction, shall
be treated as adequately demonstrated for purposes of sec-
tion 111 of the Clean Air Act (42 U.S.C. 7411), achievable
for purposes of section 169 of the Clean Air Act (42
U.S.C. 7479), or achievable in practice for purposes of
section 171 of the Clean Air Act (42 U.S.C. 7501) solely
by reason of the use of such technology, or the achieve-
ment of such emission reduction, by one or more facilities
receiving assistance under this title.’’.
171
(b) TABLE OF CONTENTS AMENDMENT.—The table
of contents of the Energy Policy Act of 1992 is amended
by adding at the end the following:
‘‘TITLE XXXI—CLEAN AIR COAL PROGRAM
‘‘Sec. 3101. Findings; purposes; definitions.
‘‘Sec. 3102. Authorization of program.
‘‘Sec. 3103. Authorization of appropriations.
‘‘Sec. 3104. Air pollution control project criteria.
‘‘Sec. 3105. Criteria for generation projects.
‘‘Sec. 3106. Financial criteria.
‘‘Sec. 3107. Federal share.
‘‘Sec. 3108. Applicability.’’.
TITLE V—INDIAN ENERGY
SEC. 501. SHORT TITLE.
This title may be cited as the ‘‘Indian Tribal Energy
Development and Self-Determination Act of 2005’’.
SEC. 502. OFFICE OF INDIAN ENERGY POLICY AND PRO-
GRAMS.
(a) IN GENERAL.—Title II of the Department of En-
ergy Organization Act (42 U.S.C. 7131 et seq.) is amend-
ed by adding at the end the following:
‘‘OFFICE OF INDIAN ENERGY POLICY AND PROGRAMS
‘‘SEC. 217.
‘‘(a) ESTABLISHMENT.—There is established within
the Department an Office of Indian Energy Policy and
Programs (referred to in this section as the ‘Office’). The
Office shall be headed by a Director, who shall be ap-
pointed by the Secretary and compensated at a rate equal
172
to that of level IV of the Executive Schedule under section
5315 of title 5, United States Code.
‘‘(b) DUTIES OF DIRECTOR.—The Director, in ac-
cordance with Federal policies promoting Indian self-de-
termination and the purposes of this Act, shall provide,
direct, foster, coordinate, and implement energy planning,
education, management, conservation, and delivery pro-
grams of the Department that—
‘‘(1) promote Indian tribal energy development,
efficiency, and use;
‘‘(2) reduce or stabilize energy costs;
‘‘(3) enhance and strengthen Indian tribal en-
ergy and economic infrastructure relating to natural
resource development and electrification; and
‘‘(4) bring electrical power and service to In-
dian land and the homes of tribal members located
on Indian lands or acquired, constructed, or im-
proved (in whole or in part) with Federal funds.’’.
(b) CONFORMING AMENDMENTS.—
(1) The table of contents of the Department of
Energy Organization Act (42 U.S.C. prec. 7101) is
amended—
(A) in the item relating to section 209, by
striking ‘‘Section’’ and inserting ‘‘Sec.’’; and